001Ready. Well, first of all, where is the the meeting? First item is this, the election of office officer. My name is Chair. I have a question. Uh is anyone that want to be respectful review that Anyone of you interested in serving as the Oh, there was a motion. You just have to second it. Second. We have a motion and a second. All in favor of Any opposed? Motion carries. You get to pick vice chair. So, you have um at your place, the budget message for this, uh, for next year's budget? I'll give you a minute to read through it, and then I will point out some key points, uh, in the note. You don't need to sign in the way. Just sit over here. Thank you. Sorry, we didn't have a forum. I know we're
002just reading through the budget message there. They you one more time, or you want me to hit the timer? Okay. On the first page there aren't a lot of changes. This is sort of the boilerplate language of the budget message, but I did want to point out under number two. It So it says the district will develop a budget that then under number two the second to last bullet is new. It says supporting a regular curriculum replacement schedule. That's going to be important moving forward. For multiple years prior to this budget, we had made our biggest curriculum purchases from SR money. So language arts, math, and science. And in some years previous to that our curriculum fund had been a little bit depleted. And so now we are very focused on building that back up.
003We will be adopting English language arts in two to three years, somewhere in that time frame followed by math, followed by science. And so um ensuring that that fund is robust enough to purchase updated curriculum for kids is is a key focus for us now. So that is a new bullet point there. And then just a reminder that the budget will contain a 10% contingency fund. It is a firm by the board. Then on the second page, just to go over some of the numbers a little bit. Um we're in the entering the second year of the biennium on an 11.4 billion state school fund. We will be in the 51% split this next year. So the first year is a 49% split. The second year is 51%. The budget is based on a regular
004enrollment ADMR of 475 students and an estimated weighted enrollment or ADM of 634 students. And a little bit uh down below we explain that those are this year's actuals. We are in a period of declining enrollment and so the state will build your state school fund um budget on the higher of 2 years and we are anticipating this year's actuals to be higher than next year's actuals, so we are basing the budget on this year's numbers. We still maintain a designated fund to support PERS increases and I think if you're reading the news, you can see that that is impacting a lot of districts. It has not impacted ours yet, but we do have that fund um in case we need it. And um our integrated guidance application funds, which include early literacy, high school
005success, and student investment account dollars will be a total of about 903,495 dollars and you will see those funds in the budget. So some things that impact the budget, we are still in declining enrollment, so it reflects a decrease in student enrollment for next year. It's based on this year's actual numbers. The federal government and therefore the state of Oregon redid the poverty calculation, which has negatively impacted Oregon and pretty much every school district in Oregon. And so uh poverty is one of the weights in that weighted um enrollment number. And if you compare last fall's weighted enrollment to what they're projecting for next year, even though it's the same number of kids, we actually go down about 11 students in weighted ADM because of the recalculation of the poverty calculation. And that is a
006reduction of about $134,000 to the district from what we might have expected to have next year if we were looking at our numbers in November. And that is across the state, but this budget does take that into account. We are still reflecting a slight reduction in overall staffing through attrition. Again, when you have declining enrollment, we need to right-size our staff. Um, that is starting to slow down and our enrollment uh after this next year will start to stabilize more, and so we we do have a little bit more work to do in reducing our staffing, uh but not as dramatically as we've had to do in the last few years. In this budget, you will see a small decrease in overall FTE in the budget. We focused on trimming back areas that don't impact
007kids and leaving intact areas that do impact kids. So, number five mentions we trim back things like travel in order to be preserving the programs and materials and staffing that impact kids. We did increase insurance costs by about 15 uh percent, and then we are anticipating a correction next May in our state school fund allocation because we collected about $200,000 more in local taxes this year than anticipated. And that state school fund is uh they take your weighted enrollment, they multiply it by a dollar figure per child, and then they take out your local taxes, and what's left is what you get from the state. So, we have 2,000 $200,000 in revenue that we probably don't get to keep. And so, we underestimated our ending fund balance enough in this budget to account for what
008we think we're going to have to give back to the state next May. So, that is reflected in the budget. There's not a line item for that, but we we have we know that that some of that revenue we have this year isn't real. So, we have accounted for that. And then, in general, just our budget is aligned to our strategic plan. It ensures that we can invest in high-quality staff, maintaining our facilities, our curriculum, and our technology to be sure that we're doing a good job of educating students. Any questions or comments about the budget message? I We We messed a little bit about these things. We messed a little bit, yes. Yeah, um the development, we knew that it would we were going to get more revenue, but we weren't we're not sure
009until it comes. So, last year it was 200,000, this year it's about 200,000, so now we're it's on our radar. So, we we Shannon, Laura, and I spent spring break and Christmas really looking at those numbers. Our Our local tax revenue had been, correct me if I'm wrong on the numbers, about 1.6 million pretty consistently. And then, all of a sudden, we're taking in about 1.88 million. Projected, but we've taken in enough that that's our projection. And so, when you look at that state school fund formula, you think, if we projected 1.6 million and we took in 1.8, at some point they're going to come knocking for that money back. Yeah. It's not just a gift. But it happens the following year, so they have to close out all the books for this year and
010all the audits, and then they will come back next May and say, "By the way, um or they will start reducing our state school fund amount next year to account for that." They'll work with us to tell us how they're going to do it, but for that reason, we can't look at that increase in revenue as true revenue. It's not. It we underestimated our ending fund balance when you put it back in as revenue by about $200,000, knowing that $200,000 of our current ending fund balance is not real. Does that make you feel Right. Yeah, we're just saying our fund ending fund balance this year is a little inflated because we got too much in local taxes that we're eventually going to have to get back. We think. If we get a a huge increase
011in enrollment or something, it it could set that, but that's not the most likely scenario. I initially started at 10% thinking I was doing great and then I got a phone call saying No, more like 15. That was fun. Yeah, I don't know what you can see. We can be too loud. And did you want to go through this stuff before? So, Paul and I will go over this in our in your packet. You have current enrollment numbers. That's This is the second year in a row we've had a dip in late spring where we've just had families move and after spring break. Um However, we ended the year last year at 474 and so if we end this year even around that, we are still in a good position moving forward compared to what
012we thought we would be doing this time this year. And then you have here the state school fund formula. So, you can see where they subtract the local revenue from the total formula revenue that's in the kind of that fourth narrow box down. We've projected it now to be 1.8 million, but that's where we think the state will come back because of this year's number. And then you can see the ADM calculation there. The poverty calculation here doesn't look that dramatically different because they've already adjusted it this year, but if you look at our November ADM breakout, that 44.82 was Oh, sorry. The next page you can see it was 89.45. So, that 22.36 dropped to 11.21. So, that's where we see that decrease in funding. And then we have our current budget projection. And
013you can see that local revenue projected total of 1. 85 million. That we're a little concerned about and that we had budgeted on 1.6. Then you have the revenue report um, information. Expenditure report summary. And then budget um, and actuals for the last 3 years. And then finally our things pie chart showing you the percentage of the budget that is in each category and clearly most of our budget is in salary and benefits, which is typical. I would say anything around 80% in salary and benefits is typical. We're a little under that, but we do have staff paid out of special funds. So, this doesn't represent all of our staff, just the staff that's paid out of fund 100. Comments in here? We break. And then the budget document is the red document. That's the
014same as in previous years. It's broken up by the tabs. First tab, all the red pages are the revenue. So, the first one is just fund 100. So, we have a budget of $10,175,000. And then all of the white pages behind that are the district expenditures. Then the next tab is elementary, and then the middle school, and then the high school. And then under the other tabs are all the special funds. With the red page being in the revenue, and the white pages behind it being expenditures. And each of the special funds, those funds balance within themselves. So, if it's 20,000 revenue, we have 20,000 expenditures. So. So, our total We have 174 pages. The total budget for you this year is $25,035,000. So, in here I put the bond. It's easier to put it
015in, and then we will know when we do the budget hearing if it passes or not, and then I can either leave it in, or we can take it out. Anybody have any questions? After this meeting on Monday works for everybody. Sure. 1:45 work? Monday 5:45 I hope it should be in the library. We don't have to look there. We'll be done, right? Yeah, we'll be in the library. We have book fair. We have all open daycares going on here. We have a lot of a lot of stuff. Thank you, everyone. Thank you. Appreciate the support. Yes, thank you, Elena. Thank you. >> Mhm.