1. Revenues, Reserves, and Strategic Budgeting November 8, 2011 William C. Young Assistant Superintendent – Business Services Posted www.oceanviewsd.orgwww.oceanviewsd.org

2. Revenue/Expenditure Update

3. 11-12 State Revenue Status State Revenue Status Year-to-date = $654 million shortfall October = $ ??? November = $ ??? December – June 2012 = $ ??? State Trigger Status By December 15, 2011 – determination date for triggers Trigger 1 ($1 - $2 billion short): Cuts OVSD Child Development Funding Trigger 2 (more than $2 billion short): OVSD Transportation Funding cut by at least 50%, OVSD State Revenue Limit Funding cut by up to $618,000

4. 11-12 Federal Revenue Status Federal Revenue Status One-time economic crisis funding is gone - $ 2.3 million Title II and Migrant funding cut Anticipate other federal program cuts Federal Super Committee Status Composed of 6 Senate and 6 House Bipartisan Members Cut $1.5 Trillion by November 23, 2011 Automatic cuts – 50% defense budget, 50% domestic program budgets (including education)

5. 11-12 Reserve for Economic Uncertainty Status Reserve Status Minimum State Requirement = 3% Safety Net – covers about 8 days of payroll 1 month payroll costs = $1.63 million most financial problems are multiyear problems and not one time

6. 11-12 Ending Fund Balance ** The gap between the Ending Fund Balance and Cash in County Treasury is caused by delayed state payments

7. 11-12 Cash Flow Concerns

8. District Administration / Governing Board Strategic Budgeting Reduced – Administrative Costs – Classified Costs – Certificated Costs – Benefit Costs – Operational Costs Planned – To mitigate further cuts – To meet monthly cash needs (to pay payroll)

9. – Low K-3 Class Size - 24:1 – Maintained Block Scheduling at OVJH – Avoided Layoffs – Avoided Furlough Days – Maintained Salaries including step & column increases – Avoided temporary cash loans – Use of One-Time Federal Funding – $ 2.3 million – Offer a one-time off schedule payments District Administration / Governing Board Accomplishments through Strategic Budgeting