1. Prepared by: Kevin Franklin & Pheno Taylor

2.  Education Code (EC) Sections 42127(a) and 42127(a)(2) require the Governing Board of each school district to adopt a budget on or before July 1 and file that budget with the county superintendent of schools.

3.  Adoption – June 30 th  45 day Revise – Due 45 days after State budget adopted if significant changes from adoption  1 st Interim – As of Oct 31 st, due by Dec 15 th  2 nd Interim – As of Jan 31 st, due by Mar 15 th  3 rd Interim – As of Apr 30 th, due by June 30 th (qualified or negative certifications)  Unaudited Actuals – As of June 30 th, due by Sept 15th

4. Full Revenue Limit Funding Reduced by the State of California 18.997% from Full-funding. We are being funded 81 Cents Of Every Dollar Owed In 2013-14. Federal Sequestration reductions for all programs (Title I, II, and III) are projected to be approximately 5%-5.5% Declining Enrollment which equals a loss of revenue (projected loss of 50 ADA) Uncertainty of Construction Liabilities: Penalties & Legal Costs (Jefferson ORG/Whelan Huerta) Depleted Reserve in June for the fiscal year 2015-16 Need For Fiscal Recovery Plan Directly Related To On-Going Shortfall & Deficit Spending

5.  Revenues Based on Current Revenue Limit Funding Formula Deficit Reduction Factor of 22.272% COLA – Included 1.565%  Staffing ratios maintained at current class sizes  2013-14 Employee Compensation Restore 3% reduction and restore 3 furlough days for certificated staff (5 furlough days) Classified staff – 8 furlough days  EPA funding expected to be received in Sept, Dec, Mar, June

6.  Projected Declining Enrollment & ADA 2014-15 Loss of Approx. 50 ADA 2015-16 Loss of Approx. 50 ADA  QEIA Revenue included through 2015-16  Use of State Categorical Flexibility

7.  Projected increase in health benefits  Step and column increases  Savings from employee concessions  Capital Outlay Savings of $108K

8.  Local Control Formula is not included in Budget Adoption report  COLAs included for 2014 -15 (1.65%) and 2015-16 (2.20%)  Deficit Factor included each year at 22.272%

9.  This Budget adoption report does not call for a school district positive, qualified, or negative status report  2012-13 and 2013-14 Current Bargaining Units Agreements Included In Projections  2014-15 Agreement Expires: Employee Compensation Restored to 2009/10 Levels. No Furloughs, No Reductions In 2014-15  Charter School Fund has a projected Reserve balance of $3,277,674

10. 2013/142014/152015/16 Revenue$ 26,104,083$ 25,653,432$ 26,939,944 Expenditures$ 29,097,658$ 29,171,956$ 29,188,340 Surplus/ (Deficit)$ (2,993,575)$ (3,518,524)$ (2,248,396) Beginning Balance$ 10,205,813$ 7,212,238$ 3,693,714 Ending Balance$ 7,212,238$ 3,693,714$ 1,445,317 Reserve for Economic Uncertainties $ 1,422,789$ 1,434,106$ 1,437,218 Additional Available Reserves $ 5,789,449$ 2,259,608$ 8,099 Available Percentage 15.21%7.73%3.02%

13. 2012/132013/142014/15 Grade KOption 2, Fully Implemented, 100% Funding Grades 1-3Option 1, Fully Implemented, 100% Funding Option 1, Fully Implemented, 100% Funding. Some Reduction Due to Sunset of Legislation 6/30/14 QEIA Grades 4-8Fully Implemented Felton, Jefferson, Moffett, LMS Grades 4-529:1 Buford & Huerta 29:1 Buford & Huerta 29:1 Buford & Huerta

14.  District Negotiations  Submit Adopted Budget by July 1, 2013  Await Governor’s Signature on Signed Budget  Analyze LCFF and Associated Education Trailer Bills o It may take several months for final trailer bills and regulations to come out

15. Questions?