001I call regular government meeting to order. Mr. Santa Cruz, can you please lead us in the pledge? I pledge allegiance to the flag of the United States of America Jimenez. Present. Governing board vice president, Mr. Harry Garwell, present. Governing board member, Mr. Rudy Santa Cruz, present. Governing board member, Miss Maria Hernandez, present. And governing board member, Miss Maria Guzman, will not be present tonight. Thank you. Do I have a motion to approve the February 26th, 2026 regular room meeting? There's a motion. Is there a second? Second. Okay. Call for the vote. Motion carries. Next, approval of February 12, 2026 regularly governing board meeting minutes. Is there a motion? Is there a second? Second. Any discussion, changes? Hearing none. Call for the vote. Motion carries. Next is governing board reports. First is Mr. Garwell. Uh yes,
002Madam President. Good afternoon everyone. Uh just got a short couple of things I wanted to to bring forward. First of all, there's a number of u legislative bills that are going through the house right now um that I think are things that we need to keep an eye on that may impact school districts directly and the way that they're structured. And uh there's a couple other bills also that are going through the house that will directly impact uh the way schoolboard members, you know, um are on their uh on their elections and what have you. So, those are two or five actually board or bills that I've been monitoring to see where they're at. Uh, which are very important. The ones on the education side are the ones that are more troublesome because they could
003actually change the way that, you know, we're funded and how things are structured. So, something that we need to keep a close eye on. Then on a lighter note, like to announce that u this week uh the UDO girls basketball team beat Pueblo the Soul Girls and won championship. So, congratulations to them. And then last night, the Pueblo boys ended up winning the championship over the Isaac Middle School, uh, which was really great. And the thing, the reason I bring it up is because the sportsmanship that came out after the games, both of them, girls and boys, I think were very significant. So, I was very proud of our kids, you know, doing what they've done, going out there, being competitive, and at the end of the the game shook hands and went on the
004way. So, with that, Madam President, that concludes my report. Thank you. Next is Miss Ernnandez. I have no report. Um, just a comment. Just welcome everybody here this afternoon. Thank you. Next is Mr. Santa Cruz. Thank you. Just want to welcome everybody here. Uh, I guess we have to get ready for summer. It's coming a little bit quicker than I wanted to, but it is what it is. So, thank you. Hey, Miss Guzman's not here and exist myself. I also want to welcome everybody for being here. Um, I just want to say something. I know that in our consent agenda, we have an administrator that's uh no longer going to be with us. So, Mr. Lant, you have served the Isaac school district for 12 years. He has served in multiple capacity in teaching and
005learning department, helping us move forward in our district goals and increase the achievement of students. He has demonstrated commitment of students, families, and staff. This year is one of the most challenging periods in adjustment for our district. He stepped up into a demanding role and continue to demonstrate his commitment to our district and strong outcomes for our students. I want to thank you personally for your leadership. He was also my son's teacher and I thank him that he stepped up into this role. I appreciate for you being part of this district and committed to us our students. So, thank you very much for being part of of our district family. Thank you for everything. Okay, and that's my end of my report. Next is uh Dr. Lamesa, superintendent update. Madame President, members of the board,
006the ISA community, good evening. Um earlier this month, a after school tutoring launched across districtwide, providing students with meaningful opportunities for additional academic support. In this year of transition and restructuring, this initiative represents more than extended learning time. It reflects our commitment to rebuilding instructional systems that are sustainable and student centered. It has been encouraging to see strong student attendance and engagement along the dedication of our staff who are extending their impact beyond their regular school day. Their commitment speaks to the resilience and shared belief that every student can achieve at high levels. We continue together as a district to move forward long-term uh and with sustainable practices. This strategic investment of time and resources strengthens our academic foundation and reinforces our focus on growth, stability, and lasting student success. This week, the heart of
007a also held the resource day. This event brought together community partners to provide families with access to various community services and educational support information. The resources they are not only ways in which families connect with critical resources but also reinforce the strong partnership between our district and the broader community. We remain grateful for our community organizations for their collaboration and the shared dedication to our scholars. Also last week, the superintendent advisory council participated in an exciting uh civic engagement opportunity connected to historians Kim Burn's latest documentary uh the American Revolution which is released on PBS. During the civic summit, which they attended last month, PBS Learning Media conducted a uh youth media challenge, inviting students to create short videos responding to critical civics questions inspired by this documentary. Our students accepted that challenge and their
008videos will be published on the PBS uh the American Revolution Youth Media Challenge Project where students across the country can view and learn from their work. This experience will provide our students with a meaningful opportunity to develop informed perspectives, creatively connect their ideas and strengthen their collaboration and public speaking skills. It is a power powerful example of how we are preparing our students not only academically but also engaging in thought um in thoughtful uh participation as uh as a democratic uh process. I'm proud of that leadership and their civic engagement and that they continue to demonstrate and once they complete those videos, I uh promise I'll bring them um as part of these uh updates. Uh on Tuesday of this week, we held our parent advisory council meeting where families engaged in meaningful dialogue with
009uh our district leadership. The focus of the session this time around was gathering input and feedback on the revision of policy KB, parent involvement in education. Parents provided thoughtful suggestions on the policy language, how it can be clearly communicated, and most effective ways to ensure families have access to and understand that policy. They also shared important perspectives on how we can strengthen the homeschool partnership in practical and meaningful ways. Their voice continues to guide our efforts to create an inclusive environment where families feel informed, empowered, and connected with their child's uh education. On the next parent advisory council meeting, we will um be looking at the revisions for the homeschool compact and that will be April 27th, our last uh pack meeting for the year. That madame president concludes my report. Thank you. Next is
010new business information discussion and action. First item is auditor general January 26 Rick's analysis presentation. Mr. Jim Servin, chief financial officer information and discussion. Mr. Servin, Madame President, doc Dr. Mesa LMA U members of the board we are honored to have the auditor general's office here to discuss our u at risk situation and um you have obviously talked about it several meetings the the uh we've attended hearings we've attended all kinds of meetings and and discussing it and now Amanda will give you okay hi there good evening Evening board members. Uh my name is Megan Hager. I'm director of the accountability services division at the Arizona Auditor General's office. And with me today, as Mr. Serbin said, is Amanda Wyn um who leads our financial risk analysis. Um thank you for providing time in your
011meeting today so that we can come to discuss uh the most recent year's results of our financial risk analysis. Um, as you may recall, we presented to your board the last two years as the district has been in the highest risk group um, since the first year of our report in December 2020. Um, over that time frame, the district has consistently been identified as high risk for the weighted student count budget limit reserves um, and financial position measures. But then that risk increased when the district's overspending was discovered and Mr. Kenny was report appointed as the district's receiver um, last January. Um, so today we're going to discuss what changes we've seen in the district's data since the last year. Um, while we've started to see some results from those actions that uh, Mr. Kenny
012and and Mr. Servin have taken, um, we're we saw some still increased risk in the district's measures this year as a result of some prior year misreporting that they discovered and then had to correct which resulted in some of that increases in the overspending, which we'll discuss in more detail when we get to those specific measures. So, as a reminder, just a little background again on what the analysis is. Um, our financial risk analysis, uh, we gather year round the most current data available for 10 financial risk measures, uh, to identify the districts at the highest risk of not being able to operate within their budget reserves or cash constraints. Uh, the purpose of the analysis to provide district decision makers and stakeholders like yourselves with information to use in their budget and finance related
013decisions. Uh so that analysis is a year- round process. We gather the newest data as it's available and we have met uh with Mr. Serbin and Mr. Kenny a few times throughout the last year to discuss the new data results and actions they're taking to address those risks. uh just most recently in December, we met with them to discuss the very latest results, which is what we're seeing in the report today. And they completed our uh corrective action plan template um which describes the actions they're taking or plan to take to continue to address those risk areas. Uh so we will walk through each of the measure results and at the end we'll have time to answer any questions that you may have. So, with that, I'm going to turn it over to Amanda, and
014we'll just switch back and forth a few times as we talk through the different parts of the report. Okay. So, I know we've been here before and walked through the website, so we'll try to make it really quick, but I wanted to point out what's new on our uh the report this year. We did uh update this overview here to kind of give you the key takeaways right here at the very beginning. um including that the increase in the number of highest risk and approaching highest risk districts and as well as um seeing an increase in each of the individual measures. And we'll look at a table with that related to that. And then continuing to see more um districts with higher risk because of student counts declining uh which is affecting their budget limits.
015So those are the key takeaways here. Underneath that, like previous years, this is the uh list of the highest risk districts and the approaching highest risk districts, as well as the map that kind of shows you where they're located. Below that, we have a new table that we've included to show the change between last year's report and this year's report on each of the individual measures. And as you can see on seven of the 10 measures, there's been an increase in the number of high-risk. We also include on this front page why we monitor financial risk to help you give an idea to help you to know why we do this analysis and also a little blurb about how to determine if your district's at a risk and then creating a financial risk action plan,
016why that's important as your district has done that. We then have a brief um explanation of each of the measures and then this is that action plan um and guidance that was given to Mr. Kenny and Mr. Serbin to fill out. As Megan said, it's a year- round process. We'll continue to contact uh the district throughout the year. And then if you're a data person, we do have the data file down at the bottom of the where you can see all the data for all of uh the report in an Excel format. Okay. So next I just want to briefly show you the state results page once I get up there. So we have multiple tabs up here. We also have the about tab that tells you a little bit more about our analysis and
017some of the changes that were made in this year's report, particularly about student count, but we'll go over that in more detail. You also have the definition of all the measures as well as state results and district results. So, first we'll hit state results maybe. There we go. All right. So, this just want to highlight this for you um that you can get some statewide results. There's a table of all the measures as well as a filterable table down below. All of these are filterable by um in here either by statewide, by county, by legislative district. So, if you're curious about what's just going on in Maricopa County, you can um filter on that. All right. Now, we're going to go to your district results. So, there's multiple ways you can get to that. You
018can either type it in here or we do have the list here. Um all right. So here is your page for um Isaac Elementary District. This is like in the previous years. You can see that you are indicated as among the highest risk districts. Um that's at the very top of the page here. And then underneath that we have a narrative summary of the risks that are identified for the district and bringing them all together in a way that's hopefully understandable. Um once you look at the actual measure information that this puts it kind of all together in a narrative summary. Each of the measures has uh has an analysis and data piece which we'll go over in detail. But I also want to point to that you have a district action plan here. This
019is the one submitted um by Mr. Kenny and Mr. Serbin uh that has the indicated causes, the mitigating actions and the estimated financial impact uh for each of the high-risisk measures. Right. Like I said, there is a link to uh at the top for measures page, but we also have this link here to the measures page if you want to know more details about what each of them are telling you, what analysis we do, and the data source for each of the items. Okay, so Isaac has seven high-risisk measures that's leading to your overall highest risk designation. Uh now we're going to go into each uh measure in detail. I'll start with the weighted student count. So this shows a a change in the district's group a weighted student count over a one year and
020fouryear period. This is as of the December 2025 data. We obtained these weighted student counts from the Arizona Department of Education reports. Student student count decreases generally result in decreases in available revenues. So if a district is experiencing continued substantial student count decreases and does not adjust its spending accordingly, it could exceed a statutory prescribed budget limit. So on this measure, we look at both a one and four-year change because both long-term declines and a single year substantial decrease can have a major effect on the district's budget. So we assign varying risk points for both the one-year and four-year change percentages and then we apply a multiplier to the four-year decline risk points for districts with consecutive year-over-year declines. This helps capture the risk associated with persistent downward trends in the weighted student counts. So
021districts can receive up to five risk points for this measure and districts with three or more risk points are considered high risk for this measure. So if you want to see the specific risk thresholds and do your own math, you can go over to the measures page and there's a table that helps you calculate the actual risk points. um as well as there's an example calculation if you want to see how that multiplier comes into play, but I'll try to describe it for you in our data here. So, your district um is a medium-sized district and has a one-year decline of the 14.08%. So, for that, we have assigned the max of one risk point for the one-year decline. the 4-year decline uh was the negative 18.33% and that results in getting the max of
022the two risk points for the 4-year decline. And then if we look at the data tab here, you can see what's happening with the actual numbers as far as the student counts. So the way student count has declined three years over the last five years. There's just a little blip up there, but for the most part it's been declining. Um, so the district received a multiplier of one and a half points on that. So in total, the district received four risk points of the max of five for this measure. Therefore, it's above that three point high- risk threshold. So they're high risk for this measure. Uh, as Megan mentioned, for the previous six years of our report, Isaac student counts decreased by an average have continued to decrease and has been high risk for for
023your district, but they it's been a decrease by an average about 5% each year. Um, and so they were you were high risk for student counts in all those years. So, the way student counter is really important because it's one of the more predictive measures in our analysis. District boards and management really need to monitor this information to understand when you need to adjust spending based on the resources you have available. There are some districts that use some other uh ways to determine how to what's happening with their students like demographers or surveys or different plans um as far as the enrollment to and then looking at that to drive spending decisions in the future. So for current year information though you can monitor ADE u monthly issued student count reports and they also issue
024funding reports related to those and monitoring those throughout the year and then at the end of um after the end of the fiscal year then AD does the recalculated accounts that gets pulled into your budget. So next Megan will go over the next two measures. Thank you. Okay, we're going to talk about the next two measures together. Um, these are both the operating and the capital budget limit reserve measures. Um, so just a little bit of background on what these measures are. Um, every school district in Arizona annually adopts a statutoily prescribed budget limit for its maintenance and operation and unrestricted capital outlay fund. Um, and those are the two main funds that we're looking at for both of these measures. for for most districts, those are the the main operating and capital funds that
025they're going to be using. Um, at the end of each fiscal year, any unspent budget capacity that a district has can be identified as reserve and it's carried forward in the future to the future years. So, it's added into the district's budget limit calculation for the next year when you have a reserve left at the end of the year. um a negative amount indicates that the district overspend its budget budget and then the next year's budget limit is then reduced by that overspending amount. So the way we look at these two measures is we look to see how that reserve amount is changing over time. Um a negative indicates the district is using up its reserves which is identified as a risk because those reserves are really one-time monies. Um, and it's so it's showing
026that the district's spending may not be supportable on a long-term basis um if it's continually dipping into those reserve amounts. Um, so your district is at risk for this. Whoops. Thought I could pick that up, but I can't. Um, there we go. So, your district's risk in both of these measures is kind of twofold. It's related to the fact that it has obviously declined over the last four years, but also because of the overspending that has occurred the last two years in the operating fund and the last three years in the unrestricted capital outlay fund. Um, so this is part of what I was referring to in my introduction that we saw some changes in these amounts for the prior years from what was reported last year and that was the result of some errors
027in prior year financial reporting that Mr. Serburn was able to identify and then correct through revising past year's annual financial reports um and budgets. So for the operating fund um last year I believe the district's overspending amount was somewhere around 3 million and so that increased to 5.6 million this year which then basically carried over into the next year and caused that overspending again which is now at 1.7 million. So that 1.7 million now gets carried to this current year in the fiscal year 26 budget limit amount that's um shown there reflects that reduction. So that's a reduced spending amount that the district has in this current year to cover the prior year's overspending. So for both of these measures um we've added a few pieces of data to these cards to just help provide
028some more context around the dis each district's um situation. We've provided the it used to just be the reserve amount that we showed because that's what we're analyzing, but we now show the actual budget limit and the total spending for each year just to help you see um how both of those amounts are changing over time as well in relation to what the reserve is. Um so one in particular thing we like to point out to districts too is we've included that current year budget limit so you can see how it's compared to your prior year spending. So like for example here we can see that the district does have to reduce its spending in this current year which I believe has happened some from some of the actions described in the district's plan um
029to stay within this current year's budget limit. Now the capital fund is um has the overspending amount has worsened there as well and and actually the fiscical year 23 overspending is a new reporting that wasn't something that was reflected in last year's report. Um so again identifying those additional overspending amounts then reflected into the most recent year and that negative for the budget limit there shows that the district has no no spending capacity essentially in that unrestricted capital outlay fund. So that'll take some time um as the district's annual capital allocation um is not as much as what that overspending amount is. So, it's going to take several years to basically um clean out that overspending amount as the district gains capacity over time. It'll slowly um decrease. Okay. Um, similar to the the reports
030that Amanda talked about for weighted student count, the Department of Education also provides monthly budget reports for the current year. Since as those weighted student counts change throughout the year, the current year's budget limit changes along with it up through the hundth day. And then at the end when they do their recalculation, that's when the final budget limit is identified sometime in July. So, those are things that you can be monitoring throughout the year to just get an understanding of where you're at and how that's changing um as your student counts change. Amanda is going to come back up for the next two measures or the next three, I'm sorry. All right. So, I'm going to go over these next three measures. They are all looking at the same data but in different ways. Um,
031so the two measures that Megan was just talking about were your budget limit reserve measures. So now we're going to look at which which is your district uh legally allowed to spend in your two main funds, your maintenance and operation and your unrestricted capital outlay funds. So these next three measures focus more on your general funds financial position and that analyze components of the district's primary operating funds revenues, expenditures, and ending balances to identify potential risk related to the general fund resources. Yeah. So, so to help understand that a little bit more, this is more like the cash amount or the fund balance, what's left over in your actual um cash amounts where your budget is your allowability to spend. So, they may not always match um especially in in um with the different things
032that have happened with budget limit and cash. Um so, I'll kind of walk through each of them and we'll talk about what um what they look like and what that means for you. Um the general fund is primarily your M fund, but it can include some other minor funds um that can be used for general use. It's based on what your auditors uh combine together in your financial statements as your general fund based on the definition of that in the accounting procedures. Um so the data for this uh these three are uh from the 24 audited financial statements and then the other one is from the 25 unodudited annual financial report because it's the most recent data that we have. Um, the important thing on these two measures is they you can't look at them
033right next to each other um because they're two different data sources, but they they can be um hopefully fairly close if your AFR and your uh audit financial statements are the similar numbers. All right. So that annual financial report, the unodudited one is the one that goes into AD uh each year in October. So the first financial position measure, this general fund operating reserve ratio um shows the percent of the general fund monies held in reserve for future spending or your fund balance and it compares it to the total spending from the prior year. So a negative operating reserve ratio indicates a negative fund balance which means the district must use monies received in the following year to cover prior year spending. So all districts with a negative operating reserve ratio um in either of
034the most recent two years were considered high risk for this measure. So you can see in 24 you're negative but in 25 you're positive. Um that 24 operating reserve ratio is reflective of the district's 22 million general fund deficit. So if we look at the data, you'll see that $22 million uh deficit in your general fund. And then that's why this is this measure is high risk for you. Um so you can see by the data here that the district was able to bring that back to a positive balance in fiscal year 25 largely as a result of the district's lease lease back agreement with another school district uh which provided 25 million in cash resources. So, however, we'll see in the next measure, the district um did reduce the fiscal year 25 spending to
035stay well below the this year's revenues. Um that also helped with this improvement. So, the next financial measure is our general fund operating margin ratio. This one here in the middle. And this shows the percent of district general fund res revenues not spent in the year received for each of the most recent two years. So a negative ratio indicates that the district spent more money than it received for the year and spent some monies from his previous year's reserves. While we could consider all districts with negative operating margin and less than um as high risk for this. We do look to see if there's a a general fund reserve um of more than two months at the end of the fiscal year since a district that has um so if you have less than the
036two months, you have less reserves and you put yourself at higher financial risk each time you spend more than the revenues you bring in. So the operating budget overspending also resulted in general fund expenditures exceeding revenues. um in fiscal year 24. So this this percentage here um and that 22 million uh deficit over here but in 2025 so when we look at the data so you can see here that there was more spending than revenues in 24 but if you can see in 25 there's less expenditures than the revenue uh that you collected resulting in a positive operating margin. So that that did help with moving some of the other measures because you were able to keep underneath the uh revenues you brought in and build up a little bit of cash and fund balance.
037All right. So the next one is change in fund balance. um which shows you the one-year percentage change for each of the most recent two years in the general fund balance. So declining fund balances or negative fund balance in the most recent year indicate higher financial risk as less resources remain available for current and future needs. So on this measure the district's general fund balance decreased by over 100% from fiscal year 23 to 24. So, but it shows that from 2024 to 2025, the fund balance increased. Uh, but since it's greater than the 25% in this year, that's why this is high risk. I want to look at the data here to show you what's going on. So, even though that uh so you can see that you went from a negative 20.4 4 million
038to change in fund balance to now a 7.5 million. So although the district's fiscical year 25 general fund ending balance was approximately 3 million and its total fund balance for all funds was positive, the district did have a deficit cash balance of 30.8 million in other funds as of June 30th, 2025. Um including that a 25.8 8 million cash deficit in the unrestricted capital outlay fund which is related to that dis to your prior year capital budget limit overspending. Um the district still must repay that 25 million lease uh lease back agreement with interest to the other school district and its outstanding deficit and take work on those outstanding deficit cash balances. Um, the agreement provides Isaac only five years to pay back the full 25 million with almost 20 million due in the fifth
039and final year. So, that your action plan does describe that you intend to use some of the $10 million of bond proceeds that were recently approved and to sell excess property and land to meet those obligations. So, the next measure we're going to talk about is actually not a high-risisk indicator for the district, but I just want to take a little bit of time to describe it um and what the information means and how you can still consider it going forward. Um, so what this is looking at, it's called, we call it the capital monies redirected to operations measure. And it's looking at how the district chooses to allocate the two main components of the budget, the statutory budget limit calculation, which is um monies intended for operating and monies intended for capital purchases is
040really how it's broken out in the formula. Uh, but districts have the ability and option to transfer those monies in between the two funds however they see fit. Um, but we still look at this measure to see how often a district is relying on using its capital monies to help support its operational spending to see if that is an indicator that perhaps the district is delaying operational spending cuts that it may need to make down the road or if it's putting itself into a position where it may not be able to make certain capital purchases it needs because it's not building up enough reserve in that capital fund. So, that's kind of a a nutshell of what we look at that measure for. Um the district is not currently redirecting any of its capital monies
041to operations. That practice was stopped in fiscal year 25. Um but prior to that, the district was on a fairly regular pattern of of reallocating a portion of its capital spending um to its operations. So just something to keep in mind going forward of not that it's not something that's not allowed, but just considering if it's something that you're needing to see yourself rely on of what that can be an indicator of. So the next two measures are not something that apply to the district currently. The district is too small to receive a or too large, I'm sorry, to receive the small school adjustment and its property tax rate is not currently frozen. However, for some time during those uh first five years, I believe it was that the district was in high risk. its
042frozen property tax rate was a component of the risk we saw at that time as it as the district had um a frozen property tax rate for several years which contributed to an unfunded budget limit reserve it had over that time frame. So um but that's not occurring anymore. And then the last measure that we have is we just look to see if a district is in receiverhip. So the receiver is in place to help the district get out of the financial situation that it's in. However, it is just an inherent indicator of risk because of the previous actions and overspending that occurred leading to the receiver being appointed is really how we look at it and why we look at it in that way. The last piece of information we have on here is
043uh something we put there for all districts. We identify the less common revenues that every district receives. These are things that are not available to all districts in the state. Um we just put it there for some context so that you can understand as you're reviewing the measures some different revenues that you have that maybe not all districts do. Um so we can see the district received about $4.9 million in desegregation revenues and then there is the voter approved budget override of almost the same amount. Okay. Um so then just to kind of wrap up and conclude our presentation um the I would say the two main things uh are really kind of three main things to focus on um is really the district's student count and then both at operating in capital budget limit
044reserve measures. Those are going to be I would imagine your biggest focus um over the next several years as uh Mr. Kenny and Mr. Serban helped to identify actions to um and pay the debt correct and paying off the debt. Um so really all of these measures that we're looking at are going to be very important ones for you um in looking to see what actions uh you all are able to put in place to address those. That's all we have for you. Um does anyone have any questions? Thank you. Does the board have any questions? Yeah, Madam President, thank you for the presentation again. It's always helpful for us to have a a clear understanding and then using the comparative data helps us to really be able to see where we're at and where
045we've been and I think more importantly where we're going, you know, those things. Just one question because I I I may have asked this question last time, but on the weighted student count, um, we've always indicated on here that's group A. Is there another group or is this just kind of the standard, you know, language that we have? Do do you want me Yes, there's there there are two different weights that can be applied to student counts. The group A is a main weight that's applied that all districts receive. It's a standard weight that's based on the location. Um so whether you're isolated or not isolated and then on the size of the district depends uh determines what the group A weight is. That's applied to all students for all districts to give just a
046little bump up to recognize the different needs of all students that districts have. And then there's also group B weights. So those are your specific weights that are tied to specific students for the specialized needs that they may have. So that's more your special education type funding. We don't consider those group B weights because they can just vary so much um across districts and spending that goes along with that is going to vary as well. So we just focus on that group A weight because it is the closest thing that's tied to your funding. So not to be confused, this is not our average daily membership number. Correct. that is a separate number. Um we do have uh a number up in your demographic information that gets closer at your students attending. So that would
047be the number of students within each of your schools and and is that the one that we're looking at a percentage of you know declining is that on the ADM summary you're talking about your average daily that's starts and then you get add that will always be higher than your membership the group a weighted yes there's different weights that are put on there so one student counted on the average daily membership may equate to 1 um average uh weight and stuff there so But it's not all that's not there's a whole formula. Sure. And I can show you one. Yeah. Th this is essentially the ADM with a group A weight to apply applied to it. So it's always going to be higher as as Mr. Kenny said than the ADM. Okay. Yeah. So Madame
048President for and the the audience, you know, I'm always looking at ADM, you know, because you can put the weights on there, but if you don't have the same ADMs, it doesn't matter how much weight you put on them because it still has a direct u impact. And if you have a declining number of uh average daily membership, then the waste doesn't matter because that's the number of dollars that we get, you know, for our budgets um as we're moving forward. That's what that's what the base is anyways. ADM the way Yeah. on the weight. But I mean, okay. But the ADM is kind of the baseline and then you add on top, right? Because these group A weights are applied to all students, they're going to follow the same the ADM and the group
049A weighted will follow the same trend. So you could look at you can look at either really for for those purposes. Right. But we're paying on the weight but the trends will be okay. All right. Thank you. That's all. Madam President, have questions? I have questions. So, I noticed on your um the plan it was done on January 8th, 2026. When's the next one that that we have to do? How often do you do this um risk action plan? So, we'll continue to meet with Mr. Serbin and Mr. Kenny throughout the year to see how they are how the district is doing really at meeting those um actions that they've outlined in there because some of them are actions that have been taken already. some were planned actions, but we'll continue to meet throughout the
050year as new data comes in, usually around about three times a year. Um, we'll reach out as new data comes in. Um, we will require the new action plan around the same time the next year um before our report issuance goes out because that's when we'll have the final data for what we'll be reporting in the final year. Um, at that time we can talk about what they what they feel is the best way to update that information, whether it's kind of reporting on progress really of what those actions have have been done in the last year or if there's new actions that they're going to be identifying to put in there as well. Weren't they recently here or that's that's the the the out of about a year ago. I I think we got
051our presentations going a little bit later in the year last time. It was maybe more March or April. So, I noticed that every district is losing students and they're closing schools. I mean, this is something that everybody's suffering and we've been like this since 2020. And as we go further in and what's happening with ICE and everything that's going on, I mean, it doesn't seem like it's going to get any better. are more districts. I mean, I know you have different categories, but I mean, those things are out of our control, you know, when our families are scared or come out, our families and they leave or they go to other places. I mean, is this always going to be one factor part of our risk analysis? Is, you know, I mean, we could only
052do so much, bring affordable housing. Uh, but if if you want to step in, you can, but I can after either way. because warning signature. So always by looking at student enrollment that's not going to I mean if you're you have a declining student enrollment and every other item there is is blue. I would be surprised if the auditor general come back and say you're at risk. It's because the other measures are going to say you are taking action just for those things. So, it's just going to be a reminder. Hey, keep an eye on that because you might have to make those adjustments again. Yeah. No, I think that was a great way to put it. Um, so I I did come over to the overview page just kind of show we absolutely saw
053an increase in risk across the board, but not every district is in the highest risk and not every district is at risk for every measure. So, for 2026, there's 69 districts that are at high risk for just the change in weighted student count measure alone. Uh but then you'll can see can see there's some differences in those other measures as well. Um I would describe it in the same way that this is to help make you aware of what is happening. Um so there there may be some things like you've described with the student counts that you might not have as much control over but a lot of those other measures are all the financial measures that follow that student count. So what's the district doing with its declining enrollment with its declining budget and
054revenues that come along with that? And so this is really to help highlight those things before uh it gets to a point where the overspending or the cash deficits occur. And then the last questions that I have because um how often do you send us emails because I know in the past like I said we used to get emails and we would forward them to the person that needed to take care of it and we thought that was take be it was take being taken care of. So in the future when you send us reports, how how often do you do you send those to us? Uh it's going to vary depending on when we have new information. So I think you are maybe referring to both the non-compliance um that the district is in
055as well as the financial risk. Um for the financial risk, we tend to just communicate with the business manager and superintendent throughout the year until the final data is available. And then at that point is when we notify the board um so that you can see our summary and the action plan before it's published on our site. We do send that email to you all shortly before we publish this. For non-compliance, it's once we have new information. So the district's fiscal year 2025 audit is due by the end of March. Um, once we receive that, we will review it, look to see if the district is still in non-compliance, and send an update to you all with the list of deficiencies that your auditors identified for that year. And then I know when the district
056first came into receiverhip, uh, we discussed that, you know, they needed to focus more on the financials at first, but a lot of that came along with that, improving some internal controls over the financial processes. So hopefully we'll be able to see some of those things. If not in this audit, in future audits, um, and even in between, if the district feels like it's ready, that it has a good majority of those controls in place, we could come out and do a status review to determine if things have been corrected. Okay. And then do you have, cuz we're human, everybody makes mistakes. Yeah. So do you have like multiple people looking at these reports? I mean, is this just one person in particular that are looking at these findings from our office? Or your office?
057Uh, no. We have multiple people that that review them. Um, and then it's it's mostly based on what your independent auditors are finding and seeing as they come out, complete your financial audit. They conduct some test work on internal controls to find what's happening, what procedures and processes are in place or not in place or maybe are in place, but aren't always followed. But we have multiple levels of review through our office to get an understanding of what's happening. Sometimes have some conversations with those auditors to get a better understanding if if we feel that's necessary and then we talk to the district and work with them to make sure they understand what's needed to correct it um going forward. And then you mentioned the grants. Is that also being is that also part of
058you monitoring and checking all of our grants? No, that's more Department of Education overseas grants since those are federal revenues. Uh they have a grants management division who the district also has to do reporting to. They do um completion reports when grants are finished to identify what they've been spent on and then they have their own process for monitoring and following up with the district on those. Okay, that's all I have. Thank you very much for your time. Thank you. You're welcome. Thank you for having us. Okay, next we have adoption of second reading and policy section G and possible adoption of policy book section G. Dr. Dr. Le Mesma interim superintendent information discussion and action. Is there a motion? Moved. Is there a second? Second. Dr. Mesma. Madame President, members of the board, Isaac
059community, for this agenda item, I bring the second reading of the partial section for section G titled personnel. This is a long section that we have chunked into three parts. Today we're doing uh part two. Uh the second reading encompasses the revisions outlined during the first reading and includes the recommended language from legal counsel uh that is now being presented to you followed by discussion and possible approval for the second reading. Policies with clarifying language and updates include GBK, policy GB KR, policy GB KKE C, policy GB K D, policy GB K E, policy G CBA, policy G CGB R, policy GCD, and policy G DB. Those that were legally reviewed and have recommendation and updates include [clears throat] policy GB, GCB, policy G, CQF, policy GDF, and policy GB GDR. Policies updated to include
060legal references or web link uh revisions include policy GCB, policy GCBA, policy GBF, policy G CE D, policy G C E, and policy G CDE E. All other policies in this subsection have no changes. And that concludes the second reading of policy section G. Thank you. Is there any questions from the vote from the board? Okay. If not, call for the vote. Okay, motion carries. Next, adoption of first reading of policy book section IHP through IMHR Dr. Lil Liy Mesalemma interrup superintendent information discussion and action. Is there a motion? Is there a second? Second. Dr. Messma. Madame President, members of the Bores Isaac community, section I uh instructional programs is another one of our longest sections and we have split the reading of this section into two parts. Tonight we bring to you the first
061reading of the last part of this policy section. As it is the case for all previous first reads, I will present the summary of all changes followed up by the board's discussion in our request to approve the first read for this particular section. Policy IHB maintains the current policy and there are no changes. Policy IHBR maintains the current regulation. Policy IHB maintains the current exhibit. Policy IHBA maintains the current policy, no changes. Policy IHBA maintains the current regulation. Policy IHBA RB maintains the current regulation. Policy IHBAe maintains the current exhibit. Policy IHBB maintains the current policy, no change. Policy IHBCA maintains the current policy, no change. Policy IHBC adopts changes to the model policy language. Policy IHBD maintains the current policy with no changes. Policy IHBDR maintains the current regulation. Policy IHBDA maintains the current
062exhibit. Policy IHB maintains the current exhibit. Policy IHBE maintains the current policy. Policy IHBER maintains the current regulation. Policy IHBA maintains the current exhibit. Policy IHB EB maintains the current exhibit. Policy IHBF maintains the current policy. Policy IHBD maintains the current policy. Policy IHCA adopts the recommendations from the model policy and maintains all previously adopted language. Policy III maintains the current policy. Policy IIB changes the ratios to match the current handbook and maintains all other previously adopted language. Policy J maintains current policy and exclude references to high school as is as it is not applicable. Policy JR maintains the current regulation. Policy JJ removes the references to high school, adds the public review section and adopts updates to the legal references. Policy JJR maintains the current regulation. Policy JL adopts the recommendation from the model
063policy and adopts the updates to the legal references. Policy JLR accepts the recommendation from the model policy and maintains all other previously adopted language. Policy JM maintains the current policy. Policy JNC adopts the recommendations from the model policy and adopts updates to the legal references. Policy JND maintains the current policy. Policy JND maintains the current regulation. Policy JN DB adopts the recommended language from the model policy. adopts the updates to legal references and adopts uh headings with definitions. Policy JN DBR adopts the recommended language from the model policy. Policy JN DBE maintains the current exhibit. Policy JN DBA maintains the current policy. Policy I JA maintains the current policy. Policy J A R maintains the current regulation. Policy J O B maintains the current policy. Policy JC maintains the current policy. Policy I KA maintains
064current policy. Policy IK maintains the current regulation. Policy IKAB maintains the current policy. Policy IKR maintains the current regulation. Policy Ika maintains the current policy. Policy IKB maintains the current policy. Policy IKR maintains the current regulation. Policy ID, sorry, policy I KD maintains the current policy. Policy Ike maintains the current policy. Policy Ike A adopts the recommendation from the model policy and maintains all other previously adopted language. Policy Ike Kerb adopts the recommendation from the policy and maintains all other previously adopted language. Policy Ike EA maintains the current exhibit. Policy Ike EB maintains the current exhibit. Policy Ikea maintains the current policy. Policy Ike R maintains the current regulation. Policy Ike EB maintains the current policy. Policy IKFB keeps the previously adopted language and not adopt section CSF as it is not applicable. Policy IL
065maintains the current policy. Policy ILB maintains the current policy. Policy ILC maintains the current policy. Policy IL maintains the current policy. Policy IMA maintains the current policy. Policy IM R maintains the current regulation. Policy IMB adopts recommended language from the model policy. Policy IMD adopts recommended language from the model policy. Policy IMG adopts recommended language from model policy. Adopts updates to legal references and adds paragraph about ADA. Policy IMGR adopts recommended language from the model policy. Policy IMH maintains current policy and policy IMHR maintains the current regulation with no change. And that concludes the first reading of this section of policy book. Does the board have any questions? Dr. Lily, I I think this is important and probably your your staff is aware of it. I truly believe in customer service as as a parent
066myself even though my kids are big but that's the first thing as a parent when you go into a school we need to make sure that we treat our parents with respect and give them that courtesy and I'm always asking for newsletters I'm always asking how are we communicating how are we doing customer service something that we also need to do that our information that we go into the office is always accurate and not updated I mean it's always updated policy IHBDR are I don't know if you guys are aware of it. I was reading it. It's pretty much everything that I have said of the stuff that we need to do as as providing that to our parents. It talks about talks about district level and involvement compact. I I suggest that that if
067you haven't read this policy, it's how we have those high expectation and making sure that we're doing this and making sure and that's another way that we talked about to bring enrollment. Another reason that we lose students is because we don't have good customer service. So, this is something that that was brought to my attention just by seeing the duties of this principal, the duties of the parent, the duties of us, and we need to make sure that um you know that we are pretty much doing this this policy. It's it's it's very important to have good customer service to our parents and everybody. But, you know, that's that's the first thing. So everything that we do as a board as you know it functions is we go by policies and procedures. So I want
068to make sure and I know Marcela you do an amazing job with our parents. So I always get very good feedback. So thank you very much. Oh besides that I brought you something too. So any anything else? Okay. So call for the vote. Okay, motion carries. Next, um, do I have an a motion to approve the whole consent agenda? Okay, is there a second? Second. Okay, call for the vote. Okay, motion carries. Next, we have um call to the public. Do I have any call to the public? Madam President, this evening we have no request to address the governing board. Okay. Um so next we have information um our enrollment our sum of ADM enrollments 4564 average daily membership 38 3875.97 average daily attendance 3832.39 and enrollment 434 our calendar spring break offices are closed
069March 9th through the through the 13th and our next governing board meeting will be held March 19th here at the district office and I don't hear any objections. Meeting adjourned. Thank you.