to an 8-unit residential component which brought the um the um all of that the commercial commercial square footage all along the front. Nice. And they did that for several reasons. One was because um they thought it was a bit more respectful to the other residences over there um of the other houses to kind of not have that traffic but to bring the commercial together. Um, and it also brought the commercial together to increase that walkability, that traffic along Pond Street in instead of bringing it back into this little commercial, little residential corridor. So, that was one of the things they wanted to go over. Um, the other one was that the project had become the project had been raised um what do they call it when it's uh platform? Is it the park construction? What was that? Podium construction. Podium construction. that was the word I was looking for that instead of the parking being on the first floor and the building developing in top of it um that that option was really too expensive for the project.
uh you'll see the ratios go from 12 to one to 10 to one. We are currently planning next year to serve our TK students at a 20 to two. So we'll have two two staff in the classroom with a maximum of 20 kids. Um and as you know, we are building additional TK classrooms at three of our school sites to handle the increased enrollment we're expecting and we hope show up in the fall. expanding learning opportunities program. I mentioned earlier there's some money proposed to expand this and how it's proposed to expand it. He did not propose to increase the rates rate one or rate two but he is proposing to lower the threshold for school districts for them to qualify for rate one. Um we qualify for rate one because our up is currently greater than or equal to 75%. He's proposing that threshold be lowered to 55% which would allow more districts to qualify for that rate rate one and they estimate that'd be about a 500 million ongoing cost.
So, the parking was um put in different places around the site. Um um and the buildings were are being lowered um so that uh the first floor will be residences on the ground and bring the bring the height down. So, that was the other thing that they kind of wanted to show that the the tunnel's still there. That was my first thing. Oh, they didn't take out the tunnel. And I think last time we suggested to move that residential and commercial together and I I really like this team where they really listen to you. They do and then come up with ideas to improvise. So looking forward to project. Yeah. So this has been a this has been a um developer that we've like I said that came before the planning board that um that we really felt we put out a suggestion and the next time you meet with them they they not only just incorporate it.
You'll see the total funding he's proposing goes from four to four and a.5 billion um for the ELOP expanded learning opportunities program learning recovery emergency block grant. This is um um I think the original L rebg that was uh sent out to school districts. It was about $7 billion across the state. Um the then they took some back, then they took some more back, then they gave some back to the schools, then they gave a little more back. Well, they still owe us a little bit to get to the original proposed funding level. So, he has proposed to fund that. Um and of course, now it comes with some more strings. Um to utilize these funds, eleas must conduct a new student needs assessment. Expenditures and actions must be included in the LCAP and they have identified training on mathematics and ELA frameworks are new allowable uses for these particular funds.
They really put in a big effort to incorporate it and really so we've been we've been kind of impressed with with that element of them. As I explained to them, however, obviously a meeting with two of us or one of us does not in any way um mean that there's any kind of consensus consensus of the board, right? that there's just um opinions of two individuals um giving some giving some guidance but those projects will come before the full board and um they expect that application I think the the the um owner was hoping for July um uh George Okama Okconor um said that he felt it was going to be August before they were actually ready to put in a formal application to the board which I was happy with because it will really get us time hopefully to get that planner and assistant planner on board and be ready to uh you know tackle that project.
Uh you will not see the LREBG funds currently in our LCAP. We we are allowed to add those funds and those goals in at the midyear update. I I I believe there are some other local school districts that are doing that same because we're still unsure if this is going to happen. It's still a proposal and our LCAP of course needs to go through the approval process here in the very near future before the state actually enacts the budget which this would be a part of if this proposal survives. deferrals. Um, great news. They canled one small deferral. They came back with one much bigger deferral. Um, you'll see the first line there. He proposes a TK12 deferral. That of course is us of 1.8 billion. Thankfully, that's not all us 1.8 billion, but we of course will be impacted by that. The state is using this as a budget and a cash deferral.
Were they able to do the calculation between condos and rental properties? That was one exercise he was going to go back to the board to check. they they did uh go through that and I I don't remember the exact um exactly how he described it but it ended up it's just a harder um financially getting financing for it is just a lot harder. Yeah, we it was one of the things like we asked if they could look at it and they didn't just they didn't just nyx it, they looked at it, you know. So, um and again kind of that yep, you know, listening obviously I don't have the proform. I wouldn't understand it if I did. Um but um but but we did talk about it. Um so that's the update on that and then um I don't have any others actually. Um so for next meeting we'll have the continuation of 240 260 Pleasant Street.
The state is pushing an expense from June, the expense of funding schools. They're pushing it from June to July. So they show a reduction in their 20 2526 budget because they're pushing it to their 2627 budget. It's also a cash deferral for them because they um they keep the cash a little bit longer, meaning we don't get the cash. Um that's about 25% of our June 2026 aortionment if you look back at the last couple Junes that ratio. So what happens if the all the cash doesn't flow? We will we will do a cash flow um analysis. As we get to this um you'll see at the bottom right it says the burden of borrowing lies with the LEA to ensure adequate cash for operations. This goes right to the tax revenue anticipation note that we spoke of a couple board meetings ago and that we um we propose that resolution.
Um I'll make sure that that legal is ready uh to move forward. There is two uh applications um that have been submitted and they also will be coming in front of the planning board and both of them are for the four Albert raid drive um they are wireless communication um projects one is from T-Mobile the other one is from AT&T um and the applicant is Crown Castle which it was the last one that we uh reviewed so you know everything will be ready for those uh public hearings to go by so on the next agenda the three of them will be present Um, I also got an email today from George Connors relating another project 55 Tilton. Um, and he was requesting also to look for an informal meeting with the planning board. Um, I'm unsure exactly what is the size density that he's proposing for the development.
The board did approve that resolution to uh be a part of a TR pool if need be. This is exactly what causes us to be a part of a pool if in fact our cash um is low at that point in June as we work through the year. I just wanted to show this slide to show you the impact of the projected declines in school age populations. You'll see Los Angeles is the biggest at minus 18.7%. Los Angeles County, they're projecting significant school age declines. Uh you'll see Placer County um growing. I'm sorry I can't tell you exactly where Plaster County is. I know it's up north. Um but um um guess it's a great place to go. One of the things I did want to point out because we are experiencing this um property liability and workers compensation insurance rates. Ours ours our property and liability went up about 25% from last year to this year.
Um, but I'll work to see if it fits on the next agenda or if he has to be a little more move to the second agenda. We'll work on that just just setting it up. Um just so like I know that it can be like an extensive agenda already. Um and we'll see who will be the the main person staffing for that. Um yeah and then the only recurrent update is that uh the YMCA at some point will be applying. Hopefully they are able to do so before um or while I'm here. So I'm able to put all that kind of like legal out process. If not probably will be a little bit of a time until somebody can start working on those logistics. Yeah. Okay. Um, yeah, another thing I wanted to mention, um, and I remembered it because of the Tilton Street project, which may be one I I will need to look into it, but it may be one in which I need to recuse myself.
Um you'll see um the top right bullet point AB218 has created a lot of exposure for school districts and liability insurance. I think um you'll read about that often um here in the years to come and that does affect the insurance pool that we belong to um payouts um so of course they raise premiums um for the entire pool and on the bottom workers compensation um you'll see their claim severity continuing claims and medical inflation are driving workers compensation costs costs and we are experiencing those premium increases also as we uh get that information from our insurers. This is the dart board. You'll see the probably the most important line that everybody looks at is the doof planning cola. That's the department of finance planning cost of living adjustment. So that's the group that works for the governor. Um you'll see this year was a 1.07.
Um, so, um, which reminded me of our associate member that I was going to ask you that. Yeah. that now that the election is done, I've been kind of waiting, you know, it's one thing at a time, but now that the election is done, we'll start looking uh and maybe I'll get that posted right away to start looking at the associate member. I do know that um that even another uh talent form came in uh just in the last couple days. Sue Roby let me know about someone interested specifically as the associate position on the planning board. So, um I I think there's an interest in there of multiple people already um that might be that might be interested in that position. Um so, uh it would be good to it would be good to get you know that filled as well. What about the other guy who was going for the right that might be one of them as well like so um but what we do is we we publish it that the position is open.
That's not even planning anymore. That's true. The 2.3 is next year and the 26 27 27 28 and 2829 planning colas are exactly that they are planning colas. We will use those in our LCFF calculator in our multi-year projection but those are of course subject to change just as I mentioned earlier. The 2526 cola was originally um about a percent higher than it ended up and the 2425 cola at 1.07% at one point was a planning cola close to four. Uh so those do have significant effects on our LCFF revenue because that's the COLA is applied to the base grants in the LCFF calculation. Uh this is really the only slide that I think I include on the federal and I just want to point the school services advice is on the top right in the dark red. Assume current federal funding levels will continue and that's what we are doing um in our budget year for next year.
It maybe has already been out. Maybe it's already on the current updates on the weekly newsletter that Michael sends. There are the opening positions for staff and also for boards. Yeah. For open pos. So we we um we take in applications and then um that seat is a joint application, right? It's a joint application between the planning board and the select board. Joint appointment. Um and then it's a um yeah, joint appointment and then um it's a three-year seat. So this is for the associate seat. For the associate seat. Yeah. Yeah. My understanding is that the gentleman who opposed you, Scott, who came in um second, has already applied for that associate position. So that's good. We already have an applicant from that's my understanding. Oh, I did not see that then. Um Yep. I heard about his application through the grapevine that he made it official either yesterday or today.
Will that change? Maybe, but we're assuming steady federal funding at this point. Uh, next steps in the budget development, you'll see there's a few of the points I've talked about. The two 2.3% COLA, school services advice is yes, go ahead. There's very little risk to that. That's the calculated statutory COLA. The governor has pledged to fund that and the legislature has also pretty much agreed to fund that that particular COLA. The LEBG additional funding, school services advice is no. We currently do not have that in our budget as I mentioned earlier, but when that hashes out in maybe August and September, you may see that in the first interim. Um, but most likely in the second interim after the LCAP midyear update, the TK ratio LCFF add-on that I mentioned earlier, the governor had originally proposed about 6,400 per TK. It's down to 55. You'll see school services is advising not to include that in the budget.
Once he lost the election, he immediately applied for the associate position. Oh, okay. So we can't great. That's great. I know I know he was pumped about trying to give back and wanted to get involved and wanted to be on stuff. So maybe maybe that's the maybe that's the application that uh that Sue mentioned to me. So Sam, right? Yeah, that's really I didn't see the name. She didn't give me a name and I didn't see it so I can't confirm. So but anyway, there seems to be some some interest there. Um um Yep. So um then we uh we have a joint meeting. We interview the candidates and we select someone to fill that seat. So, all right. It doesn't look like we know the upcoming meetings. June 12th, we've been talking about that. And then June 26, happily for well, maybe not happily for new board members.
It's a high risk level because the amount has already been decreased. We currently are assuming the 5500 may revision amount in our LCFF calculation for that TK add-on. The discretionary block grant school services has advised against including that in your budget because the amount was decreased. The allocation method allowable uses and amount may change again before the budget is enacted. We are currently including the proposal as proposed at the May revision for the discretionary block grant teacher preparation and professional development. That's that's um that's I I think that was about a hundred million across the entire state. So that's not large dollars. They it's already been reduced and repurposed. We haven't included that because we don't exactly know that how that's going to flow to districts yet. And the universal ELOP 55% threshold school services advice is no. The risk level is low, but we already qualify for the rate one at the 75% threshold and we believe we're going to maintain that up at the 75%.
We have a three-week break. This is one of the few times during the year that there's an extra Thursday between the last one of the month and the first and the second one of the month. So, it'll be a three-week uh break before um June 12th. Um but we'll meet then and then the next one obviously on June 26th. We don't have any meeting minutes to review this evening it sounds like. So um typically we get the meeting minutes back. There a few meetings ago and we review them and approve them. Um and they need to go up on the um on the website. So but we don't have any today. And so does anyone have anything before we adjourn? I wanted to ask kind of a logistical question which is does Scott have an email through our town website yet? Um the uh um Cindy has already let um Paul yeah she requested IT department to create one.
So we have included the uh the ELOP funding at rate one in our budget. um the road ahead. This just again identifies uh a couple couple points that 1.3 billion underappropriation. Are we going to get that back as part of Prop 98 in unrestricted funding or is it going to come with strings or are they going to suspend it? The 1.7 billion professional uh development discretionary block grant. Is it going to come like that how we have currently assumed in our budget for next year or is it going to come as a categorical with strings attached or a different a different uh uh distribution methodology the 1.2 2 billion for lower TK and the 515 million for ELOP. Um we've included both of those in our budget for next year again. But the questions are um as you'll see there, school services is very concerned that the legislature is going to look at those ongoing commitments and find other places to spend that money.