001the context around budget sort of, you know, Iowa Finance 101 just to sort of calibrate everybody and set the stage for how Iowa school finance works. Um, and then we're going to jump quickly into actual uh challenges that we face as a district as it relates to budget. Uh, moving forward, we'll talk a little bit about enrollment and the implications of enrollment on our budget as well as some forecasting uh for the next five years. So one of the aspects about this budget that um I think you will find different than in previous years is um the team worked really really hard in the last few weeks um to make sure that we are actually projecting and forecasting out for five years. Um it make a lot of sense obviously to u to discuss the
002challenges heading into FY27 but it makes even more sense to discuss the context of FY27 with FY28 29 and 30 in mind so that we are intentional about the decisions that we make in FY27 and their implications for FY28 and beyond. So, what you will see tonight is um uh again that that context around how Iowa school finance works, how it um how we're um proposing that we make decisions as a district, as a board um in FY for FY27, but also looking at um future years and what uh what our budget holds at that point in time as well. Um so, we will talk also about a lot. >> And Shashank, I just want to say thank you. Uh, I know this is a um something that you know we really asked for and
003pushed and I know it's not easy. So, we really appreciate you putting in the extra time and energy to take a first pass at it. So, thank you very much. >> Thank you so much. Um, and so we're excited about the conversation tonight and for any questions that you have, we'll do our very best to answer them, but if we don't have answers, we'll come back with answers the next time when we meet. So, just want to um offer that up and we're looking forward to your feedback so we can improve our process and what we put in front of you so that we can make the best decision possible for our kids. So, with that being said, Shashan, thanks Matt. So, a little bit of a change in the way that we have presented
004budget to the board and the community. We want to talk about what the context is, what are the challenges that we are facing, what choices we need to make and what is going to be the impact of that on our budget. So, what is the context that we're talking about? We want Is that too far off? >> No, I'm okay. I just feel like I'm blocking the view for anyone in person. Okay. So basically want to clear what the budget timelines are for the whole process from November to April. What exactly is the legal requirement to adopt and certify the budget and spending authority? Then we'll get rolling into what the challenges are, the enrollment trends, the way it has been going south for some period of time and what the impact of that in
005the financial statements are our forecast and what the key drivers are and the forecast is sort of for a period of five years and what is the path to a balanced budget what kind of choices we are making to make it into a balanced budget and then there'll be a brief introduction to staffing standards and then be covered more in details in the next budget session and then discussions and questions. Matt, anything to add? >> Um no, other than just a sort of preview for you when we talk about um uh forecasting and and key cost drivers um our mindset is around what are the key cost drivers that are um year that are static yeartoear, right? Staffing, health insurance, things like that. And you'll see some key cost drivers um later in the slide
006deck that um we we'll be there every year. We just need to talk about how we might look to uh make adjustments there or not. Another key cost driver for example would be um our reserves, right? When do we use our reserves and when do we not use our reserves to spend down um and and how do we leverage that to balance the budget? So there's several sort of key cost drivers in in that light that as we're thinking about the budget moving forward that we use them as a sort of static frame to make sure that we know when is the right time to actually if you will turn the dial on these key cost drivers versus turn it up versus turn it down in order to balance the budget but also to meet
007um goals articulated in our strategic plan. >> So what is the budget process timeline here? So the budget is basically structured around the four choices that we said. Timeline is November to April 26th and multi-year forecasting as I had said. So let's jump into the timeline sir. So November 18th which is today we are talking about the multi-year budget overview with the key drivers and assumptions and the five-year forecast for that and brief introduction to staffing standards. Next meeting we'll go into details talking about staffing standards. We'll also talk about the reimagine education and the geo bond which just got approved. Kudos 74% of the of the residents voted in favor of that as well as the ple and say December 9th meeting we'll talk about the federal programs which is the title and other
008things curriculum adoption. This is a significant cost as you would see in five-year projections that we are making an investment based on our strategic plan. We'll give highlights about the ELLL special education and DOP. The the intent of starting from reimagin I mean sorry from PEL save all the way to federal program curriculum adoption ELLL where DOP is we will have the functional experts the subject matter experts. It is not going to be just a finance presentation so that we can share what exactly is the federal program used for, how much are we spending down, same thing your curriculum and all the other things. So it's not going to be a pure number related discussment even though it is part of the budget. This year we have changed it a little bit. Till last year
009we were talking about goals and guardrails as a standalone thing. We're going to integrate that with our strategic plan here. So as part of the discussions on Jan 6th, 20th and February 3rd, we'll be talking about the strategic plan costing related to goals and guardrails and other investments and we'll also talk on Jan 28 with diploma plus and signature schools. So most of the cost related discussions our hope is to finish it by February 3rd meeting. Now does that mean the budget is approved at that time? No. So let's go to the next slide. February 17th is when we set the dates for budget hearing. So we'll have in the work session we'll share with the board what is the proposed property taxes for the district. Our enrollment has been declining and there's a slide
010which I'll share later on that would trigger the budget guarantee once again for our district there. The first time we had it was when we had the pandemic and we lost over a thousand kids. Based on the reports that we have, we are losing close to 650 students for FI27. The board has to approve the budget guarantee and the budget guarantee is funded from property taxes. It is part of the general fund compacted. Then we will submit the proposed tax notice to the Department of Management and we'll send it to the publisher on March 10th. Then on March 10th, we'll also have a comprehensive budget overview. From this time on any questions which the board has, they can always ask us. They can always forward it to us. But this is probably the last time
011that we'll really be having overall look at the budget. The the tax notice will get published on March 13 and the first public hearing will be on March 24th which is a board decision and then we send it to the publishers which is published in the divine register on March 31st and we'll adopt the budget or the proposal to adopt the budget will be published on April 11 >> and can you share sorry the the overlay the rough timing of of uh contract negotiations. Has that general time period been discussed yet? >> That's that's prior to May 15th. Is that right? Is that or April 15th? >> Maybe. >> May 15th. So the the general timeline for contracts is May 15th. So this would precede that. >> March 15. >> March March 15th. Yes. >>
012March 15th. So, so the last uh public hearing would be um a month after. >> Got it. >> Yes. >> May I ask about um the public meetings and videos that you push out and then the feedback form that we have for public questions and answers and when does that happen? >> So, Kim and I know Matt and myself did not discuss Matt to jump in if you feel differently. Last year we had five sessions at the different high schools. The attendance ranged from one person to Rosie maybe seven to eight persons at best. So what we decided was we will have a virtual presentation for the community to really jump in and then provide their feedback to us. And if we are having the overall budget overview by March 10, we can do it
013anytime between February 17th and March 10. We can have that session for the community, but it's going to be a virtual session >> and that will be recorded and posted and then we'll still have that online. um >> Q&A >> collection of questions and Okay, thank you. >> Absolutely. >> Any other questions before I keep rolling? [clears throat] >> So what is the legal and financial requirements? The first and foremost is the budget must not exceed the spending authority and must be balanced. Property tax rates need to be set. And what we really said is basically the general fund management ple and pearl. Now general fund is a formuladriven thing and pearl is set. So we don't really make any changes to that. Management fund is the only rate that we have some flexibility on.
014The other thing that I wanted to highlight is school finance is complex. We have revenues which come from different sources like state aid, property taxes, sales tax, federal programs and we spend money based on how the funds can be spent under the various rules and guidelines. So just a slide which may help over here and I'll go back to the other slide before. So if you see the funding source which is the and if you look at state aid. So state aid is the source for majority of the funds for general fund and the fund account which is on on the road two are the different funds that the district has to maintain. But the general fund also gets money from property tax levies and also from federal funds which is what I had shared
015two slides back. So that is the basic flow. So capital projects which is largely same and the geo bonds we don't have geo bonds but with the approval of our geo bonds we'll be having discussions based on cash flow projections. How much of bonds are we going to actually issue? So that will impact the rate and the other source for for the debt service would be so basically property tax levies is where the funding is going to come from and save is from sales tax. So those are the two sources for save and geo bond. So this is the structure and then if you see in the last row uses of funds. So the operating funds can for those specific diagrams that we've listed below whether it is staff salary, utilities, computers, books, supplies, capital
016projects can be used to enhance the school buildings but again purchase laptops can be purchased either from here. We typically purchase it from save over here or from PEL and pearl which is the special revenue fund where again the computer logo is made and the bus is from capital project. So very very siloed finance. We have certain sources from where we get the revenue. There are certain funds it goes to and there are only certain things we can spend the money on. And this is this is very structured. I I'll come come at it at a later stage that if we have money sitting in one fund, it actually requires board approval before we can transfer money from one fund to another fund. So, so that is something which we need to be mindful of.
017I skipped on this slide. I'm coming back on it. So, what is what do we mean by the requirements of budget budget adoption and certification? We cannot exceed spending authority limit. What is spending authority? Spending authority at a very high level is our revenue less expenses. So if we are earning $100, our revenue source over here is $100 which is the row one. They need to be higher than the expenses that we have and whatever is remaining is the Spending authority is both the current year spending authority any and any cumulative savings that you have had from previous years. So it's a cumulative amount and that cumulative amount should be less than the expenses that we incurring for the year. The big watch out for us on spending authority is that it cannot go negative
018at a cumulative level otherwise the superintendent and the CFO have to go to the DE to present a plan as to how we can bring it back to positive and there have been districts in Iowa which have been in that situation. In layman's term spending authority can be explained like a credit card. You have a balance of $100,000 sitting in your bank bank, but your credit card limit is $20,000. You can only spend $20,000 on your credit card. You cannot spend $100,000 even though you're sitting with $100,000. So spending authority is like the credit card limit. >> Shashan, can you go spending authority that is the summation of funding sources or >> Yeah. So, so I I I I could So, if we go over here to this slide that I'm showing. >> Mhm. >>
019The source of spending authority is state aid, property taxes, federal programs, and fees. That is the revenue source for spending authority. >> Okay. So, it's everything except for sales tax. >> Correct. Because sales tax is a separate item by itself. Okay. So sales tax and >> also like philanthropic dollars right Shashank? >> Yes it is. Thanks Jenna. Yes that money is also coming over there. So sales tax is the one cent from the seven cents that we pay when we purchase anything is given to the districts. that one sent based on student enrollment term and that if you see in this particular chart is what is coming under capital projects under sale that is what it is as far as that 1 cent tax course which was approved I think in 1990 or whenever it
020was approved long time back and this is used to purchase buses improvement of capital buildings computers laptops technology those kind of items Does that help? >> Yes. >> Thank you. >> And that's why I said school finance is complicated. [clears throat] >> So this is where I was. Okay. So that was spending authority. Budget as I said must be balanced which is revenue plus fund balance needs to be higher than the budget for the year. And then the board has to set the property tax rates. So these are the levies which have to be set which is general bond management pebble pearl and debt service. We have not had debt service. We have not had geo bonds. The last time we had that was in 1989 36 years back enrollment trends and its impact. The
021biggest source of funding for the school district is student enrollment. We get dollars per student and with declining enrollment this makes it very very challenging for our district. If we see at this slide over here, this gives you a snapshot since 2018 19 2425 how many students were being served. So if you see there's a drop from 32,000 to 28,600. So almost 3,400 students served have declined. This is the belly buttons or the butts on the seat whatever we talk about which equates to almost $27 million. These are the number of students who are attending our schools have reduced over the 7-year period. the OEEN, which is the open enrollment in students residing in other districts who are coming to our district. If you see over that 7-year period is more or less flat, whereas
022the OE out has increased significantly from 1,600 to 3,000. So, it's almost doubled. The net impact of OE out OE in is almost 2200. And that equates to $17.5 million. And if you see the graph on the right hand side we have tried to show students served and the amount of OE and the and the line graphs shows both in which is kind of flat the green line and the out which is declining. I'm sorry growing. So so so that is the net thing which is really hurting our district. And one of the strategic goals that we have landed on is the net OE in and OE out. But keep me honest over here by 2030 we want to make it zero. >> Correct? >> So that means basically the net impact of 808 and
0233,000 which is almost 2200 students we need to get back in the next four years. >> Right? So this is a sort of an opportune moment to sort of plug in. This is exactly why it's critical that we pass the bond. Right? this this trend of of of loss of enrollment for the last many years. The bond gives us our best opportunity to interrupt that trend and actually begin to reverse it and begin to grow our student body and student enrollment as opposed to the trend loss that we've had over the last many years. Right? Creating these programs and doing it in very specific locations and at specific grade levels allows us to maintain and retain students and ultimately actually recruit new students back to our district. In another way to put it, the decline
024of 3,378 students or 3,400 students is almost equal to two of our high schools. >> So it's mass can you >> can you explain a little about um so the OE in and OE out are those fulltime students? I guess the the question I'm getting at is are there students from other districts that attend DMPS specific programs >> full-time? So these are students say living in West De Mo >> or Johnston attending our schools that is what OEN is. So the way the process works is twice a year for the OEM in we invoice those districts and we say we have x number of students from your district and then they will verify that and make the payment and same thing for OE out those other districts will invoice us. So we have historically spoken
025about the last column over here which is called the certified enrollment. So we get the money for certified enrollment but we have to pay out the students who are OE out and we get the money for OE in. So the total students who are actually attending our districts are the students which are served. >> So these are like full-time equivalents. But the the question I have is if there's a student that is an Ankeny public school student that attends central campus how is that reflected in these numbers? portions it is it goes to actually we're showing 88 but the actual number could be 87.65 65. >> Okay. >> So, fractional is also taken into account. >> Okay. >> Yeah. >> So, I just want to add two historical things for the board since I will
026not be here uh after the next meeting. Uh, one is that just a reminder and Skyler, I don't know if you knew this or not, but that in 2022, I think is when um the governor or 2021, we used to have uh we used to be able to allow students not to leave our district. And you can see the numbers in that as well as the voucher program. So, uh, those those are impacts that I think we were a little uncertain of when I came on the board, but you can see that those are exponentially growing in usage, um, as far as enrollment out. So, I I just want to caution the board. And I think the other thing is when I remember when we had I had my first budget presentation, Shashank, we had
027the OE out equivalent of one high school and now we're up to you saying two high schools. So, I just uh I I think this is a really important thing that the board needs to look at as you go into budgeting because it's something that's been a pervasive issue over my entire four years. >> Thanks, Jam. So this chart which is again related to our enrollment trend further breaks out which basically shows what is the OE and special education students out and then the growth in the charter schools out. So from 11 students to 229 students in 2425. So it's almost 200 220 students have gone to charter schools in the last three years. The other thing to highlight is what Jenna was just talking about the voucher thing ESA as the cap limit has
028been increasing year after year and now there is no cap anyone earning any amount of salary can get those dollars from the from the state the ESA numbers have increased to 3,100 last year was 2242 so almost 873 students who will be taking advantage from last date of this year and the number was very comparable to that last year 861 because there is no cap now as far as the limit goes huge huge changes. So what are the enrollment projections? The loss that we saw for FI27 649 students lower than last year. We are projecting at this point in time year after year losing 550 but we are waiting for the demographic study to be done. Once we have the results we will true up. The caveat I would have in this budget presentation is
029this is round one. numbers will change as we keep fine-tuning everything over here but this is to give a flavor to the board as to what is the general trend and direction we are heading in. So two other aspects about this particular slide that I want to sort of interject with is the the 649 number is a number even though we have not received official certified state numbers for Y27. This is our um our up-to-ate calculation um and interactions with the state but we have not received the official count yet. Um the other thing that I want to note um is that the 550 that you see when you take the 649 and then the last several years um and you take the average you see a 550 number is about what you get. So
030that's that trend is what we're actually putting out there as a forecast until we get the most up-to-date demographic uh enrollment analysis uh from our consultants. Um, the other thing that this does not include, so this is we're we're approaching this through mostly a conservative lens of saying this is we we believe this to be worst case scenario. The reason why I say that is because when you get further into FY2728, now you've got the the reimagine plan taking place. We've got other, you know, strategies and initiatives that we need to invest in. And of course, the reimagine plan is a $265 million investment that should begin to um interrupt this trend of loss enrollment. So this slide doesn't show that. Um that's part of the work ahead of us. >> Something to note on
031this particular slide, you're saying FY27, but we're using October one certified enrollment from FY 26. So just so the p public knows we look at October one of the previous year to fund the future >> budget. >> And so maybe just to add thanks for that um K. So just to add a little bit more to that um and we'll see it in in subsequent slides um but then the the snapshot date of October 1st FY25 right now impacts our budget for next year. And so, um, because there's going to be some, you know, um, conversations around, well, how does the the passing of the bond at $265 million impact the general fund for next year? And the quick answer is it doesn't. Um, because it's two different buckets of money, uh, number one. But
032number two, the bond passing on November doesn't impact the snapshot enrollment in October that happened a month prior to the vote. And so what we do know and what we believe strongly in is that this passage of the bond will impact us in years to come. It just won't have an impact on us for next year. It will be FY28 and beyond. >> So if the 649 is an up-to-date calculation, but we this number could be different. How I mean would it be a lot higher or >> um we don't anticipate significant change from this number just based on um our interactions with the state and um that constant sort of iteration of where are you at with your numbers because what's happening basically right now is they're just doing cleanup. Hey um we just
033want to make sure that the student that said that they were enrolled in another district we do have them actually attending that school. So they're just doing cleanup right now. So, we don't anticipate major changes one way or another. >> They're scrubbing the data. >> You mentioned the demographic study. When will that be completed? >> Um, we're expecting that to be done here within the next few weeks. Um, maybe I think early January. >> So, Kim, you brought a good point as far as the the date of enrollment and the year in which it impacts. So, I'll make it a little bit more elaborate just to give an example. This year which is in process is FYI 26. The budget enrollment number of October 1, 2026 cannot be used for the fiscal year which is
034already in process. So that is the reason why it is used for the next fiscal year. So the time lag is almost a year and a half. But that's a very relevant point because at times people don't connect that like I said budget guarantee. So we have tried to work three different scenarios over here based on 2% which has been 2.11 has been the historical trend for the last 10 years. We have taken 2%. We all know based on the revenue estimating conference RAC that the funds which the state has been collecting has been declining. The amount of money that the state has been paying for vouchers is much higher than what they had budgeted. So we don't know whether the SSA is going to be in line with the 2% which has lost 10
035years average. Could it be 1% or could it be even 0%. I only hope it does not go below 2% because we all know that 2% is also grossly underfunded. But these are all assumptions which we wanted to share with the board at this point in time. So if the funding is based on the scenario that I presented three different scenarios the budget guarantee will kick in in all the all the five years and these are the dollar amounts that will change. So what is budget guarantee? >> [clears throat] >> budget guarantee. Basically, the state says that if you are getting $100 in year 1 for your general fund, year two, you should get 100 + one, which is 101. The largest driver as I had highlighted for our revenue is student enrollment. If the
036enrollment is declining, then we may not be in a position to get $101. So that is where the budget guarantee kicks in. That budget guarantee is paid out of property taxes. And that is what I was saying that the board will have to certify and approve. The only way the budget guarantee kicks in is if the board approves and certifies it. I don't know a single district in the state of Iowa which would not certify. The board would not certify. So this is a little complicated concept. If I tried to explain it in simple language, but if someone has any questions, please ask me. What about a budget guarantee? >> It's intended to serve as a safety net in >> So we talking about a multi-year budget. what the cost drivers are, what are the
037new expenses, what are the strategic initiatives, gaps, and what are the strategies to close that gap. So let's look at FI26 budget. When we came to the board, we said this is what we're going to be spending for salaries, benefits, and health. And as you know, the payroll related cost or the staff related cost is the single largest cost, which is 80%. Then we have all kinds of other expenses. Then the decentralized pool funds and the new expenses. What are these new expenses of $5.6 million which was not budgeted at the time the budget was approved. So one is on the right hand side if you see the column pop deficit dropout prevention which is a million sex gifted and talented. This is what we are evaluating at this point in time whether we want
038to invest further amount for gifted and talented. If we do, we'll need to invest another $800,000 curriculum uh adoption. This was not budgeted for and this is for open s in the elementary school K through five. The cost of that is $1.2 million and then all other miscellaneous items add up to $2 million. So this is the $5.6 million which was not budgeted for. >> So this is >> I could ask Go ahead Matt. >> Sorry I was just going to say that this is current year. So um just want to make sure that the the public knows that. Go ahead. Go ahead. I'm sorry. >> No this is Jackie. So just on the curriculum adoption I know we've had a lot of conversations about curriculum and wanting to understand is this enhancing existing um
039curriculum? is this brand new curriculum if you could um whether it's at this meeting or another meeting because I know there's always a lot of sensitivity around quick changes in curriculum. So a little bit of insight on that at some point for board members would be helpful. >> You bet. I think we'll be able to jump into that um much more deeply in in in coming meetings. But I can tell you um for this fiscal year it's um updating existing curriculum particularly um around that open sad um for science curriculum. Um so that that's the the major expense in that 1.2 that was not accounted for um last year when this was approved. And then the additional question on gifted and talented is what deficiencies had you identified to um come up with this number
040and is it designated for um classroom uh learning or is it Yeah, >> it's primarily actually staffing. Um there was a um we were had an excess for the last many years in gifted and talented and had a spendown um approach to that and exceeded that spend down particularly in staffing. >> And you said that you're evaluating that investment right now. In a future presentation, will you be providing that ROI? >> We sure will. >> Okay. >> Yes. Did you cover Shashant the 18 or the um other expense the 95 million? What was that? There are a bunch of at least 10 to 12 items over there. >> Okay. Could you maybe talk about maybe one of the top two? I I'd imagine 10 to 12 that means at minimum one of them is $9
041million. Um what would be something in an other expense >> for FY26? Uh there is a change in health prescription costs. So there's a $10.68 68 cents which could be charged to each covered member which is under debate and discussion. We have the Montasuri curricular material, the hiring of a project manager for uh reimagine education, the CTE director, safety people that we have hired, part-time bus drivers. So there are boatload of items over there and that's why because each of them are small items by themselves. I did not get into the >> details when you're talking about the overall 95 million that's what you're referring to. >> Yes. >> So that's even maintenance and operational cost. >> Okay. Some of those sound like they're >> so for example that that's $40 million is just maintenance
042and operational cost. >> So you have the transportation cost you have all those different costs which are coming. I'm sorry I thought when you said others I was thinking about the increase of $5.6 million $2 million. >> I think it's the fourth item. >> Yes. Other expenses 18% and you had mentioned a project manager for >> No, that is for the new ones. So new expenses that is new expenses. >> Okay. Thank you. Right. That was my conclusion. >> So the what you listed, Mr. Hashank, is part of the new expense, the >> Yes. >> Okay. >> The $2 million that I was talking about. >> Okay. So then this nonstaff indicator on the left hand side is not necessarily an accurate statement. There are staff included in that new expenses. >> Not new expenses.
043That is true. >> Okay. >> That is true because 2 million right. Okay. Yeah. Thank you. Okay. So, this is the five-year projection that we have. A big big caveat for everyone is these are assumptions and they will change as the year progresses. when we get to that particular year and based on the financial assumptions. So we have taken a max amount that we would ever give for salary increase I shouldn't say ever give we've given more than 3% but under normal circumstances a salary increase of 3%. We will always evaluate it every year to see how much we need to give but only for the sake of assumptions at a high level. If the salary is increasing 3% the PA med everything related to that is also assumed at a 3% increase the health
044benefits increases at a higher rate so it's 6%. The other two items other expenses and decentralized budget we are talking of increase at 1% and new expenses varies and there's a slide which will expand on that. So this basically shows if we add up the FI26 the total general fund expenses is going to be $544 million which by FI31 is increasing by almost $90 million. The single largest item which is driving that which should not come as a surprise to anyone is the staff related costs which is the total of the first three over there rows but I would like to say this is just a c this is just a high level assumption for us to make a fiveyear forecast health insurance we saw that the cost over here for health health benefits alone
045is $84 million And over here we are showing $75 million. The $75 million is just health cost. And then you have life insurance, you have your dental, vision, everything. Just one single item of health is $75 million cost. This is a huge cost for the district. It is almost 15% of the total cost. This covers 4,500 annual contracts. And when I say annual contracts, the different staff and the families who are covered under the health insurance and under those contracts are the 12,300 persons who are covered, which could be the spouse or the kids or whatever. The cost per contract is $16,500 and the cost per covered person is $6,100. This is the single largest biggest cost that the district has. there is a subset and we have representatives from DMEA, ABSME and our uh
046different non-bargain groups. We are meeting on a regular cadence basically to see what is it that we can do different over here to see that there is some kind of a reduction coming out in the health cost. And when will that committee have a recommendation? >> So the hope is by February March we should have something. It will not be implemented for next year. So we do have a little bit of runway right now. We we want to do something which is going to be long-term impact and something which all the parties are comfortable with. Is HR a part of this conversation around health insurance? >> Sorry. >> Is HR is Josie a part of this health insurance conversation? >> Yes, she is. >> Right. Yeah. I just think it's it's we have wonderful health
047insurance, but I think we currently have one health insurance option, right? Is that correct? >> No, we have two options over here. >> Two options. >> Do we have two? But both the options are fairly expensive and very rich options because our co-pays are very small, coverage is very wide. >> That's so that's one of those dials, if you will, around what turning it up versus turning it down, right? Um thinking about, >> you know, do you know we've talked about even do we add in maybe an HSA option, right? And what does that do for us? And so there's there's a number of of ways that we can u begin to modify this particular um uh cost driver that would be both beneficial to staff but also potentially save the district cost in the
048short term and the long run. So having this conversation now sets us up to Shashank's point for a little bit of a longer runway conversation because we also know too that our our health benefits is a is a recruitment and retention tool as well. And so we want to continue to >> I mean I think that's data that would be really great for the board to see and making sure now that we have a new HR chief of HR what is it about I mean a asking all of our employees you know what their preference is and I just know it seems like younger people care less about health insurance and more about a starting salary and there's a variety of other benefits perhaps they're interested in and so I just think it's it's it
049is a it is a very important part of recruitment and retention, but I just want to make sure we're asking all the stakeholders about that. So, I'd really encourage the the board to to ask for Josie, some feedback from Josie on what is best practice as far as recruitment and retention goes and health insurance options. >> Thanks, Jenna. Um, I don't know if you can see it, but this conversation gets me all kinds of excited because I think we're all talking about the same thing, right? That there's there's options here and there's opportunities for us to adjust our our cost drivers. um that benefits staff but also benefits the organization as a whole financially um because every dollar that we save actually goes back into staffing and programming. >> Correct. You're exactly right. It's potato,
050right? So I I agree with you completely. >> And you said on that committee is DMEA HR >> ask me >> and you said that this report would be coming in >> February. Okay. So it sounds like the conversation or the presentation the recommendation is going to be a really good presentation or >> a really good recommendation. >> I think so ma'am. >> Can we make it quicker? >> Uh we can work on that. We well to your point because this is the major driver for us right in terms of all of our drivers. It's the second most expensive driver if you will. Correct. Right. And so there's there's a lot of impact that we can have with this. So this is a slide on all the new and different expenses that we have. So
051we basically said that in FI27 the DOP thing the gifted and talented curriculum adoption is going to be huge. This this adds up if you see over the fiveyear plan which includes the monastery as well almost $9.1 million and we have a separate uh day on which we will be talking about the curriculum adoption which is on December 9th. So there's going to be a session just on curriculum adoption because it's such a large expense the strategic plan. Well, sorry if I could interrupt too because it I feel like I'm speaking to the choir, but it's important to note for anyone else um that wants to join the choir that a guaranteed and viable curriculum is important and critical for us meeting um golden gardens when it comes to academic outcomes for kids. Uh what
052I mean by that is that guaranteed and viable curriculum must be up to date. Um there are new laws have passed in the last several years that our curriculum needs to reflect and also um we need to make sure that um our students are actually being provided with relevant curriculum um that is um setting them up not only for um life after high school but gives them a very strong and and consecrated um pathway towards enroll um enlist or be employed right through our our diploma plus program. So, um, as a district as a whole, what I would offer is that we've not, um, invested like this, um, intentionally in curriculum, not only just adoption to stay relevant, but being forward thinking around what are our kids going to need, specifically as it relates to
053the reimagine education plan programming to make sure that we've got allocated dollars in the years to come and that they are earmarked for that purpose. Because what you see in those numbers is not just about the curriculum itself in front of kids. It also has to do with the training of staff prior to the students receiving the curriculum. So, it's just as important that we train staff ahead of time as opposed to training them afterwards. >> This isn't the first time our teachers are hearing about this, is it? this potential five no five years >> and potentially new potentially new curriculum down >> I mean that's always an option in education however um >> yeah I I um I don't know the extent to what our our communication has been with teachers regarding um what
054we're forecasting and when that's coming and making sure that folks have clearly um an understood sort of scope and sequence of what we're purchasing and how we're buying when and when when training actually is going to come about. So, our goal is to actually create that five-year forecast that is explicit around what curriculum we aim to purchase and why then and what the training on the front end will look like as opposed to um looking at that at the same time. >> Wonderful. Thank you. >> The other big item that I wanted to share is the $2 million which is a flatline item year after year for strategic plan implementation. You know the reason why we have put $2 million it is more of a placeholder. We don't know what the actual cost is. The
055team is working on it. They're trying to find out and then we will move forward and that and also could potentially include the cost for re-imagine education. What is it that is needed? So this is nothing but a placeholder. We did not want to leave it out. This number will definitely change. Whether it goes up or down is difficult to say. >> Yeah. And what I would just sort of maybe add to that is we're in the first semester of the five-year strategic plan, right? So, we're looking at um our current results and that ROI around knowing what would what do we need to invest in can invest in more of less than um or sort of equal to in the years to come. So we still need some data actually to help drive that
056conversation and others just like in FI26 with a bunch of different items which are going on. So this is what we are trying to show over here in case the 2% increase to SSA does happen for FI27. The basic increase in costs what is the decrease in expenses which we'll share in the later slide. what we are doing for decreases. So the total budget increase is that and then the change in funding from previous year which is largely budget guarantee and then the other items. So this is the total change we're talking about from year to year. So if if the identified gap is $13.5 million for employ 27, how is it that we are planning to bridge that gap? Some of them would be one-time changes and some of them would be recurring changes.
057And let me expand on that. So facility retirement and the staffing changes which is $2.2 million and $13.3 million staffing ch changes would be covered by Josie and she will give a little bit of a flavor today but more in details in the next week. As we retire any facility, the staff would be placed in other open positions and we would not be hiring new positions over there. Jose, you want to add or Matt, you want to add? >> Yeah. Um, so what we're talking about that in staffing changes is through um a new model of staffing standards which we'll we'll talk about in depth on quickly today actually. Um but what and we can communicate that as well then too but this is primarily attrition um and so it's um a combination of the
058early retirement um incentive. Again we believe 1 million is actually conservative um in terms of the turnover savings that we would have in that regard of that strategy. But the staff changing is primarily attrition um and which is an important sort of distinction right when we think about staff changes. Um but the staffing standards allows us to get to a point of creating a foundation of how we um uh staff buildings and departments at central office looking through the lens of enrollment. >> Um how realistic do you think 3.5 million for facility retirement is in FY27? >> Um uh it's it's actually >> sounds really high. Um well based on um interactions with um our consultants right now um uh it's actually closer to 3.2 um and so that might be a little high but
059it's right at about 3.2 >> because we don't have to do any continued maintenance or anything. It's just >> correct. Yeah. Yeah. So it would be the will it's a combination of Yes. it sale. Um, and then there would be some cost avoidance um, in that um, that is actually not even reflected in that 3.5 that you're currently seeing. Um, and then there's a maintenance operational savings that come with that. >> So 3.5 operational and state price. >> Yes. And then just to follow up on staffing changes, I think um the board was made aware that there were positions that were hired um and I'm not sure that that was part of a broader budget conversation last uh last planning session. So, is there going to be some toptobottom assessment of the roles that have
060been hired over the past year or two or three to determine if those are critical positions that need to move forward? I just want to make sure there's a look back since some issues were elevated um in the past few months. >> Yeah. I mean, I think we can look at all positions to be honest with you. Um, based on um I think that the short answer is yes to your question that we can look back um I think there there needs to be a a more comprehensive look at positions based on our strategic plan and the goals that we have to meet and again um beginning to adjust and maybe reallocate positions to make sure that we are funding the strategic actions articulated in the strategic plan. We have to be able to deliver
061on those actions and sometimes we need to actually prioritize and restructure staffing to make sure that we get that done. Matt, just to um back Jackie up there, I really can't say enough how I how much I'd like to see a um any increases, maybe the top three or the top five departmental increases as far as staff members go. Um and then an explanation of why the change and if that's going to be included in that strategic look at our resources. I think that's what I hear you saying is that's what you're going to look at and make sure that we are deploying the resources we have in the areas that we have prioritized um rather than just keeping them where they are because that's where they are. Uh I'd like a look at the
062areas that have increased. >> Yes, you are you're yeah I'm tracking with you and and we're saying the same thing. So, we can tell you over the last several years the increases in staffing by department and um how those positions are utilized, things like that. Uh an assessment of all of our positions, right, around their uh position to um support the strategic actions articulated in our plan. Um that's the alignment piece that we need to make sure that we're um we're creating that there is a a throughine of the positions and the functions that they serve. that we are driving these actions to meet outcomes for kids articulated in our goals and guard rules. >> So, and Matt, I also I also want to make clear and this is just I'm just speaking for myself
063and I don't know how other board members feel about this. All of this discussion has absolutely nothing to do with whether someone who is in a position today is valuable or is not. Everyone who works for the district is working as hard as they possibly can and is doing the job we ask them to do. We are reimagining education and that means we are changing the way we do things and from my perspective at least I think that merits a look at how we are uh positioning ourselves from a staffing standpoint. So this doesn't this is not any commentary from my viewpoint on how someone is doing their job or their worth in their job because our our employees work incredibly hard for us. >> Yes, well said. Thank you Patrick. So the next few
064slides are basically based on the assumptions of if the 1% SSA happens what is going to be the gap and the same funding happening and the same with 0% SSA and how we are doing it. So only if it is 0% increase in SSA, which I only hope it does not happen, we are we'll be a little shy in a 529 as far as the gap to close the budget deficit goes. >> Yeah. So again, this is just an a an effort to show um both the board and the public that um obviously the the supplemental state aid matters and um if we get 2% that's considerably better than us getting 0%. um uh and is also considerably better than 1%. So um it not only matters for FY27, it matters for all the years
065um that precede that or that um that follow. So it it is important um not only in the conversation around budgeting and finance, it's also important in our advocacy and our conversation with legislators. Um, to Josie. >> Yeah. Do you want to speak to >> Thanks, Josie. >> All right. So, I'm here to give you a preview of what we're going to talk about next week with staffing standards. Um, so as Shank talked about, about 80% a little over 80% of the overall operating budget is staff. And so when we're talking about declining enrollment, there's an impact on our our staffing situation. So the district um when I first started a few months ago, uh we were working on a five-year staffing plan that's been put on hold a little bit so we could get
066some um anchor pieces in place. One of those anchor pieces is what we call um staffing standards. So staffing standards would align our staffing with our enrollment. So, um, for example, be class sizes is a great example of a staffing standard. So, we set a max, um, size in our, um, the K2 classrooms. We don't exceed that, but it allows us to predict what the staffing is going to be, um, year-over-year based on our enrollment trends. So, as enrollment either increases in a building or decreases in a building, our staffing adjusts to account for that. So, that's what we're going to be talking about next week. Shan, can you go to the next slide? >> Yep. So part of this work is re reviewing our enrollment trends not just as a district but our enrollment
067trends by buildings and how that impacts our support services that surround that. So district office um all of the supports that are in place to support the overall um district. So we have begun that work of um strategic staffing um and we are looking at it proactively um so where is our enrollment at right now? Um, so our team did what we're calling a snapshot day. Um, October 1st was a student count day. Um, October 1st also was our staff snapshot day. So we capture that at the same time so that we're aligned and we're talking the same numbers. So next week we'll talk a little bit more about those staffing standards, what they look like and the layering effects that um that we'll have on like what's a a foundational staffing standard and then
068how do we layer additional supports based on the needs of the building. Um and then next week we'll also talk a little bit more I think Patrick what you had asked um regarding adding positions um what does that look like? How do we account for that? We'll talk about what we um we call position control and it allows us to lock in our staffing so that those additions and everything are very intentionally made during the staffing process and then not added later on. um so that the board um our administrative team knows what our our staffing looks like year-over-year and can predict those costs. Any questions for me before next week? Will you be offering the the research behind or the the logic that you're using to determine some of those um class sizes and
069instructional staff? I'm guessing that you're using Yeah. a great deal of information regarding best practices and industry standards and um researchbased tools to identify what is the sweet spot. Um if I would be interested in in knowing just so that we have an understanding of we made this decision um based on what's best for students and here's the research to to back that up. Can I ask a follow-up question? Can you hear me, >> please? Yes. >> Oh, okay. Uh, sorry. Um, is this different than how we've reviewed staffing in the past? I feel like in the past we've been told there's a formula and each school gets an amount and then the school kind of makes those recommendations. Is this a different approach or is this the same approach just you're telling it to
070us in a different way? It's a bit different and I wonder if Matt can maybe speak a little bit more to it than I can. Um it's been an allocation system in the past. Um and so resources have been allocated. Um I'll let you jump in. >> Yeah. So um it is a bit different and um in previous years the allocation um was determined um through number one through a a certified enrollment count um and not a student um served count. Um it also um excluded um gifted and talented and special education. Those allocations were done separately and distinctly um in years past. And so again, if just special education um as an example, we work with the IEP teams, right? And what the IP team says and things like that. Um but even when
071it comes to um incorporating those funding streams of staff into the overall standard that is that's shifting and changing uh moving forward so that we've got to Jos's point a foundational understanding of how we need to staff buildings and departments uh at central office based on enrollment. And then we do that first before we begin to layer where we need additional supports or different additional staff based on needs of buildings. >> Thank you. And what >> I guess a question that doesn't have to be answered um tonight, but I it is my understanding that in the past buildings have had a great deal of autonomy when making a choice about how staffing allocations occur. Um so will that change using this model and are they how are how are um building leaders and uh being
072incorporated into this process? So it will change um it it will change our plan is initially that it will change to standardize us across the system so that we can say if you go to any of our I'm just going to use elementary as an elementary teacher. So if you go to any of our elementarymentaries we guarantee you that you will receive this at every single building. If you go to a different building and there is maybe um a higher need, maybe there's um higher poverty at that building and we've layered on additional support, you may see something different, but we can tell you that in all of our buildings, this is what we're going to guarantee the service delivery thought will provide. That's what that would do. What we have talked to principles about
073this um not all of them, that's coming in December. Um we have had conversations with principal supervisors, handfuls of directors, handfuls of principles. Um we've talked at executive cabinet about it. So the idea is to get as much feedback as we can um to be able to make a decision that both reflects what we want it to be. So a very aspirational this is what our staffing should be and also current reality that we're $13 million we need to find out of staffing. So trying to balance those two is really where um we're trying to strike that balance um right now. >> Yeah. The other reality too that I would offer and we we'll have um these numbers specifically for you next week, but um what we've seen is that um the lack of um
074equality when it comes to a standard across building to building. Um, and what I mean by that, we'll use elementary since we've talked about that for a little bit. Um, we know that there are a number of elementary classrooms that are below 15. Um, now when we look at research, there's no research to support that having a classroom that small actually is of um is advantageous to students, right? Particularly if you don't change your instructional dynamic in the teaching and learning environment in that classroom. Um, now you can definitely say that there's a cap on that and you can't go too large. Um but there is actually some research that would suggest going too small is no longer a classroom um of learning. It's actually a a pull out if you will. Um and so
075so we could talk about the research about that too. But the reason why I'm bringing that up is we've got situations now where in a number of classrooms we've got well below 15 um in some buildings and we've got 28 to 29 in a kindergarten first grade classroom in other buildings. So when we talk about the foundational sort of shift, we actually need to create um and I'm saying this word specifically, equality first and then begin to add on layers based on building needs to make sure that the classrooms that do need to actually be below a standard are getting it as opposed to those just based on geographical location. >> Thank you. Can I add one thing too, Kim? But our staffing standards aren't just they're not cutting necessarily. They're they're standardizing across our
076system. So there are going to be places that it will result in in reductions and moving people around. There's other places where we're going to have to add in staff in order to raise it because our standards to Matt's point, we have class sizes in some of our secondary buildings that are quite large. We need to bring those down. And so the standardizing it across the system allows us to do that. It's not just about reduction. So, I don't want to com completely um equate the two that one's being done because of the other because that's not true. It's just they've come together at the same time. Yeah. And we've been saying for close to two years now with the reimagining education plan that regardless of the zip code that you live in, um you
077will have access to um world class education. So, thank you for being thoughtful. you talked a lot about is staff size the only factor that you're using in this equation or are there other core fundamentals just out of curiosity and I only bring that up because I do feel like there are some differentiators among schools that need to be acknowledged and like for example some resources I I know that there was like every school was going to have a community school coordinator and then it was like some schools are going to share a community school coordinator and I feel like there like there is times when equality just isn't isn't the right answer. So, I'm just really curious if there are some other instances where maybe resources actually need to be more allocated to other
078schools versus to every school equally. You know what I'm saying? Like maybe there are some schools that do deserve a 15 person class size like >> Yeah, I think lower performing schools. Maybe they actually should have a smaller class size, >> right? Yes, we agree. I think um I think we're saying the same thing, but I think what we're saying is is we need to um what's the phrase the cart before the horse? I get lost in it. It's the horse comes first. We need to create the foundational equality so that we can identify the inequities that we actually need to address with additional supports and staffing. >> Okay. I'm glad there's a lens. Just wanted to make sure. So we have shared the the five-year plan what the budget process is with the challenges
079and the choices that we need to make the cost drivers the staffing changes that we we just discussed. Now all of this is definitely a caveat on a few things that hopefully the the new cost that we are dialing in, we stick to those new costs and no new costs come in come in into place. If they do, that'll definitely impact the staffing changes that we are dialing in. We will have more more idea as as we continue meeting with the board and presenting sessions as to where we are tracking all those staffing changes. So those are two big caveats I would just like to highlight as we are getting into the and this is round one of the budget discussion and as I had mentioned there's a lot of assumptions over here which we'll
080keep fine-tuning as we as we move forward there November 25th if there's any clarifications needed from what has been presented today we are more than happy to address if you get an email in advance it'll definitely help us to prepare otherwise we'll try to respond to it as as as well as we We'll cover the staffing standards. We'll cover on reimagine education and the geo bond and pepple and sale. So that is the plan for November 25th which is next week exactly a week from today in in the board meeting. But the goal tonight was to really sort of establish sort of the context um and uh the challenges in front of us um that include also um some assumptions and some cost drivers that we're looking to to turn those dials not only for
081FY27 but beyond and to establish sort of a a new process right a process that is around that context that challenge but then talk about um previewing like where our choices are uh and our decision-m points and um the impact s of those decisions um for our students and for our staff and our families. >> Well, thank you both. Certainly appreciate and Josie, thank you for the presentation. Uh and certainly appreciate you keeping it at a level that's digestible for us. Um some of us do not work in this every day, but also for our community. You know, we are certainly making efforts to be more transparent with the community and I think budget and finance is a big conversation for many of them to better understand. So, thank you for keeping it at that
082level. I am going to uh maybe go around and see if there are any questions from the board members. We'll start online and then we'll end it in the room. So, any of any board colleagues with any questions or comments um online? >> This is Jackie. I um thank you for this. Um a comment and a question. Uh how certain how are you planning to navigate for potential cuts to federal funds? because that's I know you're talking about federal funds at one of the future meetings, but this factors in does this factor in any cuts to title funds, specifically title one? Um and then that's the question and then just the comment is um as we as a as a district um have chosen to invest in prek because we see that as a very
083smart investment. how much of that money is actually general fund dollars uh whether it be in transportation or it be in staffing. So in essence money that's not subsidized. Uh and I think just it's important for the board to know what that number is as we continue to make investments in prek which are outside of the K to2 general fund mandate. So that's question and comment. So the interesting thing Jackie is I know prek is one of the legislative priorities which the district has unfortunately the enrollment of prek is declining from last year to FI27 and I'm going to speak from memory somewhere between 40 45 students have reduced and last year that reduction was three students. Are we investing in preK? Yes, but we are having discussions whether we need to increase the investment
084or keep it where it is. If I had seen the trend of increasing enrollment, the discussion would have been more to invest. But I'm open to thoughts and comments. I just want to make a comment which is it's a legislative priority because we want the state to pay for it. I think in resource constrained environments I just want to make sure the board has an opportunity to have that conversation about priorities because um I think it's I just want to make sure that there's visibility for the incoming board and the current board on that topic because it's very important but we have finite resources. >> Yeah. So, um, your your specific question was regarding how much of the prek budget is being supplemented by general fund dollars. Um, and so we'll unless we know the
085we can come back to you with an answer on that on the very specific answer. I think your other comment was about title and are we factoring, you know, potential cuts that we're going to see from um from the federal government and yeah, we're having those conversations, but none of that obviously, as you know, is is definitive yet, right? So, we are accounting for that um through the lens of um knowing what we are specifically funding through staffing andor programming with title dollars to begin to have a plan B should those funds be cut um and be cut dramatically. Uh which seems to be a a persistent and a consistent sort of um threat um if you will. >> What's the t total um title? Is it 8171 million? What's the total title dollars? >>
086I'll have to look into the numbers, Jackie, but I think it's somewhere between 35 to $45 million. >> Okay. Got it. >> So, it used to be a higher number because we had esser funding at that point in time. >> Okay. The other other thing on federal funds is which is a big question mark is our state has sent a proposal to the federal about block grant. >> Mhm. >> And we we don't have any idea what exactly does the block grants entail. Is it the same dollars that the districts are going to get or this gives an opportunity to the state to redistribute the same dollars which the state gets in some other form or fashion to all the school districts always >> or set priorities right >> or set priorities absolutely right >>
087those are large unknowns at this point in time >> thank you but but but very relevant questions Jackie thanks Jenna, Anna, or Patrick >> questions for me? Just thank you. >> No, I'm good. Thank you for this presentation >> and for me. Thanks. >> Um, just a couple of comments. Um, and to echo Skyler's um, comments regarding our community is looking at this, if if someone were to grab this presentation without listening to the meeting, um, I think there's just a couple of things that could be added to the slides. um if they were just looking at the the presentation itself, particularly on slide 11, there's a graph or a chart there with a huge amount of information and none of your axes are labeled. Um I understand this chart. I don't know that everyone
088would without appropriate labels. So, I would just offer that be added into the presentation along with starting on slide 14, you've got um there's nowhere on this slide to to show that these are assumptions. Um if we get 2%, if we get 1%. I know that's kind of a theme throughout the entire presentation, but if we could just label it as such so that anyone reading this would understand that it's a an if and these are assumptions and even in the areas where you said this number will definitely change. This is just a placeholder. Let's put that on there so that we um can share that with our community, please. And thank you. >> Absolutely. >> You can hurry up. >> No, no questions. >> Thank you. And my final uh comment or recommendation similar
089to Kim if someone were to uh pick this up without knowing on the I have a different uh slide deck. So I think this is maybe slide number 9 2 4 6 8 9 maybe. >> Sure. Okay. This is the school finance is complicated. >> Yes. And it is uh if there were if if there was a way to just define which what each of these funding sources actually is versus um so for state aid what is state aid versus just being in a bubble um I think would be helpful because I I'm going back now and I'm even questioning do I actually remember and some of them are implied but um the funding sources and then the fund account if it could be some kind of a summary or something there or a key
090that would be helpful. um I think to the general public and then also for reference when I look at this again next week. >> Absolutely. We can absolutely do that and and that is what we typically cover in finance 101 over there where we define each and every fund and things like that but we can definitely add some kind of a brief key in this deck as well. >> Thank you. >> Well, thank you and as mentioned again, thank you so much. This was really helpful and I know this adds a little bit of work to what you were already doing, but I think it's well worth it. Thank you. Thank you. >> Thank you all. >> Absolutely. You're welcome. >> With that, we are actually uh we're not adjourning. We are moving into two
091close sessions. Um and yes, we're going to take a recess before we move into close session. Thank you everyone for joining us and board members online, there is a separate link that Rosie sent out for the close session. Okay. Don't join yet. >> Are you taking like a five minute break or a 10-minute break? What time are we reconvening? >> Yeah. Clear the room. We'll come back in in five minutes. >> 657. Jackie, >> I'd now like to entertain a motion for us to go into close session. I move that the board go into close session per Iowa code section 21.5 subsection 1 subsection C which states a governmental body may hold a close session only by affirmative public vote of either two-thirds of the members of the body or all of the members present
092at the meeting to discuss strategy with council in matters that are presently in litigation or where litigation is imminent where its disclosure would be likely to prejudice or disadvantage the position of the governmental body in that litigation. We have a motion. May I have a second? >> Second. >> Miss Rio, could you please take the vote? >> Yes. Yes. Miss >> Marana. Yes. Dr. May. >> Yes. North. >> Yes. >> The motion passes 70. At this moment, I'd like to ask for the door to be closed so that we may begin our close session. >> Toronto second. >> Seconded by Martano. Is there any discussion or questions? Miss Rio, could you please take the vote? >> Yes. Moso. >> Yes. >> Mr. Dick. >> Yes. >> Miss N. Miss Marana, >> yes. >> Dr. Mayberry,
093>> yes. >> Miss Norris, >> yes. >> The motion passes 5 to zero. And with that, we are adjourned at 8:54 p.m. Thank you, everyone.