1. 1 West Contra Costa Unified School District May 28, 2014 2014-15 Governor’s May Revision

2. 2 May Revision State Revenues are positive –Prop 30 –Positive economic growth January 2014 revenue proposals for schools – no change for the May Revision Local Control Funding Formula program moves forward as planned

3. May Revision Revenue volatility remains a concern due to the temporary nature of Prop 30 –Passed in 2012 –The.25% sales tax expires in 2016 –The personal income tax component expires in 2018 2019-20 the State will no longer be collecting the $7 billion in Prop 30 funds Historically, the economy has not been stable over that number of years 3

4. May Revision Budget Conference Committee Considering…. –State Teacher Retiree System Rates –Career Technical Education Fund –Common Core Funding –Transitional Kindergarten These debates will likely result in action by June 15 th 4

5. May Revision Biggest issue – State Teacher Retirement System (STRS) –STRS has a large unfunded liability –May Revise includes implementation of the STRS funding plan in 2014-15 – a year earlier than previously proposed –The new implementation plan in the May revision funds the STRS over 7 years, January proposal was 30 years 5

6. STRS Multi Year Rates 6

7. May Revision CalPERS contribution rates for the retiree program also scheduled to increase 7

8. May Revise Retirement System Increases 8 These rate increases will consume LCFF: 14% of new base funding in 2014-15 16% of new base funding in 2015-16 34% of new base funding in 2016-17 Cost Increase for Employer Contribution 2014-152015-162016-172017-182018-19 STRS $ 1,481,191 $ 1,895,925 PERS $ 225,420 $ 422,789 $ 1,223,998 $ 815,999 Increase over prior year $ 1,706,611 $ 2,318,714 $ 3,119,923 $ 2,711,924 Cumulative Increase $ 4,025,325 $ 7,145,248 $ 9,857,171 $ 12,569,095 These estimates do not reflect staffing or step and column adjustments

9. May Revise Legislature is putting forward an alternative proposal –Would lessen the cost slightly in 2014-15 –The concept of funding the retirement liability remains in place Rate increases will be reflected in the Multi Year Projection for the budget 9

10. 10 Next Steps May Revision of Governors Budget May 28, 2014 Board Meeting Preliminary Budget and Public Hearing June 11, 2014 Board Meeting Budget Adoption June 25, 2014 Board Meeting Financial reports available on the web http://www.wccusd.net/