State Budget Update for Adelanto School District May 19, 2009 Presented by Ron Bennett President and CEO

1 Overview The 2009 Budget Act Revenue Projections Dependence of May 19 th Special Election Proposition 98 Drops Like a Rock Record Deficits for Schools What Adelanto School District Loses Federal Funding Board Responsibilities

Budget Act Projections

3 Impact of Uncertain Election Results Much of the State Budget is contingent upon success of ballot measures  If Proposition 1A, relating to the Budget Stabilization Fund, fails: K-14 schools will not automatically get the additional $9.3 billion in maintenance factor amounts  Will pursue those monies through alternative means Temporary tax increases included in ABX3 3 will expire one or two years earlier than if voters approve Proposition 1A  The Budget relies on issuance of Lottery securitization bonds to generate $5 billion – creates a shortfall if Proposition 1C fails But credit markets may not be interested Recent poll indicates that 61% of likely voters oppose the idea of borrowing against future State Lottery income  Voters may not want to divert monies from initiatives they previously passed If Propositions fail, the May Revision could include more cuts

Proposition 98 Guarantee  No COLA  Revenue Limit Cut  Categorical Cut  February deferral  Special fund shift  “Settle-up” redesignation

Proposition 98 Guarantee * Includes adjustment for Lottery funds

6 Revenue Limit Deficit Factor

7 Effect on Adelanto SD Funded Base Revenue Limit Funded Base Revenue Limit Funded Base Revenue Limit Actual $315 COLA $315 COLA $250 COLA $5,582 $5,381 $5,434 Undeficited $5,582 Undeficited $5,897 Undeficited $6,147

8 Loss in Funding Base revenue limit (BRL) assuming average daily attendance (ADA) of 8,223  Adelanto loses $3,807,249 in  And an additional $6,298,818 in Actual funding received for will be $201 per student lower than  A real decrease of $1,652,823 from funding Additionally, Adelanto loses categorical funding  14.38% cut for  19.84% cut for

9 Additional Cuts in May Revision Best Scenario 1 – All Special Election Budget Measures Pass Base Revenue Limit Per-ADA Reduction YearElementaryHigh SchoolUnified $114$137$ $41$49$43 Worse Scenario 2 – All Special Election Budget Measures Fail Base Revenue Limit Per-ADA Reduction YearElementaryHigh SchoolUnified $215$258$ $18$21$19

10 The Federal Stimulus Package California schools are slated to get about $8.0 billion in one-time federal funding Three major pots:  IDEA (special education) $1.3 billion  Title I (socioeconomics) $1.1 billion  Stabilization (flexible) $4.9 billion  IDEA and Title I funds are tightly restricted  Stabilization funds depend on state applications

11 Understanding Roles Value Driven Beliefs Vision Policies Priorities Skill Driven Strategies Techniques Tactics Strategic Goals Success Indicators Governance Team Administration, Teachers, Staff How What

12 I.THE TRUSTEE - INDIVIDUAL'S ATTITUDE II.THE GOVERNANCE TEAM - AT THE BOARD TABLE III.THE BOARD’S RESPONSIBILITIES I keep learning and achievement for all students as the primary focus. I value, support, and advocate for public education. I respect differences of perspective and style on the board and among staff, students, parents, and the community. I understand that manner and behavior make a difference. I keep confidential information confidential. I commit the time and energy necessary to be an informed and effective leader. I understand the role and responsibilities of the board. I understand that authority rests with the board as a whole. I work hard to build and sustain an effective governance team. T T T T T S ACSA Superintendent’s Governance Standards Unity of Purpose Role Culture Structure & Process We keep the district focused on learning and achievement for all students. We communicate a common vision. We are focused, remain on task, and are consistent. We operate openly, with trust and integrity. We govern in a dignified and professional manner, treating everyone with civility and respect. We govern within board-adopted policies and procedures We take collective responsibility for the board’s performance. We periodically evaluate our own effectiveness. We ensure opportunities for the diverse range of views in the community to inform board deliberations. We set the direction. We establish the structure. We provide support. We ensure accountability. We act as community leaders. Job Areas Setting the District’s Direction Student Learning and Achievement Finance and Facilities Human Resources Policy and Judicial Review Collective Bargaining Community Relations and Advocacy STUDENT LEARNING AND ACHIEVEMENT Current Trends and Issues in Public Education System Revision 8 – January 2005 © 2005 California School Boards Association CSBA’s Effective Governance System