001It's 601. Why don't we get going? [Music] Next thing is flag. The flag is to stand. allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. the roll call first and then on the budget committee if uh when we get to you folks if you could uh introduce yourself and just tell you in town and maybe something else you know okay so let's see on board Nathan got Nathan and Mary Schillingly not here. Uh Dallas Panra is in Louisiana with his father Jim Jordan. I'm here the same. Julie Feast is here and Michelle Roberts board members and then coming to the appointed budget committee members. I'm Chris Hill. My wife works within the school district. I
002have two children in North Bay Elementary School and happy to be here. Jeff Bridgens. Yeah, I'm Jeff Bridgens. Um finance director with the city of North Bend. Um I also have uh two children in the uh Northbend School District, both at the high school. And uh we've also got this uh conflict of interest that I'd like to just read and get out of the way. Um, a potential conflict of interest is organ right statute 24402013 requires me as member of the Northbend School District budget committee to declare a potential uh conflict of interest since I am married to uh an employee of the Northbend School District. Uh my wife uh Jen works in the business office. Um, this declaration recognizes that the action by this committee could have a financial impact on me and my
003family by making the statement I'm allowed by law to participate in discussion and debate as well as vote on the proposed north school district budget should any decisions come up regarding like the business office specific. So I read that as well. Um, the potential conflict of interest for enter statute 244.020 02013 requires me as a member of Northbend School District budget committee for their potential conflict of interest. Since I am married to um an employee of the Northb School District, my wife is the director of the teaching and learning in the district office. This declaration recognizes the action committee could have a financial impact on me and my family. By making this statement, I am allowed by law to participate the discussion and debate as well as vote on proposed Northbend School District budget. Thank
004you, Chris. Why Van Gordon? Um, hi, I'm Le Van Gordon. I um am a project manager at an advertising agency. Um, not a local company. I work remotely for a company out of Salt Lake City, Utah. Um, I have two kids. at the middle [Music] school be there and then um I don't know Bob and I have given essential life for 30 years and North Bend. Son graduated from um North High School and I worked with the city of North Bend for 36 years before I retired. Timmy Kirstson, absent Jeffrey Lane. Uh hello everyone. I'm Jeff Lane. I'm the CEO of Coke Valley Hospital. Um we've lived in Northbend for coming up on eight years now, I think. And we had uh one child, our youngest who went to school his junior and his senior
005year at work high school. So yeah, uh I also have a conflict that so or review by statute 244.02013 020 sub13 requires me as a member of the Northb School District budget committee to declare any conflict of interest. Since I am married to an employee of the Northb School District, the wife is Tracy, vice principal of this declaration recognizes that the action of the committee could have a financial impact on me and my family by repeated statement. I'm allowed allowed by law to participate in the discussion and debate as well as school district. Thank you Rodney Stalker. He's okay. So make it a we got five appointed budget members and four of the elected budget members. So we have nine and who knows how many we need per reports. Eight, right? Okay. So good there.
006Thank you. All right. Agenda item three, approval of agenda. Is there a motion to approve the agenda as presented? So they have made a motion. Julie made a second. Is there any discussion? Okay, we'll have a vote. All in favor say I. I guess that any in favor, any naysay, I guess. Okay. Agenda item four, elections. Uh 4A, chairperson. So, uh we're going to have an election for the chair. you will get the gavl and uh you will carry forward from this point on for this budget meeting in the subsequent are there any nominations for the chairperson Chris, any further nominations? I would like to make a little campaign speech. It is always better, I feel, to have a member of the appointed budget committee uh member from the community to chair this. Okay. Um
007All right. With that, we will have Do Okay. Did you have a campaign speech? Okay. Uh, with that, we'll have a vote. Who's going to vote for Jim? Thank you. Loyalty is an Okay. Loyalty is an undervalued trait. I think I think he vote for I got two votes. Who would like to vote for Chris? Put your hand up. One, two, three, four, five, six, seven. I got seven for Chris. Chris, you're the chairman. That's close. And I would like to thank like to thank you too, guys. Chris, you're the chairman. And so now you uh you go ahead and do the elections for the vice chair. Thanks. Right. So now we need to uh elect a vice chairperson. Do we have any nominees for a vice chair? I nominate Bob. Well, I'm giving this
008the next meeting. Oh, all right. I withdraw my second. Are there any other nominations? All right. Everybody would like to vote for Jeff or the vice chair say I call nine. Any nays? No. All right. Um Jeff Lang will be the vice chair. And now we'll need to vote for a secretary. Are there any nomination for secretary? I nominate Dr. Bridgette. [Music] Are there any other nominees? All right. Bridges for secretary. Everybody in favor say I. And everybody opposed say nay. All right. Carries 90. The secretary voting to be Jeff Bridgens. And on to the next item of the agenda, the 2025 2026 budget message. All right. You have my message. So I just a couple of things right off the bat is our budget plan to make sure we do to make our align
009with our priorities district and you can see what the core goals plan are. uh foundation ready for success safe supported connected and present continuous growth and academic achievement for success beyond the graduation and so just to start off with let you know that what we're putting in this document helping us achieve what we're trying to our school district for our students um also want to let you know that um the budget is built on 11.35 59 billion in state school funds that is currently on the table governor budget and the joint co-chair budget in the legislation. So at this point in time that is the amount that we believe will be coming to schools. That's that's what we can we feel like we can bank on. Uh even with what's happened at the federal level,
010we're still hearing that this number should stay sol. U it's it's more likely to impact things that are not a part of this 11.4 if you will. Uh for example, uh if you're if you're tuned in to what's happening specifically with education bills, uh they're talking about raising the special ed cap from 11% to something above that and then uh adding more funds to cover that difference. Uh it's things like that that they're worried about. um not so much this number here. So, we're building a budget on what we believe is the most solid number that he continues to come out of. Um the OA um OASDO with the Oregon Association of School Business Officials uh KOSA or Department of Education and uh and OSBA school board. So 11.359 is where we're building the budget.
011Um what we also know from this is that we get um all the schools budget 51 or 49 to 51. So in the first year by 49% in second year 51% that's to help offset roll up costs. Um now the next thing I just want to mention is that our biggest challenges uh is low birth rates. Low birth rates means that we have fewer students coming into kindergarten. We have graduating as seniors. The example of that was last year who graduated approximately 150 seniors. Um 101 students signed up at the beginning of the school year as a kindergarten. Uh and so um those that low birth rate over time is going to significantly impact our enrollment which means that we have to be extra vigilant about um our we are certainly in a mindset of
012scarcity not a mindset of surplus and that was a shift that was been two years coming once the funds went away at the federal level we really had to shift our mindset to that scarity in that circumstances. So, um Tim and I and our team are setting forth a budget that is um that is certainly of course a balanced budget, but a budget that has its eye on our changes in our enrollment and the economic situation that we have to be. Okay. And then um some things that uh have essentially had negative impacts on the budget. um we see doubledigit increases in utility rates um that are impacting us. We also know that um the state legislature, not the current session, but the previous session passed the law that said school employees or classified employees
013in the summer. Even though they know they're coming back, they can apply for unemployment insurance in the summer. And those costs are directly um that come up. We pay unemployment on a dollar for-dollar basis. We don't we don't put money into a pool and then they draw from that pool. So when one of our employees receives unemployment benefits, whatever they get, it's build to us directly. So those those costs um last year um it was more than we thought it was going to be. We have a hard time guess what that looks like budgeting for hundreds of thousand dollar it's going to be in terms of our pretty much we feel like this summer it's going to be worse than last summer because more people know they can do it right. So those kinds of
014costs are going to grow I think over a three or four year period and we're not exactly sure where it's going to end up but we're trying to be cautious and not over budget for that and understand it. So it's it's a real challenge for us but we know those costs are going to continue to use and of course we don't know uh some any kind of particular unfunded mandates that come out of current legislative session we're going to have to process next year. So unfounded mandates at school level are things that state of Oregon through the legislature or through OD state board of education require that we do but they don't give us any funding to do it. And so those are pieces. For example, we just said there's an unfunded mandate required to
015pay employment insurance, but they didn't give us any extra funds to offset that. Also want you to know that we're being aggressive. We continue to be aggressive about alternative sources of funding. Um you will see examples of uh grants and construct the funds that uh that we search um to try to um get those grants so that we can many cases offset the pressure on the general fund and our state school support money. So physicians that are funded with with grants and funds like that. I do want to say one last thing. It's not in here. It hasn't even really been publicly announced, but we found out earlier this week um that we are recipient successful recipient uh of a seismic um retrofit grant that will apply at North Bay. That was the project that
016was selected. Um that's a two and a half approximately $2.5 million piece which you have um you have a budget that's connected for that grant. We just found out this week we're going to be able to seis seismically retrofit the gym and that project we believe um or well we think the big part of the project is going to happen in 27 but we're going to put the the um make this happen in this budget. We're going to understand it for sure in this budget. We'll have it there already appropriated because we have to have it in our appropriations before we start the process. And so the beginning process was included things like architects and and some you know very specific tasks so that by the summer of 27 we're ready to actually uh do
017the project itself. So we're excited about that. But that's again an example of what we're trying to do to try to think good things out for kids um and use grant funds and construction funds as much as possible so that we can take a little bit of pressure off the board. So with that um budget message is complete questions any questions. All right. Thank you Vince. I'd like to welcome Rodney Stalk introduction. Would you like to introduce yourself now? Well Rodney Stalker good enough. Sorry. All right. Um on the budget item number six, the bud budget presentation open for discussion. Is that right? Uh no actually I'll present right now and um I mean we could skip ahead. I'm with you here. I ate dinner too, so I'll try to stay awake. I did just
018open a sparkling water if anybody heard that open up for the public. Sparkling water. Um um so our budget vision um we we've aligned um with our strategic plan. As most of you are aware, we've gone through a strategic planning process to build a new five-year strategic plan that aligns our focus and our goals for our district. And that had a super high level of community involvement, staff involvement, and student involvement. So that was um one of our priorities when we were building the budget. Um prioritized foundational readiness, safe and supportive learning environments, continuous academic growth, and preparing students for success beyond graduation, which um really are the four primary goals of our strategic plan. We also wanted to maintain um high qual make sure that we were maintaining high quality education for students addressing
019the unique needs of every learner ensuring that there's transparency throughout the budgeting process and uh making reasonable decisions that support financial stability and long-term sustainability which has been the key I believe for everybody trying to create a budget is that sustainability piece but it's been particularly ly a challenge since the end of the ESSER funds, the American Rescue Plan um from COVID and also with our declining enrollment and increase um costs across the board. Um so one of the things here um in regards to the transparency um that that we wanted to make sure um we point out right as we get going is the budget committee received bound budget books and after those were bound we did learn of the um seismic retrofit grant um that was a grant um WRK engineering applied for
020that grant for us and they had done a seismic um analysis of our district and also then submitted for that grant and we received grant funding. So that was just on the first I believe that we found out. So what was posted early was the budget without that included. And so what you've all received copies of tonight that's not bound um is the revised budget with that included. You also have a proposed budget adjustment sheet that shows you the overall change that 2.499 million And this was posted on the public website this morning. Um so it was posted, you know, before the meeting um at the same time you're receiving this and um which meets our budget law requirements and the there's minor changes throughout a couple of the pages where where we get into
021the capital project funds and the 4000s. You'll see some minor changes there. Um there it adjusted some of the percentages slightly too. like at the front of the budget book, you'll see some piraphphs and some percentage percentages listed. Some of those just changed very slightly. So, which is why we just felt it's best to present a whole new book, give a whole new book to you, give you the adjustment sheet and make sure that that was all posted. Um, so the public could could also see that. Um, so that is a grant that we're very excited to receive. Again, our strategic plan goals, foundational readiness for success, safe, supported, connected, and present, continuous growth and academic achievement, and equipped for success and beyond. And those are all students um are budget assumptions. Did I skip?
022Okay. Skip ahead. Is it not letting me go back? There we go. Assumptions used to create the proposed budget. So, the budget committee receives a proposed budget. um we'll present it um tonight for you and um kind of go over this overview presentation to give you the higher level view. We'll walk through the document to kind of get you familiar with that. Um we'll try to answer as many questions as we can tonight and um of course questions will be collected throughout the week and we'll come back together next week and um try to answer all those questions for you and um and see if we if we can move forward next week or if we we again need another meeting after that. So um as Vince had mentioned the state school funding is at
02311.35 billion for the state. That's for a two-year bienium and then the state takes that and splits it up and gives you 49% the first year, 51% the second. So, um it is supposed to address rollup costs. However, it's it's a little short of that usually. Um this year, of course, it's a we're going into the new bienium. So, that's also one of the challenges as you're building the budget is is you don't know 100% what you're going to get when you start this process. Um and so um luckily we do feel pretty solid that this number will stick. Um sometimes it can come in a little bit higher. We don't anticipate it to come in lower. Um we've facing continuing declining enrollment. Um we have a general fund. Um the the support functions have
024increased um just pretty much across the board. um utilities, insurance coverage, student transportation are some examples of those support coverage. Um things that have increased also um increased um labor costs. Um we just finished negotiations with our certified union and they will be receiving a 5% cost of living increase next year. And that um also applies then to all classified because in the classified negotiations um they piggyback on that in in year two of their contract they they get essentially what certified get. So we're going to see 5% increase in salary costs that also had to be included into this budget. When we're looking at the budget as well, what we're looking at here is essentially status quo staffing wise. So, we try to build the budget showing you what it is to maintain current
025staffing levels. And you'll see a little bit um here as we get down the road a little bit in the slides um kind of how that how that affects us in our long-term planning. So, um our enrollment numbers right now, so we built the budget with a projected enrollment in mind. um those projections get submitted to the state in December. So we're trying to already start the process very early in the year. Um so at the time we submitted that we were projecting about 912 students to start the year next year. EVA is Evergreen that is the virtual charter school that our district sponsors and they've projected 950. Um, Evergreen has been projecting higher than their actual enrollment um, the last couple of years. So, we do anticipate this number to be high. Obviously, we're
026hopeful that they can hit that number, but it typically is high. Um, back to the Northbend side, you'll see 2425 in September, our enrollment was um, 1,955. Now, last year when this was presented to you, we were projecting an enrollment of 2001. So, the budget for 2425 was built around 2001 students. In September, we were already at 1,955. So, we were already down a significant chunk because each one of those students is about $10,600 of our budget. So, um, now as of just the last, um, board meeting, we were down to 1,894. So, this is one of those examples of how when you're building your budget, you're you're kind of looking in a, you know, crystal ball trying to do your best to project it, but it's it's typically changing just as you're building it.
027So, we know we'll be right now probably lower than 1912. Hopefully not too much lower, but um we are um pretty low right now, just about 1,900. So um a big decrease from where we built the current year budget, but we typically show you when we build these um trends based on September 30th enrollment to just give you sort of a the same point in time except for 2526, which of course is the projection. Everything else is a real number as of September 30th. So here you can see our enrollment trend over time. ADM, if you're unaware, stands for average daily membership. Here you see Evergreen Virtual Academy. And you can see the the giant spike here that happened during CO when schools had to then serve their students virtually. A lot of parents chose
028to withdraw and enroll their students in virtual academy. Evergreen accepts students around the state. So that's why they saw such a huge increase and then they've been declining sort of in this declining pattern ever since. We're now at a point where we should see them stabilize and they are starting to stabilize too. So for us, 100 students that drop, every hundred students that drop is about 1.1 million. For Evergreen, every 100 students that drop is about 66,000 of revenue to us. So, another thing that's a little bit unique about our budget versus other school district budgets is the fact that we host a virtual charter school because what happens is the state pays us for their ADM for their average daily membership and then we pass through a majority of that to the charter for
029their operations. So, we have a separate agreement with them where we maintain five to six% of that. So that's where that's where we make the make um a revenue stream out of hosting the charter. And then of course we are responsible for um ensuring that they're in compliance with state laws, federal laws. So a different effect on us, but it is still an effect when they're dropping because we're building a budget based on their enrollment as well and on this extra this extra revenue. So they show up and purchase services in our um in our budget. Um, so it looks like there's an enormous amount of money going out and purchase services. That's because it is money that flows to us and then flows through us back to the charter school. So again, as we
030discussed, enrollment directly rates relates to the state school fund. Um, as our students are going up, we're getting more state school fund dollars. As they're going down, we're getting less. Um, those those adjustments aren't immediate through the state. They they come throughout the year. And then there's reconciliations in May of the current year. And then May of the following year, moving into 2526. So this current school year, it was about 10,600 per student. Next year it'll be about 11,94 per student is the amount states will fund equates to. Um and that is an increase of about $65. Last year we saw an increase of about $829. So that's another challenge is that that that state school fund it doesn't increase at a consistent level. um what so so it's hard to meet the needs of
031rising employee costs and cola requests from our unions um when in fact we don't always know that we're going to see a consistent increase from the state year to year. So overall, the state school fund including Evergreen is an increase in funding of um almost $800,000. Of that Evergreen Virtual Academy has an increase of about 574,000 and Northbends about 223,000. So again, you're seeing a budget that's built on um you know, a stable employee workforce here with some declining enrollment and all these costs increasing. Yet we're only seeing a state plan increase that we realize of $223,000, which you're probably asking yourself, how can you do it? And we will answer that question here shortly. Um some of the shortfall contributing factors are the rising costs inflation impacts goods and services across the board. Um
032PERS costs continue to rise. Um our compensation for employees and student needs are growing. Um providing additional services within the schools. Uh limited revenue. The state school fund dollars fall short of our operating costs. Federal funding is uncertain and could impact future budget years. And um we do have fewer students that were enrolling than um we are graduating. So um as a significant factor on us and as Vince mentioned the the low birth rates are a factor and as our people that are leaving the state. So um obviously when we have opportunities to increase enrollment it is a it is a good thing. um you know we can't plan now in the budget for like the port project for example but that would be an example of a major project that would have a significant
033impact on our schools and bring in a lot of revenue. So all district funds for 2526 so again this is the state school fund and all other funds too. So, this is going to include grant funds as well. Property taxes is proposed at 68,632,000. That's the updated amount including the seismic grant. What was in the initial document posted back on the 28th was 66. So, our adopted uh 2425 adopted budget was 64.5 million. And so we're seeing an increase of about with the seismic grant about four million is our increase. And the seismic grant we put in here just it's in it it's you'll see it later in the budget, but it's in its own category. It it'll sit kind of in a spot where you can just see it outright. It's not mixed in
034with other things that to make it hidden. I'm in I think it was 2027 we anticipated actually getting the construction done summer of 27. So here's again one of the pie charts for example and one of the beginning pages of the book that was originally published and bound. Um, some of these percentages might have changed slightly, but you can get an idea of how much of our budget is built around the general fund and um, special revenues, debt service, capital projects. The general fund is our primary operating fund for the district. It finances pretty much any day-to-day operations. I mean, it can pay for salaries. It's the one we have the most freedom over, I should say, salary, supplies, transportation, utilities, building, and all kinds of things. So, special revenues is your grants, proposed budget
035for the general fund. So, we're going to kind of shift focus and look just at the general fund. Again, primary operating source 2526 proposed budget of million14,73 an increase of approximately 3%. So here again is showing you sort of the general fund expenditures um 57% of that goes by instruction and um support services about 32% and others 11. So the function when you're looking at our budget there's um there's the fund and function level and the budget committee is adopting a budget on fund and function. We do get into the object level in the in the books um to break it down even further but think of function as telling you the purpose of the funds. So in terms of function you know is it is it for instruction direct tied directly to instructing children
036or is it supporting that process of instructing children. Um in the general fund by function you have primarily your instruction support services community services debt service and transfers and contingencies. So you see a comparison from 2425 adopted and then to 2526 proposed and we're looking at um again instruction um here it is including at this function level it's including our charter school and the amount we pay them. Um, our support services like utilities, um, transportation costs are included here. Um, the transfers, debt service and transfers, um, you'll see money in here in the budget that's transferred. It's got our unemployment allocations in there. We have capital improvement fund in there. And then there's some other um, reserves that are planned, things that um, I I discussed um, last year. And the and so I'll explain
037them again here. the transfers. Um things like textbook reserves, the these things have to be planned ahead of time because a textbook adoption is very expensive and and textbooks happen on cycles. So the state requires you to adopt a new textbook every so many years. If you're adopting in language arts one year, you might see a $600 $700,000 cost. But if you haven't planned ahead for that, that becomes a huge burden on your budget that year. um things like the the technology replacement cycle. So our computers are on a onetoone basis with students. So we have to plan for the replacement of those um you know the the Chromebooks only last have a lifetime of so many years that and then that you can even get get them updated through you know through Google. So
038we um have a replacement cycle for those. Um the field turf is a huge um cost. Um, you know, you could be looking, I think, you know, right now maybe $600,000 is what I'm seeing other districts pay to replace just the turf. That doesn't include the track. That doesn't include other major things that need to be done underneath it if there's any damage. So, if you don't plan ahead for those types of costs, I mean, you can you can really see get yourselves into a bind as a district. So, that's what those reserves are. So, we plan for them in our budget as transfers. build them into the budget and then transfer them through the year into these reserve funds so that they can be there when we need them in the future. The contingency
039is also known as our ending fund balance. So the contingency is where we're putting that ending fund balance that um as as the board knows I talk about as again something that we have a high priority to protect. It's something that we always want to have in place. It really is what provides us with the financial stability we need as a government entity. The ending fund balance is essentially our financial security. Um helps us cover cash flow needs, emergencies, unexpected um revenue shortfalls, and that contingency. It ends up being about 9% of the general fund, but it takes into account um two different things. And this is per board resolution from 2011 and board policy which we we added recently within the last couple of years. And um that requires 2% of general fund revenue
040as part of that contingency and then 5% of all revenue. So that's where we we say the word 7% but it really comes out to be a little bit more when you house it all in your general fund because it's a smaller chunk of money but it's counting for a reserve uh contingency of all the funds. That makes sense. So when we propose the budget, what we've done is we've built it to ensure that that 2% and 5% are there at the end of 2526 to meet board requirements and to be financially responsible. Moving into the object level. Um so again think function and then object is more the um the type of thing we're actually like getting. What are we getting? Are we getting are we paying this into salaries? Is it you know
041supplies and materials like books, pencils, things like that. So you can you can look at it from function the service and then what is it that they're providing. So it's kind of drilling down a little bit deeper. So, we're seeing in salaries increasing by about 400,000. Uh, benefits increasing, purchase services down a little bit. Purchase services is again where you're going to see Evergreen Virtual Academy, supplies, capital outlay, debt service. So, uh, on the far right you see if those are increasing or decreasing. And then as you we delve into the budget book itself, you'll actually see where they are increasing and decreasing. And that's where we want to make sure we're answering your questions as we get into that budget book. So again, you saw the transfers on, you'll see them, you know, here
042in in function. You also then again see them happening over here in object two. So we have a little increase in transfers as well and our contingency once again as of July 1st 2025. Our estimated ending fund balance which will be the beginning fund balance in this budget for 202526 is estimated to be 8 million. In June 2026 it's estimated to be 4.2. So that's where back here I was showing you that contingency is the ending fund balance. 4.2 is the 2% and the 5% for board policy that we need. When we built the budget, like I said, we were building it, showing you all staffing at current levels, but all those costs increasing. This is the page here that shows you the outcome where we're ending the year with about $8 million. Um, almost
0434 million over our requirement. we're now going to have to budget to have the appropriation ability to use it, which will drive us right back down to the minimum requirement per board policy. So, in in other words, we'll be using 3.7 million of our reserves in order to get through this 2526 budget if we maintain the staffing levels where they're at. estimated ending fund balance of the general fund 9%. Here you can see sort of the history of those reserves. Um again when you're when you're back here in the past you see these are actuals um after they've been audited. Um 24 25 we're looking at the estimate of about 8 million and then next year estimating 4.2 million. Again a big drop there. That is the effect of all those rising costs, the increased
044labor costs if we maintain current staffing levels with our declining enrollment. Um, so I'm shifting from the general fund and you might be thinking of some questions. Um, we'll we'll get into the book and the format of that after I go through through some of these other funds and then again, like I said, we'll we'll have a chance for you to formulate your questions throughout the week. Send them in and we'll answer them for sure next week and we'll try to answer again tonight. So, we'll highlight some of our other grants. So, this is getting more into our special revenues and um some of our big grants. We have stronger connections, student investment account, high school success, preschool promise, early literacy, and then now the Oregon Seismic Grant. The Stronger Connections Grant is a 2-year
045competitive grant. We were one of a handful of districts around the state to be selected for this. and the we we have we what we did with all of our grants is we h we aligned them to our strategic plan goals. So, um the board members that are present um recall that we recently uh reviewed the integrated guidance grants with you and the integrated guidance grants is a combination of your student investment account, high school success, and early literacy. Um so what we did and I and I showed you at that boarding meeting is we aligned it to our strategic plan goals. So, we've done that with all of our other grants, too, to make sure that we're also aligning our expenditures to the goals of the district. So, here um we're supporting strategic plan
046goals one and two. All of you were provided a copy, a fourpager of the strategic plan, um tonight, so you can refer back to that and and and review that for alignment um at your leisure. Um, some of the things that that stronger connections grant is supporting is a second school uh safety resource officer and that city just on boarded that officer. Got him got him going here recently. So, we're very excited about that. Um, suicide and bully prevention training, additional counseling through Cous Health and Wellness. We have we have yet been able to um acquire the additional counseling. They have a hard time finding counselors. um security supplies, community engagement opportunities, and character development, collaborative problem solving, training, and restorative practices were all things that we outlined in the grant as goals of the
047district. And so essentially what's happened, um we're going to see some of it this year, but there'll be more opportunities next year. Um so because we didn't have the school resource officer earlier in the year, that was the the benefit of that is that we had those extra funds to spend. And um same with not being able to find the counseling services as we had additional funds. So we've been able to really ramp up our community engagement efforts. So May 17th, you'll see the first event on Saturday, which is coming up next weekend. Um where we've we've partnered with Wayfinder, who's also a character development program and who also integrates collaborative problem solving and restorative practices into their programs um into a Saturday fun family event next week. and we'll have three more of those
048next next year as well, which we're excited to offer. So, that's really what the Stronger Connections grant is supporting. Um, security supplies are things like card lock readers. Just continuing to expand that. We we've got them on a lot of our main buildings. We don't have them across all all of our buildings yet. Also fencing um we've been making and and you'll see those investments in student investment account as well. We've just been slowly kind of picking away at the campuses trying to make sure that there's fencing securing all the campuses, you know, all the way around. One of our walkthroughs with the police department a couple years ago had suggested um primary areas to focus on fencing and um eventually getting to the high school to a point where there's really only like two
049access points, you know, throughout the day, two entry and exit points. Um, and so we're we're getting a lot closer to that. In our student investment account, our focus is on um these were the allowable investments um class sizes, well-rounded education, instructional time, and health and safety. So, we've aligned that to all of the strategic plan goals one, two, three, and four. It supports about 19 FTE full-time employees, um, behavior staff, so certified and administrative, additional staff. So, these are things we wouldn't normally be able to fund through just the general fund if it wasn't for the for the SIA uh, grant. Um, social emotional learning staff in all of our buildings. Um, we have most of them are in elementary. There's a pretty good chunk in middle school. Um and then outdoor education at
050the middle school, teacher mentoring stipens. Um we have a robust um teacher mentoring program in place now and instructional literacy specialists. Um early learning opportunities. So things like after school and summer school opportunities are funded as well. And middle school, high school licensed school therapist through boost health and wellness. These are positions we actually do have already. We were hoping to expand through the stronger connections, but these are ones that we do have right now. Um, social emotional learning, professional development, safety and security. Again, additional upgrades to fencing, cameras, guard locks, things like that. Um, a small amount of money for textbook adoption. It's very small, not enough to cover textbooks, but sometimes as after you do an adoption, you need to get some supplementary materials or things that align to it. So, this provides
051us with an additional source of funding for that. Um, or maybe some intervention materials, you know, for like our reading programs, um, learning connectivity, so tech supplies, and then 5% administrative costs. All of the grants come with high level of reporting requirements. Um, and so you're always allowed to um assign some administrative costs to the grants as well to to help you meet those requirements. and those those grants help support our business team support strategic planning goals 2, three, and four through the high school success grant. Another grant that's been lumped in with integrated guidance, but high school success is primarily focused on um graduation efforts. So here we have our graduation and attendance coaches at the high school secondary level funded Aspire um coordinator, career coordinator. Um Cte teachers are funded through there. Community
052college expanded options and professional development preschool promise grant supporting goals one, two, and three. So, we this year um added two preschool classrooms. So, again, as you're going through the budget, um you'll see that some things increased and they're and they're different even than where they were when they were adopted because we did some supplement some adjustments throughout the year because we received some additional grant funding. So, the preschool promise was one of them. So, we added two preschool classrooms, preschool coordinator, teachers, educational assistants, material supplies, and transportation. Um, so if you're out there by North Bay and you go into that kind of side parking lot area, you can see what's going on over there. That's where the Biddy Bulldogs program is. And um, it's coming along quite nicely. You'll see some playground equipment
053going in there soon and some storage. They got some matting going in. There's fencing around it. Um, really great program going on out there. It's led primarily through um, Dana Cahill. And so um really really coming along nicely. Uh supports uh early literacy supports the early literacy grant supports our strategic planning goals one two and three and that is also supporting early literacy specialists professional development and supplies and materials and we've added the Oregon Seisment Grant and that is in fund 403 capital projects. Again, that that stands out significantly as as its own thing here. And we were just awarded that on 52. I said 51 earlier is 52. Sorry. So, our rules here um really are to um look at the proposed budget. The budget committee um reviews and you can ask questions. We
054can make suggestions. um alter as needed at the fund and function level and um really then approve the appropriations at the fund and function level. And the funds are the general fund, the special revenue fund, debt service fund, and capital projects. And with each one of those at the function level, you'll see instruction, support services, enterprise, capital debt, contingency, and the amounts reserved. And in I will here pull you to your budget book on page 125. You can see that in the resolution format. So again 125 you see um underneath the resolution there um the titles of the different funds general fund special revenue debt service and capital projects and within those your functions uh 1000's construction 200 support services 300's enterprise community services uh 5000s are our debt services and transfers um and then
055contingency facilities acquisition would be 4,000s and then interfund transfers There's uh 5,000 200s and then contingencies and 6,000s and 7,000s reserved. We do have an email specifically for questions from um the budget committee or the community. Of course, the budget committee can also communicate them directly with us and we'll do what we can to have those questions answered. Questions must be submitted by May 14th in order to be answered in time for the next budget committee meeting. So, I'm going to go ahead and jump over to um Are we doing okay here or do we need a break? Everybody okay? It's fascinating. It is fascinating. In your proposed budget book, um kind of just to highlight the organization of that, um you have your table of contents here, um right up front and you'll kind
056of get into some narrative sections at first. um budget development process, budget committee members, the calendar um and then different narratives from different departments. Sort of just updating you on some different um things happening in the different areas of the schools, student enrollment numbers and trends, some budget assumptions, and then we get into the financial sections. as we're going into the documents. I'm going to jump ahead to the financial section. I'm sure you do have some questions in the narratives. Um, if we have time tonight, we'll be happy to attempt to answer those. But in the page 41, you get really get to the summary of all funds. And again, don't don't even bother looking at the bound copy. Then please use the new new copy we have here tonight um provided to you. So
057um everything just presented again um aligns here with the total um of all revenue sources at 68,632,56. And then you'll see that our expenditures um whether they're classified by function or object also balance out. And that does include the seismic grant that was added. On the next page, page 42. We have our adopted budgets from 22 through our proposed budget of 2526. So you can kind of see a comparison there of what's been going on. And then your final line is showing you the percentage change, which is often um interesting to look at. So at the bottom of that page 42, you can see like the 100% increase on line 403, which is because we added the seismic grant, which did not exist in any of the other adopted budgets. page 43 on the bottom
058on page 43 for 2425 in green you'll see that if you go back to the amount from last year this changed here because we also added like I said the preschool promise grant that that came in two chunks and then SIA had also given us an additional amount amount of money which we then brought to the board in order to um receive appropriation authority to spend that. So we were able to increase our budget. So that's why this number might be um different if you would try to go back to the book you had last year. Page 44 is showing you um an FTE breakdown, the full-time equivalent of staff breakdown by uh the funds. And so, um if you were looking at um it while federal federal and state programs, you see 29.36. Um,
059one question that's been coming up a lot recently is if federal funding's cut, how does that affect you? And you, it's in it would be your 200 and your 250s. So really, you're looking at 29.36 and the 13.56 for our staff here in district. Um, other sources have put out numbers that might include evergreen or they might include substitutes as well based on the number of W2. We discovered, we've just dug into this, the number of W2s that were interested that were sent out by the district, they took and in one thing that the state released, it went out showing that we had like 710 employees and 9% of that was our federal funding. So that we had about 64 employees that were federal funded, but that was not the case. This is the number
060that's fedally funded. When you get into page uh 46, you piggraph kind of breaking it down for you. 47 is showing you trends based on uh fund object function on 148. 49 you get into the general fund function history. So here's where you can see on starting on page 49 um previous year actuals and what that means is it's already been audited. So it is an actual number that we know we actually spent the money and auditors agree with that and it's been submitted to the state as actuals. And then 2425 we're operating right now off of an adopted budget. And then you're seeing what we are proposing for next school year. So when you see the percentages uh the increase or decrease here it's not a percentage of dollar amount but that that percentage
061increase is based on what was adopted and then what we're proposing it it might not be b the change might be because of actuals that have changed throughout the year in spending not really on what not not on the adopted part or on projected increases or decreases. Um there's various reasons for that, but um we can explain all that when you have those questions. Um so if we get into like middle school programs, you know, right here off of instruction, um 1121 middle school programs, you'll see that that went down by 241,000. But that doesn't mean that they lost the services by that much. It we had shifted funding to grants. So this is the result of moving money from general fund to special revenues or vice versa is how we can answer a lot
062of these questions. again charter uh that would be the same case for the high school programs actually increasing by 340,000 um charter school that decrease would be due to enrollment English as a second language you see an increase of 46,000 um that there was a person that was funded out of a grant um house bill 34.99 was a grant to focus on English language learners and there was a position funded there and that grant funding is ending. So now we're have we don't want to lose that service of that person for the those students. So we're moving that that cost back into the general fund. So that's why you're seeing an increase of 46,000 there. Even though it's a small group of students, it was previously grant funded. So, this is where I'll really, you
063know, like I said, I encourage you to kind of go through and pick through it, identify places where you have questions, so that way we can make sure that we answer those questions. A lot of a lot of the increases are really payroll increases based on what we had budgeted where we are now what we're thinking they're going to go up to with the 5% as well. Um, principal services went up. For example, down here in the bottom, we added principal to Hill press. This is shifted some of that funding around through different grants. They want to make sure the money's in the general fund. So um the next page five uh 50 you see payroll services went up um by uh that's line 2524 by 140,000. Those are those are increases due to unemployment
064cost increases that are anticipated um since we now have to cover unemployment for classified employees. um last year, last summer was really the first year that they could have claimed unemployment over the summer. So, we kind of ballparked to where we thought they'd be and now that more people know about it, more can apply. So, we want to make sure more money set aside to cover those costs um that are increasing. It also is covering your paid family medical leave, um, insurance and fees in there, and then just increases and and those payroll related costs. Um, down a little bit further, a new expense here, um, 3360. So, in support services, 3360 has neglected student, $50,000. Um, we had a homeless liaison, a McKenna Vento person, um, that we've contracted with Kuz Bay for and
065we were contracting with them. Um, that's Melinda Torres who runs the ARC project over in Kuz Bay and it's a it's a a fantastic program. She's a amazing resource for this the the families navigating homelessness and we had been covering that through um money from the American Rescue Plan that was specifically for McKenna Vento homeless students and so we also had an open position at the time. So when our previous homeless liaison left, we had a little bit of money in the general fund and then we had this grant and then basically we moved it all into grants. So that's why you don't see any actuals along that line. But now moving into next year, we don't have those grant funds anymore. So we u just made some moves to move some money aside so
066that we could continue that partnership with Kuz Bay and continue to provide the services to our families and our students that are really in in need. So that's why you see that there. And again, um, we I was just, I believe, on the phone maybe yesterday with Kuz Bay trying to work this out. So, but we had to build the budget on a number. It'll probably be a little bit less is what we'll actually spend, but we wanted to make sure we had it covered there. So, that's why something like that there appeared. Uh, going down to the next pages, 52 53. Then you you're switching over to the object level. So again, kind of driving down a little bit deeper and things on the object level that increased um our PERS contributions are increasing
067um because of payroll increases. Um and so really those get lumped together when you're looking at those 211, 212, 13, 16, you want to just kind of lump those together as a whole. Same thing happens in medical. So like in the 240s. So going 240 241 all the way through 249 on the next page. A lot of ballpark. There's a lot of of of guessing going on looking forward because you don't know what all the different plans employees will pick um when when you're putting this together. So we try to stay as close together as we can, but sometimes things do shift. Um like on page 53 241 you'll see medical insurance has a decrease at 252,000 but then on page 54 um you can jump straight to the 246 and 247 where we have
068increases of 79 and 149. So these things kind of the overall offset but in the end um in that whole 200 category you're you are seeing an increase of $758,000. So again, we can get into more specific questions let me know the next time. And I don't want to just guess here on every single line item. You might have a question. So I'll just kind of leave those pages at that. Um page starting on page 59, you get into the general fund um requirements and you'll you'll again you're breaking this down on another level. Um, and as you continue to move forward, you can really see kind of where where the the different um money in each function is going. And it's possible that you've had a chance to look through this and may already
069have some questions lined up, but I want to just make sure we continue to go through this. When we get down to page We can um yeah, I mean I was when we just go through the document, you'll see a bunch of supporting information in the back. It'll talk about our um some examples of the what was posted in the newspaper proposed uh budget motion to approve. You'll see the printouts from the state school fund that show um the breakdown of the 4951 split and how the money in the state school fund distribution formula works and the resolution. You'll see our district uh coaches, our vehicle fleet and the chart of accounts. So yes, ready. So school looks like for this coming year it's 10.7 million. That's that's the entire budget right here. Yeah. Yeah.
070Um what page are you on? 360. Mhm. Yep. That's that if they were if they are at 950 students, that is the amount of money that they would get. And we're making like 66,000 per 100 kids. Yeah. Do the numbers. That's about 627,000 is what we make, right? By administering. Okay. Yeah. Is that And then we're we're providing services also. Is that right? Or is that what we're actually kind of administrative oversight? I would call it um they have their own team of administrators, they have their own school board. Um we want to um we any grants that we receive that flow through us. It's a similar type of thing. Um they would work with our administrators to make sure that they're in compliance with the rules of the of those grants. Um they work
071with our finance team because most of our grants are um reimburseable. They're they're reimbursement grants. So we spend the money up front and we have to show them proof the state proof and then we can draw down the money. So um Evergreen we have they operate the same way. We expect that you know they'll pay the money they have to show us the proof that they that they spent it according to the correct purposes and then we'll um submit for the reimbursement and then they can have it. So we're not paying them out before we know um if they spent it if if they spend it correctly. Um, and then things like special education. Um, you know, we're responsible for ensuring that they're all following all federal laws. So, our special education director works closely
072with their special education director um and and they have touch points and and in our agreement they've they've agreed to bring some of the more complex cases to us just so we can, you know, just so we can be there and provide some guidance. Technology works with them quite a bit. um their students are housed in our student information system again for state reporting purposes and for um receiving funds from the state school fund. Um that requires a lot of co coordination between tech tech evergreen and then um anything contract related um HR related staffing related you know that could be Vince or I talking it is it is it is a revenue. Yes it is. Um the biggest challenge that we were having was the fact that and and they didn't know it was
073going to happen either, but we kind I mean we kind of knew but it wasn't for certain, but it was the fact that after COVID that they declined so fast because we were building budgets based on what they were telling us they were going to have and then they didn't have it. So then that was affecting our operating our operations operating expenses as well. So, as they're leveling out, it's getting a little bit easier to plan for that. We also um last fiscal year especially battled with them a little bit because they set their estimates on a number and then their actual enrollment was quite low and they wanted us pay them on their estimate, not on their actual And um Tim and I really talked about that and we actually did we paid them
074on what their actual enrollment was because we wanted to protect ourselves and the way that OB resolves their resolution processes at the end of the fiscal year. um they um drew up all those accounts the following day and so that reconciliation if we would have kept paying them and then OD said oh we overpaid then we would be asking them to pay us back so that we could pay back OB and they wouldn't necessarily have it to pay based on us there at least a scenario existed in our mind where they wouldn't solvent enough to be able to pay back in essence a couple million dollars on the spot we're going to turn on to OB and then if if they couldn't OB was going to take it from us anyway and so we would
075have been a real a real bish so I just want you to hear that as well is that we monitor their enrollment that we're also very careful how we make payouts to them so that they can protect the district We almost held like an escro journal. We do. And in our agreement, we we would we keep one payment um throughout the year. So when the state school fund starts over the summer, we get a double payment from the state to start the year off, but they only get one. Then we hold that throughout the year and then they get that in the reconciliation at the end of the year. So that way we can avoid trying to get into that process. But previously we've been holding two for the previous agreement. So based on some
076of the um enrollment declining enrollment situations going on and we were at the end of um House Bill 743 which had to do with the charter school enrollment and how they were paid. We weren't quite sure how that was all going to um sort out at the state school fund level. So yeah um having the ability which our agreement allows to pay them on their actuals helps protect us when we need to. It's nice to be able to pay them on their estimate, but if we notice a steep drop in enrollment, we can then shift to actuals so that we don't get ourselves in trouble. Thank you for being wise of that. You got to curiosity. Um, two questions. one not completely meaningful, but do we track far decline to see who goes to evergreen
077and what percentage of them go to evergreen and that way at least we're getting something rather than a total loss. I see you shaking your head. Yes, we we track we track our we we've been making a um focused effort on tracking students leaving the district. Um several years ago there was a perception that most of our kids were leaving the district and going to Winter Lakes for example. And so we didn't have any anything to support that. It was a it was something that um was talked about. So, we really started to track that to see if that was true. Um, and there's not a greater percentage of kids going there than anywhere else. Kids are leaving the district are moving. Some kids are going to Evergreen. Um, a lot of kids are homeschooled.
078Um, and so, um, we do track that. Yeah. Secondly, more important and something that you just brought up, holding the funds for Evergreen. Is that something that the district floats? I know my work a lot of companies to quote that and try obviously invest it whether bonds bonds and try to make that 35%. Is that something the school district does or has thought about? Yes. Um and that's a great question. Um as a school district we're part of a a local government investment pool LGIP account. So our state school fund dollars we keep them in this LGIP account. So we can receive interest on those on those dollars. So that extra money that we're holding for Evergreen is in that that account. We should also probably say that correct me when we were looking at
079that other issue we had with our service credits. you took a look at how many of our students were currently enrolled in Evergreen and I believe was in 60 something which means that their student enrollment is somewhere in the 900 range. Um that would mean they're about 840 of the students they have enrolled are outside of our district. So all the funds that are coming from that are coming from other parts of the state. Um it it's so unlikely have the impression that only or Ben students are going to ever bring students a charter school that's only bound by the line of the state and they can't pull from other states but they can pull from anywhere in Oregon and so you know almost you know certainly eight nights 88% of what they have is
080coming from somewhere else in the state at least. maybe 90%. So it's not but we see that as kind of problem. We are really, you know, we're coming out ahead and it's and that's why still works for us even though we have some questions. there was a League of Women Voters for up here and I'm going to say two of the maybe 10 questions were around the potential loss of federal funding for our title our title programs. I don't want to go down trail rabbit hole but just at a high level in a minute or two we have any insight on that and what might we do in that I know that the president has submitted what he's entitled skinny budget. I just read an article from the OSDA which by the way for those
081of you who don't know the acronym that's the coalition of administrators that's the organization and it says that the the budget as presented includes funding for title so we expecting that title one funding would pretty much stay static Um there's certainly not a conversation about cutting off those funds. U we are also seeing funds for IDA that's the individual with disabilities education act not necessarily building those as much as maintaining them. So those are two significant areas that we're based on the fact that the administration has put that in budget we don't foresee that they'll be pulling the plug on there what's happening state of Oregon and specifically with this body. So that's kind of a high level and anything you want to kind of add to that. Did that answer your question? I think
082I'm good with that. I don't know what percentage 501 would be that but is it the majority perhaps or a big percentage and showed to That's federal government cuts off funding for something like that. We have individuals most educational assistants who are working in small groups. So because that potentially have driven off those people and have those students just stay in their classrooms. It would be devastating services who are having a hard time. standpoint, you'll see those dollars appear 200 and so whatever is funded in that area, you know, we would take it the right way essentially try to have it I don't know it's called set aside but he believes that we've understood enough of it so that we would have about a year's worth of ability to operate the program. And so he's
083built a buffer that we could probably would benefit this quite a bit unless the federal government just literally turned off the staff. You know, they just blocked the fun, we would be sucked. But as long as we can still submit our our we can bill our the state and the state then goes and requests the funds from the federal government as long as that window is still open then it will still function for a period of time but but I feel pretty confident based on the president's budget the title one and I will continue IDA and title one or you'll find those on page 74. Um, IDEIDA has to do with students with disabilities. So, that's a big part of our special education funding. That would be a significant loss to those programs if we
084didn't receive that title one. Um, on page 74, it it was R4501, and that's kind of just been the pattern it's been in for many years, but it really should be 453. That's just title one. And this is following what's called the PBAM. It's a Oregon's um school budgeting manual that outlines all the codes for these. And so what what you're seeing us is us recognizing that and shifting it to the appropriate line 453 which is why there wasn't a previous line there. So after a few years that'll drop off 451. But for 22 23 23 24 you can see about what we spent in title one. Um we adopt a budget that includes what Vince was just explaining which is our our carryover. So if we don't spend the whole grant, title one is
085one that they are allowing us, you know, to roll that into the next school year. Then you have until a certain point of the year to spend that. So all your all your upstart costs and your fees like through all your employee payroll through like September, you could use that carryover for so you're always having this extra carryover. We were we were able to do that with the integrated guidance grants too. Um but they hit are now functioning on a bienium. So when you hit the end of the bienium, you actually have to spend down completely by June 30th, which is a little bit of a unfortunate thing. It was really nice to be able to have that carry over year to year. Thank you. And then there's there's food service too also. There's also
086title three, which is your um English language learner program. And then there's some title four funds, which is a small amount of money. Title one is the biggest part. How much money do we get for the corporate activity tax that is beneficial to us versus what it used to be before we got the corporate activity back? What was the increase in benefit that we received in districts or state or anywhere specifically us? Did we notice anything at all? Yes. uh the student investment account grant so in those special revenues um that those pages on student still have that yeah and it never goes away it will it's not going away okay and that created and how much money is in this specifically in that from that corporate is that a dumb question no it's not
087at all um that so on the last board meeting when we got dug into the integrated guidance And I had that big spreadsheet, right, that I'm sorry, Anna had put together for us. Um, that one had the exact dollar amounts for student investment account. And so, um, we can get that to you again if you like. Yeah. Oh, we look at this. Here it is. I don't think I don't think it's specifically the SIA, right? SIA is funded through the corporate activity tax. So, we're receiving 2.6 million next year from that. Yes. prior prior to the passage of student success act which authorized them to create student investment account. Those monies just simply did not come in they're mixed in budget that we got from the state go down in lie of that. No, no,
088that was additional funding above our state school support, our regular state school support. Yeah, that's a great question. And then did them um as far back as you can recall the ADM, has that gone up per student or is it just maintain the amount of money per student? Um there is a 605. Yeah. Here we talked about it in the dollar change per student. So here it was $65 increase from last year. The year before was an increase of like 80060. Um what we did actually and we went over this with our union negotiation. We showed them a a a graph that shows it doesn't it fluctuates. Um I mean some years there's no change percentage-wise, you know. So it does it's just inconsistent, right? But for those typically around see this formula in action
089like even from what I was teaching there was a point where we got $5,500, right? And now it's $10,600. That's why I was trying to figure out like how you So over the course of time that has been adjusted upwards and it doesn't match inflation by any But it's not sustainable, but it does change helping pay the teachers with that. No. No. And that's definitely something we talk about. The state doesn't fund us on inflation at all. Not even close. And there's also um some reports put together on the quality education model. So if you look up the QEM, it has a funding level that that they're saying schools should be funded at. And we're not we're not close to that. pay their their employment. And there's we have a very labor friendly governor and
090legislator. One of the bills that's out there this year that we're happy won't impact us because we just signed an agreement. They're talking about being able striking workers being able to get unemployment. Yeah. Okay. Right. So, it's something that cobba are lobbying against. But again, we have a very labor friendly legislature. So, some of those those kind of things roll forward. something to say you got to do but they don't give us any extra money to to back up. Can you pay Joe's to contract employees? Uh no because and I say that because that situation is connected to the fact that that um under bullying and the Bureau of Labor and Industry law those employees aren't exempt. So, so the striking piece, well, striking workers, you know, actually it would be it would be any
091striking in any industry. Uh, but like for example, the situation with the returning, you know, being able to to take unemployment insurance during the summer for a classified employee, it's only for classified. It's not for certified. So, uh, it just depends on is it bullying them for giving them something else that they can do so that they're so that it'll deter them from filing for unemployment. School districts all over the state that all those kind of conversation and and there there are times in which that answer is yes and there are times in which that answer is no. I mean the absurdity of some of the things anybody who's who's who knows about has actually utilized unemployment insurance knows that you have to try to get a job and if you are offered a job
092you know take it and if you don't employ well um part of the nuances of this law is we could actually offer them six weeks of of like an educational assistant. You can say, "Hey, we have a summer program, right? Um, you get six weeks, you're in and you can say, uh, I don't want to." That's true. And take unemployment and still get that disqualify. So, there's there's some there's some technical nuances to this that are absurd inconsistencies and double standards. Yeah, it is what it is. Good job, guys. Congratulations. Would you get a start? I can't tell you how many hours of conversation I've heard from superintendents all across the state in meetings that I'm a part of in which they talked about different ways of working with and around. I'm so sorry and
093how to manage that that all by itself. Try to get people to not pass bills that are unfunded. That's that is probably the poster child for unfunded. You're making us pay all that money. It's not geared to students. It doesn't impact instruction in the lease and yet you're not giving us money to that bill. So, I've got a question about staffing. At one point it said said maintain staffing levels and then later on you said if we maintain current staffing levels so decide when does that decision get made and well we have to look at our current attrition rates and I what what is happening with our staff um and and what is our enrollment at each of those levels um and if we don't make adjustments will it be sustainable Um, so, um, this
094is the time of year where, you know, we need we we we have to build a budget and so we want to build it with our current staffing levels and with all those rollup costs because if we need to maintain all that staff because of enrollment, we want to make sure we can. Um but if enrollment stays at the current level, what we're going to see is the use of that um sort of reserve funds and seeing it decline over $3 million in one year means that it is not sustainable. So, um, as we sort of hone in on adopting this budget, then the next decision becomes let's look at our current attrition and see if that's matching our declining enrollment and then then then do some projections um using our forecast 5 software to
095see if we can um offset um that decline by the attrition and see if that will bring that reserve back up. And if it doesn't, then we're going to make some some adjustments. Yeah. When do you find out about the retirements and nutrition day? We we're at this time of year they start rolling in. So we found out about quite a few. Um and so um some of them that again the budget's built with those positions in, but we know we don't need that many positions. So you'll see a lot of these changes um right now are already unfolding at the elementary level where we have teachers retiring or leaving um you know to to move to other areas or maybe their coast guard families. So then then we have to look at the enrollment
096you know what with that x number of people leaving what happens to the ratio of students to teachers and is that a realistic ratio to still provide a high quality instruction and then and then make the decision to hire. So just can I just ask a followup question? So in the budget book it says that there were no planned reductions in FTVs, right? And I see an graph where you've got um essentially no reductions. You have some reductions in elementary some additions across uh senior high and things like that. You're sort of moving from one to other. Um but the way that you set your budget is you basically set an assumption which is the highest level. Um what I hear you saying is is that as the year goes on uh you expect that
097you will be making adjustments and you will have FTE reductions. Is that what Well, there's I mean in in the reduction versus like reduction as in like a reduction in force versus just natural attrition and not replacing kind of I don't care about how you get my question you're at 200 FPS or 279 280 in your budget but it could be when the school year starts 250. Yeah, probably 250 but I think something lower than 280 representing a budget that we fully expect to understand. So if we're talking about a general fund of $47 million, we're hoping to spend that by a few million dollars. We we came into the current school year hoping to underpend this year by a couple of million and we spend it by over three. Um and I think that's
098just one of those situations where um it as as we as we understand more about our projected numbers concerning it's it's Oregon Oregon's kind of nutty in the way they like school districts to build their budget. We're making projections on enrollment in December and so that we can put this document together by May and then we really figure out what's going on uh you know sometime in the spring and even in summer as we start adjusting our staffing levels and looking at our how many kids we have and trying to put all those pieces together. So, it's just when you're when you're taking your best guess about in all kinds of different aspects, but well, that's not necessarily a bad thing. I'm trying to remember last year, I believe there was a plan to take
099almost $4 million out of reserves so that it would draw that reserve balance down, I think, to 4 million. You're starting this budget at eight, which tells me you spent, which again, you have to have reserves, which is one of the ways we're going to understand is by by looking at attrition, real attrition. So at at different points in the in the spring or throughout the year, you find out teachers not planning to come back or other staff members. And then we of course evaluate whether or not the replacement of that position is necessary and how we're going to do that. And so we are we know if it's going to be sustainable over the next two years that we're going to have to have less than we have right now. Do you guys have
100a sense for again this is just for memory but I think there are 90 kids that were projected to come into kindergarten. Do you have a sense for how many kids uh that reside within the district are choosing other educational venues? Right. So there's the Lake View Christian School or the Lighthouse School. Kids that are going away because that's just until sixth grade. Right. So they come back well for seven. It's yeah, it really depends on on the program. Uh we certainly see a bigger impact with the younger grades because because we have private school options if we have other options available. And so uh in terms of we don't necessarily go knock on their door and say how many of your kindergarteners are living in North Dad and how many bay um but we
101do know that um that there are private schools that have um that have served kindergarten first second grade kids and up through PK8 for a long time. One of those actually closed this year and so Yeah, our kids went to your kids. Yeah. And so, so those those kind of scenarios happen. We also know that that right now there's a successful private school out in the river that has a good number of students both all the schools locally have all the districts have been impacted by, you know, that to the tune of $10,600 per bid. So as that program continues, if they're successful, then it'll it continue to have an impact. So but we have, like I said, we don't know exactly how many of our kids go. They have a rough guess though. I
102would imagine that's true bulldog programs for try bring people back in to the district. Part of it is the other part of the video bulldog program is so that our kindergarteners have more readiness when they walk in the door. of the first day of kindergart because there's a there is I think it's very safe to say that 10 years ago versus 20 years ago versus 2025 the level of readiness a 5-year-old walk into the building of kindergartener has has diminished greatly and that the gap between the number of students who are ready to go to kindergarten and the number of students who are not ready to go to kindergarten not only is the top section decreasing in percentage but the gap between where these kids are where these kids are is also widen I mean
103I hate to tell stories but my wife's [Music] an all kinds apps on the phone. So there's so part of the mini bulldog to to develop school readiness for for preschoolers and we think it's we hope we're hopeful it's going to have an edge but and to give you attract into the area. Preschool program. The reality is all across the state um the kindergarten numbers are being impacted by lower insurance. We have one school district in our region that is not experiencing that. That's everybody else in our region is experiencing kindergarten. So you get an idea 180 seniors approximately graduated last year. We started the year with 101 kindergarten students and we're down to those big numbers that are big. Um, so and then a couple thoughts as as Vince's been talking to. Um, I'll
104kind of work my way backwards, but then the Bitty Bulldogs isn't open for like open enrollment within our district. Those are seats that are funded um through the preschool promise grant and the ear the South Coast Early Learning Hub identifies those students and fill those seats for us. And they're really serving um the the families really experiencing um situations of high poverty and high needs. um a lot of the students are being served through the local ESD for various learning disabilities and and um so there there students who are they were providing services for preschool for students who wouldn't normally get them in our region. Um so that's when they had asked us to open that second one up because they already had a list of kids they wanted to send to us for that
105too. Um so that helps us in that sense also helps just the whole region in general um for those students. um in terms of the students like when they're coming in from other areas if they're come we don't know if they don't start off in our district like if they're where they're going. So before they're enrolled in public school with us, like if they make a decision to go to one of the other options, we we might not know that. But um if they're with us and they leave to go to one of those other options, that's what we've been tracking. Going back to Rodney's question, um so we do know when they end up going to like maybe a school up the river or or one of the other options. Um how many of
106how many of them are leaving for those types of options? And I believe they just expanded K12. Well, maybe maybe K. High school option is essentially online support. Okay. And then um in terms of the budget too, um we were fortunate um with a a very positive working relationship with our certified union, we were able to go through the negotiations with only three meetings and come to an agreement. Um but when we're building the budget, we don't know that that's going to be the outcome either. So that's another thing too that when we're we're trying to project what we kind of think is going to happen if I mean with no certainty, you know, um but it just so happens we finish those negotiations and we're able to build a budget accordingly. So um but
107but knowing that we're in order to maintain so we can but we're going to eat through 3.8 million in reserves getting us down to that 4.2 two, which would mean the next year after that we would go into the negative completely and we'd have no ending fund balance. So clearly with the reduction in student enrollment, we would have to somehow adjust through attrition in order to prevent that from happening and we and we are seeing those numbers now kind of getting finalized where we're going to start off the year. Yeah. So as the enrollments decline and you guys track it and project it, can you guys do the same things with like programs like sports and choir national honor society and project like how many kids are going to be going using those and like
108are the numbers and roles or participating in sports and things like that declining um in the same way that attendances or a steeper amount? That's a great question. And I mean it's since I would say since co the participation rates have probably increased and then we're offering more things like um there's emerging sports that have been added to the lineup. So there's some more options for kids too. So I was watching the board meetings from last time and they have been honor society who was there and so do they have a is their coach funded for that? Like I was just curious about like you know are they treated like sports? Now they are. That was one of our in our negotiation. Um we talked about the fact that like National Honor Soci so Society
109and OB the Oregon Battle of the Books um though they actually go out and do these competitions. So So they're they're more than just a club. They actually compete. So they were added to the appendix um same same um chart as the coaches are on. Okay. Yeah. Yeah. It seemed good because you know just watching presentation you know seemed like they've done a great job. Yeah they did. And I and I honestly didn't know that there were that many competitions. So yeah very much deserve to be honored like that. And in terms of participation, um, we report that to OSAA every year as part of our athletic director responsible to do that. Um, and I I feel pretty good about where we're at in our participation rates and sports. We see a lot of schools
110around us, a lot of schools across the state that have had sharp decreases in their participation. Um, and we've had decline. We haven't had that that invites people. Our football program, and I say football because there's so many kids, our football program still has enough kids out there that are that like when we go up against our opponents, it's not like we have the stable group on one side and they got this big group on the other. We have good participation in volleyball, our track participation. So, or basketball participation hasn't dropped off as much. A few years ago, they had four teams, maybe two, maybe one. Uh, and then varsity freshman certified. you walk into that room after school and it's filled with people. So, uh, so I I feel really good about where they
111are, especially considering what I see across the state group. So, those things are going pretty well. And then not just like we were talking about not just the sports part of the athletics but we still see some good participation in and co-curricular activities like dance choirs and things like that as well as other kinds and even said sports you know our boys volleyball team and our and flag football for girls were out competing And we got a home home game coming up. Two home games coming up. We go back to that very soon. Tonight when did flag football and men's volleyball get added? They are officially emerging sports from OSA. They did that. We joined this year. I think boys volleyball is a couple years in and I think girls the flag football just happened
112this year. Um and it's something that OSAA does to kind of pilot the test water to see if we can build up enough momentum. Um I I think that flag football is going to explode. Yeah, I think that's going to explode. Our only concern is if it does it impact softball track. because there are only so many kids. But right now, we're allowing kids to play more play football. They're not necessarily practicing every day from 3 to 5:30. So, kids can do both. But I just think I just what limited there OSAA establishes all of those kind of practice rules, but kids who are allowed to participate full it's kind of family and the kids schooling really how how they handle that some participating schools allow it to some level sometimes it's easy like cross
113country I mean they're football players and volleyball players that decide they're going to run cross country and they'll go to a couple meet so they're pass they can potentially make it to state but But it just depends on page 126 will show you our projected um participation. But um as we're talking that I mean we we just wrote down here it'd be nice next year to kind of have like the actual kind of like a budget what are the actual participation rates based on what have no clue. I mean you'd have to go back to the previous budget book right to see what we've projected but it wouldn't show you your actual participation. So that'd be a good thing. And we always that there is, you know, we we put the anticipated number of coaches,
114but build in enough in case we need to add one or two extra. And we try to do that, you know, in a couple different categories like teaching, too, because like I said, the the state isn't like on the spot with your money if your if your student enrollment increases, but you might need to provide a teacher unexpected, too. But if I'm wrong, um, speaking of the emerging sports, because they're emerging, I believe that the coaches are not paid the volunteer positions. Is that accurate? They are next year in the agreement. Just like we added the National Honor Society and OB um we added a column for emerging sports so that we could um ensure that we could find coaches when these opportunities arise for kids. Yeah. Yeah. So what will happen is while they're
115officially an emerging sport, they'll be on a salary schedule for those coaches that are specific to that. And as soon as those sports move out into the non-emerging category, um then they will And it's part of a bargaining agreement. They'll move into a category that best fits the amount of time that's invested and the number of I say time sense of you know like volleyball is a 10 week sport basketball is a 20 week sport feels like feel like it's forever right. So, but those are the kinds of those are the kind of differences consideration that plug it into the right call and those are negotiated with the bargain. I do have a question on another subject and it's regarding benefits and um it's insurance a how you guys kept it relatively flat for as
116long as you have is amazing given the huge jumps in health insurance but the other one is the purpose and I know I'm thinking 10 20 years down the road the tier one people that will no longer be shi the tier twos that are not far behind. um are tier three for people are we adding anything into their retirement or is it just the standard tier 3s where it's basically organ saves just out of my tier John there there is the tier there is the tier three component and there's they're broken down in the budget book as far as what we're paying um into those plans um on page 53 three. Um, as far as extra goes, um, that would be up to the employee to add to like a 403b, for example. Um, and
117then, um, there is a negotiated amount, a match in the in the agreement for, um, certified um, not classified as not negotiated for that. And, um, thank you. So, they do have that option as well. I didn't skip over that. Yeah, I apologize. That's okay. Um, yeah. And then our of course our contribution rates to employees insurance plans are also negotiated in our agreements. So um moving into next school year we didn't add to that um dollar increase dollar amount. It stayed the same. I'm will just throw out a few um I track CP programs from Northern California all the way to Washington and um North and all Marshall in there just our area does well with CT. Oh yeah. Awesome. I'd love to raise the budget on that but that's a professional s Yeah.
118Yeah. Yeah. Our CT program very important. Give me a dollar. I said, "Go lobby Salem. Good luck. I'll give you a dollar." Just there. That's what I was doing. Were you really? Thank you. Did it work? Well, it wasn't program. I would encourage you to look over this and type up your questions in an email or or send them to us or give us what give one of us, the three uh four of us a call. Um we'll write them down and um have them answered for you at the next meeting. Y Bulldogs that's completely funded by different preschool promise. So those students there is no money coming from the state. Correct. Well they we get the grant money from the state but they don't get the state school fund money. That's a that's a
119great um thing to point out. act. So they so you don't see them in the enrollment number as far as state school fund revenue goes. You only see the revenue in the grant fund based on the grant that we received from preschool promise. Someday it would be different as yeah if preschool promise wasn't in existence um we wouldn't have any revenue source for it. So then we would have to um think about how we would fund that if we were to continue that. Yeah. Yeah. As and as these programs grow and bigger like other districts that run preschool promises as they get and get successful and get moving, they're able to add slots and it'll charge for them so that more community members can participate in it. But we're not we're not to that stage
120yet. Well, I think that We've done enough tonight. So we're ready to take recess and we will attend a week from today. So just we uh I'd like to thank the budget for everything you hear. I went to New York. I'm not a trusty person. That's okay. But over the years, I got to say trusting you guys. I appreciate that. So, our homework assignment gener uh 14th would be the deadline in order to make sure we can answer them on time. Of course, we'll still try. And you'd like those questions sent to me. Um there is an email listed um you can send them directly to um any one of us and they'll they'll be on the docket. Perfect. Yeah. And and yes, thank you Jim. Um Laorray Sullivan and Anna Bergmire. I appreciate everything
121you do all year long and putting this together. It's on the last