001a budget capacity Your da budget capacity otherwise known as your capital budget capacity and then some of the changes that Mr kaios talked about and has worked on uh with Mr slotero going into next year and then kind of looking over again the sustainability test for some of those changes and not how Ajo can make those changes and sustain them for the future so first up um the pending registration um the reason this isn't vitalized yet is because the legislation has not officially close this legislation with the K-12 budget bill is going to take place July 1 but technically some of these bills that they're still working on will not go into effect until they they officially call the legislation session over so uh but looking at the fiscal impact um from this last uh
002legislative session the impacts for aho include the following so there's an inflation increase for um your budget uh mno that equates to about 63 876 dollars so um where they get that inflation increase number from is there there's a there's a statute that indicates that if uh realized inflation is greater than two percent the legislation has an obligation to it at a minimum fund uh or increase in base level support which is your per pupil allocation amount at a minimum of two percent um they have the authority to go higher and as um you may be aware you know actual inflation is is north of seven percent um but uh the legislation uh just uh honored the two percent increase that they were obligated to do um and so um well it's not bringing um
003the budget up to what is actually incurring in terms of increased costs with construction labor you know all the other inflation increases that you're realizing um yeah we kind of have no choice at this point so uh every district has been increased by two percent so we'll take what we can get um to move that needle forward and that equates to again 63 876 dollars moving down um some of the other legislation includes shifting results-based funding to the base support level so results-based funding for those of you who are not aware of that fund it was a separate bucket of money that was utilized um based on a state assessments um those used to be called azmerit I think now they're called AZ PSI and so um those assessments are issued and typically you know
004High achieving districts get a get a significant amount of money um based on their assessment scores um in that bucket where that money went goes to as you Call results-based funding so what happened is the legislation kind of eliminated that um and moved basically just a flat increase so all that funds that were being kind of allocated out on various districts based on test scores they just moved a 0.9 increase uh to the base support level and said you know every District gets a piece of the pie and so what that means for auto that's an increase of about 31 938 of ongoing funding I'll be from that shift please feel free to stop me to at any point in time um if you have any questions so moving moving down to the third ball
005there uh one time increases a part of the legislation um was a number of uh or one uh basically one-time increase uh allocation it was 330 million dollars Statewide um and this one-time money comes from um excess uh cash at the state and so they allocated that basically it's basically fed out to districts in a one-time um increase so that increase for Ajo uh it's representing this proposed budget has 139 000. 436 dollars so I'll cover that a little more when we talk about your m l budget and what I talked to the doctor sotero about utilizing that money for the last bullet their District additional assistance increase um that is uh and this legislation has also increased it was a three-year initiative at the the legislation has kind of honored and it's about 20
006million for three years we're on year two of that and so that 20 million Statewide uh equals 5500 for Auto in terms of ongoing increases to that Capital fund um the state legislation has realized that they're really understanding districts in terms of capital um if you recall from previous years there's there's been several cuts to the district additional assistance fund I wasn't just until two years ago that this was fully restored to um 2008 2009 level funding so these increases are really needed um and if you ask me I mean there should be more there and there is legislation or there is a capital lawsuit in place in which several districts are a part of yo indicating that the state has underfunded districts in terms of providing enough Capital to maintain and sustain their buildings
007and their facilities so um that's that's kind of on the tail end you know at that legislation or that um lawsuit probably won't be settled anytime soon but um this increase stems from that kind of understanding that Capital has been underfunded for multiple years just you know that's the lawsuit that Dr Dooley was involved with okay coming down to uh your physical 24 ml budget so I kind of broke it down um a little bit I didn't want to go into too much detail but um if the budget forms are attached if you want to dive dive deep into the details but at a high level this is kind of what your budget uh for mno looks like for fiscal 24. so uh it's calculated uh but your budget amounts calculated by by ADM so
008as you know you're you're schools are funded by taking your student account I'm the base support level so that's your your base support level if your per student allocation and then they add on the various weights for if you have um your sped students ell Etc and so you take all that can into consideration for auto um and that equals 3.3 million uh just over 3.3 million I did note there that we're projecting a flat enrollment and what that means is you're funded on current year funding and so when you're kind of looking forward um if you don't have any drastic Trends one way or the other in terms of either kind of seeing growth over the last five years or decline there's really no easy way to to predict the future and if you
009if you had a magic ball you know I'd be you'd be a very uh respected person and a lot of districts would utilize you but um the best way to budget is really to budget flat um and that way it gives you the opportunity if you do have if you do have some student growth you can revise up in December or if for some reason you take a decline you can revise down so in looking at your enrollment it's kind of fluctuated year after year so there's no Trend uh that I feel comfortable kind of predicting one way or the other so um I'm proposing to just budget flat and then give the district the opportunity to revise either in December or earlier when we see some enrollment um at the start of the school
010year um I talked about these two increases here the two percents of the base so that's ongoing funding at 62 000. uh results-based funding to the base that's 31 000 ongoing funding um the fourth line there estimated 23 carry forward so that is uh current year budget so your current year 2023. um this is money that has uh is being carried forward so essentially budgeted money um you take your your budget minus your expenses and this is your carry forward um again we're estimating we still have a couple days here plus the in-commerce period to pay some um outstanding invoices but this is what we're anticipating carrying forward into next year and so that adds to your your budget capacity um that Fifth Line there is your one-time state aid money we're proposing putting that
011in the m o budget um uh as additional contingency for next year um I think Jeremy talked about some contingency um parameters to be to be around um a general rule of thumb really is you know 10 15 as a safe contingency to allow for any unforeseen circumstances that you may incur in a fiscal year uh if you had need to hire teachers if you had any any sort of facility failures Etc that is what that contingency is used for and it's it's much like a savings account it's um a good rainy day fund um and A good rule of thumb for districts is anywhere from 10 to 15 so and then the last little bit there prop one two three um this is additional um add-on there's a six uh or excuse me there's
012a state uh Land Trust proposition that was passed a while ago this is expiring uh next year so this is the last time you'll see this in the in the budget um so that 34 000 um from that that proposition again that's expiring in fiscal 25 so but it just provided a little bit of add-on to diameter but you take all that in consideration that you're gonna be uh proposing a m o budget of 4.3 million dollars for next fiscal year any questions on Eminem no question okay a little simpler calculation um uh much like mno you take your um approved uh base level support So for Capital they have two different support levels there's a there's a k six level so kind of your your Elementary um level weight and then there's uh excuse
013me K8 and then there's a there's a 912 level support which is a little higher because they they add some additional weights on the 912 to account for textbooks and the additional Capital needs your high school students may have so um again you take your your ADM your student account you times it by those weights and that gets you your your annual Capital um budget amount so that's just under 300 000 there uh we had in the da increases that I talked about from the legislative um uh conversations that in the K-12 budget bill of 5500. and then we add in your estimated 2023 carry forward again same principle uh this this is accumulated for a couple budget years but basically you take your budget minus your expense and that's your carry forward and so
014uh you're looking at a capital budget next year of one million just over a million dollars um again that's a healthy balance um and aho utilizes um the state facilities board a lot for a lot of their construction projects so that's that's good in the sense that um you can save your capital budget for those much needed um improvements that are not funded uh by estate facilities board so um again in a good place here with your capital budget um any questions on Capital okay uh looking at the changes this was presented by Jeremy um in the May revision and again um what this budget does is basically put those into effect um I'm not going to go line by line because I think these were already talked about but I really I did want
015to you know talk about these in terms of you know these are going to be taking an effect into this budget and so um um the big hitters here um again all these changes are not coming uh from your m o and capital fund I do want to point that out for example the increase in retention compensation stipend um that's going to come from your classroom ciphon plan um so some of these increases if you're trying to compare this changes to the mno or capital budget um it's not Apples to Apples you gotta consider these changes are taken into consideration all your funds um and so um yeah so it's not it's not going to be just your m m and capital budget we're going to be utilizing a number of different funds to make
016and sustain these changes and I will cover that on the next slide here which Jeremy again talked about um but looking at all your revenues uh for your District uh your available ongoing Revenue available and just north of 250 000. um your ongoing increases for expenses uh 722 000 which was on the previous slide and so you're going to have some change here in that fund uh balance due to those increased expenses um do you have a number of one-time revenues available um again is it all your funds when you talk about some of your cash funds um I'm taking into consideration all those together that's where you could uh that 3.6 million um I think Dr solaro talked about the one-time expense being Forest bed bus to accommodate some of your special needs students
017um and then you have net one-time funding available at 3.5 and so taking into consideration those two variables uh your sustainability test um to sustain these ongoing changes uh approximately 7.6 years so which is um if you're ever going to make a move to increase um in anything in your budget you want to make sure it's sustainable for years to come um I'm a big advocate of that that's not just um hiring for one year you want to be able to sustain it um and provide that that level of service or customer service for years to come so and really um just a summary I was in a really good position going into 24. so you have healthy available balances um some of the changes that you're proposing um will utilize some of those balances
018uh but again they're sustainable for years to come so um we're we're making changes um but they're sustainable and uh I think they're for you know working with Dr Sarah they sound like these changes are necessary to kind of could be so with that I will answer any questions you may have I got none um no I'd say you did a good job explaining it and nobody has any questions for you thank you very much okay I appreciate that um and I plan on being there in person for the adopted budget um if you have anything uh more you'd like to see in detail please let you know Dr solo know I can I can certainly add a slide or or elaborate on that information so um thank you guys thank you thank you thank
019you Tyler um we'll go ahead and uh I believe we're done I'm gonna go ahead and hold on here all right Tyler I'm gonna go ahead and hang up there we're gonna disconnect and we'll be in touch okay thank you sir thank you okay now we're at the part where we asked for a motion to enjoyment that motion to adjourn oh second Mr curzner says I miss Olson aye Mr Hopkins aye Mr Rodriguez aye Mr Guthrie okay we got seven minutes before we do it again how come we need two super meetings just because