Schulenberg's office can get going with the process of operating school. So that's kind of the next steps and what I know so far. Okay, this thank you um Pat this isformational only but I will open it up if uh any of the board members have any questions for uh for Mr. Sloer this I don't have a question but thank you very much that was very informative I'll be spending a lot of time thank you okay great all right thank you okay item two this isformational presentation on governor's may revision for 202526 state budget and that'll be Matthew Schulenberg thank you as I am connecting to the screen I'd like to call the board's attention to a couple of items you you have at your station. It's a one-page color document produced by school services. It's they call it the pocket budget. It's just kind of a quick summary of some of the uh some of the main points uh from the May revise and excuse me and then you do have a copy of the slides I will be presenting this evening.
Um, so I think probably the goal that I feel most strongly about is our outreach goal. Um, we've been tracking a lot of different water quality issues within the city. Um, staying up to date with what CARD, which tracks the GMAN plume is up to. Um, we've made connections with the Washna County Water Commissioner's Office. Um, we had a member from the Heron River Wershed Council that kept us informed and up to date on what they're working on. Um and I think within the last year we did have RRD come and give a presentation and I also gave that presentation on water uh frameworks. Um so I felt like we we had a lot of sort of good um good outreach over the past year. Um we had a goal to work on nutrients and ecoli issues. Um we did that through coordination with the middle here on partners group where we had um Steve Brown attending those meetings and bringing us updates on what was going on there.
I've I've done ADUs in in Ashland. Um as well as helping with the bylaw. Doug Scott obviously would be involved with that. And there may be some other components um components as well. There's there's a series that happens on the fall and the spring that is led by the town manager's office that is citizens academy which is basically like an introduction for residents to know how to like each of the departments work here how you like pull permits how you do those kind of things and Doug who is our building commissioner and zoning enforcer um provides information on it. So probably would be a great idea to maybe reach out to both of them and see if there could be an opportunity to kind of like explain residence and to have some kind right and to have some kind of um uh some kind of documented um step by step you know this suggested if if you're interested in doing this what do I do first who do I call what do I you know what what do I what do I do right to build an ADU I know builders who build ADUs like like they obviously want to volunteer their time to teach the public.
Um my disclaimer, um these are all slides as produced and presented by school services yesterday during their May revision workshop. I've taken their 120 slide presentation and truncated it down a little bit. I plan on spending a little less than three hours going over it this evening um as they did yesterday. So first off um we'll go right to this one. Uh kind of some themes identified by school services. you'll see in the top left there. Um they they mentioned significant financial and economic uncertainty at both the national and the state level. Um one of the most concerning things that school services focus focused on is the bottom left first seen in the governor's uh proposal in January was the plan to underappropriate the current year Prop 98 minimum guarantee. Um it was originally 1.6 billion. Um he's 300 million to our favor. So, it's now only 1.3 billion um but it's still a another um kind of maneuver number two um as the governor attempts to manipulate Prop 98 and the minimum guarantee for schools.
Um and then we also started our chlorides work group. Um so salt and chloride in our watersheds um is a huge problem for aquatic life. Um, so we worked with Kelly McCabe. Um, she's from Hiron River Wershed Council to identify some goals that we want to work on going forward. Um, we identified some creeks that are being impacted by chlorides and um are making plans for uh next fall um what we can do to help reduce salt. Um, so that was a pretty big um achievement for us. Um and then we also are being involved with the um Ann Arbor comprehensive plan workg groupoup meetings um for storm water. Um so those were sort of our four target areas and what we were able to accomplish. Um and then the next slide Erin. Um these were some issues that we've just been tracking. Um so Gellman generally but we we had a highlighted focus on um an MS4 permit issue with um 14 dioxane seeping into um storm water um our MS4 outlet into the Hon River.
I mean, I want to make sure it's I don't want it to turn into a sales, which is not what I want. I want it to be, hey, this is educational. This is how you get to that stage. Um, yeah. Sales pitch or something. Yeah. So, definitely that's Uh um like I said, it's actually on my to-do list after that discussion with the resident about how to to talk to Doug actually about um about that idea and um this I think I think he would we would want him at the table. So great. Anything else? Just couple ones. Good. Well, they'll always be in the we'll always be keeping it in in the binder. Um you've been here forever, right? Doesn't look like it's been five. It's up to six. Six and a half. Okay. So, back to my front page here. All right. Um, yeah.
Top right may revision projects lower revenues and increase costs of health care in the current year and near-term. Um the health care this particular point refers to is the medical program. Um few years back they really opened up the roles for the medical. They've enrolled many more people and it's uh several billion dollars over budget on the nonprop 98 side in the state budget. Uh the economy uh you'll see the big three in the top left. The big three are the three main sources of tax revenue at the state level. Personal income tax, corporation, and sales and use tax. They're projected to be about 4.8 billion over the three-year budget window compared to the governor's January proposal. And the three-year budget window is actually very interesting. It's not the same as our three-year budget window. When we're building our budget for next year, we have to do next year and then two out years.
So we were tracking that pretty closely and are still brainstorming ideas on what we can do about that. Um we're tracking a POS issue at uh this is actually a Scio Township property. Um but there's some chance that liable party might be Gman. So it's it's just a big big issue we're tracking. Um we've been following um some coronated groundwater issues near the Eaton Argus area. Um and then um Steve has been working on a benzene smell that keeps popping up at West Park. Um we've been working on a lakes and empowments monitoring resolution. Um reviewing um chapter 33 which is Ann Arbor storm water ordinance and then as I said chloride we're focusing on three specific creeks within um Heron River wershed and looking into some options um for the future to help us do salt smarter in the city. Um, and then my last little thing, I think going forward we may rebrand um, in honor of the sustainability commission, maybe to sustainable water work group.
So, basically it looks like we're just up to our updates. Um so on section eight of the agenda it's just a list of as I mentioned before a list of different committee committees that are either um either we have a representative one or two representatives on that committee or um the design review committee which is a committee that sits under the planning board. Um there's not really a project in front of them right now besides the um the soccer fields, but I think they've already given their their notes back to us. I didn't think it was going back again, at least not at this time. Maybe in round two. Maybe it will, but we so we don't know. Um but um Anna, did you is there anything with comp else with comprehensive plan you wanted to talk about under the updates part or I I mean the only update I'll have is some concern I'm going to express that we're down a member of the planning board obviously we're down we don't have a planner in the room and the budget for the consultant is running out and yet there's quite a bit of writing to do to wrap it up uh and public forms to be had.
We're actually going all the way to um what is that? 20 June of 28 in our multi-year projection in the state budget's three-year window. They look back a year. So, they're looking at 2324 uh looking at the revenues that have come in for 2324. They're looking at the current year 2425 and looking at the revenues that have come in so far. And then they're looking at the next year. That's the three-year cycle they're referring to in the governor's budget proposal. They mentioned the tariffs. Don't know what the actual effect of those tariffs might be on California. Um but you can you can read those points. Uh a couple other things. The cost of living adjustment. Uh as we sat here a year ago, the cost of living adjustment for next year was around 3.3%. That was the planning cola. So we would have used that in our multi-year projections in the previous budget cycle in the previous mys and interim reportings.
I don't know. What do you guys think? Yeah. Okay. Sweet. Um, okay. So, that's all that's my update. Very good. So awesome job, Sarah. Yeah, thank you. I'm glad to update you all on like everything because yeah, so many different issues that have come up in our year and it's just been really really fascinating to be in the role. So very good. Thanks. Uh John Miski reported the energy commission did not have a meeting last month because they did not have quorum. Um parks commissioner Marson. Hi. Yeah, we just met on Tuesday. Um and uh summer season uh in parks and wreck uh starts this weekend. Hard to believe today, but true. Um we had a presentation on the border to border trail west of Barton Nature Area. Um the county and its various organizations are uh starting the are in the planning phases for how that how the trail is going to align with here on River Drive.
So I just want to add some urgency to us uh on those two items. Okay. Um other than that concern I have no no update. Okay. All right. And when is the next meeting for that one just happened right happened. There is a subcommittee that I'm on that's meeting on Tuesday to review some additional items. I know the uh comprehensive planning committee is doing its own review as well. I don't recall what our next official meeting is. I think it's either next week or the week after. I believe it's the week after which is why the subcommittee of the comprehensive plan committee is meeting Tuesday. Okay. All right. Thank you. Where did the funding come for the uh it was voted for on town meeting. Um I don't remember what meeting but we voted for the money. It came out of like the general budget.
Um it is now 2.3 for next year. So that's of course that's u significantly lower as the cola in the current year was 1% 1.07 for this year which at a uh at a point early on in the budget process it was projected to be closer to four. Um there were some significant increases to the ELAW program and UTK the universal transitional kindergarten. So there's come some concern that those would survive and that the commitments the governor has proposed will survive as they continue to negotiate with the legislature. And of course the volatility in the stock market really does affect the capital gains both short-term and long-term uh personal income tax at the state level because that's a u that's a major portion of the personal income tax that the state of California collects. uh the state budget in the economy. They're looking at uh projected increased unemployment in the state of California.
And then we passed a resolution to enter into an agreement with uh GEI consultants um for stewardship services in the city parks. And this is to the tune of $375,000 that came from um some federal funds. What stewardship and what what exactly are they going to be doing? Uh the work I think is uh TVD, but I believe it's going to be um sort of invasive species removal and uh assorted things. Um this was a grant that was put in a couple of years ago. Um and it's a joint thing between parks, forestry, and um there might have been one other body, I don't remember, um involved in it. And so, uh, they were awarded the contract or awarded the funds, uh, the grant and, um, there was some question earlier this year whether the because it's federal funding whether it was really going to come through.
I think the challenge uh I don't remember whatever money we put aside for the comprehensive plan the budget essentially the consultant team is I think Michael said July is their last day with us and meanwhile we have quite a bit of work that's going to go beyond July um to present this to planning board and then the public um so obviously that's a a challenge and We we need some support and we have no plan. Yes. I don't I don't remember what bucket it came out of. I'd have to ask Michael Herbert that. But um yeah, it was voted on at town meeting. Is it worth like because it sounds like is the consultant based on like months or is it based on hours that they work? Like if we stop I believe it's hours based because the consultant provides a bill to Michael. At one point Michael had indicated he would show the comprehensive plan committee the bills but we never saw them.
Um wildfire displacement and construction delays. Of course, they're negatively impacting um employment growth. The GDP is expected to continue continue trending down. Now, the first quarter GDP, that's a national economic measure, the gross domestic product. So, the first quarter GDP this year was actually a negative. And anytime the GDP at the national level is negative two quarters in a row, that's the definition of a recession. Um, but the economists that I've heard speak are just are projecting a positive GDP for the second quarter. That's the quarter we're currently in, but not a significantly positive uh gross domestic product. Um, you see they mention inflation. It's actually coming down to the Fed's target of closer to 2% but it is projected to rise uh in the next two years. State revenues do remain strong in the current year. Um that that really drives the concern of the underappropriation that the governor has proposed in this year but they are projected to slow down in the next.
It appears that it will. And so, um, uh, yes, so work is going to proceed. the summer season. Chris, if I can add on the GEI consulting work, it it it's going to be in uh some of the natural features like supporting NAP staff, removing invasive species, maybe doing controlled burns, things along those lines. So, similar what NAP staff would do, but it's only in six of the um nature areas and economically disadvantaged areas. I believe it was six, but yeah, thank you. Oh. Um, anything from council that they want to add? No. I I would just for my part, I'm excited to see the changes um with the sustainability commission and the collaborative work we can do with the previous energy commission. And I think the ideas and energy and conversations in this commission have been really terrific and I'm looking forward to continuing that.
I suspect it's a hourly model so there's a budget and we're running out of time. Yeah. Well, I just what I'm wondering is like is it worth like not talking to the consultant for two months while we get a planner and get you know a few more you know meetings to to get this so that when we hand it to the consultants like here this is what we need to finish up and I have no idea what's going on. So, please don't I'm just asking this question as Yeah. No, this is a really good question and I would encourage it to Michael. I I'm guessing there's a contract that defines the time frames because Michael pulled it out. You know, he was looking on his phone and he said that that's the the end of the contract period. Whether there's flexibility to kind of extend that is unclear right now.
uh domestic migration um the the out migration has slowed. Not as many people are leaving California. Um they are projecting the statewide population to increase slightly over the next couple years. However, the Department of Finance is still projecting uh significant school age population declines uh continuing. This is a quick look at what's called PIT. is personal income tax over the three-year cycle. You'll see first they look back at 2324. In January, the governor projected there'd be about 113.4 billion in personal income tax collected uh last year because it doesn't always come right away. Um he's revised his estimate to 115.2 which matches with the LAO, the Legislative Analyst Office. The LAO again is a nonpartisan group that advises the legislature. They do not work for the governor. The governor's team is the department of finance and they're the ones that come up with the numbers in blue.
and I'm grateful for everyone who's volunteering their time to be part of this group. Uh last was chair I'd say as we all know this is our last meeting for the environmental commission. It's been my pleasure to serve as chair for the past year. It's been a learning experience for me and I'm I'm also looking forward to sustainability to see what um see what the future holds. Change is always different and scary and fun. So let's see what happens. Um, Erin, I think next is a report out from staff. Yeah, thanks. I was also going to take a second to recognize um what this commission has done over the years to make our community better. I know it takes a lot of time and a lot of patience uh to do the things you do. Um, I was actually talking with Joe about doing a more um in-depth acknowledgement in the meeting in July because the energy commission didn't get a final meeting because they didn't have a quorum.