Encinitas Union School District

1. Encinitas Union School District 2012-13 Proposed Budget June 26, 2012

2. Themes for the May Revision • It’s all about the economics • Revenues are improving at a much slower rate than expected in January • Immense pressure on the State Budget and competition for limited resources • The revised Budget has a lot of moving parts again this year • Bottom line: Best case is flat funding for education – and maybe a lot worse • In January, the Governor’s tax initiative was expected to fill the revenue gap • In May, revenues have fallen, and, if the initiative passes, it fills only half the gap • Today’s funding level may be our new reality for the foreseeable future

3. The May Revision • The May Revision first recognizes that January’s projected $9.2 billion State Budget shortfall has grown to $15.7 billion in May • Even if the Governor’s tax measure passes in November, there will still be a significant State Budget problem • As a result, the Governor proposes: • More cuts to the non-Proposition 98 side of the Budget • More manipulations to reduce Proposition 98 actual funding • But, in the end, planned K-12 funding is much like the January proposal • Flat funding if the taxes pass • Big cuts if they don’t • 2012-13 will not be a good year for education funding • And failure of the taxes would make it a disaster

4. The May Revision • Despite claims of: • $6 billion more for schools! • 16% increase for schools! • Your district, your schools, your classrooms do not get one more dime whether the Governor’s taxes pass or not! • Our gain is the absence of yet another cut • The state has not provided a single new dollar to local schools since 2007-08

5. California’s Education SpendingContinues to Lag

6. Basic Aid Districts • SB 81 (Chapter 2/2012) included a provision of the “fair share” reduction for two years: • In 2011-12, the rate is 9.57%, which will be applied in 2012-13, which reflects a one-year adjustment to incorporate the midyear reduction • In 2012-13, the rate is 8.92%, which will be applied in 2013-14 • The “fair share” cut will be taken from basic aid school district unrestricted (supplemental and Tier III) and restricted (state categorical) funds in each respective fiscal year, as per current law • Three categorical programs, however, are exempt from the reduction: • After School Education and Safety (ASES) Program • QEIA • Child Care and Development

7. 2012-13 Key Budget Assumptions Following are key budget assumptions for 2012-13 based on the Governor’s Budget:

8. Average Daily Attendance

9. Unrestricted General FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

10. Components of the Ending Fund BalanceJune 30, 2012

11. Restricted General FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

12. Child Nutrition FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

13. Deferred Maintenance FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

14. Special Reserve – Non Capital FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

15. Special Reserve - Post Employment Benefits FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

16. Building Fund – Prop PRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

17. Special Reserve – Capital Facilities Fund Revenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

18. Special Reserve – Capital Facilities FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

19. Paul Ecke Central Trust Fund Revenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

20. Self Insurance FundRevenues, Expenditures, and Changes in Fund BalanceJune 30, 2012

21. Multi Year Projection

22. Multi Year Projection

23. Thank you