 We do have translation available in Spanish, if you need that, you can see it on your local. We do have, if anyone would like to speak to the public comment by them, please turn to the speaker part to... We will start with our Pledge of Allegiance. We will move on to item 2.1, our approval of the agenda. Can I get a motion? Motion. I have a motion and a second. Second. All those in favor? Aye. Any opposed? Motion carries or is there a vote? So we will go on to our public comments. Do we have items 4.1, 4.2 only? Do we have any public comments? Yes we do. So I just want to reiterate, since the comments may be at Wednesday's or your board session, just be a thank you Dr. Rodriguez for her work here in TVUSD and all of the advancements she was made for our district. I wish you were well on your next endeavor. And then we reiterate that DDFT is looking forward to working with the Board of Justice on the selection process for both a potential interim superintendent as well as a permanent new superintendent for the district. Thank you. In brief, in regards to the budget, there is a concern when it comes to the budget. I'm a resident over 30 years here across the street. I'm a parent, I'm an advocate and member of this community and of course a teacher. My observation is, because this is the site where it is for children more than five years. But my observation when it comes to the budget in the district in my concerns are addressing the budget at 11 meetings, school site council and leadership meetings practically nonexistent. I put a concern for me. The ongoing panel has been, no agenda, no meetings, no schedule, no meetings. When it comes to meetings, my concern is reaching out to our community, especially our members, our parents. I like to see flyers, phone calls. We cannot depend just on the website or computer. As a discussion we can have. Only a few select people get to get sometimes this information. Furthermore, again, the budget has never been addressed or said that he and me as school site council or leadership meetings. Yet I observe the spending of monies and I question because we used to do this when they came to spending money. How does it relate to the common core? How does it address the population in the school? And how does it address the WAN staff? As I have seen that, sometimes people get assigned to teach without the appropriate credentials. The opportune word here is accountability across the board. That means including the district. Thank you for your time. Thank you. Thank you for holding this meeting. Since we're doing this exploration, I do have a couple lingering questions from years back that are budget related. For example, I want to say 2018-19. These results have gotten some solar panels. I think this was CTE funded. But then somehow over the summer they disappeared off one of our buildings. I'm wondering if a capital asset moves from one site to another, does the one site that lost that asset, do they get compensated in any way or just how does that work? Also, in that same year, 2018-19, my first born, I was born. I took a leave. My leave was long enough that I wound up using all the days I had went into differential pay. My sub at the time was a Renaissance teacher who was also there already funded. But I'm wondering in those situations when you use all your days and then you go into differential pay, that money that went on my check, where does it go? Does it just go to the general fund? So that's another question I have. And then I have a request. I think it goes along with our LCAP goals specifically around a positive climate for the students. So I would request that we would add a position that would be like a restorative justice coordinator. And they would go to, probably I would think they would serve multiple sites. It would probably be something along the lines of like under the counseling kind of bureaucracy, but basically helping to facilitate those hard conversations that students might have coming together after like a conflict or also it could be helping staff that a conflict might occur like at a site. And sometimes it's good to have that like kind of outside party help to mediate things. So that's something I would be interested in. And then also I just wanted to take this opportunity to thank Dr. Rodriguez for her work here, especially I think in like the elementary level, there's been some really good things you've brought. It's made me want to consider taking my own kid here. So I appreciate the work you've done and I wish you well. And then to just follow up on one last thing that was said, I think we should also do a board policy where admin are required to make sure they are transparent with site budgets and transparent at site council meetings, which I think is already pretty good. But then also staff, staff meetings. So thank you. Thank you. So item 4.1, the selection process for interim superintendent and permanent superintendent. School board can have selecting a district while we can get a superintendent. So in terms of, so I'll talk about timeline, interim, acting superintendent, selection process, the permanent superintendent. So for our timeline today, we're discussing and determining the processes for the interim superintendent between now and our next district guard since Wednesday. To now the 28th, we're going to do our search process for permanent superintendent. We'll select our superintendent. My apologies. My coffee is yet to quite clean again. But between now and the 28th, we'll select our interim superintendent. We're a search process for the permanent superintendent and that will be good. And that will include opportunities for. I do want to note that on July 1st, the interim or acting superintendent will do so well. I put acting in there as well because if an interim superintendent is not available right away, then the board would say they are available until July 18th, for example. We may need a small, a traditional time for our process. In that case, the board will like the acting superintendent and then the interim. Our goal is to have a permanent superintendent by default. That may be an ambitious goal, but that is what we would like to see happen. So we have continuity, you know, in our district. The highest priority, however, is to hire the right person for that. And again, there will be many opportunities for a stakeholder. So a challenge of balancing the transparency of the process. And then we also have the rights of privacy for personnel. So what we can say is that we do have the resumes between qualified candidates. And although we could simply choose the candidate in the process, as it is a short-term temporary position, we are mindful of the role of our constituents and have decided to have a discussion about the process for the interim superintendent in the process here. So that discussion will follow this presentation. In terms of selecting a permanent superintendent, option one, is that the district staff conducts the posting search candidate for the permanent candidate. The upside of that option is that there are some upfront processing. The downside of that option is that this is a very timely labor-consuming process. Our district staff would not be able to spend as much time on the regulatory side of these, which could potentially impact, I guess I need to be close to the range. So the downside to this is that it is a timely labor-consuming process. Our district staff would not be able to spend as much time on the regularly assigned duties, which could potentially impact other temporary duties, such as for those certificated and classified positions that we may employ. Depending on the nature of the impact of work duties, the cost savings achieved through this route may be offset by a variety of factors, such as costs incurred through work delays or needing to hire additional separate staff to assist. For option two, you know, we could hire a certain term that specializes in this process. And, you know, so that's a, that's a, the upside to this is that these types of firms are very experienced with the process and can manage the posting, searching, and any process. They would likely have access to a wider pool of qualified applicants than they would solely use in internal processes. The service staff access to national candidates nationwide through their databases, they also have the time to reach out to candidates who might not have otherwise applied. Downside, there's a higher fund cost. That is mitigated by the long-term benefits of using this method to find the right candidate. So, as a board, we have an opportunity to discuss those. We're going to start with the insurance, because that's really an issue. We're going to talk about the coming. Any questions or comments from the board? Okay, um, yes, I was under the impression that this would be a process that was more like what we needed to choose, or trust me, what's the answer. And so those are prepared just simply. And so I would like, but ideally what I was like is, you know, I've had a lot of people reach out to me from the public, asking me what the process was going to be, what's next. I wasn't able to give them an answer, because I was told, this is the first time I'm hearing about even the permanent superintendent process. I've asked them, you know, to go let the board figure it out. It's okay, I'm glad we're having this discussion. And I'd like as much to be public as possible. I understand we do have some candidates. I expected, you know, us to have some referred. I had also expected maybe some outside of, in our area, but not necessarily with regard to, which also maybe submit an application or a resume for consideration. So I'd like to give that time. If anyone is willing to put in a resume with a letter of intent, I would like to see that. And are you talking about the interim? Interim. Yeah, thank you. Great, glad we're having this discussion in public as well. Obviously it challenges the timeline. We've done it a lot of times to make a move, but so we have to balance that as long as we're going to be there and transparent. I do think it would be, just speaking with some thought in my mind about how could it be, I know it's a slightly different process than trustee appointment for interim. I understand that. There's a lot of, we have Werner region, which with a lot of people in education. And I know there's been a lot of buzz about what's going on here at our district. I would be in favor of some kind of short timeline where people could send us a resume and a covered letter but make it a very short window or a close window so that we would have time to then discuss those resumes and cover letters at our next board when we're going to tell the youth so that we would have a deadline before then. So if we waited to, I'm just kind of clarification, if we waited until the 28th to review those, then it's unlikely that person would be able to make the deadline first. I just, yeah, I acknowledge that fair point, that's our next meeting though, right? If the 28th was our next meeting. So I just think that's, as it is right now and so we want to schedule another meeting, but I'm not terribly concerned if we have to have an acting superintendent from our staff for a couple weeks. That doesn't scare me, but I'm open to hearing from you all if that's a big concern, but that seems like we have a cabinet capable of pulling the fort down. And so I would be in favor of a process where we short out a full job description and all that, just invite, resume, cover letter from the representative in turn, and that we have a deadline maybe like Friday, something like that. How's the action going? Hello, okay. Good morning everybody. Glad to see we got people here today. I know it's different here. Good to see you. I would kind of like to see a process where maybe open it up for a week. Just this week alone, we just cover letter, letter of intent and interest, and hopefully we get some people to apply. You know, as Tresquilis said, there's a lot of good people here in the Palo Alto-Balmau National District. We've been in leadership both before, San Luis County, Monterey County. I would like to give the people of this area an opportunity to submit applications. We're here to read and listen to what the people are saying, what the people are thinking. I think we just open it up for the next week. It's 5 p.m. Friday. If nobody applies. I know there's some names. Thank you. Just my idea. Trustee Aaron, Vice President Acosta, do you have anything you would like to add? Hold on one second. But if you, Trustee, said, and I feel that we should have the process should be open for people to submit this resume to our superintendent right now, via email, maybe Trustee Holm as a present myself. So there's three point of contacts and insurance that we're seeing that, but also not stepping into any ground access. And then bring those back to the board and then have the board review this, bring it by those to be interviewed by the board into whatever the assumption is with that for the interim. And if we need to appoint an acting superintendent, you know, in the process of that, because there will likely be some sort of lack in how we did it to the trustee area 6, when that was open, it was publicized. So that is to say, trying to create a formal job description and all that, but that it's publicized, it's, you know, on the district's website. And then this is the process to receive these resumes for the board's review. And then the board will make the contact to those candidates that have the resume forward and interview them and go from there. In terms of publicizing, can we have that conversation? I want to make sure that we meet people's expectations for the trustee position. We publicize in all major newspapers. And that is, that would not be able to happen by next Friday because, for instance, we're interested in Maharonian. We would have had to provide it to them by Wednesday of this week in order to get it into Sundays. The only one that was quick was Look Out. Both the Sentinel and Registry for Maharonian, we have missed their deadlines. So I just wanted to make sure that we don't have issues on the 28th with concerns that we didn't publicize it as we should. So if we did, if you all could have a conversation about that. The great point, I guess, a suggestion on that front would be that maybe we make a deadline on that Friday, like Monday, the 26th, because if Maharonian comes out and paper on Friday. So, and then perhaps, if we could send a press release early in the week, because if Maharonian can still put it on its website, they could step on their website early as well as all the other outlets, and maybe we could make to satisfy that potential. So I'm wondering, because it's none of those of us who are trustees that have acted in the superintendent role, what would it look like to have an acting superintendent that they try to superintendent and then transition to the permanent superintendent? Would you agree with the other side? Yeah, so I think it all depends on timeline. So the longer that you have any of the two, the more destabilization of the district that you're going to have just because there's uncertainty. So I think if you, I mean, as I mentioned previously, I think it's best to do an interim and then the permanent two. If that can't happen, then my suggestion would be that you have the acting as short as possible and you still have the interim as short as possible. If you look at any school district that has had long-term intrams, that school district has led to dysfunction. And so I would encourage you, and those are even local school districts that that has happened to, because of the fact that people get themselves into a holding pattern and there becomes uncertainty of which direction we're going, what are we doing. Also, it takes time for people to get to know everything that I've set in place in seven years. I'm not saying that the person would have to do everything that I have done, but people are used to my level of communication. And it's not something that staff does for me. I do for myself. You're gonna, by doing a double transition, there's going to be more shock to the system, but if you're gonna do it, the summer is the time to do it. But I would really encourage you that you have an interim in place and ready for August 1st when basically everything starts with just school, just school year. So that would be my suggestion. If you cannot make a decision prior to the 28th, then you do have the July 12th meeting, which means that you would be able to do the contract for the interim then. And basically they likely would start August 1st. Because I'm assuming that person is employed. And if they're not, then they're retired and they still have to figure out their life and get here. And so that would be my suggestion. And not have it leave work. So just to clarify, so if we were intended, alright, so if we did it that way where we could be solicited feedback from the community, how's that? Okay. I love this guy. So, where are my thoughts here? So I'm hearing from my fellow trustees that you would like to solicit resumes from the community have a deadline of Monday so that we can at least post in all the major news outlets, is that correct? We would need to appoint an acting superintendent opportunity. I mean, there's not any way around that if we do it this way. We'll have to do an additional meeting if we want to actually call people in. What did the people like? Great point from the president home. So if we were to have the deadline on June 26th and then review what we get at our next meeting on the 28th and just to remind everybody, we did create a meeting, we had a meeting on July 12th, 23. I think that was the idea of one item that made we actually might approve and win some. So what we're going to do is screen the 28th and as well there's 4th of July, which is, of course, not the greatest week, but it is what it is. So there's Wednesday, July 5th, Thursday, July 6th, I'll just be for myself, I'm available, just for concern of the timeline. We were expected to pick someone without any interview place correct. I don't know. So I don't know that. I was under the impression that we would put it out there like if you'd like to apply, you just pick your resume, you get through the deadline. And as long as I think let's say it is Monday, if the board has Monday, Tuesday, and Wednesday to go over those resumes, there's a good chance that we can come together in closed session and pick someone without any interview. And you can contract that night and that would definitely speed up this process. If the board felt that there was, you know, a cut between two or some other week that the public would want to interview, I think we should have that in place if we did, but I would hope that we can leave that to session. I would also say that the interim is a temporary position. It is not meant to be the permanent, you know, direction of the district. So I would put that just to my use. So their contract would be finalized on time because they would have to... Yes, but we legal counsel did mention that something was happening that night that she could begin that process. Instead of, you know, then what we did interview somebody else. The challenge that Trustee Ford is, is that you still wouldn't have an interim until July 12th. It's July 12th because the only kind of like the idea though, the only other option is to start closed session very early and started early like four so that that would then give time and, you know, it's not going to work though. Sorry. This is by Brown and I do have to have that contract posted by Friday, so I'm sorry. Yeah, I mean you still could pick someone but it would still defer you until July 12th. So it's sounding like I mean we'll have to we'll have to appoint an acting. I'd like to hear from, you know, our other trustees, are you comfortable with providing direction along the lines of what Trustee Ford is? And you have to speak very closely to your question. Thank you. I'm asking all trustees if you have a comment, please, by all means. Yeah, I'm hearing that something would be a good idea. So I'll just keep it sweet short and I can just interject if I need to but I'm open to that. I'm sleeping. I have heard that the 26 being the deadline, obviously having those two, I could say the 26 also I think they have to be specific about a time on the 26. I think that would be like five o'clock and put this to say so that I can then be responsible myself if I don't know if we need to have three of us in the conversation to get it distributed or if the superintendent would just distribute it to those resumes to the other trustees one, yeah, one, one-on-one, right, to avoid forgetting around after the issue. But then with the seven houses of the trustees, we all have those spent 27 and it happens that for review I think the superintendent's office could make the point of contact to call, I think every person that's in this resume in my opinion deserves an interview would be more or would be no agreement that and I think the superintendent's office could be the one to coordinate that obviously with the interviewees and candidates will be the interviewees I did hear the superintendent mention that it would be a grievance that would obviously have to start sooner we would have to set a timeframe for each interview as well and that is, you know, when this starts at this time and at this time for that 28 we may potentially I think as trustee Laura said have a decision that I did here with the superintendent Dr. Rodriguez I think about may not have a decision like I did about legal counsel maybe be able to negotiate a contract but that legal counsel may not if that ends up being that at that point to be halfway till the 12th formalizer contract we can ensure that is what it is but I think at a minimum then we can walk out a closed session on the 28th with memories and acting so it sounds like so what I'm hearing from from Vice President Acosta is a slight variation on what trustee Torres said so what I'm hearing is soliciting the resumes by the 26th and then interviewing those in closed session on the 28th starting closed session early so that we have enough time to do those activities and selecting a candidate in closed session on the 28th for an interim and then we would appoint an acting superintendent you know, while the contract has been reached because we won't be able to vote on the contract on the 28th if it was finished because that would be the been posted 72 hours before the regular session so that will have to come the contract will have to come to the July 12th meeting and in terms of where to send them to in the past group we've had we've said that we'll send them to Emma or J.R.T. yeah, generally generally something she's a superintendent so it'd be directed to Dr. I'm fine for all three I would say and I'm not trying to shut the floodgates but just knowing how people who have applied for other positions in the past we will have people who are not not able to take that position and so I think they're just I think saying anyone who applies gets an interview is setting yourself up to have a lot of people who have no skill set in running the school district so I'm not saying it can't be the agenda setting committee or whatever and I'm not trying to be the gatekeeper but you can if you if people here anyone who applies gets it you're gonna have everyone from you know someone that has no educational background I mean when I say educational background I'm not talking about college or university I'm talking about an understanding of educational system applying knowing that they're gonna get an interview so I would not suggest that you do I would suggest you set a preliminary criteria of what that person has to have or at least start having that conversation once you know once we're doing it I mean it might be like we can't approve the contract anyways on the 28th you guys could just decide if you like trustee put it said you could decide if you have a close call and you want to interview them you could if there isn't a close call and everybody agrees just looking at resumes then you just do that but just to visit the timelines and because we want to have as long disruption as possible I would prefer to utilize trustee for us suggestion of looking at the resumes looking at the cover letters and if we cannot come to consensus in closed session on the 28th that's our our backup is doing the actual special session I would support that I would support that and again you know I'll say that to me this interim position while it's important to have somebody in place the thing that this ordinance focus on is finding an excellent superintendent to take the role hopefully in October so I I don't want to belabor this process too long we already have three excellent qualified candidates who could step right in and continue to run the district until until we have done a superintendent search and hired a superintendent hopefully in October so so to the extent that we could move this along is there I do have a question of the superintendent is there any value in trying to put enacting in like today like right now or does that need to be agenda that would be agenda yeah okay so I'm not because if we have to if we do the timelines et cetera and we don't actually have an in run we need enacting during that yes we do so I think the next board meeting I'd like to propose that we do agenda is enacting selection and thank you Olivia for the for the suggestion I do think it's a good one I think collecting resumes and vetting them to see if people are qualified and we might not get any resumes that's the other thing and we might get a lot we might get none but the good news is we have three candidates already and we just need to move forward in this process so thank you that's the other streamer I think I think we'll leave the way with trustee for instance idea or trustee and costas but I also agree we need to set some parameters I'm talking Michelle I'll bring the sentence otherwise we'll get a lot of unpaused by the same page on this question of interviews it's my hope that we have at least two great candidates that we feel and personally I kind of like the idea of an interview if we have two great candidates at least and while I think the benefit of trying to do interviews early on the 28th we won't have had an opportunity I also like the idea of our applicants on the 28th as a board and saying well here's maybe somebody stands out or maybe there's two I can't predict that but maybe we have two great people who actually say they really want to do it and then that would in my mind I think I would say yeah let's do an interview the following week I understand that's another meeting that's an ideal time of the year but that's my I'm not quite clear if I'm hearing your support so are you saying that you would be okay with you know soliciting the resumes and seeing if there is a clear candidate within those and then you know if we need to do the interview you know yes yes yes yes I just wanted to make sure so it's sounding like you know while there is some variation that the current direction I just wanted to make sure I understand the current direction is that we will solicit you know resumes from people they will be sent to Dr. Rodriguez by 5 p.m. on the 26th on Monday the 26th that we will notify the news outlets and so post it probably on our website that on the 28th we will select and acting superintendent for the since it's an interim but difficult in fact so we'll have an acting we'll appoint an acting superintendent on the 28th that we will determine if we can decide on an interim if we cannot in close session then we will do a interview process with those candidates that we are interested in hearing from if we do have a clear interim that we've decided that we can have the consensus on that we will offer as you know council to negotiate a contract with the goal of appointing that person by the 12th is there anything for the fourth interim can I just make a small suggestion and and I'm willing to be persuaded that it's too cumbersome but I just like the cover letter just feels like it takes the time to make the cover letter resume thank you it was obvious thank you for clarifying that I appreciate that okay so we're good on the interim process right now okay yes one last question so if the deadline is the 26th 5 o'clock can the trustees expect to have those fairly quickly? yeah I'll give it to you by that late evening and just to let you know I call though most of while some of us in this room will be working Monday is June and so because of that we won't have out the pressure lease until the 20th so just wanted so if you're looking for it I just want you to be aware that most staff is not working again cabinet is working but most staff is not working yet so I just wanted to inform you of that thank you I appreciate it alright for the permanent superintendent process you know we have a couple of options as we've discussed you know it's like where people think you're having want to be doing that process do you want to have it be an internal process again with a pros and cons can you go back to that chart of the options so option one district staff conducts the posting search in May who is the district staff will that community comprise it that's exactly why I would not do option one but it would be our HR department so just for transparency of process and just time consuming process really for a district of our size just like you guys use leadership and associates to get me and I was not going to apply from here they tapped me and said hey you should apply similar happened just recently right and so I I would suggest that you do a search firm you can have multiple search firms come and present to the board and you can listen to their processes and say leadership and associates or I like this other one but yeah I mean the problem with option one is also that there could be like accusations of favoritism and non-inclusionary practices versus if you do a search firm even if it's not true right I know that it won't be true but people might say that and so then with option two they don't really have skin in the game of which one it is you just want to get the most qualified candidate and I can't say enough how much they will have access to knowledge of superintendents who are either possibly looking or they think would be a good fit that there's no way that I mean I probably could do it just because I'm connected with suits but I'm not going to be here there's no real way that the current suit versus the firms are going to know that they are they're not cheap though but a district of this size I mean even districts of 3,000 are using search firms I don't really see districts our size not using one and so for option two so they go they go out and contact people or do people contact them? both okay so they look at the pool that they're getting especially if they don't have a good enough pool they'll start tapping people and this is my understanding because this is something that was they aren't or in terms of preventing people from online so if we have people that we know you know and that includes the public includes our stakeholders our staff anyone can apply who is qualified right anyone so this isn't to limit you know if we have good it's not even really there oh yeah I understand but I would like to see that we go on top she too it's my thank you can you get a motion please a good direction just direction just direction yeah thank you Daniel I agree have you been through this process before it's not very it's not very having been through the process before it was really helpful to have an outside agency bring candidates to us that we might have ever thought of or seen in Michelle was one of three finalists that that we interviewed directly and it was a really good process I would also support option two and I'm wondering so if we did have if the the rest of the board members want to go for option two when is the soonest we could have search firms come to the board so the 28th can be a really packed meeting but we could we could reach out to them there's really three law three law firm search firms that really do large scale national searches and so my suggestion would be that you ask the top three to come and present to you all and then generally pick that time if you just listen to their proposals and listen to their process and then you determine which one and then that contract comes back the next board meeting which you could do on the 12th on July 12th we need more choice options as well finally we mentioned that it's been more costly of the two options but we haven't mentioned any costs are we very well so if they do it depending on how intensive you want it to be I'm assuming that you're going to want to have them do community forums do surveys and all that so generally I mean I'm doing it off of something that I just saw but I generally they're about 80,000 it is not it's not cheap but they can go through a really extensive process they help with a posting of the characteristics that they've heard the listing sessions you know they generally if the board can decide but generally what they do is they go through and do their recommended lists and then lately most boards have asked to look at every single application so they see every single application but then they also see their recommendations and then they're generally immediately at the middle and then they also help like if you're going to do a community forum like I had to do so I had I presented in front of 22 people then you may would help organize that get the people there and all that but the more you ask them to do the more expensive it is it's how it works actually about you can address this how would you like to do it? I like options too as well and my understanding is we might have a couple there's multiple firms maybe you want a proposal how would you buy I don't know if that has to happen on the 228th but certainly maybe the next week Vice President Acosta did you get any thoughts? so far I'm fine with everything I heard thank you what is if there is any is there any data about cost benefit analysis to using a firm versus internal is there any formal data about that? I mean it's like I have my I understand it's like I understand it's like okay we want to have the right candidate so to me it makes sense to go for options too because of the long-term benefits of finding the right candidate reducing turnover having less disruption to me that seems like the cost of hiring finding the right candidate to make sure we do a thorough process offsets the cost we would incur from having disruption and maybe not having full candidates that we want because to me it makes sense but do we have data about that? I don't know if any formal data I mean I will say as you mentioned at the beginning of the meeting this is your guys is number one job is to hire the superintendent so and it is just so common I know there's very few big large school districts that don't use a search firm and I don't know that I there's no data out there if you use a search firm if you return the turnover rate is is lower and we'll say you know it's the initiative we're into it and nowadays it's hard so there's a lot of openings and there's a lot of friction going on so I would say a search firm would be even more important now than it would have been like five years ago I think I'm hearing consensus from the board about having a search firm going for option two I would I know for me personally I would like to have the presentation being in this process and so it's possible I would like to have if we can have the presentations on the 20 I would like to see that happen just so that we're not we can have enough time to consider I agree with them as soon as possible and based on those discussions you know the presentation from those firms that will determine the remainder of the process because we'll have an idea of what we can do there might be options that we hear as recommendations from these firms about how to conduct that process that we might not be able to come up with another one so I think the further process of selecting a permanent superintendent will be unfolding and what I do want to reiterate our commitment to having a community and stakeholder input along the way is there any further questions or comments from the board about that then I think we can move on to item 4.2 our budget review and that will be presented by Thank you President Holm Board of Trustees and Dr. Rodriguez and Public Affairs Goliaths I'm kind of like the Chief Business Officer and I'm actually joined as well by Goliath who doesn't fully present but I was able to kind of re-earn to present one last time before she retires and also Jenny Anne who is our new Director of Social Services for those who are not there she actually just started this week so she's starting her week off with a Saturday morning so very welcome very welcome so I appreciate both of you being here Jenny and Goliath should actually review a lot of the presentation that would be that we may hear from these individuals who really have their hands keeping the weeds with their class size staff that work on the budget so to give a quick overview of what we'll be doing today we heard from the Board some items that they really wanted to do a deep dive into so we included those in order to do a deep dive into the budget I think one of the pieces is actually understanding how a smooth district budget works it's much different than private budget it's much different than your at home budget very complicated process that has multiple audits involved with it as local requirements for most encode public contract code we also have requirements for large senior week so we'll look at the budget process overview which includes looking at SACs which is the standardized account code structure that's what the state needs to ensure everything we code is standardized across California so they're able to see that everything we do and say where we are spending dollars is consistent with what the rest of the state is doing in their own process for auditing we also have national and statewide account incentives that we follow fiscal oversight and client measures so if you have a fiscal oversight from Godly we see the state as well as independent auditors who review our books every year and then our own processes so we have processes that have been established internally to ensure that we have those controls you may remember Wednesday night hearing a lot talking about the controls that we have in place and that you've got no problem with them and that we actually have excellent controls in our district those are all determined after district development so those are the ways that we approve POs the way that we ensure that we have a approval process that goes through multiple eyes that you don't have the same person who enters data being the one who's approving it or being the final set of eyes on it those processes also are interpreted by board policies so we follow our board policies that have been established by the board once we kind of look at a process overview we dive into how budgets work why we see budget we'll look at 22, 23 July adopted budget and estimated actuals we have a request of looking at the variances between estimated actuals and budget one thing I'll mention before we get too deep into it is for those who don't know budget and actuals are very different things alright budget is in a perfect world what am I going to spend actuals are what actually happened in my perfect world in the real world I think I take her out maybe once every few months or so she's still here though so I guess I'm okay but yeah so again actuals are what actually happens and unfortunately when we build out a budget we can't foresee somebody coming in at step one or step six I can't foresee if our new superintendent will have family benefits there are things that are beyond our control and that's why you always will see a variance in actuals and Jenny will actually talk about that when she talks about the COE review process in the sense that one of the biggest signs actually abroad is when you see no creation and it's very odd when you say I'm going to spend exactly this much and every single year you spend exactly what you buy it's a little suspicious considering all the factors you have to take so that will be 22.3 adopted our proposed budget that was adopted June of last year and then of course estimated actuals that we just saw Wednesday night then we'll take a look at our 23.24 proposed budget we'll think a little bit about how we build the budget what we do to establish it and one thing I'll mention on that before we get there Colleen, myself, Jenny we are not arguments we are think of us as weird a contact the board human resources the superintendent contracts that come before the board that's argument we build the budget off of that the blueprint so we actually don't come in and talk and say where do we want to spend all this money that's not our job our job is to say we've been given a blueprint we will follow that blueprint one of those major blueprints that we follow is BVST and CSH contract so BVST's contract has class sizes we have to staff based on those class sizes that's how we build our budget so we're more constructing a budget we're not the architects who develop every little piece of it we really build but the board the unions and our districts have established as the leaders so with that I'm going to turn it over to Colleen and Jenny Jenny both Colleen and Jenny Colleen and Jenny I'm going to turn it over to both of them hopefully they won't speak at the same time and we'll jump into budget and accounting and we're letting people mainly have to speak in the world okay okay I get the unfortunate first time after Clinton he's such a great presenter and I'm like are you sure you want me to present? I'm kind of dry so I do want to go over first of all our account code structure because I think that's important to know especially when we use to hear I say open the fours or the fives and they're like what is a four or a five? our account code structure is set by the state this is what we have to follow this is how we classify every penny every dollar of our $400 million budget it has to be this way the thing that I want to focus on is the object code the obj t r it's a four digit and that's where we say what we're buying like the ones what we're going to pay for is certificate salaries our twos are classified salaries so every single number in our account code means something and it helps us stay in compliance with all the rules and regulations that we have to follow and so now I get to turn it over to Jenny who is going to talk about nationwide and statewide all those compliance so no matter Jenny comes from another district but they have to follow this same exact same exact regulations that we do so Jenny thank you good morning President Holm our trustees and after our leaders we will turn it in and we're going to talk about some of our national and statewide accounting standards because we are a governmental entity we have to follow very strict standards and principles related to how we account for our budget and how we do our clinic so all of our accounting standards practices they need to be GAAP compliant GAAP stands for generally exact accounting sorry can you hear me so all of our practices are internal controls for processes need to be GAAP compliant so one GAAP compliant standard that most people have heard about is double entry of a key which is where every transaction is recorded in two or more accounts so we might have heard the term debit and a credit so all of these purposes the purpose of it is to provide for greater accuracy transparency and clarity so because we are a governmental entity these GAAP compliant measures are enforced by the as before our governmental accounting standards board and there the authority of standard spending quality so every year what we do is how we are supposed to capture those financial impacts in our statements and other points you might have heard the term which is a financial accounting standards board so they govern most of our publicly trade companies the reason why there's two different standards boards in the U.S. is because so as a school our services really to our students and to the community a publicly trade a company their purpose is to make a profit so those are very two different underlying principles and why we have two different standard boards and how we need to show our financial statements to our so as a governmental entity we have three unique standards or accounting standards that we need to follow so the first is our basis of accounting what that means the basis of accounting means is the timing of when transactions and events are captured in our financial statements so in governmental accounting or school accounting we do a modified approval or can I hear of it as modified approval basis of available and measurable the California Department of Education gives schools one year to basically collect on what we consider available and measurable for expenditures that means that we recognize expenses when they are incurred regardless of when the actual payment is made so this is going to impact everything from how we recognize expenses for projects goods and supplies that we order in the year of when we're actually recognizing the expense in our actual and also with that and Colleen will go more into how that impacts our environment and our environment later on the second standard that's meaning to schools and governmental entities is fund accounting basically means that like transactions those like transactions usually follow similar regulations and standards so most of our general fund for example they're grouped together into one fund they're self-balancing meaning when you look at that double line tree bookkeeping I talked about it's a self-balancing so books all the dividends and credits are captured into that one fund there's a starting balance there's many types of funds there's governmental funds which are general funds bill ed funds school nutrition we also have something called fiduciary funds and proprietary funds and they all have different rules and regulations of how to account for transactions and funds and the third unique standard for governmental accounting is budgetary accounting so this is when we look at our budget cycle the year we have the proposed budget we have the interim first interim captures all transactions and events through October 31st second interim through the end of January and then we have estimated actuals and then we close up on other actuals the whole purpose of having a budgetary cycle is to meet people to capture all the changes that come from the state and federal governments because so because so much of our funding is dependent on taxes and from funding from the state and federal level it's going to change that year so budgetary accounting enables us to capture those changes and report them to our board to the decision makers and to the community in a very transparent and timely manner there's a saying in budgeting that as soon as you're done with the budget it talks a week because those planning factors and assumptions and the events of what's happening are changing so quickly this way of accounting for what's happening enables us to stay nimble and to keep all of you informed of what's happening and I wanted to talk a little bit about the fiscal oversight and compliance measures that as a school district were subject to most of my time in school business is actually at the county office level I worked at both the Santa Cruz County Office of Education and the Sonoma County Office of Education for writing EP12 and their oversight so I'll talk a little bit more about what the process looks like so before we even get into the first level of fiscal oversight the foundation of that is really going to be our own internal controls and processes so this is kind of what we talked about of having separation of duties having established practices knowing what our best practices and procedures are making sure that one person who's entering a let's say a particular position is not the same person making the payment so all of those encompasses what our internal controls are the first level of fiscal oversight is really the school board as an administration when you look at school districts to have experience fiscal insolvency or gone into the school districts what happens is when the state comes in with the fiscal crisis management assistance team they really they really sit down with the board and kind of have the board understand that that's the first level the budgets are coming to the board for approval all of our contracts come to the board for approval you're setting the direction for the district you're setting kind of what our goals and initiatives are through that cap and that the board needs to clear all of our warrants court disorders acquisitions also come through the board as well the second level is that the Santa Cruz County Office of Education maybe 1200 presidents or somebody built 1200 that went into the 19 92 and what the purpose of that is to have the county office greater over time control and to have the county office work more in collaboration with the districts to provide that oversight so at the county office level what they do is they look at all of our adopted budgets interim budgets and are on the actual small bonus they look at our revenue projections they look at our expenditure projections how we are accounting for salaries benefits they're looking at our assumptions and our planning factors and they're making sure that what we're saying in the current year they're always looking at two years out so for three years then we can make sure that we're able to meet our financial obligations even within the county office level there's multiple levels of oversight so first the financial analyst will do their review and then it goes to the executive director of external business services and then to the superintendent of women's services and then the final approval on the budget comes from the county superintendent who is that person they also look at our attendance is very important because our UDA of course drives so much of our funding they look at review and approve our LCAP and also our public disclosures which show the financial impact with any bargaining unit review needs and then the third level is going to be our annual audit by the independent auditors so you've got to look at our internal controls because we have closed them and they have not been audited yet so the independent auditor comes in after the fact and what they do is they're looking at our internal controls so they're coming in they're conducting interviews of staff and management of all sorts of transactions so they're pulling samples of payroll of purchase orders of payments of general injuries budget transfers and they're revealing those to make sure that they're not only accurate but that we've collected all of the appropriate backup information that's acquired by the students so it's pretty it's a pretty rigorous process and the independent control they have to be certified to be or to be affirmed that have also been approved by the state control or so not any auditor can come in and audit schools they need to be specially approved to report schools so as you can see it's a very very rigorous process in addition to those reviews we also have additional it's going to be monitoring from the California Department of Education federal program monitoring office so usually they're coming in and they're looking at all of the federal programs so usually it's entitled programs and then we feature that we're following all the guidelines of how we're supposed to be always as funds making sure that we're providing equitable services and that we're counting for the revenue expenditures there are also procurement audits we're coming in and looking at how we are looking at our contracts of procurement there's different levels based on usually the dollar amount the high of the dollar amount there are more restrictions that are there's also expenditure reporting from most of our state and federal programs as well as maintenance of reporting so as you can see there's a lot of checks and balances put into place for eventual reports about the weeds which cited about we've been wanting to give this kind of training but I'm also concerned because it's like putting a motion into an aquarium there's a lot of information and I hope I can touch on everything so I want to talk about in general how we're funded we're funded through apportionments entitlements and grants that's how we're funded apportionments it's generally our unrestricted funding that's our LCAP money that you hear it's our taxes it's EPA it's all those funds that comes in as an apportionment and it's mainly driven by enrollment ADA unduplicated count there's a lot of things that go into the estimates of an apportionment then we also have entitlements and entitlements are more like our lottery funds our unrestricted lottery funds entitlements can be both unrestricted or restricted depending on where we receive those entitlements from and they're usually earned so it's based on again our ADA or our student counts or sometimes student population and what we get is we get it whether we spend it or not that's basically an entitlement and it's usually paid in increments so like we could get the 50% of that entitlement entitlement without spending the money and we just get that entitlement and then they usually pay it in increments out then there's our grants and our grants are 99% of the time restricted money and that can be from the federal the state or local grants grants are usually competitive so we have to go out and apply for it and grants can also be the way that we spend them is donor driven so the donor whoever we're replying for the grant from tells us how we can spend those funds and it's usually based on reporting we have to report out on the grants on how we spend it and that's usually how they pay it in and it is most of the time as Jenny stated earlier touched on it's under revenue so we can lose this if we don't spend it in the time frame that they gave it to us so that's the monitoring that also we get from the program people that gave us the money so the next thing I wanted to talk about for the apportionments the grants and entitlements is where do you see these in our budgets and present budgets to you and why does I hear a lot you know we fluctuate so I want to touch on why those fluctuations happen the first one I want to talk about is the apportionments so if you have your sex binder with you I would love for you to turn to page 3 if you don't it's okay but page 3 we that's where we have our multi-year spreadsheet and alright that is usually the first thing if you could just pause for a second and tell them which one of the items is it that was the title of the item it's page 3 and your sex binder it's the proposed budget it's the spreadsheet I'm sorry I didn't have a full copy of the spreadsheet on the slide I apologize it's the one that Scouts looking at right now on here we the rest oh 23 23 24 proposed budget and unestimated that's what I think I just want to make sure thank you alright so if you look on the top there you see our income and then very first line state else sources that's where you're going to see our apportionment money and in there that's where we estimate we budget our apportionment and again it's based on our enrollment our attendance our our grade span our transitional kinder it's unduplicated count and it's our anticipated pull-up so all of that goes into this figure and then the next thing why does that figure fluctuate we see from first interim to second interim it fluctuates and that's because we do reporting we do what you may have heard our p1 or p2 it's our attendance reporting and then the state re-evaluates and certifies that at different periods of time so as you can see there's March and February and October and this line right here you can see the fluctuation in dollar amounts and so that's when we would report those changes we would report it at first interim you'll see a change at second interim because we've reported out our p1 or p2 attendance data and that's where you'll see that also I want to direct you to down this sheet and this spreadsheet here comes from our county office of ed they vet our portion and then they send it over to us because they have to put it in our account and so if I can direct you to the yellow portion the yellow portion shows prior year adjustments the state has the discretion to go in after they close their books and re-evaluate prior years there's no way for us to budget for that or to know the time until we get these spreadsheets after they've certified each of their reporting periods and as you can see it can be it can be up to a million dollars we could have more we could have less and that's another reason why you'll see the fluctuation in that portion area so the next thing I want to talk about is entitlements where do we see entitlements on that sheet and I do want to give you back up a little bit I'm sorry that spreadsheet that spreadsheet is just a culmination of everything that you get behind everything in that sax finder so what we try to do is we make this spreadsheet so it is a summary of all those hundred pages you're welcome to read all the hundred pages but if you add them up they will match this spreadsheet and this spreadsheet is just a little summary okay going back to entitlements so remember entitlements we earned those and where do I see entitlements well you're going to see entitlements in the state and it can be restricted or unrestricted money so we can get entitlements like I said our lottery funds our unrestricted lottery funds you're going to see in the unrestricted state money then we can also we also have unrestricted local revenue which is our mod planes our Medi-Cal administrative activity claims and again those will fluctuate their claims they're based on services that we provide to students that need them so we don't have any way we can kind of make an educated guess on how many students we think we're going to provide in a year but it's the budget and the activities for living students so things change all the time so we also can get restricted state money in an entitlement which is our ELOP money is a restricted entitlement that we get and then we also can get local restricted money why do those numbers fluctuate well most entitlements are based on our ADA or pupil accounts and that fluctuates with our reporting so our entitlements can also fluctuate so that's why you will see fluctuations from first interim to second interim and to actuals because we budget what we anticipate getting but when we get to our estimated actuals that's what we actually receive so we're looking at totally different numbers what do we anticipate getting and we budget that what do we actually get and then that will be a different number in our estimated actuals so that's why it's really hard to compare proposed budget to estimated actuals so the next thing we want to go through is sorry I want to go through how it's accounted for and why you see that fluctuation between proposed budget and estimated actuals so when we're closing the books that proposed budget we budgeted the dollar amount that we thought we were going to get and this form right here is called a J39 year cap form and it's a state form that our auditors ask us for this they audit this they look at it and they compare it like Jenny was saying a sampling they take a sampling of every one it's a program that our staff works on on these particular forms so this one I just happened to pull a year of educator effect in this funds and so this was our award this was our actual what we actually received this is here our expenditure so the 700,000 is what we actually spend and so this part right here the 4.0 or 9 4.9 is going to be in our and be restricted ending fund balance that's what we didn't spend and as you know with the educator effect in this funds it's multi-year so that $4 million is restricted money for a purpose because we have to take that money and spent budgeted in the next year and budgeted you know into the following or however long it takes that we have to spend those funds also you're going to see a difference in actuals because we'll only budget what we actually receive in estimated account budget I'm sorry in estimated actuals you're only going to see in the revenue what we actually receive so it's going to we thought we were going to or what we would have spent to what we actually receive and what we actually spend and the other thing that kind of effect this is vacancies if we budgeted people there then what federally budgeted obviously your actuals are going to be different than what you budgeted so you're going to see a fluctuation of variance there and at each interim it's going to be a different dollar amount so let's go to grants the final way that we receive funding and you're going to see that and you're going to grants are restricted revenue you're only going to see grants in this one column here you're total restricted money and we can get federal grants we can get state grants we can get local grants and the way that we account for donations we account for them as a grant because it's the donors discretion they can tell us how we can spend that money and so we account for it as a grant so some examples of our grants at our district our federal grant we have that's title one an excerpt those are recorded as grants we have CTIC which is a very large it's part of our CTE program that is a state grant and then local are like school donations or our strong workforce program SWP that is recorded in the local restricted money so you're going to see all these variances in the revenues here let's look let's talk a little bit about why grants fluctuate so federal grants that we receive as you know federal government is on a different fiscal year than we are they go from October through September so they close their books at a different time than we do and then when they say oh we have extra money or oh we overspent then they tell us oh we're going to amend how much we said we were going to give you and that usually happens in October or November and that can be either at first if we show it to you at first interim or we show it to you at second interim but that would be one of the reasons why like our title one or any of our federal grants would fluctuate with state and local we have a grant writer a wonderful grant writer who will go out and get us money but those grants aren't always awarded after the beginning of the fiscal year so we can't put them always in for post budget they might come in later they can or they might end at another time they can say you have six months to spend this grant you have three months to spend this grant so you might say see the grant money go up and then we didn't spend it so you're going to see based on the grants that we get you're going to see a fluctuation it's always changing we didn't do grants if they get taken away we'll not take away we don't earn and we don't spend them and let me tell you that doesn't our staff is very good at their jobs and they spend every penny we get most of the time as long as they can and then local donations of course we don't ever know when someone's gonna say hey here's some money and so once they say here's some money we say we'll take it and then we throw it into the budget and again grants we have to use the cap form or the J390 to when we go and close books and account for these monies so this just happens to be a sample of Title I you can see where our carryover came in prior your carryover you can see our current award you can see what we actually received was this amount and that amount as you can see it's more than our current amount if you look on this sample you can see we received five million dollars but our current your award is only four million that includes some of the carryover that un-earned revenue that un-earned revenue is going to go from the prior year that we didn't earn it and it's going to come over into the current year so to speak so again actuals and budget then we have our total expenditures and then if you come down here you can see this is our total expenditures and the difference between what we are allowed to spend which is our carryover and our current award and what we actually spend the difference is two million dollars well if you see how much we spend we spent 4.8 that is more than what we were awarded at the 4.6 so guess what we're spending carryover weird deficit spending in a program but that's because we know we purposely have carryover going into the next year to continue to pay and then as that savings account goes down that one time starts going down we have to alter and say okay now Michael Berman you're the program manager we don't do it in a in a bag and we don't do it and then sit behind those doors and say let's put some money in our account we have to be with Berman he's like poor title loan we would sit with the whole department Michael Berman Jessica Costa and we would say okay we are getting low on this carryover weird deficit spending how are we going to write this shit and we have hundreds hundreds of programs that we do this with so we have staff that is constantly learning going to webinars going on CDE website finding out this stuff ahead of time so it doesn't shock us and we're like at the end oh my goodness what are we going to do with a negative we're overspending here we know three years in advance that's why we have our multi-year three-year plan another reason why we bring it so we know ahead of time what we're running into okay so now we've gone over how we're funded and how actuals look where do some of the object fluctuations remember I told you objects are services supplies staffing you know certificate classified and benefits all of that is when you hear me say object that's what I'm talking about is our our supplies and our services okay so the first scenario I want to talk about is why we have fluctuations sometimes between our fours and our fives and this is just a small sampling I mean as I have been reiterating there's hundreds we have millions of dollars that we are trying to keep an eye on and so I just kind of we wanted to bring it down and have a smaller sampling just for the understanding of it so we're going to talk a little bit about student incentives so a principal may come to his site council and say okay some of our money the site council does should be going through their budget and establishing a budget that just looks like right so he says I'm going to spend those monies on student incentives this year I want to get kids come into school more and so instantly you would think student incentives and supplies right at 4,000 we're going to go on a field trip so we're going to buy tickets to a movie and we're going to buy them sweatshirts and we're going to you know do some kind of celebration for them so they budget the money in their fours well it comes around and they say oh we're going to we're going to buy printed here printed here is not a 4,000 according to our c-sam our gap printed here is custom here and is a 5,000 so even though it says services anything off the shelf you go into a store you buy something off the shelf that's a 4,000 that's a supply the minute you order something and it requires printing it becomes a 5,000 in a service service even though we're getting something tangible it's still coded in a 5,000 so and then at a celebration if you go to St. Mark and you buy food off the any kind of drink or food off the shelf that's a 4,000 the minute that you order food it becomes a 5,000 it's a service so all those little intricacies the staff feels that the staff is always on the phone with the school site saying oh what kind of student incentives are you looking at what are you they might say well we changed our minds we changed the staff celebration instead of buying new pencils then we moved the budget from a 4 to a 5 and you're going to see those fluctuations in your in the interim when that happens so for instance you'd see 2,000,000 in supplies and then all of a sudden these things happen you're going to see a dip in your 4s and then increasing your 5s and the next thing I want to talk about is negotiations so let's say classified salaries are 27 million and then we know we're in negotiations and we put money out on the table when we put that money out on the table and say okay we'll give you this kind of raise whatever we have to budget that because we can't put money out there that we can't budget so we and let's say for this scenario we said 3 million dollars was an anticipated we figure let's put a raise out there it's going to cost us 3 million dollars so in 22,23 budgets we have 30 million dollars 27 regular 3 million of an anticipated raise at 22,23 when we're closing the books uh oh we haven't settled negotiations so we didn't spend that 3 million so now actuals goes down to 27 million but the the um proposal is still out on the table so guess what in 23,24 we have to budget the 30 plus the 3 so now in 23,24 if people are comparing actuals to proposed budgets they're going to say oh my gosh you had a 10 dollar variance in your classified what are you guys doing? well we really didn't have a variance we're still at that same amount but now we have to pull that 3 million from the prior year budget and put it into the current year budget so there's you know there's really not those huge fluctuations there's purpose behind them and this particular scenario statutory taxes which is in your 3,000s it's a different line item that's also going to fluctuate comparison then sorry one more scenario so we this is a fluctuation in a same budget from your year also so we budget in 23,24 let's say we budget 7 million dollars and of that 7 million dollars 3 million is from books because we order them in December well the supplier says yes it should take 5 months to get to your your from books we're all in back order but we'll get them to you before June great well June starts rolling around and the supplier says oh sorry we can't shoot that 3 million until the delivery date won't be until July 1st it won't be before June 30th oh okay our actuals then are only 4 million because that 3 million in from books even though we ordered them and we got in July 1st that 3 million now has to move into the next year to pay for those from books that we got on July 1st so again that fluctuation is going to look like oh you went from 4 million over 10 million because we had the 7 million plus the 3 million over from books so they're like 6 million dollars you have increased your supply 6 million dollars from one year to the next that's not really what happened we had to move the budget to the new year because we've received those goods in the new year when we thought we were going to receive them so that's where you're going to see the fluctuation and I wanted to also talk about when we talk about these fluctuations they're not done in a vacuum right when someone when a site or a program manager does their budget they sit and they have community members usually they have their sipses they have to follow there looks like plans they have to follow then when they go to spend the money that PO has run through purchasing and their staff and finance and their staff and finance on all of these programs any dollar of any dollar that gets spent has to go through an approval path and then let's say once we spend the money it goes through the accounting department and they audit it so one why do you have that so the life cycle of an expenditure is from inception of a budget to spending through purchasing to the payment through accounting so it goes through many different approval paths and that's just a service we're not even talking about staffing that goes through all another life cycle so I did want to talk about vacuum life spending and then the last thing I want to touch on is our reserves and our ending fund balance and I know that I'm so sorry I don't remember which trust we brought it up but I'm talking about our ending reserve and you know why do we have that amount so our 3% state-required reserve is for what they say economic uncertainty they're not necessarily just talking about a pandemic or the stock market ration we're talking about things that have happened in the last five years also the girls so the state comes and says I'm going to give you your apportionment in a monthly increment but we're short on cash so that month you were supposed to get in that monthly approval that you were supposed to get in but we're not going to pay you so many but we still have payroll we have to pay and we still have utilities and mortgage and insurance just like everybody else and so that 3% definitely helps there it also helps with mid-year cuts we see those because anybody who's been in education for a long time knows that and so this is also why we have it I also want to talk about the dollar amount that we have the 3% is 10 million dollars our monthly payroll cost monthly payroll cost is 16 million dollars that's monthly payroll cost is about 16 million dollars our 3% reserve doesn't even cover so with that I kind of want to plug into the thank you board for committing that little extra that you guys committed some time ago because now that's about $6 million not even 3% now 3% now on our budget is 10 million that long time ago 3% commitment that you guys set aside to help us out that did help us go where the girls when we 10 10 million 3% and 16 million that'll probably get us through what they want which is the most important thing we can always push people's opportunities but we can't push people's salaries so anyway I did want to grade on that and I want to talk about someone asked about what the average unified districts available reserves are according to Dick Natt which is a digital crisis management assistance team according to them in 2021 the average was 22.36% the USP was at as well so I know that we're dealing with people see $42 million dollars $42 million isn't that much in a $400 million budget and when we have $16 million that we have to pay to staff we have to really we can't think of it in terms of our income what we make we really have to think of it in terms of the business and how it is in perspective and then the last thing I want to touch on this is our ending fund balance and our net change so if you look at that spreadsheet again multi-year projection spreadsheet and you find the row that says net increase decrease in fund balance it's about $3 million that is our deficit spending that is the difference between what we bring in our income and what we spend what's going out so when we look at our unappropriated fund balance and what the difference is between the unappropriated balance and our $42 million ending fund balance that ending fund balance includes some inventory so it's not tangible dollars that we have that ending fund balance includes our storage inventory it includes our revolving it includes the 3% required it includes our commitments what we have to really be looking at is that unappropriated fund balance that $15 million because that's really the amount that we that's our savings that's the piece right there that that $3 million that we're over spending I mean deficit spending means over spending that $3 million that we're over spending has to come out of that $15 it comes out year after year if we continue to continue and as you'll see that balance will go down if we continue to deficit spend if we continue to spend more outgoing than we have incoming that money is going to continually go down that's why we are three year multi-year projection so we know oh we need to do something by year three or we need to do something by this year and that's how we've been considering I mean your cuts or anything that we don't know about because I know Clint and I don't have a crystal ball and I don't know about Jenny yet she may have one but we don't we budget on what we know today and that's how we budget out we don't try to project or we don't try to interject our feelings or our vibes we project out what we know right now to get a clearer perspective on the ending well thank you Colleen so for those of you who now wonder why Colleen said she doesn't present well you can see as I do I don't know why she continues to know that I feel like for the past three years and I feel like she's tricked me for three years and they're not having to present board meetings because she said she's not good at it I'm sure everyone learned something because I know there's a lot of school experience speaking of the board so I appreciate everything she brings to the table just to touch on one piece on this I'll do a quick little bit of math so if you look at that ending time balance 42 million so what happens often is we hear people say well why can't we afford this argument look how much time balance we look at that 42 million so all I'm asking for is a raise that's going to cost you 6 million dollars for seven years for seven years you can afford that we'll figure it out in year eight but do it for seven years when in reality you look at that unappropriated that's really what we can't spend so what happens is we get this vision I got 42 million to spend I just committed 6 million dollars in two years I spent 12 I'm down to 3 million that third year I'm getting into my three percent preserve which means we're going to qualify and then probably make it in our fourth year Cohen and he requires requires us to do one year plus two we always have to look out two years past our next year Cohen will tell you Jenny will probably tell you we really wish we could live in that world I think about 27, 28, 28, 29 those are the years that keep me out of that life the three year that's a little bit easier but it's really those tough years because I know when I see a trend when I see a trend of finding moment when I see a trend of the state that increases increases I know we'll be okay until 25, 26 and we'll be okay until 27 27, 28 is where I start to step and where I'm trying to look at I don't want to get ever to the point where we're making rash decisions where I'm coming to the board and saying you guys have one year to figure this out what do you want me to do I want to educate and say I'm going to need three years I'm letting you know three years from now I'm going to give you a little bit of ideas because that is such a really good plan and think really carefully about what we're doing and how we're spending those hours so again thank you so much thank you Jenny I hope everybody kind of has got that picture of how do you think divide and hopefully it'll help when we go in 2.2.3 dry it up she mentions this to me, it always is almost like a light bulb in my head. When she says, there's a point where when you look at adult verse actuals, words, our estimates are actually exactly right. We said we are supposed to get $5.9 million in revenue. But this thing says, yeah, but we're only giving you five right now. We'll give you the other nine, the other $900,000, but you're not getting it right now. There's nothing we can do about that. But when we look at actuals and we put in what we actually received, we don't get to say, well, we're just going to say we received five right now. We have to actually show an increase. So some of those decreases are completely out of our control. Even if we have a crystal ball in terms of what we will spend, the snake can at any time design a change in their mind on what they'll give us. So I want to jump into and sit small. I apologize. When I'm looking at it on my computer screen, that's like, you know, 12 inches in front of me, it's quite large and I have good eyes. Hopefully you have it there on your screens and are able to see it as well. I want to just kind of look at some of the variances that we see from proposed budget to estimated actuals. So slide number 26 on the slide. Everyone have it? Sorry, but I guess shouldn't help for a second. So what I want to look at is some of the big shifts. So we look at estimated actuals to, again, our proposed budget. Remember, we're looking at July of 2022 to June of 2020. We have had a full year almost go by and we're trying to say, did we estimate accurately almost 365 days ago? Did we nail it perfectly on the head? No. And we never did. And like I said, if the word ever sees where we did nail it, whether it's me as a CEO or someone in the future, I would definitely hold on to my shit. How are you that perfect with a year in advance? Because if you are, then we have some lot of tickets to buy and we should probably go out right now and give them. So when I look at this, I'm going to point out the ones that kind of stand out to me. So revenue, that 20 million shift, that's a huge shift. It's an explainable shift, but it's a large shift. So I understand if you look at this, if a company comes in and looks at a budget and says, wow, look, they were $20 million. How are they $20 million talking? I'll get to it and I'll explain it. And once you see it, you're going to actually say, $20 million is really explainable and actually makes sense. And really, they, throughout the year, they showed it to us, they were transparent, they were transparent to the public that this shift is happening. Certificate and classified salaries. You can see really with certificate salaries, about 2% classified, a little bit more. You have almost like a 10% shift there. Classified salaries was a retro. It was settling and paying out a retro. We did not think we would pay out in that year. When we built this budget in June, we didn't know that was going to happen. Built that first interim, that was included in the budget. So we updated it as we went through and said, as Tony noted, we're negotiating, we're talking to the board before the session and say, hey, we want to offer this. I'm going back to Tony and saying, let's put this in the retro. Let's make sure because if we don't, you may remember as I present those public disclosures and we only say we don't have a budget provision because we put it in there. Otherwise, we have to actually bring another budget provision to the board and say, now that we're agreeing to this, we have to make changes. We always want to try to avoid that because it just adds more complexity to the process, delays in negotiations with the units that we never work with. Employee benefits. That's a tough one. That's one of the ones I mentioned before. I never know if I'm going to hire somebody and they're going to do single or things. So we always budget about in the mid-range, two-party. That's, some will pick family, some will pick single. If we get ten employees and they all pick single, we see a savings in that in those benefits. We also see savings from vacancies, as Tony mentioned. If we aren't paying salaries, we're not paying statuaries. So by and by the chair, all of those pieces that we have to pay on top of our salaries. You see a shift in books and supplies? Tony mentioned some of that. A little bit of that is those shifts of, well, I was getting food for staff and I thought it was 4,000, but I had that ordering pizza and now it's a 5,000 and suddenly we have three. Small shift. Plain always likes to tell me, because whenever I look at members of the pair, I'll say, Plain cut does not make sense to me. Five million is a lot of money. Children are like, hey, it's debt by paper cuts. My point, it can't be debt by paper cuts. And we'll bring up budget and you'll be like, there's 50,000, there's 70,000, there's 20,000, there's 100,000. You're like, we're up to a quarter of a million dollars and we've been here for two minutes looking at changes. So it really is. I mean, when you have 32 school sites that all have their own budgets and they all end up being off by 50,000 dollars, it's $1.6 million, just in school site budget. So it does definitely happen when we do see those shifts. But I'll go a little bit more into detail on those and I do want to show throughout the year how we have come in. Our other uses, again, that was just a small shift in our POPs. It's not the cutting major. Total transfers, again, we have contributions, as you all heard, on Wednesday to special education. Was special education as they can see? Not those dollars savings come from general fund because we don't do as much in transfer or contribution to that fund. And then our beginning balance as Tony mentioned, we're truing up estimated actually what we think we're going to spend. That's what you see in proposed budget. Now, as we got on the phone with that vendor and they said, I 100% guarantee you, we just shipped out the laptops. They're getting their June 1st. Suddenly there's a snow storm in Chicago and they're like, June 1st is more like July 1st. Well, our best guess at estimated actuals was, we are definitely going to get those. We're going to spend that money. If we don't, it changes our ending fund balance, which changes our ending fund balance. And then our ending fund balance on the change of $60 million, again, large number, but I will explain kind of where we went with that, how we showed the board at throughout the year, and what that made change really was. Doesn't help that I didn't see something new. Okay, so let's start with revenue. So on June 8th we proposed the revenue of $217 million for those of you who remember, I always remember because I love doing kind of presentations and maybe I just love getting myself to speak because I'm like, everybody must remember what I said. But I explained at that time very clearly that we did not put in the home to school transmission or the SNA code. I mentioned before, we're going to bring it back at 45 days with you guys. We are going to do one when we give an update. I didn't feel comfortable putting it in there because we had really three big question marks of what the government really saw. Would we do that extra code? Would we do home to school and would we do the ADA? I placed my bet on the most likely one which was ADA. So we included ADA for these in our budget. We didn't include the extra COLA or the home to school funding because I really wasn't sure where they were going. Thankfully both ended up happening. So you can see on August 10th of 2022 we prevented 45 day advice. I actually mentioned that we include now the COLA and home to school transmission major funding. Increased our revenue up to $232 million. So within really 32 days the board had been updated to say it's not 217 it's 232. Now we're still off. We're still getting into what we actually had back. But you can see that now is $6 million. So within 45 days of approving budget the board had gotten an update. This is actually where we're at in Arizona. On December 7th we did second interim. Our first interim, excuse me, what we found in the first interim, to Colleen and I's shock, our unduplicated percentage check on. So unduplicated people percentage which is our growing time, our foster youth, our students in transition. Those students, the percentage we had in our district ended up increasing. A large part of that, I think I spoke to it during the first interim is Dr. Yvonne Hauptraus did an amazing job of really ensuring that they were capturing all that data. But when Colleen and I looked at it, it was higher than a week and a year. So to say that we could have budgeted that and planned for that $2 million increase or about the $1.2 million increase, there's no way. We budgeted what we thought we would be at based on historic, what we've seen historically. That was a big change. But we did mention to the board on December 7th, so we had a person there trying to update as we go. As I had mentioned earlier and Jenny and I talked about this week, one of the things she was trained to always look at is that that first interim, that things are changing. And that's exactly what we're trying to show the board is yes, things are going to change. They should change. And you should be looking out for the changes as we present. At second interim, we actually got to issue a new TK funding that they included. We got what our estimates would be for that. So we wanted to include it in the budget. That increased another about $1.2 million. We got that $2.35. So now again by March, we're now going to get off about $3 million from what we ended up at in our estimated actual. So again showing the board along the way how these changes are coming across. And then June 14th when we did estimated actuals. This is one of those ones that I think Colleen was trying to speak to when she talked about there's no way to predict this. We ended up receiving a strong workforce program. That's not something we can say we guarantee we're going to get. We know the dollar amount. There's no way that proposed budget. We couldn't put that in the budget. We don't know what the dollar amount's going to be. We don't know if we're going to get the full dollar amount or if we'll get the grant. We got it. And it increased it by about $3 million. So just to give the board a little bit of a breakdown of you're right. If you look at proposed budget that's made actuals a year stand, you're going to see big changes. What you should expect to see is through each interim period and 45 days realize that I'm giving you an update showing you why we're having these changes and explaining why these changes. So for now we're looking at $4,000 for oh yeah, I'm not clicking the button. I'm just not going to click him with this button. Sorry, so $4,000 so I talked about it. That was another one I wanted to dive into a little bit. It is a bit of a change. So June 8th again we budget the majority of our site funding in those four houses. The reason is there's no way to know where they're really going to spend them. They could be in the fours, could be in the fives. We could split it in a different way. No matter where we put it there's going to be fluctuations somewhere. Where you're going to estimate fives now or you're going to underestimate fours. So we actually have about $4,000 in that where we usually put it to show this is site budgets. They could move that to staff. They could say we did an extra training day and we wanted some staff to come in. So that's where we moved in so much. There's no way of knowing because again when we're building our budgets the sites are also trying to build their site budget work on their site plans. We can't wait for them to finish theirs to be able to get our budget based on the time on the state. In August 10th that was 45 day revised. As I mentioned in 45 day revised report all we ever really show is big material changes in 45 day revised. Typically changes that come from the states approval of the budget. Not changes that before. In the first ten or second year in 45 day revised. Those are at the time we've made big changes to the budget. Those are updates on the budget that's already improved. So as expected of that one time you don't see any changes because we have no data. We haven't really started in the air. We don't know where we're spending dollars. So only changes you see typically are through revenue and then potentially expect. So you would have seen in 45 day revised that increase through salaries because once we knew we were doing that extra pull up we budgeted where we wanted to spend the money which was salaries. So we got an extra pull up put it for the salary. So that's what we did at 45 day revised. Other than that none of our other areas changed because we weren't making any changes in the budget. On December 7th first interval was updated with anticipated site expenditures. So we have updates of where some of theirs were going based on PO's they haven't put in or EWR's which are our extra work requests for putting in. We also get carried. So as Tony mentioned we always get carried over from what was kind of spent the Friday. We don't ever budget carry over because you run into a problem where if I say I have a million dollars left over and I have my estimated actuals and I say I'm going to try and spend that money. If I say but I also think I'm going to carry that money over. I'm accounting for it twice. I'm saying I'm going to spend it but I'm also going to carry it over. So you have to put it in one place. Based on our estimated actuals based on what we think we're going to spend, what we don't spend we carry it. We never budget carry over because until we know what it is again we will be taking a guess and we'd say I'm going to put in a dollar enough that really I have no left over and we would never do that. So once the carryover comes in we have more restricted dollars so we end up moving some of our unrestricted expenditures. Once I understand we have this contact we wouldn't have to do it no matter what but now we're going to do it back to restricted. That's ESSA whether it's Title I. As I've mentioned I know trustee scowl and trustee forest both remember where I talked about how we spend our dollars right. The first thing we always want to spend is restricted dollars. One that restricted is always your first spending trip. So that's why you see us shift if we can lose off the unrestricted to restricted especially restricted one that we always do because we want to spend those dollars first because they're the hardest to spend. After December 7th we went to March 8th where we once again so again that big shift a while back was to moving it to restricted so you can see an increase in restricted in those areas. March 8th our second in-run we actually updated it again to 6.8 so it lost about 700,000 in anticipated expenditures and then June 14th estimated actuals we ended up closing out purchase orders again. We put a purchase order sometimes we're estimating we're going to buy this it's going to be actually only ship us half of it so that's really what we pay for so when we close out our PO's we end up seeing the decreases based on just what we actually spent. But as you can see the shift from second in-run decimate actuals was really about 109 pounds. So again as we get closer to estimated actuals you see those declines as we go more throughout the year. Okay so next up our 5,000's so again as I mentioned in the 4,000's the sites typically we budget in the 4,000's so you're going to see that shift 45 day revised again not the time to make those changes. Second in-run our first in-run we moved a lot of unrestricted to carry over where we took. So the same thing we did with the 4's we're going to do with the 5's. We're going to move it to restricted when we can to try and spend up those restricted dollars. In second in-run we're once again recognizing site legend it's moving more 4's to 5's you can see again that what ends up happening is we actually had a decrease down to 10 million because we thought okay we're moving to restricted. What ends up happening is then it's going to go through, other contracts come in, they come in too high restricted runs out. So now we say okay we have to move it back to where it actually originated which was in the unrestricted budget. So I moved to 13 and then as we get back we reconcile and it moves up to 18. Now 18 might seem like that's a big jump it's a big jump from March to June. 3 million of that is poverty. So unfortunately as you all are aware poverty will still flood it. We have to do a contract as soon as possible to get someone in there to start acting in the process. There's a 3 million dollar contract. Again nothing we ever anticipated happening to that school but it did make for a giant shift. So that ending fund balance so ending fund balance again that jumped up to 16 million. So if you remember looking back at the proposed budget we were estimating that we were actually going to be deficit spending about 9 million dollars. We, some of that was one time payments that we were budgeting. Definitely never want to be deficit spending especially multi years out. So when we got that additional for that home to school transportation money some of that went to fund those increases in hers, the increases to step in column for employees as well as help them out for increases. So it actually helped us kind of right size by getting that additional column as well as that behavior. In August we ended up adding back in that home to school and as I mentioned the column. So what happened is rather than spending 9 million dollars we ended up actually coming back up to being a little closer to not being deficit spending which means we went from 30 million to 39. So if you look at that ending fund balance of 46 million estimated, we're now in about 7 million dollars. You look at the proposed budget we were about 16 so it seemed like a big jump but really by again August 10 we're going to be giving the board an update that we're a lot higher than we actually could. But again, plan that as we did. We really made that clear on June 8th that we knew something wasn't changed on June 15th. First in a run we ended up adding in one hand payments we remember as we were going through negotiations we kept talking about the different dollar amounts we could offer once we ended up offering additional. Once we ended up adding the budget and seeing where we were coming in we increased the one hand payments that we offered to CSCA so we actually increased salaries there which ended up decreasing on a new fund. March 8th when we looked at the second in a run we ended up in truing up our vacancies as we do every single in a run and really second in a run is a big one. First in a run you don't see a whole lot because really first in a run is only through October so we only have savings for vacancies about two months. Really a month and a half on the certificate side. When we get into the second in a run it's January that's through January 31st so now we know about six months of vacancies that definitely lowers our estimated actuals what they'll be and really increases fund balance that we're intending to spend with all of these dollars. If we don't pivot mid-year to say well we have x in savings and vacancies let's now turn around and spend that because that's not what we budget the vacancies because we know that next year that vacancies are or it's going to be filled so we can't just take it out of the budget we need to keep budget in part. But as we go through the interim we see the savings as well as the positions. Then at June 4th the case money is as rate actuals you see that jump again up to 46 from 38. That again may seem that's a big jump. Where did that come from? So a big chunk of it is from vacancies. We now see what did we not fill February, March, April, May and June. That's five months of salary so a lot of money that we can potentially save on a vacancy. It's not that much though. The big piece of that is the board committed that when we settled with BDFT we committed about six million dollars to extra days for BDFT. Those were as we talked with the board that was intended to be a one-time payment to BDFT. So we budgeted six million dollars in a one-time payment for BDFT back when we were at second year and so we thought we would pay out six million dollars. That would have put that 38 million if we don't spend that six million. That by the way puts it to about 45 million. That's the big chunk of it. That's six million dollars. They ended up wanting to make it credible. They wanted to get that and you could define that as a supplement. So what they did is they asked, do you remember, as you all may remember, to extend those to the next two years. So we committed those dollars. They were part of the ending fund balance. That made ending fund balance 38 million by spending it. We didn't spend it yet. We're going to spend it just coming up here 23.4 and 24.25. So again to look at the variance and say when we jumped up eight million, we just didn't know we were going to spend it. No, we really thought we were going to spend six million dollars in one-time money. They didn't even have a different thought of how to use those dollars. We actually love that idea that they came up with. So we ended up committing the dollars. But it is going to create that shift because now it's committed. It's in the fund balance even though it's actually going to extend next year. So I'm going to turn it back over to Jenny. She's going to talk a little bit about restricted. So just so you know, restricted is a little bit more volatile as Colleen noted for multiple real living. I'm sorry, it's Colleen speaking of restricted. We really want to see if Jenny would describe right there. Yeah, so Colleen will speak a little bit more about restricted. I will say she is definitely more of a green when it comes to restricted dollars and the variances that come through there. She probably doesn't like all the time vast questions like, Colleen, how does it shift this much? Click, rather than just one count, so it's kind of true that we're going to go down a little. Okay, so I'll let her take over and speak to us. Okay, so going into restricted, you can see that we had a $30 million shift between, and I'm just going to say ahead of time I really hate comparing proposed budget to estimated actuals. We can so much can happen, and so much does happen throughout the years throughout the interim. So I don't like comparing these two, but I do like this Westminster idea to go through each time that we brought in the differences, so I do like that part. But anyway, the difference between proposed budget and revenue, $30 million, certificated salaries, the differences that we're looking at, and I'm going to I'm not going to read the slide to you. We're going to go to the next one if that's okay with you, and we'll look at the difference and what that difference consisted of. So, tuning, we have the proposed budget, which is the $94 million, you can see that in the first cell there or the second cell there, $94 million. And that did not include carryovers. Like Clint said, we don't budget carryover at this time, we budget it later when we know once the books are closed and once we can we know what that carryover is for sure, that's when we budget, and that's usually between 1st and 2nd year. So then on August 10th, at our 45th day, we found out that $86.02 was going to get more money, and that is selfish. So guess what that does? If we get more money in SELPA, it's going to be unrestricted as well as restricted, right? Because of our but you're going to see it in a different place, where you'll see the revenue, and unrestricted, you're going to see it in a contribution or decrease. Then on December, December 7th, we put in the carryover and it increased quite a bit, and that is that dollar amount that you really see is that contribution is in the carryover that we had. And remember that slide I showed you with Title I, that $2 million carryover did? This is a place you're going to see all those carryovers with all those hundreds of programs that we have. And my favorite saying to Clint is, death by take paper, that we can't just say this particular program has all the carryover because when you're looking at hundreds of programs and you're talking about the carryover maybe being a hundred thousand and a hundred programs you're going to get a huge carryover. Then on March 8th, the Starlight Kitchen we got the money for the Starlight Kitchen, and that's that little variance that we got carryover and the funding. And then on June 14th, you can see that there is just a very small variance there, and that can be donations that can, you know, a number of things, small little things that we get the money. Again, most of the variances that you're going to see, the four thousands are supplies, and most of those variances we kind of already touched on what they, you know, what these variances and fluctuations can be. So after post budget, we budget in 9.7 in the four thousands, and we're talking about 9.7 million dollars over multiple programs, all the school sites, you know, it is not just one program or one school site, we're talking a lot of different programs. 9.7 million then at 45 days we added the ELOP supply budget. So ELOP is different than ELOP. So we added both actually, which is the ELOG money as pipe and puG. Those came over and ELOP funding. And then the next day that we brought at first interim, now we have our ESSER budgets and the carryover for our ESSER budgets came into play. And then at second interim, we decreased the budget with the update, not much, but by 500,000 does that shift it over to our synthesis, right? We knew especially with ESSERS, we have programs. And with those programs, I'm sorry, the fives, with those programs we have contracts, let's talk about ELOP when Jen Wilson Bruno comes up and she presents for those contracts. It's not at the beginning of the year always, right? When we were doing the ELOP budget, she was bringing those mid-year. Now we're a little bit better off because we know we've got an ELOP program that is year to year. Well this past year, it was she was out counting the pavement getting contracts and those contracts are in a five. So you're going to see you shift a big, a large shift, like I've only dollars between the fours and fives, and restricted. And then at estimated actuals, we're trowing up what we actually spent. So part of this too is remember how we gave all the teachers the 125, right? We had to budget that. We budgeted and we put it in a purchase order so it looks like it's going to be spent and we're hoping that every teacher spends it. But that's not always the case. So now we're going through and closing the PO's that weren't getting spent and now we come up with our estimated actuals. So the difference between budget, which was that second interim, that's all the money that we had budgeted, and then at estimated actuals you're going to go see a shift because we have to close all those PO's that's stated before. And it's basically a broken record for your buy thousands of services as well. You'll see the increase for contracts that we're entering into the contracts. We're also entering, we're doing restricted routine maintenance that we don't always know ahead of time the maintenance crew is out there. They find a leak. They find something. Oh, there's a carpet that needs to be replaced because someone might trip over and they have a workers column. So they're trying to get on it and so then we increase the budget and they're spending those funds and then when we get down to estimated actuals we look at closing PO's or anything that hasn't been used. So that's why you're going to see a decrease between second interim and estimated actuals you should most likely you're going to always see that decrease because it's budget at second interim and then it's actuals at estimated actuals. Okay, we're almost there. There's 12 more slides I think if I count correctly right now. Important slides. So hopefully everyone's following along still and still with me. I actually find it very fascinating. So it's a little easier for me as I forget I took one month budget and numbers like I did. So let's look at 23-24 proposed budget just to kind of meet that I can a little bit deeper. I did during my presentation talk a little bit about some of the major factors that contributed. I want to dive a little bit more into the possibilities of the paid salaries. We're going to look at the fours and fives again. Colleen and I talked a bit about this. I know we talked about we want to see the fours and fives. I think when we tried to pull all the four thousands there was about 4,800 lines of data. For 5,000 it's about 5,000 lines. So what we did is we took the really ones to kind of show where to the major dollars go because those are oh yeah. So I just wanted to preface that as we get there. So when we start off with our budget as I mentioned what is our biggest problem in budget? And that's ADA which is enacted by enrollment. I know Trustee Dodger asked about I'm going to see school sites which absolutely one thing I want to know this is estimated in moments from what's in synergy. So the students that we assume if you're a second grader at an S.D. you'll be a third grader at an S.D. Sometimes we do have students who leave or exit so that's something we don't care about until maybe July or August. So these numbers will fluctuate. You will see changes once we actually do warm body counts of how many students actually come in this school. So I'm not going to go into this in much detail. It is shared if there's questions after we go into the site but just broken down by elementary and middle school. One piece I will note just to clarify. Aharo Middle, Ohlone and Hall did not change that precedent. So Aharo as you may remember we decided that Aharo Middle students, the sixth and seventh graders would continue at Lakeview. But any new sixth graders would actually stay at their home school. So Paul and Ohlone will see an increase in the moment. They're not really increasing. It's because of the decrease of part. They're just shifting. So again now they're broken by high school and then also broken out from our truck. They're just kidneys are already broken out. So when we built the budget and how it's going to speak to this piece is this is for the HR world. As I know that when we built the budget we don't give it an aside though. It's not done in the vacuum. When we look at staffing we actually spend a lot of time working with our department for looking at what moment in terms we're going to see where we see decreases. And then we look at our contract which determines how much we have to staff and then we end up staffing accordingly based on enrollment. So I was going to kind of speak to that and talk about how we go through that process and what we're going to say. Yeah, so thanks Clint. So as Clint just said we look at our with the HR department for information which we get in December. And Clint and I go through which usually leads up and we kind of start bringing it down and seeing how many students are going to be attending each school. We then take that and break it down even further into the grade level. So as Clint mentioned we then also have to compare to our contracts. So TK is a 20 to 1. K through 3 is 24 to 1. 4 through 5, 6 depending on elementary is 34 to 1. And then our high schools or our 6 through 12 or 35. So I put a slide together to kind of see what that breaks it down into if you were to take the raw numbers. So like a messy, a messy and I can't get out. I know that's still inside now. So that's what it breaks down to. So if you took 414 students on average they need 15.8 years. Kids don't come in perfect packages of 20, 24 and 34 or 35 for that matter. So we have to kind of adjust the staffing accordingly. We look at it by classes. So whether they're needing to have a combo class, is it the numbers don't work out at all and so we have to give another teacher. So we look at it at that micro level as well as what other programs they're offering. We look at their special ed programs. You have to provide, release and other staffing needs for those. But that's then what it breaks down to be. And I know we're not overly affectionate on high school but you'll see that that's including their CTE programs. They're bad by what not. Again, because you have PE classes that are at 50. So it all kind of shakes up. You have to kind of give a little extra head in order to to be our contractual obligation is really what the backbone of that is. So this is just kind of a visual for you to see how we staff and adjust based on the way the students are coming at the grade level so that we can. So once we take that, we then break it down further because there are other pieces that we contractually have to develop which is our release time. At the elementary prep time for our secondary schools is kind of already built into their training because it looks a little bit different because they actually have a prep time with kids and not with them. But at the elementary level, this is how it's broken down. So our kids don't have release in their days. It's shorter except for our full day on kids that and secondary schools have full day in this example. So we look at our first, third, and they did 120 minutes a week. And release time again, just in case you haven't noticed, release time while students are present. These teachers at the elementary level also have other prep time but it's happening outside of the student day. But it's still within their work day. So when we're talking about release in prep time, we're only talking about time while students are present. And that's what the release numbers are there for. So first through third is 120 minutes and then four through six is 150. And then we take those two numbers again if you look at programs and other programs that have on campus again, especially the big ones we have to primarily release as well. And then they get their total numbers to run their program. So what we do then is in usually like February or so, we tell the sites and we give them their FTE allocation including their release time so that they can start building their instructional program. And the same with secondary, we do the same thing. They get their total a lot and then they start building their master schedules looking at course requests. And then once they kind of do that, then they, that's, the fact that our department comes in and they're letting us know who they need to hire. I need this many, whatever, first grade teachers. I need science teachers at the secondary kind of and whatnot. And we've stuck up one second a lot. And so for that part. And we've heard right this week too at the master board meeting. When we have climbing enrollment, back to the other couple slides, we also have to look at what the staff is at the current schools. So maybe Amesti has 22 teachers currently and they're now FTE shows they have 18. But Rio actually has an increase in, which we don't much, but let's just pretend. Then we, that we need to fulfill. So before we go out and hire more teachers, we'll take staffing from another site and transition it to the site that's short. Or if there's a vacancy. So maybe we'll use McQuitty. Maybe McQuitty had three resignations. And so we need to fill them in. So we would take those staff from Amesti and transfer them there. It's called the displacement process. So there's a whole process outlined in the contract that goes by seniority. We look at programming and all of that. So we actually reassigned our staff based on our program before we go outside and fill vacancies. And that includes top to bottom classroom teachers, VAPA, CTE, Special Ed, like we assign our FTE and our staff according to the needs of the program in the district. So we make sure that we're, my goal always is not to have any vacancies. So we can use our own staff that's great because that means we're not doing layouts. But that's what we start for the first before we then go back to the sites and hire everybody out. So I got a little micro for you. So I just want to take this then all the way out to kind of what it looks like. I know we've been talking a lot about release at the elementary level. And so there's the instructional day of the students and then there's obviously the work day of our staff. I looked at Rio de Mar, because they currently have three full-time release teachers when they're actual staffing only calls for 1.5. And so if you take I kind of broke this all down so you can kind of visually see what a work day would look like. So students are at school for 1,580 minutes a week. That's inclusive of a 30 minute lunch and 15 minute break is the assumption that I made. When you take those two things out, that's not actually for the instructional time. For a first or third grader it breaks down to 1,460 minutes. And then kinder, I guess because again Rio has full day kinder. I'm going to negotiate with PBFT that full day kinders would receive 150 minutes. Teacher, not the teaching partners. But the teachers that teach it would receive 150 minutes in alignment with the 4 through 6. So that's why that's there. So that's about 1,430 minutes. So if we were to meet our contractual obligation of the 120 and 150 for 14 teachers, our release teachers that we have there, RP and music would be teaching only 640 minutes. So I kind of want to just point that out of I know we're having this conversation around having full time teachers for these programs at the school sites. The need that we have in order to fill our contractual obligation is much less than that of like where other teachers are teaching. So that is why we have this conversation of shifting or sharing because we definitely do want to provide art music and peace close to my heart. Because I was being a teacher by another science so I won't yield to the floor content I guess. This is why we've had to make some shifts and why we're sharing staff across sites. We've shared CTE teachers. We've had CTE teachers share between Cesar Chavez and Pb for a really long time. We've had other music teachers shared between Atlas Junior and Atlas High. And so this is kind of why it was then we're trying to keep an eye on our staff. I mean we don't have unnecessary vacancies. That's a question I don't want unnecessary vacancies. But we're also trying to make sure that our staff and the U.S. are voiced. So that's kind of how that then breaks down all the way from taking our enrollment and taking our back all the way down to how the staff and then how we put our sites to fill our needs. Thank you. Okay. So we talked a bit about on Monday about Prop 28. Dr. Rodriguez spoke to that. We're still waiting for CTE. We're still kind of waiting to see what they're going to place. Colleen and I actually reached out to a our auditor to kind of get some clarification. Can you give us any help? We just want some help. How can we send these dollars? What will sub-planting look like versus supplement? For those of you who don't know sub-planting is typically used. We heard a lot in Title 1. I don't know if we're going to hear from those. What the state and what the federal government are trying to say is if you can get these dollars, you don't get to take these dollars to now pay for your core programs. So if I say we want to give you Title 1 dollars to these schools, you're not going to turn around and say, well, yes, pay for all their teachers now. But the school over here who doesn't receive Title 1 dollars do pay for all the membership general. Right, well, we're using Title 1 to pay to these other schools. No, because the intent is to give up on them beyond the floor of instruction. For Prop 28, the idea is it'll be arts, music, a lot of different actual performing arts, extra access to students to those programs. In reach out to our auditor, he did say, if you can show that you are going to reduce and without Prop 28 you would have reduced, you may have an argument. Very ominous. So again, what they ended up saying is if you can show that you were going to reduce, you may have an argument for why you're using Prop 28. Now, I never like it when an auditor tells us you may and if you can show like you problem, it's never something. The problem is they're still waiting for their audit guys to know how do we audit this. So our auditor may say that. They may say, yeah, if you do that you'll be fine. The state may come back and say, show us dollar for dollar what you spent last year versus this year. And we'll say, well, again, that's not very fair. We have to find what we do need to reduce. They'll say, yeah, but we want the auditor audit dollar now. That's how we want them to audit. So we're hoping that we have a lot of advocates at the state level, in Caslow, the school services, actually going to the state and saying you guys got to be, you have to think of this in a different way. One of the other comments we might have to do and Allison mentioned it is if we provide additional release there's not enough time in the day to release the students more they'll provide them all their core curriculum they need. They need math. They need English. They need the sys. They need to work with them. They're sold in the other programs that require minutes throughout the day. So to say we give this up by more release time, as Allison showed with the release time we're giving, those teachers are only working 640 minutes out of a 21 hundred minute week. So that ends up worrying me because what ends up happening is if we're not looking at their job description, we're not looking at what the duties they have, what we hire them for, and they're not doing those duties. We get into a very scary situation with SIRS where SIRS says that those aren't really credited with jobs. They're not teaching. They're only teaching for a 0.5 so if you want to say pay them a 1.0 we're not sure that what they're doing fits their job description. So we do have to be very careful in that sense because we get into this of your job says that you're teaching a student's part. If I can only provide 45 minutes a week of art and you're only working 640 minutes, what do I have you doing for the other 15 minutes? Some of that, as Allison noted with elementary, will be prep. But even if you look at a standard, our general teachers in elementary, they're working about 14, they're in front of students about 1400 months. So again, 600 is still quite a bit less to say that they're providing additional release. One of the other pieces in talking to the law that he wanted to make very clear was it's also developed at the school level. So one thing Prop 28 did is they wanted to say we want school administration, site administration in conjunction with teachers and community to really talk about what program do they want to offer at their school. So they really as they do with the LCAP, but even more granularly with Prop 28, they want to say we really want the schools to tell us what program they want to offer. So I would caution the board to say we want to have art using Prop 28 and we just want to have all the sites at art because you may have a site that says well we'd love to do dance, we'd love to do costume design, we'd love to do graphic art, coding. There's a lot of that and this is saying that all of the examples they use, but this was just some examples of I think Trustee Derserpa mentioned that when she was talking about release on Wednesday, what do you do if they want coding and what do you do if they want and I think there's other options that Prop 28 is used for and sites can determine that's actually where we want to stand our dollars is on that in those areas. So sites will be able to have input that doesn't mean that we can't talk to the site and say this is what we'd love to see, but ultimately they should have a good discussion with their teachers, with their parents, and the community in that area and say here's where we can use the dollars, what would we like to see our kids doing with these Prop 28 dollars. One of the other pieces just to point out, we hear a lot that it's $2.7 million in Prop 28 that is split by school. As you can see through our five, it's those in technically five new schools and renaissance are included, but our three high schools get about $990,000 out of those dollars. So our high schools are getting a big chunk, so now if high schools want to have marching down, which I know we've talked about to bring use of Prop 28 dollars if they're willing to have that, but they are getting a lion's share of the dollars. Middle schools will see about $576,000 and then elementary schools only see about $1.26. Every elementary school, I'm trying to think if I look back, every elementary school is under $100,000. As I mentioned before, a teacher is anywhere from 125 to 140. I think I mentioned on Wednesday in reviewing their FAQ for Prop 28 actually specifically called out, yes, you can share with sites because that's kind of our intent if the dollars you get. You don't need to have to hire a full-time teacher. The reason we end up sharing the sites is while sharing the sites is that it can be difficult on the teacher, it's even more difficult to hire a point for a teacher. To say, well, this site can only afford 40% of the position. That's even more of a difficult at that time. Just wanted to get some information as we get a little bit more information on Prop 28. As I mentioned before, it's not actually in the proposed budget because we didn't know where the dollars would be spent. We don't know what sites we want to spend them on, so it's a little difficult to budget those out. Moving on to our salary. As Allison mentioned, we have a process for how we staff certificate salaries in our general fund and account for $117.1 billion of our total budget. In that is 1,091 FTE total. And so FTE for those of you who are up to their full-time equipment. So when we do staffing and when we do positions, we look at FTE, which is full-time teachers at 1.0. If you work four days a week, that's an 80%. FTE is what we use because we do have teachers who want to go on leave, so we have teachers who only want to work part-time and sometimes we only have part-time available based on how much FTE we need to run a part-time. I'm not going to go through each and every one of these, but just to kind of show you that's the breakdown of where we spend those, or where those FTEs are allocated throughout all of the, throughout both certificate management. For the 2,000, similarly, we have 890.5 total, 825 to be in classified FTE, and then 64.9 in classified FTE confidential. All those broken down again based on department. This is the job class that we actually use, so if there's any questions on what those ones mean, I'm happy to answer them if not then. They are the categories that our personnel commission uses when we're determining the position. So then employee benefits, you can see employee benefits alone is about 119.7, a lot of them only on employee benefits. I'm not going to go through everyone, but it's just good to see where those breakdowns come in terms of what we're spending. The biggest, of course, being first serves and a health and welfare. First serves, health and welfare accounts for just around 100 million of that, so looking at puts and spines that I mentioned at the start, I'm trying to pull out every single one, and I gave it a massive undertaking, it's a lot of, in 5,000 lines, 5,000 lines to look at all the members who spend dollars on all the PO's that we spend dollars on. So trying to look at the big ones, the ones where we look at and say if we wanted to make shifts, what could we reduce in this area to add to another area? This is both in supplies and I won't go into a lot of detail, I'm happy to answer questions, Colleen and Jenny here both can look them up and kind of give you more detail if Jordan has questions. Also, I think as Dr. Rodriguez has mentioned in the past, and I'm sure any upcoming superintendent we would have would agree to, I am more than happy to always meet the floor with the superintendent to go through in detail with more than 5,000 lines. Because I do, I mean, it can be hours, so that kind of being able to provide or work with the board to be able to look at and then kind of ask questions, again, I'm more than happy to do that. I know it's a lot of information when Colleen and I look at our head spin, so I imagine for the individuals who don't live in escape like we do every single day, it can see them more. And then our 5's I don't want to make that too strong for you anymore, obviously. So our 5's, again, it's the breakdown. I think as I mentioned the board being up with it, some of those big ones that we see are completely unpredictable. We have no way of you know, we can't not pay a specific gas little electric. Bay School, which is one of our special ed on public schools that we have to pay. To Spur, which is our gas, those are some of those big ones. Keenan Associates and Insurance. There's some really big dollar amounts of work just unable to avoid. The other ones, as you can see as I mentioned before you have things like Life Lab, Friends of Jack which kind of parks, you have HealthSystemma. These are all programs directing for students. That's typically where we try to spend our dollars. And I believe that when I was at the COE, my director once told me she was, spend today's dollars on today's students. And that's something we try to do. We spend whatever we get from a year on our students. That's why we're here. I think I don't think any of us including the school board would be here if it wasn't for students. So with that we're going to finish up and now we'll take a good question. Thank you, Clinton. I'm going to get an analysis. I very much appreciate your diligence on this presentation. I'll agree with Clinton that anyone who could pull on a Schoolhouse Rockbook presentation is going to be this time. I would like to propose that we just take a 10 minute recess. We have some people, because it is almost 12 o'clock, but are people okay to continue on as they fill up the plate? I would like to invite our presenters to fill up the plates first just because they don't think these are going to have your group. So please go ahead. We'll take a 10 minute recess and then come back for the discussion. We want to reiterate my appreciation and to prepare this report and also my appreciation for everybody who is here making this special board meeting. So one thing that's really interesting about the budget process is that we often hear demands for a great straight experience. I want to say that I feel that you and your team have been very transparent regarding the budget. That doesn't reduce the complexity of the budget and how schools are funded and sometimes that complexity can create an asset. But I appreciate the work that you have done to make the information as accessible as possible. I know that when I was running to become a school board trustee I had three people who had served me on other boards but kind of talked to me. One was a lawyer. One was somebody who was responsible for presenting budgets for an organization that has hundreds of thousands of dollars in their budget. And another person was the person who held my role in the banking industry. All the way to them said that school funding and budgets were one of the most complex assets of the job. And they said it gave yourself two years to observing in the board, seeing these budgets, seeing the processes, two years before you really start to un-machine. I have found that to be I am a reasonably intelligent person. I have been part of dealing with budgets in other organizations so looking at budgets is not even so. It was at about the two-year mark only. And they're still working. And Colleen, I'd love to hear your explanation of how things move from the 4,000 to the 5,000. I hope we can get a little bit of explanation about maybe it would be a bit of a question that I know. I understand it right now. And then in a month, Colleen said that thing. What was that thing she said? But thank you for doing what you can to reduce that capacity that is brought about by the complexity of the situation. And I also just wanted to mention in previous board meetings people have said, well, when I went to the school, you know, we had all this funding for various programs that we enjoyed. Yes. And in the 70s and 80s, we weren't seeing the Prop 13 when we drove back to 1970. We weren't seeing the full effects of that attrition of funding to schools until the 80s. So, yeah, if you were a good life being who went to school in the 70s and 80s, you had access to all these programs because you had more funding. And just what the songs and dances that we've had to do to try and get these programs, I just wanted to acknowledge our team in our entire district for what we've done to make sure that we use the very dollar that we can to support these types of programs. I also wanted to, you know, for audit findings, you know, we've done so well with our audits in the past few years. And it's like, I know in the last board meeting, you know, there was a discussion about, well, it can be fairly common, you know, some districts do, some districts don't. But I just wanted to, you know, again, comment on how pleased I am that our audits have been so favorable to start accuracy in our information. And again, I want to acknowledge this is the team. You know, I know for me, one of the things that I really had to wrap my head around was, you know, what does it mean when we approve a budget? What does it mean if we don't? What does it mean if we approve or don't approve the budget reports? And I was wondering if you could just take a moment and just give us an example on the 28th. So if we use the budget for your consideration what would happen if we said no? So, not very common. It's not very common. So it's something I actually talked to the COE about and Leigh-Anne Reynolds who's effectively their CEO for the entire county and asked what happens when a budget is not approved. And what she said is the school board has a duty to approve the budget. The school board has a duty to ask questions and look at the budget up until the time it's approved. But it is their duty to approve a budget. If the school board decides not to approve a budget then it's the COE's job to implement the budget. So the COE actually would step in, Leigh-Anne would step in and say, you guys need a budget so we have to give you a budget. So we're effectively now going to come in and we're going to look at your budget. We're going to make that the nation. Then ultimately Dr. Ferris-Savad who's the superintendent of schools as Jenny had mentioned who ultimately approves a budget for the scholarship that we're using said yes, we agree with their they're the ones who ultimately provide us with our positive certification of a budget like during our interims. They're the ones who ultimately approve the final budget so yes, this is accurate and available. So from talking with Leigh-Anne, she was going to look more into it because it's in something that's uncommon for her as well. But her understanding is then the COE will come in and they will apply a budget to be able to ensure that we can still base that. What are the budget reports? For interims, again, she had mentioned similarly it would be that the COE would be to step in because we are required by bank code to present a first interim having approved by board and sent to the state. So if we do not do it, then the COE would have the obligation as our direct fiscal oversight to step in. Jenny, I don't know if you know of any more pieces they have to do. So then in interim periods, there are three qualifications or certifications that the school district can receive. There's positive, which means that the school district is able to meet all financial obligations through the coroner and the two following-ups entrepreneurs. Qualifying means that the school district may not meet their financial obligations. Either occurring there or one of the two separate menus. Negative means that the school district will not meet their financial obligations. Part of this is also looking at that required minimum reserve that both Claire and Colleen talked about. If a school district cannot meet their minimum reserve, that is an automatic either polite or negative certification. What the polite certification will have is it gets sent out to the state. The state will then maybe engage fiscal crisis management assistance teams, but generally the COE will kind of step in and they will give direction to the board and to the administration to implement a fiscal recovery plan. Basically the fiscal recovery plan is to weight size the budget. They're saying that we're getting to the point where our school district is getting to the point where they won't be able to make a payroll. They won't be able to pay their bills. You need to start making cuts now. It's not a pretty picture. And we've had all my years at the COE level. I've seen at once when I was at some of the office of education but it's not something that we want to get to. It's a course in the newspapers. It really breaks trust with the community and the district and the group. If there's a negative qualification it's a little bit more dire. At that point it is determined that the district needs an emergency apportionment, meaning the district needs help from the state. The state has to come in and get an emergency library for students to operate. At that point it's pretty serious. The county office will be 27 and they will assume all of the degrees and the legal rates and the responsibilities of the board. So the county office comes in, they will take a really long time for the district to recover. So when you talk about what the role of the board is, from my experience at the county office level, the role of the board is to really guide the ship, right? It's not to kind of get into the leads of what are you doing with this appeal, what are you doing with that appeal. It's to set the framework through the LCAP process, through improving contracts, through improving initiatives, working on these aids, giving community input, and kind of guiding the administration on what are the top goals and initiatives of the district. And then relying on that to say you have a new house and then also from the county office level to make sure that those goals are being met. So I hope that kind of answers the question but it doesn't. So the challenge comes in between the time in which the board doesn't approve and the county can basically either concur with our members or not. So that's the time period that is really dangerous and risky for staff because then we cannot pay. So as you know we have to have it done by June 30th. Our board meeting is very close to that date. And as most of us here, including myself, we depend on our paycheck the day that we're planning on receiving it. So the big question is within those two days are we able to continue to pay staff? And if we have a week delay that can cause significant impact? I also want to say that people what we went over with all of the audits has happened and it does happen. We are a big FPM location so not only did it mention FPM but because of our size and because of the students we serve we also have significant FPM which is a federal program monitoring that happens. For us we even have more oversight than most school districts because of that process, that federal process. And so for me what I would say if the board is concerned with something then during, well now would be fine as well, but also that's when you get it expressed during the public hearing so that you know specifically what is concerned. And I'm just going to address it on the head right now. The reason why this meeting was said to be done was because there was conversations about the union saying why is the variance is. Which is why we drilled down into this years. So you could actually see the change over time. So when people are, and I do have enough for the public, that we have two members of the public right now. So when people are hopefully watching this video then they will be able to educate themselves on why those shifts happen. Because what they do is they say to you we'll look at between what they said and what they ended with see they don't know what they're doing. And we in this case showed, and back to the complexity, we actually showed if you track it over time for the most part between March and now there was very very little change. And there's a lot of change because of the 45 day revise right. And so the 45 day revise was something that isn't always happening. It happened this past year, it likely will happen upcoming maybe. And so you know I think when you are going to make a statement that you don't believe in the budget in which was developed then I think it's only appropriate to say what exactly it is that you are concerned with within the budget. Because otherwise because what you're saying to the budget people is they have not done legal practices and ethical practices in implementing the numbers in which was within the LCAP. Questions or comments? Just want to start, thank you Clayton. Great presentation. I know budgets are complex but you know that helped out a lot. And I just want to say thank you Colleen for all the years you've been in our district and to our community. I know you care about what you do and I just want to say thank you. Just a couple quick questions. One of them was obviously this budget includes the independent charter schools. So depending on the numbers we showed we did not include charter schools. We were talking about specifically general funds. So just R30, R side not including WCSA, UTCS and public education. And I know we talked a little bit about how schools are allotted money. How do we know if they're spending the money and also if they're spending the money correctly? Yeah, absolutely. So there's a couple pieces and I'll let Colleen dive into it. This is something she's lived for a long time about being an accounting man in finance. So as Colleen mentioned, sites are supposed to create a school site plan. So they create that plan. They actually submit it to finance as well to show here is what we are going to spend our dollars on. That plan is worked on at the site level with teachers with staff to develop where do we want to spend our money where allocated. Each site's allocated their own funding for their purposes based on their enrollment. So we do it to be fair that sites receive based on their membership. They also receive Title I funding directly as well as supplemental and concentration funding. So they have multiple pots of funding to use. In terms of are they using it correctly? Are they using it in the way that's best for students? There's two pieces to that. One is as finance, as our role, we don't determine is that what's best for your school site because that's determined at the site level in their school plan. What we determine is are you buying something that's legal to buy under that code? Are you coding it correctly? Are you putting it in the right account? All of our POs, as Colleen mentioned, and just to get a little bit more in the weeds go through multiple individuals. So when you submit a PO, so if you at a school site want to buy something, you'll create the reposition. The first step is it goes to the principal to review. The principal approves that it goes to purchasing. So our purchasing department, which has Kerry is one of our individuals there as well as Grace, they review the PO to see are you buying it from a vendor we use? Are you paying way too much for something that we can get a lot cheaper from another vendor? Is that actually our first level of determining are you using your funds in a way that makes sense? You're not saying I'm ordering a pack of pencils for $400. That's not going to give you some money. So they make that first determination. After that it actually goes to finance where finance looks at it and says can you use those dollars or as I mentioned before they look at it and say spend your restricted dollars first. So when you're buying actually fits into Title I, let's use those dollars for this first. It actually goes to that. The thing goes to Rich though for approval in terms of creating a... Yeah, it goes to a cabinet member as well, whoever oversees that site to make sure it's the right person. Then it goes to Rich for final approval and signing of the PO to say yes everything's been done. So it's actually a pretty long process. Sometimes you may hear sites say we can't just go and buy pencils, it takes so long. It's like we'll get it, it takes a long time because we are. We're doing that due diligence. We want to make sure the dollars are spent correctly. So I don't have a point or anything to add but I think that's from our view. The site side, again it's that school site plan. It's doing their school site council working with them to develop a budget. Can you hear me today? We look at government code, penal code. We look at California Constitution and code. All of that is vetted through all the approval paths and the processes. Then that's just on a particular expenditure. We also meet with twice a year. We meet with principals, program managers, anybody who has a budget. And in the fall we meet with them and tell them you need to get in all your purchase. All your encumbrances, make everything that you are planning for that school site. We want to see it in the system now so we know where you're at. Then in the spring meeting we're like, well you haven't spent this PO. What's going on? Why haven't you spent this? We reach out to them on their 125 PO's and we say, well these teachers haven't spent theirs yet. So we're constantly monitoring them. And then all throughout the year each site, each program, each department is assigned a staff account. And that staff account is constantly calling them, well this looks like this isn't a compliance and what are you doing about this or we need to do this or... So it is on a constant review. Thank you guys so much for this presentation and everyone who made the page today possible. This has been great. This information and even what we've received at our last board meeting. Coming in as a new trustee and that's the work I had mentioned before. I'm like, I don't want to wait too long. I want to be able to answer questions. Because the second I was elected, I had people approach me with questions and so I want to be able to answer. And coming in and looking at the budget if I ever made it seem like I was questioning anyone's topics or not getting their job right, that's not what I was considering. I was just wanting to know where our money's going, how it's going to spend. I was given very great budget. This is amazing. I love this and this is exactly what I wanted to see. I do have more questions that I can dive more into some of these. For example, when we're giving this is how much it's going into certificate payroll. It would be nice to see that broken down into teachers. At all the different positions that our institution made. It would be nice to break that down into transportation, maintenance. I'm not saying I have to do this for everyone but as a trustee, I'd like to know that type of information. With funding, I see a lot of these amounts and I get tons of gas and electricity. I'm not getting away with that. But there's other ones coming in brand new. I don't know where these are, these contracts, are these like every year no matter what or is there a time when these contracts are up. What you say they're restricted but there's several different types of restricted funding. Are they for these grants or for their grants? I'm giving this money to spend on garbage. In this specific, I'm talking about slide 47, it has a dollar amount and the item maybe one that specific expense came into play if it has an expiration date on it. What funding is paying for this or whether it be a grant or something. Do you have any questions I would have? Then I would be able to answer questions I'm receiving from the public a lot clearer. But yeah, I'm sure I'm going to have more questions later on. This has been really great. Thank you. I just wanted to mention that a lot of these contracts are in or if you have a specific a lot of them are available in board stocks and have to do a certain function. This is where I'm talking about the complexity. Yes. Yeah, I mean to that point a lot since Dr. Rodriguez has been here I know our large contracts we bring to board. So board policy actually gives superintendent for the discretion to enter into contract. What we have since Dr. Rodriguez is joining us always take in large contracts for the board so that the board has an opportunity to see them, hear about what we're doing with them, and actually see where the funding is coming from. So if you look in board stocks there will be a budget source where they start to spell out where it's coming from in that item so that you're able to see this is a general fund. So if I'm approving this, this is and if it's unrestricted these are dollars that could go anywhere. So the board is making a decision to put it specifically to this item you don't need to go anywhere and then we will call out if it's restricted funding like this is I don't want any more. This is ELOP. We do that. I do understand as a new board member you didn't see hundreds of contracts that came through so I'm trusting Holmes or President Holmes point searching board stocks adoption or as I mentioned I'm always happy with the superintendent and we go through questions especially if they're coming from public. I know Dr. Rodriguez often will ask me to answer questions for them in the B2Bs to try and clarify things we're doing a lot of questions about and I'm personally out of doing it because you give me a deep dive into the budget and I go look at contracts and see what they're coming from. And just so that you can answer those questions so what we'll do is for slide 47 we'll provide you if we have a little more information actually at the last board meeting. If you remember we did this slide on the last board meeting and there was a little bit more information but we'll tell you which ones of what funding source each one is doing and then we'll tell you contracts. So some of them are multi-year contracts like EOP which is our college and career center that's a multi-year contract LC Stama but a lot of these now are EOP so last time we wrote the words EOP on there so you kind of could see but we'll take this slide and then provide that chart just so that you have it at least for this because this is everything that's you know over a hundred thousand which really is when you're talking about anything that really is substantial it's going to be over a hundred thousand so we'll do that for you by just kind of writing. I just want to reach out to you part of the slide book if you want to make more of this interesting stuff. Okay. Thank you for the presentation. Thank you for all your years of service EOP which is very informative I know it's not a lot of people here but thank you to those who did come and we also got a lot done today as well. I know people will be watching this and the conversation will continue. I also appreciated you know the checks and balances within our districts and your jobs as budget and in charge of our budget and managing the budget and your job as board members is that policy is my opinion that we're the best educational opportunities we can while we're this way responsible and it's okay to have some back and forth and all seven of us agree about everything and that's okay. That's democracy. So I want to say that you guys have done a fantastic job and it seems to me that we're pretty good financial help overall. I do have some questions and I have a lot of answers to ask them all today. One of the questions I had was we're going to be doing classified negotiations. Right now we're looking at a budget and we have to have an educated estimate as to what and we don't know how the negotiations will go. So how do you do that and what number, how did you arrive at that number and what was your calculation there? Well, be a little careful to not have an unfair labor practice by talking too much about what we would offer or what we won't but I think I can still answer your question. I'm going to see if I can go compare right after this. You should have heard what you said. So what I will say is in my time being CBO, I have heard from the board about any additional money we get we want to go to sectors. So when we're looking at negotiating as you know we come to a closed session and let you know what we believe we can afford I think your question is, as building the budget, how do we determine what that is? What we do is we look at our COLA which again is one of the only ways we see ongoing money. Is that cost of living adjusting? Or if we see an increase in enrollment or an increase in ADA. So what we do is we take that dollar amount, we review it, we say okay we have we're going to do an extra million dollars and let's say we're going to make an extra two million dollars then we look at our bargaining units and we say PVFT roughly still is about a million dollars for a one percent raise CSEA is roughly about 450 to five, it's actually now about almost 550 with the recent raises it kind of spikes up so PVFT is probably closer to 1.1 now. So we look at that and say okay that's the dollar amount. So what we really do is we look at dollars not percentages. So a lot of times you'll hear you've got a five percent COLA that means five percent raise. But what we look at is when we got a five percent COLA which as I think I showed you if you remember in the slide on the board meeting, a five percent COLA to us might be might intend to be 12 million dollars. We may only see eight million because of declining enrollment. And so really we only sign a million dollar increase. On top of that we have increases to the step and column, increases to help the mother and first. So what we're looking at provides guidance to the board of here's what we feel we can afford is that of course the board provides guidance to us and what we can offer. We look at it and say here's our here's our new funding we got in. Here's how much we lost from planning enrollment. Here's how much we have to pay in curves. Here's how much we have to pay and help them out there. And here's how much we have to pay in step and column. And step and column for the movement on the scholarship that happens every year for those who aren't backed out. Once we've determined that, we get a dollar amount. That dollar amount we try to distribute equally to all of our units. So we look at it and say if PVFT got a five percent raise, we should be offering CSEA a five percent raise. It's unfair to say to the board we want you to value this unit at this percent and this unit at this percent. We understand the dollar amounts different because the salaries are different but we try to find so the short answer to the complex question is we take a percentage, we tear it down to an actual dollar figure, then we turn it back into a percentage to try and equally provide it with that. Okay, thank you for that. And I think we may be also looking at something else for administrations or it's just this important question we're looking forward ahead and some of us might have some ideas about how to why don't we make adjustments that are going forward. Not necessarily to your process but just what it really looks like in real life so people can afford to take it. I had a question about the reserves and I really looked at the reserves for the last couple of years and I noticed in the unrestricted reserves at the end of 2021 we were at 25 million and I'm not talking about the total, just the unrestricted 25 million but in the next year we went to 42 million which is the number we heard and then I noticed in your estimate it actually went to 46 million. That's a good sign. How do we pay for 25 to 42 million and I think that's a long answer but we can answer it all right now. So there's two big pieces that I think impact. One is you'll notice if you look at the fund balance there's a 6.8 million dollars on the sign. Now the sign budget is from when the state pretty much at the beginning of the year before we had time to hire, before we had time to plan said you're going to get an additional 15% of concentration dollars. Those dollars can only be used on sites with 55% and over DPP funds. We said, okay, how do we spend these dollars? So what the board did at the time said sorry, UPP again is undecided people percentage. So it takes our foster youth opportunity transition, English winners and low income we get more dollars for those students to provide them more services. So the intent again is not to supplant services to provide them above and beyond. When they gave us the 15% they said you have to use it at 55% and over a second only. Which was much different than what they've done in the past where they just said this kind of gives you more budget and you can now provide raises to everyone utilizing college. So Colleen and I worked with Dr. Rodriguez. She brought it to the board and decided that the IA's we had added with ESSER funds we would move into those concentration funds and we'd actually be able to use concentration funds by moving those IA's only to the 55% and over side. We also added some PLD teachers only for those 55% and some intervention for those 55% and over only. The problem was we didn't have the time to do it in that first year. So what we ended up with was $6 million dollars that can only be spent on these sites that we're now kind of catching up and trying to use. So we're using last year's $6 million for this year's salaries and then so we're kind of at the $6 million dollars that's almost in limbo of you can only use it on staffing at 55% and over sites. The problem is it's now become effectively 100 because once we spend that additional $6 million it's going to be gone. So it's because we have the expenditures every single year but we basically have one year where we're going to spend that. So that's the major reason why we saw a $6 million increase in the ending fund balance. The other piece then was as I know for like the 46 $6 million for PDFTs ongoing or sorry there are days which was really a one time. The other big piece was ESSER. So when we got ESSER we let the board know we were trying to move as much as we could into ESSER to have the fund balance to prepare for what we're now seeing in 25-26 you're going to be deficit spending $9 million or more and that's with ongoing costs. It's not one-on-one costs. So absolutely if we saw an increase but again I think the answer is each interim, each budget we do try to expand where that increase came from and we're always happy to dive into it. And I'm not upset that there's variance. I'm just noticing that the reserves are growing and in that year they grew a lot. On the restricted side, from $221 from $14.3 million the next year to $20.2 million we're talking about the unadded actuals. $16.9 million and now I think you're going to be estimated an actual year. We're going to get $30.1 million. Sorry were you talking about restricted? Yes. I'll let Colleen speak to it. That one's a little bit easier to explain to you. One hand front the other. Yeah we did ESSER funds. During the pandemic we got like $100 million in ESSER funds. We got it in IPI funds and all those funds have a specific time and a specific way to spend them. And so what we've been is we've brought it to board to the HVAC and all those projects and all those sites. So over multiple years we couldn't do it all in a year. So that restricted any fund balance was large because we couldn't do it in that first year. And then as we're doing these projects it's slowly going down. So if you look at our multi-year you'll see that our restricted any fund balance is constantly going down because our projects are getting done. And we're spending those one time dollars that expire in like September of 24. So I think to that point to elaborate it's what Colleen touched on before there's times if we get ending fund balance. So that's different than other revenues. So just as a quick recap. Ending fund balance means we're going to give you $5 million. You record it when we give it to you and it sits kind of in a safe position. Unearned revenue is going to give you $5 million if you spend 5 million. If you only spend 2, you only get 2. So you only record 2 because it doesn't actually carry over to the next year. You actually earn it in the next year. The problem with ending fund balance often is with like Essar is a perfect example. We're giving you a lot of money but we're telling you enough to spend it by 23-24 at the end of last year. Really September of 2024. So when we got that 3 years ago as Colleen noted we can't spend it all in the year but really we're being strategic and saying it's over 3 years so we're going to do some stuff each year to be able to utilize this funding. So it looks like a jump in fund balance of if you didn't spend money that you should have spent. You know we got a lot of money that's met for multiple years. You'll see that with learning loss mitigation funds. We're going to get about $20 million in learning loss. That means we spent like $27 million. So it doesn't make sense to say what can we do in one year to spend $20 million we're going to get a $20 million in revenue but we're only going to spend probably $4 million each year because that's the plan and we have that plan to spend those dollars over 5. On the prop 20 money I think you said you can't be not going to budget for it. So everybody's coming so how is that going to work? So right now it's not in the budget it will be in the budget at first. So that's why I just mentioned we didn't have any because we didn't know we kept getting estimates we didn't know the exact portion that we'll get. We'll have that by first and on we'll be able to put it in and then as we work with sites to build site plans we'll know where they want to spend it. We do know they have to spend 80% on staffing so we're able to kind of budget and say at first and on we can put it on the plans 80% on voting to salaries. The problem is it's probably going to be like 100% on salaries for some sites if they're trying to add some. I just want to add that instead of showing you some of the release time and then we were going to reduce them and so reducing them and then having to refund them with that prop 28 money or how we were going to do it, we didn't know and so we couldn't say oh now we have all this money well then we would have to show a reduction in like our release time and we unrestricted and we couldn't do it. And the base here for the prop 28 is this past year or is it supposed to be enhanced upon 22-23? 22-24. It's the first year we're going to so it's not going to be the first year. Aren't they asking us to calculate the enhancement off of this past year? Calculate the what we'll receive. Right so that's where we have an estimate of what we'll receive. By first and on we'll have a better idea of what we think that will actually be. But yes so it's prior here in terms of looking at our payment. Because the budget has to be approved. These are just like the preliminary budgets that the governor's putting out it still has to be approved through senate and everybody. We try not to put it in if it's just an estimate and we don't really know what it's going to be unless we know for sure yet this is what it's going to be and we're going to get our account now. We don't even have the resource and remember I showed that 26 digit account in order for us to account for it in our financials. We have to have a resource number which is that second set of digits. The state hasn't even given us and that comes from the state they haven't even given us a resource number so it's really hard to even put it in our budget without those numbers from the state. I'll save my questions later on for further discussions. Thank you everybody for putting this on. Thank you for your presentation. When Dr. Weber you first came to our district there was a process whereby you went line by line in the budget for the first time I think in my memory of being on the board and found areas that were cost savings to the district can you talk a little bit about that? Sure, so when you're looking at the budget often there are things that we are spending money on that in essence we can have the exact same service or product but save money so one that we did was a white fleet. So we used to for very high mean students we have we used to and we still utilize it for a very small amount of our students but we used to utilize a lot of the taxis for those students. That cost us back then it cost us $450 a day I don't know what it cost us now but it was a lot. So instead of that what we did is we implemented what I call an efficiency which is we added white fleet drivers instead and it's an efficiency because the children actually continued to get the exact same service and they actually got an improved service because they have the exact same person every day versus with the taxis they wound up getting different people every day but it in essence saved us money. So we hired on white fleet drivers to do that instead of doing the taxis. So that was an example of something that we were spending a lot of money on another was when I got here which is why there's not as much conversation but it used to be that this district brought in a lot of consultants to do work for us like administrative work for us and so we wound up saying we're not going to actually pay the administrator to do that but it's an outside person to do that but we're actually going to have our own administrators do that. So again that was an efficiency instead of spending all this money on consultants we had internal staff do it. So we basically we went through and a lot of it was found in the five thousands so we looked at the five thousands and what was it. It also back then because Colleen was not in her position obviously Clint was not in his position there was a lot of like position control that we didn't have under wraps as well as we should have and so back then we estimated the sky was falling and then it didn't and then we said the next year the sky was falling and it didn't but under well after my first year and then second year on it's been a little bit harder lately because of the one time money that we've been getting but we got down to where we were at a one percent variance which the county was like that is fantastic and that was because we knew our budget right we didn't have a lot of issues with our budget and this team I have the most confidence in that I've had of any team that we've had in the district and I'm sure Jimmy will do a wonderful job too with Clint and so but that's what we did we went through because we were finding that our numbers were vacillating and we weren't as accurate as we wanted to and so we had to really drill down into each one and say are we over estimating are we not and so that that's the process and that will be the process I'm going to do thank you my memory serves that you went through want the budget line by line by line and in some cases there were duplicate entries of positions that were taking up budget but we didn't want to ever actually kill those positions and so we deleted them because they're called active piece again so again I know you already said this but just to remind the viewers and everyone else our reserve is three percent and that's ten million dollars essentially and so what I heard you say is that what we have essentially right now in reserve what we have set aside from a board action in the past is about sixteen million dollars so it's not like six percent correct it's more like correct so we have about six point eight set aside so it's really about three point five percent because when the board committed it they committed a three percent at the time whenever the board commits dollars we don't get to ever remove them unless the board has to commit their dollars so that same dollar amount stays even if our three percent goes up and down that dollar amount was what it was at and just to remind everybody if we had a three percent reserve that gives us about two weeks of payable correct three weeks of payable okay in my tenure on the board the state you don't think of the state says here's what your allocations that you get you never I never presumed that they would ever take those back and yet they have when I've been sitting board member and in that year our budget did go negative which was but still super very very alarming no it was after 2010 so in that year our budget did go negative and I think heavens we had a reserve and so the board's action during that time was to put set aside enough money to at least cover payroll for a month or more because people are relying on that money so the other thing I heard you say is that the average that school districts have a reserve is about 22 percent and so maybe I didn't say that correct right is that right depending on what you want their entire reserve their entire reserve okay and it looks like we are running at about 12.4 percent can you talk a little bit about the deficit spending because we hear about it every year but what is it what are we actually spending on and how is that important if we wanted to correct that so there's two different types of deficit spending so again only what I tell you there's one type of deficit spending and expenditures are greater than revenue she's right that's the definition of deficit spending there is times that we plan to deficit spend so when for example Chloe made the show of the slide about negotiations if we're going to do a retro that should have been paid last year we know that we're spending probably three million four million more dollars than we're going to get this year but it's in our ending fund balance because we didn't spend it last year so that's going to be planned deficit spending we can say I know I'm spending five million dollars more than we have but it's coming out of ending fund balance it's not ongoing so once we spend it we don't have to do that again so then next year it'll actually kind of right sides itself go back up and you'll see that if you look at some of our prior budgets where you'll see like you're saying this year you're going to spend seven million dollars over for the next year you're fine where would you find the seven million dollars when was one time we were doing some big projects we were trying to use that money one time to get us to spend down that ending fund balance if you have deficit spending that you're not spending so because of the fact that declining women is out basing cost of living adjustments you have to start the right something like you have to look at when we get vacancies people can say is this something that we still need when you're declining in a moment it's a little easier because as Allison mentioned sometimes the need isn't there because we don't have the number of students so having that extra feature we don't have a class for that feature with classified it's much more difficult because with classified you know you have your one custodian during the day no matter how small the school gets we look at it in finance payroll HR and actually over the last couple years HR has reduced because as we reduce in other staff as we reduce in students we do have a little bit less we need to take on in our departments but it's difficult to manage because a lot of our positions are one of our positions so no matter how many students we have it's difficult to say we no longer need a director of purchasing or we no longer need a director of fiscal we need those even though we start to shrink so when we're looking at ongoing deficits pending we have to work with the board and start to see what do we reduce that are ongoing and help us recognize or we hope that we're not necessarily even hope but advocate at the state level to say we need more funding for education because I think the trustee people need a wage that allows them to unfortunately California does not fund us based on cost of living in your area so we get the same amount of money as Eureka gets for their side if they're the same size district we all know it's a lot cheaper to live in Eureka but they're going to get the same dollars per student so in a long way of saying we have to start looking out there we can make reductions if we continue to have to spend because the increased cost of health and welfare and as well as the low colors we're starting to see in the up years as well as defining the moment we're just not going to be able to keep that pace not by any fault of this board not by any fault of any staff in budgeting not by fault of the superintendent by fault of California as a state. I see partisan stirs were funded in a different way so the state made most of the contributions on behalf of districts so can you talk about stirs at first just so people can really understand for us what that means yeah so stirs is the state teacher retirement system purrs is the public employee retirement system so stirs in the name is for teachers purrs is for any of our classified employees but it's also actually for firefighters police county workers and again this is no slight on fire or police but they're actually a retirement rate of purrs is higher than school districts they actually end up with up to 3% per year of their ending salary based on their years of service so what we see in those sites is you have people making 120% of their salary when they retire and purrs is needing to fund that so as purrs keeps needing to fund all these retirees they're saying so to fund them we need to get more money from the employees who are currently purrs members they don't want to put that on the employee because that's the best money for the employee so they put it on to the district so we've seen purrs grow up in the last 10 years more than 10% as I showed on Wednesday stirs is leveling out right now 19% but that still means for every dollar we spend on salary for a certificate of 20 cents has to go to six for purrs it's at about 26% now so for every dollar it's over a quarter that goes so when we look at actually an employee for a certificate it's about $1.25 is what we spend for every dollar for a classified it's about $1.32 for every dollar $1.33 no $1.35 sorry I keep going back like 3 years when I was like hey this is lower but yeah $1.35 so to your question there is every time you spend to see a position and you see a salary when you look at it and say hey that's a $50,000 position when you take into account our statuaries and then our benefits those $50,000 positions are costing us $100,000 so these are huge expenses that the districts have heard and they've been going up just a small percentage every year but over my 13 years here it's a significant amount of money that before we potentially could have taken down a general fund and spent it on facilities, grounds, etc. etc. programming so in terms of health and welfare benefits and salaries can you tell us again remind us again how much of our budget is now out of our total budget so out of unrestricted so again those dollars where we have the most control it's 90% just over 90% and for schools in California in general is that a high end, a mid-range low end? So usually for districts from unrestricted it's anywhere from like 88 to 91% so it would be the high end for unrestricted. Overall we're at about 87% I believe for both unrestricted and unrestricted for that it's usually I think between about 85 to 87% so we're around to that. So what that means is essentially we have somewhere between 10 to 12% of other money that can be spent on everything else so one of the things I think as a board member that I long been a proponent for are helping to build and maintain our facilities because our facilities are older and in many years because our budgets were poor we could not invest in the continued maintenance of those facilities and this is really important to parents in particular who are on campuses every day right so they don't understand that we essentially don't have the funding to do proper maintenance of our facilities can you talk a little bit about that? Yeah so each year we do a contribution to our maintenance and what that is is it's about 3% it goes into an account specifically for maintenance of our sites a lot of those dollars go to staff so that's the pay for the maintenance specialist we have in-house it's the pay for our so our ground individuals who are keeping our schools maintained so that's one way we do it. The other way is having our deferred maintenance which this year we did in contribution to help us because we do know that our bond is in and that's where we use a lot of dollars for major improvements so Hermondo and his dean now are faced with a very small budget to maintain 32 sites so we do have some deferred maintenance but again it's one time money the state doesn't provide us with any funding for facilities or any additional funding for maintenance of our sites they do it through the school bond so you may have your constituents ask but I heard that they're funding a school bond like that means you guys don't get money the problem with the school bond is it's OTSC it's the office of public school construction and what they do is they say we'll help you improve your schools but only if you pay for 50% so we'll pay for half if you qualify and you do all the work to make sure that you end up qualifying we won't match but we won't pay for it and the problem is that process is a long and arduous process we have projects that are about 6-7 years old we're just now getting OTSC funding for we're now saying hey we got to your project from 6 years ago we'll give you back half of that money we're taking that money it goes into a facilities account so when we do that we do try to put it back into our schools that's actually some of the funding we were able to use for like our climate net project to improve our schools it's very limited we don't see a lot of it and again it's matched so unless we have the money to do big projects the state won't be able to give us any money for the big improvement so as you know measure out was a huge savings for us but again 150 million dollars for 300 million dollars so even that ran half of what we ended up needing to keep our schools going thank you so in your last budget presentation I don't know there was like a cautionary tip it felt to me a little on the dire side when I heard your presentation I had just been to the delegate assembly and was told that there is a reduction in state budget for education that for my district it's like a 23.5 million dollar reduction can you talk a little bit about what the state is telling us now because I thought there had been maybe a little bit better of an outlook but I really appreciate the forecasting that comes through some of your capital capital advisors etc. yeah capital advisor school services they all provide us with some insight into what's happening so as I mentioned before the budget process is a common table at the state level the governor gave us his main revise which I shared with the board which actually showed about nine million dollars for us nine million dollars in reduction to the learning loss one time money that we were being debt and then five million dollars reduction to our arts and music and block that so for us about 14 million dollars in those one time money that we were going to lose the legislature has recently released their budget those legislature they look at it and say we don't like that we don't want to do that we don't like these new programs you're looking at we want to change it they actually reduce those reductions they do not want to reduce arts and music for learning loss nearly as extreme as the governor I think the governor have for arts for example for learning loss I think it was like 1.2 billion they're saying like 200 billion about a 10th of what or sorry a 20th of what he was going with they're like no we don't want to we don't want to come anywhere near them so it's we don't know what that will look like it does look better in terms of one time unfortunately I think for me the cautionary tale is when we look at our third year we see our deficit spending as I mentioned to the board on Wednesday I truly believe the state has to do something we do not foresee the state saying this is just what you get you get 2% COLA's and we're just going to we don't know how you'll survive with the party in a moment one thing you'll hear often and I've John Gray from school services said this to me one time and he said you'll hear that the state has record highs in records and record highs in funding for education and he said they should always have record highs for education we have this everything is going up because so the fact that we have record highs that's not that doesn't mean anything he said yeah we got more money but everything costs more so when we look at it that's kind of the same way I viewed it now is we may get a 2% color so it's like look you're getting more money from the state and more money than they've ever had before right but we've given raises we've seen season help them out there so the dollars that we got don't match the expenditures that we have that are rising so yes we're education is higher funded than ever before but I don't understand that there's just a few dollars so yes it's higher it's more funded everything costs okay thank you again are there any further questions or comments from the board I realized that there was one acknowledgement that I didn't state in my comments and that's someone acknowledged by fellow trustees for all of this meeting I think it takes a lot of integrity to say I need more information and to be willing to listen to the provided information with enough providing willingness to work I think some of you stated about the responsibility of the corrupt institutions for our community members you know who are either human person or watching this video in the future I appreciate the involvement I appreciate the communication with us as your representatives on this board and please continue to advocate for the well being of our community thank you all thank you again to everyone who made this meeting possible with that our next regular board meeting is on Wednesday the 28th at the district office and with that I will adjourn this meeting at 2.04pm