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districts. As the revenue has been cut year after year, the state has also been holding on to those revenues for longer periods of time. At our last board meeting, PUSD board passed a TRANs (Tax and Revenue Anticipation Note) for about $15M to offset what the state will be doing in regards to deferrals. Ms. Cazares shared how the deficit factor can be calculated and is included in the actual proposal that hits our district at about$400K. What if the taxes pass or they don't pass? The Governor told us what he proposes to do if the taxes pass, but hasn't shared with us if they don't pass. We have to come up with scenarios if this proposal doesn't hold true. She said that school districts use Dartboard. The purpose of the School Services of California, Inc.'s (SSC) Dartboard is to provide planning factors and recommendations for school agencies in California. The SSC Dartboard is revised several times each year to reflect changes in the State Budget and other factors. Their estimate was about $330/ADA, which was not based on any proposal anywhere. They have taken what would be the drop in the minimal guarantee for Prop. 98, which is about $2.3B, divided it by the state wide ADA of $6.2M to come up with $330/ADA. The Governor has not proposed this anywhere, no one has released anything, and it's a mathematical figure. In PUSD, we used the $371/ADA, and assumed the $400K drop for the COLA, which is about $28/ADA, so we have assumed $399/ADA reduction in revenue for our district. She explained OPEB (Other Post-Employment Benefits) Liability, which is about $674K/year. This is the third year in which we might have made a contribution. We made a contribution in the first year of zero, 50% in the second and third year and our goal is to make a 100% contribution in the upcoming fiscal year. OPEB can be described as "any benefit other than pension". At the request of Trustee Grant, she explained state reductions of the district and reminded everyone that the current fiscal year approved reductions of about$8.2M, which included $5.2M or concessions from all employee groups. The year before that about $11.2M was cut, which $1.2M came from categorical programs, such as Adult Education, which has been hit significantly. We currently flex or take about 80% of the revenue that is generated from the Adult Ed Programs for our adult population and are using them for K-12. Vice Mayor Cook-Kallio pointed out that some of these Adult Programs are offered to students who have not fulfilled requirements in their secondary schools. Ms. Cazares continued to review PUSD's Budget Solutions and highlighted three areas: reduce spending by cuts to programs and service of $3.5M and negotiated employee concessions. To enhance revenues by fundraising campaigns, which $660K was raised and were able to restore positions that were eliminated. We will be using our undesignated reserve of $1.9M as well as our Federal Education Jobs Act Funds of$2.7M and State Fiscal Stabilization Funds of$700K. Ms. Cazares highlighted the Fundraising Campaign and the positions that were restored, such as Technology Specialists at the Elementary and Middle School levels, and noted they will not have this funding for next year. She highlighted the next steps would be: we are currently in negotiations for concessions from our employee groups, the parcel tax election that's coming up in May, fundraising campaigns for the band/string position that was cut, plus CORE is in the planning stages, the May Revise or Budget Act and the Election and the tax extensions which will now get pushed to November from June. Superintendent Ahmadi noted that if the district hadn't been so careful and spent our undesignated reserves in October, we would have been in a much worse position. Trustee Bowser commented that one of the difficult things we did was cut the remedial programs for elementary students who need the supplemental instruction so they could have success during the regular school year. He shared concerns about the at risk students who might suffer the most from these cuts. Trustee Laursen noted that it's estimated that $600-700 per student could be cut, which we have planned for $400 per student, with maybe adding approximately another $300. She shared how the Legislative Analyst Office (LAO) has suggested closing schools eight weeks early. We have no idea what will come out of Sacramento, but are working on the plan to place the district in the best possible position we can with the information that we receive and don't control at this time. Councilmember McGovern shared that when she was on the PUSD school board they worked hard for long term stable funding for education, however, it is repeating itself year after year. She Joint City Council and PUSD Board Minutes Page 4 of 7 March 28, 2011