Ms. Alexandra Ramirez 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.

The meeting transitioned to the Chief Business Officer (CBO) report, during which attendees were acknowledged. A special guest, Angela, was introduced and invited to present. Angela explained that she would be presenting expenditures related to the student body and Student Council. Board members welcomed her participation and emphasized the value of providing students with real-world experience by involving them in board meetings.

CBO Report – Fernando Delgado, ECRCHS

• Current Enrollment Update
  • Current enrollment stands at 2,857 students as of last month.
  • Historically, enrollment declines slightly toward the end of December/fall semester.
  • Total student loss during the fall semester: 47 students
    • 23 students were exchange students.
    • 24 students transferred to other California schools (Code 196), primarily nearby schools.
  • Reasons for student departures include relocation and similar personal circumstances.
• Student Exit Feedback & Survey Enhancement
  • The school currently maintains a basic exit survey tracking where students transfer.
  • Proposal to enhance the survey to include a “customer service”–style feedback component, such as:
    • Student experience at the school
    • Areas for improvement
    • Constructive feedback to inform school improvements
  • Plan to begin implementing the enhanced exit survey in the coming semester.
• External Annual Audit
  • The school is currently working with Christy White on the external yearly audit.
  • Audit submission deadline is January 30.
  • Once completed, the audit will be:
    • Submitted to the district
    • Forwarded to the county for review
• Second Interim Financial Report
  • The Second Interim Financial Report is a legally required mid-year budget review for all California schools.
  • Deadlines:
    • LEA deadline: February 16
    • County deadline: March 15
  • The report will include:
    • Actual revenue and expenditures through January
    • Updated projections for the full fiscal year
    • A three-year financial forecast
    • Cash flow status
  • Target completion is mid-February.
• Submission & Oversight Process
  • Upon completion, the report will be submitted sequentially to:
    • LAUSD
    • LACOE
    • State
  • This report represents the final formal fiscal checkpoint before the end of the fiscal year for county and state review.
• Fiscal Certification & Implications
  • Based on the Second Interim Report, the school will receive a fiscal certification:
    • Positive
    • Qualified
    • Negative
  • A Qualified or Negative certification may:
    • Trigger additional fiscal oversight and monitoring
    • Impact the school’s renewal status
    • Indicate concerns such as deficit spending or insufficient internal controls
  • The process requires careful reconciliation of:
    • Enrollment
    • ADA
    • Staffing
    • Cash flow
• Conclusion
  • The focus remains on maintaining a qualified fiscal standing, ensuring compliance, and strengthening internal financial controls.

Associated Student Council Report – Angelina Cruz

• Purpose of ASC Expenditures
  • Student Council funds are used for:
    • On-campus events
    • Pep rallies and parades
    • Posters and promotional materials
    • Activities that support student engagement and school spirit
  • Expenditures support the needs of the broader student body.
• Class of 2026 Expenditures
  • Senior Gear: $4,000
  • Senior Sunrise: $1,000
    • Included food and decorations
  • Senior Steering Meetings:
    • Incentives used to increase attendance
    • Students received $10 Student Store vouchers to encourage participation
• ASB General Fund – Major Events
  • Homecoming
    • Total spent on ASB-ordered decorations and supplies: $7,000
    • Does not include external vendor costs
  • Mr. El Camino Event
    • Total spent: $1,408 (clarified and corrected for accuracy on record)
  • Halloween Event
    • Total spent: $14,000+ (as recorded in Business Office tracking)
• Financial Tracking Improvements
  • A formal tracking system for ASC expenditures was implemented last year.
  • Prior to this, there was no comprehensive documentation of Student Council spending.
  • Tracking remains a work in progress, but all orders are now logged regardless of whether they are charged to:
    • ASB General, or
    • Individual class accounts
  • Total tracked ASC expenditures for the year: $48,931.93
    • Includes student events, pep rallies, morale-boosting activities (e.g., Clips of Kindness), and promotional materials
    • Activities typically occur at the beginning and end of the school year
• Event Revenue & Profit/Loss Summary
  • Homecoming
    • Revenue: $45,190.15
    • Profit: $38,066.30
  • Halloween Event
    • Revenue: $6,038.90
    • Net loss: $8,000.07
    • Loss attributed to low student attendance
  • Mr. El Camino
    • Revenue: $1,822.96
    • Profit: $334.22
  • Total Net Profit Across Events: Approximately $29,700
• Discussion on Halloween Event Loss
  • Low attendance identified as the primary cause of the financial loss.
  • Students expressed limited interest in a Halloween-themed event.
• Proposed Improvements for Future Events
  • Consider changing the event location for Halloween events.
    • Current location: Corbin Bowl
    • Reason for continued use: existing agreement and history of hosting events there
  • Explore venues closer to campus to increase accessibility and attendance.
  • Improve marketing and publicity, including collaboration with the school’s marketing team (Ricardo).
  • Evaluate existing vendor agreements to ensure the school is not consistently losing money.
    • Concern raised that vendors may benefit more financially than the school.
    • Recommendation to reassess agreements that have been in place for several years.
• Historical Context
  • Previous years’ financial performance is unclear due to:
    • Senior Cabinet managing expenses independently
    • Lack of accessible records from prior years
  • Anecdotal feedback suggests prior years were more successful.
• Recommendations Going Forward
  • Future ASC leadership should:
    • Review event attendance trends
    • Reevaluate vendor contracts
    • Ensure events are financially sustainable
    • Continue refining expense and revenue tracking
• Conclusion
  • Angelina Cruz confirmed all figures were reviewed and accurately recorded.
  • The committee thanked Angelina for her detailed and transparent report.

Investment Performance Report

Presenter: Ms. Verduzco
Reporting Period: July–December 2025

• Ms. Verduzco presented the investment performance for the period covering July through December 2025, including both the Opioid Trust and General Investment Portfolios.
• All investment accounts were reported on a combined basis for this presentation.

Overall Portfolio Performance

• Combined portfolio value increased from $41,606,096 in July to $43,994,581 by the end of December 2025.
• This represents an overall 5.6% year-to-date (YTD) increase.
• Both the LFAT/Opioid Trust and General Fund investments remain stable and aligned with the District’s long-term investment strategy.

Opioid Trust (LFAT Trust) Performance

• Beginning balance at the start of the year: $33,407,633.
• After all retiree payments, the trust generated $2,170,876 in investment gains.
• Ending balance as of December 2025: $35,333,944.
• Beacon Pointe delivered a 7.1% YTD return for the trust account.

General Fund Portfolio Performance

• Beacon Pointe continues to perform strongly with a 7.1% YTD return.
• Fixed income investments, including U.S. Bank, Midland, and City National Bank, are performing as expected:
  • Returns ranged from 1.9% to 5.4%, reflecting steady and reliable performance.

Summary

• Total combined investments increased to $43,994,581, reflecting 5.6% growth YTD.
• Portfolios remain well balanced across equities and fixed income, with no significant concerns noted.
• The presentation concluded with appreciation expressed to Ms. Verduzco for the report.

• Fernando Delgado, Chief Business Officer (CBO) provided a December 2025 financial and state budget update.

State Budget Overview

• The Governor released the final State budget proposal following the State of the State address and Department of Finance briefing.
• Proposed balanced State budget: $348.9 billion for California.
• The State projects higher revenues but continues to face a long-term structural deficit.
• No major new programs proposed; the focus is on sustaining existing investments.

CASBO Governor’s Budget Workshop

• The California Association of School Business Officials (CASBO) will host a Governor’s Budget Workshop next Thursday.
• The workshop provides:
  • Five-year COLA projections
  • Fiscal outlook guidance for school districts and charter schools
• Due to a scheduling conflict with a board meeting, arrangements were discussed for remote participation to ensure representation.

LCFF and Key State Funding Assumptions

• Local Control Funding Formula (LCFF) projected 2.41% Cost-of-Living Adjustment (COLA).
• Per-pupil funding projected at a record $20,427 under Proposition 98.
• Enrollment decline is now assumed statewide, prompting conservative fiscal planning.

Statewide Education Priorities

• California currently serves nearly 6 million students, including approximately 1,300 charter schools.
• Emphasis areas include:
  • Career pathways
  • Dual enrollment
  • Workforce alignment
• Transitional Kindergarten (TK) remains a top State priority with continued expansion funding.

Charter School Impacts

• New charter accountability requirements are expected, focusing on:
  • Fraud prevention
  • Verification of financial and operational data
  • Increased oversight for renewals through June 2028
• County Offices of Education, including Los Angeles County Office of Education, will receive additional resources to support struggling districts and charter schools.

High School Funding Initiatives

• Approximately $100 million in one-time funding proposed to expand:
  • Dual enrollment programs
  • Career pathway initiatives
• Additional block grant funding to support:
  • Pathway expansion
  • Teacher training
  • Enrollment stabilization

Implications for ECR

• Expectation of a stable baseline year with no growth beyond COLA.
• Budget planning will be conservative, accounting for:
  • Enrollment contraction
  • Increased charter oversight
• Emphasis on strengthening internal controls, reporting practices, and governance procedures.

Cost Containment Strategies

• Exploration of:
  • Right-sizing staffing levels
  • Evaluating outsourced services and vendor contracts
  • Identifying operational efficiencies

Revenue Enhancement Strategies

• Potential initiatives include:
  • Establishing a School for Advanced Studies (SAS) / gifted pathway
  • Expanding Independent Study to serve students beyond attendance boundaries
  • Exploring foreign exchange student programs
• These initiatives aim to diversify revenue while aligning with State priorities.

Use of State Block Grant Funds

• Funds will be strategically allocated to:
  • Literacy and math instruction
  • Teacher professional development
  • Enrollment stabilization
  • Marketing and implementation of new programs
• Dual enrollment and career pathways will be supported using designated funds.

Enrollment and Workforce Alignment

• State guidance emphasizes aligning high school programs with:
  • College readiness
  • Workforce preparation
  • Internships and real-world experience for non-college-bound students

Governance and Communication

• Board members requested advance notice of potential budgetary or staffing changes.
• Administration committed to maintaining transparency and compliance with the Brown Act.

Next Steps

• A detailed breakdown of the State budget implications will be provided following the CASBO workshop.
• A summarized report will be shared with the Board.

• Janneyra Verduzco, Director of Accounting and Finance, reviewed the December 2025 check registers from ECRA’s City National Bank accounts.
  • The review covered payments issued from multiple accounts, including the General Account, ASB Trust Account, and Fundraising Accounts.

• General Checking Account
  • Total payments issued for December: 197
  • Total checks issued: 122
  • This account serves as the primary operating account for all payables.
• Vendors and expenditures included:
  • Allied Private Security Services
  • Amazon
  • Michi Pizza
  • AT&T
  • Brooks Transportation (school buses)
  • College Board
  • ICON (school management vendor)
  • Los Angeles Department of Water and Power
  • Legal service providers
  • Los Angeles School Police Department
  • MG Express (bus services)
• Department-level charges and recurring vendor payments were noted throughout the register.

YMC Payments

• Four payments were identified to YMC, including one amount of $12,185.
• Dates and details were reviewed.
• Administration confirmed that additional details can be provided if requested, though certain information is not publicly disclosed.

ASB Trust Account

• Total payments issued: 42
• Expenditures included:
  • Sports-related expenses
  • Event-related food vendors (e.g., Michi Pizza)
  • Reimbursements
  • BSN Sports
  • Student Store snack inventory
  • Student tournament entry fees (e.g., Hart High School)
• Clarification was provided that Student Store purchases (e.g., snacks, drinks) are funded through ASB and may include higher dollar amounts to maintain inventory.

Fundraising Account

• Regular monthly payables reviewed.
• Typical expenditures included:
  • Bagel Day
  • New York Deli
• Payments reflect routine fundraising-related expenses.

Recurring Payables / AP Review

• The general AP register includes recurring payments such as:
  • Pension-related payments
  • Charter services
  • Texas Life
  • CRM (single check noted)
• A specific ASB Trust invoice (Check #4265, dated 12/25) for student store snack inventory was reviewed and explained.

Closing

• Questions regarding specific line items were addressed.
• Ms. Verduzco was thanked for the detailed review and clarifications.

• Fernando Delgado, CBO, and Janneyra Verduzco, Director of Accounting and Finance, presented the December 2025 credit card activity and responded to questions.
• Administration confirmed that:
  • All transactions were supported by approved purchase orders.
  • Charges were aligned with approved program budgets.
  • All transactions were fully reconciled for the December 2025 accounting period.

Total Credit Card Activity

• Mr. Hussey: $10,268.28
• Mr. Delgado: $26,916.80

Major Spending Categories

• Technology
  • Google Cloud services
  • Laptop purchases
• Operations and Facilities
  • Disposable supplies
  • Cafeteria equipment
  • Water delivery
  • Routine maintenance and winter break cleaning
• Student Programs
  • Academic program expenses
  • Lodging
  • Robotics registrations
  • Culinary program groceries
  • Athletic banquets
• VAPA
  • VAPA Drama trip expenses (previously discussed)

Board Discussion

• No expenditures were identified as inappropriate or out of place.
• A request was made to ensure agenda items are presented in proper order in future meetings.
• Administration acknowledged and noted the request.

Conclusion

• This item was confirmed as the final section under the finance agenda (Roman Numeral IV).
• No further questions were raised.

• Fernando Delgado, Chief Business Officer (CBO) presented the proposed 2026–2027 Budget Planning Process and Calendar.

Purpose of the Budget Planning Calendar

• The budget planning calendar is reviewed annually to:
  • Keep all budget activities and timelines organized and aligned.
  • Ensure transparency and shared understanding among stakeholders.
  • Maintain school control over finances.
  • Ensure all key stakeholders are involved in the budgeting process.

Budget Timeline and Process Initiation

• The current meeting marks the formal start of the 2026–2027 budget development process.
• This action triggers a series of budget activities that will occur throughout the spring semester.
• The goal is to finalize a balanced 2026–2027 budget within the next six months.

Key Budget Planning Objectives

• Align spending with instructional goals.
• Meet all State and District deadlines.
• Avoid last-minute decisions and errors.
• Forecast staffing and program costs early.
• Protect cash flow and reserves.

Stakeholder Engagement and Transparency

• The budget process will be shared with stakeholders to ensure:
  • Early involvement
  • Increased accountability
  • Greater ownership of budget decisions
• Department leaders will be informed of both budget allocations and balances, a practice not previously available.

Department-Level Budget Development

• Budget discussions will occur through ITL meetings with department chairs.
• Departments will be expected to:
  • Submit budget requests early
  • Understand the fiscal impact of staffing and program decisions
• Emphasis was placed on avoiding unbudgeted requests later in the year.

Improved Budgeting Tools and Processes

• Administration discussed implementing a more interactive budgeting process, potentially including:
  • Project management tools
  • Automated reminders for deadlines
  • Attendance tracking and documentation
  • Follow-up summaries for accountability
• These tools aim to increase organization, engagement, and compliance.

Budget Education and Forecasting

• The process will help departments better understand:
  • Budgeting fundamentals
  • Forecasting
  • Trade-offs between programs and staffing
• Student Council budgeting practices were cited as a potential model.
• The Charter School Division (CSD) noted the importance of similar planning and forecasting for ASB budgets.

Contingency and “Wish List” Planning

• Discussion included preparing a prioritized list of needs and wants in anticipation of potential:
  • One-time State funding
  • Emergency or late-released grants
• Needs would be prioritized over wants.
• Any additional funding would still require Board approval before expenditure.

Governance and Brown Act Compliance

• It was discussed that sharing informational budget documents with Board members is permissible under the Brown Act, provided:
  • The communication is clearly labeled “no response”
  • No discussion or deliberation occurs outside a public meeting

Board Feedback

• Board members expressed support for:
  • Early communication
  • Increased transparency
  • Clear categorization of budget priorities
• Emphasis was placed on avoiding surprises during final budget adoption.