Budget Update

Santa Paula Elementary School DistrictMarch 13, 2012

Economic and Revenue Update

Job growth risingUnemployment still high

◦11.1% for December 2011Housing market remains troubledCorporate profits/Technology

companies boomingFederal policy uncertainty

Economic and Revenue Update

LAO forecast for tax revenues for the 2011-12 & 2012-13 fiscal years down ◦$6.5 billion compared to Governor’s

January proposal◦$8.5 billion if Facebook-related

revenues are omitted

Tax InitiativesOur Children,

Our FutureMillionaire’s

Tax

Schools & Local Public Safety

Protection Act of 2012

Supporters Molly Munger, PTA

Calif. Federation of

Teachers

Governor Brown

Type of revenue raised

Personal income tax

Personal income tax

Personal income tax,

sales & use tax

Revenues 2012-13 $5-$5.5 billion $6-$9.5 billion $4.8-$6.9 billion

Revenues 2013-14 $10-$11 billion $4-$6 billion $5.5-$6.3 billion

Revenues used for Schools, early childhood

education & debt service on

bonds

Public education & other local

public services

All state-funded services

Excluded from Prop 98

Yes Yes No

K-12 share of revenue

60% first few yrs, 85% thereafter

36% Largely determined by

Prop 98 formulas

Operative time period

12 yrs (2013-2024)

Ongoing, starting 2012

5 yrs (2012-2016)

Budget Update – No Mid-year cuts

2012-13 2013-14 2014-15

Beg Balance 3,552,678 2,243,499 780,183

Revenue 29,711,273 29,763,583 29,594,559

Expenditures 31,020,452 31,226,899 31,364,713

Net Change (1,309,179)

(1,463,316) (1,770,154)

Ending Balance 2,243,499 780,183 (989,971)

Cash (5,000) (5,000) (5,000)

Economic Uncertainties (930,614) (936,807) (940,942)

Budget Stabilization

1,307,855 (161,624) ( 1,935,913)

Budget Update – Mid-year cuts

2012-13 2013-14 2014-15

Beg Balance 3,552,678 990,380 (1,699,563)

Revenue 28,394,961 28,473,763 28,309,179

Expenditures 30,957,259 31,163,706 31,364,713

Net Change (2,562,298)

(2,689,943) (3,055,534)

Ending Balance 990,380 (1,699,563) (4,755,097)

Cash (5,000) (5,000) (5,000)

Economic Uncertainties (930,614) (936,807) (940,942)

Budget Stabilization

54,766 (2,641,370) (5,701,039)