Mr. David Hussey led the Board members and guests in the Pledge of Allegiance to the United States of America (USA).

No public comments were received for this meeting.

Mr. Gregory Wood provided a comprehensive update as part of his CBO Report, noting that as the 2024–2025 school year winds down, there has been significant activity across the federal, state, and local levels that impact the district’s financial planning.

Mr. Wood reported that the State of California’s budget has been passed by the legislature, with minimal changes from the Governor’s May Revise. Notably, the budget includes cash deferrals, but not at the level initially expected. Rather than deferring the entire month of June’s funding, only approximately 50% will be deferred into the following month. As a result, the district will not be as significantly impacted as originally anticipated.

He also shared that the Los Angeles Unified School District (LAUSD) Board approved its $18.8 billion budget, which includes a $3 billion drawdown from reserves to address its deficit for the upcoming year. However, LAUSD’s adopted budget does not yet reflect:

• Any adjustments or allocations for expiring labor contracts (e.g., UTLA)
• Anticipated reductions in federal funding
• Potential costs tied to ongoing major sexual abuse claims, which may involve issuance of bonds

In response to questions regarding whether the state budget is final, Mr. Wood clarified that while the legislature’s passage of the budget gives it final authority, budgets remain flexible and are essentially spending plans. Should revenue projections fall short or expenses rise unexpectedly, budgets can be revised at any time. Likewise, if funding improves, adjustments can also be made to increase budget capacity.

He emphasized that:

• The district must adopt a budget based on the best available information at the time.
• If actual funding differs significantly, a revised budget may need to be brought to the Board for consideration.
• This includes responding to variables such as average daily attendance (ADA), which directly influences funding levels.
• The administration remains committed to keeping the organization informed of any budget updates throughout the summer and into the new school year.

Finally, Mr. Wood noted that several additional financial items would be discussed under subsequent agenda items, including other updates relevant to fiscal planning.

Mr. Gregory Wood presented the Investment Update as of May 2025. 

Mr. Wood reported that as of the end of May 2025, the District held approximately $40.5 million in total investments, with:

• $32.49 million in the OPEB Trust
• $8.03 million in the General Investment Accounts

The OPEB Trust began the fiscal year on July 1, 2024, with a balance of $30.84 million. As of May 31, 2025, the District has made OPEB retiree payments totaling $581,067, while investment gains have totaled $2.23 million, representing an investment return of 6.9%. After accounting for payments and gains, the OPEB Trust experienced a net increase of 5.3% year-to-date.

The General Investment Account, which includes holdings managed by Polen Capital, Fiduciary Management, Beacon Pointe, and U.S. Bank, also saw steady performance. The combined general investments reached $8.03 million at the end of May, with a 2.8% return for the month and a 5.4% year-to-date increase.

Mr. Wood highlighted that the District's actuary is currently working with HR and has received updated health rates to begin their actuarial review. A formal OPEB actuarial report will be issued once the fiscal year concludes. Given the performance of the investments and the current funding position, Mr. Wood expressed confidence that the District remains fully funded, potentially with a continued surplus, as was the case in the prior year.

Mr. Gregory Wood presented the Financial Update as of May 2025. 

• The 2024–2025 school year has officially concluded with all 180 instructional days completed.
• Final enrollment at year-end was 2,826 students, down from 2,945 at the beginning of the year, and down 236 students year-over-year compared to the prior year’s 3,062.
• The district’s Average Daily Attendance (ADA) used for funding was 2,687.25, locked in after Month 8.
• Based on projections, LCFF funding for 2024–2025 is expected to be approximately $35.7 million.
• Despite a 2.3% COLA for 2025–2026, declining enrollment and ADA are expected to cause a net funding loss of 1.5%.
• Preliminary planning for 2025–2026 enrollment assumes a drop of around 100 students, based on projected 9th grade enrollment of ~650.
• Caution is urged in budgeting, given public school volatility and the non-binding nature of student pre-enrollment.
• Mr. Wood referenced School Services of California and FCMAT calculators as reliable tools for financial forecasting.
• LCFF supplemental funding based on a 33% free/reduced lunch rate remains a key contributor.
• Trust fund balances were reviewed, including a planned transfer of $2,048.29 from ASB General to related trust accounts.
• Updates were shared regarding use of inactive sports program funds (e.g., Aquatics) to support student scholarships via a transparent application process.

Additional Note:

• The LAUSD $18.8 billion budget was approved with a $3 billion deficit, relying on reserves without factoring in pending labor negotiations for FY 2025–2026.

Mr. Wood reviewed the May 2025 check registers from the District’s City National Bank accounts, following the standard format showing check number, payee, amount, and description.

General Account (Acct. 1761)

• Total disbursements: $386,726.59
• All payments made via electronic ACH, primarily for:
  • Retirement plan contributions (403B)
  • SISC health premiums
  • Life insurance premiums
  • LegalShield payroll deductions

Fundraising Account

• Total disbursements: $1,964.94
• Four checks issued for:
  • Food for events and staff (e.g., Teacher Bagel Day)
  • Reimbursements
  • Refund for SBAC award/Grad Night

ASB Account

• Total disbursements: $140,921.41

City National Checking Total for May 2025:

• $1,098,260.70

Mr. Wood noted a continued transition toward electronic payments (ACH) for operational efficiency and vendor management. No paper checks were issued for general account expenses.

Mr. Wood presented the May 2025 credit card charges, beginning with a summary view of the total balance of $72,049.75 charged for the month.

• The charges were broken down by cardholder as follows:
  • Mr. David Hussey: $48,076.27
  • Dr. Gregory Wood: $23,973.48
• While the summary spreadsheet displayed total amounts, detailed transaction records were provided in the attached materials, including:
  • Vendor names
  • Specific expense purposes
  • Charge amounts
• Mr. Wood noted that this level of itemization supports fiscal transparency and internal accountability.

Mr. Wood presented the renewal of El Camino Real CHS's medical insurance policy with Self-Insured Schools of California (SISC), one of the largest school district insurance providers in California and the country.

SISC operates on a federal fiscal calendar (October 1 start), while the school operates on a June 30 fiscal year. Therefore, the current rates will continue through the first three months of the school year, with new rates effective October 1.

Rate Increases:

• Across most medical plans (HMO, PPO, and Kaiser), a 7–8% increase is projected over the nine months following October 1.
• No increase in premiums for dental and vision plans.
• A minor increase of $2/month (34%) was noted for life insurance, the first such increase in recent years.

Plan Options:

• Employees are offered a composite rate plan (same cost regardless of family size), with coverage options including:
  • Anthem Blue Cross (PPO – high and low coverage options)
  • Kaiser Permanente
  • CaliforniaCare HMO
• The District covers the full cost of the "low" option for employees and their eligible dependents.
• Employees opting for the “high” coverage option are responsible for the difference via payroll deduction (e.g., ~$3,000 annually for upgraded Blue Cross coverage).

Medicare Considerations:

• For active employees eligible for Medicare (age 65+), there is no impact on composite rate costs.
• Medicare coordination applies more meaningfully in retirement.

Overall Impact:

• Due to a slight projected decrease in total covered employees (~0.20 FTE fewer), the overall school cost increase is expected to remain near 5% despite the 8% rate increase over nine months.
• Mr. Wood recommended approving the renewal despite rate increases, citing that the trends are in line with the broader medical insurance market.

Ms. Emilie Larew presented the 2025–2026 contract renewal for Peace of Mind, a non-public agency (NPA) that provides specialized services in support of students with disabilities.

• A rate comparison chart was provided to the Board, consistent with prior years, offering a comparative analysis of rates charged by multiple NPAs for special education services. Ms. Larew noted:
  • Larger agencies often maintain non-negotiable rates.
  • Smaller agencies may allow for negotiation on both rates and minimum hour requirements, allowing the school to secure cost-effective and compliant services.
• Services provided by Peace of Mind include:
  • Behavior Support Planning
  • One-on-One Behavioral Aides
  • Vision Intervention (VII and VIB)
  • Supplemental Academic Instruction (SAI)
• Ms. Larew explained that while some rates have increased for the upcoming year (notably behavior services), VII and SAI rates remain unchanged from the previous contract. The rate increase had been communicated by Peace of Mind in advance.
• Peace of Mind staff are not ECRA employees, but rather external contractors, used primarily:
  • When no internal staff are available.
  • To ensure program continuity during staffing shortages or for specialized inclusion support.
• A brief discussion was held regarding supplement vs. supplant distinctions under special education funding regulations, particularly in relation to using special education funds for long-term substitutes. Ms. Larew confirmed that:
  • Funding usage depends on the nature of the staffing gap.
  • Compliance with credentialing limits (30–60 day maximums for non-special education credentialed substitutes) is strictly monitored.
• The proposed contract terms are consistent with last year’s agreement and were reviewed by legal counsel (Young, Minney & Corr, LLP).
  • Updates were made to reflect recent state regulatory changes applicable to NPAs.
  • New contract provisions include clarified language on termination for cause and Individual Service Agreement (ISA) compliance.

This item is tabled for the regular board meeting

Ms. Rodriguez presented the 2025–2026 substitute contract review and rate comparison for external substitute staffing vendors.

• A comparison of four vendors was provided:
  • Scoot Education (primary provider)
  • The Education Team
  • Teachers on Reserve
  • Kelly Services (not actively used in recent years)
• Scoot Education remains the preferred vendor for both instructional aides and substitute teachers due to:
  • Strong working relationship
  • Reliable service history
  • Consistent performance, including during critical needs such as the recent teacher strike
• Rate Structure:
  • Scoot provides rates for:
    • Short-term and long-term assignments
    • Half-day and full-day rates
  • Other vendors generally bill at hourly rates.
  • Notable exception: Teachers on Reserve includes billing for lunch breaks, resulting in slightly higher overall costs.
• Pricing Update:
  • Scoot has maintained the same rates since 2023, and will implement a 3% rate increase effective July 1, 2025.
  • The Education Team, Teachers on Reserve, and Cross Country were also utilized during the recent strike, and remain available as supplemental options if additional staffing needs arise.
• Ms. Rodriguez emphasized the importance of maintaining contracts with multiple vendors for flexibility and emergency coverage, while continuing to prioritize Scoot as the primary substitute service provider.

Recommendation:
Ms. Rodriguez recommended continuing the contract with Scoot Education as the primary substitute staffing vendor for the 2025–2026 school year, with auxiliary use of other approved vendors as needed.

Mr. Hussey presented the proposed 2025–2028 contract with the Los Angeles County Office of Education (LACOE) for participation in the California School-Based Medi-Cal Administrative Activities (SMAA) Program.

• The SMAA program allows school districts to recoup federal funds for performing certain health-related administrative activities, such as:
  • Medical-related counseling
  • Nurse time and documentation
  • Outreach and coordination of health services for students
• Staff members participating in these activities track their time using a Random Moment Time Survey (RMTS) method.
  • The data collected is submitted for reimbursement through LACOE, which acts as the liaison and compliance monitor between participating districts and federal Medi-Cal agencies.
• There is no cost to El Camino Real CHS for participating in this program.
  • The contract simply enables the school to be eligible for reimbursement for services already being provided by staff in the normal course of their duties.
• LACOE provides compliance support and audits claims before submission to ensure all federal requirements are met.
• The contract was brought forward for approval due to its three-year term (2025–2028).

Recommendation:
Mr. Hussey recommended approval of the contract, highlighting it as a cost-free opportunity to recapture funds in support of school-based medical-related activities.

This item is tabled for the regular board meeting