San Marcos Unified School District and Fiscal Year Budget Projections Fiscal Year Budget Projections

San Marcos Unified School District General Information General Information Unified in 1976 Unified in Elementary schools 11 Elementary schools 3 Middle schools 3 Middle schools 2 Comprehensive High schools 2 Comprehensive High schools 2 alternative High schools (plus Adult Ed.) 2 alternative High schools (plus Adult Ed.) 17,670 Students K-12 17,670 Students K-12 State and Special Ed. Preschool programs State and Special Ed. Preschool programs Over 1,800 employees Over 1,800 employees 49 square miles 49 square miles Serves areas in 4 different cities in North County Serves areas in 4 different cities in North County

District Subgroups District Subgroups (100 or more students) Hispanic/Latino 48% White 39% Asian 5% Black/African American 3% Filipino 3% English Learners 26% Economically Disadvantaged 33% Students with Disabilities 12%

Comparison of State, County and District CST Performance

K-12 Indicators Increase academic achievement of each significant subgroup API Growth STATE DISTRICTALL STUDENTS WHITE HISPANIC AF. AMER ASIAN FILIPINO ECON. DIS ENG. LRN DISABIL

Continuous Improvement Strategies Test Score Analysis and Goal Setting ELA and Math Essential Standards Ongoing Monitoring-Common Interim Assessments, Individual Student Plans, Teacher Progress Meetings Professional Development Teacher Leadership Capacity Structured Teacher Planning/Collaboration Days Ongoing Grade Level/Subject Area Councils Intervention Programs, Summer School, Tutoring Parent Communication Secondary STAR Incentive Programs and Restructured Test Administration

Current Reductions for the School Year Elimination of K-8 Home to School Transportation Elimination of K-8 Home to School Transportation Reduction of Secondary School Counselors (5) Reduction of Secondary School Counselors (5) Reduction of Secondary Dean of Students (1) Reduction of Secondary Dean of Students (1) Reduction of School Resource Officer (1) Reduction of School Resource Officer (1) Reduction of Elementary Assistant Principals (.5) Reduction of Elementary Assistant Principals (.5) Reduction of Intervention Specialists ( 1.5) Reduction of Intervention Specialists ( 1.5) Elimination of District Office Management Positions (3) Elimination of District Office Management Positions (3) Raised Class Size: Middle & High School Raised Class Size: Middle & High School Reduction of work year (2 days) for CNS employees Reduction of work year (2 days) for CNS employees Reduction in Instructional Aide positions (33) Reduction in Instructional Aide positions (33)

Current Reductions for the School Year Reduction of Custodians (5) Reduction of Custodians (5) Reduction of Psychologist (1) Reduction of Psychologist (1) Reduction of Librarians (2) Reduction of Librarians (2) Elimination of Middle School Sports Elimination of Middle School Sports Elimination of funding for Japanese Student Exchange Program Elimination of funding for Japanese Student Exchange Program Outside funding for Welcome Back Breakfast Outside funding for Welcome Back Breakfast Elimination of Employee Recognition Dinner Elimination of Employee Recognition Dinner Funding for Ed-Connect covered by PTO’s Funding for Ed-Connect covered by PTO’s Discontinuation of Business Buzz articles Discontinuation of Business Buzz articles Summer School run by District Office Summer School run by District Office

Budget Issues Mid-year revenue reductions Mid-year revenue reductions Uncertainty as of January 20 th Uncertainty as of January 20 th Two Proposals Two Proposals Governor’s Governor’s Legislature’s ( Democrats only) Legislature’s ( Democrats only) Governor’s Budget Projection Governor’s Budget Projection Large target reductions Large target reductions No real specifics No real specifics State categorical programs – no restrictions State categorical programs – no restrictions

State Budget Revenue Collapse Three-year shortfall totals $31.4 billion

District Budget as of Dec Revenues $ 136,603,300 Revenues $ 136,603,300 Carryovers $ 4,671,000 Carryovers $ 4,671,000 Total Resources $ 141,274,300 Total Resources $ 141,274,300 Expenditures $ 141,493,100 Expenditures $ 141,493,100 Deficit (unrestricted) ($ 218,800) Deficit (unrestricted) ($ 218,800)

Governor’s Proposed Cuts Reduce.68 % COLA ($ 655,700) Reduce.68 % COLA ($ 655,700) Additional Rev. Cuts ($ 4,477,700) Additional Rev. Cuts ($ 4,477,700) Total cuts ($ 5,133,400) Total cuts ($ 5,133,400) Proposes some Flex In Categoricals ? Proposes some Flex In Categoricals ? Retroactive to July 1 st Retroactive to July 1 st Includes Cash Deferral payments into Includes Cash Deferral payments into

Legislature’s Proposed Cuts Reduce Def. Maint. * ($ 650,000) Reduce Def. Maint. * ($ 650,000) Reduce.68 % COLA ($ 655,700) Reduce.68 % COLA ($ 655,700) Reduce Categoricals * ($ 3,283,500) Reduce Categoricals * ($ 3,283,500) Total cuts ($ 4,599,200) Total cuts ($ 4,599,200) Categorical funds expended thru June ($ 1,400,000) Categorical funds expended thru June ($ 1,400,000) * Def. Maint. – is not in the General Fund * Def. Maint. – is not in the General Fund

Probable Deficit Current Unrestricted ($ 218,000) Current Unrestricted ($ 218,000) Reduce.68 % COLA ($ 655,700) Reduce.68 % COLA ($ 655,700) Legislature’s Reductions ($ 1,400,000) Legislature’s Reductions ($ 1,400,000) Lottery Reductions ($ 146,200) Lottery Reductions ($ 146,200) New projected Deficit ($ 2,419,900) New projected Deficit ($ 2,419,900) Best Case Scenario Best Case Scenario

Revenue Limit Cuts as Proposed by Governor and Combined and Combined COLA 5.66% COLA 5.66% Additional Cuts 4.57% Additional Cuts 4.57% COLA 5.02% COLA 5.02% Additional Cuts 2.52 % Additional Cuts 2.52 % Net Reduction *17.77% Net Reduction *17.77% Approximately $28 million over 2 years Approximately $28 million over 2 years

Governor’s Additional Proposed SMUSD Budget Cuts Carry Forward of reductions Carry Forward of reductions New Rev. limit Cuts($ 2,860,000) New Rev. limit Cuts($ 2,860,000) Additional Sales Taxes($ 150,000) Additional Sales Taxes($ 150,000) Expanded Sales Taxes($ 1,000,000) Expanded Sales Taxes($ 1,000,000) Increase in Reductions ($ 4,010,000) Increase in Reductions ($ 4,010,000) Plus loss of Interest for deferred payments Plus loss of Interest for deferred payments Sales Tax is Worst Case Sales Tax is Worst Case

Possible Funding Reductions per Governor’s budget proposal Carry forwards($ 5,133,400) Carry forwards($ 5,133,400) Proposed($ 4,010,000) Proposed($ 4,010,000) Total reductions($ 9,143,400) Total reductions($ 9,143,400) Hopefully the worst case scenario for the General Fund Hopefully the worst case scenario for the General Fund

District Deficit Budget Cuts Budget Cuts Ongoing Deficit $ 2,419,900 Best Case Ongoing Deficit $ 2,419,900 Best Case Reductions$ 4,010,000 Worst Case Reductions$ 4,010,000 Worst Case Personnel Increases Personnel Increases Step & Column $ 2,500,000 Step & Column $ 2,500,000 Health Benefits $ 750,000 Health Benefits $ 750,000 Special Ed Growth $ 600,000 Special Ed Growth $ 600,000 Other Adjustments Other Adjustments Other Oper. Incr. $ 400,000 Other Oper. Incr. $ 400, Growth Enrollment$ 1,000,000 (net Income $$$) 300 Growth Enrollment$ 1,000,000 (net Income $$$) Total Deficit$ 9,679,900 Total Deficit$ 9,679,900

Budget Review Items Negotiated Items Freeze Step and Column Reduce Work Calendars (All Staff – District wide) Personnel Teachers D.O. Administration Site Administration Support Staff Custodial School Resource Officers Intervention Specialists Campus Supervisors Library Media Tech’s

Budget Review Items Programs Physical Education Maintenance Grounds High School Athletics Class Sizes at all levels Other items Dept. Budgets School Supplies Utility reductions – conservation Remove Grass – water and grounds

Next Steps Create program & certificated staff reductions to present to Governing Board in February Create program & certificated staff reductions to present to Governing Board in February Formalize March 15 th notices Formalize March 15 th notices March – Board meeting to approve Certificated staff notices March – Board meeting to approve Certificated staff notices March – April – create program & classified staff reductions to present to Governing Board in April March – April – create program & classified staff reductions to present to Governing Board in April April – Board meeting to approve classified staff layoffs April – Board meeting to approve classified staff layoffs Update Budget information – Governor’s May Revise Update Budget information – Governor’s May Revise

Presentation Discussion