1. ENCINITAS UNION SCHOOL DISTRICT BUDGET PRESENTATION May 8, 2012

2. 2012 / 2013 BUDGET - It’s Complicated

3. YOU HAVE TO START WITH THE CATEGORICALS... EUSD is a basic aid district The State can’t touch our property taxes so all of their reductions affect us through categorical budgets Some categorical budgets just pay for specific programs Other categorical budgets bleed over into district general fund spending (CSR and special education for instance) The State can only take all of our sweepable categoricals or our excess basic aid dollars whichever mark the District hits first

4. CATEGORICAL REDUCTIONS Ongoing Fair Share $ 2,959,895 Transportation Fair Share $ 215,687 Trigger Cut $ 1,965,418 TOTAL $ 5,141,000

5. IMPACT OF CATEGORICAL CUTS Total Available Categorical Sweep Amount $ 4,551,375 School Site Reductions $ 297,007 Educational Services Reductions $ 1,642,680 District Reductions $ 2,575,955 Class Size Reduction Deferred Maintenance PAR

6. NEXT - CATEGORICAL SHIFTS TO DISTRICT BUDGET EIA, TITLE 1, TITLE 3, AND SLP Budgets all must be adjusted to reflect new regulations - Critical jobs must therefore be passed over to the District budget Net impact to District budget - $ 277,011

7. DISTRICT BUDGET BALANCING ACT

8. DISTRICT BUDGET IMPACTS Fair Share Cuts $ 2,575,955 Categorical Job Shifts $ 277,011 Step and Column $ 605,080 Insurance $ 50,000 Utilities $ 138,000 Structural Deficit $ 350,000 TOTAL $ 4,209,299

9. ADDRESSING THE PROBLEM SHORTFALL $ 4,209,299 REVENUE INCREASES Property taxes $ 429,000 NCCSE Equalization $ 56,646 Mental Health Funds $ 120,000 TOTAL $ 605,646

10. ADDRESSING THE PROBLEM SHORTFALL $ 4,209,299 REVENUE INCREASES $ 605,646 DIFFERENCE $ 3,603,653 Now it’s time to cut...

11. PROPOSED BUDGET REDUCTIONS DEPARTMENTAL CUTS Business Services $ 101,844 Special Education $ 81,000 Administrative Services $ 198,422 Superintendent $ 55,601 Board $ 19,480 Deferred Maintenance $ 197,931 TOTAL $ 709,908

12. REMAINING DEFICIT SHORTFALL $ 4,209,299 INCREASED REVENUES $ 605,646 DEPARTMENT REDUCTIONS $ 709,908 AMOUNT LEFT TO ADDRESS $ 2,893,745

13. PROPOSED BUDGET REDUCTIONS Classified Reductions TBD Certificated Reductions 24-1 K-3 class size increase $ 416,862 27-1 K-3 class size increase $ 1,092,989 Difference $ 676,127

14. OTHER CONSIDERATIONS... Teachers and District negotiating on furloughs Management has agreed to accept whatever teachers approve Classified to begin discussions next week Furlough Savings per day Teachers $ 175,000 ManagementClassified TOTAL PER DAY

15. WILD CARDS State Budget - May Revision on May 14 Already about $ 3 Billion short in budget Projected shortfall through 2013 - $ 6 Billion + Governor’s Initiative - no additional cuts but no new money Munger Initiative - Losing in polls, sites get funds Weighted funding plan

16. WILD CARDS Fair Share Issues State has already taken all tier 3 categoricals away We still owe them more in Fair Share State can only take Fair Share or return you to Revenue Limit State now looking at special education dollars could be $600,000 this year, 1.6 million next

17. WILD CARDS Pacific View Energy Savings

18. NEXT STEPS May Revision Budget Negotiations with Teachers and Classified Refinement of Budget Estimates District Budget Adoption 2-3 Year Plan Concerns - Educational Services, Special Education, NCCSE, Economic Uncertainties, weighted formula

19. QUESTIONS?