001Call this meeting to order. Please stand for the pledge of >> allegiance to the flag of the United States of America and to the republic for it standalice for all. >> Approval of the the agenda. >> Make a motion to approve the agenda. Second it. >> Been moved and seconded to approve the agenda. All those in favor signify by saying I. I. >> I. Motion carries. We're going to recess the regular meeting and move into an executive session pursuant to RCW 42301G um with the superintendent evaluation. It is to evaluate the qualification of an applicant for the public employment or to review the performance of a public employee. However, subject to RCW423144. Discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in
002a meeting open to the public. When a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees or discharging or disciplining employee, that action shall be taken in a meeting open to the public. And we are going to start with 15 minutes. So we'll tenatively resume at 6:17. All right, we will call this meeting the regular meeting back to order. Uh, moving on to action items at 2526 superintendent year-end evaluation. I move to approve the 2526 superintendent year-end evaluation. >> I'll second. It's been moved and seconded. All those in favor signify by saying I. >> I. I. Motion carries. Next item is the third amendment to the employment contract between Proser School District number 116 and Superintendent Kim Casey. And I will move to approve the
003third amendment of to the employment contract between Proer School District and Kim Casey. I'll >> second. It's been moved and seconded to approve the third amendment. All those in favor signify by saying I. >> I. I. >> Motion carries. Uh moving on to discussion items. The 2627 budget. Drew, you're up. >> Perfect. Can you guys hear me? Okay. >> Yep. >> Okay. share my screen in here. Get going. So, I've got a presentation for you guys tonight. As always, feel please feel free to ask questions as we go and stop me at any time. So, um, last last month we had a meeting around the enrollment and revenues side of the budget. And so, tonight's going to be about a historical review, kind of how did we get to the position we're in financially and
004then looking at the expense side of the house for the budget as well for 2627. Um, we're going to cover quite a bit of ground tonight. I'm going to kind of bounce around between the PowerPoint and a few other areas um that I have that I just think are very informative for the board. Um, and so we'll kind of jump into this. So our agenda for tonight, so we're going to do the historical review first and then we'll talk about the 2526 budget extension reasoning. Um, I know that's something we talked about a little bit last time, but I think it's good to touch on again. We'll look at our 2627 overall expenses. We'll look at them as a percentage of revenue by category. And then we're going to look at 2627 savings, what we've
005done so far, as well as some other potential items for 2627 and going into 2728. So to start, I've got some metrics here, and these go back to the 2017 2018 school year. And so this first one is your days cash on hand. And so this looks at how many days can the district operate without any new revenue. Um the state average at this point is 32 days. What the auditor's office and the OSPI recommendation is is 60 to 90 days. And so as a state, we're not even hitting that. Um a lot of our some of our smaller districts are way above, but districts your size are not hitting it. I mean, we clearly see that the state average is 32. And so looking at Proer School District, you guys have been right between
00635 and now you're down to five. And so this turn has really started with the 202122 school year because 2020 2021 you were at 39 and we've slowly seen this decline and then the last two years we've really seen it hit hard. Um there's lots of different factors of why. Some of this is legislative impact. Some of this is the COVID ledge gap. We, you know, that's a lot of money that came into districts and then now it's gone. Um, and some, some districts, I'm not saying Proster specifically, hired staff with that money and then didn't have new money to carry those staff forward, but they did anyway. And so I think it's interesting to kind of see this trend. And this kind of with the other graphs I'm going to show you, it kind
007of mirrors why the picture is what it is. Um, and so any questions on days cash on hand. Okay, this next one is your expenditure to revenue ratio. So this looks at how much of your revenues are you spending each year. And as we can see consistently, the district's spending 100% or more of their revenue. So, you're consistently spending more than you're bringing in, which is also a reason why you're in the financial position you're in. And so, we only had 2020 2021 is kind of an outlier there with 95%, but every other one has been over 100%. Any questions? >> Yours doesn't. >> Really? It's what I saw. It's what I saw on mobile. Are you guys on a laptop? >> That's why this is why it's like it doesn't look right. >> I'll
008just look at yours. >> Okay. >> Y. >> And if you have any questions on numbers, let me know and I can I can read them off if I need to as well. So, >> okay. So the next one we have is our unrestricted fund balance to revenues. And so this looks at how much of your revenues are sitting in reserves at this point. And as you can see, we again are seeing a big downward trend to where we don't have anything in reserve. And so you were as high as 12% 5 years ago, but now we're down to negative. So we don't really have anything as a backup at this point. So that's why we got to try to build this back up over time. And then next we just have the overall district
009fund balance. So again we were at 14.6% in 2020 2021 and we ended 2425 with a 22% reserve. Any questions on the historical side here? Okay. >> Um you you mentioned that obviously the the co money was was big across I mean everywhere but from my understanding hopefully I'm not wrong but proer school district did not do a bunch of hiring with that money. >> Okay. So, I mean, when when that money went away, I mean, I I understand what you're saying, like we we had all this money, but then it went away, but we didn't hire staff with that money. >> So, for you guys, I think it's in your Mox side of the house mainly. I think you did give some staff raises over what the state was funding you, but I I
010have some data on the MOC side that I think is very interesting that we'll kind of get into here. Um, and I think that'll kind of explain some of this as well. I just want to say we're on that >> and then King stopped it and now it's back similar downward slope that it was. >> Yeah, we're seeing that with a lot of districts too with their trends. It's it's not a proer specific item, but it is something that we need to be aware of. So this next slide, um, and this is not to poke at any one union or anything specific. These are just items that I was going through contracts going, okay, these are either things that I haven't seen at other districts, um, or they're kind of expensive items that I think
011at the time were put in with good intention, but now with given the financial situation, we just got to kind of look at how much are they costing. and I and I know they were negotiated and all that, but um just some things for the board to kind of be aware of. So, your administrators all get a sub sipon, so they help pay for their SE bill each month, the individual employee side. Um and that's cost in the district about $31,000. And then we've got district-wide VIA. Um the different unions have different amounts. Um but that's cost in the district about $885,000 a year. And so that's significantly higher than most districts. Um something to consider. Um longevity stipens. I think longevity is great because you want to keep people in your districts, but it
012is just something to kind of think about that it does cost money. Um principal contract. So >> Drew, sorry to interrupt you. Are all of these things that are not typical in other districts? I would say the SE stipens um viva amounts are higher than I've seen in other districts. Doesn't mean viva is not unusual by any means. I think it's just the amount of vibba. Um principal the eval principal eval piece is unique. I haven't seen that anywhere else. Um the vacation stipens for your building secretaries is very unique. I've that's different as well. Um, I wouldn't say all this is unique, though. Um, and so these are items that are just kind of costing the district quite a bit of money. I think there's been some ways to mitigate some of this over
013the years, but it is something when we look at the future, like can we go to the table and get some of these things discussed? Um, I think I think it needs to happen. Um because the especially the things that are unique to Proser and don't happen anywhere else. I think like I said they were put in with good intention but at some point they're costing the district too much money. We have to kind of find a way to to mitigate those. >> So I have a couple questions related to this slide. um you know, if we do go into binding conditions, can we um can we go back in can we research if we can go back in and renegotiate prior to um prior to a contract expiring? I don't know that. >> I
014don't know because I've never really read a binding condition document. When I talk to neighboring districts that have been in binding conditions or people in my peer group, they talk about that option, but I don't know the fine print of that. I've not seen a binding condition letter. And I've I've only heard of one district actually going back to the table because they truly could not afford anything in any of their contracts. And that's a lot of work because you have to build back that trust then of your union groups too because you know you were bargaining in good faith at the time. Um but it I think it was Northshore School District. They went back and renegotiated all their contracts and it took a lot of time. Um but I don't think that it
015I think you can do it. I think it's it's a lot of work but it might be worth you know the time and effort on that too. It's something to consider. >> Yeah. And I think part of my comment, and I I've got others on other slides, is I don't know if there's any option that's not on the table at this point, at least in my my thought. I mean, we've got to look at all basically everything, you know, to get us back, you know, back back right. I think it's worth at least exploring. Whether we do it or not a whole another story, but I think every option should be should be available certainly and given depending on where OSPI feels the situation falls on the binding condition scale, there is a step where
016they could form a financial oversight committee which would include an ESD rep from ESD123, another ESD rep from a different ESD, and two OSPI members. This is what we have out at Prescott right now. And they oversee the financials. They don't tell the board what decisions to make, but they can give suggestions to the superintendent and business manager of things to look at. Um, and depending on the severity of what they feel the financial situation is, they may put that committee together and that that's the second step in binding conditions. So, okay. I think you know my other comment to this slide and it doesn't really relate to you Drew but maybe more of the board and um and Kim is you know we don't really have a negotiating type policy within you know our
017district and I'm wondering if you know if we were to develop some type of u negotiation policy that reflects you know anytime we we bargain with a group that there is a profit you know, or not a profit, it's a >> cost ratio. >> You know, like a cost ratio, cost expense analysis. You know, what what is it going to cost? How is it going to fluctuate? You know, our budget, what does it do to the budget, whether good or bad or indifferent. Um, but I think some of those pieces have been partly missed on our part in maybe previous bargains. Um, but I think if we look, if we want to fix this for now and into the future, I think we've got to set some controls around, you know, what a board sees,
018how they see it, and and get more detail on how it affects our budget, not only in the first year, but in the preceding, you know, three, four, five, whatever the term may be, so that we can actually look at it long term and how, you know, each individual line item may or may not affect, you know, the financials of the district. Certainly. And I've seen with sometimes with the multi-year negotiations, what gets missed, you know, maybe the business manager level or other things is that second year, they don't step everybody up again. And so they just put the increase on, but they don't actually have the step increase as well. And that, you know, a lot of places that's two to 3% per employee. And so it adds up very quickly. And if that
019gets missed, certainly affects the district. So, >> so I think if you know my question to the board is, you know, if you guys are supportive of it, I'd like to move forward to have something in place, you know, by September if we could. >> I think we should look into it. I think we'll probably have to get Sean to review it, but I don't for sure. >> I don't know what's required, >> right? Right. >> Yeah. >> I don't know what's allowed when it comes to negotiating. >> I think that the more we can be involved and aware, the better, >> right? >> So, can I say that back so I can make my notes? >> Yep. So looking for a possible some form of policy that shows the impact short and long term
020of a negotiation and that is reviewed and done before a contract is approved by the district. >> Correct. I mean, I think we should see that prior to, you know, coming to to an agenda item, >> right? Yeah. >> Okay. Anything else on that before we move on? Okay. I'm going to jump out here to a website that the ESDs have built um with some data. And I know it's a little small, so I probably have to read some of the numbers. It's a little I can't really blow it up on here. Let's see if that works just a little bit. Is that better? >> So, can you kind Not at all. Can you kind of show us where we are, what you're looking at? Giving you give us the columns and >> Yeah, certainly.
021So, to start here, we're going to kind of look at some areas of where districts are under underfunded specifically you guys. And so, we're going to kind of look at what the per pupil cost is that you're shorted right now. So there's a lot of talk around unfunded mandates and just a shortfall of funding from the legislature and education >> and then we're going to go into the material supplies and operating costs. So >> Drew, is this a So the green represents the revenue that's coming into the district and the blue is representing the expenditure side. And I've moved the thing on here. I can't seem to move the black square. >> Is this a live like an online only? >> Is there a way maybe to get screenshots and >> Oh, yeah. I can
022send you guys a link to this too so you guys can see it. Yep. >> That's what I was Is this like a publicly available website too so anyone could go on here and see it? >> Certainly. Yep. >> Yeah. >> And so >> if we could get that in the minutes that would be great. >> Yep. I can I can do that. So to start, we're going to look at your transportation revenue. And so for 2223, you guys were $100,000 short. You guys spent more than you were funded. The next year, you guys actually were in the black for transportation. You guys spent 162,000 less. And then 2425, you were 68,000 over. So that equates to about $29 short per pupil. Um, and so we look at this at a per pupil model because
023when the state funds us, they fund us per pupil. And so we kind of talk a lot with the legislators of, okay, we need x amount per pupil to be able to cover our costs. And so looking at special ed, and this is pretty typical around most districts, is you were short to the and the 2526, let me clarify, is your budget amount. So that's not actuals. So, just keep that in mind. Uh, so 2223 and 2324 for special education, you guys did spend over what you refunded. And then last year, you were under. And I don't think this is a true picture because we had some bills that didn't get paid until September, October that should have gone back to the 24th 25 school year, but they didn't. They stuck into 2526. And so,
024it was a timing of when the payment happened. And so they didn't get captured into here. So it actually looks like you guys didn't spend 300,000, but really the picture is is not that you guys spent more than that. I don't think it was 300,000 more, but it was probably a h 100,000 more. So something to keep in mind. And then the area where you get hit the hardest >> real quick. All right. But uh if it maybe I'm I'm wrong, but if you acrew the expense in one fiscal year, how do you how are we paying for it in the next fiscal year? How come we can't push it back into So with year end, we had to push it at year end time. It didn't get done because we didn't know it needed
025to go back. There were things that didn't get moved back. back and then when we were closing the books, we didn't know they needed to go back. Um, some of it I think was done due to your cash flow situation. Bills were held off on paying and so they didn't get paid till later and so I think it was just with turnover and staff and everything. That's why they stuck into the 25 26 school year. >> So I'm assuming if we look at this school year, even though it's not closed yet, we're going to spend probably well over our a lotment because we paid for it basically. >> Yep. You paid two years worth of service in in this fiscal year. >> Yep. And so for special education, we actually just filed for safety net.
026So they if you have high cost kids, you can get some reimbursement on those kids. I think that we started out about 140,000 for reimbursement that you may be able to get. Um it could be more depending on what expenses come through the rest of the year. Um, and so working with Dr. Allen, we've been working on submitting that and trying to make sure that's that's dialed in. So, >> thank you. Y and then the last piece on on here is your material supplies and operating costs. And so, this is where districts are really really hurting at this point and our legislators are not hearing us. They have other priorities at this point, but clearly we could see there's an issue because this last year we spent $2 million more on MSOC dollars than what
027we received. And then so that equates to $154 a pupil more than what we received. >> And how much is that is insurance? >> Um, so insurance, good question. So insurance, I did an analysis on your insurance bill. In the last five years, it's increased 97%. >> Right? And if you look at the >> MOS as a whole, and that's, you know, insurance is one little piece of MOC, >> okay? >> And your increase that they give you, the whole MOC increase that this that you've gotten is 15%. So clearly a disconnect between the legislators and what they think that they're fully funding basic education at this point. Thank you, >> Drew. Just for the public's awareness, what are some examples of things that are in the MSOC budget? >> Yeah, so that's like your
028supplies, your curriculum. Um, we have insurance costs. You've got service contracts, power bill. Yeah, that's a good question. >> Fuel. Yeah, that keeps going up on us, too. >> I I just used some washing the windows. Um, the exterminator. Yep. the elevator operation, the all of those kinds of things. And you said in five years the amount they've given us has only increased 15%. >> 15% and insurance alone has gone up 97% for you. >> I I I'm sorry. Go ahead. >> I say I think I think everywhere everyone's insurance going up. I think in addition to that, you know, five years ago, you know, we only had one old high school to make sure. So we've got >> Yep. this art this building a new building power for both utilities for both remodeled buildings
029which are more expensive to ensure and I don't know that those expenses were process and thought through and built into the budget. So, >> yeah, look at it. >> We're really glad you brought that up because >> um I Sean and I have talked about it once. We call it your child comes to you and says, "I want to buy a car." And then they have to pay the insurance and now they bought a pickup that has bigger tires and they cost more money. Right. So, we book built these big beautiful buildings and it was kind of like what Drew says um and you mentioned it. What's the long-term fiscal impact? Well, we now have a building that's three stories tall and it talks $20,000 to wash the windows. I mean, I'm just like, let
030alone the HVAC and we had Red Cross here because of the fires and we were so glad we could help out. But we have a natural gas generator that we didn't have before and the upkeep on those those pieces is a big part. If you look at the MSOC money like years ago, it was closer, not necessarily because the state was even keeping up then, but the overall upkeep for our building. So Andy and I talked, oh, I don't know, in the last 5, seven, 10 days about the number of custodial staff we needed when buildings were a certain size and now we have buildings that are way bigger, right? And so those costs go up. And so when you build a new building, did we plan for those additional costs, not just the paying
031for the cost of building? >> Yeah. Insurance went up 210,000 from 2223 to 2324. So huge amount. Okay. And then on here, I want to jump to substitute costs. So, another thing that is just not funded the way it needs to be. And so, you get for each funded teacher that you or staff member that you have CLA that's certified, you don't get classified subs money at all, you only get $151 at four days of that per teach or per certified member. So, it's not very much. And so we know that, you know, employees have more leave than that. They're entitled to take it. And so there is a cost to the district. And so looking at 2425, you guys received about $70,000, but the cost of your subs was $480,000. So this is another
032area that we're trying to go to the ledge this year and ask for more money. The $151 has been the same for over 10 years. It's almost >> 24. >> What's that? >> 2024. Is that what you said? That >> Yep. 2425. Yep. >> And so at some point they got to step up and do something. And this actually does not include your sped program. It doesn't include any lap funded folks, bilingual or highcap folks that take leave. So it's actually probably a little greater than this. So Drew and I decided how we were going to try and explain this. I mean, it's very evident on the numbers, but I every employee is entitled to 12 sick days. And the state doesn't even give us at $151 12 days. They give us 4 days. The
033other thing and and I'm not going to get on a soap box, but when we have family medical leave or paid family medical leave that the employee gets the right and and and that might be me someday, but we as the district still pay the substitute. And that means whether it's 12 weeks, 16 weeks, periodic, whatever, we that all of that cost for those substitutes are in there. The other key piece, and we're going to see it in a graph in a minute, we get zero for classified employee substitute, a bus driver. We don't get any money when that bus driver can't come to work today. And they the bus driver gets paid. Well, anybody. I shouldn't even use the word. The employee gets paid and we have to pay the substitute who's driving that
034route. So, we're double paying on that time. And there's no reimbursement for the state in planning for that substitute time. And anybody who's listening, everybody's entitled to your time. Not saying you shouldn't take your time. We're just trying to get people the the um if you see this is AESD that's the website. We're trying to get the legislators to understand we need to protect our employees those longevity imposes. We want people to stick around but we're double paying on those days. >> Yeah. >> Do you know like from the legislature to not fund more than four days? I I don't know. >> Well, but I mean, I guess they're broke now, but they haven't always been broke, right? And this has always been the way they did it. So, >> but I don't know. I
035mean, at some point, they got to increase the rate because I think we I said this last time, we're almost not even hitting minimum wage at that point. So, at some point, they need to increase it. >> Um, and then the other thing to keep in mind is when substitutes work enough, they get benefits and there's not really money coming in for that. What was that threshold again? >> Uh >> 630 hours. >> 630 hours. >> Any other questions on this stuff before I jump back into the PowerPoint? >> So Drew, you had to say so deficit for transportation at $29 per student. Is that correct? Yep. >> What was the sped number per student? >> Let me go back here. So last year you actually were ahead on the sped side. Oops, I didn't
036jump. But in prior years 23 24 you were about $27 a student short and then you were $241 short the year before. when you get the link website. What's kind of interesting is you can look at any school district. You can look at similarsized districts. You can look at ones um he'll show you in a little bit our salary number, our percentage, and you can compare that to other districts. So, you can do all of that in there. And what you'll find is we have our MSOC is our biggest what do you want to say? True. our biggest area or our biggest >> deficit area. >> Certainly, >> but you can see like we talk about our salaries and so forth and we're not that much different than a lot of districts our size is
037what I'm trying to say, right? Like there's a lot of problems, but I get the whole idea also is everyone who's listening and listens to it later and we'll put this in the minutes everybody. We will put this link in the minutes, but there are way worse than us, but they had a little more reserve. So, they're going to be in our situation in December or our situation next April or our situation in 18 months it because it's all going in that direction. >> Yeah. So, this I just jumped back to the state summary because you can look at that. So for 2425 the state MSOC deficit was $199 million. So something to keep in mind. I don't know how to ask this question. Um, and whether or not it needs an answer, but if
038you have, you know, if our classified staff, we we don't get anything for subs, but we do need people to, you know, to fill those positions. How do we manage that? Like, how how how can you one, how do you budget for it? I mean, that's it's got to be close to impossible because you don't know what's going to happen. But but then again, how do you pay for it? >> Yeah, certainly it comes out of levy. It comes out of local dollars that come in. I mean, it's your LEA dollars that come in. So, unfortunately, >> going down, >> which are going down, too. Yeah. Because, and that's something to be aware for 2728. If the legislators don't do anything to that, you're going to lose $750,000. Is that reflected in a lot of
039the numbers you're putting in just as a >> Well, for next year, we're So, when we do the four-year projection, that will be factored in there. Yes. >> Yep. >> Thank you. >> Yep. Okay. I'm going to jump back to the PowerPoint now. >> Peace. The means that we're getting is constantly moving. And so back to your question, we have to really budget for all 12 sick days. >> Right. >> We can't budget for eight because if one person does the ninth, then we're out of budget. Does that make sense? And those are things that we're working. And so you'll see these in these next few slides right through where we're talking about that. >> Certainly. And so now I'm going to jump to kind of talking about the budget extension. I know Jason asked
040the question last time, what if I don't approve the budget extension at whatever, you know, amount, maybe it's less. Well, then we Sean and I better get on the phone and start talking to vendors and seeing if they'll do a payment plan or something. Um, I hope that it doesn't come to that, but I it's a valid question on your end, too. So, I wanted to kind of give you guys some reasoning of what's happened this year and things to consider of why the extension's needed. So the first one is there's two programs that received nowhere near enough money based on historical trends of spending not even just raining in the budget. I mean one is food services you guys spent and we've done the analysis they were $600,000 short in their budget for food
041this year and then the other was it was short at about $250,000 of just their basic needs. That's not even I know Sean's put stuff on hold um and kind of move things down the line in terms of when spending. So those are two big things. Another thing is three of your five building budgets were overspent this year because again we had some items that didn't get moved back from 25 26 to 24 25. One of them being one a good example is at Hel Middle School. There was a order of deaths for a teacher $14,000. It didn't get moved back and now it's sitting in the school year. Well, when their budget for the year is only, you know, 25 to 30 grand, it gets eaten up pretty quick. And so, I really want
042to applaud the buildings because they've done a great job of cutting down and really trimming their spending down to try to stay as close to their budget as possible. But some of these items on these on the buildings, they've just done unavoidable. So if you take those out, they really did truly stay within their spending limit. >> So I want to make sure we we understand what's happening. Remember you we asked about the approval piece and sped and some other pieces. The approval process was not done correctly. And so when we say a building was over spent on the money we gave them for 2526, they did not overspend that budget. The mathemat, excuse me, the accounting error caused that to look that way. So I want to make that really clear. The buildings did
043not overspend the budget we gave them. >> And so we've put some things in place as we move towards year end this year on how to capture those expenses of what needs to get moved back. Um, it's really easy with your grant claims of what needs to be moved back because the money will for that also goes back with it, but your non-grant items, it's a little more tricky. So, I think we put some things in place so that they're on separate vouchers um so that we can just move the whole voucher back. I mean, we we put some safeguards in place so that it gets captured this year because we don't want the same thing to happen again next year. >> Can you maybe explain that just a little bit more? like how how
044would you set do a separate voucher make sure it triggers something. >> Yeah. So we would probably label it a little different. We could put like in the title of it acrruel 25 26 number one or number two whatever it needs to be but there needs to be a labeling mechanism so that you can know that it has to go back it cannot get missed. So, even though we're doing a lot of technology, this year's, if you came to my office and look what I approve, the little pink piece of paper that has my signature on it, everything pink is related to 2526. And when we move to 2627, it's a neon green. That sounds crazy, but if in August something's supposed to go to 2627, not only is it going to have a different
045label, but it's going to have a different color on. So if we were to order something in August that's 2425 expenditure it's going to be on So, not I I'm not saying that we're always going to stay, but it's a way to visually go this one has to be moved forward or this one has to be moved back because it is possible. >> Who decides that like how does that decision? >> Typically, we look at the the ordering date. Okay. >> If the order date or the expense date is August or before, it should go back. >> If we get if you order items, it depends on when it comes in. If it's in hand before September 1, it should go back. And then if it's after September 1, it should go to the new
046year. >> Okay. >> So, there's some rules in the accounting manual that we're supposed to vault. >> And then another item is athletic expenses. So, I think it was the pole vault. It's about $45,000 that originally was told that they had money in their general fund athletics account and to order it and then it got costed to ASB last August or whatever it was. Whoops, jumped. And then we look at it and it's like, oh well that should have really been general fund because it was approved to be in general fund. The ASB account didn't have enough money to cover it anyway. the ASB accounts upside down. So then we fix that this year as well. So that's $45,000 worth of expenditures that we didn't plan on having in the general fund that now are
047sitting in the general fund for this year too. Um we talked we've talked a lot about the June SB payment that was missed and that's now being paid off. Um DRS corrections from other years. Kim's now a DRS expert. Um, and that was about $20,000 worth of corrections going back to about 2022, I believe. And so >> so an example of that um for examp um Sue sends me an email says we got to look at February 2026. six. Something's not in balance. Within 24 hours, Raul and I are on the phone and we solved it and it was like $36. That has to be done every single time, right? And so, not that from 2022 if it was $36 every month doesn't probably equal 20,000, but they go up and they go down and
048it has to be balanced every single time. And so now, like Drew says, I become a DRS expert, but we now balance those every single month and fix every correction. >> Yeah. So they they do like a request for employer information. So if an employee has a spike in earnings, like maybe they have a cash out or something and it looks higher than normal, normally DRS will flag it and say, "Okay, what's the reasoning?" And so you have to kind of put the reasoning in there. These kept building up and some of these had dollar amounts with them and because they didn't get fixed there then was interest charged on them as well. And so it may be $36 here, $75 here, but it does add up very quickly with the interest too. So, those
049are some things that we've talked many times about, but those are checks and balances that are in place now as part of the and I know it sounds silly, the pink piece of paper versus the green piece of paper, but we're you're asking like how can we make sure the approvals are done? How do we know the DRS is balanced? There's two signatures now on the DRS statement, not just one. >> Yep. And then the last thing I have on here is employee turnover. you guys have had a ton of turnover at the district office alone, let alone in the district. And so that's required, you know, my services, my team services, you've had ESD 171 who did some payroll services. And with th without those, I mean, that's a savings this next year, uh,
050because you won't need as much support. Um, and so there's things that unfortunately you there's years like that where you can't really plan for it, but it is something that you have to pay for at times. So, any questions on this slide? >> Drew, you'd mentioned a couple times that we purchased the second bus and shouldn't have. Is that should that be in this >> well >> chunk too or where would that fall >> that Well, it depending on I mean this I'm more tuck looking at your general fund things. >> So, I guess it could be up there as an item that would fall for transportation vehicle fund, but I was really kind of focusing on the general fund here. Okay. And then next we're going to kind of talk about our savings list.
051And so I didn't provide you guys with the staffing savings. It's a little tricky with positions and you want to make sure you don't have names and those kind of things. So to kind of protect those folks who were laid off and and everything else. So overall, we've we've saved about 1.9 million in staff savings for next year between attrition and non-renewals. And then on the accounts payable side, so our bills side, we've saved about 411,000. And I'm going to jump here and show you kind of what makes up that 411,000. Let's blow this a little bit. >> Can you do one more blow up? >> Yep. >> Just kind of go through it. So we've switched from I Ready to Link. um Front Line to Red Rover, which in the long term will save
052you a lot of money. So, one thing that I like about Red Rover compared to Frontline is your teachers or whoever's kind of a part-time user, their license cost is cheaper than a full-time user. And Frontline, they charge you the same license cost whether they use it once a month or every day. So, um we were exterminating. We've cut that contract by $3,000. They're not going to do the greenhouse that no longer is in existence. Um, and then some copier savings. There's arc materials that Diana's kind of cut back on some of what she's going to order for next year. Um, we've talked about not doing the gym floors. That's an expensive item, $26,000. Sean has a few tech items here. So, Cybernet, Swank, and then Office 365. Um, the teachers agreed to give up
053their printer, Inc. cartridge, um, which is about a $40,000 savings. And then we've got communities in schools. That contract is going to go away. That was partially paid out of LAP funds and partially paid out of basic ed. Um, we've cut the Apollo contract by $1,000, but we're also getting the lower hourly rate now on service. So hopefully over time we'll kind of see those savings. It was kind of hard to quantify what that's going to be based on how many hours >> we went to a contracted fund for a state bid fund. I think Andy, do you remember from 181 to 153 or something, right? Say again. >> 185. >> Yeah. Uh we've cut all basic ed and district travel. Um we've also kind of tightened up ACE hardware and who can actually sign
054off on items and that should hopefully help reduce the number of trips that are happening. Um food savings, we've cut the food service budget by $50,000 already. Um and then the next one was something that Red Rover does, so we were able to eliminate that. Um, ATS Inland, we were able to get that down three grand a quarter. Um, and then aptagy, that's the website, able to take that from 13,000 to 6,500 a year. And then I have the ESD uh fiscal services contract. Um, and then the ESD 171 payroll contract as well. And so depending on support we need, I didn't put the full ESD service contract in there potentially if we needed to do kind of like a mentoring or or something like that, too. So, um I didn't put the full amount,
055but that roughly 411,000 in savings and we're we're still looking for more. So, any questions on anything that we've trimmed? >> I I'm We have three principles here. So, you said we cut cartridges. Like I can you expand on that because I'm assuming they're still going to have to make copies of some sort. Yeah. So that's more funny than a question. >> Correct me if I'm wrong, kid, but that's the printer in their physical classroom. Correct. >> Man, I don't know how many years ago there was negotiating contract. Each teacher got a printer in their classroom. >> Okay. >> And so, and I I don't know when that was before me. >> That started when we first started. That was theou. It was interesting because the agreement was for the printers and then came back
056later and said well we also want the ink and we're well that wasn't negotiated and then that later became negoti that was something former district administration agreed to the big fringes that are in the offices are still there. Yeah, they'll still have ink but they they get one ink cartridge paid for by the district for their CBA. So, okay. Well, we'll jump back over here. So, now we're going to kind of get into the expense side of where we're projecting out this next school year. So, salaries are about 25,980,000 and benefits are about 10.6 6 million and then our MSOC side is 8.7 million for a total of 45,364 and that's to kind of give you a rough idea kind of where we compare to 2526 budget. Um salaries are up about $400,000 although we've
057made quite a few cuts. One thing to to remember is in the pea contract last year the teachers gave up some of their enrichment hours. Those are back in this year. And so I think it was 34 hours they gave up last year and those are back in this year and those do cost a chunk of money as well. So So I want to make that real clear. We were very appreciative of that last year and it did help us even though we didn't end up where we had hoped to end up. They that was a one-year agreement. And so the salary increase includes I don't want everybody to think it was all a raise. It was what giving them back what was already in the contract. >> Yep. Certainly. And then benefits have gone
058up about a quarter of a million dollars. And then our MOCS have actually only gone up $70,000. So we've really tried to trim that side. And there's some areas that are very thin. And I just we're we're looking for some ideas from the board and that's kind of what we're going to get into here in a couple slides. >> So Drew, this 45.3 million.4 million, that's with all of the cuts to date that are planned. And looking back at our revenue projection, that's still $380,000 over our revenue. >> Yes, it is. and almost 1.3 million over where we want to budget, right? If we're going to budget 90. >> Yeah. If we want it to be 97 to 99%. Yep. >> So, we still have to find another $1.3 million >> to be there. Yes.
059>> Okay. >> But ideally, if we could try to get as close to zero as possible or to zero. That's I mean, if we can get there, that'd be a good start because at this point, you can't really do anything about your staffing anymore. we're past a lot of those deadlines. So, it's really going to be on the MOC side. And that's where I need some guidance from the board on what things are you willing to give up. Are there things that you're willing to hear from the community about that we just have can't do this year that maybe we've done in the past? Um, and so I have a couple ideas on some things, but I'm open to some input as well. I hope they add up to a $1.3 million. >> I wish.
060So now this kind of breaks it down by type of salary. So I want to kind of give you an idea what that's costing. So I started with the certified base contracts and that's for any certificated staff member. So that's principles, teachers, counselors, >> myself, right? >> Just want to make sure everybody knows we're talking anyone with the certificate. Yep. And then we've got the supplementals in there. And then we got uh subcost and extra time. And then we go into our classified side as well. And one thing I want to point out is the certified sub and extra time is actually less than the classified. And a lot of that is due to the extra trips, the sports trips, those things because there's a lot of extra time included in them because sports trips
061are are long days. So it it adds up quickly. Um it's something that every district faces, but it is just something to note that it is higher on the classified side than certified side. Okay. And Michelle beat me to it, but um as we look about our expenditures as percent of revenue, so we were talking about um wanting to make see if salaries and benefits would be under 84% and they are or about 82%. So that's where when I look at this, it means that we need to trim on the MSC side because we really are 82% is pretty dang good. Um, a lot of districts are closer to 84 85 and that's where they're really having trouble. Where you guys are having trouble is on the MSOC side. It's 19 and a half%. So,
062we really got to try to to do something to mitigate those costs. Now, there's a lot of those things we talked about from the state side that we're not getting help with. So, that means we have to be conservative in in some of the other areas. Okay. And just so just to note again, not to call out one specific union, but just to note these are the increases per union this next year. Um, any questions on this, >> Drew, on that MSOC percentage like what what number I guess district our size you thought on what what that number? >> It should be closer to 14 to 15%. So, we we have some some trimming to do because ideally, if you're sticking between that 97 to 99% of your revenue, that would get you there. So
063>> do you have some detailed analysis you could share with the board on the MSOC specifically and how kind of each of the components and maybe we can just you know look ourselves on the website you're showing but you know I'd love to see which areas if 14 to 15% is typical where are we over >> okay yeah we can do I haven't really done a lot of other district analysis to be completely honest with you. I've been really just focusing on kind of your guys's uh trends in just your specific uh programs. Um but we can certainly do some diving looking at other districts too. That's something Sean and I can take a look at. Um >> sounds like the opportunity to reduce is in the Mox, right? So >> um yeah, I'd be
064interested to know like each component that goes into that. Are are there certain areas that were higher than everyone else? And if if they are, let's target those. >> Okay. Certainly. Yeah. >> And then we touched on the union increases. And then so as you know, we're $380,000 short at this point. So we've got to try to find 380,000 and one to get back to back to black. So I've come up with some other ideas. I'm not saying these are what you have to do, but I'm these are some ideas for the board to think about. Um, so starting off a reduction of a principal or VPFT. So right now you have a principal opening. I don't know if you would have any internal movement or somebody could slide into that open position and then
065you don't fill that. That would save you about $166,000 by doing that. Um, if you had an outside candidate, um, depending on if it comes from somebody internal, there could be some savings there. If it's from external, it really there really is no savings because you couldn't reduce their position from. So, if you had like a teacher, for example, who had a principal cert that applied um and let's just say they're they're at the top of the scale and they moved into that and you didn't fill their teaching position, that would save you about $130,000. So, there's about a $35,000 gap between the two options there. Well, I I think there's I mean, I'm pretty well, at least my two cents is I think every option's on the table. Okay. Um, I think everything needs
066to be explored, um, you know, thought through and and discussed. I mean, I I don't see any issue with with any of those at this point, but at like Michelle's comment, and I think other I think everybody's in consensus, you know, we we've got to find at least another $181,000 >> after this, >> you know, preferably. Yeah. >> Yeah. Or >> 381. 381,000. Sorry. Another an additional 180, but you know, ideally we need to be down another 1.3. >> Yep. So, um you know, I don't know if that's going to get that probably won't get solved tonight. Um, you know, but I do think it might warrant having a just an MOC discussion where we can break down all the BA basically the line items, you know, and that would give us a better understanding
067on where we can >> we think we can cut. Um I think as part of this and with my previous comment on a policy um you know we've talked about well haven't really talked about but I think we should have a balanced budget policy you know where it's specifically states that it doesn't go above 90 97% of revenue and again you know we're we're going to do all the work and the pain and deal with all the pain to make this better for the district going forward for new admin, you know, different administrators, different boards, but you know, let's set some stop gaps or whatever you call it in place so that future boards aren't doing the same thing that we're doing today. So, I I would I mean I would be in favor of
068looking at that um sooner rather than than later, but um >> you guys agree? I'm sorry. Can I can I restate kind of because I need to make notes and start doing some things. So a budget policy that says and I've got I've got to put this in my head and then I got to make notes so that I can talk to legal counsel and and things about and WASDA to make see if there's any policies out there and so on and so forth. a policy that says our expenditures can't exceed x percentage whatever you decide but x percentage of the projected revenue. Okay. >> Yeah. I think I think that's will be helpful. I'm I think I mean I'm probably looking way too far in the future here, but ideally at some point we
069have a large enough reserve again that that might not be needed. So I I don't want to hinder a future board, for example, to have planned and grown the fund balance to a point where now they want to be able to tap into that reserve and spend over their projected revenues for an investment that's important to the district. >> Well, I think that could be part of I mean the this is the initial framework is a balanced budget policy. However we'd want to write it, I think it's something that reserve fund >> that we would we already have a fund balance. >> I know, but if you're gonna if you're going to add this to it, say you can't dip into it until your reserve fund is 10%. >> Right. What? >> Yeah. I would
070just keep I would just keep that in the back of your mind when you're writing the policy. It's like how do how do you make that flexible when we do have a healthy fund balance again? But I do think we need to be careful that we don't allow it. Well, I mean, future boards could always change it, too. But, um, you know, we want to put enough into it that we can never spend 100% or more or we're going to look at that chart and just be a repeat, right? So, if we spend 110% of our revenue, I think we'll end up getting in trouble. >> But, I don't disagree. I mean, we should be able to use it, but Okay, the next item I have is on building budget. So this year we did
071$64.56 cents per FTE to give the buildings their budgets and it was about $150,000 in the building budget lines. This would propose to take the building budgets to $14 per FTE, which would save us about $120,000. So that's trimming the building budgets a lot, but the district would take care of the paper orders as well. And so whatever's left for the buildings would not include their paper order. >> What was that number again? Sorry. >> Uh $120,000 savings. Again, I know that's not ideal, but it is something that we need to look at doing possibly. So, um, in regards to your open positions, um, unless they're sped or program funded and there's dollars in those programs, we shouldn't look to fill those at this time. You can always add staff in September or October when
072you actually see the whites of the kids' eyes. Um, and so if we're on the fence about whether we're going to have kids or not, I don't think we should we should hire positions unless we know they're there. Um the next three are program specific. So if we're asking the buildings to take a cut, we should ask um our directors, you know, have a cut in their budget as well. We've already trimmed some of these. So technology, we've already trimmed about $40,000 out of that budget. We would ask that they take another five. I know five doesn't seem like a lot, but we're very bare bones in tech right now as it is. And so more than that would really not be able to cover our licenses and some of those other items that we
073have to have. Maintenance would be another 20, excuse me, $20,000. We've already trimmed 50,000 out of that. And a lot of that's due to the contract work that we've done. So now it comes down to is there other items that if they break is wrong, do we just not fix it? Is that something, you know, the board is okay with taking some community feedback on potentially? I don't know. Um the last one would be food service. We've trimmed this already $50,000 and we're looking to trim another 20,000. We've had a lot of discussions about having to go back to prepackaged food. I know that's not ideal. I know we want to, you know, provide scratch cooking and some better meals for kids, but at this point, given the financial situation, prepackage is probably the way
074you have to go to be able to make some cuts and save some money at this point. Any questions on anything that's on here? Okay. Then as we look to 2728, so if you don't do the principal or vice principal reduction this year, you will need to do it next year. Right now, just looking at base salaries and we don't get you don't get funded enough for a principal anyway. You get $116,000 right now. There's no principal making 116 anywhere in the state, right? Um for the work that they that they do. And so you're spending about 250,000 over your allocation on principles right now, but again, you're not getting the money that you truly need. Um, I would absorb the assistant superintendent position as well as your CTE position, which are reduced for this
075next year. Um, one thing Sean and I have talked Oh, do you want to >> I just want to talk. So when we I want everybody who's listening Diana's taken to a halftime position and the other half is what we're talking what this is discussion is and then the CTE director position we still have to have a CTE director. We still have to rent it and it would be like a a stipend or a teacher on special assignment for that task but the overall amount would be quite a bit less. >> Y >> and then the middle >> just a quick question. Yeah. >> Specifically to you know I know we have different buckets of cash right is slightly different than all basic ed. Um how does that reflect you know if we're just talking
076basic ed you know we we look at program dollars or or you know special education or whatever it might be those come out of different pools. If CT comes out of a different pool how does >> I'm gonna let Drew answer it. It's the difference between what we get for that teacher and still what our salary costs are. >> Yes. Yeah. So, you get a little enhancement for your CTE. But one thing to keep in mind is we've I think I brought this up is there's some different things we're looking at doing with CTE that we have in the past. So, the accounting manual now allows us to charge some utilities cost there to CTE programs. And we can do it by square footage of the CT room or if it's on its own meter
077or whatever, but we're going to charge those utilities cost now because the shop costs more to run than your everyday building. And so that'll help offset some of the costs that maybe we're losing from a director because we still have a minimum amount of expenses we have to spend in CTE each year. And so why not already move something that we're incurring somewhere else that can actually fall into that bucket and and take care of those. Um something else you can look at doing if you end up having a CTE project that you guys want to take care of, maybe it's building a greenhouse, a new greenhouse for example, or a new barn or something, you can start putting whatever your carryover money is, you can start putting that into your capital projects fund and
078it can just be keep growing. And then whenever you decide to actually do the project, you just budget for it and do it. And so that's something we would designate at your end that we want to, you know, if we have $50,000 worth of carryover, we want $25,000 to stay in CTE and we want 25,000 to go to capital projects. And so I know some districts >> line item, not a general capital, it would be specifically ear. >> So I know some districts that are kind of doing that and they're kind of using their carryover to kind of plan for a big project. So, that's something new as well that we can do. Any questions on that? Um, we've talked about the middle school is going to go from being one to one to have
079cows down and so when we do a replacement cycle that will be less Chromebooks to order and so that will be a savings. Um, currently you have I think three secretaries at each building. Maybe you have to look to go to two or reduce reduce the secretary at each building or or maybe one at certain buildings depending on your enrollment size. And then something else that I've seen districts your size and larger do lately, they've been running a tech levy. So along with their EPN levy. So I know you guys did a capital levy this last time. So it might be this next time you do a tech levy and you have tech specific items that that levy helps cost. That is the end of my presentation, but I'm happy to take any questions that
080the board has or go back on any slides. So, I guess for for me, I I'll kind of just say it again, but I don't think anything's off the table for uh 26 27. >> Okay. >> Um I think we need to explore all of that. Um, you know, we've talked about uh or it's been mentioned, I think, you know, even I think if you if you're in binding conditions, if we sell a piece of property, that can kind of help absorb some of this or try to to get us back in the right direction. I mean, like I said, everything should be on the table and I think we should really look at and I'm not in favor of it, but uh look at the Misomer property and you know, and if that is
081where we have to go, that's where we have to go to get us right. So, >> yeah. And on the property piece, just so the board is aware, you do have to petition to OSPI to be able to put it in your general fund. It's not just an automatic. >> Can you do that prior to any sale? Um, yes, you can do it prior to the sale, but I believe you can only do it once in a 10 or 15 year period. >> Binding conditions. >> You do have to be in binding conditions. And so, I think you'll petition to them and they want to see that it's a one-time quote unquote fix. And so, they're going to want some documents from Sean and I just to say, okay, what what is the actual financial
082picture looking for the future? Does this truly help the district to get out and what things do we have in place moving forward to so that you know we're not going back in a year from now going well it kind of helped but it didn't really get us out right but I mean ultimately we've got to find 380,000 plus probably should be closer to 1.3 million >> um like I said we need to look at every option you have listed for potential potential today as well as everything that you've got, you know, plus some as we, you know, get into the MOC budget and really, you know, get down and have a meeting like this with with just specifically that. And that would for me it would help me make decisions on what to cut
083and get that down to 15 14 15% or whatever it needs to be. >> Okay. And just so the board's aware, this 2627 savings is about 330,000. So, >> right, >> roughly give or take a few dollars, but that's roughly just so you're aware. So, yeah. >> So, you're down to a million, either a million or 20,000. >> Exactly. Whichever way you want to look at it, but yeah, we want to be further in the black, obviously. So, >> right, >> Jason, I appreciate that you brought up the ability to sell property, right? It doesn't cut our It doesn't save us anything on the expenditure side, but I always try to keep in mind there's two sides to the equation, right? And so you can only count your expenditures so far. Is there any more
084opportunity to increase our revenues? How might we go about generating more money into the district? Is there opportunities for grant funding? Right? And this is where like I think our community has so many resources and ideas. like I would love to hear from people if you have ideas about a grant you hear or an opportunity that we could get money that might help our our revenue side of that equation. Right? So like I I definitely want to hear about opportunities to cut expenditures, but like we have some pretty resourceful community members and they might have ideas about how we can help get some help on the revenue end of that too. Yeah, I think maybe and I know we don't always get a lot of community support at the meeting itself and I know it's
085you know timing of working and everything else but maybe it would be worth the board having you know an open session with the community to take feedback of you know what are other funding sources or things that maybe they want to see um get their input of what they would be okay giving up to. Um, I know I've seen other districts do that and they actually got more turnout than they ever have at any other board meeting. Um, and so I mean ultimately they're your taxpayers, too. So, um, getting their input would be would be key. >> Yeah. I mean, and this is a very silly example that I shared with you, but like, you know, I like can we crowdsource some of this stuff? Like, if it's really important to community members, can they
086write a check for it? Right? Like my son came home and said, "Oh, yeah. we didn't we didn't get to do dissections in biology because the budget cuts we don't actually dissect, right? And my husband said, "I wish I would have known that. I would have wrote a check and bought those animals for you guys to dissect." Right? But so like before we cut things, if there is stuff like that that's important to the community, they might be willing to fund it. It's just something to think about. So I have a couple questions. I'm thinking about this MSO discussion. Um I'm looking at, you know, knowing that we have to have a budget approved by August 28th, right? I'm wondering about July 29. Being a little bit selfish here because I am on vacation 13th
087through the 17th, which is traditionally our third or middle of the week month thing. Now, I I could jump on on Zoom, but I don't >> Well, our normal board meetings are July 8 and July 22. Normally, we do it if we if we do a study session, we would normally do it on the third week, right? And I'm gone now. I can jump on Zoom, but I wouldn't be here in person. >> I would not be here either. >> Oh, I didn't know that. >> Yeah. Okay. I'm I'm out the 12th through the 22nd. So >> So I'm wondering about July 29 for an MSOC budget study session. >> And we've got to have the budget done by when? >> August 30. Well, technically I think it's the 31st, but >> it's got to
088be filed by the 31st. So >> yeah. So we would have our normal meetings would be the 12th and the 26th and we have to publish it in the newspaper for two consecutive weeks prior to holding the budget hearing. The other option is we could add an MSO discussion in a normal board meeting knowing that it would just be a longer meeting that night. Does it have to be on a Wednesday? >> No. No. I just We've always just I I don't It doesn't have to be on Wednesday. I I probably prefer two shorter meetings in the same week than one really long one. >> Okay. Well, actually, I don't know. I'll do whatever. >> I mean, I know the 29th is later. It is a business of the month. So otherwise the eight is
089our next >> Oh, I think we could I think we could pull stuff together by the eight. Oh, no. >> No. >> Sorry. >> I'm getting swamped with other budget reviews right now. I think I have six other budgets to review. So >> no, you're good. I think the 29th would work well. It gives me time to kind of digest some of this what we talked about tonight. I can get with work with Sean on kind of pulling some comps from other districts. We can do some trend analysis of just prior years too. Um and so that I think we'd be more prepared for discussion on the 29th if that works or anytime in that week for it doesn't have to be the either. >> I you're right, Michelle. It doesn't have to be a
090Wednesday. It was just force of habit. I looked down the weds >> 29. >> Okay, I can do that work. Yep. >> So, it'll be an um I just want to make sure my notes are correct. We'll be reflecting a study session on MSOC expenses 6 p.m. >> Yeah. >> And you'd be able to have excuse me comparisons of districts and sizes. I think I think so. I think we could do some of that. I would really like to compare more to yourself because I think there's areas, but I think we can certainly do some looking at other districts. Um, I just think it's hard to look at the other districts and know what they have going on in certain departments, too. I mean, food service is a great example. Do they have an open
091campus? You know, what options do they have around them for other if they are an open campus? What food options are around? Are they free meals at the school? Do they do they charge for meals? So, um I think you kind of get kind of muddy the waters. Um we've talked a lot about the new building. Has anybody else, you know, had new builds lately? Maybe that's one thing we can look at for maintenance facilities and have they seen an increase in some of their facilities cost too? Well, >> I think I mean part I guess part of that why I throw that out there is I mean we we talk about right sizing, right? Sometimes when you're talking about like cutting all of these salaries. Are we just cutting salaries or are we honestly
092right sizing the district or we just could have buildings with one person in a building? >> True. Yeah. >> So I I guess trying to make sure that we are right sizing and people are comfortable with what we're trying to do. >> Yep. So >> I think right sizing has also a terminology that means less and is it possible that the right sizing doesn't discussion didn't happen when we went to a bigger building understanding that it needed more custodians to keep it clean and so right sizing I want everybody to understand right sizing doesn't always mean less right sizing means you're looking at the square footage there's a formula from woa on how many custodians it should take to fill that not talking about the salary of those custodians but this is what an average
093person can work in 8 hours and this is how many square feet they can do and we were talking about that trend line right when those buildings went into place that went down fast did we we including me but I wasn't here but what I'm saying is did we look at the right sizing of the cost of the custodians at the time when the building went in or all of the buildings and that could have been we didn't realize it's going to take seven more custodians and did we plan for that additional right sizing or Alisa brought it up bigger buildings more power this power bill didn't really go away it's changed and you added a whole new building >> yeah how much does increased how much enrollment would have to be increased to make
094all these problems go away >> or is that even an option is that an answer >> yeah I mean you get about 10,000 per student. >> So 100 kids would give you a million. >> We have 350 approximately students less than we did 10 years ago. And that's >> a little $4 million. That's twice as much. That could be >> really helpful. >> Certainly. And that's something all districts are facing right now is enrollment's just decreasing. A lot of homeschooling's happening or they're moving out of the state, too. So, >> so I guess um you know what where do we what's our next steps? How are we going to get I guess my next qu like how are we going to get the cuts to get to 381,000? Um like when are we going to
095start having >> Well, we'll be able to tell you what we've done. I mean like and you'll be able to you know at the next board meeting I can give a budget update like in a discussion item right here's the 381 now we're at you know >> 19 and now we're at >> we might need some guidance on the board on some of these items to make sure that they're okay with some of these too. I mean, this is I mean, I know you say everything's on the table, but I mean, some of this may come with community feedback, too. And so, especially around the maintenance items. So, John, can you take another 5,000 out of your budget? Is the lights going to stay on? Well, I know everything's on know everything's on like a
096computer program, it seems like. So, >> go back to that. Everything's up for negotiation. Uh, can I cut another 5,000? I can certainly go back to the drawing board and try. I've worked with other I've worked with some of my vendors to get some of our contracts lower. Uh the reduction in staff, you guys saw where the Office 365 bill went down. Well, that's because we pay per person. So, if we have less staff, less students, we pay less in Office 365. Uh we cut a couple programs that I think we can uh work around. We can we can come up with a plan to not have those or use something that's less expensive. Um, but I can certainly go back and look at what's left. >> I think a discussion that's important for us
097to look at and we we haven't had this um and it's it's not something that would apply to the 26 27 year. I think with 350 less students, we need to look at the and having three elementary schools, we need to look at the cost per student at each of those buildings and see if one building can be absorbed into rooms the remaining two. That's not a discussion that has happened but that's important something I guess but my my opinion would be I'd like to see two different maybe scenarios. I'd like to see this scenario that you have up there now. Plus, we'll have to figure out M socks, right? >> Um, which is probably going to be where everything else comes from. >> Yes. >> Um, and you know, maybe even I think maybe
098just a couple scenarios, you know, you might take out the IT budget or something. I don't know. Andy's here, you know, 20 grand. you riding a bike around town. I'll give an example and it's please understand I'm I'm not identifying a person here but remember one of the things when I came aboard Andy was new people wanted green grass that's someone to irrigate the green grass is the community going to understand that we may have less green areas is we don't have the people to irrigate. I think that's what Drew is talking about is the community really to understand what does that mean? Right? We've got things looking pretty good. We didn't have too many dandelions this year. We didn't are we willing to have more dandelions that go way out, right? And less perfectly
099green things. And I don't mean like that we aren't going to water, but I'm I don't I'm not saying we're have brown football fields, but they may have broad leaf in them because we're not going to be spraying or fertilizing or doing whatever is the community, right? We don't somewhere if we talk about MOCS and maintenance, that's what we're talking about, right? We're cutting 20,000 some of those contracts for those kinds of chemicals or those kinds of labor intense things, right? That's that's what we're talking about. Anybody else? Drew, how how quickly could you get some MSOC data at least to the board for us to start looking at to prepare for that conversation? >> Certainly before I leave on the 11th, I would want to have some, you know, something to you guys. I
100don't know if it's going to be totally finalized, but it'd be nice to have something to you guys to look at. So, >> okay, that'd be great. I think the other thing is is we can send you the link right away and you can start looking at MSOC from other places and comparing past years for us and see where the changes happen. >> Yep. >> Perfect. >> Right. I mean that would be and that could happen as early as tomorrow. And then I guess I want to think about like if our community does have ideas, suggestions, strong feelings about something, right? Like what is the best way for them to communicate that to the board before we make some decisions? >> Probably listen to the meeting would be a big one >> or be >>
101send an email to us to you emails. reach out. >> Um I mean it's been I think we've been here for a whole school year talking about the same stuff. >> Yeah. >> Um so yeah, >> sometimes you don't hear anything until it gets real real. Until it's really real. >> I know. So, you know, I just I guess I'm trying to avoid this scenario where a lot of times people will show up for public comment, you know, but they're expecting a dialogue or answer, right? And that might not necessarily be the right forum. So, email I think is is good. Email the board members. >> Yeah, Kim, you know, email Kim us. It's kind of an open forum. I mean, um, you know, we'll try to get back at I mean, I'm not super
102good at my email, but I try. But so, um, you have a plan going forward or we all over the place? >> I Yeah, I'm kind of finalizing my thoughts with everything. So, I've kind of taken in what you guys have said and tried to figure out how can we, you know, portray the data to the board on that MSOC discussion that will give you some ideas of what decisions we can hopefully make at that time and and give us some guidance. So, >> yeah. >> And then as far as 26 27, um, we'd be good with >> So, the bottom three bullets are all MSOC related, >> right? >> And the others will meet with the staff um at KRV will meet with the principal association. We'll meet, you know what I mean, and
103talk about the pros and the cons of the first one and which which way. I think I I don't know. I think today we have seven applicants in the pool that for that KRB position. Um so we did open it. So, we would need to notify them as like this is where we're heading. Um, the building budget is an MSOC type reduction, right, Drew? >> Yep. >> Um, and then the not filling any open position, that's tough because we don't know who may resign. We don't know what may happen, right? But not filling any open position, I'll give you an example. We have a life skills opening. You have to fill that sped position. We have music which is an elective which has to be filled for a graduation requirement. So when we say not
104filling any open positions, are you really saying don't fill the music position? I don't think that's what you're saying because it's a graduation requirement. But is that what you're saying? I I that's that's an example, right? because I don't want to have my crew and I call it my crew people all the interview panel people and do these things and interview these people and then we bring the recommendation to hire and then you say no we're not hiring right does that make sense so I need to I would think that a graduation requirement for a music teacher and our electives is something that has to be done life skills I would tell you we must fill that position. The state law is such it is we have to fill the life skills position. An example
105if let's pretend a second grade teacher ended up having a something and they asked to get out of their contract and then we don't fill that and we don't have a second grade open. That's why I'm using as example. And then we say we're going to not fill that position. Then that puts all of the teachers in overload and we lose our K3 money. So how much is the K3 money? >> Well, it depends on how much you're will how much you give up. I don't Yeah, I don't know. >> I mean, but our K3 a lotment is like 800,000. >> It's it's quite a bit. So >> So I'm just using that second grade example. between you paying the overload plus losing the K3 money, is it worth to not hire that position? So,
106it's really when you say not filling any open position, I don't want anybody think that we're being wishy-washy, but there's many pieces in making that decision when you're going to pay overload pay versus and excuse me, losing some of the K3 money. Do you fill that second grade position? So those are some examples of struggles that we have >> and I I don't know how you fix that but uh I think it I don't know if well I'm not imposter doing any of that but you know having a fiscal analysis you know let's say the second grade teacher example if you know is are we are we going to save 100,000 to lose 600,000 that doesn't make any sense >> you know But, you know, if we save a h 100,000 and we lose 50,000,
107>> you know, that becomes, I think, at least a discussion item. Not that we do it, but at least it's something that we can discuss. >> Thank you for bringing that up because that's what I I kind of needed to hear from you. >> Good. Yeah, that's my opinion. So, >> so a fiscal analysis of what when we make a decision. Okay. >> Any other questions for Drew or Kim or >> Yeah. Yeah, thank you, Drew. >> Yeah, happy to do it. >> And then can you make sure we get that link to whatever that >> Yep. >> We might even just sit here and do it tonight and get it right to you. >> Okay. >> Yeah, that's easy. >> Any other comments or questions? All right. Hearing none. Um future meetings, we have
108a regular board meeting here June 24th right here in the boardroom at 6 PM. This meeting is adjourned. Thank you.