President Caprice Young called the meeting to order at 10:12 a.m.

The following Members were present: Mr. José Huizar, Ms. Julie Korenstein, Mr. Mike Lansing, and President Caprice Young. Ms. Marlene Canter arrived at 10:19 a.m., Mr. David Tokofsky arrived at
l0:18 a.m., and Ms. Genethia Hudley Hayes arrived at10:41 a.m.

Superintendent Roy Romer was present.

Mr. Huizar led the Pledge of Allegiance.

Mr. Reynaldo Pecho representing the Financial Managers Association

Ms. Rosemarie Kelleher

Mr. Henry Poblete

Ms. Martha Calderon representing the Association of Pupil Services and Attendance Counselors (APSAC)

Ms. Lynda Feldman

Whereas, The Superintendent has proposed that $40 per student in the 2002-2003 fiscal year be held in reserve and included as part of the ending balance for the fiscal year;

Whereas, The Board of Education is committed to avoiding school site cuts wherever possible;

Resolved, That $40 per student from the 2002-03 fiscal year be held in reserve in school site budgets and carried over into the 2003-04 fiscal year until 30 days after the ending balances are reported and until 30 days after the State budget is adopted, whichever comes later;

Resolved further, That at that time, the $40 per student automatically be released to the school sites unless there is Board action removing the $40 per student from the school site; and be it finally

Resolved, That the school sites be cautioned that the State budget crisis is dire and that it is unlikely that the $40 will be released to the school sites.

Mr. Richard Sheehan, Special Counsel to the Board, expressed concern regarding the amendment.
Dr. Joseph Zeronian, Chief Financial Officer, Superintendent Romer, and Dr. Roger Rasmussen, Director of the Independent Analysis Unit, responded to questions from Board Members.

Roll call was held open pending the return of Board Members. The final vote was 4 ayes, 2 noes,
Ms. Canter, Ms. Korenstein. Mr. Lansing was absent.

President Young explained that the Board would be first considering the 2003-04 Preliminary Budget, Section 2, Proposed actions to Address the 2003-04 Shortfall. She allowed the Board Members an opportunity to ask questions of staff and to express their concerns regarding the budget.

Item A-1, Workers' Compensation Cost Efficiencies ­ $25 million Adopted

Mr. Huizar moved the Item. Ms. Canter seconded the motion.

Dr. Rasmussen, Dr. Zeronian, and Mr. Sheehan responded to questions from Board Members.

On roll call, the final vote was: 6 ayes,
1 no, Ms. Hayes
Item A-2, Delay 2003-04 Arts Program Expansion ­ $4.8 million Failed

Mr. Richard Burrows, Director of the Arts Education Branch, Dr. Zeronian, Superintendent Romer, and Senior Deputy Superintendent Dr. Maria Ott responded to questions from Board Members.

Ms. Canter moved the item. Ms. Hayes seconded the motion.

On roll call, the final vote was: 6 noes,
1 hold, Mr. Huizar

Item A-3, Delay 2003-04 Increase to Gardeners ­ $1.5 million Adopted

Ms. Canter moved the item. Ms. Hayes seconded the motion.

Mr. Bruce Kendall, Director of Maintenance and Operations, responded to question from Board Members.

On roll call, the final vote was: 7 ayes.

Item A-4, Delay 2003-04 Increase to AP-EIS ­ $9.4 million Failed

Ms. Hayes moved the item. Ms. Canter seconded the motion.

Ms. Donnalyn Jaque-Anton, Associate Superintendent of the Division of Special Education, and Superintendent Romer responded to questions from Board Members.

On roll call, the final vote was: 5 noes,
2 holds, Mr. Huizar, Ms. Korenstein

Item A-5, Legal Fees ­ $.4 million Adopted

Mr. Lansing moved the item. Mr. Huizar seconded the motion.

Mr. Michael Russell, Deputy General Counsel, Superintendent Romer, and Mr. Sheehan responded to questions by Board Members.

On roll call, the final vote was: 7 ayes

Items B-1, Staff Development Buyback Days ­ $31.9 million Postponed

Mr. Lansing moved the item. Ms. Canter seconded the motion.

At the request of staff, Items B-1, B-2, Deferred Maintenance ­ $26.3 million; and B-3, Undetermined State Categorical Reductions ­ $19.8 million were postponed until further information was received from the State.

Item C-1, Cost Efficiencies to be Identified ­ $15 million Hold

Board Members requested an itemized list of items.

This Item was placed on hold.

Item C-2, Reorganize Purchasing Functions ­ $.9 million Adopted

Mr. Lansing moved the item. Mr. Tokofsky seconded the motion.

On roll call, the final vote was: 7 ayes.

Item C-3, Purchase 30 Most Used Items from Warehouse ­ $2.5 million Adopted

Ms. Canter moved the item. Mr. Lansing seconded the motion.

Dr. Rasmussen commented on the effect of the item.

On roll call, the final vote was: 7 ayes

Item C-4, Consolidate Supplier Base ­ $3.7 million Adopted

Ms. Canter moved the item. Ms. Hayes seconded the motion.

Mr. Michael Eugene, Business Manager, responded to questions from Board Members.

On roll call, the final vote was: 7 ayes

Item C-5, Electronic Transfer of Health Benefits Data ­ $1 million Adopted

Ms. Hayes moved the item. Mr. Tokofsky seconded the motion.

Dr. Zeronian responded to questions from Board Members.

On roll call, the final vote was: 7 ayes.

Item C-6, Seek Alternate Funding for Interscholastic Athletics ­ $.7 million Hold

Ms. Hayes moved the item. Ms. Korenstein seconded the motion.

Mr. Price and Ms. Barbara Fiege, Coordinator of Interscholastic Athletics, responded to questions from Board Members.

On roll call, the final vote was: 4 holds, Ms. Canter, Ms. Korenstein, Mr. Tokofsky, Ms. Young
2 noes, Ms. Hayes, Mr. Huizar
1 aye, Mr. Lansing

Item C-7, National Board Certification Stipends-API Criteria ­ $1 million Adopted

Ms. Hayes moved the item. Ms. Canter seconded the motion.

Mr. Price, Ms. Kathleen Rattay, Director of the Professional Support and High School Reform Branch,
Mr. Sheehan, Dr. Zeronian, and Superintendent Romer responded to questions from Board Members.

On roll call, the final vote was: 5 ayes, Ms. Hayes, Mr. Huizar, Ms. Canter, Mr. Tokofsky, Mr. Lansing
1 no, President Young
1 hold, Ms. Korenstein

Item C-8, Reduction to Central Offices and Local Districts ­ $45 million Hold

Mr. Lansing moved the item. Mr. Tokofsky seconded the motion.

Mr. Lorenzo Tyner, Budget Director, Ms. Maria Reza, Assistant Superintendent of Student Health and Human Services, Superintendent Romer, Mr. Hector Madrigal, Director of Pupil Services, Dr. Ott,
Dr. Theodore Alexander, Associate Superintendent of the Specially Funded and Parent/Community Programs Division, and Mr. Eugene responded to questions from Board Member.

Following discussion and with the approval of the maker and seconder, the Board agreed to consider only the identified $32.8 million and to consider the balance once the reductions were identified

On roll call, the final vote was: 4 hold, Ms. Canter, Ms. Hayes, Mr. Huizar, Mr. Tokofsky
2 ayes, Ms. Korenstein, Mr. Lansing, President Young

Item C-9, 3-Day Management Furlough ­ $1.2 million Hold

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

At the request of the Superintendent, this item was placed on hold.

Item C-10, Estimated Savings from Field Supervision Reduction - $2 million Hold

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

Dr. Zeronian, Ms. Reza, Mr. Robert Collins, Local District C Superintendent, and Ms. Karen Maiorca, Director of District Nursing Services, responded to questions from Board Members.

On roll call, the final vote was: 3 noes, Ms. Canter, Ms. Hayes, Mr. Huizar
2 ayes, Ms. Canter, President Young
1 hold, Mr. Tokofsky
1 absent, Ms. Korenstein

Mr. Huizar moved that the meeting be adjourned. Ms. Canter seconded the motion, which by general consent was adopted. Ms. Korenstein was absent.

The meeting adjourned at 5:05 p.m.

APPROVED BY BOARD: June 24, 2003

______________________________________ ______________________________________
CAPRICE YOUNG JEFFERSON CRAIN
PRESIDENT EXECUTIVE OFFICER OF THE BOARD

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