Agenda - 04-27-2010 - Attachment 1

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$50,000 for Carrboro High school). Another $40,000 will be allocated to Phoenix Academy • High School for expansion of hours and/or services. Potential Reductions or Savings We gave the entire district staff an opportunity to suggest areas for reducing our budget. Their suggestions were shared with the Board of Education at its annual planning conference in February. We recommend not increasing the utility line items, thereby saving $153,009. The utility lines have been slightly under-spent in recent years and we are taking energy conservation measures that are intended to allow us to hold the line on utility expenses. In addition, as part of our budget review process and knowing that reductions were inevitable, the administration identified potential central office savings of $316,914. A detailed accounting of these reductions has been shared with the Board. Budget Uncertainties It's still very early in the budget process. This budget that I'm recommending to the Board of Education is a "best case scenario." The state is experiencing a shortfall in revenues for the 2009-10 fiscal year; therefore, it's quite possible that the state budget for the second year of the biennium will be reduced further. Recently, superintendents were advised to plan for an additional 3 percent reduction in our state allocations, which would translate into an additional $1.7 million reduction in our state budget. Informall we have heard from the Count Manager and County Commissioners that we • y, Y should anticipate receiving approximately the same county appropriation next year that we received this year. This budget that we are submitting to the Manager is based upon a request to increase the per-pupil funding by $62 per student, or a 2% increase, and funding for the 94 additional students whom we are expected to receive. Last year, per-pupil funding was decreased by $144; therefore, this increase would still leave us well short of funding levels in 2008-09. Below we have indicated the financial repercussions of receiving less funding than requested: If the per-pupil appropriation is not increased, we will need to make an additional $732,840 in reductions. If we receive the same dollar amount as last year from the county appropriation, we will need to make an additional $1,023,864 in reductions. Although we're advocating fora "best case" scenario budget, the worst case budget would require further reductions amounting to almost $3.4 million: Increase in state discretionary reductions $666,183 3% overall reduction in state funding 1,680,000 Same dollar allocation from the County 1,023,864 TOTAL $3,370,047 • 6