001Okay, we're back everyone. Um, thanks for your patience while we resolve that and we're going to hand it back over to Lauren to continue the presentation. >> Thanks. >> Okay. We good? Thanks, Josh. Okay. Um I think where we ended out uh was talking about our substitutes. So we we do um contract our substitutes for uh classified and certified um with EDU staff. And so the assumptions around our substitutes um have to do with trend data as well as um any fee adjustments in the EDG staff um contract. So we do follow um if you're unaware there's there's required minimum substitute rates in the state that the state sets every single year for both certified and classified. Um, and we always try to pay a little bit um, higher than that to um, to attract
002people to to fill our sub jobs because filling sub jobs could be a full-time job all in itself um, as Melissa's team knows. And so we also know that we have a decrease in substitute eligible staff. So therefore, um, it's not just a a straight across uh, a percentage that is applied there for our utilities. Um we um just being conservative there, we base that on the higher of the February uh CPI rate or a three-year trend um depending on where that lands. And then for our property and liability insurance, which is one of the least fun um aspects of running a school district, um is we this year the market has settled down a little bit. I know 10% still sounds uh extreme, but last year we were looking at uh percentages of around
00318%. Um but unfortunately um it was our turn to have our property assessed. So we are we are insured under PACE which is property and casualty. What's the E? >> You're on the board. >> I'm not on that board. You want me to be on that board? I'm not What is the E? I don't know. >> It's just one C. >> Okay. It's the insurance that it's the uh it's it's sort of like a consortium that covers um public entities as well um as special districts. And so there's a cycle in which they come and they evaluate all your property. um and are they're proposing an 18% increase on our property values. So although the premium and the market has simmerred a little bit um for premiums, we then now have to um adjust for
004that increase in our um property values which is somewhere in the ballpark uh of about millionish of the things that we cover on on that policy. So, how those two things shake out. Right now, we still haven't signed our renewals. We're just submitting paperwork for that. Um the that actually will also include things like workers compensation. Um we have a really good return to work program. So we generally are able to get staff um who are covered under workers comp back working in a different capacity and so we limit loss in that way. Um but just workers compensation is something um I think that will continue to be a topic um in public ed um for years to come. Um and then also under that um the biggest drivers of of those premium increases are
005cyber um and then also sex abuse and molestation. Um and so there's many claims that um are that you'll see around the state around um the nation related to that. And so that is in the general market. those are driving up costs for um K12 public school districts. Um not specific to our experience here, but um it that's what when you're in a consortium, that's that's part of what that looks like. Um, I did actually have a um we are have a great insurance agent of record and I was speaking with them um about a month ago about at what point um do we look at being self-insured or insured independently um versus in the consortium model. Um and uh they were able to provide me the financials on that and and show that we're
006not anywhere close um to to moving outside of Pace. Right now there's a few districts in Oregon uh Salem Kaiser and uh Beaverton school district. Is that it? >> I think it's Portland and Beaverton. I'm not sure about Salem if >> Okay. Portland and Beaverton maybe. But anyways, districts much larger than us. um and at and they are I think considering that um the possibility of of that not being um the most cost effective to them, although I'm not sure that they would be allowed into the pool at this point based on their experience data either. So that's a messy one. Um but something that we deal with every year as we go through the budget process. Yeah. Um, and just to clarify, so when we see headlines of stuff like that, like there's a
007bunch of headlines about certain school districts, those increase our rates, right? >> Correct. go out to market >> um >> together. Where that might look different is >> if we ex if you experience um a claim whether it's for example a few years ago uh ice storm we had a pipe burst in Shuttle and Gym and we experienced a property loss claim related to that. So that's going to more heavily impact our rates because it was specific to us. Um, but it also will impact everyone else in the pool as well. So, there's been some pretty large property losses in the last few years down uh southern part of the state as well as Bend. Um, and so those big claims affect the whole group's um history. But >> yeah, thanks. I think that was
008helpful that way people understand how that works. >> Yeah, Britney. Um yeah the uh contracts for transportation and also substitutes are they annual contracts or are we are they multi-year and and I guess what's the basis of your assumption of plus 4.3% uh uh using >> yeah that's based on uh trend information. So specific to our transportation contract we have a base rate that we've agreed to through that contract negotiation. It's a multi-year contract. I think we have I I want to say this is our last year like June 2027 I think is when this current contract ends. Um there is some extension clauses on that for maybe a total of uh three more years afterwards if we choose to um utilize that part of the contract. Um and so it's based that amount is
009based on the largest part is a flat fee for service and then on top of that there are we get build for like what they call special trips. So, for example, we may have um kiddos that need individualized transportation. And so, that's a specific vehicle that is um providing those services both through our bus contractor as well as um we have another we work with dialob bus for a lot of those individual transportation um because they have like smaller vehicles that make more sense for transporting one person. Um so, it's based on that trend data and a lot of that we already know. um the mileage per mile for trips. We can look at all of those different pieces and and look at it. Uh it's just under $7 million, but like I said, 70%
010of that is comes back through the state school fund. Um but we have we budget the full amount so that we have the appropriation and the authority to spend. >> Yeah. >> You said the 70% was for from home to school. Is that how you defined it? Is does that include intra school transfers? Like so at the end of the day when the the K through six will be going to middle school that also is included. Got it. >> Yeah. That qualifies as home to school transportation or um if we transport kiddos to like maybe they go to a day treatment program or they're receiving services somewhere else that's not on our property um as a part of their educational plan. It would include it would cover all the transportation related to that. Really, the
011biggest thing that it doesn't cover at this point um is athletics and um other extracurriculars like robotics um and clubs that are using it for um like we have a club that a summer program that has gone and it's like a it's a club that they want to go and like try different restaurants or something. And so when they apply for their grants to do that, they have to include like the full amount of transportation. Most things are covered at this point. The the non-overed transportation is really minimal. Bless you. >> What about organic um transportation like don't you have a a pool of uh vehicles that people can check out or responsible faculty member or something? >> It that does not cover that. We do have a we do have fleet vehicles, but this
012is specific to Are you talking about the vehicles that we use to transport kids or just that we're using like our our technology and maintenance crew uses? >> And my my assumption is that there may be some smaller trips that we don't use a contractor for. Oh, and we use a fleet vehicle and so on. Is that factored in here or or is that >> on those vehicles? Um, and so there's field charges for those, but that isn't built under student transportation. So, you're correct. We do have activity buses um at both of the high schools. And so, they'll use those. Um, I would say they probably use those almost every day for one sports team or another, but those generally aren't used for what I would uh what would fit under the reimburseable transportation.
013Yeah. Okay, can move on, Kim. Thank you. Um, another important piece to to talk about in the our general fund is our local option levy. So, the assumption there is about an increase of about 3.9% um, which is about $382,000. That is is purely based on historical uh data based on uh it's all tied to tax assessment, right? And so um that is trend data. Um and just as a a reminder maybe new information for what that pays for. Um so that helps us with our um reducing and keeping our our class sizes lower um than the standard. We also use that to pay for our elementary specials part of it. It covers probably about well probably a little less than 50% now of our music. um PE art teachers and then that will include
014uh steam as well and it helps support our vocational and technical education programs. Um we do receive um grants. So I mentioned earlier the student investment account, high school success, um Perkins funds, but all of those are impacted by external sources and so um the local option levy helps fill in gaps there. Um we do have a robust school counselor, social worker, mental health program. So it supports all of those things. Um some instructional coaches and mentors uh to improve teaching. We've eliminated most of those positions or um some of our instructional coaches are paid through different funds and so um not as much is spent there any longer. Um but we and then also supporting those um extracurricular athletics and activities. So we have not for the last several years um charged fees to
015participate and so those dollars have helped with that. Um the sustainability of that is is sort of in question and um we have to we have to decide if we want to continue to to do that or not. Um but that is what we've used to support that. So for example all of those um extracurriculars if they need transportation that's um generally a huge expense. um for them to to for that all to just be funded through uh the revenues that we bring in through athletics, right? Um and so we haven't really increased a lot of our we haven't had participation fees. We haven't really increased our gate fees much because we're trying to eliminate barriers for families. Um and so thinking about how we can continue to do that. One other thing I'd share
016about the local option levy is that in Oregon um we're in a state that does a great deal of equalization across the state in terms of the funding districts receive. The only thing really generally outside of that is a local option levy that's passed by a local community to enhance um the programming that their district is able to provide to students. And we've been fortunate to have that levy um to be able to provide some services that many of um districts around us are unable to do. And that's really been the commitment of our community that's allowed that to happen. Um which again is pretty um pretty special and what we're able to do as a result of that support. >> Yeah. >> Are there any statutory constraints on what those funds can be allocated
017for? Um well, yes and no. Um when you you run on a ballot measure and so generally you when you're running you have to submit um what you will be using those funds to and the voters then can hold you to using them for those specific purposes. Um so they shouldn't generally be used for u I think capital projects and things of that nature. Um there's different avenues for that, but in general, I'm not aware of anything very restrictive. >> It's it's pretty flexible, honestly. Um a couple of districts in Oregon recently have gone out for local option levies. Ben being one that went out recently as they're looking at um reductions that they're having to make. I know that Cam's um in the middle of one for May. So districts are using those um
018as a way to try to maintain programming and so they are fairly flexible. Um is the so is the um not having athletic fees is that part of the levy helping with that? >> Um we introduced that actually related to so we we support um extracurriculars for middle school and high school with a combination of local option levy funds and as well as the student investment account funds. And this part of the uh requirements for um the student investment account um have to do with removing barriers and providing um access for for students and enhancing extracurriculars. So we sort of braid those two funds together and able in order to um support that. What I would say about um athletics specifically high school because if they're competing at like OSAA um and that includes um
019band, vocal music, you know, a bunch of different um activities is that the fees for tournaments, um the referees, there's sort of a um there's very there's like one organization for each sport in the state that that as referees, right? And so they can charge really whatever they want. And if it's a sanctioned sport, you have to have that. Um, and so the cost of continually doing that, as well as providing um, uh, uniforms and safety equipment, all of that is growing much quicker um, than any of our revenue streams that are supporting um, extracurricular. So, it's that's it's not about not wanting to use local option levy funds for that. It's about these these revenue sources that we've been able to blend together um are no longer enough to continue to support that which
020is sort of a common theme. >> Okay. Thanks. I was just wondering because that is such a huge benefit for students especially student athletes to not have to pay for all that and I know the fees go towards all the things you just mentioned. >> Correct. >> And so I just wanted to >> clarify that this is helping pay or cover that for students. Right. >> Yeah. And before, I mean, we had opportunities for um students that um needed some assistance, but having to go like to the office and say, "I'm on free and reduced," which we don't currently do. Um just to get a reduced fee, like that in itself was a barrier. Um and so what we have seen since removing the fees is much more participation and then much more participation um
021in our students navigating poverty, our students um of color, all of those pieces. So it's done exactly what we wanted to see happen. Um and so we have to figure out how we can keep doing that. And we actually have probably some of the best participation numbers that we've had postcoid right now of student athletes. So there's a lot of also a lot of information around or data around that research about the connection on student academic outcomes and participation in extracurriculars. So something that's important to figure out how to maintain. Okay. Um, I promise we're getting towards the end of all of the information. And this is the least data and numbers heavy part that you'll receive during the whole process. So, um, for our school discretionary budgets, um, our this one is weird because
022there's a plus, but there's also a minus. So, for budget assumptions, we're increasing, uh, five to six% per weighted student. So we weight our our students at each school um by students navigating poverty, students with disabilities, emerging bilingual students, and students showing opportunity for growth, which is based on um the performance metrics that Chris you uh mentioned earlier that the state tracks. So we um do a weighted calculation for students by building and then um so next year for each weighted student they uh will get $210 at K6 uh for 7th and 8th 350 and then 9 through 12 360. So those dollars don't have to that's not about the spend that we spend for those students. It's just um these discretionary dollars that are then allocated to the schools um and the principles can
023decide like how that all plays out in their building. So some things they will do is a lot of them have goals around like um community building and so maybe they'll do um some school community events and they'll use those funds to pay for that. Um they a lot of schools like to have like the kiddos like the their logoed t-shirts of their schools. Um different pieces like that. So those are what those funds uh go to. It's really just for principles and the leadership teams at each school to decide. So we've increased those allocations from last year um about five to six% per weighted student. It's different by the grades. Um and then but overall in our total budget the school discretionary allocations are actually going down uh 28% or or about $782,000 because
024we have less kids and so that's how that all plays out. So the amount per student has gone up but the total spend on school discretionary has gone down. Questions on that? Can you just address the discrepancy of the K through six being almost half of 78 and 912? >> Yeah, so a lot of that has to do with the um extracurricular activities that are offered at uh uh 7 through 12th grade. So a lot of those um groups have um many many many clubs. we have more clubs and um act student groups that I am aware of uh or that I was ever aware of until I asked at our at our high schools and middle schools. So, for example, um like our high schools, they have a robotics club. Um and so they're
025some of their discretionary money at um our school, our robotics team that is actually going to worlds. Is that how it is? Um so their their principal has allocated some money to robotics club and the other clubs that are within their school and just because um those things are are there's there's more things to pay for um at a high school as far as activities go and a lot of um the courses are also more um maybe materialheavy like for example um in some of our T CTE courses is and buying like for example um welding equipment or different things like that specific to the programs that they are um offering in their school. So anything maybe that goes outside of the regular curriculum um or things of that nature. I would say also um
026at those grades they do use that to pay staff additional time like stipens to be leaders of different clubs and things like that. So, >> and I'm so sorry for my ignorance on this, but um when you say weighted student, that's usually based on like disability or IEP and that kind of stuff. >> It's u students navigating poverty, students u with disabilities, emerging bilingual students, and then are students showing opportunity for growth. >> Just maybe a silly question, but let's say that the students in poverty and they they need help with reading. you know, welding may not be on their list, but so so some of the money that's dedicated for them to like do better at reading and navigating poverty could be going towards a welding program that they never participate in. >> Is
027that fair? >> Sure. >> It's really up to the principles to utilize those dollars to best meet the needs of their students. And so in the example that you gave, um, a principal may decide, "My students are struggling with reading. I'm going to put my dollars into supporting additional educational assistant time or some additional curricular decisions that provide um additional ways of teaching reading. So there's So again, what we're trying to do is provide a budget overall for schools, but with some flexibility that's that schools can make adaptive decisions during the school year on how to use funds to do the things that they know are unique unique to their building um based on context. And so it's that approach that we try to to provide. Yeah, I guess I gave more of like the
028the extra activities that kids like to do examples, but yes, we frequently see them using um that for additional staff that they want to uh for a specific need in their building, not related to like they already have the base staffing for all their students on IEP. Um the our our title one schools have additional staffing related um for that. Like so there's are those all those label layers already and then this is just additional funds that they're able to use um for what they feel like meets best meets the needs of their kiddos in their school. >> And just so to be clear it is up to the local principal. There's no oversight or audit and and in theory we don't really check to make sure this is being utilized for those students that
029are waited and not in a bad way just that's the current situation. That's no. We have uh board policy that has a lot of uh procurement guidelines and so it has to be spent on things that are allowable to be spent on. All of our purchases require uh approval before they can be made. So I would say um saying there's no oversight is not accurate. Um and it's not only for those kiddos. There's a base amount per kid and and then there's an additional amount for the waiting just like there is in the state school fund. So there's a flat amount per kiddo for like an amount for every kid. Um and then the um higher acuity needs of the students in the building would generate more dollars to come into that to then fund
030those additional things to support their specific needs. >> I'm just circling back to our parameters and making sure that all the money is going towards the needs of these students. And if this is money that's supposed to be selected for those students, let's say title one in poverty, um I don't mean to say there's no oversight, there's no check back on the budget to make sure that money was spent in ways that we could show data that that said it would actually affected them. >> So like fourth grade reading, let's say at title one schools, as an example, >> there's um when our principles put together their school discretionary budgets, they have to tie every dollar of their discretionary budget back to a board goal. And then again under the board goals, there's all of
031the specific metrics that we're trying to achieve. So they have to say when they're budgeting their money, they have to say this is what I'm spending it on. It's related to this goal. And and so and there's no option to spend money on anything that's not tied back to a board goal. So that process usually happens when um if if a principal is struggling during the budgeting process, which was months ago that they had to turn this in to me. Um we we said they'll say, "I don't know how this fits." And I say, "Then you shouldn't be spending the money on that because it doesn't align it doesn't align with one of the metrics um that as a district we have decided is important." So it's all attached to that. And when we have
032the actual budget document um in a few weeks, it will show you the percentage of funds that are being spent on each board goal and the school discretionary. And so then when they uh in the fall we do um our scorecard dinners by level and then their shareouts based on how they did um at achieving those goals and then what they had in their budget and what they spent it on is tied back to that. So it's all connected in a loop in that way. Yeah. And and needs change like and so it's a plan at a certain point in time. Um, but that's what they have authority to spend and they can't actually make a purchase for something that isn't uh a part of their plan because it's all through an electronic uh management
033system. So, >> and maybe you can speak uh to the idea that the it's not working. >> Yeah, the lights is not working. uh maybe you can speak to the idea that the discretionary funds are the last layer of uh discretion for the principal on top of uh layers of grants that changes from uh one grade level to another. So for example uh early grades they might have reading intervention funds and uh in high school and middle school you might have measure 99 measure 98 for credit recovery and other things. So whatever a principal chooses to allocate funds to is really the delta that's lacking >> yeah uh funds for that supports their priorities that's missing from whatever available grants or the general fund is supporting. we're talking about um it is it's truly the
034last layer of funding um that that we allocate out but we're talking about small dollar amounts like for example at Franklin they're uh for it's a hard example because it's K6 so or K8 and for but for the K6 grades they get $46,000 for the year like that that it's a it's a small amount um to just go on top of all of the other layers of funding that have already been um allocated to the school that are attached to all of the the different metrics. So >> quick question, what is uh students showing opportunity for growth? >> Yeah, so we look at um our students that are below the um the targets on the uh state testing rubrics. So um in elementary school, the metric that we look at is third grade reading. um
035for middle school it's the it's eighth grade algebra and so we look at those percentage of students that are meeting that goal and then we fund on the amount of students that are not meeting the goal. Um and then for high school we use 9th grade on track because if we only funded on four-year graduation rates that doesn't actually serve the kids that are still in the building. So, it's it's based on that ninth grade on track number. Okay. Next, it's you, Kim. >> Um, and then the department budgets, so departments don't receive an allocation the same way that schools do, right? Um, and so our department budgets, um, the assumptions there are an increase of 3% or 1.2 2 million um which in which includes a reduction I was looking at this today and
036was pretty shocked um of about 6% FTE and that's really just to speak to the fact of how expensive FTE is and um we can have less FTE which is over 80% of our budget and still spend 3% more. So, um that is what that looks like for our departments. As um department leaders, we went through we don't always do it um but it's good especially when we're talking about um big structural changes. We did what's called zerobased budgeting. So, all of the department uh put together all of the departments put together budgets based on from zero. Um instead of looking at what they spent last year and just increasing that amount, they had to rebuild it up. um from from the bottom up. And so that included, for example, I mean, our operations department
037is like the easiest one to give examples on, but um that included a project list for all of the deferred maintenance, all of the um different uh capital projects that they are expecting for this budget cycle. And so that's all tied back. Our departments as well um have to tie to board goals with a caveat of um there's uh in the board goals for me it feels like there's something missing as far as like responsible stewardship of resources. And so we as we've gone through our score scorecard process um it was really hard um specifically like for the finance team and my payroll staff um to talk about uh directly relate their work to student outcomes. But for example um the the way that my uh our payroll staff and our benefits staff um our
038HR staff that they impact the staff experience heavily positive or negative. And I believe that like when our our staff are well taken care of, then they can take care of students. Um and so that's how we're tying to the board goals. Um but there's our SG um budget, student growth and experience has the largest departmental budget. Um for example, special education lives under that budget. And so those are all tied directly to the four board goals as well. So, it's all it's all tied together that way. Yeah. >> Lauren, for folks who may not know what falls under department as a header, you mentioned operations, student growth, and experience. Could you name some of the other departments just to give folks some broad knowledge of what that refers to? >> Yeah, the superintendent's office.
039All three of you that are in this room. Um and then so the superintendent's office um the assistant superintendent's office which um includes human resources all of that work now lucky you uh student growth and experience um technology operations and finance oh and nutrition services but they're under operations but they're they're like a sub department I mean under those under SG for example is special educ ation, mental health, family support, um, English language learner support, um, nursing, alternative education programs, um, what am I missing? I mean, those are the broad categories, but there's a ton under under all of those. So, all the operational side of how things happen. >> Okay, Bernie. Um the FTE reduction is that through attrition or is it uh uh directed >> that that you >> It's both. >> Okay.
040>> Um we've there's some people at the district level that are on layoff. Um and then there's some where we just chose not to fill position. So it's both combination. Yeah. Okay. um projected ending fund balance is the last slide of numbers as far as I can remember. Um and so what I wanted to just show you here is just how that's happened um over time. So really during that the co era which at some point I hope we can stop talking about um but that's where we did um we grew a a fund balance at that time because of the operations largely being shut down on site and moving to virtual learning. And so over that time period um we have been buying it down um and our required amount is to say above
041that 12.5% and so this year for 2526 we're I'm currently projecting which again changes um every time I get a new piece of information Um I'm projecting an ending fund balance about 15.2 million of our um general fund which is about 15.4% of our operating revenues. So we're still operating in a deficit which is what you see by that change in fund balance. Um but this was this this has been a part of the plan in order to um buy down that balance and and programmically keep things intact. So that is what we're up to there. Um, and why that's important is because our ending fund balance for this year becomes our beginning fund balance and is our first source of revenue for next year. So that's why that's important. In the budget, it'll it'll
042stay at that 15.2. Um, what the actual is you I really won't have that number for you until January of 2027. Um, because that changes all the way through when our audit is finalized. Uh Lauren, I'm trying to make sure uh in simple terms what you're saying operating in deficit. So going down from the year 2024 25 uh with ending balance of 17.9 million >> to projected 15.2 2 million is a strategic an intentional step uh going down uh to preserve as many programs as we can this year and moving toward the 12.5% required reserves. However, what that sends a message to is ne whatever programs are preserved from that's buying down may not be preserved next year unless we have additional revenue. Correct. >> Correct. Like I think hopefully has been illustrated through this
043process is you can see our expenses are increasing much faster than our revenues. Um and so that's what I mean by operating in a deficit. we are spending more money than we are bringing in. Um and so our just those PERS rates alone, if the only expense that increased in the not this budget cycle, but the next one was those PERS um rates, we still um with I mean I don't have the numbers that I'm off the top of my head, but we it would be really hard to operate with the same level of staffing and programs if that was the only thing that changed. And we know that that won't happen um because everything I mean people are feeling it at their homes um and and the same concept applies in the school district.
044So, um, yes, our our expenses are outpacing our revenues, even if we weren't adding any FTE or adding programs, but the cost to run those, especially when 80% of our budget is salary and benefits, um, that's the driver behind that. So I mean in our our intention especially when we had those um the additional dollars during COVID which offset some of those expenses and then led to that higher general fund um ending fund balance. The goal would be to not spend those on on um one-time dollars, but to try to smooth out the trends of all of the the changes in expenditures that um we have. So, >> thank you. >> Yeah, >> and I may be totally off here. As I understood it, the budget every year we we target to try to hit
04512.5%. And that's the mandatory extra. So, so anytime we're over 12.5, we're not in deficit. We're actually in surplus. We didn't spend our full budget. We have extra. >> Because a re uh the deficit is based on revenues and expenditures. Fund balance isn't a isn't necess isn't a revenue. Um it's dollars that we are able to use, but it's a actually a um it's not something we're bringing in in the current year. So if you look at our revenues and remove the fund balance. So we have we have a fund balance then we have our revenues and then we have our expenditures. Okay. So if you look at just our revenues which are the dollars that we have received in in the fiscal year we have less revenues than the expenditures. The only way that
046we are able to operate in that way is because we have the fund balance. Um, and the fund balance being above the required 12.5% is what allows us to do that without having to um to to authorize additional funds um within that board policy related to that. What we know is when you create a budget, I mean I prefer it this way. I prefer that we don't spend 100% of our budget or over because um well, first of all, we don't have the legal authority to do that. And second of all, that means we had a really bad plan. So what we know is we generally spend around 98% of our general fund budget of what we budgeted in expenditures. And so that amount sort of rolls over into that fund balance. Um and that's
047the goal. We our budget is our cap of what we can spend and our legal authority to spend that amount. That doesn't mean that we will spend every single dollar every single year. And I would highly um recommend that we don't because we were not allowed to operate um in the red. So that is how that happens. But if you're truly just looking at revenues and expenditures, that is our operating deficit, >> right? And you're totally right. We we get more money every year, but we spend even more. And that's what you're correct. Like on the deficit, I'm totally with you. But on this case like and I look at 2425 >> we were at 18.3% which meant we left >> like 4% on the table which is which is good for next year but
048in that year we made cuts and so I'm just thinking again by the parameters like it's not for the adult it's for the kids we need to be as efficient as possible. So if we're leaving 3 or 4% on the table that means that was money that could have been used that year for services for those children for third grade reading for eighth grade math for extracurriculars. And I just want to be clear like it's not good to have a 20% ending fund balance. That means we didn't spend 7 and a half% of money that we should have been spending. Or am I misunderstanding? If anyone could help me. >> I Well, I think that's opinion. Um I would say in the climate in which we operate in, 12.5% is not enough. I've said it
049several times. 12.5% does not even pay one month of our operating expenditures. So yes, the absolute floor is 12.5%. Do I think it's fiscally responsible to operate at 12.5% every year? No, I don't. >> Just to push on that really quick, a lot of other districts, our other nine comps, don't generally have that high of an ending fund balance. >> They actually do. They just they just don't have it in board policy. But if you actually look at what they're spending in their audited financials every year, um many the average we are right in the average of what people are um doing. We also have um because of the financial position that we have taken. I understand that decisions that have been made in the last year have been really impactful. But those would have
050been we would have been closing four schools if we would have been spending down to 12.5% every year minimum and cutting probably music, art, I mean all of it. We wouldn't be able to afford that if we were spending down to that level every year. >> And just for the record, you'd acknowledge that most other districts don't have a 12.5 requirements, usually 10 or lower. >> no. >> I'm saying that they might not have it in board policy, but what they're doing an an action um they are holding those funds. I have looked at their financials. I have um gone through all of their financial reports to look at that to make sure that we are um operating in in a reasonable way. Um I would also say if you talk to people who are
051doing this work. Um they would acknowledge that there are other ways that they are coding um financially funds to hold them aside and we don't do that. our financials. We we we do recognize savings for sure, but we don't have like this side account that we put money in for like a rainy day sort of situ I mean, I don't want to that's probably not the right word to use because we do have what's called a rainy day policy. Um but we're not like we're not fake budgeting positions or um inflating costs by uh a huge amount so that we can recognize more savings. We don't do that. Um and so that's also part of it. >> And didn't you um if memory serves it wasn't Oh, sorry. >> Sorry. I'll finish. I'll go fast.
052Um, it was the year before last that we went through that process of identifying other districts and whether which ones did have policies and which ones didn't, but where they were um overall in terms of their um those reserve dollars that we are right in that ballpark. Sometimes you'll see districts that are larger in size, Beaverton's, Portland, Salem's, and their percentage may be lower because of the the scope of their budget, but um across the board we're pretty much um in in the middle. Carla >> Lauren, I wonder if it's helpful also just on this fund balance um to acknowledge and clarify that those dollars are really just one time. >> That once they're spent, they're gone. They don't get replenished necessarily unless you're doing a rebalancing of your budget somehow. So >> making those
053investments into some sort of ongoing program is actually not going to be helpful because you can't sustain that commitment. >> Correct. Yeah. Um so and that's why we largely use it to um offset that difference between how fast expenditures are growing um and and using it that way. But at a certain point as you as we have seen there there's a breaking point that comes um where you you still even using that strategy you still can't sustain um the level of spending. So, um I again that amount of money doesn't pay our expenses for one month. Um, and so I don't I don't think that it would be fiscally responsible for us to carry funds um at a much lower level than that, especially with the volatility of federal funds. Um, which then impact state
054funds. Um, and so how I mean really in worst case scenario, how do we keep the lights on and how do we pay our employees so that they're able to afford to live if we don't um if we can't even cover one month's worth of expenditures? >> You mentioned you don't think it's financially responsible. I I appreciate your opinion. What What do you think would be a responsible number? I would say two probably at least two months um of operating expenses and that is um still I feel like um not as conservative as I would like to be but we are talking about public funds and serving kids that are in student in in our buildings now and so if I'm talking about operating a business versus operating or or serving students those are two
055different opinions that I would have. And so, um, we need to be able to balance both of those things, which is why we sit at around that one month mark. >> Yeah. I would say this is a really good conversation and whether it is a conversation toward policy review the board policy review uh 12.5% above or below or the budget conversation which is in excess of 12 12.5 one thing I think is important is comparison with other districts and the utility of uh those funds uh when needed but also the historical uh institutional background uh which predates all of us on this table. The the story goes is that in 2011, if I'm not mistaken, when the legislature uh decided to not honor their commitments during a bienium in the aftermath of the 2008 uh
056uh recession, great recession. Uh basically, school districts had to lay off uh teachers and uh classified staff in a way that's really hurt kids. my understanding of Corvalis school district either that we did not lay off any or and I believe maybe Chris was here as an employee uh either we did not lay off any or the impact on the school district was very minimal compared to other school districts it softened the blow so we were able to ride that really aggressive wave uh in economical situation uh especially in a state where uh we don't have all the legs of this tool absent of sales sales tax, it's really hard to recover quickly and it helped us to recover much smoother than other school districts that did not have that level of reserves. So, I
057think that's really important to elevate because it's a situation truly once in a career situation and uh I hope I never observe it while while serving, but it's important to know that we could observe it while we're serving. >> Well, we had we we had the probability of that just this year. So there was the possibility that that the state school fund wasn't going to be funded at 100% after we already had a bianual budget signed in uh into law at the state level. So it's not a uh really a maybe thing. It happens. I think I think this is a really important discussion because it's the budgeting process for school districts is and from the state perspective is so complicated and it's really in nobody would budget their household this way. It wouldn't make
058any sense. Um we build one year we build a budget before we even know how much money we have. We have to build it before because if we wait until we know how much money we have, we don't have time to build the budget. So we build a budget without knowing what the number is. The next year we build a budget based on knowing what the number is, but uh not knowing if the budget that we built the first time around actually holds up under the budget when we didn't know the number. And so then we have to correct it and then we do it all over again. Rinse and repeat over and over and over again. And so I think that when we talk about this amount of money, it's in the grand scheme
059of the cost of the district. It's not that much money. It's not enough as you mentioned, it's not even enough to operate us, keep us going for a month. It is enough to keep four furlow days from having to happen and that is the climate that we are in right now. I have been in both I think on both sides of this conversation at various times. Why don't we just use a little bit of this and see what happens in the next budget. What about if we did this and then see what happens? I think that where I have landed is that um whether we do or whether we don't, this is a kicking the can down the road situation. I don't really think we should budget with a kicking the can down the road
060situation. It's very clear that the state has no intention to come and rescue districts and so we need to do the best we can to rescue ourselves and I um I think that um at this moment in time I don't want anybody else steering uh us to the shore uh than you. And so if you're coming and you're telling us that right now the best thing for us to do is make sure that we have some money when the state doesn't show up then I think that's what we ought to do. And I appreciate you being candid about that and I recognize that means we have to make hard choices. >> Um, but I just really can't imagine that the average person wraps this is just not how people deal with money in the real
061world. This is how the state deals with money. And so I think you're doing a great job advising us. And two months would be great. We can't do two months. One month is has saved us before. I think less than one month would be really problematic. So, I just I want to acknowledge >> the ridiculousness that this is. Um, I want to put the responsibility where it belongs, which is in Salem, not here. Um, and I want to respect that this group works really, really hard to do the best they can with the system that frankly just even the people that are passing the legislation, they know that it's broken. So, that we just cannot own that in this room. We did not break it, but we are doing the best we can with it.
062Thanks, Um, I would say just just for context too, um, just to pay our teachers for one day is uh $270,000 per day. Um, and that's just about half of our staff. And I just I did that number first because I had to look up a a teacher amount uh per day earlier today. So, I had that in my head. So, just that amount um is pretty substantial. And we have contracts with all of our staff. Like everyone who works here, we have an obligation um to make our payroll to them. So um okay, that is my last slide. Um there is we've had discussion. Um I know Lou, you had mentioned maybe you had some questions from earlier. So um I'm happy to take questions or um suggestions on what would be helpful for
063you when I bring the the budget forward. Yeah, I wanted to see if other folk had questions because I wasn't thinking we were going to ask questions during the slides and um so I had written some down earlier and that would not have made sense to ask at that time. So if anybody else did that, I wanted to open it up to other budget committee members before I I asked my I might have the same ones or you might have different ones from earlier in the slides that may not have got to ask any. Go ahead. So I was thinking about some of the questions that I've already heard and in speaking to other community members and it seems to go to the importance of trust in the community in us who are sitting here
064at this table um the board and the staff and so the thought that came to me is that and I wrote it down so it's just easier this way for me over this past year um and last year when I was on the board. Um, this committee reviewed substantial demographic information, um, facilities data that inform the priorities that have come up and will feed into the budget that you'll be presenting to us to review. Um, and so my thought is that to help support that trust, community's trust, if the staff could make clear where that data is that we will be looking at as we evaluate the budget um to present that data on the school um district website, which I know it's there, but like making that clear so that folks who are listening
065and watching this can see and um benefit from that same information that the board and the committee is reviewing. So, >> yeah. Um, and we have, if you go to our website now, just for anybody who's listening, we have reactivated on the front page, there's a circle. Um, I don't know, Kelly has a special name for those buttons. Um, but it's on the very front page on the kind of a little bit down there's a budget updates. If you click that and go there, all the resources like the presentation from tonight will be linked there tomorrow probably. um and any materials related to the conversation as well as when the document is released. Um just to be clear for the public too, the public receives the document at the same exact time that the committee
066board, everybody receives it. So, it'll all be all there. Um, and we'll continue to post updates there. And I'm sure that Kelly will be working in updates from tonight and other um, conversations into our messaging that also goes out to community and with links and all of that as well. So, happy to continue to highlight where all that stuff lives and how to get the information. So, the budget document, just for anybody who hasn't looked at it before, is not just um a book of tables. There's actually a significant amount of narrative that explains it um as well as the actual financial tables and then the supplementary materials um with a lot of student data um and just district data as well that that goes into that that. So it's there and um happy to
067figure out ways to to better convey that information to our community. Lauren. Oh, that's good. Um, >> yeah, >> I'm remembering last year when we talked about the schools closing, the schools are going to be closed now. Um, you talked about a delay in realizing the um savings from those. And I'm I'm just wonder it's probably not the night, but if it's in the budget document to does it indicate when those savings start showing up? >> Sure. Um, I Okay. So, the budget document is not get put together yet. We have uh we're about done with it, all of the data that goes into it. And then there's a lot of other pieces that go into making it. Um but I anticipate we'll have quite a bit um of narrative as well as um tables
068and other data that will talk about what we just went through um and how that transition is going. So there is an immediate um savings as far as the consolidation of staff and there's more efficiency related to um how we are able to staff buildings but there also is expenses on top of that. So the true savings um won't be realized at least for probably there's still going to be spending that happens this summer. Like for example, we have to move um out of those buildings. We have to uh teachers are being reassigned to different uh schools or grade levels or whatever it may be. So there's costs related to that. Um and so it'll probably not be until 2728 until we recognize that full savings. And yes, I will document that in the budget
069just because it's very relevant to the current situation. >> Will there be some savings from it for next year though? Right. >> The savings is largely related to um the the staffing models between our basic school support, our classroom teachers, all of that. Um and being able to staff buildings more efficiently when you're running buildings. >> Okay. Okay. I just wanted to make sure that was clear because that was the whole basis of the decision. So, it's like the full savings is what you're asking about, not the Okay. Yeah. >> Yeah. >> Cool. >> Until until we don't have like the expenses related to the transition. >> Other questions, Sammy? >> Well, on I have two questions or requests on this topic. I think one saving or potentially a benefit is of a consolidation is
070retaining the class size, right? Because if we have not closed uh or consolidated two schools, class size growth would have been materialized probably next year. Right. >> Definitely. >> So that's one thing I'm hoping for. And I did elaborate. It's probably in an email to uh Ryan and Kim uh but I want to describe it briefly. If you could describe um sometime later the benefits and the drawbacks of uh cost-saving measures such as consolidation as one solution um furlows instructional time as another solution and also limitations of it given the uh executive order and I can think of a third option which is uh reduction force. I think these are the three legs of this tool of reductions that a school district may choose from. Uh one or a combination of uh consolidation uh reduction
071in in uh instructional time furls or reduction in forced layoffs. I'm not sure if there's a fourth one. Just a description of what are the um drawbacks on students and what are the benefits of them. So for us as a budget committee members and the community to see the picture that uh where we're headed given the consolidation and also to compare it with other solutions that they might be hearing from other districts. So that's the first request. >> I just have questions about that because I'm not sure how that relates to the budget. We've already consolidated so we're not we are not weighing those as um additional options. So I'm just thinking about the scope of what this committee does. Um, if if I'm off base there, that's okay. I just I don't know that
072I don't know what value that will bring to the discussion about the budget. I'm happy if people have if people have questions about that just as like a separate as a member of the community to to talk about that in a different forum, but I'm not sure how that would inform the budget will bring forward. >> It's very fair. I think the rationale behind it from a budgetary point of view is some folks will see other districts uh engaging in other solutions and we already engaged in a solution and this budget is working on an assumption of the solution we engaged in and for them to see the value that this one is more likely to deliver on our goals compared to the other ones if that makes sense but I totally understand if this
073is out of scope. So, um, what I what I'd like to say is I think those three, um, scenarios you gave are probably the three that are most, um, comprehensive. Um, reduction in school days um is no longer nor would we want to, but no longer a viable option based on the EO that came out this week, last week from the governor. Reduction in force is something that you have seen us do over the last three years. We cut 8 million, we cut three million, four million. we were on the verge of cutting 3 million on the verge of cutting another four million and so we've had many constituents come to these meetings asking for us to maintain programs. So you've experienced it that and lived through it. Um what we're at right now with
074the consolidation is we are looking at bringing programs back in this budget. As an example, elementary school students would have two days of PE, a day of music, a day of art with all with licensed teachers, a day of steam, as well as having our libraries reopen. So, in summary, one option is now off the table. The other option you've experienced with reductions and force and what you'll see is a budget that's brought forward with program enhancements rather than reductions. >> Awesome. Thank you. Did you have any I thought you said you had two. >> Yes. Thank you. So the second one is something we saw in the past especially in years of growth where there's additional funds or FTE and uh you shared in the budget document these are the investments that align with
075the strategic goals. I think it's also beneficial in a year we're retaining some FTEEs or retaining some programs or reviving some programs to uplift those in the budget documents and uh relate them to how they speak to the schoolboard goals just like what Ryan just mentioned. I think uh it would be really worthy to uplift those and say here are the schoolboard goals that speak to those >> that I'm planning to highlight that through the process. >> Wonderful. Thanks. >> Other questions? Just one second, Chris, because you got to ask mention the other ones. >> Okay, go ahead. >> I just want to piggy back on Sammy's. Um, it reminds me of like I think it was 2020 or 2021 when we first applied for student investment account money through the student success act. We
076had to fill out an application with data driven reasons why we're going to do stuff. And I think we picked like K3 class size for reading, um, access to music, access to art. And then at some point a few years later, we decided to move that funding away from those uh targeted goals to other things. And we don't itemize our SSA student investment account funding in our budget or we haven't in the previous years. And I just checked and so you know like Bend they they show what FTEES are being used for that you know SIA money. Um McMinnville combines it into like a total of at least the 1,00 2,000 3,000 4,000 line items. Um, Phomoth actually does a full full, you know, uh, audit of every single dollar spent into every single >>
077We do the same thing. >> Yeah. Yes. You can look online. You can look online. You have to report it. It's It's an OD requirement. >> What part of the budget is it in? >> It's not in the budget. It's in a special What's in the What's the It is in the budget, too. Sorry. It's in the budget, too. >> Um, because that's a that's also a requirement for all of that to be there. Um, it's also we also include the I would say it's not really a standalone item anymore because it's now shifted from OD to being student investment account to integrated guidance which includes um most a layer of state grants. So the early literacy uh SIA uh high school success and um so that's all combined but we do report on it.
078>> Yeah, >> I may have made a mistake. I did a control F, you know, on the budget 3 280 page document and I tried to find student investment account just like these other, you know, districts show it and I couldn't find it listed like that in an itemized layout. So, I guess if it if it's going to be in there this year, fantastic. I would just I would love personally to see how we're spending that 6.7 million because it's so much money that I feel could really help the K3 reading and and these these programs that we really care about. And I and I I think when we talked a couple years ago, we weren't using it for those things. So, I would just I would love to see the that itemization in the
079budget. I think it would really help again with the transparency and the communication with the community of knowing where that's going in in a very clear way that we're that we're proud of. >> Sure. >> I'm I'm proud of what we do with it and because I've been budgeting it for the last several years and you can look online and see narrative of how it's been used. You can see budget items and FTE and programs that it's paid for. So, anyone can find that online. Chris, I was going to let you know that they also do reports on it and it and they change the if they change the name, it's going to change it in our docs, too, because >> So, I'm so sorry. I've I've tried to find most documents on the >>
080I would suggest since this is like the orientation, I understand you want it in there, but if it already exists that maybe um you can email Melissa and >> I was just going to say it might be valuable for all of us to have that. So, if you could share it with the group or if it's >> Okay, perfect. I was just to say if you can email her and request it for us that would be helpful instead of um doing it right now but and just a reminder when the chair is facilitating to help move the conversation along if I'm talking it's helpful to let me finish what I'm saying it would be appreciated. Um, any other comments or questions before I ask a couple of mine? Okay. Um, so the question I had
081was on when you're talking about the um the decline the 1.4% decline of birth rates way back there. >> Okay. >> See, I wrote them in order. >> Yep. I just needed context for what we were talking about. >> Oh, you're like, which percent? >> Which percent? the um that decline and you said that the migration in will have to increase to keep up with that. However, I've been seeing online that the migration into Oregon is um has been trending lower than migration out of Oregon for population. Right. So, I don't um how I don't know how that would um I don't think that would be realistic for us to rely on. Right. >> No. And um so in the report that was published by the state economic uh department they were not suggesting um
082that migration is going to solve the problem. It was saying that because of the different in our uh the changes in our age and the demographics of our population now um the only thing that may impact that is migration which couldn't impact it negatively. That 1.4 could go to 2.3 you know um if we have more people moving out of the state. So it would have to be a positive net change in migration is what they're suggesting. um that would uh counteract that that change. >> Thanks for clarifying that. I was like, I don't think that's reliable, but um just wanted to make sure that >> yes, I wasn't suggesting that we were going to see that based on what I read in the report. That was just um I I found it to be
083interesting like about the aging demographics and like that >> how that all happens. >> Okay. Um and then um when you had the student numbers that chart up in the beginning too with the FT or not FT with the student enrollment >> estimates for all the schools I wanted to make sure it was clear to everybody on the committee and everybody watching online that that's an estimate >> because you get the numbers and you're I know you're going to go over that but just so in case folks see that chart and think that's exactly how many students are going to be in those um schools that we don't get that until October. Correct. The actual >> Yeah. Okay. So, and that again if um if you are interested in enrollment um methodologies or the specifics
084behind that I have narrative and um more data to to talk about that in the financial report that's on our website. >> Okay. And then the last thing I wanted to bring us back to was the PERS numbers. Um >> I um I was pretty alarmed by seeing that 27.74% in a couple years. And so >> I like thinking farther than next year. Like I know you're already thinking farther than next year and stuff like that. And that's going to be the start of bienium, right? And so which are our estimate. We have to approve a budget without knowing the dollars that year. Um and so um I'm curious if we're going to have conversations throughout this process of some of those strategies, how our decisions with this budget will help impact the strategies for
085the um 27 um 28 budget. Are we gonna discuss that all at all or are we gonna wait till two years? >> Well, it's uh it's in the long range plan that I presented to you in January, those assumptions around those growing pers rates. At the time, I didn't have those exact advisory rates, but I had a pretty good idea. I would say is um you could go down a whole rabbit hole on uh the um people who work at PERS and how their actuarials their methodology uh they're generally really conservative and um under project earnings on on the funds. And so what we generally see is these advisory rates that are high higher than what we get. Um, but if we start planning with those, we know that then we end up with a
086little wiggle when we actually get there. Um, so that's all part of the plan. I would say just as the scope of the budget committee, um, it is relevant to this specific budget. So we're not talking about, um, long term budgeting here. in the budget document, there will be projections for um three years out on several different tables to show how this all plays out down the road. Um and so it's like a yes and a no answer on that. >> That's fine. It's just one of those things. Same with how I started asking about birth rates as soon as I got on the board like six years ago. that topic. I have gotten more into it as I've gotten deeper into this work. >> And um so that's another one because I for folk
087that don't know why we have so much PERS is um when the state shifted that to employers like state employers and did not help with finances to do so. So that makes it really difficult for any state a agency or state funded budget. Um, the other thing that I was going to mention is I didn't see a whole lot of um in our presentation this evening about federal impacts. Are we going to talk about that during the next um >> thing at all or any projected federal I know it's tough because >> it's really hard. the federal budget year starts October 1st and so we it's like if you want to say that >> guessing on some of these revenues now um for the state and local um things is is difficult. The the federal
088level is even more so because we're even farther out from them adopting and we've also seen um several government shutdowns and issues with funding things. Um the funding what I can tell you just as a preliminary is I looked at our outside of general fund we don't have much um federal funds in general fund um and so I looked just in our special revenues fund and last year I think we budgeted um around 5.3 million. I'm not sure where our actual award I didn't I didn't have time to look at where we're actually at on awarded dollars, but we budget around 5.3. This year's federal revenue budget and special revenues will be around 3.7. So, it's a significant they're talking about flat funding, but it's like it's flat funding and it's still tied to a
089per student dollar amount and um also different depending on what the grant is, different demographics. um the change in how we um deal with the the poverty data um and how they're requiring us to change in how we certify kids and who qualifies um under those certifications significantly impacts funds because less less uh the bar has moved higher to qualify for um like specific around the poverty um data. So yeah, we're it's it's significant and most of that is outside of the general fund. >> I understand that part. The part I'm also concerned about is Medicaid because people don't know how much that um funds public education nationwide >> through reimbursements and also the SNAP um impacts. And so those it's more than just education funding per se. Yes. It's all of these other federal
090programs that have been impacted that are also impacting it. All trickles down to the state to the local level. And so those ones like not being able to do reimbursements as people are removed from Medicaid and SNAP for some things. Um for example, were the things that I was thinking about mostly based on the trip that we um that I had that scholarship for into DC. Yeah. and hearing about how much I did had no idea how much of Medicaid funds public education. It's wild. >> We also receive um funds from USDA specific to like our nutrition program and so those we've already seen a decline. So, the decline in funding from USDA is going to take away funds from that meal reimbursement program, which already the meal we have to supplement our nutrition fund
091um by a at least a million dollars usually because the reimbursements that come in already don't pay for it. Um, and it's supposed to, but if you can, I mean, feeding a kid breakfast for like a $1.19 is not um, realistic at this point. And so, some of those those pieces, um, I think that as far as this budget cycle, um, the federal funding is always on on, uh, the list to watch. Um, I think right now we have a plan for for how to deal with the uh reductions that we're expecting um in the current this upcoming budget. I think it'll be much more telling after probably um the primaries and then for the ne next budget cycle because then at that point the state legislature is going to be deciding the funding level
092for a state school fund for the next bianium and depending on what happens at the federal level. I think they will be it will impact how um conservative they are with that allocation and then we're also going to have to be battling the narrative around well there's less kids in the state of Oregon you don't need as much money and I would say maybe that would be true if we were ever funded fully to begin with but when we're already working from behind that argument just doesn't work for me. >> Okay. And we're also the costs go up way more fast than everything else. >> Okay. Thank you. I was just wondering if we're going to have any federal info like especially those key programs that >> there will be federal um information like information
093on those programs. It's it's really loose and we generally have to adjust our spending >> um in the fall to actually fit what our awards are. >> Okay. Thank you. >> And as you said like even the reimbursement that's not federal but it's like years later. >> Correct. Yeah. >> Yeah. It's it's all >> connected. Even if like the source that we're booking it through and how it shows up in the budget is state or local, there's federal trends. Like for example, um you know, I don't know how our like the um assessed value of our properties in Benton County. I don't the the trends on that are we've stayed pretty consistent throughout the last few decades, but when you every time when there's um big economic issues I mean people aren't buying houses right
094now like you can't get um uh like the mortgage rates and all of those pieces to do that like and builders the cost of building based on tariffs all of those pieces are going to affect the assessed value um of the property in our jurisdiction. And so then that trickles down to how does that impact impact the local option levy? Um and the state school fund, how much local revenue goes into the state school fund. It's all tied together. Um and it's like you can't put your finger on one thing that um completely changes or not. Yeah. >> Thank you. Any final questions from budget committee? Go ahead, Sammy. So Lauren, uh, a legislature not from this area said we did hit the QM briefly, the quality education model level briefly. Uh, I Yeah, exactly.
095I believe it that might be uh informed or I'll be I'll be honest because he's a friend misinformed by a report that may have miscalculated that the QEM can be measured by considering the student success act funds uh supplementing the general fund. So, could you comment on this? Uh, how have we ever touched the QEM or fulfilled the QEM in our funds? And how does that relate to our general fund and student success act funds? >> Well, I think to answer that question is just straight opinion. So, I'm not sure if I answer that truly with like factual data. Um but I think based on uh if you talk to people who are actually doing the work um and who are operating school districts I would and and looking at the metrics related to student
096outcomes. Um I would say no. We've never been funded at QAM. um the the uh accounts that you mentioned or the grants you mentioned the student success act um specifically that helps um with the funding but that's also it's volatile and it's contingent upon um >> different revenues um yeah business activity in our state. It's it's based on our structure. So, if we can't count on funds consistently um in order to keep up with all of the different pieces that we um navigate, especially I mean and and it's really expensive because 80% of our staff um or 80% of our budget is staff. And saying that, I I'm not suggesting that we don't pay our staff at the level we pay them. Like, we have really good staff and we want to recognize that work
097and and compensate them as such. And that's extremely difficult in the parameters that were given. Ryan has opinions. >> Go ahead, Ryan. And then Chris. >> Um, when we have a historic budget um for schools in Oregon, um, which happens every two years because we get more than we had two years before. That's a political statement that you just shared a political statement as well. >> Thank you. >> And but for the record, that's not my opinion. I just want to elevate the conversation. >> I understand that. I just want to take a minute to thank you for all this amazing work that you have done. I know that you have spent an incredible amount of time, but also just the fact that I mean you're so knowledgeable about all of this and so responsible
098about it all. Um but you also presented in a way that for us um non money people don't work a lot with numbers like you do and all the scope that you do that um you make it very simple for us to understand or at least easy to ask you questions about. So I appreciate all the work and and how you presented this to us tonight >> and your team as well. Okay, one more comment. Go ahead. >> Just a quick question because I I agree with Chris. Your knowledge on this is more than most of us will ever, you know, learn and forget. So, do you view the national and state funding, you know, discrepancies and and and lack of just meeting the QEM as as a bigger threat or it, you know, there's
099some argument from the community that we're losing more and more students that are in our town. you know, we may have gone from like a 90 plus percent participation to now like 75 or less. Is that also a big threat to our budget going forward? Just in a relative sense from your perspective, >> are you saying uh students leaving in private schools? Is that what you're saying? >> Loss of participation percentage from the Yes, exactly. >> I I don't believe that that's um causing long-term impacts to our budget. No. >> You don't think getting five or 10% back would help? I think the data that that we receive that comes specifically from the schools um that are in our district. I'm specifically talking about uh transfers to FHI. Um I'm talking about um uh the
100other private schools that are in our district. Um I don't believe that that actual data fits the narrative that's being shared in the community. Um and I am getting my information directly from their finance officials, their superintendent, their executive directors. Um so no, I do think that um that there is a issue of cost of living in Corvalis. Um and I have experienced that personally as well as um I know that that's a big factor for many of our staff. we actually have a large number of staff compared to other districts that don't live in Corvalis and commute in. Um, and that has a lot to do with the cost and the availability of housing. Um, and so I think I think pointing the finger at one um, specific narrative that I don't believe is
101actually based in that much uh, true factual data um, is the reason why we've had the budget issues that we've had. If if that was true, um then then that same scenario should be playing out at about 20 other districts that on a weekly basis um are making the same decisions that we are. And it's that's not it in my opinion. >> And um I know you've seen the budget presentations before, Chris, because um you've been to meetings in the past, which is why you're serving now. Um, and you'll see then we'll see the numbers too of the students that are transferred out and just like we do every year. So that might be a good question to come back to and knowing where Lauren's getting the information she does shared directly. So that's I
102would keep an eye on those numbers too when we have that um during our budget presentation. Yeah. Cool. Okay. I have a couple reminders before we close the meeting for everyone. Um at our next meeting, it is Thursday, May 14th. Um at which time the committee will be electing a committee chair and vice chair. So after we do that, I will not be chairing the meeting. Um that person will be. And um we will receive the superintendent's budget message. We will also be receiving public testimony. We'll be deliberating. Um and if we have time, we could approve the budget for 2627, the tax rate and tax amount. And by approve that means approve to present to the board to vote on to officially approve. And um if we do not have time we will have
103a meeting after that um which often happens. So I just wanted to pre-warn everybody about that second meeting being a possibility. Um, I do have one request just um if we can I don't know if we've done this before, but um just so everybody's on the same page about how meetings run because this uh the school district and the board including our budget committee follows Robert's rules. That way we can understand um collectively how that happens. Um and following the board, whoever's chairing the meeting is the one who usually calls on folk. I was having Lauren do that because she was doing the presentation, but um that way folk aren't unmuting random times and stuff like that. I just want to make sure we're all on the same page. Do we have anything, Kim, that
104we can um send out to the budget committee on Robert's how we run the meetings? Oh, it's right in front of us. >> Nice new place, Mat. >> I just didn't flip it over. Sorry. >> So, I would um recommend that we take a look at that too for the next one. Thanks. >> One request just really quickly. If you are a person who would like paper and you want your budget document printed and you want to come pick it up, can you just do a little hand raise so I can get a count? >> I know I know it's a lot of paper and money that some of us read them better on paper. So, >> okay. >> Thank you for offering that, Lauren. I was gonna ask but I didn't want to be
105the only one asking and look at I should >> also to clarify um the the budget document will come out um do you remember the date Kim? The 8th Friday the 8th. Um and so Kim will contact you that day when it's ready to pick up here at the district office if you're a paper copy. At the time when it's released, I will send an email that has a link to the PDF that's on our website, so you like have it immediately, but your paper copy will be here for pickup until >> 3:30. >> Um, if if you want a paper copy, if you don't mind emailing me, I would appreciate it so that I because I saw hands, but I didn't see who all did it. Okay. >> Um, and then I'll contact you.
106>> Yes. Thank you. >> Okay. Um, and that's the last item on the agenda. Oh, sorry. Go ahead, Trace. I I don't think we talked about how we should submit questions for the Well, once we get the budget document and we look through it and we have questions, can we send those in advance? Should we email them? Do you want us just to save them until the meeting? >> What would be that? >> What would you prefer, Lauren? >> The the questions that you have in between when it's released and when we have the meeting on that Thursday need to be reserved for that budget meeting. um that's the point in which we can open it up for you to submit your questions in writing via email. Um but between that meeting that is on
107a Thursday and then the next is a Wednesday, you can be emailing me questions. Um and then I will be producing answers for you every 12 to 24 hours. >> Okay. Just so it's super clear for everybody on the budget committee. If you have questions once you get the document, thank you for asking that, Theres. Um, once you get the budget document, do not email them to Lauren. Write them down. Correct. And save them for the public meeting and then if you have further questions after we have that public conversation, you can email questions. >> But not until then. >> Thank you. >> Yeah. Just so it's reiterated. Thanks. >> Thanks. >> Okay. Now, we can go ahead and adjourn at 9:06 p.m. Thanks everyone.