Presented to the Scool Board on December 14, 2011.

1. Devin Vodicka, EdD
December 14, 2011
FIRST INTERIM

2. Background
 First Interim report prepared in addition to
unaudited actuals and annual budget.
 Represents district financial condition
through October 31, 2011
 Reviewed by Governing Board, County
Superintendent, Superintendent of Public
Instruction, and State Controller
 Purpose is to ensure awareness regarding
current and future financial obligations

3. Current Information
 District is able to meet projected financial
obligations in the current year
 Expenditure reductions are necessary in order
to meet obligations in subsequent years
 Determinations are made based on best
known information and projections from
trusted sources

4. Assumptions and “Trigger”
Reductions
 Complete list of assumptions provided under
separate cover
 Per AB 114, no midyear “trigger” reductions
are included in current budget projections
 Department of Finance reports on December
15
 Governor’s Proposal for 2012-13 in January

5. Budget Process
 June 8, 2011: Budget Assumptions
 June 22, 2011: Annual Budget and
Expenditure Reduction Resolution
 July 27: 45 Day Budget Revisions
 September 14, 2011: Unaudited Actuals
 October 12, 2011: Expenditure Priorities and
Class-Size Waiver
 November 9, 2011: Expenditure Reductions

6. 2011-2012 Overview

7. 2012-2013 Overview

8. Projected Expenditure
Comparison
$45,000,000.00
$40,000,000.00
$35,000,000.00
$30,000,000.00
$25,000,000.00
$20,000,000.00
$15,000,000.00
$10,000,000.00
$5,000,000.00
$- Services/
Certificated Classified Employee Books &
Other Oper.
Salaries Salaries Benefits Supplies
Expenditures
2011-2012 $39,815,854.0 $11,239,941.0 $17,577,495.0 $2,976,306.00 $10,895,969.0
2012-2013 $39,146,000.0 $10,981,365.0 $18,144,774.0 $2,305,918.00 $10,684,208.0

9. Necessary Expenditure
Reductions
Current Projections Financial Balance 2013
$84,000,000.00 $84,000,000.00
$82,000,000.00 $82,000,000.00
$80,000,000.00 $80,000,000.00
$78,000,000.00 $78,000,000.00
Axis Title
Axis Title
$76,000,000.00 $76,000,000.00
$74,000,000.00 $74,000,000.00
$72,000,000.00 $72,000,000.00
$70,000,000.00 $70,000,000.00
$68,000,000.00 $68,000,000.00
$66,000,000.00 $66,000,000.00
2011-2012 2012-2013 2011-2012 2012-2013
Total Revenue $73,159,292.00 $71,744,955.00 Total Revenue $73,159,292.00 $71,744,955.00
Total Expenses $83,063,700.00 $81,792,443.00 Total Expenses $83,063,700.00 $73,961,468.00

10. Deficit Spending
 Projected expenditures in 2011-12 now
exceed projected revenue by $9,904,408
 Significant reserve from prior year is being
used to fulfill current year obligations
 Deficit spending trend is unsustainable

11. Good News, Bad News
 Good News:
 As a result of expenditure reductions and fiscal
prudence, the projected deficit for 2012-2013 has
reduced from $11.3 million (June) to $7.8 million
 Bad News:
 Projected deficit for 2013-14 remains at $12.1
million due to combination of ongoing deficit
spending (which results in declining reserves),
projected increased expenses and projected
decreasing revenues

12. Financial Implications
 Combination of deficit spending and
projected reduction in reserves creates a
condition where we can not claim that we can
meet obligations in subsequent years.
 As a result, we are self-certifying the CUSD as
“qualified” in our submission to San Diego
County Office of Education

13. Recommendation
 It is respectfully recommended that the
Board of Trustees approve submission of the
interim financial report as of October 31,
2011, including “Qualified” certification