The document provides fiscal assumptions and projections for a school district's budget from 2011-12 through 2013-14. It includes assumptions about revenues, expenditures, staffing levels, and other factors. Charts show historical and projected revenues and expenditures. The district is facing reductions in state funding and increasing costs, and has made staffing and program reductions in response. Approval of the assumptions would allow completing multi-year budget projections.

1. June 8, 2011

2.  Frank disclosure of fiscal conditions and
assumptions.
 Approval of these assumptions will expedite
completion of budget for 2011-12 and multi-
year projections for 2012-13 and 2013-14.

6. $90,000,000
$82,471,812
$80,162,428
$80,000,000
$70,000,000 $66,905,516 $68,265,483
$65,865,990 $66,269,436
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
0910 1011 1112 1213 1314 1415

7.  Revenue Limit COLA: State statutory COLA of 2.24% was used
for 2011-12; School Services of California’s (SSC) Dartboard (May
2011) projects COLA of 3.20% for 2012-13 and 2.70% for 2013-14;
 Revenue Limit Deficit: Though higher COLA, it remained
unfunded and deficit increased from 17.963% to 19.754%; per SSC,
project higher deficit of 19.754% until further notice.
 K–12 Enrollment Growth: Latest enrollment count reflects zero
growth in current year; assumed flat growth for two subsequent
years.
 Average Daily Attendance (ADA): Projecting 10,611.49 per year
(includes 3.05 County Pass-through ADA).
 Local Property Taxes: $60,714,100 based on latest SDCOE
figures, a reduction of $409,000 (or -0.65%) over current year tax
projection. A 1% growth is estimated for fiscal year 2012-13 and
2013-14. Taxes will be closely monitored due to impact of refunds
for lower assessed valuations countywide.

8.  8.92% On-going reduction to Basic Aid
Districts: As signed by Governor Brown on
March 24, 2011, effective FY 2011-12, an
8.92% reduction to State categorical funding
will be recognized by District on an on-going
basis.
 $330/ADA Funding Cut: SDCOE and SSC has
recommended additional cuts of $330/ADA
be made because State Budget and final
funding impact is unknown.

9.  Mandated Costs Revenues: Revenues will be recognized upon receipt;
project $0 for subsequent years.
 Lottery excluding Prop 20: Project $111/ADA for fiscal year 2011-12;
$110 and $108.75 for subsequent years.
 Class Size Reduction, Grades K-3: Due to relaxed penalties through
2013-14, funding to be reduced rather than eliminated when District
staffs at higher than 20:1 in grades 1-3. Projected COLA increases to
funding beginning FY 2012-13 and thereafter.
 State Categoricals: Per SBX3 4, revenues now recognized as
Unrestricted rather than Restricted funds and adjusted by projected
COLA beginning FY 2012-13 (if funded). SB 70 extends all existing
flexibility options by two additional years.
 Lottery: Prop 20 Instructional Materials: Project $17.50/ADA for 2011-
12; $17.20 for 2012-13 and 2013-14.
 Instructional Materials Funding Realignment Program (IMFRP): Per
SBX3 4, revenues now recognized as Unrestricted rather than Restricted
funds and adjusted by projected COLA beginning FY 2012-13 (if funded).

10.  Deferred Maintenance & Major Maintenance & Repair Contributions:
Annual deferred maintenance match and 3% contribution to restricted
maintenance program are no longer required through June 30, 2015
though District will continue to spend over $2M on these programs.
 Special Education – State Funding: Projection assumes zero growth in
K-12 ADA and funding for special education adjusted by projected COLA
beginning FY 2012-13. Effective FY 2011-12, over $600,000 in DHH staff
costs and offsetting revenue will have been transferred to NCCSE.
 Special Education Transportation – State Funding: Revenue adjusted
by projected COLA beginning FY 2012-13.
 Mental Health Services: With passage of AB 3632, Districts are
responsible for paying for services as well as room and board costs for
students at year-round Residential Treatment Centers. Though funding is
anticipated, none is recognized at this time.
 Federal Revenues: Few Federal categorical budgets were projected with
COLA funding and no “carryover” amounts are included.
 Federal ARRA and Education Jobs Revenues: One-time funds received
in current year are not included in subsequent years.

11.  Local Income (Interest, facility use fees, District rentals,
miscellaneous income, etc.): Projected interest earnings at less
than 1% for each year and assumes participation in TRANs.
 Local Income – NCCSE: Effective 2011-12, two Deaf and Hard of
Hearing regional program unit costs will be transferred to NCCSE
with offsetting revenue reduction of $330,000 in Special Education
funds. With DHH program now being administered by NCCSE, the
District will no longer receive $64,000 in maximization dollars to
support coordination of program.
 Other Local Income (donations, grade camp funds, etc.):
$80,000 projected donations is included for each year from
Educational Foundation; all other donations are recognized upon
receipt.

12. 1% 0%
11%
3%
Certificated Salaries
Classified Salaries
Fringe Benefits
Books & Supplies
21% 51%
Contract, Other Services
Capital Outlay
Other Outgo
13%
Note: Data reflects expenses through May 2011

13.  Salary Schedule Increase: 0% salary schedule
increase is budgeted.
 Step and Column Increase: Projected net cost
increase of step and column per year of 1.00%
for certificated employees and 0.50% for
classified and management employees.
 Health & Welfare Increase with no reduction in
benefit levels: Health and Welfare benefit costs
continue to increase. Budget provides for
overall premium increases of 10% effective
January 1, 2012 and for each subsequent years;
District covers 75% of that increased cost.

14.  Staff Reductions: Continuous review of vacant
positions has resulted in elimination of 1.10 FTEs
Music, .60 FTE Literacy Specialist, 1.20 FTEs net
reduction of librarians, reduction of BTSA
support, 1.00 FTE Director of Curriculum and
Instruction, two computer lab assistants, 1.00
FTE payroll technician, .50 FTE custodian.
District has also eliminated 1.00 FTE from
Carlsbad Seaside Academy, 1.00 Administrative
Assistant (Language Assessment Center) still
pending Board approval. District will continue to
recognize savings from attrition.

15.  $330/ADA Cut: Under “Other Adjustments”
in Expenditure Section of the multi-year
report, we have included the figure of -
$3,501,792 to account for needed employee
salary and benefit concessions IF potential
$330/ADA cut materializes in FY 2011-12.

16.  PERS Increase: Fiscal year 2011-12 increased rate is
10.923% (was 10.707% in 2010-11). Further rate
increases are projected for subsequent years.
 Unemployment Increase: Rate will more than
double to 1.61% from current rate of 0.72% effective
FY 2011-12. In addition, some employers will see an
increase in their local experience charge due to layoffs
over the last several years.
 Retiree Benefits: Projected premium increases
effective January 1, 2012 based on current number of
retirees. OPEB liability is “pay-as-you-go”.

17.  Teacher to Student Ratios (Regular
Education): Grades 1-3 will be staffed at 32:1
effective FY 2011-12.

18.  School Site allocations: Reduction of 5% to per-student allocations for unrestricted instructional
supplies and custodial supplies and reduction of 20% for site flex budgets effective FY 2011-12.
 Utility Costs including Telephone Service: Projected increases to service accounts for 2011-12
and 5% for subsequent years, except for gas and electric costs, which could be flat due to District
energy conservation program.
 Contribution to Restricted Programs: Special Education and Special Education
Transportation: Increased contribution to both programs due to flat or declining funding and
other unavoidable cost increases. For 2011-12, increased contribution to special education
transportation by 7% over prior year; 5% increase thereafter.
 Contribution to Food Services Operations: $0 contribution is projected.
 Deferred Maintenance: Under SB 70, District match not required until after June 30, 2015.
 Routine Restricted Maintenance Account: Funded at level needed to cover personnel and on-
going operational costs.
 Other: Except as noted above, all items are “rolled forward” at the level in prior year.
 Cultural Arts Center (CAC) Operational Costs: CAC operational budget totals over $242,000 for
staff and utility increased costs; in 2012-13 reserve will be exhausted unless outside facility usage
increases greatly.
 Summer School: Per SBX3 4 flexibility, summer school is eliminated effective 2011-12 with
exceptions of Special Education Extended School Year (ESY) and Language Academy for English
Learners.

19.  Insert admin visuals

21. $18,000,000
$16,266,401
$16,000,000
$14,000,000 $13,215,702
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,842,452 $2,595,253 $2,587,671
$2,560,051
$2,000,000
$0
0910 1011 1112 1213 1314 1415

22.  All fund balance components/reserves are one-
time resources and are best not used to fund
recurring costs. Unfortunately, due to recent
State action eliminating close to $6M from Basic
Aid Districts effective FY 2011-12, many one-
time resources will be used to support on-going
costs. Thereafter, significant employee salary
and benefit concessions and many other budget
reductions will be needed if State fiscal
condition does not improve by FY 2012-13.

23.  State required 3% reserve for economic uncertainties
is currently met and must be restored if used.
 Required reserves for Stores (non-cash inventory),
Revolving Cash fund, and Prepaid Expenditures
cannot be used for other purposes and thus, are
considered non-spendable by State.
 Categorical (or Special Project) funds are considered
restricted by the State and thus, are held in a Legally
Restricted Balance account.
 Undesignated/Unappropriated amounts are available
for future use and may include donor/grantor
specified designations (e.g. Donations, Cultural Arts
Center, Filming of Board meetings).

24.  It is respectfully recommended that the
Board of Trustees accept the Budget
Assumptions as presented.
 For more information on District budget process:
 http://www.edsource.org/pub_budgetguide1-04.html
 http://www.edsource.org/iss_fin_districtbud.html