SMMUSD

1. SMMUSD Public School Finance Education 2012 Presented by the Financial Oversight Committee

2. Agenda • California EducationSpending • Poor Ranking in Nation • Why is this? • SMMUSD Revenue Breakout • SMMUSD Expenses Breakout • Why do we care?

3. California Education Spending • California public schools, unlike those in many other states, receive a majority of their dollars from the state budget, and the largest share of spending supports K-12 schools.

4. Poor Ranking in Nation California’s public schools are ranked: • 46 out of 50 states in K-12 spending per student in 2010-2011. (CA: $8,908, US: $11,764) • 50 out of 50 states in K-12 students per teacher. (CA: 20.5, US: 13.8) • 47 out of 50 states as a % of Personal Income. (CA: 3.27%, US: 4.29%) • 46 out of 50 states in K-12 students per administrator. (CA: 301, US: 203) *California Budget Project, School Finance Facts, October 2011

5. Why is this? • Serrano v Priest • Passage of Proposition 13 • California State Budget Cuts

6. Serrano V. Priest • 1976 California Supreme Court Decision. • Schools should be similarly funded. • Court found that schools’ dependence on local property taxes violated equal protection rights of students in districts with relatively low property wealth. • The State’s response was to establish limit on the combined state and local revenues received by a school district to equalize the funding available to high and low property wealth districts.

7. Passage of Proposition 13 • Passed in 1978, Prop 13 capped local property tax rate at 1%. As a result overall revenue potential decreased. • Prop 13 shifted how schools received their dollars. State started providing funding to School District at the established revenue limit based on socio-economic indicators. • Provided 2/3 vote requirement to increase taxes.

8. California Spending Per Student vs. Rest of Nation Proposition 13 enacted in 1978. Approx. $2,856 less

9. California Fiscal Condition • California State Budget Cuts - The State Legislature has cut overall General Fund spending by 20% since 07-08. • Potential cuts continue for 12-13 school year. Governor is proposing a $370 cut per student equating to $4MM for SMMUSD if tax initiatives fail.

10. SMMUSD Revenue Per Student(Total General Fund including Restricted) *SMMUSD 2010-2011 Unaudited Actuals

11. Revenue Break-out *SMMUSD 2010-2011 Unaudited Actuals

12. Where does the $ go? Out of the general fund, • Salaries and Benefits accounts for 87%, • Books and Supplies 3%, • Operating Expenses 10%.

13. The data sliced a different way: Of the general fund, • Instruction accounts for 82%, • Building & Facility costs account for 10%, • General Administration accounts for 8%.

14. Other Factors Affect Spending • Staffing Ratio History • Teacher Placement • Special Education Underfunding • 10-11 ~ $1,000 per student

15. Staffing Ratio - Primary

16. Staffing Ratio - Secondary

17. Highly Trained & Experienced Teachers • 57% of SMMUSD Teachers are on the top of the salary scale based on their years of experience and education level. • Less than 8% are in their early years of teaching. • As a result, SMMUSD pays out more $$ for salaries than a district with less experienced teachers. *SMMUSD 2010-2011 J-90

18. SMMUSD’s Depth of Educational Opportunities • Specialized Reading Teachers • Physical Activities Specialists • Comprehensive Special Education Programs and Services • Honors and Advanced Placement Courses • Summer School • Visual, Performing Arts, Music and Dance Programs • Progressive Professional Development • Technology infrastructure and classroom upgrades • Site-based Specialized programs (Magnet, SPARK, Valued Youth, etc.)

19. Why do we care? • Budget outlook continues to be grim and grimmer for the future. • SMMUSD cannot rely on the State or Federal government for additional support….in fact just the opposite. • The community of SMMUSD needs to continue to pull together to bring much needed additional support into the District through fundraising and taxes.