1. LUCIA MAR UNIFIED SCHOOL DISTRICT December 9, 2014 JAMES HOGEBOOM, Superintendent RAYNEE J. DALEY, Ed.D., Asst. Superintendent, Business/CBO RHONDA SEYBERT, Director of Finance

2. Developing the Snapshot  Revenue LCFF One-time  Expenditures  Encroachments on General Fund  Projected MYP 2

3. 3

4.  Outstanding Mandated Costs back-payments. One time funding. Estimated at $650,000.  CA Budget Development. Current positive economic outlook in California. Estimated $2 Billion additional dollars for schools. 4

5.  Settlement was negotiated that prior year (FYs 2010-11 to 2012-13) Accounts Receivables would be paid at 40% of amount billed.  $717,849 being written off for Lucia Mar  Budget Adjustment – “budget income when received”, resulting in removing $271,071 from FY 2014-15  Total encroachment for FY 2014-15 due to these changes = $988,921  Evaluation of this program needs to be made as part of the “big rocks” process for FY 2015-16 5

6.  Funds driven by students that qualify for supplemental and concentration grant funding  Proportional funds used to increase or improve services to these students  As LCFF Revenue rises, LCAP Mandated Expenditures rise 6

7. 7

8. Both CalSTRS and CalPERS have increased employer contributions each year through FY 2020-21. Based on today’s salaries:  CalSTRS increased cost will be $700,984 for 2015-16 and $1,428,895 for 2016-17  CalPERS increased cost will be $73,876 for FY 2015-16 and $291,804 for FY 2016-17 8

9. 9

10. 10

11.  In FY 2014-15, the District took back 9 classes from the COE  The take-back plan for these classes included hiring LMUSD staff to support & improve the program  In January 2014, the Board was given an estimated cost of $3,469,571 – we are currently within that estimate DRAFT BUDGET FY 2014/1511

12.  Routine Restricted Maintenance returns to a 3% required contribution of all General Fund expenditures. This will increase our budget by $568,283 in FY 2015- 16 and $608,456 in FY 2016-17.  Incremental loss of E-Rate funding for telephonic and data plans starting in FY 2015-16. Loss of Revenue of $205,040 for FY 2015-16 and an additional loss of $131,170 in FY 2016-17.  Mandated sick pay for substitutes starting in FY 2015- 16. 12

13. 13 Note: 0% = less than 1%

14. 14 Note: 0% = less than 1%

15. 15

16. 116

17. 17 Current Budget is $382,483  Included in this is $268,163 for salaries & benefits for five Custodians  Balance of budget, $114,320, used for various high priority projects across the District  Approximately $26,495 is remaining for projects this year

18. *This was the Budget as of 10/31/14 – CCNTHS Phase III for $2.5 million was not yet budgeted.

19.  POSITIVE – LMUSD will meet its financial obligations for FYs 2014-15, 2015-16, and 2016-17  District will meet its required 3% reserve in FYs 2014-15, 2015-16, and 2016-17 19

20. January 9, 2015 - Governor’s Budget to be Released January 27, 2015 - Provide update to the Board at regular meeting January 2015 Begin work on Second Interim January/February 2015 – Begin Identifying “Big Rocks for Budget Development” 20