001You need it. Heat. Heat. Pink. Aha. Heat. Heat. Heat. Heat. Heat. Heat. Heat. Heat. Yeah, we found it awful. >> Good afternoon and welcome to the board of education work session for Gley Evans School District 6. This meeting will now come to order. Miss Lemon, will you please call the role? >> Director Azari. >> Director Bentley, >> present. Director Campus Spitzy >> present. >> Director Edmonds >> present. >> Director Lomos Garcia >> present. >> Director Mash >> present. Director Roi >> present. >> Six board members present. >> Thank you. And Director Azari is excused this evening. Um our first item is to review our calendar which looks much smaller than it did before graduation. Um so this is our last board meeting for the summer. We will take the second meeting in June and the
002two meetings in July off. Um we do have the opportunity for a legislative wrapup tomorrow at UNC. Um if you haven't attended that in the past, some of our local legislators um attend as well as the lobbyists for Ames Community College, UNCC, our lobbyist and also I believe the chamber. >> Yes. And actually our lobbyist is out of town. Okay. And so uh Mr. Fall, attorney counsel for the district, will represent uh K12 education. Okay. At the event tomorrow. >> Excellent. Do you know which um legislators might be in? >> I do not know. I have not seen anything on that yet. >> Okay. Well, that's that's a great event to attend and and hear how things that went through the legislature will affect us as well as our um other community entities. Um we
003also have our GAP summer graduation as well as Habitat for Humanity um impact breakfast. Um another event that you would like to attend, I will let you know that you would like to attend is the district 6 community kickoff. Um just a whole lot of fun. We have thousands and thousands of our families come um receive a free backpack full of um school supplies and then many um local vendors, nonprofits um are there to offer their their services. You can get on the smoothie bike, get a smoothie, talk to district wellness. Um there's like Dennis, there's the library, there's UNCC. Anyway, it's a lot of fun to just welcome our families back. And uh President Mash, I'll just share that we are still um accepting participants in that event. If and that's unusual for this
004time of year. Usually all the tables are full by now, but if uh organizations are interested in being a part of the event, they could go to our district website and go to uh what's where do they go, Casey? >> Uh kickoff. >> Okay. >> Um or and then sign up >> for sponsorship. Sponsorship. Yes. Um, as a board member, we just we just walk around and say hello and um >> if you need actual >> volunteer like help, let let us know. >> I will. >> Okay. >> Yeah. Thank you. >> Um >> we could share the social media post maybe if you guys are still looking for >> Okay. >> Um and then our first works uh first meeting for the 2026 27 school year will be on August 10th. Um Dr. Dr.
005Pilt, would you like to tell us a little bit about the GAR um lunch? >> Uh well, this is different than what we have done in the past, so I'm I'm a little uncertain about it. I mean, usually uh president usually I would go, sometimes the president would go with me. Um usually the chief of communications would go with me and then we would present at that lunchon about the school district. So, let me get a little bit more information. Um but this this this is an association that meets monthly. It's it has realators and loan officers and real estate appraisers and in um inspectors. Those those kinds of folks are the folks who attend. It's a networking event for them and then they give us time to present about the school district. So I
006I need to find a little bit more information out about that event. >> Okay. Well, we got some time. Yeah. Does anyone have anything else they would like to add or discuss? All right. we will move along to our board member comments and let's begin with Mr. Edmonds this evening. >> All right. So, uh, it's just a wonderful, I mean, I know still within the first year of being on the board, but I think participating in all the graduations felt like kind of a culmination of really that I don't even know if I want to call it honeymoon stage, but really seeing full picture of why the board is so important because to be able to shake hands with hundreds close to thousand students and tell them all congratulations to be firsttime high school graduates.
007To see people stand up who are going to be firsttime college gradu or college attendees was just like it brought full circle just why our work is so important and why our students are really should be that number one priority. Um I think maybe the most heartwarming was to allowing space at the um was it west or central where they had the two students graduate ahead of time. I feel like that was that was Gly West. So just even making room for students who have >> certain um needs, but to make graduation still an opportunity for them is just wonderful. So hats off to grounds crew um to all the administration who uh put in hours and hours of making sure the fields are ready and the chairs are set up and that it was
008just a successful. Thank you to security Wade. I know that you had to be at every single one and just providing that that space for families to be there safely and have a good time and and congratulations to all the families. I know it was the students that did the hard work, but also the parents um and siblings and grandparents who helped them get to that to get to the stage, whatever stage they walked across. Um uh more hats off and kudos to students at Gley West. They hosted a theater camp this last week. my daughter was able to take part in that. It was just wonderful kind of an introduction to theater, but also to even planting that seed ahead of time of just what their options could be as far as what high
009schools they look at to attend. So, it was at Gley West for three or four days and kids worked on songs from Annie and then had a performance. I unfortunately wasn't able to be at at the performance, but my daughter loved it. So, thank you to those students who helped lead that. Um, a thank you to District 6 staff. They came in last week and volunteered at the food bank um a couple times Wednesday and Thursday helped us uh repackage bulk eggs. Um so it's just wonderful to see that opportunity for the give back program that District 6 does. So any um D6 admin or teachers or anyone that wants to take part in that uh Weld food bank is always always looking for help. So if you're looking for a quick easy team building
010um please reach out to our volunteer person or reach out to me. I'm happy to connect you as well, but just thank you for for that. And then lastly, I want to say congratulations to Miss Nicole Cox, first grade teacher at Hyman Elementary, on being named a 2027 teacher of the year semi- finalist. So, it's just again, District 6 has amazing teachers. They have amazing um administrators. They just have amazing people working here that's continuously getting that recognition. I know just even being nominated as you always hear at the Academy Awards, it's always wonderful to just be nominated, but to have so many teachers and you make it to the top 21, it's just incredible. It just speaks so much to what Miss Cox does there and what Heyman Elementary provides for their teachers. So
011just grateful to continuously see District 6 um in the in the news. So that's it for me. Thank you. >> On a roll. >> Yes, on a roll. >> All right, Dr. Kemp Spitzy. Yeah, look, I keep kept mine brief. I can type them out. >> Um, so graduations were amazing. Um, and uh I I you know, you said you have honeymoon eyes with school board and graduations, but they still tear me up every time. The student speeches are always my favorite. Um, and so grateful that Gley Central was willing to move from their traditional D6 stadium graduation to Nottingham Hill or Nottingham Field. Um, so I know sometimes that can be hard, but I'm grateful that they were willing. Um, I also wanted to give a a shout out for a camp um that
012happened last week at Ankheimman. It's called Camp Invention. Both my kids got to participate. Um, it's a STEM camp. um lots of sponsors like Wellress sponsored it and a lot of other very generous um sponsors to where I think it was 20 bucks for the whole week which uh I think might have been an error but it was very affordable for families. 180 kids participated and had an absolute blast. And so Mr. Zwickle who's the smart lab coordinator at Ankheimman was the camp director guy and he told the kids they can call him Mr. Zwickle Mr. Z camp director guy. and my six-year-old was like, "I'll just call him guy." So, he shortened it. Um, and uh, just wanted to make some comments um because it's our big budget meeting, end of the year budget
013approval meeting. Um, encouraging folks um, of all the pages to look at. I think every year I highlight different pages. Um the one I felt um most wanting to share and to highlight for folks out there was page 52 um which uh has the breakdown of the general fund compensation by job classification. Um, so I've always been proud since I've been a schoolboard director almost five years now that we run lean in this organization. And that page 52 shows you that we do that um 60% of our staff is certified, 31% is support and less than 10% are are school-based and central admin. Um so just encouraging folks to look at us under that magnifying glass as they should. Um but to be reassured um that we do put our dollars mostly in the classrooms
014um by a long shot. Um I know at the this work session we we're going to get to talk about initiatives 195 and 135 a lot more. Um so I'll be brief about that, but um I will say personally I am highly invested in in this initiative uh passing. Um, right now there's 35 Senate districts and we have to have 2% of signatures from each of the 35 Senate districts to get this on the ballot. There is no corporate interest, so there is no money behind the this initiative. So relying on volunteers circulating this petition. Um, so a a call to the community, to the school community, if anybody wants to carry a petition, I can give you one. Um, so far I have completed 11 and there's 40 40 signatures on each. So, I've
015collected a total of 440 signatures. Um, have talked I've gone a lot door knockocking a lot and talked to a lot of educators because I'm coming at it from the fact that it'll raise potentially 19 million starting next year for just district 6. Um, and during our budget meeting with our CFO, Megan Sponsor, um, she pointed out, you know, what D6 can do with 19 million because we did it during COVID when we had those relief funds and we were able to bring our classroom sizes down with those 19 million and it was a priority and it happened and then COVID money went away. And so it was really cool for Megan to kind of put meaning behind those dollars of that this district in the last five years have proven what we will do
016with those 19 million um and and excited um to see. But yes, out of 35 districts, Gley is in third place in Colorado for signature gathering, just behind Denver and Fort Collins. So I'm pretty proud of that. Um and did want to give a shout out to the report to the community. I have gotten so much positive feedback about this report. Um, I think we've gotten to live through our celebrations over the years, but to see them all in one place back to back to get to see all of our our teachers and school counselors and superintendent highlighted and the fact that we have 18 schools at performance level, which is our the highest rating all in one magazine, um, is is pretty impressive and makes me so proud. Um, and then I also wanted
017to give a shout out to Nicole Cox, first grade teacher, Anki Heyman. Um, and so Weston pointed out she is one of the 21 finalists out of a,380 teachers. So like a really big deal um that we keep getting recognized and that we're we're doing something right in D6 and our educators are heroes. Um, last but not least, I wanted to say happy pride to our Gley and Evans District 6 community. I am an ally and a friend of the LGBTQIA plus or queer community. Um, and just wanted to say that I see you, I accept you, I respect you, I support you, I admire you, and I love you. Um, and wanted to invite everyone to a family-friendly celebration this Saturday at Ames Community College from noon to 5:00. Um, they have a pride
018celebration that's really awesome. They take over like the first three floors of that welcome center and have a lot of fun activities. So yeah, that's all. >> We are on a roll. >> Thank you very much. Um, directors Garcia. >> Yes. Um, I too like Weston feel that this first year of being on the board has been just such a joy. Um, learning, absorbing, watching, uh, listening, um, has just been so amazing. Um, and then to end it all with the graduation. So, I figured I attended nine graduations and high-fived, fistpumped, or shook over a thousand students. And just to see them cross over that stage and hear the crowd and their parents just feel so proud was just um so wonderful. I don't know why I'm getting so emotional, but and it really is.
019And then um you know to hear the music from the choir and the orchestra and the band and just how proud they are. It's just it's just such an amazing event. Um I think one of the pieces that really resonated with me is when I heard all of the speeches. It's all of them really um had one full message and it was for people and humans to be kind. and um hearing all of their speeches just really um made me feel proud to be a part of district 6 and all the collaboration and the same message that was sent even though they were different schools. Um it was it was just such a great um time to be a part of district 6. Um I also want to recognize Nicole Cox and and uh congratulate
020her as well. um as everyone else here today. Um and mine is short and sweet, but um certainly the graduations was really the one that's that took my heart away. >> Thank you, >> Director Roi. >> Well, I'm trying to look back on this calendar here and I'm I can't even remember some of these events that I went to, but I think um I because we didn't have that board meeting, I went to the Frontier House breakfast. Um that was a a a really nice event. And then a real highlight for me was visiting the transportation center. That was so impressive and just um just could not believe the complexity of what they put together in terms of making runs and all of that kind of thing. And um also the movement forward and making
021those jobs appealing jobs um was really encouraging for me. and uh just the pride that um is felt about that center. And then just um just the graduation's kind of ditto in terms of what a kind of a neat way to wrap up um the first year of being on the board and how quickly it's gone. It's just very gone very very quickly and just exciting to see a kid kids on that day in their life. that's just it's such a big thing for them and their families and to be a part of that and and to feel um like we get to gradu uh congratulate them that was just a real honor. So yeah, I just I it was a wonderful way to wrap up the school year. >> President, >> um I'm very
022thankful you guys are so thorough. It leaves very little for me to talk about. Um, in all seriousness, I am very thankful for for the diligence you guys put into your board seats. Um, you know, the the contrast from previous boards to this one is is night and day and it it makes it a lot uh easier and and less demanding on on all of us that have, you know, other responsibilities and duties. So, thank you guys. Um, everybody kind of covered everything. I don't really have much to add except the graduation season was a a huge success and it was really fun and uh like always you know everybody did an outstanding job. Um, Robin Robin is right. The transportation district is probably one of our uh uh I don't know if you want
023to say unsung, but maybe uh less less spoken about uh gems here in the district. And something they should be really proud of a shop like that uh running like they do. And then the work they do uh day in and day out kind of uh unseen and behind the scenes is is is very impressive. and then um yeah, just excited for summer and and everything that that holds. So, thank you guys. >> Yeah, I think we've we've been saying this for as long as y'all have been on the board, but we just really appreciate you jumping in with both feet and it's really fun to get to see your your enjoyment of what we've like Yeah, I know. It's so great. And now you get to be a part of it, too. So, um
024yeah, thank you to all the teams who set everything up for each different graduation. It's so much fun to see the different um personality that each school brings to their graduation uh ceremony. And thank you for highlighting the the report to the community. And yeah, we now have another teacher of the year semi-finalist and Billy Martinez Elementary School of Excellence award. So, we just can't even keep up with all the amazing um celebrations in District 6. So, >> getting sick of all that winning? >> Yes. All I do is make our new theme song. >> And imagine what we could do with 195. >> Yeah. Right. So, this is a big meeting. We're making, you know, this is very much the the the crux of what board members do, pass the budget um and pass
025all of the the contracts that are needed for the district to run. So, um we get to celebrate and we get to do some good work and have some good discussions. So, >> can I add one more thing? As we talk about budget, I just want to give another shout out to Megan. Thank you as a new board member. It was a lot to take in. Uh Dr. Brenda helped me when I was running for school board to see some of the things, but thank you for your thoroughess, for your intentional working with that to help us understand it, but also make a clear document. I mean, somebody says they can't find something, they're Yeah, I know that you're open for those questions, but like this is so well laid out. Thank you again. And
026with that, we will move on to our discussion of the proposed budget document. >> I could have saved that comment. I thought you were leaving this part of the >> Perfect. Yes, >> we will. I will read page one. Who wants to read page two? >> You're not done with me yet. So, as you have mentioned, I did get to meet with all of you and we got to go through the the budget document and I was able to answer questions, but I'm sure that as you've had time to process, you might have more questions. So, I just wanted to kind of hit some of the highlights that we talked about already um in this public work session so that the public can hear what we're looking at in terms of our budget. So, just
027to start off, um, two pieces of key legislation this year. We have the, uh, House Bill 241448, and that is the new, what we still call the new school finance formula. It's not so new anymore, but it's still a work in progress. And then Senate Bill 2623 is the school finance act that will fund schools for the coming year. So in that school finance act that um increased the base per pupil funding by about $29. That's about 2.4% for inflation which is required by law. And it also phases in that new school finance funding formula at 30%. And so the way they calculate that is they look at the old formula compared to the new formula and they take the difference and 30% of that difference is what we get in additional funding. And so
028when you combine those two the total increase is about 3.5% in our per pupil funding. So looking at our revenue from all of our funds and just a reminder that we use fund accounting and so we have lots of little checkbooks for a lot of different things. But when you look at all the revenue from all funds, this is what it looks like in terms of this where it's coming from. Most of it is coming from state equalization through the school finance formula. um state grant revenue and then we have a big chunk from our local property taxes and you can see I've broken that out into three different buckets of local property taxes. So we have the operational portion that goes through school finance act. Then we have the mill levy override. So that's
029something that our voters have approved and then our bond debt and that is something that voters have also approved to pay for our new buildings. So all in um our revenue is about $440 million. So on the flip side when you look at the money going out. These are the appropriations most of the money again goes through the general fund. That is the fund that we have the most discretion over in terms of how we spend it. But we have some you know some other funds. our special revenue fund that is the food service fund. So Danielle's fund runs through that. Our grants fund is a special revenue fund. We have our capital projects funds and debt service and then agency funds. So I'm taking you from like the 30,000 foot view down a little
030bit closer to just the general fund. And so a big part of the school finance act of course is the number of students that we get to count. And so we're projecting a decrease in our funded pupil count. So we're projecting 79 fewer students. That's about a4% decrease. And you can see that the total for non-charter schools is 17,078. And our charter schools we're projecting 5,024. for a total of 22,102. Now, this graph, I think, is important to point out that when we have declining enrollment like we have had for the last couple years, that the funding doesn't drop off at the same rate as our pupil count. So that helps us because we've already committed to paying people for teachers in the classroom or um having curriculum available, all of those things. And so
031when the revenue drops off at a faster pace like the enrollment does, that really creates a budget problem. So this really kind of helps soften that blow. We have a little bit of a softer landing. We still don't like to see that declining enrollment, but it makes it a little bit easier to manage. And then this graph shows the trend for the per pupil funding over time. So this is the first year that we will be over $12,000 per student. So that's exciting. You can see that over the past five or six years, we've made some good progress in terms of pupil funding. still not where we need it to be, but at least it's going in the right direction. Those first few years on that graph, um difficult financial years, and those were years
032when the budget stabilization factor was in in effect. So for our general fund we are projecting revenue of about 330 let me get that number exactly 340,000 340,462,000 um that is mostly coming from school finance act and so I like to point out this chart because I think it's so important that we all realize what the significant role school finance act plays in our funding. Um, we have to pay attention when the legislation is is being written and debated. We need to be paying attention to everything that goes into that. And so this was one of those years where something got changed at the last minute and we were like, "Wait, wait, wait. that has a big impact for us. And so we were able to get that undone um just in time for the
033bill to be passed. But when 86% of the funding is really coming through one piece of legislation, that's pretty significant. And then this slide shows that our general fund expenditures. Um, as you would expect, most of that goes through salaries and benefits, but I think it's important to share that 84% of our budget goes into people. I was um at a meeting with another board last week and they asked me that question and they were just shocked that so much of our budget goes into people. These are business people that don't operate an organization like this, but for them to have so much money tied up in people was just unheard of. So, I think that's something that we need to remember. And then this shows the expenses broken out by categories. And so, these
034are all defined by CDE. All the districts in the state of Colorado use the same categories. And it's a way for them to kind of compare how districts are spending their money. As you would expect, the most of the money goes into instruction, but that's not to say that other um functions are not important. We've talked about transportation, that's important. Operations and maintenance, we need to keep our buildings running. So, all of these different categories are important. And then this chart shows how the the money is going out to different departments and to schools. And so often we hear you should keep the cuts out of the classroom. And we try, but my point with this chart is that most of the money goes into the classroom. And so there's just really not much that
035you can cut without impacting students in some way. And then the last thing that I wanted to touch on is our fund balance. And so you can see that that purple section of that bar is going down. We are proposing that we will spend some of our fund balance this year on a few things. Um the first thing is to transfer $3 million into our health insurance fund. That's really to just shore up that fund to make sure that we have the money there to pay claims as they come in. It's possible that we won't have claims, but we'd rather have it there if we need it, and that's something that will stay there long term. So, if we don't spend it this year, it'll be there in the future. Um, another thing that we'll
036be spending the fund balance on are the coops for our new building. So, that's about 3 million. And then the last thing is uh $2.2 million to go into technology. So that's replacing Chromebooks, staff devices, um teaching walls, those kinds of things. So with that, what questions do you have? Um, I want to point out something actually that director Bentley and I discussed um earlier today um about the IT refresh. And so it was about how the state actually tests our youngest ones, the kindergarteners on screens. And so that that's one of the reasons because I've always thought it was very silly that my kindergartenner has a laptop. Like I just I think that even sounds silly, right? Um, but yeah, I I wonder if there's a way to reach out to the state board
037of education and be like, can we do bubble sheets for kindergarters? Like, do they really have to test on a screen? Because if that's the reason we have screens in kindergarten, um I I can see that that you want them to get used to a screen if that's how they're going to be tested. Um, but I wish that was the case. >> Yeah, that just shifted this year actually to a requirement. We had the paper pencil option for testing up until this year and than it was required this year statewide. And part of that is uh as school districts, we've been asking for a quicker turnaround on test results which we we are getting. We have the first run um of our our CEASS data from the state. It has already come in last week.
038So, um, they did they they kept good on their promise by doing it all electronically that we would get results earlier, but we we did see some dip in performance in in schools that went to the online version for the first time because, you know, students haven't practiced as much. >> And so, it's the third grade assessment where students begin testing for CMAS. >> Yeah. Yeah. I I can see the turner wanting the fast turnaround so you have like actionable results that aren't like so late that you know it just feels like but man I think >> and it's all and it's also just workload and I I think for the for the state it's also on their part it's workload >> just a comment. >> Thank you for that. Maybe those laptops last a
039little longer because they're not used as often, but maybe they get dropped more often. I'm not sure. >> We've had those conversations. >> Yeah, for most elementary children, we do not send laptops home unless the family requests or there's some special need that and sometimes families will want them so their students can continue with some of the intervention programming or tutoring programs that we use in the classroom. But typically, we don't send laptops home. We keep them in the classroom for the littleer guys. >> I think it's always beneficial to to go over it a number of times. I was fortunate to get to do it with Mr. Bentley and then also with um director uh Roi. So this is actually my third time and and you know because it hasn't all been entirely committed
040to memory. So I appreciate um really having a robust understanding. Does anyone have any other questions? >> I guess going to your last slide. Um, so it sounds like we're spending down by let's see about 8 million. >> 8.2 million. >> Um, does that make you nervous? Um, what is a nice number for you for available to spend? I think we have a very healthy fund balance and I think that what we're planning to spend into fund balance for next year is very reasonable. Where I would get concerned is in three years if we're still spending into fund balance for ongoing expenses, that's a problem. And so >> that's when we would have to have a more serious conversation about, okay, what are we not going to do so that we're not spending that fund
041balance? And we were able to grow our fund balance as really as a result of of less spending during COVID and then the COVID relief dollars and we intentionally grew our fund balance because we knew we wanted to make some land purchases. The land in Evans, there's a couple of pieces of land right now we're looking at uh that we would we would hope to purchase for future sites. And so it's important to have a fund balance. This is a very very healthy reserve actually. Um you can you can see where the CO dollars came in and you see the increase. We also saw some increase in oil and gas production during that time. So we collected more on mill levy override dollars with oil and gas production and personal property or commercial property. But
042we and we also collected more on our own mineral rights. And now we are seeing some decline in the oil and gas production. So, we are seeing some decline in being able to have those dollars, you know, feed our fund balance, but this is a healthy fund balance. And like Miss Sponsor said, I too would be concerned if we're looking at multiple years of 89 million of of spending in your reserves. It's, you know, we we that would be concerning >> and I think it's important to as we look towards perhaps a future bond issue. Um, having this kind of fund balance was very very helpful in our last bond issue. It allowed us to have a much better credit rating and so we were able to issue our bonds I think a lot easier
043than some other districts. >> I had one other question. Um, so we have we're predicting 79 fewer students and and possibly that continuing to to be a trend with a a decrease in birth rates across the country and including Colorado. Um, I'm curious, have you met with the demographer? >> We have not. Okay. >> No, we have not. It looks pretty stable though for us. When we get 10 years out, we look pretty flat. So, we're not seeing a a significant decline, I don't think, over the next 10 years, the the most recent data he has sent us. But, uh, we have data from him and now we need to meet with him to really understand what he's looking at cuz I I know that those of you who work in in healthcare are telling
044me that we have lots of babies being born. So, is he accounting for them? >> Where is it? Where's >> the hospital? >> I'm sure he is. I I would guess he's looking at births in county. >> Yeah. Anything else? Well, I'll just echo what Director or Director Edmond said that we just so appreciate you making it easy for us to understand, for the um public to understand. Um, congratulations on our continued clean audits and um we will be voting on this in our business meeting. >> I'd like to give a shout out to Megan's team, the finance team, because to uh this was a a rough budget year. We did not know what what was happening with the state dollars and we received runs and they were incorrect runs on what what we would
045be getting from state funding and then they found this last minute piece in the new funding formula that would have meant you know two to seven million for districts without districts knowing that was coming because that wasn't in the run from January. And so then she's shuffling again and and working to to build a budget and and balance a budget. And so, uh, you don't do that kind of work without a strong team behind you, right, Megan? And so, I want to give a a shout out to her finance team as well and to the support that they provide so that so that she can do this really high level important work for us. >> Thank you. >> Awesome. >> Thank you. >> All right. Moving on. We will have a discussion on our proposed
046resolution. Just talking dollars, dollars, dollars, dollars, dollars. See, Mr. Fall is attorney Fall is going to join us. >> What's the Mickey Mouse about? >> For West. >> Oh, >> I think this will be Mr. Fall's last board meeting as in-house counsel for district 6. He may be back uh with us. I would expect at some point as as we contract with Kathlan and Ernst and that is who he is leaving us to go work for. And so we may see him back in our boardroom or in executive session or in a training at some time, but this will be his last official act as attorney for district 6 in a board meeting. >> I think don't we still have him through June? >> That's why I said in a board meeting. >> Thank you,
047Dr. Pelch, President Mash, members of the board. Uh my name is Nate Fall. I'm legal counsel for the school district. Um as Dr. shared this is likely my last presentation for you all as in house legal council uh for the board. Um and so I hope you've enjoyed it as much as I have. Um today we're so on the business agenda you have a resolution in front of you and that resolution as it's written is one to support two proposed ballot initiatives that are coming in front of voters in November. Um, so I just wanted to kind of give you kind of a highle summary of what they are and then give you the opportunity to ask questions and have a discussion about it. So, um, both initiative 195 and Senate Bill 26135 aim to
048increase the state's budget through revising Taber in a way. um but they really differ significantly in their approach and the how they uh how the funds will be allocated. So uh initiative 195 is a citizen initiate initiated measure that creates a new tax structure by replacing Colorado's flat income tax with a graduated progressive tax system. What you have in front of you I didn't create this is from great education Colorado which is essentially a factual summary of 195. If you go to the back page of it where on the top it says how initiative 195 works, this is kind of what I'm explaining. Um, and then just to jump over to Senate Bill 26135. I'll just call it 135. Um, that's a legislative measure that doesn't change tax rates. It doesn't actually change the tax
049structure. What it does is it changes how the state uses existing Taber revenue limits. um and which would allow the state to retain some of those TABER revenue uh limits and put those towards education. And they've earmarked approximately $200 million a year um for those Taber refunds to go directly to um schools. So um in terms of financial impact, initiative 195 is projected to raise approximately $2.7 billion annually in new tax revenue uh which would be completely exempt from Taber revenue limits. On the other hand, 135 would allow the state to retain between roughly 1.1 billion and 4.8 billion in the first year. And that of course would depend on how prior education funding is calculated as well as if there's actually any revenue available um or surplus. And then in terms of allocation, initiative
050195 strictly earmarks funds for K12 public education and that's up here, healthcare and earlyhood childhood education. and for K12 public education, more specifically for improving schools, uh increasing teacher pay, retention, uh as well as career technical education opportunities, expanding those opportunities. Uh and then 135 would direct a specific portion again around 200 million to education, but then there would be potentially some kind of leftover revenue that might go somewhere else, right? Um so, uh the other thing I want to mention is neither of these measures, I'll just call them measures even though they're not technically not measures yet. um or proposed measures. How about that? Um they don't conflict legally. So technically both could go in front of voters and both could be passed and they would operate differently and so there would be kind
051of additional sources of revenue coming forward. So um I think in my eyes and in in Miss Sponsor's eyes that that either initiative could be beneficial to public schools. Um, I think as the sponsor just pointed out, you know, there's there's always concerns with future outlooks with finances and, um, just knowing that we have something like 195 or 135 coming that could help produce additional revenue is inherently a good thing. So, um, that's just kind of what those are. Um, I did have some notes about kind of arguments in favor or in opposition to 195, but I think for now I'll just leave it at that and then if you have any questions, maybe we can try answering them for you. Um, and then if you turn back to the front page of the Great
052Education Colorado, this is kind of more the data. This is district specific. They came out with data for all school systems in the state. And this is where they came. If 195 were to pass, we would be projected to receive $19 million in 2027. 19 million. I mean that's that's significant, right? So >> um >> so they did a additional like projected additional revenue. Has 135 done that like is there a dollar amount behind that one >> for like district 6 specifically? So, I'm using the fiscal note that was attached to the bill. And so, they do have a projection. Um, for 26 27, our district would be looking at believe it's two. >> This is why I asked Miss Sponsor to stay at the table. >> 2.8 million the first year and then after
053that, it's really dependent on if there are Taber refunds or not. Um, >> was that the same with the 2.8? Like the 2.8 if there's tab or like the 2.8 is a promise and then Okay. So, even that one is dependent on whether or not there's even funds. Okay. >> Yes. >> That's for 135. >> 135. >> But 195 is a guaranteed 19 millionish is guaranteed. >> Mhm. Mhm. >> I think uh the some of the opposition from superintendents to 135 early on was that th those kind of dollars are not going to solve K12 problems. I mean they're helpful, right? I mean they would take care of the cost of our almost the cost of insurance increase that we're putting over into our insurance fund. But um then you know but but we will
054take them if this measure passes. We will we will rejoice in having those dollars, but but we want to be really clear about messaging, I think, because it there there could be a mis here that this is going to fix K12 um the cut the ropes measure 135. Um and that's kind of where we landed with the the marijuana dollars, the tax dollars on marijuana, thinking that that was going to solve the problem. And there just isn't the revenue has not been generated from the taxing on marijuana that was once hoped. And we're hopeful that that the legislature the legislators had the courage to to pass this and put something on the ballot at the same time. We're we're pleased about that. >> And they did a lot of work, I think, to improve the
055bill over time. >> A lot and a lot of work to get there. >> Yeah, I think there was a lot of negotiation happening and I think it ended up in pretty good place in terms of supporting K12. Well, and this goes uh hearkens back actually to the report you just gave, but remind me how much in reserves are we looking to spend? Is it was 8.2 you said? >> So 8.2 million we're taking from reserves the possibility of almost recuperating that in a way >> and this is every year. That's I guess that's another important thing is that this isn't a one-time thing. This is a every year potential >> for 195 >> 195 for 195 >> 195 is guaranteed and the amount is not fully guaranteed right >> um but it is guaranteed
056that there will be dollars 135 is not guaranteed depending on you know if there's dollars for table refunds but it makes you know I don't want to sound ungrateful that it's on the ballot the 135 I mean it it it will be helpful to have those additional dollars in the K12 system. Yeah. >> And and to slow the drain on other, you know, other entities that rely on the state budget for funding, >> as Dr. Brenda pointed out, like we're operating lean. >> This gives us a little bit more room to take a a deeper breath. Mhm. >> And the the COVID do dollars that we had over five years about $20 million allowed us to meet a lot of our goals of um our strategic plan, lower our class sizes. >> Um we know
057that our students and staff um have additional mental health needs and we were able to to add social workers and counselors and things like that. Some of those were only funded with those dollars and we haven't been able to retain all those positions. So, I think that's really where some of those vital dollars would go as well. And then, um, those of you who are new to the board, you may have heard us talk about the budget stabil stabilization factor that from 2010 to 2023, the state balanced their budget, unfortunately, on the backs of education and took away a certain percentage from each district. But that's a total of $250 million that we are short or were shorted. So, you know, we won't ever be able to like feel like we made up for that,
058but um yeah, this this these dollars um would be yeah, absolutely valuable to our students and staff. in Weld County. Um the greater ed Colorado looked at u median income in all the different counties um of Colorado. And so according to the median income in Weld County, if this passes, 99.2% of Weld County residents would actually pay less in income tax. So this would only be taxing the highest earners, 0.8% of Weld County, a little bit more. Um, so not 13% which is what California has an income tax nowhere near that. I think the highest bracket was like 8% if you earn over $2 million. Um, so 0.8% of old county would pay a little bit more. 99.2% would pay either the same or less and we get $19 million for Gley Evans District 6
059as a conservative estimate. So that the est that 19 million where is that coming from? So, so the 2.7 that's in the ballot language, the 2.7 billion that's in the ballot language is actually um like an overestimate. And so they were asked to uh come up with the maximum possible revenue to put on the ballot language. And so they actually the 2.7 billion is 34.4% higher than the actual estimated revenue. So the estimated revenue is less than 2.7. Um, but they're thinking if if let's say there's two billion that come in um with this change from flat rate tax to graduated income tax. Um, which historically I I wish Doran was here. He he likes history. But when Colorado was created as a state, we had a graduated income tax system and it wasn't until
0601987 that it was changed to flat rate and then in 1992 when Taber passed, it was put into the constitution as a flat rate. Um, so actually the signature gathering is harder for the for 195 because it's a constitutional amendment. um saying we're going to go from flat rate back to graduated income tax, which is where we used to be. Um but I digress. Um yes, so if we get two billion and we say that K through 12 gets 35% of the pie of the 2 billion, that's about 700 million. And they did the math, you know, with uh pupil count and all that for all the school districts. And that's how they came up with that 19 million. If all we get is 2 billion, although there's an estimate that it could be more
061than 2 billion. um and and K through 12 gets 35% of the pie. Um it would be 19 million for district 6 and and so they're calling that a conservative estimate. So it could technically be more. Um the questions I had for some of the organizers were and this is because of my healthcare hat that I know Medicaid is also underfunded which is another reason um this is is being proposed is because it would also help with Medicaid funding. So I was like how do we know Medicaid isn't going to take all the dollars? Right? which I get it. Medicaid also needs it. U my heart is in education and so I'm a little torn torn there. Um some things I like about the language is that the the 19 million would supplement not supplant
062existing invest in investments in pro in K- through2 programs. So meaning it's not like okay we're going to instead of giving it to you from our the state budget how we always have we're going to just take it out of this new thing. No, it's it's 199 million extra, not not supplanting, but supplementing. And then the other thing I really liked was it requires an annual audit and public reporting to demonstrate that the dollars are spent as the measure requires. And so I've been describing it as four buckets is where the money goes. We don't know how they're split, but it's K through 12, it's preschool, child care, and healthcare. So those are the four buckets that that get to split the two billion. And 99.2% 2% of us actually will pay less in taxes
063if this passes. So, I think that's a pretty creative bell's policy or whatever they're called. Solution, >> the bell policy. >> Policy. Yeah. >> What questions do you all have or comments? >> Well, I should probably just go ahead and speak up. I I um I am not planning on voting yay on this um this. I don't think it'll make a difference in terms of the total vote, but I um I take exception to the legislation in that it it targets a um a de a a demographic of our community and um I feel like that public education be should be a shared thing and it's it targets the group of people in our community that we look to to support um a lot of the things that United Way dream team, all those kinds
064of things. Those are the same people we target. And I just I feel like we're shooting ourselves in the foot uh looking to graduate um the tax on those those higher earners who are the people that are the entrepreneurs, the job providers, um the um business leaders. And I, you know, my concern is is that we get people angry towards public education and resentful because we keep looking to them. You know, well, they've got money. We they can, you know, they can afford it. They can afford it. And um we want them on our side when when it comes to bond issues and that type of thing. So, um I I you know, the money is super enticing. you know, you look at that much money and you go, "Yeah, how we can figure out
065to get it." But I think that the plan to get it in that way is a poor plan. So that's why um I will be voting nay. >> And I would vote I would have vote avoid voting or or >> saying how you're going to vote right now. Yeah. But it's okay you did. >> It's okay, >> Director Roi. But let's not the rest of us. >> Yeah. >> I I think I you're okay. I mean, just I >> as long as we don't go around the table, >> let's talk about supporting or opposing it. I just wouldn't say what your vote is right now. >> I will point out we're in the minority of states of the 50 states in the United States that still has flat that has flat rate income tax. Most
066states are graduated and federal income tax is graduated. So, >> I'm pretty we're sure we're in >> the minority. There's 27 states that are are graduated. I I don't know enough about it to answer. >> Just a perspective I would offer is that I think that this is a question of equity versus equal. So right now it is equal that everyone pays 4.4%. So we're all paying the same percentage of our income. But um that is suggesting that a dollar is a dollar for the family that makes $30,000 and the family who makes $3 million. So for example, my mortgage is going up by $100. I can handle that. That's not going to set me back. I have a family member whose rent is going up by $100 and that is um 25% of her
067rent. She's on subsidized housing. And even with that, it's going up um a significant amount. So So $100 being equal, it's $100. Yes. But the spending power and the value of that dollar for 99.2% of our voters, um I think it's a I think it's a different conversation. It's not about equal. It's about equity and how um those dollars go further with a different family. So that's my perspective on it's not meant to be um a villainizing or a it's it's actually meant to be more equitable all things considered. And in the in the ballot language there's like a lot of sub subtext to read. Um, one of the things that stood out to me of of the subtext, um, it's called the legislative declaration and it's section one and it's the bullet point C.
068And it's a really interesting point. I'll just read it verbatim. So it says in Colorado combining state income, sales, and property taxes. So, state income, sales, and property taxes. The wealthiest 1% of Coloradoatans, those who make over 850,000 per year, pay only 7% of their income in state and local taxes every year. Whereas the 60% of Coloradoatans making between 25,000 and 150,000 per year pay between 9 to 10%. So, the system that currently exists does already favor the wealthy. So, it is an unequal system. If you combine state income and property taxes, >> um, as I told Brenda earlier, there there's reasons that those top earners pay less money and it's because they're incentivized to reinvest their money back into the system. So there's also that's a skewed data point because the also the top
06910% of taxpayers are already paying approximately 50% of all tax revenue. So, depends on how you you look through that glass of of of fair or not fair because to to get your taxes down, there's only one way to do that and it's through legal deductions that the same Congress people and the same senators have already uh made legal to to utilize. So, it's not uh it's not really a fair assessment in my point of view. I also um have a hard time sitting here and watching the state as a whole make economic decisions around certain industries that would greatly benefit the u you know the property tax income via oil and gas investments or you know even even a data center. The personal property tax on a data center is ginormous. You're you're talking
070billions of dollars in personal property taxes per data center. Um, so to to watch them, you know, make decisions uh in that regard, but then to ask uh our highest income earners to to continue to pay more taxes is is hard to swallow. Um, it's probably not the straw that'll break the camel's back, per se, but it is a straw on the camel's back. And and I'm just not a fan of trickle up epic economics. I think it's it's trickle down, you know. Um, that's that's the only way it really works. There's got to be enough money generated to pay for all these programs and such and and you you you don't get that by taking and taking and taking and taking. It's got to be generated through through commerce and and stuff like that.
071So, um I'm not I'm not a fan I I am a fan of District 6 getting more dollars and I will support what the board decides, but I'm not a fan of of taxing our highest income earners more. Just taking a quick perusal through the wonderful budget guide that you provide looking at school by school and save for Fred Chartis. All of our schools are above 50% free and reduced lunch rates. We live in a very low our families in our schools are low income. I mean average household income is 70 to 75,000 a year. I mean you think about rent and cost of everything else. So, I'm viewing this also from the perspective of how can I help my neighbor who can't even make it to the end of the month with their paycheck?
072And if I can get them another $210, it seems like another worthy opportunity for our neighbors. Um, I know that this doesn't impact me because working in nonprofit, I am also closer in those ranges. Um, but I've got to think I I've I've always tried to do the best I can to think what's best for my neighbor. Um, if that means uh making adjustments that make things uncomfortable for other people. Um, I I know that's a tough thing to say, but I guess ultimately what I'm saying is boiling boiling it down is to see how many of our schools, our students every day come there and they they might have not had breakfast not because there wasn't food in the home, but because that that they just were running late, but there wasn't food in
073the home. Um, and so our our students and our families are always continuing to fight to just provide what's best for their families. So, if we can provide another$ 199 million for our school district, for our teachers, for our families, I I think it's a worthwhile venture um to do that. And so, I I do love the opportunity that we can look at things that help provide this to make Megan's job a little bit easier, but also ultimately to make our teachers and our administrators jobs a little bit easier because they love our students. And we all love our students. I mean, that's the that's the tough thing, the tricky thing about this is it's so frustrating that we're in this situation. that I say this all the time when I give tours at the
074food bank that a hungry child should not sit right with anybody no matter how what side of the political aisle you vote on and it doesn't sit right with us and a child that is underserved in public education shouldn't sit right with anybody and it certainly doesn't sit right with us how we go about that um I know differs I as far as we look outside the classroom but in the classroom I am also grateful that we have a board that does want to have what's best for our our teachers and our students. And so, um, that's just why I think initiatives like this are important to talk through and think through. And, um, I respect everybody, regardless of how you vote tonight, that I I don't think this reflects anything on how much you
075love our students or how much you love our community. This is just the messiness that unfortunately public education continuously ends up in the crosshairs for. um underfunded um underappreciated but amazingly overly relied upon for for our families like teach our students, take care of our students, watch them for 13 years every day. Um but also doing it on a very tight budget. It's just it's it's a hard thing to have to balance with. So thank you Nate for providing also the insights for this and knowing um some of the ins and outs and where you don't. Megan helps fill in that as well. Um, so yeah, >> I think for me, um, we live in such a great community. Our community gives so much and so much to so many spaces that for me, my
076support for 195 is positive because I think about people already giving. And if you think about the 08% people who might be asked to give just a little more for a duration of time that they give already and so it's giving in a different perspective. that's giving in a different avenue that will provide so much more money for the things that they believe in like our education. And so for me, when I look at this, so while it does impact our 0.08% of population um maybe a little differently than they would normally have it, they give anyway, right? So when you think about I'm giving in the way of of through the 195 initiative and maybe I might not give in the way that I used to give, but it looks differently. And so for
077me, I feel that when we talk about the 195 and the amount of money that we can give for the duration of time for education, so we're talking about education and our our students, our future, our teachers. Um that's why we're here. That's why we sit at this table. And so when we really think about it in that perspective, it's, you know, can can we give a little more? Um and I think we can. And so I certainly am um going in favor of initiative 195. I just think on principle there's a big difference between someone having the ability to give and giving freely and requiring them to give. And that's kind of where I draw the line. It's it's it's not so much can they give, you know, it's it's it's more of a
078a goodwill, you know, between everything and them having the ability to give and them choosing to give is is just a whole different story on principle than taxing them and forcing them to give. >> Well, it will be a vote of the people. Yeah. Yeah. That's I guess that's a good reminder. This is just a resolution on it and the real action happens in November should this make it onto the ballot >> and volunteer so that it does. >> Are there any other like numbers or legality questions? >> Does this take when does this go into effect? If it passes, >> it would be on the November ballot. No, I mean I mean if it passes in November, >> when does that does that strike immediately? January 2027? >> I believe it would be immediate.
079Yeah, it would be for the 202728 fiscal year. >> Mhm. >> Okay. >> Yeah. This says that >> if folks fired the taxes in 2027, that additional amount would be accepted. >> Y >> says July 1st of 2027. So about a year from now is when we would have >> our next budget we would have. >> You're saying it's right in front of me. >> It's right. It's the the snap. >> Oh, look at that. It's right there in front of me. >> And is this a is there a an end date on this? >> So, this becomes constitutional >> constitutional amendment. So, it's it's an ongoing um Okay. >> I think 135 does sunset, right? That >> Yeah, I thought I couldn't remember which one was it. Was a 10-year. I have not fact
080checked this, but my understanding is that the Colorado Constitution is one of the most heavily amended constitutions in the union. >> Interesting. >> So, I had a a neighbor who was like, I never vote for constitutional amendments cuz they're impossible to undo and they're like, >> I mean, this is this is Yeah. going to be there forever. >> This is an amendment to an amendment because Taber was the amendment. And then and this does not undo Taber. It just undoes the flat rate income tax part of Taber. All right. >> They're calling it a repeal, not an amendment. >> Oh, >> okay. Right. So, we're going back to the original Constitution of >> Um, so we've had a robust discussion. Um, but when we go to vote on this, you will have an opportunity to
081let the the folks watching that meeting >> I didn't wait, but >> Oh, well, I mean, I think we >> you can repeat generally. >> Yeah. Say it again. Yeah. I mean I think it is um important for yeah the public to know where why we're choosing to vote the way that we are. So when I say is there any discussion that is the time for the discussion >> and and it's probably important to note that far more people watch the business meeting than watch the work session. Yeah. So >> you know if you you want folks to understand your comments you it's probably more important to put them in that that meeting than this one. >> Yeah. >> All right. Thank you both for for the budget information and for the measures proposed measure
082information. >> Thank you for all the years. >> Yes. Thank you, Nate. >> Got us through co >> book fans. >> It's been piece of cake for you. >> Walk in the park. First job out >> so well. He left us. >> He's going to be back every second and fourth Monday. Will you be at Casby? >> Maybe. I might be standing in a booth. >> No, she said they're not going. Oh, Casby. Yes, not Case. >> They're not going to case. We'll go. We'll go visit your booth. >> Make sure you have some good swag. >> Okay. Well, let's debrief the meeting. And I believe we'll start with you, Director Roi, because you were last on the front end. Um it's a good discussion and a good meeting and it's just interesting to hear
083everybody's perspectives. So I appreciate that. >> Um I just want to thank Nate um for all the information you provide and all the guidance you've given us and you certainly will be missed. And then Megan and team, um gosh, I I thank you so much for giving us the guidance on the budget and um putting all those terms and everything in layman's terms so I can really absorb what it is that we're talking about and um where we're headed. So I appreciate that, too. >> Campus Spitzy. Um, also thank you Nate for the years um and for keeping us all honest and legal. Um, I remember our first meeting was about social media 101, how not to put everything out there in the public. Um, and and Megan, I I know I've told I've told
084you this multiple years, but I also get to review the budget for UNC. And I I love Dale Pratt, our CFO there, but it and his team, but it is nowhere near as clear and beautiful and pretty and just transparent. Um I I wish everyone had the motivation to go and look at your document. Um but I am highly appreciative um of what an outstanding job you guys do. >> Director Bentley, >> uh Ditto, appreciate you guys and good luck, Nate, in your in your next job. Appreciate everything you've done. It's been been a pleasure getting to know you and working with you and obviously thanks to Megan and their team. They they always knock it out of the park with the budget presentation. Uh I know that that's a snippet of of what the
085actual budget entails, you know, to get that doc those documents produced, but it is a very good tool for us and and the community in whole. So, thank you guys. And I will also thank you uh Megan and your team for um for all the work you do especially on the difficult years. And Mr. Fall, we will miss you. You've kept us out of court and we understand >> got to the end of the month. >> Um yeah, just just educated us so much and um supported us and we thank you. Best wishes. >> All right, this meeting is adjourned. We'll see you back on Wednesday. >> 6. >> Did I forget? Wa. little heat.