001Time is 12:36. The call special board meeting of the Kalosa Independent School District Board of Trustees to order. Today is Saturday, June 7th, 2025. And we're are meeting in the administration building boardroom at 9:20 Santa Rosa Avenue Couch, Texas. As we begin, I would like to remind everyone that this is meeting is being conducted in accordance with the Texas Open Meetings Act. Roll call here. Ashley Vasquez Juan Jose here. Let the record reflect that the quorum is present. With a corner status, we will now begin with the pledge of allegiance and prayer. Pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Go ahead. I didn't see you text. explain everything together. Amen. Amen. We'll
002now move to the consent agenda items. Dr. uh Dr. Mr. Vice President, there is no items to be pulled or discussed. I'd like to make uh I'd like to discuss item 4B, the approval of the budget amendment. My motion says, but you can. So, it's a motion to approve A and C. Mr. Check. Yeah. Second. All in favor? I B will do be discussed. Yes. Item 4. Item 4 B will be discussed in executive session. No, no, no. Uh, so Miss uh, Trusty Penny pulled out item 4 B. The 4 A and 4C have been uh, approved. So item 4 B, whatever questions you may have. Okay. Um, my first question in relation to this is what is the budget amendment for? So the budget amendment is related to an item that was previously approved
003for the driveway for Thruan Middle School. So the reason that that that um I chose to do this is uh for a couple of reasons. One um the request to have it or to be prudent to have this project done since it has already been approved to have the monies allocated for when the actual bids come in. And also the the money that was moved was moved from function 53 to that was in data services that was not being used uh to function 51 which was maintenance maintenance. Additionally there was money set aside um under the insurance and bonding code. However, there was no expenses there and so this prevented any type of issues related to dipping into the fund balance. But it was really just to be prudent and systematically uh get this project
004underway when when the timelines and the RFPs come in. If at any point there is a change of mind, then the money will then just be um left at that fund balance and move to wherever we need it. Uh with respect to this uh maintenance report that I'm looking at where it says insurance and bonding because I'm so new. Um, so this money was originally set aside, was it for district property insurance or what exactly was that money set aside for initially? There there there is there was no ledger. It was literally just money under that code without any type of explanation. Um, there was an audit process to see if there was anything pending. There was nothing that was found that was pending. And I was I I feel confident that I was pretty
005comprehensive when I looked that up. It just looks like that money was placed there perhaps in case something did occur. I I can't I can't speak to why the previous CFO did what she did, but I can be confident in saying that that money was allocated for no planned expenses or current expenses. Okay. And also because I'm new, I just want um clarification on what number we started off with as far as the budget is concerned at the beginning of the school year. So, if if I may for that, we are going to be going through the uh budget amendment and we can certainly I mean the the budget session three and we can certainly go through that. But as far as this um specific budget amendment, I'd have to go back and check that.
006At that at the point that I did this, I was just trying to honor uh previous approvals by the board and and the time frames that it may take to do any projects and that's why I chose to put in this amendment. Can somebody clarify what this plan uh or project looks like? Because I did see the supporting documents, but I'm just wondering what exactly is going on as far as the pickup area. It's being expanded in what way? This was done prior to my coming here. I know that it was I know that when I was sitting on that side, the conversations when it was board approved was to make it more efficient for the pickup and drop off area at Thruan Middle School. Oh. is for the addition of the the of the
007two lanes coming off of Cedo Casares. Uh so BA because of traffic and because well now the closure of IA and the influx of students that should be going into Tuan uh we're anticipating just more traffic now. So, I know based on the on the on the plans that I saw in board book, uh there's been some engineering work already done and it's just to add an additional two lanes uh I guess on the north side of the of of the campus, north west side of the campus, uh to alleviate some of that traffic and go into our our campus as opposed to just sitting on the side of the street on Cas that at least that's what I saw on my board. Okay. Yeah, I was just trying to make sense of that. And
008with respect to the budget being that we are in the negatives, I'm kind of uncomfortable in this budget amendment because as it is from what I understand, even though you can't give me um Dr. Sandy an accurate number, which is completely understandable, um we've began the school year from what I understand in the negatives. So with respect to going through with this project, I'm not certain from where I stand that it's a priority because it doesn't directly affect, for example, student instruction. You know, when you're looking at making a cost like that, that's just continue going to continue to put us in the negatives and it doesn't directly affect student instruction. Um, at the end of the school year, it was difficult to have to not call on substitutes because we couldn't afford substitutes. And
009it was difficult to to deal with that. And I just would advise everybody to maybe think twice about making this cost because it's a big cost and it doesn't directly affect student instruction. So at at this point, Trusty Benign, I think I think your comments are well in intention, but for this item, it's just moving this money from one function to another function as far as the approval of the actual project. I'll come back to y'all at a later time. So this specific item is just to uh have the money available in case the board does decide to move that route. Correct. Okay. That makes sense. Understood. One more question. So there are actual funds in this account that we're pulling from. There's actual funds there. Correct. So uh so in the uh insurance and
010bonding there were that's where the funds came from. And again I could not find what they were allocated for for this year or for next for the coming year. And the budget does uh does close June 30th which is why I move the money. But again to your point, if the project does not take futation, then the money is simply not used. Okay. And one more question. And then it becomes a cost savings. Any insight as to whether or not this money that was there was maybe for prepaid. No, that was that was confirmed. Okay. Thank you. You're welcome. Just I guess for uh Mr. Chairman, uh Mr. Mr. Chairman, maybe we could maybe add that to the next meeting. Maybe a schematic just to give an idea as to what it's going to be
011looking like in the new driveway. That would be helpful. Well, the schematics on the actual board book, that's how I found it. I didn't see that. Yeah, it's on there. Everything's on there. I did see them, but I just needed a little bit more clarification with that. Well, there's no further discussion. I make a motion to approve. Second. All those in favor? All in favor? I I'm opposed. We'll move on to items to be discussed and presented planning session number three. Um it's it's all it's on the PowerPoint, but you also receive a hard copy. So, so the board is aware Miss Silia Garza is uh engages as a consultant with the district to assist in the budget uh preparation process. Good afternoon um board trustees uh Dr. Ochaw. Uh this afternoon we will be
012uh reviewing the strategic plan for 2526 It has been an incredibly busy legislative session. One of the top school finance bills, House Bill 2, has been signed by the governor on June the 4th of 2025. This bill consists of 8.5 million in new state spending which includes 4.2 million billion for teachers and staff pay raises 1.2 2 billion in aotment for basic costs to assist districts with expenses like insurance, utilities, and TRS contributions. Nearly 2 billion to update special education formulas and 430 million for school safety. We will start with a basic aotment. The House and the Senate agreed upon the omni omnibus bill as outlined in red. So the bill increases the basic allotment from 6160 to 6215 which is a 55% I'm sorry $55 increase. The bill pays for the $55 of the
013basic allotment increase by allocating current law tier 2 funding increases. It also creates a new allotment for basic cost of 106 per student enroll. Uh House Bill 2 most importantly will provide uniform pay increases for classroom teachers. uh districts with enrollment of 5,000 or less, which is uh echoels, three to four year years of experience, teachers with three to four years experience will be uh required to be paid $4,000. Five or more years of experience will receive $8,000. The the it also adds a new support staff retention aotment of $45 per ADA for non-teer, non-administrative, full-time, and part-time positions. The bill does not make any provisions for zero to two year teachers. The bill also brought much needed funding to special education program. Um the bill also was made a sweeping way special education funding
014is allocated. The new allotment will be based on services provided by the district rather than the educational setting in which the student is taught. No, no new funding was allocated for the charge deficits. However, the the both bills will provide $1,000 reimbursement for special education evaluations. The Senate AL provides no additional reimbursement for evaluations on private school or homeschool students. The bill also uh increased school safety allotment by 430 million for the bienium. Uh the the amendment moves from tier one allotment in chapter subchapter D which would not generate any additional flexible fend spending in tier 2. Senate does not include any fine arts allotment. So based on these facts and based on hospital 2 there are some budget considerations. So for like I said for Echo Tulsa ISD uh the 3 to four years
015of teachers would receive 4,000 and the teachers with five or more years of experience would receive 8,000. Now for the first year it would be the implementation year of 2526 and then the following year uh we would still be required to make those those payments but on a retention or m maintaining that amount. Um it also created the allotment for basic costs. The the increased uh basic aotment cost is expected to cover the incremental benefit costs associated with teacher pay raises which would include your TRS and and and taxes etc. It also created the um support staff retention aotment. This allowment will be applied to support existing raises for eligible support staff which would be your non-teer, non-administrative, full-time and part-time positions. This would include school school counselors, school nurses, food service personnel, custodial staff,
016and other support personnel. This would not include superintendent, principles, administrators, or other executive staff, including assistant principles. The school safety allotment, any increases to this allotment will be used to offset existing budgeted costs. No new expenditures are anticipated as a result of any additional revenue. Miss Gasa, before we move on from uh SB2, I know we're going to dive into the actual budget. Uh well, f first of all, just to give my two cents, uh the state pretty much wrote the budget for us when it comes to this. I mean, they're not allowing the the school district to actually dictate where these funds are going. So, uh that's a loss. But, uh a caveat that we need to we need to look into is in order for us to get 100% of this funding, we
017have to be at the max tax rate without going out to the voters. So, let's just make sure that we are there because if we have to adopt a new tax rate, right, we're going to have to do it in order for us to maximize the funding from the state. If not, they're they they will not give us 100% of the funding if we're not at the max tax rate. So, that that's a caveat that it's tied into SB2. That's very important to look at. So, again, it's just a tax rate that's already been approved. Uh it doesn't have to go out to the voters, but I we just need to ensure that our district is at the max tax rate right now. Yes. And when would we have to do that? Excuse me. When
018would we have to do that? Well, I mean, I'm I'm assuming once we adopt the budget, we're going to have to make sure we adopt the tax rate. You don't have to adopt the tax rate till September. Yes. Does it need to be adopted till September? Now, if there is already a public notice out which maintains the tax rate the same, right? So, if we come back and decide that the tax rate needs to be lower or it if it needs to be lower, then we don't need to go back to a public hearing. But if it be if we need it to be higher, then we do need to post another public hearing and that has to be done by the end of September. I just can't remember where we're at. I don't I
019don't know where I'm going. I think we might be there already. I'm going to go to that. Okay. All right. Perfect. Okay. Thank you. Yes. So, um currently there is no summary of finance templates uh right uh right now that are out right now. uh we are waiting for those so that we can actually go in there and put in echo's data. But what we do have Mo Casey provided us a u a model and in this model uh if you see they're using the um uh average daily of attendance of 3841. Our our current attendance is at 3706. So we will need to go in there and and tweak those those numbers so that we can get a more accurate um amount of the compensation. So if you take a look at uh the
020compensation requirements below the new M revenue above current law uh with all of the uh increases and decreases we uh ended with a 3.3 million uh increase. Now out of that 3.3 1.8 8 million must be used for the compensation of of the teachers and the staff and and the remaining staff. Um it also provides 11.7% for the um the added um cost of TRS and and taxes and then the remaining amount is 1.3 million. Now that 1.3 million is not unrestricted. So there will be um they're they're actually tied to a certain allotment which will either be stay calm, sped comp. So we have to apply those increases to those specific aotments. So um once we have uh more accurate numbers based on our our um on our ADA, then we'll have we'll know
021more accurately how much we'll do for teachers. Now I did provide a a couple of models here. Um with your teachers from zero to two. Um there is no no uh provisions made for that but I modeled uh one so that uh you can see what the cost would be if we wanted to change our starting pay rate for teachers. Um, and so with just around $500, I believe was the first one, uh, to increase by pay would cost about $39,000. Uh, and so the other two are pretty much set with those amounts that they gave us on on the model. And so with the additional cost and French benefits in order to give 0 to2year teachers $500 uh it would cost $44,148. Now if we wanted to increase it to a,000 um that would
022cost the total cost would be 88,296. Now, I believe it's it it's important that we recon we rec we consider the 0ero to2 simply because we want to uh we want to recruit uh qualified teachers and we want to make sure that we're competitive with other districts. So by incrementing slightly uh and ensuring that uh we get the the the recruitment the the second one is for the uh non non-eing and non-administrative staff. Uh the the actual bill only allowed uh 154,298 for 396 employees. So when we uh that should equate to about $390 per employee if we if we wanted to spread it evenly. Uh and so uh I have those numbers there for 390 that I also have the 500 if we wanted to increase it slightly higher by 500 and that the
023cost of that would be about 90,789. uh and the cost for $1,000 would be about 356243. Now the actual increase has to be a permanent increase in their salary. Uh and so therefore the amounts would have to be based on their pay grade and and um the u midpoint at the at the midpoint so that we can compute and ensure that the scale moves along with the with the increase. So um so since there are no um uh summary of finance templates yet, districts are asked to plan a a uh conservative budget. And so uh right now some of the assumptions that u that we have for the moment will be we're budgeting at 3706. Um our actual actually came in at 3720. So we are decreasing it slightly to 3706. Uh the estimated property
024taxes uh maintenance and operation 3,92,373. Our interest in seeking 1,697,522. Our property values uh we received estimates from the Idawu County Appraisal District. Uh the district's net taxable is 536,746 381 and then the freeze adjustable taxable is 514,565,49049. Uh now the timeline for the tax rate again was we won't receive certified values until the end of July. uh and then uh TA may come back uh with um maximum compressed rate but I'm hearing that there is no additional compression that's going to be done but uh we'll get more information on on on the maximum compress rate uh for September we have uh the tax rate adoption by the end of September and then January and in January we receive the uh state controllers uh values now the proposed tax rate um I'm using the uh
025the state a template from current law to determine the INS and the uh M rate. Currently, we're we we're going to maintain the same rate from 2425 which was 1.1325 and for 2526 will be the same exact rate 1.1325 and of course the uh tax rate must be published and advertised in the newspaper prior to adoption. So, additional budget assumptions, uh, health insurance, employee contributions, employee contributions and benefits may change due to an ongoing RFP process at the moment. And so, we'll bring you those, uh, rates and premiums uh, increases uh, at at a later time. Uh, retirement contributions, the district TRS contributions will remain at 8.25% and the public education employer contribution will remain at 2% for the 2526 school year. Workers compensation and unemployment will remain the same. Construction currently no construction renovations
026ongoing. uh with that um if that materializes the um the Jun the Duran Junior High uh the campus allocations will be based on the uh ADA of 3706 and department allocations will be implemented on a zerobased budgeting and that will include finance maintenance transportation athletics fine arts child nutrition program safe schools and warehouse Now, uh, while I was reviewing the budget, we did I did run into some, uh, budget challenges and concerns. Um, we I did have, um, on the investment income, there was a a journal entry posting the maturity of a CD um that was inflating our local revenues. So when I did some research on that uh and um consulted with the um external auditor, the journal the journal entry had to be corrected uh so that the proper amounts went back into
027investments and the proper amount went into interest income and that uh entry uh was inflating revenues by about $8 million. So the next one is the um when I also was looking to see um revenues to see how we can increase local revenues when I noticed that there are no indirect cost rate proposals that were submitted for 2425 to claim indirect cost reimbursements that would increase general fund revenue. And so the indirect cost is coming from the federal grants. Once we we do our federal draws, we also have a percentage that uh we can uh use as indirect costs that go straight into our general fund. So there were no revenues uh for indirect costs this year. And on that, if I may also add, and please correct me if I'm wrong, Miss Garza, um
028it appears as if the the application was previously submitted and it was also submitted without the request for indirect cost. So that will be another it will add another year of um monies that basically were left on the table. So uh also on the uh TA the teacher incentive aotment budgets um I noticed that they were not set up for the 2425 budget for payments that are made to teachers. Uh currently we have an expenditure of about 878,000 that has been paid toward the teacher incentive allotments. Now these incentive allotments are funded through the uh state revenues that come in on a monthly basis. Yet there were no budgets set up to make the actual payments to the teachers. And so um we still have one pending payment of 124,739. Also there uh I also
029did notice that on the Utrgv Head Start Child Care Center and the mental health intern grants they had not been drawn down for the year. And so there were there was uh it was about uh 200,000 that we could have been using with our cash flow within the year. Um they should most likely be uh drawn down on a monthly or a more frequent basis. Uh but for the moment they had not been done and so we had those we already had those done right away. And Miss Carlo was that bail were we did we lose that or could we retroactive? We we went ahead and and did all the bailing. We build, right? Cuz sometimes you lose it if you don't. No, we we when when when we discovered it, it was quickly built
030uh invoiced. For for both cuz right here we're talking about two two different grants that essentially what was happening was instead of invoicing for the grant, the local money was being used. Yeah. Okay. And so, but yes, had we not discovered it, the money would have been lost um July. Yeah. Okay. Well, thank you'all. Um also on uh TRS on behalf expenditures uh I did not see any appropriations for the 2425 budget. Now this is has a near zero effect on the on the actual general ledger because the revenues match the expenditures. So there's no net effect of it but it's a requirement that we uh actually budget for them on a yearly basis. And so um there was no budget to be able to allocate these expenditures to for the 2425 school year. So
031uh TRS does I'm sorry uh region one does help us with that entry to post that entry at the end of the year but the uh allocations must be uh available in order to make those uh expenses. Uh now on the second the next one uh the pupil projections. Um I I want to point this out because this has um has a big effect on the funding that we receive uh for our state revenue. So the pupil projections are done um every bienium which is every two years. And so the uh bienium for 23 24 25 was done back in December of 2022. And so when those projections are submitted, uh we uh anticipate the uh the the number of students that we're going to have or the AD that we're going to uh most
032likely have by the in for that year. And so we always uh take a um an average of the historical of what we've had. So if we've had decreases of 2 to 3%, we we uh estimate that we're going to also be um 2 or 3% lower the following year. And so when those people projections were done, they were done way too low. And so um that caused uh not enough revenue coming in to be able to maintain the uh the actual programs or the aotments that we had going. And so and then on top of that we issue with the coming bienium which is the 25 26 26 27 those people rejections were also done December of 2024 and so those most likely have already been done and so I will have to go
033back and review those people rejections to ensure that um to see where they are but what happens is that we don't get the funding during the year we have to wait till the settle up in September. member to be able to receive whatever is due to the district. And so, um, on your handouts, I did, uh, put in the summary of finance that is currently at TEA. And you can you can see where the, um, the the ADA is much much lower than um than is actually what's coming in. I believe that for 2425 we are at 3706 but the legislative planning estimate has us at 3,242 which is way over 400 and some student FTEEs that we are not getting funding for during the year and so um I will look at those people
034projections and reach out to TA to see if there's anything that we can do to get a better estimate in u but u I believe that it may be a a little late, but I will certainly try to get that. Um, the funding doesn't technically get lost, but it does affect the cash flow for the year. And so, if we you'll you'll see most of the accounts staying in the negative because we don't have that cash flow coming in. And so, it's always best to be conservative, yes, but also to be mindful of the historical um information so that we can plan accordingly. And so also the last uh is the subhub payments. Um currently there is no checks and balances in place for this. So when we have a uh a substitute called in
035there should always be tied to an employee and then that employee should be tied to an absence. And so I did not find anywhere where there was uh any kind of checks and balances done to verify that this is the process. And so that's something also that we can ensure that we go back and and review because of the subhub payments uh I believe they allocate about 1.2 million and that is is successive in in in not not just subs but uh the absence that absences that are tied to those subs. So, um, as I keep going into, uh, estimated revenue, I'm sorry. So, we'll start with uh, estimated state aotments. So, these are the allotments that uh, we budget for on a yearly basis. Um I gave you um the the estimated allotment is
036um the the amount that TEA gives us to plan but they also have a spending requirement. The 55% for example uh state comp is 55% the allotment is 6.5 million and 3.5 million is is um the the 55% of that and then the difference goes into the general operating indirect cost. And so the only requirement they have is to spend up to that 3.5 million. So and the same for each of the state bilingual uh and the special education. Now if you notice on the sped uh we do have an aotment of 4.5 million but you see a spending uh budget of 5.2 million. That is simply because uh sped ed is is overbudgeted because of the the number of of students and the expenses that they normally have and because we have to maintain
037uh the the effort. Uh so in order for us to to pass compliance on the maintenance of effort, we must maintain the budget the same. And if we choose to increase that following year, we're we have to maintain the budget at that higher amount. And so throughout the years, the budget has been going up a little bit and so therefore the uh expenses and and and the budget must go up with it as well. So all of the others are are smaller uh allotments but yet have 100% uh expenditure on them. And so um the remaining of the amount will factor back into general fund which would be used for uh the regular program and and transportation aotment and things like that other smaller uh uh amounts that are given to the district. We also
038have our our federal planning estimates. These estimates are um provided to us from TEA. And so I gave you the comparison between last year and this year. some most of them went down a little bit. Uh so we're going to lose about 169,000 in federal grant money. Uh simply because uh this is driven by our ADA. And so as our ADA goes down, so do our uh federal grant monies. So we go into our general operating revenue and this uh this is based on current law. um not on House Bill 2 yet. And so if you notice uh I have a slight decrease to our local revenues. And this is simply because on our local revenues we had um the current taxes that are collected um at in ato county. And so what I noticed
039from last year was that um the full amount both the M side and the INS side was being budgeted under G under our our general fund. Those are have to be separated. Uh our our 199 account or our 109 fund which is our general fund has to have its own budget of what it receives under the M tax rate and then the INS which is our debt service has to have its own budget of all the revenues that it receives on on the um INS tax rate in itself. Well, what I noticed was that they were both put together in the same uh general fund amount. So what I'm doing at this point is separating those as as they should be uh so that so that the INS uh or debt service can generate enough
040money to be able to pay for that bond payment. And so uh that's what that decrease is there uh on the local revenue part of it. uh if you look on the foundation uh school program we are basing it on 3706 but there is an increase and this is this increase as as I had spoken before on the TRS on behalf payments um I had to uh allocate the actual on TRS on behalf payments on the revenue side but you're also going to see it on on the expenditure side so it's it's it's going to be a wash and so uh also on our federal revenues this is only the revenues coming in through our child nutrition program. And so for the moment, uh I'm showing a slight decrease of uh 154,000. So if we
041move into um the expenditures, you see a de uh an increase in uh our payroll costs of about 3.9 million. And that uh and that amount is attributed to currently our 199 uh expenses under 6100 are 39 million but we also have one June payroll that is still pending which is about 3.5 million and so together uh makes the um I'm sorry and then I we I'm also adding the 2.7 from the on TRS on behalf but I'm also reducing the um the salary savings that we had from the people that retired and resigned which was about $1 million. So we get to a total of 44,319,340. Now we are still uh reviewing some of the uh positions, the the count codes and some of the uh funding sources of some of the employees so
042that we can ensure that everyone is funded under the correct uh fund that they um that to ensure that if they are able to go on an aotment or on a federal grant. Uh we just want to make sure that we have everyone completely aligned to the payroll. Um it also will uh ensure that if there are any anyone else that either retires or resigns that we bring in that salary savings in into this equation. Now for the 6200s uh and the 62s 63s and 64s you'll see a reduction in the budget and that's simply because I took a 10% decrease on each of those uh on within each of those areas. Um there is a lot of um excess spending and so we did see a lot of um a lot of materials that
043were purchased. We have a lot of um um a lot of food, a lot of travel, a lot of um materials such as what can you allow me? Uh material uh food and materials materials like decorations and um things that are not technically related to instructional. And so we want to make sure that we bring we we vet all of those uh uh purchases uh moving forward so that we can ensure that only what's ne reasonable and what's necessary um is expensed. And if I may add um I feel like that's a conservative 10% across the board because you know we're really working on on on cinching that belt. But I I I feel that we'll be able to increase that if you know and everyone's been very understanding and collaborative because now with 1882
044as a result of having those um campuses that qualify everyone else also qualifies for professional development that is usually covered through um contracted services. So, we're going to be working very closely to monitor that whatever we can get and piggy back on 1882 for all the other campuses and that that should bring a significant cost savings uh for the contracted services, but we but right now we're just at a 10%. Conservative. I wanted to go 30. Yeah. for our 6500s. Uh I did notice that we had a shortage in that debt service payment uh on the general fund side. So I went ahead and increased that uh amount to uh by $30,000 so that we can have sufficient uh uh revenue to cover the uh the debt service payment. And then for 6600s uh that
045will remain the same. Um if we if I have included in the budget the three the three dis three pennies of disaster for disaster um that is already embedded in there because it was also part of last year's tax rate and so um we have reached out to uh in noa so that we can properly review that tax rate to ensure that it is where it needs to be and we are at the uh the rate to maintain. And so um this in the end all of this will totals to about 59,16,388 and this covers both the the general fund and our child nutrition program. So we we we illustrating the fund balance based on the revenues that I presented and the expenditures I presented. Um and it's important to note that this is budget
046to budget. So I'm comparing last year's budget that was approved to the budget for this year. This is not actual. So, um, last year's budget included a 2.5, I'm sorry, a $2,258,000 deficit. For this year, based on the numbers that I have uh had on my previous slides, I am propos uh I am estimating that we will have a 3,396,355 deficit. Um I also brought in uh our debt service here. Um so this is the local revenue uh that is generated by um tax collections. Uh also the portion of the state revenue that comes in which is uh 3,185,522. Uh the principal bond payment is 1,365,000. The interest is 672,78 uh plus fees of 2500 which is a total expense of 2 million 39,578. So there is an estimated uh slight um actually a million
0471.1 million in fund balance uh that may may be generated from um the uh debt service payment. We also went through some cost-saving measures. And so for the costsaving measures, uh the the program change cost savings from the resignations and requirements was 1,60,183 as of this presentation. I'm sorry, what's that number again? Uh 1,60,183. We will also uh there will also be some cost-saving measures from uh the David IVA consolidation which we do not have those numbers as of yet but we we will try to get some historical data on utilities and things like that to bring to you. Um the study uh study the efficiency of the subhub teacher teacher subpool and staff attendance um which I previously discussed. uh the hiring freeze and savings through attrition, additional ADA through our 1882 agreement with
048region one, review of district-wide overtime, review of district-wide stipens, review of retirey hires and cost of pension and TRS care search charges, uh staffing review of positions and funding sources. Plus um if you would also uh under your attachments um I gave you um fund balance history also attached to that was the summary of finance from TEA. In one of the latter um um slides there there is a $5 million um projected u settle up amount that TA has identified. I have not verified or confirmed with them that that is the entire amount that we will receive. It seems excessive. So I I rather um not I rather speak with them and ensure that that is something that is coming back into the district. Uh but that is attributed to the low uh pupil projections
049that I talked about earlier. And so, um, I just want to confirm before we actually, uh, give that number out, but it it it it looks to be about $5 million. And then I put together this slide. Um, I I this is one of my favorite slides and and I'll tell you why. Because I don't have to say much. You can just take you can look at it and you can see these are the general fund revenues and expenditures compared to enrollment. So as you can see the the fall enrollment from our 2019 to all the way to 2025 you see that downward trend. But when you look at the yellow and the red bars, which are our revenues and expenditures, they they they're consistently high even though our our our um enrollment keeps getting
050lower. And so some of it may be attributed to inflation and the cost of of of of certain supplies and and services, but for the most part, the the uh expenditures have maintained at a high volume. And so um I like showing this because it it the picture it says it all and you can read from the downward trend to where um the expenditures and the revenues maintain at the same throughout the years basically. Okay. One thing that I wanted to add and thank the board um and thank the campuses because when the tough decisions were asked about staffing patterns, everyone understood what the goal was. So the previous estimate projected of the of a decrease in in in our monies was 6 uh 6.9 million deficit versus the 3.3 million um that we're projecting
051for 2526. Um, I don't want to sound like rainbows and butterflies, but the reality is that even here we are projecting high because as Miss Gara said, you know, we're looking at the possible 5 million that might come in. We still are pending some of those monies that were never uh basically they were never filled out. They were never dropped down. So between those issues and the type of um deliberate and by design initiatives like continuing the hire freeze, like auditing that people are are funded the way they should be. Um, we are projecting that if we commit to what we're saying we're going to do, that 3 um was 3.3 uh million dollar deficit will actually decrease significantly. And so I'm just want to thank the board because we were initially looking I want
052to say I've just I'm not a real I don't like numbers but I've been like for the last 3 weeks dealing with numbers and um I had a panic attack when initially it looked like we were going to have a fund balance of 4 million. And I'm so pleased to to report that because of all the hard decisions that you made, you know, we we are at the 3 months operating expenses that we need. Um, but it's like this elastic is really stretched right now. Things things will hopefully look better once the funds from HB2 and all that comes in. But we cannot keep our eye on the prize which is saving being conservative and never losing sight that where we cut will never be at the sacrifice of students needs. And you you as
053a board member uh board collective uh trustees have made that clear and we are working and will diligently ensure that students needs and achievement will not be sacrificed with cuts that are made. Well, I I just wanted to I so to to clarify the the projection the the reduction in the projected deficit is not taking into account the 5 million and not taking into account the draw downs that we have not gotten. Exactly. Okay. All right. We don't want to count our chickens. I totally agree. That's what I was I was I was just counts before we have we want to scare you a little bit. Yeah. And then and say gets wet. Yeah. And Joe, can we put the last slide up? That I think the information here is important for everybody to understand
054here is that you look at the uh let's start off with the yellow. The yellow, if you look at the last four years, the trend obviously shows that we started off in 22 where we had more money coming in than we were spending. And then you see for the la the next three years out there, the money's increased every year as far as our revenues. But if you look at the uh red, ever since 22, the trend is upward as well. So we've got more money, but we spent more money. But yet the black shows the trend going down. So I guess this is a real nice eye opener for everybody to understand that our goal right now is right here in this 25 is that to keep the yellow where it's at, if not
055higher, but we got to work on getting that red down. We got to start to trend down. Well, to your point, Mr. I mean, if we look at this chart as a personal bank account, uh I I think that's how we should be treating this as well. I mean, I if if we're not we're spending more than we're making, then you know, we we'd be we we'd be losing our homes and losing everything else if it was personal. So, we just need to take into account when we look at our school finance as a board, uh, we also take into account looking at it in that with with that lens, you know, is just making sure that that we're being frugal, but also take into account that we can't spend more than we make. Yeah.
056I mean, that's just it's simple. And you can see the first part of it. If you look at the first three to four years or back in 1900, the red was actually trending down. So, expenses were going down. And look at the black. Slowly they were going up. Yeah. Then we reached an area where all of a sudden now we're spending way more than we're bringing in. So I think this is something we should probably see on a month-to-month basis just to give an idea of where we're at. Like a operating checkbook. Mhm. Yeah. And that's and that's exactly where kind of where I was leading to. But I'm glad you said that cuz I think that'd be a great uh slide to continue showing uh quarterly at least uh to see where we're at
057uh kind of how we we balance our checkbooks at home. I I think you know and Miss Garcia I I know it's not easy to come in here uh late nights and and do what you've done. I'm I'm I'm pleased with the thoroughess of the information that you shared with us. Uh I think you laid it out very easy for us to understand. I think that that says a lot about your experience. So I think uh you know for me I want to say thank you for providing us with this. I think it's been a while since we've gotten that clarity. Uh you didn't give us any uh rainbows. You didn't give us any balloons. cuz you didn't give us any of that. You just told us the data the way it is and how
058you see it as a answer question. So, thank you. Yeah, but on the flip side of that, it's not Chicken Little Sky ain't falling yet. Not anymore. Not anymore. No, the sky is not falling. Yeah. Yeah. It was 3 weeks ago. So, all right. Was this all just information or did we need to make a motion? No. There's no action. Yeah. the the the goal is to present it in the June board meeting uh for approval. Thank you, Miss Convene into executive session pursuant to the Texas Meetings Act, chapter 551 of the Texas Government Code. The board will meet in close session under the following provisions. Uh 551.074 for personal matters. 551.071 071 for consultation with legal counsel. Time is 1:32. The B will now move into the second session. Time is 2:12. The board
059is now reconvene in open session. For the record, no action was taken in close session. At this time, we'll proceed with any action items discussed in close session. They require a vote. I'd like to make a motion to uh accept as discussed in executive session. Well, uh, trustee, if I may, on uh 7A1 action to nonrenew the chapter 21 contracts of uh JP and if it's the advice of council that the board uh accept the administration's recommendation to move forward with the non-renewal of the chapter 21 contracts of JP and if so move second in favor all those in favor I have it do the next one. You continue. Okay. That's your recommendation. All right. So, my recommendation, uh, board of trustees, is that, um, the approval for the chief financial officer be Sylvia GarcA.
060So, move. Second. All in favor? I I I have it. Congratulations. [Applause] Welcome back, sir. Welcome back. Welcome back. Mr. Chair, members of the board, my fault. I jumped the gun. On item 7A, just the discussion and action regarding the personnel considering appointment, employment, resignation, retirement, evaluation, reassignment, duty, discipline, or dismissal of a public officer employees. The advice of council that the board accept uh the administration's recommendation as discussed in close session. So move second. All in favor? I have it. That's it. Okay. There being no more further business to discuss, I do I have a motion to adjourn this meeting. Second. All in favor? All in favor?