Huntington ISD School Board Meeting

001bring a word of prayer. >> Yeah. Let's pray. Father, we thank you again for our time to come and do the work of the district. Lord, we're we're thankful tonight for our new board members and for the community who went out and exercised their right to vote. And Lord, we just pray that you'll help them and their tenure here and what they do and help them be able to make a difference for our kids and our faculty and our staff. Help us tonight, Lord, in our meeting and in our budget workshop after this. And we thank you for all that you do for us and we give you the praise. In your son's name we pray. Amen. >> Amen. To the flag of the United States of America and to the republic for it stands

002one nation under God indivisible with liberty and justice for all. >> Texas flag to Texas one state one and indivisible. >> Well I started without a greeting. I'd like to welcome everybody here. Uh glad you came. This is exciting time. We're going to swear in a couple new trustees and uh it's going to be a good time. I'm excited for that. And we also have budget workshop. So if you're interested in that, that's also going to be part of this meeting once we're done with all the other stuff. Uh Mr. Cliff, do we have anybody open forum? >> No, sir. >> All right. Move on down to number three. Action discussion items. Right now canvas election returns to declare the results of May 2nd, 2026 board of trustee election. So, I've got the results from

003the election there. Uh, for position number one, Robin Arnold with 236 votes. Jacob Sap with 229. Position number seven, Monica Ivy with 240, Bradley Stringer with 80, uh, Chad Brock with 79 >> and Dennis Bell with 64. >> So, for position number one, we have Miss Robin Arnold. Position number seven, Miss And at this time, Chief Jenkins, >> who would like to go first? >> Huh? >> You going to do Ben first? >> Can we just all go at the same time? >> Yeah. Let's just speak and see. >> Did y'all prank? We can come up there. >> This is a whole here. This is my two of my kind. >> Raise your right hand and just read the paragraph as it's stated in front. I authority of the state of Texas, I Robin Arnlely

004swear that I will faithfully that I will faithfully execute the duties of the office board of trustee of the state of Texas and will do my best of my ability to preserve protect and defend the Constitution and laws of the United States and of this state. So help me God. Y'all want to take some pictures of the new ones? >> Come on up here and do that. >> Yeah, you showed up. Get all the pictures you want. Hey, hey, hey, hey. It's a little >> sweet. >> Yeah, you wouldn't have done it. I know what you >> No, I wouldn't have done it. I just got two. All right, at this time we'll move us down to action item C, reorganization of the board. I'm going to turn it over to Dr. for this. >>

005Okay, at this time we're going to reorganize the board's officer positions and I'm open for nomination. I make a motion to nominate the following for two board offices. President Josh Sins, Vice President Ben Watson, Secretary Charles Robinson. Second make a motion and a second. Um, any other input? Okay. All in favor? >> Any oppose? Same sign. Okay. Motion passes. President Justin, Vice President Ben Watson, and Secretary Charles Robertson. We're going to action item uh D consideration uh an action for discussion of possible appointment for trustee position three for special election. So, we still have a vacant seat here and we need to decide what we're going to do, whether we're going to appoint somebody in that position or if we're going to hold a special election in November. Open the floor for any discussion. So,

006uh I think uh based on just my opinion, uh this is just me. I have visited a little bit with our new board members and uh the community did a phenomenal job in my opinion showing up and vote during the election. I thought it was a good turnout. It was a good campaign. Everybody was rooting for our kids and our faculty and staff. And uh Mr. Sap finished third. And uh we we purposely didn't appoint last month because we wanted to hear from the community instead of just appointing somebody. And so I don't think it's good to spend another three grand or whatever for an election in November only for an appointment to be for that May. This appointment would be for the remainder of this year. uh from Mr. Wood who resigned. So uh

007I uh I would like to see us uh appoint Mr. Sap back on board for the remainder of the year. >> Any other discussion in that matter? >> So have that by way of a motion. >> I'll make that into way of a motion. >> I second it. >> All those in favor? All oppose? Same sign. Nominate Mr. Sapper. Position number three, Mr. Sap, come on up here. Chief, that's something for you as well. >> Read this again. >> All right. You know the route table. I, Jacob Sab, so I only swear that I fa that I will faithfully execute the duties of the office of school board trustee of the state of Texas and will do my best for my ability to preserve, protect, and defend the constitution of the laws of the United

008States and of this state. So help me God. All right, we're not going to uh we're going to go ahead and skip number four. That's executive session. So now we will convene into budget workshop. Y'all are welcome to stay if you'd like. It's all open forum, but you're also free to go. >> Thanks for coming, man. We couldn't get any vis. You just wait. >> Hey, Charles brought up a very popping directly. >> He said he's hungry. Did we have any food? And we're about to hang on just a second. >> They showed up for >> they only stay here a coach or something otherwise. >> All right. For budget workshop, it's still open for them. What we're going to do, we're going to cut the video fee. It's going to be audio only. Uh

009will be a a wallpaper or slide saying we're in budget workshops since a workshop setting. Um all this stuff is public information. So it will still the rooms will still be audio recorded uh and then put on YouTube is what probably tomorrow night tomorrow >> live as we speak. So that's where we're at now. We will be take a break. >> All right. So, we're going to adjourn for just a minute and we'll be back. Good. Go ahead and bring us back into open session. Move on down to item number six, budget workshop. All right, the floor is yours. >> Thank you. Thank you for being here. Um, I what I did is I I've printed everything that I think that we will discuss tonight and obviously I have I'll be able to questions for

010you. The first thing that I'll go through is the presentation that I have for you. Um, just to kind of give you a status of where we are, kind of how we got to where we are and, you know, where we hope to try to push ourselves to. Um, just in an effort to make sure that we're communicating all of that information. Um, currently fiscal year we set our general 199 fund general fund budget at 20,367,750. That was amended following the original budget that we adopted in June because we were waiting on the legislative session um to conclude and to uh tell us um how they were going to fund specific things. >> Excuse me, Mr. Clifton. Are we in this? >> Yes, sir. >> Page two. Thank you. >> Yes. Um, currently as of

011the end of April, the district has spent 14,312,467. um with an average monthly expenditure going anywhere between a million five to a million six just depending on uh the month and what we are um you that typically that million6 is going to occur early in the year when we're buying supplies and all of the startup um items and then it's going to taper off this uh in April I think we actually only spent a million48 or something like that so it it always hovers right around a million five a month we also So, every year because we're a um July one fiscal start, we have to acrue two months of payroll for all of our 187day contracts and then we have to acrew a month of payroll for all the 207s. Um and and the

012reason that we do that is that we account for pushing the money from this fiscal year into the next because we will pay two a month to two months of salary in the new budget year when we get there. So when we combine all of those, it becomes difficult at this point for me to tell you exactly what our total expenditures are going to be because there's a lot that factors into that. I can tell you about what we spend a month. I can tell you what um our payroll acral is going to be. What I can't tell you is what audit adjustments that will come and so how we actually finalize that. My the expenditures I expect are going to be somewhere in the neighborhood. I put not expected to exceed 19. Um, with

013audit adjustments that may push to 19, too. It just depends on what the auditors say needs to be reclassified or put back in this year. Um, and so I apologize for not being able to tell you exactly what how things are going to work out. I'm just trying my best to estimate for you at this point. From a revenue standpoint, we were able to project that we were going to have basically equal revenue. So we were having a balanced budget. Um this current fiscal year um to date we've received 17,223,445 from the state and local collections as other revenue and then in addition to that other revenue streams. Um and then we have approximately a million8 uh to two million that still will be owed to us um from TA in our foundation's payment. Again,

014that puts our our revenue somewhere going to be really close to what our expenditures are. So, my my expectation at this point is that we're going to for this current fiscal year have a balanced budget. Again, that's somewhat dependent upon audit adjustments. um how our our PI's data ends up at the end of the year because how TEA is going to settle up with us is going to be determined by our final submission that we send in. We have continued to see just a little bit of decline in enrollment and a little bit of decline in ADA. Um and so that's our primary funding mechanism. So depending on currently TEA has us at an ADA of 1380 in the summary of finance, we're really going to be closer to 1350 is is my assumption. And

015so we're going to lose some revenue that they won't settle up with us at that point. And so the auditor will make some of those adjustments um once we kind of determine how we end up um when they start going through our financials. So I say all that to say we currently find ourselves in a balanced budget, but we're moving into a year where everybody is getting a step increase. And so when you get a step increase, that's increased payroll expense. And so that would take us if we're going to get a similar amount of revenue because this is a non-legislative year. So we're going to get a similar amount of revenue next fiscal year, fiscal year 27, that implies that there will be a deficit. Okay. So what I ask all the principles um

016directors to do is we are not asking anybody at this point to like slash budgets. That was not the goal. I asked them to look at their budgets and try to eliminate somewhere around 3% from their budgets so that we could save as much as we could on the non-payroll account side. as well as as we've shared with you guys, you know, as approaching this, there have been some positions that we're not refilling just to account for that reduction in student population because at some point we have to adjust staffing for student population and and we're doing that I would I think very um mindfully in the sense that we're we're not just like I think our goal this year is three positions. Well, we've lost almost a hundred well more than a hundred kids

017in the last two years. So, three teachers and 100 kids. It stands to reason that that is within that that I would say a normal reference range to say if we save those salaries for kids for individuals who have direct contact um with the students. It matches that. The unfortunate thing is our district is based we have all of these u facilities. We have the buildings. They all have to still be cleaned. We have electricity. it has to operate those buildings. It's we can't really reduce um maintenance guys at that point. Um and so at some point like it it gets difficult to to cut and all the operational side because all that stuff is still the same. The only thing that's changed primarily is our student counts. Um and then attendance rates on top

018of that have continued postcoid to be problematic. Um and so that's where we kind of currently find ourselves. Um, does anybody have any questions about our current financial >> just for clarification? Yes. Maybe for the new ones, but so on the second page where we are. So >> revenue budget, you're saying you're expecting 20 million 371. >> That was me setting a projection for the revenue >> based on the student counts that I had last year when we created this budget. >> That's what we approved. a year ago. >> So, we plan on having >> that's what we had hoped. I used the word hope. >> Okay. So, the one next to it, the amended, that's what we're actually going to have. >> No, so and I apologize. I tried to make this I know

019some of this >> Well, no, I'm just trying to see how what are we spending? >> Yes, sir. On the left hand side is expenditure. So, if you'll see down at the bottom >> at the bottom of both those columns >> y >> the expected um you see those almost balance >> with a little bit more revenue than it is. >> That's a that's a very arbitrary number >> because again it's there's a lot of factors that play into that. >> Um there's a you know all the FTEEs that we have in CTE and special ed um speech and um you just named the the litany of things that were funded and that weight those funding. Um that's why it's very difficult to to project that down to the dollar if that makes sense. That's

020a that's a great question. I >> No, that's good. >> I confused this. >> I went back and forth trying to determine how to present this information and make make it make sense. So, I apologize. >> I have a question. Yes, ma'am. Go ahead. We're still >> Well, I was just gonna say later what I think would be interesting is we talk about all the time kids that miss and we don't get our ADA. >> Yes. >> Kids that are absent. Have we ever run a chart on how many kids miss and how much money we lost by them not being in school? >> Well, yeah. I mean, I can give you a a general idea because it's really not the attendance percentage as much as it is that ADA count because that is a

021function of our enrollment on any given day and the percentage of those kids that show up. >> I'm just I'm just trying to figure that out when we try to encourage. So when we say we lose students in ADA, really that is what I'm saying is we are losing approximately $7,000 a student, >> okay, >> that we lose in ADA. And and and I know attendance percentage is important for the educational process, but for a from a funding standpoint, it only factors in and couples with our enrollment. Okay? So those attendance doesn't necessarily stand alone in the funding mechanism if that makes sense. It only is a is a is a portion of that. >> My question you said just a minute ago uh the 2027 budget tea was giving us an estimate of 1350.

022>> 1380. Yes ma'am. >> You said 1350 >> 1350 is what we currently are. >> Okay. So how Is that down from the previous year? You have just any guesstimate how? >> Yes, ma'am. Compared to the previous year >> considerably about 65ish points from previous year. >> So that equals like,000 student >> roughly. Yes, >> okay. Another question I have. You mentioned here the other day about u they capture our attendance on a certain day. It's not an average. Did I dream that or did you >> Well, so well actually it's even changed from that. So we actually our attendance data um is in a live system every day. So every day when we post attendance and we report that through themes, it goes in through a system called Edfi that they changed over to.

023And so our attend our attendance never stops. >> Um and then we have submission of that data, final submission of that data. But it's so different from when I started where that puns, they never had any idea what we were going to submit until we sent the submission. >> Now they know that live. They know it um immediately as the day ends at midnight tonight. It'll post today's data in the system. And so it's a constant uh moving system. >> So did they c am I right about that? Would you tell us that that they captured on the certain date the attendance it's not average? >> Well no ma'am what I I think what I remember what I what I said was it is so on any given day let's say today we had an

024enrollment of 1483 kids but yesterday we had an enrollment of 1482 and so every day is captured standalone. So the the number of kids that we had enrolled versus the number of kids were in the seat and it's a running total and at the end of the at the end of the year that ADA is calculated by the number of opportunities we had for a student to be in a seat and so when we divide that out you know when we when we add all that together for the year then we divide it by the number of instructional days and that's the ADA that we're the refined ADA we're talking about. Um, >> and that number is typically less than what you see as >> Yes. >> And honestly, folks, I think that um we're

025not a lot different than a lot of districts in our county. Attendance right now across the state is hovering right around 93 to 94%. That is just the postcoid norm. We do everything we can to make contact with these students. We try to communicate with parents. um truency is not something that we have the ability to really utilize um in an effective manner anymore. Um you wouldn't believe the number of contact hours these assistant principles and principles have on the phone calling trying to get students here. Would you agree with that, Mike? I mean they spend a lot of time every day making phone calls. >> They're making our principles are doing what they can to incentivize to the best of their ability at the younger grade levels. We know that it's really not them

026that's getting them to school, it would be their parent, but as they even get older. I uh were on email threads of this the districts or each campus and uh every day we get a report on how many what our percentage of attendance was and uh the high school I believe it was was it yesterday had over 95% so today they got to wear a hat. You send it out. They said we're over 95% attendance. Way to go wear your hat. So, I mean, even the little things I know at the intermediate school, they rally for recess if they attend or they're just trying to incentivize coming to school. >> And I only bring up like county and state, but just to just to illustrate that this is not a local problem, >> right? Are

027we maybe a little lower than somebody else in the county? Well, that's possible. And it just depends on the school and um you know, really any given year. Um, and and really you'll see as we go into the in a couple more I'm going to I have a graph to kind of show you about a 15-year look at enrollment and ADA and kind of how that has peaked and then trended downward. Um, and so this has been something that has been coming over time. And we knew that we eventually were going to, if the trend continued, we would get to the position we are, which is we we just have fewer students producing less revenue. And so we have to make adjustments to operate the school in a balanced budget because over the years, the

028the board and administration has done a good job at building a healthy fund balance. which will be the next page that we look at. But there comes a point where we have to stop and say we can't go below that because we have to be prepared in another COVID type situation to be able to cash flow payroll for a period of time without having to liquidate every asset that we have in investments and that kind of stuff because at some point you just got to pay the bills. Um, and and has there ever been a time where Huntington ISD had to go to three months without getting paid? The answer to that is likely no. It's beyond my if it happened, it was beyond my time. >> But the reality is in a legislative year,

029we could go a month or two months and that reduces your liquid capital substantially because as I mentioned, we're paying a million five, a million six a month. I mean, that's three million to 3.2 million just like that if for some reason in a legislative year they decide not to fund anything because they're having a political hold out. And so we're right there at that point where we just want to be careful about continuing to dip into fund balance and having a deficit budget because we don't want to we don't want to put ourselves in a situation where we don't look healthy to our taxpayers and that we make sure that we don't have to worry about making payroll and constantly be pulling money out of we we rely on investment dollars at this point

030as part of this revenue. So let's say Seven years ago, we made hardly anything off of investments. The last five or six years, let's say COVID and post, that's been a pretty large revenue stream for us. >> It is slowly fading because as everybody knows, interest rates are are creeping down. And so, as interest rates creep down in, you know, in the in the global economy and in the the the national economy, it impacts us, too. And so, that's why I say maintaining that fund balance is important. um in the sense that it gives us the ability to make sure that we take care of our people in some unforeseen um disaster as well as if we have a natural disaster and we have to um you know pay our deductibles in insurance like we

031have a building get knocked down by a tornado, we're all going to be really glad that we have the fund balance because we're going to be able to operate and get things started as we're waiting on um you know insurance to kick in and then pay the deductibles. So I want to bring that up and and we'll move to the to the next slide. And the the other thing that is interesting about fund balance. So um Mr. S, I don't know if you've noticed, but every month when I give my financial update, I say something to affect expenditures remain consistent. Cash in the bank remains consistent. And the reason that I use that terminology is because we only establish the fund balance annually when the audit is happens. So the fund balance doesn't change month

032by month. The way that I monitor that is by looking at cash in the bank. So at any given time, I can't necessarily go in and pull and and get statements and tell you that we have $7.35 million in the bank because we don't have that right now because we don't get paid um in April from TEA and our local collections are are slowly fading at that point. And so we've had no significant income since we were paid in March. And so the the the point I'm I'm driving at there is that having that liquid capital allows us to get through those times to do that. So as you'll see the the general fund balance as of um June 30, 25 was $7,355,656. That's unassigned general fund um balance that can be used at at

033the board's discretion. Matt, that's somewhere we had to get there about 800,000. Was it due to the homestead appraisals? >> Is that great? Was that at one point I really thought we were floating around the 8 million mark. >> So we I mean just you have to consider that the last three years really we there were some projects done that the board elected when the fund balance was over eight billion to because we have to do that at times. We have to do capital projects and we have to renovations the best that we can. And so we have drawn that down now to 73 because the last two years have been deficits because the state really didn't there was no legislative relief there. And so we've had to rely on that. We didn't have to

034jump and make snap decisions because we had the fund balance to allow us to continue to operate and make metered decisions about where we were going to make cuts. >> That's what I want to clarify. It wasn't a frivolous spending deal. >> Not at all. you made it clear last year in the workshop. We've drawn it down a few years. We got to hold up >> and so we have that conversation. >> I also put together I guess to an extent I'm a nerd so I have a graph there too because it's visual to me and so you can see that over the course of from 2012 to 2025 what our fund balance has done. I would like everybody to kind of take note of the year 2020. We're following what most districts in the

035state followed, which is when COVID happened, federal dollars started funneling into the state, which allowed us to not spend local general fund dollars. We we were able to do some projects and um take on some expense that we normally didn't have the money for. So, we were able to put more money back out of the general fund into fund balance. Now, the co dollars have of course they were they bent over for us because again the the board and the administration did a good job of spending that money on what needed to be spent on and not letting it just sit out there. They also made some critical decisions that were that were positive for us. They did not make payroll out of federal dollars that a lot of districts did that all of a

036sudden had to do a complete 360 and had to start playing catchup. So, I I I simply am just stating that we've made as a district made good financial decisions and we have a healthy financial position, but we're having to make adjustments because we can't continue the trend and maintain a healthy position in a healthy fund balance because as we saw in fiscal year 25, it's nothing for six to $700,000 to go out of the fund balance because of loss of hold harmless money, loss of enrollment, um increased homestead exemptions. Um we also offered the 20% additional optional local homestead exemption. The state doesn't recognize that. And so the way just to kind of give you a brief um understanding, you have state revenue stream and local revenue stream. And essentially the state says this

037is how much it's going to cost you to operate the school based on your student counts for this year. They're going to deduct out what you're going to collect locally. And the only no way they know what we collect locally is what the certified totals that are turned in. That doesn't include what we actually get to levy because we have the local optional homestead exemption. And so that's about 300 to $400,000 annually that we don't that we don't have to operate with. I'm not taking a position against it one way or the other. I'm just simply painting a picture. That's why it's so easy for us. You know, somebody goes, "How do you go in fund bount $700,000?" Well, you have a a tough couple of years where enrollment is steadily moving down. You don't

038get the revenue, but you're staffed for that higher enrollment and ADA continues to be an issue and it I mean, it just happens quickly. And so I again I don't want to I don't want to drive that nailed, but I I I want to applaud y'all in allowing us to recommend solid conservative fiscal management of the the assets that we have because we never know what is I mean we if we learned one thing from COVID it was you can go from like everything is just normal to nothing's normal anymore in in the course of a week. So, >> okay. On to the next page. >> Do any other school districts offer this 20% localiz >> in the county? None that I'm aware of, unless Zala does, but I don't um I I don't know.

039I would have to I would have to get a copy of their levy to see. I can probably call and they might tell me. I'm not sure. Um but it's possible. But I Lin Hudson central I don't look at eyeball. I'm most possibly do not. Pounding Woods is a separate deal because it's a charter school. So, it's it's completely different. Um, I think it's great for our taxpayers, but there is a cost to that for our school as well. And so, I only bring that up so that you're armed with all the information so that maybe you know why we are in some positions that we're in moving forward. Anybody have any questions about that? I don't want to like glaze over anything and like I'm I'm happy to answer any questions. Okay. So, how

040did we get to the position we're in? Well, we've had no legislative relief really. So, the state has moved to funding us primarily through aotmentbased um pay. So, this most recent one is the uh teacher retention aotment which gave our teachers a much needed increase. Um but what that did is leave everybody else um out and so they did not fund anything else. Um additionally we have really what would be considered extraordinary in inflation over the last five years that has driven the cost of everything that we do up. John Crane and I laugh pretty regularly because used to, you know, um, going to get a some supplies from somewhere, we put in a PO for $250 or $300. And now it seems like everything we do is $1,000. Like, you know, we just can't

041do anything or we can't have a a plumbing contractor come in, an electrical contractor come in, and it's not $2,500. You know, it's just everything has increased. And and y'all all see that in your businesses, in your homes. I mean, that's just the way that it is. And then additionally we had the loss of student enrollment. Now the next page is kind of I mentioned to you about some graphs. This is the enrollment trend since 2010 2011 school year to today. Now the good news is we were able to kind of somewhat see this coming because that as you see that trend has been moving downward. Um, I want to say somewhere around uh the fiscal year 2012, our highest enrollment there was just north of 1700. Um, Miss Little, Miss Arnold, y'all will remember

042y'all's classes were probably slat full >> um in those years. You know, we had a lot of kids. Um, and then you you'll see it as that moves along. And then the next um is that the ADA trend and you'll see that there's a little steeper curve. What did I did I say something? >> Little Sorry. It is okay. >> You did say this big. So that's all right. >> That's right. >> I'll still answer to that because I was that forever. And that's what I was promise that's not going to That's right. I can't promise that's not going to happen. >> It's okay. >> I was wondering what was bringing them the water bottle. It wasn't that bad. >> That's right. >> I apologize. Thank you. Um the the ADA trends is to me

043the one that doesn't quite follow the enrollment. We would have hoped that the ADA trend would follow the enrollment trend, but as you can see, it's a little steeper decrease because um collectively um >> collectively >> she was going to write a check. here to talk about the budget. >> Okay. Um >> maybe she wants to talk about enrollment work here for years. She can talk about >> she can enroll. >> Um >> I wish that I I felt confident that we were ever going to be able to rebuild the attendance rate to help with ADA, >> but I just don't I mean there's nothing that indicates that that trend is changing. If anything, it's getting more difficult because now there are more options, right? So I want I want to I want to paint

044this scenario. When I was a middle school principal, we would have kids that were perennial they had perennial absentee or chronic absenteeism and they would lose credit because they owed clock hours. and you would do clock hours and you some of them would scrape by and then some of them just never got there. Well, there was a pretty significant consequence at that point because they were going to have to be retained in a grade. Now, if mom and dad potentially don't like the outcome of a conversation about attendance, they have options. They can say, "Hey, we're going to check them out to homeschool." And so that's why I say that that trend is going to be difficult for us to repair because it just there there's really not a mechanism there for us to for

045that accountability. >> Um >> garden club. >> She was looking for a garden. I said it's not in here. So any follow I know ADA is one of those things that may not be you may have heard that term but you really may not fully understand how we get there but every day when Casey Jones sends out the enrollment and attendance data I'm looking at that enrollment number >> because the only way that we're going to make any measurable change is going to be in that number. >> And just a just a note I get a weekly report just something you can look for in anyone else out there. Um um on my newsletter that I send out each Sunday evening there's at the towards the bottom if I try to highlight it maybe it's

046at the top come to school or whatever there's going to be by campus the percentage of attendance it's an average for the week prior it's I always get it a week prior and our enrollment number so very interestingly um you can follow that every single week so I try to report that just so it's important to us and I It's important as people in the community to understand how it affects us at >> um so the the question is and we're going to get into the the the discussion of what we will be looking at for next year's budget is where do we get where do we go how do we continue um to operate and operate operate effectively and as efficiently as possible and the only thing that I was able Dr. Fishett Fishetti

047and I to discuss this that we can do that is to adjust staffing to enrollment to adjust spending to enrollment. So we have to adjust those non-payroll accounts to for a for a lack of enrollment and then we have to defer large projects. We just can't. We've had the benefit over the last few years of having some money to do some large projects. And guys, I know that the the buildings need help. I know that they do. >> So, we're not getting turf on the football field this year. >> I think we're have to put that one off this year. Um, >> you know, we think y'all are spot on, but you know, we It was before I got back on the board and we talk about this all the time. Uh the board then

048wanted to do a bond and fix up some buildings and do some stuff and you saw where that went flat. >> Yep. >> And it's because we needed to take care of our own physical responsibility before we go ask taxpayers pay more money. all that stuff. But what came out of that conversation was, and Sherley, you'll remember this, we talked about it, even though we weren't on the board. The community wanted us to do what we could to take care of the stuff here with the money we had. And once that happens and we get to the point where we're at today, we would look at what needed to happen next. And I think you showed it last year. I remember we did a list of everything we spent over the last five years. I

049don't remember how many million that was, but it was several million >> that came out of fund balance >> and >> or just out of operating >> out of operating. Yeah. >> And I don't there's no more of that to do that. >> Yeah. We have to be at this point we have to be we have to be careful with with what we spend in that. Um, you know, I caught myself the other day and I said something about um our well, our our new our new building in the district is the high school intermediate >> and then I kind of laughed to myself because it's 27 years old because it was constructed in 1999. I think we were first in there in 2001. >> So, we started the project in 99 and >> doesn't

050seem like it's been that long. >> I know. Especially since when I started it was still pretty new. So, Um, you know, the the again, we're just at the point where almost every floor in the district needs to be replaced and we recognize it, but you know, we can only strip the floors that are there so many times before they start popping up because it has good glue release. So, I say all I say all this to say that I want you guys to know that we're doing the very best that we can with the money we have available. And unfortunately, this last legislative session did not produce that legislative relief that we really needed. >> What moving forward, you know, it's going to be a year-by-year um decision like what are we going to

051do? How are we going to navigate this in January of 27? It'll be another legislative session. I'm not sure which I um that makes me feel all warm and fuzzy either because we just never know what's going to come out of a legislative session. But I hope that they recognize that we have a lot of important people that work in these school buildings that support our kids that don't necessarily work in the classroom. And we have to have every one of them Um, and their cost of living has increased just like everybody else's. And so, um, I'm very I'm very passionate about this because I was a teacher and I was an administrator and now I work in the admin building, but I work with a lot of people who have never done any of

052those things. But I tell you what, what they do is pretty important. Um, because you'll hear it all day on the radio at the elementary campus about what needs to be cleaned up and what needs to be fixed up. But it's, you know, there's a lot going on there. Um, so what I'm attempting to do is I have three options. The way that I prepared the budget mine. But before we get into that, I want you to skip to the fourth page. >> Can I ask when the last time do you know when the last time Huntington passed a bond and when it was paid off? Are we still paying on a bond? >> Yeah. So, we are still currently paying on a bond. The last time that we called a bond and it passed

053was the bond to build the high school and the intermediate school. We did a tax roll back election >> um which they call a Vader now. I believe the terminology is a little bit different that we did the middle school um add-on and ren you know that's when we built kinder kindergarten and maybe first grade. >> Um and so it's been that time and to answer your question about yeah I mean we still have you know I don't want to quote how many years we have left on the bond payment because it's not something I look at um down the road, but we still probably have 10 plus years on that. >> Okay. >> Um because some of that was refinanced when interest rates became favorable, which was a smart thing to do because it

054saved the taxpayer money because that INS rate that we charge only goes to service that bond debt. So, if they were able to refinance and streamline those, it lowers that rate, which lowers the amount that it charges the taxpayer ultimately. Um, and so unfortunately in school systems, paying off bonds before you have to call another bond is just not very usual. It's it's very unusual. And the reason for that is is because those bond terms really outlive that major renovation that's required on those facilities. So even in the middle school, which is our newest add-on and and newest kinder and in first grade, they're they're almost in need of all new floors. And you know, we have to make sure uh we had a company come in. We don't have the report yet, but they're

055going to tell us kind of the where where our our roof stand. Um because, you know, you nobody wants to spend money on a roof because you can't see it until it until it leaks and everybody's like, "Hey, we got to do something about these roofs." You know, >> some leaks. >> Absolutely. Yeah. It's a it's it is a constant battle that we >> it you know, it depends on which way which direction the wind blows. you know, it's seriously he reveals a new leak and we have to John his guys will be up there trying to chase it down and find it. And so I again I bring all that up to say that we just are at the point where we need some major deferred maintenance um just because our our facilities are

056aging. Uh I look today the main building at elementary was built in the late 60s and so everything underneath that foundation was put there in the late60s and so you know it's things like relining um sewer pipes and stuff that again comes at a cost. there's a tremendous amount of security um and um you know cameras and uh door locks and all of those systems our our bell systems and intercom systems are some of the originals and we can't get parts for them anymore. So, you know, just over time those those things um and I these are great conversations and I want to answer whatever questions I can. >> We still I want to get here but we're not talking about >> No. Yeah. >> Is there anything The legislature, you know, used to come

057out every two or three years and they would offer incentives as schools went to do renovations and passed a bond helping with the financing. Is there anything talked about in the legislature to help us to where we may have a window of time if we want to do something like that? >> Not a peep. >> Actually, there's the the rumored more restrictive >> that's so in different areas. I will tell you that something that we've done is we've asked a company um to do a facility uh for free. They did a facility audit and >> which is our favorite cost. >> Yes, free is great and a free roofing assessment. >> So the TASMY facil that that's a great that's a great point. The TASBY facility dashboard really helps us maintain our capital assets as

058well as keep all that stuff in one place. They they are a critical part of this company is really primarily looking at like they had a a coral roofing come to put their eyes on every roof we have >> on top of every roof. >> TASMY doesn't necessarily go to that level but they look at all of our mechanical TASBY looks at all of our mechanicals and our um our you know our floor coverings and the age of the buildings and the capacities and so really these things work in t. >> Yeah. Um and Mr. Watson you bring up a good point. None of this that I'm talking about has I I'm not even talking about about a bond. I'm not even insinuating. >> What I'm simply painting for you guys is the picture that

059we can't cover the cost of all of this maintenance that is required. We don't even have enough fund balance to do it. And so we have to be we have to we have to be very thoughtful about what we're going to do. And as you'll see when I tell you the projects that I'm I I kind of have built into the budget options, it's pretty limited this year. But I wanted before we have you look at the options up for the next year's budget is look at the top 20 expenditures as it sits. These are all non-payroll top 20 expenditures. Of course, as you can see, electricity, we have to budget around 360,000 annually for that. >> We're still locked on that rate, right? >> We are. We have another 11 years. >> We did

060good on that. >> We don't always get to do good on things because it's just a byproduct of the environment. But in that particular sense, we did >> property insurance has increased about 250% over the last six years. You see that's >> folks that's just our that's just our property insurance. That's not all the insurance we pay because we have to have um vehicle insurance, liability insurance, some liabilities in that, but that's primarily our general liability and our our structural um insurance. That's a substantial cost that we did not have to pay six years ago. It it quite literally came from about $80,000 a year. And you see that's a pretty substantial increase. The next is everything in in a school building now is surrounds technology. And so the next biggest ticket item is all

061of those contracts that we have to have to provide internet and network structure and backup internet and content filters and like I could go on and on but you get the idea there. The next is our extracurricular travel. And I want to clarify this. That is not just extracurricular athletics. That is everything that we do extracurricular that encompasses FFA, >> uh, UIL academics, um, UIL sports, >> everything that moves. It is a non-curricular. So you can see that with the cost of diesel and the cost of food and the cost of entries into tournaments into robotics competitions, everything has increased. And so >> hotels, that's a, you know, pretty substantial um our bus payment that we make for our five new buses, 170,000. and then down on the list. So you see that at the

062total of those top 20 expenditures, we have $2.34 million that are essentially fixed costs. There's not one thing in there that we could go, well, we're just not going to pay that anymore because we have to buy supplies. Yeah, we could say, "Hey, we're not going to provide students supplies anymore." I don't know that that's wise because right now we can control that and our poor parents don't have to go out and spend what used to be a $100 to buy school supplies for a kid is probably $200 now. But all that stuff is built into these expenses. Um student tuition is what we pay to Angelina College for um you know for our kids to do concurrent. >> That's a good investment. >> That absolutely is sir. Ma'am >> that was that was a

063question. >> Yeah. So that's that's our concurrent uh tuition that we pay. We we may not end up spending quite that much this next year. A AC has a grant that they will we may not actually have to spend that, but I still put it in the budget because we're going to have kids enrolled and so we got to be ready and able to pay for it um if it is needed. And then as I mentioned the last thing on the list is we have to have a hosted uh data backup because we in today's environment. Jeff and his group do an excellent job at trying to keep bad people from grabbing our data. And I know it's frustrating at times when you have to do two-factor authentication and you have to uh sign into

064this and change your password for that. But it literally happens every day. It not only happens to schools, it happens to people that we u contract with. It just happened to >> Canvas which is >> we don't use anymore thankfully but somebody breached their data. So we have to host all that data in the back you know in the background so that if somebody comes in and tries to steal our data we have ability to recapture it. So all that stuff's expensive. You can see that the personnel budget, the top 20 expenditures equals 17.5 at the bottom of that page equals $17.5 million. There's just not a whole lot of room there for making a lot of adjustments. And like I mentioned that we all those other accounts um that we have to purchase again

065supplies for the classroom and we have to purchase um you know our copy machines and our you know all that stuff to operate that that stuff is all out there. U and so um anyway any questions about um that before we >> I I think just for the um and if you don't mind and I'm sorry to say this but I for for those that more importantly those watching and learning um what I talked to our our new trustees about is it's it's not that we don't have a heart to do what we want to do to take care of our employees and all of the things. we literally are confined um in a lot of our expenditures that there's there's just it is what it is and this and this is a great representation

066in my opinion of all of those fixed costs and u we want to advocate and support and help all of our employees and personnel obviously is the number one um and so my heart is absolutely with that but we are confined in a lot of ways so I thank you Matt because I think this is a really great of where we stand with >> utilities and all the things. >> The next thing that I'll have you look at is the our little short project list that is in these budget options. Um, but these are things that I feel John and I feel are critical moving forward. At the cafeteria, we currently have six wallpack units. Four are operational. two have bit the dust here recently, but it has not been very hot and so we've

067been able to maintain temperature in there. One is we're having some issues with it. So, we know we have to replace those units. Each one of those units, let's say we only replace the three that we're have to. Each one of those units are between 15 and $20,000. we get to $60,000 really quick and then we got three new wallp pack units and three old ones and they're really loud for you folks that have been in that cafeteria. You can hardly hear what's going on because they're on the wall and they're loud. And so what I'm proposing within this budget is that we replace all six of those units with a more conventional type system that would replace the tonnage that we need. Have an allnew efficient system. And the total cost that is about

06885,000. And as I mentioned, we could be bumping 50 to 60 just depending on what we were able to buy those wall packs for. To me, it's just smart money to put a new system in that cafeteria because when it's hot in August and September, it is hard to pull that. That building was is old and it's not designed to to be air conditioned. Well, >> you're talking about going with condenser air handlers and probably them down the center. >> We're actually going to use some commercial split five ton split units so we don't have to do a bunch of Renault in there. Yeah. Um, but it it would allow us to to really um get enough tonnage in there that we feel like, you know, we um had a contractor come in and look

069and and determine that they they agreed with where John was headed with that, how many tons we would need to do that. And so that that is one of that's the major project. Uh the next one is the uh kitchen 4 at elementary. Um it >> it is rough the and the tile needs to be taken out of that and we're going to go back with the epoxy type floor that we've been replacing some with just because it's durable, it's slip resistant um and you don't have to wax it and so um >> maint. >> It does. And so that that's that to me that's a have to. And the last one is we're on about a year 11 for our high school gym floor. I don't know if you remembered we did the middle

070school gym floor this year. They tell you eight to 10 years of waxing and then you have to be concerned with bubbling of that wax. Um, is it something that I want us to spend money on this year? Well, it's not my preference, but I think it's at this point it is a it is a need because what we don't want to do is be in the middle of a season and then have an an issue with the floor and there's not a whole lot we can do about it at that time. Um, of course, any of these projects y'all can say take them out. We don't want to do them. So, this is talking taking it down like we did over here. >> Yes. >> It looks great. And and and while I love

071that it looks great, it's really at this point it's more of a functional thing >> because the more wax you put on it again, you the you get that buildup and then it's there's a fine dust that creates on that as it oxidizes. And so, we're just at the point where it's time. Um assuming y'all agree with my position on that. Um those are the only projects that we have I would say major projects that we have built in. Everything else is just our normal uh maintenance budgets, our grounds budgets, um transportation budgets. Um and then everything else at that point will be uh personnel. Um any questions about those projects? I would I would love to answer any of those that you might have. All right. Of course, interrupt me anytime. What you have

072in front of you is three pages that's that have the general fund preliminary budget. This is not nec this this is not the proposed budget because we want to have this first to make sure there's not any major changes before we go into June. You have option one, two, and three. Okay. Option one, two, and three. You're going to look at the bottom of that and you will see the total amount of projected revenue and expense based on that option. So you can see all those instruct those in function those functions starting with instruction all the way through the intergovernmental charges total up to in option one to that $19,749,200. This option includes our normal step increase for every employee. Okay. >> What's the 98%? >> 98% is what I use to kind of put

073in y'all's mind. We don't typically spend 100% of the budget, >> right? >> And so I try to give y'all some frame of reference that even though we're projecting this budget, we likely are going to spend somewhere around 97 to 98% of that. Um, and so that gives you some idea of what that would look like. >> So you said this includes the normal step. >> It does. this normal step increase for everyone. Um, and then you can see the same thing for the if you'll notice the the interest in syncing budget doesn't change because that is what it is. Like we we bring in revenue based on property tax values and we pay the bill and we essentially um >> it's a I mean it's it's pretty much a washer. >> Uh child nutrition.

074The only thing that changes there is if we uh we do a different option for um compensation, then obviously that's going to change that budget somewhat because we have compensation out of that budget. Option two is going to include a $1,000 increase on every scale that was not adjusted this current year. So, what that would do is instead of just giving a one-time payment, that would be we're going to add that thousand dollars to that scale again for anybody. So, essentially non-teers because their scale was adjusted this year and then 50 cents for all hourly employees >> plus so this is step plus >> step plus the thousand >> or 50 cents depending on what matrix they're on. The third option is the step increase plus a $2,000 increase to the matrix and a dollar

075hourly raise. But as you see, that's where we start getting into a deficit pulling that in. And I feel like it's incumbent upon me to say this. I want to give our folks as much as we can, but we also have to be very careful about building in a structural deficit >> because if we if we build in a structural deficit, there's no recovery outside of reduction of staff. >> So, I'm sorry. >> And so, I'm not I'm not telling you don't do it or do it. I'm I simply want to put this information out there so that you guys are armed with that to determine what's best for our district. Mr. S, I'm sorry. I didn't mean to. >> No, no, no. I just had to get my foot in the door before I

076forgot. >> Yes, understood. >> Because I will forget. >> Um, so last year whenever we did the pay increase for the teachers, that was all state funed. That had nothing to do with the district. >> That's correct. >> They were allotted that money. It varied depend on where they were at as what they got. >> That's correct. >> And that's what they got. They did not receive a step increase at that point. They just received flat. >> That's correct. >> They didn't receive all of it because some of that was absorbent instead. >> Is it because you guys you guys charge me to present a balanced budget >> and the only way that we could do that was um to approach it just the way that we did. >> Okay. So with this option two,

077option three, I guess this is to do all options the way I understand it. Are you holding that step again to get this 1,00 and 2,000 in other places or will the step increases resume this year? >> So >> that's a non-teers, >> non teachers because you held the step on the teachers last year. No, they they resume. Yeah, they'll get their that. So, option one, every option includes everybody getting their step increase across the board >> because it was held last year. >> That's right. >> That's correct. >> So, option three, they would get their step plus 2,000. >> That's correct. And a dollar if you're >> non teaching status. Got it. >> And understand guys, this is like teachers got a significant increase. And and again, I I I was for it and

078miraculously they funded it. but they only funded that. And so we're we're left trying to make determinations about what to do. Would I love to give everybody with years of experience the same thing that we gave teachers? Well, of course I would, >> but it's just not the I mean, we only have the revenue to do what we can do >> with the principles because I thought the principles got nothing. is that >> they just got their regular regular regular regular stuff. >> So, we're good on all that now. I mean, >> yeah, they always got their stuff. >> Okay. Well, they didn't get >> outside of teachers. Everyone last year got their step. >> Teachers didn't get their step. They got their five or eight or whatever was allotted their >> years of years

079of service. >> Correct. >> So, >> it all goes together. >> Uh, no. I look at every day and it option one shows us picking up step with all employees >> this next year >> and others are increases. >> So the matter are you saying because I mean we want to help our people and we want to pay everybody what we can. So are you saying option three we would be approving a budget deficit? >> That is correct. >> Option two would be a deficit. Looks like the 36 36 in the black. >> In the black. >> Now again, as I mentioned, >> of what? No, sorry. 90 something >> those those projections are all based on the data that I have today, but that I have been as conservative as possible, but I did

080not project a large enrollment decrease. Yeah, I'm kind of curious what what the consensus is on what what do you feel like going to happen um on enrollment. So, and I think some of that's going to kind of matter too where they're at with the lottery or the um voucher system because that's a lottery. Not everybody's going to get it that thinks they're going to get it. >> Have do you know and you may not have tracked that's that's fine if you haven't but >> have they named their folks? Have they named their chosen people to receive that? >> Yes. They're they're they're making those determinations now and people are getting the phone calls >> or they're probably letters. >> Yeah. >> Or email, text. >> And I happen to see a chart and I

081I'm sorry I can't quote the exact number. I wish I had written it down, but I saw a chart of how many applications for those um uh for those vouchers uh by school district and Huntington, I believe. And it that doesn't necessarily mean that they were our students. They could have been students in Huntington or private school students. It was approximately 50 >> and we and we were less than any anybody else in the county. >> So figuring on 50. >> It was it was something like that. >> They're not all here, but >> they could be here. >> Yeah. They're from Huntington. They could >> That's right. Um and if you Miss Davis, let me answer your question before I >> were they not doing a second round of this first round. So we're

082not finished with Okay, >> we're not um I will give you my opinion about what is going to happen with enrollment and it is my opinion only. Um I will not loop anybody else into this. I I even hesitate to call it an educated opinion. We're going to see some more enrollment loss. I do not believe it's going to be as significant as it was because it is stabilized the last this second semester. it has stabilized to kind of where we we are currently. I I just don't I just don't see us maintaining all of those kids because if there are options it's a battle that we fight that um if if people do not think that education is important and they become upset the option to homechool school my child now is going to

083exist with homeschool my child potentially get some money from the state for homeschooling my child. I just don't see that being a positive impact on our enrollment. That's the only reason that I say I I I see us losing a little bit. How much? Y'all may throw egg at me and we may get the first day of school and we may pick up a hundred kids and you can join me in my office because I'm gonna be praising the Lord in there um probably having church because that's going to be good news for us. Um I just can't I don't feel confident to tell you that I believe that's going to be what happens. >> Well, I do think I agree with what you're saying. I think long-term planning and good doing a long time.

084You know, the things the decisions we make on like what we're doing with curriculum, changing that, what we're doing with hiring the right folks, paying the right teachers, giving them what they need. My philosophy is when you do that in a in a county like ours with other schools in the district. I said this to some people, I think it was to the ladies just a few days ago. At one time we were an exemplary campus in elementary. We were a mentor school for the state of Texas. When those things happen, people want to bring their kids to home. And I think I'm not bashing anybody. I'm not saying we that that's our problem. I'm not saying that at all. What I'm saying is there's that we do that we can help grow our community

085and grow our district to get kids here. We've got some builders in the area that building homes and and neighborhoods. And I think is that going to affect this budget? No. I'm just saying I think we need to keep the eye on the ball not just on the budget, but what can we do decision-wise to make us the best district in the county? >> And folks, we still have people who are if it weren't for our transfer students, >> right? You want to talk about loss of enrollment. We have a lot of transfer kids and they are calling every day. We operate a good district. We are not perfect. We have our issues that come up. We have a lot of really good teachers that teach our kids. We have a lot of really good

086principles who care for our kids >> and on down the line. >> And it shows in the amount of kids that we have that transfer into our district. People don't drive from another attendance zone to a district because they just want to. They do it because they're making a choice that it's better for them and their family. And so I agree with you. I This is a statewide problem. >> Every district in the state outside of these few fast growth districts are losing enrollment. And people saying, "Where are they going?" Well, I can tell you one place. We were just playing at Huntsville last week and we talked to them and they have a virtual school. They have 10,000 kids attending virtual school. >> Can you get paid for that? >> Yes. Yes, you can.

087But there's a big caveat to that and that's a a large conversation because now they're changing the way that they realize that was a huge windfall for school districts and now they're changing the way they're going to fund that. and and so now >> where that probably would really help >> I don't know that it will maintain that um because there's a lot of infrastructure that goes into that a lot of devices you're talking about adding a a good bit of staff >> and and where we're located I don't know that we would have the draw for that that you do in a place like Huntsville I'm going use them as an example because they're that close to the greater Houston area they they got into it at the right time and now talking to

088their people, they're like, "This may be the bear that we grabbed the hole to and it was all really good and now it may it may turn around on us, you know, and so there's some consideration." I only bring that up to say that's one of the places that kids have options to do. >> So, they say, "I don't want to do that anymore. >> I want to go K12 online." We probably have kids in our attendance zone. Uh Hallsville has a pretty large uh program and Huntsville does >> in our immediate area. I promise you we have kids that are in our attendance zone that have access to that. >> And and just a comment too, um the state as a whole is down 72,000 students. >> That's right. this year as compared to

089last year. >> Y >> and they're expecting that trend continue because the largest influx in our in our population has been non um childbearing age adults. It's just the the way that it is. So um so I does anybody have any like we have these these three options. You see there's some big numbers on that page. you see that instruction is over half of our our budget as it should be because that's the that's what we're here to do. That's the majority of our staffing is in that one function. A lot of the money that we spend is in that function. And then probably the next largest is going to be our our our maintenance and operations because that's where we have to keep the buildings on and heated and cooled and and all of

090all all of those um items. everything else. We have done our best to decrease those expense budgets. Um the last count and it's going to change a little bit before I get to I was just talking to the to Mr. Stover about the program that we use for credit recovery at Pride and at high school. Of course, we're you know just get found out today there's going to be a little bit of a price increase for that of course. Um, and so, you know, this may change minimally, but at this point, the expense accounts are what they are. Um, and we we pulled approximately $500,000 out of those non-payroll accounts to help try to offset um our loss of enrollment. >> Well, I can tell you Mr. has been crunching numbers because he and I

091had discussion at the ball game about settling leasing owning Mr. like why are we doing this? We can fight natural gas do the majority of what we need to do. So they're working I mean it's just a matter of he said I'm not asking be responsible for >> that's everything that >> it was it was >> he uncovered quite a quite a mess we were paying for that we should have been paying for and he's got and Mr. Fer told him hey man I think we can do better Mr. Sto like all ears what we got. >> Oh yeah. We we try to save money everywhere we can. >> They're going to end up save quite a bit and still have those students that they need in that egg shop to do. >> Absolutely. >>

092Some of the things that they do. >> Yep. >> So Matt because I'm slow. >> Me too. >> You have to you have to slow down back to options. I mean there's no secret you and I we we like to fuss about it together and we always get along. You know sometimes I'm way out left field and you don't like that. That's fine. I'm good with that. But if if we can, in my opinion, just me, have a balanced budget, give our teachers their staff, help these other folks some, we we don't have enough money to give everybody everything in the world, but but for our district, and here's why I say that, and I don't mean this toward us cutting the budget, but we have a lot of teachers, and you know, uh they

093buy stuff out of their pocket every single month. We don't ask them to, they do it. because they love their kids and they're here for years and that's just what they do about it. >> You know, you do that. >> And then we have other folks, what I call I call them folks, debts that give so much more to them is so much more than just what they're getting paid. They're investing in our kids. And if we can balance a budget and give them a little something and it not hurt us, that's what I'm for. But I don't there's going to be on popular or not. If we start cutting back on on those folks, even when we have to deal with the principles not getting it, people say they make more money and go

094sign up, you want to be a principal, all that junk that went through. Uh then we're going to be questioned on uh what are we spending in athletics? What are we spending on extra career? What do I mean that's that's going to come. So, >> and it's a and it's a valid question, but here here's what I Here's how. Do you mind if I respond? >> No, I'm just saying, am I looking at that the wrong way? >> No. >> Because yes, we spend money on athletics, >> but if we remove athletics >> Oh, yeah. >> You want to talk about an enrollment decrease? >> Because that is part of the that that is part of the school community. >> I totally agree. >> For transfer everything. I want to I want to give you

095guys and I think y'all all know this about me, but I want to say it be on the record to say it. I do not arbitrarily decide what people make, how much? Yes. Do I drive what goes into general supply budgets? Do I have questions for principles and directors? Absolutely I do. But we try to apply that as consistently and evenly as we can based on whatever classification of sport or program it is. And we do that because we want an enriching program for our kids that doesn't just include reading and writing, math, social studies, science. While those are critical and we have to do that, it also builds good humans to allow them to have access to this other stuff. But as you can see, when we look at what we spend extracurricular, that

096includes all extracurricular, not just athletics. >> When you look at that, it's it's a tenth >> of what we spend on instruction. >> Again, by all rights, it is. But even some of that extracurricular is instructional in nature, >> robotics, >> FFA, >> UIL, academics, >> um, HST, like there there's a whole host of things that we do that is not not just athletics because not every kid participates in athletics. We try to have something for everybody. This budget is representative of us trying to be as responsible as we can. I do not want I I never intended for the principles and directors to feel like that anything had to be sacrificed because we're not trying to sacrifice anybody. What we are trying to do is to be as responsible as we can to try

097to make as much room. Is it going to be a little tighter in places? Well, yeah. We we don't have the option to do anything outside of that. >> Everybody's seen that in their own budget at home. >> That's right. That's no different than what everybody else. >> And so what we've asked the principles and directors to pull out is just and I don't want to use the word we did not build in a bunch of fluff. We did not. But what we did was think to ourselves what could the principal or director provide to their department and ultimately to the student by having this money in there. We're just having to eliminate some things that potentially we wish that we could buy but we just we just can't right now >> or experiences. For

098example, I know just give you a specific we've asked our admin to tag field trip experiences to an instructional team rather than just um for next year just a fun day or whatever. If we're going to spend the money to go somewhere, we're just asking them to tie it to instruction. not that you can't go places, but let's just be a little more focused on our why. Um, so that was one thing. Um, example, another example for staff, we want to provide professional development, but maybe they don't go to the big conference every single year. Maybe they go to the big conference and the local conference and then the big conference. So, alternating. So, not a no, but just a a little bit more temperate than maybe what we've been able to do in the

099past >> because there's been years in our district that that some of us have worked here when it was no travel at all. You're not going anywhere. >> And you're not going anywhere because we can't afford to send you anywhere. >> And so, we're not we're not to we don't want to be on that extreme, but we have to begin to to meter that back. Um, and one of the things that legislators will say, and it really gets under my skin because they have really, maybe some of them are listening, but I doubt it. They have no idea what they're talking about. They'll say, "Well, all schools need to do is tighten their belts." I would love for them to come in and functionally show me how to significantly tighten our belt and deal with

100it. Because I promise you, this school district doesn't frivolously spend money. Do we spend money at times that we go, "Okay, next year we're not going to spend that because that didn't work out. >> We didn't get a lot of return." >> Yeah. >> But you do that in your own personal lives. You buy things and go, >> "Okay, I shouldn't have bought that." You know, that did work out. Well, unfortunately for us, we're a lot more thoughtfully than probably than you have to be in your own home because there's just not a a we can't just get the nicest uh Cadillac of everything that we would love to have. Is Cadillac even a good um >> they're good. Yeah, >> it is for this purpose. >> For this purpose. I think everybody knows what

101I'm talking about. You know, Jeff and I talk about pretty regular camera systems. You know, we started putting camera systems in. Nobody had any knowledge that camera systems were going to get to what as as a required >> like we have to have it now. And not only do we have to have it, it has to be very functional. Well, there's systems out there that are unbelievable. >> Cadillacs. >> They're Cadillacs. Listen, I've been Shirley and I have been through, you remember, we had days Saturdays where we had the general ledger open to different pages in different segments that we're saying we're going to cut 400 here. We're going to cut 600 here. You remember that? >> Oh, yeah. >> We're not going to have two principles here. We're gonna I mean, this is phenomenal.

102I've been here when there wasn't any, you know, we didn't know how we were going to make it happen. I don't ever want to go back to those days again. Ever. Hey, and personally, I was here when I wasn't sure if I was going to have a job because things got real tight and I was la kind of last man in and you go, man, I sure hope that >> hope some of those first ends leave so that I can I can hold on. And and I I don't say that to I think you guys know my heart. I I'm trying to prepare for you a common sense budget, provides you with information that you need, and then you direct Dr. Fishett and I which way to go. Option two is a balanced budget and

103it's increasing for everybody. >> Let me ask you this and you may not know that outside legislative session and I think I may have passed this before because disparity between teachers and those others came up whenever that money was >> do you think or how long do you think that will be funded for those teachers? Because if they cut that out in the next two years now you have further >> oh well there I'll tell you >> separated now between your let's call it admin I know it's not all admin and then the teacher level >> it's actually fewer admin than it is other >> because you have counselors diagon you're an admin or you're teacher for conversation purposes right I do not believe >> I know if they cut it out then you have

104now greatly increased that disparity whenever you you pull the five you pull the eight away and added a thousand over here. So >> I don't believe that they're coming in to save the day. >> I think we got to be cautious too. >> We're going to work at it. But yeah >> that I don't believe they're going to do that because you're going to have school systems that can't pay their payroll >> because we're reliant on that. You can't take that money back. And so they're going to continue to fund that. How they're going to make that up >> is the scary part. >> And to what degree I don't and I don't want to, you know, I don't have an adversarial relationship with TA because they are they get their direction from our legislators

105and they do with what laws are passed and they pass it down to us. Do I agree with them all of the time? >> No. But handy for them, I don't have to because they make the rules and we play by them to to an extent. Um, so let's for the sake of time because I I know that y'all all have stuff that you could be doing and I know this business is important, but I've presented a lot of information to you. Really, I guess what I will need is some consensus about what budget you want me to propose. Do you want me to remove um any projects to the budget? Because we're just a little over a month away from having to adopt a budget and start a whole new fiscal cycle again. Um

106and so time is of the essence, I guess. Um, you can tell me we're we want to soak on this and we can have another budget workshop. I'm completely open to do that if that's what you what you believe um is necessary. I I'm at your I serve it at your pleasure. >> So on the gym floor, I understand we're at that point, right? But you also mentioned that I guess as it starts to oxide or creates a dust >> it tends to be more dusty and I believe it to be I asked our four people that essentially it is like an oxidation of that all those layers because all those layers continue to oxidize >> and it comes through and it's a little harder to >> it is it can be slick >> that's

107injuries. >> Yeah. I mean, unfortunately, have these facilities, if we're going to have the programs, we have to >> we have to keep it up, too. Then you can't use your gym at all, >> right? >> Okay. >> Um, can we push it one more year? We can. I'll go on the record and say I'm not making any promises. U, but I'm not also not going to tell you this is dire and if we don't do it, it's going to be a disaster. I can't tell you that either. >> Mr. Absolutely. I agree with you. >> We We might not have the 30,000 next year. >> I'm not opposed to it. I was kind of >> because if you just walk in and look at it like >> but you have to know what's really

108there. >> I didn't realize how much that yell it out. >> It's beautiful. >> Yeah. We put we we we rescreen and recode those pores >> twice a year >> and it doesn't take over the course of 10 years >> and and really it's I I'm about 99% positive that it's 11 years >> because I was trying to timeline it back to when coach Seawn Jones he's the last time when he got here pretty soon after he got here is the last time that we did it. He's been gone two years now. >> two two four years >> and so I'm trying to add all that I'm saying 11 you know it's not like I keep there's no there's no record >> middle school gym >> sorry >> what was the service one middle middle

109school gym meaning when was the last time it was >> a long time before >> it was it was >> I have personally swept that floor >> and I will personally tell you that that joker still slicker house not >> whenever you swept it and it's got to be what she's talking about >> I mean that's what it is >> you could brand new clean dust mop it go find one in the closet And it was still >> I saw I saw it. So I'm witness. >> Well, I would I mean because I mean my kids are planning on coaching on it. I mean I'm sweating the floor because that's what you do. >> And that's the other thing that you bring up. >> It's so slick and you know your kids >> that can

110move are restricted by the fact that they're on a slick surface and they can no longer move. >> We we allow little little dribbers to use our facilities, not the high school gym. We don't. Right. >> But so that has a lot of traffic. So maintaining these fors doesn't just impact >> our student athletes, but we, you know, the community >> our gyms are set up too, they don't just get um sneaker traffic, they get street traffic because you come out of the stand, especially once you won or hey, maybe the other team wants to fight. I mean, we've done that, too, right? >> Um everybody's streak shoes that are nasty get on your playing surface and that's just that's not ideal, but that's the way we're set up. >> Yeah. I and again I

111propose it to you only because I feel like it is important that we get done because I don't want it to create a problem and that because you guys know that's in the full view of a lot of people all of the time and so we don't want there to be an issue and it then you know the why didn't y'all take care of this and so I I just want to you know that also included in that is the they're going to do the dance studio because it's hardwood and it's actually never been stripped. So the high school gym for has been inclusive of that >> it it is it's only when I ask him it would be double the price for them to come back and do it standalone if they do it

112at the same time they do the gym for it, you know, is all in there. Um I think that just that part's like $4,000. So the of course the bulk of it is the is the gym for >> but it's slick in there too. And it's also got some nice sequins >> waxed in hair and you know whatever else. So, >> well, we're not taking action here, but what I can tell you is my opinion. My opinion is option two and I like your project. That's my opinion. We're not taking any action tonight, but that's my take. Rest of you, >> that's my opinion also. >> And if we disagree, let's talk about what we disagree. Maybe we should reconsider. We're not taking action to know where to direct. >> Yeah. Like we of course

113we'll adopt and approve the budget um in June at our June meeting. Um this is just you guys guiding me with consensus to say do this because there's a lot that goes into this. So I have to now you know we'll go back at the business office tomorrow and we'll start making adjustments and know which one we're going to add to the budget. get text messages say, "Hey, I'm making remember that we meeting." >> I hope not. >> As much time as I've sent I've spent looking at all these lines, if it is, I that's going to be bad. >> Yeah, I might. >> Well, this this too, like I said a minute ago, it's giving everybody a little something in a time when the economy is what it is. We also ask them to

114do a little extra task because we're not hiring this person or that position specific person. >> Everybody sees it at their homes. And uh the good thing is uh we're we're adopting a balance budget. And when you can give teachers a little bit, your people a little bit >> and you can adopt a balanced budget. And that I'll say, I know you don't you don't like to hear it, but you're to be commended for that. You oversee this and your in it and we do trust you a lot, but you know I know how you are. You you live it and sleep it every think it every day. So, uh we don't want to make your job hard just because we might want something else. We all want more, but it is what it is.

115So, I appreciate all the due diligence and all the work you did to put this together. I think it was very very informative. Very good. >> Well, we we will do our best. We will get the you know, I'll have um we'll have to adjusting those matrices in the you know we can project it outside of that but we have to start making a lot of adjustments and it takes time and so I appreciate the consensus because we have a lot of work to do to get it ready to adopt in June and then roll out July 1 which is not a big time gap um and so I you know like you said we're not taking action but I I've presented to you what I believe is a um it represents fairly and adequate,

116you know, adequately what our position is um in hopes that we can maintain that. I cannot tell you what will happen the year after that. Um because we're just going to have to see how it goes and we'll have to we'll have to make adjustments as needed at that point. What I did did like hearing is that you and our superintendent discussed a lot of this. She got in too. I think that's important. So that's good. >> Well, she's got to because a policy says that it's it's on her. >> Well, it's hilarious. Yes, our conversations are quite humorous and I start to take notes and what do you write down there? We haven't decided anything. So anyway, he doesn't like my pink pen tactic and I it's hilarious. We spend a lot of time

117together. Sometimes I want to preview the notes to make sure to make sure it's what I am trying to articulate because I I want it to be um repeated, you know, >> we giggle about it, but we all work really closely together. And again, our heart is with our personnel. That's who serves our students. Our customers are our kids and we want what's best for them. Um unfortunately, we just have to work within a landscape that we're provided and we just do the best we can. But Matt has worked extremely hard preparing. Thank you for all. >> That's u I I told you that we we would do our best to make this as official for lawnmowers or anything else this year. >> Mr. S. >> Yes, sir. >> Do you think that I would

118ask campus departments to reduce budgets and then bring you guys >> equipment? I didn't. >> We do not. So, hey, that that time may you know that time's coming too. >> Some pretty good stuff and still lasting, right? Hey, we do our best to hold on to everything and they Hey, and I'll say this because John, >> I've seen some held together by getting it done. >> Hey, make it happen. John, Sean, Todd, they would tell you that they're appreciative. Their guys are appreciative of the equipment that we have because it makes them able to do some things that they don't necessarily do in other districts. And so, since you brought it up, it's I want to say thank you for for that because we have some allows us to do a job again that

119we would be hiring someone to come in and do for us that our guys save us some money by having the ability to do some >> talented individual. >> We most definitely do. >> We definitely do. >> That's all I have. So I guess the next part is up to you guys. >> I got that part. Move us on down to number seven. >> Make a motion we >> motion second. All in favor? your state. >> I wasn't