Chief Financial Officer James Masias presented an update on state budget issues to the Board of Education on November 19. His report said the state's current budget cut plans would result in a $40 million mid-year budget reduction.

Among the budget options presented to the Board of Education (note that some will require negotiations with employee unions):

• Reallocate categorical funds.
• Food service program changes to increase revenues:
  • Multiple high school lunch periods, an increase of $1.2 million;
  • Expand breakfast program, an increase of $470,000;
  • Offer elementary lunch on minimum days, an increase of $865,000.
• Implement bell schedule changes $1 million.
• Reduce purchased services outside contracts.
• Reduce General Fund contribution to restricted maintenance.
• Continue to "right-size" central office staffing.
• Close schools with low enrollment.
• Changes to state-mandated Class Size Reduction in grades K-3.
• Increase class size in grades 4-12.
• "Right-size" teacher staffing levels.
• Reduce substitute pay.
• Identify Supplemental Employee Retirement Plan (SERP) savings.
• District-wide salary rollback.
• Eliminate elementary planning time (prep time teachers).
• Change employee health insurance benefits.
• Evaluate the following programs for savings:
  • Off-Campus Integrated Learning Experiences (OCILE), including the Palomar Outdoor School, Balboa Park and Old Town programs;
  • JROTC. See program information on San Diego High Educational Complex, Madison High School, Crawford High School;
  • Visual and Performing Arts (VAPA);
  • Counseling staffing levels;
  • Nursing;
  • Librarians;
  • Landscaping;
  • Custodial services;
  • Magnet programs.

The Board of Education took no vote on the options. Masias said the next step will be to refine the options and continue to advocate for the students with our legislators in Sacramento. Staff will provide the Board of Education with specific recommendations based on final mid-year budget cuts or other action approved by the Legislature and signed by the Governor. In addition, staff is preparing a plan for community forums on the budget, as well as Board of Education budget hearings on mid-year changes and the 2009-10 budget.

View the presentation slides 
October 2008 Budget Summary