1. FISCAL YEAR 2012 – 2013 1 st Interim Report December 19th, 2012

2. THE ECONOMY Job Growth and Economic Confidence on the Rise Fiscal Cliff for Economy is a Concern Housing Market Gaining Ground Federal Monetary Policy Remains Aggressive

3. CALIFORNIA’s OUTLOOK Job Growth is on the Rise –Unemployment still High –Long-Term Unemployment Very High Retail Sales are Increasing –Prices Outpace Disposable Income –Savings Rate Declines Credit Still Tight / Loan Balances Decreasing Foreclosure on the Rise Again Sales Tax Increase

4. SKUSD Budgetary Goals Supportive of a Educational Services Fiscally Responsible –Conservative but Realistic Approach –Mindful Economic Trends –Use Historical Analysis –Flexible Collaborative Business Planning

5. SKUSD REVENUE 84% of Funds Come from Revenue Limit Allocation

6. Base Revenue Limit (BRL)

7. Historical Deficit Factor

8. Average Daily Attendance (ADA)

9. BUILDING OUR BUDGETS Revenue Assumptions –Cost of Living (COLA) 3.24%, 0.00%, 2.00% –ADA Decline but Stabilizing –Slight Decline in Grants and Categorical –Deficit Adjustment Increased by 1.7%, then stable –Prop 30 passed

10. Mid -Year Trigger If the November tax bill does not pass our BRL will be reduced by $457 per ADA. $457.00 x 2873 ADA = $1,312,961.00 REDUCTION

11. Revenue Budget Calculations 2011/122012/13 COLA2.23%3.24% ~Average COLA2.24%3.10% Base Revenue Limit $ 6,402.00 $ 6,542.92 COLA 143.00 212.00 Equalization - - Total BRL $ 6,545.00 $ 6,754.92 Adjustment Other98.16 Total Adj. BRL $ 6,853.08 Deficit 0.79398 0.77728 Deficited BRL $ 5,196.60 $ 5,326.76 Growth/Decline ADA (152.29) (132.00) Revenue Limit ADA 3,005.00 2,873.00 Revenue Limit $ 15,615,780 $ 15,303,787 Funded ADA x Deficited BRL Trigger $457 per ADA - 1,312,961.00 Revenue Limit Allocation $ 15,615,780 $ 13,990,826

12. SKUSD EXPENSES 88% of Expense Budget is Compensation

13. FY 2012-2014 Revenue Limit Projections

14. FY 2012-2014 P&L

15. 2012-2014 RESERVE PROJECTIONS

16. Current Trends