for about we go to the next steps if we could just turn quickly to the documents that is a two page two sheet document of about the districts and the counties reserve adaptations with the blue soft commissioner walton has that, yes. >> sorry i- i'm not promissory note that but the handout are available basically there is a new requirement and this came but with the budget act from 2014-2015 the current year we're in sb 858 was passed meets certain conditions at the state

level met one being that the state contribute into the state reserve that will be a hot cap established that the districts couldn't exceed two times they're required reserve for the unsecond-rate we believe that hot cap will not be implemented however. >> new requirement that districts who are projecting to have a signed and unassigned reserve balance in excess of the economic uncertainties technical jargon we're required to have a two percent reserve for economic uncertainties that is calculated of our total restricted and

unrestricted expenditures if a district at the time of the budget deposition for the provisions is showing they'll exceeded the 2 percent required for economic uncertainties district is have to hold a public hearings and substantiate the need to carry that excess reserve so this document evidences our reserve levels that are over and above the 2 percent required reserve in the budget year of 2015-2016 as well as in the out years 2016-2017 and 2017 and 5 to 6 and following this calculations of the reserve there are explanations as to why and subtion why the district requires having those reserves and we will i'm sure have public

comment on this but now go on to the next steps so the states adopted budget all indications that will be signed before the july 1st deadline and staff will analyze the budget when it is signed and determine the impact on the districts own budget and we'll recommend the chances as appropriate we know of one the gap closing percentage that is that revenue will have to be reincluded and another change come is the one time amount that districts will have received as a repayment of the prior years of mandated reimbursements which

at the may rice was $681 it is roughly 4 hundred and 31 for 88 so we'll be recalculating those amounts and rearising our budget and the revised final budget in september and due back in other we're closing our book on 2014-2015 in order to due to the state on october 15th he presented to the board prior to that and audited our financial statement to be ready for the presentation in december and first interim report reflects the changes will be presented in december and i'm going to turn it over to deputy superintendent lee foreclosing remarks.

>> actually with ami to make a couple of thank you's and i'm going to turn it over to to deputy gerrero commissioners on the next couple of slides i want to thank a number of our partners both in entrepreneurial to the district and external partners if you'll use it takes a village to write an el cap in a budget and many many people that were involved this year and we do want to highlight some of the contributions of the individuals or organizations have made so moving from letting left to right the left hand column is the task force that was formed this past fall that

was really an extension of the discussion that took place last spring including the board of education had about wanting to achieve the process of the second version of the el cap that list expands to pages so if you wouldn't find i've been terribly alone and forgotten in manhattan so you can see there are two pages of names of members on the el cap task force i wanted to highlight a few of those individuals for specific extraordinary contributions we have ruth from the family community engagement team, and georgia williams before that time so merry remand did a tremendous mulch of work i'm sure you're aware of

commissioners the stakeholder engagement process is lead through those individuals and many other partners many of whom are in the stakeholders column on the raise your right hand so along these conducted and lead 0 robust stakeholder process described in section one the el cap and engaged hundred of individuals in deep conversations that informed the el cap and the impact of all the feedback into the el cap that is described in section one of the el cap no small undertaking those are staff members across the team co-sponsored by superintendent gerrero and myself not all of those people you can commissioner we met throughout the year and intooeven met in the spring to

develop the program and the superintendent informed us what he saw in our recommendations he wanted to endorse and what he wanted us to rethink this is a vertebrae high fundamental part of team on this list i'd like to give a special shout out to (calling names) so they were the core team to develop they did a lot of the heavy lifting in terms of the budget and the el cap and in addition to another individual on el cap definitely want to mention them with the materials you've received next assume is the services team and this is formally i guess

lead by the acting budget director and the chief financial officer and she's here in spirit and all the staff and budget team they've performed incredible amounts of work that most of the community and board you don't really see but a ton of back office work the technical aspects of the project we couldn't have done it without you and the next column the stakeholders they placed some process around the el cap and also have gotten this i'm sure you're aware of the pictures are specific and substantive feedback including the public council and very engaged with the el cap and others processes as well and finally spilling into the next page other staff those are vice presidents mostly that are

mentioned here and there's one individual not mentioned kathy fleming the director the public richmond fund done a lot of work to pull together the chief elements of recommended budget those departments have each played an important role in either theel cap or budget refers to the fact that the budget in particular and the el cap represents a composite effort of the leaders and departments throughout the district so that was virtuosa team effort last but not least this is the second part superintendent carranza for his wisdom and being engaged it was

a better product as a result of his involvement and want to thank the superintendent and commissioners for your careful attention to the el cap and budget as well i would like to ask deputy superintendent gerrero to make the final remarks. >> briefly just to reiterate honestly it wouldn't be possible to try to put this together a thoughtful plan how to use those precious resources and invest them in a way that our policymakers throughout the community and circuit courts priorities wisdom glad we've acknowledged a lot of individuals and people that have contributed to the thinking and we like to say in the school system we're in the ambition of continuous improvement that is a

process and you could be assured over every single of the hearings or meeting or community engagement that was always followed by a pretty detailed ludicrously to think about what we heard and where is that reflected in the line items how might we continue to roll out that work and the one good thing this season was a little bit less stressfully than prior years and permitted a different kind of conversation around as we think about where to make investments we might apply to the capacity in teaching and learning and scenarios we've heard from the strshldz and community and board so hopefully, you'll see a lot of that reflected it has sort of challenged our smart team internally made up of

the crossed section of leaders to think about the strand of our work and not necessarily our ownville departments to accomplish the goals we've called out and heard quickly we've heard over the sort of this period of time so i do want to give that shout out for the team picking through the process and ramps up at the end of the spring team yesterday we have a sort of end of progress reflection and constructed a parking lot of a lot of things we want to do better and hopefully folks commissioner wynns was saying there is a lot of information and hopefully, we'll called out for the general public comment up front some of the ways you know when you dig down you'll find matched how important initiatives and priority work and reflected in our el cap and

our budget thank you to everybody that was engaged throughout this process. >> thank you very much for that presentation and for the tremendous work on the budget. >> i have 3 public speakers for the el cap (calling names) one minute each please. >> hello, again my name is awe lipped i'm with the public council i want to say how much we appreciate you're taking notes of comments and represents and taking the time to respond i want to say that under number 29 for clarification you know you'll think it to receive review and look at the suspension of african-american we want to urge you to really focus on the disprorment of the

african-american they on make up 49 percent but 76 percent of sprungsz in the school that is a significant problem while we acknowledge you're making strides to reduce proportion it more goals are needed their 12 times for o more likely to be suspended than whites and aliens there's a great need for issues of bias to be addressed thank you. >> thank you. next speaker. >> good evening, commissioners and superintendent i'm vice president of the united folks of san francisco as mentioned it is better to be talking about how to spend money rather than cut services a good time so it is a good time to remind the commissioners of recent

negotiated contracts ucsf and for other bargaining units and this is what it says if total unrestricted general fund revenues for the 2015-2016 school year hfa as stated in the 2015-2016 unaudited report exceed the amount for the 2015-2016 school year in the multi year projection in the 2014-2015 adapt budget the parties shall meet and adjust the salary if both parties agree sufficient funds are available and available funds adjusted part of what the school district good to retain good educators and other employees please keep in mind as your spend money we'll be looking at race raises for the final year of our

contract thank you. >> (clapping.) thank you, ms. solomon>> thank you. next speaker, please. >> and good evening, commissioners and superintendent carranza i'm here to say thank you it's been a pretty industriousness last 3 months our folks are on vacation but they are resting and wanting to put the where the rubber meets the road next year and work together with the district to help implemented those loft i didn't goals and they want to see those great strategies actions services with the kids in the classroom so thank you very much. >> thank you. >> i was remiss in not

introducing commissioner norton questions or comments from my colleagues. >> commissioner wynns. >> i'm overwhelmed by the amount of paper it is impossible to follow this i'm suggesting in the future that next year we try to figure out a better way than to you know that some of my colleagues have begun the same thing i've spent the week reading through this document you see my flags so i've done in past years trying to strafr my questions and notes and this is silly actually, we have to find a better way and in addition, i have here actually too late i did it last year's budget but the changes between last year and this year and make the

changes and in some place not true i see our revenue and expenditures in order to say oh, are redoing there i have to go back and look at the other budget i appreciate this is - i don't think - i think now we've got a huge amateur of information how to look at it if it is not assessable to use it is not assessable to the public so i think we're upcoming in a breaking point i don't have any more room for books more is it useful i can take this pile in the other room and i said that those represent an enormous amount of work thank you to everybody so i'm kind of hoping to figure

out a way to make it more succinct so it will be less work. >> so that's the first one and the second thing i want to know if what's our i've done a little bit myself which is fine i don't have the expertise but what is your first estimate of the lower amount of fund will mean in the you know how much less money are we're going to have and how we account for that in the recommendations you'll made i guess the other question the process will vote on those things and open up a public hearing. >> so our thinking and this is

subject to your preferences of the board but you're thinking is by taking the public comment that was just provided that constituted the public hearing in the presentation. >> i have have a question if we're not going to do it separately that is, i want to - i guess i want to know what we think is the - since this is temporarily wlaet for now at least as a restriction on the budget what we hold in reserve i want to know - we have certain

set aside you know money we've set aside for certain purposes i need to know more detail you can summarize it and give it to me later if you want. >> i can actually it is a short straightforward answer what is designated as purely as unspent balances on our restricted programs categorical programs. >> the money we still have so those are the restricted refers anything else we've set aside for the reserves is not counted for instance, i'm not clear i've looked for this it is part to find the rainy day money we need

so more writing it is an explanation i need something that tells me i've had people ask me this question people theoretically one is a budget expert and said you've given me our summary and the expenditures but this revenue didn't include all the city money i know it doesn't this is telling me where it is coming from so this is bringing that to mind we had a discussion in q u i a about the unspent amounts that is not represented in those reserves and what we report to the state a reserve i know i'm sorry. >> the restricted receive r reserve included any anticipated or projected unspent balances at

the end of the 2015-2016 year on our restricted programs and both p and q ta on the restricted side their tracked budget are set up and expenditures on those accounts on a restricted accounts versus the unrestricted reserves i'm not saying this is purely the piece of the funding but those two are part of the projected balances on the non rienthd funds. >> the state is going to count that towards the reserve. >> no, it is excluded from the el cap. >> why are we - >> why is that part of this hearing and with such as it is

informal. >> we have to report our total general fund expenditures that is the unrestricted and restricted expenditures the two percent reserve for economic uncertainty is very different in the indignity is calculated on that and from that you have to take out the two percentage that is the calculation. >> can you clarify that point the two percentage we have to keep in reserve includes the peace and the q ta everything in the unrestricted general fund so the state is saying we have to prefer two percent of the local fund we can't spend it for the public's benefit the the reserve is against economic uncertainty yes we can't spend that money

ever no economic uncertainty has been defined if you spend it, it is taken over by the state by the way, they spend it after they take it over so why do they count that money they didn't give us. >> if i can clarify calculation of the two percent amount is based on our total expenditures of unrestricted and restricted however, the two percentage amount in our district comes to arriving over $14 million has to be designated as part of the unrestricted fund so even though the calculation of that amount the two percent is based on the total expenditure that two percent is held against the unrestricted we

have to hold 2 percent. >> what you're telling me is that the amount the two percent of the money we pay locally in taxes and based on the charter amendment transfers to us out of our inrestricted general fund the money that the states spends on the education of our students we have to backfill two percent and never spend. >> okay we should do something about that - put that on the top of the list for our protective agenda for next year please and then also see if i can get an answer of the estimation of the lower amount based on the lower expenditure projection. >> i honestly literally came across this hundred and $30,000

number. >> this budget document i got someone said 5 hundred and 85 not 35 we should check and maybe someone made a typo. >> we hope it is 585 and not 535 but if 535 just a mental calculation telling them we stand to lose 3 to 3 and a half million dollars. >> this is not a samuel small amount of money so the 535 - >> commissioner fewer. >> bear with me i have a lot of questions that probable are so colleagues a warning clarification and sort of i don't get it is pretty technical so let's get back to the two

percentage you're saying the two percent represents two percent of the unrestricted amount that is all the stuff we have the two percent is $14 million so you're saying the state we'll justify why we have more than two percent this year that's because they cut us very quickly so to have $14 million that kept us afloat so we have to justify holding a reserve hates larger than $14 million so our spending the money every fiscal year; is that correct. >> that's correct. >> other justification have sales tax they're in the same kind of boat but our two percent

so we know how we are in restriction to other districts we have the rainy day fund and other district and q ta but other districts have actually passed a lot of parcel taxed so where are we in relationship to others districts this is something we might be able to fix for instance la unified must have passed something so maybe those tiny districts i don't know dingy so. >> just a little bit not a note i have here by the way those public disclosures of public hearing of our fund balance reserves has to be