001Public so public official. Welcome everyone to the What is this April finance meeting um and that's the budget finance and growth committee for the Cincinnati school board. I'm Eve Bolton to my left. Gans Matt and to my right eventually will be Jim our other member of the committee, Mr. Crosset, and going down that road we have three distinguished guests. Thank you. Michael Gusman treasurer. Liz Martin assistant treasurer Lauren Haber Cos chief operating executive And to my right And uh we are going to need the chair is going to entertain a motion to go into a rather short we hope executive session for the purpose of public official employment public official and I'll take the motion from my distinguished colleagues. So moved. I'll second it and I'm allowed to as chair. We'll vote. Yes. Yes. We're
002into executive session for the purpose of employment of a public official. Oh every bit of it probably we're going to aim for 10:15. >> Mhm. >> Then we've got some moves to six and seven the budget update by the treasurer and superintendent and evaluate pathways to create our budget and we'll also talk to you about the levy timing and science of determination and utilities. Okay. Rob is not as lined up. Everybody gets mics ready. Sorry to have been delayed gentlemen but I can assure you we're working anyway. Always. Always. Best I knew it worked in the last 10 years. Sorry. My chair doesn't have arms. Look at that. Yes. Tell me when we're on my Rob. All right. We want to welcome back. We have convened it back out of our executive session that was
003dealing with employment public officials and we are back in the in the interest of time and difficult calendar today with of work for everyone. We are forgoing the first five items on the for new business. And we're going to skip down to items six and seven. The visitors that we have here said that they were here particularly for those first five although those were terribly important. Is there anything in the old business Mr. Treasurer that you wanted to cover before we go to six and seven? I see if you skip everything. I did put cabinet pathways. Um since that's old and maybe this year. Yes. That's what I want to touch on. So I would appreciate feedback from the feedback that you guys are writing so we don't you know slow down the overall this
004meeting but I yeah I would appreciate these meetings to be done. I I then we will get back to you but it just right now I'll say it in public I think it's they look good. I would only maybe add what we kind of had some discussion about regarding the organization as it pertains to our school treasurers and what have you as I think the internal audit chief will be getting back to us. The assistant treasurer will be getting back to us but I don't know if you want to have any that incorporated at all or not but that's to me that would be the only thing I would think about adding. Yes yes so one thing I will say is you know I did I did change a couple of the goals because they
005had happened. You know one of which was onboarding an assistant treasurer. I'm going to I'm going to mark >> and we're not even regretting it. >> Yes now I don't know if she's regretting it or not but >> is. But I I'm going to mark that goal as complete and move on so. >> So if if you may can we go if we go to the budget update? >> right to it. All right. Rob if you go to the next slide. Thank you sir. So I and this this is actually this is actually feedback I got from some of my peers is to as we talk through the budget remind folks how we got here and I am going to take the opportunity to do this every time that that I have an opportunity. Um
006and and just remind folks that the district had a had a fairly stable you know funding funding mechanism the way the way we had our our tax levies and the state funding that worked worked for years. Um Unfortunately the last property tax refund legislation moved the district off the 20 mil floor. Um meaning meaning we get virtually no increases going forward in property tax revenue. Um at the same time you the state has failed to update the base cost in the in the fair school funding plan which which leads to an ever decreasing amount of state funding and state share. We are actually going to move to um to become a guaranteed district starting soon and and what a guaranteed district means is that that the way the formula is now so skewed that you
007go back to the amount of funding you would have gotten in 2020. So that means in fiscal year 2027 the state will be giving us the same amount of money that we had in 2020. You know not to mention all of the changes we've had to population to extra mandates from the state to all the other things that have happened. And as I'll continue to say our costs of course continue to rise. Um the um the government just kind of re-upped the inflation rate. They're expecting inflation this year to end at two 2.7% is the economics it's probably as higher than that individually right now. And then on on certain things it's even higher than that. So so the cost of doing business continues to rise where district revenues continue to be flat and that
008is how we got we got in this situation. It is not a reflection on on anyone in this room, but we are responding to external pressures and I want to I want to I want to start our conversation today saying that because and and and setting that setting that tone before we get into the pathways. Okay. Keep going. All right. >> [clears throat] >> All right. So some some of these slides are are kind of carry over from prior from the last business meeting. So I'll go quickly. Uh one of the one of the feedbacks was to was to put a little more emphasis if you go to the next slide, Rob. On on the pathways. Um you know, I some of them showed some bias on which pathways were preferred. So tried to restate
009each pathway under benefits, risk, and effects on academic outcomes. Hopefully that gives a more balanced approach to each to each of those pathways. I will also say if you'll go to the next slide. Now we're starting to get pathways on pathways. So so in the work that in the work that the superintendent has has had us working on um in our groups are starting to see now a pathway start to branch as as people people think through these ideas and start to say, "Hey, what about what about this? What about that?" And I think that's good work. It's it's good work. It's showing creativity. It's showing people people starting to think through different ways um to tack to tackle the same problems or to provide the same outcome provide the same benefits for less. May
010I just make one comment that decentralizing it would just from a public perception of what that means it makes it much clearer if you say back to the schools. Or and I know it's not that's not the whole piece. But that that makes more sense than decentralizing at least to the public. It's a big word. >> School based whatever. I just that's because that's that was the concept of that decentralized approach was getting [clears throat] the strength and the resources in the schools. Uh so I mean I don't know just as a thought. >> Yeah. It could be. I just decentralize is is a bureaucratic >> [laughter] >> term instead of a heartwarming schools. >> [laughter] >> Keep going. Yes. Um Yeah, and then and then we talked about and yeah all all these pathways
011could probably use some marketing. Mhm. Some marketing some marketing some marketing work, but you know you know when you when you're when you're in the weeds trying to come up with a quick >> Sure. a quick definition is sure. We talked about you know, the pre-COVID level and then kind of working back from that. There there are a couple of variations to that if you go to slide 40 if even talked about Superintendent Murphy I think mentioned it at some point earlier today talking about the tearing model and and and and you using tiers of support to try to assign resources. I think that's that been a in very good academic practice. That can also be be applied to other things that are non-academic. So that was that was really good. I think you're also
012finding again Rob on slide 45. Yeah, we're starting to blend some ideas. You know, as as as we talk through these things you're starting to blend some ideas which I think most folks realize was kind of going to be inevitable. Um that that that there was going to be a blending that we were going to pick and choose. This is really great to decentralize. This might be really great from pre-COVID. This might be really great from from partnerships. Well, in the public discussion at the most recent board meeting was a blending of all three. And that wasn't a cop-out. That was a recognition of reality. Whatever works uh as a package. Not just as one you know, one uh line. So I probably a good point to to kind of pause and take board member
013questions, comments on the pathways. Superintendent, do you want to add anything before? I'm sorry. Okay. Keep going. Okay. So so that those are the pathways. We continue to work on them. I'm sure there'll be some robust discussion uh on Monday. So other side of this are what we're called the high priority items. I think another way to to look at those are items that exist in all pathways. I think you're Rob as Rob showed um slide 47 48 I guess where we're at um you know, it's kind of a breakdown of these high priority items. Could we could we this where you are now uh that Yes. in front of us. Mhm. Uh the is it um my recollection that the most specifically itemized listing of those three was the one with the 70 some
014million. Yes. That the next one had categories. Mhm. But they were categories. And then we have we yet seen the school based piece? Yes. So um attached to to the board docs we we provided a school by school list uh as well. Rob, if you'll can you click through the bottom link, Rob? I'm sorry. Your your other bottom, sir. And and then we pray this works. So >> [laughter] >> Right. So yes, there there there is a there's a document there that has by school by type. So you can see for any school you know, there's a there's source of formula is is what what we would how we would what we would kind of say and then the number of positions for each group and that goes >> is available on board docs. >>
015It is available on board docs. >> guests in the room right now as well as the public. Yes. Jim. So this [clears throat] is the underlying data with this is based on projected enrollment. Yes. And I I do I do want to say I do want to caveat that. I should have put it on the slide. Um all these things are based on the current enrollment projections that that we have and you take that and you apply that to the staffing formulas that exist. I do think we have an opportunity um in the near future to work with our union uh and re-re-evaluate the staffing projections. You know, we you know, they're done I don't know. Jeremy probably Mr. Galli he's here. So but probably like Decemberish they were done last round staffing projections and
016so and so you know, one of the things that one of the things that us and urge like to do is is update our projections as we get more information. I think we're probably Appreciate that. We're probably probably probably at that point. Yeah, we just got the state we just got the county tax settlement in the email yesterday. So now I haven't looked at it, but very excited to go back in and do my nerd work uh on that. But so so that would be an opportunity. These numbers could change depending on on what the enrollment looks like. Is it is it possible to have for each school a a range of enrollment like most likely you know, high end low end. Is that or is that just too much What reason I'm asking is
017is it possible in this process to have sort of a range of what this dollar amount is 400,000 400 million or is it range between 390 and 410? There's some there's some moving parts big moving parts with enrollment, right? >> [clears throat] >> Uh let Mr. Galli here. I'm asking that because you're you're Yeah, absolutely. So I mean from the projection of an enrollment specifically it is kind of built into a range already to a certain extent. I mean yes, it's possible. Yes, we can present it that way. We were ultimately you know, kind of going to refine it down to a single number because then in the process of matching the staffing to that when we're allocating like the number of students for a a teacher that's going to fall into a range that
018meets those requirements already. It's not going to necessarily match out one to one. >> So you're already doing that using the most likely number. >> Correct. >> Knowing that that there there is some Thank you. Uh questions for board members? Okay. Keep going. Okay. So the next slide is just a um just some name just some titles of of staff that fall into each of those buckets. Just so people people who don't want to dig through the the entire document can >> [gasps] >> can skim that. But you know, CBA compliance is classroom teachers, PAM teachers, clerical support, building engineers. The the one thing I will say and and like while while these teachers are under CBA compliance there there is a legal number of teachers we must have. You know, we we kind of
019we kind of moved this discussion to high priorities, but there is a state mandate there is a state mandate that you cannot go below. So so in the purest sense of in the purest sense of things there would be a number and then CBA compliance comes on top of that. But I would like to add though from remembering some board discussions from last year and and even the most recent one, they telling us what [clears throat] is going to be in every school, let's say, is extremely useful and helpful and without that, I'm sure we wouldn't be willing to take any action. Yes. >> But telling us what is there is not necessarily telling the board what's going. And then by asking us to vote on what you're proposing without us knowing what that doesn't
020include will cause multiple questions by board members as well as some um shall I say uh slowing of the process. Mhm. Is there going to be a list of eventually the things that aren't getting funded? I know we've never tried to stay away from the the issue of cuts. Right. But if the board is going to ask if it's going to be asked to vote for things to do if they don't understand what that means, what we're not doing, that's going to cause uh concern for the board and maybe delay any action that the board would take. >> Now that that that is a great question. If you'll indulge me for a couple of slides. Um Rob, if you'll So so just and and I I think there was a lot of unclarity on my
021part about the pathways and so I'm trying to try to clear that up for for this to So this this was the original slide that we presented back way back in 40. If you go one more, Rob. Uh this this kind of breaks it into the smaller buckets. So you see that. Um and then the third one is is kind of really how it works is it all of these things are part of the pathway. So whichever whichever arrow to the top you take all of these things live in each of those if if that if that makes sense. Um and then the next slide I I think this goes directly to your question is is how is how we get here. If we look at it if we look at it at the timeline,
022so we flip we flip the pathway document into a timeline. You know, you can see, you know, legal legal legal requirements we dealt with in March. High priority items we're dealing with in April. The little thick line there at the bottom is kind of the you are here. Can you say that is that still only the 70 million? No. That that is all of that's all of it. Yes. Um the the the reason the reason there's not a this is what's out at this point document and and and so and certainly we can create that is is because this is the kind of midpoint, I would say, of the budget process. And this this is a midpoint, so anything that's not to the left of the line or you know, anything that's to the left
023of line doesn't mean it's a cut at this point. It means it's still to be considered if that makes sense. But is it the plan of administration to be asking for a vote on April 20th by the board? I April 20th is pathway. 20th is the path April 20th is definitely the pathway discussion. Um I there is a there is an item on the agenda for a vote. Yes. We'll see we'll see how where it we'll see we'll see where that goes. >> I'm just saying that you're going to be asking the the board to vote on something. I mean regardless of where we are in the Vote is for the high priority. It could be um multiple votes and perhaps. It could not be a vote. So but we'll we'll But that is everything
024meaning the the 70 and the 240 that's what Yeah. Yes. Yeah, let's see. That's that's asking a lot of the board. >> That is asking a lot. Um yeah and one one one one of the ways that to that I frame this is and and I think I think this would be good board conversation is looking at looking at the things that are in that in that 400 specifically the 70 but also in the other spots, you know. When when the district approves the final appropriation in June are there things that are in the high priority proposal today that you don't see being in the final budget? And if there are, I think that is that is feedback we as the administration need need need need to receive and be and be able to take
025back and and rework what we're doing. Number nine, yep. Comment. It's kind of conceptualizing things here in um So as I'm looking at the high priority items and I recognize that this could be subjective in some sense of like my my thinking about it. But so from you all's standpoint, the high priorities are specifically the CBA uh compliance as well as state and federal compliance. Mhm. Um because I'm just thinking about as we're navigating the budget conversations and and top of mind my thoughts are always around um just the academic success of our students and uh the operational efficiency to help with the academic success. And so while they may not necessarily align with these um I guess examples of high priority, I'm curious to know like what is the thinking what is the process
026that you all are working through to um help us achieve those academic goals that we have even though it may not be the CBA compliance or state and federal compliance because it could still be a high priority. I guess. Yeah. Um the hard part [clears throat] is Yes, ma'am. So So yeah, I'm I'm trying to help me work through that. That's the hard part of Yes, ma'am. That's exactly the hard part of doing this. The things that some of the things that we feel are important may not necessarily be in the CBA or may not be state mandated. And so we didn't put it in this category. Does not mean that there won't be some form or function of it. We're not done. We know that we have We know that there's an expectation around
027uh improving student outcomes as it relates to academics. Just one example. And so we know that we have to have an academic plan to share with you that you would support. It's just that some of those pieces are not a part of what we know we have to deal with compliance-wise. Um happy to get more specific. I'm the timing of all of this um sometimes is a little challenging. If I may, I think I think the the the phrase high priority is was a bad term. >> [clears throat and laughter] >> And the president said that in the last board meeting. He said that term terminology was maybe misguided. I mean this Yeah, I mean So again, vocabulary makes a big difference when people are communicating. Um I'm I'm it I'm just laying that out.
028I mean really, that [snorts] high priority is all compliance. Yeah, that's what it is. Yeah. Um Maybe maybe not, I don't know. Or that's that's being presented. Yeah. Maybe maybe not, I don't know. Go ahead, Treasurer. No, I I I would say um through through our process, this this this is the administration's, you know, reading of collective bargaining agreements, reading of state and federal mandates. Do I think we're Do I think we're perfect? No. I mean I it's it's a considered thing, but yes, every everyone who sees high priority will interpret that again that was bad terminology. Um probably compliance is a little is a little better. You can vote on compliance which we already voted something about compliance. >> on legal requirements. >> 140 million or something. Maybe instead of high priority, we can
029make this compliance and then that peach line instead of school-based CBA compliance, it's just CBA. So we can make that edit. What Whatever, I'm just saying and again, you're asking the board to vote on something, but the board will want to know if I vote on that it means that I'm [clears throat] not going to have this. >> Mhm. But are you able yet to tell us what we're not going to have? I mean it's a and it's not half full, half empty. It's Because it leaving with a vote, a public vote. Because I think this ultimately forces or drives us to say, okay, well, we want we we're going to have to make sure that we're compliant, but it doesn't give us any other options or room, right, to make a determination um different
030from this because it is ultimately going to suggest if we vote if we don't vote in favor of this, then we're not going to be in compliance. And so I'm sure that all of us is going to strive to make sure that we're doing that, but it I think we could be missing some critical pieces here. If that makes sense. Mhm. Well, we're going to we're if we vote on this, there are things that are getting cut. Mhm. There are things that are going to be suggested. The board has to know understand what those kinds of things might might be. Um as well as knowing what we are voting for. As it was back to the word we Okay, after we do all that, then um we're down to Okay, now we have $85 million
031left. What would you like to put in? Or supposedly we do. Um, and so we go back and pick up what we cut. Or we Is this our new initiatives? Is this our strategic plan? And see that's it's a combination. Yeah. That truly is a combination. And and that was that was the pathway concept was once once these items, we'll call them compliance items, are are done, you have you have $85 million to to hit the budget target. And and so the idea was to create the that the administration would create proposals for the board to review using that $85 million that would be very specific. This is in this is out of this one. This is in this is out of that one. To to get all of that feedback to then come to
032I think as as discussion was a a blended kind of singular pathway. Well, it's almost always been a strategy though to get it to where the board's only voting on a such a small portion of the budget. The previous treasurer used to call it initiatives. What new things do you want to do? And we've already made millions and millions of dollars of decisions and all taken the hit for whatever those decisions were. My my concern is that the board has to know what it's not doing when it is asked to do something. Because that we don't want to get that big boat and then here's everything that didn't get done, folks. And here's the $85 million left to do it. And you're going to end I mean, I I think that there has to be
033some effort there to to follow up. Uh, Jim, sorry. >> Would it be helpful? Uh, if you go to slide uh, slide just before this one. Yeah, okay. On the left there's a column that has the 142 and the 553 and the 627. Would it be possible to look at this current year how we're spending the money in those areas? How how much are we spending for legal requirements this year? How much are we spending for not necessarily compliance, but really high priority items in in and just to get that might frame you know, where what how much it is that we that we don't have money to spend on. I I don't know if if that's a helpful idea. Is that I'm trying to get it away We we do have what we do
034have um, Jeremy has a um spreadsheet that does show this is how much we spend in this category for 25-26 and this is what 26-27 could look like. And so that's would that be even that be helpful? And it's all I'm I'm trying to be Uh, even even that be helpful too? >> [laughter] >> I'm just trying to make sure we know that that we know that we want to expedite the budget process as quickly as we can. There are other decisions that are depending upon it. I'm just saying that if you ask people to vote on something they don't have enough information about, they're not going to vote on it. My point is that the trying to do the big chunk. Let's let's go to your to the slide, the one that's broken down,
035the 142 which we already did. Mhm. And then you have school-based CBA compliance. That you've given us the forms for that now and that's that's very helpful. That's a chunk that you can vote for. I think the board could probably live with that based upon what you've shared. But that to see that they would also want to know what you're not putting in the schools. I mean, I'm Is this right? Okay. So, then the school-based state and federal compliance. Well, um there you go. If you put those two together, now we're talking about schools, but then we're now we've reached a point where we're kind of dissing the centrally managed budgets. We're saving those for the last. I think there's a way to chunk some of these votes if we have the enough information. And
036because we want to stay on track. >> Yes, and We want to vote on some portion of that budget on Monday night. And you have to it has to be you all being and you have been very This is as specific as we've ever seen anything. This is all very good. But I'm just you have to have the board have a comfort level about this. And I don't know how you want to approach that, but the uh, school-based CBA compliance since you've listed that, then okay, that means we're not going to have this. Or don't count on this being assessed to the schools. Okay, Jeremy, do you think um that spreadsheet would be helpful in this feedback with this feedback? I'm comfortable with Um, definitely taking in you know, in preparation for Monday and thinking
037through some of the processes. I'm trying to clarify at least for me and I hopefully not speaking too out of turn. Um, when we're when we're talking about like seeing what the board what we're not including when we use those kind of terms, right? What what we would not be having. So, I'm trying to process through in terms of like this list is providing those things we would. We have the list of everything that's not included in these numbers, correct? Like if we were to take our entire ask to meet the entire demands of the district today, including those initiatives we believe we could fulfill for the board and everything else is X. It's it's the total amount that we have that we think we need to do all of that. We know that amount
038exceeds what our target is. Right? To meet everything. So, by chunking it out, when we're when we're saying this is the $400 million, the 84 that's left, there is a known list of items that comprises the more ask that's left. We know we only have 84 to put in to those asks. So, we're saying what's not there. Are you essentially saying what's not in this list that then would be in the total list for everything if we were to give you that entire list. Does that make sense? It makes sense to me. I would like to know I don't know if that's what you're asking for, but I would like to know what the list can consist of to be able to compare it against what is not on this actual spreadsheet that's been provided.
039So, for our work, I believe that list we do have that internally what we're working with. That list represents what we're working with to say Still, yeah. Right, that we're still work That's the working list of here's all this stuff that's left. The 84 million is here. So, for those pathways, how do we divide up what's left into the various pathways to get back to what we actually have as our target? And and we're truly not Jeremy. comfortable to say to you this is what we're not doing because we want your feedback to know what direction we should move in. So, that's that's the hard part. The thing [clears throat] I Which which is one of the reasons why we vote on budgets in June instead of trying to vote on budgets in April. It's
040true. So, cuz we're being asked to vote on something that's still a work in progress. And go ahead. Sorry. >> I'm still not sure what direction you want from us. There there could be things that we would share with you that you're going to say for um, just for example, um, if we wanted to change transportation, that's not something we've presented to you. But if that's an example, in the past for me a few times you've said no in certain areas. And I do think that if there was something at this point we changed about transportation, it would not be helpful to our school district. So, so there is room to make budget cuts with transportation legally, but I don't think based on what I've received as feedback from our school board in the past
041wouldn't fly. >> I don't know. I From where I'm sitting, I'm not sure I can give you direction. Uh, I I almost feel like there it'd be I I understand about the the $400 million and you're saying, you know, this is this is stuff that's either compliance or high priority and that we really should get it down to this 84 million and you've got a list of things that this 84 million can get used for. But it would I think I don't know. I would >> [clears throat] >> I wouldn't mind it if you guys had a little bit more of a recommendation of some options for us to look at rather than just saying, you know, assuming what we did in the past because based on where we are, I don't want to assume
042anything about what we did in the past. And I wouldn't want you to to be stuck there either. And we got to look at this with the fresh eyes and holistically. And so, I I'm I don't know. Am I saying anything helpful? That's helpful, but I would say to me this is the recommendation. Well, because they have prioritized these things. They have properly so. The legal requirement, boy, that was a week in a blink. Yeah, okay. We'll go to jail if we don't do that. That's a pretty easy vote. Uh, but then when these next two levels, the school-based compliance and the school-based federal to me that is that's the treasure and the superintendent coming in and saying we are recommending that you vote for this because we have to have this. That's our recommendation.
043I think they're recommending the 235 and the 93 million that we're and I think we as board members would be hard-pressed to say well, no. We know better than you. I mean I that I don't think that is helpful. That's a recommendation there. But I'm but I'm concerned that people are not going to be have the comfort level to vote the positive unless they understand the the possibility of what is not going to be. So the conversation we had at SLT the last two weeks is part to whole or whole to part. And I think some board members are asking we've been giving part to whole and you want more whole to part. We can give you where we are right now. But we're not finished. We're not finished. And I just need you to
044understand that and you know, not get upset and um think that we're saying it's a value statement on some of these pieces cuz it's not it's like it's two things. It's like what do we want to dream but at the same time here are our limitations um for how far we can go. I would just need your understanding in that area. So Jim So for the for the April 20th board meeting I think it I think our I would think our board would be pretty pretty comfortable voting for the CBA compliance in this federal state and federal compliance. Central budget might be easy for us to vote on that to know what we're spending on central managed budget this year. Like is it the same? Is it less? That might be an interesting number that
045would be helpful for the board meeting on the 20th. And then what I think what you're saying is for the pathway discussion for the the last 84 million the last 84 million we're really not ready to talk about that. >> The pathway will probably be a hybrid of the things that we've discussed. >> That's that's down the road. That's another meeting. That's not Monday. I think to your point I think or I'll say for me I would I think I would be okay obviously with the CBA compliance state and federal. I would still have my reservations about centrally managed budget and in the pathways. So that's what I would need more context around. Um because again I don't want us to be forced into making a decision with us not having enough um information to
046drive that decision. But if we if if we if we give you that I just need you to understand we're not saying that there won't be other things that we did last year not included at the end of the day. Yeah, like please understand the centrally managed budget item portion of this is not does not represent what we're doing currently at central office. Correct. It is it it is a significant reduction from what from what we have today. And and we because we we thought as we thought through it we wanted to leave as much leeway as possible for the things that aren't in. I mean my my only concern I would say with with saying what's not included in and not and then well, you use higher priority for the sake of it's out
047here. But in these compliance items is if if we put out a list that says these things are not included that is not that that that creates the panic of all these things are going to be cut and that it is not a recommendation that the superintendent or I are making or anyone in administration. It is that these things are still in the consideration. But Mike when you and Shana present what you are proposing there is a list of what you're not proposing. And proactively that may is that might be panic but it's better than people like trying to figure out what it is. Which is what will happen. True. And you're asking the the board >> [clears throat] >> to vote >> [cough] >> I guess on the 235 and the night again I'm
048not sure and I'm finance chair. I have no idea what we're being expected to vote on on Monday. And I I find that a problem. But the 93 and the 235 um you will have board members asking you yeah, that makes sense. You're recommending. These are your recommendations. There'll be four votes based upon you recommending it. Oh, okay. >> know. I don't know. So that's not what we're looking for. But my but but my point is that you will have to tell us what is not included. You'll have to tell at least a few board members. We can bring the board where we are right now. This is what we think we need and can work. This is what we're grappling with. Halfway through the a little bit more than halfway through the process because
049we are voting on stuff months earlier than we usually would vote on the final product. Because we want to and we need to. You have to present how you're going to make your recommendation cuz these are recommendations. These are proposals from the from the administration. And you want to make a recommendation so that it gets approved. Just saying for all seven board members they will when they vote positively they will want to know and maybe it's just where we are now we're not doing this. But if we could be at our next vote. But how will they how will they publicly or >> [snorts] >> um well, yeah, publicly share their concerns if they don't know what it is that we're not doing. So. Jim Okay. But this is what we're committing to. And but
050the board needs to know what those that we're not doing. We're not committed to. I'm happy to say that. I'm just saying you just can't I've just the the proposed deficits. And we don't and the board doesn't know what that does not include. Uh yeah, it well and and very frankly that's when you're going to have 300 people in each room. Yes. And we're trying to avoid line item and we're trying to avoid where there is panic and 700 people show up because of the list of what we're not doing. I understand that but it is a public document and people have a right to know what it is that we're So. Yeah, yeah, maybe that's it. But that will be a good crowd pleaser. Lord. Okay, go on. What else do we have cuz
051we have our time frame problem. Um okay. So So appreciate the >> thank you for doing this today. >> appreciate the feedback. Yeah. I mean even when you guys said the legal requirements okay, I mean you would be amazed. That was challenging. I bet. You know, I I do I do think like this is this is the really nice thing about having the finance committee is that we get we get some feedback today. >> This is sort of dress rehearsal that rehearsal is always ugly. Yeah, but we we get we get good feedback from three board members today that allows us to then refine what we're going to say on Monday. >> And that's our purpose. >> And that that is always appreciated. And it is our purpose and we appreciate the work that is
052that comes to us in finance and the whole team approach. We really do. Yes. So one I'm not going to go over this but it's in there. We can talk about it Monday as well. Um there's a question and answer review. Mhm. So any board members that submitted questions um were were answered to the best of the administration's ability. Thanks superintendent and her team as we're not most of these answers I few of the things I could answer on my own. Most of them though required collaboration. You know, if it's a if it's a purely financial number easy to do but a lot of collaboration quick turnarounds. So thank you. I think I you know, I think we provided a lot of a lot of information obviously still plenty of questions. So let's So let's
053let's tackle those head on. Um Miss Bolton you asked for I think Mr. Crossett asked for this as well. Looking forward and and this is this is an important thing as we wrap up this budget is that what whatever we do this year does not fix the structural school funding issues. Yes. And and and it's important to say that. So So one of the one of the ideas that that Mr. Crossett gave us and and we worked through it was was looking at our revenues versus inflation. So So this graph basically pins both of those numbers at 2022 and says if our revenues from 2022 on would grow at the rate of inflation, where would they be? Uh the blue line is our forecast. Oh, wow. And and if you look in the grid at
054the top there, you can see how that gap works. And and the gap continues to increase every year as we are not as our revenues are not keeping up with the pace of inflation. Does this take into account that we're guaranteed this year? Yes. Yes, if we were not a guaranteed district that would be significantly worse. So So just one more slide, Rob. Just looking at FY28, I know this is hard looking at FY28, we are anticipating increase of revenue by 2.7 million. Our employee step increases will be approximately 6 million. So So no matter what we do now, FY28 starts with a 3.3 million dollar budget gap. And that and that is if not one contract service or supply increases in price. And I think we can all agree that's not realistic based on
055the inflationary environment we live in. So it's probably a great segue to our second topic. I'm not sure. [laughter] But in the question, you say a 3.3 budget gap but on the previous slide, FY28, the revenue gap is 29 million. The The that slide is again, that slide is just based on inflation area. If we if our if if FY20 if we had start if we had if our revenue had kept pace of inflation this is where we'd be sitting at. >> significantly Yes. Yes. So Yeah, so in so in so like for next year you know, next year we're looking at 630 million dollars in revenue. Yeah. Had we stayed with inflation, we'd be at 660. That's 30 million dollars would be huge for for anything that the district needs to do. So So
056this 3.3 million gap is isn't it assumes that we would have money to keep up with inflation. The 3.3 million dollar gap is what we're going to start next year with. What? After after this year after this year is fully balanced, put in the books, approved by the board, we move forward, we start looking at next year. Again, the revenue is projected to increase by 2.7 million. Step increases are going to be six. >> We're we're We're automatically in a gap and then that doesn't include just strategic plan stuff and doesn't include one penny of inflationary pressure. So really you could add the 29 million on the previous slide plus the 3.3. I I would say my my point is my point is no matter how however rough this year's budget conversation is going to
057be we we are going to repeat this every year until something changes with our funding funding funding picture. Okay. Thank you. I I think that's important to say. Other comments? Okay. Which is a which is my segue to Yep. to item number seven, levy timing and determination. Yep. I I I I don't have a lot of new information here. I included the slides from previous times just for reference so people would have them as references. Um kind of know where we're at. We know what's available. I did add slide 62 and it's in your packets. There There is some new some new information from folks around us. So as I think that was interesting. Um and I forgot to link one of the documents in there. If you go back, Rob. Sorry, slide 61. Sorry,
058friend. Um you know, you can see there's quite quite a few school districts are on the ballot in in May. For both income tax is traditional and some bond levies. >> [snorts] >> I think I I think that's important to know. Um again, I forgot to link the document from from Dr. Fleeter but he does an analysis of what schools are what schools are doing. There's a lot of folks in the ballot. Um I would say this is going to be something we will get used to. I mean the the intent of property tax reform was to do this. Was to put districts on the ballot much more frequently. Yes. Um you know, I've just to remind people what's been 10 years since we had any new money asked at CPS. Um before that it
059was 8 years. So I went back and looked at that. Now, the current property tax um laws are going to are going to force districts to be on the ballot much more frequently. You mentioned in in in one of the things that you're writing, that white paper to try to help explain where we are. I've I've seen that a draft of that and but there's a sentence that just basically says our whole strategy for the last many years has been rendered obsolete. Yes. by the state legislature. >> Yes, let me let me expand on that a little bit. >> think that's the lead part to explain to the board and and everybody that just our whole plan that has kept us solvent, good stewards of our dollars is now obsolete. It does not work because
060the state legislature changed property tax. We don't have to go to the public for some referendum or initiative. The state legislature's already done this to us. Mhm. Yes, let me let me elaborate a little bit. So So traditionally our our funding and if if you get I don't know, I think there's a there's a levy slide in here to use as a background, Rob. I think it's 57 or 58. Um so So tradi- Keep one more, sir. So So traditionally the district has relied on a series of current expense levies and those those are your fixed rate levies. They they decrease in value every year because of House Bill 920. And a series of emergency levies and and that was a specific strategy. These emergency levies got the district a fixed amount of a fixed
061amount of money every year. Um they did not count against the 20 mil floor and so strategy was the district would hit the 20 mil floor and would get um the reappraisal increases from being at the 20 mil floor while also getting the emergency levy money. And those are things like some of those are just operating but it's also, you know, the preschool expansion levy. Those things are very specific. They worked for the they worked for our district because we could go to the taxpayers and say you know, for example, in the preschool levy, you know, 15 million dollars of this 48 is going to preschool. And and and and people could know those numbers, vote on those numbers, you know, and run with those numbers. Right? With the recent property tax legislation, all of
062those emergency levies now count against your 20 mil floor. So we went from from 20 mils to to up in the 30s, which means we will not be back on the floor for quite some time. Because of that, the normal reappraisal increases that that have kept this district kind of going for years are no are no longer something we're going to see. And that that bears out in our forecast. That bears out into the graph you showed where our our revenue is a flat line going out through 2029, 2030. Um and and so with with no extra pressures on the with no with no extra revenue, you know, it just becomes we're in a cycle of having to do reductions every single year because the cost of business goes up every single year. And that
063and that is the same for every business every school district. Um I think coming from spending time with a lot of school districts' treasurers, I think there are I think there are two types of districts right now. There are districts who are in tough financial times now and there are districts that will be in tough financial times in a few years. Um some of it is a function of how much cash on hand these folks have. And if you have a really high cash reserve yeah, you you you can weather a few more years of the storm. But but the storm is coming. Questions? Okay. We are a fun group today, aren't we? We are. Yes, I'm sorry. >> [laughter] >> So I'm sorry. I've deflated the room multiple times today. >> and what I
064want to at least Comment that on the looks like there is a for the May 5th election, there is a significant amount of income tax levies. Yes. That is um a big increase in the number of districts that are going with the income tax. And I suppose this is um occurring because of the current new legislation that's been and is So but it it'll be interesting. We'll have information about the success of these levies uh in in early May. Correct? Yes, we will. >> And that might be helpful insight. Yes. Okay. We We certainly will, I think. Thank you. I think a couple things are driving that. I think you know, income You're talking about this May or next May? May of 2026. Okay. Yes, there is there's a quite a list of districts that
065are Yep. Yeah. I think there are two things that are driving that. I think one of them is you know, income taxes are one of the things that has some inflation some some ability to bring in more money than than initially passed. You know, that's kind of how that works. You know, I also think there's the the constant conversation about the constitutional amendment to to eliminate property taxes. I think that has that that is definitely colored some people's thinking about about what they're going to ask the voters to do. So, we'll have that information of the results, you know, within several several several weeks at most. The results, they if we um from a facility standpoint, Mr. Burkhart, uh you know, we've been working on that what you put together at great effort. And as
066well as the uh part three of or phase three of the growth plan, uh part of that wish list. In your best judgment, what kind of uh money more are we thinking about as you look and if we concentrate not only on our buildings, but as as you have been so good at about camp uh whole all of our campuses as well? I mean, where are we in the ballpark now if we're talking this year, this this coming year, next year? Uh [snorts] I know we're not at the same dollar amount that we were. Yeah, it's it's it's a little hard to say, but I can I can paint a little bit of the picture for you. Some of this is contingent upon what the city and kind of where folks within the city are
067migrating to. For example, we know that the Winton Hills community, we have a lot of housing over in that area. We don't know what that's going to look like in the next 5 years or 10 years. So, our initial reaction is right now we should add on to Winton Hills. However, not knowing what that looks like, it's hard to say um in in 10 years does that become bigger or smaller? It could be they're doubling down. >> years. Or in 2 years, exactly. Um we know Sailor Park needs an expansion. Um we know that we were talking about an expansion at Walnut. Um there's a couple other schools that we think that as the growth plan goes into phase three and as we look at those sites, um we would need additional space. We are
068um on the west side obviously very tight with with um what that looks like. In the phase three or phase four or phase five plan, we had a new high school on the west side, which would be on the Heinold site. That would be roughly 100 million dollars there. Um so, if we take all those considerations in, I would say if I'm throwing out a number today and please don't hold me to this. >> won't hold you to it. >> [laughter] >> What we're looking at probably close to 200 million dollars. If we're looking at a brand new high school at 100 million dollars, so there's half of that right there. We know that there is work that we have to do um um some other schools uh and so, I would say right now
069we're probably looking at close to 200 million. Um but again, we have to look at part of uh the discussion uh later today is going to be about uh projections and where students are going and and so, we're also trying to to get ahead of that. Can I Yeah, I I guess my thoughts um I know at our previous meeting we were talking about the facilities repair. So, I'm just trying to balance how we are um talking about all the repairs that need to be made in the financial expectation that's associated with that and now transitioning to the expansion. I I don't necessarily I don't think we're necessarily at the point of talking about expansion when we still have as I kind of, you know, outlined at our last meeting, how do we prioritize the
070buildings and support those that we already have, right? So, I as I shared before, I am interested in that uh data, right, of that demographic study, um but not so much from a space of talking about expansion, um but how as our treasurer talked about, how we at this point even surviving, right? Um ensuring that we know how to uh effectively project out our uh student enrollment data, um and begin to um ensure that we are able to have our students within our buildings before we're talking about that transition to expansion yet. So, I don't know necessarily know if we have a baseline truly and accurately of where we are expecting to be, right? And then and if so, then how do we make sure that we're um leaning into providing that support within the
071schools that we currently have, um and stabilizing them and getting them to a a good space before we're talking about expansion of these particular schools that you've mentioned. Yeah, a lot a lot of fair comments. And so, as you know, obviously my priority is, you know, the 180 million worth of deferred maintenance and we want to make sure that we you know, tackle that and get our schools up to where um we need to. Um but also in the background as we think about what the district looks like a decade from now uh or more, just at least having that in the in in the back of our heads that we know the west side right now um we're strapped for classroom seats on the west side. We know at some point, unless the demographics
072change, that we will have to create more seats over there. Does that mean a new school? I'm not sure, but just putting those numbers so that the decisions the board makes along the way can have a 360 view of what that looks like. In relation to the demographics or the demography, um I attended a session at Metro and so, Metro has worked with um OKI and OKI has a lot of data already uh put together. So, we're going to be reaching out to them to try to get that data so that we can share it with the board to show some of that work that's already been done so we're not recreating the wheel on where they think the growth is going to be and where they might think that that there might not be
073growth or or decline in certain neighborhoods or certain areas. So, obviously that's that's, you know, wo- information that we're currently and always working on. Just like the the um the deferred maintenance, we're always updating that spreadsheet, you know, with with newer more um up-to-date information. So, as we see trends and as we see things change, we're updating that in real time. So, again, it's there mainly for the board to make informed decisions moving forward. Mr. Crocket? You picked that up down at that Rockingbird town hall last night. Rockingbird town hall last night. And this the uh city lead the city council announced that they're investing in uh renovations at Winton Terrace. So, maybe you might want to get sit the city information about where they're investing because that might help us determine where we need
074to invest in schools. Uh yeah, they said that's the first renovation they've done in that area in a long time. So, for whatever that's worth. I mean, there's there's other information we probably need to gather to help us. Well, I know the Reds find is expanding and spending a lot of money down at Winton uh Terrace area and that is the largest recreation center in the city. And very frankly, it is uh a stone's throw from our school. Uh but we don't know whether or not that housing community is going to still be in effect at 2 years from now. It's smaller than it used to be. As I used to go to school, all those folks, it was much bigger many thousands of years ago than it is. Well, same with Roll Hill. What
075if Roll Hill closes? I'm talking about the community because they're being sold. So, all these demographic housing uh facilities downtown. Uh what if uh City West I mean, all these changes that the city is making. I'm glad they're investing in Winton Terrace and that's the recreation commission, thank you very much, that's doing that. Uh but um you know, wow. The city isn't is not we have to find where they are doing that because generally their entire housing plan has not helped us at all. The the the strategy that we are finding ourselves in is is you were exactly right. We don't know what's going to happen 2 years from now in relation to that, but we also can't wait until after it happens before we have some a couple of different plans. So, it could
076double. It could shrink. And so, we have to be ready for both of those to to be ready because we've seen other districts who have waited until after folks have showed up and then you have modular classrooms all over the place and I don't think we want to get into that situation either. I'm all about being proactive, but again, as I stated at our, you know, I stated several times over and then at our previous meeting that with the growth plan, we've made decisions, we've moved students where in fact it impacted our numbers drastically and Mr. Galligan he talked about the decline with our enrollment. And so, as we're thinking about making decisions moving forward, I want to ensure that we do have, you know, as much accurate information as possible so that we are
077able to be strategic in our planning. So, we're saying the same things in many ways, but again, so I'm I'm about being proactive, but I'm also um adamant about the strategy that we apply to whatever decision we make so that it will ultimately yield the results that we're expecting to see within the district. Any other comments? You Somebody said something about transportation. I know we're not uh Okay, good. Thank [laughter] God. It's the T-word. Uh as we are beginning to lose our our our quorum and we do want to have our our time to to end because I know the next thing is happening relatively soon. Is it What's the likelihood of another facilities uh report that takes into a consideration where we are uh what's been done, what you foresee and what um would
078be part of the if there's growth or there's change. I mean, where are we close to having that newer version of the old version as well as a maybe a newer version even of the growth piece? Yeah, so we have the the I'm going to call it version three of the growth plan which is which is beyond just uh what I'm going to call right-sizing the the schools within itself. Um we are looking at the current um uh projections moving forward. Looking at those under-enrolled schools um to figure out what that actually means long term. Is it Is it under-enrolled for a short period of time or is it under-enrolled for a more longer period of time? With that, we will be putting together with the information from OKI where we think we would need
079additional spaces or where we would see spaces that are diminishing to the point where Again, these are all scientific guesses of what's going to happen over the next decade. Um we know that that as different uh factors push and pull on different communities and different neighborhoods, they could you know, increase or decrease in their in their enrollments. Having lived through the FMP 1.7 billion the number one thing is to be as close to being right as you can be and knowing that you're going to be wrong. And and so the the result is flexibility. Because even at the end of the facilities master plan when it was finally done, we still had to add six more buildings. >> [snorts] >> We still the state was still wrong about what our projection was going to be.
080They thought 28,000 and it wasn't that. So the the idea is whatever we're doing, we have to be flexible even when we even when we close a school which we've done or where we in facilities master plan, we had to move money from one school project to another. And classic one of them was a money out of a Westside building because we determined that and we closed it down and moving it, if you will, to Aiken because initially we didn't think Aiken was going to be as large as we then figured out it was going to be. So it's still moving but the flexibility [snorts] but you can only do the best that you can do. And you're going to be close but knowing what's what OKI is saying, that's critical. Knowing what [clears throat]
081the city is saying and knowing where we can join with either private investors or other public investors like the recreation commission where we can join together to do things and use the same resources or combine the resources. But is is critical. Any other comments for the good of the order as we finish out? CFT? Okay, Madam President, are you okay back there? Brain trust, everybody okay? All you big brain people? I have two Go for it, Mike. >> Brad I'm Brad. Brad has >> Just wanted to remind the board members who are present um of your fiduciary responsibility as board members. Um it's very very clear. But again, based on state policy, state government, state legislature we need new money. And so I hope that this board recognizes that that is your responsibility and that
082you act in that manner. Thank you. Thank you, Brad. Appreciate that. Two things, lightning round here but but just for Excuse me, there were um three CRA agreements. Yes. >> Um so all those that that are in the slide deck, those will be in the treasury report. So give you the heads up on that. Um and then also the unclaimed funds report. We do this annually. Uh we are allowed to move unclaimed funds over 5 years back to the general fund. >> Correct. So we will be moving $8,423 at the end of this fiscal year back to the general fund. So I wanted >> money. Yeah, so just just for the awareness of this committee so you know, so when you see it in the treasury report, you know, you you're you're aware of it.
083Appreciate it. And we will submit the rest of the financial reports as written. Absolutely. Thank you all and uh a good day to everyone.