Cambrian School District Second Interim Report March 9, 2010 Presented by: Julie Swanson Chief Financial Officer

Second Interim Report ● School boards are required to certify the projected year end and subsequent years’ financial condition twice a year ■ Known as Interim Reports ● The Second Interim is a snapshot of the District’s financial position as of January 31, 2010 ● Included in this report is a multiyear projection for fiscal years and

Revenue Changes from Adopted Budget to Second Interim Report Rev. Limit Federal $714,401 Other State $165,896 Other Local $611,036 Total Revenue Changes from Adopted Budget to Second Interim Report 2

Expenditure Changes from Adopted Budget to Second Interim Report 3 1xxx $129,614 2xxx $13,681 3xxx $60,604 4xxx $1,377,881 5xxx 6xxx $0 7xxx $0 Total $1,465,167

Budget Assumptions and Multiyear Projections ● : 4.25% unfunded revenue limit cost-of-living adjustment (COLA) with %deficit ● : -0.38% revenue limit COLA with ongoing % deficit ● : 1.80% revenue limit COLA* with ongoing % deficit ● From to : Revenues in other state funding remain “flat” – no COLA applied ● ADA projected to be static in “out” years ● Deficit spending continues ● Reserves continue to decline due to a structural gap between revenue and expenditures 4 *Funding subject to the state’s ability to pay

Multiyear Projections ● The Second Interim Report includes financial projections for and based on the Governor’s January Budget Proposal and the 2010 School Services of California, Inc., Financial Projection Dartboard ● The multiyear projections do not reflect changes to the budget for preliminary notices recommended for Board action tonight ■ Changes to budget assumptions for the multiyear projections will be made once the Board has taken action 5

Certification of Financial Condition ● The recommendation from staff to the Board is to approve the Second Interim Report as submitted ■ Positive Certification  This means that based upon current projections the District will meet its financial obligations for the current-fiscal year and subsequent two fiscal years 6

Timeline for Action Month/YearActivitiesResponsibility November 2009Reconvene BICSuperintendent December 2009 Update to Board on BIC progress First Interim Report Superintendent CFO January 2010 Governor’s Budget Proposal Board Budget Workshop Recommendations for reductions Itemized list of proposed reductions with savings estimates CFO Supt./CFO February 2010Board Action for ReductionsBoard March 2010 Second Interim Report Board Action for reductions Issue layoff notices – certificated CFO Board Human Resources April 2010Issue layoff notices – classifiedHuman Resources May 2010Governor’s May RevisionCBO June 2010Adopt Budget with reductionsBoard July 2010 ?State Budget adoptedCFO 7 *Items in italics are complete

Next Steps ● Budget must be adopted by the District prior to June 30, 2010 ■ State Budget will most likely not be in place by then ● Developing the budget requires: ■ Clarifying assumptions  How much revenue?  How will expenditures change? ● Once the State Budget is adopted, the District makes adjustments to its budget 8

Questions ● Questions? 9