001the time I we had to finalize these forms, we did not take into consideration the 26 legis changes, but I'll cover that in a second. And then we'll look at the uh upcoming budget conversations for for 26. So the legislative changes that were approved um in the state budget. So that was a a pretty interesting session. I would say there was there was a number of proposals from the Senate that didn't agree with the house budget. There was a governor's uh agreement with the Senate. They didn't agree with the House. Eventually, both the House um kind of agreed to the Senate and the governor's budget, which included um a lot of positives for K12. So, K12 as a whole remained relatively untouched. Uh this is definitely a win for uh K12 um considering um a
002number of other programs were cut um in this legislative process. So some of the wins for K12 were the onetime capital and free and reduce increases from 25 uh that were one-time funding last year were included in the 26 budget uh this year. I did not take those into consideration when um preparing this proposed and adopted budget. So, that's going to be when we go to revise our budget, we're going to have approximately just under $60,000 that we can add in because of that uh legislative appropriation bill. Now, that's a good win. I did include the 2% inflation increase, so that is included in the budget. Um, and then another one was the aggregate expenditure limit. I know I've mentioned that several times, but that's the antiquated 1980s uh limit on on K12 expenditures. The
003district's uh K12 as a whole has been exceeding that every single year. Um, and so the legislature now exempted that for 26 and 27. So it's a two-year exemption that allows us to budget fully to the state appropriated budget. and not have to worry about any cuts. In addition, the prop 123 uh this was also a topic of conversation at the legislature that was absorbed in the baseline budget. So that's another uh positive 35,000 that I will need to add in December when we do the next budget. Uh so some good wins for for K12 and then they're you know relatively they're gonna they're going to help Aaho um with the next budget revision. So if we look at the next slide uh this is the same from the proposed we're just adopting that that
004budget limit. Couple couple things of note. I again increase the base level amount by 2%. um the the 51 113 that is the new base level amount per student that includes that includes the new percent inflation level increase. Uh we run the formula out and and we get a revenue control limit. So this is your state and a formula budget of 3.5 million. We add in your carry forward. Um, right now we're estimating a conservative 685,000, but as we reconcile the fiscal year, we're trending we're going to be above this. So now again, the additional budget capacity for the district when we do a budget revision December. So we have a total budget of $4.3 million for the 26 school year to start. On the capital side, um, pretty simple formula here. the the 269
005is your state approved budget. The 776 is what we're anticipating carrying forward. Um we're actually trending pretty close to that amount. So this is pretty accurate here. Uh you get to add on interest earnings to your capital budget capacity which gives you a budget for 26 of just over a million dollars in the capital bucket. um some of the budget initiatives that uh I talked through at the last uh meeting and the proposed budget in that uh we're asking the board to approve um in this meeting is the proposed compensation increases for the 26 budget. So with the certified class we're looking at these groups um individually because they're all eligible for different levels of funding in different buckets. So, the certified staff are eligible for increases uh through the classroom site fund. That classroom
006site fund uh bucket has about $1.3 million in it. Um and annually that's increased um exponentially over the last several years. So, we are at a point where we can increase the contribution amount for this and continue to sustain that increase uh for several years to come. So, uh, this $1,000 represents about a 2% increase, um, to all certified staff, the classified staff and admin. Uh, so for classified hourly, um, talking to Dr. So, um, we're looking at some of your lowest um, paid employees. So, some of your pair of professionals, custodians, etc. uh the 2% increase on a on a low hourly paying salary does not move the needle a lot. And so to honor those individuals on the lower side of the classified out hourly schedule, we look we talked about a 50%
007increase 50% increase. That equates to about a 3 to 4% increase across the board when you average it uh for your cost of hourly staff and then a 2% increase for your for your admin. In addition, um we uh myself and and Matt um who've been working as consultants for your district for the last two to three years have looked at uh not only looking at addressing your pay, but looking at your total benefits package um and looking at uh adding two additional holidays for next fiscal year. Um, so you currently as a as a district have eight or nine approved uh pay colleges. As a school district, you guys are about 10 to 15 days behind the average uh throughout the state. Most uh districts offer some uh longer uh days off over winter
008break um to a lot of time for families to spend time with families. Um, so we're looking at adding uh just two days to increase your total paid district holidays to 11 days. Uh, this is just another way we're trying to leverage um the the funding that you're continuing to receive and uh increase the employee morale with uh your total uh compensation and benefits package. So those two days would be December 24th, Christmas Eve, which you did not have off, but talking to most employees, they took that day off anyway using their personal time. And then New Year's Eve, again, most employees take the day off using their time. This would now be a district holiday. Uh then outside of that, we're continuing to build a fiveyear capital plan um working with MCO um and
009looking at leveraging the grants to support some of these five-year capital initiatives. Um as well as some of the other cash control funds like we did with the fence. Uh we use the school plant lease and rental money to fund that fence improvement. And we're looking at additional grants uh to fund a wider camera replacement uh initiative. Um, so this is just some examples of that continuing ongoing capital planning. And so with that, I'll be happy to answer any questions or if Dr. Ser wants to add anything that I may have missed. No, Mr. Hopkins, Mr. more just to kind of reiterate what what what Tyler stated that the the classroom site fund reserve uh he has shared that there's a 1.3 million reserve but also correct me if I'm wrong Tyler about 300 to
010320,000 per year go into that classroom site fund is that right yeah it'll be it'll be going up to 400,000 per year uh in 26 and that's based off the proposition 301 that's the sales tax um uh initiative that is was extended in 2021 to go out to 2042. So these funds are well protected for for the next 20 years uh and able to sustain this this increase. That's what I wanted to point out uh Mr. Hopkins members of the board is that uh I know that the board is always very uh focused on sustainability. So this is sustainable for a good 7 to 10 years or more. So just trying to get creative as far as our M is pretty set, but our classroom site for reserve is is a is a budget source
011that helps which is why we've seen an increase in our base salary for certified just to try to be more marketable and competitive. But uh several new grants like Mr. more said. Some of those grants include um you mentioned the capital plan, campus fence, uh uh the cops grant, uh capital to increase our our technology as far as the security and safety, but also just just to remind everyone, Puma Jed, we've got a $25,000 grant from Puma Jed that's going to go to our architectural drafting program to get architectural drafting tables for the students, but also the AutoCAD software that architects use actually in their profession. we'll have it here uh with Mr. Roma but also for students to use. So they're getting hands-on you know uh career technical education training with that software which
012is very critical. So I just wanted to highlight those those uh those few details but um this is this looks good the Mr. Moore shared with us about the two days the additional two days of district holidays that's a big plus December 24th and December 31st. That's good good news. That's all. Okay. Hey, Tyler. Yeah. So, how Yeah. How do we rate rank? How are we in our compens compensation to our teachers compared to other districts our size? Yeah. Um I think I shared the classroom siphon report a while ago. Um but the the auditor general, the state auditor general compares um basically all districts and they they do compare to uh districts of like size and similar pools. Um if I can pull it up for a second. Um let over the last several
013years you've ranked towards the bottom. Um in all honesty, I'm not sugar coating it. it's you guys typically near the bottom on on all levels of of teacher pay. Um, and so, you know, the these compensation increases that we're doing are are trying to help move the needle up uh to be more competitive. Again, Aaho is isolated, but if somebody were considering making a transition or making a move to Aaho and and pay was a factor, uh you would not be competitive in that sense. So, uh this just here's some just uh some facts. So the state average uh for average teacher salary is 65,000. Um right now um Aaho's average is 55,000. So that includes the classroom site fund and their base pay. Uh so you about 10,000 below the state average. And then
014with your peer districts, uh your peer districts are averaging uh six I can't find the peer district average, but I can share that with and he can can pass that along. But so do you ever foresee a way that we're going to be able to be more competitive, pay our teachers more to where we can compete? I think we have great teachers. I'm not saying we're trying to attract other teachers, but it's sad to think our teachers get paid $10,000 more than other teachers in state. Yeah. I I don't think you'll ever be like competitive with the top districts, but what you can do, I think, is honor the teachers that you do have by compensating them um with what you can do and uh and that will keep hopefully qualified teachers and and keep
015those people um within your district and keep them and keep them from leaving. Right. I think that's there there's attraction which I don't think is really applicable to Aaho considering your demographics and your location but there's also retention and I think retention is is more of what you can speak to and trying to keep honoring what they're doing and and keeping those teachers um uh maintained within your district Mr. Uh Mr. Guthrie, just to kind of elaborate more on that, um our our principal and our well our our team, our new CTE grants team, Des um have been working on that as far as I believe recruitment and retention compensation for the last few years for the new teachers that we've had come in. Men, Miss Meendres, Miss Sano, um Palente, Mr. Romo coming in.
016Mr. Riodone, Miss Kadis, I believe is a title two $2,000 retention and recruitment compensation. So to what Tiger said, the $55,000 and add the 2,000 just trying to get creative with people coming in or coming back so that they come back. And you know what? just just it's we still have to improve, but we're seeing a lot more compensation opportunities the last few years, but we still got to keep working to get better. Anybody else have any questions for him? I have one more that right. So the big beautiful bill, what do you what are you hearing about possible effects to our school district? Yeah, I think a lot of the effects are going to be in the the grants uh within with regards to titled the title one, title two, title three, title four,
017like those grants are uh currently being held by AD right now. um while uh they try to disseminate in the bill like what the funding implications are um I think there'll be there'll be some loss of of revenue in those areas um but I I think there's some opportunity for auto to revisit how we're allocating um those grant resources and and kind of prioritize that um to not see a drastic hit with the the resources that we're receiving. So, it's not detrimental, but it's gonna be a reduction to some of those grants that have been um previously held pretty constant. So, what do you what do you hear about funding for lunches? Is that going to go away? Is that going to stay? Have you heard anything at all about it? Yeah. Uh that's going
018to stay. Uh you guys are also under a different exemption. Um uh and that that exemption is not going away. So uh your your free your your free lunches are gonna you're here to stay for the the time being. So uh that bill doesn't have any implication on on your free uh meal status. So for provision two, which is 100%. So the last cycle that we um in 2022, we're guaranteed provision 2 until 2028. So I have to reapply again. You have to reapply every 5 years. But as far as the the letter and the program that we have right now with the 100% um free to all kids enrolled, it it will last until 2028 guaranteed. So the last thing I wonder about I didn't see anything in the budget for dinners for the
019board. Is that proposed anywhere or if you want to make an amendment? Hey, thank you brother. You're awesome. You're welcome. Thank you. Good evening. U hold on Mr. Hopkins. Um T Tyler's joining us virtually because um is it okay to share with him Tyler how you're you're keeping busy? Yeah. Uh Tyler is the new uh uh CFO in Mesa Unified School District starting today. Congratulations. So we're real happy that he joined us remotely and and uh he's doing well. So we want to just say to him from his brothers and sisters on I 85, great job. Good work. But I wanted to share that's a great accomplishment. You're not going to be busy at all. What was that? You're not going to be busy at all. 51,000 kids. Thank you, Tyler. Very good, good work.
020Thank you, brother. Awesome. Thank you. Thank you. And since there's nothing else on the agenda, I will make the motion to return. I will second. All those in favor say I. I. Any opposed? Motion carries. 4 at 6:22. Next meeting starts here.