[00:00:01]
ALL RIGHT. GOOD AFTERNOON EVERYONE.
[1. Call to Order]
WE HAVE OUR SPECIAL WORK SESSION THIS AFTERNOON FOR MONDAY, MARCH 11TH, AND WE'LL CALL THIS MEETING TO ORDER AND TURN THE DISCUSSION OVER TO[2. Work Session]
SUPERINTENDENT WATERS FOR 2425 BUDGET DISCUSSION.BOARD. AS YOU ALL KNOW IF YOU'RE KEEPING UP WITH THE NEWS YOU HAVE SEEN DISTRICTS ALL AROUND US, MOST NOTABLY EVERGREEN SCHOOL DISTRICT WITH $20 MILLION OF CUTS.
VANCOUVER SCHOOL DISTRICT WITH $35 MILLION OF CUTS.
WASHOUGAL IN DIRE ECONOMIC STRAITS WITH A SERIES OF CUTS.
WE HAVE BEEN TALKING ABOUT OVER THE COURSE OF THE LAST 3 OR 4 YEARS, THE IDEA THAT AT SOME POINT WE WOULD REACH A FISCAL CLIFF WITH THE ENDING OF ESSER FUNDS.
WHILE WE HAVE DONE WELL TO REDUCE THAT CLIFF INTO A BIG SLOPE INSTEAD OF A CLIFF, WE ARE STILL AT THAT POINT NOW WITH ESSER FUNDS ENDING THAT, WE FIND THE NEED TO MAKE SOME CUTS IN OUR BUDGET BECAUSE IT WILL BE UNSUSTAINABLE.
WE'RE CURRENTLY OPERATING WITH APPROXIMATELY $10 MILLION OF $10 MILLION BEYOND WHAT WE ARE RECEIVING FROM THE STATE AND FEDS AND FROM LOCAL FUNDING SOURCES, AND SO WITH THE END OF THOSE ESSER FUNDS, AND I WOULD POINT OUT ALSO WITH THE REDUCTION OF THE TITLE FUNDS THAT WE ARE EXPERIENCING, WE ARE LOOKING AT APPROXIMATELY AN $8.5 MILLION SHORTAGE IN TERMS OF FUNDING.
WE ARE COMING TO YOU TODAY BECAUSE AS PART OF THIS WORK SESSION, WE WOULD LIKE TO EXPLORE THE POSSIBILITY WITH THE BOARD OF ACCESSING SOME OF OUR FUND BALANCE TO HELP MINIMIZE THOSE CUTS EVEN MORE AND SO WITH THAT I'M GOING TO HAVE A SHORT PRESENTATION OR SHORT DISCUSSION.
IT'S NOT REALLY A PRESENTATION BY OUR CFO, MICHELLE SCOTT, WHO'S GOING TO PAINT YOU A PICTURE OF KIND OF GIVE YOU AN IDEA, EVEN THOUGH YOU'RE WELL AWARE BECAUSE OF OUR BUDGET DISCUSSIONS, BUT WE HAVE NEW BOARD MEMBERS TO TRY TO GIVE YOU AN IDEA OF HOW WE GOT WHERE WE ARE, AND THEN WE'RE GOING TO HAVE OUR DEPUTY SUPERINTENDENT SHELLY WHITTEN PROVIDE YOU WITH SOME BACKGROUND INFORMATION ON OUR FUND BALANCE AS IT EXISTS CURRENTLY.
WHAT OTHER FUND BALANCES ARE LIKE IN OUR AREA? SO YOU CAN GET A COMPARISON OF WHAT OTHER DISTRICTS, HOW THEY ARE OPERATING, AND THEN FINALLY, I'LL RETURN AND GO THROUGH OUR OWN POLICY AS IT RELATES TO FUND BALANCE.
OUR HOPE IS THAT WE WOULD BE SPEAKING FOR A SHORT TIME, MAYBE 15 MINUTES AT THE MAX, AND THEN WE WOULD TURN IT OVER TO THE BOARD TO EITHER ASK CLARIFYING QUESTIONS OR FOR YOURSELVES TO HAVE A DISCUSSION ABOUT SOME OF THE POINTS THAT WE'VE BROUGHT UP.
SO WITH THAT, I'M GOING TO TURN IT OVER TO OUR CFO, MICHELLE SCOTT.
DENNY HAS QUEUED IT UP JUST PERFECTLY.
WE HAVE A WE HAVE BUDGET CHALLENGES FOR THE 2425 SCHOOL YEAR.
IT WAS FORECASTED, AND WE HAD PROJECTED THAT WHEN THE ESSER FUNDS, WHICH IS THE ELEMENTARY AND SECONDARY SCHOOL EMERGENCY RELIEF FOR THE PANDEMIC RECOVERY WAS SET TO EXPIRE THIS YEAR.
WE ARE CURRENTLY USING ABOUT $7.2 MILLION OF ESSER FUNDING, AND THAT IS PROVIDING STUDENT LEARNING AND SUPPORT AS WE AS STUDENTS DO RECOVER FROM PANDEMIC, AND WE ARE USING IT ALSO FOR CONTINUITY OF OPERATIONS AS OUR STUDENT ENROLLMENT RECOVERS FROM POST PANDEMIC.
[00:05:02]
IN ADDITION AS DENNY MENTIONED, THE DISTRICT WAS NOTIFIED THAT THE DISTRICT WILL NOT QUALIFY FOR THE TITLE ONE FUNDS FOR TARGETED ASSISTANCE FOR THE 24-25 SCHOOL YEAR, WHICH IS A REVENUE REDUCTION OF $1.3 MILLION.WE'RE CURRENTLY THROUGH MIDWAY THROUGH THE 23-24 SCHOOL YEAR, AND WE'RE CURRENTLY REMAINING TO REMAIN CLOSE TO BUDGET. WE ARE USING FUND BALANCE CURRENTLY, AND THE FUND BALANCE IS A COUPLE OF BIG ITEMS, ONE PART OF ITS CONTINUITY OF OPERATIONS, AND THE OTHER PART IS FOR CURRICULUM ADOPTION MONEY THAT WAS SET ASIDE.
SO AS WE BEGIN TO DO THE EARLY STAGES OF THE 24-25 BUDGET SEASON, WE'RE STILL PROJECTING ENROLLMENT, REVENUES, EXPENDITURES.
WE HAVE A LOT OF WORK TO DO, BUT WITH THIS LOSS OF FUNDING, WE DO NEED TO ADDRESS IT RIGHT AWAY, AND IT WOULD BE VERY HELPFUL TO BE ABLE TO HAVE THE BOARD TALK ABOUT THE USE OF FUND BALANCE, 1% OF THE FUND BALANCE TO HELP US OFFSET THOSE EXPENDITURES, THOSE THAT REVENUE AND THE EXPENDITURES THAT COME WITH IT.
JUST AS A POINT OF CLARIFICATION, BOARD, PLEASE BE AWARE THAT WHEN WE SPEAK OF FUND BALANCE, THERE'S ACTUALLY FIVE PARTS OF A FUND BALANCE, AND YOU COULD SEE THAT IF YOU WERE TO ACCESS OUR BOARD DOCS FOR OUR PROCEDURE FOR FUND BALANCE, WHICH IS 6022, IF YOU HAVE YOUR CHROMEBOOKS OPEN, BUT THE FOUR, THE OH, THERE WE GO.
THERE YOU GO. NOW SCROLL UP RIGHT NEXT PAGE.
THAT'S IT. THERE'S ONLY ONE PAGE ON THE PROCEDURE.
THEN IT'S THE SECOND PAGE OF THE POLICY, I APOLOGIZE.
SO YOU CAN SEE THERE THERE'S FIVE MAIN CATEGORIES.
ONE IS NON SPENDABLE FUND BALANCE.
THE SECOND IS RESTRICTED FUND BALANCE.
THOSE ARE RESTRICTED FOR PARTICULAR USE.
FOR INSTANCE, IF IT WAS CARRYOVER FROM CTE OR CARRYOVER FROM LAP OR TITLE OR SPECIAL ED, SOMETHING LIKE THAT, THAT IT HAS TO BE USED FOR A SPECIFIC PURPOSE.
THE COMMITTED FUND BALANCE, WHICH IS SOME OF THE THINGS THAT MICHELLE WAS TALKING ABOUT, FOR INSTANCE COMMITTED FUND BALANCE WOULD BE LIKE WE HAVE PREPAIDS IS THAT ACTUALLY ON THE COMMITTED FUND BALANCE? THAT'S BY RESOLUTION OF THE BOARD TO COMMIT A AND I DON'T THINK THAT WE HAVE ANY WE DO NOT CARRY A COMMITTED.
THOSE ARE LIKE THE THINGS WHERE WE SET ASIDE MONEY TO DO PARTICULAR THINGS, LIKE, FOR INSTANCE, FOR US, WE SET ASIDE MONEY ASSIGNED FUND BALANCE TO DO CURRICULUM ADOPTIONS, AND THEN REALLY THE FUND BALANCE THAT WE ARE TALKING ABOUT TODAY, MORE SO THAN ANYTHING ELSE, IS CATEGORY NUMBER FIVE, THE UNASSIGNED FUND BALANCE.
THAT'S THE THAT'S THE FUND BALANCE THAT IS REFERENCED IN THE POLICY FOR US.
WE'RE SUPPOSED TO HAVE CLOSE TO WE'RE SUPPOSED TO HAVE 6% OF EXPENDITURES.
SO FOR US WITH OUR EXPENDITURES OUR BUDGET PROJECTIONS AT WHERE THEY WERE LAST YEAR, WE NEEDED TO HAVE OVER $14 MILLION OF ASSIGNED UNASSIGNED FUND BALANCE.
SO THAT'S THE ONE THAT WE ARE TALKING MOST ABOUT NOW.
[00:10:04]
THEY IN MANY INSTANCES ARE TALKING ABOUT THE ACCUMULATION OF ALL OF THESE DIFFERENT CATEGORIES, BUT FOR US, IT'S NUMBER FIVE THAT REFERENCES OUR FUND BALANCE.SO WITH THAT I'LL TURN IT OVER TO YOU SHELLEY.
SO IN FRONT OF YOU BOARD YOU HAVE A PACKET, AND ON THE VERY FRONT PAGE OF THE PACKET IS A SHEET THAT SAYS LOCAL SCHOOL DISTRICT'S FUND BALANCE POLICY AND WHAT I'D LIKE TO POINT OUT TO YOU AND YOU ALSO HAVE ALL OF THOSE POLICIES OF THEIR DISTRICTS BEHIND IT.
SO AS DENNY SAID, OUR POLICY IS 6%, AND THEN IN OUR PROCEDURE, THERE'S A COMMITMENT THAT WE MADE IN OUR PROCEDURE TO GET UP TO 6% BY ALLOCATING AT LEAST 500,000 PER YEAR WHEN WE WERE BELOW 6%.
SO DISTRICTS OFTENTIMES PUT IN A CAVEAT OF HOW TO GET BACK TO IT WHEN THEY WHEN THEY GO BELOW IT.
YOU CAN SEE WHAT THOSE THE DISTRICTS HOW MUCH IS LISTED IN THEIR POLICY.
CAMAS IS THE ONLY SCHOOL DISTRICT THAT DOESN'T LIST A PERCENT, AND YOU CAN SEE THE OTHER DISTRICTS LIST A PERCENT, BUT SOME DISTRICTS ACTUALLY HAVE OTHER THINGS ASSIGNED BESIDES THE MINIMUM FUND BALANCE.
FOR INSTANCE, I'LL POINT OUT IN EVERGREEN'S POLICY, IT'S 5% OF UNASSIGNED MINIMUM FUND BALANCE AS WELL AS NON SPENDABLE FUND BALANCE INVENTORY. SO THAT'S LIKE YOUR POST-IT NOTES AND YOUR YOUR EXTRA DESKS THAT ARE IN THE WAREHOUSE.
THOSE ARE THE THINGS THAT THE DISTRICT HAS PURCHASED, BUT THEY HAVE A VALUE, AND THOSE VALUES ARE CONSIDERED PART OF THEIR UNASSIGNED FUND BALANCE AS WELL AS THEIR PREPAID ITEMS. SO THE STATE A COUPLE OF YEARS AGO MADE A PLAN.
I'M NOT SURE IF I'M SAYING THAT RIGHT.
MICHELLE COULD PROBABLY CORRECT ME, BUT THEY BASICALLY SAID IF YOU HAVE HAVE OBLIGATED THE DISTRICT TO MONIES, THEN YOU NEED TO SET ASIDE THOSE PREPAIDS SO THEY INCLUDE THOSE SET ASIDES AS PART OF THEIR UNASSIGNED FUND BALANCE AS WELL.
SO SOME DISTRICTS INCLUDE DIFFERENT THINGS.
WHAT THAT AMOUNT IS AT THE END OF THE YEAR, WHAT WE EXPENDED AS OF THE END OF THE YEAR, 6% OF THAT SET ASIDE FOR VANCOUVER AND WASHOUGAL, IT'S WHAT THEY BUDGET TO THEIR UNASSIGNED FUND BALANCE IN THEIR GENERAL FUND EXPENDITURES.
SO WHAT THEY EXPECT TO SPEND IS WHAT THEY SET IT ON, NOT WHAT THEY ACTUALLY SPEND.
DO YOU HAVE ANY QUESTIONS ABOUT THAT NUANCE? NO? YES, IT'S A LITTLE BIT COMPLEX.
THE OTHER THING THAT I THINK IS IMPORTANT TO KNOW IS THAT THIS IS OFTEN THOUGHT OF AS THE SAVINGS ACCOUNT FOR THE SCHOOL DISTRICTS, AND SO MANY OF THE DISTRICTS HAVE A CONTINGENCY.
YOU CAN SEE THAT IN IN THE LAST COLUMN THERE IT SAYS WHAT IS THEIR CONTINGENCIES.
BASICALLY YOU CAN SEE THAT EVERGREEN.
IT SAYS IF IT DROPS BELOW 5%, A PLAN TO RETURN THE FUND BALANCE WILL BE MADE AND PRESENTED TO THE BOARD AND IT ACTUALLY SAYS IN THEIR POLICY ANNUALLY, AND THEN VANCOUVER, IT SAYS TARGETS ARE ALLOWED TO BE ACHIEVED OVER A FIVE YEAR PERIOD WHEN FALLING BELOW IT.
SO AND THE OTHER SCHOOL DISTRICTS DON'T NECESSARILY HAVE IT IN THEIR POLICY.
OURS IS ACTUALLY IN OUR PROCEDURE.
SO I'LL FLIP, HAVE YOU FLIP TO THE LAST TWO PAGES OF THAT PACKET THAT WAS GIVEN TO YOU.
YOU'RE GOING TO LOOK FOR A DOCUMENT THAT LOOKS LIKE THIS.
SO YOU KIND OF CAN UNDERSTAND THE HISTORY OF THE FUND BALANCE, AND WHEN WE ACTUALLY GOT UP TO THE 6%, YOU CAN SEE THERE THAT WE CHANGED OUR POLICY FROM 3% TO 6% IN 2017, AND AT THAT POINT, WE STARTED SETTING ASIDE ABOUT A HALF $1 MILLION PER YEAR.
AS WE PROCEEDED, WE WERE MAKING SLOW, INCREMENTAL ADVANCES TO GET TO THAT 6%, BUT YOU CAN SEE THAT WE DID NOT ACHIEVE THAT UNTIL THE END OF THE 2021 FISCAL YEAR, AND ESSENTIALLY WHAT IT ALLOWED US TO DO THAT IS THE ADDITIONAL FEDERAL FUNDS
[00:15:06]
THAT WE RECEIVED DUE TO COVID.SO PRIOR TO RECEIVING THOSE FUNDS, WE HAD NEVER ACTUALLY ACHIEVED THE 6% THAT WAS IN OUR POLICY.
WE JUST CONTINUED TO PUT A HALF $1 MILLION TOWARDS THAT EACH YEAR.
SO HAVING THOSE ADDITIONAL FEDERAL DOLLARS OVER THESE LAST FIVE YEARS IS WHAT HAS ALLOWED US TO MAINTAIN THAT, THAT UNASSIGNED FUND BALANCE.
WHICH MAKES SENSE, BECAUSE WHEN YOU LOOK AT WHAT WE WERE SPENDING BACK THEN, WE WERE SPENDING OUR EXPENDITURES AT THE END OF THAT YEAR, OF 2021 WERE 1 OR $172 MILLION AT THE END OF THAT YEAR AND THIS YEAR, WE ANTICIPATE THOSE AMOUNTS TO BE $232 MILLION.
SO OVER THOSE YEARS, $50 MILLION MORE IN EXPENDITURES THAT WE HAVE SPENT EACH YEAR.
SO YOU CAN SEE THAT INFLATION IS IMPACTING US.
IT'S OUR EXPENDITURES ARE CERTAINLY GOING UP.
HAD IT NOT BEEN FOR THOSE FEDERAL DOLLARS WE WOULD NOT HAVE PROBABLY ACHIEVED THAT 6% IN ANY WAY.
IT WAS 6%, BUT THE 6% IN 2021 WAS EQUIVALENT TO $10.4 MILLION.
YEAH, THE 6% IN 2023-24 IS EQUIVALENT TO $13.9 MILLION.
SO EVEN THOUGH WE'VE LEFT OUR FUND BALANCE AT 6%, IT CONTINUES TO GROW.
IT GREW BY 1.2 MILLION BETWEEN 21 AND 22, AND IT GREW BY 1.6 MILLION BETWEEN 23 TO 24. SO I JUST HAVE A CLARIFYING QUESTION.
THE 13.9 MILLION IS BASED ON OUR BUDGET OF 232 MILLION.
SO WHICH THIS GETS TRUED UP BY ACTUALS, BUT EARLIER YOU SAID OVER 14 MILLION.
SO IS THAT BASED ON 24-25? OH OKAY. SO IT WAS IT IS [INAUDIBLE]? I KNEW 14 WAS THE RANGE.
I JUST WANTED TO MAKE SURE WE WERE TALKING ABOUT THE SAME THING.
[CHUCKLING] YEAH. LISA, CAN YOU PUT THE FUND BALANCE POLICY BACK ON? WE JUST GOT A CLEAN AUDIT.
YOU CAN'T HAVE ANY ROUNDING ERRORS. [CHUCKLING] YEAH, RIGHT.
RIGHT, RIGHT. CAN YOU GO TO PAGE ONE? SORRY. GO AHEAD. YEAH.
THE ONLY OTHER THING I WOULD DRAW YOUR ATTENTION TO IS THE PIE CHART AT THE VERY END OF YOUR PACKET, AND WE JUST PUT THAT IN THERE BECAUSE I WANTED TO LET YOU KNOW THAT THE TEAM AT DISTRICT OFFICE HAS BEEN WORKING REALLY HARD TO IDENTIFY WHAT, WHAT $8.5 MILLION OF CUTS COULD BE.
THIS IS A COMPARISON OF THE WHAT YOU APPROVED FOR THIS YEAR'S BUDGET.
SO THIS BREAKDOWN IS A BREAKDOWN OF THE AREAS IN WHICH BUDGETS ARE IN, IN THESE ACTIVITY CODES.
THESE PERCENTS ARE WHAT'S BUDGETED.
THE PERCENTS OF REDUCTION IS TO JUST SHOW YOU THE AREAS OF STAFFING THAT WE WOULD BE PULLING FROM IF WE WERE TO REDUCE BY $8.5 MILLION, AND THE REASON I SHOW IT TO YOU IS I WANT TO JUST MAKE SURE THAT YOU UNDERSTAND THAT WE'RE TRYING TO KEEP ANY CUTS THAT WE DO MAKE AS FAR AWAY FROM DIRECT STUDENT INSTRUCTION AS POSSIBLE, WHICH IS WHY TEACHING ACTIVITY WENT DOWN. THE GREEN WENT DOWN BY SO MUCH IS BECAUSE IF WE DO NEED TO MAKE $8.5 MILLION IN CUTS, WE WILL TRY AND KEEP IT AS FAR AWAY FROM THE CLASSROOM AS POSSIBLE.
SO IT JUST GIVES YOU AN IDEA OF WHAT WE'VE IDENTIFIED AS POTENTIAL.
GOING BACK TO OUR POLICY YOU CAN SEE THERE AGAIN, IF YOU'RE LOOKING AT THE POLICY OR IF YOU'RE LOOKING AT THE TV YOU CAN SEE THAT IT SAYS THERE SOME OF THE UNCERTAINTIES, THE SECOND PARAGRAPH THERE SECOND SECTION THERE,
[00:20:07]
SOME OF THE UNCERTAINTIES AFFECTING THE ESTABLISHMENT OF BUDGETED FUND BALANCE FOR THE GENERAL FUND INCLUDE.SO THESE ARE THE REASONS WHY YOU MIGHT WANT TO USE IT OR HOW YOU GO ABOUT GETTING THERE.
ENROLLMENT FLUCTUATIONS, WHICH FOR US IS STABILIZED.
SO THAT'S NOT REALLY AN ISSUE.
EDUCATIONAL PROGRAMS RELYING UPON LOCAL LEVY FUNDING.
WE HAVE OUR LEVY, BUT CERTAINLY WHEN WE PASSED OUR LEVY FOR YEAR THREE AND A HALF YEARS AGO, THREE YEARS AGO $30 MILLION WAS GOING A LOT FURTHER THAN $30 MILLION IS GOING TODAY.
WE'VE TALKED ENOUGH ABOUT THOSE, YOU KNOW, THAT THERE'S PLENTY OF THOSE OUT THERE.
PASSAGE, FAILURE OF VOTER REFERENDUMS AND LEVIES.
OUR COMMUNITY HAS SUPPORTED US, ESPECIALLY WITH OUR MOST RECENT CAPITAL LEVY.
FINANCIAL IMPACTS OF LABOR AGREEMENTS.
CERTAINLY COSTS FOR LABOR HAVE GONE UP, ENERGY COSTS AND WEATHER RELATED DAMAGES.
ENERGY COSTS ARE CERTAINLY A FACTOR, BUT I THINK THE BIGGEST ONE, G IS LITIGATION.
I THINK THE BIG ONE FOR US IS H LOSS OF STATE AND FEDERAL GRANTS.
CERTAINLY THE TITLE GRANT COMES INTO PLAY THERE, BUT ALSO THE ESSER FUNDING COMES INTO PLAY THERE, AND THEN THE OTHER TWO ARE ARE NOT ISSUES FOR US.
I BELIEVE THAT AS A DISTRICT WE AND WITH YOUR LEADERSHIP, WE HAVE DONE AN OUTSTANDING JOB OF OF BEING GOOD FISCAL KEEPERS IN TERMS OF THE MONIES AND HOW WE USE THEM AND WHAT WE SPEND.
AS I SAID BEFORE, WE KNEW WE WERE GOING TO MAKE CUTS.
WE ARE PREPARED TO MAKE CUTS, BUT THERE'S JUST CERTAIN PROGRAMS THAT IF WE WERE TO TAKE THE 8.5 AND NEEDED CUTS AND WE WERE TO REDUCE THAT BY THE BOARD, ALLOWING US TO USE 1% OF UNASSIGNED FUND BALANCE, WHICH IS EQUIVALENT TO APPROXIMATELY $2.3 MILLION, AND WE WERE TO TAKE THAT $8.5 MILLION WORTH OF CUTS AND LESSEN THAT TO $6.2 MILLION.
THE PAIN WOULD CERTAINLY STILL BE FELT, BUT SOME OF THE PROGRAMS WHICH WE WOULD NEED TO CONSIDER CUTTING WOULD CERTAINLY BE SAVED, AND THE IMPACT WOULD BE LESSENED FOR ALL OF US, INCLUDING OUR STUDENTS WHO WOULD BENEFIT FROM HAVING THOSE SERVICES STILL IN PLACE.
THAT TOOK LONGER THAN I EXPECTED, ABOUT 20 MINUTES.
SO I'M GOING TO SHUT UP AND ASK YOU TO ASK ANY QUESTIONS THAT YOU MIGHT HAVE, AND PERHAPS EVEN ENGAGE IN A DISCUSSION AROUND THIS PARTICULAR ISSUE.
WHEN ARE YOU LOOKING FOR? WHEN ARE YOU LOOKING DENNY FOR THE DECISION FROM US? AT SOME POINT THERE WILL BE A DECISION.
YEAH. I'M ACTUALLY LOOKING FOR A DECISION SOON, AND IT DOESN'T NEED TO BE A FORMAL VOTE, TERRY.
IT JUST NEEDS TO BE A INDICATION THAT YOU ARE GOING TO BE OKAY WITH IT.
WE DO NOT HAVE TO CHANGE OUR FUND BALANCE POLICY IN THAT, I WOULD THINK, UNLESS THE BOARD CHOOSES TO, I WOULD THINK THAT 6% WOULD STILL BE A GOAL FOR US, AND SO BY LEAVING THIS POLICY IN PLACE, IT WOULD JUST MEAN THAT EVEN IF WE SPENT A PORTION OF THE FUND BALANCE, OUR EXPECTATION WOULD THAT BE THAT WE WERE WORKING OUR WAY BACK IN THAT DIRECTION IN TERMS OF TIMING? IT NEEDS TO OCCUR SOON, AND THAT'S PART OF THE ISSUE.
WHILE WE HAVE IDENTIFIED POTENTIALLY $8.5 MILLION IN CUTS WE ARE HESITANT TO MOVE FORWARD BECAUSE WE DON'T HAVE A FINAL SAY ABOUT WHERE WE'RE GOING TO END UP, OBVIOUSLY, AND THIS IS THE HARD PART ABOUT WHENEVER YOU'RE MAKING CUTS IN A
[00:25:01]
SCHOOL DISTRICT, IF YOU ADD UP OUR EXPENDITURES, IF YOU LOOK AT OUR EXPENDITURES, 85 TO 90% OF OUR EXPENDITURES HAVE TO DO WITH PEOPLE.SO WHEN YOU'RE LOOKING TO MAKE CUTS, ESPECIALLY CUTS OF OF A SIZE THAT WE'RE LOOKING AT $6 MILLION, YOU'RE LOOKING TO IMPACT PEOPLE IS WHERE YOU'RE GOING TO MAKE THOSE CUTS.
ACCORDING TO OUR CONTRACT LANGUAGE, WE HAVE TO NOTIFY IF WE'RE GOING TO MAKE THOSE CUTS.
WE HAVE TO DO THAT BY MAY 15TH FOR ALL CERTIFICATED.
SO ADMINISTRATORS AND TEACHING STAFF.
SO THE TIMING ON THIS IS REALLY CRUCIAL.
WE WOULD HOPE THAT ONCE YOU KIND OF INDICATE TO US WHAT YOUR SENSE IS IN TERMS OF USING FUND BALANCE, IF IT'S THAT 1%.
THAT WOULD THEN ENABLE US TO PINPOINT EXACTLY HOW MUCH CUTS WE HAVE TO MAKE, AND THEN WE HAVE IDENTIFIED A SERIES OF CUTS, AND THEN WE CAN GO ABOUT NOTIFYING PEOPLE THAT'S THE HARD PART ABOUT THIS, IS THAT THE LAST THING I WANT IS FOR SOMEBODY TO LEARN THAT THEIR JOB IS CUT WHILE WE'RE SITTING IN A MEETING HERE.
SO IN TERMS OF A TIMELINE SOON.
THANK YOU. SO IT'S YOUR THOUGHT, DENNY, THAT WE DON'T NEED TO CHANGE THE POLICY, EVEN THOUGH IT SAYS THAT AT THE CLOSE OF THE BUDGET YEAR, THE UNASSIGNED FUND BALANCE ACCOUNT SHALL SHALL ACCOUNT FOR 6% AND I SAY THAT, MARY, ONLY BECAUSE THAT'S THE WAY AS AS YOU NOTED.
THAT'S THE WAY EVERYBODY WRITES IT, I KNOW.
YES, AND THIS POLICY HAS BEEN IN PLACE FOR US SINCE MAY 22ND, 2017, AND NEVER DID WE REACH THAT 6% OF FUND BALANCE UNTIL 2021.
SO, SO IN PREVIOUS PREVIOUS TO THAT, WERE YOU ABLE TO MAINTAIN YOUR 3%? NO, WE WEREN'T, WHICH IS ONE OF THE REASONS WE JUST HAD GOTTEN UP TO 3%.
I THINK IT WAS I THINK WE WERE AT SOMEWHERE RIGHT AROUND 3.5% WHEN WE VOTED TO MOVE IT UP TO SIX.
YES, IT WAS VERY IT WAS VERY AMBITIOUS.
WELL, BECAUSE I GUESS MY THINKING IS WHY DOESN'T IT STATE IT AS A GOAL? BECAUSE I UNDERSTAND THAT, YES, THAT'S REALLY TYPICALLY HOW SCHOOL DISTRICTS LOOK AT IT.
IT'S A GOAL, BUT I JUST WONDER WHY THE POLICY.
YEAH, AND I ACTUALLY, AFTER LOOKING AT IT ONCE WE REACHED THERE AND NOW WE'RE LOOKING AT PERHAPS GOING BACK A LITTLE BIT, I WOULD AGREE WITH YOU WHOLEHEARTEDLY. I BELIEVE IT'S STATED IN THE I BELIEVE IT'S STATED IN THE PROCEDURE.
RIGHT? IS WHERE THAT'S STATED.
I THINK IT'S SEATTLE SCHOOL DISTRICT THAT'S LIKE 3 TO 5%.
SEATTLE'S ACTUALLY HAVE A DO I HAVE IT PULLED UP? NO, I HAVE IT, BUT IT IS SEATTLE AND SPOKANE USE A RANGE ON THEIR POLICIES, AND IT IS I LIKE A RANGE.
YEAH. SPOKANE IS 5 TO 6% AND SEATTLE IS 3 TO 5%, AND THEN JUST FOR THERE'S TWO SCHOOL DISTRICTS IN CLARK COUNTY THAT DON'T HAVE POLICY 60 22 AT ALL.
SO THEY DON'T HAVE THEY DON'T HAVE ANY FUND BALANCE, AND THEN JUST FOR THE VARIETY OF HOW THESE POLICIES GO GREEN MOUNTAIN SCHOOL DISTRICT DOESN'T HAVE A PERCENTAGE, BUT INSTEAD THEY USE 60 DAYS OF EXPENDITURES.
OKAY. SO IN THIS REALM, BECAUSE OF HOW HIGH, I GUESS, IN MY RESEARCH OF HOW HIGH OUR EXPENDITURES HAVE RISEN WITH JUST THE INFLATION AND THE COST WE DON'T HAVE 30 DAYS.
OUR 6% DOES NOT COVER 30 DAYS WORTH OF EXPENDITURES.
SO MAYBE IT'S 30, MAYBE IT'S 29, MAYBE IT'S 31.
[00:30:10]
MEET A 45 DAY MARK, IN MY OPINION AND MICHELLE'S AGREEING BY SHAKING HER HEAD, NO.SO THANK YOU. I AM OPEN, THOUGH.
IF WE WERE TO MOVE FORWARD WITH WHATEVER DIRECTION WE MOVE FORWARD, THAT IF WE WANTED TO MAKE CHANGES TO THE FUND BALANCE POLICY OR PROCEDURE, THAT WE OPEN THAT UP FOR DISCUSSION.
OKAY. DEBBIE, YOU WANT TO TAKE A TURN OR SHALL I GO RIGHT AHEAD? SO I APPRECIATE ALL OF THAT.
THAT WAS REALLY GOOD. SO SO THIS WHOLE BUSINESS OF HOW WE'VE PURSUED THIS, OBVIOUSLY, IF WE DIDN'T GET TO 6%, YOU DIDN'T GET TAKEN OUT BACK BEHIND THE SHACK WITH THE STRAP OR ANYTHING.
I MEAN, RIGHT, RIGHT. YOU KNOW.
SO AND OBVIOUSLY THINGS CHANGE WHICH ARE A LOT OF THINGS THAT ARE LIKE, I'M, YOU KNOW, LIKE FUEL COSTS AND FOOD COSTS AND ALL THESE EXTRA COSTS.
CERTAINLY [INAUDIBLE]. SO OUR FOLKS ARE GOING TO BE LIKE, I CAN'T SEE MISS SCOTT, LIKE RUNNING OUT OF THE OFFICE, DOWN THE HALL SCREAMING, YOU KNOW, DENNY DENNY, OH, NO! WE JUST WROTE A CHECK AND IT TOOK US OFF OF THE BUDGET, YOU KNOW, OR WHATEVER.
YOU KNOW, IT'S JUST GOING TO BE WHAT IT IS KIND OF A THING, YOU KNOW, AND SO THIS WHOLE IDEA THAT IT'S A GOAL TO ME SEEMS LIKE ALSO IT WOULD STILL BE THE SAME PROBLEM.
YOU DIDN'T REACH THE GOAL THIS YEAR.
WHY NOT? YOU KNOW, YOU KNOW, IT'S STILL, AND SO I IMAGINE THERE MUST HAVE BEEN CONVERSATIONS ABOUT THIS EVERY YEAR AT THE END OF THE YEAR, HOW ARE WE DOING IT? AND WE'RE PROGRESSING THAT WAY, YOU KNOW, BUT THINGS ARE ALWAYS GOING TO CHANGE EVERY YEAR.
YEAH, I NOTICED ONE OF THESE IS ACTS OF GOD, AND I'LL BE WORKING ON THAT ONE, TRYING TO INTERCEDE ON THAT AND MAKE SURE THAT DOESN'T GET US, BUT IT IS POSSIBLE THAT SOMETHING COULD GET US, AND THEN HERE WE ARE, AND SO WHAT DO WE SAY? OH, WE'RE GOING TO WE'RE GOING TO HOLD DENNY RESPONSIBLE, YOU KNOW, BECAUSE WE DON'T HAVE THE 6% IN THE BUDGET ANYMORE.
SO OBVIOUSLY THERE'S LIKE SOME KIND OF FLEXIBILITY IN THIS WHOLE THING ALL ALONG.
THAT IS ALMOST LIKE A MOOT POINT.
YOU KNOW, WE DO THE BEST WE CAN.
WELL, I DO THINK THAT THE I LOOK TOWARDS OUR FUND BALANCE AS A SAVINGS ACCOUNT AND ANY OF US WHO HAVE JUGGLED HOUSEHOLD INCOME KNOWS THAT JUST SOMETIMES CIRCUMSTANCES COME UP THAT MAKE IT MORE DIFFICULT TO STAY WITHIN OUR BUDGET.
RIGHT. I LOOK AT THAT AS THIS IS A SIMILAR SITUATION, OBVIOUSLY 100 FOLD MORE COMPLEX AND COMPLICATED, BUT I THINK THAT WE HAVE DONE AN OUTSTANDING JOB.
I THINK WE SHOULD PAT OURSELVES ON THE BACK FOR REACHING THAT 6% AND HAVING A HEALTHY FUND BALANCE.
I ALSO THINK THAT THERE SINCE WE'VE DONE THIS, SINCE WE STARTED THIS PROCESS, AND I'VE BEEN AROUND NOW IN EITHER THE DEPUTY ROLE OR THE SUPERINTENDENT ROLE NOW FOR SEVEN YEARS, THERE WAS ALWAYS THE IDEA THAT THERE WOULD COME A TIME, FOR WHATEVER THE REASONS WERE, AS OUTLINED ON THE POLICY, THAT WE WOULD CONSIDER ACCESSING THE FUND BALANCE.
IT WAS NEVER MEANT TO BE UNTOUCHABLE.
THAT'S WHAT IT'S THERE FOR, RIGHT? YEAH, AND SO IT'S WITH THAT.
IT'S A FACT THAT WE HAD THIS EMERGENCY.
WHAT DO YOU THINK? YOU KNOW, AND WE ALL TALK ABOUT IT.
YEAH, I THINK AT THE END OF THE YEAR, JUST IN TERMS OF OUR PRIORITY, IF THERE IS MONEY THAT'S LEFT OVER THAT OUR PRIORITY IS THAT WE RETURN IT TO THE FUND BALANCE SO THAT WE CAN STABILIZE IT.
RIGHT. I DO THINK JUST TO SHARE, HISTORICALLY THIS DISTRICT HAS SEEN ITS MANY YEARS OF UP AND DOWN BUDGETS.
YES. DOUBLE LEVY FAILURES CAME UP EARLIER TODAY.
WE TALKED ABOUT EXACTLY WHAT YOU WERE TALKING ABOUT.
HOW DO WE IF OUR LEVY DIDN'T PASS A FEW YEARS AGO, HOW WOULD WE REPLACE $30 MILLION? AND THIS WAS DEFINITELY PART OF THE DISCUSSION.
WE HAVE LEVY COMING UP NEXT YEAR.
SOMETHING TO CONSIDER IF THAT SHOULDN'T PASS, BUT AGAIN.
[00:35:01]
WE NEED TO DEAL WITH THE BUDGET NOW VERSUS HOLDING OUT FOR WHAT COULD HAPPEN AND DENNY AND I WILL JUST SAY LENGTHY, NOT HEATED, BUT INTENSE DISCUSSIONS ABOUT WHAT WAS CHARGED, WHAT MONEY SHOULD BE HELD FOR.I LOOK AT IT AS AN EMERGENCY FUND, NOT A SAVINGS ACCOUNT.
SO JUST A LITTLE BIT DIFFERENT OF A VIEW.
JUST IT JUST DEPENDS ON WHAT YOU USE IT FOR.
SO WHERE WE ENDED ON THAT, AND I THINK, I HOPE WE COULD ALL AGREE ON IS THAT WE HAVE TO LIVE WITHIN OUR MEANS, AND I THINK THAT THE CUTS YOU'RE PROPOSING HELP US TO DO THAT.
YEAH. I THINK IT'S VERY IMPORTANT TO NOTE THAT I KNOW THAT WE WILL HEAR FROM INDIVIDUALS WHO SAY, WELL, WHY AREN'T YOU USING MORE OF THE FUND BALANCE? WHY NOT TAKE IT DOWN TO FOUR? WHY NOT TAKE IT DOWN TO THREE? I THINK PART OF OUR THINKING IS THAT IF WE TAKE IT DOWN ANY FURTHER, WE ALSO HAVE A PRECARIOUS SITUATION. NEXT YEAR, AS YOU POINTED OUT, WE HAVE TO PASS A LEVY, AND ALSO WE HAVE TO COUNT ON GETTING SOME HELP FROM THE LEGISLATURE TO MEET SOME OF OUR INFLATION COSTS, AND, MARY, YOUR REACTION THERE IS EXACTLY MY REACTION.
I DON'T KNOW, RIGHT? I DON'T KNOW THAT WE CAN COUNT ON THAT.
[INAUDIBLE]. ALSO, THE LAST THING WE WANT TO DO IS THAT IF WE HAVE 6.2 MILLION THIS YEAR AND EVERYTHING STAYS, STATUS QUO MEANS WE HAVE TO USE 6.2 MILLION NEXT YEAR, 6.2 MILLION IS A EQUIVALENT TO ALMOST 3% OF OUR FUND BALANCE.
SO WE'D BE GOING FROM FIVE, YOU KNOW, NEXT YEAR ALL THE WAY DOWN TO, YOU KNOW, 2 OR 3.
IF WE ONLY USE 1% THIS YEAR, IT'S A MORE PRUDENT.
SO TO JACKIE'S POINT, IT SHOWS THAT WE ARE TRIMMING BECAUSE WE KNOW THAT IT'S NOT SUSTAINABLE, BUT WE'RE DOING SO IN A WAY WHERE WE'RE HEDGING OUR BETS AND LOOKING TO SEE IF WE CAN FIND SOME ALTERNATE FORMS OF FUNDING THAT MIGHT HELP US GET THROUGH THIS, AND THAT WE CAN MINIMIZE THE IMMEDIATE IMPACT TO STUDENTS AND STAFF SO THAT THEY DON'T FEEL LIKE WE'RE CUTTING THINGS THAT ARE REALLY GOING TO HURT THEM IN THE LONG RUN.
SO I CAN'T BELIEVE I'M GOING TO ASK THIS QUESTION CONSIDERING MY BACKGROUND, BUT WHAT IS OUR ASSIGNED RESERVE FOR CURRICULUM? OUR ASSIGNED RESERVE FOR CURRICULUM IS GOING TO BE GONE AFTER THIS YEAR, EXCEPT FOR PREPAIDS.
YEAH, WE DO HAVE SOME SET ASIDE FOR OUR ONGOING CURRICULUM, BUT WE DID NOT BUDGET FOR ANY NEW ADOPTIONS WITH THE 24-25 AND THE ASSIGNED DOES INCLUDE BUILDING CARRYOVER FUNDS, DONATION CARRYOVER.
SO THERE'S QUITE A FEW THINGS IN THERE THAT ARE REALLY SPECIFICALLY EARMARKED AND ASSIGNED.
NO, OF COURSE NOT BUT IN THE SHORT [INAUDIBLE] WE DO THINK THAT NEXT YEAR THERE'S WELL, IT'S NOT GOOD FOR US NOT TO HAVE THAT MONEY SET ASIDE. WE DO FEEL LIKE OUR TEACHERS ARE A LITTLE BIT BURNT OUT AND OVERWHELMED WITH THE LEVEL OF CURRICULUM ADOPTIONS.
WE'VE DONE THAT, AND WE'RE HAVING ANOTHER BIG ONE THIS YEAR, AND IT'S NOT A BAD THING FOR US TO, YOU KNOW, TAKE A DEEP BREATH AND LET EVERYBODY CATCH UP A LITTLE BEFORE WE HEAD BACK INTO OUR CYCLE.
JUST I YEAH. THE QUESTION WAS REALLY WHERE ARE WE IN THE CYCLE AND WHAT [INAUDIBLE].
YEAH. SO, I MEAN, JUST FOR CLARIFICATION, YOU'RE LOOKING AT 8.5 MILLION IN CUTS, BUT USING THE FUND BALANCE COULD GIVE IT IT COULD REDUCE THAT TO 6.2.
YEAH, 1% IS ABOUT $2.3 MILLION, AND WE WOULD HAVE A IF YOU GIVE US THAT INFORMATION AT THE NEXT BOARD MEETING, WE WOULD BE ABLE TO PROVIDE YOU WITH THE DETAILS OF WHAT OUR PROPOSAL IS, AND THEN OBVIOUSLY, IF YOU DIDN'T LIKE SOMETHING THAT WAS ON THE LIST, WE COULD DISCUSS.
[00:40:04]
SO YOU'RE NOT LOOKING FOR A CONSENSUS TONIGHT? JUST AN INDICATION THAT YOU'RE OKAY WITH US ACCESSING THE FUND BALANCE.[INAUDIBLE] WOULD BE A PROPOSAL ON ACCESSING THE FUND BALANCE.
WELL, THIS IS A WORK SESSION, SO THERE'S NOT REALLY A VOTE THAT NEEDS TO TAKE PLACE.
SO I MEAN YEAH. [INAUDIBLE] I GUESS I WOULD SAY THAT IF THERE WERE ANY SERIOUS CONCERNS ABOUT USING IT, THAT THOSE WERE VOICED HERE.
OKAY. I WAS ACTUALLY JUST CURIOUS WHAT OUR STUDENTS THINK ABOUT ALL OF THIS AND.
YEAH. WELL, OKAY, BEING A STUDENT, I WILL SAY, AND SORA WILL PROBABLY AGREE THAT THE BUDGET IS KIND OF HARD TO GRASP A LOT OF THE TIME, BUT I WILL SAY, LIKE, I REMEMBER I FEEL LIKE A COUPLE BOARD MEETINGS AGO, WE WERE TALKING ABOUT $4 MILLION IN CUTS, IF I'M CORRECT.
IS THAT DID I EVER COME UP 4 MILLION? OR LIKE, WE WERE TRYING TO MAKE IT AS LOW AS I THINK WE WERE SAYING THAT THE LOW COULD POTENTIALLY BE FOUR ON THE HIGH END, HIGH COULD BE EIGHT, AND SO WHERE WE'RE SETTLING IS KIND OF LIKE RIGHT IN THE MIDDLE HERE.
YEAH, AND I KIND OF REALLY AGREE WITH BOTH JACKIE AND DENNY'S POINT OF LIKE THE FUND BALANCE BEING KIND OF LIKE I SEE IT KIND OF IN THE MIDDLE OF AN EMERGENCY SAVINGS ACCOUNT. SO LIKE IT IS YOU ARE SAVING MONEY, BUT ALSO IT'S LIKE I PERSONALLY WOULD ONLY USE IT IN AN EMERGENCY AND I WOULD CONSIDER THIS AN EMERGENCY BECAUSE I THINK ESPECIALLY WITH ALL OF THE SORRY GUYS, I FORGOT THE WORD DEVELOPMENT.
LIKE WITH ALL OUR DEVELOPMENT INTO LIKE PLCS AND ALL THAT WORK, WHICH I KNOW KIND OF CUTS INTO, I BELIEVE THAT'S A LOT OF THE TEACHING ACTIVITIES ALONG WITH LIKE OTHER JOBS, BUT I KNOW A LOT OF THAT IS CONSIDERING CONSIDERED LIKE ROLES, BUT THAT'S NOT MY POINT.
LIKE, I PERSONALLY THINK THAT A LOT OF THAT'S REALLY IMPORTANT, AND I ALSO THINK A LOT OF THIS IS IMPORTANT, AND SO I KIND OF HATE, YOU KNOW, HAVING TO CUT ALL OF IT KIND OF MAKES ME SAD, BUT I DO THINK IN THIS SITUATION, IN MY PERSONAL OPINION, I THINK IT'S REALLY IMPORTANT TO ACCESS THE FUND BALANCE.
LIKE I THINK THIS IS THE TIME TO USE IT.
NOT ALL OF IT, THOUGH, YOU KNOW? I MEAN, I THINK IT'S ONE OF THOSE THINGS WHERE IT'S KIND OF LIKE, OKAY, USE WHAT WE BECAUSE THIS FOUR YEARS, FOUR YEAR FISCAL CLIFF OR DO YOU THINK IT'S GONNA BE LIKE LONGER? THAT'S A REALLY GOOD QUESTION.
[CHUCKLING] I WOULD LIKE IT TO BE SHORTER.
I THINK IT IS, MUCH OF IT IS DEPENDENT ON WHAT THE LEGISLATURE DOES.
I DO THINK, THOUGH, AS WE TALKED ABOUT WE HAD WE LOST A TOTAL OF $7.2 MILLION IN ESSER FUNDS AND WE'RE CUTTING 6.2.
SO THAT'S THE THAT WAS THE STEEPEST.
THAT'S THE STEEPEST PART OF OUR CLIFF.
IF YOU TAKE OUT THE INFLATIONARY FACTORS THAT ARE DRIVING A LOT OF THIS, EVEN WITHOUT WHAT WE'VE BEEN THROUGH WE WOULD BE STRUGGLING JUST GIVEN THE INFLATIONARY FACTORS BUT WE CERTAINLY HAVE MINIMIZED THE ESSER PART OF IT.
WELL, AND THE TITLE ONE AND THE TITLE AND TITLE ONE TOGETHER.
YES, AND THAT WAS JUST TOTALLY UNEXPECTED, AND YOU KNOW, IF IT WASN'T FOR THAT ONE YOU KNOW, WE'D BE IN A DIFFERENT PLACE AS WELL, AND SOME OF THOSE TITLE I JUST WANT I HOPE YOU ALL RECOGNIZE IT WOULD BE SIMPLE FOR US TO JUST ASSUME THAT, WELL, SINCE WE LOST $1.2 MILLION WORTH OF TITLE SERVICES, THEN I GUESS WE JUST DON'T HAVE THOSE SERVICES ANYMORE. THE TITLE SERVICES MEANS SO MUCH TO OUR STRUGGLING READERS THAT IT IS DIFFICULT FOR US TO CONTINUE WITHOUT ANY OF THOSE SERVICES.
SO WHILE I AGREE THAT WITH THE LOSS OF TITLE FUNDS, IT'S GOING TO IMPACT THE TITLE SERVICES.
WE CAN'T PICK ALL OF THOSE UP.
THERE'S JUST SOME OF THOSE THINGS THAT WE CAN'T LIVE WITHOUT.
IT IS DIFFICULT BECAUSE A LOT OF WHAT WE'VE IDENTIFIED AS YOU SAW, THAT PIE CHART IS TEACHING SUPPORT, AND WHEN YOU PUT SUPPORT IN PLACE FOR TEACHERS, IT'S USUALLY FOR THEIR STRUGGLING LEARNERS.
SO WHEN YOU TALK ABOUT MAKING CUTS THAT IMPACT STRUGGLING LEARNERS, THAT'S A REALLY TOUGH DECISION, AND WHY I THINK IF WE COULD ACCESS 1%, WE CAN MINIMIZE THAT WHEN WE LOOK AT WHAT CUTS HAVE BEEN IDENTIFIED, AND THAT, TO ME IS WHAT MAKES IT AN IMPORTANT DECISION, IS THAT IT'S THIS GROUP OF LEARNERS AND EVEN A YEAR WORTH OF TIME TO SAVE THOSE.
[00:45:02]
SOME OF THOSE PROGRAM NEEDS IS WELL WORTH IT, EVEN IF WE CAN ONLY DO IT FOR ONE MORE YEAR.I IT'S HARD TO SAY BECAUSE WE DON'T KNOW WHAT THE LEGISLATURE WILL DO, BUT IT'S HARD FOR ME TO IMAGINE THAT THERE WON'T BE SOME RESPONSE FROM THE LEGISLATURE WHEN OUR MSOCS HAVE TAKEN IN 9.1% OVER THE LAST THREE YEARS, BUT OUR COSTS HAVE GONE UP OVER 40%.
IT'S DIFFICULT FOR ME TO IMAGINE THAT THEY CAN IGNORE THAT FOR TOO MUCH LONGER.
I CAN'T IMAGINE THAT THEY CAN LEAVE THAT ALONE, ESPECIALLY WHEN THERE'S DISTRICTS THAT ARE STRUGGLING WAY MORE THAN WE ARE, AND THAT'S GOING TO BECOME CLEAR ALL THROUGHOUT THIS SPRING.
SO IN YOUR OPINION, DO YOU THINK TITLE ONE WILL BE RESTORED AT ANY POINT? I DON'T KNOW, I MEAN, I KNOW THAT I DON'T THINK THE STRUCTURE PROVIDES.
I WISH I COULD ANSWER THAT QUESTION, BUT, YOU KNOW, [INAUDIBLE] HAS DONE HER DUE DILIGENCE IN TRYING TO FIND OUT HOW THOSE FIGURES ARE CALCULATED, AND WE CAN'T EVEN GET A STRAIGHT ANSWER.
WE WOULD LIKE TO THINK THAT IN A YEAR OR TWO THEY THEY PLAY WITH THE NUMBERS, BUT THEN WE ALSO THINK, WELL, IT'S BASED ON A CENSUS AND THE NEXT CENSUS IS NOT UNTIL 2030.
I KNOW, AND THAT'S WHAT DOESN'T MAKE SENSE TO ME.
RIGHT? SO I MEAN, I KNOW THAT'S THE CASE AND WE HAVE PURSUED THIS POINT WITH DILIGENCE.
YEAH. IN TERMS OF PHONE CALLS.
TALK TO YOUR TITLE ONE DIRECTOR.
YES. SHE CAN HELP YOU? YES. YEAH.
I KNOW WE'RE CLOSE TO BEING AT AN END HERE.
AS I SAID, IF I WERE TO HEAR NO STRONG OBJECTIONS TO MOVING FORWARD WITH 1%, I WOULD TAKE THAT AS AN INDICATION THAT WE'RE OKAY.
AT THE SAME TIME, I AM GOING TO DO MY DUE DILIGENCE AND FOLLOW UP WITH OUR ATTORNEY TO TAKE A LOOK AT OUR BOARD POLICY AROUND FUND BALANCE AND SEE WHAT HER RECOMMENDATION IS.
IF THE RECOMMENDATION IS TO BRING IT BACK TO THE BOARD, EITHER FOR A FULL VOTE ON A PROPOSAL OR TO MODIFY OUR FUND BALANCE, THEN WE WILL HAVE SOMETHING READY FOR THE NEXT MEETING.
AS I SAID, WE'RE NOT WE'RE WAY DOWN THE LINE FROM PRESENTING OUR BUDGET TO YOU.
SO I FEEL LIKE WE'RE IN SAFE HARBOR BECAUSE WE'RE NOT ACTUALLY FORMALIZING OUR BUDGET AT THIS POINT.
SO WE HAVE TIME FOR THAT, BUT I PROMISE THE BOARD THAT I WILL FOLLOW UP ON THAT TO MAKE SURE THAT WE'RE DOING EVERYTHING BY THE LETTER OF THE LAW, I'D LIKE TO MAKE SURE IF SORA HAD SOMETHING TO ADD, THAT SHE HAD AN OPPORTUNITY.
I'M SORRY. ADD IT. SORRY, SORA.
I WAS JUST WANTING TO AGREE WITH JULIA IN THAT I THINK THAT IF GOING INTO THE FUND BALANCE IS NECESSARY TO, LIKE, REDUCE ANY REDUCTIONS THAT ARE GOING TO BE NECESSARY TO MAKE, I THINK AS A STUDENT, LIKE I, ALL THE PROGRAMS THAT I TAKE PART IN AT MY SCHOOL ARE EQUALLY IMPORTANT TO ME, AND I THINK THAT, LIKE ANYTHING THAT I COULD PLAY A PART IN, LIKE PREVENTING THE LOSS OF, I WANT TO, YOU KNOW, VOICE MY OPINION ON.
SO YEAH, I THINK IT'S A GOOD IDEA.
I APOLOGIZE FOR--NO, YOU'RE OKAY.
IT'S OKAY. WE GET TAKEN DIFFERENT DIRECTIONS, AND DEBBIE, DID YOU HAVE ANY QUESTIONS? NO, I'M JUST TRYING TO TAKE IT ALL IN.
WAIT TILL AUGUST WHEN WE GET TO DO THE BUDGET.
IT'S SUPER EXCITING, AND THE ONLY THING I WOULD SAY IS I MEAN, I'M FOR THE KIDS.
SO THAT'S WHERE I'M REALLY AT.
SO BUT THEN I ALSO GET CONCERNED ABOUT OUR PUBLIC YOU KNOW, THEY ALWAYS ARE CONCERNED ABOUT WHERE THEIR MONEY'S GOING. SO THAT'S THE OTHER CONCERN.
WELL, AND THAT'S TO THAT POINT, I'VE STRUGGLED WITH THAT ABOUT THE IDEA OF THE MONEY BEING USED BECAUSE IT CREATES PUTS US IN A GOOD FINANCIAL SITUATION AND THE IDEA OF MONEY JUST SITTING THERE, NOT BEING USED WHEN IT COULD BE USED TO FACILITATE EXTRA PROGRAMING FOR KIDS. SO IT'S FINDING THAT BALANCE IN THERE THAT IS PROVING TO BE MOST DIFFICULT, AND THEN THE OTHER THOUGHT THAT I WAS WONDERING ABOUT WAS LIKE FOR FUTURE YEARS, IF WE DO THIS, IF THIS IS HAPPENS, SO THEN DOES THAT MEAN AREN'T YOU GOING TO ARE WE GOING TO STILL BE IN THE HOLE.
[00:50:05]
IS THIS GOING TO BE A CONTINUUM.SO, YOU KNOW, DIGGING IT DEEPER AND DEEPER AND THEN, YOU KNOW, THERE'S GOING TO BE THIS DESIRE TO TOUCH THE SAVINGS AS THEY PUT IT, IT'S GOING TO STILL BE THERE AND IT'S STILL GOING TO BE THERE'S GOING TO BE PROBABLY A DESIRE TO USE IT SO THAT WE, AGAIN, HELP STUDENTS AND THEY DON'T MISS OUT ON THE THINGS THAT THEY'RE ENJOYING TO AND NEEDING, AND I WOULD SAY THAT'S ONE OF THE CHALLENGES THAT WE HAVE IN IN OUR PLANNING AS AN ADMINISTRATIVE TEAM.
CERTAINLY ONE OF THE THINGS WE'RE LOOKING TO DO IS HOW CAN WE INCREASE ENROLLMENT.
SO THERE IS ALWAYS THE OFFSET WITH BUDGETS.
OUR BIGGEST AMOUNT OF MONEY THAT WE GET COMES FROM ENROLLMENT.
SO WE KNOW THAT THERE ARE PROGRAMS THAT CONTINUE TO GROW.
IF WE CAN FIND OPTIONS TO GET THOSE TO GROW, THAT OFFSETS SOME OF OUR FINANCIAL STRUGGLES AS WELL.
SO WE'RE CERTAINLY NOT JUST SAYING, OH, THIS IS THE BUDGET THAT WE'RE RELYING ON.
WE'RE ALSO TALKING ABOUT HOW COULD WE CREATE REVENUE.
BECAUSE THOSE ARE IMPORTANT DISCUSSIONS AS WELL.
[INAUDIBLE] INCREASE OUR ATTENDANCE, GET OUR KIDS INTO SCHOOL.
SORRY, I DIDN'T MEAN TO INTERRUPT.
NO, IT CERTAINLY GIVES US TIME.
WE KNOW THAT WHAT WE FOUND WITH THE ESSER DOLLARS IS WE WERE ABLE TO START PROGRAMS THAT MAY BE BETTER THAN SOME OF THE PROGRAMS WE ALREADY HAD IN PLACE.
SO THE ABILITY TO EVALUATE THOSE PROGRAMS AND DETERMINE, YOU KNOW, SOME OF THE THINGS THAT WE WILL BE ELIMINATED WILL NOT NECESSARILY ALL BE TIED INTO ESSER, BECAUSE SOME OF THE THINGS THAT WE DID WITH THE ESSER MONEY WAS REALLY GOOD, AND WE DON'T WANT TO SEE IT GO AWAY.
SO TRYING TO IDENTIFY WHERE THOSE OTHER COST SAVINGS ARE IS IS CRITICAL TO THIS, AND AS I SAID, THERE'S A LOT OF FACTORS IN PLAY NEXT YEAR THAT COULD MAKE NEXT YEAR'S OUTCOME VERY POSITIVE FOR US OR ANOTHER YEAR WHERE WE'RE ASKING TO MAKE MORE CUTS. I HAVE ONE LAST QUESTION.
SO AND TO ANSWER YOUR QUESTION DIRECTLY, I DON'T FEEL UNCOMFORTABLE WITH ANYTHING YOU'RE PROPOSING.
I THINK IT ALL SOUNDS VERY REASONABLE ON THE ON THE PERCENTAGE OF REDUCTION CHART.
IT SHOWS BUILDING ADMINISTRATION PERCENTAGE OF REDUCTION WOULD BE 4%, 3.8%.
YES, AND CENTRAL ADMINISTRATION WOULD BE 12.5%.
YES, AND YET THERE'S A REALLY BIG DIFFERENCE IN HOW MUCH YOU'RE CUTTING FROM ONE AND THE OTHER.
I REALIZE THERE'S PROBABLY A GOOD REASON I'D LIKE TO.
I WAS WONDERING IF YOU HAVE ANY SHED ANY LIGHT ON THAT? WHY? WELL, YEAH WITHOUT GETTING INTO ACTUAL POSITIONS, BECAUSE THOSE NUMBERS OF POSITIONS.
I WILL GIVE YOU AN EXAMPLE, BECAUSE I THINK I CAN GIVE YOU THIS EXAMPLE, CENTRAL OFFICE.
ONE OF THE POSITIONS THAT WE WOULD JUST NOT REPLACE IS A RETIREMENT THAT WE HAVE.
SO OUR DIRECTOR OF CIA, DAVE CRESAP, WE WOULD NOT REPLACE HIS POSITION.
SO THAT'S AN EXAMPLE I CAN GIVE YOU WITHOUT TALKING ABOUT PEOPLE THAT MAY OR MAY NOT KNOW THAT.
AGAIN, WE'RE TRYING TO MINIMIZE.
THE CUTS AS THEY RELATE TO STUDENTS, AND WHILE I THINK EVERYBODY AT DISTRICT OFFICE PLAYS A CRUCIAL ROLE THEY ARE THE FURTHEST AWAY FROM STUDENTS.
SO UNFORTUNATELY IT'S JUST THAT IT WILL IT ALWAYS IMPACTS EVERY GROUP, YOU KNOW NONE OF THESE CUTS ARE ARE EASY CUTS. RIGHT.
THANK YOU. COULD YOU CLARIFY JUST AND THIS IS JUST BECAUSE I DON'T KNOW, THE DIFFERENCE BETWEEN TEACHER ACTIVITY IS THE TEACHING SUPPORT LIKE THE PARA EDUCATORS AND THEN THE TEACHING ACTIVITIES ARE WHAT TEACHING SUPPORT CAN MANIFEST ITS WAY IN MANY DIFFERENT FORMS. I'LL GO AHEAD BECAUSE I JUST WANT TO GIVE YOU THE LIST.
SO TEACHING ACTIVITIES INCLUDES CLASSROOM TEACHERS AIDES, CLASSROOM SUPPLIES AND EXTRACURRICULAR TEACHING SUPPORT IS LIBRARY COUNSELORS, SECURITY, NURSING, PSYCHOLOGISTS, OTPTS, INSTRUCTIONAL PROFESSIONAL DEVELOPMENT AND LEARNING, AND INSTRUCTIONAL TECHNOLOGY AND CURRICULUM.
WHERE ARE THE PARAS? PARAS ARE IN THE TEACHING ACTIVITIES.
THEY'RE ACTUALLY IN THE ACTIVITIES.
YEAH. THEY'RE NOT IN THE. YEAH OKAY.
YEAH. SO AGAIN TRYING TO MINIMIZE THOSE.
[00:55:03]
YEAH. YEAH IT'S A BIG DEAL.THAT'S IT. SO JUST FOR A REMINDER, AS A BOARD, WE WOULDN'T DEFINE THAT.
WE WOULD GIVE THAT DIRECTION TO THE SUPERINTENDENT.
SO AND WE DON'T DEFINE THE POSITIONS.
I JUST WANT TO BE CLEAR ON THAT BECAUSE I DON'T I DOUBT DENNY AND SHELLY ARE LOOKING FOR ANY EXTRA HELP TO GO, WELL, WHAT ABOUT THIS? BECAUSE THEY'VE BEEN RACKING THEIR BRAINS WITH IT FOR A WHILE.
SO I WANT TO BE CLEAR ON THAT.
THIS IS NOT RIFFS OR REDUCTION IN FORCE.
THE FIRST YEAR I WAS ON THE BOARD, WE DID IT.
WE'RE NOT TRYING TO MESS WITH PEOPLE'S LIVES.
WE HAVE AN OPERATION TO RUN AND THAT'S OUR ROLE AS THE BOARD IN MY IT REALLY HELPED ME NOT TO CONTINUE TO GET PHYSICALLY ILL EVERY TIME WE HAD TO REF TEACHERS, BUT IT IS A BUSINESS AND WE DON'T HAVE CREDIT CARDS WE CAN ADD OUR DEBT TO, SO WE JUST HAVE TO BE CAREFUL THAT WE, IN MY OPINION, THAT WE JUST STAY WITHIN OUR MEANS AND DO WHAT IT TAKES TO KEEP AS MUCH AS WE CAN, BUT STILL BEING FISCALLY RESPONSIBLE, AND SO JUST SO THE BOARD KNOWS IF IT HELPS AND IT DOES, IT HELPS US. IT HELPS US, IT HELPS US TREMENDOUSLY IS THAT WE DO NOT WE DO NOT ANTICIPATE THE NEED FOR A REDUCTION IN FORCE RESOLUTION FOR THE BOARD, FROM THE BOARD.
THAT IS GOOD TO HEAR. THAT'S GREAT, AND SO I THINK IF I CAN JUST AGAIN REITERATE WHAT WE'RE WHAT YOU'RE LOOKING FOR TONIGHT IS FOR US TO I GUESS FOR YOU TO KNOW HOW WE FEEL ABOUT THIS AND WHETHER WE'RE POSITIVE ABOUT IT GOING FORWARD, BECAUSE WHEN WE GO THROUGH THE BUDGET PROCESS, THIS THIS IS GOING TO COME UP AGAIN, IT'LL COME UP AND HOPEFULLY WE HAVE ALREADY HAD THIS DISCUSSION.
I WAS HOPING I THINK I'VE ALREADY RECEIVED AN INDICATION THAT I SHOULD PRESS FORWARD WITH THE $6.2 MILLION, THAT WOULDN'T BE AN ISSUE BUT IN TERMS OF IF I FIND BY CONTACTING OUR ATTORNEYS THAT WE NEED TO HAVE A FORMALIZED VOTE, IT WOULD BE THE NEXT SESSION, BUT IF WE DON'T NEED A VOTE, I FEEL COMFORTABLE THAT I'VE GOT THE MAJORITY OF THE SUPPORT FROM THE BOARD TO MOVE FORWARD THIS WAY.
MAYBE 6% SHOULDN'T BE A HARD AND FAST NUMBER.
YEAH, I DO LIKE I DO LIKE THE RANGE.
YEAH, SO I KNOW THAT'S SOMETHING WE HAVE ROOM TO DISCUSS.
YEAH, AND IT WOULD BE A SIMPLE CHANGE TO THE POLICY I THINK.
YEAH, BUT NOT NEEDED TO MOVE THIS FORWARD.
YEAH. I WAS JUST LOOKING FOR ANY HARD AND FAST YOU KNOW.
I DON'T FEEL LIKE I THINK THE DISCUSSION WAS VERY POSITIVE.
IT PRESENTED PROS AND CONS, BUT I THINK THERE'S A GENERAL.
THE MATERIALS YOU PRESENTED TO US ARE VERY HELPFUL.
THANK YOU. VERY HELPFUL TO UNDERSTAND.
I'M DONE. ANY OTHER QUESTIONS.
HEARING NONE. WE'LL ADJOURN THIS WORK SESSION AT 5:29.
THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.