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The Board's requested budget includes mandated cost increases and continuation <br /> expenses for medical and retirement insurance premiums totaling $547,000. It also <br /> includes $55,740 to fund school supplies for the additional students and provide <br /> transportation for the five additional days of school mandated by state law. In addition, a <br /> total of$1,904,935 in expansion requests has been included. The majority of the <br /> expansion budget is to provide a$500 one-time bonus for all district staff. District <br /> employees are facing the fourth consecutive year without a legislated increase from the <br /> State. <br /> Our employees have not had a wage increase since the 2008-09 school year. In 2008-09 <br /> all employees were furloughed a total of 10 hours, which resulted in a pay reduction for <br /> that year. Employees' salaries have been negatively impacted by a 3.5% inflation growth <br /> for the past three years. Additionally, the out-of-pocket cost increases for employee <br /> medical benefits have further reduced net pay. Currently, employees with the 80/20 <br /> medical insurance plan must pay $22.76 per month or the reduced coverage plan, 70/30, <br /> is available at no cost. The deductibles for 80/20 insurance have increased from $300 to <br /> $700 for individuals and from $900 to $2,100 for families since 2008-09. Co-pays have <br /> also increased by $10 per visit. Monthly premiums for family coverage have increased <br /> from $489.44 to $666.18 or an additional $2,120.88 per year since 2008-09. <br /> Funding is also requested to provide the necessary resources to accommodate student <br /> enrollment growth. These include funding to support one additional system level class <br /> for Exceptional Children as a result of growth, funding to provide the staff and resources <br /> necessary to open Elementary#11 (again growth related), funding to help support <br /> Phoenix Academy safety and security needs, and funding to assist the Blue Ribbon <br /> Mentor Advocate Program retain services that may potentially have reductions in grant <br /> funding. In addition, a small amount of additional professional development funds are <br /> requested to help meet our priorities. Over the next month, our professional development <br /> plan will be fine tuned and finalized. <br /> Last year the Board approved a$3,652,913 fund balance appropriation to balance the <br /> budget. The Board spent its allocation of EduJobs Federal funds during the 2010-11 <br /> school year and, intentionally increased Local fund balance to be used to bridge the <br /> budget shortfall. The Board has committed to using up to the same amount for 2012-13, <br /> but we know that this is not sustainable. The Board will use the one-time bonus funding <br /> in subsequent years to reduce the fund balance appropriation, and will still need to <br /> identify additional budget reductions to balance its budget. <br /> Depending on our actual state enrollment projection,the County approved per pupil <br /> budget, as well as any state budget decisions,the actual amount of fund balance allocated <br /> for 2012-13 may need to be revisited. <br /> State and Federal Budgets <br /> The Board has received a 2012-13 State budget planning allotment in the amount of <br /> $61,871,240 which does not reflect the reductions that will be taken. At this point in <br /> 2 <br />