3.  California State Budget – Overview of Educational Impacts  Significant LCAP Services/Activities  Budget Assumptions  Historical Review of Revenues & Expenditures (All Funds)  Significant Variances in Unrestricted GF Expenditures between 2013-14 & 2014-15

4. Increases State revenue projections by $2.4 billion Provides an additional $250 M towards LCFF implementation. (slight increase in gap closure) Includes 32-year plan, beginning in 2014-15, to tackle $74 billion liability in STRS Includes Rainy Day Fund (for voter approval in November) and Prop 98 Reserve Increases overall Prop 98 spending by only $242 million over January 2014-15 California State Budget – K-12 Impacts

5. Continues intra-year deferral buy-down but does not eliminate them entirely Provides $400.5 million towards funding prior mandate claims on a per ADA basis (includes intent language that districts prioritize funds for implementation of CCSS, though districts can use funds for any one-time purpose) Includes controversial provision limiting school district reserves to 6% (if the Rainy Day Fund is approved by voters) 2014-15 California State Budget – K-12 Impacts

6. Items NOT included in May Revision Additional one-time Common Core funding Proposals to address Adult Ed and CTE debates Funding to absorb additional costs of increased employers’ contribution to STRS Funding for school transportation COLA or equalization Mandatory and full-day kindergarten Funding for expanding Transitional Kindergarten to all four-year olds 2014-15 California State Budget – K-12 Impacts

7. State General Fund Revenues (Billions of Dollars)

8. State General Fund Revenues A Longer Term View (Billions of Dollars)

9. Governor’s CalSTRS Proposal Future Contribution Rates Eliminates the CalSTRS unfunded liability over the next 32 years

10. STRS: Employer Contributions School Employer Contributions Under Governor’s CalSTRS Plan (Dollars in Millions) 2014-152015-162016-172017-182018-192019-202020-21 Current Law Rate8.25% Proposed Increase.632.484.336.188.039.8810.85 New Rate8.88%10.73%12.58%14.43%16.28%18.13%19.1% 63% of funding burden on school employers –Statewide avg. impact $50 - $55 per ADA in 2014-15; as much as $560 per ADA in 2020-21 –Actual impact will differ across districts –No additional funding for this purpose 63% of funding burden on school employers –Statewide avg. impact $50 - $55 per ADA in 2014-15; as much as $560 per ADA in 2020-21 –Actual impact will differ across districts –No additional funding for this purpose

12.  Additional 9 th Grade Math Teachers (2)  Release period for a math teacher to work on formative/summative assessments  Professional Development  Expand after-school & in-class tutoring  Increasing teacher time for instruction, intervention, professional development, &/or collaboration (2%)  New Guidance Support Specialists to provide parent/student support activities  Curricular planning and development

13.  Communication activities (including texting system for school-to-home communication)  Improve district/school websites  Second semester parent event (open house/conferences)  Expand AP offerings & continue development of IB Program at SHS  CCSS aligned instructional materials  Technology (classroom sets of devices – CCSS funding)  Facilities & Safety assessment – update site plans for improvements

14.  AVID trained tutors for selected EL, 9 th grade Math & ELA classes  Summer Connection program for incoming 9 th graders  9 th Grade Academy for socially promoted 9 th graders(Phoenix Rising)  Half-time EL Program Coordinator  Part-time Intervention Coordinator (SHS)  Mandatory EL and Intervention Courses (8 th Period)  AP fees for low income students

15.  EL Program Assistants (one additional)  Phase in of updated program of study for EL’s  EL Support classes (refined/expanded)  SST’s for all LTEL 1-2, and Foster Youth  Investigate provision of Internet for low income students who don’t have access at home  ELA resource period for curriculum development .5 At Risk/Foster Youth counselors at each site

17. Assumptions for the 2014-14 Budget Development In May and June each year, the District finalizes its budget for the coming year. In order to project the budget, a series of assumptions about the conditions of the District must be determined. These assumptions are used as the basis for calculating revenues and determining expenditures, which make up the final budget for the next year. The accuracy of the District's budget projection for the next year is only as good as the assumptions that are used in developing the budget. If the assumptions are wrong, so too will be the budget.

18. Assumptions for the 2014-15 Budget Development Because it is impossible to accurately predict all of the assumptions that are needed in budget development, districts are required to update their budgets (and assumptions) three times after the original budget is adopted. The 45 day update - a revision that occurs within 45 days after the adoption of the State Budget 1 st Interim (December) 2 nd Interim (March)

19. Assumption – enrollment remains the same as prior year

20. CUHSD Financial Assumptions for 2014-15 Budget Development Projections – Revenues & Funds ADA change compared to prior year [3950.9] - 40.07 LCFF Per ADA Base Funding Amount $7,723.43 LCFF Supplemental/Concentration Funding $2,966,526 Total Funding Increase – All Revenue Sources $2,695,349 Agreement approval with IVROP (already recalculated  ) -$ 229,928 No Mandated Costs, AP Fee Reimbursement, RDA, or MAA $ 0 Transfer to Deferred Maintenance $500,000 Net Decrease in Contributions (RRM   & SpEd  ) $417,957 Estimated Unrestricted Beginning Fund Balance $9,620,287 Estimated Unrestricted Ending Fund Balance $8,930,417

21. CUHSD Financial Assumptions for 2014-15 Budget Development Projections – Expenditures Certificated (non-admin) salaries (2013-14 on/off-schedule payments) $855,640 Certificated (non-admin) Ongoing Increases $1,087,890 Certificated new positions (4) salaries $211,766 Potential increases in Management Salary/Benes not included $0 Classified – new LCAP positions (3) salaries $112,000 Benefits increases (Classified to Cap, STRS @ 9.5%) (Incl’s restricted) $783,008 Decreases in Unrestricted materials, services & capital outlay $1,123,616 Utilities Decreases (Electricity) -$104,000 New Bell System at SHS & CUHS (est’d @ $250 K) not included $0 Voice Over IP phone systems for CUHS & SHS (est’d at $50 K) $0

22. A Longitudinal Perspective General Fund & Cafeteria

30. Funding Target (2020-21) Moving target recalculated annually based on each year’s ADA Standard base + supplemental & concentration $ Funding Target (2020-21) Moving target recalculated annually based on each year’s ADA Standard base + supplemental & concentration $

31. Funding Formula Floor Current year id based on ADA & deficited RL plus categoricals Next year is based on current year LCFF entitlement & ADA Funding Formula Floor Current year id based on ADA & deficited RL plus categoricals Next year is based on current year LCFF entitlement & ADA

32. The “GAP” Difference between the target and the floor The “GAP” Difference between the target and the floor

33. The “Funding Rate” The percentage of gap closure determined each year This amount is multiplied by the “gap” The “Funding Rate” The percentage of gap closure determined each year This amount is multiplied by the “gap”

34. And determines the Increase in Funding And determines the Increase in Funding

35. So the “floor” plus the increase in funding due to “gap” closure gets you to your LCFF entitlement

37. Variance Due Primarily to: LCFF Increases. Gap funding plus all former Tier III programs and EIA - ($3.8 M) No RDA anticipated – ($304 K) Education Protection Act - ($44 K) Variance Due Primarily to: LCFF Increases. Gap funding plus all former Tier III programs and EIA - ($3.8 M) No RDA anticipated – ($304 K) Education Protection Act - ($44 K)

38. Variance Due Primarily to: Medi-Cal Administrative Activities (MAA) – ($23K) Advanced Placement – ($12 K) Variance Due Primarily to: Medi-Cal Administrative Activities (MAA) – ($23K) Advanced Placement – ($12 K)

39. Variance Due Primarily to: Elimination of Tier III & Transportation Programs (rolled into LCFF) Variance Due Primarily to: Elimination of Tier III & Transportation Programs (rolled into LCFF)

40. Variance Due Primarily To: IVROP Agreement Variance Due Primarily To: IVROP Agreement

41. All Funds A Longitudinal Perspective

49. Variance Primarily Due to: Certificated Non- management salary increases – Retro to Jan ‘14 7% – $548K Off-schedule 2% - $308 K Ongoing 7% - $1.08 M Add’l positions LC / Step & Column/Separations & Replacements (net) - $99 K Shift of Restricted to Unrestricted - $196 K Hourly LC - $130 K Class Overloads - $41 K Administration - $46 K Variance Primarily Due to: Certificated Non- management salary increases – Retro to Jan ‘14 7% – $548K Off-schedule 2% - $308 K Ongoing 7% - $1.08 M Add’l positions LC / Step & Column/Separations & Replacements (net) - $99 K Shift of Restricted to Unrestricted - $196 K Hourly LC - $130 K Class Overloads - $41 K Administration - $46 K

50. Variance Primarily Due to: New Positions LC – Guidance Support Specialists (2) & Add’l EL Program Specialist – $112K Hourly – Add’l AVID trained Tutors LC - $117 K ‘13-‘14 Off-Schedule (non- reoccurring) - $224 K Miscellaneous Adjustments (net) – $89 K Variance Primarily Due to: New Positions LC – Guidance Support Specialists (2) & Add’l EL Program Specialist – $112K Hourly – Add’l AVID trained Tutors LC - $117 K ‘13-‘14 Off-Schedule (non- reoccurring) - $224 K Miscellaneous Adjustments (net) – $89 K

51. Variance Due Primarily to: Proportional changes related to increases in salaries Certificated (including STRS to 9.5%*) – $557 K Classified - $165 K * STRS Rate will be adjusted to newly adopted rate at 1 st Interim Variance Due Primarily to: Proportional changes related to increases in salaries Certificated (including STRS to 9.5%*) – $557 K Classified - $165 K * STRS Rate will be adjusted to newly adopted rate at 1 st Interim

52. Variance Primarily Due to: Over 250 line item adjustments Most significant IVROP 13-14 One-time – $242 K Tier III IMFRP - $233 K Operations - $37.5 K Technology - $37 K Site Budgets - $62 K Athletics - $14 K Miscellaneous - $58 K Variance Primarily Due to: Over 250 line item adjustments Most significant IVROP 13-14 One-time – $242 K Tier III IMFRP - $233 K Operations - $37.5 K Technology - $37 K Site Budgets - $62 K Athletics - $14 K Miscellaneous - $58 K

53. Variance Primarily Due to: Over 325 line item adjustments Most significant Misc Travel/Conference- $41.5 K Electricity - $104 K Professional/Consulting/ Operating - $118 K Legal – $24 K Communications/Phone/ Postage- $49.7 K Miscellaneous Adjustments (net) - $28 K Variance Primarily Due to: Over 325 line item adjustments Most significant Misc Travel/Conference- $41.5 K Electricity - $104 K Professional/Consulting/ Operating - $118 K Legal – $24 K Communications/Phone/ Postage- $49.7 K Miscellaneous Adjustments (net) - $28 K

54. Variance Primarily Due to: Non- Reoccurring Expenditures One-time Technology – $236K Bus/Truck/Tractor – $226 K Bus Wash Rack - $50 K Misc. Site Budget Adjustments (net) – $8 K Variance Primarily Due to: Non- Reoccurring Expenditures One-time Technology – $236K Bus/Truck/Tractor – $226 K Bus Wash Rack - $50 K Misc. Site Budget Adjustments (net) – $8 K

55. Variance Due to: Increase in ICOE transfer for students served in county programs Variance Due to: Increase in ICOE transfer for students served in county programs

56. Variance Due to: Decrease in indirect costs charged to categorical programs Variance Due to: Decrease in indirect costs charged to categorical programs

57. Variance Due to: Transfer of funds to Deferred Maintenance Fund Variance Due to: Transfer of funds to Deferred Maintenance Fund

58. Variance Due to: Increased contributions to Special Ed - $255 K Decreased contribution to Routine Restricted Maintenance - $673 K Variance Due to: Increased contributions to Special Ed - $255 K Decreased contribution to Routine Restricted Maintenance - $673 K