1. Long Beach Unified School District Budget Update February 6, 2012

2. 2 Governor’s Proposal – The Good News California Economy Shows Signs of Recovery More Flexibility Options to Local Schools Possibility of Less Cuts to K-12 Education than Rest of State Budget

3. 3 Governor’s Proposal – The Bad News Still More Cuts to Schools, Even if November Initiative Passes Cash Flow Continues to be a Problem Possibility of Steep Cuts to K-12 Education

4. 4 Governor’s Proposal - COLA No funded COLA –COLA was budgeted at 3.1% –Results in $12.8M reduction in budgeted revenue for 2012-13

5. 5 Governor’s Proposal - Transportation Elimination of Transportation Funding –50% of transportation funds ($3.3M) were eliminated in 2011- 12 “trigger” cuts. SB81 may redirect cut to revenue limits. –Remainder of transportation funds eliminated in 2012-13.

6. 6 Governor’s Proposal – T.K. Funding for Transitional Kindergarten eliminated (Dept of Finance interpretation of Governor’s Proposal) –Still moves the eligibility date for Kindergarten to November 1. –Saves the state $223M, since 40,000 fewer students will enter Kindergarten in 2012-13

7. 7 Governor’s Proposal – Funding Model Weighted funding model –Provides more funding for districts with higher proportion of EL students and economically disadvantaged students. –Combines revenue limit and most categoricals into one funding source. –To be phased in over a 5-year period.

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9. 9 Governor’s Proposal – Mandates Significant Mandate Reform –Eliminates about half of current mandates. –Remaining mandates would be optional, but funding provided on a block grant basis if districts comply.

10. 10 Governor’s Proposal – Initiative Education is hit hard if November initiative Fails –Reduction in revenue limit of approx $370/ADA (about $30M to LBUSD). –Equates to reduction of 3 weeks of school.

11. 11 Fiscal Stabilization Plan Required

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13. 13 $108.4 Stimulus Funds Received in Last 4 Years

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16. 16 $31.7 $31.6 $28.2 $16.9

17. 17 Cash Flow - Deferrals State continues to defer a significant portion of our apportionment Will require TRAN to meet our cash flow needs late in this fiscal year

18. 18 JulyAugSeptOctNovDecJanFebMarAprilMayJuneJulyAugSept OWED 5.0% 9.0% PAID DEFERRED DEFERRAL PAID Deferrals Current Fiscal Year Following Fiscal Year

19. 19 JulyAugSeptOctNovDecJanFebMarAprilMayJuneJulyAugSept OWED 5.0% 9.0% PAID 9.0% 0.5%1.1%1.5% DEFERRED 5.0% 9.0%8.5%9.0%7.9%7.5%9.0% DEFERRAL PAID 2.8%2.2%3.5%8.5% 5.0%5.5% 9.0%1.8%6.1% 3.3%4.2% 9.0% Deferrals Current Fiscal Year 38.4% of State Payments are Deferred Until the Following Fiscal Year

20. 20 JulyAugSeptOctNovDecJanFebMarAprilMayJuneJulyAugSept OWED 5.0% 9.0% PAID 9.0% 0.5%1.1%1.5% DEFERRED 5.0% 9.0%8.5%9.0%7.9%7.5%9.0% DEFERRAL PAID 2.8%2.2%3.5%8.5% 5.0%5.5% 9.0%1.8%6.1% 3.3%4.2% 9.0% Deferrals Current Fiscal Year 38.4% of State Payments are Deferred Until the Following Fiscal Year

21. 21 OTHER FUNDS Head Start CDC

22. 22 MAJOR BUDGET ISSUES Triggers seem to be a “new way of doing business” with State Budget End of One-time Funding Structural Deficit Remains