San Gabriel Unified School District First Interim Financial Report As of October 31, 2011

Current (2011-12) and Subsequent (2012-13 and 2013-14) Year Assumptions Revenue Assumptions: ▶ Actual ADA 5,286.61for 2011-12 5,256.61 for 2012-13 5,226.61 for 2013-14 ▶ 0.00% Net Funded COLA for 2011-12 3.10% Net Funded COLA for 2012-13 including categorical programs 2.80% Net Funded COLA for 2013-14 including categorical programs ▶ The revenue limit deficit is 19.75 percent for 2011-12, and is projected to remain the same for both 2012-13 and 2013-14

Revenue Assumptions (Continued) ▶ Revenue Limit per Student (Funded) $6,554.65 2011-12 $6,758.33 2012-13 $6,947.96 2013-14 ▶ Per ADA Lottery Allocation $140.00 for 2011-12; $128.75 for 2012-13; and $128.75 for 2013-14 ▶ Interest Estimated at 3.50% for 2011-12; 4.00% for 2012-13; 4.10% for 2013-14 for 10-Year Treasuries

Revenue Assumptions (Continued) 2011-2012 Cash Deferrals Timeline: July 2011 to September 2011 (56%) July 2011 to January 2012 (44%) August 2011 to January 2012 (100%) October 2011 to January 2012 (100%) February 2012 to July 2012 (94%) March 2012 to April 29, 2012 (39%) March 2012 to August 2012 (61%) April 2012 to July 2012 (20%) April 2012 to August 2012 (68%) May 2012 to July 2012 (37%) May 2012 to August 2012 (47%)

Revenue Assumptions - Continued ▶ Class Size Reduction Flexibility Penalties with higher class sizes are utilized for CSR in 20:1 Option 1 for Grades K-3 Districtwide for 2010-11 and 2011-12. Flexibility goes away in 2013-14. ▶ Categorical Programs Federal: 2011-12, 2012-13, 2013-14; Based on 2011-12 entitlement and carry-over from prior year (2010-11) State: 2011-12, 2012-13, 2013-14; Based on 2011-12 entitlement and carry-over from prior year (2010-11) Local: Based on 2010-11 Unaudited Actuals and current year awards

Revenues 2011-12 2011-12 Board Approved Budget First Interim Change Revenue Limit 28,203,143 28,237,559 34,416 Federal Revenue 3,843,971 5,047,142 1,203,171 State Revenue 5,820,339 5,932,727 112,388 Local Revenue 3,795,753 4,009,779 214,026 Total 41,663,206 43,227,207 1,564,001

Expenditures 2011-12 Combined Restricted/Unrestricted Board Approved Budget First Interim Change Certificated Salaries 18,173,668 18,871,069 697,401 Classified Salaries 5,744,933 6,017,647 272,714 Employee Benefits 8,301,664 8,306,604 4,940 Books & Supplies 2,152,765 2,891,567 738,802 Services & Other Operating 5,649,167 6,419,597 770,430 Capital Outlay 15,000 25,000 10,000 Other Outgo 804,694 Direct Support/ Indirect Costs (125,000) (100,000) TOTAL 40,716,891 43,236,178 2,519,287

General Fund Summary 2011-12 Board Approved Budget First Interim Total Revenues 41,663,206 43,227,207 Total Expenditures 40,716,891 43,236,178 Excess (Deficiency) of Revenues over Expenditures 946,315 (8,971) Beginning Balance 3,267,871 6,775,365 Ending Balance 4,214,186 6,766,394

Ending Balance Component 2011-12 Board Approved Budget 2011-12 First Interim Nonspendable Amounts: Revolving Cash 30,000 Stores 111,147 86,746 Legally Restricted Balance 622,913 1,511,938 Assigned Amounts: LEA Medical 300,000 400,000 Instructional Materials 593,754 BTSA 95,436 Reserve for Revenue Limit Reduction 1,800,000 Potential Trigger Funding Reduction 1,463,529 Reserve for Economic Uncertainties 1,221,507 1,297,085 Unassigned/Unappropriated 128,619 1,287,906 TOTAL 4,214,186 6,766,394

Subsequent Year Projections Expense Assumptions 2012-13 and 2013-14 ▶Certificated FTE Changes: Staffing levels same as 2011-12 (with projected declining enrollment of 30 per year) Loss of one-time Education Jobs Fund money ▶Employee Compensation Step & Column increases included for 2012-13 and 2013-14 Health & Welfare benefits: 2.5% projected increase for both 2012-13 and 2013-14

General Fund Summary Projection (Combined – Restricted/Unrestricted) 2011-12 Board Approved Budget First Interim 2012-13 Projected Budget 2013-14 Total Revenues 41,663,206 43,227,207 41,632,898 42,270,100 Total Expenditures 40,716,891 43,236,178 41,891,458 42,305,616 Excess (Deficiency) of Revenues over Expenditures 946,315 (8,971) (258,560) (35,515) Beginning Balance 3,267,871 6,775,365 6,766,394 6,507,829 Ending Balance 4,214,186 6,472,314

Ending Balance Component 2011-12 Board Approved Budget 2011-12 First Interim 2012-13 Projected Budget 2013-14 Reserved Amounts: Revolving Cash 30,000 Stores 111,147 86,746 Legally Restricted Balance: 622,913 1,511,938 1,379,887 1,206,848 LEA Medical 300,000 400,000 Instructional Materials 593,754 BTSA 95,436 Reserve for RL Reduction 1,800,000 Mid-year Trigger Cut 1,463,529 Reserved for Economic Uncertainties 1,221,507 1,297,085 1,201,730 1,326,802 Unappropriated 128,619 1,287,906 TOTAL 4,214,186 6,766,394 6,507,829 6,472,314

Contingency Plan should District implement mid-year cuts/triggers ($1,463,529) $1,287,906 $ 100,000 $ 20,623 $ 55,000 1. Eliminate Unappropriated dollars 2. Delay maintenance projects currently budgeted in Unrestricted, General Fund Resources 3. Reduce SLIBG Site Allocations 4. Reduce Unrestricted Supplies Budget districtwide by 5%