[00:00:02]
I'D LIKE TO CALL THIS SPECIAL MEETING WORK SESSION ON THE BUDGET PROCESS AND IMPACTS.
[1. Call to Order]
JULY 25TH, 2022 AT 5:00 TO ORDER, OUR PRESENTERS ON THE BUDGET WILL BE MICHELLE SCOTT CHIEF FINANCIAL[2. Work Session]
OFFICER THANK YOU.THANK YOU. BOARD. FIRST OF ALL, BEFORE WE GET STARTED, I'D LIKE TO INTRODUCE CINDY CLEMS AS SHE IS A PHENOMENAL ADDITION TO THE BUSINESS SERVICES DEPARTMENT.
SHE JOINED US NOT TOO LONG AFTER I GOT THERE.
AND SHE IS AN INTEGRAL PART OF THE BUDGETING PROCESS.
ALSO, I WANTED TO AND BY THE WAY, CINDY'S BEEN WITH THE DISTRICT FOR 17 YEARS.
AND SO SHE BROUGHT WITH HER QUITE A BACKGROUND OF KNOWING BUDGETS AND ALL THE DIFFERENT INNER WORKINGS OF TNL BECAUSE I NEEDED HELP WITH IT.
SO ANOTHER THING I WANTED TO MENTION IS THAT SHE ALSO JUST RECENTLY COMPLETED HER ACCOUNTING CERTIFICATION WITH WASBO TAUGHT BY OUR LOVELY AND WONDERFUL.
MS. MEGAN HAYDEN AND SO WE WERE VERY PLEASED THAT SHE PASSED ALL OF HER EXAMS, ALL THREE OF THEM RIGHT OUT OF THE GATE CONSECUTIVELY.
AND SO THAT WAS SO JOIN ME IN CONGRATULATING CINDY ON THAT.
NEXT, I WANT TO JUST TALK ABOUT THE BUDGET PROCESS, JUST KIND OF.
I KNOW THAT YOU'VE HAD THIS YOU KNOW, WE'VE TALKED ABOUT THIS, BUT I JUST WANTED TO JUST IN CASE THERE'S ANY COMMUNITY LISTENING, JUST TO KIND OF GIVE AN IDEA OF HIGHLIGHTS OF THE BUDGETING PROCESS.
SO, YOU KNOW, WE STARTED IN JANUARY LOOKING AT STAFFING.
WE'RE LOOKING AT ENROLLMENT, MOSTLY ENROLLMENT AT THAT TIME.
BUT WE'RE STARTING TO LOOK AT WHERE ARE WE GOING TO BE PROJECTING ENROLLMENT FOR THE NEXT YEAR.
SO WE'RE IN THE JANUARY, FEBRUARY.
AND THEN BASED ON THE HOW WE ROLL UP STUDENTS AND WE PROJECT INCOMING STUDENTS, WE LOOK AT THEN STAFFING NEEDS AND HOW WHERE THOSE STAFFING NEEDS ARE.
AND WE WORK WITH THE HR DEPARTMENT VERY CLOSELY AND MS. WHITTEN ON STAFFING AND THEN WE FOLLOW AFTER THAT'S DONE, AND WE'RE ALWAYS LOOKING AT STOPPING THROUGHOUT THE WHOLE PROCESS. BUT THEN WE'RE ALSO LOOKING AT OUR DEPARTMENT BUDGETS, OUR ASB BUDGETS, OUR CAPITAL PROJECTS FUND BUDGETS.
AND SO, YEAH, AND SO I'M HAPPY TO PRESENT THIS WORK SESSION TONIGHT TO GIVE YOU A BUDGET UPDATE AND LET YOU KNOW WHERE WE PUT ALL THE PIECES OF THE PUZZLE TOGETHER AND WHERE WE'RE AT AND GIVE YOU SOME HIGHLIGHTS.
WE WILL NEED TO ADOPT THE BUDGET BY AUGUST 31ST, SO WE WILL BE COMING BACK WITH A BUDGET RESOLUTION AND A PUBLIC BUDGET HEARING PRIOR TO THAT.
SO WHAT A DIFFERENCE A YEAR MAKES.
I REMEMBER BEING HERE IN JULY AND THE LEVY HAD NOT BEEN APPROVED IN FEBRUARY.
THE PANDEMIC WAS STILL CREATING HAVOC.
WE FOUND OUT THAT MASK WERE GOING TO BE MANDATED AND WE WERE STILL TRYING TO.
WE WERE PLANNING FOR A FULL RETURN OF STUDENTS AND ALL OF OUR EDUCATIONAL PROGRAMS. IT WAS BUSY.
AND THEN IN NOVEMBER, OUR COMMUNITY APPROVED OUR ENRICHMENT LEVY AND.
THAT WAS REALLY THAT WAS WONDERFUL TO HAVE THAT HAPPEN.
SO IN JANUARY WE DID A BUDGET EXTENSION.
AND SO IN THE BUDGET EXTENSION, WHEN YOU DO ONE OF THOSE OSPI PROVIDES OUR BUDGET DOCUMENTS, WE EXPORT INFORMATION INTO THEIR SYSTEMS FROM OUR SYSTEM FROM SKYWARD, AND THEN FROM THAT THERE ARE THAT'S HOW WE CREATE OUR ACTUAL OFFICIAL BUDGET DOCUMENTS WHICH ARE CALLED FOR THE BUDGET.
[00:05:03]
IT'S AN F195.SO BUT WHEN YOU DO A BUDGET EXTENSION, IT DOESN'T THEY HAVE NOT CONNECTED THE TWO TOGETHER.
SO WHEN YOU'RE LOOKING AT THE OFFICIAL BUDGET DOCUMENT, THE 2122 INFORMATION IS GOING TO BE PRIOR TO THE LEVY.
SO WHAT WE'VE DONE IS WE'VE ACTUALLY CREATED THIS HANDOUT AFTER THE BUDGET EXTENSION SO THAT YOU CAN COMPARE MORE APPLES TO APPLES, I GUESS, YOU KNOW, BECAUSE OF WHAT CHANGED.
BUT THE FIRST THING I, I PUT IN THE BUDGET HANDOUT FOR THE EXECUTIVE SUMMARY WAS IS THAT WHEN YOU'RE LOOKING AT THOSE DOCUMENTS, IT'S THE OSPI SYSTEM JUST DOESN'T HAVE THE SOFTWARE TO, TO CREATE THAT.
SO BUT WE HAVE OUR F200 POSTED SO ONLINE AT OUR WEBSITE AND SO UNDER THE BUDGETING TAB. SO IT'S AVAILABLE IF ANYBODY HAS ANY QUESTIONS ON THAT, IF THEY'RE SAYING, WAIT A MINUTE, THIS DOESN'T THIS DOESN'T MATCH FOR SOME REASON.
SO THE FIRST PART IS I DO HAVE AN EXECUTIVE SUMMARY AND THAT IN THIS BUDGET WE DO HAVE FOUR FUNDS. WE HAVE OUR GENERAL FUND, WHICH IS MADE UP OF TEACHING ACTIVITIES AND SUPPORT, BUILDING SUPPORT AND DISTRICT WIDE SUPPORT. NEXT, WE HAVE OUR AND WE'RE GOING TO GO INTO DETAIL ON ALL THESE FUNDS AND LOOK AT THEM.
BUT I JUST THIS IS JUST A HIGH LEVEL OVERVIEW.
AND THEN WE HAVE OUR ASSOCIATED STUDENT BODY FUND, ALSO KNOWN AS OUR ASB FUND FOR STUDENT LED CLUBS AND ACTIVITIES, AND OUR CAPITAL PROJECTS FUND FOR MAJOR REPAIRS, PURCHASES OR ACQUISITIONS OF FACILITIES SUCH AS CLASSROOM MODULATORS AND PROPERTY, AND THEN OUR DEBT SERVICE FUND.
AND THAT'S FOR BOND DEBT ISSUED FOR BUILDING NEW FACILITIES SUCH AS NEW SCHOOLS OR CAPITAL PROJECTS, INFRASTRUCTURE IMPROVEMENTS.
SO WHEN WE DID HAVE SOME CHALLENGES WITH THIS REVENUE, WITH THE REVENUE, NOT THAT WE HAVEN'T ALREADY ATTEMPTED TO OVERCOME SOME OF THOSE CHALLENGES, BUT WE DO OUR LOCAL EFFORT ASSISTANCE FUNDING THAT THE DISTRICT HAS RECEIVED OVER.
I THINK WE'VE ALWAYS RECEIVED IT.
IT'S BEEN PHASED OUT THROUGH THE FUNDING FORMULA FOR THE STATE.
AND IT'S I MEAN, IT WAS ACTUALLY AS PART OF THE MCCLEARY TRANSITION AND THE ENRICHMENT LEVIES, THEY SCHEDULED THAT KIND OF IT WOULD EVENTUALLY PHASE OUT DOWN THE ROAD.
SO DEPENDING ON, YOUR DISTRICT, SO WE WILL NOT BE ELIGIBLE FOR THE 20, 23 YEAR FOR LOCAL EFFORT ASSISTANCE OR LEA, AND THAT'S ABOUT $1.3 MILLION THAT WE RECEIVED FOR 22. ALSO, WE ARE STILL HAVE NOT REBOUND IN ENROLLMENT FROM THE PRE PANDEMIC, SO WE'RE STILL LOOKING AT A DECLINE OF STUDENTS.
NOW WE HAVE OFFSET SOME OF THIS ALREADY.
WE'VE ADDRESSED SOME OF THIS IN.
BUT I THINK IT'S IMPORTANT TO POINT OUT THAT WE STILL HAVE A REVENUE SHORTFALL THAT WE HAVEN'T CAUGHT UP IN FROM THE PRE-PANDEMIC CLASSROOM.
TEACHING STAFF HAS BEEN ADJUSTED, OF COURSE, FOR THE LOSS OF STUDENTS.
AND THEN ALSO WHAT THIS WILL DO, THOUGH, IS BECAUSE WE STILL HAVE QUITE A FEW STAFF, IS THAT WE ARE GOING TO NEED TO USE FUND BALANCE RESERVES TO AND WE DO HAVE SOME ENROLLMENT STABILIZATION.
WE'LL GO INTO THAT SO THAT SO WE'VE BEEN ABLE TO ADDRESS THOSE SHORTFALLS SOME HIGHLIGHTED PROGRAM INFORMATION IS WE DO HAVE SOME THE STATE DID PROVIDE AN INCREASE IN SUPPORT FOR PHYSICAL, SOCIAL AND EMOTIONAL LEARNING OR EDUCATION.
SO THE DISTRICT RECEIVED ALMOST EQUIVALENT OF TEN FTE FOR INCREASE IN
[00:10:07]
NURSE COUNSELORS, SOCIAL WORKER AND PSYCHOLOGISTS.AND I WAS LOOKING AT THAT DOCUMENT TODAY.
IT'S A 0.5 FTE FOR PSYCHOLOGISTS THAT WE RECEIVED IN THIS FIRST ONE.
SO IT'S A THREE YEAR PHASE IN.
SO THEY WILL ADD ABOUT THE SAME EXACT FTE IF NOTHING WAS TO CHANGE.
MIDDLE SCHOOL SPORTS FOR THE FULL SCHOOL YEAR.
CURRICULUM ADOPTIONS ARE INCLUDED AND WE HAVE ADDITIONAL FUNDING FOR FACILITY CAPITAL IMPROVEMENTS AND OUR CAN BUILDING LEASE SAVINGS.
SO WITH THE MOVING OF THE CAM, WE NO LONGER HAD TO BUDGET THAT LEASE PAYMENTS, SO THAT CAN GO BACK INTO PROGRAMS. AND THEN WE HAVE CONTINUED IMPLEMENTATION OF ACCOUNTING CHANGES AND I'LL TALK ABOUT THAT BECAUSE THAT AFFECTS THE FINANCIAL STATEMENTS AND THEN ALSO THE USE OF ESSER FUNDING TO RESPOND TO STUDENT LEARNING AND RECOVERY AND SUPPORT.
SO THOSE ARE JUST SOME HIGHLIGHTS.
SO THE FIRST THING I'LL START WITH IS THE GENERAL FUND.
UM AND FOR GENERAL FUND ENROLLMENT IS THE MAIN DRIVER OF MOST ALL OF THE FUNDING OF GENERAL FUND, INCLUDING OUR BILINGUAL OUR ALE PROGRAM CTE PROGRAMS. SO ENROLLMENT IS VERY IMPORTANT TO THE FUNDING THAT THE DISTRICT RECEIVES.
SO WITH ENROLLMENT, THE WAY THAT WE HAVE PROJECTED IT IS WE HAVE BASICALLY TAKEN A VERY CONSERVATIVE APPROACH AND JUST ROLLED UP THE ENROLLMENT.
AND IT'S JUST TOO DIFFICULT TO CONSIDER.
IS THERE GOING TO BE GROWTH? I MEAN, TO TRY TO PROJECT THAT IT'S JUST NOT IT'S EASIER TO BRING STAFF ON IF WE NEED TO THAN IT IS TO BE OVERSTAFFED AT THE BEGINNING OF THE YEAR.
SO ENROLLMENT BEING PROJECTED CONSERVATIVELY, I THINK IS YOU KNOW, IS A GOOD PLAN.
WE'VE DONE CONSERVATIVE ENROLLMENT PROJECTIONS AND THEN WE ACTUALLY COME IN SHORT. SO FROM BUDGET TO BUDGET, THIS IS THE DECLINE OF 36 FTE AND THAT'S THE FIRST FULL TIME ENROLLMENT.
AND WE HAVE STUDENTS THAT ARE HAVE PARTIAL FTES AND THEN 1.0 FTES.
THE ENROLLMENT DOES FLUCTUATE AS WE MOVE GRADE TO GRADE AND WE LOOK AT INCOMING AND OUTGOING, WE DO HAVE AN ADDITIONAL WE'VE ADDED 72 STUDENTS FOR THE NEW INCLUSIVE TRANSITIONAL KINDERGARTEN PROGRAM.
SO THERE'S GOING TO BE FOUR OF THOSE ROOMS SET UP.
AND THEN IT'S IMPORTANT TO NOTE THAT RUNNING START ENROLLMENT IS ROLLED FORWARD, BUT FROM WHERE IT'S AT RIGHT NOW, BUT IT'S REALLY A PASS THROUGH TO THE COLLEGES.
SO. MICHELLE CAN I ASK A QUESTION? YEAH. SO THE 36 IS THAT FROM OUR ENDING ENROLLMENT OR FROM THE PREVIOUS YEAR'S BUDGET? PREVIOUS YEAR'S BUDGET, YEAH.
SO WE ACTUALLY HAVE A SLIGHT INCREASE FROM WHERE WE'RE AT RIGHT NOW BECAUSE WE ARE ADDING THE 72 INCLUSIVE KINDERGARTEN. SO WE'LL ACTUALLY BE UP A LITTLE BIT FROM WHERE WE'RE AT NOW.
IT'S NOT A LOT, BUT WE WILL BE UP A LITTLE BIT.
SO, UM, SO I JUST, I PUT A GRAPH HERE AND IT JUST SHOWS THE ENROLLMENT AND FOR THE TOTAL ENROLLMENT INCLUDING RUNNING START AND OUR ALE PROGRAM AND BASIC ED.
BUT THE NEXT TABLE IS REALLY MORE OF THE HAS ALL THE NUMBERS INVOLVED AND THE FIRST SECTION OF THE TABLE THE FIRST TOP HALF I SHOULD SAY IS BASED ON THAT'S MORE OF OUR OUR TRUE FUNDING FOR COMPREHENSIVE SCHOOLS AND FOR OUR ALTERNATIVE LEARNING SCHOOLS.
[00:15:01]
THE BOTTOM PART IS FOR THE RUNNING START AND DROPOUT RE-ENGAGEMENT IS KIND OF THE PASS THROUGH.SO REALLY WHERE WE'RE LOOKING AT IS ALTHOUGH WE DO HAVE AN FTE, A TOTAL DECREASE WITH ALL OF THESE NUMBERS OF 258, REALLY WHERE WE'RE FOCUSING ON IS THAT 36 BELOW BECAUSE OF THE PASS THROUGH OF THE RUNNING START.
SO WE DO DID FIND THAT OUR ALE STUDENTS THAT HAD ENROLLED IN THE 2021 SCHOOL YEAR LAST YEAR IN OUR 21 22 SCHOOL YEAR HAD RETURNED TO THE CLASSROOM.
SO IT WAS QUITE THE SHIFT FROM ALE.
SO IT KIND OF LOOKS A LITTLE BIT WONKY.
AND SO IT'S JUST A MOVEMENT BETWEEN THE TWO DIFFERENT PROGRAMS. IT'S IMPORTANT TO NOTE THAT ENROLLMENT FUNDING ALSO INCLUDES NON DISCRETIONARY EXPENDITURES SUCH AS UTILITIES AND INSURANCE, AND THESE COSTS HAVE INCREASED AND CONTINUE TO BE PART OF OUR BUDGET.
BUT WITH A DECREASE IN ENROLLMENT OF 1000 STUDENTS FROM A FEW YEARS AGO, IT'S REALLY WE'RE STILL EXPERIENCING AND PASSING THROUGH ALL THOSE COSTS THAT WE STILL HAVE TO HAVE.
SO IT'S JUST IMPORTANT TO NOTE.
I'M GOING TO START WITH THE REVENUE FUNDING UNLESS ANYONE HAS ANY QUESTIONS ON ENROLLMENT.
OKAY. SO NEXT IS REVENUE FUNDING.
SO 75% OF OUR REVENUE FUNDING COMES FROM THE STATE.
THERE'S A STATE GENERAL PURPOSE AND WHICH INCLUDES ENROLLMENT AND THE GENERAL FUNDING. AND THEN THERE'S ALSO THE WHICH STATE GENERAL PURPOSE APPORTIONMENT.
SO YOU HAVE YOUR BASIC EDUCATION, CTE ALE SPECIAL EDUCATION.
THEN YOU ALSO HAVE YOUR STATE SPECIAL PURPOSE, WHICH INCLUDES THE SPECIAL PURPOSE ITEMS LIKE SPECIAL EDUCATION, OUR LAB PROGRAM, LEARNING ASSISTANCE PROGRAM, BILINGUAL, HIGHLY CAPABLE PROGRAM AND TRANSPORTATION.
NEXT, WE'LL GO TO OUR FEDERAL SPECIAL PURPOSE, WHICH IS ABOUT 7.9% OF OUR BUDGET.
AND THAT IS GOING TO INCLUDE FEDERAL IT'S GOING TO INCLUDE SPECIAL EDUCATION.
IT'S GOING TO INCLUDE OUR FOOD SERVICE PROGRAM, FEDERALLY FUNDED USDA SCHOOL MEALS GRANTS, OUR TITLE PROGRAMS, OTHER FEDERAL GRANTS.
AND THEN ESSER IS A BIG GOING TO BE A BIG PORTION OF THAT FEDERAL SPECIAL PURPOSE.
THE NEXT IS OUR LOCAL AND NON TAX SUPPORT AND THAT IS DONATIONS, FEES, FINES, INTEREST, SCHOOL PAID MEALS AND COMMUNITY EDUCATION PROGRAMS. AND THEN OUR LOCAL TAXES IS GOING TO BE OUR ENRICHMENT LEVY FUNDING THAT'S COMING THROUGH.
AND THEN THAT MAKES UP OUR REVENUE SOURCES, AS YOU CAN SEE IN THE TABLE NEXT.
SO WE BUDGETED FOR WE HAVE AN INCREASE OF $4.6 MILLION FROM OUR BUDGET FROM 21 22.
AND THIS IS AFTER THE LEVY EXTENSION.
THERE IS A SLIGHT INCREASE OF 75128, BUT THEY DON'T CHANGE MUCH FROM 21, 22 TO 22, 23.
SO FOR THOSE, TOTAL IS $8.3 MILLION IN OUR FEDERAL SPECIAL PURPOSE WITH ESSER, WE DO. WE HAD BUDGETED QUITE A BIT OF ESSER WORK THIS YEAR AND THE 21 22 SCHOOL YEAR.
[00:20:01]
SO NEXT SCHOOL YEAR, WHILE WE CONTINUE TO USE OUR ESSER FUNDS, THE OUTLIE OF THOSE OF THOSE FUNDS FUNDING IS GOING TO BE REDUCED DOWN BUT THEY'LL STILL BE FUNDS FOR THE FOLLOWING SCHOOL YEAR THE 23 24 SCHOOL YEAR THAT WE'LL BE ABLE TO USE AS WELL.NEXT IS OUR LOCAL NON TAX SUPPORT AND IT'S VERY IMPORTANT TO REMEMBER THAT WE DO HAVE A PASS THROUGH IN SOME OF THESE CATEGORIES.
THE PASS THROUGH IS CREATES CAPACITY AND WE'LL TALK ABOUT THAT A LITTLE BIT MORE.
IT CREATES CAPACITY FOR RECEIVING DONATIONS AND SPENDING THEM.
IT CREATES CAPACITY FOR ENROLLMENT FLUCTUATIONS.
SO HAVING CAPACITY IN THE REVENUE AND EXPENDITURE SIDE, WHICH IS FUN, BALANCED, NEUTRAL, IS REALLY IMPORTANT TO PREVENT BUDGET EXTENSIONS BECAUSE OTHERWISE YOU ARE COMING BACK IN AND DOING A LOT OF WORK FOR THOSE. SO CREATING THOSE THAT CAPACITY IS ALL THE DISTRICTS DO IT FOR HAVING A LITTLE BIT OF ROOM JUST IN CASE WE DO HAVE AN INFLUX OF STUDENTS.
WE HAVE ALL OF THE CAPACITY READY TO GO TO HIRE THOSE TEACHERS AND BRING THEM IN.
SO THAT'S A GOOD THING TO HAVE.
SO THERE ARE A FEW THINGS THAT THE STATE HAS DONE.
THEY HAVE PROVIDED A INFLATIONARY INCREASE OF 5.5% FOR STATE FUNDED SALARIES.
THEY ALSO INCREASED OUR MSOC CATEGORIES.
NOW THAT THEY DID A LITTLE DIFFERENTLY, IT WASN'T STRAIGHT ACROSS THE BOARD.
5.5%. THEY ACTUALLY MOST OF THE CATEGORIES IN THE MSOC'S WERE 5.5. BUT OUR TECHNOLOGY GOT A NICE JUMP IN THE FUNDING FOR TECHNOLOGY.
AND I REALLY FEEL LIKE THAT'S A RESPONSE TO CYBERSECURITY AND ADDRESSING SYSTEMS, NOT THE INFRASTRUCTURE OF THE SYSTEMS. SO AND THEN ALL OF THE TECHNOLOGY NEEDS FOR, YOU KNOW, AS WE'VE TRANSITIONED TO HAVING MORE ELECTRONICS AND ONE TO ONE'S FOR DISTRICTS.
SO THAT WAS A REALLY NICE AND WE DID INVEST THAT MONEY INTO THE TECHNOLOGY DEPARTMENT THAT INCREASED SO BUT INCREASES IN MSOC SUCH AS UTILITIES OR EXCUSE ME, RISK INSURANCE OUR RISK INSURANCE DID HAVE A STRONG INCREASE IN IT.
AND THEN ALSO OUR STATEMENT OF VALUES HAS CHANGED, WHICH ALSO REQUIRES US TO COME CLOSER TO THE COST OF THE BUILDINGS FOR REPLACEMENT.
AS EVEN YOU KNOW, AS THE FACILITIES ARE AGING, THERE'S STILL THE REPLACEMENT COST.
SO WHILE WE DID RECEIVE IT, AS WE KNOW, INFLATION IS MUCH STRONGER THAN 5.5%.
SO WE ARE, YOU KNOW, AREN'T CHALLENGED BY THAT.
SO BUT THAT WAS THE STATE INCREASE.
UM, LET'S SEE IF THERE'S ANYTHING ELSE HERE.
I WANTED TO POINT OUT WE DID HAVE AN ENROLLMENT DECLINE IN SPECIAL EDUCATION.
AND SO THAT IS PART OF THE CHANGES AND OUR SPECIAL PURPOSE FUNDING.
AND WE ALREADY TALKED ABOUT ESSER AND THE WE DID MOVE.
IT'S IMPORTANT TO NOTE THAT THE SCHOOL FOOD PROGRAM IS CHANGING FOR NEXT YEAR.
AND WE HAVE RECEIVED SPECIAL WAIVERS FOR MEALS FOR ALL STUDENTS, FOR FREE STUDENT MEALS THIS LAST SCHOOL YEAR AND NEXT YEAR.
THAT WAIVER IS NO LONGER AVAILABLE TO SCHOOLS.
AND SO WE WILL BE GOING TO A TRADITIONAL NATIONAL SCHOOL LUNCH PROGRAM NEXT YEAR.
AND SO BUT THE GOOD NEWS IS, IS A STATE ON AS FAR AS REDUCED STATUS, ALL MEALS WILL BE PAID.
BOTH BREAKFAST AND LUNCH ARE ALL COVERED FOR REDUCED STUDENT.
SO FREE AND REDUCED IS ALL NO CHARGE FOR MEALS.
[00:25:07]
SO THAT'S ONE OF THE CHANGES THAT HAPPEN.ANOTHER CHANGE IN REVENUE THAT HAPPENED WAS OTHER FINANCING SOURCES FOR CAPITAL LEASES.
SO THIS IS IN RESPONSE TO A REQUIREMENT THAT ALL THE SCHOOL DISTRICTS IN THE STATE OF WASHINGTON ARE REQUIRED TO IMPLEMENT IS AND THIS IS A GASB, WHICH IS THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD.
IT'S NUMBER 87 AND 96, AND IT REQUIRES US TO CAPITALIZE ALL LONG TERM COMMITMENTS FOR LEASES.
AND WHEN WE STARTED THIS YEAR NOT REALLY KNOWING, NOT REALLY HAVING THE TRAINING, I GUESS, AND THE ALL THE INFORMATION FOR OUR LEASES LIKE COPIERS.
BUT NOW NEXT YEAR, IT'S GOING TO BE REALLY CHALLENGING FOR SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS, WHICH IS SOFTWARE LICENSES BASICALLY AND SUBSCRIPTION.
SO WE ARE REQUIRED TO RECORD IT AS A REVENUE AND AN EXPENDITURE.
SO WE BUDGETED CAPACITY FOR THOSE AND TO SET THOSE CAPITAL LEASES UP.
AND SO THEY COULD BE SIGNIFICANT.
BUT SO I'VE HIGHLIGHTED THAT INFORMATION SO THAT THE COMMUNITY AND EVERYONE KNOWS THAT THAT'S A REQUIREMENT THAT WE'RE GOING TO BE FOLLOWING.
SO WHAT IT DOES, THOUGH, IS IT CREATES A SENSE OF HOW MUCH YOU'RE SPENDING ON STUDENTS. IT CHANGES THAT RATIO.
IT IT ARTIFICIALLY INFLATES IT.
AND IT'S I'M NOT SURE WE'VE ALL ASKED WHY WHY DO WE NEED YOU KNOW, BECAUSE WE'RE LOOKING AT THIS FROM A STUDENT BASED PROGRAM.
AND BUT UNFORTUNATELY, THIS IS A REQUIREMENT THAT WE WILL BE AUDITED ON.
SO WE WILL BE COMPLETING ALL OF THE STEPS NECESSARY TO IMPLEMENT THOSE LEASES.
YOU SAID THAT WAS FEDERAL, NOT STATE? THAT IS ACTUALLY A STATE REQUIREMENT.
AND ACTUALLY, NOW THAT I RECALL, WASHINGTON STATE WAS BEHIND IN IMPLEMENTING THAT FOR SCHOOLS.
OTHER STATES HAD DONE THAT ALREADY.
MICHELLE, I JUST WANT TO CAUTION YOU THAT FOR TO BE AWARE OF TIME.
OKAY. SO YOU'RE ON PAGE FIVE AND YOU'VE GOT 16 PAGES.
THANK YOU, MR. WATERS. I WILL GET MOVING HERE.
ALL RIGHT. LET'S GO RIGHT ON TO STAFFING NEXT PAGE.
SO WE ARE ON PAGE SIX STAFFING.
SO WE HAVE ACTUALLY INCREASED STAFFING THIS YEAR.
WE HAVE INCREASED COUNSELORS, CURRICULUM, ADOPTION COORDINATOR, DIRECTOR OF INSTRUCTIONAL LEADERSHIP, CAREER AND TECHNOLOGY, TECHNICAL EDUCATION TEACHERS, AS WELL AS OUR CLASSIFIED INCREASES IN SOCIAL EMOTIONAL LEARNING.
PARENT EDUCATORS, CAMPUS SECURITY, MIDDLE SCHOOL SECURITY HAD A LEAD HEAD CUSTODIAN, PSYCHOLOGY INTERN, FAMILY RESOURCE CENTER ADVOCATE, TRANSITIONAL KINDERGARTEN PARENT EDUCATORS, COMMUNICATION SPECIALIST, PRESCHOOL INSTRUCTOR AND TRANSPORTATION ASSISTANT.
SO AND THEN THERE'S ALSO AN INCREASE FOR HOURS AND DAYS.
SO WHEN WE SAY SEVEN CERTIFICATED EMPLOYEES, THAT IS SEVEN, FTE, THAT IS SEVEN, THAT'S SEVEN FOLKS. FOR THE CLASSIFIED EMPLOYEES, THE 34 INCREASE IS REALLY CLOSER TO AROUND.
IT COULD BE UP TO 55 PEOPLE BECAUSE THE BASIS FOR THAT IS BASED ON A YEAR ROUND.
AND SO FOR SCHOOL YEAR, IT'S A 192 DAYS.
SO LOTS OF INCREASES IN STAFFING AND IT'S OUR STUDENTS NEED ADDITIONAL SUPPORT SO AND THIS IS SO THOSE ARE IMPORTANT INCREASES SO EXPENDITURES BY ACTIVITIES.
[00:30:04]
SO WE'LL GO ON TO EXPENDITURES AND OUR TOTAL EXPENDITURES FOR THE DISTRICT ARE $214,404,119.AND 71% OF THAT IS FOR TEACHING ACTIVITIES AND TEACHING SUPPORT.
AND I'VE LISTED THAT INCLUDES THE CLASSROOM TEACHERS SUPPLIES, EXTRA CURRICULAR LIBRARY COUNSELORS, AND THEN WE HAVE OTHER SUPPORT, WHICH IS OUR TRANSPORTATION MAINTENANCE GROUNDS, CUSTODIANS, UTILITIES, 17.4% AND BUILDING ADMINISTRATION, WHICH IS OUR PRINCIPALS AND BUILDING OFFICE STAFF.
SO THE REALLY IT IS SUPPORTING THE, WHOLE PROGRAM 5.8% AND THEN CENTRAL ADMINISTRATION OF SEVEN UP 5.7%. SO THAT'S BY ACTIVITY.
AND THEN WE HAVE EXPENDITURES THAT WE LOOK AT IN A DIFFERENT WAY.
AND OBJECT IS BASED ON CLASSIFIED SALARIES, CERTIFICATED SALARIES, EMPLOYEE BENEFITS AND PURCHASE SERVICES, TRAVEL AND OUTLAY.
AND ABOUT 76, 76.2% OF OUR BUDGETED EXPENDITURES IS SALARY AND BENEFITS.
IT MAKES UP $163 MILLION OF OUR BUDGET.
WE DO. IT'S IMPORTANT TO NOTE WE DO CONTRACT FOR TRANSPORTATION NUTRITION SERVICES, SO THAT PERCENTAGE WOULD BE CLOSER TO 80% IF WE WERE IF THOSE EMPLOYEES WERE WITH OUR SCHOOL DISTRICT.
SO WHEN? SO I WANTED TO NOTE THAT THERE ARE SOME CHANGES IN OUR ESSER FUNDING AND AGAIN WE'LL GO THROUGH ESSER FUNDING, BUT WE HAVE REDUCED OUR EXPENDITURES IN ESSER BY $4.3 MILLION AND WE HAVE INCREASED IN OUR WITHOUT ESSER OUR EXPENDITURES BY $15.8 MILLION.
SO YOU CAN SEE THE CHANGES THERE.
SO BY PROGRAM, I HAVE A TABLE HERE AND I WON'T GO THROUGH IT SPECIFICALLY, BUT IT DOES, IT DOES COVER DIFFERENT PROGRAM ACTIVITIES.
AND SO THAT IS ANOTHER WAY THAT WE LOOK AT EXPENDITURES IS BY PROGRAM MOVING TO PAGE TEN AND WE ARE NOW LOOKING AT THE ESSER.
SO ESSER EXPENDITURES ARE FUND BALANCE NEUTRAL.
IT'S IMPORTANT TO KNOW THAT THE WEEK WE HAVE BUDGETED FOR THE REIMBURSEMENT OF ALL THESE EXPENDITURES IN REVENUE AND WE MUST EXPEND ALL OF OUR ESSER FUNDS BY 23 24.
SO WE HAVE ESSER TO WHERE WE HAVE WE HAVE STAFFING IN ESSER 2 AS WELL AS PPE AND $1.5 MILLION.
WE HAVE ESSER 3 WITH STAFFING AS WELL.
AND I JUST WANT TO SAY THAT IS TO RESPOND TO STUDENT NEEDS AS THEY ARISE.
SO AS THE DISTRICT IS PRESENTED WITH OPPORTUNITIES TO SUPPORT STUDENTS, THEY MAY USE THAT FUNDING FOR THOSE PURPOSES FOR OUR ESSER THREE.
AND I'M SORRY, IT SHOULD HAVE SAID IN THE IN THE COLUMN LEARNING LOSS.
SO THERE'S TWO ESSER THREES, THERE'S THE 80% FOR GENERAL AND THEN 20% FOR LEARNING LOSS.
SO THAT'S THE NEXT TABLE DOWN, WHICH IS SUMMER SCHOOL TEACHERS, ABOUT 44 SMALL CONTRACTS FOR THOSE DURING THE SUMMER TO HELP SUPPORT STUDENTS AND OUR MATH EDUCATORS AND SOME LEARNING RECOVERY RESOURCES AND SUPPLIES, WHICH YOU'LL SEE ON SOME OF THOSE LEARNING RECOVERY ARE ON YOUR AGENDA FOR TONIGHT INTO THE CONSENT.
SO TOTAL ESSER FUNDS OF $5.7 MILLION WE WILL STILL HAVE AVAILABLE FOR 2324 ABOUT 3.25 TO 4.25, DEPENDING ON HOW THE HOLDING SPENDS OUT AND THINGS LIKE THAT.
SO WE HAVE I HAVE A TABLE HERE FOR LEVY USE OF LEVY FUNDS JUST TO GIVE YOU AN IDEA ON USING THOSE FUNDS FOR BUILDING LEVEL AND OTHER ACTIVITIES AT THE BUILDING LEVEL AND THEN OUR DISTRICT
[00:35:03]
WIDE SUPPORT AND I HAVE INFORMATION THAT EXPLAINS EACH ONE OF THOSE.IT'S IMPORTANT TO NOTE THAT IT'S GREATER THAN OUR LEVY RECEIVABLE FOR THE YEAR.
BUT THAT'S BECAUSE WE HAVE FUND BALANCE THAT HAS LEVY FUNDS THAT ARE IN OUR FUND BALANCE THAT WE WILL BE PULLING OUT AND USING FOR THOSE ACTIVITIES.
SO AND WE'LL GO THROUGH FUND BALANCE HERE IN JUST A MOMENT.
SO IN SUMMARY, TOTAL REVENUES FOR THE DISTRICT, $201,655,049.
TOTAL EXPENDITURES OF 214,404 ONE 119.
AND THEN OUR TRANSFER OUT TO DEBT SERVICE SPEND OF 345,000.
SO EXPENDITURES ARE EXCEEDING REVENUE BY $13 MILLION, $13,094,070.
OUR PROJECTED BEGINNING FUND BALANCE IS 42,950,000.
AND WE'LL GO THROUGH THAT, THOSE DIFFERENT CATEGORIES.
AND THEN ENDING FUND BALANCE WILL BE AT 29,855,000 930 IN THIS BUDGET.
ON THE NEXT PAGE IS THE FUND BALANCE RESERVES AND I HAVE BROKEN OUT.
AND THEN YOU'LL NOTE THAT WE DO HAVE ASSIGNED FOR OTHER PURPOSE.
AND THOSE ARE PROGRAM FUNDS AND WE TALKED A LOT ABOUT THIS LAST YEAR, ESPECIALLY WHEN WE WERE LOOKING AT A LEVY LOSS OF WHAT THAT WOULD DO TO TAKING AWAY CURRICULUM ADOPTIONS, TAKING AWAY SOCIAL EMOTIONAL LEARNING PROGRAMS THAT WE HAVE, CAPITAL FACILITY OR IMPROVEMENTS, FACILITY IMPROVEMENTS.
SO WE ARE STILL GOING TO USE SOME OF THOSE FUNDS AND I'LL GO THROUGH THAT WITH YOU.
AND THEN WE HAVE OUR UNASSIGNED FUND BALANCE WHERE WE DO HAVE SOME UNASSIGNED THAT IS PROJECTED FOR THE END OF THIS, THE 20, THE 22 THE PROJECTED BEGINNING FUND BALANCE FOR 22 23.
SO SOME OF THE WAYS THAT WE'RE GOING TO USE THOSE THAT $13,683,669 OUT OF OUR ASSIGNED IS EXACTLY WHAT WE WANTED TO USE IT FOR.
WE WANTED TO USE IT FOR CURRICULUM ADOPTIONS.
WE HAVEN'T BEEN ABLE TO DO, AS MS. SWINTON POINTED OUT EARLIER, CURRICULUM ADOPTIONS AND SO FOR MANY YEARS SO AND THEY'RE VERY EXPENSIVE AND THEY'RE VERY DIFFICULT TO BUDGET WITHIN JUST A NORMAL OPERATING BUDGET.
SO WE NEED TO HAVE THOSE YOU HAVE TO BUILD UP MONEY TO GET THOSE ADOPTIONS THROUGH.
SO THAT'S $3.75 MILLION FOR ELA, K-8, MIDDLE SCHOOL SOCIAL STUDIES AND THEN POTENTIALLY GETTING STARTED ON OUR SEL ADOPTION.
SO TECHNOLOGY AND INFRASTRUCTURE.
SO SCOTT'S ALREADY GOT THAT ALL PLANNED OUT OF HOW THAT'S GOING TO WORK.
AND THEN ALSO PUBLIC RELATIONS AND COMMUNICATION OPERATIONS AND CAPITAL IMPROVEMENTS AND SOCIAL EMOTIONAL LEARNING.
SO AND THEN THE FINAL AMOUNT THATS USED IS $8.2 MILLION IS FROM SOME OF OUR ENROLLMENT STABILIZATION AND PROGRAM SAVINGS RESERVE. BUT IT'S IMPORTANT TO NOTE THAT THOSE DOLLARS ARE BASICALLY THE DOLLARS THAT WE'RE GOING TO HAVE TO SAY, HOW CAN WE CONTINUE TO MOVE FORWARD AS THE ENROLLMENT, YOU KNOW, IF THE ENROLLMENT DOESN'T INCREASE? SO THAT'S BASICALLY SUPPORTING THE ENROLLMENT THAT WE'RE CURRENTLY UNDER RIGHT NOW WITH OUR CURRENT STAFFING.
DOES ANYBODY HAVE ANY QUESTIONS? ALL RIGHT. AS IT RELATES TO ENROLLMENT STABILIZATION, THE STATE HAS MADE CLEAR THAT THIS WILL BE THE LAST YEAR? THAT WE WILL RECEIVE ANY ENROLLMENT STABILIZATION THAT DISTRICTS NEED TO JUST IF IT DOESN'T COME BACK THIS YEAR, YOU NEED TO ADJUST.
RIGHT. SO FOUR YEAR PROJECTIONS WILL BE PART OF OUR BUDGET PRESENTATION OR BUDGET HEARING.
[00:40:02]
AND WE'LL ALSO LOOK AT THAT TOO, BECAUSE IT'LL BE OUR LAST YEAR OF ESSER FUNDS NEXT YEAR.AND SO WE'LL ALSO BE LOOKING AT THAT.
SO MAYBE NOT A QUESTION, BUT JUST A UNDERSTANDING CHECK BECAUSE NORMALLY EXCEEDING OUR INCOME BY 13 MILLION MIGHT BE CONCERNING TO CITIZENS, BUT THAT'S RELATED TO SOME ONE TIME FUNDS LIKE ESSER AND ENROLLMENT STABILIZATION THAT ARE ALLOWING US TO CATCH UP ON SOME OF THOSE BACKLOG THINGS LIKE CURRICULUM AND THAT WE WOULDN'T EXPECT THAT AS IN EVERY YEAR.
RIGHT. WE WOULDN'T BE ABLE TO SUSTAIN IT.
RIGHT. RIGHT, RIGHT. YEAH. WELL YOU WOULD FOR.
AND PART OF THE REASON IS BECAUSE WE HAVEN'T BEEN ABLE TO SPEND IT.
WE COULDN'T DO, AS SHELLEY POINTED OUT MANY TIMES IN THE PAST, FOR INSTANCE, WE COULDN'T DO A LARGE YOU KNOW, WE WENT THROUGH AND WE DID THE SEX ED ADOPTION, BUT ONLY BECAUSE OF THE TIMELINE.
WE DIDN'T HAVE THE TIME TO DO THE TRAINING.
WE WERE OVERWHELMED WITH JUST WHAT WAS GOING ON IN THE CLASSROOMS AT THE TIME.
AND THEORETICALLY, I'M TRYING TO DO LAYMAN'S TERMS RIGHT.
WELL, AND HOPEFULLY WHEN YOU'RE PREPARING TO BUY YOUR OWN CAR.
THE NEW CAR. YOU'VE SAVED SOME MONEY, RIGHT? RIGHT, RIGHT. YOU PUT SOME MONEY AWAY SO YOU CAN PUT A BIG DOWN PAYMENT ON IT.
RIGHT. AND THAT'S EXPECT TO SPEND MORE.
YOU KNOW, WE'VE GOTTEN SOME MONEY TO USE.
AND THAT'S WHY WE'RE OVER WHAT OUR TO BRING IN.
IN TWO OF THE THREE ADOPTIONS ARE PRETTY SIZABLE ADOPTIONS.
THE ELA IS A VERY BIG ADOPTION.
AND PLUS, WE NEED SOCIAL EMOTIONAL LEARNING.
AND THAT CURRICULUM IS A K-12 CURRICULUM THAT WE NEED TO LOOK AT AS WELL.
IT'S NOT AS BIG AS AN ELA, OF COURSE, BUT IT CERTAINLY IT CERTAINLY IS WORTH NOTING THAT NONE OF THOSE IN AND OF THEMSELVES ARE SMALL ADOPTIONS. ALL RIGHT.
I'M JUST GOING TO BREEZE THROUGH OUR ASB DEBT SERVICE AND CAPITAL PROJECTS.
AS YOU KNOW, THE ASB IS A STUDENT LED BUDGETING, AND SO WE HAVE WORKED WITH ALL OF THEM.
AND THIS IS A CULMINATION OF ALL OF OUR ASBS, THE EXPENDITURES AND REVENUES AND THEN ON AND THEY'RE PLANNING ON USING SOME OF THEIR FUND BALANCE, WHICH IS GOOD BECAUSE THEY DO HAVE FUND BALANCE AVAILABLE AND THEY SHOULD, YOU KNOW, USE IT IF THAT'S IF THEY CHOOSE TO DO SO.
OUR DEBT SERVICE IS IT IS JUST TO A COLLECTION OF OUR REVENUES THROUGH TO MAKE OUR BOND PAYMENT.
SO LOCAL TAXES AND AGAIN OUR VOTED DEBT WILL BE PAID OFF IN DECEMBER OF 23 AND OUR NON VOTED A DECEMBER 24 CAPITAL PROJECTS SPAN.
WE HAVE SEVERAL PROJECTS THAT WE'RE WORKING ON.
WE'RE WORKING ON THE CAMP PROJECT YACOLT PRIMARY CLASSROOM MODULAR IS PROJECTED AND THEN AS WELL AS A DISTRICT SUPPORT WAREHOUSE, DISTRICT WIDE SUPPORT WAREHOUSE.
AND THEN WE'VE ALSO PUT SOME EXTRA CAPACITY.
SO WE HAVE A MODULAR WE'VE ORDERED, RIGHT, THAT KEVIN'S ORDERED IT'S $3.9 MILLION.
IF IT DOESN'T GET HERE BY 831, THEN WE HAVE TO HAVE THAT CAPACITY IN THE NEXT YEAR.
SO WE HAVE TO BUILD THIS A REALLY STRONG CAPACITY IN CASE THOSE DON'T COME THROUGH.
SO AND WE'LL BE USING IMPACT FEES TO PAY FOR THOSE PROJECTS.
THE FOUR YEAR FORECAST, LIKE I MENTIONED, WILL PRESENT THAT AT OUR BUDGET HEARING AND GIVE INFORMATION ON THAT UNLESS YOU WANT IT SOONER AND WE WOULD BE MORE THAN HAPPY TO BRING IT BACK AT ANOTHER FOR OUR FIRST MEETING.
AND I'M SORRY, IT'S NOT AUGUST 25TH.
IS THAT RIGHT, SANDY? YES, THANK YOU FOR.
YES, SANDY CORRECTED ME EARLIER AND I FORGOT TO GET THAT CHANGED.
WE'RE STILL STRUGGLING WITH THAT.
I THINK WE'LL HAVE SOME GROWTH THERE.
[00:45:01]
SO I THINK WE HAVE SOME OPPORTUNITY TO INCREASE SOME OF OUR NUMBERS AND WE'LL PROJECT, OF COURSE, OUR CERTIFICATE STAFFING TO INCREASE THOSE NUMBERS GROW.THE STATE IN FUNDED INFLATIONARY INCREASE IS SAID IS PROJECTED BY THE STATE AND IT'S POSTED AT OSPI.
IT'S 2% FOR 23, 24, 2.1% FOR 24 25.
AND THEN WE'LL USE 2% FOR 25 26 IN THAT BUDGET.
AND AGAIN, IT'S JUST MANAGEMENT'S BEST ESTIMATES OF PROJECTING OUT WHAT THOSE WILL LOOK LIKE FOR THOSE FUNDS AND THEN THE USE OF ESSER FUNDS. SO THAT'S ALL I HAD TONIGHT FOR THE BUDGET WORKSHOP.
MICHELLE, I KNOW YOU CAN'T ANSWER THIS QUESTION, BUT I'M JUST ASKING FOR YOUR EXPERTISE ON THIS.
GIVEN THAT THE INFLATIONARY THE IPD THIS YEAR WAS 5.5 AND WITH INFLATION THE WAY IT IS, DO WE REALLY SEE IT COMING IN NEXT YEAR AT JUST 2.0.
I WELL, YOU KNOW, I, WHEN THINK SO.
SO WITH AND THE IMPLICIT PRICE DEFLATOR USING THAT RATE IS MUCH LESS THAN THE CONSUMER PRICE INDEX.
AND SO, SO WHEN WE'RE HEARING NUMBERS THROWN AROUND LIKE YOU'RE SAYING.
YEAH, THAT'S CONSUMER PRICE INDEX.
YEAH, RIGHT. AND SO CPI IS MUCH LOWER, TYPICALLY.
SO WE'LL WATCH THAT AS WE'RE CONTINUING AS THE REVENUE FORECAST FROM THE STATE ARE UPDATED.
SO SO THOSE ARE PROJECTED NUMBERS, PROJECTED.
NOT WRITTEN IN STONE NUMBERS, CORRECT? YES, THEY ARE PROJECTIONS JUST LIKE THE FOUR YEAR WILL BE JUST A PROJECTION.
THANK YOU, MICHELLE. THANK YOU, MICHELLE.
YEAH. KNOWING THAT ONE OF THE SCHOOL BOARD'S MOST IMPORTANT JOBS IS TO KEEP THIS DISTRICT FINANCIALLY STABLE, IT'S NICE TO HAVE MICHELLE ON OUR SIDE SO.
OKAY, GOOD. SO THAT IS OUR SPECIAL MEETING WORK SESSION FOR JULY 25, 2022.
OUR REGULAR MEETING WILL START AT 6:00.
THIS SPECIAL WORK SESSION IS ADJOURNED.
MICS CAN GO OUT FOR A FEW MINUTES.
THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.