2024-06-26 | Special Board Meeting

001Okay, welcome to Welcome everyone to the Taylor School District special scheduled board meeting with the budget hearing in it on June 26, 2024, where our mission statement is to educate, engage, and empower those we serve. And our vision statement is that we be the innovative destination station where all succeed. And we call this meeting to order at 6:02 p.m. Mrs. Thomas >> here. >> Mrs. Shufeld is not here. Mr. Wright >> here. >> Miss Black is here. Mr. Heath >> here. >> Mr. Myers is not here. Mr. Thomas >> here. >> Okay. Will everybody please stand and face the flag? >> I pledge algiance 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. >> Okay. Next

002item on the agenda is board and discussion items revisions. Approval of agenda and there yes there is going to be a revision under schedule reports that will now be moved down to discussion items and it'll become number one and we will recess to the budget hearing after discussion items. Go ahead. >> All right. Item number three, revisions, approval of the agenda policy 0166. Is there a motion to approve the agenda as stated by Miss Blot? >> As revised. >> Motion by Mr. Heath. Is there support? >> Support. support by Mrs. Thomas. Miss Shefelt is absent. Mr. Wright is a yes. ML >> yes. >> Mr. Heat. >> Yes. Mr. Myers is absent. Mr. Thomas, >> yes. >> Mrs. Thomas, >> yes. >> That carries five to zero. >> Okay. Discussion items tonight. We will start

003with the assistant director of food service, Colleen Concaid. Wellness policy update. >> Good evening, >> Colleen. Wellness policy. This policy background is established by nutrition act 2010 policy outline. The policy outlines our commitment to fostering a healthy environment for our students and we believe a strong wellness policy is essential for promoting healthy habits, creating a thi thriving environment in our school district. The Healthy Hunger-Free Kids Act of 2010 requires local educational agencies such as ourselves to update or modify their wellness policy as appropriate or at a minimum of every three years. The wellness committee meets on a regular basis throughout the school year and assessments are made to ensure progress is being made in the district's wellness policy and procedures. A completed local wellness policy will have 10 essential components. I outlined those in the

004handout that uh was provided before. And those required components encompass topics such as nutrition standards and education, goals for physical activity and methods of pro promoting a healthy lifestyle. So if you will review those with me, our changes that we've made, the first update is a revision. You can see we have the display over here. The first update is a revision to our promotional material. The food pyramid, which many of us grew up with, um, was retired over a decade ago. The US The USDA replaced it with a new system called My Plate in 2011. The pyramid did not illustrate portion sizing and overemphasized grains. My plate provides a clear picture of portion sizes with an emphasis on fruits and vegetables. So, those posters will go into the high school. Um and then the um

005one with just a plate will be in our elementaryaries and middle schools. The next revision um is just an inclusion of specific language to outline appropriate meal time aotments to ensure that each student has adequate time to eat. Meal times are an opportunity to develop healthy eating habits and allow students to connect with peers. Students show that well-nourished students, I'm sorry, studies show that well-nourished students have better concentration, memory, and academic performance. We suggest 15 minutes for breakfast and 25 minutes for lunch. You may have already seen these in place, um, but in this revision, we're simply including the concept and language into the policy. Um, these are our share carts. Um they've already been a successful part of our school district's breakfast and lunch programs. Um they're available during meal times and it allows

006students to donate items that they wish to not eat and that um in turn allows students who would like additional food um at no additional cost. This practice maximizes student nutrition program dollars and the availability of nutritious foods. And then the last one, uh, regarding the nutrition promotion, we included our commitment to partnering with vendors and food suppliers who grow locally sourced fruits and vegetables. Um, for example, apples from Riveridge or in Sparta, Michigan, which is just north of Grand Rapids. Uh, cucumbers and green peppers from Peron Produce and tomatoes from the Schilling family farms. Um, just to name a few. And I've listed some of those websites there. encourage you to check them out and see how they help our schools. So to summarize, um the proposed updates to the local wellness policy address

007the key findings of the tri triannual assessment um and align with the best practice for student wellness. Um appreciate your time. The policy is posted on the district web page and then once the assessment is completed and approved um the new policy will be posted. >> Are there any questions or comments? So this is a policy. It will have to have a second reading the next meeting. >> Any discussion? Okay. >> Thank you, Colleen. >> Thank you. >> All right. Um, number two, overnight conference requests 2024 Michigan CTE Summer Leadership Conference. Carly, you're online. >> Um, yeah. Hi everybody. Sorry I couldn't make it in person. Um, so yeah. Um this year they have a um a summer CTE leadership conference that I would like to attend. Um it's a chance to network with other

008CTE directors and CTE teachers and um I I kind of like the fact that it's in the summer before school starts. That way I'm not out of my building when students are there. Um so I wanted to take that opportunity to go to a summer PD this year instead of going to one in the winter when school's in session. Um, and our um, we do have a countywide audit going on. Um, it's due at the end of August. I have everything on my end complete. So, I plan on bringing everything with me to that conference and then also having a chance to sit with our county directors and go over everything for that audit as well to make sure that we have everything in place and ready to go. >> Okay. Are there any comments,

009questions, discussion? Thank you, Carly. >> Okay, thank you. >> Number three, overnight conference request 2024 MASB Summer Institute. That's me. I've been on this board a while and I haven't been able to go to any overnight conferences, the summer institute, the fall institute. Uh I have taken classes through Rha and uh uh Caspa, but I haven't been able to take all day classes. So I'd like to do that because I can fit it into my schedule. And uh as you can see, the uh breakdown is on your page. It is in Gaylord. I will be staying at the mainstay suites. formerly I think that was a comfort in. So does anybody have any questions? >> I will take >> it is out of uh is it out of our fund or is it out of

010general funds? >> It's out of the board budget. >> It's board budget. Yeah. Are there any questions? Okay, thank you. Number four, Taylor High School certificate of completion requirements. Jason, >> good evening. Thank you. Uh, so what you have in your hand was in your packet. We had to add the Griffin hour for our students that are on the certificate of completion. So that's bumped up from 19 credits to 20 credits. So, it was just we just needed to update this for the purpose of adding the Griffin Hour in there for the graduation requirements for the students that are receiving a certificate completion and because it's part of the graduation requirements, we need board approval on that. >> Okay. Are there any questions for Mr. Bolt? >> Was the Griffin Hour grant funded? >> Griffin

011Hour is the course that the students take while they're at the high school. >> No, I understand. But I thought that was grant funded for the teachers pay. >> For the teachers pay. >> Yes. >> It's part of their normal hours while they're at the while they're at the school. >> Okay. My understanding was that would the funding for the teachers for that was through a grant. That's what I was asking. That's all. >> No, it was just part of their normal >> Okay. >> Hours within the school day at the high school. >> All right. Thank you. Are we re-evaluating Griffin Hour and looking at having it leave the schedule? >> So, we've moved Griffin Hour to first hour and part of the goal that I'm working with Mrs. scope and the rest of

012the staff over at the high school is really working at identifying and make this as part of the MTSS process along with the other programs and initiatives that they are doing at the high school to be more holistic with the whole child learning that's going on doing a lot of the SEAL training but also looking at how we're going to be using that for for the MTSS tier one and tier 2 instruction throughout the day to help our students within their academic programs. So, we're looking to keep it as part of our normal high school schedule for the long term. >> I thought we were getting rid of it. >> We had discussed >> getting rid of it. So, that's a kind of a surprise. um they were kind of gonna add a new class,

013but >> do you have any reasoning why they decided to keep it as far as instead of doing something else with it? >> Because it gives us an opportunity to build an M with MTSS, especially at the high school because it's a lot of pull out. It's hard to pull students out of their normal general ed courses. So, this gives an opportunity for us to be able to pull those students out that need different supports within our intervention. because it's an opportunity to continue to do the SEAL programs that we're trying to do. It's in the school and and continue to maintain versus doing a zero hour or home room. It's still serving the purpose that that's why I'm working with Mrs. Scope and her teams to really put more structure behind what we're doing

014versus just having that free time during what's going on. So really we're looking at making it more accountable for the purpose of having this to built into the schedule, but really it fits into what we need to do with our um our partnership agreement that we're doing with the state of with MDE or we need building in that time for interventions for MTSS. So, is the request for this to increase the credit hours so that we add Griffin Hour in? Is that what this is? >> Yeah, this it's for them to get their the so their power that hour counts towards their credits for graduation. >> Do we have a plan to address safety during the Griffin hour? Yes. >> I know that has been a huge issue that during Griffin hour kids have basically

015run the halls. Well, they've gone into other classrooms, not in their own Griffin hour. >> Correct. And that's part of what we're really working on the structure of the students that need to leave unless they're doing to like a team meeting or a club meeting and those types of things. But they're really identifying those students that need to be pulled out and assigning teachers to have students go there. So, if they need math help, ELA help, those types, they're going and they're assigned to those port going to see those teachers in the morning during that Griffin hour period. But if they're not getting pulled out to go get intervention for MTSS, they're staying in a classroom, found a structured plan, and that's what I'm working with Miss Scopen right now of working developing what are

016those going to primary themes going to be per month that we're really going to be focusing on. And safety is definitely so with moving it to first hour, the students that are in their early college, they're only going to be in their fifth hour for 15 minutes. uh which can tend to it's it happened this past year as well. >> It happens in for the students that are going to the dual enrollment. It's also going to affect our students that are going to CTE knowing that those are those primary courses those students are going to be going to. they're just going to have to leave early and do what they need to do and miss that part of what they need to do during Griffin hour because we don't want to wait take away those

017opportunities to have those extended academic opportunities for those students to either do the dual enrollment or go to CTE because those are the issues that we in the conversations we have by moving it to first hour instead of fifth hour is >> students are just going to have to either leave early miss that portion because they need to meet the requirements for either going to the colleges or going to CTE programs. Are the are our counselors looking at if these are critical classes for like my son last year had AP geometry and he got to be in the class for 15 minutes which is tough to learn geometry in 15 minutes. Talk with a counselor. Uh the option was to drop it which you need a math credit or um you know figure out another

018way to make up his math credit. So, if we can I'm sure I know there I know Stephanie's son was in the same boat. Um, so if we could touch base with the counselors to see, you know, I don't think there's a ton of kids that that take advantage of that program. Um, for at least the dual enrollment, but I'm sure there's there more that may take or there equal amount that take the CTE. I just don't want to shortside them, the students. um you know to leave a critical class >> to go to uh you know whether it's CTE dual whatever it is. >> Yep. And you and I discussed that before and I did meet with the counseling departments to make sure that we sit down with those students that are taking those

019classes. We pretty much sit down shouldertoshoulder and see what we can do about okay >> to the best of our ability because again obviously bands only done certain hours. So, if they're a band student and those types of classes, >> yeah, >> there's going to have to be some give and take there, but they're going to do the best they can to okay, >> work with those students to >> sure >> make those courses, those scheduled work for them. >> Okay. And being that uh Griffin hour is part of our regular curriculum. Now, if it passes, then there's going to be a tenants policy as well. >> Yes. >> Perfect. >> Were other options explored rather than keeping Griffin hour? Were there other things that were looked at to implement that might satisfy that need

020that you all are looking for but also um not affect students? >> So the conversations that I had with the administrative team over at the high school is that's why we're moving to fifth the first hour versus the fifth hour because of just trying to see what we can do and as I mentioned bless you. >> Thank you. That is also part of the plan that this is the year that we need to get return on our investment. If this is if it's not working, if we're finding where there's more attendance issues and stuff like that, we're going to definitely go to as I go talking to the board, which is my whiteboard and we need to restructure this. So, I told him, you got one more year to get this figured out and worked

021out because of the attendance issues and the things that we were having this year. That's why I mentioned there's got to be more structure to it and if it doesn't work, we're going back to the board and we're going to figure something else out. >> So, the high school administration wants to keep Griffin. >> Yes. >> They're asking for us to keep it. >> Yes. >> When was that discussed? Because the last time last I heard we were getting rid of it and they didn't want it. >> So, when was it discussed? >> Discussed for the last two months when I've been meeting with their teams. >> So, there's going to be data collected. Yes. >> Get all the data. >> Are there any other questions or comments? >> Anybody? Okay. Thank you, Jason. >>

022I think I do. >> Okay. And number five, 2023 2024 amended budget. Thank you very much for the opportunity to present the 2022 2024 budget. Uhoh. Dent. She's One moment, please. Okay, thank you. I'm ready. Okay. In terms of the fiscal year 2024 final budget amendment, uh, according to the Uniform Budgeting and Accounting Act of 1968 under section 141.434 434 and the revised school code under section 3801219. School districts must submit an annual budget and have it adopted by the board of education by July 1st of each year. And this is what I'm doing to satisfy that you know that's why we have the presentation. And then according to the uniform budgeting act budgeting and accounting act of 1968 under section 141.437 school districts may amend the budget to stay within the appropriated budget. Now

023what does that mean? The board of education appropriates the budget and the school district. We always want to make sure that we're within the appropriations what the board has appropriated. District budgets and funds for consideration this evening for both fiscal year 24 and 25 are as follows. General funds, funded programs or grant funding, food service or cafeteria funds, debt fund, center programs fund, capital projects fund. These are currently the active funds within the district. In terms of the general fund, uh, ending 2024, uh, you see the audited actual amount for fiscal year 23 was $72.2 million in revenue. The original budget adopted uh, back last June was $72.3 million. The first budget amendment came in at $76.4 million in revenue and the final budget is $80 million in revenue. And you know the the biggest

024reason why you will see the changes that way is because when we adopt these budgets in June, >> the state hasn't adopted their budget. So in the beginning of the year, you know, when uh school districts, you know, go to the board to adopt a budget in June, this is our best estimate, you know, but by the time we do a final budget amendment, we know what our state categoricals are and things of that nature. And so we're ending revenue at $80 million. Our total expenses, you know, starting with the fiscal year 2023, it was at $63.9 million. The original budget last June was adopted at 63.3 million. That was their best estimate at that time. Then the fir during the first budget amendment uh total revenue total expenditures was adopted at $69.3 million for

025a final budget amendment uh at 72.8 million. So, um, as of July 1st for as of the final budget amendment, um, the fund balance was at 25 million. So, let me back up a little bit. For fiscal year 23, the fund balance was 17.8 million. Then for the original budget, the fund balance was projected to be 27.6 million for the original budget. The first budget amendment adjusted the fund balance to the actual audited fund balance for fiscal year 23. And so you'll see that $25 million there as well. So, the projected fund balance as of June 30 is $33.2 million. And let's talk about the change here. So, we're projecting that we will give back at least about $8.1 million to the fund balance. And this is a a projection until we actually have an

026audit. after the audit, you know, it may be a little bit more, but we'll see after the close of the operations. This right now is our closing time, and during our closing time, you know, we have the following things going on. Slight adjustments have been made to the current budget to cover projected end of the year expenses for summer school. So, summer school is split between two fiscal years. is is split between June is split between the current fiscal year and the next fiscal year. And we're going to pay for summer school um out of 31A and title one. And we will use the general fund for administrators because we often can't uh fund administrators for this purpose on the grants. During the year, we had staff reclass from grants to the general fund due

027to MDE audits. So this significantly impacted the budget. Uh what happened was uh before the audit there were staff being um paid for their salaries and benefits using grant funding. Uh for example um the 31A grant had administrators in it and that's not allowable. So, you know, when you the new administrative team came in, we had to reclass those people back into the general fund because this item was not allowable. So, it increased our expenses. So, mind you, our grant fund sits in a a different fund. I'm talking about the general fund. So those expenses had to be reclassed back to the general fund increasing our overall expend expenditures and this was pretty significant. This budget amendment also accounts for the increase in utilities. Um if you look at our current economy, you know, we're

028in a inflationary state. everything has gone up, you know, and we're trying to pace our salaries to go up as well because, you know, we've all felt the inflation and it has greatly impact district expenses as well. I also have to make sure that I have enough budget to pay any outstanding invoices. Yes, when we use purchase orders, it encumbers the funds and I know exactly where we are. But, you know, coming in mid year, you know, coming in in October, uh, we didn't always use purchase orders. So, we have some invoices floating around here. And I have to make sure I have enough budget to close out the year. So, that to close out the year from those um, outstanding invoices that I wasn't able to really account for because purchase orders wasn't used.

029And then we have adjustments for severance payouts. Um and then you know we have um at least 30 or more staff that are retiring and they're retiring as of June 30. So I have to make sure I have enough budget to cover those severance payouts. And then um we had a lot of special projects this year. And what I mean by that, you know, it just gives us the ability to just operate our programs as a district. Anytime there's a dream out there by one of our teachers or they want to implement a program and it wasn't necessarily in the initial budget, but we want to do it. That's going to cause a adjustment to the budget because we didn't foresee that we wanted to do that. And that's normal for school districts. We have

030to be able to dream and adjust programming and these create budget deviations. Anytime somebody wants to do something special and it's over and above your budget, that's going to create a deviation. And then note the following funds are included for approval in the board of education packet. I just want to repeat it again for the minutes. The general fund, funded programs, capital projects fund, debt service, food service funds. Okay. Center program funds all need to to be awarded and approved by the board to operate in the next fiscal year. That's why we need a budget so that we can operate. So, uh, what you're looking at now, you're looking at the final budget amendment for the grant funds up there. You see that title up there that says grant funds? And I prepared a a

031short subnopsis for each fund to let you know you know where we ended. For fiscal year 23, the audited actual for the grant funding was $30.9 million for total revenue and then we ended at $41 million, you know, as a final budget amendment. Why? you know, our states and state and federal programs director, she's been pretty busy bringing in grant funding, okay, to the tune of $41 million. We've uh been awarded a lot of grants. Um expenditures will always match whatever the revenue is, and that gives us the ability to birth that program, if you will. you know, if we have $41 million worth of grant funding, then I have to set aside $40 million worth of expenses so that we can implement the program. Okay? And then you're going to always have a projected

032fund balance of zero because it should always net food service. We started with a audited fund audited uh from our 2023 financials. Total revenue was at 4.2 2 million uh and there was a fund balance of 137 million. Uh total revenue is projected for the final budget amendment to be at 4.5 million with expenses coming in there or about we'll see after the audit. But then once again this fund should be it should net net out. You know, the Michigan Department of Ed doesn't really like food service to have a balance at all because the Michigan Department of Education wants food service to spend all that money preparing and providing food for our students and our food service director does a wonderful job always um tracking that for our center programs. our center programs uh

033POH high and ASD. Um the rest regular special ed program is uh imposed or contained within the general fund, but these two programs are pulled out in its separate fund. For fiscal year 23, uh the total revenue for this fund was at $4.8 million. um expenses was was about the same because you see it nets to zero. Uh the final budget amendment is at 7.1 million and then the expenses also net and this program is through Wayne Resa. It's called act 18 and we uh received this funding from Wayne Resa. um they have different um times during the year where we adjust the budget and amend the budget to support the pole high and the ASD program for our special students. In terms of debt funding for fiscal year 23, the total revenue for the

034debt fund from uh taxes levy was 3.8 million. Expenses were at 4.6 6 million and then you know you had a fund balance July 1st of 700,000 and then a fund balance of 1.7 million in fiscal year 23. Spanning forward to the final budget amendment u total revenue was $7.7 million based on what we levied. Our levy this year was higher than it will be next year because we don't have the same level of debt fund expenses. For example, for this year, uh, our total debt fund expenses are at about $8 million. And going into the next year, you know, we didn't have that same expense. So, we don't have to levy as much. So, commercial properties are going to see a drop in their taxes for the fiscal year uh coming up because we

035don't have such a big bill. Projected fund balance for the debt fund is $1.4 million. And for capital projects, uh there was no original budget uh for that was prepared for this particular fund. Uh so the first budget amendment uh was at $800,000. And what is that? It's really interest because um we sold bond funds in 22. We didn't sell any bond funds this year, but we will sell more bond funds next year because the district was awarded by the community $130 million bond. And for during fiscal year 22, they sold about 29 million of those. So, we will sell more bonds next year, but we didn't sell anymore this year. That's also why our um tax levy dropped because we don't have to pay any um debt because we didn't sell any bonds. So,

036uh the first budget amendment was $878,000 in interest. The for the final budget amendment uh that revenue amount which is only interest is $1.4 million. So, the final budget amendment, it's an estimated, we didn't spend $12 million, but that is set aside to pay bills for engineering costs and things of that nature that has been going on for project bond projects. And I want to make sure that I have enough money set aside to pay any bills through June 30 that is due from this particular fund. So the projected fund balance is uh $16.1 million, but I also project it's going to be more than that. And so this ends the presentation for 2024. Um this um L4029 that is for fiscal year 25. Okay. Uh >> oh. They should have been on the front

037desk, but if they're not, you know, during the break, I can make some copies. >> Okay. Can we get all this all this information available to us? You just throw it up on that screen. >> Sure. >> Okay. Yes, >> I do have a few questions about the amended budget. >> Yes. >> Um, so in the very beginning of your presentation, you talked about there were grant funds that were not being used correctly for positions and so you had to reclassify those under general fund. Do you know how many positions that was? I don't know exactly how many at this meeting, but I can find out and get that information to you as as well as the cost of it. So, I'll write that down as a to-do on my to-do list. So, one moment

038I'm going to take a note here. >> Okay, go ahead. Thank you. Um, and then I do have a second question too. >> Yes. >> Um, so you talked about how there were invoices loading around in the district because purchase orders were not submitted for those invoices to be paid. Yes. >> Correct. >> Yes. >> So what are we doing to strengthen the internal controls around them? >> Okay. Well, the first thing that I did was when I came in was um I reiterated the process, the purchasing process to district leaders um to everyone that had responsibility with the budget. And I reiterated that we must follow district policy, which is using a purchase order, and that it is it is a loose internal control. when anyone picks up the phone and makes a a

039purchase, it's a loose internal control. And I have had many budget meetings with with um different departments and schools to go over that purchase order process um and the requirements, proper requirements of a purchase order. But seeing that I came, you know, in October, the spending started in July and so you had this weakness and so that is what has happened. But I have done several trainings with different groups and one-on-one just to strengthen that process because um you have to use a purchase order in order for me to not have a deviation in my budget that I can't project or predict. Um when people pick up the phone and and make orders and it's it doesn't hit the system first, that's really how districts go into deficit. Okay. Are there any other questions about

040the amended budget for this year? No more discussion? No. Okay. Then our next item for discussion, we will recess for our budget hearing for the 2024 2025. We didn't hear. >> Okay. Is there a motion to recess to the budget hearing? >> Motion by Mr. Heath. Is there a second? >> Second by Mr. Thomas. Mr. Shefeld isn't here. Mr. Wright? >> Yes. >> M. Basy. Yes. Mr. Heath. >> Yes. >> Mr. Myers is not here. Mr. Thomas. >> Yes. >> Mrs. Thomas. >> Yes. >> Okay. We will recess at Who's got the time? >> 6:44. >> Okay. 6:44. >> Okay. Take it away every Okay. Yes. Okay. Okay. Thank you very much. In terms of the fiscal year 25 budget, thank you for the opportunity to present this budget. Um the fiscal year the same

041funds that I mentioned before applies to fiscal year 25 as well. This is the district's plan that we use to implement programs of the district. So what you see first is our tax levy. Our truth and taxation is what they call it. First of all, I want to point out that our operating uh levy has gone down to 17.7588 uh from 17.7660 from the just from the year before and that's due to the headley roll back. And the only way that districts can bypass this particular reduction is by going to the voters and getting um a levy approved to cover the difference between 18 mills and what has been lost. Usually districts will apply to go up maybe three mills and it'll be good, you know, for several years until the Headley roll back exhaustes

042it. So districts are always able to uh levy 18 mills and that's what a district wants to do. So I just want to make that note. And then for our debt where you see the de this is how we pay our the loan on the bonds if you will you know uh for the current year the debt levy was at 3.64%. you know, we had a big $4 million balloon payment on the fiscal 22 bond debt that we don't have this year. And so, as a result of that, the debt levy has gone down to 0.85%. and this information, you know, because we never want to overlevy the community, you know, it's vetted by at the county level and it's also vetted by Baker Tilly for us, you know, because I I comp it it,

043but I want to make sure that I'm right. So, this is what the district is levying in terms of taxes. Now in terms of the 2425 fiscal year budget, you see the audited actual, you know, at 72.2 million with a fund balance of uh $25 million in terms of my final budget amendment. And then after the audit, it will be actual after the audit. Now, an audit takes us until about midocctober to complete. So that's our next assignment as a finance department by the way. But for fiscal year 25, the original budget is at $73.6 million for revenue. And I want to what I want to tell you about this revenue is this is the superintendent and my best estimate in terms of where we will be with revenue. But understand that we will not

044know our revenue until the state finalizes their budget and then and also until we finalize our pupil count. Now, you know, our pupil count happens in October. And so it takes the the state of Michigan the Michigan Department of Treasury up until about December to really actualize and uh these amounts, you know. So, and that's the reason why districts usually do an amendment in January or February because we have to set our budget based on what the state has allocated us. But this is my best guess at 73.6 million and I want to tell you some more about it. So, I'm going to advance past the slide, but I estimated our expenses to be at $82.9 million. And I'll tell you why. uh excess revenue slashexpense or creating an operating loss of about $9.6 million

045and a fund balance of about 23.4 million. Now that $9.6 million, it's a operating deficit. What does that mean? A operating deficit means that we are spending more than we are taking in revenue at this particular point in time. But understand that this budget will be amended once the district knows what the state has allocated to it. Okay? We won't know that until our accounts are final with the state and also we won't know until the Michigan Department, you know, the state budget is final. Okay? and that happened sometime in um December. So, we have a $9.6 million operating deficit. And I'll tell you some major reasons why that is. So, I'mma flip past this. I'll go come back to it. This is grant funds. Grant funds, I'll just make this statement. for the original

046budget grant funds have gone down from 40 million to 25 million. Why? Because we're losing the SR3 grant and that's $14.5 million alone. That's a major grant that supported for the district for this district it supported salaries and benefits only. And I want to say that because that funding source ends and really it because that funding source ends that $14.5 million worth of staff has to go where has to hit now our general fund because we have to pay for the salaries and benefits of those people. Okay. So that's why you see the big dip, you know, of grant funding going down to $25 million. We lost a we lost a a major grant and hopefully the state of Michigan will make it up for districts. So let's look at it. My revenue assumptions, local

047revenue, which is basically the taxes, makes up about 19% of the budget. The state revenue which is our categoricals and from our foundation allowance makes up 70 76% of the budget or $55.9 million. Federal sources is only at $10,000. Other local uh revenue from the ISD it's at $3.8 $8 million or it makes up 5% of our budget of our total $73.6 million budget. And for visual learners, this is how our revenue looks from a a PI standpoint. You know, the 76% coming in from state revenue. This is how, you know, the largest funding source for districts. That's why it's so important for us to rightsize the budget after we get this information from the state. But our budgets are due before the state budget is due. And so we have to use our best

048estimate. And and one wonderful thing that the state does, they come out with a um a estimated amount from the the House and the Senate and also from the governor. and I used the governor's estimate to uh make up our our budget and I'll talk to you about that a little later. So, I'm going to be so local s sources the majority of the district's local revenue sources are from operating and tax debt taxes and I talked to you about that earlier when I went over the L4 29 from the city of Taylor Brownstown. Dearborn Heights, Inkingster, and Westland. You know, the district gets a little tax revenue from all these different cities based on, you know, how things are zoned. Per the district's current L4029, the current operating levy, like I mentioned earlier, is

04917.7660. The current debt levy is 3.64, and there is a commercial levy in the amount of six mills. For fiscal year 25, the current operating levy on the L4029 is 17.7588, which I mentioned to you before. The debt levy will be 850. So that went down because we don't have the debt payments that we had this year. Our debt payments go down next year. In terms of state revenue, the district's current foundation allowance is $9,68 per student. For fiscal year 2025, the projected foundation allowance is $9,849 of per pupil increase of $241 per Governor Whitner Whitmer executive budget recommendation stated earlier this year. Now, that's changing every day. The state is not finished figuring out what they're going to give to districts. And I know they said some things recently, but we'll wait and see.

050You know, they're still speculating what they will give districts. So, as soon as we know, the district will do a budget amendment to adjust our budget to those figures. The district's current blended student account is 5,527.69. The district is currently being um funded from a blended a blended student count of 5,527.69 for you know the current year and the blended student count was 543183 for fiscal year 25. The district has projected a loss of a 100 students. And I know that we have all these construction things going on, but the superintendent has made a decision to base our budget on a 100 student loss and a blended count of 5130.83. Like I said before, once we know what we're going to exactly receive from the state, this can be amended. Okay. Miss Hill, real quick,

051that number down below shows 5,130 >> 5130. >> Yes, that's what I projected the budget to be, >> but our current counts 5,500. >> I'm sorry. Uh, last year's blended student count was 5431.83. >> I'm talking about the line, right? So, we should be 5330. You know what the budget was based on 5130.83 >> 5130.83 as a blended count. >> So a loss of 400 >> one moment please. Let me just check something real quick. I have my cops with me. Yes. The district is currently being paid for 5528. >> Yes. >> For our student count current to date is 5,528 students. >> Yes. >> So it's a little more. I base my budget on a blended count of 5130. That's as a blended count. So that's a little bit more than 100 students. You

052all are correct. >> It's almost four. >> Yes. And we will adjust that, like I said, when we know exactly what it is. I have my comp that I did right here. Thank you. In terms of expenditure assumptions, expenditure assumptions include our projected costs needed to implement district programming for the 2425 school year as follows. Please note the district will amend its budget after the state budget and pupil counts have been actualized. Construction cost has been added to this budget in amount of 2.8 8 million for construction activities. Estimated raises for all four bargaining units, unit contracts. This amount will be adjusted as needed during the next budget amendment based on what the board decides. Employee steps for the upcoming year has been included. health care cost is currently being um bidded out by the

053district, but um our current provider has quoted us a increase of 4%. So, we'll see how that works out and we'll finalize this number as well. cost of employee salary and benefits that will have to be funded by the general fund due to the SR3 grant ending in the amount of $4.5 million. 9.8 million will be absorbed in the basic programs category because they are teachers. The difference between the 9.8 million and the 14.5 million will be absorbed in other functional categories. you know what does that mean? Other categories like operations and maintenance, you know, um pupil support, those are other functional categories um that were funded by the SR3 grant. In terms of debt funds, the total revenue is going down to 2.5 million from 7.7 million due to a a lesser levy. For

054fiscal year 25, the amount of debt that we will have to pay on those bonds will only be $2.9 million, down from 8 million in this current year. Projected fund balance for the debt fund is only $986 and that is unaudited. In terms of capital projects, the original budget is only starting out at $1.4 million. When we sell more bonds, you will see the amendment show whatever that amount is. when we uh the district is projected to sell more bonds in the upcoming year of that $130 million that it was awarded and whatever amount we do sell, you'll see this increase in revenue in your budget amendment. Total expenses are at $17.5 million. That allows us to operate until we sell more bonds. um with a fund balance estimated to be 16.1 million. But then

055that all depends on our operations for the upcoming year when we sell more bonds and the whole nine. But this is our best estimate at this meeting and when these financials were prepared. Terms of food service, the revenue is estimated to be at $3.7 million with expenses uh being the same. 3.7 million, no fund balance. Center programs revenue is at $6.7 million for the original budget. Total expenses is at the same and this fund should also zero out. This money comes from Wayne Resa. Thank you for your time and attention. I can answer more questions. >> So I have a very long list of questions. So um the first question I have is the projected operating deficit has increased from 4.8 8 million in January to the 9 was 9.68 I just uh can you

056provide the detailed breakdown of the factors that contributed to the significant increase in just six months? >> Yes. and composing this question with our wonderful superintendent and cabinet. This is our response. Per the fiscal year 25 projected original budget, the estimated operating deficit has increased from 4.8 8 million per the five-year plan that we worked on earlier this year to an estimated $9 million per the projected fiscal year 25 original budget. This projected increase has been impacted by the following factors. Construction costs in amount of $2.8 million that was not uh finalized at that time contributed to the deficit. estimated increases for the four CBA contracts, TFT, TPA, 26M, and taxa over the 2% that was set aside in the five-year plan has also contributed to the deficit. In our 5-year plan that was created

057earlier this year, we only set aside raises at an amount of 2%. Uh I don't think in terms of contracts you know when whenever that is finalized and the percentages are finalized we will adjust the budget but those amounts have been set aside in the budget. Also, what has impacted the budget is the fact that we are moving 4.5 14.5 million from grant funding to the general fund because the grant has ended. This is a major grant and this also has contributed to the deficit. salaries and benefits of staff incorrectly coded to 31A and title one grants per the Michigan Department of Ed that were moved to the general fund also contributed to this deficit because when we did the five-year plan I earlier this year we didn't know at the time that these people

058were coded incorrectly and then it's a result of the audit we were made to move these people out of these grant funds and back into the general fund. We discovered earlier this year uh the same about the SR3 funding. We discovered that all of it was used for salaries and benefits to the tune of $14.8 million. When that funding source ends, those people have to go somewhere. They have to be absorbed by the general fund. >> So, a follow-up question to that. Um, you brought up about the construction cost being $2.8 million. The board approved that on May 8th, 2024. So, between May 8th and when you started creating the budget, was there a breakdown of communication that the board did approve that and that's why it wasn't factored in the original? The board approved

059that in May, but but those other budgets were done before May and and that wasn't final until May, like you said. And so it's $2.8 million this year, but in the in the following years, it's going to be more because the board made a decision to actually pull out a total of $10 million over several years. >> And under the assumption that was the 4.8 8 million the grant funds the 14 million ESR funds was already assumed in that correct? >> Yes, it was already in there >> under the 4.8 million assumption too. We did assume that it would be a 2% increase for the uh bargaining units. Correct. >> Only a 2%. So anything over that 2% will create a budget deviation >> which increase the deficit. >> That is correct. Um my second

060question is what specific expenses other than the salaries that were being covered by esser dollars has escalated beyond initial projection and why were these not anticipated in the January budget that was presented to us? Okay. Decisions to charge construction costs and salaries that were incorrectly coded to 31A and title one funds were identified to be moved to the general fund after the budget amendment. estimated amounts over the 2% budgeted for the CBA contracts and the five-year plan also came after the fiveyear plan was created. >> Um, what concrete concrete steps have been taken since January to address the growing deficit? Why haven't these results uh resulted in a reduction in the deficit? Okay. So basically that's question three. >> It's question two. >> Oh sorry. Okay. As a cabinet these are the programming things you

061know that we have instituted. ex executing utilization plans, you know, meaning that we are rightsizing the classrooms and making it efficient for not only learning but also a budgeting standpoint, cutting back staffing through attrition 15 positions, teachers at top pay scale retiring. So, the district has um had 30 people that said that they were going to retire or that are slated to retire and the district has made a decision uh that we will not hire back 15 positions. And I just remember off the top of my head that that's about a $2.3 million savings. >> Was all $2.3 million saved and put back? The $2.3 million was uh set aside to help pay for TFT salary increases. Return on investment studies on educational technology to reduce cost to the general fund budget. Now, what that

062means is, you know, the district uses a lot of technology in the classroom and we just want to make sure, you know, uh what our wonderful team over here has been doing is make sure making sure that it makes sense and that we're actually using the technologies that we're paying for, thus cutting costs. The axillary ancillary general fund budgets were cut across district. One wonderful thing that happened this year was um schools and departments had input into their budget. Cabinet came up with the amounts and the schools were able to allocate these different amounts into their supplies and purchase services other you know and their mileage and their workshops and conferences. So that this this money and this funding is where they needed to be in order to support their program and their buildings. But

063in us doing that, we also cut the budget, you know, so we're actually spending less than we spent in the previous year or the current year in those areas. The communications and marketing position was cut and has not been replaced. Legal costs has have decreased for the district. Maintenance leases on trucks has decreased as a result of in incentives. You know, I know Jack was able to uh get the district a wonderful deal where we don't have to pay for the leases on our cars for a couple of years to the tune of over $200,000 there. The reduction of overtime by using a time management tool frontline. So, we are going to start using a a frontline tool, time management tool that's going to help the district more accurately track its hourly employees. And we

064have about 430 hourly employees. And right now, their time is tracked on pen and paper. and and you know most districts don't track that level of employee and that number of employees by pen and paper or pencil and paper. So that is we expect that to bring the district a large savings in terms of overtime pay >> that that's official. >> Yes just a little bit >> mine. Yeah. >> Okay. Yeah. As the district is implementing the above above plans to decrease spending, construction cost to the general fund has increased. We talked about that. And we're also using attrition. And what does that mean? It means that when somebody leaves the district, the cabinet is looking at this very closely to make sure that it makes sense for us to rehire someone else in that

065role or or can we forego that role. you know, we're not going to um uh jeopardize programming to the buildings or anything like that, but we just have to make sure that it makes sense, that position is needed, and there's no one else in the district to fill it. Also, keeping and um you know, watching our class sizes, you know, whatever has been agreed to with you know, the TFT union, you know, we're adhering to that. Are is the district looking to go to max class sizes? >> I didn't hear that. >> And then you brought up about how legal costs have decreased for the district. Was that evaluated between last year and this year's legal costs? >> Yes. >> So far, we're down $100,000, but we're, you know, uh we haven't gotten all our

066bills yet. We're still paying bills, but right now we're down $100,000 in legal costs. Um and then question five is have we explored all possible cost cutting measures to mitigate this deficit? Can you provide a list of potential areas for cost reduction beyond what you've stated um and the expected savings from each of when those costs will be cost savings will be implemented. >> Okay. So in addition, you know what cabinet said to then answer in addition to the above measures that I mentioned before, we are going to closely monitor our class levels and look at the programming there possible layoffs, but I know the district, you know, you want attrition. Um, we are approving a new hiring process that is going to strengthen our internal control in that area. >> Can I ask how

067how is the hiring process going to save us money? H >> how is strengthening the hiring process saving us money? >> When you strengthen the hiring process, you it also encap encapsulates these things that we mentioned. When you strengthen the hiring process, you know, it originates at the building. You know, the principal says, "Hey, I need a position. I need a teacher." And then strengthening it. It means that you know cabinet will make the decision now as to whether you know it's part of the plan you know along with the principal of course but we're going to look at those things more closely and you know I don't think that that was looked at as closely as possible because we had class sizes that were really low you know some class sizes that were lower

068than you know contractual and we want to be below the contract ractual button. I'm talking about like 13 kids in the class. So, you know, when when you strengthen that, it's going to be more efficient, but we also want to be very careful with the programming, you know, just making the whole process more efficient. >> So, is that just to reiterate the point before too, the district's administration is looking at possible layoffs? I'm not saying that we said that the board supports attrition. >> Okay. Listed here. It just says possible layoffs as a measure. >> Yes. You know, um what I'll say about that is I I know one of the other questions said, "What are other districts doing?" They lay off, but this board supports attrition and so we support what the board supports.

069>> I just seems like contradictory. Seems like the board said that, but then the district administration is putting layoffs on the table. So, >> you know, I can't speak to that at at this particular meeting. You know, like I said, you know, we as a cabinet, we sat down and we went through these questions. Layoffs is a very sensitive topic, you know, but the board supports attrition and so we support attrition until something changes. But that savings through attrition won't happen this fiscal year because that money was allocated towards contracts. Correct. >> Attrition won't h happen this fiscal year because we're still right sizing. >> Well, I'm saying the savings that we saw with the 30 retirees, >> you know, this they haven't retired yet. They don't retire until June 30. So, you won't see

070it until next year. >> Yeah. But we're not seeing that savings because you just stated earlier that that savings was going towards contracts, correct? >> Next year and and the people haven't retired yet. So, we got to have them retire first before we see the attrition. >> So, the attrition money for this next budget year was used for contracts. So, we won't see SE savings from attrition this next budget year. we'll see it the 2526 budget year >> for those 15 people. Now, there will be other people that come and go from the district and then we'll continue to rightsize the district and we'll see cost savings from that. But that's just those 15 people, you know, how we we decided to pay for the TFT contract. That's just 15 people. People have been coming

071and going. And like I said, this cabinet, you know, we are dedicated to really look closely at the programming at the building level to ensure that we really need that position that is is it required or um you know where it fits in the grand scheme of how we want to support our students. >> Well, I know you brought up this question. It's question number eight. Have we studied how other school districts with similar financial challenges have successfully reduced their deficits? What lessons can we apply within our school district within this next fiscal year um from those cases? And our cabinet said, you know, other school districts, you know, close buildings, and I know this district is closing a building, but the building hasn't closed yet. So, it won't close until this upcoming year. So,

072we won't see any savings until it actually happens. But other districts, they close buildings, they lay employees off, and they cut programs. >> Well, we won't see savings from building closures for probably three years. Correct. >> Okay. Okay. >> Because no buildings have closed. No, >> I mean, Eureka Heights has, but the building's still open and we're still paying utilities and all that. >> Okay. >> Correct. And then the following year, Randall and Taylor Parks when they close, those buildings aren't going to be demolished on day one. It's going to take time. >> Yes. >> So, we'll still see those expenses from those buildings. >> Yes. >> Um, question number nine is, what accountability measures are in place to ensure the budget projections are accurate and that any deviations are promptly addressed? And what I

073wanted this um wanted to say, you know what I've said through my throughout my presentation as budget deviations are normal business in a school district. It is the result of program changes, additions, emergencies, repairs, etc. Deviations are addressed during the amendment process to ensure school districts stay within appropriations. And I wanted to uh say also, you know, just strengthening our PO process also so that we don't have invoices that are created outside of our system helps with the deviations as well. But as a school district, you know, school districts have to be able to change programming. They have to be able to, you know, when anybody comes to the board and say says,"I need this and I need that," you know, and the board wants to support it, that's a deviation. >> So, I know

074you said that the you use that school districts use amended budgets to address deviations, but you said that on a normal cadence, school district will not do an amended budget until January. So we are supposed to operate as a district six months without amending a budget even though deviations could occur. >> You know um the state the the state budget you know first of all the state budget isn't finalized along with our student counts until about December. And that's the reason why it usually happens in January because if you amend a budget before you get these final counts, you're just going to have to amend it again because your counts from the state are not final. >> So amendments to budgets really aren't an option for a board because it only you can only amend

075it in January and then you can only amend it in June. You can amend a budget whenever you want to, but what I'm saying is if you don't have the proper information, you're going to have to do it again because your information is not final from the state. You can amend a budget in September, but you're going to have to amend it again because first of all, the state budget is not final. So you just really, you know, that's why we don't, we have to wait for the information from the state and our accounts to come in and for them to put that into their budget and the allocations to the district. And and usually by the time they do that, it's in January. By January, December, January is that timeline. You can do a

076budget in October, but you're gonna have to do another one, you know, when these this information is finalized at the state level. >> Um, question number 10 is, how often will the board receive updates on the financial status and progress towards towards reducing the deficit? What specific metrics will be used to track the progress of reducing? >> Okay. And cabinet and I came up with the the following answer. updates will be through the normal channels. Friday updates, you know, we send the board a update Fridays. You receive check registers in terms of our spending. Uh we bring personnel changes to the board. So, uh the board is aware of everybody that we hire and and status changes and employees before the board of education as well as expenses at or above the bid threshold are

077expended. We also bring that information to the board and through the budget amendment process and then also there's a little financial comp sheet that the board gets as well. So, we're just going to have to like look for it, >> correct? Like I mean I know you're going to send us check registers. I mean, as a board member, that's sometimes hundreds of pages to be looking at. And then also through Friday updates if it's done through the superintendent. So, I mean, there's not going to be a set standard of this is how we're going to be making sure the board is updated during board meetings in public. It's going to be we're getting sent this information through our email. We're getting sent this through conversation. >> You know what? I'm going to go back to

078cabinet and see what's feasible and and see whether it's the pleasure or okay with the board. >> And then kind of relating to that, I'm going to skip to question 15. Is how are we communicating with stakeholders, teachers, parents, community members about the budget deficit and the steps being taken to address it? How are their concerns being incorporated into our planning? Mhm. from cabinet. We will continue to put out communications, have meetings and post on the website and social media information to inform stakeholders. Like I said, this is a work in progress for us. You know, um a situation inherited and we will work with the board superintendent to come up with answers for that. So other than the communication put out in December, can you illustrate what other communications have been given to the

079staff community about the deficit? We haven't sent anything out that I'm aware of since that that big town hall, you know, situation. uh we were waiting for, you know, operations to continue and to really see where we are, you know, because you have a new administrative team and we're walking into all this. So, it takes time for us to assess where the district is. >> I just think that we need to do better. I think we have not been communicating to the public about what's been happening with our deficit. I think it's kind of been just a topic sitting out there and it says in the answer, we'll continue to put out communications, have meetings and post on the website and social media. I don't know what continuing means. I think we need to start

080doing that, not continue. >> Okay. >> Um, going back to question number 11, how will the current deficit impact educational programs and student services? Are there any programs at risk of being cut or scaled back due to the deficit? >> And the cabinet's answer, we are being very mindful and keeping the impact away from students, student programs and staff. And like I said, in the event, you know, I agree with with you. We need to strengthen that whole process, see what's acceptable to the board as a cabinet, and then, you know, really track what this looks like. Um question 12. How will the current deficit impact district staffing? Our during our board presentation and staff presentation in January and December, we con committed to the district to not laying off staff but through attrition to

081rightsize the district. Me as a board member, I'm still committed to that promise. Um, are we as a district still committed to holding that promise to the school district personnel of not using layoffs as a mechanism of right sizing the district's deficit? Answer from cabinet. Attrition is the number one factor and it should get us there. If it doesn't, layoffs will need to be put on the table. >> So layoffs are on the table if >> I didn't say are on the table. has said, cabinet said we'll need to be put on the table, but cabinet also said that attrition should get us there because everyone, you know, the principles, we're all committed to looking at this, you know, our programs and the buildings and just really being mindful of anybody that we do add,

082you know, and just having that number right, you know, and then when people leave, you know, just making a a really um team effort to understand whether that position is needed or, you know, can a class be comi com combined, you know, and all those other things that school districts use as tools. We believe that we can get there through attrition with we're being very careful. >> Um, question 13 is with the status of our fund balance, are we utilizing it appropriately to manage the deficit? How does the usage impact our future financial stability as a district? because I think we saw that between this current fiscal year and next current fis or next fiscal year there's a drop of 9.6 million. >> Yes. So cabinet's answer currently our fund balance is higher than the

083state recommends and of fiscal year 2324 it's at about 41%. For 2425, the fund balance is projected to be at 32%. Yes, we take a hit on the fund balance, but we can ab absorb it in short term and we'll continue to monitor the fund balance in the long term. >> Do we know how long that fund balance will last given the current operations? you know, um, we came up with this is where we are today. Um, it is not wise to try to, you know, say we did a five-year plan and and anything over and above the five-year plan, that's what it'll be. >> But within that five years, our district's fund balance dries up. Correct. we were within that five-year plan. I think we got down to like um now that the the

084um board made a decision to pull out that $10 million, that leaves us about $2 million, I believe, was one of the scenarios looking at that $10 million coming out of there. So, we do lose our fund balance completely within the next five years, which technically at this point it's four years because when we looked at that five-year projection, we weren't talking about this next we're adding this next fiscal year, but now we're talking about it. So, really four years out, >> right? >> So, in four years, our fund balance is gone. >> You know what? Um I really believe in the attrition that we talked about. You know to say that we won't have a fund balance in five years. You know we don't you know that's saying that we know you know exactly

085what our count will be and exactly what the state will give districts and things of that nature. But from that fiveyear projection we went down to $2 million. Um, question 16 is, how long do you anticipate the district's fund balance? Will just answered that one. Uh, question 17, was the budget developed based on our current financial realities and standard expected increases from the state or does it rely on uncertain and ungaranteed funding promises from state and federal sources? projections, you know, per our cabinet. And, you know, projections for the fiscical year 25 original budget are projected are based on a projected pupil allowance of $9,849. And that was uh Whitmer's suggestion uh earlier this year. It I hear it's changed now, so we'll see. >> I have an update. >> Okay. Okay. So um it

086is you know when districts do an original budget it is our best estimate you know we don't have the the state budget is not finalized the categoricals which are the other funding that that are allocated to districts is not finalized so it is our best estimate and that's what the budget is based on. Well, I know you guys and even in your presentation, you estimated that the state would increase per pupil funding by $241. Uh, email received today by Michael Latv. >> Yeah, that's >> it's not going to be that. >> Um, he's the basically Wayne Reese's lobbyist at the state level. uh emailed the school boards across Wayne County saying the state is proposing a zero dollar increase for per pupil funding. Um which means that we won't see any increase at the district

087level as well as 98% uh funding cut to school safety and mental health which I believe that we have a large sum of money that is out of those grant funds. Um, and then they also are defunding and reducing other categoricals such as 20F. Um, and then also saying that there's going to be a 75 a $57 million one-time payment to charter schools across the state. Um, they also proposed that the Mipsters cut at 5.8% was only a one-year cut and then the following year it would re increase. Given those factors, to me, that doesn't put this district in a very good place in the long term because I know in the budget you were projecting a $241 increase per student. That is a $0 increase. Can you tell me what the effects will be?

088>> I don't It's going to be less money, >> which increases our deficit, correct? >> Yes. So, >> our deficit will actually go above that 9.6. Yes, technically all things, you know, held, you know. Yeah. If I if I said thought that projected that we were going to get an increase of 241 and we're going to get nothing. Yeah. But we will really know when that state budget is finished. >> That's all just being proposed. So, nothing's been solidified. But just the fact that those are the discussions happening in Lancing and there's been a call out, it's concerning that we're budgeting on that increase and evaluating contracts and construction cost and everything based off those numbers yet that could easily turn up. So there's just a lot of uncertainty. >> Yes. Um, and then the

089last question 18. Uh, here historic here is historical data on the Taylor School District pupil enrollment at periods of time when the district's buildings were closed when Fiser Elementary was closed in 2011. And all this data was pulled from the state of Michigan's pupil enrollment uh database. Um, I looked at the K5 enrollment between the year that it closed and the following school year, and there was a loss of 116 students. Uh, the closure of Kennedy from 9th to 12th grade enrollment, there was a loss of 220 students between the two school year or between the year it closed and the year after. Uh, the closure of Rackco and Wearing in 2007, there was a loss of 474 students. Uh the closure of Johnson Elementary in 2009, a loss of 303 students in the district.

090Closure of Threadwell Elementary in 2006, a loss of 296 students. And then the closure of Federal Elementary in 2005, a loss of 288 students. Given the historic trends around people enrollment during district building closures and transitions and given that Eureka Heights Elementary closed at the end of this fiscal year and we are closing two more elementary buildings in one middle school building during the upcoming fiscal year. What enrollment loss factor was taken into consideration when creating the budget which you said 100 kids. Um and then what data was used to identify the enrollment loss number? Is there a plan to achieve no less than the expected enrollment loss to maintain budget projections due to a due to building consolidations? 100 student loss has been projected. The district will file a budget amendment after student counts

091have been finalized. So yes, we're looking at the historical data which is extremely valid. Well, the historical data shows a significant decrease more than 100 students that the district is >> expecting to see. Is there a reason why 100 was chosen? That's what our superintendent uh chose because we wanted to be conservative in terms of our loss. These counts and everything is valid. But then also this year, you know, we our student count increased even though we had years of decreases in our student count. So what we will do to remedy that, we will do a budget amendment when we see this final fallout of students. And if that student number is much higher, does that also impact the deficit? >> It will impact the deficit. >> Those are all my questions. I just I

092am very concerned to see $9.6 million deficit and I really really hope that this district puts together a plan, shares it with the community of how we are going to mitigate that because the plan was originally in January to see a $4.8 million deficit. I know there's been, you know, aspects that have contributed to that. Um, but looking at that deficit from January to today, double, actually more than double, um, is extremely concerning. And so I hope that at some point the administration puts out a plan out to the community and to the board what they're doing within the next four years because we said four years our fund balance gets depleted. um to actually stop the deficit and to stop our district from falling into an actual actual deficit because right now it's an

093operating deficit. So >> thank you very much. >> Are there any other questions comments? I do have one and I don't think Yina you can answer this so I'm directing this to Jason. Um since it's the whole cabinet that it participates in the budget, it was um okay, they've talked about this before. Uh if things can't be done through attrition, then they cut programs, but they also cut classes. What kind of classes are 13 students or less? Those were some of our specialist courses. Now, obviously, our core classes and those are the conversations I've actually had with Mrs. Scinsky and her team of when we're looking at the master schedule this year where we've had those drops in those classes that we're specifically at those low numbers to make sure that we are one it's

094not going to happen again this year especially when it was brought to my attention and I was like how is that happening? So when we worked on the master schedule, we built off of what student course selection guides were going off of and what they submitted, knowing that that we had classes that were at that level that was either the course is going to be dropped or we have to have that teacher teach enough class to make sure that enrollment numbers are where they need to be for those classes. >> Okay. They're not classes that uh are on the upper like it's it's not uh >> honors classes. >> Yes, honors classes. No, not to my knowledge. It was not the honors classes that were brought to my attention that had those low numbers. It

095was the other it was other classes. >> I think a couple of them were in the past. >> Well, again, >> honors classes >> and we can't do that, >> right? >> We just we can't comment as well. Sometimes it's the specific hour of the course and it's just a a situation where you just have to be a better strategist with putting the courses into the classes. So or putting the courses into the hours. So like Jason referred to earlier, band or choir might only be offered during a certain time. If those classes are full, then you might not you might need to jot your own schedule and you can still offer the same class but just at a different hour to accommodate that >> okay because we can't get back to a balanced budget

096on the backs of the kids. >> Another thing I'd like to mention from the elementary is we have we had very low enrollment in our transitional kindergarten our young program and my firm belief is that the public does not understand the fantastic asset that this is for our community. My own daughter attended a young fives and the research is out there that students that are eligible for that young fives class which is the birthday. We target the birthdays between June 1 and December one. So that students that would potentially be starting kindergarten at four years old, which may not be developmentally or emotionally mature enough for kindergarten that they're put into a transitional kindergarten or a young five class um where they can get kind of an extra dose of pre kindergarten. We're adding a

097section of that over at Fiders and we've got campaigns in the works for this summer to get um that out into the community so they know what a fantastic program that this is. It's not double kindergarten. It's like an extra scoop and it can be really really beneficial for students that are chronologically young before they start. >> What is the threshold of students to make that a viable program? >> It would ideally you want 16 to 18 kids in that class. >> And if there's below that, does the district have a plan? >> Yes, I'm I'm actively recruiting people. I'm going to be working with the principles to call people um to invite them to this program. We can very easily pull enrollments for kindergarten for birthdays and I can reach out to them and

098let them know that we have this this uh uh plan available for identified students. My plan would be to add several sites with the board's blessing all across the district. It's run very successfully in many districts um that we've been talking to about the ways that they promote this program. We've been talking about enrollment fairs um even uh I've been coordinating with the Taylor Public Library that we may utilize their campus to have an enrollment fair reach out to the communities. We've been talking about enrollment fairs in the various complexes and subdivisions where we have high rates of students everything to get as many students as possible to enroll. >> How many students? So is the 16 to 18 students the threshold to make that class actually profit for the school district rather than loss

099of funds for the school district because with that we also have to pay and correct me if I'm wrong you have to have a teacher in there but then also because it's young fives you also have to have additional monitors and all of that correct >> no not necessarily they can have a teacher and if you had three teachers at a site you would just say one of those teachers is a young five teacher and so they would just you would shift and make sure that the students that met the need for that class that they were in there. So you first start with the chronological age and then you start with developmental needs. So looking at things like does the child separate easily from their caregiver? Are they independent? Are they able to make

100it through an entire school day? because there are supports that are built in to Young Fives programs that help those with students who may need just that extra bit of time to ensure to get ready for the rigors in kindergarten. >> But do does 16 to 18 kids suffice financially the district to operate that classroom? >> Yes. >> Yeah. >> Okay. Are there any other questions or discussion hearing? None. The budget hearing is going to close at 7:45. >> I think it's Yep. Action items. >> Moving on to item number six, action items. First up, we have the overnight conference request 2024 Michigan CTE Summer Leadership Conference policy 6550. It is recommended the board of education approved the overnight conference request for Carly Bernard to attend the 2024 Michigan CTE Summer Leadership Conference in Boone

101Falls, Michigan, August 4th through 2024 through August 6, 2024. Funding for the conference will be paid out of title two. Is there a motion? >> Motion by Mr. Heath. Is there support? >> Support by Mr. Thomas. Mr. Wright is a yes. Miss Block. >> Yes. >> Mr. He? >> Yes. >> Mr. Myers is absent. Mr. Thomas. >> Yes. >> Mrs. Thomas. >> Yes. >> M. >> She belt is absent. That carries. 50-0. Item number two, overnight conference request 2024 MASB Summer Institute policy 6550. It is recommended the board of education approve the overnight conference request for Anne Block to attend the 2024 MASB summer institute in Gaylord, Michigan, August 16th through the 18th, 2024. Funding for the conference will be paid out of the general fund. Is there a motion? >> Motion by Mr. Heath.

102Is there support? >> Support by Mr. Thomas. Miss Block. >> John, can I vote on this? here. >> Yeah, I'm recused. >> Okay, I'm recused. >> Mr. Heath, >> yes. >> Mr. Myers is absent. Mr. Thomas, >> yes. >> Mrs. Thomas, >> yes. >> M. >> Sheel's absent. Mr. Wrights, yes. Five, that carries four to zero. Number three, Taylor High School certificate of completion requirements. It is recommended the board of education approve the Taylor High School certificate of completion requirements as discussed. Is there a motion? >> Motion by Mr. Heath. Is there support? Is there support? All right. With no support, the motion fails. Moving on to item number four, 2024 tax rate request L429. It is recommended the board of education approve the 2024 tax rate request from form L429. Is there a motion?

103>> Motion motion by Mr. Heath. Is there support? >> Support by Mr. Thomas. Mr. Myers is absent. Mr. Thomas, >> yes. >> Mrs. Thomas, >> yes. >> Sheel's absent. Mr. Wright says yes. Miss Block. >> Yes. >> Mr. Heath is Oh, Mr. >> Yep. >> You're right. >> All right. That carries five to zero. >> Item number five, 2023 2024 amended budget policy 6850. Be it further resolved that no board of education member or employee of the tail of the school district shall expend any funds or obligate the expenditure of any funds except pursuant to appropriations made by the board of education and in keeping with the budgetary policy of the board. Changes in the amount appropriated by the board shall be required approval of the board and be it further resolved that the superintendent

104is hereby charged with the general supervision of the execution of the budgets adopted by the board and shall hold the department heads responsible for performance of their responsibilities within the amounts appropriated by the board of education and in keeping with budgetary policy of the board. This appropriation resolution is to take effect on June 26, 2024. Is there a motion? >> Motion by Mr. Heath. Is there support? >> Support by Mr. Thomas. Mr. Thomas? >> Yes. >> Mrs. Thomas? >> Yes. >> She felt absent. Mr. Yes. ML. >> Yes. >> Mr. Heath. >> Yes. >> Mr. Myers is absent. That carries. 5. Item number six, 2024 2025 proposed budget policy 6850. Be it further resolved that no board of education member or employee of the school district shall expend any funds or obligate the expenditure of

105any funds except pursuant to appropriations made by the board of education in keeping with budgetary policy of the board. Changes in the amount appropriated by the board shall require approval of the board. And be it further resolved that the superintendent is hereby charged with the general supervision of the execution of the budgets adopted by the board and shall hold the department heads responsible for for performance of their responsibilities within the amounts appropriated by the board of education and in keeping with the budgetary policy of the board. This appropriation resolution is to take effect on July 1st, 2024. Is there a motion? >> Motion by Mr. Heath. Is there support? >> Support by Mr. Thomas. Mrs. Thomas. >> Yes. >> She felt absent. Mr. Wright is a no. Miss block. >> No. >> Mr. Heath. >>

106Yes. >> Mr. Myers is absent. Mr. Thomas. >> Yes. >> Fails. The motion fails. >> All right. Our next item on the agenda is district business item scheduled for next agenda, Wednesday, July 17th. Uh we have good news. Our next item on the agenda is public comment pursuant to policy 167.3. I must read this. Thank you for all who are able to be here in person and online tonight. We understand the importance of keeping continuing to keep you all informed and provide an opportunity for you to be heard. Tonight's audience participation will be for all who wish to speak whether it be in person or online. We will begin with those in person. If you would like to address the board, please step up to the microphone and state your name and address for the

107record. After all those in person have had the opportunity to speak, that opportunity will be given to those online. Please take into consideration common courtesy and keep your comments at three minutes or less. We will provide and assist with timekeeping so that each speaker will be able to monitor their own time and know when to conclude. So all who wish to speak will have an equal opportunity to do so. If there are any questions at this meeting or by some other avenue, Superintendent Michael Wagger or his designate will work on getting those answers in a timely manner. We start with those in person. Kathy Fields, 22670 Wood Creek. Um I don't have any questions, just um observations and a couple of comments. This has been the oddest uh budget hearing I've ever attended in 35

108years. Um I didn't know it was a hearing. I thought it was a presentation. The information wasn't out for the public to gra to get a hold of prior to the meeting to generate their questions. Um then there wasn't an opportunity outside of my rudeness by speaking up for the audience to ask any budget questions. So, I guess I'm requesting that this board next year kind of follow Michigan law that tells you how it should be done because nobody was prepared to be able to question anything. Um, the other comment I had was when when we you're dealing with those issues with grant-f funded positions, I I always hear the board say if the grant goes away, will general fund have to pick it up and general they say yes and we end up hiring

109anyhow and picking them up. And yes, I know it was a previous administration that got us in the deep hole. I understand that. But should we have learned from that? Have a good night. >> Hi everyone. Um I'm Mike Brandt. I live over on 10700 Morton View. And a question I have might be kind of silly is that um the school that they uh um voted in on that has nothing to do with your budget money you're talking about here today. Does that make sense? The school the new school that they're building is it mean it's allocated for a different thing. It isn't included in this budget you guys are discussing today. >> We can get you the answer on that. We actually don't answer questions like right from >> Oh, okay. I'm sorry. >>

110As long as you see Shauna over there, she can collect that answer. All right. I'm sorry. Did I know? No, >> we write it down. You're good. Okay. Thank you. Do you wish to speak, Chad? >> Just want to know any questions about why the vote failed when it was a 3-2 vote. You want me to explain that? If not, okay, John Cava, 31440 Northwestern Highway, Farmington Hills, Michigan. uh also uh board legal counsel and just wanted to briefly explain uh the vote on the budget for the 24-25 school year uh was a vote of three yeses and two nos. Um and then there was a question of whether or not that motion passed and I it formed um the board president and board secretary that it indeed failed. The reason it failed is because

111pursuant to MCL 380.1201, which is section of the revised school code, it addresses that in order for a motion to indeed pass, you need a majority of the members elected to the board. Um, so a majority of those are elected. You have seven elected members. Therefore, you need four members to pass something. Um, so if there were only four of you here for a quorum, every vote would need to be 4-0. The only rare exception is if someone has to recuse themselves, then it's a majority of those who can actually vote on the on the motion. So just wanted to pro provide that clarification in case someone in the audience was saying it was 3-2. Why didn't it pass? So happy to answer any questions if there are any questions. All right. Thank you. Thank

112you. Are there any online? >> Good evening. This is Caroline Pat 6860 Jackson. Can you hear me? >> Yes. >> Okay. Um the gentleman prior to Mr. Cava um had asked a question and it was kind of like my question too because out in the public there are so many people out there saying they're not building the school. They're not building the school. Where's the money coming from? they're spending on other things and and I I get kind of tired of reading it. Um and I know you can't answer the questions, but one of my questions to you is when you do answer someone u for example, the gentleman who asked the question or me asking a question, how does the rest of the people hear the answer? Because it might be an answer, a

113question that I was going to ask, but now someone already asked it, but how do I get that answer too? um you know there's other people out there maybe just listening um that want to know the answer also. Is there a way that those questions and answers can be put on the website or someplace so that we can see the answer and so you don't have to contact every individual person? But there's got to be a way that we can hear the answer that you're giving to people when they ask questions. Um that's all I have. Thank you. Are there any others? >> Okay, Kyle. >> Moving on to item number nine, adjournment to close session policy 0137.2 2. Pursuant to Michigan's open meetings act being public act 267 of 1976 and as amended I

114move the board convene in close session pursuant to 8A evaluation of employee and 8C negotiations. Is there a motion? >> motion by Mr. Heath. Is there support? >> Support by Mr. Thomas. Miss Shufeld is absent. Mr. Wright is a yes. Miss Block >> yes. >> Mr. G. >> Yes. >> Mr. Myers is absent. Mr. Thomas. >> Yes. >> Mrs. Yes, >> that carries 5 to Z. We are going into close session at 759. Okay, we are back from close session at 9:34 p.m. Mr. Right. >> The action after close session. The first action is, is there a motion to approve the superintendent evaluation is highly effective? >> Motion by Mr. Thomas. Is there >> support by Mr. Mr. Yes. ML? >> Yes. >> Mr. Mr. >> Myers is absent. Mr. Thomas. >> Yes. Mrs. Thomas.

115>> Yes. She belts absent carries 5. >> Okay. I have some other action. As a result of the proposed state budget and no pure PU per pupil foundation allowance increase and the projected 9.6 6 million structured deficit that included a $241 per pupil increase. I move that Dr. Hill revise the proposed 2425 school year budget to not include any salary increases. Is there a second? >> Second by Mr. Thomas. Mr. Mr. Rightight. >> Yes. >> Miss Black is a yes. Mr. Heath. >> Yes. >> Mr. Myers is absent. Mr. Thomas. >> Yes. >> Mrs. Thomas. >> Yes. >> Mrs. Shufeld is absent. That passes. 50. Um. Okay. Um, Dr. Hill, would you please revise the uh budget? I motion that we recess for five minutes to give Dr. Hill time to amend the budget. >>

116Uh, any second? >> I second that. >> Second by Mr. Heath. Mr. Wright. >> Yes. >> Miss Black is a yes. Mr. Heath. >> Yes. >> Mr. Mr. Myers is absent. Mr. Thomas. >> Yes. >> Mrs. Thomas. >> Yes. >> Mrs. Shufeld is absent. That passes 5 Z. We will recess for the needed amount of time for Dr. Hill to amend the budget. Hopefully only a little bit. Oh, sorry. both of them died now. Okay, we go back into session at 9:50. So, Dr. Hill, would you please uh present? Yes. On the screen you see the fiscal year 25 budget which has been adjusted. The revenue is at $73.6 million for the original budget. For basic program it's 30 million500,000. For added needs it's 9 million. For instructional staff it's 6.1 million. For general administration

117it is 1.5 million. Business services 5.4 million. Operations and maintenance. I'm sorry. Nope, that wasn't the right one. Business services is 1.7 million. I'm sorry. Operations is 9.9 million. Transportation is 5.8 million. Support services is 2.7 million. Community activities is $1 million. Welfare activities of 10,000. I'm sorry. Community activities is 10,000. Welfare activities is five $5,219. total expenditures is $78,932 943. And then after total other financing sources which is a negative 352835 the new operating deficit is $5.6 million actually is 5,633,652. The new projected fund balance is now 27,432,235. Okay. Is there any discussion? Any comments? All right. Want to want to go through that again? You want to go through that again with the amendments? >> With the amendments that Dr. Hill presented, we are putting a motion on the floor for the 2024

1182025 proposed budget per policy 6850. Be it further resolved that no board of education member or employee of the school district shall expend any funds or obligate the expenditure of any funds except pursuant to appropriations made by the board of education in keeping with budgetary policy of the board. Changes in the amount appropriated by the board shall require approval of the board. And be it further resolved that the superintendent is hereby charged with general supervision of the execution of the budgets adopted by the board and shall hold the department heads responsible for performance of their responsibilities within the amounts appropriated by the board of education and in keeping and in keeping with budgetary policy of the board. This appropriation resolution is to take effect on July 1st, 2024. Is there >> With its amendments. Is

119there a motion? >> Motion by Mr. Thomas. Is there support? >> Support by Mr. He. Mr. He >> Mr. Thomas. >> Yes. >> Mrs. Thomas. >> Yes. >> Mr. Wright. Yes. Dave Myers is absent. Stephanie is absent in this. >> Yes, >> that passes. 5 Z. Okay, that ends action after close session. Um, board member comments. Anybody want to make any comments tonight? We are we don't have another board meeting until July 17th. Have a happy 4th everyone. Be safe. Um you can go beat up a car uh this weekend at the Taylor Festival and the money goes to the Taylor Foundation for Educational Excellence. So it's a dollar a clunk with a sledgehammer and um you get six uh hits for five. So, if you want to take out your aggression in a healthy

120way and help the district, bring some help help the foundation bring dollar uh scholarship dollars into the district. Go uh beat up on a car. Okay. Motion to adjurnn. >> Motion by Mr. Heath. Second. >> Second. Second by Mr. Thomas. Miss Black is a yes. Mr. Heath? >> Yes. >> Mr. Myers is not here. Mr. Thomas? >> Yes. >> Mrs. Thomas? >> Yes. >> Mrs. Shoefeld is not here. Mr. Wright, >> yes. >> That passes 50. The Board of Education special board meeting for June 26, 2024. We adjourned at 9:55 p.m. Good night, everyone. Good night.