(March 6, 2012) -- At tonight's (March 6) LB School Board meeting, LBUSD management will seek Board authority to submit to L.A. County education officials two financial management scenarios: one if CA voters approve a tax increase ballot measure in November...and a second (with steps that Superintendent Chris Steinhauser has previously likened to "Armageddon") if CA voters reject a November tax increase.
In the first scenario (approval of the tax increase), LBUSD may consider closing small schools along with ten other steps...but if voters reject the November tax increase ballot measure, management seeks Board approval to consider steps including increased class sizes, reducing Advanced Placement classes for high school students, eliminating music and visual arts (elementary school), eliminating all non-mandated testing, eliminating Librarians, eliminating middle school sports and eliminating or reducing high school sports.
The agendized items are in response to a state law requirement that school districts submit plans in writing to County education officials, stating whether they expect to be financially solvent for the next three years and how they plan to do so.
[LBUSD management text] BACKGROUND:
The state has experienced dramatic declines in revenue due to the severe economic downturn
which began in the fall of 2007 and has made extensive reductions to public education funding
as a result of the decline in state revenue. Based on the current status of the state budget and
staff multi-year projections, the District faces major budget deficits.
Staff has received information that, due to budget reductions not specified but included in the
Adopted Budget and two subsequent years, the county office has required the District to submit
specific Board-approved revenue enhancements, expenditure reductions and/or flexibility
transfers that would allow the District to project a reserve level that meets the minimum
requirements of the State Criteria and Standards for all three years. Furthermore, the county
office is requiring a Board-approved fiscal stabilization plan be submitted with the 2011-2012
Second Interim Report. This Fiscal Stabilization Plan has been prepared based on the
assumptions included in the Second Interim Report. The major assumption of note in this Fiscal
Stabilization Plan is that the tax initiative included in the Governor’s Budget Proposal for 2012-
2013 is successful. A Fiscal Stabilization Plan assuming the failure of the tax initiative is
included in this Board Agenda under a separate action.
Long Beach Unified School District
Fiscal Stabilization Plan Updated March 6, 2012
The Governing Board of the Long Beach Unified School District recognizes the need for fiscal
solvency and understands that budget plays an important role in student achievement and
success. Toward that end, during this economy and the State budget crisis, the Board may
consider budget reductions and revisions in any department, division, program, or service in the
District, including, but not limited to Budget Reduction items as well as reductions in force or in
hours for management and non-management certificated and classified positions. In addition,
recommended actions of reducing unrestricted General Fund expenditures may include
utilization of categorical funding, revenue enhancements, realignment of priorities, and
implementation of other reductions. The Board is committed to taking prudent measures to
ensure the reserve levels meet the state minimum requirements.
The following ideas may be considered:
1. Seek efficiencies and savings in the health and welfare benefit programs
2. Close small schools
3. Freeze certificated and classified hiring
4. Consider staffing calendar changes, such as from 12- to 10-month
5. Evaluate programs and services
6. Implement procedures related to efficiencies and effectiveness
7. Research and apply for grants
8. Work with foundations and other external resources for additional funding
9. Explore State Tier III flexibility options
10. Explore and maximize use of categorical funding
11. Reevaluate or eliminate use of District cell phones
Update:
At its February 21, 2012, the Board of Education approved budget reductions estimated to save
$9,660,000 in 2012-2013. These reductions included 82 FTE teaching positions, closure of an
elementary school and a reduction in transportation services. Further reductions will be
proposed to the Board in the coming months with a goal of $15-20 million in savings for the
2012-2013 fiscal year.
Fiscal Stabilization Plan – Assuming Failure of Tax Initiative Planned for November 2012Fiscal Stabilization Plan -- Assuming Failure of Tax Initiative Planned for November 2012
BACKGROUND:
The Board has been presented a Fiscal Stabilization Plan under a separate action item on this
agenda. That Fiscal Stabilization Plan assumes passage of a tax initiative planned for
November 2012.
Staff has received information that, due to the uncertainty of the Governor’s tax initiative
receiving voter approval in November 2012, the county office has required the District to submit
a Board-approved contingency plan for offsetting a potential $370 per ADA reduction to revenue
limit funds in 2012-2013. This contingency plan is required to be submitted with the 2011-2012
Second Interim Report.
Long Beach Unified School DistrictFiscal Stabilization Plan -- Assuming Failure of Tax Initiative Planned for November 2012
The Governing Board of the Long Beach Unified School District recognizes the need for fiscal
solvency and understands that budget plays an important role in student achievement and
success. At this time of submission of the District’s Second Interim Report for 2011-2012, there
is a high degree of uncertainty due to the State’s economic recovery and the uncertain outcome
of the Governor’s tax initiative which would implement proposed trigger reductions for 2012-
2013. In the event that the November 2012 tax initiative is unsuccessful, the District’s funding
will be reduced by an additional $370 per ADA or approximately $29 million. If this should
occur, the following ideas may be considered:
1. Reduce school year from 180 days to 160 days
2. Close multiple small schools
3. Assign principals to two schools
4. Reduce and/or eliminate counselors
5. Eliminate AVID program
6. Eliminate all adult education offerings
7. Increase class sizes
8. Reduce number of Advanced Placement classes available to high school students
9. Reduce or eliminate work-based learning programs
10. Seek efficiencies and savings in the health and welfare benefit programs
11. Freeze certificated and classified hiring
12. Consider staffing calendar changes, such as from 12- to 10-month
13. Eliminate all non-mandated transportation
14. Eliminate encroaching programs
15. Eliminate music and visual arts programs at elementary level
16. Eliminate all non-mandated testing
17. Eliminate middle school sports
18. Reduce or eliminate high school sports
19. Eliminate librarians
20. Standardize all calendars and close Administrative Building at specific times
21. Reduce or eliminate use of District cell phones
22. Travel and conferences only allowed if mandatory for funding
23. Consolidate or collapse Central Offices
24. Eliminate district-wide and school-wide mailings
25. Evaluate and eliminate all non-mandated programs
26. Research and apply for grants
27. Work with foundations and other external resources for additional funding
28. Explore State Tier III flexibility options and maximize use of categorical funding
29. Implement procedures related to efficiencies and effectiveness
The Board acknowledges that the District has addressed the need for a contingency plan with
the appropriate Board options by which to address this potential reduction in funding. This plan
will allow the District to maintain fiscal solvency for both 2012-2013 and 2013-2014. A more
refined plan will be submitted with the District’s 2012-2013 Adopted Budget based upon the
budget planning recommendations issued by the Los Angeles County Office of Education. Any
additional updates to that plan will be dependent on the adopted 2012-2013 State Budget.
