2012-13 Budget Assumptions

Devin Vodicka, EdD

Assistant Superintendent, Business Services

6/13/2012 1

Background • Governor’s May Revision proposal depends largely

on successful passage of November 2012 Tax

Initiative.

• State revenues are lower than projected

6/13/2012 2

What happens if … • If Initiative passes:

o Weighted Student Formula (WSF) could be implemented which would

result in a reduction of categorical funding

• Schools for Sound Finance update on 6/11/12 indicates that “WSF is

off the table” for 2012-13

• If Initiative fails: o Schools can anticipate a revenue reduction of $441 per Average Daily

Attendance (ADA)

• Approximately $4.7 million for CUSD

6/13/2012 3

Current Information • Assumptions impact projected revenues and

expenditures

• Numerous sources utilized: o School Services of California

o San Diego County Office of Education

o San Diego County Tax Assessors

o North Coastal Consortium for Special Education

o Schools for Sound Finance

• As conditions change, assumptions and projected

are adjusted to reflect most recent updates

6/13/2012 4

Revenue Assumptions

6/13/2012 5

2012-13 2013-14 2014-15

Revenue Limit COLA 0% 2.50% 2.70%

K-12 Enrollment Growth 0 0 0

Average Daily Attendance (ADA) 10,616 10,616 10,616

Local Property Taxes -0.24% 1% 2%

Redevelopment Agency Funds (RDA) 0 0 0

Revenue Limit Deficit -22.272% -22.272% -22.272%

Basic Aid “Fair Share” Cut 9.57% 8.92% 8.92%

Governor’s Tax Initiative “Trigger” Reduction

0 $441/ADA $441/ADA

Mandated Costs 0 0 0

Additional Revenue Assumptions • NCCSE Equalization: $651,000 additional revenue in

2012-13 with annual increase of equal amount until

2014-15.

• Special Ed Transportation State Funding Restored.

6/13/2012 6

Expenditure Assumptions • At time of agenda publication, 0% salary schedule

increase was budgeted for certificated. Based on

Tentative Agreement with CUTA signed on 6/11/12,

a reduction of 2.71% will be implemented in 2012-

13.

• Projected increase in Health and Welfare of 10%

effective December. CUSD covers 75% of the

increase.

• PERS rate increases from 10.923% to 11.417%.

• STRS rate remains unchanged.

6/13/2012 7

Additional Expenditure Assumptions • Worker’s Comp rate reduced from 1.74% to 1.62%

• Unemployment Insurance reduced from 1.61% to

1.10%

• Retiree benefit costs projected to increase by

$300,000 in 2012-13

6/13/2012 8

Class Sizes

6/13/2012 9

Kindergarten (Half-Day CSR)

1st-3rd Grade

4th-5th Grade

6th-8th Grade

9th-12th Grade

2009-10 32 20 32 33 34

2010-11 32 22 32 33 34

2011-12 32 32 32 33 34

2012-13 (projected)

33 32 32 33 38.5

2013-14 (projected)

33 32 36 36 38.5

2014-15 (projected)

33 32 36 36 38.5

Expenditure Reductions • $2.3 million in cuts on November 9, 2011

• $1.4 million in cuts on February 8, 2012

• Relocate Carlsbad Village Academy o savings of approximately $400,000

• Employee Compensation Reductions: o LIUNA Agreement to restructure benefits and take pay cuts

o CUTA Agreement to take pay cuts

o Management pay cuts

o Total Employee cuts of approximately $2.0 million

• Total Expenditure Reductions of $6.1 million

6/13/2012 10

Outer Year Assumptions • New Staff projected in 2013-14 for opening of Sage

Creek High School o Included in Sage Creek budget of $1.3 million

• Cultural Arts Center (CAC) likely to exhaust reserve

in 2012-13, impacting other areas unless facility

usage increases significantly. o Annual expense of over $200,000

6/13/2012 11

Recommendation • It is respectfully recommended that the Board

accept the Budget Assumptions as presented.

6/13/2012 12