1. Fontana Unified School District Budget Update 2010-2011

2. Original Budget O May Revise State Budget O 3.85% On-going deficit (Administration Cut) O 18.355% Deficit O COLA -.39% Total reduction in Revenue Limit $55,293,505.00

3. October Approved Budget O COLA -.39% ($25.00) O Deficit Factor 17.963% ( $1,146.04) O No 3.85% on-going deficit (Administration Cut) Total Revenue Limit Reduction $44,674,822.00

4. Deferrals 2010-11 B-18

5. 2010-2011 FUSD Deferral Amounts O 28.5% of Revenue Limit Funds Deferred until July/August 2011 O 25% original deferral before new budget O 3.5% additional deferral based on increase in Revenue Limit Total Dollars Deferred $55,590,711 10-11 Anticipated Deficit Amount $55,293,505

6. Deferral Impact on FUSD O Cash Flow Issues O February only receive 1% Revenue Limit O March 0% Revenue Limit O April only receive 13.6% Revenue Limit O All of March deferral and Part of April O May only receive 1.9% O June 0% Revenue Limit O Total apportionment for 5 months 16.5% O Approximately $32,184,096.00

7. FUSD Monthly Expenditures O Total Monthly Expenditures $28,364,914 O Includes Payroll and Vendor Payments O Includes Unrestricted and Restricted expenditures O Cash needed for 5 months $141,824,570 O District Shortage $109,640,474

8. Solutions for Cash Shortage O Incoming Categorical Funds O Minimize expenditures O Constitutional Advancement O Inter-fund borrowing O Tax Revenue Anticipated Notes (TRANS) O File for state waiver for deferrals O Last date to file is March O Must show shortage in March O FUSD cash flow issue begins in April

9. O State Superintendent of Public Instruction Assumes Control O Loan from State O State Superintendent assumes all the legal rights, duties, and power of the governing board O State Superintendent assigns a Fiscal Advisor to the district O Fiscal Advisor makes all financial decisions until loan is repaid O Board loses all authority O Removal of District Superintendent Consequences for Negative Cash Flow

10. FUSD Plan of Action O District Budget Committee has been meeting since September to collaborate on possible reductions. O District Management has been meeting weekly with county appointed Fiscal Expert O Series of Board Budget Workshops have been scheduled. (November 10, 15, 22) O First Interim approval required by December 15, 2010.