001Rick's muted too. >> I can unmute when I need to. It just muted me because of the size of the call. It's going to mute everyone that comes in. >> Okay. >> Hello everybody. We're already recording. >> Okay, just give me a minute. Are we waiting? I kind of went to another screen. Heather, are we waiting for people for a minute? >> The only one left is Amanda. >> Okay. Well, let's let's wait a couple minutes. Okay. >> A moment ago. >> I am here. Oh, you are there. I don't see you on my screen. That's weird. Oh, there you are. You're under my name. Hi. >> Okay. So, are we we all here? >> Sir. >> Okay. Let's call this uh May 20 special meeting of the AR school district board of directors to
002order. And we'll start with a roll call. >> Mr. Iverson. Mr. Iverson. >> Yeah. >> Here. >> Okay. Mr. Lynch >> here. >> Mr. Mackey >> here. >> Mrs. Schik >> here. >> And Mr. Taylor >> here. >> Everyone is present. Um, now we need to approve the agenda where we have two items. some discussion of the budget proposal and an action item for the elementary school CKLA curriculum. So, we need a motion to approve the agenda. >> Mr. President, I'll move to approve that agenda as you mentioned with the two items. >> I'll second. >> We have a motion and a second. Any further discussion? >> All right, we'll take that vote. Okay, >> Mr. Iverson. Hi >> Mr. Lynch. >> Hi >> Mr. Mackey. >> Hi >> Mrs. Shik. >> Hi. >> And
003Mr. Taylor. >> Hi. >> Motion carries. All right. So then we have we have those two items approved as our agenda for tonight. And so we'll move to the 2627 budget proposal with finance director Mr. Burke. >> Good evening everyone. So I will share my screen but this is also on the executive content sess section of board docs. Uh this is the proposed budget for the 2627 school year beginning July 1st. So if we skip to the page three the highlights um there aren't many unfortunately um total program funding uh from the state of 19.8 million. Um, of that 92% is local property tax share uh with only 8% uh coming in state share. Uh this is based on a 30% implementation of the new school finance act and three-year pupil averaging. Um this year
004we are at 15% implementation and four-year averaging. total projected general fund revenues of 21.5 million and a balanced budget of 21.5 million of general fund expenses. Per pupil funding increased $654 to 92,922. Uh this budget does include a decrease of 5% of all non salary and benefit operating budgets. And of this um 21.5 million, 81% of that is represented by salaries and benefits for all employees. Funded pupil count due to the three-year averaging that I mentioned is down almost 50 students to 1532.7. um they dropped years um three and four off of the back end of the averaging which were easily our highest years in the calculation. Uh this budget does include a step increase for all employees. Unfortunately, because of the small amount of increased dollars, uh we are not at this time able
005to um add or include a percentage uh raise increase to the salary schedules for employees. uh the grants fund. Uh now that we are down to just the title one, two, four, and an easy grant for instructional coaching, uh we have total revenue expenses of 560,000. And the new capital projects plan that Jason spoke of at the last uh board meeting adds $374,000 of new projects. Uh and there are 75 uh.5,000 uh previously funded projects that from prior years that have not yet be been completed that will be included in that. >> Eric, may I ask one quick question? >> Certainly. >> Could you uh reconcile the difference between the total program funding of 19.8 million and the total fund revenue of 21? Is that just our mil levy override difference? >> There is money
006from that. There are other some other uh state payments that we get for at risk, for transportation, for ELLL um and CTE funding. And then also this includes uh roughly 200,000 of Medicaid and 250,000 of the secure rural schools/forest reserve money. >> Okay. And that's just line item in other places, not on this summary obviously. >> Correct. And when we get to the uh the revenue summary page, you'll be able to see what those other items are. >> Okay. Thank you. This is the assumptions tab uh which will show you the pupil count, the per pupil funding. Uh there is thankfully no budget stabilization factor although it was discussed and tossed um about during legislation this spring as to whether or not to bring that back. Um the property tax mill levy components we will
007go up not quite uh one full mill like we have in the past but we will cap out at 27 uh when we do the mill levby certification in December. Uh so these are estimates on the other um portions of the total mill levy and you can see based on the calculation of um the gross debt capacity here of 126.8 million. This next slide five will show the changes in the 2627 proposed budget versus the revised budget that you adopted and approved in January of this year. You can see the change in the FTE um what that represents for our school district and for charter school and then the um the total funded number which drops to the 1532.7 as I mentioned the new school finance model you can see the various um lines that
008come into that calculation. So this would say our total if the new uh finance model was fully implemented right now we're only at the 30% number. We would have a total program of 21.4 million just under uh but based on the the way it's calculated they take the difference between the new finance model and the old funding model which would have us at 19.1 million and of that 2.26 26 million in difference. We will see um 678,000 now uh in addition to the 364 that we had this current year. Uh so only uh in this uh calculation only 314,000 of new money from the state and of that 19.8 total share you can see what we will see in property taxes versus state share. So that 1.6 6 million will be spread out over nine
009months beginning in July. Uh our other general fund revenue 3.8 the capital reserve transfer 374 and then the allocation to the charter school of 1.7 million which is $150,000 increase. So, if we look at the total money, new money coming in this year, 150,000 of that uh will be included in the monthly PPR payments to charter school. >> That that other funding is what you just outlined with that was the basis of Tim's question basically, right? >> Yes. Yep. And you will be able to see that on the next the next couple of slides. This isn't for tonight. This will be for the June 3rd when you vote to or discuss to adopt the budget. This would be the use of beginning fund balance resolution. We have about 31.5 million from food for food service
010and then the capital projects that I mentioned of prior year projects that have not yet been completed. Here's a look at the pupil count history. So you can see the changes. we have a change or decrease of 33.5 projected uh FTE and then the 47.6 drop in uh funded pupil count from 2526 and then a couple of charts showing that uh the trend in the student count as well as the trend in the per people funding. Uh so from 201213 school year to now it's almost doubled just slightly short. We'll skip to the individual fund statements. You can review these charts if you as you go through the document. So, here is our summary looking at a a drop this year of 200,000 in um fund balance which was allocated for the preschool. And then
011you can see the changes which I can't see them because I'm hidden behind the little Google screen. So, there we go. So of for total revenue we're looking at 20.6 of local which is property tax and um the MLO 2.6 6 of state revenue, 455 of federal revenue, which is the Medicaid and secure rural school money, which and then with the allocations to the charter school and the capital project, we're at 21.5 million, including the beginning fund balance, projected beginning fund balances. That gives us a total uh resource or total alloc appropriation, excuse me, of 31.5 million. Here are the expenditures that do total up to the four 21.5 also um which leaves us at the end of the year with roughly 9.98 million of fund balance. And here's the breakout of the general fund
012revenue numbers to get us to the 21.5 numbers. You can see the property taxes, the MLO, the SOT, uh projected earnings on investments, and then the breakout of the state revenue. And then at the um these factor into that additional money and then with the negative revenue for the transfers and the allocations that gets us to the 21.5. Are there any questions so far? Okay, >> looks good, Eric. So far, yeah. >> All right. Um I won't go through the rest of these in any uh detail but you can scroll through and find the summary of the general fund expenditures and then behind that you will see uh each of the individual um program budgets. So for instruction um sped, student activity or co uh athletics um and the rest of the the categories that
013make it up as well as the pages for uh food service uh the grants fund, the capital projects fund and the trust fund uh as well or each of those is broken out. And then the last four pages in the document are the uniform budget summary which is required by statute. And so that is what uh will be submitted along with this presentation to CDE. Now the one that's on board docs currently is differs slightly from the one the draft version that was put out there yesterday. Um I have gone through and then added all of the FTEES for each of these and then also there were two grants that we have applied for in the food service fund. Uh those revenues have been added into that fund but other than that everything that's in
014this document is uh has not changed since the draft was uh put out yesterday. So, if you have any questions or would like me to address anything else in the what we've covered so far, I'm happy to do that. Um, otherwise, I will >> Could you highlight what in your mind are the most significant changes from last year's budget to this? Unfortunately, there aren't uh significant because we don't have much new revenue on it. Um uh the the disappointing part is that we're only able to afford a step plus the associated benefits at this time. Um our student count number is conservative. uh but because we have been declining um trying to project an increased number that may not materialize and then that locks in uh a potential salary and benefit increase that uh we
015would not necessarily be able to sustain going forward. Um Rick and I have talked about this. We are um hopeful that we do see an increase in the October count numbers so that we could potentially um see additional funding in the in the total program number and be able to uh implement a mid-year raise uh percentage increase across the salary schedules. Um if that does not happen, we also plan uh we do have a backup plan to use uh some of the reserve money that needs to be allocated out um for a one-time bonus that would be done midyear once we know that I mean if the total program doesn't increase to what we ex uh are hoping um we would be able to do that midyear um but the amount and the timing of
016that is undetermined until we get into um or get the actual true up numbers from October. >> Hopefully we can. Yeah. >> And Amanda has a question. She raised her hand. I was just wondering, and maybe this is more for um Rick, but Eric, you might know, is there any type of um strategy between now and the start of next year to try to increase, you know, awareness for attendance? Um obviously, we're having leadership change and that is a new philosophical approach to maybe both of those schools. I I I'm just saying is there any thought going into marketing for lack of a better term to show again accomplishments what our schools are doing to to try to just increase that enrollment. >> There is not an orchestrated marketing plan. I'll bring us back to
017our highlight page here. Um, >> can you can you just tell me how that 5% uh non salary benefit budget decreased by 5%? what what was that made up of? >> So when I send the individual budget uh building documents to the schools and to the departments, we look at this year's um allocation and total budget and set next year's allocation at 95% of that number. >> Okay, gotcha. >> Now, it may it may it's not necessarily a 5% across the board every account. Um but we look at it in aggregate by by budget file um to see where things have shifted around to accomplish that 5% reduction. >> Yeah. And are you're saying in essence we put a cap that said we really got to come in under by 5%. >> Correct. >> Okay.
018That make makes sense. Yeah. Very good. Thank you. Do we think there'll be any shift in the states numbers or those are set? Did the legislation pass? >> It did pass. It's on Polus' desk for signature, but it doesn't sound like he's going to sign it. So, uh, by default, if it sits for 10 days and unsigned, it does automatically become law, which that would should be this Friday, I believe. >> Okay. And this is our period of time to sit with these numbers for a while and see any other questions we have and bring those up before we officially approve this on the 3rd of June. >> Correct. >> Yep. I'm available for any questions you have as you walk through the document. If you >> need any clarification or anything, please reach out.
019I'm available. >> Just the observation of, you know, kind of the obvious that that we're up to 92% now. I think that is an all-time high as local funding 92% of the total. >> That is correct. Now we can hope that in uh 27 that the assessments net assess values reduce bringing that number down so that potentially the state share increases. But as we talked about at the retreat, this being at this level of 92%, we are going to need to um enroll in the state's zero interest >> Yeah. >> short-term loan program for after the new year. >> And actually, the timing is that that the >> the registration or the letters for intent to participate came out this afternoon. So, we'll get that submitted in the next uh few days. Anything else? Anyone?
020Okay. Well, thorough and well done as usual, Eric. You know, thank you for all your hard work. >> Thank you. >> All right. >> Anything else? Oh, one other note in in the executive content also is um the updated salary schedules for next year. Uh there was one minor change in that where we added a top level step on the certified salary schedule but other than that it is um equal to or unchanged from what we have in this year's adopted salary schedule. I'd just like to share my thanks for Eric's foresight in capturing 5% back of the operating budget and uh making it possible for us to meet the step criteria. There's some other strategic maneuvers. Ideally, we'd like to be in a place where we're offering a salary increase and we're hopeful that
021our conservative approach to enrollment um will actually not come to fruition and we'll see the same students that we have seen this year. Um but we thought best uh to be to be less aggressive. We're actually at a state uh school finance um session, work session I guess you would call it, where the gentleman from the state asked if anyone had held back from offering salary increases and we were the only people in the room who said yes and he applauded us and said that is the smart move right now based on statewide funding and it felt nice to for once to be the smart person in the room. So, I thank Eric for that. It made me feel smart for a second. >> Very good. >> what is the assumed enrollment for next year
022or how many how many less are you assuming? >> The the projection from the state was that overall we would drop 34 students which would be fairly unusual. um 39 students from um the our four schools with the uh uh PPOS adding five students. So that is portion of the total drop because of averaging it says 47. >> David, you sound like you're someplace fun. Well, I'm just got bubbling stuff going on. >> Yeah, >> kids in the background and all kinds of stuff. >> It's 47 less total in the budget with averaging and the projected state projecting us to lose uh 39 students uh well 34 students total. We thought that was an aggressive assumption on their part, but opted to go conservatively given the uncertainty of the budget early on and the uncertainty
023of future year budgets. And so, um, trying to play the long game here. >> Okay. Yeah, that's a pretty big drop. >> Anything else? Anyone? Well, again, thank you, Eric, for the usual great job. It's hard to gets a little harder in tighter times, but uh that's also when you sharpen your pencil and make sure we stay conservative, and you certainly have. So, it's the right thing to do. With that, then let's unless anyone brings their hand up, let's um move to the one action item tonight, the uh elementary school that Kelly presented to us, the um core knowledge language arts curriculum for implementation to be approved tonight. We saw a detailed presentation on that last time. And so, let's just open that for any any discussion first. Any questions or discussion? Probably for Rick,
024I guess. Rick, this is Tim. And just to I guess, is there anything new that we should know about the adoption of this or implementation or the perception from the elementary school that would make us I guess fertilize discussion? I believe that Kelly has led a a fair and open process uh and selected from one of the if not the highest most rigorous and standards aligned curriculum that's out there. I feel really good about the choice. I believe the staff feel very good about the choice and Kelly and uh and I are working on on a implementation plan that's comparable to the way we have rolled out new curriculum in the middle school and I feel that that's been going going well as also. So I think we're in a really in a really good
025place. There's a lot of positive momentum at the elementary school and excitement to get moving forward. >> Okay. Okay. So, nothing really new since the the last meeting and then the roll out to be forthcoming. >> Yes. >> All right. Unless there are other questions, then we're seeking a motion to approve the CKLA curriculum for the elementary. Excuse me. >> I'll go ahead and make a motion that we accept the uh proposal as Kelly presented it at the last meeting. >> We have a motion to have a second. >> I'll second. >> Motion and a second. Uh any further discussion hearing? Seeing none, we'll take the vote. >> Mr. Iverson, >> hi. >> Mr. Lanch, >> I >> Mr. Mackey. >> Hi, >> Mrs. Schik. >> Hi. >> And Mr. Taylor, >> I. >> Motion
026carries. Okay, that that is approved now for purchase and roll out and implementation. So, that is great. It was a very appealing presentation that Kelly made. So, that will make a difference at the elementary. We're looking forward to that. Um, looking ahead, I think everyone may have seen a note from Rick that the best grant news comes out tomorrow, so cross your fingers on that. And then um graduation is coming up on the 30th and I I will ask Tim to do my role there. I we my daughter had a child last year on that day. So guess what this is now? >> Oh, come on. >> Birthday number birthday number one. So, you know, the command performance there to show up and and um smile a lot, I guess. So, that So, I appreciate
027that, Tim. Um and then we have a work session on the third where we'll also where we'll be actually we'll take action, right? It won't just be a work session on the third. We'll take action on the budget. Is that right? There's a work session before. Yeah, >> sorry. >> Go ahead, Rick. >> There is a work session before. We were going to meet an hour early. Is that correct? I was kind of checking with you, Heather. >> Right. Right. >> And the work session is >> Sorry. >> The topic of the work session. >> Oh, I have you're going to talk. I have it here. Hold on. I thought it was related to best. It is related to best. >> That's right. Great. Thank you. >> Okay. And that's it. I'm sorry, I was
028saying it a little bit wrong. That is the day of our regular meeting and we're having a work session prior. >> Correct. >> Okay. All right. So, that's when we will all be together again either at graduation or on the 3. So, anything anything else for tonight? Anything Rick you want to say? >> I have nothing to add this evening. I'll have lots to talk about tomorrow. >> Absolutely. All right, cross your fingers everyone. So w with that then we'll uh we'll adjourn and look forward to good day tomorrow. All right, good night everyone. Yeah, Rick, again, thanks so much and all your staff, Eric and and Heather, for all everything that was done in the best. And of course, that that's what we're going to be doing is crossing our fingers. I think >>
029it was a great presentation. I can tell you that. I sat in with Rick on it and he did a great job presenting to the best board. Very strong present, you know, content that backed everything up, answered every question. So I don't think we could have done better on the delivering packaging it and then delivering it. It's just kind of where do we rank is what we're going to look for tomorrow. I mean there there's there's no bad news in that sense of you know just hopefully we rank high enough to keep ourselves really encouraged in the best case get it even a pretty darn good case as you come close in that ranking and you know where you sit for the next year. So well done on that Rick. So thank you. Thank you.
030>> All right, everyone. Have a great evening. Enjoy your families. Take care. >> Bye. >> Thank you, Eric.