BOARD OF EDUCATION PITTSBURG UNIFIED SCHOOL DISTRICT FIRST INTERIM BUDGET REPORT DECEMBER 11, 2013 Presented by: Enrique E Palacios, Deputy Superintendent Allan Garde, Acting Director of Finance Presented by: Enrique E Palacios, Deputy Superintendent Allan Garde, Acting Director of Finance

National and State Economies 2

Real Gross Domestic Product Projected to Grow About 3 Percent Annually Percent Change From Prior Year 3

Unemployment Rate Projected to Steadily Decline Over Period 4

Personal Income Projected to Grow About 5 Percent Annually Percent Change From Prior Year 5

Home Inventories Have Fallen Significantly Number of Months Needed to Sell All For-Sale Homes, If Current Number of Sales Per Month Continues 6

Residential Construction Projected to Rise Over Period 7

State Revenues Personal Income Tax Revenue to Grow More in Initial Years of Period General Fund and Education Protection Account Combined (In Billions) 8

State Revenues Sales Tax Revenues Projected to Grow Over Period General Fund and Education Protection Account Combined (In Billions) 9

State Revenues Corporate Tax Revenues Projected to Grow Steadily Over Period (In Billions) 10

State Budget General Fund Condition Improving General Fund and Education Protection Account Combined(In Millions) 11

Education Budget Minimum Guarantee in and Up Combined $4.4 Billion (In Millions) 12

Proposition 98 Minimum Guarantee Projected to Grow Over Period (In Billions) 13

State Budget Process JANUARY 10 – GOVERNOR PRESENTS BUDGET PROPOSAL FEBRUARY – LEGISLATIVE ANALYST’S REVIEWS BUDGET FEBRUARY/MARCH – LEGISLATURE HOLDS BUDGET HEARINGS MARCH 15- PUSD BOARD ACCEPTS SECOND INTERIM MARCH 31-STATE BOE RELEASES LCAP TEMPLATE MAY 15 – GOVERNOR ISSUES MAY BUDGET REVISIONS JUNE – CONFERENCE COMMITTEE AND BIG FIVE NEGOTIATE BUDGET JUNE 15 – LEGISLATURE PASSES BUDGET JUNE 25- PUSD BOARD ADOPTS BUDGET JUNE 30 – GOVERNOR SIGNS BUDGET 14

Enrollment 15

ADA – Average Daily Attendance 16

Funding Per Average Daily Attendance 17

To Act Differently, We Must Think Differently © 2013 School Services of California, Inc. Policy Funding Program Rules Local Board Implementation School Site Performance Audits and Compliance Reviews Old System State of California Compliance Model New System Empowerment Model Board Revises Policy Results Reported to Public Local Board Empowers Schools State Provides Funding Local Board Sets Policy Community Involvement Focus on Students Student Achievement 18

Dartboard 19

Combined General Fund Revenue 20

General Fund Unrestricted Revenue 21

General Fund Restricted Revenue 22

Combined General Fund Expenditures 23

General Fund Unrestricted Expenditure 24

General Fund Restricted Expenditure 25

Combined General Fund – Multi-Year Projection 26

Unrestricted General Fund – Multi-Year Projection 27

Restricted General Fund – Multi-Year Projection 28

Next Steps SeptemberLCFF Board Study Session SeptemberConvene Budget Sub-Committee SeptemberTrain School Site Councils DecemberFirst Interim Budget Report 2014 JanuaryGovernor’s January Budget JanuaryEnrollment Projections MarchStart Contract Negotiations with PEA and CSEA MarchSecond Interim Budget Report MarchAdoption of LCAP Template by State Board of Education AprilDevelopment of Instructional Program Priorities MayGovernor’s May Revised Budget JuneAdopt Budget 2015 OctoberAdopt Technical Assistance and Intervention Evaluation Rubric by State Board of Education 29