FONTANA UNIFIED SCHOOL DISTRICT 2011 2012 2 nd

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

MAJOR CHANGES BY GOVERNOR 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

FUNDED ADA VS. P-2 ADA

ADA COMPARISON

REVENUE INCREASE DUE TO INCREASE IN ADA • 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

UNRESTRICTED REVENUE COMPARISON Budgeted 1 st Interim 2 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. 145 pg. 102 pg. 103 Unrestricted Expenditure Comparison Budgeted 1 st Interim 2 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. 145 pg. 102 pg. 103

CHANGES IN REVENUE FOR 1112 • 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) • SB 81 (-$1, 664, 759)

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

CHANGES IN REVENUE FOR 1314 • Governors Proposal of Flat Funding • Increase in Deficit Factor (2. 446%) • $7. 2 million • Reduction of $370 per ADA • $14. 2 million Total Reduction in Revenue $21, 400, 000

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

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

CHANGES IN EXPENDITURES FOR 20132014 • Salary/FTE Adjustments • Decrease Expenses by $3, 300, 000 • Employee Benefits Adjustments (7%) • Decrease by $2, 500, 000 Decrease by $5, 800, 000

UNRESTRICTED FUND BALANCE 2011 -2012 -2013 -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)

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

QUESTIONS?