1 SANTA CRUZ COUNTY OFFICE OF EDUCATION 2012/13 PROPOSED BUDGET OVERVIEW PRESENTED BY: MARY HART, ASSOCIATE SUPERINTENDENT/BUSINESS SVCS. JUNE 21, 2012 Santa Cruz County Office of Education Office of Education MICHAEL C. WATKINS, SUPERINTENDENT

PROPOSED BUDGET FOR 2012/13  Year-end expenditures have been estimated based on current knowledge.  The proposed 2012/13 Budget includes changes reflected in the May Revise.  Adjustments will be made after the State Budget is adopted. 2

3 GENERAL ASSUMPTIONS USED IN THIS BUDGET Based on the 2012/13 May Revise State Budget.Based on the 2012/13 May Revise State Budget. School Services of California has advised budgeting a COLA of 3.24% for revenue limit funding. The projected deficit increases to %. The net effect of these two changes will result in flat funding.School Services of California has advised budgeting a COLA of 3.24% for revenue limit funding. The projected deficit increases to %. The net effect of these two changes will result in flat funding. All state categorical funding has been projected at levels. This includes all Tier III Categorical programs.All state categorical funding has been projected at levels. This includes all Tier III Categorical programs and projections are based on the latest School Services of California Dartboard and projections are based on the latest School Services of California Dartboard.

4 Craft Budget Plans that do not rely on carryover funds. Budget for no salary increases (other than Step and Column). Budget for a 10% increase in Health and Welfare Costs. For areas affected by State Budget reductions, reduce expenditures to conform to new lowered revenues. DIRECTION PROVIDED TO DEPARTMENTS:

5 - General Fund Revenues remain relatively flat, decreasing from $43.1 million to $42.5 million. - General Fund Expenditures follow a similar trend, decreasing from $48.0 million to $46.6 million. RESULT:

6 ADA IMPACTS - Court/Community Schools - Court/Community Schools  ADA is projected at 2011/12 levels through the 2014/15 fiscal year. - Special Education  ADA is projected at 2011/12 levels through the 2014/15 fiscal year. - County-Wide ADA is projected at 2011/12 levels through the 2014/15 fiscal year. - ROP  ROP ADA is no longer collected by the state for funding purposes.

2011/12 ESTIMATED ACTUALS UnrestrictedRestrictedTotal Beginning Balance $16,261,905$5,304,486$21,566,390 Revenues & Transfers In $18,986,233$25,104,230$44,090,463 Expenditures & Transfers Out $21,870,393$26,221,521$48,091,914 Increase (Decrease) ($2,884,160)($1,117,291)($4,001,451) Designated Ending Balance $13,377,745$4,187,194$17,564,939 Undesignated Ending Balance $0

14 MYP ASSUMPTIONS - REVENUES  Budgeted COLA on state revenues at 2.4% for 2013/14 and 2.7% for 2014/15. Deficit remains at %. The ADA Revenue Limit is projected to remain flat through 2014/15.  Federal funding is projected at 2012/13 levels through 2014/15.  Local revenues are projected at 2012/13 levels through 2014/15.

15 MYP ASSUMPTIONS - EXPENDITURES  Salary and benefit costs are expected to increase each year due to step and column.  Health & welfare costs are projected to increase 10% in both 2013/14 and 2014/15.  The majority of one-time expenses funded out of one-time federal job funding have been moved to Tier III funding sources.  Supply, material, and equipment budgets have been adjusted to reflect increases in state revenues.

GENERAL FUND THREE YEAR SUMMARY 2012/132013/142014/15 Beginning Balance $17,564,939$13,336,979$12,163,745 Revenues & Transfers In $42,459,503$43,129,915$43,916,141 Expenditures & Transfers Out $46,687,463$44,303,150$45,064,318 Increase (Decrease) ($4,227,960)($1,173,234)($1,148,179) Nonspendable Fund Balance $719,481$719,481$719,481 Restricted Fund Balance $2,314,793$1,481,719$626,550 Assigned Fund Balance $10,302,705$9,962,545$9,669,535

17 Support for Districts & Students: The Santa Cruz County Office has utilized a combination of on-going and one-time resources to fund a number of activities aimed at supporting both districts and students. These include:  Technology  District Site Improvements  Adult Education (GED & Preschool)  Digital Connections Project (21 st Century Learning)

18 Support for Districts & Students - continued  Arts, Arts Coordinator and a Summer Arts Institute and Student Art Shows  SELPA administration and staff  Professional Development in mathematics  College feasibility study for S4C and a PT Coordinator for two years to oversee the project  Tutorial and homework support in libraries  Gang suppression and prevention through BASTA

19 Support for Districts & Students - continued  Professional Development for District Business Personnel  Outdoor Education Program  AB430 Principal Training  Expanded career opportunities in local high school’s (ROP)  Increased support to districts participating in the New Teacher Project  Teacher professional development pertaining to Common Core

20 Support for Districts & Students - continued  Educational leaders from across the country  Online Learning Symposium  Collaborated with Santa Cruz County Symphony to provide musical opportunities  Mentorship and career panels for all secondary schools through Your Future is Our Business  Summer School Credit Recovery for nearly 1000 students  Address attendance and truancy (SARB)

 Increase science participation for under represented youth  Addressing the achievement gap through unique ELL strategies and support  Tutorial and homework support in the homeless shelters Support for Districts & Students - continued

22 RECOMMENDATION  Our recommendation to the Board is to adopt the 2012/13 proposed Budget.