In an effort to maintain the District’s excellent fiscal performance, which was recognized by the recent upgrades to AA and AA1 in the District’s credit ratings by both
Standard & Poor’s (S&P)
, staff and Board have engaged stakeholders in discussions about potential strategies to address the structural deficit illustrated in the December 2017 three-year budget projections.
Superintendent Jordan and Wendy Zhang, Assistant Superintendent of Business Services, held four Budget Study/Cost Savings Stakeholders Input meetings this past fall to gather suggestions and insights from staff about how to realize cost savings in order to achieve a balanced budget in year three of the budget projections. The Budget Priorities resulting from the 2016-17 stakeholders meetings provided the framework for the cost savings discussions.
Superintendent Jordan and Cabinet staff reviewed the results of the stakeholders’ discussions and survey within the context of cost management to determine possible steps the District can take to maintain its strong fiscal standing.
It is important to note that during the great recession, while other districts chose to make deep cuts all at once, Milpitas chose to work ahead of the recession by making incremental cost savings measures and reductions. While our district is in good standing and the Governor of California has recently reported strong earnings and a positive budget for next year, the District wants to be proactive in reducing if not eliminating the structural deficit projected for Year 3 (2020-21).
During the Cost Management Study Session, Superintendent Jordan shared a summary of the strategies and their potential impact on learning outcomes for students. The Board asked the Superintendent and staff to determine how to best support student and family engagement with minimal impact to the classroom. The Superintendent will provide a plan to the Board at its next meeting on March 13.