001we'll start out with our U pledge alance and our U invocation led by uh Chessie Durant okay 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 I'm amen amen aliance 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 to Texas one State under God one and indivisible all right thank you trusty Don so good evening everybody and welcome this is a call meeting of the Northside Board of Trustees uh before we call the meeting to order board like to take just a moment to
002review some of the rules for conducting our meeting the order of business is set out for this meeting is in the uh is set out in our agenda uh 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 How We Do provide the opportunity for audience partic participation there's anyone here that like to address the agenda item that we have we ask you sign up on the sign up sheet prior to this meet meeting and indicate uh that you want to speak to that particular item this is a signup sheet was located at the front interest of the meeting room this is so we don't overlook anyone who would like to speak to the board uh due to this being
003a call beating there will not be a citizen to be her portion and we'll review the rules for addressing the board later in the meeting if somebody has signed up is there anyone here that wanted the opportunity to sign up okay and it looks like we don't have any sign ups so we'll go ahead and we'll officially uh call our meeting to order and uh one AG item Dr Kraft yes sir uh members of the board uh good evening uh first and foremost um hope you had a nice Spring Break um I would like to introduce uh one of our newest members to uh the north side ISD team and that is our uh like I say new Deputy super attender for business and finance Megan Bradley so welcome Megan we uh were were we
004were sprinting back from City Hall uh uh talking about the bear Appraisal District reappraisal plan and I said you know you're this meeting is really all about you tonight Megan uh so uh welcome we're happy to have you and um like I say it's going to be um Fast and Furious as we get ready to uh obviously prepare this upcoming uh School Year's budget I I thought what I'd like to do is just prepare some context um and as we are navigating particularly this legislative session uh just provide kind of an update as to um where we are with things and like I say haven't had the opportunity to to um be there this morning for the uh house public education committee that was primarily in and around uh chapter 37 which was school discipline
005uh legislation uh provided written testimony we of course had to get back for meeting uh in downtown as well as building committee meeting as well as this meeting uh so um uh but I feel like um things are are looking better um when we've started the session particularly from a school Revenue uh standpoint uh I had I think you probably were very much aware I had some very serious concerns um I I think that with the proposed House Bill two uh which uh I was uh one of the committee panelists that uh testified uh particularly in and around uh the bilingual uh allotment um and um H how to try to make the better the bill a little bit better um it's it's not going to be um probably as large of a basic allotment
006increase um what was proposed in the original House bill to was an additional 200 and Megan you may have to correct me I think $220 uh dollars to the basic allotment I I kind of feel like that's probably going to come up a little bit um I think that there is definitely a concerted effort uh to try to propose or Infuse about $8.2 billion doll uh into public education um I say this because and it's not a companion bill and and they're I think working and I say they both Chambers are working pretty diligently to try to keep the M the the two uh topics items separate um but uh House Bill uh three was also heard which is the voucher Esa uh bill and the proposal is a billion dollars um that has some
007guard rails um it's prioritized or tiered um uh based upon um uh service need um so I I I you know I think that it's safe to say that if if you were watching what transpired uh when uh testimony was being provided it was a it was actually a 24-hour Committee hearing um uh that I I would say that the vast majority who testified uh on the esa Bill were in opposition of so um um the most ever most ever I believe yeah I believe there were a little over 300 testimonials provided um so so it's interesting um what you know I anticipate is uh House Bill two and House Bill three um and several other bills uh today was House Bill six uh which like I say really primarily uh looked at chapter 37
008and uh disciplinary code um several bills will come probably out of the house public education committee uh within the next couple of weeks um I I anticipate that they'll then probably uh obviously head over to the Senate they'll go to conference committee and so we're going to plan on particularly with House Bill two which is really the agenda item uh working really in conjunction right alongside in Tangent with uh what we um um are seeing happen uh and participating in uh very actively um with this 89th legislative session um the the um uh I think the comproller has made it very clear um that you know we have in essence about $24 billion and I say we that legislators have about $24 billion without uh busting spending caps uh they can be accessed um and
009like I say as of this morning um I I know that chairman Buckley who chairs the house public education committee is committed to trying to provide about $8.2 billion uh towards uh public education so it so it's looking better um now does that get us to the $1300 increase in the basic allotment no um we're still going to find our elves in a position um and especially depending on how the the um uh funds new funds if you will are allocated through the allotments I.E a bilingual um several other allotments uh which equate basically to a weighted average daily attendance um and so I I think that we're still going to find ourselves in a position of having to reduce somewhere between four 4 to 7% of our annual operating budget um so where we
010are right now is as you well know we have been working uh looking at a variety of things um in anticipation of this legislative session uh knowing that the $1,300 to the basic a lot was just it's just not feasible um with especially all the other needs uh across the state of Texas to include water infrastructure um of course another round of property tax compression uh and um Homestead uh exemptions um I anticipate will be on the docket here uh very very soon um we need to we need to start um very fiscally looking at efficiencies um so that we can balance a budget going forward um I know Megan will describe kind of where we are as far as a fiscal year in audited I.E this previous fiscal year where we are current the
011current fiscal year um and then where um I'm going to recommend we land um which we need to be closer to a Balan budget uh going forward so all that being said um really where we are um again still a little bit early on in the legislative session but it's beginning to be clearer as to what we can probably anticipate on or within a school finance bill I think it's pretty safe to say that the house is going to really work to carry School Finance legislation there really hasn't been other than um a teacher Compensation bill proposed there really hasn't been a a Senate bill that is purely a school f Finance piece of legislation so that as we are looking forward I don't think that that is likely going to happen it will likely
012be the the house version where we are uh as far as Northside ISD is we've put in place a hiring freeze um and this has been really in place since the fall um we were reviewing each and every position uh that is really a a cabinet level uh senior staff level um uh critical need review um we've uh taken a look at uh 10% reductions across departmental budgets um and the intent uh really tonight is to kind of discuss where we think we are right now as far as efficiencies and reductions where we think we need to be um because as we get into the the real planning of not only the budget but also for next year as I mentioned with our think our last finance committee we've got to look at Staffing equations
013we've got to look at uh what I call the big levers uh that um really drive and and dictate uh how we go about planning one of those being uh our Ada projection now as I'm talking about that uh depending on what happens with a voucher Esa and then what stays intact particularly through conference committee as far as brackets um you know what is that impact going to be on us going forward I that's I mean a crystal ball right now would be really nice to have it just it's not real clear uh at this point in fact I've been asked I can't tell you how many times what is the impact going to be I it it's just really hard to to to determine uh until we see really what the implementation and like
014I say um the integration um and like I say guardrail stipulations that are going to be uh placed in and around esas so I say all this because there's still as we're working through the budget calendar but then also assumptions we're having to make some assumptions that we feel like that the US a bard of Trustees particularly with this fiscal year planning uh need to be really kept in the loop um because there are some there are some key decisions that but um like I say we have to start uh looking at lining up and and making the one thing that I will say is I've been uh asked also well does is this does this feel like 2011 2012 if you recall where public education saw about a $4 billion do reduction no it
015doesn't feel that extreme to me um and having been a superintendent for one whole year when that transpired um I thought the world was ending um it and it was tough um but it's not quite to that that level in my assessment um now that being said we're also going to have to make some assumptions that a house bill to or a school finance bill is actually going to make it across the Finish Line because if it doesn't we almost have to have kind of a secondary backup plan from a budgeting standpoint of upwards of 9095 million dollar uh being reduced because that's that's where we are from a deficit operational deficit budget this current fiscal year I think the main thing um uh that I want to again remind as we talk about in
016cabinet we talk about um 10% reductions across departments our intent is to one first and foremost ensure that we're protecting jobs um now will that uh you know potentially entail a a job looking different next year than it did this past year or uh what was funded through erer funds yeah quite quite possibly um but everyone maintains a job we try to remain as competitive as we possibly can from a uh salary and benefit provision standpoint because as you well know uh we're holding our own across Bear County pretty well but we we can't afford to put ourselves in a position of falling too far behind because it just becomes that much of a a steeper climb uh with Equity adjustments and and going forward so so we're going to have to keep an eye
017on on like I say where we where we want to be from a a competitive standpoint uh particularly with a teacher uh and some of our auxiliary staff positions um we'll work on uh like I say Revenue estimates uh as iterations and what we call runs are established um it's still a little bit early because there are some questions associated with House Bill 2 in in some really important whole harmless language that uh I can say this that with House Bill 2 being what is being proposed right now the increase of the required um 30% going towards a increase um to teachers Librarians counselors um nurses um is is being proposed to go up to 40% um and so as is it would be somewhere we we we believe in the 25 to $30 million
018range of additional Revenue so our Target I say all this because while we want to make sure that we're protecting jobs uh we're protecting our core operation business I.E the programs that we're able to provide all of our students uh we're looking at efficiencies um you know we have worked like I say pretty diligently is to do we think we can get to 40 to $50 million uh reduction in I I say really more efficiencies and going forward to proba really try to put ourselves in a position of being able to uh watch and and I say engage in the legislative process uh that hopefully concludes by the end of May actually June 2nd I believe s die um know not knowing exactly you know where we're where we're going to land like I say
019it's it's this crystal ball right now that we we just can't afford to sit back and wait um and hope uh that like I say a funding bill gets across the the Finish Line um and and so like I say there's a there's a lot to unpack and so I think I'm going to pause because I just unloaded a whole lot uh that really has transpired I mean here within the last couple of weeks I mean this the the house did get a little bit of a late start uh working to hire or or fill the speaker role um but they're picking up speed they're picking up inertia and um I I do think that we're going to see like I say a school finance bill we're probably going to see a voucher Esa uh
020bill um and and we're going to see some other things that you know we're going to have to pay really close close attention to uh like House Bill 6 and House Bill 222 and uh some other um particularly taxpayer related uh bills so so tonight's objective the meeting and I said I was I promised I was going to be quiet here in just a minute um tonight's objective of the meeting is really just to lay out here's where we are from a budgetary process here's what we are uh at this at this point recommending uh and going forward um and then if we need to start uh modifying or adjusting directionally what we're um engaging um this is that opportunity to really have that that conversation so uh again Megan welcome uh to Northside ISD
021we are so glad you're here um I'm going to turn it over to Megan and and Tiffany and like I say uh this has really been a culmination of of many many weeks already uh an anticipation of really finding ourselves in a position that we need to start working more towards a fiscal 26 fiscal year 26 Balan budget so Megan take it away yes thank you sir thank you for the warm welcome um as you know that I am on day seven of my job here at North siden I'm so excited to be here it's been a great transition to this District everyone has been very kind and welcoming including this group here so I want to say thank you to them uh Tiffany J and Julie and I have met a lot over the
022these seven days and so I'm trying to get my feet under me but I may be looking to them some as we go through this presentation so Dr craft did um cover a lot of what I was going to start off talking about so we'll skip on to some of the information that I know the board had asked for looking at our historical look of our general fund so this is a look over several years going back to 1819 of just looking at our results of operations so our not looking at the other sour and uses that you would see in our financial reports that are transfers and bond issuance and things like that truly focusing just on operations and you can see that through the years uh we have been fortunate to have surpluses
023uh for most of those years until this most recent audited report so August 31st of 2024 is where we've the first time we've actually realized a deficit of the $38 million uh the board also asked that we look at the instructional continuity commitment that portion of fund balance that is held for this Challenge and you can see the history of that amount that was held in that fund balance through the years and we started out the 23 24 school year with that $140 million um fund balance available for that instructional continuity knowing that as Sr funds went away that we would need to have a plan to be able to slow down that process of not pulling the the carbon out from underneath of the programs that going on so you can see that was
024a reduction from the previous year of $60 million so that is a significant reduction but still having $140 million as we went into this year sitting in that fund balance there any questions on the history piece thank you okay so next we're going to look at the project um projections so you've got the prior your actual which is the same column that you saw on that previous slide on the far right hand side and so again working with the the team here the current year that we're at we have seen a reduction of Revenue which you saw this that came in through that amended budget budget amendment number two that came to the board recently uh and the expenditures that are there so we're showing currently that we expect to end this fiscal year at
025$96 million deficit so we are working diligently on what our plans are for reductions going forward and you can see that we're planning for next year U around A $64 million budget reduction is what we were hoping uh to get to as we're working through this work of of reductions and then for the next year an additional 52 million to get to a true balanced budget as we and expect that we will use up the instructional continuity fund balance if that if everything comes out the way that we see it right now yeah and let me let me again probably more so for the general public that that continuity of instruction is really a designated fund balance that was very intentional uh as Megan articulated when when Esser funds um expired which was earlier this
026fall semester um I believe it had to all be expended by September 30th correct not mistaken um which we did uh um there there was this like I say designated fund balance uh knowing that there were positions and there were programs that were put in place um and have been utilized um that we wanted to continue until we get to this point of okay where are we headed this legislative session um only that like I said there were going to have to be some some reductions and some some choices uh being made Mr blun yeah go ahead K uh so 2627 we don't have we don't have any fund balance we don't have an instructional continuity balance designated designated this is not it's zero yeah this is this is not inclusive of the the recommended
0273 months operational uh fund balance that is really I know that sometimes this becomes or or comes under great scrutiny we've got to have it for cash flow purposes uh think of it as that um uh household savings account that depending on when our uh state aid payments are are processed we need that 3 months for a variety of reasons but I.E to make payroll for cash flow purposes but then also for a bond rating okay so um so so this is not inclusive of that three month okay so we will still have a three Monon um ma balance okay so thank you that is called an assigned fund balance and that is not part of this okay I had the same question but what is that amount in the three is it about 270
028if I'm doing three months or we can tell you real quick okay so while Tiffany is looking that up I do also want to point out that as you look at 2526 and 2627 that is assuming no additional Revenue coming in from the state so of course that changes our scenario if we do have additional Revenue that comes in from the legislative session yeah and I think that this is an opportune time to kind of talk through that um and this has been um an interesting conversation with colleagues uh particularly in Austin as to what we're seeing uh particularly with three four and fiveyear old student populations uh in the sense that we're just we're seeing a a decrease across the state demographically and so it really begs the question particularly as um I do
029anticipate this legislative session there to be uh what is being referred to as transfer ability uh bills which is pretty well open enrollment um particularly as it pertains to Athletics and Fine Arts that um will eliminate a lot of the um parameters that are that are dictated uh and really controlled by University inter Scholastic league and so I do think that there's an opportunity here um that we could look at an open enrollment um practice uh which we could bring back policy um and we could Garner some additional Ada by allowing students that live outside of our attendance Zone uh to access our our programs I know firsthand the programs like and our magnet programs are prime examples uh our health careers uh CCA I mean these are programs that are not only very unique
030but they're they're sought a after by individuals outside outside the district now I think that in in looking at that um it it probably will more likely align with some of the like say initiatives that I anticipate are going to be um pushed uh here in the very near future um we would have to be really careful in this sense of prioritizing our our district students um and their needs um and so it would be capacity available um um if we were to if if we were to look to open um up enrollment I can I can say this and and Debbie corre if I'm my number is off a little bit but um I believe we're we're somewhere just shy of a thousand students that are attending other school districts as a result of
031an open enrollment program please correct if I'm wrong I think that was the number traditionalized yes so so so that that's a okay that's an option yeah well we still don't know how many might leave if vouchers were that's very true so it could just like pass on I 10 um now I had I had a question earlier Megan I'm sorry um and it was how you started the conversation um Dr craft that it looks like predictions are that we might get 1,300 to the basic allotment what what do we need like if they ask us yeah I'm sorry I we we will not receive $1300 that's been an Ask okay by us or by oh absolutely we've been okay so that's that's our ask is 1300 well I I I I say ask I
032was asked this question in as part of my testimony is what is being proposed I.E the $220 enough uh and it was represented of Tarico and I responded absolutely not and I would still will still respond absolutely not I think though that again when you start looking at okay $1,300 absolutely if the state can fund $1,300 to the basic allotment to keep up with inflationary pressures that we've all experienced and realized since 2019 as I articulated to the committee we will gladly put that to good use take care of teachers and salaries and and student opportunities um each $100 uh to the basic allotment in in new resources is about $1.8 billion to the state so you can you can do that math pretty quickly that to get to that 1300 Mark we would have
033to spend all $23.8 billion plus some and I I just I don't know that I don't think that's a reality so so what is the number well as much as we can get okay I mean it really is that it's the simplest way I can describe say it in a more Angry tone because we much as we I'm sorry I I I think that there is a good opportunity that we could land upwards approaching close to$ 550 to $600 um in additional funding okay I I I think that that I think that that is a real potential okay and then I I had one other question when you were talking about um um reduction 10% reduction across departments um some staffing equ Ada all that kind what has um School repurposing or closure come up
034as a way to capture funding um I never know if it's a good thing or a bad thing but having live through it in another District it sounds like it is bringing more money into their budget um it's just that I doesn't look like a lot I yeah I I want to be real careful and not uh knee-jerk right um and Megan and I were just talking about this like I we were leaving City Hall um having lived 2012 um I know that as superintendent in Hamilton and I know that and Colleen um I think probably north side we had an approach that you know we just we had to make Financial tough fin financial decisions but we probably cut a little bit too much um I know I did uh or recommended cutting too
035much didn't happen and and it was just a well I mean it was just the information that we had at that time so I think we need to be uh somewhat careful which is why having the designated instructional uh continuity fund balance at our disposal again buys us just a little bit more Runway that um we can we can really like I say hopefully see this Crystal Ball start to clarify um so um I I think um that that particularly the house members that that serve on the public education committee I think that there is a def definite desire yes to pass some of their um legislative priorities but also to fund and take care of of public education this this session quite honestly I don't know that they can go back home if they
036don't this one um and survive um I say that from an election standpoint I'll make a U I'll make a quick comment related to the open enrollment part of I think just and it's a little bit of change what I may have said in the past but what's occurring in other things I think we seriously need to to look at that per se and I think it's even beyond our magnet programs um I know we emphasize that a lot but I think it's our looking at our our teachers and our staff you know where they going to schools uh what can we do in terms of getting more of them also attending our the schools that we have um I think it be helpful I think there's some things that could be very helpful in
037that particular space to help us on the revenue end think there may be some opportunities for some unique Partnerships uh to support some of our programs that maybe we could build with some corporations and others so I think in addition to expenditure and I think the revenue and is something else that yes sir we make a benefit from we've already uh jump started um so we'd like to do on that as and from that aspect is uh the next policy uh committee one take a look at policy but then also also take a look at some of the marketing information um that I know Barry and his team uh have already been working pretty diligently good good thank you good Mr PL Mr PL uh trusty Freeman thank you um regarding open enrollment when would
038we actually need to make that decision obviously people are making decisions about schools um for the following year and whatever happens with vouchers and eras people are going to be looking at that we want to have we want to have our news out if that happens at the same time so that if people in other districts are looking for options for private schools we want our option to be out there as well so when would you I would recommend April to your point I and I fundamentally I I don't think that this um and I'll I'll let like I say Debbie mcy uh speak to it I I think it would be helpful from a marketing standpoint to have it ready uh to announce and and pursue in April I don't know that it really
039uh necessarily changes because again the the recommended or recommendation that I would bring forward was okay well Transportation has to be provided um because one I don't think that we have talk about efficiencies I don't think that we're going to have the means nor logistically the ability to travel outside of our attendance zones um especially beyond the school school choice that we're already providing with magnet programs um Etc capacity uh capacity you know pending um I I anticipate that particularly as we start looking more towards the Northwest aspect of the district it's going to be harder to really open enrollment when we we can't we can't create a a capacity uh or over capacity uh situation um so so like I say those are going to be some decision points that will need to be
040structured within policy admin regulations um that I would suggest I would recommend if if we're truly wanting to pursue this endeavor April um which like I say we can we can have ready to bring to policy following the meeting in April I think we've already had it on the actually the agenda so working draft item if I'm not mistaken right we have we actually I Look to Barry already have pretty much a good plan including some of the marketing pieces that we're ready to go if if that's what the board decides for us to do and so we can bring it and show you what we have and initiate it of course with everything you said where there's capacity at our schools and obviously you said the transportation piece which are the two big drivers
041there as to uh how would we uh um push this out so we we have a plan that if uh if need be we can we can present one um Megan and this is probably a stupid question but there are no stupid questions right when it comes to budgets correct um is exer funds considered Revenue yes so between so it ends in September right it ended in September of 24 we're looking at 25 26 um I mean 26 27 we're only going to go down $7 million well not only but $7 million I thought we got the Esther money is in a different fund this is general fund so it's over in a federal fund so you do not see that extra money here right right right so the reductions here are for Ada enrollment
042reductions and some other things but that makes sense now the other question I had is um is transportation required by the state of Texas or is it a service that we offer because we love All God's Children special ed is required if it's part of the art um so that for transportation for students that need that specialized Transportation but the regular education transportation is not required we receive a transportation allotment um I don't remember what it it's a like I say it's a weit Tiffany if you can so so it it there is funding Associated but it's not a requirement Beyond on like I say students IEP special education bus driver I mean all of that is just because we want this for our kids well I think that that's a great point a lot
043of Charters don't offer best transport 6.3 million in transportation a lot 6.3 um I think that that's that would be one that I would hate to experiment with I'm just CL significant hit no no that'd be terrible no that I did not I didn't not advocate for that just just asking now I I will say that one thing to that point though Dr harl that can be looked at is you know what is what is a reasonable walk out uh radius um that some again some efficiencies something like yeah some efficiencies could be gained um still I I would just be we just think want to be really thoughtful and careful yeah um and I'd like to address U Miss Freeman's question on the unassigned fund balance uh Tiffany looked that up we have $270
044million in unassigned fund balance as of August 31st 24 the audited unassigned fund balance and the intent is to keep that at three months operating we we need to keep that we absolutely need to keep it at three months um it like I say just from a bond rating um once once that three-month operating uh fund balance starts to dip in starts to we start to dip into uh that's indicative that we're going to have some some challenges financially yeah I think I just say quick comment sorry quick comment on I think reason why I guess trusty Freeman I probably brought up this from from years ago um because it used to go up and down and be part of this picture per se so we look at our Surplus or minus and it would
045come from there but what you're saying now we just keep it separate the 270 and you're showing us the numbers that don't impact that in the out years correct we would still have to recalculate it every year as operating expens expenditures change to make sure that we are covering the three months so it it can e and flow but right now it's 270 okay thank you yeah well to to that point then when we have budget updates periodically throughout the year it would help if we had that too okay in the so we know where we were with that particular balance because I think that's appropriate to yeah absolutely um I mean it was I know it's it's a part of the annual audit but we can bring yeah we we bring as we look
046at budget amendments and such like that um I did have one other comment Bobby Mr ahead yeah um when we look at our marketing pieces um perhaps you've already done this but and I know that Bobby uh Mr blunt has talked about this before in committee meetings in that we need to also Market our own school choice within our school districts such that right now any student as long as there's capacity in any of our schools we have 83 elementary schools any child can go to any elementary school as long as they provide transportation and that there's capacity right and so that's that's a big opportunity for um a lot of people and there's a there's a lot of reasons where one student may just do better at a at another campus than in their
047attendance area so we do have those options and so that's important to yeah and and I think that market the way I look at whether it is inter or intra District transferability we're we're leveling the playing field right I mean if we want to talk you know really about providing um options uh Andor what has been coined as parental choice or school choice well let's let's make the playing field level for ourselves let's let's why should we why should we hold ourselves to certain standards regulations when it's pretty evident that we're pretty good option at least I believe we are especially uh like I say with uh parents that are already bringing their students their children that may live outside the district as they work for the district I I think that there's real potential
048um and again I I don't mean to create um this competition that could potentially hurt uh a colleague or a neighboring District but if we're really fixing to do esas and charter schools have that ability already and let's give ourselves uh that that opportunity so there are other large districts that do that right are there any other questions on this slide before we move forward the next slide I think Dr Craft's already covered this but we'll give him an opportunity to talk more in the legislative there's a legislative session uh and it is getting heated um yeah I I I'll be glad to answer any other questions I it I I still think that there's we've got some we've got some time uh um the sausage has not been made but it's it's starting to
049become clear and and I do think that uh the intent I don't I don't think I know the intent is to try to channel $8 billion in new Revenue toward public education coming out of the house so how we get there whether we get there when we get there uh stay tuned so now we're going to start talking about the actual budget discussions that we've been having um and working on so we have brought forward these items that are listed here that brings us up to around $40 million in reductions as Dr craft talked about earlier we have asked all central office um areas to reduce 10% of their budget that equals $10 million uh we are having meetings starting tomorrow with the different departments to talk about what that what those specific items are
050um to get to their 10% reductions and I will be asking each group as they come forward in those meetings what would it take for you to go further than 10% um you know would it be programs would it be you know what what what would you have to give up and is that manageable or not to go beyond 10% so because we do know there will be some increased cost cost in the district some things like software um electricity may go up property insurance insurance right we know prop we do have to cover more than the just the amount that we're looking at so we will be looking to see if anyone can go more than the 10% but the 10% is $10 million yeah and and again that that's a that's a starting
051point I think that the conversations will I don't they will inel well what efficiencies do we gain but then what are we not able to do I.E services and or support um uh that our students need to be successful and and so that's the that's going to be the real Crux of the conversation is how do we protect that instructional core um and then again really work to try to gain some some efficiencies so and I think that we can collectively we can get there one of the questions I'll be asking is can we do things differently you know have we thought to look at different ways of doing things that we are still accomplishing our mission and the programs we want to have but being able to recognize some savings and some efficiency so
052we'll be looking at that uh as was brought forward um to the finance committee talking about the Esser funds that we have some positions and some programs that were added with Sr funds that we'll be reducing again no one will lose their job I we want to make that very very clearly we are not looking at reduction in force we don't want that to be a concern but that those specific positions will be likely to be removed so I have a real quick question so St um Staffing ratio adjustments that means like instead of 1 to 22 it could be 1 to 25 or one to yes ma'am okay and then the yeah we'll we'll we'll in fact I think we have uh some spreadsheets that we share with you here momentarily and then the
053other question was wonder if one um there's an Esser it's not an automatic elimination of an Esser funded program program we would really look at it to see its impact on kids and teachers like the seeds program which is phenomenal in fact every year you said can we multiply seeds we want seeds to be at all our schools and that hasn't been we haven't had that Avail test because we just haven't had the money even before this right yeah um if if if it is directly impacting um Student Success things think of it as a that is going to be more sacred than some of the support that we've been able to add as really a result of erer funds and they it's been nice but we're just not in those fiscal times Economic Times
054uh do we have a list we can provide a list um I I think that um I don't think the the the vast majority of what we're um reallocating uh from a positional standpoint has been again very nice to have support positions um but we're just not in we're not in an economic position to be able to continue to sustain so um so yes we can we can definitely provide uh that list um Meg you want to yeah I'll continue down the list um overtime and time this is roughly half is what that dollar amount is there we will need to put some processes in place to Monitor and set expectations as we go into the next school year for those items so we'll work on that uh contracted service surveys are things from the
055central office that we'll be reducing and then the Staffing ratios that Dr harl um alluded to those those three items at the bottom so what we're looking at here is Elementary School uh prek will is currently at 22 to1 and we move that to 25 to1 under this proposal uh kindergarten through fourth grade would go from 23 to1 to 25 to1 and then fifth grade stays at 26 to1 under this proposal uh in the Middle School U from 23 to one uh to 25.25 to one is that proposal and then on High School uh 40 24.7 uh to one to 26.5 to one are the proposals so the the um Staffing ratios again um and Ben I'm going to uh put you on the spot but I believe to date we have hired 895 new
056teachers if I'm not mistaken I think that's what the number I saw yesterday morning so again um and with the 135 vacancies that we currently have um we're just going to work to get more efficient now again I I I will also say that um if you look at and I believe we've presented this information if you look at averages across campuses um there are many situations that we're not even in the 20s as far as teacher student ratio we're we're actually well below uh 16 17 and so as as we start looking at uh particularly going into next school year what what begins to happen from a economies of scale is as we were discussing in building committee earlier today if we only have two or three sections of say second grade or third
057grade that becomes really difficult um to be efficient um because you have to start making decisions well do we have 28 or do we go the other direction and just understand we're going to have 14 uh in those classes and so that's those are those those are conversations um going into this upcoming fall because right now I I believe one that we're going to be in a position uh financially that we'll be able to propose really close to balanced budget we'll give ourselves a little bit more time to see what is this impact potentially of an Esa um and then from an efficiency garnered standpoint does it make sense to close and or consolidate um a smaller uh Elementary or not because if we only gain a couple hundred, we've gone through a really painful
058process um which the community is not going to be probably real thrilled about and and if we if theic gencies are truly not there well maybe we need to look elsewhere um and again um protecting the instructional core and the in the classroom and and I think it just depends um you know there there there are definitely efficiencies gained through consolidation but you have to be careful in the sense well are you trading you know uh some addition FTE cost uh I.E School nutrition custodial Services um but then you're picking up um an exorbitant amount of Transportation cost and so those are the equations that we just we've got to be really like I say thoughtful and strategic and really uh there needs to be an efficiency audit to see to determine yes there's real
059savings here or like I said we might want to we might want to press pause lause uh and try to take care of students and and then maybe look at maybe some you know reprogramming additional program uh possibly a three-year-old program there there's like I said there there I think will be some other other options that we can explore as well trusty Freeman thank you um as we look at staff allocations um I just I don't want to make assumptions that we're doing this so I'd like us to ensure that we're considering the um capacity at each school because I'm thinking of some schools especially in the Alamo Ranch area that are at capacity and then we have some schools unfortunately they're not very close to them at a lower at a much lower capacity
060so I don't I don't know how that affects allocations but I would like to have that discussion as to what that might look like um as we go through process absolutely and the other piece that uh and thank you uh because that's an important piece of the conversation as well when we say um we're looking at a 26 uh to one there are going to be some exceptions particularly in and around school Improvement efforts I.E turnaround campuses that we're going to be that we're going to be very very cognizant of um for obvious reasons so and to me this this when we get into the the Staffing ratios I think that a lot of it is also going to be uh contention upon Workforce availability and even though like I say there are some pretty
061lofty initiatives that are being uh discussed that is partially inclusive uh or has been included in House Bill 2 I think we're going to continue to experience uh some real Staffing challenges um with just Workforce availability Ben you may feel differently and as you're um at job fairs this spring but I don't I don't think the SP it just is quickly turned back on and so I say this because we may be in a function of larger class sizes as a result of not being able to fill vacancies um just out of necessity now I hope not and we're going to work to like I say hire the very best and brightest but but it's going to take a little bit of time I'm afraid with programs like teacher incentive allotment um what happens with
062the required compensation and any type of finance bill I mean there there's we still we still got some challenges uh ahead of us from a staffing standpoint and like I say teacher shortage Workforce availability human capital so um so we we can definitely bring like I say a followup to positions specific positions but then also really what this equates to um particularly at the elementary level as Megan and I were discussing earlier Middle School and High School particularly High School it doesn't scare me as much um we have we've been very very fortunate in Northside to have the Staffing U ratios set where we have we just it just they're very rich so um and has been very very nice but I just don't I don't think that we're in that position that doesn't mean
063that we're going to have algebra classes of 40 um but we if the decision when the master board or master schedule is being made um can we continue to offer uh an AP geography uh World Geography uh human geography class with nine 10 students I me those are going to be the questions that are going to have to be asked that I would venture to say master schedulers have had probably the ability Freedom uh flexibility to just go ahead and offer that class and and again this is just the reality are there um also on the overtime I think everybody assumes that means just cutting but is there a discussion efficiency overtime for like police maintenance and others where as opposed to hiring that somebody yeah that's that's exactly and that's a great Point uh
064Mr blunt that we believe that overtime and compensatory time can be reduced um by again putting in some very much efficiency driven processes because what we've done um is we've provided the opportunity for overtime compensatory time um pretty freely um with um not a lot of checks and balances in regards to supervisor pre-approval i al go ahead and say it pretty succinctly um so that's where I say we'll put in some we'll put in some processes and um and and it'll have to be monitored like I say we we've been we've been very fortunate um to be able to operate um without some real significant budget restriction restraints that we're just we're just going to have to tighten up and Mr B just like so many of the things that are on this list and
065other things we've talked about there are always exceptions I think of a a small campus that only has you know three or four secretarial staff if two are out on FMLA you are going to have to have the other two have overtime you know so you so there are definite exceptions to all of these things uh but we've got to start it with a expectation and then work the exceptions good good thank you any other questions on this page and then we've got some other items just to um cover with you to make sure you know what we're working on Dr craft has already talked about the hiring free can I real quick on the sorry delay y but real quick on the hiring freeze so how do we balance out that discussion of there's
066a teacher shortage and then all the school district is saying but we're going to have a hiring freeze maybe no that's a great question so to kind of put this in perspective um uh we were just discussing um there's a a accounting position uh that we put a hold on got we have to have it so release it post it and so it's it's at least reviewed uh it do we have to have and again more of a support role whereas special education Ben has been given the green light to hire every special education certified teacher you can possibly find so it it uh math English where we have eight nine vacancies and we know that we're going to be hiring probably another or again 800 to 900 new teachers hire them okay so I
067don't know if I answer the question no you did yeah I guess it's more on Barry then to make sure that Barry and our messaging that doesn't just come out that we're not be hiring in the future all this is just a right okay bus drivers right bus drivers and custodian bus drivers custodians I mean again we've got we've got the vacancies that I'm not concerned about over hiring those positions where I'm really where I'm really looking I'm sorry M where I'm really looking uh to uh particularly our senior staff and cabinet members is as a support role that again performs a a very supportive function uh to a campus uh to a student population what what is the consequence if we don't refill this position that that's really the question right okay can we
068continue to provide the support and the services um to to support like I say the instructional core um if we absorb and don't don't fill that allocation yeah trust another example that that hiring freeze looks like it's not a good thing but take for example as the math department coordinator I may have an enrollment drop so instead of needing 18 teachers maybe I needed 17 but I had 18 so that extra math teacher might be needed at another high school so they would take that teacher and send over instead of hiring at the other school and letting me keep the 18 teachers that I had so that's where the hiring freeze allows you to say yes we're going to have it but not in the critical areas because we know that that chances are we're
069going to need Math teachers in all our High School Math teachers or science teachers no no I'm with you all on no I agree with you and that's a good example on the details I'm just doing it from a impact long-term standpoint that if we put out a messaging we're doing a hiring freeze and they're not going to see the rest of that per se we need just making sure how that's a great point you may need to change the word to say targeted hiring free or something yeah we're we're open to business hiring review maybe that's Justified hiring something like that hiring review yeah okay good point great Point great Point uh the next item listed here is summer school and um Dr Jordan brought forward a a plan to cabinet today on um
070looking at the again things that were added with the ESR money and looking at different ways of providing uh the necessary of course the and Dr Jordan could probably cover it better but the mandated summer school of course we'll have if if if the students that need to have the remediation um that will be in place and then there still are enrichment opportunities but we've brought those back some and we've reduced it by nearly half from last year cost wise yeah with the summer school again that we we've had the luxury of some really very nice to have um enrichment programs it just again with the err funds being um with Sr funds expiring that which was the primary source of uh funding those programs we just we're going to have to make some tough
071decisions to cut back and of course support like I say what's required um in particularly with students we don't want our students to fall behind but some of the richment activity we're just going to have to put a a pause on the next time I believe is self-explanatory about travel uh then we talk about a Vader uh a tax ratification election uh we are working with uh someone at the state level on doing estimates for that and that would be November 26 so it would affect the 27 budget so it's a ways out there but we want to make sure that it's in front of you and you know that we are looking into it uh the timeline for that we would actually start having the the real discussions in the board taking action on
072items in the summer of 26 so we would have to do an efficiency audit as part of that and then that's when that timeline really starts coming coming into fruition for you to know part of that that process is that the board would actually take a action at the time of adopting the budget you would adopt a tax rate that is higher than the tax rate that we would standard have standardly have at that time of adopting that higher budget is what implements this whole process so just for you to know the first action is the board adopting a tax rate that's higher than the calculated tax rate and then it starts the election process so lot we'll have a lot more conversations about this but want you to know that we're running models on
073it and we'll be bringing back more information on that this is not a fast quick process so yeah not to not to complicate this part of the conversation but one of the things that's also being proposed through uh legislation um is one uh Bond elections being a a uniform date I.E uh November but then also whether it be Bond and or a uh voter approved tax ratification uh election a 2third majority oh to pass and there's a pretty good chance that that may that that may become legislation um I think that there's definite appetite in both chams um so so that would change that would that would change the complexion of of how we go about really educating the community and uh voters to be able to make an informed decision when they when they
074say that that they want us to get 2/3 majority what numbers are they talking about the people who voted or the total Community those who vote those those two3 of registers y yes ma'am trusty Freeman um yeah question has there obviously we need to I mean there's some things that we need to comment on and testify and get a hold of the people people that um have written the bill um I assume that that's happening but we need to be involved in that yeah yeah I think I think that's absolutely really important particularly as like I say the house is beginning to really gain inertia the Senate um I mean what's been proposed is is is what it is um but but as these bills are really being refined uh absolutely is I know that
075uh I know that um tasa daily I think we're still forwarding uh that daily update which includes a legislative um update I mean as as bills are being proposed U like today um yeah we we can definitely provide that information in that particular bill um do you know is there anything in there about trustee elections that have to I believe there is does that follow through with the bond the trusty elections need to be in November I think that they're separate uh if I'm not mistaken i' need to look at it I know that there is there are some trustee uh election there is some Bill language that's being proposed though um also I believe once again uh moving towards a uniform election date so we'll we'll pull that information for you as well yeah
076there there's some there about a thousand bills that pertain to public education that a lot of which are are not it's not great legislation so a lot of it won't make it um that's just the again how the process uh is designed very intentionally but there could be some that um would not would not be real helpful to like I say public education in my humble opinion as we talked about in um uh facilities meeting today our last Bond was approved by less than it was approved by less than 60% so with what you're talking about it would not have passed had we had the 2third that's correct and we truly had well I just remember the bond being involved and yeah well and when you look across the State hitting that 67% voter approval
077threshold that is very different not many make it um and I don't know as far as athletic facilities which have to be already uh separate propositions independent propositions I don't know there's one that even remotely comes close to surviving maybe a couple but definitely not uh an overwhelming majority um so so that that one like I say is is um probably going to hit the docket and will be calendared here within the next two or three weeks if not sooner Dr craft you had uh mentioned the uh ratings agencies have they uh have they talked about anything have they mentioned anything about pressures that we may be seeing here obviously they're following the political scene but Tiffany and Megan just had the conversation with the underwriters what last week if I'm not mistaken before spring
078break yes and we actually have a meeting with Fitch tomorrow and so we'll get more information there had they mentioned any concerns at this point about the market AC we're not unique in the challenges so that helps us I would I would say thank you it is a Statewide concern it's a good it's a good question uh I know that our next trunch will be sold uh summer may may may okay so we'll be we'll be paying close attention and so the um possible Bond it was on the here also I think we've covered that piece so yeah let me let me let me the potential Bond 2026 you'll see that and it and it may not even be an option so but I do think that um combining the efforts of a bond um
079proposal along with a potential uh Vader um so that the community doesn't obviously feel like oh wait a minute you just came to us with a a bond now you're turning around and coming back uh really talking about operational expenditures or cost needing assistance so I I just think that particularly if it's a two-thirds majority for both uh and like I say um consolid to those those efforts now there'll have to be obviously two elections there'll have to be two two completely different um proposals but um from a a Vader again what we have access to is what we refer to as golden pennies uh there are three um and as of right now again on valuation but uh we believe that probably property valuation based on our last most recent conversation this afternoon will
080probably be modest but maybe even flat growth and I believe that we've we've calculated uh that each penny will generate about 15 to 16 million million dollars in additional revenue and again uh we will not be subject to as much recapture with those three those three penni so definitely worth to look at going forward but but we are not in recapture yet would we anticipate that in the near future I don't project it in the near future okay now I just wanted to be when you mentioned that I just wanted to be clear a lot of well it depends on a lot of things um the housing indust hisory um but um I don't I don't foresee and Tiffany Jake you look at it really closely I don't foresee in the next in will in
081the foreseeable future to be subject to recapture but that's based on current law and like I say we're making a lot of assumptions right now and so the the Vader options you they're 12 cents available the three cents are the golden that are not subject to recapture but the nine additional cents are subject to rec so we aren't there right now but it's important to recognize that if we do make a decision to go out for the nine additional pennies that if we get into a recapture situation those would be subject to it okay any other comments questions oh I'm sorry oh no you're no you're correct sir so next steps um we um next slide is just a thank you but our next steps we are going to continue to have our disc discussions
082with the Departments and with our departments uh and continue to look for efficiencies and ways that we can save money or reduce budgets as we continue forward I mean this is this is multifaceted um efficiencies budgetary reductions but then also potential additional Revenue depending on what happens with uh this legislative session and and the Really the school Finance uh vehicle that continuity of instruction uh fund we just need to be we need to be careful not being overly Reliant in allocating or dedicating uh partly because uh we're going to probably need some of that funding to kind of see what happens to Ada average daily attendants um in and around an an Esa and again uh if the board enacts a truly programmatic choice for uh students living outside the district what does that impact
083um um so so having that little have I say little having that uh uh tangible um is is probably going to be really really important to to buffer ourselves against some unknowns that I just don't know we're going to have answers to even before before we get ready to kick the school year off in August um I me it's just there's just going to be some things I think as a result of this session that are going to be almost impossible to project or predict so good I'm oh sorry Meg I see if there are any other questions for us at this point I don't have a question but in in hearing everything that you both have told us tonight how is our community knowing about all of this don't don't you all think that
084our community should know what's going on yeah I mean I me the impacts that all of this legislation is having well how can how can we yeah get them to to hear us well my initial re reaction or response elections have consequences we knew that as a result of um what transpired uh then in May with the primary elections and quite honestly it it was not and then again in November but it was not it was not um I don't think any secret that th those election and election results were not pro public education individuals that um took some of these offices so that's my initial reaction um I I think that you know again we've been very very fortunate in the sense of we've been able to shelter as a result of some really
085strong financial stewardship um but as we're looking at our enrollment we're looking at again three four fivey old student populations I mean we've got to start making some adjustments that hopefully will not be too impactful and be uh felt um you know by our most our most important um customer which is our obviously our students um and then and then continue to really push as we are advocating uh for legislative support um with additional resources and funding but we're this this is not a unique to North Side conversation right now I can most definitely assure um you as a board that these are the real conversations that are transpiring particularly in school districts that are um reducing uh student enrollment um I mean these are these are real conversations that we're having to have um
086and again I I don't think that we're quite in a position to have the conversation around closure consolidation of campuses uh right sizing if you will um I think it's one that we can definitely start looking at more closely once we saw start to see kind of what the impact overall impact of um transferability and for true true Choice um um with with a probably more than likely an education savings account um being being offered so okay I don't know that answer your question come to board meetings trusty har so I mean you bring up a really good question Karen um you know the other night when we were at the partnership um ceremony it was interesting that people that love North Side are still not well versed in um vouchers and you know all
087kinds of diverging diverting of funds from public Ed to Charters or anything else but I'm just wondering if there could be an opportunity though that um and maybe we take you out of it so it's not as Norths sidey and have some sort of um forums you know Zoom forums or iners forums where it's someone like Julie grard or someone like um Kelly Ry or someone who's not yeah and and just say in generalities these are the things that are going to hit the state you know almost like the reports we get um from various um entities and just inform because um even at the voucher rally there were people that um they were saying all kinds of different things and and it was important because you know the bottom line is vouchers will impact
088puet in a negative way but um people like the the ones I've mentioned I'm sure I'm leaving other people out could do it in a non Northside way but yet here unbiased thank you here information this yeah you can definitely work to range like a town hall yeah a town hall and maybe even um a ver virtual versions of that um because um we were talking the other day the two that I was talking to are retired teachers who love north side and are very active but still we're asking me questions and so you know opportunities to hit our community Through Zoom or in person this is a great uh place just because I think the language there's there's needs to be kind of some common language and common understanding around these things um I
089agree and and maybe they and then how you kind of take this into action here's where you can email your representatives a real easy way instead of you know looking up their email you just plug it in plug and go kind of stuff this is where I I I I feel much more optimistic today than even two weeks ago because I do I do sense that it is beginning to resonate uh through communities uh their disappointment and and potential disappointment if legislators don't work to take care of public education that I am feeling I am sensing that I think it's going to be next to imposs again for them to be able to go home to their communities um and save face call it if if you will if they haven't taken care of public
090education and they may do some other things but I do sense that that is that is beginning to resonate which I don't know was a couple weeks ago yeah no I I I hope so I think maybe because we're in the middle of going to different things and um people are asking us a lot of questions and it's very clear they don't don't know what they don't know and it's hard to just say oh this is what we want to do in North this is what we're planning on doing when they don't have some of the background knowledge of it I also think that it's it's just a kind of a right thing to do that that this is going on in the state so let's let's bring in our communities so they understand and
091almost kind of create that kind of feeling that you're you're having I feel with Educators and educational leaders I just don't know that the community so if we had to combine dual language classes or whatever that used to only have 11 and 12 in it they would be ready for it because they certainly got the why and and what's going on so I think that's where I'm coming from the other is I I think sometime in Norths side we're blessed with this we've got a great district and sometimes we get a little complacent and because we know we're all we're all going to be we're going to take care of you we're we're north side we love you but there is kind of a lack of and and this is just my experience because I'm
092out there more now is that there's a lack of urgency and understanding those two things like um and and really what can I do with that how can I take my anger to agency or advocacy or something like that because I'm mad at vouchers but you know I can I'm in the classroom all day long what can I do oh there's three things you can do you can do this this and this but but even the command of that is is a little challenging so okay yep I agree okay yeah I guess what I what I'll add is uh I'm sorry I'll be quiet uh to me I think we really need to focus more on local I don't tell people to go to legislators for whatever reason I whatever I have good relationships Etc
093but to me we can solve it ourselves and I think we need to push more of that we get our enrollment up we get everybody within our areas to make sure they attend our schools or bring a friend with them to school uh if we're prepared for what we talked about for example if it does be 67% I I don't know when we've gotten 67% of our bond but if we prepare our community for that we're prepared for it so I think we need to have more the talk on hey this is what we can do locally because I'm not going to rely on legislators and others and never have and never will per se so I think that's where we need and that involves more people I mean all across this District inside of
094410 and others of I'm telling them hey look I need you to attend a school I need a teachers every single one of their students attending these schools Etc I think that's part of the message you that we can really get them to Advocate and give them action on how to do that yeah trusty Freeman to add on to that though um it's important for people to know that elections do have consequences so it's important for people to know who who wrote the Bill and who attempted to get to get it passed because if we if we don't we cannot tell people certainly from this dis we cannot tell people how to go vote but we need to create that urgency for them to know they need to know who their legislatures are because they
095need to know who supports public Ed and who doesn't support public Ed so so it needs to be a combination of yeah a combination of awareness yeah I'm with youall to some extent but I don't know maybe maybe I'm wrong but San Antonio our legislators and others are pretty supportive with very few exceptions it's the Dallas and Houston lost a big one yes the Dallas and Houston I worried about more that drive things as my thought Etc so I agree it doesn't necessarily have to be that way though I mean it doesn't it's not 100% around I think both would be nice I I get what you're saying too um but Steve Allison took a big hit and so you know I just think that more people knew um I I just think it's it's
096it's something that um is almost like a responsibility I think when we talk about advocacy as part of our role as a trustee um that advoc advocacy can take different shapes and forms so I'm with you Bobby I hear what you said and maybe we concentrate too on you know really working hard with our local leaders um although we know how wonderful they are but um like City Council to and some things like that we could probably do it more in depth because there're I I I know I had a discussion with someone who's really kind of not getting public Ed and doesn't have their children in public Ed and yet they may have a city council spe uh seat or they may win as mayor and I want them have a good command all
097around at all levels so I I know I'm wishing for the moon but I I don't think that the first idea could hurt I think it could just help help especially if there were groups of people that wanted to do something about it um sometimes people just just help me with something to you know to do so I can um make an impact good good good any anybody else comments still got a lot of work to do uh to prepare a budget but I'm pretty confident um that like I say collectively we'll we'll be able to bring like I say as close to a balanced budget for um fiscal year 26 as we as we can that supports like I say teaching and learning and what's most important which is our Student Success thank you
098all for having scheduling this discussion I think it's been extremely valuable I know we're going to meet again next week but I'm glad we had this one and unless there's any other comments or questions that's that's everything we have for this evening so and thanks for those that also attended thank you so officially call the meeting for