1. Alliance Charter Academy Financial Update January 2015

2. OBJECTIVES Provide the ACA community a status of ACA’s financial position and outlook. Begin the dialogue of reviewing options for long-term financial stability of ACA.

3. QUICK FACTS 370 Students $2,202,000 State Funding (Excl. SPED) $5,952 Average Funding Per Student -2014-15 Budget -Current ADM for public school districts is $6,846. ACA is funded at 80% for Grades 1-8 ($5,477), and 95% for Grades 9-12 ($6,504) -Full ADM funding would be $2,533,000 – a difference of $331,000.

4. ACA FINANCIAL TRENDS

7. $759 per student

8. ACA FINANCIAL TRENDS

9. ACA will need to make some decisions as reserves are fully consumed. Options: 1.Adopt an break-even operating budget 2.Allow some or all of the facilities reserve ($343,000) to pay for operating deficits in the future. This would help with issue for 1-2 additional years, but ACA will need to get back to operating at break-even once these funds are exhausted. UNRESTRICTED RESERVES ARE RUNNING OUT

10. There are many options available to achieve a break-even budget (we were operating at this level through 2011-12.) Revenue: 1.Lobby to change the charter school funding model. 2.Write and obtain grants. 3.Partner with businesses for sponsored programs. 4.Fully develop fundraising options. 5.Seek donations from families and businesses. 6.Increase enrollment (this comes with added expenses) 7.Other ideas. ADOPTING A BREAK-EVEN OPERATING BUDGET

11. There are many options available to achieve a break-even budget (we were operating at this level through 2011-12.) Expenses: 1.It is more difficult to cut expenses than increase revenue. 2.Some expenses may need to be increased. (Are ACA’s salary levels equitable and sustainable?) 3.Full review of the organization is needed to identify ways to reduce expenses. ADOPTING A BREAK-EVEN OPERATING BUDGET

12. We need: 1.Your input and involvement. We want to hear your ideas. 2.Parents to advocate for ACA at the state legislature to improve funding for charter schools. 3.Your participation in fundraising. 4.$759 per student shortfall- we CAN DO THIS! NEXT STEPS