that was set in the charter is very rigorous. however, the threshold to the schools is not nearly as rigorous. in fact, schools don't even need to have a cut from their allocation from the state in order to draw from the rainy day reserve. they just have to be below a formula that specifies what the cost of living adjustment should be. the cost of living adjustment for the school is rather generous compared to the c.p.i., for example, consumer price index. so the schools have been able to withdraw from the rainy day reserve 25% of the balance in the reserve. so the first year was $19 million withdrawal and $25, 6 and and then we're budgeting $6 million in next year's budget and $5 million in the subsequent year's budget from the rainy day reserve and in fact the school district will deplete the reserve. don't think the city will have funding from that source.

>> miss zmuda from the rainy day reserve for the school district to access the 25% of what's remaining in the fund, wasn't it tied to significant layoffs or there's some language, as i recall, so you sewed cola but is there some language that ties it to lay jotches in the -- layoffs in the school system? >> it does require that we measure what the per-pupil spending is, and we look at that for the future and it is based on a cost of living adjustment that is established by the state that is applicable only to schools. the school district does not have to have layoffs for the school to withdraw from the reserve, although i know there have been layoffs and certainly many pink slips over the years. so the total allocation to the schools over time, you see on

the bottom line here, 44 million this year growing to 46 in the next two years. even though we have pulled the trigger, we're still increasing allocation because of the growth of revenue. and the total over the nine-year period is $340 million. i'm available to answer any question that's you might have. about either the program. we did recommend to the board's budget committee last week to approve the plan, which includes the allocation of the public education enrichment fund and then the budget also included the rainy day reserve appropriation to the schools. and just to note that the school district has been really very cooperative and helpful and diligent in establishing performance measures so that we can see what the success has been from the funds.

and again, we will conduct an analysis beginning next year to review the good work that the school has done. supervisor mar: can i ask you the process for the roughly $40 million deferred funds that i feel is an obligation to pay to the school district and looks like in projections it's going to be close to $62 million by 20 15 -- 2015. can you talk about what's the process to pay that deferred amount to the school district? >> if the program is not renewed, that is if either the city chooses not to put it on the ballot or if it's put blonlt and fails, then we are required to pay that back within two years. after the end of the program. if the program is renewed, this deferral could essentially continue for the life of the

program or could even be forgiven in the next bond -- excuse me, in the next ballot issue. so we are -- our planning or expectations is the program will be renewed when the program comes up again. >> you don't see it as an obligation -- deferred amount an obligation to pay to the school system if voters reauthorize it? because it sure feels like when i supported the 2004 campaign that the third, third -- expectation was that was an obligation that we as voters wanted to go to the schools and preschool for sit on as well. you're say fg it's reauthorized, there's no obligation to pay that money that voters authorize? >> an obligation is probably a

softer term. there's no requirement. we may feel there is an obligation but there's no requirement until the program ends that those funds be repaid. supervisor mar: ok. that's helpful to know. i sure feel like it's an obligation that should be repaid to the kids and schools, especially $40 million over the past 4 years when they cut to the bone like crazy and if the state's not stepping up, what better time than now to support our schools when they're reducing the school year and many, many students won't be graduating without seven period support, for example. but i understand what you're i saing. but thank you so much, miss zmuda. >> i'm happen dwroy answer questions. supervisor mar: don't see any other questions. let's go back to the public comment. i also wanted to call up michelle parker, president of the second district p.t.a. and followed by dennis kelly, president of united educators.

>> good afternoon, appreciate being able to be here. as we've already discussed, the governor signed a budget last night and he did have some line item veto that's affected childcare as well as different pieces of the education budget. in our whole city and school are hurting, talked about this. don't need to go into it any further. but i did want to bring up a few recent spending proposals with the city. there's a current proposal for $750,000 to parks for new gardeners. which is great. these proposals are what we need. they've also approved six training academies for police and fire. again, really needed. something we haven't met in our city charter. these are good things. the point in bringing these up, with these type of things it's easy to see the immediate impact of the investment. you can see safer streets. can you immediately see no graffiti in parks. with education, we're always go to have some who rise to the top and able to succeed despite the funding we put in front of them

and there are lots who are not. and i think in our city we need to be different and we have been different. we're so lucky and fortunate that we have voters who have supported initiatives over the years. we need to continue doing that and be clear that this won't happen on our watch. we will not let our kids fall through the cracks despite what's happening with the state. and so we need to come up with a contingency plan if these initiatives don't pass in november as a combined community between city and school district. i think it's time to be creative taxes and bond mersures and things we use but hotel taxes and increased sales tax or utility taxes, other kinds of things that we can look at. to be creative and continue, of course, for next november because it's too late for this coming november. next november and also ton support prop h reauthorization

in the children's fund the following year. that's what i wanted to share today and hope we can work together to make sure if these initiatives fail especially that we can do something together to take care of our own. thanks. supervisor mar: thank you for our leadership with the p.t.a. as well. next speaker is dennis kelly from the uning ted educators of san francisco. >> thank you very much. and especially thank you supervisor mar for bringing this up. i think when the previous speaker spoke about concern about obligation, i think that's the kind of language we in the schools hear all the time from people. you realize the state does not talk about how much they have cut from education. it's around $20 billion in the last five years but they will only consider it a cut if they actually put that money in your pocket and reach back in and took it out. when we talk about underfunding

of schools and the way schools have been structures to reserve money from the state, the state legislative office does not consider that cut. and that is a real problem just as the talk about obligation is a real problem. if you're going to build something in the schools, you must build it on some sort of stable base. so if there's money that is deferred because things like that happen, that money needs to be owned up to. it needs to be contributed then at a later time. i'm very pleased that the $43 million in unanticipated funds has brought people forward here to talk about this. when nancy talked about the city fans and showed you the slide -- by the way, nancy's leading us at the end of this week to-to-go to washington. we won't have nancy wamack to kick around anymore. i think we should take a moment to appreciate the work he's done in the district the past several

years and thank her for that. when you talk about the slides she showed you and you see there's a $46 million ending balance with the school district last year, $40 million of that was contributed by the teachers and parents in the school district. and so literally the school district was able to stay afloat on the backs of the teachers and parents. i don't think that's a wise way to run a business. i don't think that's a wise way to run a city. i think it's a terrible way to have to run a school district. we talk about furlough days as a number people talked about, we are adamantly opposed to furlough days. i'm president of the union but for 35 years i was a classroom teacher. furlough days are days we have taken away from students. you cannot give them back to them. you can never give them back to them. and so we are working in the current budget contract talks to try to avoid furlough days any way we can.

that means just as prop h money was deferred, we are looking to using prop a money to supplement what's going into the payoff deficit now instead of going to furlough days. now, the city rainy day fun i think you need to appreciate one of the factors about city rainy day fund. two ways you get rainy day fund moved over from the city to the school district. that is if there's a substantial cut in the per-pupil allocation from the state such as anticipated if the initiatives do not pass in the fall. or if there's a significant number of layoffs. at this point having not had that cut previously, we have had the school district have to budget for layoffs. they budget to get the rainy day money, which means they have to budget for layoffs every year. even ghoting rainy though

getting rainy day funds means they rescind layoffs. that means a total destabilization of schools as teachers receive warning notices in march, termination in may and gradually brought back into the school district. any money the city can find to move to the school district should be used to eliminate the possibility of furlough days and work for the children by limiting class size so it does not become unreasonable and students can learn. there are many new programs we need and many add-ons we would love to have. those have to come after we go through survival. we must survive first. again, i appreciate very much you're having this hearing. i know you're taking this seriously and we very much appreciate that too. thank you. p supervisor mar: thank you. next speakers are christina from coleman advocates and chelsea boiler from coleman advocates.

>> good afternoon, supervisors and commissionerses. i'm chelsea, program advocate for children and youth. we are lucky to be living in a city like san francisco where there are significant and intentional resources given to the school district from the city and city's taxpayers. this is taken the form of prop h, public education enrichment fund, rainy day fund as well as additional funds including money that the mayor authorized for last summer season current summer to provide supper school, that had been cut by the state. we need those funds in order to ensure high school students, all students in san francisco can be successful. and while we are in a much better position than many districts, we're not facing school closures now. we are still facing ongoing

investment chipping away at the safety net and public schools needed for all students to be successful and to address the racial achievement and opportunity gap. prop h has been pulled year after year deferring millions in dollars of payments to the school district for some unknown future date. and there are over 50,000 children in san francisco public schools drastically underfunded system. too many are being set up for failure without the necessary supports is, like opportunities for credit recovery, which has come up multiple times already. which could look like a targeted seventh period for students who need it with teacher present, who could directly support them. in general we just want to thank supervisor eric mar, jane kim, all of the leadership of the board of education, board of supervisors to prioritize this hearing because we would absolutely support any and all efforts to identify additional resources from the city of san francisco to support our

schools. and ultimately our students. thank you. supervisor mar: thank you. christina? >> good afternoon, supervisors and commissioners. i'm the economic justice campaign organizer at coleman advocates. and i'm here to speak on behalf of our parent and youth members. in 2009, coleman parent and youth members supported the board of education passing the a through g graduation requirement. it ensures all students graduate college and career ready, taking us one step close tore closing the achievement gap here in san francisco. unfortunately adequate additional funds to support this transition for our students, particularly those african-american and latino students attending lois-performing schools is not identified. because of this astonishing numbers of failing students. two months ago coleman members presented at this committee and spoken for part of funds for

in-school credit options for students failing a through g classes. as it stands approximately 20% of graduating classes of 2014 and 2015 are not on track to graduating, meaning they failed one or more a through g classes. 20%. this means one in five over incoming sophomores and juniors will not graduate. one in five students, these are future business owners, doctors, tech company entrepreneurs, future city commissioners and futer city supervisors and they will not be graduating. this is unacceptable in a world class city such as san francisco whose budget increased by $500 million this year alone. on tuesday board of education identified an additional $500,000, which includes $200,000 from dcyf for credit recovery options and we want to thank the board of education for this leadership. $500,000 is a step in the right direction but sadly not nearly enough in the face of the number of students failing.

we want to acknowledge supervisor mar and all supervisors present for your leadership and pursuing this conversation to identify additional revenue for city students and we believe together we can ensure the ultimate success of all of our students. thank you. supervisor mar: i will call the next couple of speakers f anyone else would like to speak, please come forward. chris carey, usf teacher and heather murdoch. >> i'm chris carey. high schoolteacher at 6 through 12 school, small public school with 400 students. just give you a background at our school. we're about 69% free and reduced lunch. 80% african-american lan tino students . when we talk about high-need schools and achievement gaps, those are the students myself minute colleagues serve.

the budget cuts, i'm faith year teacher. been drastic over my five years. and we've seen loss of teachers every single year. i wanted to give three examples of what those mean and restoration of funds such as you have been talking about, supervisor mar, can mean for our school and other schools in the district. first is drastic cuts to programming. schools at international relations focus school so above and beyond the three years of social science requirements, we require five including an international relations class and an ethnics study class that gets students to think about their lives outside of their city block and outside of the city. this year we were thinking about cut both of those programs, which were sort of the hall farc of our school. able to save them but it came at the cost of other things, which are second point of programming. in the last five years, we cut our band program. we've cut our studio art

program. we will be offering only half the middle school p.e. that we've been able to offer in the past. this year we will have two ee lech tives for high schools. computer arts and dance. we want to be a school that offers our a through g requirements and gets students ready for college but athis point that's all we're able to do. students need much more than the core classes. they need chance to explore things in their interest beyond those things so they're excited to be at school. second thing these budget cuts have meant for our school is massive stat turnover. we're hard-to-staff school, which means that a lot of our teachers are younger teachers, just out of program who are passionate about their craft. that means they're at the bottom of the seniority system. so every year the pink slip process, which mr. kelly was talking about, means that there's sathe portion of our teachers who spend two to three months in limb bofere year.

i got to experience my first year without a pink slip. a lot of those teachers go elsewhere because they need a job and can't wait until june, july, august to get their job back. what that means is this is the year we will have 33% turnover at our school. that's absurd. supervisor mar: how much teachers at i.s.a.? >> we have about 36 so we're losing 10 and 12. that's also related to loss in q.e.i. funding but not all of the teachers had to leave. but they chose to leave because but chose to leave because of instability nunding. lastly, coleman advocates, people talking about this, we need this funding to meet requirements for u.c. eligibility and also for closing the achievement gap.

most need remediation and extra help meeting goals, rigorous goals that the district set and meaningful goals district has set. but we're not able to do that with the staffing that we currently have -- well, we are -- i shouldn't say we're not able to. we are professionals and will continue to do our best to help our students meet those goals. certainly with extra funding and extra staffing that will be much more possible. i thank you and urge you to do whatever can you to get that extra funding. supervisor mar: thank you, mr. carey. next speaker, dennis mckenzie and -- >> hi. i'm heather murdoch. i did want to say i recognize the very difficult budget situation at school districts across california are facing. i'm a strong believer in public education and for our education system t. does need properly

funded. given, that it's surprising the district is deliberately walking away from state money by not ed keg transitional kindergarten children. the number of children who were in the mix in january were 400. that number today dropped to 190. a very rough calculation said a district lost over a million in state funning. just a.d.a. doesn't take into account english language learner funds or extra funding that come when's you enroll 200 children. that number might increase any more. district is asking for funds from the city. i'm not about to say the city shouldn't do that because i think the district needs the funds. i did want to point ut back drop is the district has for some reason chosen not to educate children and chosen to walk away from money at the same time. it's shocking to me they would be standing here asking for money with this cavalier disregard for both educating children and funds they could be getting from the state of california if they chose to ed

gate the children. -- educate the children. thank you. supervisor mar: thank you. next speaker and i see todd david as well. >> thank you. i'm todd david. i'm cofounder of the san francisco parent political action committee and i would like to thank supervise are mar for holding these hearings. i think it's really important. a lot of parents had questions about the difference between six-month budget, nine month and how that affected prop h. it was help to to get clarification around that. thank you. there's a lot of talk at city hall in san francisco about keeping families in san francisco. we say it's a priority. very small population of families in the city. i feel like these hearings is where the rubber hits the road. at the end of the day, we have limited resources and we have to decide how we're going to use them. and there's many competing very

well deserving groups saying, a little bit of extra money now. and wloo what do we do with that? it's a shame but at the end of the day, there's only a limited amount of money. i just want to point out up with of the ways $3.5 million is another day at school. $3.5 million educates 56,000 children. it pays one more day teachers that have had their positions cut. and it saves parents from figuring out another day of childcare. it seppeds a message san francisco really values families here. and as a final note, i want to point out 100% of the local measures that have been voted on to fund schools passed. 100%. not one failed. there's a very chlor message

from the constituency of san francisco that we value the public schools. if there is extra money and given back to the district, i hope it will be done. thank you very much. appreciate it. >> thank you very much. supervisor mar: next speaker, mr. mckenzie. >> thank you, commissioners and supervisors. i'm dennis mckenzie. i have been teaching in san francisco high schools about 10 years and also been writing proposals dealing with education reform for over 20 years. i don't to repeat the state of california's lack of support for our public schools. i want to suggest today i provided the city a number of proposals the last six months dealing with golden state warriors poem basketball arena.

i'm asking today for this body to invite the chamber of commerce to be a partner with this issue of providing education for our kids. i teach in the classrooms and it's discussed over and over how critical it is with all of the budget cuts. when you're in a classroom in high school, 30, 40, 45 kids in a classroom. cuts have gone on beyond reason. i would suggest, like i said, i believe this body, city as you see exploring new revenue and how do you support the schools, i'm asking this body, supervisors, mayor, board of education to invite chamber of congress in this collaborative effort. i also work with the wshes. i'm proposing a high school classroom as part of that arena. i respectfully ask the warriors become a part of this community as a will. i'm hopeful and trust they will, providing a classroom inside at rinna would give -- the arena

would give kids an incentive for practical real world experience and understanding and knowledge and business community i believe needs to support this as well. thank you. supervisor mar: thank you, mr. mckenzie. ly mention that to rick well, president of the warriors and new team trying to build their stadium in the city. i think that's a good recommendation. thank you. >> good afternoon, school board. kentucky s.f. budget rain keeps falling down another city another town that i went walking through with the budget rain in my shoes searching for the school budget you in the cold kentucky budget rain in the cold kentucky budget rain bring some change, city school

change and you will be glad they came ♪ ♪ we need you school budget now more than words can say we need you now now and every day and every way we budget need you need you now. ♪ supervisor mar: thank you, mr. paulson. is there anyone who else would like to speak? seeing none, public comment closed. i would like to ask for comments, questions from clige colleagues. nancy, thank you very much for the service to children and families in the city and school district and best of luck in d.c. as well. i know will you do incredible things for people in d.c. as you have done for our city. thank you very much. colleagues, any questions or

comments? >> thank you, supervisor mar. supervisor mar, thank you for the leadership to bring this forward to this hearing today to discuss the budget whoas also of the san francisco unified school district and how city partners helped us out of a very deep hole and continue to help keep us afloat and offer services to our students. i think another thing nancy wamack could maybe refresh us on is maybe that if the november ballot measures do not pass, we the governor has talked about additional school days cut. nancy, would you like to elaborate on that number, please? >> sure, commissioner. in the final version of the budget they