1. State Funding FONTANA UNIFIED SCHOOL DISTRICT 2011-2012 2 nd Interim Report March 7, 2012

2. Mid-Year Reductions Cut ADA funding Eliminated Transportation – Changed to Higher Deficit Factor (SB 81) Eliminated Funding for Transitional Kindergarten Proposed new Funding Formula for K-12 Education Potential ADA Reduction of $370/ADA Dependent on Increase in Taxes MAJOR CHANGES BY GOVERNOR

3. Funded ADA vs. P-2 ADA

4. ADA Comparison

5. Projected ADA for 2012-2013 based on P-1 ADA for 2011-2012 – 38,798.66 Potential ADA for 2012-2013 if Increase ADA for 2011-2012 – 39,254.38 Difference in Potential Increase in ADA – 455.72 Potential Revenue from increase in ADA – $2,210,013.28 Revenue Increase due to Increase in ADA

6. Budgeted1 st Interim2 nd Interim 2011-2012 $214,816,470.93$215,481,738.00$213,459,529.00 2012-2013 $221,343,261.75$218,765,025.00$198,108,039.00 2013-2014 $227,022,824.91$223,536,619.00$202,001,649.00 pg. 145pg. 102pg. 103 Unrestricted Revenue Comparison Budgeted1 st Interim2 nd Interim 2011-2012 $208,566,683.00$218,500,997.00$217,181,092.00 2012-2013 $222,866,304.00$224,123,428.00$219,767,699.00 2013-2014 $227,792,631.00$228,353,797.00$222,276,540.00 pg. 145pg. 102pg. 103 Unrestricted Expenditure Comparison

7. Changes In Revenue for 11-12 Adjusted ADA (-20.22) (-$104,398) Governor’s Trigger in Reduction of ADA $13 per Student (-$507,111) Elimination of 50% Transportation Funding 50% is equal to approximately (-$750,000.00) SB81 (-$1,664,759)

8. CHANGES IN REVENUE FOR 12-13 Governors Proposal of Flat Funding Increase in Deficit Factor (2.446 %) $6.3 million Reduction of $370 per ADA $14.3 million Total Reduction in Revenue $20,600,000

9. Changes In Revenue for 13-14 Total Reduction in Revenue $21,400,000 Governors Proposal of Flat Funding Increase in Deficit Factor (2.446%) $7.2 million Reduction of $370 per ADA $14.2 million

10. CHANGES IN EXPENDITURES FOR 2011-2012 Salary Adjustments Decrease Expenses by $1,500,000 Capital Outlay Increase by $200,000 Decrease by $1,300,000

11. CHANGES IN EXPENDITURES FOR 2012-2013 Salary/FTE Adjustments Decrease by -$2,700,000 Employee Benefits Adjustments (7%) Decrease by $1,600,000 Decrease by $4,300,000

12. CHANGES IN EXPENDITURES FOR 2013-2014 Salary/FTE Adjustments Decrease Expenses by $3,300,000 Employee Benefits Adjustments (7%) Decrease by $2,500,000 Decrease by $5,800,000

13. 2011-20122012-20132013-2014 Revenue$213,459,529$198,108,039$202,001,649 Expenditures$217,181,092$219,767,699$222,276,540 Difference($3,721,563)($21,659,660)($20,274,891) Fund Balance$37,462,675$33,741,112$12,081,452 New Difference$33,741,112$12,081,452($8,193,439) Reserve (4%)$13,552,337$11,649,191*($5,863,966)* Remaining Funds$20,188,775$432,261($14,057,405) UNRESTRICTED FUND BALANCE

14. Qualified Budget for 2 nd Interim Report Due to Revenue Uncertainties – Reduction in Revenue Hinging on Potential Tax Increases Need to make $14,500,000 in reduction by 2013-2014 – Increase Revenue – Reduce Expenditures – Union Concessions – Reduce Staff

15. QUESTIONS?