001You're here now. Yes. Okay. Okay. other other ones. And I think we just have to make sure we speak up. Where is the microphone? It's on the iPad. So work session at six o'clock. All right. So we will call at 4:32. Good evening staff. Um tonight is work session number four in sequence. Um remember that we scheduled to have a total of five. Um so we're move on processing. Um Miss Aer is going to be making the bulk of this presentation. I'm going to be here for the duration of it, but I'm also going to be communicating with our security guards and care of some uh issues along the way. Um but Kira's going to be present this evening. Um couple of introductory notes. Um we're sort of caught in the middle a little bit
002in terms of process. So we um because the governor I guess just signed the budget I think today just finished um yesterday yesterday. UI has not finished their budgetary calculator something referred to as the um F203. That's the calculator that sort of would allow each district to understand how much money they think they're going to be receiving. Um and so that is not available. So, uh, had to make a choice here and the choice we made is we don't we didn't feel like we could wait around any longer. And so, Miss Arthur has spent day and night, uh, the last 10 days essentially trying to kind of reinvent what OPI would be doing anyway. And we've given you some numbers that we think are materially correct, but as we went through them, we're already seeing
003some things. We're like, we need to ask OPI about that. Test goes away with that. So I think you need to understand that this is pre OSPI release information sort of our best or good faith effort to give you um the best of what we think the legislative session meant to us and the sort of general short trajectory of where we're headed but also to know that if there are changes that you wouldn't be surprised by that because our alternative was to just kind of throw our hands in the area and we we can do much better than that. So, um there's a lot of really great information here about um the impact projected impact of the legislative changes as well as headroction some important foundational factors from um I'll be here full presentation but
004Kira is giving them um and the other thing that we wanted to highlight is that there's some pretty dense slides here so you probably get a sense for our style. we're giving you a lot of detailed information. That doesn't mean we're gonna review every part of that detail information. And so if you want to dig in on a particular slide, sort of on you to say, "Hey, can we hold on the side of this?" Because we're going to kind of move there certain slides that she wants to dig moreformational for your reference. Okay. Any questions before we No, no questions. But thank you for doing this work. Yeah, that is a lot of work and that's huge and we will not hold you to the spent lots of time looking at it feel good about
005what we're going to present but again there's lots of scenarios and c to the socially. specific questions. So our goal tonight will be the clicker. Okay. So, the things we're going to focus on tonight, um, we really want to give you an idea of where we're at in the current year, our current spending and, um, reductions for next year. So, we're going to roll our enrollment this year in our fun loan, cash balance, and then where we think our revenues and expenditures are getting this year. Um and then moving into 2536, review our enrollment projections. Um also look at the revenues based on what the legislative session with and then our expenditure projections as well. Here we are on the timeline. Um mention significant. Yeah. This work session will go into our public hearings for
006in June and public hearings in public adoption in August. Great. So, just in reviewing where we're at right now, um as of May, um May 2025, you can see that dotted line that um from that's tracking where we are um with our inner fund loan. So that dotted line does show the inner fund loan in it being transferred over in January. Without the dotted line, that's that that solid gold line. Without the inner fund loan, um you would currently be at 8.5 um 5.9, sorry, 5.9 or 5.9 for um cash without So did receive our our love for April. Um and is the collection rate is a little bit lower than I was expecting. We're about 6% right now. We always do receive another large unit in May. got a million dollars in our May,
007but it's not quite to the collection that I had hoped. So, hopefully it might be made up in May. Any questions about this currently? Yeah. So, in June, um we're definitely going to go back down into the negative with um without the inter. So, you know, it it's important for us now to track our our cash with and without with and without the loan. So, um June, you receive a very two and a half% um aortionment payment. So that's one of our lower months and um balance without July and August. We'll jump back up those larger remind me when when do we have to pay? At the end of the school year. Yeah, August 31st and end of the school calendar year. Okay. Just want to confirm was there the change on the loan. Was
008there a change where the interest did is that for the current year just like so this is a look at um where we're at for May compared to May of last year and we are down 65 FTE. I think it's 565. Yeah. So it is a a difference of 65 compared last year. Um this doesn't include new market or new start. This is just our K12 numbers. I think it's really it's really important to to remove the new market and revenue start numbers so that we really have a sense of where we're at K12 because that's what our our revenue is based off of. So watch that closely. We talk about that each month but that's just something it's also important how many students we serve. as a district. So that would include our new
009market people and our start people. So are those numbers as dire as the K12 ones are? So it is it is important to to track who we serve? Absolutely. Um however the you know the new market numbers are are actually they're you know they're kind of in their their own entity where they are paying their own they have their own expenses and it's offset by their own revenue and then they also carry fund balance for them. So that's that's a separate um separate entity and as far as running start goes that's really just a flow through um you don't get to keep any of that money it's separate to the to the college once it's received. So I think isn't the trend that those are both increasing in students. So they're taking people away to
010more high blacks, right? Yes. So students are but they're still as far as the public is concerned they're still within the Tar area coverage in public schools. Correct. And there is a slide later that actually shows it that way. Show everybody that we're actually serving including I think for our PR, you know, we need to show that we're not necessarily losing students. going to different areas within the district. I both come from different, you know, both different school districts in the last year. Is this when we're talking about that, you know, 65 kids, which is just a little over 1% of our population, is that in terms of budget creation, are you are you happy with that or are you expecting to be less than that as you look to budget as we create a
011budget for next year within 1%? Is that like good, bad, different? Um so you will see on our our protections for next year it's actually a little bit lower. We'll be very conservative um with our enrollments and so um I guess I can rephrase this. Does that alarm you to be within like like obviously we don't want to see negative less less. Does that concern you to see a 1% up down? Yes, please. Can we go back to that? So, it depends on how you ask the question. So, we're not comparing budgeted to actual. Okay? We're comparing actual to actual. So, just imagine, put budget out of your mind for a second. This graph is simply looking at how many kids the district had when it separates out the American skill center running. So we're
012trying to get to the issue of kind of enrollment and staffing, right? How many kids are we serving in our bricks and mort schools last year as compared to how many for the same month this year? So what this is illustrating is something's up. Something's up, right? When it comes to our bricks and mortar schools, this is not a normal phenomenon to lose that many kids February, March, April, and May of the regular school. That it's it's not unusual in a regular school year to see a slight incline and then a slight decline through the year, but that should be more or less constant every single year. What this is telling you is that something's up. This year it's different and the curve doesn't look the same. So four years ago, three years ago, two
013years ago, one year ago, this year something is different about this year. So, I'm going to spend a ton of time on these next um slides just is just a reference for the big picture state budget. Um the state is increasing their revenues and is seeing a little bit of that. Um but it's just Well, so um if we could actually skip to the next slide. So what this is really illustrating here is that the prior two slides are showing that the state is spending more their budget is increasing by more than inflation. You saw the previous slide could along six, seven, eight% per budget. But then you look at K12 share of that um and the loss of producing this data. This was not right on the bottom. Um but 43.2% is the lowest
014share of that since at least 20. When was the clear? There was a series of clear rings. Um I believe first one state. Um um the first actual rule I believe was 2013. The funding followed but the actual rulings I think there were series of them. I believe the first one was only in the 2013 14 range. Um and then a series of follow-ups and then what led to 2017. That's what I was wondering with that. So it was like a um a lightning indicator that was clear. So somehow it might be time for another room because that's a lot of difference. Mostly what's happening is that it isn't that they're spending less in nominal dollars on public. They're spending more but the sort of health and social service area of the state budget has
015exploded. And it's growing much faster. So it's shrinking the size of the pie. So that because of Medate uh yeah there's you know there's a lot of co years in here where there's big influx of federal dollars much which was non K12 related um mental health to tell you the truth I don't list them all but I just know that um it it would be deceiving to tell you that they're not that they're cutting funding for K12 they're not they're spending is the percentages. The percentage. So, one of the talked a little bit about this um our past meetings, but you know, they had we were sure we were going to see a change in the property tax and the levy lid. Um and we did go and pass the maximum levies. So if board
016approved um we have the authorization from the state to to collect an additional $500 per student in the 26 2026 calendar year. So that would affect half of our next year and in the minutes slides moving forward we'll show you kind of exactly how much that would um and so you know so it again it would need to make the decision collect those funds um actually share it's about 1.7 million um additional funds that we would be able to collect next year for the 2026 the second half of our our April um our April collection next year we would regardless of whether we make that decision to collect those there would be an additional three and a 3.3% um CPI increase which is about $350,000. So um so that's compared to the levy lift it's
017it's it's not quite as much but there is there's a difference again you kind of see how that equates to some of the other funding later slides in to the to revenues is that because we already have approved So, the board certifies how much is collected every year. And so, the um the voters did approve to to be able to to levy um that that amount. Um but because of the roll back and because of the the cap that the state has put on that, we haven't been able to collect the full amount that the approved. So, when you certify board certifies the amount that can be collected. You you'll be certifying an additional 1.7 million in revenue which will actually increase um what's collected from taxpayers. They already approve they voted for it but
018they've already started making payments on what we were capped at. So they would see an increase but it's not increase in approval. [Music] That's what I was getting. Yeah. Okay. But to them last year this is the first year. This is the first year. Which one was that? February election. February last year. Yeah. February of 2024. So that's little over a year ago. There was there was a few different changes to specialized funding. Um they increased the ex excess cost multiplier. So, um, that actually just increases. We have our our flat rate for our BEA, um, our BEA students. And then there's one multiplier that actually increases our special ed funding for for MSOC and for everything for for teaching. So, that's the um that's the difference. And I have another slide that will actually
019show you the increase later of what we'll see for special ed. Um, they eliminated the 16% cap, which really doesn't affect us. We weren't up over the the cap. So, 18 something. Yeah. So, that didn't um that didn't affect us that much, but next year. Yeah, it was increased. Yeah. We have increased our our spending summer. So, Um and then the the threshold for safety net is is actually lower now um for that. So with safety net um we can't actually start claiming expenses until we reached a a certain threshold of what we spent on the specific student. So because they've lowered that threshold um that might help us in the future. about 1.5 million rounded 1.5 million safety net now I think Chris had 1.48 That's what we have been approved for this year
020and that's going steadily. She works pretty hard to make. So it's it's amazing that she can collect that much. So um next year that might be more also now the students that are turning 22 that's a lot there was I think it was that year kind of when that changed in that year they were turning 22. We didn't we weren't able to collect that. So, no, that's um so yeah, students that turn 22 will be able to we're not sure exactly how many students we have at that a couple there will be for next year I think. Um we don't it's the reason we don't have a graduation this year for our L program because they're all stay good for that more time. Yeah. So they'll all be so I think there's a handful of
021three or four. So essentially this marries the funding to the Yeah. So if we're gonna if they're going to force this to keep the children then great. So it's not forcing like if it's a legal requirement to extend access not your answer um but maybe Kevin's today was day of champions and talked to lots of excited you know lots have these special ed teachers but they're tired um and so just wondering ing what knowing this what Chris might be doing over the summer to think about how this changes staffing or changes specialist programming is that I think it's probably all tied into this because of the the financial situation we're in you know we already expend I don't know three plus million dollars more than we received so this is just sort of closing some
022of that gap obviously we've been spending money that we don't have so our goal at this particular point is not necessarily looking expansion and offering additional program. It is build up our ending fund balance, get out of the borrowing money. That's our current sort of priority. There certainly is opportunity to have conversations down the road here as as we look at trying to balance needs versus that any fun balance. So I think that's maybe for another day, but that I mean it's something that you know yes there's ongoing needs and the cuts that we've had will have a significant impact across this across our system. So certainly impacting special education, not necessarily in a positive way. So we have needs to meet. It's just a matter of when when and how we do that in
023the future. So here's an example of the um the increase in funding multipliers. Um so we would take our our base um dollars and and multiply them by that um 1.16. Um also um last year was it was different from our tier one and our tier two students. Um so resource one source two students were getting paid at a different rate now the same rate. So um so that shows pretty significant increase um because that is we actually have more students in our show. special and we'll treat that gap. Okay, so moving into the new um new rates for material supplies and songs there's an increase of about $81 per student um K12 and then another $10 for our 9 to 12 students. So per student so that yeah so with with MOG with u
024the levy with a number of these things um they were already scheduled to go up a certain amount. So it's easy to confuse what the legislative change this year actually did. Our local levy capacity was already right. So you sort of separate out what was the normal inflation increase from what we watched. Same with so um you know if I were to try to you know make this up how basically understand what happened they basically did two inflation but we were getting you know regardless of what happened districts where you're supposed to get about 40 bucks a kid that was just going to happen just because that's what basically model require right it more or less essentially kind of double not exactly but kind of did a double inflation The numbers seem big because you
025know when they publish it on the states I mean you know for all 294 districts it's a lot of money but really when you look at um ting with our insurance energy costs whatever certain amounts to what we're experiencing not only when we're already in a hole this doesn't fill the hole of our current increase right this does not cover the increase that we're experiencing in the coming year. So, this is like probably one of the most disappointing things of the legislature because I thought we all did a pretty good job of explaining how they have lost like we have not gain or kept pace with this and last the last in the last year they did a $20 increase or something. This year it's 80 and and we're telling them to actually close the
026gap. It's 500 plus. So, it's a a fraction of what we need to kind of close this. So this is a area they still got a lot of work to do to kind of take care of material supplies and operate. But you know if you think the idea is hey we should be able to have money to do curriculum that would be sort of maybe a that's a supply but u yeah we're not even keeping up with the costs that we are experiencing. There's a table showing the increase of the 5.3% K12 as a whole and also high school 912 separate. So just a couple other notes that um from the session um couple things I wanted to point out on this um our uh TK program. So that's number seven there. We are going
027to have a cap on our um preliminary about 172 students. But because we started our program halfway through the year, the FT that we actually claimed because students were only actually in the classroom from January to June. fulltime equivalent was only 17. So um the way the funding came out this year is they are capping the funding at what we claimed this year. So unfortunately next year we're only going to be able [Music] because we currently have two sides to kids and the state basically said we're out like you get 17 kids. That's what we're it's a it's a huge shift because this was a very significant state initiative. and all those trading and stuff is so mentioned earlier changing the inter so interest payments that have to be made still need to pay interest
028payment this year. Um but we will minimum next year on that. you know possible interest for this year. I think it's probably about 3%. I I don't know. That's their way of the loan is about 3.6. So 10% 36,000%,000 less than we're paying ourselves, right? from one area. So, um other great thing is we'll continue to be able to serve free meals to and we'll actually add um and that was a big one. Yes. So, um so all of our elementary school Yeah, I know. I want to go on number four. I could just I I just I think I sent you your email today. There's a question from a from a community member on I guess House Bill 1296 that was passed through the legislature. If that one is I still waiting for the
029governor's signature. I haven't really heard whether that's officially signed. Um but it's been passed through and so that one has like additional monitoring and you can investigate and OSBI got funded to do investigations that could go through this focus specifically on equity and civil rights. So there's a a series of of requirements that I tried to outline in the email that I wrote today. So you you can see some of that and we the parents really asking like how do you inform parents of this and I thought it is something for our team to be looking at. We offer some sessions and tried to kind of inform parents on that that house bill and we were required to put a student bill of rights in our handbook and our district website some of those things.
030So just one of those things our team OSBI is supposed to be creating a kind of toolkit for us to help improve this. That's kind of what that is. But there is some money set aside for them to do a there's a big chunk of that bill that is around compliance and investigation and what happens if they find that you're this goes into quite details about that too. So moving into our 26 members, this is basically what what Ben mentioned earlier, just sort of our caveat that we working with and and things might change as it comes out, but to share some of the enrollment numbers that we So here are the preliminary enrollment the preliminary enrollment forecast that um we're going to be recommending. Um see the first column there the 245 budgeted compared
031to our AFT which is our average annual this year May. Um so K12 right now is a total of 6941. We have 62 budgeted. We have a running start budget of 180 and we're currently at 214. Open doors is at 18 and we're at 17. Our AOB is budgeted 170 and we're currently at 197. So you can see those those bigger jumps in between budgeted and actual. So, um, in looking at, um, what we should budget for next year, 256, that last column there, A12, we're um, it's actually a decrease of nine, but you can see it's actually kind of fluctuating from you have some really large bands, some really large fifth grade bands that are moving to six, which is lowering what we're projecting. for um for elementary and then a large eighth grade
032cohort that's moving into high school. So that's looking like a big jump at the high school level but um it's actually just really large moving up. So um we've seen the decrease that we've seen this year is has been talked about earlier has primarily been at the secondary level. So other than that that eighth grade cohort, we're just pretty much keeping it flat to where what we're seeing our our average FTE from this year. So um so I think that that's important to understand. You know, we have a lot like you said a lot of fluctuation from our our students going to the market until running start and also to AL. We saw a lot of students a program. So um you know keeping those that FTE flat and then shifting them down to start
033and Italy. That makes it look like our total enrollment um look like it is that makes our total enrollment up um from 6569 to a projected 6580. But again, it's important to remember that a lot of those increases are Any questions about this or anything? Yeah, you think this is actually one of a issues. Um, so if you compare the two blue columns, you go, "Wow, that is almost exactly those would be the most accurate budget projections the district has had in its recorded history of 66601 to 65 in at least the last four years that we looked at without like not even." So you would look at that and think, "Wow, that's really it. And then you pull the first layer of the net back and like the aggregate is close, but what you're
034seeing is a ton more kids market. Quite a few more kids moving to running start. So the total number of kids served is pretty close to budgeted, but where they're being served is changing. So one of the things that Cara found was back in 23 24 22 23 back like co times um I remember this came out as one of the first things that districts enrollment is always higher than quite a bit higher market and all the Thank you so much. The New Market kids, the New Market kids didn't seem to be consistently in the high school projections. And yet the state expects that New Market is a school of the school district. So they were being reported as part of the actuals. They weren't reported as budget. So every year for three or four
035years, right? The results are you're looking at them. you're looking at this like aggregate look and you're going, "Wow, we are outpacing our budget. We're killing it. Our enrollment is much higher." In reality, that was not the true story. That was not the true underlying phenomenon. And even this, you still have New Market now embedded into high school. You know, AL is basically our so in terms of what counts towards the district, they all count. It's like how we get funded. This was the question, right? Funding is a little bit different. So, this is this is the Jill slide. This is the slide that shows all the kids that are being served. The other one starts to break them out in the way that Kevin makes how we get money for them. Yeah. So, I've
036been reading articles where some of the schools now are converting to have more of a technical uh stuff within the high schools, not at a separate facility. It's like we had this big trend for 30, I don't know, more years to go a separate facility. Now, it's back to integrating it. and they talk about the successes they've had in doing that. There's a lot I mean our our entire superintendent group in the region is all having pretty serious conversations around isn't it time to maybe reook at how we serve high school students because you we know a group of kids are going off to Running Start that probably it's not the best fit for them but they want more flexibility. They want some of the things they want to get through school faster. They want
037to not be have to show up three days or five days a week. There's there's some needs that are existing that we are not on that K12 brick and mortar comprehensive to save money. Yeah. And so and that and the new and and like our community college turns away nobody so they accept everyone. At one point, you know, you had to pass entry exams and have a certain like none of that is true anymore. So I think our high schools need to look at how we best serve kids. Um there is clearly a new market. There's a waiting list for numerous programs. So there's a there's a desire to have you know kids into career technical education programs. How should we examine those expand those on our own campus so that we can keep some
038of the kids on our own campus? New market will fill even if we kept some of our our tum water blacks kids at our own schools. New market will still be full. So um and then running start that's a whole so we'll be we'll be looking at that. I know that conversation gets kicked off pretty soon here about how should we be looking at high school. So basically with this um our new market that's included in the high school 2042 um AMT um we are we're not seeing we're not projecting any kind of increase um based on our AMT for this year. Um, so I think that that's kind of an important piece to to note that it's um it's not being based off of budget from last year. Is this a for this year
039moving forward? It's actually nine months on a so it's because you and you saw that drop that curve where we saw the 65 last year. You can kind of get that get that feel for how much increase that and then so the next few slides will show you the the revenues based off of these numbers. So um at the end we were projecting our revenues at the end of this year to be about 15.4 million. Um that's um that's based off of that the the drop in the AF aft for this year. Um so the the list there is is the difference in the increases of all the legislative outcomes that we just talked about. Um and the enrollment the enrollment projections that I mentioned. So if you look at um I just kind of
040broke out all the different revenue sources a 2.5% full increase is that 768 increase in there are seven insurance cost so they the funding model for this year was the 2.5 Um our increase in epox about 34,000 special ed increase due to those the new multiplier is just over a million. I lump together all of our CTE skill center a and running start number. So that that did increase that's an additional and then like I mentioned um with our levy increase with both the the CPI increase at 3.3% and the additional $500 per student that we can collect in our cap. When would we as a board vote for that certification? May uh I think we should talk about that. Um there's a couple of different models um months, but that's not an easy answer.
041Uh it's typical for it to happen prior to the Thanksgiving holiday in a normal situation. We started to talk internally about whether it made sense to take a resolution commend adoption of the budget because it will be sort of a pivotal point because if we don't plan to certify we're sort of assuming that we would plan to certify it because we advocated for the legislators that we advocated but um we wouldn't want to adopt a budget that assumed it so we No, it could be the same literally. So that would be after the public hearings public hearings to try to disclose that the success of the budget hinges a lot on certifying the Yes. You can take a resolution or take a motion. It's a resolution. I think at that point I'm just I have
042a question about so they did increase the amount per student. So, um I'm assuming because of the the increase in running their tuition or not. I don't know. As far as it increase the BPA obviously. Yes. Yes. So, that's what's right. And we do receive um there is a bit of an indirect that we we do collect on on that rate based on the difference they char even though we pass on 3% of that dollar it still shows as a revenue so it shows on the revenue side all of it and it shows on the expense side so we we see it in both cases so it shows as a big number but we end up just you know south sound bills us and we pay that bill just like bill like it's just another
043bill. So we get the revenue shows on our books and then turn around and write a check and it's revenue expense. So it's not 100% always app colleges have tried to negotiate that multiple kids. Yeah. You know what? We're just gonna have call you. panorama. So um so this is a total of 5.3 million new revenue questions about this good news that is good news and then side project to end here at that 119 just shy of um our bargain increases and our stepping increases what we um are contractually obligated to to pay at all the different levels. We have a 1.67 increase in IP and then 1.7 increase in seven column our projected non-inflation increases so that would be like our insurance for our insurance companies another 250,000 projecting you know just fuel and
044inflation it's just going to go up. So that's in total it would be another 585,000. So so those are expenses that we know we're going to have next year. Um all the work that we did in our salary reductions and our reduction in socks um moving into next year. And then we also continue to, you know, all year long we've been working on eliminating a lot of our costs. The offset of all of those is a negative. So, we are receiving 5.9 in revenue, but yeah, the cost. Yeah. Just want to reiterate those are estimates right now. Yes. Those are not facts on the salary. the work that we did this year um as we decreased our our end socks um from budget was about a million dollars. So we've been continuing to save um
045but again we have these these um larger increases moving into next year which are in business. So but it's right now so we don't know exactly what the barcreas pushing the best. [Music] So that would be an expect an expense projection of 116. That's important when we're looking at what our minimum fun balance% what that is going to be as so at this point you know looking back talking about you know what do all those numbers mean where are we at big picture back in our first work session we brought three different scenarios to you remind you that option A was stop digging. We just wanted to just balance the budget, not put back our reserves. Option B was to avoid an inner fund loan um and then in the future avoid the inter fun
046loan in the future um and um and put some back or putting some back into reserves. So option C was to get us compliant to um our policy of 6% which was eliminating over $8 million. So what what we were directed to do was find somewhere in between the B and C what we talked about um so you you saw on that previous slide where we eliminated um over 6.6 million a lot of that was just across the board from having a program reduction off. So, um, so we're, you know, we're getting there. We're making progress in this. Um, and and I, you know, I think that um, so when I say we're getting there, we project about another three million like just amounts. So this won't eliminate the need to or won't eliminate the
047need to happen at the beginning of the year. um hoping by like June by summer I think that will build up our reserves so that we won't have to continue with that that and then continue to work as we go into the next budget series to get closer to that 6%. So, just to kind of give you an idea of where we're going to be to get towards that that goal of that minimum fun balance compliance. Um, it would be up over eight about eight and a half million would get us to that um 6% goal, but remember 1.5 of that is going to be our our score. So um we would get about 119 million in expenses and 6% of our of our expenses. So um we just can't forget about So we're getting
048there. We have to be careful um on our spending and have to continue to to watch them. One concern I have, are we going to have to make cuts next year? They're already we haven't gotten to all the details, but in order to get anywhere close to that, that means another round of cuts. So, um, happy to answer that, but choose my words carefully here. Okay. Part of the difficulty of these exercises is you assume nothing's going to change and of course things will change. So that's the only way that we can do the exercise, right? To be like where we're at, where we're at. So we're doing the best we can to tell you where we're at. We know that things are change. The legislator's digging themselves up like so something's going to come
049loose on that end um as well. So I'm trying to think through like I'm sort of expecting legislative angle of this to chill out. We're not going to get the same sort of revenue that we got first year next year. So try to factor all that in. But how about this one scenario that slide that that um two slides back that another one. Anyway, one of the slides basically is like if we meet our goal, the goal of adding $3 million, but mine right now we got we're four negative months this year, right? And that is with the market reserves, right? we are relying upon the reserves of a new market to move some right. So if we if we are able to add $3 million to the funds, sort of play that out and
050nothing else changes, which of course it will, but if you play that out, you know, as long as we can maintain that operating surplus and the board is willing to ride that out, you can get to your goal. You can get to your goal, right? It take a little longer but you would as long as you're added right on something. So the levy in year two which is a full year collection correct doubles that amount. So you know you could there is a scenario in which if these assumptions play out that we would not need to make nearly the magnitude cuts we're talking about which which was a real that's the other thing I really wanted to talk about today is you know we've had a light tonight but I just everybody needs to understand
051the magnitude impact that the uh public system this year and then you get all the emails. I'm not you know like this has been a very very very difficult year for the schools people being asked to do a lot more um and it's taken its toll. So you know I wanted I wanted to make sure that that is part of the discussion here. It's it's easy to describe on a slide in a spreadsheet. It's been a huge lift for our leaders and our teachers, the bus drivers, like everybody has had to um part of this and it is really the packets for very um there is a scenario where if we control costs and we're willing to let time take over, we could achieve that goal without material significant costs. That is a scenario and
052I would say the goal if we continue to lose a moment that is no longer a well I say lose a moment it's a finessed way to talk about where you might be going to running start but black hills high school fewer and therefore we're staffing the buildings but those are Those are our team members that are feeling the impact. They don't care about the spreadsheet. It shows the total the same. These are jobs. These are our teachers, right? They're the ones that are impacted by those trends. You've seen Running Start kind of grow. Um I haven't probably I could put this I have this information we did every couple months. Um New Market's adding a electrical program. They're expanding their um the cosmetology to add barbering. So there's a little bit of ads. So
053they're looking at that pretty much programs are full. There is no space to add. So what you're kind of seeing what you'll see kind of from this point forward is new market sort of they are capped out. There is no space for that. Okay. One caveat to that and I'm hearing this directly from the registers which is New Market as a whole is up. doesn't mean more of our kids. That's true. We has we have the predominantly the highest percent by a significant margin than everybody else. So they may not serve more kids at large, right? They do and they do by by a large percent just because of the proximity to our high schools and so um that yeah we do have a lot of kids participating in market. So it's just but again
054I think that's probably not there is just kind of historically we're setting keep track of that over the course of the next couple years the number of kids in our school specific to go. So I guess another idea as we start to talk about rethinking high school how can we is there a goal for us to recapture some of those by creating programs that they want. So with respect to start um I mean we talked about the fact it happens but the entire picture of costs and to families and everyone. So people are going to have less money with property tax increases. um they're going to want to look for any opportunity to save money using college tuition. So I would strongly strongly recommend that you consider that number in I think it's going to
055go you put 210 I don't think we hit that number Kevin you and I we talked about college credits in high school that's a real big trend many districts so The problem is we we we're talking with again and I think we need to talk with OPI and others. They the community college needs to do some things that we don't like like they play by a whole different set of rules that we need to figure out. They can earn our kids can earn credits at a much higher rate. Like we have basically 180 hours in a seat to get a credit. They can do it in a third of the time at community college to get a credit. So like they're playing by different rules and we need to sort of push on the push
056on low guy to say we're going to start playing by your same rules and you're letting Running Start. We want to compete with Running Start and we need to be able to offer the same opportunities that they have running start. So I think there's a there's a group of us wanting to push back on that and create different opportunities for kids. So I think that will be a much more serious conversation in the years to come because it's it feels like this is like a benefit to the community college that again I'm not sure it's serving all our kids well. I mean, I think that there's some great opportunities, but how do we duplicate that? But we should can we do some of that same thing? I I don't I mean, just being realistic. We
057can't because you can't simulate an entire associate. There has to be legislative changes around because you just described, you know, you can get all of those credits. So, you can be a junior and a senior and literally here under your help and we've had many many many students we're going to celebrate their graduation who are doing that and talk about that as a huge benefit to them and is enormous benefit to families that are trying to figure out how to pay for higher education. So, it's one of those things that while you can continue to look at figuring out college and high school and more of that because that has the same effect as much credits, but I mean running start, you know, figure that are Running start there's other students in fact college now
058school was not a running start it's already so I think you know finding that of the people that so you know I wanted to point out kind of all the different scenarios on the changes and We started I think one of the biggest surprises to us too is when um projections in December class projections so that we can figure out reductions and where to where to reduce out in schools um you know saw a reduction of over a hundred from just in December starting in projections. So that was over a million dollars, $1.1 million in revenue just in that those few months that as we're going through our our productions, um we saw that massive shift as we are in the plan. Um you know, they kind of went everywhere and this is based on
059the projections moving. So we looked we rolled everyone up from in December rolled everyone up from that and then saw that that shift in what we're what we're recommending tonight compared to where we were in December. We saw that that big shift. So there's lots of different things that can change and our team came in adjustments at the middle school around seven bas. But it's also there is a real exciting opportunity. There's a lot of people having this conversation about the future of our school. We've got some really bright people in our school district really thinking about how can we be the leader in figuring out because brain starts fantastic but not for every kid and you know what we're worried about are kids that seek out these opportunities not because they're exactly getting an
060AA degree. they don't necessarily even go to the college class. They just want flexibility. If we can provide that flexibility, then why aren't we, right? And so that needs to be a partnership between our thought leaders, our association leaders, you know, um because a lot of districts figure if we could be the ones to figure it out, that would be a really big deal. The other thing I just wanted to say like I talked about looking at our class sizes and making those reductions again. Yeah. Just based on our secondary just based on classes and being creative to to make sure that we can have full classes and get to thoughtful approach to all amazing anything that you need to see moving forward before today questions you have any information you need moving forward Good
061so far.