1. Joint City Council & Board of Education Meeting
March 4, 2019
Joint City Council & Board of Education Meeting
Leslie Barnes, Chief Business Officer

2. Our Children • Learning Today • Leading Tomorrow
Measure J
Thank you to the City Council and voters for the funding opportunity provided through Measure J
Measure J funds will provide:
Greater Fiscal Stability
Continuity of Programs that attract and retain students
Allow for innovative student programs in the future
Last we spoke I was directed to work with ELT and other staff members to create a categorized list of options for the use of Measure J funds.
The following priority list was compiled using the input of ELT and extended ELT, which includes department directors.
The first two items were a priority of staff, the Board and the City Council members
It is essential that we maintain our 3% reserve requirement in all three years in order to remain fiscal solvency and independence.
The District is deficit spending in large part due to declining enrollment and ADA. The use if Measure J funds for unanticipated losses is essential to maintaining our required reserves
There are some position included in the fiscal stabilization plan that will not actually result in reduced costs if eliminated, such as the $750,000 reduction for Special ED positions, as well as positions that will be needed for new grant funding received by the District. Therefore, it is recommended that this category be included to allow for changes to the fiscal stabilization plan in order to either free up general fund or LCAP funds to be shifted back to schools sites.
Each year the State adds more unfunded mandates to Districts. This category would allow for one-time mandated expenditures to be paid from Measure J. One such mandate is textbook adoptions, which are very expensive. Rather than delay these adoptions, these funds could be used to offset expenses that cannot be fully paid through restricted lottery funds.
Our Children • Learning Today • Leading Tomorrow

3. Our Children • Learning Today • Leading Tomorrow
Measure J
Fiscal Stabilization
Fiscal Solvency remains the District’s first priority
$10.1 million in budget reductions will be implemented throughout this year and next
County has approved District’s Positive Certification of its First Interim Report
It is anticipated that the same will be true of the Second Interim Report
Last we spoke I was directed to work with ELT and other staff members to create a categorized list of options for the use of Measure J funds.
The following priority list was compiled using the input of ELT and extended ELT, which includes department directors.
The first two items were a priority of staff, the Board and the City Council members
It is essential that we maintain our 3% reserve requirement in all three years in order to remain fiscal solvency and independence.
The District is deficit spending in large part due to declining enrollment and ADA. The use if Measure J funds for unanticipated losses is essential to maintaining our required reserves
There are some position included in the fiscal stabilization plan that will not actually result in reduced costs if eliminated, such as the $750,000 reduction for Special ED positions, as well as positions that will be needed for new grant funding received by the District. Therefore, it is recommended that this category be included to allow for changes to the fiscal stabilization plan in order to either free up general fund or LCAP funds to be shifted back to schools sites.
Each year the State adds more unfunded mandates to Districts. This category would allow for one-time mandated expenditures to be paid from Measure J. One such mandate is textbook adoptions, which are very expensive. Rather than delay these adoptions, these funds could be used to offset expenses that cannot be fully paid through restricted lottery funds.
Our Children • Learning Today • Leading Tomorrow

4. School District Reporting and Fiscal Oversight
Districts are required to report financial status four times a year
July 1- Adopted Budget
Dec 15th – First Interim Report
March 15th – Second Interim Report
Sept 15th - Unaudited Actuals Report
Reports are reviewed by LACOE and submitted to the State
All reports except Unaudited Actuals include Multi-Year projections with reserve requirements for all three years
Last we spoke I was directed to work with ELT and other staff members to create a categorized list of options for the use of Measure J funds.
The following priority list was compiled using the input of ELT and extended ELT, which includes department directors.
The first two items were a priority of staff, the Board and the City Council members
It is essential that we maintain our 3% reserve requirement in all three years in order to remain fiscal solvency and independence.
The District is deficit spending in large part due to declining enrollment and ADA. The use if Measure J funds for unanticipated losses is essential to maintaining our required reserves
There are some position included in the fiscal stabilization plan that will not actually result in reduced costs if eliminated, such as the $750,000 reduction for Special ED positions, as well as positions that will be needed for new grant funding received by the District. Therefore, it is recommended that this category be included to allow for changes to the fiscal stabilization plan in order to either free up general fund or LCAP funds to be shifted back to schools sites.
Each year the State adds more unfunded mandates to Districts. This category would allow for one-time mandated expenditures to be paid from Measure J. One such mandate is textbook adoptions, which are very expensive. Rather than delay these adoptions, these funds could be used to offset expenses that cannot be fully paid through restricted lottery funds.
Our Children • Learning Today • Leading Tomorrow

5. School District Reporting and Fiscal Oversight
External Audit
Each year an external financial audit is conducted of all funds.
Reviewed by LACOE and submitted to the State
State and Federal Audits
Every three years Districts are subject to audits from the State and Federal Governments.
Review of all state and federal categorical programs for compliance
Last we spoke I was directed to work with ELT and other staff members to create a categorized list of options for the use of Measure J funds.
The following priority list was compiled using the input of ELT and extended ELT, which includes department directors.
The first two items were a priority of staff, the Board and the City Council members
It is essential that we maintain our 3% reserve requirement in all three years in order to remain fiscal solvency and independence.
The District is deficit spending in large part due to declining enrollment and ADA. The use if Measure J funds for unanticipated losses is essential to maintaining our required reserves
There are some position included in the fiscal stabilization plan that will not actually result in reduced costs if eliminated, such as the $750,000 reduction for Special ED positions, as well as positions that will be needed for new grant funding received by the District. Therefore, it is recommended that this category be included to allow for changes to the fiscal stabilization plan in order to either free up general fund or LCAP funds to be shifted back to schools sites.
Each year the State adds more unfunded mandates to Districts. This category would allow for one-time mandated expenditures to be paid from Measure J. One such mandate is textbook adoptions, which are very expensive. Rather than delay these adoptions, these funds could be used to offset expenses that cannot be fully paid through restricted lottery funds.
Our Children • Learning Today • Leading Tomorrow

6. Prioritized Funding Categories
Fiscal Stabilization
Increase or maintain District Reserves
State requires 3% Reserve for Economic Uncertainty in current and two subsequent years
District’s reserve levels as of First Interim (December 2018): % % %
Last we spoke I was directed to work with ELT and other staff members to create a categorized list of options for the use of Measure J funds.
The following priority list was compiled using the input of ELT and extended ELT, which includes department directors.
The first two items were a priority of staff, the Board and the City Council members
It is essential that we maintain our 3% reserve requirement in all three years in order to remain fiscal solvency and independence.
The District is deficit spending in large part due to declining enrollment and ADA. The use if Measure J funds for unanticipated losses is essential to maintaining our required reserves
There are some position included in the fiscal stabilization plan that will not actually result in reduced costs if eliminated, such as the $750,000 reduction for Special ED positions, as well as positions that will be needed for new grant funding received by the District. Therefore, it is recommended that this category be included to allow for changes to the fiscal stabilization plan in order to either free up general fund or LCAP funds to be shifted back to schools sites.
Each year the State adds more unfunded mandates to Districts. This category would allow for one-time mandated expenditures to be paid from Measure J. One such mandate is textbook adoptions, which are very expensive. Rather than delay these adoptions, these funds could be used to offset expenses that cannot be fully paid through restricted lottery funds.
Our Children • Learning Today • Leading Tomorrow

7. Impact of Declining Enrollment
Main cause of reduction in reserves is deficit spending due to declining enrollment
Cannot reduce staff at the same rate as reduction in students
Decline is districtwide and not tied to a particular grade level
Very difficult to maintain class size ratios in a declining enrollment environment
Last we spoke I was directed to work with ELT and other staff members to create a categorized list of options for the use of Measure J funds.
The following priority list was compiled using the input of ELT and extended ELT, which includes department directors.
The first two items were a priority of staff, the Board and the City Council members
It is essential that we maintain our 3% reserve requirement in all three years in order to remain fiscal solvency and independence.
The District is deficit spending in large part due to declining enrollment and ADA. The use if Measure J funds for unanticipated losses is essential to maintaining our required reserves
There are some position included in the fiscal stabilization plan that will not actually result in reduced costs if eliminated, such as the $750,000 reduction for Special ED positions, as well as positions that will be needed for new grant funding received by the District. Therefore, it is recommended that this category be included to allow for changes to the fiscal stabilization plan in order to either free up general fund or LCAP funds to be shifted back to schools sites.
Each year the State adds more unfunded mandates to Districts. This category would allow for one-time mandated expenditures to be paid from Measure J. One such mandate is textbook adoptions, which are very expensive. Rather than delay these adoptions, these funds could be used to offset expenses that cannot be fully paid through restricted lottery funds.
Our Children • Learning Today • Leading Tomorrow

8. Prioritized Funding Categories
Continuity of Programs
The District has been successful in implementing programs that are retaining and attracting students to PUSD
Signature programs
International Baccalaureate Program
Dual Language Immersion Program
STEM/STEAM Magnets
Visual and Performing Arts Programs
Math Academy
International Academy
1:1 Chromebook Initiative
5. Signature programs are an important aspect our schools in providing parent choice. They are also an essential part of our grad requirements for our students.
The state barely provides enough funds for “core” educational programs. Therefore, maintaining these programs is costly and essentially unfunded by the state.
Moving the additional cost for these programs to Measure J will allow us to focus our state funding on “core” academic programs and to provide better equity among site for such expenditures.
Please note that the 1:1 iPad initiative is listed under this category as well, since it represents an additional expense to our “core” academic program and is not funded by the state
6. Each year the district is successful in receiving grant funding both from the state and through local sources such as PEF
Staff is in the process of quantifying these grant losses and prioritizing those that we may wish to consider funding through Measure J. In some cases this may represent bridge funding until additional grants can be obtained.
Deferred Maintenance has been placed on the list as well.
In the District must increase its contribution to RRM to amount equal to 3% of its general fund expenditures. This equates to an addition of approximately $1.6 million for routine maintenance. These funds are already included in our out year budget projections. However, we no longer get matching funds for any contributions to a deferred maintenance fund. Inclusion of this category will allow the District to pay for one-time deferred maintenance expenditures for our school sites.
Our Children • Learning Today • Leading Tomorrow

9. Our Children • Learning Today • Leading Tomorrow
Signature Programs
Districts are not sufficiently funded by the State to run such programs
They require additional staff, training, supplies and equipment
They are over and above the regular academic requirements
Shifting the cost of these programs to Measure J allows PUSD to provide all sites with additional funds for their general academic programs
5. Signature programs are an important aspect our schools in providing parent choice. They are also an essential part of our grad requirements for our students.
The state barely provides enough funds for “core” educational programs. Therefore, maintaining these programs is costly and essentially unfunded by the state.
Moving the additional cost for these programs to Measure J will allow us to focus our state funding on “core” academic programs and to provide better equity among site for such expenditures.
Please note that the 1:1 iPad initiative is listed under this category as well, since it represents an additional expense to our “core” academic program and is not funded by the state
6. Each year the district is successful in receiving grant funding both from the state and through local sources such as PEF
Staff is in the process of quantifying these grant losses and prioritizing those that we may wish to consider funding through Measure J. In some cases this may represent bridge funding until additional grants can be obtained.
Deferred Maintenance has been placed on the list as well.
In the District must increase its contribution to RRM to amount equal to 3% of its general fund expenditures. This equates to an addition of approximately $1.6 million for routine maintenance. These funds are already included in our out year budget projections. However, we no longer get matching funds for any contributions to a deferred maintenance fund. Inclusion of this category will allow the District to pay for one-time deferred maintenance expenditures for our school sites.
Our Children • Learning Today • Leading Tomorrow

10. Continuity of Programs
Restoration of Fiscal Stabilization Plan (FSP) Reductions
As we implement the FSP it may be necessary to restore some reductions
If there are unforeseen increases elsewhere due to reduction
Harms programmatic outcomes
Restore expiring grant funding
Short-term bridge until funding can be identified or restored
5. Signature programs are an important aspect our schools in providing parent choice. They are also an essential part of our grad requirements for our students.
The state barely provides enough funds for “core” educational programs. Therefore, maintaining these programs is costly and essentially unfunded by the state.
Moving the additional cost for these programs to Measure J will allow us to focus our state funding on “core” academic programs and to provide better equity among site for such expenditures.
Please note that the 1:1 iPad initiative is listed under this category as well, since it represents an additional expense to our “core” academic program and is not funded by the state
6. Each year the district is successful in receiving grant funding both from the state and through local sources such as PEF
Staff is in the process of quantifying these grant losses and prioritizing those that we may wish to consider funding through Measure J. In some cases this may represent bridge funding until additional grants can be obtained.
Deferred Maintenance has been placed on the list as well.
In the District must increase its contribution to RRM to amount equal to 3% of its general fund expenditures. This equates to an addition of approximately $1.6 million for routine maintenance. These funds are already included in our out year budget projections. However, we no longer get matching funds for any contributions to a deferred maintenance fund. Inclusion of this category will allow the District to pay for one-time deferred maintenance expenditures for our school sites.
Our Children • Learning Today • Leading Tomorrow

11. Other Priorities and Projects Benefiting Students
It is anticipated that the first two priorities of Fiscal Stabilization and Program Continuity will be used for the budget cycle
In the future, other funding priorities or projects benefiting PUSD students might be identified for use of Measure J funds
5. Signature programs are an important aspect our schools in providing parent choice. They are also an essential part of our grad requirements for our students.
The state barely provides enough funds for “core” educational programs. Therefore, maintaining these programs is costly and essentially unfunded by the state.
Moving the additional cost for these programs to Measure J will allow us to focus our state funding on “core” academic programs and to provide better equity among site for such expenditures.
Please note that the 1:1 iPad initiative is listed under this category as well, since it represents an additional expense to our “core” academic program and is not funded by the state
6. Each year the district is successful in receiving grant funding both from the state and through local sources such as PEF
Staff is in the process of quantifying these grant losses and prioritizing those that we may wish to consider funding through Measure J. In some cases this may represent bridge funding until additional grants can be obtained.
Deferred Maintenance has been placed on the list as well.
In the District must increase its contribution to RRM to amount equal to 3% of its general fund expenditures. This equates to an addition of approximately $1.6 million for routine maintenance. These funds are already included in our out year budget projections. However, we no longer get matching funds for any contributions to a deferred maintenance fund. Inclusion of this category will allow the District to pay for one-time deferred maintenance expenditures for our school sites.
Our Children • Learning Today • Leading Tomorrow

12. As Discussed in the Ad Hoc Committee
Timeline & Process
As Discussed in the Ad Hoc Committee
District will provide the City Council with a proposal for use of Measure J funds for the coming year
The District will report actual expenditures at the annual Joint City Council and Board of Education meeting in March
MOU extension needed by April of each year in order to include in the multi-year projection of the District’s Adopted Budget
5. Signature programs are an important aspect our schools in providing parent choice. They are also an essential part of our grad requirements for our students.
The state barely provides enough funds for “core” educational programs. Therefore, maintaining these programs is costly and essentially unfunded by the state.
Moving the additional cost for these programs to Measure J will allow us to focus our state funding on “core” academic programs and to provide better equity among site for such expenditures.
Please note that the 1:1 iPad initiative is listed under this category as well, since it represents an additional expense to our “core” academic program and is not funded by the state
6. Each year the district is successful in receiving grant funding both from the state and through local sources such as PEF
Staff is in the process of quantifying these grant losses and prioritizing those that we may wish to consider funding through Measure J. In some cases this may represent bridge funding until additional grants can be obtained.
Deferred Maintenance has been placed on the list as well.
In the District must increase its contribution to RRM to amount equal to 3% of its general fund expenditures. This equates to an addition of approximately $1.6 million for routine maintenance. These funds are already included in our out year budget projections. However, we no longer get matching funds for any contributions to a deferred maintenance fund. Inclusion of this category will allow the District to pay for one-time deferred maintenance expenditures for our school sites.
Our Children • Learning Today • Leading Tomorrow

13. Our Children • Learning Today • Leading Tomorrow
Questions & Comments
Our Children • Learning Today • Leading Tomorrow