Lynwood Unified School District First Interim Financial Reporting Board Presentation December 14, 2010

Table of Contents Background Fluctuation of Ending Balance – Unrestricted General Fund Assumptions Current Year Projections Multi-Year Projections Ongoing Concerns  Declining Enrollment  State Budget Next Steps 2

Background Statutory Requirement  Education Code  At least twice a year  December 15 and March 15 Certifications  Positive  Qualified  Negative 3

Fluctuations of Fund Balance Unrestricted General Fund November FCMAT-$15,872,771 -$30,454,575 March 2010 – nd Interim -$9,531,755-$22,357,958 July 2010 – Adopted Budget $2,067,488-$3,835,809 September 2010 – Revised Adopted Budget $5,877,063$2,724,742 December 2010 – First Interim $10,768,547$8,794,756 4

Fluctuations of Fund Balance Unrestricted General Fund 5

Assumptions Average Daily Attendance(ADA)  Continued Enrollment Decline  Higher ADA from is used for funding purposes – 15, % COLA = ($25.00) 0% COLA in and 1.9% in Deficit Factor %  Lowered from % (neutralize -0.39% COLA) Other Revenue Limit Reduction – 0%  Lowered from 3.85% (approx. $4.0 million increased revenue limit, ongoing) Mandated Cost – Approx. $675,000 1-time funding Education Jobs Fund –$3 million (1-time) ARRA Fiscal Stabilization Fund - $1.1 million (1-time) 6

Assumptions (continued) ARRA Fiscal Stabilization Fund - $1.1 million (1-time) 2 Furlough Days – Certificated Bargaining Unit K-3 CSR 30:1 students to teacher ratio in all classes except Quality Education Investment Act (QEIA) schools. Lottery $ per ADA Property & Liability Insurance with $10,000 and $15,000 deductible – reduce $450,000 in premium E-rate funding $600,000 (both 1-time and ongoing) Unfilled Positions Saving Remove 11 Leased Portable Classrooms Terminate Warehouse Storage Lease (Effective January) 7

Current Year Projections Beginning Fund Balance - $2.5 million Total Revenues - $97.5 million Total Expenditures - $89.2 million Net Change - $8.3 million Designated for Economic Uncertainties - $10.8 million 8

Multi-Year Projections 9 * In , the Reserve for Economic Uncertainties is less than the statutory 3% requirement.

Ongoing Concerns – Declining Enrollment 10

Ongoing Concerns – State Budget Budget Act (Enacted October 8) Closes Estimated $19.3 Billion Deficit  $8.4 Billion Spending Reductions, $5.4 Billion Additional Federal Revenues,$5.5 Billion Other Solutions In November, Legislative Analyst Projected Budget $25 Billion Budget Gap  $6 Billion in  $19 Billion in No Relief In Sight  Unemployment Rate Remains Above 12%  Recovery is at an Anemic Pace The Possibility of Mid-Year Budget Cuts Loom Large 11

Next Steps  Prepare for Mid-Year Budget Cuts  Continue Fiscal Recovery Efforts  Develop Enrollment and Attendance Enhancement Strategies  Identify other Revenue Enhancement Measures  Identify Other Costs Saving Strategies 12

Questions 13