School Funding: State Funded District How does it all work? Imagine a bucket. Each district has a different-sized bucket, representing its individualized funding entitlement. Revenues raised through local property taxes are dumped into the district’s bucket, and if the bucket is not filled all the way, then The State tops it off with state tax aid. Money from local property taxes Money from state State money tops off bucket Property taxes partially fill bucket 12/14/2016 HABLA

School Funding: Basic Aid District Funding Districts whose buckets are filled by local property taxes receive an additional $120 per ADA from the State These districts are called "basic aid districts" Each year, roughly 60 districts are categorized as basic aid. Because local property tax revenues fluctuate from year to year, some districts are basic aid one year but not necessarily the next. State funding 12/14/2016 HABLA

OGSD’s LCFF Entitlement Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 *EPA (Education Protection Account) fund is generated from Prop 30, and expected to be replaced by Prop 55. 12/14/2016 HABLA

General Fund Revenues 2016-17 First Interim Total General Fund Revenues = $110,305,771 Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

General Fund Expenditures 2016-17 First Interim Total General Fund Expenditures = $117,329,747 Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

Unrestricted General Fund Multi-Year Projections Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

Budget Challenges Enrollment decline Employee salary and benefit increase Annual Steps & Column increases Collective Bargaining Employee pension – STRS and PERS rates Cost of doing business contracted services Inflations – supplies, utilities, etc. Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

Enrollment Trend 12/14/2016 HABLA Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

Impact of Enrollment Loss Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

Facility Review 12/14/2016 HABLA

Enrollment Projections per Enrollment Projection Consultant, as presented to the Board on March 24, 2016.

Elementary School Capacity Total Elementary Classrooms 478 Regular Education Classrooms Utilized 308 Special Education Classrooms Utilized 25 - Flexibility Factor of 5% 24 Un-Utilized Classrooms 121 Excess Capacity @ 24:1 in 121 rooms 2,904 seats Total Elementary Capacity Capacity Regular Ed @ 26:1 & 453 classrooms 11,778 Capacity Special Ed @ 15:1 & 25 classrooms 375 Total Capacity @ 478 Classrooms 12,153 Current Enrollment 8,039

Intermediate School Capacity Total Intermediate Classrooms 119 Regular Education Classrooms Utilized 100 Special Education Classrooms Utilized 8 Flexibility Factor of 5% 5 Un-Utilized Classrooms 6 Excess Capacity @ 32:1 with 6 classrooms 192 Total Intermediate Capacity Capacity Regular Ed @ 32:1 & 111 classrooms 3,552 Capacity Special Ed @ 15:1 & 8 classrooms 120 Total Capacity @ 119 Classrooms 3,672 Current Enrollment 2301

Total District Classroom Capacity Total District Excess Classrooms Total Elementary Excess Classrooms 121 Total Intermediate Excess Classrooms 6 127

Facility Use Assumptions Not counted as potential classroom space Library Staff Room Leased spaces Small offices and Small Resource Rooms

Cost of Unused Space Operating Costs Utilities cost (Average $4,920 p/classroom) $624,840 Indirect Cost $ 41,300 Total Operating Cost* $666,140 Potential Loss of Revenue Estimated Lease Revenue Sq. ft. $2.75 Unused Space/Square ft. (127 * 960 sq. ft.) 121,920 sq. ft. Total Potential Loss Revenue $335,280 Total Cost of Unused Space $1,001,420 *Operating cost does not include cost of personnel

Next Steps Budget Advisory Committee – recommendations to be made in February, 2017 Special Education Study – pending report from School Services of California Child Nutrition Services Program Review – in progress Maximizing Resources Grant applications Lease renewals Facility and Field Use – fees structure revision pending Bonding capacity – EC 15260, 15268 & 15102 (2009.05-15); waiver application to State Board of Education (SBE) under EC 33050-33053 12/14/2016 HABLA

Thank You 12/14/2016 HABLA