1. Grass Valley and Nevada City School Boards Consolidation Discussion October 3, 2012

2.  SSC study calculated the change to the “new” district base revenue limit  Change was 3.64% or $465K  Additional revenue is generated to compensate for the differences in the average salaries of employees  Caution: Data is now 2 years old Overview of Base Revenue Limit Calculation

3. Certificated Salaries Grass Valley  Certificated  Single Column  18 Steps  3% Steps  187 days  Health Cap - $5,614  70.8 FTEs  42% on top step Nevada City  Certificated  Single Column  25 Steps  4% Steps  185 Days  Health Cap - $8,149  51.3 FTEs  24% on top step

4. Classified Salaries Grass Valley  Classified  10 Steps, plus longevity - 1-4%  Health Cap - $5,614  Step increases – 3% Nevada City  Classified  10 Steps, plus longevity – 2-5%  Health Cap – $7,384  Step increases – 4%

5.  Certificated defaulted to GV higher calendar days – 187 vs NC 185 days  Default was the higher daily rate or hourly rate  Difference in step increases skews schedule at the higher steps  Longevity granted at the higher NC rates  Many assumptions made about like positions  No analysis was performed on other contract language for sick, vacations, benefits Process and Assumptions

6.  No consideration was given to Superintendents or Business Managers compensation  NC classified group is affiliated with CSEA, GV only the custodial and maintenance staff is  No consideration was given to stipends, subs and other certificated costs Process and Assumptions Cont’d

7. Total Salary Increase $ 179,469 Total Statutory Benefits Increase 28,004 Total H/W Increase 257,846 Grand Total $ 465,319 All Staff Summary

8. Certificated Salary Increase $ 106,623 Certificated Statutory Costs on Increase 13,434 Certificated H&W to Nevada City's Cap 179,509 $ 299,566 Principals Salary Increase 15,491 Principals Statutory 1,952 Principals H&W to Nevada City's Cap 10,140 $ 27,583 Classified Salary Increase 57,355 Classified Statutory 12,618 Classified H&W to Nevada City's Cap 68,197 $ 138,170 Total $ 465,319 SSC Revenue Increase $ 465,822 Total by Employee Group

9.  Complexity of Preliminary Calculations  Basic Aid potential  Changing economic environment  Property tax estimates  Countywide transfer  Fair Share adjustments  Basic Aid charter supplemental  District of Choice Revenue Limit Implications

10.  ASES at GV is site specific, demographics specific to NC should not impact funding  Lottery funds will be lost for the first year, they may be trued up in year two Other Revenue Implications

11.  If it is the Board’s will, assign a Finance Committee to study the potential revenue limit and other revenue implications  Caution-what we know today WILL change tomorrow, these projections can be challenging  Many moving parts, decrease the level of certainty Next Steps?