001Home established. We stand for a moment of silence follow the flag of the United States of America and to the republic for which it stands. One nation indivisible and justice for all. Next we have candid general election and candes with >> okay >> you'll have one that will be early voting and one that will be election day >> so we're going to start with early voting first if you want to pull So I'm going to draw the numbers and you're just going to verify on those reports that correct. >> Okay. >> And those slits that you have there, you have one's for absentee voting which is by mail and for in person. >> Okay. So when you're maxing it all five, >> correct? >> 8. >> Correct. on speeding quietness two. >> Okay. Now this
002will be early voting in person which will be on the next report. >> Okay. Wendy Maxim 113 >> Steven 46 W 113 >> Ricky Hall 104 >> on the slip there you'll read the subtotal maximum 118 >> 153 is 48 >> Welch 115 >> 3% of all 108 >> and the next envelope for legend day. >> Winning 69. >> Correct. >> Graciu is 43. >> Correct. >> Telling 61 62. >> Correct. >> You'll have some turnouts that look like this. >> Yes. Total amount for Whitney Maxel is 187. >> Correct. >> 248. >> Correct. >> Steve is 91. >> Correct. >> Tony Walsh 176. >> Correct. >> 3% 170. >> Correct. >> And 12 votes that casted for our election. We had absentee 11 votes by mail. early 2415. I have a total of7. We
003did not cast any original ballots and all of the um voting by mail except >> All right. Next is to reach the clerk that is elected to a trustee position and issue certificate of election for each elected candidate. >> You will go ahead and present to each other. will be torn. >> And um tell You can come forward and take a picture. >> Yeah, I'm going to take your picture and then >> just like pictures. >> We take lots of pictures. Why do I have to be so >> tra I'm going to start with the statement of officer in the office and Mexico start ahead of the office who swear or a firm that I will not directly or indirectly paid, offer, promise to stay, retreated, or promise to contribute any money for things of
004value or promise any office or employment for the giving or holding of the vote of the election at which I was elected or as reward to secure my appointment or confirmation whichever the case may be. So, let me So you're going to repeat after me. I am a max wear. >> I am a mask. >> And I will faithfully execute the duties of the office of >> I will faithfully execute the office duties of the office of >> school board trustee >> of the state of Texas. >> I will to the best of my ability and testify, >> preserve, >> protect, >> and defend the Constitution and laws >> of the United States >> and of the state of the states. So, >> and of the states of God. >> All right. So, congratulations, sir.
005Y seat, please. Foreign speech. Foreign speech. I graci swear that I will faithfully execute the duties of the office of school board trustee of the state of Texas. and the best of my ability to preserve, protect >> and defend the constitution and laws of the United States of this state. >> So help me. Congratulations. Yes, there's one next to >> girls. I tell you swear affirm money or promise any public office or employment for the giving of the vote at the election. I was elected as a reward for confirmation. >> I am Tony Welsh. Do >> solemnly swear domly swear >> that I will faithfully execute the duties >> that I will faithfully execute the duties >> of the office of school board trustee >> the office trustee >> of the state of Texas >>
006state of Texas >> and will to the best of my ability >> preserve to the best of my ability >> preserve protect >> and defend the constitution and laws >> defend the constitution and laws >> of the United States of this state >> so help me Congratulations, sir. >> Oh, okay. Yeah. >> Yeah. >> So, next I have three of out. >> So, I'd like to take a few moments just to provide the city with a certificate of appreciation. And so the certificate of appreciation reads, "This certificate is presented to Genesis for dedicated service and leadership to the bracket ISD board of trustees and commitment to excellence in education for the youth of our communities May 2023 to May 2026. All right. >> Thank you so much, >> Emma. Thank you. >> Good luck. >>
007Yeah. >> Aren't you all? >> No. Monday. But it is an open workshop. So if you want to hang around >> get them set up. So we're just going to take a little five minute break and we'll make get them set up their emails already. Oh, so they go to recent impress. Okay. >> Yeah. Tell you good. Okay. So for our budget workshop tonight, um we have two items that we would that were there as attachments that we'll be going over with the board tonight. Uh the first one is the or it says workshop number one budget presentation and it is a PowerPoint presentation and it's the one that Miss back um goes over with the board members as a refresher of the budget process of the finance of how revenue is generated. Um, and
008so this is where we're going to start. And then once we finish with the what I call the educational part of it, the presentation is moreformational education, we'll get into some specifics, but we'll be presenting to the board tonight. And um, number one, where I'm at, the district goal of cutting budgets for function. So we were called in February to the new board members and February one of the goals that was set for me was to review each function code and look at dropping widgets um by 5 to 10% of their allotment from 25.6 26 2.7. So tonight I'll share with you kind of where I am with those reviews and then we'll go into um some models for compensation plan. Um I'll present three models um that this past and I have been working
009on. Um and then we'll open that up for discussion, see which direction the board wants to go. Um for tonight, I would say that the primary goal is number one, everybody has a background on school finance and how the budget comes comes to life. And then number two, we do have to have some direction from the board on the compensation plan. the compensation plan ends up being about 70% of a school district's budget. And so that's the first piece that the board approves so we can move forward with everything else. So, um, we do have it on Monday's agenda to approve the compensation plan. So, um, that's probably definitely one of the primary goals tonight is to be able to have a a solid foundation of where the board would like to go when it
010comes to the compensation plan for next year. So I'll hand it over to Amalia who will be going over the budget workshop presentation. So what we're going to discuss on 62 slides. It's a lot but it's basically in very general terms what a school district budget looks like and the funding for school district budget. The first page is acronyms and we printed that one page out for you so you can have that reference because through the slides we will be referring um or we will be using these acronyms. So why have a free public school system? It's constitutional. There's three principles that guide that um requirement. It has to be adequate. It it has to be um efficient and equitable. So based on these things, we move forward to establishing principles um who are the
011students at the school district that uh here at BISD, what needs do they have? Where do we educate them? How do we produce the programs? And then how do we measure that we accomplish that um goal? So we begin with the plan. We come up with a budget. The ideal plan for financial operations begins with the needs assessment. So again, what kind of students do we have? What instructional? >> Yes. So needs assessment. What kind of instructional needs does the campus need for the school district? What needs we have for facilities assessment, support services, and future projects? That's the ideal plan for a school district. Then we have to address fund balance policy. How much do we want to keep in fund balance? How much should we protect it? Do we designate some of that
012fund balance? And are we making sure that that fund balance includes the cash flow since we are a major tax commission funded type of school district. So once we establish those principles, we begin with the operating budget. That's what sets forth the financial plan for the year. To do that, we're going to set some tax rates. We've got to follow constitutional law. We have to stay within state law and then we have local policies. From there, we we build the plan with revenues and expenditures. All of them being estimates for most of the time and we will get into that discussion going forward. There are legal requirements under the education code for the budget. The superintendent defines the roles and then we establish a budget calendar that actually defines those roles. You've seen it a
013couple of times. Um, a budget needs to be prepared by June 19th by law adopted by the 30th. It has to be discussed publicly and it has to be adopted before the rate is set and it has to be prepared according to generally accepted principles. Um other things to to that are requirements in the development is that amendments is through throughout the year have to be reported in board minutes. That's why we bring those to you but only for the general fund the food service fund and if we had service it would be also for that and only function level and we'll talk about that a little further. Then we submit the data to TEA and they do lots of massing to our data to compare us to financial status here. Um so the basic
014formula for operations is revenues minus expenses due to your changes in fund balance and we'll piece all of this together or we'll break it down actually to make this formula um a little more detailed. And I'm sorry. I told that we were just going to be going through the slides, but please feel free to stop. So, if there's something on the slide that you want a little bit more elaboration on or you have a question um for returning board members, we haven't made we didn't make very much change to the presentation, but I know we do have any board members. So, if y'all have a question, please feel free to stop us. If not, we're just going to kind of keep roll through it, but please stop me and I will do that. So revenues
015are our financial resources for a school district. We have local, state or federal revenues. Our local is definitely going to be the tax collection. State the state will fund us a little bit based on the funding formulas. As you'll see later, they're going to be less than less. Federal federal funds within general fund especially are minimal almost. So let's now talk about local revenue. Local revenue is calculated by the admiral uh taxation meaning the values in the K county for $100 of value apply the tax rate and we come up with the levy which is what we operate with recog. So in recent years the tax rate has been compressed. Basically the state has said your rate has a ceiling and so every year it's compress a little more and a little more. And the
016idea that the state is headed towards is that school districts have no poverty burden for the school district. The the state wants to fund school districts instead of local communities. However, there is a allocation formula called our entitlement formula by which all these things are applied. One thing that I show up there is that um to recognize it has the option to have a veer to show the state that locally we are um adding additional effort to the revenues and we will get into that when we talk about rates here in a little bit. So the local rate is calculated by the business director. It's calculated on forms that are prescribed by the state and again we will talk about that just a little. Let's talk about property values. Um so those are all the
017values of all the properties that are within KY county and they are certified by the chief appraiser in July. The chief appraiser then sends those values to the state controller for what for what is known as the state property value study. The property value study then is um required by the state because the state measures the equitable distribution of the funding throughout the whole database. The state determined whether the values that were sent by the appraiser are within the 5% statistical margin of error. And if we determine that they're within there, the values are then considered valid. If they're not within the 5% statistical margin of error, they are invalid. And the state says no, the values the cat sent over to us are not valid for your entire calculation. we're going to use the
018state values which are higher and so that in turn causes a funding gap for the school district because they assess us higher values higher we are increased in in um I guess we're more rich than what initially we were and that's why we we have that funding gap. So when you think of the property value study, it is again for assessing where where the values fall within the the rest of the state's values, but the impact of those values is kind of what is critical to us. So in April, we received preliminary values. Um, and we use those values to begin the proposed budget and the final final the adopted budget by June the 30th. So, we've got those values. You'll see some of that information after this presentation. Then in July, the chief of
019certifies his final values and creates everybody's tax bills based on those, sends us those those values. We then um use our rate to calculate the final levy, which in October, he sends out the the bill, sends us the the the levy, and also sends it to the state. So that's we're now in October, but remember we started our budget on July 1. So now here we are in January. The state controller says we saw the values that the chief of police submitted to us. We've tested them according to our state um formulas and we see that your values are valid. Great. We keep moving with the budget we prepared back in June. If they say they're invalid, usually it causes us to have to return money or to operate with less money because remember if
020they give us high values, the formula then puts BISD as being able to contribute more money locally but yet we didn't have it because in October we didn't fill it out. So what happened? that paper from somewhere. We cut budget and then August the final results we protest the superintendent has the option to protest which she has for the last few years. We say state we're going to protest those values. We we um have someone that helps us with that. They protest the values by August. said, "What you protested? Uh, no, my values will stick or your values will go back to your current because what you protested was okay or we just dropped a little bit." So, we will not know final outcomes of the property value study until August of the next fiscal
021year. So, it could potentially be at that point also. So, let's talk about state revenues. Now uh the state has what is called the foundation school program and the school finance system. The state establishes how we're funded through an entitlement. That entitlement is based on the number of students that are enrolled, the size of the district, the property values and the tax rates. So basically they look at us kind of with the through the pens lens and finds some information and data on us and says well we think you are entitled to this number. So once that entitlement is established then um they start looking at how much this local share is going to be based on property values tax rate election rate. If property values uh with the rate and ation rate exceed what
022TEA determines is what is our entitlement then the district is basically generating excess revenue so that's recaptured by the state that's important to consider at this point because if our values are are when we work the budget the uh the values that we use for that budget we we can calculate if there's going to be recapture and we can book it. We can book it in the budget. We can let everyone know there's going to be recapture in this budget. If recap doesn't appear to us until February, we didn't book it. So, we didn't plan for it and so it catches us off guard. We can't collect different tax. So that was uh so let's talk about tier one. So there's two tiers within the entitlement formula. Tier one considers the basic allotment. So the
023basic allotment will increase $55 this year. there is uh surveys statistical information floating out there that actually it should be more over 7,000 close to eight in order for it to account for inflation. So that $55 increase helped but didn't really solve much because it was uh inflation. The basic allotment is using a lot of formulas within the entitlement formula. So it is critical because it's applied on a weighted uh average to the students that are in special ed that go to CT they get a little more um because we spend a little more on those students. Um your tier one allotment also takes into consideration the tax rate. So, of you, Kenny County BIFD, did you uh ask your voters to go out for the maximum rank, which is 17 cents on a tier
0242? Because if you did, we'll give you a little more from the state. But if you didn't, well, you didn't put in your local effort either. So, currently, BISD for 2025, our rate was 5 cents above the compressed rate. So that kind of question the 6169 is the rate that the state says is our cap. We cannot go over that for the state purposes unless we uh do a 5 cent. That one is we could do an additional 5 cents to the to the rest rate. The full board approves the 5 cents and we did that. So last year our tax rate was 61 plus the 5 cents. Now, do we want additional enrichment money? So, the state says, "We give you local um community to have some more money from the state if you
025tax above what we're requiring you to." So, there's a guaranteed yield of tax pending effort up to 17 more cents. Remember, we we did the first five just on board. So, there's an additional 12 that the community approved. and the state will also match the local. So looking at tax rates, the the first little green piece there, tier one, that's that's where that cap the the FCR is. So that was 61 cents. Can't go above that. Set that and we maxed out on that. Then you get into the UN. There's eight of those. Okay. So the first five are approved by the board. We've done that. Then there's so of the first there's three left that the community must approve through a VA that would go into the copper ones because we're very recaptured. If
026we were to get it to those and the community voted, it would just all go back to the to the state. So the beneficial pennies for this community are the next three because they would be doing recapture uh for us. So they max out on the go right now. So the way TEA explains excess revenue is they do it by tiers. Tier one remember basic no excess revenue there. Tier two, if we go out for the golden pennies, they'll pay us 023 for the basic. So you multiply that by the 215 and then they'll say, "Okay, well, you're entitled to all this. You're connecting it from the community and then we're going to match a certain portion." Same thing with tier 2. If you can see there, those pens are going to be worth a
027whole lot less. And for us, it's going to be going before we districts who were nowhere near. Um so as you can see it's it's a balancing act. As the local values increase due to market value rising due to additional property own the state share is going to you'll see that um in a different slide a little more capture the um this is basically just a definition we have already talked about that if our local revenue is in excess of the content we're going to get back to the city um before 2019 it was uh excess revenue was calculated in a different way than it currently is. So now it's caused by the property values. If our property values increase, then we're going to slowly get to recapture because we don't have unless we get
028an influx of enrolled students, we we don't have access to that extra money. So we have to give that to the state. The only place where the value added to the role isn't returned to the state is if we had debt service that the any additional value added to the state on debt service is never returned to the state. All that extra value can be used to pay down any debt. So that is kept here if you have that. Now, um, we're identified whether or not we recapture by July 15th. By then, uh, we've got a proposed budget. We kind of know what our data is. I tell TEA what we look like and then TEA, um, if we're identifying, we have to tell TE how we're going to pay it back. nor in the
029last few years we've been paying it back by letting them keep their money what they were going to give us. So they just don't spend it. Here's a history of the revenue. You see the blue? The blue is the local. So over the years local community been paying more towards the school district than the state. It's kind of li formula around 20. Um, how do we reduce value? Well, like I said earlier, we the purchase of attendance credit mean we educate students in another school district by 78. We're going to do that. Keep our money. We can consolidate with another school district. We can detach property to another county. There's a lot of ways to do it. And if we don't do it, TA comes in and does it for us. So the funding system
030in Texas is complicated. Um we have to achieve adequacy, equity, efficiency with a lot of things that we really don't control. The economy, the the law, the the inflation, this is taxing. So, federal revenues, federal revenues are usually designated for specific person. In our case, most of it um has a specific use, but I have included the school lunch program there because we subsidize the school lunch program even though they get school they get federal revenue. We were getting Medicaid reimbursements no longer because that also has changed at the federal level. it is no longer um available. It's available. It's just expensive to go private. Um also it's subject to application. There's a lot of accounting that we ask with federal revenue. There's a lot there sometimes requirements on how you can use it. There's
031a lot of procedures that need to be in place. There's time beginning timelines, ending timelines, procurement requirements, reporting requirements. And so um we have a lot of federal revenues but within the general fund very little. Part two expenditures and fund balance. So let's talk about expenditures. Again we said that this is the use of our resources for what we identify as our needs. Um expenditures are pretty much state restricted and they're very guided. So the state says u your revenue for your career technology program is such but you need to spend at least 55% back in that program. Your revenue for special aid is such but you need to spend a dollar more every year than last year. Um so all of that we're we're bound to make sure we spend how the education tells
032us we need to spend. Not only that, they set up uh a host of indicators that are in the uh first report. Basically, they green us every year and they say, "Did you pass this indicator? Did you spend on that?" That that way we do keep with us. We do um submit your audit. So, it's kind of our little um compliance report. They're constantly monitoring. They're they can audit us at any time. We have desk audits. We have desk reviews, we have financial audits, we have all sorts of audits. Um, and then we have the fast, which is a financial accountability standard resource guide. Basically, it's a Bible that says here's our code everything. If you're going to spend uh money on supplies, code this way, put it that way. So, we all have the
033scripture coding because when it all gets to the same level, we're uniform throughout the Texas for comparability purposes, we all use the same structure. Um so the board approves budget limits at the fundamentals. So we'll talk a little bit about those. The fund is a selfbalancing type of account that basically has a purpose. So the general fund the purpose is operation. The service fund the purpose is to to conduct service activities. The debt service fund. The function identifies the purpose of the transaction. So within the general fund we pay for instruction, we pay for health services. We pay for facilities. um for that are processing so those are the two main are high levels that the board. So for 2025, our audited expenditures, the last line on the bottom was instructions. Very little I can
034see that if you can see, we spend most of our operation money in instruction and the rest of it is operation. So then uh after function we have objects. So the object code basically tells us that we spend it in salaries, then we do contracted services or we pay in utilities and we buy we have deduction, publication fees, all of those things. So that's how that code is structured. And the reason we bring this to you is because throughout the year as we bring budget amendments, um you will see some of this coding and some of the structure. Um and so we're letting you kind of know how that's set up. Um 25 audit expenditures, five objects. If you see the blue, that's salaries. So out of this time 60 66.3% or 24 25 salaries
035it's going to be increasing because why the state just gave it to you a very large race. So it's going to definitely make that circle through those all salaries and the come with the salaries. So now if we go into fund balance again revenues that's expenditures gives you the changes in fund balance whether you have more revenues or or expenses or vice versa that's that's what how fun balance changes fund balance is the total accumulation of all of our operating surpluses and deficits since the very beginning of our kind of savings account I had to put it in a very simplistic definition It's also the difference between our assets and our liabilities at the end of the year during the or after the um the board has the option to designate fund balance as non-scheduable
036restricted committed or assigned depending on any questions that the board wants to work on or if there's litigation pending sometimes more specifically but balance for litigation. So there's three types of funds uh budget you've got expenditures and equal revenues balance budget expenditures and revenues are equals for budget expenditures are extended revenue on fund balance policy 2025 audited fund balance was 5.7 million ta recommends that we have at least 75 days of operating balance which is 2 million we um definitely have that available however if we go to fund balance 25% or more on the first report. It's going to be called out school district. We have to publicly explain that because the first report is a public report. Um what we I recommended superintendent six months of film balance is about $4.8 million because we
037operate highly on taxes and those don't come in until uh mostly December or January. And so we want to be ready with cash flow for that. So here's our fund balance history from 2018 to 2025 on a bar graph and we'll also see it on a spreadsheet going forward. And then the rest of it is just some information little bit of research. We're we're continuously checking our um business superintendent and I we're constantly in meetings. We're checking to see what the rest of the school districts are doing and sharing some information there. Um, as of the 89th legislation, we did have a few things that that impacted us. We again had a lotment increase $55. We the teacher retention a lotment, which was that nice salary increase that the state paid for the teachers. Uh,
038we have the aotment for basic costs. Basically, that went for teacher fringes because they didn't cover fringes. Um, now there's vouchers floating around. They haven't affected market just yet. find out within the next couple of years. And then we have a lot of abundant mandates that came out of that district session. Also, uh TASO puts together a finance survey that came out with this uh a couple of days ago. And so I just took a few screens out of it and shared it with you. This did the survey of 263 school districts that they did do, most of them are going to have um deficit budgets this year. They're not operating. values are surplus anymore. I I haven't seen a solution upgrade balance surplus in years in a couple of years at least. So what
039are the likelihood of significant cuts for fisc year 27? This is what that survey said. Most school districts are going to make minor cuts 43% 37% are already making drastically significant cuts and very few are not making any cuts. likelihood of salary increases. 52% of them are saying they're going to fund them out of other cuts. 31% are not going to give increases. 17% say they have enough resources. So top three challenges for school districts according to this survey. The biggest one deficit, lack of resources, declining enrollment, aging facilities, lack of qualified staff, low student attendance, complexity of state and federal regulations, cash flow, political turmoil, and getting so and that concludes the presentation. I've included links here for you if you want to to further research the information in here. you can find site
040um our website for her miss and mine are there and our phone number if there's anything here that you would like for us to expand details on I'd be happy to discuss and other and if you have any questions I'd be happy to take any of those on the screen >> I know that was a fast and furious approach to to school finance of 62 slides is is a lot. Um, but that's just kind of giving the background information of of the how and the why to some of the upcoming information. I we will take a few minutes if there's any questions on on this part of the presentation and if not we'll we'll keep going to um I guess more targeted graphic information. And again once you go through this and read it. >>
041So if there's no questions I'm going to go ahead and open up the document that says budget workshop number one. >> Um yeah. or you want me. >> So, very similar um format to what we've shared with you all in the past um in regards to budget workshops. We went back and look to see what what is it that we presented to the board um last year during the first budget workshop. And we start basically with the budget adoption calendar which we adopted um probably January, not February. We've already made some changes to it. We've tweaked it and we do that along the way just basically to make sure that we're in compliance. So um compliance I mean there are certain things that have to be posted within 10 days. We have to have a
042public hearing within so many so many days. So um our budget calendar for this year um started back in January. So we're on that first page, you know, um May May 7th. And so again, today was to review preliminary expenditures, um to look at the compensation plan, uh review projections, some prelim preliminary values, and discuss some priorities and see the direction that the board would like to go because on Monday, May 11th, we do have to adopt the employee compensation plan for next year. And then we'll already go ahead and call the public hearing. The original calendar, and I like to be sure to point this out in case y'all are looking at the original calendar or any old calendars that are out, had a workshop on May 14th. I think Thursday, May 14th, we
043did away with that one. Okay. Um, so if we can get because we put this one here and we have our regular scheduled board meeting on the 11th, we didn't feel like we needed to call another meeting just to adopt the compensation plan that we could do it part of our um regularly scheduled meeting on the 11th. Um, so that's that's changed. And then um budget workshop number two would be on May 21st, which is a Thursday. Um, and then we'll make sure that the rest of it until we meet with the public hearing on the 15th, um, is stuff that needs to be posted. So, we'll make sure that we're posting everything on on time, that we're publishing everything on time. The other thing that I want to call to y'all's attention is our
044regularly scheduled meetings are always the second Monday of June. Um, the first Monday of June this year is June 1st. So rather than due June 8th, we're actually pushing the meeting back to June 15th. So if you look at a at a June calendar and say, well, second Monday of June is the 8th. We don't have a meeting on the 8th. We have a meeting on the 15th. And that just kind of helps with our timeline to ensure that the um budget and the proposed tax rate are posted for the correct amount of time before we actually have a board meeting to approve the budget. So the goal would be to adopt the budget for our fiscal year June 15th and make sure everything is posted on the website by June 30th. So again, those
045are just some critical dates to look at that are coming up and then I think Among has shared several times throughout the presentation about how there's always a moving target. you know, we start with preliminary values and then we get certified values and then we get So, we're always having to come back to this budget calendar um to see what's happening. You know, what has changed? Has there been changes in values? And not just values. Um but this year, we even experienced the change in enrollment that we weren't expecting. So, you'll recall we came back to you guys and said, you know what, our ADA is off from what we projected. Our enrollment is off from what we projected. So we have to make some changes. Um so so those things are also listed on
046the budget calendar as days that we plan to come back and we review and we see where we are with the tax collections and we consider bud budget amendments. So by by November 31 by October 12th we bring you to the board any adjustments that may need to be changed because of significant things that may have been adjusted. Um, page four, uh, I'm obviously going to go into a little bit more depth of, okay, so what do our numbers look like? So, this is our preliminary proposed. Okay, so it's not the final proposed. It's not what we're adopting. It's it's our discussion starts. So, um, and some of it is already set and then some of it is let's talk about it and see what we want to do. Um so we'll begin with estimated
047revenues for our preliminary proposed budget. So again the formula was revenue minus expendry gives us our fund balance. We're going to talk about nonb revenues. We calculated revenues based on in what we think the state is going to give us and of course what value property values will do for us and the tax rate. We don't really know those numbers very well just yet. We're kind of taking a step back. What we do um see currently is that the fifth six weeks we were at refined EPA at 448. So enrollments dropped. So as a um dropped, we received preliminary preliminary values from the chief appraiser. Those are his values. They've gone up 1% uh from last year's values, last year's certified values. So if you'll recall when we discussed the values in February that the
048state had assigned us the state values uh gap was 12 about 12% from where he was where the chief was. So we could miss and I went back and forth about how to budget this year and so we we took the actual state values that we got assigned this year and marked those up 3.66% to calculate our preliminary value. Why? because the expectation of coming up 12% from from certified value from last year were not indicated currently since it was only a 1% increase. So this year we did that differently. We're we're kind of getting ahead. Um now we hope that during certification that gap begins to close a little bit. solidity was 1% because we do understand that preliminaries may not include everything. He's still doing ARBs. He's still um doing minerals and and
049doing all commercial and so forth. So based on that, we we expected those values to go up a little more certification. Just not sure if they're going to close that 12% gap with the state. So we're closing that gap a little bit globally with the 3.6% 6% increase which is what the state is showing us has been their increase on their values from year to year. So this year our starting value is the same. So I I think just to kind of clarify there was option one okay when schools create budgets is to go with the preliminary values you calculate how much revenue you're going to generate based on preliminary values. As a school district we chose not to do that. Okay? Because if we do that and then we end up with state assigned
050challenges again, we're going to end up coming back to the board and saying we need another $300,000 because we didn't generate the right amount of money. So because we have the historical trends, because we have some background knowledge, we couldn't ignore the fact that we've been saving values for several years now. So we you know and we did we looked back and forth on what is the right thing to do. Okay. Well somebody said well what are school districts supposed to use preliminary values. Okay. However, we didn't go that route to be a little bit more fiscally responsible and because we are aware of the the gap and we want to be identified so we're not coming to the school board in the springtime in October or in the springtime with another request to have
051to dip further into balance. So, we're trying to be ahead and and plan moving forward for I'm going to use the word worst case scenario, but we're not even moving that. We're kind of doing a middle ground. You know, we're not doing worse. We're kind of doing it in the middle. It could be as bad as this, but maybe it's not going to be bad. So, we kind of picked a middle ground based on what we've seen >> with what the state with what the state has assigned. >> Yes. continue it was data analysis and saw some trends and that's what we were able to come up with and then at that we acquired typical convention rate is usually about 96.7%. But um so based on all of that the state would be funding $362,000
052of that. Now if the values don't materialize the state value won't either because remember the state only rewards the local local effort. So local effort doesn't isn't there. So will the state problem. The tax rate this year seems to be compressed about any less than it was last year. However, we're not going to know the actual um compress rate. DA gives us out August 5th which is um right around the time we start um in September when we approve the tax rate. The first meeting in September. So we have to wait for a lot of things to kind of settle to get that rate then to come to you to tell you what it is and then talk about the enrichment rate of 5 cents. Um so having done it this way we would see
053recapture at 115,000. So is that could that potentially increase if we get a state of sound assigned balance again in February? Yes, it um as our values were appropriations. What we um are going to present to you include a proposal for salary increases. There is no funding for any um additional facilities or major projects. It's your regular maintenance as a little bit of proactiveness but uh nothing major. food service program. We continue to lead the community eligibility, meaning all children have a free lunch and breakfast. Uh we are in our fourth year because of our change in enrollment and things. We will have to reook at things the following years. If we qualify, we get an extension and if we don't, then we'll want to reook at that program. Um so that program is subsidized
054by the general fund by about $120,000. So, as we present numbers to you, our revenues and appropriations are going to show an estimated fund drawing, meaning a deficit budget of about $650,000. So, I want to go back up just to the second bullet. And again, just to provide you all with some information. So, it says facilities or transportation projects, no funding. However, you watch our live school and you see, oh, Miss BS is putting up new fencing, you know, oh, Miss BS is, you know, putting up new doors. So that comes from grant funds. So there's no local funds, there's no one funds from the general funds or facilities and improvement projects. The projects that we've been able to do even this year, um we've been able to tie them to a safety initiative and
055use grant funds for for those types of projects. So this is just general operating funds. We do have uh funds, ground funds, but we're not discussing those here. collaboration. Um, if we look a little bit to our proposed I mean the no legislation bills. We talked about those a little bit already. Um, let's see what's new here. Well, and out of that bill came new funding for special education, but the state of course has to complicate things and so their formula for calculating the new funding is not out. So, we are using the old law to And when that new funding formula comes out as we say often, you know, that's why our budget is we target because there there's a lot of players in it, very little. So when they come out with that
056>> and I told them it that very well could be like bonus money. Okay. So basically, they're going to fund some of our higher need special ed students a little bit more, which makes sense because if you think about a child who may be receiving special ed speech services, okay, and a child who is maybe a life skill student, they were funding those two students exactly the same, okay? Whereas the services that we provide them are extremely different. So now the state is taking a step back and looking at that and saying okay if a child is coded a certain way we may we may do a larger a lotment for students that require services. So we do have some of those students. So I told I do foresee that we'll generate a little bit
057more special ed funding but they're not doing any of that for us until the spring of next year. And so then it's like you have to service the child all year with what we have. And then they might say, okay, you actually ended up being eligible for $50 extra dollars, you know. Um, and then that would be bonus money that would go back into the fund balance since we allotted only the original. So, we may see a little bit of relief come spring, but we don't know how much. We don't know how little and we don't know. >> So, we're >> so we're not planning on it. So, it's like it's like we don't know until we get it. >> So, property goes, we pretty much already talked about the impact of those and why
058we did what we did. Other impacts, inflation that's been about 14% since 2019. Uh we've all seen things like our gas go up. We um you'll recall that last year we entered into an interlocal agreement with Hazby to have a fixed rate for gas. We had it at about 220. We we we purchased it at 220 but it was $4 out at the gas station. So that was good. It was long. But this year they're not offering us that >> because of what's going on. And so that's difficult for us to budget off. So I don't have a log gallon or default rate. So that's going to be difficult. >> Yeah. So that's one thing that's caused that that that impacts our budget. Um property insurance, you'll be seeing that in the next meeting. It's
059gone up. That's impact investment um interest rate has dropped. We're not making as much as we were on um investment revenue. We have several team that expect so before before we continue because we're going to get into some of our budget projections. Um I do want to commend for the work that she's done. It has been quite a ride these last few weeks. I don't think either one of us left before 6:00 because we were really trying to see where we could cut um down to every little line right it did we really need that we dropped this what did we spend on so we in in the four years that I've been a superintendent I don't think we've ever superized the line items the way we have this year and it's even been going
060a lot back and forth that I would give it back to her and say okay we got to find it you know and and we couldn't go with it. There was nothing else to find. And I think that it goes back to that inflation rate. So, we would cut and then it would be eaten by insurance. We would cut and then it was eaten by utilities and we would cut. And so, it was some places I I feel like as we go through this, I I want you to keep in mind that there are other places where we cut more, but then it was taken from something else that had that had an increase. So I think the next few pages have to do with the district goal three. So district goal three reads that
061in order to reduce the deficit budget because that's the goal is to reduce how much we keep having to draw into our fund balance which has ranged anywhere from 800,000 to 1.4 million in the last four years. So in order to reduce the deficit budget, all expenditures will be reviewed and adjusted to include a decrease in the logic between 5 to 11%. So if we go through this um and again this is new so we haven't ever done this with with the board um before but what we put together was you'll see a column that says 2526 adopted and so this is what we predicted for this year what we were going to spend in that area. So let's just kind of look at um instruction. So instruction is the first one. So uh that
062includes payroll cost, contracted services, general supplies, and other operating costs. And so you'll see each of the the objects that fall under that function. And then you'll see whether there was an increase or a decrease. So what we were able to decrease about 9% from instruction. Um you go down to instructional resource and media we were able to decrease it about 16%. Um and again most of them have similar things payroll contracted services and supplies because people are paid from different functions um depending on their role in the district. This goes back to what we discussed on what the codes are, the function and the object and and I would even say that over the last three years we have greatly improved our coding. Um, you know, I I think that we make sure that
063every or we try to ensure that every expense is coded to the right function so we can really see, you know, where where we're spending and and why. Um, and again, I just want to remind y'all this is preliminary proposed. So, where you see not a very big cut doesn't mean we're not going to cut more. There's just so much to look at. We're not finished yet. But the goal is to cut um all the way all the way across um some of it. So, for example, um if you look at look at the at the top of the guidance and counseling, um we have um two and a half counselors, okay, that work for the district. Um our half counselor um is going down a day, so she will be here twice a week
064instead of three times a week. And so that helped um with with that with that cut. So, some of the cuts were a little easier because they were by attrition. Okay. Some of the cuts were difficult decisions. Um, but we did go through different things. You can keep scrolling on it and look at areas um to cut. Um, the health office. Um, this year we tried to make sure that she had some of this most of the supplies that she needed, you know, so can we cut a little bit of supplies there, you know, training services. um seeing so if you look for EDA our general supplies was 12,000 and we dropped it to 5,000 because this year we replaced some of the batteries in the 80s. So what did we do this year that
065we won't necessarily have to do next year? So you can see um the cuts there and I'm going quickly then I'll come back and answer questions. I do want to point out because this one just looked weird um was the uh function 36 and which is extracurricular and it looked like almost a 6% gain in kind and so here I'm talking about people with coaches and then they're like wait what did you do you added another coach you know and so we did not um this has to do with we have not finished the 2526 year. So that 267 isn't complete. Okay. So there's um there's some stipens that still haven't been coded to 2526. There's some payroll that hasn't been coded to 2526. So we caught that a little bit late. We actually caught
066it today. We thought why is that off? Because we have not increase in coaches and we did not increase in siphons. So once we make the corrections, that one should most likely zero out or drop just a little bit because in some areas we did have one less coach. Um so there was maybe some slight changes. So that one I can tell you for sure is not a 6% gain. It's either going to be equivalent or a little bit of of a drop. Um but you can see even with that gain there was still a drop. Um, in the other operating costs, we cut about 13,000. Um, other operating costs is the meals, okay, fees and hotels for when our students go beyond um, district play. So, usually district and by district play do not
067require hotels. It's not until we hit area and regionals that were in Corpus, we're in Kingsville, you know, that do require um, hotels. So, in meeting with the coaches, what we've discussed is doing um more of a try out um type program, athletic program where it's not just because you signed up for the girls basketball team, are you on the girls basketball team? So, um I'm I'm using girls basketball just as an example. Um so, if you had 18 girls come out, what is what is a team? Maybe you need 12 girls. So then the coach would decide, I need a strong team of 12 and so we would have triyouts and so it would be 12. Maybe we would have 18 for home games, but when we travel, we can only take 12. So
068we talked to coaches about limiting the number of students that that travel um when we when we had out of town. So that ended up being about possibly about a $13,000 savings. But there is you can see that that is um quite a big expense. Um this year was significant and I've said it several times it was a good problem to have but a problem nonetheless we had lots of kids advance beyond my district. You know um in the past where we had one student traveling to regional track you know this year we had seven you know and so um we had to some adjustments, but we feel we can still make some cuts in that area. You can keep going on just kind of scroll and I'll just let y'all review that for a
069little bit. Um, you know what? Let's talk about that 90%. So, that 90% increase. Okay, that's an entitlement. So, um, basically why it looks like an increase, it's because, um, the the one of the changes in the legis legislative session was to give a little bit more money per student for safety and security. So, we're getting more money. So, we have to put more money in the 26 27 proposed because they're going to give it to us specifically for that. So, that's why you show um an increase there. And as Alia explained to me several times that some of these are just book entries. Okay, so they have to be documented somewhere. Um we always put a little bit of money in um oh uh for function 53 um the 120,000 for capital outlay that
070was rate. We got it last year. We're not getting it this year. So that's an automatic drop. So that's why that drop looks so big. Um and and I think everything else is just kind of stuff that we we have to do. Um we have to send um our payment to cluster for special ed services. So that's the SSA payment to the fiscal agent. That is determined by the number of special ed students we have over the overall IDA money. So we pay 22% of our IPA money goes to the cluster. So this year 22% is 21,000 which is more but that's our entitlement that we're required to to set. So it goes up but because we have we don't we don't have a choice. We don't have a choice. Those are payments that just
071have to be made with everything that we've done to date. Okay. Which is not to say that we're not going to do more. There's some things in payroll that we're still looking at. Um I if y'all recall I shared with the board that we got the lasso print. Okay. Um the lasso grant requires us to have an administrator to oversee the grant to ensure that we are meeting the demands of the grant. And so we've been very fortunate as we shift for as one grant ends and another one begins, we've been able to continue to get grants. So we do have some people that are funded through grants. That grant also requires the principles to do some very specific work for that lasso grant. So because they'll be doing work for the glass grant, some
072of their salary will even get to be paid out of their glass grant. So you'll see some of those um payroll costs for on the administrative side that'll shift over to to grant money. So you'll see a drop there. Again, just haven't finished putting all the codes in the right in in the correct place. But with what with what the with the work that we have done, okay, before having to pay recapture, if we didn't have to make that payment, okay, um we would be looking at savings of over 800 $800,952 is what we cut from one budget to the next. Last year, we we budgeted expenses at 9.4. This year, we're budgeting expenses at 8.6 and 800,000 or 8.4%. Now again, realistically, we know we're going to have to put some money in there
073to pay recapture. So, we're saying, okay, let's add that in there as an aotment that we know we're going to have to pay. So, you add that as an increase that didn't exist in the past, and that changes it um up a little bit. So again saying that with what we save we have to take what we save and then we have we have to pay it out to something. So in this case it's paying it out to cash. >> But um that doesn't also include you said the lasso the lasso grant >> the lasso grant has not been accounted for in your estimate what that would save you wise. Well, and there's I would say 67 maybe about 80,000 >> salaries >> and then but 50 for one and then we were going to
074put the for the other two principles I would say anywhere from 50 to 80,000 >> yes because again it's a brand year mark 70% specifically here and the other 30 you're specifically here so salaries was about um 55 or So supplies. >> Yeah. And and that's where we were able to notice there's a lot of places where I cut supplies and it was because I can purchase them now through the grants. So that way there's still something that teachers need. I can still find ways to get get them those needs through the grant. So that last function 23 salaries for which is your school administration should drop by >> correct >> from 404 which would also increase your percentage >> correct >> from 90 to get it up close to >> correct. Yes sir. >>
075So that doesn't include >> yeah so so has not been put in that yet. So >> yeah, so the payroll cost is 3.98. We can let's say we we subtract the minimum. So the minimum would be $55,000 would be subtracted from that 398 money between this 213. And we never like to put the money in until we get the official notice of grant award. So we've already gotten the notice that we got the grant. We've already gotten the award amount. We've already gotten the notice from TEA, but Alia hasn't gotten what she gets where the money is there. So once the money drops, then we'll go in there and we'll make >> um from the So the grant itself was 533,000. um uh for this 533,000 but three uh 70% of the grant is required
076to be spent on curriculum coaching and planning and that's what we hired on. So they're coming in. So they got 70% of our grant money and we use the other 30% to supplement to supplement >> 30% of the half a million >> we'll be put in here >> and I would say supply there's a lot of it that we already put in there because when I told my mom yes we can cut supplies we can cut supplies we can cut supplies so supplies was the first thing that I I I would say I targeted because I knew I was going to have supplies in the fr so I could drop their supplies a little bit. Doctor supplies a little bit so I can get the rent. So we we did drop we did already account
077for sub. I don't want to send the miss the mixed message that $200,000 for the grant is going to come in here and change that amount. >> No, that's why I was asking. Um >> but you will see >> salary wise I know you already come for supplies and stuff but salary wise is what I was kind of asking. our figure on the low end we're looking at about 50,000 >> correct and we can always do amendments and go I would say possibly as high as >> it's just uh with all this cut you Guys, you're looking at reducing 800 after that cons you guys are going to cut 850,000 from last year's budget and we're still off >> 600 600,000. >> So we So if we hadn't cut, we'd be where we were four
078years ago asking for 1.4 million. That's where we were four years ago asking for over a million dollars. >> And you're going to get state assigned letters. Let's just be honest. >> So there might be more. >> There's going to be more. >> I thought that figure was a little >> It's very conservative. >> I mean, if the gap was 12, we just brought three. >> What was the gap? What was the gap last year? Awesome. >> Exactly. >> But last year you we got to pay 180,000 right >> this year. >> We didn't have to go to recapture but the state changed our entitlement and said your value made you richer. So you your entitlement now you are going to contribute more than the state. So they pulled their money out and said because
079you put yours in. We did. We didn't put any because they didn't get bills out there in October, but we still have to pay them. So Warren had to move it out of drawing to allocate that entire >> and that's what they helped us because the gap was supposed to be about 800,000 five >> about 500,000. So they they also say we know we're giving you state values because we're giving you state values. We realize you didn't go out to your community to collect those in October. We'll give you a little credit. So, they gave us some credit, but we still had to dig into our pockets for another 180,000. >> Looking looking at the values from last year of history, it didn't go up much. >> Not local values. >> Not the local values.
080It's about 1%. Right. And the trend is the state office. It's going to be higher. >> The state is applying about a 3.66 66 increase on our values from their values to their values. They're not using local state. That's what they have. >> So that's why I'm saying I think that's real conservative 120. I think it's going to be a lot more. >> It is. Even if we win halfway that 6% that double. >> So right now you for 3% and we're off >> 12. Like you said at half it's 6%. It's not 120. You're looking at what you say about 180. So any higher that you're looking quarter million sitting back recapture. >> Yes. And and the I guess the scary thing I'll use the word is that recapture is okay if you connected
081it in your business. >> Correct. >> And let's say is because we're all part of the community, right? So if we if if we have to send the state money back, we collected it from the from the taxpayers, usually your higher property value taxpayers, right? So he sends it to us. We say, "Well, we know we're going to send it to the state." We put it aside. The state calls and says, "You owe us. Here it is." But when we get state assigned values, we didn't have an opportunity to collect that probably. >> I think for people who misunderstands me, what we collected on was local, >> correct? not the state though and >> that's where the issue happens when it comes to school finance, >> right? We sent the bills out on the local
082values, but the state is saying actually this should. So because they think we're property rich at this level is where the recapture comes in saying we're going to charge you off of this even though we collected >> local or the state is saying I'm giving you a new value so you only collected $60. send him another bill for another 40 because that's what you should have taxed >> and we don't and that does not >> you can't do that. >> Yeah. >> Because they already paid their taxes, >> right? We build everybody for $1,000. We budgeted on $1,000. Um and the state then comes and says, "Well, oh, we didn't put anything aside for recapture on those $1,000." The state says, "No, you guys should have actually brought in a,000 $500. Um, so based on
083that, you owe me $500 on recapture that we go, but we didn't connect it. >> So where does that come from? >> It comes from our savings. So we will definitely defeat our fund values if our values continue to blindside us in spring. We need to get those values more to the states um agreement in October so we can get the money save it when they call for it. We've got it saved and it's not coming from our actual fund balance. It's been does that make sense? >> If I'm making sense, >> it makes sense, but how do you do it? How do you get that? >> I mean, >> so that's the other deal. We keep protesting the >> sometimes negative because we paid for the protest. We pay you for that protest, but
084but the state can actually say this year you're you're 12%. That's about all we're going to set on your protest. And that's basically what happened this year. Um and so we're still outside that margin. We still owe that amount. Unless the state says your protest, great. We approve everything. You're back down to your values. We're fine. go back to where your budget time that didn't happen this year. >> We're too far we're too far off. So remember, it doesn't have to be exact. So the state does give a margin of error. So as long as we're be within this margin of error, we would be okay. But we're not even falling within that margin. >> Yeah, we margins about five. We've been down to 20% categories. So there's the further we are out of the
085margin the more difficult it is to come back into the margin. >> So that's why this we prepared I think that >> well that could be something we do. We increase it to 7% to the board and >> I just don't want people to have a sticker shot. >> And and that was kind of my my thoughts. It was like we could put it in there and we show it now. Okay. or we don't put it in there and we will have to come public again and let everybody know that the school district is have to go into fund balance because of the state assignment valid. So when Ami and I talked about it, I thought I feel like we need to we need to be conservative and we need to plan for something so
086it's not a a huge hit. Okay. But I also feel like for the sense of transparency is to say, "Look, we're budgeting the best that we can, but if we don't fix this issue, if if we can't get this the the state and the appraisal district to to match better, every spring, you're hearing the district say the same thing. We have to go into savings. We have to go into savings. So since you there goes your last one. >> Yes. >> So you go get that just >> Yeah. And that's kind of >> that's pretty much what's going on right now. Every time you say >> something else >> and I think that was I would say >> there's no for >> and it's just every time we cut something it was like >> you
087know Yeah. then insurance is going to go up. So then I did this but so it was it's just we >> these cuts you know if we go back to um that that slide along I showed districts making minor cuts and districts making major drastic. Okay. Yes. You're going to hear school districts doing drastic you're hearing you can't turn on the TV anymore without hearing about school districts closing schools. >> Right. like they're they're killing multiple schools. That's drastic for them. I feel this is pretty I I feel like cutting $800,000 is pretty drastic for us. You know, we don't have schools to cut. So, we have to cut every little line item to be able to to do something. So, we may not be seen as drastic because we're not closing schools, but we
088don't have schools to cut. So this these are drastic measures that we're taking and we are taking them to be fiscally responsible and we are taking them because some things have changed and it wouldn't be right for me to bring a budget to the board without any cuts knowing that our enrollment was down. That in itself I was going to have to cut. How can I have the same number of staff? How can we have the same number of supplies? How can we have the same number of books? How can we have, you know, just kind of everything if you know you have a few less students to be able, you know, that that you're working with, you know, you you've got to break it down, you know, and so we were going to make
089cuts regardless, but we really had to go in there and make some substantial cuts because we were hit with enrollment decline, ADA decline, and that was the issue of the values. So we were we got three strikes, you know, we we got three strikes. These first two strikes now, enrollment and ADA, we plan we plan for it at the four 490 kids. Again, mighty bonus. Okay, so we're doing a a campaign to try to increase enrollment and reaching out to surrounding areas. So, if we increase enrollment, instead of coming in October and saying, "I need more money because our enrollment declined," I'll be able to say, "Hopefully, we brought in a little bit more money because our enrollment increase, even if it's 10 kids, even if it's 10 kids, you know, it's $60,000, you know,
090so that we we really are looking at this through every single lens possible, you know, and and it is a difficult situation to be in because we do have amazing staff and I have always been extremely proud of the workload that our teachers, our aids, our custodians, our directors, our maintenance people take on. There isn't anything that any of them, you know, won't do. I need you to teach an extra class. Absolutely. I need you to pull an extra three kids for tomorrow's sure will. I need you to go open. Yes. Yes. You know, um we we have a very dedicated and amazing, you know, staff and they do what they need to do with what we have, you know, which pretty much brings us to to the next to and I'll wait. Do y'all
091have any more questions about the expenditure part of it? So, so taking all of this now, okay, um we had the cuts and we said this is what our expenditures are going to be. So then Amalia created the next sheet. And again, this this is something her and I um I would say we started it together, right? Looking at the historical trends of of where we would be, looking at revenues, looking at expenditures. So you have your 2025 um sorry your June 30th June 30th 2025 and then your June 30th 2026 which is going to be the close out of this year. So by 2526 this is where we actually ended up. Okay. So we had stated in the green okay last year in June we were very proud okay that we hit under a
092million for our proposed budget. We we said we're going to dip into 700 746 which was half of what we had previously dipped in. So we're very proud of that budget that we adopted. Um, but then we had $298,000 worth of um unexpected expenses. Well, no, not expenses, lack of revenue. $298,000 worth of lack of revenue. And it came from those three things that I just mentioned, values, attendance, enrollment. So, we needed to to break that up. So right now it looks like and again we don't have the official audited amount but it looks like we're at a million dollars. So that's the blue. Okay. So we should have been at the 746. We ended up being closer to the blue. Okay. Now I do want to point out if you look historically I always
093like to compare green to blue because green is what I brought to the board and I said it looks like I need $1.5 million. we're looking at the June 30, 2025 column. Okay? So, that's what we adopted and we said, "Okay, see us. We'll give it to you. We'll figure it out." Okay? But all year long, we're doing those amendments. All year long we're tweaking. All year long we're seeing what we can cut and we ended up being lower. Okay? This was the first year that it flipped the other way. Okay. um with the budget the way it looks right now. Okay. Um I think Amalia would agree with me to say the chances of it going lower are probably slim to none because basically all the cuts that we normally try to do during
094the year, we went ahead and and targeted them right now and said what what can we cut? So, if you look at the preliminary proposed budget, that final column, we're looking at revenues coming in at about 7.3. I would >> That's good. Thank you. And so then you total all of that at the bottom and it's the 8.1. You know what I I'll just look at it right here. So that way then if anybody's watching online they can see the whole the whole thing. The 8.1 97. Okay. Now the next column has to do with expenditures. Right. So our expenditures are coming in at 864 916. And if you'll see that box there 2627 salary increase model two. That's what we're going to go into next. So we we have three models that we'd like
095for the board to discuss and talk about. Okay. Model two is the middle model. Okay. Um and so it would basically cost us about $82,000 to do the middle model. Okay. That means giving somewhat of an increase. Okay. And so therefore um still staying at what we shared with y'all in the very beginning um a deficit budget of 649 466. So I feel like we're at a good place now where we can discuss the salary part of it because we need to get that um agreed upon. So then we look at that pulls the salary out of the total revenue so that we can move forward with what we need to do. So if you'll look down at the on the next page, these are basically our three models. Okay. So what has happened? Remember
096I said we cut, right? So we've made some FTE reductions to expenditures. Okay. Some of it has been by attrition. Okay. Teachers who have uh who are resigning, who are retiring. Um there's going to be a little bit more that we saved when I move the admin some of the admin salary to um grant funds. Okay. Some of it has been um at employees that we relooked at numbers and the numbers of students that we service and because that number has gone down there's been some at employees that did not receive a letter of insurance. Okay. Um and so in doing the reduction to the FTEES we're looking at saving in salaries $192,000. So with that $92,000 comes a discussion of what do we want to do with it? Okay. So we made cuts to
097FTEES. What do we want to do with the money that is bent okay from that expenditures? I'm going to actually start with model three at the bottom and say what do we want to do with it? We want to deduct it from the deficit budget until nobody gets a raise. Everybody's everybody that that is a true breeze. Okay. Nobody gets a raise. Now that's one. That's model three. Okay. And that 192,000. But then we did that pick up that 600 something,000 and that number. Well, so the only thing is we wouldn't use it, >> right? We wouldn't use it. >> So then then uh model two, okay, is looking at giving teachers their year, we call it a step, but basically their year of experience. And so you look at the compensation plan, it's about
098the number of years of experience on one side and how much each teacher makes. And basically if you were to talk with five years experience you go to the six year experience you know one um and then your exempt and non-exempt because we don't have a step ladder for exempt and non-exempt they end up being about 1%. 1% of the of the market. Um it is very comparable to to a step. Um that would that would cost us um 82 $82,000. Okay. So the amount we save and and I seem to save but if we reduce is about 109 ends up being 190,000. And then model one um I'm going to say is the one that I really wanted to recommend so I really wanted to recommend model one which is the step increase uh
099for the teachers because the state gave them their raise of $4 to $8,000 last year and our at will non-exempt and exempt employees did not get that. Um, and I there are some exempt employees that Oh, sorry. There are some non-exempt employees, and I've shared this with y'all before, that because they work more days, that's where they make more money, okay? But they don't necessarily make more daily rate than a classroom teacher with 20 years experience, you know? So, your principal may say, you might a principal salary and say, "Oh, he makes x amount of dollars." Well, he makes x amount of dollars. But if you look at his daily rate, okay, and the day and day per teacher with 20 years experience, it's very similar, okay? But his salary is so much more because
100they were a 226 contract versus 187 contract. 187 days. And that problem happened because of the $8,000 rates. So their daily rate went up significantly. So I felt like the people that didn't see a big raise last year were your exempt and non-exempt. So my original plan coming in tonight, okay, was model one. Okay, that's me looking completely 100% at only the human element, at only the people side of it, at only the heart side of it. Okay, so then I have to take a step back, right, and say, okay, but I've got to look at the financial state of the district. Okay, and so looking at the financial state of the district, and Molly will tell you what's best for the financial state of the district. three. That's best for the financial state of
101the district. My concern is is that with lowering teachers and lowering aids and not giving them a raise, how many of them might walk on and say, "I can go to Del Rio. I can go valley. I can go to Eagle Pass and make more." You know, because one of the things that kept our staff here was a class size of 11 to1 was a class size of 13 to1. By reducing some teachers, we're looking at average class sizes over no average 18 to 22. That's going to be our class size. whereas historically it's been 11 to 13 which wasn't necessarily fiscally responsible and but it was part of what made our school district you know and attractive and wanted to be here right so in looking at this I thought well then maybe the
102happy middle ground is model two okay where there is some compensation okay and they know that Even though we're struggling and we don't have a balanced budget and we're not going to have a balanced budget and we have to make cuts, we can still give a little something to say, we know you deserve it. We can't give you a whole lot, but here's a little something. So when we put the presentation together, the first page um one of several several of the pages that we shared with y'all included um model two in in our sample in our sample numbers. Now does it have to be one of these three models? Absolutely not. Okay, that's tonight's discussion. Okay. Um this is what mommy and I put together because it was easy to see. Um, but this
103is where where we're at. What is it that as a board we want to do with salaries knowing now everything that we've shared? >> So, let me just off your model for if we did model three, you would reduce the deficit by 20,000. No. >> Well, and the expression that there would be reduced by 82 because we already factored. >> No, if you go to >> So when you put this when you factor in model, >> right? So we were taking 82 out. Is that what we're asking? >> No, he's asking for the second model. I'm looking at the bottom where it says 192,000. >> Oh, yes. Sorry. decrease. >> So, will you pull this one up on your spreadsheet? >> Yes. >> So, model we would decrease our >> correct. >> So, I'm going
104to have I'm going to put it up on a spread on the spreadsheet because then you can actually see what it does. Yeah, it would be another >> So you up there you included the 82, >> right? So she's actually going to put in the number there >> and then you can and then if we click if we put in the numbers you'll see actual. >> So instead >> right so if we did model three that's where it would decrease 67 instead of >> correct. So it would be nothing would go in for the increase. So then our deficit drops to 567. So, model two, >> put in the 82, put in 821269, takes it back to the 64, 9465 that was included in the 649. Take it out and model >> Model 3. Model
105one. >> Oh, yeah. Model one. What is that? >> 141. 141 268. >> So this is a number that's changing >> the deficit changes based on the model. You know what do we want to do with compensation for us once we get the money from that would also change that amount correct in the lift >> for salary. Alaska sorry the last for salaries only about 20,000 >> we already distributed 30 of >> right but not so like I'm going to say for the principles right now are in 199 >> so um my director is already in the 30th >> okay so we have about 10 20 25 So it's going to change it. >> I think it's hard to pinpoint a number and I really don't want to pinpoint the exact number. >> No, that's
106not really >> we don't have that's why we didn't want to. >> So I one of those things I would rather go this way and that would have probably been able to repair the deficit. >> Just knowing what amount it would repair is where we don't we're not sure >> the benefits wise. >> All right. the benefits >> that's for like the the pictures >> because I know what last year was it was it last year that we didn't match the new percentage of it whatever it was >> health insurance >> the premium contribution that the district contributes to some of the premium the employees that do take the insurance. So that'll decision be a decision coming down the road too. It looks like insurance will be going up for those >> like cap that
107right because that would increase the deficit >> because this is based on old insurance rates. And that's why she goes with the percentage that benefits are going to be about 12%. >> And they're a little higher, but because we were not even seeing it that much, we averaged it in about. And that's where we took a hit last year, too, because the state said, "Give the teachers a four if they're in this category and eight if they're in this category." So, we gave it to them. They didn't include the increase in fringes. So the district still have to come in and pay. >> And and another thing is that the state has a schedule that they pay TRS on and it's called the the state salary schedule. So they set let's say a teacher at
10830,000 but yet they're making us literally making us pay a teacher 60. They'll pay TRS number 30 but the other 30 we have to pay. So that 8,000 increase, they didn't increase their 8,000 to cover their portion of TRS and and tonight we don't make an official decision, but because it's on the agenda for Monday, it's almost like I just I need to know what to bring for approval on on Monday. So what what which way everyone's kind of leaning so that way if we have a recommendation um now granted the recommendation can be voted against and then we can bring another one but if we can if we can have some discussion that we already know going into Monday's meeting that this is where this is what everybody is would like to see. Okay,
109that's unused on this sheet right here. This is just teachers salaries. >> No, look at if you look at the top, it says teacher >> and then it says exempt and nonexempt. >> Okay. So, where is again talking about administration? Some are and some are not exempt. All >> good. Um, all on this on the scale on the on the page that says nonexempt, that's the one that starts library manager. So, the library manager is not exempt. The council, sorry, exempt. I'm sorry, now I'm confusing myself. Library manager is exempt. Um, then it goes into counselors are exempt. Assistant principal exempt, ace director exempt. Um, it used to be titled administrators, but we changed it because not all the roles on that page are administrators. And so it kept saying the conversation was you have
11015 administrators. No, I have 15 exempt employees. I'm a library manager, not an administrator. I have an ACE director, not an administrator, doesn't do it, you know, chief takes care of ACE. I have um uh facilities and operations, you know. Um so there's other people that are on the exempt that don't have administrator duties. >> And that was part of the code. >> Exempt is means they don't get time and half for working. >> They're not They're not teachers and they're not at will. They're the other. >> Yes. >> In general terms, you know, I think everyone kind of knows and if you wanted to go with model number three feel like I mean we've done very well with trying to keep up with raises for everyone all these years. But I think everyone has
111to expect someone to see this and hope for goodness state and I think until we get collections on utilities and a use start matching state's expectations. we're just going to see and so I think just for responsibility to say I think model number three I don't I've got enough opinion on the whole deal I say model one I'd love to happen model three I think you're going to cause rebels with frack they're going to I got I've already heard grumblings. I give you our our step. We did our year. Let's get our step. I mean, I could It's going to be I mean, what is it? It's $82,000 difference. We've got a over what we need to hold in the fund balance at the moment. Like I said, I can get behind all those. Um,
112like I said, the teachers are already or all the staff's really well aware that like the last year the Christmas bonus or the retention deal like those are gone to the wayside and you talk about the 14% inflation increase. I mean, they got and their health insurance going up and all that kind of stuff like it's I think it'd be a huge slap in the face of this Thursday. What if we reduced uh our employment? >> How many what was our activities did we reduce? >> How many did we have last year compared to this year? >> Oh, I like that. It was It went down to 115. >> Yeah, it was at dropped about seven almost seven. And that's not just teachers, that's fulltime equivalent something that part. >> So of the seven, how
113many teacher FTEES did we were >> I would say I wonder what we did. I can say three, three and one. So, three teachers, three instructional aid um and one custodian and that's dropped one custodian 256. So that actually >> I actually just pull it down some teacher names on it. Yeah, >> you're still showing names on lines 26 20. that we did not show enough to >> Yeah, it's a little noners. I I would say Jesse I feel comfortable saying at least seven >> and so we went down to 114 and we were we've been from like 128, then we 125 and then 123, which makes sense because our enrollments went from 570 to 530 to >> 42 students lost >> for the last five years. Yeah, >> over the course of the five
114years, not in this one. >> So, Is that all these functions? That's that's as far as you're going to think cutwise. >> I think there may be some minor adjustments, but I don't think it'll be anything substantial where you would see a decrease of 100,000 or 75. I mean, I think if we continue to cut and look at things, it may be a thousand, but you know, it's going to be little cuts that we're going to continue to look at, but I do not see any more substantial cuts. Okay. So I personally am leaning towards the model two as well. I feel like three would do exactly what Mr. Mass said and Jesse it would people kind of open the door a little easier. My thing is that I not knowing how everybody works in
115their jobs. It feels like getting rid of the teachers and the aids knowing that there's so many other opt like there's so many other avenues >> and positions without knowing exactly what they do and their functions. I just I feel like losing the teachers maybe is just like that's where our kids get their instruction. So if there's any other position or any other area we can look at a little differently, maybe that's an option. But my made sense like you you are and and I agree with you but not filling the teacher positions are super hard because the course options don't go in I still have to have the course I have still have to teach the class so somebody else just has to teach it now you know and so it does make the
116teacher workflow you know different but I also feel like where has the loss Yeah, I think we would be criti criticized if we still had the same number of teachers that we have when we have 570 students to what we have 490 students. It it's just and and I think it goes back to why I said like my heart wants to hire and replace every single teacher, but financially to say I'm going to have the same number of teachers for 480 students as 5 um 20 or 550 or 570. It that's where that's where the decline has been. We haven't lost I'll throw facilities out there. We haven't closed any buildings, though I still have the same amount of buildings to clean. You know, we haven't closed any of the um of the fields that
117need going. That hasn't changed. Accountability hasn't changed. It's actually gotten more rigorous and more stuff to do. Um finance hasn't changed. It's actually gotten more rigorous and and more stuff to do. So what has gotten less is the number of students. >> Well, when you talk about facilities, I mean, if not all were using kids, theoretically, there wouldn't be as many rooms used. >> There are, it's like I said, instead of 13 kids in that one room, there's 18 kids in that one. Yeah. >> Okay. So, I guess I'm thinking if we were to shut down a building and move >> and we talked about that and then we have talked about that. We have and that has been a very ri So I'm glad you brought that up because we talked about at one
118point um do I want to close the um prek through second wing and try to put everybody in the fourth and fifth grade hallway and then maybe move fifth grade over to where the sixth graders are. You know that's a lot of dynamic change. And so I just I and I mentioned it at one of the district improvement committees um and it was that there are we were not big enough to close to school and possibly big and possibly big enough building. >> Well electricity utilities even small I mean that's an option to think >> just thinking we have to be prepared. and also answer your question. If we're cutting teachers and aids due to enrollment, they're going to want to know why we're not cutting other stuffs. That's the biggest fright that I've heard
119of because they've known the cuts are coming and the biggest thing that I've been asked is why only teacher need a you know I just we need to be able to answer that question to some of our staff members because now we're going to ask more of our teachers >> with more kids in a classroom right so for me with that you cannot deal with something you're going to you know somebody um but I just know that that question is going to be presented to us as soon as we adopt this budget or whatever they're going to say why only teachers need that that's where I know the biggest heart is going to come from some of our staff members so that's why I'm just looking One of those things has been mentioned to me
120and I hesitate even bring it up because it's more of a a ceremonial national savings I suspect but stepping things some way where there's some kind of a a cut in travel uh administrative pay freeze before coming to the full full length freeze. involves that. And like I said, it's going to be mostly a ceremonial gesture because we all know Travis car and uh the administrative a little bit more substantial than that. It's still not the same as staffers. Um but they're going to that's going to be the things. Why didn't you cut these other things first? what you know why why are they all getting raises the teachers are being asked to do more and uh you know it's one thing uh your city council used to get salary and when city started to
121struggle that was one of the first things that they cut because uh they knew they were going to take a hit they started asking other departments and other divisions to take first and so you know it's not a solution but were positive >> and and I think that's why I shared all the numbers with you. I mean, we can go back and we can look even at something at function 36. I mean, function 36 that's not there. It's the one that was go back to that is extracurricular. You know, there's been lots of talk about there that's not kids anymore. You know, is that something would that >> that would bring you at least one teacher? I would say at least 60 to 80,000. So the fun this is all function 36 is all incurricular
122activities. So you're getting 85. Let's just say because that's what the hospitals are doing. Yeah. I say we go to sack bunches or say hey you're I know it's different time but you know what is your estimation if we did set savings >> I I I mean I feel comfortable if right now other operating expenses is hotel meals and fees. I would say at least at minimum a third of that must be meals if not more you know I would say you know anywhere from 35 to 40% of that is probably >> and that's other operating system >> so that will be that would be you know 60,000 that's one more teacher the other thing and I talked about was that let's say come October we do have that um positive bonus says that our
123enrollment campaigns those great and we increase to 510 and attendance goes up or or hire a teacher because now my thing is if the kids come I need a teacher you know right now the kids didn't come okay so that's why the teachers are being hit because the kids aren't there you know that's that's where that is coming and I can see where well what about all the others coming in and again I can job descriptions. That's that's not an issue. And you'll see in those job descriptions that none of their duties have changed. The pro we still have special ed programs that need to be done. We still have 504 programs that need to be done. We've got a state assessment that is going from testing once a year to testing six times a
124year. That impacts my counselors, that impacts my AP, my principal, and my accountability director. So they're having more mandates, okay, in running programs. So why the teachers? Because there's less students. >> So let me just because I'm looking at this district reduces excess ren. >> I was looking at the one that says detach and certain properties, right? We're looking at the >> I'm just looking right because our state levels are >> Oh, yeah. >> Right. I mean, it was on the first side. So, I'm just going back, but you also have the education of other students, which bringing in kids will raise, right? >> That would help. How do you or for instance debate if we wanted more tax money because our state value is going to be so high you're almost guaranteed that they're
125going to compress us even lower right our tax rate is not going to be 61 cents it's going to be lower >> so you're also going to get less money because of that even if we do the interest what do you estimate about 60 cents a cent more >> at 6669 uh the way I use numbers and values we are at 65 >> so we we're going to lose the >> same okay >> so hopefully you can bring some kids in from another royota value whatever all that works but what is the process that we all detach I mean where's our biggest right now utilities it was off the biggest state and local right that's where it throws us how do we detach from something like that would lower our state average closer when our
126appraisal is that you know because I'm just reading this whole TSC49.101 which is says detach organization of properties >> which I guess they would have to agree. >> I think I know I think TDA comes in. Yeah, >> because but don't you have to apply for that or they do it on their own? >> I I think I think and correct me if I'm wrong about but I think that's what we talked about the tea could come in and remove and remove removed it. So if we can't pay our recapture then they come in and we're >> if you're looking at the trend we're looking at what three four years and we're not going to pay anything. >> So these options would be that if we could no longer purchase attendance credit which basically means
127with the money that TA gives us we just don't take it and they're sending it to some other school district student. Um But we when the state is no longer giving us enough to cover reount then the other options are consolidation with an agreement detachation by agreement. But some of these options here, I would say most of them accept that person of attendance is either requires voters to approve that. They would have to say yes, we're going to be giving some of our um property to the neighboring counties or we're going to consolidate with the neighboring district and then some of this is forced on us agreeing to take action. So the agreement has to be between school two school districts. So according to TEC 49.101, Another one, the federal boards and the school boards.
128So like Del Rio would have to agree. >> Yeah. But for real has a bond, >> you know. >> So when you raise a state level, it helps them. >> It helps them. It helps. >> I mean, I know people here I don't want to say that word, but if we had debt, >> that would have changed this whole >> Well, we would be paying >> with all this. So that's what I'm trying to figure out if there's a way to do something like that to lower our values to get us out of recapture because that's the biggest issue right now. When you go back to the value, one was the utilities was off the biggest and the other was the egg um >> and and so basically it would be if I'm reading this
129correctly and this is I'm bringing it to my attention because I have not looked at this before but if I'm reading this correctly it's basically going to a school going to the superintendent in Del we've got this solar farm department. >> We got about 20 pipeline. Are you willing to go into an agreement with me and you take them off my hands, you know, but I'd be concerned about is that same area that we're detaching, >> right? >> Is it is it it's the territory? Okay. So if the pipeline is in this territory and if there's any um branches or kids or in that territory, I use those kids too. >> So I it would really require us to look at what's >> well it doesn't count. >> That's where the majority of your students
130come. I mean this is where we're at with this stuff trying to figure out what is better. >> So I'm just they'll get they have They have a volunteer >> and they have >> Eagle Pass just passed theirs. >> Maybe they wanted >> which is pretty close to Kamala where they have their elementary school where this pipeline is. I'm just trying to figure out how we're going to try to get out of this. >> I can definitely seek some legal um advice on TEC 49 101 and 105 and see If you get rid of those util let's just say utility matters the biggest you're within or even more than 12% we're off or something >> how difficult is it to get backed a bomb you lost >> don't say that Yeah, I mean our facilities
131are not even the value on the dollar. B setwise, it won't even be close enough. If you were to try to do that again, it just it's because those remember they're front end values of those. So the more you wait to take it, the values are coming down. So you won't get as good a deal >> as you would have three, four years ago. No, >> right. >> Have you looked at what the options would be? Also innovator >> asking for more maybe not the whole >> extra extra >> extra three. >> We did we looked at it. We spent about $300,000. that reduces it by 300, you know, just by asking the presents from the community, which I think could sell three cents instead of, you know, >> and if that's something that the
132board wants us to consider, we need to move on very quickly because >> we have to call there's all those there's there's those very specific timelines for putting something on an election. Well, I mean, I wouldn't want to bust it, but it's something to start thinking >> I don't above all that, >> right? >> P. And if we're going to be compressed one cent less, we would it the community would really only see two. >> Yeah. which would still bring in >> 300,000,000 which >> the community would feel a twocent decrease >> and that's has to be done year. >> Yes. >> So we have to just get it passed. That's something that we need to start considering because that funding,000 students came out. >> It was amazing. That was a long walk so far
133after we left. If you need something to bend build some easily for You will be modeling. I think so, too. I think I think we're still I I I think we're still going to how I think it's still going to be very hard on on the staff >> unless you can figure out another 50,000 somewhere then you can easily pass that model one keeps us at the 640 range >> and I would say we have to probably look at it a little bit more because if you notice That was that was a step just for teachers and the three and three. So if you were going to look at three across the for So right now what I'm hearing uh for Monday's board meeting prepare the agenda item based on hall two. So, can you
134put that number over here? >> On model and and I know it's still a little far out, okay? But um you know we did apply for TIA and so the teachers I promise y'all we worked really hard for TIA to give the teacher some relief you know um with that performancebased pay you know in one more year they have the potential to earn anywhere from 9 to $36,000 you know and that's where the commissioner is going. We had a meeting with him in person. Um he came over and talked to all the superintendents and our teams and um he wants us to shift towards a performancebased compensation plan. >> That's more trying to focus >> and I will do that as well. all kindness and more >> that's that's what's getting us it's not expend
135the three >> okay >> so I have the vader process so I'll I'll bring I'll make it obviously for this May board meeting but what I'll do and so for the new board members what I started was a it's a weekly email um and I just kind of so if there's information thought I did a week in the email that goes out. So I'll do some research on the beta process and then share it with y'all through that members message. Yeah. >> I don't know. We'll see. >> Does it already have those statements and you're able to survive their should they He's like, "Oh, man. It is. That's very true. You know, because all the 17 people most about more. Well, what I hear is that Kitty County is actually taxed very low and tax
136high and that is something, you know, no one wants to hear. I talked to no one wants to hear the county. It's one of the county people, but you know, people in Austin are very much aware told and you know we're going to keep saying this folks folks who knew town you know it was true back in the 70s Joe Garza used to say this is a very poor town it still is and I don't know that uh I think I think a Vader is going to no matter how much you reassure people that their taxes are going to be unchanged because of situation. I think they're going to hear tax increase and there's going to be a lot of friction. >> Yeah. Yeah. >> Yeah. It is just kid. How much more do you
137want to >> teachers? Well, I mean I mean I know the function that's the one that eats a lot. I mean, just what I'm trying to do is stay away from what's going on in the city. To be honest, I'm going to have to get ahead of this. >> There have been absolutely no athletics, no sports, no history games. No junior high, no not instruction. Here's a city. I would never wear those. >> All right. Anybody else? Anything done >> we can adjourn to meet the workshop at 7:56. Six. There is pizza still in the kitchen. If anybody would like to take some >> That's been our last Few months >> everything. >> You'll take care.