NISD Called Board Meeting 7-15-2025

001All right, let's stand please so Dr. Hassel can lead us in the invocation and pledge of allegiance. Almighty and merciful God, we ask your guidance and blessings upon this board, students, parents, patrons, teachers, and administrators, as we are assembled here this evening in the common pursuit of this great nation's wealth, our children. Amen. 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 aliance to the Texas one state. >> My apologies. I miss we switched it on you. All right, it is now 6:02 and we uh welcome to this call meeting for the North Side Board of Trustees. Before we call our first agenda item, we would like

002to just take a moment to briefly review some of our rules for conducting our meeting. The order of business for this meeting is set out in our agenda and the purpose of our meeting is to conduct board business and for that reason it is held in public. It is not a public forum and we do provide the opportunity for an audience participation. If there's anyone that would like to address the board during an agenda item, we ask that you please complete a signup sheet prior to the start of the meeting and indicate which agenda item you would like to address. The signup sheets will be provided at the entrance of the meeting room and this is so that we do not overlook anyone who would like to speak to the board. Due to this being

003a called meeting, there will not be a citizens to be heard portion today. We will review the rules for addressing the board later in this meeting. Is there anyone here who would like to sign up for an agenda item and has not already done so? >> Okay. Thank you, sir. >> Madame President, I don't believe we have anyone signed up uh for this evening. Um so that being said, um thank you all for being here. >> Thank you. So, let's go ahead and then get started today. We have our first item on the agenda for business and finance is the public notice of intent. >> Yeah. I'm going to turn this portion of the meeting straight over to our deputy superintendent for uh business and finance, Megan Bradley, and she's going to uh work through

004the first agenda item and then we'll uh talk compensation and school finance. >> Board, tonight we are bringing back to you a notice of intent to apply for federal grants. We brought this to you back in May uh May 20th board meeting. uh we are required by board policy CB local to bring forward to the board anytime that we want to apply for federal grants. We also are required to put it on our district website and so we have two new ones that we'd like to bring forward to you tonight and they are already posted on our website uh so that the public can give input on that also. So we do receive input from the public on every grant that we apply for. So, the two we're bringing forward to you tonight that are

005in your board packet are the empowering early childhood special education educators to improve student outcomes grant and that will serve um students that are 3 to 5 years old with um disabilities. And then we also have the opportunity to apply for a grant for the National Endowment of the Arts project that would support our annual Losis Arts Festival. So, those are the two that we're bringing forward to the board for consideration this evening. And it is an action item. >> Okay. >> Do we have any um motions or any questions? Okay. Mrs. Freeman. >> Yeah. Dr. Odon. Um I motion that we approve um this public notice of intent to apply for the federal grants. >> Dr. Hasso and I second it. Okay. Motion. Any discussion? Okay. All in favor say I. >> I. >>

006Any opposed? Okay. The motion is passed. Dr. Harl, good good afternoon, good evening. U thank you for joining us. Um so the next item is just really um based on previous conversations we wanted to provide kind of a just a overview of school finance um even though it's still very much um a system of constant change um and and just kind of lay down the the the foundation for how we are funded in the sense of um we're about 50/50%. So what what that means is is that 50% of our revenue comes from uh our taxpayers and then 50% comes from obviously the state of Texas. Um so I'm going to let Megan uh like I say uh provide an overview of the school finance system as it exists currently. Um and then um and

007then we'll we'll start answering questions. >> Thank you sir. So, this is an overview that we've put together and this is a joint effort between myself and Tiffany and Jake uh to bring school finance especially for our new trustees. And so, this was originally going to be a finance committee meeting. And so, we thought it was appropriate to bring it forward since we've made it a called meeting. We thought it would bring it forward just for everyone to have. And we've compiled this hopefully looking through your eyes of what are the basic information about school finance. This is not North Side specific. This is Texas Education Agency specific for the most part. There's a few little pieces we'll put in here about North Side. But so first we're going to talk about our budgets and

008what we're required to do. We have two board policies that dictate our budget process. So we have CE local which is the annual operating budget. It says what our fiscal year is end is. So we have options for our fiscal year end. Our fiscal year end here at Northside is August 31st. you can change to a June 30th. And so those are your two options that you have. But that board policy dictates that we are an August 31st year in that board policy also talks about our public our budget preparation and the requirements related to that budget prepar preparation and talks about our public meeting on budget and proposed tax rates. We will come to you um next meeting, the July 22nd meeting, and ask the board to adopt a notice date to have a

009public meeting on our budget that is dictated by that port board policy when it comes forward. Again, this is pretty standard uh around the state. And then we have CFC accounting for our audits that is requiring our annual financial require um audit that we must have and it goes into the schools first requirements. Schools first is the financial integrity rating system of Texas. That is what first stands for and it is dictated by TEA and it has 22 indicators that tell us if we're doing our job well or not as far as financial integrity and for the taxpayers. And so that that board policy goes into the details of that system uh that we look at as far as our indicators. And it goes from everything of fund balance that we'll talk about in a

010moment to class size ratios um to there's a lot of indicators in that first rating that comes to the board every January typically and um reports that out and we are in substantial compliance I'm happy to say and but that is uh a piece that will come to the board that is governed by this budget process and finance process. The board adopts three budgets annually and this is dictated by t Texas education agency also through their they have a faz rag which is the um going to resource guide is what we call the um the FRSG is the resource guide under TEA and that dictates that there are the three the three board approved budgets. So the general fund which is also known as maintenance and operations, the child nutrition fund, some districts call it

011school nutrition fund, but we call it CNS child nutrition um services fund. And then the debt service fund, which is also the interest and syncing, they're named I don't know why we have to have two of them that have two names because that makes it even more confusing, but we do. So you will hear general fund called Elmano or maintenance and operations and you'll hear debt service called interest and syncing. Those are the same names for the same funds. We have a lot of other funds when you look into our general ledger and we have a flip chart of a guide of all the different fund numbers that we use and there are a lot of those that are not board approved. They're administratively adopted. Uh some of those are related to federal funding sources

012like the title programs that come through. We have construction funds. We have scholarship funds. We have internal service funds for health insurance. There are a lot of different funds that are not coming to the board for adoption. So, that's important for the board to know. We have three main sources of revenue. As Dr. Craft alluded to, uh we are roughly funded 50% by the local revenue and 50% by state revenue. That is the intent of the school finance system is that your local taxpayers pay half of the bill and the state pays the other half. Uh we have about 2% of our funding in the general fund comes from federal processes and then we are a little heavy. Our local taxes pay for 54% of our budget where the state pays for 44%. Again, you're

013looking at for that 50/50 split, but that's a piece for you to be aware of. So this um slide is intended to show you try to graphically show you how we are funded between the state and local look. So if you look on the lefth hand side, think of that as a cup. think of, you know, the cup that you're drinking water out of. And again, roughly 5050 is what you're looking at. And so, we have this funding mechanism that if you have too much um local revenue, then your state aid is going to be reduced. It's going to be that teeter totter piece of it. And we're asked quite often, how can I increase the size of my cup? How can I get more money than that what that allocation is? You can either

014have more students. So, you have more students come in, that will increase the size of your cup, or you can do a vader. you can do the tax ratification election, get access to more local property pennies, tax collections that you get to keep here and use in your budget. So that's how you can increase your cup. Similarly, if our attendance decreases, our cup shrinks, our funding shrinks. So those are important pieces to know in that piece. So again, um want to cover on make sure I've covered everything on the slide that uh the district and state share in the cost of our basic education, which will come into the next slide. If we have higher property values, we're going to have late less state share. That inverse relationship there. And state funding is related to

015student attendance. So we staff and we have expenditures based on enrollment, but our revenue comes in from the state based on attendance. So that is a funding mechanism that doesn't quite add up either. Um we would wish we could be funded on enrollment because that's what we staff based on. question comment. >> It didn't come through, but go ahead, Mrs. Freeman. >> It's because I didn't I'm sorry I didn't push it. Just a comment. Um, Miss Bradley and to the to my fellow board members. It's not been even just recently, there's some misperception in in our community and not just there are some people that hold office that believe that had some thought that we are a recapture district and we aren't. But there seems to be this >> we're in a strange >> Yeah.

016We're in a strange piece of the law kind of at that edge. So we do have an >> um a revenue and excess of entitlement. Is that what it's called? >> Tier two >> for tier two level two. So there's one section of the the piece if I if I can wait about three slides and let me talk about that. So we are not the traditional recapture. there is a small piece of one level that we do have to buy some credits back for and I think that might be where there's some confusion. Um but we are not the Robin Hood districts of that you hear of around the state that have to um pay back to the state um large dollar amounts. >> And I know we'll talk about this here momentarily as well,

017but it's interesting how the system has evolved over the years. Um there are three golden pennies uh that we're going to need to capitalize on and we're going to need the community's help uh in order to do so because it does have to be through a voter approval uh tax ratification election to basically um provide about $15 million per penny for the golden pennies that there are three which you're going to hear uh more and more school districts uh aggressively pursuing uh like I say through through TRE. Um so um we're we're fortunate in the sense of whether it be from a bonded indebtedness and um being able to take care of debt service um to not increase the tax rate. And that's that's what we're going to be uh our concerted efforts are going

018to be very intentional to try to not increase tax rates. But we are going to need like I say to pursue fall of 2026. So about a year from now, it's capitalizing on those three golden pennies uh to increase basically the M budget of um approximately $45 million. Um and and I think that given our situation with our bond indebtedness, uh we'll probably be able to do so in and around a flat tax rate which is going to be really important uh and just trying to maintain like I say a no tax increase um to take care of like I say some life cycle replacement items but then also capitalize on those three golden pennies. And I know Megan, you're going to jump into that here in the next few slides. So I apologize. It's

019still your thing. >> Yeah. Alison, that you can do that anytime, sir. In fact, I appreciate it. Uh, so remembering the top portion of this where it says the district and state share in the ba cost of the basic education. We're going to look at the next slide. And I like to use this cake analogy as a layer cake of the layers of the funding that we receive. So if you think of this layer cake in the bottom layer is that that funding that we receive for the basic education of all students. So that local Mino revenue that we have coming from state and from taxes is meant to serve all students of their basic needs. If we are providing and I'm going to go to a very basic analogy. for providing pens and pencils

020for regular education students using that funding. We must also provide pens and pencils for special education students, bilingual students, students at risk of um graduating. All of the students receive the basic education services through that general revenue. And then we received the second layer of the cake in this analogy through special program fundings for things like bilingual or state comped or special education at the state level. And that's an additional funding that goes on top of that basic level to provide some additional support for specific students that need additional support mechanisms. But again, their basic education, their basic curriculum all comes from that bottom level for all of our students. And then that third level on this layer cake in this analogy is our federal funds. And they come in to supplant that funding that

021we received to provide even more additional supports for specific students. For example, special education. We receive, you know, we have the basic education that covers covers portions of it. We receive state aid for some of the special education services and then we also receive federal aid that comes on top of that that adds into those support layers. just for the audience and those that are listening to understand. First, I like your piece of cake because it's not a perfect cake by any a little wobbly much like um the way that this is all financed. But with given all of that's changed federally, has any of this changed? >> Yes, it has. Um we we are in a bit of a holding pattern right now on our some of our federal funding and we have taken

022steps to move our we have some grant funds that we that are very flexible um I'm going to call them local grant funds that we are actually moving some of our costs to right now for the federal funds that are in on hold. So we're watching that very closely. Uh right now we're in a Dr. Craft, do you want to add to this? It looks like you want to. I'll let you in. So, so there's a there is a uh initiative to uh very uh strategically not fund um bilingual education um some professional development to the tune of about $5 million. And there's five chapters to the title program that we're, like I say, as Megan articulated, we're closely watching. Um, we're going to hold. And the reason we're holding is because these are instrumental

023services, educational services that are provided to students that we absolutely must must tend to. Um in the event uh that the for whatever reason Congress doesn't pass this next budget um we will like I say very strategically work to ensure that those support systems are stood up but it will come at the cost of using the general fund. So again, these are federal funds um across title one, title two, title four, and I believe title five if I'm not mistaken. um that we're going to we're going to propose with this fiscal year of 20uh 26 budget to take care of these services knowing that um we may have to absorb that into the general fund depending on what happens this congressional sess session um come October 31st um which is once again kind of a

024tough pill to swallow, but I tend to believe that um through congressional action um there's going to be a compromise. Um uh it it may come in the form of a continuing resolution. Um we'll we'll see. But but we need to hold steady in in my personal opinion uh on this because like I say uh there are a lot of students that we need to tend to their needs that like I say are heavily relying on these title funds and so we're we're prepared with this budget um to take care of students and staff. So when we received the word of the federal funds that I'm sure all of you received and saw the news articles um there was a lot of panic throughout the system not north side necessarily but just federally you know

025throughout the whole nation of do you react to that hold in funding and we have chosen not to react yet. So we want to hold um make sure is there going to be any change in funding before we discuss any changes in programs. So, right now we're funding that locally until we hear differently. Trying to take the we want to be consistent for our students and not knee-jerk for that type of news. Great question. Okay. Next, we're going to talk about property taxes. Uh property taxes is uh a hard conversation uh because even if our tax rate stays steady, if we make no changes, a lot of our constituents tax bills will go up. And that's not from action of our school board, but it's from action of the Bear County Appraisal District. And so

026a lot of our taxpayers do not understand. They just see their bill and it goes up and they want to know why. So that that property value piece that is set by the Bear County Appraisal District. We have no control over that. Uh it does it does affect our funding and we do not find out what our certified values are for probably another 10 days. It's usually around July 25th. We're waiting we're waiting anxiously for that. That is a piece we cannot finish the budget process without that information. But that value, that assessed value is what we apply our tax rates to that the board adopts the tax rates the board adopts to that assessed value. So it's important to know that a piece of it it comes from Bear County, a piece comes from

027the action of the board and setting our tax rates. There are two tax rates the board sets. There's the L, which is the general fund and the INS, which is the debt service fund. And we have those rates. um here showing what those two rates are that are currently set by our board. Those rates um we will ask the board to propose the next year's rate. It's at the August 12th meeting and to adopt them at the August 26th meeting. So for you to prepare in your mind of what we will be looking at, but we have to have those values first. Um on the debt service side, the INS side, it is truly a the calculation sounds easy because we have but we have to wait till we get the information. But you're looking

028at what is our debt service payment based on the bonds that we have passed in the community and what is our values and you just basically divide those numbers and that is your rate. So that one is is form and under the formula it's pretty easy to calculate the MO is a little more difficult on on that side of it. U but once we've passed a bond we are we are set to we have to pay that bond back. So when the bond has passed by the taxpayers and we go and sell the bonds then we are indebted to pay that back through that INS tax rate. So that whereas the emnos rate is a little different where you don't have that piece. Now we're going to go into the golden pennies discussion. So here

029here is our look of the golden pennies. So you can see our emno tax rate is the um 66.94 cents. There are three levels of pennies as we look across those. We have our our tier one the green pennies and that's our MCR if you've heard that rate the maximum compressed rate so uh so tea tea actually helps us set that now they haven't always done that but now that we have gone to a compressed rate you may remember the days when our m rate was over a dollar usually about a$14 and that has been compressed through the years of um taxpayer relief at the legislative session to bring that down and in theory we get that made up in state aid and the formulas do show that but it's always a question of will

030that always be the case as it gets compressed further and further down will the legislature continue to pay for that compression for us so that's the tier one um the green pennies here on the left hand side and then the tier two there's two levels of tier two so the tier one of I'm sorry level one of tier two is our golden pennies so that's the one that Dr. Craft said that we we are currently uh we have five of the eight available golden pennies that the board has adopted. At the initial point of compression years ago, the board was able to access four of those golden pennies without having to go take any action other than voting and adopting those four pennies. Almost everyone in the state did that. And then a couple of

031years ago, the state came back and said, "You can grab one more of those golden pennies through board action." our board elected to get action um to get access to that additional golden pennies. Those golden pennies um come to us at a premium. We get a lot more revenue uh for each of those pennies than we do for the green or the copper pennies. So, we have three more of those golden pennies that we could get to through a tax voter approved tax ratification election. If we go that route, the board would have to approve it and then the taxpayers would also have to approve that. In addition to those golden pennies, we have the ability to do um copper pennies, and there are nine of those copper pennies that we could still have access

032to. Those are about half the value of the golden pennies, but they're still it's still money that could come to us. uh as you know and as you look around the state and you go to your trainings SLI and TASBY trainings you'll see that there are many district that have districts that have voted in all of these pennies and that's how they are able to fund a lot of the items that they are able to fund within their general fund that we currently do not have access to that revenue. Any questions on that? Yes, Miss Freeman. >> Um offhand do you know um how How much each golden penny is worth to us? >> It's Yes. I'm sorry. Keep on. >> No, that that would be I mean if we if we I'm sorry. How

033much? >> $15 million. >> It's it's it's roughly $2 million per penny. So if we were to capitalize through, >> like I say, a voter approved tax ratification election, three additional golden pennies, it would yield approximately $45 million. it. Um they calculate it based on WA the average what weighted average daily attendance and last this current year that we're in fiscal year 25 that was $98. With the new legislative session it's going to go up to $129 per watt. So it does change as that guaranteed yield changes and those copper pennies are $49.72. So roughly half of that amount that we receive access to. Um want to answer your previous question, Miss Freeman. So if you look at the bottom of this that um green says excess local revenue above entitlement. If if our calculation

034of that MCR goes above the level that the state believes it should based on that compression calculation, they make us buy back attendance credits to send some of that back to the state. So I think that's where some people think that we are in the true um Robin Hood and we're not. that that's a different kind of calculation piece at that tier one level one level. As you look across the bottom, the tier two um level one, you can see no excess local revenue. That is one that the golden pennies, one of the great things about golden pennies is there is no recapture at all. And then if we were to go to the copper pennies, there is um that recapture piece that could fall into that. And we will be coming back to you.

035We got noticed today that we do fall into that um excess local revenue and um area. We had actually received that letter probably about two hours ago saying we will have to come back like we have every year for the last how long, Tiffany? >> Three or four years. Um yeah, and it's it's a it is a function of our property values. >> Our next slide. These I'm not going to go through them. Oh, I'm sorry. Is there a question? >> We have one question. There's Dr. Har. >> There we go. >> Well, actually it's three tied to one. Um I missed How much are copper pennies worth? >> Uh 4972. >> 497 >> and they were 4928 I think this current year >> and it we also have would have to go on a

036out on a TR for that as well. >> Yes ma'am. >> And um just can you summarize the process to go out on a TR? I know it's an elective process, but what are the three or four or five things we need to >> We first have to do an efficiency audit, and that's fairly new through a um fairly recent legislative session that before we can go to taxpayers, we have to prove to our constituents that we have gone through this efficiency audit that we are doing what we can locally to um save the district money. So you go through the efficiency audit first and then the board would need to take action to actually well first you adopt a tax rate that's higher than your current tax rate. So you go ahead and adopt

037that tax rate that you want it to be at and it is above our allowed tax rate which that that starts the election to the taxpayers and then we have to go out to the taxpayers just like we did a would a bond election and put it to the voters and if the voters approve it then we receive the revenue from it. If they do not we get pushed back to that rate that we um are allowed under current law. Is there an added expense to going out on a TR? >> Uh as far as the election cost are concerned. Uh no, not necessarily. Um it an election when you call an election there are obviously uh expenses uh associated but um whether it be a bond election or a TR or a voter approved

038TR um Vader if you will um no uh and we will be able to capitalize on um the general election If the board so approves November of 26, it it will be a a pretty large election. So, um spring usually cost us a little bit more uh just depending on um board elections or or a bond election. But um we're we're going to have to start working pretty hard this fall of 25 in preparation for the fall of 26 and just educating and communicating, articulating uh the need. Um I think that it's going to be real close as we start talking about this upcoming fiscal year budget. um the three golden pennies uh if the board elects like I say to go out uh will very very closely uh come to balancing a budget um

039which is where we're going to need to be a year from now. >> Mrs. Bman um Dr. craft. So, this past legislative session, the the bill to um adjust the parameters of the approval for a a bond or a TR was not approved. >> Yeah. So, we we still have the ability to go out in the spring. Um, there was proposed legislation uh to make everything consistent with the general election, which would be November 1st, 2nd, 3rd, whatever whatever Tuesday that falls on. Uh, but that that's that's not the case. >> I guess that's not what I was at. >> Okay. Sorry. >> I was speaking to the um there was a bill that we would have to be approved by 60% ority, >> right? They called it a super majority of the public. that

040did not pass. Do we see that coming back or do you see that coming back in this special session or is >> I think there's definitely the appetite um particularly for school districts. I don't it's it's not on the call for the special session which is going to uh commence on the 20th. Um but typically what happens with legislation is is if it's proposed in say the 89th um you you definitely see it in the 90th. Um so do I think it's will do I think it will resurrect itself? Yes, absolutely. >> Yeah. My question was about the special but it's not >> No, it's not on the call. Yep. And uh once again uh 30 days um is really their only opportunity to do as much damage as they can possibly do. Um I

041I think with this special starting on the 20th, uh there will definitely be and and rightly so uh uh flood victim relief and that will be about uh all they can accomplish other than they're going to redistrict and that one you can take to the think >> I have a question. Um once we take those if we were to get three pennies then we'd be capped out at the tier two >> and then are there districts to your knowledge that are capped out at tier level two >> also there have >> what happens to them >> that there are districts that have gone out for just the golden pennies. There are districts that have gone out for the whole thing. Um there's districts that have gone out for 15 of the 17 cents. So there's

042there's everything in between. There really is. Um I think the majority have either not gone out for them or have gone out for all of them all all the way through the golden I mean through the copper >> and we might >> but we can do an analysis of that. I've seen that report many times of where districts are. So we can pro when we get closer to that consideration. We'll definitely be bringing a lot of reports to the board of you know especially neighboring districts where are they what have they they done? Um there was a timeline for this and board books. So if you want to go back to the board docs from October of 2024, there's a beter timeline there and we'll again we'll bring that back probably next spring as we

043start talking about this again. >> So once you use all these levels, right, then you're done. Do you ever get those pennies back? How do you put them back? >> Oh, do you how do you give them back to the state? Like you want to say you want to reduce your tax rate >> once you use five. Like could I just say how do we go back to just using one? Like how do you is there >> you can adopt a lower tax rate. I don't know that I've ever seen anyone do that. >> But you could. >> Yeah. I I really think that >> look looking forward longitudinally planning that the three golden pennies and it's it's a balance, you know. It's how do we take care of our community and the taxpayers and

044and not um not incurring uh a significant financial implication but yet still be able to provide a level of academic services and support um to be able to get there. And I I I really think that our goal is going to be to try to provide a combination of the three golden pennies through Evader and enough of a bond to be able to take care of maintenance and operations, HVAC systems, uh some school remediation um work, uh because we we have some aging buildings as you all know and and um th those start presenting challenges if we don't strategically work to get out ahead. Um and so it's going to be a combination um again next October, not not this October, but next October. um to be able to um balance the need with um

045taking taking care of our community and and taxpayer. And I I think that we can I think don't hold me to this, but I think that we can probably get there. Um but we'll have to have our communities help. >> Moving on to the next slide. So >> has one question. I'm sorry. >> So I was trying to Last time we were talking about this years ago, um it seemed like North Side had one of the lower tax rates. Um like Carale I think was number one. And then so um if we decided to go out because of all the efficiencies that have occurred that the district has done to this date, do you think that the audit would be favorable for either copper or gold? Yeah, I mean I I can say this that

046um all things considered um we're in a very very solid financial situation. Uh we're very stable. There are some things that we've got to be aware of um in the sense of I mentioned the title funding um longitudinally thinking forward uh that we're going to have to be probably a little bit more conservative with. But I do think that as a result of the board's action, we're going to be able to really put a big dent in that $100 million deficit budget. uh that was we're we're obviously navigating this fiscal year. I I think that's going to come down significantly. Well, I don't think I know it's going to come down significantly as a result of the hard work of like I say um well, just a cumulative team effort. Um will we be balanced

047going into this next school year? I no. Um, and then that's where I again I come back to I think I think we're going to have to ask for our community's support. Um, that's that's what I foresee in the the crystal ball at this point. >> Dr. Harl, um, several of the things that the auditors that you hire to do the efficiency audit, um, several of the things they look into are class size ratios, um, the the staff funding, the trends that we showed you in those slides. those are the type of things that they look into and compare you to other districts. So, I I would look forward to that comparison. I do think that is um useful information to to have. >> Yes. >> Yeah, absolutely. and and we we've got some work

048to do um you know as we start this upcoming school year which is just right around the corner um along with talking about a bond election a a uh vader um we're we're going to have to look at some efficiencies ourselves and we're probably going to have five campuses that are going to be less than uh 300 students and so we're going to have to take a real close hard look at do we consolidate these campuses knowing that, you know, they're they're a they're a staple in the community for the betterment of all 100,000 students and doing so by garnering efficiencies. And there will be some efficiencies. And that's not to say that I'm not one that will be the trailblazer of closing campuses, but there does come a point in time where you have

049to look at does consolidating and closing make it a better environment, learning environment um and setting for not only the students that are involved in that process, uh, but the overall good of the district. And, and that's that's going to be that's going to be a crucial conversation coming this fall that we're going to have to look at. Um, because they're just there are several campuses that they're going to be small and they're going to be inefficient, similar to what other school districts have already worked through. And and I'll say this that the efficiencies gained will have to far outweigh um will have to far outweigh. We're not talking about a couple hundred,000. Um the pain associated with proposing to close a a campus. um critical conversations, difficult decisions. >> In experience, uh usually by

050consolidating a campus, a smaller campus with a larger campus, you typically can garner about 1.5 to$2 million in savings. Um, and then there are some other uh benefits, but but it's it's difficult to put really a price tag on it in the sense of you've got to think about, well, what happens to that campus? Do we board it up? Do we sell it? Do we uh try to repurpose with say an early childhood uh development center? I mean there so it's kind of difficult Mr. to get to a this is what we can garner as far as hard savings. But then that's the piece that is somewhat um a little bit less tangible is what then happens with the campus. And that's really important uh for our communities because what we don't want to do

051is we don't want to board up uh a campus without a plan >> and that's going to be really important. >> Mrs. Freeman, >> um so you brought up a question I hadn't thought about before or comment regarding what is actually in the efficiency audit. So the efficiency audit audit would that we would need to be approved to go forward with a um to be able to go to the voters with a VATRE um in that efficiency audit. Then we need to be cognizant from from what I hear as we go into this budget as to what might be looked at in an efficiency audit. >> Yeah, absolutely. I I I I think that the the efficiency audit is going to demonstrate our financial stability, which I feel very confident that it will come out

052very positive. But I also think there's going to need to be a concerted effort, very deliberate effort of demonstrating and articulating to the community what have we done to become more efficient. Um i.e. reduction of administration staff, um class size ratios. I mean, all the things that have have really transpired over this past spring. Um because what we're going to need is enough voter confidence to realize they've done their part. I guess where I was going with that, we we have a lot of discussion about um our general fund and and the amount in our general fund and the recommendations and such and so that would be part of that. >> Oh, absolutely. Uh and like I say, that that's the that's the good thing is that we've got a general fund uh balance of

053three months of operating expenditures. um which I will argue that that's really what especially a district of our size needs to have for cash flow purposes etc. Uh it's not required. um there is the opportunity to go to two months, but that that starts to get um uncomfortable and and so like I say, we're fortunate as a school district uh to be in a financial situation that it's it's pretty it's it's it's pretty stable. Um, but we're going to have to take some really concerted efforts uh through decision-m here uh over the course of the next several months in order to be able to ensure and and and create sustainability um going forward because the one thing that I I can say is while yes, there's a special session um House Bill Two is I

054mean it's engrossed. it's it's in the books and it fell way short of really where we needed it to be and of course the other 1100 school districts across the state of Texas. And so there's not going to be um I guess there's not going to be this this um influx of new revenue uh definitely not coming from the federal uh department of education but nor the state. And so, uh, districts like ourselves are we're we're going to have to figure out the way forward for the next two years. Um, knowing that there is this initiative that's still looming, keep in mind for the 2627 school year that it's going to be in the form of using public dollars to privatize education in the form of an education savings account. That's what our legislators have

055done. >> Dr. >> Just real quick, um just for us to start maybe some pre-ereading or pre-learning about school closure. Um any information that we could start learning about and um and I've heard all kinds of things. you close schools and then charters are allowed to have first bid on them. But I don't know if that's true. I've just been hearing. But I would really like and appreciate to have information on uh school closure. >> Yeah, absolutely. For so from a legal standpoint uh anytime that we um the board elects to potentially sell a piece of property first and foremost. And again, this is legislative. um you have to you have to provide the opportunity for a charter school uh to to basically acquire that that that property. Um and some do and and some

056don't. Um but but yes, that that that is very intentional legislative. Um um well, it's just that's the legal parameter. Uh and then if there's not um a bid or uh fair market value offer, then then we have the ability to decommission or sell a property or uh go about um a different avenue. But yes, charter schools first and foremost have the priority uh for any campus uh that is going to be declared in in essence excess um to the district's needs. ready to move on. >> Yes. >> Uh so this is a list of the types of spending that we can have from the general fund from maintenance and operation fund and I'm not going to go through them but you know what most of these are. Most of it is you know salary

057and then utilities. So when you you can very quickly get to you know the basic supplies but our most the things that we have the top three line items is the top sorry top four line items are probably the most um expensive items that we have there and what I want to point out from this discussion is Mino is really anything to operate our educational needs but then we move over to the INS which is the debt service and it is very limited we can only spend the tax money that is generated for the INS side on bond payments and related items. So you cannot use INS fund balance or funding tax revenue that comes in to pay for the educational side. So we could use MO over on the debt service side. It can't

058go the other way. So that's an important distinction of of how you can spend the money. Now I wanted to show you a Texas Education Agency creates a financial coding structure that all school districts in Texas must use. So they dictate the way we report, the way we spend our money so that they can run comparisons. And it's and it's good it's good for us too because we can run comparisons. And what I wanted to really show you on this piece, um there's a few of these this long 23 um digit account code because it is long. Uh but the first three digits are the fund number. So if it starts with a one one a 100 fund, that is a general fund item. If it starts with a 600 fund, that's a construction fund.

059A 200 fund is a special revenue fund. So that tells us the type of funding being used when we pay for an for an item. The next two digits is the function code. So the function code tells us the purpose of the transaction. Is it instructional? Is it transportation? Is it school nutrition? Those kind of things. So we can run reports on any of these specific pieces is really what I wanted to show to you. If you wanted to see some data, um you'll now know from looking at this what type of reports can we run. The next uh four items are the object code. And so our object code, if you think from accounting classifications, that first digit of your object code tells you if it's an asset, a liability, fund balance, revenue, expenditure,

060um those types of items. That that first digit tells you that. And then the second digit of the object code helps further define that type of transaction. For example, uh on that object code, a 6,100 is anything related to payroll. So 6,000 is an expense. The 100 means it's payroll. A 6,300 code is a supply item. So, it's an expense, a supply item instead of payroll. So, again, that's how we're able to get to different levels. And then further down, I won't go through all of the codes, but the organization code tells us where we're spending that money. So, most of us think of the organization code as the U campus code. Every campus has its own code, but then we also have a code for transportation. We have a we have a code for

061the board of trustees. Uh so when you go to traveling you have your own organization code that all of the different departments have that we can we can run reports those that way. So there will be times as a board that you may say um give me the total cost of and a famous one is football. What do we spend on football? We don't code football. There's nothing in here. We have athletics. We can tell you what we spend on athletics. We can tell you how much we spend on athletics at a specific school, but we do not code for specific sports. And so that's a it's a challenge um when we're running reports that we are dictated in how we code things and that's how we can run the reports for you. So I

062want you to know those type of questions. So if you ever call Tiffany or I or Julie and say, you know, can you run whatever you're looking for? Sometimes we can, sometimes we can, and not all based on this structure. Um, if we know a vendor, we can look at it by vendor name. So, there's different ways to run things, but it's not always as easy to get to things as you might hope based on this funding structure. But, all of the school districts in Texas use the same one. The good news is it allows us to um run reports that can compare all of our 6100 object codes to every other district in Texas. And you can divide it by student population and get averages and things like that that we can look at.

063So now we're going to talk a little bit about fund balance and why it's important. So specifically for the general fund, um what what is fund balance? And this is true for all funds, but it's the total accumulation of your surpluses and your deficits. You can think of it as a savings account almost. It is what's left at the end of the day after all your revenue comes in. You pay out all of your expendit expenditures. The net of those is your fund balance. And every year at the end of the year, you either have a surplus or a deficit. And you can you can equate this to your personal checkbook uh that at the end of the year if you brought in more revenue than you spend out an expenditures, you're going to add

064to that fund balance. You're going to add to that savings account. If you spend more than you brought in, then you're going to take out of that savings account or that fund balance. and you hope that you had fund balance to be able to cover those those areas those times when you have a roof leak and you need to get something done that you were not expecting to happen. So fund balance is not intended to be used for reoccurring cost and I think that's a very important piece when you go through superintendent certification courses they they tell you that and they repeat it and repeat it and repeat it. You never use fund balance for reoccurring cost. If you have excess fund balance that you've built in over time, it's okay to use it for

065one-time cost for that roof leak, for example, but you don't want to the reoccurring cost once you pay for it one time, you keep paying for it in future years. And so, you don't want to use fund balance because eventually it would not be there for that purpose. Um, why is fund balance important? It is there for cash flow. Uh, that just like I talked about that um that when you have an when you have a an item come up, an emergency that you need to pay for, it's there for you. We have our state funding that comes in uh it comes in roughly equal through the years but there's a couple of months that it's not the same amount of the state funding and then our tax revenue of of course comes in in

066January time frame. So in those times when we are not receiving revenue in we still have to pay our payroll every month. So you need to have fund balance to be able to cash flow those items. So that's a reason why you want to have it um there to to to have it available. How is it reported? We do have a board policy about fund balance also. Board policy CE local uh defines our fund balance and what the expectations are from the board about fund balance. So you can read that. There are five categories of fund balance. There are pieces that are non-spendable and restricted. Those are basically required by a a um arrangement that we have. It can be in grants. So like your federal under federal funds when you have the fund balance

067uh if you've been received the money it cannot be spent for any other purpose than the purpose that's there and so that makes it to where it's uh restricted for that purpose. The fund balance that we're usually looking at are the assigned fund balance and the unassigned fund balance. Unassigned is can be used for any purpose that the board deems appropriate. So that has no requirements to it. The further you move from the right to the left in that list the more restrictive they become. So the assignment, Dr. Craft can assign fund balance and it's reported that way in our audit report. So you'll see it in that audit report. The board can commit fund balance. So when you approve a construction project for example, you're committing those funds when you approve that GMP. So

068in that construction fund, that would become a committed fund balance for that project. So with the board action, how much is needed in fund balance? The recommendation is three months of your operating expenditures is the recommended amount that is reported in our first report that we talked about earlier, the financial integrity rating system of Texas. Um, and they they benchmark us to that three months of operating expenditures. We have one question for >> if if it's a positive variance. If we had more revenue than expenditures, it does go back into fund balance. But if it we had the other way like we did last year, we spent $38 million more than we brought in, then it takes out of that fund balance. It's a great question. And the last line here is how is it

069replenished? It's exactly what we just talked about. So that if you have that excess of revenue over expenditures at the end of the year, it does it replenishes that fund balance. If it's the opposite, if you had deficit spending like we did in fiscal year 24, it reduces that. Um fund balance is something that our bond rating agencies look at. And so think of it kind of like a credit score. If in your personal life, if you're going to go out for a mortgage, you need your credit score to be high. If we're going to go out for a bond election, we need our fund balance to be high to be able to report back as a it's a measurement of how solvent we are. Do we have the money to pay our bills or

070not? So, that's a important piece to look at. Um, see if there's anything else. Our our board has um has had the assigned pieces for that instructional continuity. That piece is an assigned fund balance that our board has done. Just right. Any questions on fund balance? And our last slide on the overview of school finance is our and our annual funding challenges. Um legislative year. So every every other year we get surprises that come through the legislature that we have to work through. And so that's not a surprise because it is every other year something happens to us legislatively that we have to work through. Uh we talked just earlier today about there's still so many things that we have not gotten guidance from that we have to wait for TEA to come out and

071define things for us. Um which makes it very hard uh in the budgeting process of if we're not exactly sure what we have to do with some requirements. Um we have to wait for that guidance to come. So we have to be very careful like mathmies for is one and we're going to receive some additional revenue and with that revenue we're expected to take and send our teachers through mathmies. Well we've got to make sure and budget expenditures for mathmies even though we don't really know the rules of those mathmies yet. So we don't want to just record the revenue and not put an expenditure there. But we're going to be estimating that expenditure which makes it hard on the budget process. uh other funding processes uh uh challenges um bond funding our aging facilities

072as Dr. craft talked about. We have HVAC, roofing, parking lot repair needs. We we have historically paid for our bus fleet through bonds. We have paid for our technology, our computers through bond funds. And so all of that is a consideration as we move through our budget pieces. If we were not able to pass a bond to have that go through the INS, that those items, those life cycle replacements would need to come to the general fund. And so that's a consideration as we work through that piece. Also, our enrollment in ADA decline, as I talked about that cup, that cup size of our overall funding as we consider if we continue to see declines in enrollment, our revenue will shrink. And so, if your revenue is shrinking, your expenditures need to shrink too, just

073like your household budget that they need to keep in line with those. So, we have to watch that. Also, our inflationary cost. We have seen large inflationary cost. Um, Jacob would talk can talk to you about the cost of these ceiling tiles, how they have like doubled in the last two years. U, so all those things that he's having to monitor that are additional expenditures without additional revenue that come in. And then employee compensation, which is our next um agenda item that we're going to talk through, uh, that we want to keep a competitive salary that we want to make sure that we have teachers in every classroom. And then our health insurance cost also we have been very fortunate to keep our health insurance cost fairly flat or at least the cost to employees

074flat. Um but those costs traditionally rise by about 10% per year as we see with other entities. So those are some of our funding challenges. And and the last two bullets are are really important to just kind of hit on. Even though I I think it's safe to say we're seeing inflation somewhat coming down uh or subsiding a a little bit, um the cost of building facilities is very expensive. um to the tune of $7 to $800 per square foot right now. Um particularly in in this particular region and you know we we can talk about the price of steel. We can we can talk about the tariffs and copper. Um but it it it it is definitely having an impact. Compensation is really important which we're going to jump into I know next in

075the sense of I mean we are a human resource um operation. Um, in fact, 88 to 89% of our operating budget is going to be a result of compensation and and benefits. Um, the health insurance uh world right now is um tumultuous. Um, we're going to try to work hard going into this next school year to ensure that our employees don't feel that and don't see that. But it it is is rough right now. Um, and when I say rough, anywhere from 8 to 12% uh increases. I know that TRS just uh released their rates and it's it's a 10% increase. Um, so we're balancing all of all of these uh pressures right now and um and we've got to get it right. I mean that's that's really ultimately what it boils down to is

076uh how do we ensure that we are like I say in a financial situation that's sustainable and the next several years um but then also uh ensure that we're taking care of our students the programs uh the opportunities which we will remain very very proud of and then also remain competitive and in taking care of our employees. Um, it's a it's it's definitely a a balance. >> Any other questions on just the basics of school finance? This was a very quick overview as you've heard us talk about. Um, you know, just the summary of finance calculation is very indepth and maybe someday we'll go through all of those pieces with you, but I don't want you to fall asleep. So that moves us to the next item on the agenda which we have compensation. >>

077Yes. >> Megan, I'm going to let you just >> started. Okay. Wonderful. So we're starting off with a piece that you've seen um multiple times now, but we want to make sure we we bring this forward as we look at this plan. uh if the board adopts a compensation plan this evening, which we have this item for action, uh we we consider this our actual plan and we'll post it on the website. So, we'd like to show what we've done historically for the last several years for compensation for our employees and showed the history that we have um continued to invest in our human capital through the years. as we brought last time uh as we looked at House Bill Two and the new money that's coming to us. These are the three aotments that

078we're looking at trying to stay within uh on our in our funding. Uh there are some additional aotments that are not included here like school safety uh but we also have increased expenditures for those items that are coming through. So uh there are some additional increases outside of threes these three but these are the three that are intended for staff salary or do not have strings attached if that makes sense. So we have our new teacher retention aotment or we call it a TRA and that is the teachers with three to four years of experience getting $2,500 pay increase and I'll show you that in detail on the next slide. And then the teachers with three or more years of experience, classroom teachers with a $5,000 pay increase under the TRA. Again, this this 27.4

079million only covers the cost of the pay raise itself. It does not c cover the cost of the benefits related that we must pay for. That's an additional $3 million that has to come from somewhere else. Um the support staff retention aotment is the um money that was provided for us that could go for payraises for anyone in the system other than administrators. So we had previously looked at this um I'm sorry and it's calculated uh that calculation and I'm sorry I lost my my notes here. That calculation is $45 per adjusted ADA is how that's calculated. So it's calculated based on student actually enrollment and attendance. So that's a strange calculation to tie to a pay increase, but that's how the support staff retention aotment was calculated. So we had previously taken that dollar

080amount and divided it by the number of employees on a weighted basis of the teachers with less than three years of experience and all over other staff members other than administrators. And that's how we got to the 1.28% general pay increase that we brought forward last time as a recommendation. We brought that recommendation forward as being very conservative to be able to use that next allocation that we received, the adjust a lotment for basic costs, the ABC that is calculated at $106 per enrolled student. So, a different calculation still um and knowing that we have to pay the benefits for the top two allotments out of that ABC cost. there was no funding specifically for the benefits cost related to either of these salary increases. So we had brought that 1.28% to the board um

081as spending the first two aotments based on the calculation available to us and planning to take the benefits cost out of that from that ABC. So I wanted to remind the board of what we had brought previously and the funding that is available to pay for pay increases and other things. this aotment for basic cost. One of the things that's in the law is to help pay for property insurance increases and transportation cost and it is truly meant to cover utilities, things like that. So, um was not written into the law to pay for payraises. It is for benefits cost related to pay payraises. But um if you when you read the the purpose of this allotment and the way we would have to code things is we would if we choose to use any

082of this allotment for payraises, we will have to code other things like transportation to this aotment to be able to use utilize this a lotment. So this is the new revenue coming in. So I want you to remember the 41.72 million. >> Yeah. And let me let me let me speak to the ABC. because I think it's really important and I think it's important for the general public to understand that the way that this ABC allotment came uh to be was one of our very own representatives. Uh, not to get political, but Diego Bernal, who served as the vice chair of the House Public Education Committee, was adamant that this be inserted as additional funding uh as House Bill Two uh was making its way uh through the um sausage making process. It was really

083really important for him uh along with some prek and bilingual support uh funding that this gets put in place because in essence what this did was it was a substitute for the increase to the basic aotment. And so, um, very, very proud, very appreciative of, um, Representative Bernal for standing his ground and and and making this making this happen because, um, it wasn't by coincidence and it took a lot of work to get it there. And while yes, it's is it enough? Well, no. Um but this was really really important uh to take care of um these additional inflationary costs and employees as we uh really work with compensation planning um to um to take try like I say try to take care of people and representative Bernal recognized that >> Dr. Harl kind of

084a totally different question. So, um and I'm still a little confused um because I asked about the Learning Tree employees. Um families pay for Learning Tree after school. So, money is coming in the district, but we're using this budget to pay for them. Where does that other money go from learning tree >> to pay for other things in the district? >> So, it goes to pay for other things in the district. >> Yes. in my >> and and I'll speak to Learning Tree. Um great service we provide to the community. Um but we haven't been balanced and so we're working through this budget process to how do we become how do we become more balanced? Uh it's like I say it's an important service that we provide uh families and particularly students that yes need

085some uh additional assistance but then also the working family that they they can't um get free at 3:15 or uh 3:30 in the afternoon uh to take care of their their children. And so we're we're we're working to try to just break even in essence. >> Yeah. So that's where I was leading up to. So the money coming in from learning tree is still not enough. >> Right. We we still have to supplement. We pay for the utilities, we pay for the water for the restrooms, toilet paper, you know, things that their supplies they're we were paying for other pieces overhead. Yes. So, so, so there they're um right the salary cost is not the only cost of our injury and I do think that's >> programming costs, right? >> Yes. Yes, ma'am. >> Well,

086I want to thank give a shout out to Mr. Brennan. Thank you. >> Yes, >> that was uh very needed and I think Mrs. Freeman, you have a question. >> Yeah. Um Dr. Craft, so on the support staff retention aotment. Um the criteria here where it says no administrators, did the did the legislation actually specifically say um no administrators or is because I thought that that was just for everybody else. >> No, it's it's it's it's written into the legislation. It's it's it's outlined in House Bill 2. And you know, I I'll make the argument um without splitting hairs. strong administration and leadership is equally important um to a really strong classroom teacher. and and and so you'll see here momentarily that while it doesn't specifically outline and cover um compensation for administration uh we're

087you'll see here momentarily the recommendation is going to be we're going to include administrators >> we have to add additional funds that it can't come >> that will come from the general fund >> ma'am yep But it can be come from supplanting that a lotment for basic cost. >> So the next slide shows our compensation plan options and we put these think of them as columns. So the far left hand column is the teacher recent retention a lotment. The board really doesn't have a choice on that. That is what they're going to that the employees that qualify for that are going to get the 2500 or the 5,000. Um and so that is that lefth hand column that is that's done. Uh the middle column are some options that we put out for the non-exempt

088staff. So this is our auxiliary hourly pair professional staff members and you can see the the different scenarios that we put on there and that's I'm going to move to the right just for a second and I'll come back to the middle. The right is the exempt staff. So as Dr. Craft alluded this the exempt staff is for all of the exempt employees that are not in the lefth hand column. So not eligible for the teacher retention a lotment but any exempt staff that is um teachers, librarians, nurses, counselors and administrators and teachers um I'm sorry the teachers less than three years of experience. So going back to the middle column um we had originally looked at the 1.28% and I explained why on that piece and that's also in the righth hand column too

089because we wanted to show what we had previously recommended. Uh we have talked we heard the board's uh concern about the $15 um per hour review and so we've run and provided the board with several scenarios of how we could possibly get there and understanding the goal to get there over time and making sure we're working towards that goal. And so we do have that on here the $15 entry rate with no compression adjustment at the 1.7 million. And I've given the examples recently on that that currently we have a a groundskeeper helper um that's at a pay rate below $15 per hour. We have groundskeepers entry rate below $15 per hour and then the groundskeeper supervisor right above that $15 per hour. So if we were to just move just do the $1.7 million

090cost that would cause those three positions to be pressed right up against each other. Um, so you would have two levels of supervisory that were basically being paid the same as the entry level position, which causes some do problems that we've talked about in in different meetings here also. So we don't recommend that. We that I it is an option, but it's I I am not comfortable with that option. It would take a long time to undo that compression. >> Yeah. And I'll I'll I mean again, you see the recommendation uh Megan, not to steal ahead. Not to not to steal the thunder, but the recommendation is is let's let's work systematically, very intentionally towards getting to that $15 uh entry rate, but then not not disrupting the the pay schedule to the extent that

091we can't recover and can't fix. Um, and so, uh, from a teacher retention aotment, I mean, that's pretty simple. I mean, that that's that's law. I mean, it's it's $2,500, $5,000. But we also need to take care of the one and twoyear uh, teachers that for whatever reason were not included in the teacher retention allotment. um at a 2% along with our other exempt employees. And then uh the recommendation is with non-exempt to go to a 4% adjustment uh to the midpoint. Uh that puts us closer and more in line with like I say that that that minimum. >> Um >> was I hearing things? thought I thought I was I thought maybe I was hearing things for a second. Um, >> so that that 4% gets us closer to being in line with establishing

092uh that that $15 minimum. It's it doesn't get us there. And I don't want I don't want to be misleading. It doesn't get us there, but it gets us closer. um which is also very very very important. Um the 1.28% if you recall um well that proposal was really a result of this is the this is the revenue that the state legislature uh provided us. And so this is in essence um articulating uh to the public of this is this is what your legislators feel like you're valued at. >> Mrs. Zapata >> Megan I have a question. Um I know you added down there the $15 entry rate >> u would ended up end up costing us 24.7 million. Is that correct? >> That is correct. >> With compression. >> Yes. >> That puts us

093kind of at the That puts us at the 15. >> That puts the minimum um wage for all pay grades at or above $15 per hour. So it moves every hourly position up at the scale so that there is not a compression issue. >> Yeah. So So again, I'm going to try to summarize this. So the the $24.7 million if you if you take the 18 pay grades and and you start running averages in order to be able to avoid significant compression not only for this upcoming uh budget school year but going forward we would need to make those equity adjustments all throughout. Uh, so it's about 5,600 employees because if we don't it we're going to have we're going to have real issues with as an example supervisors that are making at or close

094to uh employees pay that they're they're they're being charged with supervising. and and so it it just we we would have to make those adjustments. Whereas if we systematically make the 4% um adjustment to the midpoint within all 18, I believe it's 18 of those paygrades. It keeps everything still in um in balance. Um if that makes sense. >> Correct. >> Hold on. >> Another follow. Okay. >> Yeah. >> Sorry. >> So, Megan, going back to my previous um question on the 24.7 million like I understand that that raises the rate entry rate to $15. That's what the compression sir you were just discussing. >> Yeah. So, so the the entry rate would be $15, but then we like I say through the all those paid >> grades we would have to make equity adjustments,

095>> correct? >> Um, that that's where it becomes more of a costly item. >> In your opinion, I guess, Megan, and I I know it's a lot of what ifs. How long do you think it would take us to get there? 5% >> with well the compressions getting us at $15 entry rate. >> How how many years to get to a 15 if we do it as a GPI? Is that what you're asking? >> Yes. >> Okay. And so um so I know I talked to Dr. Hasso about this. We have um so right now I'm looking at the pay grades and sorry sir but there's several more than 18 pays. Sorry, that doesn't count them all up, but I just wanted because they need context. Right now, we have um 12 of I got

096to 18, so I'm going to say there's about 35. I think I didn't add them up, but we have 12 of our pay grades that have a minimum wage of below $15. >> Okay. >> With the 4% GPI, that brings that 12 down to 10. Um there are three of the pay grades that have between a four would need a 4.2 2 or 4.5% to get up to a $15. So if we were able to give a 1% more next year, that would take three more pay grades above that $15. So it all depends on how much of a GPI we could give each year. Uh but there are as I and I provide this in the Friday letter so you all have this. uh if I go through the different GPIs that are needed,

097the percentage rate that would need to be cascaded through all the pay grades to make it not be compressed. Uh there are I'm just going to read some of them to you just so you can see. There's one that's a 4.2%. That is doable and I think we could get to that additional 0.2 next year without any problem. But the next one is a 27% GPI to get it to $15 per hour. That's a that's going to take many years to get to. Uh, but then the next one is 17%. That's not quite as bad. Still a long time, but then 8%. So if we do 4% this year and do 4% next year, we would be pretty close on that one. Um, so it's various for the various levels depending on where they are.

098Um, but we have, like I said, one, two, three pay grades that would take under a 5%, you know, right under a 5% to be able to get them to a GPI. So to answer your question more directly, um there's the four pay grades that would take a 27% 15 I'm sorry, 17% 30% and 19% GPIs to get those to $15 per hour. Those are going to take several years. But other than those four, I think we can get there in two to three years if we're able to continue. >> So 31 pay grades we could get, too. >> Um can somebody add up the pay grades for me real quick? So I'm not just roughly let's say 35 minutes. >> Yes. Yes. >> Okay. >> And then um one more question and I know

099you're you're talking about there's one here that I'm reading at 20 it'll take 27% >> which is a clerk >> and we have 92 of them. Is there with taking that into consideration, is there any way to kind of maybe reanalyze that where it's kind where we maybe group it or we um I guess my question is is I they're not all clerks. One's elementary, one's middle school, one's high school, and then one's central office. >> It's a great question. >> Like could could it be >> Yeah. regrouped, I guess, or or in a sense to re-evaluated. >> Yeah, I I I think that there might be the opportunity to reclassify. >> There you go. Reclassify. >> Um, we just got to be really careful. Um because what can happen is the pay grades as

100they get more and more compressed they just kind of almost dissipate and then it becomes really difficult financially but also mathematically to disagregate. Um so so so possibly uh reclassification, retitling the positions because I will say this that um in many cases a very very astute strong um uh campus administrative assistant clerk um is it's the lifeblood of the ability for the principal, >> correct, >> to be able to function at a high level. Um, and so I I think Mata, uh, yes, I I I do think that we can definitely, uh, look at those particular positions. Um, but I just I just don't want to make any false promises in the sense of we'll have to analyze it structurally all throughout. um you know the the the teacher retention aotment that's simple that I

101mean it's a lot of money um and hopefully it will it will you know hope hopefully it will help with the intent we need to take care of other teachers and hardworking employees with like I say the proposed uh 2% and then like I say the non-exempt we we we need we just need to very intentionally start working that direction. Um because these are also very very important roles. Um what you're seeing you know again is approximately 89% of our operating budget uh that's going to be proposed which this is a big piece of it and how do we take care of 13,000 employees. And Dr. Hassel, you had a question. I'm sorry. >> Yes. Um, so my first question is where's the 2.6 million difference between slide three and two? Like the teacher retention

102a lotment is 30.4, but in the other slide it's 27.4. >> This is revenue. So this is the revenue coming. This would be expenditures. >> Expenditures. Okay. I was like, so they're still not. So they still didn't give us enough to cover what it's going to cost us. >> No. >> Okay. That was I was like that's what I was trying. I was like >> that's a great point. Yes. Because the 27.4 is the revenue that comes in. It's going to cost us 30.4 because we have to pay those benefits. >> So 2.6 is what we're still missing to be able to Okay. Just wanted to make sure >> TRS on behalf um what's interesting about House Bill 2 and it one of our neighbors just right up the street which I'm smoking mad about

103it. It's actually going to cost them about $2 million to implement House Bill Two >> out of the general fund, out of their general fund to be able to uh compensate the $25 and $5,000. >> The way the formula works, they they do not they don't even have the ability to use that staff retention a lotment. The support staff is having to go to help pay for that teacher retention. And I think your $18 $18 million figure was the difference if we were to go from >> the 15 entry with compression versus the recommendation. That's where you're getting the 18. >> 18 like if we were to go all the way >> I'm sorry. Yeah. >> So at $15 for the 24.7 million minus the six that's 18 million difference. how much more it would

104cost us if we were to do the $15 compression. >> Let me let me let me let me back up. Just so so what we've tried to articulate is >> the teacher retention aotment. It's outlined in House Bill Two. >> So that's that's the large portion. >> And again, we we need to take care of our classroom teachers. I mean that that's that's our core business. So, you have that piece of the recommendation. You have the non-exempt of a 4% uh increase to the midpoint. And then, bless you. And then uh our other exempt employees, which I'm just a firm believer that we don't leave anybody behind. I mean, it it just it's really important. We're a team. >> Dr. Hasso, I'm sorry I interrupted. >> Oh, it's okay. I'll have as we go along.

105I kind of have a couple more >> and I think that maybe this will help because it summarizes the actual what we're proposing. >> Mrs. Freeman had >> with the total. >> Let me go back to the other slide too. I'm sorry. Thank you. >> Um, okay. Just as we were talking about auxiliary um staff too, I know it becomes very complicated as I was looking at some of the stuff that you sent and by the way, thank you. That was >> a lot of information. I hope it wasn't too much. >> Um I I know that was quite detailed. I I did notice too um okay there's over 5,000 auxiliary staff but of those and I I can't remember where we were when we said when we if we approved the staff recommendations how

106many people were still under 15 but I also noticed that there's like 270 people that of those auxiliary staff that are working four hours a day or less. So that's just something else to take into consideration. I think when we when we look at um that type of thing, I I mean I don't think I think when we when we look at percentages, they just get they would get the percentage. If we went up to $15 an hour, then I think you do look at how many hours a day that they that they work and how much do you pay part-time. >> Yeah, I I think that's a great point. Um and well, Megan, you have the numbers. I think Let me let you >> So, um I ask Abby to run for me. The

107um under the 4% GPI exactly how many employees would be below $15 per hour. And this is all funds. It's not just general funds, but all employees that would be 724 below 15 and 4,798 above >> 724 below. >> Okay. >> And 4,798 above. >> Thank you. >> For the 5,5 I guess I'm still please reiterate to what staff before we leave this slide. What is the staff recommendation such that um I and I know that y'all have talked about this because if we do anything greater than the staff recommendation, we're going to have to start slicing from the the other budget, the budget where we haven't really talked about yet, but >> Right. >> Yeah. So, this this is this is a big piece. Um the recommendation being made to you is to approve

108as legislated the teacher retention allotment for non-exempt employees a 4% increase to the midpoint and then a 2% increase for all others um uh that are not included either in the teacher retention aotment or are um non-exempt >> and that includes administrators or professionals >> that includes administrators all others >> and and then there was another there was another question I had or maybe an additional comment um when we talk about how long is it going to take us to get there >> would certainly be helpful if we passed a TR in order to >> um >> well that's just it I mean and that's >> that would be >> yeah that that's We're we're laying it out these guys. >> I know. I just thought I'd mention that because when we talk about looking

109at that >> then we've got we've got more money to >> right >> to find. >> We're we're going to bring a we're going to bring a a budget that's going to be a deficit this year >> for fiscal year 26. uh if the board elects to approve this recommendation and the compensation plan and then going forward we're going to we yes we're going to need the community support and help >> thank you that that was it >> Dr. Hassel and then Dr. Carl. >> Oh, it was just um kind of back to Laura's question like the natural progression if we did 4% would be eight years. Is that >> I don't want to overstate because we will not have any new revenue next year. >> Oh no. I just like natural progression if we

110did four every year like not I mean in an ideal situation right like >> natural progression in eight years if we just did 4% >> we wouldn't get to a 15 $15 an hour for everyone it would take eight years >> and we might need to still have a little bit of moving on the compressing some of the lower pay grades >> and then is it a normal practice to approve compensation before looking at what the budget is going to look like seeing because I feel like the budget the compensation is the main part that feeds into what the budget's going to look like and so we're approving compensation but we don't even know what the how that's going to impact the regular budget that's like a natural progression for all ISSDs. >> Yeah. Yeah.

111No, that's a great question and and um the short answer to the question is yes. Typically, we approve a compensation plan in and around May. >> So, we're late. >> Okay. Uh but that was very intentional in the sense of we wanted to see this this go around uh because uh and I'll be the first to admit I really thought in the 88th legislative session surely they're going to take care of public education and provide some additional funding. Well, they didn't. and then their four special sessions they didn't and so this go around uh seeing that we are using our uh continuity of instruction fund balance let's let's wait and see what comes of any school finance bill i.e uh House Bill 2 and so we had we had to we had to delay a

112little bit. Um now that we see okay here are here here are the dollars that are being provided this is the recommendation uh to apply um like I say uh taking care of all employees um as a result of like I say what has been legislated um and in fact in doing so again you saw the 1.28 28% that 1.28% was calculated as a result of here is the here is the additional dollars that uh has been provided as a result of the 89th legislative session. Well, I'm recommending that we go a little bit further and passed um because the reality is is 1.28% is not enough. >> Dr. Harl, >> I was just gonna >> Sorry, I'm just thinking out loud. Um, but it could be taken care of sooner if we went out

113on a TR. >> Yes, ma'am. >> Okay. And I do want to address if I can Dr. Hos Dr. Ho's um question. Back in the May 20th meeting, we brought forward a projection of what we thought we would end this current fiscal year and what next year's budget deficit was going to be. um we're still working on that and that's that's the time frame that we were looking at changing class size ratios and we to draw this um comparison. So we do bring a big picture budget before we bring a compensation plan but a lot has changed since that that the legislative session was not over at that point. So but it is absolutely we had the compensation plan feeds into the budget and so that we can't really finalize the budget. It is a

114is it is a bit of a chicken and egg scenario. Uh you know which one comes first, but we cannot finalize a budget um view until we know the compensation plan that the board passes. >> Mr. Sito. >> Yeah. Just just a quick question. Are the compensation plan proposal it' be 44 6 46 the total? >> Um yes from all funds from >> all funds. So we're getting what 417 from the state. So that leaves our general budget what 2.7. >> So we're what we're proposing is the general fund for the top part would be the total of 41.16 >> is from the general fund and then we have the the revenue 41.72 is the difference. So it's a was that 400,000ish that >> Okay. Miss Sapata >> Megan on your pre I don't know

115if it's your previous slide, but it's the one that has a plan history. >> Yes. >> Um I'm you know I'm not uh I can't say I'm a professional on budgeting, but I'm looking at this and and I'm seeing what we've done in the past and where we're at now. And um it it it it worries me to know that coming out of COVID with the um I guess the raises that we've these last four years I see a 3% non ailary midpoint raise a a 2% in 2023 24 3% a 2% and we still have people making 1181 minimum wage. 1275 minimum wage. Like I it's it's a little disturbing, I guess. And so that when you tell me that it's going to take us eight years, I just um I I to the

116board, I think we need to do better. We need to do better, sir. And I hear you. We're It's a team, and I'm all about team. I We really need to um this has to be on the front burner for us. Dr. Har, >> any other comments, >> Mrs. Freeman? >> Um, going back to the budget projections that we had in May. I know and that and I I understand that was before the session was over, but I thought that you gave us I thought we had something after the legislative session >> as to what our deficit would be and and the fact that the plan would be in two years to have a balanced budget. >> Yes, ma'am. But even with all the cuts that we've made now and not much in the way

117of programs, but but I think we've talked about what that would that would look like. We're still um we've still got a a large deficit if we cut into if we cut into that much more than we are looking at programs or people. >> Yes, ma'am. the even with the revenue that we have and the intent was for us to try to to not go beyond this revenue because anything that goes beyond this revenue is more that we have to cut on top of what we already have to cut. Um we were when we brought it forward to you last time that we were looking to cut $79 million still. So any So when you think $79 million and you think 85% of our budget is staffing, that's likely to be where reductions are made.

118So for me, I I just I worry about giving too much of a so much of a pay increase that it would force us to potentially reduce staff to pay for other people's pay increase. So that's always in my mind um of how can we hope that that doesn't have to happen or minimal minimalize that as much as we can if that makes sense. >> I I understand what I understand what Mrs. Pot is is saying about the the length of time. I just get concerned about how much we can do now without additional revenue. And then that budget is also based on We still don't know what vouchers what that's what that's going to look like in in a year's time or what that's going to that's that's going to do and there's some

119still some other unknowns. Um, >> yeah. And and I think that's a really good point and and definitely a question that's on my mind is is again there's there's not really a a very good way to project what particularly 26 27 school year uh entails and looks like. Um, I think that the proposal, uh, Miss Freeman, is within our means, and I will tell you, Megan and I have had a lot of conversations about this. Um, we're going to work hard to provide you as close to a balanced budget the following fiscal year uh as possible for a track of sustainability for years and years uh to come without um anyone losing a job and without uh any significant changes. is to the uh academic, co-curricular, extracurricular programming. Um because that's just what we need

120to do. >> And not to say that it's not going to be challenging and with some some bumps along the way, um but but we're we're we're turning a big battleship right now. Well, we don't have to look there. Our our neighbors are some of our neighbors are cutting programs. We we know that we have a neighboring school district that's cut golf in order to um and and other programs across the city. So, we haven't been we haven't done that. >> No. >> And we're going to work very diligently >> to keep those >> to ensure that we're not >> Dr. Hall. No, I think um and I I don't want to add extra work to staff, but some of these positions I would like a little more information on just to help um you

121know, why are some IAS, for example, at risk IIA not making $15, but a dance IAS is making $3 more an hour? I I I just want to know maybe if I if we want to send in like what are some of these positions, roles, and responsibilities? um why is a custodian not making $15 an hour when a groundskeeper, you know, things like that. Um that would help um me understand possibly why some of the hourly wages are what they are. Um and then some of the positions I just want to know what a coota la is. Um who's getting 27 an hour? >> Okay. >> Yeah. and and >> uh we can definitely uh provide followup and and feedback uh to any and all >> questions that are asked uh as you have uh

122seen here within the last week. If a as long as it's one-way communication uh either to myself or to Megan or her team, we'll we'll make sure that we're copying the entire board. >> Thank you. >> Uh so that you all are privy to that information. uh we just we need to balance not engaging in dialogue if we need to come back to a formal meeting >> um legally where we can have this discussion but we'll we'll answer any and all questions um and provide that that information. I mean that that again that's that's what you have us here for. >> Yeah. No, I know. Thank you. Uh, the other one, and I don't know that I got it answered, but I could have missed an email, was um, and it's probably too late to

123look at it for this coming year, but um, CMC with special ed versus co-eing. Um, and I' I'd kind of want what the special ed department feels are the benefits or whatever because that is a big cost to have co-eing. We're one of the few districts that does co-eing. So, at some point in time, that would be great. >> Yeah. Absolutely. Uh I believe we have that figure. Um co-eing is it it it is very costly. um and content mastery. Uh I I don't want to say it it it is um the module for what we want to do and provide uh instructional support uh to again almost 19% of our student population. But we are we're we're above our uh required spending, Megan. I think we're spending in excess about 70 million if I'm

124not mistaken. >> Sorry, I do have it with me. Let's see where I put it. So yes, it it's it's it's it is a costly program. >> I mean programs that are working best for our kids, but right now I don't have enough information >> or or has you know staff specialized department really looked at it and said here's what we recommend. talk to teachers know our kids something. >> Yeah, >> you had a question. >> Reate just to reiterate again um just towards the comment to trustee Freeman. I I understand that we're always going to have uncertainties as far as vouchers. You know, we got to see we got to see what's going to happen. We're going to do our best to try to um you know adjust as these comes, but I can

125tell you we're always going to need servers. We're always going to need clerks. We're always going to those are things that we know that we will always need. There is we don't have to guess on that. So again, I I'm not sure. Again, I I just uh joined the board, but again looking at our history and I'm hoping that as a team of eight here, we either look into again just we need to make some headway with this because we don't have eight years. Eight years is too long. We can't wait eight years to get um our campus clerks to $15, our our food servers to $15, our IAS to $15. I you know, whether we're cashing in golden pennies, but we need to have we really need to work together and and and come

126up with something and not something in eight years. So, >> yes, ma'am. >> Mrs. Freeman. >> Oh, um I think I >> Dr. Hel. >> Um so I have five because I want to >> five questions. >> I want to like Yes. So this has been obviously something that um has I mean in so many ways kept me up like you know we've talked about this. We've had multiple discussions about this and I want my five questions or comments and then we'll kind of I'll be personally ready. So with us looking to do like evader in the future, is there such thing as having too much in reserves? >> I I believe so. Philosophically, I I again I think that if you are year overyear continuing to build beyond a threemonth fund balance, what that

127translates into is you're not spending funding that has been provided on students. And so I I think that a threemonth operating expendit expenditure fund balance is is is the right balance. Um I wouldn't go be below. And so if we find ourselves in a situation where year overyear we're putting 20, 30, $40 million into that fund balance, then I think the board probably needs to look at me and Miss Bradley as to Dr. Craft. Uh that's those are funds that really should be being used to support student success um via employees and and exactly what we're we're talking about. But that's just not the position that we're in. This past year, this this current fiscal year, but then the previous fiscal year, we've realized a deficit budget. it it it is real. Um it is

128in the red. And so we've got to keep turning this battleship while taking care of people um during these very challenging uh economic times which again you you you will not see I I will assure you you will not see come August um a budget that is intentionally artificially uh inflated where we're going to be experiencing a real fund balance increase. It's just not going to happen. We're we're going to we are going to be um proposing another deficit budget um this fiscal year >> and and it will be it will be realized. >> I agree. Um my next is really you know at the 4% for this year and mathematically you know if we keep going at this rate that's eight years you know can we as a board make a decision to make

129a plan and we talked about it a little like what does a realistic plan look like? It's not eight years. So, what does a realistic plan look like to get individuals to $15 an hour that we decide as a board saying, "Hey, this is what we're going to strive on because in reality, like after what is it?" So, we do a 4% just my little calculation. So, it's off obviously by a couple employees. Like after this first year, we will still have, if the 4% passes, we'll still have about 774 employees not making $15 an hour. If we do this in a second year, we will still have like about 322 employees still not making. If we do a third year, we'll still have about 251 employees not making $15 an hour. And I feel

130like three to 200 people is a manageable amount to really come up with a strategy that we don't have to wait eight years. Like I understand like right now like we're talking 12,000 employees. Like that is that is a monster. Like I completely understand that. But as we're really prioritizing this as a district that we want to make sure that North Side is a place for students and parents to come, but it's also a place for employees to be recognized and to be paid a livable wage. I really feel like we owe it to the North Side family to really look at strategically what do we do with about 300 employees to strategically get them to $15 an hour? So, it's like can we come up with a plan? Is there also an opportunity to

131look at the budget again in December once we know open enrollment and really look to see where we stand to then, you know, say, "Hey, we're going to look at this again because maybe we can do something about in December." So, we're not just doing the 4% knowing that 4% for many of these individuals, we're talking about 25 cents additional to their paycheck. >> Yes. Yes, ma'am. and and and you have the ability, like I say, as the governing body, uh, elected body to absolutely look at a compensation plan at any point in time during the the fiscal year. I I think from a strategic standpoint, what I would like to do is to migrate the conversation away from a $15 conversation to really looking at the classification and how how we're bringing in entrylevel

132employees that we might be able to make those adjustments. through a just a pay schedule. And like I say, the the pay grades um that over a shorter amount of time uh can fix itself. Some sometimes we we get sometimes we get very consumed in well this is the way we've always done it. Yes. and and and maybe maybe we need to reook at well >> why >> that's why we've always you know this is what maybe this is how we've always done it but maybe there's an innovative better way of analyzing and looking at things and maybe payra MT one two and three change >> then my last two So >> you have three left. >> Oh, I think I bulk some in. Um, so you know, when I look at midpoint, and I

133could have the definition completely wrong. Like my understanding of midpoint is anyone below midpoint, you're like decently new in the industry, like you have less years of experience, you are either entry level. Um, so I'd like to know for those last like 700 employees, how many years of experience do they have at North Side? And does it warrant them being below midpoint? If not, why are there so many individuals that have that many years of experience below midpoint? Because, you know, my understanding midpoint is where individuals should be when they have a good amount of experience. Below midpoint, you have really no experience or just a couple years. And then anything above, you are a seasoned employee. You've been here for a while. And to have so many people so far from midpoint like either

134we brought on I mean maybe we did maybe we brought on like a good thousand employees in the past like couple years which hey that could possibly be the case. So >> yeah. Yeah. And that's it. Like hey is that the case? Like do we have a huge turnaround? Do we have a huge turnaround because we're not paying people like us? >> Turnover. >> Yeah. Turnover. Yeah. And then the last is um more like for the board like can we really do a TASBY salary analysis like to make these decisions because we're talking about doing you know it's a big boat like we're talking about cruise ship and we need to make sure that we have the information to really be able to make the best decisions to make sure that one we're competitive not

135just here in San Antonio but really who is the other ISD here in the nation or in Texas that were comparable to like what does that look like and are we in any way salarywise anywhere close to those schools. So that's >> yeah I think that's a great point and and we've had previously the conversation with the board about doing a full fullon full-blown salary analysis study. I I don't know that TASBY can provide that analysis. Um we're we're we're a little bit larger and a little bit more complex. Um I do think it's warranted. The only thing that I will say about a salary study uh that is conducted is we need to be ready to actually do something with it. And and so if we do it, which we've talked about and I'm

136great with it, I I I welcome it. We just need to be ready to put our money where our mouth is because what what can happen is the exact same conversation that we're having right now. Well, we need to make all of these equity adjustments. Um, and I'm just kind of thinking through uh trades and and what have you. The worst thing that we can do as a team is have this full-blown salary analysis and then wow that's going to be really expensive. We can't afford it. It it just it sends a really bad message uh to our employees. >> So I just I I just yes absolutely warranted completely on board. We just need to be prepared to put our money where our mouth is. And >> I agree. I mean, I think, you

137know, with a big cruise ship, like it takes a lot of money and we can see that and that's why we're letting everyone know like this is how much it costs to do something like this. Like this is why we can't do something like this tomorrow. Like completely agree, but it's really looking at strategically like per position, per per classification. Like how do we get to a point of slowly moving the needle with actual information to be able to do that? Because right now like this 4% like >> is that the best route? >> We don't have all the information, but we need to pass a budget. Like we need to pass a budget. We need to have a viable budget coming up. And so this is our attempt to really move the needle. But

138it's like we're north side. I'm like >> we are >> like you know I kind of always like North Side to me and to many I mean I work with 30 other ISDs. like North Side is seen as the district that individuals want to be like because we have so many students because we do have such a big foot footprints in San Antonio and that's what we need to really focus on that how do we really become you know how do we continue be I don't want to say we're not like we are but it's like how do we really focus on this specific area and make sure that we're really making strides. >> Yep. >> Dr. Mr. Pa, >> thank you Dr. Hasso for that. And I I agree with her and and um

139Dr. Craft, I commend you and I again, this is a plan. We got to start somewhere and um you know, when we're going through all this data that and I thank you. I do. I go through it. I mean, like a fine tooth comb and it's awesome. So, I commend you for that. And I we need to have a plan to go forward. And I think I think this is a great start for all of us to work together to do that because just like Dr. Hassel said, I I don't like to look at other districts and see them pay $17 an hour, $15 an hour already currently. I want people to look at us. I don't want us to compare to somebody else. I want districts around us to compare to us. And I

140know we will get there, but we have to start somewhere. And I think, you know, I I I commend you for saying that we need to change our ways or or think differently, you know, and um thank you for that. And I I do believe we're ready. >> Dr. Hall, >> okay, Mrs. Freeman, >> I just going to comment on the on the salary. um on the salary analysis. that might be an opportunity when we start looking at our efficiencies and as we go into the VATRE and um it also might help us with um it might inform us when we uh talk about advocacy and any increases in um salary and and how we can go to our electeds. I mean, we've had done that in the past, but to have more data behind

141it, I think that's always always helpful. >> Yeah. I mean, it's exactly right. It's one thing to say, hey, we need more money to be able to appropriately compensate hardworking individuals, but having the data points of this is how we're so far behind the market is a whole different picture. And I will go so far as to say too, it would help us with our um Vader campaign when we talk to our community. >> Yeah. >> Regarding where we are. So, if we have something like a salary analysis behind that, I think that would help us. >> I'll I'll reach out and um and and start working on a salary study. Uh, if everyone is in agreement, um, let me let me see if let me see if TASBY can I just don't know that

142they have the >> I don't know they had the expertise to do a district of our size, but uh, if they do, uh, we'll get it done. >> Dr. Har, >> I remember what it was. Um, so we'll make the decision tonight and possibly part of that strategic plan would be we're we're definitely going to go out on a a TR. Could also um this isn't a dumb deal. This is dynamic in a way. We could also look at, oh, all of a sudden open enrollment is bringing in some more revenue. Oh, this other thing is bringing special ed wasn't we didn't take as big hit as we thought we were going to when we find out in October. Things like that. So we could keep visiting this. Um. >> Absolutely. >> Okay. So I

143think I think that I know it's not part of a strategic plan but it is part of how we could behave and operate. >> Yeah. So I if once the compensation plan is approved and we've bon and I've already discussed this uh through Tyler Munis which is our business information operating system. I mean, we're going to already h a lot of individuals have started their contract actually in well, as of July 1. So, we're already going to have to go back and retropay, retroactive. So, so yes, we we can do so. Now, I would highly encourage the board not to do so three or four times a year unless unless we're going to be looking to um replace our entire business and finance department. Um but yes, we we we yes, we can definitely see

144where we are even midyear from a revenue standpoint and and if an adjustment is, you know, uh the board's desire, we we can absolutely do so. I mean, a prime example is you as a board actually did this just a few years ago. Um, and and it was, if I'm not mistaken, instructional aids, uh, bus drivers, um, auxiliary staff, um, in particularly, uh, critical to fill positions and so so we we yes, we we can do so. Yes. >> So, I think like in summary, we want to be that district of choice. We want folks to look at us, not us, at them. And we want to make sure that everyone knows that they're valued, right? including from the bus driver to the custodian to our teachers and our students priorities and programming are what

145why we're here why we're in this gig right to begin with I want to thank all of you all because you've asked a lot of great questions and we've asked Megan and her team of a lot during what's supposedly vacation time which we don't know what that means >> not for us not for >> exactly so I know you're not quite done yet but then we will make that call right to if we were going to make a decision tonight. >> Yes. So, this was our proposal um which we've already covered. So, this summarizes it with all funds and then the rest of the um items are just pieces that we include with the compensation plan every time showing that we are not planning a change to the substitute pay which we talked about. Um

146we are also not ch making a recommendation to change stipens so those would stay flat. Um and then our teacher incentive a lotment plan that we include every time there is a compensation plan just so the board knows where we are. So, we've discussed those in detail last time. So that really is the presentation. >> So Madame President, uh, members of the board, my recommendation is is to approve the compensation plan as recommended with a $2500 um, teacher uh, retention aotment uh, for three and four years of experience, $5,000 for uh, the teachers uh, that have uh, five or or greater years of experience. non-exempt a 4 percent increase to the midpoint and then uh all other exempt employees a 2% uh increase. Um and and I think that very humbly speaking, we can afford

147this at this juncture and we will absolutely look at a salary study and how we continue to progress whether that be through uh recommendations with compensation andor like I say looking at our pay grades and and really restructuring um some things, reclassifying some things uh going forward. for which we can absolutely do. >> Okay. Do we have any motion? We had one more question. >> Oh, we have a motion. We have a question. >> Okay. Just miss. >> It's it's in the in the dark red. Correct. >> Mhm. >> Yes. >> The dark red. Yeah. So, the the teacher retention aotment that that's legislated. Um. >> Right. what what you're really approving is our non-exempt and exempt of again 4% for non-exempt uh to the midpoint and then 2% uh for exempt um going forward.

148>> Okay. >> I I move to adopt the comprehensive plan. >> Second. >> All in favor say I. >> I. >> Any opposed? All right. Motion passes. >> Thank you all. >> Appreciate it very much. And we'll continue to work hard. We've got to take care of a lot of people. >> Thank you. >> I feel like we need a group. >> All right. So then we're moving right along here with our next >> item on the agenda is our superintendent. Future agenda items. Uh yes, ma'am. So, uh we'll we'll um turn right back around here in a week and meet again on the 22nd. Um uh the agenda uh will uh follow up a building committee uh meeting. Uh we will have, like I say, a consent agenda being the the regular uh meeting.

149We need we need to revisit Holmes High School. Um Holmes High School is a it's a pretty comprehensive, pretty in-depth uh project. Um and we run uh a lot of a lot of numbers. Um what our intent with homes was to renovate the kitchen, cafeteria, uh build new athletic facilities, and um we'll discuss this like I say in the upcoming building committee, but it looks like the numbers are starting to play out that it it would be better um and more beneficial to just build rebuild from ground up uh brand new facilities. Um so so that'll be that'll be an item on the 22nd like I say following the building committee. Um we're going to provide a a quick update as to the renovations uh to this boardroom. Uh if you uh recall uh Bobby

150Blunt uh who unfortunately can't be with us this evening, but he was the recipient of a James B. Crow leadership award. And so, uh, we're going to use those funds, um, to memorialize, like I say, former trustees, but then also provide some updates. So, we we'll bring in schematics, uh, in regards to what that project, uh, uh, could entail. I think it'll be pretty nice. Um, we've got, uh, the public uh, meeting to, um, discuss the budget and propose a tax rate. So this is this is basically setting the date. Um which Megan I think you've already got a >> August 26th. Uh so uh that will be uh also an item. Uh again fiscal year 26 budgeting. They're going to work pretty diligently. Uh again, thank you for your uh consideration of the compensation

151plan. We'll be plugging that in and then you'll start to see a much uh more detailed uh budget proposal uh for fiscal year 26. Um and then there are going to be several policies that we're going to need to uh address. I think I mentioned um I was on the uh phone yesterday and today in regards to the cell phone uh policy and I think that this is a really important uh topic as we uh forged forward. I I I do not believe in my conversations with legislators that the intent was for cell phones to either be banned from coming to school uh or nor being taken up at the beginning of or redistributed at the end of a school day. And and so I think that um uh from a parental standpoint there can

152be like I say a level of mutual respect where yes we cell phones are not going to be utilized for social media or texting or whatever the case may be during an instructional time. But there then this reassurance that parents um having a senior at at Brandise next year myself knows that if we need to reach out to our child they they will have their cell phone uh on their possession on on their on their body in a in a backpack in a purse uh what have you. So so that's what we're going to work uh uh towards and striving. We've also got uh some legislation in and around library books that we're awaiting uh TASBY uh guidance from a policy standpoint. Um which we're going to again be very very intentional and strategic in

153how we go about implementing these these new laws uh through a policy recommendation. Um so there there like I say there will be there will be several policies that we need to bring forward. Uh not to mention like I say the the um extracurricular policy for uh homeschool uh uh participation uh as we briefed uh last meeting. So, like I say, um there'll be some, like I say, uh schematic design, construction items, and then probably a pretty good dose of policy um in preparation for the school year. >> Great. Thank you, sir. It looks like we want to thank you all for coming and we're now going to move to our executive. Oh, you have one more. I didn't come through, ma'am. But go ahead. Yes. >> Thank you. Um Mr. Perez, a question. I

154I know in the blue folders there's our campaign um forms and what I understand from speaking to Miss Tobar today is though the candidate forms were due we we also have another form to to complete and so we all need to um fill out not only the campaign the end of the campaign [Music] >> I think we have about and then every six months. >> So, some of us have two different packets of forms to turn in. I just wanted to mention that. >> Oh, if you ran if you just won, right? You'll have two. >> So, this packet, so you'll if you just got newly elected or just ran reelected, you would have two. And then the rest of us would have one >> because of the election. >> End of July is what

155it says. And then 15th returnary and then >> okay >> January 1. Yes, >> actually. >> Yeah. If if you have question if you have questions, just please reach out to Monica. Uh we'll we'll get >> the campaign finance >> the clarifying answers. Um, so campaign finance reports >> are due July. >> Okay. >> I can send >> We'll get that date to you. >> What was the question with the due date? >> Yeah, I thought >> it's the the challenge is for new trustees. We have two brand new trustees. They don't have anything between January and I mean there all they have is so they wouldn't have to turn in another form. >> Is that correct? Mary said they would turn in from now. >> I only did one >> from the time of

156the election to be a short window. >> Yes, >> we would still put that short window >> just to be safe to it if it's beacon if you don't mind. >> I'll get clarification from Mary and send an email tomorrow. >> We we let us follow back up on that one. >> Let me follow up. I know there are two reports and they have two different time frames, but I'm not positive with the time frames. find that out. >> Okay. >> Thank you. >> Well, thank you all again. It's now 8:21 and we're going to convene into close session in accordance with the Texas Government Code section 551.071.804. Do I still read this? >> No action will be taken in close sessions and any decisions will be made when the board reconvenes. The time is

157now 8:33 and the board is reconvening into open session. No action was taken in close session regarding uh the agenda items discussed in close session. Is there a motion to come before the board? >> Uh Dr. Harl, >> I move we approve uh the positions as discussed in executive in se executive session. >> Okay, Miss Apata. Second. >> I second. >> All in favor say I. >> I. >> Any opposed? Okay, the motion passes and so it is now 8:33 still and our meeting is adjourned. Do we have a motion to adjurnn? >> So move. >> Okay. Well, then I'm going to go ahead and there's no objection. Meeting is adjourned. Thank you. >> Thank you.