1. Preliminary 2015-16 Budgets Board Planning Retreat February 10, 2015

2. 2015-16 Student Enrollment Projection 2015-16 District Enrollment Projection ??? 2014-15 State Enrollment Projection12,353 District Projected Enrollment Increase ??? 40 th Day Reported Enrollment12,107 Less: State Projection 12,353 Over projection (246) State Budget Reduction: ($431,956)

3. Projected Local Revenue Increase County per pupil for enrollment growth $ ??? 1% Inflationary increase to district tax $ 326,517 Savings from State longevity (certified staff) 195,000 Total Net Increase $ 521,517

4. Projected Local Continuation and Expansion Budget Increases State Mandates 2% State pay raise (placeholder)$1,015,269 Employer health insurance match increase ($5378 to $5475) $ 81,480 State retirement match increase (15.21% to 15.82% estimated)$ 222,650 Affordable Care Act – health insurance for temporary staff$ 54,750 Subtotal$1,374,149 Continuation of Current Services Charter school student enrollment – Revenue Sharing$ 300,000 National Board stipends –teachers moved to Local fund$ 86,500 Driver Training (loss of State funds)$ 210,000 Orange County Living Wage match – to $12.76 per hour$ 36,500 (Locally-paid staff only) Subtotal$ 633,000 TOTAL OF CONTINUATION BUDGET REQUESTS$2,007,149

5. Projected Local Continuation and Expansion Budget Increases Expansion Requests Guidance Program Review $ 50,000 Classified Employee Pay Study Salary Adjustments (est.) 200,000 Administrative Employee Pay Study Salary Adjustments (est.) 250,000 Expansion Requests from Schools and Administrative Office 3,831,170 TOTAL OF EXPANSION REQUESTS $4,331,170 GRAND TOTAL OF CONTINUATION AND EXPANSION REQUESTS $6,338,319 BUDGET SHORTFALL ($5,816,802)

6. Ad Valorem Tax Increase Required to Fund Budget Shortfall Using Current Year Valuation: County Ad Valorem Tax Increase= $5,816,802/$1,009,156 = 5.76 cents ($1,638,241 X 61.6% = $1,009,156)

7. Local Fund Balance Projection Assign $1,000,000 in Fund Balance for 2015-16 Estimated year-end unassigned fund balance for June 30, 2015 is $3.8 million or 5.57%; slightly above target

8. 2015-16 State Budget Potential pay raise for teachers if the entry level salary is increased from $33,000 to $35,000 May permanently lose the $199,479 in Driver Training funds Student enrollment growth projection will be a low number; small budget increase

9. Key Dates on the Budget Development Calendar March 5 - Budget work session March 19 - Public Hearing and budget work session April 16 - Budget discussion and approval of budget to be submitted to the County April 20 - Submit Board’s budget request to County April 28 - Joint meeting of school board’s for budget presentations to County