Gilbert Public Schools Board Meeting 04/04/2023

001thank you all right it is Tuesday April 4th 2023 6 p.m so I'd like to call this work study and brief board business meeting to order thank you for those who are in attendance and we will begin we'll go right to our presentation and discussion topics 2.01 FY 2022 District spending report Dr McCourt thank you madam president governing board members tonight we actually have three presentations all of them related to finance and so you'll be hearing a lot from our associate superintendent Ms Bonnie Betts as well as Jackie Madden and so I'll turn it over to Bonnie right now thanks so good evening governing board members Dr McCord Mrs wood we are here tonight to just go seamlessly from one presentation to another though we did purposely separate them as they are very different topics

002and you'll notice that the district spending report is related to last year the capital spending report is related to the current year and the preliminary budget is related to next year so as has been our custom most of the presenting will be done by Ms matinin with me providing the color commentate containing as has been the practice in the past though I will take the the heavy lift on the preliminary budget presentation so with that I'd like to hand it over to Ms matineon thank you Miss betz Dr McCord members of the governing board this evening we are presenting the FY 2022 District spending report as published by the auditor General's office please note that this version is an updated version we saw some formatting issues in the one that was posted so this is

003the updated version there was no content change this evening's report will go over the FY 22 Gilbert Public School spending report we'll talk about Local District spending comparison and review average teacher salary information this slide is from page 32 of the act for the annual comprehensive financial report that was presented in December this is indicative of what we can expect to see from the auditor General's District spending report and you can see the instructional spend is 59 so small 58. this slide is from the FY 22 auditor General's District spending report for Gilbert and the instruction is 59.6 percent our classroom spending is at 73.5 and non-classroom is at 26.5 percent you'll see the peer average there in the pie at 57 percent which is lower than Gilbert note that our peer average is our

004peer operational peer group these are considered very large districts with 15 000 students or more these are not necessarily neighboring districts so our peer averages are Mesa Chandler Peoria Paradise Valley Deer Valley this mountain before you go on will you explain real quick why the instruction is 58 in the aquifer but 59.6 percent in the auditor's general report just briefly you want to take that one sure so when the the presentation of functional area spend is presented in the annual comprehensive financial report it's indicative of a different set of funds than what the auditor general uses for purposes of this presentation that's the main difference in general historically what has happened is that the presentation in the annual comprehensive financial report has been a little bit less in instruction than the auditor Generals Report it's

005just the the pieces that go within the classifications that that report then cause instruction that's correct they label it as instruction it's actually the same it says so the um the chart of accounts that relates spend by that functional area is pretty much National so the annual comprehensive financial report uses the national definition it's just the funding sources that are included okay so um that's the that's the major difference okay thank you I had a question before we move on can you just go through and tell us what's included in instructional spending what's included in student support spending and instruction support spending sure what the what is that instruction is anything in the classroom this would be classroom teachers paraprofessionals student support would be our attendance clerks our nurses instructional support would be the curriculum

006side of the house Library thank you you're welcome so this is a five-year spending history for Gilbert Public Schools we are down slightly in dollars instruction uh dollars in the classroom transportation is up slightly food service is up considerably we'll talk about that in a minute non-classroom is up so the transportation piece also um just we wanted to compare fuel costs and show you kind of where some of that's increase may have come from when we compare the last few years we always try to bring FY 19 into the picture because that was our last normal year so in FY 19 our fuel spent was just over a million dollars in 21 it was 673 000. in 22 it was 1.37 so it doubled year over year so that that contributes to the Inc part

007of the increase in transportation and then if I can ask about that so the Dollar's instruction is down a little bit as far as are the actual dollars down or just the percentage down in FY the percentage is down and that's because mostly because food service and and fuel costs are up so then that just changes the percentages okay correct this is the five-year spending history again a graphical representation that includes dollars in the classroom non-classroom spend and food service so you can see that we tried to book end the data by providing the actual data for you quite consistent in both dollars classroom dollars in the classroom and non-classroom spend you can see that even though it's hard to see graphically there was a pretty significant increase in food service sorry just to to

008remind you last year was the first full year of uh in-person instruction and we were still in Universal free breakfast and lunch so the participation was very large last year great segue for this slide which was shared during our annual financial report so this is a four-year comparison from 2019 to 2022 and you can see the reimbursable lunch was at over 4 million here translating of course to the spends associated with labor and food costs and that was when we had the sorry that was when we had Universal free lunch and breakfast and breakfast thank you this is a comparison of our neighboring districts or local districts not necessarily our peer our peer districts so you can see that we're highlighted in Gold there this is quite a celebration we um are very competitive with

009our neighboring districts and dollars instruction and classroom um same with Administration or food service is competitive as is our transportation the admin costs at some of the smaller districts like Higley and Queen Creek would be higher because of the size of the district our instructional coaches are they put in instructional support in our classroom dollars or are they put into our Administration dollars classroom support okay thank you so they're they're specifically instructional support okay support supporting the teacher in their instructional practices yes they're they're not in in the classroom or not an instruction they're in the classroom their instruction support so and it's really interesting to point out you can see under the food service line you can see where we even though we were over a percentage higher year over year you can see

010that Chandler and Higley and Mesa and Queen Creek were also um significantly right around that but but Chandler and Higley in particular were nearly a percentage Point higher than we were in their food service spend Scottsdale was amazing at 3.3 percent it was really shocked at how they managed to do that so um again a graphical representation of the information on the previous slide and this slide includes ADM so you can see the comparison and the size of the districts between Gilbert Chandler Higley Mesa Queen Creek and Scottsdale so and again these are local school districts so we compare favorably to our local school districts but we also compare favorably to our peer group in addition keep in mind that Statewide Food Service percentage is increased as well as Transportation percentages increased we might just

011again the names of our peer districts so mesa's appeared District Chandler's appeared District Tucson Deer Valley Peoria Paradise Valley okay okay yep so do you guys ever break this food service down by title like how many Title One schools are in each district versus how many are on ours this isn't title one isn't that this big component of the for the free lunch it would be in a normal year this is last year okay so I mean that would be a maybe next year we would be able to break it out for you and you will see you will see the number of paid lunches versus the number of those that were fully reimbursable so this was a tough year because everybody received free breakfast and lunch yeah before we move on to average teacher

012salary so here we have the same school district's comparison FY 2022 local districts average teacher salary so keep in mind that 57018 was the FY 22 average teacher salary here for Gilbert and 23 it was 63 397. so we did add some stipends the pay for performance we kind of mirrored what some of the other districts are doing and you can see from this table how difficult it is to compare average salaries across the school districts because everybody makes different decisions as to what is included so we opted in the current year to follow the practice at Chandler to include all of the stipend values in our average salary that we are presenting on our budget and in the AFR and none of this includes like benefits or anything right and none of it includes

013any of the benefits that's correct but you were saying in the 22 we we didn't include right here you you put it in the differences to note base salary plus one time stipend but it excluded any other stipends and performance pay whereas some of the districts include the supplemental pays performance pays all of that so like you said in this 20 in this 22 we can see a significant difference it looks like significant but there was a little more payment given to our teachers we just didn't include it as the average teacher salary that's correct the other thing to note is that we decided to include that three percent one-time stipend purposefully because the idea was that we wanted to give it one time with the hope that we would be making it ongoing in

014the subsequent year and we were successful at doing that so now we're truly comparing Apples to Apples and the growth of average salary uh when we went into the 2023 school year folks that's important we've been really focused on trying to make sure that we're competitive so that our teachers especially and all of our staff actually have are paid for their excellent work and that we can attract and retain the best professionals so I guess we can talk more about that in the budget you can show us we will talk about that the other the other thing that's important is that every single school district has a different definition of teacher so we're not obligated to limit ourselves to just those individual teachers that are in the classroom because our instructional coaches and our technology

015integration Educators they're fully certified individuals but they're not they don't have a classroom responsibility our itinerant teachers we include them they don't have a classroom responsibility they have responsibilities to students but they don't they don't have a class load so to speak so it's really diff it's just a very difficult thing to compare but that's why it was important for us to put the the differences in there so that there's some evidence to you as to what is included and is not included no one has ever defined how they're defining teacher in this grid so she said we had to post it we just said yeah we just said the post yeah so are you going to comment about the 2023 what we have on the budget I'll go ahead so note that the teacher

016salary is that 63397 that's comparing Apples to Apples comparing the 57 000 to 63 000. note that that represents over a six thousand dollar per year increase on average to all of our certified staff but in addition as I indicated in 2023 we decided to mirror more of what Chandler is doing so we reported on the budget documents a value of 60 just over sixty seven thousand dollars so I just want to make sure that's clear to you so we are adding to that average teacher salary performance pay the other supplemental stipends all those other as well as our retention stipend that we awarded in the current year as well I I do think it would be important or maybe next time in context to bring what our average length of service is to um

017you know to show how long those teachers have been in the classroom I mean the a teacher who's getting this average pay is not a beginning teacher they're someone who's probably been in the classroom maybe 10 years or so I think it's I think it's important to note though over the last five years there's been a significant increase in starting pay for our teachers so that's been I think those years will it will it won't necessarily represent yeah so I just just to be clear when that number does come up yeah well I think it also would be interesting and as informative if we see what the average teacher index is for the other districts as well because if they have a higher teacher index then they have more of their teachers have been around

018longer so we would expect that their average teacher salary would be a little bit higher than ours even though again it's trying to figure out how to compare Apples to Apples because I know that we have had that has been something that we've seen a lot of is our teacher index has gone down as we've had several retirements as our school district kind of burst in the 90s and then we've had those great teachers with us all these years and growing with this and then they're to retirement age now so we're now kind of having that turnover so I think that's a good comment I did not include it in tonight's preliminary budget presentation but I will for the next presentation that we bring forward to you to to take a look at how does

019our teacher experience index compare to our surrounding local school districts just to see that'll give us an indicator of the years of service at each of these school districts in comparison to Gilbert and remember that the teacher experience index calculation is Statewide so it looks at the entire population of all teachers and then just determines what the average is and then anybody that has more gets a little bit more than one and anybody that has less gets a little bit less than one but nobody gets hit with less than one it's um the the greater of um one yeah it's yeah just so you know can I just ask the question can you clarify FY 2022 versus FY 2023 are we talking the year or the calendar year the school year what are we talking

020about with those those years so keep in mind that fiscal year for us is is the um is the school year so you will see fiscal year representing the school year July 1 so we're in fiscal year 2023 representing July 1 2022 to June 30 2023. thanks for clarifying you bet are there any more questions okay I really just wanted to add it's been a long time history here in Gilbert that we've been maximizing dollars to our students and though upon first blush I was thinking oh my gosh we really went down but in comparison to our peers and in comparison to our local school district districts our report was very favorable still indicating that Gilbert puts a priority on our students and I would say and we've always been one of the LA the

021lowest for administration every year we really ask a lot of our administrators and I just want to clarify you're saying when you're saying that we've put it toward our students you're you're saying our classroom spending yes our classroom so so dollars in the classroom and dollars in the instructions for professionals nurses curriculum library all of those things that's our that's where we look to spend correct and put a priority and up until this year and do do primarily to the impact of nutrition services we were always above 60 which is so we hope nationally that has been the metric trying to get your dollars in the classroom at 60 or higher and so it we've we've been very very consistent at keeping that very high foreign this presentation is some detail about the FY 2023

022unrestricted Capital spend this presentation is also updated I apologize about that after a final review Dr Newman and her team provided some updated numbers on the curriculum slide so today's report will include unrestricted Capital we'll call it capital history capital budget review and then the FY 2023 spend an encumbrance year to date so here is our Capital history beginning in 2015 the state implemented an adjustment to our unrestricted capital that went through FY 2021 FY 2022 was the first year we did not have an adjustment those adjustments total over 73 million dollars which means you're very polite it means that they cut our budget by that much money at the legislature and we were left with not very much restricted capital for several years until they started to improve the situation that is correct better

023you to say that than me this is a graphical graphical representation of the prior slide information you can see that 2014 what they what they allocated was what we received in 15-21 that was not the case and then now in 22 and 23 we were back we were back to 100 allocation and just a just a reminder that our unrestricted capital is based upon prior year student counts so um just making it a little awkward when you're figuring out your maintenance operations budget in comparison to your District additional assistance so just to keep that in mind so it's a state formula based on prior year student counts correct this slide you've seen during the FY 2023 budget revision number one I just wanted to bring it to your attention again since we're talking about capital

024and also the importance of the transfer of 20 million dollars because Capital if you remember earns interest so we are expecting over a hundred and ten thousand dollars to be earned an interest this year this slide is also what you've seen recently this is the year-to-date February District operating funds grid we really want to focus on the unrestricted Capital here so in this slide there's 17.2 million dollars spent and encumbered as of the data that was pulled for this report there's 20.1 million dollars so between between in those three weeks the difference was encumbered because of our purchasing deadlines for Capital we will go into the detail of the four pieces of pie that are the largest we'll talk about technology the school spend operations and curriculum do you have any questions about some of

025the other little slices before we move on I guess I I have a question so all of this is zero based no just the just the soft capital all of it's zero based so basically it's by request or how are we doing that I just wondered I'm I'm glad that we got to 20.1 million I'm just wondering since we were allocated 17.3 million this year so we've spent into the into the budget balance yes yes we have that okay and how did you well I guess go going through it no we didn't no on this slide you can see that the adopted budget and the revision one is 46 million so you're saying that we in this slide you're you can see that we've spent an encumbered 17.2 okay no she's talking about the budget

026allocation if you go back to your budget allocation slide which is just District additional assistance that by itself you can see it 17.4 so we've spent 20 million to date which means that we are going into our budget balance carry forward that's understood that's what you meant right yes yes and which is why we did it obviously we're spending money that we have there correct I just want to get details as we go on how we decide how much past our allocated this year to spend and what the process is on that so I think that the next slide will probably help us okay we'll probably serve you with that can I ask a quick question um the 110 000 that we make up in interest or earning interest can that go to any of

027these pies in this okay these categories it can be spent anywhere on this yes then those constraints yes so I have a question back to to go a little further with Lori's question so so we we took you're saying that we took roughly three million dollars or we we had to dip into our budget balance carry forward three million dollars I remember talking about the budget balance carry forward a month or so ago and it was I think we had said this is all from memory but I think we said it was about 14 million but we expected it to be a little less maybe 12 or 9. is that because of this three million dollars or is that in addition to or is this is this three million dollars in addition to the lesser

028amount that we expected in our budget balance carry forward I don't know is it this year or next year so take a look at this grid um it's the district operating funds I think you're referring to the maintenance operations budget bounds carry forward the Top Lane the top line is the available balance of that 12.7 and the last month that we shared information with you it was actually a little bit less than that 11.1 11.2 because we unencumbered a payment that we were expecting to make so that's maintenance operations the reason it's 12.7 million versus more is because of that 20 million dollar transfer so we we actually that that 12 million reflects that we already transferred in 2022 20 million dollars out of Maintenance and operations and put it into unrestricted Capital so again

029if you look at this grid you can see that our available balance is 28.9 million so easy math take the 20 million away our budget balance carry forward was was something greater than 8.9 million probably 11 million that was truly budget balance carry forward in unrestricted capital so we're drawing down that already built up unrestricted capital from prior years okay yeah we're co-mingling for sure that's why it's in the district operating funds because we are eligible are able to statutorily to seamlessly move monies new revenues move new revenues between unrestricted capital and maintenance and operations that's why it's included in here and they're both considered Levy funds so they're part of the state funding formula okay thank you bet so this is what I was hoping that you would answer your question um Lori so

030we'll talk first about the schools the schools did receive some hard allocations they all received twenty five hundred dollars for library books or media the elementary schools received 5 000 for reading materials the high schools and Junior highs received money for athletic equipment and uniforms and the last two years we've done a zero-based capital request process so the schools are are able to determine their need work with our purchasing team find Qualified appropriate vendors get some quotes and then they they request the purchases through a shared document and it has been working really really well some of those requests are Bond some of those requests are mno so we kind of go back and forth and and communicate with the schools what's appropriate what's you know what is a better use of these funds um

031there's a soft cap of about a hundred thousand on the elementary schools 200 on the junior highs and 300 on the high schools some of them didn't reach that and that's perfectly fine there were some that went over and that's fine too so it was a it was very much a collaborative process and I think it's worked really really well we've got a lot of positive feedback from the schools and I think this year if you remember Lori we instituted this process when we first had a substantive amount of unrestricted capital and the rationale is to not allocate it out because each year schools schools needs differ so if you need to replace your library in year one you don't need the same money to replace your library near two he already did it right

032so that was the intent of this based budgeting process in addition there's another layer because we have another layer that's a cabinet layer in which we all all have our own Department requests that's where Dr Newman would bring in information on what textbook adaptions she needs to implement in the current year or in the next few years she has that mapped out through the next three to five years she shares what those needs are Mr Castellano comes forward and says I need all of these Monies to to service our software agreements because that's what's awkward about unrestricted capital is it also funds all of our district-wide softwares and instructional software even though generally you wouldn't necessarily think of that as capital so it's those soft Capital needs are all in there and then any additional

033requests so working closely with Steve McDowell he does have a rotation process himself where he's provided I don't know exactly how much a few hundred thousand dollars a year where in year one he might replace the the sand and the long jump or the high jump at Campo Verde and then in year two it'll be Gilbert High and in year three it'll be Desert Ridge so those allocations stay fairly consistent but he too would make a request to Cabinet if there's another identified need that needs to be addressed and that athletic area so is a combination of zero based as well as some allocations that have been continuing because the history indicates that that is about the same spend needed annually what I like about that athletic spend in particular is Mr McDowell fully understands

034the programs at each of the high schools and really understands the the condition of the equipment if you remember the first year we replaced all of the um all of the weight rooms throughout Gilbert public schools and high schools sorry Gilbert High Schools yeah Cuba public schools high schools yes but anyway so that I hope that answers the question so it's a combination of both yeah combinations scoreboards scoreboards and partially because during that adjustment we just didn't have the funds to do that for the schools we were just taking care of basic basic maintenance and trying to get some bonds passed so we had more funds to work with I mean it was well and that was the difficulty as you always pointed out where all the boosters are actually funding a lot of those

035items that would be considered maintenance that the district was responsible for because we didn't have the resources to do that so as soon as we did we tried to turn that around quickly the other thing I'd like to say is that this zero-based budgeting process related to understand Capital was very different for our high school teams our I mean all of our school team games and so it took a while for them to can I really I mean really I can actually ask for something some there was a long and get it there were some there was a lot of resistance even so oh my gosh you know I don't want to I don't want to ask for that because maybe there's some other needs but so this year they've really been focused on it

036wouldn't you say yes oh yes definitely I've been around visiting some elementary schools and I think just about all of them have got new furniture in their libraries new murals painted new you know all I mean flooring is are are those things coming out of this are these are those requests for by the schools coming out of these budgets these soft cap budgets yep okay and is this flooring wouldn't that the flooring is the library Furnitures but all the furniture yes all the furniture and is this something that we're going to be able to continue um well we won't need to replace Library Furnitures for a while so but that's the whole concept right you don't need to replace that annually so um we we are watching it as we are doing everything and um

037so I was actually thrilled to see that the schools were making the requests so significantly in the current year but yes we're I don't know uh it looks like as long as the state budget stays healthy we will still be receiving around 15 to 17 million dollars annually and then it's all of the needs are reflective of the entire budget process which we do every year okay and is it how many how many years have we been doing this just this last year yes two two years yeah I started in the spring of 22 no spring of 21 Spring of 21 we launched the the process for the 22 school year yes and is this a use it or lose it budget for each individual school because you said some didn't spend it all some

038spent more so it sounds like there's there's a a general general fund I'll call it with the expectation that the monies are allocated to each individual school and the increments that you have listed here but if there's a school that didn't spend their entire 100 000 or 200 000 dollars um do they get can they can they carry that to next year and get more than a hundred thousand next year they cannot okay they're not allocated of a blanket 100 200 300 000 they're only allocated what they're approved for okay so if they submit a request for eighty four thousand dollars and it's all appropriate and capital they we add that budget budget at eighty four thousand dollars so there wouldn't in theory be anything left okay all right so the only other caveat to

039that is especially in the environment we're in now with supply chain issues they would input a purchase order and be waiting for materials to be delivered if they're not delivered by June 30. at that point in time we would roll over that purchase order and they still would be able to have that money to pay that invoice for what they already planned to spend in the year prior okay so a little bit a little bit of a caveat there okay thank you so the process to do it this way the hope is that we address needs and that we can address the most needs across the district as we can some years they're going to be more at some schools some years are going to be less depending on the age of things or the

040program or whatever it is so it's I think it's been a like you said I think it's been a successful as we could as far as Distributing this capital the best way that we can across all the schools in and meet the needs that actually exist there and you'll find out as Jackie goes through the presentation that we did have some significant needs in operations this year we had failures of boilers we've had failures of Chiller equipment that is truly a repair but it might cost a hundred and ten thousand dollars we did a portable move to Ashland Ranch that in itself was a hundred and thirty thousand dollar price tag so those are unexpected often and so we're thankful to have the budget balance carry forward so that we are able to address those

041needs that are not expected I just had a question as a new board member how much of the community and this might not be the time to talk about it but I know I've spoken to you about this before how much of the community do we get involved in some of these needs businesses that are donating Library chairs that maybe we could take out of our budget have we do we have a good Outreach to businesses that can donate yes it's not even appropriate it's it's not necessarily and I wouldn't say I don't think the word is appropriate I mean all of these Furniture companies are are in it for money and a lot of times things that are donated to campuses generally come through ptsos booster clubs those types of things and they're not

042on that scale a lot of times though if something does come in based on that scale we want to bring it back and go back to what are our standards as a school district and does this fit within those standards in order for us to be able to accept that donation okay does that make sense yeah and I was thinking more a neighboring District that has quite a few large companies right that reside within those districts donate a lot of money to the school district sure do we have any Outreach to any lar like anything you probably donate that through their Foundation okay and we have companies that will donate money to our foundation okay uh whether they're doing business with us or not right but it's uh something and those monies get funneled back

043in the terms of of grants for teachers for things in their classrooms or at the schools and whatnot so yeah well awesome with ramping up with school connect that is really their specialty is bringing businesses and partnering with us to meet the needs of the school depending on what they want yeah and I just I just know from a business standpoint a lot of businesses like to donate for tax write-off purposes so I was just curious and that this can be a conversation for another day I don't want to Sidetrack this but I was just curious as how we could get more maybe some more businesses involved in helping contribute to new wrestling mats or very small things that would take us you know that off of our shoulders as a district well I can

044tell you that the year before I arrived there was a Bank of America main facility that closed down and the entire financial services and quite a bit of building dotm were outfitted with brand new exec and that brand new but with gently used executive desks that we were very happy to take what was they just shut down a facility right yeah so we don't turn them away as long as they're usable right correct we'll continue on with school spend so this slide shows the instructional instructional Capital would be classroom Furniture that's the largest slice of this pie Library Furniture of course is the next largest instructional materials the 620 000 so there's a difference in capital between equipment and materials so equipment is what you would think of classroom Furniture desks for students microscopes things

045like that instruments instructional materials are more manipulatives small PE and music musical equipment sheet music workbooks things like that there was some construction that is primarily some shade structures at a couple of our schools many schools bought golf carts this year they were very very excited to have the money to do that some front office and administration Furniture athletic uniforms equipment some technology that wasn't covered by the AV refresh some custodial and security equipment and then reading in library books so the total spend to date is 5.4 million and we will most likely see some of this rollover to miss bets point about not getting it not receiving it until June 30th or until after so we selected three schools one high school one junior high school and one Elementary School we selected camp overdie

046South Valley Junior and Harris Elementary so you can see that Campo spent about seventy four thousand dollars on classroom instructional materials again that's manipulatives and workbooks software and then forty five thousand non-classroom furniture and Equipment they spent a hundred and forty thousand dollars on new library Furniture I wish I had a picture of it it's not in yet but they were very very excited about that they purchased four golf carts and then of course athletic equipment uniforms and library and their total budget was about three hundred thousand and to remember that that's the first they've refreshed their Library furniture since they opened in 2000 that was true of most of our schools and many of our schools had 30 year old library Furniture classroom furniture too yes yep so a quick just a quick question

047so all of this was they would submit a request to you for that and then that's how they would that's how that that was a process yes okay yeah I would say that there may be people who had children in Gilbert public schools that may have sat in the same desks that their parents did before we had some of this refresh some of that Library Furniture got used for two or three generations and it was very sturdy actually it was very sturdy very it wore well so I asked for pictures so we have the Campo golf carts some tables for I believe it was Clay she said a laminator again that's equipment and this is PE equipment it's interesting to note so when I talked about the difference between equipment and materials balls and things

048like that are pictured in this in these slides are considered material it's it's hard for people to think of them as capital um because they're almost disposable but they are we are required to code them as capital so they were excited to have all of those South Valley Junior High they spent some money on software musical um instructional materials and science instructional materials they did have a purchase of equipment for industrial technology some students seating classroom tables digital photography equipment they bought a lot of sewing machines they also purchased two golf carts this is one of my favorite sites in case you aren't sure which one is new I marked it for you it's not the one on the left with the big chunk missing and it wasn't the one on the left was not

049refurbished it definitely was replaced stage curtains and golf cart any idea how old that that piano was probably from the original purchased in South Valley was opened I don't know before Campo was the last one so maybe 2005 so that was probably almost a 20 year old piano well it may have been even donated because I know in many cases our schools accepted piano donations yes we didn't have the resources available to buy them yeah we need to tune them right yes I was going to mention that because I remember during the very Crux of budget cuts that when we were trying to do zero-based budgeting for the whole district one of the things that got left out was piano tuning for the grand piano at Gilbert High School and if you don't tune that

050piano that's a maintenance thing that's that's not a we want a nice tune that is a maintenance thing and the principle was expressing his concern that somehow he was going to find that money to tune the piano because otherwise it would wouldn't hold its value it wouldn't hold its tune in just a short time and Grampy House are pretty expensive so we don't want to do that old equipment is any of its sellable do we donate it like P equipment the piano and if we do sell anything where does that money go to we can sell some things so we do a public auction for our vehicles um this piano probably would not make it to surplus auction yeah and where does that money go into a school plant account back to the history thank

051you and Harris Elementary again some instructional materials furniture and equipment they did some outside seating which is very nice some musical instruments they bought a balance beam they bought some document cameras front office just front office display and some furniture and then they um also purchased in the instructional materials some items for their sensory room so here is the library furniture on the left and the sensory room on the right why would they this is just random why would they be purchasing document cameras if we just put BenQ boards in all the classrooms foreign I'm sure there's a good re I'm sure there's a good reason that would be awesome I'll share my mic John good evening everybody um great question um can you get away without using a document camera now yes it is

052a major shift in just how teachers do things so but it still is a peripheral that's not unnecessary okay so yeah I mean that's just yeah yeah some schools have chose to provide new ones that are more modern and work better with the newer technology and some have just decided not to so it's just a shift and presenting well it and it makes it really easy I've watched them use that document camera when they can just put their worksheet or their when I read sometimes I bring a second book so they can just show the picture in the book um and and not have to prepare anything or computerize it or whatever anything that's written easily could be done on the Ben keyboard now however any like manipulatives for math still right so you put

053them under the camera and you still get that three-dimensional and really yeah so they're still could be a need there for those for sure you're welcome sure a couple more pictures from Harris their front office display and a golf cart and it didn't provide any detail but I wanted to share the outdoor seating at settlers point and again I know this is kind of an odd picture but Pioneer purchased some basketballs and a and a ball cart and again just wanted to make sure that everybody understands that balls are capital [Laughter] I think the rest of the balls are out in the playground so we're going to move on to Department Capital spend any questions on the schools no worries I'll go ahead good I just want to say I absolutely love the fact that

054we that your Administration is giving autonomy to the schools to allow them to cherry pick what is best for their needs at that campus and I think that autonomy is amazing so thank you I think Bonnie got tired of me and well she's always tired of me Marcy and Jason coming back from schools and saying hey we need a scoreboard over here and Bonnie's just looking at us and so I think this was kind of born out of stuff like that which has really done well wasn't all right yeah you streamlined it but she figured out a way to keep us quiet to keep you out of her office well the other thing is is that back when we first worked on the Strategic operating plan it is in there the fact that we are

055going to move forward with the zero-based budgeting process on unrestricted Capital just because it's a one it's one time money meant for one-time spend and so it's important that you fund the needs at least at the beginning well and I I like the way that we can look at everything because a scoreboard may be noticeable but choir dresses or band uniforms might be kind of unnoticed and so I think it's nice that we're working we're allowing the school to make those decisions about what to bring forward and then we're working with them to meet those needs and replace items that have been well used well and honestly I think it's been a really great learning opportunity for all of us because one the schools have a greater understanding of what we would consider understood Capital

056versus a capital project that could be Bond funded in addition I mean even with the request that Jackie's getting and we have conversations about it's like oh my gosh so it just it just has communicated out the need so that we have more information about how do we spend our bond dollars in the future oh my gosh we need playgrounds we need soft spots for kids that they can fall on so they don't break their yeah to land yeah to land gently yeah but it's amazing how how much we have all learned just from this process so unintended positive consequences I've worked in working with the schools have noticed that the principles are very thoughtful and and careful with what they're purchasing and conservative and it's really been a great experience to work with them

057throughout this project I did was very much paying attention to what they were choosing so that there isn't more levity given to a certain population or a certain club or whatever so it seems like it's very evenly distributed for all the needs for all the students yeah so that's great just just a little history here since I'm the historian there was many times where we had to figure out a way to buy our own cafeteria tables playground equipment and ptsos were having to do that so this to me is just is absolutely wonderful because you don't realize until you have to buy a cafeteria table how expensive they are when you're asking your ptso or somebody to give you the money so this is this is wonderful so we'll move on to Department Capital spend

058and it's really important to note when we get to some of these pies that um a large majority of the spend obviously is is directly related to the schools so this is just a picture I don't have a pie for athletics but we wanted to share this with you um this year Athletics purchase to Santa sport machines in the past when they would get the football pads back they would have to spread them throughout the warehouse and spray them with a an expensive chemical that would take weeks to dry and it while it killed the germs it didn't take away the odor oh dear so um and then they could they'd have to rotate it through it took a very very long time and took up a lot of space these machines can do a

059school um in about three hours so and they hold 24 sets of pads so these are just for shoulder pads for now but it can we can put anything in there on any type of athletic equipment so we're very excited about this they're using it for helmets too they're using for both it was funny because Steve was Steve McDowell called me one day and he said Bonnie it's amazing I mean they don't smell anymore so at the same time that they bought these they also bought a new dryer in the Athletic Warehouse so that could they do run through the uniforms and wash and dry them so the dryer was on its last legs and so we were able to do that this year as well so I wanted to note that this is waterless

060and chemical free and this is the machine that the NFL uses as well so oh wow yeah so we will talk about technology so 4.22 million dollars is spent on computers so these are in the hands of students and teachers 1.62 million is spent on software that affects the entire District including Infinite Campus a network and security services and other district-wide software so these are this is not pizza it looks like pizza boxes I would not approve that these are the Lenovo ThinkPad laptops for teachers um and Mr Castellano reminded me that they are committed to refreshing every elementary teacher device this may and how long it's been about five or six years I believe since we have five five years since we refreshed their technology and prior to that it was 10 years 10

061years is a really fun long time to have the same computer I know John always reminds me it's a constant rub yes so this these pictures are a multi-purpose room AV refresh AV date and this is now the district standard so you can see the screen there the item on the right is the control box for the AV sorry so that was through the whole of that was every Elementary multi-purpose room or that was if you requested it or how did that go so Jan you want to come up here and talk about that that'd be great foreign you may want to sit closer Albert's up next I'm teasing lovingly of the NPR's we've done so we started the walk actually last year on those and then of course I work with uh Mr Martin

062to put in order the oldest you know to the newest which there's none that are really new a few have been done with help from the PTO but in the most part A lot of these were original equipment when the schools were built back order was has been very bad on two components that you see up there on the screen but they have started to catch up a little bit so we've completed six nprs so far another six or seven are already scheduled all the junior high purchase orders are in but those quite haven't been scheduled yet excuse me and then um we're going to walk the last 15 elementary schools shortly and then get purchase orders in for those so equipment can be ordered and then we kind of wait on those so those

063will definitely spill into next school year because we're waiting for we'll be waiting for equipment on that correct we were going to do five a year as the AV refresh ends um there was some funds remaining from that and so um I've got the technology advisory committee back together kind of talked to them on ideas like okay where could we go now it's not a lot of money but it's enough that it would finish the NPR's at the elementary schools and so then I brought that to cabinet and talked about that and we agreed that would be a good spend on that money and just to clarify since he's putting in the purchase orders I just want to make sure I've gotten all this in my head straight this year before the fiscal year ends

064even though the equipment might not be in until the fall it still comes out of fiscal year 2022. or 20 right it um it won't be recorded out of fiscal year 2022 if the equipment comes in afterwards however the money rolls the money rolls okay it'll still be considered a 2023 spend okay or 2024. sorry 2024 I'm sorry 2024 as soon as I said that I realized that I made a mistake it's 23. so it'll go it will roll over to 24. the money will roll over okay got it thank you thank you all right moving on to operations again this the money that that operation spends in capital is directly related to the schools um very little of it is at the district level so the largest piece of this pie is the HVAC

065as Miss betz mentioned um Marquees were still moving through the Marquis update and then Renovations flooring portable relocation that you mentioned and fencing playgrounds and the pictures for operations I'm sorry Albert are not quite as exciting as the pictures from the schools but this is a new HVAC unit I believe well the picture may not be exciting but it would be pretty exciting if we didn't have the new chillers to keep people cool very true as it gets warmer here's the canyon Valley Marquee and the large pieces of custodial equipment that Albert and his team are managing and I don't know if you remember and I know that Rhonda and Chad you were not on the board at that time but uh back in 2019 or 20 Mr dutchover came forward and said and made

066a recommendation that it would be a better idea if if operations could take responsibility for purchasing all of the higher costs larger equipment custodial equipment we would assign it to schools but in that way when we have one school that a machines broken down we'd have an ability to take the machine that's not being necessarily used at school a and transported over to school B and I think that that has worked quite well the schools are still responsible I believe for purchasing their own backpack vacuums those kinds of things but the larger pieces of equipment that would be the the flooring strippers and stuff like that um Albert is is responsible for again they're not sitting in his office they're definitely at schools but it does does take the burden off of our schools again

067for having to worry about replacing them and then also the the facilitating of moving the equipment around when needed honey and just to refresh my memory when when we did all of the uh upgrades for security where did that come was that last year or is it was any of it this year's budget it was um it was a combination It's a combination yeah and when you say security upgrades you're talking about all of our security cameras and the doorbells at the yeah yep that was um end of last year we did most of those doorbells over the summer Dr McCord right very fast yep well isn't that really an ongoing expense again probably something that is a zero-based budgeting expense because as we go through securities obviously become more important that's a bond spend

068yeah and then we if you remember we did negotiate though a full five-year service and warranty contract with the provider but to your point we're going to have to go through a refresh cycle with all of those security cameras just as we do with Chromebooks at some point in the future yeah I mean it's just going to be a bigger part of our budget in the future and now now and in the future than it was in the past a couple more pictures from operations there's a playground resurfacing on the left and some work that was completed for ADA compliance you can see they stripped out the curbs there and finally we have curriculum Capital spend so again a shout out to Dr Newman and her team she provided some updated numbers for this particular

069slide you can see the 1.4 million as reading Ela Mandarin and dual language adoption that amount includes 586 000 of traditional math adoption that will be moved to sr3 then we have testing which is illuminate testing platform and Cog at I think it's testing Library systems history and social studies curriculum and some science curriculum and that is all we have any questions feedback there were some requests to have this presentation done I hope it provided you the information you were looking for but we are certainly open to feedback and suggestions I wanted to make sure that everybody knew that each of the individual schools requests are available we we didn't think it would be a good use of your time to share all of them but if you are interested we can easily print those

070off or share those Google Docs with you we did it through a Google doc process so I wanted to make sure that you're aware of that as Jackie and I were going through all the data it's difficult to figure out how to present it there's so many Crossing points um but but we took a stab at it but but we're very happy to take feedback if you have any ideas on how we could present it better so that it's more understandable for you and the public we'd very much love to hear that so maybe you could think about that and give us feedback even later at a later date if you if you have any ideas I was going to say I think this is the most transparent we've ever been about how we're spending

071that money and how we're making requests and and taking care of the needs that our students have so I really I really appreciate it well and if I could say too that we just had the district spending report prior to this and the unrestricted Capital spend is definitely included in those categorizations associated with classroom spending or whatever the case may be so I expect that with the amount of classroom spending in library spending that we have seen this past year that that will reflect favorably on our class on our district spending report for 23 as well [Applause] [Music] [Applause] you're gonna drive for me Ms matinein thank you so for this particular presentation I'd like to actually let Jackie off the hook and request that Dr McCord provide the color commentary as we go through

072through much of the preliminary budget so we have shared a little bit of information with you on what we're expecting or at this point at least possibly expecting but as we go through you'll see see that we are still sharing the statutory budget as well as the governor's proposal just so that you understand the possibilities in the future but all of the budget balancing conversation is going to be associated with what we know and we believe that we have a really good reasonable expectation that at a minimum the statutory budget for 2024 would be approved so with that if you give me the next slide thank you so as always we share the budget development timeline again one of the things that's been very important since Dr McCord had us working on that strategic operating

073plan back I think as soon as I walked in the door during fiscal 19 and so it's important that all of our spend aligns with those priorities it's also important to always share the student counts and enrollment information and then of course balancing the 2024 budget what is our year-over-year budget capacity uh projected budgetary savings non-discretionary as well as recommended budgetary increases in that particular area we are making a solid recommendation regarding pay increases for 2024 and then budget balancing strategies and finally as always there are risks but there are also future opportunities so the first slide you've seen this budget development timeline a few times the main area I wanted to focus on right now go ahead and click the next is this April May time frame that's where we are right now in

074the development of fiscal year 2024. note that the legislative legislative session is supposed to end at the end of May just a reminder that last year the session did not end until June 25th so we are doing the best that we can to anticipate the future but there's still a significant amounts of movement as we go through this development process for next year so here's our strategic plan summary this this budget plan includes cost increases that are fully aligned of course to the Gilbert Public School strategic operating plan as well as the override commitments made in November of 2019. so some of the details competitive salaries we we believe that is directly related to Student Success as well as employee Excellence art teacher FTE increase that you guys have already approved student access and employee

075Excellence I wanted to just remind you that those 12 FTE that we added for our teachers also impacts all of our FTE staff at all of our elementaries because For the First Time in many many years all of our elementary teachers will then have their full allotted prep periods that have been enjoyed by our secondary schools for a long time Title IX compliance so this is specific to new legislation regarding how we handle complaints sexual harassment sexual harassment yeah good thing currently um it's it's being handled by Joyce Meyer executive director and human resources and when this is Jacobs oh oh yeah Jacobs thank you you're on the ball tonight good for you and um she when this came into effect we didn't know how it would impact us an individual taking care of this

076and for the past couple years she's been handling it that wasn't the purpose that she was hired for in in otm a big part of her job was to recruit and retain staff this takes up an enormous amount of time for the mere fact that the process for each individual case could take up to 60 days and when I say that there's investigations that have to be carried forth and so it's a lot of a lot of hours put in by an individual and as we don't see changes of this coming forward in the future we need to dedicate an individual just for that who works directly with the schools related to these types of compliances related to Title IX so that's why we're putting this forward this year said Joy Joyce so Dr Jacobs

077has taken on this role for the past two years yeah what did we do before that for complaints so those complaints the the federal law didn't change until then and so fortunately or unfortunately for her uh when she was hired into otm that switch came about and so we were looking to go where can we handle this and where can we begin this process and um her being the new one in there we we saddled her with it and um now we're looking to unsaddle her with it because it has gotten to a point that it needs its full attention from one individual so who who and maybe maybe you answered this and I just wasn't listening which my wife can attest I do all the time but um so who is handling complaints before

078Title IX complaints we weren't Title IX complaints weren't to the level in terms of how the federal government made them important so during um the three years ago probably federal law changed and so they hammered they put the hammer down on any kind of sexual harassment and then they put in process a lot of benchmarks within that investigation that have to be met and so for example if somebody is accused of sexual harassment and one individual files a Title IX and wants to go through with it no discipline can occur until the full investigation is done and again then individuals have the right to rebut I mean it's almost like going to court and so the process takes a long time it involves our administration at the schools as well as sometimes we get use

079different administrators to help independently investigate some of the cases and so a lot of communication back and forth as well as a lot of organization related to keeping every case straight and they don't so if somebody does something they don't necessarily have to call it Title IX in terms of making sure the investigation goes forward that ends up on the parents plate to make that decision and so they get some time to be able to make that decision but if they go forward then the process is in play and um everybody's involved so before that let me just okay see if I can clarify so before this the federal law came into play if we had complaints of this nature the principles in HR and probably sure generally the campus would basically handle it yeah

080but if that's what you're getting and I'm sorry it's elevated it and change it to a very thorough rigorous timely which it is what it is at this point right so so I guess I'm I'm curious did the changes that happen to Title IX a couple years ago that required all this extra you know all these extra steps can no can those changes still not be handled by the the each each school where the complaint took place they had is there something that says no it has to be handled at a district level yes so you have to have a Title IX compliance officer where the initial complaint goes to and then they help the process in terms of making it go emotion to where who's going to investigate it our timelines met in a

081timely manner communication between both parties and making sure that everybody has their due process rights within the Title IX process so so we're required to have a Title IX officer can we have the best way to ask this can't we just designate somebody whoever would you know let's say it happened at Highland right just as an example not sure choosing that for any other reason is other than example but um and let's say you know some office front office staff member handled the complaint before can we not designate that person as the compliance officer so we'd have essentially whoever handled these things before at each individual campus can those individuals not be designated as the compliance officer no that's that's where some of the the changes came in has to be one individual okay and

082that's so everything gets funneled into one and then it might get dispersed differently um but no those are things that we talk about it's kind of like what was happening before but we weren't under such stiff regulations related to that and now we are and and and it's a it's an intricate process in terms of steps need to be followed or as a district we could have office of civil rights complaints filed against us if we don't do it appropriately Shane is it just is it just sexual harassment or any kind of office of civil rights it it it's it primarily focuses on that type of behavior there's some gray areas in there that Joyce deals with and if we have questions on whether or not it's tile nine we'll call our attorneys just to

083get clarification is this is this a federal was this a federal federal yes so did they provide funding for a school district to welcome to the world of unfunded mandates that we live in and it's not just our district like if you go to colleges and universities they have a huge Title IX offices going on on the University campuses and it's all federally mandated yeah so I do have a question really funded not federally funded federally mandated and at the college level like you could have 20 employees in a Title IX office dealing with everything that's going on on a college campus do we have enough complaints yes full-time employee for Title IX that's why we're here tonight whoa and again it how do I put this um things that probably could be handled on

084a campus with conversations and now if you don't report them the right way then you could be opening yourself up for a lot more so guess that's the best way to put it so this this is for the fall starting in this would start uh July and has this job posted no we're we need because we're coming through this process first yeah because we haven't yep yeah all right um and then on that on that same line um and I I consider the movement of new teacher program mentor stipends to mnl presently they're being funded out of Title II again uh going back to the art teacher FTE where not only it's about the students and providing more opportunities for students it's also about improving the working environment for our teachers so in the case

085of the new teacher program mentors they would be obligated they they just receive a stipend um of 600 and they're required to complete a time and effort because they're being paid out of federal funds and it's it's every single I think it's every month they have to report this so it's a it's a little bit it's a it's a fairly significant burden for the little bit of a stipend that they do receive so we we did make a recommendation to move those out of Title II and into mno is is this a one-to-one position for uh One Mentor per individual that's going through the pathways program for us it's not specific to the pathways program but I'd love it if Dr Newman wants to come up unless um unless Dr McCord would like to take

086care of that generally runs through like the PD type role and new teachers that are new to Gilbert primarily maybe or new to education to begin with um a big part of this is one it's hard to get people to come teach these days two it's hard to keep them in order and through conversations and and just feedback from veteran teachers teachers new to education it is about that support and we have to give them as much support as possible and this is one of those ways to make sure that those new teachers have somebody to go to they have that individual that will carry them through show them the ropes and be there for them more than anything and of course help them out with all the technical stuff related to education but um

087be that go-to person so at the end of this school year they're not leaving education because um you know nobody helped them or nobody was there for him so just to clarify when you say technical stuff I think you mean trying to learn and follow policy not technology no I'm talking instructional strategies I'm talking everything related to education to make sure those students are learning everything they can from that individual okay exactly yeah because I would say our new teachers coming in they're up on their technology skills it's those classroom management skills and understanding you know they have constraints about what they can do because we have policy and they need to understand the policy and follow that and so there's lots of you know teaching is a very challenging profession and and we definitely

088need to help and support those new teachers I just was wondering if it was related to the pathways program but um I all new teachers need support whatever wherever they have gained their education from we've had different versions of this over the years as well and so we kind of didn't reinvent the will but reinstated something very similar to what had been done in the past and so sometimes it's good to go back to some of the ways that we used to practice to make sure that people felt valued and we showed them the amount of time and respect that they needed in order to stay in this educational field so just to clarify by moving this stipend into our mno then they don't have that burden of filling out those forms every month and

089so it makes it a little bit easier it's just more of a exchange and support of that new teacher and can focus on that not the reporting of it that's correct I just want to ask real quick would you so we started this last year again officially in this form would you have anecdotal or just thoughts of how this has been successful could you share sure I think the feedback that I've received Jason Marcy even sean and Barbara as well is that it is nice to be able to have someone assigned formally to somebody new in the past it was like hey would you please help take care of so-and-so and be there for him and um but now that we've tied some money to it as well as some formalities and what some of

090the expectations are in working with these individuals I think it it gives more validity to what we are asking of new teachers but we're asking of those Mentor teachers too and so anything of course you get out of it what you put into it right and there are probably new teachers out there that maybe don't need as much help as as some others but then there are some that that struggle for a lot of different reasons and so um it's important to have someone there to help them through those times Mentor different from and maybe maybe Jason's the person to answer these questions a couple of these questions but how is a mentor different from an instructional coach so an instructional coach is there to help with all the instructional strategies for every teacher on

091campus can instructional coach work with a new teacher you bet we actually ask them to help focus on them but kind of going back to what Jill talked about those are the instructional strategies in class if you have a mentor let's say you're a science teacher at the high school and your mentors another science teacher next to you and you're struggling with lesson planning related to content that individual is going to be able to help walk you through that or you're having issues with classroom management or you don't know to where to get a Rhema paper or those types of things this Mentor is there for those types of needs okay and does each new teacher have a different Mentor I believe so for the most part is that yeah for the most part there

092might be a couple out there that are doubled up for a lot of different reasons just in terms of of availability of other individuals but or based on their specific content area but for the most part it's one-on-one and how are the mentors selected usually they're selected by principals who believe that this is one of my leaders on my campus who understand how to help people who are new to the profession and so they'll recommend them for those new teachers and because there is a financial component tied to this can teachers request to be mentors or is there a program or I don't well I I think they can request I mean it goes both ways we're not going to sit there and say no but if if I have a teacher who let's say

093I have a teacher on Improvement plan who's been here for six years and they want to be a mentor that's not for them right so we look at it we kind of weigh it out and and if the the need is there and this person's viable for something like that then we'll utilize them okay I I would like to share something um I went to Baccalaureate at Mesquite High School I don't remember I think this was a couple of years ago and they had two teachers speaking and they were very close friends but the first teacher shared how that teacher they were both English teachers but when she came in as a new brand new teacher every year that every week that year that teacher sent her lesson plans and information that was just there

094to help her as she learned to manage the classroom and provide the curriculum that the students needed and just you know they became very close friends obviously they spoke at Baccalaureate together but I it was just very powerful to how much the new teacher appreciated that and that support from the older teacher and it was frankly a powerful Baccalaureate speech to hear both of them shared their thoughts good to go all right thank you guys yeah that's okay so um so I wanted to share uh we um we pulled all this data off of board docs across all of these school districts most recently just to share the competitive landscape that we're in regarding um regarding competitive salaries for all staff so you can see Chandler had a formal letter of banking increases of 2.5

095to 3 percent across the board note the retention stipends for both support staff and for certified staff and administrators so that two thousand dollars and one thousand dollars is just based on available resources all the school districts are in the same same situation as Gilbert we don't really know what's going to happen next year so they're they're making some commitments based upon available resources um and then they did have the benefit increase of three percent up there a note that Higley opted to do a dollar per hour as well as Queen Creek for the hourly staff uh this was important because we are anticipating a significant inflationary increase again and so um last year the inflationary increase was over eight percent the dollar an hour represents about a 7.02 percent increase to the minimum wage

096so it may not be enough um however um so Higley and Queen Creek have opted to do that and then Scottsdale and Chandler kept it as a straight percentage increase across the board so I just wanted to make sure that all of you had the data that was right off of board docs that that were approved the other uh situation and I believe this to be true and documented but anecdotally I heard from my peer at Chandler that they did send out contracts with the three percent increase not the two percent increase two and a half percent they did send out a three percent increase so that's the um the information on this slide go ahead so now the basis for our budget always starts with our student counts uh so this is our ADM

097comparison so again ADM is average daily membership that is uh the definition of Arizona's student count uh note the 2019 to the two to the 2024 projection we always um compare what happened in 2019 only to share that in 2020 our final was was a hundred students over a hundred students greater than we anticipated actually over 500 students more than we anticipated because we did assume a 400 student loss going into 2020 as well and then note the 21 and then the 22 the 23 then the 23 revised number one and then the projected 2024 which again still accounts for a 400 student ADM or a 400 student count loss so this is just displaying it in a in a graphical manner 2021 was really reflective of of course we were right in the middle

098of covet at that point in time so many of our students went online at that point in time so the budget capacity projection for 2024 I wanted to make sure that it's clear this is based upon our student accounts as of December so our student counts again because we're funded on current year in maintenance operations so this is changing monthly as well but as of December as of the governor's budget and the statutory formula this is the dollar amount per student that we are starting with uh note the increase by inflation of two percent again statute statute says that you shall increase the base level amount by whatever is less two percent or the inflation rate so going to two percent and then the governor's budget you can see the increase of 3.04 percent increasing

099by about fifty dollars more per student and the um the dollar amount per student impact so again uh 400 students were anticipating 300 K8 and 109 12. this is important as those of you that are new especially the K-8 weight is 1.134 and the 912 weight is 1.268 so the state funding formula does provide for greater funding for 912 students note that the online we just have no information on that we just assume that it's going to roll over to be the same the same thing with the add-on weighted student counts reflective of our English language Learners our at-risk students as well as our special education students and that weight is based on what is that weight based on well I know it's a number of things I always thought it was funny that they

100even waited the elementaries right because you have I couldn't just be a 1.0 and just give us a little bit more instead of giving it a 1.134 it's all based upon the size of the school district as well so if you look at statute there are varying weights for Elementary and high schools depending upon how large you are as a school district the smaller the school district the more the weight is so I I believe based upon my experience that the reason that they wait high school students hire is primarily due to the Athletics just because that is and and plus the the numerous strands and Pathways that are available in our high school at a high school level so but honestly that's a guess it's been in statute though for a very long time

101so again you can see the base level amount increased to 48.70 so the 4870 is the basis for our projection and our budget balancing not the presumption that that the governor's budget would be passed and then note the teacher experience index we talked about this a little bit earlier so it decreased again to 1.0116 from 1.0167 reflective of the fact that we are in that stage where many of our long-term employees are retiring and so then we're seeing the commensurate decrease in our teacher experience index that small decrease amounts into a loss of over one one million dollars however theoretically our teacher cost should be reflective of a little bit less as well as you know that has not been borne out in the CR in the current year and then the trcl we affectionately

102call the trickle is the transportation Revenue control limit set equal to 2022 we do have our data in for our 100th day Transportation report already and we have already calculated that so that will probably not change meaning that that's that that will not impact us it will be exactly the same next year as it was this year before we move on can I request we take a bio break you bet okay let's adjourn for five minutes thank you laughs is a historical hysterical it was true I mean we had everything you know vacuum cleaners [Music] it was amazing oh it was and you break [Music] okay all right if we are ready we will continue this wherever we were at Miss Mountain okay so this is just a summary of all of that maintenance and

103operations data that I just went through individually so go ahead into the next slide um Jackie so this is our preliminary mno budget capacity and it's important to note that this does exclude the budget balance carry forward because of the Advent of the cares act money of all the user monies it has put our budget balance carry carry forward at such a level that it in it does not accurately reflect what's available to us to spend so we have opted over the last two years during this preliminary budget process to exclude the impact of budget balance carry forward as we get through the the um the budget development process so you can see if you'll focus on the fiscal year 2024 projected statutory column so it's the column just to the left of the governor

104as you can see that we are expecting new money so this would be new money associated with student accounts with the base level amount increasing of 1.34 million that also remember reflects that 400 average daily membership loss as well as the decrease in the teacher experience index so all of that is in that number okay from go back up a second that's not really a lot of money right I mean with the inflation we've had and everything that's that's not a lot that's not a lot um and the other thing I wanted to point out so we did go back to fiscal 2022 revise number four on this grid uh please this is again we're reminding you of that Revenue control limit amount of 20 million dollars out of Maintenance and operations into unrestricted Capital

105there were actually two reasons uh Jackie shared one the fact that had we left that money into maintenance operations and of course we would receive interest earnings on that we would not be allowed to spend that pursuance of Statute by moving those monies into unrestricted Capital we are able to increase our budget capacity in unrestricted Capital reflective of those interest earnings so that was one reason the other reason is as we've been talking about over and over again on unrestricted Capital it is really a one-time fund for it's a fund that is utilized for what you would expect as one-time expenditure not ongoing expenditure so that was the other reason why we thought it was important to move it into understated Capital but that particular 20 million dollars is going to play a role in

106our budget balancing for 23. that was my question right so that's why we're just answering it out that's why I'm pointing it out Okay so so again this item the first item premium holiday credited back to mnl I have up there up to two holidays I wanted to share that tomorrow we have a meeting with the employee benefit trust we have also scheduled a meeting at this this is the employee benefit trust committee that we have a meeting with tomorrow and we have also scheduled a trust board the formal trust board meeting is scheduled for the 19th of April to discuss the uh the recommendation to you all of whether we should go to one or two premium holidays going into 2024. so presuming that we make a recommendation for two premium holidays that would

107be a credit of 1.5 million dollars and then in addition because we are anticipating a 400 average daily membership loss we are anticipating a 20 FTE savings again as has been the the case for the last four years we anticipate that that 20 teacher loss will be easily taken recouped through our normal retirement separation processes at the end of the year so the total budgetary Savings of 3.1 million thank you now these are non non-discretionary budgetary increases so these are those items that we have uh it's outside of our control and we have to account for these increases so medical insurance premium increase you all have already approved that after a recommendation from the employee benefit committee as well as the trust board the hourly increase for minimum wage again I shared that that we

108are I haven't shared this yet but we are anticipating that we are going to make a we are making a recommendation to you to increase our hourly wage up to that dollar per hour to counteract that minimum wage increase earlier as opposed to later but even with that we are anticipating it could be even higher than that seven percent which represents that dollar per hour increase a general inflationary increases we've all seen that our fuel has gone our diesel fuel in particular has gone from two dollars and 10 cents a gallon up to four dollars and sixty cents a gallon and this is on the state contract so um so those costs are are very very high and not to mention all the supply chain issues that are increasing costs as well um and then

109special education increases we have historically increased our requests by one to two million dollars again we're putting that one million dollars in there as a placeholder just to be cautionary that we may see those kinds of increases and then finally the increase to Arizona State Retirement of about sixty thousand dollars so a total of three point just under 3.6 million dollars of what we would consider non-discretionary budgetary increases so discretionary budget in budgetary increases the Title IX coordinator the new teacher mentors we are also recommending the Junior High Assistant principals to move to a 12-month short calendar again this is going to provide us opportunities for seamless movements across as we have separations or individuals leave the school district we can easily move them from one from one Secondary School to another in addition since

110they are a 12-month short they will be able to handle the duties of summer school leadership so all of those things together amount to uh just under three hundred thousand dollars can you just clarify what the current calendar that the assistant principles it's an 11 and a half month calendar and I don't know exactly how many days 11 months okay then there's a set aside for hard to hires and years of experience so I think I shared with this with you all when we requested that you approve revised budget number one so for the first time we um we anticipate an average salary for 2024 2023 when we when we adopted the budget for 2023 and when we actually did the calculations to reflect that on the revised budget number one when we presented that

111to you in January our average salary actually increased for the prior four years it actually decreased because we would have vacancy savings that would counteract the years of experience and the hard to hires so at this point in time we're adding a two million dollar budget placeholder as a precautionary measure also providing otm with some some safety net knowing that they have available resources to them to make sure that we're filling our classrooms with teachers addition of 12 art teachers again you have already approved that and then the two dollars and fifty cents per student in art supplies because we have an extra day of art they're going to use additional materials and so um that would add another forty thousand dollars to the to the budget so a total of 3.3 million dollars that's

112sorry that is in the mno not unrestricted capital art supplies or mnl so like clay I know right clay right it's sort of like it's sort of like pencils and crayons versus yeah right I know it's amazing right okay so the usfront the the usfr the uniform system of financial records otherwise known as you suffer clearly says it clearly says that uh clay and all of those art materials are supplies and that's soft capital good question though that was really great a basketball can be used more than once play once he tries it's done it's true it's true it's one time thing so then these are our pay increases that are under consideration so the hourly staff increase wages by a dollar per hour um again knowing the inflationary increases knowing that the minimum wage

113is definitely going to go up in January and knowing that we've still continue to have a difficult time hiring drivers hiring Community Ed employees hiring paraprofessionals in our classrooms we're recommending a dollar per hour increase which amounts to 3.8 million dollars and then exempt staff everyone else we're making a recommendation to increase by three percent matching the um the contract amount that Chandler provided to their all of their staff so the total pay increase amount is just under 10 10 million dollars 9.8 million dollars so can you just tell me exempt Sports staff name that directors who would be exempts so Jackie is a director right and so that would be an administrator um but Ashley Miranda she's our budget manager Barbie Wells is our purchasing manager they would be exempt support we have analysts

114that are exempt in both otm as well so if they're in an upper level classified staff position they might be an exempt support person correct okay there's a supervisor because my concern was a dollar an hour for a beginning person on minimum wage or in some of those beginning positions that's a that's a pretty good race for someone who's um more of an upper level person that's your point okay where the minimum wage individual would see a seven percent increase but the dollar per hour actually ensures that we're not uh provi we're not in in um we're not compressing right so because everybody is moving a full dollar per hour um and then we're looking at how we're going to increase the base rates at least at the beginning we're only going to increase the

115base rates the starting rates by 50 Cents until we're obligated to increase them at minimum wage and then we're expecting if minimum wage does go up higher than that we may have to make a mid-year adjustment okay so to clarify with jail this comment go to teachers their three percent increase is based on what they're currently getting paid that's the case rate that's right what they are being paid yes exactly okay so here's our total budgetary increase need so we're taking the ongoing available budget again the statutory budget we're looking at our projected savings we're subtracting the non-discretionary increases and subtracting the discretionary increases which does include our recommendation for pay increases so the final deficit is about 12.3 million dollars so we have to find the resources to close that 12.3 million dollars I'm

116sorry we don't find anything we have to make a decision about how we're going to close that gap of 12.3 million dollars we know we have to prioritize right we have to prioritize so the next slide okay how are we going to close that 12.3 million dollar Gap first of all other fund contributions when we do these analysis we we look at every single position and we do not look at funding source and we create what we think we need based upon all funding sources contributing however we know that Community Ed we know that nutrition services we know that jted we know that title one in particular they fund their own increases so we did those analyzes and there's about a 760 thousand dollar contribution from all of those other funds against that pay increase

117so basically we're removing that Personnel from because they're they're going to be paid by those funds so we remove them and that 76. 760 sorry 760 000 and then but we still have to fund the rest because they'll be paid out of Maintenance and operations that's correct okay I appreciate that this is why we have to talk this over not just look at it that's right that's true that's true so the other main contributor is the classroom site fund so as I shared with you in the board brief we did receive our information on the classroom site fund going into 2024 again the state economy is still in very good shape and and it's also a contributing factor to the inflation increase however they they are indicating to us that we will receive fifty dollars

118more per student and I believe Jackie you calculated that what does that fifty dollars more per student mean in terms of a total dollar amount for for Gilbert [Music] like I thought you said I didn't have to talk I thought you told me it was around two million dollars more in classroom site fund yes okay could have sworn you told me that maybe I dreamed it I'm sorry I'm not gonna hold her account I'll let you know for sure in this week's board brief with a dollar amount would be um so and regardless it's an increase so it was at 708 it's now at 758 dollars per student so we're uh we are recommending that just over five million dollars come from classroom siphon to help us close that Gap and then Medicaid Medicaid is

119one of our operating funds that we share with you every month and we looked at well what is our ongoing Revenue in Medicaid we have a fund balance that we've been carrying over over the last few years but what what can we expect in revenues annually and so we determined that we can expect about two million dollars annually so we're going to allocate out the Medicaid fund dollars into our budget balancing process that leaves us with a 4.5 million dollar hole that has to be filled by one-time monies and that's where the 20 million dollars in unrestricted Capital would come in so the next slide is going to share that strategy with you so remember we did the one-time District additional assistance Revenue um I'm sorry yes we are recommending a one-time District additional Assistance

120or unrestricted Capital Revenue allocation in the amount of four dollars and fifty cents so what you would see on the adopted budget presentation to you in June you would see that we we are recommending that we take the revenue control limit that normally would go into I'm sorry opposite that the the district additional assistance that would normally go into unrestricted Capital we would make a recommendation to you that four and a half million dollars of that would come back into the revenue control limit or back into maintenance and operations remember that we still have over here in unrestricted Capital that additional 20 million dollars minus four and a half still leaving us with um what is that 16 and a half million sixteen fifteen sorry fifteen and a half million thank you fifteen and a

121half million dollars still held in reserve in unrestricted capital I just want you know kindergartners are learning to do that kind of math in their head I know we didn't learn that so we still struggle sorry sorry so again I wanted to remind you based upon the monthly financial report of February 28th the maintenance and operations available balance is 12.2 so we are anticipating we would not draw down that budget balance carry forward that does represent four percent which is our Target and policy um and we'd still be able to meet the needs of our increase uh going into fiscal 2024. and then uh yes so then then the other conclusion and three which I already stated so um a couple of things yes we're using one-time money for an ongoing cost I just wanted

122to remind you and we'll go through this at length at the end when we talk about risks and opportunities but remember we're so early and remember that in the current year we we anticipated or projected a 400 student ADM loss and we lost 270. so that 130 student gain from projection amounted to just under a million dollars so there are some very real possibilities that the budget will will improve going into 2024. but again things are changing so fast every day and so we won't really know until we are until we are until the legislature is done so I'm going to go through the next slides pretty quickly these are the unrestricted capital budget capacity these are the same can I just yeah I think that that's really even though we're gonna use one-time money

123I think that's exactly what we were waiting to use it for we've kept saying when are we going to use this how are we going to use this and I think it again reflects our priorities of um of competitive wages for our all-important staff and teachers everyone who's on our campus who works with our students or gets them to school and provides what they need to every day so I'm even though we're looking for we're looking at using that one-time funds I think that is appropriate to meet that priority which we have we're committed to at least I feel that we are so I'm I'm glad to see that so thank you and I think some of the conversations we've had in the leadership team meetings is really about oh my gosh we have to

124put teachers in front of our students we absolutely have to have to hire we have to we have to fill our positions in order for us to be successful with our students so I think that's what finally led us to making this recommendation to you as well so these are just the the formula again so with you can see that the PK 8 and the 912 you can see that with the statutory uh projection versus what's in the current year it's exactly the same because the district additional assistance does not see an inflationary increase just so you know the governor's budget did include an inflationary increase for the district additional assistance and then go to the next slide Jackie and so these are you can see the the the budget is a little bit less

125than it was in the current year by about what is that 20 nearly 20 uh two hundred thousand dollars reflective again I shared with you that the district additional assistance is based upon prior year so in 20 uh 2021 that informed the 2022 budget 2022 student council informed the 23 budget so 23 is lower than 22 so that reflects that small decrease in that dollar amount in the unrestricted capital budget so risks and opportunities preliminary budget risks the aggregate expenditure limit has still not been dealt with forever we have it we did have the legislature approve overriding the limit again in the current year it's still looming for 2024. we could see a greater loss of students than that 400 student projection we generally have been successful by assuming a 400 student loss we are

126meeting every month and now we're actually meeting every couple of weeks an enrollment student account enrollment committee that's with me and Jason and Joanna Catanzaro and Don antisdennis so that we can see where our holes are and start driving up efforts at our schools to make sure we're getting all these open enrollees in ETC they could have a positive impact also on our student accounts but we could have less than that 400 student loss um and then the legislature could decrease funding level we do not believe that to be probable the we believe that the budget capacity projection is the most conservative just assuming a two percent amount on the base and then use of one-time monies always decreases future budgetary flexibility but and we've all said this more than once in the leadership team

127the way things have that the way things have gone over the last five years we can make a case that every single year is a single year and we should always be planning on one year of spend because we can't tell at all what's going to happen in the future so and then the opportunities we could receive just as we did in the current year we could receive more than that we projected in terms of the students instead of losing 400 we could lose 200 or 300 instead providing a budgetary gain the legislature could approve greater funding there are bills out there to provide more resources to school districts in Arizona and as an example if the governor's budget of three percent just over three percent was approved we would see an additional two and

128a half million dollars in our budget capacity which would significantly close that four and a half million dollar Gap okay and then turnover savings again also remember that we did budget a two million dollar pot to handle years of experience and hard to hire additional pays that two million dollars if it didn't have to happen because we had a sufficient turnover savings that would be another two million dollars that could close that four and a half million dollar Gap so I just wanted to make sure that you were all aware of that and I think that's the end and I think if I could Dr McCord I think that we're planning on the special meeting on the 11th to formally present those pay increases to the governing board that is correct as well as possible

129premium holiday and a retention possibility of retention stipend I had hoped that we would that we would we we may wait on the premium holiday for formal approval until the end of April just to allow the committee and the trust board to to meet I would like to make sure I I can present the information both to the employee benefit committee as well as the um the trust committee um that would give them faith that doing two premium holidays is actually um affordable and um and probably the right thing to do we are projecting a increase in our net position or fund balance in our employee benefit Trust of over three million dollars and that's a very conservative projection so the two premium holidays would draw that down by just about two and a half

130million dollars so there is room there for that as well uh Mrs Betts I do have one question um when you talked with your counterparts in other districts do you feel like they're also using some of their budget carry forward to address races um I mean in the same place I can't tell you for certain because when I've reviewed when I reviewed their budgets they're not explicitly saying they're using runtime monies some of the language indicates to me that yes they they probably are but they don't have any more information than I do regarding what their funding level is going to be and just one simple example for the first time in a long time Chandler was obligated to revise their budget down because they overestimated their student counts for the current year so they

131too are in a similar position as Gilbert public schools in that we are seeing schools I mean we're seeing seeing students the the growth rate in Chandler is decreasing yeah so I mean because they have been adding students for a long time and now they are actually um dealing with some of our challenges which are you know more settled right not as many homes being built and and so not as many students coming in and then alternatively Queen Creek is growing by over a thousand students annually and even even based upon the information that we were able to pull off of their board agendas they still were recommending a two percent pay increase and a dollar per hour so they're still being conservative as well thank you can in regards to this four and a

132half million dollar one-time um amount from the it's it's um yeah from the uh from the reserve that we placed in the industration capital um if we if we do have a 400 student loss if the governor's budget doesn't get approved and it's you know less than we expected can we will there be any money in this uh the school's Capital spend that we could use to close that Gap so for example it says 2023 spend an encumbered year-to-date is 5.4 million dollars um if we were anticipating something similar to that in 2024 could we instead of I mean you know it'd be a shame to take that hundred thousand two hundred thousand three hundred thousand away from the schools but if we needed to could we use that money to close this Gap and

133the process would be exactly the same because it's still in unrestricted Capital so it doesn't matter really whether we're going to use the reserve or use unrestricted Capital the result is the same okay all right quickly um [Music] maybe before you came here there was some concern about using Medicaid money but I really feel personally that it's why not use it and that is probably something that's not going to decline um because we continue to get probably more and more on needs that do get reimbursed so I really support using the Medicaid money as as not just being one time and and we did we did purposely put it into the operating fund grid because it does have flexibility you have to be careful it is considered Federal money so you have to be careful

134to make sure that you're not impacting your federal maintenance of effort that you're using it that you're not funding staff that that would be contributing to special education so you wouldn't want to put special education staff in other words into Medicaid but but but Jackie's team is very well versed on the rules and we feel confident that we can do that so I just wanted to ask what was the what was the reasoning which I think is a good idea to have a special meeting next week we just thank you yes great question so we have already issued contracts to all of our certified staff and um they in good faith sign those contracts knowing that when they did that that they had no idea what their any compensation would be for next year and

135so part of us getting this out as soon as possible we also haven't been able to get anything out to our hourly staff our support staff and so if approved on the 11th on the 12th we will start rolling those contracts out and then otm will be in the process of configuring addendums to those contracts they've already signed to make sure that our certified staff have the figure going into next year and then at that time they'll also be able to choose the number of pays that they'll have for the following year so it's uh it it's to help make sure people are safe and secure and sound in their in their minds and so going forward just I agree with that as soon as as soon as we can we feel like we have

136enough information now we didn't feel like we had we could really quite say that in February we we know the classroom site fund we know some other things have come in so we have a better idea and feel confident that this is how we can go so I'm excited that we're doing that I wondered are we going to have and do we need to have there's no statutory thing like we have to have a call to the public are we going to have anything like that might just be a special meeting it would just be a special meeting with uh one or two agenda items related to this and maybe a consent in general just because we have the opportunity to continue to improve things going forward we'll do that but other than that that's

137it it's a real skinny agenda okay just to really to focus on this and make sure that we can get this in our let our employees know as soon as possible correct and I think it will happen you know and I think having this presentation uh and if there's any questions more from you tonight or after you go home think about some things you know gives you time as well as a board to to sift through it and uh having a week to be able to do that for me I I really appreciate that time to think before we vote because it does take time to to sift through all of this and mull it over and and think about what concerns could there could be and ask those questions but I do appreciate not

138voting on it tonight so we can have that opportunity well if I could just um if I could just add remember I think it was a year ago that we were presenting a similar budget to you and indicating that okay we're going to close the gap with one-time money of about 1.9 million just under 2 million dollars if you remember and I remember clearly Charlie looking at me he says okay so we can do this for a good like four or five years right and yes we can do it for a good four or five years my my only point in presenting that or reminding you of that is that we closed that two million dollar cap already based upon what happened in the current year so um and and I think the other thing

139is and we've had these conversations over and over again in the leadership team we know that we can't walk into a school year without having a balanced budget we have balanced the budget we are not going to be at risk of having the state take us over and we know that moving into the future that we may have to make some substantive decisions that might be not the most the greatest thing that we would have to do but we are committed to making sure that the balance is the budget is balanced annually so I just want you to all be aware of that too foreign thank you for these presentations tonight well done guys thank you nice we will now adjourn our work study and I will call the brief board business meeting to order

140and ask for a roll call Mrs Wilson Mr Chad Thompson here Ms Rhonda page here Miss Laurie wood here is Jill Humphries here Miss Sheila eugetti your Madam president all board members are present you have a quorum thank you that will take us to the consent agenda items 5.01 approval of consent agenda items board members is there a motion I move that we approve the consent agenda items as presented thank you Mr Jetty it's been moved as our second second thank you Miss Humphries it's been moved and seconded that we approve the consent agenda items as presented board members I'll ask for the vote all those in favor please vote by saying aye any opposed are we allowed to discuss any of these items uh typically not on the consent but would you like to

141remove something from the consent no I don't think so so I'm an eye okay let me do the skin then um so it's been moved and approved that we it's been moved and seconded that we approve the consent agenda as presented I guess since I could ask for a discussion typically on consent I don't okay that's fine well since you didn't no I will tonight I will ask is there any discussion because it's the consent agenda if he wants to discuss something then he can just make a motion remove the item that he wants to discuss and then we would vote on the consent agenda and then we would vote on we would make a motion for the item or Chad could make a motion for the item and then we could discuss that item

142and then vote on it sorry my um it was more wanting some clarification on something not and that's fine if you want that then let's let's why don't you make a substitute motion to um the consent agenda item removing whatever number you want and then make a separate motion on that one then we can discuss it I I don't think it's necessary I think you can always call and ask tomorrow yeah okay that's that's what I'm that's what I'm thinking that's great I appreciate that and again like she said that's typically how we will how we handle it because it is consent but always you're welcome to remove an item and then we hold that item just for discussion and the rest of the consent items we would just approve without okay so thank you

143for clarifying that going forward as as uh as a board great so I will call again for the vote then it's been moved and seconded that we approve the consent agenda as presented all those in favor please vote by saying aye aye any opposed with nay it passes five zero and that will take us to the adjournment of the brief board business meeting board members is there a motion I moved to adjourn thank you Miss Humphreys it's been moved is our second second thank you Mr Page it's been moved and seconded that we adjourn all those in favor please vote by saying aye aye any opposed with nay okay we are adjourned 5-0 thank you all okay Chad what did you need