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Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 1 ol 9

ln order Lo puL Lhe currenL negoLlaLlons concernlng salary cuLs and benellL caps lnLo conLexL, AÞC has looked aL
Lhe revenue sources slnce Lhe 2008-2009 recesslon began. 1he LoLal annual revenue (cumulaLlve ol all sources)
has lallen by 21° lrom $17.9 mllllon Lo $14.0 mllllon pro[ecLed lor Lhls school year, 2013-2014. 1he decllne
sLems lrom reduced per pupll sLudenL lundlng lrom Lhe sLaLe coupled wlLh Lhe decllne ln Lhe number ol
sLudenLs ln Au–u. 1hese are compoundlng ellecLs!

2008-09 2009-10 2010-11 2011-12 2012-13
2013-2014
Imposed
Projected
8eglnlng 8alance $1,978,2“9 $2,387,4“2 $2,02”,31“ $2,0“3,848 $1,“0”,“44 $1,“0”,4”4

8evenue’lmlL (old process) $11,340,709 $9,“87,302 $10,01“,”79 $9,97”,“”1 $9,889,17” $”0,000
’ocal ConLrol lundlng lormula (new process) $0 $0 $0 $0 $0 $11,204,“08
CLher –LaLe $2,“21,818 $2,3”8,171 $2,370,8”7 $2,1”4,”39 $2,11“,294 $28“,742
lederal $1,”0”,339 $1,294,000 $1,470,829 $7“8,711 $7“”,9”2 $”72,924
CLher ’ocal $788,2“0 $703,198 $708,24” $“03,0““ $48“,41” $”1”,784
–peclal Ld $1,249,311 $1,113,7”0 $1,192,4”3 $1,344,3”1 $977,””7 $830,000
Common Core (1 Llme) $0 $0 $0 $0 $0 $372,”00
!MM– ConsLrucLlon –eLLlemenL - 1ransler $400,000 $1,000,000 $0 $0 $0 $0
1oLal 8evenue $17,90”,427 $1”,0””,431 $1“,7“8,084 $14,747,327 $14,224,“1“ $14,042,““8

CerLlllcaLed –alarles $8,749,“7“ $8,290,38” $7,788,8”8 $7,2“9,229 $”,8”3,”2“ $”,919,73”
Classllled –alarles $2,949,7”8 $2,807,823 $2,“7”,97“ $2,“20,”87 $2,478,00” $2,““8,012
Lmployee 8enellLs $3,391,”97 $3,383,9“0 $3,399,04“ $3,298,3”9 $3,144,“14 $2,784,014
–upplles $”9”,412 $483,171 $“73,041 $“44,0”0 $402,7“2 $478,383
CperaLlng $1,“08,907 $1,333,207 $1,2””,441 $1,239,22” $1,213,089 $1,140,119
CaplLal $“97 $0 $0 $307,279 $0 $0
uebL –ervlce $200,278 $129,031 $12”,181 $12“,781 $11“,“28 $49“,9“0
Common Core (1 Llme) $0 $0 $0 $0 $0 $289,770
1oLal Lxpenses $17,497,234 $1”,427,“”8 $1“,730,““1 $1“,294,”31 $14,217,“14 $14,””“,984

CLher 1ranslers $0 $0 $0 $0 $7,081 $0

Lndlng 8eserve 8alance - 8esLrlcLed $”00,000 $0 $0 $0 $0 $82,830
Lndlng 8eserve 8alance - unresLrlcLed $1,787,4“2 $2,02”,31“ $2,0“3,848 $1,“0”,“44 $1,“0”,4”4 $800,208

1. 8evenue’lmlL - 2013-2014͗ 8esldual –peclal LducaLlon ÞroperLy 1ax revenues
2. Lndlng 8eserve 8alance ʹ 8esLrlcLed͗ 8eserves conLalnlng 2009 lederal –Llmulus lunds ol $”00,000 and unspenL 2013
Common Core lunds are resLrlcLed Lo speclllc program purposes͖ and baslcally are noL avallable lor general payroll-
relaLed spendlng.
3. Lndlng 8eserve 8alance ʹ unresLrlcLed͗ All porLlons can be used ln subseƋuenL years lor payroll-relaLed spendlng.
4. 1he reducLlons ln salarles and benellLs ls a comblned luncLlon ol cuLs, resLoraLlons, caps and Lhe lay-oll ol employees.
“. CperaLlng expenses lncludes malnLenance, uLlllLles, eLc. neL ol dlrecLly employed classllled employees.
”. CaplLal expenses rellecL Lhe purchase ol new eƋulpmenL.
7. uebL –ervlce ls Lhe prlnclpal and lnLeresL cosL ol paylng-down loans.

8evenues are noLed lor a number ol one-Llme, non-recurrlng, exLra-ordlnary lncremenLs as lollows͗

2008-2009͗ $400,000 was Lranslerred lrom Lhe !MM– consLrucLlon seLLlemenL Lo help lund operaLlng
expenses lncludlng Lhe cosLs ol wages and benellLs͖ and $”00,000 lrom Lhe lederal –Llmulus program was
Laken lnLo resLrlcLed 8eserves.
Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 2 ol 9

2009-2010͗ $1,000,000 was Lranslerred lrom Lhe !MM– consLrucLlon seLLlemenL Lo help lund operaLlng
expenses lncludlng Lhe cosLs ol wages and benellLs.
2013-2014͗ $372,”00 was recelved lrom Lhe –LaLe as a oneLlme granL Lo lund Lhe lmplemenLaLlon ol Lhe
Common Core mandaLe.

noLe͗ 1he prevlous Calllornla sLaLe ͞8evenue’lmlL͟ sysLem ol dlsLrlbuLlng lundlng Lo schools on Lhe basls ol eƋual
amounLs per sLudenL across all school dlsLrlcLs was replaced ln 2013 by Lhe new ͞’ocal ConLrol lundlng lormula͟.
’Cll also lncorporaLes and consolldaLes mosL ol pasL speclal, separaLe –LaLe lundlng elemenLs. ’Cll ls also
lnLended Lo prlorlLlnje any new, lncremenLal, addlLlonal sLaLe (beyond a common sLaLe-wlde base level per sLudenL)
Lo school dlsLrlcLs havlng dlllerenL eLhnlc, language and lamlly economlc demographlcs Lhan Alplne.

1he above charL clearly demonsLraLes lour lmporLanL lacLs abouL revenue loss͗
l. 1oLal sLaLe lundlng Lo Au–u, wheLher Lhe prevlous ͞8evenue’lmlL plus CLher –LaLe͟ lundlng or wheLher
Lhe new ͞’Cll plus CLher –LaLe͟ lundlng, has reduced agaln ln 2013-2014. 1haL ls due Lo Lhe conLlnued
decllne ln sLudenL aLLendance. Student decline more than offsets the gains provided by LCFF ln Lerms
ol sLaLe lundlng per sLudenL - a reducLlon ol $2.3 mllllon slnce 2008-09͖

ll. lederal lundlng lncreased aL Lhe Llme ol Lhe recesslon͛s beglnnlng ln 2008-09 buL has sharply lallen back
Lo hlsLorlcͬLradlLlonal levels ʹ a reducLlon ol $0.9 mllllon slnce 2008-09͖

Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 3 ol 9


lll. 1he $1,400,000 boosL ln revenue across 2008-09 and 2009-10 provlded by Lhe neL proceeds ol Lhe
seLLlemenL arlslng ouL ol Lhe consLrucLlon dellclencles ol !oan MacCueen Mlddle –chool was spenL ln
supporL ol operaLlons, parLlcularly lor payroll-relaLed expenses such as wages and benellLs ʹ a
comparaLlve loss ol $1.4 mllllon slnce 2008-09 and 2009-10.

lv. 1he nearly $0.4 mllllon speclal lundlng ln 2013-14 Lo lmplemenL Common Core ls non-recurrlng (and ls
pro[ecLed Lo be 7“° spenL by year end).
noL shown as a revenue source on Lhe 8evenue charL ls Lhe $”00,000 ln lederal –Llmulus lunds recelved ln !une
2009. 1hose lunds were Laken lnLo 8esLrlcLed Lndlng 8alance 8eserves - Lhe dlsLrlcL͛s ͞ralny-day͟ lund. 1hey
were spenL lrom Lhe 8eserve AccounL on operaLlonal expenses, lncludlng Lhose relaLlng Lo payroll cosLs.
1he dlsLrlcL appears Lo have dlverLed all posslble sources ol revenues and cash reserves, lncludlng unexpecLed
sources, Lo keeplng Lhe schools open and luncLlonlng, whlle meeLlng operaLlng and payroll expenses.
Powever ---
The Bubbles have popped!
–lnce Lhe recesslon, Lhe spendlng ln Au–u, llke oLher dlsLrlcLs, has been buoyed by a sLrlng ol paLchwork,
Lemporary lundlng. lor Au–u, Lhose lundlng sources have ceased and Lhe rebound ln –LaLe revenue sources ls
noL growlng lasL enough Lo overcome Lhe loss ol revenues lrom decllnlng sLudenL enrollmenL and lncreaslng
sLrucLural cosLs.
Bubble 1- Construction Settlement
When Lhe recesslon lnlLlally hlL Au–u, Lhe prevalllng LhoughL appeared Lo be LhaL lundlng would bounce back
raLher Ƌulckly, as lL had hlsLorlcally done durlng pasL perlods ol economlc downLurn. laced wlLh budgeL cuLs Lo
Leachers and sLall, Lhe ulsLrlcL͛s reacLlon was Lo draw on $1.4 mllllon LhaL was recelved neL ol expenses lrom a
consLrucLlon lawsulL LhaL arose lrom Lhe bulldlng ol !oan MacCueen Mlddle –chool. When LhaL $1.4 mllllon was
depleLed over Lwo years and Lhe llnanclal condlLlons aL Lhe –LaLe level deLerloraLed lurLher, Lhe dellclL ln Lhe
lollowlng year became glarlngly apparenL. 1he ͞bandald͟ was gone, exposlng a $1.“ mllllon annual dellclL - $1
mllllon LhaL had been masked and $.“ mllllon lrom lurLher deLerloraLed condlLlons. 1hls bubble ls rellecLed as
2008-09 and 2009-10 revenue ln Lhe above charLs.
Bubble 2 –Federal Stimulus
1he severlLy ol Lhe naLlon-wlde recesslon was acknowledged aL Lhe lederal level, and ald was pumped lnLo
schools all over Lhe u–. ’ooklng aL Lhe lederal lundlng lor Alplne, lL was $1.” mllllon, $1.29 mllllon, and $1.47
mllllon, lrom Lhe perlod 2008-09 Lo 2010-2011. 1hen lL dropped slgnlllcanLly Lo $.7” mllllon, $.7” mllllon, and
$.”7 mllllon consecuLlvely - more ln llne wlLh Lhe expecLed and hlsLorlcal lundlng levels. Agaln, lor Lhe perlod
2008-09 Lo 2010-11, Lhe composlLe revenues were buoylng an unsusLalnable cosL sLrucLure.

Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 4 ol 9

Bubble 3- Common Core
1hls llscal year, Lhe –LaLe granLed Au–u $372,”00 ol ͞one-Llme͟ lundlng lor Lhe lmplemenLaLlon ol ͞Common
Core͟. 1hese lunds musL be spenL wlLhln 2 years and Lhey are Lo be expended on prolesslonal developmenL and
Lralnlng, and on maLerlals and Lechnology relaLed Lo lmplemenLaLlon ol Common Core. 1hls ls one-Llme lundlng
and musL be excluded lrom Lhe ongolng revenue plcLure. 1he spendlng on compuLers and vldeo dlsplays LhaL
are arrlvlng aL Lhe schools aL a Llme ol operaLlng cuLs ls unlorLunaLe and poses Lhe poLenLlal Lo lurLher erode
morale.

As a conseƋuence ol Lhese bursL bubbles, cash avallable Lo Lhe dlsLrlcL lor lLs operaLlons remalns Lenuous even
wlLh addlLlonal per-sLudenL lundlng sLarLlng Lo llow lrom Lhe sLaLe. 1haL ls because a conLlnulng sllde ln sLudenL
aLLendance ollseLs any revenue galns. 1he lollowlng charL shows Lhe pro[ecLed gap beLween 2013-2014
revenues and expenses alLer Lhe dlsLrlcL lmposed Lhe salary cuL ol 7.“88° and a cap Lo benellL cosLs ol $8,000
per year on all cerLllled and salarles employees.

Lven alLer Lhe salary cuL and benellLs cap lmposed on Leachers ln !anuary 2014, and lmposed on all non-unlon
employees lasL !uly 2013, Lhere ls a neL $4“0,000 [ump ln pro[ecLed 2013-2014 expenses. 1haL [ump resulLs
lrom Lhe sLaLe-mandaLed expenses Lo lmplemenL Lhe new ͞Common Core͟ currlculum (whlch cosL Lhe sLaLe dld
lund) and ln parL lrom Lhe llrsL prlnclpal paymenL ol 1“ scheduled paymenLs agalnsL Lhe 2010 bonds lssued lor
energy savlngs pro[ecLs, dlsLrlcL-wlde wlreless Lechnology upgrades, and lor exLernal wall sLucco and palnLlng
repalrs aL !MM–.
Conslderlng LhaL LoLal lundlng Lo Lhe dlsLrlcL ls lalllng agaln ln 2013-2014, and expenses are sLlll rlslng, Lhe
dlsLrlcL͛s reserve balance ʹ Lhe dlsLrlcL͛s ralny-day lund whlch had been decllnlng across pasL years ʹ ls pro[ecLed
Lo lall agaln. 1hls ls analynjed ln ͞8ubble 4͟ below.
$13,000,000
$13,“00,000
$14,000,000
$14,“00,000
$1“,000,000
$1“,“00,000
$1”,000,000
$1”,“00,000
$17,000,000
$17,“00,000
$18,000,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014
lmposed
Þro[ecLed
Revenue Versus Expense
5-Year Summary
1oLal 8evenue 1oLal Lxpenses
Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 5 ol 9

8ased on Lhe pro[ecLed lncrease ln expenses LogeLher wlLh Lhe decllne ln reserves and coupled wlLh conLlnulng
decllnlng sLudenL enrollmenL whlch ls drlvlng down overall revenues Lo Lhe dlsLrlcL, Lhe ouLlook ls LhaL Lhe
dlsLrlcL could concelvably sLlll become lnsolvenL ln subseƋuenL years absenL slgnlllcanL lundlng lncreases by Lhe
sLaLe.
Bubble 4- Reserve Draw Down
1he 8eserve 8alance accounL ls essenLlally Lhe ͞savlngs͟ accounL lor Lhe dlsLrlcL. lL ls used lor large caplLal
expendlLures and as a ralny day lund ln Lhe evenL ol a llscal crlsls. ln 2008, Lhe reserve was $2.39 mllllon or
13.”° ol Lhe $17.“ mllllon expense budgeL. 1he reserve as a percenLage ol Lhe budgeL has llucLuaLed slnce LhaL
Llme as Lhe amounL on lunds ln Lhe reserve have gone up and down. 8uL now, Lhe balance ls expecLed Lo lall Lo
$0.88 mllllon (resLrlcLed and unresLrlcLed) or ”.0° aL Lhe end ol Lhe currenL school year. 1haL ls Lhe lowesL
8eserve 8alance slnce Lhe recesslon began ln 2008-2009. uslng a ͞percenLage͟ as a measure Lends Lo mask LhaL
Lhe avallable cash acLually ln Lhe reserve. 1he dlsLrlcL has been ln a dellclL spendlng mode lor several years͖
eaLlng-away aL lLs savlngs accounL lor ralny days.
1he Au–u reserve draw down vlslbly acceleraLed ln !uly, 2013 (!uly marks Lhe sLarL ol Lhe llscal year). –everal
lacLors have allecLed Lhe acceleraLed raLe͗
1) CerLlllcaLed and Classllled labor conLracLs explred. WlLhouL new conLracLs, sLall were enLlLled Lo a
nearly “° resLoraLlon ol salary LhaL was conceded ln 2009. uue Lo Lhe resLoraLlon, LoLal salary and
benellL cosLs were pro[ecLed Lo lncrease over $”00,000 durlng 2013. 1o sLem Lhls, Lhe dlsLrlcL lmposed
salary cuLs and benellL caps LhroughouL 2013-2014.

2) 1he llrsL paymenL ol prlnclpal ol 1“ lnLenLlonally delerred lnsLallmenLs agalnsL Lhe !uly 2010
consLrucLlon CerLlllcaLes ol ÞarLlclpaLlon, ͞CCÞs͟, program lor lnvesLmenLs ln energy savlngs pro[ecLs
(solar power, heaLlng Θ alr condlLlonlng, and llghLlng), lor Lechnology wlreless upgrades, and lor Lhe
repalrs aL !oan MacCueen Mlddle –chool, llnally came due͗ $330,000. AÞC ls preparlng an analysls ol
Lhe cosL and benellLs ol Lhe 2012 $4.47 mllllon Cualllled ConsLrucLlon 8ond Þrogram, Lhe ͞CCÞ–͟. 1haL
analysls wlll lnclude commenL ol Lhe 2012 dlsLrlcL bond proposlLlon LhaL lalled Lo geL voLer approval ln
Lhe november elecLlons.

3) 1hls drop ol approxlmaLely 170 sLudenLs LhaL eƋuaLes Lo a loss ol abouL $8“0,000 per year ln sLaLe
lundlng ls greaLer Lhan Lhe pro[ecLed neL lncrease ln per pupll lundlng lrom lmproved school lundlng
condlLlons aL Lhe Calllornla –LaLe level. 1he amounL ol sLaLe lundlng lor schools ln a parLlcular year ls
deLermlned ln parL by Lhe average aLLendance across an exLended porLlon ol Lhe prevlous year.
Alplne͛s sLudenL aLLendance decreased ln 2013ͬ2014 versus 2012ͬ2013. 2013ͬ2014 average aLLendance
seLs Lhe base ol sLaLe lundlng lor Lhe 2014ͬ201“ year͖ meanlng LhaL Alplne may well recelve reduced
lundlng agaln nexL year. 1he acLual lmpacLs on Alplne can͛L be clearly lorecasL unLll Lhls !une ʹ alLer Lhe
’eglslaLure approves Lhe llnal school lundlng budgeL lor 2014ͬ201“ school year. Whlle Lhe Covernor
Lyplcally lssues a sLaLe budgeL ͞8evlse͟ ln May, whlch may have a beLLer or lessor economlc ouLlook,
unLll Lhe ’eglslaLure approves Lhe nexL year͛s budgeL, maklng assumpLlons elLher way abouL school
llndlng ls noL prudenL.
Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 6 ol 9


2008-09 does noL lnclude $”00,000 ln resLrlcLed lederal –Llmulus lunds recelved !une 2“Lh.

2013-14 pro[ecLed $800,208 unresLrlcLed reserves are based upon Lhe !an 2014 lmposed Leacher salary cuL Θ benellLs cap
(whlch are sLlll under conLracL negoLlaLlon). 1he $82,830 pro[ecLed resLrlcLed Common Core reserve ls noL lncluded.

lL ls crlLlcal Lo undersLand LhaL Lhe –LaLe mlnlmum lor a reserve ls 3° ol expenses. 1haL eƋuaLes Lo abouL
$440,000 currenLly lor Au–u. Clven LhaL Lhe delerred malnLenance has accumulaLed over Lhe pasL “ years (now
sLandlng aL abouL $1,400,000 on Lhe basls ol lnlormaLlon lrom Lhe dlsLrlcL͛s lalled 2012 bond proposal elecLlon),
lL ls unclear how Au–u can operaLe ll Lhe reserve ls drawn down lrom Lhe $800,208 pro[ecLed unresLrlcLed Lo
Lhe sLaLe-permlLLed mlnlmum.
MalnLenance budgeLs have been sysLemaLlcally slashed and laclllLles are showlng slgns ol dlsrepalr. CorrecLlng
delerred malnLenance hypoLheLlcally over Lhe nexL llve years lmplles a cash cosL ol abouL $280,000 each year.
CperaLlng aL a 3° level ol reserve ol $440,000 lmplles LhaL caplLal expendlLuresͬrepalrs mlghL have Lo be Laken
lrom Lhe operaLlonal budgeL ʹ Lhe money supporLlng classroom lnsLrucLlon (and avallable lor employee salarles
and benellLs). ln lleu ol an approprlaLe reserve balance, more Lhan Lhe sLaLe-mandaLed 3° mlnlmum, needed
caplLal expendlLuresͬrepalrs would have Lo be pald ouL ol Lhe dlsLrlcL͛s general lund Lhereby reduclng money
avallable Lo resLore salarles and benellLs golng lorward.
unllke Lhe prlvaLe secLor, school dlsLrlcLs do noL carry a caplLal accounL on a balance sheeL. 1here ls no
depreclaLlon schedule ol Lhe asseLs LhaL provlde managemenL wlLh Lhe Lools Lo reporL an accuraLe plcLure ol Lhe
decay ol lLs physlcal planL and eƋulpmenL and Lo prepare lor evenLual replacemenL (by seLLlng money aslde). lL
ls assumed LhaL Lhe resLoraLlon ol Lhe caplLal asseLs wlll be pald lor lrom Lhe reserve accounL and LhaL a small
porLlon ol Lhe operaLlng budgeL wlll be seL aslde lnLo Lhe reserve Lo pay lor replacemenL ol decaylng
lnlrasLrucLure, as needed.
1o lllusLraLe Lhls polnL, Lhe lollowlng slmplllled example ls presenLed͗
$”00,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,”00,000
$1,800,000
$2,000,000
$2,200,000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014
lmposed
Þro[ecLed
AUSD Reserve Balance
Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 7 ol 9

Alplne LlemenLary re-paves Lhe parklng loL aL cosL ol $300,000. 1he expecLed llle ol Lhe pavlng ls 1“ years. ll
Lhe asseL decays aL a raLe ol $20,000 per year over Lhe 1“-year llle, buL Lhe expense ls noL recognlnjed, Lhen how
does Lhe Au–u pay lor Lhe pavlng lmprovemenL ln Lhe luLure͍ 1hls ls a slmplllled example, buL lL should glve Lhe
reader a sense ol Lhe enormlLy, complexlLy, and cosL Lo malnLaln laclllLles, lncludlng compuLer Lechnology whlch
has a uselul llle ol only a lew years.
uaLa lrom Lhe naLlonal CenLer lor LducaLlon –LaLlsLlcs lndlcaLes LhaL 1“ years ago, belore school lundlng became
a crlsls nearly naLlon-wlde, a caplLal ouLlay plus debL paymenL ol up abouL ”° ol Lhe overall expense budgeL
would noL have been unusual aL Lhe Llme. Au–u͛s currenL value ls abouL 2°, an especlally low raLe͖ presumably
Lhe conseƋuence ol a declslon Lo prlorlLlnje sLall over physlcal laclllLles.
’lke many school dlsLrlcLs, Au–u has been under-spendlng on malnLenance and replacemenL needs Lhrough Lhe
sLaLe lundlng crlsls aL besL by a lacLor ol hall. 1he decllnlng physlcal sLaLe ol Lhe dlsLrlcL͛s school lnlrasLrucLure
shows lL. MalnLenance needs worsen and Lhelr repalr cosLs compound ll noL evenLually addressed.
Summary
WlLhouL a change ol spendlng, lncludlng Lhe salary cuLs and benellL caps lmposed LhroughouL 2013-2014, Au–u
mlghL have run ouL ol operaLlng cash ln Lhe 2014-201“ school year. 1haL poLenLlal lnsolvency would be vlewed
by Lhe CounLy and –LaLe 8oards ol LducaLlon as a ͞bankrupLcy͟ and would lnvlLe Lhe –LaLe͛s Lakeover ol Lhe
dlsLrlcL. AÞC ls preparlng an exhlblL on Lhe conseƋuences ol such pasL Lakeovers. 1hey have noL been pleasanL
lor any sLakeholders (lncludlng employees), and some have noL achleved beLLer llnanclal resulLs!
lL ls lmporLanL Lo noLe LhaL when Lhe –LaLe Lakes over a dlsLrlcL, lL makes a loan Lo Lhe dlsLrlcL because Lhe
dlsLrlcL ls unable Lo meeL lLs own llnanclal obllgaLlons. As a resulL, Lhe dlsLrlcL has an even greaLer expense Lo
pay back.
1he lmposed salary cuLs and benellL cap now ln place resulL ln reduclng Lhe 2013-2014 cosLs ol wages and
benellLs by abouL 1.8°. 1haL ls noL a wlde margln.
1he lollowlng charL shows Lhe dlsLrlcL͛s hlsLorlcal and pro[ecLed spendlng by expense caLegory.
Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 8 ol 9



1he school lundlng crlsls slnce 2008-2009 has had sLaggerlng lmpacLs. noL wlLhouL occaslons ol Lenslon, Lhe
dlsLrlcL AdmlnlsLraLlon, Lhe 1eachers, Lhe 8oard ol 1rusLees and all oLher employees have sacrlllced whlle
conLlnulng Lo preserve Lhe ƋuallLy ol educaLlon ln Alplne. 1haL ls commendable!
Whlle Lhere are some slgns ol easlng ln Lhe crlsls ol sLaLe lundlng, noLably by Lhe Covernor͛s and ’eglslaLure͛s
avowed commlLmenL Lo lncrease lundlng and lmprove dellvery sysLems Lo enable greaLer local llexlblllLy and
spendlng conLrol, Lhere are many uncerLalnLles remalnlng.
It pr udengat lor all sLakeholders Lo plan carelully͖ Lo avold over-reachlng on Lhe basls ol unsupporLed
expecLaLlons. ConLlngenL plannlng and agreemenL ln conLracLual negoLlaLlons ls warranLed. And ln Lhe budgeL
plannlng golng lorward, conslderaLlon musL be glven Lo resLorlng lundlng ol Lhe expanslonͬresLoraLlon ol
dlsLlncLlve Leachlng programs LhaL draw new sLudenLs, whlle allowlng Lhe adeƋuaLe malnLenanceͬrepalr ol
decaylng bulldlngs, campus grounds and aglng eƋulpmenL Lo proceed.

Alpine Parents Coalition - Exhibit

AUSD Historical Revenue - Comparison

Þage 9 ol 9

The real answer to sustainability is not in a continuation of more spending cuts.
1he Covernor ls proposlng subsLanLlally lncreaslng sLaLe lundlng lrom presenL levels͖ proposlng a sysLem LhaL
wlll close Lhe gap over Lhe nexL 8 years ln losL lundlng slnce Lhe sLarL ol Lhe sLaLe͛s llscal crlsls ln 2008 unLll now.
AL Lhe same Llme, Lhe sLaLe ’eglslaLure has passed an enLlrely new sysLem ol sLaLe school lundlng allocaLlon
Lermed ͞’ocal ConLrol lundlng lormula͟. Pow Lhese Lwo changes wlll acLually lmpacL Alplne lor Lhe 2014-201“
school year won͛L be clearly known unLll Lhe sLaLe ’eglslaLure releases lLs approved 2014-201“ school lundlng
budgeL (ln laLe !une ol 2014).
Alplne wlll benellL lrom ’Cll. lL ls expecLed LhaL Lhe base lundlng per sLudenL wlll lncrease. unlorLunaLely,
Au–u͛s sLudenL aLLendance lell agaln ln 2013 and LhaL wlll conLrlbuLe Lo a posslble reducLlon ln Lhe base sLaLe
lundlng agaln nexL year. Moreover, a prlmary purpose ol ’Cll ls Lo lundamenLally dlrecL lncremenLal sLaLe
lundlng LhaL may be avallable Lo school dlsLrlcLs ln communlLles where eLhnlc, language and lamlly economlc
clrcumsLances are dlllerenL Lhan Alplne͛s.
ln and ol lLsell, ’Cll wlll help Alplne͛s schools, buL wlll noL be a panacea lor Alplne͛s budgeL woes. And Alplne͛s
decllnlng aLLendance musL be sLopped and reversed.
The solution for Alpine is an aggressive, positive campaign to recapture lost clients (students and parents).
1he challenge lor Alplne wlll be Lo dgmgdrg tog ag’ltpmg ŵgrrl’pa’ LhaL has domlnaLed Lhe publlc dlscourse
Lhese pasL several monLhs͖ and Lo dgrtŽdg tog nprtdpĐt͛r tdlnptpŽalů uŽrptpmg pŵl’g Lo lLs resldenLs and Lhe
resldenLs ol surroundlng communlLles.
AUSD does achieve truly great teaching, and all stakeholders need to shout out the positives of attending
Alpine’s schools.