[00:00:01]
WELL, GOOD EVENING, EVERYONE.[1. Call to Order]
GOOD AFTERNOON. NOT EVENING YET. YEAH, GOOD AFTERNOON, FELLS LIKE EVENING. GOOD AFTERNOON, WE'RE GOING TO CALL THIS MEETING OF THE, UH, SPECIAL MEETING BUDGET WORK SESSION FOR THE BATTLE GROUND SCHOOL BOARD TOGETHER. IT'S CALL TO ORDER AT 4 O'CLOCK AND WE DON'T DO A ROLL CALL I DON'T BELIEVE.SO, WE ARE GOING TO TURN THIS OVER IMMEDIATELY, TO WHOM? TO MICHELLE SCOTT, OUR CFO.
MICHELLE SCOTT, WHAT A TREAT, YES.
[2. Special Meeting]
GOOD AFTERNOON, BOARD.THANK YOU FOR JOINING US ON THIS BOARD WORK SESSION FOR A BUDGET UPDATE FOR 26-27.
FOR ANYONE THAT IS ATTENDING ONLINE THE BOARD WORK SESSION BUDGET HANDOUT IS LOCATED ONLINE ON THE BOARD DOCS.
AS WELL AS THE ENTIRE BUDGET DOCUMENT THAT IS 207 PAGES EXACTLY. SO, THIS IS, THIS IS WHY WE TAKE THIS OPPORTUNITY TO DO A WORK SESSION, TO PROVIDE CONTEXT TO THE F-195 DOCUMENT, BECAUSE IT'S VERY DIFFICULT TO PULL OUT THE INFORMATION THAT SOMEBODY WOULD PROBABLY BE INTERESTED IN, BUT THERE'S A LOT OF DETAILED INFORMATION IN THE DOCUMENT. SO THAT IS...
THIS DOCUMENT WILL ALSO, THIS WORK SESSION HANDOUT WILL ALSO PROVIDE SOME EDUCATION. WE'RE GOING TO GIVE SOME CONTEXT TO SOME OF THE, THE CATEGORIES OF EXPENDITURES THAT WE USE.
SO, THERE'S GOING TO BE A LOT THAT WE'RE GOING TO REVIEW. IT'S GOING TO TAKE SOME TIME. I WOULD LIKE TO INTRODUCE CINDY CLONES.
YOU ALREADY ACTUALLY KNOW HER, BUT THIS IS HER LAST TIME SITTING WITH ME.
FOR THE BUDGET UPDATE, JESSICA DAVIS WILL BE JOINING THE BUSINESS OFFICE, OR SHE HAS JOINED ACTUALLY, TODAY, WAS HER FIRST DAY, AND SO SHE WILL BE TAKING CINDY'S BIG SHOES, BE FILLING SOME VERY BIG SHOES, AND HELPING WITH BUDGET NEXT YEAR, SO I'M GLAD SHE COULD BE HERE TONIGHT.
I TALK ABOUT, BEFORE WE GET STARTED, I KIND OF WANT TO TALK ABOUT THE BUDGET PROCESS. IT IS A VERY LONG PROCESS THAT WE HAVE. WE ARE STARTING IN JANUARY. WE START PREPARING TIMELINES. WE'RE STARTING TO WATCH THE LEGISLATIVE ACTION THAT'S REALLY CRITICAL TO UNDERSTANDING OUR STATE FUNDING. SO, THERE'S, WE'RE MONITORING WHAT'S HAPPENING THERE. WE'RE PREPARING ALL OF OUR KIND OF OUR TEMPLATES THAT WE HAVE.
WE DO A LINE-BY-LINE-ITEM BUDGET FOR EACH ONE OF OUR DEPARTMENTS. SO, THEY HAVE LITERALLY EACH ONE OF THEIR EXPENDITURE LINES. WE HAVE THOUSANDS OF ACCOUNTS AND THEY ACTUALLY GO IN. WE HAVE THEM PUT NOTES IN THERE, WHAT IT'S FOR. SO, WE'RE WORKING TOWARDS A NEEDS-BASED BUDGETING. WE'RE MAKING SURE THAT WHAT IS IN THERE IS ACTUALLY WHAT IS NEEDED FOR OPERATIONS.
GOING INTO FEBRUARY, WE START LOOKING AT ENROLLMENT AND WE START LOOKING AT STAFFING. WE HAVE SOME STAFFING SHEETS THAT WE START WORKING ON, AND THEN WE START WORKING ON PERSONNEL. AND SO, THERE'S A, THERE'S A TIGHT TIMELINE BECAUSE YOU HAVE LEGISLATIVE ACTION GOING ON, YOU'RE TRYING TO UNDERSTAND WHAT'S HAPPENING WITH FUNDING, YOU HAVE CONTRACTUAL DEADLINES THAT YOU NEED TO MEET, AND THEN WE JUST HAVE, JUST, JUST WORKING THROUGH WITH ALL OF OUR DEPARTMENT MANAGERS, CURRICULUM DEPARTMENT FACILITIES, SPECIAL EDUCATION, I MEAN WE HAVE A HOST OF DIFFERENT DEPARTMENTS. SO, WE'RE MEETING WITH THEM, WE ARE GOING THROUGH THEIR BUDGETS WITH THEM IN THEIR MSOC AND MATERIALS, MATERIAL SUPPLIES AND OPERATING COSTS, AND THEN WE'RE ALSO WORKING WITH HR CLOSELY. AND ONE OF THE CHALLENGES THAT WE HAD WITH THIS BUDGET WITH, WAS BEING ON THE NEW CUMULATIVE SKYWARD SYSTEM. THERE WERE CERTAIN REPORTS THAT WE WERE USED TO RECEIVING THAT WERE STANDARD REPORTS THAT I WORKED WITH FOR 18 YEARS THAT WERE NOT AVAILABLE.
WE HAD TO WORK WITH TRYING TO GET THOSE BUILT FOR US. IT WAS REALLY, IT WAS, IT WAS VERY CHALLENGING, LET'S PUT IT THAT WAY.
BUT WE GOT THROUGH IT AND WE LEARNED ABOUT THE SYSTEM. WE HAD SOME TROUBLE WITH SOME THE EXPORT, UNDERSTANDING SOME OF THE EXPORTS BUT WE GOT, WE, WE KEPT
[00:05:01]
ON WE MADE OUR TIMELINE TO GET THE BUDGET ADOPTED SO THAT'S BY THE END OF THE, THIS MONTH.UM. SO AGAIN, JUST A LEGISLATIVE SYSTEM, AH, AH SESSION ON BUDGET IMPACTS.
LET'S GO TO, SO THIS IS UM, WE'RE GOING TO GO THROUGH THE EXECUTIVE SUMMARY AND THEN WE'LL TALK ABOUT THE DIFFERENT FUNDS THAT WE HAVE FOR THE DISTRICT AND THEN WE'LL GO THROUGH EACH ONE OF THOSE FUNDS AND I WILL PAUSE FOR QUESTIONS IN EACH SECTION. SO, IF YOU HAVE ANY QUESTIONS THAT WE CAN TAKE DOWN AND ANYTHING WE CAN RESPOND TO RIGHT AWAY OR ANY, ANY DISCUSSION THAT YOU MAY HAVE.
SO, AS WE GO THROUGH EACH ONE OF THE FUNDS AND SOME OF THE SECTIONS WITHIN THE FUNDS, BECAUSE THE GENERAL FUND IS QUITE LARGE, WE'LL PAUSE AT THOSE SO THAT YOU CAN ASK QUESTIONS.
SO, STARTING ON THE PAGE TWO OF THE, THE EXECUTIVE SUMMARY AND FISCAL OVERVIEW. SO, I'M JUST GOING TO KIND OF READ THROUGH THIS, THIS FIRST PART HERE. SO, BATTLEGROUND PUBLIC SCHOOLS FACES CRITICAL BUDGET CHALLENGES FOR THE 26-27 FISCAL YEAR AND SIGNIFICANT CONCERNS REGARDING OPERATIONAL CONTI OPERATIONAL CONTINUITY IN THE 27-28 SCHOOL YEAR AND BEYOND UNLESS NEW REVENUE IS RECEIVED. THE PRIMARY DRIVER OF THIS FISCAL STRESS IS THE NON-RENEWAL OF THE EDUCATIONAL PROGRAMS AND OPERATIONS EP&O LEVY. THE LOSS OF THE LEVY CREATED AN ANNUAL FUNDING SHORTFALL EXCEEDING 38 MILLION DOLLARS FOR 26-27 FORCING MAJOR REDUCTIONS TO STAFFING AND STUDENT PROGRAMS AND THE USE OF FUND BALANCE RESERVES. TO ADDRESS THIS DEFICIT LONG-TERM THE BOARD OF DIRECTORS APPROVED PROPOSITION 11, THE STUDENT SAFETY ACADEMIC SUPPORT EDUCATIONAL PROGRAMS AND OPERATIONS LEVY FOR THE NOVEMBER 26 BALLOT.
SO, WE HAVE, UM, I, I'VE PUT A TIMELINE OF JUST SOME FISCAL IMPACTS FROM THE MULTI YEARS THAT WE'VE HAD STARTING IN THE 25-26 SCHOOL YEAR.
WE REDUCED EXPENDITURES 14 MILLION DOLLARS AND WE ELIM...
WHICH WAS, INCLUDED THE ELIMINATION OF 131.1 STAFFING POSITIONS.
AND IN, FOR NEXT FISCAL YEAR, UM, WE WERE CHARGED WITH REDUCING EXPENDITURES BY $20 MILLION AND 137.2 STAFFING POSITIONS. AND SO, UM, WE ARE, UM, LOOKING, OUR OUTLOOK FOR 27-28 IS WITHOUT AN APPROVED LEVY WE WILL BE HITTING A NEGATIVE ENDING FUND BALANCE UNLESS EXPENDITURES CAN BE REDUCED ANOTHER 13.3 MILLION DOLLARS IN 27-28 AND THAT'S ASSUMING THE MAINTENANCE OF A 4% UNASSIGNED MINIMUM FUND BALANCE.
SO, SOME OF THE KEY OPERATIONAL DRIVERS AND SHORTFALLS THAT WE HAD, SO WE NOT ONLY HAD THE CHALLENGE OF HAVING TO REDUCE THE 20 MILLION DOLLARS BUT WE ALSO HAD SOME INCREASED COSTS THAT WERE OUTSIDE OF OUR CONTROL AND THOSE INCLUDED THE PUPIL TRANSPORTATION FUNDING GAP AND WE'VE TALKED QUITE A BIT ABOUT THAT BUT THE TOTAL GAP WAS 3.9 MILLION DOLLARS AND THAT'S BETWEEN FUEL CONTRACTED SERVICES AND CONTRACTOR BENEFITS FOR TRANSPORTATION.
SO, THAT'S THE GAP BETWEEN THE FUNDING OF THAT, OF THAT PROGRAM AND THE EXPENDITURES OF THAT PROGRAM.
A SPECIAL EDUCATION STILL HAS A DEFICIT OF $3.74 MILLION. THIS IS ONE THAT ANNUALLY HAS A DEFICIT. IT'S UNFUNDED. AND THEN ALSO OUR SUBSTITUTE COSTS CONTINUE TO BE UNFUNDED BY THE STATE BUT MANDATED AND REQUIRED. AND THAT'S ABOUT $2.5 MILLION AND ABOUT $450,000 FOR UNFUNDED MEDICAL BENEFITS FOR SUBSTITUTES BECAUSE THEY BECOME ELIGIBLE FOR THOSE BENEFITS AS WELL.
SO, WE HAVE A COST LAG BETWEEN STATE AND FEDERAL ALLOCATIONS, UM, KEEPING PACE WITH OUR RAPID INFLATION OF UTILITIES, INSURANCE, AND FUEL, AND WE'LL TALK ABOUT THAT AS WE GO THROUGH THIS. SO, I WANTED TO GIVE YOU SOME STATE BUDGET CONTACTS AND LEGISLATIVE HIGHLIGHTS. JUST SO YOU CAN...
TELL IN THIS LAST LEGISLATIVE SESSION AND SOME OF THIS WE'VE ALREADY TALKED ABOUT BUT I JUST WANTED TO MEMORIALIZE IT WITHIN THE DOCUMENT. THE BEST
[00:10:01]
DEPRECIATION REDUCTION IN FUNDING WAS $300,000. THIS IS THE STATE TRYING TO KIND OF BALANCE THEIR BUDGET AND WORKING WITH THE, THEY, THEY DECIDED THAT THEY NEEDED TO CUT $25 MILLION FROM DEPRECIATION, WHICH REDUCES OUR FUNDING THAT WE ARE USED TO THAT SUPPORTS PAYING FOR OUR CONTRACT. AND SO, THEY DID IT ACTUALLY IN THE, IN THE CURRENT SCHOOL YEAR, WHICH IS KIND OF, IT'S LIKE, WELL, WE BUDGETED THAT REVENUE, AND NOW YOU'RE GOING TO TAKE $300,000 AWAY FROM US. THANK YOU, NOT. SO AGAIN, IT IS GOING TO CONTINUE ON FOR NEXT, FOR THE 26-27, WE WILL NOT HAVE $300,000 OF REVENUE THAT WE NORMALLY RECEIVE FOR DEPRECIATION. UM.TRANSITION TO KINDERGARTEN, WE HAD THE TK CUTS, UM, AND THE STATE REDUCED THE SLOTS BY 25%. SO, BATTLEGROUND, THEY DID A FORMULA, AND THEY LOOKED AT A LOT OF DIFFERENT VARIABLES, AND BATTLEGROUND LOST TWO OF OUR SEVEN CLASSROOMS THAT WE'RE ABLE TO FUND. AND WHILE YOU CAN REDUCE TEACHING STAFF AND PARAEDUCATORS THAT ARE DIRECT EXPENDITURES WITH THOSE STUDENTS, THAT FUNDING ALSO CAME WITH SUPPORTING OUR SECRETARIES, OUR OVERHEAD, OUR ADMINISTRATORS, YOU KNOW, SUPPLIES AND MATERIALS FOR, YOU KNOW, UTILITIES BECAUSE IT'S, IT'S, THAT'S HOW THE FUNDING AND SOURCES WORK. SO, WHEN YOU TAKE AWAY THAT YOU CAN REDUCE SOME OF THE EXPENSE, THEN SOME OF THAT REVENUE GOES AWAY THAT YOU DON'T HAVE FOR SOME OF THOSE INDIRECT COSTS.
ELECTION ACCOUNTING ADJUSTMENTS. SO, I WANTED TO POINT THIS OUT, TOO, BECAUSE HISTORICALLY A LEVY ELECTION, NOW THIS IS NOT FOR BOARD OF DIRECTORS. THIS IS FOR LEVY ELECTIONS IS, THEY WERE CATEGORIZED UNDER THE BOARD OF DIRECTORS' BUDGET AND THIS IS PER THE ACCOUNTING MANUAL. SO, WE WERE ALWAYS INSTRUCTED THAT ELECTIONS COST ALWAYS CAME UNDER THE BOARD BUDGET, JUST LIKE LEGAL FEES DO. EFFECTIVE FOR THE 26-27 SCHOOL YEAR UNDER SENATE BILL 5192, THAT WAS CHANGED THAT ONLY BOARD BUDGETS WOULD HAVE BOARD DIRECTOR ELECTION COSTS AND THAT WE WERE DIRECTED BY OSPI AND THROUGH THIS LEGISLATIVE ACTION TO PUT THE ELECTION COSTS INTO THE SUPERINTENDENT'S BUDGET.
SO, YOU'RE GOING TO SEE A LARGE INCREASE BECAUSE WE HAVE A, A LEVY ELECTION COMING UP IN NOVEMBER WHICH IS PART OF THIS BUDGET. SO, WE HAD TO INCREASE THE SUPERINTENDENT'S BUDGET BY $206,500, UM, FOR THESE COSTS THAT NORMALLY WOULD HAVE BEEN INCLUDED IN THE BOARD OF DIRECTORS' BUDGET.
SO BASED ON THE STATES REQUIRED F-195, NOW JUST AGAIN, SO YOU KNOW THIS DOCUMENT IS A, THIS IS A STATE DOCUMENT. WE INPUT INFORMATION AND EXPORT INFORMATION AND THEN THIS DOCUMENT DOES, THAT INFORMATION IS TAKEN AND PUT INTO THIS.
SO, WE DON'T HAVE CONTROL, VERY MUCH CONTROL OF THIS DOCUMENT. THERE IS SOME CONTROL, BUT NOT VERY MUCH CONTROL OF THE DOCUMENT. SO, UM, WE WORK WITH THE DOCUMENT AND THAT'S FOR CONSISTENCY AND TRANSPARENCY TO, FOR ALL SCHOOL DISTRICTS. BUT I'VE NOTED THAT THERE ARE SOME PROGRAMMING ISSUES WHERE THEY GOT SOME LIKE PERCENTAGES THAT DIDN'T DROP DOWN RIGHT AND YOU CAN KIND OF SEE THEM AND THERE'S, THERE'S JUST SOME, A COUPLE OF THINGS THAT I NOTED THAT WERE NOT, THAT THEY JUST HADN'T UPDATED, BUT I CANNOT MAKE THE CHANGES BECAUSE IT'S, IT'S IT'S LOCKED IN. I'M LOCKED OUT OF MAKING THOSE CHANGES. SO, IS THERE ANY QUESTIONS SO FAR? I'M GOING TO PAUSE FOR A MINUTE.
YES. SO, THE LEVY COST, THE LAST ONE, MOST RECENT I CAN REMEMBER. WE HAD A LEVY IN FEBRUARY.
SO THAT MEANS THAT THAT COST OF THAT LEVY HAS BEEN MOVED FROM THE BOARD'S BUDGET TO THE... SUPERINTENDENT'S BUDGET.
NO, THAT COST WILL BE IN THE BOARD'S BUDGET. SO, BECAUSE IT'S IN THE 25-26 FISCAL YEAR.
AND SO, THIS ACCOUNTING THAT MAKES SENSE.
THE ACCOUNTING MANUAL UPDATE AND WAS FOR 26-27.
OKAY. SO THOSE THAT MEAN THEN THAT, IF I UNDERSTAND CORRECTLY, THE BOARDS BUDGET WAS ABOUT $500,000.00, SO IT'LL BE LESS
[00:15:02]
NOW BECAUSE WE'RE MOVING THAT TO THE OTHER PLACE? IT'S LESS BECAUSE WE ARE RUNNING THE ELECTION IN NOVEMBER AND WE GET TO SPLIT THE COSTS FOR THAT ELECTION.COST WILL BE SPLIT BY A LOT OF DIFFERENT THINGS. SO, IT REDUCES OUR COST TO RUN IT IN NOVEMBER.
BUT YES, TERRY, TO YOUR QUESTION, IT WILL COME OUT OF THE BOARD BUDGET AND JUST BE MOVED TO THE SUPERINTENDENT BUDGET BUT IT WILL ALSO BE LESS.
IT'S HOW MUCH WE HAVE TO SPEND ON THINGS RIGHT.
AND IF WE'RE TAKING THAT OUT OF OUR BUDGET, THEN WE SHOULDN'T BE HAVING THAT $500,000.00 OF OUR BUDGET ANYMORE.
NO, YOU'LL YOU'LL STILL HAVE THE ATTORNEY FEES BECAUSE THAT'S WHERE THAT'S REQUIRED TO BE, BUT THE ELECTIONS WILL NO LONGER BE IN THE BOARD BUDGET.
WE, WE AND AGAIN LIKE I TALKED ABOUT WE DO A LINE-BY-LINE BUDGET. SO, WHEN WE'RE LOOKING AT ELECTIONS COST THERE'S NOTHING IN YOUR BUDGET NOW BECAUSE YOU DON'T HAVE ANY BOARD OF DIRECTOR ELECTIONS SCHEDULED FOR NEXT SCHOOL YEAR.
SO, SO YES, THAT HAS BEEN REMOVED.
I THINK WHAT'S CONFUSING TO EVERYBODY IS THAT TERM WHEN WE SAY BUDGET BECAUSE THERE'S NOT NECESSARILY REALLY MONEY THERE, THERE'S JUST A PLAN FOR MONEY TO BE THERE WHEN WE RECEIVE MONEY.
SO, IT'S KIND OF A SOMEONE ELSE? I HAVE A COUPLE OTHER THINGS, BUS DEPRECIATION.
SO, I'D LIKE TO GO BACK TO THAT A LITTLE BIT.
SO, WOULD I BE CORRECT THEN AND TELLING SOMEONE, THIS IS HOW I WOULD EXPLAIN IT IF SOMEONE WERE ASKED, ASKED ME OKAY.
UM. WE ENDED UP HAVING TO PAY ABOUT BILL FOR ABOUT $300,000 THAT WE THOUGHT WE WERE GOING TO GET REIMBURSED FROM THE STATE FOR. AND THEY CHANGED THE RULES ON US, AND SO THAT, NOT ONLY DID WE NOW HAVE THIS NEW RULE BUT THIS NEW THING THAT WE ARE GONNA HAVE TO PAY EVERY, EVERY YEAR.
BUT WE ALSO LOST $300,000.00 IN OUR LAST YEAR'S BUDGET BECAUSE OF THIS. IS THAT CORRECT? YEAH, YEAH, SO WE RECEIVE A DEPRECIATION FOR THE BUSES AS PART OF OUR, IT'S, IT'S, IT'S A LITTLE COMPLICATED. BUT IT'S PART OF...
THE WHOLE CONTRACT AND THAT REVENUE IT'S KIND OF BAKED INTO PASSING THROUGH TO...
SO, WE WERE EXPECTING THE MONEY, BUT NOW WE DON'T GET IT.
BASICALLY, IT'S A REVENUE SHORTFALL.
WE'RE NOT GOING TO GET IT NEXT YEAR EITHER OR WHATEVER.
NEXT YEAR, NO. AND THE PROBLEM FOR US WITH CONTRACTED SERVICES IS WE BUILD OUR CONTRACT WITH THOSE SERVICE PROVIDERS BASED ON WHAT WE BELIEVE IS GOING TO HAPPEN BUDGETARILY OVER THE LENGTH OF THE CONTRACT.
SO, FOR US, WE DON'T HAVE THE OPPORTUNITY TO CHANGE THAT AGAIN UNTIL WE GO OUT TO BID AGAIN.
SURE, AND THAT'S IN GOOD FAITH BASED ON HOW THE LEGISLATURE'S BEEN WORKING. IF THEY CHANGE THE RULES MIDSTREAM, WELL, THEN WE'RE STUCK WITH IT.
SO, THIS STAFFING POSITIONS THING, AGAIN, I'M JUST TRYING TO MAKE SURE I UNDERSTAND.
THANK YOU IN MAKING THIS PRETTY SIMPLE STUFF. THANK YOU VERY MUCH.
OKAY, BECAUSE THAT'S WHAT WE KIND OF, YOU KNOW, IT'S GOT TO BE PRETTY SIMPLE FOR ALL OF US TO GET IT, YOU KNOW, BECAUSE IF IT'S NOT, IT'S VERY FRUSTRATING.
THIS BUSINESS ABOUT THE 131 STAFFING POSITIONS AND THE 137 STAFFING POSITIONS. SO, ARE WE SAYING THEN THAT IN 25-26 WE HAD A 131 PEOPLE? LIKE I SAID, I DON'T, I DON'T THINK WE'RE SAYING THIS AND I WANT TO GET IT CLEAR. WHAT WE ARE, IF I WERE TO TRY TO EXPLAIN THIS TO SOMEBODY, WE DIDN'T ACTUALLY RELEASE 131 FULL-TIME PEOPLE, OR DID WE? MORE THAN.
SO, WE RELEASED MORE THAN 131 FULL-TIME PEOPLE.
WELL, WHEN YOU SEE AN FTE NUMBER, THAT MEANS FULL-TIME EQUIVALENT. THAT IS ASSUMING FOR TEACHERS THAT IT'S SEVEN AND A HALF HOURS A DAY, 180-DAY CONTRACT.
FOR A CLASSIFIED PERSON, FULL-TIME IS 5 DAYS A WEEK AT 40 HOURS A WEEK, AND IT'S YEAR-ROUND. BUT MANY OF OUR CLASSIFIED EMPLOYEES ONLY ARE SCHOOL-YEAR-ONLY EMPLOYEES, SO THEY MAY WORK 9 MONTHS, THEY MAY WORK NINE AND A HALF...
YOU SEE, AGAIN, I THINK THE AVERAGE PERSON THINKS IN TERMS OF A FULL-TIME JOB.
AND THEY DON'T PUT WHATEVER ON IT, THEY JUST, A FULL-TIME JOB.
AND I WOULD THINK TEACHERS ARE WORKING FULL-TIME.
MOST TEACHERS, I THINK THAT'S RIGHT.
I DON'T THINK IN FTES OR WHATEVER.
I HAVE A STAFFING UPDATE, TOO, IN HERE, SO WE CAN KIND OF LOOK AT THAT, TOO.
WELL, THEN I DON'T NEED TO PROLONG THIS, BUT WE'RE SAYING THAT WE ACTUALLY LET GO OF MORE THAN 131 FULL-TIME PEOPLE.
WHEN WE DID OUR RRIF RESOLUTION, NOW, WHAT WE BROUGHT BACK IS DIFFERENT BECAUSE YOU HAVE ATTRITION THAT HAPPENS AFTER THAT.
PEOPLE RETIRE AND RESIGN, AND THEN SOME OF THOSE PEOPLE END UP GETTING THEIR JOBS BACK.
BUT, YES ON OUR RRIF RESOLUTION, THOSE ARE THE NUMBERS THAT THE BOARD APPROVED FOR US TO DO A REDUCTION IN FORCE IN ORDER TO MEET THE NEW NEEDS OF THE NEW BUDGET GOING INTO THE NEXT FISCAL YEAR.
I HAVE OTHER QUESTIONS ABOUT THAT, BUT I WON'T.
[00:20:01]
I HAVE ANOTHER QUESTION, BUT WE'LL GO ON.SO, WE HAVE FOUR FUNDS IN THIS DISTRICT.
THERE ARE MULTIPLE FUNDS THAT YOU CAN HAVE WITHIN SCHOOL DISTRICTS, LIKE A TRANSPORTATION VEHICLE FUND.
WE HAVE GENERAL FUND, WHICH INCLUDES OUR TEACHING ACTIVITIES AND SUPPORT, OUR BUILDING SUPPORT, AND DISTRICT-WIDE SUPPORT.
SO, THAT'S JUST THE MAIN OPERATIONS OF THE SCHOOL DISTRICT.
YOU HAVE YOUR ASB, THE ASSOCIATED STUDENT BODY FUND, WHICH IS GOING TO BE THE ATHLETICS AND STUDENT-LED CLUBS AND ACTIVITIES.
THOSE ARE GOING TO BE THE STUDENT-LED ITEMS THROUGH THE ASB.
WE HAVE OUR CAPITAL PROJECTS FUND, WHICH IS WHERE WE RUN ALL OF OUR MAJOR REPAIRS AND IMPROVEMENTS, PURCHASE OF FACILITY, AND THAT'S WHERE OUR IMPACT FEES WILL GO THROUGH THAT.
AND, UM, THEN, ALSO, OUR CAPITAL LEVY IS WITHIN THE CAPITAL PROJECTS FUND.
AND WE ALSO HAVE A DEBT SERVICE FUND, AND WE HAVE JUST A SMALL LOAN IN, IN THAT DEBT SERVICE FUND.
SO, I'M GOING TO START WITH GENERAL FUND, AND WE'RE GOING TO GO THROUGH ENROLLMENT, WE'RE GOING TO GO THROUGH REVENUE, WE'RE GOING TO GO THROUGH STAFFING, WE'RE GOING TO GO THROUGH EXPENDITURES, AND FUND BALANCE.
SO, UM, YOU'VE HEARD ME SAY THIS BEFORE MANY TIMES, THAT ENROLLMENT IS VERY IMPORTANT BECAUSE IT DRIVES OUR FUNDING FOR STAFFING, MATERIALS, SUPPLIES, AND OPERATING COSTS, AND FUNDING IS BASED ON A STUDENT'S ACTUAL TIME IN SCHOOL.
SO, IT'S A FULL-TIME EQUIVALENT THAT THEY'RE IN.
SO, NOT THE NUMBER OF STUDENTS THAT ARE ENROLLED IN THE DISTRICT.
SO, THE ASSUMPTIONS THAT WE USED WHEN WE PREPARED THIS BUDGET IS RETENTION WOULD BE 100% FROM THE 25-26 SCHOOL YEAR.
OUR ALE PROGRAM, ALTERNATIVE LEARNING, WE HAD A SLIGHT INCREASE IN ENROLLMENT FOR RIVER HOME LINK WITH A RELOCATION OF BGVA BECAUSE WE KNEW THAT THAT WOULD OPEN UP SOME SPACE THAT WAS PART OF THE, THE KIND OF THE THOUGHT PROCESS IS TO BE ABLE TO EXPAND A LITTLE BIT OF THE RIVER HOME LINK.
AND THEN, KINDERGARTEN, WE PROJECT IT CONSERVATIVELY SINCE IT'S UNKNOWN HOW MANY WILL ENROLL, BUT WE DO HAVE BIRTH RATES, AND WE CAN TELL BASED ON PREVIOUS BIRTH RATES THE PERCENTAGE OF STUDENTS THAT HAVE COME INTO THE DISTRICT FROM THOSE BIRTH RATES.
AND SO, WE CAN KIND OF SEE WHAT'S HAPPENING, AND BATTLEGROUND SCHOOL DISTRICT IS ACTUALLY HAS HAD REALLY STABLE, IF NOT GROWING, BIRTH RATES FOR, UM, FOR OUR SCHOOL DISTRICT.
THAT IS NOT THE CASE IN MANY OTHER DISTRICTS, UM, FOR ENROLLMENT.
SO, RUNNING START IS AN ALLOCATION THAT'S PASSED THROUGH DIRECTLY TO HIGHER EDUCATION INSTITUTIONS.
SO, THAT'S JUST AN ESTIMATE THAT WE THINK BASED ON SOME OF THE HISTORICAL ENROLLMENT THAT WE SEE.
AND THEN, TRANSITION TO KINDERGARTEN, THE ENROLLMENT WAS ADJUSTED DOWNWARD PER THE STATE ALLOCATION CUT.
SO, THOSE WERE KIND OF THE ASSUMPTIONS THAT WENT IN TO ENROLLMENT.
SO, WE DO HAVE DIFFERENT CATEGORIES OF ENROLLMENT THAT I WANT TO EXPLAIN.
WE HAVE OUR COMPREHENSIVE SCHOOLS, WHICH OUR STUDENTS ARE ATTENDING PRIMARY, MIDDLE, AND HIGH SCHOOL IN A TRADITIONAL LEARNING ENVIRONMENT.
OUR ALE PROGRAMS ARE STUDENTS ATTENDING LIKE BATTLEGROUND VIRTUAL ACADEMY, CAM, RIVER HOME LINK, AND SUMMIT VIEW.
THOSE ARE, THOSE ARE CONSIDERED ALE PROGRAMS, AND THEY HAVE A DIFFERENT FUNDING STRUCTURE THAN OUR, THEY'RE NOT UNDER THE PROTOTYPICAL FUNDING FORMULA.
THEY'RE UNDER A, A DIFFERENT, LIKE A FLAT AMOUNT ENROLLMENT FUNDING.
OPEN DOORS IS A RE-ENGAGEMENT PROGRAM FOR HIGH SCHOOL STUDENTS.
AND THEN, AGAIN, RUNNING START IS BASED ON FULL AND PART-TIME STUDENTS ATTENDING COLLEGE.
AND IT'S IMPORTANT, AND I, I DID ENROLLMENT A COUPLE OF DIFFERENT WAYS.
I DID IT BASED ON THE DOCUMENT, BECAUSE THE DOCUMENT, THE BUDGET DOCUMENT, WE'RE NOT DONE WITH THE FISCAL YEAR FOR 25-26.
AND THEN, WE DON'T, WE CLOSE AND WE'LL BE, UM, A PREPARING THE END OF THE YEAR REPORTS IN NOVEMBER.
SO, I PREPARED SOME ENROLLMENT INFORMATION BASED ON BUDGET TO BUDGET, WHICH IS IN THE DOCUMENT.
AND THEN, I HAVE ALSO SOME INFORMATION ON ACTUAL TO BUDGET.
SO, THE FIRST TABLE HERE IS SHOWING AN INCREASE OF 118 FTE FOR COMPREHENSIVE AND ALE.
AND SO, THAT'S REALLY WHAT WE'RE LOOKING.
[00:25:01]
THE TRANSITION TO KINDERGARTEN, OPEN DOORS, AND RUNNING STARTS, YOU KNOW, THOSE ARE KIND OF MORE CATEGORICAL PROGRAMS. SO, LOOKING AT THE TWO MAIN ENROLLMENTS THAT WE LOOK AT, THE ALES, IT DOES SHOW A CHANGE IN BUDGET OF 118.BUT AS YOU KNOW, 25-26, BECAUSE WE BUDGET CONSERVATIVELY, WE DID COME IN AT OVER BUDGET.
AND OUR, SO OUR BUDGET, OUR ACTUAL ENROLLMENT IN 25-26 WAS GREATER THAN BUDGET.
IN THE DOCUMENT, IT'S, IT'S KIND OF WONKY.
SO, I HAD TO PUT A LINE HERE THAT SAYS TOTAL ENROLLMENT PER F-195.
THAT'S BECAUSE THAT THEY'VE INCLUDED TRANSITIONAL KINDERGARTEN IN 24-25 WAS INCLUDED IN THE NUMBER.
BUT THEY, STARTING IN 25-26, BECAUSE THEY CHANGED IT OUT OF BASIC EDUCATION AND CHANGED IT OUT OF THE CATEGORY WHERE IT'S NO LONGER CONSIDERED A BASIC EDUCATION AS MORE OF A KIND OF A GRANT OR CATEGORICAL.
SO, IT LOOKS REALLY WONKY ON THE F-195 BECAUSE YOU SEE 12,582 AND THEN YOU GO TO 12,187.
SO, YOU HAVE TO KNOW THAT, UM, TRANSITIONAL KINDERGARTEN IS, I PUT THE NUMBERS DOWN BELOW SO THAT YOU COULD, YOU COULD SEE THE DIFFERENT NUMBERS ON THAT.
IS THERE ANY QUESTIONS ON THAT TABLE? OKAY.
I WILL GO ON TO THE NEXT TABLE.
IN THIS ONE, I JUST WANTED TO SHOW YOU BY GRADE BANDS IN OUR COMPREHENSIVE.
SOMETIMES THAT INFORMATION IS IMPORTANT ON UNDERSTANDING KIND OF HOW THIS SHIFT OF STUDENTS, YOU KNOW, IN YOUR PRIMARY SCHOOLS, YOUR MIDDLE SCHOOLS, AND YOUR HIGH SCHOOLS.
SO, WE ARE CURRENTLY IN OUR K-4 PRIMARIES.
WE HAVE 66, WE ARE REDUCING 66 FTE IN BUDGET.
OUR MIDDLE SCHOOL HAS A BIG BUMP OF 96 AND OUR HIGH SCHOOL DOWN 78.
SO, THE NET IS 48 IN OUR COMPREHENSIVE SCHOOLS BASED ON THOSE GRADE BANDS.
AND THEN THE ALE'S INFORMATION IS REPEATED THAT WE'RE GROWING IN OUR ALE PROGRAMS IN BUDGET.
SO, AGAIN, THIS IS BUDGET TO BUDGET.
THE NEXT TABLE THAT YOU'LL SEE IS OUR ACTUAL ENROLLMENT FOR 25-26.
THERE'S ACTUALLY A DECREASE BECAUSE WE'RE BUDGETING CONSERVATIVELY AND IT'S DIFFICULT TO UNDERSTAND WITH THE, WITH THE LEVY LOSS, THE NON-RENEWAL OF THE LEVY.
BUT IN THE PAST, OUR ENROLLMENT HAS EXCEEDED BUDGET EXPECTATIONS.
SO, THE HOPE IS THAT EVEN THOUGH WE BUDGETED, UM, CONSERVATIVELY, THAT WE WILL COME IN OVER BUDGET IS THE IDEA, IS THE THOUGHT.
AND WE DO HAVE INFORMATION ON OSPI PROVIDES SOME HEAD COUNT DEMOGRAPHY INFORMATION ON COHORT SURVIVAL THAT WE CAN LOOK AT SOME REPORTS.
AND WE ALSO, AGAIN, LIKE WE HAVE THE BIRTH RATE INFORMATION.
AND THEN JUST LOOKING AT OUR TRENDS IN ENROLLMENT.
SO, WE TRY TO DO OUR VERY BEST TO TRY TO MAKE SURE THAT WE'RE NOT OVER-PROJECTING ENROLLMENT, BECAUSE IF YOU OVER-PROJECT, THEN YOU OVER-STAFF.
AND THEN YOU HAVE YOURSELF IN A SITUATION WHERE YOU MAY NOT BE ABLE TO UTILIZE ALL THE STAFFING THAT YOU'VE ALLOCATED, UM, IF YOUR ENROLLMENT IS OVER-PROJECTED.
IS THERE ANY QUESTIONS THAT I CAN ANSWER ON THAT? DO YOU USE, UM, THE BUILDING, COMMUNITY BUILDING PERMITS ALSO FOR THE PEOPLE THAT ARE BUILDING, DOES ANY OF THAT HELP? THAT INFORMATION, UM, OUR, WHEN WE DO, DO OUR CAPITAL FACILITY PLAN UPDATES AND WE DO HIRE A DEMOGRAPHER TO USUALLY DO THAT INFORMATION, THERE'S A LOT OF WORK THAT GOES INTO WITH PERMITS AND BUILDING AND WHEN WILL THOSE STRUCTURES, IT'S, IT'S VERY COMPLICATED AND THEY, THEY ARE ABLE TO DO IT VERY QUICKLY, SO THEY WORK WITH THE COUNTY EXTRACTING THAT INFORMATION.
SO, IT'S JUST, IT'S JUST, SO I DO NOT DO THAT, WE DO LEAVE THAT FOR THE DEMOGRAPHERS TO DO WHEN WE DO HIRE THEM AND WE HAVEN'T HIRED THEM SINCE OUR LAST CAPITAL FACILITY PLAN UPDATE.
IT WAS ACTUALLY RIGHT AFTER OUR CAPITAL FACILITY PLAN UPDATE BECAUSE WE HAD TO GET IT DONE. SO.
THAT'S BEEN HOW MANY YEARS AGO? IT HAS BEEN.
THE NUMBERS HERE FOR THE COMPREHENSIVE SCHOOLS UNDER ACTUAL ENROLLMENT, 25-26, THAT'S WHAT IT IS? UH-HUH.
[00:30:01]
OKAY.SO AGAIN, I MAY BE READING IT WRONG, PLEASE CORRECT ME, OKAY, BUT WHAT I'M UNDERSTANDING YOU SAYING, FOR GOOD REASON, IS HOW WE TRY TO BUDGET IN, IN ANTICIPATION OF NOT OVERSTAFFING AND THIS KIND OF THING, OKAY? UH-HUH.
SO, THE ACTUAL ENROLLMENT FOR COMPREHENSIVE SCHOOLS WAS 99-05.
AND WE DON'T HAVE AN ACTUAL YET FOR 26-27 BECAUSE WE DON'T HAVE THAT UNTIL LATER IN THE FALL.
BUT SHOULDN'T WE HAVE A PRETTY GOOD IDEA AS TO WHETHER OR NOT WE'RE GOING TO COME IN OVER THE 99-05 OR NOT? SO THAT IS WHERE WE CURRENTLY SIT, IS OUR AVERAGE ANNUAL ENROLLMENT.
FOR WHAT? FOR 25-26. FOR OKAY, SO FOR 20- YEAH.
SO FOR 26-27, WE BUDGETED- YEAH, THAT'S WHAT WE'RE BUDGETING FOR NEXT YEAR, FOR NEXT SCHOOL YEAR, THAT'S WHERE WE THINK THAT ENROLLMENT WILL COME IN.
SEE, I'M GETTING THESE YEARS ALL MIXED UP, OKAY.
SO, THE 97-35 IS LESS THAN, OKAY, THAT MAKES SENSE, YOU ANSWERED MY QUESTION.
SO, WE'RE PROJECTING THAT WE'RE ACTUALLY GOING TO LOSE STUDENTS.
PARTLY, PARTLY BECAUSE WE HAVE A LARGE 12TH GRADE GROUP LEAVING US, THAT'S PART OF THE REASON.
AND THEN THE OTHER THING IS WE'RE JUST TRYING TO BE CONSERVATIVE SO THAT WE DON'T GET OURSELVES IN TROUBLE FINANCIALLY BY BEING OVER.
IF WE'RE OVERSTAFFED, THEN WE HAVE PEOPLE THAT WE NEED TO EMPLOY.
WE'VE ALREADY GOT A CONTRACT AND WE'RE- YOU CAN'T REDUCE NOW UNTIL THE 27-28.
IT'S EASIER TO ADD THAN IT IS I MEAN, WE TRY TO DO OUR BEST.
I MEAN, WE WANT TO TRY TO- RIGHT.
TO START OFF ON AN APPROPRIATE LEVEL OF STAFFING.
BUT YOU JUST, YOU HAVE TO BE CAREFUL.
AND HONESTLY, WITH THE SITUATION THAT WE ARE IN, IT IS DIFFICULT TO UNDERSTAND WHETHER WE, YOU KNOW, WILL COME IN ON BUDGET.
I MEAN, IT'S, IT'S SOMETHING WE'RE GOING TO HAVE TO- AND IT WILL BE A DIFFERENT STRATEGY THIS YEAR.
WE MAY HAVE CLASSES THAT WE ACTUALLY START WITH A SUB BECAUSE WE WON'T KNOW UNTIL THE FOURTH DAY OF SCHOOL IF THOSE, IF THOSE THINGS ARE ACCURATE BECAUSE THAT IS COUNT DAY.
IN SEPTEMBER IS THE FOURTH SCHOOL DAY IN SEPTEMBER IS COUNT DAY. SO, WE, WE MAY START SOME OF THOSE CLASSROOMS AND WHEN I SAY SUBS WE HAVE PEOPLE ON THE RIFF LIST THAT WE COULD USE. SO, THEIR STAFF MEMBERS THAT WE HAVE WHICH IS A BLESSING AND THEN IF WE END UP QUALIFYING.
YEAH, THEY'RE QUALIFIED DEFINITELY QUALIFIED. SO, BUT THAT IS DIFFERENT, OFTENTIMES WE MAKE SOME OF THOSE STAFFING DECISIONS BEFORE SCHOOL RIGHT UP TILL SCHOOL STARTS BUT WE DO OFTEN MAKE IT BEFORE SCHOOL STARTS BUT THIS YEAR WE'LL PROBABLY NOT BE DOING THAT UNLESS IT'S A VERY UNIQUE POSITION THAT WE WOULDN'T HAVE A QUALIFIED PERSON FOR. AND AS YOU CAN SEE OUR ALE PROGRAM IS GROWING AND THAT OVERALL.
I HAVE A QUESTION JUST TO CLARIFY, MAKE SURE I UNDERSTAND, UM, YOU SAID THAT THE, IT'S NOT THE NUMBER OF STUDENTS WHO ARE ENROLLED LIKE THE KIDS WHO ARE, LIKE SAY, HEY I'M GOING TO THIS SCHOOL. IT'S ACTUALLY THEIR ATTENDANCE. IS THAT CORRECT? THAT IS CORRECT.
SO, IF WE HAVE KIDS THAT AREN'T COMING TO SCHOOL THEN IT'S GOING TO DIRECTLY AFFECT OUR BUDGET THAT WE'RE ALREADY HAVING A STRUGGLE IN AND I WANT TO MAKE SURE I, I CLARIFY THAT BECAUSE I THINK IT'S REALLY IMPORTANT FOR FAMILIES AND PARENTS AND KIDS TO UNDERSTAND IF THEY WANT TO HELP THE DISTRICT THEN THEY NEED TO COME TO SCHOOL.
RIGHT, WE HAVE A 20-DAY LIMIT IF THERE'S ABSENCES OVER 20 DAYS THEN THEY ARE, HAVE TO BE UNENROLLED.
THAT'S DURING THE SCHOOL YEAR.
ON THE FOURTH DAY OF SCHOOL IF THEY HAVE NOT SHOWN UP YEAH.
WE HAVE TO TAKE THEM OFF THE BOOKS.
LOOKING AT THE PREVIOUS CHART FOR THIS WHOLE ENROLLMENT THING.
WHAT AM I NOT UNDERSTANDING HERE BECAUSE IN THE PREVIOUS IT HAS BROKEN DOWN BY PRIMARY, MIDDLE AND HIGH. IT SAYS THE ACTUAL FOR 24-25 AND THEN IT SAYS BUDGETED FOR 25-26, 09,783.
FOR LAST YEAR. SO, REMEMBER ANS SO, THE ACTUAL THERE'S BUDGET TO BUDGET AND THEN THERE'S ACTUAL TO BUDGET.
THE ACTUAL DOWN BELOW IS 9905.
BUT THE ACTUAL NUMBER IS 9905 AM I READING THAT CORRECT? THAT'S CORRECT.
YEP. ALL RIGHT, MOVING ON TO SOURCES OF REVENUE. SO, NOW WE'RE ON THE NEXT PAGE AND WE ARE GOING THROUGH OUR REVENUE FUNDING.
[00:35:02]
SO, THIS PIE GRAPH LOOKS A LOT DIFFERENT THAN IT HAS IN THE PAST BECAUSE GENERALLY AN EP&O LEVY WOULD BE AT LEAST 13 PERCENT OF YOUR PIE GRAPH. NOW OUR RELIANCE ON STATE FUNDING IS INCREASED TO 91.3 %, UM, BETWEEN OUR GENERAL PURPOSE AND OUR STATE AND OUR SPECIAL PURPOSE IN STATE AND WE'LL GO THROUGH EACH ONE OF THOSE AND KIND OF TALK ABOUT THOSE. SO, WE, THERE IS SOME ROUNDING IN THE PIE GRAPH SO FORGIVE THE, THE POINT ONE THAT IT'S OFF BUT, UM, SO THE FIRST THING IS, IS WE DO HAVE A SMALL SMIDGE OF EP&O LEVY THAT'S LONG, THAT'S, THAT WAS STILL BEING COLLECTED THAT'S STILL COMING IN SO THERE'S A VERY SMALL, SMALL AMOUNT OF EP&O LEVY TAXES BUT OUR, THE, THE, LARGEST SHARE IS OUR STATE GENERAL PURPOSE AND THAT IS BASIC EDUCATION FOR STAFFING, MSOC, CTE, RUNNING START, OPEN DOORS, SPECIAL EDUCATION.SO THOSE ARE THE COMPONENTS THAT ARE INCLUDED IN THE STATE GENERAL PURPOSE, UM, ALLOCATION.
WHEN YOU GET TO THE STATE SPECIAL PURPOSE WHICH IS 26.4%, YOU'RE LOOKING AT TRANSITIONAL KINDERGARTEN, SPECIAL IT ALSO INCLUDES SPECIAL EDUCATION, OUR LEARNING ASSISTANCE PROGRAM, BILINGUAL PROGRAM, HIGH CAP (ASPIRE)TRANSPORTATION.
SO, THAT'S KIND OF THE SPECIAL PURPOSE.
ALLOCATION IS IN THERE. THE FEDERAL SPECIAL PURPOSE INCLUDES ALSO SPECIAL EDUCATION, FOOD SERVICE, OUR TITLE PROGRAMS AND OTHER GRANT PROGRAMS. AND THEN WE HAVE OUR LOCAL NON TAX WHICH IS 2.5% WHICH IS DONATION CAPACITY, PRESCHOOLS, OTHER SCHOOL FEES, INTEREST PAID, SCHOOL MEALS, FACILITY RENTALS, COMMUNITY EDUCATION.
ALL OF THOSE GO INTO THAT LOCAL, AH, AH, BUCKET AND THEN YOU ALSO HAVE YOUR REVENUE FROM OTHER SCHOOL DISTRICTS AND THAT IS, UM, AND OTHER ENTITIES.
SO, WE ALSO HAVE TRANSFERS IN FROM IT LOOKS LIKE WE SHOWED TRANSFERS IN FROM CAPITAL PROJECTS BUT THAT WOULDN'T, I DON'T THINK THAT SHOULD BE IN THERE. I THINK THAT'S, I'LL HAVE TO LOOK AT THAT.
SO, BUT WE HAVE IF WE HAVE AN ESD INSURANCE REBATE WE WERE RECEIVING NON HIGH SERVING, UH, FEES FOR SERVING GREEN MOUNTAIN SCHOOL DISTRICT AND I TALKED ABOUT THAT LATER BUT WE ARE NO LONGER WITHOUT A LEVY YOU ARE NOT ELIGIBLE TO COLLECT THOSE FUNDS.
YOU'RE ALSO NOT AH ELIGIBLE WITHOUT A LEVY TO COLLECT, UM, STATE FOREST FUNDS. SO THAT'S ABOUT, STATE FOREST FUNDS IS ABOUT TWO HUNDRED FIFTY THOUSAND AND IT DEPENDS ON, AGAIN, IT COULD BE A MILLION DOLLARS.
WE DON'T KNOW WHAT THAT IS BECAUSE IT DEPENDS ON THE CELLS THAT ARE HAPPENING WITH TIMBER CELLS AND WHAT THEY'RE HARVESTING AND WHERE IT'S COMING IN.
SO, WE COULD BE OUT A LOT OF MONEY, NO MONEY BECAUSE IT'S JUST DIFFICULT TO, BECAUSE YOU HAVE TO WAIT TILL THE, THE PRODUCT IS SOLD AND SOME THINGS ARE GOING ON.
SO, UM, WE DO HAVE A TRANSFER FOR OTHER FINANCING SOURCES.
WE HAVE A TRANSFER FROM OUR CAPITAL LEVY, TRANSFER FOR TECHNOLOGY. SO THAT'S ONLY CERTAIN THINGS CAN BE CHARGED TO THE CAPITAL PROJECTS FUND FROM OUR CAPITAL LEVY TECHNOLOGY DOLLARS THAT WE HAD PLANNED. SO, WE HAD TO TRANSFER THOSE FUNDS FROM CAPITAL PROJECTS INTO THE GENERAL FUND.
SO, YOU CAN SEE THERE'S A TABLE HERE THAT, THAT ALSO EXPLAINS THE DIFFERENT PERCENTAGES THAT WE HAVE AND THE DOLLAR AMOUNT.
SO, OUR TOTAL REVENUE IS $212,992,846. AND THEN I'VE INCLUDED A BUDGET OVER BUDGET BECAUSE THIS AGAIN MATCHES THE F-195 OF SOME CHANGES THAT YOU'LL SEE IN THE REVENUE SOURCES. YOU WILL SEE LOCAL TAXES OF $14.7 MILLION DOLLAR DECREASE. YOU CAN SEE THAT WE DID RECEIVE FOR MAINTENANCE FROM THE STATE THROUGH IPD ENROLLMENT. WE RECEIVED ADDITIONAL FUNDING FOR GENERAL PURPOSE AND SPECIAL PURPOSE. AND A LOT OF THAT, TOO, WAS OUR SPECIAL EDUCATION, UM, NUMBERS. YOU REMEMBER THE GRAPH CHART, THE ENROLLMENT CHART OF SPECIAL EDUCATION? YOU CAN SEE THAT NUMBER GOING UP.
WELL, THAT IS ALL IN NOW THAT THE BUDGET'S COMING IN. IT, IT'S GREATER. YOU'LL SEE FEDERAL AND LOCAL. THAT IS SOME CONTINGENCY THAT WE TOOK OUT.
[00:40:02]
NOW, I WANT TO TALK ABOUT CONTINGENCY.CONTINGENCY IS BUDGETED ON THE REVENUE AND EXPENDITURE SIDE BOTH.
THEY ARE PLACEHOLDERS FOR DONATIONS, GRANTS, AWARDS. WE HAD, YOU KNOW, HAD A HEALTHY CONTINGENCY FUND.
WE DIDN'T FEEL THAT, THAT WAS REALLY NECESSARY TO CONTINUE AS HEALTHY SO WE TOOK SOME FUNDING THAT WE PUT IN EACH ONE OF THOSE BUCKETS AND TOOK IT OUT ON THE REVENUE AND EXPENDITURE SIDE.
IT DOESN'T AFFECT IT BUT YOU HAVE TO MAKE SURE YOU HAVE REVENUE IF YOU'RE GOING TO SPEND THE MONEY.
SO THOSE, THAT'S, THAT'S OUR KEY TO MAKING SURE THAT WE'RE STAYING ON TRACK WITH THAT CONTINGENCY FUND.
BUT WE DID REMOVE THOSE, SO THAT'S WHY IT LOOKS LIKE THAT THE FEDERAL SPECIAL PURPOSE DID GO DOWN AND SOME OF THAT FEDERAL SPECIAL PURPOSE WAS THE AWARE GRANT, BECAUSE THE AWARE GRANT HAS BEEN, NOT BEEN BUDGETED.
AND THEN YOU CAN SEE WE INCREASED OUR TRANSFER IN OTHER FINANCING SOURCES.
WE INCREASED OUR TRANSFER REALLY REVVING UP SOME OF THE WORK THAT WE'RE DOING IN OUR TECHNOLOGY.
AND ON THE NEXT PAGE, WE DO HAVE SOME NOTABLE REVENUE CHANGES, WHICH I'VE ALREADY TALKED ABOUT, WHICH IS, AS YOU KNOW, THE EP&O LEVY FOR 25-26 WAS ONLY A HALF-YEAR COLLECTION OF $14.7 MILLION.
SO THAT WAS NOT A FULL COLLECTION OF A FULL LEVY COLLECTION.
SO THAT WAS THE, THE EXPIRATION OF THE 25 LEVY, AND SO IN 26 WE DIDN'T, WE DIDN'T HAVE ANY LEVY REVENUES.
SO, WE HAVE A FULL YEAR WITHOUT THE LEVY FOR THE, FOR 26. SO GOING INTO THE 26-27 SCHOOL YEAR, THIS BUDGET HAS BEEN BUILT WITHOUT A LEVY AT THIS TIME.
WE DON'T HAVE THOSE, IT'S UNKNOWN, SO WE CANNOT, UM, RESPONSIBLY BUDGET FOR, UM, THOSE FUNDS UNTIL THEY ARE KNOWN.
AND OUR STATE GENERAL PURPOSE, AGAIN, WE HAD IPD, WHICH IS THE INFLATIONARY INCREASE FOR THE FUNDED, THE STATE-FUNDED SALARIES THAT ARE FUNDED BY THE STATE, AND MATERIAL SUPPLIES AND OPERATING COSTS, SO, AND WE'RE GOING TO, WHEN WE GET TO EXPENDITURES, THAT 2.6 MILLION IS GOING TO COVER SOME OF THE EXPENDITURES THAT WE HAVE.
THERE WAS A 5.1 INCREASE FOR STATE-FUNDED HEALTH CARE BENEFITS.
SO, WHEN WE HAD HEALTH CARE BENEFITS FOR UNFUNDED STAFF, THAT ALSO, WE ABSORBED THAT 5.1% INCREASE IN THE COST OF THOSE, UM, HEALTH CARE BENEFITS.
WE HAD A DECREASE OF THE STATE FOREST FUNDS, WHICH WE ALREADY TALKED ABOUT, AND WE OVERALL, JUST BECAUSE OF THE WAY EVERYTHING KIND OF SHOOK OUT WITH SPECIAL EDUCATION, BECAUSE THAT'S A LITTLE, JUST A TOUCH HIGHER OF AN ALLOCATION, OUR OVERALL, PER PUPIL BASIC EDUCATION GUARANTEE PER STUDENT WENT UP ABOUT 2.8%.
AND AGAIN, THAT'S JUST, THAT'S NOT, THAT'S FOR OUR STAFFING AND FOR MSOCS AND MATERIALS.
ON THE STATE SPECIAL PURPOSE, AGAIN, WE HAD A DECREASE FOR THE TRANSITIONAL KINDERGARTEN.
WE HAD A DECREASE FOR THE TRANSPORTATION FUNDING DECREASE.
SO, OUR REVENUE DECREASED, AND, BUT WE DID HAVE INCREASES BECAUSE WE HAD A HIGHER SPECIAL EDUCATION ENROLLMENT AND SAFETY NET FROM THE PRIOR BUDGET.
SO AGAIN, ON THE FEDERAL SPECIAL PURPOSE, WE HAD THE AWARE GRANT, AND THEN WE DID PUT IN SOME CARRYOVER, SOME TITLE I FUNDS. NORMALLY, WE DON'T BUDGET CARRYOVER NECESSARILY, BUT TITLE FUND ONES, TITLE, TITLE FUNDS ARE NOT COLLECTED UNTIL THEY'RE ACTUALLY CLAIMED.
SO, OUR LAP AND CTE FUNDS, WE RECEIVE THOSE, AND SO THOSE GO INTO KIND OF A RESTRICTED FUND BALANCE, AND THAT WE CAN USE THOSE IN THE NEXT YEAR THROUGH THE FUND BALANCE.
BUT WE DON'T, WE DON'T DO THAT FOR THE TITLE FUNDS.
SO, THEY, THIS IS THE FIRST TIME WE REALLY, YOU KNOW, SAID, OKAY, WE'RE GOING TO REALLY MAKE SURE WE GET THIS INTO BUDGET, THIS REVENUE, BECAUSE IT'S PAYING FOR SOME OF OUR EXPENDITURES FOR NEXT YEAR.
THAT'S PART OF THE STRATEGY TO TRY TO MITIGATE SOME OF THE CUTS THAT WE'VE ALREADY MADE.
AND THEN WE HAD THE DECREASE IN INTEREST INCOME.
WHEN YOUR FUND BALANCE IS GOING FROM $25 MILLION DOWN, AND YOU'RE LOSING A LOT OF INTEREST, WE WERE RUNNING $900,000 FOR INTEREST REVENUE THAT WE WERE RECEIVING FROM HAVING THAT FUND BALANCE.
AND NOW WE'RE LOOKING ONLY AT ABOUT $500,000.
SO, IT'S A, IT'S A BIG DECREASE.
[00:45:02]
AND THEN AGAIN, THE $40,000 FOR THE NOT, WE'RE STILL SERVING THE GREEN MOUNTAIN STUDENTS, BUT WE'RE NOT ABLE TO BILL THEM FOR SOME OF THOSE FEES.AND I TALK ABOUT CONTINGENCY IN THAT NEXT, UM, AH, PARAGRAPH.
IS THERE ANY QUESTIONS ON REVENUE THAT I CAN ANSWER? OKAY.
I'M GOING TO MOVE ON TO STAFFING, BECAUSE I, I'M TRYING TO WATCH THE CLOCK HERE, TOO.
SO, UM, SO, AGAIN, AS SHELLY WAS POINTING OUT, WE LOOK AT FTE FOR CERTIFICATED AND CLASSIFIED.
WE HAVE TWO MAJOR BUCKETS THAT ARE LISTED ON THE F-195 DOCUMENT.
SO, YOUR CERTIFICATED IS GOING TO BE ALL OF YOUR CERTIFICATED INSTRUCTIONAL STAFF COUNSELORS, ALL OF THOSE.
AS WELL AS CERTIFICATED ADMINISTRATORS.
AND YOUR CLASSIFIED IS GOING TO BE ALL OF THE NON-CERTIFICATED AND ANY CLASSIFIED ADMINISTRATORS THAT YOU MAY HAVE.
SO, YOU CAN SEE THE REDUCTION THAT WE HAD WAS, AM, AH, IN, AND I JUST WANT TO COVER THIS REALLY QUICK BECAUSE, AND I KNOW SHELLY ALREADY COVERED IT, BUT FOR CERTIFICATED ADMINISTRATORS, THEY'RE BASED ON AN EIGHT-HOUR DAY AND IT IS, AH, THE CONTRACT CAN BE EITHER 200 DAYS, YOU KNOW, STARTING AT SOME OF OUR ASSISTANT PRINCIPALS, AND IT GOES TO A 260-DAY CONTRACT.
SO, IT JUST CAN DEPEND, YOUR 1.0 FTE DEPENDS ON YOUR CONTRACT WITH THE CERTIFICATED ADMINISTRATORS.
AND THEN, OF COURSE, YOU ALREADY TALKED ABOUT THE CLASSIFIED FTES, SO MOST OF OURS THAT ARE CLASSIFIED STAFF THAT WORK 192 DAYS.
THEY'RE USUALLY ABOUT A 0.6 FTE IS USUALLY WHAT THEY ARE.
SO, WHEN YOU LOOK AT THAT TABLE, YOU HAVE 41.87, THAT'S FULL-TIME EQUIVALENT FOR CERTIFICATE.
BUT ON THE CLASSIFIED, YOU HAVE 36.65, BUT THAT'S REALLY PROBABLY ABOUT CLOSE TO 60 POSITIONS.
BUT IN GENERAL, THAT'S ABOUT HOW MANY POSITIONS IT IS.
SO THAT'S, AGAIN, WHERE WE WERE TALKING ABOUT SOME OF THOSE POSITIONS THAT WE CUT.
NOW YOU'RE GOING TO SAY, WELL, WAIT A MINUTE, THAT DOESN'T QUITE ADD UP TO ALL OF THE POSITIONS THAT WERE IN THE RIF BECAUSE WE HAD TO ADD POSITIONS.
AND THAT WAS TO SERVE STUDENTS IN SPECIAL EDUCATION.
SO, WE ACTUALLY HAD TO ADD TEACHERS IN SPECIAL EDUCATION, AND WE HAD TO ADD PARAEDUCATORS IN EDUCATION.
SO, THERE WAS SEVERAL POSITIONS THAT WERE ADDED.
AND NOT A SMALL AMOUNT. UM,UM, THREE, THREE TEACHERS AND 15 PARAEDUCATORS WERE ADDED.
HOW MANY? FIFTEEN PARAEDUCATORS.
SO THAT'S, YOU KNOW, THAT'S, THAT ADDS UP.
SO, BUT THAT, SO THAT'S MY POINT IS THAT, YOU KNOW, WHILE YOU, YOU CAN SAY, WELL, WAIT A MINUTE, MICHELLE, YOU SAID WE WERE GOING TO CUT THIS MANY POSITIONS, BUT THEN WE HAD SITUATIONS WHERE WE HAD TO ADD POSITIONS, TOO.
SO, THERE IS MORE INFORMATION ONLINE ABOUT THE BUDGET CUTS AND STAFFING REDUCTIONS.
AND I HAVE SOME INFORMATION HERE ABOUT THAT, BUT REALLY, I'D ENCOURAGE PEOPLE TO GO AND LOOK AT THAT IF THEY WANT TO HAVE MORE INFORMATION ON HOW THOSE REDUCTIONS, AMANDA'S DONE AN AMAZING JOB OF PUTTING ALL THAT INFORMATION ON THE, ON THE WEBSITE SO THAT YOU CAN EASILY LOOK AT, AT A GLANCE, JUST KIND OF A SUMMARY, HIGH-LEVEL SUMMARY OF THAT.
I AM GOING TO MOVE ON TO EXPENDITURES.
UNLESS THERE'S ANY OTHER QUESTIONS ON STAFFING.
I JUST WANT TO MENTION WHEN IT SAYS CENTRAL ADMINISTRATION, THAT'S ALL-CENTRAL OFFICE SUPPORT, CORRECT? UH-HUH.
YEAH. SO, A LOT OF TIMES PEOPLE WILL SEE THAT AND THEY'LL THINK THAT'S LIKE DIRECTORS.
BUT IT'S PAYROLL, BENEFITS, HR, AD SUPPORT, ALL OF THOSE ROLES.
THEIR DISTRICT-WIDE ROLES IS ESSENTIALLY WHAT THEY ARE.
ALL RIGHT, SO WE ARE GONNA LOOK AT EXPENDITURES THROUGH THREE DIFFERENT LENSES, UM, BECAUSE THAT'S THE WAY THE DOCUMENT HAS THE F-195. IT LOOKS AT IT AS IN A PROGRAM FORMAT, AN OBJECT
[00:50:03]
FORMAT, AND AN ACTIVITY FORMAT, AND SO IT CAN BE A LITTLE CONFUSING, BUT YOU JUST HAVE TO KIND OF JUST, YOU KNOW, TAKE EACH ONE OF THOSE SECTIONS AND THINK OF IT LIKE YOU'RE JUST LOOKING AT IT THROUGH THIS LENS, AND THEN WE'RE GONNA LOOK AT IT A DIFFERENT WAY. AND SO, THE FIRST ONE WE'RE GONNA LOOK AT IS EXPENDITURE BY CONSOLIDATED ACTIVITY.NOW WE HAVE INDIVIDUAL ACTIVITIES WITHIN THE CONSOLIDATION OF THE ACTIVITIES. SO, WHEN YOU LOOK AT TEACHING, THERE'S SEVERAL ACTIVITIES, AND WHEN YOU LOOK AT TEACHING SUPPORT, THERE'S SEVERAL ACTIVITIES, AND THAT INFORMATION IS ALL AVAILABLE WITHIN THE DOCUMENT. SO, AS YOU CAN SEE, OUR TEACHING ACTIVITIES AND TEACHING SUPPORT IS 71.2% OF ALL OF OUR EXPENDITURES, GOES INTO TEACHING AND TEACHING SUPPORT, SO THAT INCLUDES OUR CLASSROOM TEACHERS AND SOME OF OUR EXTRACURRICULAR AND MSOCS IS ALSO INCLUDED, AND MSOCS AGAIN IS MATERIAL SUPPLIES AND OPERATING COSTS. AND SO, IT'S IMPORTANT TO KNOW THAT, THAT IT, THAT IT, WHEN WE SAY CLASSROOM TEACHERS, THAT ALSO THAT IT INCLUDES THE MATERIALS FOR THOSE. THEN ALSO THERE'S TEACHING SUPPORT, WHICH IS LIBRARY, COUNSELOR'S, PUPIL SAFETY, HEALTH SERVICES LIKE NURSING, PSYCHOLOGISTS, OTS, PTS, INSTRUCTIONAL PROFESSIONAL DEVELOPMENT, LEARNING, INSTRUCTIONAL TECHNOLOGY, AND CURRICULUM. SO, THERE'S, THERE'S A WHOLE HOST OF THINGS THAT PROVIDE THAT TEACHING SUPPORT.
NEXT IS ON THE NEXT PAGE IS OTHER SUPPORT, IS GOING TO BE TRANSPORTATION, FACILITY OPERATIONS, MAINTENANCE, GROUNDS, CUSTODIAN'S, UTILITIES, INSURANCE, INFORMATION SYSTEM, PRINT SHOP, MOTOR POOL, WAREHOUSE, AND AS YOU CAN SEE THE OTHER SUPPORT, UM, IS 19% OF THE TOTAL EXPENDITURES, AND WE'RE GOING TO LOOK AT A DIFFERENT LENS, SO YOU'LL SEE SOME DIFFERENT THINGS ON, ON SOME OF THOSE ITEMS. OUR SCHOOL ADMINISTRATION IS GOING TO BE YOUR, YOUR BUILDING ADMINISTRATORS, THAT IT'S GOING TO BE THE PRINCIPAL'S OFFICE, IT'S GOING TO INCLUDE THE ALL OF THEIR PEOPLE STAFFED WITHIN THEIR OFFICE, AND ANYONE THAT'S WORKING FOR IN THE PRINCIPAL'S OFFICE, THAT'S PART OF THE PRINCIPAL SUPPORT, UM, SO THAT IS 5.4 PERCENT OF THE EXPENDITURES. AND THEN THE CENTRAL ADMINISTRATION IS GOING TO BE YOUR BOARD OF DIRECTORS, YOUR SUPERINTENDENT'S OFFICE, BUDGET, THE BUSINESS OFFICE, THE HUMAN RESOURCES, PUBLIC RELATIONS, SUPERVISORS FOR INSTRUCTION, TRANSPORTATION, AND OPERATIONS, SO AGAIN THAT'S THE, THE SUPERVISION OF THOSE FOR INSTRUCTION, TRANSPORTATION, OPERATIONS SUPERVISION. SO, YOU'RE LOOKING AT CENTRAL ADMINISTRATION OF 4.4 PERCENT OF THE BUDGET. SO THAT IS LOOKING AT IT BY CONSOLIDATED ACTIVITY, AND AGAIN THERE'S DETAILS IN THERE ON EACH ONE OF THE ACTIVITIES IN THE DOCUMENT.
NEXT, WE'LL GO, IS THERE ANY, I'M GOING TO PAUSE JUST IF THERE'S ANY QUESTIONS? I WILL MOVE TO EXPENDITURES BY OBJECT. OKAY, SO THIS ONE IS JUST, JUST A FEW CATEGORIES, AND THIS IS BASED ON CERTIFICATED SALARIES, CLASSIFIED SALARIES, OUR EMPLOYEE BENEFITS, MATERIALS AND SUPPLIES, PURCHASE SERVICES, TRAVEL, AND CAPITAL OUTLAY. SO, THERE'S NOT TOO MANY CATEGORIES IN THIS, THEY'RE PRETTY, IT'S A VERY SHORT LIST. WHAT'S IMPORTANT TO KNOW IS OUR SALARIES AND BENEFITS ARE 76.3 PERCENT, BUT THAT DOES NOT INCLUDE ALL OF THE SALARIES AND BENEFITS FOR OUR CONTRACTED SERVICES.
WE CONTRACT FOR TRANSPORTATION AND FOOD SERVICE, AND WE WOULD BE CLOSER TO THE STATE AVERAGE OF 85 PERCENT IF THOSE OUR OWN EMPLOYEES, BUT THEY ARE CONTRACTED THROUGH OUR CONTRACT, SO WE DON'T HAVE THOSE INCLUDED.
THEY ARE INCLUDED IN PURCHASE SERVICES, AND SO WHEN WE GO TO THIS NEXT TABLE, I'M GOING TO KIND OF GIVE YOU A BREAKDOWN, BECAUSE THAT PURCHASE SERVICE CATEGORY IS VERY HIGH, AND IT IS BECAUSE OF THOSE CONTRACTED SERVICES.
SO, IN THE NEXT TABLE ON THE NEXT PAGE, YOU WILL SEE THAT THE CERTIFICATED SALARIES, YOU CAN SEE THAT OUR BUDGET IS NINETY FOUR POINT NINE MILLION DOLLARS, AND YOU CAN SEE THE REDUCTION THAT WE HAD, BECAUSE
[00:55:03]
NOT ONLY DO WE HAVE POSITIONS THAT WERE REDUCED, BUT WE ALSO HAD SOME CHANGES AND, AND, AND MORE SO IN CLASSIFIED FURLOUGH DAYS AND SOME OF THOSE THINGS, SO, SO SOME OF THOSE COST SAVINGS MAY NOT BE IN POSITIONS BUT MAY BE IN DOLLARS. SO, BUT THEN YOU HAD DOLLARS ADDED TO IT BASED ON THE NEEDS OF STUDENTS, SO YOU CAN SEE, YOU CAN SEE THE CLASSIFIED SALARIES, THE CERTIFICATED SALARIES, EMPLOYEE BENEFITS, AND THE SUPPLIES AND MATERIALS.I WANT TO TALK ABOUT PURCHASE SERVICE CATEGORY, BECAUSE THAT IS A LARGE CATEGORY. OVER HALF OF THAT IS GOING TO BE FOR TRANSPORTATION, FOOD SERVICE RIGHT OFF THE BAT. THEN YOU'RE GOING TO HAVE FUEL IS ONE POINT FIVE MILLION, INSURANCE IS 2.7 MILLION, UTILITIES IS 4.7 MILLION DOLLARS.
SO, YOU'RE GOING TO SEE THAT WOW THAT'S A LOT OF MONEY FOR PURCHASE SERVICES, BUT IT INCLUDES ALL OF THOSE SERVICES THAT THE DISTRICT HAS TO GET, SO THERE'S IT, IT COULD BE, IT LOOKS ODD I GUESS IN A SENSE. SO I DID WANT TO MENTION THAT IN THE CLASSIFIED SALARIES, THAT DOES INCLUDE 1.5 MILLION DOLLARS FOR EXTRACURRICULAR COACHING SALARIES THAT ARE ALSO INCLUDED. SO THOSE ARE GOING TO BE ALSO INCLUDED. SO THIS IS ALL EVERYTHING THAT WE'RE PLANNING ON SPENDING. SO, WE HAVE JUST A, WE REDUCE TRAVEL, WE REDUCE CAPITAL OUTLAY, AND IN SOME OF THAT, SOME OF THAT TRAVEL EXPENDITURE, SOME OF THAT IS REQUIRED THROUGH OUR TITLE FUNDING SOURCES. SO, SOME OF THAT IS ACTUALLY WE HAVE TO COMPLY WITH SOME OF THE REQUIREMENTS ON, ON SOME OF THESE EXPENDITURES, BECAUSE IT'D BE VERY EASY TO SAY LET'S PUT A ZERO THERE, BUT WE CAN'T BECAUSE WE HAVE, WE DO HAVE CERTAIN THINGS THAT WE NEED TO HAVE SET ASIDE FOR THOSE. SO, THE NOTABLE EXPENDITURE CHANGES, AGAIN WE TALKED ABOUT THIS EARLIER, IS THE STUDENT TRANSPORTATION AND HAVING THE TWO MILLION IN UNFUNDED CONTRACTOR BENEFITS WHICH WAS MANDATED, OUR FUEL COSTS, WE BROUGHT UP THIRTY-NINE-POINT FOUR PERCENT, THREE HUNDRED, WHICH WAS A TOTAL OF THREE HUNDRED FORTY-FIVE THOUSAND, IT'S, IT'S A ONE POINT FIVE-MILLION-DOLLAR BUCKET, BUT WE BROUGHT IT UP THREE HUNDRED FORTY-FIVE THOUSAND DOLLARS.
IT'S ACTUALLY 1.2 FOR JUST BUSES. WE HAVE MOTOR POOLS TOO AND WAREHOUSE AND OTHER, OTHER FUEL COSTS THAT WE HAVE FOR OUR WHITE FLEETS AND WHATNOT.
SO, UM, SO AND THEN OUR BUSING CONTRACT, AND AS YOU REMEMBER THAT WAS COMPETITIVELY BID, WE HAD THREE PROPOSALS, AND WE HAD THE, WE, WE SELECTED THE LOWEST PRICE ON THAT, SO THAT WAS SOMETHING THAT WE JUST, IT'S JUST THE MARKET. WE RISK INSURANCE WENT UP 8%, SO, AND WE WERE LUCKY BECAUSE WHEN WE WERE AT WASBO, WHICH WAS AFTER A LOT OF CONTRACTED DATES FOR MAKING DECISIONS ABOUT BUDGET AND CONTRACTS WERE DONE, THEY WERE GETTING A HUNDRED PERCENT INCREASES AND OR 50% INCREASES. NOW THIS IS THROUGH THE WASHINGTON STATE POOL, SO IT'S A DIFFERENT POOL.
WE'RE IN THE SCHOOL INSURANCE POOL, IT'S A DIFFERENT POOL, SAI YEAH, SO YEAH, SO THERE'S AN ACRONYM THERE.
SO, WE WERE REALLY FORTUNATE, AND PLUS WE ALSO HAVE A VERY GOOD RATE CLAIM RATE, SO YOU COULD HAVE US 8% WAS THE MINIMUM, 16 AND THEN ON, SO WE, WE QUALIFIED FOR THE 8%. SO, WE WERE PRETTY EXCITED ABOUT HAVING A REALLY GOOD, AND THAT'S, THAT'S THE WORK OF OUR RISK MANAGER SHERI DALY, SHE'S OUR DIRECTOR OF RISK SERVICES RISK MANAGEMENT, AND THE WORK THAT SHE'S DOING, MAKING SURE THAT WE'RE DOING EVERYTHING AS SAFE AS, AS POSSIBLE FOR EMPLOYEES AND STUDENTS.
SO, UTILITIES INCREASED 3.3%, SO THAT WAS $152,650. SO THOSE WERE JUST SOME NOTABLE EXPENDITURE CHANGES THAT I WANTED TO CALL OUT, AND THESE ARE THE THINGS YOU HEAR US TALKING ABOUT ALL THE TIME, RIGHT? WE'RE NOT FULLY FUNDED, WE'RE NOT FULLY FUNDED, THE STATE'S NOT KEEPING UP, THIS GAP IS GROWING, AND WHEN YOU HAVE INSURANCE COSTS THAT CONTINUE TO GROW AND GROW AND GROW, AND YOUR ALLOCATION IS LIMITED, YOU JUST HAVE TO ABSORB IT
[01:00:01]
THROUGH OTHER, UM, YOU HAVE TO REDUCE PROGRAMS, AND THAT'S THE UNFORTUNATE PART.SO, I AM GOING TO MOVE RIGHT INTO EXPENDITURES BY PROGRAM UNLESS SOMEBODY HAS SOME QUESTIONS ON THE EXPENDITURES BY OBJECT. OKAY, MOVING ALONG, SO EXPENDITURES BY PROGRAM, THIS IS BROKEN DOWN INTO BASIC EDUCATION AND ALE IS 48.7, SPECIAL EDUCATION IS 18.2% THAT'S A PROGRAM, IT'S A BIG PROGRAM. AND OUR CAREER TECH IS 4.4% OF OUR EXPENDITURES, COMPENSATORY EDUCATION, WHICH IS GOING TO BE YOUR BILINGUAL PROGRAMS, YOUR GRANT PROGRAMS, CATEGORICAL PROGRAMS, OTHER INSTRUCTIONAL PROGRAMS, I GOTTA GO TO MY CHEATS HERE, SO YOUR OTHER INSTRUCTIONAL PROGRAMS ARE GOING TO BE HIGH CAP, CAPACITY FOR DONATIONS FEES, AND WHERE SOME OF OUR EXPENDITURES ARE, ARE OFFSET BY REVENUE.
COMMUNITY EDUCATION IS, IS A PROGRAM, AND IT'S 0.3%, AND AGAIN EXPENDITURES ARE OFFSET BY REVENUES. AND THEN YOU HAVE YOUR DISTRICT-WIDE SUPPORT IS 11.5%, THAT INCLUDES BUILDING MAINTENANCE, GROUNDS, CUSTODIANS, BOARD OF DIRECTORS', SUPERINTENDENT'S OFFICE, DIRECTORS, SUPERVISOR'S, HUMAN RESOURCES, PUBLIC RELATIONS, SECURITY, UTILITIES, INSURANCE, IT, WAREHOUSE, AND BUSINESS OFFICE. SO, SO THAT'S WHY YOU HAVE THESE, YOU KNOW, KIND OF NOTES, SO THAT IF YOU'RE TALKING TO SOMEONE AND YOU WANT TO KNOW WHAT'S IN THAT CATEGORY, I FORGOT WHAT'S IN THAT CATEGORY, YOU HAVE THAT INFORMATION AVAILABLE FOR YOU. AND THEN OF COURSE PUPIL TRANSPORTATION IS 8.3%, WHICH IS THE TWO FROM BUS AND CROSSING GUARDS.
SO, SO THAT IS EXPENDITURES BY PROGRAM FOR A TOTAL OF TWO HUNDRED TWENTY-SEVEN MILLION THREE THOUSAND SIX HUNDRED AND SIXTEEN DOLLARS.
OKAY, MOVING ON TO OUR BUDGET SUMMARY ON PAGE 12, SO NOW WE'RE LOOKING AT, IF YOU TAKE YOUR REVENUES OF TWO HUNDRED TWELVE MILLION NINE HUNDRED NINETY TWO THOUSAND EIGHT FORTY SIX, AND YOU TAKE YOUR TOTAL EXPENDITURES OF TWO HUNDRED TWENTY SEVEN MILLION THREE THOUSAND SIX HUNDRED SIXTEEN, WE ARE GOING TO HAVE TO USE FUND BALANCE OF FOURTEEN MILLION TEN THOUSAND SEVEN HUNDRED SEVENTY DOLLARS, AND WE'LL GO THROUGH FUND BALANCE, THAT'S GOING TO BE THE NEXT CATEGORY WE'RE GOING TO USE.
SO, OUR FUND BALANCE WILL BE DROPPING DOWN FROM TWENTY-FIVE POINT SEVEN MILLION TO ELEVEN POINT SEVEN MILLION DOLLARS.
OKAY, AND THERE IS A ROUNDING ERROR ON THE, ON THE BUDGET DOCUMENT. CINDY AND I TRIED TO LIKE, HOW DOES IT SAY FOURTEEN AND NOT FIFTEEN, BUT IT'S A ONE DOLLAR ROUNDING OUR, SO ERRORS, SO WE CAN'T, WE CAN'T, WE CAN'T, WE CAN'T FIX IT, IT'S LOCKED OUT, SO WE'RE LOCKED OUT OF IT.
SO, I'M GOING TO MOVE ON TO FUND BALANCE BECAUSE THAT'S REALLY AN IMPORTANT CATEGORY THAT WE TALK ABOUT. THERE ARE DIFFERENT CATEGORIES FOR FUND BALANCE. AND SO, WE HAVE RESTRICTED CATEGORIES, AND THEN WE HAVE ASSIGNED CATEGORIES, AND THEN WE HAVE UNASSIGNED CATEGORIES.
SO, WHEN WE'RE TALKING ABOUT RESTRICTED FOR CARRYOVER OF RESTRICTED REVENUES, WHAT WE'RE TALKING ABOUT IS MONEY WE'VE COLLECTED THAT WE NEED TO SET ASIDE AND SPEND ON THOSE RESTRICTED PROGRAMS. AND EXAMPLES ARE GOING TO BE YOUR LEARNING ASSISTANCE PROGRAM AND CTE. THOSE ARE YOUR BIG ONES. THEY CANNOT BE USED TO BALANCE THE BUDGET. SO, YOUR NON-SPENDABLE FUNDS BALANCE CANNOT BE USED TO, UM, BALANCE THE BUDGET EITHER.
THOSE ARE GOING TO BE INVENTORY AND PREPAIDS.
AND WE ALWAYS PREPAY OUR INSURANCE, SO THAT $2.7 MILLION BILL IS INCLUDED IN THIS INVENTORY AND PREPAID.
SO THAT'S WHY THAT'S SUCH A LARGE NUMBER THAT YOU'RE SEEING IN YOUR PREPAIDS AND INVENTORY.
WE DON'T HAVE THAT MUCH INVENTORY IN THERE. SO, IT. WE HAVE A LOT IN PREPAIDS BECAUSE WE DID A LOT OF OUR CURRICULUM ADOPTIONS WERE PREPAID FOR, FOR SAVINGS, AND YOU HAVE TO PRETTY MUCH BUY THE WHOLE PROGRAM FOR SIX YEARS AND THEN YOU SPREAD IT OUT OVER TIME.
SO, WE PLANNED ON USING FUND BALANCE FOR SOME OF THESE THINGS THAT WE KNOW, BECAUSE WE HAVE TO EXPENSE THEM AND PUT,
[01:05:01]
AND REDUCE FUND BALANCE FOR THOSE.AND MICHELLE, THAT'S A, THAT'S A CHANGE IN THE LAST, I DON'T KNOW, THREE, FOUR YEARS. CORRECT. WHERE WE HAVE TO SET ASIDE THAT MONEY, EVEN THOUGH WE'VE PAID IT OUT, YOU STILL HAVE TO PUT IT IN YOUR BUDGET EACH YEAR ON EITHER SIDE OF YOUR YOUR BUDGET BASICALLY.
YOU HAVE TO BUILD IT IN AS AN EXPENDITURE AND A REVENUE.
CORRECT. YES. CINDY DOES AN AMAZING JOB. YOU SHOULD SEE HER SPREADSHEET. IT IS. IT IS.
IT'S ABOUT THAT LONG. IT'S, IT'S A STATEMENT SIZE ONE.
SO, I'M TRYING TO GET ALL OF THE DIFFERENT. SO, BECAUSE YOU WANT TO GET THE RIGHT EXPENDITURE ACCOUNT THAT MATCHES WHAT WHERE IT NEEDS TO BE APPROPRIATELY EXPENDED INTO.
SO YEAH, LOTS OF WE HAVE LOTS OF FUN.
NEXT IS SO ALL OF THOSE RESTRICTED AND NON-SPENDABLE CANNOT BE USED TO BALANCE THE BUDGET. SO ASSIGNED FOR OTHER PURPOSES.
SO OH, I'M SORRY. AND THERE WAS AN UNINSURED RISK AND SELF-ASSURANCE. THOSE ARE SET ASIDES. SHOULD WE HAVE AN, AN URGENT NEED FOR USING THOSE FUNDS. SO, UM, BUT LET'S MOVE DOWN TO UNASSIGNED FUND BALANCE, WHICH IS ACTUALLY IT'S, IT'S, IT'S ASSIGNED FOR OTHER PURPOSES, BUT IT'S CONSIDERED UNASSIGNED. I KNOW THAT SOUNDS, IT IS IT'S A SIGN, I YOU KNOW IT THAT'S A TYPO, WE'RE GOING TO GET THAT FIXED.
SO, ASSIGNED FOR OTHER PER PURPOSE IS TO SUPPORT ONGOING PROGRAMS SUCH AS STUDENT SUPPORT, CURRICULUM ADOPTIONS, FACILITY IMPROVEMENT SET ASIDES, BUILDING AND DONATION CARRYOVER FUNDS AVAILABLE TO EXPENSE IN THE FUTURE. SO, WE HAVE HAD ASSIGNED FUND BALANCE TO TRY TO, YOU KNOW, WHEN YOU HAVE TO DO A LARGE PURCHASE OF A CURRICULUM ADOPTION.
THAT. YOU NEED TO HAVE SOME MONEY SET ASIDE BECAUSE YOU'RE NOT GOING TO BE ABLE TO JUST BUDGET IT INTO YOUR REGULAR BUDGET, YOU KNOW, YOUR REGULAR OPERATION.
YOU NEED TO HAVE THAT MONEY SET ASIDE.
AND IN THIS CASE, YOU CAN SEE WE ARE USING ALL OF OUR ASSIGNED FUND BALANCE, THE SEVEN MILLION DOLLARS THAT WE HAD SET ASIDE TO FUND IT'S, WE'RE WIPING IT OUT COMPLETELY. SO, THERE IS NO. SO THAT'S GONNA NOT SET ANYTHING ASIDE FROM YOU KNOW. AND. A. A A HUGE REPAIR, IF WE HAVE A HUGE REPAIR, WE'RE NOT GOING TO HAVE THOSE FUNDS AVAILABLE.
WHEN WE'RE GOING TO DEFER CURRICULUM ADOPTIONS TO AS MUCH AS WE CAN, BUT IT'S, IT'S REALLY NOT.
IT'S NOT HEALTHY, IT'S NOT A HEALTHY, AND WE'LL TALK ABOUT THAT WHEN WE GO TO OUR BUDGET HEARING AND PRESENTATION. I WILL DO A SUMMARY OF ALL OF THIS, BUT WE'LL TALK ABOUT OUR HEALTH SCORE, FINANCIAL HEALTH INDICATORS SCORE FROM OSPI, AND I'LL GIVE YOU AN UPDATE ON THAT, BECAUSE OF COURSE OUR, OUR HEALTH SCORE HAS PLUMMETED BASED ON THIS BUDGET.
SO. UM, AH, NEXT IS OUR UNASSIGNED TO MINIMUM FUND BALANCE POLICY.
SO, OUR POLICY 6022 REQUIRES A MINIMUM OF FOUR TO SIX PERCENT OF OUR TOTAL BUDGET EXPENDITURES. AND THAT SUPPORTS THE UNCERTAINTY AND CASH FLOW, AND IT IS FOR EXPENDITURES FOR UNCERTAINTIES AND CASH FLOW AT, UM, THAT WE HAVE FOR AT, AND IT HAS TO BE AS A FOUR TO SIX PERCENT AT THE END OF THE SCHOOL YEAR, THE, UM, FISCAL YEAR I SHOULD SAY, NOT SCHOOL YEAR, FISCAL YEAR.
SO, THIS BUDGET DOES NOT MEET THAT THE BOARD POLICY, AND I CAN TELL YOU WE WORKED REALLY HARD. TO TRY TO GET THERE, BUT WE IN THE BUDGET DO NOT MEET THE MINIMUM FUND BALANCE POLICY. SO, WE ARE HOPING THAT, THAT THE STATE WILL FULFILL ITS PROMISE ON TO THAT THEY WOULD FUND THE CONTRACTOR BENEFITS.
WE DON'T KNOW, WE, THEY, THERE, THERE'S NOTHING DEFINITE THAT SAYS WE'LL GET IT, BUT WE CAN HOPE THAT THROUGH THE LEGISLATIVE SESSION THAT WE CAN SEE. THOSE, THOSE DOLLARS COME TO US. THAT'S TWO MILLION DOLLARS THAT WOULD PUT US AT A FOUR PERCENT ON BALANCE, SO WE ARE SHORT TWO MILLION DOLLARS.
TO MEETING THAT. SO. EVEN SO, WE ALSO SPEND, YOU KNOW, LESS THAN WE NORMALLY BUDGET, I MEAN THE GOAL IS, IS THAT WE TRY TO NOT SPEND MONEY WE DON'T NEED TO SPEND, SO HOPEFULLY WE WILL HAVE SOME MONEY LEFT OVER.
[01:10:03]
BUT WE CAN'T RESPONSIBLY BUILD A BUDGET WITHOUT, YOU KNOW, WITHOUT PUTTING THOSE DOLLARS AND THAT WE THINK WE'RE GONNA.SO NOT MEETING YOUR FUND BALANCE POLICY HAS A LOT OF CONSEQUENCES. IT, IT, AND THE MAIN CONSEQUENCE IS GOING TO NOT ONLY IT'S GOING TO BE CASH FLOW, BECAUSE AS YOU KNOW CASH FLOW, WE TALKED ABOUT THIS, WE GET TWENTY TWO POINT FIVE PERCENT OF OUR APPORTIONMENT COMES IN JULY AND AUGUST. TWENTY TWO POINT FIVE. SO, MOST SCHOOL DISTRICTS IN, IN, IN JUNE ARE STARTING TO BORROW MONEY, AND THEY'RE DOING APPORTIONMENT ADVANCES, THEY'RE BORROWING FROM THE COUNTY TREASURER, THEY'RE DOING WHATEVER THEY NEED TO DO, AND WE HAVE NOT BEEN IN THAT POSITION SINCE THE LAST TIME WE HAD A LEVY, TRIPLE LEVY FAILURE BACK IN TWO THOUSAND NINETEEN NINETY.
NINETY-EIGHT, SOMEWHERE AROUND THERE. SO, THIS DISTRICT HAD TO RUN ON BINDING CONDITIONS, THEY HAD TO BORROW MONEY TO PAY PAYROLL AND PAY ACCOUNTS PAYABLE. IT'S NOT A GOOD, IT'S NOT A GOOD POSITION TO BE IN.
SO. ALSO ANOTHER, UM, AH, ISSUE WITH HAVING FUND BALANCE IS.
THE STATE AUDITORS DO NOT, UM IT WOULD BE, IT WILL BE AN AUDIT REPORTABLE ITEM IF WE'RE NOT MEETING OUR FUND BALANCE POLICY. UNLESS WE UPDATE OUR POLICY AND WE MAKE ADJUSTMENTS TO THAT SOMEHOW WHERE WE HAVE A PLAN TO PAY IT BACK, WHICH WE HAVE HAD IN THE PAST, A PLAN TO, TO BRING MONEY BACK INTO OUR ACCOUNT. ANOTHER LARGE ITEM, TICKET ITEM IS OUR SAFETY NET.
SAFETY NET IS ABOUT THREE POINT EIGHT MILLION DOLLARS THAT IS NOT PAID UNTIL AUGUST. WE PAY OUT THOSE EXPENDITURES ALL YEAR LONG, AND THERE IS NO MONEY PROVIDED FOR THAT UNTIL AUGUST. SO, YOU'RE WORKING WITH WHEN YOU GET BELOW FOUR PERCENT, YOU'RE GOING TO SEE STRUGGLES WITH CASH FLOW. AND IT CREATES A LOT OF WORK IN YOUR BUSINESS OFFICE.
BECAUSE YOU'RE TRACKING YOUR CASH DAILY. DO WE HAVE ENOUGH TO RUN PAYROLL AND WARRANTS, AND IF WE DON'T. WHAT DO WE NEED TO DO TO MITIGATE THAT? SO. SO. OUR FUND BALANCE SUMMARY: WE HAVE THE STATE OVERSIGHT RISK FOR A MULTIYEAR ABSENCE OF AN EPN, A LEVY WILL PUT THE DISTRICT IN OFFICIAL BINDING CONDITIONS WITH THE STATE IN TWENTY-SEVEN TWENTY-EIGHT, AND LIKELY LEAD TO FINANCIAL OVERSIGHT. IF THE LEVY DOES NOT PASS IN NOVEMBER TWENTY-SIX, BY PASSING THE TWO-YEAR WAITING PERIOD. IF WE'VE ALREADY DONE WHAT THEY DO IN BINDING CONDITIONS, WHEN THEY COME IN, THEY SAY CUT, CUT, CUT, CUT, CUT.
WELL, THE DISTRICT HAS ALREADY DONE ALL THOSE CUTS, WE, THERE IS VERY LITTLE TO TRIM OUT OF THIS BUDGET, OUR BUDGETS ANY LONGER, WE'VE ALREADY CUT SO MUCH OUT OF THE BUDGET. SO. WE WOULD GO, WE WOULD BYPASS THAT TWO-YEAR WAITING PERIOD BECAUSE THAT'S WE'VE ALREADY DONE THAT WORK, SO THEY WOULD PUT US DIRECTLY INTO FINANCIAL OVERSIGHT.
AGAIN, WE ALREADY TALKED ABOUT THE CASH FLOW AND INTERFUND BORROWING, AND, AND WE ALREADY TALKED ABOUT THE OPERATIONAL IMPACT OF THE NEW CURRICULUM ADOPTIONS FACILITIES REMAIN ON HOLD, AND WE HAVE TO REBUILD THAT FUND BALANCE TOO, SO IT'S NOT JUST. IF WE PASS THE LEVY, WE GET TO SPEND IT ALL, WE'RE GOING TO HAVE TO PUT SOME OF THAT BACK TO BUILD UP THOSE RESERVES SO THAT WE CAN MEET OUR CASH FLOW OBLIGATIONS FOR THE DISTRICT. THAT IS GENERAL FUND AND OUR FUND BALANCE SUMMARY. IS THERE ANY QUESTIONS THAT I CAN ANSWER? SO. AGAIN LET ME SEE IF I'M UNDERSTANDING CORRECTLY OKAY ON PAGE THIRTEEN.
SAYS PROJECTED BEGINNING FUND BALANCE.
PROJECTED ENDING FUND BALANCE.
ELEVEN MILLION SIX HUNDRED SEVENTY-FIVE THOUSAND DOLLARS.
SORRY, WHAT I HEARD YOU SAY WAS SOMETHING ABOUT TWO MILLION.
SO LET ME JUST ADD THAT IN THERE. SO, IF WE HAD THIRTEEN MILLION SIX HUNDRED AND SEVENTY-FIVE.
[01:15:01]
RIGHT IF WE HAD IT IN THE CATEGORY OF, OF UNASSIGNED A MINIMUM FUND BALANCE POLICY, IF WE ADDED TWO MORE MILLION DOLLARS THERE THAT WOULD PUT YOU TO FOUR PERCENT.OKAY I'M NOT SURE THAT I HEARD CORRECTLY.
IT'S JUST THE NUMBERS THAT BUT YOU'RE RIGHT YOU'RE RIGHT IT'S THIRTEEN, IT'S THIRTEEN MILLION TOTAL.
SO, IF WE HAD THIRTEEN SIX SEVENTY-FIVE THERE YEAH.
RIGHT? YOU'RE WELL YOU SHOULD JUST BE LOOKING AT THAT ONE LINE.
THE UNASSIGNED TO MINIMUM FUND BALANCE POLICY YOU SHOULD BE SAYING INSTEAD OF I'M NOT SURE, WHERE, WHERE IS THAT ONE LINE AT? IT'S RIGHT ABOVE THE TOTAL.
ON THE, THE TABLES, THE, IT'S THE .
OKAY, UNASSIGNED TO MINIMUM FUND BALANCE POLICY.
OKAY AND SO THAT SAYS SEVEN MILLION.
SO, NINE IS WHAT WE WOULD WANT OR TEN.
EIGHT OR NINE, YOU KNOW, OKAY YEAH NINE, YEAH OKAY, OKAY. THANK YOU.
OKAY? ALL RIGHT, IT'S 5:16. SO, I'M GOING TO MOVE ONTO ASB UNLESS ANYBODY ELSE HAS ANYTHING ELSE THAT THEY WANNA. OKAY. SO, WE'RE GOING TO MOVE INTO, WE'RE GOING TO GO QUICKLY THROUGH THOSE BECAUSE THERE'S JUST NOT A WHOLE LOT. THE ASB IS STUDENT EXTRACURRICULAR ACTIVITIES THAT ARE CULTURAL, ATHLETIC, RECREATIONAL, SOCIAL. THERE'RE, THOSE ARE STUDENT ORGANIZATIONS. EVERY ONE OF OUR SCHOOLS HAS AN ASB EXCEPT FOR BGVA BECAUSE OF THE VIRTUAL ACADEMY. AND, UM, THEY RECEIVE MONEY IN FROM NOT ONLY BOOSTER MONEY THAT'S COMING IN, BUT PARTICIPATION FEES, GATE FEES, DONATIONS, FUNDRAISERS THAT THEY DO. AND THEIR BUDGETS ARE PREPARED BY EACH ONE OF THE SCHOOLS DEPENDING, AND THE PROCESS DEPENDS ON THE GRADE, GRADE LEVEL OF THE SCHOOL. BUT YOU CAN SEE THAT THEIR TOTAL REVENUE FOR ASB IS BUDGETED TO BE $3,243,366, AND THEIR TOTAL EXPENDITURES ARE BUDGETED AT $3,149,742. SO, WE'RE PROJECTING THEIR ENDING FUND BALANCE TO BE ABOUT $1.5 MILLION THAT THEY HAVE IN THEIR, IN THEIRS. AND A LOT OF TIMES THEY HAVE MONEY SET ASIDE FOR THE NEXT YEAR, RIGHT, SO THAT THEY CAN GET, GET STARTED IN THE NEXT YEAR BEFORE SOME OF THOSE MONIES ARE COMING IN.
SO, THEY'RE EXPECTED TO ACTUALLY HAVE A SLIGHT INCREASE IN THEIR ENDING FUND BALANCE.
ANY QUESTIONS ON ASB? ALL RIGHT, MOVING ON TO DEBT SERVICE. OUR DEBT SERVICE FUND, WE HAVE A, A SMALL LOAN FOR OUR LIGHTING RETROFITS AND ENERGY IMPROVEMENTS THAT THE BOARD APPROVED, THAT'S A NON VOTED LOAN. AND THE IDEA IS THAT THE ENERGY SAVINGS AND MATERIALS THAT WE BUY WILL EVENTUALLY PAY, THAT IT WILL PAY FOR THE LOAN AND THE INTEREST ON THAT. SO, WE DO HAVE A PAYMENT OF $382,125 THAT WILL BE COMING OUT OF THE CAPITAL PROJECTS FOR THAT LOAN PAYMENT. SO. AND IT HAS A, UM, AH, THE, THE REVENUES THAT ARE GOING INTO THAT ARE GOING TO BE A TRANSFER FROM CAPITAL PROJECTS FUNDS.
SO LET ME EXPLAIN THAT FOR A MINUTE BECAUSE YOU'RE GOING TO SAY WHY IS IT COMING FROM CAPITAL PROJECTS, NOT FROM GENERAL FUNDS. WE'RE LOOKING AT A LARGE REBATE FROM CLARK PUD, AND IT'S SO LARGE AND IT'S A CAPITAL PROJECT, WE'RE GOING TO ACTUALLY PUT THAT CHECK INTO OUR CAPITAL PROJECTS FUND BANK ACCOUNT, AND THEN FROM THAT WE'RE GONNA TRANSFER IT'S ALLOWABLE TO TRANSFER TO OUR DEBT SERVICE FUND TO MAKE THAT PAYMENT. AND THAT WAS PART OF OUR WHOLE PLAN ANYWAYS, I MEAN WE KNEW THAT THAT REBATE WAS GOING TO COME IN AND WAS GOING TO BE APPLIED TOWARDS THE LOAN OF THAT. SO, WE ARE GOING TO TAKE ADVANTAGE OF THAT, BUT EVENTUALLY WE WILL BE LOOKING AT SOME OF THOSE FUNDS COMING, TRANSFERRING FROM GENERAL FUND WITH HOPEFULLY THE UTILITY SAVINGS AND MATERIAL SAVINGS.
OKAY ANY QUESTIONS ON DEBT SERVICE THEN? (INAUDIBLE) YEAH.
(INAUDIBLE) YEAH, OKAY, CAPITAL PROJECTS FUND. OKAY, I'M GONNA TRY TO MOVE SWIFTLY THROUGH THIS, BUT THERE'S A LOT OF WONDERFUL THINGS GOING ON.
CAPITAL PROJECTS IS ONE OF MY FAVORITES BECAUSE THERE'S A LOT OF THINGS THAT ARE, THERE'S, THERE'S GREAT THINGS HAPPENING, AND THESE PROJECTS ARE GREAT FOR SUPPORTING STUDENTS AND STAFF. SO, WE ARE LOOKING AT,
[01:20:01]
WE DO HAVE A CAPITAL PROJECTS LEVY, SO WE DO HAVE REVENUE COMING IN FROM THE CAPITAL PROJECTS LEVY.WE HAVE IMPACT FEES THAT COME IN, WE HAVE OUR STATE, UM, WE HAVE SPECIAL PURPOSE MONEY LIKE GRANTS MONEY THAT WE EXPECT TO COME IN, AND THEN WE HAVE, AH, ALSO WE HAVE SOME INTEREST INCOME AND, AND AGAIN SOME REBATES THAT ARE COMING IN. SO TOTAL REVENUES THAT WE'RE PROJECTING IS $18,279,220, AND WE ARE GOING TO ACTUALLY SPEND ALL THAT AND THEN SOME OF THE MONEY THAT'S SITTING IN THE FUND BALANCE AS WELL.
SO, WE ARE LOOKING AT, UM, WE HAVE KIND OF, I'VE BROKEN IT OUT INTO KIND OF TWO SECTIONS, ONE FOR TECHNOLOGY AND ONE FOR, AH, FACILITIES. SO, WE'RE LOOKING AT, UM, IN OUR CAPITAL LEVY PROJECTS, WE'RE LOOKING AT FOR TECHNOLOGY AND EQUIPMENT, WE ARE LOOKING AT REPLACING A CORE SERVER INFRASTRUCTURE, CLASSROOM TECHNOLOGY REFRESHES THAT ARE, ARE OUR ANNUAL REFRESHES, SOME TECHNOLOGY SUPPORT, WIRELESS INFRASTRUCTURE, SECURITY CAMERAS AND RADIOS, AND SOFTWARE. SO, SOME OF THAT MONEY THAT WE'RE SPENDING FROM OUR LEVY DOLLARS IS GOING TO PAY FOR THOSE.
ON THE FACILITY SIDE, ON THE NEXT PAGE, YOU'RE GOING TO BE LOOKING AT, AGAIN, SPECIFIC PROJECTS THAT WERE OUTLINED IN OUR, IN OUR CAPITAL LEVY PLAN.
BATTLEGROUND HIGH SCHOOL NEW HVAC COOLING TOWER, CAPTAIN STRONG PRIMARY RECOAT GYM ROOF, AMBOY MIDDLE SCHOOL A BUILDING, SOME WORK ON THE STEM AND BAND ROOMS, LORNE MIDDLE SCHOOL COVER PLAY SHED AND BEAMS FOR BUILDING B, MAPLE GROVE PRIMARY SCHOOL NEW HVAC ROOFTOP UNITS, THREE OF THOSE, PLEASANT VALLEY REFURBISHED HVAC, AND METAL ROOFING FOR PRAIRIE HIGH SCHOOL, REFURBISHED A FIELD HOUSE, COVERED BLEACHERS AT TRACKS, REVISED BUS LANES, RECOAT LOW SLOPE ROOFS. SO, THIS IS CREATING A SAFE, DRY, AND WARM ENVIRONMENT, RIGHT, FOR, FOR OUR STAFF AND STUDENTS.
PRAIRIE HIGH SCHOOL AND BATTLEGROUND HIGH SCHOOL ALSO HAVE INCLUDED THEIR CULINARY PROGRAM UPGRADES THAT WERE, THAT WERE AGREED ON WITH THE LEVY, AND THEN WE ALSO HAVE OUR HEALTH SCIENCES PROGRAM UPGRADES ARE ALSO BUDGETED TO, AH, AH, BE COMPLETED NEXT YEAR. SO, KEVIN HAS A LONG LIST OF PROJECTS TO WORK ON, AND THEN WE, THE STATE GRANT, WE HAVE SOME STATE GRANT MONEY TO HELP WITH OUR CULINARY PROGRAM. AND THEN OUR IMPACT FEES, I'VE SET ASIDE CONTINGENCY, AND THERE'S NO REAL PROJECT PLAN RIGHT NOW WITH THE IMPACT FEES FOR A MODULAR, BUT IF WE HAVE SOME WORK THAT CARRIES OVER FROM ONE YEAR TO THE NEXT, YOU NEED TO HAVE CONTINGENCY SET ASIDE IN THE EVENT THAT THE, THAT THE, SO THAT YOU HAVE THE EXPENDITURE AUTHORITY APPROVED FROM THE BOARD. SO, OUR, OUR BEGINNING FUND BALANCE HAS ABOUT 17 MILLION DOLLARS, AND WE'RE LOOKING AT AN ENDING FUND BALANCE OF TWELVE MILLION SEVEN HUNDRED THOUSAND DOLLARS FOR THAT.
SO, ANY QUESTIONS ON CAPITAL PROJECTS? I THINK IT WOULD JUST BE WORTH NOTING FOR PUBLIC THAT THESE CANNOT TRANSFER BACK.
RIGHT, CAPITAL LEVY DOLLARS CAN ONLY BE USED FOR THOSE PROMISES THAT WERE MADE WITHIN THAT CAPITAL LEVY ELECTION AND PROPOSITION.
OKAY. AND THEN I'M GONNA JUST COVER A LITTLE BIT OF THE FORECAST, AND THEN WE'RE GOING TO TALK ABOUT NEXT STEPS IN THE BUDGET PROCESS, BECAUSE THIS IS JUST THE WORK SESSION, SO THERE'S A NEXT STEP. SO BASICALLY, WE WILL HAVE MORE INFORMATION IN OUR NEXT MEETING ON THE FOUR YEAR FORECAST.
IT'S A HIGH LEVEL SUMMARY BECAUSE IT'S JUST AN ESTIMATE.
BUDGETING IS MANAGEMENT'S BEST ESTIMATE AT THE TIME, UM, BUT WE DO REACH A DEFICIT THRESHOLD STARTING IN 27-28, A NEGATIVE ENDING FUND BALANCE. AND, UM, IF WE WERE TO MEET OUR MINIMUM FUND BALANCE POLICY, WE'D HAVE TO REDUCE ANOTHER $13.3 MILLION. AND WITH THAT IS THERE'S NO RESTORATION OF THE - ALREADY THE $34 MILLION THAT WE'VE ALREADY CUT. SO, WE'RE KIND OF CONTINUOUSLY GOING BACKWARDS, RIGHT? EVEN THOUGH WE HAVE A, WE'VE HAD, YOU KNOW, WE'VE PLANNED ON CERTAIN FUNDS AND WE'VE MADE CERTAIN CUTS, BUT AS WE CONTINUE TO SEE UNFUNDED MANDATES CONTINUE, WE KIND OF IT'S KIND OF A
[01:25:02]
BACKWARDS SITUATION WHERE IT'S, IT'S A CHALLENGE. AND SCHOOL DISTRICTS ACROSS THE STATE OF WASHINGTON ARE, ARE ALSO FACING THESE CHALLENGES AS WELL, BUT WITHOUT A LEVY, WHICH IS REALLY CONSIDERED A NORMAL FUNDING SOURCE FOR A SCHOOL DISTRICT.OUR 99 PERCENT OF THE SCHOOL - NINETY SEVEN PERCENT.
NINETY SEVEN PERCENT OF THE SCHOOL DISTRICTS HAVE LEVIES. THAT IS IT'S KIND OF ASSUMED THAT THAT IS A FUNDING SOURCE THAT IS GOING TO PAY BECAUSE THE STATE DOES NOT FULLY FUND WHAT THE DISTRICTS NEED TO KEEP THEIR OPERATIONS RUNNING. SO, UM, THE SO ON THE REVENUE ASSUMPTIONS AND SOME RISK THAT WE HAVE GOING INTO A FOUR YEAR PROJECTION.
IS THE COST OF LIVING IS THAT GOING TO BE ADEQUATE THAT THEY'RE PROJECTING? ARE STATE EXPERIENCE FACTOR RISKS THIS IS KIND OF IMPORTANT BECAUSE TWENTY SEVEN TWENTY TWENTY SEVEN LEGISLATIVE SESSION IS A REBASE YEAR. IT'S A REBASE NOT ONLY FOR REGIONALIZATION, WHICH OUR DISTRICT SHOULD HAVE A HIGHER REGIONALIZATION JUST IN GENERAL. BUT WE ALSO HAVE, WE RECEIVE KIND OF A 4% BONUS FOR EMPLOYING TEACHERS WITH ABOVE AVERAGE EXPERIENCE AND ADVANCED DEGREES. SO, WHEN THE STATE REBASES EVERY FOUR YEARS, WE HAVE THE POTENTIAL LOSS OF $3 MILLION OF THAT DOLLAR.
NOW, IT MAY NOT ALL BE IN 27, 28, BUT IT WILL, IT GOES FOUR YEARS. SO, THEY MIGHT TAKE, YOU KNOW, DEPENDING ON HOW THE STATE DECIDES TO TAKE IT, THEY COULD TAKE 2% AWAY AND THEN 2%, YOU KNOW, THE NEXT YEAR, SO THAT OVER TWO YEARS.
BUT THAT IS THREE MIL THAT'S MONEY THAT WE GET ON AN ANNUAL BASIS BECAUSE WE HAVE HIGHER EXPERIENCE STAFFING.
SO, THE REASON REBASING HAS COME TO BE IS IT USED TO BE THAT WE WOULD GET EXACTLY THE FUNDING ON THE STATEWIDE SALARY SCHEDULE FOR THE EMPLOYEES THAT WE HAD.
WE WOULD SEND IN A REPORT, AN S275, THAT SAID OUR EMPLOYEES, THE NUMBER OF EMPLOYEES, HIT HERE ON THE SALARY SCHEDULE, AND WE WOULD BE SENT EXACTLY THAT AMOUNT OF MONEY. WHEN MCCLEARY HAPPENED, WE ARE NO LONGER FUNDED THAT WAY BECAUSE THERE IS NO STATEWIDE SALARY SCHEDULE. SO, WHAT HAPPENED IS THEY GOT AN AVERAGE COST OF AN AVERAGE TEACHER, I CAN'T EVEN TELL YOU WHAT THE FORMULA IS ABOUT.
BUT THEY SEND US MONEY FOR THAT. WHEN IT IS DETERMINED, WE STILL TURN IN OUR S275, AND OUR HR DEPARTMENT SPENDS A LOT OF TIME PUTTING THAT THING TOGETHER, BUT WE SEND IN OUR EXPERIENCE OF OUR STAFF TO THEM. THEY MAKE DECISIONS, WHEN MICHELLE SAYS REBASE, THEY MAKE DECISIONS EVERY HOW MANY YEARS, MICHELLE? FOUR.
THEY MAKE A DECISION OF WHETHER WE GET ADDITIONAL MONEY OR LESS MONEY BASED ON OUR EXPERIENCE FACTOR, AND SO WHEN SHE SAYS REBASE, THAT'S WHAT THEY'RE DOING IS THEY'RE DETERMINING OUR STAFF'S EXPERIENCE NEXT TO THE AMOUNT OF MONEY THAT WE'RE SENT PER STAFF.
AND I THINK DID I SAY THAT RIGHT? YEAH, AND I THINK WITH THE, WITH THE NUMBER OF RETIREMENTS THAT WE'VE SEEN, AND I THINK IT, I MEAN, WE WILL BE COMPARED TO THE STATE AVERAGE, WHICH IS, WE'VE GOT TO GET ALL THE SCHOOL DISTRICTS, HAVE TO PULL ALL THEIR INFORMATION IN TOGETHER, AND THEN WE WILL SEE WHERE WE LAND AND THERE IS NO WAY TO REALLY PROJECT THAT BUT WE, WE ARE AT THE RISK OF LOSING THAT MONEY.
AND SO, AND, AND NOT HAVING THAT AS PART OF OUR FUNDING.
SO, THE, THE RISK OF LOSING MONEY IS BASED ON HAVING TOO MANY OVER-EXPERIENCED PEOPLE OR HAVING NOT ENOUGH? IT'S GOING DOWN.
PEOPLE WITH EXPERIENCE RETIRING.
AND SO, IF WE HAVE LESS PEOPLE WITH EXPERIENCE, WE GET LESS MONEY EVERY FOUR YEARS, YEAH.
UM. ALSO, ENROLMENT IN OUR FOUR YEAR PROJECTIONS ASSUMPTIONS IS WE HAVE A MILD GROWTH PROJECTED AT 0.5%. REALLY, WE HAVE BEEN SEEING ABOUT A 2% GROWTH IN, IN ENROLLMENTS, SO THAT IT'S, IT'S BUDGETED CONSERVATIVELY IN OUR FOUR YEAR PROJECTION, AND THE EP&O LEVY IS ASSUMED, IS NOT ASSUMED IN THE PROJECTIONS, SO THAT'S WHERE YOU GET THAT NEGATIVE ENDING FUND BALANCES THAT ARE GOING TO BE OVER THE NEXT THREE YEARS PROJECTED OUT. SO, IN OUR EXPENDITURE'S ASSUMPTIONS, THERE'S GOING TO BE OUR BENEFIT INCREASE.
THERE'S NO CHANGE IN THE BENEFITS NOW; THERE COULD BE SOMETHING IN,
[01:30:01]
IN THE HEALTH CARE BENEFITS, WE HAVEN'T, THEY HAVEN'T, YOU KNOW, WE DON'T HAVE ALL OF THAT INFORMATION RIGHT NOW, BUT THE BENEFITS STAY FLAT.AND THEN I DID INCREASE OUR EXPENDITURES EXCEPT FOR THE BENEFITS BASED ON THE IPD, AND STAFFING KEPT, KEPT FLAT OVERALL BECAUSE OF LITTLE INCREASE IN ENROLLMENT. SO, WE'LL HAVE ADDITIONAL FOUR YEAR PROJECTION DETAILS WILL BE PRESENTED AUGUST 24TH. AND OUR NEXT STEP IS, IS WE'RE GONNA HAVE A PRESENTATION, A PUBLIC BUDGET HEARING, AND THEN THE ADOPTION OF THE BUDGET. AND I'VE TRIED TO GET THOSE BROKEN UP WITH OUR, I'VE ASKED OUR ATTORNEY, CAN WE BREAK THOSE UP, CAN WE HAVE OUR PUBLIC BUDGET HEARING THIS TIME AND THAT, AND THE WAY THAT THE RCW IS WRITTEN, YOU HAVE TO DO THEM ALL AT THE SAME TIME. BECAUSE WE'VE ASKED, BECAUSE IT SEEMS A LITTLE WONKY TO PRESENT A BUDGET, TAKE PUBLIC COMMENT, BUT THEN ADOPT IT RIGHT AFTER, AND WE HAVE TO HAVE IT ADOPTED BY AUGUST 31ST. WE ARE, WE ARE ON THE TIMELINE, AND IDEALLY IF WE COULD GET THIS DONE EARLIER, WE WOULD HAVE BEEN, JUST BEEN, YOU KNOW, WITH ALL OF THE CHALLENGES THAT WE'VE HAD.
SO, THERE IS BUDGET INFORMATION THAT IS LOCATED ON OUR DISTRICT WEBSITE.
AGAIN, AMANDA'S DONE AN AMAZING JOB OF HAVING THIS INFORMATION ORGANIZED AND EASY TO GET TO, SO IF YOU JUST GO TO THE DISTRICT WEBSITE UNDER FINANCE AND DISTRICT FINANCIAL INFORMATION, YOU'LL FIND THAT INFORMATION.
AND MY EMAIL ADDRESS AND PHONE NUMBER IS ALSO LISTED ON THIS DOCUMENT, SO IF YOU, IF ANYBODY HAS QUESTIONS, THEY CAN PLEASE REACH OUT TO ME. I'M HAPPY TO ANSWER QUESTIONS.
THANK YOU, MICHELLE AND CINDY.
ANYTHING ELSE? ANY QUESTIONS? IF, IF YOU HAVE QUESTIONS AS YOU TAKE IN ALL OF THIS AND YOU THINK ABOUT ANYTHING, PLEASE, PLEASE, PLEASE, AS MICHELLE SAID, REACH OUT, BUT FEEL FREE TO, TO CALL AND ASK AS WELL.
WHATEVER IS EASIEST, WE WANT TO MAKE SURE, SINCE WE HAVE TO DO THOSE IN THE SAME TIMELINE, THAT YOU HAVE ANY QUESTIONS THAT YOU HAVE ANSWERED, AND IF THERE'S SOMETHING THAT YOU THINK WOULD BE IMPORTANT FOR US TO PULL FORWARD, PLEASE LET US KNOW. I THINK MICHELE DOES A GOOD JOB, I APPRECIATE YOU SAYING THAT TERRY, BECAUSE I THINK SHE REALLY DOES MAKE IT DIGESTIBLE.
MICHELE IN SHARING IT, CINDY IN PUTTING IT ALL OF IT TOGETHER.
IS THERE ANYTHING ELSE FOR OUR MEETING NOW OR SHALL WE DISMISS AND COME BACK AT 6. OKAY THEN, HEARING NONE, THEN WE'LL GO AHEAD AND CONSIDER OUR MEETING ADJOURNED UNTIL 6 O'CLOCK.
THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.