Bastrop ISD Board of Trustees Special Board Meeting 4/28/2026

001And uh I will u call this meeting of the Bassrop Independent School District order. Let the record show that a quorum of board members is present and that this meeting has been duly called and that a notice of this meeting has been posted in accordance with Texas Open Meetings Act, Texas Government Code Chapter 551. if you would please rise for the pledges and a word of prayer. We don't have that by the way. I was just seeing if if y'all would do it, but thank you very much for being here. >> We can. Yes. >> Would you? >> I started this. Yes. >> All right. I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for

002all. >> Texas flag. >> Honor the Texas flag. I pledge allegiance to thee, Texas, one state under God, one indivisible. >> If you remain standing, I will open us with a word of prayer. Most gracious heavenly father, thank you for bringing us together here this evening and giving us an opportunity to conduct school business. Lord, we ask that you please give us wisdom. You please give us guidance. Uh these are some some interesting times. Uh please allow us to have open minds to be good stewards uh with what all you've provided us and and for the for the children and the staff and and the taxpayers. In your name we pray. Amen. >> All right. Moving along to uh there's nobody signed up for open form. Moving along to item number three, our budget workshop.

003Our presenter, Mark Mike White, our chief financial officer. Welcome. Uh, trying to get the video set up. So, how have you been? You good? >> Is it on now? My screens are working just fine. >> No drugs. There we go. And that concludes my presentation. Any questions? All right, that's the only joke, I promise. Serious. Okay, so I'm coming to you tonight for uh our first budget workshop. We've had three budget updates uh February, um March, and April. and wanted to take some time to uh hone in a little bit on the budget, talk about a number of things that um I have listed here. The first of which is is the process. Wanted to kind of give you some insight into the work we've been doing behind the scenes going back to I'd say

004as far back as December, January as we started to work on this year's budget. It feels like once you adopt one budget, you >> immediately start. >> It's got to be real still. Nobody move. Nobody move. Right. >> Back when you were the remote control for your parents. >> Yeah, it's going to be a real quick meeting. Um, I think I was still in process. So, um, going back to December, January, uh, the middle of the year, we start looking at, uh, early indications for next year, student counts, staffing, needs, those kind of things. Going to talk about pri priorities that that, um, things that we prior prioritized throughout the um, throughout the process. A lot of it's a short list because, of course, the resources we had available were pretty limited. We'll talk a

005little bit about that. key projections. These are things you've probably seen before, you know, but all the things that are key indicators that we want to track that kind of key inputs, if you will, that could affect the uh the overall uh original budget and affect us financially moving into next year. And then of course, areas to watch, much the same. Um some of those things that we projected um looking at areas that we want to keep an eye on that could have impact on us moving forward. Lastly, we have a bullet for board discussion, but I would say this is kind of embedded throughout all the slides. There's this the entire process is for board discussion. So, don't wait till the end if you have questions. Let's talk let's talk about whatever it is

006um that you'd like to talk about whether it's process, priorities, projections, or um areas to watch. So, feel free the point is feel free to interject at any time. So, process so early on we modeled um we decided to model revenue based on no growth. We we were feeling that. We saw the decline in the spring. We've we've brought to your attention. We had um a a demographic projection in the fall and then of course we got the confirmation in April that the landscape hadn't really changed. So we've been using a model of no growth. So that's important. That's uh something to watch there. Um uh Chris over there helped us roll up student data for so that we could um have a good understanding about what staffing levels need to be. And it sounds

007exactly like what it is if we had a hundred kids, you know, uh, to start the year and we had certain number of sections at each grade level at each school. You start to move those kids forward and find out who's leaving, who's returning, and and then use the data that you have available, um, to determine based on our ratios how many teachers we're going to need. Um, we've held one-on-one in principles with one-on-one meetings with principles throughout the spring. um that being um our our chief HR officer and myself um and with some key directors as well. Um lots of conversations about this process. Then we identified the the needs and the have to. And this kind of goes along with what we're going to talk about with our priorities. We we started um

008this down this road calling all the principles and directors to together to kind of let let them know that this wasn't going to be a year that we you were going to do a lot of wants. We're going to get to a lot of wants. This this wasn't a wishlist year. This was a year of of necessity, legal requirement, um and and what we defined as needs. Um and of course hope to get some of your input on that as well tonight. We identified work with most uh non-campus departments to identify areas they could cut. We've done this before. We've asked them to cut a few years ago. Came back to him again for another 15% reduction. So very lean um uh across the district uh with regards to non-personnel uh costs. We rece we

009received the mobility update um that we've referred to at our last meeting and we went through that um pretty thoroughly and based on that and and everything we're seeing and feeling um and that you're seeing, we're going to use uh the status quo on on enrollment for our budget projection for next year. So, and last but not least, we launched a virtual learning academy uh in an effort to to offer parents additional options, of course, and to compete for those kids and to capture kids that we might kids of our own we might lose and kids we might never get because we didn't have that kind of option. So, that's something that um will be a priority throughout um this presentation as well to talk about. >> Yes, ma'am. >> Question. Make sure I scream

010into this. >> Yeah. Um, back on the on the process when you were talking with the principles, I know the funding for each campuses, how was that determined as far as the budget that principles had to use to work with? Yeah, you'll recall around this time last year, we moved to a more equitable mo equitable model that was a base amount per student um and then you know how many kids you have and those kids kids that were associ right compens comped um driven numbers. So you know that that resulted in some changes nobody lost money but there were some definitely some campus campuses that had additional needs. So we did not change that for this year. I held that constant. Um we did cut those types of expenses for you know departments in this

011room right we led that led the charge there but we w we didn't get to the point where we had to ask principles to cut their aotment now as if they have fewer students you know of course then you know um if we thought they were going to have 700 kids last year and they they had 600 I didn't cut their budget but now that we're starting a new year they're not going to get funded on 700 students if that makes sense >> and they that that's been really clearly laid out student data for classroom staffing levels. Is it fair to say going into this workshop that it's the same as last year >> the process or >> with with no growth? >> Yes. >> Yeah. We're going into the same uh >> data or

012staffing levels as last year. We're going into that that that level this year with this budget. >> Yes. More or less. Now where the kids are, what grades and what campuses that that's the kind of leveling I'm talking about, >> right? >> Yeah. Right. >> Yeah, for sure. And that's that's something we do every year, but of course it was more critical this year because we knew that um you know we staffed on you recall we built the budget based on 480 students. So we knew there was some some room there to um be more efficient. >> One more. >> Yeah. >> On on on looking at the the students for the for the campuses. Um, does does your formula also take in consideration the special needs students or you know the students that have

013to have a little extra? I mean does your formula is it weighted for that or because you know you're going to get some reimbursements from the feds but you still have to spend it. >> Yeah, that's a good question. Um, our formula is is unique in that it takes into account socioeconomics and comped, which is probably the largest, you know, right up there with special education, right? Um, so many of the grants that we have and some of the state funds are already supposed to supplement, you know, be supplemental resources for those kids that it's and it's quite a bit. We, you know, we have that's where a lot of our grant funding comes from. Um, and a lot of our state dollars come from certain minimums. So, um I would say those the resources

014those kids need are already well addressed with our spending level. You'll recall we spend significantly more than we get from the state or the or the feds. So, um I would say that um it was just a an effort to address the obvious, which is that our district is, you know, 400 plus square miles, but it's very different across the district. And so, um but I'm open to suggestions moving forward. It just gets a little complicated when you chop up the same the same amount of money, but you start using too many aotments. It gets uh hard to to make sense of for the for the principles and and hard to calculate. So, um yeah. >> No, keep it simple. >> Yeah. >> And Mike the >> it's worked pretty well. >> You say identified

015non-payroll department cuts of 15%. >> Yeah. So just for the our understanding that doesn't mean we're taking resources out of the classroom these are >> so this is HR and finance and communications and >> you know a number of departments there's some that are difficult operations most mostly utilities and repairs it's hard to to find a whole lot of meat on the bone there but they they they were one of them as well um yeah a lot of a lot of Jennifer's departments Um there weren't many exceptions, but no, these are non-ampus support expenses. What many people might view as overhead, but we know that you got to have them to keep the keep the lights on. So, uh good questions. Yes, ma'am. >> A few years ago when we were doing this, we cut

016non-payroll departments pretty >> hard. Did was there any recovery from that? So, we're asking to cut an additional 15% off of something that's already been cut, >> 15 to 20%. >> The only thing I would say is that at that time when we were trying to cut, you know, 8 million out of the budget, we froze some positions and we didn't, you know, replace them that year. We've been able to go ahead and fill those um you know, for example, but no, we didn't give them back the 15% the year after that or the year after that. So they've they've they started with that and then we're cutting more >> now. Um I mean obviously there's you know we have to keep the lights on. There's there's nothing that nobody's going to be cut to

017where um you know we can't operate on a daily basis. I'll say that we wouldn't we wouldn't do that. But yeah, I think that's the story. I mean that's the story everywhere really is like you you're less and less meat on the bone. It's it's whittleled down to the bare bones. And I don't I wish I could say that trend was going to reverse itself, but I imagine it's just going to be more the same, running leaner and leader uh being stretched thinner. So, but they've honestly it's been well received. I think people understand, you know, I think we did a good job of communicating the why. Um and I wish it wasn't the case. So, good questions. This is good. Anything else on the process? anything leading up to tonight that you'd like to

018talk about that in terms of what's gone into uh the proposal. Okay, let's talk about priorities. Um you're going to you're going to see some some big hitters here. These are obviously uh I think the board's priorities in a lot of cases as well. Starting u with safety and security. That's something that we'll we'll delve into a little bit um a little bit later talking about our uh the plan the board the state approved plan for for staffing officers um across the district special education our our while our um overall growth has slowed or stopped our special education population I would say it hasn't and it continues and this is a phenomenon we're seeing um in a number of districts across the state um really probably the country is the increase in special education needs,

019right? Um, and we'll talk about a little bit of funding that's associated with that as well. Life skills and behavior paras. The pay for some of our I mean our some of our most amazing staff that have maybe the hardest jobs in the district. If you know, you know, if you have any idea of what they do, that's of course an easy priority for us. You can't pay them enough. They're hard to find. They're hard to keep. So, we made that a um a priority throughout this process. um the final phase of the middle school transitions. A few positions that that um as we were rolling into being fully uh fleshed out there with with three grades at all the four middle schools, we had some shared positions and FTEEs and some things like that.

020We we went back and and um really the as they fill out, it was it was very difficult to to spread folks uh across campuses like that. So, we've we've addressed that in this proposal as well. And as you know, we have elementary 10. Feels like we just opened nine, but uh before we know it, a year after next, we'll have number 10 um built. Um you have to do staffing for that a little bit in advance, right? You have to hire a principal. You have to have some office staff so that you can register students and those kind of things. Those expenses creep into this year, right? Those advanced expenses. So, um, have staffing for that for elementary 10 and next year's budget. Um, elementary staffing ratios. We talked about the balancing looking at

021sections, grades, campuses, those kind of things. Um, and using a 23 to1 uh model with with a few exceptions um that we can talk about as well. Operations, we have a preventance m prevented preventative maintenance tac, it's a mouthful. a child child nutrition uh equipment tech and additional custodians for our new square footage. So, three as we as we roll out um and continue to grow at least in footprint and uh and uh and square footage that we needed to do as well. And then um a successful pilot of our virtual offering that was a priority uh we've talked about we're in the early stages but ensuring that that's a success. We want kids uh to want to be a part of that. um we want that to be something that uh they thrive in

022and is a good thing. So making sure that's successful is a is a is a priority. And then lastly, compensation. That's this will always probably be on the list. Um we've talked about pay for certain positions, but overall compensation. You know, you've seen inflation the last few years is has really hit us all um at home and so always front of mind uh for our superintendent and board um as well. So, any questions about the list of priorities that uh that we put together here? >> Feel free to give put on that as we go throughout the uh the presentation. These are some of the specifics related to compensation we wanted to share to kind of give you an idea of some of the things that um went into the proposed budget. We took the

023life skills and behavior paras and moved them up a pay grade. So that's um you know that's that's something that's uh a great deal for them you know um and again they they're not paid enough even now. So certified teachers will see an increase of 1% of midpoint. That's um across the board with a few exceptions. Um we had starting pay increase about $250 um up from 70 572 uh 750. And then, as you know, this is going to be the second year of House Bill Two with the 2500 and $5,000 raises for teachers with three years or more or five years or more. Right? I know that's a mouthful. So the reason we had to make a distinction here and we couldn't just do across the board raises is because as those steps as

024those teachers move up, we wanted to make sure that um it made sense that somebody was on year three next year and somebody that was already, you know, new a new year three person from outside and and somebody that that rolled up to their third year um were in line. And so we had to do a little bit of tweaking there um to make sure it made sense in terms of our salary schedule. And then for all other staff except for DOI, they have their own they got their own part of the comp plan, their own compensation. Uh and uh and their their their carrot is getting to the end and becoming a full-fledged teacher um as always. But everyone else um would get a 1% of midpoint raise, right? So all the depending on

025where you are and what schedule you're on, every every schedule has a midpoint, right? And we're keying off of that. everybody would shift up on their you know particular scale uh equally. So we say 1% of midpoint that's what we mean. >> Yeah. Call >> this a compensation example going forward here. Um with this particular example does that assume no growth and revenue with this example or no fund balance? >> This was these things were um baked into our balanced budget. the first scenario. When we get to that, I'll I'll kind of circle back to your question and make sure that we're on the same page. Yeah. >> Well, let me see. Let me add it up here. Um because the total the total raises were 1.1. I didn't break out just teacher raises specifically.

026>> So, that's something I can give you. I apologize. Um overall, it's 1.1. The life skills and behavior pairs. Um do you have that number handy? about 110. >> 110. Yeah, I was going to say low hundreds. Um, so yeah, that's those are built into the current year budget. Um, and of course, you know, these are decisions that, you know, you guys can can um chew on tonight, give us some guidance and uh and see what your priorities are. But we'll get to a little bit more of the of the bottom line, if you will, the price tag on some of these things um coming up here soon. Okay. So, we wanted you to guys mostly to see what teachers those early teacher steps look like because we don't want anybody say, "Well, you said

027$631 and it's more or less." I just didn't want to um trying to be as transparent as possible um not only for the board, but also for the community and staff. So, okay, moving forward, these key projections, no big surprises here um with enrollment in particular. We've talked about that um at length. Gonna we're going to continue to target 94% attendance. That's something that we've made some made some ground on and um is a is a good thing. Let's talk about special education funding for a second. So, there's a lot of moving parts here. um they're moving to an entirely new model for uh funding special education right and reporting on um and on all the uh students and their services. So the previous model was a placementbased model more or less. Are you in

028the life schools classroom? Are you in regular ed classroom? Are you over here in the speech receiving speech services? Those kind of things like basically where you were as opposed to what you were doing, what services you were receiving, right? So when they talk about an intensity based model, they might view speech as lowest intensity, right? Um and I think there's eight. if that's intensity level one all the way to residential placement, right? So, somebody with severe um special education needs um would be in a different intensity based model um or intensity level. So, the kicker is we're going to have to report both the old model and the new model come this fall. I apologize sir, my condolences. Um thankfully they moved snapshot up. So we just lost about three weeks and uh and

029the reason they're going to do that is they need they don't have a model for taking the money they allocated for special education and distributing it. So they're going to capture all this data based on how we're doing it where these kids are being served. I mean, not where, how they're being served, and then come up with a formula on the fly and we'll find out how much we get of this $250 million pot after the year's over. That sounds amazing. So, because the overall pot is 4% in is a 4% increase, we're estimating 4%. We're all looking at each other trying to figure out, are we going to come out, you know, is our piece of the pie going to be bigger than our proportional share, smaller? You know, right now I think 4%

030is conservative, but it's just a big unknown. I mean, um, that's $600,000 for our budget. So, it's not nothing, and it's an important, um, it's important set aside, and it's a good thing, right? But it's the strangest thing not to know until the year is over. So, we're going to be very diligent to report every kid, every every service provided um, and get our share and report to back to the board later. But um um it was one of the highlights of flow through funding funding we actually got um under House Bill 2. So um unfortunately it's it's very complicated and a little bit of a mystery which you'll kind of be a theme here throughout the evening. Any questions about that? >> Yeah, I've got >> Yes, ma'am. >> on this new intent on

031the new model different model. I'm going to assume you all have got training on how to identify the students and the and and well how to identify them, how to document them and >> I'm assuming that we are very diligent about that, right? Um >> okay, >> specifically Derek could speak to that or maybe Jennifer, but um this is this is a big change. So, anytime I'll give TA credit for this, anytime there's a change this big, >> if they have the guidance in the, you know, in the training materials, sometimes it's a little late, later than you would like, but um if they want us to report this by what, October 3rd, >> there's a lot to be done between now and October 3rd. Um, so we'll I mean, we'll see what it how

032it rolls out, but um just put those guys in your prayers. It's going to be a a tough start to school. What would be the additional is there any >> are we going to have to upgrade any of equipment that we're capturing this data are we going to are we talking more manh hours and definitely more man I mean at maybe at the very beginning or is this >> I'll tell you what I'm hearing and I can't speak for you know there boots on the ground I'll let her speak as well but um the sheer manh hours to report it both ways and the number of kids think about how many different students you have that are enrolled in special education Right. Um, it's it's a lot. If you spend 10 minutes on each student

033and you do the math, I mean, it's it's going to be significant. I don't know. And this is the year they moved up the deadline as well. So, it's more to do with less time. So, it's significant manh hours. >> Are we talking how how will we pay the overtime for the personnel involved? I mean, are they exempt, non-exempt? You just kind of give them the whole week. It's a mixed bag. Most of the leadership is exempt. Um, so it's not as as much a factor of overtime, but >> you know, um, we might have to flex their schedule. Might have to I mean, ultimately it's like the audit or the budget or anything else that we have due, you know, you burn the midnight oil and you get it done. Um, >> exactly. >>

034I don't think we've worked out the the reality of that yet. Isn't this we've had partnerships in the past with maybe some graduate programs. Do we still have those available to help with and assist with this process? >> That I couldn't answer. >> I think there's two lenses that we're looking at here. One is our same processes and procedures that we've had for identifying for serving our kids. None of that changes. We've got great people that we train up that do everything from the assessments to determine their interventions and all of that. I think with all of this, the unknown that comes into play is how we're going to report it in the system. And so, it's really hard for us to say at this moment, you know, how many hours that could be, how

035intensive this is. We've got things where we can mass upload data in there, but it's hard to really know until they tell us exactly what that looks like. So once that happens, then we can make some determinations because we've got people that are really good and skyward and we've got people within our special programs, but we've just got to see what the state wants us to do and then we can determine how best we can get it done because that's what we're that's what we're really good at is determining how best can we get this done and get it in the system the right way because it does impact our funding. >> The data is there, the reporting, the process, the data is the data is there. It's just the unknown is what format the

036state >> what format because they add >> you need to turn it in >> they add new things in >> it's gonna take the time right the data entry >> uh spreadsheets things like that >> but it will be a little bit a little bit it'll be a lot more difficult because whereas before you might have documented that we have 10 students in this life skills classroom >> now you're going to have to say for student a 10 minutes was this 15 minutes was this 30 minutes was this we require hired this equipment. It's for every single student in every that's in whatever placement they are, whether it's resource, you know, inclusion, life skills, all of that's going to have to be done. So that's the intensity. So there will be all the old data

037that we are used to gathering every year into one system. all this new intensity of service data. We know how we're serving the kids, but documenting it in that way and uploading all that data, that's not something that we've been asked to do in the past. >> Yes. Even like the data they needed to to pay out the teacher retention a lotment, the 2500 and 5,000 wasn't that many fields, but it was a significant change. I mean the software changes, the training to sure you're doing it right, the accountability that it's just another submission, another deadline for Chris and his staff and it affects everything. So um I definitely want you guys to be aware of that because um you know it's going to be a a big thing for this year. So anything else?

038Any other questions about um the assumptions key projections? Okay. So, areas to watch. This is um no secret, but the introduction of uh these education savings accounts, aka vouchers for the first time in um Texas history here, um is going to impact us all. And we're all trying to figure out to what extent, right? How do we all come out u in the wash on that? So, one of the things that they released, I've been tracking the number of applicants of folks that students that live in in Bashrop ISTD. Last count, that number is 543. What's more interesting is that without a lot of fanfare, they they included a second piece of data. Um, in recent days, the number of applications of students who were actually in our school system, right? Okay. And that's something

039that was definitely um we knew you know we didn't think it was 543 um is 120 23 applications and indications are that was for students from 24 25. So that's very interesting u data point that we want to watch. Now that doesn't mean that that might mean that zero of those applications are approved. It doesn't mean your application has necessarily made the cut and we'll talk about that here in a second. It just means that of all the applications, 123 previously attended here. So, um this gets back to what what applications have been approved. So, you'll you're starting to see new stories come out. Um parents are being notified um of of who has been awarded those dollars. Most of the applications that have been awarded so far from tier one, right? The special education

040students, right? They were at the top of the list, priority list. We talked a lot about the priority tiers before. Um it starts with special education of course then the rest are mostly socioeconomic right from you know those with the most resources or least resources to the most um compared to the poverty level. So tier one with their siblings, right? Because so if you're approved, your siblings are approved. That was the lion share of what's made up the approved applications and most of the um the 1 billion dollar aotment. They're getting a little bit into tier 2, I think. Um should see something released here soon. Um and that's those students that are based on socioeconomics. They make less than 200% of the poverty level, right? So, um, that's where it starts. And so, um,

041I want to say that might be somewhere around $80,000, but don't hold me to that. Um, so that's where we're at now. So, um, and then we start to look at preK and kindergarten. Um, a number a large number of the applications, probably the the leading the pack is preK and kindergarten, right? And that makes sense. parents want to start off their kids, you know, at a wherever private school, home school, whatever they applied for. Um, so we're going to be watching closely what our prek numbers and kindergarten numbers um look like moving forward. And it's not so much that one of our parents, you know, that we had in pre-K or kindergarten moves or, you know, goes to a private school. It's also, you know, the potential loss. Folks that might have attended our

042prek and started in our system that, you know, we'll never capture because they chose to maybe take their kids to work in Austin and and stop by, you know, somewhere off the the toll road and and go to a private school or a pre-K center. So, for me, I thought that was an interesting thing to watch. um you know the proliferation of of um offerings at the the lowest uh levels. The virtual pilot, we've talked a lot about this so far. Um rightfully so. It is a it is a significant priority for us because and I think you'll see this play out across the state. I'm hearing a lot of districts um looking at this as well for the same reasons, which is just like when districts started considering open enrollment, it was to compete

043for kids, right? Because we're f our funding that we receive is based on our students. We built schools for students, we staffed, we we do all these things um for our kids and then, you know, they go next door and we have to either you know, we're Austin and we have to shutter campuses or we have to adjust accordingly because we're losing kids. um you know, they're uh filtering out. So, we're going to start a pilot with up to 200 students um you know, this next this next uh school year. Um interesting to see how that goes. We've we've opened it up, starting to get applications. So, it's been a little slow so far. Um and hoping by the deadline that we we fill up that cap and and um and make this a successful

044launch. Now, one of the things we don't know is um by the end, how much of it will be internal versus external demand? Essentially, how many kids of our own that are in our currently in our ISD and in a traditional school are going to want to go virtual um versus those that are outside that maybe they go to Hallsville online school or, you know, um you know, College Station or one of these other schools um uh you know, around Kilgore and and and all over the place that have these offerings. um that uh maybe they're you know they have some connection here. Maybe they used to attend here. Maybe they want to play you know they want to be a part of what we have going on. So that's something really critical to watch

045given that we don't know exactly how this plays out. Staffing is going to be a little bit of a a little bit of guesswork there. We might want to make sure that um as we enroll those students and we we know what that looks like. We're going to staff accordingly. So we may come back with an update um in future months about that. Couple other things, attendance reporting. This is a new this is new territory for TEA as well, especially at this at this scope and at this level, right? If they have a thousand school districts um go out and and and create a virtual program at some point, there's going to have to be pretty robust accounting procedures, right? We have a student accounting handbook now that's, you know, that could uh it could

046break your ankle if you've dropped it on your foot. But, um, we don't have those kind of we don't have that kind of guidance yet for for what it looks like. How do you take attendance for a kid that might only be here part of the day? And what does that what is how does that differ from a traditional model? And then if there are any funding differences, and I don't know that there are, um, what does that look like? How are we going to fund these kids? Right? So there's a lot of there's a lot of this to be developed, right? We're kind of at the the start of um you know kind of a very um small piece of the pie, small piece of the landscape that I think is going to change

047quite a bit um in coming years. So any questions about that? >> I was when when you said that there's a this is all new. This is you know a lot of unknowns. I thought the virtual learning has and maybe Priscilla can add to this. I thought this was something that other districts have done. So, I mean, yes, it's still new, but t why hasn't TEA >> got hold of it and said this is how you know, hey, this is how we're going to fund it. This is how the attendance is it. >> So, I think you have for me, this is me speaking, thousand foot view. If you if you zoom out this the proliferation proliferation of this basically around COVID right had some offerings including the community that I came from they they

048they were in there um postcoid and they were grandfathered in and they were I'll say a small subset of districts I think less than 10 it's pretty small um you know we we use those examples um because there's not that many of them so if you go from 10 to 500 or a thousand Um, and it's not those few that are grandfathered in that have this, you know, that have their own system. You start, the scale is just going to be so different. Um, so it's not brand new as a as a offering. It was just so limited and it's about to be so uh widespread and um, you know, I'd say it's still relatively in its infancy. >> So the legislators didn't think about this might expand. >> I don't think they thought about

049what's coming. No. Okay. Um, >> but it did come out of the legislative session that allowed districts the flexibility to offer virtual schooling. >> They just didn't quite play >> because because of similar to not only for BISD, we want to make different options available to our families. In some respects, it is that we need to make >> different options available to our families. So, but like what you heard with um uh some of the things that we're still waiting on with related to highintensity uh model of funding and we don't know all the rules yet because they haven't put them out. They also haven't put out they've told us that it's coming sometime this summer. We expect how we will be funded for attendance. if there's going to be a time when attendance has

050to be taken. It we think that there's not like they can do it any time during the day, but I won't be surprised if TEA doesn't come and say, "Okay, well, now here are some additional concerns or or rules that you need to follow." >> Okay. I I mean, I realize this is it's not not on your part, not on the district's part of the unknown. It's the guidance that's not being provided. I mean, the landscape is changing quickly. Yeah. >> So, I mean, um, >> we're just trying to adapt like everyone else, you know. >> Um, and I think the advent of school choice >> and, you know, kind of opening up a new hor new horizon with that, I think goes in line with I mean, parents are going to make choices and

051if if this is one of the choices, we want to be we want to be there and we want to compete like we do with everything else. So, it's good questions. All right. So, for for our frame of reference, I'm starting with where we were at last year. I mean, not last year, last month, last week, one of those. Um, a base scenario, 1% pay uh pay increase. This had one officer um did include the transfer in um from the from the uh STARS fund um and was a balanced budget. We also propose a an alternate scenario of 2% of midpoint just for a frame of reference what that would look like. Every 1%'s about $1.1 million. This this holds everything else constant. So that's just A and B with that being the only difference.

052We have some scenarios to talk about here in a second that um would change that. And so rather than have ABCD, you know, a whole slew of them, we're just going to talk about some some ideas and some costs and then together we can kind of develop what might be an alternate scenario or maybe we'll coales around one of the ones on the last slide. But if you'll just let me get through this this next part, I think you'll see where we're going with this. So, one of the things we want to talk about um to start um more of a board discussion or allow you know a focus to be on where we go from here uh based on board's input wanted to list um the strategic priorities front and center. These are things

053that have kind of led us um and been front and center for us uh really with everything we do. But um you'll see they all kind of um you know weave themselves in nicely with some of the the staffing choices we've made and and safety and security and the the students with special needs. Um that that you know of course goes to our culture and our collaborative practices across the district and of course student success and well-being being at the front the forefront of all those decisions. So moving forward from there, I want to talk about fund balance. We currently have 4.2 months of fund balance. Right? We presented a budget scenario as as directed. Um and I think as the board's expected, it's been our standard over the years is to have a balanced

054budget. Um that's more challenging this year to come to you with that. Um based on the lack of growth, I think I've said it before, but I'll say it again. You guys are are board members on a district that has grown at about 3.4% for 40 years, 50 years. It's almost uncanny how steady the growth has been, right? As rain, like the sun coming up, we've had growth. Well, um I promise I didn't cause it, but when I got here, the growth stopped, right? And so that's a challenge. And that's a challenge you're seeing from some other districts. The glass half full is here. We think it's more of an anomaly, right, with just kind of a a pause to the growth as opposed to a stop. Some of our built out peers, some of

055our, you know, maturing districts, it's never coming back, right? Those campuses that are closing some, those districts that are closing campuses, those districts, those campuses are never probably going to reopen, right? Because they're never going to grow into them. They might repurpose them, but that's a different reality for us, right? So, we're not having those conversations. So, we're at 4.2 months. We know we have some safety and security needs, right? It's why we we've tried to make some progress there by including at least an officer. Our good cause exception plan filed last year calls for adding three officers, right? So from one to three. If we add three, we're going to need to include a sergeant, right? We're going to have to there's only so many folks people can supervise. So it's just it kind

056of goes along with it. So the cost of that as a standalone item is a little over $300,000, right? We know that the teacher scale on the back end particularly you know when I mean back end that from 10 to 20 um it kind of trails behind it's not as competitive right so we wanted to you know bring that forward and as as an idea as well um that cost 125,000 not necessarily to solve that problem but to work towards it right to make progress on becoming more competitive right that would be that would be a little bit of a a longer term uh fix and then adjusting minimum pay rates for our lowest paid paras. You know, to be in 2026 and to have folks that don't even make $15 an hour, you know,

057when BIES and and these other places are in their low 20s, it's very difficult and it's it's something that we always want to bring to the conversation and be mindful of. Um so this is simply taking those folks that are below $15 an hour and bringing them up there. Now, um that, you know, that's the the first of several steps there if we went down that road. Um because then you might have to adjust others, you know, you'd have to do some other um adjustments as well and make sure there's some par between certain pay grades. But for now, step one, if we were to do it, would be $100,000. The reason we brought these three specific numbers to you, um, if we were going to entertain dipping into fund balance, we wanted you to

058have the cost of those kinds of things or anything else that you you wanted to u any other information you needed about that. But this is kind of where the rubber meets the road. It really gets comes down to the the board is going to adopt this budget at the end of the day. This is going to be your budget. It's not going to be Mike's budget, right? Um, or administration's budget. This is one of the few things you're charged with specifically. So, we're trying to balance our charge of a balanced budget and being great stewards of taxpayer dollars, which by the way is all I'm always a fan of that um because you start using fund balance to live off of if you do that for you know it starts to really spiral a

059little bit. So, you have to be really careful. Um Hayes IC is trying to unwind that spiral. they started down that path and and and found one day woke up and their fund balance was very little, right? And so that's exactly what they're doing. So we have to balance that between, you know, with some of the needs we have with, you know, officers maybe being at the front of that list. So I'm going to pause and see what questions you might have or what input might you might have for administration um as we move forward and we look at adopting this budget here in a couple months. Mike, um, our fund balance, it's part of our investment pool, isn't it? And it's earning interest. >> Most of it's in investment pools. Yes. >> So, three

060to four percent. It's earning at this point. >> Yeah. These days is about 3.6%. >> Okay. Um, >> it's about $2 million in interest revenue that we that is in our budget. >> That's just from our fund balance portion or is that okay? >> Yeah. And so this 530,000 roughly would for one on our fund balance were recommended to be how many months? Three and a half. Three. >> Well, TEA the standard they use for the first rating is at least three. >> Three. So if we take half a million out or 530,000, that puts us at what? 4.1 months, four months. >> Yeah. It wouldn't it wouldn't make a big difference in in in that number for now. Yeah. Um I can give you the exact calculation here in a second when I I

061can do some quick math. Um >> now you said that the that the interest being earned on the investment that's already been included in the >> Yes. Our invest Yeah. And it always has been. So um >> now not the money that not bond funds or debt service or anything but just a general fund. Yeah, we have a healthy fund balance and one of the >> you know the extra rewards the cherry on top is you earn more interest on that right but you have to be careful on living off of it because right >> when I was at Highland Park it it ran up from 100,000 to 2.2 million back to 100,000 in two years. So >> um you know uh but it's settled in. It's pretty it got as high as oh a

062couple years ago it was over 5%. That's pretty much the highest I've ever seen. Um but it's settled in at the upper threes. So um and we have increased fund balance quite a bit in the last two fiscal years. So that's it's a different story. 24 months ago, you know, we're probably at I don't know three months. I have to go back and look. But um so yeah, the the real discussion is how do we balance these needs against a fund balance knowing that um while this year was difficult, next year is going to be more difficult, right? Um, barring any windfall from the legislative session, which I will I will say my counsel to you is I've never seen them go back to back with significant investments in in public ed funding. Typically, they've

063kind of act as though they've scratched that itch. They've dealt that they've and then we, you know, expect us to go away for a while. Well, what they did this last session didn't even get us close to where we were before COVID. So, it's not as simple as that. And that's why districts are still struggling even with the infusion. Half of it went to teachers, rightly so. Great thing, but but $4 billion did not touch uh the needs or that exists across the state. Yes, ma'am. >> Hey, Mike. Um what is our total budget for safety and security without this additional 304,000? Are we still at like this 3 million? Can I grab my computer since this is a workshop anyways? >> I can give you that number if I can describe. >> Oh, yay.

064>> Yeah. And I >> I have I have prior year and current, but I don't I don't know if it's changed much. >> Yeah. I want to say it's two two and a half millionish, but if you give me a second, I can have all the answers to these questions. >> And I had some questions last couple days on this good cause exemption plan filed. Chief, correct me here. We currently have 21 officers Uh we have two control. >> Okay. But but to to satisfy the plan, we need 30. >> So we're adding three. We're still not to 30. Just to give example why this is a a suggestion, these three things all go towards payroll >> coming out of fund balance. All three. Um but just a thought there too. >> We're used to

065I think we're used to um referring to the shortfall on funding for safety and security, but the overall budget is closer to 3.1 million. We do get for the sake of full disclosure, we do get 7 to $800,000 in safety and security money. They have put a little bit of money into that, but of course our costs have gone up, you know, to staff at the level we're staffing at to meet the requirements um significantly more than that. So, so 3.1 million um little under 10 10%. >> Okay. And then there were two categories I wanted to ask you about as well. >> Sure. >> So, our guidance counseling and evaluation services as well as social work services. Those two categories are lower in the current year in some terms of budget. What do you

066project for those two categories for counseling and social worker? Social work. >> And what are you looking for? So I'm looking at your general fund expenditures, >> the monthly financial statement. >> Yeah. >> Okay. Let me >> And so the final budget is listed here for prior year >> and then um so yes. So what what are we making any adjustments to those >> positions? I wasn't here. I wasn't here for the prior year. I will say a couple things were going on. We were doing some budget corrections. Some of the FTEEs we had previously weren't always correctly budgeted in the right spot and and things like social workers and counselors are tricky because because especially coming out of ESSER funding and other things they could easily and might have been coded to a special

067they might have been there but coded differently. They might have been in a grant or an esser and so it's kind of difficult to always compare apples to apples because you guys are only seeing the general fund view. So if it was previously coded elsewhere, it might look new or if it was or vice versa. You see what I'm saying? >> We Okay. So I guess for Diana, we don't have any change in FTE for those positions or are we taking anything away from those >> from social workers? No. And then we actually added some counseling services to the middle schools. >> And we're not adding any any other mental health supports at all like social workers or Okay. So no. Okay. Thank you. So Mike, on this use of the fund balance, you had

068a couple of slides before you had the two um the 1% and the and the 2%. Where does this 500,000 fall into play >> or it doesn't? So I wanted to give that as a a baseline. >> Okay, >> scenario A and B. And then off to the side, what we're calling a menu of choices, right? I didn't want to have too many scenarios, right? So, you could take either one of those depending on what your feeling was about compensation and then the 300, the 125, and the 100 as um possibilities. But yeah, you would add those numbers to the desk >> to those. Okay. >> Um that that 304 is above and beyond the extra officers, not the one doesn't include the one that we already had in there, >> right? Okay. So, >>

069or the whole 500,000. >> No, this is all extra. This is all above and beyond that. So, >> and some change. Okay. >> Yeah. Mike, the the uh for the three officers when we talk about that number, >> that's strictly payroll or does that include equipment and that kind of stuff as well? >> That's a good question because it the price tag would be higher, right? Um, if we know, I'll say this. If I know that this is the direction we're going to go and it's going to be in the proposed budget, we're going to work together really quickly to go procure the vehicles and the vests and the the guns and the all the accutraone, if you will, that an officer needs. We're going to try to get that by 6:30 so I can

070put it in this year's budget, right? Because next year is going to be leaner than this year. I'd rather go ahead and pull those expenses forward, receive on them so I can take off some of the burden because that first year of adding those those U positions, there's a lot of other non-personnel costs that go along with it. So that yeah, I appreciate you touching upon that. So >> add something about safety and security that uh Chief and Mike and I were talking about just today. So there is also um a new proposed rule I guess that we would call it um that districts would be required to have a peace officer at any extracurricular activity or any school event that had 500 people in attendance. And it's recommended if there or I'm sorry I

071I should say it's suggested that you even have them even if there's 250. So it's unclear whether extracurricular means a UIL type of an event like a game or a fine arts competition but the language is also school event. So that could be math and science night at an elementary school. Also, TEA has said that it won't cost the state any more money, but it will cost districts more money, but districts can use the safety and security aotment that they were given out of the last legislative session. Well, as Mike just reported, we've already used that money because we spend 3.1 million, which is well beyond what the state provides. So, this is going to be not only additional expense, but there are going to be additional offers there's needed to cover all of these

072events if this rule goes forward. And we're hearing that they feel confident that it will go forward. Um there's an opportunity for us to testify May the 4th. And um we will probably uh some of us go and testify, not necessarily to say we we have officers at lots of these events anyway, right? We choose to do that, but um to mandate it and not fund it. Fine to do it, but fund it. >> I will say this is that when you say that, Dr. Lee, I just about any event I have gone to, >> an officer has been there. Yes. >> And it's just the interactions that our officers have with the kids and the programs um is incredible. and and creates a good foundation for those kids. Um, and these officers, you know,

073um, and so I I like the ideal I I do not like the ideal being an unfunded mandate, but I do appreciate what's going on now. >> Absolutely. >> And Chief, do do all officers have to have a vehicle? >> They can't they can't drive their personal vehicle to a campus if they're working that campus for the day and then go home. The downside that would be is if they have an arrest and we have to pull somebody from somewhere else. The other part is our our vehicles, we buy them used. And so it's really we keep them for about 10 years. So when you look at it, you advertise our vehicles, we have about 6,000 of them per year. Um and it's also to me, I'll just be very upfront, it's a billboard that

074sits out front, right, >> that says we're here. >> And so I just see it as that. Gotcha. that was it doesn't necessarily have to be our event. It could be somebody that you know um is using our facilities or it could be anything. It doesn't stipulate um you know if there's um somebody has their own prom, you know, at the pack or they have a competition or they're at little little dribblers or something. Hitting 500 is not hard as you know. uh especially 250. So it's just we're wary of the cost, you know, and of course, you know, that's a number of events there his staff would have to cover. So um and they're already spread thin. So >> your scenario too on the budget with the 2% increase that that extra percent from

075one to two would have to come out of fund balance also. >> This scenario, >> this 1.1 would come out on top of these other three >> if you went with 2%. >> That holds those other ideas off to the side. That 1.1 would be deficit. Um, and that is with the transfer in of the $ 1.9 million and $2.4 million um uh onetime uh uh infusion from a a prior tax year that we audited 2022 and and we're getting um you know a nice little amount there, but I can't it's not something I can count on in the future. So to say that that balanced budget there is is kind of I mean it's propped up a little bit with some things that are going in our favor and I just always want to

076be completely transparent with you guys so you know kind of um everything that I know about what it went into this and so um you know whatever decisions we make this year I just caution you come next year we'll that will be the starting point for the same discussion next year when we don't have those funds and I know you I know what your expectations are I know you know the charge you've given us and we We just want to make sure you have almost like a two-year view uh of our budgetary outlook. >> So, um >> you're you're saying that the one point 1 1.9 million is a one time >> Yes, ma'am. That's that's the that's the uh >> the refunds or >> non-committed fund balance. I mean, I think there's some assets

077that make up the rest of the fund balance, but that's the cash >> one point. It happens to be the amount of our deficit. um >> um very close to it. So yeah, that's uh I wish that I had that. I wish there was an annual transfer I could make, but unfortunately there's not enough but to do it the one time. >> And also this this 1% of the midpoint pay increase. Um this will be the first year we haven't contributed or put back to our fund balance. the 1% you said will >> no I mean just this year this this coming up I mean in in 26 >> right >> uh 25 26 we're not going to put any money back into fund balance at the end of the >> so the year we're

078currently in now okay um you know I think we'll I think it's going to be about break even if I'm honest with you we lost and that's with budgeting for 400 kids that we never had so right off the top we'd lose $4 million but counting you know vacancies that didn't get filled and and and being as lean as we can. Um I think with um we don't spend every dollar that's budgeted. I mean people those little pieces add up and so my projection is it'll be about break even which is glass half full considering we lost 400. >> Yeah. And just just a little institutional notch for Miss Armstrong and and Priscilla and and Josh and and probably Chris as well. I know with Kelly and and Mix, but we I think we started

079possibly over nine years ago. I may be off on that number by one or two years, but trying to rebuild back up the fund balance. So, we were very disciplined, working very hard to get it to where we needed it to be in order for for one to be able to to go out for bonds, for constructions, things like that, but also get to that three months or whatever the number they said. So, it's nice to know that that we are past that. So nice to know that there is some availability there. But but you're right, we don't want to start a domino effect of being like other schools and you know start bleeding the drive. >> Yeah. Doing some quick math here. Yeah. About about 12 million about 11.8 million per month of operating

080expenditures. So we have $50 million in fund balance. So, just give you some perspective about what one month of fund balance is at at our current level is is about $12 million. Um, so these don't seem like huge numbers when you compare that, but one here's what happens. Negative one becomes negative4 becomes negative9. It kind of it kind of gets a little exponential. um it doesn't just go one one one you know it doesn't it's typically not how it goes because you know you give raises and then next year you give the raise on the raised amount and then you're you know it's like that it's how the math works so um >> but I I want to go back to something that you said earlier Mike we do anticipate that this year and next

081year uh and and our demographers kind of uh uh verified this for us that this is what they're anticip anticipating also that these are the couple of lean years and then we're expected to start growing again and um you know we're seeing lots of development still continuing to happen in the city and in the county heard about more of it today um so we do think that this is a short term so I don't anticipate that we're going to every year be having to pull money out of fund balance >> well even what just some thoughts of what we would if we pulled some out even with giving a 1% raise. I mean, and everything, like we said, is going towards compensation. We're not going backwards having to hold it the same. We're not having

082to cut positions. Um, >> right. >> You know, and >> I mean, the only positions we cut, we're balancing teaching FTE based on student numbers. I don't view that as a cut. Um, you know, actually added a few positions, you know, that were based on need. I mean safety, security, sped, a few operations, but um >> yeah. >> So my I guess you can go and teach our students now a class about compounding interest and how my investment if it compounds will double in 10 years and that kind of thing as well, right? >> Yeah. Deficits compound too. >> I assume that's what you're referring to. Yeah. Yeah. And I to reiterate to really I like exactly what Dr. Dr. Lee said. Um we're weathering the storm, right? Um other folks are staring at a

083barren landscape. That's not what we have. We we have a you know a storm. Storms pass, right? We have all the same indicators that led us to believe we were going to get 480 kids, right? And so this is a little unique and I think in our history we'll get back on track and and it'll get a little simpler simpler to budget with growth. You know, you have additional funds for positions, teachers, resources, programs, raises, you know. Um, and I hate that I'm the the first guy that gets up here and um, you know, or I know in recent years it's been tough, but um, I think it's just I think we we've set ourselves up in a good situation, this board with with your leadership over the last five years or so, maybe going

084all the way back to nine years ago. Um, you guys, I know in around 2017 or so there was a challenge. You know, the the the financials weren't as strong. Our first rating wasn't as strong, but all the indicators since then have been um all green lights and all and all accomplishments that we should be proud of. So, we're weathering the storm better than just about anybody. >> Mike, you mentioned that we had a menu. We got these three items there. >> When I said menu, I just meant >> Are there other things on the menu here or >> anything's on the menu? I was telling Lee earlier, you guys can have anything you want. You just can't have everything you want. And ultimately, I got a $142 million to spend. You just tell me

085how to spend it. That's essentially what you're doing, right? When we make when we approve a budget, >> um it's a list of our priorities. And so, um yeah, your input's helpful on that because you ultimately this is something that we uh we do together and that you uh that you own and and approve. So, I want to be we want to be a resource to you. um in that process. So um I want to make sure all your questions are answered um and that you really understand what our options are. >> Mike, the very last one it says adjusting for the lowest paid pair is the 100k. >> A couple of slides back you we were uh I think one more. Yeah. Uh anyway, you mentioned that we're going to give the pairs that

086jump Are they different? >> They are. >> Are we talking different uh different personnel this last? Okay. Okay. >> The jump for that we're talking about with that 100,000 is to increase our starting pay to 15 and the other is to bump up life skills and behavior one pay grade. >> Okay. Okay. But there's Okay, got it. >> Yeah. I was going to try to um health assistant, teacher assistant, stallers assistant, worker in the daycare at least in 25 26. Those are some of the >> those are some of the pair >> those are some of the examples, okay, >> of those that are under $15 an hour. >> Okay. >> So, um it's our paraprofessional salary range. >> So, if you're looking at our comp plan and you can see that at the top

087it starts with as low as 1407. >> Got it. and we want to work on that. >> But again, that's not a quick fix. That's a that's a long-term commitment. Um multi-year commitment rather. >> Mike, have you looked at um the rate of inflation in our just state of Texas or Austin metro area as well? >> Well, it's a good question. Um it plays a big part in our transportation agreement, right? the the inflation factor there and and what they pulled the latest CPI and I want to say it's based out of I think it's based on the Houston CPI for some reason or maybe that's the I don't know the history of but it was 3% this year so the days of astronomical inflation are probably behind us but you know you got to

088account for that 3% 3% on our transportation agreement is $300,000 right so >> well and 3% inflation with a 2% increase for our teachers doesn't make up the difference for them. >> Oh, no. Yeah. And we're well aware of that. That's And that's what's so shameful about it. Since 2019, across the board, um we've seen inflation close to I think 20% something like that. Um lost about 20 20 or 25% of our purchasing power. That plays out here. That plays out in those teachers homes, you know, with the bills they pay. Um there's no there's no part of this that it doesn't touch. And so um you know I'm hoping those that that got to 2500 and 5,000 that was a that was a definitely a step forward. Unfortunately didn't impact everyone. you know, um

089we did give a I want to say it was 5% for the pair of professionals last year um for certain pay grades um you know not administrators and then otherwise but if you look back at last year it's that's something we committed to as well but still not there still not where we want to be um and those folks make you know the least. So >> Mr. Dylan, you asked earlier about other menu choices. Um, you know, we put uh some money in to adjust those 10 to 20 year teachers, but it's it's working towards adjusting them. If we really adjusted them, it would be I think we were talking today, this is like step one of seven. You know, we're doing 17th of what we would need to do to fully adjust them. It

090would be that 125 time 7 to really fix that that section so that we keep our more experienced or attract our more >> experienced veteran teachers. And the same thing with this $100,000 adjustment. you know that that just gets the paras who aren't making 15 to making 15, but it doesn't include adjusting somebody who's already making 15 who maybe has worked for us for five years and now somebody new is coming in and making 15. So, but it's a start, you know, you it's it's one step, but at some point we would need to fix those other things. Yeah, to give you a frame of reference, um, on the back half of our teacher pay, we're at, I think, 93% of market in some spots. So, if if we give 1% towards that, we got

0917% to go, right? And so, we're we're proposing is is that that's how we got to the 17th. Um, but you know, I'd rather attempt to do some great things and not just be able to do everything we want to do, but make progress than, you know, than otherwise. But again, it comes at a cost. And so that's kind of where we get back to um, you know, what do you guys want to see? I hope to propose a budget in May and then adopt in June. Typically, it's not make changes from that point, right? because you don't want to make changes all the way up to adoption. So, um I'm hoping for for some guidance if possible. Um and we might may not be there yet. We do have May to work through some

092of that. So, I So, um you know, what are your thoughts um you know, on where or what you want to see in May? I'll start. >> Okay. >> Um and then let me just confirm something though. He said our fund balance is about 50 million >> and monthly 11.8 12 million >> annually. Yeah. That's a >> Yes. One month of operating expenditures I said was 11.8 million. >> 11.8. >> Yeah. um to do a 2% and the three items that were listed here. >> It's 17 thereabouts. >> Sure. >> Um that would bring us our fund balance down to 48. >> Sure. >> We're still at four months fund balance at that point. >> I'll do the math real quick for you. Now that I have the computer, >> you have 4.05. >> So,

093and we're at 42 right now. So, we'd lose a little bit on that, but you know, it my guidance, and I can't speak for the entire board. Everybody's going to have their own opinion. Um, but would be to do that because I'm going to have a hard time looking a teacher in the eye saying I can only give you 1%. You know, I mean, >> no knowing inflation is 3%. I mean, what groceries are you not going to buy that month because of that? And >> so my my preference would be to do the 2% with these additional things. >> So basically next year you're going into a 1.6 1.7 deficit on new budget. >> No sir. >> Just we We approve this plus the four. >> Yeah. I want to I want to be

094clear on this. >> Think about think about the budget as a two-year budget for now. Normally, we wouldn't every budget year stands alone. This time, because there's two one-time items that are factoring in that. If it weren't for those, we would have a negative four million negative $44 million budget um this year, right? So, come next year, those go items go away. start atg -4 >> plusgative 1.5 1.6 six. Um, so next year is going to be difficult no matter what. Best case scenario, it's going to be difficult, but I just want you to go eyes wide open. Um, next year's the real storm. >> So say million. >> Okay. What else we stay? >> We start from the very >> Well, I mean, I guess my guidance, I'm just speaking for myself here. This

095is a tough question. >> Put me on the on the hot seat here. My answer to that is if we were starting this school district from scratch, built all the buildings, we're going to open it up tomorrow. What are we going to do? Got to have a superintendent by law. Got to have principles. Got to have teachers. A certain ratio. The ratio can change, but you got to have teachers in classrooms. And you start building from there. Gotta got to have police officers. You know, I I hope that you have to have a CFO. Um but you know every position you have to think about >> you know have to is a relative term you know um by law there's positions you have to have other everything else is really >> these these districts that

096are in this situation you're talking about there's almost nothing that's not off limits >> I just want to bring that up we've had staff cuts and that's tough >> just to be prepared next year >> so >> whatever decisions we make this year I'm not opposed to >> if we go with that 1% increase >> then if I'm understanding correctly then next year >> one we won't be well well and then plus the three the three options. So if we go with this 1% increase plus the three options um so you're looking at then in the following year we'll be down two million >> as opposed to the >> okay so let's say we we appro approved the balanced scenario here plus the five >> what's the number 52 >> 524 525 yeah >> 520

097something >> so we would have a negative $520,000 budget this year >> right that zero plus those items >> got it >> fast forward to next year we'd lose the 1.9 million transfer, we lose $2.4 million. >> So that's we would do a 2.4 versus the four6 million if we go with the 2%. >> No 1.9 plus the 2.4. >> Yeah, >> you got two numbers. >> No, no, it would be 1.9 plus the five. >> Okay. >> Fast forward to next year, you would have the negative 500,000, >> right? Then you would add negative >> 4.3 2.4 million and 1.9 million. >> What's >> I've been calling it four, but it's technic. >> Yeah, Tom, there's two numbers. Even if you do the balance for, >> right? Yeah, >> it would be one point.

098>> Oh. Oh, I thought we were just losing the 1.9. >> No. Yeah, I don't have the 2.4 on here. I apologize because it's not a it typically wouldn't it wouldn't be it wouldn't be listed here, but um our revenue does include it this year. So, I'm making sure that you guys understand that may maybe it would make it more sense if I for May if I had a revenue breakout. But yes, those two items go away. >> You're looking about 48. >> Yes, that's what I think balance for security the 500 something thousand. >> Yeah, >> it's 43 to start going in. one at a 1% raise, we'll be going in a 4.8%. >> Yeah. 4.8 million. >> 4.8 million >> versus the versus the six. >> The two, then we can add another

0991.1 million. >> Yeah. >> On top of the 4.8. >> Yeah. It's all Exactly. That's how the math works. It's just what combination of these things are you comfortable with? Um, and I don't want you to come 12 months from now and and and look at me and say, "Mike, how did we get here?" Or, you know, what happened? And I just >> when was >> you know the glass half full if it weren't for those things that went our way and some of them are relatively recent like both of those developed in the last 60 days probably early on in this in this budget cycle it was it was rough and we started we called staff together and we're have to kind of things only bare minimum it's going to be a really tough

100year in a way we had some things go our way and we could get to balance without making the kind of cuts that we might look at for next year >> and on that possible possible 4.8 If we give a 1% increase next year, we'll be adding another open another elementary the cost of that >> possibly. >> That's something that's >> Well, I mean, regardless, you're you're from >> I guess my concern is dipping into that fund balance and knowing that other districts have dipped into it and it's a spiral, it's easy to all of a sudden it's we're down to one month. That is only my concern. I I'm with Mr. Dylan. I would love to give them a 2% but you know you're in the whole six got a new school coming in

101in you're now you're in the whole 10 12 I >> I'm going to I'm I'm going to just >> and I get to this year start next year >> when was over the last 10 years what what have we given as far as percentages for raises >> do do you know like I mean >> I don't have that history um I could put it together. >> Okay. I'd just like to see because I know that we typically go between three and 5%, hasn't it? >> No, it it's been between between 1 and a half and 3%. But there have been a couple of years that I can think of right now. I think last year when we gave our pair professionals 5% and I believe there was one other year where there were there was

102a class of employee that got either seven or 11%. We were really trying to jump. It was pair professionals but really trying to jump significantly. Um but we could easily put that together and >> throw that in that Friday. >> The big the only unfortunately big help is big money dollars come from the state >> right next year. >> I'm glad and keep in mind I'm not talking about any new state dollars. There might be we might skip millions >> just I mean you know our company didn't the company that I work for didn't give raises this year because it's just not feasible. So I I'm and and and I hate looking at a teacher and saying, "No, I can't we can't give you a raise." But it's a fact of life that across the

103board the the economy is down. It's bad. And we even in corporate we're not giving raises. So I I don't you know that's >> Yeah. >> And I I would just >> all fair points. I I would just hate to think again, yes, the students are our main concern, but we've got to look at the taxpayers. And if and and we are responsible to be good stewards of our budget. And I know it's easy. We we we have this nice little pot of gold over here to start just >> point me in the direction. >> Yeah. To start just drawing down. And I'm afraid in a couple of years >> or you know give it two years or so I I'm I I just I prefer not to dip into the fund balance that much.

104>> Do you foresee anything being different from May from like now until you know the days to of what you're presenting now? >> So June we got >> or June from June I'm sorry. >> Oh between now and and you having to make a decision. >> No. I mean, there might be minor adjustments, but I can't think of the student number isn't going to change. Um, we're not going to get any >> I mean, it's not there's no funding coming from the state that we're of. We might get a we could get a grant maybe. >> Um, >> what are those worth? Is that what are the virtual students worth to us? Like two million >> 200 virtual students. >> Yeah. Over two million. >> 2. >> Would we know that number before then? We

105have some application. Yeah. And there's a lot of unknowns there. I mean, I I'll give you a yes with a aster that says I would think so. >> But I would love to. >> No, I know. I'm just saying if all the stars lined up and it was like a good question would get to add to this year's budget. >> So, it's a good question that he asked that I want to hone in on. Um, what have we factored in on the virtual funding or, you know, the let's say the $2 million right now? Um, we're kind of holding it as a as a as a break even. If we get 200 kids and we have additional funding and they don't count, see, if there 200 new kids to us, if we just take 200

106kids and they move over to the side, um, that's different, right? So, I don't know the staffing level yet. I don't know how many kids are going to be. I don't know how many of them are our own. But, so that that's a good segue. That's probably the one thing that may change the most between now and June is we'll have a clear picture of the revenue and the staffing based on the information we have available. >> Does this address the 123 that have filed for vouchers? >> No, I mean I don't know. Um they were there in 23. I don't even know if they're with us now. Um now we we already lose some kids. It's tricky because we're losing kids every day and we're gaining kids every day. So kids that were here

107last year have applied. Are they unless they're special education, they're probably not going to get a a voucher. So um >> I I don't know. >> You know, it's it's very difficult. I agree with Dr. Lee on the the growth projection side of it, you know, because we're not we're not seeing much slowdown on the outside world, right? Like the non-school component. So, you know, it's it's it's just, you know, I wish we had the crystal ball. You know, we could see what the growth is going to be like because on the outside world, we're seeing it. It's happening right now constantly more so than it was last year. And so, that's why it's odd for the numbers, you know, the way they are. >> And that's why it's so challenging to tell you why

108that's happening because it doesn't make sense. Obviously, ex the foremost experts in the state can't tell you exactly why, right? and they're surprised as well and they do this for a living. So, don't feel bad that, you know, I don't feel bad because nobody can figure it out. But I know our our student drop off did stop this month. I'm hoping that's a trend. But the these people that put millions and millions into these neighborhoods and these vacant developed lots and putting in infrastructure, they're not going to they're not going to walk away. They're on pause, right? They've made investments. They're not they're going to finish those neighborhoods. and we have a lot of them more so than almost anybody out there. So, um I want to just >> don't know but would help us

109next year. You know, our goal for attendance has been 94%. >> We got 95%. >> That'd be great. That's additional revenue. We got 96% that'd be amazing. So this idea of uh encouraging uh students to come to school, encouraging parents to get their kids to school, barring you know illness of course but um it it means something you know to us as a school district not only to meet our academic achievement goals which are high but also uh to simply operate as an organization. Um, >> before I lose you, I do want to say that there are two more slides. We haven't talked about child nutrition and debt service. I'm going to go through them really quickly, then we can come back to the greater topic. Um, I just want to make sure I don't

110I don't forget to touch upon it. Child nutrition fund. This is the first year that we've operated inhouse for for some time. Currently projecting to break even. Um, you've been if you've been watching our month-to-month, it's very encouraging. Kudos to Rachel um and Lee and the whole operations department. That's been, you know, financially that's my that's my lens. Um great food as well, but financially it's been great. Um I can speak to that. Um you know, staffing has been efficient, food costs have have been um well managed. Um and that's with some investment in in equipment and some of our cafeterias. So looking at the same for next year and including um a couple of new positions that we kind of held off on this year and that are in the new year budget, right?

111Um and then lastly, this is maybe the biggest ray of sunshine I have as these things go. We got our preliminary values from the CAD uh last week. Talked about this at the board meeting. I think I got them right before I walked in here when I did a number uh a year-over-year comparison. Uh, and I apologize for the sunlight if if you're trying to read that. It's 10%. Um, preliminary versus last year certified. So, um, that is very encouraging. That is we are kind of an anomaly from what I'm hearing anecdotally. We don't rely on rooftops quite to the extent that some districts do, right? We have um some diversification, you know, some corporations, commercial values, retail, and once I have the breakdown later on in this process, I'll be able to tell you

112where the the growth is really coming from. But that is that's a great piece of news. I'm going to be watching um be calculating the debt service rate later. We've issued all our bonds. Um that that's just a strong that's a strong showing for our community right there. So, I apologize. So, any questions about that? Um, it is one of your funds that you approve. So, when I talk about the budget, I'm talking about food service and debt service as well. So, >> food service what about $9 million budget? >> No sir, it's over it's the the approved budget's like 11. >> Okay. >> But I think it will end up probably about break even about low 10 million. 10.3 plus or minus if I'm remembering the numbers. That's where I project us to settle

113out at. Of course, we had no frame of reference, right? >> Because we we exited with a partner. They don't give us a, you know, their financials. So, I didn't really know what the true costs are, but it's been managed well. I was I was, you know, I was a little wary and um I'm glad to say that it's it's turned out pretty well. >> So, um, >> one thing I don't want to get lost on my certified values, Yes, sir. going up 10%. Um, that doesn't mean we get more money. >> No, on the M side, that's more I know that, but but people watching this meeting may not say, "Hey, you're getting 10% more." And that's not the way that works. >> Great. You set me up just like we talked about on

114the M on the M side, our local tax revenues will go up and our state values holding everything else constant, our state revenues will go down. So yeah, we don't really more or less we don't really benefit from that, but to be clear, the debt service fund does. So as our tax base goes up, our ability to pay debt um does go up. And so um you know, this is just preliminary. These aren't certified. So come um late July, we'll get uh some hard numbers, but um it'll probably be at or a little lower than that number. So great territory to be in um for you know the our future tax base and our ability to build schools. So here we are um you know I've been updating you this weekly on on the process

115um and really the the most formal the biggest formal steps we have left are for June related to the budget. We got to publish in the paper do a you know um a notice have a public hearing um and then of course adopt it. But going back to here, um, yeah, we heard from everybody in terms of input. What are your thoughts on, um, on where we go from here? >> Mike, I just want to be clear. Um, so on the use of fund balance slide where you have the currently 4.2 months and then you have the three bullets, good cause, exception, adjusting, >> uh, years of experience, and then minimum pay grade. That full 529,000 is reflected in that final slide or it is not. >> No. >> Okay. >> That slide was last

116where we were last week. We had one officer. This is with four officers. >> I mean two and a sergeant but four FTEEs instead of one. >> Adjusting the teacher scale 125,000 and adjusting the pair of pay 100. So this would be in addition to >> and so that said if we did bullet number three let's say hypothetically but not number one and two one and two we're just kicking the can down the road >> is effectively what we're doing. >> Yes. If you say one and two are the bullets one and two >> bullets. >> Yeah. Yeah. That's exactly right. They're not in the budget. They are choices we would have to make and they would impact the balanced budget or the they they would impact the bottom line here. >> Okay. >> So

117those are all options on the table. Um you know >> Mike Oh, go ahead. >> Well, that the first one as far as the officers go. I mean that's still an unfunded mandate from the state to some extent. So I mean we don't we almost don't have a choice on that one. >> But to some extent what do you mean by that? like we have we haven't you're saying >> well last year we kicked the can down the road by filing for a good cause exception and only getting one officer and that put us in a deficit for the number of officers we're required to have. >> Yeah. >> Sure. >> And we're still not where we need to be as far as total number of officers based on what's the state says you have

118to have >> plus adding a new campus >> right >> two years correct. >> Yeah. Yeah, we haven't that was a big part of this presentation at this point, but ultimately at some point we have to make decisions about that. >> And the second one goes to the quality of our educators, >> right? I mean, those 10 to 20 year educators that we want to keep in the classroom and we're just making a dent in trying to make them >> that's a one one year out of seven plan. >> That's a one out of seven year plan. And will we get to year two? We don't know. But but we got to start somewhere. And to add to that, um Chris, as I think about, you know, a few board meetings back, even going through

119the extension that we voted on as far as, you know, what was that the uh um as far as being certified, the certificate amount of certified teachers th this decision will affect that. When does that mandate come into effect as far as having certified teach like as Josh was saying certified teachers in the core core subjects. >> So the extension that we were granted is for three years. It starts 26 27 and you So it's essentially like we have a three-year DOI. We have three years and then there there is no more DOI. There's no that's okay. >> Everybody has to be certified. >> So I have not stood up this long >> the computer. >> So this budget and next and and next year we we're still under that the the the uh authorized

120or >> Yes. >> Okay. So we don't have a tremendous increase in teacher salary yet. >> Correct. When they have to have to be everybody has to be Yes. Okay. Correct. Okay. I think Mike, what you're sort of uh ideally would would want tonight is some kind of direction on specifically the officers because of what it takes and the time frame that it takes to order vehicles and equipment. So, >> another >> Yeah, the others, you know, that's a decision we could we could put off, but if we're going to go get find used vehicles, find the equipment, get them in hand, um I have to receive by 6:30. >> So, so do you do you bring two scenarios to the June meeting or one or by May to the workshop? You bring one scenario

121or two scenarios? You you want to you have it nailed down by May of one scenario? Well, ultimately I would defer to yourself and the and the board. What What do you want to see? I would say that I'm here to provide um I would ideally like to kind of consense around one. Um we could still change it. We can still deliberate. Um it's really by June we have to adopt and I just I always like to propose that way the community at least has a month there where you've proposed the budget, you've put it out there on the website, everybody has a chance for input. if you waited till June, you're kind of making the decision on the fly. And um I don't know. I have some concerns about that. So, but we're in

122unique times. So, if if it called for it, we could do it. Um but to her point, the police officers, I think, is at the the start of the discussion. Um regardless of what we do with anything else, we have time. We don't actually adopt the comp plan until June. Right. >> Right. So, um, it is if we're going to do it, it'd be nice the earlier we can tell staff, hey, we're going to do what whatever we're going to do. It does give them all the information they need. >> The officer, you take that amount versus 1.1 for a 2% increase is not even comparable. So, I mean, to go into the fund balance for the three things recommended is is, you know, that that's conservative approach for for those things, for those ideas.

123is it's really do we want to take do we really want to go into it for the 2% increase an additional 1.1 million knowing what that's going to do to us next year on that budget >> or do we take a conservative approach and go with the 1% increase plus the the $529,000 out of fund balance that's that's really >> that's the crux of it right there >> some thoughts >> can I ask what are the repercussions if we don't add the additional three officers like What what happens if we don't add? >> So, you'll have to go back to the state uh do another good cause exception. Um and used to be it would stay in house. It no longer stays in house. It's y'all's decision. Uh the way the law is written, it

124says the board must the board shall find a way to have armed people on campuses. Uh if funding or applicants is an issue, that's as far as the state says that's not their concern. The concern is you as a board must find a way to have armed people on campuses. >> Mike, I don't know that we're officially voting on anything. >> No, not um but I think I've given you my direction is I would like >> all three of those things. >> Okay. >> At a minimum. >> Um and I would lean toward the 2% midpoint increase. Right. >> Say that again. >> I mean, that the three suggestions on the menu that he provided, I I would say, you know, that that's my direction. I like that. Uh and I would lean toward the

1252% midpoint increase. I still think that's conservative. Um because we're basing this budget on no student growth when we know there are thousands of lots being developed in this town that's going to require us to have more students. Um and you know it's not a hope that that happens next year. I mean I think it's a reality that we're going to have those more students next year. We're just basing this budget on no student growth right now. I I agree with Mr. Dylan on that. >> I do need to say this, put this out there in the universe. We're also holding um we're holding growth constant. We're also holding the impact of vouchers because we don't have very many seats in this community. We talked about it previously. Um that is an unknown as well.

126So we we don't we don't have any growth, but we also have any loss to that. I don't think we will. I don't think that's the way it's going way it's going to go, but that's there's so many unknowns that um just want to make sure that's clear as well. >> So, it could be the voucher. So, it we we could almost net out to zero on on the students being lost with the vouchers and then possibly the growth it I mean net zero or it could be we get instead of 400 additional students, we're only getting 200 additional students because of the vouchers. That's absolutely true. Um, okay. I hate as your CFO to bring so many more questions than answers. >> Normally I provide data and and you know give you some guidance,

127but there's >> we've got more unknowns this year than I've ever had in my whole career. >> So, >> um, but you guys have a pretty good handle on it. You seem to understand the the the challenges and Yes, ma'am. I'm just going to say like in Hayes County and Kyle and other areas, I think what's gotten them in trouble is they built them thinking they'll come and now they are not coming any longer. And so for us to set a premise that yeah, we have we're we're building these all we we have all these lots. We've started all these subdivisions and so they're going to come. >> We don't know when. And It could I feel like if we go with the the 2 point and and believe me I would I would prefer

128to give our teachers a 3% raise because they deserve so much more. Um but we start a spiral that could end us in a place where we have to cut positions in the future. And that's even worse than only giving a 1% raise to me. I I would rather know that I have a job for sure. than a raise. >> Are you saying this option without any menu options? >> I I I'm not I'm not certain on menu options. I'm just right now saying the the 1% keeps us at um >> and to your point, the positions and the compensation for the positions we have, it's all the same dollars, right? It's all >> it's the same side, two different sides of the same coin. And that's what we we talk about constantly is balancing

129those two. >> Yeah. I mean, I'm going to I'm going to tend to agree with with uh Kelly. Um, but I would like to see the three options. >> I I I I think all three of those options are going to be very valuable, especially the officers. So, >> when you say the three options, you mean the >> the three menus, whatever. Yeah. The officers, the the >> increase in the teachers, and the pairs. Okay. >> I don't think we can do without those. And I'm going to agree with Kelly, the 1% I am just afraid of next year's budget that there would have to be some staff cutting. >> Yeah. >> And that that a small community like that I could probably look someone in the eye and say, "Look, I'm sorry. Want to

130>> Yeah. >> But we're going to try to save people's jobs." >> So what I'm hearing, and I want to make sure this is accurate there, there seems to be almost universal support for those three items. I mean that there's more support or I guess agreement about the officers and the No. Okay. >> So, let's talk about that for a second. What you want to see in May? Should it include the officers, the um the teacher pay scale adjustment, and the the bringing everybody up to $15 an hour? Those are three items that would be helpful, you know, to at some point now or or in May um make a decision on, but I didn't mean to put out without without taking a vote. I think we may just get give a thought. >> Um

131Carol expressed a thought I heard a thought of the the 1% increase and the three items. What are we labeling those as? >> Just menu choices. >> Menu choices. >> Okay. Um, and I'll u I agree with Carol on that 1% and those three items. I heard Mr. Dylan, he liked the three items and the 2%. Is that correct? >> That's right. And I and you know we've done such a good job in the eight years that I've been on the board of building this fund balance to where we have excess to use in one year of using it and seeing where we are next year is I mean I think it's a prudent decision to do and a conservative decision that that that makes it there. Um, and it helps our teachers, the the

132people that we've charged with educating our students and making sure that those students are I mean, if you've seen social media at all, you can see the teachers posting about my kids are taking the STAR test this week and and being excited and and looking forward to having good outcomes come up um because of this and and the long hours are are being paid off at this point. So, Um, I still think it's a conservative at 2%. Now, we go any higher than that? Probably not, but u I I do want to ensure that we keep our quality educators and that they have a livable wage. >> Kelly, your your thoughts. We're just trying to give Mike some just each person's thoughts and give Mike some direction when he for you. >> You go ahead.

133>> N >> I was just going to say I was just going to add like I think for your sake Mike and I I mean only for for myself I'm not speaking for everybody but just who's spoken or said something is the three just seeing those menu options is what I think we do agree on between us three. I don't want to speak for everyone what we're saying so far. >> Yeah, I think I think seeing them would be great, but I mean my initial reaction is that if we're not going to give it to teachers, I mean I'd rather kick the police officer thing down the road a little longer and and apply for another >> um whatever it was called. Yeah. Good cause exception >> and um get some money to our our

134our teachers. >> So the second item is for teachers specifically. Are you in favor of that? >> Yeah. >> Okay. And the and option one is for the teachers a 1% and option two is for the teachers >> at 2%. So everything in this thing is payroll for everybody. >> Yeah. >> Thought just a thought. So, so I'm hearing So, for Mike's direction, Priscilla, what you would like some thoughts for Mike would you like to see for May is one or 2% and >> one or two and I guess the the menu items we keep calling menu items. It would have been really beneficial to see that tonight just kind of all lumped in together so we could really kind of get it. I've been having to toggle back and forth to the screens to

135get it in my brain, but um yeah, to definitely see um the what what would have been I guess bullet points maybe two and three. >> Yeah. So for the teachers on the back half of the scale and for the bringing up to $15 an hour for the lowest paid employees. Yeah, if it's helpful just 300 125 100 >> on those other items. The problem is what combination do I mix them with? I could have about 10 different scenarios like 1% with officers and then you know it it I was just trying to hone us in and then bring that to you in May. So I I they they already >> Yes. So, both of these scenarios include the one officer. That's what we brought to you guys last month as as options. >> And

136so, if um Trustee Ruiz, if you're talking about, you know, adding the two bullet points, >> uh that's that would be $300,000 out of fund balance. >> Okay. >> If we did 2%, it'd be 1.4 four out of fund balance. >> But that the if each one of these scenarios has one officer. >> Yes. >> And and we talked about three. >> That's where we were last time. >> That's just a total of three, not total of four. >> Three more. Total four. Three. Yeah. Total four. >> Total four. Total four. >> Gotcha. Okay. >> Three of us. >> Gotcha. And and Diana, I was going to ask you, I know it was kind of brought up earlier, but you don't have to go like all history, but can you give us like a brief

137like percent raise of history? I'd like to see that because I'm trying to figure out when the last 1% was even given, >> you know, and it doesn't have to be >> We can put that together. >> We'll put that in Friday newsletter. Um I think there may have been one year in, you know, almost 10 years of me being here that that we did one and a half%. I don't know that we've done a 1%. I think one and a half was the lowest in the time that I've been here. and no more than 3% for the vast majority of employees. There were those couple of exceptions for pair professionals where we I guess I I also just um I just want to say for the public's sake I know this is recorded that

138it really upsets me that we get threequarters of a million dollars for safety and security and we are mandated I'm going to say it over and over and over that um it upsets me that the law requires us to do a lot of things under the guise of safety and security and including mental health training, including all the things our officers have to do and every other employee and staff member to recognize mental health issues, to recognize substance abuse issues in students. And um the state just needs to pay for that. That's ridiculous. Great. >> Josh, what were your thoughts? >> Did Mike, did that did that help you hone in a direction you're looking? >> I will do my best. >> so Mike, we need you to go out and rob a bank. >>

139He's kidding. for everyone watching. >> You know, I don't think we're in a I don't think this is not part of your direction here, but I do want to tell Chief, you know, I I really appreciate it personally seeing um your officers not on duty and going to, you know, playoff games to go watch and support kids when they don't have kids that are, well, I should say they all all of those all of them are their kids. Uh it it's it's very meaningful to see them in the stands like that supporting Bastrop ISD. Obviously, we're not taking any any action tonight and I think the ideal scenario is that we have direction on whether this uh the equipment that we would need for officers and vehicles, but at the same time, um you know,

140we have a board meeting on May the 12th. That's a couple of weeks from now. So, um, you know, I want I want everybody to feel really good about the the thought process and the decision that you're making. And if you have more questions, so if we can't get a good semblance of a direction, you know, that's okay. We can we can move that to May 12th. The the key thing is that if we were going to use any of this year's budget to buy some of that equipment or a vehicle, we have to receive it by June 30th. That's that's that's a requirement. >> Well, I mean, this is I mean, and >> Dr. Lee, this is this is your first goound as superintendent with the budget. So, I mean, I think you can

141have that direction to do that at this point. >> Yeah, I I Yeah, that's it's a tough one. Um, >> the equipment is going to be used one way or another at some point in time. >> Just true. >> I mean, and if we can put it in this budget year, let's put it in this budget year. that equipment. I mean, if you if you purchase it now, it's not going to sit in the parking lot. You're going to be using it. I'm going to assume. I mean, do you have right now? Is there one vehicle per officer >> or can or can we use extra vehicles now just to >> So, currently, yes, there is one officer per vehicle. We have several vehicles that are 10 years old. Yeah. We could in our line

142of work, we have what's called pull cars. they have extra sitting around. So when a vehicle goes to the shop or is involved in an accident or whatever reason like mine was just had cover for the last month having some recall some warranty work done and so when your vehicle's gone you have another vehicle to drive u and so no they they we would use the ones we have uh we have to order radios uh the radios take anywhere between 8 and 12 weeks to come in. We have to order body cameras. We have to order the Dell Tough books. There's equipment that we have to have. And so, uh, the radios are good for 10 years. The, uh, our watch card systems are good for 10 years. Our So, if we had to hold

143them for an extra year, they'd be held for an extra year, but it's also if an officer's radio goes down, we have an extra that would be available to them. So, >> so it would be purchasing equipment now u for the just in case. >> Yes. >> Yeah. I I have no objections for to to to do that. I mean, I'd rather have an a vehicle on standby so it is used or a radio as opposed to being without. >> No, I think it's a good use of funds either way. Yeah. >> Um >> I agree. >> Won't go bad, won't go unused. So, uh we'll proceed with that and get that'll give us some flexibility depending on what comes out of our future meetings. Great. Well, that's all that I had in terms of

144materials to present. Um, happy to answer any questions and if you have questions after, I know there are some data requests that we'll get to you. Um, and then I'll work into try to work into the next meeting as well. I guess it would depends on how quick we can get the figures. >> Yeah, the things are requested tonight we can get to you tomorrow. Um the I mean there's no reason when in May at our May meeting we couldn't have budget discussions. I can provide an update if I have you know I won't have much different information but if there's any pertinent updates I can provide it and we can you know have discussion um it won't be in a workshop like setting but we have we have May so here's what June will

145look like right now you'll have scenario you'll have 1% 2% the three things we discussed out of fund balance somebody's going to make a motion somebody's possibly if it gets seconded. Majority is going to pass that scenario. Uh in the past, we've always u in the past we we've we haven't just left it open to we don't know what's going to be made a motion or a seconded. Uh we kind of that's what Mike's asking for to kind of narrow this down of where we are wanting to go. I know there's still some information that this board is needing. That's why I asked do we need to have another workshop to discuss this to be courtesy or you know to listen to everybody get input and think about this. Well, I think too what might

146help is if we essentially have two recommendations to consider from administration at this point. It might be helpful if if we had you know what is administration ultimately going to propose to us too and are we going to adjust? >> Yeah, I was just about so so we do have I think where tonight's workshop is is to hey let's talk about it. Let's give administration direction. let them go back and make an official proposal or recommendation for, you know, and it's ready in May, that's great. We won't vote on it till June, but you know, and but if it needs to be adjusted in May or more direction given, we can do that, too. I don't know that another workshop is going to be necessary to to do that. Well, and because because there are

147still so many unknowns. I mean, even I guess what's blowing my mind right now is the 15% cuts cuts that you've, you know, decided across the board are appropriate, but then what does that look like next year, you know, for us on either of these scenarios? So, >> there's not a whole lot of meat on the bone there. Yeah. >> Down the road. I mean, this they're pretty running pretty lean. I mean, it starts if you know it's hard. There's just not a whole lot there that is truly discretionary if you think about it. >> And one thought that I just meant not to cut Mr. Dylan off a while ago, but this this if we go with option two on the 2% that 1.1 is not a one-year amount out of fund balance. That's

148going to be next year. It's going to be especially if we're going into a four or$6 million deficit, it's going to keep coming out. So, you know, even those other three things that we're we're looking at as well. Um, so >> it's definitely the starting point. >> It's a starting point, right? And I think >> holding everything constant if we don't get additional funding in next session. Um, they they seem to have an appetite for giving us additional special education funding. So, that's positive, but we'll have other expenses that that we're, you know, that are we're battling as well. You know, transportation goes up every year and, you know, cost of everything. So, um, to your point about the administrative recommendation, we're happy to do that. Um, you know, we'll come back, uh, with that

149in May if you'd like. I just want you to be clear. We publish in early June. So, if I'm going to publish the budget that we're going to propose to adopt, we can still change make a change in June. It just I always ideally you would want to for the community sake >> propose what you're going to adopt. Um, so that you know, >> well, let me just >> Yeah, go ahead. >> I want to >> simple this down for my own mind. I think >> we have 50 million in fund balance. >> Yes, sir. >> Under base scenario 1% midpoint, we're losing 4.3 essentially out of fund balance on that one. In scenario two, we'd be losing 5.4 Four >> or six total. >> No, we lose nothing at us for next year for

150next year. Not >> No. Yeah, that's what I mean. I'm talking >> No. What we approve, we would lose nothing. >> Well, no, I'm saying scenario one. >> For next year, we would fast forward. >> Yeah. >> Two years for 27 28. >> The 4.3 >> 4.3 >> maybe the 500,000 plus if we do the 1.1, it's those three added together, >> right? So, it's 4.8 essentially and 5.9 is the difference. Either way, 2728 there's a hit to fund balance if we don't get any more revenue >> and we take no action >> and we take no other action. >> Yeah, we have >> I just that's what I wanted to be sure because there's the compound interest part of this where we lose 4.8 8 2728 or 5.9 is is the >> Yeah, there's

151definitely some I mean I can assure you we we're not going to recommend a budget that's that you know that much of a deficit I wouldn't think just because it that starts to get very concerning. Um this territory is is much different than $5 million, right? Um so we would have to make some we would have to make some changes programmatically with staffing there. I don't think there'd be any any department that's not going to be affected if we want to if we're in that situation and we get no new funding. That caveat, yeah, we're going to have to um either grow or grow out of, you know, uh or make some painful decisions. That's what But we're no different than anybody else. That's exactly what you're reading in the paper. Um and we're just

152a little better situation because of where the decisions we made for years leading up to this. Um, yeah, that's exactly right. >> Can a can a budget be modified? Say that all of the sudden we have >> it's amended all the time, >> explosive growth and we have I'm just going to make this up 800 more students or 500 more enrolled and we're not flat and we approve the budget in June. Can we come back in August and say, "Hey, take that 1% increase to two." >> Absolutely. >> Well, you can legally do that. >> You can legally amend it every time you meet. that that's I mean it's a wish we'll pray for more kids. >> I hope that's a problem we have. I will gladly >> attendance from 94 to 9 back to

15396 and yeah but I'm just you know that gives everybody working hand in hand. >> Yeah we're not if we were in that situ that's a great problem to have and happy to entertain that discussion if that happens. >> I hope the virtual program is a huge hit as well. >> Maybe we urge the legislature to budget according to enrollment as opposed to attendance. That would be >> that would be great. I'll take it's all a dollar to me. So, I'll fully fund special education, >> right? That's bigger loss than safety and security um overall. So, um >> Priscilla, Josh, anybody kind of any other thoughts or >> Okay, >> Kelly. >> Well, good luck with all that, Dr. Lee. Good luck, Mike. Yeah, good luck, Mike. >> I I do have one one thing

154to say and and that is that I want our teachers to understand that no matter what we decide as far as as a as a raise, we firmly believe that they do an amazing job and and it is always our desire to give them as big a raise as possible, but still do our job. and and that's never an easy decision, but our confidence in our teachers has never wavered and and in and in the staff. So, we appreciate everything that you do. >> Absolutely. >> I agree. I agree 100%. >> No doubt. >> I appreciate the conversation. I'm sorry. Sorry. Sorry to I was just going to say I appreciate I know this is tough territory and you guys have had, >> you know, put you through the ringer tonight, but um I do

155appreciate the input. It really does help. >> Any other thought? Mike, do you have anything else to present, Mr. White? Okay. Any other questions or thoughts for Mr. White? All right. Any objections to adjourn in this meeting? If there are none, meaning adjourn. Thank you. >> Thank you.