1. FISCAL YEAR 2007-2008 Financial Report Year Ended June 30, 2008

2. ST. LOUIS PUBLIC SCHOOLS GENERAL OPERATING FUNDS FINANCIAL REPORT Year Ended June 30, 2008 In Thousands JULY 2007 BEGINNING FUND BALANCE (AUDITED) ($12,273) APPROVED REVENUE BUDGET$332,610 YTD REVENUES$341,777 APPROVED EXPENDITURE BUDGET$332,188 YTD EXPENDITURES $337,638 Non-GOB TRANSFER $ 1,703 JUNE 30, 2008 ENDING FUND BALANCE ($10,509) PRIOR YEAR ADJUSTMENT ( $672)

3. JUNE 2008 EXECUTIVE SUMMARY $332.6M GOB Budget/Total Budget - $447.1M GOB Revenues $9.2M better than budget Local Revenue, +8.2M: higher property tax collection rate (92.8% vs. 90% budgeted), higher interest income and indirect revenue State Revenue, + 3.2M: higher basic formula funding and transportation Federal Revenue, -2.7M: Medicaid, ERATE County Revenue, +.5M GOB Expenditure $5.5M over budget $9.8M increase is salaries and benefits due to higher certified staffing, substitute teacher and health care benefits Non-Payroll Expenditures currently reflect $4.3M positive variance, with transportation tracking $1.7M over budget Total District Cash - $169.3M YEAR-TO-DATE SUMMARY

4. EXECUTIVE SUMMARY - Continued Non-General Operating Funds Revenues tracking $5.3M higher than expenses Food Service deficit - $0.6M Special Education deficit - $1.1M Known shortfalls eliminated Contingencies Frozen positions Cost containments Central Office spending freeze No deficit spending (based on known obligations) Revenue is 2.4M in excess of expenses

5. EXECUTIVE SUMMARY - Continued CONCERNS AND RISKS State Tax Commission protested tax rulings Equitable distribution of funds to charter schools Charter School Enrollments Food Service profit margin Legal settlements Transportation Budget creeps

7. GOB UNRESTRICTED FUND BALANCE In Thousands -$37,848 -$25,987 -$24,915 -$12,945 FY 2004 FY 2005 FY 2006FY 2007 -$10,509 FY 2008 Unaudited

8. St. Louis Public Schools GOB Cash Balances July 07 thru June 08 Millions 35 36 22 6 -13 8 7374 54 44 19 31 July August September October November December January February March April May June

10. Saint Louis Public Schools Fiscal Year 2009 Amended Budget