001I call I call this meeting of the conro Independent School District Board of Trustees to order let the record show that a quum of members is present that this meeting has been duly called and that notice of this meeting has been posted in accordance with the Texas open meetings act Texas government code chapter 551 the time is 602 leading Us in the invocation tonight will be uh trusty dunan and our Pledge of Allegiance uh will be truste may please stand with me in prayer dear heavenly father we come to you tonight thankful for your provision Lord thankful for all that you're doing in this District Lord to cover our students Lord our administrators our teachers Lord and all of our staff we ask your continued blessings on this board Lord as you guide us Lord
002guard our decisions Lord allow us to gain knowledge and wisdom Lord as we move forward with the things of this District that will benefit our stud students and our teachers Lord just allow us to remain focused on the classroom Lord we just ask that you guide and guard our students Lord as they perform every day keep them safe in our hallways and in our classrooms we thank you again we love you we praise you in Jesus name amen I pledge algi to the BL 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 Texas pledge honor Texas flag IED Al to the Texas one State under God one and indivisible thank you both okay since we have no citizens participation
003this evening we will move on to um action our only action item of the night item 3A consider and possibly take action regarding map testing for the district okay um well as our team is making their way up here I just want to kind of recap where we are on this this is a topic that we discussed a few weeks ago and and had great conversation during the board meeting um coming out of that meeting I know that we had some more questions to answer I thank you we've had great dialogue back and forth a lot of questions and answers and data sent back and forth to you uh over these last two weeks this is the team that does all that work behind the scenes and um because we have had you know quite
004a bit of conversation two weeks ago and and quite a bit back and forth what I've really asked our team tonight is we've limited them to just four slides because I didn't want to belabor the point tonight but obviously we're here to answer any questions you may have as well but uh we love for them to introduce themselves and then and then we'll share some uh new information all right good evening president oder members of the board Dr null uh we've met most of us before my name is Wendy tisdel I'm the coordinator of assessment and instructional materials thank you for giving us the opportunity to share a little bit more about assessment good evening I'm Darren carile I'm a director of curriculum instruction I don't know if this is working there it's not standing
005oh there go it's the user I'm Darren Carlile director of curriculum instruction and professional learning I'm Lauren heler the coordinator of accountability data analysis and performance reporting hi Linda Stewart director of school Improvement good evening Terell Jackson teacher incentive allotment coordinator so we do just have a brief overview we were asked to bring some information about types of assessment and that is what we have for you this evening so I want to make sure I say that these are are not all my words it just so happened that we were deep in the um the documents related to the blue bonnet curriculum and the blue bonnet um keys to success for assessment actually align with the types of assessment um we have in our program here in Conor so that these words come from the
006tea assessment cues to success um there are three kinds of assessment there are curriculum embedded assessments such as our quarterly assessments these could be either formative or summative they're always aligned to the instructional material they provide insight for teachers to respond to individual student needs they usually assess only current standards or Spiral Review then there are interim or benchmark assessments such as map these will show the degree that students are on Pace to meet end ofe standards they're aligned to the standards holistic and cover materials across units these are the assessments that are easy to Aggregate and analyze and in the case of map they are Diagnostic and adaptive in nature and then of course the star summative which is used for accountability evaluation of schools or to measure overall student learning outcomes all right
007so my turn um I get to talk to you a little bit about curriculum embedded assessments um within those we have our quarterly assessments and their purpose uh will first of all we give them within the last uh two weeks of a grading period for elementary intermediate we give them quarter 1 2 three quarter four because we do star we use the star assessment uh tiqu that are assessed through our curriculum um quarter 4 so that we're not double dipping and giving the kids two assessments that serve the same purpose so that's why there's only three um in at the elementary intermediate level um they also assess content that's been previously taught as defined by our Curriculum maps um they're designed to be completed in one single block of of of instructional time so usually
008at secondary it's about a 45 minute 50 minute period and at elementary it fluctuates but by and large about 50 minutes is what we average across the grade levels um that's what they're designed for um they're provided to teachers before the beginning of the quarter so that they they know what's going to be on the test so that they that drives their instructional practice um and helps them to plan uh with the end in mind and finally they are adjusted annually based on feedback this is our first year to have quarterly assessment so we're in that process right now to collect and gather data from the campuses from teachers from administrators so that we can make those adjustments um moving in into next year and then under curriculum embed assessments you will also find um
009now with our new Blue Bonnet curriculum you're going to find the unit assessments or our uas and those would be in the grade levels that are going to be implementing Blue Bonnet learning there's one at the end of every unit and the various grades fluctuate some grades have six units total some grades have 10 units total so at the end of every unit there is a summative um unit test so map is a kind of interim or Benchmark assessment um as I've said it's a dynamic adaptive assessment it will measure both achievement and growth over time it will predict Star Performance but it also will predict act or sat performance starting at second grade in fact they can start to predict over time um how a student would perform form on Sat or act in
010high school it does identify identif individual student strengths and weaknesses um so that we can gain precise insights to make critical decisions and personalize our instruction it also gives us data for performance and growth at the student class school and District level so that we can identify Trends spot potential problems and plan for improvement so we have talked about this before but just to remind us these are the assessments that map testing will replace um in the different grade levels and contents and with that we would like to request your approval okay so moving forward I'd like to give everyone an opportunity if you have a question to ask your question if you have something you need to say share it but then we'll move on okay anyone we'll just go down the line again
011um first I want to say thank you very much for digging deep and coming back to us again I'm very grateful for your work the first time and and even more grateful for your work that you did this time as well um I'm just curious um I asked Wendy this not too long ago what did you have any aha moments that came out of um the polling that you did or the survey sure for for me the big aha was that we need to make sure that everyone understands the purpose uh purpose for doing things is very important if people understand the purpose then a lot of times they can get on board even if they're not on board so what I what I noticed was that not everyone understood the purpose um and that
012that was one key takeaway for me I would have to say the same for me for it came to fruition before I had the survey results um just because I do spend a lot of time on campuses and I like to talk to teachers and find out what they think and I would always come back to Wendy and say Wendy people are just not uh our teachers out don't understand the purpose of um the different assessments because when I sit with them and I say this assessment helps you build this type of small group and remember we also have this type of small group so this assessment will help you with that it makes sense to them but there's one of me and thousands of them so getting that information and that's where we've been
013working behind the scenes is how do we get that information out to everyone um so we have some ideas as to how we can do that moving forward into next year but I would say um it really falls back on that really making sure that not just our teachers but also our administrators really understand the purpose of the various assessments that we give because they all do have a very distinct purpose I have one more question too can you tell me remind us one more time how much instructional time you Sav with um the map testing so for reading in elementary um we've been told 21 in instructional days uh for math we've done some basic calculations um given what we were told about the number of minutes it takes to do small groups of
014four to five students turns out to be about 14 to 15 instructional days at elementary thank you those are all questions I have I don't have any questions um we've talked about this quite a bit um I'm a huge fan of what you guys are doing what these um diagnostic tests will will achieve so I'm yeah I'm excited about it um again thank you very much for putting this together um I have uh talked to a few teachers uh since our last meeting and uh I I was in support of this the last meeting um I I have just a quick question so first of all for the folks that are listening I don't think that was the were the survey results uh posted in your in in this did you want to share with
015survey results were just for those that are listening what were just what were the general the general takeaways from the survey oh the general takeaway was that there were positive feedback and negative feedback um my what I have surmised yes they they wanted to do one or the other so the campuses that piloted had to do both map and they wanted to do the Bas testing okay and so then that's why I say purpose is important here in the communication of purpose because some of the comments were they said this would save time but we had to do both got it well you were only doing both because this was a pilot that was never the in that's never been the intention over time and you did mention that um and then uh just uh
016briefly I another teacher that I spoke with mentioned well what do you do with the results um and so could you share a little bit about that as well sure so at the district level one of the things we've already been doing is is talking about how teachers can use these results and when we met with teachers after each um of Boi Andi we looked at the reports they can get there were a lot of ahas in the room for oh my goodness I can see where all of my students are falling at a glance I can also look at individual students and see what their skill strengths and weaknesses are what they're ready to do next which is very powerful we don't have another assessment where you can see what students are ready to
017do next got it um so that growth there is is going to be a key component for us that we look at how we push all students the Temptation in education is to uh teach towards the middle um and that's why sometimes we see students that are already strong not grow math gives us the ability to know how we grow our top level students as well as our bottom level students well it sounds like a great tool I'm I mean it sounds like it replaces it replaces tests so we're not doing extra tests they're getting 21 and then additional 10 days back um we're not paying anything additional because it's covered under the allotment and um I mean listen we do hard things and and this is something that is is worth the outcome so
018I appreciate you thank you go ahead okay first I want to thank youall the team right here that's sitting in front of us for coming back and answering questions that we may have I appreciate the work you've done Dr Medford I appreciate you um providing extra data for us uh the middle of year data that you provided was very helpful from the pilot studies that was something that we hadn't seen and I appreciate the extra effort on your part because I know you've done a lot of work on this so thank you um also want to give a shout out because she's in the crowd to uh my favorite principal because I'm partial Dr Lori Jacobs she was quick to pull me aside and and offer an explanation to me about the things that I
019wasn't understanding and the benefits of map and how much time that's going to give our teachers at San jento at least um for sure are excited about the time they're going to be getting back for classroom instruction so Dr Jacobs thank you thank you for your passion and and your support of your teachers because I think that they need to know that um not only um at that school but all of our principles are going to be on board with this and support the teachers so I really appreciate that thank you'all hi thank you all so much for your presentation um I'm still kind of trying to put together why if map can kind of give us an idea of where individual students can grow and even show us Trends on campuses why we would
020continue to give the QA instead of using our curriculum to I get like to help with where the growth needs are right so we talked about the purpose and so qas have a little bit different purpose so that some of the teach are assessed via map but not necessarily in the sequence and the alignment that we do it in our in our district and so the QA give us at the district data a lot of information as to is our is our written curriculum aligned to our teaching right and maybe there's a skill that is very foundational in nature that we haven't paced out correctly in our scope and sequence that we need to give more time to teaching or less time to so we look at the data to help us beef up our
021curriculum which ultimately helps our teachers teach the curriculum better and in improve student achievement I also want to say thank you for coming back with this data um I think it was really good to see the difference between the boy and the Moy um just seeing the growth that happened in that time um and then I did the teacher surveys were reflective of what I'd previously heard um so I do like the plan to try to address some of those concerns um I'm also still a little bit concerned about having the quarterly assessments and doing so much district testing I'm to take away from Individual testing a concern I have with the QA is the pacing element um and then the fact that it's districtwide across a diverse student body um in some ways and
022tell me if I'm understanding or wrong it seems as if we're giving star for a grade um you're naturally going to have some students that would perform poorly on a star some students that would perform better but when we're looking at tees we're looking at curriculum um it seems that that's kind of what the QA would do and I'm being told that it's now being required um for final exams is that right so at the secondary level um we had the question when we were creating the QA um whether they had to give a final and a QA and of course I think we would all agree that we don't want lots of testing particularly when it's the same purpose and so the final and a QA essentially are a Criterion reference test they H
023they're the same purpose we're getting information on whether the skills that we taught our students have been mastered so um what we offered is use the fourth QA as your final exam um and in some cases it was brought up that they felt that the QA was not long enough for a final so we offered to leave it open for teachers to be able to add additional questions but again did not want our teachers to administer a final and a QA so for grades 7 through 12 is there if there is a QA given in that course qa4 is to serve as the final exam and they can make adjustments to it to make it longer if they'd like um but they they don't give both because it's the same this required as a grade
024though we do require at the end I'm just concerned that you know some teachers might have to ret they might be in a different spot so their kids are going to perform um poorly on the QA versus you know the map it seems that you can really reach students where they are and help them grow whereas the QA when we're looking at the start a lot of times we're also looking at growth but to me this would just be grading a kid on performance only right so another purpose of the quarterly that I didn't mentioned um previously and it's another reason of why we wanted qa4 is we also have um courses that are not star tested but that allow our students to really practice for the TSI and the pre-sat and sat and so
025that qa4 really gives our campuses and those courses lots of information on how students are performing and what we can do to help them practice and prepare for those assessments as well some of our students still um are they does everybody have to to take that final or do we have some kids that are exempt from the final usually we do have exemptions and they're able to exempt the QA if they're eligible for a final exemption um that's in our guidance documents that they're able to exempt that final QA as well um and we've had some discussions with campuses who want because of the TSI data that they get and the Prat who want the data but also want to honor the kids being um exempt from that so one of the options that um
026they'll do is that they will give the assessment but they'll give it a lot earlier they won't give it in that window um just so that they are able to provide that data um to the students and help them work towards their TSI PSAT and sat goals um I also want to say thank you and one of my little rock stars over here that I just love for Tia stuff I'm so excited you're here because um this was one of the things that I had already talked with Dr null about um uh the positives I've heard about the map uh again thank you for the data because that was the one thing we were wanting back in the last vote and um but yet we didn't want it to delay us being able to do
027this as well so it it's like how fast can we do this um so thank you we appreciate that um but Tia the one thing I'm hearing is that well do we have a TI Tia uh plan for ramping up more on TIA yes is what I hear um the second thing that I heard was we're going to be able to scale districtwide a lot better and by using the map testing and that means even our non-star grades are going going to be able to be able to be participating in Tia correct Curr currently um for our expansion plan for 2025 2026 we have taken our current eligible 26 Tia Phase 2 campuses and allowed them to be expanded to all six of our categories in the application for tea so that's going to add
028an additional 280 additional assignments to be able to be eligible for 2526 we've also looked at expanding our current campuses that have greater than 35% ecodis and that's going to bring an additional 280 additional teaching assignments and for our retention and recruitment purposes for our special education um for those hard to fill positions life skills rise and SDC that is going to bring in an additional 90 additional Tia assignments um so overall currently we have 869 eligible Tia assignments at 26 Tia campuses with the new expansion plan that we would like to bring in hopefully with the map as well which will help increase those assignments we will add an additional up to 630 eligible Tia teachers for next school year for for a grand total of that is I want to say approximately 17
029about 1,700 students and 1700 teachers around 4,000 teachers teachers correct so we're almost getting to half at this point but and then we can go further hopefully after abely so I mean and each time we add we're having to make sure we're covering so we don't not get M cor yes absolutely so the way that we have phased in since we've began our first data capture school year in 2122 we wanted to ensure that all of the campuses and the assignments that we brought in we're all um going to provide a positive correlation for our data validation which is our result from tea to be able to approve all of these teachers so what we've been doing for the past three going into four years have been has been working um this year now we
030have 384 teachers that will receive designations this school year out of the 869 which is almost 50% of our designated teachers at our Tia campuses so absolutely we do want to expand but we are doing it cautiously because we want to ensure that we still have a positive correlation for that dat of validation okay and just one more thing um inine with that and and I think you've heard it we've uh truste May and myself being up there at the legislature as much as we have been the one thing we keep hearing is that but you have Tia money you can get Tia money and they don't right I know legislatively their their thoughts are that you can pay your teachers more if you're doing this they don't I don't know if they fully understand
031what goes into that and I didn't fully understand until the presentation and my learning prior to the presentation trying to learn it so um we've got if in their minds they think they're giving us money to work with we've got to find a way to access that money so I'm thankful for your expertise and your knowledge in this because I I'd like to see every opportunity for teachers to access it Absolut for sure absolutely and the funds come from the state once those teachers are designated so they have to meet Statewide performance standards in order to be able to become designated once they're designated um then the state releases those funds and that goes directly to the teacher so just like we want to be able to ensure that we get more teachers in we
032also want to make sure that our validation is positive and we have a positive correlation but by adding these um additional assignments and adding map that's definitely going to add additional assignments for um our K first second grade reading and then hopefully if we include map that's going to also include our second grade reading and Math teachers as well so that's going to be an additional teacher set anything we can do to unlock that money for pay I mean I'm like as long as we can do it effectively because there's nothing worse than them getting to the end and thinking they're not going to get it absolutely can I ask just clarifying question so map across the board should help our data validation process right so it should bring us absolutely which in theory and
033not committing us to anything here right but it should allow us to be more aggressive in the future about adding additional teachers because when we're when we're close to not validating our data we have to be very cautious and add slowly if we can if our data can can be um show better correlation then we can be more aggressive and adding so we have a chance to really kind of ramp it up in the future so do I have a motion I would like to motion that we adopt Northwest evaluation Association measures of academic progress and growth for the 2025 26 school year do I have a second second all those in favor show by the uplifted hands oh I'd like to make an amendment the motion okay just voted we just yeah I vote
034to adopt okay so it's too late to make the amendment because I already called for the vote okay well I called the vote um it's fine are okay all those in favor show by The Uplift of hand okay [Music] unanimous thank you all guys thank you all appreciate you great work thank you guys okay moving on on to um our next section of item 4A receive 2025 2026 preliminary budget overview all right we're going to have Miss Garza join us and our primary purpose tonight in the workshop setting here is is really item 4B which is the health plan and premium update because that is a item that is uh pressing on time you we will be asked uh at the board meeting in two weeks to approve the the health plan and so that's
035that is our primary purpose the but in speaking to Karen and and because of part of the recommendation that she's going to make regarding the health plan involves a discussion of fund balance she felt like it was just important to run back quickly through the budget I don't believe there's much new here than what you've already seen but um she just felt like that would be important so we're going to we're going to do that first and then we'll get to really kind of the meat and potatoes um portion but you won't be asked to vote on anything tonight on either of these two items but uh in two weeks we will vote on the health plan all right well good evening president Odin Weller members of the board and Dr n it is my
036pleasure to bring you a preliminary look at the 2526 budget I'm going to move through this fairly quickly um as we are still early in the stages of the budget planning process and obviously it's a legislative year so we anticipate many changes coming between now and budget adoption time but I wanted to kind of give you a picture of where we are in the current year as that is going to kind of guide our discussion as we go into the health plan discussion later so I want to thank our finance staff for their work in getting us to this point um we've done a lot of work already um there's a long ways to go and then also Dr Medford and her team um for working through the allocation process with us because that is
037one of the hugest um tasks that we have in terms of the budget working through all of that um because we had to get that done in preparation for the job fair that took place this last weekend so thank them for that information um I always like to start out with our awards for transparency and financial I won't talk about all the awards on this slide but I'd like to focus on the transparency Stars at the center of the of the screen our newest one is the open government and compliance star that we received this last year Dr blakelock and her team were instrumental in helping us attain that star and I am happy to announce that we are the only School District in the state of Texas that has all four transparency Stars all
038right so looking at our challenges moving into the 25 26 budget year obviously it is a legislative year so we're awaiting action on the legislature in terms of um formula changes so we've been keeping a close eye on that we're working our way out of a deficit budget we did adopt an $1.9 million deficit budget this current year and then there is no funding mechanism in the current formula to provide a raise for our employees or address inflation and then depending on what happens with education savings accounts we don't know what kind of impact that's going to have on our enrollment so we're having to kind of plan around that and then continuing to support our growing special education population with the funding that we currently have looking at our budget assumptions for the upcoming
039school year student enrollment we're going to be very conservative at 73,500 um ada8 percentage I did recommend that we adjust this to 93% we're seeing a slight increase this year in attendance and given the fact that we're being very conservative on our enrollment numbers I felt like it was okay for us to adjust that up a little bit um to to make it more reflective of where we've been certified property value growth we do not have any information from mcad yet it's too early we're using conservative numbers at 5% and then our projected tax rate projecting a decrease of 1.48 cents that is based on current law I do anticipate this to be in the 3 to 5 Cent range once we get our updated compression rates for next school year this is just a
04010year history of our average enrollment I'm sorry that was too quick sorry so if you look at the 2026 line that's 73500 are using 93% that puts us at 68 355 for average daily attendance to miss Garza for my benefit can you confirm what we estimated for this current year for enrollment 74 is what we budgeted on last year yes so just a reminder again the difference between average daily attendance and enrollment our revenue is based on average daily attendance that's how the state funds us this is simply days that they are in attendance faced by divided by the total number of days of instruction so if there's 174 days in the school year and a student is present all 7 174 days we get one Ada for that student so we're recommending 93% for
041next year 1% in Ada funding is worth about $5 million to the district now on the flip side of that our expenditures are based on actual enrollment we have to staff our classrooms based on the actual number of students enrolled and that funding gap of 7% is worth about $35 million to the district when you compare enrollment to Ada sorry just real quick I know we've talked about in the past trying to bump up our Ada percentage how is that coming along I guess that hasn't been that long it's been a couple months but any update it it is up this year right yeah yeah it it is up this year and and as we've shared our uh student Support Services principal committee team you might have seen um one of their big kickoff Graphics
042which was like helping the families plan ahead based on when would be an ideal time to vacation or make doctor's appointments we've actually got really good traction and positivity over that so we're hoping these these little things where we just keep having the conversation with her community um year round is really helping but that team's just getting kind of started on on the work shout out to Dr Taylor for her leadership on that absolutely seen a lot of posters too around campuses like it's very well advertised and I like that we're pushing it not for sending sick children to school but other ways of making sure we're increasing our attend absolutely being very intentional yes yes they they've had lots of discussion about that and I also wanted to say I saw a principal um
043talking to his families on a YouTube um presentation and he talked to his families about how important attending school was so you know I think all of the this is incredible all right so this is just our enrollment in graph format still growing um Pace has slowed down a little bit but we are still adding students each year our special education student count continues to be a challenge for us in terms of keeping up with that growth and then all of the things that go along with it and really the primary reason for this growth is just a change in eligibility in terms of what qualifies for special education um services so we are anticipating probably to exceed that projected number for 2025 I did confirm with Dr Wiggins today that there's over 1,400 evaluations
044that are in the queue right now um that are not included in the number so we anticipate this number growing even further than we're seeing here and if I could just on that one I think you explained that very well but I just want to touch on that again because if you look at this you think wow our special education numbers are skyrocketing um but we know and and Dr n and I have talked about this at length really um that tea many many years ago imposed a cap on special education and so what we're seeing is a natural release of the cap and now what we need is we need our state to fund it properly so that's what I think you know a lot of us have been going to the capital to
045work on and Dr n do you have anything you want to add about that it's not it's not that the children that we that we serve have changed dramatically like like you see here the the big difference you talk about that cap just to be clear as a district we never had a cap we never didn't serve a child because of a you know the the state cap that existed we always made the best decision that we could for a child to the point where many of us as principles you know there used to be a punitive setup where you know you you'd have students automatically be counted as failures from the state because if you had too many special education but we just we did that so it that's okay we we took those
046failures we never we never did not qualify children in the district um who should have qualified but to the point of what Karen said what changed is the state had parameters about how you qualify for special education and I'm sure you know they had uh Actuarial knowledge of of you know how many people would qualify based on the rules that they had well they have really changed those rules in the last few years after getting in trouble for the C and so that that means of the students that we test and kendri could probably give us a true number but the the number the percentage of children that we test now a much higher percentage actually qualify than would have qualified under the old rule so that's why you're seeing this this this increase so
047once again like it it can be misleading because you can look at this and think like oh our population has change it's not the population that's changed it's the rules from the state as to how a child qualifies have changed so and the dyslexia population was really you know barred from their their their rights under Ida and so that was kind of the last component so I know that it looks like a lot of this is coming from that but that was kind of the last piece of the puzzle well actually the last piece of the puzzle will be the funding piece and then I also just very quickly wanted to talk about um the basic allotment penalty um can you explain that a little bit you and I have talked about this at length
048and I think this is something that the board would benefit from hearing okay okay so special ed is funded on what's known as an FTE basis so they've assigned an FTE or a awaited amount of time that each student spends outside the classroom given the instructional setting that they're in and they calculate an FTE and that's what drives our weighted funding well on the basic allotment side there is an offset so if we're funded on a045 FTE for a special education student our basic allotment funding is reduced by a corresponding 045 so we're losing money out of the basic allotment for the time that these students are spending outside the classroom and we all know that those expenses don't decrease that teacher is still in the classroom we're still heating the classroom we're still cleaning
049the classroom there's still a classroom full of students even though they've pulled a handful of students out to go into a different instructional setting for a portion of the day so it is essentially penalizing our basic allotment or our general Ed allotment for the time these students are outside of the classroom and I know Miss May and and her group have been fighting really hard to have them look at this to see if they could just do away with the with the disability penalty is what we're calling it um because it's worth about $18 million to US if they were to take it away so it would you know involve change in law obviously but that is something that would be a substantial increase in funding if they were to remove that I don't mean
050to to keep going on this but I'm going to because this is a prime opportunity for us to educate the people that um um we need to be heard MH this affects all children every student in our district not just SP students this penalty affects every single student and technically every single employee as well because that that's less money in in there not to mention the district is already spending 30 million more on sped funding than we're getting for sped funding so you take that 18 million that 30 million that's that's what's coming out of our general basic allotment or and that's critical so I just want people to know your voices need to be heard in Austin to let them know to fix this basic if we get nothing done but this it it
051would be huge for our district and every District in the state of Texas so just that's my soap box thank you I know this wasn't the presentation but I appreciate it well and I and I know you said I'd like to compliment Miss May and her team that are working on that but also want to compliment Karen because there's there are a lot of CFOs across the state that don't fully understand this and in a lot of ways Karen's voice has been um a leader um I've seen her quoted uh although she hasn't been in Austin I've seen her quote uh travel uh she's a little famous in the world right now thank you all right and once again a reminder when we're looking at our budget for the upcoming school year we have to
052keep in mind our spending requirements that are related to all of our special program allotments you'll see them identified here in the green and then this is looking at our program area spending for 2324 for compliance the green bar represents the actual allotment that we receive from the state the yellow bar is what we are required to spend based on that previous slide and then the blue bar is what we are actually spending and of course there is a clear outlier here and so hopefully we can make some progress in this area this legislative session um to help us close that gap on special education funding so just a quick overview of our current tax rate at 9496 the two components are maintenance and operations portion at 6696 and then our debt service at 28
053this is a 5-year history of our tax rate this is a a look at our peer District tax rates and I've I've included um in the blue portion which is the m portion this time around the number of tier 2 pennies that all of these districts are um accessing and I and I only show this slide to to make the point that often times we're asked why can't you have a starting t-shirt pay similar to Umble or or new cany and this is the reason why and I'm not I'm not recommending a Vader we're just trying to educate our community in how funding works and and why some of our surrounding districts are able to do some of the things that they're doing because they have chosen to access these additional tier 2 enrichment pennies
054that generate additional funding for the district essentially making that cup that we talked about at previous workshops larger um you know there's still a shared responsibility and who's filling the cup but it helps to make the cup bigger when you're accessing these pennies but did they access those pennies before they were um required to have Vaders most of them some of the majority of them probably yes so they accessed those before the were the requirement and so for us with the only five pennies accessed I mean they they exercised that right before and now it's so they already had it out there out of the Gat so we're not in that same challenge to get there now right and just to be clear I know we added the line on the bottom of total property
055value Karen but just to be clear that total property value only impacts the uh amount of funding that's received from the the green portion of These Bars correct um the blue portion of the bars the property value has nothing to do with the amount of funding we receive from the blue portion of these bars so it's based purely on enrollment it is not based on property value uh of the community so just just to make sure make that distinction and the green only services our debt correct that is correct yes and that's that's where property value matters right that it helps us to generate more revenue for The Debt Service side when our property values go up thank you and this is uh a a new slide that we added this year thank you uh
056Mrs Dawson for recommending this it's kind of interesting to see um this is the average taxable value for our peer districts for homeowners and what they are paying in property taxes so you see Spring Branch their average tax bill value is $521,000 and their average taxpayers are paying $5,600 um in property taxes the two districts on this slide that are actually paying recapture are Spring Branch and Fort Ben so that means they have copper pennies that they are generating more local revenue on those pennies than the entitlement for that tier 2 penny is worth so they are having to pay money back to the state they also made like huge cuts recently too didn't they yes yeah I was kind of surprised by Spring Branch I knew they were a property wealthy District but I
057didn't know that it was this high so this is what a a a gold and copper penny are worth for conro ISD based on um our weighted average daily attendance which is the kind of the driver and that guaranteed yield that the state sets 12.5 million for a gold Penny and 4.7 million for a copper penny so looking at our 25 26 funding estimate this is our total revenue increase that we are recommending for next year and of course this again is based on current law there's going to be a lot of changes to this as we move through the legislative session 7.36 million for property tax increase based on that 5% growth State Fund ring increase of 9.37 and primarily the driver here is that over 65 um hold harmless correction that is now
058flowing through the formulas about 7.5 million of that is in that 9.37 Million number we're going to add um additional revenue for our Tia program there'll be an offset to this on the expenditure side and then as interest rates continue to decline um we're going to make an adjustment to our interest earnings number because we do anticipate that slowing down as interest rates decline and then TRS on behalf that's that pass through entry that we're required to make um there'll be an offsetting expenditure for this as well so 19. 23 million in additional revenue for next year and then of course based on current law talked about the allocation process we've worked through this already the majority of our allocations have been released for campuses so that they could prepare for the job fair this
059last weekend we are 90% payroll so this was a a huge obstacle for us to get through in terms of getting the that was initial allocations out to campuses and thank you again to Dr Medford and her team for helping us through this Miss Garza I have a question on um specifically just as an example um the allocations did we reduce the number of art teachers per campus at elementary we we did not make any changes to our formul I just want that out there publicly I was asked this last night and it was a shock to me I didn't think my answer was we haven't made any deduction so I just want that public now we didn't change the formula so there could be a campus that may have lost an art teacher B
060if the campus shrunk correct that could happen but we did not change the formula that generates an art teacher fantastic and that was my answer you can see that on the the chart how many art teachers they get it's based on enrollment so yes we on that question yes but I wanted to point that out public thank you and I'm not going to show you all the grade spans this is just an example of the level of detail that we go through after those allocations are um aligned to each individual campus to make sure that we have equity in terms of Staffing among all our campuses based on these formulas and I have one more question about that is there a specific line item for Behavior coaches I see instructional coaches but just so Behavior
061coaches would be funded out of title one for our Title One campuses thank you so we only have those at Title One campuses no it's if if they don't they can also like trade in an allocation so Junior High gets a certain number high schools get a certain number of of teaching allocations and they make choices on those based on what their campus needs so where we the behavior coach comes out of which allotment is my question uh it depends on on the campus so they may choose to use one of their teaching allocations that they have because the instructional coach for us is the same um designation as a teacher so it's the same pay grade or they could use their title funds to do so or a behavioral coach right for a behavior
062coach they have either of those options so funding is both but up to the campus okay oops all right so and there's a lot of numbers on this slide I'll I'll these are the Personnel changes that we're recommending for next year again based on current law and the funding that we have available right now but I'll draw your attention to the bottom right corner of this slide we are recommending um total FTE additions of 110.5 to the general fund at a cost of 5.8 million if you'll move just slightly upwards on the slide you'll see the green portion says special education we have been really intentional about making sure that we try to prioritize special education so of that 5.8 million 4.2 of that is positions directly related to supporting our special education population at
06378 and are these new positions or we're just trying to replace those these are these are new special ed positions so you can see the green right above that box instructional positions 31 teachers 39 pair professionals and I will tell you this is not all that Kendra asked for we we had to be we had to give her what we thought we could afford for now um to get her going for the job fair and then obviously to support what she needs for the new campuses that are opening but we we've scraped the surface in terms of what the needs are but um we're working with a finite amount of funding right now and so trying to give them at least something to get them going for next year so how short are we in
064this number what did she ask for versus what we're giving here she asked for 51 teachers thank you yeah are we losing to moving at um at up to the top graph yes so I was going to talk about that next so if you look at campus positions that 7.5 overall net gain for the campuses you would expect that number to be higher but remember we talked about what we budgeted last year for enrollment we staffed our campuses last year based on 74,000 students our enrollment projection for next year even though it's it's a growth from where we're at currently is an actual reduction of where we budgeted last year so that's why that number looks like it does and then if you look at elementary compared to k6 you'll see a huge shift in
065staff there and that is because Campbell and ISO are both K sixes so when we rezoned all of the teacher movement moved from a K4 to a k6 and why that's why you're seeing that shift there I noticed I think it's like 12 or 13 different somewhere in there is the difference yes that's it I have one more question about special education how did we do at the job fair with candidates for special education I know that the pipeline is a whole another issue I don't think we have exact numbers yet I know just you know walking around talking you know you saw range truthfully of like I filled mine I'm still looking so I don't until we can kind of get the rect to hirers in and they check references and get all of
066those sit in we'll be able to give you an update but um some places left feeling really excited about it and some were like I still have work to do so I noticed almost every campus had an opening in special ed well yes when you're adding 31 and then just in the turnover that we have um it's it's which is why you heard Miss Jackson mention we're adding it TI especially the program teachers because we're really working to to keep the ones that we have here and shout out to Dr Wiggins for going to the University of Houston I think for their yeah for their three I think out fed students that are going to be graduating so it was good what the final numbers are we'll still have to see can I ask a
067little bit more about the technology coaches so I've got in parenthesis that those are not new positions those are positions that were formally funded out of Medicaid and because of the reduction in funding and Medicaid we're bringing them to the general fund so though it shows 25 new POS support positions six of those are existing employees um that we currently have and of those 25 14 of those are um police officers and custodians that are going to support Campbell and Isel our new campuses so in terms of actual new support allocations there's very very few and we were very intentional about this too the needs were more than what you see here but trying to keep it to where we thought we could afford for now um until additional funding the campus allocations have all
068been released like I said to to help them prepare for the job fair and then these remaining support positions will be released as we get closer to Summer and just to make the point on those support positions you could see the titles you know the way we operate with that is is Dr Medford maintains a list from all Departments of of their needs as well as Karen does from the the um Finance side and we basically prioritize that list and it becomes a long list and as we're working through this we just we draw a line as to where what we can afford but you can see on here these the ones that the only ones that really made the list this year were places that we feel like the investment will will grow so
069like if we want to grow Tia we have to add another person in there to help us expand that right so by expanding that we we may bring in millions of more dollars but but if we don't invest that person we can't same thing with um HR and hiring right we we are short people in HR we know because we we've heard the feedback that sometimes it slows us down and and it costs us candidates so that's a place to invest so that's what you're seeing there places that we were very intentional about we we have to invest here is the same for the grants or is that do we already have a grant we have one Grant person three I spoke to them at the job fair I just want to give them a
070shout out because uh great so this is an addition this is an addition to support So Dr Wiggins doesn't have a grant specialist she manages her budget specialist by herself so this is to to help Dana who's the our current um director get adding a grant specialist there to take some of that off of Dr wigan's plate because it is extensive and we've never had a grant specialist for special ed Dr Wiggins is a grant specialist for but is that true we have three and currently three people handling our federal money the title one through title for and and looking for Grants the're ones that support Mr McCord's buses yeah they're amazing um and so we're giving them an additional staff member so that they can take on the idea B budget as well for
071Dr Wiggins and I would I would like to point out that while we are mindful of trying to maintain uh you know to manage the and hiring Etc because we don't want to divide it and dilute it and everything but we're really blessed to have the grant specialist because that's in order to get a lot of the extra funding you have to have one of those or else you have to let the funding the extra money go by and if we weren't doing that we I I asked for the numbers not too long ago and we're by out far far outweighing what we're bringing in with these salaries and benefits that we're paying because I did ask that question because I was concerned about it you know and then I heard from other districts yeah
072we don't we don't have anyone for Grants and we have to let that and even in state legislature they give grant money and unfortunately it's one time lump sums but they'll give grant money but they can't even apply for it because they don't have someone to do it and they're extensive some of these GRE applications are wow and that team is absolutely so I just I'm out as well a prime example of that is our bus grants Dana and her team have been able to secure over $4 million in bus grants for us to put new buses on the road so I mean that in itself pays for the team for years those are all competitive grants that they're having to fill out extensive applications and then there's a followup when the buses arrive that
073we have to dispose of old buses and so it's it's a very detailed and and Juan and his team in transportation as well have been very ingal and help helping us get that money but $4 million is is a lot have we ever considered Contracting the grants out we have not curious and to your point uh Mrs odenweller we have had some grants from the state that we've applied for and received and received kind of more than our share because not enough districts applied um because it was come some maybe they didn't have anybody to do it so we get that Advantage because we're we hit everyone that we can that we see did trusty Nelson State question just a second ago it's funny that you mentioned that because I was talking with someone about
074grants and Grant funds and so forth and people that contract them out and interestingly enough there's not that many that do school ones oh I I know quite a few so but it was it was just that it was interesting when I brought it up professionally I know quite a few but I was just saying that that was one of those things that it's probably more specialized so can I just ask a quick question looking at the tech coaches is that something we've ever looked into paying for out of the MTA funds because that is a usage for it or are we doing that at all they they actually were there for one year that we we removed them from Medicaid um in this current year and put them on I impa but we need
075the funding in impa for other things so it wasn't it was a one-year deal we knew that when we did it that we were going to eventually have to bring them to the general fund you remember last year we brought almost $3.7 million from Medicaid to the general fund we were trying to kind of gradually do this over time um and then depending on what happens with Medicaid next year you know hopefully the hope is that we can keep what's there there for now um if funding improves but we were trying to do this in a gradual way so we were able to find a funding source for these coaches for one year out of impa but we have to bring them now because they need that funding for other things and one of the
076things we've talked a lot even here is making sure teachers have all the things they need and so that's one of the funds that we can be very tight with making sure that teachers have whether it's we talked about getting graphing calculators at one point but when teachers say they need they need the things they want all of the things we want to really protect that Fund in order to provide that for them and have positions uh where we makes the most sense right so it's all about balancing all of these different funds but hearing what teachers need that's the fund that we need to use for teacher resources for instructional materials specifically M Miss Garza speaking of Medicaid did we find out I know we got audited for previous year's um income or funding
077that we received are we going to be are they going to go back any further no I mean the the notice that we received for repayment I think believe it was $111,000 was related to the the lawsuit that happened in 2011 so we we're already in the process of repaying that they just netted it against our interim payments for the year so that will be taken care of um there is a bill that's been introduced now this is all preliminary um House Bill 500 that they've they're putting $934 million into to support districts that lost money from Medicaid so if from what I understand it's going to be onetime funding but at least maybe we can recapture some of that money that was taken away from us over the last three years thank you all
078right so looking at our expenditure budget increase projected for next year again based on current law are 5.89 million for um Personnel changes that we just talked about on the previous slide we're going to make a slight reduction to summer school and then discontinuing the reading Academy stien for a savings of 1.5 million this is the offset to our teacher incentive allotment for $1 million and then software costs we did put a line item in here we've been very intentional about making investments in software that is more um applicable to a district R size with our website software design our two-way messaging our incident IQ which is our comprehensive inventory software and then every time we turn around and there's a renewal on software prices are increasing and so we just felt like this was
079an area that we needed to put a dedicated line to add to the budget to support all of the areas because this extends from Transportation all the way to our servers and our software that we use to run our financial systems all of those areas when we get the renewals every year there's an increase in fees and so we felt like the was was an area that was underfunded in our budget so we've got a million dollar line item for that and then other expenses utilities for our new campuses Fuel and then property insurance we're still in the process of that um we've got a placeholder in there for that and then just general Supply increases and then this is the offset to our TRS on behalf the $4 million that you saw in the
080revenue side so 12.09 estimated expenditure increase so putting this all together total revenue estimate of 700 19.3 million and total expenditures of 7246 million that puts us at a slight budget deficit of 4.76 and again we're early um if additional funding comes we will make adjustments based on what comes and you know we were trying to get this as close to balanced as we could so that when funding comes we can attribute most of it to a raise um so we will continue to refine this and watch as the legislature moves through the process to see if we can bring this closer to balance budget but for now this is kind of where we stand like I said we have a long ways to go until until the final budget's adopted will you be bringing
081forth items um potentially to tighten if things are not going the way that we want them to go if the legislature looks like you know worst case scenario and we don't think we're going to get any funding we can then kind of revisit where we were going to make adjustments and then maybe depending on where our fund balance is at the end of the year we could move forward with a small deficit budget we'll just see you know we'll have to kind of wait and see what happens um with funding from the state but we're hopeful that something will happen this year regarding funding from the state can you tell me what your pie in the sky what your middle level and what your super super Baseline level is like what are you looking for
082I mean we we would like enough to support a a very substantial raise for 2 years because whatever funding we get has to last us the bium so ideally if we could get enough to support a raise for two years it anything substantial would probably be 25 million a year you know if we were going to do something in the four to 5% range so that's Pie in the Sky I don't I don't believe that's going to happen I I think it's probably going to be more in the 20 to $30 million range for the bium um the committee substitute for House Bill 2 is looking a little more positive for us um in it's $395 increase in the basic allotment so that's $9 million for every $100 they increase so that that in and
083of itself would be pretty substantial now it would allow us to do something pretty good for a raise for next year but probably wouldn't support anything substantial for the following year but um in reality I kind of think that's probably where it'll be I'm thinking between 20 and 25 million is for The Bu so 2 and a half% raise cost 17 we're guessing we're completely guessing I mean this is lots of things could change and we adopt the budget sorry I'm new board member question yes um just clarifying we adopt the budget in July correct August August at the August regular board meeting yes so June will the DK will settle have a better idea okay we'll be coming back we'll talk about all of this again right we'll see absolutely much clearer picture okay
084thank you so things that are not accounted for in the budget that was just presented to you obviously an employee raise and then additional special education Staffing if if we have funding to support it additional support staff and then increased cost due to inflation so now just an update on our fund balance um wanted to give you an update on the over 65 5old harmless correction that we brought to you in December um for our over 65 residents as you recall when we discussed that correction in December it was worth about $17.5 million to us and that's broken into two components the first 10 million of that is attributed to tax year 23 um that correction has been filed it has been certified by the property tax division 2 tea and now we are just
085awaiting them to load those Corrections into the summary of finances which will then ultimately result in payment to the district so that'll go straight into our fund balance um and then the 7.5 million is that correction that's flowing through the values this year that's already been in the preliminary values that were released by the property tax division in January so we're seeing that flow through the formulas this year so um that money is coming to fruition so looking at that be an annual savings or is it just for these years it should be annual unless they make changes to for the 7.5 that's recurring yes props props to miss Garza for identifying that so now looking at our unassigned fund balance we ended 2324 with an unassigned fund balance of $16.5 million and then based
086on the budget that we adopted for the current year we were anticipating that fund unassigned to drop to 144.5 because we did adopt $ 11.9 million deficit budget we are projecting our fund balanced unassigned be at 162.5 for the end of this year as a result of that $10 million payment and then the 7.5 that's flowing through the formulas this year so that's an $18.3 million increase over what we were anticipating now we're only 6 months through the fiscal year so this is a projection at this point but we're trying to be very conservative at this point where you getting that extra the 18.3 I see 17.5 so some of that is coming from just student special weighted funding for our special education population growth so that generates additional State funding over what we had
087budgeted Miss Garza and if our attendance is a little higher than we budgeted then we we'll generate a little but right now currently since we estimated a 74,000 um enrollment and we're only at 72916 currently is that correct so we're looking at a $6.7 million so combination of yes even though enroll is is short of where we thought we were going to be and the same scenario happened last year right so enrollment isn't where we thought it was going to be but our weighted funding is higher than we thought it was going to be because the growth in the special programs and then that increase in attendance is also helping to drive that funding up as well okay so that's not going to hurt us as badly as it seems no and we may have
088vacancies along the way that we didn't fill uh because of that lower enrollment and we always have vacancies throughout the year too that there's always payroll savings at some point too so that generates some of this money at the the end of the year as well so we're in a much better place in terms of fund balance um going into the new year so if we look at our 2526 um budget that is currently what I shared with you at 724 million our Target at 20% of that would be 104.8 million and if we're projecting at 162.5 so that puts us with capacity going into the next fiscal year at $18.1 million or 22.5% of our budget now keep in mind this budget does not include a raise so um if we're able to provide
089a substantial raise for our employees the denominator changes right so we have to do 20% of a higher number but like I said we're in a much better place in terms of fund balance and this is kind of the reason I wanted to share this information with you before we did the health plan because is going to come into play when we start our discussion on the health plan so just um store this picture in your Timar the 18.1 million that's what we be going into our fund balance that is so our goal is to keep 20% in our savings account right so 20% of our annual budget we want to keep in our savings account so this means that we have 18.1 million more than the 20% in our savings account I just can't
090help but notice it's it's strikingly similar IL to when we pulled 18 million out for the a couple of years ago no no coincidence yes thank you all right so what's next we will finalize our Revenue projections based on legislative changes we'll continue to refine our state funding and then as local assessed values start to come in we'll start to get a preliminary look at those sometime this month that will drive tax rate calculations and then we will look at finalizing our expenditure projections um we will'll go to the district level planning and decision-making Committee in July um and then at the July 15th board meeting we'll bring you an update on where we're at with the budget and then August 5th we'll hold the first of two public hearings on the budget and then
091on the 19th we will have a second public hearing on the budget and tax rate and then at that meeting we will uh ask you to adopt the tax rate and the budget for the upcoming school year questions this is just a really quick question going back to the fund balance that's 22.5% the minimum is 22% correct our stated goal is that we want to keep at least 20% okay and we can't use any of that excess for raises no because that's that would be onetime money so we the only way we can give a raise is if we have recurring Revenue stiens it could be used for stien so if you want to do use one time money you could you could certainly do that so we wouldn't recommended at this time but you
092know as we as we move into next year's budget um when money flows in for a raise you could be in a position to say you know maybe you want to do a certain percentage of raise and then if if this still look to this point you you might could designate and we're going to do a $1,000 sipen and right at some point throughout the year you know you could you could preload that if if it still looks this you know that were there okay thank you okay so that was the easy portion of tonight's meeting the next Dr meard is going to run before we get to the next U so the next piece here is um it's the benefit plan uh designed so this is our uh and Karen will explain it but
093we you know we have a basically a self-funded employee owned health plan and um kind of like taxes the taxes always feel like they go up and our interest our insurance rates always feel like they go up Karen will show a picture here we haven't raised our rates in four years but um as we see every month the plan is on the wrong side this year and so we're going to have to do some things to make sure that our our plan remains solvent and we can continue to move forward and um Karen Karen and and let you introduce everybody but we have a great team of people including our employee benefits committee that have are trying to work through but this is heavy discussion it's not fun it just it's reality all right so
094I'll introduce our special guests at the table have Derek E from Gallagher he is our benefits consultant and has been integral in our conversations around the benefit plan and comes with a wealth and knowledge in this industry and then Tiffany mattfeld who is our assistant director of HR over benefits so they will both be helping me with the presentation tonight um dererk and I are kind of tag team through some of the slides here but before we get started I did want to thank the employee benefits committee for for serving on the committee and taking time out of their own personal time there our meetings are typically after hours at 4:30 in the afternoon and so they're giving of their time to be on this committee our our committee chair Debbie Petri is in the
095audience tonight so I want to thank her and recognize her for being here and and like Dr null said this is this is a heavy conversation that we're about to have and unfortunat unfortunately it's not something we can ignore and we have to move forward and the timing of this I know is not ideal because you know we've not been able to announce a raise um but this is here and it's it's something we can't ignore and we have to deal with it um we've had a really good run the last four or five years with our health plan and um unfortunately this year has hit us hard so we're going to kind of walk you through um what we're seeing so here's our timeline on March 5th we met with the employee benefits committee
096to kind of go through our initial plan design options for the next school year share the information with them kind of on what's happening in the current year and then our recommendations for the changes for next year um we let them kind of sit on that information for a couple of weeks and have the opportunity to ask questions of us and then on March 19th we brought them back together to kind of revisit the plan design and and go through it one more time and and then we asked them to vote on the recommendation to bring to you um on the plan design changes that we were recommending for next year and we had 95% approval of what the recommended plan design changes were for next year from the committee so tonight we're bringing you
097the initial plan design discussions that we've had with the employee benefits committee and allow you to ask questions um and then on April 15th um we will ask you to approve the plan design changes and this will some be something we will need to get done this month because we need to move forward with summer enrollment and there's a lot of things that need to take place between now and when summer enrollment starts in terms of getting benefit guides printed and all of the things that go along with that so um this is your opportunity to ask questions and then we will come back to you on the 15th with the recommendation and ask for your approval at that time can how many people are on the committee there's the committee is made up of
09831 employees was this stood up just for this or are they is it always operating no they they meet once a month this is an ongoing standing yes yes so what does it mean to be self-funded versus fully insured so a self-funded health plan is essentially that we as the employer are assuming the risk of providing health care for our employees versus purchasing insurance from a an insurance company that is fully insured why we choose self-funded is it allows us to customize a plan that meets the needs of our employees and then we can we maintain control over the reserves in the plan like we have the last several years when the plan has done well the fund balance was ours to keep it's the employees it's really the employees that are participating in the
099plan it's their money and then we're free to choose who our third party administrator is we are currently using Blue Cross Blue Shield we are in our third year of our contract with them and then TRS also has a self-funded plan it's what the state's self-funded plan is called TRS Active Care movement in and out of that plan is is restrictive you have to stay for five years once you're in the plan they determine the rates they determine the providers the financial history of that plan has been questionable um and then we have no control over whether TRS experiences a bad year we do have catastrophic loss Insurance in place so if we have a an individual claim that exceeds $550,000 our plan is no longer liable for any of those expenses our insurance policy
100then kicks in and and takes on the loss of those claims our district contribution is $446 per employee per month State requires that you contribute $225 so where does the money come from in the plan primarily two sources right the employee contribution made up through premiums and then that District contribution of $446 per employee per month and that is where the revenue for the plan comes from so on that schedule that I show you at each month's board meeting the revenue section is primarily made up of these two things we do earn a little bit of Interest money on our fund balance that sits in the bank but primarily this is where the revenue is coming from I'm sorry could we go back I'm just trying to understand this self-funded plan it sounds like we're
101kind of in the insurance business is that am I understanding that correctly like what is it does it save us money to have a self-funded plan versus a fully insured plan yes yes it does as Karen was uh as Karen was talking about before in a traditional fully insured mechanism what happens is is they rate your plan based upon your experience and your overall population right health risks all of those things and they give you a set dollar rate that goes into it and then on top of all those things there are other components that are built into those plans from a regulatory perspective um from a compliance perspective uh from their own house money all of those things are built into that if you run in a better fashion meaning that if your claims
102run better than what they in took in premium you capture none of those dollars okay if you run exceedingly higher than those you also don't lose those dollars in a self-funded mechanism you more often than not win in these scenario iOS because we are capturing the Delta between what a insurer would provide to you and what you're actually running in claims and then we have what is catastrophic coverage and some other items to basically indemnify us of a really poor or really terrible year right so what could happen is let's just say we had the same year in a f fully insured mechanism a a increase of 35 45% could happen to your total rates an increase and then that means that you are taking on more and more burden on that regard as opposed
103to US changing a little bit of the budget and having a lot more control over those claims so in the end yes you save money especially at your size most employers of a size that's you know basically above 500 but really over a thousand are going to fully or self-fund their own plans because of the savings that they can have uh by controlling those things okay so thank you you may you may say this speak to it more later in the presentation but really we kind of have two options self-funded or join the TRS path I mean that's really the kind of the two Pathways that that that exist for us um Karen's last slide kind of showed you the the negatives of the TRS this that we don't have control we can't control the
104doctors you know that's what people care about the most right is my doctor in the plan um you lose all that control that's why we've always stay self-funded um one of the things that I believe we have to watch moving forward is just to make sure that we can continue to compete premium wise with TRS uh if there comes a point where the TRS plan is providing significantly lower premiums that's when we may have to make a decision to make that change and one of the things to watch I'm probably like on Karen's slide 15 but um one of the things to watch is what does the legislature do to the TRS plan because it's state owned you know if they go dumping a lot of money into that plan to basically buy down rates
105we won't we won't get any of that benefit because we're not in the plan so it's just one of those things we have to watch moving forward um we also have a lot better opportunity if I understand correctly to customize our plan for that for our community of employees um the only means for you to customize yes yes and um that is one of the major positives I've heard over the years about conro teacher insurance I say teacher it's the whole all employees but um is that in general it's a better plan than TRS not that anyone wants to spend more right but that it's that they they have more choices they have better yeah so there you go do a lot of districts around us use CRS or are they also we're going to
106share some benchmarking slides with you in a little bit that show what our surrounding District I pulled y ahead I'm sorry we'll let you take that but to Derrick's Point most large districts are self-funded so this is kind of how the process works we're going to move to from the left to the right on this slide so the provider an employee goes to see a doctor the bill then goes to our third party administrator which is Blue Cross Blue Shield they process that claim they then send that claims information to us the employer that we owe x amount for that claim we then approve payment send them the money back and then they send it to the provider so that's kind of the cycle of how the money flows within the plan and I'm going
107to turn it over to Derek yeah so this enlies the rub this is the problem I think Dr n was specifically referring to when you talk about you know cost are rising so that red line right there is what we call National Trend and we take National trend from a bunch of different Sur uh surveys we have our own survey internally from our own National practice as well as we take other consulting firm survey as well and on average you know we're looking at growth uh you know exceeding what is right now at a 8 to to 9% leverage Trend meaning we take medical and we take a pharmacy and we put the two together and that's what we're growing at right now that red line is what the national Trend average has grown since
1082021 so with your plan that if we ran at average um with no changes and just followed suit that's where your line would have gone now that's not what happened with conro and a few things we did to help deal with that uh as you can see towards the end of uh that area and really right at 9122 um so in 22 we adopted Blue Cross Blue Shield as your administrator that Administration change was in your benefit by a large degree and that is because of the discounts that Blue Cross Blue Shield provides so every time a claim is paid Blue Cross Blue Shield is uh negotiating a better discount for that claim than what was your previous administrator with United Healthcare additionally in 2023 we updated our Pharmacy uh our Pharmacy contra contract and
109moved our Pharmacy uh Pharmacy benefit manager to Prime Therapeutics or basically in tied conjunction with blue cross that also brought down the overall cost we anticipated that from 22 until the end of the 24 time frame before uh the the increase I'll talk about in a second but it was about a12 million savings uh to the district because of those changes so very large swings that helped us bring down that Trend significantly and it that is why we've run such a great fashion we haven't been able or we haven't had to increase contributions those type of things if you'll notice the very right hand side on uh starting in July of 24 you see that bend up all right that rate went up very drastically we went up 15% um over the course of 12
110months which is a huge growth and development when we look at budgets reminder that we're looking at budgets far before your claims are coming in okay we're looking at budgets and finalizing these budgets uh in April of this year right and we don't start our plan year for the next year until September right so we're having to update those and do those we're making Actuarial assumptions based upon a lot of different things so we're going to talk about that in a second but that upswing is really why we're looking at our budget today is because over the course of the last you year basically we've increased significantly in those dollars and that's nothing nothing because the plan was you know added something differently or anything like that we just had an increase in utilization an
111increase in how people were utilizing the plan and that did cause a huge change we're going to talk about that in a minute though oh I get to I get to control now wow all right so looking at our plan highlights for 23 24 just to kind of give you a high level overview total funding in the plan for 23 24 school year was 55. 2 million 33.8 of that came from employer contributions at $446 per month and then the remaining 21.4 came from employee premium contributions we covered around 6,200 employees on the plan and then covered members that's lives on the plan is about 10,100 so that would be spouses and children in addition to the employees cost of medical claims ran about $50 million and then Pharmacy claims at 7.3 million and then
112our fixed costs for that catastrophic loss insurance and our third party administrator fees was around 6.9 million these are the three plans that we currently have with Blue Cross Blue Shield we have a high deductible plan and you can see the network of hospitals available to that plan and then we have two HMO plans the blue Essentials plan has a wider network of hospitals available and then our blue Premier plan Memorial Herman and St Luke's are the two providers in that plan so you saw this at the last board meeting so this is kind of where we're at year to date and this is going to kind of guide our discussion and and what we're going to need to look at doing for next year to kind of Rectify um what's happening in the current
113year March I will tell you looks very similar to February I would say it's probably in the in between January and February we ran a slight deficit of I believe 150,000 we're still waiting on a couple of invoices to come in but um nothing drastic um I do anticipate April's going to be high because there's actually five weeks of settlement of claims that are going to come in in April which is unusual just depending on how the calendar Falls so we could see um a deficit in April but um we will just kind of wait and see how that all plays out I have a question um is there any indication why this happened or is it and is it going to continue to happen or is it an Anon anonym higher utilization in the
114plan we did um look at high cost claimants which would be 50,000 or more for an individual employee and and they're almost double this year compared to where we were last year at this time um cancer muscular skeletal heart disease just lots of utilization on the plan we have not hit had a claimant that has hit the stop loss this year um the 550 but just lots of them in the 70 80 $150,000 range so so you said we had say that out again 50 you said something about 50 so if if we look at um September 23 through January of 24 we had 52 High claimants for a cost of 4.2 million that same time period from 24 to 25 we had 86 at a cost of 10.4 million Miss Garza in regards to
115the 550,000 claim Max have we do we hit that in previous years we ever had any we have yes so that's common and it's it's not well super common but yes we have used it okay we have not had to use it this year which hopefully will help us get our premiums down for next year and just so I caught that that's costing that insurance for to cover that overage or anything over that is 6.9 million that includes both that stop loss insurance and then our third party administrator fees that we pay to Blue Cross Blue Shield to administer all of our claims that's both of those are in that 6.9 thank you that's a catastrophic right yes all right so here's where it gets sad um here's our fund balance um like I said
116we had a good run 2020 we had fund balance of $7.2 million we ended 24 at 7.8 million we are projecting to have less than a half a million at the end of this year if things Trend as projected for the remainder of the year so we have enough money in the bank hopefully to cover claims for this year but we'll be going into next year with little to nothing um in terms of reserves and just to be clear this is a separate fund balance than the general fund balance just want to make sure everybody understands this money belongs to employees in the plan because so miss Garza just to going back to the United States map with the two the blue and the red lines we were looking good up until about till the
117current plan year until May of last last year we were going downward and then something and we haven't gone back down correct yeah and you know good is relative right you're still doing good versus a national Trend right what you have put in from a program perspective and everything like that has still significantly decreased your costs it's just what you've been able to maintain and your budget never growing right in a private sector for instance you're changing your budget on a regular basis right you can have those adjustments and do that as opposed to here we have have to ask for those funds and that General allotment from our district that's not increasing unless we do that here so in April you're basing your projections on the extended on the life of this current of
118this current coverage year on these last higher than average months so we so and I'll explain the projection in a few minutes uh on another slide but yeah so we take what is basically 24 months of your claims and utilize that to project out into the future now our waiting on on how we view those things can change right typically an employer of your size we're giving the most credibility to the most recent 12 months because you have such a large risk pool you're more likely to run in that fashion but because of how you all ran this year specifically with a 15% increase which was well above what we would even have you from a trend perspective we don't want to give full waiting to that so we're going to talk about that in
119a minute we did adjust our projection based upon that because we don't think that you're going to run in this exact fashion but still we have to give Credence to the claims that just happened thank you I appreciate that you're welcome oh just one more question about that map I just want to make sure I'm understanding correctly the downward Trend that started in uh September of 2022 that was because we changed plans right yes upward trend is because of more claims yeah those claims could have happened right and maybe we could have seen it up swinging those claims or like a a stronger trended line right but in 2022 before we made the change to Blue Cross Blue Shield we were projecting about an $8 million increase to the overall plan um and then with
120those we've seen and then plus the pharmacy changes in 2023 we assume basically a12 million downward swing because of it thank you you're welcome all right so this is our three plans moving from left to right the high deductible plan and then the essentials plan and the blue on top of the blue blue bar graph on each of these is showing us what the per employee per month cost is for that plan and you can see where the most of our employees are enrolled is in that blue Essentials plan which is that wider Network 3841 of our employees are in that plan and that is the plan that is performing the poorest at $1,110 per employee per month so this is going of what drives kind of our decisions in terms of plan design changes
121when we look at the poor performing plans compared to the plans that are performing better and then if we look at budget compared to actual so the blue bar is what we were budgeting for the current year to date through January of how much expenditures were going to be in each of those plans and the green bar is what we're actually seeing in terms of expenditures and the blue Essentials plan is primarily what is driving our deficit for year-to date through January so I know this was a question earlier but you know what happened right when we look at these you know we look at them uh you know typically about three months after the year is closed out so that all of the runout claims and everything can be captured we can get the
122data and we can evaluate it and this is the plan performance uh you currently that we're looking at as well right and what we are able to see is that your increase in cost drivers are all across the board all right we're looking at every sector of where your medical plan is going to hit is has an increase so your medical claims as a whole increase 42.3% all right that includes your Pharmacy claims which went up 41.6% all right and then you and this is on a per employee per month basis so remember it's not the total budget we're talking about in these segments in the inpatient claimants this is one of the places that is pushing it was less utilizers but more cost associated with it so more people are having longer stays in
123a hospital setting which is by far the most expensive thing that's going to happen to your plan additionally from an outpatient claims perspective this is where you're going to see a lot of your cancer drugs administered okay uh which doesn't run under your Pharmacy claims it run under your outpatient claims because it runs in a medical setting also just cancer services in general those type of things that are happening in an outpatient setting win up as well professional claims now this is a place that we can see increase specifically with our HMO providers because a professional claim is your primary care physician your specialty care physician and then things that are uh offered within those settings now that's okay we're all right with a professional setting increase that does go up specifically with HMO plans
124because we require people to go and see their PCP all right and that has by all accounts brought down claims because it means that people are establishing uh relationships with their doctors they're adopting healthier Lifestyles and they're having earlier detection on items and one of the problems with cancer for instance is late stage versus early stage cancer detection multiple large claimants that are in our plan right now are late stage breast cancer which means that they could have potentially found with early mammograms and ultrasounds that they did they were not able to have before or maybe they just didn't go and get those um so those are things that we're always trying to push uh from an adherence perspective are you utilizing your preventative Services to get in front of your doctor more um but
125in general those claims have increased and then lastly you know Karen mentioned it it's our high cost claim it increases and it's really our high cost claim it increases under that $550,000 threshold it seems counterintuitive that a $4 million claimant is better for your plan than a $50,000 or multiple $50,000 hits that equal up to that same amount but that's how it works because you're indemnified everything above that 550,000 rate now at the end of the time we do have to pay the piper right there will be reinsurers that do renegotiate those and look at those risks but in general you don't have any coverage between you know you're paying for all of the claims up to 550 so if you have multiple 50,000 70,000 $80,000 hits that's really where you're seeing an increase in
126your claims and that's what we've had this year unfortunately it's just where they've set um and now some may cross over that stop loss threshold or reinsurance threshold but most are sitting well under that um and it just hitting the plan in an adverse way so what you're saying is is that our uh catastrophic amount is not kicking in and this in this time frame we're we're seeing a lot more of those um under the threshold and versus in the past when we've actually had it that's why it's hurting so much it's been a few of those that that hit the threshold and go over yes this year for sure I mean I think last year we had a we had a very large stop loss um for one claimant that went over 4 million
127um and again remember that's that's dollars that we recoup back from a reimbursement standpoint from our stoploss reinsurance um where most of these specifically with a greater number of them happening in a year what was the catastrophe amount $550,000 and actuar that's where we would project you and put you all at right when we look at your overall budget we take some assumptions and then put it there and then we basically have a kind of a model that we would Set uh for our individuals additionally when we're evaluating those and we do that on a on a yearly basis it's the one thing that we take out on a yearly basis because it has to be um we have basically simulators that can help us understand how many how many and how often that you
128would run against your stop loss and if it's in your value to be at the set is or what we would call individual stop loss number that you're at benchmarking so when we're looking at you versus districts we're looking at multiple different categories the three colors that you see in front of you are the ISD contribution uh so the district contribution that you all give the employee average so the average amount of the employee cost on all of your plans so we average those out and then the family average so the average cost of the family the dependent tier coverages that you have or sorry just the family coverages that you have and we use that versus your peer District to say hey where are we fitting Within this market so the first thing is
129we look at is the employee only average and obviously this is our most important piece right we do want to make sure that we're prioritizing our employe our employees you know their families are absolutely important and we value them completely but as your employer you know our first and foremost job is to insure our employees and in this case you all are well above uh or you're well below the average you definitely outpace many of your peers as you can see Cypress Fairbanks for instance is a huge outlier for you all that's also an individual that is in TRS uh kleene Katie those are at a much uh higher rate than you all then you all fit right in within the new key Magnolia Aline area the one outlier here is Umble they are in
130a much different scenario in how they handle their uh how they handle their benefits so you I think that you all are very competitive versus the market um many uh districts that I work with utilize conro as base level on what they are looking at as far as their contributions as well specifically in the employee only which on did you say were TRS cair and which El uh cyfair I believe it's kleene Magnolia Spring Branch and I can't remember Tom yes it's on the next sorry can you tell me how is Umble doing it because they are yeah Umble substantially different we've had this conversation Umble has a different funding mechanism altogether uh they do utilize a different style plan that LE that leverages what we would call Medicare repricing um it offers some competitive
131savings but it offers a lesser Network um specifically and so while your plans uh from a cost perspective maybe a little bit higher uh we would say that they are far more competitive from that and again you know some of these are just how they a lot and they put their funding in right like they would rather invest here than other places it you know it's not always a Yen and the Yang thing um as far as how they're you how they're ending up so cheap right and we've seen many districts while their stated contribution is X go far beyond that because they're pulling from a general fund or other items and they're purposely doing this so or perhaps their insurance is not the quality that we have yes yes that that is 100% a
132concern right when we went out to Market uh multiple years ago right it's offered to be able to assume or to look look at all of these different things right we're going to evaluate as your consultant different funding mechanisms or different mechanisms for cost savings that could include a reference-based pricing plan a narrower Network plan um you know all of these things but you know what you are giving in quality and representation is is a huge deal and of value when we look at uh your plans I wonder if these same districts are also having the the same problems that we're having yeah I me this is where we're at right now but I like I said I I represent many districts in the area and they are all having very large funding deficit issues
133right and it all stems from you know the the base level fact is that if every year your trend is seven to 10% right and you can't make changes to employee contributions because you know raises are an issue and they're you know their bottom line is an issue and you can't make changes to your District contribution because you're at a funding deficit right then that interest compounds and it compounds year over year and if we don't make changes on a regular basis whether that's to the plan or to programs alongside of it or find you know more advantageous Partnerships like we did with Blue Cross and Prime then we are at a very we're at a huge disadvantage and many of these districts are dealing with that so I can see the funding um issue
134I have a quick question are they also having the experience in the high climate category that we are no uh not all districts are now some are in fact I came from another District uh uh earlier this week that we had a Str sorry late last week that we had a strategy planning meeting with and it was in the same vein they had an increase in their their high cost claim it's under their individual stop loss deductible but that's not a that's not a trend that's easily projected right and I don't think that that's just because of where we're at here so it's not necessarily something we're going to need to think about for the future just kind of a fluke year as of right now yes correct we would give a little bit of
135credence to it but it's also something that we're trying trying to add you know bring down the Delta because there is you know multiple years of of uh more advantageous experience that we feel is more indicative to how you'll run so are we attributing the past three to four years of lesser preventive visits lesser screenings maybe to the like contributing to the cause of the higher claims for this past year so I think that in general over the course of the last few years you've actually had an increase in your primary care visits only attributed to the fact that you went from a non Health maintenance organization or HMO style plan that requires a PCP or a primary care provider to refer you out to specialist you went into that mechanism in 2022 so I
136would venture to say that more people have established a relationship with their doctor because of that but there are certain items that were definitely indicative to say that people weren't getting the screenings that they needed you know specifically when we look at your your for you know four of your high cost claimants being breast cancers and the size uh or the cost of which they are at at the current point would indicate that they at a higher risk level or a stage four and this doesn't include years 20 through 21 so no yeah we you when we do our Trend level and actu assumptions right we utilize the most recent Munch that we can right in 2020 to 2024 the landscape has completely changed right and what you obviously we saw some different things in
1372020 that we can attribute to right uh but what we can say uh what we can say based upon many studies now is that that change in 2020 to 2021 and the lack of people going in is definitely to blame for a huge influx and claims in the last few years specifically with regards to late stage cancelers and things like that because people were not going to their visits at all during Co all right thanks you're welcome so additionally we're looking at you all versus your peers from a uh from a family average perspective and obviously you aside from a few uh Fort bin Umble and uh and Spring Branch you are well ahead of these other districts most TRS districts are not putting much M well they have their General allotment and that's all
138that's going to and TRS rates are definitely higher on the family rates than uh than our non-trs districts are are considered um you know Fort Bend is is a great is a great outlier I think in these areas and I think that they would say that they recognize that additionally here's your District contribution you all are one of the highest in the area um that you all are providing to your to your employees for your health plan here's a benchmarking uh just a highlight of where you all are obviously you all are very well aware of the students you know and employees de Counts from all of these organizations you can see what type of carrier they're with um you know Blue Cross Blue Shield DET Texas is prevalent now now obviously they are the
139administrator for TRS that could change in two years they are going out to Market this year for 2027 um and then you have you know the typical players atna and UHC at multiple other organizations again that outlier is humble they utilize siga and Allegiance and like I said before part of that is there is uh some uh reference based uh conversations that exist in there that give them less favorable contracts also within those contracts the signant and Allegiance contracts we have had multiple districts come out of those because they were severely underfunded and those are now turning around so um and then this gives an idea of where you are from a medical plan perspective you all fit right within the Benchmark I think three to four is very is definitely enough because you want
140to give your employees choice but not too much choice because it becomes overwhelming in another District in the area had seven plans and they are they're looking to move because it was just overwhelmingly difficult to look at and that doesn't include uh the largest District which is you know HISD that has so many plans and decisions that they're doing and that had to have been compounded when you consider they just move from Etna to United Healthcare with even more plan options um so employees have a lot of parody but at the same point it's really difficult to make decisions and when that happens we find that people don't make best decisions for themselves or their families so one of the things that we do every year like Dr n said is look at our plan
141compared to TRS and if we were going to pick one of the TRS plans um or one of our plans to compare to TRS it would be that Essentials plan which is that that broader Network which is very similar to the network that TRS provides to their employees so TRS has two plans they have a primary and a primary plus plan they're structured the same but their um premiums are are based on one plan has lower premiums but you pay a higher cost at the time of service whereas the other plan has a higher premium but you pay lower costs at the time of service so we when you look at our deductibles and out of- pocket maximums for our blue Essentials plan we fall right in the middle of those two in terms of
142coverages and then on the right hand side you can see how our premiums with that District contribution compare to the TR s active care premiums including the state's contribution of $75 so across the board we're very competitive in terms of TRS now their family coverage like Derrik alluded to is much higher than what our employees are paying um and an employee and spouse as well so um this is something that we're constantly looking at and evaluating now movement in and out of the TRS plan has to be done well in advance of of the plan year um if we were going to move to TRS we'd have to make that decision before December of the Year prior to the school year so um this is something that we're constantly evaluating and and like I said
143our plan has always been um better in terms of coverages um and like like we said we can customize our plan to fit the needs of the employees in our district I think where our plan really shines is on the pharmacy side we've got an example here if you want to go to the next slide I know it's fun so the next slide shows our um highest costing drugs in terms of utilization and this is where our plan really shines if you look at the blue the blue Premiere and the blue Essentials plan column it says um before deductible and after deductible so on a on a drug like Manjaro which is a gp1 for diabetes a participant in our plan that goes to fill a prescription for that drug would pay $260 before they
144to meet their deductible and after the deductible it would cost them $60 a month if they were on TRS Active Care primary they would be paying $1,024 a month for that prescription and then $37 a month after their deductibles met so this is where we really see the difference between plan coverages in our plan as compared to the TRS plan so this is the 2526 plan budget that we alluded to from a projection standpoint as you can see over there our stated budget in 24 and 25 is 55 million or 55.7 million uh we're projecting 65.7 million needed which would be a budget deficit of $9.9 million now the components of this item that you're going to see here at the top is right in the left hand side is your set budget this is
145you know numbers we're not applying anything else other than what we have from you what you're going to take in from a district perspective and what the employees are going to pay there and that's where we get our set budget in the middle column is uh the reforecast and like I said before we're projecting you all out well before your plan year is happening and so during the middle of the year or during in the course of the plan year we need to reforecast you to understand you know how is your projection changed right with 6 months of really poor Trend as we know we just had that changes our budget assumptions right we can't project out a change in your Trend if it goes up precipitously so we have to reforecast it just like
146you would in any uh any traditional setting right if you have offsetting budget things too much money coming in too little money coming in you have to reforecast the same thought process here it doesn't change our cost but it does give us an assumption on how we're going to end the year which is how Karen is is able to come up with the figure to know how much of the fund balance we think is going to get eaten up by the end of the year now we apply two percentages of trend here so here on the medical side as you can see we're applying 5% traditionally we are Prov we are posting 7% right now uh but we have brought it down to 5% because we feel like that is more indicative of how you
147will run moving forward based upon Actuarial assumptions and because of your poor performance in the last year right like I said we outpace Trend that's not going to happen on average so we're going to bring down our projected Trend moving forward additionally RX trend is going up at a higher rate traditionally we are using 133% or 13.5% and we brought it down to 10.8% for the very same reason we're trying to be more conservative in our approach but we do want to help give more Credence to how we've run previously all of the other items that you that you see there are medical cost and Pharmacy cost is how we think you are going to run based upon all of our assumptions so once we take these items in we reforecast them or we apply
148Trend to them that's where we think that you will run on a per employee per month basis okay then we have what's called a rebate Improvement every single year because of the way that we negotiate our Pharmacy contracts we get better rebates all right those things will come up all right so not only from a pharmacy perspective but additional rebate improvements from the plan in general all right and that's not just rebates but also just how the plan designs are working any things that we're changing right those things are going to come into play and help you all again it's all Baseline assumptions that are built into it when we take that and employee just from a claims value perspective we assume at the end of 2026 or the plan year of 2026 they would
149cost $760 roughly per month uh per employee per month from a claims value then your fixed costs come in and as Karen was mentioning that's where that $6.9 million was coming from as you can see a majority a percentage of that is coming from your Administration cost okay that's Administration cost is your Pharmacy and your medical providers okay those to negotiate the network and to administer all of our claims from an individual stop loss and an aggregate stop-loss perspective those are the two reinsurance components that we were talking about before those are the numbers that we're seeing here the one thing that you know among all the other things that could change because obviously claims aren't going to run exactly how we project right we're not Wizards uh we are uh you unless they they
150like to think that they are from a claims perspective uh but uh they are a while those claims can change the stop loss will change right we do not get that renewal until at least 5 months before and cannot get uh before the plan Clos year and cannot get competitive quotes without firm data through four months of uh through uh prior to four months to the contract term and that's just because of the risk that they're taking on and so right now we project that increase that could come down which could help our overall budget but we can't wait any longer to set the budget so obviously we have to put it in there with an assumption uh that we of what we have after we get through all of that we get to the
151total gross cost that's everything all included is about 60 5.7 million is what we're projecting now again we did not we have not shown any contribution changes as of yet we will in just a second right but as of right now if we kept the contributions exactly the same we would bring in the same $21.8 million assuming no changes obviously to enrollment things like that which brings us to Total to the district of about 43.8 million uh in cost and that would be a net change to the budget of about 9 9 million okay and again that last number the claims the change over estimate right when we change a reforecast with all of the things that change right the really the big change is in this plan year right the next plan year it's
152only going up by $2.3 million right that's trending a little bit right we're what we're really changing from a budget perspective is hey all of those upswing and claims that are happening now and we're basically trying to reforecast and solve for into the next year why does your health savings account have an aster buy it what's that for the HSA HSA seed MH uh great question I don't remember because I don't see the bottom of it my assumption is it was probably saying that we don't include it in the overall budget because of the compliance necessities of it it can't be necessarily put into a projected budget because you all are giving it and it is employee dollars that are going into it that's what I believe that it would say but I we're not
153contributing to HSA that's coming out of we are contributing to the HSA as of right now in the last year we did add a contrib uh a contribution or a seed to the HSA of $500 for every single individual that is in the plan um we did that with a purpose of trying to get people more into an advantageous plan from an enrollment perspective and to save money we did not see the migration that we were hoping for because of it um uh every employee that every employee gets a $500 seed on the HSA per year yes if they're in the high deductible plan in the hyal health plan which plan is that it is the uh HSA poo Choice plan I believe it's what it's labeled on so only that plan only that plan
154because that's the only plan that's eligible for a a health savings account okay but that didn't help us draw npe the goal of that is to draw more employees to that plan CU it performs well but it didn't really pull enough there right yeah the absolutely it wasn't enough for people to make that decision and maybe you know again you attributing factor just as Karen talked about you know if you're a diabetic and you go from a copay that's associated with your your manaro or zic and then you have to go and pick up $1,100 of a drug you know until you hit your deductible from most individuals that's a huge change and people just don't have that out of pocket dollars to be able to help them and another one of the reasons we
155provided that contribution last year is we we did a plan year change on our high deductible plan so they had a short plan year and so in order to kind of get them through that transition now all of our plan years align um to our fiscal year and so that HSA contribution kind of helped them get through that short plan year as well but are we continuing to do the 500 we are not that's one of the recommendations we're going make to confirm and and with that HSA SE there was only three Employers in the or three school districts in the area offering an HSA seed one of which Fort Bend ended theirs in uh 2024 um and so and one of which is a very low amount from Aline so that's non- taxable money
156too interest bearing correct yes all right so plan design changes for the year so these are the options that we've discussed and had approve from your benefits committee uh many of the discussions have gone into that and we're going to walk you through what we've proposed and how we've gotten to that and and what the what the impact is to the plan so first a couple plan design options that are an improvement to the plan and these improvements to the plan do come with claim savings most specifically because of the savings to the muscular skeletal population and claims that could happen to that so on the left hand side is hinge health and hinge health is a virtual uh physical therapy app all right uh I can I can speak specifically to this because I
157US hinch Health um and it is you have you meet with a physical therapist they decide your physical therapy over the video conference you put that over there and then every time you every virtual session you have your phone up it measures if you're moving and then it gives you specific instructions on what exercises and things to do and if there are other items that are related to it like a band for a resistance band for instance or things like like that they will send it to you as a part of their program now there is savings associated with this because one you're taking away people from what could potentially be a physical therapy claim and moving it to a virtual physical therapist which can save the plan money um but additionally it gives people
158access to muscular skeletal help and muscular skeletal problems are a large driver of claims not only in your plan but in many plans right um whether it's sitting ergonomically at your chair or lots of walking because you're at a huge campus right and you're having to go from one side to the other there's lots of different things that could affect your your teachers and and people like that uh where muscular skeletal has been on the rise uh for many of our districts so they're able to do this on their own time schedule Etc so that's also savings for them as far as time off from work or time and for us yes correct it these these two programs are at a huge benefit to the employee and uh and you an easy ad from a
159from an additional perspective you know we're we're assuming about a $500,000 savings to the plan from a hinge Health um and that's on the low side assumptions but that's we're trying to be conservative to not over apply you know based upon how many people will enroll and and do that and then also the costs associated to it to utilize um aosi is an is an additional Physical Therapy organization is already currently in your plan but this allows us more customization to offer this and then provides a direct uh a direct benefit within your plan to specifically go to aosi um it h you they are you physical health and wellness coordinators they do a fantastic job of connecting people um and working with them on site as well as having a virtual Med or virtual
160physical component um and it works in similar fashion to hinch health and that it's working specifically for your muscular skelet group so but it but it gives you the option of in person or virtual correct yes and so we would imply both of these so your plans would basically be enhanced yes so uh what Hing is not in person no correct hinge is fully virtual and aosi has a virtual and uh individ an inperson component okay thank you all right I'm sorry back to that we already have a rosty but you said that we would in our plan but that we could customize it so is there an idea of what that could save us uh yeah so the savings associated with aosi are about $125,000 is what we're attributing to the plan right now
161and again that's conservative um but it could potentially help us even more as we create an advantageous reason to go to aasi which we've seen you know better outcomes but also a lower costing than you know some of these other providers in a physical therapy area okay all right additionally enhancing and changing the formulary all right these are one of the decisions that has that we look at on a regular basis um it is not always implemented because there are some disruptions to employees specifically when it comes to their drugs with this change to the performance select drug list uh there are a few items that are being excluded or being moved uh because of uh ad because of the availability of other drugs in that same category so you know a couple of the
162highlights are this excludes high cost drugs with minimum value it prioritizes low cost generics or preferred brand medications it reduces the overuse of less effective or expensive drugs and it capitalizes on over-the-counter uh when therapeutic alternatives are available now we do a full disruption analysis or or formulary uh analysis when we saw this and so we did see a a change and A disruption to some employees I think about 500 on the plan um but most of those disruptions specifically with regards to this form formulary disruption came from you know very small or minimal changes on here we mentioned a few but over the counter or generic equivalents that are available that you weren't being utilized be because they were utilizing a brand named drug they can move to those with no disruption and no
163changes to their needs additionally some are as simple as changing from a pill to a capsule or a capsule to a pill the way and the mechanism that those Pharmaceuticals are getting to those people um can help that right and how those how those are created and changed and saved um so all of those Encompass I think what do we say 260 yeah we're projecting $260,000 in savings to move to a performance select drug list um and again when we provided all of this data to the employee benefits committee you know we walk through the disruption we walk through the major drivers of this disruption and and what could happen just to make sure I understand when you ran the analysis you said it could affect 500 employees to switch that list of drugs correct
164yes 500 employees have a drug that that would be impacted by this now again you the change in a formulary never means that we're removing drugs from them it means that we're changing we're changing what drugs are you that they would be pushed to and in this regard you know many of them were either on a brand name drug that had an over counter generic equivalent they could do the same thing right so it doesn't impact their day-to-day it doesn't impact their cover right but additionally a lot of them were impacted by just the mechanism of which they receive their pharmaceutical changing from a a capsule that takes longer to make cost them more to a pill okay but but of those 500 those were all able to have some other option that it didn't
165okay I just wanted to make sure yes we we we're not removing their ability to get the drugs that are not or the the type of drugs necessary it's just the change and what drug that they would use to get to that outcome I have a question about it too is that a long list of uh drugs with minimum value or is that a short list what's the number um you know I can't remember off the top of my head I think we have those numbers when we run the disruption we have it but yes it's not it's not over long from a uh from the from the one sorry uh from the less effective drugs that we're looking at it's longer on the you overthe counter and generic opportunities that are available that aren't
166being utilized cuz somebody's using a brand name drug was the committee given the list of the medications and they're okay with the I don't think the list no no not the full list of medications um and nor would we give any specific personal information on like how many of these D drugs were on it they were provided the the total amount of individuals that were impacted and then the type of impacts that would happen to the plan so what the data that we see right I'm not looking at a full list when we're valuating this right more uh more we are running an analysis to show the disruption and we're showing numbers within a specific category and that's what we showed to the uh to the committee but the committee was okay with this yes
167correct another quick oh sorry did you have one I'm sorry okay um another question on that was um I know this is maybe one of those easy Foster crystal ball type things I know you don't know who that is but um anyway uh of those 5 100 is there any idea of is there a reason why they were on the name brand or is there a reason why they weren't doing one of these other options before is there any way of knowing that not from the data that we get right there's there's no there's no data collected at the pharmacy or the doctor's office that's you know integrated to tell us like why or that it was important right um or valuable now what I can say is often times when these formulary changes do
168happen if it is a medically necessary drug there are ways to have an appeal process to get those drugs back on right and so if there is a specific or rare condition to where they can't have that or they had an adverse reaction to the over counter or you know generic medication then there are appeals process to help them move forward and continue to have their drug on the formulary thank you that was just one of my concerns because I know that there this is a out there like add medications correct there are certain ones that different people can take that others cannot and there may be an approved one but one that's not and so that's that was just a general example but I was just wondering if that was going to be an
169option for them to appeal thank you all right plan design options uh so on the left hand side of is so each of these color coded groups are our uh our three plans that we currently have with conro ISD right on the left hand side is what is currently in place and on the right hand side is what is being um is what is being proposed um well I'll start with the green first because I think that that's the simplest so your premere plan has run at a better fashion um than your Essentials plan and last year we made changes to the premier plan to enhance it to make it better and the reason that we did that is so that people would make decisions to move to the premier plan which would help with
170our pricing because the you know the Nar the network is narrower and so more likely to bring advantageous costs to the district so we wanted to make the plan better to give people the opportunity to do that we are not advocating any changes to that plan this year from the same position if the more people that we move to it is a savings decrement all right we are able to save money by people choosing the premier plan over the essentials plan now I'll go back to to the left with the high deductible Health Plan the high deductible Health Plan does run fairly effectively so we didn't want to change it too much but we did need to make some changes because it did uh it did warrant it based upon the increase in cost on
171the yearly basis now again for a high deductible Health Plan you as an individual have to meet your deductible before your benefits kick in and then once your benefits kick in then you uh or once you've met your deductible now you have co- insurance and now you have your percentages paid by your plan the reason that high deductible health plans work is because what we would call they're consumer-driven because as an employee or an individual utilizing the plan I'm more likely to make a decision that is better from a financial perspective when I have more skin in the game right if I'm on the high deductible Health Plan and I go to get an MRI and that MRI is $1,500 or is $1,500 I'm more likely to go and look for other MRI providers specifically
172that aren't in a facility that could cost me $500 right so I'm more apt to have better utilization of the plan well those costs did increase so we're not try we're not advocating a change into the annual deductible where people will have uh their benefits kick in but we are uh we are um proposing a change to the outof pocket maximum the out-of pocket maximum is the max amount of money that you would spend on your plan so after I've met my deductible once I've that deductible I pay 30% of every Bill the plan pay 70% of every Bill until I've paid 8.3 or what was uh $7,000 roughly okay now uh now that has changed and we're proposing it move up to 8,360 am I reading that correctly yes sorry I'm squinting 8,300 yes
173I'm squinting from over Harry but yes $8,300 um this will not affect a majority of individuals on the plan because most individuals will not utilize their T entire out-of- pocket maximum it will impact those that do have higher cost claims that will go up to the out-of pocket maximum um you know because they will have to cover more cost for it so it does it does affect individuals with higher bills um and more medical costs but again there is a significant savings that comes from a change like that to help with the plan and so when we're in a situation like we are right we evaluate how we can adjust the plan to potentially help us and then we apply what is basically savings decrements uh that we would see um these are harder savings
174decrements because we can assume how many people are going to hit the plan and then them you know their additional cost of about a, and uh you know $200 Additionally the family amount does go up you know these are also governed by uh by the uh by the federal government on what the high deductible Health Plans can be to be a qualified High deductible health plan from a minimum value uh perspective and uh to what people could contribute to an HSA right so they are they do have specific uh you know parameters on what you can and can offer on a high deductible health plan because you have access to put money into a high health savings account and that's taxfree money and when it becomes taxfree they have questions can you remind me one
175more time how many people are on this um High deductible plan if you go back some slides with sorry there's a lot of numbers 1100 there we are 11 1100 yeah 1100 and the middle one the essentials 38 38 3800 yes and what savings would do we anticipate with this High deductible so all together we we'll have that number right after what all of these are so we project we we bundled all of them together from a cost perspective so additionally on the HMO on the blue Essentials plan obviously this is your your your largest network from a PO provision and remember you know po means that I can go into a physician and I pay co-pay I don't pay the full cost same thought process with my Pharmaceuticals I pay you know uh I
176pay a co-pay instead of you know the full cost of my pharmaceutical up to my deductible so am I running up is this better okay uh so on the left hand side you can see our deductibles and where we're set at and on the right hand side in red is what we're proposing so it changed into the deductible to make it higher now again remember this is our highest costing plan you know it it does adversely affect how we run and it has the most money running through it obviously the most individuals that are in it as well so this will make the greatest impact to the plan increasing the deductibles here to uh buy $250 for an individual or uh you less than $2,000 for a uh for a family additionally we are recommending
177a change to the specialist copay again like I said before we had a higher we had a higher cost in the professional setting um so you know adding a little bit more money to a specialist visit which can cost you know three $400 a visit as opposed to what could be you know $125 to $200 per uh for a primary care visit additionally we're making a recommendation to move to co- Insurance 25 25% instead of 20 so moving it up 5% the change to this to an employee is that I will pay you know 5% more in my bill once I hit my deductible okay now my out-of pocket maximum Remains the Same so technically if I'm an employee that hits my outof pocket maximum my costs have not increased or changed here right the
178employees that don't hit their out of pocket maximum their employ their costs have increased right so a very sick person would not see a change in their blue Essentials plan but a potentially a person utilizing it on a regular basis to a little bit more than a regular basis would see an impact to their overall cost is there a reason why you changed it just in the high deductible plan but not the other two the out of- pocket maximum yes yes I mean a couple of reasons one from a uh from the high deductible Health Plan you know a you're spending a lot of money up front right and so from you know our Actuarial tables and what we project you we Associated a change in the out-of- pocket maximum to be more impactful to
179the plan um but also impact less people on that plan right in a better way to say that a high deductible Health Plan while it is not right for everybody it can be right for certain individuals specifically from a very low costing plan right we wanted to keep you within Benchmark with that but we didn't want to adversely impact the employees utilizing it on the bottom side that are choosing it because it is the most affordable plan option for them right so let's just take for instance you know a janitor or something like that that doesn't you know you know potentially doesn't have a ton of money to put into this right and so they're utilizing this plan as their lowest option to get into it right we didn't want to affect them onto their
180place where they could potentially get the uh money recouped back right we felt that it was better to impact less individuals within this plan on the out of- pocket maximum as opposed to the mass amount of people that are in the blue Essentials plan it felt proportionately correct to have a entry level plan design change where more people are spending money here more people are choosing this right where we're going to recoup more money but it also makes the plan more fiscally responsible because we're adding that to the first parts of an individual um to make different decisions potentially right so hey this plan costs us the most so we have to change this Theos but we also want you to think hey maybe the premiere plan is more of an option for me where
181I get co-pays but I will have to you know move to a different doctor or maybe the high deductible health plan is for me because I'll pay more up you know I'll pay more out of pocket but I'm not utilizing the plan so why would I right those are the type of decisions that we want to create in there are they able to move plans when when are they eligible only at annual enrollment and that's governed uh by your section 125 uh that that allows for you you to offer plans at a uh at a non- tax rate are we changing anything on the cost of the tele medicine no okay no that is remaining the same uh the last thing I didn't mention is in red at the very bottom is that HSA contribution
182so we are moving that to zero um you know to Karen's Point part of that was in an effort to help employees choose that plan but also because of the short plan Year all right so putting this all together um looking at the budget our current funding level is at 55.7 million and then based on the projections that Gallagher did for us um through the end of 2026 projected cost at 65.7 that $9.9 million deficit the plan designed changes that Derek talked us through starting with the uh Physical Therapy additions and all of the formulary changes in the plan design changes that saves the plan about $3.4 million so taking those things into consideration we're still looking at a deficit of $6.6 million so now going on to premiums okay this is employee contributions to
183the plan so we're going to talk a little bit about premium history here um we've been very fortunate it that our employees have not had to incur any increase in premiums over the last four years which is very unusual in the healthcare market so um while we're happy that we were able to provide that level premium and even in some cases a reduction in premium from 22 to 23 um our employees have enjoyed static premiums for the last four years and um having said earlier I know the timing of this is is not great but I just wanted to kind of give you a history of where premiums have been can you go back even further than the last four years so um in the previous say eight or six years before that so 10
184years I mean we have that information typically every on average every year the premiums increased or was that it just depends on on what's Happening and if we're changing third party administrators and there were some years they increase but yeah I remember my husband's changing more frequently than that when he was still in the district so yes the fouryear is a bit odd yes would you agree you agree I agree okay I agree yeah and then in addition to the fact that premiums have not increased over the last four years last year we actually made some plan design enhancements that made better benefits in that in that um narrow plan we decreased the co-pay and decreased the deductibles for that that plan so um in addition to premium staying static they also um enjoyed richer
185plan benefits this is the same information just in a graph format to kind of show you that levelized premiums that our employees have had over the last four years so here remember we talked about 3.4 million in plan design changes left us with a deficit of 6.6 million if we were to fully fund the plan the remaining 6.6 million through employee contribution by an increase in premium this is what it would take this is not a recommendation I'm just showing this for illustration purposes if we were to make up the $6.6 million just surely on increasing employee premiums to get the budget balanced this is what the recommended increases would be it's rough right it's confusing because it shows red because yeah you think it's a negative but yes he rough so if we were
186to do that that would generate additional premium contributions via employee premium increases of 6.3 million so it would essentially PL balance the plan this is the recommendation that we are bring going to bring to you um at the April regular board meeting we're kind of meeting at a halfway point here right so employees are going to contribute some of this and what what we're going to recommend is that we move $3.4 million of our fund balance from the general fund to help offset the remainder of the deficit for next year now this 3.4 million we will have to deal with next year in terms of if the plan runs as projected this is 3.4 million that we will have to work into next years when I say next year I mean 26 27 either plan
187design changes or if the plan runs more efficiently we will adjust accordingly but we didn't feel like it was fair to put all of this burden on the employees so we will meet them halfway um if if you guys are amable to it and so we are recommending a 6% increase on the the high deductible plan and kind of stair stepping this based on plan performance right that blue Premier plan while it's still performing well just based on increased costs we're recommending an 8% increase in premiums for that plan and then that Essentials plan which is the high wide Network where most of our employees are an 18% increase increase and hopefully like we said we will see some migration to those better performing plans based on um premiums and employees will make decisions based
188on that but um this is the recommendation that we um will bring to you and that was approved by the employee benefits committee Miss Garza yes what happened to the 7.8 million in 2024 the fund balance does that just get rolled back into we're going we're going to use all that this year so that get roll back in well it'll be gone at the end of the year because we're going to spend more this year than we're actually bringing in in terms of contributions in the previous year same amount 2023 we show a 7.8 yes I mean we've So the plan ran pretty flat for a period of years what's an average jump you said it hasn't changed in four years but prior to that it has what percentage is like an average well I
189I will say this is this is higher than what we have typically seen 6 to 8% is is pretty normal um but the reason we chose to kind of Target that Essentials plan was because that's where we're losing the most money and if we can help to migrate some employees to these better performing plans based on premiums then then hopefully it will help the plan at the end of the day it's not like we're making money off this it is what it is it's what the costs are right right I mean I'm it is what it is yeah we you you can't stop inflation and trend from you know medical perspective you know these organizations facilities nursing contracts are all coming up renegotiated and costing more money Pharmaceuticals are costing more money on a regular
190basis and all of those are being negotiated but not at enough Pace to keep up with what is basically you know a 9% inflation Trend so would you say you're seeing this across the board this I mean this is a drastic drop in in Balance I think we're going to be in the negative versus for yes I mean for you yes for you all yes you know again if we just talk about Trend over the course of you what is roughly four years right if you say that we would have assumed you run even at you know 7% let's be conservative 7% every single year right we've compounded that year over-year and you didn't make a change and we didn't drop our fund balance at all from multiple years so we've done a good job
191of making planned decisions and negotiated decisions and everything like that that's helped us and then we had a huge upswing that sucked out that but if you took over if you looked over the course of four years you would say hey that's you that's great that's great performance if we only increased at 2% every year we didn't and we actually made changes to our budget and to our contributions we probably wouldn't be in this position right but that's hard to do especially in years that you're running really well and you're saying our fund balance doesn't isn't impacted at all Miss Garza I think it would help me just for the the next meeting to see the full 10e span of how the fund balance on this fund balance sure had had been performing just sure
192miss I'm sorry and Miss carza um just so I'm clear the 6% 18% and 8% increase that's um excluding the $3.4 million fund balance that is correct contribution yes that's substantial so if if we put this all together um the the plan design changes were worth 3.4 million in savings these premium increases from employees will generate an additional 3.2 million in revenue for the plan so that leaves us with a deficit of 3.4 million that we recommending that we bring over from the general fund and that's why we wanted to lead tonight's meeting with the budget discussion to kind of show you where we were at with our fund balance and the general fund um to use some of that 18.1 million capacity that we have going into next year to help offset and we
193would need to pull 3.4 every year if we don't make any plan design changes that's why I'm saying this 3.4 million we'll need to deal with a year from now when we're looking at plan design changes for 2627 because this is going to be unless unless or premium increases or premium increases right or hopefully medical bills less right that's true depending on how forecasting yes I tend to be a half full girl is this something realistically we're going to look at again a year from now to see where absolutely we will and depending on how our stoploss um renewal comes in you know if we save some money there like Derek said they're projecting an increase just based on Trend well we we haven't gone through that process yet to negotiate the contract for that
194so we could realize some savings there as well so the 18.1 that is over the 20% minimum that we need to have in there that is correct okay no it's over the 20 right but it's slightly over oh that's above you're saying that 18 million above 18 million 18 million above the 20% yeah so 144.5 would be 20% of the budget as it stands right now now keep in mind that doesn't include AR raise so yeah so the double so yeah like we have it spin already have we done an analysis on other districts where we compete um as far as what their plan payments are yes so every year when we come to a strategy meeting we look at it so we delimit obviously the district names and information and we put it out
195there by two values so one what your paying total per employee per month and then what the value of your plans are and you on a regular basis conro is competing very well with the with the districts now again this is districts that we have within our purview right I don't have the information on you know organizations that aren't my clients right so like Umble for instance is not my client unless you want to call them and I'm happy to talk to them um but uh yeah so with this change you think we're still yes from a value perspective again that's where we look at benchmarking and we we do these value calculations you all are still well ahead of these things uh and additionally when we're comparing you versus TRS you're still well above
196the value of TRS because we put a lot of value into those uh co-pays that are associated with your Pharmacy plans where they lose a lot on their you know on their set percentages okay thank you you're welcome all right so this is general fund impact um based on the plan recommend plan design recommending and the um contribution from the general fund $3.4 million transfer if we choose to do nothing make no plan design changes no make no premium increases for our employees we would still have to move $10 million from the general fund because claims are going to come revenue is going to be what it is based on current premiums and current contributions so um like I said at the beginning this is unfortunately timing is not great but this is something we
197have to have to deal with now um and like Miss odenweller said maybe performance will be better next year and and we won't need to contribute the whole 3.4 but um what I'll probably do is if if this if you approve the recommendation in April and depending on how the rest of this plan year goes I will bring a transfer to you at the August board meeting to move the 3.4 million to kind of get a setup for next year and then depending on how the year goes we can evaluate um if more money is needed hopefully we won't need more money and this is this is assuming um that we can make it through the rest of this year with the fund balance that we have um because there there were there have been
198years you know 10 12 years ago where we were moving millions of dollars into the plan for a period of years consecutively um when does the year technically end again August 31st okay yes and and that's not an uncommon practice amongst our peer districts right like we many of our peer districts annually move millions of dollars they choose to run at a deficit knowing at the end of the year they're going to have to contribute which you know in theory they're not committing to a set contribution per employee per month they're just dealing with it at the end of the year based on how the plan performs for the year but in the last four years that hasn't been the trend that has not not for us oh not yeah not for conro but yes
199for for others for sure that there have been fluctuations and changes um you know within the last year I think I've seen one District change their District contribution um and that was Pasadena um aside from that everybody has had you different gen fund polls and things like that you know to to actively deal with their in the last four years yes yeah and I would say you know on average majority of the districts in the area are most likely running at a deficit to their plan because of the increased cost of their plan and the lack of growth in District contributions which is a natural byproduct of how we have to sit within our industry interesting thank anything else thank you for the thorough discussion and one that was done so I mean I it
200was so well done thank you very much it was very easy a lot of numbers as trusty May said earlier and it made it very easy to follow through so and I know it's not an easy conversation to have because terrible this is not but we like I said we've been fortunate that we have had the Run we have and um now it's time to deal with it and I will provide you with the 10-year fund balance history I think that gives a little substance to that discussion that part of the discussion I appreciate that everything was great thank you that is a lot of numbers so any any bit that you can add to it will help so any question questions that you have between now and the board meeting please reach out um
201because like I said that night we'll need to take action on the plan design changes for next year so thank you thank you so much Miss okay so just double- checking myself here I believe we are ready to move to Executive session the board will go into closed session pursuant to Texas government code section 5 51071 for a private consultation with the board's attorney on any and all subjects or matters authorized by the law and section 551.074 to deliberate the appointment employment evaluation reassignment duties discipline or dismissal of a public officer or employee including but not limited to the dismissal of Michael Perry any action Vote or decision of the board with regard to any matters discussed in closed session will be made when the board returns to open session the time is 8:38 the
202time is 9:40 and we are back in session and there's no action to be taken and I would entertain a motion for adjournment S do I have a second second second done