>> and that's what is calculated with the state and hopefully there is repayment of that gap. >> correct, supervisor. just a couple of other points that are pertinent to the item before you. in the spring of 2009, was when the board of education passed its a-g graduation requirements. you see in this context that was right before this precipitous decrease in the state's funding for schools. the board of ed passed the graduation requirements in may of 2009. the budget from the state for fy-09/10 had not yet been passed. and that occurred several months later. and the result of that budget, you see the significant decrease in funding. that's one point to note.

and as the superintendent mentioned in that fiscal year, 09-10, we did make reductions to close this gap. which we are abruptly faced with. many reductions across the budget, including credit recovery and summer school and evening school. that's the historical back drop for the situation we are in now. and you will hear from dr. schultz a lot of emerging strategies how we hope with the city's support to help the class of 2014, as many as possible to meet the a-g graduation requirements. supervisor chu asked that i address the issue of school direct -- district refer --

reserves. in the last the budget was $150 million. and that includes $6 million of required reserves. we have requirement for the positive certification from the state. of 2% of our total general fund expenditures. and we have certain other designated reserves for prepaid health care prem yiums. that's about $15 million. if we fall short of that we are subject to state intercession. and we meat -- met and exceeded that requirement. we have a structural deficit for the current fiscal year and the years 2013, 14, and that is $34

million each year. our projections is now that we will reduce that fund balance in the current year to about $26 million at the end of the current fiscal year. and next year that we will -- if we don't take very serious steps to reduce expenditures or increase revenues, that we will actually have a negative ending fund balance of $4 million. and considering that we must maintain a positive fund balance of $15 million, that will give us short fall. >> just to be clear your reserve is $50 million dollars and 15 i

required. and at the end of this year you expect to be at a level of $26 million. >> correct. >> what is the balance you used to plug your budget this year? the difference between the 50 million and the 26 million. you are using the reserve to balance. >> correct, drawing down reserves to reducing the fund balance by that amount. >> okay, and i guess the other question, it's clear in terms of summer school that was cut and evening school. those are areas where the school district decided to make cuts when you received cuts from the state. and it was mentioned that you moved from seventh period to sixth period issue and what was that related to? >> it wasn't a policy that we

applied uniformly to our schools. however, in our district we have still a fair degree of site-based decision making around how each school establishes its budgetary priorities. we allocate funds every year to each school and they have to make decisions about how they invest those funds. it had been the case in several schools that historically had been able to create a seventh period schedule during the day. each student taking six courses. and as the funding was diminished by the state. and we had to respond, as the district. we also had to reduce our site budgets to a certain extent.

in several cases as we limited the amount of discretion that individual school sites had in their budgets. several of them made reductions in their schedule. going from a seven-period day to a six-period day. not all schools had a seven-period day to begin with. but of those that did, they had to reduce to sixth period day. that's not something that we mandated but as they determined their budgetary priorities and try to reduce their budget, several did reduce to a six-period day. >> thank you. >> i believe that dr. schultz will give the details.

>> good afternoon, supervisors. thank you for having me here, having us here. i will talk today about the action steps we are taking both immediate. and also if there is any longer term systemic questions you have. in terms of the immediate needs around the class of 2014. that's the first class under the new requirements. the first step is to clearly define where the students were in making progress towards the new graduation requirements. and to define to help us with a plan to reach the students to see which ones a little off track. which ones are longer and what courses are needed. and within that also developed individual plans for students, community outreach and a plan for expanding opportunities for

students to earn those credits. and then we added in an accountability piece to make sure we are holding ourselves accountable to ourselves and the community. it becomes pretty complicated. and if use any terms that are sort of educationesque, interrupt me and ask for clarity. looking at students and seeing on track and off track and terms a-g and graduation requirements. there are a few things to understand, that our graduation policy is aligned with the university of california requirements. and they require that students pass all courses with "c" or better. our requirements are that they pass with "d" or better. along with a-g, we are required for graduation requirements such as p.e. and our own requirements

of college and career and health courses. when you look at students in high school you don't progress with age but by credits. no matter your age, you have to obtain credits. you don't become a 10th grader until you have 55 credits. and you don't graduate until you obtain 230. you can have credits but if they are not in a class with graduation requirements. you still won't graduate. if if you are missing what we call benchmark classes. core classes that are required for graduation. such as four years of english and two of math and sciences, etc., you will not graduate. so that context is important in terms of looking at our students and where they are towards

graduation. our first group of students are students on track. they are a current group of juniors. and we are doing this data on a junior class, and now we have run this on our current sophomores so we can track their progress as well. in our current juniors you should have 110 credits if you are on track. but you should met your benchmark courses. meaning two years of core english and math and science and social studies classes. if you have your credit but you are missing benchmarks. again you may appear to be junior by credit. but you are not on track for graduation. because you need to have those required courses. and that's the second category. and if you are off track, and a year or less behind in credits than where you should be entering high school. if you are moderately off track,

you are two years behind and severe is those in third year of high school but haven't completed what someone would expect after one year. if you look at the chart, you can see overall data. we made the chart in two ways. the one on the right is graduation requirement. where it says a-d, those are the grades. the students have met those requirements with a grade of a-d. and the chart on left if they made those a-c, those are uc eligible as opposed to graduating. the dark green are the students on track, 2,216. those students are current

juniors. they have 110 credits and they have met all of their benchmark classes. they have taken the classes we expect them to take on graduate on time. the next largest group of students, 1,119. in the light green area. those students have the credits but missing the courses required for graduation. that could be because they failed it or from another district. in general they are attending and achieving credits. but if they don't make up the benchmark courses, they won't graduate. and then the other categories where we have 7% of our students, 296. those students are one-year behind. and you see we have set targeted outcomes and goals for the students. but typically those students end up in our continuation schools.

but with opportunities to achieve credit recovery through evening school and dual enenrollment. they can graduate if they take advantage of multiple opportunities. and then the students in the last two categories who are very, very off track. and those are students who may in a ged program such as early morning studies or in gateway to college. or in another program to achieve post-secondary. we have all of these charts by ethnicity. and i want to gauge everyone where we are in time and length. it takes time to go through the data. i want to point out where we have it. the next slide shows a breakdown by ethnicity.

and you can see where students are overall. and then we ran some charts on our largest group of students. and our african-american, latino and chinese population. so this next pie chart shows the percentage. these are current juniors. who are african-american in the system, and it shows how many are on track or off track. so you can see out of the 323 students, we have 84 who are on track. but the remainder need to have credit recovery options in order to be able to graduate on time. of our latino students of 323, in the 11th grade. sorry. wrong chart. 821. in the 11th grade.

you can see that we have 265 who are on track. meeting their benchmark courses. that remainder, the 364 and 114 and 39 and 39 will not graduate on time unless they are afforded the opportunity to take credit recovery or more opportunity for classes. the current students chinese in 11th great, 1724. we see we have a large percentage of them on track. 1237. because we have a large number to begin with, but our percentage while it looks smial. the number is high, student who is are not making progress towards graduation or will not graduate at the end of next year without the opportunity for a credit recovery course.

or students who are english learners and there is overlap in this category, because the chinese and latino and other ethnicities will be reflected. we have 733 current juniors and 224 of them are on track with the remainder off track. and needing more opportunities to graduate. our students who received special ed services, and again there is overlap. we have 364 who are current juniors and 79 or 22% have made adequate progress towards gradua graduation but the remainder need extra opportunities. when we define it at that level and what the schools receive as

part of their individual plan. they receive the information specific to their school site and the names of the students. as a principal or counselor, i can look and see the list of students who have credits but these are the courses they are missing that are graduation requirements. we gave a common language and common way to target the students. now the counselors are tasked having individual counseling sessions with those students. we have a standard form and tracking form where they report back the progress of having the conversations and conferences. and report back so we can assess their progress. they are doing that now until thanksgiving break was the goal to have all of those conferences. the other thing we wanted to as

a district was to do a better job of doing outreach in the community. and providing the same counseling sessions that a student can get at his or her school in the neighborhood. so if a family member or parent or guardian wanted to attend. but couldn't make it to the school, there would be another option. we have a series of meetings scheduled with community session, and our first one is tomorrow meeting at omega boy's club and then we are scheduled at coleman and cabrillo. so our goal with that is to outreach to families, doing mailings, calls, etc. and give them the opportunity to meet with a counselor and understand about the requirements. and see where their child is

towards those requirements and hear about credit recovery options. so the other thing that we need to do is make sure that we are expanding our credit recovery options. so that the students have the opportunities to take the courses that they are lacking or fail. the task under this is to ensure that the credit recovery options at all sites are restored. we had the school district a grant from the state for 20% of afterschool funds. in the summer after the budgeti budgeting -- provide credit recovery at individual sites. eight of our schools no longer have those funds. and we anticipate that the other group when their cycle comes up

for renewal may also be cut. and we want to be sure that we have a re-establishment of centralized evening schools. there are certain courses we haven't been able to offer through credit recovery that we need to. such as p.e. and world language and science labs, and especially chemistry. we want to offer those to give the students that opportunity. we would like to partner with community organizations to take advantage of technology and some students using online options to have an option to work on their credit recovery online. that is web based for a lot of programs. at their community-based organization. we know that a lot of students like to hang out and give them a safe place to study. and they can do that off-site. we want to establish that

infrastructure. and then we set another group of students that we want to be sure we provide extra support for. and an example of that, the last two summers we have been able to have summer school for the class of 2014. because dcyf has provided some funding for that. and we also at the same time worked with an organization of cbo called young community developers, and they worked with a group of our students. it was 50 the first summer, and i want to say close to 100 the second summer. and the outcomes for the students who went through the program were greater than the outcomes with the rest of the students. they had 90-95% class rate for their summer school classes. we want to give an opportunity to give a boost for these students through programs in the past, where we had measurable

success. these are designed to increase the credit recovery options that we have at those schools. but also across all of our school. because right now the seniors, the ones that get priority. and we want to expand the options for the current juniors and younger. >> the loss of funding was 1.6 million and the request is for 1.73 to expand services now? >> correct.

and then we also added, it's not just the credit recovery but in the budget sort of overview sheet sheeted -- sheet. there is $400,000 to continue enrichment programs such as clubs and debate club, some intermural things that happen after school we included in the request. the $300,000 is the centralized evening school to provide access to central courses and to have standardized location. and that is to establish three evening school sites across city at the high schools. $200,000 would be for the community satellite centers. to provide cbos for the

technological need and the center set up and training. this is one time. the 150,000 is to hire two people to coordinate this. one specifically with online technology knowledge to make sure we get this implemented and implemented well. this would be positions that continue being funded by the school district. and as we go through our annual budgeting process. they would be allocated into that. so again this is one-time funding. the student counseling sessions are the extra boost we are doing right now around the community. extra outreach sessions with families for counselors to really focus on this group of juniors. the targeted support is again to give us a boost for this current class of juniors. who are the first to be hallowed to these graduation requirements. and to be sure that we have that extra support or the opportunity

to give that extra support. like we had the opportunities in summer school. >> of this 2.7, which categories are one-time in nature? maybe you can just call out which ones were. >> there is the ideal world and the reality world. i think that the afterschool credit recovery. the largest bucket. >> which one? >> 1.7. that is something that we have relied on the 21st century grant. and we had good fortune to have that at the schools for enrichment and site specific credit recovery. as we move forward and don't get that for the next cycle of students and schools. we have to look at offering

centralized evening school. we won't have it at all 16 comprehensive sites. but maybe offer evening school at six different sites. >> i apologize, 1.7 is ongoing and the remainder is one-time in natu nature? >> through the school system and budgeting process, we will have to budget for a centralized evening school. that would be ongoing, but the exact cost of that is probably double what we have in here. if we don't get the afterschool funding we will have to expand the evening options. so -- would the 1.7 be one time in terms of requesting it from the city, is that the ask?

>> right. >> yes. because then the school district is going to have to determine how are they going to provide centralized evening school moving forward in a sustainable way. >> for the most part including the site report this sounds like a one-time request? i am sorry -- i think the question is really around. we are back-filling cuts that the school district has seen. these are previously funded activities that the school district has sustained over time. could you clarify in terms of what have is back-filling that need. versus what is one-time requests that don't need to be refunded again in the next fiscal year. by the school district or any other funding source. >> the specific things that were cut were 1.6 million from the

21st century after-school fund. the evening school. we would have evening school year round and this is one semester, and that was $600,000 that we spent on evening school, and that was a cut. in terms of the other amounts, those are more difficult to say directly related to cuts than overall. and we had to reduce things that we would have done with the school district. contract with the cbo and have counselors do more outreach. not more of a direct correlation. but definitely the 1.7 in the evening school is a doubling amount or the back-fill. >> thank you, perhaps that's not what i am getting at. there is a request of 2.7 million to do this work, some things are one-time in nature.

but even if they are ongoing expenses that we can't back fill the school district. so the question is this one-time request. and asking this halfway through the school year. and is this expense for the half year or school year or what is the school's plan for this? >> this is for this year. some purchasing such as the online licenses don't expire. those are smart budget planners and purchase x amount of licenses and don't have to purchase next year. and focus the budget on the extra money for the teachers. >> good afternoon, deputy superintendent. i