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SANTA CRUZ COUNTY OFFICE OF EDUCATION

2012/13 PROPOSED BUDGET

OVERVIEW

PRESENTED BY:PRESENTED BY:

MARY HART, ASSOCIATE MARY HART, ASSOCIATE SUPERINTENDENT/BUSINESS SVCS.SUPERINTENDENT/BUSINESS SVCS.

JUNE 21, 2012JUNE 21, 2012

Santa Cruz CountySanta Cruz County Office of EducationOffice of EducationMICHAEL C. WATKINS, SUPERINTENDENTMICHAEL C. WATKINS, SUPERINTENDENT

PROPOSED BUDGET FOR 2012/13

Year-end expenditures have been estimated based on current knowledge.

The proposed 2012/13 Budget includes changes reflected in the May Revise.

Adjustments will be made after the State Budget is adopted.

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GENERAL ASSUMPTIONSUSED IN THIS BUDGET

• Based on the 2012/13 May Revise State Based on the 2012/13 May Revise State Budget. Budget.

• School Services of California has advised School Services of California has advised budgeting a COLA of 3.24% for revenue limit budgeting a COLA of 3.24% for revenue limit funding. The projected deficit increases to funding. The projected deficit increases to 22.549%. The net effect of these two changes 22.549%. The net effect of these two changes will result in flat funding.will result in flat funding.

• All state categorical funding has been projected All state categorical funding has been projected at 2011-12 levels. This includes all Tier III at 2011-12 levels. This includes all Tier III Categorical programs.Categorical programs.

• 2013-14 and 2014-15 projections are based on 2013-14 and 2014-15 projections are based on the latest School Services of California the latest School Services of California Dartboard.Dartboard.

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Craft Budget Plans that do not rely on carryover funds.

Budget for no salary increases (other than Step and Column).

Budget for a 10% increase in Health and Welfare Costs.

For areas affected by State Budget reductions, reduce expenditures to conform to new lowered revenues.

DIRECTION PROVIDED TO DEPARTMENTS:

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- General Fund Revenues remain relatively flat, decreasing from $43.1 million to $42.5 million.

- General Fund Expenditures follow a similar trend, decreasing from $48.0 million to $46.6 million.

RESULT:

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ADA IMPACTS

- Court/Community Schools- Court/Community SchoolsADA is projected at 2011/12 levels through ADA is projected at 2011/12 levels through

the 2014/15 fiscal year.the 2014/15 fiscal year.

- Special Education- Special EducationADA is projected at 2011/12 levels through ADA is projected at 2011/12 levels through

the 2014/15 fiscal year.the 2014/15 fiscal year.

- County-Wide ADA is projected at 2011/12 levels - County-Wide ADA is projected at 2011/12 levels through the 2014/15 fiscal year.through the 2014/15 fiscal year.

- ROP- ROPROP ADA is no longer collected by the state ROP ADA is no longer collected by the state

for funding purposes.for funding purposes.

2011/12 ESTIMATED ACTUALS

Unrestricted Restricted Total

Beginning Balance

$16,261,905 $5,304,486 $21,566,390

Revenues & Transfers In

$18,986,233 $25,104,230 $44,090,463

Expenditures & Transfers Out

$21,870,393 $26,221,521 $48,091,914

Increase (Decrease)

($2,884,160) ($1,117,291) ($4,001,451)

Designated Ending Balance

$13,377,745 $4,187,194 $17,564,939

UndesignatedEnding Balance

$0 $0 $0

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MYP ASSUMPTIONS - REVENUES

Budgeted COLA on state revenues at 2.4% for Budgeted COLA on state revenues at 2.4% for 2013/14 and 2.7% for 2014/15. Deficit remains 2013/14 and 2.7% for 2014/15. Deficit remains at 22.549%. The ADA Revenue Limit is at 22.549%. The ADA Revenue Limit is projected to remain flat through 2014/15.projected to remain flat through 2014/15.

Federal funding is projected at 2012/13 levels Federal funding is projected at 2012/13 levels through 2014/15.through 2014/15.

Local revenues are projected at 2012/13 levels Local revenues are projected at 2012/13 levels through 2014/15. through 2014/15.

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MYP ASSUMPTIONS - EXPENDITURES

Salary and benefit costs are expected to Salary and benefit costs are expected to increase each year due to step and column.increase each year due to step and column.

Health & welfare costs are projected to Health & welfare costs are projected to increase 10% in both 2013/14 and 2014/15.increase 10% in both 2013/14 and 2014/15.

The majority of one-time expenses funded out The majority of one-time expenses funded out of one-time federal job funding have been of one-time federal job funding have been moved to Tier III funding sources.moved to Tier III funding sources.

Supply, material, and equipment budgets have Supply, material, and equipment budgets have been adjusted to reflect increases in state been adjusted to reflect increases in state revenues.revenues.

GENERAL FUND THREE YEAR SUMMARY

2012/132012/13 2013/142013/14 2014/152014/15

Beginning BalanceBeginning Balance $17,564,939$17,564,939 $13,336,979$13,336,979 $12,163,745$12,163,745

Revenues & Revenues & Transfers InTransfers In $42,459,503$42,459,503 $43,129,915$43,129,915 $43,916,141$43,916,141

Expenditures & Expenditures & Transfers OutTransfers Out $46,687,463$46,687,463 $44,303,150$44,303,150 $45,064,318$45,064,318

Increase (Decrease)Increase (Decrease) ($4,227,960)($4,227,960) ($1,173,234)($1,173,234) ($1,148,179)($1,148,179)

Nonspendable Fund Nonspendable Fund BalanceBalance $719,481$719,481 $719,481$719,481 $719,481$719,481

Restricted Fund Restricted Fund BalanceBalance $2,314,793$2,314,793 $1,481,719$1,481,719 $626,550$626,550

Assigned Fund Assigned Fund BalanceBalance $10,302,705$10,302,705 $9,962,545$9,962,545 $9,669,535$9,669,535

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Support for Districts & Students:

The Santa Cruz County Office has utilized a The Santa Cruz County Office has utilized a combination of on-going and one-time resources combination of on-going and one-time resources to fund a number of activities aimed at to fund a number of activities aimed at supporting both districts and students. These supporting both districts and students. These include:include:

Technology Technology

District Site ImprovementsDistrict Site Improvements

Adult Education (GED & Preschool) Adult Education (GED & Preschool)

Digital Connections Project (21Digital Connections Project (21stst Century Century Learning)Learning)

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Support for Districts & Students - continued

Arts, Arts Coordinator and a Summer Arts Arts, Arts Coordinator and a Summer Arts Institute and Student Art ShowsInstitute and Student Art Shows

SELPA administration and staffSELPA administration and staff

Professional Development in mathematics Professional Development in mathematics

College feasibility study for S4C and a PT College feasibility study for S4C and a PT Coordinator for two years to oversee the Coordinator for two years to oversee the projectproject

Tutorial and homework support in librariesTutorial and homework support in libraries

Gang suppression and prevention through Gang suppression and prevention through BASTABASTA

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Support for Districts & Students - continued

Professional Development for District Business Professional Development for District Business PersonnelPersonnel

Outdoor Education ProgramOutdoor Education Program

AB430 Principal TrainingAB430 Principal Training

Expanded career opportunities in local high Expanded career opportunities in local high school’s (ROP) school’s (ROP)

Increased support to districts participating in Increased support to districts participating in the New Teacher Projectthe New Teacher Project

Teacher professional development pertaining Teacher professional development pertaining to Common Coreto Common Core

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Support for Districts & Students - continued

Educational leaders from across the country Educational leaders from across the country

Online Learning SymposiumOnline Learning Symposium

Collaborated with Santa Cruz County Collaborated with Santa Cruz County Symphony to provide musical opportunitiesSymphony to provide musical opportunities

Mentorship and career panels for all Mentorship and career panels for all secondary schools through Your Future is secondary schools through Your Future is Our Business Our Business

Summer School Credit Recovery for nearly Summer School Credit Recovery for nearly 1000 students1000 students

Address attendance and truancy (SARB)Address attendance and truancy (SARB)

Increase science participation for under Increase science participation for under represented youthrepresented youth

Addressing the achievement gap through Addressing the achievement gap through unique ELL strategies and supportunique ELL strategies and support

Tutorial and homework support in the homelessTutorial and homework support in the homeless

sheltersshelters

Support for Districts & Students - continued

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RECOMMENDATION

Our recommendation to the Board is to Our recommendation to the Board is to adopt the 2012/13 proposed Budget. adopt the 2012/13 proposed Budget.