1. 2012-2013 2 nd Interim

2. Budget Reduction Process

3. Budget Reduction Process (cont.) At February 12, 2013, meeting Board approved Scenario A Strategic decision to intentionally spend down reserves vs. implementing reductions that would eliminate positions and/or be across the board salary changes for all staff

4. Scenario A Approved February 12, 2013

5. Budget Reduction Process (cont.) As additional opportunities were identified, we included them to offset reductions needed Changes in revenue Mandated costs, P&L JPA Dividends, etc. Changes in staffing due to enrollment change Reduction in expenses not previously known Special Ed Transportation updated expense

6. Other Adjustments Considered

7. 2012-13 2 nd Interim Incorporates Scenario A and other changes Some changes effective this year (2012-13) Others included in assumption document and MYP form for two out years (2013-14, 2014- 15) Budget reductions incorporated reduced deficit spending by $2.5M over three years

8. Assumptions Step & Column of 2.0% for certificated and 1.0% for classified Consumer Price Index increase of 2.2% in 2013-14 and 2.4% in 2014-15 included for goods and services Increase in Workers Compensation coverage of 10% in 2013-14 22.3% deficit factor We receive 77.7% of each State revenue limit dollar 1% contribution to Routine Repair & Maintenance in 12-13 Return to 2% in 13-14 Incorporates one-time and ongoing Scenario A budget reductions

9. Assumptions Funded ADA as follows: 2012-13 = 2,470.10 (based on 2011-12 P2) 2013-14 = 2,432.45 2014-15 = 2,413.05 Assuming enrollment decline of 20 students in each year No budgeted changes in salary or benefits in any of the three years H&W cap at $10,000 across all years Budgeted COLA of 1.65% in 13-14 ($200.4K) and 2.2% ($270K) in 14-15

10. Contributions Special Education* (Resource 6500)$ 822,242 Special Education* (Resource 3310)$ 27,531 Special Education* (Resource 3315)$ 3,358 Class Size Reduction (Resource 1300)$ 150,452 Transportation* (Resource 7230)$ 89,805 Routine Repair & Maintenance* (Resource 8150)$ 178,146 Art and Music Block Grant(Resource 0760)$ 38,472 Medi-Cal (Resource 5640)$ 14,669 Total Budgeted Contributions$ 1,324,675* *: Only Resources 2xxx-7xxx are included in the SACS contribution line.

11. Reduction Targets

12. Budget Reduction MYP

13. Additional Items Continue to work through Budget Enhancer process Possible increased enrollment may change ADA projections at budget Local Control Funding Formula (LCFF)

14. LCFF – Local Control Funding Formula Governor Brown is again proposing a major overhaul of California’s system of school finance Calls for implementation of a new Local Control Funding Formula (LCFF) – previously known as Weighted Student Funding LCFF would replace revenue limits and most categorical program funding Funds allocated through formula would generally be flexible and could be used for any educational purpose

15. LCFF – Local Control Funding Formula Key elements of proposed formula Base grant target equal to undeficited statewide average base revenue limit per ADA - $6,816 (including 1.65% statutory COLA) Differential adjustments for primary, middle and high school grade spans; added funding for K-3 Class Size Reduction (CSR)

16. LCFF – Local Control Funding Formula Additional funding based on demographics of the schools, including English Learner population Pupils eligible for free & reduced meals Foster youth

17. LCFF – Local Control Funding Formula Special Education, Child Nutrition, and other federally mandated programs are not included in formula Transportation funding continues as an add-on to the formula for districts that currently receive funding Timeline: Phased in over seven years – completed in 2020-21

18. How Much is Funded? Fully funding the new formula in 13-14 would cost more than $15 billion Governor’s Proposal sets aside $1.6 billion 10% proration factor provides reasonable estimate, but as more details emerge, estimate could change Most categorical funds are kept in base, but programs go away

19. What does it mean to Jefferson? In January, when LCFF was presented in Governor’s 2013-14 Budget, no info provided to give district’s ability to estimate impact Department of Finance staff was expected to provide estimates of LEA funding within ‘the next few weeks’ In February, still no info from DOF or LAO’s office – trailer bill language in constant flux and no one was trying to provide info to LEA’s

20. Jefferson’s (Very) Preliminary LCFF Estimate Late February – School Services provided “LCFF Simulator” tool Based on that calculator, estimate for our district is just under $400K Still many unknowns COLA included? Or in addition to? Deficited or undeficited?

21. 2013-14 Budget Development Likely we will not have firm info on LCFF in time to include in 13-14 Budget LCFF is a proposal - changes likely – may not be enacted