001has one hand in the park. They know they follow me. Sorry. All right. We would like to all this >> setting it up from the last we're going to get started here. So, we're going to call the meeting to order and we'll start out with the weekend and join me. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. >> Thank you. And I think the first order of business is to approve the previous minutes which are on page second page of your handout if you haven't had a chance to look at that. And um in my review of the minutes I do not see anything uh misstated or wrong. So, I would like
002someone to uh make a nomination to approve the minutes or a motion. Thank you. >> I will second these very detailed minutes. >> Very nice job. Yeah. >> Yeah. Very nice job. So, is there a motion a first motion to approve? >> I thought you approve and a second. >> So, all those in favor raise your right hand and say I. All those opposed, raise your >> say thank you. >> All right, minutes are approved. Thank you. Um, also before we go too far, reminder, put your cell phones on silent so we don't have ringing bells in the middle of our meeting, please. Thank you. And then, uh, Cece, do you have additional Q&As you want to go over? Um, yes, those are in the packet that was mailed out. So, that starts on actually
003starting on um page six and seven are questions from last time that we already reviewed. So, if you move to page eight of 12 in the packet, it says page three of the question and answers. And um thanks for submitting those. Again, some of that materials, a little bit of a review, some of what we'll be going over tonight, some of it next meeting, but if you want to go ahead. >> Yeah. So, um couple I'll highlight and then if we as far as other questions, please feel free to stop me. So when you look at the top of page three, uh first the silver school grant was announced. Uh we did receive that. Uh that amount is uh 934,000 per year for the next three summers. That's 2 the summer of 26, summer of
00427, and summer of 28. Um and just in the past that has been a yeartoyear, literally a year to year that we have had to apply for it. And so this gives us a little bit more consistency. And then you can see the two years prior of the costs that or how much the grants for the prior two years that we received. Um we did at the last budget uh meeting mention about a hiring freeze. We've actually been in a hiring freeze since January. Um as we saw enrollment declining, we felt that that was uh at that time it was uh important to do that because we are trying to make sure that no core instructional programming uh is being affected uh by what we're having to work through in the budget process. So again,
005those are the key areas of focus right now as we um continue to look at our budget where enrollment continues to decline and our costs continue to increase. So just so everybody knows, and we'll continue to do this, as of May 15th, our enrollment was 2,869 students, which was down another 12 students from three weeks. So again, we still see the decline happening uh within the within the school district. So, a little bit about that piece of it and that's part of the reason we started to make those decisions and really deciding what would be posted, what would go into attrition and potentially not be filled. Uh, positions are moving to the 26 27 school year. You will see some positions are starting to be reposted. Um, if you look on their website, as an
006example, we reposted TMS has a 0.5 FTE for band. Um so again some of the positions that we we knew we were gonna need to post those are starting to to post up on the website. >> Um again from the layoff perspective um we have started that process uh what I can tell you and we're going to just do this generally is that we uh title funds which are federal funds because of the as we shared last time title funds are flat. Uh we have laid off three staff that are under federal funding from the title perspective again because we continue continue to have increased costs. Uh we've also laid off five from the general fund uh because of declining enrollment. Most of the other staffing cuts are through attrition which means we've either done
007it for those that have retired or there have been resignations and we are not filling those positions. Um so again we we are continuing to go down that. Again there's when you do layoffs there's bumping processes. So we have language in both our licensed and classified. Um so there has been some bumping processes uh for positions that we um you know had layoff. So that's never fun. I'll just be honest with you. It's been handled as best as possible. Unions have been involved with it. Um but again we are trying to keep our core instructional programming uh to not be affected through this process. >> Um >> quick question on that title funding. Can you refresh my memory on what that is? >> Yeah. So title title one funding where where some of the cuts
008are coming out of is specific to the amount of poverty we have within the school district. So we get extra funds for additional um staffing or I call we can use that for supplemental curriculum those types of things. Title two which is most of where our professional learning training comes out of. So that gives us an opportunity to do those pieces. Those are probably our two largest uh funded um title 3 is a little bit tied to our emerging bilingual students or students with a second language. And then IDA is specific to uh additional funds for special education. >> Those are all that grow. >> Yeah. >> Thank you. >> Yes. Um however, I will tell you because just because those positions are being eliminated doesn't mean that the work doesn't change. So all that
009work will be redistributed. Um we're in that process right now. That's going to take a little bit more time. Uh but that as we look at the organizational chart um there'll be some redistribution of um duties >> number 12 same >> n that was 12 >> 13 um I'm actually going to have director uh executive director Halman come forward just um to talk a little bit about curriculum uh specifically what you're looking at here is line 420 20 or so the question is from the budget line 420 is well under budget um is that because you haven't purchased curriculum or because it's been purchased out of other funds so you can see below there's the I'm going to call it year-to- date funding general fund of 20,000 title one which again is supplemental curriculum approaches
010that we use intend to buy intervention materials and those types of things out of title one again something above and beyond what our four is and then the high Joseph's children grant that which he just received. So, anything else you want to add to the curriculum? >> Yeah. So, the curriculum, the funds that are represented in that document are capturing textbooks and technology correct >> like licenses for textbooks. >> There's other materials that we purchase that are called consumables. So, when many of us went to school, we had a textbook that we would get checked out to us for the year. um we now buy a consumable that's that book. Um so students can highlight, take notes and do things in. So it's not a it's no longer under the textbook category. It's under a
011consumable which is a part of consumable materials is pretty much anything that we are going to do as a one-time non non long-term investment. So there's a huge amount of things that get funded into or get paid out of um >> Materials and supplies. So, um I'm trying to go through look at some of our our POS and our um our invoices that we have from companies to try to collect more information on the specific consumables that we have purchased. But that that was a big chunk of our math adoption um um this last year where were consumable materials. So >> um and so what line would that be then? that 410 >> and that would be yeah 410 um 410 instead of 410. >> Well 410 in is >> everything from >> toilet paper
012to consumable math workbooks. So it's going to be that's why it's hard to pull out of fun now that we just use these items that are replaced every year >> like one time thing. >> Yeah. Okay, thank you. >> Is it quite difficult to codify those in a different way because it does seem like that would be useful to know what was >> Julie is going through her invoices and purchase orders and trying to find a way. There is an entirely new general ledger chart of accounts coming in a year and they actually break these four 10 supplies into seven or >> okay >> to 10 different categories. So everything we buy we will have to figure out which one of those it goes to and um so yeah >> that's going forward. Yes, >>
013that will be going for and I we can narrow it down, but it's it's just not on this framework. >> So, we'll try and get that information for you as we we collect that and and get that back to you within uh this question. >> Okay. >> By like next meeting >> that's hopefully our goal. Yes. >> Yeah, >> we um so the next one I'm going to have uh executive director Flannry come up. So, one of the questions that we are asked is how do we pay per staff for insurance? How much do we pay per staff for insurance? Um, again, you can see here there's an annual cap per employee. Again, that's for medical, dental, and vision insurance. And again, all those are based on our bargaining agreements. Um, and then we do
014have agreements with non-representative, which is our admin and our confidential supervisory. Um, anything else you want to add from from that perspective or questions for that? Again, we're in negotiations right now, so I'll just leave it at that because that's part of the process. Um, you can see just generally sort of high-end costs for the for year. And then, um, anybody that opts out actually gets an HA specifically for that. And that's, uh, again, all that's in contract language as well. Most people most people >> it, you know, depends on on there's there are rare exceptions, but there are some some people that do not qualify for. Most people that opt out get that. >> What does HR? >> Uh, it's a health savings plan that um you're able to, you know, put the funds
015in there and use it for things that um might not get covered. So if you for example you go to um uh go to get a prescription filled and that can be utilized to to pay for that prescription and anything that's under the IRS that's acceptable or H that's medical related you can use H4. >> It's a that's a good situation especially for for people that have two two more people in their their family. one might have a health plan somewhere else and so they ought to um have the health insurance there and then they're able to use this as a way to supplement some of those health costs by by using H. >> Thank you. >> Yeah, >> that was only insurance and and benefits, >> correct? >> Well, I brought up a question.
016I didn't see any place in here, but since you're the general kind of person to talk about, what is our percentage between what the amount of budget the teachers get and the staff get? Is it 15% 85? Is it 60 to 40? What's the percentage? >> I'm sorry. Say that again. I want to make sure I hear you. your classified people that worked here and and we get the 8,000 whatever it is per year, you know, whatever the amount of money is or $9,000 here. >> What is the percent? >> Oh, we're going to get to that. We're going to get to that. >> I don't see that about the insurance and and >> Oh, >> the difference between the caps is what is the difference between what we pay on insurance for our staff.
017That's what I thought you were asking. >> No, that wasn't it at all. So on a question I called in and asked about Okay, we'll get that later. Okay, >> that's that's how I recorded it. Sorry, that's that's how we recorded it is. >> My question was what is a >> Yeah, I've been several budgets and this is the most general budget. It's never broke down to anything. I mean, it's you know, you go to budgets, the other one that tells you how much everybody's get paid, where the percentages are, the cost per hour, overtime or your cost rate. This one here is just kind of general. I understand that. But I ask how much on our on our money is does the percentage we pay the teachers and the percentage we pay staff of
018the money a part of that $8,000 or $9,000 we get a year. So do we pay do we does 65% of it go to teachers pay? 80% of over 80% of our budget goes to staff. I want to be really clear about that. >> I was that's >> so 80 over 80% of our budget is specifically staff. And when I mean staff, that's licensed, that's classified, that's administrators, and that's um confidential supervisory. So again, a majority of that budget that we have is in this first when when we get to this, you'll see our major costs are up in those three areas. >> You haven't answered my question. >> Um I'll show you around when we get to the expenses. >> The percentage looking at the amount of money that we receive, what percentages go
019to pay staff, classify, and what the teachers get. That's what I'm asking. You don't you never break that down any place. thousand or millions of dollars, whatever. >> Yeah. The total dollars that teachers get paid in the general fund versus the total dollars classified get paid is on this expense report. So, we'll get there. >> You can see those differences. I didn't calculate the percentages, but >> I just was trying to put the numbers points together. You always talk in generalization, but generalization doesn't all say how much are we really producing to the students, how much the special education, how much scarable staff gets and everything. That's all I'm asking. I've been on budgets before and this is the only one I've ever seen that never breaks it down. >> I mean, you go to
020a city budget, every police officer is paid for, every person in everything is lined out. Why? And I've never seen >> and we have 400 employees. >> We can give you that. I've seen them from over a thousand. Doesn't make any different. You go online and find out a lot. I'm just trying to put things together. We're all trying to crunch numbers, but I'm trying to see what the numbers crunch up. >> We'll show you when we get to the expense site there. It's right there. >> But it is over 80% is what our our status of our bud overall. >> Yeah. But >> so, but I hear you. We'll get to that. >> That will be in >> um 15. Um, as our enrollment drop, how are we adjusting transportation? I'll let Cece answer
021that. >> So, the that that doesn't really correlate, right? Um, we we have full buses. It's not like we're running empty stock, rolling stock. We all of our buses um we we have routes in the city that are just packed, right? They're more than a mile and a half for secondary students, more than a mile for elementary students, and those buses are quite full. Part of that is because we have fewer drivers. So, some of those bus routes get get pretty full, and we don't have any extra drivers. The payment for transportation is miles, not students. So, our reimbursement for transportation doesn't correlate at all to to enrollment. And basically other than you know the number of kids who ride on a rainy day is more than the number of kids who ride on a
022clear sunny day because they ride their bikes. There's not really a lot of um difference just because our but again we're reimbured just as a reminder 70% not to the full dollar again like we shared before. So I think that's really important for people to remember. It's transportation is not one for one. It's one to.7 um as we as we budget for uh transportation each year. Uh so next question as we're giving raises and negotiating raises in the contract that means that the amount we have to pay in PERS goes up. How much uh have we added into the budget? We're going to talk about that but I'll let CE answer a little bit of this tied to the PERS specifically the components of it. >> Yep. You'll see the again PERS as a separate
023line item when we get to the expense page. Um we pay three parts of PERS. One of them is their the actual retirement rate. You may have heard of uh tier one, tier 2 PERS and then tier three or observe PERS. um we pay one of those two on every employee depending on when they were hired into the public employment system. So that rate is set each bianium. We know what that rate is for the come coming year for every dollar they earn. So we calculate that as salary dollars go down as we have attrition then the that part of the PERS goes down. The second part is every uh public employee has to pay 6% of their salary into a separate account. We pick that up. Some some public employers don't, but central school
024district does. Most school districts do. Um so obviously that's a flat percent. payroll dollars go down, the total amount of that goes down. Payroll dollars go up, the total amount goes up. The third component actually kind of works inversely a little bit um to salary. That is a an general a PERS obligation bond. We took all of our PERS debt and refinanced it um as most districts did about 20 years ago. That has paid off handsomely. Um the earnings on that have counted towards buying down our PERS retirement rate for our employees. It's been very helpful over the last 20 years. But that bond payment increases around 4% a year. So if our salaries go up 4% and that bond payment goes up 4%, we're okay. In a year in which our salaries are going
025down or not increasing by 4% overall, but we still have to make that 4% more in bond payment. we have to charge ourselves a little bit more to set aside money to make the bond payment every two. So the pers line item is more even if salaries go down potentially. >> And she's put in there a little just graph of the debt service over the last >> yeah four years bond >> going into next year as well. And that again is not that that comes out of our general fund to pay that. It actually we charge all of our funds a little bit for it. It every for every dollar of payroll we pay we calculate how much we have to set aside to make this bond. >> I I have >> um okay I
026have a question about um it matures in 2028. Okay. And that means that um everything will change probably based on the way it works now, right? And who decides what the cost is? The legislature >> a pers. >> Yeah. the >> all of this like T1, T, T2, you know, >> the PERS rates themselves for OPSERP and tier one, tier 2 are set by the PERS board. It is a very complex actuarial formula. They're trying to calculate how much how much we owe retirees that isn't funded. we don't have enough money in our account pay the retirees forever and ever and they calculate how long they're going to live and people who are in tier one tier two have a defined benefit. They get a a defined benefit based on assumptions of how the earnings
027will grow and the earnings aren't growing at that rate. So there's not enough money in the pot to pay them all for their length of their retirement. So PERS has to charge us more to be able to start making that up. So we have to pay more and more and more each year. This PERS bond has kind of been an insurance policy. It's offset those rate increases a little bit. That PERS bond will u mature. We will not be paying the debt service. Yay. We will not be paying this 292.9 million3 million a year, right? >> But our PERS rates will increase drastically >> to the point where right now for every tier one employee, tier 2 employee, and most of them are retired out. We still have a few left. We're paying 19 cents
028on the dollar for every dollar we pay. and 16 cents for all the rest of us. Those rates could double in 2028. >> And there's a lot of things that are going on um again with um the financial group. Uh there's some things that are happening in uh this uh June to see if it's worth school districts. Again, a lot of times when you have these bonds, they go into a I call it a consortium where they all go in together to see if they get a better rate. some of those conversations are happening right now to just take a look over the next couple years is as these those of us that are in these mature out of them and is it worth are the rates going to be well enough to maybe do
029it again. We're I think we're in beginning stages of that. Um and we'll continue to work through that. But um we may not this could be a new area for not only us but anybody that deals with uh public employees and PERS and some of the concerns of costs that will be coming forward in the next couple of years. That's all public employees not just school districts. >> Well, you had a question. >> Well, it is I saw that it matured at 28. that that one >> it it it partway through 27 28. >> Yeah. >> So the the 28 payment is 1 point >> Yeah. >> 5 million unless we don't have enough. >> Then you're going to have to make that >> then we're going to have to make it out. So I
030didn't put that on here because >> that's what I was trying to >> figure out what you had all on there because I know you're not school district wasn't you know the city the county everybody went to that bond at the same time. It was kind of spinny to begin with, but over the 20-year period, it has really paid up. >> Very helpful. >> Couple years ago, uh, districts looked at at starting a new bond or refinancing this the end of this one and getting a new one and um, it's just not made sense. >> No rates, >> interest rates. Darn them. Darn those interest rates. Well, I was curious like in any one of these years if you didn't have that bond, what would be the total PERS contribution amount? Like just to get
031a comparison contribution bounds much more than that, but it's um the calculation of what it would cost if we didn't have that offset. I have a whole cool spreadsheet on that. The created value, you'll love it. I'll for anyone who wants to see how much the bond has actually it's contributed to our unfunded actuarial liability versus what our debt services. >> So it has been saving money. >> Oh yeah. Okay. >> Oh yeah. I mean again that's partly why anytime you're going through this you should look at if you can go out again I think we're interest rates are high. I we all know that. So, I think we're doing some exercises to just make sure we're putting ourselves in the best position that we can over the next few years as it comes up.
032But they also >> Yeah, >> they also make assumptions like your total payroll will go up x% per year. And we were coming out of ESSER funding. I knew our total payroll would actually be dropping because we had extra money to hire extra employees. Uh, so I know we would have been really in bad shape if we done that a couple of years ago. So hopefully that can change. >> We talked about bus lease about bus lease payments and how much they've gone up, those types of things. >> Ask if they've gone up. They're actually going down. Um we we started in 2018 >> 2015 leasing buses um lease to own. So they used to be on a five-year lease. Now they're up to seven. Um, but basically we were adding at least one to
033two buses every year so that we could just kind of keep that debt service payment going. Uh, we last purchased a new bus in 2023. So as we are paying off those old leases, we are not rolling in new leases. Uh so that's the debt service for buses which comes it shows up in a transfer line. We we receive the revenue as part of our transportation reimbursement. We receive it into the general fund. We transfer to a debt service fund to pay that. But those are actually going down as we haven't been able to commit to get new leases. costs have gone up as have interest rates. And so, um, it's been difficult in a declining budget to build that up. >> So, next question. We get X amount of dollars per student in funding.
034How much of that goes toward teachers pay and how much goes towards other expenses? So, just a couple things. So, we get about average 11,000 per student um on our weighted student membership. And again, that's um our special populations are part of that. So, our emerging bilingual, our students experiencing disability, students in poverty, right? Those are weighted um pieces. So, we get a little bit more depending on what our weights are for that. Again, you can see most of our over, like I said, over 80% of our budget goes towards actual payroll expenses for all staff. Again, we'll go through a little bit of that today. Um, and then you can see the state school from payment is projected to roughly 34 million, a little bit more than almost 35 million. And then when you
035put the benefits and everything together, it's it's up over 40. So again, that's that's a majority of where our funding is spent um is in our staffing specifically >> 81%. Between salary and benefits >> 86 to 88 >> with the the two times. >> Yeah. With the in the expenses. Yeah. Um so again, and we'll we'll go through that because that's on the expense side of of the document. And then uh how much are we spending on uh >> per uh per student for uh special education with uh higher needs? Again, I know last meeting we gave you a chart on how the districts reimburse for our students experiencing disabilities that fall under that high level of cost. Just a reminder that we are required to pay the first again we get 11,000 per student
036but we pay 30,000 or up to 30,000 and then we would get reimbursed anything over the 30,000. Um you can see again we have lots of different allowable costs that fall into that. Um but you can see here that those rates continue to um decline even though our numbers continue to go up. I gave on the Friday report to the board I think three years ago it was 54 cents per dollar. I think last year we were at like 38 and we're projecting it to be between 22 and 25 cents per dollar for this upcoming year. So you can see down again that gives you the last since 2018 our actual costs and then what was allowed costs the number of students and then the reimbursements that are there. So um we continue to go
037up in those costs. were up over 5 million. Again, allowable costs is over almost uh 4 million even pretty much doubled even since last year as have the number of kids almost and then you can see our reimbursement there projected. So that's an area legislatively we'll continue to uh make noise is how I like to say it in a in a appropriate way with our legislators because this is something that needs to get fixed from a financial end and needs to be better one to one than 0.25 to one. The the reimbursement is a a set pot of money. legislature sets the pot of money for that grant and um then as school districts serve students, they estimate how much they're going to need. And then when they actually do their reporting, that number statewide
038just continues to grow. The dollars required to support those students continue to grow. The pot doesn't. So that's why that reimbursement gets to be smaller and smaller. Um, and I also note that we we talk about $11,000 per student in these special population weights. Any student on an IEP we get an extra weight for. So basically one of these high need students is as if they're counting at two students at 11,000. So, we're getting 22. We're expected to cover 30. And then anything over the 30 is what we're getting the cents on the dollar for. >> Did is that reimbursement? Is that set per quarter for every six months? I mean, that's what I'm asking. >> It's a year at the end of year in J July. >> Yeah. So, in May, >> we get
039an estimate of what we should get this year. Next year we get a look back. So if we estimated exactly ex if we knew exactly what we were going to have and we reported it, they would pay us an estimate on this year in this year. But by the time next year rolls around, they have all the actual data from all the districts and that's when they do the look back which typically I mean this year we we got an extra hundred,000 out of it but um some districts lost millions because they overestimated or they spent it but the reimbursement ended up being so low. And you have we we have had problems and I'm just going to speak across the state frankly. Uh some districts when you do your estimates have put in zero.
040There are there is a large I'm not going to say which one public school that has done that for years and they are very large. And so then when they put in nothing and then they actually put in their full estimates it just causes the whole system to shift. So, there are some things we're trying to solve legislatively because when you have one of the largest school districts put zero and I know that they have students experiencing disabilities just like we do, um it it it really does mess up the formulas of which they're trying to make estimates about. So, I think there's some things across the state um that just we continue to ask to be cleaned up as those of us superintendents that would like things cleaned up so it can be a
041little bit more consistent. Um I think those are some of the things that we continue to work through because that can cause issues. >> Better to budget zero and get >> $500,000 but it screws up all your >> That's not a budget. >> No. And that's some of the issues that we have. I think just in this state generally, we budget very different than any other state that I've been a part of. So, it's just um there's there's work to be done and we have to continue to work at it. And I think this is one of the areas the board knows this tends to be one of our hot topics of where we when we start legislative sessions, it is the making sure that we're trying to increase the costs or the reimbursement districts
042get for our highcost disability students. And I want to be clear, right, our job is to serve every student that comes through our doors. And so, uh, we do that and but this is one of the areas that that we will continue to advocate for for more funding that needs to be, um, equitably distributed. >> So, those are the questions we got. If if you did send more questions, we will answer that. We just, again, as of midday today, we needed to get things ready and and get them out to everybody. So, um, keep sending us those questions, uh, so we can answer them for you. >> Perfect. Well, thank you for that. Um, we I think has been mentioned or it was in the emails or something, but there will be a full budget
043committee meeting on June 1st. So, we'll have a whole another opportunity to go over more questions, which is good. That's the whole point of us being is asking the questions. Um, and Royal to your question when when they do the presentation of the budget, we'll dig back into that as well. >> I hope so. >> Um, so the public comments, we didn't have any public comments today, so we won't be doing that. >> Um, so the next thing that we'll dig into is the budget. >> All right. >> And I know I was crunching some numbers over here, too, to Royal's point. So, it's a it's a good point, and I I know we'll cover that. >> You got a couple of ways to look at that. >> Perfect. So, I'll let you fill that
044out and that cease. >> So, just a couple uh different items that I just want to bring to again as I said, our goal really is we want are trying to keep all the core instructional pieces in place academically. Um again, couple of priorities any type of legal requirements. Again, a lot of that's tied to um special education, but then other legal duties tied to 504. Lots of different things we are legally required to make sure we have in all areas. Again, we're in the midst of negotiations, so we've got contract contractual obligations that we're still working through. That could be anything from raises to step increases to longevity pay. Um, all of that is uh part of what we're working through right now. we are going to continue to support students experiencing disability or
045our special education population and uh the needs of all of our students. So that continues to uh be at the front of that. Um we have had as we've talked about layoffs um to some degree special education is an area that there will there will be no layoffs. We've been really clear about that. Um so that is an area that has not had any and will not because that is such a compliance piece within the school district. Um so there will not be cuts to special education. Um that is one area that we've been very very clear with everyone that that there will be no cuts there. Um we because of who we serve we have chose to have a nurse in every building. Um that could be anything from students because we have a
046lot of needs tied to diabetics let alone medical plans um very detailed medical plans for some of our students. So uh the nurses lots of feeding protocols um especially with your students with high high needs and so we have decided to keep five nurses that is very expensive but it is a need within this school district. Um so again that's a a priority and then again how we are uh spending and investing in our student growth and achievement tied to core academics and and that we're staying focused on the K12 curriculum and again those three areas this year are health science and social science and the board got an update about that at the last board meeting. Um, again, just the areas that we're not funding, we're we're making cuts. As I said, if we
047have resignations or retirements, many of those are not being filled. Um, so again, through attrition, we're we're doing that. Um, so that will continue. We had a couple this week and we'll continue to do that and make those decisions as we move forward. Again, we're needing work on aging facilities. So, we're just trying to make sure that the basics of our maintenance are taken care of. Again, that's a a constant uh a minimal contingency for emergencies only because that's going to be part of it. And then next meeting, we're going to talk through our grants. Again, some of that is title funds. Those title funds are flat, which is a decrease. Anything flat, our costs continue to go up. Um, so our federal funds are are flat. Um, but we're going to have uh increases
048and so that's again part of what we're just still working through the grant side. We are still having to make some move. That's why that's not in front of you today. We're only going to be showing you the the general fund at this point as we continue to work through grants which is why we are going to have a meeting on June 1st so we can go through those as well. >> All right. So general fund our presentation tonight to you um is about that. So just our our sort of quick facts the um state school fund is the biggest source of revenue in the general fund. Its primary source note is state income tax. So that comes out of the state of Oregon general fund. Um it the state school fund is allocated based
049on enrollment waited for special populations. When calculating the state school fund, we get credit for the better of two years enrollment. So when enrollment's going up, they look at last year, current year. If you're going up, you get current year. It's higher. If you're going down, you get credit for last year's enrollment because it was the better of two years. But if you go down enough years in a row and then you're done taking advantage of all those good years. So that's where we are. Um, and the state school fund when it's calculated, it's like every state budget item is a two-year aotment. It's let it is appropriated by the legislature. In the odd number of years it goes for two years. In the first year they calculate us getting 49% of the pot of
050the state school fund pot and 51% in the second year acknowledging that everybody's costs go up from the first year to the second. So even though we're we're getting a bigger half, if everything else stayed the same, we would have gotten a little bit more. Um, but because of this enrollment factor, looking at two years worth, we're not getting a lot more, which brings us to revenue. So again, uh, and we'll go through the line items, but property tax revenue in the general fund is based on our permanent rate, a rate that was set in 1992. That rate never changes. It's a rate per thousand of assessed property value in our district, but that is subtracted from our state school fund calculation. every district is um we will be looking at the line item called
051indirect um charges to grants. So whenever we have one of these federal grants for a state grant, we get to charge the grant something for our indirect or overhead costs that is recorded as revenue in the general fund because that's where all the payroll people and the HR people and the business office people and the grant managers are in the general fund. So that money we charge it in a grant fund and it's revenue in the general fund. As our grant revenue drops, that revenue drops in the general fund. Um our state school fund allocation we'll look at again we mentioned it's about up about 700,000. Um but our total operating revenue, the property taxes, the indirect interest, all those things plus the state school fund is only up 86%. Our costs were more than
052that as you can imagine. So expenditure side as um Dr. Vista mentioned we are still negotiating salary and benefits. uh we do have that increase in the pension bond that I mentioned. So even though if overall salaries are depressed that's goes up. We have um experienced significant increases in workers comp um our workers comp modified rate. So they calculate this is what all all school bus drivers in the state here's a here's a rate for you. Then they um calculate our experience modification if we've been great and accidentfree districtwide. That experience modification could be a negative or a very slight m positive multiplier. ours has increased significantly because of some very significant injuries. And so our workers comp cost costs have will be up quite a bit. Um unemployment we used to probably pay I
05310 maybe $12,000 a year in unemployment for employees that had had truly been laid off um had left employment. Uh and a couple years ago, uh the state passed law that school district employees who are paid on an hourly basis can apply for unemployment during our regularly scheduled breaks. So winter break, spring break, and summer break, they can apply for unemployment. Um our unemployment went from about $12,000 a year to it's about $30,000 a quarter now. So we have an account to them. Um, and because of the great benefit of paid leave Oregon, I mean, our most of our employees get sick leave and um, have some other personal leave, but they can use paid leave Oregon. Um, and so they are able to take care of their family needs. Um, but we we do
054have to get subs for most of them. So, if I took leave, they just do without me and uh, get by. But uh anybody in the classroom we cannot just do about a teacher. So those some cost you will see on the expenditure site. All right. So to the handout your first um page is the revenue page. Again this shows you actual expenditure history. You have greeny columns, three years toward the bachelor expenditures. >> The purple um for those of you who see purple is uh the budget and actual year to date for the current year we're in. So it does not reflect a full year. Um the actuals are as of April 30th. So that was that does not show revenue that we received in May for expenses and we went over that last
055meeting. So I'm not going to go over that. But the orange column is our budget we're presenting to you tonight for the general fund. So you will see that the property taxes go up. again that that rate is frozen but the assessed value stays the same. I we are predicting this is what it'll be and in November way after this budget is approved we'll get our assessment information from the counties to tell me if I'm even cult um the next >> and it's a calcul it's it is a calculated it's not just a arbitrary in the air we have calculations that help us to make sure that that is correct as close as possible. Again, there's still fluidity when it comes to taxes that again, we can't we we have a good formula, but it's
056not perfect. >> Yeah. >> As we work through this, >> Pulk County, our district had been growing, so we were getting far more than a 3% increase. Even if we budgeted a 3%, we we're getting more than that. We're not anymore. So, we've lowered that formula. I >> Yeah. >> Okay. The three purple line columns. Okay. >> All right. So, of those three purple columns, actual as of 43026, which column is that? >> The actual where it says actual 2526. That's our current fiscal year. where it says 8,225,000. >> Okay. So that says on April 30, >> correct? >> Okay. All right. Okay. >> So you can see we're 98.2% of the year in which is about right when we hit April. We're getting close. >> Some of you who made your last property tax
057payment on May 15th, I'll be getting your money here in. >> Well, okay. So what does budget as of by 1526? What column is that? >> Orange. >> That's the orange. >> That's that's our projections as of right now. >> The chair's not the budget. >> No, it's the budget. Uh uh the orange one. It's my note to myself that I prepared this form Friday night at 6:30 p.m. or whenever I sent it. I thought the orange column was budget. >> It's next year. >> That's just my reminder when I prepared. >> Well, the Okay. So, as of um as of 43026 >> percent to budget. >> Yes. >> Okay. So we are now past that, >> correct? But we haven't closed for May. >> Okay. Um, >> so we closed for April, so we
058won't close for May till end of the month. >> And so we'll have May and we'll have June. >> So in property taxes, we get we get a chunk in May. >> That'll probably put us over the 100% we budgeted. It usually ends up at about 101% of budget. In June, we won't get much because y'all quit paying your property taxes for the year. So, we won't typically get another big chunk until November of next year. >> So, on the property taxes, some of these other things, we we get more of them in May or June. >> Okay. >> Yeah. >> But the budget goes July 1st to June 30th, right? Correct. And the purple column >> is July 1st, 25 to June 30th, 26. And it's a full 12-month budget. Correct. >> Yes. >>
059Was that your question? >> Well, originally I thought this was budget. >> Say that one more time. >> I was looking at percent of budget. You know >> that that's how much as of April 30th we had received in the current year against the current year. budget. Okay. Yeah, it's a full 12 month. >> It's a full full 12 month budget. Yeah, because I was reading it wrong when I first looked at it. >> Yeah, we're only through this is only through April. >> Okay. >> So, yeah, you're right. You're two months short, so you shouldn't be at 100%. You should be at 10 out of 12%. >> But again, our largest, you know, again, we get payments throughout the year for taxes, but one large payment usually comes November. Some do come throughout the
060year and then we do tend to see our last payment penalty. >> Okay. >> Which is why we have interest on property tax. >> Why we have some >> correct? Not very much. >> Um so speaking of interest sort of another line items look at budget. Now again I just we went over the year to date of the last meeting. um it was as of March 31st because we were meeting in April. So that those purple numbers changed from what you saw at the last meeting but not by a lot. the orange column. Now, what we're predicting for next year, if you look at the line 15N, which is um interest on investments, that is money that we put aside in a government um funds. For example, we get a huge chunk of that $8
061million in property tax revenue in November. So we put it in a money market account basically with the state. We earn interest on it um every year. Sort of keep thinking interest rates might start going down which is good for bonds bad for earnings. Um but they haven't yet. So I'm keeping at 350. And if if the Fed drops interest rates suddenly then that revenue as you can see further back when we were getting esser money and a lot of federal extra federal money we were kind of keeping more of it too in um earnings. So those interest earnings were quite a bit more. Um, another line item then I mentioned the fees charged to grants which is line 1980. As you can see again that is as our grant revenue goes down the money
062that we'll be able to reimburse ourselves for our overhead cost goes up. Doesn't cost any less to have payroll people do payroll for people in a grant than it does if you don't have if you have three less people. But we'll get less money to cover that time. >> But you you'll only get that if you win the grant, correct? >> Well, we don't I mean this is money on the title grants which are not competitive. We get those. We know we're going to get those grants. We actually know our aotment. we can figure out what our percentage is. >> You don't put the speculative you put the uncert and I will tell you uh on last Monday this number was lower quite a bit lower but we got summer grant. >> Yay. So we
063can chart and the what's nice is the indirect rate on that summer grant is much higher. We can pay ourselves more of it. So this number could actually go double. >> We're having to make choices on the grants because they're not staying at the pace that those indirect rates are not they're getting smaller and smaller and smaller. And actually there's a couple that we're not even taking them. We're taking no indirect because we want to keep the services that the grant is paying for and they cost more each year. We're not paying ourselves anything on the student investment account for it, for example. And that's one of our largest grants. >> Yeah. Uh so that brings us then to the that first section is considered local source revenue. The second section is considered other state
064source revenue um or intermediate revenue it's called and that is mostly from our um education service district. So they get state money and they sort of pass it through to us for services. We used to take, as you can see on line 21102. At one point we were taking $300 400,000 a year from the Wamut ESD, transferring it to our general fund to pay for activities and services. Uh the following year we bought more services at the ESD so we had less to bring into the general fund and since 2024 25 we have not brought any of those >> and are spending more spending more hundreds of thousands more with the ESD. >> The nurses are from ESD. >> Correct. And that also is based on enrollment. >> So our their allocate our allocation is
065based on enrollment. So that number um is clearly has been zeroed out greatly affecting our general fund over the years. And the other one um I wanted to point out so state school fund uh we already mentioned that if you look at line 3101 we are getting almost exactly 700,000 more than we budgeted this year. And um the those below it are sort of this the special grants. And the reason that the $250,000 and the general fund are in red is because those can change uh before the end of the before the budget's adopted. So I've highlighted those in case I get new projections from the state. I could we could come back to you with some changes. That 250,000 is that high-cost disability grant. So although I budgeted 900,000 in this current year, we
066get a prepayment for 2526 and we get the look back on 2425. Between the two of those, we're a little bit overbudget. But if you see that next year, I'm only projecting that we will get a total of 250,000, that's because they'll take a look at what they prepaid us this year. >> And again, once they end up what everybody actually spent this year, they're going to take some away. I I just the way the trends have been going. So, I'm actually calculating that they're going to take over 250,000 of what they paid us May 5th, they'll take it back next year. And I'm also predicting unless the legislature magically puts more money in that pot um in next January and says it's an emergency and we get it right away that we're not going
067to get any more than no more than 20 cents on the dollar for the cost. >> Yeah, >> that's a major issue um especially for a school district like us. again that we're not the only one but um that's a that's a it's a big cost and and it's got to be addressed at some point. So the last line the beginning fund balance our 5400 that is our net working capital that is when we end this year on June 30th we're on a modified cash basis we will say here was all of our 2526 revenue from the purple column actual and subtract all of our 2526 actual expenses from the purple column on the next page and that is our carry forward. That is the amount that we um have available to start next year.
068I have a question. Yeah. At the end of the whole graph I guess I call it. Okay. In this light blue, it says OP and 0.86%. What's that? >> That's our operating revenue. If you take all just the revenue on the line that says total revenue prior to reserves are the difference between 45 215 and is less than 1% increase. So again, before you get to the 5,000, right above that where it says 5,000 other sources, you look at that again, total revenue prior to reserves, you're looking at budgeted, correct? I mean, if I'm right, budgeted 44832. >> Yep. >> And then if you look at the orange orange column, budgeted 26 2745215, our operating revenue has only increased.8 86 percentage points overall from last year to this year budget wise. >> So operating is
069>> um funds coming in >> operating revenue is everything except the beginning fund balance. >> So it's everything from the lines of except for the very last line beginning. All right. Thank you. Yep. Yep. which which when we flip over you'll see why we put that. >> Well, there I was gonna you know there's blue on the other page too on the bottom. >> Yeah. >> So, yep. So, that beginning fund balance I this year we have everybody has worked so hard and they have done a tremendous job of not spending. So I had originally planned um you know been carrying forward less and less as you can see I this is my projection right now of where I think we will end up this year with a net revenue in the general fund of
070this 5.3 million. we have another six weeks of spending. So, um that could change before your next version of this that we're going to ask you to approve, but that's where we are right now. >> And some of that's we have contract language for certain things that as we get to the end of the year, we have to write all that and make sure um all of those are met, those types of things. So, do you want to go to expenses or or other questions about um revenue? >> Yeah, I guess any other questions on revenue side? >> Yeah, that's let's flip over to expenses then. Yeah. And one thing I would say too, and I don't is maybe just me, but the another way to look at that 86% is that the projected revenue,
071the 35,474 is 1.0086% of the projected budget for last year. So for me, that works better in my head, but represents the 86% increase would be 1.0086. Yeah. All right. So, on the expense side, um, we start off with the payroll costs. And, um, I'm going to start off actually those first four lines, which are the salaries of lines 1111, one, 112, 113, and 114. So the salary alone, this does not include their taxes, benefits, and associated payroll costs. Um you can see Royal that out of our entire salary line item in the general fund of 23,52,000 uh almost a little over half of it goes to teachers. >> Yeah. Teacher salary. >> Just teacher, right? Okay. So that's the 125 is teacher salary in the general fund. >> Okay. So when you go to
072when you go to classified your national does that include the subs to subteers? >> No. >> Okay. That's why >> right these are literally just our employees. We contract for sub. >> I understand. >> And that's down below in purchase services. >> Yep. >> So we have our classified employees who are funded out of the general fund. We have our administrators uh which includes the building level but also our special ed director, our HR director, myself a superintend. So those are our um administrators and then salary confidential or confidential supervisory um those are the folks who um either well we have HR and we have our transportation manager, our facilities manager, our um not food service, our tech are in there. So folks who are um deal with confidential information but may not have an
073administrative license. >> Got it. >> They're part of either they're part of either the negotiations or they supervise. Those are the two factors. >> The the next big one there is 130 and that is called additional salaries. that is made up of um stipen payments that we make and we make those for a variety of reasons. The biggest chunk of that is our coaches, athletic coaches. So, they get an extra stipen for coaching an athletic team or even if they're not current employees, they can get a stipen for for coaching for us. Um but we pay other kinds of stipens. we have paid um you know for different club activities or different enrichment activities that folks offer um outside of their regular day. And it also includes um some some some of our differential pay
074that we pay employees to, for example, work with our special ed students, but a lot of that is actually just considered regular pay. So this additional salary is is mostly for those coaching and extra duty statements. >> Interesting. >> Uh the other thing that's in there is extra hours. So our hourly folks, if they um stay after to to work on something, those extra hours will be in there. We used to set aside and budget quite a bit of money for professional development, for team meetings and things like that outside of the school day and we don't anymore. Uh we do have time set aside because for example uh if they have parent meetings that have to happen particularly around special education. So there's still some extra hours but it's nothing near what we used
075to um hope to do for folks. Quick question too is you're talking about um hourly folks >> are is that classified salaries >> classifi they're the salaries there they are paid out >> they they are paid >> they all of our all of our folks are paid um a in an annualized pay. So, our classified folks have a calendar say you you are scheduled to work 187 days at this many hours a day at this hourly rate. We divide that up over 12 months to pay if they but then they also do a time card because they are not exempt. So, they also do a time card if they option. It's an anticipation when we work those hours. So, they are hourly. It's not it's not an annual salary that they're anticipate that that's what
076they're going to earn if they're if they're their cost of money. >> Are these the same ones that we're paying unemployment when it shuts down in the summer? >> They fall under that. They fall under that law. So yes, over the summer and in spring break and winter break, they could qualify for unemployment. Yes. >> Plus their what they're making on the the 12 month break. >> It's just their their 194 days worth of work divided over 12 months pay by this. >> And then because they're this year starts 7 to one, they're getting paid during the summer. So they're getting prepaid instead of postpaid. >> Yeah. >> So it's not like they're >> we won't pay that unemployment bill till October. So that is the total salary which as you can see it is
077yes it's down from the prior year you know um still slightly above 24 or 23 versus prior year actuals. And the second entire section is our associated payroll cost. So this is where you can see that the PERS um did decrease a little bit because of those two components that are purely calculated on payroll dollars uh with the slight offset for the PERS bond that went up. Our social security of course is a flat rate. So that that is based purely on payroll dollars. The other required payroll costs is where we capture that increase in unemployment and increase in workers comp and paid family leave. So that number uh is budgeted at over $500,000 and in 2324 it the actual was half. So that cost >> and you can even see what last year's budget
078was and what we're anticipating coming forward. So again, last year we budgeted 350 >> and right now we're sitting, you know, you can see where we're at, but there's still payments to be coming. >> Okay. And then the last line in that section 240 is contractual employee benefits and that's where we do have those health insurance caps that we mentioned earlier. That's where those are budgeted. So even though the payroll the 100 subtotal is down 600,000 the 200s those taxes and benefits are up >> not a good trend >> back these some of the questions I asked earlier I sent in and the other one was public employees retirement that's full 12% we pay as a school district they they contribute nothing to that purse >> right >> okay then the social security you pay
079seven and a half they pay seven and a half >> okay that's I'm just trying to make >> right yep 7.65 Six. Seven and a half. Okay. So, I just want to make sure if we were paying something more than other people were. >> Oh, >> that's correct. It's typical on PERS. >> The PERS is is typical in a district. >> Yeah, >> there are some districts that will not. Um, but it's it's not often. >> It's not as few. >> Yeah, it's very few. And they they you know, they they have to put that in when they're advertising for positions that they're not pick up. So >> it's assumed now that you you're entering enough. >> So that takes us to um the non-personnel um costs which again are a minor part of the
080budget and we'll go through those fairly quickly. Um the line 310, the first one there is where we put contract services or direct service to students. So, our classroom subs go in there and as you can see, uh those costs continue to be pretty high. Uh not not because um we in prior years we were having trouble filling positions. We could not hire for our vacancies and we contracted with a lot of special subs. Um that has not been the case this year. We've done much better, I think, at filling our vacancies. We have not used the temp services, but we still need classroom subs when our when our classroom staff is out. Um, this is also if we have uh we hire or contract with um people providing specialty services directly to students. Um,
081so if we uh have to pay a nurse out of the general fund, that would show up on this fund. >> Direct service to students. >> School psyches out of this. >> School psyches would be in that line if we contract y with them outside of employment. >> And the other, you know, sort of biggest line item in our whole budget is property services. Um, I don't know if y'all have gotten your utility bill or heard what your utility bills are going to be. Antonio knows the city of Ma just passed a budget, for example, with a 6% raise on electricity. And we only have two buildings that are not on Mand Power and Light and Pacific Power is asking for an additional rate increase on top of the 5% they already got. pretty much
082uh that and then we're looking at other utility costs but also um you know anything to do with fee bigger increase there >> you want to talk about 370 >> y so uh the other one we wanted to look at is 370 line 370 that is tuition paid that is um because we are required to provide a free and appropriate educa public education to all students but we can't meet all their needs and um Julie can give be much better examples than I could but for example if we have a student um who is deaf of and heart hearing we may not be able to provide all the specialty services that student needs. Um, and we we pay tuition to the Oregon School for the Debt. So, we transport the student to OSD. Um, and
083we pay for that. And there are multiple types of programs across the state that we do partnerships with. And based on the students that we serve, uh, we're going to need a couple of those over this next year. And so, um, that's why that cost has >> more than double. Yeah. Yeah, some years ago kind of light this year and we anticipate next year we got a couple of special needs that we're going to have to meet off >> that include like Bamic Career Academy and like >> that's different that's there's some of those >> $7,000. >> There's two of those in there but most of Wamic Career Academy comes out of the high school success grant which we'll go over at the next meeting. Did we still use that? >> We do. Yeah, that's
084that is a good example also. >> That's partly why this is so yeah very very very very intensive program um for some students with behaviors and day treatment program >> and we pay the tuition for that. >> What is it called? >> Folk adolescent day treatment program. >> It's on Ellenale and Dallas. They've been there for decades around program. >> Yeah. help a lot of behaviorally challenged teenagers. >> It has at least >> and there's a couple different programs that we have. The Wicked Education Service District also has one for younger and you know teenaged both all ages. But so that is a mix of of really all all three of those options for what we need to support students this next year. So that is kind of the 300C 390 line you will see
085went down quite a bit. Um and that is because um we when after we had our ransomware attack on our network, we uh turned to a professional cyber security firm and they did a lot of consulting for us partly as a result or during as we were remediating and really working on our systems after that attack. Um they also we now have software installed on all of our computers uh a monitoring software um that was uh we're going to just the software and we're getting some network help from the Wamd so we're not using their consulting services that's the main reduction here other things that are still in that because again these are professional and technical services that are not directly serving students. Um and and that includes um our our school resource officers, for
086example, you'll see those in here. Um and just any other sort of general consulting folks we have. We have a couple other smaller things in there. >> Are we still using um independence? Independence Police still budgeting to provide 1.5 FTE school resource officers. So the whole next section is all of our um property or our supplies and materials and you'll see other than software because we're always looking at that and again e textbooks um are in the textbook line but other some other curriculum materials may be recorded here. Um but other than that we are keeping it flat and keeping our fingers crossed >> and some of that it's partly because our enrollment is going down. So the as uh director Hman said before with the less kids our consumable potentially will not be as
087much. We want to keep it flat as costs are still rising with that. Um but again we're trying to balance both of those builds as we move forward. Computer hardware we are >> and we're below where we would normally be too. So that seems very conservative. >> Yes. >> Yeah. >> Computer hardware. We've been pretty fortunate. Uh we try to keep that couple hundred,000 placeholder to replace uh Chromebooks to replace desktop laptops. Um >> we're get running running low on luck on those. I think we have a lot of desktops. We are a lot of desktops that we're going to have to shift and we're doing some of that this year and some of it next year. So that will and that's that's a constant right when you're having when you're working with computers after
088a while you have to update they again I don't like to change things but after nine years I had to I didn't have a choice right really you run out of and you have to make so we do have that with a fair amount of our guest stops that we're having to work through this year and next year >> no support for >> well we get support I mean upgrades and those will happen But outside of that, you're right. >> Once they once they quit supporting them. >> Yeah, that's the hard part. >> So, those are all purchased though. We don't lease that. >> Correct. Yeah, we don't we not >> uh the equipment line item 540 uh is zero. That would be more of like a capital purchase of equipment. Um that would be
089a heat HVAC unit or something like that. >> Right now that's zero. And then the other big uh sort of more significant line 650 is our insurance. Uh we property insurance has not increased as significantly this year but uh our liability insurance has. So we get our insurance at school district through the consortium the pool known as um uh property and casualty in education. So it is every district in the state except like two and like Portland's self-insured maybe Salem or Crush. Everybody else is in this pool. The uh number of sexual abuse and misconduct claims is rising around the state. Those claims can be very expensive. Our insurance pool covers districts in the event that those things um happen. They they have legal um representation for us and things like that. That insurance has
090climax. So right now uh we we submitted information to to get our insurance and we'll be getting our actual quote back here probably right. So that may change a little bit. This is >> but but you're talking double figure percentage increases and we don't see that declining anytime soon. >> That's why it's up. >> Yeah. Uh the transfer to other funds. We mentioned the bus leases in line 710. The bus lease amount is declining slightly, but um it looks like we will be transferring we will be transferring money to subsidized food service this current year. Uh which we had set aside some for. Uh but based on food costs and labor costs going this way and revenue uh declining, we actually are projecting to transfer over $300,000 out of the general fund next year to
091keep in the food service fun. And I'm preparing an analysis. We'll go over next meeting with you to show because we've got the question uh even in this question and answer about what happens when we used to have paid lunch. Right now we have no student pays for breakfast or lunch. Um so I' I've got that information. And I'll be preparing that she as well showing we used to get about $100,000 from paid lunches, but we also had extra costs because we had to collect it, track it, take it to the bank, and um follow up with folks who didn't pay. Um but uh because of the community eligibility provision, our federal funding has gone up by over 300,000. So it's more than offset the revenue and we have been able to cut back on
092staffing hours that it used to take to manage the cash payment part. But again, expenses of food are >> I should know. >> You all know probably in different ways, right? It's just it's very expensive right now. >> So that's part of the reason we're having to put that contingency in a little bit in that transfer because we expect that that will continue at this point. >> And they do we they cannot operate in the red. They have they have to operate in the black and it has to be separate. And then operating contingency we have a board policy that requires us to set aside 7% of our operating revenue. Uh we have had other contingencies in the past. Um luckily if we didn't spend them they just roll over and become beginning fund balance
093or networking capital the next year. Um and this year in order to balance budget there are no additional set aides for emergencies like that. And that's where you see the operating expense in this budget. The subtotal reserves has increased 2.56 over last year's budget but our revenue has only increased. Well, thank you. >> That's a lot of information. Um, we got some time for some questions that you have questions on the budget. Um, I know I've got at least one, >> but anybody else can jump in here? No. in a whole lot. So, the one question I had if I can't remember if it was last year or two years ago, we had extra I think I don't know how they're classified attorney fees or like litigation stuff. What line item is that in because
094it looked like I'm looking at the right one it went down. >> That is the 380s. So on the expense side, the 380s non-instructional professional technical services includes our auditors, attorneys, um our insurance broker, um a few other smaller expenses, but that is the significant expense >> we that we it's flat. I mean, again, >> I'd love to say that that can eb and flow. Um, but I think we have done some good work this year. And so, um, again, you're always going to I'd love to say there's never going to be attorneys fees, but that's just not our world. And again, same thing with the audit. I think we will continue to do an audit. We are required to do an audit every year. That's an important part of, you know, us showing that
095we're fiscally responsible. Um, but we don't see that at least we're going flat from from obviously with what we found this past year. >> That was my question. Thank you. >> Sure. >> You you change audit auditors periodically. >> Um, we have not done an RFP for an auditor for a while. The last time we did one, two years ago, >> three firms applied and only two of them would have been qualified to conduct our audit there. The lack of auditors statewide who will take on school districts um has meant that if a school district doesn't submit their audit by January of the following year, they don't get their state school fund by law. The first year we went with this firm, we didn't get it until March. The second year we got it on
096time. This year we got it on time. But at one point there were over 40 districts in the state who didn't have their audits complete because they're just aren't enough auditors who are willing to do school districts. >> Follow the point of fresh set of eyes. I think they're all good, but it's amazing what when you change auditors, >> what they see that the other person that the other company missed and they could come back for two years and find things. I just I never thought more than three years for one audit company. That's what >> our um our last audit firm actually um I think they they looked at they were much more thorough actually than these folks, but they fired us. They said, "We're not doing school districts anymore." >> So, >> yeah,
097it's it's very different from state to state. As an example, the state that I came from prior to this was Washington. We actually had >> through the legislature state auditors that came to district. So, that was a automatic that is not this state. The state you have to go get your get your auditor go through the RFP process uh to do that uh from that perspective. So it is it is very different um approaches from state to state how how auditors and what that looks like within a school district. >> And last year we actually the when we did it this last time because our auditors fired us um fired all their school district. >> It's not just us everyone. They also they also um well we went in with the Wamid SD and three
098other districts and like I said three auditors were willing to provide us with an RFP. Three of the districts that the ESD represented no auditors were interested in doing their so and there was a new firm recently that formed. I just got an email so I am checking around and talking to the ESV to see if we want to go out again. >> Thank you. >> No other questions that I see you have there. >> So the the difference it's a negative as far as what needs to be made up. Mhm. >> So are you going to propose some stuff for what kind of considering or just >> So all the cuts, all the resations, all the retirements, all the layoffs that we've done. Um there I I will be want to be clear when
099they're tied to the grants. There's potentially going to be more that we're going to bring with you um tied to reductions in pro programs potentially. Um we're working through that right now. Again, I want to be clear about that. We're trying to stay away from academic core programs, but there are other programs that we do outside of that. And so, I think that's going to be part of our conversation in the June 1st meeting um with all of you. So, again, this general fund has been mostly the cuts of uh the handful of layoffs that we've had as well as the attrition of resignations and retirements that we are not filling. and and this this is balanced. The revenue equals the expenses. Um the reason that the expenses that percentage is higher is because that's
100only the operating revenue and operating expenses. The difference is made up in the contingency and the beginning fund balance. So those are kind of working capital sections. Um and because they are the contingency that we have to budget for on the expense side is lower. Um and the revenue uh hopefully if our end fund balance this year works out for the next six weeks the way I project we've got a little bit more on the bottom. But the operating uh is definitely out of balance. a trend that would be worrisome. If our revenue only continues to increase at less than 1%, there's no way we can keep costs at 3%. And there's lots of moving parts. There's again not sort of tied to this, but not um we we have 171 instructional days. Um there's
101a new executive order that's out. We are above the state average in many many areas. hide to hours. Um so even if we wanted to for example shift the day, we can't anymore. So um I think things that we have been thinking about just to because again whether um the governor that put this in front of us, right, we do need professional learning time with our staff. You cannot educate kids without giving your staff professional learning. Um and so we were trying to balance some of that out that right now is no longer an option. Um so there's some things that just over the last couple weeks we're having to change our thinking because we can't do things anymore. So that's that's just difficult as you're going through negotiations and trying to potentially find more
102time so we can continue to have really strong teachers in front of our our students and all of our staff, right? because there's lots of different things that we're doing from a professional learning perspective. But right now, our hands are sort of tied >> from a from a flexibility standpoint. We we are legal and no matter which law you put it in, whether it's the previous state law that ours or the current governor's executive order, we are fine in both avenues. The hard part is we cannot shift anything >> which is frustrating. >> A lot of districts do to balance and correct So >> and negotiations. So those salary and benefit line items sub >> potentially after we adopt the budget. >> So I think the last agenda item is roles and next steps. >>
103Yeah, that didn't change from last time. Just a reminder, um the budget committee will approve at the next June meeting a total budget and our tax rate, our permanent tax rate and the total tax levy for bonds. Um and then the board will adopt the budget and appropriate the spending categories. And >> your options next time would be to approve it as proposed, increase the appropriation, saying we think we're not counting all the money that could be coming in or we're being too conservative. Um, or decrease the total appropriation by saying think we're being spent. Um, and then after approval, we then go again to the board. And after adoption, we'll be keeping you all informed about changes. We'll be meeting if we need to to catch up on how things. Uh, just in conclusion,
104same thing we mentioned last time, we we got our priorities. um this has been a process and um you know we had a a follow-up question um through the Q&A about the staffing when we talked about resignations and retirements and not filling them. Uh a follow-up question. For example, one particular uh teacher at the high school we retired and we are not replacing that teacher in their discipline. So the question was well that impacts students. We have less offerings in that department because we are not adding that teaching position to that. Um, and I the answer is even though our goal is core instruction, there are going to be impacts. We only have86% more revenue in the general fund. Everything we do is going to impact students >> negatively. There's just no way around that.
105But the principles are the ones who are deciding how how we're going to manage that, right? And and again remember enrollment down >> means right you're having like we're we're adjusting FTE as it relates to class size right so that's how this is that's how this is working specifically uh from that that perspective I think we have a really good protocol that we've had in place um we are trying to keep our class sizes within those limits but that's not always where we can so we have a watch list or a concern list that we're working with princip on and again they what they projected and what they their enrollment is is actually higher than where we are right now. So again there's a little bit of flexibility within our FTE even though there are
106resignations and retirements that we are have collapsed. Again, there's still going to be core classes for kids to have, right? All of those conversations are happening uh with with building principles and um you know, again, it just instead of two sections because of how many kids we have, it may be one or you know, two or three sections, it may be one or two because of the amount of class size that we have within each of our classes that roll up. Because as we're rolling up, everybody's getting smaller. That make sense? because our enrollment kids coming in kindergarten all that rolls up and our big classes are starting to roll out when we're getting more at the again high schools 200 220 we used to be 256 240 you know those types of things that
107we're seeing >> graduate 240 your incoming freshman was a class of >> 200 215 that that makes a big difference So, other questions, keep on coming. We'll uh we'll be sending out information and we said next time this these numbers may look slightly different. We're still still have some moving pieces. Um and then uh the grants will be presented to you as well and asking you for that sort of total uh budget number to approve and forward on to the board. And there uh there is a state revenue forecast coming out Wednesday. Uh don't anticipate gigantic changes. Nothing. I mean it would >> we haven't heard anything so that's a good thing. >> It would have to be pretty dire. we would have probably heard that. So your next meeting June 1st and then a
108meeting on June 22nd is when the we will have a public hearing and the board will adopt the budget so that uh and appropriate so we can start spending it to >> Well, thank you everyone for your time. Sorry we didn't work a break in there. I know that's always kind of hard, >> but uh anyway, thank you for your time and we'll see you all on June the 1 and recess. Um, starting