Monday, March 14, 2011

MDUSD Second Interim Budget Update

Mt. Diablo USD News Update
Where Kids Come First
March 11, 2010

Second Interim Budget Update

The Second Interim Budget must be adopted by a school Board by March 15 and then must be provided to the County Office of Education for its review and approval of assumptions.  In general, the purpose of the Second Interim Budget is to:
  • Verify the District is on track to meet the Average Daily Attendance (ADA) assumptions that were built into the original budget;
  • Ensure that cost assumptions (i.e. fuel, electricity, health benefit, etc.) are on track with actual increases;
  • Address any mid-year cuts to funding;
  • Begin to incorporate the Governor’s January Budget proposal assumptions into the multiple year projections and demonstrate districts will have a positive ending balance three years out.

This year’s Second Interim Budget is particularly challenging because all districts in the County have been directed to assume the Governor’s Budget proposal does not move forward and we receive a minimum reduction of $350 per pupil.  However, there have been estimates that districts could expect cuts up to $780 per pupil.

In March 2010, the Board directed staff to negotiate with our various bargaining units: a cap on health benefits; prorated health benefit contributions; and furlough days.  Without these negotiated reductions and with the $350 per pupil reduction, the District will have a negative ending balance at the end of the2012-13 school year of approximately $27 million.  With a health benefit cap, proration of health benefit contributions, and furlough days of 3-7-7 (three days this year and seven the next two years) included in the Second Interim, we will have a negative ending balance of approximately $4 million at the end of the 2012-13 school year.  Therefore, in order to certify “positive” for the Second Interim Budget we would need to only identify approximately $4 million in additional reductions. 

Given the current uncertainty around the State budget, staff recommends that the Board approve the following reductions, and submit the entire reduction list (which can be found at ) with the Second Interim Budget as possible future reductions that may need to be made if the Governor’s Budget proposal is not implemented.

  1. Sweep all of the following Tier III flexibility categorical carryover budgets:  CAHSEE Intervention, Instructional Materials Realignment, SB 472 Teacher Professional Development, Targeted Instructional Improvement Block funds, one-time Adult Education funds, freeze spending and transfer remaining Tier III flexibility carryover accounts.  This will amount to $3,380,598 in one time reductions.
  2. Sweep all the remaining Tier III flexibility funding for Gifted and Talented Education programs.  This will allow us to leave the School Library Improvement Block Grant (SLIBG) funds that each site receives intact.  The SLIBG comprises the site discretionary budgets and provide schools with the greatest flexibility in expenditures.  Sweeping the GATE funds would amount to an annual savings of $221,272.
  3. Reduce funding for Speech Contracts by $600,000.  This savings has been created because we have hired our own Speech Therapists instead of having to contract out with private providers.  This will be an on-going savings.
  4. Reduce funding for Occupational Therapy contracts by $52,560 due to the decreased need in services.

The savings from the above-identified list will allow the District to have a positive ending fund balance at the end of the 2012-13 school year and certify positive.  We will need to closely monitor the State budget process.  If the Governor’s request for a June ballot does not come to fruition, we will need to identify other items on the list for future implementation.  Also, because we have identified $3,380,598 in one-time reductions in order to create a balanced Second Interim Budget, we will need to identify on-going reductions in the 2013-14 school year to be included in the budget the Board will adopt in June for the 2011-12 school year.

MDUSDParents Note:
There is a Budget Advisory Committee meeting taking place on Thursday, March 17th at 5pm in the Dent Center Board Room.  There are appointed members of this committee, but as far as I know , all district business is open to the public.  Great opportunity to hear details of this latest budget update.


  1. What happened to Gary's mandates last Tuesday night of (1) immediately freeze all overnight travel and airplane trips, whether categorical or general fund money is used, and (2) strictly enforce prior policy of no off campus meetings during school hours for site administrators.
    Doctor J

  2. Dr. J,

    Eberhardt doesn't have the power to freeze anything or change meeting schedules. No board member does. The board would have to vote to do so and as was stated clearly by Harrington, that action didn't occur. Eberhardt simply asked the superintendent to place the items on the list so that the board could receive additional information. Once they have the information they can make an educated decision at a later date. If they would have acted on those items that Eberhardt brought up at the last meeting, items which were not on the agenda, that would have been a clear violation of the brown act.

    You sure do love to get people riled up with all of your misinformation, don't you. What service do you provide to our children with all of your misinformation and vitriol? You are very bitter.

    Poseidon, the one and only

  3. @Poseidon, then why weren't they put on the list of cuts as you say they should have been ? So the District will continue to send people on overnight trips and airplane rides while they are broke ? So the policy of a couple of years ago will of no off campus meetings for site administrators will continue to be ignored ?
    BTW, I thought the Poseidon sunk. :-)
    Doctor J

  4. Also, didn't Gary ask for a full accounting of SASS costs for possible cuts ?
    Doctor J

  5. Theresa Harrington reported "Trustees suggested budget cuts that included trimming district administration, reducing student testing, selling property, closing more campuses, freezing overnight travel and exploring electronic textbooks." These cuts could save teachers, librarians, custodians and secretaries who are important for students. Remember "Kids come first"? These are lean times, the bottom of the barrel, and any overnight travel is absurd. We would like to hear more about the Trustees cost-cutting ideas!

  6. In looking at the agenda for tomorrow night, it appears the district will be paying $40,000 for fact-finding with CSEA and Local 1. Is this correct?

  7. MDUSD..."where children come first" --unless the children live in any neighborhood North of Willow Pass.

    The Board acts on school closures solely based on some conjecture from the Superintendent, but the Superintendent ignores what the Board asks for--is that how it goes?

  8. So, they'll close schools, fire teachers, cancel programs. Ah, but with out as much as a whimper, they (except Cheryl-thank you) approve "change orders" to give Sun Power well over an "extra MILLION dollars" before the sun even comes up on the solar project! Un-effing-believable!

  9. G, you should know this. The change order has to do with solar and the Measure C Bond we passed. Measure C funds can only be used on facilities, they can not be used in classrooms, on programs or on teachers salaries. Don't we wish these funds could be used to keep all schools open. However, I think more schools should be closed, we just can't afford to keep them all open. We are not alone in this, many districts in California are consolidating schools. It makes sense and as a State we went through this when Prop 13 passed in the late seventies. All the schools were closed in an area of Walnut Creek (Tice Valley Elementary, Parkmead Intermediate and Del Valle High School).

  10. G,
    While everything Anon 7:49 says is true I would like to add the following:

    Measure C Funds are free money!

    Measure C Funds don't have any debt service!

    If you use Measure C money you can provide a financial analysis that uses thrity years worth of projections but never address the short term savings or the full accounting of costs!

    This issue is long over and the taxpayer lost. I do not believe our kids will win but only time will tell...
    It should have been a parcel tax.

  11. Thanks Anon @ 9:16: Yes. I understand sarcasm. ;) Over $5million of Measure C was spent at Holbrook in the last few years! Now, it will be taken from the neighborhood children and given to the "Necessary Schools" or some such additional shuffle of yet more kids. No money saved from either bucket, but more money spent from both buckets, and for just two reasons----stubbornness and unwillingness to admit a mistake!