001The board of trustees of the Harris County Department of Education now convened in a called board meeting on Wednesday, July 30th, 2025 in the boardroom at 6300 Irvington Boulevard, Texas at 10:02 p.m. This is a rescheduled board meeting resulting in lack of quorum from our regular board meeting earlier this month. We wish to extend a warm welcome to present to everyone present at this board meeting of trustees. As trustees, we are here to set goals, listen to reports from the superintendent, approve budgets, contracts, personnel appointments, and set policy for the district. It is not the role of the board to make day-to-day operational decisions. The management and day-to-day operations of the department are the responsibility of the superintendent. We have policies and procedures in place to resolve concerns and issues. This is a public meeting
002of the board of trustees, not a meeting of the public. Prior to this meeting, board members received information related to items on today's agenda. Agenda items will not necessarily be handled in the order listed on the notice. The meeting is open to all who wish to attend and hear the matters discussed. During the course of this meeting, the board may determine that a close session is necessary. In that event, the board will meet in close session to consider matters duly posted for this meeting as permitted by section 551.071 to 551.084 inclusive of the Texas government code. I respectfully ask that you please refrain from talking while others are speaking and that cell phones are turned off or in silent mode. Thank you for taking time today to join us and for your interest in the
003Harris County Department of Education. Welcome everyone. So we will begin with invocation. Uh, Brandy Bulock, please bow. Lord, we thank you for this day and the opportunity to come to you in prayer. We pray for everyone represented here today as we gather gather to discuss the day's agenda and make um nec necessary decisions regarding our upcoming school year. We pray that you continue to bless the lives of the children and families that we serve from the work that we do. These blessings we ask in your name. Amen. >> And next, the pledges with Gabriel Moya. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Honor the Texas flag. I pledge allegiance to thee,
004Texas, one state under God, one and indivisible. Okay, we don't have anyone for open forum. So, we will move on to the public hearing on HCDE 202526 budget. Never mind. It's not at the top. >> No, it's from from last month. Thank you very much. Yep. The only one there. Where you at? Come here. There you go. Okay. The 2526 annual budget summary uh was a a budget workshop uh uh projected on July the 16 and then also um for adoption on July 16. And so today it's been uh um rescheduled for the adoption. The uh I'm going to go through just the the overall um and not uh through all the detail. Um let me get through to the totals. The total budget is 156 million um 789 in general fund uh 43.6 in
005the special revenue fund debt service 3.9 million capital projects uh 10.4 million uh internal service fund 7.5 million and enterprise 12.4 4 million. Um, what's included in the budget? Outflows of 78.9 and inflows of 78 million. Included in the in the budget is 934,560 of a generator replacement for the Urban Building. uh head start support for 15 uh minimum wage plan of 200,000 compensation plan of 1,297,945 11.6 new fds totaling $646,084 health insurance employee only cost increase of 280,000 uh and transfer out for payments of debt service of 3,882,929. It also includes a head start center manager stipens of 188,000 ONI awards uh to divisions of 198,000 and educational foundation uh 300,000. The uh inflows in the general fund include fees for services 36% uh property tax revenue at 42% indirect cost 4% transfers in
006from primarily from uh choice at 7% other 2% and then state funding for the TRS on behalf at 6%. uh fee for uh reh for service revenues 36% uh made up of uh school based therapy 17% special schools 16% choice cooperative 10% uh records management 3% and other divisions 1%. uh including in the the budget the compensation plans updates uh again to continue to retain talent and incentives and stipens capital improvement plan plans and projected fiscal year 26 financial plan in school-based therapy. The major um clients are Katy, Houston ISD, Cypher, Spring, and Spring Branch. And rates were increased by 5% for this fiscal year. And you see the amounts by each of the the major uh clients. Uh the top three clients make up 77% and the top five clients make 88% of the
007business. In the schools uh divisions contracted services or seats we have uh forest academy 47 AB school east 123 AB school west 146 Hypon East 213 and the rates um uh for this year uh 11,500 for Hyponyist in county out of county 13, 700 AB schools 24,050 uh out of out of county 29,750 uh 40s uh no fees for in county and out of county uh 8,300 and those are the uh increases in the rates 3% and 1% uh uh with the exception of what is at 8%. And this is a an allocation of the uh fees for services by school district for all the divisions. And uh the allocation this is for 2324. Uh we will gather the 2425 as we finish the the fiscal year. Uh the top uh four five scares uh
008cypress uh fairbanks KD Houston ISD other county and spring ISD. And then we also have a leaf and then other universities and governmental units and nonprofits. The general fund expenditures overall are 68% payroll, 7% contracted services, 6% supplies, 12% miscellaneous operating costs and uh capital 1%. and transfers out of uh 8% to other funds in in terms of salary increases general fund uh 15 million I'm sorry 15 minimum uh starting salary and also 2% salary increase um health insurance at 280,000 head start support start uh support the staff uh 15 uh minimum start uh salary and CPI of 2% % as grant is available. Um and Head Start Centers uh stipens at 10,000 each and depending on grant awards uh 2% for grants again to be determined based on availability of grant funding. The total
009cost would be 2,612,29. um items in the capital projects and maintenance notes that are included facilities um uh construction uh AB west uh AC uh unit um AC units 493,240 egress doors at east and west 45,000 coolwood uh gate operators 50,000 upgrading qual 35,000 um and 10,000 for the HR portion lighting 35,000 and other miscellaneous uh uh seating and iPads for the special schools. Um and a transfer for the urban gener generator at 934,560. That one will come out from uh uh reserves uh and all the other ones from the maintenance notes. The total capital projects uh uses it will be 1,88,557. Uh we're in the process of looking at AB North and the feasibility study, looking at sustainability plan, a financing plan, and a leverage plan for the uh projection of the uh project.
010The projection is that we will use a lease revenue bond proposal projected at approximately 15 million uh funding for land acquisition and uh onetime use of fund balance and a additional debt ratio or debt service cost of between 850,000 and 1%. As interest rates have moved up that number may be a little higher because of the interest that uh it has moved up a little bit. uh sell uh similar to AB West the cost of operations is 4.4 75% self- sustaining and additional tax support of 1.1 million. The Omni Awards uh that uh were uh uh awarded uh for five initiatives looking at uh the mastery objective uh national and also innovative um in county and collaborative and sustainable uh and leverage. There were create training modules for therapy academic support uh head start leadership
011academy uh implement college and career programs case 48,000 AB west 50,000 adult uh transition program and then hypon the art studio at 50,000 property tax uh view we're projecting the budget right now at 688 billion um this week we will receive the preliminary uh um estimated uh um values from the appraisal district and we will compare to this number to see where where we're higher or lower than than the projection. Uh it is estimated at uh that the rate for next year uh targeted at 04798. Again we will be depending on where the values end up at the end of uh at the end of this month. Excuse me. The growth on the values since 2021, it has grown 27 billion in 21 uh to 516 billion in 22, 56 in 23, 64, 647 in
01224, 657 in 25, and then we're projecting 688 in this year. So the increases as you can see the the biggest ones were in 23 and 24 but it's kind of leveled out a little bit in 25 and now in 26 we're projecting hopefully an increase of 31 billion. But have you see this is because of those increases in the values there's been a decline in the tax rate for the last 10 years and this will be the 11th year that uh projected to be doing that uh for for fiscal year 26. We will calculate the non- new revenue rate and the voter approved rate uh for the August uh board meeting. the return on tax dollars. Um I'm sorry. Uh so this is 144 million in revenues. Uh Harris County tax dollars 33.1 fee
013for services 39 million and grants at 72 million. Uh return and self-supported by by divisions are you look at revenues to expenses and the tax and where the tax is allocated by division. And so they're outlined in this chart. So the tax revenue to total revenue is 22.9% um which is uh uh targeted well within the 25% that we have been projecting in the last few years. It is projected that we earn 3 point uh $3.37 projected earn per $1 in tax. The projected fund balance at the end of 26 is projected to uh still be at 33.3. We are at uh projected right now 34.2 plus plus and minus during the year. So again the projection is at 33.3. We do have uh five stars for the the controllers's office and uh the next
014step is to have a public hearing uh you know any input from the public and then uh approve the the budget and then the next will be the tax rate in in the month of September. And at this time we would entertain uh comments on the on the budget from the public. Thank you very much. Um I'm recalling from several months ago a conversation that we had um voicing concern for Case for Kids to be able to receive more funding in upcoming budgets because of the concern of them losing outside resources through some of the ISDs. Um what is the difference in the budget from last year to this proposed budget? >> The difference in terms of increase uh expenditure to expenditure or revenue to revenue. >> I I just want to know how much
015we are going to be funding this. Not necessarily. Not necessarily whether or not they're bringing in more funds because >> you're talking overall budget or just case >> for case specifically. >> I have to look for it here. Give me a second. Oh, I should go to the table of contents. I tried to catch it in one of the slides, but I don't think that it was specifically stating between this year and last year's budget. Uh this is the local support only. This is not the uh the the grant from the state. So this is 883,000 versus 910,000 this last year. Let me make it a little bit bigger. So what I am seeing is that last year the budget of what we were able to support local after school programs with was 910,000 and
016this year we're proposing 883,000. >> Yes. And and the main reason is the uh facility charges and other allocated things that are part of the allocation for for indirect cost. um because every year we have to allocate based on square footage uh in the cost of uh utilities and maintenance and so on. So that number is going to deviate because of the allocation. What I wanted to ensure was that we were able to support the expansion of programs where they might be looking for additional support maybe not that existed previously but I want to ensure that our case program is able to expand >> comments from superintendent >> Dr. does your number include our new program out at Barrett Station? >> No. And so how much have we allocated to that program? >> 350,000. >>
017So you could take that number and add it to >> to the 883. >> Yeah. And so that program started when >> this fiscal year. >> It's a case program. >> This fiscal year >> specifically. >> Yeah. This fiscal year. And they're not going to use the entire amount. So it's going to roll over into the new year. >> But we've also funded it for the upcoming fiscal year. Correct. >> Uh it is uh targeted to to to be doing that. So, I don't know if you remember, but we created the new program out at Barrett Station once we determined that we could no longer do ecquin therapy, and we're collaborating with the Black Cowboys and Cowgirls Association out there. And it's an extensive program that also collaborates with Crosby ISD. Uh that program didn't
018get started till the spring semester. And what Dr. Meco is saying is we allocated money for it, but because we started it late in the spring, we haven't used all that money. So, some of that money is carrying over to next year, but the bigger thing is the programmatic point that u we're at the infancy stage of that >> and that one program is 300,000 that's being focused there. That's really high considering how many programs are being run with 910,000. >> I I don't want to necessarily need that answer right now, but I think it's a lot. Right. Um my concern and I think that it was voiced from multiple trustees was that we are the entity which is expected to help pick up the slack in a lot of these situations where ISDs were
019going to have to be cutting programs. And if we're cutting back our funding, we're not going to be able to do that. I just want to be able to ensure that we have the capability to uh focus funds in case for kids to be able to expand where it's needed and look for the areas where we can help. >> Yep. I feel confident that we're doing that and um after having several conversations with the superintendent from Crosby who's really excited about the program that we have out there, very concerned when there was threats to the federal funding. I mean I was the first person that she called because she had a very thin budget as you know and you spoke to many of the school districts are facing budget deficits throughout the state. >> Um
020I think that's a program that's got some legs. it says infancy stage and maybe something if it is successful we could replicate that even in other places. Um to be fair we did allocate $300,000. They actually wanted more. Um it's a pretty extensive program that looks pretty good so far. So I'm really happy with it. We can get more information to the board if you want it. >> I would be interested in more information on that. >> Sure. Are there any trustes that have any uh thoughts to expand on that previous conversation that we had? >> Trusty McGee is lit up. >> No. Well, I am not just the mic, but uh thank you, Madam Chair. Um and I know this really section should be for the public hearing and really it's more appropriate for
021us to discuss the budget when it gets to the action item action eight. So, I just gonna >> Yeah, I wanted to bounce that back out um to call for any public comments. Seeing none, >> also want to point out that there's uh another local support that goes to case and that's the 550,000 that we have to match for HCAC and that brings in some some uh some other revenue. >> Maybe between now and when the budget item comes up for approval, you can add all those numbers together. >> Sure. >> Thank you. Okay. >> Uh Dr. Busa, do you have anything else to add before I close the public hearing? >> No. So the total number is 1.7 million 1,783,777 from local. Okay. So with that we will close the public hearing at 1:26
022p.m. All right. Moving on to reports and presentations with the superintendent's monthly report. >> Thank you, Madam Chair. I just really have two things that I want to uh bring to the board's attention. First, we have our convocation next week on Friday. I expect to see all of you there. Uh we will be having a sneaker contest and there might be even a little sneaker stadium. Um so I expect you to wear your favorite tennis shoes from high school. That's the challenge. I know some of y'all may be wearing some Converse, trusty Cantou or some some kangaroos or some British Knights, but everybody is going to be in tennis shoes next Friday. So, please dress accordingly. Um, this is the opportunity that we get to fellowship, but more than anything, symbolically get ready to start
023school again. Uh when I first got here, you know, it's easy for a department of education to get embedded in this cycle that you can't separate one year from another. When we were designed to service the public, specifically school districts, so we need to this is our attempt to stay in the rhythm of school districts and start when they start. And so convocation is very symbolic of that. Uh probably the most significant thing is just being around the people with a common cause. And um I'm really looking forward to it. I've had to rewrite the last half of my speech five times over the past three weeks because of all the funding issues that have been happening happening. So um please you've got a VIP parking uh you need to put this on your dash
024in your car and it will allow you to park behind the church. So you'll be right at the the entrance the back entrance of the church. So hold on to that. Uh the only other thing I'd like to update you on is we're going to actually start school on August 25th. Um I will ultimately do a tour of our facilities either next week or the week after. And you know uh we have a tremendous amount of professional development that's happening with all of our teachers and administrators. Our um uh uh therapists are getting back together on Wednesday. So all everything is winding up getting ready for school to start again. And so there's a lot of energy and stress right now of everybody trying to get everything ready. With that, that's all I have. >>
025Thank you. >> All right, on to the annual division update with business services. >> Now, Dr. Masquad, I noticed all these um these yellow shirts. >> Yes. Yes. >> And I couldn't help but think that y'all like the Bumblebee gang or something like that. >> We're the yellow jacket. >> You're the yellow jackets. I like that even better. >> This is a joined presentation between business and procurement office. Um Marcia Leva is the uh chief accounting officer and our procurement officer is Dr. Johnson. Um and I'd like to introduce our business and procurement staff. They're the highlight of the presentation. So if you would stand please. >> Uh these are the folks that get everything together and the results that everything you see every month and annually and and the awards and everything that you
026see uh they are they're responsible for every bit of information that that you receive. Uh so we have over 74 years of experience uh um and we focus on goal primarily uh goal one two and three uh within the budget. So this is our what I call our wild rocking finance office staff. Uh and we uh have an average tenure of 6.5. Uh so it's a fairly uh young uh group 19 members in the accounting office. um and accounting payroll, accounts payable and receivable and administration. And then we also have uh eight staff members in the uh procurement office. So this is a comparison in our highlights and uh there's uh the awards that we receive and as you compare with other school districts um we uh kind of outdo most of them. uh they
027may have one or two but they don't have 10 like we have on an annual basis. So in procurement we have 56 solicitations, 729 contracts that you see annually we issued 1,894 purchase orders, 504 vendor packets and u process 411 agenda items. and the majority case and special schools are the ones that have the bulk of the uh contracts that come to to the board. All the other ones you see the percentages there in terms of the purchase orders highest been case head start in construction service in terms of the value of the uh of the purchase orders a total of 40372,459. And so you can see here the uh progression of the uh of the dollar amounts uh the value and the number of purchase orders over a period of time. the PCAR transactions.
028Um, we have 7,898 transactions, 1.7 million on an average of $215 per transaction. And we have 90 cards and growing. Uh, we have a few more for this fiscal year. I believe we are 96. So, this was from 2324. Uh, the majority are in facilities, choice, and special school. Thus would have the double digits and center for education success. All the other ones have u minimum one or two cards between those divisions. So we're looking at digitalize and we're focusing on workflows, contract management platforms and authentication software uh that we're looking to make sure that our processes are all electronic and that uh we uh reduce the uh the amount of time that it takes to process things. We've done presentations at uh various trainings. Uh both Dr. Johnson and and Miss Leva and myself
029have done presentations and we asked to present on procurement cards uh procurement process um accounting risk assessment and various things. Uh we also conduct community outreach u at uh various chamber chambers of commerce where we ask to u do presentations uh at those groups. So we continue to do uh outreach and working with client and engagement and the various uh chambers of commerce uh here in Houston. We also have the what's called the annual procurement annual supplier showcase which is IPASS uh where we try to focus on bringing in more small businesses to participate in our prop RFPs and processes. And just this week uh we presented at the National Institute of Government uh procurement professional professionals uh Dr. Johnson, Miss Roman and myself um in Denver and then Miss Leva at uh uh as
030a request from Representative Congress Lutrell on senior fraud awareness uh in Condro uh here yesterday. Um we continue to do uh uh community work. Uh we uh annually do uh um provide uh uh gifts for some of the uh uh Compton uh students um in Head Start program. So we our staff participates in in those uh those programs. This is the uh uh TASBO 2024 Excellence in Business and Procurement. These are the two awards that we received from TASBO. uh you have to get one to get to the other one. So you got to be uh um uh be able to appro um meet the requirements in order to meet uh both of them. In terms of the ratios uh dollars and cents for the organization, we're at 5% debt to income ratio. We have
031a strong 4.8 liquidity ratio. Most organizations are in the one or two. We're at a very strong 4.8 8 debt to asset ratio we're at 20%. Uh return on assets we're at 13% return on equity if you were to compare us to a private sector we're at 26%. Our debt per capita is 16.8 16.18 property taxes per capita 5.33 debt service load is a low 3%. on assigned fund balance 21% very strong and then a gross operating uh re revenue is 8.9 million primarily because of choice operating measures in terms of employees and W2s and 1099 says you see the uh the uh um comparison over a 5-year period. Uh how much do we bill? Uh again we're at 39 million in billing and then the budget is now as you saw earlier today 156
032million where we were back in 19 uh only at 102 million. Uh number of grants that we have right now 31 grant expenditures of 35 million um and u uh fee for service out of county 694,000. We process over 3,100 journal entries. Um, and we also provide services to uh Stafford, Hitchcock and Tahhano uh as uh their they outsource their their back office business office. This is part of our controllers's office uh information that we'll have on our web website. Revenue to expense per capita uh 24.63 63 debt per capita of 5.9 and purchases per capita 6.7. And then uh we continue to participate in uh various outreach and also presentations uh throughout uh uh here at Texas and also nationwide. Um and we continue to participate primarily with task uh which is what school
033districts rely on to uh pro um to to get assistance uh for their for their business office uh trends as I mentioned uh workflows authentication software and service delivery um and then continue with virtual conferences and attending uh and collaborate with through webinars. What questions do you have? questions, anyone? Superintendent Colbert, >> I'd just like to say that our uh business and purchasing divisions are really the closest thing that you can find to exceptional. Um, we see the number of plaques and awards and Dr. is extremely proficient at getting us patches and stickers and everything else about everything that they've won. Um, but I would say that you can't buy those awards. >> I was going to That's what I was going to say. >> It's an objective perspective from an entity outside of this
034organization that recognizes and creates a standard and then they identify us as meeting that standard. It's not something that you can choose to get. You don't have to just apply and you automatically get it. You have to have done something. And so we have a division here that meets that standard every single time. And they are exceptional. And I never ever worry about that corner of this building. They're down in the in in the basement with no windows. >> Can't get it straight. >> They got, you know, they got all kinds of pancake machines and a freezer. They got a freezer with ice cream in it cuz they know they get locked in there and they can't come out until everybody gets paid. But man, I just y'all do such a fantastic job and y'all
035work as a team. And y'all um you know, you don't like to lose and I love the fact that we have a division that's led by Dr. who has a pretty difficult standard that sometimes I even challenge him to meet it, you know, but uh uh y'all have just done such a wonderful job and you just don't know how much we appreciate you. So, thank you so much. >> Trusty McGee, >> I'm I'm Thank you, Madam Chair. I didn't have any questions. Certainly, Dr. Ms. I certainly echo each of the sentiments of the superintendent too and I um >> can we talk about how great they are now? I've been trying for I've been trying for months because when we got the award so certainly this speaks to my heart for uh for not just
036for business services but for the entire all of the those that are that serve the public and ACDE. So we're so grateful for for what you do and I still value public service. I know some may not uh but we certainly value public service and so we're so grateful and so really the awards are simply a reflection of the outstanding job that you do. You get see the yellow with the reflection. Did y'all get that? So it's a reflection of the outstanding job that that each of you do. You mentioned superintendent that these awards aren't just given. I know some of the detailed criteria that's involved in getting the you know excellence in financial management from Tasbo 32 school districts. When I when I started school business finance in 1998 six at TEA there were
037a,040 school districts and now there are slightly fewer than that of course but then you've got charter schools and all of that too. So out of that number for 32 to receive something is really is really u note noteworthy absolutely consistent and it's beyond exceptional actually the work that you do and so we're so appreciative of it too. So I I rest easy about the finances knowing they're in good uh good hands and so you you each of you do an outstanding job. Really really fortunate to we're blessed to have you as a part of HCD. >> Thank you. >> So thank you. >> Don't go too far Dr. Uh, any other reports from board members concerning any attendance and participation? >> Trusty GU. >> Yeah, I just want to take a moment to recognize
038um our case for kids division uh specifically Dr. K others uh and also support from our uh chief of staff, Miss Barts. Uh together, uh with H those HCDE leaders and their and their staff um um they collaborated with with the East Aldine District, Children at Risk, uh Baker Ripley, Harris County Precinct 2, and I think I'm missing Oh, and Alden ISD. and we put together uh a symposium on youth development uh last week uh to talk about the very thing that you were addressing earlier um trustee that you know we need more youth programs more youth development services opportunities choices uh throughout the county to to better serve our youth to prepare them for the future it's uh uh as I said on the campaign trail the uh what we invest in our youth
039is is what we're invested in the future. So, um anyway, we were hoping to be able to make a case for building on top of what we have the the base, the foundation we have here at HCDE where we serve 15,000 youth, which to me is not enough. And so, uh, we started, uh, planning that event and in the midst of it, we we got the news about the cuts at the federal level and, uh, thank goodness those were restored. But, uh, just yet again, we are still kind of back at the starting blocks. We need, uh, more support from our city, county, state, uh, policy makers and elected officials to to so that we can do more for our youth. And I just wanted to uh share this gratitude with with our chief of
040staff, our our director of case for supporting our efforts. And hopefully we will take this message that uh we have compiled the data and the the we now have a uh a budding coalition that's going to be pushing this this message uh to our local and and state national leaders. And so I just want to I'm proud to say that uh people in the community, different uh organizations that I mentioned are working closely with HCDE on this issue. Thank you so much. >> Thank you. >> Great. So we'll move on uh report uh from any of the board committees, any of the committee chairs. I don't think we're going to have any. And so now uh back to monthly financial reports. one time of the month that we will not have people walk out. Okay.
041Financial uh highlights. Um all our information is posted on our website. Um the top 14 highlight points for June, we're 112,000 in tax revenue this month. Our next payment is on August the 1st, uh couple days from now. Um uh total revenues at 72% target is at 83 uh total expenditures at 66 targets of 83 44 million in in equity uh 14,756 in June donations values at 656 billion u 8 million in benefit uh variance for choice foundation at 266,000 in equity 13% uh percentage for small business 99% Urban project uh complete uh phase one project suspending retainage release um and then the the board uh budget for adoption here later on in the agenda um and one budget amendments for for approval. Um did want to highlight this because it is a um another
042exceptional audit for choice. choice uh goes through an an extended audit, not just the regular audit that we go annually. We do an special review to make sure that they comply with the requirements. And so that's a special audit that we engage for choice partners and they basically give us a an external audit that identifies all the federal requirements that we have to follow all the board approvals and so on. So this is the letter that we get for choice. Not many other cooperatives do that and this is one exceptional uh cooperative that that goes above and beyond as well. The calendar um uh the tax values to be received by August and then tax rate adoption um in the month of September. We're at fif 44,388,000 in equity, our assets and liabilities. Um and
043uh year to date we have excess uh current revenues over resources of 13.1 million uh which we'll use between now and the end of the the end of the year. Our ratios as of June at 36% in unassigned balance uh working capital we're at 47% a strong 47 million unassigned fund balance ratio 40% debt to income ratio 4.3 um our our combined debt uh so of now is uh 57 million in principal and 24 million in interest. Our tax revenue, we're at 27% overall from from the total revenue and indirect cost of 2.8%. Our fee for service is at 19% the same as last year and our growth uh ratio is at minus 11 primarily because some of the uh um programs uh that uh we didn't uh receive from um uh our our AB
044hold for our um for our seats. uh previous uh budget amendments we had uh four five budget amendments totaling 3,410,450 and uh we have inflows of 89% uh versus 72% um budget to actual uh expenditures we're at 69% and overall 66%. So that's a good ratio that we have more revenues than expenses as of this time with only two months going um left in the year. Our um donations is at 373,164 and uh donations report uh primarily for Head Start and Center for Safe Schools are some of the uh donations. We're at 6 uh 56 billion uh in terms of the uh the values. Um and so uh we have one more month uh to see how we're going to end up the the fiscal year. Total taxes collected were 99% a total 98.7% uh
045when you include also some of the delinquents uh taxes. Uh current uh year to date uh we have 794,333 for fees that we paid for HCAT and also the tax office. Again, we're 99% and 99.1 from one year to the next. We have a a dispersement report for uh cash uh register. It's uh 4,451,150175 um 16 516 transactions, 776 uh uh PECRA transaction, six transfers totaling 4.5 million. In our segment division data, we uh have center for education success uh with a tax benefit variance of 1.3 million, records management 600,000, therapy 1.7 and schools uh 5.7 and then we have choice that have a 8.5 benefit variance back to the general fund um in our um Juna uh meeting we had this uh budget amendment uh from uh um for 2 2,685,000 uh in appropriations
046and 4.6 million in uh in revenues and that's basically transferring the money to from choice to to general fund. Uh the foundation uh we are at 266,335. That's the net equity that is still right now in the educational foundation. Um, in terms of our small business report, um, we continue to to work with that, uh, information from our our vendors and we are at, um, small businesses divided by the total. We're at 13% uh, or uh, basically 16,640 that are non small business. Small businesses are 2,519,912 and government and utilities 3,896,907. The detail of the small businesses are outlined there in the presentation. In terms of our um uh construction uh projects, we have in the PFC um funds of 1,781,000 um that is in a lot because of the equity and retainage that we
047have pending and maintenance notes. We have 1,680,248 uh for the 2020 uh maintenance note and the retainings that we have pending so far is 1,258,42. From the 24 maintenance nodes, uh we have 9,957,619 available um in the uh in the maintenance node account and we have 38,424 from the 2024 retainage accounts for the Urbington building. Again, all of them are 99% with the exception of um of some of the retainage that uh need to be paid. So that will be at 100%. Um the maintenance notes uh that are available right now, this is a list of all the maintenance notes and projects that are available and that is 8,790,657. And for the Urbington project from both of the notes, it's 11,781,519. That's the report for the month of June. Um, what questions do you have
048for the first uh report? >> Sorry. Hey, I just had a really quick question back from slide four. >> I know what it is. >> Could you help me understand on number three why we are 11% off of target? No, it's uh this was a uh um number that should have been at 89% because that number is already over here. And I just realized that that number should be where is it? >> I don't mind number four expenditures being lower, but if we're >> here >> lower on revenues >> overall 60 72% Yeah. U primarily because of taxes. Uh I did the budget amendment last month uh for the $1 million difference that was presented to to lower. >> Okay, that makes sense. >> Yeah, >> thank you. >> But the general fund we're at
04989%. >> Overall, we're at 72. and and I really think I should have placed the 89% on top instead of just 72. >> Okay. >> Yeah. Because we're going to focus most on general fund instead of the overall. >> Thank you. >> Mhm. the investment report uh for the month of June. Uh GTO all all our um policies are certified by GTO. Um and uh Fed funds rate uh I need to check the uh the media see the the Fed has changed uh the rates this this month or not but we are at uh this is the uh the rates for the one month all the way to the 30-year note. Uh as you can see the uh the rates is kind of getting uh you know just a flattening of the of the yield
050curve. uh investment by fund we have 69 um 61,720,295 in terms of our portfolio most of it is in uh Texas class 14% techar 29% 7% in chase 30% in lonear and 20% in text pool uh for the PFC we still have 348,584 that are in the uh bank account at bank of Texas and the difference in the portfolio is basically the use of the construction funds atgative8% from one year to the next. Our funds are uh overnight at 61.3 which are the highest rates at this point in time and we need to determine where the rates are going to either go up or down or extend some of our um maturities for for the investments. We've earned year-to- date 2,53,516 uh and the PFC 26,178. Uh we're earning 4.28 uh on our investments. And
051this is the um the range of where they've been. A year ago, they were in the 5% uh range. Now, they're in the 4.2 to 4.3 in the short end of the u of the rates. This is not the long this is only on the 30-day um um scenario. These are the uh rates that are available now in the different uh uh five different uh investment pools that we have. Uh so it ranges from 421 to 429. That's the investment report for the month of June. What questions do you have? >> Thank you, Madam Chair. Um, Dr. Mesqua, the investment portfolio is at 61.3 million. How does that number translate or relate to our our debt service fund which >> uh we don't have a debt service fund? >> No, >> the debt service fund
052all we do is basically transfer the on the date of the payment we transfer from general fund to the debt service fund because we don't have a debt debt service tax rate. So the the debts or the the debt that we have the 55 million >> and another 24 million >> in interest >> of interest. >> So those those numbers don't relate to each other what we have invested. >> Uh no no that's the debt that we going to pay somebody down the road for the next 30 years. This 61 million is basically cash. So why do we say we have 30 plus million in um fund balance >> in fund balance not 61? >> Oh because uh some of it is construction. We have right now if you see the in this uh in
053general fund out of that 61 is 49 million is the general fund as of June. As of August, we're probably gonna end up with 30 million >> because we haven't spent we have over $13 million in excess right now which are going to get spent in the month of July and August >> from the bond issuance. >> No, from the uh from the taxes from the this year's budget. >> Oh, okay. Okay. >> Yeah. Then we have 10 million that is in the construction fund. 829,000 that is the workers comp uh retirement leave fund 1,ion55 agency fund 58. So the total of all these is 61 million. So the 30 million when we refer to fund balance is only this portion right here and out of this this is going to end up being around
05430 million at the end of August because we're going to spend the difference in the month of July and August >> and the debt service payments that we're going to come out of the general fund >> they're going to come out of the general fund. So, we're going to end up with about 30 some million in August. Okay. >> Thank you. >> I just going to mention, of course, the Feds held it steady today, but you can anticipate, you know, them decreasing if we have any more meetings with the president. So, >> Yep. >> Thank you. All right, we'll move on to our consensus action items. Um, I'd like to start by pulling item 7 C. We're going to pull that for modification of the motion, not necessarily for discussion. Of course, we can have
055some discussion on if anyone would like to have some. Um, any other items anyone else would like to pull? >> Trusty Duhan, >> I spend more time fighting with this microphone. F2, please. >> F2. All right. So, F2 and 7 C. So, we'll pull those two items. Okay. >> All right. I'm uh Madam President. >> Yes. >> Let's do D8 for me, please. D8. So, um recall that if you would like to have discussion on any of these items, we can lump that into one motion and then have a discussion on all the items you'd like to discuss instead of pulling them. Would you still like to pull the items you've requested? >> Yes. Okay. So, we're going to pull 7 C D8. >> Yes. >> And F and 7 C. I'm sorry. F2. >>
056I'm so Okay. So, it's going to be 7 C, F2, and D8. >> All right. And with that, do I have a motion to approve the consensus items? >> So, move. Moved by um Trustee Davis. >> Seconded by Trusty Gantu. Any discussion? >> All right. Seeing none, all in favor? Uh two four. Motion carries. 6. All right. So, we'll start with um consensus item 7 C. Um I need a motion. Do can I I can move, right? Even though >> Okay. So I move to consider ratification of the following grant awards. So consider acceptance of the notice of award 06ch013307-1-0000 from the Department of Health and Human Services Administration for Children and Families Office of Head Start for the operation of a Head Start and Early Head Start program in the amount of 7,22,898 for
057the budget period of 70125 through 123125. And then um I'm going to say all of it and we're just going to approve all of it together. Consider acceptance of the grant award extension to end of date from Texas Education Agency for Case for Kids. Nita M. Lowry 21st Century Community Learning Center cycle 11 year 4 and consider acceptance of notice of grant award extension of end date from the Texas Education Agency for Case for Kids. Nita M. Lowry 21st Century Community Learning Center cycle 12 year 2. Do I have a motion? >> Oh wait, that's my motion. Do I have a second? >> So second for trusty from Trusty GU. Any discussion? >> Just to clarify the the motion is to change it from acceptance to ratification. >> Correct. >> All right. All in favor?
058>> Okay. Motion carries 6. Um, next we have item D8. Consider ratification of amended interlocal agreements for fiscal year 2025 case for kids. Nita M. Lowi 21st century community learning center cycle 11 grant year 4 grant to extend the date of grant from period 8124 through 73125 to now read 80124 through 9312025 for all of the following entities. So >> uh moved by trusty Gantu, seconded by trusty McGee. Um discussion. >> Hi. I just wanted to understand the entities and the sharing of this resources that we're providing. >> So on July 1st when the federal government did not release the funds, the Texas Department of Education from the other item issued new notification of grant awards. So the original end date was July 31st to let us spend that first year money through September 30th.
059And so this is the interlocal that then ripples from us to the districts. So from TE it went from feds to the state to TEA to us and then these are the interlocal amendments with the districts to extend the date to allow us to continue to operate on that first year of funds before we knew the next year's were going to be released. >> Trusty Dan. So if this is just a situation created by those holds, why is it only these specific ISDs and charter and associations listed? >> Right? So cycle 11 and cycle 12 each have one has nine campuses and the other has 10 campuses. And so these are the specific sites and school districts on those specific funding streams. and our partnership project which is completely different supports other schools. >> Okay.
060Are there any schools or districts that got denied the usage of these funds that are missing from this? >> So not at this point. So the the federal government did end up releasing the funds and so these schools will continue forward. So these are the federally 21st century supported schools and so in the end everything is going back to normal for this next fiscal year. >> Okay, I do believe that answers my questions >> for now. >> Yeah, for now. >> Thank you. >> All right, we'll put it to a vote. All in favor? >> Did you have anything else? >> No, no, we'll watch it. >> Are you good? Okay, thank you. >> Um, all in favor? Motion passes 6. And lastly, item F2, consider approval to amend CH Local fiscal year 2025 to
061increase Blue Nightly Security LLC by $60,000 to the aggregate amount of $310,000 for SEC security services. Um, do I have a motion? So moved. Second. >> Moved by Trusty Duhan, seconded by Trusty Davis. And any discussion? Just an explanation, please. >> Yes, >> absolutely. So, at the beginning of the year, we do our contract so that we can cover security services for HCDE. Throughout the year, we might have things come up such as um one weekend, we didn't have any alarm system here at the at the Irvington location. So, we had to hire them for the weekend. We had construction things that were going on that weren't included in that contract. So over the year we have had instances where we've had to call them in that were not planned for that were unforeseen. And
062so that resulted in the increase of $60,000. >> So what you're telling me is that last year's budget was not enough for the expenses that were required. Correct. And so you're just accommodating for assuming that there might be additional expenses. Um, some of these have have we we have incurred and some we will be incurring, but we just don't have enough in that item to get us through the rest of the year. >> Okay. So, it's not allocated specifically $60,000 for one particular contract. >> Absolutely not. No. No. It's to get through it's to get through the rest of the year. It is specifically for the blue night contract, but it's not specifically for one event or one service or something like that. Does that clarify that? >> So, you're basically saying Correct. >> So,
063absolutely. No, ma'am. So, we contract for them to be so many hours at Irvington. We contract for them to be so many hours at adult education and we contract them for a certain amount of of hours a day, so many days in a in a fiscal year. At some point there are times that we have to hire them for other events. So for example, you know, we had the the alarm system here was not working. So we had to have them here. We had to have somebody here to protect the building. So that's additional cost that wasn't foreseen in the contract. So we have used the allocated budget for that item for the for that particular company. We've about exhausted that. So we have to extend that so we can finish out the rest of
064the year. So the 60,000 is for this that we're still in the same budget, right? Okay. So what is the amount that has been used so far? Do you have that? Do you have that calculation, Dr. Amsa? >> 240ish. I think on our last calculation it was around 240 that we had utilized. And so, uh, the business office did a rough calculation to see what would get us through the rest of the year, and that was what was seen to get us through the rest of the year. >> Okay. >> Does that make sense? >> It does. >> I had a question. >> Once are budgeted, it's just a contract. We need to cover to make sure that the that the contract covers the expenditure that we're going to have. >> Okay. Thank you, >>
065McGee. And I and I was just gonna add ask as well, do you foresee this being the need for next year as well? >> I don't want to contract or something like that. Anything we need. So we know superintendent I trust that moving forward we can do a plan so we'll know what we need. Go ahead. I I think one of our biggest anomalies this year has been the construction on this building. >> I mean, think about it. We've renovated every single floor in this building and the contractors we've had have worked round the clock >> and they've come up on the weekends and when there's really no HCD employee here, so we need to provide some level of security. Uh there's always issues with people stealing equipment, you know, from our sites. This has
066happened at the adult egg construction site and trying to keep people from just coming into the building. That has happened an awful lot. So, this building really needs constant security whether we're in here or not. Um, but certainly with the system down, but I think the biggest anomaly that's different than all the other years is them working around the clock to try to get this boardroom ready, the fourth floor, the third, the second, and the first floor. Yes, sir. So, I don't foresee this is a rare occasion where we've had to make an amendment to the the budget for security. >> Okay. >> Especially at this amount. It's not that's not common at all. >> Well, with that, it does sound like perhaps it won't need to be worked into next year's budget. That's what
067I was asking. >> Yeah, that's what I'm saying. I I don't I don't know that this will be a reoccurring event. Yeah. >> Yeah. Lord willing, it won't be a reoccurring because I mean we had several different incidents that happened this year that caused us to and and luckily we partner with with a good service that when we call and say they've cut a line, we need you guys to come and be here in two hours. Can you come and serve the weekend and they have and so but the result is this increase. >> Okay. >> Thank you for that clarification. >> Yes. >> And if it does, we trust you bring it back to us if you need some additional funds as you always have. >> Thank you. Thank you. All in favor? Motion
068passes 6-0. Moving on to non- consensus action items. Item 81, consider approval of the Harris County Department of Education fiscal year 2025 through 2026 proposed annual budget totaling outflows of 156,738 $36,471. The adoption of this budget also incorporates the 2025 through 2026 salary increases and schedules recommended by HCD administration. Do I have a motion? >> Motion. Trusty McGee. >> Seconded by Trusty GU. Any discussion? >> Trusty John. >> I would really like the consideration of an increase to case to be included in this budget. And if that takes further discussion right now, then now's the time to do it, right? Um, >> well, I guess my first question would be, would that be at the expense of approving the budget as presented? Because we were supposed to try to get the budget approved last week
069and here we are a week later and now we're wanting to amend the budget. Is that what you're suggesting? Well, we weren't able to have the full discussion on whether or not that was included. >> Have a budget meeting. >> Sure. Um, I think it's really important to include this and if that requires us having a discussion now and not being able to pass it. If that's the legality of it, I think it's important to include it. >> Just real quick. So, Dr. Measa, I want you to refresh us because there was some issue with the numbers that were presented initially and it looked like we were spending less money on case this year as we did the previous year and those weren't the accurate numbers. So, could you please present the accurate numbers? >>
070Um, well, the uh overall is 1.7 million that we're going to be spending from local funds from from case. Uh we do have the uh the funding >> 1.7 >> the 1.7 million includes 550,000 for local funds that we use as match towards uh HCAC that basically matches we use that as a match and that 550 comes from local funds. Then there's 8 um 90 thou 885,000 something like that um in local funds for various programs in the general fund. Now when you compare that to last year it was 910,000 but that is because we do allocations in terms of square footage. It's not because case was reduced budget targeted for programs. It's just the allocation that that that comes out. Um and then uh you also have 350,000 that were allocated for uh the
071uh Crosby uh project with uh uh Black Cowboys and that's uh that is right now in this fiscal year and it's going to roll over because we haven't used all that money for next year and it is targeted that an additional 350,000 would be allocated for that in the new year. Well, and I asked him to do that because I I'm afraid there's a perception that we haven't been growing case. And I I would argue that we have been growing case. And we can look at that programmatically or we can look at that fiscally and sometimes they're the same and sometimes they're different. And what I'm proposing to the board is I would just hate for us not to approve a budget for something that's not the case. True. >> And I was just going
072to ask too is that you show the amended case budget versus the next year projected budget and so I would imagine in that amendment there have been increases during the course of the year. >> Yes. There >> and so it's really not an apples to apples because when once we finish the year we'll actually add to the case budget based upon that amount that we carry forward from this year. >> Right. We would have to add that amount once we finish as of August how much is left over and that is going to be added to the to the budget in the new fiscal year. >> Right. I knew that's why it looked that way because I would always show the amended as well. You've got to show the amended. Um, I' I'd propose of
073course that we adopt a budget, but is this isn't this an area where we could based upon um staff research or looking into it, we can amend the budget if there are additional needs that are uh needed by the campuses. So, we identify some additional needs, give staff an opportunity to make recommendations, and that's I think I believe that's the board's role in terms of uh providing >> that's how the Barrett Station project came around. It wasn't budgeted at the beginning of the budget cycle. It came in in the middle of the budget cycle. So that's always possible. >> Amended. >> I amable to that uh recommendation and I just want to ensure that we are discussing the need for an increase in case. This is very important to me that we are showing that
074the expansion is an option for those that need it. We're looking for the opportunity to be able to expand. And I don't think that putting $350,000 in one district is enough to say that we're expanding where where all we need to be. >> So, as long as we are on the same board about whenever we come back with budget amendments that that would be something that we'd be looking at, I'm I'm okay with going ahead and passing. >> Yes, ma'am. Duly noted. >> Trusty G. >> Yeah. So, I'll just piggyback on that and say especially when we have a $30 million >> fund balance and considering we're only putting 1.7 of general fund into the program. Thank you. >> These programs are incredibly effective in students lives and we have to put our full force
075intention into supporting them. And so I just want to make sure that we are being very clear about that and prioritizing that need. >> I I'd like to thank Case and say that we are doing a good job superintendent. I think all of our programs need attention. So I think we need to uh go ahead with this budget and do this phase approach like we've done and continue to grow case and our therapy services that we that need assistance too. Um, and yes. So, do I need to make a motion for the budget or where are we? >> No, I just we made the motion, so now we're just going to vote on it. >> Okay, motion. >> All right. Any further discussion? All right. Seeing none, all in favor? Motion passes 6. Okay. Um
07682 consider approval of contract renewal option for workers compensation insurance for HCDE through the Texas Association of School Boards Risk Management Fund. Fully ins Oh, go ahead. for the period of 9125 through 83126 and the contract with TASBY risk management fund for the period of 9125 through83126 in the amount of $445,218 moved >> moved by Trusty Duhan seconded by Trusty McGee any discussion trust McGee no really are you sure >> okay all in favor Motion passes 6. Okay. Um item 83, consider the first reading of the following revised local policies. BBD, BBFA, CA, CCGB, CDA, C K, CK, CQC, C Y, CDC, CB, C, G, B, D, E, E, H, E, F, E, H, B, E, H, B, E, I, E, F, F, G, F, N, G, G, F, G, K, A, D, EC moved.
077>> Do I have a motion? >> Okay. >> No action. It's just the first >> Ah, it's just the first reading. Okay. No action. All right. Um, is it 84? >> Yes. >> Consider moving the date of the September 2025 regular board meeting. Do I have a motion? >> What date is that? >> Uh, sorry. what we can do. Do we have to uh we're going to decide on the date in discussion? >> Oh, okay. >> I'll make a motion >> because we don't have a date on here. >> Yeah, it's supposed to be a week earlier. >> Okay. So, do I have a motion? Yeah. >> Okay. So, moved by Trusty Ku, >> seconded by Trusty McGee, >> September 15th. >> And uh do we have discussion? And I believe we're looking at September
07815th. >> September 16th. >> September 10th. September 10th. >> Okay. >> Oh, okay. I'm on the wrong line. >> Yes. September 10th. I'm sorry. >> All right. This is for September 10th. Okay. So, >> wait. So, the motion is to move the board meeting to September 10th. >> Yes. >> Okay. So, moved by Trusty GU, seconded by Trusty McGee. All in favor? Motion passes 6 >> September >> 10th >> September 10th >> 85 consider approval of resolution adopting prevailing wage rates for the HCDE public works/construction facilities project do have a motion >> motion by trusty Ku >> seconded by trusty Davis any discussion all in favor motion passes 6 86 Six, consider ratification of amendment of the service agreement for fiscal year 2025 case for kids leadership academy for the period of 3125 through 83125
079to increase the expenditure amount by $15,600. Do I have a motion? >> U moved by trusty Gthu, seconded by trusty Malik. Any discussion? All in favor? Motion passes. 6 87. Consider approval to purchase four campus metal detectors from Quality Security Systems in the aggregate amount of $76,789 for all special schools. Do I have a motion? >> Moved by Trusty Gandu, >> seconded by Trusty McGee. Any discussion? >> Yes. Would you like to discuss any questions? >> I have a question. >> All right. Yeah. Uh just is someone here to answer some details? >> Yeah. About the metal detectors at the schools, please. >> Yes, ma'am. This is to um replace our old outdated metal detectors. These are some of the um latest technologies available. >> Okay. And that's really what it is about. Okay. Thank
080you. Thank you. >> Thank you. Uh, all in favor? Motion passes 6. I was trying to remember if we had already made the motion. All right. Item 88. Consider approval of the project delivery/contract delivery method of job order contracting and job order contract with dependable comfort air conditioning and heating, Inc. to provide and install three HVAC rooftop units at ABS West in the amount of $390,000 and delegate authority to the superintendent and his designate to negotiate, finalize, and execute the job order contract. Do you have a motion? So moved by Trusty GU, seconded by Trusty Miki. Any discussion? All in favor? Motion passes 6. Item 89, consider approval of the ratification for change order number four for the service agreement with in Indeco sales, Inc. for furniture, fixtures, and equipment for the administrative building renovation
081project to increase the expenditure by amount not to exceed $78,16 and delegate authority to the superintendent and his designate to negotiate, finalize, and execute the change order. Do we have a motion? Motion by Trusty Gandu, seconded by Trusty McGee. Any discussion? No questions. All in favor? Motion passes 6. We will now move into executive session under the Texas Government Code pursuant to any and all purposes permitted by sections 551.001 through 551.084, including but not limited to 551.071 071 and 551.074. We move to executive session at 2:26 p.m. The board has now reconvened from executive session at 3:06 p.m. >> And we will begin with item 911 to consider approval of a resolution regarding retention incentives. Do I have a motion? >> Make a motion. Moved by Trusty Ku, seconded by Trusty McGee. Any discussion? All
082in favor? Motion passes. 5-0. And is there any discussion about possible future action items? Uh, future agenda items. Anybody have anything? >> Okay. Go ahead. Yeah, I would just uh bring up the the whole u discussion hopefully leading to an agenda item um dealing with the budget amendment for case. >> Yep. >> All right. Okay. Do I have a motion to adjurnn? >> So move a motion to adjurnn by trusty GU. Seconded by Trusty Duhan. All in favor? And the uh motion passes. 5-0. Meeting is now adjourned at 3:7 p.m.