Sonoma Valley Unified School District September 2010 Budget Update

Tax Projections Tax projections continue to be one of the most critical variables in future year budget projections. The Adopted budget assumed a tax growth of 2% for , , and

The “Fair Share” Variables 5.81% “Fair Share” State Cut - $1,700,000 - Included in projections for all three years - Expected to continue beyond % “Fair Share” State Cut - $1,105,000 - Included in projections for all three years - Expected to be included in State Budget

“ ” When a number is in these brackets it means the number is a negative. Note:

Multi-year Deficit Scenarios

Deficit Projection without 5.81% Fair Share in future years $1,140,000 $5,425,000 $2,695,000 $1,410,

Deficit Projection without 3.85% in all years $5,330,000 $2,005,000 $1,735,000 $1,590,

Deficit Projections with both fair share variables removed

Available One Time Funds Ending Balance (Fund 01)$3,131,000 One-Time SFSF Funds$1,125,000 3% Reserve (Fund 17)$1,169,000 Tax Reserve (Fund 17) $985,000 Deferred Maint (Fund 17) $1,643,000 Adult Education (Fund 17)$500,000 RDA Funds (Fund 40)$1,050,000 OPEB Reserve (Fund 67)$565,000

How much to cut? Uncertainty surrounding: State Budget Local Taxes Measure H

How much to cut? Recommend cutting $1,595,000 in Use available one-time reserves to cover an ongoing $1,245,000 Deficit while waiting for more information. More cuts may be needed in

Revised Tax Assumptions Tax Loss for % Tax Growth for % Tax Growth for These revisions will be included in the First Interim Report at the November Board Meeting

Revised Deficit Assumptions Deficit $2,695, Deficit$1,245, Deficit - 0 -

Revised Deficit Projections $1,515,000 Cuts $1,595,000 Cuts

Revised Multi Year Projection Deficit Less One-time SFSF Funds $1,125,000 Remaining Deficit Beg Fund Balance$3,131,000 Less Remaining Deficit Ending Fund Balance$1,561,000 SFSF one-time funds and Ending Balance funds will be used to augment the General Fund by $2,695,000 in

Revised MYP cont Deficit (pre-cuts) Cuts$1,595, Deficit (post-cuts) Beginning Fund balance$1,561, Deficit Ending Fund Balance$316,000 Ending Balance funds will be used to augment the General Fund by $1,245,000 in

Revised MYP cont Deficit (pre-cuts) Cuts$1,515, Deficit (post-cuts) $0 There will be no deficit in after necessary cuts are made.

Recommended Course of Action Identify $1,595,000 of cuts to implement in Wait to see the state budget. Passage of Measure H

Budget Reduction Process November Meetings for initial Staff Input (2 Meetings) Meetings for Parent/Student/Community Input (3 Meetings) December Meetings for additional Staff Input (2 Meetings) Presentation to Board of Trustees on possibilities and feedback (Regular December Board Meeting) January Presentation of Staff Recommendations to Board of Trustees (Regular January Meeting) February Board of Trustees take action on budget reductions

Questions?