May 28, 2025 Special County Board of Education

I WILL NOW RECITE THE LAND ACKNOWLEDGEMENT AS WELL.

[C. Land Acknowledgement]

LET US TAKE TIME TO HONOR THE ANCESTRAL CARETAKERS OF THE LAND ON WHICH WE STAND.

WE ARE CURRENTLY ON ELONEY TERRITORY.

SANTA CLARA COUNTY IS THE HOMELAND OF THE ACH MALONEY PEOPLE.

TODAY, INDIGENOUS PEOPLE CONTINUE TO PROTECT THE LAND.

IT'S IMPORTANT TO RECOGNIZE THE INDIGENOUS CULTURES WITHIN OUR COMMUNITIES.

AND REMEMBER THAT WE ALL GATHER, LIVE, LEARN, AND WORK ON THE TRADITIONAL LAND OF INDIGENOUS PEOPLE.

[D. Roll Call (Including Action on Absences if Necessary)]

I WILL NOW CONDUCT ROLL CALL.

I PRESENT BERTA AND PRESENT.

WHEN I CALL YOUR NAME, PLEASE RESPOND ACCORDINGLY.

VICE PRESIDENT SEAN PRESENT.

TRUSTEE LAURIE IS, IS, UH, UNWELL, BUT SHE IS IN THE NEIGHBORING ROOM.

UH, TRUSTEE PACHECO PRESENT, TRUSTEE ROCHA.

UH, TRUSTEE SPICER HERE AND TRUSTEE NAN HERE.

NOW ENTERTAIN A MOTION TO ACCEPT THE AGENDA.

PURSUANT TO THE PROVISIONS OF THE BROWN ACT BOARD, MEMBERS MAY PARTICIPATE REMOTELY FOR JUST CAUSE, INCLUDING WHEN SERVING THE BOARD OR ANOTHER PUBLIC AGENCY.

TRUSTEE NAN'S PRESENCE IN SACRAMENTO TODAY IS NECESSARY IN ORDER FOR HER TO FULFILL RESPONSIBILITIES ON BEHALF OF ANOTHER PUBLIC AGENCY.

SHE HAS INFORMED US SHE WILL BE PARTICIPATING REMOTELY THIS EVENING.

UNDER THIS EXCEPTION, IT IS NOT NECESSARY TO IZE HER LOCATION AND SHE'S PERMITTED TO PARTICIPATE REMOTELY.

I WILL

[E. Set the Agenda]

I HAVE A MOTION FROM VICE PRESIDENT CH SARAH.

WE HAVE A VERBAL EYE FROM TRUSTEE SPICER.

PLEASE VOTE IN BOARD DOCS IF YOU'RE ABLE TO.

I WOULD VOTE, UM, BE A VERBAL EYE TOO.

AND A VERBAL EYE FROM TRUSTEE NAN.

AND THAT MOTION PASSES UNANIMOUSLY.

NEXT WE'LL GO TO PUBLIC COMMENTS.

[A. At this time, members of the public may address the Board on any issue within the subject matter jurisdiction of the Board that is not listed on this agenda.]

THIS PORTION OF THE MEETING IS RESERVED FOR PERSONS WISHING TO ADDRESS THE SANTA CLARA COUNTY BOARD OF EDUCATION REGARDING ITEMS THAT ARE NOT ON THE AGENDA AND WITHIN THE SUBJECT MATTER.

JURISDICTION OF THE S-E-C-B-O-E STATE LAW PROHIBITS THE SANTA

[00:05:01]

CLARA COUNTY BOARD OF EDUCATION FROM DISCUSSING OR ACTING UPON NON AGENDA ITEMS. IT IS THE EXPECTATION OF THE SANTA CLARA COUNTY BOARD OF EDUCATION THAT EVERYONE BE TREATED WITH RESPECT AND CIVILITY.

SPEAKER COM PUBLIC SPEAKER CARDS MUST BE SUBMITTED AT THIS TIME.

ONCE WE BEGIN TAKING PUBLIC COMMENTS, WE WILL NOT BE ABLE TO ACCEPT ADDITIONAL COMMENTERS PURSUANT TO GOVERNMENT CODE SECTION 5 4 9 5 7 0.95.

THE S-E-C-B-O-E STRIVES TO MAINTAIN THE ORDERLY AND CIVIL CONDUCT OF ITS MEETINGS AND TO AVOID UNLAWFUL DISRUPTIONS.

THEREFORE, DURING PUBLIC COMMENT, WE INTEND TO KEEP A RESPECTFUL AND PEACEFUL ENVIRONMENT.

PLEASE NOTE THAT VERBAL ABUSE, THREATS AND PHYSICAL VIOLENCE WILL NOT BE TOLERATED.

INDIVIDUALS WHO ENGAGE IN THIS TYPE OF CONDUCT MAY BE ASKED TO LEAVE THE ROOM.

WE ASK THAT THERE BE NO CLAPPING, CHEERING, SNAPPING OF FINGERS, BOOING OR SHOUTING.

IF YOU WISH TO SUPPORT A PUBLIC COMMENT, YOU MAY SIMPLY DO SO WITH THE UNIVERSAL SIGN FOR APPRECIATION, WHICH CAN BE DONE LIKE THIS.

MODERATOR, DO WE HAVE ANY PUBLIC COMMENTS? WE DO NOT.

OUR INFORMATION AND STUDY SESSION THIS EVENING IS WITH OUR COUNTY SCHOOL SERVICES FUND, DR.

AS THAT CONCLUDES PUBLIC COMMENT,

[A. Informational Presentation and Study Session: County School Services Fund]

TOSS, WILL YOU PLEASE INTRODUCE THE INFORMATION ITEM? THANK YOU, PRESIDENT BERTA.

TONIGHT, UH, THE SANTA CLARA SANTA CLARA COUNTY BOARD OF EDUCATION IS HOLDING A STUDY SESSION TO DISCUSS THE COUNTY SCHOOL SERVICE FUND.

UH, TO BEGIN THIS EVENING'S PRESENTATION, I'D LIKE TO INTRODUCE ASSISTANT SUPERINTENDENT OF BUSINESS FACILITIES AND OPERATIONS, STEPHANIE GOMEZ, WHO WILL BE LEADING THE PRESENTATION AND ALSO INTRODUCING HER CO-PRESENTERS.

AND THEN THE MAY REVISION, WHICH IS WHAT WE HAVE NOW, WHICH HE RELEASED IN, UM, HIS PROJECTIONS THAT WERE AS OF MAY 14.

GOOD EVENING, PRESIDENT BERTA, SUPERINTENDENT TOSS AND TRUSTEES.

I HAVE LEILANI FROM SCHOOL SERVICES HERE WITH US THIS EVENING, AND SHE'S GONNA PROVIDE AN OVERVIEW OF THE STATE BUDGET AND WHERE WE ARE SINCE THE MAY REVISE.

SO I'LL TURN IT OVER TO HER.

THANKS STEPHANIE.

UH, SO AGAIN, MY NAME IS LEILANI ALDO ON BEHALF OF SCHOOL SERVICES OF CALIFORNIA.

THANK YOU FOR THE OPPORTUNITY TO BE HERE WITH YOU THIS EVENING.

UM, I WAS ASKED TO GIVE KIND OF AN OVERVIEW, UM, UNDERSTANDING THAT STEPHANIE AND HER TEAM WILL BE GOING DEEPER INTO, UH, THE BUDGET FOR SANTA CLARA COUNTY OFFICE OF EDUCATION.

SO I'VE ASKED TO GIVE AN OVERVIEW OF THE MAY REVISION, SO THE CURRENT ECONOMIC CLIMATE, AND THEN I'LL GIVE AN OVERVIEW OF STATEWIDE TRENDS THAT WE'RE SEEING AROUND CALIFORNIA BEFORE WE HONE IN A LITTLE BIT MORE ON WHAT WE'RE SEEING SPECIFICALLY WITHIN THE SANTA CLARA COUNTY REGION.

AND SO FOR THE CURRENT ECONOMIC ENVIRONMENT, I WILL BE FOCUSING ON, UM, THE MAY REVISION TO THE BUDGET THAT THE GOVERNOR RELEASED, UH, ABOUT TWO WEEKS AGO NOW ON MAY 14.

SO EVERY YEAR, UH, THE GOVERNOR RELEASES HIS, HIS PROPOSED BUDGET FOR THE BUDGET YEAR IN JANUARY.

AND THEN BY LAW, HE'S REQUIRED TO GIVE AN UPDATE BY MAY 14 EACH YEAR, WHICH IS INTENDED TO REFLECT UPDATED STATE REVENUES.

AND SO HE UPDATES THE, THE BUDGET ACCORDINGLY.

WELL, FOR, UH, THE 25 26 BUDGET PROPOSAL, THERE'S BEEN A LOT OF CHANGE SINCE JANUARY WHEN HE FIRST REVEALED HIS, UM, OR REVEALED HIS, HIS PROPOSAL FOR THE 25 26 BUDGET.

A LOT OF IT, UN UNSURPRISINGLY, IS DRIVEN BY CHANGES IN FEDERAL POLICY.

UM, CHANGES IN FEDERAL POLICY HAVE HAD SIGNIFICANT IMPACTS ON THE STOCK STOCK MARKET.

THERE'S BEEN, UM, NUMEROUS CUTS AT THE FEDERAL LEVEL THAT HAVE COME TO FRUITION OR THAT HAVE BEEN ANTICIPATED.

ONE NOTEWORTHY EXAMPLE THAT HAS HAD A SIGNIFICANT IMPACTS IN CALIFORNIA SPECIFICALLY, FOR EXAMPLE, IS, UH, CUTS TO MEDICAID, RIGHT, AND THEN OF COURSE, CUTS TO HEAD START, ET CETERA AS WELL.

UM, IN ADDITION TO THAT, CALIFORNIA HAS SEVERAL LAWSUITS PENDING AGAINST THE FEDERAL GOVERNMENT.

SO THAT COULD ALSO IMPACT THE CALIFORNIA ECONOMY SPECIFICALLY.

UM, AND ALL OF THIS HAS LED TO OVERALL THE REVENUES IN CALIFORNIA PROJECTED TO BE LOWER BY ALMOST $5 BILLION OVER THE THREE YEAR BUDGET WINDOW COMPARED TO THE BUDGET THAT THE GOVERNOR FIRST PROPOSED BACK IN JANUARY.

AND ALL OF THESE CHANGES AT THE FEDERAL LEVEL THAT HAVE HAPPENED JUST OVER THE LAST FEW MONTHS.

I MEAN, MAY, YOU MAY HAVE HEARD RIGHT, CALIFORNIA IS NOW THE FOURTH LARGEST ECONOMY IN THE WORLD.

WOO-HOO.

UM, BUT WHAT THAT ALSO MEANS, RIGHT, IS THE ANY CHANGES AT THE FEDERAL LEVEL ARE GOING TO HAVE A DISPROPORTIONATE IMPACT ON CALIFORNIA.

AND SO WE SEE THAT NOT JUST IN THE CURRENT YEAR, BUT IN THE PROJECTIONS FOR THE OUT YEAR AS WELL.

SO HERE, UH, WE SUMMARIZE THE CHANGES IN ESTIMATES FOR THE BIG THREE, UM, SOURCES OF REVENUE FOR THE STATE OF CALIFORNIA, WHICH ARE THE PERSONAL INCOME TAX, WHICH IS SHOWN IN YELLOW, THE CORPORATION TAX, WHICH IS SHOWN IN NAVY, AND THEN THE SALES AND USE TAX, WHICH IS SHOWN IN GREEN.

AND YOU WOULD AGGREGATE THAT FOR EACH BAR TO GET WHAT THE TOTAL REVENUES ARE.

AND THESE ARE GROUPED BY YEAR, RIGHT? SO THE PRIOR YEAR, WHICH IS 2324, THE CURRENT YEAR IN THE MIDDLE, 24, 25, AND THEN THE BUDGET YEAR 25, 26.

UM, AND THEN WITHIN EACH BAR, THERE'S A LOT OF INFORMATION HERE.

UM, THERE'S THE GOVERNOR'S BUDGET, WHICH REFLECTS WHAT HIS ESTIMATES WERE IN JANUARY,

[00:10:01]

AND THEN IN THE MIDDLE THERE, WE ALSO INCLUDED THE LAO, THE LEGISLATIVE ANALYSTS, WHAT THEIR OUTLOOK IS BECAUSE THEY ALSO PROVIDED AN UPDATED OUTLOOK, UM, ABOUT A WEEK BEFORE THE GOVERNOR RELEASED HIS MAY REVISION.

SO AGAIN, UM, THE HEADLINE HERE IS OVER THE THREE YEAR BUDGET WINDOW, IT'S A DECLINE OF $4.8 BILLION IN REVENUE.

UM, THAT'S INCLUDED IN THE GOVERNOR'S BUDGET PROJECTIONS OVER THE THREE, OVER THE THREE YEAR BUDGET WINDOW.

AND THE BIGGEST SOURCE OF THIS, UM, DECLINE IN REVENUES YOU'LL SEE IS REFLECTED IN 25 26, RIGHT? YOU CAN SEE THAT THE GOVERNOR'S BUDGET BAR IS CONSIDERABLY, IS NOTICEABLY HIGHER THAN WHAT IT IS SHOWING IN THE MAY REVISION FOR 25, 26.

AND IF YOU WANTED TO ADD UP THOSE NUMBERS FOR 25 26, THE GOVERNOR'S BUDGET, THE FORECAST FOR THE THREE REVENUE SOURCES WAS 206.3 BILLION COMPARED TO AT THE MAY REVISION ONE HUNDRED AND NINE, ONE NINETY SIX 0.3 BILLION, RIGHT? SO THAT'S A DROP OF $10 BILLION IN THE BUDGET YEAR THAT, UM, IS DRIVING A LOT OF THIS, UH, THE, THE 4.8 BILLION DECLINE OVER THE THREE YEAR WINDOW.

SO HONING IN NOW ON THE STATE FUNDS THAT COME TO EDUCATION, UM, SPECIFICALLY K 14 EDUCATION, RIGHT? SO PER CONSTITUTION PROPOSITION 98 ESTABLISHES A MINIMUM GUARANTEE, UH, WHICH IS A MINIMUM LEVEL OF FUNDING THAT THE STATE IS REQUIRED BY LAW TO PROVIDE TO K 14 EDUCATION.

SO THIS IS FUNDING, AND I SHOULD SAY TK 14 EDUCATION, RIGHT? SO THIS IS THE FUNDING THAT GOES TO LOCAL EDUCATIONAL AGENCIES THAT SERVE TK THROUGH 12 STUDENTS AS WELL AS OUR COMMUNITY COLLEGES IN THE STATE.

AND AS YOU CAN IMAGINE, UM, BECAUSE OF THE DECLINE ACROSS THE THREE YEAR, UH, BUDGET WINDOW AT THE STATE LEVEL FOR TOTAL REVENUES, THAT ALSO MEANS THAT THERE IS A SIGNIFICANT DECLINE IN THE PROPOSITION 98 MINIMUM GUARANTEE, RIGHT? SO ACROSS THE THREE YEAR BUDGET WINDOW, THE GOVERNOR IS HAVING TO SOLVE FOR A $4.6 BILLION DECLINE JUST FOR THE, THE, THE SCHOOL'S SHARE, THE TK 14 SHARE OF THE BUDGET.

UM, AND WHAT THIS MEANS, UM, BECAUSE THE GOOD NEWS IS RIGHT, THIS IS A HUGE DECLINE THAT THE GOVERNOR HAS TO ABSORB IN HIS BUDGET PROPOSAL.

THE GOOD NEWS, RIGHT, IS THAT THERE'S NO CUTS PROPOSED IN THE BUDGET AT THIS TIME.

HOWEVER, UM, WHAT THE GOVERNOR IS RELYING ON IS $2.9 BILLION WORTH OF ONE-TIME FUNDING TO SUPPORT ONGOING PROGRAMS, RIGHT? SO THAT'S GOING TO BE A CONCERN IN THE OUT YEAR, OUT YEARS, PARTICULARLY WHEN THE GOVERNOR IS ZEROING OUT THE RAINY DAY FUND, RIGHT? THERE'S A RAINY DAY FUND SPECIFICALLY FOR K 14 AND, UM, AS PART OF THE GOVERNOR'S BUDGET PROPOSAL, HE'S ZEROING THAT OUT COMPLETELY.

SO WHILE HIS BUDGET PROPOSAL IS TO KEEP US WHOLE, AGAIN, THERE'S NO CUTS, WE ARE GOING TO HAVE TO WORRY ABOUT THIS NEXT YEAR IF THERE ARE CONTINUED DEFICITS, BECAUSE THEN THERE'S NO RAINY DAY FUND TO TAP INTO, RIGHT? SO HE'S GOING TO HAVE TO BE A LOT MORE CREATIVE AND RESOURCEFUL A YEAR FROM NOW, UM, IF, IF THINGS CONTINUE IN, IN THIS DIRECTION.

SO NOW WE'RE GONNA GO INTO EACH OF THE FISCAL YEARS, UM, STARTING WITH THE CURRENT YEAR IN 24 25.

UM, WE'LL TALK ABOUT THE MINIMUM GUARANTEE HERE IN MORE DETAIL.

UM, SO IN THE GOVERNOR'S BUDGET IN JANUARY, THE CALCULATION, BECAUSE THERE, THERE'S A CALCULATED LEVEL TO WHICH THEY GET TO THE PROPOSITION 98 MINIMUM GUARANTEE.

AND IN JANUARY, THE CALCULATED LEVEL FOR THE PROP 98 MINIMUM GUARANTEE WAS $119 BILLION, ESSENTIALLY, RIGHT? WHEREAS AT THE MAY REVISION BECAUSE OF THE DECLINE IN REVENUES, ALL OF THAT, THAT FACTORS INTO THE FORMULA.

AND SO NOW THE UPDATED CALCULATION FOR THE PROPOSITION 98 MINIMUM GUARANTEE IN THE CURRENT YEAR IS $118.9 BILLION, RIGHT? SO THAT'S A DECLINE THERE, UM, IN THE MINIMUM GUARANTEE THAT IS OWED TO SCHOOLS.

HOWEVER, SINCE JANUARY, THE GOVERNOR HAS PROPOSED TO FUND SCHOOLS AT A LEVEL THAT IS LOWER THAN THE CALCULATED MINIMUM GUARANTEE.

AND SO THAT'S WHAT YOU SEE IN THE DARK BLUE, UH, BAR.

AND THAT APPROPRIATION LEVEL HAS NOT CHANGED AT THE MAY REVISION, RIGHT? SO THAT'S WHY IT REMAINS CONSTANT AT $117.6 BILLION.

THAT DELTA IS BASICALLY AN AMOUNT THAT'S GOING TO BE OWED TO SCHOOLS.

SO BECAUSE HE KEEPS THE PROPOSED APPROPRIATION LEVEL FLAT FROM JANUARY TO MAY, WHAT CHANGES IS THIS AMOUNT THAT IS CALCULATED TO BE OWED TO SCHOOLS.

IN JANUARY, THAT AMOUNT WAS CALCULATED TO BE $1.585 BILLION.

AND IN MAY, IT'S NOW $1.3 BILLION, RIGHT? THE KEY HERE, AND I'M, I BRING THIS UP BECAUSE THIS IS GOING TO BE A KEY PART OF NEGOTIATIONS BETWEEN NOW AND THE END OF THE FISCAL YEAR.

[00:15:01]

ULTIMATELY, THE KEY PART IN THIS SLIDE IS THAT THE GOVERNOR IS PROPOSING TO UNDER APPROPRIATE THE CALCULATED PROPOSITION 98 MINIMUM GUARANTEE FOR THE CURRENT YEAR.

WHY IS HE DOING THIS? BECAUSE WHAT HAPPENS IS THIS IS A, A FORECAST FOR WHAT THE CALCULATE THE, THE MINIMUM GUARANTEE WILL BE FOR 24 25.

THIS IS A, A PROJECTION, RIGHT? AND THEN WHEN ACTUAL REVENUES ARE CALCULATED AT THE END OF THE FISCAL YEAR, WHICH WILL BE JUNE 30, WHEN THE STATE IS ACTUALLY ABLE TO, WHEN THE STATE IS ABLE TO TAKE STOCK OF WHAT THE ACTUAL REVENUE LEVELS WERE, THEN THEY CALCULATE WHAT THE ACTUAL PROPOSITION 98 MINIMUM GUARANTEE IS, RIGHT? AND THEN THEY COMPARE THAT TO WHAT THE PROJECTION WAS.

AND, UM, OFTENTIMES THEY, THERE, THERE'S, THEY, THEY UNDER APPROPRIATED THE CALCULATION, AND SO THEN THEY OWE MONEY TO SCHOOLS.

WHAT THE GOVERNOR IS AFRAID OF IS THAT BECAUSE THERE'S SO MANY UNKNOWNS, SO FOR EXAMPLE, UM, THERE WAS A DELAY IN THE INCOME TAX FILING DEADLINE FOR LA COUNTY.

YES, IT'S ONE COUNTY, BUT IT'S ALSO A COUNTY THAT ACCOUNTS FOR 25% OF THE STATE'S POPULATION, RIGHT? SO IF YOU'RE A LOT, IF YOU LIVE IN LOS ANGELES, YOU HAVE UNTIL OCTOBER TO FILE YOUR INCOME TAXES.

SO THAT, THAT LEADS TO A GREAT UNCERTAINTY AND WHAT THE AMOUNT OF TOTAL REVENUES IS GONNA BE FROM THE STATE.

SO THE GOVERNOR'S CONCERN WITH ALL OF THIS UNCERTAINTY PLUS THE FEDERAL UNCERTAINTY WE JUST TALKED ABOUT A COUPLE OF SLIDES AGO, HE'S WORRIED THAT, OKAY, TODAY THE CALCULATION FOR PROPOSITION 98 IS ABOUT $118.9 BILLION.

I'M GONNA FUND YOU AT 117.6 BILLION BECAUSE I'M WORRIED THAT THE PROP 98 MINIMUM GUARANTEE IS ACTUALLY GONNA DROP.

AND IF I GIVE YOU MORE THAN 117 BILLION, BUT THEN IT ENDS UP, LET'S SAY THE CALCULATED ACTUAL AFTER OUR ACTUAL REVENUES HAVE COME IN, LET'S SAY IT'S JUST AN EVEN $118 BILLION, HE'S WORRIED THAT THE STATE COULD END UP, UM, OVER APPROPRIATING BY LIKE 900 MILLION, RIGHT? THAT'S WHY HE WANTS TO HOLD.

UM, HE, THAT'S WHY HE'S PLANNING TO UNDER APPROPRIATE.

BUT THAT DELTA, THAT 1.3 BILLION IS SOMETHING THAT AT THIS POINT, WE FEEL IS OWED TO SCHOOLS.

AND SO THAT IS GOING TO BE A NEGOTIATION BETWEEN NOW AND JUNE 30, UM, ON WHETHER OR NOT HE'S ACTUALLY GOING TO APPROPRIATE THE MIN, THE CALCULATED MINIMUM GUARANTEE THAT WE HAVE FORECASTED AT THIS TIME.

I KNOW THAT WAS VERY WONKY, SO HOPEFULLY THAT MADE, THAT MADE SENSE.

HAPPY TO, UM, ANSWER MORE QUESTIONS ABOUT THIS IF, IF, UM, IF THERE ARE FOLLOW UP QUESTIONS.

UM, SO NOW LET'S TALK ABOUT THE BUDGET YEAR.

SO FOR 25, 26, AND THIS IS GOING TO BE THE LARGE SOURCE OF THAT THREE YEAR DECLINE OF 4.4 BILLION.

IT'S BECAUSE OF THE DROP IN THE ESTIMATED MINIMUM GUARANTEE IN 25 26 SPECIFICALLY, YOU'LL SEE BETWEEN JANUARY AND MAY THAT DROP THERE, THAT DELTA IS $4.4 BILLION.

SO THAT IS THE LARGEST, UM, CAUSE FOR THE THREE YEAR DECLINE, UM, THAT WE TALKED ABOUT A FEW SLIDES AGO.

SO THAT'S THE MAIN THING TO HIGHLIGHT HERE.

I'LL PAUSE THERE, UM, BECAUSE THEN I'LL BE GOING INTO STATEWIDE TRENDS, BUT I, I'LL PAUSE THERE IF THERE ARE ANY QUESTIONS FOR ME REVISION OR SHOULD I KEEP GOING AND THEN JUST TAKE QUESTIONS LATER.

SORRY, ANY QUESTIONS OR COMMENTS? OKAY.

AND THANK YOU FOR ALL THE INFORMATION AND OVERVIEW.

I THINK THE CONTEXT IS REALLY IMPORTANT AS WE GO INTO THE BROADER BUDGET DISCUSSION.

AND I ALSO RECOGNIZE THAT THE TRUSTEES, YOU KNOW, WITH THE AGENDA BEING PUBLISHED HAVE HAD THE OPPORTUNITY TO REVIEW THE SLIDES AS WELL.

OKAY, GREAT.

THANK YOU SO MUCH.

GREAT.

THANK YOU, TRUSTEE BERTA, PRESIDENT BERTA.

UM, SO SOME OF THE STATEWIDE TRENDS, RIGHT? SO NOW WE'RE BACKING UP, NOT FOCUSED ON THE BUDGET, UM, BUT JUST STATEWIDE TRENDS IN, UH, K 12 ENROLLMENT IS WHAT WE'RE STARTING WITH.

AND YOU'LL SEE IT'S A STEADY, IT'S BEEN A STEADY DECLINE SINCE OH 8, 0 9.

UM, JUST TAKING ONE YEAR, FOR EXAMPLE, IN 1415 ENROLLMENT WAS 6,235,000 STUDENTS.

WHEREAS IN 2324, WHICH IS ABOUT ROUGH, THAT'S ABOUT THE LAST YEAR THAT WE HAVE ACTUAL DATA FOR IN 2324 ENROLLMENT WAS 5,000,837 MILLION STUDENTS.

SO THAT WAS A SIGNIFICANT DECLINE JUST WITHIN THAT WINDOW.

BUT THEN YOU'LL SEE THE PROJECTIONS, WHICH IS THE PURPLE BARS TO THE RIGHT, THE PROJECTIONS, UM, CONTINUE THIS TREND OF A DECLINE IN ENROLLMENT AROUND THE STATE.

AND THEN HERE WE SHOW IT BROKEN DOWN BY COUNTY ACROSS THE STATE.

SO YOU'LL SEE THERE ARE SOME BLUE PARTS OF THE STATE, WHICH IS SHE SHOWING, UH, GROW GROWING ENROLLMENT.

AND WHILE IT DOES SEEM GEOGRAPHICALLY RIGHT, LIKE IT'S A LARGE PART OF THE STATE THAT'S GROWING, UM, THE, WHAT WE SEE AS THE RED IS THOSE ARE THE URBAN EPICENTERS, RIGHT? I MEAN, JUST, WE JUST TALKED ABOUT LA COUNTY HAVING 25% OF THE STATE'S POPULATION.

SO EVEN THOUGH THERE'S A LOT OF GEOGRAPHICALLY BLUE, UM, THOSE ARE JUST SMALLER POPULATION AREAS.

BUT THIS IS, UH, INTENDED TO SHOW WHAT THE BREAKDOWN IS OF ENROLLMENT TRENDS BY COUNTY.

AND THEN HERE WE FOCUS IN ON THE NEXT COUPLE OF SIDES ON SANTA CLARA

[00:20:01]

COUNTY SPECIFICALLY.

SO THIS ONE IS JUST THE ELEMENTARY DISTRICTS.

THE NEXT ONE WILL BE THE HIGH SCHOOL DISTRICTS AND THEN THE UNIFIED SCHOOL DISTRICTS.

SO HERE, HERE YOU DO SEE THAT FOR YOUR ELEMENTARY DISTRICTS IN THE COUNTY, THERE'S QUITE A FEW OF THEM THAT ARE IN THE POSITIVE, RIGHT? THEY'RE GROWING IN ENROLLMENT.

AND I WOULD SPECULATE WITHOUT HAVING GONE INTO DETAIL ON MOUNTAIN VIEW WESTMAN OR LOS GATOS UNION ELEMENTARY, UM, ONE OF THE THINGS I WOULD SURMISE LOOKING AT THIS IS BECAUSE THEY'RE ELEMENTARY DISTRICTS, I WONDER HOW MUCH OF THIS IS DRIVEN BY THE EXPANSION OF TRANSITIONAL KINDERGARTEN, RIGHT? SO THIS IS A TREND THAT WE'RE SEEING ACROSS ELEMENTARY SCHOOL DISTRICTS IS, YOU KNOW, IF THERE IS AN INCREASE IN ENROLLMENT, IF THEY'RE DEFYING THE TREND OF DECLINING ENROLLMENT, IT'S TYPICALLY BECAUSE THEY'RE GROWING IN TK, RIGHT? BECAUSE OVER THE LAST FEW YEARS WE'VE DONE THE MARCH TOWARDS UNIVERSAL TRANSITIONAL KINDERGARTEN.

AND JUST TO POINT OUT HERE TOO, THIS ENROLLMENT DATA IS FOR THE LAST TWO YEARS.

SO THIS IS ALL POST COVID, SO IT'S 21, IT'S SHOWING THE ENROLLMENT TREND ACROSS 21, 22, 22, 23, AND 23, 24.

SO JUST THE LAST, THE LAST COUPLE OF YEARS HERE.

SO, UH, FOR HIGH SCHOOL DISTRICTS IT LOOKS VERY DIFFERENT, RIGHT? THE RED IS SCREAMING AT YOU.

UM, SO YOU'LL SEE THERE THAT THE TREND IS DIFFERENT, OBVIOUSLY FROM HIGH SCHOOL COMPARED TO THE ELEMENTARY SCHOOL DISTRICTS.

AND THEN THE, THIS LAST SLIDE HERE ARE THE UNIFIED DISTRICTS, UM, IN THE COUNTY.

AND YOU SEE WHAT THAT TREND IS, THAT BREAKDOWN IS AT THE, WITHIN THE COUNTY.

QUICK QUE QUICK QUESTION.

OH YEAH, I'M NOTICING A LOT OF THE, YOU KNOW, CAMPBELL UNION HIGH SCHOOL DISTRICT, SANTA CLARA UNIFIED OF THE ELEMENTARIES, MOUNTAIN VIEW, WESTMAN ARE A LOT OF THESE DISTRICTS, MOST OF THEM BASIC AID, UM, ON THIS SLIDE, I KNOW SANTA CLARA UNIFIED AS A BASIC AID.

UM, FREMONT UNION HIGH IS BASIC AID.

LOS GATO, SARATOGA UNION HIGH SCHOOL DISTRICT, I BELIEVE IS BASIC AID.

THIS IS OFF THE TOP OF MY HEAD.

SO I DON'T KNOW SPECIFICALLY DO YOU KNOW IF CATALYST, YEAH, UM, EAST SIDE UNION IS NOT, THEY'RE, THEY'RE STATE AID DISTRICT, BUT DISTRICTS THAT ARE BASIC AID THAT ARE EXPERIENCING GROWTH IS NOT NECESSARILY A GOOD THING FOR THE DISTRICTS FISCALLY, RIGHT? BECAUSE IT'S IF, IF IT'S BASIC AID AND THEY GET TO RETAIN THEIR PROPERTY TAX REVENUE, JUST DEPENDS ON THE AMOUNT OF THE RESERVES THEY HAVE.

BUT IF THEY GET MORE STUDENTS IN THE MONEY THEY BRING IN IN PROPERTY TAX YEARS, IT COULD BE AN ISSUE BECAUSE THEY DON'T HAVE ANY STATE FUNDING TO BACKFILL FOR ANY LOSS IN REVENUE OR IF THE REVENUE'S NOT ADEQUATE TO SUPPORT THE INCREASE IN STUDENTS.

YEAH, YEAH.

AS OPPOSED TO STATE FUNDED DISTRICTS, RIGHT? LCFF FUNDED DISTRICTS WHERE IF THEY'RE GROWING IN ENROLLMENT, THEN YES, THEN TYPICALLY THAT'S, THAT'S A GOOD THING, RIGHT? BECAUSE YOU'RE, YOU'RE GETTING MORE FUNDS TO ACCOMMODATE THOSE, THOSE ADDITIONAL STUDENTS.

INTERESTING TO SEE, YOU KNOW, WHAT THE IMPACT OR THE SIGNIFICANT DROP IN 2020.

DID THAT ANSWER YOUR QUESTION? OKAY.

AND THEN, UH, JUST WANTED TO SHOW HERE, YOU KNOW, THESE ARE THE 10 FASTEST DECLINING COUNTIES, AGAIN, FOR THAT SAME TIME PERIOD.

AND YOU'LL SEE SANTA CLARA'S RIGHT UP THERE.

YOU'RE THE THIRD, UM, FASTEST DECLINING COUNTY IN THE STATE.

UM, WHEREAS THIS IS, UM, THE OTHER SIDE OF THE SPECTRUM, THE 10 FASTEST GROWING COUNTIES IN THE STATE WITHIN, AGAIN, WITHIN THE SAME TIME PERIOD.

AND THEN ON THIS CHART, BASICALLY IT'S, IT'S THE RATIO, IT'S THE PROPORTION OF A DA TO ENROLLMENT.

SO BASICALLY WHAT, UM, THE BEST WAY TO THINK OF THIS, WHAT, WHAT THE ADA A TO ENROLLMENT MEANS IS THE ATTENDANCE RATE, RIGHT? SO, UM, YOU TAKE YOUR A DA, YOU DIVIDE IT BY THE ENROLLMENT, AND THIS IS THE PERCENTAGE YOU GET.

SO THE, I THINK THE IMPORTANT THING TO HIGHLIGHT HERE IS THE DIFFERENCE PRE COVID TO POST COVID, RIGHT? 2021, THAT WAS THE COVID YEAR.

THE STATE WAS NOT COLLECTING A DA INFORMATION, BUT I THINK IT'S A VERY STARK DIFFERENCE, RIGHT? AND AGAIN, THIS IS GROUPED SO THAT THE YELLOW BARS ARE ELEMENTARY, UM, ELEMENTARY DISTRICTS.

THE, UH, IN THE MIDDLE ARE THE HIGH HIGH SCHOOL DISTRICTS AND THEN THE UNIFIED DISTRICTS AND THE NAVY, UM, AND YOU SEE THE TRENDS ACROSS THE BOARD, RIGHT? PRE COVID ATTENDANCE RATES WERE SIGNIFICANTLY HIGHER.

NOT A SURPRISE, RIGHT? WE KNOW THIS NOW THAT THERE WAS A HUGE DROP IN ATTENDANCE DURING COVID, AND WE'RE JUST NOW STARTING TO CLIMB OUT OF THAT HOLE OF ATTENDANCE.

WE'RE JUST NOW STARTING TO IMPROVE ATTENDANCE RATE.

AND SO CERTAINLY THE, UM, THE HOPE IS THAT STATEWIDE AND ESPECIALLY WITHIN SANTA CLARA COUNTY, NO DIFFERENT, UM, THAT WHEN WE GET THE FINAL DATA FOR 24 25, IT'LL, UM, CONTINUE THAT IMPROVEMENT IN ATTENDANCE RATES AND THEN BEYOND, RIGHT? AS WE GET AS COVID, UM, IS MORE AND MORE IN THE BACK IN THE REAR VIEW MIRROR.

AND THEN HERE, JUST ANOTHER DATA POINT TO LOOK AT, THIS IS CHANGE IN BIRTH RATES.

SO THIS IS THE YEAR OVER YEAR CHANGE IN BIRTH RATE.

UM, WHAT YOU, WHAT'S NOT CAPTURED, BECAUSE IT'S ONLY SHOWING, UM, DATA FROM 2019 TO 2023, WHAT'S NOT SHOWN IN THIS CHART IS THAT IT, IT'S BEEN A STEADY DECLINE IN BIRTH RATES YEAR OVER YEAR SINCE 1992, RIGHT? IT'S

[00:25:01]

THERE'S VARIOUS REASONS FOR THAT.

PART OF IT DEFINITELY IS COVID RELATED, BUT THEN THERE'S OTHER THINGS THAT THE EXPERTS ON THIS, UH, BELIEVE ARE CONTRIBUTING TO THAT.

UM, 21, 22, RIGHT? THERE WAS, UM, UH, AN IMPROVEMENT IN THE BIRTH RATE.

IT'S STILL DECLINING A LITTLE BIT IN SANTA CLARA COUNTY.

UM, BUT THEN NOW IN, IN 2023 AND BEYOND, WE'RE EXPECTING THAT THE DECLINE IN THE BIRTH RATE WILL JUST CONTINUE THE WAY THAT IT WAS, UM, PRE COVID.

AND THEN NOW WE'RE GOING TO HONE IN A LITTLE BIT MORE ON THE LOCAL BUDGETS.

SO HERE WE SUMMARIZE THE OPERATIONS GRANT, UM, THAT ALL COUNTY OFFICES OF EDUCATION RECEIVE, INCLUDING SANTA CLARA COUNTY.

THERE'S OTHER FUNDING STREAMS THAT COUNTY OFFICES GET.

BUT, UM, WE FOCUS IN HERE ON THE OPERATIONS GRANT BECAUSE THIS GE IS, IS WHAT FORMS BASICALLY YOUR GENERAL FUND OR YOUR BASE GRANT, RIGHT? THIS IS THE PART THAT IS UNRESTRICTED THAT COMES TO THE COUNTY.

OTHER SOURCES OF FUNDING THAT COUNTY OFFICES LIKE SANTA CLARA RECEIVE FOR THE SYSTEM OF SUPPORT, THOSE ARE RESTRICTED SOURCES OF FUNDING, RIGHT? SO I DIDN'T SPEND ANY TIME INCLUDING THAT HERE, BUT THIS IS THE FORMULA FOR THE OPERATIONS GRANT THAT ALL COUNTIES RECEIVE.

UM, BUT THEN OF COURSE, SANTA CLARA COUNTY, RIGHT? YOU'RE SPECIAL BECAUSE YOU RECEIVE EXCESS PROPERTY TAXES.

UM, AND I KNOW THAT STEPHANIE WILL BE GOING INTO THAT A LITTLE BIT MORE, BUT THIS IS THE FORMULA, UM, FOR THE OPERATIONS GRANT.

AND THEN ONE OF THE THINGS I WANTED TO HONE IN ON AS WELL IS THE, THE VOLATILITY, RIGHT? IN FUNDING LEVELS OVER THE COURSE OF JUST ONE YEAR, RIGHT? WHEN ANY DISTRICT, ANY COUNTY OFFICE, ANY CHARTER SCHOOL, ANY LOCAL EDUCATIONAL AGENCY, RIGHT? WHAT HAPPENS WHEN, AS I MENTIONED, THE GOVERNOR RELEASES HIS BUDGET PROPOSAL IN THEN IN JANUARY, AND THEN AN UPDATED, UM, BUDGET PROPOSAL IN MAY, RIGHT? AND THE COLA CHANGES ALL THE TIME, RIGHT? SO WHAT THIS CHART, IT'S, IT'S FOR A DISTRICT, BUT IT'S THE SAME SIMILAR IMPACT ON COUNTY OFFICES, RIGHT? THAT WE'RE TRYING TO CONVEY THE VOLATILITY THAT HAPPENS IN TRYING TO PROJECT, UM, A DI AN LEA A'S BUDGET, RIGHT? SO THE GREEN LINE IN THIS EXAMPLE IS, YOU KNOW WHAT, UM, A DISTRICT WOULD'VE PRESENTED AT FIRST INTERIM WITH AN ESTIMATED COLA OF 3.94%.

BUT THEN IN THIS EXAMPLE, AT SECOND INTERIM, THE COLA PROJECTION THAT WAS, UM, INCLUDED IN THE GOVERNOR'S PROJECTIONS AT THAT POINT HAD DECLINED SIGNIFICANTLY USING A 0.76% COLA.

AND THEN AT THE ADOPTED BUDGET, THE COLA LANDED AT 1.07%.

BUT YOU CAN SEE HERE WITH THE DIFFERENT LINES, IT'S INTENDED TO ILLUSTRATE JUST, YOU KNOW, WHY THERE ARE THESE FLUCTUATIONS AND BUDGET PROJECTIONS, UM, THAT ARE PRESENTED BY AN LEA JUST WITHIN THE COURSE OF ONE YEAR, RIGHT? IT'S BECAUSE THEY'RE RESPONDING TO INFORMATION, UM, THAT'S PROVIDED BY THE DEPARTMENT OF FINANCE.

AND SO THAT CHANGES WHAT THE PROJECTIONS ARE, UM, EVEN JUST WITHIN THE SPAN OF A FEW MONTHS.

AND THEN HERE REFLECTING THAT, FOCUSING IN ON THE COLAS, UH, FOR THE LAST FEW YEARS JUST TO AGAIN, ILLUSTRATE HOW, UM, THINGS CHANGE SO SIGNIFICANTLY AND ALL, AND A LOT OF THE BUDGET NUMBERS AT A LOCAL EDUCATIONAL AGENCY ARE DRIVEN BY A COLA.

SO THAT'S WHY I THOUGHT THIS MIGHT BE HELPFUL.

SO THE WAY TO READ THIS CHART IS, SO FOR EXAMPLE, IN, UH, LET'S SAY 23, 24, UM, AT, WHEN THE BUDGET WAS SIGNED IN JUNE OF 2022, THE PROJECTED COLA FOR THE 2324 FISCAL YEAR WAS 5.38%.

BUT THEN WHEN THE GOVERNOR RELEASED HIS BUDGET PROPOSAL IN JANUARY, JANUARY OF 2023 FOR THE 2324 BUDGET YEAR, THE COLA THEN AT THAT POINT WAS 8.13%.

AND THEN WHEN THE MAY REVISION CAME OUT IN MAY OF 2023 FOR THE 2324 BUDGET, UM, IT WAS THE FINAL STATUTORY COLA LANDED AT 8.22%, RIGHT? SO A LOT OF FLUCTUATION THERE, JUST AGAIN WITHIN ONE FISCAL YEAR.

UM, BUT THEN EVEN ACROSS YEARS, RIGHT? GOING FROM 2223, A COLA OF 6.5600000000000005% TO 23 24, 8 0.22%, AND THEN IN 24 25, OUR STATUTORY COLA WAS 1.07%.

SO EVEN FROM ONE FISCAL YEAR TO ANOTHER, IT'S BEEN ACROSS THE BOARD, NOT TO MENTION WITHIN A FISCAL YEAR THAT THE, THE, THE PROJECTIONS FOR COLA CHANGE.

AND THEN THE LAST, UM, THE LAST ROW HERE IS THE CONSUMER PRICE INDEX.

I THOUGHT THAT WOULD BE HELPFUL TO INCLUDE AS WELL.

JUST TO NOTE THAT CPI HAS NOTHING TO DO WITH THE COLA, RIGHT? COMPLETELY DIFFERENT FIGURES.

THE FEDERAL, UH, FEDERAL PRICE, THE IMPLICIT PRICE DEFLATOR, THAT'S WHAT IT IS.

THE FEDERAL IMPLICIT PRICE DEFLATOR IS THE PRIMARY, UH, FIGURE THAT IS USED IN CALCULATING THE STATUTORY COLA.

AND THE DIFFERENCE BETWEEN THE FEDERAL IMPLICIT PRICE DEFLATOR IS IT'S A, IT'S THE SAME CONCEPT AS THE CPI, EXCEPT

[00:30:01]

IT'S THE BASKET OF GOODS FOR PUBLIC AGENCIES, RIGHT? WHEREAS THE CONSUMER PRICE INDEX, UM, CALCULATES WHAT THE AVERAGE COST IS FOR THAT FOR A TYPICAL CONSUMER, RIGHT? SO THE IMPLICIT PRICE DEFLATOR, WHICH IS USED TO CALCULATE THE COLA FOR LOCAL EDUCATIONAL AGENCIES, THAT FACTORS IN A DIFFERENT BASKET OF GOODS BECAUSE AGAIN, IT'S A STATUTORY COLA THAT'S CALCULATED FOR GOVERNMENTS, IT'S FOR GOVERNMENT USE.

AND SO THE BASKET OF GOODS JUST LOOKS DIFFERENT THAN, YOU KNOW, YOUR AVERAGE CONSUMER CPI, WHICH WOULD INCLUDE THINGS LIKE MILK AND EGGS, RIGHT? WHEN YOU'RE CALCULATING THE COLA FOR A LOCAL AGENCY, A CITY, A GOVERNMENT, MILK AND EGGS IS NOT GONNA BE PART OF A BIG PART OF THAT BASKET OF GOODS, RIGHT? SO HOPEFULLY THAT MAKES SENSE.

BUT AGAIN, SHOWING HOW THE CPI HAS CHANGED ALSO FROM YEAR TO YEAR.

AND THEN JUST ANOTHER CONTEXT POINT HERE, SHOWING, YOU KNOW, THE GOOD OLD DAYS WHEN THE STIRS EMPLOYER RATE WAS 8.88%, RIGHT? THAT WAS BACK IN 1314.

AND OF COURSE IT'S BEEN A SIGNIFICANT INCREASE TO THE, UM, THE EMPLOYER RATE THAT WE HAVE NOW FOR JURORS, WHICH IS 19.1%.

AND THEN PERS HAS ALSO, UM, THE EMPLOYER RATE HAS ALSO SIGNIFICANTLY INCREASED OVER THE LAST FEW YEARS FROM 1111 0.77% IN 13 40 13, 14 TO 26.81%, WHICH IS THE EMPLOYER RATE THAT, UM, UH, YOU'LL ALL HAVE TO BEAR FOR 25, 26.

AND THEN THE LAST SET OF SLIDES HERE, SO THIS ONE IS SPECIFIC TO SANTA CLARA COUNTY OFFICE OF ED.

UM, SO HERE WE THINK IT'S HELPFUL JUST TO ILLUSTRATE HOW, YOU KNOW, SANTA CLARA COUNTY OFFICE HAS BEEN FLAT FUNDED SINCE, SINCE THE INCEPTION OF, OF UM, THE LOCAL CONTROL FUNDING FORMULA AND COMPARING IT TO THE CUMULATIVE LCFF INCREASE FOR SCHOOL DISTRICTS.

RIGHT? AGAIN, JUST ILLUSTRATING THAT THE FUNDING FOR SCHOOL DISTRICTS IS WILD, WILDLY DIFFERENT THAN THE FUNDING THAT NOT JUST COUNTY OFFICES, BUT SPECIFICALLY SANTA CLARA COUNTY OFFICE OF ED BECAUSE YOU'VE BEEN FLAT FUNDED SINCE 1314.

UM, AND THEN HERE JUST SHOWING THE DIFFERENCE IN RESERVE LEVELS, RIGHT? AND UNRESTRICTED, UM, NOT RESERVE LEVELS, I'M SORRY, IN RESTRICTED VERSUS UNRESTRICTED REVENUES AND HOW THAT DIFFERENCE, HOW THAT IS DIFFERENT FOR A COUNTY OFFICE VERSUS A K 12 SCHOOL DISTRICT.

AND IN SANTA CLARA COUNTY SPECIFICALLY, WE RAN THE NUMBERS USING 2324 UNAUDITED ACTUALS.

YOUR AVERAGE K 12 DISTRICT IN SANTA CLARA HAS UNRESTRICTED REVENUES MAKE UP 81% OF THE BUDGET.

WHEREAS FOR SANTA CLARA COUNTY, IT MAKES UP 32% OF THE BUDGET, RIGHT? SO THE POINT THERE IS MORE OF THE MONEY THAT YOUR COUNTY RECEIVES IS FOR VERY SPECIFIC PURPOSES.

UM, ONE POINT ON THAT, YEAH, IF WE CAN GO BACK REAL QUICKLY, YEAH.

UM, THE 32.27% IS ALSO INCLUDED, INCLUDES THE RETURN OF LOCAL PROPERTY TAX.

SO THE AMOUNT OF ACTUAL REVENUE THAT WE RECEIVE IS ACTUALLY LESS BECAUSE THAT INCLUDES THAT 52 MILLION.

SO I WANNA HIGHLIGHT THAT.

AND THEN THE SECOND PIECE WITH THE RESTRICTED REVENUES IS, UM, WE DO A LOT OF REGIONAL PROGRAMS FEE FOR SERVICE THAT THE FUNDING IS RESTRICTED AND WE HAVE A LOT OF GRANT PROGRAMS COMPARED TO DISTRICTS.

THEY DON'T TYPICALLY HAVE THE PROGRAMS THAT WE SUPPORT.

SO THAT'S WHY WE'RE SIGNIFICANTLY HIGHER IN THAT AREA.

AND THEN LAST SET OF SLIDES HERE, UM, JUST SHOWING AVERAGE SALARIES WHERE, UM, THE COUNTY OFFICE RANKS TO YOUR NEIGHBORS.

SO, UM, AND THEN ALSO TO THE COUNTY ON AVERAGE.

SO SANTA CLARA COUNTY, UM, FOR, UM, A BEGINNING TEACHER.

UM, IT IS, YEAH, THIS IS FOR, YEAH, THIS IS FOR CERTIFICATED STAFF.

SO, UM, FOR YOUR BEGINNING TEACHER IN THE COUNTY OFFICE, UM, THEIR TOTAL COMPENSATION IS ABOVE THE COUNTY AVERAGE AS WELL AS ABOVE WHAT YOUR NEIGHBORS PAY.

UM, AND THEN ALSO THE SAME FOR UM, THOSE THAT ARE AT THE MAXIMUM AT THE TOP END OF THE UM, SALARY SCHEDULE.

UM, VERY HIGHLY COMPENSATED RELATIVE TO THE REST OF THE COUNTY, UM, RELATIVE TO YOUR NEIGHBORS, RIGHT? IN SANTA CLARA, MONTEREY, SANTA CRUZ AND SAN BENI, SAN BENITO COUNTIES.

AND THEN THIS IS THE LAST SLIDE JUST SHOWING WHERE WE ARE IN THE BUDGET CYCLE, RIGHT? SO, UM, AS I MENTIONED AT THE VERY BEGINNING, WE JUST DID THE MAY REVISION TO THE BUDGET AND THEN OF COURSE WE'RE EXPECTING, UM, THAT THE GOVERNOR AND THE LEGISLATURE WILL AGREE TO A STATE BUDGET BEFORE THE START OF THE FISCAL YEAR ON JULY ONE.

BUT THEN OF COURSE IN JUNE, RIGHT LOCALLY, UM, THE COUNTY WILL HAVE TO ADOPT IT TO LCAP AS WELL AS ITS BUDGET IN THE NEXT FEW WEEKS HERE, AS WELL AS THE STATE IS NEGOTIATING ITS BUDGET.

AND WITH THAT, I'LL ANSWER ANY QUESTIONS AND THEN TURN IT OVER TO STEPHANIE.

OTHER COUNTIES, ARE THESE, UM, JUST TO CLARIFY, ARE YOU COMPARING TO OTHER COUNTY OFFICES OR ARE YOU COMPARING TO OTHER DISTRICTS WITHIN SANTA CLARA COUNTY? SO LIKE SANTA, OH, THAT'S A GOOD QUESTION.

UH, VICE PRESIDENT SEAN? YEAH, I JUST HAD A QUICK CLARIFICATION ON, UM, THE SLIDE, JUST THE ONES PREVIOUS BEFORE, WHEN WE COMPARE TO

[00:35:01]

UM, SAN JOSE, BARA, PALO ALTO, IS IT THOSE OR IS IT LIKE SAN BENITO, ALAMEDA, SAN DIEGO COUNTY? THAT IS A GOOD QUESTION.

IT'S BEEN A FEW DAYS SINCE I PULLED THIS DATA TOGETHER.

I BELIEVE IT DOES INCLUDE THE COUNTY AVERAGE INCLUDES, UH, K 12 SCHOOL DISTRICTS IN THAT COUNTY AVERAGE.

AND SO THE REGION WOULD INCLUDE, UM, THAT AS WELL.

BUT I WILL DOUBLE CHECK ON THAT AND GET BACK TO YOU.

YEAH, I JUST WANTED TO SEE HOW WE COMPARE.

SO THANK YOU.

NO, THAT'S A GOOD QUESTION, PACHECO.

WELL, THE 32% OF, UM, UNRESTRICTED REVENUES THAT WE RECEIVE IS THAT, IS THAT COMPOSED OF THE 3% OF OUR BUDGET THAT COMES FROM A DA AND THE 44% THAT'S FUNDED THROUGH OUR FEE FOR SERVICE AND THEN WHATEVER REMAINS OF THE, YOU KNOW, COUNTY OPERATIONS IS BECAUSE ANYTHING THAT COMES FROM STATE AND FEDERAL GRANT, THAT'S ALL RESTRICTED, CORRECT.

ALL THOSE GRANTS.

SO THIS 32%, IT'S COMPOSED OF LIKE THREE OUT OF FOUR PARTS OF WHERE TOTAL REVENUES COME FROM.

IT WOULD BE A COMBINATION OF OUR COUNTY, UM, MANDATED SERVICE BASE GRANTS, WHICH WAS THE CALCULATION THAT ALANA HAD SHARED ANY OF OUR DIFFERENTIATED ASSISTANT MONEY.

AND ALL THAT WOULD BE IN OUR RESTRICTED REVENUES.

BUT IT WOULD BE THE EXCESS PROPERTY WITH OUR BASE FUNDING WOULD BE THE BULK OF THAT.

AND JUST IS, ARE ALL THE REVENUES THAT WE GET FROM EDA IS THAT UNRESTRICTED AS WELL? THAT MONEY GOES INTO THE FUNDING FOR THOSE SPECIFIC PROGRAMS TO RUN THOSE PROGRAMS. SO WHEN WE RECEIVE THAT MONEY FOR A D EIGHT, IT GOES TO SUPPORT THOSE PROGRAMS. 'CAUSE THAT'S WHERE THE REVENUE WAS GENERATED FOR THOSE STUDENTS.

SO IT IS SPECIFIC TO THOSE PROGRAMS. I SEE.

SO IT'S BASICALLY RESTRICTED, YEAH.

IT'S FOR THAT PURPOSE.

AND THEN FEE FOR SERVICE REVENUES, IS THAT UNRESTRICTED? NO, THAT WOULD BE IN THE RESTRICTED COLUMNS.

SO THAT'S WHERE YOU WOULD FIND LIKE YOUR SPECIAL ED MONEY WHERE WE GET THE FEE FOR SERVICE WHERE WE, THE DISTRICTS ELECT TO SEND THEIR STUDENTS TO OUR PROGRAMS. THAT MONEY IS RESTRICTED SOLELY FOR THAT PROGRAM.

AND THEN WE CHARGE THE DISTRICTS AS WE INCUR THOSE FEES.

SO THOSE BUDGETS ARE VERY SPECIFIC HEADSTART, ANY OF OUR GRANTS WOULD BE THERE AS WELL.

I SEE.

SO IT SOUNDS LIKE COUNTY OPERATIONS FOR MANDATED SERVICES, THAT'S THE ONLY PLACE WHERE UNRESTRICTED FUNDS ARE LOCATED.

THAT'S THE BULK, CORRECT.

AND THEN 32% OF OUR TOTAL REVENUES ARE UNRESTRICTED.

IS THAT, IS THAT HOW I UNDERSTAND THAT NUMBER? IT WOULD BE THE COUNTY MANDATED PORTION, WHICH INCLUDES OUR RETURN OF LOCAL PROPERTY TAXES, WHICH THAT IS, IT SAYS IT'S UNRESTRICTED, BUT THEN WHEN WE BRING IT INTO AS REVENUE, WE PUT IT AS A LIABILITY AND IT'S EARMARKED.

WE TECHNICALLY, IT'S RESTRICTED 'CAUSE WE'RE NOT ALLOWED TO SPEND THAT MONEY, BUT IT, THE WAY IT COMES IN, IT DOES SHOW TOGETHER AS PART OF THAT PERCENTAGE.

QUESTIONS, OTHER QUESTIONS, COMMENTS, TRUSTEE? CHRISTIAN, DID YOU HAVE ANY QUESTIONS OR COMMENTS? NOT AT THIS PORTION OF THE MEETING, BUT I DO HAVE QUESTIONS LATER.

OKAY, GREAT.

WELL THANK YOU VERY MUCH, LEILANI.

NEXT PRESENTATION.

ARE FE FEDERALLY FUNDED BY GRANTS.

UM, GOOD EVENING.

UH, SO I HAVE LAUREN WINN HERE WHO IS OUR DIRECTOR OF INTERNAL BUSINESS SERVICES, AND I WILL BE GIVING AN UPDATE ON OUR COUNTY SCHOOL SERVICES FUND.

UH, SO I WILL GO TO THE NEXT SLIDE.

SO THE THREE ITEMS WE'RE GONNA COVER IS AN OVERVIEW OF THE CALIFORNIA PUBLIC EDUCATION SYSTEM, WHAT WE DO AS A COUNTY OFFICE, AND HOW WE ARE FUNDED AND INCLUDED IN THAT, WE'LL REVIEW SOME OF THE BUDGET ASSUMPTIONS THAT WE HAVE IN OUR BUDGET.

AND THESE ASSUMPTIONS ARE AS OF THEY MAY REVISE INFORMATION THAT LEILANI JUST SHARED.

UH, SO THIS JUST GIVES AN OVERVIEW OF THE STATE, LOCAL LEVEL OF OUR CALIFORNIA PUBLIC EDUCATION SYSTEM.

AS A COUNTY OFFICE, WE ARE A SUPPORT SYSTEM FOR OUR SCHOOL DISTRICTS IN OUR COUNTY, AND WE SERVE AS A LIAISON WITH THE STATE, WHICH IS WHY WE DO SUPPORT A LOT OF REGIONAL PROGRAMS IN OUR AREA FOR OUR LOCAL DISTRICTS, BUT EVEN SOME OF OUR OTHER COUNTY OFFICES IN OUR RESPECTIVE REGION.

UM, SO I WENT OVER THAT RURAL RE REGIONAL OFFICE, BUT THE POINT I WANNA EMPHASIZE IS THAT AS A COE, THE ONLY AREAS WE ARE MANDATED TO PROVIDE FOR PUBLIC EDUCATION IS OUR COURT, SCHOOL, UM, PROGRAM.

SO THAT'S THE ONLY PUB, UH, PUBLIC EDUCATION PROGRAM THAT WE ARE MANDATED TO RUN.

THAT'S ALSO THE FUNDING THAT WE DO GET FOR THAT PROGRAM.

I WANTED TO HIGHLIGHT OUR BOARD PRIORITIES AND THEN WANNA LOOK AT THE THREE CATEGORIES OF SERVICES THAT OUR OFFICE PROVIDES.

SO WE HAVE OUR STUDENT SERVICES AREA, OUR EXECUTIVE AND ADMINISTRATIVE SERVICES, AND OUR INSTRUCTIONAL SUPPORT SERVICES.

UM, SO AS I MENTIONED, OUR MANDATED SERVICES IS OUR ALTED COURT SCHOOL PROGRAM.

AND THEN TO THE RIGHT WE HAVE OUR LIST OF ELECTIVE STUDENT SERVICES.

AND SO IT'S A COMBINATION OF GRANTS.

SO WE HAVE OUR HEAD START AND MIGRANT ED, WHICH

[00:40:01]

AND THEN WE HAVE OUR FEE FOR SERVICE, WHICH IS OUR WALTON WEST OUTDOOR EDUCATION, OUR SPECIAL EDUCATION PROGRAM.

WE ALSO HAVE OUR ALTERNATIVE EDUCATION PROGRAM THAT WE RUN, AND THERE IS A FEE FOR SERVICE COMPONENT IF DISTRICTS WANNA ENROLL THEIR STUDENTS INTO THAT PROGRAM.

THEY DO PAY, PAY A FEE FOR SERVICE AS WELL.

AND THEN WE HAVE OUR OPPORTUNITY YOUTH ACADEMY, WHICH IS OUR DEPENDENT CHARTER, WHICH WE DO PROVIDE, UM, CONTRIBUTION FOR.

AND THEN ON THE EXECUTIVE AND ADMINISTRATIVE SERVICES SIDE, THE MANDATED SERVICES ARE THERE, WHICH WE GO FROM TECHNOLOGY TO LIBRARY TO FINGERPRINTING, OUR TEACHER CREDENTIALING, FOSTER HOMELESS YOUTH AND ASSESSMENT AND ACCOUNTABILITY.

THE ELECTIVE SERVICES TO THE RIGHT ARE THINGS THAT ARE, OUR YOUTH HEALTH AND WELLNESS HAVE BEEN GRANT FUNDED.

AND THEN WE HAVE OUR INCLUSION, OUR INCLUSION WORK THAT IS FEE FOR SERVICE.

AND THEN ALL OF OUR INSTRUCTIONAL SERVICES THAT ARE HERE, IT'S A COMBINATION OF GRANTS.

SO OUR TOBACCO YOUTH YOUTH PREVENTION EDUCATION IS A GRANT FUNDED PROGRAM LIKE OUR PBIS EDUCATOR PREP.

THOSE ARE OUR COMBINATION OF FEE FOR SERVICE AND, AND GRANTS.

UM, SO THE CRITERIA TO, UM, APPROVE OUR ANNUAL COUNTY SCHOOL SERVICE FUND BUDGET, AND THIS IS, UM, BASED UPON THE STATE ADOPTED CRITER AND STANDARDS THAT WE HAVE TO MEET IS OUR BUDGET HAS TO MEET OUR STATE REQUIRED RESERVE OF 2%.

WE ALSO HAVE OUR LOCAL BOARD BOARD REQUIRED RESERVE OF 2%, AND WE HAVE TO HAVE A POSITIVE CERTIFICATION, WHICH MEANS THAT WE HAVE TO BE ABLE TO DEMONSTRATE WITH THE ASSUMPTIONS THAT WE HAVE AT THE TIME OF OUR BUDGET DEVELOPMENT, THAT WE'RE ABLE TO MEET OUR FINANCIAL OBLIGATIONS IN THE CURRENT FISCAL YEAR.

SO IN THE CASE OF THE BUDGET THAT WE WILL BE BRINGING BACK ON JUNE 11TH FOR OUR PUBLIC HEARING, THAT WOULD BE THE 25 26 FISCAL YEAR, 26, 27 AND 27, UH, 28 FISCAL YEARS.

AND THEN OUR ANNUAL AUDIT REQUIREMENTS.

SO WE HAVE TO UNDERGO AN ANNUAL AUDIT EVERY YEAR.

UM, I'M PLEASED TO SAY THAT WE DID PASS IT WITH THE A PLUS RATING.

AGAIN, I ALSO WOULD LIKE TO ADD THAT BECAUSE WE DO RECEIVE A LARGE, UM, LEVEL OF FUNDING, UH, FROM THE FEDERAL GOVERNMENT, WE HAVE A SINGLE AUDIT REQUIREMENT TO WHERE THE AUDITORS NOT ONLY LOOK AT OUR HIGH LEVEL OF HOW WE'RE, UM, CLASSIFYING OUR INCOME AND EXPENDITURES, BUT THEY ALSO LOOK AT HOW WE'RE SPENDING THE FUNDING IN EACH OF THOSE RESTRICTED, UH, FEDERAL PROGRAMS. SO THAT IS PART OF OUR ANNUAL AUDIT EVERY YEAR.

AND THEN JUST SOME OF THE HIGH LEVEL STUFF THAT LEILANI HAD TOUCHED ON IS JUST THE TRANSITION FROM THE POLICY CHANGES FROM HOW, UM, LEAS WERE FUNDED.

SO IT WAS REVENUE LIMITS PRIOR TO 2013, AND THEN WE TRANSITIONED TO OUR LOCAL CONTROL FUNDING FORMULA ON IN 2013 14.

UM, THE BIG DIFFERENCE BETWEEN A COUNTY OFFICE AND SCHOOL DISTRICTS AND CHARTER SCHOOLS WAS THAT COUNTY OFFICES WERE IMPLEMENTED FASTER.

SO WE WERE IMPLEMENTED THE VERY FIRST YEAR IN 1314.

AND SO WE HAVE BEEN FLAT FUNDED ESSENTIALLY AT THAT TIME.

UH, SCHOOL DISTRICTS WERE FULLY IMPLEMENTED IN 1819, BUT THEY GET A LARGER SPAN OF FUNDING BECAUSE IT'S BASED ON THEIR OVERALL A DA AND OUR A DA IS VERY LIMITED HERE.

IT'S ABOUT 3% OF OUR BUDGET.

UM, BASIC AID COUNTY OFFICE VERSUS BASIC AID SCHOOL DISTRICT.

SO WITH THE IMPLEMENTATION OF OUR LCFF HERE, UM, THE TRIAL COURT OFFSETS CAME INTO PLAY.

SO WHEN WE WERE FULLY IMPLEMENTED IN 1314, THAT'S WHEN WE STARTED SENDING MONEY BACK TO THE STATES.

IT WAS APPROXIMATELY 12 MILLION AT THAT TIME.

UM, AND SO THERE'S CURRENTLY 12 BASIC AID COUNTY OFFICES IN THE STATE OF CALIFORNIA THAT HAVE EITHER JOINED AT THE TIME OF IMPLEMENTATION OR HAVE JOINED OVER TIME AS THE PROPERTY TAX REVENUES HAVE GROWN IN THEIR RESPECTIVE AREAS.

ON THE SCHOOL DISTRICT SIDE, AS WE'VE MENTIONED IN THE PREVIOUS PRESENTATION, SCHOOL DISTRICTS THAT ARE BASIC AID COUNTY, UM, EXCUSE ME, BASIC AID SCHOOL DISTRICTS GET A RETAIN ALL THE PROPERTY TAXES.

IT'S BENEFICIAL IF THEY HAVE REALLY HIGH PROPERTY TAX AREAS.

HOWEVER, IF THE AMOUNT OF STUDENTS THEY GET EXCEEDS THE AMOUNT OF REVENUE THAT THEY DO RECEIVE, THEN THERE IS A FUNDING ISSUE THERE.

AND THEN ALSO LOOKING AT FUNDING OPTIONS.

UH, COUNTY OFFICES ARE VERY LIMITED IN SOME OF THE FUNDING THAT WE CAN DO.

SO WE HAVE OUR LCFF FUNDS, WE DO A LOT OF FEE FOR SERVICE, AND THAT'S HOW WE'RE ABLE TO PROVIDE ELECTIVE SERVICES FOR OUR OFFICE.

UM, THROUGH SOME, THROUGH A FORM OF COST RECOVERY.

UH, WE HAVE QUITE A NUMBER OF GRANTS AND CONTRACTS THAT WE BRING IN FUNDING FOR.

UM, BUT COMPARED TO SCHOOL DISTRICTS ON THE FACILITIES FUNDING SITE, WE'RE VERY LIMITED.

WE CAN'T PASS PARCEL TAXES, WE CAN'T PASS A BOND.

SO WE'RE REALLY LIMITED ON THAT.

AND WE ALSO DON'T HAVE THE OPPORTUNITY FOR LEASE REVENUE AT THIS TIME BECAUSE WE DON'T HAVE THAT LEVEL OF FUNDING.

AND SOME SCHOOL DISTRICTS, THEY, THEY DO GET GRANTS THROUGH THE STATE.

THEY GET TITLE FUNDS, UM, FOR THE CALIFORNIA DEPARTMENT OF EDUCATION.

BUT AS FAR AS GETTING LARGER GRANTS, MOST, MOST DISTRICTS DON'T HAVE THE LEVEL THAT THAT WE HAVE.

AND THEN WHEN WE TALK ABOUT OUR, UH, BASE FUNDING, THE 37 MILLION THAT WE RECEIVE FROM THE STATE THROUGH OUR LOCAL CONTROL FUNDING FORMULA, BECAUSE WE'RE NOT ALLOWED TO DO PARCELS OR BONDS, WE ARE REQUIRED TO MEET A 3% REQUIREMENT.

SO OUT OF THAT BASE FUNDING, WE HAVE TO CALCULATE 3% OF OUR COUNTY SCHOOL FUND UNRESTRICTED EXPENDITURES

[00:45:01]

TO MEET OUR, UM, RESTRICTED, UH, ROUTINE RESTRICTED MAINTENANCE ACCOUNT REQUIREMENT.

AND THAT MONEY HAS TO BE USED TO MAINTAIN OUR FACILITIES.

AND SO AS A SECOND INTERIM, BASED ON WHAT OUR, UM, UNRESTRICTED EXPENSES WERE AT THAT POINT IN TIME, WE'RE LOOKING AT 4 MILLION FOR 24 25, 3 0.9 MILLION THAT WE HAVE TO, UM, ALLOCATE FOR 25, 26 AND 3.9 MILLION FOR 26 27.

WHEN WE BRING THE BUDGET FORWARD IN A COUPLE WEEKS, THAT NUMBER WILL LOOK DIFFERENT BECAUSE IT'LL BE DEPENDENT UPON WHAT OUR PROJECTIONS WILL BE FOR THE 27 28 FISCAL YEAR.

AND THEN ALSO LOOKING AT HOW WE HAVE FINANCED SOME OF OUR FACILITIES IN THE PAST.

WE DID OUR CERTIFICATE OF PARTICIPATION, UH, FOR THIS BUILDING HERE AT RITER PARK.

WE PAID THAT OFF IN APRIL, 2024.

SO THAT WAS ESSENTIALLY COMING OUT OF OUR BASE FUNDING.

WE WOULD PAY THESE ANNUAL LEASE PAYMENTS TO PAY THE PRINCIPAL AND INTEREST, AND THAT'S WHAT THE FINANCE CORE WAS ESTABLISHED FOR.

SO WHEN WE CONCLUDED PAYMENTS OF THAT IN APRIL, WE ENTERED INTO A LEASE PURCHASE AGREEMENT FOR OUR SOLAR PROJECT.

AND SO THAT WAS APPROXIMATELY $12.3 MILLION.

WE DID THAT IN NOVEMBER OF 2023.

UM, THAT WILL OVER THE 20 YEAR PERIOD, THAT WILL GIVE US SOME RETURNS AND REDUCE OUR, REDUCE OUR ELECTRICAL COSTS.

UM, BUT THAT DOES COME WITH ANNUAL LEASE PAYMENTS THAT WE DO PAY OUT OF OUR COUNTY OPERATIONS FUND.

AND THEN THE SOLAR ENERGY PRODUCT IS TO HIGHLIGHT, THIS WAS SOME OF THE INITIAL SAVINGS THAT WE HAD, UH, WHEN I DID THE PRESENTATION BACK IN NOVEMBER.

UM, THE ONE ITEM THAT WE HAVE SOME UNCERTAINTY ON AT THIS POINT IS THAT, UM, THERE HAS BEEN SOME REDUCTIONS IN THE FEDERAL DIRECT TAX CREDITS FOR SOLAR PROJECTS.

THAT IS AN ITEM THAT THERE IS A LOT OF UNCERTAINTY RIGHT NOW.

SO WHEN WE DID THE PRESENTATION, WE WERE ANTICIPATING TO RECEIVE A $2 MILLION FEDERAL DIRECT TAX CREDIT.

WE DON'T KNOW IF THAT FUNDING WILL BE AVAILABLE, UH, ONCE WE FINISH THIS PROJECT, BUT WE ARE CLOSELY MONITORING THAT AND WE'RE HOPEFUL THAT WE WILL BE ABLE TO GET THAT TAX OFFSET.

AND THEN THIS JUST GOES OVER OUR FORMULAS THAT WE HAVE.

SO CDE UH, WHEN WE WERE FIRST IMPLEMENTED WITH LCFF, WE HAD OUR TARGET, UH, ENTITLEMENT, WHICH WAS THE COST OF LIVING ADJUSTMENTS.

AND THEN WE HAVE THE LLCF TRANSITION CALCULATION.

WE ORIGINALLY STARTED OFF ON THE TRANSITION CALCULATION AND THEN WHEN WE HAD A SMALL AUGMENTATION IN OUR FUNDING, WE TRANSITIONED TO THE ENTITLEMENT CALCULATION AND THE 2324 PERIOD THAT DID ALLOW US TO GET A COST OF LIVING ADJUSTMENT.

THE ONLY ISSUE WHEN WE TRANSITIONED IS THEN OUR COUNTYWIDE A DA WAS NO NO LONGER FLATS FROM WHEN WE WERE IMPLEMENTED.

SO THE SMALL AMOUNT THAT WE GET ON OUR BASE FUNDING IS NOW REDUCED BY OUR OVERALL COUNTYWIDE A DA DECLINE IN ENROLLMENT.

AND SO WE'VE TALKED ABOUT OUR FLAT FUNDING AND SO THIS IS OUR, UM, CHART THAT WE CONTINUE TO SHOW.

AND SO THESE ARE OUR ESTIMATES FOR OUR 2324 YEAR, WHICH IS 47.6 MILLION.

AND FOR 24 25, IT'S 52.3 MILLION.

AND THEN SOME OF THE BUDGETARY CHALLENGES.

CAN WE, CAN WE PAUSE YEAH.

BEFORE WE GET TOO FAR ALONG? YES.

AND THIS SEEMS LIKE A GOOD TRANSITION MOMENT, IF YOU DON'T MIND.

UM, I DON'T NEED TO GO FIRST, BUT I JUST WANTED TO CATCH HER BEFORE SHE FINISHED THAT SEQUENCE.

OKAY, NO WORRIES.

AND, AND BEFORE WE DO THAT, I ALSO JUST WANNA ACKNOWLEDGE, I KNOW WE DO HAVE PUBLIC COMMENTS THAT THE POSSIBLY ON THIS ITEM AND I WANTED TO MAKE SURE THAT WE WENT THROUGH THE SLIDES SO, UM, SO THAT THEY CAN MAKE PUBLIC IF THERE ARE PUBLIC COMMENTS THAT THEY CAN DO SO AFTER THE PRESENTATION.

BUT THANK YOU, UH, TRUSTEE RICHA, GO AHEAD.

AND THEN I'M GONNA GO BACK TO SLIDE SEVEN.

AND IT'S JUST TRYING TO GET A GOOD SENSE AND I'M PRETTY MUCH, PRETTY CERTAIN I KNOW THE ANSWER, BUT WHEN WE USE THE WORD ELECTIVE ON THIS SLIDE AND THE NEXT ONE, THAT MEANS THAT IT'S ENTIRELY A LOCAL DECISION THAT WE'VE DECIDED TO FUND THIS PROGRAM AND THERE ARE NO DOLLARS ATTACHED TO IT FROM STATE.

THIS IS ALL UNRESTRICTED GENERAL FUND DOLLARS, WHATEVER THE SOURCE MAY BE.

NO.

SO WHAT WE MEAN BY ELECTIVE IS WE ELECT TO, UM, PURSUE A GRANT OR TO PARTNER WITH OUR LOCAL DISTRICTS TO PROVIDE A FEE FOR SERVICE.

SO FOR EXAMPLE, HEAD START, WE HAVE ELECTED TO, UM, SUBMIT THE GRANT APPLICATION AND COMMIT TO OPERATING THAT PROGRAM.

UH, WITH OUR SPECIAL ED PROGRAMS, WE HAVE COMMITTED TO OPERATE THE PROGRAMS IN EXCHANGE FOR THE FEES THAT THEY PAY TO PROVIDE THE SERVICES, BUT IT'S NOT A STATUTORY MANDATE THAT WE OPERATE THOSE PROGRAMS. OKAY.

THAT'S VERY HELPFUL.

SO THEN I'LL ASK A FOLLOW UP QUESTION.

IS IT FULLY FUNDED IN THIS ELECTIVE WORLD OR ARE WE USING GENERAL FUND AND UNRESTRICTED DOLLARS THAT COULD BE USED IN OTHER WAYS? UH, IT DEPENDS ON THE PROGRAM.

AND ASSISTANT SUPERINTENDENT GOMEZ IS GONNA TOUCH ON SOME OF THE PROGRAMS WHERE WE'RE SUPPORTING OUT OF THE GENERAL FUND LATER ON.

UH, TYPICALLY, UH, GRANTS LIKE HEAD START, UM, THEY ARE SELF-SUFFICIENT AND WE'VE SHARED, WE HAVEN'T BEEN ABLE TO REIMBURSE THE FULL AMOUNT THAT WE'VE BEEN AWARDED IN OUR HEAD START ACCOUNT.

UM, OUR FEE FOR SERVICE PROGRAMS, UM, WE CHARGE THE FEES BASED ON ACTUAL COST.

GOT IT.

GUESS THAT SLIDE NINE, THAT ENTIRE SLIDE IS ELECTIVE PROGRAMMING THAT WE DO CONSISTENT WITH WHAT YOU JUST DESCRIBED? YEAH.

AND THEN I

[00:50:01]

AND THEN I HAD A QUESTION ABOUT THE AUDIT AND THAT WAS, UM, 11 AND THIS ANNUAL AUDIT.

AND FORGIVE MY POOR MEMORY, IS IT ALWAYS LOOK FORWARD OR DOES IT LOOK BACKWARD AT ALL? IT LOOKS BACK A FISCAL YEAR.

SO WHEN WE CLOSE THE BOOKS, UH, IT WILL LOOK AT THE PREVIOUS YEAR.

SO THE LAST AUDIT WAS FOR THE 2324 FISCAL YEAR.

SO IT'LL LOOK AT THE FI THE FISCAL YEAR THAT JUST CLOSED, CORRECT.

NOT CORRECT.

BEYOND JUST THE MONTH? CORRECT.

WANTED TO MAKE SURE.

AND THEN LASTLY, WHEN I SAW THE WORD FACILITIES FOR THE FINANCING, AND I ASKED THIS QUESTION EARLY ON WHEN I WAS ELECTED, WAS ABOUT THE FACILITIES WE HAD, AND IT WAS GENERALLY THE ANSWER WAS NONE EXCEPT THIS.

SO IS IN MY POOR MEMORY YET AGAIN.

ARE THERE OTHER FACILITIES THAT WE OWN OUTSIDE OF THIS RITER PARK? YES, WE HAVE THIS FACILITY.

WE HAVE OUR SNELL FACILITIES, SNO, AND THEN WE HAVE WALDEN WEST.

THANK YOU FOR THAT.

AND THEN AS FAR AS THE DOLLARS THAT YOU LISTED HERE, WERE THERE WAS A CERTAIN AMOUNT THAT WE WERE MANDATED OR REQUIRED TO SET ASIDE FOR FACILITY IMPROVEMENTS? ARE WE SPENDING THAT DOWN EVERY YEAR? UH, IT DEPENDS ON THE PROJECTS THAT WE HAVE.

I WILL SAY THAT WHEN WE DO ALLOCATE THE FUNDS, IT, WE HAVE PROJECTS THAT COVER FISCAL YEARS.

BUT I WOULD SAY WHEN WE DO BUDGET PROJECTS, WE ARE SPENDING A LARGE PORTION OF THAT.

WE ALSO HAVE SOME OF THAT FUNDING THAT WE'VE EARMARKED FOR WALDEN WEST.

WE HAVE QUITE A NUMBER OF, UM, MODERNIZATION PROJECTS OUT THERE.

'CAUSE THAT FACILITY IS VERY OUTDATED THAT WE HAVE SECURED FOR THAT PROJECT IN THE FUTURE.

AND THEN MY FOLLOW UP WAS GONNA BE THEN IF WE'RE SPENDING IT DOWN OR NOT, THEN ARE WE ALSO USING OTHER DOLLARS TO HELP FINANCE OR PAY FOR SOME OF THESE CAPITAL IMPROVEMENTS? IT WOULD BE OUR RMA FUNDS FOR MAINTENANCE, AND THEN WE HAVE OUR BOARD POLICY WHERE WE HAVE TO, UH, KEEP A CERTAIN PERCENTAGE FROM OUR COUNTYWIDE FUND FOR OTHER FACILITY PROJECTS.

OKAY, THANKS.

SO THOSE ARE THE FUNDING SOURCES.

LAST QUESTION WAS ON THE SOLAR ENERGY PROJECT AND IT'S SHOWING FINANCING COSTS AND THE NEGATIVE, AND THIS IS OVER A 25 YEAR PERIOD? YES.

DOES IT EVER ZERO OUT OR POSITIVE? YES.

AT THE END OF THE PROJECT, UH, BASED ON THE PROJECTION THAT WE, THAT WE WERE PROVIDED BY OUR CONSULTANT, I WANNA SAY IT'S THE, OVER THE 25 YEAR PERIOD, THEN WE START TO SEE WHERE THE, THE SOLAR PICKS UP AND THEN WE DON'T HAVE THE ELECTRICAL COSTS.

WE'RE ABLE TO, TO GENERATE SOLAR BY THAT TIME.

HOW MUCH? SO IT PAYS BACK THE ESCROW AND THEN WE ARE ABLE TO HAVE THE SAVINGS HOW MUCH FARTHER, BEYOND 25 YEARS? UH, I, I DON'T KNOW OFF THE TOP OF MY HEAD.

BUT I CAN GET THAT INFORMATION.

THAT'S FAIR.

BUT THEN I GUESS THE LAST QUESTION IS THAT WHAT, AND AGAIN, POOR MEMORY NOVEMBER, IS THAT WHAT WAS PRESENTED IN TERMS OF THE FINANCING PLAN THAT IT WAS GONNA BE THAT LONG BEFORE WE RECEIVED ANY? YES.

OH, OKAY.

THOSE ARE MY QUESTIONS.

OTHER QUESTIONS FROM TRUSTEES VICE PRESIDENT? I JUST HAVE A, A COUPLE OF QUESTIONS.

UM, AND THEY'RE, THEY'RE A LITTLE MORE GENERAL.

UM, YOU KNOW, I UNDERSTAND THAT OUR OFFICE HAS SUPPORTIVE SPECIAL EDUCATION SERVICES THROUGHOUT OUR COUNTY.

I WAS SURPRISED TO HEAR THAT NOT ALL COUNTY OFFICES DO THAT.

AND SO, UM, I WAS WONDERING HOW, HOW LONG HAVE WE BEEN DOING THOSE KIND OF SERVICES? THAT'S A GREAT QUESTION.

UM, I KNOW WE'VE BEEN DOING IT FOR A NUMBER OF YEARS.

I DON'T HAVE THIS SPECIFIC TIMEFRAME, BUT I THINK SINCE DR.

TOSS, I DON'T KNOW IF YOU KNOW THAT.

SO IT'S BEEN MANY YEARS IS MY UNDERSTANDING, LIKE 20 PLUS YEARS OR LIKE 10 YEARS MORE THAN 20.

SO LIKE THIS HAS BEEN A THING IN SAN CLARA COUNTY FOR A SIGNIFICANT AMOUNT.

PERFECT.

SO THANK YOU.

I SUSPECT THAT WE BEGAN PROVIDING SERVICES AT THE IMPLEMENTATION OF THE STATE'S MASTER PLAN IN AROUND 1975 UHHUH, WHERE COUNTY OFFICES IN SELPAS WERE INTRODUCED, UM, TO PROVIDE THE INITIALLY WAS LOW INCIDENT SERVICES MM-HMM .

UM, AND TYPICALLY IN COUNTY OFFICES, THOSE SUPPORTS AND SERVICES GROW OVER TIME.

SO I'M, I'M, I'M VERY PROUD THAT WE DO THAT AS A COUNTY OFFICE, YOU KNOW, UM, AND, AND I HOPE THAT WE CAN CONTINUE TO DO THAT.

AND I KNOW THAT THERE ARE SOME, UM, YOU KNOW, BUMPS THAT WE'RE HITTING WITH FUNDING IN REGARDS TO THAT.

BUT THEN MY OTHER QUESTION THEN IS WHEN WE HAVE, UM, STUDENTS THAT COME TO US FROM, FOR SPECIAL EDUCATION FROM OUR LOCAL SCHOOL DISTRICTS, HOW DOES THAT AFFECT OUR A DA FUNDING VERSUS LIKE THE DISTRICT'S A-D-F-A-D-A FUNDING OR DOES IT NOT? SURE.

I'LL TAKE THIS ONE.

WHOEVER WANTS THE ANSWER YEAH.

THAT DOES NOT IMPACT OUR A DA FUNDING BECAUSE WE ARE THE DISTRICT OF SERVICE.

SO, UM, ESSENTIALLY WE ARE A CONTRACTOR.

STUDENTS ARE THE FEE FOR SERVICE EXCHANGES THROUGH THE SELPA.

WHO PROVIDES THE SERVICE ON BEHALF OF THE DISTRICT, AND THE DISTRICT MAINTAINS, UH, THEIR, THEIR STATUS AS THE DISTRICT OF RESIDENTS.

I SEE.

AND SO THE ONLY FEES OR REVENUE WE RECEIVE FOR THOSE

[00:55:01]

AND THEN THAT'S, IS THAT, IS THAT FEE THEN PAID BY THE LOCAL SCHOOL DISTRICTS? YES.

I SEE.

AND THEN, UM, BUT WE DON'T, WE DON'T, UM, OKAY.

I, I SEE.

THAT'S, THAT'S HELPFUL TO, UM, WRAP MY HEAD AROUND.

UM, AND THEN THE OTHER QUESTION I HAD, APOLOGIES JUST GOING THROUGH THIS, UM, WELL, THE OTHER PART I THINK I'M GONNA GET INTO, WELL ARE WE GONNA BE TALKING A LITTLE MORE ABOUT THE LOCAL PROPERTY TAX RETURN A LITTLE LATER.

SO I'M GONNA ASK MORE QUESTIONS LIKE WHEN WE GET TO THAT POINT, PACHECO.

QUICK QUESTION ABOUT A DA.

SO DO WE ONLY REALLY RECEIVE A DA FOR OUR ALTERNATIVE EDUCATION? UM, COURT SCHOOLS? YEAH.

SO WE BRING IN A DA FOR OUR COURT SCHOOL.

WE BRING IN A DA FOR OYA OPPORTUNITIES ACADEMY, AND THEN THE COMMUNITY SCHOOLS AS WELL.

THOSE ARE THE THREE PROGRAMS THAT WE ACTUALLY GENERATE A DA FOR.

SO WHEN WE SEE DECLINING ENROLLMENT COUNTYWIDE BEING AN ISSUE, IS THAT IMPACTING OUR A DA FROM THOSE TWO STUDENT GROUPS? I WOULD SAY YES BECAUSE IT WOULD BE LESS STUDENTS THAT THE DISTRICTS WOULD BE ENROLLING IN OUR PROGRAMS, BUT IT WOULD ALSO HAVE A BIGGER, UM, IMPACT ON OUR OVERALL SERVICES BECAUSE THE LESSER STUDENTS THAT DISTRICTS HAVE, THAT THEY'RE NEEDING TO PROVIDE SERVICES FOR CAN ALSO IMPACT OUR FEE FOR SERVICE PROGRAMS. ALSO.

IT'S GENERALLY A GOOD THING THAT WE SEE LESS STUDENTS IN OUR COURT SCHOOLS.

SO, YES.

AND OUR 80, THERE'S OUR 80 DA THERE IS RELATIVELY LOW.

IT'S LIKE 50 COMPARED TO OTHER OFFICES THAT I'VE SEEN THE METRICS FOR.

IT'S ABOUT 50.

SO WHEN WE SEE AVERAGE DAILY ATTENDANCE DECREASES DECLINING ENROLLMENT COUNTYWIDE HAPPENING, IS THAT IMPACTING US? BECAUSE WE HAVE LESS STUDENTS TO SERVE FROM OUR LOCAL DISTRICTS AS LIKE THE COUNTY CONTRACTOR? YES.

MM.

YEAH, YOU'RE WELCOME.

TRUSTEE LAURIE, CAN YOU TURN ON YOUR MIC TRUSTEE LAURIE.

I WANTED TO KNOW, HOW LONG HAVE YOU BEEN USING GENERAL FUND, UH, DOLLARS, UM, TO, UH, TO HELP WITH ANY, UM, UM, SHORTFALLS IN REVENUES AND, UH, HOW, HOW, WHAT DO YOU THINK, HOW LONG WOULD THAT BE SUSTAINABLE? SO WE HAVE BEEN USING GENERAL FUND FOR SOME OF OUR, UH, ELECTIVE PROGRAMS, AT LEAST SINCE I'VE BEEN HERE.

AND I'VE LOOKED BACK, IT'S BEEN QUITE A NUMBER OF YEARS.

I WILL SAY FOR, IN THE CASE OF OPPORTUNITY YOUTH ACADEMY, THAT'S A DEPENDENT CHARTER.

SO THAT'S BEEN A CONTRIBUTION SINCE THE ESTABLISHMENT OF THAT.

IT IS SOMETHING THAT WE'RE GONNA HAVE TO LOOK AT CLOSER BECAUSE IF THE AMOUNTS OF THOSE CONTRIBUTIONS CONTINUE TO GO UP, WE NEED TO ENSURE IT DOESN'T EXCEED THE LEVEL OF FUNDING THAT WE RECEIVE FROM THE STATE FOR OUR MANDATED WORK.

UM, CAN I ASK THIS QUESTION NOW OR LATER? SO YOU TELL ME IF IT'S, IF YOU CAN INCORPORATE IT LATER ON, BUT IT WAS ALONG THAT, UH, LINE AROUND SLIDES EIGHT AND NINE WITH THE PROGRAMS SPECIFICALLY DIFFERENTIATING, UH, GOING INTO A LITTLE BIT MORE DETAIL WITH THE PROGRAMS, THE ELECTIVE PROGRAMS THAT WE'RE USING GENERAL FUND DOLLARS ABOUT HOW MUCH OR WHAT PERCENTAGE OF GENERAL FUND VERSUS, UH, FEE FOR SERVICE OR OTHER TYPES OF PROGRAMS. SO IT WOULD JUST BE HELPFUL TO GET A BETTER UNDERSTANDING A LITTLE BIT MORE WITH, UH, THE ELECTIVE SERVICE SERVICES SPECIFICALLY.

SO ON THE ELECTIVE SERVICES HERE, I'LL GO TO THE STUDENT SERVICES PIECE.

'CAUSE THAT IS AN AREA WHERE WE DO UTILIZE OUR GENERAL FUND.

I WILL SAY THE WALDEN WEST OUTDOOR EDUCATION PROGRAM IS ONE THAT WE DO USE GENERAL FUND SUPPORT FOR.

I HAVE A SLIDE THAT I'LL HIGHLIGHT IN LATER, UH, SLIDES ABOUT THAT AND IT'LL SHOW THE TREND OVER TIME ABOUT THE CONTRIBUTIONS, HOW THEY FLUCTUATED.

AND THEN THE OTHER ONE WOULD BE OUR OPPORTUNITY YOUTH ACADEMY.

SO THOSE ARE THE TWO, UM, ELECTIVE STUDENT SERVICES THAT WE U WE DO USE OUR GENERAL FUNDING FOR.

OBVIOUSLY THE SHORT, THE BUDGETARY SHORTFALLS THAT WE HAD.

AND THEN ON THE NEXT SLIDE, BETWEEN THE THE YOUTH HEALTH AND WELLNESS AND INCLUSION COLLABORATIVE, DO YOU HAVE A SENSE OF HOW MUCH IS, UH, GENERAL FUND? SO THE YOUTH HEALTH AND WELLNESS IS GRANT FUNDED AND THE INCLUSION COLLABORATIVE, THAT'S A, A FEE FOR SERVICE MODEL.

SO I DON'T BELIEVE THERE'S A LARGE PORTION THAT I CAN RECALL THAT WE USE GENERAL FUNDING FOR THOSE PROGRAMS. AND SO THOSE COME DIRECTLY FROM THE DISTRICTS ARE PAID, THOSE THAT COME THROUGH DISTRICTS, CORRECT.

AND THEN ON SLIDE 11, UM, ANOTHER QUESTION ABOUT THE AUDIT.

CAN YOU, 'CAUSE I KNOW WE'VE, WE'VE, UH, HEARD THESE RESULTS AND IT'S, UM, IT'S GREAT, OBVIOUSLY GREAT RESULTS TO HEAR.

CAN YOU HELP ME UNDERSTAND HOW THE AUDIT OR WHAT THE AUDIT ASSESSES IN TERMS OF HOW WE ACHIEVED THAT, A PLUS RATING? AND THEN I GUESS I'M JUST TRYING TO RECONCILE THE AUDIT AND

[01:00:01]

SO, UM, IS THAT TAKEN INTO ACCOUNT OR IS IT IRRELEVANT TO THE AUDIT? SO IT'S NOT RELATED.

WHEN THEY LOOK AT OUR, OUR, OUR, UH, END OF YEAR NUMBERS, FOR EXAMPLE, 2324, THAT IS WHEN WE CLOSE OUR BOOKS, WE COME BRING ON OUR AUDITED ACTUALS TO THE BOARD TO SAY, HERE'S WHAT WE FINALLY ENDED FOR THE FISCAL YEAR.

WHEN THE AUDITORS COME IN, THEY COME IN AND THEY LOOK AT ALL OF OUR FUNDING SOURCES, OUR ACCOUNTS.

ARE THEY IN COMPLIANCE WITH THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES? 'CAUSE THERE'S CERTAIN WAYS THAT YOU HAVE TO CATEGORIZE CERTAIN FUNDS IF THEY'RE FEDERAL, IF IT'S REVENUE, DEFERRED REVENUE, THEY LOOK AT MORE OF THE TECHNICAL PIECES OF IT.

THEY ALSO LOOK AT TO ENSURE THAT THERE'S ALLOWABILITY, WAS THE FUNDING SPENT CORRECTLY? WAS IT SPENT FOR THE RIGHT PURPOSE? ESPECIALLY WHEN WE GET TO THE SINGLE AUDIT PIECE FOR FEDERAL FUNDS.

SO THEY DO A DEEPER DIVE THERE AS WELL.

IT DOESN'T REALLY LOOK AT OUR BALANCES.

IT LOOKS AT OUR OVERALL ACCURACY OF OUR NUMBERS.

AND WAS THE MONEY SPENT APPROPRIATELY? OKAY.

AND THIS IS AGAIN FOR THE PREVIOUS, FOR 2224, CORRECT? YES.

AND WE'RE CURRENTLY, UM, WORKING WITH AUDITORS TO DO SOME INTRODUCTORY WORK FOR 24 25.

WE HAVEN'T CLOSED OUR BOOKS YET, BUT THEY COME IN EARLY AND THEY ALSO LOOK AT OUR INTERNAL CONTROLS.

DO WE HAVE GOOD INTERNAL CONTROLS TO MAKE SURE THAT, YOU KNOW, FRAUD CAN OCCUR? VARIOUS THINGS OF THOSE NATURE, SO.

THEN THE LAST QUESTION I HAD WAS ON SLIDE 15 ABOUT THE LEASE REVENUE.

YOU HAD MENTIONED THAT LEASE REVENUE WAS, WASN'T AN OPTION.

SO THE FACILITIES THAT WE DO HAVE, LIKE WALDEN WEST FOR INSTANCE, WE'RE NOT ABLE TO PURSUE ANY FUNDING FOR THE TIME, MAYBE THAT IT'S NOT BEING UTILIZED.

SO WE GET, WE DO RECEIVE A SMALL AMOUNT OF EVENT REVENUE.

A LOT OF DISTRICTS, WHAT THEY DO IS THEY'RE ABLE TO LEASE SOME OF THEIR FACILITIES.

THEY HAVE A LOT MORE FACILITIES THAN WE DO BECAUSE THEY HAVE THE ABILITY TO GENERATE REVENUE TO PURCHASE FACILITIES.

SO BECAUSE WE DON'T HAVE A LOT OF FACILITIES, WE HAVE STUDENT PROGRAMMING IN THEM.

SO WE, THAT'S WHAT I MEAN BY THE LEASE REVENUE PIECE.

YEAH, THAT MAKES SENSE.

I WONDER IF WE CAN STILL EXPLORE POTENTIAL OTHER OPPORTUNITIES.

THINK OUTSIDE OF THE BOX CREATIVELY, ESPECIALLY IF, IF, YOU KNOW, WE'RE HEARING THAT PROGRAMS AREN'T TO CAPACITY.

UM, IF WE HAVE EXTRA SPACE, I THINK REVENUE, MORE REVENUE WOULD ALWAYS BE GREAT TO HELP ADDRESS SOME OF THE SHORTFALLS.

TRUSTEE ROCHA, I WANTED TO FOLLOW UP ON ONE OF YOUR QUESTIONS AND YOU DOVE DEEPER THAN I DID.

I WANTED TO DIVE A LOT DEEPER, BUT I REFRAIN.

BUT I SAW THAT YOU MIGHT HAVE WANTED TO WEIGH IN ON THAT, AND THEN I'LL ASK A QUESTION IF YOU DID HAVE SOMETHING TO ADD.

I WAS JUST GONNA CONFIRM.

I, MY UNDERSTANDING OF THE AUDIT, UM, AUDIT TELLS US HOW WELL WE FOLLOWED THE RULES AND, AND THE SYSTEMS THAT WE HAVE IN PLACE.

IT DOESN'T ASSESS OUR FISCAL HEALTH.

SO EVEN IF WE HAD A NEGATIVE BUDGET, POTENTIALLY AN AUDIT COULD STILL SAY GREAT JOB IN FOLLOWING ALL THE RULES.

THAT'S KIND OF EXACTLY WHERE I WAS GONNA GO BECAUSE YOU USED THE WORD APPROPRIATELY.

AND I WAS GONNA ASK, DOES THAT MEAN LEGALLY AND WE WEREN'T SPENDING IT ON NUCLEAR ARMS, OR DOES THAT MEAN THAT WE SPENT DOLLARS THAT WE SHOULD HAVE BEEN SPENDING IN THE RIGHT PLACE? SO YOU JUST ANSWERED THAT QUESTION.

YEAH, I, I WILL HIGHLIGHT THOUGH, THAT IF WE OVERSPENT OR WE WERE IN A NEGATIVE SPENDING, THAT WOULD BE PICKED UP ON OUR AUDIT THAT WE WEREN'T LIVING OR SPENDING THE MONEY APPROPRIATELY.

SO THAT WOULD BE BROUGHT UP.

I WANNA CLARIFY THAT, BUT IT, IT IS LOOKING FOR THE APPROPRIATENESS.

I THINK THAT'S WHAT THE SUPERINTENDENT JUST SAID.

I ALSO JUST POINT OUT WHEN THE AUDITORS ARE HERE, THEY'RE NOT GOING LINE BY LINE THROUGH EVERY BUDGET.

THEY ARE SAMPLING, UM, ACROSS A NUMBER OF PROGRAMS. THEY'RE DIVING DEEP, BUT THEY'RE NOT, THEY'RE NOT LOOKING AT EVERY LINE IN THE BUDGET ACCOUNT, YOU KNOW, AUDITING EVERY PENNY.

VERY HELPFUL CONTEXT.

UM, PACE POLICY INSTITUTE, UH, SCHOOL SERVICES, FMA, A NUMBER OF NATIONAL, UH, ECONOMISTS WERE TALKING ABOUT THE FUNDING CLIFF, UM, FOR SCHOOLS AND, UH, PUBLIC EMPLOYERS.

WE CAN CONTINUE WITH THE PRESENTATION.

I WAS TRYING TO REMEMBER.

OKAY, SO JUST, THIS JUST GOES OVER SOME OF THE ITEMS THAT WE'VE DISCUSSED ABOUT JUST THE DECLINING ENROLLMENT, THE A DA DECREASES, UM, THE STATE BUDGET IS ONE OF THE ISSUES I WILL LIKE TO HIGHLIGHT.

THE INFLATIONARY PRESSURES WE'RE LOOKING AT THE UTILITY EMPLOYER COSTS.

WHEN WE LOOK AT EMPLOYER COSTS, THEY TOUCHED ON STIRS AND PERS.

SO, UM, WHEN THOSE PERCENTAGES INCREASE EVERY YEAR, IT'S APPLIED TO THE SALARIES OF OUR CURRENT STAFF.

SO THOSE DO FLUCTUATE EVERY YEAR AND THEY CONTINUE TO GO UP, BUT WE DON'T GET ADDITIONAL FUNDING.

AND THEN ALSO INSURANCE PREMIUM INCREASES.

OUR STATE IS GRAPPLING WITH A LOT OF INCREASES FOR DIFFERENT CLAIMS AND DIFFERENT LEGISLATIVE CHANGES FOR SOME OF OUR INSURANCE.

SO THAT IS SOMETHING THAT WE ARE ALSO FACING.

AND THEN THE FEDERAL ADMINISTRATION, UM, THERE WAS A MENTION I'LL HIGHLIGHT LATER ABOUT NON-CON CONTINUATION OF FEDERAL GRANTS.

WE'RE CONTINUING TO MONITOR THAT.

UM, BUT IT IS SOMETHING THAT WE ARE, UM, GETTING MORE INFORMATION EVERY DAY ABOUT CHANGES IN OUR FUNDING.

SO THAT IS SOMETHING THAT WE'RE BEING MINDFUL OF.

YES, DR.

CO.

I ALSO WANTED TO HIGHLIGHT THAT THESE BUDGETARY CHALLENGES HAVE BEEN BUILDING SINCE 2019.

[01:05:02]

UM, THE PANDEMIC PROVIDED LOTS OF ONE-TIME DOLLARS THAT, THAT MASKED THE ISSUE THAT HAD BEEN BUILDING FOR A NUMBER OF YEARS.

AND SO WHAT WE'RE SEEING NOW IS OBVIOUSLY THE, THE FUNDING CLIFF WITH THE LOSS OF THE, THE ONE-TIME COVID DOLLARS, UM, THAT WE'RE MASKING THE, THE DECLINES IN ENROLLMENT AND THE INCREASE IN COSTS.

AND ON TOP OF THAT, THE UNCERTAINTY, UM, FROM THE FEDERAL LEVEL, UM, THAT IT'S CREATING AN ADDITIONAL LAYER OF CHAOS ON TOP OF THE CHALLENGES WE WERE ALREADY DEALING WITH OR GOING TO HAVE TO DEAL WITH THIS YEAR.

AND THIS IS, AGAIN, STATEWIDE AND NATIONALLY.

AND THEN THIS SLIDE JUST HIGHLIGHTS SOME OF THE A DA INFORMATION THAT LEILANI HAD SHARED.

AND YOU CAN SEE IN 2122, THAT WAS WHEN WE HAD A BIG DIP BECAUSE OF COVID.

AND SO THAT'S JUST, WE'RE CLOSELY MONITORING THE, OUR COUNTYWIDE A DA NOW BECAUSE IT DOES HAVE A DIRECT IMPACT ON OUR BASE FUNDING THAT WE GET FROM THE STATE.

UM, SINCE WE DID TRANSITION TO THE NEW FORMULA, AND WE DO GET A SLIGHT COST OF LIVING ADJUSTMENT, THE DECREASE IN OUR COUNTYWIDE A DA DOES ACTUALLY REDUCE THE AMOUNT OF INCREASE IN FUNDING THAT WE DO GET.

UM, SO THAT'S WHY WE'RE, WE'RE JUST CLOSELY MONITORING THAT FOR 25, 26.

WE'RE PROJECTING, UH, A DECREASE FROM 24 25 OF 218,000 108, 200 16,653.

THE 24 25 NUMBERS WON'T BE VALIDATED TILL JUNE, UM, FOR RP ANNUAL NUMBERS.

BUT WE, WE JUST WANTED TO HIGHLIGHT THAT.

AND JUST A QUICK QUESTION.

THE ORANGE LINE IS DEMONSTRATING THE DROP, UM, FROM YEAR TO YEAR IN A DA.

RIGHT? OKAY.

YES, THAT'S CORRECT.

THANK YOU FOR CLARIFYING.

AND THEN THIS IS WHERE WE ARE IN OUR BUDGET AND FINANCIAL REPORTING TWO YEAR PROCESS.

SO THE BUDGET ADOPTION PIECES WHERE WE STARTED THIS FISCAL YEAR OFF FOR 24 25, AND I WILL TURN IT OVER TO LAUREN.

SO, UM, GOOD EVENING, PRESIDENT BERTA, DR.

TOSIN AND TRUSTEE.

SO THIS SLIDE ILLUSTRATE THE FUNDING SOURCES AS IS UE FUNDING SOURCES, HOW WE IT IN OUR SYSTEM.

UH, IT, UH, IS THE STANDARDIZED ACCOUNT CODE STRUCTURE INCLUDE 35 DIGIT ACCOUNT STRINGS.

AND, UH, WE CODE IT THAT WAY IN ACCORDANCE WITH THE CALIFORNIA, UM, SCHOOL ACCOUNTING MANUAL.

AND WE WANT TO ENSURE THAT WE COMPLY WITH THE GENERALLY, UH, ACCEPTED ACCOUNTING PRINCIPLES.

UH, THE RESOURCE VIEW THAT YOU SEE, SO-CALLED IN RED IS USED TO, UH, CLASSIFY OUR REVENUES THAT WERE RECEIVED AS WELL AS THE RESULTING EXPENDITURES IN ACCORDANCE WITH THE FUNDING RESTRICTIONS AND THE REQUIREMENTS.

AND, UH, WHEN YOU REVIEW THE SAX REPORT, YOU WILL SEE THE UNRESTRICTED AND RESTRICTED FUNDING SOURCES AND THE DATA PULLED FROM THE RESOURCES CO, UM, THE RESOURCE RESOURCES THAT WILL BE CODED IN THE SYSTEM.

THE UNRESTRICTED IS THE FUNDING FOR A DESIGNATED PURPOSE AND THE RESTRICTED THE FUNDING FOR, UH, SPECIFIED PURPOSE IS THE NEXT SLIDE.

I'M GONNA TRY TO DO, STEPHANIE.

AND THAT WAS APPROXIMATELY 249.3 MILLION.

SO THIS IS JUST A HIGH LEVEL WHERE WE STARTED THE FISCAL YEAR OFF.

UH, WE HAD, UH, OUR TOTAL REVENUES WERE 369.5 MILLION, UH, 32.52% OF THAT, OR 120 MILLION WAS OUR UNRESTRICTED, WHICH IS OUR FUNDING FOR DESIGNATED PURPOSE.

UM, PORTION OF THAT IS OUR LOCAL CONTROL FUNDING FORMULA, WHICH IS ABOUT 37 MILLION.

AND THEN THE RETURN OF LOCAL PROPERTY TAXES IS ALSO INCLUDED IN THAT.

AND THEN THE, THE BULK OF IT IS OUR RESTRICTED FUNDING, WHICH IS A COMBINATION OF OUR GRANT FUNDS AND ALSO OUR FEE FOR SERVICE DOLLARS.

UM, WANTED TO HIGH HIGHLIGHT SOME ADDITIONAL INFORMATION ON THE LEFT SIDE OF THE SLIDE ABOUT WHAT THE BREAKDOWNS ARE.

SO WE HAVE THE, UM, RETURN OF LOCAL PROPERTY TAXES IN THERE.

WE ALSO HAVE, IN OUR UNRESTRICTED, WE HAVE OUR TECHNOLOGY AND DATA SERVICES.

SO THIS IS REVENUE THAT WE HAVE, UH, EARMARKED FOR, UM, AN ERP, OUR, UH, FINANCIAL SYSTEM UPDATE FOR OUR DISTRICTS.

UM, SO THAT THAT FUNDING IS DESIGNATED FOR THAT.

SO WE HAVE OUR DIFFERENTIATED ASSISTANCE MONEY WHERE WE'RE SUP WE WERE, WE ARE REQUIRED TO PROVIDE SUPPORT TO OUR DISTRICTS THAT ARE CURRENTLY IN DIFFERENTIATE ASSISTANCE, UM, TRANSPORTATION SERVICES THAT IS FUNDING THAT WE GET FROM OUR FEE FOR SERVICE FOR SPECIAL EDUCATION.

AND THEN O OTHER PORTION OF THAT IS, UM, CONTRIBUTIONS THAT WE DO PROVIDE TO OUR ELECTIVE PROGRAMS. AND SO WE'LL GO INTO THAT MORE IN FUTURE SLIDES.

I ALSO WANTED TO HIGHLIGHT HERE THE BULK OF THIS.

THE, THE BREAKDOWN IS OUR STATE, FEDERAL, LOCAL, UM, BUT IT DOES INCLUDE OUR TITLE FUNDS AND IT ALSO INCLUDES, UH, OUR FEE FOR SERVICES FOR OUR ENVIRONMENTAL ED PROGRAM AND YOUTH HEALTH AND WELLNESS GRANTS.

AND THEN THIS IS A SNAPSHOT, THIS IS WHY WE TRY TO, IT'S A LOT OF DIFFERENT FUNDING SOURCES, BUT WE TRY TO BUCKET IT INTO FOUR DIFFERENT, UM, FUNDING SOURCES.

SO OUR LCFF IS THE 29% WHERE WE STARTED THE YEAR OFF, WHICH IS OUR MANDATED

[01:10:01]

SERVICES.

UM, WE HAVE OUR 21%, WHICH OUR STATE FEDERAL GRANTS.

AND THAT DOES FLUCTUATE AS WE GET NEW GRANTS OR AS GRANTS EXPIRE.

OUR A DA IS 3% AND THE LARGEST PORTION IS OUR, UH, FEES PAID BY SCHOOL DISTRICTS AT 47%.

AND I JUST WANNA PAUSE AND HIGHLIGHT THIS SLIDE.

AND BECAUSE, UM, ROUGHLY 47% OF OUR REVENUES COMING FROM FEES FROM THE LOCAL DISTRICTS WHO ARE ALSO FILLING THE FINANCIAL STRAIN, UM, OF, YOU KNOW, THE LIMITATIONS OF PUBLIC FUNDING FOR THE MAJORITY OF THEM.

UM, A NUMBER OF OUR DISTRICTS ARE ON, UM, OUR DEFICIT SPENDING RIGHT NOW.

AND SO THE, THE CURRENT BUSINESS MODEL RELYING ON THE 31 DISTRICTS IN OUR COUNTY, UM, DOESN'T APPEAR TO BE SUSTAINABLE AT, AT THE RATE, UH, COSTS ARE INCREASING.

UM, AND WE'VE TALKED ABOUT THIS IN SPECIAL ED.

UM, DISTRICTS NEED TO MAKE, UM, DIFFERENT DECISIONS NOT BECAUSE OF THE QUALITY OF OUR SERVICES, BUT BECAUSE THEY'RE MANAGING THEIR OWN, UM, ISSUES OF FISCAL SOLVENCY AND TRYING TO MAINTAIN, UM, THEIR, THEIR POSITIVE STATUS.

AND THEN WHEN WE, UH, HAD THE BUDGET ADOPTED IN 24 25, I WANTED TO INCLUDE THIS CHART BECAUSE THE COUNTY OPERATIONS PORTION DID INCREASE SLIGHTLY, UH, WHAT OUR PROJECTIONS WERE AT THE BEGINNING OF THE FISCAL YEAR.

BUT IT WASN'T BECAUSE WE WERE GETTING AN INCREASE IN OUR BASE FUNDING.

IT WAS BECAUSE, UM, OUR AMOUNT OF DIFFERENTIATE ASSISTANCE INCREASED A LITTLE BIT.

'CAUSE WE HAD MORE DISTRICTS THAT ENTERED INTO DA IN THE 24, 25 YEAR, BUT IT WAS ALSO BECAUSE OUR RETURN OF LOCAL PROPERTY TAXES INCREASED.

AND SO WANTED TO CARVE THAT OUT.

NOW, TRUSTEE LAURIE ALSO HAD A QUESTION THEN.

TRUSTEE SPICER.

DIFFERENTIATED ASSISTANCE IS A RESPONSIBILITY.

UM, SO DO WE HAVE ANY PROJECTIONS TO SEE HOW MUCH THE FUND FUNDING BY FEES IS GOING TO DECLINE IN THE FUTURE? ARE WE WORKING ON ANY, UH, PROJECTIONS? YES, WE'RE, UH, THAT WILL BE, UH, INCORPORATED INTO OUR BUDGET THAT WE BRING FORWARD FOR 25 26.

IT'LL HAVE THOSE PROJECTIONS FOR THE 25, 26 FISCAL YEAR, BUT ALSO THE, THE OUTLINE TWO YEARS, NO SEA SPICER ACTUALLY JUST A DEFINITION OF WHAT IS DIFFERENTIATED ASSISTANCE.

COUNTY OFFICES HAVE FOR, UH, LEAS WHO BASED ON THE, UH, CALIFORNIA DASHBOARD DEMONSTRATE AN ELIGIBILITY OR THE NEED FOR ADDITIONAL SUPPORT.

AND SO OUR TEAM WORKS WITH THE DISTRICT TEAMS. UH, FOR EXAMPLE, IF YOU AN LEA HAS A HIGH SUSPENSION RATE, UM, AND THEY'RE IN THE RED, OUR TEAM MIGHT WORK WITH THEM, UM, TO ADDRESS THOSE NEEDS.

IT COULD BE LITERACY, UH, ACADEMIC PERFORMANCE.

UM, THERE ARE A NUMBER OF INDICATORS, UM, THAT LEAS CAN BECOME ELIGIBLE.

AND I CAN'T SPEAK TO ALL THE DIFFERENT WAYS YOU CAN BECOME ELIGIBLE, BUT IT'S OUR MANDATE, UH, TO PROVIDE THEM DIFFERENTIATED ASSISTANCE OR TECHNICAL ASSISTANCE, UH, TO IMPROVE OUTCOMES.

AND THEN WHEN WE, UM, PASS OUR BUDGET FOR 24 25, WHEN WE'RE LOOKING AT OUR REVENUES, WE HAVE OUR CURRENT REVENUES, WHICH IS A 369.5 MILLION.

AND THEN WE HAVE CARRYOVER FUNDS THAT ARE FOR SPECIFIED PURPOSES THAT WE DO INCORPORATE INTO OUR BUDGET.

AND THIS ALLOWS US TO BALANCE OUR BUDGET.

SO WHEN WE GET TO OUR EXPENDITURE SLIDE, YOU WILL SEE THAT THE AMOUNT OF THE PROJECTED REVENUES AND CARRYOVER FUNDING WILL MATCH THE EXPENDITURE, UM, AMOUNT THAT WE HAVE ON THAT SLIDE.

BUT WE DO HAVE SOME OF OUR STATE AND LOCAL GRANTS AND CONTRACTS THAT ARE MULTI-YEAR GRANTS THAT WE DO CARRY FORWARD TO, UM, PROVIDE SOME SORT OF SUPPORT OR SERVICE AND THE, THE NEXT FISCAL YEAR.

AND THEN SOME OF OUR FUNDING, LIKE OUR DIFFERENTIATE ASSISTANCE MONEY RULES FORWARD, THAT'S A CARRY OVER TO CONTINUE TO PROVIDE SUPPORT.

SO SOME OF THE MONEY DOES ROLL FORWARD, BUT WHEN WE ROLL IT FORWARD INTO THE NEXT FISCAL YEAR, WE ALSO BUDGET IT IN THAT YEAR.

SO WE HIGHLIGHT THIS TO SHOW THAT THAT'S WHERE THE ADDITIONAL FUNDS ARE COMING TO SUPPORT OUR EXPENDITURE BUDGETS.

DO YOU HAVE A SENSE OF THE, THE DIFFERENTIATED ASSISTANCE, 4.3 MILLION THAT'S CARRY OVER AND WHAT THE AMOUNT IS CURRENTLY? OR I GUESS IF THAT'S A CARRYOVER AMOUNT, IS THAT THE TOTAL THEN THAT IS THE AMOUNT THAT WE WERE PROJECTING TO CARRY OVER FOR 23, 24 TO 24 25? WE DO GET AN ANNUAL ALLOCATION AND THE AMOUNT DOES GO UP IF WE HAVE MORE SCHOOLS THAT ENTERED INTO DA.

UM, SO I'LL HAVE TO GET BACK TO YOU ON WHAT THE AMOUNT IS THAT WE RECEIVED THIS YEAR.

BUT I DO KNOW OUR AMOUNT HAS CONTINUED TO INCREASE AS MORE SCHOOLS HAVE ENTERED INTO DIFFERENT SHADE ASSISTANCE.

AND THEN WHEN WE TAKE OUT OUR, UM, RETURN OF LOCAL PROPERTY TAX, WE HAVE TO CATEGORIZE THAT AS AN EXPENSE.

SO IT'S THE 4.3 PLUS THE, THE ANNUAL ALLOCATION BASED ON THE DASHBOARD.

AND THEN DEBBIE, JUST THANK YOU, DEBBIE, THAT WE'RE PAID FOR TWO YEARS NOW AND WE'RE PAID UP FRONT.

SO THAT'S WHERE THE BALANCE COMES.

SO IT'S, IT'S MULTI-YEAR FUNDING.

AND THEN THIS IS WHAT I HIGHLIGHTED ABOUT OUR EXPENDITURE CHARTS.

SO THE BULK OF, UH, THE BIGGEST EXPENDITURE AREA IS OUR SALARY AND BENEFITS.

[01:15:01]

UM, OUR SALARY AND BENEFIT PER PERCENTAGE IS 76.84%.

I'M GONNA TURN IT OVER TO YOU, LAUREN, STEPHANIE.

SO, UM, THIS SLIDE SHOW THE COUNTY SCHOOL SERVICE FUND EXPENDITURE BUDGET OVER THREE YEARS, UH, COMPARISON.

THE GREEN COLUMN SHOWS THE 2223 ANOTHER ACTUALS.

THE BLUE IS THE 2324 AND AND AUDIT ACTUALS.

AND THE YELLOW IS THE 24 25 ADOPTED BUDGET.

SO, UH, I WANT TO EMPHASIZE HERE THE INCREASES IN THE SALARIES AND BENEFITS OVER THREE YEARS.

AS YOU SEE HERE, UH, WE HAD 17% INCREASES IN SALARIES FOR THE LEADERSHIP TEAM AND APPROXIMATELY 20.5% SALARY INCREASES FOR, UH, THE BEGINNING UNITS OVER THE THREE YEARS.

AND, UH, THOSE INCREASES, ONGOING INCREASES IS NOT ONE TIME IS IMPACT HAS ACCUMULATED IMPACT ON OUR FUTURE BUDGETS.

AND, UH, ALSO WE HAVE ADDED TWO STEP AND COLUMNS ON THE SALARY SCHEDULE AS WELL AS THE ANNUAL STEP INCREASES FOR OUR, UM, EMPLOYEES.

ALSO, THE INCREASES YOU SEE THE RE THE INCREASE IN THE RETURN OF LOCAL PROPERTY TAXES GROW OVER THREE YEARS.

THAT DUE TO THE DECLINE IN THE COUNTYWIDE A DA AS WELL.

ANY QUESTION ON THIS SLIDE? SO THE NEXT I'M GONNA GO OVER, UM, THE SECOND INTERIM, UH, THE SECOND INTERIM BUDGET AND, UM, IS THE UPDATED BUDGET THAT OUR OFFICE, UM, REACTION, JUST OUR BUDGET FROM JULY ONE THROUGH JANUARY 31.

WE, UM, AS THE SECOND INTERIM WHEN WE UPDATE THE BUDGET, WE ALSO PROVIDE A MULTI-YEAR PROJECTION.

WE WANT TO ENSURE THAT OUR, UH, WE ARE FISCAL SOLVENCY FOR THE CURRENT BUDGET YEAR AS WELL AS THE, UM, TWO OUTLYING FISCAL YEARS.

SO THIS SLIDE SHOW US THE FUNDING SOURCES WIDE PROGRAM, THE TOTAL S-E-C-O-E REVENUES.

AS OF THE SECOND INTERIM, WE REPORTED, UH, APPROXIMATELY $431.65 MILLION.

AND YOU SEE IT HERE, THE BOOK OF THE REVENUES THAT WERE RECEIVED, UH, FUNDED BY THE FEES PAID BY THE SCHOOL DISTRICT.

AND WE HAVE THE, UM, REVENUES THAT WE RECEIVE FROM STATE AND FEDERAL GRANT FUNDED PROGRAMS, AS WELL AS THE 25% OF OUR, UH, FUNDING BY, FOR THE COUNTY OPERATIONS FOR MAN MANDATED SERVICE.

AND WE RECEIVE, UH, VERY MINIMAL, UH, REVENUE FUNDING SOURCES FOR A DA FUNDED PROGRAM.

SO THE, THIS BLOCK SHOW US THE MAJORITY OF, UH, OUR S-E-C-O-A FUNDING SOURCES FROM FUNDED BY FEES IS PROVIDE US MORE DETAIL.

THE PROGRAMS FUNDED BY, UH, DISTRICT, FOR EXAMPLE, LIKE SPECIAL ED OR, UM, EXTERNAL SERVICES THAT OUR TECHNOLOGY AND DATA SERVICES DE DE DEPARTMENT PROVIDED TO THE SCHOOL DISTRICT, AS WELL AS ONE WEST PROGRAM AND OTHER SERVICES FOR STATE AND FED STATE FEDERAL GRANT FUNDED UC.

WE HAVE HEAD START PROGRAM ONLY START, UM, AND MIGRANT PROGRAM, UH, FOR COUNTY OPERATIONS, FOR MENDY SERVICES.

WE HAVE THE DISTRICT SERVICES, UH, OUR INTERNAL BUSINESS SERVICES AS WELL AS, UH, TECHNOLOGY AND, UH, HUMAN RESOURCE SERVICES IN THE A DA FUNDED PROGRAM.

WE HAVE OYA PROGRAM, UM, OOH CHARTER AS WELL AS ALTERNATIVE AT PROGRAM.

AND THIS IS, UH, THE, THIS BLOCK SUMMARIZED THE S-E-C-O-E SALARIES AS OF THE SECOND INTERIM THAT WE REPORTED APPROXIMATELY 174 MILLIONS OF TOTAL OVER, UH, S-E-C-O-E BUDGET.

SO THE, THE MAJORITY OF OUR SALARIES IS FUNDED BY THE DISTRICT PROGRAM.

AND THEN, UH, THE REST OF IT FUNDED BY OTHER, UH, LIKE STATE AND FEDERAL GRANT FUNDED, AS WELL AS THE COUNTY OPERATIONS MANDATED FUND PROGRAM.

AND THIS IS THE FTES, UH, COMPARED TO WHATEVER THAT WE, UH, I JUST PROVIDED FOR THE SALARIES.

SO AS OF THE SECOND INTERIM, WE ESTIMATED APPROXIMATELY 1,531 FTES AND MORE THAN 50% OF THAT FUNDED BY THE FEES PAID BY SCHOOL DISTRICT.

UM, AS YOU SEE IT HERE, THE PERCENTAGE FOR SALARY COSTS, UM, IN THE PREVIOUS SLIDES DIFFERENT FROM THE FTES FOR EACH PROGRAM GROUP BECAUSE, UH, WE HAVE, UH, DIFFERENT GROUP OF DUE TO MULTIPLE FACTORS.

FOR EXAMPLE, WE HAVE, UH, MOST POSITION IN THE COUNTY OPERATIONS FOR MANDATED SERVICES, FLAT FUNDED PROGRAM OR CLASSIFIED

[01:20:01]

POSITIONS.

UH, AND WE HAVE POSITIONS IN THE FUNDED BY FEES, PAID BY SCHOOL DISTRICT, MAJORITY OF THAT CERTIFICATED POSITIONS, AND THEY ARE ON DIFFERENT SALARY SCHEDULES.

IF I COULD JUST ASK A QUICK QUESTION ON THAT SLIDE.

UM, DO WE HAVE POSITIONS THAT ARE FUNDED BY MULTIPLE SOURCES OR MIXED FUNDING? AND HOW DOES THAT FACTOR INTO THIS? SO YES, ON THE GRANT SIDE WE DO, SO FOR EXAMPLE, IN THE CASE OF HEAD START, HEAD START, WE HAVE OUR HEAD START GRANT.

WE HAVE OUR STATE PRESCHOOL MONEY.

WE DO HAVE SOME OF OUR GRANT PROGRAMS WHERE WE DO HAVE STAFF THAT ARE MULTI FUNDED DEPENDING ON THE WORK THEY DO.

SO IT COULD BE ONE FTE, BUT THEN THE FTE, IF IT'S IN THE GRANT BOX, THAT WOULD JUST BE REFLECTED AS ONE FTE WOULD BE HELPFUL POSSIBLY LATER ON IN THE PRESENTATION OR POSSIBLY, YOU KNOW, BEFORE WE SEE THE OVERALL BUDGET, JUST TO BETTER UNDERSTAND WHAT PROGRAMS ARE MIXED FUNDED, UM, AND HOW THAT KIND OF BREAKS DOWN SO WE UNDERSTAND THE FUNDS BEHIND WHAT'S NEEDED TO OPERATE THE PROGRAM OR, OR FUND THE POSITIONS.

OKAY, THANKS.

I WAS GONNA ASK A SIMILAR QUESTION.

MY NOTE IS EXECUTIVE STAFF ARE UNCLASSIFIED, I'M ASSUMING THAT THEIR, THEIR SALARIES ARE PAID THROUGH SOME OF THESE FUNDS IN SOME FORM OR OTHERS, SUCH AS I'LL USE YOURS AS EXAMPLE JUST 'CAUSE YOU'RE AS DIFFERENT DEPARTMENTS ARE FUNDING THAT ONE POSITION.

SO THEN THAT MAY BE THE CASE FOR OTHER STAFF THAT WORK ON A MULTITUDE OF PRO OF PROJECTS THAT THEY'RE FUNDED THROUGH DIFFERENT FUNDING SOURCES, DEPENDING ON HOW MUCH TIME THEY SPEND ON EACH ONE.

IS THAT PRETTY TYPICAL? WE DO HAVE SOME GRANTS WHERE WE DO HAVE SOME STAFF THAT ARE FUNDED.

SO FOR EXAMPLE, WE COULD HAVE ONE FTE THAT DOES, YOU KNOW, SUPPORTING TWO OR THREE DIFFERENT GRANTS.

THEY CAN'T, THEIR FTE CAN'T EXCEED ONE, RIGHT? 'CAUSE YOU CAN'T OVERSPEND YOUR TIME OR, OR, OR BE PAID BY THE SAME GRANT.

WE HAVE SOME POSITIONS LIKE THAT, BUT THE BULK OF OUR GRANT FUNDED POSITIONS ARE SPECIFIC FOR THE STAFF THAT DO THE WORK.

SO I WOULD SAY HEAD START IS PROBABLY OUR LARGEST GRANT PROGRAM.

AND WHAT WE DO IS WE USE OUR STATE PRESCHOOL DOLLARS.

UH, WE STARTED THAT A FEW YEARS AGO TO BLEND TO DO FULL DAY PROGRAM.

SO THERE'S A COST ALLOCATION PLAN WHERE THE STAFF, DEPENDING ON THE SITE OR THE POSITION THEY HAVE, ARE FUNDED BY, YOU KNOW, THIS PERCENTAGE HEAD START GRANT, THIS PERCENTAGE BY STATE PRESCHOOL.

I WOULD SAY THAT'S THE MORE COMPLEX, BUT FOR THE MOST PART, AN FTE IS FUNDED BY A SPECIFIC FUNDING SOURCE.

UH, BY THE BARGAINING UNITS.

YOU STEPHANIE.

AND I WANT TO EMPHASIZE AS WELL, UH, THESE FTES WE REPORTED IS, UM, BUDGETED IN THE COUNTY SCHOOL SERVICE FUND.

SO YOU DON'T SEE THE STATE PRESCHOOL IN HERE BECAUSE STATE PRE SCHOOL IS NOT PART OF THE COUNTY SCHOOL SERVICE FUND.

SO THIS IS JUST ANOTHER, UM, SLIDE TO IN ILLUSTRATE HOW OUR F FDA IS FUNDED BY EACH FUNDING SOURCES BY PROGRAM.

AND THIS IS THE FTES FUNDED BY FEES PAID BY SCHOOL DISTRICTS.

WE WANT TO BREAK DOWN MORE DETAILS INTO THE FTES THAT FUNDED BY FEES PAID BY SCHOOL DISTRICT THAT YOU SEE.

IT'S HERE, MAJORITY OF FTES THAT FUNDED BY THE SPECIAL ED PROGRAM.

AND THEN WE HAVE FTES, UH, FUNDED BY OTHER SERVICES AS WELL AS THE, UM, WAND AND WEST AND TECHNOLOGY IN, LIKE I EXPLAINED EARLIER, UM, EXTERNAL SERVICES THAT WE PROVIDED TO THE SCHOOL DISTRICT.

UH, OTHER SERVICES HERE ARE, UH, EXAMPLE OUR CREDENTIALING PROGRAM.

UH, WE HAVE EDUCATOR PREP PREPARATION PROGRAM, UH, TRAINING WORKSHOPS THAT WE PROVIDED TO THE SCHOOL DISTRICT.

AND WE COLLECTED, UH, REGISTRATION, REGISTRATION FEES FROM THE SCHOOL DISTRICT FOR, UM, UH, THAT INCLUDED IN THE OTHER SERVICES.

AND, UH, THIS IS THE FTA FUNDED BY CRANZ.

THIS IS PROVIDED TO MORE DETAIL, UH, HOW OUR F FDA IS FUNDED BY GRANTS AND MAJORITY OF THAT, UM, OUR F FDA IS FUNDED BY HRA PROGRAM.

IN, UH, THIS SLIDE YOU SEE THE SPECIAL ED.

WE HAVE LIKE MEDI-CAL PROGRAM.

WE HAVE EARLY START AS WELL AS THE SMALL PORTION FOR THE WORKABILITY PROGRAM AND FOR OTHER FEDERAL STATE GRANTS.

UH, WE HAVE, FOR EXAMPLE, LIKE WE HAVE INCLUSION EARLY EDUCATION EXPANSION PROGRAM, UH, WHICH CALLED AG TRIPLE EEP, UH, OR, UM, CALIFORNIA COMMUNITY SCHOOLS PARTNERSHIP PROGRAM.

WE ALSO HAVE THE SCHOOL-BASED MENTAL HEALTH SERVICES GRANT PROGRAM, UH, AND MENTAL HEALTH SERVICES PROFESSIONAL DEMO DEMONSTRATION GRANT PROGRAM.

THOSE TWO GRANTS WILL RECEIVE A DISTI DISCONTINUE, UH, NOTICE FROM THE FEDERAL AGENCY AND ALSO THE TOBACCO YOUTH PREVENTION EDUCATION PROGRAM.

SO THIS IS ANOTHER WAY TO LOOK INTO THE FTES FUNDED BY GRANT,

[01:25:01]

UH, AS YOU SEE, WE HAVE, UH, AGAIN, MAJORITY OF THAT FUNDED BY THE HEAD START PROGRAM.

SO YOU SEE THE, UM, THE CHART BY THE A CTA, UM, BARGAINING UNIT, LTS, THE LEADERSHIP TEAM AND, UM, PSYCHOLOGIST AND SEIU.

AGAIN, THIS IS THE FTE.

THIS IS THE FTE FUNDED BY A DA.

WE BROKE IT OUT BY THE OPPORTUNITY YOUTH ACADEMY FTE, UH, ALTERNATIVE EDUCATION COMMUNITY SCHOOLS AND THE COURT SCHOOL FTES.

SO THIS IS THE, UM, COUNTY SCHOOL SERVICE FUND COM COMBINED, UNRESTRICTED AND RESTRICTED REVENUES.

OUT OF THE SECOND INTERIM, UH, WE WANT TO COMPARE THE BLUE, UM, COLUMNS FOR THE FIRST INTERIM.

AND THE SECOND INTERIM IS IN ORANGE.

UH, THE STATE, IF YOU SEE IT HERE, THE STATE GRANTS AND CONTRACTS ARE INCREASED BY LIKE APPROXIMATELY $1.89 MILLION FROM THE FIRST INTERIM TO THE SECOND INTERIM FOR THE PROGRAMS, FOR EXAMPLE, LIKE INCLUSIVE EARLY EDUCATION EXPANSION, UH, WE HAVE CERTIFIED WELLNESS COACH, EMPLOYER SUPPORT GRANT, AND, UH, TWO PAY TIER ONE AND T TWO, UM, AND TECHNICAL ASSISTANT FOR THE TWO PAY PROGRAM FOR THE LOCAL GRANTS AND CONTRACTS AT UCS.

HERE, I WANT TO EMPHASIZE THAT THE INCREASE IS APPROXIMATELY $7.7 MILLION AND THE BULK OF THAT FOR, FOR THE MEDI-CAL BILLING OPTION PROGRAM.

AND WE ALSO HAVE THE INCREASES IN OTHER PROGRAMS UNDER LOCAL GRANTS AND CONTRACTS.

FOR EXAMPLE, THE FOSTER YOUTH EDUCATION SERVICES, THE YOUTH HEALTH AND WELLNESS, MOU, UH, AND ALSO THE INCREASES, UH, IN OUR BUDGET TO PAY FOR THE SOLAR PROJECT, UH, AGREEMENT.

AGAIN, UH, THIS IS THE COUNTY, OH, QUESTIONS.

SORRY TRUSTEE LARRY.

UM, SO CAN YOU TURN YOUR MIC ON PLEASE? SORRY.

SO OUR GRANTS TYPICALLY PROVIDED IN THE FIRST INTERIM, UM, GRANTS.

GRANTS, MY MICS ON IT, SORRY.

UH, GRANTS CAN BE RECEIVED ALL THROUGHOUT THE FISCAL YEAR.

IT JUST DEPENDS ON WHEN WE APPLY FOR THEM, WHEN WE GET THE NOTICE OF AWARD.

SO WHEN WE LOOK AT OUR BUDGETS FROM ADOPTED BUDGET TO FIRST AND SECOND INTERIM, IF WE DO SEE ANY FLUCTUATIONS IN OUR REVENUES AND THE GRANTS AND LOCAL CONTRACTS, IT'S BECAUSE WE'VE RECEIVED A GRANT IN THAT PERIOD OF TIME.

SO YOU'LL SEE AN INCREASE IN OUR REVENUE FOR THAT FUNDING SOURCE, BUT THEN ACCOMPANIED WITH THAT, YOU'LL SEE AN INCREASE IN OUR BUDGETS.

SO IT IS VERY COMMON TO RECEIVE GRANTS ALL THROUGHOUT THE YEAR.

BEGINNING OF THE MONTH AND THEN THE PAYROLL, UM, POSTED AT THE END OF THE MONTH.

SO JUST FROM THE, UM, GRAPHIC, IT SEEMS LIKE THE FIRST INTERIM IS, IS THAT HOW IT'S BEING DEPICTED? THAT, UM, 211 I GUESS WAS MILLION WAS PROVIDED IN THE FIRST INTERIM AND THEN IT WAS ADJUSTED TO 210.

YOU WANNA SPEAK TO THAT FOR OUR LCF? SHE HAS A QUESTION ON THE LCFF STATE AID ABOUT THE, THE DECREASE.

SO THE LCF AND STATE AID, UH, THERE'S A SLIGHTLY DECREASE BECAUSE WE USE NO, UH, WE USE THE, UM, P ONE WHEN WE, UH, CDA CERTIFIED LP ONE, UM, A DA REPORT THAT WE SUBMITTED AND WE USE THE, THAT DATA TO PROJECT IT, THE REVENUES THAT WE RECEIVED FOR LCFF AND STATE AID.

YEAH, AND, AND SO, AND SOMETIMES WE HAVE A SLIGHTLY DECREASED, DEPENDING ON THE COLA, UM, ADJUSTED COLA THAT WE RECEIVED FROM, UM, INSTRUCTION FROM THE STATE AS WELL.

SO THIS IS THE COUNTY SCHOOL SERVICE FUND, UH, COMBINED AND RESTRICT AND RESTRICTED EXPENDITURES.

AS OF THE SECOND INTERIM, AS YOU SEE IT HERE, WE SEE A SLIGHTLY DECREASE IN THE PERSONNEL COST, BUT WE SEE, SEE A SIGNIFICANT INCREASE IN BOOKS AND SUPPLIES AS WELL AS SERVICES AND OPERATING EXPENSES.

UH, SO OUR BUDGET PROCESS DURING THE FISCAL YEARS THAT EVERY, UM, REPORTING PERIOD, THE PROGRAM, THEY WILL REVIEW THE BUDGET AND THEY WILL, UH, REALIZE THE BUDGET BASED ON THE PROGRAMMATIC AND DEPARTMENTAL NEEDS AS WELL AS WE HAVE, LIKE IF WE HAVE ONE, THE PROGRAM HAVE ONE TIME FUNDING, IT'S GONNA BE ALLOCATED AND FACTOR INTO THE BUDGET ADJUSTMENT AS WELL DURING THE INTERIM REPORTING PERIODS.

AND, UM, THE, THE, THE SERVICES FOR, UM, OPERATING SERVICES AND OPERATING EXPENSES THAT ALSO INCLUDE IN OUR INSURANCE.

AND, UH, YOU, IF YOU LOOK INTO OUR TAX REPORT FOR THE SECOND INTERIM, YOU WILL SEE THE ACTUAL INSURANCE EXPENSES AT THE SECOND INTERIM.

AS OF THE DATE THAT WERE REPORTED IS LIKE, UH, SIGNIFICANT HIGHER THAN WHAT WE BUDGETED IT IS BECAUSE OF THE, UM, HOW WE PAID THE INSURANCE.

WE PAID THE INSURANCE AT THE

[01:30:01]

SO YOU SEE THE DIFFERENT, AND THEN ONCE THE PAYROLL POSTED, WE WILL, UM, ALLOCATE THE EXPENSES TO THE SELF-INSURANCE FUND, UH, PROPERLY.

CAN YOU EXPLAIN A LITTLE BIT MORE ON THE BOOKS AND SUPPLIES? WHAT THE ONE-TIME FUNDING WAS? SO, UH, DURING THE, LET'S SAY DURING THE, UM, AFTER WE ADOPTED THE BUDGET AND THEN DURING THE FISCAL YEAR, THE PROGRAM WILL REVIEW THE BUDGET TO SEE HOW, UH, THEY SHOULD REALIZE THE BUDGET.

FOR EXAMPLE, IF THE PERSONNEL COST NOT INCURRED LIKE THE HEAD START PROGRAM, THEY NOT INCUR THE, IN THE PERSONNEL, UH, COST.

AND THEN THEY WILL REALI THE BUDGET FOR TO THE OTHER C CATEGORY, UM, WITHIN THE BUDGET.

SO TO MEET THE PROGRAM NEEDS.

SO IF I, I WILL GIVE A REAL EXAMPLE.

UH, I AM IN OUR OFFICE, WE WILL BE POSTING A POSITION FOR A VACANCY FOR AN EXECUTIVE ASSISTANT.

THE BUDGET SAYS THIS POSITION STARTS JULY ONE.

THE REALITY IS THE PERSON MAY NOT START UNTIL AUGUST 15TH.

AND SO WE'VE SAVED A CHUNK OF CHANGE IN SALARY OF BENEFITS AS WE GET THROUGH THE END OF THE YEAR.

I MEAN, IT'S OKAY, WE HAVE A CHUNK OF CHANGE.

WE SAVE $15,000, WE'LL SPEND THIS ON A NEW COMPUTER, AND STAFF CAN NOW ATTEND A CONFERENCE BECAUSE WE HAD SAVINGS AND PERSONNEL COSTS THAT WERE MOVING, UM, FROM PERSONNEL TO BOOKS AND SUPPLIES, OR WE MIGHT INCREASE TRAVEL COST OR SOMETHING ELSE.

AND SO SAVINGS FROM THE, BETWEEN THE FIRST AND SECOND INTERIM AND MAYBE PERSONNEL OR ANOTHER AREA IS MOVED TO A DIFFERENT SPOT IN THE BUDGET.

THAT'S HELPFUL.

I GUESS I'M JUST STRUGGLING TO UNDERSTAND WHY IT WOULD BE ALLOCATED FOR BOOKS AND SUPPLIES AS OPPOSED TO A RESERVE OR OTHER PERSONNEL POSITIONS.

SO FOR, FOR EXAMPLE, HEAD START, IF I'M NOT ABLE TO, UM, CARRY THOSE DOLLARS OVER AND USE THEM FOR PERSONNEL, THERE'S, THERE'S NO RATIONALE TO DO THAT BECAUSE I'D LOSE THE DOLLARS IF I HAVE SAVED A, A FRACTION OF DOLLARS FROM AN UNFILLED PERSONNEL OR STAFF POSITION, I CAN'T HAVE A, YOU KNOW, A 0.02 FTE.

AND SO, AND IF ADDING MORE STAFF IS GOING TO HAVE ONGOING EXPENSE, IT'S A ONE-TIME SAVINGS.

AND SO USING A, USING THOSE ONE-TIME SAVINGS AS OPPORTUNITIES TO, UM, REPLACE EQUIPMENT OR BOOKS AND SUPPLIES IN THE PROGRAM OR INCREASE STAFF TRAINING, UM, THOSE ARE SOME OF THE ONE-TIME EXPENSES THAT TYPICALLY PROGRAM MANAGERS WILL USE FOR ONE-TIME MONIES OR SAVINGS IN THEIR BUDGET.

UM, I'D ALSO LIKE TO HIGHLIGHT THAT MAJORITY OF OUR FUNDS ARE REIMBURSEMENT BASED.

SO IN THE CASE OF THE HEAD START GRANT, IF IT'S 38 MILLION, THEY HAVE THE 24 25 FISCAL YEAR TO SPEND.

SO IF THEY DID HAVE VACANCIES OR SAVINGS AND SALARY AND THEY THOUGHT THERE WAS A NEED OR THEY SAW A POTENTIAL INCREASE IN EXPENSES AT SECOND INTERIM FOR LIKE BOOKS AND SUPPLIES, THEY WOULD REALLOCATE THE BUDGET THERE.

IT'S THE SAME AMOUNT OF MONEY THAT THEY GOT FROM THEIR GRANT AWARD AS AN ATTEMPT TO USE THE MONEY TO, UM, TO SUPPORT THE PROGRAM.

BUT IN THE CASE, IF THE MONEY DOESN'T GET SPENT, IT'S UNEARNED REVENUE AND THEN WE HAVE AN OPPORTUNITY TO APPLY FOR A CARRYOVER REQUEST, BUT THEN IT'S VERY LIMITED THEN IT'S ONE TIME FUNDS.

AND I KNOW WE HAD THAT, UM, PRESENTATION LAST WEEK.

SO IT REALLY IS REIMBURSEMENT BASED.

IF WE DON'T, IT'S STRICTLY BUDGET AT THIS POINT.

IF WE DON'T USE IT OR INCUR A COST, IT DOESN'T BECOME REVENUE UNLESS WE SEEK REIMBURSEMENT.

IF I'M UNDERSTANDING CORRECTLY, THE DIFFERENCE, AND I KNOW THE ADOPTED BUDGET NUMBER IS NOT ON HERE, BUT THE, THE REASON THAT THERE'S SUCH A INCREASE FROM THE ADOPTED BUDGET TO THE FIRST AND THEN SECOND INTERIM IS BECAUSE THOSE DOLLARS ARE REIMBURSEMENT BASED AND COULD NOT BE ALLOCATED IN OTHER AREAS, UH, IT'S A COMBINATION OF THEM.

IF THEY HAVE SAVINGS IN ONE EXPENDITURE CATEGORY LIKE SALARIES OR BENEFITS, THEY'LL MOVE THEM TO A DIFFERENT CATEGORY WHERE THERE MAY BE AN AREA OF NEED FOR THE PROGRAM TO TRY TO SPEND THE MONEY TO SUPPORT THE PROGRAM.

SO THEN WE CAN GET REIMBURSEMENT FOR THEM.

OTHER CASES, THAT'S THE BULK OF THE FLUCTUATIONS WE SAW FOR SECOND INTERIM.

OTHER CASES IS SOME OF THE ONE-TIME GRANTS THAT WE DID GET WE'RE ALSO BUDGETING FOR THOSE NEW GRANTS.

AT THAT POINT IN TIME, IT WOULD BE HELPFUL TO GET MORE OF A BREAKDOWN ON THAT CATEGORY, SPECIFICALLY WHAT THE GRANTS WERE AND HOW MUCH, UM, WAS RESTRICTED IN TERMS OF BEING REIMBURSEMENT BASED.

JUST SO YOU KNOW, MORE IN DEPTH ON THAT.

SO I DON'T SEE, I DON'T KNOW WHERE THIS FITS IN WITH THE SLIDE, BUT MAYBE IN THE OTHER SECTION, BUT WHEN THE S-E-C-O-E MAINTAINS A RESERVE OF 4%, 2% MANDATED BY THE STATE AND THEN THE OTHER 2% MANDATED BY THE BOARD, UM, WHAT WOULD IT LOOK LIKE FOR

[01:35:01]

THE BOARD TO, YOU KNOW, OPEN UP TO CREATE FLEXIBILITY FOR THAT 2% THAT WE DETERMINE FOR THAT RESERVE? HOW WOULD THAT IMPACT, UM, OPERATIONS FOR YOU GUYS? OR IS THAT A FISCALLY CREATE A DECISION AT ALL? NO, I WOULD NOT RECOMMEND IT.

I THINK OUR RESERVES LOW.

IT WOULDN'T, THE RESERVE WE HAVE NOW WOULDN'T EVEN COVER A MONTH OF PAYROLL.

SO, UH, THERE IS AN INCREASE, ESPECIALLY , I CAN SPEAK TO THIS AT THE STATE LEVEL ABOUT WITH THE BUDGETARY CONCERNS COMING IN SOME OF THE, THE FUNDING AND THE FUNDING SHORTFALLS, A LOT OF DISTRICTS IN NEED TO HAVE THESE RESERVES TO, UM, HAVE FUNDING FOR THE RAINY DAY.

AND IF THE PROP, IF THE RAINY DAY FUND GOES AWAY AND THE STATE HAS TO START CUTTING OUR BUDGETS, THAT'S THE ONLY MECHANISM THEY'LL HAVE TO SUPPORT.

OR THERE WILL HAVE TO BE MASSIVE REDUCTIONS IN EXPENSES ACROSS ALL LEAS.

SO I THINK, I THINK CUTTING IT WOULD NOT BE A GOOD DECISION FISCALLY.

ONE OTHER COMMENT ABOUT THIS CURRENT SLIDE RELATED TO THE SERVICES AND OPERATING EXPENSES WOULD ALSO BE HELPFUL TO GET A BREAKDOWN OF THAT, UM, THAT INCREASE AND SPECIFICALLY TRYING TO BETTER UNDERSTAND WHAT WAS DONE DIFFERENTLY WITH THE INSURANCES.

I KNOW IT HAD TO DO WITH THE, THE BILLING PERIODS OR THE WAY THAT IT, UH, IT ROLLED OVER.

BUT JUST HELPFUL TO KNOW, YOU KNOW, HOW THINGS WERE DONE IN THE PAST AND WHY IT WAS SO SIGNIFICANTLY, UH, DIFFERENT THIS TIME AROUND.

WE GET ABOUT 4.9 MILLION FROM OUR LOCAL CONTROL FUNDING FORMULA, WHICH IS WHAT WE'RE ESTIMATING FOR 24 25 WITH A CONTRIBUTION OF 2 MILLION.

SO THIS SLIDE IS THE, UM, OSI FUN EXPENDITURE FOR THE HEAD START PROGRAM IS THE COMPARISON BETWEEN AN ADOPTED BUDGET FIRST INTERIM AND SECOND INTERIM.

UH, AGAIN, AS, UH, DR.

TOSIN EXPLAINED EARLIER, LIKE WHEN WE HAVE SAVINGS FROM POSITIONS AND THEN THE PROGRAM REVIEW THE BUDGET AND THEY REALITE IT, UH, REALIZED THE BUDGET AND PUT IT IN THE OTHER CATEGORIES, FOR EXAMPLE, LIKE BOOKS AND SUPPLIES OR, UM, SERVICES THAT WHY YOU SEE AN INCREASES.

AND OUR, UH, THE REASON THE PROGRAM DOING THAT TO GIVE THEM THE FLEXIBILITY WHEN THEY WANT TO INCREASE THE, LET'S SAY A PURCHASE ORDER FOR SERVICES AND THEN THEY HAVE THE FUNDS SET ASIDE SO THEY CAN USE THAT FUNDING THAT THEY UTILIZE FOR THOSE, UM, SERVICES.

AND, UM, FOR THE SERVICES IN THE HEAD START PROGRAM.

THE EXAMPLE INCLUDE LIKE LET'S SAY THEY HAVE INTER-OFFICE SERVICE EQUIPMENT WITH OTHER DEPARTMENT AND IF THEY HAVE AN INCREASE IN THE, THE SERVICES THEY NEED TO REALIGN THE BUDGET AS WELL, OR THE PARTNER CONTRACTS FOR CHILDCARE SERVICES OR THE CONSULTANT PROFESSIONAL FEES FOR MENTAL HEALTH SERVICES OR FOR SITE LANGUAGE INTERPRET, INTERPRET INTERPRETATION SERVICES, AS WELL AS THE SUB SOFTWARE SUBSCRIPTIONS THAT THEY PAY FOR, UM, PROFESSIONAL DEVELOPMENT FOR THE HEADS DRUG PROGRAM.

AND THIS IS OUR MULTI-YEAR PROJECTION ESTIMATES.

AS OF THE SECOND INTERIM, UM, AS YOU SEE IT HERE, UM, WE, WE ARE CLOSELY MONITORING OUR BUDGET DUE TO THE ONGOING FISCAL CHALLENGES THAT STEPHANIE MENTIONED EARLIER AS WHAT UNCERTAIN FEDERAL FUNDINGS UNDER THE CURRENT ADMINISTRATION.

UM, OUR UNDERSIDE FUND BALANCE IS PROJECTED TO BE VERY LOW AT THE SECOND INTERIM REPORTING PERIOD WHILE OUR OPERATING COSTS, UM, CONTINUE TO RISE EACH YEAR.

AND THEN, UH, WE REQUIRE TO MAINTAIN A RESERVE AS WELL.

WE REQUIRED TO MAINTAIN A RESERVE OF 4% OF OUR TOTAL EXPENDITURES FOR ECONOMIC UNCERTAINTY AS WELL AS TO SET ASIDE FUNDS FOR OTHER ASSIGNED AND DESIGNATED PURPOSE.

UM, SO THESE REQUIREMENTS COMBINED WITH THE INCREASE IN COSTS MAKE IT NECESSARY FOR US TO EVALUATE ALL THE AREAS OF OUR BUDGET AND CONSIDER REDUCTIONS TO ENSURE THAT WE CAN CONTINUE TO MEET OUR FINANCIAL OBLIGATIONS AND MAINTAIN A HEALTHY FISCAL OUTLOOK IN THE CURRENT, IN THE NEXT TWO OUT YEARS.

SO NEXT I'M GONNA TURN OVER TO STEPHANIE.

YOU, UM, SO I'M GONNA JUST GO OVER SOME OF OUR PROGRAMS. SO WE HAVE OUR ENROLLMENT, WHICH LEILANI HAD TOUCHED ON, WHICH IS, UM, THE ENROLLMENT NUMBER IS VERY DIFFERENT THAN OUR AVERAGE DAILY ATTENDANCE.

THAT'S WHAT, WHAT OUR PROGRAMS ARE FUNDED ON.

SO I WANTED TO GIVE SOME TRENDS OVER SOME OF OUR, UM, PROGRAMS. SO FOR OUR COURT SCHOOL, THIS IS THE ENROLLMENT AND AVERAGE DAILY ATTENDANCE TRENDS FROM 1920 ALL THE WAY TO WHAT WE'RE PROJECTING FOR 24 25, WHICH IS RELATIVELY LOW.

IT'S ABOUT 50 FOR 25, 26.

WE'RE LOOKING AT ABOUT 47, WHICH IS, WHICH IS GOOD TO YOUR POINT.

UH, WE, WE DON'T WANNA KEEP STUDENTS INCARCERATED.

UM, WITH THAT THOUGH, THIS IS ONE OF OUR FEW MANDATED PROGRAMS. THE CONTRIBUTION THAT WE DO HAVE TO PROVIDE IS SOMETHING THAT WE ARE REALLY LIMITED ON.

WE HAVE TO HAVE THESE SERVICES IN PLACE AT ALL TIMES.

SO WE HAVE SEEN FLUCTUATIONS, UM, FROM OUR LOCAL CONTROL FUNDING FORMULA AND THE USE OF GENERAL FUND HERE.

UM, SO THIS ONE, OUR ESTIMATE IS ABOUT 2 MILLION.

[01:40:01]

UM, ON TOP OF THAT FOR 25 26 WE'RE PROJECTING 4.86 AND IT WENT DOWN A LITTLE BIT 'CAUSE OUR ADAS PROJECTED TO DROP TO ABOUT 47.

AND THEN OUR GENERAL FUND CONTRIBUTION'S ABOUT 2 MILLION.

SO THIS IS THE MANDATED FUNDING THAT WE DO GET FROM THE STATE IS TO SUPPORT THIS PROGRAM.

AND THAT'S THE, THESE ARE THE, THE PROJECTIONS THAT WE HAVE FOR 25 26.

I'D LIKE TO HIGHLIGHT TOO THAT WHEN WE LOOK AT OUR MULTI-YEAR PROJECTIONS, THAT WILL BE A CUMULATIVE, IF IT'S 2 MILLION, 2 MILLION, 2 MILLION.

SO WHEN WE'RE LOOKING AT THIS, THIS IS THE COST FOR 25, 26.

BUT WHEN WE DO OUR MULTI-YEAR PROJECTIONS, WE ALSO WILL HAVE OUT OUTLYING COSTS FOR, FOR THE NEXT TWO YEARS, WHICH WILL HAVE AN IMPACT ON OUR FUND BALANCE.

AND SO AS WE'RE LOOKING AT THE, THE BARS, THE 4.86 AND THE GENERAL FUND CONTRIBUTION, IF I ADD THEM TOGETHER, IS THAT THE TOTAL OPERATIONAL COST OF AROUND 6 MILLION? YES.

THOSE ARE OUR PRODUCTIONS.

AND THEN OUR AVERAGE DAILY, UH, OUR ED COMMUNITY SCHOOLS, WE HAVE OUR ENROLLMENT VERSUS OUR AADA, SO IT TICKED UP IN 23, 24.

AND THEN FOR 24 25, THE A DA HAS DROPPED.

AND THEN WE ARE PROJECTING A SLIGHT DECREASE IN 25, 26.

THIS PROGRAM, WE DID REEVALUATE THIS FUNDING MODEL FOR 2324 AND IT HAS BEEN PRETTY SUCCESSFUL.

WE GET A SMALL PORTION OF LOCAL CONTROL FUNDING FORMULA, BUT THEN WE ALSO GET FEE FOR SERVICE FROM DISTRICTS.

DISTRICTS CAN ENROLL THEIR STUDENTS IN OUR PROGRAMS. AND SO BASED ON OUR PROJECTIONS FOR 24 25, WE ARE NOT ANTICIPATING GENERAL FUND CONTRIBUTION FOR 24, 25 OR 25, 26.

VICE PRESIDENT SEAN, AND THEN TRUSTEE PACHECO.

MINE.

JUST A QUICK QUESTION BACK ON SLIDE 52, THE UM, WHY ARE WE, UH, PROJECTING A LOWER A DA FOR NEXT YEAR? IT'S BASED ON OUR PROJECTIONS THIS YEAR.

IT'S, WHAT WE DO IS WE LOOK AT OUR P TWO ONE, P TWO, UM, AND THEN OUR P ANNUAL.

AND SO IT'S BASED ON OUR PROJECTIONS THAT WE'RE, UM, WHERE OUR TRENDS ARE FOR OUR ACTUAL AVERAGE DAILY ATTENDANCE THAT WE'RE BEING FUNDED AT.

SO IT KEEPS GOING.

IT'S JUST TRENDING LOWER.

SO WE'RE JUST GONNA ASSUME IT KEEPS GOING LOWER.

THEY'RE SEPARATE FUNDING.

AND THEN, UM, OKAY, THAT WAS ALL I HAD FOR THAT ONE.

YOU SEE PACHECO, SIMPLE QUESTION DEFINITION IS ALTERNATIVE EDUCATION COMMUNITY SCHOOLS AND COURT SCHOOLS THE SAME THING? THEY'RE SEPARATE PROGRAMS? CORRECT.

SO THE COURT'S GOAL IS WHERE YOU HAVE THE STUDENTS THAT ARE IN ACTUAL JUVENILE FACILITIES, THE ED COMMUNITY SCHOOLS, WHERE WE HAVE STUDENTS THAT GO, YOU KNOW, TO CLASSES DAILY.

BUT THEN WE ALSO HAVE DISTRICTS THAT REFER STUDENTS INTO THOSE PROGRAMS. SEPARATE BUCKETS.

UH, WHEN WE GO TO OUR OPPORTUNITY YOUTH ACADEMY JUST TRENDING FROM 1920, WE CAN SEE THE ENROLLMENT VERSUS THE A DA.

UH, WE ARE PROJECTING A SMALL INCREASE IN A DA FOR THE 24, 25 AND 25, 26 YEAR.

UM, BUT BASED ON THIS, WHEN WE INITIALLY STARTED OPPORTUNITY YOUTH ACADEMY, I WANNA SAY OUR GENERAL FUND CONTRIBUTION WAS ABOUT 600, 650,000.

UM, AS COSTS HAVE INCREASED YEAR AFTER YEAR, UH, FOR 24 25 WE'RE, WE ARE PROJECTING 5.9 MILLION IN LOCAL CONTROL FUNDING FORMULA.

UM, BUT 1.19 MILLION IN A GENERAL FUND CONTRIBUTION.

AND THEN FOR 25 26, WE ARE SEEING A SLIGHT DIP IN OUR PROJECTIONS FOR AVERAGE DAILY ATTENDANCE.

AND SO OUR PROJECTION IS 839,000 FOR, UM, THE OYA PROGRAM.

AND THIS IS AN ELECTIVE PROGRAM.

SO THERE'S A QUESTION ASKED ABOUT WHAT ADDITIONAL PROGRAMS ARE WE FUNDING WITH OUR GENERAL FUND AND THIS IS ONE OF THE PROGRAMS THAT WE ARE.

AND THEN WALDEN WEST, UH, WE HAVE, UH, OH, SORRY, CAN YOU JUST REMIND ME AGAIN? 'CAUSE UH, HAWAII IS A DEPENDENT CHARTER.

AND SO WHERE ARE WE IN THE CYCLE WITH, UH, EVALUATING OOYA? I BELIEVE THEIR PETITION EXPIRES IN THE OR IS UP FOR RENEWAL IN THE 26 27 SCHOOL YEAR.

OUR REVENUE, WE'RE LOOKING AT A PROJECTION OF 4.28 MILLION.

UM, SO FOR WALDEN WEST WE HAVE, UH, THREE DIFFERENT AREAS OF REVENUE.

WE HAVE THE SCIENCE CAMP REVENUE, WE HAVE OUR SUMMER, AND THEN WE HAVE EVENTS.

AND SO THIS JUST SHOWS OUR ESTIMATES.

THE BULK OF IT IS SCIENCE, CAMP REVENUE, AND THEN WE HAVE OUR SUMMER CAMP AND THEN OUR EVENT REVENUE.

UM, SO THOSE ARE OUR PROJECTIONS FOR 24, 25 AND THEN 25, 26.

UH, THIS PROGRAM, UH, WHEN WE DID GET, UH, OUR COVID FUNDING HERE, WE WERE ABLE TO MAINTAIN THE PROGRAM.

A LOT OF COES WERE UNABLE TO MAINTAIN THEIR PROGRAMS, BUT WE WERE ABLE TO REASSIGN STAFF AND USE COVID DOLLARS, UM, TO KEEP THE STAFF FOR THAT PROGRAM.

UM, AND SO ONCE WE CAME BACK TO IN PERSON, UM, WE CAN SEE THAT OUR REVENUES HAVE DROPPED.

AND SO WE ARE LOOKING AT THAT.

WE HAVE LOOKED AT OUR FUNDING MODEL.

UM, BUT EVEN WITH THAT, OUR GENERAL FUND CONTRIBUTION CONTINUES TO RISE.

SO FOR 24 25, OUR PROJECTIONS OF REVENUE ARE 3.5 MILLION AND OUR GENERAL FUND CONTRIBUTION IS 1.86 MILLION.

AND THEN FOR 25 26,

[01:45:01]

BUT KEEP IN MIND THIS IS FEE FOR SERVICE.

SO IT'S DEPENDENT UPON THE AMOUNT OF STUDENTS THAT ARE SENT TO OUR CAMP.

AND THEN OUR, UH, GENERAL FUND CONTRIBUTION'S 1.275 MILLION.

SO THIS IS ANOTHER PROGRAM THAT'S AN ELECTIVE PROGRAM THAT WE'RE USING OUR MANDATED BASE FUNDING TO PROVIDE, UH, FINANCIAL SUPPORT FOR TRUSTEE SPICER AND THEN VICE PRESIDENT SEAN, UM, ON THIS ONE, YOU, IT IS A FEE FOR SERVICE.

ARE WE WOR WORKING ON CHANGING THE CONTRACTS SUCH THAT THE FEES FOR THE SERVICE ARE GOING UP? YES.

SO LAST YEAR WE DID, UH, WE DID AN INCREASE A THREE YEAR INCREASE IN OUR ED COMMUNITY SCHOOL AMOUNTS.

WE CHARGE DISTRICT AND WE ALSO DID IT FOR WALDEN WEST.

SO WE DID DO A SLIGHT INCREASE FOR WALDEN WEST.

WE ALSO HAVE TO BE MINDFUL, AS DR.

TOSSIN SAID, WITH DISTRICT BUDGETS BEING REALLY TIGHT.

UM, WE DID SOME COMPARISONS.

WE'RE IN A REALLY DELICATE SITUATION THAT WE DON'T WANNA PRICE OURSELF OUT OF THE MARKET.

SO WE DID DO A SLIGHT INCREASE IN OUR, OUR FEES AND WE HAD SOME DISTRICTS THAT DID NOT WANNA PARTICIPATE.

WE HAVE SOME THAT DID WANNA SEND THEIR STUDENTS.

UM, BUT EVEN WITH THAT SLIGHT INCREASE, UM, WE'RE STILL LOOKING AT A CONTRIBUTION OF 1.27 MILLION.

AND IS THERE A WAY ALONG THOSE LINES MM-HMM .

UM, THAT THE INCREASE COULD BE EQUITABLE BASED ON THE ABILITY OF THE SCHOOL DISTRICT TO, TO PAY IT.

'CAUSE THE PROGRAM IS WELL USED, I KNOW IN, IN THE COUNTY.

UH, ANYWAY, I JUST, THERE'S CREATIVE WAYS FOR IT TO BE INCREASED.

AND I THINK THE CHALLENGE IN THIS, THIS STRUCTURE IS UM, IF I REDUCE ONE SLICE OF THE PIE, I HAVE TO EXPAND ANOTHER SLICE SOMEWHERE ELSE TO MAKE IT EQUITABLE, WHETHER THAT'S A GENERAL FUND CONTRIBUTION OR ANOTHER DISTRICT.

UM, AND I'M STILL UNDER LEARNING THE REGION, BUT MY UNDERSTANDING IS THERE ARE OTHER OUTDOOR CAMPS AND NEIGHBORING COUNTIES THAT DISTRICTS MAY ELECT TO GO TO.

AND SO WHEN I LOOK AT THE PRICE COMPARISON AND WHAT'S IN MY BEST INTEREST AS A, AS A, AS A DISTRICT, I MEAN, DISTRICTS MAY MAKE DIFFERENT OPTIONS.

AND SO AS PRESIDENT SEAN, SO WHEN WE TALK ABOUT WALDEN, WALDEN WEST IS SPECIFICALLY THE SCIENCE CAMP PROGRAM? YES.

SO, UM, IS, DOES THAT, UM, DO OTHER SCHOOL DISTRICTS OUTSIDE OF SANTA CLARA COUNTY PARTICIPATE IN SCIENCE CAMP AT WALDEN WEST? OR IS, OR ARE THEY ALL SANTA CLARA COUNTY SCHOOLS? I DON'T KNOW.

I'D HAVE TO LOOK INTO THAT MORE.

AND THEN DO YOU, DO YOU KIND OF, THE REASON I ASK IS THEN ARE THERE CERTAIN WEEKS WHEN THERE IS NO CAMP RUNNING? 'CAUSE THERE'S NO DISTRICT THERE, AND THEN IS THERE WAYS THAT WE CAN FILL IN THOSE GAPS? UM, 'CAUSE A SIXTH GRADE TEACHER, I'VE GONE TO SCIENCE CAMP MANY TIMES AND THERE ARE A LOT IN THE SANTA CRUZ COUNTY AT THE SANTA CRUZ AREA.

IT'S JUST A GREAT PLACE TO, TO BE ABLE TO DO THAT.

THE THE NATURE IS IS RIGHT THERE, BUT I'M JUST WONDERING, UM, YOU KNOW, HOW, WHAT, WHAT DOES IT LOOK LIKE TO FILL UP THOSE TIMES? UM, AND I THINK, I THINK SCIENCE CAMP IS A GREAT PROGRAM.

I, I LOVE IT.

I THINK IT'S A GREAT OPPORTUNITY FOR THE, FOR THE STUDENTS.

UM, BUT ALSO MAKING SURE THAT ALL STUDENTS ARE ABLE TO ATTEND.

UM, BECAUSE IT IS USUALLY A HEAVY COST FOR STUDENTS OR FOR DISTRICTS IF THEY PAY FOR IT.

SO JUST SEEING IF WE'RE ABLE TO EXPAND EFFORTS TO, UH, INCREASE ATTENDANCE THERE, I DON'T KNOW IF ATTENDANCE IS THE RIGHT WORD, BUT INCREASE OUR PROGRAM ATTENDANCE THERE.

UM, AND THEN I'M ALSO WONDERING IF, IF THERE'S ALSO AN INCREASE IN REVENUE, DOES THAT MEAN THAT THE PROGRAM IS BEING ATTENDED MORE? 'CAUSE THIS IS AT THE HIGHEST, UH, REVENUE, UM, THAT WE'VE SEEN IN, IN THE, YOU KNOW, SINCE 2019.

SO IS, IS THIS, IS THIS 4.2 SIMILAR TO WHAT IT WAS LIKE PRE COVID? BECAUSE WE ONLY HAVE 2019 20, 20 20.

SO LIKE IN 2018 17, WAS IT USUALLY THAT HIGH OR WE JUST THINKING IT'S HIGHER 'CAUSE OF OUR INCREASED FEES? I THINK IT'S HIGHER BECAUSE OF INCREASED FEES, BUT ALSO COST.

THE COST HAVE INCREASED SIGNIFICANTLY.

RIGHT.

SO I WILL SAY THAT PRIOR TO COVID, WE HAD ANOTHER SITE THAT WE WERE LEASING.

AND I WANNA SAY THE PROGRAM WAS NEARING, I THINK THE CONTRIBUTION WAS LIKE 600,000.

IT WAS NOT AS HIGH.

AND THEN WHEN COVID HIT AND THEN IT TOOK TIME TO RESTABILIZE.

UM, SO I THINK THAT'S WHERE WE ARE RIGHT NOW.

I THINK FOR US THE, THE CHALLENGE WE'RE TRYING TO GET CREATIVE AND LOOK AT IS THE FUNDING MODEL AND STRUCTURE, BUT THEN THE INCREASED COST IS HOW DO WE NAVIGATE THAT TOO? RIGHT, RIGHT.

BUT WE ARE ACTIVELY WORKING WITH THE PROGRAM AND DR.

TOSIN TO LOOK AT OTHER OPTIONS FOR THE FEE STRUCTURE.

IT'S LIKE A SEESAW, LIKE I, YOU KNOW.

FOOD SUPPLIES, ET CETERA, FOR THE CAMP, UM, WE MAY ONLY BE INCREASING OUR, WE MIGHT BE INCREASING OUR REVENUE, BUT NOT ENOUGH TO OUTPACE THE COST TO EXPAND, UH, THE OFFERINGS.

BUT, UM, YEAH, THANK YOU FOR THAT UPDATE ABOUT THE, ABOUT WALDEN WEST.

WELCOME.

I JUST WANTED TO EMPHASIZE THAT LAST COMMENT IN TERMS OF TRYING TO FILING THE BALANCE BECAUSE INCREASING ATTENDANCE OR USE, IF I ASSUME WE'RE CURRENTLY STAFFED AT THE APPROPRIATE LEVEL FOR THE CURRENT USE AND WE HAVE TO INCREASE STAFFING COSTS AND WE KNOW THE COST OF GOODS AND SERVICES ARE GOING UP, UM,

[01:50:01]

TRUSTEE ROCHA, THANK YOU.

AND FORGIVE ME IF THE QUESTION WAS ASKED, BUT LOOKING AT IT, UM, FIRST THING THAT I WAS TRYING TO UNDERSTAND IS THE REVENUE PROJECTION GOING UP FROM 20 24, 25 TO 25, 26.

AND I BELIEVE YOU TOUCHED ON IT, BUT I JUST WANNA BE CLEAR, HOW WAS THAT, HOW ARE WE PROJECTING THAT INCREASE? 'CAUSE GENERALLY EVERYTHING'S GOING THE OTHER WAY AND ALSO OUR GENERAL FUND SUBSIDY IS GOING THE OTHER WAY.

BUT YET ON THIS ONE, THAT ONE YEAR THAT WE'RE PROJECTING, WHICH ISN'T OBVIOUSLY HAPPENING, WE'RE BEING VERY OPTIMISTIC.

SO CAN YOU REMIND ME IF YOU DID TOUCH ON IT, WHY IT IS SET UP THAT WAY? YEAH, SO FOR THE 24, 25, 25, 26, 26, 27 YEAR, WE HAVE A TIERED INCREASE IN OUR PRICES.

SO THE INCREASE AS A RESULT OF THE ESTIMATED AND UH, PARTICIPATION FROM SCHOOL DISTRICT'S, NUMBER OF STUDENTS AND THE INCREASED RATE FOR THE 25 26 YEAR.

AND WE'RE ESTIMATING THAT MORE STUDENTS ARE GONNA PARTICIPATE EACH YEAR.

THAT'S BASED ON THE INFORMATION THAT OUR UM, PROGRAM HAS RECEIVED FROM THE LOCAL DISTRICTS.

THERE'S A CERTAIN TIMELINE TO GET ENROLLED FOR THE PROGRAM FOR THE NEXT YEAR.

SO AS DISTRICTS ARE BUILDING THEIR BUDGETS AND THEY'RE, UM, THEY'RE NOTING THEIR PARTICIPATION, THAT'S WHAT THOSE ESTIMATES ARE BUILT ON.

ON DISTRICTS THAT HAVE SAID THAT THEY'RE GONNA PARTICIPATE, THERE'S AGREEMENTS THEY HAVE TO FILL OUT FOR THE 25, 26 YEAR.

SO THAT'S WHAT THAT PROJECTIONS BASED ON.

OKAY, GREAT.

YEAH, YOU'RE WELCOME.

AND THEN JUST WANTED TO HIGHLIGHT OUR BUDGET DEVELOPMENT TIMELINE.

SO WE'RE ALREADY IN MAY.

SO WE ARE CURRENTLY IN THE PART OF OUR BUDGET DEVELOPMENT WHERE WE'RE FINALIZING ALL THE PROGRAM BUDGETS.

WE JUST GOT THE GOVERNOR'S MAY REVISE.

SO AS WE'RE LOOKING, WE, WE ARE MAKING ADJUSTMENTS TO OUR BUDGET IN THE SENSE THAT THE COST OF LIVING ADJUSTMENT DID DECREASE.

SO WE'RE WORKING ON THAT NOW.

AND INSTEAD OF DOING, UM, OUR BUDGET STUDY COMMITTEE, WE HAVE THE BUDGET STUDY SESSION THERE.

THE NEXT PHASE IN THE PROCESS WILL BE OUR JUNE 11TH MEETING WHERE WE'LL DO OUR PUBLIC HEARING FOR OUR LCAP AND OUR BUDGET WITH THE ADOPTION, UM, AT THE FOLLOWING MEETING.

AND THEN WE'RE REQUIRED TO SEND THAT TO THE CALIFORNIA DEPARTMENT OF EDUCATION NOW.

SO WE'RE GETTING NEAR THE END OF OUR BUDGET DEVELOPMENT TIMELINE FOR 25 26.

AND THEN THESE WERE THE BUDGET AND MULTI-YEAR PROJECTION EXPENDITURE ASSUMPTIONS SO THESE WERE UPDATED, UM, BASED ON THE GOVERNOR'S MAY REVISE, THESE MAY BE ADJUSTED AGAIN BASED ON WHAT THE JUNE ENACTED BUDGET LOOKS LIKE.

IF THERE'S ANY CHANGES OF COST OF LIVING ADJUSTMENTS, THEY WILL BE UPDATED AT THAT TIME.

AND THEN THIS IS, UH, LAUREN, I THINK THAT'S YOUR SLIDE.

SORRY.

THANK YOU, STEPHANIE.

SO THIS SLIDE SHOWS THE COMPARATION IN THE SALARY INCREASES VERSUS THE STATUTORY COLA FROM FISCAL YEAR 20, UM, 1617 THROUGH THE CURRENT FISCAL YEAR 24 25 OVER THE PAST NIGHT YEAR.

IF YOU SEE OVER THERE, THE SALARY INCREASES HAVE FLUCTUATED, BUT GENERALLY ALIVE WITH THE COLA OR EV OR EVEN EXCEED THE COLA TO HELP, UM, US RETAIN STAFF, ADMIT INFLATION AND, UH, RISING LIVING COSTS.

AS WELL AS THAT DEMONSTRATE OUR OFFICE CONTINUED COMMITMENT TO COMPETITIVE COMPENSATION.

AND THIS IS THE, UM, ANOTHER WAY THAT WE SHOW THE CUMULATIVE SALARY INCREASES OVER THE PAST NINE YEARS, UH, HAVE EXCEEDED THE CO TO SUPPORT, UM, STAFF RETENTION AS WELL AS RECOGNIZ THAT THEIR EXPERIENCE, LONGEVITY AND THE INCREASES IN STEP AND COLUMN TO ADDED A STEP IN COLUMN TO THE SALARY SCHEDULE, AS WELL AS THE INCREASES IN THE STIPENDS.

AND THIS IS THE COMPARISON BETWEEN OUR SALARY INCREASES AND THE CALIFORNIA CONSUMER PRICE INDEX.

UM, OVER THE PAST NINE YEARS, SINCE 20 16 17, THE MOST OF THE TIME OUR SALARY INCREASES EXCEED THE CALIFORNIA CONSUMER PRICE INDEX.

THAT REFLECTS OUR OFFICE AT FIRST TO, UM, RETAIN STAFF A MID PRICE IN THE COST.

AND THIS IS, UM, ANOTHER WAY TO SHOW THE ACCUMULATIVE SALARY INCREASES VERSUS THE CALIFORNIA CONSUMER PRICE INDEX.

UM, I JUST WANT TO EMPHASIZE HERE, OUR SALARY INCREASES IN, IN EACH STEP IN COTTON THAT REFLECT APPROXIMATELY 5% IN SALARY INCREASES.

UH, WE, UH, OUR SALARY INCREASES HELP US TO REMAIN THE COMPETITIVE IN THE CHALLENGING, UH, LABOR MARKET IN THE BAY AREA.

NEXT IS STEPHANIE.

UH, SO THIS SLIDE I WANNA JUST BRIEFLY HIGHLIGHT.

I KNOW YOU'VE SEEN THIS BEFORE, BUT THIS IS OUR SECOND INTERIM, UH, RETURN OF LOCAL PROPERTY TAX ESTIMATE.

IT JUST GOES THROUGH THE CYCLE OF WHEN THE PROPERTY TAX REVENUE

[01:55:01]

COMES IN.

WE HAVE TO SPLIT IT.

62% OF THAT GOES FOR OUR ASSEMBLY BILL, 6 0 2 SPECIAL ED FUNDING.

SO THAT THAT FUNDING, WHICH IS 147.8 MILLION, GOES TO OUR LOCAL, UM, SANTA CLARA SPECIAL EDUCATION LOCAL PLAN AREAS.

OUR SELPAS, THAT'S THE FUNDING THAT OUR SCHOOL DISTRICTS UTILIZE TO PARTICIPATE IN OUR SPECIAL ED PROGRAM.

AND THAT'S THE FUNDING THAT'S USED TO PAY FOR OUR SERVICES.

UM, THE OTHER 37.8558%, UH, 37 OF THAT IS OUR BASE FUNDING THAT WE KEEP TALKING ABOUT.

AND THE OTHER 52, THAT'S A PROJECTION, IT COULD GO HIGHER BY THE TIME WE, WE END THIS FISCAL YEAR IS THE AMOUNT THAT WE ARE PROJECTED TO SEND BACK TO THE STATE FOR THE 24 25 YEAR.

AND THEN WE ALSO WANTED TO SHOW FOR 25, 26.

SO LEILANI WENT OVER OUR BASE FUNDING AND SO WE DID ADD OUR ADDITIONAL ALL-ED GRANTS, WHICH IS THE AMOUNT THAT WE GET TO RUN OUR ALL-ED PROGRAM AND OUR TRANSPORTATION BLOCK GRANT MONEY.

THIS IS PART OF OUR CALCULATION OF OUR BASE FUNDING.

SO WE WANTED TO SHOW HOW IT BREAKS OUT AND THEN ALSO HOW THE COST OF LIVING ADJUSTMENT IS APPLIED.

SO UNLIKE SCHOOL DISTRICTS, THEY GET IT ON THEIR OVERALL FUNDING, BUT WE ONLY GET IT ON THE AMOUNT THAT WE RECEIVE FROM THE STATE.

SO I ALSO WANNA HIGHLIGHT THE RETURN OF LOCAL PROPERTY TAXES THERE.

IT'S 57 MILLION IS WHAT WE'RE PROJECTING.

WHEN OUR COUNTY OFFICE TRANSITIONED TO, UM, BE ABLE TO RECEIVE A COST OF LIVING ADJUSTMENT AT 2324, IT WAS ADJUSTED IN THE SENSE THAT THEY WOULD CARVE OUT SOME OF THAT RETURN ON LOCAL PROPERTY TAX MONEY AND REALLOCATE IT BACK TO OUR OFFICE.

UM, BUT THEN THE CHALLENGE THAT COMES WITH THAT IS OUR RE REDUCTION IN A DA, BUT WANTED JUST TO SHOW THE SLIGHT INCREASE IN OUR BASE FUNDING THAT WE DO GET FROM THAT.

IF THE COLA DOES STAY AT 2.3%, SO IT'S APPROXIMATELY 690,000 FOR OUR COUNTY OPERATIONS GRANTS, 138,000 FOR OUR ED GRANT, $24,000 FOR OUR TRANSPORTATION TARGET INSTRUCTIONAL GRANTS.

SO JUST WANNA SHOW IT IN A DIFFERENT GRAPHIC.

AND THEN THIS WAS OUR, OUR MULTI-YEAR PROJECTIONS.

SO THIS JUST SHOWS OUR BASE FUNDING FOR THE 25, 26, 26, 27, 27 YEAR.

AND IT AGAIN, JUST SHOWS THE COLA AND THE AMOUNT THAT IT, UH, THAT WE'RE PROJECTING IF THE COLA STAY AS THEY ARE IN THE MAY REVISE.

LAURIE HAD A QUESTION ABOUT THE 62% THAT'S, UM, GIVEN TO SCHOOL DISTRICTS.

UM, DO WE GET MOST OF IT BACK, UH, AS FEE FOR SERVICE? OR HOW DOES, HOW DOES THAT WORK? I WOULD SAY, WELL, SOME SCHOOL DISTRICTS, THEY DO PROVIDE SERVICES TO THEIR DISTRICT OF RESIDENT STUDENTS.

SO IT WOULD ONLY BE THE PORTION OF OF SCHOOL DISTRICTS THAT PARTICIPATE IN OUR SPECIAL EDUCATION PROGRAM.

RIGHT, OKAY.

BUT THEN EVEN WITH THE AMOUNT OF FUNDING THAT THE DISTRICTS DO RECEIVE, BECAUSE DECLINING ENROLLMENT DOES HAVE AN IMPACT ON THE SPECIAL EDUCATION FUNDING, A LOT OF DISTRICTS, THE AMOUNT OF FUNDING THEY GET THROUGH THE AB 6 0 2 FUNDING IS STILL NOT ENOUGH TO COVER THEIR SPECIAL EDUCATION COSTS.

SO A LOT OF THEM DO HAVE TO USE THEIR GENERAL FUND BUDGETS TO ALSO PAY FOR THOSE EXPENSES.

SO THANK YOU.

AND SO JUST WANTED TO HIGHLIGHT WHAT THAT WOULD LOOK LIKE IF THE COLAS DO STAY AT THE MAY REVISE LEVELS.

UM, AND THIS HERE WE JUST WANTED TO SHOW TOO, THIS IS BASED ON THOSE COLAS BEING IMPLEMENTED, BUT THEN ALSO OUR REDUCTION IN A DA, WHAT WE HAVE FOUND OVER THIS PAST YEAR, UM, AS, UM, LAUREN HAD SHARED AT, AT, AT OUR SECOND INTERIM, THE AMOUNT OF A DA THAT WE PROJECTED VERSUS THE AMOUNT OF A DA THAT WAS ACTUALLY REALIZED WAS LESS.

SO WE'RE PROJECTING A DECREASE FOR 25, 26 OF 188,000 OUT OF THAT 600 AND, UH, $80,000 AMOUNT.

BUT IF THE DECLINE IN ENROLLMENT CONTINUES TO DROP, IT WILL REDUCE THE AMOUNT OF COST OF LIVING ADJUSTMENT THAT WE DO RECEIVE ON OUR BASE FUNDING.

AND THEN LAUREN, TURN OVER TO YOU.

UM, DID HAVE A QUESTION, AND SORRY FOR GOING BACKWARDS, BUT IT KIND OF HIT ME AS I WAS LOOKING AT THE SALARY INCREASE SLIDES, THE DIFFERENCE BETWEEN CLASSIFIED AND UNCLASSIFIED MISSED.

OH.

ON THE, UM, THIS SLIDE, UH, THE 60, THE 61 62, JUST IN GENERAL, AS FAR AS THE COUNTY OFFICE OF EDUCATION, THESE INCREASES REFLECT BOTH CLASSIFIED AND UNCLASSIFIED.

YOU DON'T HAVE A BREAKOUT OF WHICH ONE IS WHAT PERCENTAGE OF THIS? I DO NOT HAVE THAT, BUT WE CAN LOOK INTO THAT.

THE, THE AMOUNT THAT PERTAINS TO THE PERCENTAGE.

SO EV THE CLASS CERTIFICATE AND CLASSIFIED GOT THE SAME SALARY INCREASES? YES.

THAT APPLIES TO BOTH GROUPS.

BUT ARE YOU ASKING ABOUT THE SPECIFIC DOLLAR AMOUNTS ALSO? JUST THE PERCENTAGE OF THE OVERALL BUDGET, I THINK.

AS WELL.

SO IT'S REALLY BOTH.

ALL THE ABOVE, I GUESS.

AND I GET IF THAT WOULD BE POSSIBLE TO HAVE THAT WHEN WE DO THE BUDGET ADOPTION.

JUST SO AS WE'RE LOOKING AT THE BUDGET, JUST AGAIN FOR MY UNDERSTANDING, IF YOU DON'T MIND, PLEASE.

YEAH, YEAH, WE CAN DEFINITELY LOOK AT THAT.

I ALSO WANNA HIGHLIGHT ON THE SLIDE, WE CAN PUT THE INFORMATION TOGETHER MORE, BUT WE DID PUT THAT IN THE, THE THREE YEARS, THIS SLIDE HERE, IT DOES SHOW

[02:00:01]

THESE ARE ACTUALS.

SO IT DOES SHOW THAT WITH THOSE RESPECTIVE INCREASES, THOSE ARE THE INCREASES YEAR TO YEAR.

SO FOR 24 25, WE CAN PROVIDE OUR YEAR TO DATE, BUT IT DOES SHOW THE CERTIFICATED VERSUS CLASSIFIED.

AND THAT REPRESENTS THOSE RESPECTIVE, UH, PART OF THAT IS THOSE INCREASES.

OH, SO THAT'S EMBEDDED IN THIS THEN, CORRECT.

SO YOU'VE GOT THE CLASSIFIED AND CERTIFICATED CORRECT.

AND THEN THE EMPLOYEE BENEFIT, WE ALSO DID SOME INCREASES IN OUR EMPLOYEE BENEFITS TO KEEP THE, UM, UH, FOUR PLANS FREE TO EMPLOYEES AND THEIR FAMILIES.

SO WHEN WE COVER THOSE COSTS OVER THE PAST THREE YEARS, THAT'S WHY YOU CAN SEE THE EMPLOYEE BENEFIT COLUMN HAS INCREASED SIGNIFICANTLY BECAUSE THOSE COSTS HAVE GONE UP ABOUT NINE TO 10% A YEAR.

AND IT WAS THE COVID CATCHUP THEY CALLED IT WHEN WE WORKED WITH OUR, OUR INSURANCE POOL BECAUSE ALL THE PROCEDURES OR THINGS THAT, UM, EMPLOYEES PUT OFF OR, OR PEOPLE IN GENERAL PUT OFF, THEY WERE DOING IT DURING THOSE TIME PERIODS.

SO YOU EXPLAINED, AND I'M SORRY 'CAUSE I'M USED TO THE WORLD THAT I'VE BEEN LIVING IN IS CLASSIFIED AND UNCLASSIFIED, AND THEN IN THE SCHOOL DISTRICT WORLD, WE'VE GOT THIS CERTIFICATED, BUT I SEE THE CLASSIFIED, SO UNCLASSIFIED BEING EXECUTIVE STAFF, IS THAT IN ONE OF THESE, ON THIS SLIDE THAT YOU'RE SHOWING, IF IT WOULD BE EMBEDDED CERTIFICATED MANAGEMENT WOULD BE IN THERE? YEAH.

THAT, THAT'S INCLUDED IN THERE.

SO WE HAVE CERTIFICATED MANAGEMENT.

WHICH ONE WOULD IT BE? SO FOR CERTIFICATED SALARIES, IT WOULD BE CERTIFICATED STAFF AND CERTIFICATED MANAGEMENT, IT ROLLS UP TOGETHER IN THAT EXPENDITURE.

AND SAME THING FOR CLASSIFIED, WE HAVE CLASSIFIED EMPLOYEES, BUT CLASSIFIED MANAGEMENT AND THE DIFFERENTIATION IS THE STIRS AND PERS REPORTING.

SO WE COULD BREAK IT OUT MORE IF YOU'RE, IF YOU'D LIKE US TO DO THAT.

JUST TO CLARIFY, THAT'S NOT BY, BY BARGAINING BARGAINING UNIT.

FOR EXAMPLE, I'D BE IN THE CERTIFICATED SALARIES AND ASSISTANT SUPERINTENDENT GOMEZ WOULD BE IN CLASSIFIED SALARIES.

YES, THAT IS CORRECT.

UH, SEE THAT'S WHERE I'M HAVING THE CHALLENGE OR TRYING TO UNDERSTAND THE DIFFERENTIATION BETWEEN THE TWO.

'CAUSE IN MY OTHER MUNICIPAL WORLDS, IT'S EITHER ONE OR THE OTHER.

GOT, THANK YOU.

UH, SO AND THE WAY IT ROLLS UP IT DOES, IT DOES INCLUDE BOTH.

SORRY, LORI PACHECO, UH, COULD YOU HELP ME FIND SOME INFORMATION REALLY QUICKLY? I, UH, I'M JUST TRYING TO SEE.

I WENT BACK TO LIKE SLIDE 30, UM, TO UNDERSTAND THE 29%, UM, WHICH IS THE FLAT FUNDED PART OF OUR BUDGET OF OUR, OF OUR REVENUES, THE COUNTY OPERATIONS FOR MANAGED SERVICES.

IS THERE A SLIDE THAT TELLS US HOW THAT 37 MILLION IS, UM, SPENT? THE ONE THAT JUST FOCUSES ONLY ON THAT 37 MILLION? WE DON'T HAVE AN EXPENDITURE SPECIFIC FOR THAT.

'CAUSE OUR COUNTY SCHOOL SERVICES AS A WHOLE, I WILL SAY WE DO HAVE THE SLIDE WHERE IT BREAKS OUT THE FUNDING AND WHAT THE FUNDING IS FOR.

RIGHT.

UM, BUT WE DON'T HAVE A SLIDE SPECIFIC TO THOSE EXPENDITURES.

IS THAT 37 MILLION IS THAT'S BASICALLY OUR GENERAL FUND, RIGHT? YES.

AND SO THAT'S ALL THE MONEY WE HAVE TO PLAY WITH, WITH ANYTHING.

SO I THINK THAT'S WHY I'M REALLY INTERESTED JUST TO GET A LITTLE BIT MORE, UM, MICROSCOPIC WITH HOW THAT'S HOW THAT OPERATES.

I JUST WANNA CLARIFY GENERAL FUND TO ACHIEVE THE MANDATED RESPONSIBILITIES IN ED CODE, RIGHT? NO, LET'S JUST SAY, BUT THAT'S ALSO WHAT WE USE TO SUPPORT LIKE WALDEN WEST TOO, RIGHT? YEAH.

AND OIA YEAH, THERE'S, AND LET'S JUST SAY THERE'S A DISRUPTION WITH ANY STATE FUNDED PROGRAM WE HAVE.

IT WOULD COME OUT OF THERE.

IF WE WERE TO, I IDEALLY PLAY WITH THE IDEA THAT WE WOULD TRY TO SUBSIDIZE THOSE LOSSES WITH GENERAL FUND LIKE MONIES, RIGHT? YEAH.

THAT WOULD BE THE, THE FUNDS WE WOULD DRAW FROM.

UM, AND I WAS CALLING OUT, WE CAN'T DRAW IT FROM ANYWHERE ELSE.

THE OTHER, AND, UH, ASSISTANT SUPERINTENDENT GOMEZ, MAYBE AFTER THIS WE JUST TOUCHED BRIEFLY ON COST CENTERS.

UM, THAT, THAT THE 29%, UM, IS THE REVENUE THAT WE HAVE TO USE FOR OUR MANDATED SERVICES AND A PORTION OF OUR RESERVES.

UM, BUT IF THERE IS EXCESS, THEN THAT DOES BECOME THE GENERAL FUND REVENUE.

THE OTHER SOURCE OF GENERAL FUND REVENUE COULD BE IF WE HAD OTHER REVENUE STREAMS, UM, THAT, UM, THAT DREW FROM RESOURCES OUTSIDE OF THE COUNTY.

UM, IF THERE'S A TECHNOLOGY RESOURCE, UM, ANOTHER STATEWIDE PRODUCT IN OF SAN JOAQUIN COUNTY OFFICE OF ED, UM, MANAGED THE SPECIAL ED INFORMATION SYSTEM FOR A NUMBER OF YEARS THAT GENERATED GENERAL FUND REVENUE, UM, FOR THAT COUNTY OFFICE.

AND SO RIGHT NOW THE ONLY SOURCE WE HAVE IS PRIMARILY OUR GENERAL FUND, THE ANY SAVINGS THAT WE HAVE FROM YEAR TO YEAR.

SO VICE PRESIDENT SEAN.

SO CONCEPT OF, I'M SORRY.

OH NO, GO AHEAD.

COST CENTER CONCEPT, IF YOU BRIEFLY, UM, YEAH.

SO I ALSO WANNA TOUCH ON THE, UM, RESOURCE CODE AND THE COST CENTER THAT DR.

DR.

HASSAN WAS REFERRING TO IS WHEN WE GET THE FUNDING AND IT COMES INTO OUR, OUR BUDGET AND OUR SYSTEM ON THE WAY WE HAVE TO BUDGET FOR IT, IS THAT IT HAS TO STAY IN THAT

[02:05:01]

SPECIFIC RESOURCE.

AND THEN THERE'S CERTAIN USAGES YOU CAN USE THAT FUNDING FOR.

SO FOR EXAMPLE, HEAD START, LET'S SAY THEIR FUND RESOURCE IS EIGHT 60, THE ONLY THING THAT MONEY CAN BE USED OR THE BUDGET CAN BE USED FOR IS FOR THAT PROGRAM.

SO THERE ARE LIMITATIONS ON WHAT WE CAN DO WITH THE MONEY AND IT IS VERY LIMITED, BUT THAT WOULD BE SOMETHING THAT WE WOULD HAVE TO IDENTIFY FOR THAT FUNDING SOURCE, IF THAT'S HELPFUL.

I'M SORRY, WHAT SLIDE? VICE PRESIDENT.

SO, UM, I KIND OF WANTED TO GO BACK ON THIS RETURN OF PROPERTY TAXES.

UM, UM, SO IF WE GO BACK TO THAT EARLIER SLIDE, WHICH WAS LIKE SLIDE 2021.

SORRY.

SO IN SLIDE 21, WE SEE, YOU KNOW, ONE THING I WANNA JUST CHECK ON LIKE THE HISTORY OF THIS, GIVEN THAT THIS STARTED.

SO THIS IS PART OF THIS IS THIS PART OF LIKE THE LCFF FORMULA.

SO THAT'S WHY IT STARTED IN 2013.

NOW HAS IT EVER BEEN READJUSTED SINCE 2012? 13.

SO 2013.

1213 WE WAS REVENUE LIMITS.

WE WERE IMPLEMENTED LCFF.

THEN THIS IS WHEN WE STARTED SENDING THE MONEY BACK.

WE HAD THE SLIGHT AUGMENTATION IN 23, 24, WHERE WE WEREN'T GETTING COLA ALL THE WAY UP UNTIL THAT TIME.

BUT WE WERE HELD AT THAT COUNTYWIDE A DA AT THAT TIME PERIOD.

WE HAD A SH A SMALL SHIFT IN OUR FUNDING TO GET THE COLA.

AND SO THE AMOUNTS ARE INCREASING, BUT THE AMOUNT OF COLA WE DO RECEIVE IS COMING FROM THE RETURN OF LOCAL PROPERTY TAXES.

IT'S NOT A LARGE AMOUNT, BUT WE ARE SEEING A LITTLE BIT OF BENEFITS MM-HMM .

BUT OUR COUNTYWIDE ADA IS DROPPING SO MUCH THAT IT'S REALLY DECREASING THE FULL BENEFIT OF IT.

AND THEN THIS PERCENTAGE OF THE RETURN ON PROPERTY TAX IS SET BY THE STATE SUPERINTENDENT.

IT'S, UM, BASED ON OUR, UM, IT'S BASED ON THE, UH, ED EDUCATION CODE SECTION, UH, 2 5 7, 5 E AND 2, 5, 7, 8.

SO BASIC AID COUNTY OFFICES, WHEN WE GOT FULLY IMPLEMENTED THEN THIS TRIGGERED THIS.

AND SO WE'VE BEEN IN THAT BOAT EVER SINCE.

AND THEN HOW MANY BASIC AID COUNTY OFFICES DO WE HAVE? THERE'S 12, INCLUDING US.

12.

AND THEN DO THEIR NUMBERS LOOK LIKE THIS TOO? IN, IN TERMS OF RETURNING OF THE, WE ARE THE LARGEST UHHUH .

WE WERE ONE OF THE FIRST, WE HAD SOME OTHER SMALLER COUNTIES THAT THE AMOUNTS WEREN'T SO HIGH.

WE ALSO HAD COUNTIES THAT ENTERED MIDWAY THROUGH.

'CAUSE WE MONITOR TO SEE HOW MANY COUNTY OFFICES AND THE AMOUNTS SOME HAVE ENTERED INTO BASICALLY AID LATER ON INTO THE FUNDING FORMULA.

BUT WE HAVE REMITTED THE MOST.

AND THEN THE, BUT THE PERCENTAGE THAT THEY GIVE BACK IS THE SAME AS THE PERCENTAGES SEEM.

THE, UM, IT'S DEPENDENT UPON THEIR FORMULA.

SO CDE GIVES US OUR PRINCIPAL APPORTIONMENT FORMULA.

AND THEN THAT FORMULA DICTATES HOW MUCH MONEY WE HAVE TO RETURN BASED ON THE, OUR, OUR, OUR FUNDING AMOUNT, OUR, OUR BASE FUNDING AMOUNTS.

HERE AND, AND, AND SO WE NEED TO PRIORITIZE USING THIS MONEY FOR PUBLIC ED.

SO IT CAN FLUCTUATE.

IT ALSO DEPENDS ON THE AMOUNT OF PROPERTY TAX REVENUE THAT'S GENERATED FOR EACH RESPECTIVE COUNTY.

AND THEN LIKE WHEN WE SEE THIS INCREASE, UM, LIKE THE, IN THE INCREASE IN RETURN, I MEAN, IT'S CRAZY TO THINK THAT IN SUCH A SHORT AMOUNT OF TIME, AND IT'S 10 YEARS, IT'S GONE FROM 12 MILLION TO 47 MILLION.

RIGHT.

UM, AND SO WHEN WE THINK ABOUT THAT AND HOW HAS THE RETURN HAS INCREASED, ARE WE HAVING TO THEN, UM, HOW DO I SAY THIS, OFFSET IT WITH CERTAIN PARTS OF OUR BUDGET IN ORDER TO ACCOMMODATE FOR THAT? NO.

SO WE GET, UM, IN OUR MANDATED PORTION THAT THAT CHART THAT HAS THE FLOW, IT CARVES IT OUT, AND THEN IT, WE HAVE THE FORMULA THAT SAYS THIS IS THE AMOUNT THAT YOU'RE GONNA GET EVERY YEAR.

AND IT'S BASED, NOW IT'S BASED IN OUR, UM, COUNTYWIDE A DA MM-HMM .

ANYTHING ABOVE THAT AMOUNT.

AND THAT FORMULA IS THE AMOUNT THAT WE HAVE TO RETURN MM-HMM .

AND SO THEN WHAT WILL HAPPEN IS WE'LL HAVE OUR FORMULA SAYS IS THE AMOUNT, AND THEN WE GET AN INVOICE IN APRIL OF THE FOLLOWING YEAR SAYING, THIS IS HOW MUCH MONEY YOU HAVE TO SEND BACK.

AND SO, UM, YOU KNOW, I KNOW THAT THIS IS A BIGGER CONCEPT, BUT I WOULD LOVE TO SEE US DO MORE IN ORDER TO BE ABLE TO KEEP MORE OF THAT MONDAY MONEY, ESPECIALLY AS MORE FUNDING FOR PUBLIC EDUCATION IS GOING AWAY.

AND I KNOW THAT THAT'S SOMETHING THAT WE'VE TALKED ABOUT FOR, SINCE I FIRST GOT ON THIS COUNTY BOARD ON LIKE HOW WE CAN RETAIN SOME OF THOSE FUNDS.

UM, BUT I WOULD LOVE TO JUST SEE US MORE FOCUS ON THAT, ESPECIALLY.

'CAUSE I KNOW IT'S GONNA HAVE TO COME IN SACRAMENTO, RIGHT? WE'RE GONNA HAVE TO SEE THAT PUT FORWARD.

BUT I THINK THE MORE THAT WE CAN DO THIS AND JUST, UM, I KNOW THAT THERE'S NOT MANY MEMBERS OF THE PUBLIC HERE, BUT IF THEY SAW THAT THEIR PROPERTY TAX DOLLARS WE'RE BEING USED THIS WAY, LIKE, AND WHEN THIS MONEY GETS RETURNED, IT DOESN'T GET USED FOR EDUCATION.

UM, AND SO I JUST WANT US TO BE ABLE TO DO MORE.

AND I DON'T HAVE THE ANSWER ON HOW WE'RE GONNA DO THAT.

I DON'T EXPECT YOU TO HAVE THAT ANSWER.

BUT I WOULD LOVE FOR US TO INCREASE EVEN OUR LOBBY EFFORTS OR SOMETHING TO BE ABLE TO BE ABLE TO CHANGE THIS.

UM, AND I THINK JUST THAT CHART ITSELF AND THE INCREASE IN FUNDING HAS SHOW SAYS A LOT.

UM, AND I DON'T THINK WE CAN, UH, ACCEPT THE EXCUSE THAT, WELL, SANTA CLARA COUNTY'S EXPENSIVE TO LIVE IN.

WE ALL KNOW THAT.

BUT LIKE, WE ALSO HAVE SOME GREAT SCHOOLS

[02:10:01]

UM, AND THEN I HAVE SOME QUESTIONS ABOUT DECLINING ENROLLMENT AND LEILANI MAYBE I PROBABLY SHOULD HAVE ASKED IT EARLIER, BUT DO YOU SEE THE DECLINING ENROLLMENT MORE HEAVILY AFFECTING THE BAY AREA VERSUS OTHER PARTS OF CALIFORNIA? YEAH, THERE WAS THAT ONE SLIDE IN MY PART OF THE PRESENTATION THAT SHOWED THAT SANTA CLARA WAS THE THIRD HIGHEST UHHUH IN THE DECLINING COUNTIES AND THEN ACROSS THE STATE.

SO YES, UHHUH AND THEN LIKE, DO WE SEE THAT, UM, OH GOSH, WHAT WAS I GONNA SAY ABOUT THIS? UM, WHEN WE SEE THAT DECLINING ENROLLMENT AND WHEN WE LOOK AT, UM, I, OKAY, I'M GONNA PAUSE THERE 'CAUSE I NEED MORE TIME TO LIKE FORMULATE THIS QUESTION, BUT THANK YOU FOR, UH, I JUST WANTED TO KNOW THAT PART.

THE COUNTY OFFICE IS NOT RECEIVING ADDITIONAL FUNDING TO OFFSET THESE, RISING THESE RISING COSTS BECAUSE OF THE DECLINING ENROLLMENT.

SO THIS SLIDE SHOWS THE SPECIAL EDUCATION PROGRAM ENROLLMENT, UH, OVER THE FIVE YEARS AND OUR PROJECTION FOR 25, 26, IF YOU SEE IT HERE.

UM, AS STEPHANIE MENTIONED EARLIER, UH, AT THE BEGINNING OF THE PRESENTATION, SPECIAL EDUCATION PROGRAM IS AN ELECTIVE SERVICE OFFERED BY OUR OFFICE, UH, TO THE SCHOOL DISTRICTS.

IT'S NOT MANDATORY SERVICES THAT WE HAVE TO PROVIDE.

AND OUR FUNDING IS TIED TO THE DISTRICT STUDENT ENROLLMENT.

UM, SO YOU SEE THE FLUCTUATED IN THE ENROLLMENT AS WELL AS THE NUMBER OF CLASSES OVER THE YEARS HAVE BEEN DECREASED.

AND IF I MAY ADD, GOING BACK, AND I JUST WANTED TO HIGHLIGHT, WE'VE BEEN USING THE SAME MODEL, UH, THE STAFFING MODEL AND, UH, BENCHING MODEL WITH DISTRICTS FOR A NUMBER OF YEARS.

UM, THE PROCESS OF DISTRICTS PROVIDING THE NUMBERS TO THE COUNTY OFFICE, UH, ADJUSTING THOSE NUMBERS THROUGH THE SPRING AND THEN FINALIZING THEM, UM, IN THE LATE SPRING.

UM, THERE WERE YEARS WHERE THERE, THERE WERE FEWER STUDENTS ENROLLED, BUT THE CLASS SIZE STAYED THE SAME.

AND I JUST WANTED TO CALL OUT THAT THOSE WERE DURING THE COVID YEARS.

UM, AND SO SOME OF THE, AND AGAIN, PROCEEDS, UH, THE CURRENT ADMINISTRATION, UM, AND RECOGNIZING WHAT WAS GOING ON IN THAT TIME.

BUT SOME OF THE DELAYED DECISIONS, UM, RELATED TO THE STAFFING MODEL AND CONVERSATION FOR OUR SPECIAL ED PROGRAMS IS PART OF WHAT WE'RE DEALING WITH THIS YEAR.

UH, AND SO BEING ABLE TO GO BACK THROUGH THE RE BENCHING MODELS AND SEE, UM, WHAT THE RECOMMENDATION WAS VERSUS THE DECISION THAT THE GROUP MADE AT THE TIME, UM, HELPS ME UNDERSTAND WHY WE'RE AT, UH, WHY WE'VE ARRIVED WHERE WE'VE ARRIVED THIS YEAR.

AND SO WE'LL CONTINUE TO WORK WITH DISTRICTS ON THAT MODEL TO MAKE SURE WE HAVE, UH, SUFFICIENT INPUT AND BALANCE THE, UM, THE FISCAL DRIVERS AS WELL AS MAKING SURE THAT WE'RE ABLE TO OPERATE PROGRAMS THAT MAINTAIN THE INTEGRITY, UM, OF GOOD QUALITY INSTRUCTION AND SUPPORT FOR OUR STUDENTS, BUT ALSO HONOR, UM, THE NUMBER OF CLASSROOMS OUR DISTRICTS ARE TELLING US.

WE, THEY WANT US TO OPERATE ON THAT NOTE, JUST AGAIN, TO HELP BETTER UNDERSTAND THE NUMBERS AS THEY'RE REPRESENTED.

BECAUSE PROJECTIONS ARE PROJECTIONS, RIGHT? IT'S, IT'S DIFFICULT TO QUANTIFY THAT.

IS THERE GENERAL INFORMATION THAT COULD BE PROVIDED IN TERMS OF THE BREAKDOWN TO UNDERSTAND ALSO, UH, TO BE ABLE TO COMMUNICATE WITH, WITH FAMILIES HOW THOSE TRANSITIONS ARE HAPPENING? YOU KNOW, WHICH DISTRICTS ARE, UM, RUNNING THEIR OWN PROGRAMS NOW AND, UH, JUST BETTER UNDERSTANDING THE, THE TRANSITION PLAN WITH GIVEN, YOU KNOW, IT'S, IT'S KEPT KIND OF STEADY ISH, THE NUMBER OF CLASSES AND THEN, YOU KNOW, WE ARE SEEING A SIGNIFICANT DIP HERE.

SO JUST WONDERING GENERALLY ABOUT THAT, IF THAT'S SOMETHING THAT WE CAN WORK TOWARDS.

YES, WE'LL BE WORKING WITH OUR OURSELF AS IN THE DISTRICTS.

AND I WANNA HIGHLIGHT SOME OF THE DECLINE IN ENROLLMENT IN OUR SPECIAL ED PROGRAMS IS A RESULT OF A NUMBER OF FACTORS.

UM, DISTRICTS, UM, MAY BE SERVING STUDENTS LOCALLY, BUT ALSO, YOU KNOW, STUDENTS WITH DISABILITIES AND THEIR FAMILIES MOVE AWAY FROM THE AREA JUST LIKE STUDENTS WHO ARE IN, IN GENERAL ED AGING OUT GRADUATION.

SO THERE ARE A NUMBER OF FACTORS THAT MAY BE DRIVING, UH, THE DECLINE, UH, IN ENROLLMENT FOR OUR REGIONAL PROGRAMS. BUT, UM, AGAIN, WE'LL BE ENGAGING THE, THE SELPA LEADERS, UM, AND WORKING WITH OUR DISTRICT SO THAT WE ARE, UM, SOLICITING, UH, INPUT AND, UM, BEING ABLE TO COMMUNICATE PROACTIVELY.

THANK YOU DR.

TOSIN.

SO THIS SLIDE SHOWS THE SPECIAL EDUCATION PROGRAM COST OVER THE YEARS AS WELL.

OBJECTION FOR 25, 26.

AND AS YOU SEE, UH, COMPARE THE 24, 25 AND 25 26, DESPITE PROJECTED STAFF REDUCTIONS IN THIS PROGRAM, THE ESTIMATED PROGRAM COSTS REMAIN UNCHANGED DUE TO THE HIGH OPERATING EXPENSES THAT WE ARE EXPERIENCING.

UH, WITHOUT THIS ADJUSTMENT, THE PROGRAM WOULD COST APPROXIMATELY $10 MILLION MORE.

UH, BUT

[02:15:01]

SO JUST TO CLARIFY ON THAT, THERE WAS A QUESTION THAT WAS BROUGHT UP.

IF WE JUST LEFT EVERYTHING STATUS QUO, WITH THE DECLINE IN STUDENTS, THE AMOUNT OF THE COST WOULD'VE BEEN ABOUT $137 MILLION IF DISTRICTS DON'T WANNA ENROLL THEIR STUDENTS.

WE WERE LOOKING AT SOME CLASSES THAT IT WOULD BE SEVEN, $800,000 FOR A STUDENT AND THAT'S NOT SUSTAINABLE FOR OUR DISTRICTS.

SO WE DO LOOK AT THAT WHEN WE ARE WORKING WITH THE DISTRICTS AND GET THEIR INPUT ON THE COST, THE NUMBER OF STUDENTS.

UM, ALSO THIS IS A FEE FOR SERVICE, SO WE'RE PROJECTING IT BASED ON THE NUMBER OF STUDENTS THAT ARE SLATED TO ENROLL IN THE PROGRAMS. BUT IT'S A FEE FOR SERVICE, MEANING WE HAVE TO INCUR THE COST TO SERVE THE STUDENTS AND THEN WE SEEK REIMBURSEMENT AFTER.

SO I WANTED TO CLARIFY THAT JUST TO HIGHLIGHT THE REVENUE THE DISTRICTS RECEIVE FOR STUDENTS, UM, WHO ARE ELIGIBLE FOR SPECIAL ED.

THERE'S THE LCFF FUNDING AND THEN THE STATE AND FEDERAL SPECIAL ED FUNDING, I'D SAY HIGH END PER STUDENT TO DISTRICT MIGHT BE GENERATING 14 TO 15,000 BETWEEN THE GENERAL, THE LCFF DOLLARS AND THE, UM, SPECIAL ED REVENUE.

UM, THE COST OF SPECIAL ED IS INCREASING, UH, IN COUNTY OPERATED PROGRAMS WHEN DISTRICT PROGRAMS AS WELL.

AND SO DISTRICTS ARE, UM, FEELING THE PRESSURE FOR THE PROGRAMS THAT THEY'RE OPERATING AS WELL.

UM, AND WHEN YOU CONSIDER THE POTENTIAL COST OF A SEAT IN ONE OF OUR CLASSROOMS CAN BE WELL ABOVE SIX FIGURES, UM, THE DIFFERENCE IS ALL GENERAL FUND REVENUE FOR OUR, OUR PARTNERS TRUSTEE PACHECO.

SO, UM, I GUESS IT'S MORE JUST A COMMENT.

IT'S JUST SO, UH, CONCERNING TO SEE, YOU KNOW, WE'RE RUNNING A PROGRAM THAT'S GONNA HAVE FOR 25, 26, 16 CLA LESS CLASSROOMS, 107 LESS STUDENTS FOR THE SAME PRICE THAT IT WAS THE YEAR BEFORE.

UM, AND SO WHAT, WHILE JUST THE YEAR PRIOR TO THAT, THOU 10 26 AND THE SAME AMOUNT OF CLASSES, MORE OR LESS, UM, IT WAS, YOU KNOW, 110 MILLION.

SO WHAT EXACTLY BESIDES, YOU KNOW, INCREASING PENSION COSTS, UM, AND OTHER LIKE PREDICTABLE ASSUMPTIONS THAT CAN IMPACT, YOU KNOW, A BUDGET, BUT WHAT ARE SOME OF THE OTHER THINGS THAT PEOPLE MAY NOT KNOW THAT ARE REALLY LEADING TO THIS HUGE INFLATION OF COSTS FOR SPECIAL EDUCATION THAT'S MAKING US, YOU KNOW, MAINTAIN THE SAME AMOUNT OF EXPENDITURES? UM, FOR LESS STUDENTS IN LESS CLASSROOMS? I WOULD SAY THE BIGGEST, UH, COST WOULD BE THE STAFFING, RIGHT? AND SO THE STAFFING, WE SHARE THE CHARTS WHERE WE HAVE THE INCREASE IN THE SALARY COSTS OVER LIKE, YOU KNOW, THREE YEAR PERIOD OVER THE 10 YEAR PERIOD TIMEFRAME.

THOSE COSTS ARE CUMULATIVE.

AND THEN ALSO WITH OUR PERS RATES RISING AND STIRS RATES RISING, THOSE ARE ALL COMPOUNDING TO INCREASE THE COST.

WE ALSO HAVE, AS LAUREN MENTIONED, EVEN IF WE DON'T HAVE CONTRACTED SALARY INCREASES FOR A YEAR, WE ALWAYS HAVE A 5% INCREASE FOR STAFF BASED ON STEP AND COLUMN.

SO THAT'S, IF I'M AN EMPLOYEE AND I'M AT A STEP ONE, I'M GONNA MOVE TO STEP TWO, THOSE ARE INCREASING COSTS THAT WE NATURALLY HAVE ON TOP OF THAT.

SO THE BULK OF IT IS STAFFING COSTS.

AND SO AS WE SHOWED IN ANOTHER SLIDE, THE BULK OF OUR STAFF ARE FUNDED BY OUR SPECIAL ED PROGRAM.

I'D ALSO HIGHLIGHT AFTER THE PANDEMIC, UH, STATEWIDE, THERE WAS, UH, LOTS OF BEHAVIORAL CHALLENGES, UM, IN CLASSROOMS AS KIDS WERE COMING BACK IN.

AND SO WHILE THE NUMBER OF CLASSROOMS MAY HAVE DROPPED, THE NUMBER OF STAFF NEEDED TO SUPPORT STUDENTS MIGHT HAVE ACTUALLY INCREASED, UH, IN SOME AREAS.

HMM.

THROUGH THE GENERAL FUND.

SO THIS HIGHLIGHTS THE SPECIAL EDUCATION PROGRAM EXPENDITURE ASSUMPTIONS FOR 25 26, AS YOU SEE IS HERE.

UM, I JUST WANT TO EXPLAIN A LITTLE, A LITTLE BIT MORE THE AVERAGE SALARY COST TO THE PROGRAM PER FTE.

THIS IS NOT THE SAME SALARY, UM, AS YOU SEE ON THE SALARY SCHEDULE.

UH, WE INCLUDE THE, UH, OVERTIME, EXTRA TIME WHEN WE CALCULATE THE COST TO THE PROGRAM AS WELL AS LIKE VACATION PAYOUT OR OTHER STIPENDS LIKE LONGEVITY STIPENDS WHEN STAFF REACH CERTAIN NUMBER OF YEARS OF SERVICE.

AND THEN WE INCLUDE THAT AS WELL, DECREASED STIPEND OR OTHER STIPEND LIKE BILINGUAL OR UM, CELL PHONE STIPENDS.

AND THIS IS THE SUMMARY OF OUR ELECTION CALLS, UM, FROM 20 18 19 THROUGH, UM, THE CURRENT YEAR.

SO, UH, WE THE, I JUST WANT TO HIGHLIGHT THAT THE ELECTION COST IS THE RECURRING EXPENSES EVERY TWO YEARS.

UH, IT'S SIGNIFICANT PART OF OUR COUNTY OFFICE OPERATING BUDGET AND FUNDED

[02:20:01]

SO FOR 24, 25, WE PROJECTED TWO MILLIONS AT THE BEGINNING.

BUT OUR ACTUAL COST, WHEN WE RECEIVE THE INVOICE FROM THE COUNTY, UH, OFFICE, IT'S UM, 1.64 MILLION.

THAT'S THE ACTUAL AMOUNT THAT WE PAID, UM, AS WE INVOICE BY THE COUNTY OFFICE.

AND THESE COSTS ARE EXPECTED TO RECUR IN FISCAL YEAR 26, 27.

UH, UNDERSCORING THE NEED OF ONGOING BUDGET PLANNING TO ACCOMMODATE THIS ESSENTIAL SERVICE.

UM, OUR RESPONSIBILITY FOR THE ELECTION.

I ALSO WANNA HIGHLIGHT THAT ALSO COMES OUT OF OUR COUNTY OPERATIONS FUND.

SO WE DON'T GET ADDITIONAL MONEY FOR THE ELECTION CAUSE SO IF THEY RAISE SIGNIFICANTLY, WHICH THEY HAVE OVER THE PAST FEW YEARS, WE HAVE TO ABSORB THAT IN OUR GENERAL FUND BUDGET AS WELL.

STATE OR VICE PRESIDENT, JOHN.

UM, THESE ELECTION COSTS ARE LIKE FOR OUR ELECTIONS? YEAH.

OH, OKAY.

JUST CONFIRMING.

UM, AND THEN GOING BACK, ONE SLIDE, JUST SOMETHING THAT I NOTICED.

UM, IS THERE A REASON THAT THE AVERAGE BENEFITS IS LIKE, YOU KNOW, 15, $20,000 HIGHER FOR OCCUPATIONAL THERAPISTS AND PHYSICAL THERAPISTS VERSUS THE OTHER PROFESSIONS? YEAH, SO FOR, UH, IF IT'S CLASSIFIED STAFF, THE PERS RATES ARE HIGHER.

SO WHEN WE LOOK AT THE AVERAGE BENEFITS, IT'S THE HEALTH AND WELFARE BENEFITS WE PROVIDE, BUT IT'S ALSO STATUTORY BENEFITS.

SO IT WOULD BE THEIR SALARY COSTS APPLIED TO THE PERS RATE.

'CAUSE WE ARE REQUIRED TO PAY THAT.

SO THAT'S ALSO THE EMPLOYER SHARE.

OH, I SEE.

SO THE OTHER THING TO HIGHLIGHT TOO IS WHEN WE HAVE STAFF THAT SUPPORT THESE PROGRAMS, THE DISTRICT ESSENTIALLY HAVE TO PAY FOR ALL THE COSTS ASSOCIATED WITH THE STAFF.

'CAUSE LIKE TEACHERS, SLPS AND PSYCHS, THEY'RE ALL CERTIFICATED.

SO THEY'D BE UNDER STIRS AND THEN TS IS UNDER PERS AND THEN AIDS.

ARE THEY UNDER PERS AS WELL? THEY'RE PERS THEY'RE PERS, OKAY.

SO WITH THAT RATE, YOU CAN SEE KIND OF THE DIFFERENCE IN THE STIRS RATE BEING 19 POINT 10, BUT THEN WITH PERS GOING UP, IT IS A SIGNIFICANT INCREASE IN EMPLOYER COSTS.

SO, SO THE DIFF MAIN DIFFERENCE HERE IS THE PURSE COST, CORRECT.

PER VERSUS MM-HMM.

AND IN ADDITION TO THE PURSE RATE IS HIGHER THAN THE STORE RAISED, UM, THE CLASSIFY EMPLOYEES ALSO SUBJECT TO SOCIAL SECURITY BENEFITS, SO THAT'S ANOTHER 6.2%, UM, FACTOR INTO OUR SALARY, UH, BENEFITS COST.

AND UH, THIS SLIDE PROVIDE A LIST OF FACILITY PROJECTS THAT WE BUDGETED FOR 24 25, AND WE HAVE, UM, RED DEPART GENERATOR PROJECT AS WELL AS THE EV CHARGER PROJECT.

AND, UM, LIKE ELEVATED REPLACEMENT, JUST ONE TO HIGHLIGHT THAT THESE PROJECT, UH, ONE TIME FACILITY PROJECT AND IF WE UNABLE TO, UH, COMPLETE THE PROJECT IN THE CURRENT YEAR, WE WILL HAVE TO CARRY OVER THE FUNDS TO THE FOLLOWING YEAR SO THAT WE CAN COMPLETE, COMPLETE THE PROJECT IN THE FOLLOWING YEARS.

SO JUST, WE'VE TALKED A LOT ABOUT SOME OF OUR BUDGETARY PRESSURES, UH, WANTED TO LOOK AT OUR ELECTRICITY EXPENDITURES.

SO I KNOW WE HAVE THE SOLAR PROJECT, YOU CAN SEE IT OUT IN THE PARKING LOT IS, IS PROGRESSING WELL, BUT THIS IS WHAT OUR PROJECTIONS ARE FOR OUR ELECTRICITY COSTS.

SO THAT'S AN AREA THAT WE'RE CLOSELY MONITORING.

UH, ALSO WE TALKED ABOUT HEALTH AND HEALTH AND WELFARE EXPENDITURES.

SO WE ARE, UM, EXPECTING AN INCREASE FROM 32 TO 38 MILLION, UH, FOR 24 25.

SO THOSE ARE, UM, EMPLOYER COSTS THAT, THAT WE DO ABSORB EACH YEAR.

THE OTHER ONE IS STIRS AND PERS.

SO AS YOU CAN SEE WITH THE PROJECTED INCREASES IN OUR PERS COSTS, WE SAW, YOU KNOW, IT WAS 28 MILLION, UM, THAT WE'RE, WE'RE ESTIMATING FOR PERS FOR 24, 25, AND 19.8 MILLION FOR STIRS IN 25, 26.

WE'RE SEEING THAT BEING, YOU KNOW, 28 MILLION AND THEN 19 MILLION.

SO IF THAT PERS RATE CHANGES OR AS IT INCREASES IN OUR MULTI-YEAR PROJECTIONS, THOSE AMOUNTS WILL ALSO INCREASE.

AND THEN STATE AND FEDERAL UPDATES.

WE JUST WANTED TO HIGHLIGHT, I KNOW WE TOUCHED ON SOME OF THIS BEFORE, BUT WE DID WANNA GIVE A QUICK UPDATE HERE.

SO, UM, LAUREN, I'LL HAVE YOU GIVE A HIGHLIGHT ON THAT.

A NOTIFICATION OF AWARD FROM THE REGIONAL OFFICE.

FOR STATE FUNDING, UH, WE EXPECT THE CHANGING IN THE FORMULA OF CALCULATE THE, OUR FUNDING, UM, REVENUES FROM ENROLLMENT TO THE AVERAGE DAILY ATTENDANCE.

AND, UH, THE, OUR CURRENT BUDGET FOR 24 25 IS 28.7 MILLION.

UH, HOWEVER, WE ANTICIPATE A, A SIGNIFICANT REDUCTION IN THE 25 26 BASED ON THE CHANGE IN THE FAM FORMULA.

AND FOR TOBACCO USE PREVENTION EDUCATION, WE INFORM BY THE CDE THAT PROJECTED REDUCTION OF 50% OF FUNDING AS WELL AS THE HEAD START PROGRAM AND EARLY HEAD START.

WE ARE IN THE FINAL YEAR OF THE FIVE YEAR PROJECT PERIOD.

UH, EVEN THOUGH WE ACTIVELY ENGAGE IN THE, UM, GRANT APPLICATION PROCESS, HOWEVER, WE, UM, WE UNABLE TO, UH, THE, THE FUNDING'S STILL UNCERTAIN UNTIL WE RECEIVED

[02:25:01]

AND, UH, WE, FOR THE MIGRANT ADD, WE ASKED THE, THE CURRENT BUDGET FOR 24 25 8 0.3 MILLION.

AND WE ALSO RECEIVED THE FUNDING, UM, DISCONTINUATION FOR THE TWO YOUTH YOUTH HEALTH AND WELLNESS FEDERAL GRANTS, UH, WITH THE APPROXIMATE OF $6.2 MILLION FOLLOW UP QUESTIONS ON THIS SLIDE.

SO WITH THE, THE STATE PRESCHOOL FUNDING ALLOCATION, I KNOW THAT'S SOMETHING THAT WE, UH, DISCUSSED OR TRIED TO ADVOCATE FOR AT THE OUR, AT OUR DURING OUR ADVOCACY DAY.

UM, THAT IS THAT BASED ON A PERCENTAGE THAT, IS THAT THE DELTA THERE, THE LOSS OF 28.7 MILLION? THAT'S BASED ON US TRANSITIONING FROM DURING COVID.

THE GOVERNOR DID A HOLD HARMLESS WHERE IT WAS ENROLLMENT BASED, SO THAT'S WHERE IT WAS, WE CAN EARN UP TO 28.7 MILLION.

IT WAS REIMBURSEMENT BASED, UH, THAT IS SET TO END AT THE END OF THIS FISCAL YEAR 24 25 THAT WE WOULD TRANSITION BACK TO AVERAGE DAILY ATTENDANCE.

SO BASED ON WHAT OUR AVERAGE DAILY ATTENDANCE HAS BEEN MM-HMM .

OUR REDUCTION IS ABOUT 22 MILLION.

SO OUR GRANT AWARD WILL REDUCE FROM 28.7 TO 6.2 MILLION.

AND THAT'S BASED ON CD'S PROJECTIONS, BASED ON WHAT OUR AVERAGE DAILY ATTENDANCE HAS BEEN FOR THAT PROGRAM.

WE WERE HOPING TO SEE IT IN THE MAY REVISE.

WE DIDN'T SEE IT BECAUSE OF THE STATE OF THE BUDGET.

THERE WAS TALK THAT THERE WOULD BE SOME ADVOCACY SURROUNDING THAT AND IF THERE'D BE A CHANGE, BUT WE DIDN'T SEE IT.

AND I DON'T KNOW IF WE'RE GONNA SEE IT IN THE ENACTED BUDGET.

THERE'S STILL, YEAH, FOR THE CALIFORNIA STATE PRESCHOOL PROGRAM, THERE ARE STILL CONVERSATIONS ABOUT THAT PART.

I KNOW THAT THE GR TEAM FOR THE COUNTY OFFICE, IT HAS CONTINUES TO ADVOCATE THAT FOR THAT.

SO WE'RE HOPEFUL THAT WE'LL SEE IT IN THE ENACTED BUDGET, BUT UNCERTAINTY THERE.

AND THE OTHER THING THAT I WILL ADD IS, UM, ONE OF THE THINGS THAT WAS A, A LITTLE BIT OF A SURPRISE IN THE MAYOR REVISION IS THAT THE COLA WAS SUSPENDED FOR THE CALIFORNIA STATE PRESCHOOL PROGRAM.

UM, ORIGINALLY IT WAS GOING TO BENEFIT FROM THE STATUTORY COLA.

UM, THAT WAS, THAT WAS INCLUDED IN THE JANUARY BUDGET PROPOSAL AND THEN IN THE MAY REVISION, UM, THE COLA WAS SUSPENDED FOR THE CALIFORNIA STATE PRESCHOOL PROGRAM SPECIFICALLY.

IT JUST SEEMS LIKE SUCH A DRASTIC, UH, I MEAN I UNDERSTOOD OBVIOUSLY THE DIFFERENCE BETWEEN A DA AND ENROLLMENT BASE, BUT TO GO DOWN TO 6 MILLION, IS THAT WHAT YOU SAID? 6.2 IS POINT.

OUR PROTECTION POINT.

YEP.

YEAH, THAT'S, THAT'S SUCH A SEVERE DE DECLINE, SO THANK YOU.

UH, TRUSTEE PACHECO, YOU SAID THAT IT WAS, UH, REIMBURSEMENT BASED FOR UP TO 28 MILLION IN THE ENROLLMENT APPROACH, RIGHT? CORRECT.

AND AS WE TRANSITION TO A DA, IS IT NOT GONNA, IT'S NOT GONNA BE REIMBURSEMENT BASED ANYMORE? I BELIEVE IT'S, YES.

SO, UH, THE, STEPHANIE MENTIONED EARLIER, THE WHOLE HOMELESS END IN JUNE 30TH, 2025.

UH, THE CA THE CURRENT CALCULATION IS THAT THE LESSER OF THE CONTRACT AMOUNT OR THE COST OF THE SERVICES.

SO WHEN WE, RIGHT NOW, IF WE INCUR THE SERVICES AND THEN WE CLAIM FOR THE REIMBURSEMENT, THE STATE, WE REIMBURSE US BASED ON THE AMOUNT THAT WE, UM, PAY FOR THE SERVICES, UH, WHICHEVER IS LESSER OF THE, UM, THE COST, OUR COST OR THE CONTRACT AMOUNT THAT STAY AWARDED TO US.

SO IT'S SELLING OF UP TO 6.2 MILLION.

SO IT'S REIMBURSEMENT BASED, TO ANSWER YOUR QUESTION, IT STILL IS.

AND THEN I GUESS THE SUSPENSION OF COLA, HOW MUCH DID THAT CONTRIBUTE TO THE 16 MILLION? UH, 6 MILLION, UH, REDUCTION.

I APOLOGIZE.

I'M REALIZING THAT THE SUSPENSION OF THE COOLER IS FOR 25, 26.

SO IT WOULDN'T BE INCLUDED IN THE 24 25.

SO SORRY FOR CONFUSING THE CONVERSATION THERE.

THANKS.

DID YOU HAVE A OKAY ON, ON THIS FOR ONE, ONE OTHER ASPECT, THE MIGRANT EDUCATION THAT'S ALSO REIMBURSEMENT MODEL.

SO TO BE ABLE TO CONTINUE THE PROGRAM, THE FUNDS FOR NEXT SCHOOL YEAR HAVE NOT BEEN ALLOCATED YET.

WE HAVEN'T RECEIVED CONFIRMATION YET THAT WE WILL RECEIVE THE FUNDING OR WHAT AMOUNT WE WILL RECEIVE.

SO EVERY YEAR AROUND THIS TIME, WE WOULD GET SOMETHING FROM, YOU KNOW, I THINK IT'S CDE NORMALLY, OR SAYING THIS IS THE AMOUNT OF ALLOCATION YOU'RE, YOU'RE GOING TO GET OR AN ATTEMPT TO AWARD.

I KNOW OUR TEAMS HAVE ACTIVELY BEEN REACHING OUT, BUT WE HAVE NOT RECEIVED ANY INFORMATION YET.

BUT EVEN AS A REIMBURSEMENT BASED MODEL MM-HMM .

THERE, THERE WOULDN'T BE CONFIRMATION WE WOULD GET, IT'S A REIMBURSEMENT BASED MODEL.

WE WOULD GET CONFIRMATION OF OUR GRANT AWARD, UM, AMOUNT.

SO IF WE GET THAT, THEN WE CAN, WE CAN RUN THE PROGRAM AND THEN WE CAN REIMBURSE UP TO THAT GRANT AWARD AMOUNT.

SO WE HAVEN'T BEEN ALLOCATED MONEY BEYOND THIS CURRENT PHYSICAL, CORRECT.

YEAH, THAT, THAT GRANT AWARD THAT WE GOT EXPIRES JUNE 30TH, 2025.

[02:30:01]

YES, THAT'S CORRECT.

MM.

AND THERE'S NO, AND, AND DO OTHER COUNTY OFFICES OF EDUCATION RUN MIGRANT EDUCATION PROGRAMS WITHOUT THE SUPPORT OF TITLE ONE, UM, FUNDS? I WOULD SAY, I'M NOT SURE ANYONE HAS BEEN IN THIS CIRCUMSTANCE BEFORE.

AND AGAIN, WHEN YOU RECEIVE A GRANT THAT IS THE AUTHORIZATION FOR YOU TO PROVIDE SERVICES WITHOUT THE GRANT, YOU'RE RUNNING A PROGRAM.

UM, BUT YOU'RE MAY NO LONGER BE ADHERING TO THE FEDERAL, YOU KNOW, EXPECTATIONS AND MANDATES.

AND SO THERE ARE A NUMBER OF OTHER CONSIDERATIONS THAT YOU MUST THINK THROUGH IN TERMS OF USE OF PUBLIC DOLLARS.

HOW DO YOU DETERMINE ELIGIBILITY FOR A LOCALLY RUN PROGRAM? YEAH, SO THIS CHART HERE, JUST SHOW US THE, UM, MORE VISUAL, UM, EFFECT OF THE, UM, PREVIOUS SLIDE ON THE CHANGES IN THE SOME STATE AND FEDERAL FUNDING SOURCES.

AND, AND AS YOU SEE, UM, THE STATE SCHOOL PROGRAMMED, THE WHO HOMELESS, AS WE MENTIONED EARLIER, IT ENDS IN JUNE 30TH, 2025 AND OUR, UH, EFFECTIVE JULY 21, JULY 1ST, 2025, THE SERVICE EARNING WILL BE DETERMINED BY THE ATTENDANCE.

SO THAT'S WHY YOU SEE A SIGNIFICANT DECREASE IN THE STATE PRESCHOOL PROGRAM.

AND THEN I WANT TO HIGHLIGHT THAT MOST OF OUR, UM, FEDERAL FUNDED, UM, GRANTS, WE, UH, THAT'S REIMBURSEMENT BASE AND THE, OUR OFFICE HAS TO PAY UPFRONT FOR THE COST THAT, UM, THE SERVICE THAT WE INCURRED AND WE HAVE TO SUBMIT THE REIMBURSEMENT REQUEST THROUGH SOME FEDERAL PORTALS.

AND THEN WITH THE NEW REQUIREMENT FROM THE FEDERAL AGENCIES, WE HAVE TO MAKE SURE THAT WE ENTER ALL THE DESCRIPTION FOR OUR EXPENSES AND THEN THEY WILL REVIEW WHETHER THEY APPROVE TO, UH, REIMBURSE US.

SO THANKS.

BYE STEPHANIE.

UH, SO, UH, NEXT STEPS WOULD BE OUR PUBLIC HEARING FOR THE 25 26, UH, LCAP AND COUNTY SCHOOL SERVICE FUND BUDGET.

AND THAT'S SCHEDULED FOR JUNE 11TH, UH, WITH ADOPTION ON, ON THE JUNE 18TH MEETING.

SO THAT CONCLUDES OUR PRESENTATION AND WE'RE HAPPY TO ANSWER ANY OTHER QUESTIONS.

THANK YOU VERY MUCH TO THE TEAM FOR ALL OF THAT OVERVIEW AND PRESENTATION.

TRUSTEES, ARE THERE ANY ADDITIONAL QUESTIONS OR COMMENTS? I HAVE SOME QUESTIONS.

UH, PRESIDENT BERTA, WHEN IT'S, I'M HAPPY TO GO LAST.

YES, GO AHEAD TRUSTEE CHRISTIAN.

AND UM, DR.

TOSIN, I DID EMAIL YOU THE QUESTIONS.

UM, YOU KNOW, SOME OF 'EM ARE A BIT DETAILED AND A LOT OF THEM, UH, REVOLVE AROUND SOME OF THE LINE ITEMS WE'VE BEEN TALKING ABOUT.

AND I KNOW WE'VE RECEIVED AT LEAST SOME PUBLIC COMMENT ABOUT THEM.

AND SO, UM, BUT I FIRST WANNA ASK WHEN THE LAST TIME OUR OFFICE, UH, TAPPED INTO OUR RESERVE.

UM, I WOULD SAY I, SINCE I'VE BEEN HERE, I HAVE, WE HAVE NOT TAPPED INTO THAT RESERVE.

I, I KNOW SOME OF THE TEAM HAVE BEEN HERE LONGER AND WE HAVEN'T TAPPED IN IT SINCE SOME OF OUR STAFF HAVE BEEN HERE.

SO THE RESERVE WOULD BE AN ECONOMIC UNCERTAINTY.

WE WOULD HAVE TO BE IN A PRETTY DIRE BUDGET SITUATION TO TAP INTO THAT RESERVE.

IT COULD BE A CASHFLOW ISSUE, IT COULD BE SOMETHING THAT WOULD REQUIRE THAT.

SOME OF, UM, OUR APPROACHES TO OUR, OUR LEGAL SERVICES.

THAT'S HELPFUL.

JUST WANTED TO KNOW.

UM, AND I'M LOOKING AT THE, OUR BUDGET CODES 4,300, WHICH IS MATERIALS AND SUPPLIES AND 5,100, WHICH IS SUB AGREEMENTS AND 5,800, WHICH IS PROFESSIONAL AND CONSULTING SERVICES.

AND I KNOW THIS WAS BROUGHT UP A BIT EARLIER, BUT, UM, YOU KNOW, I WANTED TO SEE, AND DR.

TOSSIN, YOU DID GIVE A BIT OF AN EXPLANATION AND WOULD LOVE TO HEAR MORE, BUT I WANTED TO HEAR IF, FOR INSTANCE, ANY OF OUR CONSULTING SERVICES OR SUB AGREEMENTS COULD BE, YOU KNOW, RENEGOTIATED OR SCALED BACK OR DELAYED OR POTENTIALLY NOT RENEWED TO HELP FREE UP GENERAL FUND DOLLARS BECAUSE THERE WAS A HUGE INCREASE, UM, UM, IN, IN THAT BUCKET.

SO WE WILL LOOK INTO THAT AND I BELIEVE IN THAT BUCKET OF, UH, OF EXPENDITURES AND WE TOUCHED ON THAT AT THE LAST BOARD MEETING, UH, THE, THE, UH, ABNORMALLY HIGH YEAR OF LEGAL COSTS THIS YEAR, UM, THAT WE ARE PLANNING TO REDUCE NEXT YEAR AND RESTRUCTURE

[02:35:01]

UM, AND WE WILL BE LOOKING AT CONTRACTS, UH, THAT NEED TO BE RENEWED FOR THE CONTINUED OPERATION OF PROGRAM, UM, AND OTHER CONTRACTS THAT UM, MAY NO LONGER BE ESSENTIAL.

AND I WAS HOPING TO GET, UM, AN UPDATED SNAPSHOT OF OUR ACTUAL SPENDING AS WELL AS UM, OUR PLANNED EXPENSES FROM NOW UNTIL JUNE AND TO SORT OF SEE IF, YOU KNOW, WE'RE MEETING WHAT WE'RE WE'VE PROJECTED THERE.

AND BY THE WAY, THANK YOU FOR ANSWERING ALL MY EMAILS, DR.

TOSIN.

UM, AND COULD WE, IN THAT SNAPSHOT GET A BREAKDOWN OF WHAT EXPENSES ARE DISCRETIONARY VERSUS NON-DISCRETIONARY? CAN I ANSWER? OKAY.

SO I WILL SAY THAT, UM, BASED ON OUR REPORTING PERIODS IN THE WAY THAT OUR SYSTEM IS SITUATED, WE DON'T HAVE A MECHANISM TO PRODUCE A REPORT THAT WILL RUN EVERYTHING IN THAT WAY THAT YOU DESCRIBED.

HOWEVER, WHEN WE DO BRING THE BUDGET FORWARD, WE DO HAVE OUR ESTIMATED ACTUALS.

WE HAVEN'T CLOSED OUR BOOKS FOR 25, 24, 25 YET, BUT THAT WILL GIVE A SNAPSHOT AND TIME OF WHAT OUR PROJECTIONS ARE BASED ON OUR SPEND THUS FAR.

SO THAT WOULD BE SOMETHING WE CAN HIGHLIGHT AND EMPHASIZE WHEN WE DO THE JUNE 11TH PUBLIC HEARING.

UM, SO WHEN WE DO PUBLISH THAT, IF THERE ARE SPECIFIC QUESTIONS, UM, PLEASE FEEL FREE TO LET DR.

TOSSA KNOW, BUT THAT WOULD BE THE LATEST SNAPSHOT THAT WE WOULD BE ABLE TO PRODUCE AT THIS POINT IN OUR FISCAL YEAR.

TOSIN AND ASSISTANT SUPERINTENDENT GOMEZ.

BECAUSE THE HOPE IS TO GET A SENSE IN THOSE CATEGORIES LIKE WHAT FUNDING IS UNSPENT AND WHAT REMAINING FUNDS CAN BE DIRECTED TOWARDS STAFF AND MORE OF OUR STUDENT FACING SERVICES.

UM, SO WOULD THAT BE, UH, REFLECTED IN YOUR UPDATE? ASSISTANT SUPERINTENDENT GOMEZ? WE COULD HIGHLIGHT OUR ESTIMATED ACTUALS, BUT I WOULD LIKE TO ALSO CLARIFY THAT IF WE HAVE GRANT FUNDED POSITIONS, THE GRANT DOLLARS ARE THE ONLY DOLLARS THAT CAN BE USED FOR THOSE RESPECTIVE POSITIONS.

SO WE HAVE VERY LIMITED GENERAL FUND, WHICH IS WHY WE'RE LOOKING AT MAKING BUDGET ADJUSTMENTS.

SO WE DON'T HAVE FLEXIBILITY TO USE FUNDING FROM ONE RESOURCE CODE TO PAY FOR A GRANT FUNDED SERVICE OR A NON-MANDATED SERVICE.

SO WE COULD DEFINITELY, SO LIKE FOR INSTANCE, SORRY TO CUT YOU OFF.

NO, IT'S OKAY.

GO AHEAD.

I WAS JUST GONNA SAY IN THE CASE OF HEAD START, IF FOR EXAMPLE, OUR GRANT AWARD WAS 38 MILLION FOR 24 25, THAT IS THE PERIOD OF TIME WE WOULD HAVE TO SPEND THAT MONEY.

WE COULD DO A HIGH LEVEL ESTIMATED ACTUALS ON THIS IS THE AMOUNT OF THE GRANT AWARD, THIS IS HOW MUCH WE'VE EXPENDED TO DATE, THIS IS HOW MUCH WE THINK WE'RE GONNA SPEND AND WHAT THE DELTA MAY BE OF POTENTIAL GRANT AWARD FUNDING THAT MAY BE AVAILABLE FOR CARRYOVER.

BUT WE WON'T HAVE THE ABILITY TO SHOW WHAT OUR GENERAL FUND IS FOR OTHER PROGRAMS. 'CAUSE WE'RE VERY LIMITED ON OUR BUDGET AND OUR GENERAL FUND CATEGORIES.

AND SO, LIKE FOR INSTANCE, THE THREE BUDGET CODES I MENTIONED ARE, IS A LOT OF THAT GRANT FUNDED FOR LIKE THE MATERIALS AND SUPPLIES OR THE CONSULTING? YEAH, SO ON THE, UM, ON THOSE SPECIFIC CODES WHEN WE DID LOOK AT THEM CLOSER, UM, IN THE HEAD, THE CASE OF HEADSTART, HEADSTART DOES HAVE, UH, CONTRACTS IN THE 5,800 IF THEY'RE SUBCONTRACTS THAT ARE WRITTEN INTO THEIR GRANTS, IT'S FOR SJB AND KANGO, WHICH ARE THEIR SERVICE PROVIDERS THAT ARE WRITTEN INTO THE GRANT AND APPROVED.

SO BECAUSE WE DO CONTRACT WITH THEM FOR SERVICES AS PART OF THE GRANT AND IT ALIGNS TO THE SPIRIT OF THE GRANT, THERE ARE TIMES WHEN IF THEIR INVOICING IS INCREASING IN THAT RESPECTIVE AREA, THEY WOULD HAVE TO REALLOCATE BUDGET FROM ONE BUDGET CATEGORY THAT MAYBE THEY'RE NOT SPENDING AS MUCH INTO ANOTHER.

SO THAT IS COMMON, THAT IS TYPICAL AND IT TRULY IS BUDGET UNTIL WE INCUR THE EXPENSES.

BUT THAT IS VERY COMMON.

SO THAT WAS SOME OF THE MOVEMENT YOU SAW WAS PROGRAMS TAKING THEIR BUDGET ALLOCATIONS AND MOVING 'EM INTO OTHER BUDGET CATEGORIES WHERE THERE MAY BE AN AREA OF NEED AND WITH, IF YOU WILL, AND SORRY, GO AHEAD.

AND WITH SOME OF THE STATEWIDE, UH, CAPACITY BUILDING GRANTS THAT WE HAVE, FOR EXAMPLE, COMMUNITY SCHOOLS, UM, OUR GEO LEAD REGION WORK, UH, SOMETIMES CONSULTANTS ARE NECESSARY, UM, TO ACHIEVE THE DELIVERABLES OF THOSE GRANTS.

AND SO REDUCING, UM, THOSE CONTRACTS DO NOT FREE UP DOLLARS TO THEN SHIFT INTO SPECIAL ED OR HEAD START.

WELL, AND SO THIS IS REALLY HELPFUL FOR ME, UM, DR.

AND SO THAT'S WHY, YOU KNOW, RECEIVING AN UPDATED REPORT OF ACTUAL TO DATE FOR THOSE BUDGET CATEGORIES WOULD BE REALLY HELPFUL FOR ME JUST 'CAUSE IT'S NOT TOTALLY CLEAR FROM JUST THAT EXPLANATION.

UM, AND YOU KNOW, JUST I DO THINK THAT OBVIOUSLY A REPORT ON THOSE FINANCIAL EXPENSES FOR THOSE THREE CATEGORIES, I BELIEVE CAN BE RUN, YOU KNOW, UM, IF IT'S

[02:40:01]

NOW OR TODAY OR TOMORROW.

LIKE I, I KNOW THAT YOU WERE TALKING ABOUT OUR INTERIM REPORT, BUT, UM, I DON'T THINK IT WOULD BE THAT DIFFICULT TO JUST RUN A REPORT ON THOSE THREE CATEGORIES.

SO I DO WANNA EMPHASIZE MY REQUEST THERE.

UM, AND THEN I WANTED TO ASK, ARE THERE INTERNAL POLICIES OR BOARD POLICIES THAT, UM, LIMIT HOW WE CAN SORT OF MOVE THAT MONEY AROUND OTHER THAN, UM, YOU KNOW, ITS, ITS GRANTS.

I'M UNDERSTANDING IF IT'S GRANT FUNDED, OBVIOUSLY WE CANNOT MOVE THAT AROUND, BUT IS THERE OTHER FLEXIBILITY THERE? FLEXIBILITY IN MOVING OUR GENERAL FUND MONEY AROUND? IS THAT THE QUESTION? I'M SORRY.

THE THREE BUDGET CODES THAT I HAVE BEEN BRINGING UP, SO MOVING SOME OF OUR EXPENSES AROUND THERE.

SO THOSE BUDGET CODES ARE SPECIFIC TO A RESPECTIVE FUNDING SOURCE.

SO FOR EXAMPLE, IN THE SLIDE THAT, UH, LAUREN HAD PRESENTED ABOUT THE HEAD START BUDGET THAT SHOWED THE AMOUNT OF THE GRANT AWARD FOR THE 24 25 YEAR, IT SHOWED THE BUDGETED EXPENDITURE CATEGORIES THAT WERE TIED TO THAT GRANT.

SO IF IT WAS 38 MILLION, WE BUDGETED THAT AMOUNT IN THOSE CATEGORIES, AND THEN THOSE BUDGET CATEGORIES WERE SPECIFIC TO THAT FUNDING SOURCE.

SO WHEN WE LOOK AT OUR RESTRICTED AND UNRESTRICTED FUNDING SOURCES, THEY'RE COMBINED.

SO IT'S A COMBINATION OF ALL OF OUR FUNDING SOURCES, WHICH WE HAVE HUNDREDS OF RESOURCES THAT WE HAVE ALLOCATED FUNDING FOR SPECIFIED PURPOSES.

SO IT'S A, IT'S A, IT'S A COMBINATION OF ALL OF OUR FUNDING IN OUR COUNTY SCHOOL SERVICE FUNDS.

I MEAN, I APPRECIATE THAT, BUT AGAIN, I, I DO THINK I WOULD LOVE TO GET A REPORT ON WHAT EXACTLY WE'RE SPENDING OUR MONEY ON IN THOSE CATEGORIES.

AND YOU KNOW, I WILL REITERATE THAT WE'VE RECEIVED QUITE A BIT OF PUBLIC COMMENT JUST FOR THOSE THREE.

SO, UM, I DON'T, I DON'T THINK THAT A REPORT WOULD, WOULD HURT.

UM, AND I ALSO WANNA ASK, UH, DO WE HAVE ANY CONTRACTS THAT RENEW AUTOMATICALLY? UM, BECAUSE MY OTHER QUESTION WAS GONNA BE LIKE, CAN WE PAUSE SOME OF THAT OR RENEGOTIATE? I JUST AM WONDERING IF WE HAVE ANY CONTRACTS THAT RENEW AUTOMATICALLY OR HAVE WE BEEN LOOKING THAT AT THAT AT ALL? WHEN THE BUDGETS ARE BUILT, WE HAVE TO HAVE FUNDING ALLOCATED AND AVAILABLE TO PROVIDE OR SUPPORT THAT EXPENDITURE.

SO WE DON'T TYPICALLY DO AUTORENEW CONTRACTS.

UM, SO AS WE'RE GOING THROUGH BUDGET DEVELOPMENT NOW, WE WORK WITH EACH RESPECTIVE PROGRAM AND THE AVAILABLE FUNDING SOURCES.

THEY HAVE TO ENSURE THAT ONE, THEY HAVE AVAILABLE FUNDING AND TWO, WHATEVER SERVICE OR SUPPLIER CONTRACTS THAT THEY MAY ENTER INTO, THEY HAVE TO HAVE FUNDING AND THE FUNDING HAS TO BE ALLOWABLE FOR THAT USE.

SO IT'S A CASE BY CASE PROGRAM BY PROGRAM BASIS AND IT VARIES AND FLUCTUATES BY YEAR, DEPENDING ON NEED OF PROGRAM AND OR SERVICE AND OR DELIVERABLE FOR EACH RESPECTIVE RESTRICTED GRANT OR CONTRACT FUNDING SOURCE.

AND THEN I THINK MY LAST QUESTION, AND YOU DID GO INTO THIS, UM, I I BELIEVE AT OUR LAST BOARD MEETING, BUT JUST TO CLARIFY, 'CAUSE I'VE BEEN GETTING MANY QUESTIONS ABOUT THIS IS THE BALANCE OF OUR HEAD START AWARD, UM, IS IT CURRENTLY BUDGETED OR, UM, EVEN IF, UM, IF YOU COULD JUST GIVE CLARITY ON THAT, THAT WOULD BE GREAT.

'CAUSE I KNOW WE HAVE, UM, YOU HAD MENTIONED, OR NOT YOU, SORRY, ASSISTANT SUPERINTENDENT GOMEZ, BUT I THINK THAT WAS DR. LEE WHO'D MENTIONED, UM, OUR HOW HEADSTART IS INCORPORATED INTO THE BUDGET IN TERMS OF THE ROLLOVER.

SO YOU'RE REFERENCING THE, UH, THE PREVIOUS ACTION ITEM FROM THE LAST BOARD MEETING, UM, WHERE HEAD START WAS REQUESTING THE APPROVAL TO CARRY OVER $2 MILLION FROM THE CURRENT YEAR BUDGET? YEAH.

LIKE HOW IS THAT REFLECTED IN OUR BUDGET CURRENTLY? SO WE HAVE OUR ANNUAL BUDGET FOR HEAD START.

WE'RE NOT THE, THE PROGRAM MAY NOT EXPEND ALL OF THE DOLLARS BY THE END OF THE YEAR.

RIGHT NOW WE'RE STILL BUDGETING BASED ON, UH, THE CURRENT PLANS.

AND THE CURRENT REQUEST IS TO CARRY OVER $2 MILLION THAT ARE ALREADY CAPTURED IN OUR BUDGET THAT WE WOULD POTENTIALLY BE RETURNING TO THE FEDS.

BUT THAT REQUEST WAS SUBSEQUENT TO THE SECOND INTERIM REPORT IF MEMORY SERVES ME CORRECT.

FOR THE PREVIOUS REPORTING PERIOD, THE 2324 YEAR, BECAUSE WE HAVEN'T CLOSED 24 25 YET.

AND I BELIEVE THAT WAS

[02:45:01]

SO I'LL HAVE TO GO BACK AND LOOK.

I DON'T KNOW OFF THE TOP OF MY HEAD, BUT CARRYOVER REQUEST WOULD BE ANY UNSPENT UNEARNED REVENUE FROM THAT GRANT AWARD THAT WE WOULD HAVE TO RE REQUEST TO CARRY OVER.

AND THEN THAT IS VERY MINIMAL.

IT'S ONE TIME EXPENDITURES THAT WE CAN USE 'EM FOR, BUT AS FAR AS HOW WE BUDGETED THIS YEAR, IT WOULD'VE BEEN THE WHOLE GRANT AWARD FOR 24 25.

WELL, I WILL ADD THAT TO THE LIST OF QUESTIONS I'M EMAILING.

UM, YOU KNOW, BECAUSE, UM, YOU KNOW, IF THE MONEY MIGHT NOT ULTIMATELY BE SPENT OR CLAIMED, THAT'S, IT'S JUST GOOD TO GIVE CLARITY ON THAT.

BUT I THINK FOR NOW, THOSE ARE MY QUESTIONS AND THANK YOU SO MUCH AGAIN FOR, UM, ANSWERING ALL MY QUESTIONS IN WRITING AND APPRECIATE THAT.

OH, I FORGOT TO ASK EARLIER, BUT I'M ASSUMING, I DON'T KNOW, I'LL ASK, UH, IS, ARE THERE ANY PUBLIC COMMENTS ON THIS ITEM? NO, THERE ARE NOT ANY PUBLIC COMMENTS.

THANK YOU TRUSTEES.

ANY OTHER QUESTIONS OR COMMENTS? WELL, WITH THAT, THANK YOU VERY MUCH TO OUR TEAM FOR ALL OF THE PRESENTATION INFORMATION, ANSWERING ALL THE QUESTIONS.

APPRECIATE YOUR TIME AND EFFORTS.

THIS CONCLUDES OUR STUDY SESSION.

THE NEXT SANTA CLARA COUNTY BOARD OF EDUCATION REGULAR MEETING IS SCHEDULED FOR JUNE 11TH AT 5:00 PM MAY I HAVE A MOTION TO ADJOURN MOTION FROM VICE PRESIDENT SEAN? IS THERE A SECOND? SECOND.

SECOND FROM TRUSTEE SPICER.

TRUSTEES, PLEASE VOTE IN BOARD DOCS IF YOU HAVEN'T LOGGED OUT ALREADY.

OTHERWISE I'LL TAKE A VERBAL VERBAL.

I FROM TRUSTEE PACHECO.

TRUSTEE SHANAN, DID YOU WANNA CAST A VERBAL VOTE? MIGHT HAVE.

SORRY, I WAS ON MUTE.

I'M AN I OKAY.

A VERBAL I FROM TRUSTEE SHANAN.

TRUSTEE LAURIE, DO YOU WANNA GIVE A VERBAL I A VERBAL EYE FROM TRUSTEE LAURIE? AND THAT MOTION CARRIES UNANIMOUSLY.