1. Anaheim City School District
Budget Update: Governor’s Proposals for the State Budget and K-12 Education
January 23, 2012

2. Presentation Overview1
Presentation Overview
Review of First Interim: Best and Worst Case Scenarios
Governor’s Proposals for the State Budget and K-12 Education
Historical Analysis of District Revenue and Expenditures
Multi-Year Projection
ACSD Budget Solutions Implemented
Cash Deferrals Continue
Next Steps

3. Multi-Year Projections-General Fund Combined
At First Interim Presentation-December (Best Case) 2
First Interim
Projected
Beginning Balance, July 1
$21.2 Mil
$19.0 Mil
$4.9 Mil
Total Revenue (Projected)
$161.6 Mil
$156.1 Mil
$160.0 Mil
Total Expenditures (Projected)
$163.8 Mil
$170.2 Mil
$171.7 Mil
Estimated Ending Balance June 30
-$6.8 Mil
Less Set Aside for Economic Uncertainties 3%
$5.1 Mil
Less Designated Funds
$3.0 Mil
$2.9 Mil
Undesignated Funds Available
$11.1 Mil
-$3.1 Mil
-$14.9 Mil

4. Total Possible Loss of $11.1 Million over 3 Years
First Interim Assumptions-Worst Case Scenarios
December 2011
First Interim
Projected
Projected
Mid-Year Trigger Cuts
-$5.1 Mil
Unfunded COLA
-$2.9 Mil
-$3.1 Mil
Total Possible Loss of $11.1 Million over 3 Years

5. Multi-Year Projections-General Fund Combined
At First Interim Presentation in December (Worst Case) 4
First Interim
Projected
Beginning Balance, July 1
$21.2 Mil
$13.9 Mil
-$3.1 Mil
Total Revenue (Projected)
$156.5 Mil
$153.2 Mil
$156.9 Mil
Total Expenditures (Projected)
$163.8 Mil
$170.2 Mil
$171.7 Mil
Estimated Ending Balance June 30
-$17.9 Mil
Less Set Aside for Economic Uncertainties 3%
$4.9 Mil
$5.1 Mil
Less Designated Funds
$3.0 Mil
$2.9 Mil
Undesignated Funds Available
$6.0 Mil
-$11.1 Mil
-$26.0 Mil

6. Main Parts of the Governor’s Proposed Budget5
Main Parts of the Governor’s Proposed Budget
No Funding for Transitional Kinder
Elimination of all Transportation Funding (-$1 Mil per year)
Unfunded COLA (-$2.9 Mil per year)
Creation of a “Weighted Revenue Limit” with more money going to school districts with high populations of Free and Reduced Students and English Language Learners ($?.?)
Many categorical programs to be folded into the Weighted Revenue Limit (-$?.?)
November Election to raise $7 Billion for K-14 public education (-$7.0 Mil per year)

7. Total Possible Loss of $22.7 Million over 3 Years6
Governor’s Budget Assumptions-Worst Case Scenarios
January 2012
Projected
Projected
Mid-Year Trigger Cuts
-$0.2 Mil
50% Reduction to Transportation
-$0.5 Mil
100% Reduction to Transportation
-$1.0 Mil
Unfunded COLA
-$2.9 Mil
-$3.1 Mil
Failed Ballot Measure ($370 per ADA (Student))
-$7.0 Mil
Total Possible Loss of $22.7 Million over 3 Years

8. Since the Governor’s Proposal7
Since the Governor’s Proposal
In December 2011, ACSD was planning for a three-year worst case scenario (-$11.1 Mil)
After Governor’s Proposal in January 2012
Worst case Scenario: (-$22.7 Mil)
Trigger Cuts (-0.7 Mil)
Transportation cut in and (-$2 Mil)
Unfunded COLA (Cost of Living Adjustment) in and (-$6 Mil)
Trigger cuts in and due to failed election (-$14 Mil)
Best case Scenario:
No cut to transportation in and (Flat Funding)
Funded COLA (Cost of Living Adjustment) in
Election is Successful (Flat Funding)

9. Historical Analysis: ACSD 2007-2008
Actual
Revenue Per ADA
Expenditures Per ADA
$9,012
$9,108
ACSD Beginning Balance: $34.6 Mil
ACSD Ending Balance: $32.7 Mil

10. Historical Analysis: ACSD 2008-2009
Actual
Revenue Per ADA
Expenditures Per ADA
$9,042
$9,295
Assistance
Took from Fund 14: $1.0 Mil
Federal ARRA Funds: $6.3 Mil
ACSD Beginning Balance: $32.7 Mil
ACSD Ending Balance: $27.9 Mil
Designated Funds: -$18.1 Mil
Undesignated Funds: $9.8 Mil
Without Assistance
Revenue Per ADA
Expenditures Per ADA
$8,653
$9,295
ACSD Ending Balance Without Assistance: $20.6 Mil
Designated Funds: $18.1 Mil
Undesignated Funds: $2.5 Mil

11. Historical Analysis: ACSD 2009-2010
Actual
Revenue Per ADA
Expenditures Per ADA
$8,257
$8,803
ACSD Beginning Balance: $27.9 Mil
ACSD Ending Balance: $17.8 Mil
Designated Funds: -$8.6 Mil
Undesignated Funds: $9.2 Mil
Assistance
Took from Fund 67: $2.0 Mil
Federal ARRA Funds: $8.3 Mil
Increased Class Size: $2.0 Mil
Reduced Positions: $1.0 Mil
Without Assistance
Revenue Per ADA
Expenditures Per ADA
$7,660
$8,910
ACSD Ending Balance Without Assistance: $4.5 Mil
Designated Funds: $8.6 Mil
Undesignated Funds: -$4.1 Mil

12. Historical Analysis: ACSD 2010-2011
Actual
Revenue Per ADA
Expenditures Per ADA
$8,062
$7,876
Assistance
Took from Fund 67: $2.0 Mil
Furlough Days: $4.5 Mil
Increased Class Size: $5.3 Mil
Reduced Positions: $7.4 Mil
ACSD Beginning Balance: $17.8 Mil
ACSD Ending Balance: $21.2 Mil
Designated Funds: -$7.8 Mil
Undesignated Funds: $13.4 Mil
Without Assistance
Revenue Per ADA
Expenditures Per ADA
$7,911
$8,749
ACSD Ending Balance Without Assistance: $2.0 Mil
Designated Funds: $7.8 Mil Undesignated Funds: -$5.8 Mil

13. Projection: ACSD 2011-2012 12 Projected Revenue Per ADA
Expenditures Per ADA
$8,710
$8,731
Assistance
Took from Fund 67: $2.0 Mil
Federal Jobs Money: $3.4 Mil
Furlough Days: $2.5 Mil
Increased Class Size: $5.3 Mil
Reduced Positions: $7.4 Mil
ACSD Beginning Balance: $21.2 Mil
ACSD Projected Ending Balance:$20.8 Mil
Designated Funds: -$8.0 Mil
Undesignated Funds: $12.8 Mil
Projected
Revenue Per ADA
Expenditures Per ADA
$8,336
$9,455
ACSD Ending Balance Without Assistance: $0.2 Mil

14. Projection: ACSD 2012-2013 13 Projected Revenue Per ADA
Expenditures Per ADA
$7,847
$8,933
Assistance
Increased Class Size
( Level): $2.0 Mil
Reduced Positions Continued $7.4 Mil
Projected Beginning Balance: $20.8 Mil
Projected Ending Balance: $0.4 Mil
Designated Funds -$8.0 Mil
Undesignated Funds -$8.4 Mil
Projected
Revenue Per ADA
Expenditures Per ADA
$7,777
$9,439
ACSD Ending Balance Without Assistance: -$9.8 Mil

15. Mid-Year Cuts and the Governor’s Proposed Budget for Anaheim City School District (In Millions) 14

16. Revenue and Expenditure Comparisons15
Revenue and Expenditure Comparisons
Revenue Per ADA
Expenditures Per ADA
Deficit Spending (In Millions)
$9,012
$9,108
$1.9
$8,062
$7,876
-$3.5 *
$8,710
$8,731
$0.4 *
$7,847
$8,986
$21.2 *
$7,940
$8,996
$19.8
Beginning in , ACSD will have a $21.2 Million Deficit Gap if the Election in November fails
If the Election is successful, the Deficit Gap will still be $14.2 Million per Year
(*Projected)

17. What has ACSD done to Weather the Storm?16
What has ACSD done to Weather the Storm?
Taken and Borrowed
Used $7 million from ACSD funds (not returned)
Borrowed $29 million to deal with Cash Deferrals (paid back)
Found ways to increase Revenue
Increased Student Attendance (From 96.25% to 97.11%)
Increased MAA Participation (From $138 K to $1.1 Mil)
Found ways to reduce Spending
Reduced Positions (Over 230 Positions)
Implemented Furlough Days (9 days in & 8 days in )
Increased Class Size (From 20:1 to 28:1 in 1st and 2nd Grades)
Monitored Spending to Maximize Savings

18. Cash Deferrals Continue17
Cash Deferrals Continue
Cash deferrals for ACSD result in a $20 million cash deferral from to
The cash deferrals are expected to be paid by the end of August 2012.
ACSD is forced to borrow cash
ACSD borrowed $16 million for one year
ACSD borrowed $13 million for 10 months
ACSD must borrow between $15 and $20 million to meet payroll obligations during the year
ACSD has a good credit rating however the cost to borrow has been on average $200,000 per year for the last 2 years

19. Next Steps 18 Present Second Interim Report in March
Need to identify and approve $8.4 Mil in Budget Reductions
Plan for the Worst and Hope for the Best
Requires the Creation of Budget based on Worst Case Scenario
Develop Restoration Plans should the Election Pass
Continue to Maximize Revenue
Continue to Minimize Expenditures
Closely Monitor Cash Flow
Present Third Interim Report in May
Adopt ACSD Balanced Budget for by July 1, 2012