0014.01, our public comment session. And during public comments, any citizen of Kirkwood School District may make a statement or address the board concerning issues pertaining to Kirkwood School District. Period of time set aside shall not exceed 30 minutes. Board member wishing to speak must register their desire to do so. No individual will be permitted to speak more than once during this period. Speakers are not to address the board concerning specific personnel issues. Board members will not directly respond to a speaker during the meeting and the board establishes a uniform time limit of three minutes for each speaker. And we have one speaker tonight, Jennifer Ono. And it's on. It's on. Okay, great. Lean close. Got it. Okay, I'm looking at the timer. Perfect. Great. Good evening. My name is Jenny Ono. I work at Westchester
002Elementary School, serve on the executive board of K&A, and I'm a proud Kirkwood parent and community member. I'm here this evening to thank the administrative team and the board for their continued support of diversity, equity, and inclusion, Infinity Groups, and the Kirkwood Teachers of Color Mentorship Program. My experience with Kirkwood's support of diversity, equity, and inclusion, and access began after my children and I moved to Kirkwood from Hawaii in 2013. After being hired as a full-time teacher, I attended the February 2014 Equity PD day. Before that, as a parent of biracial children, I was concerned about moving to a new state and district that was not as racially diverse as where we came from and what that would mean for a predominantly white school district. On that February equity PD day, I was challenged to
003learn more and be open. I was relieved to see so many colleagues engaged in diversity work. And what I learned from that PD day was that my children would be taken care of by teachers who were working on themselves to create safe spaces for all children. I also learned that my experiences weren't the same as others, and I needed to listen and challenge myself in this new community. My children had good experiences in Kirkwood schools during their eight and 10 years. They both had teachers who were black and teachers in other marginalized groups who understood and empathi empathized with their experiences. Teachers reached out to them to ensure their happiness and success and cared for them. However, through their time in Kirkwood schools, it wasn't until high school that they found the only teacher who
004looked like them, the Chinese teacher. Our diversity work is essential for those of us teaching in the classroom and those responsible for hiring a wide range of teachers of color. Since my children have graduated, three to four teachers across the district now look like my children. So, thank you for that. I envision a future for our Kirkwood community that includes many teachers who reflect the world our children will live and work in. Our world continues to become increasingly ethnically diverse and our children should be prepared for that world by educators who support and believe that diversity is our strength as well as educators who represent the world outside our Kirkwood school walls. We are a district of pioneers. Pioneers push boundaries and promote bigger thinking. Pioneers champion change and growth. And when we embrace our
005mission and values, especially diversity, equity, inclusion, and access, we are being the pioneers our children need. Thank you. 402 approval of agenda. I need a motion to approve the agenda for the May 19th, 2025 meeting as presented. Moved. Andrews. Second, Gabby. All those in favor raise your right hand and say I. I. Those opposed. Motion passes. Section 5.01 consent agenda approval. I need a motion to approve the presented consent agenda items 5.02 through 5.19. So moved. Andrews. Second. Heburn. All those in favor raise your right. Say I. I. Those opposed. Motion passes. New business. 7.01. Financial statements for April 2025. I need a motion to approve the financial statements for April 2025 as presented. So move, Kathy. Second, Andrew. All those in favor, raise your right hand. Oh, sorry. We were on a roll, baby.
006Thank you. And and good evening. Our revenues in April, operating revenues were 3.6 million, and that consists of about 600,000 in current taxes, 600,000 in Prop C revenue, 869,000 in state assessed utility revenue, and then state revenue was 1.1 million. Our collection rate was 85.2% through the month of April and that compares to 84% last year. We budget for 97%. We should be close to that. We're expecting a large payment this month which should put us right at that amount. On operating expenditures for April was 7.2 million. Most of that is uh salaries and benefits. Um, finally, in our self-funded insurance account, uh, as you know, we've been watching this pretty closely really for the last few years, but more importantly this year, um, because claims have exceeded the the revenues, the premiums that go
007into the account. So, the past two months, the reverse has happened. So, we're we're happy to see that. We hope that continues. But in the month of March and April, we've added about 400,000 in total to the self-funded reserves. So, that's positive. We'll open it to discussion. Mr. Cathy, Miss Andrews, I got nothing. All those in favor raise your right hand and say I. I. Motion passes. Now we have um new business 7.02 O2 resol resolution for paid parental leave for support staff. I need a motion to approve the board of education resolution regarding paid parental leave for all regular full-time Kirkwood school district employees not included in the KSD ka collective bargaining agreement for the 2025 2026 school year as presented here from Dr. Fields. Oh, so moved. He burn second. Neman, good evening
008board of education community and colleagues. I sit before you as it relates to the resolution for paid parental leave. It was a pleasure working with the collective bargaining um unit and we did a great job of creating what we believe is a paid parental leave for certified staff. Having said that, we do have fantastic staff that consists of both certified as well as support staff. And so the resolution that you see in front of you would make it available for not only certified staff but support staff as well. Hearing from our support staff, um they work just as hard as all other staff and we believe this was something that will continue to help us both in the retention area as well as with climate and culture. Yes, thank you. Um Dr. Fields, just wanted
009to point out um in an email exchange that we had a little bit earlier today, um you were helpful in providing additional context uh as to the estimates for what impact this will have. Um I think for me it wasn't clear from some of the information uh what those estimates might be and how they might impact the budget. just want to point out that um you provided some additional detail that I thought was really helpful and I just want to make the make sure the community is aware that there has been a very thoughtful approach to making sure we're not only offering the paid parental leave to K&A members but also to nonka members as well. So thanks so for that additional information. Thank you and I appreciate the question he miss Andrews Mr. Kathy,
010this this will be something that we review just like the other parental leave and to ensure that we can continue financial stability with this. Absolutely. Uh Miss Andrew, given the fact that as a data person and many of us love having data to make informed decisions, absent of data, we have to look at things in a more conservative manner and so we will review as is the CBA is annual. We will look at that and we will also have hopefully some artifact data to let us know how we can make better estimates. Okay. Thank you Dr. Fields. Thank you for all your work on this and I just want to thank you for noting that all the staff whether it's certified or not. Um this is something that's important to all of them. So thank
011you. All those in favor raise your right hand and say I. I. Those opposed. Motion passes. Superintendent Board reports class size report 2025 2026. Good evening again, Board of Education Committee and colleagues. Madame President Motic, I heard you say a few times we're on a roll and I don't want to mess up the role. And so with this being an update, um I am going to provide only the information that has changed as it pertains to the last meeting up until this one. And so the first slide that I will go to is slide number nine. Slide number nine does provide some helpful information as it relates to the bolded areas. Essentially, the district is currently six students away from collapsing four additional elementary classroom sections and six students away from adding three additional elementary
012classroom sections. If both of these scenarios occurred, the district would have a reduction of five elementary classroom sections when compared to the 2425 school year class size report. In addition to that, I will go through each of the subsequent slides and I must make note um when we are in April, I typically just provide almost like the two early to determine um enrollment projections as it relates to staffing. Dr. Baylor does a great job with the enrollment piece, but the kindergarten mids number is what is presented. However, this point moving forward, I want to make sure you are also aware of the actual enrollment per infinite campus as of May the 13th. And so all of the information that is here, you will see the actual in um kindergarten enrollment is 56, but the midseries
013says 75. All other information is the same from the last time I reported. That being first grade, 70 students, 76 for second grade, 102 for third, 112 for fourth, and 104 for fifth at Kaiser. As we move on to North Glendale, 93 kindergarteners is what we have for Dr. Conference midseries projections. However, the actual enrollment per infinite campus on May the 13th is 75 followed by 84 actual for first grade, 79, 101, 99, and 103. As we move on to Robinson Elementary School, the mid series shows 62 projected for kindergarten. At Robinson, the actual kindergarten enrollment is 44, followed by 67 in first, 74, 90 in third, 77 in fourth, and 73 in fifth grade. As we proceed to Tilman, 63 is the confrer projections. We have an actual kindergarten enrollment as of May the
01413th in Infinite Campus 52 followed by 61 in first grade, 78, 80, 79 in fourth, and 86 in fifth grade. For Westchester, we have 75 for the actual Dr. Coffron's midseries projections. As of May the 13th, again in Infinite Campus, we had 49 followed by 75, 110, 87, 93 and fourth, and 120 fifth grade at Westchester. This next slide, slide number 15, shows the updated elementary sections by school and by grade. You see the 126, and this time last year, you would have seen the 130. So, we are at four less sections this time of year as opposed to last year. This information for slide 16 is pretty helpful because it provides you not only the actual um average class sizes by the actual school as well as the actual grade level, but the notes
015section in the last column to the right provides the additional context that I was referring to. For instance, at Kaiser, you will see minus two students away from collapsing a section in third grade. That is essentially if we were to lose two additional students from enrollment at third grade, we would need to collapse a section. As is the case before I proceed, when I say collapse, that is only the case until the July board meeting. After the July board meeting, we have adopted a process where we will not collapse a section irrespective of what happens with enrollment, but we could in fact add a section. You will see the subsequent information for North Glendale, Robinson, Tilman, as well as Westchester. As we move to slide number 17, you'll see the updated elementary students. And again,
016the uh mid series for coffin is what we have for kindergarten. We'll do that probably one more time and starting in June, we should have a more accurate depiction as it relates to our actual kindergarten. And slide number 18 is a new slide um because as we take a closer look at kindergarten sections, you will have in the first column the actual students at the respective elementary schools followed by the actual kindergarten number, the midseries for coffin, the difference between the midseries and the projected and then the percentage difference. For secondary, we do have our numbers for sixth, seventh, and eighth for both Knifer and North Kirkwood Middle, followed by the flagship being the high school, 9th, 10th, 11th, 12th grade, as well as the total. At this time, I'll yield over to Dr. Orick
017to see if he wanted to add or mention anything before I turn it back over to you, Madam Mo, Madame President Motica, for any additional questions. Mr. Kathy um given the trends with with Coffron and we talked about the on deck program last year there's is that in place still and just given where things are going it doesn't look like they'd need to be used if they were but I was just curious on that program itself so the great question as it relates to the on deck that was a pilot for this current year it is not currently in place for next year there was a process created where those folks that were on um one-year only contracts had a chance to um interview for the various positions that we did have open. Um from
018there, we essentially don't see the need as it pertains to right now. However, if we need to revisit that, we certainly will. Okay. And then I know you've got this down to a science with kindergarten enrollment at this point in the year. Where's where are you feeling like we're kind of on track with years past give or take? like we're kind of tracking where we have or is there anything we just need to be aware of that we're either ahead of schedule or significant behind because the information is critical to you to be do your job. So absolutely and so I get nervous in April and May every year quite honestly. Um but as it pertains to June we typically have a little bit more data and for some reason between May and June we
019do see a uptick in terms of registration. Um, I won't put the particular school on the spot, but historically, one school has been lower. They're actually higher this year. And then another school that has been relatively higher is actually lower. And so, I think we'll be in a better position to u make some additional um projections or analysis as it relates to ne as it relates to next month. But for right now, I'm not celebrating yet. Um, we're still knocking on doors, so to speak, at the elementary level, making sure we're getting people um registered. Um, but if the numbers stay as they are for next month, then it'll be different conversations. But what I'm hear is we're not like critically behind schedule. No, not critically. Not at this time. Okay. Thanks. You're welcome. Miss
020Andrews. Hey, Dr. Fields. Thanks again for all your work on this. Um at the key volunteer meeting um we had heard from some parents from North Glendale um in particular um about about a section um third grade. It's a third grade going into fourth grade. So, I um had done some looking into that and um went back to last year's June 24th, 2024 slide and they had the same number of kids um that they have this year. So, they had 99 kids um last year. Sorry, I'm pulling it up. Um and um and so How many sections did It seems like they had five or four sections or five I guess five sections that year this year. Um and and now we're going to be collapsing a section possibly um and it's the same number
021of kids. And so I just want to kind of understand that. So when you just to be clear, are you saying last year was third grade or this year's third grade? So I don't know. No, this year is third grade. They're moving to fourth grade next year. Gotcha. Sorry. Oh, no. You're I know. It's like it gets Yeah. So um certainly understand that as I'm looking at slide 11 and slide 16. In this particular instance, we're looking at the third grade being at 101. And if we stay exactly where we are at 101. Um Oh, wait. I think Are you looking at Sorry, you're looking at third. You're looking at rising third graders. We're looking at rising fourth. Sorry, Dr. Fields. No, you're you're fine. So this particular slide for slide 16 um we look
022at that in terms of ideally we wouldn't have to collapse a section. I think it does vary. However collapsing a section would be based upon if that 99 stays at 99 they will be fine. But if it goes up that's the piece where we might have to add a section. Now, if it's at 101, which is what I was looking at as an example for the current third grade, um we would stay where we are with five sections. It's just if we lose two additional students through enrollment, it would go underneath that 100 threshold. And in that particular instance, we would have to collapse a section. Ideally, that wouldn't happen to after July because if it's after July, we don't have to collapse. Okay. So then I think that there might be confusion. I don't
023know if if um Le Lisa or someone else I think that that the parents were thinking that there was going to be a collapse um and you needed two two more kids to expand this section for current fourth grade. We do I'm sorry. Go ahead. Oh no. I didn't know if I was allowed to talk in a turn. But um so I think the the issue here is that for the fourth graders, this is for 2025 2026 school year. So the fourth graders currently they're at 99 and that's where we see them go from five sections to four sections. You can't see that change in this particular slide, but they've gone from 101 students down to 99 students. Just happens to be the numbers the same year though different school years. Yeah. Um but that's
024the that's the question. lost lost two students and so they're the they're not getting a fifth section which they currently have this year and Gene Maria you but they didn't lose two students because I'm at looking I have June 24th of 2024 data pulled up and it says I would be looking at their third grade section for that year because they were in third grade and they had 99 students. I have to take a look at it. It's fine. Okay. Yeah, I know that. I'm not sure if it was North Glendale. I know that there was a particular school where they moved above the threshold. I want to say Westchester for sure. That may have been one more. They moved above the threshold um after a particular um time, which would have been July. And
025then they lost a few students. And so what it looked like was they were able to have more sections, but that decrease changed after the July board meeting. I'm not saying that's the case with North Glendale. I need to pull up the data to look at it. But you know me in terms of a stickler for parameters that we have in place. Something had to have happened in order for it to be under a hundred and still have five sections as opposed to four. Yeah. Okay. So if you don't mind just because it's hard to have those conversations when and I was looking at the data and I'm like oh that's 99 and they're at 99. So, if you don't mind, um I work with Steph I work with Steph Libertard and be in touch
026with her to learn a little bit more about it and certainly if you or um Miss Ne have some u Miss Nemani has some information that you can send me. Okay, that'd be helpful. But I don't mind reaching out and having conversations with Steph. Okay, great. And then the the other thing that I would just say is um I would just make another attempt to um push us in the direction of right now currently we base our class sizes on um numbers and I like I get that and I get from a you know fiscally responsible aspect I you know think that that's, you know, where we've been. Um, but I would just ask if there are other factors that we can kind of add into that um that make it a little bit more
027dynamic and make it more um able to meet the needs of all of our students and all of our staff and um got it. Thank you, Yeah, I'm gonna build on a little bit of what Miss Motica was or I'm sorry, Miss Andrews was speaking to. Um, so I I definitely look at part of my role here, a couple of my big responsibilities are, you know, being responsible to my community and representing their priorities and values and then also making sure that we are following the strategic plan and following our stated mission and and priority goals. So with those in mind, I know we have some priority goals um around equity. I know that that's something that our community has repeatedly spoken to as very important and you know over the past three years that
028I've been kind of paying attention to this conversation. So um I've consistently seen a lot of these conversations pop up. So I also was at that key volunteer meeting. Um and one of the things that these parents were speaking to was the needs of this particular class due to you know challenges. Um I know that in past years we've had some conversations that came up with um academic benchmarks some different pieces like that. So when I think about that in the context of equity and just to like pull the classic example of you have three people trying to look over the fence at the ball game, right? You don't give them all the same box. You give them the box that they need to be able to see the game. And um so with that
029in mind and looking at this and in our process and everything, you know, I know at one time or another almost all of the board members have spoken to a desire to look at our class size policies and how we can, you know, look at that. And I think I fully realize that that kind of deep dive is going to take time. So realistically, that's something that's, you know, whether that's tied to our strategic plan, our next strategic plan, um or it's happens independently. That's a year or possibly two out. So, you know, when I think about this past year, this administration made a really great impact with tweaking the SOP, right? When you changed what triggered adding a section, change not collapsing sections after July. like those were such powerful impactful changes and it
030really just makes me wonder if there might be more we can do in that arena and have kind of that positive impact. Um and so you know I don't know if that means we start out at KSD class guidelines and we don't collapse sections until we're below DESIE recommended class sizes. I don't know if we formalize a process where um building administrators can petition for something that falls within that range for a particular class, you know, specific to student data. Um, you know, and I'm just generating ideas as examples of just kind of the type of flexible thinking that I think may be beneficial to our school community. Um, you know, and I do want to say that I recognize how important some sort of standardized process is, right? I'm not advocating for the Wild
031West and chaos and like throwing money and having class sizes that are 10 kids and class sizes that are 80 kids, you know. Um, but you know, even if you look at these numbers, so you know, speaking of the fourth grade class at North Glendale, like those fourth grade classes have 25 students, but the fourth grade classes at Robinson and Tilman have 19 or 20 students. So even within our current standardized process, there's already variance. So I I guess what I'm just asking is if we accept that variance is just going to be like part of the natural state of things, is there a way to kind of wield those variances a little bit more and um you know tweak our S SOP for the next one or two years until we can do a
032deeper dive to to maybe address some of these conversations that that come up. And so I I guess it's it's more of a comment or it's a question about what more can we do? Um, you know, and I I also want to clarify that I'm just really passionate about this. I I fully respect the great work that this administrative team has done. And I mean, if I've learned anything this past year on the board is that, you know, people see this much of the iceberg of like how much goes into every tiny decision and the ripples of the things that it impacts. And so with full respect for that process, I do personally feel really passionate that this seems like an that we could probably tweak and make a really big impact for our um
033some of our school communities and families and students and teachers. And so that's just um you know something I want to speak to on the earlier part of this process as we're in May. Um and just throw that out there for consideration. Absolutely. And not just um to you, Miss Heern, I appreciate it. I I also appreciate the perspective as it pertains to the board's desire to look at some of these things. Um I think it's a an opportunity certainly to collaborate just as a reminder um this particular report in its infancy was more so just to look at staffing and you can't look at elementary staffing without looking at class sizes and seeing how many teachers u we need. I respect um the the great work that some of my colleagues are engaged in
034not only with Dr. Olri who credit to Dr. Olri for um shifting the SOP but also with Dr. Bailey and Dr. Grana in terms of class sizing, the the class sizes, the impact, etc. So, I think it's a opportunity for collaboration and if you know with the superintendent's direction, if that decision is made to shift class sizes or what have you, um just be reinforced that the staffing for those class sizes will be something that we're looking at. But again, that's a lengthier conversation with multiple individuals, not just myself. Thank you. I really um appreciate Miss Heburn and Miss Andrews comments and input. Um I would also double down on that concept of re-evaluating the class size um criteria to look at more than just number of students because of course as we know class
035sizes very much impact the students ability to learn and to have an effective classroom setting. So that's that's very important. Um what I would really encourage is us to move fast. So move faster than we've been if we've been talking about this for several years. I would hope this is something we could prioritize and work together to move forward in a place where in a kind of a timing that best impacts our students. Um, I'm curious if any work that's been done to date as these changes have happened in kind of the procedures for developing class sizes and numbers of sections if we've looked at any other factors or look to other districts um in terms of what they do to determine the appropriate class sizes. Glad you asked. As the person that went through
036a very comprehensive um class size analysis at the direction of Dr. or I don't have the particular date and month for the board meeting, but I'll make sure um you get that either from Dr. Orick or from Laura. Yes, there's a um an analysis that looks at not only our comparison districts, not only Desi, but what would happen both from a budgetary standpoint as well as from a space standpoint in the various buildings if in fact we adjusted class sizes. So that report does exist. Again, the data is based off of data at that time. Um and again, we can certainly look at that, but that has been plowed as Dr. Overwood said. Yeah, it's interesting to me the of course the impact to the budget is something that we'd consider and you know would
037be important for us when thinking about class sizes but we did note um at least for now it looks it appears as if across the district there would be a net reduction if all stayed the same over the next couple of months there'd be a reduction in of the number of educators of by five. So, I would imagine that that might be something to Miss Heburn's point of, you know, what variables do we look at to determine what's right districtwide um and in the individual situation. So, kind of at a macro level and then really at a micro level and evaluate then and and maybe a more robust process for how we do those evaluations um could be beneficial. Agreed. Thank you for that. That's all. Thank you. Thank you, Dr. Fields for bringing all
038of this to us and to all of my fellow board members for again raising the concern and the question. And I think um that one of the things going forward that might be worth considering um is since we do have essentially extra teachers um if we're talking that we might have to collapse five sections um ways that we could not collapse all of those. I also just want to go back to an email on um June July uh January or December 20th. I know one of the months, one of the 12th um you know December 20th where we were told that we needed to um reduce our staff by nine staff through attrition. And so I I just I get that it would be something to like, yeah, you know, not get rid of these
039staff, but I'll be honest with you, I also have that email in mind where it's like, yeah, I want to make look at class sizes, but we have an email that tells us that we need to be reducing um our staff through attrition. And so I am not comfortable just all of a sudden um I feel very conflicted on on kind of like just pulling that that making that decision because I mean and I just do I want to be clear as when we say cut staff we don't have to cut staff right now like that's something that our team with finance and HR we've been trying to project as much as we can project so no one is being let go So, I do want to make sure we're clear. I know. I am
040sorry that I again, it was just as a board member, we did receive. So, I I appreciate you correcting my my wording on that so that people don't panic that they're getting cut. Um, it wasn't being cut, but through, you know, retirement and that kind of thing. But with that being said, um, you know, it's kind of understood. Mr. Cathy, did you want to finish your comment? Go ahead. Okay. I I just I see this as, you know, we're going to talk budget here in a minute. I think we're in a I've talked to I think everybody about this point that I feel we're in a a new environment which, you know, is created by this now that we the year trend from the Cochran data where we see enrollment going down. And I think
041just speaking to the board members, we we need to really wrap our heads around what that environment looks like now because um I don't want to take just I think it's great to kick ideas around, right? But what it would look like if we did something now is to your point, we're not cutting anybody, but it would pivot us into a situation where we need to go out and recruit and then hire new teachers to fill those positions, right? Like that's what it would actually look like this year. Like we would have to go find new teachers to the five sections that are now being not pulled forward into next year. That and or this is nerves, but if we didn't make the kindergarten sections, then those folks would. So, it's all tied in. But
042to your point, yes, it's a complicated. Yeah. Um, I I I'm all for it and I think there's an appetite to definitely keep looking at this, but I think there's just this is my plug for like a larger conversation about as we start looking at operating reserves and what we're going to hear more about tonight. Like really coming up with kind of a vision that we have as a seven member board about what we we want to do there. We're in an incredibly I'll hit a few of my points I was going to say later. We're in an incredibly strong position financially and um but we just need to see in this new environment where enrollment is going down, how do we how do we view that and rep prioritize things. So I'm rambling. I'll
043be quiet. Yes, Mer. I'm sorry. I'm going to be one of the other people saying I just want to be clear for our community's sake that when we talk about the attrition, I I always get nervous because I don't want to give the wrong you know to Mr. To Cathy's point, we are in a strong position. And what we talk about with these nine positions, that's over the course of the next, I believe it's three years, four years, four years. So, we're looking at nine positions over four years. We're not um I don't think there's a strong concern that that's not going to be able to happen naturally. And so, I just want to make sure that we're not, you know, um raising alarm that doesn't need to be alarm. and and you know when
044I'm looking at these things and not collapsing sections it's you know if North Glendale if these rising fourth graders have five sections this year can we carry those five sections forward that kind of thing not major changes are there tweaks to be made but I just again want to be clear four years nine positions it's not like we're kicking people out right and left yeah go ahead just want to add as well I think it is important I think um Mr. Mr. Caffy, you made a really good point of the ripple impacts of these types of decisions and that they can't be made in a one-off way. We really have to be thoughtful about what is the right process and what's the right approach for us to make these decisions so that we have the
045right framework in place rather than gosh this looks like it's a lot of students in this section for this year. Let's add more. Um it has to be a really thoughtful process but we have to make sure that that process works across the board. Um, so you know if it's not if we see continue to see situations in which it's not working for this and it's not reflecting appropriately what we're intending for that then we have to change the policy in the process. So I think that's what I'm advocating for is um just a more thoughtful look at that intentional look at that process. Thank you. I would say that yes you know the nine sections it's over three years but Mr. Rome's budget is built on us following the class size guidelines. Correct. Yes.
046And so the if we don't follow the class size guidelines, it it impacts Mr. Rome's budget and changes his entire budget. And so this has been a very good discussion. Um, I I think to to wrap up what I was trying to say before everyone jumped in again. No, that's it's good. Is just you all you all have a much better sense of what adding a section here or there or not collapsing a section here or there, what that means in the whole big picture. And so There are some concerns from North Glendale and Westchester this year. Other years it's been other schools and other concerns. You know, I just it I'd love to know some possible ideas that won't throw everything out of whack. Um and just you know again you guys are the
047experts here and I for one rely on that and so if if you come back and say here's something we could do this year. I would love to hear it and I think the board is open to hearing possibilities. You know this isn't a directive to say we've got to change this now. It's just let's look at it. So, thank you very much. Thank you for everything you do. Okay. Thank you, Dr. Olrich. Anything else on this? Can we the the What's the takeaway from this? We can summarize it. So the that the takeaway that I'm hearing is is that that this board of education to have an impact on the 25 26 school year is looking for uh maybe any any any recommendations that would be a I'm going to always say this going
048to look at micro main icon when I say that would have to be fiscally responsible that would be is there any is there any um impact like again like a year ago it was mentioned like a year ago in a change in an SOP um uh and if there is um uh then that would be something that I would bring forward to this board and if there's not I would say to this board there's not that's the takeaway I was taking Mr. Yeah, I I listen, I'm all for ideas. I don't know that we have like there's just so much more information that I would want to see like a lot like I want to like ultra emphasize that. Do do you feel confident? So, let's be honest, there's a time constraint here, right? Like
049do you feel confident that well I guess my question would be that that's taken into account like there there would need to be a lot of financial information that would need to be reviewed by the board and again to impact the 2526 school year. Um I I don't want to throw cold water on this thing. I'm I'm all for I'm just worried about the timing and and us making a decision as a board. So that that's where my hesitation comes. Well, and if if if I may, Miss Montik, what I would also say, Mr. Cathy, is we also have a transition in leadership in this district going on as well. And so um and so I want I want to make sure I'm always mindful of that. Um because I would want I would have
050wanted the person who I followed to to be mindful of that as well. Um, what I can tell you is, um, that's why I was very clear to say if there's not a pathway to do it exactly the way that you're describing, I'll say to you that there's not a pathway. But I can't say that with 100% confidence because I haven't met with this group of professionals that I rely on and trust. Um, and we'll begin that process. My guess is there's some wheels spinning already back here. Um and and and we will have that conversation and that conversation may be very short and and I may put something in the board update that says guys we just can't do this. It's it's May 19th 20 21st 23rd we just can't do this or um
051if I believe there's a pathway um I would bring that to the board for the board's uh for the board's review. Yeah. And just to be clear like one and so I'm understanding that the can we do this the can we do is are we in the position where we would just say at no point further we're going to collapse any sections like is that what we're seeking that is that the idea I mean if I if you if you're asking me what I am asking of the of the team which I I mean I will tell you I'm I'm thrilled just to hear the idea that you guys will meet and brainstorm a little bit. Do you know what I mean? I I think last year I mean I it was midsummer. I don't
052know. It wasn't it was another situation last year when it was as simple as okay we're not gonna we're not gonna um wait till all you know 50% of the sections are above guidelines. But you know is there some lowhanging fruit here where the couple classes that maybe have some extra needs and we can give them a more equitable access to a positive academic experience. You know is there something there, especially when, you know, if we're looking in terms of the teachers do already exist, you know, I mean, I I I don't know what it is. So, I'm not asking for you to solve the whole class size thing and and I will fully respect it if your email says, "Hey, we looked at this and like there's no way to do this without our
053budget taking, you know, a hit that we can't take." I'm wondering, is there something here, a tweak like we did last year that moves us just one more step forward, you know, and and if it doesn't exist, it doesn't. and I will fully accept that. Yeah. So that's if that answers your question, Mr. Cappy, like I I'm not Yeah, I I I get I get you. And again, I don't want to undermine this, but I would The only thing I would say and then I promise I'll be quiet is like I I I feel strongly is I've expressed to a lot of board members that like I really think we need to make sure we we all are on the same page or have a vision with this new environment that we're operating in, which
054is decreasing enrollment and what that means to everything that Mr. Rome is about to talk to us about. So I think that's a that's a big piece of this as well. Um and I would just ask and I have trust in everybody that we'd work with on that that that's got to be a discussion with this as well if that makes sense. So um I would just say that we are slated to approve the budget and the budget is based on following the current class size guidelines. And so I um you know I'm asking do you you know we're hearing the preliminary budget tonight, right? Um and so um I guess if this change is going to be made then would we have another preliminary budget hearing and a then another um type of meeting,
055you know. Well, the one thing and again I whenever I talk about the budget, I always make eye contact with Mike um is just as a reminder um that uh the budget that is the preliminary budget that is being given to the board um obviously Mike works that independently and the commitment was it was actually for flat staffing this year. And so at this point um you know with the attrition that we saw if you'll recall it was flat staffing this year then three the next fiscal year and then so on for two more fiscal years. Um, so, uh, at this at this point that that we would take that into a consideration or anything that we may or may not bring, um, uh, bring back. And again, there's there's no easy fixes. I really
056appreciate that. Um, is there something is there a a little tweak? I'm not even going to mention anything out loud because then that becomes a thing that we're doing. U, I certainly have learned that as a superintendent. is uh but what I can say is we have a group of folks here the same group that I went to last year and and said hey are what what what can we do here uh and and we were able to come up with something that that did impact it. The one thing that I want to say before we move we move away to too more this is I want you to really take a look at that slide that is up there right now and I want you to think about the class sizes that we're able
057to offer for our for our teachers and for our for our families and for our kids. And so I I I don't want that to be lost in the conversation as we continue and strive and this board demands that we get better and better. The demands of this board to get better and better. Guys, I know what our class size guidelines are, but when you see where we are below those guidelines, because the commitment that this board has made in terms of the standard operating procedures of when we add another section, guys, I I would put that up against any school district in this state in terms of the class sizes that we have for for our for our kids. And so we will continue to be pushed by this board because we all are
058committed to giving really the best environment for our teachers and uh and for our kids every single day. Um and as I tell people, if you give us something to solve, my money is on these folks right here. And so um again, my commitment uh Mr. Kathy is is we'll take a look start even just some brief preliminary conversations and if that is just not anything we can get momentum on I will tell this board specifically we cannot get momentum on that. Um the other thing I I will also say is as we are moving into um really these last five or six weeks as me as the superintendent I do think it's also appropriate to say to this board I will also consult with Dr. Trumpus and uh uh because ultimately um the the
059the budget that uh that he is going to inherit is the budget you're going to begin to hear about tonight um uh in detail from Mr. Rome. Uh and uh and ultimately that's the budget that he will be interacting with the board and with the district on. Um and so that will also absolutely have to be a step as well. So my commitment to you is if there's a pathway I'll describe that pathway um it will be done with with the full um uh you know with the full consent and and informing of our new superintendent um and all the way over I'm leaving open that gap to say for that to say we just aren't going to be able to make the impact um and as you have said and as we are going
060to hear uh the district is in a very strong financial position uh again thanks to the work of of Mr. Rome and working with this board. Um that will give this board the flexibility um too. You've heard I've heard mention of the strategic plan already, right? This next year you're going to be working on that strategic plan. There's going to be flexibility for this board um to make an impact on kids really PK through 12. Uh and and and I'm excited to see what you guys do. Um, Miss Bautica, can we also then look at, you know, we've heard, we saw that our principles, our middle school and our high school principles ask for some staffing. And so, um, they have some staffing needs due to class sizes and that kind of thing where, um,
061you know, parents aren't really aware of that kind of thing. So, um, if we could, we rely more on our principles for that kind of feedback. if we they could include um those those staffing changes too. Great. Thanks. Just one small thing. October October the 30th, 2023 was the elementary class size guidelines report. Miss I just emailed you that particular presentation. So you'll have it. So the board was asking where do we at least start? There's a lot of rich data there that I'm pretty sure we'll be looking at as well. Thank you very much. as has been advertised. 8.02 preliminary budget. Good evening again. See, let me get this slide up. Um, yes. So, as uh as advertised, this is the preliminary budget. Um, so we will discuss it tonight. A couple funds, uh,
062operating and debt service. Uh, but certainly you can ask me questions about any other funds that you may have. Um, we'll discuss this tonight. We'll discuss it again on June 2nd. That's the work session. And then we have to bring a final budget for approval on June 23rd. So, as mentioned, I'll talk about the operating and debt service funds. The rest of the funds we'll cover on June 2nd, but uh again, if you have any questions about any of the the other funds, just uh please ask. I do want to thank Scott Harmon and Shannon Norlup and the finance department for all their help with putting this budget together. Uh they help me each and every year. They also serve on our budget and finance committee. I want to thank that committee as well. Um,
063as you see, they provide guidance with putting together the budget and with the projections and with just the performance, sustainability, all those things. They also provide a community perspective. So, I want to thank them for their time and their expertise and their help each and every year. So, first we'll discuss the operating revenue budget. The the big thing that I want to point out first is our state adequacy target. That's part of the state formula. That's the main part of the state formula. And back in February, Governor Keithho's uh state of address, he recommended or proposed that we would not increase the SAT to keep it flat at 6,760 students. Uh but just over a week ago on on May 9th, the state legislature approved increasing it to $7,145 per student. So that's a pretty
064significant increase. That number comes from DESIE. So it's it's a calculation that DESIE uses to determine what schools need. Um so that first started as their recommendation and as I had mentioned it was is passed by the state legis legislature. Um, so now the governor has a few options. He can sign the bill. He could veto it and that would then send it back to the state legislature. They could either veto it or they could um override it. Um, and if there's no override then um then they would have to call special such and to uh work on the budget again. Um and then finally, the governor could um sign the bill and then withhold funds during the the fiscal year if the state runs into any kind of financial trouble. So that's that's the
065third option. Um but based on what we have right now at this point, uh and the indication that it's likely going to be signed, uh we're using $7,145 per student in the formula. And so just to show what that difference Oops. See, sorry. So just to show what that difference is and how it impacts the budget. Um you see that first column of numbers shows uh the revenue projections with the 6,760 SAT. The next column is the new number 7,145 SAT. And so that difference is about $2.3 million. that increases next year's budget. And so, originally, we were expecting $96 million in total operating revenue. That's an increase of about $2 million or 2%. That's uh what was presented to the budget and finance committee and what we worked through um over the course of
066the last four months. Uh but with this new information, the revenue budget is now projected to be 98.3 million. That's an increase of 4.1 or 4.4 4% compared to this fiscal year. Um, the one thing that I do want to point out is we were originally projecting a a decrease in state funding because of fewer students. And so the decrease was 136,000. So when you net those two together, the increase in the SAT minus the original decrease, it's really an increase compared to this current fiscal year, 2.1 million. So that's what you'll see as an increase in the revenue budget. The SAT adds 2.3 million, but we were expecting fewer students, which drops that increase compared to this year to 2.1 million. Make sense? Okay. So then looking at the projected revenues again, 98.3 million,
067that's an increase of 4.1 million or 4.4%. Uh so some of the significant increases, this isn't isn't all of them. These are just the s significant ones. Um the top one is current taxes 1 point about 1.8 million. Most of that is from reassessment and that's because of the CPI we know is 2.9%. So we know that revenues property revenues should increase by 2.9%. Assessed values preliminary assessed values were about 20%. Um, so what that means is when it comes time to set the tax rates in September, our tax rates will have to drop so that we only collect a 2.9% increase in revenue. So we know that potentially residential rate is going to drop about 45 cents. Commercial rate is going to be much larger. Uh, but again, it's it's it's working through the
068math to make sure that we only collect the permitted increase, which is the 2.9%. Some of the other increases include um 526,000 from new construction. There's a decrease from the senior homestead tax uh credit. And then there's also an a net decrease in the recruitment rates. So, that's all factored into current taxes. Below that is the increase that I just talked about with state funding, 2.1 million, 355,000 in state transportation aid, 202,000 in early childhood special ed, and 134,000 in Prop C revenues. some of the revenue decreases that we're expecting. Uh the main ones 298,000 in investment earnings and and that's because interest rates are dropping. Uh we are currently collecting or have been collecting about 5 a.5%. It's closer to 4% and really that's what we're projecting for the next two years is 4%.
069So that's why that decrease is in there. And then 305,000 in federal funds. Um these are some decreases that we were expecting. There was some um COVID funds that we received in the beginning of the year that were really for the prior fiscal year. There's lead testing funding that we received. So there's some one-time things that we received that we knew were going away. Um there's also some decreases just because the number of students that we're serving are going down. So like the free and reduced reimbursement, free and reduced meal reimbursements that we received. As some of those eligible students decline, those revenues go down as well. So looking at this graph, our local revenues make up about 85% of our revenue budget. And you see the main categories off to the right side which
070are current delinquent taxes, Prop Cy, M&M sir tax, investment earnings and food service program revenues. State revenues are about 13%. Biggest one is the formula payment that we receive but also early childhood special ed and transportation. Um we do receive some federal funding and county funding. The county funding is state assessed railroad and utilities. That's the bulk of that. But both those federal and county relatively minor at about 1% each. Any questions about revenues before I move on to expenditures? I I have one real quick one. Does anyone else have one? Okay. The the senior homestead tax credit. That's the freeze that seniors can request. Yes. Gotcha. Yep. Thank you. Prefer to split them out. I don't mind. I'm fine with taking questions now if you'd like. Let's get crazy. So um so my questions
071are around my ongoing education on the the state adequacy target. Right. That's right. Okay. Um so I appreciate you you giving us the the history and the presentation of the the impact. So it's a big variable right in in the way this gets presented. So, in the short term, does the way that we you plan for where that SAT is ultimately going to come in, and I know we have a a good friend in Jefferson City who's doing everything that he can, but um he might not have enough coal yet. Um will will that how we factor that impact anything in terms of like what we're planning to pay for this year? No, because the expenditure budget was already set. Okay. And then we got news really just a week ago and then I worked
072on revising the budget document itself by just adding that revenue. So only that revenues has been added only on the revenue side. No corresponding expenditures because we started with it being flat. Right. Okay. So I want to make that point because again I'll reiterate we're in a very strong position. The way that we look at this is really more how we look at our long-term view. Um, so is it accurate to say, and again this is from my own education, that we traditionally budget with a flat SAT. So having faith that it's going to be fully funded would be an is that a new kind of view in terms of how our budget gets put together. We really take our guidance from DESIE and what we hear from the state legislature. So DESIE has over
073the years has projected what they thought the would be or should be. And for example, a couple years ago is when they put out these numbers, the 6760 for this year and they were also projecting 71.45 for next. Uh we talked internally and with our budget finance committee when we looked at long-term projections knowing that that was a significant increase jumping from 6760 up to 71.45 45 that that was really significant that we didn't want to put that in the projections just yet. But normally we would we would rely on what DESIE is telling us including that it's going to be fully funded. Mr. Cathy, I I I do want to give a little bit more um I'm going to I'm going to channel Chad Kavanaaugh a little more temperature and color to that. When
074that was passed, Desi made a recommendation a couple of years ago to do a two a two-year stairst step and to increase the state adequacy target which had not significantly increased for about 20 years, lagging very far behind inflation. And so they made that recommendation, Desi did, and a year ago the state legislature passed the increase that we we have in this the current fiscal year's budget, the 6760, but they also made a recommendation for the 7145. a year ago, a year ago when that passed, there were state legislators that were saying, "Well, we'll pass it, but there's no way we're going to be able to fund it." That the next increase. And so, I will tell you that when when we were doing that and that passed a year ago, and and Mike was
075factoring that in, Mike will remember this. I went into his his office and I said, "We're not putting a dime more than 6760 projecting anything forward until we figure out what the state legislature is going to do in 2025." Then Governor Kho and in his February state of the state address came out and said we will not be beholden in his recommendation for the budget. We will not be beholden to a year ago's um legislature putting this $300 million increase in the budget. So that looked like the right thing to do. Um but lo and behold working through um the the budget reconciliation process I think Steph I'm using that term correctly through that process um that what was what was happened is there a compromise was reached and that money was and that money
076was was passed. I would have told you all the way up until about May 7th that that wasn't going to happen. And so um ultimately yes I do believe um we've not been given any reason to believe at this point that the governor won't sign that. Um but I will tell you that um the result of that um the result of this and where we are now in terms of our expenditure budget like the salaries being set and things like that that has been what has been set based on that what we had every reason to believe would be that flat 60 6760 and so um ultimately do we believe this will be uh will be funded for uh the fiscal year 26? Yes, we do believe that. Um have there been times in the
077past um where the state because of the budget has had to prorrate. That's what they call it, the proration factor. Um, I kid you not, in Colorado it's called the budget stabilization factor. So, yes, it is called the BS factor. Um, and so yes, if they don't have the they can't fully fund it, um, then they just do, you know, like a they give you 93 cents on the dollar or 96 cents on the dollar or something like that. U, but we have every reason to believe, um, that that is the new floor for the state adequacy target and that's what they'll be working for um, moving forward. There's not in any time in the history that at least I in my now old 30 years where I where the SAT has gone backwards. So
078So it's it's just raised the floor again. Make I forgot to make eye contact with Mike. Yep. Yes, that's all correct. So raising the floor but also to the best of our knowledge what information we're taking in but then fully funding it too. That That's correct. So um that helps. Thank you. And what I'm hearing is that it, you know, this variable, it's good to look at that for long-term projections. It doesn't change anything that we were planning to do in terms of 2526 in terms of expenditures. But I think it's important, you know, forecasting is difficult. You want to go up on the best information that we have at the time. But again, as we talk about what we just talked about and the other things that we talk about, when we look at
079these operating fund projections, we're doing it with with that in mind that we feel like is going to happen out of Jeff City. Um, and that's something I think just as a board and administration we need to keep an eye on. I'm sure certainly that we will, but that paints a pretty big part of the context of of all this in terms of how we evaluate what our resources are um going forward. So, um, yeah, I think I'm good there. Thank you. Okay. So, I just want to make sure I'm understanding this. Um, so your projections are going to be based off the 67, no, the 7,145 per student. Okay. Um Um, how often in the past have we had the um, you know, the BS Yeah, that's um it's it's happened in the past
08015 20 years probably five, six, seven times. Okay. Hasn't happened probably the last five years, I think. Okay. But they've told us that they're going to do that. Correct. No, they haven't said that they were going to prorrate it. Well, but didn't the governor make an announcement that yeah, we may pass it, but we won't fully fund it? I have not heard that. Okay. Yeah. Okay. Um, could we um Yeah, I guess it makes me a little bit nervous. So let me just make sure that I understand that then with the projections each year of those projections those projections include funding it at the seven whatever number. Yes. And so it would be if it doesn't get funded and they don't raise it to the seven it will change our projections significantly. it would depending
081on how much they reduce it by. Okay. So the of course the greater reduction then yes it's going to impact it. So the it's something that we should look at each and every year. Yeah. So I guess what I'm you know like they've never decreased it in year 30 years but it's been the same for 20 years. So I think that um well no they've in they've increased it. Okay. They've never decreased decreased it. Okay. in. So, what's not factored in over the next 10 years is any more increases. When was the last time that they increased this? Well, this year they increased it this year, but prior to that, uh, I'd have to look back, but there was several years of increases, but they were relatively minor, right? Less than $100. And so, they
082increased it about $400 this year and almost another 400 for next year. So, two significant increases back to back. Okay. So I guess where um you know I know that you have always kind of been conservative um in your projections um and so um what is the budget and finance committee's thoughts on this happened after we met so so I sent the information to the budget and finance committee that it was signed into legislation legis by the legis legislatores and approved and it's waiting on the governor's signature. Um so sent them that you know we fully expect that this is going to go through for next year. Um who knows what'll happen down the road whether it would you know probably wouldn't it get cut it probably would be prrated right um because that number
083is based on how much schools spend throughout the state. Okay. And that generally doesn't ever go down. Right. Right. Right. Um, so that that's SAT shouldn't decrease. If anything, the state would not fully fund it, which is essentially kind of decreasing it. It is, right? Yeah. It would be it would be a decrease and it's range from as low as a couple percent or six%. Yeah. I just think it's important for all of us to kind of understand that because um when you look at our look at the budget, it's like oh okay, you know this like um but there is a variable and so I don't know if there's a way that you can give us that information to kind of show like the low end of what we could what our projections would
084look like if this happened. Yeah. um versus like what we would what it would look like if this h just because I think and we we have those that was presented to our budget and finance committee at our last meeting. It was it was assuming that there was no increase in the SAT and and in that that final year 3 20334 fund balance was projected to be right at about 25 just below 25%. And so really that's the difference between between what was that that number the you know roughly I think it was 24.3% compared to what is shown in this presentation and the budget document. Okay. So really that's the impact of that SAT increase. Yeah I think that um Okay. So it goes to the 24.3. Yeah I believe that was the the
085percentage. Okay. Um and then um okay that's all I've got for right now. Okay. So just without all the noise and all the details that most of my neighbors and people I talk to don't care about. If I can simplify this and just make sure I'm understanding the basics which is that we get state funding. We have a range of numbers that it could be from zero to 7,145. We understand those variances when we're looking at projected budgets, but we're not counting on that money. We're not going to be screwed over if we don't get that money. We haven't allotted it to some sort of expense. Correct. Yes. And no, we counted on the 6760. What we're not counting on is what we weren't accounting on just a couple weeks ago was the increase. Right.
086Right. All right. But our confidence in the 6760 is really high because that's a continuation of something that was already kind of established. Y Okay. Thank you, Steven. Yeah. Thanks. I think I was going to underscore Miss Heer the clarification that I think you put forward which is what I heard you say is the operating expenses. We're not changing in reliance on getting that increased amount. We based what we're going to spend on the reduced amount. So, anything we get above that is just extra money that we have. And and I don't want the state legislator to hear me to be like, "Oh, wait. They don't need the money." But it's more um that's what it is. So, we're even when our projections are either high or they're higher than they were previously, right? So,
087there's we're not counting on money that we may or may not get, right? Is that true? Okay. Right. We didn't have any associated expenditures added when we got that news. Right. Got it. Thank you. Go on. Okay. So, the um projected expenditures are 93.6 million in our operating fund. That's an increase of 2.3 million or or 2.55%. Again, I listed some of the more significant increases and significant increases. Um most of the expenditure budget, 80% is salaries and benefits. And so the very first increase is the increase in salary and benefit packages which were about $2.4 million. The average package increase, and that's wage increase plus benefit increases, was uh 3.27%. Uh the next line you see 2.2 million for KHS roof and exterior lighting. That's something that the board approved back in December. Um,
088with that is we have some allocated funds of $1.2 million. That's that's really to use that provides some flexibility for the board, but also for the new superintendent coming in. So, that's money that is it's in there as a line item, but we haven't determined how it's going to be used yet. So that's where the flexibility comes in. Whether the board wants to use it for facilities or staffing or programs, whatever, it's you you have that flexibility. So it's it's in there. Um just hasn't been determined exactly how it's going to be used. Um the next is an increase in textbooks and math resources. Below that is an increase in teaching contingency of 3.0. Uh that that is something that originally I wasn't planning to add. Um but I know that there was some concerns
089about not having that and some history on the teaching contingency. We used to have that each and every year um as our enrollment was growing. So we added a teaching contingency into the budget um because we wouldn't truly know what our enrollment was going to be or class sizes would be until we got later into the summer. So, we added that as a contingency at this point in time uh just in case we had to add teachers. So, it was um originally wasn't going to be put in because our enrollment had decreased and is projected to decrease again. So, that's why it it wasn't originally planned. Uh but is since been added back in um as you heard Dr. Field say that we potentially um can reduce through attrition by more teachers. So that gives
090some additional flexibility for the board. Um and that um if you recall Dr. Alrich said about the glide path that we would be on as as enrollment goes down, we have to look at potentially reducing expenditures. We should just be fiscally responsible. Um we are projected to lose about 400 elementary students over the next five years. Um, so I know that what I said was plan on at least nine teachers. That was a pretty conservative. We should easily be able to reduce nine teachers through attrition um if we lose 400 elementary students. Um so that's and it's not planned for next year. It's planned for year two, three, and four going out. Um but if we do end up reducing staff by five this summer um then we're really halfway there already. So um the
091other thing that I I do want to point out is there's there's some savings each and every year from people that leave the district um for whatever reason whether they move out of out of the area. We had one teacher that decided to retire kind of last minute that wasn't part of their original EIP and uh we'll save about $125,000 just from their replacements, those seven teacher replacements. So, um that's some more flexibility that that we would have within the budget. Some significant decreases. uh this current fiscal year that we're in, we paid the final principal and interest amounts due on the prop bonds which were $2.6 million. So that that came out of the operating fund this year, no longer needed next year. So that's a decrease. We reduced U PLC coaching, literacy link,
092and math 314. We reduced some just because it wasn't needed anymore. Um that's 426,000. And then there's some one-time expenditures that we reduced as well. The uh renovations that we did on KCC, there was a one-time uh school furniture allocation that was approved in this year's budget. That's not in next year. And then we also bought some U maintenance vehicles. So looking at the overall budget, you see again 80% is salaries and benefits. Services are about 11% of the budget. That includes things like bus transportation, property insurance, school food service. Um supplies are 6% probably the biggest one is our electric and gas. Those are considered supplies for the district, but also textbooks, custodial supplies, maintenance, um copy center supplies. There's a number of different supplies that we pay for. Um, last thing is uh
093equipment and other 2.7 million or 3% that includes the KHS roof exterior lighting that I mentioned for 1 million. The 1.2 million um that's unallocated. Had to put it somewhere. So, it's it's in this category. Uh but again, that's something that the board and new superintendent um will be able to use um during the year if and when the need arises. Uh this graph shows the same uh total expenditures. It's just broken out a little differently. You see that we spend uh the budget is made up of um 55% of it is for teaching staff. 18% is for support staff and 7% is for admin. And then everything else, supplies, services, equipment, that's 20% of the budget. We always look at how much we spend per pupil. We compare ourselves to other districts just to
094see where we compare to, see if we're kind of staying on track. Um, this is from the 23 24 fiscal year. We won't know this current fiscal year for a few months once all school districts start reporting that. But this time a year ago, um, it we spent 14,600 per student. That's close to the county average. It has been for a number of years. County average is 14 point uh 14,400. So, pretty close to the county average. You see a couple districts below us, couple neighboring districts below us, and a couple that are above us. Um, but this doesn't change a whole lot. We we generally have been kind of right in the middle of the uh pack uh for the last several years. Okay, time to switch to the fund balance. Uh any questions
095on expenditures before I move on? Mr. Cathy, switch it up. name Miss I'll just channel Mr. Boyco for a second and say that for our expenditure per student we get amazing outcomes when you look at us how we compare and that's a point that uh Mr. Boyco used to make all the time and it's something I really appreciate something that comes up in conversations a lot so I'm just going to point it out Miss Andrews um so when a In the budget, you have line items, right? And so when a line item um when you go over the budget um in on a line item, um I know that we have budget amendments and that type of thing. Um what is the mechanism to inform the board of this? It's the monthly budget amendment report
096that is submitted to the board. Okay. Um, is there a way to um make a um a adjustment to how that's being reported to us um in a way that um so that it can be something that if if there is significant overage, we're not ha like not having to kind of like, you know, look at this document compared to this document compared to this document. Um, just because as a board member, I I think that it's important for us to be aware when um, you know, I know that we get them the monthly thing, but I I think that we there has to be other steps taken. Yeah, we can put it in the the memo that goes along with it. Usually it's pretty brief, but that probably would be the spot where we
097would if there's some significant changes to list some of those and reasons why. I think is that what you're thinking? Yeah, I mean, you know, because I guess, you know, if the, you know, the amendments don't ha, you know, I would have to go look at the line item to see what the budget is to see then like are we out of bud, you know, are we out of our budgeted line item? Um, and so, um, Nate, I think I I completely understand what you're getting at and I think that might be something really good to talk to um, Dr. Rumpus and the new CFO about. Absolutely. But I just I want to make sure that because obviously you're going to be talking to do Dr. cook and not I'm not going you know to
098be so um if you can just put that I can and and the the other thing that I wanted to mention the financial statements that we give monthly there's um over on the right side there's there's a column that says adopted budget and a column that says amended budget and if you as you look through those and if you see any differences that's one way of knowing what the increase was from the time that we set the budget a year Okay. So, okay. Yeah, that's in the budget amendment. Yeah, there's the column says adopted budget and then the sec the column next to it says amended budget. Okay, perfect. Okay, thank you, Mr. Ro. I think it might have been this time last year we were talking about just like us being self-insured and I
099mean every industry and company's expend experiencing increases in medical expenditures. So yeah, any I'm just curious any update if there's a I don't think anybody's experienced a difference in that trend, but I'm assuming we're continuing to experience that. Yeah, we it it's something that we continue to watch. You know, the medical claims have really gone up uh quite a bit. There's a variety of reasons for that. Um one is just inflation, but also is just some unfortunate incidents with some employees. Um, so it is something that we watch. We we've looked at what other school districts are experiencing too and and and ours has been consistent and in some cases lower than what some school districts are experiencing. Um the premium amount that um some of our neighboring districts we for the longest time we
100were well under what um the other school districts were using as a premium either paying or putting into their self-funded account. Um so that is something we should continue to look at um you know whether or not we decide to stop being self-funded versus traditional type of insurance. That certainly would be a bigger conversation and and some type of study to kind of figure out that. Um but we we were in a a very good pos position for a number of years where our claims were just really low and we didn't increase the premium for six or seven years. Um that all really I think with the onset of COVID really impacted everything obviously but um and it and then with inflation it just really hasn't stopped. So, we've been trying to get on top
101of it by increasing premiums each and every year and we have and um hopefully that we've kind of turned the tide on that and I I just mentioned we had two good months and so it's only two but hopefully that's the trend that we can expect going forward. Do we need to just make note of that as something that needs to probably be studied just to again doesn't sound like we've got any critical issues here but just to be ahead of it probably should. Okay. Yeah. At the very least compare ourselves to what some of our neighboring districts and I don't know when the last time that was done. I think HR does it pretty frequently when when we look at premiums. Um, but that would be kind of a quick and easy give us
102a quick and easy idea of of how we compare in terms of u premiums and expense when compared to our neighboring districts. I do remember that um Miss Ross had done some work um in the past on um looking at um like a a clinic clinic type type thing and there are a variety of districts that do that. Um, in addition to the medical costs, I think it might be helpful to take a similar process like kind of approach of thinking and projecting to other expenses that might rise outside of the our control. So, for example, I noted a nearly $240,000 increase in what was needed to upkeep some of our buildings. And so, I think we we obviously see different industries e and flow. So, if we can keep our finger on the pulse
103of what those industries are to be able to anticipate those rising costs. Yep. Thanks. Okay. So, looking at our operating fund balance, uh there's really a the purpose of the fund balance is, you know, there's a short-term purpose and a long-term purpose. This illustrates the the short-term purpose really and and that is we have to wait until December and January to receive most of our revenues. So we use the fund balance to get us through the first five months of the fiscal year while we wait for those revenues to come in. So that's why you see that dip in the fund balance in the first five years goes up or first five months goes up the next couple of months and then it starts to come down again. That that's something that we experience each
104and every year. November is always the low point in our fund balance. So long-term purpose, you see there, it provides mainly financial stability with um for us to be able to weather different types of unforeseen, you know, problems that may arise or cuts that may come along. Um so it prevents us from having to lay off staff, cut programs, things like that. And Mr. Rome, forgive me for interrupting, but m Miss Andrews, that would be exactly what what he's talking about would be exactly let's say we had a year where they had to do the probation factor at like a 0.96. Um, this would this is this is weathering the storm. That's that would be an example of of of a of really trying to anticipate the impact. Yeah. Okay. So, that would be an
105example. Just thinking about your conversation earlier. Yep. Any year that we get word that something's going to change, it would affect those uh this graph. Um some of the significant assumptions that I've listed uh we're assuming a 2.9% increase in property tax revenue next year assessments happen each or every other year in odd years. Um and and these assumptions are we always talk about these with our budget and finance committee. These are our major revenue assumptions that we have. Um but in those subsequent reassessment years we're only projecting a 1.8% increase. So, um, a lot of the projections are somewhat conservative. Um, and that's kind of an example of one is is that we're assuming a pretty low increase in those reassessment years. And again, it's tied to CPI. Um, so we expect property assessments
106to be higher and probably much higher, but um, but we only get the increase of the the CPI increase and and that number is 1.8% that's in the projections. Assumes C revenues are stable. Assumes the 7,145 uh per student in the SAT. Um again, it it doesn't assume it increases any further from that over the next 10 years. It likely will increase some. Um there could be some years where there's a proration as well. Um but it does assume that full amount and that it's fully funded. Um, investment earnings used to not be a significant source of revenue for us. There was a time when interest rates those COVID years where it was next to zero. Um, but it it now because we're earning 5% on our investments, it's $2 million a year. So, it's
107pretty significant. Um, it does assume 4% over the next two years, we got some money that's already invested for the next two years. Um, earning higher than 4%. So 4% over the next two years, 2% each subsequent year after. That's also something that our budget and finance committee recommended. Um salary and uh benefit packages, a net increase at 2.75%. That doesn't mean wages can't be increases can't be higher. That's increase in the package after u retirement and other reductions that we know will happen. Um and then you see the the last uh line there 20 or 20 33 34 the projection is 48.9 million or 43.1%. So really strong financially I do feel that these are somewhat conservative. It'll probably be extended probably be higher than that at that point. Um, but there's still a
108lot a number of things that can impact this. So, with with regards to that what you just said about um the 2 point the package at 2.7 um can you repeat that about the retirement savings? So, every year we there's turnover, we lose staff. So, So we have a savings from that that is really kind of the net increase in salaries and benefits that we're projecting. So So so you're using that that savings from retirement to pay the increase in staff or increase in Yeah. I'm just looking at the overall salary and benefit budget. So we may get we may give a three and a half% or 4% increase. We have savings from retirees. the net impact is a 2.75% increase. Okay. Um just because I know that Dr. Olrich and I we um have
109had conversations and and different things about about you know that that money and um sometimes we've talked about how you know sometimes that money could we use it for um like if there's a need for for student needs. Um and so um It's just something that I want to make sure we are are meeting our staff needs but also meeting our students needs. So, okay. I I care. Uh okay. So, um I'll try to go quickly on on debt service. Um these projections are based on um the preliminary property assessments that we just got in March, which I had mentioned was about a 20% increase. Um when determining debt service revenues and the debt service tax rate, it's not tied to CPI. So we're not capped at the 2.9% for debt service. Debt service is
110based on what you the debt that you have to pay. So assessments, property assessments, and the debt that you owe is is how you determine what the revenues can be. And we're permitted to carry an ending fund balance equal to the next year debt payment. And so next year, the project projection is, and this is based on these preliminary assessments, they will change. They'll they'll go down some in in July. They'll go down even further when we get the final numbers in September. But we're still going to see a significant increase in debt service revenues. Um, but based on the information we have at this time, revenues will go up 1.2 million. Um, and then our fund balance that impacts the fund balance, it goes from 3.5 to 4.8 million. And then next year, assuming
111that assessments don't drop and they they shouldn't drop in the following year, then the ending fund balance that in that second column of numbers rises to $6 million. So at that point in time, the fund balance is higher than the next year's debt payment. And so that's when we're going to be at a point where we have to reduce the tax levy. And you see at the third column at the top, you can see that right right here, right there, projected to go down to 22 cents. So, so the um the new administration, the board of education, two years, you'll have a decision to make. either allow it to drop, it'll be forced to drop if we don't pay off debt early. And we do have a history of paying off debt early. Um we've
112done it three or four times in the past five or six years. Um so if we pay off debt early, then the the tax levy can stay at 27 cents. That would be my recommendation, but that's not for me to decide. But um there's some advantages there's some advantages that keeping it at 27 cents, but to pay off debt early, you save the interest cost and and you would likely pay off the final year prop debt or a portion of it. We're paying 4.3% interest on that debt. So um so that will be a choice uh for the board to make. Like I said, we've done it in the past. There's a note there that they're not callable, but you can defease debt. All that means is you you put it money with an escrow
113agent, a bank. They hold the money and pay off the bonds when they're callable, but that allows you to get it off your books. Um, and then you maintain that that service levy and you don't have to pay the interest on those bonds um in the final year of prepar. Mr. Kathy, as always, thank you. Um, so my my question comes back to the u the revenue that we created with the tax rate in September and the use of that the decision for the use of that when we pivoted based on feedback to to add the three contingency features back in. I want to preface my questions and comments based on the fact that this is like a a process focus to me. Um I'm trying to understand so we we created about 2.5 million
114in additional revenue in September. Um you came to us in December and we chose as a board to use a million of that. another decision has been made to use 250,000 of it in the budget to to bake back in the contingency teachers. And that's where I'm struggling. I I am not aware that we've discussed that. I know we discussed, you know, we asked some questions at the the preliminary staffing uh discussion about that. There were ongoing discussions and I believe we felt that it's good to have that to aid the new superintendent just in kind of an e ease of ease of operations, right? But how we choose to fund it was not discussed by this board. And my concern with this is again, I don't think it's a a dollar amount. I mean,
115money is money, don't get me wrong. it's not going to the district, but I worry about a precedent being set that a decision on the use of that money can be made without this board discussing it. and then another 250,000's used and another 250 after that that and then we're looking at where did that go and we we've ventured away from the original intent of creating those funds so that we can make decisions to proactively get ahead of the facility master plan work or do other things that might be identified by the administration. So I want to open up that conversation to make sure because that conversation did not happen like it did in December when we approved that. So first I want to know why did we how did we get here? I think
116the decision was made just because right around that time also we got the enrollment report and you know it it not only did we decrease enrollment this year and really last year as well. Um we've experienced two years of decrease and the enrollment report shows that significant decreases are coming over the next five years. Um, and so, you know, the fact that we probably didn't need the contingency, but we we knew that there was a concern about not having that allocated. So, so I think the concern was didn't really feel like it was a need to increase the overall budget because there was enough of contingency funds really built into the budget. There's really a total of 1.5 million contingency. It's the the 255,000 for teaching contingencies, the additional 1.2 million that's unallocated, and then
117really on top of that, potentially another five FTE um staffing that we think we won't need. We won't know until later this summer, but that's an additional five staff funds for additional five staff that's built into the budget that won't be needed or may not be needed. And so I think that's really the I think the purpose was really just not to inflate the budget too much. But again, I think the contingency topic illustrates to me a process piece and I I just don't know. I I struggle to understand why we've been so averse to having this discussion about it and I think we need to have it. I think the original intent in in creating those funds, you guys did great work. We spent weeks and weeks and weeks trying to get caught up
118with you and I think we did to do good things and now we're diverting away to where you know that that conversation is not including the board and and I struggle with that. So, um, I want to have the conversation. I I want to make sure that I mean, do we all agree that we should have a voice in that? So, what does that look like? I I think that the feedback was received that we as a board wanted to to ease the new superintendent that if he's got difficult timing, you know, decisions to be made about adding teachers at the last minute that we can do it within the the structure of the current budget. But tapping into those funds I'm repeating myself at this point. So you you know where I stand and
119what I'm asking for. So Miss Motifik, I turn to you. Dr. Olrich, I turn to you. This is something I have been asking for that we need to discuss this now. Well, and I I think the one thing I want to make sure that I I I say is that at no point have I have I or Mr. Rome or any members of my staff been averse to the conversation. This is this is a recommendation. Uh and I believe the recommendation is based on sound fiscal background and uh uh and planning. However, uh what I will say is is if that if the board of education would like that to be indicated in a in a different part of the budget or differently in the budget, um certainly that is we will take direction from
120that based on based on the conversation. So I want to make sure um that uh what is not coming across is somehow an aversion to the conversation or otherwise um even being defiant. Um what uh what I believe is and what I have supported is um certainly the original recommendation um back in uh December when we first started these conversations um all the way and leading up to and supporting uh Mr. Ro Mr. Rome's um uh recommendation as uh as he has brought it forward this evening. Uh but again if after a conversation the board says nope uh Dr. We would like that charged to the budget above and outside of uh the funds that were generated by uh the increase in tax revenue by the the choices that the board made in September. Then
121certainly that's how we'll reflect it. I've asked on at least four occasions and the feedback that I've been given has then been that if this wants to be discussed, it needs to be discussed in July with the new superintendent. So I want to be clear that has been communicated to me multiple times. So that that's why I'm bringing this here because I don't understand why that was the guidance and why that was communicated to us. We're here working through this and putting our time and effort into figuring out this budget now and this is a component of it. So, so I'll lead here. Like, are we even in position with five board members here this evening to process through this? I I I don't want to speak for everybody. And Miss Mo, you tell me
122to stop, but I believe the board wants a a a voice here. And again, more important to me is establishing a a a process for how we go about utilizing those funds that were created in September. So, I'll what I'll put on the floor is we we have two board members that aren't here. Everybody's voice needs to be accounted for in this conversation. You know where I stand, but everybody deserves an opportunity to speak here. We need to come up with a way to do this so that I think from a timing perspective to respect the process we can get feedback to Dr. Olri and Mr. Rome about how this needs to be potentially changed as we come back to the work session in early June. I have also asked on repeated occasions and was
123told that this was um you know Dr. Rumpus's budget but this is your budget Dr. Alrich with Dr. up as implementing it. And so one of the things that I asked and was told that I wouldn't get unless I got complete board approval was um I would like to see the projections with the contingency teachers um not using the the I call it the tax roll back money. Um does that make sense? Not entirely. Okay. Um, it's okay. And I'm I'm trying to wrap myself my head around it. I've talked to Mr. Cathy a bunch. Um, here's And I didn't mean to jump in. Um, we wanted we we essentially directed them to put the contingency teachers back in the budget because we were concerned that they were removed. They're back in the budget. What
124what fund or where should they have been? Okay. So what I um you know the 2 is it 2.5 million from the roll back? It it's three million but three million but we we we ear 2.5 million. Yeah. So the 2.5 million right when we all decided to roll that back we also decided that that would be money that we discussed right so we voted on the um so I would like the contingency teachers not to be paid for with that 2.5. I would like them to be paid for within our budget. Um, again, one a processing thing. Two, that was what because we haven't agreed upon it as a board. Um, then then that's where I think it it should have been paid for unless it it is talked about it as a board.
125I I can to reframe that. And Mr. Dur, I think you know where I'm going. I I think we'd like to see the budget presented with the 1.5 still unencumbered. and not 1.25. I do. So, speaking to that point, I was trying to wait my turn. I'm doing my own little part to keep us in order here, you know. Um, you know, I I do agree. I I think the points being made are that when we voted on doing that roll back, we talked about a lot of different things that we could use that money for. And I I think that the assumption was I think the fair assumption and probably the discussion that we had was, you know, it's possibilities and we as a board will agree down the line whether it's facilities improvements
126coming out of the master plan or um any number of things. And so I think Mr. Cathy's very fair concern here is that if we just start like putting it towards little things that we don't discuss that pretty soon we we could you know um I I think that's fair. I what I'm hearing is that we had kind of a budget set up and that we asked for the contingency teachers and the thought was there's probably a lot of places where funding for those contingency teachers may come from but it's not official yet because it's going to be losing teachers through attrition. It's going to be these other possible things. We may not need the contingency teachers. And so I I get that thought process that it was kind of used as a placeholder that
127was unlikely to be used, but that doesn't change the fact that it wasn't, hey, the board set aside this chunk of money and the board wants to decide what to do with it and that that decision was made without us having a conversation about. And so I I think just going forward, if we're aware that that's not what we're hoping to do with that money, it be nice to have a more formalized process of whether and it could come from either side. It could be we as a board are saying, "Hey, we've all we're really into this thing. Can we use this money for that?" Or it could be you guys coming to us and saying, "Hey, you know, a tornado demolish something. We need to, you know, we need money for whatever it is."
128You know, I I think um the conversations should probably be had is is the fair point, I'd say. Um so that was me to that piece. And then I just wanted the thing I was gonna say originally was just as you are in your probably, you know, on your way out the door, happy to start a fresh life without looking at numbers and seeing them in your sleep. Um, I just want to say that as we go through these presentations, some things that I really appreciate about you and your work and the strategies that you apply. I I love that you take the conservative stance on things. I think that leaves us so much room and I think it puts us in a good position constantly that you use conservative numbers and make sure we're
129airing on that side of things. Um and then you know your advice to pay off the debt. I mean I I'm married to a financial adviser so I just you're like I'm right there with you and I I appreciate that. I think that that kind of strategy and that philosophy with managing our finances has led to us being in such a good position. And so I just wanted to share my appreciation with you on on that front. Thank you. Before um I call on Miss Nean and anyone else, we need to we need a motion to extend the meeting. We're at um 8:26. In four minutes, we would have to disperse. Um so I need a motion to extend the meeting. So move Kathy Second, Nean. All those in favor? I Chad here to vote
130now. We're about to get some really bad weather, so we probably want to wrap this up as quickly as we can. Okay. Miss Neman, no further comments, but that helps. Um, I I will just say that um I too appreciate your conservative approach. I don't use conservative as a positive very often. Um, and uh I also always if you see me chuckling whenever you're talking about a fund amount, I always think you're saying fun, not fund. Um, and I would ask is um as a board if we could have conversations and plan to come back at the work session to address some of these concerns when everyone can be here. Does that sound like a plan? No, I mean I'm comfortable with that, but there's no direction until we come back to the work session
131in June. In the meantime, I I think what I heard from the board is to run the projections with the run the projections with the teachers outside of that. Is that what I heard as well, Miss Mo? Okay, you'll have that uh we can have that for you maybe even as soon as uh certainly by the end of the week, maybe even as early as And to clarify, I'm adding three contingencies, keeping the 1.5 million intact and not reducing the FTE that Dr. Field just talked about. not taking those five teachers out. You are you are correct in your deduction. Thank you.