The Carlsbad Unified School District faces a projected $11 million budget deficit for the 2012-2013 school year. The San Diego County Office of Education provided feedback that while the district can meet its obligations for 2011-2012, budget reductions will be needed in future years to address multi-year financial commitments. The district must submit a specific expenditure reduction proposal in November and budget updates in December and January as it works to address the projected deficit under the guidance of the county office. District staff will provide the school board with options for expenditure reductions and priorities to assist in developing recommendations.

1. Devin Vodicka, Ed.D.
October 12, 2011

2.  Carlsbad Unified faces projected fiscal deficit of almost $11 million in 2012-13.
 San Diego County Office of Education Feedback on 2011-12 Budget:
 Based on this analysis, we have concluded that the district will be able to meet its financial
obligations in 2011-12. However, the budget submitted shows that the district will be unable
to meet its multi-year financial commitments in subsequent fiscal years without additional
budget solutions. Per our previous recommendations, the district has adopted a resolution
that identifies the amount of budget reductions needed in future years. The district should
submit a list of approved budget reductions by the First Interim Report as well.
 The district’s budget will be reevaluated at the time of the First Interim Report to determine
if the budget should be certified as positive, qualified, or negative. The county
superintendent also has the authority to determine that a school district is “not a going
concern” at any time during the fiscal year if the district may not meet its financial
obligations [Education Code Section 42127.6(a)(1)]. Our office can take this action at any
time if substantial progress is not made towards budget reductions.
 Timeline
 November: Specific expenditure reduction proposal
 December: First Interim Report to SDCOE
 January: Governor’s Proposal for 2012-13
October 12, 2011 2

3.  Receive direction from Governing Board
regarding expenditure priorities
 Priorities will assist staff in further research,
analysis, and more specific recommendations
 Focused efforts will be required to ensure
compliance with SDCOE guidance
 Adherence to prudent planning will help
CUSD maintain autonomy in managing our
resources
October 12, 2011 3

4. a. Closing school(s)
b. Delaying Sage Creek Opening
c. Eliminating Administration/Management Positions
d. Eliminating Classified Positions
e. Eliminating Stipends
f. Increasing class size (elementary)
g. Increasing class size (middle)
h. Increasing class size (high school)
i. Reducing Athletic Expenses
j. Reducing Employee Compensation/Benefits
k. Reducing/Eliminating Contractual Services
l. Reducing/Eliminating Programs
m. Reducing/Eliminating Travel & Conference
n. Reducing Guidance Staff
o. Reducing Instructional Days
p. Reducing Site/Department Accounts
q. Reducing Special Education
r. Reducing Textbook Purchases
October 12, 2011 4

5.  Fiscal Reports
 By function
 By program
 By school site
October 12, 2011 5

6.  Discuss priorities and indicate direction to staff regarding
potential expenditure reduction areas.
 Proposed process:
 Use “Expenditure Considerations” as starting point for conversation
 Consider adding items based on Additional Resources and/or other
perspectives
 Rank each “consideration” in one of three groups:
▪ Group 1—Strong potential for expenditure reduction; further research, analysis,
and more specific recommendations should be prioritized and aggressively
pursued
▪ Group 2—Moderate potential for expenditure reduction; further research and
analysis should come after intensive efforts related to items in Group 1
▪ Group 3—Low potential for expenditure reduction; further research and analysis
should occur only if necessary due to magnitude of projected deficit
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