team and superintendent have gun control to where we're at so far. i know the commissioners h have heard us talking about the

. so we know that the commissioners even though you you might not have seen evidence of us listening to you as

closely over the years your observations and the correctiri over the years hopefully, you'll see some of the aspects. he know that's not there yet. we'll probably never have a perfect document but we're trying to not to use a bad acronym accurately improving our budget material. we've split up some of the information into two volumes so the first volume of the book their labeled volume one and two and by the way, although we've

protruded the information it's on the website. for the members of the community that point to look through this documents. the first document is the county budget and a narrative section. it also includes central office and division budget summaries. the second volume has the site budget education site. our pre k and elementary and k-8 and middle high school and court schools. i think all the commissioners have versions that are tabbed so you can flip through to find the information you're most interested in. the two years comparison between the 12, 13 budget and the

proposed budget ftes for next week. a couple of caveats especially to the site budgets. we've noticed something this was produced and came together last week. we're noticing some things that need to be clarified and we'll flag this for the second reading. but as your reviewing the documents commissioners we're anticipating you'll be coming across those observations. one important thing is there's been a different approach to budgeting for the site based special education staff. and in the past those who have appeared in the site or budgets and because we want to - we

think it's adviseable and will lead to better results those have on consolidated into a central budget. it has the appearance of showing the reductions from the site budgets and that's

errors. in some spablgz the resources directed toward star and dream have been ffkd and allocated in different 193 and there's has been some other organizations of budgets including the family support services. and a suggestion that we got from president norton which we'll try to incorporate too is

to have a summer of the organizational shifts so if there are things that were budgeted in a certainty way but is being budgeted in a different resource we'll try to give you a summary of those kinds of changes. we have some of the detailed summit pages that have to scale issues. so the y axis is not stated with the level of detail terms of the increments we'll adjust that to the second reading. and that's just an issue with getting the right level of

provision among the different tick marks on the left hand axis. we're going to fix that for second reading. if anyone has questions we'll clarify as needed. so on slide 7 this is a list of the and probably not an exhaust list but a list of some of the funding priorities that in the senate teams with the decisions with the superintendents that we've been trying to find the right balance of funding. we won't go through those one by one but there's a fairly rofbtd issue we're trying to address.

we've made a lot of process on most of these and but it is still a situation where we don't have the ideal level of funding to do what we would consider ideal or even adequate on all of these priorities. >> so to lend an example where you see multiple teetered supports on the school staffing city hall supports it might not be a fully implemented plan there's a reserve on the additional staff. so the things like access to the listcy code or an intervention teacher maybe part the improvement effort. for example, face is listed

there to implement the plan. there's some partial funding you moving forward. >> so at this point, we're going to share a little bit of information and i think we can go through this fairly quickly. this is not the first time you have seen this information. but the next few pages of the presentation has to do with the state budget the context in which we're developing the recommend budget. so the governor's budget which appears now to have result in an agreement those figures show that. actually there's one mistake on there it's the mandate block

grant it's 50 million. so the most significant piece of this the lc f is going to be implemented so the funding of $2.1 billion will be we think will be directed inform the first year >> i'm going to keep going. on page 89 it is really important for i know the commissioners all realize this it's important for the community to realize this that even though this is good news especially relatively speaking there's an encouraging increase of resources this year this is still climbing out of the basement which in terms of

funding l there will be an increase and california still rates near the bottom of funding students. the next page shows the revenue funding which is about to be replaced for l d f funding. we're style funded at a level below not the adjust funding we were seeing in 2007 and 2008. and even though there's a lot of celebration and relief about this increase from 2013 to fourteen isn't a big dad and mom but in the big picture we're climbing out of 0 very deep

hole. not to mention the green line which is where we should have been if colas had been funded every year. so when the state is projecting it will take 7 to 8 years

public isn't aware of this the government reached an agreement and the legislature is expected to draft and pass a final budget by the end of this week and they need to do so to meet their

deadline are face suspension of their own pay so evidentially expects that to happen. the bill language as not been made available yet so we're going to pay close attention to the fine print. on page 13 s is our revised projections. it's for the rest of this year. just to highlight a few things we began this fiscal year with 578 point fund balance. we have right side that fall short of existences by $17 million. we expect to have the ending fund balance at 34 million which included two components just for

simple terms the designated balance those are our required revenues and designated revenues of 15.5 million leaving a balance of 14.7 million. and even the budget year the beginning fund balance of $13.4 million we still have an imbalance between revenues and expenses that's reflected from the proposed budget and that would just about draw down the fund balance to the minimum required revenues of $15.6 million. so that's what is assumed for the budget. in large brush strokes. it doesn't meet our revenue and plus mandatory reserves.

we have to do that or we'll have intervention from the state. we're going to be working on the multiple projection on the next few days and that has to be part of the information that is submitted to the state when the budget is adopted so through 16. i'm going quickly please let me know if i'm too fast or slow are that the baseline funding t is assumed to increase oh, this is old assuming that the c s is implemented. so that is on the order of $15 million for a growth between

this year and next year. the rainy day fund support is just the balance in this reserve that 25 pictures of that balance will be reduced less than 2 million. on a positive note we

commissioners in prior meeting we're over two years increasing the amount of facilities for our charter schools. we're charging well below the amount we could charge but will generate refer next year. the district made deep kits over the past two years. and some of these cuts are still with us.

and some of them are being restored or reduced through external fund important for the most parts they're still sustained. and then there are additional costs. so of those additional costs are listed again not an exhaust list. but when the health and pension benefits. just to illustrate the impact of that what the city and county retirement system. the civil service system and we know that's not the majority of our employees. the year over year increase in the hour employer contributions for every dollar of payroll for that group of employees is

increasing by 3 percent of payroll. so we pay up to in the current year we pay up to 22 percent for a good portion of our classified workers. next year that will grow to 25 percent it's equivalent of a raise but it's going to the retirement system. that's just for pension benefits. we made no employer contributions a few years ago. because of the city retirement programs this was rerecession. in those enshu years that

contribution has increased very significant legal and that's projected to stay at those electives and peak in 2014. hopefully it will start to subside. i know there's a lot of discussion in the media but that's a real cost in our budget as well. and then special education >> this next slide wants to highlight a few factors that seemed to contribute to special education. it increases the revenues under cola even though we have a much firmer staff allegations that we want to make sure we have

adequate staff for the schools. there's still colts with personnel not just because of cola. we've talked previously about the 15 percent set aside from any da. also the professional development expansion opportunities to boost the staff and i g a practices. there's as also a greater degree of data analysis being a maid available for the coming school year. there seems to be a increase in transportation cost due to a greater number of sites or if

it's do to more settings. unfortunately, the state doesn't see to backfill the education cuts and that's not helping our situation either. >> the tier 3 resources were a topic of discussion. you've already seen those numbers. and then in terms of next steps so what we hopefully, we will hear tonight and in the next several days is comments or questions from the commissioners. and we will be in lincoln mode tonight. we're happy to try to answer the

questions i have but i think just to make a suggestion for you to consider next week's discussion a dedicated discussion but if the commissioners time to think about your questions or share them outside the meeting so we can be perpetrate to address them and prepare accordingly to next week's meeting. on june 18th we think the mayor will have signed the budget. wherever the budget is infected we feel like we'll have a good

sense of what's in that budget. but we all in cases after the board adopted the budget we look at the assumptions from the statewide budget and recommended additions to the budget. the schools receive their final budgets in september and go through the revising in september and october. the books 2013 will be closed and the audited financial statement in december. this last bullet there's an error here sorry about that this should s should say the report is - we

won't go through those but we'll post those materials on the website and not everybody has obsessed on the lda. but we want to give you some background information >> so thank you. >> thank you depth superintendent. first i didn't see any speaker items >> i want to thank you for this. it's such a more moving targeted. i want to say this has occurred to me and hopefully level to us in preparing for the next two weeks. but i realized over the years as

we've tried to improve the form and information that one thing we don't have in the budget are explanations of variances. i want to see what is a significant variance. what you did here what's in the special presentation about the special ed one the structural thing about we're going to move money from one structure to another and it's not the same money and what's kaikz the cost increases. you know, that's what i wanted to know when i was reading this part. so seems to me i don't expect

you to write the budget but based on the questions we ask or other significant variables we should be paying attention to. if i could highlight those next week between that and the final vote >> yes. i want to say thank you. i can see what i'm going to be doing over the weekend. my question is on page 16 which is the expenditure highlights. one is related to what commissioner winn just brought up. maybe it's buried in here or those books by t is there a way you can pull this out a little bit. i know the commissioner young you brought up those large

ticket items. can you do something similar to us and pull out the additional costs. so we know what's driving the bulk of our expenditures. i think that would be helpful to see this. i think that would be helpful to see. and also on the reflection of the spending reduction most of those are not in our expending priority. i want to know about those cuts and not chosen as a priority to replace the cuts. but a number of those things the