001the public hearing to present the 2024 adopted budget for the Yahoo Unified School District per ARS 15-905 B governing boards shall prepare and post a notice fixing a Time million in July 15th at which a public hearing and board meetings shall be held the governing board shall present the proposed budget for consideration of the residents and the taxpayers of the school district at that hearing and meeting this is a budget hearing for the 2024 adoptive budget there is no board action necessary at this time I want to also uh recognize at this point one of our Consultants from True professionals uh Mr Tyler Moore thank you um pleasure to be here um that's been part of you guys present the adopted budget um so uh this is a same presentation I did over the proposed
002um the state asked us to both provided proposed a budget and then later adopted budget in that time typically um when you're provoking and adopting a budget the legislature is still working through their budget cycle um they actually finished early this year the last couple years that has not been the case so we know what the budget changes are for K-12 and so that is why you're not going to see much of a change from the proposed budget that I presented virtually versus the adopted that I'm doing uh today so I'll go over those expected legislative changes I'd say expected because they actually haven't sent it denied yet so there's still other bills in place um legislature is still working actively but those are not affecting the K-12 budget bill which would affect this budget
003um I'll cover what your ml budget is uh go for your capital budget those are your two main budget funds um they're formula based um and those are ones that are controlled early by the state and have a big impact on what they do with the K-12 bill and so that's why we just cover those two um when we get to the AFR and reconciling your fiscal year um we'll talk a little bit about some of your other funds and see where those balances are and go for those but at this time uh we'll go over those two budgets um talk about some of the changes that Mrs soltero has worked on with both Jeremy and myself uh in place for all hope for fiscal 24. and then um again looking at that sustainability test
004for some of those changes so click next slide please so the electrode changes in that K-12 budget bill that I said that was uh passed earlier this this year uh the inflation increase for mnl at two percent um so the state legislature has an obligation to to apply an inflation um increase um that that obligation is two percent they do have authority to go above that if they so choose um as we've seen real life inflation is seven eight percent and probably a little north of that but the legislature chose to just fund uh their minimum obligation which is that two percent so unfortunately while that value of 16 Johnson that's ongoing increase um you know while that's gonna benefit if it should it's still going to be under um what real life inflation is
005so you're still putting a shortfall on the district's budget um because all your supplies and services are seeing that realized inflation increase or is the state still funding us at the two percent so um well we'll take it right we're not going to be uh Beggars but um the state's setting districts up for failure by not um increasing to the actual real life inflation so this has been the trend um for the last 10 years so it's unfortunate um but you start to create a trickle effect when you continue to under um um for inflation and it creates a bigger Surplus Gap when you try to go to the purchase services that are no longer at the cost at which they use the cost and you have less money to work with so um so
006why do you think that is I think that is um in the state of Arizona public education is not funded it's not uh budget priority for the students just a fact you see a lot of emphasis right now on on privatizing education you see vouchers being incentivized and prioritized Arizona ranks 48th in the country in terms of K-12 public school funding so um unfortunately when you have a legislation that's majority um against opponents of public education this is what you're going to get the bare minimum of funding so that's the harsh reality of what it is so um I can go over a little bit later I'll talk about what other districts are doing to take the kind of into their own hands and um make sure that their schools are being funded appropriately for
007the initiatives that they have in place so uh but moving down the list uh the shift of results-based funding was also legislative legislators changed results-based funding was uh additional funding like into the different bucket based on uh testing scores so it used to be easy Merit I think that's an easy PSI um and so that those testing scores districts were provided basically additional funding for high achieving test results they basically it was a government reduce the initiative Governor Hobbs came in said no all schools should be equally not based on achievement so that funding is now moved to the base of there's no additional funding based on your testing testing so while you're still going to test all that funding is just going to move to the base and so high achieving districts um got
008negatively affected a loan shaping District got kind of brought up to the medium so for Ajo that value was 31 000. that's gonna be ongoing funding it's approximately 0.9 of of an increase to your budget so one-time funding increase um the state had a surplus of one ten dollars and so they they chose uh one benefit they were behind us that K-12 got was to push down some money of one-time money uh to the shirts throughout 300 million dollars Statewide and so for Auto time funding um 139 000. um again that's one time um and so we have to be really careful how we uh allocate those funds uh it's not ongoing so you want to avoid any Personnel increases with that particular bucket so so I'm assuming that the Ohio unified school districts piece
009of that pie was determined based on number of students in the district yeah uh based on number of students and then yeah when you get down to it uh at 300 million you're doing those pretty quick when you start talking about the bigger districts in the state you can choose how do you find Mesa so yeah 139 000 a nice chunk of change uh one-time funding but um again one time the last one down there um 20 million dollars was incorporated Statewide to increase distributional assistance which is your which is your Capital funding um that 20 million dollars equated to about five thousand five hundred dollars uh ongoing funding increase there but again you know not a substantial increase in terms of when we look at the grand scheme it's like go to the next
010slide so looking at the m o budget again this this budget is responsible for paying your personnel your benefits and most of your supplies in your District um your budget Mount so your formula generated budget amount this is taking your number of students that you have I'm seen by the pupil amount that the state has and then I didn't break out all the group b ways if you have a special need Student yell out there's various ways applied to different that's all in that calculation that comes down to your kind of Base amount of 3.3 million dollars and then we add in some of those legislative changes that I just talked about so the two percent increase to the base uh the results release funding switch to the base um and then we add in
011also carry board so ending this fiscal year we're estimating about 724 000 um and carry forward so that's a budget that was not utilized so how did that compare that's a percentage-wise with other school districts [Music] um smaller districts when you have a I guess less of a budget to kind of cover emergencies um anywhere from uh 10 to 15 as a good rule of thumb um I mean you you look at any sort of emergency uh you had a major Sewer back I mean asset people come in on some of these things but um you do have to be a little more on the conservative side as a smaller District to cover those unforeseen circumstances when it gets to it when there is an opportunity so you're within that ballpark and I know I've
012worked with Dr solozero on keeping that within that range because you do want to there's a fine line between polling as a savings fund and utilizing your funding for your students that you have a strict math so um so that that's what that number is um and then we added that one-time State funding which were appropriating to mnl and this 24 budget so prop123 also is in there that's expiring next year that's a an add-on there's a state Trust land where it's like six tenths of the sales tax is going towards uh this but that was from part of that proposition that was passed um but that is actually expiring next year and I've not seen any notion about this state to maintain or keep that funding up so um again another uh hit to
013uh K-12 plumbing and that so that would be the 234 000 one we'll talk about that next year though we'll get there I'm looking at Capital this is your other bucket again budget amount um you take your periphubal amount there's a couple there's two different ways two main weights on this give your K-8 weight and then you have a 912 weight so the state Waits your high school class um when your time comes to uh Capital funding at a little higher weight they have a little more higher Capital needs right when you talk about textbooks um Athletics and various things like that um that is why that there's two different weights there um we take the so that that amount is 200 just under 300 000. we add in the D.A increase of 5500 and
014then when you're estimating here for buying Capital that's being a little higher on the capital side um but again your district has been very fortunate in utilizing SFP it's not called sfe but the school facilities division for a lot of your projects and so that's a good carry forwarding Capital it's a little different percentages from mno your Capital again is one-time Capital purchases so the rule of thumb there is there's generally a higher percentage you're looking 25 30 inches and carry forward um you guys are north of that um next year so the changes again I think doctors worked with this uh with with Jeremy um so again I can go line by line um but you got a lot of changes coming in 24 that have some budgetary impact um I think some of
015the highlights in here again you know increasing salaries moving uh some of your benefit employees over um an increasing retention on the compensation so a lot of these changes are not coming from those two buckets that I just talked about there's a lot of different funds being used in this for example that retention compensation uh you have a classroom site fund plan for that and that's a different bucket of money but these are all your changes kind of budgetary high level changes that were planning on taking place in 24 any questions on that list the next slide sustainability test obviously when you make changes you want to make sure you can sustain them um when I talk about one-time funding and making initiatives for that um you don't want to put positions in place knowing
016that there's a Sunset date of next year right um You Want to make changes that are both impactful but also sustainable so I'm writing those 24 changes um uh through a little calculation again taking into consideration that we're not talking about understanding on Capital with some of those changes we're talking about a lot of your funds um you do have some and issues that are going to be able to be sustained for the next seven years According to some of our calculations so that's a conservative number um as some of your budget funds are especially classroom type 1. are contingent on sales tax and so there's a bunch of different like trigger points and when you're talking about different buckets of money um but with my experience and then Jeremy has been working with another
017consultant two professionals who's been working with Ade uh 10 more years of experience in the budget more than me both feel confident in making that recommendation in seven years of sustainability for some of those changes so and really that's that's it I hope a healthy place in terms of the balances um we're looking to draw on some of those balances uh for some of the changes Dr soltero has in the broadcast 24 uh to better your district and and again what do you think the student resources are saying um that's really it for me so I'll be happy to answer any questions you guys are looking fine um yeah it really I think some of the changes will help you know hopefully attract any chance of meeting people um achieve some of the initiatives that
018you have as a board um going into next year so I know you need a motion to return the meeting I'll make a motion I'll check in it Miss Olson aye aye Ms Roberts aye Mr Curtis which is aye Mr Guthrie aye Ms Rodriguez hi hi 12 minutes before the next video