001All right, go ahead and get this uh started. Sorry, we're a little late. Technical difficulties. We were postponing workshop for fiscal year 2026. When building the budget, I work with Mr. Gilbert, we basically did some estimations on what we think is going to happen for next year. So, enrollment is budgeted at 3,550 and that is the same as the budget for uh the year we're currently in and our current enrollment right now is 3,568. Sport units are budgeted at 164. Impact aid budgeted without civilians. No emergency levy budgeted. 7% increase for healthcare. That is for the medical side, the medical health insurance. And then utilities have increased across the board. Um building supplies will be reduced as an as enrollment has increased. And then all staff were given the step and a 2% increase on
002the salary schedule. Next slide. The financials. Um the financials are sent out each month and are broken down into two sections. Uh the first section is the balance sheet. On the balance sheet is the assets that is cash in the bank investment state pool receivables district will get up to 60 days after year end. inventory, prepaid expenses, our insurance premiums that we pay at the beginning of the year. The next section on the balance sheet is the liabilities that consists of vendor invoices that are unpaid, salaries payable, taxes payable, benefits payable, and tax revenue the district will receive by August 31st. The bottom of the balance sheet shows the fund balance if we were to close the door the closed doors on March 31st since that is when that financial statement is done. The second
003half of the financial is going to be the income statement. First section of that is revenues that shows revenues from all sources. The second half is going to be the expenses that will show all expenses from all categories. And the bottom of the income statement shows our financial position. Next slide will be operations. The district staff's employees based on enrollment. The district gets funded based on average daily attend attendance, also known as ADA. You'll hear ADA quite a bit during this presentation. When children are absent, staffing needs to remain the same. ADA is the most important during the first reporting period which ends early November. Next slide will be the support unit calculations. The state department of education gives support units based on average daily attendance. There are different attendance divisors based on grade level.
004Public school support unit tables on the right. This breaks out the state guidelines. The spreadsheet on the top left is an example of how support units are calculated. And this is one I I basically just I just kind of put together just kind of give an example of of how the ADA and the attendance advisor equal the sport units. ADA divided by the attendance uh divis divisor equals the sport units. And then the table on the bottom left is the allowable staffing for each support unit the district gets. So it's 075 administration, 1.021 instructional, 079 pupil service, and 375 non-certified. that somebody's part. Next slide will be the average daily attendance comparison. So I made two compar comparisons of enrollment in ADA. The left is the FY19. So this is going to be before COVID
005kind of when our enrollment was at the highest it's been in a while be that versus the FY25. and the right is FY24 versus FY25. So both show a decrease in average daily attendance and that affects our support support units and our funding. I have a quick question. Yes. For a kid to count for a full day, how much of that day do they have to be in the seat? Is it all eight hours or is it hour? I think till about 1:00. Yeah. Okay. Yes. because our our early release days, those count as a full day. Okay, next slide will be the salary based aortionment. So, one of the things we get is our entitlement. This is the district's base support. FY25s, we we got $43,622. FY26, the entitlement is going to 45,373. That
006is an increase of 4.01% for the FY25. Of the $45,373, 21,91 is designated to healthcare benefits and this does not cover that health care cost for the employee portions. Next section is administration. The administration base support is changing this year. last year was $44,446 and it is increasing to 46,668. This is an increase of 5%. The classified base report is changing as well. Last year was 39,966 and it is increasing to 41,964. That is also an increase of 5%. And then the certified base support is on the table on the right. I'll show all cells RP1 through AP5 have increased. The average increase is 5% as well. I just want to make note that the administration classified certified yes it is going up 5% but that does not equate to actual 5% of of what
007our our salaries and benefits are. So there's a you'll see in a in a few slides coming up there's a very big gap between what we get what we get reimbured compared to what we pay for salary. So next slide is going to be the foundation payment. The foundation payment sheet is on the right. This breaks out all of the state funding in the basically the first half of the page. So we get five payments throughout the year. Um, do those payments fluctuate based on the ADA? We get a payment on in November, sorry, get payment August, November, February, May, and then the final one in July. On that first half right there, there is a there's a line item for transport trans for transportation and that is paid out in February for the previous
008uh school year. the second half or starting on line 18, those are going to be the special distribution payments. It is other support um known as the special distributions. And then these funds have specific uses based on Idaho code and those are all restricted to those purposes. Next slide will be the aortionment. So those pages in years past I basically have taken the entire page and I kind of put on a sheet right here and it's been really hard for you guys to see. So instead of you know turning it sideways basically what I did is I just took um screenshots of information that's that's that'll be useful for you guys. So um the first section shows the allowable full-time employees. So that will be column F. So if you look, I'll use my laser
009pointer right here. So this is going to be column F right here. You kind of see on your guys's thing has A through G. So that is what we get reimbured from the State Department for. And then column G, the next column over, that is what our actual full-time employees are. And so right now our certified staff are 12.63 over the allowance. So that means we are over staffed compared to what we get reimbured for. Classified are 25.30 overall allowance and then administration is 82 overall allowance. The second section is what the state department pays for salaries. So if you look at my pointer right here, it's going to be basically these two columns right here. The column N is is what the they pay. Column O is what is what our actual salaries are.
010So, the district pays $4,416,237 above the allowable amount plus $99,892 for FIC and then the district amount will increase when the sport units drop, which is why which is why the number has increased. Um, I basically did the math of what it was last year compared to this year and we're paying the district's paying um $1.4 million over what we were last year. Next slide is going to be impact a sompact aid is funded by students with mil military connections. This includes students whose parents work on non-military property. A students have parents with military connections that are living on base. B students have parents with military connections living off base. And then C students have parents working on federal property and then living in town. I don't anticipate any funding for C students. We haven't
011had those in a very long time. Um I'm sure the last time was we have kind of since I've been here long time. Um, I budgeted $1,250,000 based off of what what we've done this year and basically off of the um for student count for at that date, you know, in October. And then I don't we don't we don't know when payments are going to come in. They kind of just come in at whatever. Uh we've so far this year we've got 90% of our payments this year, but there's still that 10% that's out there. with the impact data. I know there's been a lot of talk about the cuts to the budget for for what's going to be left of the department of edge and they're just like a whole lot of our money
012being cut. Um we anticipated more than $25,000 coming off or we heard how much they're going to cut. I know that with the CR they cut this current spending minus 15% from what they had for 2024 for the rest of this year. Have you heard anything projections for next year year? I have not. Right. Next slide is going to be the certified salary schedule. So 80% of the district budget is made up of salaries and benefits. The table on the left shows the certified salary for FY25. It is based on the career ladder the state department of education has implemented in prior years. You know the table on the right shows where the staff are placed on the career library. Next slide will be the benefits. So there will be a 7% increase for the
013healthcare benefits as what was agreed upon when we um when we originally signed with the St. Luke's health plan. Um first we have updated its rates. Um it did not change this year. There's there's been changes the last few years that did not change this year. So certified staff were 13.48%. And then classified are 11.96%. So district must pay 21.13% for certified and 19.61 for classified for the district portion of FICA and person above the allowable salaries. And then there is there were some changes with the uh the first sick leave retirement. There is no sickly retirement due at this time by the sounds of it. We'll start paying again in July of 2026. Next slide is the purchase services. So purchase services what I do is I compare the FY24 actuals. Then I run
014the report and do the what we have for the year to date. Generally I do these around when I start the budget around February March time frame. So I'll take whatever month it is I'll divide what we have year to date by the number of months and I'll times it by 12. That gives me uh what I estimate we're going to have for the for the total year and then I compare that to what we have for the FY 25 budget and this leads me to the FY26 budget numbers. So the repairs category is going to be maintenance to building and equipment. Contracted services going to be services performed by outside agencies. Other is professional technical services like our shredding services. Therapy services are for the special needs students. Utilities is going to be power,
015water, sewer, trash, gas. Then travel is going to be mileage, extracurricular activities, athletic competitions, and transportation. The next slide will be the supplies. And the same thing with supplies I did with the purchase services. Compare 24 actuals to 25 year date annualized debt. We have for the 25 budget 26 budget. Maintenance is going to be supplies used to maintain the building's equipment. Fuel is going to be fuel for student transportation and district vehicles. Building supplies are supplies associated with each location including student supplies. Copier supplies are going to be supplies associated with the copers. things like paper, textbooks, licenses going to be curriculum, licenses for technology, and then others going to be the um safety, what we spend on the many buses at the high school and then miscellaneous supplies around the district to operate
016at. Next slide will be the capital capital budget is the same as last year at $260,000. The maintenance budget is going to be $70,000. Um, anticipating needing some newer vehicles, newer equipment, mowers, that that type of thing. The budget for the district is going to be 150,000. Um, we do have a bus that's on order right now. I believe it's going to be done around August. That was approved by the board a while back. Um, the goal is to replace the existing high mileage white buses. way we can use those instead of having the contract to be followed with expedition basically to save us some money on that being salthletics is not reimbured by the state department and then $40,000 in capital for athletics there's multiple areas around the district that be for that next
017slide is going to be the other slide this is our the majority of it it's insurance this covers the property insurance, liability for the district and for the staff, a supplemental insurance for athletics. This is allows us to participate in athletic events. And then if we ever have any claims with our insurance, things like vandalism, damage, any lawsuits, we have a $5,000 we have to pay for that. The next slide will be the transfer. So every year I we have to every month I transfer money over to pay for FIP and hering for food service staff. Basically a federal law that requires us to those items cannot be paid for that out of the food service fund. So then this right here will be the proposed FY26 budget. It will show a total revenue of
018$32,8978 or excuse me $897,189. Total expenses is $34,683,4 with a revenue under expenditures of 1,785,815. Any questions? That means rather [Music] assuming this real mean that this seemed all real and this was actual that 1.7 funds. So, we do have fun balance. Um, we generally like to have um three months worth of expenditures, which is around $10 million. It's $10,800, $800,000. Um, that's basically guidance that the auditors have recommended that we have. So, we, you know, we have basically that $10 million right there. And then we're also looking at, you know, the basically 20% for the project 6.6 million still. Yep. We have we have for one more year for next year. I believe we're going to run that we'll run that in November. It doesn't pass in November then we have opportunity for May
01927, right? Yes. 272. Okay. I'm kind of new to this, so I'm going to ask a question. Okay. So, before you do that, the board has Yeah. The board has to allow you to because there's no public input. Okay. So if you would just ask the board if you ask questions, you just need them to be named. I just I just wanted to ask a question about salary increase. Okay. So the teachers are getting it going to get 2% plus their next year but administration and certified for classified are getting 5%. No no 2% across the board that was that was that was on the assumptions page page first I saw that I saw that then I also saw where You might have saw where it talks about a funding. So the the state increased
020the funding by by 5%. The base reimbursement rate for administration increased 5% from Yes. So that's what is that? So that's basically what what we get for each support unit. So for each support unit we get and I'll bring the slide back up right here so we can see it. Basically for each support unit we get um $44,446 and then next year it's building up to $46,668. That's is what we get per support unit. That's not that's not a salaries and benefit thing. Okay. So So the when the easiest way to look at it is the state when they when they increase funding, it's a distribution. It's not a it's not a salary increase. It's just how they increase distributions to the district. So when they said 5% this year for all categories, all that
021means is they're distributing 5% more for classified, certified, and admin. And then obviously certified goes through the negotiations process on that. What we budgeted for is a 2% increase. So when the state says people are getting a 5% increase, all that means is they're distributing 5% more. So that the best way to look at this is on Levi's schedule there. If you look at certified career ladder change, that's the state's distribution. So where our people fall in that, that's how much money we get for those people. are actually our salary schedules. The best one is to look at the 185 down there at at the maximum dollar amount is 72,827. And then if you look at our actual salary schedule, which is on page 13, our actual pay is uh 8,549. So what the state
022distributes does not match what a district's pay. And so to cover that gap that's there, typically districts use are the discretionary funding that we receive from the state or in our case we use our supplemental levy to help offset that and that goes for all categories that are there. Could I ask a question? Could you give me the definition or an explanation for support unit? Sure. So, a support unit is what the state considers to be the the average support provided to a classroom. And so, it's just a it's a funding mechanism. So think of it as 1.1 teacher recipients is what they would consider a support unit for funding. Okay. So then the calculation that 164 number that is that happens to me back up there. Thank you. Y that is um the number
023of units I'll call teams 1.1 teachers. Correct. So then the state based on the the different advisors that are there. So and again that how they calculate that varies by rate level that's there. You know, I think the thinking behind it when they originally did this, you know, this funding formula is, I believe, 40ome years old now from the state is that they expected that your younger grades required more support. So, the advisor was different and then as kids get older, there's that advisor change to it with it. So yeah, it's just a the the way the state in their opinion equitably distributes funds to all districts. So they take our enrollments by district and then get the average daily attendance of that enrollment and then they use those same divisors across the districts to
024distribute funds to schools. Why is the ADAS different by level? You know, again, I think when this was put in place that long ago that So, this right here is also I just put numbers in right here for the ADA. Okay. Just for an example, just to show how the support needs are calculated. So that's not the actual number, but that that divisor that's that's really And so you look at elementary uh 1 through three. I'm sure there was a time they thought that this was like the average class size in the state of Idaho when we did that. So the kindergarten was big, but that's back when kindergarten was running morning and afternoon kindergarten. So that number will keep it still one, but then as kids get older, they increase those classroom sizes. It
025does not pertain to that at all today. And I that's just uh the the formula they've used and they they've tried over the years to change how they distribute the funds, but they've never come to a an agreement legislatively on how that that formula should work. We do think next year they're probably going to put in a different funding formula. Um our big issue is the the attendance portion of this. We staff based on enrollment, not attendance. And so you hire your staff based on the 3550 and if kids miss X amount of days that that impacts that funding. So the state will only fund us for the actual time that kids are in school. But I I think the easy way to look at it is if the students there whether they're there one
026day or 180 days, we have to have the staff there to educate the kid. We don't get to adjust staffing throughout the year. So average day attendance I saw here was 91. So realistically, we're losing 10%. Those kids aren't showing up to class. We still have to plan that they're going to be there. And and John, that's that's kind of a product of precoid, you know, our attendance rates were much higher, like probably 95 94 right here. Yeah. So is there any difference in the reason for non-attendance or they don't care? It's just whether there's a from state. Yeah. From the state, it does not matter. It's just if a kid's in a seat that day. And so that's we report out, you know, in our our IC program takes student attendance every day and
027they average out your average daily attendance over the the first 18 weeks of reporting. Is there ever a time day or month or week where you have an actual 100% attendance? No, I I don't think that ever occurs because you're So you think of enrollment. So when parents are enrolling kids, you know, it's not that they're coming there on the first day of school and enrolling. They're enrolling, you know, the week or two weeks prior to that. So you base class lists off of that. And even on day one, you have kids that are absent, whether they're sick or, you know, not back yet from summer break. And so, you know, I I I wouldn't venture to say what the highest we ever would be, but I would think that 96 97 might be a
028really really good day of attendance that's in there. Okay. So, if if that's an I mean, it seems like a very logical and real statement to me. So, if we were able to calculate, and I'm assume we are, to figure what that number is, why couldn't we budget based on that number instead of attendance? I mean, instead of uh enrollment. So, we're we're not we're budgeting on average daily attendance. So you take your your we're taking our enrollment what we expect and then we're we're using our average daily attendance from the previous year to calculate that percentage. So what Levi had it on there? I think I know what you're saying though. Why not? Why not? It would change it would change our support unit numbers. Yeah, I see what you're saying. We're we're budgeting
029for we have to budget for 100%. Yes. Of is that the environment though? Is that it's the reality you have to So when when we have a kid enroll we by by the time you hire all your personnel. we are basing it off of what is our enrollment estimate with it. And so if those kids don't show up on day one, let's say they don't show up the first 10 days of school, we drop them. But the reality of what that looks like is it's not enough kids where you can go, we're going to go into the school and say, I'll just say we're going to use East first grade. We anticipated 5 kids across four classrooms. So, we built and staffed for those four classrooms, but only 98 of those kids actually are there.
030We can't go in and take that 98 and reduce our staffing that we built it based on a full attendance of 105. Not enough to reduce it by classroom. You'd have to do it if you were ever going to do it, you'd have to do it as a districtwide. Maybe you look at all the first grades and go, "Now we're going to eliminate one first grade districtwide and reassign all of our staff at that point." And so the disruption that causes is pretty tremendous. So then students from school Yeah. and moving the staff, you know, the first, second, third, fourth day after school and then rebuilding those classes again. And so it it's we don't ever run into a situation where you lose enough kids from enrollment day to actual start day to adjust the
031the staff. What we typically do is our enrollment we're very conservative on and so we try to try to estimate our budget based on what we feel is going to be the minimum number of students that we will have because we could go the other way with it too. Instead of saying 3550 we could budget it on 3700 kids come out with higher numbers on everything. But we we know after you look at this over the last five or 6 years, the trend in enrollment that we see how it starts the year up high and decreases throughout the year. We're able to get a pretty accurate look on that. And so that's where the that number comes from. What typically happens though is we end up in a situation where we might end up with
032more kids than that 3550 and now we're going now we've got to find another teacher. So, we've always been very conservative how we budget based on that attendance because there's so many variables that are there. And the last thing we want to do is be overstaffed when we can control that portion of it. But we also don't want to start the year going, we're going to need three more teachers at, you know, North Elementary because we didn't anticipate this increase of 100 kids. James, how come it's not figured at enrollment versus attendance? That is a state issue. They changed it. So, right. So, precoid it was 88. During co they went with enrollment which increased funding. So basically everybody's ADA was 100% because they funded you based upon your actual enrollment of kids. And so
033after CO we we thought we were going to stay with that that direction. That was a push that came from the state department of ed too was to maintain that funding because again whether that kid's there for one day or all days we have to plan for that kid being there. And so the legislature decided that they didn't agree with that and went back to the old model of ADA which negatively impacts all the scripts and the ADA is only a snapshot at the beginning November. Yeah. Through November of the beginning of your what you have it's not what you have for the whole year. And we don't get to pick and choose the days or the weeks that we give the statement. they take it to that time period and if it's great we're
034good. If it sucks then our budget gets tight. So what you're if I understand this you're saying that after November whatever it was first after the state's cut off date if your attendance changes your income doesn't right your your fund your payments based on that sorry window I look at money coming in as income sorry so your um so if your attendance goes up you we have so if January with the new semester we all of a sudden have 200 new students we don't get any more money for that but you're still have to go to the 1.1 and that means you're going to hire some more people you would I I can tell you that situation has never occurred where we've had an increase typically enrollment is at its highest the first week of
035September and then over the course the the remainder of the year, you lose kids throughout that remainder of the year. So, you know, like this, we're budgeting to start at 3550. We could be down to 3,400 by the end next year. It it you you don't looking at our enrollment over the last 20 years. There's never been an increase in the second half of the year from first. All right. But in that situation, if it did, like let's say we got this huge group in, you would you would have to hire additional staff that would have to come out of you fund balance or discretion. So if we build another thousand homes out here, you're going to Yeah, but you're not going to fill them all in. I mean, it's it Yeah. I'm asking questions
036not because I want to know what's real or not real to expect. I'm just so I can learn the system the process and and those so those homes the the factory you use now you factor in new buildings part of Idaho is 2.5 residents per house. So think of it as basically a half a kid for each new house that's built. So you know the the talk even at a thousand new homes is not as huge in loss 250 kids at most. We count kids as fives and we count instructors as 0.1. So it's all right with me or certified career ladder that's not matched. is going to be what the state reversed us. So the classification is what I this is our district classification. Yes, that was that was basically agreed upon in uh
037we did the salary schedule meeting um basically our committee to design that. Um the first part is the residency and there's professional and then on the well the state side there's the professional and then there's the advanced professional. There's a lot of criteria that the teachers have to meet in order to to move from professional to advanced professional and then uh that one right there is going to be RS which basically residency going to be professional. Then once they've had the um bachelor's plus 24 and the masters category and across the board we're hiring. Yep. And John, that's pretty typical outside of really small districts. So that career ladder state one that has on. Hey J. page eight. Yeah. So again that that one it was a distribution model. Most districts have additional cells above
038and beyond to this. Some parents kept the traditional model that used to go like bachelor's bachelor's plus 20 masters masters plus 20. When the career ladder came about a lot of districts went to some form of that. And so, but there's very few that follow exactly the state career ladder and very few that pay exactly what the state reimburses. There are some, but you know, we base our ours on trying to remain competitive with the area. Not just Treasure Valley, but Magic Valley and we have a very competitive certified Curry Lottery. I would say we are in the upper half. And if you look at our statewide problem, I'd say 15% on public is the purpose of being at that higher level to entice someone to come here. Recruit recruiting, but even more important, retention,
039like keeping our people. That's, you know, we we know we're never going to compete with the Boise School District. Like their their schedule, I think, maxes out right now right about $90,000, but they have a different way of funding um because they're uh considered one of the original charter districts in the state. So, they can basically impose a tax on the community without a vote. And so, well, yeah. So they and they'll tell you like they're in a unique position. And so what we try to do is be very competitive with like Nava, Calwell, Twin Falls, Jerome, those areas. And and really I think I haven't looked this year, but I think the only ones that were above us were West area. How was last time I looked too? page 12. Yes over the alliance.
040So the allowance is what the state, right? But we aren't based on the ADA formula. That's how many teachers we earn. Yeah. And again, it's based on that same formula and I I can tell you like I don't know of a district that show you the adjusted staff allowance. That's what we get first. That's what we currently have. So I basically subtract the two same there. And again, there's this very few districts that run just exactly the staff, you know, that's it's pretty unrealistic, especially your support staff. You know, you look and go, I can't imagine eliminating 25 classified staff visit and thinking things. So, so that was my my next question. Yeah. Is that looking at statewide averages for districts? Is that Yeah, normal. Is that I would say we're probably actually on the
041low end or on the again below average. Yeah, I I would say we're below. I I know we're below average in the admin. We're below the allowance, right? And we're And that being 12 over for our certified were below the average in this area as well. So that's one of the things that with districts that are having some issues right now is they they staffed heavily with federal funds during COVID where we were very restricted on that. And so that's what you're seeing is districts values in a bind right now having to eliminate those overages to get closer to the state average that state allocation, but they still won't be at that number. You know, I look at that and go, I don't know how you could eliminate 12 teaching positions in our district and
042not have chaos as well. Um, we have adjusted staffing each year. We, that's one of the things that we look at is, you know, we're going to set a budget, find what our enrollment is doing. We're going to make staffing adjustments up or down that fit within that monies. You say they went down again this year. Was that forest monies? Yeah, federal forest. It it was 14% of what it was the previous year. So it went from it was 280,000 to 40,000. Nope. That that so he was talking about on the next page right here. Yeah. But it's Yeah. See that right there? So on another page right there, these are all the special uh funds whereas on the main page is going to be just just a general. So that's just that's just 100
043the general. So the federal revenue is going to be the impact. So this is okay. I guess it says that question. And then federal funds right now there we got our information this week on title funding. All of that's going to remain flat. the exception and think of migrant which is going to lower that I think so budget shortfall this if not no those are all those are all restricted funds that have a specific focus set Abraham for example for service basically the board has um restricted that say to our technology program so basically know anytime you need Chromebooks or servers that type of stuff what it's used for [Laughter] Look at that. It's okay. I ask question all the time. no longer exist. Take them off for next year. I just they're still open
044um on the books. Haven't had deactivate those accounts yet. Okay. So since they were active on the general to add that 2% for the salary increase in conceal at least for the for the first certificate is pending negotiation correction is the school district funds that That mean base. Yeah. So, we're were waiting on We had to resubmit to Congressman Simpson's office. the funding was not included in the continuing resolution from March. So I resubmitted the grant for that. We have priority in that grant process that I'm trying to approve last year. So they will when Congress meets again hopefully this time it's not a continuing resolution but it's an actual budget and then if they make it through that then it'll be part of the continuing budget. So best case scenario with that is we
045would know in August if that's there more likely it'll be sometime in the fall and then once that action occurs congressionally then it's a couple month late until it's distributed but you know our contacts with the congressman's office are confident that it's going to occur and so we're going to take them at their word with it If it for some reason doesn't, then that's what we're going to be looking at a big chunk out of that fund balance to to finish that project. So, we're through the design phase. We've been approved for that. We got official approval on that. So, we'll start getting reimbursed on our existing costs from design on that. And so once we have all the design and bid documents ready then we move into the construction phase portion of the Take
046a look. Second out of here, too.