President Roberts announced that the Board was going into Closed Session to consider student expulsion matters; conference with legal counsel regarding one case of anticipated litigation and one case of pending litigation: Natomas Unified School District v. Martin B. Steiner, et. al.; conference with labor negotiator - District Representative: Dr. Walt Hanline. Employee Organizations: Natomas Teachers Association, California School Employees Association; Unrepresented Employees: Certificated Management, Certificated Unrepresented Employees, Classified/Supervisory Management, Confidential and Unrepresented Specialist Employees; and discuss the Interim Superintendent Evaluation.

The Public Hearing on Sufficiency of K-12 Textbooks and Instructional Material was removed from the agenda and rescheduled for September 27, 2011. Action Item C. Approve Resolution No. 11-28 regarding the Sufficiency of K-12 Textbooks and Instructional Materials was removed from the agenda and rescheduled on September 27, 2011. Action Item V. Approve the 2010-11 Unaudited Actual Income and Expenditures was moved up on the agenda after Action Item E. Kaplan moved approval of the agenda as amended, Burns seconded the motion. Motion passed 5-0.

Dr. Hanline, Superintendent, proudly acknowledged the teachers for doing a great job educating the students in this district. He congratulated each school's Teacher of the Year and the District's Teacher of the Year, Jeff Galindo, for their hard work and dedication.

Kristen Rocha, President, stated that we have a common goal to work together. The children's learning environment is where the students are learning. The teachers, staff, students and community have made sacrifices. Going forward, Rocha asked the District to prioritize their spending, to build trust and stability, anything spent needs to be on the children's learning environment. She referred to an action item on the board agenda tonight to conduct a district study and suggested that this was not the time to spend this much money. Rocha asked the Board members to call her; teachers have many suggestions. She noted how the API scores are going up but expressed concern that this wasn't recognized in the Sacramento Bee. Rocha stated that teachers are educated professionals who work very hard. She asked that the money be put in the classrooms for needed supplies and not excessively used elsewhere. Rocha suggested reducing the use of outside consultants and legal fees. She stated that there are teachers who are qualified for the Director of Human Resources position and interested in being here long term for stability and unity.

The District is currently receiving SB 50 funds from Proposition 1A for the construction of new schools. A requirement to participate in this program is to spend a minimum of 3% of the General Fund?s operating budget on routine restricted maintenance. Although SB70 allows districts to not make a contribution for the 2011-12 school year, the District, based on educational and operational needs, contributed approximately 1.8% of total expenditures to the program.

In accordance with provisions of the State of California Education Code Section 71014, the Board of Trustees is asked to approve and adopt the action described below:

    ? The District is operating a Routine Restricted Maintenance Account, (RRMA).

    ? Although the requirement is suspended, the District has budgeted approximately 1.8%

Proposition 4, passed in November of 1979, established constitutional limits on the growth of state and local government spending to grow at a rate no faster than inflation and the change in ADA. AB12 requires the Board of Trustees of each school district to adopt its Gann Limit. Attached calculations indicate that Natomas Unified School District is within its appropriation limit in 2010-11 ACTUAL and 2011-12 BUDGET as established by Article XIII-B of the California Constitution. Summary is shown below.

As show above, we could have up to $115,186,413 in revenue limit funds and still be under the Gann Limit restriction. In 2010-11, we actually received $67,108,626. 

Cabinet recommends approval.

A public hearing was held to provide an opportunity to comment on the sufficiency of textbooks and instructional materials for each K-12 student. In grades K-6, sufficiency of materials includes the following content areas: Language Arts, Mathematics, Science, and History/Social Science. In Grades 7-8, sufficiency of materials includes the following content areas: Language Arts, Mathematics, Science, History/Social Science, Foreign Language, and Health. In Grades 9-12, sufficiency of materials includes the following content areas: Language Arts, Mathematics, Science, History/Social Science, Foreign Language, Health, and Science Lab equipment.

The term "sufficient textbooks" has been defined in California Education Code 60119 as each student, including English Learners, has standards aligned textbooks or instructional materials or both to use in class and to take home; this does not require two sets of materials. These textbooks and instructional materials must be consistent with the content cycles of curriculum frameworks adopted by the State Board of Education. This resolution attests that the District has fulfilled all prescriptions required by Education Code 60119. With approval of this resolution, the District will be eligible to receive any funds appropriated in the annual Budget Act.

The items that are being presented are a reflection of the direction provided by the Board in their creation of the Superintendent's objectives. The recommendation for this item is for the Board to approve the Strategic Planning Process and participants.

Dr. Hanline explained that board members and staff have the right to attend charter school board meetings. Due to the need of the Board to meet twice each month and that the Superintendent shall be the liaison between the CEO and each charter school and will be responsible to insure fiscal accountability of the charters, Board participation on the charter school boards will no longer be necessary. Teri Burns commented that there will need to be revisions made to all of the charters specific to this. Roberts stated that this change is not from a lack of engagement, it is a change in the relationship.

Due to the need of the Board to meet twice each month and that the Superintendent shall be the liaison between the CEO and each charter school, Board participation on the charter school boards shall no longer be necessary.

Dr. Hanline explained that the policy and objectives should reflect that it is the Superintendent's responsibility to ensure that each Charter School meets the expectations of the Board and State law. The Superintendent will meet quarterly with each Charter School CEO and will provide a quarterly Board meeting report to the Board addressing the following components: 1) Financial Standing; 2) Enrollment Trends (short term and long term); 3) Educational Programs (issues, trends, API standing, changes to programs); 4) Facilities (use of district and charter leased facilities); and 5) Questions and/or concerns of the Charter regarding the District. Placing this in policy and in the Superintendent's Objectives will formalize the expectations for his successor and will build the foundation for the future.

A Coordinator of School Site Services position has been added to the Classified Management Salary Schedule. Dr. Hanline explained that high schools with 1,250 students don't typically have three Assistant Principals. He announced that rather than a third Assistant Principal, Natomas High School will be piloting the addition of a Coordinator of School Site Services which will save $40,000 annually. This position can be a powerful tool with the right person in the job. Burns noted that she had heard at a CSBA conference about other districts effectively utilizing this position and was very supportive of the pilot. Heredia asked for assurance that Natomas High will have support for this pilot. Kaplan noted that historically the high schools had a third Assistant Principal when there were over 1,600 students.

Douglas Crancer, Chief Financial Officer, reported on the 2010-11 Unaudited Actual Income and Expenditures. Board Comments: Kaplan wanted to look at what level we are funding retirement. She suggested that a GASB line be included. Burns stated making a conscious decision is key. Dr. Hanline agreed that GASB needs to be a part of the budget process going forward. The actual income and expenditures have to be sharpened; be more reliable. We need to begin reinvesting in programs. We've lost 300 students. We want to develop a relationship with the associations. We have had a $9 million dollar shift, but a fiscal crisis since 2009. The legislature is writing a bill for receivership. Dr. Hanline stated that in August he wanted to re-open negotiations. We have had a $9 million dollar shift We have to be conservative, but do things that develop programs. We need to re-negotiate and protect our fiscal integrity. We took five million more than we need. Dr. Hanline stated that he was hopeful to meet with the associations to agree on reinvesting in programs and staff. Jules Tran questioned if the District is on a track of stability. Dr. Hanline responded that Douglas Crancer has a handle on the numbers. He has been working 16 hours a day, seven days a week, but he can not do it alone. There is a 2 1/2 million dollar cushion. Dr. Hanline stated that he wanted to get experts to break it down. With economic uncertainty, how much do we need three years out. Kaplan suggested budgeting three years out without a trigger. Douglas Crancer stated that we are deficit spending five million each year. Kaplan suggested taking out one million each year. Kaplan stated that numbers are misleading. We are still deficit spending. Dr. Hanline responded $2.4 million this year, 5 million next year and 5 million the following year.

CSBA Policy Updates: 

Revised: BP 1100 COMMUNICATION WITH THE PUBLIC; BP 1160 POLITICAL PROCESSES; BP 2140 EVALUATION OF THE SUPERINTENDENT; BP/AR 3513.3 TOBACCO-FREE SCHOOLS; AR 3516.3 EARTHQUAKE EMERGENCY PROCEDURE SYSTEM; BP/AR 3551 FOOD SERVICE OPERATIONS/CAFETERIA FUND; BP/AR 3553 FREE AND REDUCED PRICE MEALS; BP/AR 4158 EMPLOYEE SECURITY; BP/AR 5022 STUDENT AND FAMILY PRIVACY RIGHTS; BP/AR 5116.1 INTRADISTRICT OPEN ENROLLMENT; BP 5131.62 TOBACCO; BP/AR 5144 DISCIPLINE; E 5145.6 PARENTAL NOTIFICATIONS; BP 6163.1 LIBRARY MEDIA CENTERS; BP/AR 6163.2 ANIMALS AT SCHOOL; BB 9140 BOARD REPRESENTATIVES; BB 9323.2 ACTIONS BY THE BOARD

Delete: BP/AR 0520.1 HIGH PRIORITY SCHOOLS GRANT PROGRAM

Miscellaneous Policy Updates:

Revised: BP 3300 EXPENDITURES AND PURCHASES

Delete: BP 4217.2 RESIGNATION

Dr. Walt Hanline, Interim Superintendent

The attached enrollment report shows that the current year enrollment has dropped by approximately 400 students which is currently 21 students greater than what was projected in the 2011-12 original budget.

Burns was interested in a report on the GATE program. She recognized Omega Brewer for attending the Board Meeting on her birthday. Burns asked staff to aggressively pursue the administration of Tdap vaccines. Heredia noted on the news today there is concern regarding the level of arsenic found in red containers of apple juice. She asked staff to check our juice containers. Kaplan was interested in an update on student safety, bullying, and safe havens. She noted concern with Jefferson test scores and was interested in seeing a plan of stability/outreach. Roberts noted upcoming site visits. Two board members can attend at one time. Dr. Hanline noted his appreciation to the Board for extending his contract through June. Bruce Roberts and the Board responded that they appreciated his willingness to be here and for his work.