The excess in 2627 of $6.4 million, that's that discretionary block grant that we're assuming receipt that has no expenses attached to it right now. That makes up that restricted ending fund balance of 7.4 million. That learning recovery emergency block grant will need to be expensed by the end of this budget cycle. It's got a June 28 deadline. So, of course, per the plan that the DAC uh supports into our LCAP, we'll spend that along with any other LRUBG monies we get into 2627 based on the governor's proposal. And we're not aware of a deadline on the discretionary block grant as of yet, but I'm sure we'll have a lot more information when the governor brings his May revised to be spent and the spending timeline for those funds. This is merely combined. It combines the unrestricted and restricted side of the budget and components of the ending fund balance.
Keep in mind our reserve is based on our unrestricted ending fund balance, not our combined. So our unrestricted ending fund balance, you'll see there we have it listed as economic uncertainties to the tune of 8.377 million. That is our 3% required reserve. Restricted reserve is about 967. We have prepaid expenditures. Again, to remind the the audience and the board, those are expenditures that are were ordered in well ordered or sought in the current year that aren't going to be paid until the next year. So, we reserve that in the ending fund balance because we know it's going to be spent. So, we have a little over 3% unrestricted ending fund balance. It pretty much is that 8.4 4 plus that 890,000 right underneath is uh well actually not all that 890,000 I'm sorry the detail some of that is some uh u dental reserve from the trust the the final the final payment um moving to 2627 we do make our 3% at the 7.6 6 million there and in 2728 we make our 3% but we do not make our 5% board policy in any year based on our unrestricted reserve.
So of course highlights and concerns for the future ADA very important um local programmatic decisions with still projecting deficit spending next year um with the expenditure reduction plan in place the May revise what's going to change will cola go up will it go down what what will be some additional categorical program requirements and we're waiting for the adopted budget um the governor's Prop 98 manipulations he's proposing to underappropriate in the current year just like he did last here what will come of the discretionary block grant and of course what will become of what is known as the LREBG. Thank you. >> Thank you. Um can we take a vote on this or Okay. If there's going to be discussion, then we may need to continue the meeting. Yeah, it is 11 o'clock. So, what would you recommend? Well, it's 11 o'clock and we only extended to 11 and my understanding is we can only do it once.
>> Yep. >> I think it's in the policy. >> Okay. Yeah. >> There's rules about the second interim and >> Yeah. >> what that does to the county shuts down financials. You do you have to right you have it open. >> Um what happens if we just go over or just are you okay with going over because you're the one that wants to end like I mean no I I agree we need to start reigning meetings in they're getting very very long. Um, okay. But go ahead and put your comments and then >> I'm sorry. I'm like my my my brain goes but we're not extending the meeting. >> We can't extend it. >> So, our option is we reschedule the meeting >> or we just keep going. >> Well, I think we're going to try to get through this one, but I'm not sure we can go much further.
But we do have this open. There is a motion and a second on the table. Oh, okay. So, we have time to discuss the second interim because I think it's important we have like information on it. So, we're okay with that as a board without extending the meeting. Um, how many pages do you have for this one? >> No, three. three. >> So, >> we can't. >> So, what it what it says in the board bylaw under meeting procedures, board bylaw 9323, um is the board believes that late night meetings deter public participation can affect the board's decision-making ability and be a burden to staff. Regular board meetings shall be adjourned at 10:30 p.m. unless extended to a specific time determined by a majority of the board. The meeting shall be extended no more than once and subsequently may be adjourned to a later date.
Um, >> amend your original extension. would have to I think your safest bet would be to amend your original >> extension which was a 40 >> to amend that action the previous action of the 11:00 >> right um I think multiple people have brought forward that we need to make sure that we are following our board policies. So, I'm hesitant to go against them. >> So, you can adjurnn and move it to a later date. >> Okay. Matt, what does what does this do um since they haven't taken action on it to for the county? Um the second interim report um is due to the county by March 15th. Okay. Okay. Um it was my motion. So can I pull that? >> The one on the current item I >> open. Yeah. Would that be >> um you guys can make a motion and a second to uh table item I9 and the rest of the agenda as is and once decided on a date move I from item I9 and the rest of the agenda as is to be posted within that agenda.
It would all move together. >> Okay. So, I'll make the motion of what Kylie just said. >> I'm gonna mess it up if I try to repeat it. She She nailed it. It would pretty much be you would be making a motion >> table this one plus >> table I9 all the way through um item I believe it's let me just I don't want to misspeak um it would be item M4 would be the adjournment um and then you guys would then discuss a possible date so I we would know for posting and we would move everything over to that date >> all right So, can I get a second then on tableabling? >> All right, I will take a vote via roll call and this is to table um Mrs. Longshore. >> Mrs. Longore. So, it's to table this and everything following. Correct. >> Correct.
Uh but we don't have it to a a date. We'll decide that at a later date. >> That would be the next thing that we do after we move out of this item. >> Okay. I >> Mrs. Tucker. >> No, >> Miss Apara. >> Hi. >> Okay. And Mrs. Buchanan. I >> Okay. So, we need to make sure we have this done. in time to file with the county. Um, we can look at >> Saturday morning. That way we can have it done quickly and there's time to file. >> Saturday morning can work. We do have to discuss a location for the board meeting. Um Mr. Schloer, we've got um the Lions Club here for a health fair in a can we adjust and use a >> Saturday morning. I have a class so >> you're talking about this Saturday, >> two days from now.
Is that >> it's a it would be a continuence of this board meeting. We can post >> make the timelines. The Lions Club has asked for NPR A and B. Okay. >> Okay. So, not Saturday. >> Trying to think of another on a Saturday. If we had to, we could Well, it's hard to stream from another location. >> What time does your class end? Like, what time are you done? >> 9 to 5. >> Okay. You didn't go full time. >> Um, we could do it. >> If we do Saturday evening, I can get out of class and down the hill. Oh, you have to go down. I bet you're virtual. >> Okay. What time would work for you? >> Um, about 3 3:30. >> Do we know what time the Lions Club is done? >> Problem is the set, >> right? Yeah, that's true.
>> Okay. >> Yeah, I think it looks like they have the >> they've asked for the space until 4. Can we go back there and do it? >> They have also >> they have all of it. >> How much is this gonna cost in having staff to do this on a Saturday? >> Um, >> is there going to be a cost approximation for you guys? >> I'm just saying I I know I know I'm I'm not really an active part, but I know I'm not here Saturday. him and I can't get out of um >> Well, how about Jason here? >> Is there any way we can reconsider and just power through? >> We can't per our board policies. >> Miss Nelson, uh I am unavailable on Saturday. >> I That's Saturday. >> Yeah. Okay. Will the association allow us to do a Tuesday? >> What about Monday?
You guys can amend your end of meeting? You can amend prior board action. So, you took action on the extension and I get that you want to follow policy. Um, but that is a possibility since we're running into >> I just know that I don't want to be at a board meeting till >> right. It's 1110 and >> that's ridiculous. Teachers are here. They need to go back. I understand that people want to end on time, but I think since we're here, we should power through to the end. And I understand that. The problem is is that we have gotten into a place where there is discussion and speeches that go so long that our meetings are becoming seven hours long. And it's diff like I know we are all capable of like asking our questions earlier in the week so that we've got those answers and then if we need to ask publicly so the public is aware the answers are are available readily and and we can move through it.
Um, I will say I am not as fresh at 11:10 p.m. as I am at 6:00 p.m. or 700 p.m. And because we have been going so late, the decisions that we make at the end are are usually the important ones. Um, my concern is let's say we get through this one, we still have the entire consent agenda. Is there anything that's on the consent agenda that is needing to be approved on a timeline? Because if we >> President Buchanan, if I can address this concern that you brought up that we're having late meetings, um we might consider making two board meetings a month. Just an idea. Um that would assure that we would get out of our meetings in a more timely fa fashion by being able to break up the content that we are going over at each board meeting. And it would also allow us as a board to be able to revisit things um timely.
Uh just an idea. Um I think with uh the idea of powering through tonight, it sure just seems like the uh more fluid idea at this time since scheduling this late will seem to run into a lot of hiccups. I understand the concern that we might not be as fresh, but I personally, and I'll speak for myself, I feel like I feel like I could power through. >> As far as the consent, >> the only item that I see is there is an item with an effective date as of if it's passed, the effective date on it is uh March 5th. Um it's item I or J5. Um so can we get through the second interim financial report and then item five or do you want to try to do >> I just as far as I've gotten so far that's Item uh J5 approve the standard agreement exhibit A, exhibit B, exhibit C, exhibit D between the Apple Valley Unified School District and Department of General Services Office of Administrative Hearings.
>> So, I I'll continue looking, but that one just caught my eye. >> Um I think the consent agenda goes rather quickly if I'm remembering correctly. That's not much discussion and we only have two items before that. I would prefer to just power through. >> Okay. So, I'll make the motion to approve the second interim financial reports reflecting a positive certification for the period ending January 31st, 2026 and approve the expenditure reduction plan for 202526 and 2026 27. >> Isn't a motion already on the floor? >> We closed it out already, so I'm reopening it. Second. Okay, Mrs. Long, the floor is yours. >> So, just for clarification, we're open opening the second interimm report, but nothing else or everything. >> Okay. Um, so I do have some questions. I just uh need to know the um the payments to county offices projected payments to county office 7142 looks like it's approximately $3 million.
Um what is this for? >> I can research that. >> Thank you. I would appreciate that. Um, would you be able to get back to me at next board meeting if not sooner? >> I believe we could. >> Thank you. Um, um, another question. Why are the special reserve funds approximately $10 million less than was reported on the 2425 unodudited actuals? Have you spent these funds? >> Which special reserve funds are you referring to? Um that would be the uh special reserve fund for cafeteria, deferred maintenance, capital facilities, capital outlay projects, and bond interest and redemption fund reserves. >> Yeah, I would imagine there were expenditures that occurred between last year's unudited actuals and second interim this year. >> So are you saying, Mr. Schulenberg, that we spent $10 million out of those funds total? Well, Miss Longore, I didn't receive any of these questions ahead of time, so it's very hard for me to answer in detail when you don't provide these questions.
You've had this since Friday. >> So, >> I'm going to ask that as we've continued to have these conversations that >> our board bylaw, our um handbook indicates that it is recommended that the board follow the policy and provide the questions ahead of time. So staff is not put on the spot while they're sitting at the dis which is what's causing us to extend the timeline. We are more than happy to answer the questions. I would just like to clarify that me asking questions does not extend the timeline. It is our meeting and it's important that I be provided with clarity. I have asked questions via email and I do not get um responses that I need. Um which is why I have had to bring it to public um session. If you'd let me know which questions you haven't gotten responses to, I'd appreciate that.
>> Okay. Thank you. Um so yes, we've spent uh but you don't know exactly um how much. Um thank you. Um it is um my understanding that we have not authorized any increase in spending for services and other operating operating expenditures so far. Um is this true? >> Again I don't know the detail and without having these questions ahead of time it's difficult to answer. >> Okay. Um I think you know as we've gone on I have asked specifically are these pre-existing costs and and so that's that's what I was trying to clarify. Thank you for that. Um I wanted to touch on AE um our charter school um that we grant the charter um in their second interim report 2425 they noted due to large contributions made by the foundation in the AAE um to AE in previous years. It is also pertinent for ABSD to review the foundation's financial records to verify the overall financial condition of AAE.
Um, quote unquote, AE's budget no longer appears to be continuing with the assumption that additional contributions from the foundation will be forthcoming for future expenditures and the foundation has historically funded any shortfall of revenues. Um regarding this report um a second interim report 2425 I asked for clarification regarding this concern um specifically would ABUSD be financially responsible and was told I'm paraphrasing at this point no they are completely independent funds just passed through when Fikmat presented their findings I also asked them and they replied again paraphrasing AVUSD would be fully responsible for any financial shortcoming ings. You can see why it might concern me given the current financial state of our district and have been keep I have been keeping a close eye on this as well as any uh payments to the county. Um so as I was looking at payments to district and charter schools um object 7141 and transfer of pass through revenues to districts or other charter schools object code 7211.
I noticed in 2223 it was roughly $4 million in the for total cost for those two object codes 2324 roughly $4.7 million an increase due to pass through funds. Uh 2425 roughly 5.6 6 million uh a previous average of roughly 1 to 3,000 um for payments to district and charter schools. Um and it's now h increased to 1.5 million. Um so I was just curious and you know feel free to get back to me on this. What is this increase in cost uh to the district uh specifically noted in uh 74 7141 uh payments to districts or charter schools. So it was previously 1 to 3,000. It is now 1.5 million. Um in our 2526 second interim report in some 7141 it tripled. So the budget was 231,000 that we were looking at this year and now second interim it's up to roughly 742,000. And um of course, as already noted, payments to county offices continues to be projected at $3 million.
Um thank you, Mr. Schulenberg, for being willing to look into this and get back to me. Um noting the increase and the cause for it. Um based on our district's history of spending over time, the already noted allocation of funds and certificating classified salaries and benefits sufficient to cover the raise that was offered. I believe the projected numbers in the second interim report at this time to be inaccurate. Thank you. Okay. I am going to have to take another recess I guess before we can vote. We also still need to amend that previous action >> just so it's on the record. >> We did >> you guys um you did reopen but I don't think you guys actually took a vote to amend the previous board action for the original extending. >> So I just want to make sure you guys get a chance to do that too.