1. Mt. Diablo Unified School District First Interim Report 2004-05

2. REVENUE Total Revenue 246,961,079249,666,571253,357,679 EXPENDITURES Total Expenditures 258,530,977250,318,307254,129,344 Revenue/Expenditure Difference (11,569,898)* (651,736) (771,665) *Actual revenue/expenditure difference is ($3,049,233) after excluding one-time expenditures funded by beginning balance 2004-052005-062006-07 Beginning Balance$ 19,190,623$ 7,620,725$ 6,968,990 Mt. Diablo Unified School District Multi-Year Revenue/Expenditure Budget Projections 2004-05 First Interim Report

3. Revenue/Expenditure Difference(11,569,898) (651,736) (771,665) Ending Balance 7,620,725 6,968,990 6,197,325 Reserved for revolving cash/stores 1,050,000 1,050,000 1,050,000 Reserved for economic uncertainties (2%) 5,170,620 5,170,620 5,170,620 Designated lottery funds (with cap at $105) 199,212 388,427 568,142 Designated one-time money 0 0 0 Unrestricted/Undesignated Ending Balance 1,200,893* 359,943 (591,437) 2004-052005-062006-07 Mt. Diablo Unified School District Multi-Year Revenue/Expenditure Budget Projections 2004-05 First Interim Report *reduced by approximately $2.8 million to reflect the carryover of school site, department, and other budgets from fiscal year 2003-04.

4. Mt. Diablo Unified School District 2004-05 First Interim Report

7. Why? Three factors...

8. Mt. Diablo Unified School District 2004-05 First Interim Report 1) Deficit spending of $3,049,233 in the current fiscal year

9. Mt. Diablo Unified School District 2004-05 First Interim Report 2) Declining Student Attendance 309 fewer students equals $1,485,672* in lost revenue *Based on fiscal year 2004-05 revenue which was funded at $4,808 per student attendance (ADA).

10. Mt. Diablo Unified School District 2004-05 First Interim Report

11. 3) States challenge is to correct deficit spending; otherwise, the districts revenue will continue to be underfunded

12. Mt. Diablo Unified School District 2004-05 First Interim Report As noted in a November 17, 2004 article by the states Legislative Analyst, Elizabeth Hill: [the state] still has a lot of hard work to do [to reduce its spending and/or raise taxes]...we really havent addressed this large structural imbalance [of deficit spending].

13. A full copy of the detailed First Interim Report is available upon request

14. or visit our web site: www.mdusd.k12.ca.us/fiscal

15. Mt. Diablo Unified School District First Interim Report 2004-05