The May 2020 Governor’s Budget revision did not bring good news to education. All California school districts must build their budgets based on the assumptions in the May Revise which means a Local Control Funding Formula (LCFF) reduction of 7.92%. Additionally, several categorical funds we receive will be reduced. We anticipate the following reductions:

• LCFF:  Reduction of $6,368,149
• ASES: An approximate 15% reduction
• Adult Ed Block Grant:  An approximate $100,000 reduction
• Career Technical Education Grant:  An approximate 50% reduction
• Ag Incentive Grant:  An approximate 50% reduction
• K - 12 Strong Workforce Grant:  An approximate 50% reduction

In addition to the need to make budget reductions, we do not know yet what school will look like in the Fall due to COVID-19 and related state and local restrictions on schools.  Because of this uncertainty, information that additional federal revenues may be allocated due to COVID-19, and the short timeline to implement the May Revise assumptions, staff is recommending the following:

• Administration and the Board utilize the two-page Strategic Plan Focus document that was developed collaboratively by stakeholders and the Board to guide budget decisions.
• In addition to the Strategic Plan Focus document, due to COVID-19 needs projected for 20/21, it is advised that the Board continue to fund the following groups of positions as a priority:  general education and special education teachers; technology support positions; positions that support health and school sanitation; positions that support social-emotional well-being.
• All positions outside of the above-listed positions, when vacated, will remain open for the 20/21 school year which will create budget savings on the natural without having to implement layoffs.  The Superintendent will review each vacated position to determine whether or not to fill the position.  There are certain positions outside of the teaching force for special education that are legally required.  These will be filled.    
• Implement the use of one-time funds in this budget item to fill the gap for 20/21.  This may require dramatic reductions for the 21/22 school year; however, with such uncertainty, administration believes it is the best course of action.  
• Implement up to $750,000 in reductions to Supplemental and Concentration grant funds through not filling open positions and reducing materials budgets and outside contractors.
• Ukiah Adult School (UAS) to reduce the budget by the required amount (approximately $100,000).  
• We will receive federal one-time funding to assist us with expenses related to the pandemic.  Detailed information regarding this funding is just being released but in general, the funding is there to support additional academic supports to try and mitigate learning loss, wrap-around services to support social-emotional well-being, and “additional supports”. 
• Do not fill open administrator positions.  The Superintendent will determine how to reconfigure administrative staff to serve the needs of schools and departments.  

All decisions need to be made by June 5 so the fiscal staff can build the July 1 Budget to bring to the Board for approval on June 18.