San Marino Unified School
District
Second Interim Financial Report and
Long Range Financial Projections
March 11, 2008
Proposition 98

The Governor’s position has not changed – he continues to
propose suspension of Proposition 98

The proposed suspension reduces the minimum guarantee by
$4 billion from what it should be

Proposition 98 provides a guarantee of funding for Education
equal to approximately 40% of State revenues with adjustments
for inflation

This is not what voters expected when they
passed Proposition 98
Governor’s Proposed Cuts K-12
Education Funding in 2008-09
Suspend Proposition 98 Guarantee
Revenue Limit Deficit 6.99%
Special Education Deficit 6.5%
State Categorical Programs Deficit 6.5%
Outcome of Special Emergency
Legislative Session 2008

ABX3 4 and ABX 3 7
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Deferral of $1.1 billion in advance apportionments from July to
September

Reduction of Proposition 98 by $507 million for 2008-09 (more to come)

Recapture unallocated categorical funds (i.e. QEIA, After School
Education and Safety Program)

Appropriates $409 million from Public Transportation Account to Home
to School Transportation

No current year cuts to Revenue Limit Funding (however LACOE and
SSC have expressed caution to reserve funds for other mid-year cuts
that may come about.
Reductions to Current
Year Spending
Reduced
funding for Targeted Instructional
Improvement Grant
Unallocated

savings in Economic Impact Aid funds
Recapture Home-to-school transportation funds
Possible
deficit factor for K-3 and Grade 9 Class
Size Reduction programs
Legislative Analyst’s Alternative
Budget Plan

Projected State Budget Deficit $16 billion

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Lower than projected State tax revenues and lower revenues from tribal gaming compacts
Targeted Approach to Spending


Maintain core services at their current spending level (reduce K-12 Education funding to current
minimum guarantee level $800 million loss vs. $4 billion),
Identify reductions in each area of government (health, education, higher ed., social services, criminal
justice, etc.)


Balanced Approach to Budgeting





Establish priorities – essential and most critical services.
Analyze the revenue side of the equation for addt’l budget options
Shift programs to local levels
Reduction and Consolidation of K-12 Revenue Limits and State Categorical Programs
Long Term Balanced Budget Plan


Restructure existing debt
Rather than broad based tax increases, eliminate tax credits/exemptions
Community Budget
Summit
What is most important and
critical in providing schooling for
our students?
2008-09 Budget - Next Steps . .
.
Ongoing communication with parents, teachers, bargaining units, and the
community
Closely monitor development of the 2008-09 State Budget including the “May
Revise” Report. Meet with key State and Education leaders.
Continue to monitor Student Enrollment & Attendance
Develop staffing plans based on P1 (5th month) student enrollment
Meet and confer with the Budget Committee, Site Principals, Leadership, and
Cabinet to review the District Budget.
Develop ideas for areas of cost savings, potential additional resources, and
budget reductions.
Communicate, confer, and provide recommendations to the Board of Education
Tentative Timeline
March – June – Meet and confer with the Principals, Department Managers,
Budget Committee, Leadership, Cabinet and the Board of Education to assess
the impact of the proposed State budget cuts in K-12 Education, identify areas
of cost savings and potential budget reductions, communicate with staff,
parents and the community on possible areas of reduction.
April – Recommended areas of reduction and savings submitted to the Board of
Education for consideration and approval.
May - Incorporate adjustments to the budget based on retirements and attrition.
Provide an update based on the State’s “May Revise” Report.
June – Submit a Proposed Budget to the Board of Education
July 1- Submit the 2008-09 Budget to Los Angeles County
Short and Long Term Planning

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The current fiscal crisis in California is a multi-year
problem.
The State Budget includes structural fiscal problems (i.e.
funding the ongoing cost of COLA with one-time
resources and borrowing)
The District is developing a plan to address both the shortterm (2008-09) the long-term effects of State budget
reductions.
We will conquer these fiscally challenging times - together!
Questions