President José Huizar called the meeting to order at 3:44 p.m.

The following Members were present: Ms. Marlene Canter, Ms. Julie Korenstein, Ms. Marguerite Poindexter LaMotte, Mr. Mike Lansing, Mr. Jon Lauritzen, Mr. David Tokofsky, and President José Huizar.

Superintendent Roy Romer was present.

Ms. Canter led the Pledge of Allegiance.

That the Superintendent be instructed to dissolve the eleven (11) Local Districts and create three (3) new divisions. The purpose of this new District administrative structure is to affect cost efficiencies and help the District better achieve its instructional goals. The three (3) Divisions will be: one (1) Elementary, one (1) Middle School, and one (1) Senior High School Division;

That the Superintendent be further directed to cut the Central District Administration enough to provide funding for the local schools (replacing the $50 per student cut from each school, returning to last year's counseling, psychiatric social workers, and nursing norms, and eliminating mid-year renorming); and

That the Superintendent and Board President organize a District-wide committee to study and recommend the implementation of a new administrative structure for the District that will result in greater cost efficiencies, help the District better achieve its instructional goals, and encourage greater parent/community involvement.

Whereas, The $50 per pupil cut imposed last year places a significant hardship on schools;

Whereas, Schools have been directed to apply the $50 per pupil cut to General Fund Unrestricted accounts, which total only a small portion of a school's budget;

Whereas, The limited number of accounts from which schools can cut further exacerbates the impact of the cuts;

Whereas, The acute nature of the budget crisis requires schools to have the greatest flexibility in making cuts;

Whereas, The District supplements certain General Fund Restricted (003) accounts with General Fund Unrestricted (001) dollars;

Whereas, Cuts to the aforementioned General Fund Restricted accounts in the amount of the encroachment on the General Fund Unrestricted Program can be applied to the District's 2004-05 deficit; and

Whereas, By allowing schools to apply a portion of the $50 per pupil cut to General Fund Restricted accounts that encroach upon the General Fund Unrestricted Program, the District will give schools much needed flexibility in creating their 2004-05 school budgets; now, therefore, be it

Resolved, That the Board of Education of the City of Los Angeles directs the Superintendent to work with schools and Local Districts to allow reductions in those General Fund Restricted accounts that encroach upon the General Fund Unrestricted Program, and

Resolved further, That the Board directs the Superintendent to return to the Board by June 30, 2004, with a summary report on school-site reductions in both restricted and unrestricted accounts for the 2004-05 school year.

The following speakers addressed the Board on Board of Education Report No. 287-03/04:

Mr. Francisco Torrero representing the Parent Collaborative

Mr. Carlos Prinzon

Ms. Connie Moreno representing the California School Employees Association

Mr.Mike O'Sullivan representing the Associated Administrators of Los Angeles

Mr. John Perez representing United Teachers Los Angeles

Mr. Bill Ring spoke to Mr. Lauritzen's motion.

Mr. Richard Sheehan, Special Counsel to the Board, stated that in reviewing tapes and action from the last meeting, no action could be taken on Mr. Lauritzen's motion or any other motions at this time.

Superintendent Romer and Mr. Sheehan responded to questions from Board Members.

Mr. Lauritzen moved to call a special meeting on Friday, May 14, at 4:45 p.m. to allow action on budget reduction proposals that may include administrative reorganization of the District and approval of this motion constitutes notice that any and all budget reduction proposals, alternatives, and options can be discussed and acted upon by the Board of Education of the City of Los Angeles at such meeting.

Ms. Korenstein seconded the motion.

Following discussion and with the consent of the seconder, Mr. Lauritzen withdrew his motion.

Superintendent Romer indicated that he would be presenting options to reduce the number of Local Districts and any cost savings.

Mr. Richard Knott, Controller, presented a report on the initial evaluation of the Governor's May budget revise. He noted that there will be an additional $275 million for K-12 education for the 2004-05 fiscal year and a higher cost of living adjustment, funding of all existing program growth, diminishing the revenue limit deficit, and committing money for revenue limit equalization aid to bring those school districts below the Statewide average up to par. He also added that the Governor's budget will provide money for the state match of the deferred maintenance contribution, instructional materials, and money for classroom and library materials.

Mr. John Mockler, Consultant to the Board, provided his views on the State budget.

Mr. Knott and Mr. Lorenzo Tyner, Budget Director, responded to questions from Board Members.

Following discussion, Board of Education Report No. 287-03/04 was postponed to the Regular Board meeting of May 25, 2004. Mr. Lauritzen's motion was postponed to the Regular Board Meeting of June 8, 2004, and Ms. Canter and Mr. Lansing's motion was postponed to the Regular Board Meeting of May 25, 2004.

Mr. Lauritzen moved again to call a special Board meeting on May 14, 2004, to consider his motion. Following discussion, Mr. Lauritzen withdrew his motion.

Mr. Huizar announced his intent to offer the following changes to Mr. Lauritzen's motion for action on
June 8, 2004:

Whereas, Over the last three fiscal years, the Los Angeles Unified School District has reduced its General Fund expenditures by approximately $1.3 billion dollars; and

Whereas, With the District facing a long term structural deficit, and the immediate need to reduce an additional $70-90 million in General Fund obligations prior to June 22, 2004, it is both appropriate and necessary to reorganize our Central Office and Local District administrative functions; now, therefore, be it

Resolved, That the Superintendent's proposed budget reductions for fiscal year 2004-05 (Board of Education Report No. 287-03/04) be amended as follows:

1.The Superintendent shall eliminate the eleven Local Districts and shall immediately prepare a plan for the reorganization of the District's administrative functions to be effective July 1, 2004, within the parameters set forth below.

b.The General Fund expenditures for the Local Districts for Fiscal Year 2004-05 shall be no more than $25 million in General Fund Unrestricted dollars, and no more than $35 million in Categorical (Non-school Specially Funded Program) dollars (which represents a 38 percent reduction in General Fund dollars and a 27 percent reduction in Categorical Fund dollars for the Local Districts from the current fiscal year 2003-04 appropriation). These General and Categorical Fund savings are to be redirected towards use at school sites. Further, to the extent possible, any personnel shifts associated with the reduction of General Fund and Categorical dollars shall be directed to school sites.

c.In such a re-organization of Local Districts, the Superintendent is instructed to emphasize and prioritize student academic achievement. The re-organized Local Districts may have within each District, branches that focus on grades K-5, Middle School, and High School.

d.In developing the new Local District structure, the Superintendent shall give consideration to ensure that local communities and feeder patterns remain intact, and that the new Local District structure encourages greater parental and community involvement in the Local Districts and school sites. To achieve this goal, the Superintendent is instructed to create a Parent Ombudsperson to resolve parental issues and concerns within each new Local District.

e.That in reorganizing the local districts, there be parity in the districts, and that the lowest performing districts not be paired with other low performing districts.

f.That there be a ceiling placed on the number of employees in each local district, and the levels on which the employees are paid.

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

The meeting adjourned at 6:25 p.m.

APPROVED BY BOARD: August 24, 2004

______________________________________ ______________________________________
JOSE HUIZAR JEFFERSON CRAIN
PRESIDENT EXECUTIVE OFFICER OF THE BOARD

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