BOARD OF EDUCATION OF THE CITY OF LOS ANGELES
Governing Board of the Los Angeles Unified School District

SPECIAL MEETING MINUTES
450 North Grand Avenue, Room H-160
10:00 a.m., Thursday, January 24, 2002

The Board of Education of the City of Los Angeles, acting as the Governing Board of the Los Angeles Unified School District, met in special session on January 24, 2002, in Room H-160, Los Angeles City Board of Education Administrative Offices, 450 North Grand Avenue.

President Young called the meeting to order at 10:22 a.m.

The following Board Members were present: Ms. Marlene Canter, Ms. Genethia Hudley Hayes, Mr. José Huizar, Ms. Julie Korenstein, Mr. Mike Lansing, Mr. David Tokofsky, and President Caprice Young.

Superintendent Roy Romer was present.

Mr. Huizar led the Pledge of Allegiance.

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President Young modified the Order of Business.
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REGULAR CALENDAR

CURRICULUM AND INSTRUCTION COMMITTEE REPORT NO. 1
Adoption of the Secondary Literacy Plan

Mr. Tokofsky moved the report be adopted. Ms. Canter seconded the motion.

Staff responded to questions and concerns expressed by Board Members.

By general consent the report was adopted.

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President Young resumed the Order of Business.
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BOARD OF EDUCATION REPORT NO. 1
Superintendent's 2001-2001 Budget Redirections and Reductions

The following speakers addressed the Board on the report:

Mr. Day Higuchi, President of United Teachers Los Angeles

Mr. Gene Krischer representing Friends of the Children

Mr. George Buzzetti

Ms. Janette Humphries, President of Los Angeles City and County School Employees' Union, SEIU (Local 99)

With the consent of the Board, the following speakers were given an opportunity to address the Board on the report:

Pastor Joyce Chapman representing the Gilbert Lindsay Manor Tenants Association

Ms. Chris Sheffield

Superintendent Romer and staff provided a brief update on the Joint Legislative Budget Committee meetings in Sacramento.

Staff responded to questions and concerns expressed by Board Members.

Ms. Hayes moved that the report be adopted. Ms. Canter seconded the motion.

Mr. Huizar moved the following substitute motion:

l. Authorize the Superintendent to make the following budget cuts as indicated

in his budget memorandum:

Item Description Amount

1 Reduction in Information Technology $5 Million
2 Reorganization Program Funds $1
3 Reduce Non School Accounts (4000, 5000, 6000) $15 Million
4 Reduce Administered Costs $25 Million
8 Freeze Non School Positions $2

Total $48 Million

2.Instruct the Superintendent, the Budget and Financial Services Office, and the Chief Financial Officer to freeze any expenditures for 30 days on those accounts that total the remaining $85 million of the $133 million deficit.

3.Instruct the Superintendent, the Chief Financial Officer, and the Budget and Financial Services Office to report back to the Board within 30 days or earlier with a status on the restoration of State funds to the District budget.

4.Instruct the District's Office of Legislation to advocate on behalf of the District at the State Legislature to restore the funds that were eliminated by the State.

Ms. Korenstein seconded the motion.

After discussion Mr. Huizar amended his substitute motion:

l. Authorize the Superintendent to make the following budget cuts as indicated

in his budget memorandum totaling $48 as a floor, and that as the Board proceeds with the discussion of the remainder items additions be made as appropriate:

Item Description Amount
1 Reduction in Information Technology $5 Million
2 Reorganization Program Funds $1
3 Reduce Non School Accounts (4000, 5000, 6000) $15 Million
4 Reduce Administered Costs $25 Million
8 Freeze Non School Positions $2

2.Instruct the Superintendent, the Budget and Financial Office, and the Chief Financial Officer to freeze any expenditures for 30 days on those accounts that total the remaining $85 million of the $133 million deficit.

3 2. Instruct the Superintendent, the Chief Financial Officer, and the Budget and Financial Services Office to report back to the Board within 30 days or earlier with a status on the restoration of State funds to the District budget, and recommendations from the Superintendent on proposed cuts, if necessary.
.

4 3.Instruct the District's Office of Legislation to advocate on behalf of the District at the State Legislature to restore the funds that were eliminated by the State.

Ms. Korenstein seconded the substitute motion.

After discussion, it was agreed to take additional items from the proposed Superintendent's List of Reductions to add to Section 1 of Mr. Huizar's substitute motion.

Ms. Canter moved the following addition to Mr. Huizar's motion:

Item Description Amount

10 EBIC Rebudgeting - Medical Funds $7 Million

Ms. Hayes seconded the motion, which on roll call was adopted 5 ayes, 1 no, Mr. Tokofsky.
Mr. Huizar was absent.

Mr. Lansing moved the following addition to Mr. Huizar's motion:

Item Description Amount

7 Maintenance Budget Adjustment $1.6 Million

Ms. Hayes seconded the motion, which on roll call was adopted 4 ayes, 3 noes, Ms. Hayes,
Mr. Huizar, and Mr. Tokofsky.

Mr. Lansing moved the following addition to Mr. Huizar's motion:

Item Description Amount

9 Resource Specialist Teacher (RST) Aides Staffing $3.4 Million
Adjustment

Ms. Hayes seconded the motion, which on roll call failed 6 noes, 1 aye, Mr. Lansing.

Ms. Korenstein moved the following addition to Mr. Huizar's motion:

Item Description Amount

3 Reduce Non School Accounts (4000, 5000, 6000) $15 20 Million

(Expand by $5 Million)
After discussion, the amendment was withdrawn.

Ms. Canter moved the following addition to Mr. Huizar's motion:

Item Description Amount

5 Reduce School Accounts (4000, 5000, 6000) $44 5 Million

(Reduce by $39 Million)

Ms. Hayes seconded the motion. After discussion, the maker and seconder withdrew the amendment.

Mr. Tokofsky moved to amend the motion by adding Item C- 2, Public Information, in Section C, for a cut of $l.6 million. Ms. Korenstein seconded the motion. After discussion, the maker and seconder withdrew the amendment.

Mr. Huizar added the following to his substitute motion:

4.The Superintendent shall advise all local districts and schools to reduce spending in Accounts 4000, 5000, and 6000 on a pro rated basis such that the proposed $44 million reduction may be adopted at a future date such that it will not cause a disproportionate reduction in spending after such a reduction is adopted.

Ms. Korenstein accepted it as a friendly amendment.

The final motion reads:

l. Authorize the Superintendent to make the following budget cuts as indicated

in his budget memorandum and that as the Board proceeds with the discussion of the remainder items additions be made as appropriate:

Item Description Amount
1 Reduction in Information Technology $5 Million
2 Reorganization Program Funds $1
3 Reduce Non School Accounts (4000, 5000, 6000) $15 Million
4 Reduce Administered Costs $25 Million
7 Maintenance Budget Adjustment $1.6 Million
8 Freeze Non School Positions $2
10 EBIC Rebudgeting - Medical Funds $7 Million

2. Instruct the Superintendent, the Chief Financial Officer, and the Budget and Financial Services Office to report back to the Board within 30 days or earlier with a status on the restoration of State funds to the District budget, and recommendations from the Superintendent on proposed cuts, if necessary.

3.Instruct the District's Office of Legislation to advocate on behalf of the District at the State Legislature to restore the funds that were eliminated by the State.

4.The Superintendent shall advise all local districts and schools to reduce spending in Accounts 4000, 5000, and 6000 on a pro rated basis such that the proposed $44 million reduction may be adopted at a future date such that it will not cause a disproportionate reduction in spending after such a reduction is adopted.

On roll call, the substitute motion as amended was adopted unanimously, 7 ayes.

On motion by Ms. Korenstein, seconded by Ms. Canter, the meeting was adjourned by general consent at 1:44 p.m.


APPROVED BY THE BOARD ON: February 12, 2002




__________________________________ ____________________________________
CAPRICE YOUNG JEFFERSON CRAIN
PRESIDENT EXECUTIVE OFFICER OF THE BOARD