CALIFORNIA CHARTER SCHOOLS ASSOCIATION v. LOS ANGELES UNIFIED SCHOOL DISTRICTRespondent’s Request for Judicial NoticeCal.October 10, 2013 Cstey Case No. S208611 OCT 10 2013 IN THE SUPREME COURT oo Frank A. McGuire Cark OF THE STATE OF CALIFORNIA Deputy CALIFORNIA CHARTER SCHOOLSASSOCIATION, Plaintiffand Respondent, v. LOS ANGELES UNIFIED SCHOOLDISTRICT,et al. Defendants and Appellants. After a Decision by the Court ofAppeal Second Appellate District, Division Five Case No. B242601 Los Angeles Superior Court Case No. BC438336 Honorable Terry A. Green, Presiding Judge, Dept. 14 MOTION CONDITIONALLY REQUESTING JUDICIAL NOTICE IN SUPPORT OF REPLY BRIEF ON THE MERITS; DECLARATION OF WINSTONP. STROMBERG AND EXHIBITS ATTACHED THERETO LATHAM & WATKINS LLP CALIFORNIA CHARTER SCHOOLS James L. Arnone (Bar No. 150606) ASSOCIATION Winston P. Stromberg (Bar No. 258252) Ricardo J. Soto (Bar No. 167588) Vanessa C. Wu (Bar No. 274336) Julie Ashby Umansky (Bar No. 183342) Michele L. Leonelli (Bar No. 280867) Phillipa L. Altmann (Bar No. 186527) 355 South Grand Avenue 250 East 1* Street, Suite 1000 Los Angeles, California 90071-1560 Los Angeles, California 90012 Telephone: (213) 485-1234 Telephone: (213) 244-1446 Facsimile: (213) 891-8763 Facsimile: (213) 244-1448 Email: james.arnone@lw.com Email: paltmann@calcharters.org Attorneys for Plaintiff and Respondent California Charter Schools Association Case No. S208611 IN THE SUPREME COURT OF THE STATE OF CALIFORNIA CALIFORNIA CHARTER SCHOOLS ASSOCIATION, Plaintiffand Respondent, v. LOS ANGELES UNIFIED SCHOOL DISTRICT,et al. Defendants and Appellants. After a Decision by the Court ofAppeal Second Appellate District, Division Five Case No. B242601 Los Angeles Superior Court Case No. BC438336 Honorable Terry A. Green, Presiding Judge, Dept. 14 MOTION CONDITIONALLY REQUESTING JUDICIAL NOTICE IN SUPPORT OF REPLY BRIEF ON THE MERITS; DECLARATION OF WINSTONP. STROMBERG AND EXHIBITS ATTACHED THERETO LATHAM & WATKINS LLP CALIFORNIA CHARTER SCHOOLS James L. Arnone (Bar No. 150606) ASSOCIATION Winston P. Stromberg (Bar No. 258252) Ricardo J. Soto (Bar No. 167588) Vanessa C. Wu (Bar No. 274336) Julie Ashby Umansky (Bar No. 183342) Michele L. Leonelli (Bar No. 280867) Phillipa L. Altmann (Bar No. 186527) 355 South Grand Avenue 250 East 1° Street, Suite 1000 Los Angeles, California 90071-1560 Los Angeles, California 90012 Telephone: (213) 485-1234 Telephone: (213) 244-1446 Facsimile: (213) 891-8763 Facsimile: (213) 244-1448 Email: james.arnone@lw.com Email: paltmann@calcharters.org Attorneys for Plaintiff and Respondent California Charter Schools Association CONDITIONAL MOTION Pursuant to Evidence Code sections 452, subdivisions(b), (c), and (h), and 459,as well as California Rules of Court 8.520, subdivision(g), and 8.252, subdivision (a), Plaintiff and Respondent California Charter Schools Association (“CCSA”) hereby movesthis Court to take judicial notice of the three documentslisted below, which respondto issues raised in Defendants’ and Appellants’ (collectively, “LAUSD”) AnswerBriefand motion requesting judicial notice (“RJN”) in support ofAnswerBrief. This request is conditional. If the Court denies LAUSD’s RJN and, in doing so, sustains CCSA’s objections to that RJN, then CCSA’s RJN is moot. If, however, this Court is willing to consider the newly submitted evidence in LAUSD’s RJN, CCSArequests that the Court also consider the documents subject to judicial notice contained herein. The three documents CCSAconditionally requests judicial notice of are: Exhibit A: Los Angeles Unified School District, Board of Education, Regular Meeting Stamped Orderof Business, September 10, 2013. Exhibit B: President Barack Obama’s National Charter Schools Week Proclamation, May 07, 2012. Exhibit C: Los Angeles Unified School District, Budget Services & Financial Planning Division, Superintendent’s 2013-2014 Final Budget, June 18, 2013. This Conditional Motion is based on this Notice of Conditional Motion and Conditional Motion, the attached Memorandum ofPoints and Authorities, the Declaration of Winston P. Stromberg, and Exhibits A through C attached thereto. Respectfully submitted, Dated: October9, 2013 LATHAM & WATKINSLLP James L. Arnone Winston P. Stromberg Vanessa C. Wu Michele L. Leonelli » Cas §tp> Winston P. StromieryKer Attorneys for Plaintiff and Respondent California Charter Schools Association MEMORANDUM OF POINTS AND AUTHORITIES I. INTRODUCTION Judicial notice may be takenof“[r]egulations andlegislative enactments issued by . . . any public entity in the United States,” “[o]fficial acts of the legislative, executive, and judicial departments of the United States and any state ofthe United States,” and “[fJacts and propositions that are not reasonably subject to dispute and are capable of immediate and accurate determination by resort to sources of reasonably indisputable accuracy.” (Evid. Code, § 452, subds. (b), (c), (h).) A reviewing court maytake judicial notice of a matter not before the trial court if the matter “is of substantial consequenceto the determinationofthe action.” (People v. Terry (1974) 38 Cal.App.3d 432, 439; Evid. Code, § 459, subds.(a), (c).) CCSA’s request for judicial notice (“RJN”) is conditional. If the Court denies LAUSD’s RJN and,in doing so, sustains CCSA’sobjections to that RJN, then this RJN is moot. If, however, the Court is willing to consider the newly submitted evidence in LAUSD’s RJN, CCSArequests that the Court also consider the documentssubjectto judicial notice contained herein. Ii. THE COURT SHOULD TAKEJUDICIAL NOTICE OF THE LAUSD BOARD OF EDUCATION’S REGULAR MEETING STAMPED ORDER OF BUSINESS, DATED SEPTEMBER10, 2013 Judicial notice of a public body’s meeting minutes, meeting agenda, and specific agenda itemsis proper. (Evid. Code, § 452, subds. (b), (c), (h); Cal. Assn. ofRetail Tobacconists v. State ofCal. (2003) 109 Cal.App.4th 792, 828, fn. 21 [granting judicial notice of state commission’s meeting minutes and specific agenda item]; Souza v. Westlands Water Dist. (2006) 135 Cal.App.4th 879, 886, fn. 1 [granting judicial notice ofwater district’s board meeting agenda].) Attached as Exhibit A to the Declaration of Winston P. Stromberg (“Stromberg Declaration”) is a true and correct copy ofthe LAUSD Board ofEducation’s Regular Meeting Stamped Order of Businessforits September 10, 2013, meeting, at which the Board adopteda resolution regarding the negative impacts it perceives Prop. 39 having at LAUSD campuses. (See Exh.A, pp. 25-26 [Item 23] (“Prop. 39 Resolution”’).) LAUSDclaimsthat it has “embraced”charter schools, but thatits campuses remain overcrowded even despite implementing thelargest school building program in U.S. history, a result of billions of dollars of voter-approved bonds. (See, e.g., Answer Brief (“AB”), pp. 7-8, 40.) Pursuant to California Rules of Court Rule 8.252, subdivision (a)(2)(A),! Exhibit A is relevant because the Prop. 39 Resolution demonstratesthat contrary to LAUSD’sclaim that it supports the charter schools movement, even at the highest bureaucratic levels, LAUSDactually views charter schools as competition, students attending public charter schoolsas the same as students attending private schools, and parents’ and students’ choices to attend charter schools as a problem to berestricted. (Exh. A, pp. 25-26.) It is in this context, and against this kind ofinstitutionalanti- charter bias that CCSA hashadto fight for space on behalf of its members. The Prop. 39 Resolution undermines LAUSD’sclaimsthat it complies with Prop. 39 and thatits interpretation of the Implementing Regulations aims for a fair allocation of school facilities. The Prop. 39 Resolution also indicates that LAUSD hasconstructed 130 new K-12 schools since 1997. (Exh.A, p. 25.) In conjunction with LAUSD’sdecreasing enrollment, this undercuts one of LAUSD’sprincipal arguments: that LAUSDis too crowded to accommodate charter schools. Per Rule 8.252, subdivision (a)(2)(B), Exhibit A was not presented to or noticed bythe trial court. A reviewing court maystill take judicial notice of a matter not before the trial court if the matter is subject to judicial notice under Evidence Codesection 452 and “is of substantial consequence ' Unless otherwise specified, all further references to the “Rule(s)” herein shall be to the California Rules of Court. tothe determination of the action.” (Rule 8.252, subd. (a)(2)(C); Peoplev. Terry (1974) 38 Cal.App.3d 432, 439; Evid. Code, § 459, subds.(c), (h).) The Prop. 39 Resolution is of substantial consequenceto the determination of this action because the Prop. 39 Resolution illustrates LAUSD’sinstitutional resistance to Prop. 39. This providesvital context for the Court’s resolution of this case, especially as LAUSDclaimsto comport with Prop. 39 and faithfully implement the Implementing Regulations. Finally, per Rule 8.252, subdivision (a)(2)(D), the matter to be noticed does relate to proceedings occurring after the trial court order that is the subject of the appeal, as the LAUSD Board adopted the Prop. 39 Resolution on September10, 2013. Ii. THE COURT SHOULD TAKE JUDICIAL NOTICE OF PRESIDENT OBAMA’S PRESIDENTIAL PROCLAMATION REGARDING NATIONAL CHARTER SCHOOLS WEEK, DATED MAY07, 2012 Attached as Exhibit B to the Stromberg Declaration is a true and correct copy of a Presidential Proclamation issued by President Barack Obamaregarding National Charter Schools Week, dated May 7, 2012 | (“Presidential Proclamation”). Judicial notice of the Presidential Proclamation is appropriate becauseit reflects an official act of the executive departmentofthe United States subject to judicial notice under Evidence Code Section 452, subdivision (c). (Evid. Code, § 452, subd. (c).) Further, the Presidential Proclamation is available on the official White House website.” The existence of the Presidential Proclamation is not reasonably subject to dispute. (Evid. Code, § 452, subd.(h).) Pursuant to Rule 8.252, subdivision (a)(2)(A), the Presidential Proclamation is relevant because it shows the importantrole charter schools play in spurring innovationin public school education by providing an alternative to traditional district-run schools. The Presidential Proclamation is also relevant becauseit refutes LAUSD’s implication that President Obamarecognizes preschools but not charter schools as an important componentofthe educational system. (See, e.g., AB, p. 41.) Per Rule 8.252, subdivision (a)(2)(B), the Presidential Proclamation was not presented to or noticed by the trial court. Nevertheless, the Presidential Proclamation is of substantial consequenceto the determination of this action because it demonstrates the importance of complying with Prop. 39 as a voter-selected means of improving public education in California. Finally, per Rule of Court 8.252, subdivision (a)(2)(D), the matters to be noticed do not relate to proceedings occurring after the trial court order that is the subject of the appeal. 2 The Presidential Proclamation is available at: http://www.whitehouse.gov/the-press-office/20 12/05/07/presidential- proclamation-national-charter-schools-week-2012. IV. THE COURT SHOULD TAKE JUDICIAL NOTICE OF LAUSD’S 2013-2014 FINAL BUDGET, DATED JUNE18, 2013 Attached as Exhibit C to the Stromberg Declarationis a true and correct copy of the LAUSD, Budget Services & Financial Planning Division, Superintendent’s 2013-2014 Final Budget, dated June 18, 2013 (“2013-14 Budget”). Though CCSArequests judicial notice of the entire 2013-14 Budget, CCSA seeks the Court’s focus only on Appendix H to the 2013-14 Budget. (See Exh. C, pp. 192-195.) Judicial notice of the 2013-14 Budget is appropriate becauseit reflects a legislative enactment of a public agency pursuant to Evidence Code Section 452, subdivision (b), and is not reasonably subject to dispute. (Evid. Code, § 452, subds.(b), (h).)? Pursuantto Rule 8.252, subdivision (a)(2)(A), the 2013-14 Budget, and more specifically Appendix H to the budget, is relevant because it shows the decrease in LAUSDenrollment over the past ten years, as well as a concurrent increase in charter school enrollment. Appendix H to the 2013-14 Budget also showsthe projected decrease in LAUSD enrollment, and projected increase in charter school enrollment, over the next two school years. That refutes LAUSD’s claim that accommodating charter school students in compliance with CCSA’s interpretation of the Implementing Regulations will “harm” students > The 2013-14 Budgetis availableat: http://notebook.lausd.net/ pls/ptl/docs/PAGE/CA_LAUSD/LAUSDNET/OFFICES/CFO_HOME/ BSFPD_HOME/LAUSD2013-14FINALBUDGET.PDF. attending LAUSD-runschools, as there will be more and more classrooms becomingavailable as LAUSD’s enrollment continues to decline. Per Rule 8.252, subdivisions (a)(2)(B) and (D), the 2013-14 Budget wasnotpresentedto or noticed bythe trial court, as it is dated afterthetrial court order that is the subject of the appeal. However, the 2013-14 Budget is of substantial consequenceto the determination ofthis action becauseit tends to show that with a continuing decrease in LAUSDenrollment projected over the next several years, LAUSD’s campusescontinue to have more and more space, especially ifLAUSD continuestoartificially reduce the numberofclassroomsit uses by applying normingratios. V. CONCLUSION Based on the foregoing, should the Court decide in its discretion to consider the evidence submitted by LAUSD in LAUSD’s RIN, CCSAalso requests that this Court grant CCSA’s Conditional Motion requesting judicial notice of the documents described herein and attached hereto. Respectfully submitted, Dated: October 9, 2013 LATHAM & WATKINSLLP James L. Arnone Winston P. Stromberg Vanessa C. Wu Oo L. Leonelli By: Cor _ Winston P. Stromberg= Attormeysfor Plaintiff and Respondent California Charter Schools Association 10 DECLARATION OF WINSTON P. STROMBERG I, Winston P. Stromberg, declare as follows: 1. I am an associate with the law firm ofLatham & Watkins LLP, counsel of record for Plaintiff and Respondent California Charter Schools Association, and am a memberin goodstandingofthe State Bar of California. I have personal knowledge ofthe matters stated herein, and if called to testify could and would testify competently to them. 2. Attached hereto as Exhibit A is a true and correct copy of the Los Angeles Unified School District Board ofEducation’s Regular Meeting Stamped Order ofBusiness, dated September 10, 2013. 3. Attached hereto as Exhibit B is a true and correct copy of President Barack Obama’sPresidential Proclamation regarding National Charter Schools Week Proclamation, 2012, dated May 7, 2012. 4. Attached hereto as Exhibit C is a true and correct copy ofthe Los Angeles Unified School District, Budget Services & Financial Planning Division, Superintendent’s 2013-2014 Final Budget, dated June 18, 2013. I declare under penalty ofperjury of the laws ofthe State of California that the foregoingis true and correct and that this declaration was executed on October 9, 2013, in Los Angeles, California. On SAS Winston P, Strombérg) LA\3342011.3 1] BOARD OF EDUCATIONOFTHE CITY OF LOS ANGELES Governing Board of the Los Angeles Unified School District REGULAR MEETING STAMPED ORDEROF BUSINESS 333 South Beaudry Avenue, Board Room 1 p.m., Tuesday, September 10,2013 Roll Call Pledge of Allegiance Board President’s Reports Committee Reports and Other Items Superintendent’s Reports School Enrollment and Budget Update - Withdrawn Overview of the No Child Left Behind (NCLB) Waiverfor the California Office to Reform Education (CORE)Districts Consent Items Itemsfor action below assigned by the Board at the meeting to be adoptedbya single vote. Any item may be pulled off of consent for further discussion by any Board Memberat any time before action is taken. Old Business for Action 1. Board of Education Report No. 012 - 13/14 POSTPONED TO SEPTEMBER17,2003, Curriculum,Instruction, and School Support SPECIAL BOARD MEETING (Common Core Budget) Recommendsapproval of the Common Core Budget to advancestudent Jearning andcreate learning spaces designed to implement Common CoreState Standards. Public Notice of District’s Initial Proposals 2. Board of Education Report No. 035 - 13/14 PUBLIC HEARING Office of the General Counsel ADOPTED BY CONSENT VOTE (District Initial Proposals 2013-14 forall Classified and Certificated Bargaining Units) Initial negotiating proposals for the District’s Classified and Certificated bargaining units are made public and adopted by the Board before negotiations continue. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 1 1 p.m., 09-10-13 EXHIBIT A - 12 New Business for Action 3. Board of Education Report No. 021 — 13/14 ADOPTED Office of the Superintendent (Parent Empowerment Act Guidelines for Schools and Communities) Recommendsthe approval of the Parent Empowerment Act Guidelines for Schools and Communities as directed by Board resolution. Board of Education Report No. 022 — 13/14 ADOPTED Facilities Services Division (Facilities Services Division Contract Actions) Recommendsapprovalofactions that have been executed within the delegated authority including the approval of award of 13 new construction contracts for approximately $7.7 million, 9 job order contracts for $3.9 million, and 2 job order contract amendments for $2 million; 80 change orders for new construction and existing construction for $557,778; completion of 12 contracts; award of 13 informal contracts totaling approximately $174,117 million; the award of 2 negotiated sole source contracts for $1,615,290; the award of architectural and engineering extra services contracts and amendments for approximately $2.7 million; the award of 5 new professional and technical service contract not exceeding $250,000 for $590,000; and the award of five goods and general services contracts for $10 million. Board of Education Report No. 023 — 13/14 ADOPTED ProcurementServices Division (Procurement Actions) Recommendsapproval of procurementactionstaken by staff within the delegated authority of the Superintendent for professional services, agreement amendments and purchases within the delegated authority as described in AttachmentA fora total amount of approximately $6 million for curriculum andinstructional support, data compilation, student resources, professional development, Construction Bond Oversight Committee support, and 4,407 procurementtransactionsand low value contracts. Additionally , recommendsapproval of goods and general services contracts with agreements and amendments for amounts over $250,000 not under the delegated authority as detailed in Attachment B, including wall fold tables and benches for approximately $31 million. Also, approves two legal services contracts under previously approvedauthorization amounts and salvage textbook revenue. Board of Education Report No. 024 — 13/14 ADOPTED BY CONSENT VOTE Human Resources Division (Routine Personnel Actions) Recommendsapproval of 4,640 routine personnel actions such as promotions, transfers, leaves, etc. Board of Education Report No. 025 — 13/14 ADOPTED Human Resources Division (Nonroutine Personnel Actions) Recommendsthe dismissals of two classified employee and the suspension dismissals of one classified employees. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 2 1 p.m., 09-10-13 EXHIBIT A - 13 10. 11, 12, 13. 14. Board of Education Report No. 026 — 13/14 ADOPTED BY CONSENT VOTE Accounting and Disbursements Division (Unaudited Actuals Report for Fiscal Year 2012-13 and Gann Limit Resolution) Recommends approvalof the Unaudited Actuals Report for Fiscal Year 2012-13 the annual statementofall receipts and expenditures of the District, the submission of the statement to the Los Angeles County Superintendent of Schools, and the Gann Limit Resolution, Board of Education Report No. 027 — 13/14 ADOPTED BY CONSENT VOTE Accounting and Disbursements Division (Report of Warrants Issued, Request to Reissue Expired Warrants and Donations of Money) Recommendsapproval of warrants for things such as salary paymentsfor a total value of $190,093 404.22, the reissuance of three expired warrants totaling $1,051.25, and the acceptance of eleven donationsto the District totaling $931,176.00. Board of Education Report No. 028 — 13/14 ADOPTED Charter Schools Division (Amendment to LAUSD Administrative Procedures for Charter School Authorization to Include Criteria and Procedures for Materia] Revision) Recommendsthe approval to amend the LAUSD Administrative Procedures for Charter School Authorizing to include criteria and procedures for material revision of charters. Board of Education Report No. 030 — 13/14 ADOPTED Facilities Services Division (Authorization to Issue a Notice of Intent to Lease Four Closed SchoolSites to an Operator that will Finance, Redevelop and Operate a Permanent Facility) Recommendsthe approval to authorize the Chief Facilities Executive and or his designee to issue a Notice of Intent to Lease four closed schoolsites: Collins, Highlander, Oso and Platt Ranch Elementary Schools. Board of Education Report No. 031 — 13/14 ADOPTED BY CONSENT VOTE Facilities Services Division (Ratification of Real Estate Leases, Licenses, and Other Agreements or Instruments that are Necessary or Incidental for the Use of Real Property) Recommendsratification of real estate leases and other agreements executed by staff under delegation of authority and includes cases where the District is tenant and where the District is landlord. Board of Education Report No. 032 — 13/14 ADOPTED Human Resources Division (Application for Institute of Education Sciences Grant) Recommendsapproval to authorize the Human Resources Division to apply as a Co-Principal Investigator with the University of California-Berkeley for Continuous ImprovementResearch in Education Grant from the Institute of Education Sciences in the amount of $2,500,000. Board of Education Report No. 034 — 13/14 ADOPTED BY CONSENT VOTE Intensive Support and Intervention (Race to the Top District Competition Grant Application) Recommendsauthorization to submit the Raceto the Top District competition grant application to the United States Department of Education for the amount of $30 million. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 3 1 p.m., 09-10-13 EXHIBIT A - 14 15. Board of Education Report No. 036 — 13/14 POSTPONED TO REGULAR BOARD Office of the Superintendent MEETING OF OCTOBER1,2013 (Superintendent’s recommendation in responseto the Establish Fiscal Priorities and Equitable and Enriching Learning Environments for LAUSD Students and To Engage the Los Angeles Unified SchoolDistrict Community and Establish Fiscal Priorities Resolutions) Recommends approval of the Superintendent’s recommendationsin responseto the Establish Fiscal Priorities and Equitable and Enriching Learning Environments for LAUSD Students and To Engage the Los Angeles Unified School District Community and Establish Fiscal Priorities Resolutions. Board MemberResolutions For Action 16. POSTPONED TO THE FIRST REGULAR BOARD MEETING OF JANUARY2014 Ms. Galatzan, Ms. Garcia - Local Control Funding Formula Strategy and Implementation (Noticed June 4, 2013 and Postponed from the Regular Board Meeting of June 18, 2013) Whereas, Governor Jerry Brown’s proposed Local Control Funding Formula (LCFF)attempts to rectify longstanding funding disparities between schooldistricts across California; Whereas, The LCFF aimsto simplify education funding, and create a system that is transparent, clear and equitable; Whereas, The LCFF does away with categorical funding, much of which no longerservesits intended purpose; Whereas, The LCFF aims to make education funding equitable, but not equal, and to leave no studentin the state behind; Whereas, To make sure funding is equitable, and recognizing that some students need more services than others, the LCFFallocates additional funding to students who live in poverty, are foster children, or are English Learners (“supplemental” funding), and further funding on top of that to districts where more than half the students fall in one of those categories (“concentration” grants); and Whereas, Every child in the Los Angeles Unified School District is entitled to a certain level of basic services to support his or her education; now, therefore beit Resolved, That the Governing Board of the Los Angeles Unified School District will continue to advocate for Governor Brown’s proposed Local Control Funding Formula in Sacramento; Resolved further, That when education funds cometo the District in the form of “supplemental” funding and a “concentration” grant, that money will follow the child to the schoolsite: Resolved further, That the Superintendent and his staff will come back in 90 days with different allocation models where the dollars follow the child; Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 4 1 p.m., 09-10-13 EXHIBIT A - 15 Resolved further, That those models will take into consideration the base level of funding every school needs to survive and thrive—regardless of zip code, size or composition; Resolved further, That the Superintendent will bring back a timeline to the Board for determining whatthat base level of fundingis; and,be if finally Resolved, That the above process to determine what services and programsare part of a school’s base funding will include parent, school, and community participation. 17. Mr. Kayser - Supporting a Pathway to U.S. Citizenship through Adult Education (Noticed June 18, 2013 and Postponed from the Regular Board Meeting of August 20, 2013) POSTPONED TO REGULAR BOARD MEETING OF OCTOBER1, 2013 Whereas, The 1986 Immigration Reform and Control Act (IRCA) reformed the United States immigration law which granted legal status to more than 3 million of the nations undocumented immigrants; Whereas, When Congress passed the IRCA of 1986, it required the 3 million undocumented immigrants who were legalized underthat law to enroll in at least 40 hours of English courses before obtaining green cards; Whereas, Currently this numberhas increased to 12 million undocumented immigrants in the United States, and of which 3 million reside in California and 900,000 are students; Whereas, The proposed 2013 Immigration Reform Act will removebarriers for thousands of students makingit the first critical step in supporting education for our students; Whereas, With the passage of the 2013 Immigration Reform Act, the adult English as a Second Language (ESL) system would face challenges, including the influx of thousands of new students; Whereas, The current system in place for teaching English to the nation’s immigrants, state and federally funded classes, has been greatly reduced by state budget cuts since the recession began andthere 1s insufficient funding currently to meet the needs of the numbers of people who both need and want English-languageinstruction; Whereas, The Governing Board of the Los Angeles Unified School District in 2007-2008 served approximately 406,700 students and in 2012-2013 served approximately 99,900 in the Adult and Career Education Division; and Whereas,In the 2013-2014 year the Adult and Career Education Division has only budgeted for an average of 53 ten hour a week ESL classes in each of the 10 adult service areas in the District; now, therefore, be it Resolved, That the Governing Board of the Los Angeles Unified School District directs the Superintendent and the Office of Government Relations to work with Governor Jerry Brown, the State Legislature, and Federal representatives to address the inequitable funding system in adult education, specifically ESL classes, that have been historically underfunded and are now negatively impacted by flexibility. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 5 1 p.m., 09-10-13 EXHIBIT A - 16 18. Mr. Zimmer~ Arts at the Core: Implementing the Arts Education and Creative Network Plan (Noticed on August 20, 2013, 1 p.m.) ADOPTED AS AMENDED Whereas, The Los Angeles Unified School District, affirming its commitmentto providing all students with equitable and rigorous learning opportunities and curricula to provide graduates with the skills and knowledge necessary for college readiness, career training and preparation forlife after high school, unanimously adoptedthe historic Arts at the Core Resolution on October 9, 2012; Whereas, The Arts Education and Creative Network Plan presents a comprehensive strategy for integrating arts instruction with the Common Core State Standards; Whereas, The Arts Education and Creative Network Plan identifies the need to expand collaboration and strategic partnerships among nonprofit and governmentagenciesqualified to assist the District in implementing an updated shared delivery model, meaningful data collection and the documentation and dissemination of best practices in arts education; Whereas, The Superintendent was charged with developing an implementation planthat includes: = Increased funding for both discrete and integrated arts education for all students in the District; " Support for high quality professional development in pedagogyand curriculum; " Systemic data collection to measure the progressof student learning in and throughthearts; = Oversight for implementation across the District and annual benchmarksfor success, " A budget, within five years or sooner, that matches or exceeds funding levels from the 2007-2008 academic year, in order to help ensure sequentialarts course offerings for all elementary and secondary schools; = Strategies for increasing the numbers of elementary arts teachers, within 10 years or sooner, to be commensurate with otherlarge, urban districts such as Dallas, New York City, Chicago, Seattle, Pittsburgh, and Philadelphia, and for increasing the numberof middle schoolarts teachers to ensure a minimum ofthreearts disciplines offered in every middle school; " Policy guidelines that are consistent with the California Department of Education guidelines that allow use of state and federal categorical funds for research basedarts educationstrategies to bridge the achievement gap through improving student achievement in English Language Arts (ELA) and Mathat Title I schools and for other categorical funds that may be used for professional development, strategic partnerships with nonprofit arts organizations, model program developmentand the disseminationof best practices; " Budgeting provisionsfor individual schoolsites to receive a dollar amount each year, based on studentenrollment, to supplement centrally funded teachers for purposes suchasart supplies, additional days of credentialed elementaryarts teacher services, secondary off- norm credentialed arts teachers, arts productions, professional development and qualified services from external arts partners; and " Provisionsfor recruiting, training, evaluating and retaining highly qualified arts teachers for the future, reaffirming the District's current commitmentto protect an adequate number of credentialed and tenuredarts teachers and centrally funded dedicatedarts teachers, to ensure foundationalinstruction in the arts from future Reductions in Force; now, therefore beit Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 6 1 p.m., 09-10-13 EXHIBIT A - 17 Resolved, That the Governing Board of the Los Angeles Unified School District recognizes and commendsthe positive momentum made by the Superintendentandhisstaff toward achieving the requirementsof the Arts at the Core Resolution through the Arts Education and Creative Network Plan; Resolved further, That the Board adopts the Arts Education and Creative Network Plan as a working documentto be revised on an ongoingbasis until each criterion ofthe resolutionis achieved; Resolved further, That the Board directs the Superintendentto continue, expand, renew or join any alliance that seek to increase the funding base neededto ensurethat a quality arts education and instruction is a right for every studentin the District; and, beit finally Resolved, That the Board directs the Superintendent to report back to the December 3, 2013 Curriculum,Instruction and Assessment Committee meeting, on the implementation ofall strategies called for in the Arts Education and Creative Network Plan within sixty days with particular emphasis on: 1. A plan for distributing and supporting the use ofstate and federal guidelines to administrators and schoolsite stakeholders regarding the appropriate and legal use of Title [and other categorical funds to support activities related to the arts as part of instructional strategies designed to improve the academic achievementofat-risk students so they can meet California academic standards; 2. A plan for integrating comprehensive arts education-and integrated arts teaching and learning with the implementation of CommonCore State Standards(CCSS)and the Local Control Funding Formula (LCFF); 3. A plan for data collection and information dissemination to ensure accurate and transparent information regarding equitable access to arts education for all LAUSD students; 4. Somebudget ideasthat will significantly increase fundingfor arts education to levels that ensure sequential arts courses for all elementary and secondary schools beginning in Academic Year 2014 — 2015. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 7 1 p.m., 09-10-13 EXHIBIT A - 18 19. Ms. Galatzan, Ms. Garcia, Mr. Zimmer - Increasing Parent Engagement ThroughDistrict Volunteer Programs (Noticed on August 20, 2013, 1 p.m.) ADOPTED AS AMENDED Whereas, The purpose of the Los Angeles Unified School District School Volunteer Program is to “enhance student achievement by engaging and leveraging the rich talents and expertise of our local school communities.””; Whereas, Oneofthe District’s five core beliefs is that “families are our partners,” and one ofthe District’s five goals is “parent and community engagement.”’; Whereas, School volunteers reinforce classroom learning by assisting teachers in classrooms with non-instructional tasks and supporting school personnel in the effective operation of schools; Whereas, School volunteers promote positive partnerships between the home,schools, and the community andserve as positive role models for students by helping them develop morepositive attitudes about themselves, their schools, and their communities; Whereas, Research showsthat parental involvementis associated with higher student achievement outcomes, including grades, standardized test scores, and a variety of other measures like teacher ratings’; Whereas, Accordingto the District’s Parent and Community Student Services Branch (PCSB), volunteers are a vital resource for many schools, and LAUSD processed approximately 14,000 school volunteers in the 2012-13 school-year; is-hometo-over-50-000-velunteersDistrict wide. Whereas, The School Volunteer Program Office was cut and the responsibilities were shifted to the PCSBin 2010 without any extra funding or resources; Whereas, While many District services were cut during the last five years dueto dire financial straits, small investments in parent engagement and involvementyielded huge and invaluable rewards; Whereas, Thecurrentfingerprinting fee of $56 is required for persons volunteering in any school for more than 16 hours per weekor less than 16 hours per week, but with significant contact with students; ' LAUSDPolicy Bulletin 5678.1, Office of Curriculum,Instruction, and School Support. ? LAUSD.District Goals: LA USD’'s Core Beliefs. Retrieved from http://home.lausd.net/apps/pages/indexjsp?uREC_ID=178744&type=d&pREC_ID=371407. ? LAUSD.District Goals. Retrieved from http://home.lausd.net/apps/pages/index.jsp?uREC_ID=178744&type=d&pREC_ID=371200. “ Jeynes, W. H. (2005). Parental involvement and student achievement: A meta-analysis (Family Involvement Research Digest). Cambridge, MA: Harvard Family Research Project. Retrieved July 9, 2013, from http://www .gse.harvard.edu/hfrp/publications_resources/publications_series/family_involvement_research_digests/parental_involvement_and _Student_achievement_a_meta_analysis. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 8 1 p.m., 09-10-13 EXHIBIT A - 19 Whereas,Currently, volunteers must commute up to 35 milesto be fingerprinted at the District Headquarters, even thoughin the past, volunteers could also go to one of the Youth Services satellite fingerprint sites that were available throughout the District; Whereas, Tuberculosis (TB) screenings for persons interested in volunteering can cost up to $40 at some vendorsites, but are offered for free or at a low cost at othersites, including community clinics and District Wellness Centers; Whereas, Since approximately 80 percent of District students qualify for free- or reduced-price meals, high fees and long commutescan prevent or discourage low-income families from participating as volunteers in their local schools; and Whereas, The PCSB has been workingto strengthen the volunteerpolicy, so that it is more efficient, affordable and welcoming to school volunteers and less burdensomefor schools; now, thereforebeit Resolved, That the Governing Board of Los Angeles Unified SchoolDistrict directs the Superintendent to examineeasier and more affordable options for fingerprinting services and to work with the District’s Human Resources Division and Employee Relations team to provide fingerprinting services every month at all 9 43 LAUSDLiveScansites throughoutthe District; Resolved further, That volunteers who work at school sites over 16 hours a year, follow the same requirements for TB testing as the District requires for employees; Resolved further, That the District’s School Volunteer Program Bulletin (5678.1) must include an attachmentthat contains an expandedlist of LAUSD Wellness Centers and community clinics—at least one in each Board District—that offer TB screenings for no cost or a low cost; Resolved further, That the Board directs the LA Trust Wellness Centers and the District’s Nursing Services Division to support on-site TB testing throughoutthe District, as a result ofthis resolution; Resolvedfurther, That the Superintendent shall examine the feasibility and funding optionsto support the creation and managementofanonline volunteer application system to be implemented in the 2013-14 school year; Resolved further, That the District develop a communication plan—suchas beginning of the year packets for current District students and enrollment packets for Kindergarteners and new enrollees— to inform parents of the LAUSD School Volunteer Program,and explore new waysof promoting the volunteer program using multi-media: one to two times a year atleast-once-inthe fall nd-once-in-th spring at each Educational Service Center, in which prospective volunteers can get fingerprinted, TB tested, checked on Megan’s Law List, and complete the volunteer application (online, if applicable) all in the same day andlocation; and, be-itfinally. Resolved further, That the District shall organize and carry out a one-stop-shop “Volunteer Day,” Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 9 1 p.m., 09-10-13 EXHIBIT A - 20 Resolved further, That schools and offices in Board district 1 be excluded from the provisions of this resolution as allowed by law; and,be it finally Resolved, That the Superintendent report back to the Board in 30 days with an implementation plan—including the timeline, communication, feasibility, and long-term funding options —that addressesall of the previously mentioned policy changesandfeasibility issues for the 2013-14 academic year. 20. Mr. Kayser, Dr. Vladovic — Support of AB 700 (Gomez) (Noticed on August 20, 2013, 1 p.m.) ADOPTED Whereas, The Los Angeles Unified School District is committed to creating opportunities and utilizing resources so that our graduates will be engaged and effective citizens in our society; Whereas, Assemblymember Jimmy Gomez (D-Los Angeles) has authored and introduced Assembly Bill 700 that aimsto provide children in California a more in-depth education on the voting andelectoral process and the tools they needto be civically engaged as they grow into adulthood; Whereas,Existing law requires that the State Board of Education requests a review and revision of course requirementsin the history-social science framework; Whereas, The California education code requiresall high school graduates to have completed and passed a course in United States governmentandcivics; Whereas, AB 700 would require that when the history-social science frameworkis revised, the Instructional Quality Commission (IQC)include voter education information in high school American governmentandcivics courses; Whereas, While the contentof the District’s current material addresses the voting process and the importance of voting, AB 700 aims to expand uponthe current material including, but not limited to; how to research ballot propositions, how and whereto find further candidate information, and voting rights; Whereas, Historically, young voters, ages 18-24, have been underrepresentedin elections, as shownin the November 2010 nationalelection with only 45% of eligible young voters registered; Whereas, Young voters are expectedto increase to onethird ofall eligible voters in the United States by 2015, it is important to expand the resourcesavailable to our future electorate; Whereas,California has a responsibility to increase civic engagement,not only with first generation voters, but also with the children of newly- registered voters; Whereas, California is home to many new immigrants, including Latino and Asian families, who are and will continueto be a vital part of our economy; Whereas,It has been foundthat many times children of non-English-speaking parents have taken on the duty of translator, teaching their own parents how to navigate the electoral process, reading andinterpreting candidate statements and propositions; and Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 10 1 p.m., 09-10-13 EXHIBITA - 21 Whereas, Assemblymember Jimmy Gomez andthe District wish to create more effective opportunities for students to become engagedcitizens; now, therefore, beit Resolved, That the Governing Board of the Los Angeles Unified SchoolDistrict supports Assembly Bill 700. 21. Mr. Kayser, Mr. Zimmer — Elementary Physical Education (Noticed on August 20, 2013, 1 p.m.) ADOPTED Whereas, The U.S. Surgeon General, Centers for Disease Control and Prevention, National Institute for Health, Government Accountability Office, Institute of Medicine, and National Association for Sport and Physical Educationall identify increasing physical activity, through quality physical education programs, as one of the mostcritical things to fight the childhood obesity epidemic; Whereas, The California State Legislature has found and declaredthat“the physical fitness and motor developmentofchildren in the public elementary schools is of equal importanceto that of other elements of the curriculum”(Cal. Educ. Code § 51210.2[a]); Whereas, California voters are in “nearly unanimous agreement” (97%) thatit is importantfor schools to encourage more physical activity during the school day; more Californians favor physical education in schools than any other obesity prevention policy, across most party and socioeconomiclines; and 89% support requiring physical educationclasses for four years in high school, according to 2012 and 2011 Field Polls commissioned by The California Endowment; Whereas, A John Hopkins University study showedthat for every weekday an adolescent participated in physical education classes the odds of becoming an overweight adult decreased by five percent andparticipating in physical education classes everyday decreased the odds of becoming an overweight adult by 28 percent; Whereas, Evidence-basedresearch published by the Institute of Medicine, the California Endowment, and others documentsthe importance ofquality physical education teachers and programsto improve student health, youth development, and academic performance; Whereas, A study by the California State Board of Education foundthat children engagedin daily physical activity outperformed other students on exams, exhibited superior academic performance andattitudes toward school, improved scores on short-term memorytests and reaction times and increasedcreativity; Whereas, The Institute of Medicine and The City Project recommendteachersreceive training and ongoing professional developmentin physical education; Whereas,In a pilot program at four elementary schools (Marvin, Allesandro, Overland and Norwood Elementary Schools in Los Angeles County) with increased physical activity minutes and quality physical education, students’ API scores increased (40, 22,32, and 17 points respectively) as did their fitness level, and Norwood over a four-year period increased 65 points; Whereas, Evidence-based research by The City Project and Samuels & Associates found that secondary school teachers provided more moderateto vigorousphysical activity than elementary Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 11 1 p.m., 09-10-13 EXHIBIT A - 22 teachers, potentially attributable to the fact that secondary schoolteachers are disproportionately oneswith specialized training and credentials in physical education; Whereas, A majorreport by the Institute of Medicine on physical education and physicalactivity in school, recommendsthatat least half of physical education class time be spent engaged in moderate to vigorous physical activity; Whereas, Evidence-based research published bythe Institute of Medicine and the California Endowment documentshealth disparities based on race, color,national origin, gender, and socioeconomic status; Whereas, The report by the Institute of Medicine recommendsthat physical activity be considered in all schoolpolicy decisions to improve academic performance, health, and developmentforall children; and that physical education andactivity be monitoredin school; Whereas, The District’s own Office of Inspector General foundin an internal audit thatthe district elementary physical education program wasnot in compliance with District policy. 11 of the 22 (55%) elementary schools visited did not have proof of school wide schedule of physical education; and Whereas, The California Court of Appeal has held that districts can be sued for failure to comply with the California Education Code minutes requirement andthat parents and students have standing to sue when a schooldistrict fails to comply; now, therefore,be it Resolved, That the Governing Board of the Los Angeles Unified SchoolDistrict directs the Superintendentto ensure the all Physical Education Teacher Incentive Program is funded funding is-restered_toits-specifie-status, to provide physical education instruction by teachers with a single subject credential in physical education in elementary schools and provide equipment and supplies; Resolved further, That the Superintendentidentify the schools that previously received the funding, so that they have the first priority to continue their funding; Resolved further, That the Superintendent prioritizes funding for under-resourced schools; Resolved further, That the Superintendentdeliver to the Board by-September-+ 2013, an implementation plan created by OCISS Physical Education department to equitably apply the fundingto other elementary schools throughoutthe following years; Resolved further, That the Superintendentdeliver to the Board an annual report on compliance with this motion andresolutions for any corrective actions needed before the end of each school year; Resolved further, That the Superintendentensurethatall District physical education bulletins are reviewed, updated and disseminated to ensure compliance with state and federal education codes within 60 days; andbeit finally Resolved, That options for funding shall include but notbe limited to Federal and State grants, foundation and private sector support, and identified cost savings to fund existing PETIP schools for the 2013-14 school year. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 12 1 p.m., 09-10-13 EXHIBIT A - 23 22. Ms. Garcia — Deaf and Hard of Hearing Awareness Month (Noticed on August 27, 2013, 1 p.m.) ADOPTED BY CONSENT VOTE Whereas, The Los Angeles Unified SchoolDistrict is committed to providing a quality education to all students; Whereas, Approximately 37 million deafand hard of hearing peoplelive in the UnitedStates, three million in California, and over 800,000 in Greater Los Angeles and surrounding counties: Whereas, 90 percentof deaf children are born to hearing families; and 90 percent of deaf families give birth to hearing children; Whereas, 2,061 District students are deaf and hard of hearing; Whereas, 88 percent of deaf and hard of hearing students are mainstreamedin District schools; Whereas, 70 percent of deaf and hard of hearing students are in the Itinerant (mainstream classrooms) program,8 percent of deaf and hard ofhearing studentsare in the Oral Programs; 10 percentof deaf and hardof hearing students are in the Total Communication Programs; and 12 percentof deaf and hard of hearing students are in Bilingual/Bicultural — American Sign Language and English — program; Whereas, TheDistrict finds each student, with his/her unique needsand exceptionalities, to be an important and contributing member of our school community; Whereas, There have been numerous contributions by the deaf community throughouthistory; Whereas, Los Angeles has numerous organizations such as California State University Northridge, Greater Los Angeles Agency on Deafness, John Tracy Clinic, Five Acres, Peace Over Violence, and many others dedicated to providing services to the deaf community; Whereas, American Sign Languageis the third-most used languagein the United States: Whereas, Deaf Awareness Weekis celebrated during the month of September, and is highlighted for the past 14 years by the Los Angeles DEAFestival, which promotes self esteem within deaf community, provides information on available resources, educates the general public, and enhancestheprofile of deafartist in Los Angeles; and Whereas, The District actively seeks to meet the mandates of the Modified Consent Decree, identifying and educating special education students in a manner consistent with state and federal special education andcivil rights, now, therefore, be it Resolved, That the Governing Board of the Los Angeles Unified School District hereby proclaims the month of September 2013 as “Deaf and Hard of Hearing Awareness Month”anddirectsthe Superintendentandall District staff to promote education and awareness about the talents and abilities of those whoaredeaf, hard of hearing and deaf-blind. Schools shall include these activities as part of the curriculum wherever appropriate throughoutthe school year. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 13 1 p.m., 09-10-13 EXHIBIT A - 24 23. Mr. Zimmer— Proposition 39 (Waiver of Board Rule 72) ADOPTED AS AMENDED Whereas, The Los Angeles Unified School District (“LAUSD”) has authorized more charter schools than any other schooldistrict in the nation; Whereas, More than 100,000 students currently attend charter schools operating within LAUSD’s boundaries; Whereas, Each year LAUSD receives more requests for facilities from, and makes morefacilities available to, charter schools pursuant to Education Code section 47614 (“Proposition 39”) than any other schooldistrict in the state; Whereas, For decades children attending LAUSDschools have endured deteriorating and overcrowdedconditions, resulting in multi-track year round academic calendars, involuntary busing away from neighborhood schools, use of temporary classroom buildings, and other harmful and negative obstacles to academic achievementandstudent safety; Whereas, To help relieve overcrowding, remedy the aging and deteriorating infrastructure of LAUSDschools, improve student learning environments, and provide all children with the opportunity to attend a neighborhood K-12 school operating on traditional two-semester calendar, the voters of Los Angeles approved several ballot measures since 1997 to fund efforts to build new schools and provide existing schools with needed repairs and modernization; Whereas,Asa result of these efforts, to date 130 new K-12 schools have been built, more than 23,000 modernization and repair projects have been completed, over 99% of LAUSDschools now operate ona traditional two-semester calendar,involuntary busing has decreased 98%, full-day kindergarten has beeninstituted, and no LAUSDschools operate on a Concept6 calendar; Whereas, Despite these achievements, more than $60 billion in unmet capital needs have been identified across LAUSD, facilities do not align with the educational needsof schools, core facilities havestill not been restored, operational funding for deferred maintenance does not keep up with capital needs, and overcrowdinghas severely increased wear and tear of buildings and decreasedtheir life expectancy; Whereas, Despite the right of children in LAUSD’straditional schools to not be forced to learn in the overcrowded, unsafe and unacceptable conditions of the past, LAUSD’s efforts to comply with Proposition 39 has caused it to incursignificant costs, administrative¢and programmatic|burdens, displace children attendingtra itionalLAUSD schools and dislocate ¢ororeliminate vital ‘educational programs, to ensure compliance with the facilities requests from charter schools; and Whereas, The challengestraditional LAUSDschools have beenfacing as a result of Proposition 39 charter school co-locations on LAUSD campusesandthe solicitation of LAUSD pupils for the purposeof attending charter, private or other non-LAUSDschools have been broughtbeforethe Board of Education in recent meetings; now beit Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 14 1 p.m., 09-10-13 EXHIBIT A - 25 Resolved, That the Governing Board of the Los Angeles Unified School District directs the Superintendentand the Office of GovernmentRelations to engage the Office of the State Superintendent of Public Instruction, the State Board of Education, the California legislature and or any other governmentalentities, as appropriate, to review and analyze potential clarifications and or amendments to Proposition 39 andor its implementing regulations, to ensure LAUSD students are not forced to endure the burdensofan unfair sharing of schoolfacilities; Resolved further, That the Superintendent will convene a Colocation Working Group consisting of LAUSDprincipals who are sharing campuses, charterprincipals, and or operators with colocation experience, ESC Superintendents, and appropriate representation from District staff such as Facilities, the Charter Schoo! Division, and others, to report back in 90 days with recommendations for processes that would improve the colocation experienceforall public school students; andbeit finally Resolved, That the Board of Education directs the Superintendentreview-and,ifnecessary, implement to report back within 30 days on existing and or proposed new LAUSD policies and guidelines regarding restricting the solicitation of LAUSD pupils on LAUSD grounds for the purposesof attending charter, private, or other non-LAUSDschools. 24. Mr. Zimmer — Investing Priorities for Equitable Learning Environmentsfor all LAUSD Students (Waiverof Board Rule72) For Action at the October 1, 2013 Regular Board Meeting Whereas, The passage of Proposition 30 and the Governor’s Local Control Funding Formula proposalpresent the Los Angeles Unified School District an opportunity to stabilize schools, imvest in programsthat support improved student achievement,restore essential positions and restore some of the sacrifices made by employeesso the District could survive the budgetcrisis; Whereas, Declining enrollment, Federal sequestration, and an unstable long-term financial picture require LAUSDto make balanced, strategic and informed budgetdecisions to ensure school community stability in the coming years; Whereas, Five years of devastating cuts to basic programsand services at school sites have dramatically affected the resources available to students and families and have negatively affected academic experiences; Whereas, LAUSD employees have not beenable to receive Cost Of Living Adjustmentincreases throughoutthe budgetcrisis; and Whereas, Board of Education resolutions have directed the Superintendent and the Board to engage parents, community and our bargaining unit representatives, in soliciting input on priorities for the Board to use when implementing the Local Control Funding Formula; now, therefore beit Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 15 1 p.m., 09-10-13 EXHIBIT A - 26 Resolved, That the Superintendent, in accordance with District goals, policies and mandates, prioritize stabilizing schools, re-hiring staffto fill needed positions and restoring programsas the first round of LCFF funding is delivered to the District and the Superintendent delivers budget priorities to the Board; Resolved further, That the Superintendentbe guided by the following principles as he develops stabilization, re-hiring and program restoration plans: Increasing student achievement and graduation Brining LAUSDinline with national averagesfor class size, counselorratios, administratorratios, andclerical and classified ratios; Eliminatingthe statutory rehire lists and returning severed employees working in temporary status to permanentstatus; Increasing student, staff and community safety in and around our school communities; and Seeing inputon fundingpriorities from parents, students, staff, and community members and bargaining units; and Resolved, That the Superintendentalso prioritize incremental salary restoration forall employees to meetat least the State statutes for Cost of Living Adjustments (COLA)for the 2012-13 fiscal year and work with our bargaining unit partners to developa strategy for District-wide restoration over time; andbe it finally Resolved further, That the Superintendent work with parents, students, community and bargaining units to develop immediatepriority issues to be considered for funding, should Local Control Funding Formula funding be released during the 2013-14 schoolyear. CorrespondenceandPetitions 25. Report of Correspondence APPROVED Miscellaneous 26. Adoption of Board Meetings Schedule October 2013 through June 2014 ADOPTED AS AMENDED Board MemberResolutions for Initial Announcement 27. Ms. Garcia — Celebrate Latino Heritage Month through the Lens of Our Students For Action at the October 1, 2013 Regular Board Meeting Whereas, The mission of the Los Angeles Unified SchoolDistrict (District) is to provide every student with a high-quality education so that every student graduates college-prepared and career ready; Whereas, More than 73% of the District’s elementary and secondary students are Latino; Whereas, The United States Congress approved Public Law 90-498 in 1968 to designate the week of September 15th as “National Hispanic Heritage Week”and in 1988 it was expanded by Congress to a month-long celebration (Sept. 15 - Oct. 15); Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 16 1 p.m., 09-10-13 EXHIBIT A - 27 Whereas, Understanding Latinohistory andculture is an importantpart of celebrating Latino Heritage Month; Whereas, Many Latinostrace their roots to Indigenous, African or European ancestry, as well as to Mexico, Central America, South America and the Caribbean; Whereas, The September-October period covers a wide range of Independence Daysfor the Latin American countries of Central America, South America, the Caribbean and Mexico; Whereas, Latino Heritage Monthis a time when Latinos honortheir spirit of self-determination, dignity, and respectfor cultural heritage; Whereas, Latino Heritage Month celebrates the history and culture of the nation’s Latinos and acknowledges their influence onpolitics, the economy, andthe social andculturallife throughout the United States; Whereas, Many Latinostudentsare bilingual and challenge themselves daily to succeed in both languages; Whereas,Latino students of this generationare still considered the descendants of the American Dream; Whereas, Those persons who have come from Latin American countries have long added a special quality and enrichmentto the cultural heritage and institutions of the United States, the State of California, the City of Los Angeles and the Los Angeles Unified School District; now, therefore, be it Resolved, That the Governing Board of the Los Angeles Unified SchoolDistrict hereby promotes September 15th through October 15th as Latino Heritage Month; and, beit finally Resolved, That by adoptionof this resolution, the Board hereby encourages all students, faculty, administrators, and parents, to rememberandcelebrate the contributions that Latinos have made to California and the United States. 28. Ms. Garcia — Safe and Fun Walk to School Day (For Action at the October 2013 Meeting) For Action at the October 1, 2013 Regular Board Meeting Whereas, The Los Angeles Unified School District strives to uphold the health and safety ofall our students; Whereas, Thelives of hundreds of children could be saved each year if communities take steps to make pedestrian safetya priority; Whereas, A lack of physical activity plays a leadingrole in rising rates of obesity, diabetes and other health problems amongchildren and being able to walk or bicycle to school offers an opportunity to build a fun activity into daily routine; Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 17 1 p.m., 09-10-13 EXHIBIT A - 28 Whereas, Driving students to schoolby private vehicle contributesto traffic congestion andair pollution; Whereas, An importantrole for parents and caregiversis to teach children about pedestrian safety and become awareofthe difficulties and dangers that children mayface on their trip to school each day and the health and environmentalrisks related to physical inactivity andair pollution; Whereas, Community leaders and parents can determine the “walkability” of their community by using a walkability checklist; Whereas, Community membersand leaders should make a plan to make changesto enable children to safely walk and bicycle in our communities and developa list of suggestions for improvements that can be doneovertime. Whereas, The City of Los Angeles and the Los Angeles Unified SchoolDistrict are working collaboratively to develop and implementa Safe Routes to School Strategic Plan to enhance the safety, health and physical fun of our students and future walkers. Whereas, Children, parents and community leaders around the world are joining together to walk to school and evaluate walking and bicycling conditions in their communities; now therefore, beit Resolved,that the Governing Board of the Los Angeles Unified School District proclaims October9, 2013as “International Walk to School Day” and encourages everyoneto considerthe safety and health of children today and every day. 29. Ms. Garcia — Drive Safely for Me: Texting - It Can Wait For Action at the October 1, 2013 Regular Board Meeting Whereas, The Los Angeles Unified School District believes the safety of the students on and around our schools is of paramount concern; Whereas, Text messaging is the main mode of communication for most American teenagers with half of all teens sending between 21 and 70texts a day; Whereas, Nearly 50 percent of commuters text while behind the wheel; Whereas, Texting takes one’s eyes off the road for an averageoffive seconds; Whereas, A driver that sendsa text message while driving not only jeopardizes his or her safety, but also the safety of passengers, pedestrians, and other drivers; Whereas Drivers whoread or send texts while behind the wheel are more likely to cause crashes — often leading to life changing injuries and deaths; Whereas, Itis illegal to send electronic text messages while driving in the state of California; Whereas, To put an endto texting and driving, AT&T launched the It Can Wait campaign, asking every driverto join in making a personal commitmentnotto text and drive; and Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 18 1 p.m., 09-10-13 EXHIBIT A - 29 Whereas, Through ItCanWait.com, Facebooktext-to-pledge, tweet-to-pledge and events, more than 2 million people have committed to nevertext and drive; now therefore beit Resolved, That the Board of Education of the City of Los Angeles promotessafe driving within the boundaries of the Los Angeles Unified SchoolDistrict and throughout our nation, and hereby joins all efforts to educate the general public about the danger of texting while driving; and beit finally Resolved, that the Board of Education of the City of Los Angeles declares September 19" as “Drive 4 Pledges Day” andasks all community members,parents, andstaff to drive safely for our students. 30. Ms. Garcia — Celebrate National Coming Out Day, Building Allies for Safe Schools For Action at the October 1, 2013 Regular Board Meeting Whereas, National Coming Out Day was founded 25 years ago by two Angelenos whoenvisioned a world wherelesbian, gay, bisexual and transgender and questioning (LGBTQ) people could live truthfully and openly. They believed that honest and genuinerelationships would underminethe pervasive prejudice about LGBTQ concerns. Twenty-five years later, that vision still holdstrue. Whereas, The Los Angeles Unified School District models, advocates and promotes the safe and respectful treatment of all our members; Whereas, The month of October is recognized as National Bullying Prevention Month and LGBTQ History Month; Whereas, October 11" is recognized as National Coming Out Day, the 25" celebration of the day that promotes a safe world for LGBTQ individuals and their allies to live truthfully and openly; Whereas, LGBTQ students who can identify an out LGBTQ schoolstaff or adult ally report a dramatic increase in feeling safe overall at their school; Whereas, Almost 25% of students either have an LGBTQ family member or identify as LGBTQ themselves; Whereas, Sexualorientation and gender expression-biased bullying is among the most common formsof harassmentin schools; Whereas, School dropout rate for LGBTQ studentsis upto triple the nationalrate of non-LGBTQ students, due to peer harassmentandbullying; Whereas, Westrive to ensure that District schools are consistently safe and affirming spacesfor all students and their families; Whereas, HumanRelations, Diversity and Equity and Project 10 are resources for trainings, consultation, activities, lessons, and service-learning projects for and about LGBTQ concerns and are committed to fostering a safe and respectful District, school and community culture; and Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 19 1 p.m., 09-10-13 EXHIBIT A - 30 Whereas, By recognizing National Coming Out Day wereaffirm our commitmentto the 1988 Governing Board of the Los Angeles Unified SchoolDistrict's Resolution for the Respectful Treatment of All Persons; now, therefore, be it Resolved, By recognizing October 11" as National Coming Out Day, the Governing Boardof the Los Angeles Unified School District support policies, practices and curriculum that honor and respectlesbian, gay, bisexual, transgender, and questioning staff, students and their families. 31. Ms. Garcia — Building a Stronger Community and Workforce by Increasing College Awareness at LAUSD For Action at the October 1, 2013 Regular Board Meeting Whereas, The Los Angeles Unified School District (District) is committed to providing every student with a quality education; Whereas, The District has a clear mission of ensuring that every child graduates from high school college-prepared andcareerready; Whereas, Attaining a college education serves as the gateway to better options and more opportunities; Whereas, In 1960, the State of California instituted the Master Plan for Higher Education with a promise that every qualified student wishing to pursue a college education would have access to one; Whereas, Since taking office, President Obama has madehistoric investments in college affordability, increasing the maximum Pell Grant award for working and middle class families, creating the American Opportunity Tax Credit, and enacting effective student loan reforms eliminating bank subsidies and making college more affordable; Whereas,In August 2013, President Obamaoutlined his new plan to combatrising college costs and make college affordable which would measurecollege performancethrough a newratings system so students and families have the informationto select schools that provide the best value for futures ties to increased federal student aid; Whereas, TheDistrict recognizes that the opportunity to attend college is indispensable in preparing ourstudents for successin life; and Whereas, The District resolved to create educational equity by implementing A-G coursesas a high school graduation requirement; now, therefore, be it Resolved, That the Governing Board of the Los Angeles Unified School District, hereby declares October as College Awareness Monthanddirects the Superintendent to encourageall district staff to promote a college-going culture, during the month of October and each and every day throughout the year. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 20 1 p.m., 09-10-13 EXHIBIT A - 31 32. Ms. Garcia — Answering the Call with a Parent Hotline For Action at the October 1, 2013 Regular Board Meeting Whereas, Communication between the Los Angeles Unified School District (LAUSD) and parents, community partners, and stakeholdersis essential to increasing graduation rates; Whereas, The current main telephoneline for the district, (213) 241-1000, is outdated, ineffective, and cumbersome; Whereas, The LAUSDis hometo thousandsof telephone numbersin its network of schools and offices; and Whereas, Students and parentsare outraged whentheir telephone calls pleading for help result in a maze of unresponsive telephonic transfers; now therefore beit Resolved, That the Governing Board of the Los Angeles Unified School District directs the Superintendent to create a LAUSD Hotline for maximumaccessfor parents and stakeholders with appropriate language support; andbeit finally Resolved, That the Board directs the Superintendent to report back in 45 dayson the development of implementation plan and identification of needed resources. 33. Ms. Garcia— DACA Anniversary Calls on LAUSD to Do More For Action at the October 1, 2013 Regular Board Meeting Whereas, The Los Angeles Unified SchoolDistrict has continuedto find ways to meet the needs of our students to ensure they get to graduation; Whereas, The District’s identity is defined by its promise of equality, respect for diversity and commitment to innovation; Whereas, Like education, citizenship is an important symbolof full membership and participation in society that should be encouraged,notbarred; Whereas, August 15, 2013, marked the one-year anniversary on which the Deferred Action for Childhood Arrivals (DACA)program began acceptingpetitions and provided an opportunity for certain young undocumented immigrants to remain in the country withoutfear of deportation, and allowed them to apply for work permits; Whereas, When DACAinitiated, the District respondedto the call with fast solutions to improve records systems, and support for current and formerstudents to obtain their school transcripts; Whereas, The District created a centralized process wherein applicants can request and receive studentrecords online or via mail free of charge within 24-48 hours; Whereas, As of January 2013 the District received more than 11,788 requests; Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 21 1 p.m., 09-10-13 EXHIBIT A - 32 Whereas, According to the National UnDACAmented Research Project (NURP), the USCIS has received 573,704 applications since the program was implemented and of those 430,236 have been approved; Whereas, The one-year anniversary of the program offers an opportunity to look back at DACA’s impact onthe lives of young people, as well as the impact on the thousands of undocumented people that continue to wait on the long debated immigration reform; Whereas, Partner organizations have held many DACAinformational workshops around the District’s boundary, educating hundredsof students and families that would qualify for the program; Whereas, The current immigration system is broken, antiquated, and neglects the hard work and financial contribution immigrants make to our country. It separates families and creates backlogs for families seeking reunification; Whereas, Since 2008, more than 1.6 million immigrants have been deported, and one in every 10 American children faces the threat of deportation of a parent; Whereas, Keeping families togetheris not only the right thing to do, butis also good for the economy because families provide a base of support that increases worker productivity and spurs entrepreneurship; Whereas, Immigration is a federal responsibility and a comprehensive approachto solve our broken immigration system would strengthen ourDistrict and the economyof our country and allows aspiring citizens to make an evengreater contribution to our communities; Whereas, Students should not be punished for their immigration status. Instead, they should be given recognition for their sacrifice, hard work, and determination; Whereas, A comprehensive, as well as compassionate, approach to solve our broken immigration system should be one that works for all communities and families in America; and Whereas, A just immigration reform mustensurethatit reflects one of our basic values—that we all are created equal—thus immigration reform must recognize each immigrant’s full humanity; now, therefore, beit Resolved, That the Governing Board of the City of Los Angeles urges the President and the Congress of the United States to take an immediate humaneand just approach to solving our nation’s broken immigration system and ending family separation through deportation; Resolved further, That the Board directs the Superintendentand staff to work in partnership with our DACAleaders to make available our elementary schools and host informational workshops to increase the numberof students and families that would benefit from this program and asks the Los Angeles County Office of Education to do the same;and beit finally Resolved, That the Board instructs the Superintendent and the Office of Legislative Affairs to forward this resolution to the Speaker of the House of Representatives, the Democratic Leader of Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 22 1 p.m., 09-10-13 EXHIBIT A - 33 the House of Representatives, the Senate Majority Leader, the Senate Minority Leader, members of the California Congressional Delegation. Announcements Selection of Board MemberRepresentative to California School Boards Association ~ Region 21 Director Ms. LaMotte Public Comment Adjournment Bd.of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 23 1 p.m., 09-10-13 EXHIBIT A - 34 AMENDED BOARD MEETINGS SCHEDULE Fiscal Year 2013-2014 Date | Meeting Time September 2013 Schedule Adopted 8/20/13 September 17,2013 Special Board Meeting 12 p.m. September 25, 2013 CCTP Ad Hoc 10 a.m. October 1, 2013 Regular 1 p.m October8, 2013 BFA Committee 10 a.m. October 15, 2013 Regular (Closed Session) 10 a.m. October 15, 2013 Committee of the Whole 1:30 p.m October 22, 2013 CIA Committee 1 p.m October 29, 2013 Board Retreat TBD November 5, 2013 BFA Committee 10 a.m. November5, 2013 CIA Committee 1 pm November12, 2013 Regular 1 p.m. November19, 2013 Regular (Closed Session) 10 a.m. November 19,2013 Committee of the Whole 1:30 p.m. December3, 2013 BFA Committee 10 a.m. December3, 2013 CIA Committee 1 p.m. December 10,2013 Regular 1 p.m. December 17,2013 Regular (Closed Session) 10 a.m. December 17,2013 Committee of the Whole 1:30 p.m. January 7, 2014 BFA Committee 10 a.m. January 14, 2014 Regular 1 p.m. January 21,2014 Regular (Closed Session) 10 a.m. January 21,2014 Committee of the Whole 1:30 p.m. January 28, 2014 CIA Committee 1 p.m. February 4, 2014 BFA Committee 10 a.m. February 11, 2014 Regular 1 p.m. February 18, 2014 Regular (Closed Session) 10 a.m. February 18, 2014 Committee of the Whole 1:30 p.m. February 25, 2014 CIA Committee 1 p.m. March 4, 2014 Regular 1 p.m. March 18, 2014 Regular (Closed Session) 10 a.m. March 18, 2014 Committee of the Whole 1:30 p.m. March 25, 2014 BFA Committee 10 a.m. March 25, 2014 CIA Committee 1 p.m. April 1, 2014 BFA Committee 10 a.m. Apmil 8, 2014 Regular 1 p.m. April 22, 2014 Regular (Closed Session) 10 a.m. April 22, 2014 Committee of the Whole 1:30 p.m. April 29, 2014 CIA Committee 1 p.m. May6, 2014 BFA Committee 10 a.m. Bd. of Ed. Regular Meeting 9/10/13 Mtg Version 24 Stamped Order of Business 1 p.m., 09-10-13 EXHIBIT A - 35 Date Meeting Time May6, 2014 CIA Committee 1 p.m. May 13, 2014 Regular 1 p.m. May 20, 2014 Regular (Closed Session) 10 a.m. May20, 2014 Committee of the Whole 1:30 p.m. June 10, 2014 Regular 1 p.m. June 17, 2014 Regular (Closed Session) 10 a.m. June 17, 2014 Committee of the Whole 1:30 p.m. June 24, 2014 BFA Committee 10 a.m. June 24, 2014 CIA Committee 1 p.m. July 1, 2014 AnnualBoard Meeting 10 a.m. Please note that the Board of Education mayconsider at this meeting any item referred from a Board Meetingfive calendar days prior to this meeting (Education Code 54954.2(b)(3)). The Board of Education mayalso refer any item on this Order of Business for the consideration of a committee or meeting of the Board of Education, which meets on the Thursday immediately after this meeting. Requests for disability related modifications or accommodations shall be made 24 hours prior to the meeting to the Board Secretariatin person or by calling (213) 241-7002. Individuals wishing to speak at a Board meeting mustsign up at the meeting. There will be no sign ups in advance ofthe meeting. Speakers must sign up prior to the item being acted upon by the Board. Speakers should planto arrive early as items with no speakers may be acted on at the beginning of the meeting. If you or your organization is seeking to influence an agreement,policy, site selection or any other LAUSDdecision, registration may be required under the District's Lobbying Disclosure Code. Please visit www.lausd.net/ethics to determine if you need to register or call (213) 241-3330. Materials related to an item on this Order of Business distributed to the Board of Education are available for public inspection at the Security Desk on thefirst floor of the Administrative Headquarters, and at: http://laschoolboard.org/09-10-13RegBd Itemscirculated after the initial distribution of materials are available for inspection at the Security Desk. Bd. of Ed. Regular Meeting Stamped Order of Business 9/10/13 Mtg Version 25 1 p.m., 09-10-13 EXHIBIT A - 36 ‘ational Charter Schools Presidential Proclamation ~ Week, 2012 > BRECLAWAION espe pence inkesrag wn rep mse scetn9 elle e'seulerds he me BA egteharta sven ghtnon. oryear, chaste sekageweate ot “eucang an urs ard uggt urngNthCaran woe inwasien mnrentereege see roxy. Tred etawipethsosoeltnen tesa neds and asp ealmeds eee sade! men ereeyled ty sia armitely 2d ng snccosingcar seta ron eroalee het Insconeee cow atge xa et was nets gon atig ulpay eee arnapa Oteeruy eere ceneaaareal, aetea erorarat het«sense aun Sale,anus, oars parts ard ace Wor gene Th atk alas eoorml arauipsle dither rece aegNaty edieoa ened er eee isa Popa deveopIe oars eri oan eeoeoNae Ney, THEREFORE | BARACK ORD, Heston FeUGGae of fits Lyionhoy 212 stats eerSonoWonk, |onmTena oF Valsetesens aries Snare, ‘tevcaye,hs dapder oft tsSltanneandaiy aes SOO eg ctyee REFORM, 4 ey Weeki Adve: Avert »Guncenment Shutdiscnaod Expandig seco to Aortalsltieare ‘Selly Weap Cp: "No oe saw broke “er haranar ny tik is cineYor Stoning, ae8 Precident QaAsnuannees e Diplo Corsham Repustical van Fresdest cas soa Pet Retafret sore arb plow wserdngengmng eat "ceo snags erea EXHIBITB - 37 WWWWHITEHOUSE. GOV En espafiol | Accessibility |Copyright Information [Privacy Policy {Contact USA.gov | Developers | Apply for a Job EXHIBIT B - 38 EXHIBIT C - 39 LOS ANGELES UNIFIED SCHOOL DISTRICT SUPERINTENDENT'S 2013-14 FINAL BUDGET BOARD OF EDUCATION Monica Garcia, President TamarGalatzan Nury Martinez Bennett Kayser Richard Viadovic Marguerite Poindexter LaMotte Steve Zimmer John E. Deasy Superintendent of Schools MeganReilly Matt Hill Chief Financial Officer Chief Strategy Officer Tony Atienza Director, Budget Services and Financial Planning Prepared by Budget Services and Financial PlanningDivision Budget Services Branch June 18, 2013 EXHIBIT C - 40 MEMBERS OF THE BOARD LOS ANGELES UNIFIED SCHOOL DISTRICT MONICA GARCIA, PRESIDENT Administrative Office TAMAR GALATZAN 333 South Beaudry Avenue, 24" Floor BENNETT KAYSER Los Angeles, California 90017 MARGUERITE POINDEXTER LAMOTTE Telephone: (213) 241-7000 NURY MARTINEZ Fax: (213) 241-8442 RICHARD A. VLADOVIC,Ed.D. STEVEN ZIMMER JOHN E. DEASY, Ph.D. SUPERINTENDENT OF SCHOOLS To LAUSD’s Community of Stakeholders: I wouldlike to thank you for your continuing support of LAUSD andthe work we do every day to ensure all of our students are college and career-ready. Proposition 30 passed in November, preventing new trigger cuts to public education, and we thank you for your support. The passage of Prop 30 meantthat for thefirst time in years, the District could workto stabilize staffing and fundingto continuecritical programs. Further, the economy beganto improve,andwithit, the state’s IOU’s to education have begun to decrease, Seeing a trend in the recovery, weutilized the Reserve for Revenue Uncertainty and available new funds through the State’s Local Control Funding Formulato restore the full academic year to 180 days and we rescinded furlough days for every employee. This action restores the full academic year, increases instructional timeto the state standard, and honors the sacrifices our employees have made over thelast five years. The results from the 2011-12 schoolyear are clear: - Ourfour year cohort graduation rate went up to 65 percent, five percentage points higher than our target. - LAUSD improved proficiencyrates at a faster rate than therest of the state by onepercent in both English Language Arts and Mathematics. - Almost 2/3 of our students are in class at least 96 percent ofthe time - 32% ofour parents are actively providing us feedback by completing the School Experience Survey, a seven percent increase over the participation in 2010-2011. - Wenearly halved the numberofdays students were out of school due to suspension, from 44,000 days lost in 2010-2011 to 26,000 dayslost in 2011-2012. Our workis not done though. The Local Control Funding Formula (LCFF) offers great promise for LAUSD’s students, providing supplemental funding directed to our students with the highest needs, those who are English Language Learners, who are Free and Reduced Price Mealseligible, and our foster youth. In 2013-14, with May Revision funding of $1.84 billion, funded Cost of Living Adjustments (COLAs)and the LCFF provide $266.5 million. This is an increase to the Second Interim revenue projection of $243.4 million, which included $62.5 million in COLA and $180.9 million from LCFF based on the Governor’s J;anuary Proposed Budget funding of $1.6 billion. This increase in revenue, combined with the release of our Reserve for Revenue Uncertainty, enable us to maintain staffing and programs at 2012-13 levels. In 2014-15, accounting for estimated ending balances and estimated ongoing LCFF revenues,the projected deficit is $272.8 million. Additional on-going revenues or on-going expenditure reductions will be needed in order to balancethe District’s budget. We are hopeful the economycontinues to improve so that we can resolve our structural deficit and begin to reinvestin our schools. On behalfofall of the employees of the LAUSD welook forward to the upcoming school year, as we continue to work together to develop the leaders of tomorrow, and ensure every child is career and college-ready whenthey graduate from LAUSD. Cordially, ( Ir John E.sal Superintendent EXHIBIT C - 41 Board of Education Report No. 343-12/13 For June 18, 2013 Board Meeting INTER-OFFICE CORRESPONDENCE Los Angeles Unified School District INFORMATIVE TO: Members, Board of Education Date: June 12, 2013 John E. Deasy, Ph.D., Superintendent FROM: Megan K.Reilly, Chief Financial Officer mie Matt Hill, Chief Strategy Officer met SUBJECT: ADOPTION OF SUPERINTENDENT’S 2013-14 FINAL BUDGET On June 18, 2013 the Board will be asked to approve the 2013-14 Final Budget and a contingency plan for 2014-15. Passage of Proposition 30 has allowed the District to resolve its 2013-14 deficit Last September, LAUSDwasfacing a $450 million non-cumulative deficit for the upcoming 2013- 14 school year. ByFirst Interim (December), the deficit dropped to $204.6 million due to the passage of Proposition 30 and the State’s paymentagainst an IOU,allowingfor the release of the District’s Reserve for Revenue Uncertainty. This allowedthe restoration of 10 furlough days and provided students with a full school year (180 days). By SecondInterim (March), the District’s reliance on the Governor’s proposed Local Control Funding Formula (LCFF) provided fundingto stabilize the workforce and created -- for thefirst time in five years -- a balanced budget with no projected deficit in the upcomingfiscal year. The District has Invested in Program Stability The 2013-14 Final Budgetreflects the retention of many general fund programs while maintaining staffing levels, class sizes, and administrator, counselor, nurse and clerical normsat 2012-13 levels. The District also continuesto invest in Adult Education, Early Childhood Education, and School Readiness Language Development programsas well as continuing investmentin Magnetprograms and schools. Throughthe use of one-time resources such as the Reserve for Revenue Uncertainty, and the use of projected new revenues from the LCFF,the District was able to achieve program stability. In addition, Third Interim projections indicate a higher 2012-13 endingbalance, reflecting higher federal reimbursements for Medi-Cal Administrative Activities (MAA), the capture of operating efficiencies in the Cafeteria Program, and other program savings. (See attachment A for a summary ofthe Third Interim Financial Report.) The table below shows howtheinitial projected deficit of $449.6 million has been addressed: EXHIBIT C - 42 The table below showshow theinitial projected deficit of $449.6 million has been addressed: Amount Reconciliation of the Original 2013-14 $450 million Operating Deficit | (Smillions) Estimated Non-cumulative Deficit for 2013-14 $ (449.6) Release of Reserve for Revenue Uncertainty $ 202.0 Changes in COLA Estimates and Proposed LCFF 266.2 Changesin expenditure/revenue estimates for 2013-14 (1thru 37 Interim) 14.8 Reserve for Sequestration (32.5) Beginning Balance from 2012-13 (See Attachment A) 45.8 Final Budget Estimated Ending Balance for 2013-14 $ 46.7 The Board Must Submit a Fiscal Plan for 2014-15 The District must now shift from short-term stabilization to long-term financial and program sustainability. Currently projected out-year deficits are shown in the table below: Non-cumulative Deficit {in millions) | 2012-13 2013-14 201015 2015-16 Total Deficit With LCFF $ 45.8/$ 0.9/$ (319.5)[$ _(531.2)/$ (804.0) Cumulative Deficit with LCFF $ 46.7|$ (272.8)|$ (3040) TheDistrict will continue to be challenged to find sustainable additional sources of revenue or alternative solutions, to stop the cycle of on-going deficits. The 2014-15 fiscal year continues to reflect a $272.8 million deficit -- even after the inclusion of on-going LCFF revenueand use of projected 2013-14 unassigned ending balances. Factors contributingto this deficit are the expiration of one-timerevenuesolutions,that supported on-going expenditures, continuing enrollment decline (without concurrent reductions in costs), and increases in some estimated expenditures(i.e. utility costs, health and welfare benefits, etc.). In light of the out-year deficit, the Los Angeles County of Education (LACOE) has requested that the District submit, with the 2013-14 Adopted Budget, a Board-approved fiscal plan that restores and maintainsreservesat statutorily requiredlevels. This fiscal plan will also help protect the District’s credit ratings, ensuring on-going accessto markets, and safeguards the District’s ability to borrow at the lowest rates possible when required to cover cash shortfalls and maintain liquidity. While a balanced budget plan demonstrates the ability to meetsalary andother operatingpriorities for the upcomingyear,it also provides reassurance to financial markets that the District’s use of one-time funds, and the draw-down ofthe Reservefor Revenue Uncertainty, are temporary strategies that provide a bridgeto years of higher revenue and a recovering economy. Further, a review and strengthening of the debt policy will be an important reinforcementto this commitment The table below showstwo alternatives for addressing the out year deficit. It is important to note that under both scenarios, the 2013-14 ending balanceis usedto partially mitigate the 2014-15 deficit that must be addressed: EXHIBIT C - 43 Los Angetes Unified School Distriet’s 2014-18 LACOE Required Contingency Plan Projected Deficit Balances from 2013- ia Sequester is reversed (two ycar impact) Potential Additional New Revenues FiscalStabilization Plan TBD ‘Thereis Still Great Uncertainty Regarding the State Budget and Qut-Years ‘Thelegislatureis scheduledto submit the 2013-14 State Budget by June 15, 2013, which should include the LCFF formula. The District has already relied upon increased LCFF fundingin its 2013-14 Final Budget. Consequently, the Districthas very little flexibility to address any fimding reductions or restrictions that may result as LCFFis fully implemented. Budget Services & Financial Planning, the Office of the Chief Financial Officer and the Office of Legislative Affairs will continue to provide updatesto the Board asinformation becomesavailable. TheDistrict must continue to bediligent in protecting andadvocating for increased revenues. It isimperative to protectthe proposed LCFformula while maintaining as muchflexibility as possible.Any changesin the LCFF,either through changes in the formula or in proposed flexibility, may impact the District's out-year revenue projections and will have a rangeof program implications. ‘Over the mid- and long-term, the District must also identify new orincreased sources of on-going revenues in order to maintain current program levels. In addition, declining enrollment will continae to placepressure on the District's existing fixed cost stracture. The Disttict must balancethese issues in order to ensure access to necessary cash markets, allowing the District to meet its eash flow needs while not paying excessive or usurious feesto operate programs. Ifyou have any questions, please contact me at extension 1-7888. Enclosure ce: Michelle King Jefferson Crain David Holmquist Jaime Aquino Enrique Boull’t Jefferson Crein Tony Atienza EXHIBIT C - 44 ATTACHMENT A THIRD INTERIM SUMMARY Overall changes in projections from SecondInterim to Third Interim in Revenues, Expenditures, Net Contributions/Transfers and Ending Balances for 2012-13 resulted in an increase in ending balance of $67.3 million. Below is a brief summary. ¢ Increase in Revenues. The Third Interim showsa netincreasein total General Fund — Unrestricted revenueof $5.3 million or 0.18% variance from the SecondInterim. Theincrease is due to higher federal revenues for Medi-Cal Administrative Activities (Medi-Cal Admin) of $7.9 million based on clarification from theState that federal programs revenuewill continue. This is partially offset by a slight decrease in K-3 Class Size Reduction Revenue of$2.2 million based on actual over estimated revenue. ¢ Decrease in Expenditures. The Third Interim showsa net decreasein total General Fund — Unrestricted expenditures of $8.3 million or 0.24% variance from the Second Interim. The decreaseis primarily due to reduced spending for teacher substitutes and supervision aides. Thecost savingsis partly attributable to a changein policy giving schools additional control andfiscal accountability. ¢ Favorable Decrease in Net Contributions/Transfers/Indirect Cost. The Third Interim showsan overall favorable decrease in total General Fund — Unrestricted Net Contributions/Transfer/Indirect Costs of $53.8 million or 5.90% variance compared to the SecondInterim. Cafeteria operations continue to demonstrate favorable results, capturing efficiencies resulting in a $8.1 million decrease in required support. The Early Childhood Educational (ECE) Program also required less General Fund support as a result of a temporary staffing change, allowing the capture of $8.1 million in program savings without impacting service delivery. Contributions/support to restricted programs such as Special Education, Medi-CalBiiling Option and Coordinated Early Intervening Services (CEIS)also decreased a total of $25.5 million. The decrease in contribution to Special Education is mainly attributable to lower-than- anticipated spending for Non-Public Services and Educationally Related Mental Health Services. In addition, Special Education Assistants overtime expenditures decreased. The lower contribution level to CEIS is mainly a result of unspent funds being carried forwardinto the program in the next fiscal year. © Increase in Ending Balance. — The net effect ofthe above changesis that projectedtotal ending fund balance,as of the Third Interim, has been increased by $67.3 million. It should be noted however, that this change in ending fund balanceis comprised ofan increasein assigned ending balance of $22.3 million, whichis restricted in use for specific purposes, and a one-timeincrease in unassigned ending balance of $45 million. EXHIBIT C - 45 TABLE OF CONTENTS Page I. Introduction and Summary A. Introduction Board RpOrt .........csscsscscssssesssessescosssesessssessesecsssussscay sossesussveusstesusavesuassseseserssesareaeereeseeseeen 1 How Education is Funded in California - Summary ..........cssssccccssscscsssssssssssssssssssssssesasssssssasasseuesssee 15 Breaking Down LAUSD's Budget ...........-scsccsscsssssssessssssssssssssesssssssscsnsssesmsatsessesescassesesce ves 7 Budgeted Expenditures Detail by Major Group ..........00.cccccscecsescessecersseccscscosscs ssssssesasssssessessessesss 23 District and Community Profite.............cssscssccsssesssssssussssscassesssussssseusasssssasesessensussssesnenasssseciasssssunse 35 Significant Policy Affecting District's Budget Budget and Finance Policy - Summary.............ccccccccccccccssssssssssvsssssesssucscsessessevessesteverseseecececes . 37 Debt ManagementInformation - SuMMary..............0.cccccsccscssccessecssesssescccssssessveseusesenseceee cesses, . 39 B. Summary Budget and Fund Highlights ; Description of “Funds” Utilized by the District ...............ccccscsssssssssscscsscescssssssssessassassssstssssnsssassiscesssesessssssss 43 Unconsolidated Summary of Sources and Uses by Typeof Fund. sessseeeeeseensescneceeees 47 Unconsolidated Summary of Revenues by Fund .........0....cccccccccccscsesss ccssssossssssssssssececs setens 48 Unconsolidated Summary of Expenditures by FUN ......cssscscssscsssscccssssscsscssessssssssssstsssssssanssssssssssssssessesse., 49 General Fund-Unrestricted & Restricted Program REVEnUeS ..0.......cccscsscsscsssssecssssessessssssossssssssessecceoee 51 General Fund-Unrestricted & Restricted Program-Estimated Expenditure by Object «00.0...eee 57 General Fund Unrestricted & Restricted Multi-Year Projection... be 61 i Financial Details IMMFODUCHION .........-ssseessseesssecsessecsessssessuessecensnsssnees sesssessssssesseysusssussussares eessusssssussssspssusacsaresssecs tase seseeee 65 Revenues and Expenditures by Fund Operating Funds General Fund - Unrestricted & Restricted Programs............0..c..ccccscscsssssssessecesevscsseseseeceseeseesecccescesece 67 General Fund - Unrestricted Program .............cccccecccsssssscssesctsseerecesesesscssesssvevssssteseeceesesecesees ve 68 General Fund - Restricted Program .............:.cccecscscssssusscsecssesssvessesesssestessessassssssseseipeeseees seseeseseeece 69 General Fund - Unrestricted & Restricted - Expenditures by Sub-Object Unrestricted & Restricted Program ..............sescccecsscsessssssssessssscsecersucstssnecsavcevecus seetestee ceeeessessssse 70 Unrestricted Program 0.2... sccscsssessscecsessesesssvsnscscesssvsvavanssaney sesecsceveseveveee suse vn 72 Restricted Program ...........ccccscsssecsecesee cesses ssesseescecssesussuasseussessans cesetaseasessavssssssisettiueeeeeescesseesscce 74 Total General Fund — Restricted SOUrCES ..............ccscecseeecsssessvecnsesseesies eatesesesesteevessestuseevenseseeseees os 76 General Fund — Restricted Program - Special Education Program ..........c-csccscccsscccesecsesesseoceeescecccese 77 Adult Education Fund ~ Unrestricted Program ..........0...ccccccccccsecccecesceseceseseseeoe cas 79 Adult Education Fund - Restricted Program .............c:sccssccssccsesssssessssessssurssece sserssssssussasesesleeeusssseseseeee, 80 Child Development Fund - Unrestricted Program..............c.sccsccssccssesessecscesecssee sesecsstavessseteeeeeseeees cee 81 Child Development Fund - Restricted Program ...........c.cccccccccccsssssssstsesseesssecscasesucescstessvee sess sseseeesecsee 82 Cafeteria Fun oo... ete ceseeecsssesecssensccsesserssssnsseusavaveaseceasavenessussvscssesssustcess seetseseeesseee, ven 83 Deferred Maintenance Fund o.oo... csescecssscssscseessssscssescesscssnsssusesuss cesses sacesessoussessssssassnvesssseees 84 Capital Funds Building Fund-Measure R oo... csecessescseseesessecsessccssecessesssscssessseasaremssestessusissvestusseseeeseeeseesss 85 Building Fund — Proposition BB oo... ..sessseeseccosssessessseescessessseccssessavearsssesssasssesscessumuutieiseeesssce 86 Building FUNG...seececss ccs seesessessnssonsessonsassnsssessssssesssessressssssvasseusessrssavssesaeaissersatasssenesecess cesses 87 Building Fund-Measure Koo...sessescsssesscesessessnesssescessusessssssavsusststssussusesavstessseseessesesees cesses 88 Building Fund-Measure Yoo...esccesssseesueessssssssscsssssesssesssvesssvasuntasesansusessssutvecsessteevecceseesss 89 County SchoolFacilities FUNG 0...eeesscecsssscssssscesscsves csusssvessessassuvssucssesvussessesesaberestssseessssecsee 90 Special Reserve FUN-CRA oo...occ ceccessessesseesecssessesstsserssssesearsumsteassessissieatveseresesnec. 91 Special Reserve FUNG0... ceeseeccssessssssscarsssesrsesverssvssenssessivsissvararivssverseteescateesseseeesec.. . 92 Special Reserve Fund-FEMA-Earthquake .............scssssesccssesseccesessssesnesssessesearssecsevarccassesesssessesecsess 93 Special Reserve Fund-FEMA-Hazard Mitigation ..........cccscesscsssssssssecsssssssessssesssesssstesstesseesseesesseececcs 94 Capital Facilities Account FUN............csscsessecescsssencssseesssssssessssusssssavscsssssasstastesssuectsseveseereserseeesees 95 State School Building Lease/Purchase Fund ............cccsssssessssssssssssssesessessessssessssessssestecsseeeeeeceecccssce, 96 EXHIBIT C - 46 Debt Service Funds Bond Interest & Redemption Fund ..........2.sssssesssssesssessesssessssessssevsssnecsusssssvs seserssesesssurecsceseccessseeee 97 Tax Override FUNG .......scessescsssscsscessssssensvessessuessssssssssssssvesssussssisasevassassessssstsessesieeescesse. — 98 Capital Services Fund .........cccsscssscsssesnsessuessecesssssssesssissvssssesssssssssasstessssstsasssisetsipsetecssccccc, 99 intemal Service Funds Health & Welfare Benefits FUAG o.oo... .ssescsesecsssssscassesssesssssossrvessussustssessecavessassusssssvesecsseeseseeceee 100 Workers’ Compensation Self Insurance FUN ...........6..0.ssssssssessesscecsssesessssssessssrestee sesseecesss . 101 Liability Self-Insurance FUN..............sscssecssesssessesssesscessessnsessenvessususstsssssstectisstsessssivesesseeseecoss ca 102 Appendices IMMtFOGUCHION «ss sesseecsssssssessccssseessseesosseecesessnsssesssnensansussssssussessavesssttessstesstsassivesssrssasecesseccerecceseec ce. 103 Appendix A Frequently Asked Question S .........s-ssssssssssssssussssssstusennsttranitasiisnastnssstustesastieeteeeecc.., 105 Appendix B Budget Principles and Procosses.............ccsssccscsesecsessssssssessesssessssesesessecteeevesceeecec veesseee V1 Appendix C How Education is Funded in CalifOTiaeeceeetecetsescceeceessssssesssssnsenneessstncee 41145 Appendix D =— Average Daily Attendance ..............scsessecsseessesssseessssesssssersssssecsessstusessstisestessesceceeeeesn . 119 Numberof Schools and Centers ...........ccccccccsssssseesssssssssussssssssssecssesesssss seasteseveeseeeees se. 124 Appendix E Revenue Limit information,..............ssssscsesscecscsssssssssssssessssssssesssssessssessssvesessesessveeeeecee, 127 Appendix F Revenues and Uses ofTierIli Categorical Program Funds .............c.c:cccecccesssesssssesscsteeceesecccee 131 Appendix G School Staff and RESOUrCES ...0.......ccccccscscessssesecstesstecares sossesssustessesstsaeesseeesece., 135 Appendix H District Enrollment Trends .............cssccssssssccossssssssssvesssseeesseesssecatssevasisitets stesso, 146 Appendix! Budget and Finance Policy..........escesesscsssssesssssssesssssssssvse ssmessuseastesttasssssvecseseeseesec 149 Appendix J District Debt Management Policy............-sccssccssscssssscssscssessssssessssseessesssessisisestesseee cose 163 Appendix K Capital Budget..............ssssssssscsstsessessseessecsusssssssssssseessttanssssusstesssetasicestueeseecesse 197 Appendix L NOLES on... sescesescsssssssecsseeessesesssseessnssssnsasssecesssssnessuissivesastasssttststativestiitssiitteseec, 199 Appendix M Glossary of Budget Terms and Abbreviations ......0...........ccccssssesseseccsssesesesescssvesssseeeec, 203 EXHIBIT C - 47 LOS ANGELES UNIFIED SCHOOL DISTRICT a Board of Education Report Report Number: 343-12/13 Date: June 18, 2013 Subject: Adoption ofthe Superintendent’s 2013-14 Final Budget and Approval of Education Protection Account Resolutions for 2012-13 and 2013-14 Responsible Staff: Name Tony Atienza Office/Division BudgetServices and Financial Planning Division Telephone No. 213-241-2100 BOARD REPORT Action Proposed: Background: Bd. of Ed Rpt No. 343-12/13 Staff seeks authorization for the followingactions: (1) Adoption of the Superintendent’s 2013-14 Final Budget to be filed, as adopted, with the County Superintendent of Schools on State Form SACS-2013 in the mannerprescribed by law. (2) Delegation ofauthority to the Budget Services and Financial Planning Division and the Accounting and Disbursements Division to take actions necessary to implementthe provisions of this Board Report and the Budget Assumptionsand Policies set forth in this Board Report (AttachmentA). (3) Approve the enclosed Resolutions Regarding Expenditures from the Educational Protection Account (“EPA”) for Fiscal Year 2012- 2013 and Fiscal 2013-2014 as required under Proposition 30 (Attachment B). Funds from the EPA havenot norwill not be used for administrator salaries or benefits or for any other administrative costs. The Board of Education annually musthold a public hearing and adopt a fina] budgetconsistent with the provisions of section 42127 of the Education Code. Upon adoption, the final budgetis to be submitted to the Los Angeles County Office of Education (LACOE)onorbefore July 1. With the passage of Proposition 30,the District will receive part ofits State revenue limit entitlement through paymentto the Education Protection Account (EPA). In order to receive these entitlements, the Page 1 of 3 Board ofEducation 1 6/18/2013 EXHIBIT C - 48 LOS ANGELES UNIFIED SCHOOL DISTRICT Expected Outcomes: Board Options and Consequences: Policy Implications: Budget Impact: Issues and Analysis: Attachments: 0) Informative O Desegregation Impact Statement Bd. ofEd Rpt No. 343-12/13 Board of Education Report Board of Education must at open meeting make spending determinations regarding EPA funds. EPA funds maynotbe usedfor anysalaries or benefits of administrators or any other administrative costs. The District is also required to annually publish on its Internet Website an accounting of how much EPAfunds were received and how the funds were spent. The outcomeofthis Board action is an adopted budgetfor the 2013-14 fiscal year that will enable the district to comply with Education Code Section 42127. A further expected outcomeofthis Board Action is a adoption of Resolutions Regarding EPA expenditures for the 2012-13 and 2013-14 fiscal years. The District will meet the annual budget adoption requirements of Education Code Section 42127 should the Board vote to approve. Should the Board not vote to approve, the District will not meet the requirements of Education Code Section 42127. Non-approvalofEPA resolution as set forth in Proposition 30 may place the EPA entitlementat risk. Adoptionofa Final Budget for 2013-14. Page 2 of 3 Board of Education 6/18/2013 2 EXHIBIT C - 49 LOS ANGELES UNIFIED SCHOOL DISTRICT Board of Education Report Respectfully submitted, APPROVEDBY: E. DEASY,PH.D. CHELLE KING Superintendent of Schools Senior Deputy Superintendent School Operations APPROVED & REVIEWEDBY: PRESENTEDBY: f anny DAVID HOLMQUIST ME Y General Counsel Chief Financial Officer §Approvedasto form. f TONY ATIENZA Director of Budget Services and Financial Planning 44 Approved as to budget impact statement. Chief Strategy Officer Page 3 of 3 Board of EducationBd. of Ed Rpt No. 343-12/13 6/18/2013 EXHIBIT C - 50 ATTACHMENT A Bd. Of Ed Rpt No. 343/12-13 BUDGET ASSUMPTIONS AND POLICIES The Superintendent’s 2013-14 Final Budgetreflects the following: 2013-14 Fiscal Year: 1. 1.565% ofCOLA and 18.997% deficit rate on the Base Revenue Limit, or a net effective COLA of5.85%. (Based on School ServicesofCalifornia May’s Dartboard) 2. 1.565% COLAfor Tier III categorical programs. (Based on School Services of California May’s Dartboard) 3. Increase in revenue of $53 million due to the difference between the existing revenuelimit and Tier II formulas and Local Control Funding Formula (LCFF) revenueas proposed in the May Revision with $1.84 billion put into LCFF. 4. The above assumptionsresult to total revenue increase from COLA and LCFF of $266 million. This is an increase from 2™Interim revenue from COLA and LCFFof$243.4 million ($180.9 million in LCFF and $62.5 million in COLA). 5. The budget revenue doesnotreflect any of the LCFF compromise released in June. 6. Education Protection Account (EPA) portion of the revenue limit of $518.2 million to be spent for instruction. 7. Revenue Limit ADA of 522,648. 8. 1.565% COLA onthe State-funded portion of Special Education’s AB 602 funding; "included in 2013-14 SB87 funding is $36 million and $7 million from state and federal funds, respectively. ; 9. 1.565% COLAfor TierI, and II categorical programs 10. A net enrollment decline of 17,977 from 2012-13 for non-charter and affiliated charter schools enrollment. Independent Charter school enrollmentis estimated to increase by approximately 9,749. 11. A California ConsumerPrice Index (CPI) of2.2% on other operating expenditures, except utilities which wasprojected to increase by 7% 12. Funding for employee health and medical benefits at the per participantrate pursuant to the 2012-2014 Health and Welfare agreement 13. Funding for Other Postemployment Benefit Plans (OPEB) contribution of $50.6 million for 2013-14 and $81 million ofprior year funds designated for OPEB. Bd.ofEd. No. 343-12/13 -1- June 18, 2013 EXHIBIT C - 51 ATTACHMENT A Bd. Of Ed Rpt No. 343/12-13 14. Ongoing and major maintenanceresourcestotaling $99.5 million, reflecting approximately 1.6% ofbudgeted General Fund expenditures. 15. Release of the 2012-13 reserve for revenue uncertainty of $202 million. 16. A Reserve for Economic Uncertainties totaling $65.4 million, reflecting the statutory 1% of the budgeted expenditure requirementfor districts over 400,000 ADA 17. A Reserve for Sequester impactof $32 million reflecting estimated decrease in District federal revenue should the sequester languageis not reversed. 18. Inclusion of 2013-14 beginning balancesin the general fund and other funds,reflecting estimated ending balanceas ofJune 30, 2013 based on the District’s Third Period Interim Financial Report. 19. Estimated 2013-14 ending balances for the general fund and otherdistrict funds, reflecting the difference between anticipated 2012-13 revenue and expenditure levels 20. Inclusion of 2013-14 bond measure funds, debt service, COPS proceed andother interfund transfers expenditures. 21. Transfer of $15.2 million from the Special Reserve Fund to General fund for debt service repaymentofcapital projects. 22. Contribution of $101.9 million to the Worker’s Compensation fund. Inclusionof total Workers’ Compensation actuarially determined funded liability of $399.7 million. 23. Authonity to transfer amounts, as necessary, to implementtechnical adjustments related to the 2013-14 budget. 24. Authority to implement new 2013-14 revenues andincrease budgeted appropriations from them. 25. Use ofTier II categorical program funds as approved by the Boardin the public hearing on May14, 2013. 26. Carryover of General Fund School Program (program 3027) to individual schoolsites. 27. Commitment to continue the use of adult education fund andtransfer the funds to maintain 2012-13 funding levels. Funds committed are to be used for adult education program. Final amounts to be transferred will be determined during the year end closing process of each fiscal year. Bd. of Ed. No. 343-12/13 -2- June 18, 2013 EXHIBIT C - 52 ATTACHMENT A Bd. Of Ed Rpt No. 343/12-13 2014-15 and 2015-16 Fiscal Years: 1, 10. 11. For 2014-15, a statutory COLA of 1.8% with a deficit rate of 18.997% for an effective COLAof 1.8% For 2015-16, a statutory COLA of 2.2% with a deficit rate of 18.997% for a net funded COLA of 2.2% 1.8% and 2.2% COLAonthe State portion of Special Education’s AB602 funding for 2014-15 and 2015-16, respectively. Increase in revenue of $90.3 million in 2014-15 and $105.2 million 2015-16 dueto the difference betweenthe existing revenuelimit and TierIII formula and Local Control Funding Formula (LCFF) revenueasproposed in the MayRevision with $1.84 billion put into LCFF. 1.8% and 2.2% COLAfor categorical programs for 2014-15 and 2015-16,respectively. Projected Revenue Limit ADA of 503,530 and 486,327 for fiscal years 2014-15 and 2015-16, respectively For 2014-15, an enrollmentdecline of 18,192 for non-charter and affiliated charter schools while independentcharter schoo! enrollmentis estimated to increase by 9,569. For 2015- 16, an enrollment decline of 18,940 for non-charter and affiliated charter schools while charter school enrollmentis estimated to increase by 9,573. CPI of 2.3% in 2014-15 and 2.5% in 2015-16 on other operating expenditures, except utilities which were projected to increase by 7% for each fiscal year Increase of 1% in State Teachers' Retirement System (STRS) rates for 2014-15 and 2015- 16 from 8.25% to 9.25%. Increase of 1.6% in California Public Employees’ Retirement System (CalPERS)rate for 2015-16. This brings the 2015-16 levels up to the current statue’s maximum contribution of 13.02%. Funding for employee health and medicalbenefits at the per participant rate pursuantto the 2012-2014 Health and Welfare agreement. Funding for 2015 and 2016 at the 2014 per participantlevel. Funding for OPEB contribution of $75.9 million for 2014-15 and $113.9 million for 2015- 16, Further balancing adjustments for 2014-15 and 2015-16 of $319.6 million and $531.4 million, respectively, for a cumulative two-year deficit of $804.4 million with the inclusion of 2013-14 beginning balancesin the general fund of $46.7 million. Bd. of Ed. No. 343-12/13 -3- June 18, 2013 EXHIBIT C - 53 Attachment B Bd. Of Ed Rpt No. 343/12-13 RESOLUTION REGARDING EXPENDITURES FROM THE EDUCATION PROTECTIONACCOUNTFORFISCAL YEAR 2012-13 WHEREAS,the voters approved Proposition 30 on November6, 2012; WHEREAS,Proposition 30 added Article XIII, Section 36 to the California Constitution effective November 7, 2012; WHEREAS,theprovisions of: Article XIII, Section 36(e) create in the state General Fund an Education Protection Account to receive and disburse the revenues derived from the incrementalincreasesin taxes imposedbyArticle XIII, Section 36(f); WHEREAS,before June 30of each year, the Director of Finance shall estimate the total amount of additional revenues, less refunds that will be derived from the incremental increases in tax rates made pursuantto Article XIH, Section 36(f) that will be availablefor transfer into the Education Protection Account during the next fiscal year; WHEREAS,if the sum determined by the State Controller is positive, the State Controller shall transfer the amount calculated into the Education Protection Account within ten days preceding the endofthefiscal year; WHEREAS, all monies in the Education Protection _ Account are continuously appropriated for the support of schooldistricts, county offices of education, charter schools and community college districts; WHEREAS, monies deposited in the Education Protection Accountshall not be used to pay any costs incurred by the Legislature, the Govermor or any agencyofstate government; EXHIBIT C - 54 Attachment B Bd. Of Ed Rpt No. 343/12-13 WHEREAS,a community college district, county office of education, school district, or charter school shall have the sole authority to determine how the monies received from the Education Protection Accountare spentin the schoolor schools within its jurisdiction; WHEREAS,the governing board of the Los Angeles Unified School District (“District”) shall make the spending determinations with respect to monies received from the Education Protection Account in open session of a public meeting of the governing board; WHEREAS, the monies received from the Education Protection Account shall notbe usedforsalaries or benefits for administrators or any other administrative cost; WHEREAS,each community college district, county office of education, school district and charter school shal] annually publish on its Internet website an accounting of how much money was received from the Education Protection Account and how that money wasspent; WHEREAS, the annual independent financial and compliance audit required of community college districts, county offices of education, school districts and charter schools shall ascertain and verify whether the funds provided from the Education Protection Account have been properly disbursed and expended as required by Article XIII, Section 36 of the California Constitution; WHEREAS,expenses incurred by community college districts, county offices of education, school districts and charter schools to comply with the additional audit requirements of Article XIII, Section 36 may bepaid with funding from the Education Protection Act and shall not be considered administrative costs for purposes of Article XIU, Section 36. EXHIBIT C - 55 Attachment B Bd. Of Ed Rpt No. 343/12-13 NOW, THEREFORE,IT IS HEREBY RESOLVED: 1. The moniesreceived from the Education Protection Accountshall be spent as required by Article XIII, Section 36 and the spending determinations on how the moneywill be spentshall be made in open session of a public meeting of the governing board ofthe District; 2. In compliance with Article XIII, Section 36(e), with the California Constitution, the governing board of the District has determined to spend the monies received from the Education Protection Act as set forth in Attachment1. DATED , 2013. Board President Executive Officer of the Board EXHIBIT C - 56 Attachment B Bd. Of Ed Rpt No. 343/12-13 ATTACHMENT1 2012-13 Education Protection Account Budgeted Expenditures by Function - Detail Expenditures through: June 30, 2013 For Fund 01, Resource 1400 Education Protection Account TOTAL EXPENDITURES AND OTHERFINANCING USES Description Object Codes Amount AMOUNTAVAILABLE FOR THIS FISCAL YEAR Adjusted Beginning Fund Balance 9791-9795 0.00 RevenueLimit Sources 8010-8099 617,414,021.00 Federal Revenue 8100-8299 0.00 Other State Revenue 8300-8599 0.00 Other Local Revenue 8600-8799 0.00 All Other Financing Sources and Contributions 8900-8999 0.00 Deferred Revenue 9650 0.00 TOTAL AVAILABLE 617,414,021.00 EXPENDITURES AND OTHER FINANCING USES (Objects 1000-7999) Instruction 1000-1999 617,414,021.00 Instruction-Related Services Instructional Supervision and Administration 2100-2150 0.00 AU of a Multidistrict SELPA 2200 0.00 Instructional Library, Media, and Technology 2420 0.00 Otherinstructional Resources 2490-2495 0.00 School Administration 2700 0.00 Pupil Services Guidance and Counseling Services 3110 0.00 Psychological Services 3120 0.00 Attendance and Social Work Services 3130 0.00 Health Services 3140 0.00 Speech Pathology and Audiology Services 3150 0.00 Pupit Testing Services 3160 0.00 Pupil Transportation 3600 0.00 Food Services 3700 0.00 Other Pupil Services 3900 0.00 Ancillary Services 4000-4999 0.00 Community Services 5000-5999 0.00 Enterprise 6000-6999 0.00 General Administration 7000-7999 0.00 Plant Services 8000-8999 0.00 Other Outgo 9000-9999 0.00 617,414,021.00 BALANCE(Total Available minus Total Expenditures and Other Financing Uses) 0.00 EXHIBIT C - 57 ATTACHMENT B Bd. Of Ed Rpt No. 343/12-13 RESOLUTION REGARDING EXPENDITURES FROM THE EDUCATION PROTECTION ACCOUNTFORFISCAL YEAR2013-14 WHEREAS,the voters approved Proposition 30 on November6, 2012; WHEREAS,Proposition 30 added Article XIII, Section 36 to the California Constitution effective November 7, 2012; WHEREAS,the provisions of Article XIII, Section 36(e) create in the state General Fund an Education Protection Account to receive and disburse the revenues derived from the incremental increases in taxes imposedby Article XIII, Section 36(f); WHEREAS,before June 30of each year, the Director of Finance shall estimate the total amount of additional revenues, less refunds that will be derived from the incremental increases in tax rates made pursuantto Article XIII, Section 36(f) that will be available for transfer into the Education Protection Account during the next fiscal year; WHEREAS,if the sum determined by the State Controller is positive, the State Controller shall transfer the amount calculated into the Education Protection Account within ten days preceding the end ofthe fiscal year; WHEREAS, all monies in the Education Protection Account are continuously appropriated for the support of schooldistricts, county offices of education, charter schools and community college districts; WHEREAS,monies deposited in the Education Protection Account shall not be used to pay anycosts incurred bythe Legislature, the Governor or any agency ofstate government; "1 EXHIBIT C - 58 ATTACHMENT B Bd. Of Ed Rpt No. 343/12-13 WHEREAS, a community college district, county office of education, schoo] district, or charter school shall have the sole authority to determine how the monies received from the Education Protection Accountare spentin the school or schools within its jurisdiction; WHEREAS, the governing board of the Los Angeles Unified School District (“District”) shall make the spending determinations with respect to monies received from the Education Protection Account in open session of a public meeting of the goveming board; WHEREAS,the monies received from the Education Protection Account shall notbe used for salaries or benefits for administrators or any other administrative cost; WHEREAS,each community collegedistrict, county office of education, school district and charter school shall annually publish on its Internet website an accounting of how much money was received from the Education Protection Account and how that money wasspent; WHEREAS, the annual independent financial and compliance audit required of community college districts, county offices of education, school districts and charter schools shall ascertain and verify whether the funds provided from the Education Protection Account have been properly disbursed and expended as required - by Article XIII, Section 36 of the California Constitution; WHEREAS,expenses incurred by community college districts, county offices of education, school districts and charter schools to comply with the additional audit requirements of Article XIII, Section 36 may be paid with funding from the Education Protection Act and shall not be considered administrative costs for purposes of Article XIII, Section 36. 12 EXHIBIT C - 59 ATTACHMENTB Bd. Of Ed Rpt No. 343/12-13 NOW, THEREFORE,IT IS HEREBY RESOLVED: 1. The monies received from the Education Protection Accountshall be spent as required by Article XIII, Section 36 and the spending determinations on how the moneywill be spent shall be madein open session of a public meeting of the governing board ofthe District; 2. In compliance with Article XIII, Section 36(e), with the California Constitution, the governing board of the District has determined to spend the monies received from the Education Protection Actasset forth in Attachment2. DATED 2013. Board President Executive Officer of the Board 13 EXHIBIT C - 60 ATTACHMENT2 2013-14 Education Protection Account ATTACHMENTB Bd. Of Ed Rpt No. 343/12-13 Budgeted Expenditures by Function - Detail Expenditures through: June 30, 2014 For Fund 01, Resource 1400 Education Protection Account Description Object Codes Amount AMOUNT AVAILABLE FOR THIS FISCAL YEAR Adjusted Beginning Fund Balance 9791-9795 0.00 Revenue Limit Sources 8010-8099 518,223,719.00 Federal Revenue 8100-8299 0.00 Other State Revenue 8300-8599 0.00 Other Local Revenue 8600-8799 0.00 All Other Financing Sources and Contributions 8900-89939 0.00 Deferred Revenue 9650 0.00 TOTAL AVAILABLE 518,223,719.00 EXPENDITURES AND OTHER FINANCING USES (Objects 1000-7999) Instruction 1000-1999 518,223,719.00 Instruction-Related Services instructional Supervision and Administration 2100-2150 0.00 AU of a Multidistrict SELPA 2200 0.00 instructiona! Library, Media, and Technology 2420 0.00 OtherInstructional Resources 2490-2495 0.00 Schoo! Administration 2700 0.00 Pupil Services Guidance and Counseling Services 3110 0.00 Psychological Services 3120 0.00 Attendance and Social Work Services 3130 0.00 Health Services 3140 0.00 Speech Pathology and Audiology Services 3150 0.00 Pupil Testing Services 3160 0.00 Pupil Transportation 3600 0.00 Food Services 3700 0.00 Other Pupil Services 3900 0.00 Ancillary Services 4000-4999 0.00 Community Services 5000-5999 0.00 Enterprise 6000-6999 0.00 General Administration 7000-7999 0.00 Plant Services 8000-8999 0.00 Other Outgo 9000-9999 0.00 TOTAL EXPENDITURES AND OTHER FINANCING USES 518,223,719.00 BALANCE(TotalAvailable minus Total Expenditures and Other Financing Uses) 0.00 14 EXHIBIT C - 61 HOW EDUCATIONIS FUNDED IN CALIFORNIA Summary Prior to the 1970s, Califomia’s schools were financed largely with property tax revenues imposed by local schooldistricts. This led to dramatic differences in schooldistrict funding. A schooldistrict with very high property values could raise more revenue per pupil with a low property tax rate, while a district with low property values could raise less with a much higherproperty tax rate. The state attempted to reduce these differences by providing morestate aid to low-property wealth districts. Despite this effort, per pupil revenues varied considerably betweendistricts.In fiscal year 1968-69, for example, per pupil expenditures ranged from $577 in Baldwin Park to $1,232 in Beverly Hills.! In 1978, voters approved Proposition 13. The new law limited property tax rates to 1 percent of a property’s assessed valueatthe time of acquisition. Proposition 13 reduced property tax revenues available for local governments and school districts. To cushion the impactto schooldistricts, the state Legislatureshifted state dollars to schools. As a result, California’s schools todayare largely dependentonthestate budget, particularly income and sales tax revenues. Income andsales taxes are more volatile revenue sources than property taxes. When the economysours, unemploymentrises, leading to fewer purchases. This correspondingly leadsto less income and goodsto be taxed. As a result, fewer dollars becomeavailable for schools. Schooldistricts are further constrained in their ability to raise taxes independently ofthe State. Bond issues, usually limited to building programs, require a 55% vote for passage. Proposition 13 also requires that a 2/3 vote is neededforlocal districts to enact parcel tax measures. The Governorhas recently proposedrevising the state’s allocation formula for school districts to increaseflexibility at the local level. This proposal is known asthe Local Control Funding Formula (LCFF). Under LCFF,the state would provide a base grantforall students and additional grants for high-need students such as English Learners and socio-economically distadvantaged pupils. 4 ' California BudgetProject, School Finance in California and the Proposition 98 Guarantee (April 2006). 15 EXHIBIT C - 62 For more comprehensive information on how schools are funded in California, read: © California Budget Project, School Finance in California and the Proposition 98 Guarantee Jt .cbp.org/pdfs/2006/0604 98.pdf © Legislative Analyst’s Office, The Basics ofProposition 98 http://www.lao.ca.gov/2009/edu/prop98_primer/prop98_primer.aspx e LAUSD Budget Realities, California Education Funding, http://budgetrealities.lausd.net/california_education funding * EdSource, /t’s a deal: Brown, top lawmakers raise basefundinginfi nanceformula http://www.edsource.org/today/2013/its-a-deal-brown-top-| finance-formula/33350#. UbinNrXvvnE 16 EXHIBIT C - 63 BREAKING DOWN LAUSD’S BUDGET Introduction This section is a discussion of the District’s overall budget. It summarizes in general terms the various componentsofthe budget with particular attention given to the General Fund. 7 EXHIBIT C - 64 SUPERINTENDENT'S 2013-14 FINAL BUDGET. BREAKING DOWNLAUSD’S BUDGET LAUSD’s budget, like the Districtitself,is lange and complex. This section discusses the different paris of the budget, with particular attention paid to the General Fund budget. Alt dollor amounts represent totals forthe 2013-14 schoolyear. ‘The “Total Budget” Asrequited by California lav, LAUSs budget is reported by “Fund.” The uses of these dif ent Funds can be summarized intofive main categories A B © D, Internal Service Punds ~ moneys used fot goods or services given internally to other District fands on a cost reimbursement basis Debt Service Funds ~ moneys used for the payment of principal and interest on fong-terin bonds Capital Project Funds — moneys used for the purchaseor constructionoffacilities Onerating Funds — moneys used to find the general, day-to-day aperation ofthe District's schools Figare 1: Total Busgot InternatService Funds Debt Service Funds Capital Funds $13,038 Operating Funds + Figures mended. grophie not tosl ass bllons Figure 1: Total Budget aboveshows the District's five budget categories, andthe size of each. Combined they totat approximately $13.08 billion, This would seemto represent the total amount the District has “ EXHIBIT C - 65 SUPERUNTENDENT’S 2013-14 FINAL BUDGET ‘budgeted for the 2013-14 school year, but unfortunately itis a much more complicated story than that, Letus unpack this “Total Budget” one section at a time, Internal Services Funds, which total approximately $1.08 billjon, accountforthe payment of employeehealth & welfare benefits, workers’ compensation, and liability insurance. These funds are for nccountingpurposes as required by State law. They serve as “pass-through”accounts, In other words, the $1.08billion in expenditures here already show up in other fimds, and to count them in addition to the otherfunds wonld be counting them twice. For this reason, Intemal Service Funds should not be considered aspart ofthe funds that help operate District schools. Debt Service Funds, which total approximately $1.63billion, accountfor the payment ofinterest andPrincipal on the District's long-term bonds. Like Internal Service Funds, these funds also exist for‘#ccounting purposes as required by State law, serving as “pass-through” accounts. The $1.63 billion inexpenditures already show upin the other funds (primarily the Capital Funds), and to count them on topofthe other funds would be counting them twice. For this reason, Debt Service Funds should not beconsidered part ofthe funds thathelp operate District schools, Capital Fundy, which total approximately $3.23 billion,are used for the acquisition or construction ofcapital facilities. The money comes primarily fromthe sale of voter approved bonds, These funds areProhibited from being used on general day-to-day operations, a8 voters approved them for specific capitaluses. In addition, the capital projects undertaken will benefit current and furure students, asthe capitalDrojects aremeantto last for decades. For this reason, Capital Funds should not be considered part ofthefunds that help operate District schools, ‘The Operating Funds After poeling away these funds, we are left with $7.09 billion in Operating I'unds, The uses of these fundscan be sumturized into four categories: A. Adult Education Fund moneys used to operate the District's Adult Education propramsB. Child Development Fund ~ moneys used to operate the District's Karly Childhood EducationCenters C. Cafeteria Fund — moneys used to operate the District's food service program D. General Fund —moueys used Cor the basic instructional and administrative operations of theDistrict EXHIBIT C - 66 SUPERINTENDENT'S2013-14 FINALBUDGET Figuce 2: Operating Funds STBTEIE Actieducation rend ESEEITINEN Oh development Fund (alecesin Fun Operating Funds General Fund 1 Figwes rounded graphic moti cea moun n ilions Figure 2: Operating Fund above shows the breakdownofthe District’s Operating Funds,which tolal $6.78 billion. However,this is not an accurate representation ofthe tota! amount spent on these programs, ‘This is because the General Fund subsidizes each ofthe other three operatingfunds, andthese “inter-fund (ransfers” show up twice in the totals above, These “double counts” occur because State lav requires the District to account for inter-fund transtersin this way; funds show up in the total for the General Fund, and in the totals for the other operating fimnds,Here is @ breakdown ofthe inter-fund transfers to the Adult Education, Child Development, and Cafeteria fonds: Program Generated tater-fund Transfer (amountsin Smiltions Revenue (from General Fund) Toll Budget ‘Aduit Education Fund? BIZ $66.1 s1073 Child Development Fund* $131.6 $344 $166.0 Cafeteria Fund $2875 362.9 $3504 Total $4603 $1634 3623.7 These anownis ice ie Unrated and Resred als This $163.4 milion in teansfers is included in the General Fund total, buisalsoincluded in the totals of the other three operating finds. The funds that these three programs generate on their own, and the subsidy each receives from the General Fund,are reflected belowr in Figure 3: Inter-fund Transfers igure 3Interfund Vransfers eter Fund S529M t ranatrs Program Generated Reverue ag Adult Educstion Fund Child Development Fund Cafeteria Fond 1 Pires rounded. graphic nota cole, amon a mens a EXHIBIT C - 67 SUPERINTENDENT'S 2013-12 FINAL BUDGEY ‘The Geueral Fund ‘The $6.47 billion General Fund Budget includes the Unrestricted Program and the Restticted Program: 1. General Fund Unrestricted: moneys that can be used for any general education purpose 2. General Fund Restricted: moneys that must be used for a specific purpose Fundingfor the Generat Fund Restricted Program comes from mumerons sources, ench with different restrictions, For example, TitleI (federal) funds ate for the benefit of low-income and neglected children, EconomicImpact Aid-Limited English Proficient (state) funds are for the benetit of students with limited Englishproficiency. A large component of the General Fund Restricted program is the District's Speial Education Program, This program provides a variety of services for students with special education neods. The total projected cost ofthis mandated program in the 2013-14 school year is $1.50 billion, However, the Distriet does not receive enough dedicated program revenue to cover this cost. Asa result,the Divirict mast take $693,5 ‘uiltion from its Unrestricted Program and transfer it to the Spocial Education Program in what is called an inter-programtransfer (not to be confused with intee-fund transfers), Other inter-programntransfer include those for ongoing and major maintenance of facilities and several siualler programs,Ia total, these transtirs cost the Unrestricted Program$832.8 million, Figure 4: General Fund belowshows the impact ofthese inter-program transfers on the Unrestricted and Restricted programs: Figure 4: GenevalFund Before After Restricted yas EPDM Restricted Unrestricted Unrestricted Pipesrounded, graphic notto tale, amounts in bifons ‘The figures on the right-hand side above, which ave after the inter-program transfers, match those that appear in the Financial Details section ofthis Budget Book. They reflect the fact that $832,8 million was transferred from the Unrestricted Program to the Restricted Program. a EXHIBIT C - 68 SUPERINTENDENT'S 2012-14 FINAL BUDGET. ‘The Unrestricted Program & The Base ‘The Unrestricted Program, which can be used for any educational purpose, totals $3.67 billion, However, 8 large majority ofthis amount gocs to pay for what the District calls the “Base.” The District defines the Use as the very minimum amoun¢ of resources needed to run our schoals, This is determined by State and Kederal Education Cade, court orders and settlements, bargaining agreements, and otherminimum epcrational recommendations, The District must pay for the Base with Unrestricted funds in orderto comply with state and federal requirements. ‘The minimumresources requited for our schools include fhings sueh as * Education Code: class sizes of 30 students or less in kindergarten through 3 grade, per state law © Courtoners/decrees/setttements: a office technicianfor vach elementary school with 500 or Jess students © Bargaining agreements: 10 substitute days per yearallocatedin the budget for each norm- generated register-carrying teacher, per the contract with UTLA * Minimal operational recommendations: one Building & Grounds worker per school site In orderto calculate the total cost of the Base,the District adds up the cost ofproviding these miniraara requirements for every school. For the 2013-14 school year, the total cast of the Base is $2.50 hiltion, nearly 70% of the Unrestricted budget, This feaves only $2.17 billion to invest in the District's remaining priorities, shown in Figure 5: Base and Investments below: Figure 5: Base and Investments Cala) investment Unrestricted Base 1+ Flgurex monde. graphic nota yan, umoune in blind ‘This $1.17 billion isall thatis left to payfor all other student needs, supports,and services across the District. These investments include fower class sizes (though still at levels above national averages), and the maintenance ofclean and safe schools, Without additional revenue, the Districtis limited to providing these minimal supports, EXHIBIT C - 69 un BUDGETED EXPENDITURES DETAIL Introduction ‘This report shows budgeted expenditures by major groups ax defined by the District, The resources are split between General Fund Unrestricted, General Fund Restricted, and Other funds. Otherfunds include Adult Faucation, Child Development, Fiduciary, Cafeteria, Capital, Debt Services, Internal Service, and Deferred Maintenance, 2 EXHIBIT C - 70 EXHIBIT C ~74 SU PE RI NT EN DE NT 'S 20 13 -1 4 F IN AL BU DG ET . Bu dg et ed Ex pe nd it uc es Det ail s ( Am ou nt s in §w il io ns ) or par ici pat ion in ne ad em ic dev ath ton , sup pli es, an d tra vel |A CA DE MI C DE CA TH LO N 50 8 50 .5 lew pen ses | AC CF LE RA TE D AC AD EM IC LJ TE RA CY sa t $2. 4 [Cl as siz e r edu cti on lit era ey cla sse s f ors ec on da ry suh wol s We st er n A ss oc ia ti on of Sc ho ol s & Co ll og es rest for sch ool app lic ati ons , an nu al me st er sh ip fee s, vis iti ng tee me mb er s e xpe nse s, and scho ol ex pe ns es [a cc re nr ra Ti on 80 3 80. 3 {(c oor din ato rsh ip, ov er ti me , s ubs tit ute s, d e ep ro ge ap hi cs ) su g. : $2 1. 3 [Ad min ust eat or of c ou ns el in g s er ve s for sch ool si te s ins tru cti ona l lea der s a nd ope rat ion s $1 28 3 $1 2 $1 29 4 adm ini str ato r. Tov ide s q ua it y c ove er ec hn ic al ed uc at io n a nd Wa ni ng AD UL T ED UC AT IO N so t 10 73 10 74 |A DU LT RD UC AT IO N, iN TE R- FU ND TR AN SF ER , $6 1 $66 .1 |A DV AN CE DP LA CE ME NT FE E su s lA DY IS OR S, 50 9 50 .9 [at tic s (A FT ER SC HO OL PR OG RA MS = Te x2 |A LL CI TY MA RC HI NG BA ND $0 .2 so 2 AR TS PR OG RA M Si S ie s Ar ar Tea che rs to app ort he Ar e p oge inn Feo vid es ai ry pos tio ns Yor A t a Die sar , aBi cBS loa ch diff eren tia an de na ar un en cs , 56 3 54: 5 [be ace rs) for a + |C on ta ct for the Dis t AU DI T FE ES AN D FI ND IN GS $6 5 56. 5 |qu ost ion s c ost . [B EA UD RY OP ER AT IN G AC CO UN T B0 3, 31 0. 3 [ke sou res s t o s up pe r H oa ud ry ope rat ion s: [Op era tio nal su pp or of th eC af zi ns pr og ra m ‘Br eak fas ti nt he Clas sroo mt ne [C AF ET ER IA 92 $4 6 $5 39 8 gu ar 4 EXHIBIT C - 72 CA FE TE RI A, IN TE R- FL IN U T RA NS FE R SU PE RI NT EN DE NT 'S 20 12 -1 4 F IN AL BU DG ET ‘B ud ge te d E xp en di tu re s D eta ils (A mo un ts in S m ill ion s) $6 29 so co td an ce wic h a cc ou nt in g ‘8 spe cia lf u $0 29 [C AM PU S AI DE S. $2 9) $0 7 s e Tor sc le ce d s e h IC AP IT AL FI ND S s1 79 sa ia i2 } [Re soa roe sf or th e rep aym ent of prc ipa l a nd S e o n | eon ifi cat es 83 ,1 59 1 [pr oje ts IC AR FF R TE CH NI CA L ED UC AT IO N $4 0 14 pr og ra m o f s tu dy tha t inv olv es a m ult iye ar se yu en ce of C AT EG OR IC AL PR OG RA M AD VI SO RS 50 3 $5 3. 9 [C EN TR AL OF FI CE -R DU CA TI ON AL SE RV IC E CE NT ER S 1 5 5 $1 05 .2 $8 83 $4 69 .0 (T ED SU PP LE ME NT AL TI ME (X Z, & [P RO FE SS IO NA L NE VE LO PM EN T) si z sa i $8 24 IC HA RT ER SC HO OL CA TE GO RI CA L BL OC K GR AN T. 22 2 822 .2 [S om the Sta te. IC HA RT RK SC HO OT . FE E FO R SE RV IC E S4 0 TO E ‘$4 .2 [Ch art er sch ool Te as f o r Te tr ap ro ve d e a n [c IV IC CE NT ER Si a 4 eh Tac s hy co ta mu ni ty BO UT S (C LA SS IF IE D OV ER TI ME , XE 30 5, Wa $8 4 jon al cla ssi fie d w ss ig um on t C LE RI CA L SU BS TI TU I S $3 8 so o lac eme nt res our ces Tor abs ent cle ric al su pp or si s IC LE RI CA L. SU PP OR T su se 58 6 le ie at pos iti ons 51 21 .6 lAs cio unt , O ffi ce Te ck (C OA CH ES IN ST RU CT IO NA L 30 1 $3 50 F e C OM MO N CO RE ST AT E ST AN DA RD S so ur se u [COORDINATED EARLY IN TE RV EN IN G SE RV IC ES 524 2 . 51 57 8 EXHIBIT C - 73 CO OR DI NA TO RS , SU PE RI NT EN DE NT 'S 20 13 -1 4 F IN AL BU DG ET Bu ud ge te d E xp en di tu re s D eta ils (A mo un ts in mi li on s) $2 42 . [C OU NS EL IN G AI DE S 30 8 [C OU NS EL IN G TI ME (R EG IS TR AT IO N) $1. 1 [ CO UN SE LO RS $5 27 [8 IC OC NS EL OR S. P les ay CU ST OD IA L O VE RT IM E & RE LI EF [Re our ees fo r ad di CU ST OD IA LS UP PL IE S Sep pli es te sup por t t he m 84 9 fsc toa ls ite s, [Su ppo rts and ’ mam lo tt Tie sa nd DA TA PR OC ES SI NG TV o cai pme nt, ma te r S1 06 D EB I SE RV IC E $1 ,6 29 at for Ca ri ta s oF 51 .6 47 0 VA LS LO NG EV IT IE S, $6. 3 TO NS 32 81 cu ps fe sch ool s [E AR LY CH IL DH OO D DE VE LO PM EN T $0 0 S T s Be is TR AN SF ER Ip re co rd ed im he Ger ard in ac ue rd an ce wit ha ev ou nt in g s4 4 Te nd IE AR IY RE TI RE ME NT IN CE NT IV E a n i d sa d EM PL OY EE BE NE FI TS AD IC SI Me N IS PU BL IC [E MP LO VE Y RE TI RE ME NT S $5 5 E MP LO YE ES LO AN ED TO AG EK CI ES /O FF IC E [Di str ict em pl oy ee s loa ned to oth er en ts Th e D is et & 53. 9 lre int urs ed tor sa la ri es | E NE RG Y RF RA TE CO NS ER VA TI C "EL S [m mp ra ve re nt of bal ldi ngs an d ab an Ra te r Je -R AT E MA TC HR EB AT E $1 82 , E VA LU AT IO N IEACILITIES MAIN TENANC E/ OP ER A s e sa s ie ewt ing uls ine ss rep air $4 95 |for au si tv iv a: an ds ven EXHIBIT C - 74 IELMENG $2.2 52 2 [Fu nds ve ci ve d fo m Fi lm in g a nd res cur aes yo to be all oca ted [ IN AN CI AL MA NA GE RS 59 5 $9 5 Ma na ge s an d a dvi ses on fn ar el al wa te rs wi d A cc ou nt in g pr oc ed ur es per tai nin gt os tul em bo dy fu nd s [F IRE DA MA GE B S HT S, GI FT ED AN D TA LE NT ED PR OG RA M( GA TE ) 52 6 $2 6 Sup por ts sal tr xi in g t or em pl oy ee s w ho wo rk wi ih ER ed sea den ts H A L T SE RV IC ES $2 05 su . $0 22 . [Pe rso nne l a nd ope rat ion al ex pe ns es of St ad en t W e a l age , m rs e s ubs tit ute ). Ma nd at ed nur sin g ser vic es, au en da nc er eco ver y, add iti ona lp sy ch sup por t II MA -C IB RA RY FI NE S ‘3 08 30 IN DI RE CT CO ST (38 733 ) s m S1 5 $0. 0 ces sar y i n t ho ope rat ion af @ D isw ist or he pe rf or ma nc ea fa se rv ie tha a e ofs uc h na te tha t IN ST RU CT IO NA L AI DE S $0 3 $6 2 So s ana l co nd uc ti ng I NS TR UC TI ON AL MA TE RI AL S $5 84 su zy 51 86 3 IN SU RA NC E PR EM IU MS , 0 8 20 4 pr ep ay aa d IN D TR AN SF ER CE RT IF IC AT E O F CI PA TI ON (C OS ) a si a II NT ER -F UN D TR AN SF ER ME DI CA RE PA RT D $9 2 39 2 req uic eue nts , tow s pec ial fun d, IN TE RN AL SE RV IC E FU ND S $1 ,0 75 8 10 75 .6 [Pa ymc nis an d e li mf or He al d and We l War ker s!' Co mp en sa ti on . JU NI OR RE SE RV EO FF IC ER TR AI NI NG CO RF S UR OT C) 58 4 ss 4 jO R C OM PT IA NC E. 30 8 3 0 3 [GIABILITY RESERVE a 3 Biss a EXHIBIT C - 75 SU PE RI NT EN DE N FI NA L BU DG ET Bu dg et ed Ex pe nd it ur es Det ail s (Am oun ts in S m ill ion s) [Pr ovi des ass ist anc e t o s md en ts an d t eac her s t ae ha at LI BR AR Y AI DE S S1 6 $2 8 [S OC AL IN TT IA TI VE SC HO OL CU MP SU M VA CA TI ON MA GN ET SC HO OL S RE SO UR CE S S1 70 ) SI D ive Sa pp an R a u ‘at ati on an do the rb en t, tio nal res our oes (or ma gn et sc ho ok an dc en te r Ti mb ur se in en td ue to ab arg ain ing MI LE AG E & 1 IT IO N RE IM BU RS EM EN T 31 6 50 0 $1 .6 unit agr eem ent , [As ses sa nd ve ry tea che rs wh o mo at hig h |ta nda rds do vc lo pe db yt he Na ti on al Bo ar df or Te ac hi ng NA TI ON AL BO AR D FO R PR OF ES SI ON AL TE AC HI NG IS TA ND AR DS s2 0 32. 0 fr NE W SC HO OL S ST AR TU P CO ST S, $2 5 25 de ve lo pm en td ay s ‘o m so a film ing ren tal Sc ho o r eso urs es IN ON -F IL MI NG RE NT AL . 59 2 IN GR SE S Bs ) (G FR IC E O F CI VI L RI GH TS SI 2 To au pp or r u nd er fons S l i tea che rs, adm ini str ato rs an d |O PE -N OR M & ON E TI ME SC HO OL AL LO CA TI ON S sl oo ine Go nc ra l M ai ni en an se pro gra mm, Pla nt tho ol Ba th ro om Re uo va ti on , & Pla nt [O NG OI NG & MA JO R MA IN TE NA NC E $9 6 59 6. 7 e c lOp tia ns sch ool s a re de si gn ed ta pr ov id e s tud ent s a smal ler, Im re per son ali zed ed uc at io ns up po rt ed by kn ow !e dg ea bl e, sup por tiv ee du ca to rs wo rk in gc oll abo rat ive ly, Th eO pt io ns lsc hoa ls” str eng th is the ir foc us o n in di vi du al iz ed lin etu cti on wh ie h i nch ude s o pe n JO PT IO NS PR OG RA M s a 93 2 S8 64 Thr oug h w or ks ho ps Ga in in g ad sch ool in vo lv em en t, [Re ser ve for dif fer enc es be tw ee n a ctu al an d 8 [Fe der al an d S tat e C ate gor ica l r eso ure ss, |P AR EN T IN VO LV EM EN T 54 7 sa z $9 5. 6 $9 56 T E 31 98 [P RO P 3 9 C HA RT ER SC HO OL CO LO CA TI ON Su e $3 8 PR OP ER TY RE NT AL S $6 i 0 2 EXHIBIT C - 76 [PSYCHIATRICSOCIAL WORKERS PSYCHOLOGISTS. 812 .4 Jer oup s RE AS ON AB LE AC CO MM OD AT IO NS , Si gn La ng ua ge Int erp ret ers , an d S pec ial Ed uc at io n $4 7 |As siv ane s IR ED UC TI ON IN FO RC E EX PE NS E. [Re sou rea s t o S up po r c or fi ea ed red act ion ia Tar ee m 0 R EG IO NA L OC CU PA TI ON © 5 P ro gr am s p ro vi de qu al ly Ce e in in g ( 8 div ers e p ap ul $35 .6 [hi ghs cho oly out h, RE SE RV E FO R NE W GR AR Fl 2s .4 [Re sou rse s f or po nd in g g ran ts [R UB RI SH TT RA ST I DI PO SA L EL cho uls an d off ice s S AL AR Y OV ER PA YM EN T Sa n ay me nt s O f Disr et p er so nn el [S CH OO L PA TI CE 37 7 nd dis tal pr op er y. IS CH OG L RE AD IN ES S LA NG UA GE DE VE LO PM EN T PR OG RA M Fan ora l l an gu ag e p ro gi mm tha t p rep are s s tud ent s f or S5 4 IS CH OO L RE CO NF IG UR AT IO N 21 {A L E DU CA TI ON IN TE RD IS TR IC T E XC ES S CO ST PA YM EN T 07 Sc uc at io na di ve rt ed pr og ra m o F [de vel opm ent al gr os s m ot ar act ivi tie s, ga me s, spo rts , a nd in a s pec ial ly de si gn ed physic al e du ca ti on pr og am ia a Si 7. 8 jsp esi al da yp ro gr am ‘$2 7 [in str uct ion al l ead ers a Sp ec ta l B au ca ti on Cen ter s ISPED-ALLOCATION TO S CH OO LS FO R CO MP LI AN CE , $6. 1 fin We li ge nt , EXHIBIT C -77 IS PE D- AS SI ST AN T O VE RT IM EX & Z HT IM E‘ RE NO RM IN G St s ST s [Re sou rce s for ad ai to na l S pec ial Ed uc at io n ment s, rep lsc omc at fo r a bse nt ass ist ant s, lre nox min g. |S PE D- AS SI ST AN T P RI NC IP AL . EL EM EN TA RY UC TI ON AL SP EC IA LI ST . 3 9 32 39 IBr ovi de su p cle men tar y set ivo ‘Sp eci al Ed uc at io n c on pl an ce IS PE D- AS SI ST AN TS $5 27 .6 sa z7 6 in in g a nd ed uc at io n thr oug h t he pre sen tat ion of edu cat ion al mat eri als or IS PE D- AS SI ST AN TS -P RE SC HO OK . S1 6 "As sis t pre schoo l tea che rs hy ea rn g f or the phy sic al wo od s lof sma den ts wi th dis abi lit ies an d h elp ing in hc i t ra ni ng , an d e du ca ti on the nug h d he pre sen tat ion of edu cat ion al IS PE D- AS SI ST IV E TE CH NO LO GY 52 0 SP ED -C AR EE R & TR AN SI TI ON PR OG RA M $1 06 s o IS PE D- CE NT RA L OF HC E si s si k IS PE D- CL ER IC AL SU PP OR T- SP ED CE NT ER S a 7 7 $0 9 30 9 IS PE D- DE AP AN D HA RD O F HR AR IN G $6 9) $6 9 ‘of He ar in g ( DH E) pr og ra m sw it h w d ocu men ted he sr in g l oss the t the ea re cu ri cu hu |S PE D- DI RE CT CO SY TR AN SF ER , ( 8 5 $9 9. 5 9. 0) Spe cia l E du ca ti on uc h as Ad a [S PE D- AO NA TI ON S: $1 2 $1 2 [So ppo rt for stu den ts sch ool s a nd ufic es b y d on ee , [S PE D- ED UC AT IO NA LL Y RE LA TE DM EN TA L HE AL TH IS ER VI CE sa M3 2 iy e la te d c ou ns el in g s erv ice s t at may + EXHIBIT C -78 SU PE RI NT EN DE NT 'S 201 Bu dg et ed Ex pe nd it ur es Det ail s ( Am ou nt s in § mi FI NA L $1 97 IS PE D- EX TE ND ED SC HO OL YE AR IS PE D- IM A A LL OC AT IO N TO SC HO OL S IS PE D- IM A- EQ UI P- MA TE RI AL si a IS PE D- IN FA NY PR OG RA M SE RV IC ES Ihc ee yea rs wi th a c ari ng ls , imp air men t, ur sev ere or th op ed i $4 3 IS PE O- LE AS TR ES TR IC TI VE EN VI RO NM EN T. [C OU NS EL OR S si z IS PE D- NO NP UB LI C SE RV IC ES St ee st en o IS TE D- NU RS ES 9 [S PE D- OC CU PA TI ON AL & PH YS IC AL TH ER AP Y s a IS PE D- PA SS TH RU FO R IN DE PE ND EN T CH AR TE RS , 56 5. 5 $6 55 IS PE D- PR ES CH OO LP RO GR AM SE RV IC ES (I NC LU DI NG [ITINERANT oF la ng ua ge , s oci ale mo ti on al , m ot or an d i, Pa nu li es an ds taf fw or kt oge the rt o ide st he sor vie ed eli ver yf or ea ch si s si s 3 EXHIBIT C - 79 IS PE D- PR IV AT E SC HO OL S SU PP OR T SU PE RI NT EN DE NT 'S 26 Bu id ge te dE xp en di ta re sD er a (A mo un ts in § mil lio ns} IS PE D- PR OG RA MS PE CI AL IS TS .C ER TI FI CA TE D SY CI AT RI C SO CI AL WO RK ER S 78 IO LO GI ST S. sa ta [S PE D- RE IM BU RS EM EN T- DU E PR OC ES S. s7 6 IS PE D- SP EE CH & LA NG UA GE , $3 54 92 TR RO GR AM S a 7 IER SP EC IA L DA V PR OG RA M 23 50 IS PF IS -T EA CH ER -S PE CI AL DA Y PR OG RA MS lP RE SC HO OT . S3 19 ) IS PE D- TE AC HE R- SU PP L & SU B TI ME /R EN OR MI NG ?P RO F DE VE LO PM EN T $1 50 |S PE D- TE MP OR AR Y PE RS ON NE L AC CO UN T 005 ¥0 Su pp or he Ins rac tio nsl pr og en y a nd sm Spe cia lE du eu ti on Co nt es yu 2 [S PE D- TR AN SP OR TA TI ON $6 09 ) IS PE D- VI SG AL LY IM PA IR ED omp air ed (V 0 jom imp aic men ts. Th es e s esv ice s m ay he ign cla ssr oom , ser vic es in a V i |sp eva l a y pr og ra m o n a je ne ra lc dg ca ti on cam pus . iti ner ant ser vic es for s tu de nt ot spe cia l e du ca ti on sc ho l 49 , $4 9 |an d t he sc ho o! for the Vis ual ly im pa iv ed IS TU DE NT HE AL TH AN D HU MA N SU PP OR T PERSONNEL, $6. 56. 1 |si sin 2 s taf fin g l ove ls for sup por t p er so nn e! 2 EXHIBIT C - 80 ISURSTITU TE S- DA Y TO DA Y AN D LO NG -T ER M SU PE RI NT EN DE NT 'S 201 3-1 4 F IN AL BU DG ET IMMER SCHOOL-CREDIV RECOVERY "fo fu nd the sa mn me r s cho ol pr og ra m or G eUT V E D $1. 0 leo urs es. TE AC HE R - L ER AR Y ME DI A (Al ign : U re sch ool ib ra y: 9 |se rvi cos wi th te se hn o st a [T EA CH ER AC AD EM IC DI FF ER EN TI AL S [Su ppl eme nta lp ay TE AC HE R AS SI ST AN TS S0 4, ‘n d s up pe r o F insrusi on G na de jon of ah igh iyq un li fe d cl as sr oo m TE AC HE RS , S 1 1 T EA CH ER S - C ON TR AC T FO OL $5 7 [T EL EP HO NE S2 10 wa TE MP OR AR Y PE RS ON NE L A CC OU NT gi o [Re sou rce st o su pp or the To st 51 9. 9 Jop era tio ns TE ST IN G 2 35. 2 |Si aud ard s a nd as se ss me nt at in g HE XT BO OR S 36 5 w T $36 .1 [Di swi et fu nd ed eb oo ks T RA NS PO RT AT IO N [Ba s W an sp or ia ti on forall Di mn ct re ve li ng pro gea n™ $8 3 [E LI TE S S2 0 V EH IC LE RE PA IR SR EP LA CE ME NT 38 6 | WA TE R/ TO XI C TE ST IN G/ FE ES & PE RM IT (C A CL EA N la n) $13 (THIS PAGE INTENTIONALLY LEFT BLANK) EXHIBIT C - 81 DISTRICT AND COMMUNITY PROFILE The Los Angeles Unified SchoolDistrict covers 710 square miles, encompassing mostofthe City of Los Angeles,all or parts of 31 othercities, and various unincorporated areas of Los Angeles County. Approximately 4.8 million people live within the District’s boundaries, including 3.8 million wholive within Los AngelesCity limits. District CI a The Los Angeles Unified School District is the nation’s second largest schooldistrict. Its student population mirrors the ethnic and financial diversity of the communitiesit serves: Enrollment. Thetotal K-12 enrollmentas of September 2012 was 655,535 students, including those attending magnet, opportunity, and continuation schools and centers, charter schools, and schools for the handicapped. Total K-12 enrollment was divided between regular District schools (566,604) and fiscally independent charter schools (88,981). When one includes individuals served through community adult schools, regional occupational centers and programs, skills centers, and early childhood education centers, the District’s total enrollmentis approximately 726,765. Student Characteristics. The District’s students come from a wide variety ofbackgrounds. According to the most recent 2012-13 survey, which does not include charter schoo! data, some 93 languagesother than English are spoken in LAUSDschoolsby the District’s 152,781 students who werestill learning to speak English proficiently, with the primary non-English languages being Spanish (93.2% of English learners), Korean (1.0%), Armenian (1.1%), Tagalog (0.9%), Cantonese (0.4%), Arabic (0.3%), Vietnamese (0.3%) and Russian (0.4%). The District’s student population can be summarized by ethnicity as follows: Hispanic (74.3%), Black, not Hispanic (8.9%), White, not Hispanic (8.9%), Asian (6.4%), American Indian/Alaskan Native (0.4%), and Pacific Islander (0.4%). Approximately 76.55% of LAUSDstudents qualify for special funding underfederal poverty guidelines. (Source ~ LAUSD 2012-13 Consolidated Application). Structure and Number ofSchools. Beginning in the 2012-13 fiscal year, the District is divided into five Local Education Service Centers which serve elementary, middle, and senior high schools. The Local Education Service Centers will provide support to 18 primary centers, 457 elementary schools, 83 middle schools, 98 high schools, 23 multi-grade or “span” schools, and 34 magnet schools. For the 2012-13 school year there are an additional 547 District school/center sites, which can be summarized as follows: 149 Magnet Centers * 8 Fiscally Independent Charter Primary Schools * 6 Other Learning Communities * 51 Fiscally Independent Charter Elementary Schools * 15 Special Education Schools * 41 Fiscally Independent Charter Middle Schools 82 Options Schools (including 26 AEWC) * 58 Fiscally Independent Charter High Schools + 85 Early Education Centers * 41 Fiscally Independent Charter Span Schools * 10 Adult Service Centers * J] ROP Center Student Achievement. District-wide, students continue to progress—earning doubledigit gains on the Academic Performance Index (API), for the fifth straight year. The 2012 score jumped 16 points, outpacing the state average again, and posting the highest gain amongurban schooldistricts. The overall 35 EXHIBIT C - 82 score of 745 indicates broad rather than isolated growth in student achievement. African American students increased by 17 points, Latino students increased by 16 points, English learners increased by 13 points. Students with disabilities increased by 26 points compared to 14 points statewide. LAUSD students made double-digit increases in proficiency in both English languagearts and mathematics. Employees. Based on employeereporting and classifications for the 2012-13 fiscal year, the District had 59,811 regular employees, including 27,999 teachers 5,853 certificated support personnel and administrators, and 25,959 classified personnel. A “certificated” employee mustholda requisite teaching, support service or an administrative services credential. c ity C) sett Economic Characteristics. Los Angeles is the most populouscountyin the nation, andis larger in population than 42 states. Population is expected to eclipse the 10 million mark by 2014. Los Angeles County’s largest industry clusters by employmentare entertainment, trade (transportation, logistics and distribution), business services, knowledge creation and fashion. The various elements of the Los Angeles County economyexperience cyclical trends. Among the trends seen in 2013 are the following: * Los Angeles County’s population continues to increase. The Los Angeles County Economic Development Corporation (LAEDC) projects an increase of approximately 52,400, or 0.5%, in 2013. * Total estimated 2013 nonfarm employmentin Los Angeles County is expectedto increase by 1.7.6% or 52,300 jobs, following an increase of 1.4%, or 21,000 jobs in 2012. * LAEDCprojects total personal income will increase by 3.6% in 2013 and 4.5% in 2014. The per capita personal incomeis expected to average $45,257 in 2013, up by 3.1% over 2012. * LAEDCforecasts the ConsumerPrice Index will increase by 1.4% in 2013. * LAEDCforecasts an average unemploymentrate for Los Angeles County of 10.0% for 2013, a slight decrease from 2012 average of 11.1%. The unemploymentrate is expected to decline in 2014 to an average 9.7%. The largest employmentgains in 2013 are predicted in health services, education, information,and leisure &hospitality sectors. Government entities will experience reduction in work force associated with continuing budget problems. * Approximately 11,000 new housing permits wereissuedin 20121, a 5.7% increase from 10,400 permits issued in 2011. LAEDCestimatesthat approximately 15,800 permits will be issuedin 2013 and 22,650 permits will be issued in 2014. * The value of nonresidential building permits issued during 2012 decreased -24.9% from 2011. LAEDCforecasts a 43.6% gain in 2013, followed by a 19.3% gain in 2014. * The LA County median homeprice for 2012 was $327,470, up by 6.48% year-over-years. EXHIBIT C - 83 LOS ANGELES UNIFIED SCHOOL DISTRICT BUDGET ANDFINANCEPOLICY Summary The Board of Education adopted the District’s Budgetand FinancePolicy in June 2004. The Policy is intendedto asist the Board of Education in making soundpolicy, guide the developmentofthe District’s budget, enhance the managementofthe District’s finances, minimizethe risk that the District’s financial condition will create a need for Los Angeles County Office of Education (LACOE) action, and reducepotential audit concerns. The Board and Superintendentsetpriorities and allocate resources through the budget. The Budget and Finance Policy was developed based onstandards from the Government Finance Officers Association’s (GFOA) “Recommended Budget Practices” document. ThePolicy is also consistent with the State Board of Education (Education Code Sections 33127, 33 128), and current Governmental Accounting Standards Board (GASB)rules and standards. In any areas that LAUSD’s budgeting and accounting practices were notin compliancewith this policy at the time ofits adoption, implementation was phased in. In February 2009,effective for the 2010-11 financial statements,GASBissued Statement No. 54 Fund Balance Reporting and Governmenal Fund Type Definitions. This new standard hasleft the total fund balance amount unchanged, but has changed the categories, the terminology, and how the components of the fund balanceare presented andestablished. The fund balance policyis intended to provide guidelinesandto establish procedure for reporting fund balance. The Finance and Budget Policyis a “living document,” which the District expects will evolve over time to best connectDistrict policy, budgeting, and financing principles. The Budget and Finance Policy enumerates various broad principles for budgeting and financial operations, as follows: Principle One: The budget should be based on the goals ofthe Board and Superintendent. The Board and Superintendent have the primary responsibility for developing and articulating the District’s goals. As the budgetis developed and presented, these goals should be considered. Principle Two: The budget should be based on soundSinancialprinciples. LAUSD’s budget should keep the District financially viable and able to sustain its key programs over time. The following specific financial principles are explained in detail in the full Budget and Finance Policy document: e Balanced Operating Budget ¢ Appropriate Use of One-Time Revenues ¢ Alignment of Budget with Expected Expenditures e Adequate Reserves e Revenue Maximization e Revenue Estimation * Cost Recovery Through Fees and Charges 37 EXHIBIT C - 84 Multi-Year Capital Plan and Budget e Asset Management ¢ Equipment Replacement e Prudent Debt Management e Program Sustainability ¢ GASB Compliance Principle Three: The budget should be clear and easy to understand. The budget should be organized andpresented in such a way that readers can understand: ¢ What the District intends to do and howit intends to do it ¢ TheDistrict’s overall financial condition ° The historical context for LAUSD programs Consistent with the GFOA standards, LAUSDhasidentified guidelines for the presentation of budgets.These standards provided guidance for development of LAUSD’s budgets from four perspectives,as a: Policy Document e Financial Plan e Operations Guide ® Communications Device Principle Four: The budget should be timely and easy to manageatthe schoollevel. The process ofmanaging the budgetis easier for schools andoffices if they have access to systems and training. The Chief Financial Officeris responsibile for defining the parameters under which schools and offices may managetheir budgets,as set forth by the Board of Education. Principle Five: The budgetprocess should inform stakeholders. Prior to the adoption ofthe final budget, District staff should present the budgetto stakeholders. The Board should also conducta formal public review of the budget, priorto its adoption. The District’s Budget and Finance Policy can be foundin its entirety as an Appendix to the Superintendent’s 2013-14 Final Budget document. 38 EXHIBIT C - 85 LOS ANGELES UNIFIED SCHOOL DISTRICT DEBT MANAGEMENTINFORMATION Summary Debt Management Policy. In April 2005, the Board ofEducation approved a Debt ManagementPolicythat established certain guidelines for the issuance of various types of debt instruments and other long-term financialobligations. The Board is required to review the Policy annually. The Office of the ChiefFinancial Officer periodically recommends changesto the Policy to better serve the District’s interests.The most recent Debt Management Policy, issued in September 2011, is included as an appendix to thisbudget document. The Policy requires preparation ofan annual Debt Report for submission to the Board andtheSuperintendent. The 2011-12 Debt report was submitted to the Board on January 3, 2013. * TheDistrict’s actual performance on debt factors, targets, and ceilings are included in the DebtReport presented to the Board. * Leases undertakenthrough the District’s standard procurementprocessfor all equipment with ausefullife of less than six years are excluded from the Policy. The District’s Debt Report includes the following general topics: 1. General Obligation Bond debt a. The District’s bonded debt limitation and assessed valuation growth b. Bonds outstanding and bondsauthorizedbut unissued c. Intended issuances ofbonds d. Tax rate performancefor outstanding bonds i. Proposition BB tax rates li. Measure K tax rates ill. Measure R tax rates iv. Measure Y tax rates v. Measure Q tax rates 2. Certificates of Participation (“COPs”) debt a. COPsoutstanding 3. The marketfor the District’s debt a. Municipal bond market b. Costof the District’s fixed rate and variable rate debt 1, Fixed rate debt ti. Variable rate debt 39 EXHIBIT C - 86 4. TheDistrict’s credit ratings a. Long-term credit ratings on General Obligation bonds and Certificates of Participation b. Short-term credit ratings on tax and revenue anticipation notes 5. Debt ratios a. Use of debtratios b. LAUSD’s compliance with debt managementpolicy, debt levels compared to other schooldistricts Debt Limit Information. Education Code §15106 mandates that“any unified school district . . . mayissue bondsthat . .. may not exceed 2.5 percent of the taxable propertyof the district as shown by thelast equalized assessmentofthe countyor counties in which thedistrictis located.” Based on the District’s 2011-12 Comprehensive AnnualFinancial Report (pg. 149), the District’s assessed valuationlegal debt limit, and legal debt margin are computedas follows: > Bonded Debt Limitation and Legal Debt Margin Asof June 30, 2012 (in $000s) Total Assessed Valuation $469,095,225 Bonded Debt Limitation (2.5% times Assessed Valuation) $11,727,381 Less: Outstanding General Obligation Bonds! 11,290,485 Equals: Legal Debt Margin’ $436,896 ’ The District’s Comprehensive Annual Financial Report (“CAFR”) reports these figures differently by adjusting them forunamortized bond premiumsand discounts and amountsavailable in the Bond Interest and Redemption Fund to pay bondprincipal. 40 EXHIBIT C - 87 Debt Trend. The following table summarizeshistorical information regarding the District’s ratio ofnet general bonded debt andcertificates ofparticipation (COPs)to assessed value and net debt per capita: Debt Population Total Service Fiscal Los Angeles Assessed Gross Monies Year Unified(1) Value Debt (2)) Avaijable (3) Net Debt (2) 2002-03 4,660,473 287,525,935 5,214,016 202,893 5,011,123 2003-04 4,718,101 308,528,780 5,109,035 215,149 4,893,886 2004-05 4,775,778 331,925,137 5,108,370 217,807 4,890,563 2005-06 4,784,682 363,869,479 6,243,197 309,525 5,933,672 2006-07 4,825,016 402,608,837 7,066,456 268,111 6,798,345 2007-08 4,839,918 440,914,390 8,008,138 417,991 7,590,147 2008-09 4,853,617 474,789,798 8,670,693 490,953 8,179,740 2009-10 4,875,984 474,977,291 12,577,382 354,884 12,222,498 2010-11 4,564,712 463,845,551 12,309,089 442,118 11,866,971 2011-12 4,576,585 469,095,225 11,952,863 416,294 11,536,569 (1) Estimate (2) Includes bonded debts (General Obligation Bonds) ,COPs,capital lease obligations and loans. (3) This is the amountrestricted for debt service principal payments. Sources: Los Angeles County Auditor-Controller Taxpayers’ Guide." Los Angeles County DepartmentofRegional Research Section. Net Debt to Assessed Value 1.7428% 1.5862% 1.4734% 1.6307% 1.6886% 1.7215% 1.7228% 2.5733% 2.5584% 2.4593% Net Debt Per Capita $1,075 $1,037 $1,024 $1,240 $1,409 $1,568 $1,685 $2,507 32,600 $2,521 Scheduled Debt Repayment for 2013-14 by Fund. The following table indicates the amounts included inthe 2013-14 Final Budget, by Fund, for the purpose of repaymentofmajor debt. This table excludes such short-term debt as Tax and Revenue Anticipation Notes (TRANS): Bud geted Amount Fund. {millions Bond Interes t and Redemption Fund $ 979,3 Cap ital Serv ices Fund 46.3 TOTAL $ 1,025.9 41 EXHIBIT C - 88 (THIS PAGE INTENTIONALLY LEFT BLANK) 42 EXHIBIT C - 89 DESCRIPTIONS OF “FUNDS” UTILIZED BY THEDISTRICT —eeDBEAMEISTRICT California State law requires schooldistricts to organizetheir financial reporting by “Funds.” The California School Accounting Manual, which governs schooldistrict budgeting and accounting practices in California, defines “Fund”as “an accounting entity with a self-balancingset of accounts recording financial resourcesandliabilities. It is established to carry on specific activities or to attain certain objectives ofan LEA (a Local Educational Agency) in accordance with special regulations,restrictions, or limitations.” (Section 101, December 1998). LEAssuch as the Los Angeles Unified SchoolDistrict are required to budget by Fund. The Superintendent’s Final Budgetis comprised ofa General Fund and 21 special funds. The uses of these funds can be summarized asfollows:! Operating Funds. General Fundis used to account for the basic instructional, support, and administrative operations of the District. The General Fund includesservicesto regular K-12 schools, the special education program,and other programs. The General Fund can support and accountfor both restricted and unrestricted funding sources and expenditures. Manyoftherestricted sources are summarized in the Restricted General fund section of this document. Adult Education Fund is used to account separately for federal, State, and local revenues for adult education programs, as well as for expendituresin support of that program. Expenditures in the Adult Education Fund are limited to those for adult education purposes. Moneysreceived for programsother than adult education maynot be expended for adult education purposes (Education Code §52616[b]). Child Development Fundis used to accountfor federal, State, and local revenues to operate child developmentprograms. In the Los Angeles Unified School District, the Child Development Fund coversthe activities of the Early Childhood Education Centers that operate throughout the District.The Child Development Fund may be used only for expenditures for the operation ofchild developmentprograms, but may be subsidized by the General Fund. Cafeteria Fund is used to account for federal, State, and local resourcesto operate the District’s food service program (Education Code §38091 and §38100). Deferred Maintenance Fund is used to accountfor the remaining balance of State apportionments and the District’s contributions from fiscal year prior to 2009-10 for deferred maintenance purposes (Education Code §s 17582 through 17587). Expenditures in the Deferred Maintenance Fundare for major maintenanceprojects such as plumbing,heating, air conditioning, electrical, roofing, floors, andinterioror exterior paint. ’ Definitionsreflect the California School Accounting Manual descriptions where available, augmented by information fromthe District budget and from the District’s 2006-07 Comprehensive Annual Financial Report to reflect specific District usagesof individual funds. 43 EXHIBIT C - 90 Capital Projects Funds. Building Funds exist primarily to account for proceeds from thesale ofbonds (Education Code §15146). Expenditures are most commonly made against Object 6000 — Capital Outlay accounts. Asthe result of the passage of multiple bond elections, the District operates five separate Building Funds: Building Fund accounts for proceeds from the sale ofbonds prior to 1997,as wellas State allowances and other resources designed forfacilities expansion. Building Fund— Proposition BB accounts for the proceeds resulting from passage of Proposition BB,a local school bond measure approved by the voters in April 1997 for construction ofnew schools and repair and modernization of existing schools. Building Fund— Measure K accountsfor the proceedsresulting from passage of Measure K,a local school bond measure approved by the voters in November 2002, for new school construction and repair and modernization of existing schools. Building Fund - Measure R accounts for the proceedsresulting from passage of Measure R, a local school bond measure approvedbythe voters in March 2004, for new schoolconstruction andrepairs to existing schools. Building Fund~ Measure Y accounts for the proceeds resulting from passage of Measure Y,a local school bond measure approved by the voters in November 2005, for school construction and modernization, with the goal of returning all schools to a traditional calendar. County School Facilities Funds accountfor revenues and expenditures resulting from building projects funded primarily or in part from State bond elections or from matching funds. The District used to operate four separate County School Facilities Funds. These four fundsare consolidated into one single County School Facilities Funds starting 2013-14. County SchoolFacilities Fund— Proposition 1D provides funding from the Kindergarten- University Public Education Facilities Bond Act of 2006. Proposition 1D was approved bythe voters in the November 2006 general election. Funds provide additional dollars for existing school facilities programs. Fundsalso provide new dollars for seismic mitigation of the most vulnerable schoo!facilities, creation of career technical educationfacilities, reduction of severely overcrowded sites, and incentives for the construction of high-performance“green” schools. County SchoolFacilities Fund — Proposition 55 accounts for the matching fundsreceived as a result of the passage ofMeasure R. Proposition 55 was passed bythe voters in March 2004. County SchoolFacilities Fund — Proposition 47 accounts for apportionments received from the State SchoolFacilities Fund. The passage of Proposition 47 in November 2002 authorized the sale of bonds for new schoolfacility construction, modernization projects, andfacility hardship grants. EXHIBIT C - 91 County SchoolFacilities Fund - 1A accounts for school construction and modernization funds received from proceedsresulting from the passage of Proposition 1A in 1998, as well as for local matching funds. Capital Facilities Account Fund accounts for resources received from developerfees levied upon newresidential, commercial, or industrial development projects within the District’s boundaries. The dollars are used to obtain funds for the construction or acquisition of schoolfacilities to relieve overcrowding. State School Building Lease-Purchase Fund accounts forState apportionments received in accordance with State Education Code §17700-1 7780, primarily forrelief of overcrowding. Special Reserve Funds for Capital Outlay Projects provides for the accumulation of General Fund moneysfor capital outlay purposes (Education Code §42840). Transfers authorized by the governing board mustbe utilized for capital outlay purposes. The District operates four Special Reserve Funds: Special Reserve Fund accounts for District resources designated for capital outlay purposes such as land purchases, ground improvements,facilities construction and improvements, new acquisitions, and related expenditures. Special Reserve Fund —- FEMA ~ Earthquake accounts for funds received from the Federal Emergency Management Agency (FEMA)for capital outlay projects resulting from the January 17, 1994 Northridge Earthquake. Special Reserve Fund ~ FEMA — Hazard Mitigation accounts for funds received from FEMA and for the 25% District matching funds for the retrofit/replacementofpendantlighting and suspendedceilings in selected buildings at schools,offices, and Early Childhood Education Centers. Special Reserve Fund— Community Redevelopment Agency accounts for reimbursements oftax increment revenues from certain community redevelopmentagencies based on agreements between the District and the agencies. The reimbursements are to be used for capital projects within the respective redevelopment areas coveredin the agreements. Debt Service Funds. BondInterest and Redemption Fund accounts forthe paymentofthe principal and interest on Proposition BB, Measure K and Measure R bond issues. Revenuesare derived from ad valorem taxes levied upon all property subject to tax by the District. Tax Override Fund accounts for the accumulation ofresources from ad valorem tax levies for the repaymentof State School Building Aid Fund apportionment. Capital Services Fund accounts for the accumulation ofresources for the repaymentofprincipal andinterest on certificates of participation (COPs) and long-term capital lease agreements. Revenues are derived primarily from operating transfers from user funds and investment income. EXHIBIT C - 92 Internal Service Funds. Health and Welfare Benefits Fundpays for claims, administrative costs, insurance premiums, and related expenditures for the District’s Health and Welfare Benefits program. Medical and dental claimsfor the self-insured portion of the Fund are administered by outside claims administrators. Premium payments to Health Maintenance Organizations for medical benefits and to outside carriers for vision services, dental services, and optional life insurance are also paid outof this Fund. Workers’ Compensation Self-Insurance Fund pays for claims, excess insurance coverage, administrative costs, and related expenditures. An outside claims administrator manages Workers’ Compensationclaims for the District. Liability Self-Insurance Fund paysfor claims, excess insurance coverage, administrative costs and related expenditures, and to provide funds for insurance deductible amounts. An outside claims administrator managesliability claims for the District. Fiduciary Funds. Attendance Incentive Reserve Fund accounts for 50% of the salary savings from substitute teacher accounts resulting from reduced costs of absenteeism ofUTLA-represented employees. The Fund rewards regularattendanceofteachers in orderto improvetheinstructional program. Student Body Fundsaccountfor cash held by the District on behalf of student bodies at various schoolsites. The California School Accounting Manualdoesnot require that Student Body Fund moneys be reported to the California Department of Education as part of the District budget. However, in accordance with The California School Accounting Manual, Student Body Fund informationis includedin the District’s Comprehensive Annual Financial Report. 46 EXHIBIT C - 93 SUPERINTENDENT'S 2013-14 FINAL BUDGET Unconsolidated Summary of Sources and Uses by Type ofFund 2009-10 2010-11 2011-12 = 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Amounts Amounts Amounts Operating Funds Sources of Funds Beginning Balance $916.0 $790.7 $923.9 $853.8 $657.7 $657.7 Revenue $6,911.1 $6,960.0 $6,511.22 $6,274.3 $6,682.2 $6,682.2 Total Sources ofFunds $7,827.1 $7,750.7 $7,435.0 $7,128.1 $7,339.8 $7,339.8 Uses ofFunds Expenditure $7,052.3 $6,830.8 $6,581.5 $6,470.4 $7,090.6 $6,845.3 Ending Balance $774.8 $919.9 $853.6 $657.7 $249.3 $494.5 Total Uses of Funds $7,827.1 $7,750.7 $7,435.0 $7,128.1 $7,339.8 $7,339.8 Capital Funds Sources ofFunds Beginning Balance $1,536.4 $4,161.2 $3,695.0 $2,828.9 $2,411.5 $2,411.5 Revenue $4,681.0 $1,390.8 $1,128.0 $739.7 $830.4 $830.4 Total Sources of Funds —_—‘$6,217.4 $5,552.0 $4,823.1 $3,568.5 $3,241.9 — $3,241.9 Uses of Funds Expenditure $2,056.2 $1,886.4 $1,994.2 $1,157.0 $3,229.5 $2,132.1 Ending Balance $4,161.2 $3,665.6 $2,828.8 $2,411.5 $12.4 $1,109.7 Total Uses ofFunds $6,217.4 $5,552.0 $4,823.1 $3,568.5 $3,241.9 $3,241.9 Debt Service Funds Sources of Funds Beginning Balance $554.8 $703.5 $806.7 $741.3 $762.3 $762.3 Revenue $1,111.7 $987.2 $1,050.7 $970.0 $923.1 $923.1 Total Sources of Funds —_—‘$1,666.4 $1,690.7 $1,857.5 $1,711.3 $1,685.4 — $1,685.4 Uses of Funds Expenditure $963.0 $883.9 $1,107.9 $948.9 $1,629.9 $1,025.9 Ending Balance $703.5 $806.7 $749.6 $762.3 $55.5 $659.5 Total Uses ofFunds $1,666.4 $1,690.7 $1,857.5 $1,711.3 31,685.4 —$1,685.4 Internal Service Funds Sources of Funds Beginning Balance $40.8 $164.8 $250.5 $303.8 $322.5 $322.5 Revenue $1,109.8 $1,017.4 $1,055.4 $1,102.0 $1,076.0 —$1,076.0 Total SourcesofFunds —_$1,150.7 $1,182.2 $1,305.8 $1,405.7 $1,398.5 $1,398.5 Uses of Funds Expenditure $985.9 $931.8 $1,002.1 $1,083.3 $1,075.6 $1,075.6 Ending Balance $164.8 $250.5 $303.8 $322.5 $322.9 $322.9 Total Uses of Funds $1,150.7 $1,182.2 $1,305.8 $1,405.7 $1,398.5 $1,398.5 Fiduciary Funds Sources of Funds Beginning Balance $0.0 $0.4 $0.0 $0.0 $0.0 $0.0 Revenue $0.4 $0.2 $0.0 $0.0 50.0 $0.0 Total Sources of Funds $0.4 $0.6 $0.0 $0.0 $0.0 $0.0 Uses of Funds Expenditure $0.0 $0.6 $0.0 $0.0 $0.0 $0.0 Ending Balance 50.4 $0.0 $0.0 $0.0 $0.0 $0.0 Total Uses of Funds $0.4 $0.6 $0.0 $0.0 $0.0 $0.0 a7 EXHIBIT C - 94 SUPERINTENDENT'S 2013-14 FINAL BUDGET Unconsolidated Summary of Revenues by Fund 2009-10 2010-11 2011-12 2012-13 2013-14 =. 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts in § millions Amounts Amounts Amounts Amounts Amounts Amounts Operating Funds Genera] Fund - Unrestricted (001 &003/010) $3,401.1 $3,481.7 — $3,275.1 $3,3426 $3,3999 $3,439.7 General Fund - Restricted (003/010) $2,873.4 $2,935.7. $2,613.3. ~ $2,392.1 $2,665.1 $2,625.3 Adult Education Fund - Unrestricted (029/110) $170.2 $71.6 $130.6 $62.9 $68.7 $68.7 Adult Education Fund- Restricted (029/110) $35.0 $26.2 $23.0 $27.3 $33.8 $33.8 Child Development Fund - Unrestricted (011/120 $118.6 $130.2 $129.6 $108.6 $134.0 $134.0 Child DevelopmentFund- Restricted (011/120) $9.5 $15.0 $3.6 $3.3 $31.6 $31.6 Cafeteria Fund (030/130) $301.1 $298.9 $336.0 $337.5 $349.1 $349.1 Deferred Maintenance Fund (027/140) $2.1 $0.8 $0.0 $0.0 $0.0 $0.0 Total Operating Funds $6,911.1 $6,960.0 $6,511.2 $6,274.3 — $6,682.2 $6,682.2 Capital Funds Building Fund - Measure R (043/210) $1,108.8 $117.0 $532.0 $60.1 $241.8 $241.8 Building Fund - Proposition BB (045/211) $23.0 $17.2 $24.7 $33.9 $0.1 $0.1 Building Fund (070/212) $0.2 $0.3 $0.4 $0.1 $0.7 $0.7 Building Fund - Measure K (044/213) $372.2 $40.6 $81.2 $98.0 $1.6 $1.6 Building Fund - Measure Y (042/214) $2,716.7 $266.4 $74.4 $109.2 $454.0 $454.0 County Sch Facilities Fund (066/351) $329.4 $805.8 $131.6 $368.6 $39.3 $39.3 Special Reserve Fund - CRA (017/400) $6.2 $5.5 $9.9 $7.8 $7.8 $7.8 Special Reserve Fund (015/401) $101.0 $103.3 $231.7 $17.8 $45.7 $45.7 Special Reserve Fund - FEMA (022/402) $0.0 $0.0 $0.0 $0.0 $6.3 $6.3 Special Resv Fund - FEMA- Haz Mit (062/403) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Capital Facilities Acct Fund (073/250) $20.2 $33.3 $41.6 $43.3 $33.2 $33.2 State Sch Bldg Lease/Purch Fund (074/300) $3.4 $1.5 $0.6 $1.0 $0.0 $0.0 Total Capital Funds $4,681.0 $1,390.8 — $1,128.0 $739.7 $830.4 $830.4 Debt Service Funds BondInterest & Redemption Fund (004/510) $987.4 $939.7 $827.0 $928.0 $875.7 $875.7 Tax Override Fund (005/530) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Capital Services Fund (071/560) $1243 $47.6 $223.8 342.0 $47.4 $47.4 Total Debt Service Funds S1,111.7 $987.2 $1,050.7 $970.0 $923.1] $923.1 Internal Service Funds Health & Welfare Benefits Fund (021/670) $953.2 $951.8 $942.8 $927.9 $952.9 $952.9 Worker's Compensation Fund (013/671) $116.2 $53.6 $82.2 $106.3 $101.9 $101.9 Liability Self-Insurance Fund (016/672) $40.4 $12.0 $30.3 $67.8 $21.2 $21.2 Total Internal Service Funds $1,109.8 $1,017.4 $1,055.4 $1,102.0 $1,076.0 $1,076.0 Fiduciary Funds Attendance Incentive Reserve Fund (046/710) $0.4 $0.2 $0.0 $0.0 $0.0 $0.0 Annuity Reserve Fund (023/711) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Fiduciary Funds $0.4 $0.2 $0.0 $0.0 $0.0 $0.0 Total All Funds $13,814.0 $10,355.7 $9,745.3 $9,086.0 $9,511.6 $9,511.6 48 EXHIBIT C - 95 SUPERINTENDENT'S 2013-14 FINAL BUDGET Unconsolidated Summary of Expenditures by Fund 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts in $ millions Amounts Amounts Amounts Amounts Amounts Amounts Operating Funds General Fund- Unrestricted (001 &003/010) $3,289.9 $3,216.5 $3,274.2 $3,479.4 —-$3,664.6 $3,537.9 General Fund - Restricted (003/010) $3,087.6 $2,964.3 — $2,693.1 $2,441.4 $2,8023 $2,683.8 Adult Education Fund - Unrestricted (029/110) $144.1 $134.7 $128.7 $63.7 $73.5 $73.5 Adult Education Fund - Restricted (029/110) $24.9 $28.5 $26.4 $31.7 $33.8 $33.8 Child Development Fund - Unrestricted (011/120 $121.3 $130.1 $129.6 3108.6 $134.1 $134.1 Child DevelopmentFund - Restricted (011/120) $9.9 $15.0 $3.6 $3.0 $31.9 $31.9 Cafeteria Fund (030/130) $302.0 $295.3 $325.9 $342.6 $350.4 $350.4 Deferred Maintenance Fund (027/140) $72.6 $46.4 $0.0 $0.0 $0.0 $0.0 Total Operating Funds $7,052.3 $6,830.8 $6,581.5 $6,470.4 $7,090.6 $6,845.3 Capital Funds Building Fund - Measure R (043/210) $596.2 $255.2 $316.0 $255.2 $1,014.6 $614.2 Building Fund - Proposition BB (045/211) $64.3 $28.5 $27.1 $30.9 $21.1 $21.1 Building Fund (070/212) $0.7 $0.3 $0.7 $0.1 $2.1 $2.1 Building Fund - Measure K (044/213) $216.4 $124.4 $86.8 $66.0 $306.9 3194.5 Building Fund - Measure Y (042/214) $584.2 $725.7 $996.1 $317.3 $1,089.2 $642.5 County Sch Facilities Fund (066/351) $362.5 $605.9 $339.1 $379.3 $533.6 $456.1 Special Reserve Fund - CRA (017/400) $4.8 $5.1 $0.9 $20.5 $14.8 $14.8 Special Reserve Fund (015/401) $184.4 $83.0 $211.9 $62.3 $138.7 $109.3 Special Reserve Fund - FEMA (022/402) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Special Resv Fund - FEMA- Haz Mit (062/403) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Capital Facilities Acct Fund (073/250) $42.3 $58.2 $15.1 $25.3 $103.3 $72.3 State Sch Bldg Lease/Purch Fund (074/300) $0.4 $0.2 $0.6 $0.2 $5.1 $5.1 Total Capital Funds $2,056.2 $1,886.4 $1,994.2 $1,157.0 $3,229.5 $2,132.1 Debt Service Funds BondInterest & Redemption Fund (004/510) $845.9 $845.9 $861.7 $902.0 $1,583.3 $979.3 Tax Override Fund (005/530) $0.0 $0.0 $0.0 $0.0 $0.3 $0.3 Capital Services Fund (071/560) $117.0 $38.1 $246.2 $47.0 $46.3 346.3 Total Debt Service Funds $963.0 $883.9 — $1,107.9 $948.9 $1,629.9 $1,025.9 Internal Service Funds Health & Welfare Benefits Fund (02 1/670) $866.3 $836.4 $856.6 $908.0 $952.7 $952.7 Worker's Compensation Fund (013/671) $78.7 $82.9 $1148 $107.1 $101.8 $101.8 Liability Self-Insurance Fund (016/672) $40.8 $12.4 $30.7 $68.2 $21.2 $21.2 Total Internal Service Funds $985.9 $931.8 $1,002.1 $1,083.3 $1,075.6 $1,075.6 Fiduciary Funds AttendanceIncentive Reserve Fund (046/710) $0.0 $0.6 $0.0 $0.0 $0.0 $0.0 Annuity Reserve Fund (023/711) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Fiduciary Funds $0.0 $0.6 $0.0 $0.0 $0.0 $0.0 Total All Funds $11,057.4 $10,533.5 $10,685.7 $9,659.6 $13,025.6 $11,079.0 49 EXHIBIT C - 96 (THIS PAGE INTENTIONALLY LEFT BLANK) EXHIBIT C - 97 General Fund Unrestricted & Restricted Revenues The 2013-14 General Fundis estimated at $6.1 billion. * The Govemor’s proposed a new education funding model - Local Control Funding Formula (LCFF)is reflected in the 2013-14 through 2015-16 estimated revenues. The difference between the existing revenue limit and Tier III formulas and the LCFFis includedin the revenue limit portion of the display. The revenue estimatedused the MayRevision LCFFfundingof$1.84 billion state-wide. © Theestimated revenue doesnottake into account any compromised LCFF announced in June 2013. 54 EXHIBIT C - 98 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $2,000 so 2009-10 otherLocal Revenues Actual and Estimated Revenues GeneralFund Unrestricted & Restricted (Excluding Other Financing Sources) 2010-11 oie ‘Gedeal Revenues 2mi213 mower state Revenues 2oss-ia zouast —2ns-15* reverseWnt Sources 2008-10 20t0-11 2017-42 2072-13 201914" 2014-15" 2015-16" Actual Actual Actual Estimated Estimated Estimstod Estimated Amounts Amounts Amounts Amounts _Amoupts Amounts Amounts RevenueLimit Sources $20772 $3.0564 §29082 §29207 $30559 830385 sa0i91 Federal Revenues $084.0 1.0605 $8680 SNES $7782 S715 SENT. Other State Revenues 821584 $2.051.8 $1,0035 $2.0141 $2,195 $1.9794 81,8219 Other Local Revenues $08.1 $1716 $199.1 Grza0 $1413 $435 saz ‘Subtotal 36,2087 $0,203 $5,0787 $5,605.1 $6,042.8 _$5.8629 $5.681.0 ‘Other Finanging Sources, $05.9 $012 a8 SS SPITS 362 Total Estimated Revenues 86.2745 $6.417.4 _$5,0884 $5,747 $60850 $5,876.3 §5.687.2 Note: Totals may not be exactly equal because of rounding “includes Local Control Funding Formula EXHIBIT C - 99 SUPERINTENDENT'S 2013-14 FINAL BUDGET Unconsolidated Revenue Budget General Fund Unrestricted by Source 2009-10 2010-11 2011-12 2012-13 2013-14 Actual Actual Actual 3rd Interim —_Estimated Amounts in §$ million Amounts Amounts Amounts Amounts Amounts UNRESTRICTED PROGRAMS Federal Revenues Medicare Part D Subsidy $12.6 $11.0 $9.8 $9.2 $9.2 Medi-Cal Admin Activity $2.7 $7.6 $5.4 $7.9 $8.0 All Other Federal Revenues $3.3 $3.5 $5.1 $3.6 $3.7 Total Federal Revenues $18.5 $22.0 $20.2 $20.8 $20.9 State Revenues K-12 Revenue Limit (State Portion) $1,949.4 — $2,092.8 $2,034.1 $1,986.0 $2,127.4 Education Protection Act $0.0 $0.0 $0.0 $0.0 $0.0 Aduit Education Fund Entitlement $168.3 $97.2 $35.4 $163.2 $165.8 Targeted Instrucl Improv Grant (AB825) $459.0 $460.6 $459.5 $460.4 $467.6 Class Size Reduction (K-3) $160.2 $155.5 $151.2 $147.6 $151.2 CalifomiaState Lottery $76.9 $78.1 $82.3 $85.8 $79.1 CommonCore State Standards $0.0 $0.0 $0.0 $0.0 $0.0 ROC/Skills Center Entitlement $60.8 $55.7 $55.4 $55.8 $56.5 Supplemental Hourly Program $59.2 $57.4 $57.4 $57.4 $58.3 School/Library Improvement Block Grant $43.6 $43.6 $43.6 $43.6 $44.2 Instructional Materials Block Grant, incl. Williams $35.6 $35.5 $35.5 $35.5 $36.0 Year-Round Schoo! Operational Grants $42.6 $28.5 $14.2 $0.0 $0.0 Deferred Maintenace Funding $26.0 $26.1 $26.0 $25.9 $26.4 ProfDev Block Grant AB825 & Instr Buyout $23.2 $23.2 $23.2 $23.2 $23.6 School Counselors Grades 7 - 12 $18.2 $16.7 $16.7 $16.7 $16.9 Class Size Reduction (9) $12.7 $12.3 $12.3 $12.3 $12.5 Arts & Music Block Grant $8.8 $8.8 $8.7 $8.7 $8.9 School Safety & Violence Prevention Program $9.9 $7.7 $7.7 $7.7 $7.8 CAHSEE Intensive Instructional Services $6.1 36.1 $6.1 $6.1 $6.2 Mandated Cost Reimbursement $3.0 $21.3 $0.0 $15.2 $24.5 Staff Develoment - Reading / Math $6.3 $5.4 $5.4 $5.4 $5.4 Gifted and Talented Students $4.5 $4.5 $4.5 $4.5 $4.6 Pupil Retention Block Grant AB825 $4.3 $4.3 $4.3 $4.3 $4.3 Charter Categorical Block Grant $3.6 $3.8 $6.3 $14.5 $14.7 Pupil Assessment $2.3 $1.2 $3.5 $3.9 $3.9 Califomia Peer Assistance & Review Program $2.6 $2.6 $2.6 $2.6 $2.6 All Other State Revenue, inc remaining Gov Props $27.8 $14.4 $23.7 $21.8 $21.1 Total State Revenues $3,214.9 _$3,263.1 $3,119.95 $3,207.9 —-$3,369.8 Local Revenues K-12 Revenue Limit (Local portion) $856.4 $793.2 $764.8 $769.1 $758.2 Interest $20.7 $19.3 $16.5 $18.9 $15.9 E-Rate Reimbursement $13.9 $18.1 $15.7 $18.0 $18.3 Donations $9.5 $10.0 $12.8 $9.1 $13.0 Chanter - Fee for Service $21.9 $12.6 $14.0 $10.8 $9.0 All Other Local Revenue $30.9 $52.7 $55.2 $43.9 $45.2 Total Local Revenues $953.3 $905.8 $879.0 $869.9 $859.6 Other Financing Sources Interfund Transfers $16.4 $28.6 $0.8 $12.2 $21.4 Insurance Proceeds $2.1 $2.0 $3.2 $15.2 $0.8 Long Tem Debt Proceeds Capital Leases $0.9 $1.0 $0.9 $0.9 $0.0 Contributions to Restricted Programs -$805.0 -$740.9 -$748.6 — -$784.2 -$832.8 Total Other Financing Sources -$785.6 -$709.2 $743.6 -$756.0 -$8 10.6 Total Unrestricted Resources $3,401. $3,481.7 — $3,275.1 $3,342.6 $3,439.7 53 EXHIBIT C - 100 SUPERINTENDENT'S 2013-14 FINAL BUDGET Unconsolidated Revenue Budget General Fund-Restricted by Source 200%10 «2010-11 =2021-12 2012-13. 2013-14 Actual —Actual Actual 3rd Interim Estimated t A A A A E Amounts in $millions Sacs Resource Sacs Resource Name Federal Revenues 3010 NCLB:Title !, Part A, Basic Grants Low-income and Neglected $376.1 $403.0 $387.2 $305.1 $306.5 3310 Sp Ed: IDEA Basic Local Assist Entitlement, Part B, Sec 611 (formerly PL 94-142) $122.9 $120.3 $115.7 $105.9 $132.8 4035 NCLB:Title I, Part A, Teacher Quality $55.6 $51.5 $48.5 $51.8 $478 4203 NCLB:Title tH, Limited English Proficient (LEP) Student Program $27.2 $33.6 $23.8 $19.5 $22.7 5640 Medi-Cal Billing Option $20.9 $20.3 $16.0 $12.0 $12.0 4124 NCLB:Title 1V, Part B, 21st Century Community Learning Centers Program $22.5 $19.0 $20.5 $16.1 $14.4 3320 Special Ed: IDEA Preschool Local Entitlement, Part B, Sec 611 S117 $9.3 $10.9 $12.0 $12.8 318t NCLB: ARRA Title 1, School Improvement Grant $0.0 $7.3 $14.4 $13.0 $9.2 3180 NCLB:Title I, School ImprovementGrant $1.7 $36.7 $1.3 $17.0 $8.6 3327 Special Ed: IDEA Mental Health P-B611 $0.0 $0.0 34.7 $5.3 $7.0 3550 Cari D. Perkins Career and Technical Education: Secondary, Section 131 $6.4 $6.4 $5.6 $6.1 $5.7 3315 Special Ed: IDEA Preschool Grants, Part B, Sec 619 $5.2 $5.0 $4.8 $5.1 $6.0 3311 Special Ed: IDEA LocalAssistance, Part B, Sec 61), Private School ISPs $0.8 $1.1 $1.3 $1.2 $0.0 3385 Special Ed: IDEA Early Intervention Grants $1.2 $1.2 $t2 $12 $1.2 3025 NCLB:Title 1, Part D, Local Delinquent Programs $0.8 $0.3 $1.7 $1.1 $1.0 3410 Department of Rehab: Workabitity 11, Transition Partnership $1.1 $1.2 $12 S14 $0.9 3060 NCLB:Title 1, Part C, Migrant Ed (Regular and Summer Program) $0.9 $1.0 $I. $1.) $1.2 4810 Other ARRA Programs $0.2 $0.6 $1.6 $2.2 $0.6 5610 Workforce Investment Act (WIA) From Other Agencies (LWIB) $1.0 $0.9 $0.9 $1.) $0.1 4050 NCLB:Title Il, Part B, CA Mathematics and Science Partnerships $1.4 $1.4 $0.8 $0.4 $0.0 3316 Special Ed: IDEA Preschool Accountability Grants, Part B, Sec 619 $0.0 $0.2 $0.2 $0.2 $0.0 5652 FEMAHazard Mitigation Grant $0.0 $0.4 $1.2 $0.1 $0.0 4510 Indian Education $0.2 $0.2 $0.2 $0.2 $0.0 3345 Special Ed: IDEA Preschool Staff Development, Part B, Sec 619 $0.0 $0.0 $0.1 $0.1 $0.0 3011 NCLB: ARRA Title |, Part A, Basic Grants Low Incomeand Neglected $108.7 $202.4 $12.6 $0.0 $0.0 3026 NCLB: ARRA Title 1, Part D, Local Delinquent Programs $0.2 $0.3 $0.3 $0.0 $0.0 3030 NCLB:Title I, Part B, Reading First Program $1.5 $3.1 $0.7 $0.0 $0.0 3031 NCLB:Title I, Part B, Reading First, Sp Educ Teacher Prof Dev't Pilot Prog $2.5 $1.0 $0.0 $0.0 $0.0 3185 NCLB:Title [, Part A, Program Improvement LEA Corrective Action Resources $5.5 $0.0 $0.0 $0.0 $0.0 3200 ARRA:State Fiscal Stabilization Fund $49.7 $28.4 $0.0 $0.0 $0.0 3205 ARRA Education Jobs Fund SB847 $0.0 $0.0 $il4i $0.0 $0.0 3313 Special Ed: ARRA IDEAPart B, Sec 611, Basic Local Assistance $75.1 $42.5 $15.8 $0.0 $0.0 3314 Special Ed: ARRA [DEAPart B, Sec 611, Local Assistance Private School ISPs $0.0 $1.0 $0.0 $0.0 $0.0 3319 Special Ed: ARRA IDEAPart B, Sec 619, Preschool Grants $0.8 $3.5 $0.6 $0.0 $0.0 3324 Special Ed: ARRA IDEAPart B, Sec 611, Preschool Local Entitlement $73 $4.5 $0.9 $0.0 $0.0 3710 NCLB:Title IV, Part A, Drug-Free Schools $5.0 $1.3 $0.1 $0.0 $0.0 4045 NCLB:Title I, Part D, Enhancing Educ Through Technology, Formula Grants $5.4 $2.6 $2.2 $0.0 $0.0 4046 NCLB:Title II, Part D, Enhancing Educ Through Technology, Competitive Grants $1.9 $0.6 $0.3 $0.0 $0.0 4047 NCLB: ARRA Title Lf, Part D, Enhancing Education Through Technology $0.0 $3.0 $4.7 $0.0 $0.0 4048 NCLB: ARRA Title I, Part D, Enhancing Ed Through Tech, Competitive Grants $0.0 $0.6 $2.4 $0.0 $0.0 4110 NCLB:Title V, Part A, Innovative Education Strategies (09-10) $0.6 $0.0 $0.0 $0.0 $0.0 4230 Bilingual Education: Discretionary Grants, Title I!! $02 $0.1 $0.0 $0.0 $0.0 4610 NCLB:Title V, Part B, Public Charter Schools Grants $0.3 $0.t $0.0 $0.0 $0.0 5314 Child Nutrition: EquipmentAssistance Grants $0.0 $0.5 $0.0 $0.0 $0.0 5380 Child Nuwrition: School Breakfast Startup $0.2 $0.0 $0.0 $0.0 $0.0 5575 CalServe: Learn & Serve America $0.1 $0.0 $0.0 $0.0 $0.0 5630 NCLB:Title X McKinney-Vento Homeless Assistance Grants $0.2 $0.1 $0.f $0.2 $0.0 5635 NCLB: ARRA Title X McKinney-Vento Homeless Assistance $0.3 $0.4 $0.0 $0.0 $0.0 5650 FEMA Public Assistance Funds $0.) $0.0 $0.0 $0.0 $0.0 5810 Other Restricted Federal $26.2 $26.9 $26.2 $34.3 $113.9 Total Federal Revenues $949.5 _$1,043.4 $846.3 $613.6 $704.6 State Revenues 6500 Special Education $1,205.5 $565.3 $512.3 $506.5 $510.9 7810 Other Restricted State $1.2 $1.5 $0.8 $0.9 SIILO 8150 Ongoing & Major Maintenance Account (RMA; Education Code Section 17070.75) $132.9 $0.0 $0.0 $0.0 $0.0 7091 Economic Impact Aid: Limited English Proficiency (LEP) $120.6 = $117.7 $102.5 3124.4 $95.1 6010 After Schoo! Education and Safety (ASES) $70.6 $72.3 $73.8 $72.7 $75.4 7400 Quality Education Investment Act $138.0 $129.0 SIL $81.0 $71.2 7240 Transportation: Special Education (S ty Disabled/Orthopedically Impaired) $55.2 $40.3 $413 $41.2 $41.8 7230 Transportation: Home to School $46.4 $35.6 $36.5 $36.4 $36.9 6512 Special Ed: Mental Health Services $0.0 50.0 $26.0 $35.8 $36.0 2200 Continuation Education (Education Code sections 42244 and 48438) $26.8 $17.7 $25.1 $19.4 $20.5 54 EXHIBIT C - 101 SUPERINTENDENT'S 2013-14 FINAL BUDGET Unconsolidated Revenue BudgetGeneral Fund-Restricted by Source 2009-10 2010-11 =2019-12 2012-93). 2013-14 Actual Actual Actual 3rd Interim Estimated A A A Esti A Amounts in $millions Sacs Resource Sacs Resource Name 7090 Economic Impact Aid (ELA) $19.0 $18.4 $26.6 $0.7 $20.0 6300 Lottery: Instructional Materials $13.0 $12.4 $19.3 $23.8 $19.1 6510 Special Ed: Early'Ed Individuals with Exceptional Needs (Infant Program) $0.0 $3.0 $3.0 $3.0 $3.0 6360 Pupils with Disabilities Attending ROC/P 32.0 $1.7 $1.8 $0.9 $2.4 7220 Partnership Academies Program $2.2 $2.1 $2.4 $2.9 $1.5 6690 Tobacco-Use Prevention Education: Grade School $0.0 $0.0 $0.0 $0.7 $1.3 6385 Governor's CTEInitiative: Califormia Partmership Academies $1.6 $1.4 $1.8 $1.6 Sit 6240 Healthy Start: Planning Grants and Operational Grants $0.2 $0.2 $0.3 $0.2 $0.2 6355 ROCP:Training & Certification for Community Care (Dept Develop Service) $0.3 $0.3 $0.3 $0.3 $0.2 6386 California Parmership Academies: Green and Clean Academies $0.2 $0.4 $0.4 $0.6 $0.0 6530 Special Ed: Low Incidence Entidement $0.1 $0.1 $0.1 $0.1 $0.0 6515 Special Ed: Infant Discretionary Funds $0.0 $0.0 $0.1 $0.1 $0.0 2430 Community Day Schools $13.3 $5.5 $0.1 $0.3 $0.0 6020 CSIS: California School Information Service $0.0 $5.2 $0.2 $0.0 $0.0 6225 Emergency Repair Program, Williams Case $IL9 $0.0 $0.0 $0.0 $0.0 6250 Early Mental Health Initiative (EMHI) (Department of Mental Health) $0.1 $0.2 $0.2 $0.0 $0.0 6286 English Language Acquisition Program, Teacher Training & Student Assistance $13.7 $0.0 $0.0 $0.0 $0.0 6378 California Health Science Capacity Building Project $0.0 $0.0 $0.1 $0.0 $0.0 6520 Special Ed: Project Workabitity 1] LEA $0.6 $0.7 $0.7 $0.7 $0.0 6535 Special Ed: Personnel Staff Development $0.2 $0.3 $0.4 $0.2 $0.0 6660 Tobacco-Use Prevention Education: Elementary Grades 4-8 (09-10) $0.2 $0.1 $0.0 $0.0 $0.0 6670 Tobacco-Use Prevention Education: High School $0.5 $0.8 $0.1 $0.0 $0.0 Total State Revenues $1,876.7 $1,032.1 $987.8 $954.6 $1,047.7 Local Revenues 59010 Other Restricted Local $55.7 $119.4 $30.6 $35.7 $40.2 Total Local Revenues $55.7 $119.4 $30.6 $35.7 $40.2 Transfers to Unrestricted Programs $8.3 $740.9 $748.6 $788.3 = $832.8 Total Restricted Resources $2,873.5__$2,935.8 $2,613.3 $2,392.1 $2,625.3 * Program Tier Ul Categorical, per SBX3 4, are Unrestricted starting FY 2009-10 55 EXHIBIT C - 102 (THIS PAGE INTENTIONALLY LEFT BLANK) 56 EXHIBIT C - 103 General Fund Unrestricted and Restricted Estimated Expenditures by Object The accompanying graph shows General Fundestimated expenditures by “object of expenditure.” Objects of expenditure define what we buy with our resources. ¢ “Certificated Salaries” include the salaries of teachers, librarians, counselors, nurses, school, and District administrators. ° “Classified Salaries”includethe salaries ofinstructional aides, office employees, custodians, carpenters, plumbers,bus drivers, and those non-certificated employees who manage and supervise their work. e “Employee Benefits” includethe cost of retirement plans, employeehealth insurance, and Workers’ Compensation Insurance. * “Books and Supplies”includes the cost of textbooks, instructional materials, general supplies and fuel. e “Other Operating Expense”includes the cost of contracts,utilities, rents and leases, travel expense, and instructional consultants. e “Capital Outlay” includes thecost of facilities (land and buildings), books and media for libraries, and equipment. Mostofthe District’s capital outlay costs are in bond funds devoted specifically to school construction and modernization. ¢ “Other Outgo”includes miscellaneous itemsthat are not usually considered part of the current expense of education. 57 EXHIBIT C - 104 2013-14 General Fund Estimated Expenditure Budget by Major Object {Amounts in millions and percentoftolal} Employee Benefits, 81,9742, 22% Instructional Books ‘and Supplies, Other Outyo, $504.7, BY $198.1, 3 Capital Outlay, Classified Sataries, $20.6, 0% $004.4, 13% Other Operating Expenses, $729.6, 12% Certifleated Salaries, $2,582.2, 42% TOTAL= §$ 6,221.7 Note: fndividual amounts may not add to total duo fo rounding. 8 EXHIBIT C - 105 General Fund Unrestricted Estimated Expenditure Budget by Major Object {Amounts in millions and percentoftatal} Employee Banefits, $881.3, 24% - Instructional Books and Supplies, $91.4, 2% Other Quigo, $127.8, 4%. Classified Salaries, Capital Outay, SAZ1.1, 12% 526.5, 1% Other Operating Expenses, $2158, 8% Certifcated Salaries, $1,794.0, 51% TOTAL= §$ 3,537.9 Note: individual amounts may not add to total due to rounding. 39 EXHIBITC - 106 General Fund Restricted Estimated Expenditure Budget by Major Object {Amounts in millions and percent of total) EmployeeBenefits, Instructional Books $512.9, 19%, ‘and Supplies, $419.3, 16% Other Ou'go, $68.3, 3% Capital Outlay, $4.4, 0% Classified Satarles, $303.3, 14% Other Operating Expenses, $513.8, 18% Certificated Salaries, $788.1, 20% TOTAL= §$ 2,683.8 Note: individual amounts may not add fo totat due fo rounding, EXHIBIT C - 107 SUPERINTENDENT’S 2013-14 FINAL BUDGET General Fund Unrestricted & Restricted Multi-Year Projection AB1200 (Chapter 1213/1991) and AB2756 (Chapter 52/2004) were enacted in response to a number ofnear bankruptcies, an increase in requests for state emergency loans, and a number of schoo!districts going into financial distress. As a result, districts are required to submit a Multi-Year Projection (MYP)ofthe General Fund that includes the currentfiscal year and two subsequentfiscal years. These are taken into accountby the county as part ofits fiscal solvency review process. The projections in the MYP are calculated based on a given set of assumptionsandare expected to changeas various factors change. The assumptionsused arelisted in the Budget Assumptions and Policies pages, found in Attachment A of the Board Report. 61 EXHIBIT C - 108 EXHIBIT C - 109 Mu lt i- Ye ar Pr oj ec ti on G e n e r a l F u n d Un re st ri ct ed /R es tr ic te d 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 2 0 1 5 - 1 6 A c t u a l A c t u a l Ac tu al ] E s t i m a t e d E s t i m a t e d E s t i m a t e d E s t i m a t e d A m o u n t s A m o u n t s A m o u n t s A m o u n t s A m o u n t s A m o u n t s A m o u n t s B e g i n n i n g B a l a n c e $ 7 5 0 . 0 $6 62 .9 $ 9 0 3 . 5 $ 8 2 4 . 8 $ 6 3 8 . 7 $ 4 8 2 . 0 $ 2 7 1 . 5 R e v e n u e s a n d O t h e r F i n a n c i n g S o u r c e s R e v e n u e Li mi t S o u r c e s 8 0 1 0 - 8 0 9 9 $2 ,9 77 .2 $3 ,0 56 .4 $2 ,9 68 .2 $2 ,9 20 .7 $3 ,0 55 .9 $3 ,0 38 .5 $3 ,0 19 .1 Fe de ra l R e v e n u e s 8 1 0 0 - 8 2 9 9 $ 9 6 4 . 0 $1 ,0 66 .5 $ 8 6 8 . 0 $ 6 3 6 . 3 $ 7 2 6 . 2 $ 7 0 1 . 5 $6 97 .1 O t h e r St at e R e v e n u e s 8 3 0 0 - 8 5 9 9 $2 ,1 59 .4 $2 ,0 31 .8 $1 ,9 03 .5 $2 ,0 14 .1 $2 ,1 19 .5 $1 ,9 79 .4 $1 ,8 21 .9 O t h e r Lo ca l R e v e n u e s 8 6 0 0 - 8 7 9 9 $1 08 .1 $ 1 7 1 . 6 $1 39 .1 $ 1 2 4 . 0 $ 1 4 1 . 3 $ 1 4 3 . 5 $ 1 4 2 . 8 Ot he r F i n a n c i n g S o u r c e s Tr an sf er s In 8 9 0 0 - 8 9 2 9 $6 2. 9 $8 8. 1 $5 .5 $2 3. 5 $2 1. 4 $6 .2 $6 .2 O t h e r S o u r c e s 8 9 3 0 - 8 9 7 9 $3 .0 $3 .0 $4 .2 $1 6. 1 $0 .8 $7 .7 $0 .0 Co nt ri bu ti on to Re st ri ct ed P r o g r a m s 8 9 8 0 - 8 9 9 9 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 To ta l R e v e n u e s a n d O t h e r F i n a n c i n g S o u r c e s $6 ,2 74 .5 $6 ,4 17 .4 $5 ,8 88 .4 $5 ,7 34 .7 $6 ,0 65 .0 $5 ,8 76 .8 $5 ,6 87 .2 To ta l S o u r c e s o f F u n d s $7 ,0 24 .5 $7 ,0 80 .3 $6 ,7 91 .9 $6 ,5 59 .5 $6 ,7 03 .7 $6 ,3 58 .8 $5 ,9 58 .7 E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s Ce rt if ic at ed Sa la ri es 10 00 -1 99 9 $2 ,8 07 .9 $2 ,8 13 .1 $2 ,6 81 .6 $2 ,6 05 .0 $2 ,5 82 ,2 $2 ,5 94 .7 $2 ,5 62 .5 C l a s s i f i e d S a l a r i e s 2 0 0 0 - 2 9 9 9 $ 9 0 8 . 1 $ 8 5 4 . 2 $ 8 1 9 . 2 $ 7 9 8 . 0 $ 8 0 4 . 4 $ 8 1 8 . 1 $ 8 1 5 . 4 E m p l o y e e B e n e f i t s 3 0 0 0 - 3 9 9 9 $ 1 , 4 0 7 . 4 $ 1 , 3 3 8 . 6 $ 1 , 3 6 5 . 8 $ 1 , 3 5 5 . 4 $ 1 , 3 7 4 . 2 $ 1 , 4 1 4 . 3 $ 1 , 4 2 4 . 7 Bo ok s & Su pp li es 40 00 -4 99 9 $2 60 .1 $3 53 .4 $2 31 .1 $2 03 .9 $5 04 .7 $2 99 .4 $2 97 .0 Se rv ic es , O t h e r Op er at in g E x p e n s e s 5 0 0 0 - 5 9 9 9 $7 60 .7 $ 6 8 1 . 4 $ 6 9 8 . 0 $7 78 .2 $7 29 .6 $ 7 4 1 . 9 $ 7 5 2 . 4 Ca pi ta l Ou tl ay 60 00 -6 99 9 $1 8. 2 $7 1. 6 $4 3. 6 $2 2. 4 $3 0. 6 $1 9. 0 $1 1. 3 Ot he r Ou tg o 71 00 -7 29 9 $0 .6 $0 .2 $1 .2 $1 .2 $1 .2 $1 .2 $1 .2 Ot he r Ou tg o 74 00 -7 49 9 $1 .7 $1 .7 $1 .3 $1 .1 $1 .1 $1 .1 $1 .1 Di re ct Su pp or t/ in di re ct Co st s 7 3 0 0 - 7 3 9 9 -$ 11 .6 -$ 9. 2 -$ 27 .4 $ 1 2 . 7 -$ 15 .1 -$ 16 .1 -$ 16 .2 Ot he r Fi na nc in gU s e s 76 10 -7 69 9 $2 24 .4 $7 5. 8 $1 52 .8 $1 68 .3 $2 08 .9 $2 13 .7 $2 11 .2 To ta l E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s $6 ,3 77 .5 $6 ,1 80 .8 $5 ,9 67 .3 $5 ,9 20 .8 $6 ,2 21 .7 $6 ,0 87 .4 $6 ,0 60 .8 E n d i n g F u n d B a l a n c e : $ 6 4 6 . 9 $ 8 9 9 . 6 $ 8 2 4 . 6 $ 6 3 8 . 7 $ 4 8 2 . 0 $ 2 7 1 . 5 - $ 1 0 2 . 1 T o t a l U s e s o f F u n d s $ 7 , 0 2 4 . 5 $ 7 , 0 8 0 . 3 $ 6 , 7 9 1 . 9 $ 6 , 5 5 9 . 5 $ 6 , 7 0 3 . 7 $ 6 , 3 5 8 . 8 $ 5 , 9 5 8 . 7 C h a n g e in F u n d B a l a n c e -$ 10 3. 0 $ 2 3 6 . 7 -$ 78 .9 -$ 18 6. 1 $ 1 5 6 . 7 -$ 21 0. 5 $ 3 7 3 . 5 C o m p o n e n t s of E n d i n g B a l a n c e : N o n Sp en da bi e- In ve nt or ie s/ Ca sh /O th er s $1 0. 8 $1 0. 4 $1 1. 2 $1 1. 2 $1 1. 2 $1 1. 2 $1 1. 2 Re st ri ct ed E n d i n g B a l a n c e s $ 2 7 8 . 0 $2 66 .4 $ 1 8 6 . 6 $ 1 3 7 . 3 $7 8. 8 $7 2. 1 $7 5. 8 A s s i g n e d E n d i n g B a l a n c e s O t h e r De si gn at io ns /C ar ry ov er s $1 73 .2 $ 1 4 7 . 0 $ 1 6 2 . 2 $ 1 7 7 . 0 $ 2 4 7 . 5 $ 3 3 0 . 6 $4 52 .1 R e s e r v e fo r R e v e n u e Un ce rt ai nt ie s $0 .0 $0 .0 $3 03 .1 $ 2 0 2 . 0 $3 2. 5 $6 5. 0 $9 7. 5 U n a s s i g n e d E n d i n g B a l a n c e s R e s e r v e fo r E c o n o m i c Un ce rt ai nt ie s $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 U n d e s i g n a t e d / U n a s s i g n e d E n d i n g B a l a n c e s $1 19 .5 $ 4 1 0 . 3 $9 6. 2 $4 5. 8 $4 6. 7 -$ 27 2. 8 -$ 80 4. 0 To ta l E n d i n g B a l a n c e $ 6 4 6 . 9 $ 8 9 9 . 6 $ 8 2 4 . 6 $ 6 3 8 . 7 $ 4 8 2 . 0 $ 2 7 1 . 5 -$ 10 2. 1 6 2 St ar ti ng 20 09 -1 0, Ti er ill Ca te go ri ca l Pr og ra ms a r e re po rt ed as un re st ri ct ed pe r S B X 3 4. 6/ 10 /2 01 3 EXHIBIT C - 110 Mu lt i- Ye ar Pr oj ec ti on G e n e r a l F u n d U n r e s t r i c t e d 2 0 0 9 - 1 0 20 10 -1 1 20 11 -1 2 20 12 -1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 2 0 1 5 - 1 6 Ac tu al Ac tu al Ac tu al E s t i m a t e d E s t i m a t e d E s t i m a t e d E s t i m a t e d A m o u n t s A m o u n t s A m o u n t s A m o u n t s A m o u n t s A m o u n t s A m o u n t s B e g i n n i n g B a l a n c e $2 63 .4 $3 66 .9 $6 36 .1 $6 37 .2 $5 00 .4 $4 02 .2 $1 98 .4 R e v e n u e s a n d O t h e r F i n a n c i n g S o u r c e s R e v e n u e Li mi t S o u r c e s 8 0 1 0 - 8 0 9 9 $2 ,8 05 .8 $2 ,8 86 .0 $2 ,7 98 .9 $2 ,7 55 .1 $2 ,8 85 .5 $2 ,8 61 .9 $2 ,8 42 .2 Fe de ra l R e v e n u e s 8 1 0 0 - 8 2 9 9 $1 8. 5 $2 2. 0 $2 0. 2 $2 0. 8 $2 0. 9 $2 0. 9 $2 1. 0 Ot he r St at e R e v e n u e s 8 3 0 0 - 8 5 9 9 $1 ,2 62 .1 $1 ,1 69 .9 $1 ,0 85 .4 $1 ,2 25 .4 $1 ,2 42 .4 $1 ,2 60 .4 $1 ,1 02 .9 Ot he r Lo ca l R e v e n u e s 8 6 0 0 - 8 7 9 9 $9 6. 9 $1 12 .7 $1 14 .3 $1 00 .8 $1 01 .4 $1 05 .7 $1 07 .9 Ot he r Fi na nc in g S o u r c e s Tr an sf er s In 8 9 0 0 - 8 9 2 9 $1 6. 4 $2 8. 6 $0 .8 $1 2. 2 $2 1. 4 $6 .2 $6 .2 O t h e r S o u r c e s 8 9 3 0 - 8 9 7 9 $ 3 . 0 $ 3 . 0 $ 4 . 2 $ 1 6 . 1 $ 0 . 8 $ 7 . 7 $ 0 . 0 Co nt ri bu ti on to Re st ri ct ed Pr og ra ms 8 9 8 0 - 8 9 9 9 $8 09 .3 -$ 74 0. 8 -$ 74 8. 6 -$ 78 7. 7 -$ 83 2. 8 -$ 83 9. 5 -$ 85 0. 1 To ta l R e v e n u e s a n d O t h e r Fi na nc in g S o u r c e s $3 ,3 93 .5 $3 ,4 81 .3 $3 ,2 75 .1 $3 ,3 42 .6 $3 ,4 39 .7 $3 ,4 23 .4 $3 ,2 30 ,1 To ta l S o u r c e s of F u n d s $3 ,6 56 .9 $3 ,8 48 .2 $3 ,9 11 .2 $3 ,9 79 .8 $3 ,9 40 .1 $3 ,8 25 .6 $3 ,4 28 .5 E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s Ce rt if ic at ed Sa la ri es 1 0 0 0 - 1 9 9 9 $1 ,6 06 .1 $1 ,7 26 .3 $1 ,7 09 .7 $1 ,7 67 .2 $1 ,7 94 .0 $1 ,7 76 .3 $1 ,7 57 .2 Cl as si fi ed Sa la ri es 2 0 0 0 - 2 9 9 9 $4 18 .6 $3 95 .7 $4 10 .6 $4 05 .7 $4 21 .1 $4 22 .3 $4 21 .2 E m p l o y e e Be ne fi ts 3 0 0 0 - 3 9 9 9 $7 84 .2 $7 70 .4 $8 23 .0 $8 51 .3 $8 61 .3 $9 03 .7 $9 12 .9 B o o k s & Su pp li es 4 0 0 0 - 4 9 9 9 $1 09 .7 $1 43 .0 $8 8. 2 $9 4. 7 $9 1. 4 $1 42 .9 $1 43 .2 Se rv ic es , Ot he r Op er at in g Ex pe ns es 50 00 -5 99 9 $2 07 .3 $1 52 .2 $1 95 .9 $2 42 .7 $2 15 .8 $2 30 .2 $2 31 .0 Ca pi ta l Ou tl ay 6 0 0 0 - 6 9 9 9 $9 .7 $1 1. 6 $1 7. 7 $1 7. 4 $2 6. 5 $1 7. 5 $9 .8 Ot he r O u t g o 7 1 0 0 - 7 2 9 8 $0 .6 $0 .2 $1 .2 $1 .2 $1 .2 $1 .2 $1 .2 Ot he r O u t g o 7 4 0 0 - 7 4 9 9 $1 .7 $1 .7 $1 .3 $1 .1 $1 .1 $1 .1 $1 .1 Di re ct Su pp or t/ in di re ct Co st s 7 3 0 0 - 7 3 9 9 -$ 72 .4 -$ 59 .9 -$ 12 6. 4 -$ 70 .1 -$ 83 .4 -$ 81 .8 ~$ 81 .5 Ot he r F i n a n c i n g Us es 7 6 1 0 - 7 6 9 9 $2 24 .4 $7 4. 9 $1 52 .8 $1 68 .2 $2 08 .9 $2 13 .7 $2 11 .2 To ta l E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s $3 ,2 89 .9 $3 ,2 16 .0 $3 ,2 74 .2 $3 ,4 79 .4 $3 ,5 37 .9 $3 ,6 27 .2 $3 ,6 07 .3 E n d i n g Fu nd B a l a n c e $3 66 .9 $6 32 .2 $6 37 .0 $5 00 .4 $4 02 .2 $1 98 .4 $ 1 7 8 . 9 To ta l U s e s of F u n d s $3 ,6 56 .9 $3 ,8 48 .2 $3 ,9 11 .2 $3 ,9 79 .8 $3 ,9 40 .1 $3 ,8 25 .6 $3 ,4 28 .5 Ch an ge i n F u n d B a l a n c e $1 03 .5 $2 65 .3 $0 .9 -$ 13 6. 8 -$ 98 .2 $ 2 0 3 . 8 $ 3 7 7 . 3 C o m p o n e n t s of E n d i n g Ba la nc e: N o n Sp en da bl e- In ve nt or ie s/ Ca sh /O th er s $9 .8 $9 .4 $1 0. 2 $1 0. 2 $1 0. 2 $1 0. 2 $1 0. 2 Re st ri ct ed En di ng Ba la nc es $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 A s s i g n e d E n d i n g B a l a n c e s Ot he r De si gn at io ns /C ar ry ov er s $1 72 .2 $1 47 .0 $1 62 .2 $1 77 .0 $2 47 .5 $3 30 .6 $4 52 .1 R e s e r v e fo r R e v e n u e Un ce rt ai nt ie s $0 .0 $0 .0 $3 03 .1 $2 02 .0 $3 2. 5 $6 5. 0 $9 7. 5 U n a s s i g n e d E n d i n g B a l a n c e s R e s e r v e fo r E c o n o m i c Un ce rt ai nt ie s $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 $6 5. 4 Un de si gn at ed /U na ss ig ne d En di ng Ba la nc es $1 19 .5 $4 10 .3 $9 6. 2 $4 5. 8 $4 6. 7 -$ 27 2. 8 -$ 80 4. 0 To ta l E n d i n g B a l a n c e $3 66 .9 $6 32 .2 $6 37 .0 $5 00 .4 $4 02 .2 $1 98 .4 -$ 17 8. 9 6 3 St ar ti ng 20 09 -1 0, Ti er Il l Ca te go ri ca l Pr og ra ms a r e re po rt ed as un re st ri ct ed pe r S B X 3 4. 6/ 10 /2 01 3 EXHIBIT C - 111 M u l t i - Y e a r P r o j e c t i o n G e n e r a l F u n d Re st ri ct ed B e g i n n i n g B a l a n c e R e v e n u e s a n d O t h e r F i n a n c i n g S o u r c e s R e v e n u e Li mi t S o u r c e s F e d e r a l R e v e n u e s Ot he r St at e R e v e n u e s Ot he r Lo ca l R e v e n u e s Ot he r Fi na nc in g So ur ce s T r a n s f e r s In O t h e r S o u r c e s Co nt ri bu ti on to Re st ri ct ed P r o g r a m s 8 0 1 0 - 8 0 9 9 8 1 0 0 - 8 2 9 9 8 3 0 0 - 8 5 9 9 8 6 0 0 - 8 7 9 9 8 9 0 0 - 8 9 2 9 8 9 3 0 - 8 9 7 9 8 9 8 0 - 8 9 9 9 20 09 -1 0 20 10 -1 1 20 11 -1 2 Ac tu al Ac tu al Ac tu al A m o u n t s A m o u n t s A m o u n t s $4 86 .6 $2 96 .0 $2 67 .4 $1 71 .4 $1 70 .4 $1 69 .3 $9 45 .4 $1 ,0 44 .5 $8 47 .7 $8 97 .3 $8 61 .9 $8 18 .1 $1 1. 1 $5 9. 0 $2 4. 9 $4 6. 5 $5 9. 5 $4 .7 $0 .0 $0 .0 $0 .0 $8 09 .3 $7 40 .8 $7 48 .6 20 12 -1 3 E s t i m a t e d A m o u n t s $1 87 .6 $1 65 .6 $6 15 .5 $7 88 .6 $2 3. 2 $1 1. 4 $0. 0 $7 87 .7 2 0 1 3 - 1 4 E s t i m a t e d A m o u n t s $1 38 .3 $1 70 .3 $7 05 .2 $8 77 .1 $3 9. 9 $0 .0 $0 .0 $8 32 .8 20 14 -1 5 E s t i m a t e d A m o u n t s $7 9. 8 $1 76 .6 $6 80 .7 $7 19 .0 $3 7. 8 $0 .0 $0 .0 $8 39 .5 . 20 15 -1 6 E s t i m a t e d A m o u n t s $7 3. 1 $1 77 .0 $6 76 .2 $7 19 .0 $3 4. 9 $0 .0 $0 .0 $8 50 .1 T ot al R e v e n u e s a n d O t h e r Fi na nc in g S o u r c e s $2 ,8 81 .1 $2 ,9 36 .1 $2 ,6 13 .3 $2 ,3 92 .1 $2 ,6 25 .3 $2 ,4 53 .5 $2 ,4 57 .1 T o t a l S o u r c e s o f F u n d s $3 ,3 67 .6 $3 ,2 32 .1 $2 ,8 80 .7 $2 ,5 79 .7 $2 ,7 63 .5 $2 ,5 33 .2 $2 ,5 30 .2 E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s Ce rt if ic at ed Sa ta ri es Cl as si fi ed Sa la ri es E m p l o y e e Be ne fi ts B o o k s & Su pp li es Se rv ic es , Ot he r Op er at in g E x p e n s e s Ca pi ta l Ou tl ay Ot he r O u t g o Ot he r O u t g o Di re ct Su pp or t/ In di re ct C o s t s Ot he r Fi na nc in g U s e s 10 00 -1 99 9 2 0 0 0 - 2 9 9 9 3 0 0 0 - 3 9 9 9 4 0 0 0 - 4 9 9 9 5 0 0 0 - 5 9 9 9 6 0 0 0 - 6 9 9 9 7 1 0 0 - 7 2 9 9 7 4 0 0 - 7 4 9 9 7 3 0 0 - 7 3 9 9 7 6 1 0 - 7 6 9 9 T o t a l E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s E n d i n g F u n d B a l a n c e T o t a l U s e s o f F u n d s C h a n g e i n F u n d B a l a n c e C o m p o n e n t s of E n d i n g Ba la nc e: N o n S p e n d a b l i e - I n v e n t o r i e s / C a s h / O t h e r s Re st ri ct ed En di ng Ba la nc es As si gn ed En di ng Ba la nc es Ot he r De si gn at io ns /C ar yo ve rs U n a s s i g n e d E n d i n g B a l a n c e s R e s e r v e fo r E c o n o m i c Un ce rt ai nt ie s T o t a l E n d i n g B a l a n c e Un de si gn at ed /U na ss ig ne d En di ng Ba la nc es $1 ,2 01 .9 $1 ,0 86 .8 $9 71 .9 $4 89 .5 $4 58 .6 $4 08 .7 $6 23 .2 $5 68 .2 $5 42 .8 $1 50 .4 $2 10 .4 $1 42 .9 $ 5 5 3 . 4 $ 5 2 9 . 2 $ 5 0 2 . 0 $8 .5 $5 9. 9 $2 5. 8 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $6 0. 8 $5 0. 7 $9 9. 0 $0 .0 $0 .9 $0 .0 $3 ,0 87 .6 $2 ,9 64 .7 $2 ,6 93 .1 $2 80 .0 $2 67 .4 $1 87 .6 $3 ,3 67 .6 $3 ,2 32 .1 $2 ,8 80 .7 -$ 20 6. 5 -$ 28 .6 -$ 79 .8 $1 .0 $1 .0 $1 .0 $2 78 .0 $2 66 .4 $1 86 .6 $1 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $0 .0 $2 80 .0 $2 67 .4 $1 87 .6 64 St ar ti ng 20 09 -1 0, Ti er lll Ca te go ri ca l Pr og ra ms a r e re po rt ed as un re st ri ct ed pe r S B X 3 4. $837.8 $392.2 $504.4 $109.2 $535.6 $4.9 $0.0 $0.0 $57.5 $0.1 $2,441.4 $138.3 $2,579.7 $49.3 $1.0 $137.3 $0.0 $0.0 $0.0 $138.3$78 8. 1 $3 83 .3 $5 12 .9 $4 13 .3 $5 13 .8 $4 .1 $0 .0 $0 .0 $6 8. 3 $0 .0 $2 ,6 83 .8 $7 9. 8 $2 ,7 63 .5 -$ 58 .5 $1 .0 $7 8. 8 $0 .0 $0 .0 $0 .0 $7 9. 8 $8 18 .4 $3 95 .8 $5 10 .6 $1 56 .5 $5 11 .6 $1 .5 $0 .0 $0 .0 $6 5. 7 $0 .0 $2 ,4 60 .2 $7 3. 1 $2 ,5 33 .2 $ 6 . 7 $1 .0 $7 2. 1 $0 .0 $0 .0 $0 .0 $7 3. 1 $8 05 .4 $3 94 .2 $5 11 .8 $1 53 .8 $5 21 .4 $1 .5 $0 .0 $0 .0 $6 5. 4 $0 .0 $2 ,4 53 .4 $7 6. 8 $2 ,5 30 .2 $3 .7 $1 .0 $7 5. 8 $0 .0 $0 .0 $0 .0 $7 6. 8 6/ 10 /2 01 3 FINANCIAL DETAILS Introduction The Financial Details Section presents District budget information that is more detailed than the summary and graphic information presentedin the Fund Highlights. This section includestables for revenue and expenditures by fund, and General Funddetails. EXHIBIT C - 112 General Fund Unrestricted & Restricted SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund (001&003/010) Unrestricted and Restricted Programs General Fundis the primary operating fundfor the K - 12 program. 2009-10 2010-11 2011-12, = 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $11.5 $10.8 $10.4 $11.2 $11.2 $11.2 Restricted Beginning Balances $553.9 $278.0 $266.4 $186.6 $137.3 $137.3 Assigned Beginning Balances $212.8 $173.2 $147.0 $162.2 $177.0 $177.0 Reservefor Revenue Uncertainties $0.0 $0.0 $0.0 $303.1 $202.0 $202.0 Unassigned Beginning Balances Reserve for Economic Uncertainties $72.4 $65.4 $65.4 $65.4 $65.4 $65.4 Undesignated/Unassigned Beginning Balances $0.0 $119.5 $410.3 $96.2 $45.8 $45.8 Restatementof Beginning Balances $0.0 $0.0 $5.1 $0.0 $0.0 $0.0 Audit Adjustments -$100.6 $16.0 $1.1 $0.2 $0.0 $0.0 Total Beginning Balance $750.0 $662.9 $903.5 $824.8 $638.7 $638,7 Revenue Revenue Limit Revenues $2,977.2 $3,056.4 $2,968.2 — $2,920.7 $3,055.9 $3,055.9 Federal Revenues $964.0 $1,066.5 $868.0 $636.3 $726.2 $726.2 State Revenues $2,159.4 $2,031.8 $1,903.5 $2,014.1 $2,119.5 $2,119.5 Local Revenues $108.1 $171.6 $139.1 $124.0 $141.3 $141.3 Interfund Transfers In $62.9 $88.1 $5.5 $23.5 $21.4 $21.4 Other Financing Sources $3.0 $3.0 $4.2 $16.1 $0.8 $0.8 interprogram Transfers $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $6,274.5 $6,417.4 $5,888.4 —_$5,734.7 $6,065.0 $6,065.0 TotalSources ofFunds $7,024.5 __$7,080.3_$6,791.9 $6,559.55 _-$6,703.7 ——-$6,703.7 Uses of Funds Expenditure Certificated Salaries $2,807.9 $2,813.1 $2,681.6 $2,605.0 $2,599.7 $2,582.2 Classified Salaries $908.1 $854.2 $819.2 $798.0 $772.9 $804.4 Employee Benefits $1,407.4 $1,338.6 $1,365.8 $1,355.4 $1,432.6 $1,374.2 Books and Supplies $260.1 $353.4 $231.1 $203.9 $672.4 $504.7 Other Operating Expenses $760.7 $681.4 $698.0 $778.2 $781.7 $729.6 Capital Outlay $18.2 $71.6 $43.6 $22.4 $12.3 $30.6 Other Outgo $215.1 $68.4 $127.9 $157.9 $195.5 $196.1 TotalExpenditure $6,377.5 _$6,180.8 ——$5,967.3 $5,920.8 —-$6,466.9 —-$6,221.7 Ending Balance Non Spendable-Inventories, Cash, Others $10.8 $10.4 $11.2 $11.2 $11.2 $11.2 Restricted Ending Balances $278.0 $266.4 $186.6 $137.3 $0.0 $78.8 Assigned Ending Balances $173.2 $147.0 $162.2 $177.0 $81.0 $247.4 Reserve for Revenue Uncertainties $0.0 $0.0 $303.1 $202.0 $32.5 $32.5 Unassigned Ending Balances Reserve for Economic Uncertainties $65.4 $65.4 $65.4 $65.4 $65.4 $65.4 Undesignated/Unassigned Ending Balances $119.5 $4103 $96.2 $45.8 $46.7 $46.7 Total Ending Balance $646.9 $899.6 $824.6 $638.7 $236.8 $482.0 Total Uses ofFunds $7,024.55 _$7,080.3—$6,791.9 $6,559.55 —_-$6,703.7 ——-$6,703.7 67 EXHIBIT C - 114 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Unrestricted Programs (0018003/010) General Fund- Unrestricted are those fundsthat can be used for any general education purpose. Per SBX34,starting FY 2009-10, Tier II] Categorical funds have been classified Unrestricted Genera! Fund. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources ofFunds Beginning Balance Non Spendable-Inventories, Cash, Others $10.3 $9.8 $9.4 $10.2 $10.2 $10.2 Restricted Beginning Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Assigned Beginning Balances $211.9 $172.2 $147.0 $162.2 $177.0 $177.0 Reserve for Revenue Uncertainties $0.0 $0.0 $0.0 $303.1 $202.0 $202.0 Unassigned Beginning Balances Reserve for Economic Uncertainties $72.4 $65.4 $65.4 $65.4 $65.4 $65.4 Undesignated/Unassigned Beginning Balances $0.0 $119.5 $410.3 $96.2 $45.8 $45.8 Restatementof Beginning Balances $0.0 $0.0 $5.1 $0.0 $0.0 $0.0 Audit Adjustments -$38.8 $0.0 $1.1 $0.2 $0.0 $0.0 TotalBeginning Balance $255.8 $366.9 $636.1 $637.2 $500.4 $500.4 Revenue RevenueLimit Revenues $2,805.8 $2,886.0 $2,798.9 $2,755.1 $2,885.5 $2,885.5 Federal Revenues $18.5 $22.0 $20.2 $20.8 $20.9 $20.9 State Revenues $1,265.4 $1,170.3 $1,085.4 $1,225.4 $1,242.4 $1,242.4 Local Revenues $96.9 $112.7 $114.3 $100.8 $101.4 $101.4 Interfund Transfers In $16.4 $28.6 $0.8 $12.2 $21.4 $21.4 Other Financing Sources $3.0 $3.0 $4.2 $16.1 $0.8 $0.8 Interprogram Transfers -$805.0 -$740.9 -$748.6 -$787.7 -$872.5 -$832.8 Total Revenue $3,401.1 $3,481.7 $3,275.1 $3,342.6 $3,399.9 $3,439.7 TotalSources ofFunds $3,656.9 $3,848.6 $3,911.2 _ $3,979.8 $3,900.4 —_—$3,940.1 Uses of Funds Expenditure Certificated Salaries $1,606.1 $1,726.4 $1,709.7 $1,767.2 . $1,794.6 $1,794.0 Classified Salaries $418.6 $395.7 $410.6 $405.7 $410.9 $421.1 Employee Benefits $784.2 $770.5 $823.0 $851.3 $902.1 $861.3 Books and Supplies $109.7 $143.0 $88.2 $94.7 $182.1 $91.4 Other Operating Expenses $207.3 $152.3 $195.9 $242.7 $245.1 $215.8 Capital Outlay $9.7 $11.6 $17.7 $17.4 $6.6 $26.5 Other Outgo $154.2 $16.9 $29.0 $100.4 $123.2 $127.8 Totat Expenditure $3,289.9 $3,2165 $3,274.22 «$3,479.44 «$3,664.66 ~——«$3,537.9 Ending Balance Non Spendable-Inventories, Cash, Others $9.8 $9.4 $10.2 $10.2 $10.2 $10.2 Assigned Ending Balances $172.2 $147.0 $162.2 $177.0 $81.0 $247.4 Reservefor Revenue Uncertainties $0.0 $0.0 $303.1 $202.0 $32.5 $32.5 Unassigned Ending Balances Reserve for Economic Uncertainties $65.4 $65.4 $65.4 $65.4 $65.4 $65.4 Undesignated/Unassigned Ending Balances $119.5 $410.3 $96.2 $45.8 $46.7 $46.7 Total Ending Balance $366.9 $632.2 $637.0 $500.4 $235.8 $402.2 Total Uses ofFunds $3,656.9 $3,8486 —$3,911.2 —$3,9798 ——$3,900.4 «$3,940. 68 EXHIBIT C - 115 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Restricted Programs (003/010) General Fund- Restricted are those fundsreceived from external sources for a specific purpose. Per SBX3 4, starting FY 2009-10,Tier Il! Categorical funds have beenclassified Unrestricted General Fund. 2009-10 2009-10 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $1.2 $1.0 $1.0 $1.0 $1.0 $1.0 Restricted Beginning Balances $553.9 $278.0 $266.4 $186.6 $137.3 $1373 Assigned Beginning Balances $0.9 $1.0 $0.0 $0.0 $0.0 $0.0 Reserve for Revenue Uncertainties $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Unassigned Beginning Balances Reserve for Economic Uncertainties $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Undesignated/Unassigned Beginning Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 RestatementofBeginning Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Audit Adjustments -$61.8 $16.0 $0.0 $0.0 $0.0 $0.0 Total Beginning Balance $494.2 $296.0 $267.4 $187.6 $1383 $1383 Revenue Revenue Limit Revenues $171.4 $170.4 $1693 $165.6 $1703 $170.3 Federal Revenues $945.4 $1,044.5 $847.7 $615.5 $705.2 $705.2 State Revenues $893.9 $861.5 $818.1 $788.6 $877.1 $877.1 Local Revenues $11.1 $59.0 $24.9 $23.2 $39.9 $39.9 Interfund Transfers In $46.5 $59.5 $4.7 $11.4 $0.0 $0.0 Other Financing Sources $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Interprogram Transfers $805.0 $740.9 $748.6 $787.7 $872.5 $8328 Total Revenue $2,8734 $2,935.7_—$2,613.3 $2,392 ——-$2,665.1 ——-$2,625.3 TotalSources ofFunds $3,367.6_ $3,231.77 $2,880.7__$2,579.7__—-$2,803.3 —-$2,763.5 Uses ofFunds Expenditure Certificated Salaries $1,201.9 $1,086.6 $9719 $837.8 $805.2 $788.1 Classified Salaries $489.5 $458.5 $408.7 $392.2 $362.0 $383.3 Employee Benefits $623.2 $568.1 $542.8 $504.1 $530.4 $512.9 Books and Suppltes $150.4 $210.4 $142.9 $109.2 $490.3 $413.3 Other Operating Expenses $553.4 $529.1 $502.0 $535.6 $536.5 $513.8 Capital Outlay $8.5 $59.9 $25.8 $4.9 $5.7 $4.1 Other Outgo $60.8 $51.6 $99.0 $57.5 $72.2 $68.3 Total Expenditure $3,087.66 $2,964.3 ——$2,693.1 _$2,441.4 $2,802.33 ——$2,683.8 Ending Balance Non Spendable-Inventories, Cash, Others $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 Restricted Ending Balances $278.0 $266.4 $186.6 $137.3 $0.0 $78.8 Assigned Ending Balances $1.0 $0.0 $0.0 $0.0 $0.0 $0.0 Reserve for Revenue Uncertainties $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Unassigned Ending Balances Reserve for Economic Uncertainties $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Undesignated/Unassigned Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Ending Balance $280.0 $267.4 $187.6 $138.3 $1.0 $79.8 Total Uses ofFunds $3,367.6__$3,231.7___——$2,880.7___-$2,579.7___—4$2,8033 —«$2,763.5 EXHIBIT C - 116 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Unrestricted and Restricted Programs Expenditures by Sub-Object 2009-10 = =2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts _—_ Estimate Amounts Amounts Amounts in $millions Certificated Salaries 1100 Salaries - Teachers $2,166.1 $2,183.5 $2,086.2 $2,035.2 $2,044.8 $2,016.8 1200 Salaries - Schoo! Administrators $163.2 $156.3 $144.7 $139.5 $150.0 $138.9 1300 Salaries - Supervisors $97.8 $94.9 $109.9 $113.1 $104.7 $105.6 1400 Salaries - Librarians $11.4 $9.0 $7.3 $6.6 $6.0 $7.5 1500 Salaries - Counselors $167.4 $167.7 $152.9 $142.7 $132.7 $143.1 1600 Salaries~ Nurses & Health Employees $62.1 $60.4 $58.3 $56.4 $57.6 $65.8 1700 Salaries - Superintendents $2.0 $2.3 $2.4 $1.9 $2.0 $1.9 1800 Salaries - Non-school Administrators $10.6 $6.8 $5.1 $5.5 $4.3 $5.5 1900 OtherCertificated Employees $127.3 $132.1 $114.9 $104.2 $97.7 $97.1 Total Certificated Salaries $2,807.9 _$2,813.1 $2,6B1.6 $2,605.0 _—$2,599.7___-$2,582.2 Classified Salaries 2100 Instructional Aides $229.5 $217.6 $215.0 $208.9 $205.2 $208.0 2200 Classified Administrators $20.9 $19.7 $20.0 $20.8 $21.4 $19.8 2300 Clerical and Office Employees $262.3 $232.8 $215.9 $209.4 $210.1 $207.9 2400 Maintenance & Operations Employees $252.4 $236.6 $220.8 $206.0 $190.2 $214.4 2500 Food Service Employees $0.6 $1.1 $1.4 $1.3 $0.1 $0.9 2600 Transportation Employees $60.9 $59.7 $60.8 $63.8 $58.4 $62.7 2900 OtherClassified Employees $81.4 $86.7 $85.3 $87.7 $87.5 $90.5 TotalClassified Salaries $908.1 $854.2 $819.2 $798.0 $772.9 $804.4 Employee Benefits 3100 State Teachers Retirement System $223.6 $226.2 $215.6 $207.3 $210.5 $205.3 3200 Public Employees Retirement System $105.9 $103.0 $99.9 $99.8 $99.4 $100.1 3300 Social Security, Medicare, PARS $112.3 $98.4 $98.2 $95.8 $101.7 $98.8 3400 Benefits - Employee Health Benefits $537.7 $512.6 $552.2 $548.0 $538.8 $538.8 3500 Benefits - UnemploymentInsurance $12.5 $30.8 $62.7 $42.9 $42.6 $42.8 3600 Benefits - Workers Compensation $97.9 $42.6 $71.6 $94.1 $90.2 $89.6 3700 Benefits - Retiree Health Benefits $289.1 $303. $248.7 $253.6 $334.0 $283.9 3800 Benefits - PERS Recapture $14.0 $6.8 $4.0 $0.9 $2.0 $2.0 3900 Benefits - General $14.5 $14.7 $13.0 $12.9 $13.4 $12.8 Totai Employee Benefits $1,407.4 — $1,338.6 $1,365.8 $1,355.4 $1,432.6 $1,374.2 Books and Supplies 4100 Textbooks $62.8 $96.5 $43.1 $47.4 $22.6 $26.3 4200 Other Books $1.4 $13.8 $0.6 $0.5 $3.6 $0.2 4300 Instructional Materials $86.9 $93.2 $58.7 $64.9 $413,3 $297.8 4400 Non-Capitalized Equipment $35.6 $53.5 $41.8 $20.2 $3.0 $11.4 4500 General Supplies $64.2 $86.8 $76.1 $60.2 $219.0 $158.0 4600 Pupil Transportation Supplies $8.9 $9.4 $9.7 $10.4 $10.1 $10.3 4700 FoodServices Supplies $0.3 $0.2 $1.0 $0.3 $0.7 $0.7 Total Books and Supplies $260.1 $353.4 $231.1 $203.9 $672.4 $504.7 70 EXHIBIT C - 117 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Unrestricted and Restricted Programs Expenditures by Sub-Object 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts $9.5 Other Operating Expense $0.0 5100 Instructional Consultants $77.1 $91.3 $86.5 $84.0 $68.1 $66.6 5200 Travel & Conference Expenses $8.2 $8.0 $7.2 $7.7 $6.6 $6.8 5300 Dues and Memberships $0.6 $0.6 $0.6 $0.7 $0.2 $0.6 5400 Insurance $43.7 $17.9 $37.2 $749 $28.7 $28.6 5500 Utilities & Housekeeping Services $98.9 $108.3 $105.4 $113.8 $122.0 $121.7 5600 Rentals, Leases & Repairs $45.7 $37.7 $37.2 $19.0 $58.7 $22.2 5700 Subagreements $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 5800 Other Services & Operating Expenses $467.4 $396.7 $399.7 $453.0 $471.0 $457.9 5900 Telephone, Pager & Postage $19.1 $21.0 $24.1 $25.1 $26.4 $25.2 Total Operating Expense $760.7 $681.4 $698.0 $778.2 $781.7 $729.6 Capital Outlay 6100 Sites & ImprovementofSites $1.0 $2.6 $1.1 $0.5 $0.6 $0.4 6200 Buildings & improvementofBuildings $9.6 $13.4 $15.8 $11.3 $4.4 $24.5 6300 Books & Media for Libraries $1.2 $0.0 $4.9 $6.1 $0.0 $0.0 6400 Equipment $3.2 $51.7 $16.7 $1.6 $2.2 $3.6 6500 Equipment Replacement $3.2 $3.9 $5.1 $2.9 $5.0 $2.0 Total Capital Outlay $18.2 $71.6 $43.6 $22.4 $12.3 $30.6 Other Outgo 7100 Tuition $0.6 $0.2 $0.2 $0.2 $0.7 $0.2 7200 Other Transfer Out $0.0 $0.0 $1.0 $1.0 $1.0 $1.0 7300 Interprogram Support Costs {$11.6) ($9.2) ($27.4) ($12.7) ($15.1) ($15.1) 7600 InterfundTransfers $224.4 $75.8 $152.8 $168.3 $208.9 $208.9 7700 Other Uses $1.7 $1.7 $1.3 $1.1 $0.0 $1.1 Total Other Outgo $215.1 $68.4 $127.9 $157.9 $195.5 $196.1 Total Expenditures $6,377.5 $6,180.8 $5,967.3 $5,920.8 $6,466.9 $6,221.7 71 EXHIBIT C - 118 SUPERINTENDENT'S 2013-14 FINAL BUDGET GeneralFund- Unrestricted Programs Expenditures by Sub-Object 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts _—_ Estimate Amounts Amounts Amounts in $millions Certificated Salaries 1100 Salaries - Teachers $1,301.88 $1,454.7 $1,432.1 $1,483.3 $1,505.6 $1,490.3 1200 Salaries - School Administrators $131.3 $124.9 $116.9 $112.5 $124.4 $112.9 1300 Salaries - Supervisors $49.0 $43.6 $59.7 $62.0 $59.7 $61.8 1400 Salaries - Librarians $9.9 $5.3 $5.1 $5.2 $5.0 $6.3 1500 Salaries - Counselors $61.8 $58.7 $53.9 $63.2 $64.8 $67.6 1600 Salaries - Nurses & Health Employees $20.2 $14.6 $16.0 $15.9 $16.4 $29.5 1700 Salaries - Superintendents $2.0 $2.3 $2.4 $1.9 $2.0 $1.9 1800 Salaries - Nonschoo) Administrators $7.3 $4.5 $3.5 $3.7 $2.5 $3.7 1900 Other Certificated Employees $22.8 $17.9 $20.1 $19.6 $14.3 $20.0 TotalCertificated Salaries $1,606.1 $1,726.4 ——$1,709.7__‘$1,767.2___$1,794.6 —_-$1,794.0 Classified Salaries 2100 Instructional Aides $2.3 $4.2 $4.6 $3.9 $2.2 $3.9 2200 Classified Administrators $15.6 $15.2 $15.6 $15.5 $17.8 $15.5 2300 Clerical and Office Employees $188.1 $172.1 $166.1 $160.3 $172.2 $165.3 2400 Maintenance & Operations Employees $149.1 $138.1 $161.1 $158.6 $145.7 $162.3 2500 Food Service Employees ($0.3) $0.2 $0.3 $0.3 $0.0 $0.3 2600 Transportation Employees $31.4 $31.8 $30.5 $30.0 $31.4 $29.9 2900 Other Classified Employees $32.4 $34.0 $32.4 $37.2 $41.5 $43.9 TotalClassified Salaries $418.6 $395.7 $410.6 $405.7 $410.9 $421.1 Employee Benefits 3100 State Teachers Retirement System $129.6 $141.4 $139.8 $143.0 $146.8 $144.5 3200 Public Employees Retirement System $56.2 $49.0 $57.2 $56.7 $60.2 $59.3 3300 Social Security, Medicare, PARS $55.6 $49.2 $53.0 $54.0 $58.5 $55.1 3400 Benefits - Employee Health Benefits $292.6 $294.9 $328.3 $339.9 $322.6 $332.7 3500 Benefits - Unemployment Insurance $7.0 $19.5 $39.1 $28.4 $27.8 $28.1 "3600 Benefits - Workers Compensation $54.2 $24.7 $44.6 $60.7 $55.5 $57.8 3700 Benefits - Retiree Health Benefits $168.2 $174.9 $148.0 $157.6 $215.4 $177.3 3800 Benefits - PERS Recapture $6.4 $2.1 $0.1 ($1.7) $1.8 ($6.4) 3900 Benefits - General $14.5 $14.7 $13.0 $12.8 $13.4 $12.8 Total Employee Benefits $784.2 $770.5 $823.0 $851.3 $902.1 $861.3 Books and Supplies 4100 Textbooks $49.8 $79.3 $23.7 $23.6 $3.4 $7.2 4200 Other Books $0.7 $1.5 $0.3 $0.2 $3.6 $0.1 4300 Instructional Materials $24.0 $19.6 $23.4 $24.3 $70.6 $33.2 4400 Non-Capitalized Equipment $9.1 $8.7 $9.3 $6.8 $0.8 $7.1 4500 General Supplies $22.3 $28.7 $27.4 $35.7 $98.0 $39.8 4600 Pupil Transportation Supplies $3.9 $5.3 $4.1 $4.1 $5.7 $4.1 4700 Food Services Supplies $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Books and Supplies $109.7 $143.0 $88.2 $94.7 $182.1 $91.4 72 EXHIBIT C - 119 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Unrestricted Programs Expenditures by Sub-Object 2009-10 2010-11 2011-12 =2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Other Operating Expense 5100 Instructional Consultants $78 $5.3 $7.3 $5.4 $5.0 $3.2 5200 Travel & Conference Expenses $2.4 $2.0 $2.5 $2.6 $4.5 $2.5 5300 Dues and Memberships $0.5 $0.4 $0.5 $0.6 $0.2 $0.6 5400 Insurance $43.7 $17.9 $37.2 $74.9 $28.7 $28.6 5500 Utilities & Housekeeping Services $96.9 $105.9 $105.2 $113.6 $119.6 $121.4 5600 Rentals, Leases & Repairs $32.7 $23.0 $26.5 $13.9 $38.4 $16.1 5700 Subagreements ($113.6) ($88.6) ($87.0) ($89.5) ($89.5) ($89.5) 5800 OtherServices & Operating Expenses $119.4 $66.9 $80.7 $96.6 $112.9 $108.7 5900 Telephone, Pager & Postage $17.6 $19.4 $23.1 $24.5 $25.3 $24.2 Total Operating Expense $207.3 $152.3 $195.9 $242.7 $245.1 $215.8 Capital Outlay 6100 Sites & improvementofSites $0.8 $0.8 $0.9 $0.5 $0.6 $0.4 6200 Buildings & ImprovementofBuildings $5.5 $9.6 $11.0 $10.2 $3.7 $23.7 6300 Books & Media for Libraries $1.2 $0.0 $4.9 $6.1 $0.0 $0.0 6400 Equipment $2.2 $1.3 $0.7 $0.4 $1.8 $2.0 6500 Equipment Replacement ($0.0) $0.0 $0.2 $0.3 $0.5 $0.3 Total Capital Outlay $9.7 $11.6 $17.7 $17.4 $6.6 $26.5 Other Outgo 7100 Tuition $0.6 $0.2 $0.2 $0.2 $0.7 $0.2 7200 OtherTransfer Out $0.0 $0.0 $1.0 $1.0 $1.0 $1.0 7300 Interprogram Support Costs ($72.4) ($59.9) ($126.4) ($70.1) ($87.3) ($83.4) 7600 InterfundTransfers $224.4 $74.9 $152.8 $168.2 $208.9 $208.9 7700 Other Uses $1.7 $1.7 $1.3 $1.1 $0.0 $1.1 Total Other Outgo $154.2 $16.9 $29.0 $100.4 $123.2 $127.8 Total Expenditures $3,289.9 — $3,216.5 $3,274.2 $3,479.4 $3,664.6 $3,537.9 73 EXHIBIT C - 120 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Restricted Programs Expenditures by Sub-Object 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amountsin $millions Certificated Salaries 1100 Salaries - Teachers $864.4 $728.8 $654.0 $551.8 $539.2 $526.5 1200 Salaries - Schoo] Administrators $31.9 $31.4 $27.7 $27.0 $25.6 $25.9 1300 ’ Salaries - Supervisors $48.9 $51.3 $50.2 $51.1 $45.0 $43.8 1400 Salaries - Librarians $1.5 $3.7 $2.1 $1.4 $1.0 $1.2 1500 Salaries - Counselors $105.6 $109.1 $99.0 $79.6 $67.8 $75.4 1600 Salaries - Nurses & Health Employees $41.9 $45.9 $42.3 $40.5 $41.2 $36.2 1700 Salaries - Superintendents $0.1 $0.0 $0.1 $0.0 $0.0 $0.0 1800 Salaries - Nonschool Administrators $3.2 $2.3 $1.7 $1.8 $1.8 $1.8 1900 OtherCertificated Employees $104.5 $114.2 $94.8 $84.6 $83.4 $77.2 TotalCertificated Salaries $1,201.9 _ $1,086.6 $9719 $837.8 $805.2 $788.1 Classified Salaries 2100 Instructional Aides $227.3 $213.3 $210.4 $205.0 $202.9 $204.2 2200 Classified Administrators $5.3 $4.5 $4.4 $5.3 $3.5 $4.3 2300 Clerical and Office Employees $74.2 $60.6 $49.8 $49.2 $37.9 $42.6 2400 Maintenance & Operations Employees $103.3 $98.5 $59.7 $47.4 $445 $52.1 2500 Food Service Employees $0.9 $1.0 $1.1 $1.0 $0.1 $0.7 2600 Transportation Employees $29.5 $27.9 $30.3 $33.9 $27.0 $32.8 2900 Other Classified Employees $49.1 $52.7 $53.0 $50.5 $46.1 $46.6 Total Classified Salaries $489.5 $458.5 $408.7 $392.2 $362.0 $383.3 Employee Benefits 3100 State Teachers Retirement System $94.1 $84.9 $75.8 $64.4 $63.7 $60.8 3200 Public Employees Retirement System $49.7 $53.9 $42.6 $43.1 $39.2 $40.9 3300 Social Security, Medicare, PARS $56.6 $49.1 $45.2 $41.8 $43.1 $43.8 3400 Benefits - Employee Health Benefits $245.0 $217.7 $223.9 $208.1 - $216.1 $206.0 3500 Benefits - UnemploymentInsurance $5.5 $11.3 $23.6 $14.5 $14.8 $14.7 3600 Benefits - Workers Compensation $43.7 $17.9 $27.0 $33.4 $34.7 $31.8 3700 Benefits - Retiree Health Benefits $121.0 $128.6 $100.8 $96.0 $118.6 $106.6 3800 Benefits - PERS Recapture $7.6 $4.7 $3.9 $2.7 $0.2 $8.4 3900 Benefits - General $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 Total Employee Benefits $623.2 $568.1 $542.8 $504.1 $530.4 $512.9 Books and Supplies 4100 Textbooks $13.0 $17.2 $19.3 $23.8 $19.1 $19.1 4200 Other Books $0.7 $12.4 $0.3 $0.3 $0.0 $0.1 4300 Instructional Materials $62.9 $73.6 $35.4 $40.6 $342.8 $264.6 4400 Non-Capitalized Equipment $26.5 $44.8 $32.6 $13.4 $2.2 $4.3 4500 GeneralSupplies $41.9 $58.1 $48.8 $24.5 $121.0 $118.2 4600 Pupil Transportation Supplies $5.0 $4.1 $5.7 $6.3 $4.5 $6.2 4700 FoodServices Supplies $0.3 $0.2 $0.9 $0.3 $0.7 $0.7 Total Books and Supplies $150.4 $210.4 $142.9 $109.2 $490.3 $413.3 74 EXHIBIT C - 121 SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Restricted Programs Expenditures by Sub-Object 2009-10 2010-11 2011-12 2012-13 © 2013-14 ~=—-2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts _ Estimate Amounts Amounts Other Operating Expense 5100 Instructional Consultants $69.3 $86.0 $79.2 $78.6 $63.2 $63.4 5200 Travel & Conference Expenses $5.8 $5.9 $4.8 $5.1 $2.1 $4.3 $300 Dues and Memberships $0.1 $0.1 $0.1 $0.1 $0.0 $0.0 5400 Insurance $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 5500 Utilities & Housekeeping Services $2.1 $2.4 $0.2 $0.3 $2.3 $0.3 5600 Rentals, Leases & Repairs $13.0 $14.8 $10.7 $5.1 $20.2 $6.1 $700 Transfers of Direct Costs $113.6 $88.6 $87.0 $89.5 $89.5 $89.5 5800 OtherServices & Operating Expenses $348.0 $329.8 $319.0 $356.4 $358.1 $349.1 5900 Telephone, Pager & Postage $1.5 $1.6 $1.0 $0.6 $1.1 $1.0 Total Operating Expense $553.4 $529.1 $502.0 $535.6 $536.5 $513.8 Capital Outlay 6100 Sites & ImprovementofSites $0.3 $1.8 $0.2 $0.0 $0.0 $0.0 6200 Buildings & Improvementof Buildings $4.0 $3.8 $4.8 $1.1 $0.8 $0.8 6300 Books & Meidafor Libraries $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 6400 Equipment $1.0 $50.4 $15.9 $1.2 $0.4 $1.5 6S00 Equipment Replacement $3.2 $3.9 $4.9 $2.6 $4.5 $1.7 Total Capital Outlay $8.5 $59.9 $25.8 $4.9 $5.7 $4.1 Other Outgo 7200 Other Transfer Out $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 7300 Interprogram Support Costs $60.8 $50.7 $99.0 $57.5 $72.2 $68.3 7600 InterfundTransfers $0.0 $0.9 $0.0 $0.1 $0.0 $0.0 Total Other Outgo $60.8 $51.6 $99.0 $57.5 $72.2 $68.3 Total Expenditures $3,087.6 $2,964.3 $2,693.1 $2,441.4 $2,802.3 $2,683.8 75 EXHIBIT C - 122 OPERATING FUND SUPERINTENDENT'S 2013-14 FINAL BUDGET Total Sources General Fund Restricted Programs Reporting Beginning New Total Resource SACS RESOURCE Balance Carryover Revenue Contribution Sources Federal Sources 3010 NCLB:Title 1, Part A, Basic Grants Low-Income and Neglected $0.0 $5.6 $300.9 $0.0 $306.5 3025 NCLB:Title I, Part D, Local Delinquent Programs $0.0 $0.0 $1.0 $0.0 $1.0 3060 NCLB:Title I, Part C, Migrant Ed (Regular and Summer Program) $0.0 $0.1 Sit -$0.4 $0.7 3061 NCLB:Title I, Migrant Ed Summer Program $0.0 $0.0 $0.0 $0.4 $0.4 3180 NCLB:Title 1, School Improvement Grant $0.0 $8.6 $0.0 $0.0 $8.6 3181 NCLB: ARRA Title I, School Improvement Grant $0.0 $9.2 $0.0 $0.0 $9.2 3310 Special Ed: IDEA Basic Local Assistance Entitlement, Part B, Sec 611 (formerly P $0.0 $0.0 $132.8 $14.7) $1182 3311 Special Ed: IDEA LocalAssistance, Part B, Sec 611, Private School ISPs $0.0 $0.0 $0.0 $1.8 $1.8 3312 Special Ed: IDEA LocalAssistance $0.0 $0.0 $0.0 $12.9 $12.9 3315 Special Ed: IDEA Preschool Grants, Part B, Sec 619 $0.0 $0.1 $5.9 -$0.8 $5.3 3318 Special Ed: IDEA Part B, Sec 619 Preschool Granats Early Intervention Services $0.0 $0.0 $0.0 $0.8 $0.8 3320 Special Ed: IDEA Preschool Local Entitlement, Part B, Sec 611 $0.0 $0.0 $12.8 $17 SUI 3327 Special Ed: IDEA Mental Health Allocation Plan, Part B, Sec 61! $0.0 $0.0 $7.0 $0.0 $7.0 3332 Special Ed: IDEA-B PreSch Loc Entl EIS $0.0 $0.0 $0.0 $1.7 $1.7 3385 Special Ed: IDEA Early Intervention Grants $0.0 $0.0 $1.2 $0.0 $1.2 3410 Department of Rehab: Workability II, Transition Partnership $0.0 $0.0 $0.9 $0.0 $0.9 3550 Vocational Programs: Voc & Appl Tech Secondary II C, Sec 131 (Carl Perkins Act) $0.0 $0.0 $5.7 $0.0 $5.7 4035 NCLB:Title H, Part A, Teacher Quality $0.0 $5.2 $42.5 $0.0 $47.8 4050 NCLB:Title fl, Part B, CA Mathematics and Science Partnerships $0.0 $0.0 $0.0 50.0 $0.0 4124 NCLB:Title IV,Part B, 2tst Century Community Learning Centers Program $0.0 $3.0 $11.4 $0.0 $14.4 4203 NCLB:Title IIE, Limited English Proficient (LEP) Student Program $0.0 $4.9 $17.8 $0.0 $22.7 4810 Other ARRA Programs $0.0 $0.6 $0.0 $0.0 50.6 5610 Workforce Investment Act (WIA) From Other Agencies (LWIB) $0.0 $0.0 $0.1 $0.0 $0.1 5640 Medi-Cal Billing Option $0.0 $0.0 $12.0 $4.1 $16.1 5650 FEMAPublic Assistance Funds ~ $0.1 $0.0 $0.0 $0.0 $0.1 5652 FEMAHazard Mitigation Grant $0.0 $0.0 $0.0 $0.0 50.0 5810 Other Restricted Federal $7.1 $15.3 $99.2 $0.0 $121.6 Total Federal Sources $7.2 $52.7 $652.5 $4.1 $716.5 State Sources 2200 Continuation Education (Education Code sections 42244 and 48438) $0.0 $0.0 $20.5 $10.8 $31.3 6010 After School Education and Safety (ASES) $0.0 $0.0 $75.4 $0.0 $75.4 6240 Healthy Start: Planning Grants and Operational Grants $0.0 $0.2 $0.1 $0.0 $0.2 6286 English Language Acquisition Program, TeacherTraining & Student Assistance $3.8 $0.0 $0.0 $0.0 $3.8 6300 Lottery: Instructional Materials $0.0 $0.0 $19.1 $0.0 $19.1 6355 ROC/P: Training & Certification for Community Care (Dept Develop Service) $0.0 $0.0 $0.2 $0.0 $0.2 6360 Pupils with Disabilities Attending ROC/P $0.0 $0.0 $2.4 $0.0 $2.4 6385 Governor's CTE Initiative: California Partnership Academies $0.0 $0.0 $1 $0.0 $1.) 6386 California Partnership Academies: Green and Clean Academies $0.0 $0.0 50.0 30.0 $0.0 6500 Special Education $3.5 $0.0 $510.9 $709.6 $1224.0 6510 Special Ed: Early Ed Individuals with Exceptional Needs(Infant Program) $02 $0.0 $3.0 $0.0 $3.2 6512 Special Ed: Mental Health Services $0.0 $0.0 $36.0 $0.0 $36.0 6530 Special Ed: Low Incidence Entitlement $0.0 $0.0 $0.0 $0.0 $0.0 6690 Tobacco Use Prevention Education: IGH School Comp $0.0 $1.3 $0.0 $0.0 $1.3 7090 Economic Impact Aid (EIA) $0.0 $0.0 $20.0 $0.0 $20.0 7091 Economic Impact Aid: Limited English Proficiency (LEP) $66.3 $0.0 $95.1 $0.0 $161.4 7220 Partnership Academies Program $0.0 $0.0 $1.5 $0.0 SLS 7230 Transportation: Home to School $1.0 $0.0 $36.9 -$0.4 $37.5 7240 Transportation: Special Education (Severely Disabled/Orthopedically Impaired) $0.0 $0.0 $41.8 $9.2 $51.0 7400 Quality Education Investment Act $33.0 $0.0 $71.2 $0.0 $104.2 7810 Other Restricted State $0.4 $0.1 $110.9 $0.0 $111.4 8150 Ongoing & Major Maintenance Account (RMA: Education Code Section 17070.75) $0.0 $0.0 $0.0 $99.5 $99.5 Total State Resources $108.1 $1.6 $1.046.2 $828.6 $1,984.5 Local Sources 9010 Other Local $22.9 $7.5 $32.2 $0.0 $62.6 Total Local Resources $22.9 $7.5 $32.2 $0.0 $62.6 Total Restricted Program Sources $138.3 S618 $1,730.8 $832.7 $2,763.5 76 EXHIBIT C - 123 OPERATING FUND SUPERINTENDENT'S 2013-14 FINAL BUDGET General Fund- Restricted Program Special Education (D) This program ensures the provision of programs,services, and supports for students with disabilities, as determined by their individualized Education Program (IEP) and in accordance with State and Federal regulations. This program is within the General Fund Restricted Programs. Regular Program 2009-10 2010-11 =2011-12 2012-13. 2013-14. 2013-14 Actual Actual Actua] 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions SourcesofFunds Beginning Balance Non Spendable-inventories, Cash, Others $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Restricted Beginning Balances $5.9 $6.8 $14.2 $9.5 $3.7 $3.7 Assigned Beginning Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Audit Adjustments ($54.3) $0.0 $0.0 $0.0 $0.0 $0.0 Total Beginning Balance ($48.3) $6.8 $14.2 $9.5 $3.7 $3.7 Revenue Revenue Limit Revenues $150.1 $147.5 $144.2 $146.2 $149.8 $149.8 Federal Revenues $188.0 $153.6 $154.6. $97.3 $122.9 $122.9 State Revenues $444.4 $423.6 $399.5 $396.9 $396.7 $396.7 Loca) Revenues $0.6 $0.2 $0.4 $0.3 $0.3 $0.3 SELPACharter Schools Revenue $43.4 $48.6 $51.2 $58.1 $61.9 $61.9 Contribution-Unrestricted Programs $634.7 $582.2 $605.5 $678.1 $733.3 $693.5 Contribution-Fair Share $0.0 $13.9 $13.9 $12.7 $12.4 $12.4 Contribution-Restricted Programs $23.3 $22.2 $25.0 $26.8 $19.6 $19.6 Total Revenue $1,484.55 $1,391.6 $1,394.2 $1,416.4 $1,496.9 $1,457.11 Total Sources ofFunds $1436.2 $1,398.4 $1,408.4 $1,426.0 $1,500.6 $1,460.8 Uses of Funds Expenditure Certificated Salaries $430.8 $425.3 $424.5 $437.0 $470.5 $443.5 Classified Salaries $248.5 $234.9 $229.2 $231.8 $222.3 $231.4 Employee Benefits $305.9 $299.3 $310.7 $325.2 $355.5 $335.4 Books and Supplies $10.1 $29.7 $24.1 $23.9 $27.8 $21.2 Other Operating Expenses $358.5 $322.0 $300.9 $315.3. $320.6 $326.0 SELPA Charter School Expenditures $43.4 $48.6 $51.2 $58.1 $61.9 $61.9 Capital Outlay $0.1 $0.3 $0.8 $0.1 $0.1 $0.1 Other Outgo $32.1 $24.2 $57.5 $345 $41.8 $38.9 Total Expenditure $1,429.4 $1,384.2 $1,398.9 $1,426.0 $1,500.6 $1,458,5 Ending Balance Restricted Ending Balances $6.8 $14.2 $9.5 $0.0 $0.0 $2.3 Assigned Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Unassigned Ending Balances Undesignated Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Ending Balance $6.8 $14.2 $9.5 $0.0 $0.0 $2.3 Total Uses. ofFunds $1,436.2 $1,3984 $1,4084 $1426.90 $1,5006 $1,460.8 EXHIBIT C - 124 Other Funds SUPERINTENDENT'S 2013-14 FINAL BUDGET Adult Education Fund- Unrestricted Programs (029/110) The Adult Education Fund-Unrestricted is mainly usedfor the operation of Community Adult Schools that serve adults and a small numberofconcurrently enrolled students. The Adult Regular Entitlementis part ofthe Tier II{ Categorical program list and has been considered Unrestricted since FY 2009-10 per SBX3 4. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts _ Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $0.2 $0.1 $0.1 $0.1 $0.1 $0.1 Committed Beginning Balances $42.3 $66.7 $3.6 $5.6 $4.8 $4.8 Undesignated/Unassigned Beginning Balances $3.3 $0.0 $0.0 $0.0 $0.0 $0.0 Audit Adjustments -$5.1 $0.0 $0.0 $0.0 $0.0 $0.0 Total Beginning Balance $40.7 $66.8 $3.7 $5.6 $4.9 $4.9 Revenue RevenueLimit Sources $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 State Revenues $0.0 $69.4 $128.9 $1.8 $1.6 $1.6 Local Revenues $1.9 $2.2 $1.7 $1.1 $1.0 $1.0 Interfund Transfers In $168.3 $0.0 $0.0 $60.0 $66.1 $66.1 Total Revenue $170.2 $71.6 $130.6 $62.9 $68.7 $68.7 TotalSources ofFunds $210.9 $138.4 $1343 $68.5 $73.6 $73.6 Uses of Funds Expenditure Certificated Salaries $69.6 $72.8 $64.6 $27.3 $29.7 $29.7 Classified Salaries $16.1 $16.8 $16.5 $9.6 $9.9 $9.9 Employee Benefits $33.1 $32.6 $33.0 $17.3 $18.1 $18.1 Books and Supplies $3.6 $5.0 $3.9 $4.4 $7.2 $7.2 Other Operating Expenses $4.0 $4.1 $3.6 $3.1 $4.2 $4.2 Capital Outlay $3.7 $0.7 $1.2 $1.0 $4.2 $4.2 Other Outgo $14.1 $2.8 $5.8 $1.0 $0.0 $0.0 Total Expenditure $144.1 $134.7 $128.7 $63.7 $73.5 $73.5 Ending Balance Non Spendable-Inventories, Cash, Others $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 Assigned Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Committed Ending Balances _ $66.7 $3.6 $5.6 $4.8 $0.0 $0.0 Undesignated/Unassigned Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Ending Balance $66.8 $3.7 $5.6 $4.9 $0.1 $0.1 Total Uses ofFunds $210.9 $138.4 $134.3 $68.5 $73.6 $73.6 79 EXHIBIT C - 126 SUPERINTENDENT'S 2013-14 FINAL BUDGET Adult Education Fund- Restricted Programs (029/110) The Adult Education Fund-Restricted consists of Specially Funded Programs for Adult Education students. 2009-10 2010-11 2011-12 »=2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Assigned Beginning Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Restricted Beginning Balances $0.0 $10.1 $7.8 $4.4 $0.0 $0.0 Total Beginning Balance $0.0 $10.1 $7.8 $4.4 $0.0 $0.0 Revenue Federal Revenues $17.5 $19.9 $16.6 $21.0 $23.3 $23.3 State Revenues $17.5 $6.2 $6.2 $6.2 $9.6 $9.6 Local Revenues $0.0 $0.2 $0.2 $0.1 $0.9 $0.9 Total Revenue $35.0 $26.2 $23.0 $27.3 $33.8 $33.8 Total Sources ofFunds $35.0 $36.3 $30.8 $31.7 $33.8 $33.8 Uses of Funds Expenditure Certificated Salaries $8.5 $9.9 $11.3 $11.1 $9.2 $9.2 Classified Salaries $5.1 $5.1 $4.5 $0.5 $0.4 $0.4 EmployeeBenefits $5.0 $4.9 $5.0 $4.8 $4.4 $4.4 Books and Supplies $5.8 $6.3 $4.6 $4.4 $13.6 $13.6 Other Operating Expenses $0.3 $2.1 $0.6 $0.1 $0.0 $0.0 Capital Outlay $0.0 $0.1 $0.1 $0.2 $0.0 $0.0 Other Outgo $0.1 $0.1 $0.1 $10.5 $6.2 $6.2 Total Expenditure $24.9 $28.5 $26.4 $31.7 $33.8 $33.8 Ending Balance Restricted Ending Balances $10.1 $7.8 $4.4 $0.0 $0.0 $0.0 Total Ending Balance $10.1 $7.8 $4.4 $0.0 $0.0 $0.0 TotalUses ofFunds $35.0 $36.3 $30.8 $31.7 $33.8 $33.8 1) EXHIBIT C - 127 SUPERINTENDENT'S 2013-14 FINAL BUDGET Child DevelopmentFund- Unrestricted Program (011/120) Child Development Fundprovideshalf day and full day programs. Fees are based on each family's ability to pay. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources ofFunds Beginning Balance Non Spendable-Inventories, Cash, Others $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 Restricted Beginning Balances $0.4 $0.0 $0.1 $0.1 $0.1 $0.1 Undesignated/Unassigned Beginning Balances $2.3 $0.0 $0.0 $0.0 $0.0 $0.0 Total Beginning Balance $2.8 $0.1 $0.1 $0.1 $0.1 $0.1 Revenue Federal Revenues $33.4 $59.6 $35.7 $27.0 $27.0 $27.0 State Revenues $82.2 $59.6 $71.5 $64.7 $69.8 $69.8 Local Revenues $3.0 $2.9 $2.9 $2.6 $2.7 $2.7 Interfund Transfers In $0.2 $8.0 $19.4 $14.3 $34.4 $34.4 Interprogram Transfers -$0.2 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $118.6 $130.2 $129.6 $108.6 $134.0 $134.0 TotalSources ofFunds $121.4 $130.2 $129.7 $108.7 $134.1 $134.1 Uses of Funds Expenditure Certificated Salaries $41.1 $44.1 $40.9 $32.4 $37.3 $37.3 Classified Salaries $39.5 $42.7 $40.0 $34.9 $41.1 $41.1 Employee Benefits $34.6 $38.4 $38.3 $33.9 $41.1 $41.1 Books and Supplies $1.7 $1.8 $1.5 $1.9 $7.5 $7.5 Other Operating Expenses $3.4 $3.1 $2.4 $2.5 $2.8 $2.8 Capital Outlay $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 Other Outgo $0.9 $0.0 $6.5 $3.1 $4.3 $4.3 Total Expenditure $1213 $130.1 $129.6 $108.6 $134.1 $134.1 Ending Balance Non Spendable-inventories, Cash, Others $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Restricted Ending Balances $0.0 $0.1 $0.1 $0.1 $0.0 $0.0 Undesignated/Unassigned Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Ending Balance $0.1 $0.1 $0.1 $0.1 $0.0 $0.0 TotalUses ofFunds $121.4 $130.2 $129.7 $108.7 $134.1 $134.1 81 EXHIBIT C - 128 SUPERINTENDENT'S 2013-14 FINAL BUDGET Child DevelopmentFund- Restricted Program (011/120) Child Development Fundare Specially Funded programsfor pre-schoolchildren. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions SourcesofFunds Beginning Balance Restricted Beginning Balances $0.4 $0.0 $0.0 $0.0 $0.3 $0.3 Total Beginning Balance $0.4 $0.0 $0.0 $0.0 $0.3 $0.3 Revenue Federal Revenues $0.0 $4.5 $0.1 $0.0 $25.8 $25.8 State Revenues $1.5 $0.4 $0.7 $1.0 $2.0 $2.0 Local Revenues $8.3 $10.1 $2.8 $2.3 $3.7 $3.7 Interprogram Transfers $0.2 $0.0 $0.0 $0.0 $0.0 $0.0 Other Financing Sources -$0.5 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $9.5 $15.0 $3.6 $3.3 $31.6 $31.6 Total Sources ofFunds $9.9 $15.0 $3.6 $3.3 $31.9 $31.9 Uses of Funds Expenditure Certificated Salaries $2.8 $5.6 $0.9 $1.4 $1.6 $1.6 Classified Salaries $1.8 $2.1 $1.1 $0.5 $0.6 $0.6 Employee Benefits $1.6 $2.4 $0.8 $0.8 $0.9 $0.9 Booksand Supplies $1.1 $1.7 $0.4 $0.3 $28.6 $28.6 Other Operating Expenses $2.2 - $2.4 $0.1 $0.0 $0.0 $0.0 Capital Outlay $0.0 $0.3 $0.0 $0.0 $0.0 $0.0 Other Outgo $0.3 $0.3 $0.2 $0.1 $0.2 $0.2 Total Expenditure $9.9 $15.0 $3.6 $3.0 $31.9 $31.9 Ending Balance Restricted Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Ending Balance $0.0 $0.0 $0.0 $0.3 $0.0 $0.0 Total Uses ofFunds $9.9 $15.0 $3.6 $3.3 $31.9 $31.9 EXHIBIT C - 129 SUPERINTENDENT'S 2013-14 FINAL BUDGET Cafeteria Fund (030/130) Cafeteria Fund providesal] school nutrition programs in elementary and secondary schools. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources ofFunds Beginning Balance Non Spendable-Inventories, Cash, Others $6.0 $5.2 $4.9 $13.1 $13.7 $13.7 Restricted Beginning Balances $0.0 $0.0 $3.8 $0.0 $0.0 $0.0 Undesignated/Unassigned Beginning Balances $0.0 $0.0 $0.0 $5.8 $0.0 $0.0 Total Beginning Balance $6.0 $5.2 $8.8 $18.9 $13.7 $13.7 Revenue Federal Revenues $245.5 $237.1 $221.4 $259.0 $259.2 $259.2 State Revenues $19.3 $19.3 $17.8 $17.9 $17.7 $17.7 Local Revenues $12.3 $9.5 $7.3 $6.1 $7.1 $7.1 Repayment* $0.0 $32.0 $88.6 $38.6 $0.0 $0.0 Support $12.2 $0.0 $0.0 $15.0 $62.9 $62.9 CIPR $0.0 $0.9 $0.9 $1.0 $2.3 $2.3 CMS Reimbursement $118 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $301.1 $298.9 $336.0 $337.5 $349.1 $349.1 TotalSources ofFunds $307.2 $304.1 $344.8 $356.3 $362.9 $362.9 Uses of Funds Expenditure Classified Salaries $965 $87.9 $88.4 $86.8 $85.7 $85.7 Employee Benefits $71.2 $69.8 $78.0 $81.4 ‘$83.0 $83.0 Books and Supplies $117.0 $126.1 $139.1 $160.4 $159.2 $159.2 Other Operating Expenses $6.8 $3.8 $3.8 $2.2 $8.2 $8.2 Capital Outlay $0.3 $0.9 $0.9 $1.7 $2.8 $2.8 Other Outgo $10.2 $6.8 $15.6 $10.2 $11.4 $114 Total Expenditure $302.0 $295.3 $325.9 $342.6 $350.4 $350.4 Ending Balance Non Spendable-Inventories, Cash, Others $5.2 $4.9 $13.1 $13.7 $12.4 $12.4 Restricted Ending Balances $0.0 $3.8 $0.0 $0.0 $0.0 $0.0 Undesignated/Unassigned Ending Balances $0.0 $0.0 $5.8 $0.0 $0.0 $0.0 Total Ending Balance $5.2 $8.8 $18.9 $13.7 $12.4 $12.4 Total Uses ofFunds $307.2 $304.1 $344.8 $356.3 $362.9 $362.9 * Repayment per MOU with CDE dated March 18, 2011 EXHIBIT C - 130 SUPERINTENDENT'S 2013-14 FINAL BUDGET Deferred Maintenance Fund (027/140) Deferred Maintenance Fundprovides for major maintenance projects including repair of plumbing, heating, air conditionin; electrical, roofing, floors, and interior or exterior paint. Fundingis half from the State andhalf from the District. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized * Estimated * Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $116.1 $45.6 $0.0 $0.0 $0.0 $0.0 Total Beginning Balance $116.1 $45.6 $0.0 $0.0 $0.0 $0.0 Revenue State Revenues $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Local Revenues $1.2 $0.4 $0.0 $0.0 $0.0 $0.0 Interfund TransfersIn $0.9 $0.3 $0.0 $0.0 $0.0 $0.0 Interprogram Transfers $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $2.1 $0.8 $0.0 $0.0 $0.0 $0.0 Total Sources ofFunds $118.2 $46.4 $0.0 $0.0 $0.0 $0.0 Uses of Funds Expenditure Classified Salaries $6.4 $5.2 $0.0 $0.0 $0.0 $0.0 Employee Benefits $3.0 $2.4 $0.0 $0.0 $0.0 $0.0 Books and Supplies $2.7 $1.7 $0.0 $0.0 $0.0 $0.0 Other Operating Expenses $57.0 $15.9 $0.0 $0.0 $0.0 $0.0 Capital Outlay $3.5 $2.7 $0.0 $0.0 $0.0 $0.0 Other Outgo $0.0 $18.5 $0.0 $0.0 $0.0 $0.0 TotalExpenditure $72.6 $46.4 $0.0 $0.0 $0.0 $0.0 Ending Balance Restricted Ending Balances $45.6 $0.0 $0.0 $0.0 $0.0 $0.0 Committed Ending Balances $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Ending Balance $45.6 $0.0 $0.0 $0.0 $0.0 $0.0 Total Uses ofFunds $118.2 $46.4 $0.0 $0.0 $0.0 $0.0 *This fund is closed. Prior year ending balancesare estimatedto be spent by June 30, 2012. EXHIBIT C - 131 SUPERINTENDENT'S 2013-14 FINAL BUDGET Building Fund - MeasureR (043/210) Measure R was a local bond measure approved by voters in March 2004. Thetotal value ofthe bond was$ 3,350 million. This fund is used for new schoolconstruction andrepairsto existing schools. Mostprojects also receive matchingState funds. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actua] 3rd Interim Authorized Estimated Amounts Amounts Amounts _ Estimate Amounts Amounts Regular Program Amounts in $millions Sources ofFunds Beginning Balance Non Spendable-Inventories, Cash, Others $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 Restricted Beginning Balances $359.0 $880.1 $741.9 $967.9 $772.8 $772.8 Undesignated/Unassigned Beginning Balanc $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Audit Adjustments $8.4 $0.0 $10.1 $0.0 $0.0 $0.0 Total Beginning Balance $367.8 $880.4 $752.3 $968.2 $773.1 $773.1 Revenue Local Revenues $9.0 $10.8 $17.8 $5.8 $6.6 $6.6 Interfund Transfers In $65.0 $106.2 $514.2 $54.2 $0.0 $0.0 Other Financing Sources $1,034.8 $0.0 $0.0 $0.0 $235.2 $235.2 Total Revenue $1,108.8 $117.0 $532.0 $60.1 $241.8 $241.8 TotalSources ofFunds $1,476.6 $997.4 $1,284.2 —$1,028.3 —-$1,0149 ~——-$1,014.9 Uses ofFunds Expenditure Classified Salaries $21.3 $22.2 $34.3 $30.4 $22.1 $22.1 Employee Benefits $8.7 $10.0 $15.0 $12.7 $9.0 $9.0 Books and Supplies $0.9 $1.4 $3.4 $1.6 $2.6 $2.6 Other Operating Expenses $17.0 $24.6 $27.4 $19.9 $21.2 $21.2 Capital Outlay $530.6 $187.3 $208.9 $153.2 $959.7 $559.3 Other Outgo $17.5 $9.7 $27.1 $37.3 $0.0 $0.0 Total Expenditure $596.2 $255.2 $316.0 $255.2 $1,014.6 $614.2 Ending Balance Non Spendable-Inventories, Cash, Others $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 Restricted Ending Balances $880.1 $741.9 $967.9 $772.8 $0.0 $400.4 Total Ending Balance $880.4 $742.2 $968.2 $773.1 $0.3 $400.7 Total Uses ofFunds $1,476.6 $997.4 — $1,284.2 —$1,028.3 $1,014.99 —-$1,014.9 85 EXHIBIT C - 132 SUPERINTENDENT'S 2013-14 FINAL BUDGET Building Fund- Proposition BB (045/211) Prop BB was local bondissue approvedbyvotersin April 1997. This fundis used for construction of new schools and repair and modernization ofexisting schools, often with State matching funds. There is $ 0 million of unused authority. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amountsin $millions Sources ofFunds Beginning Balance Non Spendable-Inventories, Cash, Others $3.0 $3.0 $3.0 $3.0 $3.0 $3.0 Restricted Beginning Balances $73.2 $31.9 $20.6 $18.2 $21.1 $21.1 Audit Adjustments $0.0 $0.0 -$0.1 $0.0 $0.0 $0.0 Total Beginning Balance $76.2 $34.9 $23.5 $21.2 $24.1 $24.1 Revenue Local Revenues $1.1 $0.5 $0.4 $0.3 $0.1 $0.1 Interfund Transfers In $21.9 $16.6 $24.4 $33.6 $0.0 $0.0 Total Revenue $23.0 $17.2 $24.7 $33.9 $0.1 $0.1 Total Sources ofFunds $99.2 $52.0 $48.2 $55.0 $24.1 $24.1 Uses ofFunds Expenditure Classified Salaries $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 Employee Benefits $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Books and Supplies $0.0 $0.0 $0.0 $0.2 $0.0 $0.0 Other Operating Expenses -$0.9 $0.0 $0.1 $0.4 -$3.3 -$3.3 Capital Outlay $11.2 $3.4 $1.0 $1.5 $22.0 $22.0 Other Outgo $53.8 $25.0 $25.9 $28.8 $2.4 $2.4 Total Expenditure $64.3 $28.5 $27.1 $30.9 $21.1 $21.1 Ending Balance Non Spendable-Inventories, Cash, Others $3.0 $3.0 $3.0 $3.0 $3.0 $3.0 Restricted Ending Balances $31.9 $20.6 $18.2 $21.1 $0.0 $0.0 Total Ending Balance $34.9 $23.6 $21.2 $24.1 $3.0 $3.0 Total Uses ofFunds $99.2 $52.0 $48.2 $55.0 $24.1 $24.1 EXHIBIT C - 133 SUPERINTENDENT'S 2013-14 FINAL BUDGET Building Fund (070/212) The Building Fundis used to accountfor proceeds from thesale of bonds,state allowances, and other resources designated for facility expansion. Regular Program 2009-10 2010-11 2011-12 §=2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts’ Estimate Amounts Amounts Amounts in $millions Sources ofFunds Beginning Balance Restricted Beginning Balances $2.5 $2.0 $2.0 $1.4 $1.4 $1.4 Audit Adjustments $0.0 $0.0 -$0.2 $0.0 $0.0 $0.0 Total Beginning Balance $2.5 $2.0 $1.8 $1.4 $1.4 $1.4 Revenue Local Revenues $0.2 $0.3 $0.4 $0.1 $0.7 $0.7 Total Revenue $0.2 $0.3 $0.4 $0.1 $0.7 $0.7 Total Sources ofFunds $2.6 $2.3 $2.1 $15 $2.1 $2.1 Uses ofFunds Expenditure Other Operating Expenses $0.3 $0.0 $0.3 $0.0 $0.0 $0.0 Capital Outlay $0.3 $0.3 $0.4 $0.1 $2.1 $2.1 Other Outgo $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Expenditure $0.7 $0.3 $0.7 $0.1 $2.1 $2.1 Ending Balance Restricted Ending Balances $2.0 $2.0 $1.4 $1.4 $0.0 $0.0 Total Ending Balance $2.0 $2.0 $1.4 $1.4 $0.0 $0.0 Total Uses ofFunds $2.6 $2.3 $2.1 $1.5 $2.1 $2.1 87 EXHIBIT C - 134 SUPERINTENDENT'S 2013-14 FINAL BUDGET Building Fund - MeasureK (044/213) This fund is used for new school construction and repair and modernization ofexisting schools. Measure K wasa local bond issue passedby voters in November 2002. Mostprojects also receive a State match. There is $ 750 million of unused authority. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $193.3 $353.8 $270.0 $273.4 $305.4 $305.4 Audit Adjustments $4.7 $0.0 $9.0 $0.0 $0.0 $0.0 Total Beginning Balance $198.0 $353.8 $279.0 $273.4 $305.4 $305.4 Revenue Local Revenues $4.6 $4.3 $2.6 $1.7 $1.6 $1.6 Interfund Transfers In $17.5 $36.3 $78.6 $96.3 $0.0 $0.0 Other Financing Resources $350.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $372.2 $40.6 $81.2 $98.0 $1.6 $1.6 Total Sources ofFunds $570.2 $394.4 $360.2 $371.4 $306.9 $306.9 Uses ofFunds Expenditure Classified Salaries $6.0 $2.3 $3.9 $3.1 $24.3 $24.3 Employee Benefits $2.7 $1.0 $1.6 $0.9 $11.9 $11.9 Books and Supplies $0.8 $0.4 © $1.1 $0.4 $0.0 $0.0 Other Operating Expenses $2.1 $4.9 $1.6 $1.3 $37.3 $37.3 Capital Outlay $203.4 $110.6 $64.8 $43.6 $233.4 $121.0 Other Outgo $1.5 $5.1 $13.7 $16.6 $0.0 $0.0 Total Expenditure $216.4 $124.4 $86.8 $66.0 $306.9 $194.5 Ending Balance Restricted Ending Balances $353.8 $270.0 $273.4 $305.4 $0.0 $112.4 Total Ending Balance $353.8 $270.0 $273.4 $305.4 $0.0 $112.4 Total Uses ofFunds $570.2 $394.4 $360.2 $371.4 $306.9 $306.9 88 EXHIBIT C - 135 SUPERINTENDENT'S 2013-14 FINAL BUDGET Building Fund - Measure Y (042/214) Measure Y was a local bond issue approvedby voters in November 2005. Thetotaldollar value of the bond was $ 3,985 million. This fundis used for school construction and modernization, with a goal of returningall schoolsto a traditional calendar. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 Restricted Beginning Balances $89.3 $2,223.1 $1,763.7 $843.4 $635.3 $635.3 Audit Adjustments $1.2 $0.0 $1.4 $0.0 $0.0. $0.0 Total Beginning Balance $91.0‘ $2,223.6 —-$1,765.6 $843.9 $635.8 $635.8 Revenue Local Revenues $17.1 $26.3 $23.3 $3.1 $11.2 $11.2 Interfund Transfers In $1.8 $240.0 $51.0 $106.1 $0.0 $0.0 Other Financing Sources $2,697.9 $0.0 $0.0 $0.0 $442.8 $442.8 Total Revenue $2,716.7 $266.4 $74.4 $109.2 $454.0 $454.0 TotalSources ofFunds -$2,807.7 $2,489.9 $1,840.0 $953.0 $1,089.7 $1,089.7 Uses ofFunds Expenditure Classified Salaries $24.2 $17.1 — $16.8 $13.1 $45.5 $45.5 Employee Benefits $13.3 $8.1 $8.8 $4.1 $20.6 $20.6 Books and Supplies $1.6 — $1.8 $6.5 $3.6 $2.8 $2.8 Other Operating Expenses $11.0 $56.5 $9.0 $15.7 $0.2 -$0.2 Capital Outlay $521.8 $572.5 $498.9 $231.7 $1,018.2 $571.5 Other Outgo $12.3 $69.8 $456.2 $49.1 $2.3 $2.3 Total Expenditure $584.2 $725.7 $996.1 $317.3 $1,089.2 $642.5 Ending Balance Non Spendable-Inventories, Cash, Others $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 Restricted Ending Balances $2,223.1 $1,763.7 $843.4 $635.3 $0.0 $446.7 Total Ending Balance $2,223.6 _$1,764.2 $843.9 $635.8 $0.5 $447.2 Total Uses ofFunds $2,807.77 _ $2,489.9 —-$1,840.0 $953.0 _-$1,089.7 ——$1,089.7 89 EXHIBIT C - 136 CAPITAL FUND SUPERINTENDENT'S 2013-14 FINAL BUDGET County School Facilities Fund This is fund is a consolidation of all County Facilities Fund. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actua] 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $478.7 $501.6 $701.5 $505.0 $494.3 $494.3 Audit Adjustments $56.0 $0.0 $11.1 $0.0 $0.0 $0.0 Total Beginning Balance $534.7 $501.6 $712.5 $505.0 $494.3 $494.3 Revenue State Revenues $289.0 $768.6 $88.1 $236.2 $35.6 $35.6 Local Revenues $9.1 $10.3 $6.0 $3.2 $3.7 $3.7 Interfund Transfers In $31.3 $27.0 $37.5 $129.2 $0.0 $0.0 Total Revenue $329.4 $805.8 $131.6 $368.6 $39.3 $39.3 TotalSources ofFunds $864.1 — $1,307.4 $844.1 $873.6 $533.6 $533.6 Uses of Funds Expenditure Classified Salaries $0.3 $0.1 $0.2 $0.2 $0.0 $0.0 Employee Benefits $0.1 $0.1 $0.1 $0.1 $0.0 $0.0 Books and Supplies $0.2 $0.1 $0.2 $0.1 $0.0 $0.0 Other Operating Expenses $0.1 $0.1 $0.3 $0.7 $0.0 $0.0 Capital Outlay $324.8 $243.9 $142.5 $88.3 $533.6 $456.1 Other Outgo $37.1 $361.6 $195.9 $290.0 $0.0 $0.0 Total Expenditure $362.5 $605.9 $339.1 $379.3 $533.6 $456.1 Ending Balance Restricted Ending Balances $501.6 $701.5 $505.0 $494.3 $0.0 $77.5 Total Ending Balance $501.6 $701.5 $505.0 $494.3 $0.0 $77.5 TotalUses ofFunds $864.1 $1,307.4 $844.1 $873.6 $533.6 $533.6 EXHIBIT C - 137 SUPERINTENDENT'S 2013-14 FINAL BUDGET Special Reserve Fund - CRA (017/400) This fund is used for school construction projects paid from Community RedevelopmentAgency funds. 2009-10 2010-11 2011-12 =.2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Regular Program Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $8.9 $10.3 $10.7 $19.7 $7.0 $7.0 Total Beginning Balance $8.9 $10.3 $10.7 $19.7 $7.0 $7.0 Revenue Local Revenues $6.2 $5.5 $9.9 $7.8 $7.8 $7.8 Total Revenue $6.2 $5.5 $9.9 $7.8 $7.8 $7.8 Total Sources ofFunds $15.1 $15.8 $20.6 $27.5 $14.8 $14.8 Uses ofFunds Expenditure Classified Salaries $0.0 $0.0 $0.0 $4.1 $3.4 $3.4 Employee Benefits $0.0 $0.0 $0.0 $1.4 $1.7 $1.7 Books and Supplies $0.0 $0.0 $0.0 $10.1 $0.0 $0.0 Other Operating Expenses $0.3 $0.1 $0.8 $2.9 $0.1 $0.1 Capital Outlay $0.1 $1.0 $0.0 $2.0 $9.5 $9.5 Other Outgo $4.3 $4.0 $0.0 $0.0 $0.0 $0.0 Totat Expenditure $4.8 $5.1 $0.9 $20.5 $14.8 $14.8 Ending Balance Restricted Ending Balances $10.3 $10.7 $19.7 $7.0 $0.0 | $0.0 Total Uses ofFunds $10.3 $10.7 $19.7 $7.0 $0.0 $0.0 Total Uses ofFunds $15.4 $15.8 $20.6 $27.5 $14.8 $14.8 91 EXHIBIT C - 138 SUPERINTENDENT'S 2013-14 FINAL BUDGET Special Reserve Fund (015/401) This fund mainly providesfor buildings and capital improvements to relieve overcrowdedschools. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources ofFunds Beginning Balance Restricted Beginning Balances $185.9 $100.4 $120.8 $137.4 $93.0 $93.0 Audit Adjustments ($2.1) $0.0 -$3.1 $0.0 $0.0 $0.0 Total Beginning Balance $183.8 $100.4 $117.7 $137.4 $93.0 $93.0 Revenue Federal Revenues $0.0 $0.0 $0.0 $1.2 $1.2 $1.2 State Revenues -$23.1 $5.2 $0.0 $0.0 $0.0 $0.0 Local Revenues $4.3 $11.3 $46.6 $14.0 $44.6 $44.6 Interfund Transfers In $3.3 $1.0 $7.9 $2.7 $0.0 $0.0 Other Financing Sources $116.6 $85.8 $177.2 $0.0 $0.0 $0.0 Total Revenue $101.0 $103.3 $231.7 $17.8 $45.7 $45.7 Total Sources ofFunds $284.8 $203.7 $349.3 $155.3 $138.7 $138.7 Uses ofFunds Expenditure Classified Salaries $0.8 $0.4 $0.3 $0.3 $0.0 $0.0 Employee Benefits $0.3 $0.2 $0.1 $0.1 $0.0 $0.0 Books and Supplies $0.4 $0.2 $0.3 $1.5 $0.0 $0.0 Other Operating Expenses $2.6 $2.9 $3.0 $1.0 $0.0 $0.0 Capital Outlay $30.2 $12.7 $29.8 $40.8 $123.5 $94.1 Other Outgo $150.2 $66.5 $178.4 $18.5 $15.2 $15.2 Total Expenditure $184.4 $83.0 $211.9 $62.3 $138.7 $109.3 Ending Balance Restricted Ending Balances $100.4 $120.8 $137.4 $93.0 $0.0 $29.4 Total Ending Balance $100.4 $120.8 $137.4 $93.0 $0.0 $29.4 Total Uses ofFunds $284.8 $203.7 $349.3 $155.3 $138.7 $138.7 EXHIBIT C - 139 SUPERINTENDENT'S 2013-14 FINAL BUDGET Special Reserve Fund - FEMA (022/402) This fundis for fundsreceived from the Federal Emergency ManagementAgency, mainlyto repair earthquake damagefrom the the 1994 Northridge earthquake. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts _ Estimate Amounts Amounts Regular Program Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 Total Beginning Balance $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 Revenue Federal Revenues $0.0 $0.0 $0.0 $0.0 $5.7 $5.7 State Revenues $0.0 $0.0 $0.0 $0.0 $0.6 $0.6 Total Revenue $0.0 $0.0 $0.0 $0.0 $6.3 $6.3 Total Sources ofFunds $0.2 $0.2 $0.2 $0.2 $6.5 $6.5 Uses of Funds Expenditure Other Operating Expenses $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Total Expenditure $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Ending Balance Restricted Ending Balances $0.2 $0.2 $0.2 $0.2 $6.5 $6.5 Total Ending Balance $0.2 $0.2 $0.2 $0.2 $6.5 $6.5 Total Uses ofFunds $0.2 $0.2 $0.2 $0.2 $6.5 $6.5 EXHIBIT C - 140 SUPERINTENDENT'S 2013-14 FINAL BUDGET Special Resv Fund - FEMA- HazMit (062/403) This fundis used for fundsreceived from the Federal Emergency ManagementAgency to reduce hazards. District matching funds are required.In the past, these funds have been used mainly to replace pendant lighting and suspended ceilings in schools. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts __ Estimate Amounts Amounts Amounts in $millions Sources ofFunds Beginning Balance Restricted Beginning Balances $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 Total Beginning Balance $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 Total Sources ofFunds $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 Uses ofFunds Ending Balance Restricted Ending Balances $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 Total Ending Balance $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 Total Uses ofFunds $2.0 $2.0 $2.0 $2.0 $2.0 $2.0 EXHIBIT C - 141 SUPERINTENDENT'S 2013-14 FINAL BUDGET Capital Facilities Acct Fund (073/250) This fund is used to account for developer fees levied on new residential, commercialor industrial projects within the District's boundaries. Revenues, which may vary widely from yearto year, are used for the construction of new schoolfacilities Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $68.3 $49.0 $24.1 $52.0 $70.1 $70.1 Audit Adjustments $2.8 $0.0 $1.4 $0.0 $0.0 $0.0 Total Beginning Balance $71.1 $49.0 $25.5 $52.0 $70.1 $70.1 Revenue Local Revenues $19.8 $33.1 $41.6 $31.5 $33.2 $33.2 Interfund Transfers In $0.3 $0.2 $0.0 $11.8 $0.0 $0.0 Total Revenue $20.2 $33.3 $41.6 $43.3 $33.2 $33.2 Total Sources ofFunds $91.3 $82.3 $67.1 $95.4 $103.3 $103.3 Uses ofFunds Expenditure Classified Salaries $0.3 $0.3 $0.3 $0.4 $0.4 $0.4 Employee Benefits $0.1 $0.1 $0.1 $0.2 $0.2 $0.2 Books and Supplies $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Other Operating Expenses $0.5 $0.5 $0.6 $0.4 $71.6 $40.6 Capital Outlay $29.3 $46.5 $4.1 $14.1 $21.5 $21.5 Other Outgo $12.2 $10.8 $9.9 $10.3 $9.6 $9.6 TotalExpenditure $42.3 $58.2 $15.1 $25.3 $103.3 $72.3 Ending Balance Restricted Ending Balances $49.0 $24.1 $52.0 $70.1 $0.0 $31.0 Total Ending Balance $49.0 $24.1 $52.0 $70.1 $0.0 $31.0 Total Uses ofFunds $91.3 $82.3 $67.1 $95.4 $103.3 $103.3 95 EXHIBIT C - 142 SUPERINTENDENT'S 2013-14 FINAL BUDGET State Sch Bldg Lease/Purch Fund (074/300) This fund is used for school construction projects to relieve overcrowding. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $0.0 $3.0 $4.3 $4.3 $5.1 $5.1 Total Beginning Balance $0.0 $3.0 $4.3 $4.3 $5.1 $5.1 Revenue State Revenues $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Local Revenues $0.3 $0.3 $0.4 $0.8 $0.0 $0.0 Interfund Transfers In $3.1 $1.2 $0.2 $0.2 $0.0 $0.0 Total Revenue $3.4 $1.5 $0.6 $1.0 $0.0 $0.0 Total Sources ofFunds $3.4 $4.5 $4.9 $5.3 $5.1 $5.1 Uses of Funds Expenditure Books and Supplies $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Capital Outlay $0.2 $0.1 $0.6 $0.2 $5.1 $5.1 Other Outgo $0.2 $0.1 $0.0 $0.0 $0.0 $0.0 Total Expenditure $0.4 $0.2 $0.6 $0.2 $5.1 $5.1 Ending Balance Restricted Ending Balances $3.0 $4.3 $4.3 $5.1 $0.0 $0.0 Total Ending Balance $3.0 $4.3 $43 $5.1 $0.0 $0.0 TotalUses ofFunds $3.4 $4.5 $4.9 $5.3 $5.1 $5.1 EXHIBIT C - 143 SUPERINTENDENT'S 2013-14 FINAL BUDGET Bond Interest & Redemption Fund (004/510) This fund provides principal and interest payments on outstanding local bonds approved by voters. The source of revenues is local property taxes. 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Regular Program Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $489.4 $630.8 $724.6 $689.9 $707.6 $707.6 Audit Adjustment $0.0 $0.0 $0.0 -$8.3 $0.0 $0.0 Total Beginning Balance $489.4 $630.8 $724.6 $681.6 $707.6 $707.6 Revenue Federal Revenues $29.2 $76.3 $45.2 $73.8 $73.8 $73.8 State Revenues $4.9 $5.9 $5.3 $5.8 $5.4 $5.4 Local Revenues $710.6 $857.5 $776.5 $848.5 $796.5 $796.5 Other Financing Sources $242.7 $0.0 $0.0 $0.0 $0.0 $0.0 Total Revenue $987.4 $939.7 $827.0 $928.0 $875.7 $875.7 Total Sources ofFunds $1,4767 $1,5705 $1,551.6 _$1,609.6 ~——-$1,583.3_-$1,583.3 Uses ofFunds Expenditure Other Outgo $845.9 $845.9 $861.7 $902.0 $1,583.3 $979.3 Total Expenditure $845.9 $845.9 $861.7 $902.0 $1,583.3 $979.3 Ending Balance Restricted Ending Balances $630.8 $724.6 $689.9 $707.6 $0.0 $604.0 Total Ending Balance $630.8 $724.6 $689.9 $707.6 $0.0 $604.0 Total Uses ofFunds $1,476.7 $1,570.55 —*$1,5516 $1,609.6 —$1,583.3 —-$1,583.3 97 EXHIBIT C - 144 SUPERINTENDENT'S 2013-14 FINAL BUDGET Tax Override Fund (005/530) This fund repays indebtednessresulting from earlier tax levies. The total debtto berepaid is $0.59 million. The repayment schedule ended June 30, 2010. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $0.2 $0.3 $0.3 $0.3 $0.3 $0.3 Total Beginning Balance $0.2 $0.3 $0.3 $0.3 $0.3 $0.3 Total Sources ofFunds $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 Uses ofFunds Expenditure Other Outgo $0.0 $0.0 $0.0 $0.0 $0.3 $0.3 Total Expenditure $0.0 $0.0 $0.0 $0.0 $0.3 $0.3 Ending Balance Restricted Ending Balances $0.3 $0.3 $0.3 $0.3 $0.0 $0.0 Total Ending Balance $0.3 $0.3 $0.3 $0.3 $0.0 $0.0 Total Uses ofFunds $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 98 EXHIBIT C - 145 SUPERINTENDENT'S 2013-14 FINAL BUDGET Capital Services Fund (071/560) This fund is used to repay Certificates of Participation (COPs). COPs are funds borrowed for capital projects where bond financingis not available. Repaymentis from general purpose fundsorother funds such as developerfees. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Restricted Beginning Balances $65.1 $72.4 $81.8 $59.4 $54.4 $54.4 Total Beginning Balance $65.1 $72.4 $81.8 $59.4 $54.4 $54.4 Revenue Federal Revenues $0.0 $0.0 $0.6 $0.6 $0.5 $0.5 Local Revenues $1.1 $1.2 $0.9 $0.2 $0.2 $0.2 Interfund Transfers In $123.1 $46.4 $222.3 $41.2 $46.6 $46.6 Total Revenue $124.3 $47.6 $223.8 $42.0 $47.4 $47.4 Total Sources ofFunds $189.4 $119.9 $305.6 $101.4 $101.8 $101.8 Uses ofFunds Expenditure Other Outgo $117.0 $38.1 $246.2 $47.0 $46.3 $46.3 Total Expenditure $117.0 $38.1 $246.2 $47.0 $46.3 $46.3 Ending Balance Restricted Ending Balances $72.4 $81.8 $59.4 $54.4 $55.5 $55.5 Total Ending Balance $72.4 $81.8 $59.4 $54.4 $55.5 $55.5 Total Uses ofFunds | $189.4 $119.9 $305.6 $101.4 $101.8 $101.8 99 EXHIBIT C - 146 SUPERINTENDENT'S 2013-14 FINAL BUDGET Health & Welfare Benefits Fund (021/670) This fund provides insurance or reimbursementfor medical, vision, and dental care for qualified employeesandretirees, plus costs of administration. Costs for such benefits have been growingfaster than revenues. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $9.5 $9.4 $9.4 $0.0 $0.0 $0.0 . Restricted Beginning Balances -$0.1 $86.8 $202.2 $297.8 $317.7 $317.7 Total Beginning Balance $9.4 $96.2 $211.6 $297.8 $317.7 $317.7 Revenue Local Revenues $940.5 $940.9 $931.7 $918.7 $943.7 $943.7 Interfund Transfers In $12.6 $11.0 $11.1 $9.2 $9.2 $9.2 Total Revenue $953.2 $951.8 $942.8 $927.9 $952.9 $952.9 Total Sources ofFunds $962.5 $1,048.0 $1,154.4 — $1,225.7 $1,270.6 _ $1,270.6 Uses ofFunds Expenditure Classified Salaries $1.8 $1.6 $1.6 $2.3 $1.9 $1.9 Employee Benefits $0.9 $0.8 $0.9 $1.3 $1.1 $1.1 Books and Supplies $0.2 $0.2 $0.2 $0.2 $0.0 $0.0 Other Operating Expenses $863.5 $833.8 $854.0 $904.3 $949.7 $949.7 Total Expenditure $866.3 $836.4 $856.6 $908.0 $952.7 $952.7 Ending Balance Non Spendable-Inventories, Cash, Others $9.4 $9.4. $0.0 $0.0 $0.0 $0.0 Restricted Ending Balances $86.8 $202.2 $297.8 $317.7 $317.9 $317.9 Total Ending Balance $96.2 $211.6 $297.8 $317.7 $317.9 $317.9 Total Uses ofFunds $962.5 —_-$1,048.0 ——$1,154.4 —$1,225.7_ —s$1,270.6 ~—- $1,270.6 100 EXHIBIT C - 147 SUPERINTENDENT'S 2013-14 FINAL BUDGET Workers’ Compensation Fund (013/671) This internalservice fund makes medical and other payments to employees whowereinjuredin the course oftheir employment with the District plus the necessary cost of administering the fund. Revenues come from each fundthat has employees. Actual Actual Actual 3rd Interim Authorized Estimated Amounts Amounts Amounts Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $2.0 $2.0 $2.0 $0.0 $0.0 $0.0 Restricted Beginning Balances $25.1 $62.6 $33.3 $2.8 $2.0 $2.0 Total Beginning Balance $27.1 $64.6 $35.3 $2.8 $2.0 $2.0 Revenue Local Revenues $116.2 $53.6 $82.2 $106.3 $101.9 $101.9 Total Revenue $116.2 $53.6 $82.2 $106.3 $101.9 $101.9 Total Sources ofFunds $143.3 $118.2 $117.5 $109.1 $103.9 $103.9 Uses ofFunds Expenditure Classified Salaries $3.5 $3.3 $2.8 $2.8 $3.1 $3.1 Employee Benefits $1.9 $1.5 $1.5 $1.4 $1.6 $1.6 Books and Supplies $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 Other Operating Expenses $73.3 $78.2 $110.5 $102.9 $97.1 $97.1 Total Expenditure $78.7 $82.9 $114.8 $107.1 $101.8 $101.8 Ending Balance Non Spendable-Inventories, Cash, Others $2.0 $2.0 $0.0 $0.0 $0.0 $0.0 Restricted Ending Balances $62.6 $33.3 $2.8 $2.0 $2.1 $2.1 Total Ending Balance $64.6 $35.3 $2.8 $2.0 $2.1 $2.1 Total Uses ofFunds $143.3 $118.2 $117.5 $109.1 $103.9 $103.9 101 EXHIBIT C - 148 SUPERINTENDENT'S 2013-14 FINAL BUDGET Liability Self-Insurance Fund (016/672) This fund providesresourcesforliability claims and judgments againstthe District, and the cost ofadministering them. Regular Program 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 Actual Actual Actual 3rdInterim Authorized Estimated Amounts Amounts Amounts __ Estimate Amounts Amounts Amounts in $millions Sources of Funds Beginning Balance Non Spendable-Inventories, Cash, Others $4.4 $4.0 $3.6 $0.0 $0.0 $0.0 Restricted Beginning Balances $0.0 $0.0 $0.0 $3.2 $2.8 $2.8 Total Beginning Balance $4.4 $4.0 $3.6 $3.2 $2.8 $2.8 Revenue Local Revenues $40.4 $12.0 $30.3 $67.8 $21.2 $21.2 Total Revenue $40.4 $12.0 $30.3 $67.8 $21.2 $21.2 Total Sources ofFunds $44.8 $16.0 $33.9 $71.0 $24.0 $24.0 UsesofFunds Expenditure Certificated Salaries $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 Classified Salaries $1.2 $1.1 $0.9 $0.8 $1.1 $1.1 Employee Benefits $0.6 $0.5 $0.5 $0.5 $0.6 $0.6 Books and Supplies $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 Other Operating Expenses $38.9 $10.6 $29.1 $66.7 $19.3 $19.3 Total Expenditure $40.8 $12.4 $30.7 $68.2 $21.2 $21.2 Ending Balance Non Spendable-Inventories, Cash, Others $4.0 $3.6 $0.0 $0.0 $0.0 $0.0 Restricted Ending Balances $0.0 $0.0 $3.2 $2.8 $2.8 $2.8 Total Ending Balance $4.0 $3.6 $3.2 $2.8 $2.8 $2.8 Total Uses ofFunds $44.8 $16.0 $33.9 $71.0 $24.0 $24.0 102 EXHIBIT C - 149 APPENDICES INTRODUCTION This Section provides informationrelated to a numberofareas ofimportance with regard to the District’s budget for the 2013-14 fiscal year. Includedin this Section are the following: Appendix A — Frequently Asked Questions. This section provides questions and answers regarding the District’s Final Budget. Appendix B ~ Budget Principles and Processes. This section explains the District’s general principles used in preparing its budget, and the process for developing and amending the budget. Appendix C — How Education is Funded in California. This section provides detail on how California funds its schools, and information on the state’s K-12 education finance lawssince the 1970s. Appendix D — Average Daily Attendance (ADA). Thesepages provide information - regarding Average Daily Attendance (ADA). The State uses ADAto allocate many funding sourcesto local schooldistricts. ADA is based on actual in-seat attendance, and attendance credit. The pagereflects information regarding estimated 2012-13 and 2013-14 funded ADA. Appendix E — Revenue Limit Information. The RevenueLimitis the single largest unrestricted funding source for California schooldistricts. These pages provide details on the basis of revenue from the Revenue Limit and the categorical programsassociated with the Revenue Limit such as SupplementalInstructional Hourly Programs, Special Education, Community Day Schools, Adult Education, Regional Occupational Centers/Program, and Apprenticeship Program. Appendix F — Revenues and Uses of Tier II] Categorical Program Funds. This section provides information about the proposed use ofTier III Categorical Program Funds. In 2009, the state budget approved bythelegislature allowed schooldistricts to redirect funding in Tier III programsto any other educational purposeovera five-year period ending July 1, 2013. In 2011 the date was extended to July 1, 2015. Appendix G - School Staff and Resources. These pages provide information on the staffing of District schools, based on existing allocation formulas. This information is provided for elementary and secondary schools, magnet schools, options schools, special education schools _ and programs,adult schools, regional occupational centers and programs, and other schools for whichthe District allocates positions and other resources. This section also includes information ontheallocation of support staff, instructional materials, and other supplies to District schools. 103 EXHIBIT C - 150 Appendix H — Enrollment Trends. This section provides information on District enrollment trends. The District uses data on live births in Los Angeles County andhistorical grade retention ratios, as well as economic factors and other relevant information, to project enrollment. Estimated enrollments in grades 1 through 12 for the 2013-14 through 2015-16 schoolyears are calculated using variousscenarios, generally involving weighted and true averages. The grade retention ratio uses past trends to estimate student progressto the next grade level. Enrollments in kindergarten are calculated as a percentage oflive births in Los Angeles County five years earlier. Separate Enrollmentcharts are provided fot regular District schools, fiscally independentcharter schools and total districtwide enrollment. Appendix I — Budget and Finance Policy. These pages provide the complete text ofthe District’s Budget and Finance Policy, as adopted by the Board ofEducation in June 2004, Appendix J — District Debt ManagementPolicy. These pages provide the complete text of the District’s Debt ManagementPolicy, as adopted by the Board of Education. Appendix K — Capital Budget. This page provides a hyperlink for information regarding the District’s capital facilities plan and other major capital expenditures anticipated during the next several years. Appendix L - Notes. These pages provide information regarding a numberofitems throughout the budget. Appendix M - Glossary and Abbreviations. These pages provide definitions of terms and abbreviations appearing throughoutthe budget document. 104 EXHIBIT C - 151 APPENDIX A FREQUENTLY ASKED QUESTIONS This document showsestimated 2013-14 revenues and expendituresfor all Fundsofthe District, assuming that current District policies are continued. We have provided historical and projected information for the District’s Funds, for the District Defined Programswithin the General Fund, and by object of expenditure. The following are answers to frequently asked questions aboutthe budget. Which resources are in the Unrestricted General Fund, and which are not? The Unrestricted General Fund includes mostofthe District’s K-12 operating programs. For example,it includes: Funding for teachers, administrators, clerical, and custodial staff at schools. Fundingfor Regional Occupational Centers and Programsthat provide career- oriented courses. Funding for recreation-oriented after-school programs. Funding for the administration of the District, including general management, finance, information technology and human resources. The Restricted General Fund includesthe following resources: State and federal categorical funds for low-income, low-achieving, or limited- English-proficientstudents, including Title I (Socioeconomically Disadvantaged), Title II A (High Quality Teachers), and Title II (English leamers). Funding for the District’s special education program. Funding for school maintenance, such as repairs. Funding for school breakfasts and lunches. State and federal funding for instructionally-oriented before- and after-school programs. Funding for adult education and for early childhood education programs conducted at children’s centers. Capital funds, such as bond funds for school construction, and funds that pay principal and interest on bonded indebtedness. Does the Revised Budget include an estimate of student enrollment? Yes. The Los Angeles Unified School District uses data on live births in Los Angeles County andhistorical grade retention ratios, as well as economic factors andother relevant information, to project enrollment. Estimated enrollments in grades 1 through 12 are calculated using a variety of scenarios, generally involving weighted and true averages. The graderetention ratio measures the percentage of students expected to progress to the next grade level from oneyear to the next, based on past trends. Enrollments in kindergarten are calculated as a percentageoflive births in Los Angeles Countyfive years earlier. * 105 EXHIBIT C - 152 ‘Whatdoesit mean to be a “deelining enrollment” district? Enrollment peaked in 2002-03 at 746,831, and has declined each year since, This decline is due to several factors, including reduced birth rates in Los Angeles County, and cost-of-living increases, including housing, in southern California, Declining enrollmentaffects both revenue and expenditures. However, declining enrollment typically causes a more rapid decline in reveaucs following the first year, in which declining enrollment districts are essentially “held harmless”for the decline, fn addition, the increase in percentage of students cnrolled in independent charter schools contributes to the change in revenue and expenditures Districtwide, How docharter schoolsimpact District enroliment projections? The fiscally-independent charter school data include both schools that have converted from non-charterto fiscally-independent charter school status (“conversion charters”) and schools that began their existence as fiscally-independent charter schools (“‘start- up charters"). ‘The chart below showstheincrease in the percentage ofstudents enrolled in independent charter schools over the last decade, 00200 >o0,e00 se0,000 + seo,o00 400,000 | + mindependent Charters mka2 108 EXHIBITC - 153 What legal requirements govern the District’s budgetprocess? Legal requirements for schooldistrict budgeting are spelled outin the State Education Code, * ‘TheDistrict is required to adopt a budget each year byJune 30". ‘The ‘Superintendent and Chief Financial Officer must certify that the budget is. balanced in the current year and, based on reasonable income ated expenditure assumptions, thatthe District will be able to balanceits budget fur two subsequentyears. Thus, based on the best information available, we have considered the District's likely revenues and expenditures in 2014-15 and 2015-16 when balancing the 2013-14 budget. + Any timethe District enters into « collective bargaining agreement, we are required (o submit a multi-year projection confirmingthe District’s ability to payfor the agreement in the current year and two subsequent years ‘Whathappens when the State adoptsits budget after the Constitutional deadline? TheState Constitution requires that the Legislatare adopts a State Budget nolater than June 15" of the preceding fiscal year, and that the Govemorsign the proposedState BudgetActno later than June 30% ‘When the Legislature and the Governor miss their deadlines, the requirements for schooldistrict budget development do not change, The Districtwill be required to submitits 2013-14 Final Budget to the Los Angeles CountyOffice of Education no later than July1, 2013 to meet its legal obligation, regardless of the adoptiondate of the State budgel, 1s the Final Budget balanced? Yes. The Final Budgetis balanced throughthe use of selected Tier III categoricalprogram flexibility, Proposition 30 sales tax revenues, and assumptions about additional revenuesflowingto the District as a result af the Governar’s proposed Local Control Funding Formula ‘Whatis the difference between Proposition 30 and Proposition 39, and what impact did they have on the budget? ~ Proposition 30 provided sales tax revenue to preventfurther euts in FY 2012-13. Furloughs reseinded upon passage ofProposition 30 restored thefull instructional school year. + Proposition 39 provides fundingfor efliciency-related upgradesto school facilities, including installation of green energy technologies. Itis not instructional funding, v7 EXHIBIT C - 154 Whatis a “deficit factor?” When the state appropriationfor schoolfunding falls short, a deficit factoris applied to reduce the actual allocation of state aid to the amount appropriated. Revenue Limit Deficit Rates Howcan employee benefits be reported in both the General Fund and the Health & Welfare Benefits fund? Isn’t that double counting? ‘The District established the Health & Welfare Benefits Fund to meet the requirements of the Governmental Accounting Standards Board. The Health & Welfare Benefits Fund receives contributions from different usec funds with positions that eam medical benefits. Examples ofuser funds include the General Fund, Cafeteria Fund, Capital Funds and other funds with positions that eam medical benefits. User fund contributions are transferred to the Health & Welfare Benefits Fund. Expenditures in this fund represent the actualinsurance premiums paid to outside providers. Asa result, contributions are reported as expenditures in the user funds and reported as revenue in the Health & Welfare Benefits Fund, 108 EXHIBIT C - 155 ‘Whydoesthe estimated amount of required budget reductions change overtime? TheDistrict receives or develops new financial information continuously. Revenue and beginning balance estimates change at the followingtimes: + Atthe First Period Interim Financial Report in December. + When the Governor announces his budget in January, + Atthe Second Period Interim Financial Report in March. + When the Governor publishes the "May Revise.” + In years requiring a Third Interim Financial Report,in June, when that Report is presented, + When the Legislature and Governor adopt the Stato Budgetin Juneor later + At-various times during the year when the State Department of Education publishes find allocations. Expenditure estimates changeat the following times: + At the First Period Interim Financial Report in December. + When the Governor announces his budget in Jamuury. + At the Second Period Interim Financial Report in March, ‘> When the Govemor publishes the “May Revise.” + Im years requiring a Thied Interim Financial Report, in June, when that Report is presented. + Daring the course of the fiscalyear when new revenue sources become available and when schools or offices make budget adjustments with ongoing (continuous?) budget implications + When the budgetis being developed. + When weare able to develop better cost estimates internally. ‘The Budget Services & Financial Planning Division attempts to keep the Superintendent and Hoard updated on a regular basis regarding significant changesin the District's revenue and expenditure estimates. 108 EXHIBIT C - 156 Whatis this “alligator” I’ve heen hearing so much about? ‘The alligatoris a chart used to illustrate the difference between the actual State unrestricted revenues por child, and what the State should paythe District LAUSD’S UNRESTRICTED REVENUE PER CHILD $7000 | 96,718 500 S622 36,126, $4,000 $5,500 20 $5,006 54500 a Dero 200809 2009-40 FOAL BOLZaNAAa Ha Te test) —+-What the State SHOULD pay abeWhat the State ACIUALLY pays + Statingin FY 2010-11, ABSS1 reveaues (Beyinning Teacher Sslary snd Meals for Needy) are include. in lly Revenue Limper ADA, The sates above de natinclude ABST EXHIBIT C - 157 APPENDIX B BUDGET PRINCIPLES AND PROCESSES A. Principles of Budgeting and Accounting The California Schoo] Accounting Manual and the California Education Code govern budget developmentfor California schooldistricts, and their standards form thebasis for developmentofthe District’s Adopted Final Budget. Among these standardsare: Basis for Accounting. The California School Accounting Manual mandates thatdistricts use either the accrualbasis or the modified accrualbasis in accounting for revenues and expenditures. The difference betweenthe twois as follows: * In the ModifiedAccrual Basis, revenues are recognized in the period when they become available and measurable, and expenditures are recognized when a liability is incurred, regardless of whenthe receipt or payment of cash takes place. Schooldistricts use the modified accrual basis in accounting for governmental funds such as the General Fund and Adult Education Fund. * In the Accrual Basis, revenues are recorded when earned, and expenditures are recorded whena liability is incurred, regardless ofwhen the receipt or payment of cash takes place. Schooldistricts use the accrual basis in proprietary funds such as the Cafeteria and Self-Insurance Funds,and fiduciary funds such as the Annuity Reserve Fund. Basis for Budgeting. The California School Accounting Manual also mandates the basis for school district budgeting. It requires that “generally, for California (schooldistricts), the basis of budgeting should be the sameas the basis of accounting used in the audited financial statements. Budgetary accounting must conform to the account codes in the standardized accountcodestructure.” California schooldistricts are required to display their budgets by fund, by object, and by function. Budgetary accounts are “projections and show how muchis estimated to be Spent or received during a given periodoftime to carry out the local educational agency’s (LEA’s) goals.” In general, budgetary accounts have two purposes: (1) to record the estimated revenues ofa fund by source and amount, and (2) to record and control the limits that are set on the expenditure levels by the appropriations. The recording of actual revenue and expenditures allows a comparisonto the available amounts to be committed or expended within the limits set by law or by the governing board. Revenue Budget. For each fund, the revenue budget anticipates all income from federal, state, and local sources, as well as the anticipated beginning balance. Thetotal of beginning balance and incomeis the maximum amounta schooldistrict maylegally budget to spend for any fund. Wi EXHIBIT C - 158 Expenditure Budget. Each fundhas an expenditure budgetreflecting the fund’s authorized costs, and, for mostfunds,the anticipated expenditure level. Budget by General Fund District Defined Program. Because the General Fund budget comprises many programs,it is divided into District Defined Programs such as Special Education, Regional Occupational Centers/Skills Centers, etc., to bring into focus programsofparticular interest. B. The budget process Budget Preparation. Thefirst step in preparing the budgetis to determinethe cost to continue the existing program. Enroliment-related costs are adjusted for projected changes. Costs notdirectly controllable by the District, such as utilities, retirement contributions,insurance, continuing contractual obligations, and legal costs, are adjusted to reflect estimated expenditures for the comingfiscal year. Estimates of income are developed based ona review offederal and State statutory provisions and local revenue sources. Beginning balance amounts for the budget year are calculated utilizing a comparisonofanticipated revenues and expenditures for the current year. The projected beginning balances and revenues are compared to the cost of continuing current programsto determine whether budgetreductions may be necessary or whether unanticipated amounts maybeavailableforallocation. Board andpublic participation. Board meetings are scheduled for discussion of proposed budget changes. Theseare public meetings that can be attended in person or viewed on the District’s television station at scheduled times. Membersofthe public may contact the District to speak on individual budgetitems or on the budgetas a whole. A public hearing, at which any memberofthe public may address the Board regarding the District’s proposed budget, is mandated prior to Board adoptions of the Final Budget in June. C. Budget revision process Budgetadjustments. The Budget Services and Financial Planning Division either receives or initiates well over 20,000 requests annually to adjustor revise the adopted budget. Generally, a budget adjustment(B.A.) enables a schooloroffice to use funds previously budgeted for a particular purpose. Certain limitations apply to B.A.s. For example, schools or offices may not transfer funds from a restricted program into an unrestricted one(e.g., transfers from Title I into a District-funded schoolinstructional materiel account wouldnot be permitted). B.A.s maybeeither continuous (ongoing), or limited to the remainderofthe currentfiscal year. They maybeeither “routine,” requiring only normal handling bystaff, or “non-routine,” requiring formal approvalby the Board of Education. 112 EXHIBIT C - 159 Categories of “non-routine” B.A.s are determined by the Board, andare currently defined as follows: A. All B.A.s from object of expenditure 7900(IFS) — Undistributed Reserves. B. All B.A.s which increasethe total number of regular, non-school-based budgetedpositions, except for those that are fully funded from the budgeted resources of the requesting office (‘“‘cost-neutral” budget adjustments). In addition to the above, California Education Code §42602 authorizes Boards of Education to increase incometo reflect unanticipated new revenues during the course of the fiscal year. 113 EXHIBIT C - 160 (THIS PAGE INTENTIONALLY LEFT BLANK) 114 EXHIBIT C - 161 APPENDIX C HOW EDUCATIONIS FUNDED IN CALIFORNIA Prior to the 1970s, California’s schools werefinanced largely with property tax revenues imposed for the benefit of local schooldistricts. This led to dramatic differences in schooldistrict funding. A schooldistrict with very high property values could raise more revenueper pupil with a low property tax rate, while a district with low property values could raise less with a much higher property tax rate. The state attempted to reduce these differences by providing more state aid to low-property wealth districts. Despite this effort, per pupil revenues varied considerably betweendistricts. In fiscal year 1968-69, for example, per pupil expenditures ranged from $577 in Baldwin Park to $1,232 in Beverly Hills.’ This disparity lead to the important Serranov. Priest (1976) equal protection litigation, which was resolved through statutory enactmentsthatcalled for a general equalization of state apportionmentrevenueto schooldistricts. In 1978, voters approved Proposition 13. The new law limited property tax rates to 1 percent ofa property’s assessed valueat the time of acquisition. Proposition 13 reduced property tax revenues available for local ‘governments andschooldistricts. To cushion the impactto schooldistricts, the state Legislature shifted state dollars to schools. With the adoption of Proposition 98 (1988) and Proposition 111 ( 1990), a minimum fundinglevel from State and local property taxes was provided to K-14 public schools. California schools todayreceive the large majority of their funding from theState, primarily from incomeandsales tax revenues. To a much lesser extent, districts also receive some local property revenues that are collected at the local level but distributed bythe State. Income and sales taxes are more volatile revenue sources than property taxes. When the economy sours, unemploymentrises, leading to fewer purchases. This correspondingly leadsto less income and goodsto be taxed. As a result, fewer dollars becomeavailable for schools. California schooldistricts therefore face dramatic cyclical funding variations as the economyrises andfalls. Further, California’s Governor and State Legislature, whose vote on the State Budget Act determines how State funds may bespent, have enormouscontrol overthe ability of local schooldistricts to utilize funding to meet the specific needs oftheir students. Approximately 60% ofall schooldistrict funds in California are general purpose in nature; the remaining 40% arerestricted to specific purposes, such as the needs of special education students, low income students, limited English-proficient students, and specific grade levels. This greatly constrains local boards of education in their spending decisions. They are further constrained in their ability to raise taxes independently ofthe State. Bondissues,usuallylimited to building programs, require a 55% vote for passage. Parcel tax measures require a 2/3 vote. The Governorhas recently proposed revising the state’s allocation formula for schooldistricts to increase flexibility at the local level. This proposal is known as the Local Control Funding Formula (LCFF). Under LCFF, the state would provide a base grantforall students and additional grants for high-need students such as English Learners and socio-economically distadvantagedpupils. The following provides information onlegislation and court rulings that have significantly affected California’s educational funding.” Senate Bill 90 (1972) — In 1972, the Legislature established revenue limits for California public schools. The legislation placed ceilings on the amount oftax moneyeachdistrict could receive per pupil. This was in order to help reduce the wide differences in school funding between high and low property-wealth districts. The 1972-73 general purpose spending level became the base amountin determining each district’s annual revenuelimit. ' California BudgetProject, School Finance in California and the Proposition 98 Guarantee (April 2006). ? Manyofthese rulings have been amended by subsequentlegislation. 115 EXHIBIT C - 162 APPENDIX C HOW EDUCATIONIS FUNDED IN CALIFORNIA Serrano v. Priest (1976)— This 1976 California Supreme Court decision declared the existing system of financing schools unconstitutional becauseit violated the equal protectionclause ofthe State Constitution. The Court ruled that property tax rates and per pupil expenditures should be equalized andthat, by 1980, the difference in revenue limits per pupil should be less than $100 (the “Serrano band”). This allowable difference in revenue limits has subsequently been adjusted for inflation. In equalizing funding,districts are divided into three types: elementary, high school, and unified. They are then further divided into small andlarge districts to ensure that appropriate funding comparisons are made. Special purpose or “categorical” funds are excluded from this calculation. Assembly Bill 65 (1977) — In response to the Serrano decision, the California State Legislature passed AB 65, creating an annualinflation adjustmentbased ona sliding scale in order to equalize revenue limits amongdistricts over time. Higher inflation increases were provided to districts with low revenuelimits, with lower (occasionally no)inflation adjustments for high revenue districts. Proposition 13 (1978) — This constitutional amendment(the “Jarvis Amendment”) approved by California voters in 1978 limits property taxes to 1% of a property’s assessed value, and caps increasesin assessed value at 2% annually or the percentage growth in the ConsumerPrice Index, whichever is less. It also mandated a 2/3 vote for approval ofnew taxes, such as parceltaxes. AssemblyBill 8 (1978) — In response to Proposition 13, the Legislature established a formula for dividing property taxes amongcities, counties, and schooldistricts. This shielded schools from someofthe measure’s effects. In the process, the State replaced the lost property taxes and effectively took control of school district funding. Gann Limit (Proposition 4, 1979) — Proposition 4 created a constitutional limit on government spending at every level in the State, including schooldistricts. No agency’s expenditures can exceed its Gann Limit, whichis adjusted annually for inflation and population increase. Senate Bill $13 (1983) — SB 813 provided additional moneyto schooldistricts through equalization of revenue limits and newcategorical programs, longer school day/year, and higher beginning teachers’ salaries. It also established statewide model curriculum standards. Lottery Initiative (1984) — In November 1984, voters approved Proposition 37, a constitutional amendment establishing the California State Lottery. Provisions guarantee that a minimum of 34% oftotal lottery receipts be distributed to publis schools, colleges, and universitites. Funds are to supplement, not replace, State support for education. Lottery funds cannotbe used for purchase or construction offacilities, for land, or research. Under Proposition 20, passed in March 2000, 50% oflottery funding above the 1997-98 funding level must be used for purchase ofinstructional materials. Proposition 98 (1988) — This constitutional amendment guarantees a minimum fundinglevel from State and property taxes for K-14 public schools in a complex formula based onState tax revenues.It also requires each school to prepare and publicize an annual School Accountability Report Card (SARC)that covers atleast 13 required topics. A 2/3 vote ofthe Legislature and the Governor’s signature are required to suspend Proposition 98 for a year. Proposition 111 (1990) — This constitutional amendmentchanged the inflation index for the Gann Limit calculation, effectively raising the limit. Additionally, the minimum Proposition 98 funding guarantee was changedto reflect the growth of California’s overall economy. It did so by shifting the adjustment from the growth ofper capita personal income (which historically has tended to be a lower amount) to the growth in State per capita General Fund revenues plus one-halfpercent. 116 EXHIBIT C - 163 APPENDIX C HOW EDUCATIONIS FUNDED IN CALIFORNIA AssemblyBill 1200 (1991) — AB 1200 established a system for schooldistrict accounting practices that specifies how districts mustreport their revenues and expenditures. It requires thatdistricts projecttheir fiscal solvency two years out, and provide the State with Board-approved financial interim reports twice annually. County offices of education are made responsible for monitoring and providing technicalassistanceto their districts. AB 2756 (2004)adds to the responsibilities and control of county offices of education overthe budget and expenditure reporting of local districts. Class Size Reduction, K-3 (SB 1777, 1996) — This legislation provided incentives for school districts to reduce K-3 classes to a pupil-teacher ratio of no more than 20 to 1, and provided additional funding to districts that met these ratios. A one-time allocation of $25,000 per added classroom was also made available. Senate Bill 1468 (1997) — This legislation changed the way average daily attendance (ADA)is counted, largely eliminating the concept of“excused absences” and basing ADA onstudents who are actually at school. To ensure that districts did not lose a large proportion oftheir revenue, the per-pupil revenuelimit rate was adjusted by the average attendancerates of each individual schooldistrict. Assembly Bill 602 (1997) — Thislegislation revised the state’s allocation formula for special education funding for school districts. The formula distributes a large share of special education funds based ontotal student population of each schooldistrict, rather than the number ofspecial education students at each district or the specific needs of those students. Assembly Bill 1115 (1999) — Under the termsofthis bill, an independent charter school is deemed a schoolofthe chartering schooldistrict for the purposesofestablishing its special education local plan (“SELPA”)status unless it designates otherwisein its charter petition. As such, independent charter schools which are members ofa school district’s SELPAare entitled to an equitable share ofspecial education services and funding. Assembly Bill 1600 (1999) — This bill gave charter schools the option to receive funding directly from the State, rather than from their local district, in the form of a block grant. ; Proposition 39 (2000) - This constitutional amendment established a 55% vote threshold for the issuance of school facilities construction bonds. In order to issue bonds under Proposition 39, the District must, among other things, use Proposition 39 bondfunds only for those projects specifically listed in the ballot measure and strategic execution plans; create and maintaina citizens’ bond oversight committee; and annually ensure that performance and financial audits are conducted for Proposition 39 facilities projects. Proposition 39 also requires the District to offer reasonably equivalent District schoolfacility space to independent charter schools. Proposition 49 (2002) - This voter initiative, otherwise known asthe "The After School Education and Safety Program Actof2002," increased state funding for before and after school programs at elementary and middle schools. Fundingis provided to the District through a competitive grant process with priority given to school sites that haveat least 50 percentofits students receiving free and reduced priced lunch. A portion ofstate funding underProsition 49satisfies the revenue limit guarantee under Proposition 98. Assembly Bill 825 (2009) - Underthe termsofthisbill, the District receives fundingforits Integration Program and for other instructional program needsas part of a targeted instructional improvementblock grant. Senate Bill 1133 (Quality Education Investment Act of 2006) — Adopted in 2006 as a settlement of the CTA v. Schwarzenegger etal. lawsuit, the QEIA program provides targeted fundingfor eligible schools in API deciles 1, 2 and 3. The fundingis to be used primarily for class-size reduction purposes and overall academic achievement goals. 117 EXHIBIT C - 164 APPENDIX C HOW EDUCATIONIS FUNDED IN CALIFORNIA Education Trailer Bill - Senate Bill 4 of the 2009-10 Third Extraordinary Session (SBX3 4, 2009) — For fiscal years 2008-09 through 2012-13,this bill established: (1) Categorical Program Flexibility, which grouped categorical programsintoTiers I, II, and III, and identified Tier III programs as unrestricted; (2) the public hearing requirementas a condition for receipt ofTier III funds; (3) the use of 2008-09 as the base year in calculating for most of the Tier III categorical programs anduse of 2007-08 as the base year for calculating the revenue limit-related TierIII categorical programs; and (4) the use ofJune 30, 2008 ending balances as unrestricted funds with a few program exceptions. See the glossary for additional details on Tiers I, II, and I programs. In addition, SBX3 4 relaxed K-3 Class Size Reduction penalties for fiscal years 2008-09 through 201 1- 12 only. Local Control Funding Formula (2013)— Thislegislation proposes to simplify the state’s allocation formula for school districts. The proposal intends to increase transparency for state funding to schools andincrease flexibility at the local level. Under LCFF,the state would provide a base grantforall students and additional grants for high- need students such as English Learners and socio-economically distadvantaged pupils. Source: This section ofthe budgetrelies heavily on information found in the State Fiunding ofK-12 Education section of the State Funding ofEducation website, from EdSource. 118 EXHIBIT C - 165 APPENDIX D AVERAGE DAILY ATTENDANCE General] Description Average Daily Attendance (ADA) is a measure of pupil attendance which is used as the basis for providing revenue to school districts, as well as a means ofmeasuring unit costs. Only in-seat attendance or applicable attendance credit is counted when calculating ADA. Generally, ADAiscalculated by dividing the total number ofpupil days of attendance by the number ofinstructional days in an ADAreportingperiod. Below is an example ofhow ADAiscalculated. Supposeover 3 instructional days, 30 students attended on Day I, 29 students attended on Day 2, and 31 students attended on Day3. The total number ofpupil days of attendance would be calculated as 30 + 29 + 31 = 90. Sincethere are 3 instructional daysin this period, the ADA would be 90/3 = 30. Day1 30 students attended Day 2 29 students attended Day 3 31 students attended Total days of attendance ofall students 90 Total number ofinstructional days 3 Average Daily Attendance 90/3 = 30 An exception to this involves the use of fixed divisors (in place of the number ofinstructional days) in calculating ADA for Adult Education, Regional Occupational Centers, Regional Occupational Programs, Community Day Schools, and Extended School Year (Special Education-Special Day Classes (SDP) and * Non-public School). ADA Reporting Periods First Period (P-1) This reporting period is from July | through the school month ending on or before December 31. The ADAreportedin this period is used by the State to estimate the amount oflegally authorized revenue to school districts. It serves as a basis for State progress payments to districts during the second semester. Second Period (P-2) This reporting period is from July | through the school month ending on or before April 15. The ADA reported in this period is used by the State to apportion most budget year revenueto schooldistricts. Annual Period This reporting period is from July 1 through June 30. Annual ADAis used primarily to develop unit program costs. The California State Lottery revenue and Revenue Limit of Community Day Schools, Special Education-SDP Extended School Year, and Non-public Schools are based on annual ADA. Up to fiscal year 2007-08, revenue for Regional Occupational Centers, Regional Occupational Programs, and Community Adult Schools were based on ADAreported in this period, but not for fiscal years 2008-09 through 2014-15. The details are discussed in the following paragraphs. 119 EXHIBIT C - 166 ADAAs The Basis of Revenue Revenue Average Daily Attendance rellects the Average Daily Attendance (ADA) used to calculate the dismict’s revenue, Generally, the basis for K-12 revenue is mostly P-2 ADA; white Conununity Duy Schools Progrum, Adult Education Program, Regional Occupational Centers and Regional Occupational Program revenues are based on annual ADA.But in 2009, SBX3 4 changed the funding catculation for these progranss. This is discussed below and the following pages. Thetable below best describes the varivus Lypes of ADA and on which reporting perind the revenue is based on. Grade LeveliProgram ADA Reporting Period of Revenue ADA Continuation Education Pz Home & Hospital Pa Special Education-SDC Extended Schuol Year ‘Anmial Community Day School (additional hours} ‘Annual see paraguaplsbetow fordetails) Non-publie School-t.Cl Ann Non-public Schoo-LCI - Extended School Year Aatsual Adult Education Annval (see paragraph below for details) For a school district experiencing an enrollment decline from one year to the next, Education Code Section 42238 allows school districts to use the greater of the current year or prioryear toral ADA of K- 12 hough Special Edueatiou-SDC lixtended School Year in the table above, as part of the funded Revenue Limit ADA,This provision is not applicable to charter schools. To this ADA, Community Day School {first four hours) and all Non-public School current year annual ADAs are added to calculate the totalfunded Revenue Limit ADA. For fiscal years 2008-09 through 2014-15, revenue for Adult Education Programs, Regional Occupational Centers, Regional Occupational Programs, and the 5* and 6” hour funding for Community Day Schools (aon-mandatorily expelled pupils only) ix based on the relative proportion of the Distict’s 2007-08 entitlement foreach individual program to total 2007-08 statewide funding for each individual program as well. To calevlate the currentyear’s entitlement for each program, the percentage is applied o each fiscal year's (otalstatewide funding available. Absent any legislation, the Stale will revert to using ADA. as the basis of entitlementfor the above programsbeginning 2015-16. ‘The entitlementfor the 5* and 6* hour Community Day Schools mandatorily-expelled pupils is calculated by multiplying the ADA tines a rate per ADA. ADAfrom Special Education Program includes only those generated bypupils whoattend Special Day Program classes in special education schools, regular schools, opportunity schools, and continuation high 120 EXHIBIT C - 167 schools. ADA ofpupils in regular education classes who receive special education services on a part-time basis is included in K-12 ADA. Adult Education Programsare hourly programsandpupils are considered in attendance if theyattend at least once during the scheduled hour. Only those units of ADA eared that fall under the ten mandated classes mentioned below were included in the revenue calculation for prior fiscal years ending in 2007- 08. The change in funding methodology for fiscal years 2008-09 to 2014-15is discussed in the following paragraphs. 1. Parenting Elementary basic education in core academic areasfor pupils not possessing a diplomaor equivalency andto provide remedialinstruction 3. Secondary basic education in core academicareasfor pupils not possessing a diplomaor equivalency and to provide remedial instruction 4. English-As-A-Second Language (ESL) 5. Citizenship 6. Vocational education; short-term career technical programswith high employmentpotential 7. Programsfor older adults 8. Adults with disabilities 9. Home economics education 10. Health and safety education A day ofattendancein adult education is three hours; 525 hours (three hours per day multiplied by 175 days) equals one adult ADA.Pupil attendance may be moreorless than the three hours in a day, and the adult school mayoperate moreorless than the 175 days a year. Therefore, adult ADAis simply total hours ofattendance divided by 525. Ifmore than 175 days were offered it is possible for a student to earn more than one ADA. For fiscal years 2008-09 through 2014-15, the entitlement for this program is not based on ADA but on the relative proportion of funding received in 2007-08 to the total 2007-08 statewide funding. The resulting percentage is then multiplied to each fiscal year’s total statewide amountto get to the entitlements for 2008-09 through 2014-15. Absent any legislation, the State will revert to the previous methodology of calculating the entitlement beginning 2015-16. AB 23 added Section 52617 in the Education Codeto provide adjustments to allocation of apportionments to adult education’s average daily attendance. Schooldistricts that exceed its units of authorized ADAin the two priorfiscal years shall receive a prorated amountofunits available relative to the authorized ADAlimit ofthe schooldistrict.If it fails to generateits units of authorized ADA in the twopriorfiscal years, the authorized (cap) ADAshall be reduced by an amount equalto one-half of the lowest level ofunearned ADAin either of the two prior fiscal years. AB23 is suspendedforfiscalyears 2008-09 through 2014-15, Regional Occupational Centers/Programs (ROC/P)are hourly programsand pupils are considered in attendanceif they attend at least once during the scheduled hour. Generally, there is no limit on the number ofROC/P hours that might be eamed bya single pupil. If a pupil is enrolled in ROC/P as part of a work experience program, however, the hours are capped at 15 per calendar week. A day of attendance for pupils in a regional occupational center and regional occupational programis three hours; 525 hours is equal to one ADA. , 121 EXHIBIT C - 168 Forfiscal years 2008-09 through 2014-15, the entitlementfor this program is not based on ADAbuton the relative proportion offunding received in 2007-08to the total 2007-08 statewide funding. The resulting percentageis then multiplied to each fiscal year’s total statewide available funding to calculate the entitlements for 2008-09 through 2014-15. Absent any legislation, the State will revert to the previous methodology ofcalculating the entitlement beginning 2015-16. As part of the ROC/P,the district offers programsfor apprentices which are funded by the State based on the lesser of the actual hours earned or State-approved numberofhours,times a rate per hour. 122 EXHIBIT C - 169 APPENDIX D FUNDED AVERAGE DAILY ATTENDANCE TABLE 2012-13 2013-14 Estimated Estimated Funded Funded ADA ADA K-12 - Regular Program Non-charter Schools - K-12 (excludes County-educated ADAs) 490,212.98 453,738.42 Fiscally-dependent Charter Schools — K-12 28,214.42 50,191.27 Fiscally-independent Charter Schools — K-12 84,331.17 93,898.41 Total Regular Program 602,758.57 597,828.1 K-12 - Special Education Program Special Day Classes — Non-charter Schools 24,194.63 22,951.82 Special Day Classes — Fiscally-dependent Charter Schools 653.05 1,403.93 Special Day Classes — Fiscally-independent Charter Schools 457.39 312.28 All Non-public Schools - Non-charter Schools* 3,004.09 2,905.76 Special Day Classes, Extended Session — Non-charter Schools* 751.44 1,010.49 Special Day Classes, Extended Session — Fiscally-dependent Charter Schools* 0.00 0.00 Special Day Classes, Extended Session — Fiscally-independent Charter Schools* 10.54 7.40 Total Special Education Program 29,071.14 28,591.68 Total K-12 Funded ADA 631,829.71 626,419.78 Regional Occupational Centers/Programs** See note below for information on funding, Adult Education** See note below for information on funding. Supplemental Instructional Hourly Programs*** Core Academic Program See note below for information on funding. Remedial Program — Grades 7-12 See note below for information on funding. RecommendedFor Retention — Grades 2-9 See note below for information on funding. * Funded ADAis based on annual ADA ** Per 2009 SBX34, revenueis not based on ADA but on 2007-08relative proportion of District entitlement to 2007-08 statewide funding, and applying the percentageto the current year’s total statewide amount. *** Per 2009 SBX3 4,revenueis not based on hours but on 2007-08relative proportion ofDistrict entitlement to 2007-08 statewide funding, and applying the percentageto the current year’s total statewide amount. 123 EXHIBIT C - 170 APPENDIX D NUMBER OF SCHOOLS AND CENTERS SchoolSites The table on the following page showsthe preliminary number of schools and centers budgeted for operation for the 2013-14 school year. Generally, Continuation High Schools and MagnetCenters share sites with a regular school. Adult Education Service Areas are groupsofsites, operating under ten location codes, in shared facilities with secondary schools or stand-alone Division of Adult and Career Education sites which provide academic and career technical training. Alternative Education Work Centers provide alternative instruction to high school students within the various Adult Education Service Areas. The ROP Centerconsists ofa series of individual work locations identified as one school location for purpose of attendance and expenditure reporting. Grade Level Configuration Elementary schools include students from kindergarten through sixth grade. Middle schools have sixth through eighth grade students, and senior high schools have ninth through twelfth grade students. Some magnet schools follow a traditional grade configuration while others include kindergarten through the twelfth grade. Span schoolscan include combinations of elementary and secondary grades or secondary prades only. School Size Individual schools vary widely in enrollmentsize. Elementary schools range from less than 200 to more than 1,100 pupils. Middle schools range from less than 400 to more than 1,800, and senior high schools range from less than 300 to more than 3,000. Magnet schools range from less than 300 to more than 2,000 pupils. Some Magnet Centers serve less than 100 pupils, while other magnet centers enroll 800 or more. Most Special Education Schools and Opportunity Schools have enrollments between 100 and 300 pupils. Continuation High Schools generally have fewer than 200 pupils. Enrollment ranges in this section are based on projected enrollments used for prelimary staffing allocations for 2013-14. 124 EXHIBIT C - 171 APPENDIX D NUMBER OF SCHOOLS AND CENTERS 2013-14 TOTAL MULTI-TRACK SINGLE TRACK Continuous K-12 Separate School Campus Primary Schoot Centers 18 18 Elementary Schools 457 457 Middle Schools 84 84 Senior High Schools 103 1 102 Option Schools 56 42 14 Magnet Schools 34 34 Multi-level Schools 23 23 Special Education Schools 15 15 Sub Totat 790 1 775 14 K-12 Magnet Centers Elementary 45 45 Middle 52 52 Senior 52 52 Sub Total . 149 0 149 0 Other Schools Adult Education Service Centers 10 10 ROP Center 1 1 Alternative Education Work Centers 26 26 Early Education Centers 85 85 Sub Total 122 0 122 0 TOTAL 1061 1 1046 14 Fiscally Independent Charter Schools Primary ‘School Centers 8 ] 7 Elementary Schools 51 2 49 Middle Schools 41 0 41 Senior High Schools 58 0 58 Multi-level Schools 41 0 41 Total Charter Schools 199 3 196 0 GRAND TOTAL SCHOOLS AND CENTERS 1260 4 141242 125 EXHIBIT C - 172 (THIS PAGE INTENTIONALLY LEFT BLANK) 126 EXHIBIT C - 173 APPENDIX E REVENUE LIMIT INFORMATION General Description The revenuelimit is the basic financial support for District activities. The total amount generated from the revenue limit is calculated using Average Daily Attendance (ADA) of pupils and a unit rate amount expressed as dollars per unit ofADA. There are three sources of revenue limit income, the Education Protection Act (EPA, enacted by Proposition 30 in November 2012), local property taxes, and State income. Currently, EPA is estimated at 16% ofthe total deficited revenue limit. The State’s share of the revenue limit income is the amountin excess of the EPA andthelocal property taxes. Per 2009 Budget Act SBX3 4, categorical programs are classified into Tiers J, II, and III which determines whether a categorical program is allowed flexibility as to use of funds. The categorical programs associated with the revenuelimitare in Tiers II and III, where funding for Tier III programs are designated as unrestricted. The Apprenticeship Program is included in Tier II, while the Supplemental Instructional Hourly Programs, Community Day School Additional Funding (All Other CDS Pupils only), Regional Occupational Centers/Program, and Adult Education are included in Tier II. These programs use 2007-08 entitlement as the base year when estimating the entitlements for fiscal years 2008-09 through 2014-15. Other Tier II and Tier III categorical programs notlisted in this paragraph use 2008-09 entitlement as the baseyear. Revenue Limit Calculations Therevenuelimit calculations are based on the Governor’s 2013-14 May Revise Budget. K-12 Revenue Limit Per The 2013-14 budgetcalls for a cost of living allowance (COLA)of ADA 1.565% and a deficit rate of 18.997%, which yields a 5.86% effective COLA.This 5.86% effective COLAreflects the State as being able to afford more than just the current year’s COLA. The revenuelimit rate per ADAisas follows: 2012-13 Base Revenue Limit Per ADA $6,717.56 2013-14 COLA 106.00 2013-14 Add-on: AB 851 (Meals For Needy and 58.25 Beginning Teachers Salary) 2013-14 Revenue Limit Deficit - 1,307.34 2013-14 Base Revenue Limit Per ADA $5,574.47 127 EXHIBIT C - 174 Special Education Meals For Needy Pupils Beginning Teachers Salary Supplemental Instructional Hourly Programs Community Day School Additional Funding Apprenticeship Program Thebase revenuelimitper ADA for Special Educationreflects the same COLAanddeficit as the K-12 revenuelimit. In addition to revenue limit, Special Education funding is provided through the AB602 formula using total Special Education Local Plan Area (SELPA) ADA. Per AB851, beginning 2010-11, both entitlements are based on a per ADAratereceived in 2007-08. The 2013-14 rate is derived by dividing the total 2007-08 entitlements for both programs by the 2007-08 revenuelimit ADA, andincreased or decreased by the COLAs from 2008-09 to 2013-14. This rate is then multiplied by the 2013-14 revenue limit ADA anddeficit factor to come up with the 2013-14 total entitlement. See also calculation of the K-12 Revenue Limit Rate Per ADA. SB813 provides a formula beginning in 1984-85 for funding Summer School programsbased on hours of attendance rather than ADA for proficiency classes, mathematics, science, and other academic courses. Since these programs may beoffered at various times during the school year andnot only during summer,they are referred to as “Supplemental Instructional Hourly Programs.” The 2013-14 entitlement wasestimated by taking the 2007-08 entitlement’s relative proportion to total 2007-08 statewide funding, and multiplying the percentage to the 2013-14 statewide available funding. Per 2009 Budget Act SBX34, the Supplemental Instructional Hourly Programs are part of the Tier III categorical programs. Therefore, the district has flexibility as to use of funds. There is no changein the calculation of the “Mandatory Expelled Pupils” portion ofthe additional funding, whichis still based on current year annual ADA. The 2013-14 entitlementfor “Al! Other CDS Pupils” was estimated by taking the 2007-08 entitlement’s relative proportion to total 2007-08 statewide funding, and multiplying the percentageto the 2013-14 statewide available funding. Per 2009 Budget Act SBX3 4, the Community Day School Additional Fundingfor “All Other CDS Pupils”is part of the Tier III categorical programs. Therefore,the district has flexibility as to use of funds. This Tier II categorical program is estimated to be funded at $5.04 per hour times the estimated funded hours. Funds should be used forthis program. 128 EXHIBIT C - 175 Regional Occupational Centers/Programs/ Skills Centers Adult Education The 2013-14 entitlement (excluding CalWORKs)was estimated by taking the 2007-08 entitlement’s relative proportion to total 2007-08 statewide funding, and multiplying the percentage to the 2013-14 statewide available funding. Per 2009 Budget Act SBX3 4, the ROC/P Program is part of the Tier III categorical programs.Therefore,the district has flexibility as to use of funds. The 2013-14 entitlement (excluding CalWORKs) wasestimated by taking the 2007-08 entitlement’s relative proportion to total 2007-08 statewide funding, and multiplying the percentage to the 2013-14 statewideavailable funding. Per 2009 Budget Act SBX3 4, the Adult Education Program is part of the Tier III categorical programs. Therefore, the district has flexibility as to use offunds. 129 EXHIBIT C - 176 (THIS PAGE INTENTIONALLY LEFT BLANK) 130 EXHIBIT C - 177 SUPERINTENDENT'S 2013-14 FINAL BUDGET APPENDIX F LOS ANGELES UNIFIED SCHOOL DISTRICT Board of Education Report Report Number: Date: Subject: Responsible Staff: Name Office/Division Telephone No. 289-12/13 May14, 2013 Proposed Useof Tier III Categorical Funds — Public Hearing Tony Atienza Director of Budget Services and Financial Planning Budget Services and Financial Planning Division 213-241-2100 BOARD REPORT Action Proposed: Background: Expected Outcomes: Bd. of Ed Rpt No. 289-12/13 The Board adopt the recommendationsfor the proposed use of 2013-14 Tier II] categorical fundsset forth in Attachment A. Underthe terms of SBX3 4 and AB4X 2,state categorical programslisted as “Tier IY” may be transferred for any "educational purpose”(includes unrestricted General Fund or other categorical programs) through 2012- 13. SB 70 extendedthis flexibility until 2014-15. Asa condition of the receipt of these categorical funds, section 42605 of the Education Code requires that the Board conduct an annualpublic hearing on the proposed uses ofthese TierIIT funds, receive testimony from members ofthe public, discuss the proposed uses ofthe funds, and approve or disapprove the proposed use of the funds. This public hearing must be held prior to and independent of a meeting where the Board adopts a budget, identify program that is proposed to be closed andtolist these program in the agendaofthe public hearing. The proposed uses of the Tier III categorical fundsare set forth in AttachmentA. The District will comply with section 42605 of the Education Code and AB189 regardingthe receipt of Tier III categorical funding. The proposed uses ofthe Tier III categorical funds subsequently will be contained in the final budget of the District for the year ending June 30, 2014 and related budget documents. Page | of 3 Board of Education 5/14/2013 131 EXHIBIT C - 178 SUPERINTENDENT'S 2013-14 FINAL BUDGET APPENDIX F . LOS ANGELES UNIFIED SCHOOL DISTRICT JON. Board of Education Report Board Options and The District will meet the requirements of Education Code Section 42605 Consequences: should the Board vote to approve. Should the Board not vote to approve, the District will not meet the requirements of Education Code Section 42605. Non-compliance could putthe entire Tier IJ entitlementatrisk. This will result in a need to identify additionalfiscal stabilization plan to be reflected in the final budget. Policy Implications: Budget Impact: The proposedusesofthe Tier III categorical funds subsequently will be containedin the final budget ofthe District for the year ending June 30, 2014 and related budget documents. Issues and Analysis: Attachments: UInformative (Desegregation Impact Statement Bd. of Ed Rpt No. 289-12/13 Page 2 of 3 Board of Education 5/14/2013 132 EXHIBIT C - 179 SUPERINTENDENT'S2013-14 FINAL BUDGET APPENDIX F LOS ANGELES UNIFIED SCHOOL DISTRICT Board of Education Report Respectfully submitted, APPROVEDBY: JOHN E. DEASY, PH.D. MICHELLE KING Superintendent of Schools Senior Deputy Superintendent School Operations APPROVED & PRESENTED BY: REVIEWEDBY: MEGAN REILLY DAVID HOLMQUIST Chief Financial Officer General Counsel ry Approved as to form. MATT HILL TONY ATIENZA Chief Strategy Officer Director of Budget Services and Financial Planning faxApproved as to budget impact statement. Bd. of Ed Rpt No. 289-12/13 Page 3 of 3 Board of Education 5/14/2013 133 EXHIBIT C - 180 SUPERINTENDENT'S 2013-14 FINAL BUDGET APPENDIX F Notice of Public Hearing Date: May 14, 2013 Time: 1:00 p.m. Location: Los Angeles Unified School District Board Room, 333 South Beaudry Ave. Los Angeles CA 90017 ATTACHMENT A Purpose: A public hearing will be held for the purpose of taking testimony from the public discussing the proposed receipt and useof the Tier I! categorical funds, identifying closed programs’, and receive Board approvalof or disapproval of theproposed use of funding from the programsidentified in E.C. 42605, Tier IM Categorical Program 2013-14 Redirected Description of Proposed Use of Funds Entitlement for General Education ? Targeted Instructional Improvement Block Grant $ 460.4 15 58.8 [Classroom teachers, magnet schoolcosts,travelling student program costs, and general education programs Aduit Education Apportionment $ 163.2 |S 102. |General education program Supplemental Hourly Programs2 $ 57.4 4S 57.4 {General education program ROC/P Apportionment $ 53.115 20.2 |ROC/ROP programs and general education programs School and Library ImprovementBlock Grant ** $ 43.6 |$ 43.6 |General education program Instructional Materials Realignment, IMFRP (AB 1781) $ 35.5 |$ 13. [District instructional material requirements and general education programs Unrestricted - OSR-Deferred Maintenance Funding ** $ 26.|$ 26. |General education program Professional DevelopmentBlock Grant ” $ 23.2 |$ 23.2 {General education program Supplemental School Counseling Program $ 16.7 |§ -_}District counseling programs Charter School Categorical Block Grant $ 14.3 1$ - |General education programsforaffiliated charter schools Class Size Reduction, Grade Nine *” $ 12.3 5 12.3 {General education program Teacher Credentialing Block Grant $ 11.1 15 9.3 [Teacher credentialing and general education programs Arts and Music Block Grant *? $ 8.7/$ 8.7 |General education program Community Day Schools $ 8.615 - [Community day school expenses and general education programs School Safety & Violence Prevention, Grades 8-12 $ 7718 3.9 JSchoolsafety, student health, and general education orograms Community-Based English Tutoring *” $ 6.2]$ 6.2 |General education program CAHSEEIntensive Instruction and Services *? $ 6.145 §.1 |General education program Staff Development: Mathematics and Reading (AB 466) ° $ 5.415 5.4 |General education program Gifted & Talented Education (GATE) $ 4575 2.1 [Gifted programs and general education Pupil Retention Block Grant *” $ 4.315 4,3 |General education program California Peer Assistance & Review Program for Teacher $ 2.615 0.3 [District California Peer Assistance & Review program and general (CPARP) education programs Certificated Staff Mentoring *” $ 2.1]$ 2.1 |General education program Physical Education TeacherIncentive Grants *7 $ - 48 - |General education program Alternative Credentialing Block Grant *” $ - 1$ - |General education program FEMAHazard Mitigation Grant $ - [$ - [Long-term hazard mitigation measures at schoolsites, National Board Certification $s - 1$ -_ {Incentive for California National Board Certified teachers Paraprofessional Teacher Training (CTC) $ 0.345 -_|Paraeducatortraining Cab-SAFE Child Care and DevelopmentServices $ 1S 0.3 jSchool-specific program for expectant and parenting students and eneral education program, Advance Placement Grant $ 0.445 -_JAdvance placementfees Child Oral Assessments $ 0.4|$ - [Oral health programs Supplementary Programs: Specialized Secondary $ - 4s - |Programs provide students with advanced learning opportunities In variety of subjects. School Community Violence Prevention Grant $ 0.14$ -_[Schoo! site violence prevention program Staff Development: Reading Services for Blind Teachers *? $ 0.1} $ 0.1 {General education program Chief Business Officer Training *7 $ -4$ - |General education program Teacher Retention and Recruitment *7 $ - {$ - [Remaining balance used for NBC teacher stipends and special project related to teacher quality and staffing . ju i 12 $ - {$8 -_|Student health expenses TOTALTIER Ht Categorical Program $ 974.9[$ 405.2 Notes: *£.¢. 42605 requires * that the governing boardshall identify in the notice of the agenda of the public hearing or at another public hearing, the program or programs proposed to be closed". ? Closed program refers to the funding that have been provided byTierIli state revenues. Some ofthese programswill retain a core component whichis outside of this TierII process. In addition, should the District receive supplemental revenues someof the closed program maybe restored using the alternative funding, consistent with the priorities to be identified in the Superintendent's Budget for 2013-14. 3 General education includes District norm class sizes teachers, administrators, safety officers and will be consistent with the priorities to be identified in the Superintendent's Budget for 2013-14. These reflect accumulated impact of various board action to movefunds from the program to general education purpose since the start of Tier II flexibility in 2008-09, Board of Education Report No. 289-12/13 134 Teer Hi Revenues public notice version - 2023 0504 v2 5/4/2013 £40 PM EXHIBIT C - 181 APPENDIX G SCHOOL STAFF AND RESOURCES Introduction The School Staff and Resources section describes the staff and non-staff allocations made to most District schools based on Board-approved allocation rates or “norms.” Staffing ratios are provided for regular elementary schools, regular secondary schools, magnet and altemnative schools, special education schools, community adult schools, regional occupational centers (ROC) andskills centers. Personnel resources provided on a “norm”basis include positions such as teachers, principals, assistant principals, librarians, clerical, and other office personnel. Staffing allocations also included non- classroom support personnel as guidance, welfare, attendance, physical and mental health personnel, campus aides, and maintenance and operations staff. A separate listing is provided to show materiel and supplies allocation rates, which cover needs such as basic instructional materiels, textbooks, custodial, gardening and operational supplies, and school- community advisory committee expenses. 135 EXHIBIT C - 182 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff , Regular Elementary Schools Staffing of elementary schools is based on established norm tables and District policies. The norm tables prescribe the numbersand types of positions for a given enrollment. For certain positions, enrollment is weighted or adjusted to reflect extraordinary need. In addition to norm tables, other District policies allocate off-norm positions to schools with identified special needs. NORMS CERTIFICATED- Based on District Norm Charts 1 teacher per 24 students in Kindergarten 1 teacher per 24 students in grades 1-3 1 teacher per 39 students in grades 4-6* For special education classes, see Special Education norms. 1 principal per school 1 assistant principal for multi-track year round school with 1,000-1,809 students 1 assistant principal for single track school with 1,110 to 1,809 students 2 assistant principals for schools with 1,810 to 2,419 students 3 assistant principals for schools with 2,420 or more students CLASSIFIED 1 school administrative assistant per school, plus: 5 office technician for schools with enrollments up to 300 I office technicians for schools with enrollments of 301 to 749 2 office technicians for schools with enrollments of 750 to 1,499 3 office technicians for schools with enrollments of1,500 to 2,249 4 office technicians for schools with enrollments of 2,250 to 2,999 5 office technicians for schools with enrollments of 3,000 to 3,479 6 office technicians for schools with enrollments of 3,480 and above * - Designated schools involved in the court-ordered integration program received additional positions to provide an overall ratio ofone teacher for every 30.5 students in grades 4-6 for Predominantly Hispanic, Black, Asian and other Non-Anglo schools; and 36.0 in grades 4-6 for Desegregated/Receiver schools. 136 EXHIBIT C - 183 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff (Continued) Regular Secondary Schools Staffing of secondary schools is based on established norm tables and District policies. The norm tables prescribe the numbersand typesof positions for a given enrollment. At the secondary level, teacher norm tables are modified to provide only five teaching periods. In addition, other District policies allocate off-norm needs. positions to schools with identified special SECONDARY NORMS- 2013-14 CERTIFICATED — Based on District Norm Charts 1 — teacher per 42.5 students in middle schools* teacher per 42.5 students in senior high schools** principal per school assistant principal, secondary counseling services per school with enrollment of 800 to 1,354 1 assistant principal per school with enrollmentof 1,355 to 1,749 2 assistant principal per schoo! with enrollment of 1,750 to 2,088 3 assistant principal per school with enrollmentof 2,089 to 4,233 4 assistantprincipal per school with enrollmentofat least 4,234 CLASSIFIED 1 school administrative assistant per school, plus: 5 clerical position for middle schools with enrollments up to 550 plus 1 clerical position for each additional 500 students over 700 5 clerical position for senior high schools with enrollments of up to 550, plus 1 clerical position for each additional 500 students over 700 # financial managerper middle school — financial manager at middle schoo! 1 will serve two (2) sites senior financial managerper senior high school * - Designated middle schools involved in court-ordered integration programs received additional positions to provide an overall ratio of one teacher for every 34.0 students in academic classes for Predominantly Hispanic, Black, Asian, and Other Non-Anglo schools; and 39.5 students in academic classesfor Desegregated/Receiver Schools. Designated senior high schools involved in court-ordered integration programs received additionalpositions to provide an averall ratio ofone teacherfor every 34.0 9th and 10th grade students in academic classes for Predominantly Hispanic, Black, Asian, and Other Non-Anglo schools; and 39.5 9th and 10th grade students in academic classes for Desegregated/Receiver Schools. oe 137 EXHIBIT C - 184 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff (Continued) Magnet Schools Several Magnet Schools provide services for both elementary and secondary students. Basic teacher allocations are determined by the magnetandalternative school norm tables for total enrollment. Other staff is based on District policy. MAGNET NORMS- 2013-14 Magnetschools and centers identified as serving Predominantly Latino, Black, Asian, and Other Non-Anglo students: I teacher per 24.0 students in grades K-3 1 teacher per 30.5 students in grades 4-5 1 teacher per 34.0 students in grades 6-8 1 teacher per 34.0 students in grades 9-12 All other magnet schools and centers: 1 teacher per 24.0 students in grades K-3 1 teacher per 34.0 students in grades 4-5 1 teacher per 36.5 students in grades 6-8 1 teacher per 36.5 students in grades 9-12 Options Schools Options schools serve students for whom placement in the regular school environment is not in the best interest of the students. Because these students require an individualized program to meettheir unique academic and behavior needs, a lower pupil/teacher norm is provided. CONTINUATION NORMS-— 2013-14 I teacherper 29 students per continuation school 1 principal per continuation school 1 schooloffice manager/clerk per continuation school OPPORTUNITY AND COMMUNITY DAY SCHOOLS NORMS- 2013-14 1 teacherper 21 students per opportunity and community day school i principal per opportunity and stand alone community day school i assistantprincipal per opportunity school and stand alone community day school- sites with enrollment greater than 500 1 INDEPENDENT STUDY NORMS~ 2013-14 1 teacher per 30 students per independentstudy schoolI principal2 assistant principals1 school administrative assistant school administrative assistant per opportunity school and stand alone community day school 138 EXHIBIT C - 185 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff (Continued) Special Education Programs & Special Education Schools Special Day Programs serve pupils whose nature or severity of disability precludes participation in a general education program for a majority of the schoolday. Resource Specialist Programs provide instructional services for individuals with exceptional needs in general education schools. Resource specialist students are assigned to their general education classroom for a majority of the school day and receive services from the resource specialist teacher either directly in a collaborative basis with the general education classroom teacher or a Learning Center Model. Designated Instruction and Services are provided to special education students who require assistance in a particular area, such as language, speech, audiology, mobility, adaptive physical education, vision, counseling, etc. SPECIAL EDUCATION NORMS~ 2013-14 Special Day Programs- Class size varies depending on type of program. Special day programs have program support staff allocated based on special education program needs. Designated Instruction and Services — Student/teacherratios vary by type of service, except for language, speech, and hearing which may not exceed a caseload of 55 students. There are no trainees/assistants for this program. A. Special Education Schools 1 principal per school 1 asst. principalat large enrollmentschools or schools serving low incidence groups B. Elementary Schools 1 school administrative assistant, B Basis 2 office technicians, B Basis C. Secondary or K-12 Schools 1 school administrative assistant, B Basis 1 _senior office technician, B Basis 1 office technician, B Basis 139 EXHIBIT C - 186 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff (Continued) Community Adult Schools Community Adult Schools (CAS) are staffed based on established staffing guidelines for administrative and classified personnel. Teacherpositions are allocated at each school site from the teacher hour allocation. Due to wide variances in the programs offered at each site, teacher hours are allocated based on prior year A.D.A, average school-wide class size index, as well as other subjective criteria. In addition, other District programs allocate additional positions to schools with identified special community needs. 1 1 1 1 1 I 2 1* CLASSIFIED COMMUNITY ADULT SCHOOL NORMS- 2013-14 CERTIFICATED Principal assistant principal, operations assistant principal, adult counseling services school administrative assistant occupational centerfinancial manager school office computer coordinator office technicians if A.D.A.is 1,200 orless, additional office technician for every 675 A.D.A.in excessofthefirst 1,200 A.D.A. *Subject to availability of funds. 140 EXHIBIT C - 187 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff (Continued) Regional Occupational Centers (ROC)/Skills Centers (SC) Regional Occupational Centers (ROC)/Skills Centers (SC) are staffed based on established staffing guidelines for administrative and classified personnel. Teacherpositionsare allocated at each schoolsite from the teacher hourallocation. Due to wide variancesin the programs offered at eachsite, teacher hours are allocated based on prior year A.D.A., average school-wideclass size index, as well as other subjective criteria. In addition, other District programs allocate additional positions to schools with identified special community needs. ROC/SKILLS CENTERS NORMS- 2013-14 CERTIFICATED 1 principal 1 assistantprincipal, operations 1 assistant principal, adult counseling services CLASSIFIED 1 school administrative assistant 1 occupational center financial manager 1 school office computer coordinator 2 office technicians with A.D.A. of2,400 or less for ROC 2 office technicians with A.D.A. of 1,200 orless for SC 1* additional office technician for every 675 A.D.A.in excess ofthefirst 2,400 A.D.A. for ROC or additional office technician for every 675 A.D. A. in excess of the first 1,200 A.D.A. for SC *Subject to availability of funds. Regional Occupational Program The Regional Occupational Program is staffed based on the same staffing guidelines as Community Adult Schools, Regional Occupational Centers, and Skills Centers. Additional staffmay be allocated based on the needs of the secondary schoolsthat the program serves. Alternative Education & Work Centers Alternative Education and Work Centers (AEWC), which are associated with Community Adult Schools, Regional Occupational Centers, or Skills Centers are located at 26 sites. AEWC provides students who left the comprehensive high schools, with additional educational opportunities leading to a high school diplomaor equivalency, apprenticeship, and other career and technical education training programs. An AEWCsite is under the principal of a Community Adult School, Regional Occupational Center, or Skills Center. A typical AEWCsite has the following staff: 1 outreach consultant, 2-4 teachers, 3-6 teacher assistants, and 1 school safety officer. 141 EXHIBIT C - 188 APPENDIX G SCHOOL STAFF AND RESOURCES School Staff (Continued) Support Personnel SUPPORT ALLOCATIONS-— 2013-14 Custodial personne! are allocated to schools based on a complex formula involving enrollment, building area, grounds, serviceto teachers,etc. Campusaidesare allocated to provide a minimumofsix (6) hours of supervision support to all Elementary, Middle, and Span schools. Additional allocations are made based upon security considerations. District-funded credentialed school librarians are allocated as follows. Additional allocations may be provided to schools based on District-determined criteria. Schools may purchase additional librarian time from their budget based on student needs. Enrollment FTE 1 - 699 0.2 700 ~— 999 0.4 1,000 - 1,499 0.6 1,500— 1,999 0.8 2,000 and above 1.0 District-funded credentialed school nurses are allocated as follows. additional nursing time from their budget based on student needs. Schools may purchase Day per Enrollment week 1 — 1,800 1.0 1,801 — 3,000 1.5 3,001 and above 2.0 School Psychologists and related personnelare allocated to schools based primarily on student population size and type of school. The followingallocations represent minimum requirements for genera! education K-12 schools. Elementary Schools Middle Schools Senior High Schools .25 day per week 4 day per week .5 day per week In combination with special education and general educations allocations, schools purchase additional psychological services based on need for services and the schools’ ability to fund the positions from categorical funds. Schools also purchase Pupil Services and Attendance Counselors based on both the need for child welfare and attendance services in the school population and the schools’ ability to fund the positions from categorical funds. 142 EXHIBIT C - 189 APPENDIX G SCHOOL STAFF AND RESOURCES School Resources Materiel and Supplies Allocation Rates Instructional materiel, school advisory committee expense funds, and various operational supplies are also allocated to schools accordingto fixed formulas. INSTRUCTIONAL MATERIEL Program 2011-12 Rate 2012-13 Rate Regular- K-6 $ 16.00 per Enrl. -$ 16.00 per Enrl. 7-8 20.00 per Enrl. 20.00 per Enr}. 9-12 22.00 per Enrl. 22.00 per Enrl. Instructional Materials Block Grant * * Community Adult School 20.00 per ADA 20.00 per ADA Options Programs 739.00 per Teacher 739.00 per Teacher Regional Occupational Centers and Skills Centers 30.00 per ADA 30.00 per ADA Regional Occupational Program 30.00 per ADA 30.00 per ADA Special Education — Special Day Classes — Special Education Schools 659.81 per Class 500.00 per Class Regular Schools 17.85 ** 17.00 ** Early Ed Centers 17.85 ** 200.00 per Special Day Program * - Allocations are determined based on schoals’ need. ** . Per active Individualized Education Program (IEP) in Welligent 143 EXHIBIT C - 190 SCHOOL STAFF AND RESOURCES School Resources (Continued) OPERATIONAL SUPPLIES Type Custodial, Gardening, and Other Operational! Supplies — Community Adult Schools Continuation Schools Opportunity Schools Regular Schools ROCsandSkills Centers ROP Special Education Administrative Sites OTHER Type School Community Advisory Council Expenses ~ Community Adult Schools ROCsandSkills Centers ROP APPENDIX G Materiel and Supplies Allocation Rates 2012-13 Rate $ 112.50 percustodial hour (separatesite) +3.20 per enrolled student (all sites) $ 32.65 per custodial hour +7.49 per enrolled student $ 75.50 per custodial hour +6.14 per enrolled student $. 132.60 per custodial hour +3.80 per enrolled student $ 130.00 per custodial hour +3.20 per enrolled student $ 130.00 per custodial hour +3.20 per enrolled student $ 53.95 per custodial hour +9.05 per enrolled student $ 204.00 per custodial hour 2012-13 Rate $ 300.00 per School $ 500.00 per School $ 500.00 per School 144 2013-14 Rate $ 112.50 per custodial hour (separate site) +3.20 per enrolled student (all sites) $ 32.65 per custodial hour +7.49 per enrolled student $ 75.50 per custodial hour +6.14 per enrolled student $ 132.60 per custodial hour +3.80 per enrolled student $ 130.00 per custodial hour +3.20 per enrolled student $ 130.00 per custodial hour +3.20 per enrolled student $ 53.95 per custodial hour +9.05 per enrolled student $ 204.00 per custodial hour 2013-14 Rate $ 300.00 per School $ 500.00 per School $ 500.00 per School EXHIBIT C - 191 APPENDIX H. DISTRICT ENROLLMENT TRENDS This section providesinformation and data related to the number of students served inthe Disteict’s schools, Fayollment and Enrollment Projections. To project enrollment, the Los Angeles Unified School District usesdata onlive births in Los Angeles County, historical yrade retenticn ratios, economic factors, and other relevantinformation. Estimated enrollments in grades| through 12 are calculated using a variety of sonarios, generallyinvolving weighted and true averages. The grade retention ratio nieasures the percentageofetudonts expected toprogress fo the next grade level from one year to the next, based onpast trends. Kindergarten enrollments arecaleulated as a percentage of live birthsin Los Angeles Countyfrom tive years eazlier. Farollment peaked in 2002-03 at 746,834,and has dectined each yearsince. ‘this is due to severalfactors,including the reduced birth rate in Los Angeles County and the increasing cost of living, including housing, insouthern California Declining enrollment affects hoth revenue und expenditures, However, declining enrollment typically causes amore capid decline in revenues after the first year. This because declining enrollment districtsare essentially“held harmless”for the decline from the previous year, Another contributing factor to the changein reventic andexpenditure Districtwide is the increasein the percentage of students enrolled in independent chartet schools. ‘The District's enrollment projections differentiate between students fiscally-independent charter and non-charter locations. This helps the District estimate the impact of fiscally-independent charter schiools on theDistrier’s budget. The fiscally-independentcharter schoo! data inelude both schools that have converted from non-charter 10 fiscafly-indopendont charter school status (“conversion charters") and schools that began their existenceas fiscally-independent charter schools ("start-up charters”. The chart below shows the increase 1n the number ofstideuts enrolled in independent charter schools over thepast decade. In vontast, the Districr’s total K-12 enrollment has declined over the: sameperiod. District Enroliment Trends 2001-02 to 2013-14 { {Projected} 300,000 200,000 100,000 independent Charters sistKaz 145 EXHIBITC - 192 EXHIBIT C - 193 E N R O L L M E N T P R O J E C T I O N S N o r m D a y En ro ll me nt - In cl ud in g I n d e p e n d e n t C h a r t e r Sc ho ol s 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8 20 08 -0 9 20 09 -1 0 20 10 -1 1 20 11 -1 2 20 12 -1 3 20 13 -1 4 20 14 -1 5 20 15 -1 6 Ac tu al Ac tu al Ac tu al Ac tu al Ac tu al Ac tu al Ac tu al Ac tu al Ac tu al Es ti ma te d Es ti ma te d Es ti ma te d L A C o u n t y - Li ve Bi rt hs L a g g e d 5 Ye ar s 15 6, 15 3 15 7, 39 1 15 3, 52 3 15 1, 16 7 15 2, 19 2 15 1, 50 4 15 0, 37 7 15 1, 83 7 15 1, 81 3 14 7, 68 4 13 9, 67 9 13 3, 16 0 G r a d e d E n r o l l m e n t Ki nd er ga rt en 55 ,2 34 54 ,4 62 52 ,4 52 50 ,8 22 50 ,8 77 51 ,1 93 51 ,6 38 52 ,8 46 53 .2 62 51 .7 31 48 .8 49 46 ,4 94 Gr ad e | 58 ,6 10 56 ,8 72 55 ,2 67 $3 ,5 43 52 ,3 05 51 ,7 98 51 ,9 04 51 ,6 92 $2 ,1 43 53 ,0 06 51 ,9 22 49 ,4 44 Gr ad e 2 59 ,6 32 56 .0 97 $4 ,2 22 53 ,0 82 $2 ,3 38 50 ,6 74 50 ,4 06 50 ,2 30 50 ,3 53 50 ,7 87 51 ,6 23 50 ,5 62 Gr ad e 3 59 ,2 54 56 ,5 30 53 ,3 48 51 ,8 14 51 ,4 18 50 ,3 76 49 ,1 65 48 ,9 46 48 ,7 36 48 ,8 55 49 ,2 76 50 ,0 86 G r a d e 4 60 ,2 88 56 ,5 68 53 ,6 18 $1 ,1 74 50 ,6 92 49 ,9 82 49 ,1 76 47 ,8 60 47 ,7 55 47 ,5 50 47 ,6 66 48 ,0 77 Gr ad e 5 60 ,6 04 57 ,5 31 54 ,2 05 51 ,7 87 50 ,2 06 49 ,4 30 49 ,2 04 48 ,1 26 47 ,0 68 46 ,9 42 46 ,7 18 46 ,8 09 G r a d e 6 56 ,1 17 56 ,2 62 53 ,0 89 50 ,5 59 49 ,2 46 47 ,6 22 47 ,2 21 47 ,2 49 46 ,0 20 45 ,0 00 44 ,8 70 44 ,6 48 Gr ad e 7 51 ,9 06 53 ,8 15 53 ,7 02 51 ,4 58 49 ,5 57 48 ,0 84 46 ,7 56 46 ,1 86 46 ,1 50 44 ,9 78 44 ,0 10 43 ,9 11 Gr ad e 8 54 ,5 24 50 ,2 62 51 ,8 37 51 ,9 85 50 ,4 52 48 ,5 95 47 ,1 25 46 ,0 62 45 ,2 95 45 ,2 59 44 ,1 08 43 ,1 58 G r a d e 9 70 ,4 77 71 ,0 56 67 ,8 16 66 ,6 43 67 ,0 29 63 ,5 49 60 ,4 39 58 ,9 20 55 ,8 72 55 ,6 96 56 ,4 06 55 ,7 06 Gr ad e 10 50 ,2 66 52 ,0 45 52 ,4 80 $1 ,7 49 51 ,9 00 $3 ,5 43 52 ,3 06 50 ,5 27 49 ,4 78 46 ,7 32 46 ,3 99 46 ,8 03 Gr ad e 11 39 ,5 14 40 ,3 03 42 ,3 99 43 ,5 36 43 ,0 82 43 ,8 84 45 ,0 40 43 ,4 77 42 ,3 08 41 ,4 30 39 ,1 30 38 ,8 51 Gr ad e 12 28 ,5 96 29 ,0 90 29 ,0 58 31 ,8 99 34 ,7 55 34 ,7 33 36 ,2 79 37 ,2 80 36 ,7 48 35 ,6 03 34 ,7 11 32 ,6 39 To ta l g r a d e d en ro ll me nt 70 5, 02 2 69 0, 89 3 67 3, 49 3 66 0, 05 1 65 3, 85 7 64 3, 46 3 63 6, 65 9 62 9, 40 1 62 1, 18 8 61 3, 56 9 60 5, 68 8 59 7, 18 8 K - 5 en ro ll me nt 35 3, 62 2 33 8, 06 0 32 3, 11 2 31 2, 22 2 30 7, 83 6 30 3, 45 3 30 1, 49 3 29 9, 70 0 29 9, 31 7 29 8, 87 1 29 6, 05 4 29 1, 47 2 6- 8 en ro ll me nt 16 2. 54 7 16 0, 33 9 15 8, 62 8 15 4, 00 2 14 9, 25 5 14 4, 30 1 14 1, 10 2 13 9, 49 7 13 7, 46 5 13 5, 23 7 13 2, 98 8 13 1, 71 7 9- 12 en ro ll me nt 18 8, 85 3 19 2, 49 4 19 1, 75 3 19 3, 82 7 19 6, 76 6 19 5, 70 9 19 4, 06 4 19 0, 20 4 18 4, 40 6 17 9, 46 1 17 6, 64 6 17 3, 99 9 To ta l g r a d e d en ro ll me nt 70 5, 02 2 69 0, 89 3 67 3, 49 3 66 0, 05 1 65 3, 85 7 64 3, 46 3 63 6, 65 9 62 9, 40 1 62 1, 18 8 61 3, 56 9 60 5, 68 8 59 7, 18 8 U n g r a d e d e n r o l l m e n t Sp ec ia l da y cl as se s in re gu la r sc ho ol s 28 ,5 82 27 ,4 86 26 ,7 13 26 ,3 28 26 ,3 50 26 ,4 65 26 ,3 08 25 ,8 51 25 ,6 91 25 ,1 99 24 ,5 74 23 ,8 23 Sp ec ia l da y cl as se s in sp ec ia l ed sc ho ol s 3, 98 4 3, 90 8 3, 67 3 3, 65 6 3, 60 4 3, 55 2 3, 55 5 3, 53 7 3, 29 1 3, 25 8 3, 22 5 3, 19 3 Co nt in ua ti on an d op po rt un it y sc ho ol s 4, 47 8 4, 93 2 4, 55 8 4, 24 2 4, 32 7 4, 96 1 5, 12 6 5, 44 4 5, 54 6 5, 46 2 5, 37 8 5, 29 4 N o n p u b l i c s c h o o l s 2 4 10 2 4 11 To ta l u n g r a d e d en ro li me nt 37 ,0 68 36 ,3 36 34 ,9 68 34 ,2 37 34 ,2 81 34 ,9 78 34 ,9 89 34 ,8 32 34 ,5 28 33 ,9 19 33 ,1 77 32 ,3 10 0 0 To ta l g r a d e d a n d u n g r a d e d en ro ll me nt 74 2, 09 0 72 7, 22 9 70 8, 46 1 69 4, 28 8 68 8, 13 8 67 8, 44 1 67 1, 64 8 66 4, 23 3 65 5, 71 6 64 7, 48 8 63 8, 86 5 62 9, 49 8 14 6 EXHIBIT C - 194 E N R O L L M E N T P R O J E C T I O N S N o r m D a y E n r o l l m e n t - I n d e p e n d e n t C h a r t e r S c h o o l s O n l y 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8 20 08 -0 9 20 09 -1 0 20 10 -1 1 20 11 -1 2 20 12 -1 3 20 13 -1 4 20 14 -1 5 20 15 -1 6 A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l E s t i m a t e d E s t i m a t e d E s t i m a t e d L A C o u n t y - Li ve Bi rt hs L a g g e d 5 Y e a r s 15 6, 15 3 15 7, 39 1 15 3, 52 3 15 1, 16 7 15 2, 19 2 15 1, 50 4 15 0, 37 7 15 1, 83 7 15 1, 81 3 14 7, 68 4 13 9, 67 9 13 3, 16 0 G r a d e d E n r o l l m e n t Ki nd er ga rt en 2, 05 9 2, 35 7 = 2, 55 6 2, 75 5 3, 09 6 3, 59 9 4, 70 4 5, 16 9 5, 43 2 5, 77 5 6, 13 2 6, 48 9 G r a d e 1 1, 83 6 2, 12 5 2, 38 2 2, 66 2 2, 90 7 3, 34 1 4, 17 4 4, 82 3 5, 13 5 5, 70 9 6, 22 1 6, 73 2 G r a d e 2 1, 64 0 1, 95 2 2, 27 2 2, 48 1 2, 74 9 3, 03 6 3, 78 2 4, 19 0 4, 75 2 5, 22 8 5, 71 0 6, 19 2 G r a d e 3 1, 58 0 1, 89 0 = 2, 10 1 2, 37 6 2, 64 8 2, 82 8 3, 42 7 3, 83 1 4, 18 3 4, 74 2 5, 18 0 5, 61 9 G r a d e 4 1, 54 8 1, 80 3 2, 00 0 2, 23 8 2, 57 4 2, 79 2 3, 25 9 3, 56 4 3, 96 6 4, 36 9 4, 73 9 5, 10 9 G r a d e 5 1, 75 5 1, 84 4 2, 16 4 2, 45 2 2, 73 8 3, 14 1 3, 55 2 3, 93 0 4, 27 2 5, 05 8 5, 56 0 6, 06 2 Gr ad e 6 1, 76 0 2, 27 0 = 2, 77 4 3, 21 6 4, 30 4 4, 99 8 5, 85 5 7, 14 4 7, 31 0 9, 30 9 10 ,4 60 11 ,6 12 Gr ad e 7 1, 19 7 1. 78 1 = 2, 23 4 2, 82 5 3, 42 6 4, 35 4 5, 27 6 6, 51 5 7, 25 5 7, 77 2 8, 60 4 9, 43 6 Gr ad e 8 1, 05 4 1, 18 0 = 1, 69 7 2, 08 7 2, 70 5 3, 27 3 4, 19 3 5, 43 0 6, 26 7 7, 46 2 8, 55 2 9, 64 1 G r a d e 9 3, 98 7 4, 77 1 5, 70 9 6, 65 6 7, 97 3 9, 43 3 9, 82 2 11 ,0 40 11 ,6 04 12 ,3 00 13 ,1 26 13 .9 52 G r a d e 10 2, 37 7 3, 43 6 4, 03 4 4, 93 7 6, 70 9 7, 82 4 8, 44 1 10 ,1 51 10 ,4 07 11 ,2 39 12 ,1 72 13 ,1 04 G r a d e 11 1, 70 6 2, 07 3 = 2, 97 9 3, 65 6 5, 26 6 6, 52 8 7, 11 0 8, 98 7 9, 45 4 10 ,0 00 10 ,9 63 11 ,9 27 G r a d e 12 1, 12 5 1, 38 7 _1 ,8 00 2, 50 5 3, 77 0 5, 12 2 5, 89 2 7, 51 9 8, 52 9 9, 24 9 10 ,3 68 11 ,4 87 To ta l g r a d e d en ro ll me nt 23 ,6 24 28 ,8 69 34 ,7 02 40 ,8 46 50 ,8 65 60 ,2 69 69 ,4 87 82 ,2 93 88 ,5 66 98 ,2 12 10 7, 78 7 11 7, 36 2 K - 5 en ro ll me nt 10 ,4 18 11 ,9 71 13 ,4 75 14 ,9 64 16 ,7 12 18 ,7 37 22 ,8 98 25 ,5 07 27 ,7 40 30 ,8 81 33 ,5 42 36 ,2 03 6- 8 en ro ll me nt 4. 01 1 5, 23 1 6, 70 5 8, 12 8 10 ,4 35 12 ,6 25 15 ,3 24 19 ,0 89 20 ,8 32 24 ,5 43 27 ,6 16 30 ,6 89 9- 12 en ro ll me nt 9, 19 5 11 ,6 67 14 ,5 22 17 ,7 54 23 ,7 18 28 ,9 07 31 ,2 65 37 ,6 97 39 ,9 94 42 ,7 88 46 ,6 29 50 ,4 70 To ta l g r a d e d en ro ll me nt 23 ,6 24 28 ,8 69 34 ,7 02 40 ,8 46 50 ,8 65 60 ,2 69 69 ,4 87 82 ,2 93 88 ,5 66 98 ,2 12 10 7, 78 7 11 7, 36 2 U n g r a d e d en ro ll me nt Sp ec ia l da y cl as se s in re gu la r sc ho ol s 22 8 2 6 8 2 5 9 2 2 7 2 2 2 37 4 44 8 49 5 $4 6 36 8 36 2 3 6 0 Sp ec ia l da y cl as se s in sp ec ia l ed sc ho ol s Co nt in ua ti on an d op po rt un it y sc ho ol s No np ub li c sc ho ol s To ta l u n g r a d e d en ro ll me nt 2 2 8 2 6 8 2 5 9 2 2 7 22 2 3 7 4 4 4 8 4 9 5 $ 4 6 3 6 8 3 6 2 3 6 0 To ta l g r a d e d a n d u n g r a d e d en ro ll me nt 23 ,8 52 29 ,1 37 34 ,9 61 41 ,0 73 51 ,0 87 60 ,6 43 69 ,9 35 82 ,7 88 89 ,1 12 98 ,5 80 10 8, 14 9 11 7, 72 2 1 6 7 EXHIBIT C - 195 E N R O L L M E N T P R O J E C T I O N S N o r m D a y E n r o l l m e n t - E x c l u d i n g I n d e p e n d e n t C h a r t e r S c h o o l s 20 04 -0 5 20 05 -0 6 20 06 -0 7 20 07 -0 8 20 08 -0 9 20 09 -1 0 20 10 -1 1 20 11 -1 2 20 12 -1 3 20 13 -1 4 20 14 -1 5 20 15 -1 6 A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l A c t u a l E s t i m a t e d E s t i m a t e d E s t i m a t e d L A C o u n t y - Li ve Bi rt hs L a g g e d 5 Y e a r s 15 6, 15 3 15 7, 39 1 15 3, 52 3 15 1, 16 7 15 2, 19 2 15 1, 50 4 15 0, 37 7 15 1, 83 7 15 1, 81 3 14 7, 68 4 13 9, 67 9 13 3, 16 0 G r a d e d E n r o l l m e n t Ki nd er ga rt en 53 ,1 75 52 ,1 05 49 ,8 96 48 ,0 67 47 ,7 81 47 ,5 94 46 ,9 34 47 ,6 77 47 ,8 30 45 ,9 56 42 ,7 17 40 ,0 05 . Gr ad e 1 56 ,7 74 54 ,7 47 52 ,8 85 50 ,8 81 49 ,3 98 48 ,4 57 47 ,7 30 46 ,8 69 47 ,0 08 47 ,2 97 45 ,7 01 42 ,7 12 G r a d e 2 57 ,9 92 54 .1 45 51 ,9 50 50 ,6 01 49 ,5 89 47 ,6 38 46 ,6 24 46 ,0 40 45 ,6 01 45 ,5 59 45 ,9 13 44 ,3 70 G r a d e 3 57 ,6 74 54 ,6 40 51 ,2 47 49 ,4 38 48 ,7 70 47 ,5 48 45 ,7 38 45 ,1 15 44 ,5 53 44 ,1 13 44 ,0 96 44 ,4 67 G r a d e 4 58 ,7 40 54 ,7 65 51 ,6 18 48 ,9 36 48 ,1 18 47 ,1 90 45 ,9 17 44 ,2 96 43 ,7 89 43 ,1 8] 42 ,9 27 42 ,9 68 G r a d e 5 58 ,8 49 55 ,6 87 52 ,0 41 49 ,3 35 47 ,4 68 46 ,2 89 45 ,6 52 44 ,1 96 42 ,7 96 41 ,8 84 41 ,1 58 40 ,7 47 G r a d e 6 54 ,3 57 53 ,9 92 50 ,3 15 47 ,3 43 44 ,9 42 42 ,6 24 41 ,3 66 40 ,1 05 38 ,7 10 35 ,6 91 34 ,4 10 33 ,0 36 G r a d e 7 50 ,7 09 52 ,0 34 51 ,4 68 48 ,6 33 46 ,1 31 43 ,7 30 41 ,4 80 39 ,6 71 38 ,8 95 37 ,2 06 35 ,4 06 34 ,4 75 Gr ad e 8 53 ,4 70 49 ,0 82 50 ,1 40 49 ,8 98 47 ,7 47 45 ,3 22 42 ,9 32 40 ,6 32 39 ,0 28 37 ,7 97 35 ,5 56 33 ,5 17 Gr ad e 9 66 ,4 90 66 ,2 85 62 ,1 07 59 ,9 87 59 ,0 56 54 ,1 16 50 ,6 17 47 ,8 80 44 ,2 68 43 ,3 96 43 ,2 80 41 ,7 54 Gr ad e 10 47 ,8 89 48 ,6 09 48 ,4 46 46 ,8 12 45 ,1 91 45 ,7 19 43 ,8 65 40 ,3 76 39 ,0 71 35 ,4 93 34 ,2 27 33 ,6 99 Gr ad e 11 37 ,8 08 38 ,2 30 39 ,4 20 39 ,8 80 37 ,8 16 37 ,3 56 37 ,9 30 34 ,4 90 32 ,8 54 31 ,4 30 28 ,1 67 26 ,9 24 G r a d e 12 27 ,4 71 27 ,7 03 27 ,2 58 29 ,3 94 30 ,9 85 29 ,6 11 30 ,3 87 29 ,7 61 28 ,2 19 26 ,3 54 24 ,3 43 21 ,1 52 To ta l g r a d e d en ro ll me nt 68 1, 39 8 66 2, 02 4 63 8, 79 1 61 9, 20 5 60 2, 99 2 58 3, 19 4 56 7, 17 2 54 7, 10 8 53 2, 62 2 51 5, 35 7 49 7, 90 1 47 9, 82 6 K - 5 en ro ll me nt 34 3, 20 4 32 6, 08 9 30 9, 63 7 29 7, 25 8 29 1, 12 4 28 4, 71 6 27 8, 59 5 27 4, 19 3 27 1, 57 7 26 7, 99 0 26 2, 51 2 25 5, 26 9 6- 8 en ro ll me nt 15 8, 53 6 15 5, 10 8 15 1, 92 3 14 5, 87 4 13 8, 82 0 13 1, 67 6 12 5, 77 8 12 0, 40 8 11 6, 63 3 11 0, 69 4 10 5, 37 2 10 1, 02 8 9- 12 en ro ll me nt 17 9, 65 8 18 0, 82 7 17 7, 23 1 17 6, 07 3 17 3, 04 8 16 6, 80 2 16 2, 79 9 15 2, 50 7 14 4, 41 2 13 6, 67 3 13 0, 01 7 12 3, 52 9 To ta l g r a d e d en ro ll me nt 68 1, 39 8 66 2, 02 4 63 8, 79 1 61 9, 20 5 60 2, 99 2 58 3, 19 4 56 7, 17 2 54 7, 10 8 53 2, 62 2 51 5, 35 7 49 7, 90 1 47 9, 82 6 U n g r a d e d en ro ll me nt Sp ec ia l da y cl as se s in re gu la r sc ho ol s 28 ,3 54 27 ,2 18 26 ,4 54 26 ,1 01 26 ,1 28 26 ,0 91 25 ,8 60 25 ,3 56 25 ,1 45 24 ,8 31 24 ,2 12 23 ,4 63 Sp ec ia l d a y cl as se s in sp ec ia l e d sc ho ol s 3 , 9 8 4 3 , 9 0 8 3 , 6 7 3 3 . 6 5 6 3 , 6 0 4 3 , 5 5 2 3 , 5 5 5 3 . 5 3 7 3. 29 1 3 , 2 5 8 3 , 2 2 5 3 , 1 9 3 C o n t i n u a t i o n a n d o p p o r t u n i t y sc ho ol s 4 , 4 7 8 4 , 9 3 2 4 , 5 5 8 4 , 2 4 2 4 . 3 2 7 4, 96 1 5 . 1 2 6 5 , 4 4 4 5 . 5 4 6 5 . 4 6 2 5 , 3 7 8 § , 2 9 4 N o n p u b l i c sc ho ol s 2 4 10 2 4 11 0 0 To ta l u n g r a d e d en ro ll me nt 36 ,8 40 36 ,0 68 34 ,7 09 34 ,0 10 34 ,0 59 34 ,6 04 34 ,5 41 34 ,3 37 33 ,9 82 33 ,5 51 32 ,8 15 31 ,9 50 T o t a l g r a d e d a n d u n g r a d e d e n r o l l m e n t 7 1 8 , 2 3 8 6 9 8 , 0 9 2 6 7 3 , 5 0 0 6 5 3 , 2 1 5 6 3 7 , 0 5 1 6 1 7 , 7 9 8 6 0 1 , 7 1 3 5 8 1 , 4 4 5 5 6 6 , 6 0 4 § 4 8 , 9 0 8 § 3 0 , 7 1 6 5 1 1 , 7 7 6 1 4 8 APPENDIX I LAUSD BUDGET AND FINANCE POLICY Purposeof the Budget and Finance Policy The California School Accounting Manual, the State’s financial guide for school districts, defines a budget as "a plan offinancial operation consisting of an estimate of proposed income and expenditures for a given period and purpose". It is through the budgetthat the Board and Superintendentset priorities and allocate resources. California schooldistricts, including LAUSD,are boundbylegal requirements, administrative regulations, and oversight protocols during the budget process. Theseinclude: Legal Requirements for Budget ¢ Budgets must show a plan forall proposed expenditures of the schooldistrict andofall estimated revenuesforthe fiscal year (Education Code 42122). * Schooldistricts must chooseeither a single or dual budget adoption schedule. Single- adoption districts must approvea “final budget” by June 30, but may continue to amendthe budget throughoutthe fiscal year as needed. Dual-adoptiondistricts approvea preliminary budgetby June 30 and a final budget by September 8, but may continue to amendthe budget throughoutthe fiscal year as needed. * Schooldistricts may not spend morethan authorizedin the adopted Final Budgetas adjusted during the fiscal year (Education Code 42600). Administrative Regulations for Budget * The California Schoo] Accounting Manual, publishedby the State Department of Education, provides detailed definitions of income and expenditure categories together with approved budget and accountingpractices. * Each year the SuperintendentofPublic Instruction issues budget and expenditure documents that specify the income and expenditure categories to be reflected in each schooldistrict budget. Oversight Processes for Budget * The Los Angeles County Office of Education (LACOE) monitors the financial health ofthe District with oversight and review from the Superintendentof Public Instruction (Education Code 33127, 33128, 42120 et. seq., 42637). * Should a district’s financial condition deteriorate below theState’s standards, LACOEis authorized to take corrective action. This could include assuming managementofthat District’s financial affairs (Education Code 42127.3). The District must also comply with the Governmental Accounting Standards Board (GASB)’s accounting standards and rules the. The budget process should also strive to meetthe GovernmentFinance Officers Association (GFOA)’s best practices for finance, accounting, and budgeting by governmentagencies. 149 EXHIBIT C - 196 APPENDIX I LAUSD BUDGET AND FINANCE POLICY Consistent with State law and regulation, the LAUSD budgetis developed, adopted, refined and reviewed ona timely basis, through an annual cycle, as highlighted by the table below. Timetable ofLAUSD BudgetProcess Timing Activity December * First Interim Report released -projects current year revenues, expenditures, & balances. January * Governor proposes State Budget for nextfiscal year to the Legislature ¢ District Staff analyzes Governor's Proposed State Budget for Board + District staffpresents enrollmentprojections to Board March * Controller presents Second Interim Report projecting current year revenues, expenditures, & balances * Budget Services &Financial Planning Division presents District's 3-year financial forecast to Board * Board discusses recommendationsfor BudgetIssues ° Regular Program funding levels presented April ¢ Board receives input from stakeholders regarding next year's budget + Board votes on adoption ofBudgetIssues for next year's budget May * Governorreleases May Revision ofproposed State Budget ° Categorical Funding levels presented * Monies allocated to multi-track year round schools June *__ Board adopts Final Budget for coming year -| June/July/August * State budget adopted * Ifnecessary, Board holds special meetings to consider changes to Final Budget *___ Monies allocated to single-track schools 150 EXHIBIT C - 197 APPENDIX I LAUSD BUDGET AND FINANCE POLICY Finance and Budget Policy To assist the Board of Education in making soundpolicy, guide the developmentofthe District’s budget, enhance the managementof the District’s finances, minimize the risk of LACOE action, and reduce potential audit concerns, the Board has adopted this Finance and Budget Policy whichis based on five core principles. The budget should: 1, Reflect District policies and goals. 2 Bebased onsoundfinancial principles. 3 Beclear and easy to understand. 4. Betimely, and easy to manageatthe schoo!level. 5 Be based on process that informs stakeholders. This policy was developed after reviewing the document “Recommended Budget Practices” developed by the Government Finance Officers Association. Thepolicy is also consistent with the standards andcriteria established by the State Board ofEducation (Education Code Sections 33127, 33128), as well as current GASBrules and standards. Tothe extent that LAUSD’s current budgeting and accounting practices are not in compliancewith this policy, implementationofthis policy is to be phased in. The Finance and BudgetPolicyis a “living document.” LAUSD expects that it will evolve over time to best connectDistrict policy, budgeting, and financingprinciples. Principle One: The budget should be based on the goals ofthe Board andSuperintendent. All units of governmentare charged with fulfilling their programmatic mission while maintainingfiscal integrity. The Board and Superintendent have the primary responsibility for developing and articulating the District’s goals consistent with this charge. As the budgetis developed and presented, these goals should be considered. Principle Two: The budget should be based on soundfinancialprinciples. LAUSD’sbudgetshould be based onfinancial principles thatwill keep the District financially viable andable to sustain its key programs over time. The following specific financial principles, based on law, expert advice and experience, are offered to this end. a) Balanced Operating Budget b) Appropriate Use ofOne-Time Revenues c) Alignment of Budget with Expected Expenditures d) Adequate Reserves e) Revenue Maximization f) Revenue Estimation 151 EXHIBIT C - 198 A) B) g) h) i) J) k) ) APPENDIX I LAUSD BUDGET AND FINANCE POLICY Cost Recovery Through Fees and Charges Multi-Year Capital Plan and Budget Asset Management Equipment Replacement Prudent Debt Management Program Sustainability m) GASB Compliance BALANCED OPERATING BUDGET LAUSDshould havea balanced budget becauseit is sound financial policy and because it is required by law. State law requires the Superintendent to annually prepare and recommend a balanced budget where operating revenuesare equal to, or exceed, operating expenditures (Education Code Sections 42100, 42127.5). Any year-end operating surpluses will be used in the following year to maintain reservelevels set by policy for equipment and/or other “one-time only” General Fund expenditures. Any exception to this policy shall be clearly identified in the proposed budget, showing the magnitudeofthe exception and the reasonforit. LAUSDshall manage the operating budget in a manner that balances revenues and expenditures under normal operating conditions. Annual appropriations shall be made to responsibly addressall identified liabilities, including pension, vacation accrual, workers’ compensation, and asset replacement needs. The District shall strive to adopt a “pay-as-you-go” approachto balancingits current expense budget and limit debt financing to capital items. The Office of the Chief Financial Officer shall prepare the First Period Interim Financial Report and the Second Period Interim Firiancial Report in accordance with the law. The Office of the Chief Financial Officer shall also make appropriate recommendations to the Boardif financial adjustments are necessary. APPROPRIATE USE OF ONE-TIME REVENUES Ongoing expenditures ofLAUSD should not exceed ongoing revenues. To the extent feasible, one-time revenues will be applied toward one-timeexpenditures. By definition, one-time revenues cannotberelied on in future budget periods. This policy on the use of one-time revenues provides guidance to minimizedisruptive effects on services due to non-recurrenceof these sources. The Chief Financial Officer shall be responsible for identifying one-time revenues and expenditures and for making recommendations regarding their use. 152 EXHIBIT C - 199 C) D) APPENDIX I LAUSD BUDGET AND FINANCE POLICY Any newor unanticipated unrestricted revenues recognized during thefiscal year should be applied to reduce any operating imbalance, before being used for other purposes. ALIGNMENT OF BUDGET WITH EXPECTED EXPENDITURES It is expected that actual expenditures will closely approximate the appropriation. To the extent that funding is required for expendituresthat span fiscal years, appropriate financial techniques should be identified and employed. ADEQUATE RESERVES LAUSDshallstrive to maintain certain reserve funds to provide financial stability and accounts to provide for replacementofdepreciated equipment. These reserve funds shall be for operationsor forliabilities, and shall include: Operating Reserves: The purposeofoperating reserves is to set aside monies for current year obligations. These reserves include: - Reserve for Anticipated Balances - Emergency Reserve ¢ Reserve for Economic Uncertainties - Reserves for Revolving Cash, Stores, and Prepaid Expenditures Liability Reserves: The purposeofthe Liability Reserves is to set aside moniesfor legally mandated,but currently unfunded obligationsofthe District. Liability reserves include: * Liability Self-Insurance Account * Workers Compensation Fund ~ UnfundedLiability * Health & Welfare Fund- Retirement Benefits for Active Employees - Health & Welfare Fund — Retirement Benefits for Retired Employees Other reserves may be created as necessary. When a reserveis created, the Board will be informed ofthe reason for it and how it will ultimately be used. Newly established reserves shall be phased-in over a period of years to be determined. Operating Reserves: The purposeofthe operating reservesis to stabilize the District’s operating budgetin the face of uncertainties. Ideally the Board, Superintendent, and Chief Financial Officer shall strive to fund the combination of operating reservesidentified aboveata level which is 5% or more of General Fund Regulat Program revenues. This level is consistent with the bondrating criteria of Fitch Ratings, Moody’s Investors Service, and Standard 153 EXHIBIT C - 200 APPENDIX I LAUSD BUDGET AND FINANCEPOLICY and Poor’s. Fundinglevels of reserves shall be reviewed annually and adjusted as appropriate. Reserve for Anticipated Balances: At the timethe final budget is adopted,District staff will provide estimates ofunexpended appropriation authority within the General Fund Regular Program. These estimates will be used to create an expenditure budget that more accurately reflects the District’s actual expenditure expectations and expectations regarding the ending balance. The reserve for anticipated balances that is created bythis processshall be in addition to other reserves noted in this section and cannot be made available for any other use unless the underlying appropriation authority is reduced. These reserves should be funded at an aggregate, major object codelevel of appropriation (e.g., 1000 ~ Certificated Salaries, 2000 — Classified Salaries, 3000 —- Employee Benefits, 5000 — Services, 6000 — Capital Outlay, 7000 ~ Other Outgo). Emergency Reserve: LAUSDwillstrive to maintain a General Fund Regular Program emergency reservein years of good funding. The minimum fundinggoalofthis reserve is 2% General Fund Regular Program revenues. The Emergency Reserveis available to fund one-time emergency, unanticipated expenditure requirements,or offset unanticipated revenue fluctuations occurring within a fiscal-year. The Board may approve withdrawal of funds from the emergencyreserveafter the Chief Financial Officer finds that the General Fund’s budgeted balanceswill be exhausted during the fiscal year. The emergencyreserve will only be accessed when the result of emergency expenditures or an unexpected revenue reduction would likely result with a negative ending fund balance for the General Fundat the endofthe fiscal year. Restoration ofthe Emergency Reserveswill begin the fiscal year following their use. The Chief Financial Officer will recommendan appropriate level of funding to the Board. This planned reserveis intended to be in addition to the reserve for economic uncertainty. Reserve For Economic Uncertainties: This General Fund Regular Program reserve is required by State law. The minimum funding ofthis reserve is 1% ofGeneral Fund Regular Program appropriations. The Reserve For Economic Uncertainties will be budgeted and appropriated annually to avoid the need for service level reductions in the event an economic downturn causes revenues to comein lower than budget. (For 2003- 04 and 2004-05, districts have been allowed to reducethis reserve to 0.5% of the General Fund Regular Program budget.) Reserves for Revolving Cash, Stores, and Prepaid Expenditures: TheDistrict’s current accountingpractice establishes a reserve for revolving cash,stores, and prepaid expenditures. This reserve will be continued as operating reserves under the proposed policy. 154 EXHIBIT C - 201 APPENDIX I LAUSD BUDGET AND FINANCE POLICY Liability Reserves: The purposeofthe Liability Reservesis to set aside monies for legally mandated, future obligationsofthe District. Fully funding these reserves over time can prevent disruptive reductions to LAUSDoperating programsthat could occur ifthe liabilities were not funded in a timely fashion. Liability Self Insurance Fund: The General Fundshall make annualcontributions to the Liability Self Insurance Fundto set aside resources for potential costs not covered by the District’s other insurance programs. Historically, the Liability Self Insurance Fund has covered legalliability settlements other than workers’ compensation. It has not covered settlements and judgments associated with school construction (which are covered elsewhere), or major costs associated with disasters orotherfiscally negative events that are not reimbursable from insurance or from the Federal or State government. Each year, the Chief Financial Officer shall recommend to the Board an appropriate level of funding for the Liability Self Insurance Fund. The Board will strive to maintain the Fund in an amountconsistent with uninsured obligations. Workers’ Compensation Fund: An employee whois injured onthe job may receive medical treatment and partial replacementof lost income for a short time or a period of many years, depending onthe natureofthe injury. The total cost of workers’ compensation claims should be estimated and fundedin the year the claim is incurred. This fund should equal the actuarially determined liability associated with workers compensation claims. Each year, the Chief Financial Officer shall recommendto the Board an appropriate level of funding for the Workers Compensation Fund. Health & Welfare Fund: Retirement Benefits for Active Employees: Most active LAUSDemployees havethe prospect of receiving medical, dental and vision benefits after retirement. Historically, LAUSD has funded these benefits on a pay-as-you-go basis. New accounting mules require that the District estimate andfully disclose the amount these benefits are likely to cost in the future. Each year, the Chief Financial Officer shall recommend to the Board an appropriate level of funding for the Health & Welfare Fund. The Boardwill strive to accumulate resources over time with the ultimate goaloffully reserving the amount needed for these benefits. Health & Welfare Fund: Retirement Benefits for Retired Employees: Mostretired LAUSDemployees receive District-funded medical, dental andvision benefits, coordinated with federal Medicare benefits. Historically, LAUSD has funded these benefits on a pay-as-you-go basis. New accounting rules require that we estimate and fully disclose the amount these benefits are likely to cost in the future. Each year, the Chief Financial Officer shall recommendto the Board an appropriate level of funding for the Health & Welfare Fund. The Boardwill strive to accumulate resources over time with the ultimate goaloffully reserving the amount needed for these benefits. 155 EXHIBIT C - 202 E) G) APPENDIX I LAUSD BUDGET AND FINANCE POLICY SPECIAL RESERVE FUND FOR EQUIPMENT REPLACEMENT This Fund is neededto replace aging vehicles, computers and other equipment which havereachedthe endoftheir useful lives. To this end, there should be a Special Reserve Fund for Equipment Replacementwhichis maintained at a rate based on accumulated depreciation determined by the Chief Financial Officer. REVENUE MAXIMIZATION LAUSDreceives the majority of its funding from the State of Califomia. To supplement these funds LAUSDshall seek additional revenue from a variety of sources including the Federal Government, Foundations, Corporations, parent and community organizations and through changesto legislation. These additional resources should be for purposes thatare consistent with the District’s goals and objectives and which complement the LAUSD’sresources. LAUSDshall also seek the approvalof granting agencies to provideflexibility in the use of scarce resources. In addition, LAUSDshall aggressively pursue reimbursement for state-mandatedcosts. REVENUE ESTIMATION Developing a revenue budgetis complicated by the fact that there may be significant delays between the time the District develops an expectation thatit will receive revenue, the time a specific commitmentis madeto provide the revenue, and the time the revenue is actually received. It is appropriate to include revenue in the budgetbefore a specific funding commitment is madeandthe fundsare actually received. However, it may be necessary to withhold the authority to spend part orall of the budgeted revenue until there is morecertainty aboutits receipt. The Chief Financial Officer shall strive to include in the budget all revenues that can reasonably be expected for the fiscal year. The Chief Financial Officer shall appropriate funds for expenditure based ona prudent assessmentofthe risks associated with each revenue source. CosT RECOVERY THROUGH FEES AND CHARGES LAUSD maycharge fees to recovercosts of certain services, such as those provided to charter schools. LAUSDshall set fees so that they coverthe entire costofthe service provided. All costs (direct and indirect) shall be considered in establishing the appropniate fee. LAUSDwill set the amountofa feeatits discretion and shall cover all appropriate costs subject to any legal restrictions. MULTI-YEAR CAPITAL PLAN AND BUDGET In addition to its ongoing operating programs forinstruction and support, LAUSD conducts a very sizable program to build and refurbish facilities and systems. Consistent 156 EXHIBIT C - 203 K) L) APPENDIX I LAUSD BUDGET AND FINANCE POLICY with this responsibility, LAUSD will strive to provide comprehensive planning and budgeting for its capital needs by: * Developing,on a periodic basis, a Statement ofNeedfor capital programs. * Annually adopting a multi-year capital budget that identifies the projects planned, the estimated cost of each project, the expected sources of revenue for each project, and the fiscal year or years in whichproject funds must be committed. * Annually presenting an analysis of the future operational impact of the capital projects. ASSET MANAGEMENT TheDistrict shall: - Budget appropriate amounts so that physical assets are properly maintained and replaced when needed. * Maintain inventories of assets and the condition of major assets assessed on a regular basis to develop appropriate replacement and maintenance programs. * Prepare a maintenance plan that identifies the commitment needed to maintain the valueofits assets and protect the health and safety of students and employees. - Annually estimate and set aside resources for preventative maintenance. PRUDENT DEBT MANAGEMENT LAUSDshall adhere to the Debt ManagementPolicy as adopted by the Board of Education. PROGRAM SUSTAINABILITY LAUSD’smission is long-term and ongoing. To meetits near and longer-term goals, the District should plan and budget resources and commitments in a waythat provides a sustainable approachto its mission. To achieve this sustainability, LAUSD should strive to: * Link multi-year programsto multi-year funding. When funding is non-continuous, the program should be identified as non-sustainable. * Set parameters for multi-year programs and offices by identifying specific “sunset dates” for program termination as well as the ending date for personnel assignments fundedin the program. * Identify programs as either mandatory or discretionary. If mandatory, there will be disclosure ofthe legal source to the mandate. * Make defined fiscal commitments rather than open-ended commitments (e.g. fund health benefits at a specific cost level rather than a specific servicelevel). * Identify impact on the budget of unfunded mandates andother spendingpressures. 157 EXHIBIT C - 204 APPENDIX I LAUSD BUDGET AND FINANCE POLICY M) GASB STANDARDSFORFINANCIAL ACCOUNTING AND REPORTING The Governmental Accounting Standards Board promotesrules governing financial accounting and reporting. LAUSDshall strive to comply with these rules.It will be an ongoing goal ofLAUSDtostrive to receive the GFOA Certificate for Excellence in Financial Reporting each year. For example, in order to comply with the requirements of the Governmental Accounting Standards Board, the District will soon be required to disclose the amount we owe our employees for vacation or sick time they have not yet used. It is prudent to book this liability as an expense annually. Principle Three: The budget should be clear and easy to understand. A broad cross-section ofstakeholders in the District rely on LAUSD’s budget and related financial documents for crucial financial information. These stakeholders include administrators, teachers, parents, community groups and oversight bodies. LAUSD’s budget should be organized andpresentedin such a waythat both lay persons and experts can understand: ¢ Whatthe District intends to do and how it intendsto doit * The District’s overall financial condition * Thehistorical context for LAUSD programs The budget must meet requirements under State statute including those related to structure, presentation, and form. In addition, LAUSD should strive to develop its annual budget in a manner consistent with the GFOA standards for budget presentation. These guidelines are established to provide appropriate disclosure of financial information to the public and other interested parties, while facilitating management decisions on program expenditures. Consistent with the GFOA standards, LAUSDhasidentified guidelines for the presentation of budgets. These standards provided guidance for development of LAUSD’s budgets from four perspectives, as a: 1. Policy Document 2. Financial Plan 3. Operations Guide 4. Communications Device A) GUIDELINES FOR LAUSD BUDGETAS A POLICY DOCUMENT LAUSD’s budget should include an overview messagethatarticulates priorities and issues for the budget for the new fiscal year. The message should also providea clear statement of organization-widefinancial and programmatic policies and goals that address long-term 158 EXHIBIT C - 205 B) C) APPENDIX I LAUSD BUDGET AND FINANCE POLICY concerns andissues. The budget should describe the District’s short-term financial and operationalpolicies that guide the developmentof the budget for the upcoming year. GUIDELINES FORLAUSD BUDGETASAFINANCIAL PLAN As a blueprintfor the financial implications of LAUSD’s annualplan, the budget should provide fiscal information suchas the following: * Present a summary of major revenues and expenditures, as well as other sources anduses, to provide an overview oftotal resources budgeted by the organization. ¢ Include summaries of revenues, other resources, and expenditures for the prior year, current year and budgetyear. ¢ Identify self-funded enterprise operations and set goals for their level of financial self- sufficiency. * Explain the underlying assumptions for the revenue estimates and discuss significant revenuetrends. * Identify funding by: o Source, including Federal, State, Local, Non-Profit, or other. o Type, including general fund, special fund-restricted by external agency, special fund-restricted by LAUSDpolicy, or other. + Estimate projected changes in fund balances and fund balances available for appropriation. * Includeor be accompanied by a budgetfor capital expenditures anda list of majorcapital projects for the budget year and describe the impactof capital spending onthe current and future operating budgets. * Include financial data on current debt obligations and therelationship between current debt levels and statutory limitations. GUIDELINES FORLAUSD BUDGETAS AN OPERATIONS GUIDE Once adopted, the budget will become a key guide to LAUSD’s operations. The budget should: * Describe activities, services or functions carried out by organizational unit and by program. (This information need notbe in the main budget documentbut should be accessible to all operating units of the District and any personinterested in the District’s finances.) ¢ Include an organization chart for the entire organization. * Provide a schedule or summary tables of personnelor position counts for the prior and current budget years, including description of significant changes. 159 EXHIBIT C - 206 APPENDIX I LAUSD BUDGET AND FINANCE POLICY D) GUIDELINES FOR LAUSD BUDGETAS A COMMUNICATION DEVICE One of LAUSD’s budget’s most importantroles is as a communications tool The document must meetthe needs of a wide and varied audience. The budgetshould: Provide Context * Provide a summary of information, including issues, trends and choices as an executive summary or “Popular Budget”. * Describe the process for preparing, reviewing, and adopting the budgetfor the coming fiscal year. * Includestatistical and supplemental demographic data to describe LAUSDand the community it serves. Include Visual Aids * Offer visually inviting graphs, charts, and formatting to enhance understanding and usability of the document. * Include a glossary for any terminology not readily understood by a reasonably informed lay reader. * Provide the documentin electronic form on the District website. Principle Four: The budget should be timely and easy to manageat the schoollevel. Budgeting is a dynamic processthat includes a development period and an implementation period, each of which may require a series of adjustments. The process of managing the budget is easier for schools and offices if they have access to systems and training. The Chief Financial Officer is responsible for defining the parameters under which schools andoffices can manage their budgets,as set forth by the Board of Education. Principle Five: The budgetprocess should inform stakeholders. Prior to the adoption ofthe final budget, District staff should present the budgetto stakeholders. The Board should also conduct a formal public review of the budget, priorto its adoption. 160 EXHIBIT C - 207 APPENDIX I LAUSD BUDGET AND FINANCE POLICY FUND BALANCE POLICY AND PROCEDURES I. PURPOSE This Fund Balance Policy establishes the policy and proceduresfor reporting and maintaining fund balance in the District’s financial statements. The policy also authorizes anddirects the Chief Financial Officer to prepare financial reports which accurately categorize fund balance as per Governmental Accounting Standards Board (GASB)StatementNo. 54, Fund Balance Reporting and Government Fund TypeDefinitions, effective beginning the 2010-11 fiscal year. II. GENERAL POLICY There are five separate components of fund balance. Each componentidentifies the extentto whichthe District is bound by constraints on the specific purpose for which amounts can be Spent. * Nonspendable fund balance (inherently nonspendable) * Restricted fund balance (externally enforceable limitations on use) * Committed fund balance(self-imposedlimitations on use) * Assigned fund balance(limitation resultingfrom intended use) * Unassigned fund balance (residual resourcesfor unrestricted use) Thefirst two componentslisted aboveare not addressedin this policy due to the nature oftheir restrictions. An example ofnonspendable fundbalanceis inventory. Restricted fund balance is either imposed by law or constrained by grantors, contributors, or laws or regulations of other governments. This policy is focusedonthelast three componentslisted above. TheDistrict considers restricted fund balances to have been spentfirst when an expenditure is incurred for purposes for which both restricted and unrestricted fund balanceis available. Similarly, when an expenditureis incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the District considers committed amounts to be reduced first, followed by assigned amounts, and then unassigned amounts. Il. PROVISIONS Committed Fund Balance The Governing Board,as the District’s highest level of decision-making authority, may commit fund balances for specific purposes pursuantto constraints imposed by formal actions. Commitment of funds can be made through the adoption of the budget as long as the intentto commit the funds is specifically stated. These committed amountscannot beused for any other purpose unless the Governing Board removesor changes the specific use through formal action. Governing Boardaction to commitfund balance needs to occur within the fiscal reporting period, no later than June 30. The amountwhich will be committed can be determined subsequently but prior to the release of the District’s financial statements. 161 EXHIBIT C - 208 APPENDIX I LAUSD BUDGET AND FINANCE POLICY Pursuant to GASB 54,the District commits to maintaining the Deferred Maintenance and Adult Education funds to support programs for which the funds were originally established. Amounts transferred into or retained in the funds will be determined annually per Board adoption ofthe budget and approval of the year end unaudited actuals report. Assigned Fund Balance Amounts thatare neither restricted nor committed maybe constrained by the District’s intent to be used for specific purposes. This policy hereby delegates the authority to assign amounts to the Superintendent, or designee. Unassigned Fund Balance These are residualpositive net resources for the General Fundin excess ofwhat can properly be classified in one of the other four categories. There are some reservesthat do not meet the requirements of the aforementioned components of fund balance. Forfinancial statement reporting purposes, these reserves are includedin the unassigned fund balance. This includes: * Reserve For Economic Uncertainty— The District will maintain an economic uncertainty reserve, consisting of unassigned amounts,ofat least 1% of total General Fund operating expendituresin accordance with Section 15450 ofthe California Code of Regulations. Theprimary purposeofthis reserveis to avoid the need for service level reductions in the event that an economic downturn causes revenues to be substantially lower than budgeted. In the eventthat the District must expendall or part of this reserve, the District will identify and implementa budgetary plan to replenish this reserve the following year. This reserve maybeincreased by legal requirement. 162 EXHIBIT C - 209 APPENDIX J Los Angeles Unified School District DEBT MANAGEMENT POLICY Prepared by: The Office of the Chief Financial Officer September 13, 2011 163 EXHIBIT C - 210 DEBT MANAGEMENTPOLICY Index Background ............ccccccesssseseeseseccsessseesecsseseesesssenscassecsusscsccasavsseusucaravsuesesesscarareassusatavaressssevareatsneevenee 3 Article Purpose amd Goals 0.0.0.0... ccc cscscsssssssssessesessescescsussvsecaversesessacsusssestasesesecsesecassassevens 4 Article U1. Authorization...ceecccccccecesesssssessesssescevsccccececsssrsarsssssacsesssutsessssssecesavecenseeess 5 Section 2.01 Authority and Purposes of the Issuance of Debt ...........0.....cccccccccccccccccsseees 5 Section 2.02 Types of Debt Authorized to be Issued ..0........00.c..cccccccccccseseecceseeseseeessecesees 5 Section 2.03 State Law ooo.ec cecccccccsessesssesesecescscsesesecavavecsssecseasesesseatseaesscesaasecsescaveses 7 Section 2.04 Aumlla] Review 00...ccceecessesesessesesescseescsesesssssstssscseassacsevensesavacaeacsees 8 Article HI. Structural Features, Legal and Credit Comcerns...............0.ccccesccccccsescessssesecseese 8 Section 3.01 Structure of Debt Issues ....0..0......ccccccccccccscesesessessscaseeseveseesecsevasacseseesesevenes 8 Section 3.02 Salle of Securities 2002...eeceececscesesccscocsscssessssssvevevssvevsevacsunesaseceveseeees 9 Section 3.03 OsC 9 Section 3.04 Credit Enhancements and Derivatives..........0.0.00.0..cccccccsccscsesesssessesecessessens 9 Section 3.05 Impact on Operating Budget and District Debt Burden......................... 10 Section 3.06 Debt Limmitation0...ceece cccseesssesesceesesesesssesseeveususseasevsssnsvasacsesacanss 10 Section 3.07 DebtIssued to Finance Operating Costs..0.....000.000....cccccccscssescsescescessceseees 10 Section 3.08 Debt Burden Ratios and Debt Affordability Criteria.....0.......0.0.0.0.00.00.... 10 Section 3.09 Use of Corporations as Lessor for COPs Issues...0...........c.cccccsscesssessesseess 14 Article TV. Related Issues .........-sccsssssssssessssssssssssstesseststeeteeeercecnec 14 Section 4.01 Capital Improvement Program ...............c.cccccccecsscsssssssssssesesesesscscsesecsvees 14 Section 4.02 Reporting ofDebt...eeeccecsesesesessessesescsscscsssseesssesvavevaressscecacssscneey 14 Section 4.03 Fimancial Disclosure...cccecccesecscesccessesesessssesssescacsessenserstarscstavseesecs 15 Section 4.04 Review of Financing Proposals...................ccceccccsssssssesesesestsasscscsesenseee. 15 Section 4.05 Establishing Financing Priorities ......0.0.0......ccccccccsscsesssssssssectsseseseseaveees 15 Section 4.06 Rating Agency and Credit Enhancer Relations..0....0.0..00...c.ccccccsccccscesseses 15 Section 4.07 Investment Community Relations...........0...0..ccccssssscessccssssscssscscscscssssvens 15 Section 4.08 Refunding and Restructuring Policy...........0..00.ccccccccssssssseseescesessscessesees 16 Section 4.09 InvestmentofBorrowed Proceeds................:cccccccscssssccssesesssessestesesesseevecs 16 Section 4.10 Federal Arbitrage Rebate Requirement...............0.00.....ccccccssssssessesesssess 16 Section 4.11 Transaction Records ..0...........cccccccccscsssssssesececsescsesssevecssatsvesencscstacavacseseeseees 17 Section 4.12 Fimancing Team Members ......0.............cccccccccscescsssccecssessseesveseassssscsssesvessees 17 Section 4.13 Special Sitatioms 2.0.0.0... eecccsssessessesescesessecsescsasevssusnessssesacarsreseessees 19 Appendix A LAUSDLong-Term Debt - Compliance Procedures 164 EXHIBIT C - 211 Thepolicies set forth in this Debt ManagementPolicy(the “Policy”) have been developed to provide guidelines for the issuance ofgeneral obligation bonds,certificates of participation (“COPs”) and other forms of indebtedness by the Los Angeles Unified SchoolDistrict (the “District”). While the issuance of debt can be an appropriate methodoffinancing capital projects, careful and consistent monitoring of such debt issuanceis required to preserve the District’s credit strength and budget and financialflexibility. These guidelines will serve the District in determining the appropriate uses for debt financing and debt structures as well as establishing prudent debt managementgoals. Background TheDistrict enjoys someofthe highest credit ratings ofany major urban schooldistrict in the nation. The District’s general obligation bonds are rated Aa2 by Moody’s Investors Service and AA- byStandard & Poor’s Corporation. The District’s COPsratings are Aa3 (Moody’s,for non- abatementleases), Al (Moody’s,for leases subject to abatement) and A+ (Standard & Poor’s, | for both lease types). These high credit ratings reducetheinterest costs paid by the District on the amounts borrowed. Lower interest costs result in lowertax rates paid bythe District’s taxpayers and a reduced burden on the General Fund. These debt managementpolicies are intended to maintain the District’s high credit ratings so that access to borrowed fundsis provided at the lowest possible interest rates. Additionally, these policies are intendedto set forth selectioncriteria for certain financial consultants and attorneys whichwill ensure a fair and open selection process, provide opportunities forall firms (including small business enterprises) to participate in District contracts, andresult in the selection of the best qualified advisors. TheDistrict faces continuing capital infrastructure and cash requirements. In particular, the District is presently engaged in building new schools and modemizing schools with the Facilities Improvement Program to be completed over the next several years. Thecosts ofthese requirements will be met, in large part, through the issuance of various types of debt instruments and other long-term financial obligations. Under“Proposition BB”, “Measure K”, “Measure R”, “Measure Y”and “Measure Q”adoptedby the voters in April 1997, November 2002, March 2004, November 2005 and November 2008,respectively, the District has already raised a combined $20.605 billion in general_obligation bond authorization forits Facilities Improvement Program andother capital and General Fundrelief projects. Consequently, the District has seen an increasein its historical levels of such debt and other obligations and needs to anticipate future issuanceofdebt obligations as well, some ofwhich mayberepaid from the District’s General Fund.'With these additional debt issuances, the effects of decisions regarding type of issue, methodofsale, and payment structure becomeever morecritical to the District’s fiscal health. To help ensure the District’s creditworthiness, an established policy ofmanaging the District’s debt is essential. To this end, the Board of Educationofthe District (the “Board”) recognizes this Policy to be financially prudent andin the District’s best economic interest. In addition, the District’s practices with respect to monitoringits outstanding debt issues for compliance with all Internal RevenueService requirements andother transaction requirements are set forth in Appendix A to this Policy. ' Forpurposesofthis policy, long-term obligations such as lease payments in support of COPswill be considered “debt.” 165 EXHIBIT C - 212 Article I. Purpose and Goals The purposeofthe Policy is to provide a functional tool for debt managementandcapital planning,as well as to enhancethe District’s ability to manageits debt and lease financings in a conservative and prudent manner. In following this Policy,the District shall pursue the following goals: € TheDistrict shall strive to fund capital improvements from referendum-approved bondissues to preserve the availability of its General Fundsfor District operating purposes and other purposesthat cannot be funded by such bondissues. € TheDistrict shall endeavorto attain the best possible credit rating for each debt issue (with or without credit enhancement) in orderto reduce interest costs, within the context of preserving financial flexibility and meeting capital funding requirements. € TheDistrict shall take all practical precautions and proactive measures to avoid any financial decision which will negatively impact currentcredit ratings on existing or future debt issues. € The District shall remain mindful ofdebtlimits in relation to assessed value growth within the schooldistrict and the tax burden needed to meetlong-term capital requirements. € TheDistrict shall consider market conditions and District cash flows when timing the issuanceofdebt. € TheDistrict shall determine the amortization (maturity) schedule which will best fit with the overall debt structure of the Districtat the time the new debtis issued. € TheDistrict shall give consideration to matching the term ofthe issue to the useful lives of assets wheneverpracticable and economic, while considering repair and replacementcosts of those assets to be incurred in future years as an offset to the useful lives, and the related length of time in the payoutstructure. € TheDistrict shall, when planningfor the issuance of new debt, consider the impact of such new debt on overlapping debt andthe financingplans oflocal, state and other governments which overlap with the District. € TheDistrict shall, when issuing debt, assess financial alternatives to include new and innovative financing approaches, including whenever feasible categorical grants, revolving loans or other State/federal aid, so as to minimize the encroachment onthe District’s General Fund. € TheDistrict shall, when planning for the sizing and timing of debt issuance, consider its ability to expend the funds obtained in a timely, efficient and economical manner. € TheDistrict shall ensure that local and emerging businesses will be considered for and utilized in lead roles and for other roles in the senior tier when appropriate. 166 EXHIBIT C - 213 The keyfinancial managementtools and goals thatare intrinsic to the Policy include: A. Fund Balance Policy: The District recognizes the importance of emergencyreserves, including liquidity in the General Fund,that can provide a financial cushion in years of poor revenue receipts. A Reserve Fund Policy has been adopted by the Board. B. Capital Financing Plan: The Office of the Chief Financial Officer will prepare a 5 year Capital Financing Plan in conjunction with the capital budget. The Plan will detail the sources of financing forall facilities in the capital budget, establish fundingpriorities and review the impact ofall borrowingson the District’s long-term debt affordability ratios. The Plan will considerall potential sourcesoffinancing, including non-debt options and ensurethat these financing sourcesare in accordance with the goals ofthis policy. The Office of the Chief Financial Officer will revise the Plan annually. See Articles II and IV herein. C. Annual Debt Report: The Chief Financial Officer will annually prepare for and submit to the Superintendent and the Board a Debt Report which reviewsthe outstanding debt of the District as further described under Section 4.02 herein. Article II. Authorization Section 2.01 Authority and Purposesof the Issuance of Debt The lawsofthe State of California authorize the issuance of debt by the District, and confer upon it the power and authority to make lease payments, contract debt, borrow money, and issue bonds for public improvementprojects. Under these provisions, the District may contract debt to pay for the cost of acquiring, constructing, reconstructing, rehabilitating, replacing, improving, extending, enlarging, and equipping suchprojects: to refund existing debt; or to provide for cash flow needs. Section 2.02 Types of Debt Authorized to be Issued A. Short-Term: The District mayissuefixed-rate and/or variable rate short-term debt which mayinclude tax and revenue anticipation notes (“TRANs”) when suchinstruments allow the District to meet its cash flow requirements. However, the District shall generally manage its cash position in a mannersothat internally generated cash flowis sufficient to meet expenditures. The District may also issue commercial paperin the context of providing funding of shorter term acquisitions, such as equipment, orinterim funding for capital costs that will ultimately be replaced with COPs. The District may also participate in an, annual pooled financing of delinquent property taxesto the extent that the Chief Financial Officer determines such financing produces significant benefit to the District. The District may also issue bond anticipation notes (“BANs”) to provide interim financing for bondprojects that will ultimately be taken out by permanent general obligation bonds. B. Long-Term:Debt issues may be used to finance essential capital facilities, projects and certain equipmentwhere it is appropriate to spread the cost ofthe projects over more than one budget year. In so doing, the District recognizes that future taxpayers whowill 167 EXHIBIT C - 214 benefit from the investmentwill pay a share of its cost. Projects which are not appropriate for spreadingcosts overfuture years will not be financed with long-term debt. Long-term debtwill, under no circumstances, be used to fund District operations. The District may issue long-term debt which may include,butis not limited to, general obligation bonds (“G. O. Bonds”). G.O. Bonds maybe issued pursuant to Proposition 39 which permits bonding authorization if approved by at least 55% of voters versus the two-thirds approval requirementunder other statutes. The District may also enter into long-term leases and/or COPs for public facilities, property, and equipment. In the event that lease revenue bond (“LRB”) financing costs are significantly lower than COPs financing costs, the District may consider using a lease revenue bondstructure for financing public facilities, property, and equipment. The District may issue COPs or LRBsin variable rate modesolong as the requirementsin Section 3.08. (A) hereof are met. Equipment Financing: Lease obligations are a routine and appropriate meansoffinancing capital equipment. However,lease obligations also havethe greatest impact on budget flexibility. Therefore, efforts will be made to fund capital equipment with pay-as-you-go financing wherefeasible, and only the highest priority equipment purchaseswill be funded with lease obligations. With the exception of leases undertaken through the District’s standard procurementprocess,all equipment with a useful life of less than six years shall be funded on a pay-as-you-go basis unless the following conditions are met: i. In connection with the proposed District budget, the Superintendent makes the finding that there is an “economic necessity” based ona significant economic downturn, earthquakeor other natural disaster and there are no other viable sources of funds to fund the equipment purchase. li. The Board concurs with the Superintendent’s finding in the adoption of the budget. iil. The various debtceilings in Section 3.08 of this Policy are not exceeded. Lease Financing of Real Property: Lease financingfor facilities is appropriate for facilities for which there is insufficient time to obtain voter approval orin instances where obtaining voter approvalis not feasible. Such financings will be structured in accordance with Section 3.01 of the Policy. If and when voter approved debt proceeds becomeavailable subsequently, the District will use such proceeds to take out the financing where appropriate. Identified Repayment Source: The District will, when feasible, issue debt with a defined revenue source in order to preserve the use of General Fund supported debtfor projects with no stream of user-fee revenues. Examples ofrevenue sources include voter- approved taxes that repay general obligation or special tax bonds. Use of General Obligation Bonds: Voter-approved general obligation bondstypically provide the lowest cost ofborrowing and do not impact the District’s General Fund. 168 EXHIBIT C - 215 Generalobligation bond debt to the extent authorized for the District requires either two- thirds approval ofthe voters (in the case oftraditional general obligation bonds) or 55% approvalofthe voters (in the case of general obligation bondsissued pursuant to Proposition 39). In recognition ofthe difficulty in achieving the required two-thirds voter approval or 55% voter approval, as the case maybe,to issue general obligation bonds, such bondswill be generally limited to facilities and projectsthat provide wide public benefit and for which broad public support has been generated. G. Use of Revenue Bonds: Revenue bondssupported solely from fees are not included when bond rating agencies calculate debt ratios. Repaymentof such bonds would rely on dedicated, pledged funds such as developerfees and/or redevelopment agencypass- throughs. Accordingly,in order to preserve General Fund debt capacity and budget flexibility, revenue bonds will be preferred to General Fund supported debt when a distinct andidentifiable revenue stream can be identified to support the issuance of bonds. H. Use of Asset Transfer COPs: The District will restrict the use of an “asset transfer” COP financing to finance emergencycapital needs for which there are no other viable financing options. Additionally, asset transfer COPs may beused if significant savings in financing costs can be generated comparedto otherfinancing alternatives. I. Pay-As-You-Go Financing: Exceptin extenuating circumstances, the District will fund routine maintenance projects in each year’s capital program with pay-as-you-go financing. Extenuating circumstances may include unusuallylarge and non-recuming budgeted expenditures, or when depleted reserves and weak revenues would require the delayordeletion of necessary capital projects. J. Use of Special Financing Structures: TheDistrict may use special financing structures permitted by the federal governmentif they are determinedto result in significantly lower financing costs versustraditional tax-exempt bonds and/or COPs. Pursuantto State law,the District can issueeither fixed-rate, variablerate or capital appreciation debt, depending on the applicable law. Section 2.03 State Law Section 18 of Article XVI of the State Constitution contains the basic “debt limitation” formula applicable to the District. Sections 1(b)(2) and 1(b)(3) of Article XIII A ofthe State Constitution allow the District to issue traditional general obligation bonds andProposition 39 bonds, respectively. The statutory authority for issuing general obligation bonds is contained in Section 15000 et seq. of the Education Code. Additional provisions applicable only to Proposition 39 general obligation bonds are contained in Section 15264 et seg. of the Education Code. Analternative procedure for issuing general obligation bonds is also available in Section 53506 et seq, of the Government Code. 169 EXHIBIT C - 216 Thestatutory authority for issuing TRANSsis contained in Section 53850et seq. of the Government Code. Authority for lease financings is found in Section 17455 et seq. of the Education Codeandadditional authority is contained in Sections 17400 et seq., 17430 et seq. and 17450 et seq. of the Education Code. The District mayalso issue Mello-Roos bonds pursuantto Section 53311 et seg. of the Government Code. Section 2.04 Annual Review The Policy shall be reviewed and updated at least annually and presented to the Board for approval as necessary. The Chief Financial Officeris the designated administrator of the Policy and has overall responsibility, with the Board’s approval, for decisions related to the structuring ofall District debt issues. The Chief Financial Officer maydelegate the day-to-day responsibility for managing the District’s debt and lease financings. The Board is the obligated issuer of all District debt and awardsall purchase contracts for bonds, COPs, TRANs and any other debt issuances. Article Il. | Structural Features, Legal and Credit Concerns Section 3.01 Structure of Debt Issues A. Maturity of Debt: The duration ofa debtissue shall be consistent, to the extent possible, with the economicor useful life of the improvementor asset that the issue is financing. Thefinal maturity of the debt shall be equal to orless than the usefullife of the assets being financed, and the averagelife of the financing shall not exceed 120% ofthe averagelife ofthe assets being financed. In addition, the District shall consider the overall impact of the current and future debt burden ofthe financing when determining the duration ofthe debtissue. L. General Obligation Bonds: Thefinal maturity of General Obligation bondswill be limited to the shorter of the average useful life of the asset financed or 25 years whensuch bondsare issued pursuantto the Education Code. General Obligation bonds maybestructured with a term to maturity no longerthan 40 years if issued pursuantto the Government Code; however, the selected term to maturity would have to be appropriate relative to the average usefullives ofthe assets financed. ‘ General Obligation bondissues will generally be sized to the amount reasonably expected to be required for two year’s expenditure requirements. ii. Lease-Purchase Obligations: Thefinal maturity of equipment obligations will be limited to the average usefullife of the equipmentto be financed. The final maturity ofreal property obligations will be determined,in part, by the size ofthe financing.. iii, Mello-Roos Obligations and Revenue Bonds: Theseobligations, although repaid through additional taxes levied on a discrete group of taxpayers or from pledged developer fees and/or redevelopmentfunds, constitute overlapping indebtedness of the District and have an impacton the overall level of debt affordability. The District will develop separate guidelines for the issuance of such obligations as the needarises. 170 EXHIBIT C - 217 B. DebtService Structure: The District shall design the financing schedule and repayment of debtso as to take best advantage of marketconditions, provide flexibility, and, as practical, to recapture or maximizeits debt capacity for future use. Annual debt service payments will generally be amortized on a level basis per componentfinanced; however, slower principal amortization may occur more quickly or slowly where permissible to meet debt repayment and flexibility goals. C. Capitalized Interest: Unless required for structuring purposes,the District will avoid the use of capitalized interest in order to avoid unnecessarily increasing the bondsize andinterest expense. Certain types of financings such as COPs may requirethatinterest on the debt be paid from capitalized interest until the District has use and possessionofthe underlying project. However, the District may pledgeassets using an asset-transfer structureas collateral for the issue in order to eliminate the need for capitalizedinterest. D. Call Provisions: The Chief Financial Officer and Controller, based upon analysis from the financial advisors of the economics ofcallable versus non-callable features, shall set forth call provisions for each issue. Section 3.02 Sale of Securities There are three methodsofsale: competitive, negotiated and private placement. Thepreferred methodofsale shall be the competitive methodas it is likely to result in the lowest interest cost to the District. All three methodsofsale shall be consideredforall issuance of debt, however, as each methodhasthe potential to achieve the lowestfinancing cost given the right conditions. Any awardthrough negotiation shall be subject to approval by the District, generally by the ChiefFinancial Officer or other person designated by the Chief Financial Officer, to ensure that interest costs are in accordance with comparable marketinterest rates. When a competitive bidding processis deemed the most advantageous methodofsale for the District, award will be based upon, amongotherfactors,the lowestoffered True Interest Cost (“TIC”). While not used as frequently as negotiated or competitive sale methods, a private placement sale would be appropriate whenthe financing can or mustbe structured fora single or limited number of purchasers or where the termsofthe private placementare more beneficial to the District than either a negotiated or competitive sale. Section 3.03 Markets The District shall consider products and conditions in the capital markets in meeting the District’s financing needs. Whenpractical in its financing program,the District shall consider local and regional markets as well as retail andinstitutional investors. Section 3.04 Credit Enhancements and Derivatives The District may enter into credit enhancement agreements such as municipal bond insurance, surety bonds,letters of credit and lines of credit with commercial banks, municipal bond insurance companies,or other financial entities when their useis Judged to lower borrowing costs, eliminate restrictive covenants, or have a net economic benefit to the financing. Thecredit rating of any counterparty must beat least A+ at the timeofthe transaction. The District shall use a competitive process to select providers of such products to the extent applicable. In order 171 EXHIBIT C - 218 to assure that the District purchases bond insurancecost-effectively, the Chief Financial Officer will review a bond insurance break-even analysis by maturity before selecting which maturities to insure. The District mayalso undertake hedgingstrategies in connection with its debt issues. The Chief Financial Officer will develop an appropriate policy regarding interestrate swaps,interest rate caps andcollars, rate locks and other derivatives for approval by the Board. Such policy,if approved,will beintegrated into this Policy. Section 3.05 Impact on Operating Budget and District Debt Burden Whenconsidering any debt issuance, the potential impact of debt service and additional operating costs induced by new projects on the operating budgetofthe District, both short and long-term, will be evaluated. Theratio of annual debt service to General Fund expendituresis one methodasis the additional debt burden of overlapping agencies and taxpayers. Thecost of debt issued for majorcapital repairs or replacements should be judged against the potential cost of delaying such repairs. Section 3.06 Debt Limitation Section 15106 of the Education Code limits the District’s total outstanding bonded debt (i.e., the principal portion only) to 2.5% of the assessed valuation ofthe taxable property ofthe District. Thus, Section 15106 of the Education Codelimits the issuance ofnew debt whenthe District has total bonded indebtednessin excess of 2.5% ofthe assessed valuation in the District. TRANs and lease paymentobligations in support of COPs generally do not count against this limit except as provided in Section 17422 of the Education Code. Section 3.07 Debt Issued to Finance Operating Costs The District cannotfinance general operating costs from debt having maturities greater than thirteen months. However, the District may deemit necessary to finance cash flow requirements under certain conditions. Such cash flow borrowing mustbe payable from taxes, income, revenue,cash receipts and other moneys attributable to the fiscal year in which the debtis issued. General operatingcosts include, but may notbelimitedto, those items normally funded in the District’s annual operating budgetand having a useful life of less than one year. Section 3.08 Debt Burden Ratios and Debt Affordability Criteria A. Debt Burden Ratios: As noted in Section 3.06, the District may issue “bonds”in an amountno greater than 2.5% of taxable property within the school district. The 2.5% issuance limit is known as the District’s bonding capacity, with “bonds” referring to G.O. Bonds. Even though COPs donottechnically constitute “debt” under California's Constitution and, thus, are excluded from the 2.5% bonding limit, the rating agencies and the investor community evaluate the District’s debt position based on all ofits outstanding long-term obligations whetheror not such obligations are repaid from taxpayer-approvedtax levies, the General Fund or developerfee sources. Therefore, the debt burden ratios described below will include both G.O. Bonds and COPsobligations as “debt” in the respective calculations. This conforms with market 172 EXHIBIT C - 219 convention for the general use of the term “debt” and “debt service” as applied to a broadvariety of instruments in the municipal market, regardless oftheir precise legal status or source of repayment. “Debt” excludes short-term obligations such as tax and revenueanticipation notes. The following debt burden ratios should be considered in developing debt issuanceplans: € B. Ratio of Outstanding Debt to Assessed Value. Theratio “Direct Debt”shall be calculated using both G.O. Bonds and COPs. In addition,the ratio “Overall Direct Debt”or “Overall Debt”shall be calculated by aggregating all debt issuesattributable to agencies located in the District as presented in the California MunicipalStatistics Overlapping Debt Statement. It is important to monitor the levels and growth of Direct Debt and Overall Debtas they portray the debt burden bomeby the District’s taxpayers and serve as proxies for taxpayer capacity to take on additional debtin the future. Ratio of Outstanding Debt Per Capita. The formulafor this computationis Outstanding Debt divided by the population residing within the District, based upon the most recentestimates as determined by the United States Bureau of the Census. Ratios shall be computed for both “Direct Debt Per Capita” and “Overall Debt Per Capita”. Ratio of Annual Lease Debt Service to General Funds Expenditures. The formula forthis computation is annual lease debt service expenditures divided by General Funds(i.e., General and DebtService Funds) expenditures (excluding interfund transfers) as reported in the most recent CAFR. Proportion of Fixed-Rate and Variable-Rate COPs Issues. The District can benefit from somevariable rate exposurein its portfolio of COPs issues. However, the District shall keep its variable rate exposure, to the extent not hedged or swappedto fixed rate, at or below 20% ofthe total principalofoutstanding COPsor $100 million, whicheveris less. “Hedges” include unrestricted cash resources as well as interest rate products such as capsandcollars. Under nocircumstanceswill the District issue variable rate debt for arbitrage purposes. If variable rate debt is used, the Chief Financial Officer will periodically, butat least annually, determine whetherit is appropriate to convert the debt to bear fixed interest rates. Debt Affordability: The determination ofhow much indebtednessthe District should incur will be based on a Capital Financing Plan (the “Plan”)thatis currently being developed by the Office ofthe Chief Financial Officer, which analyzes the long-term infrastructure needs of the District, and the impactofplanned debt issuances on the long-term affordability ofall outstanding debt. The Plan will be based on the District’s current five-year capital plan andwill includeall District financingsto be repaid from the General Fund, special funds or ad valorem property taxes. The affordability of the incurrence of debt will be determinedby calculating variousdebt ratios (itemized below) which wouldresult after issuance of the debt and analyzing the trends overtime. C. Targets and Ceilings for Debt Affordability: Oneofthe factors contributingto the District’s high credit ratings is its moderate General Fund-supported debt level relative to other large issuers and as compared to the resources available to repay the debt. The issuance of debt 173 EXHIBIT C - 220 to be repaid from the General Fund and otherinternal District resources(typically, the District’s certificates of participation) must be carefully monitored to maintain a balance between debt and said resources. The District’s credit environmentis also affected by the District’s issuanceofits general obligation bonds paid from voter approved tax levies as well as the debt issuance activities of other agencies (for example, the City ofLos Angeles, the County of Los Angeles andthe Los Angeles Community College District) whose jurisdictions overlap those ofthe District. It is important for the District to examine debt burdenratios for such debt as well, even though such debt is not paid from the District’s General Fund or other internal resources. Further, the tax receipts used to repay the Districts general obligation bonds are levied and collected by the County of Los Angeles and are not controlled by the District. Table 1 providesa listing of the debt burden factors that will be monitored by the Chief Financial Officer in the case of debt to be repaid from the General FundorotherDistrict resources. The measured debt factors will be comparedto targeted and maximum levels for those factors. The targets andceilings are intended to guide policy. The targets and ceilings do not mean that debt issuance is automatically approved if there is room undera particular target or ceiling. On the contrary, each and every proposed debt issuance mustbe individually presented to and approved by the Board of Education. Table 2 indicates the benchmark debtburdenratios to be monitored by the Chief Financial Officer that recognize the combined direct debt and overall debt of the District, as applicable. The Office of the Chief Financial Officer shall annually prepare or cause to be prepared a Debt Report providing details of the calculationsofdebt ratios and projectionsofthe impactoffuture debt issuanceonthe District’s direct debt. The Office of the Chief Financial Officer shall also develop appropriate appendices to the Debt Report containing relevant information on anyrating agency and/or Government Finance Officer’s Association debt policy guidelines with respect to debt burdenratios. i. Debt Ratios: The followingtable sets forth the debt ratios to be monitored under the Policy and their targeted levels and Policyceilings,ifapplicable. 174 EXHIBIT C - 221 Table 1 Debt Factor Target Ceiling COP Debt Service Limit (gross) 2.0% of General Funds 2.5% of General Funds Expenditures Expenditures COP Gross Annual Debt Service $105 Million Cap Table 2 Debt Burden Ratio Benchmark Direct Debt to Assessed Value Moody’s Median for Aa Rated School Districts With Student Population Above 200,000 Standard & Poor’s Mean for AA Rated School Districts With Student Population Above 150,000 Overall Debt to Assessed Value Moody’s Median for Aa Rated SchoolDistricts With Student Population Above 200,000 Standard & Poor’s Mean for AA Rated School Districts With Student Population Above 150,000 Direct Debt Per Capita Standard & Poor’s Median for AA Rated School Districts With Student Population Above 150,000 Standard & Poor’s Mean for AA Rated School Districts With Student Population Above 150,000 Overall Debt Per Capita Standard & Poor’s Median for AA Rated School Districts With Student Population Above 150,000 Standard & Poor’s Mean for AA Rated SchoolDistricts With Student Population Above 150,000 “Direct Debt”includesall debt that is repaid from the General Fund or from any tax revenues deposited into special funds not supporting revenue bonds. “Overall Debt” includes any debtthat is paid from general tax revenues and special assessments byresidents in the District. This includes debt issued by other agencies whose taxing boundaries overlap the District, such as the City of Los Angeles, the County ofLos Angeles and the Metropolitan Water District, but excludes revenue bonds with dedicated repaymentsources. D Monitor Impact on District Taxpayer ofVoter-Approved Taxes: In addition to the analysis of the District’s debt affordability, the Plan will review the impactofdebt issuance on District taxpayers. This analysis will incorporate the District’s general obligation bond tax levies 175 EXHIBIT C - 222 Comprehensive Annual Financial Report (CAFR). In addition, the District will monitor the performanceofthe actualtax levy rate per $100,000 of assessed value for each general obligation bond authorization versus whatthe tax levy rate was expectedto beat the timeofthe original bondelection and includesaid performance in the Debt Report. The Measure K, Measure R, Measure Y and Measure Q Bonds wereeachauthorized with a tax levy limitation of $60 per $100,000 of assessed value to repay bonds issued under each authorization (Measure). Section 3.09 Use of Corporations as Lessor for COPs Issues TheDistrict has established two special purpose corporationsto assist in COPs financings as lessor: the LAUSD Financing Corporation and the LAUSD Administration Building Financing Corporation. The District shall use these corporationsrather than private corporations as lessor wheneverfeasible. The District shall maintain proper records relating to the corporations and prepare audits as required. Article IV. Related Issues Section 4.01 Capital Improvement Program Planning and managementofthe District’s Capital Improvement Program rests primarily with the Facilities Services Division under the Superintendent’s direction, subject to review by the Bond Oversight Committee and approval by the Board of Education. The Facilities Master Plan and Strategic Execution Plans providean overall description of the District’s currentFacilities Improvement Program. TheFacilities Services Division will, as appropriate, supplement and revise these plans in keeping with the District’s current needs for the acquisition, development and/or improvement ofDistrict’s real estate and facilities. The plans must include a summary of total cost of each project, schedules for the projects, the expected quarterly cash requirements, and annual appropriations, in order for the projects to be completed. The Office of the Chief Financial Officer shall prepare an annualcapital financing plan and a capital program budgetas part of the annual budgetfor the District. The capital program budget shall identify all appropriations for the capital program, sources of funds, uses offunds, future funding requirements forproject completion and an estimate ofthe capital program’s impact on subsequent operating budgets. The District Board, upon advice from the ChiefFinancial Officer, may consider incurring subsequent debt to fund multiple phasesofthe Facilities Improvement Program. Section 4.02 Reporting of Debt The Comprehensive Annual Financial Report will serve as the repository for statements of indebtedness. The annual debt statementcertifies the amountof(i) new debt issued, (ii) debt outstanding, (iii) debt authorized butnotissued,(iv) assessed valuation and (v) outstanding debt expressed as a percentage of assessed valuation, each as of the endofthe fiscal year to which the CAFR relates. The CAFRwill be posted on the District’s website, on the District’s dissemination agent’s website and on the Electronic Municipal Market Access (EMMA)website. 176 EXHIBIT C - 223 Section 4.03 Financial Disclosure The District shall prepare or cause to be prepared appropriate disclosures as required by Securities and Exchange Commission Rule 15c2-12,the federal government, the State of California, rating agencies, bond insurers, underwriters, bond counsel, investors, taxpayers, and other persons orentities entitled to disclosure to ensure compliance with applicable laws and regulations and agreements to provide ongoing disclosure. The District shall make available its annual CAFRs, budgets, and Official Statements on the official District website, the District’s dissemination agent’s website, and on the Electronic Municipal Market Access (EMMA)website so that interested persons have a convenient way to locate major financial reports and documents pertainingto the District’s finances and debt. Section 4.04 Review of Financing Proposals All capital financing proposals involving a pledge of the District’s credit through the sale of securities, execution ofloans,or lease agreements or otherwisedirectly or indirectly the lending or pledgingofthe District’s creditinitially shall be referred to the Chief Financial Officer who shall determinethe financial feasibility of such proposal and make recommendations accordingly to the Board. Section 4.05 Establishing Financing Priorities The Chief Financial Officer shall administer and coordinate the Policy and the District’s debt issuance program and activities, including timing of issuance, method ofsale, structuring the issue, and marketing strategies. The Chief Financial Officer shall, as appropriate, report to the Superintendent and the Board regardingthestatus of the current and future year programs and make specific recommendations. Section 4.06 Rating Agency and Credit Enhancer Relations The District shall endeavor to maintain effective relations with the rating agencies andcredit enhancers. The Chief Financial Officer along with the District’s financial advisors shall meet with, make presentations to, or otherwise communicate with the rating agencies, and credit enhancers on a consistent and as appropriate basis in order to keep the agencies informed concerning the District’s capital plans, debt issuance program, and other appropriate financial information. Section 4.07 Investment Community Relations The District shall endeavor to maintain a positive relationship with the investment community, The Chief Financial Officer shall, as necessary, prepare reports and other forms of communication regarding the District’s indebtedness, as well as its future financing plans. This includes information presented to the media and other public sources of information. To the extent applicable, such communicationsshall be posted on the District’s website. 177 EXHIBIT C - 224 Section 4.08 Refunding and Restructuring Policy Whenever deemedto be in the bestinterest of the District, the District shall consider refunding or restructuring outstanding debt whenfinancially advantageousorbeneficial for debt repayment and structuringflexibility. The ChiefFinancial Officer shall review a net present value analysis of any proposed refunding in order to make a determination regarding the cost-effectiveness of the proposed refunding. Thetarget net present value savings as a percentage ofthe refunded aggregate principal amount shall be no less than 3% per maturity unless,at the discretion of the Chief Financial Officer, a lower percentage is more applicable, for situations including, but not limited to, maturities with only a few years until maturity or COPs being defeased or redeemed from proceeds of G.O. Bonds orotherstructuring considerations. The Chief Financial Officer may waive the 3% per maturity savings threshold when evaluatinga fixed rate refunding of variablerate debt, as the refinancing ofcertain variable rate structures may providesubstantial marginal benefits to the District that include, but are not limited to, elimination ofinterest rate risk, renewalrisk, and counterpartyrisk. The Chief Financial Officer shall be empowered to restructure escrow fundsfor the District’s refunded Bonds and COPsfrom timeto time when savings can be achieved. The Chief Financial Officer shall review a savings analysis of any proposed restructuringin order to make a determination regardingits cost-effectiveness. The target net savings shall be no less than $1.0 million unless, at the discretion of the Chief Financial Officer, a lower amount is more appropriate given the nature ofthe particular escrow fund. Any savings from such restructuring shall be applied in accordancewith legal and tax considerations and legal analysis at the time such savingsare available. Section 4.09 Investment of Borrowed Proceeds The District acknowledgesits on-going fiduciary responsibilities to actively manage the proceeds of debt issued for public purposes in a mannerthat is consistent with California law governing the investment ofpublic funds and with the permitted securities covenants ofrelated bond documents executed by the District. Where applicable, the District’s official investment policy shall govern specific methods of investmentofbond related proceeds. The District shall competitively bid the purchase ofinvestment securities, investment contracts,float contracts, forward purchase agreements and any other investments pertainingtoits tax-exemptdebt issues. A registered investment advisor or the County of Los Angeles Treasurer-Tax Collectorshall solicit bids for investment products. The District’s underwriters, but notits financial advisors, maybid on investment products. Preservation ofprincipal will be the primary goal of any investmentstrategy followed bythe availability of funds, followed by return on investment. The managementofpublic funds shall enable the District to respond to changes in markets or changes in paymentor construction schedulesso asto (i) ensure liquidity and(ii) minimizerisk. Section 4.10 Federal Arbitrage Rebate Requirement The District shall maintain or cause to be maintained an appropriate system of accounting to calculate bond investmentarbitrage earnings in accordance with the Tax Reform Act of 1986, as amended or supplemented and applicable United States Treasury regulationsrelated thereto. 478 EXHIBIT C - 225 Section 4.11 Transaction Records The Chief Financial Officer or designee shall maintain complete records of decisions madein connection with eachfinancing, including the selection of membersofthe financing team, the structuring ofthe financing, selection of credit enhancement products and providers, and selection of investmentproducts. Each transactionfile shall includethe official transcript for the financing, the final number runsanda post-pricing summary ofthe debt issue. The Chief Financial Officer shall timely provide a summary of each financing to the Board. Section 4.12 Financing Team Members A. Retention of Consultants L General: All financial advisors, bond counsel, disclosure counsel and underwriters will be selected from a poolto be created through a Request for Proposals (RFP) or Request for Qualifications (RFQ) process, whichever is most appropriate given the circumstances. In isolated instances, such contracts may be awarded on a sole sourcebasisif it is clear that an RFP/RFQ process would notbefeasible orin the District’s interests. The District’s contracting policies will apply to all contracts with finance professionals. Generally, contracts for financial advisor, underwriter, and bond counselwill be for five years with two one-year renewal options. Members ofthe financing team for each specific transaction will be identified and presented to the Boardas part of the financing transaction Board report or as a separate informative. If however, an urgent financing opportunity or needarises such that there is not enough time to obtain Board approvalofthefinancing team. through the regular process, the Superintendent may authorize the appointmentof the team. Underwriters: The minimum qualifications for underwriters to be considered for work on District transactions are: the firm must have a permanentoffice in the State of California; the firm must have completedatleast ten (10) financingsin the prior two years; the firm must maintain netcapital of at least $100,000atall times; the lead investment banker must haveat least three years of experience working on large, complex transactions and must be authorized to sign a bond purchase contract; the firm must hold and maintain atall times all appropriate and required Federal and State licenses and registrations; and the firm mustatall timeshaveat least one full-time professional employee with a NASDSeries 53 license (Municipal Securities Principal). IF Based upon evaluation of submitted statements of qualifications, underwriting firmswill be assigned to oneofthree specific tiers: the senior managertier (with thosefirmseligible to serve as senior or co-senior manager); the co-managertier (with those firmseligible to serve as co-manager); and the emerging firmstier (with those firmseligible to serve as co-manager). In the event the par amountof a transaction is $200 million orless, firms in the co-managertier may competeto 179 EXHIBIT C - 226 iii, iv. serve as senior manager, in keeping with the District’s procurementpolicythat competition is the cornerstoneofthe procurementprocess. In the event the District issues bonds through a negotiated sale, the selection of underwriters will be based upon a mini-RFP process and will generally be for a single transaction. The mini-RFP will specify the scoring system for selection of the underwriters and will consider the following factors in decreasing order of priority: 1. Past performance, especially on transactions for the District. 2. Analysis of the financing need and proposed financing structure, recommended marketing plan and determination that the firm has sufficient net capital. 3. Proposed underwriting fees, including takedown, direct expenses, and the cost of underwriter’s counsel. 4. Demonstrated commitmentto, track record in, and investing in the communities served by the LAUSD. Underwriters may beselected for multiple transactions if multiple issuances are planned for the sameproject. In addition, the District will include at least one firm with an office within the District’s boundaries on each standard, fixedrate financing transaction. General Financial Advisor: The District will retain a general financial advisory team to provide general advice on the District’s debt management program, financial condition, budget options and bondrating agencyrelations. Additionally, the general financial advisorwill structure the District’s General Obligation bond issuances and may be used on an as-neededbasis to structure bondissuances thatdo notfall into the other categories of District debt obligations. Anyfirm serving as general financial advisor mustbe registered at all times with both the Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB)and mustalso hold any certifications and/orlicenses required by the SEC and/or MSRB. As-Needed Bond Counsel: The District will select a bond counsel team to be used on an as-needed basis to structure bond issuances which do notfall into the other categories of District debt obligations. Additionally, one or moreofthe firmswill be selected to provide general legal advice on debt financing. Other District Bond Programs: Financial advisory and bond counsel teamswill be selected for the District’s general lease financings, TRANs, Mello-Roos, special revenue bonds and anyother bond program which maybe created. Depending on particular expertise and consultant availability, some firms may be used on more than one program. However,efforts will be made to establish different teams to provide a numberoffirms the opportunity to participate in District contracts. EXHIBIT C - 227 B. Use ofIndependentFinancial Advisors i. Use of Independent Financial Advisors: Any firm serving as financial advisor on a District transaction mustbe registered as a municipal advisoron financingsat all times with both the Securities and Exchange Commission (SEC) andthe Municipal Securities Rulemaking Board (MSRB)and must also hold any certifications and/orlicenses required by the SEC and/or MSRB.In recognition of the fact that in a financing the goals of the underwriters andthe issuer are inherently in conflict, the District will strive to hire financial advisors who do not participate in the underwriting or trading of bondsor other securities. Under certain circumstances, however, it may be in the District’s interests to hire an investment banking firm to act as financial advisor on specific bondissues, although said firm must obey any SEC and/or MSRB nules and restrictions regarding when a broker-dealer or investment bank can serveasfinancial advisor and then “flip” to the role of underwriter. li. Use of Investment Advisors for Investment Advice: Although, in most instances, the Office of the Chief Financial Officer will make all investment decisions relative to temporary investments pending the expenditure of bondproceeds, an investment advisor may provide investment advice on refundings and other transactions with specialized investment needs. Any firm servingas financial advisor on a District transaction mustberegisteredat all times as an investment advisor with both the Securities and Exchange Commission (SEC)andthe Municipal Securities Rulemaking Board (MSRB), as applicable, and mustalso hold anycertifications and/or licenses required by the SEC and/or MSRB. C. Disclosure by Financing Team Members; Ethics All financing team memberswill be required to provide full and complete disclosure, underpenalty ofperjury, relative to any and all agreements with other financing team membersandoutside parties. The extent of the disclosure may vary depending on the nature ofthe transaction. However, in general terms, no agreements will be permitted which would compromise a firm’s ability to provide independent advice which is solely in the best interests of the District, or which could reasonably be perceived as a conflict ofinterest. All financing team members shall abide by the Board’s codeofethics. Section 4.13 Special Situations Changes in the capital markets, District programs and other unforeseen circumstances may from time to time producesituations that are not covered bythe Policy. These situations may require modifications or exceptions to achieve policy goals. Managementflexibility is appropriate and necessary in suchsituations, provided specific authorization is received from the Board. 181 EXHIBIT C - 228 APPENDIX A LOS ANGELES UNIFIED SCHOOL DISTRICT LAUSD LONG-TERM DEBT—-COMPLIANCE PROCEDURES Statement ofPurpose This Tax Compliance Policy (the “Policy”) sets forth specific policies of the Los Angeles Unified School District (the “District”) designed to monitor tax complianceby the District with respect to Tax-Advantaged Obligations,” including butnot limited to post-issuance tax compliance with applicable provisions of the Internal Revenue Codeof 1986, as amended (the “Code”), and regulations promulgated thereunder(the “Treasury Regulations”). This Policy is intended to document and supplementexisting practices and describe various procedures and systems implemented andto be implemented to demonstrate compliance with the requirements that must besatisfied at the time of, and subsequentto, the issuance ofTax- Advantaged Obligations. Compliance with applicable provisions of the Code and the Treasury Regulationsis an on-going process and an integral component ofthe District’s debt management program. Accordingly, implementation ofthis Policy will require ongoing surveillance through, and sometimesbeyond,the final maturity ofthe related issue ofTax-Advantaged Obligations and, likely, consultation with legal counsel beyondtheinitial engagementforthe issuance of particular obligations. This Policy is meantto set forth best practices and procedures and is intended to be revised over time. ThePolicy is meantto bethe District’s initiative to document compliancewith the provisions of the Federal tax law addressing Tax-Advantaged Bonds. Given thesize, scope and complexity of the District’s financings and school construction and maintenance program, strict compliance with all elements ofthis Policy will require ongoing review and refinementofthe Policy. Any failure to conform to any componentofthis Policy shall in no wayinferthat the District is not in compliance with the provisions of the Code applicable to Tax-Advantaged Obligations of the District. Policies and Procedures Generally The District’s General Counsel(the “General Counsel”) shall identify a staffmember to be responsible for monitoring tax compliance with regard to debtofferings (the “District Tax Compliance Designee”). The General Counselshall also be responsible for ensuring an adequate succession plan for transferring tax compliance responsibility when changesin staff occur. 2 The District issues (i) bonds, certificates of participation and other obligations, the interest on whichis intended to be excluded from gross income for federal income tax purposes (“Tax-Exempt Obligations”) and (ii) bonds and other obligations, which provide certain credits to bondholders in lieu of or in addition to interest payments or interest subsidy payments to issuers (e.g., Build America Bonds and Qualified School Construction Bonds), that finance property that was otherwise eligible to be financed with proceeds of Tax Exempt Obligations (“Tax Credit/Subsidy Obligations,” collectively with Tax-Exempt Obligations, “Tax-Advantaged Obligations”). 182 EXHIBIT C - 229 The District Tax Compliance Designee should coordinate procedures for record retention and review of such records as morefully described herein and needsto gain familiarity with Internal RevenueService(“IRS”) Forms 8038-G, 8038-B, 8038-CP, 14002, and relevant provisions of the Code and the Treasury Regulations,including butnotlimited to Treasury Regulations Sections 1.141-2, 1.141-3, 1.141-12, and 1.148-1 through 1.150-2. The District Tax Compliance Designee needsto review tax compliance procedures and systems on a periodicbasis, but not less than annually, and consult with the District’s General Counsel, Chief Financial Officer, Chief Facilities Officer and bond counsel as appropriate and as needed. Electronic media will be the preferred method for storage ofall records maintained by the District in connection with tax compliance. Document maintenance requirements may change overtime, and the District Tax Compliance Designee shall consult with bond counsel to develop and maintain a comprehensive recordsretention policy so asto facilitate continuing compliance with the provisionsofthe Code applicable to the District’s Tax-Advantaged Obligations. The District will maintain the following categories of records with respect to each issueofits outstanding Tax-Advantaged Obligations: (i) Documentationrelating to the authorization,sale and issuance of Tax-Advantaged Obligations; (i) Documentation setting forth the dates, amounts and purposesof each expenditure ofTax- Advantaged Obligations were expended, as morefully described under “Expenditure of Proceeds” below; (ii) Documentation ofarrangements governing the use of Property Financed with Proceeds of each issue of Tax-Advantaged Obligations, as more fully described under “Private Use and Ownership” below; and (iv) Documentationrelating to the investmentofproceeds and replacement proceeds allocable to each issue of Tax-Advantaged Obligations. The foregoing records shall be maintained by the District under the supervision of the District Tax Compliance Designee for a period ofnotless than six years after the final payment of principal on such Tax-Advantaged Obligations, provided that with respect to property financed with proceeds ofTax-Advantaged Obligations, such records shall be maintained for a period of notless than six years after the final paymentof principal on such Tax-Advantaged Obligations or any Tax-Advantaged Obligations issued to refund, directly or indirectly, the issue of Tax- Advantaged Obligationsthat financed such property. Issuance of Obligations With respect to each new issue of Tax-Advantaged Obligations, the District Tax Compliance Designee is to (a) obtain and store a closing binder and/or CD orotherelectronic copy of the relevant and customary transaction documents, (b) confirm that bond counsel or tax counsel has filed with IRS Form 8038-G or Form 8038-B for such issue, and (c) coordinate receipt and retention of relevant books and records with respectto the investment and expenditure of the 183 EXHIBIT C - 230 proceeds of such Tax-Advantaged Obligations. Documentation to be maintained shall include, but not be limitedto: (i) Resolutionsofthe District and the County authorizing the issuance of the Bonds; (ii) Bond Purchase Agreement; (iii) Preliminary Official Statement, Official Statement and any other documentation circulated to potential investors; (iv) Certifications with respect to delivery ofTax-Advantaged Bondsandthe receipt of the purchaseprice therefor; (v) Tax Certificate or Tax Compliance Agreement (including exhibits, such as an issue price certificate of the underwriter or, in the eventofa private placement, the purchaser); (vi) Schedules prepared by the Financial Advisor or Underwritersetting forth the sources and uses of funds, projected expenditure of proceeds, projected investment earnings on proceeds and computation ofyields, together with any verification reports issued in connection with the issue; (vi) With respect to guaranteed investment agreements,or yield restricted defeasance escrows, documentation evidencing compliance with three-bid rulesset forth in Treasury Regulation Section 1.148-5 (vii) Any verification reports issued with respect to the issue; and (viii) Information reporting forms filed with the Internal RevenueService, and proofs offilings such forms. Expenditure ofProceeds The administrator of eachoffice that is responsible for spending proceeds ofthe District’s Tax—Advantaged Bonds will maintain recordssetting forth the date and amountof each disbursementofproceeds of Tax-Advantaged Obligations administered byits office, together with invoices or other proofs with respect to each disbursement, the nameofthe vendor or other payee, an identification ofthe facility or other property acquired, constructed, improved or renovated with the proceeds of such disbursement and a brief description of the actual work performedor property acquired with the proceeds of such disbursement. Within 120 days following the end of each fiscal year of the District, the administrator of each office of the District responsible for the expenditure ofproceedsof the District’s Tax-Advantaged Obligations shall submit a report (each, an “Annual Expenditure Report”) to the District Tax Compliance Designee setting forth with respect to each disbursement ofproceeds ofTax-Advantaged Obligations: 184 EXHIBIT C - 231 (i) the date of such disbursement; (ii) the amountofsuch disbursement; (iti) the funding source (e.g., specific G.O. measure or COPs issue); (iv) the location code andlocation name; (v) the object of expenditure; and (vi) the project numberanddescription, when available, or a brief description ofthe type of the expenditure. The District Tax Compliance Designee shall monitorthe receipt of, and maintain each Annual Expenditure Report and, based uponthe data set forth in the Annual Expenditure Report provided by each office of the District that is responsible for the expenditure of proceeds of Tax- Advantaged Bonds, and within 6 months after the end ofeach fiscal year, prepare a report setting forth the date, amount and purpose ofeach disbursementofproceeds ofeach issue of Tax- Advantaged Bondsduringthe priorfiscal year (the “Issue Expenditure Reports”). The term “purpose” shall mean each separate schoolfacility financed with a disbursementor a description of other property financed with such disbursement. , Private Use and Ownership Tax-Advantaged Obligations may lose their tax status if a bond issue meets (1) the private businessusetest (i.e., results in Private Use (defined below)) in Section 141(b)(1) of the Internal Revenue Code of 1986, as amended (the “‘Code”) and (2) (a) the private security or paymenttest (“Private Security or Payments”) in Section 141(b)(2) of the Code (collectively, the “Private Business Test”), or (b) the private loan financing test in Section 141(c) of the Code. ThePrivate BusinessTestrelates to the use of the proceeds ofan issue andthetest is met if more than the lesser of (1) $15,000,000 and (2) 10 percent? of the proceeds of an issue meet both prongs of the Private Businesstest. Definition of Private Payments. For purposesofthis Policy, “Private Payments” means payments derived, directly or indirectly, in respect of property used or to be used for Private Use. The District will periodically enter into arrangements that result in Private Use but will not involve any Private Payments. Except in thecaseofcertificates of participation, which involve leases of properties that are used in a Private Use or secures obligations that financed property used in a Private Use, or loans of bond proceeds, arrangements that result in Private Use, but do not involve Private Payments, will not cause the District’s general obligation bonds to become private activity bonds.‘ > Such ten percentlimitation is reducedto five percent with respect to Private Usethatis either unrelated to governmental uses of proceedsofthe sameissue, or disproportionate to related governmentalusesofproceeds of suchissue. “ Private use alone may cause the Private Business Testlimitations to be exceeded in the eventthat the obligations to that financed the privately used property is also secured by property used ina private use. For example,certificates ofparticipation in a lease ofproperty that is involvedin a private use that finance property that is also used in a 185 EXHIBIT C - 232 Definition of Private Use. For purposesofthis Policy, the term “Private Use” means any activity that constitutes a trade or business thatis carried on by personsor entities other than state or local governmentalentities (“Nongovernmental Entities”). State or local governmental entities are referred to herein as “Governmental Entities.” The United States of Americais not treated as a Governmental Entity. Any activity carried on by a personother than a natural person. is treated as a trade or business. Any asset financed with Tax-Advantaged Obligations not owned by a GovernmentalEntity will be considered to be used in a Private Use. In most cases, Private Use will occur only if a Nongovernmental Entity has a special legal entitlement to use the bond financed property. Such a special legal entitlement includes ownership or actual or beneficial use pursuant to a lease, management, service or incentive payment contract, output contract, research agreementor similar arrangement. Private Use may also be established solely on the basis of a special economic benefit to one or more Nongovernmental Entities. Management and Service Contracts. With respect to management and service contracts, the determination ofwhether a particular contract results in Private Use shall be based on the application of the Code and Treasury Regulations, including particularly Revenue Procedure 97- 13, 1997-1 C.B. 632, as amended by Revenue Procedure 2001-39, 2001-2 C.B. 39, a summary of whichis attached hereto as Exhibit A. Such management andservicecontracts include, butare not limited to, operating agreements, construction management agreements, business services agreements, technical consulting services agreements and othersimilar agreements. Further, for purposes of determiningthe nature ofa Private Use, any managementorservice contractthatis properly characterized asa lease for federal income tax purposes is treated as a lease. Consequently, any such agreements, even though referred to as a management or service contract mayneverthelessbe treated as a lease. In determining whether a managementor service contract is properly characterized as a lease, it is necessary to considerall of the facts and circumstances, including the following factors: (i) the degree of control over the property that is exercised by a nongovernmental person; and(ii) whether a nongovernmentalperson bears risk ofloss ofthe financed or refinanced property. Short-Term Use Exception. Arrangementsfitting within either of the following two exceptions will not result in Private Use. Use Pursuant to Generally Applicable and Uniformly Applied Rates. Use pursuant to an arrangement will not result in Private Use if (A) the arrangement doesnottransfer ownership of the property to a nongovernmental person, (B) the term of the use under the alrangement, including all renewal options, is not longer than 100 days, and (C) compensation under the arrangementis based on generally applicable and uniformly applied rates. Use Pursuant to Negotiated Arm's Length Arrangements. Use pursuant to an arrangementwill not result in Private Use if (A) the arrangement does nottransfer ownership of the property to a nongovernmental person, (B) the term of the use under the arrangement, includingall renewal options, is not longer than 50 days, and (C) the arrangementis a negotiated arm’s-length arrangement and compensation underthe arrangementis at fair marketvalue. private business use may becometaxable private activity bonds even ifthe District receives no payments with respectto such property. 186 EXHIBIT C - 233 Construction Contracts and Other Purchases of Capital Assets. A contract with a nongovernmental person to constructcapital assets orto sell capital assets to the District does not generally result in Private Use unless additional services are being provided by the nongovernmental person in connection with such contract, e.g, construction management or consulting services. Such services with respect to bond financed property must be analyzed for” Private Use under Revenue Procedure 97-13. Materials and Commodity Supply Contracts. A contract or purchase order for materials, commodities, inventory or other supplies from a nongovernmental person does not generally result in Private Use unless there are additional services being provided by the nongovernmental person in connection with the contracts, e.g., consulting services. Such service arrangements with respect to bond financed property must be analyzed for Private Use under Revenue Procedure 97-13. Ownership of bond financed property. If bond financed property is owned by a nongovernmental person, such ownership will be considered Private Use of the asset for purposes of the Private Use mes. Leases_of bond financed property. All leases of bond financed property to a nongovernmental person constitute Private Use of such property unless an exception for short term useis satisfied. Nonpossessory Incidental Use. Any nonpossessory incidental use such as vending machines, bank machines and similar uses may be excluded from the Private Use rules to the extent of 2.5% of an issue of Tax-Advantaged Obligations. Such use of bond financed property shall be tracked by Tax Compliance Designee. Joint Ventures, Partnerships or other forms of Joint Ownership. Entry into a joint venture, partnership or other form of joint ownership with a nongovernmental person generally gives rise to Private Use. Such arrangements with respect to bond financed property must be reviewed by bond counsel. Special Priority Rights or Special Economic Benefits. A contract which conveys special priority rights or special economic benefits in bond financed property to a nongovernmental person maycreate Private Use. In determining whether special economic benefit gives rise to Private Use of bond financed property, it is necessary to consider all of the facts and circumstances, including one or more of the following factors: (a) whether the bond financed property is functionally related or physically proximate to property used in the trade or business of a nongovernmental person; (b) whether only a small number of nongovernmental persons receive the economic benefit; and (c) whether the cost of the bond financed property is treated as depreciable by the nongovernmental person. Such arrangements with respect to bond financed property must be reviewed by bond counsel. Compilation and Maintenance of Logs Listing Arrangements Potentially Involving Private Trade or Business Use. From timeto time, the District enters into the following types of arrangements involving bond financed property: 187 EXHIBIT C - 234 e Use Agreements and Leases with Charter Schools e After School Programs ¢ Summer Camps e Civic Center Leases e Naming Rights e Other Leases, Licenses or Use Agreements Involving Bond Financed Property The arrangements described abovewill bereferredto in this Policy as “Arrangements”. The District Tax Compliance Designee will retain copies of the Arrangements, and maintain a log listing such Arrangements, which shall note with respect to each Arrangement(i) whether such Arrangement conforms to the Short-Term Use Exception described above, and (ii) if not, the amount of payments to be received by the District and whether such payments exceed the District’s incremental costs of operating and maintaining the subject facility arising from the Private Useof the subject property. The District Tax Compliance Designeeshall also compile and maintain a separate list of each arrangement described above that will not qualify for the Short-Term Use Exception and that provides paymentsto the District that will exceed the District’s incremental cost of operating and maintaining the subject facility arising from the arrangement(referred to as the “Potential Private Use Contract Log”).’ Each item listed in the Private Use Contract Logshall set forth (i) the issue or issues of Tax Advantaged Bondsthat financed property used in connection with such arrangement, (ii) the amountof proceeds of suchissue allocable to such property, and (iii) the amount of payments expected with respect to such arrangement, net of the incremental costs incurred by the District to operate and maintain the facility as a result of such arrangement. The District Tax Compliance Designee shall also compile and maintain the following logs: e Property Disposition Log. The District Tax Compliance Designeeshall compile and maintain a loglisting all assets of the District purchased with proceeds of Tax Advantaged Obligations that have been sold or otherwise disposed bythe District (each, a “Disposition”). The log should include with respect to each Disposition, the Issue of Tax-Advantaged Bonds that financed the acquisition, construction or renovation of such asset and the amount of proceeds of such issue that are allocable to such asset(the “Property Disposition Log”). * Arrangements involving property that was financed with proceeds ofany ofthe District’s certificates of participation will be listed n the Potential Private Use Contract Log regardless ofwhether the District is to receive any payments under such Arrangements. 188 EXHIBIT C - 235 ¢ Private Loan Log. The District Tax Compliance Designee shall compile and maintain a loglisting all proceeds of each issue of Tax-Advantaged Obligations applied to makeloansto third parties (the “Private Loan Log”). The Tax Compliance Designee shall update the respective logsat least annually. Structuring of Arrangements to Avoid Private Use or Private Payments. Itis the Policy of the District that to the extent consistent with the business objectives of the District, any potential Arrangement which might result in Private Use of bond financed property shall be structured so as to avoid or minimize Private Payments. Dispositions. Notransfer, sale or other proposed disposition of bond financed property by the District shall take place without the prior review and approval by the General Counsel, after consultation with bond counsel. Remedial Actions. In the event that the District is unable to satisfy the limitations with respect to Private Use and Private Payments with respect to any issue of Tax-Advantaged Obligations, the District Tax Compliance Designee shall consult with the General Counsel, the Chief Financial Officer and bond counsel and work with bond counsel to effect a remedial actions or take such otheractions as shall be required to maintain the tax-advantaged status of such bonds. The District Tax Compliance Designeeshall provide any information regarding the bond financed property to effectuate such remedial action to the General Counsel and the Chief Financial Officer. The District Tax Compliance Designee must maintain copies of the documentation with respect to the remedial action with the Potential Private Use Contract Log and attach such copies to the transcript of closing documents it maintains with respect to each affected issue of Tax-Advantaged Obligations. Periodic Review. Although the District will monitor Private Use ofassets financed with Tax-Advantaged Obligations and Private Payments relating to such use, the District Tax Compliance Designee will no less frequently than annually review and update the Potential Private Use Contract Log, the Disposition Log the Private Loan Log and the log that it maintains with respect to each issue of Tax-Advantaged Obligations. The District Tax Compliance Designee shall at least annually prepared a detailed calculation ofall existing Private Use and Private Payments, if any, that occurred during the prior year (the “Private Use Calculation”) with respect to each issue of the District’s Tax-Advantaged Obligations. The Potential Private Use Contract Log, the Disposition Log and the Private Usecalculations are referred to herein as the “Annual Reports.” The District Tax Compliance Designee will provide the Annual Reports, reflecting activity through the last day of each fiscal year, to the General Counsel by November 30th of the followingfiscal year. Arbitrage and Rebate Section 148 of the Code, the regulations promulgated thereunder and the pronouncement relating thereto (the “Arbitrage Rules”) are intended to ensure that issuers, such as the District, 189 EXHIBIT C - 236 are issuing Tax-Advantaged Obligations for the primary purpose of financing property needed by the District to carry-out its governmental purposes, and not for the purpose of taking advantage of the difference betweenits tax-advantaged costs of borrowingandits ability, if any, to invest proceeds of such obligations in higher yielding obligations. Continuing compliance with the Arbitrage Rules primarily involves ensuring that proceeds of Tax-Advantaged Obligations (“Proceeds”) are invested in accordance with yield limitations set forth in the Arbitrage Rules, exceptto the extent an exception to such yield limitation cannot be satisfied, and rebating certain investment earnings to the United States Treasury. With respect to certain issues of Tax- Advantaged Obligations, the District will need to ensure that all proceeds and investment earings are either expended on qualifying projects within specified periods, or portions of such issues are timely redeemed. Specific post-issuance procedures to effect compliance with the Arbitrage Rules are addressed below. However, the procedures set forth herein are not intended to be exhaustive and further procedures mayneedto beidentified and implemented,in consultation with the District’s staff, bond counsel, tax counsel, if any, and the District’s financial advisors and investment advisors. Since proceeds of the District’s bond issues are deposited in a Building Fund administered and invested by the Los Angeles County Treasurer and Tax Collector (the “County Treasurer”), and the County Treasurercollects and invests moneys to be used to pay debtservice on the District’s Tax-Advantaged Obligations, the County Treasurer shall also be involved in the development and implementationofthis Policy insofar as this Policy relates to compliance with the Arbitrage Rules. Procedures Generally — the following policies relate to procedures and systems for monitoring post-issuance compliance generally with the Arbitrage Rules. (i) The Chief Financial Officer has identified an appropriate staff member (currently the Treasurer of the District) responsible for monitoring the District’s post-issuance arbitrage compliance issues (the “Arbitrage Compliance Designee”). The Chief Financial officer of the District shall be responsible for ensuring an adequate succession plan fortransferring post- issuance arbitrage compliance responsibility when changesin staff occur. (ii) The Arbitrage Compliance Designee should coordinate procedures for record retention and review in accordance with the provisionsofthis Policy described below. In addition, the Arbitrage Compliance Designee shall ensure that adequate records are established and maintained to set forth the date, amount and nature of each expenditure of proceeds of each issue of Tax-Advantaged Obligations and investment earnings thereon (the “Proceeds”). Such records shall be consistent with and may be part ofthe Issue Expenditure Reports described under “Expenditure of Proceeds” above. The Arbitrage Compliance Designee shall also establish and maintain a record of each investment of Proceeds, which shall include (i) the purchasedate, (ii) the purchase price,(iii) information establishing that the purchasepriceis the fair market value as of such date (e.g., the published quoted bid by a dealerin such an investment on the date of purchase), (iv) any accruedinterest paid, (v) the face amount, (vi) the couponrate, (vii) periodicity of interest payments, (viii) disposition price, (ix) any accruedinterest received, and (x) disposition date. To the extent any investment becomesallocable to Proceedsafter it was 190 EXHIBIT C - 237 originally purchased,it shall be treated as if it were acquired atits fair market value atthe timeit becomesallocable to Proceeds. To the extent Proceeds are maintained by the County Treasurer, the Arbitrage Compliance Designee shall advise the County Treasurer of the requirementto maintain such records with respect to each investment of Proceeds by the County Treasurer, and obtain a copy of such records from the County Treasurerat least annually. (iti) The Arbitrage Compliance Designee should review post-issuance arbitrage compliance procedures and systems with bond counselortax counselat least annually. The following procedures shall be implemented with respect to the issuance of each issue of Tax-Advantaged Obligations: (a) Following the issuance of each issue of Tax Advantaged Obligations, the Arbitrage Compliance Designee shall confirm that the District Tax Compliance Designee has obtained and is maintaining each of the documents listed above under “Issuance of Obligations” including, a fully executed tax certificate with respect to such issue and any information reporting formsfiled with the Internal Revenue Service with respect to each issue, together with proof of filing. A copy of suchcertificate and information reporting forms, together with the Timetable (as defined below), shall be provided to the County Treasurer as soon as practicable after the issue date of each issue ofTax-Advantaged Obligations. (ii) | The Arbitrage Compliance Designee should confirm that bond counsel has filed with the Internal Revenue Service (the “IRS”) the applicable information report (e.g., Form 8038-G, Form 8038 or Form 8038-B)for suchissue. (iii) The Arbitrage Compliance Designee should coordinate receipt and retention of relevant books and records with respect to the investment and expenditure of the proceeds of such Tax-Advantaged Obligations with other members of the District’s staff and staff of the County Treasurer. (iv) A record should be maintained with respect to each issue of Tax-Advantaged Obligations containing a schedulesetting forth (i) the latest date such proceeds maybe invested at an unrestricted yield, (ii) the benchmarks that must besatisfied in order to meet an exception to the arbitrage rebate rules, (iii) the dates on which any arbitrage rebate computations are required to be completed andarbitrage rebate is required to be paid to the United States Treasury and (iv) any date by which proceeds are required to either be expended or applied to redeem bonds and any other dates on which all or a portion of the Proceedsof such issue are required or expected to be expended (the “Timetable”) Arbitrage ~ the following procedures should be carried-out from the issue date throu the final redemption date of each issue of Tax-Advantaged Obligations:. (i) The Arbitrage Compliance Designee should coordinate the tracking of expenditures and any investment earnings with other applicable District staff, including staff of the Facilities Division. The Arbitrage Compliance Designee should obtain and review at least monthly reports of the expenditure and investmentof proceeds ofeach issue of Tax-Advantaged 191 EXHIBIT C - 238 Obligations that are on deposit in the District’s Building Fund. The Arbitrage Compliance Designee should maintain a procedure for the allocation of proceeds of the issue and investment earings to expenditures, including the reimbursementofpre-issuance expenditures (ii) The Arbitrage Compliance Designee should obtain a computation of the yield on each issue of Tax-Advantaged Obligations from the District’s financial advisor, and obtain from bond counselor tax counsela listing ofall arbitrage yield restrictions attributable to Proceeds or amounts treated as proceeds ofeach issue. For example, with respect to each issue of qualified school construction bonds, the Arbitrage Compliance Designee should obtain from tax counsel or bond counsel the yield limitation with respect to any invested sinking fund established for such issue. (iii) | The Arbitrage Compliance Designee should monitor compliance with the applicable “temporary period” (as defined in the Code and Treasury Regulations), and expectations for the expenditure of proceeds of the issue, and advise the County Treasurer of the need to yield restrict investments with respect to proceedsthatare not eligible to be invested at an unrestricted yield pursuant to a temporary period. (iv) The Arbitrage Compliance Designee should coordinate with the County Treasurer and the bondtrustee, if applicable, to ensure that investments acquired with proceeds of each issue of Tax-Advantaged Obligations are purchased at fair market value. In determining whether an investmentis purchased at fair market value, any applicable Treasury Regulation safe harbor may be used. In the event Proceeds are invested in an investment contract or any other investment that is not traded on an established market, and for which fair market valuesare not continually published, the Arbitrage Compliance Designee or County Treasurer shall consult with bond counsel or tax counsel to ensure that fair market rules set forth in the Treasury Regulations aresatisfied. {v) The Arbitrage Compliance Designee should coordinate with the County Treasurer, the Chief Facilities Executive and the applicable bond trustee to avoid formal or informal creation of funds reasonably expected to be used to pay debt service on such issue without determining in advance whether such funds mustbe investedata restricted yield. (vi) | The Arbitrage Compliance Designee should consult with bond counsel or tax counsel prior to engaging in any post-issuance credit enhancementtransactions (e.g., bond insurance,letter of credit) or hedging transactions (e.g., interest rate swaps, caps). (vii) The Arbitrage Compliance Designee should coordinate with bond counsel to identify situations in which compliance with applicable yield restrictions depends uponlater investments and monitor implementationofany suchrestrictions. (viii) The Arbitrage Compliance Designee should coordinate with the arbitrage rebate consultant, as described in (ix) below, to monitor compliance with six-month, 18-month or 2-year spending exceptions to the rebate requirement, as applicable. 192 EXHIBIT C - 239 (ix) The Arbitrage Compliance Designee should coordinate with Chief Financial Officer to ensure that the District continuously engages a firm nationally recognized in the area of arbitrage rebate compliance with respect to each issue of Tax-Advantaged Obligations to arrange, as applicable, for timely computation of arbitrage rebate or arbitrage yield reduction liability and, if rebate or a yield reduction paymentis due to the IRS,for timely filing of Form 8038-T and,to arrange timely payment of such rebate liability. Such arbitrage rebate consultant shall also confirm whether any of the spending exceptions to the arbitrage rebate rules are satisfied. The Arbitrage Compliance Designee should ensure that each arbitrage rebate consultant is provided with a copy of the Timetable with respect to each issue of Tax- Advantaged Obligations and that the contract or engagementletter with such arbitrage rebate consultant provides for such arbitrage rebate consultant to work with the District to refine the Timetable and provide timely notification to the Arbitrage Compliance Designee of each deadline set forth in the Timetable. The Arbitrage Compliance Designee shall maintain with its records with respect to each issue of Tax-Advantaged Obligations copies of each report submitted by any arbitrage rebate consultant and each Form 8038-Tfiled by the District. (x) The Arbitrage Compliance Designee should, in the case of any issue of refunding obligations, coordinate with the District’s financial advisor, the applicable bondtrustee and the applicable escrow agentto arrange for the purchaseof the refunding escrow securities, should obtain a computation of the yield on such escrow securities from the Treasury’s outside arbitrage rebate specialist and should monitor compliance with applicable yield restrictions. Timetables should be adjusted to reflect the termination of temporary periods, the allocation of Proceeds of the refunded bondsastransferred proceeds of the refunding bonds and other matters resulting from such refunding. Retention of Records Retention of Records. As described above, the District is required to prepare the Annual Reports, which summarize and analyze certain underlying documentation related to the Tax- Advantaged Obligations. In addition to the requirement to retain the Annual Report, the District will also needto retain the related underlying documentation(the “Records”) described below. Records Required to be Retained. The Records that mustbe retained include, but are not limited to, the following: (i) All legal and accounting documents relating to proceeds of the Tax- Advantaged Obligations, including opinions of counsel and the tax certificate with Tespect to each issue ofTax-Advantaged Obligations. (ti) | Expenditure of Proceeds of Tax-Advantaged Obligations as described below. (A) Documents evidencing the expenditure of the proceeds of the Tax- Advantaged Obligations and investment earnings thereon and the specific assets financed with such proceeds, including projected draw schedules and invoices(e.g., records with respect to the bond accounts and funds); 193 EXHIBIT C - 240 (B) Documents setting forth all funds and accountsrelating to the Tax- Advantaged Obligations; (C) Documents pertaining to the investment of the proceeds of the Tax-Advantaged Obligations (e.g., records with respect to the bond accounts and funds), including the purchase andsale of securities, guaranteed investment contracts, and swap/hedge transactions; (D) With respect to all investments acquired in any fund or account in connection with the Tax-Advantaged Obligations, the information set forth under the heading “Arbitrage and Rebate”herein; (iii) | Documents evidencinganyallocations with respect to the proceeds of the Tax-Advantaged Obligations; (iv) | Documents evidencing the use and ownership of the bond financed property, including contracts for the use of such property (e.g., the Annual Reports, and the logs described herein, and documents evidencing the sale or other disposition of the bond financed property. Required Retention Periods. The District will retain the Records and Reports until the date thatis six years after the completeretirement of the related Tax-Advantaged Obligations. Form of Records. The District will keep all records in a manner that ensures complete access thereto for the applicable above described periodeither in hard copyorelectronic format. If the records are kept in electronic format, compliance is necessary with the requirements of Revenue Procedure 97-22, 1997-1 C.B. 652, (or subsequent guidance provided by the Internal Revenue Service), which provides guidance for maintaining books and records by using an electronic storage system that either images their hardcopy books and records ortransfers their computerized books and records to an electronic storage media (e.g, an electronic data compression system). Failure to Retain Records. A failure to maintain material records required to be retained by this Section may result in the loss of the tax status of the Tax-Advantaged Obligations and could causeadditional arbitrage rebate to be owed. Reissuance The followingpolicies relate to compliance with rules and regulations regarding reissuance of Tax-Advantaged Obligations issued by the District: General Counsel and the District Tax Compliance Designee are to (a) identify and consult with bond counsel regarding any post-issuance change to any terms ofan issue of Tax- Advantaged Obligations, (b) request bond counsel to determine whether such potential change would cause the issue to be treated as “reissued” for federal income tax purposes, and (c) confirm with bond counsel whether any “remedial action” in connection with a “change in use” 194 EXHIBIT C - 241 (as such terms are defined in the Code and Treasury Regulations) must be treated as a reissuance for tax purposes. Training The District shall engage its bond counselor special tax counsel to provide a seminar at least annually, which shall be attended by the District Tax Compliance Designee, the Arbitrage Compliance Designee, representatives of the Chief Financial Officer, the General Counsel and the Chief Facilities Officer and representatives of the District’s arbitrage rebate compliance consultant. The County Treasurer should also be invited to participate in such seminar. Such seminar shall include a review of the District’s complianceinitiatives during the prior twelve- month period, discussions relating to restrictions on the use of proceeds of Tax-Advantaged Bonds, arbitrage requirements and recent developments in such areas. 195 EXHIBIT C - 242 (THIS PAGE INTENTIONALLY LEFT BLANK) 196 EXHIBIT C - 243 APPENDIX K CAPITAL BUDGET For up-to-date information aboutthe District’s major capital programs,pleasevisit the following District websites: Existing and New Facilities: http:/Awww.laschools.ora/new-site/sep/ Information Technology Division: http://askitd.net/guiding/category/3-se 197 EXHIBIT C - 244 (THIS PAGE INTENTIONALLY LEFT BLANK) 198 EXHIBIT C - 245 SUPERINTENDENT'S 2013-14 FINAL BUDGET APPENDIX L NOTES NOTE 1 - SUMMARY OF ALL FUNDS 2009-10 2010-14 2011-12 Actual Actual Actual 2012-13 Third 2013-14 Budgeted Revenue and Revenue and Revenue and Interim Revenues Revenues and Interfund Adjustments Expenditures Expenditures Expenditures and Expenditures Expenditures General Fund $ 62,910,487 $ 88,137,848 $ 5,494,393 $ 23,533,440 $ 21,378,228 Cafeteria Fund 24,013,148 32,928,338 89,443,486 $4,552,529 $ 65,222,016 Adult Education Fund 168,283,839 - - 60,037,266 66,090,689 Child Development Fund 165,134 7,995,492 19,437,459 14,293,659 34,441,799 Deferred Maintenance Fund 940,905 348,575 - Special Reserve Fund 3,301,804 1,019,427 7,882,915 2,717,459 - Special Reserve Fund - FEMA - - : Building Fund - Measure Y 1,767,635 240,039,481 51,034,670 106,073,685 - Building Fund - Measure R 64,990,226 106,179,768 514,215,624 54,248,510 - Building Fund - Measure K 17,526,945 36,252,172 78,572,239 96,309,003 - Building Fund - Bond Proceeds 21,880,936 16,622,248 24,368,547 33,551,271 - County School Facilities Fund - Prop 47 31,328,066 26,954,097 37,479,010 129,168,513 - State School Building Lease/Purchase Fund 3,107,014 1,193,228 191,603 188,832 - Capital Facilities Fund 331,157 220,330 - 11,844,346 - Capital Services Fund 123,131,134 46,354,772 222,264,984 41,156,595 46,631,994 Workers' Compensation Fund 107,692,179 47,062,299 78,500,623 103,920,211 99,431,316 Health & Welfare Benefits Fund 951,260,488 948,561,760 939,663,857 925,142,723 950,144,846 Liability Self-Insurance Fund 40,182,923 11,615,668 30,037,703 67,531,418 21,177,137 Total Interfund Adjustments $_1,622,814,020 —$_1,641,485,503 $ 2,098,587,113 $ __1,724,269,460 $ _1,304,518,025 199 EXHIBIT C - 246 SUPERINTENDENT'S 2013-14 FINAL BUDGET APPENDIX L NOTE 2 - CAPITAL SERVICES FUND Other Uses The following table shows the source of funds for repayment of Certificates of Participation {COPs)and otherlong-term obligations,their purposes, the requirements in 2013-14, and the year in whichthese obligations will be fully repaid. 2004A COPs-Refi/Refunding 2005 COPs-QZAB-Repay/Int 2007A COPs-Information Technology Projects 2009A COPs-Repayment Food Project 2010A COPs-Refunding of 1997A & 1998A 2010B COPs-Repayment Capital Project | 2010C COPs-Repayment Capital Project |! 2012A COPs-Repayment/Interest-Refunding 2008A and 2008B 2012B COPs-Repaymeni/interest-Refunding 2001B and 2002C 200 Beginning Ending 2013-14 Date Date Payment 2003-04 2014-15 2,390,000.00 2004-05 2020-21 132,000.00 2006-07 2017-18 8,464,040.00 2008-09 2019-20 786,791.00 2009-10 2017-18 9,580,900.00 2009-10 2034-35 9,473,812.00 2009-10 2027-28 1,851,800.00 2011-12 2031-32 9,947,650.00 2011-12 2031-32 3,702,194.00 “S46;329.187_ EXHIBIT C - 247 NOTE 3 —- CAFETERIA FUND APPENDIX L Numberof Reimbursement 2013-14 Meals Served Rate Amount Federal Revenue National School Lunch Program Special Summer Lunch - § 3.4400 §$ - Breakfast - 1.9700 - Snack : 0.8100 $ - Special Assistance Program Lunch Free 42,125,583 2.9900 125,955,492 Reduced-price 3,204,717 2.5900 8,300,217 Full Price 8,550,252 0.3600 3,078,091 National School Breakfast (Regular)* Free 1,588,968 1.5800 2,510,569 Reduced-price 109,641 1.2700 139,244 Full Price 516,370 0.2700 139,420 Needy Breakfast* Free 29,171,919 1.8800 54,843,208 Reduced-price 2,120,676 1.5800 3,350,668 Full Price 5,100,828 0.2700 1,377,224 Snacks Free 321,588 0.7900 254,055 Reduced-price 3,287 0.4000 1,315 Full Price 26,005 0.0700 1,820 $ 199,951,323 Child and Adult Care Food Program Lunch Free 1,422,651 2.9100 §$ 4,139,914 Reduced-price 126,371 2.5000 315,928 Full Price 280,154 0.2700 75,642 Breakfast Free 1,296,878 1.5800 2,049,067 Reduced-price 115,153 1.2700 146,244 Full Price 255,631 0.2700 69,020 Snacks Free 1,245,650 0.7900 984,064 Reduced-price 110,599 0.4000 44,240 Full Price 245,532 0.0700 17,187 Supper 11,085,902 2.9100 32,259,975 $40,101,281 Cash In-lieu ofCommodities 12,915,078 0.2275 $ 2,938,180 Donated Commodities 16,188,254 Total Federal Revenue § 2591 79,038 201 EXHIBIT C - 248 NOTE 3 - CAFETERIA FUND (continued) StateRevenue National School Lunch Program Lunch Free Reduced-price Breakfast (Regular)* Free Reduced-price Breakfast (Needy)* Free Reduced-price Child and Adult Care Food Program Lunch Free Reduced-price Full Price Breakfast Free Reduced-price Full Price Total State Revenue “Includes Breakfast In The Classroom (BIC) 202 Numberof Reimbursement 2013-14 Meals Served Rate Amount 42,125,583 $ 0.2195 § 9,246,566 3,204,717 0.2195 703,435 1,588,968 0.2195 348,778 109,641 0.2195 24,066 29,171,919 0.2195 6,403,237 2,120,676 0.2195 465,488 $ 17,191,570 1,422,651 0.1634 § 232,461 126,371 0.1634 20,649 - 0.1634 - 1,296,878 0.1634 211,910 115,153 0.1634 18,816 - 0.1634 - $ 483,836 ~3_17,675,406_ EXHIBIT C - 249 APPENDIX M GLOSSARY OF BUDGET TERMS AND ABBREVIATIONS Budget Terms Abatement — A complete or partial cancellation of an expenditure or revenue item. AB 825 Block Grants — In 2005,the State combined more than two dozen categorical programsinto six block grants for purposesofflexibility. The six block grants are: (1) the “Protected Pair” — The Pupil Retention Block Grant and the Teacher Credentialing Block Grant; and (2) the “Flexible Four” — The Professional Development Block Grant, the School Safety Consolidated Competitive Grant, the Targeted Instructional Improvement Block Grant, and the School and Library Improvement Block Grant. The “Flexible Four” allow districts to transfer a maximum of 15% of funds from theblock grant into other block grants or other State categorical programs. Districts mayalso transfer an amountequal to 20% ofthe allocation into the “Flexible Four” from other block grants. The “Protected Pair” allowstransfers of up to 20% in but no transfers out. Academic Performance Index (API) — The API measures student achievement on certain standardized tests. Several Governor’s Initative programsuse schools’ API scores andtheir growth overtime on the Index to determinefunding. Accounts Payable — Amounts due and owed to private persons, business firms, governmental units, or others for goods received and/or services rendered. Includes amounts billed but not yet paid. Accounts Receivable - Amounts due and owedfrom private persons, business firms, governmental units, or others for goods received and/or services rendered. Includes amountsbilled but not received. Accrual Basis of Accounting— An accounting method in which revenues are recorded when earned, and expenditures when a liability is incurred, regardless of when thereceipt or paymentofcash takes place. School districts use the accrual basis of accounting for proprietary funds such as the Cafeteria and Self-Insurance funds, and fiduciary funds such as the Annuity Reserve Fund. (See also Cash Basis of Accounting and Modified Accrual Basis of Accounting). Administered Budget — An administered budgetrefers to resources managedbya division but spent elsewhere. For example, Facilities Division managesthe utilities budget for schools and offices, but the expendituresare attributed to schools and offices, not the Facilities Division. Administrative Services Credit — A credit (negative) amount budgeted to reflect indirect Administrative Services costs charged to certain programs. This is necessary to eliminate duplication of the cost in the total District budget. Ad Valorem Tax — A tax based on a percentageofthe value ofgoodsorservices. American Recovery and Reinvestment Act (ARRA)- Also knownasthe federal stimulus bill, the American Recovery and Reinvestment Act wassigned into law in February 2009. The legislation is designed to stimulate the U.S. economyand provided additional education funding nationwide from 2009 to 2011. Arbitration — A form of alternative dispute resolution in which a third party reviews the evidence in the case and imposes a decision that is legally binding for both sides and enforceable. Appropriation — An authorization, granted by the governing board, to make expenditures and to incur obligations for special purposes. An appropriation is usually limited in purpose, amount, and the time period during whichit may be expended. Audit - An examination of documents, records, and accounts for the purpose of (1) determining the propriety of transactions; (2) ascertaining whethertransactions are recorded properly; and (3) determining whether statements drawn from accounts reflect an accurate picture offinancial operations andfinancialstatus for a given period oftime. 203 EXHIBIT C - 250 Authorized Positions — Positions, both filled and vacant, for which authority is provided in the budget. All positions are budgeted asfull positions, even if they provide service on a part-time basis. Average Daily Attendance — A measureofpupil attendance used asthe basis for providing revenue to schooldistricts and as a measure of unit costs. Only in-seat attendance is counted in computing ADA. Base Revenue Limit —- The basic State funding to K-12 education. It is expressed either as an amount per ADAor asa dollar amount. TheDistrict’s most important funding source, Base Revenue Limit funding is comprised of a combination of State tax revenues andlocalproperty tax allocations. Block Grant — A funding methodology in which the granting authority (e.g., the State) groups multiple programs into one entity for funding purposes. This is usually done for purposes of improving funding flexibility; districts may choose to increase or decrease funding for programswithin the block grant, depending upon the perception ofthe individualdistrict regarding the relative value ofthe individual programs. Bond — A certificate containing a written promise to pay a specified amountofmoney,called the face value, at a fixed time in the future, called the date of maturity, and specifyinginterest at a fixed rate, usually payable periodically. Budget — A plan offinancial operation consisting of an estimate ofproposed revenue and expenditures for a given period and purpose. Theterm usually indicates a financial plan for a single fiscal year. : Budget Adjustment(or “Budget Transfer”) — A change among budgeted items. California State Lottery —Proposition 37, passed by the voters in November, 1984, established the California Lottery. The lottery distributes funds to schooldistricts for instructional purposes. Lottery funds cannot be used for purchase or construction offacilities, for land, or research. Because the initiative does not define “Snstructional,” school districts have widelatitude in the use oflottery funds. Districts are requiredto utilize 50% ofany increased funding above the 1997-1998 base year for instructional materials. . Capital Expenditures — Accordingto the California School Accounting Manual, capital expenditures are those “forsites, buildings, books, and equipment, including leases with option to purchase, that meet the LEA’s threshold for capitalization.” Categories ofexpenses recorded as capital expenditures include: land, buildings, site improvements, and sometypes of equipment. Equipmentalso includeslibrary books, and project managementcosts that can be assigned to an individual capital project. Capital Outlay — Amounts paid for fixed assets or additionsto fixed assets, includinglandorexisting buildings, improvement ofgrounds, construction of buildings, additions to buildings, remodelingofbuildings, or initial and additional equipment. Capital Project Funds -— District Funds dedicated to facilities construction and repair. Carryover (or Carryforward) — Unexpendedbalancesthatare carried forward from onefiscal yearto the next in accordance with programmatic or District guidelines. Funds may carry forward at a particular location or may becarried forward andredistributed as part of a new year’s allocation, depending on program guidelines. Cash Basis of Accounting — An accounting method in which revenues are recorded when cashis received and expenditures (or expenses) are recorded when cashis disbursed. Schooldistricts do not use the cash basis of accounting. (See Accrual Basis ofAccounting and Modified Accrual Basis of Accounting). Categorical Mega-Item — Refers to categorical programsthat are grouped into one funding item in the State Budget by legislative action. This is usually done to avoid possible vetoes of specific programs. Districts are given the authority to transfer a percentage ofMega-Item funding between programsthat comprise the Mega-Item. Categorical Programs — Programs funding activities that are supplementalto the District’s basic instructional program. These programs maybeincluded in the General Fund Restricted, Unrestricted, or in a number of Special Funds. 204 EXHIBIT C - 251 Certificated Salaries — Salaries paid for services that require a credential. These include teachers, counselors, assistant principals, and principals. Certificates of Participation (COPs) — A financing technique which provides funding through the sale of papers, backed by a specific capital asset, for capital cost items. Charter Schoo} ~ Under State law, charter schools operate semi-autonomouslyofthe District. A “fiscally independent” charter school receives funding directly from the State and develops curriculum in compliance with state and federal guidelines. An “affiliated” charter school continuesto receive funding from the District but develops curriculum that may differ from that ofthe District. Child Days of Enrollment — Children’s Centers generate revenue on the basis of Child Days of Enrollment, which differs from the ADAcalculations used for schools. Civic Center Rentals - Rental of space at school sites during non-school hours by designated groups. The Districtis required to charge an appropriate amountforthe use ofthe facilities. These charges become part of the District’s General Fund revenues. Classified Salaries — Salaries for services that do not require a credential, such as clerical and custodialstaff. Community Day School — A schoolsite for service to students who have been expelled, referred by SARB,or denied attendance at a regular schoolsite. By law, CDSs must belocated on sites separated from regular District campuses. Compensatory Education — Comprised ofESEA ~ Title 1, Economic Impact Aid, and School Improvement Programs; provides supplementary funding for schools with a specified percentage of students who qualify for funding under program guidelines. These include students receiving free or reduced price lunch and students identified as at-risk. Concept 6 Calendar — A 3-track, year-round calendar with 163 instructional days of 6.6 daily hours. Concurrently Enrolled — Students enrolled simultaneously in a K-12 school and ina Regional Occupational Center or Adult Education Program. Continuous — See “Ongoing.” Current Expense of Education — The current General Fundoperating expenditures for kindergarten through grade twelve. This excludes expenditures for food services, community services, non-agencyactivities, fringe benefits for retired persons, acquisition and construction offacilities, and other outgoitems. , Debt Limit — The maximum amountoflegally permitted debt. Debt Service — Expenditures for retirement of debt and interest on debt (e.g., COPS and bonds). Deficit Factor — A percentage deduction from a funding source, such as the revenuelimit. Deficit Spending — The excess of actual expenditures over actual revenues (also referred to as an operating deficit). Designated Balance — Theportion of the previous year’s ending balance committed by statute or by District policy and therefore unavailable for general purpose allocations. Developer Fees — District revenue resulting from fees levied upon new residential, commercial, or industrial development projects within the District’s boundaries in order to obtain additional fundsfor the construction ofschools. Direct Services — Services that are delivered at the school site where the studentis the direct recipient or beneficiary ofthe services. Examples include personnel that provide direct, hands-on instruction to students. 205 EXHIBIT C - 252 District Defined Programs — Programs within the General Fund that are summarized asdistinct programswithin the budget document. District Defined Programs are selected for increased recognition in the budget because they havesignificant financial implications or because the Board has indicated a desire that financial information about the program be reflected in the budget document. Elementary and Secondary Education Act (ESEA)- In 1965, President Lyndon B. Johnson passed the Elementary and Secondary Education Act as a part of the "War on Poverty.” ESEA emphasizes equal access to education and establishes high standards and accountability. The law authorizes federally funded education programsthat are administered by thestates. In 2002, Congress amended ESEAandreauthorized it as the No Child Left Behind Act (NCLB). Employee Benefits - Expenditures for employer contributions to retirement plans, for social security, workers’ compensation, unemployment insurance, health and medical benefits, and other employee “fringe benefits.” Encroachment — Costs of a District Defined Program such as Special Education that exceed the program’s earned income. Encroachmentis covered through Interprogram Adjustments, usually from General Fund -- Unrestricted Program resources. Encumbrance — An obligation such as a salary, purchase order, contract, or other commitmentto spend,that has been recognized in the accounting records but notyet finalized as a formal expenditure. Enterprise Funds — Funds used to account for activities of an LEA that, becauseoftheir income-producing character, are similar to those found in the private sector. Entitlement — An apportionmentthat is based on specific qualifications or a formula definedin statute. Equalization Aid — State funds intended to equalize funding differences between districts receiving lower revenuelimit amounts per-ADAand those receiving higher amounts. Equalization aid is typically provided based on the type and size of school districts. Small elementary district revenue limits are compared with other small elementary districts; large unified districts such as LAUSDare comparedwith other large unified districts, etc. Expenditure — The cost ofgoods delivered or services rendered. Federal Emergency Management Act — A funding source for building repairs related to the January 17, 1994 earthquake, and for hazard mitigation measures. FEMA funds mayalso beallocated for other natural disasters. Federal Jobs Bill - United States Senate Bill $3206, otherwise known as the Keep Our Educators Working Act of 2010, provided $23 billion to help keep teachers, principals, librarians and other school personnel employed asstates faced crippling budget shortfalls. Fees — Amounts collected from orpaid to individuals or groups for services or for use of a facility. Fiduciary Funds — District Fundsutilized as holding accounts for amounts owed to employees under various agreements. Final Budget — The Final Budgetis the District’s official operating budget upon Board adoption, which mustoccur prior to June 30 ofthe preceding budget year. The Final Budget is submitted to the Los Angeles County Office of Education (LACOE)for approvalin accordance with guidelines provided in the Education Code. Fiscal Year — A period of one year, the beginning and ending dates of which are fixed by statute. The fiscal year for California schooldistricts begins July 1“ and ends on June 30". Function — Under the Standardized Account Code Structure (SACS), function refers to activities or services performed to accomplish a goal. Fund — A sum ofmoneyorother resourcesset aside for the purpose of carrying on specific activities or attaining certain objectives. 206 EXHIBIT C - 253 Fund Balance — Accordingto the California School Accounting Manual (Procedure No. 207), the fund balance is determined by subtracting the fund’stotal liabilities from the total assets. The difference is the fund balance. Fund Balance Classification - GASB 54 implements a five-tier fund balanceclassification that depicts the extent to which the district is bound by spending constraint imposedontheuse ofits resources. ¢ Nonspendable Fund Balanceconsists offunds that cannot be spent dueto their form. These include inventory and prepaid itemsorfundsthat are legally or contractually required to remainintact, such asthe principalofa permanent endowment. Restricted Fund Balance consists offunds that are subject to externally imposed andlegal constraints, Committed Fund Balance consists of funds that are subject to internal policies and constraints. These policies are self-imposed bythe District’s highest level of decision making authority.. ¢ Assigned Fund Balanceconsists of fundsthat are intended to be used for a specific purposebythe district’s highest level oran official with the authority to assign funds. ¢ Unassigned Fund Balance consists of residual fund balancethat has not beenclassified in the previous four categories. It represents resources available for future spending. General Fund — The Fund used to summarize costs of the District’s basic operations. The District’s General Fundincludes both Restricted and Unrestrictedactivities. Gifted and Talented Education — A State-funded program within the General Fund that provides supplemental funding for identified qualifying students. Goal — Under SACS,a goal defines an objective or set of objectives for the LEA. It is used to accountfor the cost of instruction and other services bythe instructional goals and objectives of an LEA. Goyernor’s Budget— The Governor’s Proposed State Budget, or “Governor’s Budget,” is published each January, and represents his initial public disclosure ofhis financial assumptions andspendingpriorities for the comingfiscal year. Grant — A contribution, either in money or material goods, made by one govemmentalagencyto another. Grants maybe for specific or, rarely, for general purposes. Hourly Programs — Programs funded by the State on the basis of hours of attendance rather than ADA.Refers primarily to summerandintersession classes, but also applies to programssuchasafter-school intervention, Saturday School,etc. Implemented Budget — Budget for Restricted Programsthat has been allocated to specific appropriations for expenditure. Indirect Cost — Elements ofcost necessary in the operation ofa district or in the performanceofa service that are of such nature that the amountapplicable to each accounting unit cannot be determined readily. It consists of those business and administrative costs (e.g., accounting, budgeting, personnel, purchasing)that benefit the entire district. Indirect Cost Rate — A method for claiming reimbursementofindirect costs from federal and state categorical funds. It is the ratio (expressed as a percentage) ofthe indirect costs to direct base costs. Interfund Transfers — Income and expenditures initially recorded in the General Fund and then trans ferred, in accordance with accounting requirements, to a Special Fund. Interim Reports — Accounting reports prepared as of a date or a period during the fiscal year. They include budgetary estimates, financial transactions during current year-to-date, and end-of-year projections. California school districts are required to publish a first interim report in December based upon Octoberdata, and a secondinterim report in March based on January data. A third interim report may be required by the County Office of Educationifit has significant concerns regardingthe financial viability ofa district. Internal Service Funds — District Funds dedicated to self-insuranceofcosts such as employee health and medical benefits, liability insurance, and worker’s compensation. 207 EXHIBIT C - 254 Interprogram —-Costsofa District Defined Program that exceed the program’s income must be covered from other General Fund revenues, Suchcosts are covered through “interprogram”transfers from the General Program. LCAP ~ Local Control Accountability Plan — See Local Control Accountabilty Plan below. LCFF — Local Control Funding Formula — See Local Control Funding Formula below. Least Restrictive Environment (Special Education Program) ~— Describes the legal requirement to educate students with disabilities with their non-disabled peers to the greatest extent appropriate. Limited — See “Onetime.” Local Control Accountability Plan (CAP) — A Board adopted Districtwide plan identifying the academic interventions and strategies that will be implemented to address the academic needsof students receiving supplemental and concentration funding under the Governor’s Local Control Funding Formula (LCFF). The plan as currently discussed will be a new required componentofthe annualDistrict budget document adopted by each district Board of Education. Local Control Funding Formula (LCFF) — The Goveror’s proposed public education funding reform, whichreplaces the Base Revenue Limit funding formula and moststate categorical sources, with a base revenue grant, and needs-based supplementat! funding based on the numbers of identified students who are English Learners, socioeconomically disadvantaged or who are in foster care. The formula also provides a concentration grant for Districts with unduplicated student counts exceeding 50% in any one ofthe previously mentioned supplemental funding categories. Mandated Cost Reimbursements — The Califormia Constitution requires that the State reimburse local governmental entities, including schooldistricts, for the cost of complying with State or court mandates. The reimbursementis known as a Mandated Cost Reimbursement. MayRevision (or “May Revise”) — Published each May,this State document updates the Governor’s Budget published in January with regard to the Governor’s State revenue projections and spendingpriorities for the coming fiscal year, Measure K ~ A local schoolfacilities bond measure, passed by the voters on November5, 2002. Measure K proceeds may be used to repair, renovate, acquire, construct, or lease school buildings, includingclassrooms,libraries, restrooms, science laboratories, and other capital projects. Proceeds mayalso be used: to acquire instructional materials (including library books); upgrade fire/security systems; perform earthquakeretrofitting; install lighting, plumbing, and heating; remove asbestos andlead paint; upgrade wiring for computers; and build new neighborhoodschoolsto relieve overcrowding. Funds maynot be used for non-Measure K-related administrative salaries. Measure Q— Passed by voters in Novemberof2008, this measure provides additional fundingto repair and upgrade aging classrooms. Measure R— Passed bythe voters in March of 2004, this measure provides additional funding to reduce school overcrowding, build new schools, repair and upgrade aging classrooms, and other facilities-related purposes. Measure Y~ Passed by the voters in November of 2005; this measures provides additional funding to return all schools to a two-semester calendar, end involuntary busing, focus on critically needed schools for younger students, and ensure that every community receivesits fair share ofnew schools and classrooms. Measure Y will continue to repair and upgrade aging and deteriorating classroomsand restrooms, build new schools, upgradefire and safety and emergency response equipment, and eliminate asbestos andlead paint hazards. Modified Accrual Basis of Accounting — In the modified accrual basis of accounting, revenuesare recognized in the period whenthey becomeavailable and measurable, and expenditures whena liability is incurred, regardless of when thereceipt or paymentofcash takes place. Schooldistricts use the modified-accrual basis of accounting for operating funds such as the General Fund and Adult Education Fund. 208 EXHIBIT C - 255 Multiyear Financial Plan — A plan that presents financial estimates of programsin tabular form for a period of years. These estimates reflect the future financial impactofcurrent decisions. California schooldistricts are required to publish three-year financial plansreflecting estimates for the budget year and two subsequentfiscal years. Ninety/Thirty (90/30) Calendar — A year-round calendarin which students are assigned for 90 schools days, off for 30, then on for 90. Norms — For most schools, the District uses Board-approved “norms”to determine the base number of teachers, school administrators, schoolclerical positions, and various resources at each school. Norms generally use student enrollments to determine the resourcesto be allocated to individual schools. For example, norms maydictate that schools should receive 1 teacher per 30 students, one clerical employee per 100 students, one counselor per 500 students,etc. To calculate norm allocations, the District uses the numberofstudents enrolled at each school on “norm day,” which is generally the Friday of the fourth week of school. Other factors mayalso be used in norm allocations. For example, the allocation of custodians is based on a complex formula thatincludes the school’s square footage . The District normsare published in the form of “norm tables” which describe the factors utilized in determining the individual norms. Objects of Expenditure — California schooldistricts are required to develop their budgets and report expenditures by “Object of Expenditure,” which reflects specific categories of cost such as Teachers’ Salaries, Textbooks,etc. Onetime — Revenueor expenditureline-items not expected to continue into the subsequent year. Ongoing — Revenueor expenditure line-items that are expected to continue into the subsequentyear. Operational Budget — The positions and other resources which enable an operating unit to perform the functions for whichit is responsible. Distinguished from administered budgets in that the unit controlling and benefiting from the resources are one and the same. Overdraft — The amount by which expenditures and encumbrances exceed the budgetavailable for them. Pending Distribution — Accounts in the budget held for distribution to expendable appropriations during the course ofthe fiscal year. Generally, fundsare placed in a Pending Distribution account because of funding uncertainty or because no spending plan has been received. Funds mustbetransferred from the Pending Distribution account to expendable accounts before spending may occur. Position Control — A system developed to control salary and benefit costs by comparing budgeted positions to assignments andpayroll so that only employees with budgeted positions and active assignments can bepaid. Preliminary Budget ~ The first budget published by the District annually (usually in March or April). The Preliminary Budget is intended to provide Board Membersandthe public information on available revenues and expenditure requirements for the coming fiscal year, in order to assist in financial planning. The Preliminary Budget is based on information from the Governor’s Proposed (January) Budget, the First Interim Financial Report, and other sources. Program Code — Four-digit code used in budgeting and controlling expenditures. Use ofprogram codesfacilitates tracking and identification of specific expenditures. Also referred to as Appropriation Code. Proposition 20 — 50% of lottery funding above the 1997-98 funding level must be used for purchase ofinstructional materials, in accordance with Proposition 20, passed by the voters in March, 2000. Proposition 47 - The passage of Proposition 47 in November 2002 authorized the sale of bonds to provide funding for the State SchoolFacilities Fund, which provides for new school facility construction, modernization projects, and facility hardship grants. Proposition 49 — Passed by the voters in 2002, this program expanded existing before- and after-school programs beginning with the 2006-07 school year. 209 EXHIBIT C - 256 Proposition 55 — The State Kindergarten-University Public Education Facilities Bond Act of2004 was passed bythe voters in March of2004. Provides funds for locally approved bond measures for the purpose of building new schools and classroomsto relieve overcrowding. - Proposition 98 — Passed by the voters in 1988, Proposition 98 provides the formula by which the amountof moneyto be allocated to statewide K-14 education in California is determined. Proposition BB —- LAUSD facilities bond measure passed bythe voters in April of 1997. Public Employees’ Retirement System (PERS) — Unless exempted bystate law,classified employees, their district, and the State contribute to this retirement fund. Quality Education Investment Act — Funds approved aspart ofthe settlementofthe CTA v. Schwarzeneggerlawsuit, intended to improve education, primarily through class-size reduction, at Decile 1 and 2 schools. Funds are provided over a seven-yearperiod, with participating schools determined through a random lottery. Schools must meet achievementcriteria in order to remain eligible for funding. Fundingforthis program begins in 2007-08. RAB (Reserve for Anticipated Balances) — See Reserve for Anticipated Balances Regional Occupational C nters — Provide vocational training classes for high school youth and adults in a variety of occupations Requisition — A document submitted initiating a purchase order to secure specified articles, services, or issuance of materials from stores, a warehouse, or a vendor. Reserve — An accountused to earmark a portion of a Fund,to indicate thatit is not currently available for expenditureoris set aside for future use at the Board’s discretion. Amounts held in reserve cannot be expended without the Board’s formal approval. Reserve for Anticipated Balances (RAB) ~ The Reserve for Anticipated Balancesservesto identify the difference between the estimated and authorized budgeted revenues and/or authorized and estimated expenditures, in the adopted budget. Reserve for Economic Uncertainties — The Districtis required to maintain a 1% reserve to offset the potential impact of unanticipated overexpenditures or revenueshortfalls. Restricted — Program funding thatis limited to specific students or types of expenditure. E.g., Gifted and Talented,Title I, etc. See Categorical. Also see Unrestricted. Revenue Limit — The revenue limit is the largest and most importantrevenuesource to the General Fund. The revenue limit is funded from a combination of State funds and local property taxes, andis allocated on the basis of a rate per A.D.A. multiplied by the District’s P2 A.D.A. The State COLA provides the basis for increasing the revenuelimit. Revenues — The funding available to an organization from outside sources. Revenuesare the primary financial resource of a Fund. putine Repair and General Maintenance Program — Provides for the repair of District buildings, equipment, and grounds,as well as for planning and implementation ofalterations and improvementsofexisting structures. Districts are required to commit 3% oftheir budgeted General Fund amountfor purposes ofroutine repair and general maintenance as a condition ofparticipating in the State building program. The General Fundtransfer to the Deferred Maintenance Fund can comprise half of one percent. Maintenancecosts to other funds such as the Adult Education Fund or Child Development Fund can also be applied toward the 3% requirement. SACS-2000 — The form used by local school districts to report financial information to the County Office of Education. Replacedthe J-200 reporting form. “SACS”is the abbreviation commonly used for “Standardized Account Code Structure.” 210 EXHIBIT C - 257 Sequestration - Sequestration is the $1 trillion in savings that Congressis required to identify in the Budget Control Act of 2011. If Congress fails to make sufficient cuts, automatic budget reductions are triggered, reducing the District’s share of federal programs such as Title I (Socioeconmically Disadvantaged Students ) and Title III (English learners). Special Education Program — Providesinstructional and other services to students who have special needs outlined in an Individualized Education Programresulting from physical, emotional, intellectual or learning disabilities. Special Education Local Plan Area (SELPA)— In 1977, all California schooldistricts and county offices were required to form geographical regionsofsufficient size and scopeto provide the federal mandated special education programs and services to meet the unique needsofindividual children residing within the region’s boundaries. Each region, or SELPA, develops and maintainsa local plan describing how the SELPAwill guarantee and provide special education programs and services. Becauseofits size, Los Angeles Unifiedis a single-district SELPA. Special Education —~ Low Incidence — Students with disabilities such as Deaf, Hard of Hearing, Visual Impairment including Blindness, or serious Orthopedic disability, which may be more costly for a school district to serve. A separate funding stream within the Special Education Program intended for purchase of equipment neededforinstruction ofidentified students with certain disabilities. Special Funds — Separatefinancial entities within the budget which provide for specified activities, as defined in the California Education Code. Examples are Adult Education Fund, Building Fund, Cafeteria Fund, etc. Standardized Account Code Structure (SACS)— Statewide standardization ofschooldistrict budgeting and accounting codes, in order to increase uniformity of accounting and facilitate statewide data collection and analysis. State Mandated Cost Reimbursements — Revenue received by the District in reimbursementfor programs oractivities resulting from State mandates or court orders. The California State Constitution requires that the State reimburse local governmental agencies for mandatedactivities. State Teachers’ Retirement System (STRS) — State law requires certificated employees, schooldistricts, and the state to contribute to this retirement fund. Stimulus — See American Recovery and Reinvestment Act. Statutory COLA — The cost of living adjustment (COLA)calculated based on the percentage changein the annualaverage value of the Implicit Price Deflator for State and Local GovernmentPurchases ofGoods and Services for the UnitedStates, as published by the United States Department of Commerce (Education Code §42238.1[a][2]. Student Body Fund — An agencyfund to controlthe receipts and the disbursements ofstudent association activities. Student body fundsare not the property of the schooldistrict and are notreflected in the District budgetor accounts. Student Integration Program — Combined the Court-Ordered and Voluntary Desegregation Programsto create a wide variety ofprograms to address the harmsofracial isolation in District schools. The Crawford v. LAUSDlegal decision formally created this program Targeted Instructional Improvement Grant — Funds the costs of ongoing desegregation efforts and, iffunds remain, the needs ofunderachieving schools. Replaces StudentIntegration funding in the 2002-03 State Budget. Tax and Revenue Anticipation Notes — Short-term notes issued in anticipation ofreceipt of revenues, typically for cash flow purposes. Teachers As A Priority — State-funded program intended to enhance the ability of low-performing schools to attract and retain quality teachingstaffs. The “Deal” — In 2004-05,in order to bring the State Budget into better balance, the Governor agreed with the Education Coalition that public education would receive $2 billion less thanits Proposition 98 entitlement. The Governorindicated that public education would continueto receiveits fair share ofany unanticipated revenues. In 2005-06, despite substantial State 2t1 EXHIBIT C - 258 revenue increases in both 2004-05 and 2005-06, the Governordid not provide additional funding to public education, leading to the CTA and O’Connell v. Schwarzeneggerlawsuit. In the 2006-07 State budget, the lawsuit wassettled out-of-court, and the Governor agreed to provide the additional funds. Tier I Program — Refers to categorical programs that were not reduced in the State Budget approved bythelegislature and signed by the Governorin February 2009. Schooldistricts cannot redirect funding for these programsto other educational purposes. Tier I] Program — Refers to categorical programs that had reduced funding in the State Budget approved bythelegislature and signed by the Governor in February 2009. Schooldistricts cannot redirect funding for these programs to other educational purposes. Tier tI Program — Refers to categorical programs that had reduced fundingin the State Budget approved bythelegislature and signed by the Governorin February 2009. Unlike Tier II Programs, schooldistricts can redirect funding for these programsto any other educational purposeovera five-year period ending July 1, 2015. Undesignated Balance - The portion ofthe previous year’s ending balance that is uncommitted and available for discretionary use. All balancesare onetimein nature. Ungraded ~ Some programs,such as special education, group children into classes based on ability level rather than grade level. Such programsarereflected in the “Ungraded”section of attendance/enrollment reports. Unimplemented Budget — Reflects Restricted Program incomethathas not yet been received butis anticipated in the budget. Asgrants are received during the year, the budgets ofthese programswill be implemented,or placed into expendable appropriations. Unrestricted — Refers to programs which provide funding that may be used for any educational purposeat the discretion of the Board of Education. Weighted Student Formula — A method ofallocating resources based on the characteristics of student populations. Weighted student formulasprovide a basic per pupil allocation with additional resources— based on student weights — for economically disadvantaged, English learners, special education, or other defined student populations. 212 EXHIBIT C - 259 Budget Abbreviations As- Alterations and Improvements of Buildings orSites ARRA ~ American Recovery and Reinvestment Act AB~ Assembly Bill. Applies to State legislation (e.g., Assembly Bill 602 would be abbreviated as AB 602) > BE - Adult Basic Education Program > CA — Assembly Concurrent Amendment nad iOR -- Assembly Concurrent Resolution SA — Average Daily Attendance AEWC~ Alternative Education and Work Center AFDC - Aid for Dependent Children AP - Advanced Placement PI — Academic PerformanceIndex> AYP — Adequate Yearly Progress A - Budget Adjustment (“Budget Transfer”) SA ~ Budgeting for Student Achievement Business Tools for SchoolsoeBTS BISA— Beginning Teacher Support and Assessment €— Certificated Salaries CAHSEE- California High School Exit Examination CalWORKS ~ California Work Opportunity and Responsibility to Kids CAP (TIIG/Student Integration Program) -— Capacity Adjustment Program CBEDS-~ California Basic Education Data System CBEST— California Basic Education Skills Test CBET — Community-Based English Tutoring Program CDE ~ Child Days of Enrollment (used in Child Development Fund) CDE ~ California Department of Education a S- Community Day Schools COLA - Cost of Living Adjustment Comp Ed. — Compensatory Education 213 EXHIBIT C - 260 COPs— Certificates of Participation———= iC PI~ ConsumerPrice Index PR — California Performance ReviewIQ EB | ~ Community Redevelopment Agency IC aSR -— Class Size Reduction IQSR - Comprehensive School Reform CST - California Standards Test CTACalifornia Teachers’ Association CY - Current year DDP - District Defined Program DIS (Special Education Program) — Designated Instructional Services (or Designated Instruction and Services) DOF - California Department of Finance DRS (TITG/Student Integration Program) — Desegregated Receiver Schools EIA - Economic Impact Aid. This program has two components: EIA-Bilingual and EIA-Compensatory Education ELAP ~ English Language Acquisition Program ELL - English LanguageLiteracy Program ERAF- Education Revenue Augmentation Fund ERP- Enterprise Resource Planning ESEA~ Elementary and Secondary Education Act ESL- English as Second Language FEMA— Federal Emergency Management Act, or Federal Emergency Management Agency FSEP~ Federal and State Education Programs FTE~ Full-time Equivalent GAAP -- Generaily Accepted Accounting Principles GASB---Governmental Accounting Standards Board GAIN (Adult Education Program) — Greater Avenues for Independence GATE- Gifted and Talented Education Program GED - General Educational Development 214 EXHIBIT C - 261 GFOA — Government and Financial Officers’ Association GQ— General Obligation (Bond) HPSGP— High Priority Schools Grant Program IASA — Improving America’s Schools Act TAU - Independent Analysis Unit IDEA- Individuals with Disabilities Education Act IEP ~ Individualized Education Program II/USP — Immediate Intervention/Underperforming Schools Program — Instructional Materials (or “Materiel”)>M ITD ~ Information Technology Division JTPA ~ Job Training Partnership Act KLCS — TV ~ The District-owned and operatedtelevision station LAAMP ~ Los Angeles Annenberg Metropolitan Project LACOE -— Los Angeles County Office of Education LAEP — Los Angeles Educational Partnership LAO - Legislative Analyst’s Office LCAP- Local Control Accountability Plan LCFF — Local Control Funding Formula LCI - Licensed Children’s Institution LEA - Local Educational Agency (generally refers to a local school district) LEP —~ Limited English Proficient or Proficiency LRE (Special Education Program)— Least Restrictive Environment MTYRE — Multi-Track Year-Round Education NC— Non-Certificated (Classified) Salaries NCLB - No Child Left Behind NPA (Special Education Program) — Nonpublic Agency NPS (Special Education Program)— Nonpublic School NSF — National Science Foundation 215 EXHIBIT C - 262 QOASDHI- Old Age, Survivors’, Disability and Health Insurance (Social Security) OPEB ~ Other Post-Employment Benefits I s 1 — The First Principal Apportionment(for attendance accountingandState allocation purposes) P2 — The Second Principal Apportionment (for attendance accounting and State allocation purposes) R - Peer Assistance and Revieway > Is — Pending Distribution PERS~ Public Employees’ Retirement System PLBAO (T11G/StudentIntegration Program) — Primarily Latino, Black, Asian and Other Non-Anglo. PI - Program Improvement PL - Public Law. Applies to federal legislation (e.g., Public Law 94-142 would be abbreviated as PL 94-142) PPF ~ Per Pupil Funding PSP (T11G/Student Integration Program)— Priority Staffing Program PWT (TIIG/Student Integration Program) — Permits With Transportation PYA- Prior Year Adjustment QEIA — Quality Education Investment Act QZAB— Qualified Zone Academy Bonds RAB- Reserve for Anticipated Balance RIF- Reduction in force ROC/P - Regional Occupational Centers/Programs ROC/SC — Regional Occupational Centers/Skills Centers RRGM -~ Routine Repair and General Maintenance RSP (Special Education Program) — Resource Specialist Program SACS— Standardized Account Code Structure SARB~ School Attendance Review Board SARC- School Accountability Report Card SB - Senate Bill. Applies to State legislation (e.g., Senate Bill 602 would be abbreviated SB 602) SBE - State Board of Education SCA - Senate Constitutional Amendment SDC (Special Education Program)~ Special Day Class SELPA - Special Education Local Plan Area 216 EXHIBITC - 263 SFP (or SFEP)— Specially Funded Programs (or Specially Funded Educational Programs). Now referred to as Restricted Programs. SESF — State Fiscal Stabilization Fund SI — School Improvement Program SRLDP(TIIG/Student Integration Program) — School Readiness Language Development Program STAR - Standardized Testing and Reporting STRS - State Teachers’ Retirement System TAP (or TAAP)— Teachers As A Priority TING — Targeted Instructional Improvement Grant TRANS - Tax and Revenue Anticipation Notes TUPE — Tobacco Use Prevention Education UCTP (THG/Student Integration Program) — Urban Classroom Teacher Program WIA - Workforce Investment Act YRS- Year-Round Schools 217 EXHIBIT C - 264 PROOF OF SERVICE I am employed in the County of San Francisco, State of California. I am overthe age of 18 years and nota party to this action. My business address is Latham & Watkins LLP, 505 Montgomery Street, Suite 2000, San Francisco, CA 94111-6538. I served the following documentdescribedas: MOTION CONDITIONALLY REQUESTING JUDICIAL NOTICE IN SUPPORT OF REPLY BRIEF ON THE MERITS; DECLARATION OF WINSTONP. STROMBERG AND EXHIBITS ATTACHED THERETO by serving a true copy of the above-described documentin the following manner: BY ELECTRONIC MAIL The above-described document wastransmitted via electronic mail to the following party(ies) on October 10, 2013: David M.Huff, Esq. (dhuff@ohslegal.com) ORBACH, HUFF & SUAREZ LLP 1901 Avenue ofthe Stars, Suite 575 Los Angeles, CA 90067 BY U.S. MAIL I am familiar with the office practice of Latham & Watkins LLP for collecting and processing documents for mailing with the United States Postal Service. Underthat practice, documents are deposited with the Latham & Watkins LLP personnelresponsible for depositing documents with the United States Postal Service; such documentsare delivered to the United States Postal Service onthat samedayin the ordinary course of business, with postage thereon fully prepaid. I deposited in Latham & Watkins LLP’s interoffice mail a sealed envelope or package containing the above-described document and addressed asset forth below in accordancewith theoffice practice of Latham & Watkins LLP for collecting and processing documents for mailing with the United States Postal Service on October10, 2013: David M.Huff, Esq. David R. Holmquist, Esq. Steven Graff Levine, Esq. Mark Fall, Esq. MarleyS.Fox, Esq. Nathan A.Reierson, Esq. Joanna Braynin, Esq. Office of General Counsel ORBACH, HUFF & SUAREZ LLP LOS ANGELESUNIFIED SCHOOL DISTRICT 1901 Avenueofthe Stars, Suite 575 333 South Beaudry Avenue, 23rd Floor Los Angeles, CA 90067 Los Angeles, CA 90017 Attorneys for Appellants Attorneys for Appellants Clerk/Executive Officer of the Court Clerk of the Court Court of Appeal of the State of California Honorable Terry A. Green - Department 14 Second Appellate District, Division Five Superior Court of the State of California 300 South Spring Street, 2"¢ Floor County of Los Angeles Los Angeles, CA 90013 111i North Hill Street Los Angeles, CA 90012 I declare that I am employed in the office of a memberofthe Bar of, or permitted to practice before, this Court at whosedirection the service was made anddeclare underpenalty of perjury underthe lawsofthe State of California that the foregoingis true and correct. Executed on October 10, 2013, at San Francisco, California. — Elizabeth AlvarezD
