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

SPECIAL AUGMENTED BUSINESS, FINANCE, AUDIT AND TECHNOLOGY COMMITTEE
BUDGET WORKSHOP
9:30 a.m., Tuesday, May 15, 2001 - Board Room (H-160)

Board Members Present:
Ms. Caprice Young, Chairperson
Mr. Mike Lansing, Vice Chairperson
Mr. David Tokofsky
Ms. Valerie Fields
Ms. Genethia Hudley Hayes

External Members:
Ms. Carol Sharer, Chief Executive Officer, McKinley Marketing Partners
Mr. Sanford C. Sigoloff, Management Consultant, University of California Los Angeles, Anderson
School
Ms. Fredrika Taubitz, Executive Vice President and Chief Financial Officer,
Zenith National Insurance Company

Staff:
Mr. Roy Romer, Superintendent
Dr. Maria Ott, Deputy Superintendent, Educational Services
Mr. Allen Solomon, Chief Executive Officer
Dr. Theodore Alexander, Associate Superintendent, Specially Funded and Parent/Community
Programs
Ms. Maria Reza, Assistant Superintendent, Student Health and Human Services
Dr. Joseph Zeronian, Chief Financial Officer
Mr. Lorenzo Tyner, Budget Director, Budget Services and Financial Planning Division
Mr. Alan Tomiyama, Business Manager, Business Services Division
Mr. Mark Shrager, Deputy Budget Director, Budget Services Branch
Ms. Beth Louargand, Director, Budget Strategic Planning
Dr. Roger Rasmussen, Director, Independent Analysis Unit
Ms. Odille Hanson, Analyst, Independent Analysis Unit

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The meeting convened at 9:35 a.m.
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Ms. Young announced that the meeting today is to review and exchange dialog on the preliminary budget, and there will be limited public comment.

Dr. Zeronian gave an overview on the May revision of the Governor's Budget. He commented on several items that are significant to LAUSD:

Governor's Middle Grade Extended Year Initiative. This program, originally conceived, would have added six weeks to the middle school year, providing $150 million in the first year for all schools in the State and approximately $18 million to LAUSD. This amount was reduced in the Governor's budget by $35 million, which would bring to the District approximately $14 million in new money targeted for this purpose. This bill is not very popular with the Legislators and its status is questionable. €High Priority Students Block Grant Program. This bill is very significant to the District if it were to pass. The bill provides schools in the lowest two deciles of the Academic Performance Index with $175 per pupil for three years. Out of the $220 million designated for the Block Grant Program, the District will receive $73 million.
School Energy Cost Assistance. The State is putting $540.8 million in Proposition 98 General Fund settle-up funds to assist school districts with energy costs and giving school districts incentives to implement energy savings. The District's share will be $65 million.
One-time Expenditures from the Proposition 98 Reversion Account of more than $300

million. Significant expenditures from these funds include $268 million for prior-year K-12 reimbursable mandate claims. The District has approximately 35 programs that are reimbursable as mandated costs. The District received approximately $20 million in these

categories last year. These funds do not come in at 100 percent and are frequently late. In addition to these programs there are desegregation claims, Rodriguez claims, and Chanda Smith claims.

Dr. Zeronian commented that block grant, energy and reimbursable mandate claims are one-time money. He recommended not using this one-time money to off-set any shortfalls in the District's current budget.

LAUSD's 2001 - 2002 Preliminary Budget

Dr. Zeronian responded to questions raised by the Board Members at the April 28, 2001, Business, Finance, Audit and Technology (BFAT) Committee, Budget Workshop.

The discussion was interrupted to hear public comments.

PUBLIC COMMENT

The following individuals expressed their concerns:

Rosyln Levine, Pupil Services and Attendance (PSA) Counselor
Beverly Brown, California School Employees Association (CSEA)
Celia Ivan, Office Manager, Belvedere Children's Center
Latrice Brown, CSEA
Melissa Schoonmaker, PSA Counselor, Local District F

Dr. Zeronian was asked to clarify statements being made by the PSA counselors. He believes the speakers were referring to the $12 million in Local District redirection.

Gail Jaffey, President-Elect of the Association of PSA Counselors
Sylvia Perrea, PSA Counselor
Marcela Lucero, Parent Advisory Council, Berkeley Children's Center
Elaine Mirabel, PSA Counselor, Local District B

Ms. Reza was called upon to clarify the redirection of the $12 million in Local District funds.

The committee members continued their discussion on the budget. In a lengthy discussion, the committee reviewed the responses and raised questions on deferred maintenance, facilities, special education, the Governor's initiative on middle schools, Waterford reading plan, the textbook issue, the arts program, the technology department.

ADJOURNMENT

The meeting adjourned at 12:15 p.m.

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

Special Augmented Business, Finance, Audit and Technology (BFAT) Committee

BUDGET WORKSHOP
9:30 a.m., Tuesday, May 15, 2001 - Board Room (H-160)

Committee Members Committee Contact Person
Ms. Caprice Young, Chairperson Dr. Roger Rasmussen, Director
Mr. Mike Lansing, Vice Chairperson Independent Analysis Unit
Mr. David Tokofsky Tel: (213) 625-6091
Ms. Yvonne Perlberg Fax: (213) 687-7367
Ms. Carol Sharer
Mr. Sanford Sigoloff
Ms. Fredricka Taubitz

A G E N D A

COMMENTS, QUESTIONS AND ANSWERS 1. LAUSD's 2001 - 2002 Preliminary Budget

The Committee and District staff will present the District's 2001 - 2002 Preliminary Budget.

PUBLIC COMMENT

2. Public comments

Persons who wish to address the Committee may sign up at the meeting.

For more information on the Business, Finance, Audit and Technology Committee, go to:

http://www.lausd.k12.ca.us/bfat