' , ',*'-W1 0 >NY'L?

w 4ilt INTEROFFICE CORRESPONDENCE T ,*>*%' Los AngelesofUnified School District V Dflroi,ri fl, Offce
st^

ro rtlA
;

the Superintendent

TO:

Members, Board of Education

DATE: March 13,2012

FROM:

Dr. John E. Deasy, Superintendent

2012-13 BUDGET STRATEGY

SUBJECT: FISCAL YEAR

This informative provides the context for the Second Interim Financial Report and outlines our budget strategy for 2012-13, which aims to provide needed stabilify to our schools as they begin budget development. This informative also discusses the District's multiple budget plans to address the uncertainty at the state and local level, and how this uncertainty impacts our reduction in force notices.

Background Context: As in previous years, it is expected the state will delay important budget decisions, including the impact of the potential mid-year trigger cuts for 2012-13. However, schools and school districts have fixed deadlines and cannot wait for the full resolution of the state's budget. Schools need stability and time to plan for the upcoming year so that they can prioritize program needs. March is a key month in the District's annual budget planning process that ends in June. On March 15 we face two statutory deadlines: l. Deadline to notice permanent certificated employees that they may be subject to reduction in force. 2. Second Interim Financial Report updates the District's financial status and helps starts school budget development.
In developing our strategy, we considered two critical factors: l. There is greater uncertainty about next year's state budget than in any prior year. 2. We must provide adequate noticing of employees to ensure we can proactively respond to changes in the state's budget. Notwithstanding these factors, I am recommending a bolder and more aggressive approach for the District's 2012-13 budget and fiscal stabilization plan. This promotes stability for our schools while we continue to find budget solutions. Budget Strateev: IVe have been developing a strategy that provides multiple budget plans for next year as we continue to look for solutions and shared commitments. On February 14,2012, the Board of Education adopted Board Report No. 173 - llll2, Adoption of Budget Balancing Plan to Address 2012-13 Deficit, as amended, with: l. The Board will be presented with the 2012 Fiscal Stabilization Plan with the Second Interim Financial Report (reference Attachment A and B, respectively) 2. The Board directs the Superintendent to report back within two weeks with options and alternatives to avoid the elimination of Adult Ed, Early Ed, Arts and Cafeteria (reference Attachments C, D, E and F, respectively) 3. The Board authorizes the Superintendent to assess whether the June 2012, November2}l2 or March 2013 election will provide the optimum opportunity for a parcel tax to be approved (reference Board ReportNo. 197 - ll/12). 4. The Board authorizes the Superintendent to prepare necessary language for a June 2012 parcel tax and present it to the Board for approval (reference Board Report No. 197 - llll2).

A combination of advocacy atthe state level and updated financial projections based on ne\ry information led to the following:

has

l.

2.

A potential $104 million reduction in state cuts for 2012-13. a. We have received a commitment from the governor that could result in the reversal of $78.8 million in transportation cuts in2012-13. The 201l-12 portion of the transportation reduction was partially reversed through the legislature's passage of SBSl late last month (the $14 million decrease in the trigger from SBSl was already included in our $557 million deficit). I want to applaud the Board's leadership on this issue. The potential change in transportation cuts can be directly attributed to your swift action to litigate and advocate. b. We have also received clarification from the governor that we may no longer face 524.9 million in cuts that could have resulted from the new Weighted Student Funding. I recently testified at a State Senate hearing on weighted student funding proposal to ensure fairness to all District students. In January the administration proposed to 'hold harmless' districts for2012-13. The details of this proposal are still under discussion at the state level. Updated reporting in the Second Interim resulted in an additional $76.5 million (reference the Second Interim Informative in Attachment B).

These developments have enabled the restoration

if $180.5 million in the District's 2012-13 budget (reference

Attachment A for a detailed list of the items that are being restored). I am recommending that school budget development rely on these positive updates. However, we will need to continue our advocacy efforts to ensure the governor's final budget does not undo the transportation restorations or the Weighted Student Funding
changes.

Unfortunately, some of the positive news from the state level has been countered with negative news at the federal level. Our federal funding allocated to schools has taken a significant hit. In addition, I have recommended the shift of half of National Board Certification to our Title II funding. To offset these reductions, I am recommending that we restore $77 million in General Funds directly to schools if we receive additional funding. This restoration will be included in the three plans below.

I recommend a qualifed certification and the following three budget plans:

Plan

l: We can reduce

our 2012-13 deficit by another $60

million if UTLA withdraws their

201

l-

12 furlough arbitration or if we win the arbitration. PlanZ: If we receive one-time negotiated agreements for2012-13 another $220 million.
resolve the remaining $173.5 million. (Reference Attachment A for a detailed list).
\rye can reduce our

deficit by

Plan 3; Finally, we would need additional revenue from the State or other shared sacriftces to

Here are the impacts of the above plans on the District's2012-13 Budget.
Deficit Tracker Deficit as of February 14,2012
Potential increase in State revenue due to successful advocacy for restoration of transportation and hold harmless for Governor's weighted Student Formula 2nd interim budeet

Deficit
$557 M

- $104

- 76.s
$377 M
+ $13.7 M

Deficit as of Second Interim

General Fund allocation direct to schools to offset loss of fundin

Deficit as of March 8,2012

Reduction in defrcit after

$390.2 M
furlough disagreement is resolved

urLA 20ll-12

- $60 +527 M $357.2 M

General Fund allocation di

to schools to offset loss of fundi

Deficit after UTLA 20ll-12 furlough disagreement is resolved

one-time 2012-13 shared commitments with collective bargaining partners
General Fund allocation di to schools to offset loss offundi

- s220
+ $36.25

Delicit to be reduced if we receive additional State Revenue oradditional

$173.5 M

Economic Update:
areas

State funding levels of K-12 education are very uncertain for 2012-13 and for years beyond. The three biggest

of uncertainty are:

1.

2.

3.

The revenue assumptions pro-posed under the current state budget proposal may be too optimistic (the Legislative Analyst Office' (LAO) indicates that while job growthan economic confidnce is rising, persistent joblessness and continuing high unemployment rmain key problems, causing them to question the governor's forecasts). The consequences of the governor's and other ballot initiatives not passing. If the governor,s November ballot fails, the 'trigger' in his budget would reduce K-12 education revene limit by an estimated $370 per student. However, this estimate could grow to $455 - $470 per student due to recent changes to the governor's budget proposal. Most troublingly, a combination of lower revenues, either due to economic developments or the failure of the ballot initiatives, could cause a.'rebaselining' of the Proposition 98 minimum funding guarantee to a historical low point, from which it would take years to recover to pre-recessionary levJlsl

These issues are not accounted for in the above deficit calculations, and they could drive the figure even higher. In addition, the legislature is likely to wait until the May revision to make final budget decisios, and the outcomes of the various ballot initiatives will not be known until November. Financlal uncertainty for school districts will surely be the norm for months to come.

http://www.lao.ca.gov/an alysis/zor2/update/economic-revenue-up date-o227t2.pdf

Reduction in Force Notices to Certificated Emplovees: Given the economic uncertainty facing the state and the District discussed above, we have no choice at this time but to proceed with the certificated layoff notices on March 9,2012. These include the following notices: K-12

ElementaryTeachers

3,302
1,254

K- 12 Secondary

Teachers

K- 12 Support Services
Ear Education

Personnel

647
687

Program Adult BlucationProgram

AllCertificated

3,617

Adminisators

2,206

Total l.

ll,7l3
- ll/12, Reduction in Force

On February 14,2012, the Board of Education adopted Board Report No. 148 Notices to Certificated Employees, as amended, with: Notices not to be issued until March 8,2012. 2. Expedited negotiations with all bargaining units.

As to certificated negotiations with UTLA, they have been ongoing and focused solely on a potential package to reduce layof. UTLA leadership has been discussing internally the need for a major job-rescue effort but, at this time, no commitments have been made. UTLA further understands that any package, even if immediately agreed upon, would not avoid the layoff notices being sent because there would not be enough time for the union ratification procedures. Nevertheless, their goal would be to reach a settlement which would make the job-saving stakes evident to the ratification voters, provide some sense of stability to schools, and enable the District to rescind some layoff notices.

'fhe Human Resources Division will launch a web page on March 9th to assist employees by providing helpful answers to questions and resources available during the reduction in force process. The layoff hearings would then commence on April l6th if no alternate solutions are reached prior to this date. In the event that the District is in the position to rescind Reduction in Force notices, immediate notification of rescissions will be available on the Human Resources website where the employee numbers of individuals receiving rescission notices will be posted. In addition, principals will be sent via email a list of their employees who will receive rescission notices. Employees will also receive their official rescission notice by U.S. mail. Next Steps:
The challenges we face are substantial. We have faced harsh realities before, but we must not and cannot become coriplacent. We simply cannot count on external aid unless we fght for it. We cannot come to commitments unless we always put student achievement first. We cannot rely on new revenue unless we educate our friends and neighbors on the choices in November. And yet I have hope because \rye are an organization and community of people dedicated to what is best for our students. We must act and everyone has a role to play. Here are some key milestones in the months ahead: March 16 - March 29: School Budget Development May l5 - Governor's May Revise May 3l - Credit rating meeting for 2012-13 Tax Revenue Anticipation Notes (TRAN) June I - Third Interim June 14 -Tentative TRAN sale date so District has cash on July 2nd June 29 - Budget Adoption

shared

o o . o o o

valued employees, stabilize our schools, and ensure that our students have the opportunities and futures they deserve. Together we

will lower our deficit, retain our

ATTACHMENT A March 13,2012

LOS ANGELES UNIFIED SCHOOL DISTRICT Fiscal Stabilization Plan
Stabilization Plan as of Second Interim:

LosAngeles Unified School District's 20t2-t3 Budget Balancing Plan

RESTORATIONS

(Tota-$390 Mllonl

* Note: S390 million reduction plan is to address the Second Interim Deficit of $377 million and to allocate $13.7 million of additional resources to schools.

To be restored: Second Interim Update ($f 04M + $76.5M = $180.5 M) but rescission of notices is dependent on Governor's May Revise

Items have been restored in the budget,

Item 6-8 Class Size (maintains current level. instead of increasins, by l) Counselor Ratios (maintains current level, MS 790:1. HS 690:l) Adult Ed (Career Technical Education (CTE) to high school students through the Reeional Occupational Prosram OP) Magnet Schools (maintains current level of support) 4-5 rc\ (maintains current level. instead of increasine bv 3) Nurses (maintains cunent ndine level) Transportation (restores all but $5M) Safety (police for new schools) Options (restores seats for approximately 2.200 students) K-3 (maintains current level24:l instead of 30:l) Accelerating Academic Literacy (AAL) (restores two-period block Tier 3 English Language Arts intervention for grades 6-8 at middle schools and grade 9 at hish schools) Fundins directlv to schools lschool determined needs)

Amount $6.4 M $8.0 M

$r5.6 M

sl.7 M
M M M M $r3.3 M $63.3 M $4.0 M
$20.4 $4.2 $29.9 $4.0

Total

$9.7 M $180.5 M

Plan I Items to be restored if UTLA dismisses

'll-12 furlough arbitration

or we win arbitration ($60I)

Amount s27.0 M $33.0 M $60.0 M

Item Fundine directlv to schools (school determined needs) Adult Ed (CTE. ESL. GED)

Total

Item Options (restores 14 centers) Earlv Ed (will be able to serve approximatelv same number of students) Fundine directlv to schools (school determined needs) Arts (restores Elementary Arts) Adult Ed (expanded CTE, Credit Recovery, ESL/Parent Education) Librarians (maintains current level) Cafeteria Suppott (restores 507o of general fund support) SRLDP Maintenance (restores all but new maintenance company) After School (maintains current level) Gifted & Psycholosist

Amount
$15.0 M $27.0 M $36.2s M $18.6 M $45.0 M $5.2 M $18.2s M $36.5 M $8.s M $6.9 M $2.8 M $220 M

Total

Plan 3: Items to be cut ($173.5 M) if we do not receive additional revenue from the State.
Item Financial Managers (middle schools shared financial managers to oversee student bodv accounts) High School Support (schools decide ifthey want to pay for SLC lead teachers, AcaDeca, Science Center, and extra auxiliary for Athletic Directo) Adult Ed (-47% of program is fee based or eliminated) Cafeteria Support (50% ofGF support reduced, move to E basis and reduce food service workers) Transnortation (close vacant positions, etc.) Maintenance (new maintenance company closed & reorganization of maintenance oositions) School Funding based on poverty ($85k no longer provided to non-Title I
schools)

Amount
$2.7 M $7.3 M s84.2 M

$r8.25 M
$5.0 M $8.s M $3.3 M $2s.0 M

Central & KLCS (move central office positions to E-basis Q7 day pay cut & cut $ l.6M general fund support for KLCS) Effciencies, Teacher Block Grant, NBC, Expiring Grants (end expiring grartt Drosrams and move NBC to Title II)

sr9.2 M
$173.s M

Total

ATTACHMENT B March 13,2012

LOS ANGELES UNIFIED SCHOOL DISTRICT
Second

Interim Financial Report

This informative provides a background overview of the 201l-12 Second Interim Financial Report ("Report"), which, under Education Code sections 42130 and42l3l, is to be submitted to the Los Angeles County Office of Education ("LACOE"). The Report contains cunent fiscal year revenue, expenditure, and cash projections for the General Fund and funds impacting the General Fund. The Board is requested to certiff the Dishict's financial condition as qualified, meaning the District may not be able to meet its financial obligations for 201 l-12 and the two out-years. In addition, the Report contains a multi-year projection and fiscal stabilization plan for 2012-13.

I. .
.

MAJOR HIGHLIGHTS
The District will be able to meet its financial commitments in 201l-12 and meet the 50 General Fund ending requirement set forth in the District's Budget and Finance Policy.

balance

The projected unassigned/unappropriated ending balance is 574.6 million, which is an increase of $56.5 million from $18.1 million at First lnterim. All of the unassigned ending balance has been assumed to support expenditures for

20t2-13.
The General Fund (Restricted and Unrestricted combined) cash balance is projected to be $173.6 million at the end of 20ll-12. Inter-fund bonowing is projected to be necessary at various points towards the end of the year. In addition, an estimated cash offset of $68.8 million from redevelopment properfy taxes that State is relying upon is uncertain and cannot be depended on for cash flow purposes in20ll-2012. The out-years show cumulative deficits for 2012-13 and2013-14 of negative $377 million and negative $976 million, respectively (the fiscal stabilization plan is in Attachment A above).

r II.

CHANGES IN REVENUES, EXPENDITURES, AND ENDING BALANCE Decrease in 201l-12 Projected Revenues - Since First Interim, there has been a $20.6 million decrease in projected revenues for General Fund - Unrestricted. This decrease has taken into account the State mid-year reduction triggers of 53 I .6 million, net of higher ADA revenue of $8.3 million. In addition, other federal reimbursement revenue sources decreased by S9 million, offset by an increase in State Lottery Revenue of $5.8 million.
General Fund - Unrestricted are higher by S26.4 million. The mairr reason for this increase is that furlough savings are uncertain and cannot be factored into expenditure savings. This expenditure increase is offset by lower Health and Welfare contributions of $15.4

Increase

in20ll-12 Projected Expenditures - Expenditures for

million, due to lower participation.

Increase in Projected Net Contributions/Transfers - The General Fund contributions to resfricted programs increased by S14.4 million. The primary reasons are an ofet for the presumption of furloughs in categorical programs and higher operating cost in some programs. lnterfund transfers to Special Education Program and Cafeteria Fund increased by $l1.8 million and $7.9 million, respectively. Conversely, transfers into the Federal Early Retirement Reimbursement Program and for COP Debt Service declined by $7.8 million.
Decrease in Ending Balance - The projected total ending balance was lower by $54.0 million. The additional increase in unassigned/unappropriated balance of $56.5 million has been factored inthe2012-13 budget.

Components of Ending Balance (in millions)

General Fund

Unrestricted

Fiscal Yer 20ll-12

Second

First Interim
$9.5

Interim
Nonspendable $9.5

Variance

Assigred
Unassigned-Reserve for Economic Uncertainties Unassigned/Unappropriated

357.9

468.3

(r r0.4)
0.0 56.5

65.4

65.4

74.6 ss07.3

r8.l
s561.3

201

l-12 Ending Balance

Assigned Ending Balance: Certain account balances remain available to schools and offices for future use. Carryover accounts include school donation accounts, per pupil school discretionary accounts, school determined needs funds, new school opening funds, funds reserved for fire damage, reserve for funding the District's OPEB liability. The assigned fund balance (i.e. carryovers) at Second Interim is lower than the First Interim by $l10.4 million. The main factor is the release of $91.8 million of the revenue uncertainty reserve to cover the mid-year trigger cuts and furlough elimination.

III.

2OII-12 PROJECTED CASH

BALANCE

will be S173.6 million. This is net of a positive $l 19.3 million restricted cash balance and $54.3 million unrestricted cash balance as a result of interfi.rnd borrowing from other funds. Two significant changes since First Interim are the uncertainty of $68.5 million in additional redevelopment property taxes and changes in furlough savings.
The projected cash balance for the General Fund

IV.

2012-13 AND 20t3-r4 UNRESTRICTED GENERAL FUND (OUT-YEAR PROJECTIONS) The Second Interim projection results in a deficit of 5377 million and $976.5 million for2012-13 and2013-14, respectively. A higher beginning balance, decreases in expenditures and changes in the assumptions about the
State triggers led to a projected net improvement of $180

million in20l2-13.

Decreased Revenues - There is a slight decrease in revenue of $2.3 million in2012-13 and a net decrease in revenue of $l I million in 2013-14. The changes in revenue estimates include the following:

t . . ' o

Zero cost of living adjustment (COLA) is assumed for2012-13 and2013-14. Increase in lottery revenue due to a lottery rate changes of S7.3 million in2012-13 and $6.6 million in 2013-14. Decrease in Medical Administrative Activities revenue of $5.2 million due to reduce participant. Decrease in K-3 class size revenue of $4.5 million in2012-13 and2013-14. Estimated revenue limit decrease of $21.8 million due to changes in Kindergarten enrollment in 201314.

. .

Decreased Expenditures - Unrestricted expenditures have decreased by $ 22.3 million and $28.8 million in 2012-13 and20l3-14, respectively. The changes in expenditure estimates include the following: Decrease in salary of $7.9 million based on the 201l-12 Second Interim salary estimate. Employee benefit cost decreased$22.5 million and $24.5 million in2012-13 and2013-14, respectively. This is due to a decrease in health and welfare cost contributions and PERS rate changes. Decrease in expenditures of S8.0 million attributable to changes in kindergarten enrollment. Decrease in expenditures is offset by the cost of parcel tax of $3.9 million, summer schools for 2012-13 of $l million, cost of splitting schools of $2.8 million, and changes in indirect cost of $6 million. 20ll-12 State Trigger Assumptions -2012-13 Second Interim defcit assumed a 57.l million revenue limit impact with the Transportation revenue to be ongoin g in 2012-13 but eliminated in 20 I 3- 14. The estimated revenues do not contain any Weighted Student formula impact to the District. Released Prior Year Deferrals - Revenue associated with cash defenals in20ll-12 and 2012-13 ($334 million and $333 million) is used to support expenditures in2012-13 and20l3-14. Part of the 201l-12 cash deferals was used to offset the impact of the 20 I I - 12 Trigger reduction of S3 I .6 million and loss of savings

. . r

fiom turlough of $60.2 million. Anticipated 2012-13 State Trigger - The 2012-13 estimated budget deficit does not include the $370 to $470 per ADA 2012-13 state trigger reduction in the event that the Governor's initiative does not pass.

It is important to note that there is still a great uncertainty regarding the out-year revenue projections due to the trigger language included in the Governor's Proposed January 2012-13 Budget. There is still the added uncertainty as to the impact of the proposed V/eighted Student formula to the District.

The Legislative Analyst Ofce (LAO) estimates that the State general fund may be $6.5 billion lower and its revenue estimate resulting from the Governor's initiative continues to be lower than the administration's. Accordingly, if any of this lower revenue forecast proves to be accurate, the State will need to identiff additional solutions and/or revenue s to balance 2012-13 State Budget. (Reference Attachment A above for a list of proposed balancing alternatives)

ATTACHMENT C March 13,2012

LOS ANGELES UNIFIED SCHOOL DISTRICT

Options: Adult Education Program

The planned redesign of the Division of Adult and Career Education aims at sustaining vitally needed educational and career preparation offerings for District high school students and adults. 'l'he redesign scenarios that follow, with the exception of Scenario A, are based on amounts of available funding resulting from potential negotiated agreements with the District's labor partners. (Note: To augment the budget, the Division is exploring the possibility of chargingfees
classes currently offered at no cost, as well as increasingfeesfor thosefromwhichfees are presently collected.)

for

Scenario A: Items Restored in the Budget

Total2012-2013 funding of $15.6 million would be dedicated to continue providing Career Technical Education (CTE) to District high school students through the Regional Occupational Program (ROP).

High
Fiscal

Year

Amount
$15:60
$

School Students
46;075, 46,075
0,

20lt-t2
20t2-12
Reduction

15.60

s0,00.

Scenario B: Furlough Arbitration Total funding of $33 million would be utilized as follows:

'. . . . . . .

High school credit recovery classes through 100 Individualized Instructional (1.I.) labs at District high schools High school credit recovery classes through LI. lab instruction at 10 of the Division's largest facilities 1 60 ESl/Parenting classes at District elementary schools, under the supervision of the Division principals at the l0 sites I 50 ESL classes for high school students and adults at the l0 Division sites 50 CTE classes for high school students and adults at the l0 Division sites Transportation of high school students to the l0 Division sites GED preparation and testing for adults Significantly reduced Division Central Office operation

Scenario C: Negotiated Agreements with Labor Partners This assumes the availability of an additional $45 million-to add to the S33 million from Scenario B, for a total of S78 million-through the receipt of additional revenues from negotiated agreements with our labor partners.

' . .

An additional l0 Division sites would offer credit recovery and CTE classes for high school students and adults, as well as ESl/parent education classes Increased credit recovery, CTE classes, and the ESL/Parent Education classes at the original l0 sites Additional transportation services to high school students taking classes at Division sites

Concurrent Students
Scenario Class

Adult Students
Current
Scenario Scenario

Current FY

Scenario B

Description

20n-t2
I

2012-13

c2012l3

FY 201 lChange
12

c20t2l3
Change

82012-13

Apprenticeship

t24

124

Citizenship Elementary Basic Skills English

Second Language

836

836

3,539

(3,539)

18,961

696

696

I18,006

72,000

36,000

Health

39

39

346

346

Parenting
Program for

8,966

8,966

26,082

5,ooo

5,000

(r6,082)

Older Adults
Secondary

t9

(1e)

9,412

(9,412)

Basic Skills Vocational Ed

32,278

32,278

27,202

15,278

I1,480

(444)

(crE)
TOTALS

6,032

2,400

3,632

47,612

4,800

42,812

51,572

44,382

3,632

(3,ss8)

248,581

98,384

es2n

(54,90

ATTACHMENT D March 13,2012

LOS ANGELES UNIFIED SCHOOL DISTRICT

Optiops: Early Childhood Education Programs

Early Childhood Education (ECE) provides full-day, full-year and part-day, part-year programs to serve children from six weeks to frve years of age. The programs are funded by the Califomia Department of Education, Los Angeles Universal Preschool, and District general funds. This paper includes program descriptions, program scope, and budget information for the 20ll-2012 school year and proposed scope and budget for 2012-2013. This proposal is contingent upon negotiated agreements with the labor partners.

Early Education Centers:

The full-day, full-year early care and education progftlm is for two through five-year olds, prior to kindergarten entry. The program supports child growth in the areas of cognitive, language, sociaVemotional, and physical development using an approach that is developmentally, linguistically and culturally appropriate. At the same time, the program meets the child care needs of low income families in our District communities. Families must be working, attending a training program or actively seeking employment, and must meet State determined income criteria to be eligible for this program. It is supported by California Department of Education and Federal Child Development funds.

In order to decrease the Early Childhood Education (ECE) encroachment on District general funds, ECE is proposing a reduction in the number of early education centers from 107 in 2011-2012 to 84 in 2012-13. Twenty-four small early education centers with licensed capacities of 85 or fewer students will be closed. Small centers generate less revenue making them more expensive to operate. Two new early education centers, Central Region #2 and Glassell Park, funded by bond measures, are under construction and projected to be licensed to open in summer and fall 2012, respectively. In addition to opening these two new centers, we plan to increase the number of students enrolled at the remaining 84 early education centers. By operating only the larger centers at full licensed capacity, ECE will be able to provide full-day, full-year services to 10,000 students in20l2-13 as compared to 10,060 students in 201 l-12 maximizing our contract with CDE as well as minimizing the ECE District encroachment.

20tl-2012 Current

and

Number of Earlv Education Centers:

t07
$25,000,000

District General Fund:

2012-2013 Number of Early Education Centers:

84

District General Fund:

s26,090,512

Early Childhood Education Programs at Elementary Schools:

The part-day Califomia State Preschool Program and the Pre-kindergarten Family Literacy Proeram are three hour, frve-day per week programs for three and four year old children. The program supports child growth in the areas of cognitive, language, social/emotional, and physical development using an approach that is developmentally, linguistically and culturally appropriate. Families must meet State determined income criteria to be eligible for these programs. Both programs are supported by California Deparfnent of Education funds.

In order to increase the number of students served in the part-day, part-year California State Preschool Program, 29 classrooms at elementary schools will need to be licensed by the Deparnnent of Social Services (DSS). The licensing process can take several months as it involves multiple visits by DSS and the fire department. The cooperation of these two agencies will be key in expediting the licensing process. When programs are maintained at ll enrollment and proper stafng is utilized, this program has the potential to generate funds and reduce the encroachment.

20ll-2012 Current

CDE Funding:
2012-2013

$15,235,000

CDE

Funding:

520,110,464

*3 of the elementary school sites/I3 classrooms are located at charters

Los Angeles Universal Preschool (LAUP) provides full funding for two District preschool classrooms for four year old children. The program supports child growth in the areas of cognitive, language, sociaVemotional, and physical development using an approach that is developmentally, linguistically and culturally appropriate. LAUP is tunded by First 5 LA.

LAUP currently provides full funding to operate two preschool classrooms and enhancement funds for 22 classrooms. Enhancement funds are used for professional development activities and instructional materials. ECE has requested approval from LAUP to use the enhancement funds to support full program operations for five additional classrooms for a total of 282 preschoolers.

20ll-2012 Current

LAUP tundine:

$380,160

Number of fullv funded sites:

LAUP

funding:

$1,085,000

School Readiness Language Development Program:

The School Readiness Language Development Proeram (SRLDP) is a part-day, part-year program for children who will be four years old by December 2nd of the year of enrollment. The program stresses oral language development, kindergarten preparation and parent participation and education. SRLDP classes are in session for 2-hours, 20-minutes, Monday through Thursday. Children may attend either a moming or afternoon session. Fridays are pupil free days for the teacher to conduct parent education sessions as well as for planning, preparation and professional development activities. Enrollment in SRLDP does not require families to meet income eligibility criteria as in the Early Education Centers and Califomia State Preschool Programs at Elementary Schools.

20ll-2012 Current
Number of sites:

District General Fund:

2012-2013 Number of sites:

$41,800,00

District General Fund:

$36,500,000

Infant/Toddler Programs at or Near District High Schools:

California School-Age Family Education (.CalSAFEl is a rll-day, part-year program for infants and toddlers and their high school-age parents. The program provides support services for enrolled expectant or parenting students to improve academic achievement and parenting skills and to provide quality child care and development for their children. It is supported by California Departrnent of Education funds. Funding for the CaISAFE program for the 2012-13 school year has not been confirmed by the California Department of Education. In the event that the CDE does not provide funding ECE is requesting that District general funds be used to support this essential program for teen parents and their very young children.

20ll-2012 Current
Number of sites:

District General Fund:

s247,838

20'i2au3
Number of sites:

District General Fund:

Conclusion:
The District offers a wide variety of special education programs, supports and services for children birth through 5 years of age with identified disabilities. Services are provided at elementary school SRLDP and CSPP classrooms and early education centers. Both state and federal funding is funneled through the Division of Special Education. There are currently 680 preschool students with special needs fully included in these programs. Each student's IEP mandates l}}%oparticipation with typical peers. The closure of SRLDP and early education centers will require the District to provide an alternative inclusive placement. The families of children with special needs are not required to meet financial eligibility criteria. The part-day, part-year progftms funded by Los Angeles Universal Preschool and the California Department Education can be sustained with no additional support from the District. The firll-day, full-year programs at early education centers will require $26,090,512 from the District general fund. The continuation of the infanltoddler program at District high schools will necessitate the allocation of $967,948 from the District. $36,500,000 from District general funds will be needed to continue the School Readiness Language Development Program at a reduced number of sites.

of

ATTACHMENT E March 13,2012

LOS ANGELES UNIFIED SCHOOL DISTRICT

Options: Elementary Arts Program Proposals for 25o/or 507o and 75o/o Budget Restorations

Efforts at raising funds from the orivate sector

Although there are coordinated efforts in place to identifu private funds to support the District's adopted Arts Education Plan, so far no significant amount has been raised.

Shift to a focus on learnins in and throush the arts in the Common Core In anything less than a full restoration of the Elementary Arts Program budget, the focus of the program will shift to the relationship of quality arts instruction to the District's roll-out of the new Common Core State Standards. Pedagogy common to all content areas may be addressed effectively through arts teaching strategies, and the reflective processes inherent in quality arts instruction nurture student inquiry, critical thinking and creative expression. The Elementary Arts Program will assist schools in targeting practices that move students to the deeper levels of thinking required by the Common Core. The Arts Education Branch will track data to document increased student achievement and other indicators of school success that are the result of a high quality education that includes the arts.

If the District is successful in negotiations with our labor partners, the core Elementary Arts Program will be fully restored to its current level. However, in the event schools are not able to augment their arts instruction
through school purchases as in previous years, there may be a necessity to redesign the program distribution. Below we are presenting three scenarios at 7 5o/o, 50Yo and
25o/o

to be used as we continue to seek private funds.

\ith

a 257o restoration. 60 schools

will be identified

as Arts at the Core* elementary schools, distributed

equitably across the District. Schools applying for the program will agree to a binding commitment to professional development, a collaborative instructional model, action research and data gathering.

With a 507o restoration. in addition to the 60 Arts at the Core schools, an additional 98 Arts Focus* elementary schools will be identified, with a commitment to professional development and a collaborative instructional model. A total of 158 Arts at the Core and Arts Focus schools would be served. With a 757o restoration, the number of Arts will
Focus elementary schools

will

increase

to

196.

A total of 256

Arts at the Core and Arts Focus schools would be served.

Schools served
be selected by application and an effort

will

be made to respect articulation into middle and

high schools with strong existing arts programs so that students within those feeder patterns may be prepared for advanced work.

*The difference between the Arts at the Core schools and the Arts Focus schools would be the amount of direct arts instruction provided and the level of commitment to action research and data collection.

Proposal for 25o/o Restoration of Arts Education Branch Budget: $4.65 million

(From 5-9 semesters, depending on enrollment)

60
Arts at the
Core Schools
Datawill be gathered and tracked to defne benefits of arts education and role of the arts in Cotnmon Core instntction and assessment

In one year:

Average: 7 semesters Vocal Music: full year, I day per week lnstrumental Music: full year, 1 day per week (instruments included) Dance: one semester, I day per week Theatre: one semester, 1 day per week Visual Ats: one semeste I day per week
(Schools mqy opt to purchase additional senester(s) in any discipline)

700 students per school could receive

foundational instruction in
one or two

disciplines,
$5,000 for capac building: arts partnerships, teacher training rate, textbooks, materials Professional development for generalist classroom teachers Parent workshops in the arls one day per week for a

minimum

of

one semester

Over the
course ofthe six or seven years ofthe elementary grades, every student could receive

foundational instruction in

all four
disciplines
Schools

will

be selected by application and

will be distributed equitably throughout the district.

assr

Binding Criteria:

e r .

Commitment to action research and data collection on achievement in arts literacies, achievement in Common Core attendance, student engagemeht and parent satisfaction Common assessments of arts benchmarks in grades 2 and 5

Commitment to professional development for school faculty in the Arls Inslruclionai Gudes and the role of learning in and through the ans in the Common Core . Arts Implementation Plan embedded in the school's Plan for Student Achievement, designed for evety student to receive foLlndational instruction in all four art forms in their K-6 experience . Collaborative delivery of instruction by 1.) Elementary Arts Teachers, 2.) Classroorn Teachers, 3.) Arls Community Partners Desirable Criteria: . Purchasc of additional semester(s) of arts instruction . Matching contribution of funds for arts community parlners, materials and supplics. teacher lead stipends

(Note: The rotio of credentialed orts teocher to students in this model is in Iine wth thot of mony urban districts throughout
notion, includinq Atlonto, Boston, Dollos, Philodelphio, Pittsburg New York ond Seottle.)

the

Proposal for 50o/o Restoration of Arts Education Branch Budget: $9.3 million
(slightly more than the state's annual Arts and Music Bloc Grant currently in Tier

III)

# of

Schools Arts lllstl'uctiolr

ol'Al'ts 'l'eaclters
#

# Strlcrrts Scrr Schtrl

tl

l)e

(From 4-6 semesters, depending on enrollment)

98
Arts Focus
Schools

Average: 5 semesters Music: full year, I day per week, either Vocal or Instrumental Dance: one semester, I day per week Theatre: one semester, I day per week Visual Arts: one semester, I day per week
(Schools mqy opt to purchase additional semester(s) in any discipline)

500 students per school could receive

foundational instruction in one or two disciplines, one

day per week for a minimum of one semester Over the course of the six or seven years of the elementary grades, most students could receive foundational instruction in at least three discioli

Professional development for generalist classroom teachers

r58
Totrl
Schools

100

Total
be distributed equitably throughout the district.

will be selected by application and will

Binding Criteria:
Commitment to professional development for school faculty inthe Arts Instructional Guides and the role of learning in and through the arts in the Common Core Arts Implementation Plan embedded in the school's Plan for Student Achievement, desigrred for every student to receive foundational instruction in all four art forms in their K-6 experience Collaborative delivery of instruction by L) Elementary Arts Teachers,2.) Classroom Teachers, 3.) Arts Community Partners Desirable Criteria: Purchase of additional semester(s) of arts insffuction Contribution of funds for arts community partners, materials and supplies, teacher lead stipends

o .

o o

Proposal for 75o/o Restoration of Arts Education Branch Budget: $14 million

.
See infonnation on

.:

hoposal for

25o/o

Restoration

700 See information on

'hoosal fr25V;
Restoration

(From 4-6 semesters, depending on enrollment)

4:=?

tvtusic: full year, I day per week, either Vocal or Instrumental cnoots | Dun.., one semester, 1 day per week I Theatre: one semester, I day per week Visual Arts: one semester, I day per week
(Schools tnay op to purcha.se additional semester(s) in any displns

Average: ,-

5 semesters

500 students per school could receive

foundational instruction in one or two disciplines, one day per week for a minimum of
one semester Over the course of the six or seven years ofthe elementary gracles, most students could receive

Professional development for generalist classroom teachers

foundational instruction in at ieast three disciplines

Schools

will

be selected by application and

will be distributed equitably throughout the district.

Binding Criteria:
Commitment to professional development for school faculty in the Arls Inslruclional Guides and the role of learning in and through the arts in the Common Core Arts Implementation Plan embedded in the school's Plan for Student Achievement. designed for every student to receive foundational instruction in all four art forms in their K-6 experience . Collaborative delivery of instruction by 1.) Elementary Arts Teachers, 2.) Classroom Teachers, 3.) Arts Community Partners Desirable Criteria: . Purchase of additional semester(s) of arts instruction . Contribution of funds for afts communify partners, materials and supplies, teacher lead stipends

ATTACHMENT F March 13,2012

LOS ANGELES I.JNIFIED SCHOOL DISTRICT

Options: Food Services Program

Enry L,ewl Positiom = 8l (Cafeterl

s:t@ps

nrnber of
re

Hes) $2,153107 ad 120 Food Servbe

I/okers 103,360,000 and 4 Range Cook

sffh schoob wilbe rrrced parttim bwb ma school basb as has en the pactbe for sewral 'hbor Opimizatin"
nunr
process. Thb of POS thereby to go throrg

Unit0

297

SI7E,545.

\A/ith these cbsures thb

usirg the

chss willbeelininate Clo6e2 r\od<er III poolims ($i17213).

rcdrce the

reirig mae snrdens

at each whdorv. The nunber ofPOS open meal perird may not neet rhe standad thn proctixs rsed food servbes (a maximrm
75 studcnr per

l.

whdowomh;
100

150 students

per

mh at modemid si ad
at reguhr scramble POS).
be

125

per 30 tto

llcre wi!

saffor hbor hous

albcatcd to atterpl

miligate

tlr impact of an irsuffbbnt number of perils northe ngth oftine at meab

Princb andTeachen
at

sorc

need to rassess the importance ofstudents

to eat and ebnga cunent meal perirds

add

additkxnlperb& to mlgate the ssened of POS's and saffcorH npct tl h whbh meab are offercd and tl tpes

meab

send

For examph, box hmches only

be offered to sebcted schoob and hot meab

elsho9ln1r--{egreg-Nerrman Nutrition Center Position Closurrs

e 5 poshims

(l

Assbant Food Manager)

8,017

ilentifcd for rcductim are li

Theh elimiratim will reSie to.work more with staff. Orc Asst lvlamget's rectbn will rsuft h Productirr lvlanager spcndirg more time on

UnnC 4 UnfrS I

Prortin
Food lYarthousc Position Closurrs
38 Food Warehose

poslixs

z4mJs6

chsses that are ilentifed f rc&rtbns retah sutrrcrt personrelto ret Food Divbirrn requicments as tle ae

UnfrC

25 9 3

UnlS

UnirD

rcrnahbg h each ofthe rered

DbtRep I

Ce

nlrl Oflce Position.Closures

lose 12 CentralOffice positions

1.09s.607

Training will be reduced. Financial reportirg, metric eporting willbe slowed. Response lo requests for anayses, audit inquhes, and relaled deliverabs willbe slowed. Admin duts such as answering phone calls, ordering supplies, responding to parent correspondence, will be impacted.

5 Unit 4 Unit Dis Rep 2

D S

AALA

AND Meal Price lncrese

lncrease meal prices at elementary schools from $1.00 to $1.50 and from $1.50 to S2.00 at the secondary level. This rvill bring us closer to the

.840,000

)ossible loss ofparticalion due 1o the price of neals

USDA requbement of hving the paid meal

category having ro match the free reimbursemenl by 2015.

Incrementally by 50 cents peryear AND Brakfasl In The Classroom Breakfast in Classroom (BlC) - Requiring all
schools to move to a breakfast in the chssroom

18,069,804

Will have an impact on school schedules as schools

adjust to having breakfast after the first bell;

\o current

program or a breakfast after the frst bell (grabJrgo for secondary

-.2

)olicy exssts t( nandate a reakfast lrogram and nay reqube a rcard policy to

impact to teacher instruction as they adjust for the

schools)
$

aa'
23,069,804

first l0 minutes ofschool for breakfast and

instruction.

Netsavings

Less lncentivc Program

= $ 5.000.000 s 18,069,804

An incentive program will be provided to school sites that willbe paricipating in lhe progam. The worth 5M ofthe 23.069M savings

Note: The increase in revenue will be realized over the period of FY 13. This program required
start-up funds per school the exact amount 1o b detennined

wfh

implementation at each school.

Ne wman

Close The

Nutrition Center
and

Eliminte the Nervnsn Nutriaion Center

10.000,000

mpact to 160 Food Services employees who may

rot be absorbed in schools; labor would be

PC Rules Ed Codes

No cMcnt
requiring Food Services to continue services lhrough the

util vendor partnershs to produce and bring foods directv to schools

t,abor Codes policy exsists

'eplaced by vendors; for emergencies, NNC is the isted food dstribution location for LA County rnother facility willneed to be determined.

NNC
S

4l:f53'.{09'
Jnit C Jnit D Jnit S 22(

{.LA
Dist ReD Total Positions Slnd Total Poslions 25:

2t