FISCAL YEAR 2012 – st Interim Report December 19th, 2012

THE ECONOMY Job Growth and Economic Confidence on the Rise Fiscal Cliff for Economy is a Concern Housing Market Gaining Ground Federal Monetary Policy Remains Aggressive

CALIFORNIA’s OUTLOOK Job Growth is on the Rise –Unemployment still High –Long-Term Unemployment Very High Retail Sales are Increasing –Prices Outpace Disposable Income –Savings Rate Declines Credit Still Tight / Loan Balances Decreasing Foreclosure on the Rise Again Sales Tax Increase

SKUSD Budgetary Goals Supportive of a Educational Services Fiscally Responsible –Conservative but Realistic Approach –Mindful Economic Trends –Use Historical Analysis –Flexible Collaborative Business Planning

SKUSD REVENUE 84% of Funds Come from Revenue Limit Allocation

Base Revenue Limit (BRL)

Historical Deficit Factor

Average Daily Attendance (ADA)

BUILDING OUR BUDGETS Revenue Assumptions –Cost of Living (COLA) 3.24%, 0.00%, 2.00% –ADA Decline but Stabilizing –Slight Decline in Grants and Categorical –Deficit Adjustment Increased by 1.7%, then stable –Prop 30 passed

Mid -Year Trigger If the November tax bill does not pass our BRL will be reduced by $457 per ADA. $ x 2873 ADA = $1,312, REDUCTION

Revenue Budget Calculations 2011/122012/13 COLA2.23%3.24% ~Average COLA2.24%3.10% Base Revenue Limit $ 6, $ 6, COLA Equalization - - Total BRL $ 6, $ 6, Adjustment Other98.16 Total Adj. BRL $ 6, Deficit Deficited BRL $ 5, $ 5, Growth/Decline ADA (152.29) (132.00) Revenue Limit ADA 3, , Revenue Limit $ 15,615,780 $ 15,303,787 Funded ADA x Deficited BRL Trigger $457 per ADA - 1,312, Revenue Limit Allocation $ 15,615,780 $ 13,990,826

SKUSD EXPENSES 88% of Expense Budget is Compensation

FY Revenue Limit Projections

FY P&L

RESERVE PROJECTIONS

Current Trends