1. Budget Update February 21, 2012 1

2. Douglas County State Rescission $17.3 M District Increases in Costs** $4.4 M Total DCSD Reduction $21.7 M 2

3. Black Budget ItemsReduction Amount Central Office$2.0 M Transportation$1.0 M SBB Decrease – Secondary ($100/Pupil)$2.5 M TOSA Contract Day s$0.3 M One Year Reallocation of Performance Pay (Negotiated) $4.2 M Use of Fund Balance $11.7 M TOTAL$21.7 M 3

4. 4 Combined General Fund Ending Fund Balance FY 2011 (Reference pages 72 & 73 of CAFR) Non-spendable -Inventories & Prepaid Costs$762,782 Restricted (TABOR)$11,745,301 Assigned & Reported to: Insurance Risk Fund$783,884 Transportation Fund$249,425 Early Separation Agreement Commitment$4,759,164 Full Day Kindergarten Carry Over$4,490,780 School Carry Over$8,528,797 Department Carry Over$8,302,279 Unassigned$26,815,727 Total General Fund Balance$66,438,139

5. 5 Current Year (FY 2012) Budgeted Draw Down of Unassigned Fund Balance Last Year (FY 2011) Unassigned Fund Balance : $26.8 M Dollars “Assigned” to balance the FY 2012 Budget: $11.7 M Current Year (FY 2012) Budgeted Ending Fund Balance: $15.1 M

6. FY 2011 – 2012 Fund Balance Comparison 6 6

7. Next School Year (FY 2013) Budget Planning Item Description Worst CaseBest Case FY 2013 DCSD State Rescission* $7.5 M$0.00 M FY 2013 District Increases in Costs** $2.2 M FY 2012 One Time Use of Reserves $11.7 M FY 2012 Reallocated Pay for Performance Budget $4.2 M Total FY 2013 Budget Reduction $25.6 M$18.1 M 7 7

8. Risks Associated with Worst Case Scenario Senior Homestead Act: $7.5 M Non – Funding of Growth: $7.5 M ($124.40/student reduction) 8

9. FY 2013 Budget Plan Elementary Reduction$0 - $1.3 M Middle School Reduction$500,000 - $1.0 M HS Schedule Change Reduction$3.6 M – $5.7 M Central Administration Reductions$1.0 M Capital Reduction$2.0 M Cost of Business Budget Opportunities$5.0 M Negotiated Items $4.2 M - $6.0 M Student Growth - Administration $0.0 M - $3.6 M Total FY 2013 Budget Reduction$18.1 M - $25.6 M 9