The summary is as follows: 1) The school district faces a budget shortfall of $2-3 billion without cuts for the upcoming fiscal year. 2) Additional funding from the state has slightly reduced the shortfall but it remains over $3 billion. 3) New revenue sources have provided some additional funding, including a room tax initiative and extension of certain taxes, but billions more in cuts are still needed. 4) Recommended cuts totaling $407 million were proposed, including consolidating school schedules, freezing salaries, increasing class sizes, and cutting 1,834 positions.

1. 2012 FY Budget Update June 7, 2011

2. Shortfall With No Cuts As of Final Budget Adoption billions Shortfall 2

3. Shortfall With No Cuts After State Budget Adoption billions Shortfall 3

5. But $44lessthan originally appropriated by the legislature for the 2010-2011 school yearCompared to the estimates used for the 2011-2012 Final Budget, CCSD is estimated to receive $383 moreper student than includedin the Governor’s original budget 4

7. $20 million per year ($40 million over the biennium) from CCSD’s room tax and real property transfer tax revenues

8. Taxes that were scheduled to sunset on June 30, 2011, were extended for another two years5

9. What was Recommended? ($ millions) Consolidate school bell times $ 10.0 Pass along ½ cost of PERS increase 14.5 Administrative department budgets (cut 20%) 48.7 School textbook/supply budgets (cut 50%) 24.8 Spec. Ed. Facilitators, ELL Facilitators,ECSs, Literacy Spec. (cut 25%) 15.4 Salary steps and ed. increments (freeze) 39.9 Health ins.-employees assume part (20%) 38.7 Furlough Days 73.4 Staff counselors & sch. support staff at 97% 2.1 Increase class size (by 3 students) 70.8 To Be Determined 69.1 Total $ 407.4 1,834 positions cut 6

10. What does it look like Now? Consolidate bell times ½ cost of PERS rate increase Admin. department budgets (20%) School textbooks & supplies Specialists & facilitators Salary steps & increments Additional Revenue Health insurance premiums Furlough days Counselor/school support staff @ 97% Increase class sizes TBD ($ millions) Note: Items in yellow require employee concessions. 7

11. What is next? Present Amended Budget June 23rd Regular Board Meeting 8