Community Forum

South Pasadena Unified School District October 8, 2012

Joel Shapiro Superintendent South Pasadena Unified School District

Californias Education Spending Continues to Lag

California s Californias Spending Lags the Nation

California s Californias Schools Lag Behind Other States on a Number of Measures California Rank K 12 K-12 Spending Per Student (2009 10) (2009-10)* K-12 Spending as a Percentage of Personal Income (2008-09)* Number of K-12 Students Per Teacher (2009-10)* Number f K 12 Students Per Administrator (2007 08) N b of K-12 S d P Ad i i (2007-08) Number of K-12 Students Per Guidance Counselor (2007-08) Number of K-12 Students Per Librarian (2007-08) 44 46 50 46 49 50 California $8,826 3.28% 21.3 358 809 5,038 Rest of U.S. $11,372 4.25% 13.8 216 440 809

*Estimated Note: California Rank and Rest of U.S. exclude the District of Columbia. Spending per student and number of students per teacher are based on average daily attendance (ADA). Number of students per administrator, guidance counselor, and librarian are based on statewide enrollment. Source: National Education Association, National Center for Education Statistics, and U.S. Bureau of Economic Analysis

SPUSD Funding Per Student

Statute versus Funded

Positions and Programs Affected in the Last Three Years by the Reductions from the State
Reduced Teacher Specialist District Office (.5 FTE) Reduced Clerk t the District Office (.5 R d d Cl k at th Di t i t Offi ( 5 FTE) Eliminated Elementary Visual Arts Teacher (.8 FTE) Limited and Stopped Contributions to Deferred Maintenance Reduced Site Budgets by 10% Used Categorical Funding Flexibility to Support General Salaries Reducing Funding for Intervention T hi P f i R d i F di f I t ti Teaching, Professional l Development, and Supplementary Instructional Materials Stopped Funding Future Textbook Adoptions Reduced Positions by Raising Class Size in the Secondary Grades Reduced Expenditures with Outside Contractors by Reducing Reliance or Self-Performing

SPUSD Multi-Year Budget Projection Assuming Failure of Proposition 30, Proposition 38 Parcel Tax Renewal and NO Employee Reductions 38, Renewal,

2012-13 Budget -- Multiyear with Unaudit Actuals General Fund (01) Restricted/Unrestricted
2012-13 2012 13 Revenues Budgeted Revenues State Trigger (No Prop 30) Total Revenues Expenditures Total Expenditures Structural Deficit (Decrease) Ending F d B l E di Fund Balance (9/18) Percent Available Reserve $ $ $ 34,895,722 $ 35,474,323 $ 35,947,528 (4,575,109) (2,734,500) (2 734 500) -7.61% $ $ $ 34,011,496 $ (2,030,000) $ 31,981,496 $ 2013-14 2013 14 32,755,740 $ (2,030,000) $ 30,725,740 $ 2014-15 2014 15 33,402,419 (2,030,000) 31,372,419

Integral Assumptions Staffing R ti f St ffi Ratios from 34-to-1 t 34 t 1 to 32-to-1 in 2013-14 Parcel Tax Ending after 2012-13 Furlough savings assumed for 2012 13 2012-13 only No contributions made to Deferred Maintenance ($150,000) or future textbook purchase ($75,000) SPEF donation attributed in all three years

(2,914,226) $ 6,589,192 6 589 192 $ 18.88%

(4,748,583) $ 1,840,609 1 840 609 $ 5.19%

SPUSD Multi-Year Budget Projection Assuming Failure of Proposition 30, Proposition 38 Parcel Tax Renewal; but WITH Employee Reductions 38,

2012-13 Budget -- Multiyear with Unaudit Actuals General Fund (01) Restricted/Unrestricted
2012-13 2012 13 Revenues Budgeted Revenues State Trigger (No Prop 30) Total Revenues Expenditures Personnel Reductions Total Expenditures Structural Deficit (Decrease) Ending Fund Balance (9/18) Percent Available Reserve $ $ $ 34,895,722 $ $ (2,070,000) $ 33,404,323 $ (2,070,000) 33,877,528 (2,505,109) (2 505 109) 1,405,500 4.15% $ $ $ 34,011,496 $ (2,030,000) $ 31,981,496 $ 2013-14 2013 14 32,755,740 $ (2,030,000) $ 30,725,740 $ 2014-15 2014 15 33,402,419 (2,030,000) 31,372,419

Integral Assumptions $ 2,070,000 of employee reductions in 2013-14 and 201415 due to expiration of Parcel Tax and Jobs Funds Staffing Ratios from 34-to-1 to 32-to-1 in 2013-14 Parcel Tax Ending after 2012-13 Furlough savings assumed for 2012-13 only No contributions made to Deferred Maintenance ($150,000) future t tb k ($150 000) or f t textbook purchase ($75,000) SPEF donation attributed in all three years

(2,914,226) (2 914 226) $ 6,589,192 $ 18.88%

(2,678,583) (2 678 583) $ 3,910,609 $ 11.71%

Positions to Be Eliminated for the 2013-14 School Year if the Parcel Tax and/or Proposition 30 Fail
Reduced Class Size in Grades K-3 (20:1 to 30:1) 23 Teachers (23 FTE) Elementary Arts (Music and Drama) 2 Teachers (1.6 FTE) Reduced Class Si e in 9th Grade English Size 2 Teachers (1.6 FTE) Elementary Counseling 2 Counselors (1.5 FTE) High School Counselor 1 Counselor (1 FTE) Library Clerk, Middle School 1 Library Clerk (.5 FTE) Elementary Library Technicians 3 Technicians (2.25 FTE) Elementary Computer Aides ( ) 3 Aides (1.5 FTE) Intervention Counselor 1 Counselor (1 FTE) Math Coach 1 Teacher (1 FTE)

Renewal of the Local Parcel Tax

A Parcel Tax Renewal Survey Was Conducted in June, 2012 y ,
Initial Ballot Test Language
In order to: Protect the quality of education and minimize further cuts at local schools due to the State budget crisis Maintain manageable class sizes Att t and retain highly qualified t Attract d t i hi hl lifi d teachers h Keep classroom technology up-to-date And continue funding advanced programs in math, science, technology and the arts that prepare our students for success in college and careers Shall the South Pasadena Unified School District increase the expiring school parcel tax by up to $98 per year for a period of five years only, with an p y y g exemption for seniors and all money staying local to benefit South Pasadena schools?

Initial Ballot Test Language Results

Not sure Refused Definitely no 2.7 0.4 8.7 Probably no 8.0 17%

Probably yes 22.0

80%

Definitely yes 58.2

Voter Rating of the Quality f Education i S h P d Q li of Ed i in South Pasadena

Very poor 0.0 Not sure Poor 7.7 1.0 Fair 5.2

Refused 0.4 04

Good 31.0 31 0

Excellent 54.8

Voter Response to Proposed Projects

St ro ngly favo r Co nt inue funding music, visual, perfo rming art s pro grams Co nt inue funding advanced mat h, science, t echno lo gy pro grams Maint ain manageable class siz es At t ract and ret ain highly qualified t eachers Keep classro o m t echno lo gy up-t o -dat e Keep t ex t bo o k s and inst ruct io nal mat erials up-t o -dat e Keep scho o l facilit ies clean and w ell maint ained Maint ain lo w est po ssible class siz es Avo id laying-o ff scho o l librarians due t o St at e budget cut s Avo id laying-o ff scho o l co unselo rs due t o St at e budget cut s Avo id laying-o ff co mput er assist ant s due t o St at e budget cut s 0 10 So mew hat favo r

68 71 65 77 58 59 52 60 58 44 36
20 30 40

25 20 24 12 29 27 35 26 26 33 35
50 60 70 80 90 100

% Respo ndent s

Key Conclusions of Parcel Tax Renewal Survey

There is unusually high support for a renewal of the South Pasadena parcel tax because:
The quality of education is the most important issue to voters Voters have a very high opinion of the Districts performance There is solid latent support for a parcel tax to fund educational programs and services There are popular projects/services voters support and want to maintain Voters find the rationale for renewal compelling

Current 2012-13 Fiscal Year Revenues

Other Local Revenue, Oth L l R $4,865,169 Other State Revenue, $4,635,387

Federal Revenue, $1,040,397

Unfunded Revenue Limit, $6,633,399

Revenue Limit Total, $23,470,000

Current 2012-13 Fiscal Year Revenues if Proposition 30 Fails ii il

Other Local Revenue, $4,865,169

Other State Revenue, , , $4,635,387

Federal Revenue, $1,040,397

Unfunded Revenue Limit, $6,633,399

Revenue Limit Total, $21,470,000

Prop 30 Failure Reduction, $2,000,000

Current 2012-13 Fiscal Year Revenues if Proposition 30 Fails ii il

Other Local Revenue, $4,865,169 $4 865 169

Other State Revenue, $ , $4,635,387 ,

Federal Revenue, $1,040,397 Proposition 38, $1,900,000?

Unfunded Revenue Limit, $6,633,399

Revenue Limit Total, $21,470,000

Prop 30 Failure Reduction, $2,000,000

2013-14 Fiscal Year Revenues if the Parcel Tax, Proposition 30 and Proposition 38 Fail 30,
Parcel Tax Failure, $2,000,000

Other Local Revenue, $2,865,169 Other State Revenue, Oh S $4,635,387 Federal Revenue, $1,040,397

Proposition 38, $3,743,536

Unfunded Revenue Limit, $6,633,399 Prop 30 Failure Reduction, $2,000,000

Revenue Limit Total, $ , $21,470,000 ,

Comparison of Proposition 30 & 38

Mechanism Proposition 30 Raise income taxes on highest earners; increase sales tax Raise taxes on most earners; highest earners taxed more Timeframe 7 years income tax; 4 years sales tax Supporters Governor, CTA, others

Proposition 38

12 Years

M. Munger, PTA, others

SPUSD Revenue in 2012-13

SPUSD Revenue in 2013-14

SPUSD Revenue after 2013-14 May increase depending on Proposition 98 spending on other state expenditures Should increase each year, OCOF estimates $6.5 million in 2017-18

Proposition 30

$ 2 million

$ 2 million

Proposition 38

$ 1.9 million?

$ 3.7 million

Distribution Proposition 30 Defined Revenue Limit Channels

Major Caveats Some funds used for purposes other that education Divided into different "grants"; unclear how much control is given to Board or if funds can be shifted to other schools

Proposition 38

Directly to School Site