I would much prefer to be able to send you an e-mail about this nice spring weather - and it is so welcome after the winter. Also, I would like to just share with you how appreciative we are of everyone's caring and professional service in these challenging times in our society - and we are. Still, I have to share this difficult fiscal information with you and with our larger community so people can understand the legislative process leading to the actual funding levels we will have to work with, and so that you are prepared for even deeper reductions as we prepare for next year.

Thus, the purpose of this e-mail is to provide an update on important state level fiscal information and its potential impact to our school district: 1) For those who may value a quick reminder of the overall state's issue, I will include basic background as to why and how this is impacting our state. 2) Mostly, though I want to share with you the possible impact to our district of the three different budgets that are now being discussed at the legislative level. 3) Lastly, we will have to identify more possible budget reductions for the 2009-2010 school year in light of this worsening state funding situation, and I will share how that will be processed.

There was likely nothing you or anyone you know did to cause the problems of the economy. It is tied to irresponsible fiscal practices of large corporations and some individuals; these are significant issues that the new federal administration is trying to address. As that gets addressed, it will have a positive impact on consumer confidence, employment, and the struggling economy; still, it will take months to recover and nobody can predict how fast or how well it will turn around for states. Having said that, we still have to deal with the consequences of the problem. The slow down of consumer spending is reducing the amount of sales tax revenue going into our state operational fund, and that is impacting the forecasts for how much money the state will have available in the next two years. In November 2008 our state was predicting a $3.3 billion shortfall. By December 2008 (when the Governor built her budget) it had worsened to just under a $6 billion shortfall, and just recently when the Senate and House developed their state budgets it is now projected to be about a $9 billion shortfall. Even with the federal stimulus funds coming to states and districts, the amount of the reductions being targeted to K-12 public schools and all areas of state funding are very significant.

In addition to everyone communicating with their legislative contacts about the importance of school funding and seeking to minimize the actual state funding reductions that get passed on to public schools, we must prepare our district to make reductions well beyond the amount of the Governor's proposal. Starting this Friday, I will be having a special meeting to review ideas that have come in from many of you as well as our Budget Advisory Committee as to how we might further reduce in preparation for the worsening state funding situation. These ideas will be researched and shared out with updates and/or additional meetings, and they will ultimately go into our four May public budget information and input meetings. These are posted on our web site. In addition to study sessions with the Board, the ideas on the expanded list will also require that we process them to even have the option if deemed necessary later for implementation. We are hopeful that the actual final legislative budget and related reductions will not be as severe as the Senate's proposal, however, not having any assurance until the Legislature is finished - we have to be prepared. No final decisions have been made; we still have to see the actual budget approved by the Legislature, and all of this is subject to final Board approval in August, 2009.

If you have questions beyond what will flow out of the process, feel free to let me know. This is a work in process and so much depends on the extent to which the final legislative budget impacts public school district. Thank you again for your understanding in this most unique and challenging fiscal time in our world.