to kwoflt for prop 8 prop 9 now more dollars not to forgive to pit in their poktsz to the tune of hundred thousand dollars this year and plus awhile i appreciate and i really am not being facetious i appreciate the high investment for the structural model the truth is what they're doing is counting on being able to make more money they set the amount of money whether the curriculum services and other services in order to present a balanced budget we'll say you don't owe us that and make up these credits things this is counter in active if you think this is a good way to spend public money to educate

kids and say it's okay with us if the profit companies they can charge whatever they want with no public democratically oversight i find that disturbing as a matter of principle but in addition it is irresponsible of us to grant this charter or the renewal because we have actually had experiences in this district we have charter schools that are financially not able to sustain themselves and in the ends those things have cost us money in terms the students it come to our schools but we have had to you know in the ends whether or not the schools fails or not step in and spend the money on

things that we have no obligations because we won't leave the students with no service i think from a fiduciary point of view that is what is being present a model certainly the students like and if people are successful in which is on the face fillmore unsustainableably and instead of it now being the responsibility of state board of education it would be our responsibility and we'll face if whether we'll provides this facility to the school with no obligation to provide one to so i think there are i have doubts i appreciate it is helpful to some people and i am interested if pursuing the useless physicalness of the learning models but i think in this case because we see the

school there and their balance sheets and not a sustainable financial model and don't have the obligation to adapt it would be irresponsible. >> commissioner mendoza and i have the same feelings as commissioner wynns and commissioner norton being on the budget committee that portion of the discussion it concerning and i've never seen a model like it is an interesting kind of acceptance on the parts of the folks that subsidize the school and it does bring some really great concerns as the model the school is fine i think that you offer offering to the young people that clearly they appreciate and this is kind of the backside of the office

that they are not concerned and they shouldn't be concerned but that's the part that makes me very uneasy and uncomfortable to commissioner wynns point at the end of the day as the charter it is our responsibility and i did not get a clear enough response or satisfactory response from our budget director this is how we handle it or this will be the back up plan or if k 12 went away we'd be okay. because we got xyz in place we're dependent so i can't consciously support this. >> any comments.

>> i have a question so i went to visit the school and actually our next to the body president shows quit impressive and i think that overall the school was impressive i thought i'd spend maybe an hour there i took about two hours i decided it was so interesting i so, so. students i felt like couldn't be successful in some of our larger comprehensive high schools i felt like and everybody knows that roll types of a sensitive topic to me we lost a lot of students we can't service in our regular traditional facilities i love what you're doing i love it is up at davis it was empty i

went up to see matt when he was up under and didn't have the same feeling i feel like you've made it a community and the students you serve it is i thought was fabulous i really liked the whole school the teachers and speaking to you, mr. henderson and i like the counselor everything about it i wanted to commend you guys i like you're in our facility and actually, i think being up there in gloria davis i get lost every time i go up there it's a little bit difficult but adams to the inclusiveness and makes it cozy, in fact, i think we should be looking at some of the classrooms used by instead not to interrupt your whole school

so this is the things i don't like i don't like our finances so, please tell me like i don't i also think there are two parts; right? we have to prove it finallyly and by the curriculum i think it fabulous but your finances are troubling i think you've heard that cross the cardboard here the finances are part is a big issue we know it's expensive and i know when it came to us with march and he said oh, you know this is online school and never been done before i felt like, man i'm not going to be experimenting with our captioner or children but i'm glad it's not that model and evolved to this model there

where there's 0 not just o'ly envisioned kids at a computer and being isolated it's really very come municipal and nice county so mr. henderson it's about the finances here i know that you were in a hotels for a while or if that's not true. >> in the first semester in the first flex they were in the basement of a hotel and while in the lease of 55 post it was being negotiated at the beginning of the second semester it moved into the fall out we are that into until this year 5 post street. >> there was a huge rental costs. >> in 5 post there was a huge rental cost and an escalating

cost. >> when our parents came before us your parents made comments like so i'm going to say like i think kind of the comments but after i do like our community now i said how people choose not to follow you to davis but this community i like but the finances are the thing if we are responsible for presenting a balanced budget every year finances i'd like have to say dedicate probably 70 percent if we don't have the money we don't do it so i hope, huh? >> about the financed so you want to continue did i not let you answer. >> oh, the big cost was at

hotel what are the plans i'm concerned i wasn't at the budget meeting no budget to the financial stable or independent. >> no there are plans it has to do with the as commissioner wynns pointed out we're in a proposition 39 facility our rent cost is greatly reduced now what the memo that mike sent over i was looking today also points out that i imagine everyone has the same maybe not in front of you - >> so we're saying okay we're saving all this money because were in a proposition 239 facility and mike points out here for example, in the 2025, 2016 our budget we're projecting

now just to cut to the chase we're essentially $700,000 in the red so that's true and this is how you, explain if a concrete way the balanced hundred thousands of that essentially a the services we're getting from the services k through 12 that's the service fee which is the top ends of what k-12 is cello for computers and things that are included we can say that san francisco the small charter school offers more classes because we have over one hundred and thirty courses and we pay for those the k-12 is part hundred thousand dollars so we have the gold package that's $500,000 that's the balanced

budget a that's what k 12 is saying essentially like a grant like the computers we're going to give them or that to them that at least leafs $300,000 we missed our enrollment targeted significantly on that budget we created for the 2015- 2016 we anticipated one hundred and 25 students so similar about just under a hundred and 20 maybe 19 we thought we could hold students and grow a little bit that was unrealistic we're at 92 students right now we're essentially 0 thirty students below our target when you multiply that by how much per student it come out to $250,000

so you see what i'm saying hundred thousand dollars is the k 12 saying the gold badgering panning you can have that we missed our target by 2 add and 50 students we have a real problem of being under enrolled from what we projected and we're essentially to the tune of 2 add and 50 thousand students we have to deal with that does many help answer the question and yes unfortunately, it does commissioner norton. >> yes. i want to point out again not to be mean but let's you know so the facts are right you need 80 students idol suddenly in san francisco our service area in order to quality for the district availability so

they have 92 students enrolled but only 80 are san franciscans and they need more in addition to allocate 8; right? to meet their target is that what you're saying and that's correct right now, we're seeing that 80 percent of our students and this going to what you're saying 80 percent of our new students are in the district. >> davis or either davis i realized i don't know why we have the same last name but for the proposers of the preoccupy 39 we need to respond by february 1st so what do we

determine so this is goes to happen momentarily like next year important preoccupy 39 what number will we use to see if their entitled to an offer. >> yeah. they make their request by november 3rd for the class for next year we have until december 1st to respond and is yes, we agree with the project or no and here's why we look at the ada in district historically and look at it where they are now and make our own project where we on they'll be as far as of the ada if we don't think they'll have 80 units next year we'll say you don't have a valid prop 359 what

i have not to point out you're asking by saying that your financial issues are going to be resolved by remaining at gloria russ johnson da's office you're asking the commission to - that's what the board members have to decide. >> and i'll say that already our enforcement is we can already show in our projects on the proposition 39 request we're project over 88 over 88 that's due to the recruiting we're doing right away for next year including being at the enrollments fair for the folks we found there and as well as the other work we're doing with our open houses

and other things so we're - >> san francisco residents. >> yes. yes. because 80 percent now all contract are san francisco residence this is a big change for the school. >> any other comments commissioner wynns. >> i do want to point out one thing that's when this charter was did understand the first thing the petitioners came to us and said we're not going to have a negative impact we're going to recruit all over the community so we won't be effecting our financial situation i think so there are lots of you know sort tensions to consider all those things but you know and i will take one second to say that's why i don't think that charter

schools some participate in the fair uses i'll be quick so, i mean i think i haven't had an opportunity to come to the school i know we were trying to find the time what commissioner maufas said and dr. murase and president fewer said about how glerpsz makes me feel excited this school exists other than the site and had secretary and progress when the site and school was moving lecturer there was a lot of concern from our community to see it flufrn and your excited about the future of it is hopefully as a strict i want to xhupd commend you for

what was not an easy transition at that site for reasons that are already been been discussed the fact unify moving in the right direction i feel like you'll grow in the next year and from what i've seen i've been to the site to read the model it is different from any other model in the district and fulfilling an important role on the curriculum side thank you for doing it it will meet a need for students that won't be successful in other environment my comments and concerns are similar to president fewer and we have obviously a budget committee that looked this carefully and staff that raised serious concerns on the budget and finance reviewing that myself and the recommendation go

i'm going to go with their recommendation based on finance and budget i'd like not support it but if you do anything successful in that you have the opportunity to serve the students thank you very much. >> commissioner maufas and i want to get a clarifying question so in regard to k 12 the organization and i heard this at budget & finance committee meeting she talked about the credits which came sort of at the end of the fiscal year process and said how much you needed and they'll give that credit based on that but you've talked about it as to it's as

grants and they spoke in a similar fashion did you all go back and have a discussion about them putting it getting the money or giving that credit to you on a revenue side in the front ends of the process did you have that discussion and we raised it as a discussion but to say this is something that's going to happen won't be accurate but we definitely raised it is important the reason how confusing is t is. >> i agree so what do you and i'm not holding you to this since you're not going to get back here any times soon you're hoping to figure out what you're going doing with that that will

still be a topic that even though if didn't pivot anymore you'll have to explain how to get absorbed or what happened to the deficit because i heard in the budget & finance committee if you which i see another organization i am curious about what you all feel going forward as. >> look at yourselves going forward is there a way to work through the questions i think are valid questions that the budget & finance committee about the sort of model of the funding streams it come into sf flex? >> are you asking before on the balanced budget why the trying to change that aspect.

>> i am i mean, i'm asking you from what k 12 do what will you all do to address that issue of i came back to this board for a renewal petition 5 years from now i think the board will sigh in the history we said why you had this issue so i'm asking you all what do i predict since you've seen it as an issue that's at&t's an issue here not a mystery so i'm asking you to think about how are you going do goat through to issue it's not an issue for you all but an issue for this board of education the governing body of

the district you are residing in so i'm asking can you share with us some of our thoughts what you would do about this may be you don't have anything i don't want you to make up anything and i think i can only say my thoughts extend to what i said a moment ago it raised it to k-12 it has come up in other places it's confusing so i think that i think my opinion is k-12 needs to get better i've mentioned it k-12 needs to be better at telling its own story about what is doing in its view to invest in public education in order to

as commissioner wynns pointed out to sell textbook online curriculum to districts k 12 needs to be better but i don't know how to do that another way to we are that commissioner haney he wish p there was something i could say to change our vote i will say that if k 12 were to go away that $500,000 that we would pay that goes away so this comes back to mike's point we've missed our enrollment target and for staff those are what our enrollment is we're overstaffed where is the cost in the traditional charter schools we missed our

enforcement so where our deficit is right now we can take k-12 essentially out of the picture that 5 or $7,000 goes away were that thirty student difference of over project of one hundred and 25 and what we were staffed out in that acceptance you take the 12 out of the picture we're a charter school and, yes we have an immediately response. >> commissioner wynns. >> i have a question this raises there are several comments of references in the k-12 itself talking about this budget as grants i want to point out ii think maybe it doesn't look like we're going to grant if renewal but i'd like our lawyers to look at the legality

i don't think that k 12 are allowed to give grants. >> i heard like grants. >> so, in fact, one of the problems that i have with that budget they sort said you know they don't just say oh, we'll reduce the prices but count that as budget credit and if you have more money we'll take it there recent spiritual and legal problems should this renewal be granted you're right a request to do it. >> okay any more questions or comments from the board mr. haney our hands look like. >> one quick thing mr. davis is that because i felt like the memo we got and the information

didn't focus on the enrollment issue i want to make it sort of is that your understanding the difference in that the enforcement or the failing shofrt on enforcement is the primary source of what make ups the deficit. >> no, that is not really the way i view it i upstairs what the mr. henderson is saying a number of things were discussions well moving from a private lease to a prop 39 lease that is cheaper saves a lot of money but in the 2015-2016 year they anticipate a savings already by they're still saying they have a $700,000 deficit so

it doesn't make sense for me to say that part of this fix would be moving to the percept 39 facility iota problem if you want to look at the basics of school districts and school solvency review we need to rely on it for the future finances of the school the k-12 accept it basically didn't allow the school to have a reserve for uncertainties and having the deficit spending every year as far as it is presents that's a real problem we have criteria and standards that is a that school districts and charter schools should have a receiver for economic refers every year and not deficit spend more than

one year in a row basically, if you're looking at 3 years and there's deficit in 3 years that's a sign of future components that's a problem looking at it it historically they've been doing this for 4 years it works but f it didn't present a financial picture that school districts sign off and the county of education sign off on it as a growing concern. >> i think we're ready for a vote okay. are we satisfied? yes, so i think eave owe we've heard all the process and cons >> mr. haney there on a.