I want to begin by thanking everyone for your patience, professionalism, and continued caring this year. In addition to life, work, and various weather-related challenges, there have been more things to deal with for all of us at home and at work with the significant fiscal issues facing us and our world. The other day as I was being interviewed by a reporter about this unprecedented fiscal situation for public schools, she mused what, if anything, was positive. Perhaps she was just trying to make light of the situation, still, I took the question to heart and with pride shared with her the many stories of courage and compassion that are real and happening with our staff and persons in our families and community. We are many people who did not create this, but we are pulling together, working, and prepared to "rally" as best we can to keep doing this important work for student learning. While it seems that every parent, staff, and community meeting I have done this year has become one mostly about the state and school funding crisis, there has been in each a deep sense of understanding about the nature of this issue, and a respect and appreciation for the difficult process of determining how best to respond. Most all have their "interest" for which they give voice and advocacy, yet continue to realize that in the end the overall budget plan for 2009-2010 needs to work on many levels. It will be difficult. We won't have the resources we want to do the work. The fiscal problem could last for more than one year depending on state revenue and next year's supplemental budget. Still, we will survive this and we will focus to the best of our ability on our reason for being here, and that is student learning. We will keep working together as this is the source of our success when times are good and key to our survival when times are challenging.

Here now is the latest state and district fiscal information. We have taken the best information we can secure from the recent state budget and developed the impact to our district. It is reflected in detail on the first of the two attachments. The bottom line for next year, is after closing the two elementary schools and all other planning considerations, we have a targeted amount for our reduction of $10,081,773. If you have specific questions about any items on that attachment, feel free to contact either Marla Miller or Bill McKeighen in our Business and Operations Department. There are a couple concepts to note: 1) in addition to the reduction of I-728 funding for next year, it is further reduced for the 2010-2011 school year and we have to account for that additional loss of revenue as well, and 2) the rules for the use of both the Title 1 and IDEA federal stimulus funds are showing less, not more flexibility. While we will be able to use these funds in those respective categories, it does not appear that the federal rules will allow these to be used to help much (if any) with the general fund challenge.

The second attachment is the "Reduced Educational Plan" (REP), which had its first reading by the Board of Directors on April 21 and will have its second reading on May 5. The total of the items on the REP is $11,719,076. We have spent a great deal of time researching the items on this list and while there will be a little more detail available in some areas by the time we begin the May public input sessions, the basic concepts and amounts are accurate. Any questions about the items on the REP are best addressed to the administrators who oversee those respective areas. I added the contact names on the REP by each section for your convenience.