001e e in The Zo what Okay so so so on on our board on our box slite it says C SC you now okay for are you e for e e e EXC AG do for go landed here all right can folks hear me that's fine um all right looks like we're all aboard um good evening I would like to call this February 4th 2025 budget Workshop to order with all board members present save one student trustee I believe that student truste prove is not as th um it's a solid gavl strike there um we will now move to adoption of our Workshop agenda is published is there a motion motion from from Hazen second from uh trusty baldis um I think we'll just take a well we'll do a roll call the student should
002we do all the trustees together here it's just a workshop yeah okay um we will do a roll call Barrera bazo haen Pon I wers pay Bist Cruz not present unanimous all all board members present uh we now have an agenda uh we will now move to section c public testimony please note that if you did not sign up for public comment prior to the meeting in wish to provide testimony an iPad is available at the back of the room over there in the corner uh to sign up we will hear additional comments at the end of the meeting if you'd like to speak at the end uh Miss stultz have we received any requests for public comment no requests for public comment again we will do this again at the end of the meeting
003if um if you're uh your appetite is wedded by this conversation uh with that we will move to section D 20125 budget Workshop uh this um this Workshop is a followup to the budget Workshop held in October uh for our first interim report in December and um I will now turn things over to interim superintendent bagula thank you president pson and thank you all board trustees and all guests I appreciate your time and your pres um your presence here because this is a large problem that requires all of us to take a look at this so we are making progress towards eliminating our District's projected budget deficit and are well on our way to delivering a balanced budget in June but there's more work to do between now and then and that's why we're here
004tonight together um with you tonight we're going to review the actions our district has taken so far review the governor's budget identify what more we should be advocating for from the state as they prepare for their May revise and explore with you other actions we should be taking to create a balanced budget with us our school services along with our legislative team that works in Sacramento thank you for being here and our senior Executive Director of Finance Ong with the host of others who are working to drive down our projected deficit I want you to know though that tonight is not just about hearing from the team um or central office talk we discussed the need to restructure these meetings last time we were together in order to Foster dialogue and listen to one another
005at two different points in this presentation so please now we'll have time to actually talk to each other at two different points this is a workshop not a lecture and we also adjusted our times and our save the date went out weeks before these were the three changes that we discussed the last time we were here and we have fulfilled them after the presentations there will be opportunities for us to dialogue and listen to one another and I purposely didn't set tables out because I felt we can stand up after sitting here for a few hours we would probably welcome that I can assure you that the information and feedback you provide will influence the outcomes of this budget process because it already has but I also wanted to kind of capture some of the
006learning that I had last week last week thank you for allowing me to go um to Yale for uh student strategic budgeting workshop and there was five pivotal points that they referenced and said this is best practice and they said School District's best practice are if you understand and consider how costs behave in every organization I I do believe that our team has been thoroughly neck deep in that analysis if we recognize strategic optimal tradeoffs depending on and understanding available revenue and planned expenditures that's another practice that we also engage in that we ensure high quality budget depend on well-designed forecasting processes that work should be done effectively with an interde Department team which we do have set up and healthy communication which we're constantly working on and we also engage with external stakeholders and
007partner with students families and the community again practices that we have begun as well so when I saw that slide um at in in the middle of the lecture I took a picture of it because I thought we're actually doing some of this work all of this work in different you know we can discuss quality and always find practices can be strengthened but I was really proud to see that the practices that we were being engaged in in service of the district in service and with the Integrity of being a taxpayer Steward is there um on the screen at Yale saying these are the best practices and San Diego unified is doing them so in closing I want you to know that at San Diego unified we hold ourselves to high expectations we're here to
008deliver the best educational experience possible we have an obligation to keep our students Central to every decision we make be accountable to you and provide information about the district's progress and challenges in an open way this is my commitment as your superintendent and that's why we hold workshops like this I look forward to working on this budget with you tonight and I say thank you for joining us I want to introduce Drew rolands Deputy superintendent of operations and Amy Shackleford senior Executive Director of Finance thank you for leading us tonight good evening thank youate um I think slide wise our clicker isn't clicking so it's you're going to hear next as we as we progress through the evening um so with that Eddie next and another next um so as the superintendent message uh um
009superintendent just stated we're continuing our budget conversation we're hearing from our partners at school Services of California Dr cook with government relations and our new senior Executive Director of Finance Amy Shackleford as we discuss where we are in the budgeting process providing an update and really since we've um presented our first inim report in early December I thought it was important as we get started though to just remind ourselves ground ourselves a little bit a good practice um with what our goals and guard rails are as much as the numbers the dollars the ups and downs the the fun Financial puzzle we can all get absorbed in our foundation are the goals and the guard rails a reminder of our overall mission and and what we're working towards every day um goals on that one
010next please Eddie you'll see guard rails one more next we're not next thing so the next slide would be gu uh would be the guard rails you've seen them before so thankfully we don't need to to dwell on those but again just reminding us of what our work is all about um this evening we're going to work through those very same things that we've U maintained in our theme of transparency of looking at the many nuances and adjustments and what is our next step and our outcome in where we're we're uh going to so current state where are we headed where are we headed and particularly what's next being for us as a school district the budget review team and all that is our second inter room report which we brought forward to the board
011on um there we go one more on March 11th and as the superintendent uh mentioned during the course of the meeting we Str strategically have a few opportun unities to pause to get up from the table you'll see stations 1 2 3 and four um where we'd like folks to mix spend a few minutes just discussing where we are in the presentation and just bringing bringing forward the thoughts um that everyone has as we're as we're continuing this work together one more please as it was mentioned we met here in this Auditorium um for our first work workshop 15 weeks ago 107 days to be exact U at that time we had projected a budget gap of $176 million for next year and 230 million for uh 2020 2026 27 school year and then since
012that time our budget review team many of the folks are here around us this evening uh We've continued that work and then we brought forward the board on December 10th our first interim report we showed that the budget Gap had been reduced and this is one of the slides from that presentation where we showed our general fund unrestricted shortfall was now at those places you see there 112 million for 2526 and $210 million for 2627 and always that footnote with 2627 of knowing that what we do in 2526 will affect that shortfall in 2627 the extent that we make um changes that are recurring that number in 267 will drop dtic dramatically next please so I think a a broad part of the context here is what's changed since December 10th when we presented the
013first interum and so we tried to capture it here and really this is a lot of conversation and and where we'll what we'll discuss this evening the governor had his proposed budget on January 10th we'll hear from school Services uh for the broader context of that we'll hear from uh our own staff on what that uh translates to for us as best we can tell and then we'll also hear from Dr Cook on how we continue to watch that process how we as a district Advocate through the budgeting process at the state level um we had our Ser window close our our supplemental early retirement program so we advertised that that closed on January 15th you'll see more information but we had a very strong response there and then we started in on our site
014based budgeting work we at the central office we started a first round of um Department level budgeting and basically some of what you're here this evening based on the success of the Ser we know we need to go back back into that department level budgeting that's what's intended by that next bullet of second look at our Sur data uh that we're working through right now um and into the end of this week and next week and then um we have that just a a marker on that last one where we originally intended to start school budgeting uh right now we expected to be basically done with it by this point but as we considered all that's moved all that's going on the Sur participation and where we are headed as a district we thought the
015best move for us was to delay School site budgeting as we continue to work through this so just a reminder there of of where we are uh and now with that I'd like to turn the presentation over to again our partners from school Services California Mr John Gray and miss Patty Herrera to provide their insights into the first item I mentioned on the slide the governor's proposed budget next one is next oh sorry good evening everyone uh it's our pleasure to be here so we're going to give a broad overview of what the governor's budget that was just released um from from some of your education Partners who may not be that deep in how budget development goes in California school districts San Diego unified like the other thousand districts in the state are heavily
016reliant on the state of California for its Revenue sources so what happens in the National economy the state economy even local economy all of that matters and so that's something that we watch very closely next and I just uh pick one slide I could have picked 20 slides but uh give you just the overall uh tenor of the budget as far as the economics go leading in to the governor's forecast so it's almost uh looking in the rearview mirror it's real easy to see how things happen and actually things were looking pretty good Unemployment uh GDP all all the signs were positive it wasn't very robust but it was a fairly stable economy well GS murky is going forward um we have a new Administration in Washington with different views on immigration uh fiscal policy
017uh trade all of those types of things and it depending on what Economist you read you can come to certain conclusions but uh it's an unknown it's a work in process so we need to keep our eye on that between now and the mayor revise when the governor comes out and revises his budget uh that's what we're going to be paying attention to what are those economic indicators out there that could have an impact uh on the California state budget and so uh this is GDP the broadest uh measure of economic activity um you know we had a recess or a dip back in 2022 it's it's recovered um but going forward uh there's a lot of unknowns uh we've all read about the fires in Los Angeles County typically most economists will tell you
018natural disasters really don't have that big of an impact because of the the huge breadth of the US economy it's so diverse it's so big but we've never had a county like LA County have a disaster it's the number one GDP it's the as far as uh uh counties go in the nation right and so if it was a country it would be bigger in Argentina Poland so we've never really had a disaster targeted uh to such uh robust economic engine like LA County there's Fortune 500 companies um a lot going on in that county so it's still a little too early to see what happens but those that's one of the things we will be paying attention to as this budget rolls out specifically through the May revise next one of the things um
019uh I you're likely going to talk about tonight and is a a big topic when we discuss the budget is how much is the cost of living adjustment right how much more are we going to get per student than we got for the prior year to deal with the increased costs of doing business so just a quick second on that the the Shaded part is the California uh excuse me the the National Consumer Price Index which measures you know our cost of living as Citizens you know how much does it keep for how much more do we need to maintain our standard of living um and I put in the California CPA all uh CPI also but that dotted line um that is the implicit price deflator which determines your cost of living adjustment so
020the point of this chart is over time the cost of living adjustments that school districts get and measured against CPI over time 30 35 years over time it's about uh it ends up being about the same but the timing isn't always there so we're going to be talking about uh a low cost a living adjustment that isn't necessarily keeping up uh with the cost of doing business especially as a state or local government so next slide um so we're talking about a federal number it's not a state number it's a federal number it measures the cost of a state local government local government meaning school districts the cost of maintaining what you did the prior year it's the cost of doing business but because it's a federal number it doesn't take into account that we've
021been having to contribute more to our pension plans for stirs and purs uh it doesn't take into account uh the volatility that we have in California uh um Kansas is in there North Dakota's in there so so it's it's a natural uh National number but the governor came out with a uh expected Cola of 2.43 and by the way that's about a half a percent less than you had um in your budget uh in your first interim so it's positive that he's planning on funding the cost of living adjustment but just know it's about half a percent lower uh than what you've been dealing with leading up to the governor's budget um it's a calculation it's not a political number and it's got eight data points we've got seven of those data points so it's
022not going to fluctuate very much going forward but if I mean we we do our own estimates at school services and based on that last seventh data point which the governor did not have when he came out with 2.43 uh we think it's would be optimistic to be 2.43 we think it's probably going to be something less um that will be a guess guarantee it won't be 2.43 it'll be something different if we were to estimate we think it might be closer to 2.2 something like that but this is something that will be finalized in your May revision when the governor comes out with the May revision so it will be a new number just know that for now you're dealing with an estimate and our best guess uh it might be a little optimistic
023it's not going to be a giant change but if it changes my guess is it'll be a little bit lower so pad you want to talk about some of the specifics in the budget yeah so good evening thank you for allowing us to be here with you all um so I'll take you through the major proposals that were included in the governor's education budget uh for 25 uh 2526 excuse me so if you can advance to the next slide that'd be great okay so um when the governor releases his budget every year um he has to look at the proposition 98 minimum guarantee across three F fiscal years we look back in our rearview mirror and we ask ourselves you know what was the prior year obligation uh to k14 education that the state must
024meet uh in that year what's you know are we on course in terms of our projections for the state's proposition 98 minimum guarantee obligation for the current year that we're in so that would be 2425 and then of course the governor is projecting what total education funding will be for the upcoming fcal year which we call the budget year in 2526 you'll see on this slide that I don't show any adjustments to the prior year which is 23 24 and the reason why is because you might recall that last summer when the legislature and the governor adopted the budget they decided to suspend the proposition 98 guarantee and not fund the obligated level um that the constitution would would have required them to do they they're constitutionally allowed to do that um but if they
025were to go back back in adjust funding for 23 24 they would have to take that to the legislature and back to vote because they they voted to suspend the guarantee but what this slide shows you are a few things that I want to point out to you one is from that light blue bar in the 2425 or current year to the dark BL the first dark blue bar that shows how much education funding is expected to grow because of the economic conditions that John just talked about right so last summer they anticipated that their funding obligations to K12 TK through2 and the community college system was a little over 115 billion dollar we uh fast forward six months later and the governor is like oh the economy is doing much better the general fund
026condition is much better we actually anticipate that we actually owe you $19.2 million billion excuse me not million uh billion dollars in the current year so they have to true that up they have to you know give us that money the Constitution requires them to do that and then looking to 2526 the governor estimates based on his state revenue estimates that the guarantee um is going to be relatively flat at $18.9 billion so there's two things I want to point out to you about that is when you're looking at current year to budget year education funding is flat in fact I mean if you really did the math it's $300 million less next year than it is current year so we're really working through like a maintenance budget nevertheless the growth from June to January
027is still something we can celebrate it creates um uh a little bit of a surplus in proposition 98 and it's with this Surplus that the governor is making the propo the next proposed Investments but before we advance from that slide I want to draw your attention to that um dashed uh line or bar um in under the governor's budget for 2425 the governor is proposing something that's really novel we've never seen it before in a Governor's budget or even an enacted budget for that matter which is while the governor's Revenue estimates would um calculate the minimum guarantee at $19.2 billion the governor's proposing to only appropriate 117.5 billion of that 119 19.2 and his reasoning is because he's saying you know revenues are really volatile there's a lot going on right now things could change
028we don't want the state to accidentally or inadvertently over appropriate the minimum guarantee whereby we would not be able to recoup that those funds from you know for other uh government priorities if we were to appropriate it to education this is never been done before and um he's using he's leveraging um uh these esoteric statutes in the California Education Code that requires the state of California every year to officially certify the prior year minimum guarantee and is saying when we get to that certification point which won't be until next may not this coming may but next May and if we I if I should owe you that if the state should owe you that 1.6 we'll pay it then this is causing a lot of consternation um in in Sacramento and among uh education interest
029holders because a lot of people are feeling like if there's $1.6 billion that's owed to education we should spend it on the children now right so there's some concern um about that and I think this is this is going to be a debate that will ensue in Sacramento and your uh uh director of governmental relations Dr Cook will be monitoring this very very closely I'm sure so uh with the next slide I want to show just this is is a general overview of how the governor is proposing to spend the $7 billion we have in the Surplus you know 7 billion do across the two fiscal years 2425 and 2526 mostly you can see that the his the biggest Investments are in our core instructional programs through the local control funding formula and then on
030the Community College side they're equivalent to our version of local control funding formula spending almost $3 billion and honestly that's just to fund the 2.43% cola that he estimates and as John just noted that that cost could come down if Cola is not uh 2.43% in May the next B biggest investment that the governor is making is in um a onetime discretionary block grant we just got the details of that discretionary block grant that I'm sure Dr Cook will um take you through in just a minute um and that that's significant and again this is a one time time block grant it's discretionary as we know it um one of the things that we like to say at school Services is you don't use one-time money for ongoing purposes right because you'll have to backfill
031for the you know for the retirement of those those onetime monies in addition to that he's he's um the governor is using um some of the Surplus to support uh the teacher profession Staffing profession um as well as direct student supports that $1 billion dollar that you see over there in the red box most of that is really dedicated to an investment in the expanded learning opportunity program that I'm going to take you through in just a minute okay if we advance the next slide so this is sort of the you know the big Investments right lcff $2.5 billion the $300 million difference from that prior slide is for the C student centered funding formula in community colleges for the expanded learning opportunity program the governor is proposing an ADD additional $435 million uh to
032be put into that program that so that now that investment will total if the governor's proposal goes through $ 4.43 five billion for expanding learning opportunity program and there are requirements that come along with that that I'll take you through in just a minute the governor is also making the first p uh installment on a deferral to the learning recovery emergency block grant to deal with a deficit a couple of years ago the state of California reduced the total appropriation for the learning recovery emergency block rant by $1.1 billion and said we're just going to delay it we will pay this back over time in three installments this represents the first of those three installments and then um the governor is um proposing to invest $1.8 billion in Universal transitional kindergarten because as you I'm
033sure well know in the 2526 uh school year the state will finally achieve and reach universal access to transitional kindergarten whereby the state will serve all four-year-olds in transitional kindergarten next school year and he's making some significant investments in that so the next slide is really about the details um of where that money for TK um is going and this slide represents for you um what the governor is really propos the biggest investment in transitional kindergarten that the governor is making is to fund a policy shift that is already in law which is that this the law requires all transitional kindergarten uh classrooms to have classroom ratios of no more than 10 children for every one adult in the classroom currently the classroom ratios are at 12 to1 and so you can imagine at school
034districts across the state of California are going to have to hire additional staff in order to meet these lower ratios so that comes with cost and there's been a lot of advocacy around making sure that the state funds um that lower ratio requirement your own very your very own Dr Cook has been very active in that space to make sure that the state of California is making good on that investment and the governor's budget includes a $746 million investment um to fund those lower ratios that amounts to $644 per TK student to acquire those uh additional staff which is a sizable increase in the current investment which is a really around it's over it's about double the amount that the state of California is currently investing in the TK ratios so next slide okay so
035in the governor's budget we just have to remind you that there are requirements that are sunrising with universal transitional kindergarten in the 2526 school year we want to remind you that all TK teachers who are subject to this requirement have to have additional certifications in order to be appropriately assigned to a TK classroom there are class siiz limitations that are in law and so no TK classroom classroom um averaged at a site can exceed 24 students um in that classroom and then as I just mentioned every classroom can exceed classroom ratios cannot exceed uh 10 to one the reason why I highlight this for you is because if an Lea or School District um falls out of compliance with any one or combination of these three requirements there are stiff fiscal penalties to be had
036if found to be out of compliance at the annual audit so next slide so this is the governor's investment in the expanded learning opportunity program as I mentioned to you the governor is uh investing an additional $435 million in this program and what he's doing with that is is's moving the threshold of what qualifies a school district for what we call rate one it's a higher stable rate of funding per pupil uh in the expanded learning opportunity program currently that um who districts that qualify for Rate One have to have an unduplicated pupil percentage of at least 75% San Diego wouldn't have been in that um category however under the governor's proposal he's proposing to reduce that threshold for rate one eligibility down to school districts with at least 55% unduplicated pupil percentage of course
037which would San Diego would qualify for what that does is it it like I said it it provides a higher rate per pupil than currently rate two districts get and there's a guaranteed that's a guaranteed rate for three years so it's more stable also than the rate two districts however it comes with higher requirements and that is that all rate one districts have to offer and provide provide access to expanded learning opportunity programs to all students so at those districts in those districts the expanded learning opportunity program is universal under the governor's proposal again these are all proposals so that he's going to have to negotiate with the legislator and we're going to have to see what shakes out in um in the final budget in June but that this is a pretty significant proposal
038and I know that this is a priority for San Diego next slide okay and then I don't I won't spend too much time on this because I think this is going to be discussed um by um both um Miss Shackleford and Dr Cook again the largest investment in in the governor's budget that frankly offers some great flexibility is the $1.8 billion um in discretionary block grant that the governor is appropriating on an equal per student basis um so I'm sure um Miss Jackal for will take you through um what that means for the district but that's pretty sizable the I guess the one thing that I would offer on this is you know my first slide I showed you that the governor is proposing to hold back $1.6 billion um um to avoid an inadvertent
039over appropriation of the minimum guarantee that is uh um that that is attributable to the 2425 um fiscal year it's like one it's a you know onetime Revenue uh boost if we were to argue that the governor should really stle those um dollarss out one of the things he could do of course is not put out a $1.8 billion discretionary block grant he could put out a $3.4 billion discretionary block grant so I think this is going to be I I say that because I think this is going to be an issue of great contention as we move forward toward the May revision and the final budget and then finally I think this is the final one the next slide please okay um one of the issues that we know um many districts across California
040and especially we heard yesterday that um districts across California um there were communities that were participating in a day without immigr immigrants um rallies um and and uh we know of a district in Northern California who many of their students didn't attend school because there were rumors of ice raids occurring in the community so we we understand that this has Deep Impact um not just on a district s you know fiscal um uh condition because to the extent that students don't attend school um that obviously uh affects your um your fiscal picture but it also has deep impacts on their learning right and disrupt disrupts their learning so one of the things that we've been looking at at school Services is ways that school district under current law without any change to current law um
041ways that school districts can support students if they find themselves too fear to come to school um and or if they and their parents are deported um from the from the country and have to leave the state um and so there are two ways that we think that you that districts can continue to support those students as well as continue to earn attendance for funding um purposes and it's primarily rooted in the ability to offer independent study and I know that your very own um uh M tot here is quite uh verse in Independence study we got a law passed for her actually in honor of her name um not too long ago a few a couple of years ago um and so we wanted to provide this as a resource we have written articles
042on this so if you'd like um um some additional detail on that happy to take you through that I also want to say that there's a lot of questions about what California can do California as a state um can do um to protect continue to protect their students um from um enforcement agents on campus and the national immigration law Center put out um some a fact sheet uh not shortly um after uh president Trump repealed the St the sensitive areas policy um so I highlighted that that um their fact sheet the summarized their fact sheet for you and we can make those available to you as well and with that I think that is the end of our presentation we'll be happy to take any questions or when it's appropriate so we were going to
043dig in with more granularity but would you like to pause and and have conversation with school Services before we do that or should we continue on yeah why don't we take some trusty questions and then we'll continue with the presentation um trustees do you have any comments or questions justy Baza yeah thank you um this is great information and very timely um I just wanted to ask when we're talking about the immigration issues um other things going on the federal level are we also looking at I know we're working with our other large Urban school districts but also you know we have so many suburban school districts rural school districts that are all in that same boat um as we're working on advocacy are we teaming up with all of our different you know Partners
044who might not look like that like us but are going to be impacted in you know similarly so I was just curious about that there we go um short answer yes um you know a lot of of of the executive orders and policies that are coming out are quickly evolving but there's a lot of um broader networks that are plugged into this like our other Federal advocacy when it comes to what's changing at the federal level sometimes those Partnerships that are districts that don't look like our district are in fact more valuable because they can provide a different and bipartisan perspective so yeah we're working on developing those thank you and one other question around that or um I was actually listening to KPBS the other day and they had a story about um how
045with Medicare or I'm sorry Medicaid being impacted that some of the funding for Medicaid also is reimbursement for special education programs um and so are we taking are we looking at that at all if that's going to be impacted if Medicaid is impacted is that going to impact our special education programs I don't know if it's too early to ask that question but yes um actually the Medicaid is a is a big budget topic not just for education but in Sacramento if federal policy on state reimbursement for Medicaid should change and the federal government reduces um funding for States for their participation in the program California is a big benefactor of the current federal program that's going to create significant budget pressures for just the state of California not even just for education but certainly
046to the extent that some um students uh special Leed students qualify for Medicaid we would certainly feel that pressure on the education side but frankly this is a bigger issue for the state um in the out years if that should happen it's going to exacerbate um already projected deficits in the multi-billions of dollars try Hazen thank you um I'm wondering so going back to the cola um I know that based on this now 2.4 3% proposed it would cost it would mean um Revenue loss of about $6 million and I'm hearing you saying don't count on 2.43 likely 2.2 or lower um so what is can you remind us I don't know if this I guess it's maybe more for our team but what what do we think realistically that's going to do to our
047budget and I know realistically based on our best guess we have a a slide coming that's going to talk to that roughly 1% Cola is about U I'm sorry .1 is about $600,000 okay so but you'll see Amy is going to walk us through that more specifically Closs got it and then the other question so I was meeting um with the state Senator's office today and they described the budget as fragile um because of what's happening at the federal level and so I'm wondering is there anything specifically um that concerns us right as we're trying to build out a budget based on the best information we have knowing that unpredictable things are happening all the time How likely is it um that things happening in Washington could significantly negatively impact San Diego unified's budget when
048I covered the economy um I think uh the best word I have is there's a lot of unknowns um like I said new Administration all the executive orders I think the best thing that I can um point to is the legislative analyst uh just came out with their analysis of the state budget and um they talked about it being fragile and deficits out in the oute but I think their conclusion was based on what we know today uh the revenue estimates at the state are are reasonable meaning they're in the ballpark so uh I don't think anyone knows the specific answer thank you thank you trusty um I just have two very brief questions and one is sort of in relation to that this 1.6 billion that's being held back is impossible to say but
049is that is is there a sense that that may be a negotiating Strate strategy to give flexibility on the final in the final stretch with the legislature or I'm not sure that I would that I would surmise that it's a negotiating strategy I think that it's a reaction to the very difficult budget negotiations last year when the state of California faced the fact that it had over they would say over we as in education we don't think you can over appropriate funding to education but um to use the term over appropriated uh the minimum guarantee by over $8 billion because they had passed a state budget assuming uh personal income tax and corporation tax revenues um would come in $26 billion higher than what they came in and um that made that put the governor
050in a really difficult position last year put the state in a really difficult position by not being able to recoup the8 8 billion and and the the very very difficult negotiations uh that was finally uh codified through the uh budget deal so I think learning that lesson from last year's budget negotiations around proposition 98 and I think it's important to understand the reason why the state is so sensitive to this and it's because proposition 98 consumes 40 cents of every state dollar so it's a significant share of the of the state budget so um so I I think it's more about caution than it is about negotiation however I do think that there are people who are going to be scrutinizing this policy uh for its legal um tenants is it legal to do um
051and I think that that's going to be uh the big piece going forward and then my final question um is around this uh for you there'll be more questions later but um is around the Delta that's opened up if this is typical between the federal um the federal statutory Cola and inflation and then on top of that cost of cost of housing for our employees so when when you I mean my my last math class I think was 11th grade laah high so um but but you know something like from 20 January 2020 through December 20 of last year 2024 there something like 22% of cumul infl cumulative inflation and I think when I added up the cola it's something like 16% and then we have 22% rent inflation on top of that over that
052period a time that is in real terms on top of inflation so H how do you council districts and boards to think about that Delta that just keeps widening and and the consequent decline in purchasing power of our of our of our salary of our salaries um we Council that um districts be very transparent and really map it out because the reality is uh the federal cost of living adjustment applied to California school districts is is not enough to maintain what you were doing the prior year on a per student basis and so um we recommend pretty much laying it out um because areas like San Diego have different cost pressures and housing pressures than TOA Kansas right and so um I think the cola the federal Cola works well in some states but overall
053um to be candid it it it doesn't in California and so it's been I think in place since the 1970s and so our argument has always been that when the state funds Cola it it's really it's really not um providing enough money to maintain what you did the prior year but it's a hard concept because uh people who don't deal with school F oh the cola you got you got an increase of 3% right well most districts and if you listen to fmat they'll say it costs about 5% to maintain what you're doing the prior year when you had step and column and health Ben all the things that go in there and so we just recommend that districts really lay it out and not talk about percentages cuz you don't get 2.43 you get
054dollars right and you're declining enrollment so year to year you're not getting a 2.43% increase on your lcff you might even get less than you got the prior year so but it's a it takes time to educate people uh on how that works because in simple terms oh cost of living adjustment well you're you must be good right it's a it's a tough concept but just laying it out and walking people through it that's about all I have on that thank thank you and with that we will move on to our staff there you go next slide next slide so now that you have heard the key points of the governor's proposed budget we're now going to break down the key items and how they can potentially impact our District's budget with the release of
055the education trailer bill this weekend there may be some updates that are not reflected on the presentation since it was published last week prior to the trailer bill so key impacts of the governor's proposal that we're going to review are the cola the full implementation of utk the learning learner recovery block grant and the one-time discretionary block grant there's also some other Investments that will not necessarily impact our general fund unrestricted budget but we'll cover those briefly next slide so the governor's budget assumed a cola of 2.43% with that Cola we were looking had a potential decrease of Revenue of about $6 million um as John mentioned we have seven of the eight factors and that we're now looking at a potential Cola in the range of 2.15% to 2 uh 24% I actually attended
056um a presentation this morning with Ken Kon from the Lao and he was also talking similar numbers they were looking at about a 2.2% cola again projected um we'll have the final in April and that will be reflected in the May rebis um so uh as we mentioned previously uh for every tenth of a percent that loss of Revenue is roughly $600,000 so if it were to be about 2.24% we're looking at a loss of $8 million and it could be as low as $9 million if that Cola drops down to the 2.15% um on a positive note we are just starting our second interim we did submit our P1 attendance report in January it is looking a little better than we anticipated obviously our P2 which isn't due until April uh typically declines um
057from R P1 but the good news is that we are looking better so um we're hoping that the improvement in our attendance is going to offset some of this loss of cola due to the cola or um loss of Revenue due to the cola so moving on to the next slide so as you mentioned earlier the governor's budget includes a proposal to fully fund the implementation of TK which makes it available for those four yearolds who turn four by September 1st um and it also funds the class size at a 10 to1 ratio the current TK add-on is $3,077 and if we were to add the additional proposed $3,252 that brings the total to the 6,44 to address the 10 to1 Staffing levels uh this year we are projecting about 36008 based on our P1
058reports uh next year we're forecasting to add about another 988 again we're adding one more month of Eligibility and so that would bring us to about 4588 so if we were to multiply that by the increase the $3,252 um we're looking at an increase of Revenue $14 million uh that's best case scenario I think currently we were talking um it was about $7 million um because we are currently providing the 10 to1 so that that would bring us additional funds obviously we won't know the full cost of that 10 to1 Staffing until the fall because students don't come and E packages of 10 so that $7 million was an estimate at a point in time so this is good news that we would be receiving funding to cover that 10 to1 Staffing so next slide
059so moving on to the learning recovery block rant so as we mentioned previously this proposal is the governor's commitment to repay the portion of the original learning recovery grant that was reduced back in the 2022 budget act the 1.1 billion would be repaid over 3 years so um next year it's proposed to be 379 million uh there wasn't a lot of specificity in the governor's proposal how that um apportionment would look at the laa level um so what we did to in order to calculate an estimate is we took our original $100 million that we received divided by the total state apportionments and uh based on that percentage it looks like we would receive about $5 million a year over that three-year repayment period uh the trailer bill um doesn't include or does include language
060that the leas that have received or will receive a portion funds pursuant to that section they still um need to develop A needs assessment because those funds technically are unspent and as a reminder starting in 2025 26 any unspent funds do require that student that uh needs assessment and so with these unsp these new funds that same requirement um would apply and so that would be something that we would need to do over the next three years of those new funds so next slide so the discretionary block Grint which we are now calling official official title the student support and professional development discretionary block grant um the governor is proposing a $1.8 billion for this block rint uh the intention of the funding is to address the rising cost and state and the fund the
061Statewide priorities that include professional development for English learning English language arts English language development framework literacy Road mmath mathematics framework um and also expanding career Pathways and dual enrollment efforts so at the time of publishing the presentation we didn't have specifics on how the funding would be distributed so now that we have the trailer bill um we have more detail and so it it appears to be about $323 per ada8 um and it would be based off of our 2425 P2 Ada which we won't have finalized until April so again using an estimated um Ada that's um roughly 88,200 um times the 323 that would be about $28 million again depending on what our final p28 da would be so um that that was good news um funding appropriate would be available for expenditures through
062June 30th 2029 so roughly four years um and then there's language in the trailer bill that states the department um Finance would initiate collection of course of any unexpended funds at that time I don't think districts will have any issues trying to spend those funds um and so moving on to the next slide other Investments uh so beginning with the expanded learning program or elop the governor is proposing to increase funding um and to reduce the eligibility criteria for tier one so um from greater than 75% and uh reducing that down to 55% eligibility uh so that would mean that San Diego unified would be funded at that tier one rate um currently the 2,750 per 88 um and that um also means that we would have to offer and provide access to all of
063our families not just to unduplicated students that is good um for our family that also means that um the district would have uh to uh uh increase the per um offering of those programs across all the sites I know currently we do have waiting lists I know one of the advocacy things that we are talking about is what would that ramp up period look like obviously if districts don't um receive the funds or approval until July how do you expand that program right away so that's something that a lot of districts are looking at from an advocacy perspective um if we were to look at what we received um at the previous rate which was the um 1,579 compared to what potentially could be the $2,750 that would actually be an increase of $35 million
064but again with increased revenues comes increased expenses because we would be having to expand our program uh there's also some miscellaneous apportionments um as far as literacy instruction considered one-time funds um the TK literacy program has been expanded to include mathematic Co mathematics coaches that's a $500 million we don't know um right now what schools would qualify for the 25 26 year but they do focus on high poverty schools for that for that Grant um other examples of literacy Investments are the teacher recruitment incentive Grant program for 150 million there's $40 million for literacy screening to support the screening purchases and trainings and then there's $100 million for the national board certification for staff teaching at high poverty schools uh there's funding set aside for school nutrition um there's an addition $106 million to fully
065fund Universal meal service this um is fund 13 so this wouldn't be a benefit to the general fund um but it also enables us to be able to uh uh better feed our students and have more access for families um and then the governor is also proposing an additional $150 million of Kit funds to purchase kitchen equipment and training efforts so moving on to the next slide uh so we put together some scenarios I know we have a lot of moving numbers um and obviously um things are going to change between now and June but trying to map out um at least here there's three scenarios obviously the information was as of last week so um there the information is a little outdated but um I've put together just a brief fourth scenario that would
066be if everything happened the way that it's outlined which usually doesn't happen but at least it would give a semblance of what we're looking at so the first example would be the least the less advantageous uh we're trying to come up with names of how to describe the three ranges um this would assume ongoing revenues would be about flat because the cola would be a loss of $6 million um even though it would be offset by if we were to look at a conservative funding of utk at the time of roughly $7 million um the district could also benefit from one-time learning recovery dollars of 5 million uh while These funds are restricted in nature um they can benefit the unrestricted budget Gap because we did have previously um funded expenditures from the expired covid
067funds and the learning recovery that um are projected to move over to the unrestricted side in 25 26 so that would enable us to continue to help fund some of those expenses with these additional learning recovery so that's how it could be a benefit to the unrestricted Gap um and then so this would be about a net Savings of $6 million in the scenario so bringing our 112 million down to 6 million I know this is a very conservative uh look um that's why it's it's our very first one because um we already know the co is out of date as an example and we already know based on the utk at this point that we would be receiving additional funds so moving on to the mid-range scenario assuming that again finally up Edie please
068sorry thank so um moving on to the mid-range scenario um similar logic so assuming the utk was um brings in an additional $10 million and that the discretionary block grant um maybe gets approved at a lower amount than the 1.8 billion so this would benefit the district by about $14 million which would then bring our $112 million gap down to roughly 98 million um and then the third scenario um a more ideal outcome which assumes the final state budget brings in the a total of the one-time um funds and um ongoing funds and onetime funds of $23 million that could bring our budget gap down to $89 million and so I talked about a very optimistic view um so if everything stays the way that it does and we and also that we're looking at
069a 2.2% cola so that loss of cola would be a negative a loss of $9 million um our TK would be positive with that additional 14 million of revenues uh learning recovery bringing in 5 million um the tricky part is how would we spend those one-time discretionary f so if you were to see receive 28 uh billion or million dollars um if you were to spend over three years as an example that would be roughly 9 million a year that could help offset um and so then we'd be looking at a total of roughly $9 million or if we were to be more aggressive with those onetime discretionary um using those funds over two years um would be a total of um uh $24 million that could help offset the1 million gap I know that
070was a lot of numbers um so I just wanted to put that out there so that um you could see that we do have some more potential positive outcome more so than that $23 million that we're reflecting and so at this point I want to turn it over to Dr Cook to um talk about ADV advocacy great um thank you um trusty vice president barera has a com questions before we go to advocacy um so on the Extended Learning um the additional Ada is that calculated on all of the students in the district or is that calculated on the number of students that participate in Extended Learning for the expand yeah so it's a funding rate which would now be significantly higher than our current times in the full TK through6 classroom based Ada yeah
071uh and then multiplied by the districts unduplicated TK through 6 classro so in other words let's say we get another $35 million you know as a result of that um the requirement is we make expanded learning accessible to all students we know not all students will participate um so does that allow us to can we spend that $35 million on the portion of students that participate in expanded learning so our understanding right now and U Dr Cook was able to arrange a meeting for us with Lao so we could ask a few questions and get clarification um so we have to offer to all yeah um so that is the requirement is offering to all and making sure that we provide spots for any student that is interested utk through six yeah so we do
072get the funding per pupil to cover all of the students but we would only have to spend for the ones that participate I think one of the challenges that um we're facing is that you know we also have to work with our providers and make sure that our providers have um employees that meet the basic requirements to offer services because we still do have to apply the 12 pillars of elop programming in order to utilize that funding so we know that there's going to be some time to like build that up our partn and we might not be able to offer to all students right away um based on what the availability is of those programs okay bar I think I'm if I'm understanding your question correctly we you get funded based on enrollment and
073it's our unduplicated count within our enrollment not on who participates in the program yes right and so we'll get $35 million in theory to run this program regardless of who IES right funded based on our so it sets up the challenge that I thank you uh drew the I think what Nicole is bringing up which is we get an additional $35 million not all of our students participate um we don't ever want to be in a position that we leave money on the table so I assume what that means is we're increasing the dollar per student that we're spending on the students who do participate so we still have a lot of questions um regarding like what the transition is because this is the first time anything like this has happened so I think we're
074still waiting to get guidance from the state on like what will the transition be what will the requirements be during that tra that transition so that we can make sure that we're maximizing the funding that we're receiving but still adhering to the 12 pillars of the elop uh quality programming yeah no got it okay thanks why don't why don't we let yeah Dr Cook wrap up here this one more slide two more slides and then we'll just go to General board questions about the whole thing okay I actually have three slides I'm sorry but they're quick um uh so I'll start uh I just want to start with a quick reminder and the slide is on our our state advocacy I do have a slide on our federal advocacy efforts we'll get to in a
075moment um but I think that the big picture State context that school Services is provided and our local context is really important to keep in mind um when we're thinking about the advocacy that we be engaging in this year uh and I wanted to start with a reminder of the advocacy priorities that our district adopted for 2025 um and all of these were identified as priorities because of the P potential they have um to impact our budget and decrease the deficit so they are expanded learning investing in middle school students um funding the cola at that 2.93% projected level funding the TK ratios um which are required to be implemented in 25 26 and investing in special education so everything that's kind of in that blue violet box um was one of our adopted priorities
076in addition to the priorities that we adopt um San Diego UniFi is participating in an ongoing collaboration with other urban districts in California uh in the fall our super intendent met with superintendent from other districts and they wrote a letter to the new Administration with recommendations to consider as they crafted the January budget proposal um and that was a partnership with Oakland La Long Beach and Fresno and um those priorities that were included in that letter are highlighted in the green teal color in this graph so not surprisingly and and not by coincidence there's a significant overlap in the priorities that we've put forward and and the priorities shared by this group um the ones that are bolded with little check marks have been reflected in some way in the governor's budget proposal we've heard
077a lot about them already so I'll just go very briefly uh for expanded learning for the last two years we've been advocating for the lower rate that we receive to be stabilized and to be at an adequate rate uh the governor's approach instead qualifies us for the higher funding rate rate which as we've talked about it would increase our funding by a significant amount I think close to 80% um with the opportunity and the obligation to to offer to all students um as far as investing in middle school this is the the grade span that through the lcff receives the lowest per pup amount of funding and I think has also received the lowest amount of attention um and our superintendent has been meeting with assembly member Alvarez who in addition to representing a lot
078of the schools in San Diego unified is the chair of the assembly Budget subcommittee on education um to talk about what we're doing at San Diego to transform the Middle School experience but also how the state can be our partners in increasing those Investments um as we've mentioned Cola was The Proposal is to fund Cola at the statutory level which is currently 2.43% but which could decrease um so we'll be continuing our advocacy to get the ability um of funding at the higher rate uh the 10:1 ratios really happy to see the governor's proposal um to really adequately fund that transition The Proposal the governor's proposal did not include um any investments in special education other than it is worth noting that it included a cola uh the statutory Cola again which is currently 2.43%
079that's not um guarant gued so it is a positive to see it included but we want to advocate for more because this is a very quickly growing um portion of our population at San Diego unified and the costs associated with providing the special education services has increased significantly and finally the block grants so the budget proposal did include both the $1.8 billion discretionary block rant and uh promised payment of the learning recovery emergency block grant um so it's kind of you know we've seen a almost half of the priorities included in the budget proposal but I do want to take a moment and just caution um and highlight where we are in the budget process which is at the very beginning um the governor's proposal really lays the groundwork and sets the stage for ongoing
080negotiations with the Senate and the assembly that will occur all the way through June when the final budget bill is passed and then enact in July um so while it's encouraging to see uh these priorities reflected it's doesn't mean that our advocacy is over on these issues uh a lot can change between now and when the governor um updates his proposal at the May revision changes in the overall economic Outlook could impact whether these proposals are included and I think it's worth noting that uh the governor's budget was developed before the wildfire S in La occurred and we know that those will have impacts on both the revenue and cost to the state um to help invest in recovery um that could also change between the May revision and the final budget because while these
081might be um priorities for the governor um the legislature May hold different priorities and and it will be a negotiation so as far as our continued advocacy will really be for um supporting what we like in the governor's proposal and being vocal about the the need for these Investments um and also uh conveying to the legislature what we feel is missing from this proposal um based on our priorities concrete next steps we will soon be sending a budget letter to the legislature outlining um our response to the governor's budget and our priorities and in a few weeks we're also planning an advocacy day where a leadership will come to Sacramento um and have inperson meetings with legislative leaders um and leaders in the Department of Finance to have these conversations and then finally our um
082collaboration with the group of urban superintendant is ongoing with Collective voice we represent nearly 15% of the students in California it's a very powerful partnership um that we will continue with joint advocacy letters and um we're also planning a a Lobby or an advocacy day in Sacramento with that group um I'm going to make it difficult I would love to skip two slides ahead if I can thank you that's perfect um so and I'll read these numbers because I realize it's it's quite small to see um so that was our state advocacy we also engage in federal advocacy and before I get into what our priorities are and what we're working on I wanted to make sure that we had some context for what funding we receive from the federal government um so the smaller
083pie chart is showing the federal um Revenue that we receive as a total of our full um budget represent around 7% of our budget uh within that some of the largest I'm just going to walk through what what these slices of pie are so starting with a big dark blue one um in the upper leftand corner that is our title funding we get around $50 million um that's our title one will be the majority of that which supports low-income students but we also receive title two for professional learning title three for English Learners and title four for academic achievement um um moving clockwise we have our Doo grants which are from the Department of Defense educational activities we get um construction and other grants from them uh the Orange is our EPA green uh bus
084or zero emission buses that we've received $12.4 million the gray is our food services so that's mostly our our school lunch program that reimburses School meals for low-income families uh impact Aid Prov provides um assistance intent that's uh to support services for our military connected students and also to compensate the district for the loss of property taxes for the federal land within our district boundaries that's 13.5 million uh the next Blue category is other um there is a list and if there are questions we can walk through them uh and that's around 16.4 million and then the green is our special education 27 million um so that's where we're getting funds from the federal government um I do want to call out a couple distinctions some of these are competitive grants are EPA green buses
085the DOA grants uh some of them are formula funding so it's funny that we get based on the number of students that we serve who are low income or meet other categorizations uh and in particular our title funding special education impact Aid and food services are all formula funded um our advocacy priorities which I'll show on the other slide but I it's helpful to I think still see the pie chart uh that we adopted this year we're advocating to protect title funding as you can see that's a very large proportion of the funding we receive uh advocating for impact Aid and advocating for idea for special education that's the yellow and the green um one of the reasons that these two were identified as priorities even though they're not the biggest slices of the pie
086is that these are two um two funding streams that have been profoundly underfunded by the federal government for many many years idea was established 50 years ago with the commitment to fund 40% of the additional cost of providing special education services um it has never reached near that level and in fact it's San Diego unified it supports less than 7% of our special education costs uh and the impact aid program is similar it was enacted in 1950 the last year it fully received funding was 1969 uh and we received around 15% of the amount of funding we would be entitled to were the program fully funded so um now if we can go back one slide yes amazing thank you um so in that box are federal advocacy priorities so it's the three programs we've
087discussed as well as we adopted as a priority um protecting our vulnerable students with special attention to our immigrant students our lgbtq students or others that may feel unsafe uh in the current environment attending school um our advocacy priorities have not changed but a lot of the federal context and the and the landscape has changed so I do want to take a moment um to just acknowledge some of the things that have been coming down the pike uh for the last few weeks uh first there have been 10 executive orders and proclamations related to immigrant ation which we T touched on briefly earlier in the presentation um I included that here not only because uh protecting our students and and creating a safe environment is one of our priorities but it's also from a budget
088Workshop perspective important to note because any change in attendance that is caused by these feelings of um lack of safety uh will have a direct impact on the state funding that we receive uh there was a federal funding freeze momentarily um so or a funding pause this occurred last week I think the the days are kind of running together um this funding freeze originally was ambiguous in its scope and and stated that all federal aid would be paused eventually a clarification was published saying that it would impact um competitive Grant programs and that's why I wanted to kind of specify like what is a competitive grant program what is a formula program um eventually it was rescinded but it it's on this list because it is something that I'm still keeping tabs on and tracking
089because we don't know when if or in what form it may reappear um last week there was an executive order entitled ending radical indoctrination in K12 schooling um this executive order directed the Secretary of Education Human Services and the Attorney General to develop a strategy and provide recommendations to to eliminate funding for um districts for programs that supported um what they termed gender ideology or um discriminatory Equity ideology so it's too early to really say what the impacts of this proposal may be on the district for it's not a um there is not a proposal in place to do this it's a direction to the Secretary of Education to make a plan to inform a proposal so we're still several steps away from being able to truly assess the impact but I wanted to highlight
090it because it is something that I'm definitely keeping tabs on and and tracking to see what happens uh and then finally uh executive order called expanding educational freedom and opportunity for families this is another situation where the executive order itself does not Implement a new policy but it directs the Secretary of Education um to provide guidance to States on how they could use formula funding so that's tital idea impact Aid and others um to support school choice uh including private and faith-based schools and so that has potential implications for um District budgets if the federal government isn't increasing the total amount of funding but it's going to more and different types of schools um that could of course have an effect uh again no immediate effects but it's something that we're keeping track of uh
091and then also today um it's expected in the next day or two that there will be an executive order to um dissolve the Department of Education and that's another one where it's a we need to track it closely it's important um but we don't have answers on potential impacts at this time next steps uh so really a lot of the work in this area is just tracking and being prepared to respond to to new policies um we need to know what's happening and and we need to be prepared but really our commitment to our priorities is unchanged by this shifting um landscape and the things that are happening uh and in fact I think more than ever it's important to um trusty bosa's point to to work on our Coalition building uh for instance with
092idea this year we've really stepped up our advocacy in partnership with the um EA full funding Coalition in San Diego unified um you know we have three representatives in Congress or two State Senators but being able to tap into a much broader California and National Coalition um to really advocate for these uh priorities will be our continued work this year uh specific next steps we're currently um drafting our letter to the appropriators uh we get to write them a letter at the same time for both fiscal year 2025 5 and 2026 because they are working on last year's budget as well uh to convey our priorities on um special education title impact Aid and then of course on our priority of protecting our students um and in March yes March I'm getting my dates right
093we will have an advocacy day in DC to actually meet with the decision makers who are making the Appropriations as well as with our San Diego delation um and that's everything I had to share and I'm happy to any questions thank you Dr Cook we'll jump for two slides now to our dialogue section and now it's time to release the Krakens here and uh board we have board champing at the bit uh I I have a stack so the stack I think Richard had one hanging little question left there and then we'll go to trusty Hazen and then to trusty wers pain thank you president peton so this is the kind of perennial issue so the governor identifies the 1.8 billion block grant as one-time funding so it's either going to be a $ 1.8
094billion block grant or a $3.4 billion block grant or you know something something in between identified as one-time funding and Amy thoughtfully said okay so we should think about how we spend that you you know over three years um but I guess it's really kind of a you know Patty and John question so there's $3.4 billion in prop 98 designated as onetime funding and the form of the block grant and the uh reducing the minimum guarantee so what happen and that's for 25 26 so what happens if in 2627 we have at least as much prop 98 Revenue as we do for 2526 what happens with that $3.4 billion that is called one time I think the governor is scoring the 3.1 $3.4 billion do this one time because it's unexpected growth in the current
095year guarantee the current year guarantee unexpectedly increased by about $4 billion and so you as John if John would have given you his entire economic presentation which is riveting um he would he would have told you that the state's general fund and by extension education funding is heavily reliant on the state's wealthiest uh residents and they earn their revenue in the stock market and so the governor his his budget assumptions and his Revenue assumptions assume that most of that the increas increase in the revenues are attributable to uh stock market performance and capital gains and so he doesn't he doesn't want to assume that that performance is going to continue into 25 26 and 26 27 and Beyond so he's being he's being conservative but you're right it's a it's a fiscal Choice yes yeah
096thank you trusty Hazen this is actually going back to trusty bur's question before and it's just a clarifying question so this was um around the ELO P so what I'm trying to understand is or at least I think what was shared was that we don't expect this approximate $35 million um to impact the general fund our general fund is that right correct it's a restricted program and so you would have to spend those dollars on that program so the before and after school you can't spend it during the regular school day um it's outside of that normal school day so the only thing left to work out is how many students can we serve um but these dollars won't do anything to address the deficit there could be little pieces so like utilities some maintenance
097cost you know if you're um more frequently replacing carpet painting um you could do a portion of your custodial cost so yeah that would those types of things could bring you relief on the unrestricted side the indirect rate that we get to charge for restricted programs things like that so that does provide indirectly some relief to the unrestricted but but a small amount thank you I would say the only opportunity that we're still getting more information about is that starting with the 25 26 school year we can uh recoup Ada for participation in before and after school programming um but we wouldn't I would anticipate that we wouldn't see that Revenue until after the 25 26 school year because we would have to record all the data reported to the state and then they would
098determine how much Ada we would recoup from that um trusty W Spain thank you I must say Dr Cook this is the first time I've seen the federal funding he's given so clearly because that's a question that we always get um the argument was uh well they said they were going to close San Diego unified and La unified um districts down and so one um one comment was well Federal funding it's only 7% of our budget so and then you've explained it very well so you're going to take away money from special needs children and from those children who need it most I mean you've done a wonderful job so that I feel like we can just share this one slide with the general public so that they can see that out of The 100
099100% it's only that little sliver of 7% and where it goes I dare them to not fund it because every state every city every county has some special needs children who need some service and they probably insisted that we get more they truly understand that we don't have the monies that we need for that population rather than to give it to another airplane or a B B1 whatever b35 or whatever it is right it is a b35 right F35 oh and thank you and in full transparency our amazing budget team made that slide for me I don't take any credit uh trusty bazo thank you president uh Pon I just wanted to go back to the slide where you're talking about the current law requiring student needs assessment and lcap beginning 2526 for any unspent
100funds because I wasn't clear on what exactly that means um since that's looks like it's going to be something new is that going to impact the budget I mean hopefully we don't have unsed funds but if we do is there some kind of penalty or what just to get a little clarification about what that is yeah that was a change in legislature last year or was it this year so it it was a new requirement for all districts that didn't spend their funds by um the 25 26 year that we did have to do A needs assessment I think internally our previous discussion is that we have enough data and factors that what we currently are already already using those funds for would be an alignment of that needs assessment have if you want to
101go in more the only thing that I would add is the requirement of the lcap so the you have to program the learning recovery emergency block grant dollars into your 2526 lccap based on your needs assessment um it's really remember that the learning recovery emergency block grant when it was provided for in response to covid-19 was to really help accelerate learning for the students who are most impacted by um isolation and distance learning and so it's really evaluating the needs of those students and the supports that they would need and then investing those dollars in and in evidence-based interventions that that are you can demonstrate you know move for those kids and so you'll really see the instructions of um how you program those dollars in the in the local control and accountability um template
102okay seeing no further comment we'll turn back over to Faby this oh I didn't see your hand sorry that's the student microphone well first off thank you all very much for the presentation it's been very clear digestible I want to touch on federal funding with the new Administration and everything going on are there any particular areas of the federal funding budget that we should be worried about that we should be looking into preparing that if it gets cut how are we going to support those students that's a difficult question to answer given I think the lack of clarity um around a lot of the proposals that have come out we do know that um there has been interest as I mentioned in allowing title funding and other funding streams to be used outside of public
103education um I I think that typically support for um idea is a little less contentious than support for things like our title funding but I don't really feel confident um pointing to one program or another um we're kind of watching all of them it all feels a little bit uh I don't want to say precarious but like we don't we don't want to focus our attention on any one thing we're looking at what's coming down analyzing it assessing it um and just trying to be prepared to respond to anything that could happen all right Dr G would you like to yes I would like to set the context because this is I don't know about you see don't you welcome standing up and walking around and talking because there's like seven different things that I
104want to talk about so um there's four stations set up I know our budget review team um will be in several different places ready to listen to um and dialogue with anyone that would like I'm going to encourage everyone to stand up make their way to a station if it gets too full you know the drill um restrooms are over on the other side but we're going to reconvene at 6:45 so it goes fast and then be human and introduce yourself please because we're all here because we care about the state of our education system in San Diego so thank you and discuss like the SNL skit used to say discuss thank you e e e Tes T does e for e I you e e e is even for e thank you thank you
105I told you was going to go fast e here second Bell return to the theater take your seats okay so are we going to come back straight into the okay so we're now we're now to the part of the evening that really drives ticket sales to these workshops and this is how do we deal with the remaining 18 113 to 89 and I'll let uh and I'll let Ella Amy and Drew take take the floor next slide that quicker let describe it it's a blue circle okay so um visualize this slide that outlines the key steps we're taking to address our current budget challenges while ensuring our Focus stays on quality education for our students you'll see three main focus areas represented in these circles these aren't isolated initiatives but rather components of a comprehensive
106strategy at the center of it all is balancing the budget uh to achieve a balanced budget we're implementing an attrition model and limiting our March 15th notices this proactive approach allows us to manage our staffing levels responsibly through natural turnover uh minimizing disruption to our employees and our programs this feeds directly into reducing the structural deficit in the multi-year uh by Ma carefully managing our staffing cost over time we can address the long-term effects of the declining enrollment in our budget all of these efforts are in service of focus on quality education for students our financial stability is essential to providing the resources and support that our students need to succeed moving on to the next slide as we Face a significant budget gap of 112 million the slide outlines the comprehensive strategies were employing
107to ensure fiscal stability while prioritizing student learning this isn't about just about Cuts it's about strategically realigning our resources to maximize their impact the central figure of 112 million and highlights the magnitude of the challenge that we are addressing this Gap necessitates thoughtful and impactful solutions these adjustments represent a combination of short-term strategies and long-term efficiencies to contribute to the overall Gap solution as you can see we're not relying on just a single solution this plan represents a balanced approach combining expenditure reductions Revenue adjustments and program realignments next one please so one of the key Tools in addressing our budget Gap is the is the supplemental early retirement plan or Ser this was initiated in November and the opportunity to participate in the Ser closed on January 15th Ser accelerates attrition and provides an opportunity
108to look at Personnel restructuring and to generate fiscal savings as we show here uh 969 staff members that numbers move moved a little bit as we're refining uh took advantage of the opportunity 214 more employees than we originally anticipated which again provides us with more opportunities to make adjustments High chart below provides uh the pie charts below provide key financial considerations with a Sur was offered to All District employees uh regardless of bargain unit or their the funding source behind them uh looking at the chart of the left we can see that our employees electing the Ser of the employees uh elected the Ser 79% of the employees whose funding comes from the general uh comes from the general fund unrestricted the big blue wedge there this is in line with our expectations and provides
109direct opportunity to Aid in resolving our budget cap budget Gap and as we proceed through our work we'll continue to look for any secondary impact for general fund on restricted for example when a when an employee vacates a position that is funded by other resources are we able to transfer a person currently funded by general fund into a newly cread vacancy and another resource then if you look at the pie chart on the right show a breakout of Sur participants based on their bargaining unit this is important as the range and structure of salary schedules uh and the mix of employees has a bearing on the cost of the Ser uh as you can see the large blue wedge on the right there shows sdaa San Diego Education Association members being nearly 50% think it's
11049 and a half of those taken the Ser that's higher than we initially anticipated at 45% and results in slightly greater savings over the next five years so then in the next slides we'll we'll discuss how the Ser fits into the overall budget development approach going forward um so again we have this slide to provide some context and just kind of keep that in the back of our mind as we all continue through this work like many school districts in California as John and Patty certainly can tell us on a test too uh we continue experience declining enrollment for next year for 2526 our current projection is 95,000 students which is 741 fewer students than we have this year and then if you look at this chart from beginning to end all told from 20156
111the first bar on the left what is projected for next year will be down 12503 students that's a a drop of 11.6% that even considers you know we we've had the Boost in recent years of utk participation um and so as we continue to develop our budget for 25 26 and to look further as you saw in the previous slide with 969 District employees taking advantage of the Ser we have an opportunity and need to take the opportunity to reshape our district and best re best uh align to our realities so again just for back of Mind here next one please Eddie um so we talk about attrition we we uh call it our fiscally aligned retention management model um but this is that work we're doing as again more employees than we anticipated are
112taking the Ser we're trying to manage our way through this um so the next few slides to discuss our discuss our approach moving forward based in light of the information you've already heard today a slightly improved fiscal Outlook and a very successful Ser as well as the goals you see here with this notion of retaining current staff and limiting the March 15th notices we have to provide of solving the budget gap for 2526 but in so doing also positioning ourselves as best we can to resolve 26 the 2627 budget Gap I know um without any more strikes than necessary I know in our group talking about that that's one of those things we're always here we're always doing this can we can we break that cycle at some point and then recognizing just the the
113the Personnel movement and all the work that has to come behind this even as we are right now as we have nearly a thousand Employees leaving uh our our system what does that do to it um so our our this is really been the focus of our our budget review team on on building out this fiscally aligned retention management model next please Eddie so as we get into it um and to ensure we develop a balanced and compliant budget we have to remove positions from our budget um we have to take vacum positions out and this REM this means positions Across The District central office centralized services or um you know kind of that in between a central office department or a central office Department that provides direct bodies to school sites School sites and
114then we have to look at um you know and as always we're we're intent on minimizing the disruption to a school into the classroom um the ser coupled with our standard attrition because other people will still be leaving this District beyond the Ser presents a great opportunity to make these adjustments through the vacant and soon to be vacated positions next one please Eddie and then as you saw in a few sides back so we have uh a downward Trend to our enrollment uh we have the opportunity to make adjustments and consider how we should operate within enrollment at this level so what does that mean mean for us for school sites we're looking at Staffing to contract we're looking at consistency in classified Staffing at our school sites and even as we are doing this
115work now we're realizing there we you know as much as the the years of hard work have been we still find imbalances and inequities in in Staffing our schools and so it's an opportunity to resolve those as we work through this when you think about central office um it's the things like really looking at our staffing what do we really what do we need what are we uh what do we need resources do we need to comply with those things that we have to do um and that's the that's a lot of the work we've already done when we talk about our central office if you remember a few slides back uh we've already gone through round one of our central office SBB we've already talked about a notionally 20% reduction across our central office
116so all those things are are coming to fruition as we work through that if you again remember we talk about another goor round because we're trying to figure out all those Ser folks that are are leaving how does that build into this um but when you look at central office minimum required to comply we really need to challenge ourselves to leverage technology uh to to really consider how and uh how we are doing things now how how could we do them more efficiently in the future when we think about our process and systems and being uh data driven in what we do and really kind of uh holding to really understanding the and challenging the what we do the why we do it and how we do it so that's the um that's the work
117work ahead of us I think in some ways here we are in February 4th and we thought we were going to be further along and it's just it's a lot that we're we're wrestling as we try to make these pieces fit um and it goes quick we have time for either question well the next slide is a dialogue slide uh trusty pson so we can either head into questions or again a little stretching our leg and and talk with our groups um I feel like this is kind of a hanging slide here do you want to talk a little bit about the timeline real quick and that way we can just sure yeah yeah I think we want to skip two slides forward yeah we're gonna come back to the discussion so as Drew mentioned
118Su is currently open reopened for the central office so departments are busy reviewing their budgets looking at those position those employees that took serps and how can they either rebalance or make perhaps make different decisions u based on that Sur information we also had delayed the school sites sbbs um from the end of January to March um as Drew also mentioned we needed that additional time to analyze the Ser given the Ser did come in much larger and then also do um how do we incorporate that attrition model so um School sites will receive their SBB on March 3rd they'll have two weeks to complete that uh roughly through the 17th of March meanwhile Finance is uh working on the second interim in February incorporating any new updates from our first interum that we presented
119back in December uh May Revis we all look forward to that that's the next update that we received as far as the governor's proposed budget and any updates as far as negotiations with the legislature and then finance will incorporate any updates into the budget and then we'll be back in June for the approval of the lcap and the budget all right and with that we will shift to board discussion do we have any questions or comments from you have a question trusty W's pain with putting back the central office and then allowing the sites in March to deal with SBB we're not going to run into any difficulty with any idiosyncratic positions um that need to get notices on March 15 um no I think I think if we can be blunt we've hesitated to
120say no March 15th notices because there are a few things we just need to do to clean some things up so we do expect to bring that but um no large wholesale numbers no that that's our intent it does and that also part of what makes this again tricky as we're trying to figure out make these decisions but also build that into our second interim plan that that again moves our budget forward considers those things and and that again was uh trusty wier's pain why we we felt we could move the School site SBB process into March because we need more time to think through this the sites will have time but we're not up against a a a um a very big hard deadline for March 15th nois and then I have um trusty
121baldis and then trusty Hazen yeah quickly I should have done my homework before but with our declining enrollment across California in comparison to other school districts like La unified is our enrollment decreasing more quickly than others or where's our position right now and I don't quotee me I didn't look at them to look at it today but basically we have faired better than most uh urban districts in California I think some of that you can look at um are embracing utk early and bringing that in and then there's other factors um just in the demogra demographics of the area uh we do have some areas in California that are seeing growth and so as it gets more expensive to live on the coast you'll see families migrating to counties like Riverside um San Bernardino so
122you do have those pockets of growth um for our size I think compared to some of our surrounding districts we are actually fairing a little bit better than others I think so it does vary but overall there is the general trend of smaller birth rates um it just becomes more expensive to live in California you know we did see a big exit during covid um you know as a result of uh you what was going on in the job market and so um but overall we're about average I believe John gry has I'm just going to add the last Statewide data we had um was about a 2% uh decline every year so you're burying better than a lot of districts and just to add this is actually a national Trend not just California so
123a lot of urban school districts throughout the country are have are fairing worse than we are but yeah it's not just a California thing well and if you just think about our our subdistricts I think Richard and or TR vice president Perera and trustee wers pays are at about 31,000 students resident students for a population of 210,000 whereas subd District sees it around 13,000 resident students same population so you can really see I don't know I know what's happening but we have but to be clear on the coast we have very high rates of neighborhood participation so it's basically a function of the challenge of raising young families economically cost of housing um uh trustee baldis so I I was going to say I know we have said it's because of like the cost of
124living and cost of living in San Diego but it's more directed at superintendent bagula are we are we serving those students who are leaving our district so that we know if there's a trend of students leaving that when there are going to be Cuts in our district we're ensuring that those students are supported to the best way possible we haven't um had a large plan but I think we have to look at just our enrollment Trends and I'll actually give you um a piece of information that I didn't know um we practiced when I went to visit Webster Elementary School the principal said one big change that you could Implement is is families when they register for our utk here and I don't know if you're a parent and have registered a students at how
125many forms you have to fill out they have to re-register for kindergarten and and I think that that's actually a point for us not to have to do that so if we want to retain our utk students to just enter kindergarten and say you're registered at Webster you're now continuing to Webster you should just be able to continue to Webster and so I think there's little things like that that we can make adjustments in our own practice to not make it difficult for families to continue at the school that they've already selected so I don't have exit Trend data or or reasons for that um but I think that's a really good point so thank you we'll think about how we might be able to do that but I also think internally there's mechanisms that
126we ourselves have imposed that might make this a little bit more difficult so we're looking at this how can we increase enrollment and keep our kids thank you Dr bagula trusty Hazen you waited patiently I wasn't sure I had a question but now I feel like I'm being put on the spot um I do um appreciate this L last bit of conversation um around any efforts um we can take to retain students um who aren't leaving San Diego um but are choosing to leave our district I know uh I think for the last few years we've retained about 90% of TK students who stay with us to kindergarten I think there's a huge opportunity for us right now to make the case to those families that their child is going to receive a great education
127in kindergarten by staying in the district we're talking about you know hundreds of students um who we would like to continue educating likewise I know Dr bagula you shared with me um that there may be an opportunity around online learning um to be able to increase um enrollment that way so I hope that we're thinking about all of the ways and I know it seems like oh well it's you know 10 students here or 20 students there but I think it all it all makes a difference so I hope that we are continuing to do that work around enrollment promotion and around retention um and I guess and maybe it's premature but as we think about still having to close about a 90 million plus or minus uh deficit I'm wondering if there's any addition
128Clarity that can be provided um about some of the steps we anticipate taking um to address this deficit I know you've mapped out sort of what comes next and spoken in generalities um and I'm wondering if there's any additional Clarity that can provide be provided at this time so I I I can offer some where as I mentioned you know we've we've worked through that initial process with our central office and that number is somewhere you know at least our initial work um that's number somewhere in the 50 to $60 million range and again we're fine-tuning we're making sure we understand and then we're also looking at how do we layer our ser and our Ser data on top of that so we've we feel like we've taken a pretty good bite out of it
129um we're still trying to understand the impacts of doing that and then we also realize we need to bring that back to the board and our intent is to do that it's again when we layer on this next piece is we didn't want to tell you something and then turn around and change it so that's one thing we in terms of the central office work that is almost done when do you anticipate being able to share more details um with the board I think we are tracking to being clear with you before second interim so a month from now um other pieces for example we have on our within our mix mandatory Furlow and that's a conversation with the bargain units that's just starting out um I don't know if others want to chime in
130I'm drawing a little bit of a blank on some of the other things but so I so I can um share that we did talk uh with our principles at the principal Institute about the delay of opening up their site based budgets so that we could do the Sur analysis and what they can anticipate when they open those budgets so that they can see which positions did opt to take the Sur and which ones um we would fill through an administrative transfer process so what we're trying to do is really leverage the administrative transfer process um mainly for our classified positions to fill vacancies at school sites that may be were positions that were excessed during central office um budgeting season so that's part of the big analysis and that's why we don't have the
131exact number for central office right now because some folks will be administratively transferred into school-based uh critical positions that we know that we need to fill and so we really do need to wait for our principles to be able to finalize their site-based budgets um which should be closing around March 14th and then we'll have to do the analysis of all the data overlaid together with central office um and School site budgets to see what that cost savings could be um if we're really going to be limiting those notices and leveraging as much of those surf vacancies as possible it's great um I don't have many questions here I just first of all I want to say this is clearly Vulcan chess a lot of things happening um simultaneously and a lot of different levels
132to be playing to be um working on um so my part and get yourself a budget team that loves this work um and uh so I really appreciate that uh if we can just sort of signal as you're to the public and our staff as you're getting your first look at this the serp where the in the PKS categories they are and where do you see some of the challenges I know you've we've had offline conversations about special education and maybe having some challenges there or about Transportation where do you see some potential challenges are going to be maybe difficult to navigate in terms of matching up where we're going to be right SI sizing and where the serfs are coming from so I think you mentioned it special education is going to be really
133challenging um because we do have a large number of both education Specialists and parent Educators um that opted for the early retirement incentives so we are going to have to think uh more creatively and sooner like now on um different strategies that we can use to bring uh those Educators um into our system I think you know one of the strategies uh I know personally is that we offer an amazing Health and Welfare package um and so that can be very enticing for folks um to come to our district and so how do we get more of that uh information out there not just within our communities but with our University Partners um through those pipeline programs and intern programs to get as many of those positions as possible filled for the start of the
134school year um we love puzzles as a budget team so we've been looking at a lot of very granular data and doing kind of a puts and takes like if this site you know is over by a position and this site needs the same position like how do we balance it out and so I think we're pretty confident that we're seeing like a lot of ways that we could do cost savings through that effort um as far as our non-sp special education Educators I don't know that the numbers right now are really worrying us too much um because it kind of is um sprinkled out throughout different credential areas um and as we mentioned since we're in declining enrollment we haven't really uh right sized for lack of better terms since the pandemic and so
135having those folks take the serp will actually get us to where School sites should be staffed when we're talking about current enrollment levels and truste Pon one of the other things you mentioned another key area is transportation that's a um a nationwide problem recently has been even finding bus drivers and so then as we have more that are also moving on um that just adds to that challenge and I think one of the things we've been working through and I think it's an example of of of what we're wrestling with here is can we do that differently can we um can we look at um a different uh job model where you're maybe a bus driver and a food service worker you're a a and and even prior to that we're looking at does it
136have to be a bus can it be a van because we have a lot of oneoff trips we're seeing more one-off trips really um you know the it's a separate conversation but the homelessness crisis we're seeing many many more students that were transporting be related to that but um all with the idea of attrac and retaining people that want to come and work for us so um can I again be a van driver in the morning and serve lunch in the afternoon and I've got a a full eight hour day of a job and benefits and I'm here and and it's working through those kind of things um and and there's variations on that theme everywhere we look so that's part of what we're doing sounds like tell your friend I was at Mission Bay
137love your Wetlands day and and somebody came up and said hey I really liked your speech I said what do you do they said I'm a special education teacher and I said oh have you thought about a challenging rewarding career at San unified so get out there and uh we we need we need him badly sorry um so Dr buul would you like to close us out on this presentation uh yes and I believe we're going to have a little bit of time to to still chat with each other um if that's okay uh I I hope you appreciated that time of coming together I know I got to speak to two parents I got to speak to two teachers um and and really appreciate the collective responsibility but this specific piece of that I
138want to discuss is I'm I'm going to say I'm we're really pushing ourselves to think about the Sur numbers and to think about that large number as an opportunity for redesign like how might we organize ourselves differently aligned with our goals and guard rails and saying what are we trying to accomplish how might we do this work differently and and leverage this as an opportunity to do so and so really the question for for all of us right now is what are some considerations that we have to have what are some considerations that might pop into you into your mind if you as you think about what we're trying to do leverage this 900 some number into an opportunity for a redesign to actually hit a structural deficit in the off years as well but
139also to rethink and reimagine how we do school and I have a lot of faith in us uh I'm I'm thinking about the very we intervened and Inter interfered with third Friday big bump of hundreds of Educators across our system into like single number so can can we do hard work yes we can we need all of you so if we can just think about what are some considerations as we try to leverage that number it would be great how about 10 minutes to do so um to talk to each other stand up I know we all want to leave right I know it's a long night um but I think it's important to get any sort of considerations that we might not um have considered in order to really strengthen that idea and then
140we can come back at 7:30 yes is that okay okay so small small group small group stand up talk thank you so much I appreciate you all right and then to be clear we'll come back and have public comment if anybody like to come e e e he thank you for coming back to group say thank you to the people that spoke with you come back to group please you want all right folks take your seat thank you so much we're in the final stretch uh Dr bagula is going to do a bit of a bit of a report out and then we'll move to final public comment I just want to say thank you for your willingness to to participate also for your support for coming out here um for a team I really
141think this kind of issue um requires all of us to come together I know that I appreciated the first ation like I shared I spoke to two parents and then I spoke to two teachers and then even the second one I actually got two great ideas and that's exactly what I was trying to think about like how who do we need to talk to what are some considerations and I'm going to say over and over again that we have the solutions internally yes and so we have the community it's just a matter of making sure that we have time to talk to each other make sure that we have time to clearly articulate thank you team for putting together such a clear presentation of all of the numbers of all of that we have and
142then to get us discussing so I hope that this budget Workshop felt differently felt more um Collective you felt heard um I know that I heard you and like I said I'm writing down two ideas that I got before I forget them because I think they're great and I saw Christine morsa doing the same thing I saw Marisa doing the same thing so I know that we got some good things to bring back to budget review team so just thank you for um your collaboration but also your willingness to participate in dialogue so so thank you for this opportunity to rehash a workshop thank you Dr bab and speaking of being heard um Miss stz tells me that we currently have three uh members of the public who would like to address us um please
143step to the podium uh Miss stz will read your name is Antonio ESO Antonio still here Raquel ESO Zack Burton you have three minutes it looks like your clock is set on the yeah I'll keep it relatively quick here um uh trustey president Pon uh Dr bagula and Este steem members of the uh Board of Trustees wanted to just um introduce myself my name is Zach Burton I'm the PTA president at Barnard mandrin Magnet Elementary School in Pacific Beach that's in the Mission Bay cluster and um I came here just with the message of thank thanks and gratitude for you guys I think you're doing a fantastic job I appreciate everything that you do for our children um it's cool to see people in public service whose hearts are in the right place and who
144care deeply and are passionate about what they do um I know you get a lot of criticism from the public and all I have is just good words and thanks for for you guys and everything you do um budget team really appreciate everything you're doing I wanted um today just to advocate for the U Mandarin language program at Barnard Elementary um it's a unique offering um I speak on behalf of the 475 students and their their parents and Guardians at the school and um uh it's a wonderful program the kids are super smart and a lot of that is due to the leadership at the top and their teachers they pick it up so quickly it's inspiring to see how they learn and just their passion for knowledge uh we just need a couple things
145um the andin language curriculum and a mandr language resource teacher and and that's basically what we're trying to advocate for and what we're trying to Hope is included in this budget cycle and um I hope you all have a great evening and um happy year of the snake thanks everybody thank you Zach that's it does anybody else want to sign up here all right forever hold your peace all right um so I will just say in closing we are about to adjourn here but I want to thank all uh parents and community members that showed up I want to thank our guests uh from uh the great white North I guess it's not that one yeah it's still white from a snow perspective sorry yeah was sry Jesus Christ um and thank you to our
146staff and thank you for the board for being so engaged um and when's our next uh next week we have our on Tuesday next week we will have our full board meeting thank you so much and um we really I think we're going to be able to get through this so with your help this meeting is now adjourned