FISCAL YEAR Financial Report December 2007 Year To Date

DECEMBER 2007 EXECUTIVE SUMMARY $332M GOB Budget/Total Budget - $447M GOB revenues currently tracking below budget budget at $0.7M Total District Cash - $135.5M City holding over $25M in protested taxes YEAR-TO-DATE SUMMARY Non-Payroll Expenditures reflect $2.9M positive variance, with transportation tracking $0.7M over budget

EXECUTIVE SUMMARY - Continued Total GOB Expenditures currently tracking below budget by $1.6M Non-General Operating Funds o Revenues tracking close to expenditures o Food Service deficit is at $0.2M Budget over-runs $1.M revenue shortfall $5M increase in salary & benefits due to increase in certificated staffing and health benefits Shortfall minimized (e.g. contingencies, frozen positions) YEAR-END PROJECTIONS

EXECUTIVE SUMMARY - Continued CONCERNS AND RISKS STC protested tax rulings Equitable distribution of funds to charter schools Food Service profit margin Technology budget Garage repairs

ST. LOUIS PUBLIC SCHOOLS GENERAL OPERATING FUNDS FINANCIAL REPORT DECEMBER 2007 In Thousands JULY 2007 BEGINNING FUND BALANCE (AUDITED) ($12,273) APPROVED REVENUE BUDGET$332,610 YTD REVENUES$124,030 APPROVED EXPENDITURE BUDGET$332,188 YTD EXPENDITURES $159,779 JUNE 2008 ENDING FUND BALANCE ($15,973) (DECEMBER PROJECTION)

ST. LOUIS PUBLIC SCHOOLS STATE FUNDING CONCERNS WITH CHARTER SCHOOL PAYMENTS Inequities with the payment methodology used by DESE: SLPS not receiving full credit for its student count from the 2 nd preceding year ($4.3 M). The State is converting the desegregation sales tax revenue to a levy in order to provide additional funding to the charter schools ($4 M). DESE is over-allocating Prop C funds to the charter schools ($2.8 M). DESE allocating disproportionate amount of categorical aid to the charter schools (e.g. exceptional pupil only 3.2% in FY06, now 17.9%). This critical loss of revenue is contributing to the St. Louis Public Schools financial stress and deficit spending in the general operating funds.

GOB UNRESTRICTED FUND BALANCE In Thousands -$37,848 -$25,987 -$24,915 -$12,273 FY 2004 FY 2005 FY 2006FY $15,973 FY 2008 Projected

GENERAL OPERATING FUNDS BUDGET TO ACTUAL REVENUES DECEMBER 2007 In Thousands Annual GOB Revenue Budget $332,610 December YTD Budget $124,709 December YTD Actual $124,030 -$2,918 $16 $2,195 $29 - $586 Local County State Federal Charter Schools

GENERAL OPERATING FUNDS BUDGET TO ACTUAL EXPENDITURES DECEMBER 2007 In Thousands Annual GOB Expenditure Budget $332,188 December YTD Budget $161,343 December YTD Actual $159,779 -$1,374 $955 -$738 $965 $9 $1,747 Salaries & Benefits Purchased Services Property Services Transportation Operational Expenditures Debt Obligations

$11.4 $2.5 $7.6 $10.7 $6.5 NON-GENERAL OPERATING FUNDS REVENUES AND EXPENDITURES DECEMBER 2007 In Thousands Capital Debt Federal Food Svc Trust