1. 1 SANTA CRUZ COUNTY OFFICE OF EDUCATION 2012/13 PROPOSED BUDGET OVERVIEW PRESENTED BY: MARY HART, ASSOCIATE SUPERINTENDENT/BUSINESS SVCS. JUNE 21, 2012 Santa Cruz County Office of Education Office of Education MICHAEL C. WATKINS, SUPERINTENDENT

2. PROPOSED BUDGET FOR 2012/13  Year-end expenditures have been estimated based on current knowledge.  The proposed 2012/13 Budget includes changes reflected in the May Revise.  Adjustments will be made after the State Budget is adopted. 2

3. 3 GENERAL ASSUMPTIONS USED IN THIS BUDGET Based on the 2012/13 May Revise State Budget.Based on the 2012/13 May Revise State Budget. School Services of California has advised budgeting a COLA of 3.24% for revenue limit funding. The projected deficit increases to 22.549%. The net effect of these two changes will result in flat funding.School Services of California has advised budgeting a COLA of 3.24% for revenue limit funding. The projected deficit increases to 22.549%. The net effect of these two changes will result in flat funding. All state categorical funding has been projected at 2011-12 levels. This includes all Tier III Categorical programs.All state categorical funding has been projected at 2011-12 levels. This includes all Tier III Categorical programs. 2013-14 and 2014-15 projections are based on the latest School Services of California Dartboard.2013-14 and 2014-15 projections are based on the latest School Services of California Dartboard.

4. 4 Craft Budget Plans that do not rely on carryover funds. Budget for no salary increases (other than Step and Column). Budget for a 10% increase in Health and Welfare Costs. For areas affected by State Budget reductions, reduce expenditures to conform to new lowered revenues. DIRECTION PROVIDED TO DEPARTMENTS:

5. 5 - General Fund Revenues remain relatively flat, decreasing from $43.1 million to $42.5 million. - General Fund Expenditures follow a similar trend, decreasing from $48.0 million to $46.6 million. RESULT:

6. 6 ADA IMPACTS - Court/Community Schools - Court/Community Schools  ADA is projected at 2011/12 levels through the 2014/15 fiscal year. - Special Education  ADA is projected at 2011/12 levels through the 2014/15 fiscal year. - County-Wide ADA is projected at 2011/12 levels through the 2014/15 fiscal year. - ROP  ROP ADA is no longer collected by the state for funding purposes.

13. 2011/12 ESTIMATED ACTUALS UnrestrictedRestrictedTotal Beginning Balance $16,261,905$5,304,486$21,566,390 Revenues & Transfers In $18,986,233$25,104,230$44,090,463 Expenditures & Transfers Out $21,870,393$26,221,521$48,091,914 Increase (Decrease) ($2,884,160)($1,117,291)($4,001,451) Designated Ending Balance $13,377,745$4,187,194$17,564,939 Undesignated Ending Balance $0

14. 14 MYP ASSUMPTIONS - REVENUES  Budgeted COLA on state revenues at 2.4% for 2013/14 and 2.7% for 2014/15. Deficit remains at 22.549%. The ADA Revenue Limit is projected to remain flat through 2014/15.  Federal funding is projected at 2012/13 levels through 2014/15.  Local revenues are projected at 2012/13 levels through 2014/15.

15. 15 MYP ASSUMPTIONS - EXPENDITURES  Salary and benefit costs are expected to increase each year due to step and column.  Health & welfare costs are projected to increase 10% in both 2013/14 and 2014/15.  The majority of one-time expenses funded out of one-time federal job funding have been moved to Tier III funding sources.  Supply, material, and equipment budgets have been adjusted to reflect increases in state revenues.

16. GENERAL FUND THREE YEAR SUMMARY 2012/132013/142014/15 Beginning Balance $17,564,939$13,336,979$12,163,745 Revenues & Transfers In $42,459,503$43,129,915$43,916,141 Expenditures & Transfers Out $46,687,463$44,303,150$45,064,318 Increase (Decrease) ($4,227,960)($1,173,234)($1,148,179) Nonspendable Fund Balance $719,481$719,481$719,481 Restricted Fund Balance $2,314,793$1,481,719$626,550 Assigned Fund Balance $10,302,705$9,962,545$9,669,535

17. 17 Support for Districts & Students: The Santa Cruz County Office has utilized a combination of on-going and one-time resources to fund a number of activities aimed at supporting both districts and students. These include:  Technology  District Site Improvements  Adult Education (GED & Preschool)  Digital Connections Project (21 st Century Learning)

18. 18 Support for Districts & Students - continued  Arts, Arts Coordinator and a Summer Arts Institute and Student Art Shows  SELPA administration and staff  Professional Development in mathematics  College feasibility study for S4C and a PT Coordinator for two years to oversee the project  Tutorial and homework support in libraries  Gang suppression and prevention through BASTA

19. 19 Support for Districts & Students - continued  Professional Development for District Business Personnel  Outdoor Education Program  AB430 Principal Training  Expanded career opportunities in local high school’s (ROP)  Increased support to districts participating in the New Teacher Project  Teacher professional development pertaining to Common Core

20. 20 Support for Districts & Students - continued  Educational leaders from across the country  Online Learning Symposium  Collaborated with Santa Cruz County Symphony to provide musical opportunities  Mentorship and career panels for all secondary schools through Your Future is Our Business  Summer School Credit Recovery for nearly 1000 students  Address attendance and truancy (SARB)

21.  Increase science participation for under represented youth  Addressing the achievement gap through unique ELL strategies and support  Tutorial and homework support in the homeless shelters Support for Districts & Students - continued

22. 22 RECOMMENDATION  Our recommendation to the Board is to adopt the 2012/13 proposed Budget.