1. Manteca Unified School District Second Interim Report Jan. 31, 2008 March 11, 2008

2. CBEDS –Slight Decline of 96 Students Revenues –Up slightly.95% new grants Expenditures –Up by $24 million for new grants and budgeting carry over funds Governor’s Budget Cash Flow Projections Outline

3. CBEDS Enrollment 22,448 ADA Page 9

4. Revenues Total Revenues $177,530,986 Page 24

5. EXPENDITURES Total Expenditures $197,237,202 Page 33

6. Governor’s Budget Governor’s Proposed 4.94% COLA –State Revenues off by $1.6 billion more than Jan. estimates –Budget gap now $16 billion and growing? –Governor’s Proposal 10% across the board cuts in State Budget including education –Current Year Prop 98 Reduction by $400 Million –Deferred July Apportionment until Sept. (cash flow issue) for Education –$1 funding of Mandates

7. Legislative Analyst View 5.43% COLA Lower 2007-2008 Funding to Prop 98 guarantee by $1.5 billion and at least $1 billion Revise Funding for Education –K-12 Base Grants $34.8 billion K-3 CSR & 9 th CSR and 6 other Revenue Limit programs –Special Ed Grant $3.1 billion consolidates 6 special ed programs with SELPA funding –Opportunity to Learn Grant $3 billion consolidates 6 programs TIIG, EIA, SIP, 7-12 Counseling, School Safety and Pupil Retention

8. Legislative Analyst View Revise Funding for Education continued… –School Improvement Grant $1.2 billion consolidates 7 grants including School Library Improvement, Arts, Music and Education Technology, Professional Development LAO also proposes fully funding Mandates

9. Summary COLA 5.43% with a deficit of 7.48% –Resulting in a lower funded amount than 2007-2008 for 2008-2009 Education Programs Reduced programs – some with no COLA some completely eliminated Possible Prop 98 Suspension Fight over Consolidation of Grants Use of Prop 58 to Balance the Budget –Simple majority needed to adopt a budget

10. CASH FLOW Page 35

11. Budget Projections Page 37