001We're live and at 6 pm we're starting. Is that good enough? >> Wow, that is good enough. So um this is a board work session uh about budget. It was requested by the board before the board and for anyone that would like to join on the budget committee. Thank you for coming. So I'm going to turn the floor over to this. All right. Good evening. We have a template. This goes to >> All right. So, budget 101. We have a template there for any note takingaking. Uh Karen and I are just gonna go back and forth on this one. So, the essential question. So, I go back into my teacher mode. This is our essential question for the evening is why is Sheridan School District making budget cuts? And then we have the four targets.
002understanding our financial situation, learning where the funding comes from, understanding the state school fund, and with that comes the all the formulas that drive u how much we receive in the general fund, and then how this all connects to funding decisions. So, you notice on your template, you've got each of those areas. You can just jot down whatever notes you want. And then we're going to when we wrap up, you're going to hopefully be able to write out if a community member asks you why Sheridan School District is making budget cuts. What would you tell them? Are you are you able to verbalize, hey, this is what's going on with the district right now? >> Let's see how much you have. All right. So, here is our uh fiscal reality. You want to walk us
003through those three um areas, the two areas and then the equals and where why we're at 400,000. So, the school fund reduction and that's based on our declining enrollment. And so from um the amount that we got last year to the amount we're estimating to get next year is going to be down about $300,000. And so then that just shows basically per student how much they're waiting I guess and then that just leads to our budget gap and we like for any income balance to be at least a million dollars and the budget this year does not contain that amount. So that's our goal try and keep that back up. The budget presented um at our first budget committee meeting has ending fund balance at 600,000. So we do have a gap of 400,000 and
004we are continuing to make cuts. Um we are going into looking at uh staffing to to rightsize because the drop of enrollment. We have begun to look at programs. Programs being even okay within facility management, within special education, um within how we're offering our electives, what our class sizes are. Um just really digging into that to see what we can do and where we can make those cuts. And then you see down at the bottom there, um the decline in our enrollment. And when we first started this, it wasn't so much this the state not providing enough. It was that we had dropped and it is is getting to that time we absolutely have to adjust. >> We're now 98 students. Is that correct? >> It is a lot. >> And but we're excited that
005kindergarten has um almost 30 kids registered. There's like 20 or 30 pre-registered. So that's usually about half of what we usually get. So we hopeful for August that we'll get a kindergarten enrollment back up >> and then this is behind a year. So it'll take a little while getting so the state school is is behind. >> All right. And then our cost pressure. So, PERS the public employees retirement system uh the district contributes for um employees into this system 6%. >> More than 6%. >> Okay, correct me and keep going. Yes, we um have to pay about 24% for um employees who are in the low not tier the officer group and then about 27% for employees who are tiered and that's just the formula that cruise has and they send out the rates um
006every two years. So this year um for 26 27 is the same rate. So 2728 they're going to be adjustable again. >> And this is the talk of going into the next bianium. So right now we're finishing up year one of of the bianium. But that next bianium it's anticipated that hers costs are are going to start to skyrocket. And this has been they've been talking about this for a while. Um but also because it's a very very complicated formula and I know Karen spends lots of time in webinars to learn and understand the first system and it's also one of those things it's um I guess it's a trickle up effect. It's like so the staff get you know a 1% raise or whatever then our cruise cost will automatically go up by 1%
007because it's based on salary and stuff. So, it's just one of those things that sneaks up. >> And the tier one um employees, which I was, and then I retired from first, um are very costly and years and years and years ago, the state changed up and did additional tiers. I think when Pat started, which was the mid 90s, he might be one of the last of that group of the tier ones. So, they will age out and that will help. Um, some districts offer entire retirement incentives and we've thought about that. We really don't have anyone that close. You've got to have your 30 years in. All right. And then utilities and transportation that continues to go up. Um, if you live in Sheridan, uh, you know that utilities uh, continue to go up.
008Uh, Karen and I have also talked about that. um our transportation costs. We have um a little bit about that on another slide, but that is another cost that goes up each year. And then um our grants just fluctuate based on enrollment. So we have to anticipate the change in our grant amounts as well. We'll go into that a little bit later. >> And the other thing I was thinking about is um the enrollment also affects like our ESD funding. So the amount we get from resolution funds and the amount we get the flow through amount from them is also that their funding is part of that bas gets a certain amount per district and then we get a venue of what we're going to purchase with a certain amount. That is what is referred
009to as resolution dollars. So oftent time what happens every spring is I go to a meeting and I can literally pick from a menu of all the services we need. It's things like the einance system that Karen uses. We have to pay for that. We have to pay for a courier. We get tech support. Um we have all of our technology Wi-Fi. Um all of that is through the ESD. Special education services are through the ESD. And by then our resolution money is done. By the time I get through infrastructure and special education, cost and technology uh then we are looking at contracting and that has to come from the general fund. So if we end up having to contract for a service that's going to come out of that general fund. Does that make
010sense? You start with resolution. You spend your resolution because that's coming through the state and then you go to the having to contract All right. And then just a review of what things cost. Uh this is average average teacher salary with with benefits. So that's with the PERS cost. That's with payroll costs. Um and then classified employees. Um what it costs if we close school on a school day. And then um one classroom, one teacher. And so we've been taking a look at just our class sizes and increasing our class sizes as we adjust to our drop in enrollment. Okay. Is it making sense so far? Okay. Revenue sources, state school fund, which is the complicated um formula that Karen's going to walk us through these reports that she gets all year. our state grants
011and then our federal grants. Okay. State school fund overview. This is state and local taxes. So Karen, you got to walk us through this and what this tells you every time you get one of them. And what did you say at budget committee? You've done 11 of them this year. Each one is slightly different with the changes. So, we have two versions of this. And the first one is dated um March 3rd, 2025. And this is the one that I built the budget on because this comes in March like when I do a budget and so it's like this is the best guess. And um it basically what I do is I have a report and it's just called the estimate of um revenue and like ADM or something like that. So I go in
012and I just say okay this is how much I think we're going to get from a local property taxes, how much I think we'll get for common school fund, the county school fund. And then that just say says, okay, this is how much revenue I think we're going to get from other sources. And then they do the experience adjustment and this is based on we of course do several um reports to OD and so they figure out that state average thing. The transportation grant is just basically um when they go to do the reconciliation they will go in and they'll fill out this based on our actual expenditures and then we are reimbursed at 70%. So of our reimburseable expenses like when um kids go on like a like a non-learning field trip those expenses
013are not reimburseable. So you know the district just pays for those but most everything else is reimburseable. So we'll get part of that added back into our state school. >> So is non-learning trip like a baseball game? Um I don't know. I'm thinking about like if they go like a fun Friday swim to Evergreen or something like that, but yeah, pretty much. And then to mention um Karen mentioned the experience adjustment. You see the district average teacher experience. And Karen jokingly when we made a hire of someone that had 18 years of experience, stop hiring expensive teachers because the the state has to take that into account. But then it's also playing catchup. So because these are these are a year behind in the numbers. So this is Oregon's formula that they adjust into what's
014called weights for students. And um the weights have to do if the student is in special education, if the student is in um qualifies as an emerging bilingual student and um is receiving English language development services. So you have different weights, but then you also have the teacher experience and that comes into this formula of what Sheridan School District will get. And then we come down to the all important extended ADMW. >> So average daily membership weight is >> and if you look on the second page of that report that there is a breakout of what they say our and since this one is from March the first one that we get with this estimate it's they just lump everybody together. um all prep and district are just put up um in the district's blog
015and then eventually it's broken out. But this just shows that the ADMR is what we consider enrollment. Usually they just call it beds and seats and then they will go through and like if we have we have five students in the Yale program so we get a little bit extra waiting for them. Um, so it just goes basically down on through and you know these I'll get a new estimate and maybe our students in poverty will change or it's just kind of the reports that we submit to OD all flow into this. the um 150 IEP students capped at 11% of district. That was something that the state legislature a year ago tried to push through and well, I should say KOSA, which is our state um administrative advocacy group. They wanted the cap removed
016because the superintendent were saying that we need more money to provide services for special education. Uh we have more students in need. the programs where you would have a student go and get the specially designed instruction elsewhere um don't exist like they used to years ago. And so we are expected to provide for students. And if we do have a student that has to go out of district um it can cost the district as much as 70,000 per student. So it gets to be very very expensive. Um but the cap is only 11%. So any students above 11% we're not getting funding for those and that's just it's a problem with our state school fund and how it's designed. Um with the drop of enrollment at the high school um have uh took a look
017at um the case load of the special education teachers and the high school's at 22% special education now students in special education which is very very high. are, you know, districtwide we're we're around 19%. >> Do you know what the districts around us are just like in comparison? >> I don't, but that would be really good to find out. >> And what Missy is um what we're talking about too is um we're not identifying students. They're coming to us already identified. And in fact, um, when she does her board report, she's going to talk about that and how many students we've identified. Um, because we were flagged for the jump in the number of our special education students between 24 25 and 2526. Um, it's um, it's referred to as being disproportionate >> compared to
018non. And so we we get to explain it, but we have the numbers to show that students moved in with the designation. And there's there's really nothing we can do >> until we have the evidence to take them off those services. >> So we could probably look at the estimates for like AMD and Miami and see they got in that >> if you know where to find it on the Oregon Department of website you can find these for any district in the state. And in fact, when I first had my my budget meeting as an administrator, my budget class as administrator many many years ago, that's what we did is we randomly pulled this and then learned from it of seeing these reports. So, um there's a thing called whole harmless or the AMW. So
019they look at our two years. If the prior year's ADMW is higher, they will let us use that um ADMW. They call that the extended ADMW. So um you can see that 2526 we got 125 and 2425 was 1347. So they are funding us at a higher rate which is great until they do the reconciliation and then we've gotten you know all of our money based on this amount that it's actually down here. So it's kind of a plus and minus game. So then they take all these numbers and they put them through some calculations. And um if you look at under the general purpose grant and it says then multiply blah blah and then it says then by the funding ratio that 2.474 and that's basically what they're saying is that it's 2.4% 4%
020of the entire whatever state school fund is what we get. But this thing changes all the time. Um I think right now the ones that I was looking at earlier it was at like 2.3 >> anyway. So that changes. And then the total formula revenue, you take the general purpose grant you just calculated and then you add from the transportation grant up above your um eligible expenditures. And then you go ahead and then you subtract the local revenue that you expect you're going to get and that gives you your state's full amount. then of that. So then of course we do flow through funds for our charter school and they get a per student rate based on that 11 913 that also changes all the time. >> And what percentage do we keep back from?
021Um, we keep 5% of high school, I think, and then we're right now we're getting 4% of the other part of it. >> Does it Oh, I'm sorry. 14 14% >> 14%. >> And does it cancel out when we figure out our costs? >> Well, that's going to change every year because they're going to get more based on the contract. >> Negotiated the last year. So it becomes better for us year after year. >> No, worse. >> Yeah. >> But because it also it has um but they're getting less services from us. >> Correct. >> Yes. Because we we are letting not letting them they are doing their own bed services. So that comes into it as well. >> But um it's we're still we're still covering some of our expenses. I mean, we're still
022getting money back for, you know, overhead of us. >> It would be a significant loss of the budget if we ended the charter. >> Yeah. >> And at one time it was going to be like around 300,000. >> It benefits our students in our district to have the charters where some we'd have to figure out that calculation. I know when we handed off special education services, it was a hit because it it was going to cost us, but at the same time, we're weighing out my time, this is time, um, and what was going on. So, um, we can bring to the board then how much we are are keeping. years ago when charter started, it used to be just viewed as a cash cow for districts, >> especially the virtual one because you do
023have the formula and you keep the overhead, >> right? >> Um, we join with them um on an agreement with Oregon School Board for policy. Um, they can use our HR system, but as far as people time, I'm an hour a month of that. Missy checks in occasionally. Aaron provides some support for state testing and then Karen's got the bulk of it. >> So we don't like we still keep quite a bit of overhead and it's I mean it would basically be a wash because if we didn't have a charter we wouldn't have their ADM added into ours. You know how many they have we um an amount based on that. >> Right. >> So I mean yeah we the sum for our overhead. Yeah, but that's a that's a good point. You can bring
024that information back of what that is. I know it is more for the K um the K5 that percent that we keep. >> Yeah. So >> yeah, >> I know before Karen came um when we were going through issues with the um the Japanese school >> and somebody had voiced the question of well what would happen if Sheridan didn't have any charters and at that time Deian our business manager said well it would be a loss of about 300,000 to our revenue >> because of that overhead but we can check that now. >> Yeah. >> And see where we're at numbers. Yeah. Yeah, definitely. And I remember, you know, Scott Berg when he was on the negotiation team for the charter, he did say to me, he's like, you know, it'd be nice if we
025could refer to this as something else other than a cash cow >> because it's like we do keep money from it from being the host district, >> right? And I know it's a small percentage. I just want to make sure that we're not ever going backwards in that deal as well. >> Very consciously aware. Yeah, definitely. Um that formula that Karen had, the ratio, the 2.47 blah blah blah blah. Um that is what um the budget committee had referred to as the current service level. This was another part that um KOSA tried to advocate for at the state level to change the ratio because a couple of years ago when the cost of everything just started going up um business managers across the state their calculations was that this ratio needs to be more at
02611%. And that was talked about at all my state superintendent meetings throughout the year and they could not get the the state to budge on that. So the formula is still the same but that is that is what they say is the ratio yeartoyear that you should be able to keep all your services the same. >> Yep. And it's not accurate. So that's another challenge. So, real quick, go ahead. >> Um, so if you look at the other, excuse me, the estimate that's um dated May 1st, you can see the differences. Um, so I can go in and like in October or so, I can go in and if I realize, okay, I know we're going to get um more in local tax revenue. I know I know what the public school fund payment's going
027to be. Then I can go and update these so they're more accurate. Um so they went in and cleaned up a bunch of our data that we've been submitting. And so I had to go in and say, "Look what you did to our teacher experience." But it's correct now. So >> um it went way down. Um, and then you can also see how they they had chewed up 2425 ADMW and so that's was after the reconciliation and that's what they're saying that's going to stay at. Um, and then we submit ADM reports every quarter and so I can go in and look at what we say we've reported. And so based on that, I can kind of look and see, okay, this is really close to what I think we have or is this like
028way far away? So I try to keep an eye on that. Um, and then once again, you can see how the vending ratio has changed a little bit. And then, um, I also our transportation costs have gone down a little bit, so I went and changed it. And then, oh my gosh, we started getting our fuel bills and stuff. So, that's going to be um so then you can see they did all the calculations and so our state school fund revenue has gone down a little bit between what I budgeted on and what we're actually getting. So, we're going to have a negative May adjustment. about that. >> Okay. >> So, you're talking about the 11,411 >> total formula per extended um average daily membership weighted. >> The difference >> in March was 11,411. >>
029The one in May was 11,243. >> Yeah. And if you Yeah. If you look at the um right above it >> Oh, yeah. The 13,000. We did think we were going to get 13 27 whatever, but now I'm only going to get 138. >> 13 million. >> Um, >> and that's the change in just from March 3rd to May 1st. >> And when does the next release come out? >> Um, this this was March of 2025. >> Oh. Oh. Oh, >> yeah. >> Okay. Got it. A year ago. >> Yeah. >> Sorry, I was thinking March 26. This is what we did that budget based on and this is what we ended up with. But then you can also see how the chart school rate went down a lot as well. So that means we
030weren't willing to drew as much money to the charter. And then um the other thing I wanted to say about the PW is this is based on um the time kids are actually in class. And so if a student is only there, you know, n10 of the time, they're not weighted at 1.0. It'll be like a 0.9 or whatever. So that's why we can end up with a 32. not just pointing to a kid. So I thought it was interesting that um the charter schools enrollment is going down as well. Um so anyway, right now um our extended ADM is 1366 and looking at what they had posted um it next year or 25 26 it's going to be much lower than that. So, we'll probably be it's gonna be Yeah, we're gonna lose a
031lot going from 1366 to 125 or whatever the budget on. So, I don't know. It's just depressing >> questions. State school fun >> and I know it is super confusing. And then this isn't even talking about the high cost disability grant that goes into this and the small high school direction that goes into this. And that's why I just have to say our budget plan. It's all fluid. It just, you know, even guitar school is gonna affect us. Yeah. Is this something we can like share with the community? Not the numbers, but like there's if people move for whatever reason we understand, but also like what can you do to help us? Like movement is something that really impacts our numbers. But >> a lot of lessons in your district, right? But like help us
032out because the reality is not to keep the number stable year after year. we're going to have to, you know, >> yeah, >> lose great features or AI or >> um right because um that or you know who knows what you know joining other districts we're already co-oping with sports right and so if that >> right looking at little >> yeah I know McMinnville has had a significant drop enment and they are are starting to make cuts. Um >> Kaiser >> Salem Kaiser is a huge drop in enrollment. um public schools really >> it is it is across the state and in Jan I think it was January Pat did a board presentation where he looked at the class of 2026 and how many kids came in as freshmen and how many are still here
033and I think it was like maybe I want to say 34 32 students that had left because he did an analysis of where did they go and several just left the state several moved out of the region um three graduated early. So, you just you have this mobility and then you have you have people not staying in this community and I don't also know if housing is a problem for people to come into the community. Um, so it's just it's definitely something that drop in enrollment. Our long range facility plan had an analysis on enrollment done and it it looked out to 2030 and it was a steady decline. It feels to me like we just dropped in a year and a half. >> This was this was not the steady decline. >> Well, if
034you remember coming out of CO, many districts around us saw huge cuts then, but we didn't. We held strongly until last year and now >> we're right where they are, >> right? We just didn't have a steady decline. >> Yeah. And kindergarten, this year's kindergarten was was low across the region. So, um, and you just get those bubbles of kids that go through. We still have a couple that are closer to 60. Some are more like 45. We were just looking at the at the trends and these groups going through. Any questions on the state school fund report? This is just the general fund >> fund 100 section in your budget book. >> Pretty much out of our control is what it is. >> Yes. Yes. We we just got to make sure that we
035have accurate reported to the state. Um we Karen's done a great job of um creating the spreadsheet of all the state reports we we have to do, who's assigned them, what's the window you submit the report, you have a time to correct any errors, that window of opportunity, and just making sure that our our data is clean. Any other questions or thoughts? >> The next year. >> That was based on >> or is it going to be the 906? They'll add that much. And then I know one year I was as I was looking back things. One year they did a thing where um like if the it wasn't just okay 2425 it was like oh if the charter school was higher in this year but the district was higher in this year then they
036took those numbers and added them together which was I mean in my mind I'm like you're doing it wrong. So, I was really confused for a little while until I fig it's just >> I was I've been told um from superintendents that have come in from out of state that Oregon has one of the most complicated school finance systems in comparison to other states because of this formula. It's supposed to it's supposed to provide for the differences. So, like in Eastern Oregon, if you have students that are on a bus for a really long time and you have a lot, there's a formula to have that. If you have um a really really uh experienced teaching staff, there's the formula to to help with that and so on and so forth. But it is really
037complicated and then also commission changes. >> So, that they put out for the 2627 estimate was 1,226 Any other questions before we go on to grants? All right. For I think most of this will this will be a review. Um we have state grants and we have federal grants. We have high school success. High school success needs to be spent in three buckets. See if I can remember all these. Um it is CTE, dropout prevention and college readiness. Those are the three areas that we are allowed to spend money for high school success. Early literacy is K um two instruction and the student investment account. Uh those buckets are um student mental health, class size reduction, and I just had oh um uh world experiences, so enrichment kinds of things. So STEM classes, um technology
038classes, things like that. So those are the three areas. Um and then we just we were just awarded 120,000 for summer learning. So, we get to offer summer learning programs for the next three summers. Um, and so high school success and student investment account, I I can kind of there's times where we can split a position between the two. That really helps. The student investment account is close to 800,000. Um, it funds um six positions right now. And then high school success uh supports a little bit of CTE uh CTE teacher and then our AVID contract and um that's about it for high school success and it's not very much and we're anticipating high school success is going to go down because of the drop in enrollment of our high school. Uh the federal grants
039I manage the title grants. So title one A, title 2A. Oh, there should also be a 4A in there. One out. Um and the title three, title one A is uh your your G. It's your big one. It is um SCSK8 is our title school. And what I'm able to do at the beginning in August is I can combine title 1A, title 4 A, and title 2A into one grant. I can I can braid them. That gives us more money and it comes reading intervention primarily. We can also do supplemental curriculum. Uh we pay for a little bit of our um McKenna bento liaison. Um, we can pay for family and family engagement activities at a title, but all the funds cannot be at the high school. It have to only be at check for
040the title, right? The way they are structured. Uh, the Cox grant we were just awarded um last fall. That's 500,000. Um, it is connected with a matching grant of our awesome grant. So, we're we're doing that in uh sync with our bond projects. And then IDEIDA, which I thankfully do not manage. Karen and manage that one. Um that is our special education grant and and funds some positions that we have. >> Is the CP one renewable? >> I don't think so. >> One and done. >> Yeah, it's a one and done. Yep. Title um title grants are every year. Um there's been um a slight drop in title one a going for next year. We are projected only to be about 3,000 less than this year which I was really happy to see. Um so
041we keep you know the state will send us all right here's your projected amount and then you can start planning and then all of these take we submit plans we have to do quarterly reports we have to do fiscal reports. um we are held accountable for um uh making sure that with our state grants we are hitting all the right pockets for those funds. Question about grants question. What what makes us a title school or school district? >> It's a good question. Are we anywhere in danger of losing that? >> No. And there's different formulas for how they calculate poverty. It has to do with the poverty poverty formula. >> I have seen reports from the state that have opener chaplain as high as 83%. And it used to be called being on free reduced
042lunch. >> In years ago when I was an elementary principal, families had to fill out every year a form. And that form went into what is your free reduced lunch count? And that's the formula. Um, now it's communitywide, so that formula has changed. I've also seen a report where Bner Chapman is at like 45%. Which that does not feel like our live reality. And I disagree with that. This is another area that um superintendents are pushing back against is this is how different parts of the Oregon Department of Ed uses a different formula. But the title grant is based on um the poverty rate, the free reduced lunch rate, similar terms. Um all the title grants are the title three actually. Um we are in a consortium uh because we only have um I believe
043this year we have 12 identified second language learners, K12. And so we joined a consortium with the ESD and then that means all the small districts with you know so few we combined and we just do a little bit because that grant would be like $2,000. So then we're able to combine with other districts and do some other services. Um I will say under title three we've had um the last couple of years a couple of newcomers. We had siblings that uh came to us from Houston and before that um they were in Cuba and uh they did not like Houston. They did not like Houston schools. They loved living in Sheridan and I was trying to figure out what brought you to Sheridan and they were living in a home in with another family
044and then they end up finding housing elsewhere. >> So um and that's happened a couple of times. We had another student um I want I don't know the I don't remember the country from the Middle East native language was Pjani. We had a translator caught on to English so fast and uh just did exceptionally well and um when they have their translator they know how to use it and you can tell it had formal education in their country of origin. Um so that has been that has been really good and I've I've enjoyed that and so has the the staff and students. But for a variety of reasons, the students only stages a few months and then find housing elsewhere. So that's title three. >> All right. And then just a little bit of information
045about our grants. Uh like I said, they can only be used within the certain buckets for each grant. And then these um some of the grants like high school success will fluctuate based on the enrollment. um and grants can't can't help us. We have to continue to manage them and uh reduce when necessary. And as soon as we get the projection for next year, we we start looking at okay, where are we going to pay? Um if this is what's going when they give us that prediction and then we pretty much know by when August with grant is for the entire year. It doesn't fluctuate within the year. It's year to year that we get that fluctuation. The SIA has been around for a long time. Um I cannot remember. I think it was through
046a corporate tax. It's it's considered to be very very stable. I I get worried that that one should go away, but there's been there is not any talk of it. High school success originally was called Measure 98. Um and that one also has been around for a very very long time. The early literacy grant um has only been during um um our current governor's term of service came up with early learn the early literacy grant. Okay. So do you understand why we're making reductions? Our costs are up. Enrollment's down and because with enrollment being down uh revenue is also down. And there you see the note every 25 students represents 250 to 300k or one to two teachers. So that points it that gives us the uh where we have to start making adjustments. So
047here's the overview of what um we have done so far. Uh we refer to it in tiers. our our tier one started reducing our classroom teachers by five FTE. Um uh of the five, three were resignations. We did give two RIP notices. One teacher took a job at another um district and um and then we reduced an office position by 0.25 FTE and then um 0.25 25 of one district office position went to grant funding to help with the the general fund. Um and then um as the board knows um I chose to raise my salary. Um and staff all have been notified of this. This is this document has gone out. Tier 2 is really where we're at right now. We are looking to reduce five to seven classified positions in the in the
048next few weeks. Um we have looked over reducing our classified hours um and the amount of time on contracts we have um our collective bargaining agreement for the hourly staff or classified staff says that they have to be at 32.5 hours a week to get insurance. We have proposed changing that just to 32. our modified 4 day week created a it created a habit trying to get that point violated and so some will be reduced to just 32 and we will just even it out that way. We've also looked at what staff need to work Fridays and what staff do not need to work Fridays. These are hard choices. This is this is not easy. I have not been through this as a superintendent. I've been through it um as an elementary principal in 2008
0492009. um districts did massive massive cuts during that period of time and it took a while to recover them. Um and then we are continuing to look at um programs contracts. We have a list of contracts. I have uh cancelled the contract with Scooter Education which was another hard decision to make. we might contract with them for just one or two surveys and they've offered that as a considerable discount. The most expensive thing is for rent to travel. So, um just those those hard decisions. Um but we believe we're we're coming close to that $400,000 gap and then we continue to look at okay, what else can we cut? If we take a furlow date, the savings would be around 59,000. And our um uh instructional minutes, if we took a Friday, there's no impact
050to our instructional minutes. So, we may look at taking one or two Fridays to get more than a million dollars by the end of next year. The other thing I'm going to do is just freeze traveler. And it's like we don't you know I go to conferences occasionally it comes out of the general fund. It's like nope I'm not going to be traveling administrators not travel unless it's specific in a grant that is already in place. >> Question. >> Yeah. Okay. So earlier you said it's 59,000 about a school day. >> So when we do um is that number different on operating school day versus right? >> Yes. I feel like it's Yeah. So what is it really on a Friday? So it would take some fur days on Friday. >> Yeah. >> We're gonna
051have to take more fur days to actually >> Yes. >> Yeah. Versus a student contact. >> Do you have that number? >> It was we were talking about it being around 45,000 >> because we wouldn't have all the staff, >> right? Some of your staff one on you wouldn't have here, right? That >> and busing. We only run one bus route for the enrichment. >> Yeah. I think when we first started this a few weeks ago, I I think you said it was 45,000 for um a Friday compared to or 48,000 somewhere in there. But yes, to get that number nailed down as we start to look at this. What did the staff think about like missing a Friday? like you said, well, one Friday a month, >> the school year, like how how is
052it looked upon? >> That's a great question. Um, some of the feedback that I've received is um that if we take away a school day, it brings awareness to the basically this crisis and maybe and I don't know that that would have the same meaning in Sheran has in other districts to increase advocacy at the state level. hurts no one but our students >> like if there it's not going to change anything at the state capital. >> Yeah. >> Like I understand the statement >> but it's only hurting the students. >> Right. Right. And we need to have eyes on our kids. >> Yeah. I just >> they're much better off. We've talked about this even when we cut Fridays. We were so scared because we wanted our kids in our building. So to take
053more days away from them. >> Yeah. Especially meals. >> Yeah. >> So many of our families >> Yep. Absolutely. >> I heard one district had take had used like paid holidays and use that like we're going to take a paid holiday that not as much of an impact because it's just salaries and benefits. It's not all >> but it's less impactful on our students. That's where my mind goes. How do we be the least impactful on our students and their education because we already struggle there. >> Yeah. Yeah. >> Yep. >> Well, and that's where we continue to look at staffing and increasing our class sizes >> um and and looking at um our electives and what electives we're offering um and what does that FTE look like across the board? Yeah. Ruby, >> is
054the increase in class sizes going to impact our grant that is focused on producing class? >> No, that's a good question. Yeah, those those those teaching positions are in the K5 >> and so that already helps to reduce um we've we've we've had the luxury of having class sizes under 20 and we just >> small >> some are really small some are very very small and we can't can't do that anymore. >> Yeah. >> So that's how we've been able to absorb five teaching positions already. I'm getting prepared to absorb a sixth. So, and and we have a couple more people that we believe are applying around and uh we will be prepared to absorb those positions. So, because I'd rather have kids here, I I just I don't I do not want to take
055it for a living. >> I definitely don't think cutting away is a terrible idea just from what I've seen. Um there's a number of class sizes you got in a middle school that are like 11 kids kind of thing. 12 kids in the whole class. And often times, at least when I've been there, there's been six to eight that have actually been in class that day. And so I don't feel like that's a terrible thing to do because we're looking at going up to 25 to 28. >> Yeah. Or grade six through 12 totally. And then I mean there was a period of time where in other districts high school classes were as high as 35. I mean that that was the norm and we just have gotten used to this and it's like now
056we can no longer afford to do this. >> Yeah. Well, my only concern with the live groups is we already have a reduced number of students. So making sure that we can dance around which classes are popular and that kind of stuff and or right because it's like oh you're cutting this I'm going to go somewhere else to have that. Right. So then we're still going to feed into that problem. And then my other concern is staffing, right? Wearing many hats is very taxing. And so then I mean there's the con of we're going to lose somebody that can wear many hats and then maybe get someone else experience that cost less. Right. >> Right. It's also you don't want to get so low that it's like chaos. Yeah. Well, yeah. My husband wears like
057seven pounds, but warned me he can't do it, right? And that my sister said student health assistant for public and she said they just laid off like two people like in her same like set of schools and she said so now I have to give up my field day which was basically paperwork day because now I have to cover one of these schools and it's just like you know it's so hard but it's no situation, >> right? So then we're going to be running into burnout and everything else with our computers. We don't want that. >> And we've talked about how do we how do we have programs for kids to keep kids engaged in learning while we're cutting >> and and what what different things can we do and looking at what electives we
058offer that the students wear a lot of culinary. You know, we can continue to offer that. Um we got the garden ring and so we're looking at that. that's going to be part of the summer programs, but then also what can we do during the school year? Um, we used a bit of a manufacturing grant to to purchase some STEM labs. >> So, this is hands-on learning and super excited that this is something that we can staff and we can offer our students to to get them engaged in learning and it's more along the lines of career exploration because the way the modules are. >> Okay. >> So, yeah. Very good. >> All right. So, >> what's that? It's fine. >> I know Karen's my time keeper. So, we've already talked about this. What would
059these changes mean? We want to maintain our current services. Um, but this is not going to improve our programs unless we're just very intentional on what areas we are going to really focus on. And then you see the shared impact um and our that funding ratio that we've talked about. So, our key takeaways, enrollment drives our funding, staffing is in the budget, grants kind of temporary, they can fluctuate. Um, and then we want to we want to cut pet deeper this year to be ready for the second year of the ban and that's what everyone is anticipating of what is going to be our ending fund balance for June of uh 2027. And then the system limitations. This is always hard to explain with Oregon because the current service level is go looking backwards. It
060catches up and that's where that balance is. If a district all of a sudden had a boom of 50 kids coming in, they have to use some of their contingency or part of their fund balance to survive payroll for that growth because they wouldn't see the funding until the next year. That's that is the challenge of the of the state system. Um the funding is constrained and as as we all know you know the price of gas you know the cost just continued to go up our utilities um different things in maintenance system I love this quote that we put in here system works is design but it is not enough for today's needs okay so our questions on the on the second page of the template. All right. So, do you feel like you
061have a better understanding of our current financial situation? Yes or no? Yeah. Yeah. And what are what are Sheridan's main uh main funding sources? We have grants and we have state school fund. >> What are a couple of points you learned about the state school fund these complicated things that Karen showed you to understand? >> Okay. A lot of things are included in this really long. >> Exactly right. that is very I mean an entire administrative course was spent basically on understanding this and I you know obviously like that was a long time ago >> and it really drives our whole process here like that's what I kind of took away from it and I knew that but it's really impactful seeing like it's the majority of the money it's it's what poor Karen has
062to try and make everything balance through and then it changes and then she has So when she says it's a living document and it's changing, it's it's not because she wants it to be. It's because somebody else is making that happen. >> Yeah, that's exactly right. And there are times I'll get an idea of like, hey, I'll walk back to Karen's office and we could we could protect the general fund because we could do this. We could shift some things within a grant. We could move somebody to a grant. If we get a new grant, can we do something different? Uh it just becomes this shell game of protect the general fund. >> All right. So then if a community member asks you why should school district budget cuts, can you answer that question? What
063would you tell them? Because costs are up, enrollment and revenue are down. The system looks backward. Perfect. And the cost of living is significantly exactly right. I like the gas pump situation. Everybody's Everybody goes to the gas pump and has to pay that price, right? So, we all feel it. There's no different school. Mhm. I mean, I just think of going to the grocery store and it's just my husband and I and what we paid, >> you know, two, three years ago compared to what we pay now and what I walk out with. Like, is that it? And I spent that much money. >> Yeah. Yeah. And it just um I I know our Sheridan families are struggling >> and that's where we also rely heavily on our community resources of what we can do
064to support our families so that kids are in school and that they are learning. Um additional information or this is if we were to do this again, what questions do you have? I made a couple of notes about just sped numbers in other districts. Uh we want to verify what the cost would be to um take a fraud furlow versus um a regular fur. Anything else? >> Um numbers for the fun. >> Oh yes. >> So what do you want keep in overhead >> like what we get for their enrollment? How much do they get? What do we keep? >> I have the contract says um >> yeah for grades kindergarten. This year they're going to get 86% next year 87. The following year is 88. The following year is 89. And then for the
065high school that we provide less services >> less teachers are needed. I think that's why it is. >> Yeah. So, it is show >> you want to plug in. >> No. >> Okay. Well, I didn't know if you want to show the spreadsheet because she's got it, but we can we can definitely provide that information. Anything else before we close out? >> So, the way we control a budget is by cutting days and staff. >> Yeah. >> Because we can't control payroll because that's determined by the unions and the contracts. >> We can't control state school partner. Uh we have some control over grants, but we're doing everything we can. And Samantha just mentioned we are going into good faith negotiations. Uh the license bargaining will start here in a couple of weeks. It is
066the full contract. We generally exchange language and then we get into the fiscal. Um insurance is another area that um we're going to be talking about. and um the collective bargaining agreement for the classified staff, their salary is at 3.5 in their contract. Um we send them a letter requesting to negotiate that and they declined. So um unless something changes there, the classified staff are getting the 3.5. And as Karen explained to the budget committee that um our our budget um um was based on 1.5 except for classified. So we just work that we had to have a number and then we'll see what happens with negotiations and where we live. >> Okay. >> Yes. Um, are we even able to cut instructional days to save money or is that with the executive order? Is
067that >> That's a good question. We can. We will just have to write a plan of what we will do to return to our instructional hours the next year. It makes it all the more difficult the next year. >> I was so we just be banking on hopefully having more next year and possibly being in the same boat. Friday. Yeah, it goes not impacting those students if we at all. >> Well, do we have any other option aside from Fridays at this point? >> Yeah, but I feel like I'm not saying it's a bad option. I'm just saying our teachers really didn't want that or like if there was some real big push back on that other choices. >> I have not done this before, but I believe that the furlow day would go into
068an adjustment of the district calendar which is board approved. Okay. So, that would come down to the board. The board is going to approve the budget the board in hopefully June, but the budget goes to the board in June and then if there's going to be an adjustment of the calendar, um I would hope we would know by the June board meeting. Um if that's where we end up falling where we're still looking at this other um tier and seeing what we can do and by then we should know from negotiations, I hope. >> So, tier two is happening. >> Yes, you are working on that already. >> Yes. Yep. And that's going to be the equivalent of close to five to 400,000. >> So that does not count what we can do in negotiations.
069>> So hopefully some staff are watching us today understand. >> Well, and I think I I think I will send out the PowerPoint. >> Yep. >> And just say this is this is what we went through at the board work session. And if you have any questions about this to contact either myself or Karen. We continue to send that information out >> so that they're aware. >> Hypothetically, if they have been open to reopening the increase, would there be less tests in staffing? Most most likely. >> Okay. >> Um, you know, the difficulty is you saw in the PowerPoint the difference between a licensed teacher and a classified person. So that that that difference in that percentage is a smaller amount. >> Yeah, >> definitely. Um but at the same time >> it is right
070sizing. >> If we don't have as many kids, we don't need as many as you know. >> Yeah. It's just hard. >> Also, I feel like we do one step more. Let's get it back. Because I met with our, you know, pace liability guy. And he's like, well, this year, you know, it was like you paid $167,000 for liability insurance. And he said, I haven't seen firm numbers, but it's probably going to be a 10% increase. I'm like, so that's, you know, that's gonna have and you can't not pay that. So, less teachers. >> Oh, this is like this is based on like way more and you know like the wildfires. >> Yeah, we're making headway and then Oh, wait. Just kidding. >> And on that depressing note, >> there more questions for ladies. >>
071Okay. Well, then it is 7:07 and I'm going to turn. Thank you guys for coming tonight. always available.