January 7, 2013

PUSD has two “buckets” to pay for it’s day-to- day and yearly operations: Maintenance and Operations (M & O) Things that are considered consumable and are used up within the fiscal year. Capital Outlay Physical items or improvements that remain from year-to year such as desks, computers, buses, and buildings Broken into Soft Capital and Unrestricted Capital (CORL)

 Formula driven calculations using student enrollment at the 100th day  100 th day count in January of this year will be used for funding formula for next year  We receive approximately $5,219 per student in M&O  Includes all support monies e.g. Override, Career Ladders, Transportation, Group B, etc..  State base support level (BSL) is $3,267

 Override  Override equates to an additional 10% of Revenue Control Limit ($17.0M)  Override phases out over 3 years if not renewed by voters every 5 years;  Career Ladders  Additional 5% to BSL for certified employees  Recent changes have eliminated Career Ladders phasing it out 1% per year  2% in next year’s calculations  Proposition 301 or Classroom Site Fund

Based on State Sales Tax (.6 cents)  Fund 11 Base Salary –20% of the monies received are used for teacher base salary increases and employment-related expenses.  Fund 12 Performance Pay – 40% of the CSF monies are used for performance-based teacher compensation increases  Fund 13 Other – The remaining 40% can be used for any of the following maintenance and operations purposes: – Classroom size reduction – Teacher Compensation Increases (currently 100%) – AIMS Intervention programs – Teacher Development – Dropout Prevention

Regular Education  Expenditures relating to K-12 learning Special Education  Expenditures relating to activities for students having a variety of special needs, including:  Specific Special Needs  Gifted Instruction  Vocational and Career Education Instruction  Remedial Instruction  ELL (English Language Learners) Pupil Transportation  Expenditures relating to transporting students to and from school as well as school activities. This includes gas and repair & maintenance for the bus fleet.  Special Education transportation equates to approximately 50% of transportation expenditures

The Maintenance & Operations Budget is spent for the day to day expenditures. Typical costs include:  Salary and Benefits of employees (88.6% of M & O Budget)  Supplies  Utilities  Minor Maintenance and Repair

 State Equalization Assistance  The amount of money the state provides to school districts  School District Property Taxes  Primary and Secondary Rates  Residential Property  Commercial Property – 25% and currently declining  2013 at approximately %20  Funding for Overrides, Bonds, and a portion of Career Ladders are funded entirely through District Property Taxes.

 Capital Outlay Revenue Limit (CORL)  This unrestricted Capital Fund is allowed to be transferred into the M&O Budget  100% is currently being transferred  There is a weighted funding for elementary vs. high school  Approximately $265 per student  Recent Changes  Current year CORL funding was approximately $169 per student

 Soft Capital  Restricted for school use only and cannot be transferred to other budget “buckets”  Approximately $225 per student  Recent Changes  Soft Capital may now be used for any operational expenditure or capital item  Monies must still remain in Soft Capital bucket  Current Soft Capital Funding was approximately $10 per student

 Proposed budget must be presented by July 5th  Budget must be adopted no later than July 15 th  Tax levies must be fixed and assessed by third Monday of August  Generally set first week of August  First revision must be submitted by December 15 th if reducing limits  Further revisions may be made anytime up to May 15 th

 M&O - $188,539,456  Will increase by approximately $4.6M with financial restatements from  Soft Capital - $1,370,992  Unrestricted Capital $3,166,225

 Next year’s budget requires $3.3M reduction in M&O spending if per student funding and student count remains the same  State expected to use rainy day fund in order to accomplish this  Per student funding is tentatively being planned to remain stable through FY 2016

 Federal and State Projects  “Title” Funds  Title I- Economically disadvantaged neighborhood schools  Title II- Professional growth and development of certified staff  Title III- Supplementary funds for ELL programs  IDEA  Special needs funding to meet additional requirements associated with IEP’s  Food Services  All Federal Monies and self funded  Civic Center  Rental of Facilities and Equipment  Community School  Community based educational opportunities and camps

 Auxiliary Operations  Parent paid fees for services (e.g. field trips)  Extra Curricular Activities Fees and Tax Credit  Fees must be approved by Governing Board and meet ALL requirements of state statute  Gifts and Donations  Always welcomed and always appreciated!!  Donor restrictions are honored  Gaming Revenue -  50% to Salary Compensation  50% to Instructional Improvement