continue, please. thank you. >> ok. some other options that we are exploring, and a lot of this actually rests on negotiations with our collective bargaining units, and these would be reducing our ap prep allocation time. this would impact our high schools, primarily. increasing our allocated class sizes, and just as a note, the majority of school districts and -- in california are actually going to much larger class sizes. reducing -- cutting transportation again. we may even explore the possibility of cutting some

special education transportation, although that is not really as easy as it sounds. another potential -- another option is school closure and reductions for some of the items that we have already identified for potential cuts. some revenue-generating efforts we have put on the table, looking at our real estate leases, maximizing our revenue through leasing our real estate, having another local tax, going out for grants and donations, maximizing our medical reimbursement program, potential draw on the rainy day reserves in 2012-2013, and really pushing to increase -- reduce our truancy rates and increase our

attendance rate so that the district brings in more money, more revenue. our schools have finished their budgets. we were working under the assumption that the $349 was a real cut, and schools were asked to submit their budgets based on a drastically reduced allocation. if things could get worse, we will need to adjust our assumptions accordingly. what else can we do? legislative advocacy, no suspension pledge, a joint advocacy without core network of large districts, seek assistance from the city's rainy day reserve, and we really need to acknowledge all the support and

all the efforts that have been critical to the unified school district. thanks to the public education in richmond fund, the teacher and education act, the city's rainy day reserve, we have been able to maintain more services than most comparable school districts in california. the next few slides, obviously -- this is a draft of our budgeting timeline. we will hold community meetings this next week and the week after. a revision comes out on may 15 -- sorry, in mid-may. we have notices for staff and other employees. between may and june, we will be working on a budget that we can

then recommend to the board. the board of education will adopt the school district budget at the meeting on june 28. the next slide shows you how deep the cuts have run over the last several years. the flat base line, nothing changes, no suspension of proposition 98. it is a blue line. it depicts what an average unified school district would have received. if the state had just maintain funding. the green line at the bottom is the reality. it is what school districts, k- 12 education has received, through either suspension of proposition 98 or through cuts -- or non-funding of colette and additional reductions.

in 2010-2011, if you notice, there is an area -- an arrow that goes in the right direction. this is -- represents the deficit with the $349 per ada cut. this is taking a little time to load. ok, i guess this is not -- this graph, if it shows up, basically shows over the last -- i don't know, maybe 40 or 50 years, it looks like -- how much california schools have been underfunded by compared to the

rest of the u.s. guide to acronyms. appendix c is a broad overview of the school district's budget. the big pie chart shows the different proportions of our general fund. the restricted, which is all of state and federal and local programs, and we have other funds like the cafeteria fund -- sorry, the student nutrition fund, the child development fund, healthy children's fund, enterprise fund, kow. the last slide is an overview of our unrestricted general fund expenditures and budget reductions. as you can see, the largest chunk is school site allocations. we have sections for the rest of

the budget. this is the unrestricted general fund budget. that is the end of my little presentation, and i apologize if i took longer than i needed to. any questions? >> we have a few questions. commissioner norton first. commissioner norton: if it was not addressing the first time, it certainly was the sun appeared i wanted to make two comments, the first being that we are in a much better situation than a lot of other districts across california because of the help that we have gotten from the city, and i think it is really important to point that out, that the rainy day fund access and the proposition h fund had been crucial to maintaining where we are now, so we are grateful for that. the other thing i wanted to say is that the california teachers association and our local

teachers union are planning a week of action around the budget situation, so they 9-13, there will be rallies in sacramento, and rallies and events locally every day of that week -- may 9- 13. i think we can still advocate to make the situation better. the solutions are not easy, but i think the people rise up and said that this is unacceptable, because it is unacceptable, we have a shot that may be moving -- may be moving a few votes in the legislature -- maybe moving a few votes in the legislature. u and i uesf -- and i know that uesf is going to bring a bus. their plans are still very fluid, but on their website, or on the cta web site, there will

be more information for people. >> thank you. supervisor chu: thank you for your presentation. just a couple of questions -- the numbers that i saw here with regard to the ada reductions, there were three scenarios. one was a flat situation where it would be a reduction of $19 per ada. the second was the $330, and you laid out another one, which is if it wasn't all cuts budget, potentially $825. just wondering what the $330 [inaudible] what assumption is that tied to? >> that is what -- the failure

to extend the temporary taxes -- let's say the temporary tax extension would have brought in additional revenue to the state of $3.4 million. -- billion dollars. of which, $2.1 billion would have been to fund k-12 education. failure of that tax extension, the $2.1 billion shortfall now translates into a cut of $330 per ada for all school districts. >> the $330 is basically the interpretation of losing the $2.1 billion across the state and education. ok, and the $825 reduction, is that assuming that all of the cuts are in education? >> that will be assuming an all cuts budget. education would also be cut by anything from $4 billion to $5 billion. supervisor chu: my next question

has to do with the current multi-year baseline projection. i say that if we saw flat funding -- in the total and restricted revenue that shows about -- i guess, $381.9 million in the second interim budget, and then the next year out, it's as $358 million, this is based on, i guess, the $330 reduction? >> this is -- although the major chunk of this total is the ada- generated funding, this also includes funding from state categorical programs and federal programs. that does incorporate the $330 reduction. >> and then a quick clarification, with a 2% reserve level the commissioner had spoken about earlier, what is

that based off of? based on expenditures? >> it is based on total expenditures and other of go. >> what is your current required to% -- 2% reserve level? >> it is around $11 million. >> currently, the required reserve level is about $11 million, if i read your charts right, you have got a fund balance beginning -- or ending at least in last year of almost $40 million. at the end of this year, you expect to have a fund balance of $45.9 million? so that does exceed your percentage, which is a good thing, so you have that to weather the storm. i'm trying to understand, has it been a collective policy on the part of the board to set aside money in the case that you have a dire budget situation? >> the ending fund balance that we are projecting for the current year, when you net out

our 2% reserve and other designations, we have -- we would have a balance of $29.1 million, which we fortunately -- it does help in easing some of the reductions for next year, but as you can see, it does not really go beyond the first year. >> so it sounds like, at the end of this year, at the end of this fiscal year, the school district is expecting to have an ending fund balance of 45.9, which is better than ours. hours for the city will be $3 million, at the end of this year, our general fund reserve, but after you net out what is required to stay in a 42% level among other things, the amount

of money you have to program is 29.1 for the next year. >> right. >> ok. finally, on the other options, you have laid out on slide 11, you talk about different revenue-generating efforts. one of the ones that was interesting to me was the -- two of them were the real estate leases and medical recovery. i guess i do not know what it would be. is that for medical services that the school district provides? >> eligible students that are reimbursable. them and medical services currently provided on the school site for individuals who are eligible. we currently do not build? >> we bill, but there's a lot of potential output to maximize it further. >> that is great. for the real-estate leases, we have the same issue in the city,

which is we have party across the city, and there are sometimes opportunities to leave it to certain folks, and sometimes, it is a conscious effort to say yes or no to particular vendors or service providers. do you think that will provide any relief in the short term, or will it be the fact that there are a lot of facilities that would need a lot of work and repair before it actually could be rented? >> i have not really been very closely involved in this period could commissioner norton address that? >> i did not think there is anything immediate that we have in the hopper, but there are certain properties that always come up. it is actually right adjacent to the campus, so that is one that we do not have a use for. it needs a tremendous amount of work, but if we could get sf

state to buy it, that would be good for us, although i do not know if they have the money to do it. there are options like that that we have talked about for a long time. i do not think there is anything that will provide as immediate relief in the next couple of years. >> thank you. >> i think that there is 3 that i would cite. there's also two other properties, 1950 mission, and the other is 1155 page street. i would echo what commissioner norton pointed out, which is i would not see anything immediately happening, but we are actively looking at those properties for development. and moving forward with an rfp sometime in the near future. i'm not sure the exact timing, but those big ones some point out. we want to repeat what the

superintendent has said, which is that we are reluctant to put anything out there at fire sale prices. i think that considering all the options, whether it be a sale or a lease, and then also keeping in mind that we do not really know what the future is going to hold in terms of enrollment. five years ago, we would not have said that we were still expecting a decrease in, and we would never have said we would be opening a kindergarten, and lo and behold, we did. things change very quickly, so there is a real reluctance to dispose of any property without very careful consideration. >> right, and just to clarify, my point was not to get rid of property to sell it. it was really if there are shorter term leases or other opportunities that were available, but even that might be a challenge if the facility needs to be brought to a level where it would be leasable. >> and if i may, not only are those properties not develop, but even estimated on the ground lease, like 1950 mission, the

proposal would be for about $500,000 we would get annually for our ground lease. that is $500,000, which is nowhere near helping us. >> i have one question that relates to this particular topic. i also see as a revenue- generating effort to increase attendance rate. i wonder -- what is the strategy around increasing attendance rate? >> part of our reorganization into our area zone has been also to focus on having a full-time attendance liaison community coordinator assigned with each of our areas zones.

they have come on board this year, maybe one or two vacancies, but they pretty much will be on board, and that is their mission, to call every day, make every effort possible, work with school principals to make sure that they are falling through with the kids' attendance and reaching out to the community in terms of excused absences being not acceptable. other than, besides the child's educational interests in mind, there is this other fallout of not being able to capture the revenue for any child that is not present in the classroom. >> how much money are we losing on an annual basis when a student is not in class? >> we have averaged about 95% or leased in the last three years that i can recollect, and even a

1% by attendance -- both -- bump in attendance translates to about $2 million or $3 million roughly. if we increased by 1%, that would be an increase of 500 ada, and roughly with funding of $500 per, that is -- quickly, somebody, do the math. it is about -- i'm sorry, what? >> here is a calculated. $4,500 multiplied by 500.

in that ballpark. >> where are we with our attendance? 65%? 95, and site. >> 95% on average. >> ok, so we need to tackle and bring in that outstanding 5%, the outstanding 5% could be somewhere between -- $10 million or $15 million? >> 1% is about $2 million. 5% would be close to $10 million, correct. >> thank you. >> just add to that, i just actually went out to one of the superintendent zones and had a meeting with the attendance liaison there, and she is finding great success because she not only works with the

executive in the superintendent zone, she is from the community and knows the community, and that is one of the caveat is we have asked, and i think they are actually trying to get funding for her to work over the summer time where parents are less stressed about the day-to-day getting to the child to school but can be more amenable to a conversation about how we can help get the child to school, so just on that particular topic. i wanted to mention that, but really, i wanted to address my comments are around the uesf and advocacy and be very clear -- it is not our local legislators who are at fault. that advocate incredibly long andadvocate, long and hard around educational issues. it is those of us who are not in the area with the understanding

-- we know how important to the committee legislation as. if i was to say something -- it would be to those listening, and watching in the audience. talk to your relatives and friends, in california, to speak to the local legislators. those people have not come up through education, in their legislative and political past, did not get this. they did not have the tax extensions. the burden all across the state of california, they throw up their hands. i cannot understand how this could possibly be. i ask you to go to your relatives and friends, and to

address the legislators. address the people who are there. did this the other way though -- the with the other legislators to. >> another any other comments? >> i appreciate you have done, with the hard work of overseeing the budget, with a year or so of difficulty. it makes me so angry to see our children being shortchanged this way. at the state level and the federal level as well. we are in three wars, and the $40 billion that was cut from the national budget, there was no cut military spending, no

discussion about getting out of afghanistan, and who knows what will happen with india, and the other bases that we have all around the world. this is where the state of our society is. we are not caring about children and we need to. i will be supporting barack obama for his reelection. he came to san francisco a few weeks ago, and he left here about $10 million richer than when he got here. we have money here and this is going to the political process that is not able to bring the money down to the local level. i have children and a lot of the people in this room have children, and this is just mind- boggling.

we have to live with this. my hat goes off to all of you, who are struggling with this. it is very difficult to feel hopeful, but we are doing this for our children. >> if i may respond. i appreciate you sending this. this really struck a chord with me about hope. the very first time in the budget meeting, it was -- hope is not a strategy. we cannot depend on us. we have to speak with the vote, and i wanted to speak to that. >> thank you for such a lively

discussion and thank you for making this presentation. are there any members of the public who wish to make a comment? public comment is closed. can you read the other item on the agenda? >> that is everything. >> this meeting is adjourned. thank you all.