CitySLUSD Liaison Highlights 2009 0521

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City and San Leandro Unified School District Liaison Committee May 21, 2009 Page 2 2. Budget Update • San Leandro Unified School District Superintendent Lim stated that there will be an additional shortfall of $4.5 to $5 million in the District's FY2009-10 budget. She continued to list additional one-time monies that the District will receive for FY2009-10 and also stated that the District is in a position to say that it will get through FY2009-10 deficit; however, FY 2010-11 will be difficult. She also stated that the Board did eliminate all categorical counselors and class sizes will be 24:1. Councilmember Reed asked if the District anticipates any layoffs. Superintendent Lim stated that there will be no layoffs in FY2009-10; however, there may possibly be major District layoffs in FY2010-11. Board Member Mack-Rose stated that the budget cuts will have a huge impact on the students. • City of San Leandro City Manager Hollister handed out a slide presentation (attached) that was presented to the City Council on May 18 explaining how the City's $4 million deficit was reduced by taking $1 million from the City's insurance reserves. He also stated that $400,000 was also taken from the insurance reserves which will partially restore library programs and the branch libraries, and the City's community assistance program, which goes for social service agencies. He explained that the City has atwo-year commitment to the service agencies, so it was important to fund them for the second year. He next covered the City's operating expenses, revenues and reserves. The City Council earmarked $5 million in reserves for emergencies, which will remain untouched. He stated that the City's "Economic Uncertainties" reserves are severely depleted. The Fire Department also made reductions - fire equipment will be leased rather than purchased. He discussed declining sales and property taxes. He explained City staff reductions, with no full-time employee layoffs and the Golden Handshake option for employees that qualify. Board Chair Katz-Lacabe inquired if the eliminated City positions were held by City residents. City Manager Hollister explained that the reduced positions were a mix of both City residents and non-residents, and that some of the positions are already vacant at this time. City Manager Hollister stated that if the budget passes on June 1, there will be impacts on the District. The City is hoping to receive funding from the federal government for the COPS program to possibly restore two Security Resource Officer (SRO) positions. He concluded that the City will remain adaptable during the current dire economic times, and even though there will be possible additional revenue, it will be difficult to make up the FY2009-10 cuts, which are being made.