001505 and we will call this meeting to order we do have a quum um we can go ahead and I don't even know if we had um yeah we're just gonna have the Finance Workshop right now so we will go ahead and get started thank you m all right so Molly kind of gave me an idea what to do so this is y'all's Finance meeting I really need y'all to let me know what you want um otherwise you know it's the same old any I'm going to start um just kind of with our budget process and 99% of this yall have seen well L She haven't but um you know this kind of goes with our budget hearing every year so I'm just GNA go through so stop me ask questions um I know like
002I said we we do this a lot so just as far as how we develop a budget you know it's that's really not useful um slide but you know we just prepare it it's approved by ped then we um you know execute and review that's just anyone's budg is so this is how our school um has worked in the past in the last few years um probably the last four years we've kind of I I don't know that we have the site leadership teams really doing the same things like like like a few years ago it it was intended to do po but I'm still going to leave that slide in there and explain because it worked at the time so each school elen from Middle High had a site leadership team for L better
003name um they have you know staff on it some parents and the principal and the premise was you know if I'm if I'm a teacher and I have either a concern or a question or whatever I would go to whoever that those representatives are on the site leadership team and then the principal if it need be they'll bring that to District leadership team and then school board so that's just um that's can be that way things can change you know we can do so right now it's sorry jeny it's not working that way well I the site leadership teams I don't know I I don't know but um and there are I mean they're not going to get in depth in depth about budget with parents and the teachers but you know teachers come and
004have a question say hey why why are we why are we not paying for ID National Convention you know um do we have budget for that and then if I mean the principal knows our guidelines that the district as they are now pays everything through state level competition and then they fund raise for the rest but even just conversations like that are helpful or hey you know I traveled and I didn't get reimbursed for whatever well it's because that receipt wasn't itemized or the tip was more than 20% or whatever so just even conversations like that really help I think really help us here to get to get an expl process procedures you know um so that that that's kind of how we're we're set up and I think it's a good and and our
005principles do we teachers um it's hard to get parents y you all know as working here a lot of times it's like you're the parent on the team because I can't get other parents to come in so our budget calendar you'll hear the words sometime it kind of starts you know July 1 really for the next year but come fall come October we're doing our 40 count our 40-day count what it's one of the things that Flor is to determine growth whether there is growth you know some school districts are really popping and getting a lot of new enrollment head will compare that to our previous year 120th day and if there is a certain growth and I don't even went for the percentage because I'm probably wrong but then we get additional funding um
006in October we also project what we believe our membership will be next year and as long as I've been here it's never increased because we don't want to do that we would rather you know estimate low than high because if but say um that's some Big Industry move in you know you see it more in bigger towns like real ran show or something like that you know some Big Industry moves in they know their enrollment is going to go up they do they do project that higher membership which helps um and gives P an idea of what what student populations in the work in October we also do the TCI which is the teacher cost index it used to be called the t& training and experience that's where we map every teacher only teachers now
007there if they one two or three and how many years experience they have they have them I want to say zero to five years 5 and 10 5 15 and over 20 that creates an index that is in the formula and our units are multipli our membership is multiplied by and then just budget discussions again and I know that's to me it's very broad it's not it's kind of like the national travel or things like that it's a lot of time those discussions aren't okay so how did that TCI index go up or down and for your information this year year we're in RTC index went down a lot we have four level three teachers leave um retire three retired one resigned and of course we you know so we're going to hide normally the
008teacher that get hired a lot of times is a maybe a level one without as many years so that affects us and what that affects is the following years's budget come December um Second Wind or December one J sorry so it affects us the following we lose them this year affects us next year yeah even though we hire somebody that it's at that level or if we just hire level one say we had a level three retire and we hire level three of 20 years then you're not going to see any change okay that's what makes a CH or you know let's use where we might feel it in the current year say we have a level one teacher leave and we hire a level three 20 years we're paying out a lot more than
009it's generating you know soed for the next year in October that again okay yeah will they offet that backwards or no no they won't compensate no we're set we we that's just the way it is yeah okay the only kind of is growth you know that student growth on the 40th Day that's the only time they will adjust okay um and you see in every month I have budget discussions because it does go go on all the time in January the legislative session in odd years it's a 60-day session even years it's a 30 day yeah and um the 30-day sessions are really only what the governor I know there's a word for it but it's what the governor wants there you know so you're not going to see bills a lot of bills about
010professional hours or things like that yeah sometimes they are there but but you just see a lot more you see a lot more on a 60-day session because the legislators are allowed to introduce bills that are not necessarily gered of what the governor what her you know agenda is or whatever yeah and I don't mean to say like that agenda but yeah you're definitely going to have your age between your Fe Bill your your budget but you you're not going to have the extra stuff on a 30-day session once the state determines their budget then they pass down what the mandates are the priorities we'll call them priorities there you go there you go which often times differ the M the school districts so then the state yeah they T their mandates mandates like um
011the raise you know what the percentage of increase will be we went through what four or five years with zero increase in salary um that's where we learn nyia Public School Insurance Authority waits to see what the legislators legation is doing see how it affect them to determine what um premiums are going to look like and I maybe getting ahead of myself maybe not but just FYI next year's premium increases um last year I I don't remember what it was it was a double digit increase is where they started that's what they told us the legislature talked to n and said hey please don't do this you know you're killing people and MC is like yeah but we're paying all these insurance claims and they're self-funded they have to have the money to cover those
012so legislator has kind of made a promise okay next year we'll we'll make it good please don't you know don't give them a huge increase um I think last year was around eight 7even eight% it was under 10 this year just this week the nsia just last week the nsia board met and they legislators did Infuse them $65 million without that our premium increases were going to be 17% and um so with the 65 million and some plan changes so the quality of the plan decreases um we're going to have a 99.95% increase in medical and a 4% Dental so one thing we do usually after the session I send an email out to staff just kind of give them a heads up on what what to expect and so I'll say in this case
013you know they're saying we're g get a 4% raise insurance is increasing by 9.95 and then I always give them a little table to look as an example because a 4% raise 10% increase is not a 6% decrease in salary so I give them a table to expl that saying hey okay this is how much your insurance premium is going to increase kind of give them an example and then so they can figure that themselves um Dental is going up 4% Risk insurance that's like our property liability um auto insurance things like that is it was originally before the cash before they gave them money it was going to be 16% now they're coming down to 11.09 so which is our r premium is under 400,000 it's like I want to say 345,000 it's a
014lot and it it's increased a lot they're going to make some plan changes too um they're gonna they're what's really driving their concept are like the sexual misconduct cases and then of course we have fires and hail and floods and all that but the sexual misconduct is is huge and in fact I think there's I don't know if it's legislation or nsia is just doing this they're going to implement some very high deductibles for those those incidents so so that that's you know Insurance just stinks it's it stinks to go like that and our risk people is Palms I'm sorry is it Palms yeah um yeah Palms is like agency and then there other insurance there yeah so so those are some examples of mandates another mandate I believe we're seeing coming is the minimum
015teacher salary that levels one two and three is going to increase by $5,000 um we're already there so you know we don't have to to I me we have to look at our salary schedules but we don't have a Hu a $5,000 increase just automatically you know look percentages things like that there's also something out there about a minimum EA instructional assistant salary of $30,000 there's also talked that that could be a minimum salary period for School Employees full-time so I've heard it both ways in conversations if it's an EA salary that they're talking about um that's going to be about a 177% increase for our instructional assistance and where that we struggle with that in school districts you may hear the term compaction from legislators from St from your um you know so we
016kind of have I don't like to use the word hierarchy but that's kind of what it is we have our hourly people where they're starting what their wage is hourly wage take the um consideration like bus drivers are on a four hour contract cafeteria is on a six and a half hour a day most people are seven hours a day some people are eight hours a day so we we make that you know just I I'm losing the words today but we get that where we're we're comparing Apples to Apples um look at the daily rate then break it down because the daily rate is the only way we can compare salaries between people who are on different lengths of contracts so we break that down and um it it will bump our EAS above
017folks now who have traditionally had a higher hourly rate than they did so you know where it is sometimes they oh they're going to make it good they're going to give us funding for that but I don't we'll see so those are just some of the mandates that we have to worry about you hear the word unfunded mandates a lot so that $30,000 or any kind of minimum wage it affects every single fund every single person no matter who they're what fund they're paid out of we have um folks paid out of federal funds like Title One migrants um idea and PR School those are all federal funds as is cafeteria and the FEDS to give a darn what our state mandates are so those budgets have already been shrinking in the past years and
018here we are taking a higher you know that insurance rate going up salaries going up so that means that those funds we going to have to subsidize more out of our operation Operation yeah so there's lots of you know just lots of dominoes that fall and lots of ripples when when there mandates like that our unit value is set by ped and I I'll go into that a little deeper um in February we do the 120th day second Wednesday of February our budget is determined by the average number of students of those counts the 80 and 120 day that determines the subsequent Year's budget um and then in the spring you know after the legislative session we get unit value ped sets the unit value and calculates our scg or state Equalization guarantee that's our
019operational fund um we have to look at Staffing and so that's kind of overall the budget process before I go on do you all have questions um something didn't make sense you're doing great thank you well please please ask question though because just because I think I think I say things do comes out right yeah so this is kind of cool I I stole this from a friend's um she's in Grant or Gallup school you know the secg state Equalization back in the is when our state put this Equalization guarantee in place and it's the equal treatment of equals so basically you know we get the same allocation for every first grade but then it's the you know unequal treatment of unequals so you know we have a first grade student who gets x amount
020of funding but then they might be special ATS so they get a little bit more or they might be you know fin so I I just really like that I think it does 74 it does a good job of kind of explaining why the reason behind that SG that Equalization I don't know if it's still true but one time I think New Mexico and Oregon were the only states with kind of an equalization guarantee but I have heard that more states to that um that's kind of our funding formula so there there are a lot of aspects of it to get that number on the bottom our I'm gonna keep going but that's just kind of what it looks like so everything we do is based on we are kids the number of kids we
021have membership or M A lot of times you'll hear people referring to it is more or less it's rears and seats you know it's the number of kids we have so that um so it says f25 so that means that 787 is what last year is the average of 80 and 120 in think and so the number for that year is based on Counts from the previous year and you can see we've been dropping um steadily I know at one time since I'm in here I know we were up about 1100 Nancy you probably have memory of you know we had good 1,200 or more students so this is just an example of how we take that m and turn it into units um this example just shows we see like prek Kinder in kindergarten
022these this Factor so you know we have 14 prek it's going to multiply by 1.44 but because if our pre is only half day it's only we're only been divided by two but then the other grades you see we're full day kindergarten but you'll see where the number of 10th graders we have will be multiplied by 1.25 that's more legislation that's up there right now they're hoping to increase the 1.25 I think to 1.4 something like that which will help you know basically it's their ability their thought of how much money it takes to educate educate that child little kids it takes a lot more because you can have less of them in a classroom and as they get bigger all the extra CTE any of that stuff takes more funding to so that that's
023just in but the entire formula the entire spreadsheet or different things like that on how we create these indices and how we come up with the total number of units so this year's budget is based on you know our 787 kids turned into 19.27% kids our TCI that that indic that we multiplied by generated another almost a thousand units our special ed generated an additional 285 um and that's not everything there we also like school size adjustment we have a high school Under 400 so there's some more more in more generated there more units have generated District adjustment we're under 4,000 that generates some more and this is for every state every school across the state you know so any school under 400 is going to generate extra um extra units if we had national
024board certified teachers that generates more units however we don't benefit from it it goes straight to them basically but um at risk is something you might hear a lot about that can be our free and reduced our our poverty level our Mobility so up right now that risk is generated by a lot of Title One data and Title One data is from the Census so it um poverty mobility and and another index so another change Santa Fe is working on is changing that at Risk Index and using a school income index that school income index has been in place for a while we don't get anything we don't get any I don't think I have the name right but we don't generate any funding for that so it has a lot of us worry like
025if they change at RIS what what's it going to do to us um there is a whole harmless in there though so that's good you know if if it does drop we'll be held harmless some of the estimates that went out show that we would be okay like based on what our budget's on now as to what that we would have an increase of about 400,000 but you got to remember our um we're down 40 kids but so they're telling us that you know we're going to be okay out of schooltime activities I had it like bold or not blue there because we weren't doing it but now um thankfully you know we're doing a good job if a kid if we have a home school or a charter say there's a charter school child
026who goes to Sydney yet lives in our district they can play ball here or dnfa just like homeschool kids now we get a tiny tiny little index for that because our um procedures have changed where they have to come register you know our our ad has done a wonderful job of making sure that happens and not so this is this year right now is the first year that we've um have that enrollment and had a few you know just a few units generated by that but hey every a little bit we want you know and another thing too you know we need those we need to know who's in our school was on that Basketball Fort plan all and we we couldn't get that before but but I am thankful she's done a really good
027job and and understands the importance of it our unit value PD sets that um and you can see you know it's it's 6442 and actually that was before we had a beginning of your increase so now we're 65 55 something like that so once all those units are added together everything that's generated from the membership from the TCI from um trying to think the Fine Arts we have the elementary Fine Arts there units in there that are generated and that's how we calculate how much funding we have to spend on Elementary Fine Arts because we have to track all that report it this is just a visual before I start talking about FS um Nancy help long time ago we came up with this many moon long time ago but it's just kind of you
028know we have different pots of money and sometimes it's hard to understand okay we're like especially think of the years that we had zero raises it it was awful but then we go buy a new activity bus and people understandably I mean me too if I didn't know it's like what the heck you know you can't you can't give a raise but you're buying a new bus and and so this hopefully helps explain you know we bought that new bus out of capital funds we can't pay salaries it's Capital um transportation sometimes is is gets a little confusing only because so in my you know non School brain my transportation is every time a bus is out there on the road or a suburban and it's not our transportation fund is only two and from
029it it pays to get the kids to school and home it doesn't pay for after school programs if we provide transportation we have to fund that ourselves it does pay to take kids to the Community College because that dual credit but that's it so all those field trips and ball games that that is not transportation funding so I I know I mean same thing you know until you until you know you have no idea um food service we have our national school lunch program Universal free meals national school lunch is a federal fund Universal School meals is a state fund but the rules are pretty much the same and it is really that's all it for is to feed our kids our food service our food service folks can also generate money like from caterings
030things like that um but then you know when we separate that money and we have to designate you know how much revenue comes in from caterings or other than our funding sources instructional materials is textbooks it used to be a separate fund now it's within theg and it's more than it used to be but it same thing it's for textbook software for instruction Capital um you'll hear funds like s sp9 or Bond or things like that those are capital it's going to pay for our maintenance for our buildings for activity buses or Suburbans things and so we got to vote or our you know our constituents vote on bond issues every four years if we in our that has been our Norm every four years we got for B election um but then s sp9
031or it's a two- Mill Levy Levy you'll hear that term too every six years that goes to our district and people vote Yes or no and you know just knock on we've been so fortunate our community supports our schools and some you know there are times it takes I know we had groups of people really help really go out there and give the put the word out and what it's going to do I'm gonna use Bond as an example because sometimes you hear I'm not heard it here but um you my from Rosell you hear well they said they were going to build I believe was anator or something and they didn't most likely the language in it was so General it was like new construction and remodeling now they may have gone out and
032told people that was part of the plans but you can't always you have your priorities and you can't always do everything I don't know how I don't know anything about it but I do know that there are misconceptions you know and and that's up to us to be careful and not make promises and say oh we're gonna have a bond election and we're gonna build a new J you know because on our case we don't have the bonding capacity to generate that much money but we just need to be careful about what comes across as as promises you know because because they're not so anyway special special funding um that's going to be our federal programs we talked about special end we have state funding within the operational but we also have Federal funding and
033then we have like title one migrants specifically for migrant students um title for I'm pretty sure it's for STEM Science and Math kind of stuff or in it is definitely our expert on that and then we have local and that's going to be we call it activity funds um we also have you know a couple booster clubs that give money to the district we have donations from parents local donations um so those are different pots of money I'm going to kind of keep I'm already explained them next slide so I'm going to just keep going um I guess this is just basically written out what I what I told you so if you have questions um there's something called the you'll hear called the Yuka Universal chart of accounts and it's it's based on a
034federal our state is trying to get better about really matching that Federal in CES chart of accounts but so they're different categories like all of our federal funds are gonna our special funds are going to start with a two if they're Federal they're two4 if they're state they're 25 um 28 is like a direct Federal grant all those 24s FL through PV but like a 28 goes directly to the school we have a 29,000 fund a pilt or payments and L of taxes we'll have you know a solar farm go in or the windmills and they they make it deal you know start de Commissioners and say hey instead of paying property taxes we will make these payments to school districts so there is a big solar field somewhere not in our school district but
035we still get funding we get about four, um and then just Rec just this year we had another one that you know we didn't know anything about it so we got a check and a letter in the mail with the agreement and I want to say it could have been around 9,000 a year that we'll get like 30 years $4,000 $9,000 isn't very much 13,000 isn't very much so that plan just sits there and eventually it'll build so we can do something with it it's discretionary how we spend it but you know $4,000 isn't going to make a big difference so and and this isn't just because I say this doesn't mean it's how it has to be but in the past that's what the decision was made let's Let It build up you know
036and then do something meaningful with whether it's playground equipment or you know what or maybe um textbooks maybe we're having very expensive adoption you know because if not just that 4,000 will just know you know just like just water you know it's like if I have cash it be invested yeah it can be invested this time um yeah it could be and we're we're getting there it wouldn't make a whole lot but but yeah we could do that and I haven't even thought of thaty so it's a good question thank you our local um something else I just want to clarify we have an Athletics account or also we call it gate receipts our gate receipts do not sustain don't even come close to sustaining our Athletic program so we don't even try to use
037that money to cover coach's salaries and all the trips again we just sit there and let it build and so maybe a coach needs maybe track needs a new high jump whatever whatever you know when they or a pitching machine at baseball or I remember one year basketball coach got one of those um you you shoot the ball and it comes back at you you know so things like that that's what we use that athletic gate receipts funds for again just because I think right now I think we might have $80,000 in there um it it gets cut down when we buy an activity bus of course it can never it never funds a whole activity bus but we will fund part of it out of there and then 23 are all the fundraising funds
038I think I talked about capit outly accept ENT notes every five years um this does not have to go to the electors but it has still has to be like within our bonding capacity but we can sell Ed Tech bonds it is for technology local bonds can also be used for technology the the language in our election is technology for students um one nice thing about the Ed Tech notes is it can be used for you know like offices in central office or things like that if you need computers but any kind of Technology we don't buy we don't pay for like subscriptions out of it like firewall subscriptions or you know things like that we it's equipment Public School capity act um I have that 27% it's 19% is what we're paying now that's
039where we match what pscc funds and then legislative Awards or sometimes you hear called pork funds for when did we build the fit Center um 20 229 maybe right around there okay so that was the last time we asked for legislative funds we got $100,000 to start that project was so we had to pay that back the next time we got the PSC funding that $100,000 came right off the top we had to pay it back so when that when we learned that was going to happen we qu asking for Port money we didn't go to our legislators and say Hey you know we want to fix our parking lot would you you know please we' like $200,000 you know we we stopped doing it because we know we'd have to pay it back um
040now I don't know if it was last year or the year before that that has changed so yeah we don't have to pay that back so this it was year before so this year we went to our legislators and we asked for we we gave them four projects I know we shared that with y'all way back whenever we did that you made little flyer I looked in the language of the bill and you know it's not our individual projects it's just you know for Dexter schools to build and remodel you know very general but with no amount so we don't know we won't know talk in the session how much we're getting but our legislators are great you know they want to help and they have that money that they can they can give out
041so um some of the projects we asked for or talked to them about was you know issues with the track um Bus Barn needing some kind of talk about putting like some I used to work carport very Loosely but you know where buses can park under it and then we have electrical there so they can plug those deces in um we also talked about drilling well because Green Field water I know is having we're worried about Greenfield water so that was one of the things we we brought to their attention the need to drill a well out there um a domestic well would be an irrigation well that you know well so we can rely on ourselves for that water and then your last thing was uh for uh irrigation systems at the practice fields
042uh practice fields at one I think or one right here behind the middle school and one that's right so we'll see after the session what we get I don't think everything we won't get enough to do everything but then we can decide of those projects I talked to you about the federal and state funds um some are competitive some are you know based on census sometimes it's a one year um some of them are used it or lose it you know but then others you can carry them over the Mexico prek use it or lose it um so they all have their own their own rules so once this is just a kind of a random SL too this is kind of the system we do once we decided so I don't have a slide
043on this but as far as getting the budget ready we have a deadline here for our um principles to have their money encumbered by the end of March and actually is like March 26 that way we know what they're planning to buy in what lines so that we can use those numbers everything is there encumbered we have a total of how much they're going to spend so we face next year's Budget on that but then say um we know that we have to you know specific things of course that we need to add or or change but but that's our Baseline that's what we did this year that's where we start trying to figure out what we're going to do next year um but then once it's done that spreadsheet is put into PS format
044uploaded and zero based budget means that just whatever our revenue is has to match our expenditures we we don't spend everything we make because everything we generate because we need cash we have we've got to carry cash over because come July come June um those federal funds back there they're on reimbursement basis and although I got to say head is doing a really good job this year getting this PID quick June 30th we're going to end up because we have till June 30th cut checks then request that money in July um this past year I think 700,000 is what was outstanding from head so we've got to have the cash in the bank account to cover those checks so that's why we're never going to spend it's not going to be a use or lose
045it we want to carry funds over we have that risk premium of 400,000 do you know first thing in July we have payrolls and so we we like just a we never spend it all but we show them that yes this is how we're going to spend it it's zero based there's nothing left over salaries salary schedules are part of the budget and as is the calendar all right so that's all I have in this um so please ask questions or let me clarify things or two more times and then I will have gotten half of the information that and you'll see all this again when we do present the budget you know you'll see it again but um and other stuff that was very nice thank you for putting it in a yeah a
046PowerPoint presentation like that that way it's easier to grasp that way and it's nice to see the you know the function and all that yeah and then even within all those funds there are other functions codes and programs and you know Fine Arts has one activities have one you know and then on top of that we have to create our own because say at the end of the year we have to um report where we spent money on girls and boys sports so our our chart of accounts do account for any of that so we have to create our own so that you know we're not pulling receipts where we can pull a report on so there's a lot of things like that that we have to do um just internally but it helps us
047it it's it's easier to look at when we when we need to look for it what does pork stand for I don't know I think it's just the the slang pork FS maybe it do I was just wonder yeah I don't know I just think it's just appr the excess it's the excess money they have didn't necessarily start with a good pration it was kind of yeah that's what I'm saying it's just the ex like she t one I did not sorry that was good good did good I think the pictures with the plots of money something that in regards to like just a visual image of what that really got to me it does help and then it is so important too that we we share that because like that example I use here
048our buy was $200,000 bus but she only gave a 4% raise yeah you know um yeah it's different pots Lally we've got to communicate that out there because I guarantee before I worked for a school I didn't know of this you know I didn't know that title one could only be or you know rule there's lots of rules associated with each fund and we can't expect our um District our parents are you know you can't expect them to to know so we've got to communicate it and share the word on that local is that also include like property tax when where does that go into okay um I say three years ago with the whole Yi Martinez and that that lawsuit um what came out of there is that the state no longer can keep
049a portion of those taxes that we generate they used to we used to get 25% State kept 75 and but we we don't generate our property taxes but but think of think of other big schools you know or think of HS ours is um so now we put that in the 1500 fund so again it's a very small amount one of those on we don't touch IED but yeah I mean I'm always oil and gas we get almost nothing but then some of our other property taxes though are specifically to pay off the bond loans right so they only to put a Debt Service fund so that when we pay that loan it comes specifically so that yeah we we don't get much tax thank God for theg because I don't know I me think
050of Texas from what I understand you know if you live in a oh yeah know it is that's why I think that's one of the reasons they we went to SG to like literally equalize it because you had communities with like ritzy schools versus non- ritzy schools just depending on socioeconomic status of that micro community and granted their property taxes are much higher but that school those schools in the poor communities AR getting those so Equalization is is great yeah you'll still see it because you know they get don't even care about scg in this butk you thank you I mean you know questions later I you all have my number and happy Dan thank you this was a tutorial for me as well good you can turn it off start a new one because
051yeah we'll have to open up again yeah um so we can just recess for about minutes I don't know if I was supposed to make Mo have a motion for that