Budget Saddleback Valley Unified School District 1

Hitting a Moving Target... Economy State Budget not yet settled - most betting on August May Revise as basis - hope for better Estimating enrollment What’s next 2

Economy Recession or not? Watch these indicators: Unemployment, Housing, Auto Sales, Durable Goods, Business Equipment and Business office/factories So far Unemployment is 4.5% annually Expect slow return Statewide but OC Mortgage Industry will not return No tax windfalls on the horizon 3

State Budget Status Conference Committee meeting but has made little progress Did agree to delay some payments to assist State cash flow Education issues put at end of agenda “Big 5” has met but no action 4

May Revise...is this the best we will see? Proposals to give Education more $$$ Where it will come from - lottery, higher taxes, cuts in State services? Hardened stances make settlement difficult-- not feeling pressure yet Latest State Budget was 8/31/2002 5

Our “May Revise” Budget Includes: No COLA in State funding; 6.5% reduction in Categorical funding Reductions totaling $11.7 million Health costs up 8.8%;+$1,141 employee Transfer of $3 million of Categorical program reserves to Unrestricted 6

Flexibility - to be or not to be? proposed by Governor in May Revise between categoricals from categoricals to unrestricted not included in Democratic budget proposals not from Federal funds or Cafeteria

Flexibility... not from Spec. Ed., EIA or Textbooks based on amounts leftover - June 30, 2008 our transfer plans are not specific due to lack of clear State guidelines - we just know it will be $3 million

Unknowns and Risk Areas Enrollment - has the trend basis has changed? Rising Payroll costs - costs exceed norm Rising Health costs State economy impacts to future budgets 9

Enrollment Planning 10

Enrollment vs Average Daily Attendance (a.d.a.) 11

Next Steps Monitor the State Budget process Close out and prepare “unaudited actuals” Prepare for Revised Final Budget in September If State Budget is later than August, then make revisions to Revised Final Budget in October 12