March 26, 2013

1. Three-Year Plan to Eliminate Budget Deficit and Rebuild the Reserves Inclusive of Property Sales as Bridging Mechanism March 26, 2013

2. Three-Year Plan to Eliminate Budget Deficit and Rebuild the Reserves Inclusive of Property Sales as Bridging Mechanism • District has Balanced Budget One Year at a Time over Last Six Years • Prop 30 Allows for Additional Revenue to Solve Structural Budget Deficit Over Time • The District is Including Sale of Real Estate as a Strategy to Bridge the Budget Deficit Until Prop 30 Revenue becomes a Consistent Reality • A Multi-Year Strategy enables the District to Solve the Structural Deficit and Build Reserves

3. Three-Year Plan to Eliminate Budget Deficit and Rebuild the Reserves Inclusive of Property Sales as Bridging Mechanism • The Board has already Passed a Resolution to Build Up Reserves to Protect the Student’s Education in the Future • The Attrition Model Currently Approved by the Board and being Implemented by Staff Fixes $30M of the Challenge • Revenues will Increase over the Coming Years and if We hold Expenses Down they will Intersect at the End of 2015-16

4. Three-Year Plan to Eliminate Budget Deficit and Rebuild the Reserves Inclusive of Property Sales as Bridging Mechanism • Because Prop 30 Revenue does not Materialize Quickly Enough the District has to Build a Bridge to a Balanced Budget with the Sale of Real Estate • The Board and Staff are Looking for Long Term Solutions to Provide Stability to the District • This Plan will Require Resolve and Will on the Part of the Board, Staff and Stakeholders to become a Reality • With this Resolve and Commitment the District will Solve its Structural Deficit by the End of 2015-16

5. Three-Year Plan to Eliminate Budget Deficit and Rebuild the Reserves Inclusive of Property Sales as Bridging Mechanism • What the District will have to do to Eliminate the Structural Deficit and Begin Building Reserves by the end of 2015-16: • Commit to a Staffing Plan Consistent with Enrollment • Control Healthcare Costs • Realign the Instructional Program where Necessary while Maintaining the Academic Well-being of the Students • Apply the Attrition Model in a Consistent Manner • Sell Enough Property to be a Bridge to the Future • If the District Sets and Stays the Course with Discipline and Resolve, We can Make it Happen!

6. Three-Year Budget Plan to Eliminate Structural Deficit Real Estate Revenues/Costs Estimates Rough Order of Magnitude (above does not include appraisals/advertising/etc.) *2013-14 lease revenue loss only. Future revenue loss to be evaluated by Finance. 6

7. Three-Year Budget Plan to Eliminate Structural Deficit Real Estate Timelines 7 At risk *Holiday Week Nov. 25-29 interferes Completed dates

8. Three-Year Plan to Eliminate Budget Deficit and Rebuild the Reserves Inclusive of Property Sales as Bridging Mechanism • Discipline, Will and Commitment to Re-Balancing the Budget will: • Safeguard and Sustain Academic Programs • Allow a Clear and Unimpeded Focus on the Core Mission of Educating Students in Quality Schools all Across the District • Mitigate Future Declining Budget Cycles • Stabilize Resources and Budget Allocations • Enable the Use of Assets for Additional Income Generation