001Please, now that you redid everything, got it. All right, welcome to the special board meeting of the Escanido Union High School District on June 10th, 2025. I call it to order. And are there any public comments regarding close session items? Very good. We are adjourned until we come back at 6 o'clock. And my mic's now on. And so then we're going to establish a quorum. So it's short tonight. So David Vincent, are you here? Yes, I'm here. Okay. And Bill Durnney here. Ryan Williams present. Bob Weller here. Right. We'll move on to the pledge of allegiance led by Ryan Williams. Ready? Begin. Pledge of Al. We're now going to move on to item C4, report of action taken in closed session by David Vincent. There was no action taken during close session. All right. Item
002number five. Do I hand that to you, Mr. Superintendent, or just directly to M? Okay. Uh, right now we'll have a presentation on the local control accountability plan led by Dr. Martin Casus. check, check, check. All right, we are live. Okay, thank you, Superintendent Peterson, President Weller, members of the school board, members of the community uh listening in. Uh today uh we are going to begin with a brief summary of our stakeholder engagement process. Then we're going to provide a summary of the actions and services that our educational partners are suggesting by goal. Before we begin, in front of you, you should have the binder that has the entire proposed LCAP for 2526. And if you open it, uh, in the slip to your left, you'll have an acronym list because I know we go
003over a lot of acronyms. So, uh, it's a quick reference guide there. One quick question. Yes, I noticed that it's not digitally presented to the public right now. Can we get it put in for the minutes? We can. It's also been publicly posted since May 2nd on our website. And it's in its own area on the website, correct? Okay. So if anybody's listening at home, but when the minutes go out, put something in correcting people where it'll be posted for the June 17th board meeting. It will. Okay, cool. But it is currently posted that portion. Yes, that I know. Yes. Okay. So here in this slide in the next one, we're going to provide a brief overview of our stakeholder engagement process which started back in January 2025. And before we get into that, I
004just want to make a couple of notes. Please note that by law, specifically education code 52060D, 52066D and education code 47605 clearly dictates that our LCAP has to be a representation or synthesis of all stakeholder feedback cannot and should not represent the thoughts of an individual teacher, student, administrator, or any one group in particular. rather general themes identified as areas of need by all groups. Um the earlier reference ed code also notes that notes the specific template that the district must use and how the district must justify the use of funds to meet the needs of students that qualify for free and reduced lunch, foster youth and English language learners. So I just wanted to start that preamble for quick context. Okay. So, we started our process here in January. And in January, if you
005recall, we presented to the board how we did on our LCAP goals for the previous year 2324. And the reason why we did that in January because the dashboard was published in December of 2024. So, we had just gotten the information. And then in February, we gave an LCAP mid-year progress report. Uh we presented and we also provided the uh the report in hard copy of how we're doing in this actual year in 2425, halfway through the year. And then in November 24 through April 2025, we started our educational partner meetings here at this district office. And for context, that is a representation or a focus group from each school site that consists of parents, counselors, teachers, students, classified staff as well and administrators. So they all show up here. Uh and that process started
006in November. And from there we had five school site staff LCAP forums where the principal host LCAP forums for their spec specific school site. And then there was five school site parent LCAP forums where the school administration hosts parents and gets their feedback uh in particular from each school site. And then we have five student LCAP forums which our student board members facilitate at the school sites. So they go and they get feedback from student focus groups during lunch. And if you recall, we provided that actual feedback, that raw feedback in our LCAP board workshop. And then we actually send out a survey and we had 5,295 survey participants and that closed in March. And then we recently had our LCAP board workshop here where we reviewed that entire process with the board. Here's where
007we are now. Right after that, uh we started writing the draft. We had a posted draft of our LCAP on May 2nd. Just a quick question. Um is this um item number seven? Can you go back? Yes. Is this typically what you see survey? This was we had about 300 more participants in the previous year. Every year since this ed services team has been together, we've increased the participation. It's a very positive. And so where we are now, we were writing the draft. We had to post a version of our LCAP by May 2nd. As we made changes, we updated it as well on our website. Um, and we submitted a draft to the county office for compliance review on May 19th. On June 2nd, we had a meeting with the county where they gave
008us feedback and it was probably very minimal feedback on um commas, dots, uh things that we should repeat in different goals that we said in the prior goal. Uh so it was really nothing of substance, but we still nonetheless there were changes that we had to make and since then we have resubmitted to the county all those recommended revisions. So that part is done. And in the orange is where we are now. So we are presenting again to the board where we are in the process and there's a public hearing right after this presentation. Uh and then the board takes action on June 17th which would be next Tuesday. And I should mention that since we did post our LCAP draft for feedback, we have not received any till this day. Is that correct Dr.
009Ramdas? Okay. So, quick overview, and we've gone over this before. It's just a general overview of our LCAP goals. LCAP goal number one is academic achievement. Inclusive in that goal are things like graduation rate, CAT scores, 9th grade, math pass rate, nth grade ELA pass rate. Um, I think I said AP scores already, but any sort of academic indicator, it's in the LCAP. And LCAP goal number one. Uh and goal number two is how do we improve instruction and leadership so that student achievement increases. In other words, how do we improve teaching and learning so that goal number one can improve? And goal number three is how do we give all kinds of supports to our students so that they can improve academically? And that's where we pay for things like paying for every kid's
010AP exam and student laptops. Your students have all the supports they need so that they can learn. Number four, engaged parents. How can we have collaborative relationships with parents so that they can support their students at home so that they improve academically? And finally, number five, how can we ensure that we have a safe, secure campus because if kids don't feel safe, they can't learn. So that's just a brief overview. And then this next slide is a little um little graphic here that kind of gives an overview of our demographics as a district. And a couple of things I want to point out because LCAP has to be written for these student groups. Our English learner population is 22.4%. Our students that qualify for free and reduced lunch is 82.3%. That's on the bottom left
011there. and.3% foster youth and 3.2% homeless. And in particular, that number right next to it, 25,720,859, that is our LCAP budget for 2526, which is 1.1 million less than we preceived this year. So, it is a reduction. Uh, and before we get into the actions and services, I just that Dr. Ramz is going to explain. Um that 1.1 million we were able to um make up for that 1.1 million by reducing professional learning in each goal. So the goals that we just went over, goals one through five, each one of them had a budget line for professional learning. So we've reduced professional learning in each goal. And the intent there was to keep the cuts away from the classroom and away from kids. doesn't mean professional learning won't happen. It just probably won't be funded
012using LCAP funds and it will be a little bit less than it was in previous years. Um and next, uh Dr. Aana Le Per Ramirez will highlight our actions and services by goal that our educational partners chose to continue. Uh you will notice there are no new actions and services that we are funding. uh given the reduction in LCAP funds for the upcoming school year, it wouldn't be prudent for us to add anything new with the exception of an increase in funding to math tutoring, which is feedback we heard from our educational partners as well as from the board. So, I'm going to pitch it over to Dr. Paramedz. Thank you. I'm so happy to be back and present with you all tonight. Um, again, oh, sorry. I do want to remind everybody that last
013month we did have an in-depth workshop where you got to identify uh what the feedback was from our educational partners and really take a deeper look into our actions and services. So, I will give more of an overview. Uh, we do have more detailed information also in your binder towards the end of the goal. will have a lot more detail with respect to each action and service that's available within that goal in the LCAP. Okay, just for I'm tracking. So here we are goal one on the little summary sheet and then in the big book here I can track detail under goal one tab. Correct. That's all the information under goal one. Okay. Thank you. Towards the end of the goal is where we go into more detail with the services that are offered under
014this goal. Got it. Okay. Thank you. So, under goal one, we are estimating a $8.1 million expenditure. Again, looking at uh the services that are available. Um, as Dr. Cassas mentioned, we did have a 1.5 a $1.1 million reduction, but we did try to keep those reductions away from services that go directly to students. Um, most of our cuts were made in professional learning. And again, in this area, we do have some uh larger aspects or more expensive pieces, if you will, including our ELD clusters, our decreased class size. Uh those usually weigh a little heavier, which is what adds to the overall cost. In goal two, which is uh effective instruction and leadership, again, all of our actions and services are staying the same. However, we did have a reduction in the professional learning
015that we we offer our teachers and uh our current estimated expenditures will be 5.1 million. A quick question. So, if I wanted to find the 8 million or the 5 million, is that in the when you do the budget, are you going to point out exactly where that is or general areas like you could be like, "Yeah, it's over in section four or five." I'm I won't be highlighting the specifics of the ELCAP um because it's all going to fall under different either materials, supplies or services. Um so I'll be covering more broad aspects like that. This is where you'll get the detail um on the exact services or um humans or professional learning that are going to be paid for by the LCAP. Okay. Cuz I'm still two and a half years in and
016it's still No, I get it. It's a confusing document. My apologies. I try to make it as you you are doing fine. You're totally doing fine. I'm just kind of each time I get this presentation, I'm like, "Oh, this is a question." So, thank you for what you're doing. No worries. No worries. Uh goal three, again, we have a $9.6 million uh estimated expenditure uh based on the board and educational partner feedback. Uh we did increase the spending in mass support and tutoring. Uh again based on the information that we received and the feedback from our students, parents, community and board members. Goal four engaged parents. Not to be redundant, but our actions and services didn't change. Um, we're still really focusing on our bilingual parent liaison who really help bridge the relationship between school
017and home uh and all of the other services that we provide our parents under this goal with uh 562,000 expected expenditure. And finally, we have our goal five. Uh here is where most of our goal our tier 2 and three supports live. Uh with a $2.2 $2 million expected uh expenditure. we cover our um programs that support students in alternative to suspensions and uh just additional supports necessary for them to be academically s that's the gist of mine and I just want to remind you all that we are here in our process do we have any questions can Can you go to goal two if you don't mind? Okay. So content specialist support site OSA math ELA and uh E then curriculum then I go over teacher on special assignment sitebased mathtosa then science why
018I guess I'm stuck on the STEM program so why isn't science a part of the content specialist support excuse my ignorance. It is we pay for it out of a different fund. Okay. Thank you. This is just what's I out outlined in the LCAP. Our science content specialist is paid out of a different Okay. Okay. Excuse my ignorance, but science is important to me and I just want to make sure that we have a strong supported financially STEM program 100%. And we do we do fund that every year through a nonLCAP. Okay. Thank you. Where is that funding? So that like if I were to look at the budget, you could be like, "Oh, it's over in this section." I'm going to say title four. Okay. And if you're wrong, it's okay. Or title two.
019I don't know. You look at four and it's not there, then look at two. It's going to live in title. What, John? Federal title or four page. Okay, cool. It just We get a lot of questions in the district, where's the money going? I'm like club and I don't know. So I understand and all of our sips are available online as well. So our title one dollars are transparent as well. So then I have a question or a thought or a suggestion. So on goal four engage parents. Thank you so much that you guys do have parent involvement plans. I'm assuming those are generated from the principles. Yeah. At the site level. Yes. And then on the site bilingual parent liaison, I know that we're really trying to increase our math scores, basically all CAST
020scores. And so this 562,000 like is it mostly like hourly employee making phone calls? Uh the employees here would be our bilingual parent liaison and the other services provided are usually on time cards. So things that they do after school or if they're uh within their workday um or meetings that our administrators are holding after school and whatever additional funds that we need to support that. But our only um our only two actually our district translator and our site bilingual parent liaison are the staff that are identified under this particular goal. the rest does live in time cards or contracts uh with outside resources because one of the things that I have a big desire in the coming years is that for us to sync up with the elementary district a lot more especially in
021the areas of math and incoming freshman 9th graders you know I want to have a much more targeted preparation of bringing them in and you know of course as Dr. Kasus has pointed out to us that we can't mandatorily force someone into summer school, but you know, they do I Ready and we can see their tracking all through their schools. And if we know they're three years behind grade level, I'm like, let's, you know, help the elementary district or even our district bring parents in and really beef that up. So, that was more of a thought, you know, or a goal that I think that we could try to do, you know. So one of our current practices is as as a bilingual parent liaison team, we do meet quarterly with the elementary school parent
022liaison and just keep each other a breast of what's happening and letting letting the elementary level district parent liaison uh spread the word out to their parents so that we do have that communication between the two uh districts. So, um, kind of go off of what you were saying on the community and parentbased events and offerings. Um, how do you engage the the community, parents, uh, both bilingual and straight English speaking parents? because I think it's important that we communicate especially if English isn't the first language that they're actively involved in this decision-making process because you have to make sure that they we support them and understanding what we're spending the money on and for what programs and a lot of these events are discussed at the site level but we do have our parent
023liaison go out to like the local swamp meet and sometimes they'll you know let the send information sendformationals out to families or I know we've posted out on cruising on Grand I think that's an event that happens here in Escanido that brings in a lot of community members and so we have a table so that if any parent does have any questions or want additional information about any of our schools we do have representatives there but those are usually planned at the site level with their site teams on how they're going to reach out to their community depending on what activities are going on in these surveys you sent out. I'm assuming they're bilingual, correct? Yes. Good. And can you give me like a percentage? Maybe if you can tell me what the percentage is
024of the responses. Have it broken down by site. I'm just kind of like, you know, we the involvement I it can be by sight. I'm just trying to get a feel of so make sure that they're represented. Okay. Also to to direct your question answer also have part of the oh okay all of our parent all of them are offered. Okay. I want to make sure all of the community members are representative. Okay. Thank you. Any other questions? No. Thank you for the good summary. No, thank you for your As always, thank you so much. Appreciate it. And for the community that's watching on TV, this five or seven page document is basically an entire year's worth of her work. So, she definitely brought it. It's like watching I think a cooking show where they
025take like eight hours and put it in 15 minutes. That's what we just saw. So, thank you. Yeah. Thank you, President Weller. I'll confirm it's title two where your content specialist out of science is funded from. Oh, cool. Look forward to seeing it. You were right. All right. So, back to the agenda here. Let me get it up on my computer. And we are now on moving on to the public hearing. Yeah. So, item C6. Oh, I'm going to read this. Let's see how this works with my new contacts and glasses. Wow. Okay, I get to enlarge it. There we go. So, agenda item is um a public hearing to receive comments from the public regarding the local control accountability plan. So, as Dr. K has said, education code section 52062B1 states the soul school
026uh district governing board shall hold a public hearing to solicit recommendations and comment members of the public. Since we have so few people here, instead of me continuing reading on, um do I have to call the start of the I do, don't I? So, I'm going to call the public eating hearing to order at 6:27. And are there any comments from the public? Nobody. All right. So, yes, we're going to close the public hearing at 6:27 as well. Okay. So, there's that. Let me get back to now. We are on C7. and I'll hand this off to Mr. Superintendent and you can pass it on to Amanda. Evening. We also have a public hearing on the proposed 2526 budget and in preparation for the public hearing, we'll have a presentation from Assistant Superintendent Amanda Phillips.
027budget for now president Weller members of board cabinet staff meeting members and listening online I'm sure somebody's out there tonight we'll be reviewing the 2526 proposed budget last few weeks have been super busy time for everyone ending the school year beginning of summer school coming soon and then tossing in a multi-year budget but first before we get started I want to thank my finance director who I know is listening Josh Markley who's amazing. Couldn't do this without him and I appreciate all the hours of work that he puts into this um budget and not just that but finance every day started. So just before we really dive in to the nuts and bolts, let's just refresh ourselves a little bit um on the adoption process. Um and it's important to know what we even have
028to do to get to this point. to create a budget for 2526 and beyond, we first have to estimate um how we're going to end this year. And uh to do that, we have to figure out where we're going to end while this year is still even going on. And that's important because to start next year, we have to figure out how we're going to end this. So, while we're building our budget and using figures and estimates and assumptions, we are using the governor's may revise because that is the most reliable and the most recent information that we have at this time since the state doesn't have to adopt their budget until June 30th. We also use the county's assumptions. They offer recommendations as well. Let's see. And then, as Dr. Kasus mentioned um we
029have to adopt our uh district LCAP and our budget together. So you had one presentation already and one public hearing. Got your second going on right now and you'll get one more public hearing and hopefully next Tuesday we'll adopt both of us. You go back. So return to the board in September on um on audited actuals for 2024. Yes. So we'll 2020 we'll spend our summer closing our books um which is a great fun thing to do all summer long. Um and then we'll actually know where we end probably mid August. Um and then we'll bring a presentation uh we'll bring the report uh in our meeting is the 9th September 9th. Um, and that's when we'll bring what we call our unodudited actual. That will be our closed books. Um, but we won't have
030the audit report for you yet. So, that's why we call it our unodudited actual. That's where we'll know how we close our books. Typically, how close are you to your budget? And every year is different, especially since the pandemic. Okay. I think that was over with, thank goodness. But anyhow, thank you. Yes. I know it's a it's a definitely an important report. But in that report you get the estimated actuals and then you get how that impacts the uh the budget side by side. So that's a that's important report for us every Okay. So will it impact would we have to make an adjustment or it always impacts the budget because the ending fund balance in 2425 is the beginning balance in 2526. Gotcha. So as far as other adjustments we don't adjust the budget
031at that time but it impacts the fund balance. Gotcha. So um we've refreshed ourselves on the process. Let's talk about a few state level issues that are important to us. Uh the first and foremost being the cola. Um that went down slightly since January. So it went down a whole 13 since January. So it's statutoily set at 2.3 and that's what the governor has included so far in his budget. Um, number two, uh, there's a little bit of buzz around the governor's budget and how he's addressing his budget deficit. Um, he's using pearls, which is basically, um, he's just delaying cash from June to July. So, uh, just playing years a little bit. Um, and then he's doing some borrowing and So, that's how he's, uh, he's making his budget deficit go away. And there's
032just a little criticism because, you know, it could create some future fiscal issues and some people believe there's some transparency in that. But, you know, that's how he's doing his budget. And then, uh, yes. Oh, it's okay. Don't ever think we're not my budget, Amanda. I'm sorry. Don't worry. We're talking about the state budget. No offense taken. Um, number three, this is the second year in a row that the governor is doing some interesting uh things with Prop 98. Last year, you might remember, we talked about his maneuver with Prop 98. This year, um, he's doing an underappropriation. Basically, he's um pretending that there's less money than the formula says, so about 1.3 billion for Prop 98 that he wants to allocate. Um, and so just understating the revenue basically what he's doing. Um, and
033he's doing that because in the way the me way Prop 98 works, if he overstates it, he can't get it back. So he's just worried that if they don't manifest, he can't get that money back. So he's understated. But basically, uh, CSBA, uh, sued him last year for the maneuver that he did. And if this goes through, um, they'll probably sue him again. They don't believe it's constit. What was the result of that suit? It's still going on. It's like any litigation. And then number four, um, the federal policy. So, um, probably no shock that federal policy has an impact on California. um whether that be uh trade, tourism, and immigration with tariffs and impacting our uh supply chain and production costs and our stock market, but there's definitely impacts from federal policy on our
034state. And um good news is there's some proposed one-time discretionary block grant money in the budget. Um at this point, uh the governor is proposing about $1.7 billion. Uh this the uh legislature actually just came to an agreement on their budget. They're only proposing about 500 million, so about a third less. Um they all get to now negotiate together, the governor and the legislature, and see what really happens. But um so it'll be somewhere between 500 million and.7 billion. But we'll see what that comes out to. Well, that's a small range, right? Um if it lands around the governor's uh number it could be about one and a half million to us the latest figures. His proposal is based on average daily attendance or ADA. The uh Senate and Assemblies are decided to use LCFF
035formula which there's not a whole lot of detail out yet on what that means. So how that 500 million is allocated be determined. Number six, this is an FYI. This really isn't in the state budget, but um last year we were really excited about the uh new attendance recovery program that was supposed to start July 1 of 2025 um because it could mean some additional revenue for us, some new ways to recover attendance other than Saturday school. That's really the only way get to make up ADA absent. This program could mean we could make up attendance before school or after school in hourly increments, which is a very creative way that we could get more attendance. Um there's been some rumors from the legislative analyst office, which is what LAO stands for. Um that they're
036recommending uh that that be delayed, got about a $200 million price tag. So, that's one of the ways that they're suggesting the governor saves that money by delaying that because obviously if more school districts cover ADA, more money the state has to pay out. We'll see. We're hoping that that doesn't come true. We wanted to start July 1. Um, but we just wanted to keep you guys informed um that that is out there. We'll see if it comes through. Now, into the nuts and bolts a little bit. Every budget needs assumptions and here are the basis uh for ours. Half of our numbers are basically um come from the state or the county. That's our cost of living adjustment or cola stirs and pers. And then our local information um our enrollment, our average daily
037attendance or a unduplicated percentage or up based on our trends and our historical data. So we'll just kind of walk you through some of those numbers here. So for our enrollment, we're starting 2526 at 6,95 and then projecting a continued decline of about 125. We get there by using our most recent demographer report um which is projecting a decline rate of about 15.4% or 964 students um over the next seven years. Then we combine our feeder data from our elementary feeders um and then we look at our cohort data. a little juzjing of all that together and look at our own historical trends because we have transfers in. We have special ed have um our own schools that transfer amongst each other. So we have a lot of different factors to factor in not just
038refer not just our feeder data have to take all those things together what real life looks like and so that's kind of where we get that average um and then we every single funded ADA. So the numbers you see next to that column um we are using the prior three-year average option. Um we have three options. Recall we can use our current year, the prior year or the prior threeear average. Whatever is better for us um in a declining enrollment past three-year average is going to be the best option for us because three big numbers. That's what we want. So these um our assumptions are at that point for now. Obviously the two out years will change as they get more more numbers. Is there any chance that with the funding problems that the state
039is going to have and is having even though it's not admitted yet that they could change that three-year average rule that we could only take last year or current year? Is there a chance? Is there anywhere on the horizon that that could happen? I mean anything is possible. Okay. But nothing you've heard about. Nothing I've heard about. No. Because I'm like, if they wipe they change that, we could lose millions. Sure. Um, every uh every percent of ADA is about $350,000 less. But um no, I have heard nothing about removing an option. Um so our up or unduplicated percentage we have holding at 81% just flat. Um it's come in slightly higher the last couple years. um but like a nice conservative approach and then if it comes in a little higher in the current
040year a little slight boost because the way LCAP is funded is it's rolling three for average. So the current year matters for LCAP. So if the current year comes in a slight high a slight bit higher they get a few more bucks in that current year. So hold it just a smidge under and give them a little boost in the current year. uh cola as I mentioned that's uh the 2.3 is what's statutory at this point two years are what is forecasted um in the out years and um those will almost 100% change as um those numbers get closer to the current year similar stories for stirs and pers those rates are the most current rate set by the boards of each those organizations um for now stirs is basically set flat at 18.1 um
041and is going to fluctuate somewhere between that 26 and 28% rate um for as far out as they projected beyond just so then just for people listening and correct me on this one that we contribute 19% of their salary to their retirement account. Okay. And then on PERS uh and I always forget which one is the teachers pers is the teachers and PERS is the classified. Okay. And classified we contribute 27.8%. Is that because they're paid less or like why? Because that's a pretty big difference. Those are the rates set by the by the boards. Um I no idea why for those particular groups. But as far as the fiscal impact for us, yes, uh the classified salaries are are less. So those fiscal impacts are different. Um 26% of a classified salary is depends
042on the salary. Obviously there are very many different ranges for a classified employee and that does include classified management. Um and your certificated also does include certificated management. So the rates really do great. we're talking about brings up questions for my state assembly person, not you. So, we'll move on. No problem. Um, and there was a question um a request for an example just to maybe understand a little bit more about the retirement system and and stir. So, I have an example for you. So, uh based on a teacher. So, if you had a teacher and they were let's say 64 years old and for us if they were on grade five. So, the way our teacher salary schedule is set out they have different grades. Grade five is the furthest, so they have like
043the most education. Um, and they were on step 34 on our salary schedule. Use the stirs uh formula for retirement. They would have 34 years of service. They would have an age factor of 2.4% our salary. They would make $137,99 at retirement. That basically means they would make $9,377 a month or $112,533 a year just because of the average American social security payments around 2 grand. That is a lot of money and that's why we're seeing this. But that's not an issue that we can deal with here. But that's a lot of money we could put in the classroom. But that's for another night and you're not in control of that. Giving you example. Um and for and just so you guys understand that age factor that age factor is a big deal. Um a
044similar teacher that's on the same salary step. Um and maybe has just a few years less. Still 31 years of service instead of 34, but maybe has an age factor of 1.86. So maybe they're 57 instead of 64. um they're making 6,600 a month instead of 9,300. So the age factor is really a big deal when it comes very close in years of service, but that age factor really that take-home no problem multi-year projections. So um we are going to dive a little deeper than maybe we have historically here. So, um here is a kind of zoomed in first page of that um cover page that you get with our adopted budget um of like 150 page document you get and this is the cover page. So, this is the little consolidated version of that.
045But what you're basically looking at is all three fiscal years here. Um and you have the unrestricted column which is labeled UR for the sake of space. Um, and when you think of those funds, think of the funds that we have the most flexibility with, which is LCFF or local control funding formula revenue. Basically, the funds that we really get to determine what to do. Next column right next to that is going to be the restricted column. Those include funds that have many more rules, um, requirements, strict reporting. Those are going to be things like your title funds, our learning recovery block grant, um, some of our special education funds. Those are the types of funds that are going to be in our restricted columns. That third column is a sum of both of those
046together. Very creatively called combined. Not that creative necessarily on the business side of the house. Combined. Um so uh it has a bunch of numbers on it. I know it's sort of I try to chunk it out into sections for you. Um so that we can just kind of see here how it all flows together. Revenue and expenditures followed by uh transfers and contributions. Um and then in the end you can kind of see the change in fund balance and our ending fund balance at the bottom. Um and then uh so revenue essentially is driven by the assumptions that we just talked about. Um LCFF or local control formula is on the unrestricted side. On the restricted side of the revenue is basically all these various grants that we get many of which are formula
047driven means are also tied to enrollment attendance or unduplicated percent expenditures. We're going to dive a little deeper into that next. Um, I did want to just summarize one thing for people listening at home because I know there are union members at home. Please note that the change in fund balance means we are overspending by 15 million. Yes, we do have a fund balance remaining. However, we are overspending by 15 million. I know that the United States government has set a bad trend in that and it's being worked on, but we're still managing from a point of deficit and that will have to be dealt with. So, thank you. Um, so contributions um is also um a large expense for us that really isn't in the expenditure line. So, just to kind of point that
048out and basically those um are our special education uh contribution. Um and so those are basically we contribute to special education far above and beyond the dollars that we get from the state or the federal government for special education. That's why it's called the contribution. Um we those dollars are also our required 3% um contribution to routine restricted maintenance. Um, and then we also contribute about $850,000 to PTE. So then just to kind of point out what President Weller was just kind of talked about, we talked about that change in fund balance, but you know, the biggest point here is the beginning and the end here. Um, and I won't reiterate what you just said. Um, I am more looking at the unrestricted side though, um, since we have a little bit more control on
049that side. Um, and the combined obviously takes into account some of the restricted side, but um, much better. And we'll keep talking about expenditures. Thanks, Amanda. Absolutely. Um, so here's a little deeper dive right here. Um, and if you were wondering what salaries and benefits were all combined together, um, they're about 118$120 million depending on the year. And um so that's certificated salaries, classified salaries, and benefits all combined together. Um any in a particular year, they're in that range. Hey Amanda, quick question for you. This is I'm going to try to throw you off your game here. That's all right. See how hard of a question I can ask here. Uh your books and supplies for the 2024 2025 year about twice that number. 14 million. And for 25 26 they're up and down. There
050a there a reason why the that category drops so heavily in my current So you're talking about my current year current year 2024 20 24 25 your books and supplies are 14 25 20 combined for 25 26 they go down to 6.7. What page are you on in the budget, Ryan? On the PDF page. PDF? It's page three. It's a 52.6% up off the top of my head. Not sure because I'm not looking at the doc, but I can get back to you. All right. Thanks. Um, books and supplies. Right. You're totally good. But it's fine. Let me turn my mic on here. What I read in this back to Bob's analogy here, this change in fund balance, is that going to impact programs in the future? Change in fund balance. um it will impact
051programs in the future if we make reductions in you know Ryan I'm thinking about your question more um probably has to do with carryover so in our current year we probably have carryover built in um we get from the prior year and indeed don't have carryover built out yet okay solve the problem getting back to my question yes Sorry, the angels from the excited by are answering my questions in my brain. Um, but yeah, so David, it at this point um what we have built into the budget are the the plan that we have shared with the board as far as reduction, but as far as current future further out, we don't have any other reductions other than um seven. So, as far as how it would impact other programs, we don't we don't have
052anything else. Okay. So, getting back to and I'm going to go back way back um back to what you discussed previously based on um the budget being balanced in that any of this shifts or changes this can directly impact your current budget. Is that correct? the state the state budget. Yes, absolutely. So our we are funded by the state. So absolutely we have you ever seen it go drastically south? Absolutely. So the year of the pandemic um 1920 we actually received they were forecasting I think at the May revise a 10% reduction. If you look that year in board in board docs, we took a resolution that had a $9 million reduction in the second year and like a ridiculous $23 million reduction in the second year because they were forecasting a 10% plus cut
053because of the pandemic. We had no idea what was going to happen and that was what the budget what they were forecasting in LCFF. And so to make this all balanced, those were the numbers that we had to plug in to get end result. And then none of that manifested. It ended up being a zero cola, not a negative 10 cola. Okay. Um and so we came back in August that year. We have the ability to do a 45day update. So once they adopted their budget in June and said, "No, just kidding. Won't be negative 10. It'll just be zero." Which is not great, by the way. we don't appreciate zero. Um but it was much better than negative10. Um and so we came back in August, revised the budget, provided it to the board,
054and um I I don't believe we any of those have 9 million and $23 million of reduction and yes, we've seen we've seen it go south instantaneously. And I wasn't here during the great recession, but um I was in another district where there were many mid-year cuts um during that time um 2008, 2009, 2010. Many districts were going through midyear cuts where you were getting um information in the middle of the year and you had to cut current year in the middle of the And one of the things we're doing here is actually the governor is not even going to finalize the budget until we're done here. So, we're finalizing our budget before the state's final and that's the way it's got to go. Cart before the horse a little bit, right? It is California.
055We'll catch the cart and the horse up a little bit later in the fall. Right. Hey, Amanda, can you uh also comment real quick while we're here in terms of just the general I guess guidelines be behind the my right. So in terms of uh I guess in my industry the term we would often hear is sandbagging right and and and yes in terms of uh just estimating you know 100% revenues with 100% um expenses means you have our projected NY Sure. So um some of our assumptions basically um include that um all of our people show up every day. So that's that's part of I think what you're talking about. Um, and so that includes some things that we know eventually don't happen. But but what for us don't know who's not going to
056show up. We don't know which IA is not going to come to work or which teacher is going to have a baby. Um, and some point we're still going to get a sub for the teacher. Um, and whether that sub is going to be an actual sub or a temp, um, we're not sure. So it's better more conservative to fill it our budget as as a human bill rather than assume 20% 30% 40% um it's going to be a vacancy and then be short because in this world it's not like we can just go out and um manifest more babies and fill the gap. Can't just go sell more widgets here. um you know so we don't quite have as much control maybe out as in the private sector where we can uh manifest revenue
057um but basically you sell more uh yeah but basically you know that the whole reason an exists is you know AB1200 was created so that um districts could have a early warning system. Um I believe it was uh in 1991 the Richmond district and then in like 2004 um Oakland. Um these districts went bankrupt. They were taken over by the state. Um and so this system is created so that you can see long way out that things might be going bad and you have time to make those corrections. So, while it might seem that an MYP is always crying wolf or that, you know, it always looks bad and then it never happens. Well, hopefully that's what happens. Hopefully, it never really does happen because you're making those assessments. Um, you know, hopefully your board,
058your staff are coming to you and saying, "Look, if you did nothing, this would happen." And we're saying, "Don't do nothing. Do something. Um, and then this will not come true." So that that really is the purpose um of the MYP and that's why it was created. Um no when you and I were um that's the point. Thank you. Welcome Amanda. I notice like salaries I'm looking at it. They kind of drop then they go up. You're right. And then same with the benefits. The benefits drop and then they go back up. Um I'm so glad I'm glad you caught that. If you're wondering why that is, it's because we have some reductions built in in 2627. That's year two of the year plan um that we came to the board with. And benefits are
059directly tied as Bob mentioned benefits are directly tied as a percentage of salary. So things like stirs, hers, um social security, um workers comp, all of those are a percent of salary. Um so as salaries decrease, benefits will decrease. So basically those reductions that we had built in in 267 drop those salaries and that's why benefits drop as well and then we don't have reductions built in in 2728. Okay. So they creep back up. Okay. Thank you. No problem. Books and supplies. Um that is the specific title of that line. Now who knows? Um I did not Google when CM and all of that was created but that is the specific line. But just so you guys know that is it is far more than books that is bought during that line. That is basically
060all everyday materials and supplies, office supplies, science labs, art supplies, custodial supplies, printer ink, paper, costumes, pants, shoes, flag footballs, and all those things. Services. Um, this covers quite a variety of things. This is like ink charges, copier leases, insurance costs. This could be your um juvenile court, your non-public school contracts, our pool rental fees, um travel, conference, mileage. So services really is very wide gamut that bucket. Then you have capital outlay. So this includes basically any building or land improvement or equipment that's over 5,000 $5,000 big equipment. Little equipment is going to be in books. So Amanda, kind of a similar question, right? So on those line items or expenditures B right so four five and six book supplies service capital outlay in each of those lines there's a pretty drastic right 52% for
061the books and supplies 20% or so for then an 87% capital out it's all going to be the same thing so each year especially in our restricted programs they get carryover and so they can spend that however whether it's um their SIPAS or um our other grants like our learning recovery grants, all of those have carryover year to year. Um and so they book them to spend them and then uh whether they spend them or not then don't necessarily have that carryover again until they have a plan. Does that mean it's safe to say that those numbers will drop back up in a sense they will um usually around first interim? Um well actually in our unodudited you'll see carryover. You'll see carryover once we close our books, once we close out those grants, we
062see how much carryover they have again. And you'll see that um you'll see that in September again. How does that carryover work if you if you're budgeting a um 144k, right, for uh from expenditures, but then you're going to pull in another 20 million from carryover. That work? It depends on the grants. So some of these grants um like title is a good example. So the way the title works is um while it's allocated by school, the carryover doesn't get tracked by school. It gets allocated all back together and almost like taken back out and then allocated by site. So we can't necessarily know how much the um allocation of carryover is until every site closes out and and then we figure out what that specific allocation plan. Um, so that's one of the ones
063that's a little weird because everybody has their own allocation of their own plan. Um, but the exact carryover that they get won't be what they exactly had left at the end. Well, each that all that all that carryover comes with its own grant, right? So it comes with offsetting amount and the revenue for the next year will be different. So the the revenue that we're projecting different from allocation tried to get you. It's okay. It's it's really complicated and thank god I have a director that's amazing and as an finance supervisor as well because we have um because of our unduplicated um have a variety of grants that we qualify for. I mean the arts, music, um another one we have valley with the equity multiplier and CSI. I mean we qualify for a lot
064categorical grants um that cause a lot of care um and CPI. So kind of um the opposite of what you're talking about. So not the carryover but um our materials, supplies and services get increased here um basically by the consumer price index. So that's just a percentage um that we then take and multiply out. It's one of those recommendations by the county that we use multiply each of the numbers out each year just automatically. And that very last line indirects um these are basically costs that we recoup from other programs or grants um that are allowed. Some grants don't let you charge indirects but some do. Um and they identify specific rates. So um that is a negative. So it's a negative expenditure. Um so we can basically feel a little like stealing from Peter
065to pay Paul. Um but we basically charge other grants or programs or uh services that um let's say a good example is maybe like payroll. So um a grant that you know is out there that exists student nutrition. they they run their program. That's great. But, uh, they don't have a payroll person. We run their whole payroll. So, an indirect cost to them is that we do their payroll. So, there's a rate that we're allowed to charge them to kind of that cost that we're operating for the program. That's what those cost. And then, like I said, various grants allow us to charge various forward. So um just a little a way to look at the same thing um and with some percentages numbers. So if you wondering what salaries and benefits were as a
066percentage it's 2.43. And if you wondered what all those different benefits were and what percentage of them was of our expenditures a big list of them right there. Um, and then if you were curious, uh, materials, services, and capital all pulled together is under 17% of our entire expenditures. And services, we just thought it was a little interesting that um, services is about 11 and a half% of our expenditures, but a little bit under 5% of those are things that we feel are basically that we can't control or are necessities, like we have to keep the lights on. Um, we have to have insurance. our sports that swim would say we need to have pool fees. Um so these are sort of things that we would have to continue to have um have a whole
067lot of control over what a student us um so just to kind of identify of the 11 and a half% of services about 4.23% with so we believe a little bit that we're heading into some different times and there's a few factors driving that. um the end of one-time pandemic funds, return to some average and smaller than average colas, um the end of the impact of hold harmless provision for ADA, which is also from the pandemic. And uh the reason we want to bring this up um is because prior to the pandemic, and it may be hard to remember anything from before the pandemic, um like a whole different life, uh we were talking about reductions back then. Um if you look back June of 2017, we're doing a resolution for reductions. We did some
068layoffs in March of 2020. Um but then basically the pandemic happened and to give you a little context um on two of the major changes that we're talking about is um here is COLA or the cost of living adjustment over the last 30 years. And um basically what you can see is it's all over the place. Up, it's down, it's zero for a bunch of years. Um, but basically if you averaged it all out, it would be 2.39%. Not that an average really matters in this case because you're not getting it as an average, but if you were curious, that's what it is. I basically wanted to highlight those uh peaks to the right of the slide and the three red circles. Those are basically the highest three consecutive colas in history um at least
069that I could find uh for K12 education. Um, and right before that, you'll see that big yellow bubble. Um, and that's basically when we started receiving um, all the one-time pandemic money, which totaled just over $52 million. Basically, that was the 2021 2122. And that was just our district. That's just us. So, if people are wondering why inflation went nuts, take that times how many districts in California? Thousand. Yes, you know, over 1100 something, you know, and that is just the state of California, meaning we're talking trillions. And not every district got $52 million. It all varies. I know, but still, that was our number. Um, but just an idea. It was 11 different grants. Um, 15 17 different resource codes, which is basically how we track the funding. Um, and some of those resource
070codes changed. So we're just having some grand old times during this time. Um but prior to the pandemic there was one time funding but it was significantly smaller. Um between like a million to a million and a half. Um you know and that was you know 16 17 18 19 those kind of three years it wasive time funding Governor Brown. Um but if it nowhere near 52 minutes then you you layer that into this third factor that I'm talking about which is the end of that ADA or average daily attendance harmless provision from the pandemic which is really important to a district that's dealing with declining enrollment or it might look a little familiar um we've seen it over the last year or two um but I've updated it with some current information um and
071the impact we want to talk about here is at the same time we saw that large influx of one-time money 2021 also basically put a pause on average daily attendance in 2021 we essentially had no ADA we were in distance learning old harmless for the year basically said repeat 1920 so then we went to 2122 and we think things are going to go back to normal and Delta and Ocron ravage the world and isolation and quarantine makes us state says Well, here's another year where you get to use your 1920 ADA, but you know, it's been a year or two. So, adjust it for your current year enrollment. Now, we basically use the same ADA for three years. Um, which you can kind of see if you look at 1920, 2021, and 2122 looks kind
072of flat across that blue line, which the blue line is ADA, and the green bars are our enrollment. And then um that's also the first year that cola starts to tick upward 5.01%. Then 2223 happens. The state's a little worried, rightfully so, that many of the districts in declining enrollment that have used the same ADA for all these years are going to fall off the ADA cliff. Um and so they create this third option, pre prior year average, which is supposed to soften the landing. Sorry, those phrases are kind of like pivot. We heard them so often during the pandemic that they're like drilled into our minds. Um, but what that did basically is it gave us a fourth year of essentially the same number because we averaged the same number that we just had
073three times in a row. Um, so and then that same year 22 23 what's the cola? 6.56 even bigger than the 5.07 the year before. And then that year they also did an augmentation to LCFF, our formula, and increased base funding by 6.7%. That was just an additional increase to per student funding on top of the cost of living adjustment that that we wouldn't normally get. So the first year that any district has even one year of real current average daily attendance incorporated into their funded ADA is 2324. And this is where you start to see the decline. Even though you'll notice our ADA is actually higher than our enrollment. That blue line is floating above the green bar. And that's because there are essentially two years from averaged in with one year of 2223.
074Our enrollment is far below that and our ADA still above actual number of physical children attending our district. Good deal. It's a big deal. Um and then um that year we get an 8.22% cola. Massive. Now we're in 2425 and beyond. In these years, even with a three-year rolling average, every year is past this old harmless. There's no buffer to prop it up. We got this year 1.07. What's incorporated into 2526? 2.3. Aren't massive colas. This is an 8.22. This isn't.56. This is 5.07. Um, and while there is some one point sometime money, 1.6 6 million. It's best, not $52 million. Why' I spend all this time talking to you about all of this and giving you a history lesson on COLA and giving myself PTSD about the pandemic? Um, and why it's all woven
075into this crazy amount of money. Um, and it's because constantly, and you're constantly getting questions about why do you think now is any different and why are the next few years going to be any different than the last? um you thought you were going to deficit spend and you didn't and why do you think you are in the future? And I know Ryan, you you mentioned it a little bit. We already talked about the early warning system, so I'll repeat that. But um I'm going to tell I would tell anybody what I just told you. I had enough time. Don't always have enough time. Um but I I tell them they're right. We did budget deficit spend in the past and we didn't. Um you're kind of hoping it's like your taxes. um really don't
076want a big refund and you really don't want to pay Uncle Sam a whole bunch. You kind of want to be right on the money, but um you also want to know in advance anything's going to go wrong and you want to be able to adjust. Um we had no idea what the pandemic would do to our real actual spending until it happened. Had no idea the state and the feds were going to spend were going to send us $52 million. Definitely had no idea we were going to see colas as big as they were. Here we take the best information that we have at the time and we plug them in and do the best we can and at each interim we revise and we update. We get closer and closer as the year
077progresses. Right? We're doing the same thing showing you the unrestricted fund balance over the course of the next three years. Our current assumptions project deficit spending in those years based on what we know today. So we all have a common understanding uh what deficit spending is to us deficit spending means we have more expenditures than we have revenue or simply put are spending more than we are bringing in in that fiscal year. These bars Oh, sorry. The thing I like about math, there's no relativism numbers speak. Bars show that the level of our unrestricted fund balance and the impact of that spending. In the third year, the balance is projected at this point in time to be just under 8.5 million, which is above the 5% reserve for economic uncertainty that the board requires. Not
078by much, though. I pointed out below that the 5% is just above 7 million. Good news is we can meet our statutory fiscal obligations in all the years. So we will be recommending next week when you um have the actual budget to adopt a positive certification which means we can meet it in all three fiscal years. Um the not so great news is that I do think we will need to move forward with reductions in unless something changes because while we can meet our obligations this type of spending is unsustainable um in the type of fiscal environment that we believe we're heading into. So based on that um the next steps that June 17th we'll get to adopt both budget and the LCAP and hopefully by June 30th the state will have done their job.
079They'll have a budget and then uh be back on September 9th and we'll have our books closed and we'll see what is new. Thank you, Amanda. Um appreciate you sharing that with us and I'm going to have some restless nights here after in the reality. So, I appreciate you pointing that out. Um any other questions before I call open the hearing? I'll take that as a no. So, we're going to now open the public hearing um for comments. The public inspection of the budget is available from June 6 through June 10th, 2025 at the district service center on the website which is posted. And so, I'm going to open the hearing at 7:15. Any public comments? Not seeing any. We will also close the meeting at 7:15. And from what I can tell based on
080the agenda, that was the last item. So I'm going to adjourn this meeting and we're going to be excused to close session. And I don't think we're coming back out after close session. No, no, there are no action items to happen. So we will not be coming back to report on anything. Thank you. We are adjourned.