Jun 26, 2024 Board Meeting

[00:00:08]

GOOD EVENING.

I'D LIKE TO CALL TO ORDER TODAY'S MEETING.

WEDNESDAY, JUNE 26TH.

REGULAR BOARD MEETING.

BUDGET STUDY SESSION.

I'D LIKE TO CALL TO ORDER.

[1.01 Roll Call]

BOARD PRESIDENT SANDRA SALAZAR HERE.

BOARD VICE PRESIDENT MARIANA PACHECO HERE.

BOARD CLERK DON GREENE.

DOCTOR. DON GREENE HERE.

TRUSTEE JAMES CODY BIRKEY, PRESENT.

TRUSTEE. ZURICH LEWIS PRESENT.

TRUSTEE. DOCTOR SHIN LIU TRUSTEE MARISA PEREZ.

STUDENT. TRUSTEE KATHIE LEE.

YEAR AND PRESIDENT.

SUPERINTENDENT PIERRO YEAR.

THANK YOU. NEXT ITEM 1.02 OUR PLEDGE OF ALLEGIANCE.

[1.02 Pledge of Allegiance]

MR.. RIGHT HAND OVER YOUR HEART. AND PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS.

ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

THANK YOU. TRUSTEE BIRKEY.

NEXT ITEM 1.03 AGENDA ORGANIZATION.

[1.03 Agenda Organization]

[1.04 Comments from the Audience]

1.05 REPORT AND COMMENTS FROM CONSTITUENT GROUPS.

[1.05 Reports and Comments from Constituent Groups]

[2.01 Quarterly Fiscal Status Report for the Quarter Ending March 31, 2024]

FOR WILL RECEIVE AND FILE.

[3.01 Resolution No. 24-0626A - Requesting Board of Supervisors of the County of Los Angeles to Establish Tax Rate for Measure CC Bonds of Cerritos Community College District Expected To Be Sold During Fiscal Year 2024-25, And Authorizing Necessary Actions In Connection Therewith]

ADMIN ITEM 3.01.

RESOLUTION NUMBER 24 06268.

REQUESTING BOARD OF SUPERVISORS OF THE COUNTY OF LA TO ESTABLISH TAX RATE FOR MEASURE CC BOND OF CERRITOS COMMUNITY COLLEGE DISTRICT EXPECTED TO BE SOLD DURING FISCAL YEAR 2024 TO 2025 AND AUTHORIZING NECESSARY ACTIONS IN CONNECTION THEREWITH.

THANK YOU, DOCTOR SALAZAR.

SO ESSENTIALLY, THIS IS FOR US TO BE ABLE TO BEGIN SELLING SOME OF THE BONDS THAT WE WERE AUTHORIZED BY THE BORDERS LAST ABOUT A YEAR AND A HALF.

NOW 22, IT'S GOING TO GO ALMOST TWO YEARS IN NOVEMBER.

AND IS REQUIRED BY THE COUNTY IN THE EVENT WE DECIDE TO SELL BONDS.

AT SOME POINT DURING THE NEXT YEAR TO CONTINUE OUR CONSTRUCTION PROCESS.

YEAH. SO REAL QUICK THE AUDITOR COMPTROLLER'S OFFICE REQUIRES US ANNUALLY, THEY SUBMIT US A DOCUMENT.

AND IT'S EITHER A CHECK YES, OR A CHECK.

NO. WHETHER OR NOT WE PLAN TO ISSUE BONDS IN THE FUTURE YEAR, THEY DO THAT AS A PRECURSOR SO THEY CAN LOOK AT THE TAX RATES ROLLS THAT WOULD THEY WOULD HAVE TO POTENTIALLY LEVY FOR THE YEAR SINCE WE INDICATED.

YES ON THAT.

SO BECAUSE WE DO PLAN TO ISSUE SOMETIME IN THE NEW FISCAL YEAR COMING UP BECAUSE OF ALL THE PROJECTS THAT WE HAVE GOING ON, IT REQUIRES US TO DO A RESOLUTION AUTHORIZING US TO PROCEED IN THAT IN THAT WAY.

AND SO, IF I MAY, ARE THESE BONDS THAT ARE CONTEMPLATED UNDER MEASURE CC OR MEASURE G 2002 OR MEASURE G 2000? THIS WOULD BE ISSUING A NEW FUNDS UNDER THE MEASURE C, A CC MEASURE G IS COMPLETELY EXHAUSTED.

BUT I DO WANT TO MAKE A NOTE THAT WE DO PLAN SOMETIME BETWEEN NOW AND HOPEFULLY THE BEGINNING OF FALL TO BRING A RESOLUTION.

AUTHORIZING US TO REFUND.

THERE IS A POTENTIAL REFUNDING OPPORTUNITIES THAT WE POTENTIALLY CAN SAVE ROUGHLY BETWEEN 10 AND $14 MILLION TO THE TAXPAYER.

ON REFUNDING ON THAT DUE TO INTEREST RATES.

SO WE DO PLAN TO DO THAT.

AND SO YOU SHOULD SEE THAT RESOLUTION COMING IN THE NEAR FUTURE.

AS SOON AS WE GO THROUGH THE RFP PROCESS ON SELECTING A NEW UNDERWRITER.

ON THAT. AND SO BUT MORE TO COME ON THAT AND SO BUT TO ANSWER YOUR QUESTION, IT WOULD BE UNDER THE NEW MEASURE CC AUTHORIZATION THAT WAS APPROVED IN 22 THAT THAT WAS MEASURE G.

MEASURE G WAS APPROVED IN 1222.

THAT WAS 22 CC.

G WAS THE ONE BEFORE 2012 WAS G.

YEAH. CC G CC CC G.

OKAY. YEAH. THERE YOU GO. YEAH, YEAH.

WE USE CC TWICE.

TWICE. GOTCHA. YEAH, YEAH.

HOW FORTUITOUS.

RIGHT. I HAVE A QUESTION.

THANK YOU. I THINK YOU WE'VE TALKED ABOUT THIS IN THE PAST.

SO WITH THIS ACTION, DOES THIS NOW GOING TO APPEAR ON A TAXPAYERS IS IT THE BILL? RIGHT. BECAUSE YOU WERE TELLING ME THAT THAT THE AS A RESIDENT OF THE DISTRICT, THEY WON'T REALLY BE ASSESSED THE NEW TAX RATE UNTIL WE ACTUALLY SELL THE BONDS?

[00:05:06]

YES. THAT. YEAH. THIS THIS JUST PUTS THE COUNTY ON NOTICE ON THAT.

THEY WON'T SEE ANYTHING REFLECTED ON THE BILL UNTIL WE ACTUALLY PHYSICALLY ISSUE ON THAT.

THIS JUST PUTS IT IN THEIR PIPELINE OF POTENTIALLY WHAT IT WOULD LOOK LIKE.

SO THEY GO THROUGH A PROCESS OF WHAT THEY WOULD NEED TO ASSESS ON THAT.

BUT THAT WON'T WON'T HAPPEN UNTIL WE ACTUALLY ISSUE BONDS.

AND WHEN DO WE ANTICIPATE THE ISSUING OF THE.

SO DEPENDING ON CASH FLOW, WE'RE DOING CASH FLOW BECAUSE SOME OF THESE PROJECTS ARE GOING A LITTLE FASTER THAN WE ANTICIPATED.

WE PROBABLY ARE LOOKING TO POTENTIALLY ISSUE NEW MONIES PROBABLY EARLY IN THE FALL OF THIS YEAR.

SO SOMETIME AROUND SEPTEMBER ISH IS PROBABLY WHAT WE'RE LOOKING TO DO ON THAT.

AND SO WE'LL PROBABLY DO A COMBINATION OF, OF BECAUSE WE'LL BE ABLE TO MAXIMIZE OUR DOLLARS AND COST BY DOING THE REFUNDING AND ISSUING OF NEW MONEY AT THE SAME TIME.

AND SO IT'D BE ONE THING.

SO WE WE DON'T HAVE TO PAY COST OF ISSUANCE TWICE, WE'LL ONLY HAVE TO PAY IT ONCE.

AND SO WE'RE WAITING TO DO BOTH OF THEM AT THE SAME TIME.

THAT WAY WE CAN ACTUALLY SAVE MONEY BY DOING IT IN CONJUNCTION WITH EACH OTHER.

SO OKAY.

AND THEN MY LAST QUESTION IS YOU MENTIONED THAT WE'RE GOING TO BE SELECTING A NEW UNDERWRITER.

YES. HAS THAT RFP ALREADY BEEN RELEASED? THE RFP HAS ALREADY BEEN RELEASED AND I BELIEVE IT HAS IS ALREADY CLOSED.

AND SO MY OFFICE THEN WILL BE REVIEWING THE ACTUAL PROPOSALS THAT CAME IN AND THEN IF POSSIBLE, IN THE JULY MEETING.

IF NOT, THE FOLLOWING MEETING WILL BE BRINGING A RECOMMENDATION FOR YOUR APPROVAL.

AND IS RBC STILL OUR CURRENT UNDERWRITER, OR IS THAT.

NO, OUR CURRENT TECHNICALLY, OUR CURRENT UNDERWRITER UNDER CONTRACT IS MORGAN STANLEY.

OKAY? IS OUR CURRENT UNDERWRITER, BUT RIGHT NOW, WE'RE NOT DOING ANYTHING UNTIL WE ACTUALLY DO THIS THIS PROCESS.

OKAY. THANK YOU.

ONE QUESTION HERE RELATED.

SO THE THE THE TOTAL AMOUNT THAT WAS AUTHORIZED BY THE VOTERS, RIGHT.

THAT'S A TOTAL CAPITAL AMOUNT FOR TOTAL BOND ISSUANCE.

RIGHT? AND THAT AMOUNT, IS IT TRUE THAT THAT AMOUNT DOES NOT CHANGE REGARDLESS IF WE ISSUE THOSE NOW OR FIVE YEARS FROM NOW OR TEN YEARS FROM NOW, RIGHT? YEAH, THAT DOES IT. THE ONLY THING THAT WOULD HINDER OUR ABILITY TO ISSUE IS TAX RATE.

SO SO ONE, WE WOULD NOT BE ABLE TO ISSUE ALL 425 ALL IN ONE ISSUANCE.

THERE'S JUST NOT ENOUGH TAX CAPITAL TO BE ABLE TO DO THAT.

THAT'S WHY WE HAVE TO DO IT IN MULTIPLE STAGES.

BUT FOR ANY REASON, LIKE BACK IN 2008 WHERE WE HAD A MARKET CRASH AND PROPERTY VALUES WENT DOWN, THAT HINDERED SOME DISTRICTS ABILITY TO ISSUE NEW DOLLARS BECAUSE THE TAX RATES WERE HIGH ENOUGH WHERE IT DIDN'T PROVIDE ENOUGH GAP TO BE ABLE TO DO THAT.

AND THAT'S WHERE YOU SAW DISTRICTS MOVING TO WHAT THEY CALL ACCRETED BONDS, WHICH IS SOMETHING IN OUR POLICY WE STAY AWAY FROM.

I KNOW PAST HISTORY, CERRITOS HAD HAD USED ONE ACCRETED BOND IN THE EARLY YEARS OF MEASURE G.

BUT WE TRIED TO STAY AWAY FROM THOSE BECAUSE THOSE ARE OBVIOUSLY MORE COSTLY THAN YOUR TRADITIONAL INTEREST BEARING BONDS.

BECAUSE MY THOUGHT IS THAT WITH GIVEN WE'RE LIKELY IN A CONTINUOUSLY HIGH INFLATION PERIOD FOR, FOR A TIME, THAT THE LONGER WE SAY, YOU KNOW, I FORGET THE EXACT NUMBER OFF THE TOP OF MY HEAD THAT WE GOT APPROVED BY THE VOTERS. BUT IF WE WAIT THAT BECOMES LESS BUILDING OVER TIME.

YEAH. JUST BECAUSE OF THE INFLATION PROPERTIES OF OF THAT.

AND THEN AND THEN LIKEWISE THE COST OF CONSTRUCTION IS GOING UP.

SO WE HAVE TWO DIFFERENT PIECES THAT ARE PUSHING LIMITATIONS THAT IT SEEMS TO ME THAT THE WE DO THE VOTERS A FAVOR BY DOING THIS EARLY RATHER THAN LATER, BECAUSE WE'RE STRETCHING THE DOLLARS THAT THEY'VE GREENLIT FOR US MORE, MUCH MORE THAN IF WE WAIT.

YOU'RE ABSOLUTELY RIGHT.

TRUSTEE BIRKEY. BUT THE ONLY THING I WOULD ADD TO THAT FROM A COMPLIANCE STANDPOINT BECAUSE WE ARE ISSUING TAX EXEMPT BONDS, IRS GOVERNS US.

ANY BONDS THAT WE ISSUE, WE MUST SPIN DOWN 85% OF THE PROCEEDS WITHIN A THREE YEAR PERIOD.

SO IF WE ISSUE TOO MUCH, YEAH, WE DEFINITELY THINK COULD BE IN VIOLATION AND ACTUALLY HAVE TO PAY BACK THE MONIES BACK TO THE IRS, BECAUSE IF WE SIT AND SIT ON THE MONEY AND ACCUMULATE INTEREST THAT FROM A SINCE WE'RE USING TAX EXEMPT BONDS, THAT WOULD BE VIOLATION IRS TAX

[00:10:06]

BECAUSE WHEN YOU ISSUE YOU WANT TO HAVE A IN YOUR QUEUE ENOUGH TO BE ABLE TO SPEND 80, AT LEAST 85% WITHIN THOSE FIRST THREE YEARS.

TO BE TO BE CLEAR, I'M TALKING NOT ABOUT JUST ISSUING TONS OF BONDS.

I'M TALKING ABOUT UTILIZING THE MONEY THAT'S BEEN APPROVED BY THE VOTERS SOONER RATHER THAN LATER.

YEAH, FOR ITS INTENDED PURPOSE.

ABSOLUTELY. AND AS YOU SEE, WE HAVE TWO PROJECTS GOING NOW.

WE HAVE FOUR IN THE QUEUE.

SO WE WE HAVE A LOT LINED UP READY TO GO.

AND THE GOAL IS WE WOULD BE IN CONTINUOUS CONSTRUCTION FOR AT LEAST THE NEXT 5 TO 10 YEARS NONSTOP, YOU KNOW, IS THE GOAL BECAUSE YOU'RE RIGHT.

ONCE WE'RE IN THIS, WE WANT TO KEEP DOING THIS AND DO IT AS QUICKLY AS AS WE CAN, BECAUSE THE LONGER YOU WAIT, THE MORE ESCALATION COSTS THEY HAVE.

SO YOUR $425 MILLION REALLY, YOU KNOW, BY THE TIME YOU'RE DONE TEN YEARS FROM NOW IS, YOU KNOW, PROBABLY ONLY WORTH 375 MILLION.

SO THE GOAL IS TO, ONCE YOU'RE IN THAT MODE, IS JUST TO CONTINUE TO GO AS MUCH AS YOU CAN.

AND THAT REQUIRES YOU TO HAVE MULTIPLE PROJECTS IN THE QUEUE, ONE AFTER THE OTHER, SO YOU CAN BE ABLE TO CONTINUOUSLY BE IN CONSTRUCTION.

THANK YOU. ANY OTHER COMMENTS OR QUESTIONS? OKAY. HEARING NONE.

CAN I GET A MOTION TO APPROVE, PLEASE? MOTION. I'M SORRY.

SECOND. SECOND.

ALL THOSE IN FAVOR? AYE. ANY OPPOSED? HEARING NONE. MOTION PASSES.

THANK YOU. NEXT ITEM, 3.02.

[3.02 Presentation and Consideration of Approval of the Tentative Budget for the 2024-2025 Fiscal Year]

THANK YOU. TRUSTEES.

SO TODAY HERE'S KIND OF THE AGENDA ON IT.

SO I'M GOING TO BRIEFLY GO OVER A RECAP OF THE MAY REVISE.

I KNOW YOU HEARD US SAY THIS A COUPLE OF TIMES AND THEN TALK ABOUT WHERE WE'RE AT TODAY, WHERE THE BUDGET IS RIGHT NOW, WHAT WE KNOW OF NOW AND THEN GO INTO WHAT OUR TENTATIVE BUDGET LOOKS LIKE AND THEN ANSWER ANY QUESTIONS AFTER THAT.

SO, AS WE ALL KNOW, THE MAY REVISE WAS RELEASED BACK IN MAY.

MAY 10TH.

THIS PROPOSAL PROPOSED A COLA OF 1.07.

THAT WAS AN INCREASE FROM THE GOVERNOR'S JANUARY BUDGET PROPOSAL OF POINT 76.

ALSO INCLUDED COLAS FOR CERTAIN CATEGORICAL PROGRAMS. AND WE ALSO SAW THAT THERE WAS $80 MILLION FOR THE EXPANSION OF THE NURSING PROGRAMS THAT WAS IN THERE.

AND THEN ONE OF THE THINGS I WANTED TO HIGHLIGHT, BECAUSE THIS WILL BE AFFECTING US COMING UP THIS NEXT FISCAL YEAR IS THE CREATION OF A NEW FUNDING FLOOR.

AND WHAT THIS BASICALLY MEANS IS THE, THE STATE IS RE BENCHING WHAT THEY'RE CALLING OUR, YOU KNOW, FOR LACK OF A BETTER WORD, OUR HOLD HARMLESS.

AND JUST TO GIVE YOU AN EXAMPLE, OUR CURRENT HOLD HARMLESS AMOUNT RIGHT NOW IS $120 MILLION.

HOWEVER, OUR ACTUALLY FUNDING IS MORE LIKE $146 MILLION.

SO WE HAVE A HUGE GAP, RIGHT? AND THAT'S ACTUALLY KIND OF A BAD, BAD THING.

SO ONCE ONCE WE MOVE TO THE NEW FUNDING FORMULA, WE WE CONTINUE TO DO EXTREMELY WELL.

AND SO WE CREATED THIS LARGE GAP BETWEEN OUR FLOOR AND WHAT WE'RE CURRENTLY FUNDED AT.

IN MY OPINION, THIS IS ACTUALLY GOOD FOR CERRITOS COLLEGE.

AND THE REASON WHY IS NOW WE'RE GOING TO BE ABLE TO RE BENCH THAT FLOOR AND CLOSE THAT GAP.

SO OUR ESTIMATES RIGHT NOW WITHOUT DOING ANYTHING, WE THINK AFTER THE END OF NEXT YEAR OUR NEW FLOOR WOULD BE ROUGHLY ABOUT $146 MILLION.

SO THAT MEANS OUR FUNDING CANNOT GO BELOW THAT.

PREVIOUSLY IT WAS AT 120, SO WE ACTUALLY INCREASED OUR FLOOR, OUR MINIMUM BY $26 MILLION.

AND SO WE'RE ACTUALLY LOOKING FORWARD TO THIS BECAUSE THIS FLOOR CREATION OF THIS UPDATED FLOOR ACTUALLY BENEFITS CERRITOS COLLEGE.

AND SO AND THAT A FLOOR WILL BE ESTABLISHED ON WHATEVER AMOUNT WE ARE FUNDED IN OUR 2425 FISCAL YEAR.

SO GOING INTO THIS NEXT COMING YEAR, WHATEVER WE ARE, WHATEVER OUR STATE APPORTIONMENT IS, THAT WILL THEN BE SET, OUR NEW FLOOR.

AND THEN THERE'S ALL THE NUMBER OF DIFFERENT COMPONENTS WITHIN THAT FLOOR THAT I'M NOT GOING TO GET TO TOO MUCH INVOLVED IN, BUT JUST WANTED TO POINT THAT OUT THAT WE ARE RE BENCHING OUR FLOOR COMING UP NEXT YEAR, WHICH IS WHICH DEFINITELY INCREASES OUR MINIMUM AND WE WON'T BE ABLE TO DROP BELOW BELOW THAT MOVING

[00:15:10]

AND THEN AS WE KNEW IN THE MAY REVISE THERE WAS STILL CONTINUOUS SUPPORT OF, OF PUTTING A STATEWIDE LEASE REVENUE BOND AS AN ALTERNATIVE TO LOCAL LEASE BONDS.

THAT WAS OUTLINED IN THE GOVERNOR'S BUDGET.

AND THIS IS PRIMARILY FOR THE STUDENT HOUSING ON IT.

SO THERE'S MORE TO COME TO THIS BECAUSE NOW I'M IN A TRANSITION TO KIND OF SOME THINGS THAT HAVE HAPPENED BETWEEN THE MAY REVISE AND TODAY.

SO AB 700, AND 107 WAS THE IT'S THE BUDGET ACT OF 2024.

THAT WAS PASSED BY BOTH HOUSES BACK IN JUNE 13TH OF THIS MONTH.

THAT CURRENTLY WENT TO THE GOVERNOR.

AND THAT IS WAITING EITHER HIS SIGNATURE OR VETOED ON THAT.

SO CURRENTLY HAS A DEADLINE OF TOMORROW.

SO WE ANTICIPATE THAT HE'LL PROBABLY BE SIGNING A LOT OF THESE EITHER LATE TONIGHT OR TOMORROW.

DEADLINE ON THAT. SO WAITING TO THE LAST MINUTE ON THAT.

SO AND REALLY THIS, THIS CREATES AND THEN FROM THERE IS SB 154 WHICH IS THIS IS THE RELATING TO THE PROP 98 ISSUE THAT WAS GOING ON.

AND SO THIS BILL ALIGNS WITH THE DEAL BETWEEN THE GOVERNOR AND THE CALIFORNIA TEACHERS ASSOCIATION, BUT IT DOES HAVE SOME DISCREPANCIES BETWEEN THIS BILL HAS DISCREPANCIES OF WHAT THE DEAL WAS PRIMARILY ON HOW MUCH MONEY IS TO BE SUSPENDED IN THE GUARANTEE FOR 23, 24, AND HOW MUCH MONEY IS SUPPOSED TO BE LEFT IN THE RAINY DAY FUND? SO THIS SB 154 LIKE I SAID, SUSPENDED PROP 98 GUARANTEE FOR THE 2324 YEAR. AND WHAT THAT ENDED UP DOING WAS CREATING A MAINTENANCE FACTOR OF ROUGHLY $8.3 BILLION.

SO IN EFFECT, WHAT'S GOING TO HAPPEN IS K 14 SCHOOLS WILL GET A HIGHER PERCENTAGE OF FUTURE GROWTH THAN THEY NORMALLY WOULD UNTIL THE MAINTENANCE FACTOR IS PAID BACK INTO PROP 98 BASE.

AND SO BASICALLY WHAT THAT IS, IS IS THE FIRST SO THE $8.3 MILLION A MAINTENANCE FACTOR WILL BE PAID PAID TO K-14 IN FUTURE YEARS.

AND SO THE FIRST PAYMENT OF THAT PAYBACK IS NOT HAPPENING UNTIL 22.

I MEAN, 24, 25 OF ROUGHLY $4 BILLION.

YOU'RE GOING TO PAY ABOUT HALF OF IT DOWN STARTING NEXT YEAR ON THAT.

AND SO, HOWEVER, HOW THEY BALANCE THE GAP IS BY REDUCING AND PULLING IT OUT OF THE RAINY DAY FUND.

AND SO AS YOU NOTICE ON THE LAST BULLET THE SB ONE 54 PROPOSED A ONE TIME WITHDRAWAL OF ROUGHLY $8.4 BILLION.

ON THAT. AND SO THAT IS KIND OF THE BACKSTOP.

THE STATE IS BASICALLY DOING ON THAT UNTIL THEY ACTUALLY PAY BACK THE MAINTENANCE FACTOR.

THIS ALSO CREATES SOME DEFERRALS, AS WE MENTIONED BEFORE, IN PREVIOUS PRESENTATIONS, WE EXPECTED DEFERRALS TO BE COMING ON.

SO HERE CREATES A ONE TIME DEFERRAL OF ROUGHLY 4 BILLION IN 2324.

AND THEN THAT WOULD BE PAYING OFF.

REPAID BACK TO SCHOOLS AND COMMUNITY COLLEGES IN THE NEXT FISCAL YEAR.

AND SO BASICALLY OUR JUNE APPORTIONMENT THIS CURRENT MONTH WOULD TECHNICALLY BE DEFERRED AND THEN WOULD ISSUED OUT EITHER IN JULY OR AUGUST ON THAT.

AND SO AGAIN, THIS BILL WAS ALSO FORWARDED TO THE GOVERNOR'S OFFICE AND AGAIN HAS UNTIL TOMORROW TO EITHER SIGN IT OR VETO IT.

BUT THE LATEST NEWS WAS THERE HAS BEEN A FINAL BUDGET AGREEMENT THAT WAS ANNOUNCED.

THE LEGISLATURE ANNOUNCED A DEAL BETWEEN THE GOVERNOR ON THE THE PROPOSED 2425 BUDGET. AGAIN THIS THIS WEEK, THEY'VE BEEN REVIEWING IT AND THEY ANTICIPATE THIS TO BE SIGNED BY AGAIN BY

[00:20:05]

AND SO SOME KEY ITEMS AND AGAIN, REALLY NOTHING HAS CHANGED ON THAT.

BUT AGAIN, SOME OF THE KEY ITEMS IS IT DOES STILL HAVE THE 1.07 COLA DOES HAVE A HALF A PERCENT OF GROWTH, AND THERE IS ACTUALLY TWO DEFERRALS IN THIS NEW ONE.

AND SO THE FIRST DEFERRAL WILL BE THE ONE, AS I MENTIONED BEFORE, ABOUT $446 MILLION OF DEFERRED STATE APPORTIONMENT HAPPENING THIS FISCAL YEAR.

SO OUR JUNE APPORTIONMENT THIS MONTH IS LIKELY GOING TO BE HALTED OR DELAYED AND PAID BACK IN THE NEXT COUPLE OF MONTHS.

AND THEN WE'RE ALSO GOING TO FACE ANOTHER DEFERRAL YEAR FROM NOW.

SO NEXT JUNE WE'LL FOR THE 2425, WE'LL HAVE A DEFERRAL THERE AS WELL.

AND THAT WILL GET PAID TO US IN THE FISCAL YEAR 2526.

SO FROM A CASH FLOW STANDPOINT, WE ANTICIPATED THIS.

WE DO NOT ANTICIPATE OF HAVING TO BORROW OR ISSUE ANY TRANS BECAUSE OF THIS.

YOU KNOW, THESE THESE DEFERRALS ARE SMALL ENOUGH THAT WE CAN ABSORB THEM.

SO WE'VE BEEN MONITORING CASH FLOW AND WE ANTICIPATE BEING ABLE TO WITHSTAND THIS DELAY ON THAT WITHOUT HAVING TO BORROW ANY DOLLARS.

SO. THIS THE FINAL AGREEMENT ALSO INCLUDES THE $60 MILLION OF EXPANSION OF NURSING PROGRAMS. AND IT ALSO PROVIDES A $20 MILLION, ONE TIME ALLOCATION FROM PROP 98 TO HELP SUPPORT FINANCIAL AID ADMINISTRATION'S PROGRAMS TO SUPPORT STUDENTS COMPLETING THEIR 2425 FAFSA.

AND THAT'S DUE TO ALL THE DELAYS OF THE DEPARTMENT OF ED OF ISSUING OUT THAT.

SO THIS WOULD BE SOME ONE TIME FUNDS THAT WE'LL BE ABLE TO UTILIZE ON OUR FINANCIAL AID DEPARTMENTS TO HELP SUPPORT ANY SUPPORT SERVICES THEY WOULD NEED ON THAT AS WELL.

AB SB 155 IS THE HIGHER EDUCATION BILL.

SO THIS IS THE ONE THAT WE'VE BEEN ALSO KEEPING AN EYE ON.

SO THIS IS RELATED TO STUDENT HOUSING.

AND THIS BILL CREATES A STATEWIDE LEASE REVENUE BOND TO SUPPORT 13 COMMUNITY COLLEGE HOUSING PROJECTS, WHICH WE ARE ONE OF THOSE PROJECTS.

THIS BILL AUTHORIZES THE STATE PUBLIC WORKS BOARD TO ISSUE UP TO A LITTLE BIT MORE THAN $804 MILLION IN STATE LEASE REVENUE BONDS TO SUPPORT THE PROJECTS.

ONE OTHER THING. I WOULD NOTE THAT THIS BILL ALSO REQUIRES US TO ENTER IN OPERATIONAL AGREEMENTS BETWEEN THE STATE PUBLIC WORKS BOARD, THE BOARD OF GOVERNORS AS WELL.

SO ONCE THIS DOES GET SIGNED BY THE GOVERNOR, WHICH IS AGAIN, HE HAS UNTIL TOMORROW.

AND WE DO ANTICIPATE THIS BEING SIGNED THAT WILL BE BRINGING A FUTURE OPERATING AGREEMENT FORWARD FOR YOUR REVIEW AND APPROVAL IN THE NEXT NEAR FUTURE ONCE THESE START PROCEEDING.

SO GOOD NEWS ON THAT FRONT.

SO LOOKS LIKE OUR REQUEST OF ROUGHLY $68 MILLION IS GOING TO BE SECURED THROUGH STATE LEASE REVENUE BONDS.

CAN I ASK A QUESTION ON THAT? ONE OF THE THINGS WE HAD TALKED ABOUT PREVIOUSLY WAS THE VARIETY OF WAYS THAT THE STATE MIGHT POTENTIALLY FINANCE THIS PROJECT.

WE LOOKED AT REALLY THREE MAJOR MECHANISMS THAT MIGHT BE USED.

ONE WAS ISSUING OUR OWN BONDS, WHICH DOESN'T MAKE ANY SENSE.

THEN WE ALSO LOOKED AT POTENTIALLY THE STATE BOND AND THEN ALSO A STATE.

WHAT I THINK HERE IS TERMED A CASH GRANT.

AND ORIGINALLY IT WAS LOOKED AT MORE AS A CASH GRANT.

WHAT IS THE CURRENT MECHANISM THAT IS MOST ANTICIPATED CURRENTLY FOR THIS AS IT, AS IT RELATES? BECAUSE I KNOW THERE WAS WE'RE WAITING FOR THE DUST TO SETTLE ON A COUPLE OF DIFFERENT POSSIBILITIES.

SO THIS WOULD BE THE LATEST UPDATED BILL ON ON THERE.

SO BECAUSE THOSE OTHER WE STILL HAVE THE ABILITY TO PROCEED.

IF WE WANTED TO DO THE OUR LOCAL LEASE REVENUE BOND THE CASH GRANT DIDN'T PENCIL OUT BECAUSE THEY ONLY GAVE SMALL PORTIONS.

THOSE WERE LIKE BRIDGE GAP TYPE FUNDING.

[00:25:02]

THOSE WERE ONLY INTENDED TO BRIDGE DO SOME BRIDGE GAP FUNDING ON IT.

SO REALLY THE CASH THAT THE CASH GRANT DIDN'T DIDN'T WORK IN OUR SITUATION.

SO THIS IS THE MECHANISM WE HAVE BEEN LOOKING AT IS OBVIOUSLY BECAUSE WE DID NOT WANT TO ISSUE OUR OWN LEASE REVENUE BOND.

WE WANTED THE STATE TO BE ABLE TO DO THAT AND THEN FRONT PROVIDE THAT THOSE DOLLARS THAT WAY.

AND SO, SO THIS IS THE MECHANISM THAT ALL THOSE 13 COMMUNITY COLLEGES WERE REALLY WAITED ON.

I'M NOT AWARE OF ANY OF THOSE THAT ARE WAITING FOR FUNDING THAT PROCEEDED ON WITH LOCAL LEASE REVENUE BONDS.

I THINK ALL OF THEM WERE WAITING ON THIS.

THE ONLY ONES THAT PROCEEDED WERE THE TWO COMMUNITY COLLEGES THAT HAD INTERAGENCY AGREEMENTS WITH THEIR LOCAL UCS, WHICH I THINK ONE OF THEM BEING MERCED COLLEGE WITH UC MERCED AND RIVERSIDE CITY COLLEGE WITH UCR.

THOSE ARE THE ONLY TWO WITHIN THE GROUP THAT PROCEEDED ON THAT, BECAUSE UC ENDED UP PICKING UP THE FULL THE FULL RESPONSIBILITY OF OF THE DOLLARS ON THAT.

THESE 13 DISTRICTS WE'VE BEEN REMAINING WAITING TO SEE THIS STATE LEASE REVENUE BOND COME TO FRUITION.

SO IF SIGN THAT'S THE MECHANISM WE'D BE BE USING.

OKAY. ALL RIGHT.

SO SO THAT'S KIND OF WHERE WE'RE AT RIGHT NOW.

SO BY TOMORROW, WE DO ANTICIPATE HAVING A OFFICIAL ENACTED BUDGET SIGNED REALLY WITH NO CHANGES.

WE'VE BEEN KIND OF WE'VE BEEN KIND OF TOUTING THE SAME INFORMATION OVER AND OVER, AND IT LOOKS LIKE EVERYTHING IS BASICALLY THE SAME.

AND SO THAT WE HAVE BEEN RELEASING SO VERY, JUST A VERY PLAIN BUDGET, YOU KNOW, COLA WE HAVE SOME DEFERRALS LITTLE ONE TIME MONEY FOR A COUPLE OF PROGRAMS, BUT THAT'S ABOUT IT.

AND SO WE HAVE TO DO A LITTLE CASH MANAGEMENT, MONITORING DEFERRALS AND THINGS LIKE THAT.

BUT NOTHING NOTHING TOO COMPLICATED OR EARTH SHATTERING OR ITSELF.

SO SPECIAL THANKS TO THE GOVERNOR'S OFFICE FOR REALLY, YOU KNOW, SUPPORTING K 14 ALTOGETHER AND, AND YOU KNOW, SO WE'RE, YOU KNOW, GIVEN THE CLIMATE, WE'RE VERY HAPPY NOT TO SEE ANY CUTS ON THAT.

SO RELATED TO KIND OF SWITCHING TO MORE INTO OUR BUDGET.

SO LET'S SEE IF I CAN.

THERE YOU GO. SO HERE IS KIND OF A TEN YEAR HISTORY OF ALL THE COLAS THAT HAVE BEEN INCLUDED IN OUR BUDGET, INCLUDING RIGHT NOW, OUR TENTATIVE BUDGET DOES INCLUDE THE 1.07% COLA.

THIS IS AGAIN ANOTHER TEN YEAR HISTORY OF WHERE WE'RE AT ON OUR 14.

SO AS OF THE ADVANCE FUND, WE'RE AT 262, WHICH WE DO APPEAR OR ANTICIPATE TO BE IN COMPLIANCE AT OUR ADOPTED BUDGET COMING SEPTEMBER.

THIS MAY CHANGE A LITTLE BIT SLIGHTLY.

IF ANYTHING, IT WILL GO DOWN.

IT WON'T GO UP.

THE REASON WHY I SAY IT MAY CHANGE BECAUSE I STILL NEED TO DO THE CALCULATIONS BECAUSE P2 JUST GOT RELEASED YESTERDAY AND SO WE HAVEN'T HAD ANY TIME TO REALLY DO A LOT OF ANALYSIS IN THE P2.

IT LITERALLY ISSUED, YOU KNOW, 330, 4:00 YESTERDAY ON THAT.

AND THE THING THAT I SAW IN THE P2 IS A GINORMOUS DEFICIT FACTOR THAT WAS PROPOSED THAT NOT PROPOSED, THAT IS IN THERE.

IT'S THE ACTUAL DEFICIT FACTOR FROM P1 WAS 3.5%.

AT P2 IT INCREASED TO 8.7%.

SO THAT EQUATES TO ROUGHLY A REVENUE DEFICIT OF 5.2 AT P1 TO ROUGHLY $12.8 MILLION AT P2.

I SAY THAT BECAUSE OUR FAN IS DRIVEN OFF OF FUNDED P2, AND SO BECAUSE OF THAT DEFICIT FACTOR, WE NEED TO DO THE CALCULATIONS.

CALCULATION. SO IF ANYTHING THAT TWO 60 TWO COULD GO DOWN I DON'T KNOW YET.

AND SO AT OUR NEXT ADOPTED BUDGET WE'LL HAVE THE FINAL WHAT THE FUND WOULD BE FOR THE FALL 20 FALL, 2425

[00:30:07]

SO THAT COULD CHANGE.

BUT AS OF RIGHT NOW THE HIGHEST IT CAN GO IS TWO 60 TWO, WHICH CURRENTLY WE WOULD BE IN COMPLIANCE.

THE NEXT TWO SLIDES JUST SHOW A HISTORY.

OVER THE LAST TEN YEARS OF THE INCREASED CONTRIBUTIONS RELATED TO TWO PENSION PROGRAMS THAT WE HAVE.

BOTH THIS FIRST ONE BEING STIRS AND THEN THE SECOND ONE BEING OUR PERS, AS YOU KNOW AS YOU CAN SEE RIGHT NOW, OUR EMPLOYER CONTRIBUTION RATE HAS HAS KIND OF FLATTENED OUT OVER THE LAST THREE YEARS AT 19.1%.

ON THAT SAME THING ON THE PER SIDE OUR RATE ACTUALLY HAS STEADILY INCREASED YEAR AFTER YEAR.

AND CURRENTLY, THE NEW RATE FOR THE 2425 FISCAL YEAR IS 27.05%.

ON THAT. SO THESE ARE THE ENTIRE STATUTORY BENEFITS THAT WE'RE CURRENTLY PAYING.

SO CLASSIFIED FOLKS ROUGHLY 36.15% OF THEIR SALARY IS CALCULATED ON BENEFITS AND THEN 22% IS FOR THE ACADEMIC SIDE EMPLOYEES AS WELL.

THIS IS OUR FTES OVER AGAIN THE LAST TEN YEARS.

CURRENTLY WORKING WITH ACADEMIC AFFAIRS.

WE'RE BUDGETING ROUGHLY ABOUT 16.5 16,500 FTES.

WE'RE PLANNING FOR FOR THIS UPCOMING FISCAL YEAR.

AT P2 WE REPORTED JUST SLIGHTLY OVER 16,000 FTES.

ARE FUNDED FTES.

THE DIFFERENCE BETWEEN REPORTED AND FUNDED IS THE FUNDED IS DRIVEN OFF A THREE YEAR ROLLING AVERAGE.

OUR FUNDED FTES WAS 17,053.

AND SO MOVING IN THE RIGHT DIRECTION, OBVIOUSLY WE'RE GETTING BACK TO WHERE WE'RE RIGHT SIZED.

AND AGAIN AT P2 THAT WAS STILL AN ESTIMATE.

SO WE DO ANTICIPATE AT ANNUAL AT AT P3, WHICH IS DUE IN JULY, THAT THIS NUMBER LIKELY WILL PICK UP EVEN MORE BECAUSE ONCE WE INCORPORATE ALL THE SUMMER AND THEN WHAT WE ESTIMATED FOR THE LATE STARTS OF OUR SPRING ON THAT.

SO AGAIN, OUR ENROLLMENT IS TRENDING IN THE RIGHT AREA.

SO IT'S WE'RE BASICALLY BACK WHERE WE SHOULD BE OR WHERE WHAT WE CONSIDER RIGHT SIZED FOR OUR DISTRICT.

SO SO ALL ALL THINGS GOOD THERE.

THIS IS WHAT POSITION WISE IS IN OUR BUDGET.

SO TOTAL OF 715 FULL TIME POSITIONS.

THIS IS OUR BUDGET BROKEN DOWN BY EACH WHAT WE CLASSIFY AS MAJOR OBJECT CODE ACADEMIC SALARIES THAT WOULD INCLUDE ANY ACADEMIC DEANS ANY ACADEMIC ADMINISTRATORS, INCLUDING FACULTY COUNSELORS, LIBRARIANS PART TIME FACULTY, PART TIME COUNSELORS.

LIBRARIANS FIT INTO THAT CATEGORY.

SO THAT MAKES UP ROUGHLY 43.5% OF OUR BUDGET.

THIS YEAR THIS UPCOMING TENTATIVE BUDGET, IT'S ROUGHLY $75.2 MILLION OF OUR BUDGET CLASSIFIED SALARIES.

THOSE ARE ALL OF OUR CLASSIFIED ADMINISTRATORS OR CSC STAFF.

CONFIDENCIALES ANY HOURLIES.

THAT MAKES UP ROUGHLY 17.65% OR ROUGHLY $30.4 MILLION OVERALL EMPLOYEE BENEFITS IS IS NEARLY 26% OF OUR BUDGET.

SO AT $44.7 MILLION.

AND THEN TO ROUND OUT WE HAVE SUPPLIES OUTSIDE SERVICES.

THOSE ARE ALL OF OUR CONTRACTED SERVICES.

AUDIT LEGAL.

ALL OF OUR UTILITY COSTS RUN THROUGH THAT.

SO THAT'S ROUGHLY ABOUT 5.3% OF OUR OVERALL BUDGET CAPITAL OUTLAY.

THAT COULD BE COMPUTER REPLACEMENTS.

IT COULD BE A NUMBER OF DIFFERENT THINGS FIT INTO THAT.

THAT'S BASICALLY 0.66% OF OUR BUDGET AND THEN TRANSFERS OUT.

THAT IS ROUGHLY 6%.

AND I KIND OF WANT TO STOP HERE FOR A SECOND.

THIS NUMBER HAS INCREASED ON THAT.

SO INCLUDED IN THIS NUMBER REPRESENTS AN $8 MILLION TRANSFER FROM GENERAL FUND TO OUR CAPITAL OUTLAY

[00:35:01]

WE ACTUALLY SUBMIT IN THIS CURRENT FISCAL YEAR WE'RE IN TODAY, WE'VE ALLOCATED OR TRANSFERRED THE $4 MILLION OF THE 12 NEXT YEAR WILL BE TRANSFERRING THE EXISTING 8 MILLION.

WE DIDN'T WANT TO DO. WE WE BROKE IT UP INTO A COUPLE OF YEARS JUST BECAUSE WE DIDN'T NEED ALL OF THAT.

AND SO WE WANTED TO KIND OF MAXIMIZE OUR INTEREST ON THAT.

SO WE KEPT IT IN THE GENERAL FUND.

SO THIS 8,000,001 TIME TRANSFER WILL IS SCHEDULED TO BE TRANSFERRED IN THE 2425 FISCAL YEAR.

I HIGHLIGHT THAT BECAUSE THIS DOES CREATE A, A DEFICIT OF SPENDING.

AND IT'S ONLY A ONE TIME THING.

OBVIOUSLY IT WAS SOMETHING THAT WE WERE PLANNED FOR, BUT AGAIN, I JUST WANTED TO HIGHLIGHT IT BECAUSE WE BRING IN.

SO WE'RE ANTICIPATING BRINGING IN A LITTLE BIT MORE THAN $164.5 MILLION OF REVENUE, BUT WE'RE GOING TO SPEND ROUGHLY $8.8 MILLION MORE.

AND SO WHICH CREATES A A DEFICIT SPENDING OF $8.8 MILLION.

AND SO WHAT I WANTED TO KIND OF HIGHLIGHT, TOO, IS IF YOU CARVE OUT THAT 8,000,001 TIME OBLIGATION ARE BASICALLY DEFICITS FACTOR OR SPENDING IS ROUGHLY $118,000, WHICH BY ADOPTED BUDGET WE CAN DO A LITTLE CUTTING BACK TO BE ABLE TO CLEARLY BALANCE THAT, THAT BUDGET.

SO AGAIN, NOTHING TO BE WORRY ABOUT IF IF WE HAVE A DEFICIT WE KNOW THAT THAT'S IT'S COMING OUT OF OUR ONE TIME RESERVES, WHICH WAS ALREADY A BOARD APPROVED ON THAT.

SO STILL IN A SOLID FINANCIAL POSITION.

AND THEN WE'LL MAKE ADJUSTMENTS WHEN WE BRING THIS BACK TO YOU FOR APPROVAL OF THE ADOPTED BUDGET IN SEPTEMBER.

AND, AGAIN, THE TENTATIVE BUDGET IS REALLY JUST ALLOWS US TO CONTINUE APPROPRIATIONS UNTIL WE ACTUALLY FINALIZE OUR BUDGET.

AND IS APPROVED BY SEPTEMBER 10TH ON THAT.

SO SO OTHER THAN THAT, THAT'S KIND OF WHAT I HAVE FOR YOU TODAY ON IT.

AND SO THERE'S OTHER DOCUMENTS IN THERE THAT SHOW MORE OF THE LINE ITEM DETAILS OF THE BUDGET.

UNLESS YOU HAVE ANY SPECIFIC QUESTIONS.

I'LL STOP THERE AND AND SEE IF YOU HAD ANY QUESTIONS.

SO REGARDING THE CONTRIBUTIONS THAT WE MAKE TO THIS, SINCE AS FAR AS WE KNOW, WE HAVEN'T GOTTEN THE STATE CONTRIBUTION ON IT.

RIGHT. SO LIKE HOW MUCH OF IT WAS NECESSARY TO DO IMMEDIATELY SINCE THE STATE HASN'T DONE THEIR PART.

SO THE, THE, THE FIRST THING THAT WE NEEDED TO DO WAS WE ONLY DID 4 MILLION BECAUSE REALLY WE WERE TRYING TO MATCH ROUGHLY WHAT THE ARCHITECT FEE AND SOME OTHER CONSULTING FEES THAT WE NEEDED TO GET GOING ON THAT.

AND THAT'S IN JANUARY. RIGHT.

AND THAT'S THAT'S WHY WE BASICALLY ONLY DID THE 4 MILLION.

AND THE GOAL WAS THAT IF THE STATE IF THE LEASE REVENUE BOND WASN'T IN THE STATE'S BUDGET, WE WOULD STOP, WE WOULD BE DONE BECAUSE OBVIOUSLY WE KNEW THAT IF IF WE HAD TO WAIT ANOTHER YEAR, LIKELY OUR BUDGET WOULD HAVE ACCELERATED MORE AND WE WOULDN'T EVEN WITH THE STATE'S MONEY, WE WOULDN'T BE ABLE TO FUND THE PROJECT BECAUSE THE BOARD MADE IT CLEAR THAT THEY WEREN'T GOING TO CONTRIBUTE ANY ADDITIONAL MONEY BEYOND THE 12 MILLION. SO WE MADE THAT CRYSTAL CLEAR TO OUR CONSULTANTS AND OUR ARCHITECTS SAYING, THIS IS THE MONEY WE HAVE.

WE CAN'T GO A DIME MORE ABOVE IT.

AND WE'VE BEEN WORKING HARD TO MAKE SURE THAT OUR BUDGET STAYS WITHIN THAT.

NOW THAT BASICALLY BY TOMORROW, WE'LL KNOW FOR SURE IF THE GOVERNOR SIGNS IT, THEN THAT WE HAVE THAT SOLID $68 MILLION IN OUR BACK POCKET.

BECAUSE ONCE THAT SIGN, THAT'S PRETTY MUCH A DONE DEAL ON THAT.

SO WE'RE IN A PRETTY SOLID POSITION TO CONTINUE WITH OUR AS PLANNED.

UNLESS SOMETHING HAPPENS BETWEEN TODAY AND TOMORROW.

RIGHT. I'M JUST WONDERING IF WE COULD HAVE SPREAD IT OUT A LITTLE MORE OVER THE NEXT COUPLE OF YEARS OR SO, SINCE THE STUDENT HOUSING PROJECT WON'T BE DONE TILL, WHAT, 26? YOU KNOW, WE COULD IF THAT'S SOMETHING.

IF YOU IF YOU WANT ME TO RELOOK AT THAT AND SPREAD IT OVER A LONGER PERIOD OF TIME, I HAVE NO ISSUES OF OF DOING THAT.

ON THAT. AND SO IF THAT'S A SUGGESTION THAT YOU WOULD LIKE TO SEE AT THE ADOPTED BUDGET, BE MORE THAN HAPPY TO TO DO THAT BECAUSE IT DOESN'T IMPACT US, TO BE HONEST WITH YOU, IF WE GET THE STATE'S MONEY, WE'RE GOING TO BE UTILIZING THAT.

AND SO WE COULD DO THAT.

WE AGAIN, WE REALLY ONLY NEEDED THE 4 MILLION SO WE COULD HOLD AND SPREAD IT OUT OVER A LONGER PERIOD OF TIME.

[00:40:08]

THAT WON'T IMPACT CONSTRUCTION.

IT WON'T IMPACT ANY OF OUR CASH FLOW OF THE PROJECT.

AND SO, YEAH, ESPECIALLY AS TO YOUR POINT ABOUT MAKING, YOU KNOW, SOME MORE INTEREST ON THAT.

YOU KNOW, MONEY WITH THE FIRST THE REASON THAT IT WAS KEPT IN THE FIRST PLACE.

RIGHT? SO, YOU KNOW, IT'S A BIG SCARY, YOU KNOW, NEGATIVE NUMBER TO SEE.

YEAH, $8 MILLION AS DEFICIT DEFICIT SPENDING.

AND I KNOW IT'S JUST MORE OR LESS ON PAPER.

RIGHT. BUT YOU KNOW I'M WONDERING IF THAT'S A DIFFERENT TACTIC THAT WE COULD TAKE.

AND OBVIOUSLY I'M NOT A I'M NOT A NUMBERS GUY.

I'M ONLY AN ATTORNEY. SO I WOULD ASK THE REST OF MY COLLEAGUES FOR THEIR WISDOM, THOSE WHO ARE MORE FAMILIAR WITH BIG NUMBERS.

AND NO, I THINK IT MAKES SENSE THAT MY ONLY CONCERN IS THAT WHAT IS THE INTEREST RATE THAT WE TYPICALLY GET ON RETAINED FUNDS LIKE THAT? IT'S A POOLED INVESTMENT WITH THE COUNTY TREASURER'S OFFICE.

SO, YOU KNOW IT FLUCTUATES.

I HONESTLY, I DON'T I HAVEN'T LOOKED AT THE BALLPARK.

LET ME LET'S TAKE A STEP BACK.

SO IT'S SOMEWHERE AROUND ONE ONE AND A HALF SOMETIMES.

BUT THE THE POINT IS THAT WE WOULDN'T BE NOT MAKING THOSE INTERESTS THE WHAT WHAT THIS ACTUALLY MEANS IS THAT THE MONEY THEN WILL BE AUTHORIZED TO BE SPENT RATHER THAN BEING SPENT.

MEANING THAT IN THE EVENT THAT WAS NEEDED, YOU HAVE ALREADY AUTHORIZED THE USE OF THE MONEY.

BUT THE MONEY WILL ESSENTIALLY MOVE FROM IN PAPER FROM ACCOUNT A, IN WHICH WE CANNOT USE THE MONEY TO ACCOUNT, B WHICH IS PART OF THE MONEY THAT THE BOARD WILL APPROVE US TO USE DURING THE YEAR.

SO WE STILL COULD DO WHAT YOU'RE SUGGESTING.

TRUSTEE LEWIS. BUT I JUST WANT TO CLARIFY, THIS DOESN'T MEAN THE MONEY IS BEING SPENT OR TAKEN OUT THROUGH WHAT IT IS TODAY.

IT WILL CONTINUE TO BE IN WHATEVER PLACE THE TREASURY KEEPS IT.

IT JUST SIMPLY GIVES US AUTHORIZATION TO USE IT IN THE NEXT 12 MONTHS OR WHATEVER, MANY MONTHS IN THE EVENT THAT IS NEEDED. AND IF IT ISN'T NEEDED, YOU WILL SEE IT AS A SURPLUS ON NEXT YEAR'S BUDGET.

YEAH, THANKS FOR KEEPING US ON.

ON TOPIC.

DOCTOR PIERRO.

BUT JUST TO CLOSE THE LOOP, I AGREE WITH TRUSTEE LEWIS THAT TYPICALLY IN DEVELOPMENT PROJECTS, YOU SPEND THE EXPENSIVE MONEY LAST.

SO YEAH.

YEAH. IN THE CHEAP MONEY FIRST.

YEAH. OUR OFFICE CAN LOOK OVER IT AND COME UP WITH A REVISED SOLUTION FOR THE ADOPTED BUDGET THAT, LIKE I SAID, IT WOULD NOT IMPACT ANY SHORT TERM CONSTRUCTION PLANS AT THIS.

AT THIS POINT, THE MONEY THAT WE'VE ALREADY COMMITTED OVER THERE IS SUFFICIENT ENOUGH TO KEEP US GOING UNTIL WE GET THE STATE'S MONEY.

OKAY. THANK YOU.

ANYONE ELSE HAVE ANY COMMENTS? QUESTIONS? MOVE TO APPROVE.

MOTION TO APPROVE THE TENTATIVE BUDGET.

GREAT. SECOND.

ALL THOSE IN FAVOR? AYE. AYE. ANY OPPOSED? OKAY. HEARING NONE. MOTION PASSES.

THANK YOU. PHILIPPE.

AND NEXT ITEM.

NEXT ITEM IS A REPORTS AND COMMENTS FROM DISTRICT OFFICIALS.

WE WILL START WITH OUR STUDENT TRUSTEE.

NO REPORTS. OKAY.

TRUSTEE LEWIS.

I JUST WANT TO SAY THAT WE.

WE ARE.

I ATTENDED THE UNIDOS EVENT TODAY JUST FOR THE SMALL RECEPTION, ALONG WITH SOME OF OUR OTHER TRUSTEES HERE.

AND I THINK THAT'S WONDERFUL THAT WE GET TO HOST AN EVENT LIKE THAT TO FOCUS AS A HISPANIC SERVING INSTITUTION ON THE HISPANIC AND LATINO COMMUNITIES.

SO I'D LIKE TO SEE A LITTLE MORE CUBAN FLAGS, BUT THAT'S OKAY.

IT'S OKAY. WE'LL WORK ON THAT FOR NEXT YEAR.

THANKS. TRUSTEE LOU.

YEAH, I ALSO WAS AN EVENT.

IT WAS A GREAT EVENT.

THANK YOU. TRUSTEE PACHECO.

I WAS AT THE SAME EVENT THAT THE OTHER TRUSTEES WERE AT, BUT I ALSO WENT TO THE LEO AND THE I WENT TO SEVERAL SESSIONS, AND I CAN TELL YOU RIGHT NOW THAT I FELT THAT OUR COLLEGE WAS DOING REALLY GOOD BECAUSE THERE WAS A LOT OF THINGS THAT IN OTHER STATES, THEY'RE NOT DOING THAT WE ALREADY ARE DOING HERE. SO THAT MADE ME FEEL REALLY GOOD THAT WE ARE DOING THINGS AND WE'RE IN THE FOREFRONT OF, YOU KNOW, IN REGARDS TO COLLEGES

[00:45:05]

AND I ALSO ATTENDED A SCHOLARSHIP RECEPTION BY THE ASSISTANCE LEAGUE IN DOWNEY GIVING OUT SCHOLARSHIPS TO HIGH SCHOOL STUDENTS.

THAT'S IT. TRUSTEE.

PEREZ. I JUST WANTED TO FIRST SAY CONGRATULATIONS ON THE BUDGET.

I THOUGHT IT WENT VERY SMOOTHLY THIS YEAR, SO THAT WAS VERY GOOD.

I THINK I THINK WE'RE ALL BECOMING PROS AT THE BUDGET NOW.

IT'S KIND OF THE SAME THING OVER AND OVER AGAIN.

SO BUT AS TRUSTEE BIRKEY AND I WERE KIND OF CHATTING ON THE SIDE IS THAT IT'S MORE THAN DOUBLED SINCE LISA, I'VE BEEN HERE.

[4.01 Reports and Comments from District Officials]

I ALSO WANT TO JUST TO ACKNOWLEDGE THE COLLEGE'S WORK IN REGARDS TO DUAL ENROLLMENT.

I REALLY APPRECIATE THE SOCIAL MEDIA POSTS ON DUAL ENROLLMENT.

I SAW THAT AND I'VE BEEN SHARING IT.

AND I JUST WANTED TO, YOU KNOW, REMIND EVERYBODY THAT THE NEXT SUMMER SESSION STARTS NEXT WEEK.

RIGHT? SO AGAIN, SO THINK ABOUT SOMEBODY WHO MAY WANT TO BE ABLE TO EXPLORE A CLASS.

THERE'S STILL PLENTY OF TIME FOR THE SECOND PART OF THE SUMMER AT CERRITOS COLLEGE TO TAKE A CLASS.

I WANTED JUST TO ACKNOWLEDGE ALL MY THREE KIDS.

THEY'RE ALL TAKING CLASSES AND I WANTED TO ACKNOWLEDGE THE PROFESSORS WHO HAVE REALLY KEPT THEM ON THEIR TOES THE ENTIRE SUMMER, AND HOURS AND HOURS AND HOURS OF HOMEWORK. SO EVEN THOUGH YOU KNOW THERE ARE ONLINE CLASSES THEY HAVE BEEN REALLY WORKING VERY, VERY HARD.

SO I WANTED TO ACKNOWLEDGE PROFESSOR FURLONG CAPUTO, MY NOW NINTH GRADER.

SHE'S ONLY GOING TO BE A NINTH GRADE, IS ALREADY LIKE DAYS AWAY FROM COMPETING IN SPANISH 101.

WITH HIM. AND HE'S A VERY HARD PROFESSOR THAT REQUIRES A LOT OF WORK FOR A 14 YEAR OLD.

SO I THINK IT WAS A REALLY GOOD OPENING EYE OPENING FOR HER.

SHE PREPARES TO GO TO HIGH SCHOOL NEXT YEAR.

SHE'S ALSO TAKING DANCE APPRECIATION FOR WITH PROFESSOR REBECCA HATHAWAY AND REALLY LOVES IT, LIKE JUST LOVES HER ENTHUSIASM FOR DANCE AND HER KNOWLEDGE AND HISTORY.

SO THAT'S LIKE A PASSION OF HERS.

SO SHE WAS REALLY LOOKING FORWARD TO THAT CLASS.

AND THAT CLASS HAS BEEN WONDERFUL TOO.

AND THEN MY OTHER SON IS TAKING SOCIOLOGY 101, AND THAT JUST STARTED LAST WEEK.

AND I THINK THE ONLINE COMMUNICATION AND THE INTERACTION WITH THE STUDENTS HAVE BEEN REALLY GREAT.

I KIND OF LIKE POP IN AND SEE HIS CANVAS EVERY ONCE IN A WHILE, JUST TO KIND OF SEE WHAT HE'S DOING, BUT IT'S NICE TO HEAR HIM TALK.

AND I THINK THAT'S I CAN'T REMEMBER HER NAME.

HER NAME IS JOY. WHAT'S HER LAST NAME? SO I WANTED JUST TO RECOGNIZE HER.

AND THEN DAVID STARTS HIS TWO SUMMER CLASSES THIS SUMMER.

SO AGAIN, I MEAN, IT'S JUST AN OPPORTUNITY FOR AGAIN, IF YOU IF YOU KNOW ANY OF YOUR YOU KNOW, EVEN ANDREA HAS HER OWN STORY TOO, JUST TRYING TO REACH OUT AND ENCOURAGE SOME OF OUR STUDENTS BECAUSE IT'S IT'S JUST HELPS THEM, YOU KNOW, JUST REALLY GET PREPARED.

THERE ARE ALL THESE DIFFERENT OPPORTUNITIES.

YOU KNOW, DOCTOR LOU HAS HER OPPORTUNITY IN TAIWAN FOR STUDENTS TO AND WE JUST HAVE A LOT OF OPPORTUNITIES AT CERRITOS COLLEGE FOR OUR STUDENTS TO PREPARE TO EITHER GO INTO THE WORKFORCE, COME HERE TO CERRITOS COLLEGE, GO TO A FOUR YEAR UNIVERSITY.

SO AGAIN, JUST ANYTHING THAT YOU CAN DO JUST TO REACH OUT TO SOMEBODY, SOMETIMES IT'S ALL THEY NEED IS JUST A LITTLE NUDGE JUST TO TO TELL THEM.

AND NOW EVERYTHING IS ONLINE.

THAT'S WHY I'M SAYING GO MAKE A VIRTUAL APPOINTMENT.

LIKE YOU DON'T EVEN HAVE TO COME IN TO CERRITOS COLLEGE ANYMORE.

YOU CAN DO EVERYTHING. I MEAN, PRETTY MUCH EVERYTHING YOU WANT ONLINE, APPLY FOR FINANCIAL AID, YOU KNOW, MEET WITH THE COUNSELOR.

SO I JUST WANTED JUST TO SHARE THAT EXPERIENCE SO FAR THIS SUMMER.

THANK YOU. TRUSTEE BIRKEY.

BRILLIANT. YEAH.

GREAT EVENT HERE ON CAMPUS TONIGHT.

AND OBVIOUSLY FOR THE NEXT FEW DAYS.

AND KIND OF PIGGYBACKING ON YOUR POINT IN TERMS OF LIKE THE OPPORTUNITIES WE THE FIRST TIME IN A LONG TIME I'VE BEEN AT AN EVENT ON CAMPUS WHERE WE WEREN'T CATERING AND AND I MADE A COMMENT AND IT GOT AROUND TO THE CATERER AND SHE WAS LIKE, WHAT DO YOU MEAN? YOU THOUGHT THIS WAS THE THE COLLEGE'S FOOD? AND I WAS LIKE, WELL, IT'S REALLY GOOD.

SO, YOU KNOW, I JUST KIND OF ASSUMED.

AND SHE WAS LIKE, OH, I'M OFFENDED.

WHAT ARE YOU TALKING ABOUT? WE HAVE LIKE A TOP NOTCH CULINARY ARTS PROGRAM, BUT YOU ARE WELCOME TO RECRUIT.

AND SHE WAS LIKE, WAIT A MINUTE, I DO WANT TO.

AND SO, YOU KNOW, YOU AUTOMATICALLY, YOU KNOW, SHE'S LIKE, CAN I GIVE YOU MY CARD? I WANT TO KNOW MORE ABOUT YOUR STUDENTS AND WHAT OPPORTUNITIES I HAVE TO BRING THEM INTO MY MY COMPANY.

I THINK WE ARE IN THE MIDDLE OF DOING A LOT OF REALLY, REALLY POWERFUL STUFF.

AND I APPRECIATED DOCTOR FIERRO'S WORDS TONIGHT, REALLY, ABOUT OPENING UP THE OPPORTUNITIES FOR FOLKS IN OUR COMMUNITY THROUGH THE POWER OF EDUCATION AND AS BIG AS THE BUDGET IS THAT WE'RE WE WORK THROUGH TONIGHT.

I THINK IT'S ONE OF THOSE THINGS WHERE I JUST, I FEEL REALLY HONORED THAT BOTH THE STATE HAS CONTINUED TO MAKE COMMUNITY COLLEGE EDUCATION A PRIORITY.

A LOT OF THINGS HAVE BEEN CUT BACK REALLY FAR.

AND WE HAD A LITTLE BIT, BUT BUT NOT COMPARED TO SOME OTHER THINGS.

AND, AND THAT'S KIND OF AN AMAZING TESTAMENT TO THE, TO THE LEADERSHIP IN THE STATE AROUND THE VALUE OF THAT.

[00:50:08]

IT'S DISTINCTIVE.

A LOT OF STATES DON'T MAKE THAT LEVEL OF INVESTMENT.

ALMOST NONE, ALMOST NONE DO.

AND I THINK IT'S KIND OF OUR SECRET SAUCE IN CALIFORNIA.

AND WHY, YOU KNOW, YOU KEEP SEEING THESE ECONOMIC THINGS.

IT'S LIKE, OH, CALIFORNIA HAS THIS ECONOMY THAT'S LARGER THAN EVERYBODY BUT EIGHT COUNTRIES, RIGHT? AND IT DEPENDS ON WHO YOU WHO YOU COUNT.

BUT YEAH. EXACTLY RIGHT.

BUT THE AND THEN THE QUICK THING IS LIKE, WELL, CALIFORNIA IS KNOWN FOR TECH, SO IT MUST BE TECH.

BUT I THINK THAT DON'T GET ME WRONG, THERE'S A LOT OF THINGS THAT MAKE IT THAT WAY.

BUT ONE OF THE KEY THINGS IS, IS THE WAY WE HAVE SUCH A HIGHLY CAPABLE WORKFORCE AT A LEVEL THAT IS RARE IN THE WORLD, MUCH LESS IN THIS COUNTRY.

SO I THINK THAT'S REALLY IMPORTANT.

AND THEN, YOU KNOW, WHO ELSE BACKS US IS OUR COMMUNITY.

I WAS THINKING ABOUT IT EARLIER.

AND BETWEEN MEASURE CC AND MEASURE G AND MEASURE CC AGAIN THIS COMMUNITY HAS PUT HUNDREDS OF MILLIONS OF DOLLARS OF ITS OWN MONEY THE STATE CAN NEVER CLAW BACK INTO THIS INSTITUTION AS A MATTER OF PRIORITY AGAIN.

AND AS WE APPROVE THE THE SALE OF THE THE POTENTIAL SALE OF THOSE BONDS FOR THE FIRST TIME.

I JUST WANT TO THANK THE COMMUNITY FOR SUPPORTING US.

I KNOW THAT, YOU KNOW, THIS IS A HUGE SACRIFICE, GIVEN ALL THE OTHER CONSTRAINTS AND HIGH TAXES WE HAVE IN CALIFORNIA.

SO THIS IS DOESN'T IS NOT TAKEN LIGHTLY BY THE COLLEGE.

I WANT TO SAY THAT AND IT'S OUR EARNEST PROMISE THAT THIS IS PART OF A REINVESTMENT IN THE COMMUNITY ITSELF.

AND, AND I THINK THIS IS A REALLY GREAT OPPORTUNITY FOR OUR OWN COMMUNITY TO MAKE AN INVESTMENT THAT THAT HAS A HUGE RETURN.

SO THANKS AGAIN.

AND HOPEFULLY WE HAVE PLENTY OF EMPLOYEES FROM CERRITOS COLLEGE MAKING DELICIOUS TOSTADAS LIKE THOSE TODAY.

TRUSTEE GREEN.

HI. YES, I JUST WANTED TO TAKE THE OPPORTUNITY TO ALSO WELCOME UNIDOS US TO CERRITOS COLLEGE FOR THEIR EDUCATION SUMMIT 2024.

WHAT REALLY STOOD OUT TO ME WAS JUST THE TITLE EVEN OF THEIR CONFERENCE THIS YEAR, WHICH IS OUR TIME TO ENSURE EQUITY.

AND SO I FEEL LIKE CERRITOS COLLEGE IS THE PERFECT FIT FOR THIS, FOR THEIR CONFERENCE, BECAUSE WE ARE TRULY DEDICATED TO PROVIDING THOSE OPPORTUNITIES AND RESOURCES TO OUR STUDENTS AND OUR COMMUNITY.

AND KIND OF JUST WHAT BIRKEY WAS JUST SAYING THE INVESTMENT THAT WE ARE PUTTING IN WILL RENDER A HUGE RETURN. SO WELCOME.

DOCTOR FIERRO, NO REPORT.

OH. ARE YOU SURE? IN SEVEN YEARS, I DON'T KNOW IF I.

OKAY. WELL, THANK YOU, EVERYBODY, FOR YOUR REPORT.

THANK YOU, PHILIPPE, FOR THE SUMMARY.

AND AND YEAH.

WELCOME UNIDOS US AND DOCTOR FIERRO FOR ENCOURAGING THEM TO COME HERE AND OPENING UP OUR CAMPUS TO THEM.

AND WE WILL MOVE TO CLOSED SESSION.

[5. Closed Session]

WE WILL BE DISCUSSING 5.01 CONFERENCE WITH LABOR NEGOTIATIONS, GC NUMBER 5495, 7.6 AND 5.02 PUBLIC EMPLOYEE EVALUATIONS. THANK YOU.

THE OTHERS ARE ALL LIKE THEIR LIFE.

WE HAVE CONCLUDED CLOSED SESSION.

IT IS REPORTED THAT IN CLOSED SESSION, THE BOARD OF TRUSTEES HEREBY AUTHORIZES MODIFICATIONS TO THE PRESIDENT'S SUPERINTENDENT'S ORIGINAL AGREEMENT FOR EMPLOYMENT AND FIRST THROUGH NINTH AMENDMENTS IN THE AREA OF VACATION AS PRESENTED IN CLOSED SESSION.

THE VOTE FOR APPROVAL WAS SIX.

YES ZERO. NO ONE ABSENT.

I APOLOGIZE THE VOTE FOR APPROVAL WAS SEVEN YEARS.

ZERO. NO, ZERO ABSENT.

THANK YOU. MEETING.

* This transcript was compiled from uncorrected Closed Captioning.