merican 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 done annual an annual event and only 35 districts out of 9 hundred and 44 had reserves that were below the state minimum in 2013-2014 so most of the majority of the district about 9 hundred out of the 9 hundred 44 districts had reserves in 2013-2014 that exceeded the not the two percent every district has a la unified has la unified is one percent but month as you can see 99 percent of the district in 2013-2014 had reserves that were substantially over their requirement and okay. thank you.

>> it's a very good to know about where we or so i'm seeing that the statement of reason that you put down are things like technology and then on the other side bus transportation so we're saying that we're going to using this overflow for those purposes; is that correct. >> some of the potential use. >> the potential uses okay. this is what i don't get in the budget we've set aside money for the purposes out of the budget we're going to approve together tonight so it that the implementation on both places that it is going to be this money and then in that block this money is that a duplication. >> no commissioner not a

duplication take for example the $7 million for technology we our plan is proposal to use the one time funds we will receive from the reimbursement or the paying back of our prior years amended complains that one time fund does not sunset it is provided to us in one fiscal year, however, districts can use that fund over a number of years what we have incorporated into our budget is a small amount to be used in 2015-2016 for the technology role outs with the understanding this will not - happen over 3 years and will cost the district a total of $7 million that is not incorporated 0 into the expenditure budget part of

the reserves we're designating. >> and our next question so on the state update page 7 you say that an additional of $490 million $490 million certified staff do we have an estimated amount what that means for us. >> any estimated amount is purely ball park historically of the district given outside this is purely based on- we've received roughly one percent of state funding so this will translate to roughly $4 million but again, it is purely ball park. >> since the methodology is different not based on 88.

>> not on the certify. >> i don't know what the number of certified staff statewide say, i know what we have but can't commute that. >> the reason i mentioned we have in our peace funding actually valid dictated a lot of money for this purpose i'm wondering if we can use the money to cover some things in the peace budget we can use it with one time money and, of course i'm concerned about the george washington they need help 75 percent of the staff the first thing principle and others coaches this is a perfect setting to fund something like that to give them more support i think it is for educator effectiveness and it fits in

just a suggestion i actually would strongly caution against using those remember those are one time funds salaries are ongoing so i really caution putting salaries on one time fund ambassador by all means using it to balance - and so in our p funding we have a liz of fund we could use this money and swap it out for the p funds i'd like to give that suggestion actually it seems this is what they're designated for and actually, we have - we're going to be voting on this amount of money i like the p budget a lot of it can be put into this too. >> this one time so even though some of the programs programs

are ongoing we can pickup again next year but for this is it fits in; right? we can discuss that does that make sense. >> no deputy. >> so commissioners, if i could chime in for a little bit of a one way we might or you might think about there are several aspects of the state budget as described are different than the assumptions that we're asking you to consider and adapt some of them work in offsetting was for example this professional development for certified employees this is the ball park figure let's imagine that is $5 million it might be a little bit less it depends on the proportion of our fte counted

versus the statewide we don't know what the statewide fte we're using the back of the envelope it is about one percent of the total statewide stfrtd the nominee the appropriation of $9 million in the neighborhood it is along we're proportionate that's not in the flying recommended budget on the other hand, there are reductions in the lcff funding in the final agreement that are lower than assumed in the recommended budget that we have been constricting until last week basically there's also a reduction in the one time money for the mandate

cost reimbursement those together might be a $5 million hit frankly so we might receive $5 million more or less reduction in the lcff and the one time cost reimbursement and see that money in the form of an increase for through this one time certified professional development grant so some calculations that we need to as the lady will be the lead person as we get more detailed and the specific impacts for each component of the state budget we'll have to see i caution the board from getting attached to specific proposals about you know things like the certified block grant money until we see the aggregate of the increases and decreases one comment about

the professional block grant resource we did include in the recommended budget an increase in unrestricted resources for the begin for the program and sups to the tune of one million dollars 34 or 5 so that is certainly a use that on its face can be used for associated with this certificate of professional development fund and those funds are good for 3 years so they can last for next year and the following two years i think those are the kinds of details we'll be well-advised to think through and bring back the reserve shuns. >> it is true for everyone i'm

looking at this is the the program we've invested in this time around but things like the treat all the administrative meetings those kinds of things seemed like fits the description of the block grant up for discussion and give us ideas that we can do this and the other thing i want to talk about the special education budgeted so i'm looking at this budget and again my apologies i don't know how to look at this i'm looking at the 2 hundred 90 in this book and under special education so walk through this is a total budget of special

education of hundred and $36 million 3 hundred and 51 plus; is that correct that looks at as to that is an increase though; correct i'm looking at this 2014 and 2015-2016 budget and it looks as to that has gone up and one department i know our transportation costs has gone up but not this much i'm wondering we did a special ed, i went i could be wrong superintendent carranza but the special ed budget will remain flat we've done redesign around resources and the kind of stuff it absorbs

any new expenses so i see this budget creeping up a little bit and i'm assuming this is part of our general fund contributions is about $70 million it that what that is? i think when the budget committee i was on it was $50 million i'm wondering did i miss hear you deputy superintendent gerrero when you said the budget will remain flat you said so it is going to remain flat i'm seeing an increase of million dollars i'm questioning that i could be reading it wrong i'm going to ask the superintendent >> great, thank you dr. murase and commissioner fewer the

biggest cost driver is staffing staffing is incredibly important but it is also driven by i e p and the staffing that requires as part of i e p the board recalls over the last two years we've made considerable efforts to align staffing where the i pe needs from consolidations from schools moving staff to other schools and the board remembers you see one school going to another school staffing is a driver of the costs around special education unrelated to they design with the special education services i will venture to say and weigh

in were not for the inefficiencies as we impacted towards the design that increase would have been more substantial so increasing more substantial without the work we've done i want to ask the superintendent to talk about that what that means. >> superintendent sort of voiced what i was going to say because of the managed staff are rescued in this budget and because of the salary and compensation increases that number reflects accounting for the increase dr. listing and team are on deck they've walk through the budget as well and drizzling into the redesign and efficiency it is the apparatus or infrastructure that has grown