um uh attended the powow at Magnolia and what a beautiful event. Um I wish I could have stayed uh longer. Um and uh just one of the things there they h they um they had several um uh booths and food and it was a festival activity. Um I was under the impression of Powell was just one event, a dance um but this was from Sacred Hearts a a festival. Um I hope they do it again on our campus. Um we're very honored to have that. Uh, one of the dances was um um performances was highlighting women who have been uh abused and um and they had uh two young dancers and the way that the drummers um played and sang it just hit a a chord and just I started really uh crying because it was just an emotional uh moment. Um and there were several more dances after that that were they were very uplifting.
>> Any discussion? Right. We will be taking the vote via roll call. Mrs. Longshore >> I. >> Mrs. Tucker >> I. >> Ms. Apara >> I. >> And Mrs. be canon. I >> do move on or do we take a break? >> We have to wait because we don't have enough. Okay, we're going to take a break for a second. We are at item number nine. approved the second interim financial reports reflecting a positive cert certification for the period ending January 31st, 2026 and approve the expenditure reduction plan for 2025 26 and 2627. So moved. Need a second. >> Second. >> All right. Um Mr. Schulenberg, >> thank you. Mhm. >> Uh you of course had the slide deck uh Friday when the agenda was posted. So I'll go through it in the interest of time. Again, this is a second interim. It's one of the two required interim reportings each fiscal year.
Um so proud of the folks that put together the first uh regional event east esports event and the takeaway from that was um there was a wasn't even the final final but it was getting towards the final on the bracket. Um and it was in the other room not the three and three players but the single players. These two were battling um I want to say Compton High School and Catella and boy if you don't if just looking at them you could see the critical thinking and you know the the the comm the communication was inside their mind but uh because they had to do it by themselves. These kids have to learn over 900 different characters and they never know what their opponent is going to come come up with and they have to be battling um a a an offense as well as a a defense and knowing what their people do.
Um just to point out, as I mentioned previously, this does include the adjustments made after January 31st in the projected year totals for the tenative agreement that was approved with the Vooda just earlier this evening. Uh three certifications are possible. The recommendation at second interim is that we file a positive certification based on the assumptions that we have as of January 31st and into February. Um we are projecting that we will meet our minimum reserve and our financial obligations in the current and subsequent two years. And again that's just some information about some of the data that's used. And of course this presentation will focus on fund 01 the general fund because solveny is based solely on fund 01 and the restricted ending fund balance within fund one. So budget detail uh we adjusted our ADA when we got to second interim. Our first ADA reporting period in December showed some promise.
And you could just see the concentration in their heads. And um I was getting commentary from our partners from Fullerton um and uh and they were kind of telling me because I have no clue about any of these games and so they were telling me what's happening next. What's happening next? The moment the game was over, our Catella student didn't win, but he immediately got up and congratulated pat the student on the back. They shook hands. Um, this is a community of love and and if if the one thing that our students are getting out of that is building character, then it's it's a win-win. Um, the ambassador interviews as I attended that. Um, 25 students we had to interview 26 that day. That's a long day. We've got some great um great students. Magnolia's international event. and I couldn't only attend just a little bit, but I was able to um see the rehearsal of the um Magnolia uh choir and they had the Polynesian um dancers with that and what a beautiful combining um collaborative moment um singing in in uh Samoa Samoan language in the Samoan language.
So our um our ADA is now funded. Our projected ADA for this year is 12609 for our P2 reporting. So, we're utilizing that in our LCFF calculator. Um, that unfortunately is going to be our projected funded ADA for next year as we continue to project a slight decline and also a reduction in the cola next year. So, we're we're dealing with that. And then our projected at 12574 you see there in 2728 is the three prior year average, which is the um other means to calculate funded ADA. And we're projecting consistent TK ADA. Of course, this was the first year that was a full grade level. So, we'll have a lot more information in August when all the little three and four year olds show up for our TK program throughout our district. Uh, COLA between budget adoption and first interim was not adjusted, but with the governor's uh January proposal, they adjusted the COLA and 2627 down about 61 basis points to 2.41%.
uh the years of service award. Um Brad always has great comments to bring to us and the one thing um the the the highlight is just to see the proud um uh veterans of our district 20 25 and 35 and even 40 years of service. Um and the sad thing is that I know all of the memories that you brought to the table. I know all of the games and I remember all of the things that happened a long time ago. Um my Gulpa meeting we received an excellent presentation from Janette Castillo uh from thems um the the attended the celebration of life for Miss Massie. Uh the students loved her so much they put this on. Um Dr. Sai just facilitated it and it was uh probably one of the most beautiful services celebrations of life that I've ever attended. her husband was there, her daughter was there and one uh moment that um was replayed um a student had recreated um a duet that um Miss Massie had played with this particular student and they recreated on stage and to think about that um it was online when they did that performance.
And adjusted the 2728 COLA down 36 basis points from 3.42 to 3.06. And of course, the next adjustment is going to come with the May revision. Uh when they'll have the final final data points for the statutory cola for 2627. Of course, the legislature always has the ability to fund over or under the statutory cola. Um but the governor in his budget proposal did propose to fund the statutory cola for 2627. So that's just breakdown of our LCF revenue in the current year with the 12609 funded. You'll see each of the grades span a adas there in the components of the LCFF calculator. What flows to us under the base grant, the grades span adjustments in TK3912, the supplemental concentration and of course transportation and the transitional kinder add-on there is based on a per ADA allocation based on the transitional kinder ADA. Federal revenue um again that's restricted revenues 13.6 6 million in the budget for the current year.
So, what an impact um Miss Massie made on all of those students to um have those students do that for her. And um I just want to say reflect on the past month, especially amid the chaos um we often see in the broader world. Um I'm reminded of what's happening within our schools. Our students are thriving. Our teachers are working tirelessly. Our staff are nurturing talent, character, and resilience. Whether our students go on to become educators, professionals, artists, or parents, they are learning invaluable skills here. And I'm reaffirmed um during even uncertain times, our students are blossoming and building a better future. So, thank you to everyone who continues to support and nurture in them, showing us that even in the chaos, they they are building a better world for us in the future. And that's why I that's what I observed this month. So, thank you.
That breaks it down into the major federal programs. Again, this includes carryover from the prior year. And again, these are unearned revenue programs. We have to spend it to earn it. So, you'll see between now and unodudited actuals, that 13.6 million will change. Most likely, it will go down because we will not spend all 13.6 million in federal revenue. So, when we close the books, we have to adjust our revenue down to actual spending. So the expenditures and the revenue balance in those unearned revenue programs, state revenue, we have some unrestricted and some restricted. You'll see the major components there. Most of it comes restricted. Projected expenditures of course in 2526 we have included all negotiated settlements and the very recently approved tenative agreement with the VUDA in the second interim financial statements. to address our expenditure reduction plan based on the board resolution approved January 22nd.
Thank you, Trusty Mero. Um, I just have uh one quick uh report. I just want to thank uh Superintendent Dr. Frerieded, uh MissWan, Brad, um and Nancy for joining the meet and greet town hall, um and sharing your stories and and the role that you play in the district. Uh we got a lot of good feedback u from my parents afterwards, getting to hear everything that you do for the district. Um also want to thank Carl and John for supporting the event. Um so yes, thank you for being there. And with that, I will move to 15, advanced planning. Our next meeting is Thursday, April 9th, 2026. Um 15.2. Do I have any suggested agenda items? Seeing none, I will we are going to reconvene to close session. It is now 9:23 p.m. Thank you.
Attached to the packet, the expenditure reduction plan slides were included in this presentation, but I also pulled them out as a separate slide deck attached to the item so you could look at those easier. Um, in the current year, the board direction was to uh cut at least 2.5 million in ongoing expenditures. Uh, we did clean up some vacant positions. We either place those on admin hold, which does eliminate the budget for those positions, or we did lay off some vacancies. We were able to reduce unrestricted expenditures in the 4,000s and 5,000s. Again, I'm sorry I didn't put it up there. The 4,000s is books and supplies. The 5,000s is services and other operating expenditures. What happened? Okay, this slide. Um we are also able to facilitate some position funding changes. Um we did not adjust any into um short-term or one-time. We adjusted some uh unrestricted general fund staffing into some ongoing restricted categorical programs.
You'll see the Prop 28 routine restricted maintenance and ELOP being those programs. So we were able to achieve just under three million in ongoing expenditure reductions within the 2526 budget. Uh just some detailed expenditures. You'll see that's the unrestricted 4,000s there about 5.6 million in unrestricted. That's what current is allocated for spending. Again, as we move to estimated actuals, those numbers will be refined based on actual spending. Uh possible orders that have been ordered that won't come until next year. There's a lot of variables. Some of this is district held money, but the majority of it is um actually I won't say majority. Some is district held, some is site held principal discretionary funds. That's the 5,000s. What's currently budgeted to be spent on the unrestricted side of the 5,000s. Again, as we move toward estimated actuals, those numbers will be refined to actuals and projected.
And as we close purchase orders that may have been um encumbered for for 100,000, we only spent 90. That adjusts our expenditures to match actual. There's our 6,000s on the unrestricted side. Now the restricted same of same object codes of course. Um actually on down at the bottom there we are assuming expensing available restricted resources with the exception of the learning recovery emergency block grant allocation we received this year approximately $967,000. We have no expenses tied to that because we currently do not have a plan. Uh Mr. Schlasser is working with our district advisory committee to get a plan in place within our LCAP. Those funds um will we are planning to expense those funds next year according to the plan that um will be approved as part of our LCAP. So there's our 4,000s our projected year totals currently um un I'm sorry restricted many unearned revenue programs where when we post the unearned revenue carryover revenue we have to post corresponding expenditures in those unearned revenue programs because they are required to balance.
Same in the fives planned expenses all restricted resources and the sixes again all restricted resources. So as we move into next year uh LCFF revenue again there's the 12609 same funded that's our current year projected P28A with that 2.41% 41% cola the components of the LCFF calculator total 195 rather than 190. So it is an increase. You'll see it comes comes across all those base grant grades span adjustment supplemental concentration and as pieces of the LCFF federal revenue. We're back to fairly normalized level of federal revenue. We have to take out all the carryover revenue that was posted in the current year. Uh so we're back to about 10.7. We did get guidance from the county that the the fed budget for 2627 we're looking pretty good in terms of the federal program. 2728 does bring about more questions at the federal level. Um but I it appears that we're in good shape for 2627 with our federal program revenue state revenue or unrestricted um restricted.
You can see some of the detail there. One of the things I would like to point out under the restricted, we do take out the carryover. We take out the one-time program revenues received in the prior year, which is the year we're in right now. We are assuming receipt of the proposed discretionary block grant from January. Uh based on how the governor proposed it, school services estimated that around $500 per ADA. So, we're estimating about $6.4 million. No expenses currently assigned. Um there is word that that may change, will change. There's thoughts it may go up. Uh there's thoughts there may be a different allocation method. We'll find out more in May. We'll we'll be able to more accurately budget the expected revenue in in 2627. We did not include the learning recovery emergency block grant full restoration that the governor proposed in January. What he did is he proposed to take two years worth of allocation and pay it all in 2627.
We got the first year's allocation this year and he proposed to take 2627 and lump it into next year but we are not assuming that. We will find out more in May and when we have knowledge of how that's going to work, we of course will incorporate it into our budget. Expenditures again including all of our negotiated settlements in the outy years, stirs and pers rates. You see them there. Of course, we also include step and column for all employees. As part of our expenditure reduction plan into 2627, the board resolution uh directed expenditure reductions of at least 7.5 million of unrestricted ongoing expenditures. So we were able to capture about 7.95 million currently projected and you see the detail there based on the different groups that we're projecting currently into 2627 reducing salaries and benefits. Um, we also reduced budgeted expenditures in the 4,000s, unrestricted resources to tune about 850,000.
So, we're recognizing about 8.8 million in ongoing unrestricted resource expenditure reductions in 2627 in our second interim financial statements and multi-year projection. So, those two total together for the expenditure reduction plan. Um I would like to uh point out also that budget adjustments in the current year will continue to occur as we approach estimated actuals and budget development and any additional board action related to or subsequent to second interim may of course impact the district financial statements. Of course, if any unknown expenditures come up, those also impact. And if we um don't spend to levels of budget, either in unrestricted or restricted, those also will impact the budget as we move towards estimated actuals in our budget development for next year. So 2728 second subsequent year out. If you guys know what's going to happen in that year, let me know. I don't. But we project based on what we know today, which will change.
10.7 on the federal side restricted very consistent with 2627 and consistent with um federal revenue allocations. Again, this can be in question in 2728 when we get there based on the current administration's priorities. state revenue um unrestricted fairly consistent mandated cost cost block grant and our lottery and our restricted. We did take out the receipt of the discretionary block grant in 2627 because that is onetime revenue. So that is not revenue we can recognize in 2728 expenditures similar assumptions all ongoing costs step and column stirs and pers rates the multi-year financial projections this is the unrestricted general fund you'll see in the current year we're still projecting about an $8 million deficit so our unrestricted unrestricted ending fund balance is currently projected to be 11.1 when we get to estimated actuals that number will be different and when we get to un audited actuals. That number will be different based on actual expenditures that occur because this is budget.
And you'll see it's out into 2627 and 2728. Even with our expenditure reduction plan in place and all of our settlements in place with all of our units through 2526 and some and all ongoing and some additional agreements in 2627, um we're still projecting deficit spending a little over $2 million at this point. That will absolutely change based on the May revision, the state adopted budget, different revenues that may flow, higher or lower COLA in the LCFF. Lots of variables will affect that. And out in 2728, we're projecting what I would call a balanced budget on the unrestricted side of the general fund. And you see the ending fund balances down there on the bottom. This is the restricted side. That ending fund balance in the current year, 967,000. That's that learning recovery emergency block grant that I mentioned. The revenue we received in this year, we're not assuming any additional revenue.