1. Centinela Valley Union High School District is facing a severe budget shortfall resulting from the State budget crisis and a number of other circumstances. This “perfect storm” of circumstances will require swift and extensive action in order to prevent a return to the financial uncertainty the District faced just a few years ago. California/CVUHSD Education Funding Crisis The Perfect Storm TOP FOUR LIST  Continued Increases in State Deficit Factor  Rollback of Meals for Needy Money  Declining Enrollment  Uncertainty of Proposed Ballot Measure

2. California/CVUHSD Education Funding Crisis The Deficit Factor Although the Governor’s Office announced that there was no reduction to K12 budgets, in reality, the State’s application of an ever larger deficit factor does result in a decrease in available funding.  In essence, the State acknowledges that they should pay Districts a certain amount per student in attendance (ADA)...  but then admits that they have only enough cash on hand to pay a reduced amount.  The difference (in percentage points) is the deficit factor. For the 2011- 2012 school year, the State will apply a 19.608% deficit factor...  so we get only 80 cents on the dollar... $5981 instead of $7440.  CVUHSD will lose almost $1459 per ADA.  Assuming no other issues, such as declining enrollment, the deficit factor alone translates to a loss of almost $8.8 million.

3. California/CVUHSD Education Funding Crisis The Deficit Factor $8,800,000

4. California/CVUHSD Education Funding Crisis Meals for Needy Money With the passage of California Assembly Bill 851, CVUHSD took a severe financial hit. This bill established formulas that tie the meals for needy money to the funding and enrollment in the 2007-2008 school year. These formulas essentially erase all financial gains related to increases in meal participation since 2007. $4,864,000

5. California/CVUHSD Education Funding Crisis Declining Enrollment $1,663,000

6. California/CVUHSD Education Funding Crisis Ballot Measure  The Governor’s proposed budget, as it looks now, is contingent upon voters approving a ballot measure that would extend temporary tax increases for five more years.  In order to avoid more cuts, the Legislature must place the measure on the ballot with a 2/3 vote, and the voting public must approve the tax increase.  If the measure does not get on the ballot, or if the voters do not approve the measure, there will be an additional cut of $330 per ADA. $1,990,000

7. California/CVUHSD Education Funding Crisis Total Revenue Reductions 2011-2012

8. California/CVUHSD Education Funding Crisis Total Expenses (in Millions) 2011-2012

9. California/CVUHSD Education Funding Crisis Multi-Year Ending Fund Balance Projection Scenarios