State Funding FONTANA UNIFIED SCHOOL DISTRICT nd Interim Report March 7, 2012

Mid-Year Reductions Cut ADA funding Eliminated Transportation – Changed to Higher Deficit Factor (SB 81) Eliminated Funding for Transitional Kindergarten Proposed new Funding Formula for K-12 Education Potential ADA Reduction of $370/ADA Dependent on Increase in Taxes MAJOR CHANGES BY GOVERNOR

Funded ADA vs. P-2 ADA

ADA Comparison

Projected ADA for based on P-1 ADA for – 38, Potential ADA for if Increase ADA for – 39, Difference in Potential Increase in ADA – Potential Revenue from increase in ADA – $2,210, Revenue Increase due to Increase in ADA

Budgeted1 st Interim2 nd Interim $214,816,470.93$215,481,738.00$213,459, $221,343,261.75$218,765,025.00$198,108, $227,022,824.91$223,536,619.00$202,001, pg. 145pg. 102pg. 103 Unrestricted Revenue Comparison Budgeted1 st Interim2 nd Interim $208,566,683.00$218,500,997.00$217,181, $222,866,304.00$224,123,428.00$219,767, $227,792,631.00$228,353,797.00$222,276, pg. 145pg. 102pg. 103 Unrestricted Expenditure Comparison

Changes In Revenue for Adjusted ADA (-20.22) (-$104,398) Governor’s Trigger in Reduction of ADA $13 per Student (-$507,111) Elimination of 50% Transportation Funding 50% is equal to approximately (-$750,000.00) SB81 (-$1,664,759)

CHANGES IN REVENUE FOR Governors Proposal of Flat Funding Increase in Deficit Factor (2.446 %) $6.3 million Reduction of $370 per ADA $14.3 million Total Reduction in Revenue $20,600,000

Changes In Revenue for Total Reduction in Revenue $21,400,000 Governors Proposal of Flat Funding Increase in Deficit Factor (2.446%) $7.2 million Reduction of $370 per ADA $14.2 million

CHANGES IN EXPENDITURES FOR Salary Adjustments Decrease Expenses by $1,500,000 Capital Outlay Increase by $200,000 Decrease by $1,300,000

CHANGES IN EXPENDITURES FOR Salary/FTE Adjustments Decrease by -$2,700,000 Employee Benefits Adjustments (7%) Decrease by $1,600,000 Decrease by $4,300,000

CHANGES IN EXPENDITURES FOR Salary/FTE Adjustments Decrease Expenses by $3,300,000 Employee Benefits Adjustments (7%) Decrease by $2,500,000 Decrease by $5,800,000

Revenue$213,459,529$198,108,039$202,001,649 Expenditures$217,181,092$219,767,699$222,276,540 Difference($3,721,563)($21,659,660)($20,274,891) Fund Balance$37,462,675$33,741,112$12,081,452 New Difference$33,741,112$12,081,452($8,193,439) Reserve (4%)$13,552,337$11,649,191*($5,863,966)* Remaining Funds$20,188,775$432,261($14,057,405) UNRESTRICTED FUND BALANCE

Qualified Budget for 2 nd Interim Report Due to Revenue Uncertainties – Reduction in Revenue Hinging on Potential Tax Increases Need to make $14,500,000 in reduction by – Increase Revenue – Reduce Expenditures – Union Concessions – Reduce Staff

QUESTIONS?