PFT/PUSD IBPS Fiscal Information as of December 16, 2010

Dear Colleagues,

My intent is to be open, honest, and to show transparency around fiscal dollars and negotiations. Therefore, I will be communicating with you monthly as we move through this storm.

Our current fiscal reality includes both good and bad news.

The Bad News:

• Poway has reduced its budget for seven of the last nine years.
• 2008-09 PUSD had over $280 million in revenues. In 2010-11 the January Budget projected $228 million in revenues (16% reduction in two years).
• 2010 January State Budget cut PUSD another $7 million.
• 2010 May Revise resulted in an additional $2 million in cuts.
• 2010 State Budget was signed by legislators 100 days late. Our school year was well underway and we were living within our means – salary reductions, fewer teachers, fewer school days, reduced services…

The Good News:

• October 8, 2010 the “very late” State Budget was signed. The additional cuts in the May Revise were restored, resulting in an additional $8 million to PUSD (on paper only). Currently, the State Budget has a deficit of $25 billion (and growing) so this $8 million may not materialize. This money has been “set aside.”
• 2010-11 PUSD Revised Budget showed an increase of $6 million to the ending balance, due to overall fiscal savings. This money has been “set aside.”
• October 2010 PUSD received $6.2 million in JOBS money. This money has been “set aside.”

What we’re doing about the good and bad news:

Although PUSD has received more than $20 million in unexpected additional revenue, decisions on spending are “on hold” - at least until we know what happens with education funding in the 2011 State Budget. For example: We may or may not receive the $8 million in state revenues. We may or may not be cut again due to the ever increasing state deficit. We may or may not receive continued flexibility with categorical dollars/programs.  We may or may not be charged for County Mental Health services. Without a guarantee on the additional $8 million in state revenue, yearly increases in Step and Column, Health and Welfare, Utilities, and Special Education expenses alone will put us back to making cuts. Therefore, all of the additional income has been identified as “set aside” monies in the 2010-11 Revised Budget (see attached Revised Budget with highlighted line items). It is very important to all of us to be able to “show and track” this additional funding.

The PFT/PUSD IBPS negotiating team has met multiple times this year; our last meeting was December 14^th. We agreed to develop a timeline with benchmarks dates (January Budget and May Revise) and to identify agreements on how those dollars will be used, based on fiscal circumstances. We are committed to keeping you informed of that work.

Next Steps:

• January 10, 2011 – State Budget Announcement
• January 18, 2011 – School Services of CA Conference – Interpretation of the State Budget and School District Budgets (PUSD and PFT attending)
• February 3, 2011 – PFT/PUSD IBPS
• Week of February 7^th – Joint PFT/PUSD Communication

I hope this information is helpful.

Candy Smiley, President