2012-13 Budget Assumptions Devin Vodicka, EdD Assistant Superintendent, Business Services 6/13/2012 1
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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
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