2026-27 CSD Budget Meeting

001Um and we will start with a flag salute. >> I aliance to the flag of the United States of America and to the republic one nation indivisible and justice. >> All right. Well, thank you. I will turn it over to you and you can miss it. >> Uh so welcome to the budget committee for leading into the 26 27 uh school year. Uh let's just quickly around the room if you don't mind just your name again if you know what zone you're in uh how long you have been on the budget committee or this is your first year board member same thing for board members that perspective. So, Jen Kabista, superintendent of Central School District. This is my ninth year. >> Uh, Pete Swan, the presiding officer of the budget committee. Um, I've been on

002the budget committee five years maybe. Um, and I'm in zone seven. >> I'm Susan Graham. I'm vice chair of the school board. I wish I knew that there would be math required today because I'm not sure. Maybe four, three or four years. >> I'm not sure. Around there on budget committee. >> Hi everybody. Antonio Martinez, zone five. This is my second year on the budget committee. >> I'm And I'm zone two and I think this is my third year on the budget committee. >> Royal Johnson. I'm in zone three and I've been on it three years. >> I'm Nicole Walker Sunny. I'm representing zone 6 and this is my second year in the budget committee. >> Jake Bolatin um second year zone four even though I think I live in zone two. So >> I'm

003Jan Jo and I'm a board member and I have been uh part of this committee for Seven years something like that. >> Uh Cat I am director of finance operation my team here with the central school district and Shannon >> Shannon B um hope you can hear me zone one I think this is my third year. All right. Thank you everyone. >> Selecting of the presiding officer. >> Yeah. And we do a vote on this, right? You do. >> Yeah. So, I guess first of all, we'll take any nominations for this coming year's budget um committee chair. >> I would like to nominate Pet Swan as our chair >> and I would like to second. >> Do you accept your nomination? >> I do. Yeah. Do we have any others? It's a great position. It's

004a good learning opportunity. You'll learn your par parliamentary pro procedures. Uh Shannon, >> I'm not taking that. >> All right. So, I guess I'm the nominee. Um but let's go ahead and do a vote anyway. All those in favor say raise your right hand and say I. >> I. All those opposed say nay. All right. I will I will serve as the chair again for this coming year. >> That's excellent news. Um all right. Uh we will start tonight and I first of all uh thank you Paula for getting materials out. hopefully had a chance to look at those over the weekend. So you'll see as per the agenda this evening um we will be looking at current year getting a sense of the environment that we are operating in as we develop the budget.

005Uh you will hear the budget message. We're going to talk in general about K12 finance and projections that we are using. Uh we do not have a budget for you again tonight. This is really setting the stage so that the next meeting you will get a full budget. Um lots of moving parts still at this point. Um and then take your questions. Thank you some folks who sent those in and we'll answer those plus others as they come up and create this FAQ which will be going an ongoing documentary question answer. So, uh, pictures from read across America today. So, we had our fire chief and some other community members reading to kids, uh, in March. And that's the what we have here for you tonight. So, Ben Sty reading Dr. Seuss. That's again our

006agenda. I just want to do a brief uh overview of School of Finance 101 since you were all here last year. Um I won't spend a ton of time on this, but just an opportunity to review that sort of school finance uh is different than a lot of us who use accounting in our other parts of our lives because it is based on the premise of government fund accounting. So as revenue comes in there are sometimes it is very restricted in how we use it um and we have to track that very separately. There are different funds and we'll kind of continue to talk about groups of funds maybe specific funds and the the big daddy the general fund which is where most of our operation all most all of our operations are um accounted

007for. And just so everybody knows in your packet you have a to go side by side if if you do want this one makes it easier than will appear on the screen at times and then the slides with room for you to make notes as you just >> um yes >> and just a quick shout out to Paula the handouts look great so thank you so much good presentation So, uh, just this is a new piece and I'll let >> Yeah. So, on uh we the board does uh usually every month we do what's called a professional learning community. So, it's time where we spend learning again whether that be uh buildings coming in and sharing their data and what they're doing to move um academic goals, behavioral goals, those types of things. But there

008was also at times learning for us. So, uh, this past April, we just are making everybody aware we had an educational session, uh, talking about with the board of directors about a potential local option lending. Again, I want to be clear with the community, it it was an educational piece for the board to learn. Again, we're going to continue to have conversation. There was nothing really outside of the learning of what that looked like. again as we try and continue to look at other ways to uh provide stability in the district uh for resources and and things for students and our staff uh as we move forward. So, um we just wanted to put that in there, be transparent about that because it was um our last uh professional learning time that we had together

009that we reviewed that >> that really no way to fasttrack that to make that part of this budget. So, that's not something you'll be presented with this year. Um again we the just the sort of buckets of money the general fund our special revenue funds debt service uh capital funds are separate and then contingency and reserve funds the general fund is our it is also our most flexible which does allow us to adapt if we need to if as conditions change which we seem to be changing much with much greater frequency and greater volatility than we're typically see. Um, but also 87% of that is used for district salaries and taxes and benefits, right? That's our input. I worked in the hazelnut industry and you got hazelnuts and you put them through a process and

010they came out as hazelnuts in the shell or hazelnuts out of the shell. our our output is high achieving students and and community uh members and the only in the major input is teach people adults caring about them helping them succeed. So that's our expense. The general fund uh is the the finances the revenue uh our state school fund is the largest portion that is driven by enrollment that is based on enrollment. The overall pot of money is determined by the state legislature. We are in the second year going into the second year of a 2-year bienium. So our revenue is known as the state school fund revenue is known our piece of that pot will change. Right? So we have our first estimate of what that would be for the 26 27 fiscal year.

011Um and it will change several times throughout the year. And then local property taxes is the second largest piece of that general fund. Um so we're we're going to go through a few things about enrollment. Uh remember that is the primary factor. It is literally based on how many students we have out of the whole pot of students in the public K12 system in the state of Oregon. Um and that enrollment is down. We've all heard it. It's down nationwide. It's down statewide. It's down here. Um, our enrollment is declining at a faster rate than the state decline. So, um, statewide, even since 2223, K12 enrollment has declined 2.41% statewide out of the 560 something,000 K12 students. Um, ours has declined 7.46 46 over the same period. So as the pie is the pie the

012pie is the same. Our piece of it is getting smaller at a faster rate than maybe other districts >> and we're going to show you a little bit more detail of that as we go into the presentation. That's just a highle overview. We we'll get into more details of that once we get to the demographics. Uh right now our state uh per student aotment is around $11,000 per student base rate. So if you lose a hundred students over a couple of years, that's a $1.1 million hit to the general fund for the following fiscal year. State school funds and also other state grants. So we have a few state grants that are determined by this statement. That affects our high school success grant um which is only high school enrollment. It affects our um student

013investment account which is based again on enrollment and some other factors but basically that's it. So if our enrollment goes down those all take a hit. And of that $11,000 we get per student, there are students whose needs and supports are much higher. Um there is a special uh fund some special revenue for students that the cost of delivering an education to them is over 30,000. We're expected to spend the first 30,000 out of the general fund, out of this this just general pot of money and then we do get some reimbursement from us over that >> and we'll talk more about that more about that. >> So enrollment trends. So again, we just want to show you because again giving it to you just so you have two different views of this. So you

014can see the chart from 201819 all the way to where we are right now. Again, you're going to see this these uh demographics in a couple different ways. Let me show you here as we go through the presentation. This is just a quick snapshot of again you can see statewide um >> are the big bars >> and then you can see our enrollment again both both going down. >> Um but again you can see on the left side I want to just to explain the graph to everybody that's what looking at it for the blue statewide you're really looking at the numbers on the left side of the chart and then the central school district numbers you'd be looking at the right side of the chart. So our that line follows the right side where

015the the big statewide blue marks are following the left side. So again, you can see some of the trends are very similar. Again, the state had a little bit of an uptick last year. Um I'd say ours looks more we were more flat, but again, there was still loss of enrollment, and we continue to to see those those loss of enrollments again both in the state and at the district level. the the years that are missing, if you're eagle-eyed on the uh chart at the bottom, the during the pandemic, they did not count enrollment. Basically, we did not submit enrollment reports during the pandemic. So, districts were sort of held as if we had no changes while we were dealing with that. So, special revenue again, um this these are restricted. This is an entire

016separate group of funds that comes from different sources. Our student activity accounts, right? So fundraising that goes directly into our clubs into our activities and athletics. Uh those funds are separate. They are not melded in. They're they're student money to um direct towards specific activities. But we get some local grants. The Monmouth Independence Community Foundation gives um classroom enrichment grants to our teachers. Those monies are completely separate, right? They are restricted money that we account for separately. And then all of our state and federal grants also go into this special revenue bucket. Some federal examples, federal nutrition, the money that we get reimbursed for serving uh meals under uh nutrition program and our uh special money, federal monies covering students uh experiencing disabilities as well as the title grants. Title referring to a section of

017federal code basically. Um and many of those title one a is quite is a significant amount of money. The others are >> and then our state fund examples. Um you want to talk about >> Yeah. So really there's there's two pieces that that from a state ending that are large amounts of money for us. One is the student success act. Again this as a reminder to to both the budget committee and the community. is specifically from the corporate activity tax that was put in place several years ago and again it falls under we are required to some degree um to use it in these areas. So under health and safety, how do we increase instructional time again community engagement, reducing class size and well-rounded education. Um so again that's just one example of this the

018special revenue at the state level. On the next slide you can see this is again as cease referenced the high school success is specifically a state special revenue fund for high school success. Um but it's a carve out and we can talk further about that that becomes a piece. So here's the state school fund and they carve this out of it uh to give to high school. So it's it's technically not separate. It is part of that. Um and again it's because we are the size of our district we are required to meet all three of the uh criteria the dropout prevention college of opportunities and career and technical education. So because of the size of our grant the size of the school district there are restrictions of do I pick one or do I

019have to do all three. we have to do all three and spend money in in each of those areas. So again, those are I think it's important to know do the difference between the the state and the federal, but they're both big parts of of our budget as we work through this process. uh the debt service fund currently that uh we are paying on two general obligation bonds that was money approved by the taxpayers and um pay for specific priority projects. In this case, we didn't do projects in 2013 and 2015. What we did in 2013 and 15 is refinanced older bonds, the construction of Ash Creek and some other older bonds. And by re refinancing, just like you might be familiar with refinancing your home, we got a lower interest rate, better terms. Um,

020and so we are paying off those uh bonds and we'll talk a little bit more about that. But the debt service category, we also lease school buses. So those are in a separate fund uh to be able to try to pass that. And then we have one currently uh capital improvement fund that is the revenues are from our construction excise tax um also prior sale of district surplus properties and last year uh we used a significant portion of that to do all the amazing improvements that happened at the high school track and that's her field trying to rebuild that fund as we go. You'll see some information when we get into budget. Uh but with sort of slowdowns, should we call them um in instruction in our community that pots not refilling very it's not

021refilling hardly at all. >> Um and then last contingency and reserve funds. Uh this can be in not only the general fund but in a variety of funds. We may have money that we are setting aside for future items and uh as a budget committee you you will know about those as a board they will appropriate those and set aside. We have a board policy that requires us to keep some money un budgeted, unspent um in case we have an emergency and in the past typic uh where the state suddenly said, "Oh, you're not going to get your state school fund payment this month." And if that was we were counting on that income to pay our staff, uh that would be an issue. But um or for some reason there were delays in other

022kinds of reimbursement. We had that sort of those contingency and reserve funds. We know we don't spend except >> and we did have some of those delays this past year, didn't we? >> Uh we have had delay last year. We two years ago we did for example yeah we didn't our audit wasn't submitted by our auditors on time and we missed getting state payments if we hadn't known we had money set aside as a contingency even though they eventually made it all up that that got us through. Yeah, >> the sorry the policy a percentage of the overall budget and it's currently seven of the operating general budget agenda. >> Y >> All right. So that's the overview and I'll just dive right into our current situation. Uh so in your handout where you have

023the agenda. Oh >> we're going to talk about this in a little bit. This is the the floor analytics. >> Yeah. Page uh two is will will come up. So first of all we're going to go to page three which is our um general fund and we start off with our revenue. So this report which you've you've seen before all of you I'm happy to say as budget committee members and the board sees regularly um historical actual revenues our current fiscal year through March 31st. So on the far right column we would be 75% or 34 of the way through our fiscal year which ends on June 30th. and we kind of measure where we are against the percentages shown. And then I'll talk I will always talk to you about variances why it's more

024than or less than the percentage that we anticipate. Right now we are at 98% of our general fund property taxes. Does that mean we have a whole bunch more to come in uh April, May, and June? No. Because people pay their property taxes in November. We appreciate those who pay them 100% November because then we get 100% of our share of that in November. The state school fund, we only receive those payments July through May. So we don't get a state school fund payment in June. So we want to be a little more than 75% on the state school fund line. Uh which is in the third section. It's the first line and the third section are 3101. So you'll see we're at almost 84%. In July we get a double payment. So that's why

025in June they spent June balancing, reconciling. Um so they don't make a regular payment in June but then in July we get an actual buck. Also in May we receive adjustments to last year's state revenue. Uh we they have calculated that for us that came in at a loss of $156,100. So they rebalanced the pie. They redistribute 24.25 and say they overpaid us by 156,100 that would be deducted from our May um state school buff. And I'm gonna stop for a minute because one of the things that cease and I I know I've said this to the committee before but I think it's to share is that we talk about enrollment a lot and there are times throughout the year that we can again depending where our enrollment trends are. Cease and I will look

026and go okay we're a month or two months out of our next state school fund um really aotment into the school district. Do we need to adjust our enrollment? Because again, if we don't adjust to what we're seeing and let's say again, I'm making this up, our enrollment decreases 10% and then we get that you're talking potentially we could take large hits of 400,000 600,000. So this those types of things we are monitoring as we go through this. So again 156 we thought we adjusted appropriately. We do have those every once in a while. Um but um we this past couple years has been harder to do um enrollment just because of some of the fluidity that we're seeing in and out. Um and then obviously the dropping that's that's taken place. So um I

027I think it's really important to understand that as we talk about enrollment and the impacts that is having on our budget. Thanks S. >> Yeah. Um there is another grant that's given a separate calculation in the general fund called our highcost disability. Same thing. They pay us in 24 25 they give us an amount based on our projections and then in 2526 right this minute they go back and look and go oh you over projected you underp projected or everyone else in the state overp projected or under projected and the fixed pie the fixed pot of money has to go further has to go to more people in this case, our adjustment for 2425 was a positive $152,600. So, the they offset each other pretty nicely. I am okay with them taking $3,500 net out

028of our bank payment, but we will be fine. >> Yeah. >> And that's the goal, right? that when we're working through these estimates and having to make decisions again cease and I are trying to stay within like no more than 2% and we usually do a good job because we know that there's a lot of different competing things enrollment we don't know again at times the costs of some of our students and where that plays into this and so um again I think we we continue to work hard and and getting the cleanest numbers of what of the information that we know to make sure that we adjust so we're not having to do at times where the state school fund now is saying, "Oh, we're pulling back so much." Again, we're going to talk

029about where we are financially because of the enrollment decrease, but this then doesn't have to play as part of it. Yeah. >> Um and some I remind superintendent, you need to be paying attention to this all the time of where your enrollment and how it's moving because it does affect your state school fund. But >> and there are some pretty sad stories where people did not take this into account and the payment they're getting the first week of May is going to cause some cash flow issues. >> Yeah. >> Quick question on the >> high cost disability. Is that based on a headcount in that in that program or >> it's based on a headcount plus actual cost? We actually infer a little bit more information about that. Perfect. Little bit more to come. >>

030And if we need to pull up director Harmon, we sure will who does a great job of capturing this. >> So on your expense sites, so if you look at page four and five, which nicely I create. Uh so these same look the same picture of our expenses. >> And again um prior year uh information for your historical knowledge. And then the purple column is the current year we are in the midst of and where we are percentage which again for most expenses uh we want that to be at about 75%. And here's a few of the uh variances I can bring to your attention. We continue to have personnel savings. So um in the past those were mostly due to vacancies. We couldn't hire people. Um but this year uh last couple years we

031have a new wrinkle and that is folks who are um taking family leave and medical leave can apply for statef funded paid family leave that actually reduces or can reduce the overall amount we're paid. Right? We have to hire subs to offset that. So on line in the third section line 310 that includes those sub costs those are not our employees they are uh from an agency so that's kind of offset. So, you will see that hopefully we're we're accounting for the fact that even though we have uh hired for subs because we have folks using their protected leave and being able to take care of families in a way that we couldn't afford to pay them to do uh through the state program that we're offsetting that the some of their uh salary and

032and personnel cost line items. So, uh, last year we talked, I think quite a bit about how we were having to actually even use specialized temp agencies to fill some of our vacancies, and that has basically dropped off dramatically. We still have our regular substitute pool, but um, we have been able to fill some of those very, very challenging positions that we have not been able to fill in prior years. So that's great news. We'd rather have our employees or there are folks in our community uh doing this work and sticks. >> So the other >> I had a question. Yeah. Okay. So line or actually the >> um account is what 310. >> Okay. So 310 is 100 166.66% over budget or eight winning over budget right now. >> Right. >> Okay. and and

033that is generally offset by lines the first few lines well all of section one and all of section two because we have to hire substitutes because we have less personnel cost. So so that's right now at that point we were just about $500,000 over budget but we are five uh million dollars under budget. Well, not really because we're that one's about right. So, three four wanted me to get three and four and I didn't do math, but >> we have the savings in the section. So, the other big line item is line 320, which is property services. Um, that is repair maintenance, but it is also our utilities. So, as you can imagine with the buildings that we have, we uh rising utility costs are affecting us like they are all of us in our

034homes. Um, but we are right on budget. Basically, we're just a little bit off from the 75% in that line item. >> And again, it's been a warm I want to be honest, it's been an odd winter, right? So, again, I think that we've not that that's a you know, again, that plays into some of those. I think costs are still going up regardless. >> Um, we we did have a mild winter, so that was that helped in that budget line item a bit, even though we costs are still going up. >> Well, everything's gone up in services, so it makes no difference. You bet. >> Yeah. Uh the fourth section, the 400 supplies and materials um that is less than 4% of our total operating budget, right? The entire section um and that category

035is under budget. Now, uh, one of our line items is computer software, and that's quite a bit under budget, but we have annual software licenses. They're mostly renewing June. So, we got some more chunks coming in and they won't come until >> Yep. >> So, we want to be under budget. >> And I had a question because we haven't paid for the math curriculum yet. Is that why textbooks is only 20,000 and we budgeted 135? >> Correct. >> Okay. >> We paid for some of the math and we pay for some of it this year out of title. >> I thought there was some >> Okay. Supplemental title. >> Supplemental out of the title. >> So, we got them. It's just we didn't have to pay for it out of general fund because we had

036other funds. Is that >> We'll check on that to make sure. I want to confirm that because it could be out of >> um I think one of the things that we're that we're working through with curriculum is the old days of textbooks is not reality and so at times um some of those again you fall into that computer software computer hardware because >> um but again so that's some of the things when you're talking about that because that is more lensure than a textbook and so we'll we'll check on that to make sure um and come back to with with that as a just so you know where the math curriculum is going to be. >> Um the other line item it looks like we have a bunch of savings is actually on the

037top of page five. So the second part of this expense 710 other transfers and it looks like we're way under spent on a $267,000 item. um that is money that we receive in the general fund but we transfer out for other purposes. So uh big transfers there are we we receive some reimbursement from the state for transportation expenses. Some of that is depreciation on those lease buses and we have to put that back into the bus leases fund. So there's a transfer there. Um and we we will do that at the end of the year after we pay all the buses. Um we do have money this year uh every every year for the last few years we have budget of money to transfer to nutrition service. Our nutrition services our school lunch money has

038to be treated like an enterprise fund. It has to make money. It can't go in the hole. Right? So if we are not having getting enough revenue, we can't find enough savings with food costs rising as we all know. Um we have to transfer money out of the general fund to cover that. That is federal law. So we have some money set aside for that in my time. there. You better have not had to transfer this year. >> I have um So, are you talking about like um account 811? >> Uh 710 just above that. Sorry. >> Just just the one above. >> So 811 those are those contingents. So, those are money that we had set aside in case we need to use it at some point this year. If we don't use it,

039it basically rolls over as part of all of our net revenue. The any revenue we get minus any expenses plus whatever we don't use from that rolls into start next year's budget. Um I wanted to show you and again uh we look at this when we do the full budget. Another way to look at our budgeting is by program type. So what you just looked at is expense type. It's utilities and salaries and computers. Uh we also have to budget based on progress. what are we doing with this money? Um, the school district uh accounting term dysfunction. And on page six of your packet, I just showed you a a little bit of that to kind of show you how our spending has changed just over the last um if you look back to the

04022 23 school year and um look at where we are year to date and again um well this isn't spending year to date is what was budgeted. So it's not what's be been spent so far 256 but what was budgeted compared to those prior years that first uh section purpleish not on the screen but I know for packets um is general ed instruction and general ed activities athletics is part of that. So though that's a very uh that is the most significant part of our budget in the general fund but since 2223 actual expenditures our budget for the current year is only 1% more than that. Even though obviously salaries increased, benefit cost, payroll taxes, all of that's increased, but we have moved some of those expenses into other funds and or made cuts to

041those programs, those sort of general ed expenses that are included. Uh we have another grouping of those programs that are um called out as special populations and for the special populations section we actually get additional funding for that. So even though those costs have increased 8.6% over the period they we get a little extra funding for that that doesn't show. Okay. And then special education which we do get extra funding in it. We the high-cost disability we talked about but we also get some special weighted funding for that but those expenses have increased significantly. And again I think it's important to remind the budget committee and the community this is who we serve right this is who's in our community. um we serve the people that come to our schools and I think it's really

042important that when again we're going to talk demographics here in a minute and I'll talk a little bit more about that but I think it's really important that everybody understands who our student population is. Um and again we're going to talk a little bit more in detail of that but um it is an important part that our job is to service every student that comes through our doors right and that's a big part of what we are responsible for and we'll talk a little bit more about that in some of the things of the impacts that we're having. But um I think it's really important to to remember um who we serve in our community because that becomes a big part of this conversation as we budget. >> Yeah. And I'm going to point out

043because this might skew it a little bit, but there's a line there uh right about the middle of that green section 2148 behavior services. Uh those services aren't just for special education students, right? any any students who are experiencing um concerns and issues that make it more difficult for them to learn, we have specialists who assist them that uh we didn't have any of those budgeted or identified specifically in the 2223 general fund budget and now we have $400,000 dedicated to that. So some of that is special education, but >> I had a question. >> Sure. >> What's resource room? >> Julie, do you want to come up and there's a microphone here at the end. You don't have to come all the way to the front, but if Julie Hman, our executive director of

044teaching and learning, can talk a little bit about the different SPEN programs. We have the extra mic right there. So, yeah, you can sit there. >> Sit there. >> Sit. >> Just high level Jules. >> Yeah. The difference between structured intensive and resource. Um, so the our special education program, so we have a variety in the district. When we look at coding, the resource room or the 1250 code, um, our students that are typically accessing the general education setting, um, for most of their day and they go into a special education classroom for specially designed instruction or services. Um, and so that is to code students that are generally accessing in general education um, settings. The 1220 is our students who require a higher level of programming um in the special education classroom. They may

045be in general education for a good portion of their day but are they demonstrate pretty high needs either uh academically, adaptively, physically, cognitively um have more intensive needs and so there are in the 1220 codes. resources um that they would see students in general education for most of their day. >> So it's not it's not a a room in each school only for that. So there is actually there are resource rooms. >> Okay. >> Question. There are resource rooms. Um but not all students that may receive services under that code are going to that room but the people working in that room are the ones supporting them maybe in the general education classroom. >> Thank you. >> Yeah. >> Thanks. >> Good question. Yep. So that is just one another way to dissect and when

046you get your budget book it will have all of the den funds uh broken. Uh again, as we uh see changes in our funding, as we see rising expenses, as we experience volatility, um I did um want to start really focusing on our cash on hand. Um I think when life introduced this at the December budget meeting uh that that he came to and mentioned this has been a problem like some of our fellow districts have found themselves in a in some concerning situations. So I have started to track this uh your packet has uh two actually uh recent two different representations of that. The first one um is our like current year as of March 30th. So it shows you our current cash on hand and where those what funds those are divided amount.

047So obviously most of our cash is in the general fund. Um our food service and all of our federal and state grants are on a reimbursement basis. So we spend the money and then we submit it to the state. They manage our federal money for us as well. We submit that to the state and get reimbursed in the following. So that will always be a negative and I have to account for that if we were ever on the edge. I'd want to remember that those reimbursements do not come until the following month. um our student activity funds school cool schools is a special pot of money for energy efficiency projects only at Independence Elementary and none of the projects we want to do there qualify. So we get money and we have to find a

048project fit uh debt service and a capital project that's as of March 30. Um, and then the following sheet, and I just kind of have a summary slide here, the following sheet, you get a sense of this really crazy roller coaster we go on with tech. Um so if you look even just at the current year and you see that uh now if we have 13,000 13 million on hand um and in July we only had $6.9 million. Well again we got all of our property tax money in November. So we're working that down. We don't get another big chunk of that and we don't get a stage steel fund payment in July or in June. So you'll see in prior years if you look at June the difference between May and June >> can

049be quite dramatic. The exception to that um would be in 2223 and if you look at the footnote we had been putting money away for 20 years 15 years 15 years uh to pay off a balloon payment on a loan. And once that got paid off, that hit our cash, $2 million. Um, and then another big drop uh when we paid for the turf project last year. So those those kind of inflated numbers over prior years, but um you can still see that there is kind of a significant change between even as far in the 22 23 on back that in in June we're spending down money. we've already got we're not getting more revenue. So our beginning fund balance um over the past few years and this is all funds all together um is

050something we now have to watch more carefully and we were sitting on a lot of cash so we could kind of uh have that cushion and remember some of that cash was because of the recovery from COVID right and so there's I just remind the community right we had a a big influx of both more federal a mix of federal and state money that can and cannot be. So I think I we I mean I know we all remember that. I think just for community members that may be listening to this for the first time I I think some of those pieces are like wow what a big jump for a couple of years. Well yeah that was additional funding that was coming to school across the country uh not only here in Oregon. So

051at the point the last one. >> Yes. >> What is um BOC? >> Thanks. Sorry about that. I just should spell that out. Um we have um so our our staff, most of our staff is paid on a September through August basis, but our fiscal year is on a July to June basis. So there if if you start as a teacher in our district in September, you are paid for your your pay for the year is divided into 12ths and you get paid once a month. And if you leave in June, we still owe you for the full year because you work the full year and we but we have to pay you out when you leave or retire. Happens a lot with retirements. So we had some significant payments for that in 2014. >>

052What does that stand for? >> Balance of contract. Okay. >> What is what does it stand? >> Balance of contract. they they have a contracted amount they are owed, >> right? >> Um and it's just divided out for payment purposes over 12 months. So, we have to pay them that balance. >> Yep. Good question. >> All right. That takes us to 2627. >> So I again at this time I'm going to read and we'll this will be up and and shared with the community, but we do put together a budget message. So I am going to read it as I do every year. So um bear with me and Steve CE has some slides uh that go with some of it. So, um, here we go because I I think it's important of of all

053the things that we're working through right now with the community. So, dear Central School District community, as we prepare for the 2627 school year, we start with a key factor, enrollment. Enrollment is a primary factor that determines how much funding we receive from the state each year. We know that funding is one of the key functions to growing student success. From paying educators to paying the electrical bill and other utilities, including garbage, water, and internet, money keeps education going. Enrollment is down across the state. Central School District is declining at a higher rate than the state average, sitting at 2881 as of April 24th. We will continue to review, align, and develop systems, practices, and programming to support the learning and growth of every student in our educational learning environments. Central School District 13J strategic

054plan, which includes our long-term goals and outcomes, is our north star as we build an inclusive culture of belonging and learning for the success of the whole child, whole educator, and whole community. The board and staff of Central School District remain focused on the four pillars of our strategic plan, which is student growth and achievement, family involvement, community partnership, and staff leadership and continuous improvement. Factors in the coming school year and beyond. Central School District is currently in bargaining with both Central Education Association, you'll hear us reference them as CA, and the Oregon School Employee Association, OEA number 124. We will also have updated agreements with administrative and confidential supervisory groups for the 2627 school year. Federal funding grants are expected to be flat from the 2526 school year. This is considered a cut and

055will impact our program. The needs of our special education students continue to increase, specifically our high-cost disabilities when it costs 30,000 or more to educate a student. The state provides again roughly 11,000 per student in the state school fund. However, our reimbursement rates for our students with highcost disability needs are 25 cents per the dollar >> and that has gone down dramatically. As we've shared with you all in the past, the most recent state school fund estimates the district for the 2627 fiscal year is a mere 1.37 percentage increase which the district which the district considers as a decrease. This is a reflection of the multi-year trend of enrollment decline. The 2627 school year will also embark on a legislative session focused on the 2729 bianium where there is much concern about the state's overall

056revenue and federal funding impacts over the next two years. Things we're proud of. One of our key initiatives this year is regular attendance. Every day that students attend increases their ability to take advantage of the learning environment and builds habits and resilience resilience necessary for life after graduation. Attendance matters in central school district. Even with tighter budgets, we are able to provide each school with continued support through mental health counselors and nurses. In and out of school suspensions have dropped this year K12. Our stu students continue to maintain reading skills through the summer months K5 and we're seeing growth in sixth grade reading and eighth grade reading and math. Culture and climate experience surveys for our staff, families, and students continue to reflect our efforts. Last year's survey feedback led to the development of a

057district-wide student code of conduct to create greater consistency between all of our buildings when it comes to interventions and consequences. Unique learning experiences for students include our two-way immersion programming, participation in the WAMIC career academy, and career and technical education pathways. At the request of the group of community members, the board allocated funding from the capital improvement funds to make needed improvements to the Panther Stadium's turf and track. Priorities for the district as we move forward. We will continue to focus on the importance of regular attendance. The district will continue to invest in our students which includes up updating necessary curriculum. Right now, we're looking and there's curriculum adoptions in in process for health science and social sciences. The district was awarded two -ate federal grants to update our technology infrastructure. Construction is underway around

058schools and in the community with expected completion in the June in June 2026. We continue to support the needs of special education and all students which includes our special education staff. And then the district has applied for the three-year summer school grant and we are waiting to hear from the Oregon Department of Education if we have been awarded. Some of the challenges that we have as a district moving forward again we are losing that and the district continues to lose enrollment based on our enrollment forecast. There is concern this trend may continue for the next two to three years. And we're going to talk a little bit more about that here in a little bit. Because enrollment continues to decrease in January of 2026, the district be began a hiring freeze excluding legally required positions

059for compliance. We are working with building department and union leadership as we identify the staff who may be impacted due to forecasted cuts. We will continue to carefully consider all purchases when general funds are needed. We know that we will need supplies for classrooms and events, but encourage savings whenever possible. We do not know how federal funds will impact the state of Oregon. Cuts to Medicaid and SNAP could affect the state budget and school funding moving forward. And then, as we've shared before, insurance, including workers compensation, continues to increase. The school district's budget is a statement of both the value of the organization and that of the community. Along with the reminder of those values, please note the following requirements as set forth in OS chapter 294 that we explain the budget document, the financial

060policies, important aspects of the budget in connection with the policies, the reason for changes in appropriation and revenue, and no major changes in financial policy and accounting basis. There have been there has been no change in the district's accounting basis and no major changes to financial policies. This budget will reflect the goals of the district as outlined in the strategic plan with a clear understanding that the challenge of declining enrollment means less money to accomplish those goals. I'm confident that the board, students, staff, parents, and community of Central School District will continue to work together as we focus on student growth and achievement. I'm I remain appreciative of the work of this budget committee in consideration of our our efforts. Respectfully submitted, Jennifer Kabista, Superintendent So our shortfall again this is just a summary of

061what she mentioned rising cost we all feel that limited revenue and declining in that so those will be uh what you will see reflected when we present a budget too and uh a little bit more you mentioned demographics and one of the questions in the MAQ was about that. So we'll talk a little bit more about that. Go ahead. >> Yeah. So this first page is we've been uh using this this is a we call it a snapshot of our school district. So this is what we have been using with when we go out and have community chats or or with our staff and having conversations with them or any group that we present and this is one of the uh stats that we're putting in front of it. So a couple things you can

062see our enrollment was uh 2881. Just to give you an idea, about three months ago, we were at 2985. 29, excuse me, 29, excuse me, two 28 950. I apologize. I don't mean to jump too far too far ahead. So, we're just seeing enrollment continue to to decline. I think the other part in this presentation is right below that. Uh it's been really important to us as a school district that we make it clear of who we represent and who our students are. So again, we have 29% of our English learners. You'll hear us reference them as emergent bilingual because we think having an one or knowing one or two languages or even three. We had a young person that had three last year walking out of the high school. That is an important piece.

063Uh it's a superpower. We think that's a a really big thing in our our district. We have 16% of our students with disabilities. Again, that's increased. A couple years ago, we were only at 12, 13%. So, we continue to see that rise. Um, it shows 42% students experiencing poverty. That's a really big conversation right now across the state with superintendent. That's based off the census. And I'm just telling you that's low because I know in who we serve we have a very large um by based off of the census that's that's what the census says our poverty is. Um but again those of us that live here and and work we we know that we have a little bit more than 42%. Then again our three largest ethnicity groups 48% with our Hispanic Latino 4%

064with multi-racial and then 45% white. uh we speak our languages spoking spoken in the district are now 20. When I when I got here it was 14. So just give you an idea of how diverse our our community continues to um just continues to we're a diverse community in a rural in a rural setting. Uh on the on the right is just a snapsh snapshot of our staff and then on the left is again a breakdown of our skills. I think one of the other things we're highlighting this this year is we have what's called a transition program. Uh we are required by law to support students with disabilities all the way up from 18 to 21. So we have a classroom that's here in the district office that supports um those students um because

065again that's that is part of our priority and and we want to do that because um it is our job to make them prepared for for real world life. So again just a little bit of our demographics. I think this is an important piece just to pause and really make it clear who we serve within our community. Okay, so the next slide I think one of the things uh people keep asking us well why is why is enrollment going down? We don't understand. >> And this one is the one that is >> it's also in your hand packets a little larger so you can >> Yes. Can you talk about enrollment? Like is it like can you like define it a little bit more as like a student who's in the class every day or

066like and then what you means when do you stop counting a student like when they're not in school for 30 days? >> No. So good question. So couple couple things. One is if they're as long as they're enrolled they count for us. After 10 days, if you are not in our school, you are required by law to drop them. So, we will have at times students that will will drop. We could we try and reach out, make sure bring students back, but again, that's the first one I would say. We have the 10day drop rules having we refer it and our our um front office staff and our um key people that help us with the data, they're really looking at that from an attendance. And so, again, if you haven't attended for 10 days

067in a row, you are dropped from our um enrollment. you still count as a record for us which gets to graduation rates and dropout which we're not going to talk about but that's a little bit of that. The second piece is um we sign in and out students out of the district. So there is a transfer process whether you're going again family moves to Corvalis there's a high probability they're going to unenroll in central and then they're going to enroll in Corvalis. So, that's another way that enrollment would change um from a physical move. We also have uh enrollment changes where students are um either going in homeschool or they're going online or they're going to a private charter um just private school in general. One of the things when originally we did the flow

068analytics, they have an analysis that they did for us. So within our community, of all the 100% of students, about 80% of the students in our community come to public school. 20% do not. So I'll just put and that could be home school, online school, uh private school from that. So that's been consistent. That's that's dropped a little bit, right? The last couple years we've had about 76 to 78% of our full population based off of what Flow Analytics says um that are enrolling into um the school. But I will tell you I am the one that signs in and out enrollment and it is like this where we'll sign five out and we'll get five in. We'll sign 10 out and we'll get 10 in. So the schools get the in, I get the

069out. So I see who's who's going out and I get CE and I get enrollment numbers every two weeks. But I will say those are probably the three biggest areas that we do. We keep track of that too. So we know how many how many of our students that technically reside in central and could go to school here. How many are online? How many are in um homeschool? All of those pieces. We have that. How many are dropouts technically? Um, so all of that we keep, not only our enrollment, but where are our kids going? I will tell you that a couple years ago, I'm going to go back pre-COVID, um, we had about 300, um, students in homeschool. Now that mix is more online and a little bit of homeschool. So, but very similar

070numbers from that perspective. Good question. Did that answer the answer? Okay, thank you. >> Those are really the three key ways. >> Quick clarification on the 10 days. Is that 10 school days? and school days including uh delay >> work days or whatever. >> Yeah. Yeah. So any day that kids are in school. >> So if we have a uh I always say we have a professional day or a grade day for teachers that doesn't count. Okay. >> So it's only when we have instructional days at all instructional days and then staff days. >> So no go ahead. >> Okay. I I have one is that we have you know the enrollment. What is our attendance on the average? What's the percentage >> our attendance right now? And again, Royal, I I did >> I

071know it goes up and down, but >> yeah. So, we're probably at this point, and I haven't done the average. Um we're going to I'll have it for the board on Monday because because our we end um April this Thursday. Is that right? This Thursday. >> Yeah. >> Um but we're probably somewhere between 67 and 69%. Brad, you have my >> That's That's the percentage of students that are attend >> regular attenders >> 90% of the time. >> If you looked at the overall attendance, it's going to be closer 80s or 90s. >> Yeah. So that's a that's a piece that we have to take into consideration, right? So 80% of kids may come to school every day, but 69 67 69 right now percentage of them are 90% of the time in school. And

072that's again a big thing that we we pay attention to. >> I just wondered if it came up. That's all I was asking. Last year it was about the same and I just wonder. >> Yeah, we had a we were doing extremely well and then February hit and sickness ran through this school district. I'll be honest, there were a couple times I got phone calls from principals because we are required if we're 30% or more of our students are out sick, we have to report that to the health department, right? And we were teetering in a couple buildings. Yeah. Um, you know, a couple of the schools were at 28%. Again, we were making phone calls still to the health department just like, hey, are you >> is there anything we need to be aware

073of? But we took a pretty significant we took a little hit in January. We took a pretty significant hit in February. Um, good questions, Jim. >> We used to have district paid tutors for children who for various medical reasons were unable to attend school. How do those count in terms of the being in school all day? The funding for a a sick child >> doesn't really I mean I that is just the service that we do. Um, I think that's some of the I think as we move forward into the next fighting, there's going to be some advocacy in different ways that we have to think about. Um, because there is at times a tutor, a one-on-one with a student, you know, I'm going to say that a two-hour period is again in a school

074setting where six hours a day, but that's multiple kids in that setting. So, it can be I would say it's almost equitable or possibly more, but we don't get to count it that way. Well, I hope that we continue to do it because at least my years of working in the district was a remarkable service. >> Yeah. Or Yeah. We try and work with students that that some kids do need that. Yes. >> So, going go ahead. Sorry. Really quick. >> No, please. >> Kind of similar question, but I'm going to say different end of the spectrum. There is no way for any student to make up a day. There is no like structure. If a kid is pulled out for an amazing opportunity for a day or a couple days, they can't get work,

075turn in work, and make up those instructional hours. There's no function to do that >> that we get reimbursed for no way or keeping up in class, but not >> Yes, keeping up in class. Absolutely. >> Of course, but there's no credit given for the teacher for doing that extra work, for the student for doing that work, and for maintaining that. There isn't actually dollars to the district for any of that additional work done by parents, teachers, and students. That doesn't actually get >> count as a school day. No matter what, they're not here. >> Brian Fenner, who's our director of HR, you want to Why don't you come up so we can hear you, Brian? >> Just to be safe, just if you want to add something before I talk about flow analytics, >>

076just one point on the chronic. say they have a chronically ill student, >> it it doesn't mean that they're not counted, >> right? >> Um so we want to keep that in mind. So tutoring, we might be doing tutoring for a chronically ill student, but that doesn't mean that they're unenrolled, >> right? >> Um necessarily, >> right? So the uh a lot of times you you have somebody that's going to be out um on a fairly regular basis, but they're still receiving services. They're still enrolled with us. Uh so it's not every situation where somebody would be dropped from enrollment based on just an ADM. Um it depends on on what's going on for particular travel. Thanks B. So back to the flow analytics that we did um back when I first got here. Um

077so one of the things again we were we sort of projected out. You can see if you go to 2026, right? I'm gonna give you low at 2026 the bottom part of the chart on the high end they estimated us at 3058 on the medium 2941 and then on the low 2823. So I believe we're going to fall somewhere between again right now we're 28.81. We do sometimes see an uptick in the spring um mostly at the secondary levels. So we could see a little bit of an increase but again we have to look at the overall picture of that. But I just want you to look forward if you look at 2027 our low again possibly a high of 20 or medium of 2920 and then maybe a high of 3051. Now, I will

078tell you when you look at the the the document they gave us several years back, the birth rates have dramatically changed. So, I can tell you already from what we get birth rate wise and what they projected, it is off. And so, that is playing also into this because our families are not having as many children as they used to. Again, right, that's just part of the the pieces that we're having to work through. But again, I think it's really important that you look the next two years there could be continuous decline in enrollment. And I mean, just again, this is not something that we didn't, you know, we hoped, right? You always hope that you're up in the the 30 or 3,000, right? That's our goal. But again, the reality of of just, you

079know, community moving in and out, other things that are going on within the community, all of that plays into these numbers. These numbers have been really consistent. I think there's a misnomer in the community that well, we're not doing something. No, no, no. This is projected enrollment that we had concerns about and we have been trying one to keep us as whole as possible, but when we can't, then we're starting to do attrition, right? some of the things freezing positions not opening things because we need to save money as we move into the the next year. Um so again I think it's really important that um that you lay that if cease goes to the next slide. Well, and I think just one more thing about flow. Uh, and I I don't Emily, I don't

080know if this report is still on our website. It had been in the past, but they it's a it's 40 50 pages. They're they are demographers. Their specialty is taking a bunch of input data and creating this. They they some districts update this every three or four years. We've decided to kind of hold off. It's an expensive and extensive process >> and I would also say it's been on track >> so we haven't had I didn't we have not we've made decisions >> not to do it because they are tracking with what we expected to be tracking >> but their their inputs are um the state official population estimates for P county they are birth rates right so they take a birth rate and add five years and say that kid's going to be a

081kindergartener in five years and they start folding them in or subtracting them out. The report shows all of the potential housing developments in Monmouth and Independence. They speak to the cities and say, "Do you think, you know, you have your there's a new apartment complex out on Riddle Road and when will that come in and how many units?" Then they use information they have to project how many school age children would live in a development like that. How many houses are you at? So having all of our housing construction slow to a stop is how come we're not at the top end of this right all those changes are are go into hey if everything came online that's why we'd be higher those kinds of thing it's a very um interesting report to look at

082but the fact that we are well within a range they predicted could happen as volatile as our economy has been and things like that it's pretty interesting get the whole reports in the facilities >> everyone that is too. >> Yeah, because I read the whole report. >> Yeah, we get to the facilities report as well which is on the website. >> The one thing that I'm wondering since we're just talking about this part of the budget, not this year maybe to do something like this, but they seem to think we'll be turning the corner in 2028. And because all the numbers were the whole state, not just us, are worse than everyone thought they were going to be. It might be useful for budgeting purposes for us to know if this still looks like we're

083going to have an upturn at some point in the next couple years. >> I think that'd be a good discussion for the the >> while we think about you know >> I think the other thing with spend our money. >> Absolutely. Absolutely. I definitely think that's a good good thought. I think the other thing that I want to remind everybody and CE talks about because again if you drive down um is that 16 not 16 yeah 16th coming towards uh south there's a new housing area coming in I think it's really important to remind community and all of you just because we build a house doesn't mean that brings in children >> right because there is a little bit of hey there's a 20% increase in housing doesn't mean you're going to get a 20%

084increase in students right so there's not there is not a correlation with There is you hope, right? There's a there's a potential of that, but that doesn't always mean that's what's going to take place. >> Well, one one thing I can't realize the cost of a house is so much higher. Yes. >> That young people cannot buy and or if they do buy, they don't have a family because they can't afford to. I mean, you can build 90 homes, >> but if most of them are 50 years old that are buying it, there is no kids. I mean, that's the whole thing that the program I look at is the tremendous cost. Who is 25 years old and buy a house that that are going to be built out there for $600, $700,000? It's it's

085not there. And then then you wonder why there's no younger people. >> I think the prime example was the one behind Snar's that big apartment complex there. Everybody had moved in there or worked in Salem and no children. You got to know the bus goes there. Don't pick up two or three people in 70 units. 70 units that are two and three bedroom pick up five people. >> Yeah. >> So, it's cost. >> Yeah, I appreciate that. >> Yeah. And uh just one of their inputs being the state population forecast. The state divides up into sections and only does a like a pulp county every four years. We're divided into four sections. They just did ours last year. So they would be using those state numbers as a new basis. So within a year or

086two it'd still be valid. Those numbers would still be the official state projections. >> I have a question >> please. Um on this page yes okay um the last line it says um enrollment values include all students living within and outside the district. So that part of the population is we do have a percentage of students that are outside of the district >> that transfer that I think two ways. One they can transfer in if we have room and the second is if they let's say they move to Torvales but they want to stay in our school system because we already have them as projected part of our enrollment. We allow them to come back. So that would they're considered even though they've been with us now because they live in Corvalis, they have to

087get released and they're considered out of district. So >> it's a tiny number overall, but it's it's part of their calculation. >> Yeah. >> So as C go to I'm going to have C sort of flip back from this to the previous one because I think you can see just the trend is very similar. So if you look at this and ce is going to go to the next page very similar trends that you're seeing. So again um some of this is what we we had been projecting. Um so on this slide is both our >> and these next few are not in your packet. >> Yeah. So we just want to show these to you and then we'll we can share this PowerPoint with the budget committee. So this is just a snapshot of

088both our enrollment and ADM and I'll let C is talk about ADM because I think it's an important piece. But again, you can see just the trajectory of us continuing to to move down in both. You want to share a little bit about ADM? >> Sure. So, um, the measures are enrollment on October 1st. And again, that's everybody who's enrolled and we've had at the beginning of year, we assume, unless we hear otherwise, that every student who was there the year before is going to come. We have the month of September to find out if they're not coming. If they are coming, then that's why the state picks October 1st. So they we send in a number on October 1st, but one of the measurements that they use to start calculating our actual payments of

089the state school fund is our average daily membership as of January. So they count that official how many of your enrolled students actually were there over the number of days that you've had student contacted. And this shows in the past if you start out at the left in 201819 we would have an enrollment on October 1st but boy we were adding students right we were adding students. So often times our ADM would increase by January. And now not only is enrollment down, but having those students continue on, not be there for more than the 10 days, have all of their um actual um can stay enrolled has dropped dramatically between October and January. So that is another effect. Even if we start out the school year um starting in 22 23 you can see that

090by January we're we're losing them and we're sort of losing them at a faster rate. So we we we budget in now April, May, June, assuming how many students we're going to have in 2627. But even if they all show up in September, they don't stick around and that funding starts being whittleled away because our piece of the pie is growing at a shrinking at a faster rate than the overall number of students. So the next three slides are just couple more demographics. If you go to the next one, this is our overall enrollment with our students experiencing disabilities. So you can obviously see the the rise uh that we've seen over the last couple of years. Again, I think that's just a reminder of who we serve uh in our community. >> Yeah. And

091again, those come with some extra funding. But the key next one, and we showed you this last year, is what our high-cost disability grant is. So, I'm going to walk through the slide again. Far left is 2016. Far right is current year or last year, excuse me. You are correct. So, the blue is our actual cost. So, again, I believe it was about $5.9 million that we spent on our high-cost disability. I believe last year we were 3.2. I believe that's correct. >> Close. I think I'm close. Right. Um the orange is again those allowable costs that we get reimbured for. Correct? >> The the blue is the total cost of of educating the number of students. The line is the number and the allowable cost is the amount over 30,000 that we spent. So

092the first 30,000 we always pay for pay for and then the allowable is a difference between that 30 and what each student cost in supports. >> And then the yellow is the total reimbursement. And you can see how that is continues to dramatically drop. So when C showed you that sort of layout of why you know general education has only increased 1% and the others has increased 30 or whatever 40. This is part of it right. We're we're not getting reimbursed. You're you are going to hear uh myself and our team start to advocate especially as we get into the 2729 bianium the ability to fund this better right that we get reimbured they're supposed to be reimbursing us per dollar at least since I've been here the highest it's ever been is 56 cents

093so we this has to be adjusted in some form of fashion um and then the last slide before we just sort of get into the budget assumptions and as we talk about our next steps is just a quick snapshot of our emerging bilingual, our multilingual learners um that we have within within the district. So that's been pretty consistent over the last several years which which also can play into the formula. >> Okay. >> All right. >> Does anybody like to take a quick break? >> This part should go pretty fast. We've mostly set the stage for you where we see the assumptions that we're using. So >> that didn't see anybody that's desperately needing a break. So we'll we'll press on. >> All right. So um as we prepare budget to present to you the

094uh we mentioned that the state school fund estimate has uh as of March again these are us making projections about all of the inmates the number of students the number of stu special populations of students. I even have to tell make a guess right now what our property tax collection will be next year and what our property values all of those are projections right so based on that there is what the state thinks we will be getting that does reflect this multi-year trend of enrollment decline and this is the 1.3% increase over the amount we're receiving this year so if you want to give raises if we want to pay for increased utility cost. We only have a little bit more to do that. This budget will the district has outlined strategic plan. Um I

095have run a preliminary debt service levy amount and we'll get into that at the next budget. Uh that is projected to be $2.50 per thousand. 26 27 we will pay off the 2013 refunding bond. Um and then debt service for 28 and 29 will pay off the 2015 refund. Then as we've discussed before in 2030 we start paying on the deferred portion of the high school rebuttal fund. So that's where we'll be coming out with those numbers just to kind of keep you reminder of where those are. >> We we start in 30 on the deferred >> the fiscal year that has to be paid off in 2039, doesn't it? >> Yes, correct. >> So that increase will be a tremendous 30. >> It It's actually not as big as I mean it replaces the

096current bonus. >> That's right. Down a little bit more. Yeah, that uh last year, thanks to good input, our budget book actually included the in the debt service schedule. So, you kind of can see how much that goes up over the years and hopefully property values are going up. Hopefully, all these houses get built and that is spread across more um our uh we mentioned federal funding is flat. So we we'll k you over the heads with that. Uh we have our initial uh Oregon has received its allocation of the federal government that starts October 1st and goes through September 30th of the following year. Um and we will see how uh the state of Oregon handles other federal cuts and you know as they are starting the 2729 um bianium what that does because

097they if they have to cover federal uh payments that are reducing then school state school fund is the biggest part of the state budget general fund >> and and again this is flat. We were at one point getting told about a month ago it could be a 10% cut and again so so the fact that I mean it's not a win but it is the fact that we are getting flat funding at the federal level again we still consider that a cut but it is a it is a flat it's not 10%. Okay. Which would be more dramatic >> that we know of. Yeah. >> Yeah. That we know of. This is true. >> So that just brings us to the roles of the budget committee. Next steps. This is um our Oh, you want

098to talk about this picture though? >> So uh one of the things that um the we we've been working on this for a couple of years. Um we have what's called unified sports. Um it's when our abled bodies and our students with disabilities compete together. Um again there's different competitions in the area and up in the Portland area and there's a there's a three prong that we have to meet to become a unified Oregon unified championship. It's you have leadership, you're um involved in sports, and there's there's some community engagement pieces of it. And uh we met all those and about a month ago, a little bit over a month ago, uh they were recognized as a Oregon unified sports champion, so champion school for meeting those criteria. So, we're really working hard to how

099even though again part of this is we want to give kids experiences and um this has been a really good program. we have as going in the high school and a little bit in the middle school. So, um I think it's the important piece as we as we support all kids. So, again, uh administration presenting our proposed budget, which is our best shot at all of this. Um and then we continue to give you materials, advise you. The budget committee uh uh will approve a total budget and then you will approve the tax rates that we calculate that we need to um pay that debt service and to levy for operations. Then the board will adopt the budget either at the amount that you've um approved and recommended for adoption or they can change it.

100If they change it significantly or if conditions change significantly and we need to come back uh we can do that but they also then do the appropriation as to how much of the budget goes to each of the categories. The committee's options which you don't get to do this for a while yet um will be to approve as proposed to increase the appropriation saying Jen and Cece are being way too conservative. We think there's more money. We want you to build a total budget based on X or you're crazy. You're out of your minds and we think the total budget needs to be small. That's a committee option. Luckily, uh we haven't faced those really extreme. After the committee approves the budget, then the board adopts it and creates uh the appropriation amounts to direct

101spending by the district and then after adoption spending adjust and budget adjustments continue and again we are prepared for more volatility. So we are we are making changes throughout the year. Jen mentioned we get we look at enrollment we say hey we need to we need to pull back a little bit. We need to do these spending freezes. We need to reallocate. That continues throughout the year. Um, and as we've mentioned, this is how we're developing the budget. This is a multimage process. Um, our leadership teams have really had a big part in this. Our our buildings and leadership teams have been a big part of this. I these are not fun times. Um I am appreciative of the leadership across this district. These have been really hard conversations as we are working toward preparing

102you all a budget to look at. Um because some of these things we have to do on the front end. A lot of that will happen this week. Um which is again not fun to do anytime you're in a declining enrollment and looming cuts are coming. It's just difficult times. Um and we're trying we've been we knew it was the time was going to come and so we're trying to again do as many things as we can to not have to do many of those but there is still some of that is going to happen. Um and again as C says barring nothing else we hope these are this is it but um again we're still we're not there yet. >> Um I als we also mentioned our regional state partners. Uh Jen is part

103of a coalition of sup school superintendent. I am part of a coalition of school finance officials. We uh our personnel and our teaching and learning folks. So, we are working together with our partners throughout the state. We're working with lobbyists. We're working with our local legislators. What do we need to know to be able to develop the best budget we can and be able to help you understand it to do your job. So, um, ask what questions you have to answer to to, uh, be able to approve it. We're not there yet, so you've still got time for many, many questions. Um, and then dates, the the state's revenue forecast can affect the state budget. Clearly, they they figure out how much money they're going to get. um >> we're not hearing anything so we're

104somewhat we're reset that because usually if we there's a concern that revenue is going to be down there they're they're already telling us or they're there's inklings that there's going to be it's been quite quiet so we do not I think revenue is either going to be maybe slightly up or just flat but if in the past if there's been a significant change and the state economist tells the state the legislature could convene right and come back and say to get through the rest of 26 27 here's cuts we have to make or additions we could do and uh that would affect us at the moment not here um our this next meeting for this committee would be May 18th so another Monday night uh and then June 1st we have scheduled a third budget

105committee meeting um in prior years we got it done in to last year. We convened you on the first to make any final adjustments um because of unknowns and volatility. Um and then that part hopefully give you a budget that you can approve that the board could then adopt. Um we hold a public hearing on June 22nd and adopt that >> and June 1st is I have in my calendar as a regular board meeting. >> It Um, it says budget committee. Oh, we're going to meet before. >> We do it before. >> Okay. I couldn't remember. >> No, I'm sorry. Um, Susan, you did the board specifically asked for that to be >> Oh, yeah. We moved >> only a budget committee meeting. >> Correct. >> So, the board will have their regular board meeting

106on June 8th this year at the request of the board. >> Yes. Okay. Thank you. Thank you. >> Thank you, sir. >> Well, that's a Monday after one. Yeah. >> And that would be just the regular board meeting, but they won't be able to consider budget stuff then because we have to do um a public notice before they come in. So, um we can go over the FAQs that were in your packet real quickly if you want. Um and continue to send those in. I mean, that's really helpful for us to be able to get that information ahead of time. Um, so if you want to review those that were in your packet, the sort of questions and answers as of today. Um, uh, there was a question about bargaining, teacher bargaining contracts, and I

107think >> we're in that >> Jen mentioned we are negotiating both of those. >> So as we prepare budgets, we don't know where we might end up on those big significant costs >> in two years, aren't they? Is it a contract for two or four? >> We got to still be negotiating. >> So, right now we're ending a fouryear contract for clubs. We're >> But if they depends on where you end up if it's one or two or three or four. >> Yeah. >> Would any would a delay in kind of getting that figured out potentially delay our next budget? Are those dependent on each other? >> It cannot. Um we have to have an adopted budget by June and yet go backwards. what what districts do, what we've done in the past is either

108fake in a percentage increase and if that ends up being the agreed to percentage increase, we move forward. If it doesn't, then we make additional changes. >> Yeah. And when >> and I I want to be we are moving along. I'm appreciative of the leadership on both sides and and we are making progress. So again, I I I think we have good bargaining teams on both sides and I um like I said, I greatly appreciate the people that are at the table as we go through this process. >> Um there was a question about um student nutrition programs and we've talked about this a little bit before. Can we change our current program? Um we are and kind of longer winded an question and answer here. We are currently still eligible for the community eligibility

109provision. That's a federal calculation that looks at inputs such as students who are on known federal benefits such as SNAP, food stamps, right? The federal government knows that. They know how many of our students the state knows that. That's a poverty measure. So that is we put that in with some other poverty factors. And at the moment we are still eligible districtwide. That um calculation we are good through at least 2028. Um it actually is a little bit more but the reimbursement rate can change as those numbers dwindle. The reimbursement rate can change. at some point we can't afford to run the program with the community eligibility reimbursement only. The state used to supplement that but as part of their budget woes that's potentially not going to happen. So at that point we reook at

110our program. Um some schools could remain eligible for free and free lunch or free and reduced lunch. Other schools may not. And that's been sort of where we've operated in the past. Um and and we don't have a ton of control over that. It's it's >> um and just a reminder, if we want to get reimbursed at all, we have to meet guidelines. So, what is considered a reimburseable meal has to have fresh fruit or veggies, has to have the offered milk, has to have so much whole grain, has to have so much this, has to have so much. We can't just say, "Hey, we're going to save money by not doing fresh fruit because it's pretty expensive." Then we wouldn't get reimburse at all for the meal by under federal guidelines. So, um there

111was a question at the last board meeting. There was a presentation by the high school band teacher talking about the possible termination of Telmage band program that was I think based on a uh staff member leaving but it's that's not part of >> and and let me just add building principles right now we are continuing to work through projected FTE they've been working through that process with us for almost two months um and really looking at what those projected changes would be um uh and what we'll will do is positions that are going to be maintained. Um, and let's say there's a vacancy, they'll be opened up and posted on the district's career career uh web page, but will probably be later than normal. Probably sometime in May. Normally this time of year, we have

112postings up, but because of just some of the things that we're working through, those postings are going to get pushed out a little bit. So, >> and that's based on vacancies, retirements, people leaving. Um so to come information to come uh total amount of reduction on federal funding we've already discussed that and a good question about the contingency fund uh mentioned that we used to have contingencies for all kinds of things and now we've reduced that. Um the question was what would be ideal? So we used to keep up between 9 and 11% that we had available. Um the current budget we're operating under is uh 7 and a half or 7.3% of the operating budget. Love it to be 10 to 12%. That is that is much more comfortable. It does allow for emergencies.

113Uh but for example, just in dollar terms, had we tried to maintain that percentage of the general fund, set it aside in a contingency and not spend it, that would dollar amount would have been an additional $1.7 million in the current spending year that we wouldn't be spending. For our context, we call that about 14 licensed teacher positions that would not have existed this year or roughly our entire supply and material budget. All the computer hardware, software, pens, pencils, all of that would have been wiped out. So, not likely to build those contingencies back up in the near future. Um, why are we still using float? We've talked a little bit about this, but here >> it's a guide, right? It's it's part of it. We are track we track numbers all the time. We

114have, again, there's if you want detailed numbers of like even looking at the Oregon Department of Ed, you can go on their website, just put in Oregon Department of Ed enrollment. You see our enrollment in October and you see our enrollment in spring. So, those really are two numbers that they use. But again, we are doing headcounts really now every two weeks. We went past time, >> right? >> We went um you know, from that perspective, we're just we're using that as a guide to just make sure are we seeing the same trends from that piece of it. So, we do do headcounts and that is something that we do are doing constantly. Um but that we we do use it as a tool to guide our our decision- making. >> There were some specific

115line one item questions about revenue and so I've answered those here. If that was your question and I didn't answer it, be sure and u let me know. And then same with purchasing, what are our budget line items going to be? You'll see that at our next meeting. Um and then an interesting question about an alternative school. Um we used to have a completely separate program. Students were who had needed different learning environments be successful. Um used to operate in a separate building. um we have gone away from that and in fact we are consolidating some of our programming in school buildings rather than dispersing them to some of these other locations we have. Some of the locations we have don't meet school standards. We cannot have students for example in our annex it wasn't

116built to all of the building specifications that are required for students. So we'd have to do a lot of work to make that able to house them. Um but but interesting the challenge is Jen mentioned we have this transition program. Our adult 18 to 21 year old students currently are housed in this building. We we don't have uh food service here. So they eat a cold lunch every day. It's a district lunch. It's a reimburseable meal but it's a cold lunch. Uh we don't have that ability here. We don't have the mental health services and nursing services are available in other buildings and we don't have um enough staff to respond in emergencies or in um in incidents. So we're looking at potentially what what what where and what programming can be in different places.

117So again I think that's a bigger part of that conversation alternative. >> There's no additional money. >> Yeah. >> For al dent. So, it's taking away from regular classroom instruction to provide extra supports for smaller population >> and and transition's not alternative, right? That's a required program for 18 to 21. >> Um, but again, I think there's other things that we look at when we look at different places where we could put programs. >> The GED program, do you get funded for that for students? You don't >> we are we do work with them. So we have anou with them where they help service students and that funding comes out of high school success. >> Yeah. So we do we do have some money to put towards that. >> Yeah. >> To support them. But

118it there is a nonprofit that runs that program. >> Yeah. But any state funding or >> our state a portion of our state funding can go to that >> to get those >> they get separate state funding separate of what? >> Yeah. So keep the questions coming. Submitting to Paula. She's she's keep doing a great job keeping up those did Shannon have questions. >> So what we've got for you, sir. >> Perfect. So um I know we're already close to 8:00. We don't want to go too long here, but are there any unanswered questions? I know I jotted out an alpha that you'd like to pose now. If they're complicated to answer, we can just table them and bring them back. But anything that's top of mind? >> We talked last year about um how

119much of a swing there would have to be for the budget committee to have to approve something again. And what was that number? >> 10%. Does that >> we hope that that doesn't happen? >> Um I just had a couple of questions, simple ones. Um on the contingency I keep thinking I've got it figured out and then I and then I realized I don't. Um, but if we didn't use the contingency fund of $3 million, >> right? >> Would would that then go to the beginning balance budget? >> It becomes part of the beginning balance for the next year >> and it could be then used to for next year's >> just built into part of next year's budget. Right. Exactly. >> And do we plan on using that contingency because it doesn't look like

120>> No. That's our technically our big reserve. So that line out in 811, that line is literally hopefully there every winter because if it >> you said I hope >> because because if that if that were to start disappearing again we've seen it go down a little bit but well that's a by policy we have to keep that >> and and you can tell for example on page five and the expense part last year we budgeted to end up with 3.874 874 million right in the yellow column. That was the money we had set aside for various contingencies we'd hope not to use. But then if you go to the revenue, the prior page, page three 11, um you can see our actual beginning fund balance, which is the the very last purple number, is

121actually a little bit more than that. So we were able to carry over that contingency plus our revenue exceeded our expenses and the difference became the beginning fund balance for the current year. >> You spend down the contingency then you're just left with whatever revenue minus whatever savings and expenses. >> Yeah. And that's why that cash flow I'm showing now and I'm following super closely because that beginning fund balance >> because there's it's hinging on that. Yeah. >> And it's all funds. The cash flow I'm showing you is all funds. That's that's our full cash position. >> Um the only other quick question I have going back to attendance. >> Um you know as a parent with kids in the school if we have just a dentist appointment, right? So we we say hey you

122know it's an excused absence because we call in or whatever but at the end of the day that >> that impact is that kid or those kids are not in attendance. Correct. >> Correct. >> It just doesn't matter. >> Yeah. And that's I mean again I think that's that's that's part of and and again we want to be clear like we want we want students to if they're sick they need to stay home, right? They have a sniffle they can come to school. they're running 100 fever, they should not be coming to school, right? Like like all of those pieces play into that. We know that at times again and I'm going to say doctor's appointments just in general or medical, it's hard. So if you get a appointment at 12, right, we understand that

123families are going to have to make those choices, right? I think what we're trying to say is we want kids there as much as they can be knowing that there's other parts that we have to have to work through >> and >> but it does play into our attendance rates and and those types of things. It just is is it is what it is, right? >> But as a followup then if if they miss they're not there at the start of the school day but we get them there before school ends, does that >> Yes, they partially Yeah, absolutely. They get to partially count for that day. They may not count for the whole 90% but yes, absolutely. They're still getting to be found without attendance. >> Okay. >> I just wanted to ask because

124as a parent it's like >> you know I actually have some influence over attendance. >> You bet. >> So make your appointments in the morning. >> We actually do. So it works then after it's hard to do both do the best you can. >> I know. >> I always think about attendance and you have to >> I appreciate that. We all appreciate that. But we know we know families have to make those decisions as well. So, are any other questions? If not, then we will go into recess until um >> May 18th at what was the time? >> 6 again. May 18th. So, we will we will go into recess. And again, any questions that you think of after go back. >> Yep. come back with more room to polar and um I also appreciate

125everybody's time tonight and the time I spend in the next couple of meetings. Thank you.