1. Governor’s May Revise Presentation San Marino Unified School District Board of Education Meeting May 26, 2015

2. What is the May Revise? A snapshot of the State’s fiscal picture and current economic conditions The Governor’s revised proposals for the Proposed State Budget The basis and the beginning of the legislative process

3. State Revenue Projections

4. May Revise ~ K-12 Education Elimination of apportionment deferrals for K-12 Education 1.02% COLA Advance the implementation of the Local Control Funding Formula – benefiting school districts with high levels of English Learners, Foster Youth, and Low Income Students One-Time Discretionary Funding (intended for the implementation of Common Core State Standards, instructional materials and technology infrastructure projects, etc.) Additional $313 million for Prop 39 Energy Grants

5. Changes Since January Proposal ItemJanuary BudgetMay Revision LCFF Gap Funding Percentage32.19%53.08% Proposition 98 Minimum Funding Guarantee 2015-16 $65.7 billion$68.4 billion 2015-16 COLA1.58%1.02%

6. Bridging the Gap and Risks/Challenges The Governor is proposing to advance LCFF funding toward the target by 53% over 2014-15 funding levels, a 21% adjustment over his January proposal. Risks/Challenges Proposition 30 Temporary Taxes Volatility in State Revenues Funding the Drought Significant increases in Employer Contributions for CalSTRS and CalPERS contributions over the next 5 years

7. Legislative Analyst’s Analysis Minimum Guarantee May Be Higher by $723 million Recommended Caution in Building Final Budget Additional Funding for Mandated Claims Reimbursement Additional Funding for LCFF Implementation Overall Approach Appears to be Sound

8. CalSTRS “Squeeze” CalSTRS unfunded liability est. $74.4 billion $4 billion increased costs by 2020-21 Costs are also increasing for CalPERS In 2015-16 SMUSD’s costs will increase by $360,000 Long-term pressure on LCFF base funding No dedicated funding for CalSTRS or CalPERS

9. Budget Timelines June 9 th Proposed Local Control Accountability Plan (LCAP) presented to the Board of Education and Public Hearing June 23 nd Proposed District Budget presented to the Board of Education and Public Hearing July 1 st District Adopted Budget due to L.A. County

10. Thank you