>> TOMORROW WE ARE STARTING. [LAUGHTER]
[1. Call to Order]
[00:00:06]
>> WE ARE HERE ON AUGUST 12TH WITH THE BATTLEGROUND PUBLIC SCHOOLS 24-25 BUDGET BOARD WORK SESSION. MICHELLE SCOTT.
>> THANK YOU, BOARD. CAN YOU HEAR ME OKAY?
[2. Work Session]
YES, WE ARE HERE TONIGHT, AS JACKIE SAID, THE 24-25 PRELIMINARY BUDGET WORKSHOP.
THIS WILL BE FOLLOWED UP WITH A PRESENTATION AT THE NEXT BOARD MEETING AS WELL AS THE ADOPTION OF THE BUDGET.
I'D LIKE TO INTRODUCE CINDY CLEMS. SHE'S IN THE BUSINESS OFFICE.
SHE HAS THE LEAD FISCAL ACCOUNTANT FOR THE DISTRICT.
WE WORK VERY CLOSELY TOGETHER TO PUT THIS BUDGET TOGETHER.
REALLY, SHE'S JUST THE RIGHT HAND HERE.
SHE REALLY HELPS WORK WITH THE DEPARTMENTS, THE BUILDINGS, ASP.
THERE'S A LOT THAT GOES INTO A BUDGET.
WE START IN JANUARY, AND WE ARE JUST WORKING AND WORKING AND WORKING FOR MONTHS ON PUTTING BUDGETS TOGETHER BECAUSE IT'S SUCH A LARGE BUDGET, AS YOU'LL SEE AS WE GO THROUGH IT.
INCLUDED IN THE BOARD DOCS ONLINE IS THIS PRESENTATION, AS WELL OUR WORKSHOP HANDOUT, I SHOULD SAY, AND SO IT'S ACTUAL POWERPOINT PRESENTATION.
WE WON'T HAVE ANYTHING UP ON THE SCREEN.
BUT THERE'S ALSO THE F-195 BUDGET SUMMARY DOCUMENT THAT'S PROPOSED FOR BOARD'S CONSIDERATION, AS WELL AS THE FOUR YEAR FORECAST DOCUMENT AS WELL.
THEN IN THE NEXT MEETING, WE ALSO HAVE THE ENTIRE BUDGET DOCUMENT, WHICH IS SEVERAL HUNDRED PAGES LONG.
BUT I DIDN'T WANT TO OVERWHELM YOU WITH THAT TONIGHT.
AS I SAID, MONTHS OF PUTTING TOGETHER THE BUDGET, THERE'S ENROLLMENT, THERE'S STAFFING, REVENUES, THERE'S LEGISLATIVE ACTION GOING ON.
THERE'S ALL KINDS OF THINGS THAT ARE HAPPENING.
WE'RE STARTING TO DEVELOP, WHAT IS THE NEEDS FOR LIKE I SAID, FOR STAFFING AND FOR STUDENTS AND CURRICULUM AND TEACHING AND LEARNING, ALL DIFFERENT DEPARTMENTS, GRANTS, BILINGUAL PROGRAMS. THIS IS GOING TO GIVE YOU A HIGH LEVEL OVERVIEW OF IT.
THERE'S NOT A LOT OF DETAILS HERE, BUT WE CAN TAKE AND COLLECT YOUR QUESTIONS IF WE CAN'T ANSWER THEM RIGHT HERE.
PRIOR TO THE ADOPTION, WE CAN RESPOND TO ANY QUESTIONS.
THERE'S A LOT OF MOVING PIECES.
I'M JUST GOING TO TRY AND BREAK IT DOWN AS SIMPLY AS I CAN TO TRY TO GIVE YOU AN OVERVIEW OF IT, AND THEN WE CAN TAKE QUESTIONS AS WE GO ALONG.
I'LL START WITH THE EXECUTIVE SUMMARY.
I THINK THAT THAT'S A GOOD SPOT, JUST A QUICK OVERVIEW THAT WE HAVE FOUR TYPES OF FUNDS THAT MAKE UP OUR BUDGET.
WE HAVE THE GENERAL FUND, WHICH IS TEACHING ACTIVITIES AND SUPPORT, AND EXTRACURRICULAR, AND BUILDING SUPPORT, AND DISTRICT WIDE SUPPORT.
WE HAVE OUR ASP FUND, WHICH IS ATHLETICS, STUDENT LED CLUBS, AND EXTRA CURRICULAR ACTIVITIES AS WELL IS INCLUDED IN THAT ONE? THEN WE HAVE OUR CAPITAL PROJECTS FUND.
THAT'S WHERE WE DO OUR MAJOR REPAIRS, OUR CAPITAL REPAIRS, WE PURCHASE AND ACQUISITION OF FACILITIES AND CLASSROOM MODULARS AND PROPERTY, THAT THAT GOES IN THE CAPITAL PROJECTS FUND.
THEN WE HAVE OUR DEBT SERVICE FUND, WHICH IS ANY BONDS THAT WE HAD ISSUED, THE PAYMENTS GO THROUGH THE DEBT SERVICE FUND.
WHEN WE DEVELOPED THIS BUDGET, WE DID HAVE THREE MAJOR CHALLENGES IN DEVELOPING IT.
ACTUALLY, WE HAVE A LOT MORE CHALLENGES THAN THAT, BUT I'M GOING TO STICK WITH THOSE TOP THREE, THE MAJOR ONES. [OVERLAPPING]
>> BEFORE YOU GET STARTED, CAN I JUST INTERRUPT FOR JUST A SECOND.
FOR OUR STUDENTS AND OUR NEWER BOARD MEMBERS, SHE IS, IT'S ONLINE AS WELL, BUT SHE IS IN THIS DOCUMENT ON PAGE 1.
YOU SHOULD ALL HAVE A COPY OF THIS ON YOUR DESK, YOUR TABLE.
IF IT'S EASIER TO FOLLOW BY PAPER. YEAH.
>> TERRY, WERE YOU ABLE TO FIND IT ONLINE?
>> YES. I THINK SO. I'M LOOK AT SOMETHING.
>> SOMETIMES IT'S EASIER TO HAVE THE HANDOUT.
THANK YOU FOR PROVIDING THOSE.
ONE OF THE MAJOR ONES, AND A LOT OF SCHOOL DISTRICTS HAVE EXPERIENCED THIS,
[00:05:02]
AND THAT'S WHY YOU HEARD IN THE NEWS THAT THIS IS A MAJOR CHALLENGE ACROSS THE STATE OF WASHINGTON AND ACROSS THE NATION IS ENROLLMENT HAS NOT RETURNED FROM PRE PANDEMIC LEVELS.WE ARE STILL DOWN ABOUT 291 FTE FROM PRE PANDEMIC.
HOWEVER, OUR ENROLLMENT IS GROWING, WHICH IS THE GOOD NEWS AND DEMOGRAPHER AND WE'RE GOING TO GO THROUGH THAT ACTUALLY SHOWS MORE GROWTH NOT NEXT YEAR, BUT THE FOLLOWING THE OUT YEARS.
THAT WAS PART OF THE DEMOGRAPHY REPORTS THAT WE'VE ALREADY PROVIDED.
THE LOSS OF 291 FTE AND STUDENTS IS EQUIVALENT TO ABOUT 3.1 MILLION DOLLAR THAT WE DON'T HAVE THAT FUNDING FOR TO HELP BECAUSE WITH THE FUNDING OF STUDENTS COMES NOT ONLY FUNDING FOR TEACHERS AND FOR LIBRARIANS AND COUNSELORS, BUT ALSO FOR OUR OVERHEAD UTILITIES AND INSURANCE, AND THINGS LIKE THAT.
THAT RESTRICTS SOME OF THAT, HELP WITH SOME OF THAT OVERHEAD.
>> I THINK IT'S IMPORTANT FOR THE BOARD TO UNDERSTAND THAT.
BECAUSE THOSE 291 STUDENTS ARE SPREAD OUT THROUGH THE ENTIRE DISTRICT, AND THEY'RE SPREAD OUT BETWEEN ALL 19 SCHOOLS AND ALL THE 13 GRADE LEVELS THAT WE HAVE, THAT IT'S HARD TO REDUCE SERVICES WITH 291 STUDENTS, IF YOU UNDERSTAND WHAT I MEAN, BECAUSE IT MIGHT BE ONE FIFTH GRADER AT YAKULT PRIMARY AND THEN THREE SEVENTH GRADERS AT LAUREN.
YOU'RE NOT BEING ABLE TO REDUCE THE NUMBER OF TEACHERS OR REDUCE THE NUMBER OF SECRETARIES OR REDUCE THE NUMBER OF CUSTODIANS.
I JUST WANTED TO POINT THAT OUT.
>> THAT IS A CHALLENGE TO THE DISTRICT.
>> BUT REAL QUICK, WHILE WE'RE STILL IN ENROLLMENT, HAVE YOU DONE A COMPARISON FROM WHAT OUR PREVIOUS PROJECTIONS ARE COMPARED TO WHAT OUR CURRENT ENROLLMENT IS?
>> WELL, WHAT PROJECTING TO 24-25?
>> YEAH, A COUPLE OF YEARS AGO WHEN WE DID THIS WHEN WE PROJECTED WHAT ENROLLMENT WOULD BE TODAY, LIKE I JUST CURIOUS. [OVERLAPPING]
>> I HAVEN'T GONE BACK AND LOOKED AT THE PROJECTIONS.
WE TAKE IT PRETTY ANNUALLY AND WE'LL GO THROUGH THE ENROLLMENT AND LOOK AT HOW THE ASSUMPTIONS THAT WENT INTO THAT. [OVERLAPPING]
>> [INAUDIBLE] INTO THAT A LITTLE. I THINK WE WERE ON A TRAJECTORY WHERE WE WERE FORECASTING CONTINUED GROWTH, AND THEN COVID CAME AND WE THREW EVERYTHING OUT THE WINDOW.
SINCE WE'VE GOTTEN BACK FROM COVID, THIS WOULD BE OUR THIRD YEAR BACK FROM COVID.
WE HAVE BEEN VERY CAREFUL, CONSERVATIVE, IS THE RIGHT WORD WHERE LIKE TWO YEARS AGO, WE FORECASTED NO GROWTH AT ALL BECAUSE WE WEREN'T SURE WHO WAS COMING BACK.
THEN LAST YEAR WE FORECASTED VERY MINIMAL GROWTH.
I THINK THIS YEAR WE WENT BACK TO BECAUSE IN BETWEEN THAT PERIOD, WE DID A NEW DEMOGRAPHIC STUDY.
NOW WE'VE GONE BACK TO OUR MOST RECENT DEMOGRAPHIC STUDY, AND THAT'S WHAT WE'RE USING TO FORECAST OUR GROWTH NOW.
THIS YEAR, WE USED IT AGAIN TO FORECAST.
IT'S HARD TO COMPARE BECAUSE WE RECALIBRATED AFTER COVID.
WE DID A NEW DEMOGRAPHIC, SO THAT'S WHERE WE'RE AT.
AT THE BEGINNING OF THE YEAR, I THOUGHT WE WERE LIKE AT FTE SHORT, LIKE 170 OR SOMETHING LIKE THAT.
DOES IT CHANGE AS THE YEAR PROGRESSES? YOU KIND THE NUMBERS ADJUST.
BECAUSE WE'RE ALMOST A 300 NOW.
>> WHAT HAPPENS IS, WELL LAST YEAR JUST SO YOU KNOW THIS NUMBER IS DIFFERENT THAN THAT NUMBER, TERRY.
WE WERE TALKING ABOUT OUR WHAT WE HAD PROJECTED FOR LAST YEAR.
THIS IS WHERE WE ARE COMPARED TO OUR HIGH PRIOR TO COVID.
THE 291 IS WHERE WE WERE COMPARED TO OUR HIGH PRIOR TO COVID.
IT'S TWO DIFFERENT NUMBERS TO YOUR POINT.
>> BUT IT DOES CHANGE BECAUSE YOU TEND TO LOSE STUDENTS.
THE FURTHER YOU GO IN THE YEAR, THE MORE STUDENTS YOU DO TEND TO USE, AND THEN THEY TAKE AN AVERAGE.
>> THE END OF THE PANDEMIC RELIEF FUNDING, WHICH WE RECEIVED ENROLLMENT STABILIZATION FUNDING.
THERE WAS OVER $39 MILLION OVER THE LAST FIVE YEARS OF FUNDING THAT HAS HELPED US GET THROUGH RECOVERY SERVICES.
THAT FUNDING HAS COMPLETELY ENDED NOW, AND STARTING IN 24-25, WE ARE ABOUT TO JUST OUR NORMAL REGULAR STATE FUNDING AND FEDERAL FUNDING.
IT'S IMPORTANT TO NOTE TOO THAT STUDENT RECOVERING SPORTS NEEDS HAVE CONTINUED.
[00:10:07]
WE NEED TO CONTINUE TO SUPPORT OUR STUDENTS MORE THAN EVER NOW.WITHOUT THAT ADDITIONAL FUNDING, IT JUST CREATES A LITTLE BIT MORE OF A STRAIN ON BUDGETING.
INFLATION FOR GOODS AND SERVICES CONTINUES TO OUTPACE STATE FUNDING AND OTHER REVENUES.
THIS IS THE INFLATIONARY FACTORS.
THE STATE INFLATIONARY FACTOR IS BASED ON THE IMPLICIT PRICE DEFLATOR, AND THAT HAS NOT KEPT PACE WITH THE CONSUMER PRICE INDEX.
I HAVE SOME EXAMPLES IN THE SUMMARY, WHICH SHOW THAT OUR INSURANCE HAS GONE UP 84% SINCE THE PANDEMIC, OUR UTILITIES BETWEEN 30-60%.
THE INFLATIONARY FACTOR THAT THE STATE PROVIDES US IS JUST NOT KEEPING UP.
THIS IS SOMETHING THAT YOU'RE HEARING THAT'S A COMMONALITY FOR ALL THE SCHOOL DISTRICTS IN THE STATE OF WASHINGTON AND REALLY UNTIL THAT GAP IS CORRECTED.
WE'RE HOPING IN THE NEXT LEGISLATIVE SESSION, WE'RE GOING TO BE WORKING REALLY HARD TO SHARE OUR STORY OF HOW THAT'S IMPACTING US.
THE CHALLENGES, WHAT IT DID IS IT REQUIRED THE DISTRICT TO MAKE PROGRAM REDUCTIONS.
WE DID MAKE PROGRAM REDUCTIONS OF 6.2 MILLION DOLLAR.
WE ALSO INSTEAD OF BRINGING THE UNASSIGNED COMMITTED TO FUND BALANCE POLICY UP TO THE 6% OF THE CURRENT EXPENDITURES, WE ACTUALLY TOOK 1% OFF OF IT.
WE DID ADD TO IT AND WE USED SOME OF IT, SO IT'S REALLY A GAP OF ABOUT 2.3 MILLION DOLLAR.
AT THE VERY END, AFTER WE LOOK AT REVENUES AND EXPENDITURES, AND YOU'LL GET MORE INFORMATION ON THIS, IT'S REALLY THE TOTAL RESERVE USAGE IS 9.7 MILLION DOLLAR.
WE KNEW GOING INTO THIS BUDGET, THAT THE 6.2 MILLION WAS THE NECESSARY CUTS BECAUSE WE DID HAVE SOME SAVINGS FROM THE 23-24 SCHOOL YEAR THAT WOULD BE ABLE TO HELP US CONTINUE AND HANDLE SOME OF THE EXPENDITURES THAT WE HAD IN 24-25.
SOME OF THAT MONEY THAT'S IN THE ASSIGNED FUND BALANCE THAT WE'LL GO THROUGH.
ALSO INCLUDED IN THAT $9.7 MILLION, IT'S GOING TO BE TWO MILLION DOLLAR OF CURRICULUM ADOPTIONS.
IT'S GOING TO BE SOCIAL EMOTIONAL LEARNING SUPPORT, TECHNOLOGY, COMMUNICATION, AND ONGOING OPERATIONS.
THIS INFORMATION, THE WAY THAT IT WORKS IS IT FOLLOWS OUR BUDGET DOCUMENT, BECAUSE OUR FISCAL YEAR STARTS 91.
WE'RE NOT EVEN FINISHED WITH THE 23-24 SCHOOL YEAR.
WE'RE STILL, GETTING OUR REVENUE REPORTED, OUR EXPENDITURES REPORTED.
WHAT WE DO IS WE FOLLOW OUR DOCUMENT, WHICH GIVES US THE ACTUALS FOR 22-23, THE BUDGET FOR 23-24, AND THEN THE NEW BUDGET FOR 24-25.
THIS IS HOW WE'VE LAID IT OUT IS TO MIRROR OUR F-195 DOCUMENT.
THE F-195 DOCUMENT IS THE SCHOOL DISTRICTS ARE REQUIRED TO USE IT.
WE ALL FOLLOW THE SAME DOCUMENT.
THERE'S NOTHING UNIQUE TO OUR DOCUMENT.
IT'S THE STANDARD DOCUMENT, AND IT'S ACTUALLY PROVIDED BY OSPI.
WE HAVE TO EXPORT INFORMATION INTO THE F-195 DOCUMENT, AND THEN THAT DOCUMENT IS ACTUALLY CALCULATED BY OSPI, AND THEN WE CAN RUN REPORTS OFF OF THAT.
STARTING WITH ENROLLMENT IN OUR GENERAL FUND BUDGET.
WE ARE PROJECTING IN OUR COMPREHENSIVE AND ALE, 12,154 STUDENTS.
I BREAK OUT COMPREHENSIVE AND ALE FROM OUR RUNNING START AND OUR DROPOUT RE ENGAGEMENT BECAUSE MOST OF THE RUNNING START AND DROPOUT RE ENGAGEMENT ARE PASSED THROUGH.
REALLY, THOSE ARE STUDENTS THAT ARE NOT ATTENDING OUR SCHOOL, WE'RE PASSING THROUGH THE FUNDING THAT WE'RE GETTING FOR RUNNING START TO THEM.
COMPREHENSIVE SCHOOLS INCLUDES PRIMARY MIDDLE AND HIGH SCHOOLS IN A TRADITIONAL LEARNING ENVIRONMENT.
OUR ALE STUDENTS ARE ATTENDING BATTLEGROUND VIRTUAL ACADEMY,
[00:15:02]
CAM, RIVER HOMELINK AND SUMMERVIEW.AGAIN, WE'RE DOWN THE 291 STUDENTS IN THE COMPREHENSIVE AND ALE FROM 1920.
THE PANDEMIC LEVELS BEFORE THE PANDEMIC STARTED.
WE ARE INCREASING 33 FTE FROM OUR BUDGET IN 23-24 TO 24-25.
TALKING ABOUT ENROLLMENT, ENROLLMENT IS REALLY IMPORTANT BECAUSE IT DRIVES OUR SCHOOL FUNDING.
IT HELPS FUND STAFFING, MATERIALS, SUPPLIES, OPERATING COST.
OUR FUNDING IS BASED ON THE STUDENTS ACTUAL TIME IN SCHOOLS.
WHEN WE SAY FTE, WHAT WE'RE TALKING ABOUT IS FULL TIME ENROLLMENT, NOT THE NUMBER OF STUDENTS THAT ARE ENROLLED IN OUR SCHOOLS, BECAUSE THAT CAN BE A MUCH DIFFERENT NUMBER THAN HEADCOUNT.
>> JUST SO YOU KNOW THE INITIAL PROJECTIONS WE CAN CONTINUE TO MONITOR ENROLLMENT.
I'M GETTING REPORTS FROM SCHOOLS, WHO'S ENROLLED AND WHO'S NOT? IT APPEARS THAT WE'RE RIGHT ON THESE NUMBERS.
JUST SO YOU KNOW FOR THIS YEAR.
IT LOOKS LIKE WE'RE GOING TO MEET OUR PROJECTIONS.
>> THE ASSUMPTIONS THAT WE USED, AS DENNY HAD MENTIONED, WERE VERY CONSERVATIVE.
WE BASICALLY SAID, OKAY, THESE ARE ALL THE STUDENTS THAT ARE ATTENDING FOR 23-24, AND WE'RE GOING TO ROLL THOSE STUDENTS UP AND WE'RE GOING TO ASSUME THOSE STUDENTS ARE ALL COMING BACK TO OUR SCHOOL DISTRICT.
WE DID ADD TWO TRANSITIONAL KINDERGARTEN CLASSES, WHICH IS AWESOME.
AGAIN, THAT ACTUALLY ALIGNS WITH OUR DEMOGRAPHER REPORTS.
MAYBE SOME OF THE STUDENTS THAT WE DIDN'T QUITE GET THIS 23-24 MIGHT BE COMING IN NOW IN THE 24-25 IF OUR ENROLLMENT PROJECTIONS, ARE CONSERVATIVE AND WE GET A LITTLE BIGGER GROWTH THAN WE DO.
>> BEING CONSERVATIVE AND HAVING THE NUMBERS COME IN ABOVE IS MUCH BETTER THAN BEING AGGRESSIVE AND HAVING THE NUMBERS COME IN BELOW.
BECAUSE YOU PLAN TO SPEND THE MONEY THEN AND YOU DON'T HAVE IT VERSUS THE OTHER WAY IS YOU DIDN'T PLAN ON SPENDING IT, NOW YOU HAVE EXTRA.
>> AGAIN, DEMOGRAPHY REPORTS, AND WE PUT THIS INTO OUR FORECASTING, THEY SHOW MANY RESIDENTIAL MULTIFAMILY DEVELOPMENTS AND PROCESS FOR FUTURE ENROLLMENT STARTING IN 25-26.
I HAVE SOME ASSUMPTIONS FOR THE FOUR YEAR FORECAST WHERE WE INCLUDE THOSE ASSUMPTIONS IN THERE.
ANY QUESTIONS ON ENROLLMENT? MOVING ON TO REVENUE.
OUR REVENUE IS 233,250,109, AND THAT IS ABOUT 11.3 MILLION DOLLAR INCREASE FROM OUR PREVIOUS BUDGET.
SOME OF THAT IS AN INCREASE FOR CONTINGENCY BECAUSE WE ARE FINDING THAT WE WANT TO MAKE SURE WE HAVE CAPACITY IF OUR ENROLLMENT COMES IN.
WHEN I SAY THE WORD CONTINGENCY, CONTINGENCY MEANS FUND BALANCE NEUTRAL.
THAT MEANS IT'S OFFSET WITH AN EXPENDITURE AS WELL.
IT'S NOT JUST ASSUMING THERE'S REVENUE COMING, IT'S ASSUMING THEY'LL BE AN EXPENDITURE WITH IT.
BUT THAT'S JUST A SMALL PORTION OF THE INCREASE IN THE REVENUE.
>> AS YOU CAN SEE, THAT TOTAL STATE FUNDING IS 77.4% OF OUR REVENUE.
WE HAVE LOCAL TAXES IS 13%, AND THAT IS OUR LOCAL LEVY, AND THEN WE ALSO HAVE FEDERAL FUNDING, WHICH IS 6.1%, AND THEN LOCAL NON-TAX IS 3.3%.
LET ME GO THROUGH THOSE SO YOU CAN UNDERSTAND WHAT SOME OF THOSE ARE.
AGAIN, THE LOCAL TAXES IS THE PROPERTY TAX COLLECTIONS FROM THE LOCAL ENRICHMENT LEVY, OUR STATE GENERAL PURPOSE IS OUR BASIC EDUCATION ENROLLMENT FUNDING, RUNNING START, CTE, ALE, AND SPECIAL EDUCATION.
WE ALSO HAVE SPECIAL EDUCATION IN OUR STATE SPECIAL PURPOSE.
WE ALSO RECEIVE FUNDING IN THAT, IT'S MORE CONSIDERED CATEGORICAL FUNDING.
WE HAVE OUR LEARNING ASSISTANCE PROGRAM, TRANSITIONAL BILINGUAL PROGRAM, HIGHLY CAPABLE PROGRAM, TRANSPORTATION, AND OTHER STATE GRANTS ARE INCLUDED IN THAT STATE SPECIAL PURPOSE.
OUR FEDERAL SPECIAL PURPOSE IS, AGAIN, SOME MORE SPECIAL EDUCATION, OUR USDA SCHOOL MEAL PROGRAM FOR LUNCH AND BREAKFAST,
[00:20:05]
TITLE PROGRAMS, AND OUR AWARE PROGRAM.THOSE ARE GOING TO MAKE UP THE FEDERAL SPECIAL PURPOSE.
OUR LOCAL NON-TAX SUPPORT IS DONATION, FEES, FINES, INTEREST, PAID SCHOOL MEALS, COMMUNITY EDUCATION PROGRAM.
THAT MAKES UP SOME OF THAT LOCAL NON-TAX SUPPORT.
OFTEN THAT'S REVENUE AND EXPENDITURES THAT COINCIDE WITH EACH OTHER.
THEN WE DO HAVE A SMIDGE, JUST A VERY SMALL AMOUNT, OF REVENUE FROM OTHER SCHOOL DISTRICT ENTITIES AND FINANCING SOURCES THROUGH COOPERATIVE AGREEMENTS, NON-HIGH SERVING.
GOING TO PAGE 5 OF THE HANDOUT.
YOU CAN SEE THE INCREASES ON THE TOTAL REVENUE OF 250,109 IN THE BUDGET COLUMN, THAT'S THE THIRD COLUMN OVER.
THE LOCAL TAXES, IT'S 30,412,990, STATE GENERAL PURPOSE IS 132.2 MILLION, STATE SPECIAL PURPOSE IS 48.3 MILLION.
THEN MOVING ON TO FEDERAL SPECIAL PURPOSE IS ABOUT 14.3 MILLION, AND THEN OUR LOCAL NON-TAX SUPPORT, WHICH IS WHERE SOME OF OUR CONTINGENCY IS AS WELL, $7.7 MILLION.
OUR TAXES AND THE INCREASE THAT WE HAD, YOU CAN SEE THE CHANGES FROM '23/'24, I'D JUST LIKE TO HIGHLIGHT THAT WHY WE DID HAVE SOME INCREASES IN THE STATE GENERAL PURPOSE FOR THE 33 ADDITIONAL ENROLLMENT AND AN INFLATIONARY INCREASE, AND WE HAD THE FINAL PHASE IN OF OUR PHYSICAL, SOCIAL, EMOTIONAL SUPPORT.
WE HAD A SMALL INCREASE FOR CLASSIFIED POSITIONS, THE STATE GAVE A SMALL INCREASE IN THAT, ENROLLMENT GROWTH.
YOU CAN SEE THAT THERE IS INCREASES IN THE STATE GENERAL PURPOSE AND THE SPECIAL PURPOSE.
OUR BILINGUAL STUDENT ENROLLMENT HAS GROWN SIGNIFICANTLY, SO THAT BUDGET HAS GROWN SIGNIFICANTLY, AS WELL AS OUR SPECIAL EDUCATION BUDGET CONTINUES TO GROW.
THE SPECIAL PURPOSE PROGRAMS THAT WE TALKED ABOUT ARE GROWING.
AS YOU CAN SEE IN OUR FEDERAL SPECIAL PURPOSE, THERE IS A DECLINE, AND THAT IS THAT FEDERAL FUNDING FROM ESSER GOING AWAY.
ALTHOUGH WE HAD SOME AWARE GRANT MONEY COME IN, WHICH WAS ABOUT $1 MILLION A YEAR WE'RE GETTING IN THE AWARE GRANT.
THERE'S SOME OFFSETS THERE TO SOME OF THE MONEY GOING AWAY AND SOME OF THE MONEY COMING IN.
>> THE LAST LINE THERE, OTHER FINANCING SOURCES, THAT MILLION DOLLAR IN '22/'23. WHAT WAS THAT FROM?
>> '22/'23, THAT WAS OUR FIRST YEAR UNDER OUR NEW CAPITAL LEASING PROGRAMS THAT THE STATE HAD COME OUT WITH A NEW GASB, AND WE DIDN'T KNOW THE IMPACT OF IT, SO WE HAD TO PUT ENOUGH MONEY IN THERE BECAUSE WE WEREN'T SURE HOW IT WAS GOING TO IMPACT OUR BUDGET.
THAT WAS FROM AN ACCOUNTING CHANGE THAT WAS TAKING PLACE.
>> IT WAS JUST MOVING MONEY FROM ONE PLACE TO THE OTHER?
AS YOU CAN SEE, EVEN THOUGH WE HAD, I THINK YOU GUYS ALL REMEMBER THE BUDGET REDUCTION PLAN THAT WE WENT THROUGH WHEN WE HAD SOME STAFFING CHANGES, WE HAD SOME POSITION REDUCTIONS IN DISTRICT-WIDE SUPPORTS AND SOME OF OUR BUILDING SUPPORTS, BUT WE ALSO HAD INCREASES IN SOME OF OUR SPECIAL PROGRAMS THAT ACTUALLY OUR STAFFING HAS INCREASED FOR '24/'25.
WE HAVE ACTUALLY INCREASED, IN OUR CERTIFICATED STAFFING, WE INCREASED ONE, AND OUR CLASSIFIED EMPLOYEES IS 16 FROM THE BUDGET OF '23/'24.
AGAIN, OUR STAFFING FORMULA IS OUTDATED AND UNDERFUNDED, AND LEVIES MAKES UP A LOT OF THE DIFFERENCE, BUT WE'LL GO INTO MORE DETAILS ABOUT THAT DURING LEVY DISCUSSIONS.
YOU CAN JUST SEE THE GROWTH IN OUR STAFFING,
[00:25:01]
AND WHICH COINCIDE WITH STUDENT NEEDS.ON THE NEXT PAGE, PAGE 6, I ACTUALLY WALK THROUGH SOME OF THE INCREASES AND DECREASES.
THESE ARE JUST TO GIVE YOU AN OVERVIEW OF WHERE THE CHANGES HAPPENED IN CERTIFICATED STAFFING.
THE INCREASES INCLUDE CLASSROOM TEACHERS FOR TTK, WE ADDED QUITE A FEW SPECIAL EDUCATION TEACHERS, WE ADDED QUITE A FEW BILINGUAL TEACHERS, AND THEN WE ALSO HAD SOME AWARE GRANT STAFFING INCREASES, BUT HOWEVER, ON THE FLIP SIDE, WE DID HAVE SOME REDUCTIONS IN INSTRUCTIONAL COACHES, A DEAN, AND DIRECTOR OF INSTRUCTIONAL LEADERSHIP.
THERE MAY BE SOME OTHER LITTLE SMALL TWEAKS IN THERE, BUT THAT WAS JUST TO GIVE YOU AN OVERVIEW OF WHERE WE WERE.
WE'RE REDUCING SOME PROGRAMS, BUT WE'RE GROWING IN OTHER PROGRAMS. THE GROWTH IS REALLY CLOSE TO OUR STUDENT NEEDS.
CLASSIFIED, WE ALSO HAD QUITE A BIT OF INCREASE IN OUR SPECIAL EDUCATION ASSISTANCE, OUR BILINGUAL EDUCATION ASSISTANCE, SECURITY SUPERVISOR, AND OPERATION SUPERVISOR, AND PAYROLL TECHNICIAN.
THEN REDUCTIONS INCLUDED SOME ADMINISTRATIVE SUPPORT, ASSISTANT SECRETARIAL SUPPORT, AND GRADUATION COACHES.
SOME OF THOSE REDUCTIONS, AND THAT'S NOT EVERYTHING, IT'S NOT ALL-INCLUSIVE, BUT THAT JUST GIVES YOU AN IDEA OF THE REDUCTIONS THAT WE MADE, BUT WE ALSO INCREASED GREATLY FOR STUDENT NEEDS.
IS THERE ANY QUESTIONS ON OUR STAFFING CHANGES? MOVING ON TO EXPENDITURES.
EXPENDITURES, WE LOOK AT MULTIPLE WAYS.
I'M GOING TO SHOW YOU THE EXPENDITURES BY ACTIVITY, BY OBJECT, BY PROGRAM.
IT'S JUST DIFFERENT LENSES TO LOOK AT OUR EXPENDITURES.
THE FIRST WAY THAT WE'RE GOING TO LOOK AT IT IS WE'RE GOING TO LOOK AT IT BY ACTIVITY.
OUR TOTAL EXPENDITURES IS $242,645,492.
YOU CAN SEE IN THE GRAPH ON PAGE 6, YOU CAN SEE THAT TEACHING SUPPORT AND TEACHING ACTIVITIES IS 72.8% OF OUR EXPENDITURES BY ACTIVITY.
HOWEVER, IF YOU REALLY LOOK AT IT, AND YOU LOOK AT OUR OTHER SUPPORTS AND OUR BUILDING ADMINISTRATION, REALLY 95% OF OUR ACTIVITIES IS REALLY DIRECTLY TIED TO OUR BUILDINGS AND SUPPORTS.
WE DO HAVE CENTRAL ADMINISTRATION AS 5.1%, BUT REALLY THE TEACHING ACTIVITIES INCLUDE CLASSROOM TEACHERS, CLASSROOM SUPPLIES, EXTRACURRICULAR, OUR TEACHING SUPPORT INCLUDES LIBRARY, COUNSELORS, PUPIL SAFETY, SECURITY, HEALTH SERVICES, NURSING, PSYCHOLOGISTS, OTS, INSTRUCTIONAL PROFESSIONAL DEVELOPMENT IN LEARNING, INSTRUCTIONAL TECHNOLOGY, AND CURRICULUM.
THE OTHER SUPPORTS IS TRANSPORTATION, MAINTENANCE, GROUND CUSTODIANS, UTILITIES, INSURANCE, INFORMATION SYSTEMS, AND OUR WAREHOUSE.
OUR BUILDING ADMINISTRATION IS PRINCIPALS AND BUILDING OFFICE STAFF.
THEN THE CENTRAL ADMINISTRATION PORTION IS DIRECTORS, THE BOARD OF DIRECTORS, THE SUPERINTENDENT'S OFFICE, YOUR BUSINESS OFFICE, HUMAN RESOURCES, PUBLIC RELATIONS, INSTRUCTIONAL SUPERVISORS, AND OPERATION SUPERVISORS.
THAT'S JUST ONE LENS OF LOOKING AT IT.
NEXT, I'M GOING TO MOVE ON TO EXPENDITURES BY OBJECT.
THIS BREAKS DOWN OUR EXPENDITURES BY CERTIFICATED SALARIES, CLASSIFIED SALARIES, EMPLOYEE BENEFITS AND PAYROLL TAXES, SUPPLIES AND MATERIALS, PURCHASE SERVICES, TRAVEL, CAPITAL OUTLAY.
YOU CAN SEE THAT OUR EXPENDITURES INCREASED ABOUT $10.5 MILLION, IS THE TOTAL INCREASE IN EXPENDITURES THAT JUST CHANGED FROM OUR BUDGET AND '23/'24.
YOU CAN SEE THAT A GREAT DEAL OF THE INCREASE DOWN IN THE TABLE, AND I'M SORRY, WE'LL GO BACK TO LOOKING AT THE PI GRAPH HERE IN JUST A MINUTE, BUT YOU CAN SEE A GREAT DEAL OF THE CHANGE IS IN SALARIES.
THERE IS A REDUCTION IN EMPLOYEE BENEFITS AND PAYROLL TAXES, AND WE FOLLOW THE STATE GUIDELINES ON THE EMPLOYEE BENEFITS AND PAYROLL TAXES, BUT SALARIES AND BENEFITS MAKE UP 78.8% OF OUR BUDGET.
[00:30:02]
IF YOU TOOK OUR PURCHASE SERVICES FOR CONTRACTED FOOD SERVICE PROGRAMS AND TRANSPORTATION, ABOUT HALF OF OUR PURCHASE SERVICES ARE FOR TRANSPORTATION AND FOOD SERVICE PROGRAM SO REALLY OUR SALARIES AND BENEFITS WOULD BE CLOSER TO 84% OF OUR BUDGET.A GREAT DEAL OF OUR BUDGET IS IN SALARIES AND BENEFITS, AND THE OTHER PORTION IS FOR OUR UTILITIES AND INSURANCE AND MATERIALS AND SUPPLIES.
YOU CAN SEE HERE THAT MATERIALS AND SUPPLIES ONLY MAKE UP 7.5% OF OUR BUDGET, SO IT'S A VERY SMALL AMOUNT OF OUR BUDGET.
THEN YOU HAVE A LITTLE BIT IN SOME OTHER AREAS.
YOU'RE REALLY LOOKING AT THAT PRIMARILY, IT GOES TO STAFFING, SALARIES, AND BENEFITS.
NEXT, MOVING ON TO THE NEXT PAGE, ON PAGE 8, WE'LL LOOK AT EXPENDITURES BY PROGRAM.
THIS IS JUST, AGAIN, ANOTHER WAY OF LOOKING AT OUR EXPENDITURES.
I WON'T GO THROUGH EACH ONE OF THESE IN A LOT OF DETAIL, BUT YOU BASICALLY HAVE OUR BASIC EDUCATION AND ALE, SPECIAL EDUCATION, CTE PROGRAM, COMPENSATORY ED, AND I'M SORRY, THERE IS A TYPO ON COMPENSATORY EDUCATION.
THE LAST TWO BULLETS UNDER COMPENSATORY, WE WILL GET THOSE REMOVED BECAUSE THEY WERE JUST DUPLICATES OF BELOW OTHER INSTRUCTIONAL PROGRAMS, THAT WAS JUST A TYPO ERROR ON THAT.
ANYHOW, SO YOU CAN SEE, WE HAVE THE DESCRIPTION OF WHAT'S COMPENSATORY EDUCATION, OUR OTHER INSTRUCTIONAL PROGRAMS, AND THEN COMMUNITY EDUCATION, DISTRICT-WIDE SUPPORT, AND OUR SCHOOL MEAL PROGRAM AND OUR PUPIL TRANSPORTATION.
ALL OF THOSE GO INTO OUR EXPENDITURES.
EVERYTHING THAT WE DO IS EMBEDDED IN THE EXPENDITURES AND IN OUR BUDGET.
THAT IS LOOKING AT EXPENDITURES BY PROGRAM.
IS THERE ANY QUESTION ON EXPENDITURES? I'M GOING TO MOVE ON TO USE OF LEVY FUNDS.
AGAIN, WE DID THIS BY ACTIVITY.
THERE'S LOTS OF DIFFERENT WAYS OF LOOKING AT LEVY, AND WE WILL BE GIVING YOU MORE DETAILS ON LEVY USAGE.
AS WE'RE PREPARING FOR THE LEVY, WE WANT TO BREAK THINGS DOWN IN A LOT OF DIFFERENT WAYS AS WELL ON OUR LEVY, BUT IT'S JUST IMPORTANT TO KNOW THAT PRETTY MUCH ABOUT 90% OF OUR LEVY IS GOING FOR TEACHING, TEACHING SUPPORT, TRANSPORTATION, MAINTENANCE, UTILITIES, CENTRAL AND BUILDING SUPPORTS PRINCIPALS AND OFFICE STAFF, REALLY 67% IS FOR TEACHING AND TEACHING SUPPORT.
IT PAYS FOR A LOT OF DIFFERENT THINGS, IT PAYS FOR ADDITIONAL STAFFING, SALARIES ABOVE THE PROTOTYPICAL FUNDING FORMULA, SUBSTITUTE, [INAUDIBLE] ABOUT THE STATE FUNDING FORMULA, IT CAN PAY FOR SUPPORTS AND COUNSELING, SECURITY, NURSING, PROFESSIONAL DEVELOPMENT, AND STRUCTURAL TECHNOLOGY.
THERE'S MANY DIFFERENT THINGS THAT OUR LEVY PAYS FOR.
AGAIN, IT'S NOT LIMITED TO ALL OF THOSE THINGS, BUT IT INCLUDES ALL THOSE THINGS, BUT THAT JUST GIVES YOU A HIGH-LEVEL VIEW OF OUR LEVY FUNDS BY ACTIVITIES.
YOU CAN SEE THAT IT'S ACTUALLY ABOUT $35.6 MILLION, SO IT'S NOT ONLY THE $30 MILLION OF THE REVENUE THAT WE HAVE, BUT ALSO SOME OF THE MONEY IN THE FUND BALANCE BECAUSE WE ALWAYS USE OUR STATE FUNDING FIRST, AND THEN SOME OF THAT THAT'S SITTING THERE WILL BE USED FOR SOME OF THESE ACTIVITIES OUT OF OUR FUND BALANCE.
IF YOU TAKE OUR TOTAL REVENUES AND OUR TOTAL EXPENDITURES, AND WE DO HAVE A TRANSFER OUT TO THE DEBT SERVICE FUND, IT'S OUR LAST PAYMENT ON SOME NON-VOTED DEBT THAT WE HAVE, OUR 233,250,109 WITH TOTAL EXPENDITURES 242,645,492, AND THAT TRANSFER OUT WHERE OUR EXPENDITURES ARE EXCEEDING OUR REVENUE BY $9,765,383.
OUR PROJECTED ENDING FUND BALANCE FOR '23/'24, WHICH BECOMES YOUR BEGINNING FUND BALANCE FOR THE '24/'25 SCHOOL YEAR IS GOING, AND WE'RE GOING TO LOOK AT FUND BALANCE HERE ON THE NEXT PAGE, BY THE WAY.
[00:35:02]
THAT SHOWS THAT WE ARE GOING TO BE HAVING AN ENDING FUND BALANCE OF APPROXIMATELY 9.9% OR $24,108,951.THE NEXT PAGE IS OUR FUND BALANCE RESERVE PAGE.
YOU CAN SEE WHERE WE HAVE DIFFERENT, THIS IS IMPORTANT BECAUSE THE FUND BALANCE RESERVES ARE BROKEN INTO DIFFERENT CATEGORIES.
UNDERSTANDING THAT SOME OF THE CATEGORIES ARE RESTRICTED AND NOT AVAILABLE TO BE USED IS IMPORTANT.
LET'S START WITH, YOU CAN SEE OUR CARRYOVER OF RESTRICTED REVENUES, IT CAN'T BE USED TO BALANCE THE BUDGET.
IT INCLUDES UNSPENT REVENUE FROM PRIOR YEARS RESTRICTED FOR A SPECIFIC PROGRAM.
AN EXAMPLE OF THAT WOULD BE, WE CAN CARRY OVER SOME OF OUR CTE PROGRAM MONEY.
THAT WOULD BE AN EXAMPLE OF RESTRICTED REVENUES.
WE RECEIVED THE REVENUE, BUT WE DIDN'T SPEND IT THIS YEAR, WE ARE ALLOWED TO HOLD ONTO IT AND SPEND IT IN THE NEXT SCHOOL YEAR.
WE DO SHOW THAT THAT IS DECREASING AND IT'LL BE 385,000 AT THE END OF THE '24/'25 SCHOOL YEAR, IT MAKES THAT 0.2% OF THE ENDING FUND BALANCE.
OUR NON-SPENDABLE FUND BALANCE, AGAIN, THAT'S THE NEXT CATEGORY IT CANNOT BE USED TO BALANCE THE BUDGET.
IT INCLUDES PREPAID EXPENDITURES SUCH AS LONG-TERM CURRICULUM LICENSES AND WAREHOUSE INVENTORY.
I KNOW THAT SEEMS LIKE A LOT OF MONEY, BUT WHEN YOU DO PREPAY FOR LICENSES, YOU GET A MUCH STRONGER, BETTER PRICING FOR THOSE LICENSES VERSUS BUYING THEM ANNUALLY ON THE BUDGET.
>> YOU CAN SEE THAT WE WILL BE USING SOME OF THOSE LICENSES AND THEY WILL BE EXPENSED OUT TO THE '24-'25 SCHOOL YEAR, WHICH LEAVES US WITH INVENTORY AND PREPAID ITEMS OF 1.6% OF THE BUDGET, SO THAT'S ABOUT $3.9 MILLION.
NEXT IS RESTRICTED FOR UNINSURED RISK.
I'M SORRY, SELF-INSURED RISK IS ALSO IN THERE, AND THOSE AGAIN ARE RESTRICTED.
THEY CANNOT BE USED TO BALANCE THE BUDGET, AND THEY'RE RESERVED FOR UNEXPECTED INSURANCE CLAIMS SHOULD WE NEED THAT.
WE DON'T NECESSARILY SET ASIDE AN EXPENDITURE CATEGORY OTHER THAN DEDUCTIBLES, BUT WE DON'T LOOK AT A BIG CLAIM.
SO THAT HAS BEEN SET ASIDE, AND THAT'S BEEN IN OUR FUND BALANCE FOR YEARS AND YEARS SHOULD WE NEED THOSE RESERVES FOR AN UNEXPECTED EVENT, AND THEN WE CAN USE THOSE FUNDS.
NEXT IS OUR ASSIGNED TO OTHER PURPOSE CATEGORY.
NOW, THAT IS WHERE WE HOLD FUNDING THAT'S SPECIFICALLY EARMARKED FOR SOCIAL AND EMOTIONAL LEARNING, CURRICULUM ADOPTIONS THAT'S NOT A PREPAID, SO CONSUMABLES THAT WE'VE SET ASIDE, PUBLIC RELATIONS, FACILITY IMPROVEMENT SET ASIDES, TECHNOLOGY AND BUILDING AND DONATION CARRYOVER FUNDS AVAILABLE FOR EXPENDING IN THE FUTURE.
IT ALSO INCLUDES SOME OF OUR SAVINGS THAT WE HAD FOR THE '23-'24 SCHOOL YEAR THAT WE'RE ASSIGNING TO OUR BUDGET IN '24-'25 TO HELP US OFFSET SOME OF THAT EXCESS EXPENDITURES OVER REVENUE.
WE DO NOT HAVE ANYTHING IN THE UNASSIGNED RAINY DAY FUND.
OUR UPDATED FUND BALANCE POLICY IS BETWEEN 4 AND 6%.
YOU CAN SEE WE'RE ACTUALLY USING SOME OF OUR FUND BALANCE, WE'RE NOT ACTUALLY INCREASING IT.
NORMALLY, IT WOULD HAVE AN INCREASE IN THE FUND BALANCE BECAUSE OUR EXPENDITURES ARE GROWING AND WHEN IT'S 6% OF THE EXPENDITURES.
WHEN YOU'RE LOOKING AT THE FUND BALANCE AS A PERCENTAGE OF EXPENDITURES, WE ARE ENDING THE '24-'25 SCHOOL YEAR WITH ABOUT 9.9%.
[00:40:01]
SO REALLY, ONLY ABOUT 3.1% IS IN THE ASSIGNED TO OTHER PURPOSE.THAT IS WHERE WE'RE AT WITH OUR FUND BALANCE.
ON THE USE OF FUND BALANCE, AGAIN, SOME OF IT SPECIFICALLY WAS DESIGNED TO BE USED.
OF THE $9.7 MILLION WE DID DESIGN TO USE, ABOUT TWO MILLION DOLLARS IS INCLUDED FOR CURRICULUM, AND ABOUT 1.1 MILLION FOR FACILITY, TECHNOLOGY, SEL.
REALLY FOR ONGOING OPERATIONS, YOU'RE LOOKING AT ABOUT $6.7 MILLION OF THE FUND BALANCE.
AGAIN, MOST OF THAT'S FROM THE SAVINGS FROM THE '23-'24 SCHOOL YEAR.
ANY QUESTIONS SO FAR? WE'RE WRAPPING UP GENERAL FUND. WE'RE GETTING THERE.
>> IF I UNDERSTAND THE MATH CORRECTLY, MICHELLE, THAT 291 FT ENROLLMENT, WE'RE DOWN ABOUT 5.5 MILLION IN REVENUE.
IS THAT ABOUT RIGHT, THEREABOUTS? IS THAT WHAT WE'RE LOSING OUT ON, BASICALLY? [OVERLAPPING]
>> $3.1 MILLION, IT'S ABOUT 10,700 PER STUDENT IS IN THE ENROLLMENT.
>> IT IS. I DO HAVE A SUMMARY.
I'M NOT GOING TO GO THROUGH THE SUMMARY.
IT JUST TALKS ABOUT JUST AGAIN REITERATING SOME OF THE CHALLENGES THAT WE'VE HAD.
THE LAST PARAGRAPH, THERE'S WASHINGTON SCHOOLS FUNDING.ORG FOR MORE ISSUES AT THE CORE.
IT WAS JUST MEMORIALIZING SOME OF THE CHALLENGES THAT WE HAD AND JUST REITERATING SOME OF THE THINGS THAT WE'VE BEEN UP AGAINST ON THE GENERAL FUND.
I'M GOING TO MOVE ON TO THE ASB FUND BECAUSE WE ARE GETTING DOWN TO ABOUT 5:30.
SUMMARY OF ACTIVITIES AND FUND BALANCE.
AS YOU KNOW, THE ASB FUND IS A STUDENT BODY FUND, AND SO IT'S RAN BY THE STUDENTS.
THEY SET THEIR BUDGETS AND THEY TAKE AND THEY GET ALL OF THEIR BUDGETS READY.
THEN THEY SAY, THIS IS HOW THEY WANT TO SPEND THEIR MONEY.
REALLY WHAT WE'RE DOING IN THE BUSINESS OFFICE IS WE'RE JUST TAKING THEIR REQUEST AND THEIR BUDGETS, AND WE'RE PUTTING THEM ALL TOGETHER ALL INTO ONE TOTAL AMOUNT FOR THE DISTRICT.
STUDENT EXTRACURRICULAR ACTIVITIES ARE CULTURAL, ATHLETIC, RECREATIONAL, AND SOCIAL.
THEY'RE FUNDED BY FEES AND FUND RAISERS, SO THEY'RE NOT STATE-FUNDED.
IT'S ALL FROM THE STUDENTS RAISING MONEY OR BY FEES THAT HAVE BEEN COLLECTED, PARTICIPATION, ATHLETIC FEES, GATE MONEY, ALL THAT DIFFERENT STUFF GOES IN THERE, AND THEN ALSO SPECIAL PROJECTS IF THEY'RE RAISING FUND RAISINGS FOR SPECIAL EVENTS THAT THEY WANT TO GO TO OR SOMETHING SPECIAL THAT THEY WANT TO DO.
THE BUDGETS ARE PREPARED BY ALL SCHOOL ASB STUDENT COUNCILS.
OUR ELEMENTARY SCHOOLS ARE A LITTLE BIT MORE ADMINISTRATIVE BECAUSE WE DO HAVE A LITTLE BIT IN OUR ELEMENTARY SCHOOLS.
WE TAKE ALL OF THEIR EXPENDITURES WHICH, OVERALL FOR THE DISTRICT, WE'RE PROCESSING ABOUT $2.9 MILLION IN REVENUE AND ABOUT $2.9 MILLION IN EXPENDITURES.
THEY ALWAYS HAVE RESERVES SET ASIDE TO HELP THEM START THE NEW YEAR AND START SOME OF THOSE CLUBS.
THEY REALLY HAD JUST A LITTLE BIT OF AN INCREASE WHEN WE PUT IT ALL TOGETHER IN OUR ASB FUND.
NEXT, MOVING ON TO OUR DEBT SERVICE FUND IS, AGAIN, WE ARE ON THE VERY LAST PAYMENT OF OUR DEBT, WHICH IS NON-VOTED DEBT.
OUR LAST PAYMENT IS 373,885, AND INCLUDED IN THE REVENUE IS THE TRANSFER OUT FROM THE GENERAL FUND.
WE DO HAVE TO HAVE A FUND BALANCE IN THERE JUST DUE TO TIMING OF LEVY COLLECTIONS AND PAYMENTS.
I WANT TO HIGHLIGHT IN THIS THAT WE DO HAVE A TRANSFER OUT OF 595,000.
BY STATUTE, IF YOU HAVE INTEREST THAT YOU'VE COLLECTED IN YOUR DEBT SERVICE FUND, THAT FUNDING CAN BE TRANSFERRED INTO YOUR CAPITAL PROJECTS FUND.
IN THE RESOLUTION, WE'LL HAVE WHERE WE'RE GOING TO BE ASKING TO MOVE THAT TRANSFER.
[00:45:06]
I HAD TO WORK WITH OUR ATTORNEYS ON IT SO THAT'S SPECIALLY WRITTEN IN OUR RESOLUTION.BUT THERE'S REALLY NO REASON TO LEAVE IT IN THE DEBT SERVICE FUND BECAUSE IT'S REALLY NOT DOING ANY GOOD THERE.
WHAT WE'RE GOING TO DO IS MOVE IT INTO CAPITAL PROJECTS, AND IT'LL BE SPENT ON.
AS YOU KNOW, KEVIN HAD A LONG LIST FOR THE CAPITAL LEVY, BUT IT WASN'T EVERYTHING, SO IT WILL COME TO GOOD USE IN THE CAPITAL PROJECTS FUND.
WE WILL HAVE A SMALL ENDING FUND BALANCE IN THERE, AND THEN THAT ENDING FUND BALANCE WILL SIT THERE AND TELL, WE HAVE ANOTHER BOND OR SOMETHING ELSE THAT WE CAN SPEND THAT MONEY OUT WHERE WE HAVE SOME DEBT SERVICE PAYMENTS.
MOVING ONTO CAPITAL PROJECTS FUND, OUR FIRST-HALF COLLECTION OF OUR 2025 CAPITAL LEVY COLLECTION WILL BE COMING IN.
THAT'S ABOUT $4.6 MILLION OF THAT FIRST-HALF COLLECTION.
THE REST OF THE REVENUES IS MADE UP OF IMPACT FEES THAT WE COLLECT FOR NEW HOMES THAT ARE BEING DEVELOPED INTO THE DISTRICT, AND THEN THAT MONEY WILL BE SPENT BY THOSE CATEGORIES.
THE CAPITAL LEVY FUNDS WILL GO FOR THE CAPITAL PROJECTS THAT WE SAID WE WERE GOING TO USE THAT MONEY FOR.
THEN THE IMPACT FEES WILL GO FOR THINGS THAT HELP SUPPORT NEW STUDENT GROWTH, NEW CLASSROOMS, WHICH INCLUDE NEW MODULARS, AND IT DOES INCLUDE PART OF OUR WAREHOUSE.
OUR WAREHOUSE WON'T BE FINISHED THIS YEAR, SO WE NEEDED TO BUILD CAPACITY FOR NEXT YEAR BECAUSE WE'LL BE EXPENDING IT, AND THEN SOME BUDGET CAPACITY AS NEEDED.
BUT WE PLAN TO USE MOST OF OUR RESERVES IN OUR CAPITAL PROJECTS FUND, SO THERE'LL BE AN ENDING FUND BALANCE OF ABOUT $2.3 MILLION.
CAPITAL LEVY PROJECTS IN STRUCTURAL TECHNOLOGY EQUIPMENT AND FACILITY IMPROVEMENTS, AND WE HAVE THE LIST OF WHAT KEVIN PLANS TO DO ON THAT.
THEN FOR IMPACT FEES, AGAIN, MODULAR CLASSROOMS ARE INCLUDED.
ANY QUESTIONS ON CAPITAL PROJECTS FUND? I'M JUST GOING TO MOVE ON TO FINALLY OUR LAST PAGE ON 14, WHICH IS OUR FOUR-YEAR BUDGET FORECAST.
WE WILL ALSO INCLUDE THIS IN OUR PRESENTATION DURING OUR PUBLIC BUDGET HEARING AND THE ADOPTION OF THE BUDGET.
WE'LL HAVE A PRESENTATION ON THE FOUR-YEAR FORECAST, BUT I WANTED TO TELL YOU SOME OF THE ASSUMPTIONS THAT WENT INTO IT.
WE DO SHOW QUITE A BIT OF GROWTH IN THE DEMOGRAPHER PROJECTIONS.
SO THAT HAS BEEN BAKED INTO THAT BUDGET AS ADDITIONAL REVENUE THAT WE WILL RECEIVE FROM IT.
WE HAVE A SIGNIFICANT INCREASE IN OUR PRIMARY SCHOOLS.
OUR MIDDLE SCHOOLS HAVE A MODERATE INCREASE, AND HIGH SCHOOLS ARE ACTUALLY DECREASING MODERATELY ACCORDING TO THE DEMOGRAPHER PROJECTIONS.
WE WILL AGAIN ASSESS ENROLLMENT ANNUALLY.
THESE ARE JUST OUR HIGH LEVEL PROJECTIONS BASED ON THE DEMOGRAPHER PROJECTIONS.
FINGERS CROSSED, THAT IS ACTUALLY THIS GROWTH IS COMING BECAUSE THAT WOULD BE WONDERFUL TO GET US CLOSER TO OUR PRE-PANDEMIC NUMBERS.
WE ADD CERTIFICATED INSTRUCTIONAL STAFF AS OUR GROWTH CONTINUES.
THE STATE-FUNDED INFLATIONARY INCREASE PROJECTIONS ARE 1.9%, 2.1 AND 2% IN THE '25-'26, '26-'27, '27-'28.
YOU CAN SEE OUR INFLATIONARY INCREASES.
WE HAVE IN OUR FORECAST, WE ASSUME A SUCCESSFUL PASSAGE OF THE NEXT LEVY.
WE BUILT IN SIMILAR INCREASES AS A PLACEHOLDER.
AGAIN, THAT'S SOMETHING THAT THE BOARD WILL DECIDE WHEN THE TIME COMES OF WHAT THAT LEVY ACTUALLY LOOKS LIKE.
BUT WE JUST HAD TO HAVE A PLACEHOLDER IN THERE BECAUSE IT WOULD BE VERY CHALLENGING TO BALANCE A BUDGET WITHOUT $30 MILLION IN THOSE OUTLYING YEARS, SO WE ASSUME THE PASSAGE OF THE LEVY.
THEN THIS IS GOING TO BE THE TOUGH PILL TO SWALLOW HERE IS THAT
[00:50:02]
EVEN THOUGH WE DO HAVE ADDITIONAL ENROLLMENT AND A SUCCESSFUL PASSAGE OF A LEVY, AND AGAIN, IT'S JUST SIMILAR TO WHAT WE HAD ON OUR LAST ELECTION, WE STILL HAVE REDUCTIONS IN EXPENDITURES THAT WE'RE LOOKING THAT WILL BE NECESSARY.AGAIN, WE'LL ASSESS THIS AS WE GO.
WE DON'T KNOW WHAT THE STATE FUNDING LEVELS WILL COME IN.
WE DON'T KNOW WHAT KIND OF HELP WE'LL GET.
WE'LL HAVE TO ASSESS IT YEAR BY YEAR, BUT WE ARE REQUIRED TO DO A FOUR-YEAR FORECAST.
WE'RE REQUIRED TO DO IT BASED ON WHAT WE KNOW NOW, AND SO THAT'S WHERE WE'RE ESTIMATING.
IN '25-'26, WE WOULD HAVE AN ADDITIONAL REDUCTION IN EXPENDITURES OF FIVE MILLION DOLLARS.
THEN AGAIN, IN '26-'27, 8.1, AND '27-'28 OF 6.3.
THAT'S WHAT IT TAKES TO BALANCE BECAUSE THEY WERE CARRYING OVER SOME OF THESE EXPENDITURES.
THE INFLATIONARY INCREASES THAT YOU CAN SEE HERE ARE NOT THE SAME AS WHAT THE REALITY OF THE INCREASES ARE THAT COME TO OUR DISTRICT.
>> I WAS ACTUALLY GOING TO JUST ASK THAT QUESTION AS I KNOW THAT [INAUDIBLE] INFLATION AS WELL.
IN THE PROJECTION FOR THE NEXT FOUR-YEAR BUDGET, ARE YOU USING AN INFLATION FACTOR MORE RELATIVE TO WHAT IT'S ACTUALLY GOING TO BE?
>> EXACTLY. OVER TIME, IF YOU CONTINUE WITH REDUCTIONS, AND THIS IS PART OF THE CONVERSATION THAT WE NEED TO HAVE THAT THEY UNDERSTAND AT THE STATE LEVEL, IS THAT OVER TIME IF YOU KEEP CUTTING AND CUTTING, AND YOU'RE NOT EVER BRINGING BACK SOME OF THOSE THINGS, YOU'RE LOOKING AT TOTAL REDUCTIONS OF $25.6 MILLION INTO THE '27-'28 SCHOOL YEAR.
WE HAVE TO LOOK AT IT YEAR BY YEAR, WE'LL LOOK AT IT ANNUALLY, BUT WE HAVE TO PREPARE FOR THAT AS WE'RE LOOKING INTO THE FUTURE OF WHAT THAT MIGHT LOOK LIKE, AND HAVE TO DETERMINE WHERE ARE REVENUE.
HOPEFULLY, THERE'LL BE ADDITIONAL REVENUE THAT WILL COME IN TO HELP MITIGATE THAT.
>> AGAIN, THE NEXT STEPS IS WE'RE GOING TO HAVE A PUBLIC BUDGET HEARING PRESENTATION.
WHEN WE DO THE PUBLIC BUDGET HEARING, WE DO A PRESENTATION, THEN WE STOP THE MEETING.
WE DO A PUBLIC HEARING THAT ANY MEMBER OF THE COMMUNITY CAN SPEAK FOR AGAINST THE BUDGET.
THAT'S PART OF THE REQUIREMENTS THAT WE DO THIS PUBLIC BUDGET HEARING.
THEN AFTER THE BUDGET HEARING CLOSES, THE PUBLIC HEARING CLOSES, WE'LL LOOK AT PART OF THE REGULAR BOARD MEETING OF ADOPTION OF THE BUDGET.
YOU HAVE ALL MY CONTACT INFORMATION ON PAGE 14.
IF THERE'S ANY QUESTIONS THAT COME UP THAT YOU THINK OF, WE CAN ADDRESS THOSE FOR YOU AT A LATER TIME.
>> ANY OTHER QUESTIONS FROM THE BOARD BEFORE WE WRAP UP?
>> IF I MAY, MICHELLE, I'M HAVING TROUBLE WITH THIS LAST THING HERE, THIS ESTIMATED REDUCTIONS OF EXPENSES, IF YOU CAN SAY IT ONE MORE TIME.
I HAVE A LITTLE TROUBLE GETTING MY MIND AROUND IT.
LET ME TELL YOU WHAT I DO HAVE.
>> FOURTEEN. THE '24-'25 REDUCTION OF EXPENSES, THAT 6.2 IS BACK IN HERE. [OVERLAPPING]
>> I CAN SEE IT CLEARLY. NOW WE'RE PROJECTING THAT IN '25-'26 THAT WE WILL DO THE SAME THING THAT WE'VE DONE HERE, AND WE WILL ACTUALLY BE $5.0 MILLION SHORT.
>> IN ORDER TO BALANCE THE BUDGET FOR '25-'26, WE HAVE TO MAKE AN ADDITIONAL FIVE MILLION DOLLARS IN REDUCTIONS.
>> IF WE MAINTAINED EXACTLY WHAT WE DID HERE, WE WOULD BE FIVE MILLION DOLLAR SHORT, CORRECT?
>> BASED ON, YES, OUR CURRENT STAFFING LEVELS, BUT THAT ALSO INCLUDES INCREASED ENROLLMENT, AND THEN IT ALSO INCLUDES THE INFLATIONARY FACTORS BUILT INTO IT.
>> BUT, TERRY, THERE'S ALSO SOME UNKNOWNS.
FOR INSTANCE, IF WE WERE TO CONSIDER PASSING A LEVY AT A HIGHER RATE, WE COULD MINIMIZE THOSE CUTS.
>> IF THE STATE DECIDES TO GIVE US MORE MONEY AND MAKE UP SOME OF THAT GAP IN INFLATION, THAT COULD REDUCE SOME OF THOSE COSTS.
>> I THINK WHAT I'M TRYING TO GET MY BRAIN AROUND IS I CAN PICTURE INFLATION IMPACTING US, I CAN SEE THAT.
[00:55:01]
I DON'T GET WHAT THE OTHER INCREASES ARE THAT TURN INTO FIVE MILLION.>> IT IS THE DIFFERENCE BETWEEN WHAT THE STATE IS GOING TO FUND US '25-'26, WHAT THE STATE IS GOING TO FUND US AND WHAT OUR TRUE COSTS ARE, [OVERLAPPING] AND THAT'S THAT GAP.
>> THIS YEAR WAS 6.2. I GOT IT. THAT MAKES SENSE. THANK YOU.
>> REMEMBER, WE'RE ABLE TO USE SOME OF OUR FUND BALANCE [OVERLAPPING] TO MINIMIZE THAT, BUT THAT FUND BALANCE, IF YOU KEEP USING IT AND YOU KEEP USING IT, ULTIMATELY.
>> IT'S USED. YES, THAT'S THE BEST WAY. THANK YOU, MICHELLE.
>> WITH NO FURTHER QUESTIONS, WE'LL ADJOURN THIS MEETING AT 5:41.
THANK YOU SO MUCH FOR SHARING THIS WITH US.
IT WAS GREAT AS ALWAYS.
* This transcript was compiled from uncorrected Closed Captioning.