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D. Chao and K. Salyer provided an overview of the FY25 budget, including key assumptions underlying the budget.  The committee members asked questions about enrollment and substantive discussion ensued about the fiscal condition of KIPP Adelante and KIPP Philosophers.

K. Salyer led a discussion about the key assumptions underlying the three-year financial forecast, including enrollment, attendance, and LCFF COLA rates, and discussed key risks to underperforming our forecasts.  

N. Arusta requested that an ad-hoc committee be formed to monitor enrollment and fiscal sustainability progress at under enrolled schools, including KIPP Philosophers and KIPP Adelante, and to establish goals and milestones to be met and monitoring for the forecast period.  

Item was not discussed due to time constraints.

K. Salyer presented two potential options for refinancing the New Market Tax Credit loan that finances the facility leased by KIPP Endeavor and KIPP Promesa, including general terms for a loan from Equitable Facilities Fund and for a bond offering.  K. Salyer also discussed how a bond offering preserves a clearer path to refunding the 2014 bonds if market conditions proved favorable for a refunding.    

K. Salyer presented three options for the strategy to sale the property owned by KLARE 16, LLC in Cudahy, CA, including a discussion on the potential sale price under each strategy and the expected risks and time required for each strategy.