President José Huizar called the meeting to order at 10:25 a.m.

The following Members were present: Ms. Marlene Canter, Ms. Julie Korenstein, Mr. Mike Lansing,
Mr. Jon Lauritzen, Mr. David Tokofsky, and President José Huizar. Ms. Marguerite Poindexter LaMotte arrived at 10:43 a.m.

Superintendent Romer was present.

Ms. Canter led the Pledge of Allegiance.

Ms. Patty Davis representing Teamster Local 572

Mr. Matthew Sharp representing the California Food Policy Advocates

Ms. Rosa Soto

Ms. Connie Moreno representing the California State Employees Association

Ms. Canter moved that the report be adopted. Mr. Lauritzen seconded the motion.

Mr. Michael Eugene, Business Manager; Ms. Marilyn Wells, Director of Food Services; Superintendent Romer; Mr. Tim Buresh, Chief Operating Officer; Ms. Megan Klee, Chief Information Officer, responded to questions from Board Members.

Mr. Tokofsky moved the following amendment:

Withdraw Item VI and allow the item to return for Board consideration after a staff presentation of the five-year plan of the Cafeteria Fund and other Cafeteria issues to the Audit, Business and Technology Committee at its July meeting.

On roll call, the amendment was adopted, 4 ayes, 3 noes, Ms. Canter, Mr. Lansing, President Huizar.

By general consent, the report as amended was adopted. Mr. Lansing was absent.

April Deficit ($16)
Loss of State Flexibility ($70)
Deficit ($86)

A. Other Increases to the Deficit
1) Reserve for Benefit Costs ($25)
2) School Site Positions ($ 4)

Revised Deficit ($115)

B. May Revise and Adjustments
1) Additional Income - Cost of Living (COLA) $19
2) Third Interim Adjustment $12
3) Projected Available Ending Balance $10

Revised Deficit $(74)

C. Budget Balancing Proposals
1) Improved Attendance Revenue $14
2) Substitute Account Budget Management $ 7
3) Local District Budget Savings $ 6
4) Savings in the Child Development Program $ 5
5) Savings in the Options Program $ 5
6) Savings in the Arts Program $ 3
7) Reduction to Central Office Carryovers $ 2
8) Categorical Balances (HPSG) $ 2
9) Other Program Reductions and Efficiencies $ 7

Revised Deficit $23

D. Options Requiring Legislation
1) Restricted Maintenance (SB409) $14
2) State Equalization Funding $ 9

Surplus/(Deficit) $ 0

Ms. Janelle Kubinek, Budget Consultant to the Board, provided an overview of the 2004-05 budget, options in regard to the Superintendent's budget, and options to be considered in the future.
The following speakers addressed the Board on the budget:

Ms. Cheryl Jones

Ms. Cathy Mechor

Ms. Jennifer Piñon in place of Rockell Stiles

Ms. Inez Morris

Mr. Francisco Torrero

Ms. Ruth Sarnoff

Mr. Lauritzen moved that the report be adopted. Mr. Lansing seconded the motion.

President Huizar indicated that the Board would be taking action on Items listed under C and D.

Mr. Tyner; Superintendent Romer; Mr. Richard Sheehan, Special Counsel to the Board; Ms. Donalyn Jaque-Anton, Associate Superintendent of the Division of Special Education; Mr. Tim Buresh, Chief Operating Officer; Ms. Carmen Schroeder, Assistant Superintendent of the Early Childhood Education Division; Dr. Roger Rasmussen, Acting Deputy Director of Budget Services Branch; Mr. Merle Price, Deputy Superintendent; Mr. James McConnell, Chief Facilities Executive; Mr. James Delker, Acting Deputy Chief Facilities Executive, Existing Facilities; Mr. Bruce Kendall, Director of Maintenance and Operations; Ms. Maria Reza, Assistant Superintendent of Student Health and Human Services; and
Ms. Deborah Hirsh, Chief Human Resources Officer, responded to questions from Board Members.

On roll, the report was adopted 6 ayes, with the following exceptions:

Ms. Korenstein voted no on D-1

Ms. LaMotte voted no on C-2, C-6, C-8, and D-1

Mr. Tokofsky voted no on C-1, C-3, C-6, and C-8

President Huizar voted no on Health and Welfare $500,000 and Early Education Center $160,000 contained in B-2, and C-6

Mr. Price explained the effect of the renorming.

President Huizar requested that action on Mr. Tokofsky's motion be postponed until after consideration of Mr. Tokofsky's amendment (noticed May 25, 2004) and Mr. Lauritzen's amendment (Noticed June 22, 2004).

During discussion of Report No. 379 - 03/04 (Direct), Mr. Tokofsky's motion regarding renorming failed.

Mr. Tokofsky moved the following amendment to the budget reductions:

1. Reduce overtime by 30% and return savings to the reserve for economic uncertainties.

Ms. LaMotte seconded the motion.

Mr. Buresh, Mr. Tyner, and Superintendent Romer responded to questions from Board Members.

On roll call, Item 1 failed, 3 ayes, Ms. LaMotte, Mr. Lauritzen, Mr. Tokofsky, 2 noes, Ms. Korenstein, President Huizar. Ms. Canter and Mr. Lansing were absent.

Mr. Tokofsky moved the following amendment to the budget reductions:

2. Reduce 10 percent of unfilled positions and return savings to the reserve for economic uncertainties.

Ms. Korenstein seconded the motion, but requested that the 10 percent come from unfilled non-school positions. Mr. Tokofsky accepted the change.

Superintendent Romer, Mr. Sheehan, Mr. Price, Dr. Maria Ott, Senior Deputy Superintendent, and
Ms. Hirsh responded to questions from Board Members.

Following discussion, Ms. Korenstein withdrew her second. The motion died for lack of a second.

Mr. Tokofsky moved:

3.Investigate the sale price of all non-school and closed school sites and provide the potential revenues to the Board in closed session.

Ms. LaMotte seconded the motion, which on roll call failed, 3 ayes, Ms. LaMotte, Mr. Tokofsky, President Huizar, 2 noes, Ms. Korenstein, Mr. Lauritzen. Ms. Canter and Mr. Lansing were absent.

Mr. Tokofsky moved:

4.Investigate the sale of portions of a school's property when that school's density is less than the District median density of 170 students per acre and present findings to the Board in closed session.

The motion failed for lack of a second.

Mr. Tokofsky moved:

5. Reduce classified personnel costs by $100,000 and return savings to balance the budget.

Ms. LaMotte seconded the motion, which on roll call failed, 3 ayes, Ms. LaMotte, Mr. Lauritzen,
Mr. Tokofsky, 2 noes Ms. Korenstein, President Huizar. Ms. Canter and Mr. Lansing were absent.

Mr. Tokofsky moved:

6. Reduce consultant contracts by $3 million and return savings to balance the budget.

Mr. Huizar seconded the motion, which on roll call was adopted, 5 ayes. Ms. Canter and Mr. Lansing were absent.

Mr. Tokofsky moved:

7. Reduce the number of non-school site employees earning greater than $100,000 to save
$1 million and return savings to balance the budget.

Mr. Lauritzen seconded the motion.

Following discussion, Mr. Tokofsky agreed to withdraw Items 7 and 8:

8. Pursue a State Board of Education waiver for the required 3% match for deferred maintenance
to continue the 2% match. Return the resulting $60 million savings into the reserve for
economic uncertainties.

Resolved, That the Board of Education of the City of Los Angeles directs the Superintendent to reduce as nearly as possible all redundancies in the central administrative structure in such areas as professional development, conference expenses, employees making over $100,000 and any and all other redundancies in central administration to obtain a reduction of at least $8 million; and be it

Resolved further, That savings resulting from this motion be applied to the current budget deficit first, and any additional savings be directed to school sites; and be it finally

Resolved, That the Board of Education establishes under its direction an independent analysis of the District's central and local district administrative structure. The analysis will at a minimum investigate the efficiency and the effectiveness of the central and local district administrative structures. The District's bargaining units and parents will be a party to this analysis.

Superintendent Romer requested that the Board consider each of the "resolves" separately.

Mr. Tokofsky moved to recess into Closed Session. Ms. LaMotte seconded the motion.

Mr. Sheehan and Mr. Crain indicated that the Board would have to identify the need for Closed Session.

President Huizar advised against recessing into Closed Session. Mr. Tokofsky withdrew his motion,
Ms. LaMotte withdrew her second.

Ms. Korenstein suggested reducing the portion of Mr. Lauritzen's motion concerning central office redundancies from $8 million to $5 million, the Superintendent's proposal for reducing Restricted Maintenance from $14 million to $6 million and restore the Superintendent's $3 million cut form the performing arts.

Mr. Crain indicated that to act on restoring the $3 million from the arts and the Restricted Maintenance change, the Board would have to vote to reconsider the budget item.

Following discussion and with the approval of the seconder, Mr. Lauritzen withdrew the last "resolved."

Ms. Korenstein moved to amend the second "resolved" by adding "including Item C-9" as follows:

Resolved further, That savings resulting from this motion be applied to the current budget deficit first, including Item C-9, and any additional savings be directed to school sites.

Ms. Korenstein called for the question. Ms. LaMotte seconded the motion, which on roll call was adopted, 5 ayes, 1 no, Mr. Tokofsky. Mr. Lansing was absent.

On roll call, the motion to amend Mr. Lauritzen's motion was adopted, 5 ayes, 1 no, Mr. Tokofsky.
Mr. Lansing was absent.

Ms. Korenstein called for the question. Ms. LaMotte seconded the motion, which on roll call was adopted, 5 ayes, 1 no, Mr. Tokofsky. Mr. Lansing was absent.

On roll call, the Mr. Lauritzen's motion as amended was adopted, 5 ayes, 1 no, Mr. Tokofsky.
Mr. Lansing was absent.

The motion as adopted reads as follows:

Resolved, That the Board of Education of the City of Los Angeles directs the Superintendent to reduce as nearly as possible all redundancies in the central administrative structure in such areas as professional development, conference expenses, employees making over $100,000 and any and all other redundancies in central administration to obtain a reduction of at least $8 million; and be it

Resolved further, That savings resulting from this motion be applied to the current budget deficit first, including Item C-9, and any additional savings be directed to school sites.

Mr. Tokofsky moved to remove $8 million for renorming. Ms. LaMotte seconded the motion, which
on roll call failed, 3 noes, Ms. Canter, Mr. Lauritzen, Mr. Huizar, 2 ayes, Ms. LaMotte, Mr. Tokofsky.
Ms. Korenstein and Mr. Lansing were absent.

On roll call, the report as amended was adopted, 5 ayes, 1 no, Mr. Tokofsky, and with the exception of Item D-1 on which Ms. Korenstein voted no. Mr. Lansing was absent.

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

The meeting adjourned at 4:39 p.m.

APPROVED BY BOARD: March 8, 2005

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

st