Aug 19, 2026 Special School Board

[1. CALL TO ORDER IN PUBLIC SESSION]

[00:00:12]

>> GOOD AFTERNOON AND WELCOME. THIS MEETING IS CALLED TO ORDER AT 4:28 P.M. CALL TO ORDER.

REQUESTS TO ADDRESS AGENDA ITEMS DR. SIMON WILL LEAD US IN THE

PLEDGE OF ALLEGIANCE. >> LET'S GO AHEAD AND BEGIN THE

[4. DISCUSSION ITEM]

PRESENTATION, DR. SIMON. >> THANK YOU, BOARD PRESIDENT GARZA AND TO OUR BOARD MEMBERS. TONIGHT WE HAVE MATT PHILIPS OF SCHOOL SERVICES OF CALIFORNIA WHO WILL PRESENT THE SCHOOL BUDGET PRESENTATION TO THE BOARD.

WELCOME TO MR. PHILIPS. >> ALL RIGHT.

I THINK I GOT -- THERE WE GO. GOOD EVENING, BOARD PRESIDENT AND FELLOW MEMBERS, SUPERINTENDENT AND MEMBERS OF CABINET. HORNQUISTED TO BE HERE.

EXCITED TO TALK ABOUT BUDGET ALTHOUGH I CANNOT PROMISE IT WILL BE AS EXCITING AS THE LAST TIME I WAS HERE.

I DON'T KNOW IF THE TRUSTEES RECALL.

I REMEMBER VIVIDLY WE HAD A BEETLE JUICE SIGHTING COME THROUGH THE BOARD MEETING. AL NOT SOMETHING YOU SEE EVERY DAY. I REMEMBER THE YOUNG GENTLEMAN FROM THE HIGH SCHOOL HAD THE JACKET ON AND THEN WE HAD BEETLE JEW HIMSELF WALK IN. THE SECOND MOST EXCITING TOPIC THOUGH HAS TO BE SCHOOL BUDGETS. SO HERE WE GO.

APPRECIATE DR. SIMON REACHING OUT.

DR. SMITH AS WELL SHARING WITH ME THE HOPES OF THIS EVENING WHICH IS TO REALLY UNDERSTAND SCHOOL DISTRICT BUDGETS.

WE'LL GET INTO SOME OF THE TERMINOLOGY.

CERTAINLY MY EXPECTATION TONIGHT IS NOT EVERYONE IS WALKING AWAY AS A SCHOOL DISTRICT BUDGET EXPERT BUT CERTAINLY HAS A STRONGER UNDERSTANDING OF SOME OF THE CONCEPTS RELATED TO SCHOOL BUDGETS AND SCHOOL FINANCE, BETTER UNDERSTANDING ABOUT HOW BUDGETS ARE DEVELOPED, AND ULTIMATELY A BETTER UNDERSTANDING OF HOW TO READ THE FORMS. AS A SCHOOL TRUSTEE I KIND OF BREAK IT DOWN INTO THREE DIFFERENT ROLES AS A TRUSTEE. WE TALK ABOUT FINANCE WE USE THE STOOL ANALOGY. THE FIRST IS ATTRACTING AND RETAINING THE VERY BEST EMPLOYEES THAT WE CAN.

SO THAT COMES TO BE WITH COMPENSATION, RIGHT.

EMPLOYING THE BEST COMPENSATION AND WORKING CONDITIONS WE POSSIBLY CAN. THE SECOND LEG WOULD BE ENSURING OUR STUDENTS EITHER MATRICULATE TOWN SECONDARY, THE WORK FORCE, BECOME CONTRIBUTING CITIZENS. WE DO THAT WITH THE BEST OPTIONS KNOWING ONE SIZE DOES NOT FIT ALL FOR ALL STUDENTS.

AND THE THIRD LEG WHICH IS REALLY Y WE'RE HERE TONIGHT IS THE FIDUCIARY RESPONSIBILITY. AND MANY TIMES THOSE THREE LEGS CAN HAVE INVERSE RELATIONSHIPS WITH EACH OTHER.

I WOULD SAY GENERALLY THE VOICE, THE PRESENCE AT A SCHOOL BOARD MEETING FOR THE BUDGET IS PROBABLY THE LOWEST OF THOSE THREE LEGS, BUT I WOULD SAY IT'S NOT ANY LESS IMPORTANT THAN THE OTHER TWO LEGS. WITHOUT THAT FINANCIAL STABILITY, IT'S VERY DIFFICULT TO HAVE CONSISTENCY WITH THOSE OTHER TWO LEGS. ALL RIGHT? I CERTAINLY INVITE QUESTIONS FROM THE BOARD AS WE GO ALONG.

I CAN STOP, GO BACKWARDS, SAVE THEM UNTIL THE END.

I'M FLEXIBLE SO HOWEVER THE BOARD ADDRESSES QUESTIONS, I'M OPEN TO THAT. ALL RIGHT? SO LITTLE BIT ABOUT MYSELF. I HAVE BEEN IN SCHOOL FINANCE FOR ABOUT 20 YEARS, AND THE LAST 12 YEARS I WORKED FOR SCHOOL SERVICES OF CALIFORNIA WHO I AM CURRENTLY WITH.

AND SCHOOL SERVICES OF CALIFORNIA HAS THE OPPORTUNITY TO WORK VERY CLOSELY WITH THE CALIFORNIA SCHOOL BOARDS ASSOCIATION WITH THE MASTERS AND GOVERNANCE PROGRAM.

THERE'S FIVE MODULES WITHIN THE MASTERS AND GOVERNANCE PROGRAM.

THE THIRD MODULE WITHIN THAT IS SCHOOL FINANCE.

IT'S THE ONLY MODULE AT THIS POINT THAT IS A FULL DAY MODULE, AND CSBA EFFECTIVELY HANDS THE REINS OVER TO SCHOOL SERVICES AND SAYS PLEASE GO TEACH THIS. THE BEAUTY OF THIS PRESENTATION WHILE THERE IS SOME OVERLAP BETWEEN WHAT IS IN THAT THIRD MODULE OF MASTERS AND GOVERNANCE, THE BEST PART OF

[00:05:01]

I HAVE TAKEN SOME OF THAT INFORMATION REALLY CUSTOMIZED IT SO THAT IT IS SPECIFIC TO BELLFLOWER.

EVERY NUMBER WE TALK ABOUT AND SCREEN SHOT WILL BE YOUR REPORT.

AS MUCH AS THIS IS DRINKING WATER FROM A FIRE HYDRANT AT POINTS, MY HOPE IS THIS BECOMES A WORKING DOCUMENTA WORKING TOOL SO AS YOU PROGRESS THROUGH YOUR BOARD TENURE WHETHER IT'S LOOKING AT THE UNAUDITED ACTUALS NEXT MONTH, GETTING INTO FIRST AND SECOND INTERIM LATER IN THE YEAR AND ULTIMATELY THE ADOPTED BUDGET FOR NEXT YEAR, YOU CAN ALWAYS GO BACK TO THIS BOOKLET AND SAY WHAT WAS HE TALKING ABOUT? WHAT WAS THAT GUY TALKING ABOUT? I REMEMBER HE SAID THAT TERM WHAT DOES THAT MEAN? HE WILL HAVE THAT WORKING DOCUMENT FOR YOU. OKAY? SO AS WE GET INTO SCHOOL FINANCE, I'M GOING TO START AT WHAT I BELIEVE TO BE THE 30,000-FOOT LEVEL AND REALLY TRY TO HONE DOWN AS WE GO THROUGH THE CONVERSATION TODAY.

I THINK A REALLY IMPORTANT CONCEPT THAT WE ALL NEED TO UNDERSTAND ESPECIALLY WHEN WE THINK ABOUT THE RELATIONSHIP BETWEEN THE BUDGETS THAT COME TO THE BOARD SEVERAL TIMES A YEAR AND ULTIMATELY THE UNAUDITED ACTUALS IS THAT THERE A LOT THAT HAPPENS IN BETWEEN THOSE TWO PERIODS.

SO THIS PARTICULAR FLOW CHART, THE GREY OCTAGONS REPRESENT ITEMS THAT ARE HAPPENING LOCALLY.

THE BLUE OCTAGONS ARE THE THINGS THAT ARE HAPPENING REALLY AT THE STATE WIDE LEVEL. SO I WANT TO TALK ABOUT THE GREY ONES FIRST. SO EVERY YEAR WE TALK ABOUT A SCHOOL FISCAL CYCLE. A SCHOOL FISCAL YEAR GOES FROM JULY 1 TO JUNE 30TH. THAT BEING SAID A SCHOOL FISCAL CYCLE FOR EACH YEAR COVERS MUCH MORE THAN THAT 12 MONTH PERIOD FROM JULY 1 TO JUNE 30TH. FOR STAFF, STAFF ARE ALREADY STARTING TO THINK ABOUT THE 27, 28 FISCAL YEAR WITH THEIR MULTIYEAR PLANNING. A LOT OF THAT INFORMATION COMES TO THE BOARD IN THE APRIL TIME PERIOD WHERE WE START TO TALK ABOUT L CAPS. WE GET THE PARENT COMMITTEES INVOLVED. BUT REALLY THE KICKOFF OF THE NECK FISCAL YEAR HAPPENS WHEN THE BOARD A THE PUBLIC HEARING AND THEN ADOPTS THE BUDGET FOR THE SUBSEQUENT FISCAL YEAR.

SO THAT JUST FOR THE 26, 27 YEAR THAT JUST HAPPENS IN THE MOST RECENT IN JUNE. SO THAT WAS THE KICKOFF OF THE 26, 27 YEAR. THAT 26, 27 YEAR WON'T BE FULLY COMPLETE THROUGH THE PURVIEW OF THE BOARD AND THE BOARD'S RESPONSIBILITIES AND ACTIONS UNTIL THE APPROVAL OF THE UNAUDITED ACTUALS A YEAR FROM NOW.

A YEAR FROM SEPTEMBER IS WHEN WE WILL CLOSE THAT OUT.

SO ANY FISCAL YEAR IS ABOUT 16 MONTHS WHEN YOU THINK ABOUT THE BOARD ACTION TO ADOPT A BUDGET ALL THE AWAY THROUGH THE UNAUDITED ACTUALS. THE FOLLOWING SEPTEMBER.

NOT THE NEXT SEPTEMBER BUT THE FOLLOWING SEPTEMBER 16 MONTHS LATER. WITHIN THAT BUDGETARY PROCESS, THE STATE HAS SELL UP SOME GUARD RAILS WHICH ARE THERE SO THAT IT ENSURE THE BOARD HAS TRANSPARENCY WITH WHAT THE NUMBERS ARE AND HOW THEY ARE CHANGING.

AND THAT WILL BE A CONSTANT THEME THAT I WANT TO KIND OF WEAVE IN THROUGH THE PRESENTATION TONIGHT IS WHEN WE THINK ABOUT A BUDGET, A BUDGET IS STAFF'S BEST PROJECTIONS AND ESTIMATES BASED OFF OF THE MOST CURRENT INFORMATION AVAILABLE AT THE TIME. AND WE KNOW THAT INFORMATION IS GOING TO CHANGE. WHEN WE THINK ABOUT THE GUARD RAIL THAT IS ARE THERE, WE HAVE THE ADOPTED BUDGET IN JUNE.

WE FAST FORWARD TO SEPTEMBER ON THE INSIDE OF THE FLOW CHART THERE. AND THAT'S THE FIRST REQUIRED UPDATE FROM ADOPTED BUDGET FROM THAT FISCAL YEAR.

IF WE USE OUR 26, 27 YEAR AS THE ILLUSTRATIVE EXAMPLE, WHEN WE GET TO SEPTEMBER OF 2026, STAFF WILL BE BRINGING FORWARD THE FIRST INTERIM REPORT. AND I BRING THIS UP BECAUSE THIS WAS A AHA MOMENT FOR ME WHEN I WAS TEACHING ONE OF THE MASTERS IN GOVERNANCE TRAINING. I HAD A TRUSTEE IN THAT TRAINING AND THEY HAD JUST WON THEIR ELECTION IN NOVEMBER.

THEY WERE ON THE BOARD. THEY GO TO THEIR FIRST MEETING AND ONE OF THE VERY FIRST ACTION WAS TO APPROVE THE FIRST INTERIM. AND THEY SAID HOW ARE WE EXPECTED TO LEARN THIS WHOLE NEW BUDGET SO QUICKLY.

IT WAS KIND OF A AHA MOMENT FOR ME.

AND I WANT TO MAKE SURE I CONNECT THE DOTS THAT THE INTERIM IT'S NOT A BRAND NEW BUDGET.

IF YOU HAD BEEN THERE SINCE THE ADOPTION OF THAT YEAR IT WAS AN UPDATE OF WHAT STAFF BROUGHT FORWARD IN JUNE.

RIGHT. IT'S INCORPORATING ALL OF THE CHANGES THAT HAVE HAPPENED FROM JUNE ALL THE WAY THROUGH SEPTEMBER. THERE'S A LOT OF MOVING PIECES BETWEEN THOSE TWO PERIODS. O'THAT WILL BE THE FIRST UPDATE.

WHEN WE GO DOWN TO MARCH ON OUR FLOW CHART, THAT WILL BE THE SECOND UPDATE WHICH IS CALLED SECOND INTERIM.

[00:10:02]

AND A LOT OF THOSE ASSUMPTIONS THAT WERE USED IN JUNE WHEN STAFF BROUGHT THE BUDGET BACK AT FIRST INTERIM, THOSE ARE BECOMING ACTUALS IN THE REARVIEW MIRROR.

SO THE INTENTION OF THIS FLOW HERE FROM ADOPT THE BUDGET IS REALLY TO HONE IN WHAT THE REVENUES ARE AND GIVE A CLEAR PENTICTON ABOUT WHAT THE TRAJECTORY IS ON FROM A FISCAL STANDPOINT. ONCE WE GET THROUGH SECOND INTERIM EACH YEAR WHEN THE ADOPTED BUDGET FROM THE NEXT YEAR IS BROUGHT TO THE BOARD THERE IS A SECTION CALLED ESTIMATED ACTUALS WITHIN THAT BUDGET.

SOS THAT THE FOURTH TIME THE BOARD WOULD HAVE SEEN A SINGLE YEAR BUDGET BEFORE THEM. ADOPTED BUDGET, FIRST AND SECOND INTERIM AND ACTUALS. ALL OF THOSE ARE BUDGETARY ESTIMATES. AND THEN THE FIRST AND FINAL COMPONENT OF THAT WOULD BE THE AUDITED ACTUALS EVERY SEPTEMBER.

SO EACH YEAR YOU ARE SEEING THEM EFFECTIVELY FIVE TIMES IN THE FORMAT THAT THE STATE REQUIRES IN THOSE FORMS. FOR THE 26, 27 YEAR YOU HAVE SEEN IT EXACTLY ONCE WHICH WAS THE ADOPTED BUDGET WHERE THE BOARD TOOK ACTION.

AND YOU ALSO APPROVED THE LOCAL CONTROL AND ACCOUNTABILITY PLAN.

SO YOU STILL HAVE FOUR MORE CRACKS.

THE THE OTHER COMPONENT I WANT TO TALK ABOUT IS THE RELATIONSHIP BETWEEN THE DISTRICT'S LOCAL BUDGET AND THE INTERACTION WITH WHAT'S GOING ON AT THE STATE.

SO WHEN STAFF BRINGS FORWARD THE BUDGET EVERY JUNE WE HAVE A SAYING. EVERY NUMBER IN THERE IS EXACTLY WRONG, BUT WE WANT IT TO BE APPROXIMATELY RIGHT.

AND THAT'S NOT TO INFER THAT PEOPLE AREN'T BUDGETING CORRECTLY OR DON'T KNOW WHERE THE NUMBERS ARE COMING FROM.

IT'S THE FACT THAT EVERY SINGLE NUMBER THAT'S BEING PROJECTED IN THE BUDGET, A LOT OF THOSE NUMBERS ARE ANCHORED TO ESTIMATES THAT ARE COMING FROM THE STATE.

SO IN JUNE WHEN STAFF BRINGS THE BUDGET FORWARD AND THE BOARD TAKES ACTION ON THE ADOPTED BUDGET, IT'S THE MOST CURRENT INFORMATION AT THE TIME OR IT SHOULD BE.

NOT LESS THAN TWO WEEKS AFTER THE BOARD ADOPTS THE BUDGET WE SEE THE STATE ENACT THEIR BUDGET FOR THE SAME FISCAL YEAR.

SO EVEN THOUGH THE BOARD HAS JUST TAKEN ACTION ON THE MOST CURRENT INFORMATION, NOT LESS THAN TWO WEEKS LATER, WE COULD SEE A SIGNIFICANT NUMBER OF CHANGES THAT ULTIMATELY NEED TO BE FOLDED BACK INTO THE DISTRICT'S BUDGET.

ONE OF THOSE BIG THINGS THAT HAPPENED JUST THIS YEAR AND I WILL SPRINKLE IN SOME OF THOSE THINGS IS THE PRESENTATION OF THE PREGNANCY DISABILITY LEAVE. EVERYBODY TALKED ABOUT IT BUT NOBODY KNEW IF IT WAS GOING TO GO THROUGH OR HOW MUCH MONEY WOULD BE ALLOCATED TO PROVIDE THAT BENEFIT TO EMPLOYEES.

SO THE MAJORITY OF SCHOOL DISTRICTS WHEN THEY BROUGHT THEIR ADOPTED BUDGET FORWARD TO THE SCHOOL BOARDS IN JUNE DIDN'T HAVE THE COST OF PROVIDING THE PAID PREGNANCY DISABILITY LEAVE AND DIDN'T HAVE REVENUES ASSOCIATE TO COVER THOSE COSTS.

WE KNOW NOW THAT IS IN LAW EFFECTIVE JANUARY 1, 2017.

THAT'S A GOOD THING, RIGHT. BUT IT'S A REAL WORLD EXAMPLE, A PRACTICAL EXAMPLE OF WHY WE HAVE TO ACKNOWLEDGE THAT THE BUDGET IS GOING TO CHANGE THROUGHOUT THE YEAR BECAUSE MORE INFORMATION BECOMES AVAILABLE THROUGHOUT THE YEAR FOR US.

ANOTHER BIG COMPONENT WHEN WE THINK ABOUT CHANGES FROM ADOPTED BUDGET TO FIRST INTERIM IT'S THIS SEVEN-MONTH TIME PERIOD.

AT ADOPTED BUDGET STAFF IS MAKING ASSUMPTIONS ON EVERYTHING IN THERE. THE THE NUMBER OF STUDENTS THAT WILL BE ENROLLED IN THE 26, 27 YEAR.

THE FREQUENCY WITH WHICH THOSE STUDENTS WILL SHOW UP TO SCHOOL.

HOW MANY POSITIONS ARE GOING TO BE FILLED.

ARE OUR TEACHERS GOING TO COME BACK WITH ADDITIONAL UNITS ON A SALARY SCHEDULE? IT'S ALL BASED ON ASSUMPTIONS AT THIS POINT. SO A LOT OF THE INFORMATION ISN'T EVEN KNOWN UNTIL SEPTEMBER OR OCTOBER.

SO THIS ACKNOWLEDGMENT THAT THINGS ARE GOING TO CHANGE NOT ONLY AT THE LOCAL LEVEL AS THINGS BECOME KNOWN AND QUANTIFIABLE BUT ALSO AT THE STATE LEVEL.

WE CAN'T, NOBODY IS GOING TO GUESS EXACTLY WHAT'S IN THE ENACTED STATE BUDGET UNTIL THE LEGISLATURE AND GOVERNOR APPROVE THAT BUDGET. WE HAVE A COUPLE MOVING PEES THERE WHICH AGAIN REINFORCES THE NEED FOR THOSE FOUR BUDGETARY PIECES TO COME TO THE BOARD EACH AND EVERY YEAR.

ALL RIGHT. SO I PROMISED I'M NOT GOING TO GET TOO FAR IN THE WEEDS WHEN WE TALK ABOUT THIS BUT I DO WANT TO INTRODUCE THE CONCEPT WHICH IS THE STANDARDIZED ACCOUNT CODES SYSTEM. IT IS THE STRUCTURE THAT THE STATE OF CALIFORNIA THROUGH THE CALIFORNIA DEPARTMENT OF EDUCATION HAS ROLLED OUT TO EVERY SINGLE LOCAL EDUCATION AGENCY IN THE STATE OF CALIFORNIA.

SO WHEN WE THINK ABOUT THE GRAVITY OF THAT, THAT'S FOR

[00:15:01]

THERE'S ABOUT A THOUSAND SCHOOL DISTRICTS, ANOTHER 1400 COUNTY SCHOOLS AND CENTRES OF EDUCATION.

SO COLLECTIVELY 2,500 EDUCATIONAL AGENCIES ARE REQUIRED TO REPORT THEIR REVENUES, HOW THEY RECEIVE THE MONEY AND THEIR EXPENDITURES EVERY YEAR.

IT'S NOT ONLY THE ACTUALS BUT DURING THOSE BUDGETARY PERIODS AS WELL. SO THE STATE HAS SET UP THIS STRUCTURE WHERE NO MATTER WHERE WE ARE IN THE STATE WHETHER DOWN HERE IN L.A. COUNTY. IF WE GO UP TO FRESNO COUNTY, DEL NORD COUNTY IN THE NORTHWESTERN CORNER OF THE STATE IF I WERE TO LOOK AT THEIR FINANCIAL STATEMENT, IT'S ANOTHER LANGUAGE. I SAY I'M BILINGUAL.

I SPEAK ENGLISH AND SACS FLUENTLY.

I DON'T EXPECT THE BOARD TO BE BUT I DO THINK THERE'S SOME TALKING POINTS, SOME SUBJECTS OF KNOWLEDGE THAT I THINK ARE IMPORTANT IN YOUR ROLES AS TRUSTEES TO BE ABLE TO UNDERSTAND WHAT THOSE CONCEPTS MEAN AS YOU ARE LOOKING AT THE FINANCIAL REPORT. AS STAFF IS PRESENTING INFORMATION TO YOU IN CLOSED SESSION TO MAKE DECISION.

IF YOU ARE HAVING COMMUNICATIONS WITH YOUR COMMUNITY, THE LOTTERY JACKPOT WAS HUGE. YOU'RE PROBABLY GETTING A LOT OF MONEY. NOPE.

WE'LL TALK ABOUT THAT A LITTLE BIT.

SO WITHIN THIS ACCOUNT CODE STRUCTURE, GO I HAD TO GUESS OFF HAND I WOULD SAY THERE'S 20,000 INDIVIDUAL ACCOUNT STRINGS WITH MORE THAN 20 DIGITS IN EACH ACCOUNT STRING THAT THE DISTRICT USES TO RECOGNIZE ALL OF THE MONEY THAT'S RECEIVED AND TO RECOGNIZE ALL OF THE WAYS THAT THE DISTRICT SPENDS THOSE DOLLARS. WITHIN EACH, EACH OF THESE COMPONENTS IS PRESENT THERE. MORE THAN 20 DIGITS ACROSS EACH ACCOUNT STRING. THE TWO FIELDS THAT I THINK ARE MOST IMPORTANT FOR THE TRUSTEES TO HAVE A BASIC UNDERSTANDING OF ARE THE RESOURCE FIELD AND THE OBJECT FIELD BECAUSE AS YOU ARE LOOKING AT THE REPORTS THAT COME TO YOU AS PART OF THE AUDITED ACTUALS, THOLES TWO FIELDS THE OBJECT MORE SO ARE VERY PROMINENT ON THE FORMS THAT YOU'RE LOOKING AT.

SO HAVING THAT BASIC UNDERSTANDING OF WHAT'S INCLUDED IN THOSE I THINK WILL BE HELPFUL FOR YOU GOING FORWARD.

THE RESOURCE WITHIN OUR ACCOUNT STRING IS GOING TO TELL US WHERE IS THE MONEY COMING FROM. WHAT POT OF MONEY ARE WE SPENDING? ARE WE SPENDING UNRESTRICTED OR RESTRICTED DOLLARS? ARE THE DOLLARS TIED DOLLARS, SPECIAL ED DOLLARS. THESE TERMS I AM GUESSING HAVE COME UP IN BOARD MEETINGINGS OR CONVERSATION WITHS SOME OF YOUR EDUCATIONAL PARTNERS. SO WHEN YOU HEAR THOSE CONCEPTS, THAT IS THE RESOURCE FIELD. THE OBJECT FIELD TELLS US WHAT WE'RE SPENDING THE MONEY ON. SO CERTAINLY WE ARE SPENDING DOLLARS. THE OBJECT WILL TELL US IS IT A PERSONNEL COST? IS IT A NON-PERSONNEL COST? IS IT SPENDING ON BOOKS AND SUPPLIES? IS IT SPENDING ON UTILITIES. SO WE CALL THAT THE NATURAL CLASSIFICATION. HOW ARE THE DOLLARS GOING OUT THE DOOR. AND THAT OBJECT FIELD WILL BE MUCH MORE PROMINENT WHEN WE LOOK AT THE FORMS COMING ACROSS THE BOARD EACH AND EVERY PERIOD. ALL RIGHT.

SO I PROMISED ALL OF THE NUMBERS WOULD BE YOUR NUMBERS THIS.

SHOULD LOOK SOMEWHAT FAMILIAR EVEN IF IT'S NOT MEMORIZED.

BUT I PROMISE IF YOU LOOKED AT YOUR ADOPTED BUDGET PACT YOU WOULD SEE THESE EXACT NUMBERS IN FRONT OF YOU HERE.

SO THIS PARTICULAR SNIPPET AS PART OF YOUR ADOPTED BUDGET PACT WHICH IS PROBABLY 200 PAGES. THERE'S A LOT OF STUFF IN THERE.

WE WILL BE FOCUSING ON THE GENERAL FUND OR THE FORM 01 WHICH IS WHERE THIS CAME FROM. I HAD MENTIONED AT THE ADOPTED PERIOD, WE WILL HAVE A COUPLE DIFFERENT FISCAL YEARS THAT ARE REPORTED HERE. SO IF WE START GOING ALONG THE HEADER OF THIS PARTICULAR DOCUMENT, YOU WILL SEE THE MIDDLE THREE COLUMNS ARE THE 25, 26 ESTIMATED ACTUALS.

SO THAT IS THE FOURTH TIME THE BUDGET IS COMING TO THE BOARD.

SO YOU WOULD HAVE ALREADY HAD ADOPTED BUDGET FIRST INTERIM, SECOND INTERIM, AND NOW ESTIMATED ACTUALS.

THAT WILL BE THE MIDDLE THREE. THE FAR RIGHT THREE THEN IS THE ADOPTED BUDGET THAT DISTRICT PRESENTED TO YOU THAT YOU WERE REALLY TAKING ACTION. ARE YOU GOING TO APPROVE OR NOT GOING TO APPROVE. IT WAS REALLY ON THE THREE RIGHT

[00:20:01]

AGAIN THIS WAS BROUGHT TO YOU IN JUNE.

THAT'S OUR HERDS GOING ACROSS. I WANT TO DEFINE A COUPLE OF THE HE REMEMBERS IT RIGHT BENEATH THAT.

IF WE LOOK AT THE BUDGET, THERE ARE THREE COLUMNS UNDERNEATH THAT. UNRESTRICTED, RESTRICTED, AND COMBINED OR THE TOTAL ON THE RIGHT-HAND SIDE SIDE THERE.

EVERYTHING IN THE UNRESTRICTED COLUMN IS EITHER THE RECEIPT OR THE EXTENDING OF DOLLARS THAT CAN BE USED FOR EFFECTIVELY ANY EDUCATIONAL PURPOSE. ANYTHING IT TAKES TO RUN A SCHOOL DISTRICT, THAT'S WHERE YOU SEE DOLLARS COMING IN AND DALLAS GOING OUT. WE'LL DEFINE THE ROWS IN JUST A MOMENT. BUT I WANT TO START WITH THOSE TWO SCRIPTERS. THE MIDDLE COLUMN, THEN.

THAT RESTRICTED COLUMN. THOSE ARE DOLLARS THAT ARE RECEIVED FOR A SPECIFIC PURPOSE AND HAVE TO BE SPENT FOR A SPECIFIC PURPOSE. SO THIS IS GOING TO AGGREGATE A LOT OF DIFFERENT REVENUE SOURCES.

IT'S THE RESTRICTED COLUMN AND I MEANT THE RESOURCE CODE.

IT WILL INCLUDE ALL THE DISTRICT'S TITLE MONEYS.

TITLE ONE, TWO, THREE, FOUR. IT WILL INCLUDE ALL THE SPECIAL EDUCATION DOLLARS THE DISTRICT RECEIVES FROM THE FEDERAL AND STATE GOVERNMENT. IT WILL INCLUDE ALL OF THE ONE-TIME BLOCK GRANTS THAT THE STATE HAS BEEN AGGREGATED OUT.

AT THIS LEVEL WE CAN'T SEE HOW IT IS BEING SPENT, WHAT IT IS GOING SPENT ON. THAT WOULD COME FROM DISTRICT STAFF IF THE BOARD HAD QUESTIONS ABOUT HOW THAT MONEY IS BEING SPENT. BUT AN IMPORTANT NOTE FOR THAT REDISTRICTED COLUMN, STAFF DOESN'T GET TO DECIDE WHAT IS RESTRICTED VERSUS UNRESTRICTED. HOW THE MONEY COMES TO US TELLS US IF IT'S UNRESTRICTED OR RESTRICTED.

THERE'S NOT ANY LEEWAY THERE WHERE STAFF GETS TO SAY THIS MONEY IS UNRESTRICTED AND THIS IS RESTRICTED.

IF WE GET SPECIAL ED DOLLARS, IT IS ALWAYS GOING TO BE RESTRICTED. IF WE GET LOCAL CONTROL FUNDING FORMULA DOLLARS, IT IS ALWAYS GOING TO BE UNRESTRICTED.

THE STATE IS TELLING US WHAT COLUMN THOSE GO IN.

ALL RIGHT? SO THAT IS OUR HEADERS GOING DOWN. AS WE LOOK AT THE ROWS, THAT SECTION IS OUR REVENUES. IT IS MONEY FLOWING INTO THE DISTRICT. I AM GOING TO WALK THROUGH ALL OF THESE SECTIONS IN MORE DETAIL AS WE GO ALONG AND REALLY UNPACK WHAT GOES ON INTO EACH OF THESE SECTIONS BUT THESE ARE COMING IN THROUGH THE DISTRICT. THEY'RE BEING RECEIPTED.

IF IT'S REVENUES IN THE MIDDLE THREE COLUMNS, THOSE ARE REVENUES FOR THE 25, 26 YEAR. IN THE FAR RIGHT COLUMN OR COLUMNS, THOSE ARE REVENUES FOR THE 26, 27 YEAR.

AND AGAIN BECAUSE BOTH ARE BUDGETS, THEY ARE ESTIMATES.

CERTAINLY WE WOULD EXPECT THE 25, 26 NUMBERS TO BE A LOT MORE SOLID BECAUSE A MAJORITY OF THE YEAR IS ALREADY BEHIND US.

WHEN THIS INFORMATION IS BROUGHT TO THE BOARD IN JUNE, TEN MONTH OF THE SCHOOL YEAR, 11 MONTH OF THE SCHOOL YEAR ARE ALREADY IN THE REARVIEW MIRROR. SO THOSE NUMBERS SHOULD BE PRETTY CONSISTENT. AND WE'LL TALK ABOUT THAT A LITTLE BIT LATER WHEN WE TALK ABOUT THE CHANGES FROM ESTIMATED ACTUALS TO OTHER ACTUALS. CONVERSELY THOSE REVENUES IN THE 26, 27 COLUMNS ARE BASED ON PROJECTIONS THAT INCLUDE ENROLMENT FOR THE 26, 27 YEAR. AVERAGE DAILY ATTENDANCE FOR THE 26, 27 YEAR. FUNDING FROM THE STATE OF CALIFORNIA FOR THE 26, 27 YEAR. AND AT THE TIME THE BOARD APPROVED THIS, THE STATE HADN'T EVEN ENACTED IT BUDGET YET.

WE ALREADY KNOW A LOT OF THOSE NUMBERS ARE SUBJECT TO CHANGE BASED ON WHAT THE STATE ENACTED IN ITS BUDGET.

BUT THE QUESTIONS WOULD HAVE BEEN WHEN IT CAME TO A BOARD WHAT WERE THE ASSUMPTIONS THE STAFF USED AT THE TIME.

AND MY EXPECTATION WAS BASED ON THE MOST CURRENT INFORMATION AVAILABLE BUT NOT GETTING IN FRONT OF THE STATE.

NOT INCLUDING THINGS IN THE SCHOOL DISTRICT'S BUDGET IF THE STATE HAD NOT YET ENACTED THE BUDGET.

GET DOWN TO SECTION B, THAT WILL BE EXPENDITURES SO THE SPENDING OF YOUR DOLLARS. THE ANYTHING IN THE SPENDING IN AN UNRESTRICTED COLUMN MEANS WE ARE SPENDING DOLLARS THAT RUN RESTRICTED. WE DON'T KNOW WHICH POT OF MONEY WE'RE SPENDING AT THIS LEVEL. CONVERSELY ANY EXPENDITURES IN THE RESTRICTED COLUMN ARE RESTRICTED DOLLARS.

SAME CONCEPT POLICE. WE COULD BE SPENDING SPECIAL ED DOLLARS, TITLE ONE DOLLARS, COULD BE SPENDING LEARNING

[00:25:02]

THAT LEVEL OF DETAIL IS NOT APPARENT HERE.

THIS IS THE SUMMARY LEVEL WHERE IT ALL ROLLS UP.

SO CASH OUTFLOWS IN SECTION B. SECTION C IS JUST THE DIFFERENCE BETWEEN SECTION A AND SECTION B. SO REVENUES MINUS EXPENSES.

SECTION D, THE ONLY LINE ITEM IN SECTION D YOU'LL SEE THE NUMBERS EQUAL EACH OTHER, SO FOR THE 25, 26 YEAR, THE NUMBER ABOUT 39 MILLION AND IN THE 26, 27 YEAR THAT NUMBER IS ABOUT 26 AB6 JUST UNDER 37 MILLION. THAT'S OUR SUPPORT FOR PROGRAMS THAT DON'T RECEIVE ENOUGH MONEY FROM THE FEDERAL OR STATE GOVERNMENT. WE WILL UNPACK THAT AS WE GO FURTHER ALONG BUT WE WILL PAUSE AND TALK ABOUT THAT NUMBER IN MORE DETAIL. SECTION E THEN WHICH IS AN AREA WHERE I THINK THE BOARD SHOULD ALWAYS GO.

WHENEVER YOU'RE LOOKING AT AN ADOPTED BUDGET OR FIRST INTERIM, SECOND INTERIM UNAUDITED ACTUALS, OUR FOCUS SHOULD BE EXPLICITLY BE THE UNRESTRICTED COLUMN.

WHEN I LOOK AT FINANCIAL PROJECTIONS HERE FOR THE 26 YEAR AS OF THIS MOST RECENT JUNE SO JUST A FEW MONTH AGO.

STAFF BROUGHT FORWARD A PROJECTION FOR THE 25, 26 YEAR.

WE WILL HAVE A DEFICIT IN THE GENERAL FUND OF ALMOST $32 MILLION. SO I PULLED THAT NUMBER FROM THE UNRESTRICTED COLUMN UNDER THE 25, 26 ESTIMATED ACTUALS.

31.96 I BELIEVE IS THE NUMBER. THAT MEANS THAT THE EXPENDITURES AND SUPPORT FOR PROGRAMS THAT DON'T RECEIVE ENOUGH MONEY FROM THE FEDERAL AND STATE GOVERNMENT ARE GREATER THAN THE REVENUES THAT ARE BEING RECEIVED BY THE DISTRICT.

ALMOST A $32 MILLION SHORT FALL. SO THAT IS THE DEFINITION OF DEFICIT SPENDING. AND THE QUESTION THEN BECOMES IS DEFICIT SPENDING SOMETHING WE HAVE DONE YEAR OVER YEAR? IS IT PLAN DEFICIT SPENDING? AND I WILL REST ASSURED THERE IS SOME PLANNED DEFICIT SPENDING INCLUDED IN THAT A LITTLE BIT LATER. BUT THE PROJECTION FROM THE STAFF WAS THAT WE WOULD HAVE $32 MILLION LESS AT THE END OF THIS YEAR THAN WE DID LAST YEAR BECAUSE WE'RE DEFICIT SPENDING.

OKAY? SO AS A TRUSTEE LOOKING AT THAT UNRESTRICTED COLUMN AND WHAT IS THAT NUMBER.

SO ANYTIME YOU SEE A NUMBER IN BRACKETS, THAT'S A NEGATIVE.

IT WOULD BE EASIER IF THEY USED NEGATIVES INSTEAD OF BRACKET BUT THAT'S WHAT IT MEANS. NOT A BAD THING BUT SOMETHING WE SHOULD KEEP AS PART OF OUR CONVERSATION AT THE FOREFRONT WHEN WE ARE MAKING ZIGS ABOUT HOW TO USE OUR RESOURCES.

THE REASON WHY I FOCUS ON THE UNRESTRICTED COLUMN IS THE SCHOOL REQUIRES STATE DISTRICTS TO MAINTAIN A MINIMUM RESERVE, AND THAT ONLY CONTEMPLATE WHAT'S HAPPENING IN THE UNRESTRICTED COLUMN. I'M NOT SUGGESTING THE DISTRICT IS IN FINANCIAL TROUBLE RIGHT NOW SO PLEASE DON'T THINK THAT YOU ARE, BUT IF THE DISTRICT DID SPEND DOWN ALL OF ITS UNRESTRICTED RESERVE, THAT'S WHERE THE FINANCIAL TROUBLES START TO HAPPEN. WE COULD HAVE A LOT OF MONEY ON THE RESTRICTED SIDE, BUT IT DOESN'T MATTER IF WE DON'T HAVE ANY MONEY ON THE UNRESTRICTED SIDE.

>> CAN I ASK A QUESTION? CAN YOU SPEND A LITTLE TIME ON THE CONTRIBUTIONS PORTION? BECAUSE I KNOW WHAT YOU'RE SAYING FOCUSING ON THE UNRESTRICTED.

BUT IT SAID DEFICIT BUT THE CONTRIBUTION IS 39 MILLION FROM THE UNRESTRICTED TO THE RESTRICTED.

CAN YOU EXPLAIN THAT A LITTLE BIT FOR US?

>> ABSOLUTELY. THE WAY WE GET TO THE 31 MILLION IS AFTER INCORPORATING THE CONTRIBUTIONS.

WHAT IT IS IS A DISTRICT USING ITS UNRESTRICTED DOLLARS TO SUPPORT PROGRAMS THAT DON'T RECEIVE FUNDING FROM THE FEDERAL AND STATE GOVERNMENT. THE BIG ONE INCLUDED IN THIS.

THERE ARE TWO PROGRAM. UNRESTRICTED ROUTINE MAINTENANCE BUT THE OTHER ONE IS SPECIAL EDUCATION.

WHEN WE LOOK AT ALL OF THE GHOSTS THAT WE ARE ENOCCURRING, THE FEDERAL GOVERNMENT INCURS 10% OF THOSE COSTS ON AVERAGE.

THE STATE GOVERNMENT COVERS ANYWHERE FROM 35 TO 40% OF THOSE COSTS ON AVERAGE WHICH MEANS THE REMAINING 50% WE ARE COVERING THOSE COSTS WITH UNRESTRICTED DOLLARS.

SO IT SHOWS UP AS A SHIFT FROM THE UNRESTRICTED TO THE RESTRICTED. IT FUNCTIONS THE SAME WAY.

AND WE WILL UNPACK THAT A LITTLE BIT MORE AS WE GO ALONG.

THANK YOU FOR HIGHLIGHTING THAT BECAUSE IT IS A HOT TOPIC

THROUGHOUT THE STATE RIGHT NOW. >> I HAVE A QUESTION FOR STAFF

[00:30:01]

THAT'S NOT MONEY THAT'S OVER. >> ONE-TIME EXPENDITURES AND CONTRIBUTIONS AS YOU MENTION SPECIAL EDUCATION AND OTHER ASPECTS AS WELL THAT IS INCLUDED IN THE CONTRIBUTION.

>> BUT IN THAT PARTICULAR COLUMN IT WAS THE FIELDS THAT SENT US

OVER 31 MILLION, CORRECT? >> I CAN'T SPEAK TRULY TO SAY THE COMPLETE REASON WE ARE IN THIS POSITION.

MENT I WOULD HAVE TO RESEARCH THAT.

SORRY, GO AHEAD. >> IF YOU GO UP TO LINE C, THAT IS PURELY THE DIFFERENT BETWEEN THE REVENUES AND EXPENDITURES.

SO THE GENERAL FUND IS SPENDING LESS THAN REVENUES.

IN THE PAST BECAUSE THERE IS ANOTHER SLIDE LATER ABOUT WHAT HAS HAPPENED OVER TIME, THAT MIGHT BE WHERE YOU SEE THE FIELD IN SOME OF THOSE OVER TIME BECAUSE NOT ALL OF THOSE DOLLARS WERE SPENT IN 25, 26 IF THAT MAKES SENSE.

>> TO TACK ON TO THAT AND WE WILL TALK ABOUT IF IT'S A PRESSING QUESTION. IF WE ARE SPENDING MONEY ON A CAPITAL EXPENSE SO, A BIG COST FOR A SINGLE ITEM, WE WOULD GENERALLY SEE THAT IN THE EXPENDITURES SECTION ON ROW 6 WHERE IT SAYS CAPITAL OUTLAY. SO THERE'S A PROJECTED COST FOR THE CURRENT YEAR OF ABOUT $18 MILLION OF UNRESTRICTED MONEYS. MY GUESS IS THAT'S WHERE THE COST OF THOSE FIELDS ARE THAT ARE PAID FOR OUT OF THE GENERAL FUND. ALL RIGHT.

THAT WAS PAGE ONE AND I'LL ONLY TALK ABOUT THAT TO TALK ABOUT THE OVERVIEW. AS I LOOKED AT PAGE 2, I PULLED FORWARD ROW E BECAUSE I DON'T WANT THAT TO BE LOST.

THIS PAGE IS CONFUSING ENOUGH AS IS.

SO IF WE CARRY FORWARD ROW E WHICH I THINK IS THE MOST IMPORTANT TO LOOK AT. THE WHEN YOU GET YOUR BOARD PACTS AND THEY HAVE FINANCIAL INFORMATION, SHOULD GO EXACTLY TO ROW E BECAUSE THAT IS GOING TO SET THE FRAMEWORK FOR WHAT WILL BE HAPPENING IN THE PRESENTING.

FOR ROW E FOR 25, 26 STAFF IS PROJECTING A DEFICIT OF ALMOST $32 MILLION IN THE UNRESTRICTED GENERAL FUND, ALMOST 40 MILLION WHEN YOU INCORPORATE RESTRICTED. THE WAY WE READ SECTION F IS THAT'S OURING SAVINGS ACCOUNT. IT'S ENDING FUND, RESERVES, THOSE NAMES ARE SYNONYMOUS. BUT THE WAY IT READS IS CONFUSING SO I WANT TO WALK THROUGH EACH COMPONENT HERE.

WHEN YOU LOOK AT ROW F1 REMEMBER WE ARE LOOKING AT THE 25, 26 FISCAL YEAR. SO F1 SAYS AS OF JULY 1, 2025, THE DISTRICT STARTED WITH 86.339 MILLION IN ITS RESERVES.

AS A RESULT OF THE AUDIT THERE WAS AN ADJUSTMENT, DOWNWARD ADJUSTMENT WHICH WOULD HAVE BEEN IDENTIFIED IN THE AUDIT REPORT FOR THE 24, 25 YEAR OF 4.8 MILLION, SO IT SHOULD HAVE BEEN 81.4 MILLION. YOU THEN HAVE TO JUMP UP TO ROW E WHICH SAYS DURING THE 25, 26 YEAR EVEN THOUGH WE STARTED WITH 81.4 WE SPENT MORE THAN WE RECEIVED BY 31.9 MILLION SO WHEN YOU JUMP DOWN TO F2 THE 81 MILLION MINUS 31 MILLION GET US THE BALANCE OF 41.49 MILLION. SO AGAIN STAFF BASED OFF OF THE JUNE PROJECTIONS FOR THE YEAR IS PROJECTING WE STARTED WITH A $81 MILLION BALANCE, AND WE'RE GOING TO END 25, 26 WITH A $49 MILLION BALANCE. SO YOU GOTTA JUMP BACK AND FORTH THERE. ALL OF THE NUMBERS ARE A BREAK OUT OF THAT 14.4 MILLION. THOSE ARE NOT IN ADDITION TO THE 49.49 MILLION. SO OF THE 49.4 THE DISTRICT HAS

[00:35:04]

THE RESERVE FOR ECONOMIC UNCERTAINTY WHICH IS THE AMOUNT THAT HAS TO BE LEGALLY SET ASIDE TO MEET THE STATEMENT AMONG RESERVES IS 7.3, AND THEN AT THE BOTTOM ABOUT 4.5 MILLION LEFT OVER. SO IF YOU WERE TO GO BACK AND ADD UP ALL OF THOSE, IT EQUALS THE 49.54 MILLION ABOVE.

SO I WANT TO PAUSE THERE AND IS SEE ARE THERE ANY QUESTIONS ON THE FORM 1 VERTICAL, HORIZONTAL, THE SECTION IS VERY CONFUSION.

>> I JUST HAD ONE. WHERE IT A THE 49 MILLION AND THIS 26, 27 IS THE 30,000,952. WHAT DID WE SAVE $19 MILLION ON? CAN SOMEONE TELL ME WHAT WE SAVED THAT ON?

>> CAN I PROVIDE INFORMATION ON HOW WE GET THERE.

>> AS LONG AS YOU ANSWER MY QUESTION, YES.

>> I'LL DO MY BEST. SO THE ENDING BALANCE OF 49.49 MILLION FROM 25, 26 BECOMES THE BEGINNING BALANCE FOR 26, 27. SO IF YOU LOOK IN THE 26, 27 ON ROW F1 A, YOU'LL SEE THAT SAME 49.49 MILLION.

SO IF YOU THINK ABOUT IT ON A PERSONAL LEVEL IF ON DECEMBER 31ST WE HAD $10,000 IN OUR SAVINGS ACCOUNT AND WE GET OUR YEAR END STATEMENT AND IT ENDS WITH $10,000, OUR BEGINNING BALANCE ON JANUARY 1 IS ALSO GOING TO BE $10,000.

IT'S THE BALANCE THAT CARRIES FORWARD.

SO 26, 27 WE START WITH 41.49. IF YOU UP ONE ROW TO ROW E, THE PROJECTIONS AS OF ADOPTED BUDGET PROJECT THAT THE DISTRICT IS GOING TO SPEND MORE THAN IT RECEIVES BY 18.5 MILLION.

SO THE 49.49 GETS US TO THE 30 MILLION.

IF WE GO BACKWARDS ONE PAGE, I THINK THE TRUSTEE'S QUESTION IS WHY DO WE HAVE A $19 MILLION DEFICIT IN THE 26, 27 YEAR WE

CAN START. >> ACTUALLY MY QUESTION IS REALLY ON THIS PAGE OF THE 39 MILLION BECAUSE I WAS UNDER THE IMPRESSION THAT SOMEONE WHO WAS IN THE FIELD IF YOU'RE SAYING IT'S NOT, THEN THAT'S WHERE I'M CONFUSED.

BECAUSE I THOUGHT WE WENT OVER IN DEFICIT SPENDING BECAUSE OF THE FIELD. IF WE ARE OVER 39 MILLION I'M A LITTLE SHOCKED RIGHT NOW. I THINK I'M CONFUSED AND I AM

JUST TRYING TO UNDERSTAND. >> OKAY, ALL RIGHT.

I THINK WE WILL HAVE TO GET BACK TO YOU ON HOW MUCH IS BEING SPENT ON THE FIELDS. BUT THATCY LINE THE VICE PRESIDENT HIGHLIGHTED THE MAJORITY OF THAT WILL BE FOR SPECIAL EDUCATION. MAYBE THERE'S A COMPONENT FOR FIELDS BUT THE MAJORITY IS GOING TO BE FOR SPECIAL EDUCATION.

>> DOES ANYONE HAVE THAT ANSWER? IS IT FOR SPECIAL EDUCATION? SO ALL OF THAT EXTRA THAT'S ALL FOR SPED.

>> NOT ALL OF IT. >> GO AHEAD.

IT'S OKAY. >> I CAN ANSWER IT.

THE CONTRIBUTIONS CONSIST MOSTLY OF SPECIAL ED.

THERE IS A REQUIREMENT THAT 3% IS FOR RESTRICTED MAINTENANCE.

SO THAT'S THE REMAINDER OF THOSE DOLLARS.

>> IT WOULD BE MY EXPECTATION THAT THE CONTRIBUTIONS DON'T HAVE ANYTHING TO DO WITH EACH OTHER I GUESS SAID ANOTHER WAY.

THAT WOULD BE MY EXPECTATION. ANY OTHER QUESTIONS ON THE OVERVIEW? HOW TO READ THE FORMS. WHAT WE'LL DO NOW IS BREAK THEM DOWN INTO MORE DETAIL.

THIS IS WHERE I WILL DO MY VERY BEST TO FOLD IN WHAT HAPPENED AT THE STATE LEVEL WITH THE ENACTED BUDGET.

SO WHEN WE LOOK AT HOW THE DISTRICT IS RECEIVING IT MONEY, SO THE REVENUES THAT THE DISTRICT IS RECOGNIZING ON THAT FORM BROKEN OUT INTO REPORTING SECTIONS.

SO THE STATE WANTS TO KNOW HOW MUCH MONEY DID WE RECEIVE IN THE LOCAL FORMULA. WE WILL DIVE INTO THAT.

HOW MUCH WAS RECEIVED IN FEDERAL REVENUE, HOW MUCH IN STATE AND

[00:40:07]

SO THAT'S WHY WE ARE SO CONCERNED ABOUT WHAT'S HAPPENING IN THE STATE OF CALIFORNIA. WE HAVE A VERY PROGRESSIVE TAX SYSTEM AT THE STATE OF CALIFORNIA.

AND SO MANY OF THE DOLLARS THAT THE STATE COLLECTS TO FUND SCHOOLS COMES FROM OUR HIGHEST EARNERS OR 1 PERCENTERS.

AS THE STOCK MARKET GO, SO TOO DOES FUNDING FOR EDUCATION IN THE STATE OF CALIFORNIA. THERE'S A DIRECT CORRELATION.

IF THE STOCK MARKET IS NOT DOING WELL, THE STATE IS NOT COLLECTING AS MANY TAX RECEIPTS AS THEY OTHERWISE WOULD WHICH MEANS THE AMOUNT OF MONEY THE STATE HAS AVAILABLE TO GIVE TO SCHOOLS IS GOING TO DECLINE ALL THINGS BEING EQUAL.

IF 90 CENTS OUT OF EVERY DOLLAR WE GET COMES FROM THE STATE OF CALIFORNIA THAT CAN BE VERY IMPACTFUL IF THE STATE DOES EXPERIENCE A RECESSION. THE OTHER COMPONENTS THE FEDERAL REVENUE THAT COMES FROM THE FEDERAL GOVERNMENT.

AND LOCAL REVENUE WILL IMPACT THOSE AS WE GO ALONG.

AS YOU'RE LOOKING AT THE FORM AND AS A TRUSTEE I DON'T EXPECT YOU TO BE IN THE WEEDS ANALYZING THE NUMBERS, TRUST THAT THE NUMBERS THAT ARE REPORTED ARE THE NUMBERS CALCULATED BY STAFF TRUE AND ACCURATE BASED OFF THE MOST CURRENT INFORMATION AVAILABLE. BUT I DO WANT TO HIGHLIGHT SOMETHING THAT WE CAN GLEAN FROM THIS OVERVIEW.

SO LOOKING AT THE LCFF REVENUES THAT IS ALMOST 70 CENTS OF EVERY DOLLAR. IF YOU LOOK AT THAT COLUMN THOSE REVENUES MAKE UP MORE THAN 90-CENT OF EVERY DOLLAR.

NEARLY 90% OF UNRESTRICTED COMES FROM THE LOCAL FORMULA.

I WANT TO SPEND A LITTLE BIT OF TIME UNPACKING WHAT GOES INTO THAT I WILL SEGWAY INTO WHY IN A MOMENT.

AT THE TIME THAT THE BUDGET WAS BROUGHTERED FORWARD THE ONE THING WE KNEW WAS THE STATUTORY COLA.

AT THAT POINT WE KNEW THAT THE STATUTORY COLA WAS 2.87%.

IT STILL IS. IT HASN'T CHANGED.

BUT WHAT THIS DOCUMENT ALLOWS US TO DO IS REALLY QUICKLY DO THE MATH FOR US. WHEN YOU COMPARE THE 141 MILLION FROM 25, 26 WITH THE 144 MILLION IN 26, 27 THE CHANGE IS ONLY 1.7%. AS A TRU TRUSTEE I WOULD HOPE TY CAN EXPLAIN IF IT'S 2.87% WHY ARE OUR REVENUES ONLY GOING UP 2.7%. AND THE QUESTION IS THE UNDERLYING ASSUMPTIONS THAT GO INTO THE PROJECTIONS FOR THIS REVENUE SOURCE. WE TALK A LOT STATE WIDE.

THE GOVERNMENT FOCUSES ON IT AS WELL TALKING ABOUT DECLINING ENROLMENT. WHY IS THAT SO IMPACTFUL? BECAUSE THE STATE PROVIDES FUNDING TO THE MAJORITY OF LEAS IN THE STATE OF CALIFORNIA BASED ON THE NUMBER OF STUDENTS THAT SHOW TOWN SCHOOL EACH AND EVERY DAY.

THIS CONCEPT OF AVERAGE DAILY ATTENDANCE.

THIS STUDENT CAN'T SHOW UP IF THEY'RE NOT INNED ARE.

IF YEAR OVER YEAR THE DISTRICT IS DEALING WITH DECLINING ENROLMENT THEN ALL THING BEING EQUAL THE NUMBER OF STUDENT THAT ARE SHOWING UP EACH AND EVERY YEAR ARE DECLINING AS WELL.

IF WE GO FROM A THOUSAND STUDENTS TO 900 STUDENT OVER A YEAR WE CAN ONLY HAVE A THOUSAND SHOW UP TO SCHOOL BECAUSE WE HAVE 900 ENROLLED. WHY WE FOCUS ON ENROLMENT IT'S MUCH MORE NUANCED FOR SCHOOLS. IT'S REALLY ABOUT DAILY ATTENDANCE. WHAT THIS GRAPHIC DOESN'T SHOW IS THE RATE. THE STATE WIDE AVERAGE WAS 95%.

SO FOR ANY GIVEN DAY FOR EVERY HUNDRED STUDENTS, 95 OF THOSE WOULD BE PRESENT. POST PANDEMIC THAT RATE DROPPED VERY SIGNIFICANTLY COMING OUT OF THE PANDEMIC TO ABOUT 91% STATE WIDE. SO 4% DROP.

SO ON ANY GIVEN DAY THOSE SAME HUNDRED STUDENTS ONLY 91 ARE PRESENT. WELL, BECAUSE OF THE WAY THAT THE STATE FUNDS SCHOOLS, WE ARE FUNDED ON THAT NUMBER NOT ON THE

[00:45:12]

AND THEY MADE A POLICY DECISION WHERE THEY SAID HEY, WE WANT TO INCENTIVIZE IT. THEY SHIFTED THE FUNDING INSTEAD OF BASED OFF ENROLMENT THEY FUNDED IT OFF OF AVERAGE DAILY ATTENDANCE. SO THAT POLICY HAS BEEN AROUND FOR 30 PLUS YEARS NOW. WHEN WE SEE A BILL LIKE THIS COMING ACROSS, IT REALLY IS THE PENDULUM STARTING TO SWING BACK BUT I DON'T THINK THERE'S AN APPETITE STATE-WIDE TO MOVE TO AN ENROLMENT BASED FUNDING. SO WITH THAT DECLINE IN ENROLMENT, WE WILL HAVE A SUBSEQUENT DECLINE IN AVERAGE DAILY ATTENDANCE. SO AVERAGE DAILY ATTENDANCE LOOKS AT THE RATE AT WHICH A STUDENT SHOWS UP TO SCHOOL OVER THE WHOLE YEAR. EACH STUDENT CAN GENERATE ONE ADA. AND AS A STUDENT IS ABSENT, THAT ADA NUMBER GETS PRORATED DOWN. A GOOD TARGET IS 95% ABOVE STATE AVERAGE RIGHT NOW. BUT AS THAT NUMBER DROPS, THE ONLY THING THAT DROPS FOR A SCHOOL DISTRICT IS ITS REVENUES BECAUSE WHEN WE THINK ABOUT HOW WE RUN AND STAFF A SCHOOL, WE STAFF CLASSROOM BASED ON ENROLMENT.

THE WE STAFF TEACHERS BASED ON ENROLMENT.

ALL OF THESE THINGS ARE BASED ON ENROLMENT ON THE EXPENSE SIDE YET WHEN WE LOOK AT THE REVENUE SIDE, THE MAJORITY OF REVENUES ARE BASED ON AVERAGE DAILY ATTENDANCE.

ROUGH ESTIMATE A DISTRICT LOSE ABOUT $90 FOR EACH STUDENT ABSENT. A QUESTION I ALWAYS GET IS HOW CAN WE AS TRUSTEES INCREASE THE REVENUES FOR OUR DISTRICT? WHAT CAN WE DO? AND I WOULD SAY MAKE SURE YOU'RE COMMUNICATING WITH YOUR EDUCATIONAL PARTNERS THE IMPORTANCE OF SHOWING UP TO SCHOOL EACH AND EVERY DAY.

1A IS STUDENTS LEARN BETTER WHEN THEY'RE IN CLASS.

THERE'S ALL KINDS OF RESEARCH THAT SUPPORTS THAT.

BUT 1B IF A STUDENT MISSES THE ENTIRE DAY AND DON'T PARTICIPATE THROUGH INDEPENDENT STUDY, THE DISTRICT HAS NOW LOST OUT ON $90. DOESN'T SEEM LIKE A LOT FOR ONE STUDENT FOR ONE DAY BUT THAT'S THE DIFFERENCE BETWEEN A STUDENT AT A 95% ATTENDANCE RATE AND A 91% ATTENDANCE RATE DISTRICT-WIDE WHEN YOU LOOK AT 10,000 STUDENTS, THAT'S IMPACTFUL. WE'RE TALKING ABOUT MILLIONS AND MILLIONS OF DOLLARS JUST BECAUSE STUDENTS RESPECT NOT SHOWING UP EACH AND EVERY DAY. SO WHEN THEY SHOW UP YOU SAY HOW ARE YOU MY LITTLE $90 BILL. I'M KIDDING.

I'M BEING FLIPPANT BUT REALLY WANT TO HAMMER HOME THE IMPORTANCE FROM A FINANCIAL STANDPOINT OF STUDENT SHOWING UP EACH AND EVERY DAY. IT IS IMPACTFUL.

I WILL HAVE AN ILLUSTRATIVE EXAMPLE IN A COUPLE OF SLIDES BUT WANT TO TALK ABOUT THE COMPONENTS OF IT.

WHEN WE'RE COMPARING THE AMOUNT OF DOLLARS WE ARE GETTING THROUGH THE LCFF YEAR OVER YEAR, SO THE MOST TALKED ABOUT ITEM AT THE STATE LEVEL WHEN WE TALK ABOUT THE LOCAL CONTROL FORMULA IS THE COST OF LIVING ADJUSTMENT.

THIS IS A NUMBER THAT IS CALCULATED USING FEDERALLY AGGREGATED DATA POINTS WHICH LOOKS AT SPENDING OF STATE AND LOCAL GOVERNMENTS NATION-WIDE. EVEN THOUGH IT'S A NUMBER THAT WE THROW AROUND IN CALIFORNIA, WHAT'S THE COLA.

IT'S NOT A NUMBER THAT THE LEGISLATURE YOU COMES UP WITH.

IT'S A MATHEMATICALLY DERIVED NUMBER BASED ON STATE AND LOCAL SPENDING NATION-WIDE. WHEN WE HEAR THAT THE GOVERNOR AND LEGISLATURE HAVE PROVIDED A COLA, SO IN 25, 26 IT WAS 2.3.

IN 26, 27 THE COLA IS 2.87. THAT DOES NOT THEN TRANSLATE INTO A POT OF MONEY ARC INCREASE IN REVENUES EQUAL TO THE COLA.

WHAT THE COLA DOES IS IT INCREASES THE FUNDING PER STUDENT THAT THE STATE WILL GIVE TO US.

IT'S AN INCREASE IN THE FUNDING PER STUDENT.

WELL, IF WE HAVE LESS STUDENT YEAR OVER YEAR THAT'S GOING TO

[00:50:03]

OKAY. SO THE APPLICATION OF COLA FROM 24, 25 THE STATE PROVIDES A BASE GRANT AMOUNT.

WHEREVER A STUDENT GOES TO SCHOOL IF A KINDERGARTENER SHOWS UP EACH AND EVERY DAY THEY WOULD HAVE GENERATED $10,025 FOR THEIR LEA. IN 25, 26 THEY WOULD GENERATE $10,256 BECAUSE THE STATE PROVIDED A COLA.

IT'S AN INCREASE IN THE AMOUNT OF FUNDING PER STUDENT.

BUT AGAIN IF THERE'S FEWER STUDENTS THAT'S A LOWER NUMBER THAT WE WOULD MULTIPLY TIMES THE FUNDINGMENT A.

YEAH. >> JUST A QUICK QUESTION VERY BASIC. WHEN THE COLA IS GIVEN OR THE PERCENTAGE IS GIVEN TO THE SCHOOL DISTRICTS, IS IT MANDATORY TO GO INTO OUR UNRESTRICTED FUNDING OR RESTRICTED FUNDING? OR HOW IS THAT CALCULATED? OR DO WE AS A SCHOOL DISTRICT GET TO DECIDE?

>> YEAH, NO. REALLY GOOD QUESTION.

THE COLA, SO THIS INCREASE IN FUNDING IS APPLIED TO DIFFERENT FUNDING SOURCES. SO I MENTION WE HAVE UNRESTRICTED FUNDING SOURCES AND RESTRICTED FUNDING SOURCES.

SO AN INCREASE TO THE LOCAL CONTROL FUNDING FORMULA, THE COLA IS GOING TO GO INTO OUR UNRESTRICTED DOLLARS.

AN INCREASE IN SPECIAL EDUCATION FUNDING IS GOING TO GO INTO OUR RESTRICTED DOLLARS BECAUSE THAT FUNDING SOURCE IS RESTRICTED.

SO IT DEPENDS WHAT IT'S APPLIED TO.

SO AGAIN DIFFERENT FUNDING LEVELS.

THIS HIGHLIGHTS THERE IS THE EQUITY COMPONENT OF THE FUNDING FORMULA. A HIGH SCHOOL DISTRICT WHICH SERVES ONLY GRADES 9 THROUGH 12 OR 7 THROUGH 12 IS GETTING MUCH MORE ON A PER STUDENT BAYIS THAN AN ELEMENTARY SCHOOL DISTRICT WHICH IS SERVING GRADES K THROUGH 6 OR K THROUGH 8.

THE STATE DID THAT INTENTIONALLY.

THE SECOND COMPONENT IS THIS NOTION OF THE UNDUPLICATED PUPIL PERCENTAGE. EVERY YEAR IN OCTOBER PRIOR TO THAT THERE'S A BIG PUSH FOR FAMILIES TO FILL OUT SOCIOECONOMIC STATUS FORMS TO IDENTIFY IF WE HAVE STUDENTS THAT ARE LOWER SOCIOECONOMIC STATUS.

WE GET THAT SO THEY CAN HAVE ADDITIONAL BENEFITS PROVIDED TO THEM. CERTAINLY SINCE THE STATE PROVIDED FREE BREAKFAST AND LUNCH THE REASON HAS DWINDLED.

THERE'S NOT AS MUCH OF A REASON FOR FAMILIES TO COMPLETE THOSE FORMS. BUT NONETHELESS THE STUDENTS WE IDENTIFY THAT ARE SOCIOECONOMIC, ALSO STUDENTS THAT ARE ELIGIBLE FOR ENGLISH LEARNER SERVICES AND FOSTER YOUTH SO THOSE THREE BUCKET, THOSE ARE OUR UNDUPLICATED PUPILS.

THE HIGHER THE PERCENTAGE OR THE GREATER THE CONCENTRATION WE HAVE, THE MORE MONEY WE GET M WE THINK ABOUT HOW TO INCREASE THE FUNDING FOR OUR SCHOOLS AND OUR DISTRICT, ONE, STUDENTS IF THEY'RE NOT SICK YOU NEED TO SHOW UP AND IF YOU ARE A FAMILY THAT'S LOW SOCIOECONOMIC, PLEASE LET US KNOW.

PLEASE COMPLETE THAT FORM EACH AND EVERY YEAR.

IT USED TO BE KNOWN AS THE APPLICATION FOR FREE REDUCED PRICE MEALS. I NOW SEE THEM REBRANDING THAT FORM A THE FULL FUNDING FORM SO GETTING AWAY FROM THIS GOVERNMENT BEING USED IN A REALLY PERVERSE MANNER.

THIS IS REALLY A FORM HELPING US GET THE MOST MONEY WE CAN POSSIBLY GET FOR OUR SCHOOLS EACH AND EVERY YEAR.

THE STATE WIDE AVERAGE IS ABOUT 63%.

SO IF YOU TOOK A DISTRICT THAT HAS A HUNDRED KIDS, 63 WOULD BE IN ONE OF THOSE CATEGORIES. CERTAINLY WE HAVE A BROAD RANGE.

WE HAVE A DISTRICT THAT HAS ABOUT 3%.

SO ONLY 3 OUT OF EVERY HUNDRED STUDENTS WOULD BE UNDUPLICATED.

I WAS IN A DISTRICT IN THE CENTRAL VALLEY A NUMBER OF YEARS BACK. THEIR PERCENTAGE WAS 99 AND A HALF. SO REALLY BROAD RANGE THROUGHOUT THE STATE OF CALIFORNIA. NEARLY EVERY CHILD IN THAT DISTRICT WAS IDENTIFIED WITH CATEGORIES.

STATE PROVIDES ADDITIONAL FUNDING.

SO I'M GONNA ASK MY FRIEND OVER YEAR.

WE DID A TEST RUN EARLIER, SO WE'RE GONNA NAIL THIS.

I WANT TO PROVIDE THE IMPACT OF STUDENTS SHOWING UP EVERY DAY BUT ALSO CAPTURING ALL OF THE STUDENTS THAT SHOULD SHOW UP AS AN UNDUPLICATED PUPIL. THIS IS A SEPARATE DOCUMENT AND

[00:55:03]

EACH STUDENT IN THAT K3 DISTRICT CAN GENERATE UP TO $11,823 PER PUPIL. WHEN WE PUT IT IN THE HUNDRED, NOTHING POP OUT. WHY IS THAT? WE DON'T HAVE THE RATE. THOSE KIDDOS ARE JUST INNED ARE.

IF NONE OF THEM SHOWED UP THROUGHOUT THE YEAR, THE DISTRICT WOULDN'T RECEIVE ANY MONEY BECAUSE IT'S ABOUT THE RATE AT WHICH THEY SHOW UP. SO LET'S SAY THE STUDENT SHOWED UP 95% OF THE TIME. THAT WILL GIVE US A ADA OF 95.

JUST BASED OFF THAT THIS PARTICULAR DISTRICT WOULD RECEIVE OVER A MILLION DOLLARS IN FUND FROM THE STATE OF CALIFORNIA BECAUSE WE ARE RECORDING ATTENDANCE EACH AND EVERY DAY. THAT IS WHY IT IS SO IMPORTANT TO CAPTURE ATTENDANCE WHETHER A KIDDO SHOWS UP FOR THE WHOLE DAY OR ONE MINUTE. IT COUNTS THE SAME.

THERE IS NO PRORATEDMENT A THROUGHOUT THE DAY.

SO IF YEAH. >> AS A TEACHERF A TEACHER SEES A STUDENT BUT THEY'RE NOT IN SESSION YET, DOES THAT STILL

COUNT AS THE CHILD BEING THERE? >> NO.

I KNOW. TO BE COUNTED AS HERE, THE STUDENT HAS TO BE UNDER THE IMMEDIATE CONTROL OF A CERTIFIED EMPLOYEE AND ENGAGED IN EDUCATIONAL WORK APPROPRIATE FOR THEIR LEVEL. THEY'RE SITTING IN THE SEAT.

WE CHECKED OFF THE FIRST BOX. THE INFERENCE IS WE WILL CHECK THE SECOND BOX ONCE WE FINISH ATTENDANCE.

IF THAT STUDENT IS IN YOUR FIRST PERIOD CLASS SAW THEM ROAMING THE HALLS AND NEVER MADE IT, THAT STUDENT SHOULD NOT BE MARKED PRESENT FOR THAT FIRST PERIOD CLASS.

BUT IF A STUDENT SHOWS UP 15 MINUTES LATE AND GO TO THE OFFICE AND THEY GIVE THE OFFICE ASSISTANT THEIR PARENT NOTE OR THEY CHECK IN OR WHAT HAVE YOU, THE OFFICE GIVES THE STUDENT A TARDY SLIP AND GOES TO CLASSTIOUS THE STUDENT IS LATE.

WE MIGHT HAVE SOME CHRONIC ABSENTEEISM CHALLENGE OR TRUANCY CHALLENGE IS THE TERM. SOME TRUANCY CHALLENGE.

BUT A TARDY STUDENT IS STILL A PRESENT STUDENT IN THE EYES OF THE STATE. SO EACH TIME IF A TEACHER MARKS A STUDENT ABSENT BUT COMES THROUGH AND IS IS TARDY, THOSE SLIPS ARE $90 BILLS. IF THE SITE STAFF IS NOT CHANGING THE STUDENT FROM ABSENT TO TARDY, WE HAVE JUST PENALIZED OURSELF $90. WE WANT TO MAKE SURE THAT STUDENT IS REFLECTED ACCURATELY IN THE SYSTEM.

JUST BE THERE FOR ONE PERIOD THEN GO TO THE DENTIST OR WHAT HAVE YOU. COULD BE THE SECOND PERIOD BUT

JUST PICK ONE. >> WE WANT TO BE CAREFUL HOW WE

SAY THAT. >> YES.

DON'T CUT SCHOOL, CHILDREN. HAS TO BE A VALID REASON.

BUT I JUST AGAIN APPRECIATE THAT, DR. SIMON.

JUST HIGHLIGHTING THE IMPORTANCE OF STUDENT SHOWING UP FROM A FUNDING PERSPECTIVE. SO IN THIS INSTANCE, NONE OF THEM ARE UNDUPLICATED. NOW INSTEAD OF THE 95 WHICH IS THE 95% THAT WAS THE STATE-WIDE AVERAGE FOR THE RATE THAT STUDENT SHOWED UP TO SCHOOL, LET'S CHANGE THAT NUMBER TO 91.

SO SAME NUMBER OF STUDENTS BUT THEY'RE ONLY SHOWING UP 91% OF THE TIME. THE FUNDING JUST DROPPED BY 4%.

IT WENT FROM A MILLION 70 TO A MILLION 30.

THIS DISTRICT STILL HAS A HUNDRED KIDS INNED ARE.

STILL HAS THE SAME TEACHERS AND UTILITY BILLS.

ALL THE COSTS ARE THE SAME. BUT THE REVENUE DROPPED JUST BECAUSE THE STUDENTS AREN'T SHOWING UP.

SO IT REALLY HIGHLIGHTS THE IMPORTANCE.

LET'S CHANGE THAT BACK TO 95. NOW WE START TO INCORPORATE THE EQUITY COMPONENT WHICH IS THE PERCENTAGE OF STUDENT THAT ARE UNDUPLICATED. SO LET'S SAY ONLY 10 OF OUR STUDENTS ENROLLED ARE UNDUPLICATED WHICH WOULD BE 10%.

WHAT THE STATE SAYS IS FOR THOSE TEN STUDENTS WE WILL GIVE YOU ADDITIONAL FUNDING CALLED SUPPLEMENTAL FUNDING.

OKAY? YOU'RE NOT GOING TO GET ANY CONCENTRATION FUNDING BECAUSE YOU HAVEN'T HIT THE THRESHOLD AT WHICH YOU ARE ELIGIBLE FOR THAT WHICH IS 55% OF YOUR STUDENTS.

[01:00:02]

I LIKE THAT NUMBER TOO. JUST FROM 10 TO 40.

MORE FUNDING. SO WHAT WE ARE SAYING IS WE ARE AS STAFF IDENTIFYING STUDENTS WHO ARE ELIGIBLE FOR FREE REDUCED PRICE MEALS, ENGLISH LEARNERS OR FOSTER YOUTH.

WE'RE JUST IDENTIFYING THEM. AND THAT IS WHAT IS INCREASING THIS NUMBER RIGHT HERE. LET'S GO TO 60%.

SO ALL THINGS BEING EQUAL HUNDRED STUDENTS ENROL, 95ADA.

THAT BASE FUNDING LINE HASN'T CHANGED.

BUT NOW THROUGH SUPPLEMENTAL AND CONCENTRATION GRANT FUNDING WE ARE GETTING ANOTHER $163,000 EVERY YEAR.

THOSE ARE ADDITIONAL DOLLARS TARGETED THROUGH OUR LOCAL CONTROL AND ACCOUNTABILITY PLAN WHICH IS WHERE THEY HAVE TO ARTICULATE HOW IT IS SPENT TO INCREASE SERVICES SPECIFICALLY FOR THESE STUDENTS. BUT IT'S EXTRA MONEY.

THOSE ARE THE ELEMENTARY COUNCILLORS THAT NOW WE CAN AFFORD. GO UP TO 90% PLEASE.

SO WE WENT FROM A DISTRICT WITH NO UNDUPLICATED PUPILS TO NOW THIS DISTRICT ARE 90 OUT OF A HUNDRED ARE UNDUPLICATED.

WENT UP 50%. THE FROM JUST OVER A MILLION TO NOW OVER 1.5 MILLION JUST BECAUSE WE ARE IDENTIFYING OPPORTUNITIES WHO NEED THOSE SERVICES.

REALLY, REALLY IMPACTFUL FOR A LEA AND REALLY REINFORCING WHY THE COLLECTION OF THOSE FORMS AND THE IDENTIFICATION OF STUDENTS WHO ARE ENGLISH LEARNERS, WE WANT TO CAPTURE THOSE STUDENT EACH AND EVERY YEAR BECAUSE THERE'S A SIGNIFICANT REVENUE STREAM THAT IS ASSOCIATED WITH THAT.

>> QUICK QUESTION WHAT IS OUR NUMBER RIGHT NOW?

>> FOR 25, 26 IT WAS 79%. COOL.

THANK YOU. >> ALL RIGHT.

THANK YOU. LET'S GO BACK TO THE PRESENTATION. ANY QUESTIONS ON THE LCFF COMPONENT? ANY QUESTIONS ON APPLICATION OF COLA, ADA, UNDUPLICATED PUPIL PERCENT.

THOSE ARE THE THREE MAIN COMPONENTS THAT DICTATE WHAT REVENUES ARE. THE TO REINFORCE WHEN STAFF PROJECTS THAT NUMBER FOR 26, 27 THEY'RE MAKING ASSUMPTIONS.

WHAT IS THE COLA FOR THE YEAR? WHAT IS THE ADA GOING TO BE FOR THE YEAR. WHAT IS THE UNDUPLICATED PUPIL PERCENT GOING TO BE FOR THE YEAR.

WE WON'T KNOW THAT UNTIL THE FIRST WEDNESDAY IN OCTOBER.

WE TAKE A SNAP SHOT AND EVEN THEN THAT'S NOT CERTIFIED WITH THE STATE. THE AVERAGE DAILY ATTENDANCE NUMBER WE WON'T KNOW UNTIL NEXT APRIL WHEN STAFF SENDS TO CALIFORNIA. JUST REINFORCING THOSE 26, 27 NUMBERS WILL CHANGE BECAUSE OF THE ASSUMPTIONS THAT GO INTO IT.

THAT'S JUST ONE EXAMPLE WITH THREE DIFFERENT COMPONENTS.

I THOUGHT YOU WERE GOING FOR THE MIC.

OKAY. SO GOING THROUGH THE REVENUE SECTION. I SPENT A LOT OF TIME.

I PROMISE I WILL NOT SPEND AS MUCH TIME ON THE OTHER ONES.

JUST BASED ON THE M MAGNITUDE OF THAT NUMBER, IT IS IMPORTANT TO UNDERSTAND WHAT GOES INTO THAT AND THE AMOUNT OF ASSUMPTIONS THAT GO ALONG WITH IT. NOW LOOKING AT THE FEDERAL REVENUE. YOU CAN SEE FOR THE DISTRICT NONE OF THE FEDERAL DOLLAR ARE UNRESTRICTED.

THAT IS NOT UNCOMMON. MOST DISTRICTS IN THE STATE OF CALIFORNIA THE FEDERAL DOLLARS THAT COME IN HAVE TO BE SPENT FOR A SPECIFIC PURPOSE. MEANING THEY HAVE TO GO IN THE RESTRICTED COLUMN. THOSE WE HAVE ALREADY SPOKE TO A LITTLE BIT BUT JUST TO PUT SOME WORDS WITH THE ORAL WORD, A MAJORITY OF THOSE DOLLARS COME FROM THE FEDERAL GOVERNMENT, THE DIFFERENT TITLE PROGRAMS, SO TITLE ONE DOLLARS HAVE TO BE SPENT FOR STUDENTS THAT ARE FALLING BEHIND.

TITLE 2 IS PROFESSIONAL DEVELOPMENT.

[01:05:02]

WE TALKED ABOUT SPECIAL EDUCATION.

THE FEDERAL SPECIAL EDUCATION DOLLARS WOULD BE ON THAT ROW.

WE WERE IN A PERIOD WHERE WE WERE GETTING QUITE A BIT.

WE I'M TALKING STATE WIDE. WERE GETTING QUITE A BIT OF FEDERAL ONE-TIME DOLLAR RELATED TO THE PANDEMIC.

JUST TRIGGERED A THOUGHT. THE WHEN WE LOOK AT THE SACS DOCUMENT, THIS TELLS US IF IT UNRESTRICTED OR RESTRICTED AND WHERE THE MONEY IS COMING FROM, LCFF, STATE, OR LOCAL.

WHAT THIS DOESN'T ELSE TELUS IS IS THE MONEY ONE-TIME OR IS IT ONGOING? SO ONE THING THAT I SHARE AS A BEST PRACTICE WITH BOARDS IS THAT AS STAFF IS TALKING ABOUT THE ASSUMPTIONS AND REVENUE SOURCE HIGHLIGHTING HOW MUCH OF THOSE DOLLARS ARE ONE TIME VERSUS ONGOING IS AN IMPORTANT CONVERSATION POINT ESPECIALLY WHEN WE LOOK AT WHAT HAS HAPPENED OVER THE LAST FEW YEARS AT THE STATE LEVEL.

THE STATE HAS PROVIDED REALLY HISTORIC LEVELS OF ONE-TIME FUNDING GOING BACK TO THE 22, 23 YEAR.

THAT WAS MORE THAN $11 BILLION. THERE'S $6 BILLION IN ONE-TIME DOLLARS. SO REALLY HIGHLIGHTING HOW MUCH

GOES EVERY YEAR. >> BEFORE YOU SWITCH QUESTIONS.

THE I SEE THE UNRESTRICTED AND YOU MIGHT HAVE JUST ANSWERED THIS, BUT I NEED YOU TO GIVE IT TO ME ONE MORE TIME.

THE IN 25, 26 THE RESTRICTED IS 7537, RIGHT?

BUT IN 26, 27 BUDGET IT'S 7. >> POINT ONE.

>> POINT ONE. WHAT MAKES THAT CHANGE IF UNRESTRICTED HAS TO BE USED IN A CERTAIN WAY AS A FUNDING SOURCE? LIKE WHEN DO WE KNOW WHEN THAT NUMBER IS NOT GOING TO CHANGE? OR IS IT CONTINUOUSLY CHANGED BECAUSE OF WHATEVER REASON?

>> I GOTCHA. REALLY GOOD QUESTION.

SO THERE'S NO DOLLARS THE GOVERNMENT RECEIVES THAT IS.

>> I MEAN UNDER RESTRICTED. YEAH.

>> ON THE RESTRICTED SIDE, THE DECREASE CAN HAPPEN FOR ONE OF TWO REASONS. THE MAIN REASONS.

EITHER WE ARE GETTING LESS FEDERAL FUNDING YEAR OVER YEAR.

SO THERE WAS A LOT OF HOOPLA LAST YEAR, AND IT IS CONTINUING THIS YEAR WITH THE FEDERAL GOVERNMENT, REALLY THE PRESIDENT THREATENING TO CHANGE THE WAY THAT FUNDING IS PROVIDED TO SCHOOLS. REALLY TARGETING THOSE TITLE FUNDS SPECIFIC TO ENGLISH LANGUAGE LEARNERS.

SO THAT COULD BE A REASON FOR THE DECREASE.

THE OTHER REASON COULD BE IN 25, 26 THERE WAS SOME UNSPENT MONEY FROM THE PREVIOUS YEAR THAT IS BEING RECOGNIZED IN 25, 26.

AND THAT MONEY IS NOT CARRYING OVER TO 26, 27.

THERE WAS NO REDUCTIONS NOW. THE FUNDING WAS REALLY HELD FLAT. SO WE SHOULDN'T BE EXPECTING A DECLINE IN FEDERAL FUNDING FOR THE 26, 27 YEAR.

THE PRESIDENT HAS ALREADY UNVEILED HIS THOUGHTS FOR THE NEXT CONGRESSIONAL BUDGET HE IS TRYING TO BRING BACK CUTS TO THE FEDERAL REVENUES. IT'SAL ARE THE SAME CUTS THAT HE PROPOSED THIS LAST GO AROUND THAT GOT REJECTED BY CONGRESS.

>> SO THAT BRINGS ME TO -- THANK YOU FOR THAT.

THAT BRINGS ME TO THE CNF COLUMN, THE VERY, VERY LAST COLUMN THAT HANNA NEGATIVE 5.8 AND THEN TWO LINES DOWN IT'S NEGATIVE 58.7% IS THIS THE EVER CHANGING NUMBER YOU'RE TALKING ABOUT BASED ON PRESIDENTIAL WANT OR IDIOCIES.

SO IF WE PROJECT WE'RE GETTING A CERTAIN AMOUNT WE ARE REALLY GETTING A NEGATIVE OF THE NUMBER WE THOUGHT? OR IS THAT A ROLLOVER THINGS FROM THAT?

>> THE ONE WE'RE LOOKING AT IS WITH FEDERAL DOLLARS.

THE ONE DOWN IS LOCALLY WHICH WE'LL GET INTO THE DOLLARS.

[01:10:02]

>> LINE 4 NOW? >> YEAH.

SEPARATE AND APART FROM THE FEDERAL GOVERNMENT.

>> OKAY. SO LINE 2 IS THAT JUST THE DIFFERENCE IN THE ROLL FOR ASSUMING WHAT IT WAS? OR IS THAT A REFLECTION OF THE NEGATIVE PERCENTAGE.

>> FOR 24, 25 FOR 25, 26 INTO 26, 27.

THANK YOU. >> WHEN IT COMES TO REVENUE, HOW DOES IT WORK WITH OUR ADULT TRANSITION CENTRE.

DOES IT GO TO 88. >> IT IS BY ADA.

>> I WON'T GO BACKWARDS BUT IT'S IMPORTANT THEY ATTEND SCHOOL AS WELL AND WHEN WE TALK ABOUT THE STATE REVENUES, THE STATE PROVIDES A VERY SIGNIFICANT AMOUNT OF DOLLARS SPECIFIC FOR SPECIFIC EDUCATION, AND THAT NUMBER ALSO FEEDS INTO THE FUNDING AT THE SPECIAL EDUCATION.

WHAT IS THAT NUMBER? I KNOW YOU WENT UP TO 12TH GRADE. IS IT AT THAT LEVEL?

>> IT'S UNGRADED BUT WOULD BE A PART OF THAT 12TH GRADE LEVEL

THERE. >> OKAY, COOL.

THANK YOU. >> LET'S TALK ABOUT THE FEDERAL AND THE STATE IN A SECOND AND SPRINKLE INS WHAT HAPPENING FOR THE STATE THESE ARE JUST REITERATING THE VOLUME OFFER ONE-TIME FEDERAL DOLLARS. THISES JUST THE STATE OF CALIFORNIA. MORE THAN $21 BILLION OVER A THREE-YEAR PERIOD. LOOKING AT THE STATE ROW.

THIS UNRESTRICTED. SO THE LCFF COMES FROM THE STATE. THEY LIKE TO SEGREGATE OUT THE LCFF BUT IT'S SUCH A SIGNIFICANT INVESTMENT.

SO THAT COMES FROM THE STATE. ALSO IT COMES FROM THE STATE OF CALIFORNIA UNDER THE UMBRELLA OF PROPOSITION 98.

THE GOVERNOR AND LEGISLATURE GOVERNS HOW MUCH WE GET.

THAT DICTATE HOW IT COMES TO US. AGAIN THE MAJORITY OF DOLLARS IN THE OTHER STATE REVENUE IS RESTRICTED.

SO IN THIS PARTICULAR LINE AS A TRUSTEE THE THING THAT WOULD GRAB MY ATTENTION IS WOW, A BIG INCREASE YEAR OVER YEAR IN OTHER STATE REVENUES. WHEN WE LOOK AT THE FAR RIGHT ALMOST A 20% INCREASE. IF WE BREAK OUT THAT INCREASE BETWEEN THE UNRESTRICTED AND THE RESTRICTED, REALLY NO CHANGE ON THE UNRESTRICTED SIDE. THE MAJORITY OF THE CHANGE IS HAPPENING ON THE RESTRICTED SIDE.

FROM 35 MILLION UP TO 42 MILLION.

SO THE QUESTION BECOMES WHAT IS CAUSING THAT CHANGE.

SO IF YOU'RE FOLLOWING WHAT WAS GOING ON AT THE STATE LEVELLISH THE STATE HAD A FEW DIFFERENT IDEA FOR HOW TO SPEND THE ADDITIONAL IDEAS THAT THEY WERE RECEIVING.

ONE OF THOSE WAS ANOTHER TRANCHES.

ONE WAS THE EMERGENCY BLOCK GRANT.

WE GOT ANOTHER WINDFALL OF THOSE IN 26, 27.

THERE WAS ALSO THE STUDENT SUPPORT AND PROFESSIONAL DEVELOPMENT BLOCK GRANT. WE CAN'T SEE THAT LEVEL OF DETAIL IN THE FORM. BUT IF YOU'RE FOLLOWING WHAT IS GOING TO GET HIM ABOARD AT THE STATE LEVEL WHETHER IT'S COMMUNICATIONS WITH CABINET. IF YOU SEE EMAILS COMING IN WITH HIGHLIGHT THAT ARE IN THE STATE BUDGET, CONNECTING THE DOTS BETWEEN THOSE PEE OF INFORMATION WHERE HEY, THE STATE ENACTED A BUDGET WITH PRETTY SIGNIFICANT ONE-TIME INVESTMENTS.

THE WHEN STAFF THEN PRESENTS THE ADOPTED BUDGET, THERE SHOULD BE A CORE LAG BETWEEN THE THINGS STAFF IS SAYING AND THE INFORMATION YOU'RE SEEING COMING IN FROM CSPA.

THE DUST HAS NOW SETTLED FOR SIGNIFICANT INVESTMENTS ABOUT 5.7 BILLION BETWEEN THOSE. THERE IS ALSO A SIGNIFICANT INCREASE IN SPECIAL EDUCATION FUNDING BY THE GOVERNOR AND THE LEGISLATURE. SPECIAL EDUCATION FUNDING

[01:15:01]

WE WANT IT TO BE USED FOR SPECIAL EDUCATION.

SO THEY'RE TELLING US HOW THE MONEY SHOULD BE SPENT SO IT'S COMING IN AS A RESTRICTED STATE REVENUE WHEN WE LOOK AT OUR FINANCIAL DOCUMENTS. SO THOSE ARE THE FREE TAKE WASTE. THERE WAS A LITANY OF OTHER ONE-TIME REVENUES BUT THOSE WERE THE BIG ONES.

SOME OF THE ONES WE SEE AS AN EXPANDED OPPORTUNITY.

THAT AND SPECIAL ED ARE NECK AND NECK RIGHT NOW BUT THAT'S THE SECOND LARGEST INVESTMENT BY THE STATE OTHER THAN THE LOCAL FUNDING FORMULA MORE THAN $4.6 BILLION EVERY YEAR.

I MENTIONED THE LOTTERY. SOME OF THAT COMES IN AS UNRESTRICTED OR RESTRICTED. IT'S ONLY 1% OF OVERALL REVENUES. EVEN AS JACKPOTS FLUCTUATE, IT'S NOT A WINFALL FOR US IN SCHOOLS. WE APPRECIATE IT BUT NOT A BIG WINDFALL WITH RESPECT TO DOLLARS.

SO AGAIN THAT SECTION ON THE CHART THERE WE CAN SEE WHAT'S RESTRICTED VERSUS UNRESTRICTED. WITHIN THAT 42 MILLION, IT WILL BE PRETTY MUCH ALL OF THESE INCLUDED.

STAFF WOULD NEED TO PROVIDE YOU WITH THE BREAKDOWN BUT KNOW IT IS AN AGGREGATE. THEY EACH ALLOW THEIR ALLOWABLE USE. THAT'S WHY THEY'RE RESTRICTED.

THE FINAL PIECE IS REVENUES RAISED LOCALLY.

THIS IS A REGULATION THAT HAS THE MOST FUNDING STREAMS. AS WE ARE MAINTAINING OUR CASH IN THE TREASURY WE EARN INTEREST AS WELL IN THE COUNTY TREASURY. IF WE ARE CHARGING FOR OUTSIDE GROUPS WE CAN COLLECT FACILITY USE FEES.

SOME LEAS HAVE PARTIAL TAXES WHERE IT'S OPERATIONAL COS AND JUST MISCELLANEOUS DONATIONS. SO WHILE IT'S COLLECTED LOCALLY THAT WOULD ALL GO IN THE REVENUE LINE ITEM.

SO WHERE DOES THE MONEY GO? WE NOW GO FROM THE REVENUE SIDE

TO THE EXPENSE SIDE. >> I DO HAVE A QUESTION ON THE PREVIOUS SLIDE. I KNOW THE MONEY COMES THROUGH.

>> YEAH. SO LAKO IS THE DISPERSER OF THE MONEY BUT DOES NOT DICTATE WHICH POT IT GOES INTO.

THEY WILL GET AN APPORTIONMENT FROM THE DEPARTMENT OF EDUCATION. THE MONEY FROM CDE, SOME OF IT WILL BE MONEY COME FROM THE STATE.

CDE THEN PORTIONS MONEY TO THE FEDERAL GOVERNMENT.

THEY HAYWIRE $5 MILLION ON BEHALF OF BELLFLOWER.

SOME OF IT IS STATE MONEY AND FEDERAL MONEY AND THEY WILL DEPOSIT IT INTO THE APPROPRIATE BUCKETS.

SO IT'S REFLECTED ACCORDINGLY. >> SO HOW LONG DOES THIS GO IN

THEIR ACCOUNTS? >> THAT I DO NOT KNOW.

>> THE REASON IS IF IT'S STAYING IN THERE FOR 20 DAYS, IS THAT MONEY ACCRUING INTEREST WHILE IT SITS THERE.

>> I DON'T KNOW THEIR PROCESS. THERE IS SOME TURN AROUND TIME.

I DON'T KNOW WHAT THE TURN AROUND TIME IS.

MENT I WOULD HAVE TO REACH OUT TO BETTER UNDERSTAND THEIR

PROCESS. >> I'M NOT AS FAMILIAR.

GENERALLY THEY DON'T HOLD IT AT LONG PERIODS OF TIME AND DO NOT TRANSFER INTEREST AS A GENERAL STATEMENT, BUT A A GENERAL STATEMENT THAT'S NOT TRUE OF LAKO.

>> SO NOT THAT WE KNOW OF RIGHT NOW, RIGHT, BUT IT COULD BE SITTING IN THAT ACCOUNT ACCRUING INTEREST BUT MAY NOT BE TRANSFERRED WITH THE INTEREST TO US.

[01:20:02]

>> CORRECT. >> THE INTEREST EARNED IS GENERALLY WHAT'S EARNED ONCE IT GETS INTO THE ACCOUNT.

BUT AGAIN I DOUBT IT BECAUSE I HAVE NOT SEEN A COUNTY DO THAT.

BUT IT'S POSSIBLE THAT THEY DO. I WOULD HAVE TO FIND OUT THEIR PROCESS, AND THAT MIGHT BE A CHALLENGE.

I WOULD HAVE TO FIND OUT THEIR PROCESS AND HOW LONG THEY HOLD

THING. >> SO WE'RE AT THIS POINT JUST ASSUMING THEY KEEP THAT INTEREST THEMSELVES.

THANK YOU. >> I WILL AGREE THAT IT'S UNLIKELY IT WOULD BE TRANSFERRED.

THE MONEY THAT FLOWS FROM CDE TO THE COUNTY OFFICES IT PUTS OUT AN APPORTIONMENT SCHEDULE. THEY GENERALLY KNOW WHERE THE MONEY IS FLOWING IN ON A PRETTY ROUTINE BAYIS YEAR TO YEAR AND MONTH TO MONTH. MY EXPECTATION IS THEY EXPECT THE MONEY WILL BE COMING AND WON'T SITTING THERE VERY LONG.

OKAY. SO LET TRANSITION NOW INTO HOW TO WE SPEND OUR DOLLARS. SO WE ARE IN AN ORGANIZATION THAT OUR PRIMARY MISSION IS EDUCATING STUDENT.

DO WE WANT TO TAKE A COMFORT BREAK?

I KNOW I HAVE BEEN GOING FOR. >> NO YOU'RE FINE IF MY COLLEAGUES ARE FINE. I'M JUST GOING TO TAKE A

PERSONAL PRIVILEGE. >> SORRY.

I DIDN'T MEAN TO CALL YOU OUT BUT I WONDER IF OTHERS NEEDED.

>> IT SEEMS WE ALL NEED A BREAK. WE'LL TAKE

>> THANK YOU SO MUCH. WE ARE RECONVENED.

>> SO TRANSITIONING NOW INTO THE EXPENSES.

WHERE DOES THE MONEY GO. AGAIN WHEN WE LOOK AT THE PIE CERTIFIED SALARIES AND PRO BENEFIT, THOSE ARE OUR PEOPLE COSTS. SO I HAD MENTIONED BEFORE RESOURCE AND OBJECT ARE THE TWO MAIN FIELDS THAT WE WANT TO AT LEAST HAVE A BASIC UNDERSTANDING OF, AND I FAILED TO DIVE INTO THIS ON THE REVENUES BUT THINK IT'S MORE IMPACTFUL ON EXPENDITURES. WHEN YOU LOOK AT THE FORM THERE IN THE SECOND COLUMN, SO THE HEADER LABELED OBJECT CODES, YOU CAN SEE THAT OBJECT CODE RANGE THERE STARTING WITH THE 1,000 THROUGH 1999. SO YOU MIGHT HEAR THE ONES THROUGH THE THREES, THE PEOPLE COS, AS WHAT IT'S REFERRING TO.

THOSE ARE PERSONNEL EXPENDITURES.

SO ALL OF OUR CERTIFIED SALARIES, THE 1,000S.

EMPLOYEE BENEFITS 3,000S AND SO ON DOWN THE LIST.

SO WHEN WE LOOK AT THESE CATEGORIES, IT REALLY WE WANT TO LOOK AT THEM TOGETHER AS OUR PERSONNEL COS.

THERE IS FURTHER DETAIL FURTHER DOWN IN THE FORM IF YOU EVER WANTED TO GET SOME MORE INFORMATION FOR THE SAKE OF THE CONVERSATION TODAY WE WILL JUST LOOK AT THE PERSONNEL COST OVERALL. SO AGAIN WHAT GOES INTO EACH OF THESE CATEGORIES, CERTIFIED IS GOING TO BE ANY EMPLOYEE WORKING IN THE DISTRICT THAT REQUIRES A CREDENTIAL SO TEACHERS, ADMINISTRATORS THAT REQUIRE CREDENTIALS DIFFERENT FROM A CERTIFICATION. SOME LIKE OUR BUS DRIVERS REQUIRE THE CERTIFICATIONS, THE LICENCES, THEY WOULD BE IN A CLASSIFIED CAPACITY BECAUSE IT'S NOT TEACHER OR ADMINISTRATIVE CREDENTIAL. SO AGAIN CLASSIFIED SALARIES.

ANYONE THAT IS NOT IN A CREDENTIALED POSITION.

AND THEN THE BENEFIT SIDE I WOULD SAY KIND OF UNFORTUNATELY ALL OF THOSE COSTS ARE AGGREGATED.

THERE'S NO WAY FOR US TO BREAK OUT ULTRAWHO IS SPENT ON BENEFITS FOR EACH OF THE BARGAINING GROUPS WHEN WE LOOK AT THE STATE-WIDE DOCUMENT. THE STATE NEVER MADE THAT A PRIORITY TO BREAK THAT OUT, SO IT IS ALL AGGREGATE.

BUT WITHIN THOSE BENEFIT COSTS, WE CAN BREAK IT OUT AS FAR AS THE CATEGORIES. SO WHEN WE THINK ABOUT THE SALARIES CERTIFIED AND CLARIFIED CERTAINLY ALL OF THE BASE PAY, SO WHAT IS AN EMPLOYEE'S SALARY, HOW MUCH ARE THEY EARNING BASED ON THEIR HOURLY RATE? ANY EMPLOYEES WORKING EXTRA TIME, OVERTIME, ALL THOSE WOULD BE CATEGORIZED APPROPRIATELY.

A TEACHER WOULD BE CERTIFIED. OVERTIME WOULD BE CLASSIFIED.

ON THE BENEFITS SIDE WE HAVE BENEFITS REALLY IN TWO DIFFERENT CATEGORIES. THE BENEFITS THE FIRST FIVE ON THERE SERVES DISABILITY, WORKERS COMP AND UNEMPLOYMENT ARE CALLED STATUTORY BENEFITS MEANING THEY ARE DRIVEN BY PAYROLL.

SO FOR EVERY ONE DOLLAR OF PAYROLL THE STATUTORY BENEFITS ARE APPLIED AT THE PERCENTAGE RATE WHICH I WILL SHARE WITH YOU ON THE NEXT SLIDE. THE HEALTH AND WELFARE BENEFITS, ANY INFORMATION ON THE HEALTH AND WELFARE BENEFITS YOU SEE IN THE DISTRICTS FINANCIALS, THAT'S THE EMPLOYER'S CONTRIBUTION ON BEHALF OF THE EMPLOYEE. CERTAINLY EMPLOYEES ARE GOING TO HAVE THEIR OWN SHARE. THAT'S NOT REFLECTED ANYWHERE IN

[01:25:04]

JUST THE EMPLOYER. SO WHEN WE THINK ABOUT SALARY AND COMPENSATION, I THINK IT'S IMPORTANT TO RECOGNIZE THAT EVEN IF AN EMPLOYEE EARNS A SALARY COMPONENT, ONCE WE INCORPORATE THOSE STATUTORY BENEFITS THAT WE JUST TALKED ABOUT, THE COST FOR THE EMPLOYER GOES UP QUITE A BIT.

SO WHEN WE LOOK AT A CERTIFIED EMPLOYEE, THE EMPLOYER IN ADDITION TO THE SALARY IS MAKING CONTRIBUTIONS TO STATE UNEMPLOYMENT INSURANCE AS WELL AS WORKERS COMPENSATION.

SO FOR EVERY $10,000 IN SALARY THE DISTRICT IS ACTUALLY PAYING AN EFFECTIVE BENEFIT RATE OF 22.6% TO GET UP TO $2,260.

SO THAT'S THE FULL COST FOR AN EMPLOYEE EARNING 10,000.

THAT RATE GOES UP EVEN HIGHER FOR TWO REASONS.

ONE, THE CONTRIBUTION TO CALPERS IS SIGNIFICANTLY HIGHER THAN WHAT IS OWED TO CALSTERS FOR CERTIFIED EMPLOYEES.

THE AND CERTIFIED EMPLOYEES DO NOT EARN SOCIAL SECURITY.

THEY'RE NOT ELIGIBLE WHEREAS CLASSIFIED EMPLOYEES ARE ELIGIBLE. SO YOU CAN SEE THE DELTA THERE ON THAT LINE AS WELL. THAT SAME $10,000 PAYMENT TO A CLASSIFIED EMPLOYEE THE DISTRICT IS PAYING OUT OVER $13,600 ONCE YOU FACTOR IN ALL THE STATUTORY BENEFITS.

>> AND JUST TO CLARIFY, THESE NUMBERS ARE REAL NUMBERS FROM OUR DISTRICT? OR IS THIS THE GENERAL ONE?

>> THE ONE THAT I ESTIMATED ARE WORKERS COMP BUT THE REST ARE

STATUTORY RATE. >> WORKERS COMP IS ACTUALLY 3% SO IT'S A LITTLE BIT HIGHER THAN WHAT'S HERE.

>> OKAY. THANK YOU.

>> ALL RIGHT. JUST AN ACKNOWLEDGMENT THAT WHEN WE LOOK AT COST FOR THING WE WANT TO LOOK AT TOTAL COST.

AND THIS IS THE EMPLOYER SIDE. I ALSO WANT TO ACKNOWLEDGE THE EMPLOYEES HAVE COSTS AS WELL. CERTAINLY IF THEY ARE NEW TO THE RETIREMENTMENTS IS, THAT IMPACT THE AMOUNT COMING OUT OF THEIR PAYCHEQUES. THISES NOT REFLECTED HERE.

THIS JUST THE EMPLOYER'S SHARE OF IT.

SO THEN MOVING DOWN THROUGH THE DIFFERENT CATEGORIES HERE, THE BOOKS AND SUPPLIES, YOU KNOW, I HEAR THE TERM BOOKS AND SUPPLIES THROWN AROUND A LOT IN THE WORK THAT I DO, AND I DO THINK IT'S IMPORTANT THAT WHEN WE LOOK AT THE BOOKS AND SUPPLIES REALLY UNDERSTANDING WHAT GOES INTO THIS CATEGORY.

AND WE WILL HAVE A SIMILAR CONVERSATION ON THE SERVICES.

BOOKS AND SUPPLIES IT'S A VERY GENERIC TERM.

CERTAINLY EXITBOOKS, INSTRUCTIONAL MATERIALS ARE NO-BRAINERS COMMON SENSE. BUT OTHER THINGS THAT GO INTO THIS CATEGORY IF WE ARE DOING A TECHNOLOGY REFRESH, BUYING CHROMEBOOKS FOR STUDENTS, FILLING UP OUR SCHOOL BUSES, THE URINAL CAKES FOR THE BOYS BATHROOMS ALL OF THAT FALL INTO BOOKS AND SUPPLIES. THE WHEN WE LOOK AT THE SPENDING SO I'LL GO BACK, WHEN WE LOOK AT SPENDING, ANY SPENDING IN THE UNRESTRICTED COLUMN MEANS THAT WE ARE USING DOLLARS THAT WERE UNRESTRICTED TO PAY FOR THOSE COS.

IF IT IS IN THE RESTRICTED COLUMN THAT MEANS WE ARE USING RESTRICTED DOLLARS TO PAY FOR THOSE COSTS.

AGAIN WE CAN'T SEE OR AGGREGATE WHICH FUNDING SOURCE IS BEING USED BUT THAT'S THE DISTINCTION BETWEEN THOSE TWO NUMBERS THERE.

>> REAL QUICK CLARIFICATION, YOU MENTION FILLING UP OUR SCHOOL BUSES, WOULD THAT BE IN BOOKS AND SUPPLIES OR IS THAT OTHER

OPERATING EXPENDITURES? >> IF WE'RE GOING TO A GAS STATION AND FILLING IT UP THAT'S COST OF FUEL.

THE THAT WOULD BE IN THE 4000S. >> BOOKS AND SUPPLIES?

>> SO I WILL ADDRESS YOUR QUESTION HERE.

THE FIVE CATEGORIES WITHIN THE BOOKS AND SUPPLIES.

SO THE NUMBER I CIRCLED THERE WITH A THE NUMBER FROM TWO SLIDES AGO. THIS IS FURTHER DOWN IN THE FORM. IT WILL ACTUALLY GIVE YOU A BREAKDOWN OF THE DIFFERENT FORMS WITHIN BOOKS AND SUPPLIES.

SO THE 3.5 MILLION THERE IF I GO BACK TWO SLIDES, THAT'S THE 3.5 MILLION AT THE SUMMARY LEVEL.

SO NOW WHAT WE'RE LOOKING AT IS A BREAKDOWN OF THAT 3.5 MILLION.

YOU CAN SEE FOR 25, 26 ABOUT 15,000 OF UNRESTRICTED DOLLARS ESTIMATED TO BE SPENT ON TEXTBOOKS.

ANOTHER 120,000 FOR OTHER MISCELLANEOUS BOOKS, REFERENCE MATERIALS. THE QUESTION ON FUEL, THAT WOULD BE IN THAT 4300 LINE ITEM. SO IN ADDITION TO COPY PAPER, PENS, PENCILS, ALL THE THINGS THAT IT TAKES TO RUN A CLASSROOM, ONE OF THE LINE ITES IN THERE WOULD BE FUEL FOR THE SCHOOL BUSES. BUT AGAIN AT THAT STATE LEVEL, IT DOESN'T GIVE US THAT BREAKDOWN.

[01:30:02]

MOVING ON DOWN THEN SERVICES AND OTHER OPERATING EXPENSES.

THISES REALLY THE CATCHALL. SO ANYTHING THAT'S NOT A PERSON COST IS GOING TO GO INTO SERVICES AND OTHER EXPENSES.

SO WHEN WE GET INTO THIS LINE ITEM THIS RANGE R RANGES FROM ANNUAL LIABILITY AND PROPERTY INSURANCE.

EVERYTHING ASSOCIATED WITH KEEPING THE LIGHTS ON.

GAS, WATER, GARBAGE SERVICES. THE IF WE ARE OUTSOURCING REPAIRS, SO IF OUR STAFF INTERNALLY CAN'T FIX SOMETHING AND WE HAVE TO BRING SOMEONE IN TO FIX SOMETHING, THE REPAIR COST GOES INTO THAT LINE ITEM. ALL OF THE SOFTWARE THAT THE DISTRICT USES WHETHER IT'S INSTRUCTIONAL SOFTWARE, ATTENDANCE SOFTWARE, SOFTWARE TO MANAGE THE WI-FI CONNECTIONS, ALL OF THAT WAS GOING TO BE INCLUDED AS A SERVICE EXPENSE.

SPEAKING TO SPECIAL EDUCATION IF WE'RE EITHER CONTRACTING OUT SPECIAL EDUCATION BECAUSE WE CAN'T FILL A POSITION OR IF A STUDENT IS ATTENDING A NONPUBLIC SCHOOL, THE COST ASSOCIATED WITH THAT ALL IN THE SERVICE CATEGORY.

AND THEN TRAVEL AND CONFERENCES. THE QUESTION THAT'S ALWAYS ASKED IS WHAT IS THE BREAK DOWN. SIMILARLY TO THE BOOKS AND SUPPLIES. WE CAN DO THAT WITH ANY OF THE CATEGORIES WE TALKED ABOUT. WE HAVE BEEN FOCUSING ON THE SUMMARY LEVEL BUT I GET SO MANY QUESTIONS ON THESE TWO CATEGORIES I THOUGHT IT WAS IMPORTANT TO PROVIDE VISIBILITY INTO THEE AREAS. IF THE BOARD EVER HAD QUESTIONS AROUND WHAT ARE WE SPENDING IN THE SERVICES CATEGORY YOU CAN SEE WE GOT THE SUMMARY NUMBER DOWN AT THE BOTTOM.

AS YOU GO UP THROUGH EACH OF THOSE LINE ITEMS YOU CAN SEE HOW MUCH THE DISTRICT IS SPENDING IN EACH OF THOSE CATEGORIES.

SO THE FIRST ROW SUBAGREEMENTS FOR SERVICES A LOT OF IT IF NO THE ALL OF IT IS SPECIAL EDUCATION THAT.

WOULD BE MY EXPECTATION FOR THAT ONE.

YOU CAN SEE THE NUMBER THAT IS THERE.

THE A COUPLE ROSE DOWN INSURANCE AND THE DISTRICT IS SPENDING ABOUT 3.2MILLION DOLLARS EVERY YEAR FOR PROPERTY AND LIABILITY INSURANCE. THAT'S JUST AN OPERATING COST RIGHT OFF THE TOP. THE MAJORITY OF THAT IS USING UNRESTRICTED DOLLARS. THE LINE UNDERNEATH THAT OPERATIONS AND HOUSEKEEPING, THAT'S ALL OF OUR UTILITIES.

GAS, WATER, ELECTRICITY. THE 5,800, THAT'S GOING TO INCLUDE CONTRACTING OUT FOR NONPUBLIC SCHOOLS AND SPECIAL EDUCATION. IT'S ALSO GOING TO INCLUDE ALL OF OUR SOFTWARE LICENCING. SO I HAD MENTIONED FINANCIALMENTS IS, ATTENDANCE SYSTEMS, INSTRUCTIONAL SYSTEMS, LEARNING MANAGEMENT SOFTWARES. ALL OF THAT WILL BE INCLUDED IN

THAT LINE ITEM AS WELL. >> I'M GOING TO GO BACK AND ASK THE SAME QUESTION FOR THIS ONE. JUST AS AN EXAMPLE FOR INSURANCE,ICS ALL THE WAY TO THE FAR RIGHT THERE'S A NEGATIVE 97.9%. WHY OR HOW DOES THAT NUMBER HAPPEN? IS IT BECAUSE WE'RE, LIKE, SPENDING MORE MONEY IN INSURANCE THAN WE ANTICIPATED AND THAT'S

WHY THAT NUMBER IS SO HIGH? >> IT'S THE OTHER WAY.

SO IF WE'RE READING THIS ACROSS, IN 25, 26 THE DISTRICT WAS OR IS PROJECTING TO SPEND 3.25MILLION IN INSURANCE FOR THE 25, 26 YEAR. IN 26, 27 POTENTIALLY THAT COST IS BEING PAID FOR OUT OF A DIFFERENT FUND MAYBE.

I WOULD HAVE TO GO BACK AND SEE BUT INSURANCE IS AN ANNUAL COST SO IT WOULD BE INCLUDED SOMEWHERE IN OUR ANNUAL BUDGET.

>> SO THAT DOESN'T ANSWER WHY IT IS STILL NEGATIVE.

>> ITS BECAUSE IT'S AN INCREASE. IT'S JUST DOING THE MATH.

>> BUT THAT SHIFTED INTO SOME OTHER COLUMN.

THANK YOU. WE'RE LOOKING AT THE GENERAL FUND RIGHT NOW. MOST LEAS HAVE ANYWHERE FROM 10 TO 15 FUNDS THAT THEY USE. THE I DON'T KNOW WHAT THE DISTRICT'S PLAN IS AND I'M NOT GOING TO PUT HER ON THE SPOT RIGHT NOW UNLESS SHE RAISES HER HAND AND GRABS MY ATTENTION.

BUT THAT WOULD BE SOMETHING WHERE I EXPECT TO SEE A NUMBER THERE. SO THE FACT THAT IT'S ZERO, I WOULD SAY ARE WE PAYING FOR IT OUT OF A DIFFERENT FUND FOR THE

[01:35:01]

I DON'T HAVE THE ANSWER THOUGH. >> SO EVEN THOUGH IT'S INSURANCE IT DOESN'T HAVE TO GO IN THAT COLUMN UNDER INSURANCE?

>> IT WOULD HAVE TO GO IN THAT ROW FOR INSURANCE.

>> BUT IT'S ZERO SO WE ALREADY SAID IT'S COME FROM A DIFFERENT FUND SO WHY WOULD IT COME FROM A DIFFERENT FUND?

>> IT MAY BE BECAUSE WE ARE LOOKING AT FUND 01.

>> I SEAR YORKLY DOUBT THE INSURANCE IS 61,000.

IT'S PROBABLY IN A DIFFERENT FUND BUT WHY WOULDN'T IT BE WHERE IT SUPPOSED TO BE IN INSURANCE.

THAT MAKES IT DIFFICULT FOR A BOARD MEMBER TOO IF WE'RE LOOKING AT THESE LINE ITEMS THAT ARE INSURANCE AND DIFFERENT FUND

ALL OVER THE PLACE. >> YEAH.

IF THERE WAS NOT A CONVERSATION. AND AGAIN I WAS NOT HERE FOR THE BUDGET DEVELOPMENT PROCESS, SO I DON'T KNOW IF THERE WAS A CONVERSATION WHERE THE DECISION WAS MADE AND THE INSURANCE WOULD BE PAID WITH A DIFFERENT FUNDING SOURCE.

>> OKAY, THANK YOU. >> IS IT, COULD YOU EXPLAIN THE TRANSFER OF INDIRECT COST FUND BECAUSE IT SEEMS LIKE THAT IS PLUS OR MINUS A POSSIBILITY SO WHAT IS THAT FOR?

>> THIS GETTING REALLY IN THE WEEDS.

IF WE, SO AGAIN THIS WOULD BE AN INTERACTION BETWEEN FUNDS.

SO IF WE CHARGED LET SAY WE CHARGED SOME PEOPLE COS TO FUND 01, ANYTIME WE CHARGE A PERSON COST WE HAVE THE SALARY LINE ITEM. WE HAVE ALL THE BENEFIT LINE ITEMS. THE HEALTH AND WELFARE.

SO EACH PERSON IS GOING TO HAVE SEVEN OR EIGHT LINE ITEMS AS WE ARE RECORDING THE COSTS. IF WE WANTED TO MOVE THEM FROM ONE FUND TO ANOTHER FUND OR VICE VERSA WE COULD USE A DIFFERENT LINE. SO RATHER THAN DOING A BIG GIANT JOURNAL ENTRY WE COULD JUST DO A ONE LINE JOURNAL ENTRY IN

BETWEEN THE FUNDS AS AN EXAMPLE. >> ONE FOR QUESTION FOR YOU.

FOR LEGAL FEES WHERE DOES THAT COME OUT OF?

>> LEGAL FEES WILL LARGELY BE IN THE 5800S.

SETTLEMENTS WOULD BE IN THE SAME CATEGORY.

>> THANK YOU. >> YOU'RE WELCOME.

THE DETAIL IS THERE. IT'S IN THAT SAME 01 MAYBE FIVE OR SIX PAGES DOWN. I WILL LUMP THE LAST THREE TOGETHER HERE. THERE WAS A CONVERSATION EARLIER AROUND THE COOF THE FIELDS USING THE GENERAL FUND FOR THAT.

MY EXPECTATION IS THE COST WOULD BE IDENTIFIED HERE IN ROW 6 CAPITAL OUTLAY. THE WAY THAT WE DEFINE THAT IS IT IS GENERALLY A MATERIAL COST SO WOULD NORMALLY GO ON THE MATERIAL AND SUPPLIES EXCEPT FOR THE FACT THAT IT EXCEEDS A SPECIFIC DOLLAR THRESHOLD WHICH HISTORICALLY WAS $5,000.

ANYWHERE FROM 5 TO 15 DEPENDS ON WHERE THE LOCAL CAPITALIZATION THRESHOLD IS SO THAT WOULD BE IN YOUR BOARD POLICY.

I APOLOGIZE. I DID NOT LOOK THAT UP TO SEE WHAT IT. THE BUT A BOX OF PENCILS WOULD NEVER BE IN THE CAPITAL OUTLAY. TALKING ABOUT MODERNIZATION, BIG TICKET ITEMS. IF WE BOUGHT A SCHOOL BUS THAT WOULD BE IN THE CAPITAL OUTLAY BECAUSE THE SCHOOL EXCEEDS.

THE COST OF THOSE FIELDS ARE RECORDED IN THIS PARTICULAR LINE ITEM AS WE ARE PAYING THOUGH BILLS.

AND THEN IF WE HAVE PAYMENT THERE ARE SPECIALIZED PROGRAMS FOR SPECIAL EDUCATION. AND INDIRECT FUNDS WE CAN USE THE INDIRECT COSTS. OKAY, SO WE SPOKE ABOUT A THE CONTRIBUTIONS EARLIER. SOME DISTRICTS WILL PRESENT GENERAL FUND COMBINED AND DON'T BREAK OUT UNRESTRICTED VERSUS RESTRICTED AND I THINK IT'S IMPORTANT WE DOS BECAUSE IF WE JUST SHARE THE COMBINESSISH IT'S ZERO.

IF WE WEREN'T SPENDING THESE DOLLARS IN THIS MANNER, THE DOLLARS WOULD BE AVAILABLE IN OUR UNRESTRICTED SIDE BUT BECAUSE WE ARE USING THESE DOLLARS, WE HAVE TO SHOW THE TRANSFER OF THOSE DOLLARS, AND SO WE CALL IT ACY.

IT'S A CONTRIBUTION TO SUPPORT RESTRICTED PROGRAMS. THAT'S WHY YOU SEE THE MOVEMENT FROM UNRESTRICTED TO RESTRICTED.

[01:40:10]

THE FIRST IS ROUTINE RESTRICTED MAINTENANCE AND THIS WAS MENTIONED EARLIER. ANYTIME THE DISTRICT PARTICIPATES IN THE SCHOOL FACILITY PROGRAM WE RECEIVE BOND FUNDS FROM THE STATE OF CALIFORNIA TO SUPPORT EITHER NEW CONSTRUCTION OR MODERNIZATION. FROM THE YEAR THAT WE RECEIVED THOSE FUNDS WE HAVE TO SET ASIDE 3% OF OUR TOTAL SEASON INSIDE A RESTRICTED ACCOUNT. WE DO THAT WITH ACY.

WE ARE USING UNRESTRICTED DOLLARS AND SETTING THEM ASIDE.

THEY SAY WE DON'T WANT THE BUILDINGS TO SIT THERE UNTOUCHED. WE WANT YOU TO CONTINUE TO KEEP YOUR BUILDINGS UP TO DATE. SO THEY REQUIRE A SET ASIDE.

YOUR GENERAL FUND IS I'M GOING TO DO SOME MATH ON THE FLY HERE ABOUT $250 MILLION. SO THIS SET ASIDE IS RIGHT AROUND 7 MILLION, 7 AND A HALF MILLION DOLLARS.

SO WHEN WE PUT THAT IN CONTEXT, THE DISTRICT IS 39 MILLION.

SO IF 7 MILLION IS REDISTRICTED MAINTENANCE, THAT MEANS THE REST OF IT WILL BE LARGELY SPECIAL EDUCATION AROUND $30 MILLION GIVE OR TAKE. THE WAY THIS CONTRIBUTION FOR SPECIAL ED IS CALCULATED IS WE LOOK AT ALL OF OUR EXPENSES FOR PROVIDING SPECIAL EDUCATION SERVICES.

SO THINGS THAT ARE FEDERALLY MANDATED IN A STUDENT'S IEP.

WE LOOK AT ALL OF THOSE COSTS AND ACCOUNT FOR MONEY RECEIVED FROM THE FEDERAL GOVERNMENT, MONEY WE RECEIVED FROM THE STATE WITH THE 18 TO 22 TRANSITION PROGRAM.

ALL THE ADA THAT IS GENERATED IS INCLUDED IN THE STATE REVENUES.

MINUS MONEY FROM THE STATE GOVERNMENT AND THE HOME GOVERNMENT THE DIFFERENCE IS THE CONTRIBUTION.

SO SAID ANOTHER WAY ONCE WE ACCOUNT FOR ALL OF THOSE THINGS THE DISTRICT IS ON THE HOOK FOR $30 MILLION A YEAR.

AND YOU GUYS ARE NOT ALONE IN THAT.

I HAVE NOT SEEN A DISTRICT IN MY 20 YEARS THAT DIDN'T HAVE AN ACCOUNT FOR SPECIAL JAKE. WHEN IDA WAS FIRST PASSED AT THE FEDERAL LEVEL THEIR COMMITMENT WAS TO COVER 40 PER OF THE COSTS AND THEY CURRENTLY COVER 10%. SO THAT PUTS IT ON THE BACKS OF US. WHEN THE STATE STEPS IN THEY COULD ALLOCATE MONEY TO LCFF. THEY TOOK ANOTHER $2 BILLION OF PROP 98 MONEY FOR SPECIAL EDUCATION LARGELY BECAUSE THE FEDERAL GOVERNMENT IS NOT LIVING UP TO THE PROMISE.

CERTAINLY WANT TO MONITOR THAT BECAUSE THOSE ARE DOLLARS THAT COULD HAVE BEEN AVAILABLE FOR ANY OTHER EDUCATIONAL PURPOSE.

SO MONITORING THAT CONTRIBUTION HIGH IMPORTANCE.

WE GET DOWN INTO THE RESERVES NOW.

WE'RE COMING UP ON THE CONCLUSION OF THE SLIDE SHOW HERE. I JUST WANT TO SPEND A LITTLE BIT OF TIME TALKING ABOUT THE RESERVES AND PUTTING INTO CONTEXT WHAT THE BOARD HAS EXPERIENCED OVER THE LAST FEW YEARS. WE KICKED THROUGH HOW TO READ THIS BOTTOM SECTION. THAT F2 THERE, THAT IS THE AMOUNT THAT IS LEFT OVER AT THE END OF THIS FISCAL YEAR WE SHOULD ALWAYS BE ON ROW E TO SEE IF WE HAVE A SURPLUS OR DEFICIT.

AGAIN FOR THE CURRENT YEAR 25, 26 PROJECTING A $32 MILLION DEFICIT. THAT IS PROJECTED TO DECREASE TO JUST UNDER 15 MILLION. SO WE'RE GOING IN THE RIGHT DIRECTION. WHEN WE LOOK AT ENDING RESERVES.

TRUST ME THE NUMBERS ARE EXACTLY RIGHT ON HERE.

A FEW YEARS BACK THE DISTRICT HAD A RESERVE I BELIEVE WAS OVER 60%. WHEN YOU LOOK AT WHAT'S HAPPENED OVER THE LAST FEW YEARS, THE INTENTION HAS BEEN DEFICIT SPENDING. THE ONLY WAY TO SPEND DOWN THE RESERVES JUST LIKE THE ONLY WAY YOU CAN SPEND DOWN YOUR OWN SAVINGS ACCOUNT IS TO SPEND MORE THAN YOU BRING IN.

[01:45:01]

SO THAT IS CALCULATED AS UNRESTRICTED RESERVES DIVIDED INTO OUR TOTAL EXPENSES. SO I HAVE HIGHLIGHTED THAT FOR YOU THERE ON THE BOTTOM HALF OF THE SLIDE.

I CAN'T REMEMBER WHEN IT WAS AT THE RESERVE BUT YOU SEE THAT RESERVE PERCENT IS COMING DOWN. 23, 24 FOR THE UNAUDITED ACTUALS JUST UNDER 45% AND THAT DROPPED TO 24% AT THE END OF THE 24,ISH 25 YEAR. WHERE WE ARE BASED ON THE PROJECTIONS THOSE ESTIMATED ACTUALS WHICH IS THE MOST RECENT INFORMATION THE BOARD HAS BEEN PROVIDED IS GOING TO DROP DOWN TO JUST OVER 20% AT THE END OF 25, 26.

WHAT DO WE SAY STATE WIDE? WHEN WE LOOK AT THE 24, 25 YEAR AND ALL OF THE UNIFIED SCHOOL DISTRICTS, THE AVERAGE RESERVE WAS JUST UNDER 22%. WHEN WE DO INDEED END THE 25, 26 END WITH A RESERVE OF 22% WE ARE RIGHT AROUND THE AVERAGE I WOULD SAY THE BOARD HAS IMPLEMENTED ITS PLAN OF BRINGING DOWN THAT RATHER LARGE SUMMER RESERVE OF JUST A FEW YEARS AGO.

THE CHALLENGE AGAIN IS GOING TO BE HOW TO NOT DROP IT AT A RATE THAT PUT US IN A FINANCIAL PROGRAM IN THE NEAR FUTURE.

THAT THE CHALLENGE BEFORE THE BOARD.

I NOTED FOR THE 25, 26 BUDGET THERE WAS ANOTHER DEFICIT OF 19 MILLION PROJECTED NEXT YEAR. THAT 29 MILLION NOW BECOMES 30 MILLION AT THE END OF 26, 27 BASED OFF CURRENT PROJECTIONS.

>> SO I KNOW WE HAVE TO HAVE A 3% IN OUR SAVINGS, BUT WHAT IS THE ACTUAL NUMBER THAT WE NEED, AND I FEEL LIKE I HAVE HEARD THIS NUMBER BEFORE BUT WANT TO MAKE SURE.

WHAT IS THE PERCENTAGE WE NEED A A DISTRICT TO BE ABLE TO OUR EMPLOYEES IF THE WORLD HALTED AND EVERYBODY NEEDED THEIR LAST CHEQUE. WHAT HAVE THE PERCENTAGE WE

NEEDED? >> I THINK IT'S AROUND 6%.

I WENT TO CHICO STATE SO THAT'S BACK OF THE NAPKIN.

BE YOU YOUR PAYROLL COS ARE AROUND 80% OF YOUR BUDGET.

SO IF YOU TAKE THAT AROUND 6, 7%.

>> EVEN THOUGH OUR DEFICIT SPENDING WITH THE 20%, WE WOULD STILL HAVE ENOUGH IN OUR SAVINGS TO PAY? IF WE KNOCK THIS FORWARD, SO EVERYONE REMEMBER THE 49.49 MILLION. WE TALKED ABOUT THAT A COUPLE OF TIMES. IN 26, 27 BASED OFF THE ADOPTED BUDGET AT THE TIME THAT IT WAS PRESENTED TO THE BOARD, STAFF WAS PROJECTING YOU WERE GOING TO END THE 26, 27 YEAR WITH A $20.9 MILLION RESERVE. THAT IS MORE THAN STOUT COVER

PAYROLL IF THE WORLD ENDED. >> ONE TIME.

>> A FEW MONTH. SO I'M GETTING DIFFERENT VISUALS

TO THE SIDE. >> ONLY PAYROLL.

THAT'S THE FOCUS IS ONLY PAYROLL.

THAT WOULD BE TO PAY OUR PEOPLE BUT UTILITIES, OTHER THINGS THAT

WOULDN'T BE INCLUDED. >> OKAY.

THANK YOU FOR CLARIFYING. I APPRECIATE IT.

SO WHEN THE STATE IS LOOKING AT THE RESERVE THEY ARE LOOKING AT THE CURRENT PLUS THE TWO SUBSEQUENT BUDGET YEARS.

IF WE ONLY HAVE 3% IN THE CURRENT YEAR, THE SKY IS FALLING. THEY ARE LOOKING AT THE CURRENT TWO OUT YEARS. ON THIS TRAJECTORY THEY WOULD

[01:50:07]

THAT IS WHAT THEY ARE HEARING. PART OF THAT WAS LOOKING AT THE MULTIYEAR PROJECTION THE 26, 27 AND 28, 29 THAT 49 MILLION IS GOING TO COVER THE THREE YEARS BECAUSE THE DEFICIT IS OVER

$37 MILLION. >> YOU'RE SNAKE THREE YEARS WE

WILL BE AT ZERO. >> IF WE CONTINUE ON THAT SAME TRAJECTORY. SO AGAIN THE BOARD IN THABLY SO HAS REDUCED ITS ENDING RESERVES. NOBODY WANTED TO BE AT 60%.

THAT'S NOT A GOOD PLACE TO BE. NOT THE BANK OF BELLFLOWER.

THAT BEING SAID HOW DO YOU EXTEND THIS DEFICIT SPENDING SO WE GET BACK TO A BALANCED BUDGET WITH OUR ANCHOR POINT BEING THAT THE RESERVES AT THE END OF 25, 26 ARE PROJECTED TO BE RIGHT AT THE STATE WIDE AVERAGE. SO YOU ARE BACK TO NORMALCY WITH $49 MILLION. YOUR GENERAL FUND IS A QUARTER OF A BILLION DOLLARS. $243 MILLION.

SO IT IS RELATIVE. RIGHT AROUND THE STATE WIDE AVERAGE. SO THE TASK NOW IS OKAY, WE GOT THERE. HOW DO WE NOW KIND OF RIGHT THE SHIP SO THAT OUR EXPENDITURES AND CASH OUTFLOWS ARE MORE IN LINE WITH WHAT OUR CASH RECEIPTS ARE EACH AND EVERY YEAR.

MAYBE THE MAIN TASK WAS TO TALK A LITTLE BIT ABOUT WHAT HAS HAPPENED OVER THE PAST FEW YEARS RELATIVE TO CHANGES FROM BUDGET TO ACTUALS. THIS RECOGNITION THAT WHEN YOU'RE SEEING THE ACTUAL NUMBERS THEY ARE WILDLY DIFFERENT THAN WHAT HAS BEEN PRESENTED ALL YEAR.

AND I FELT LIKE I COULDN'T TALK ABOUT THIS WITHOUT TALKING ABOUT A THE OTHER THINGS. I FELT LIKE I NEED TO SET THE STAGE AND A LEVEL OF UNDERSTANDING ON EACH OF THOSE OTHER AREAS. THERE ARE A LOT OF ASSUMPTIONS THAT GO INTO BUDGETING. SO THE QUESTION BECOMES WHAT IS A REASONABLE AMOUNT OF CHANGE THROUGH THE PERIODS? WHAT I DID FOR THE LAST THREE YEARS AND WE'RE ABOUT A MONTH AWAY FROM GETTING THE 25, 26 INFORMATION.

THAT WILL BE COMING TO THE BOARD IN THE SEPTEMBER BOARD MEETING, THE UAS FOR 25, 26. I GRABBED A SNAPSHOT FROM THE LAST COMPLETED YEARS, 22,23, 23, 24 AND 24, 25.

AND I COMPARED LOOKING AT THE UNRESTRICTED GENERAL FUND, WHAT STAFF REPORTED. SO THE UNREPORTED ACTUALS THAT'S BROUGHT TO THE BOARD IN JUNE. SO ESTIMATED ACTUALS WE SHOULD HAVE A PRETTY GOOD IDEA ABOUT WHERE THE DUST IS GOING TO SETTLE. WE ONLY HAVE A MONTH OR TWO OF PAYROLL AT THAT POINT. MOST OF THE BILLS HAVE BEEN PAID FOR THE YEAR. WE SHOULD HAVE A PRETTY GOOD IDEA. AND SO LOOKING AT THAT CHANGE THEN FROM ESTIMATED ACTUALS TO UNAUDITED 22, 23.

STAFF REPORTED THE ENDING BALANCE WOULD BE 63.5.

THE ACTUAL BAN WAS 93.1. CHANGE OF $30 MILLION.

NEXT ROW. JUNE OF 2,469,000,000.

CAME IN ON 26 MILLION. $27 MILLION CHANGE.

24, 25 ESTIMATED $80 MILLION IN JUNE OF 24 OR JUNE OF 25 AND SEPTEMBER OF 25 CAME IN AT 86 MILLION.

THE CHANGE IN THE FIRST TWO YEARS, THOSE ARE BIG SWINGS.

THIS TELLS ME THERE WAS A LOT OF WORK DONE IN 24, 25 TO STRENGTHEN THE BUDGETING PROCESS.

WHEN I LOOK AT ALL OF THE ACCOUNT STRINGS ACROSS ALL THE DIFFERENT FUNDS THAT STAFF IS POURING OVER EACH TIME THEY DO A BUDGET AND THEN WHEN THEY DO THE UNAUDITED ACTUALS.

SO RECOGNIZING THAT WE HAVE A BUDGET OF A QUARTER OF A BILLION

[01:55:04]

TO ME A SWING OF $6 MILLION, THAT'S LESS THAN 3%.

THAT'S GOOD. AND IF WE'RE GOING TO SEE A SWING, THAT'S THE DIRECTION WE WANT IT TO GO.

NOBODY WANTS TO BE IN SACRAMENTO CITY WHERE THEY HAVE A $60 MILLION OOPS AT THE END OF THE YEAR.

THAT'S NO FUN. IF WE WANT A SWING, THAT'S THE WAY IT'S GOING TO GO. TO ME A SWING OF 3% IS WITHIN REASONABLENESS WHEN WE ARE TALKING 20,000 ACCOUNT LINES.

THE $29 MILLION AND $26 MILLION, THERE NEEDS TO BE AN EXPLANATION THAT GOES ALONG WITH THAT. THAT IS NOT WITHIN THE RANGE OF WHAT WOULD BE EXPECTED. SO POTENTIALLY RECALL WE HAD A LOT OF THE ONE-TIME FEDERAL DOLLARS THAT WERE EXPIRING.

MAYBE STAFF SAID HEY, WE WANT TO END AND THOSE SO WE DON'T SEND IT BACK TO THE FEDERAL GOVERNMENT.

IT COULD HAVE BEEN THEY WEREN'T BUDGETING WELL.

I DON'T KNOW WITHOUT DOING A DEEP DIVE.

I WILL SAY BASED ON WHAT HAPPENED THE BUDGET PROCESS WAS CLEANED UP QUITE A BIT AND THERE WAS A LOT MORE ATTENTION AND FOCUS GIVEN TO THE CLEARS OF THE ESTIMATED ACTUALS IN JUNE SO WHEN THE ACTUALS CAME IN SEPTEMBER, THE DIFFERENCE WAS MUCH, MUCH SMALLER AND WITHIN THAT REASONABLE RANGE OF WHAT WOULD BE EXPECTED. SO WE DON'T KNOW WHAT WILL HAPPEN IN 25, 26 YET BECAUSE THE STAFF IS WORKING ON IT.

THAT WILL COME IN THE NEXT BOARD MEETING.

IT DOES SEEM LIKE AGAIN BASED OFF LAST YEAR THERE WAS A MUCH MORE INTENTIONAL PROCESS WHEN THE ESTIMATED ACTUALS WERE COMPLETED. SO THAT GETS US BASICALLY TO THE END OF THE PRESENTATION SAVE FOR A COUPLE SLIDE.

ANY THOUGHTS, QUESTIONS, COMMENTS.

>> ONLY THOUGHT THAT I HAVE IS SHOUTOUT TO RENE FOR CLEANING UP BECAUSE BEFORE I DIDN'T UNDERSTAND ANYTHING AND NOW I UNDERSTAND A LOT MORE SO IT HELPED ME GET THROUGH THIS BUT ALSO TO UNDERSTAND THAT THAT 3% IS PRACTICAL AND BASED IN REALITY AND NOT SUCH A HUGE DIFFERENCE.

THANK YOU SO MUCH. AND I AM LOOKING FORWARD TO SEEING THOSE NUMBERS IN SEPTEMBER.

>> GOTTA BE SEPTEMBER 10TH, BOARD MEMBERS.

>> IS IT DEFICIT SPENDING STRUCTURAL OR IS IT A CAUSE OF SPENDING COMMITTED FUNDS AND I KNOW IT WHEN WE GOT ON THE BOARD THERE WAS A FUND THAT WAS SET ASIDE FOR PROJECTS.

I THINK IT WAS, LIKE, $30 MILLION AND THE BOARD DECIDED TO USE THAT MONEY FOR THOSE PROJECTS.

SO I THINK THAT IT LOOKS LIKE WE ARE STRAIGHT OUT WHERE IS IT ONE-TIME FUNDING OR EXPENSES OR IS IT STRUCTURAL? WHAT IS YOUR ASSESSMENT ON THE STRUCTURAL SPENDING.

>> I KNOW THAT IS INTENTIONAL OVER THE LAST COUPLE YEARS.

I WOULD NEED TO SEE ON THE FIELDS.

IF ALL OF A SUDDEN THAT WENT AWAY, YOUR DEFICIT IS BASICALLY ELIMINATED. I WOULD NEED TO SEE IS THAT CONTINUING IN THE OUT YEARS OR IS IT NOT? I DIDN'T PUT IT ON THAT ONE BUT THAT WILL TELL YOU.

IF WE HAVE A DEFICIT AND IT IS BIGGER THAN WE FEEL COMFORTABLE WITH, THAT IS A STRUCTURAL DEFICIT.

AGAINA LOT OF THE DEFICIT SPENDING OVER THE LAST COUPLE OF YEARS HAS BEEN INTENTIONAL RECOGNIZING THAT WE WANT TO INVEST THAT INTO FACILITIES. I DON'T HAVE A LOT OF INFORMATION YET TO SUGGEST IS THIS A STRUCTURAL DEFICIT THAT NEEDS CHANGES IN THE SYSTEM. I WOULD NEED TO SEE WHAT THOSE EXPENDITURES ARE IN THE TWO OUT YEARS.

>> THANK YOU. JUST TO WRAP UP I WANTED TO REALLY LOOK FORWARD TO WHAT THE BOARD HAS IN FRONT OF IT.

WHEN YOU SEE THE UNAUDITED ACTUALS, IT'S GOING TO BE THE SAME FORMAT THAT WE HAVE BEEN LOOKING AT WHEN YOU HAVE THE ESTIMATED ACTUALS AND ADOPTED BUDGET.

THE ONE THING THAT'S GOING TO CHANGE IN SEPTEMBER IS THOSE

[02:00:03]

THAT IS THE ONE TAME OF YEAR IT EXACTLY RIGHT.

ACTUAL EXPENDITURES AND ACTUAL CONTRIBUTION.

THE RIGHT-HAND SIDE YOU WILL STILL SEE THE 26, 27 NUMBERS.

THOSE ARE ALL BUDGET NUMBERS AND PROJECTIONS AT THIS POINT.

AS STAFF IS DOING THE UNAUDITED ACTUALS RECOGNIZING THAT SCHOOL JUST STARTED ON MONDAY THERE ARE STILL A LOT OF UNKNOWNS.

THERE WILL BE AN OPPORTUNITY TO HAVE A CONCRETE CONNECTION KNOWING WHAT'S HAPPENED OVER THE FIRST FOUR MONTH OF SCHOOL AND THE FIRST SIX MONTH OF THE FISCAL YEAR.

WHEN YOU DO GET THERE THE FORMAT CHANGES.

WHAT WE'RE LOOKING AT ON THE SCREEN IS THE SAME FORM 01 BUT IT'S THE SAME FORM WHEN YOU GET TO SECOND AND THIRD INTERIM.

THE REASON IT CHANGES IS YOU ARE LOOKING AT INTRAYEAR VERSUS UNAUDITED AND ESTIMATED YOU'RE LOOKING AT INTERYEAR.

WHATEVER. WE GET IT.

>> CAN YOU SAY THAT ONE MORE TIME PLEASE.

>> THE ESTIMATED ACTUALS OF WHAT WE HAVE BEEN LOOKING AT THIS EVENING LOOKS AT TWO YEARS. IT LOOKS AT THE EXAMPLE WE ARE LOOKING AT LOOKS AT THE 25, 26 YEAR AND THE 26, 27 YEAR.

WHEN YOU LOOK AT THE UNAUDITED ACTUALS 26, 27 BUDGET.

WHEN YOU GET TO FIRST INTERIM, IT WILL BE LOOKING ONLY AT 26, 27 ONLY 26, 27. THE FORMAT CHANGE QUITE A BIT.

SO THIS FORMAT THAT WE HAVE HERE FOR THAT.

THE FIRST COLUMN AND I WANT THIS TO BE A RESOURCE FOR YOU TO GO BACK TO. THE FIRST WILL BE THE BUDGET ADOPTED IN JUNE. THOSE SHOULD BE VERY FAMILIAR WHEN YOU SEE THE FIRST INTERIM BUDGET.

COLUMN D IS REALLY WHAT YOU'RE APPROVING WHEN YOU GET TO FIRST INTERIM. THAT IS STAFF'S UPDATED REVENUES. THAT'S GOING TO BE THE DELTA.

SO MEASURING COLUMN A TO COLUMN D.

THERE IS A LOT OF NUMBERS. COLUMN C IS JUST SAYING WHAT ACTUALLY HAPPENED THROUGH OCTOBER 31ST.

I JUST TELL PEOPLE TO PUT A BLACK LINE THROUGH IT.

IT DOESN'T MEAN ANYTHING BECAUSE ALL THE BUDGET NUMBERS ARE PROJECTION FORS THE WHOLE YEAR. THERE IS NO REAL PURPOSE IN COMPARING WHAT HAS HAPPENED FOR FOUR MONTHS OF A YEAR COMPARED TO WHAT WE ARE PROJECTING IN THE YEAR.

NOT A LOT OF WHERE WE STARTED THE YEAR VERSUS WHERE DOES STAFF THINK WE ARE GOING NOW. THAT'S WHERE THE CHANGES ARE GOING TO BE AND PRESENTATION HAVE BEEN VERSUS WHAT A CHANGED.

AND THE FINAL COMPONENT THE MULTIYEAR PROJECTION WITHIN THAT FIRST INTIMATE IT WILL BE ACROSS 26, 27 AND 28, 29.

IT WILL TIE BACK TO COLUMN D AND THE 401.

IT WILL BE SEPARATE DOCUMENTS IN THE PACT.

I WOULD SUGGEST PULLING OUT THE 401 SIDE BY SIDE.

THAT WILL ANSWER THE VICE PRESIDENT'S QUESTION AND PROVIDE SUPPORT. IS IT SPRAWL OR IS IT PLANNED WITH ONE-TIME SEASONS LAYERED IN THERE .

THAT'S WHERE YOU FIND YOUR ANSWERS.

THE ALL RIGHT? WE MADE IT.

WHERE ARE WE AT NOW? MIDDLE OF AUGUST.

COMING UP YOU HAVE THE UNAUDITED ACTUALS WHICH WILL COMPLETE THE BOARD'S RESPONSIBILITIES FOR 25, 26.

THE STAFF REALLY FOCUSED ON. WHERE WILL WE END THE YEAR

[02:05:04]

THAT COMPARISON BETWEEN UNAUDITED.

THE AUDITORS WILL COME OUT AND DO THEIR WORK IN JANUARY SOMETIME. YOU WILL HAVE AN ACTION ITEM ON THE AUDIT REPORT. SO THAT WILL PUT A BOW ON THE YEAR AND THEN YOU'RE IN INTERIM AND ADOPT A BUDGET AND THE CYCLE CONTINUES. OKAY?

>> I ACTUALLY DO HAVE A QUESTION.

IN THIS BUDGET CYCLE. AS BOARD MEMBERS OUR NUMBER ONE DUTY IS TO MAKE SURE THE DISTRICT IS FINANCIALLY STABLE.

IF THE BOARD WANTS TO MAKE SURE THAT THEY ARE ALLOCATED MONEY TO A DIFFERENT PLACE THAN SUGGESTED BY STAFF THAT IS THE APPROPRIATE

TIME TO DO IT, CORRECT? >> YEAH.

SO STAFF WILL PRESENT A BUDGET PROJECTION TO YOU BASED OFF OF DIRECTIONS PROVIDEDDED BY THE BOARD AND THE TEAM.

IF THERE'S SOMETHING IN THE BUDGET THAT DOESN'T APPEAR TO BE REFLECTING THE BOARD'S DIRECTION, THAT WOULD BE THE TIME TO HAVE THAT CONVERSATION. AS THE YEAR PROGRESSES IF THE BOARD'S DIRECTION CHANGES STAFF CAN INCORPORATE THAT WITHIN REASONS FOR BETTER OR FOR WORSE. BUT YES, THE NEXT INTERIM PERIOD IS WHERE THAT WOULD BE STAFF'S DECISION TO MAKE CHANGES BASED ON WHAT WE HEARD FROM THE STATE OR DIRECTION PROVIDED BY THE

BOARD. >> IS THERE ANOTHER TIME THE BOARD CAN KEEP IT THE SAME AS MUCH AS POSSIBLE BUT IS THERE

ANOTHER TIME? >> IT'S NOT KEEP IT THE SAME WAY AS MUCH AS POSSIBLE BUT THERE'S A RECOGNITION THAT IT'S KIND OF LIKE THE TITANIC. WE'RE NOT THE LITTLE SCOOTER BOAT OR WHATEVER. WE CAN'T PIVOT THAT QUICKLY.

THERE HAS TO BE A CONSIDERATION ON WHAT NEEDS TO BE DONE TO MAKE THOSE CHANGES. IT IS NOT AS SIMPLE AS MAKING A CHANGE N A LINE ITEM. IF THEY DO PROVIDE A LEGAL STANDPOINT, THE BOARD HAS AN OPPORTUNITY TO MEET WITH STAFF INDIVIDUALLY. SOME BOARDS DO IT TWO BY TWO IF YOU WANT TO HAVE QUESTIONS OR BETTER UNDERSTAND THE BUDGET OR PROVIDE SOME THOUGHT. THAT BEING SAID, IT TAKES THE COLLECTIVE, IT TAKES A VOTE OF THE BOARD IF WE CHANGE SOMETHING THROUGHOUT THE YEAR BETHE TIME WE GET TO OPEN SESSION, SEE SOME

OF THE FRUITS OF THAT LABOUR. >> SO IF THE BOARD WANTED TO.

>> I WOULD SAY BEST PRACTICE ONCE THE BUDGET IS DEVELOPED FOR THE YEAR AND THE SCHOOL YEAR IS STARTED THERE'S NOT A LOT WE CAN DO FOR THE 26, 27 YEAR. DIRECTION HAS ALREADY BEEN INCLUDED. TO STOP SOMETHING WHERE THE WHEELS ARE SET IN MOTION IT WOULD BE DIFFICULT IN NOT COST PROHIBITIVE. WHAT BOARDS WILL DO IS IN ANTICIPATION OF NECK YEAR'S BUDGET THEY WILL SCHEDULE A STUDY SESSION WHERE HE WITH BRING EVERYBODY TOGETHER BUT IT IS FOCUSED ON WHAT IS IN THE BUDGET MOVING FORWARD.

I WOULD SAY THAT COULD HAPPEN DECEMBER, JANUARY TIME PERIOD WHICH COULD PROVIDE ENOUGH OPPORTUNITY FOR CONVERSATION.

AND IF SOMETHING ANNOYED KNEADED TO BE ACTED UPON, THEY CAN DO SO AND ALLOW STAFF TO INCORPORATE THAT IN THE BUDGET FOR THE SUBSEQUENT YEAR. I MISUNDERSTOOD YOUR QUESTION.

>> I MISUNDERSTOOD. THANK YOU FOR READING BETWEEN

THE LINES. >> I HAVE A FEW QUESTIONS.

FIRST BECAUSE OF WHAT YOU JUST SAID IS YOU'RE NOT REALLY CHANGING A LOT OF THINGS. DOING THIS WAY EARLIER LIKE FEBRUARY, MARCH IF WE REALLY WANTED INPUT ON WHAT OUR BUDGET

WAS SAYING. >> YEAH.

I WOULD SAY BACKING IT UP A COUPLE MONTHS DECEMBER, JANUARY BECAUSE THERE IT TAKES TIME. WE'RE NOT GOING TO GO HERE IS WHAT CHANGES. THE NOT HERE IS WHAT WE'RE GOING TO DO COLLECTIVELY IN OPEN SESSION.

IS THIS THE DIRECTION THAT THE BOARD WANT TO HEAD? OR ARE THERE CHANGE THE BOARD WOULD LIKE TO DISCUSS AND

[02:10:03]

ULTIMATELY VOTE ON. >> MY SECOND QUESTION IS WHERE DOES THE MONEY GO. I WROTE DOWN BEFORE YOU EVEN STARTED TALKING THAT USUALLY YOUR SALARIES ARE 80 TO 85%.

WHAT CAN YOU EXPLAIN ABOUT OUR HOURS ARE 65%.

WHY IS THAT NOT MORE THAN THAT NUMBER?

>> 20? >> SO THE 80 TO 85% OR REALLY THE 85% IS LOOKING AT THE UNRESTRICTED FUND.

>> I'M LOOK AT OUR SALARIES. USUALLY 80 TO 85% IS STAFF BUT THIS IS 65%. WHY IS THERE SUCH A GAB?

>> IT'S THE TOTAL FUND SO IT INCLUDES RESTRICTED AND UNRESTRICTED EXPENDITURES. SO THAT IS GOING TO SUPPRESS THE AMOUNT SPENT ON PEOPLE BECAUSE A LOT OF THOSE UNRESTRICTED DOLLARS AREN'T SUPPOSED TO BE USED FOR ONGOING PEOPLE COSTS.

THE THEY ARE INTENDED TO GROW PROGRAMS, SUPPLEMENT PROGRAMS AND SO FORTH. THE OTHER COMPONENT IF WE JUST ISOLATED THIS TO THE UNRESTRICTED YOUR PERCENTAGE WOULD DEFINITELY BE UNDER THE STATEWIDE AVERAGE BECAUSE OF THE INVESTMENT IN THE FIELDS THAT THE BOARD HAS AGREED TO.

>> I APPRECIATE THAT BECAUSE THIS IS MY FOURTH YEAR AND I THOUGHT IT WOULD JUST BE THAT. MY NEXT QUESTION IS I KNOW WE TALKED ABOUT SPED. I KNOW WHEN WE WENT TO 16% TESTIFY 13%. DO YOU HAVE A PERCENTAGE POINT AT THIS POINT? I KNOW YOU SAID 10% AND WE WERE SUPPOSED TO BE 40% BUT I WONDER WHAT IT IS AT FOR NOW.

>> THE% PER TOTAL SPENT BUDGET? >> THE PERCENTAGE WE ARE FUNDED

THROUGHAL FROM A. >> IT JUST WENT UP AND I DON'T HAVE THAT NUMBER RIGHT NOW BUT IT DRIVEWAYED 30% PER STUDENT.

>> YEAH. I WROTE THOSE NUMBERS DOWN.

I'M JUST WONDERING TOTAL PERCENTAGE.

I WONDER IF YOU CAN GET IT TO US.

>> ABSOLUTELY. >> THANK YOU.

I HAVE ONE QUESTION. I DON'T KNOW IF ANYBODY IS ABLE TO ANSWER IT BUT I DON'T KNOW WHO GOES AND ADVOCATES FOR THINGS LIKE THIS BUT IN MY OPINION IF 3% IS REQUIRED FOR YOUR REVENUE BUT THE GOVERNANCE OFFICE IS SAYING 17%Y DOES THE STATE JUST RAISE IT SO PEOPLE IN THE COMMUNITY AREN'T QUESTIONING US ALL THE TIME ABOUT OUR RESERVES?

>> SO THE STATE IT'S A MINIMUM REQUIREMENT.

>> IT DOESN'T MEAN IT IS WHAT WE ALWAYS NEED.

SO WHY DO THEY KEEP IT SO LOW? WHY DON'T THEY RAISE IT SO THE

MONEY IS IN THERE? >> THERE'S A LOT OF VARIABLES THAT GO INTO THAT. IF YOU DISTINGUISHED BETWEEN WHERE WE WERE IN 2021 AND WHERE WE ARE NOW AND EVEN GOING BACK TO THE LAST RECESSION. THE 3% IS NOT FOR ALL DISTRICTS.

IT'S 1%. SAN DIEGO UNIFIED IT'S 2% BECAUSE THEY ARE MUCH BIGGER. SMALL SCHOOL DISTRICT IT'S 5% OR

A FLAT DOLLAR AMOUNT. >> BUT YOU'RE KIND OF MAKING MY POINT NONE OF THAT IS ENOUGH. WHO DO WE ADVOCATE TO TO GET

THEM TO RAISE IT? >> I DON'T KNOW THAT THERE WOULD BE A LOT OF TRACTION BECAUSE OF WHERE THE STATE IS AND I THINK THEY WOULD SAY WE HAVE PLENTY TO COVER YOU.

DON'T WORRY ABOUT IT. IT WOULD BE A VERY CONTENTIOUS ITEM TO TAKE THAT FORWARD THROUGH THE STRIPE MANDATE THAT THE ENDING RESERVE BE RAISED. THE MAIN OPPONENT TO THAT WOULD BE CTA. THEY JUST TRIED TO PUSH THROUGH A BILL AT THE END OF THIS LAST SESSION THAT WOULD ACTUALLY CUT OFF ONE OF THE YEARS OF THE MULTIYEAR PROJECTION TO MAKE IT DIFFICULT TO FORECAST. WHEN YOU LOOK AT THE OPPOSITION TO DOING SOMETHING LIKE THAT, I DON'T BELIEVE IT WOULD BE

PALATABLE. >> THEY SHOULD TALK TO PARENTS BECAUSE THAT'S A BIG TOPIC BUT I UNDERSTAND.

AL I GET IT. >> AS A BOARD AND THERE ARE A NUMBER OF BOARDS THAT DO THIS. WE DON'T REALIZE THAT IS SUFFICIENT AS A BOARD. AND WE WANT TO DO SOMETHING

GREATER THAN THAT. >> I UNDERSTAND.

THANK YOU. AND MY LAST QUESTION FROM THE DISTRICT MORE I WANT TO THANK YOU.

THIS QUESTION IS NOT A REFLECTION OF YOU AND ALL THE GREAT WORK YOU DID HERE BUT ME PERSONALLY THIS WAS AWESOME.

BUT I WOULD LIKE TO GET IN THE WEEDS MORE.

[02:15:01]

HOW DO WE SPEND ELOP MONEY. CAN YOU GO TO PAGE 29? IF YOU LOOK AT SOME OF THESE THEY ALREADY HAVE THE TOPICS FOR YOU. IF WE'RE LOOKING AT LET ME GO BACK LET'S SAY 34. I WOULD LOVE TO HAVE SEE HOW MUCH WE PAY INSTEAD OF ONE BIG AMOUNT FOR SERVICES HOW MUCH DO WE PAY FOR THOSE INDIVIDUALLY. I FEEL LIKE WE ALREADY HAVE OUR TOPICS RIGHT THERE. I WOULD LIKE TO TALK ABOUT -- I'M JUST THROWING A NUMBER OUT THERE.

THAT DOESN'T HELP ME. I WOULD LIKE TO SEE HOW MUCH DO WE SPEND ON CERTAIN THINGS. YOU SENT US UTILITIES WHICH IS AMAZING. WE COULD SEE OVER THREE YEARS HOW MUCH DO WE JUST SPEND ON UTILITY.

THAT ONE OF THE SUBCATEGORIES. I WOULD LIKE TO GET IN THE WEEDS MORE AND THINK IT WOULD BE HELPFUL TO UNDERSTAND EXACTLY

WHAT WE ARE MAKING. >> I BELIEVE THAT'S WHY YOU RECOMMENDED A STUDY SESSION, CORRECT?

>> THE YES. TO ME THAT WOULD BE THE PLATFORM AND VENUE TO DIVE IN DEEPER. I WOULD NOT SUGGEST FOR ONE SECOND THAT ONE STUDY SESSION YOU WOULD BE ABLE TO GO INTO DETAIL IN ALL THOSE THINGS BUT CERTAINLY IT WOULD BE A STARTING POINT OF HOW MUCH DO WE SPEND ON X, Y, Z RATHER THAN TRANSITIONING INTO WOULD WE LIKE TO SEE DIFFERENTLY AS A BOARD.

THAT WOULD PROBABLY BE MULTIPLE STUDY SESSIONS.

>> MAYBE BUT HONESTLY I WILL USE THIS AS ANOTHER EXAMPLE BOOKS AND SUPPLIES. IF I COULD SEE INSTRUCTIONAL MATERIALS I DON'T KNOW IF I WOULD NEED A WHOLE DEEP DIVE BUT I WOULD LIKE TO SEE A LITTLE MORE IN THE WEEDS.

>> THAT SPECIFIC ONE. >> HOW MUCH DO WE SPEND IT ON.

>> I DON'T WANT TO PUT SO MUCH WORK ON YOU GUYS BUT I FEEL LIKE THAT SHOULD BE A GENERAL QUESTION TO ASK THAT WE CAN GET AN ANSWER FOR. HOW MUCH DID WE SPEND AND GET AN ANSWER FOR? THREE BULLET.

GIVE US THE TOP THREE. BUT I THINK THAT WOULD GIVE ME A

BETTER IDEA. >> SO THE HOW IS INCLUDED IN THE BOARD PACTS. THE WHAT COMPONENT WOULD BE THE WHAT LEVELS ARE WE PLAYING WITH THIS $11 MILLION.

>> BOARD MEMBERS THIS BRINGS UP A REALLY GOOD QUESTION.

I HEAR THE BOARD OF TOURISM IS LOOKING AT DOING A DEEP DIVE STUDY SESSION. ANYONE ELSE?

>> YEAH. I WOULD BE INTERESTED IN DOING

THAT. >> I THINK IT'S UNANIMOUS.

>> SO WOULD YOU PLEASE GO AHEAD AND AGENDAIZYE THIS STUDY

SESSION FOR 26, 27. >> WE WILL BE IN CONTACT.

>> I HAVE A QUESTION THAT GOES BACK TO RESTRICTED UNRESTRICTED.

THERE ARE FOLKS FOCUSING ON THE RESTRICTED SIDE OVER THERE.

WHAT I HAVE NOTICED EVEN ON THIS BUDGET THERE IS SO MUCH OF THE COMMITMENT -- CONTRIBUTION. WHAT DID PEOPLE USED TO SAY?

>> ENCROACHMENT. >> YEAH.

NOT SUPPOSED TO SAY THAT. IT'S A BAD WORD.

IT JUMPS OUT TO ME ON THE UNRESTRICTED SIDE WE SPEND MOST OF OUR TIME ON WE SPENT 7 MILLION LESS THAN WE TOOK IN, SO PLUS 7 MILLION. BUT RESTRICTED SIDE WAS 45 MILLION DOWN. IT'S THAT CONTRIBUTION WE KEEP MAKING THIS DEFICIT SPEND AND I KNOW A LOT OF IT IS THE SPEND CO. I KNOW WE GOT SOME I SHALL DID A MONEY FOR SPECIAL EDUCATION. I KNOW THE REVENUE THAT COMES IN IS RESTRICTED FOR SPECIAL EDUCATION AND OTHER CATEGORIES

[02:20:06]

HOW MUCH TO GET THAT NUMBER CLOSER TO EVEN.

WHAT IS THE CHARGE THERE WITH THAT RESTRICTED MONEY.

WE JUST HAVE TO PROVIDE, LIKE, WHAT'S LEGALLY WE HAVE TO HAVE THIS AND HOW MUCH IS DISCRETIONARY OR IS IT 50/50 AND IS IT ALL MANDATED? HOW MUCH IF WE SPEND $35 MILLION

IN CONTRIBUTION. >> THE I THINK IT'S IMPORTANT WE BREAK IT OUT BETWEEN THE 7ISH MILLION FOR THE MAINTENANCE BECAUSE THAT'S ABSOLUTELY REQUIRED.

THE STATE REQUIRES THAT TO BE SET ASIDE.

MOST USE THAT TO PAY FOR GROUNDS AND MAINTENANCE STAFF OUT THERE REPAIRING THE BUILDING. SO IT'S NOT AS IF THAT MONEY IS SET ASIDE. SPECIAL ED THE CONVERSATION IS COMPLICATED BUT HOW ARE WE IDENTIFYING STUDENTS? WHAT IS OUR PROCESS FOR IDENTIFICATION.

THERE WAS A QUESTION ON HOW MUCH THE: FRO WAS PROVIDING.

BUT A BIG TOPIC WAS RATE WITHIN THE DISTRICT FOR STUDENTS WITH IEPS. STATE WIDE WHAT WE ARE SEEING IS WHILE ENROLMENT IS DECLINING OVERALL, THE NUMBER OF STUDENTS IDENTIFIED FOR SPECIAL EDUCATION SERVICEES IS GROWING.

THE AVERAGE USED TO BE 11 AND A HALF.

IT'S 13 OR 14% RIGHT NOW. A LOT OF IT HAS TO DO WITH COVID. STUDENTS ARE STUCK AT HOME FOR A WHOLE YEAR. THERE WILL BE SOME GROWTH THAT NEEDS TO HAPPEN THERE. THAT IS ONE TOPICAL AREA.

IS THERE ANYTHING WE CAN DO INTERNALLY TO KIND OF SCAFFOLD THAT BEFORE GIVING THEM A IEP. WHAT DOES THE 504 PROCESS LOOK LIKE, THINGS OF THAT NATURE. THE SECOND QUESTION THEN BECOMES FOR THE SERVICES THAT WE ARE CONTRACTING OUT, WHY DO WE HAVE TO CONTRACT THEM OUT? IS IT BECAUSE WE ARE UNABLE TO FIND QUALIFIED PROFESSIONALS? THAT IS LIKELY THE ANTICIPATE.

THE SOLUTION IS MUCH MORE DIFFICULT BECAUSE THERE IS A SHORTAGE OF THOSE PROFESSIONALS. IS THERE A WAY TO BRING BACK COST SAVINGS. I WOULDN'T SAY IT'S DISCRETIONARY. IT'S ALL MANDATED BASED OFF THE IEP. I THINK THE QUESTION BECOMES HOW DO WE PROVIDE IT IN THE MOST COST EFFECTIVE MANNER.

>> THANK YOU FOR THAT. AND I ASKED THE QUESTION THAT WHEN THERE IS A PAYMENT FOR PUBLIC SCHOOL THAT IS INCLUDED IN THAT OR IS THAT IN THE OTHER ITEM? SO WHEN WE PEA FOR NONPUBLIC SCHOOL IS THAT THE CONTRIBUTION

AMOUNT AS WELL? >> FOR ALL INTENTS AND PURPOSES YES. WE LOOK AT SPECIAL ED INCLUDING STAFF WE HIRE AND PAYMENT TO NONPUBLIC SCHOOL PROVIDERS WHERE WE SEND STUDENTS TO THOSE NONPUBLIC SCHOOLS.

THE AGGREGATE OF ALL OF THOSE COS EXCEEDS THE AMOUNT WE GET FROM THE FEDERAL AND STATE GOVERNMENT FOR PROVIDING SPECIAL EDUCATION SERVICES, SO THE DELTA IS THE CONTRIBUTION.

I DON'T WANT TO SAY ONE CAUSES IT AND ONE DOESN'T BUT IT THE AGGREGATE OF THAT SPENDING. YES, THAT IS A SPECIAL EDUCATION

EXPENDITURE. >> ANOTHER QUESTION SWITCHING GEARS A LITTLE BIT. WHAT CAN YOU TELL ME ABOUT THE

CAFETERIA FUND? >> I KNOW THERE'S A LOT OF

STREAMS AND FUNDS. >> SO THE CALF TEARA FUND IS FUND 13. YOU WILL HAVE A FUND 01 WHICH IS FINANCE FUND. ANOTHER IS FUND 13.

WHAT THE STATE REQUIRES FOR FUND 13 IS ALL OF YOUR REVENUES SPECIFICALLY FOR COMPLIANCE WITH THE NATIONAL SCHOOL LUNCH PROGRAM NEEDS TO GO INTO FUND 13.

[02:25:02]

THERE IS THEN A REIMBURSEMENT PROCESS WHERE THE NUMBER OF MEALS THAT ARE REPORTED OR NUMBER OF MEALS SERVED ARE REPORTED THROUGH A PLOTFORM CALLED CNIPS THROUGH THE CALIFORNIA DEPARTMENT OF EDUCATION WEBSITE.

ONCE THOSE ARE REPORTED THE FEDERAL GOVERNMENT REIMBURIES A PORTION OF IT. ALL OF THOSE ARE RECORDED IN FUND 13. AND THEN ALL OF THE FOOD SERVICE WORKERS, THE FOOD COSTS, THE COST OF MAINTAINING THE EQUIPMENT AND WHAT NOT ALL GO AS EXPENDITURES IN FUND 13.

>> AND WHAT DO WE GET BASED OFF ENROLMENT OR ADA?

>> IT'S BASED OFF OF MEALS SERVED.

>> GOT IT. I THINK THAT MIGHT BE IT.

THE DO YOU HAVE A QUESTION? >> I JUST HAVE ONE.

THIS IS A BONNIE QUESTION. FUNDS ARE REDISTRICTED CORRECT? AND LAST TIME WE USED THEM ON OUR PLAYGROUNDS, CORRECT? SO I DON'T WANT YOU TO CRINGE WHEN I SAY THIS BUT EVEN LOOKING AT RESTRICTED FUNDS I THINK WE SHOULD BE LOOKING AT THOSE TOO AND NOT TELLING YOU HOW TO USE THEM BUT HAVING A CONVERSATION.

I THOUGHT THE PLAYGROUNDS WERE A GOOD IDEA.

I KNOW AT THE TIME WHEN I WAS ON THE BOARD AT THE BEGINNING I WAS, LIKE, OKAY. I WOULD LOVE TO HAVE A CONVERSATION OF EVEN THE WHY. WHY DO WE DO PLAYGROUNDS I KNOW WITH THE WOOD CHIPS AND ALL OF THAT BUT EVEN ON THE RESTRICTED END I KNOW YOU SAID TO FOCUS ON UNRESTRICTED.

I STILL THINK LOOKING AT THE RESTRICTED AND HOW WE USE THOSE FUNDS WOULD BE IMPORTANT JUST TO HAVE A CONVERSATION AND KIND OF FEEL INVOLVED OR GET THE WHY OF WHAT WE ARE DOING.

THANK YOU. >> MIGHT BE MORE FOR STAFF.

OUR UPP NUMBER WAS 79%; IS THAT RIGHT?

>> YES, IT WAS. >> HOW DOES THAT WORK WITH DIFFERENT SITES LIKE GET THE DIFFERENT FUNDING.

>> I MIGHT GET THIS WRONG AND NEED TO FOLLOW UP IN MY MEMO.

ALL OF THE SITES ARE RECEIVING THAT ADDITIONAL .6 FUNDING.

I BELIEVE THAT A MAJORITY OF THEM MAYBE NOT TITLE SCHOOLS BUT A GOOD MAJORITY OF THEM. AND THEIR UNDUPLICATED COUNT CHANGES. THEY'RE NOT AT THE SAME COUNT WE ARE BECAUSE OURS IS AN AVERAGE. SO WE HAVE SCHOOLS THAT ARE 80,

90. >> WE GET FUNDING FOR OUR TITLE

ONE SCHOOLS. >> HOW MANY OF THOSE DO WE HAVE?

>> I BELIEVE THERE'S 7. >> AND WHAT IS WHEN WE HAVE A SCHOOL THAT GETS CLARIFIED WHAT IS THE BENEFIT TO THE SITE? IS THERE ONE OR A PORTION OF AN ALREADY SET AMOUNT?

>> I MEAN IT'S AN INTERESTING QUESTION.

HOWEVER, THERE'S COMPLIANCE THAT GOES ALONG WITH THAT AND MAKING SURE THAT THAT FUNDING IS GOING TO THE CORRECT STUDENTS.

>> THAT'S REALLY WHERE MY QUESTION COMES FROM IS THE ADDITIONAL FUNDING. AT ONE POINT IT'S NOT NECESSARILY ADDITIONAL FUNDING. IT'S MORE JUST THE SAME AMOUNT OF FUNDING SPREAD ACROSS AN ADDITIONAL SITE.

IS THAT TRUE? >> I THINK WHAT YOU ARE TALKING ABOUT IS IF YOU WERE TO ADD TITLE 1 STOOLS SCHOOLS YOU DON'T GET MORE TITLE 1 FUNDING AND THAT'S HOW YOU HAVE TO SPREAD IT ACROSS SCHOOLS. I MEAN SCHOOL SERVICES IS HERE SO THEY CAN CORRECT ME IF I'M WRONG.

>> SHE'S RIGHT ON THAT. CENSUS DATA THE FEDERAL GOVERNMENT USES TO ALLOCATE TITLE 1 FUNDS IS SEPARATE FROM UPP DATA TO ALLOCATE TO SITE. THERE'S CERTAIN THRESHOLDS A SCHOOL NEEDS TO RECEIVE THE FUNDS.

MOST MAKE THE ELECTIVE DECISION TO POTENTIALLY NOT INCLUDE ALL OF THE SCHOOLS THAT COULD RECEIVE THOSE FUNDS BUT DOESN'T MEAN WE GET MORE MONEY FROM THE FEDERAL GOVERNMENT.

[02:30:01]

IT JUST THINS OUT THE POT. >> I BELIEVE THESE QUESTIONS ARABLE PROFOR STAFF. HOW MUCH ARE THE CHANGES TO FUNDING AND WHAT CONTINGENCY PLANS ARE IN PLACE FOR POTENTIAL CUTS? SO DO WE.

OUR BUDGET ASIDE FROM THE RESERVES, IS THERE ANY OTHER WAY THAT WE'RE WORKING TOWARDS MAKING SURE THAT IF THE FEDERAL GOVERNMENT MAKES THESE CUTS WE CAN STILL CONTINUE TO PAY OUR EMPLOYEES AND ALSO MEET OUR OBLIGATIONS.

IF THE CONTINUED CUTS. >> WE ALSO LOOK AT WHAT WE RECEIVE BUT MOST IMPORTANTLY WE RIGHT SIZE BASED ON THE FUND THAT GO WE RECEIVE. SO WHETHER THAT IS STAFF, PROGRAMS THAT DON'T IMPACT DIRECTLY.

IN ORDER TO KEEP PROGRAMS WHOLE SO THAT STUDENT ACADEMICS.

>> I WILL GO BACKWARDS AS I TALK ABOUT THIS.

WHAT HAPPENS AT THE STATE LEVEL BECAUSE WHEN YOU LOOK AT THE CLASSER THAT COME TO US, 90 CENTS OF EVERY DOLLAR WE RECEIVE TO SPEND WHETHER UNRESTRICTED OR RESTRICTED COMES FROM THE STATE.

ON THE FEDERAL SIDE THERE WAS A LOT OF CONVERSATION ON THIS WHEN THE INITIAL PRESIDENTIAL BUDGET CAME OUT LAST YEAR COMES TO THE TITLE PROGRAMS. I CAN'T REMEMBER WHAT BOARD MEMBER WAS USED TO DESCRIBE THE POLICIES.

IDIOTIC WAS THE TERM YOU USED. I'LL SECOND THAT.

BUT I THINK IT'S IMPORTANT WHEN IT COMES TO SENSITIVITY.

THOSE ARE A VERY, VERY SMALL PERCENT OF OVERALL REVENUES.

THE MAJORITY OF THE GENERAL REVENUES THEY RECEIVE ARE FROM SPECIAL EDUCATION. THOSE HAVE NEVER BEEN ON THE CHOPPING BLOCK. EVEN TITLE ONE HAS NOT BEEN ON THE CHOPPING BLOCK. I WOULD 3% IS SPECIAL EDUCATION FOR TITLE 1. THE TITLE 2, THE TITLE 3, THE TITLE 4. SUPPORTIVE OF THAT.

A TINY PERCENT OF THE DISTRICT'S OVERALL REVENUES AND WOULDN'T HAVE A REAL SIGNIFICANT IMPACT IF IT GOT THROUGH CONGRESS SOME

WAY SOMEHOW. >> THANK YOU.

>> JUST A FOLLOW-UP ON THAT. WE HEARD AS BOARD MEMBERS THAT EVEN IF WE GOT A SMALLER PORTION OF STATE FUNDING, IT WOULD MAKE AN IMPACT ON OUR DISTRICT BECAUSE OF THE SIZE OF IT.

AND IT MAKES A HUGE DIFFERENCE WITH THE EXAMPLE THAT YOU USED

WAS FEDERAL REVENUE FROM 4 TO 3. >> WE CAN SIZE IT RIGHT NOW.

IT WOULD BE 4% OF OVERALL REVENUES.

THAT WOULD BE IMPACTFUL. >> AND THE ACTUALITIES OF HOW THAT DOESN'T REALLY CORRELATE BUT IN ACTUAL PROGRAMS AND HOW IT AFFECTS STUDENTS. THAT HAS A HUGE IMPACT.

>> TO PUT NUMBERS TO IT. IF THE FEDERAL GOVERNMENT SAID WE'RE NOT FUNDING CALIFORNIA BECAUSE WE DON'T LIKE CALIFORNIA. THEY MIGHT SAY THAT.

>> THE WE ALREADY HEARD THAT. >> OUR EXPOSURE IS $7.5 MILLION OR $7 MILLION. THAT WOULD BE PAINFUL.

THOSE WOULD BE THE TWO BIGGEST PROGRAMS THAT WE RECEIVED MONEY FOR. I WOULD SPITBALL AND SAY THAT'S 5 TO 6 MILLION OF THAT $7 MILLION NUMBER.

SO IF THE PLAN WERE TO GET THROUGH WHICH HAVE A CUT TO THE

[02:35:05]

HAVING A BUDGET CRISIS. >> ARE WE TAKING ADVANTAGE OF ANY GRANTS THAT COULD SUPPORT STRATEGIC INITIATIVES?

>> WE HAVE GRANTS THAT ARE WITHIN CTE ON THE ACADEMIC SIDE, SO ASK MRS. CARTER TO SPEAK TO THOSE.

>> WE HAVE OUR TYPICAL GRANTS WE APPLY FOR EVERY YEAR AND HAVE BEEN SUCCESSFUL IN SECURING AND WE HAVE THE GRANTS ON THE SLIDE

THERE WE ARE UTILIZING AS WELL. >> OTHER THAN THAT THERE'S

NOTHING ELSE. >> SOME THINGS THAT I HAVE SEEN THROUGH. CAN THINK OF SOME OTHERS.

>> TAKING ADVANTAGE OF THE GRANT.

>> AND THAT'S WHERE MENTAL HEALTH.

>> CHILD AND YOUTH BEHAVIOURAL NEEDS.

>> WE CAN RUN A LIST FOR YOU. IF YOU WANTED A LIST OF THE GRANTS THAT WE CURRENTLY HAVE WE CAN DO THAT.

>> YES, PLEASE. AND WE DO STILL HAVE A GRANT

WRITER ON RETAINER. >> A CONSULTING COMPANY.

>> SO WHENEVER WE NEED THEM, WE REQUEST THEM TO START WORKING ON

SOMETHING. >> PERFECT.

THANK YOU. >> I DO HAVE ONE MORE QUESTION.

FIRST OF ALL THANK YOU FOR THE PRESENTATION.

DID YOU AWESOME. THANK YOU.

THERE WAS ONE PART AND IT'S MORE FOR MY OWN CLARITY.

THERE WAS AN ITEM WHERE USE OF FACILITIES GOES IN AS REVENUE.

JUST GENERALLY SPEAKING WHAT ARE THE RULES ON THE USE OF FACILITY REVENUES? IS THERE A.

DOES IT HAVE A COTHAT ONLY REVENUE POSITIVE? OR IS THAT JUST COST SO IT'S KIND OF LIKE A REVENUE THAT

BALANCES OUT IN THE END ANYWAY. >> I WOULD HAVE TO GET BACK TO YOU ON THE DETAIL. I KNOW THERE IS A COMPONENT WITH THE CIVIC CENTRE ACT WHERE SOME EXITS GET FREE USE OF FACILITIES BECAUSE WE ARE A PUBLIC SPACE. WE WOULD LET SAT PREP COMPANIES COME IN AND USE OUR CLASSROOMS AND CHARGE THEM FOR THE COOF THE CLASSROOMS. IF A PATIENT WANTED TO USE THE GYM WE CHARGE THEM FOR AND I CAN GET BACK TO YOU WITH SOME ED CODE VERSUS WHAT WE CHARGE FOR COST VERSUS NET INCOME.

BUT YOU'RE RIGHT. WOULDN'T NECESSARILY BE A NET

POSITIVE FOR US. >> IF YOU CAN GET BACK ON BREAKING THAT DOWN. NO THANK YOU.

>> COULD I JUMP ON THAT ONE TOO. COULD YOU ALSO GET INTO THE PROS AND CONS OF ACTUALLY RENTING OUT OUR FACILITY.

I KNOW WE HAVE SOMETHING THE DEBATE IS REAL AND WOULD LIKE AN EXPERT TO GIVE US THE PROS AND CONS SO WE CAN WEIGH AND HAVE A

FULL DISCUSSION ABOUT THIS. >> ANY OTHER QUESTIONS? THANK YOU SO MUCH. THAT WAS SUCH A GREAT PRESENTATION AND THANK YOU BOARD MEMBERS FOR YOUR QUESTIONS.

>> ALL RIGHT. THANK YOU.

[02:40:09]

>> THERE THERE IS NO OBJECTION THIS MEET IS ADJOURNED AT 7:19 P.M. UNTIL THE REGULAR

* This transcript was compiled from uncorrected Closed Captioning.