1. Copyright, 1996 © Dale Carnegie & Associates, Inc.Copyright, 1996 © Dale Carnegie & Associates, Inc.

2. Introduction The 2012-13 Publication Budget is required to be adopted prior to June 30, 2012 Contains levels of revenue assumptions that are subject to extreme changes The Publication budget is based on the assumption that the State revenue limit COLA for 2012-13 will be 3.24%, along with a deficit factor of 22.272%

3. Enrollment CBEDS enrollment number as of October 5, 2011 was 1,699 students, down 149 students from prior year Enrollment projections for Oct 2012 are projected to be 1,623, a decrease of 76 Enrollment projections for Oct 2013 are projected to be 1,579, a decrease of 44

4. Average Daily Attendance Our funding is not based on enrollment, but rather on the number of days that pupils come to school (average daily attendance-- ADA). We can always be funded on current or prior year ADA, whichever is greater The Publication Budget is based on 1,573 ADA, which is the P-2 ADA for 2011-12 (our guaranteed lowest amount). We are projecting P-2 ADA to decline to 1,510 in 2012-13 and 1,469 in 2013-14

5. Revenue Limit Calculation Our Base Revenue Limit per ADA for 2011-12 was $7,531 The cost of living (COLA) increase in the State budget for 2012-13 is projected to be 3.24%, for an additional increase of $244 per ADA The deficit factor has been increased from 20.602% to 22.275% This brings our Revenue Limit per ADA for 2012-13 to $6,043

6. Revenue Limit Calculation (cont’d) Also included in the Revenue Calculation is the trigger reductions if the Governor’s Nov 2012 tax initiative fails Amounts to approximately 6.8% or $528 per ADA for RBJUHSD This reduction is on-going not one-time

7. Revenue Limit Calculation (cont’d) Using 1,573 ADA and the proposed budget factors, we anticipate revenue limit sources of $8,764,365, a reduction of over $1.5m from the previous year This is our primary source of unrestricted revenue and is made up of a combination of state aid and local taxes

9. Projected Expenditures Approximately 80% of school budgets are in employee wages and benefits. With this in mind, when we develop a preliminary (Publication) budget, a substantial amount of time is spent making sure all personnel costs are estimated as close as possible The remaining expenditures for books, supplies, services and capital outlay make up the remaining 20% of the budget A 1% variance in our personnel budget amounts to approximately $131,048 A 1% variance in all other expense categories, including transfers out, amounts to approximately $31,423

10. Projected Expenditures (Cont’d) Federal Revenues decrease drastically due to loss of: Forest Reserve Education Jobs Bill Smaller Learning Communities Grant Program Improvement MAA Revenue decline

11. Projected Expenditures (Cont’d) State revenues decrease slightly due to misc grant reductions Local revenues decrease due to a decrease in Special Education funding and the loss of bus retrofit funds Step & Column costs have been included in the budget and both out years Salary reductions are projected in 2013-14 and 2014- 15 due to anticipated certificated retirements

12. Projected Expenditures (Cont’d) A 2.4% increase has been added to all salary schedules effective July 1, 2012 No one-time off the salary schedule distributions (MAA) have been budgeted in any years Five furlough days for all staff have been budgeted in 2014-15

13. Projected Expenditures (Cont’d) Materials, Supplies, Services and Operating budgets continue to be reduced The only Transfer Out from the General Fund is to the Developer Fee Fund to cover the COPS payment Reserves have decreased in 2012-13 and continue to decrease due to the projected continual decreases in enrollment projections and revenues

15. Multi-Year Projections Multi-Year Projections (MYPs) are required by AB1200 and AB2756 MYPs are projections, not forecasts - Projections are the mathematical result of today’s decisions based on a given set of assumptions -Forecasts are predictions for the future -Projections are expected to change as various factors change – they are not predictions

16. RBJUHSD Multi-Year Projection 2012-132013-142014-15 Beginning Fund Balance5,502,9354,189,9482,215,375 Revenues14,934,07714,309,98414,302,965 Expenses16,247,06416,284,55716,028,731 Net Increase/(Decrease) (1,312,987)(1,974,573)(1,725,766) Projected Ending Fund Balance4,189,9482,215,375489,609 Less - Restricted Reserves1,744,77600 Designated for Economic Uncertainties 487,412489,287481,612 Undesignated1,957,7601,726,0887,997

17. Educational Outreach Academy MYP 2012-132013-142014-15 Beginning Fund Balance85,63117,7826,696 Revenues374,190435,097 Expenses442,039446,183441,388 Net Increase/(Decrease) (67,849)(11,086)(6,291) Projected Ending Fund Balance17,7826,696405

18. Funding for Schools Despite claims of: $6 billion more for schools 16% increase for schools Schools do not get one more dollar whether the Governor’s tax initiative passes or fails! Our gain is the absence of another cut! The State has not provided a single new dollar to schools since 2007-08!

19. California Ranking

21. Governor’s Tax Initiative If passes: Funding remains flat Cash Deferrals are reduced Weighted Student Funding Formula implemented Ability to reduce school year a combined total of 15 days in 2012-13 and 2013-14 in addition to the 5 days currently allowed If fails: Trigger reductions implemented (over $800 per year) Cash Deferrals remain

22. Now What? Will Governor sign or veto the proposed State budget? Tax initiative passes or fails in Nov 2012? First Interim will be presented at the Dec 2012 Board Meeting

23. Questions?