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[00:00:04]

GOOD EVENING. IT IS 6:05 AND I CALL TO ORDER THE SPECIAL MEETING OF THE BOARD OF TRUSTEES OF FRISCO ISD.

[1. Discussion regarding Budget for 2022-2023]

WE DO HAVE QUORUM WITH ALL MEMBERS PRESENT MS. ARCHAMBAULT BEING PRESENT WITH US VIRTUALLY.

FIRST ITEM, FIRST AND ONLY ITEM ON THE AGENDA.

DISCUSSION REGARDING BUDGET FOR 2022-2023 SCHOOL YEAR, MRS. SMITH. THANK YOU.

WELL, GOOD EVENING. I HAVE LOTS OF FUN INFORMATION FOR YOU TONIGHT.

BEFORE I GET STARTED, I WANT TO SAY THANK YOU TO DISD BECAUSE THIS IS NOT A FUN PROCESS AND IT IS NOT A SHORT PROCESS.

AND THEY PUT UP WITH ME THROUGH A LOT OF THIS [INAUDIBLE] CAN ATTEST TO HOW FUN IT IS, BUT THEY WORK REALLY HARD ON THIS, SO I'M PRESENTING IT ALL.

BUT IT WAS REALLY A COLLECTIVE EFFORT.

I ALSO WANT TO THANK [INAUDIBLE] HALL, WHO IS OUR DIRECTOR OF FINANCE, FOR HELPING ME PUT ALL OF THIS TOGETHER.

SO YOU GUYS HAVE A FOLDER IN FRONT OF YOU.

I'M JUST GOING TO GO THROUGH REALLY QUICK WHAT IS IN IT.

ON THE LEFT HAND SIDE OF THE FOLDER IS A COPY OF THE PRESENTATION, BUT IT'S ALSO THE TWO ITEMS THAT YOU WOULD OFFICIALLY BE REQUESTED TO VOTE ON.

SO I KIND OF WANTED TO BE CLEAR.

THERE'S A WHOLE BUNCH OF INFORMATION THAT I'M GOING TO GO THROUGH, BUT THE PIECES OF INFORMATION THAT YOU ACTUALLY VOTE ON ARE THE OFFICIAL BUDGET FOR THE THREE FUNDS OPERATING FUND, CHILD NUTRITION FUND, DEBT SERVICE FUND AND THEN THE COMPENSATION PLAN.

SO YOU HAVE THOSE ON THE LEFT HAND SIDE OF YOUR FOLDER.

THE RIGHT HAND SIDE OF YOUR FOLDER HAS PRINTOUTS OF ALL OF THE INFORMATION THAT'S LINKED IN THESE SLIDES.

JUST SO IF YOU WANT TO REFER TO IT WHILE WE GO THROUGH, YOU DON'T HAVE TO CLICK AROUND ON YOUR DEVICE OR ANYTHING.

FEEL FREE TO STOP ME AS I'M GOING THROUGH THE PRESENTATION WITH ANY QUESTIONS THAT YOU HAVE.

SO HERE WE GO.

THESE ARE ALL THE THINGS THAT WE'RE GOING TO TALK ABOUT TONIGHT.

SO I'M GOING TO WALK YOU THROUGH THE BUDGET PROCESS, TALK TO YOU ABOUT SOME OF THE ASSUMPTIONS THAT WE MAKE WHEN WE BUDGET, SHOW YOU SOME FINANCIAL BENCHMARKING INFORMATION AND THEN GO THROUGH THE BUDGET, THE PROPOSED BUDGET FOR EACH OF THE THREE FUNDS AND THEN TALK ABOUT THE NEXT STEPS.

SO WHEN WE TALK ABOUT THE BUDGET PROCESS AND WHAT GOES INTO BUILDING OUR SCHOOL DISTRICT BUDGET, THERE ARE REALLY THREE KEY GROUPS OF PEOPLE THAT WORK ON THE DEVELOPMENT OF THIS.

FIRST IS DISTRICT BUDGET OWNERS.

SO OUR DISTRICT BUDGET OWNERS ARE OUR CAMPUS PRINCIPALS AND THEN OUR CENTRAL DEPARTMENT DIRECTORS.

THEY EACH OWN AN INDIVIDUAL PIECE OF THE OVERALL DISTRICT'S BUDGET, AND THEY'RE RESPONSIBLE FOR ADMINISTERING THEIR OWN PIECE OF THE BUDGET.

SO WE TAKE OUR OUR BIG DISTRICT BUDGET AND WE PARCEL IT OUT INTO HUNDREDS AND THOUSANDS OF DIFFERENT LINE ITEMS. AND WE GIVE PORTIONS OF THOSE TO DIFFERENT BUDGET OWNERS.

THEY'RE RESPONSIBLE EVERY YEAR FOR TAKING A LOOK AT THE BUDGETS THAT THEY OPERATE.

AND ANALYZING THEM, LOOKING AT THE RESOURCES THAT THEY HAVE AVAILABLE, LOOKING AT THE RESOURCES THAT THEY'RE GOING TO NEED FOR THE NEXT YEAR, IDENTIFYING ANY PLACES THAT THEY MIGHT BE ABLE TO SAVE MONEY, AND THEN ALSO IDENTIFYING ANY NEEDS THAT THEY HAVE MOVING FORWARD THAT THEY DON'T CURRENTLY HAVE RESOURCES FOR.

THOSE BUDGET OWNERS THEN MAKE RECOMMENDATIONS THROUGH A FORMAL RECOMMENDATION PROCESS TO THE INSTRUCTIONAL SUPPORT TEAM AND DR.

WALDRIP AND WE SPEND A LOT OF TIME AS AN ISD GOING THROUGH THOSE, GOING THROUGH THOSE REQUESTS AND RECOMMENDATIONS, LOOKING AT ALL OF THE BACKGROUND DATA THAT'S PROVIDED FOR THOSE REQUESTS AND GETTING FEEDBACK FROM EITHER INTERNAL OR EXTERNAL STAKEHOLDERS IF WE NEED IT, DEPENDING ON WHAT THOSE REQUESTS ARE, AND ULTIMATELY PUTTING THAT INTO A PACKAGE TO MAKE A RECOMMENDATION TO YOU GUYS, WHICH IS WHAT YOU'RE GOING TO SEE TODAY.

AND THEN THE BOARD, YOU GUYS ARE THE THIRD PIECE OF THE PUZZLE.

YOU GUYS ARE THE ONES THAT SET THE OVERALL DISTRICT VISION AND GOALS THAT WE USE TO DEVELOP OUR BUDGET RECOMMENDATIONS.

YOU GUYS PROVIDE FEEDBACK TO US IN WORKSHOPS LIKE THIS ON THE BUDGET DEVELOPMENT PROCESS, AND THEN YOU ULTIMATELY WILL APPROVE THE BUDGET FOR THOSE THREE FUNDS AND THE COMPENSATION PLAN.

SO THAT'S A LITTLE BIT ABOUT JUST HOW THE BUDGET DEVELOPMENT WORKS AND WHO'S RESPONSIBLE FOR WHAT.

SEVERAL YEARS AGO.

IN 2016, WE ADOPTED A PRIORITIES BASED BUDGETING APPROACH.

PRIORITIES BASED BUDGETING ESSENTIALLY JUST MEANS THAT WE GO THROUGH A FORMAL PROCESS EVERY YEAR WHERE WE LOOK AT WHAT OUR PRIORITIES ARE AND WHAT WE NEED TO SPEND MONEY ON.

AND BEFORE WE ADD THOSE OR RECOMMEND ADDING THOSE TO THE BUDGET, WE LOOK FOR COST SAVINGS OPPORTUNITIES THAT MAY ALREADY EXIST.

AND SO WE WANT TO MAKE SURE THAT WE FIRST REDUCE OR ELIMINATE SPENDING IN AREAS THAT EITHER DON'T ALIGN WITH OUR PRIORITIES OR THAT WE THAT WE DON'T NECESSARILY NEED TO SPEND THOSE RESOURCES ON ANYMORE.

PUT THOSE BACK INTO THE BUDGET AND USE THOSE FIRST FOR ANY NEW PRIORITIES OR NEW INITIATIVES THAT WE HAVE GOING ON.

WE ALSO LOOK EVERY YEAR, ESPECIALLY AT A DEPARTMENT LEVEL, FOR EFFICIENCIES THAT WE CAN GAIN.

[00:05:03]

SO IS ONE DEPARTMENT PAYING FOR SOMETHING THAT MAYBE WE CAN LEVERAGE FROM ANOTHER DEPARTMENT INSTEAD OF CONTINUING TO PAY FOR THAT OR THINGS LIKE THAT? SO WE LOOK FOR EFFICIENCIES EVERY YEAR THROUGH THIS PROCESS ALSO.

SO THAT IN A NUTSHELL IS PRIORITIES BASED BUDGETING.

ON THE RIGHT HAND SIDE OF YOUR SLIDE, YOU'LL SEE THE BUDGET PRINCIPLES, THE FIVE BUDGET PRINCIPLES THAT WE HAVE USED FOR YEARS PRIOR TO ME BEING IN FRISCO ISD.

BASICALLY THAT GUIDE OUR BUDGET DEVELOPMENT PROCESS.

SO JUST KIND OF THOSE SAME KEY TENETS THAT WE USE EVERY YEAR TO MAKE SURE THAT WE'RE MOVING IN THE RIGHT DIRECTION WHEN WE'RE ADOPTING THE BUDGET.

LIKE I MENTIONED BEFORE, THIS PROCESS REALLY IS A YEAR LONG PROCESS.

OUR FISCAL YEAR GOES FROM JULY TO JUNE AND WE REALLY START IN JULY AND WORK AT VARYING PACES THROUGHOUT THE YEAR UNTIL WE OFFICIALLY ADOPT THE BUDGET FOR THE FOLLOWING YEAR IN JUNE.

WE KIND OF HAVE FOUR KEY STEPS TO OUR BUDGET PROCESS REQUEST, REVIEW, REVISE AND RECOMMEND.

SO I TALKED A LITTLE BIT ABOUT THE REQUEST PROCESS WITH THE BUDGET OWNERS AND THE REVIEW PROCESS WHERE ISD HAS MEETINGS TO REALLY COMB THROUGH ALL OF THOSE REQUESTS.

THE REVISED PROCESS IS REALLY IMPORTANT.

WE WORK REALLY HARD TO ACHIEVE AS MANY RESOURCE REQUESTS AS WE CAN WITH THE FINITE AMOUNT OF FUNDS THAT WE HAVE.

SO SOMETIMES THAT MEANS WE HAVE TO MAKE TRADEOFFS, AND SOMETIMES THAT MEANS WE HAVE TO PRIORITIZE THINGS.

NOBODY'S GOING TO MAKE A RECOMMENDATION IF THEY DON'T THINK IT'S GOING TO BE A GOOD IDEA OR IF IT'S NOT GOING TO BE GOOD FOR KIDS, OR IF IT'S NOT GOING TO BE GOOD FOR STAFF.

WE JUST CAN'T DO EVERYTHING.

AND SO THAT REVISED PROCESS IS REALLY IMPORTANT.

WE SPEND A LOT OF TIME AND EFFORT GOING THROUGH WHAT THOSE PIECES LOOK LIKE AND HOW WE CAN BEST FIT THEM TOGETHER TO GET US TO MAXIMIZE THE AMOUNT OF MONEY THAT WE'RE RECOMMENDING.

AND THEN AND THEN WE ULTIMATELY WILL RECOMMEND A BUDGET TO YOU.

I WANTED TO TAKE JUST A MINUTE TO TALK ABOUT CAMPUS BUDGETS.

MOST OF WHAT YOU SEE IN TERMS OF RECOMMENDATIONS FOR NEW APPROPRIATIONS COMES FROM DEPARTMENT BUDGET OWNERS.

CAMPUS BUDGETS ARE DONE A LITTLE BIT DIFFERENTLY.

WE GIVE CAMPUSES WHAT WE CALL A PER PUPIL ALLOTMENT, EXCUSE ME, AND THAT IS BASED ON THE ENROLLMENT THAT THEY HAVE AT THEIR CAMPUS.

AND THAT THAT ALLOTMENT IS WEIGHTED BASED ON THE TABLE THAT YOU SEE ON YOUR SCREEN FOR THE SPECIFIC POPULATIONS AT THEIR CAMPUS.

SO IT'S SIMILAR TO THE WAY THE STATE GIVES US MONEY AS A DISTRICT.

WE THEN GIVE CAMPUSES MONEY THE SAME WAY.

SO FOR FOR EACH CAMPUS, THEY'LL GET A SET AMOUNT OF MONEY FOR THEIR TOTAL ENROLLMENT.

BUT THEN IF THEY HAVE STUDENTS IN THE GIFTED AND TALENTED PROGRAM OR STUDENTS THAT ARE EDUCATIONALLY DISADVANTAGED OR STUDENTS THAT ARE IN THE SPECIAL ED PROGRAM OR STUDENTS BEING SERVED THROUGH DYSLEXIA, THEY'LL GET AN ADDITIONAL AMOUNT OF MONEY FOR EACH OF THOSE KIDS SO THAT THEY HAVE EXTRA MONEY TO PUT TOWARDS THOSE EXTRA PROGRAMS ON THEIR CAMPUS. THAT MONEY IS GIVEN TO CAMPUSES BASED ON THEIR PROJECTED ENROLLMENT FOR THE NEXT YEAR, SINCE WE ARE STILL GROWING SO FAST AND THEN WE SETTLE UP WITH THEM IN JANUARY IF THEIR ENROLLMENT GREW BY MORE THAN WE EXPECTED IT TO.

WE'LL GIVE THEM A LITTLE BIT ADDITIONAL FOR THE SPRING SEMESTER.

ONE OF THE THINGS THAT WE'VE STARTED DOING THE PAST COUPLE OF YEARS AS AN ISD IS BEFORE WE REALLY START LOOKING AT ANY OF THE REQUESTS THAT ARE COMING THROUGH FROM BUDGET OWNERS, WE SIT DOWN AND HAVE A MEETING AND WE ESTABLISH WHAT WE CALL OUR STRATEGIC FOCUS AREA.

SO WHAT ARE THE THINGS THAT ARE IMPORTANT TO US IN TERMS OF SETTING THE BUDGET FOR THE NEXT YEAR? AND WE USUALLY HAVE TWO OR THREE KIND OF KEY FOCUS AREAS THAT WE WANT TO MAKE SURE WE LOOK AT THOSE FIRST.

AND THEN IF THERE'S ADDITIONAL MONEY LEFT OVER, WE CAN LOOK AT SOME OF THE OTHER THINGS THAT ARE STILL PRIORITIES, BUT MAYBE DON'T RISE TO THIS LEVEL OF A STRATEGIC FOCUS AREA.

SO WE DID THAT SAME THING THIS YEAR.

WE MET IN DECEMBER AND WE LOOKED AT WHAT ARE THE BIG THINGS WE NEED TO FOCUS ON? AND SO YOU SEE ON THE LEFT SIDE OF THE SCREEN, WE'VE BEEN TALKING A LOT ABOUT STRATEGIC CHANGE AND ABOUT THAT HIERARCHY OF PURPOSE THAT I'VE BEEN SHOWING YOU AND HOW WE'RE REALLY WORKING TO TIE EVERYTHING THAT WE DO BACK TO THAT FUTURE READY FRAMEWORK, BACK TO OUR MISSION AND VISION, AND ALIGN ALL OF OUR RESOURCES TO THAT FUTURE READY FRAMEWORK.

SO THAT'S WHAT WE DID.

OUR THREE FOCUS AREAS ALIGNED TO THESE TWO PIECES OF THE FUTURE READY FRAMEWORK, THE LEARNING ORGANIZATION AND STRATEGIC COLLABORATIVE LEADERSHIP, AND YOU CAN SEE THE KEY QUESTIONS THAT ARE PIECES OF THOSE FRAMEWORK THAT WE'RE ANSWERING THERE.

SO THESE ARE OUR THREE FOCUS AREAS FOR NEXT YEAR.

THE FIRST ONE IS, OF COURSE, ENROLLMENT.

THAT HAS BEEN ONE OF OUR FOCUS AREAS FOR THE LAST SEVERAL YEARS.

WE WANT TO MAKE SURE THAT WE'RE STAFFING THE NEW SCHOOLS APPROPRIATELY.

WE'RE OPENING TWO NEW SCHOOLS IN THE FALL, PANTHER CREEK AND MINETT, AND WE NEED TO MAKE SURE THAT WE STAFF THOSE APPROPRIATELY, BUT ALSO EFFICIENTLY, AND THEN

[00:10:01]

ALSO MAINTAIN TARGETED CLASS SIZES FOR THE REST OF THE DISTRICT.

BECAUSE EVEN THOUGH WE'RE OPENING THOSE TWO SCHOOLS, THERE IS ENROLLMENT GROWTH HAPPENING IN OTHER AREAS OF THE DISTRICT.

SO THAT IS PRIORITY NUMBER ONE FOR US.

PRIORITY NUMBER TWO IS COMPENSATION.

WE WANT TO MAKE SURE THAT WE MAINTAIN A COMPETITIVE COMPENSATION PACKAGE WHILE UNDERSTANDING THAT WE HAVE SOME INCOME LIMITATIONS.

SO WE TALKED IN OUR WORKSHOP IN FEBRUARY.

WE DID THAT LITTLE GAME.

FOR THOSE OF YOU THAT WERE THERE, WE PLAYED THAT LITTLE GAME ABOUT HOW DO YOU BALANCE YOUR PRIORITIES WHEN YOU'RE OPENING A CAMPUS AND YOU WANT TO BE ABLE TO STAFF THOSE SCHOOLS AND YOU ALSO WANT TO BE ABLE TO GIVE RAISES, AND YOU ALSO NEED TO DO ALL THESE OTHER THINGS AND YOU HAVE A FINITE AMOUNT OF MONEY AVAILABLE TO YOU.

SO WE UNDERSTAND THAT WE HAVE INCOME LIMITATIONS, BUT WE STILL WANT TO MAKE SURE THAT WE CAN DO AS MUCH COMPENSATION WISE AS WE POSSIBLY CAN FOR OUR STAFF.

AND THEN THE THIRD STRATEGIC FOCUS AREA IS A LITTLE BIT DIFFERENT.

WE'VE TALKED ABOUT THIS A LITTLE BIT AT A COUPLE OF BOARD MEETINGS OVER THE LAST FEW MONTHS.

BUT STRATEGIC ABANDONMENT IS SOMETHING THAT WE HAVE REALLY BEEN LOOKING AT AS A LEADERSHIP TEAM.

STRATEGIC ABANDONMENT REALLY IS LOOKING AT THE RESOURCES THAT ARE NEEDED TO SUSTAIN OUR OPERATIONS.

AND BASICALLY WHAT WHAT ARE WE DOING? WHAT ARE WE SPENDING RESOURCES ON THAT IS NOT NECESSARILY PRODUCING THE RETURN ON INVESTMENT THAT WE WERE HOPING FOR, OR THAT'S NOT AS EFFICIENT AS IT COULD BE TO GIVE US THE SAME RETURN ON INVESTMENT.

WE TALK ABOUT THIS A LOT IN TERMS OF RESOURCES LIKE SPENDING, BUT ALSO JUST IN TERMS OF TIME AND ENERGY AND EFFORT THAT OUR PEOPLE ARE PUTTING INTO THINGS.

AND SO THIS HAS BEEN A BIG FOCUS AREA.

AND BECAUSE OF THAT, WE DON'T HAVE AS MANY RECOMMENDATIONS TO ADD TO THE BUDGET AS WE NORMALLY WOULD BECAUSE WE REALLY WANT TO TAKE THE NEXT YEAR TO LOOK AT HOW OUR RESOURCES ARE DEPLOYED, HOW WE'RE USING DIFFERENT RESOURCES, WHETHER IT'S MONEY OR PEOPLE OR WHATEVER, AND AND MAKE SURE THAT WE REALLY ARE AS EFFICIENT AND EFFECTIVE AS POSSIBLE BEFORE WE START ADDING MORE.

SO THAT'S THAT'S BEEN A BIG THING THAT WE HAVE BEEN FOCUSING ON AND WE'LL CONTINUE TO FOCUS ON OVER THE NEXT YEAR.

SO CRITICAL FACTORS INFLUENCING THE BUDGET.

THESE ARE KIND OF THE KEY ASSUMPTIONS THAT WE HAVE TO MAKE WHEN WE PROJECT HOW MUCH REVENUE THAT WE'RE GOING TO HAVE AND WHAT KINDS OF THINGS WE'RE GOING TO HAVE TO OR BE ABLE TO SPEND IT ON.

SO ENROLLMENT IS OBVIOUSLY NUMBER ONE BECAUSE ENROLLMENT DRIVES THE REVENUE THAT WE GET.

CAPITAL PLANNING IS IMPORTANT.

WE'RE STILL A FAST GROWTH DISTRICT.

WE'RE STILL BUILDING AND OPENING SCHOOLS.

SO WE HAVE TO MAKE SURE WE KNOW WHAT RESOURCES ARE GOING TO BE NEEDED WHEN THOSE SCHOOLS ARE EXPECTED TO OPEN.

THE ECONOMY IS A MAJOR DRIVER THIS YEAR.

IT ALWAYS IS, BUT THIS YEAR, MORE THAN MORE THAN IT HAS BEEN IN THE PAST.

AND THEN THE TEXAS LEGISLATURE OBVIOUSLY MEETS EVERY OTHER YEAR, AND YOU NEVER KNOW WHAT'S GOING TO HAPPEN WHEN THEY'RE IN SESSION.

SO IN TERMS OF ENROLLMENT HISTORY, JUST MOVE THIS SO YOU CAN SEE.

THIS IS OUR AVERAGE ENROLLMENT GROWTH GOING BACK TO 2011.

AND SO EXCEPT FOR THE 2020-2021 SCHOOL YEAR WHEN COVID HAPPENED, WE'VE GROWN BETWEEN 1780 AND 3660 STUDENTS ANNUALLY SINCE 2011. AND THAT'S JUST PHENOMENAL.

IT'S BEEN HYPER GROWTH.

I WOULD SAY WE'VE GONE FROM HYPER GROWTH TO FAST GROWTH.

SO IT'S IT'S SOMETHING THAT REALLY CHANGES THE WAY THAT WE LOOK AT HOW WE DEPLOY OUR RESOURCES WHEN WE'RE IN HYPER GROWTH MODE AND WE'RE ADDING 3500 STUDENTS A YEAR, IF WE OPEN A SCHOOL, THAT SCHOOL IS GOING TO FILL UP IMMEDIATELY.

WHEN WE'RE IN FAST GROWTH MODE, WHICH WE'RE IN NOW, WE'RE NOT ADDING THAT MANY.

WE'RE NOT ADDING A WHOLE SCHOOL'S WORTH OF KIDS, BUT WE STILL NEED TO OPEN A SCHOOL.

SO THE REVENUE THAT WE'RE GOING TO GENERATE TO OFFSET THE COST OF OPENING A SCHOOL IS GOING TO TAKE A LITTLE BIT LONGER.

WE'RE SO FAST GROWTH.

WE STILL NEED ADDITIONAL SCHOOLS.

WE STILL NEED THOSE RESOURCES.

IT'S JUST GOING TO TAKE US A LITTLE BIT LONGER TO RECOVER.

WE HAVE SOME ECONOMIES OF SCALE THAT HAPPEN WHEN WE OPEN SCHOOLS NOW THAT WE DIDN'T REALLY HAVE BACK WHEN WE WERE HYPER GROWTH.

YOU CAN ALSO SEE THAT SECONDARY ENROLLMENT HAS BEEN OUTPACING ELEMENTARY ENROLLMENT FOR THE LAST SEVERAL YEARS.

I THINK THAT'S SOMETHING THAT WE'VE TALKED ABOUT A LOT THAT DR.

FOUCHE HAS TALKED ABOUT A LOT WHEN WE LOOK AT ZONING AND CAPITAL PLANNING AND THAT KIND OF THING.

BUT I WILL SAY THIS YEAR WAS OUR BIGGEST KINDERGARTEN CLASS IN THE LAST DECADE WHEN I LOOK BACK IN ENROLLMENT TRENDS.

SO. EVER.

EVER. WELL, I ONLY LOOKED BACK TEN YEARS, BUT EVER.

IT WAS OUR BIGGEST KINDERGARTEN CLASS EVER.

SO. SO WE STILL NEED THOSE ELEMENTARY SCHOOLS.

MY POINT IN POINTING THAT OUT IS WE'RE NOT GOING TO HAVE ELEMENTARY SCHOOLS THAT ARE GOING TO BE EMPTY.

[00:15:03]

RIGHT. WE'RE STILL THOSE ARE STILL FULL.

WE STILL NEED MORE.

AND SO IT'S SOMETHING THAT WE HAVE TO PLAN FOR.

THIS IS THE ENROLLMENT PROJECTION FOR THE NEXT FIVE YEARS.

SO ANY TIME I SHOW YOU FIVE YEAR INFORMATION WHEN IT COMES TO THE BUDGET FOR FINANCIAL PLANNING PURPOSES, WE ALWAYS LOOK ONE YEAR BACK AND THEN AT THE CURRENT YEAR AND THEN THREE YEARS FORWARD.

AND THAT'S WHAT THAT'S HOW OUR FINANCIAL PLAN IS BASED.

AND SO THAT'S HOW A LOT OF THE DATA THAT YOU'LL SEE IN THIS PRESENTATION IS BASED.

SO IF YOU LOOK IF YOU LOOK FORWARD, THIS IS HOW WE HAVE PROJECTED ENROLLMENT FOR BUDGET PURPOSES FOR 2022-2023.

I'M USING PASA, WHO'S OUR THIRD PARTY DEMOGRAPHER.

I'M USING THEIR LOW GROWTH SCENARIO.

SO THEY GIVE US THREE GROWTH SCENARIOS EVERY YEAR.

LOW, MEDIUM, LOW.

MIDDLE AND HIGH. MODERATE, LOW, MODERATE AND HIGH.

HISTORICALLY WE'VE USED THE MODERATE GROWTH SCENARIO.

WE STOPPED DOING THAT WHEN COVID HAPPENED BECAUSE IT WAS A LITTLE BIT UNCERTAIN HOW MUCH WE WERE GOING TO GROW BY.

I USED THE LOW ENROLLMENT GROWTH SCENARIO FOR THE CURRENT 2021-2022 SCHOOL YEAR, AND WE WERE OFF FROM THAT BY 71 KIDS. SO IT PROVED THE LOW GROWTH SCENARIO PROVED TO BE PRETTY ACCURATE FOR THIS SCHOOL YEAR.

IT STILL FEELS A LITTLE BIT UNCERTAIN.

AND TO BE CONSERVATIVE WITH BUDGETING, WE WENT AHEAD AND USED THE LOW GROWTH MODEL AGAIN FOR THE FOLLOWING YEAR, BUT THEN FOR 2023 AND BEYOND WE ADDED THE MODERATE GROWTH NEW STUDENTS.

SO IT'S KIND OF A MIX OF THE TWO MODELS.

SO THE ENROLLMENT GROWTH THAT YOU'RE GOING TO SEE HERE AND THAT WE USE FOR BUDGET PURPOSES IS GOING TO BE DIFFERENT THAN THE ENROLLMENT GROWTH THAT YOU'RE GOING TO SEE FROM A PRESENTATION THAT TODD DOES OR SCOTT DOES.

WHEN WE TALK ABOUT CAPITAL PLANNING OR FROM INFORMATION THAT YOU OR ENROLLMENT INFORMATION THAT YOU SEE ON DISTRICT MATERIALS.

BUT FOR BUDGET PURPOSES, IT'S ALWAYS OF THE OCTOBER ENROLLMENT SNAPSHOT, WHICH IS THE LAST FRIDAY IN OCTOBER, AND THAT'S THE NUMBER THAT WE USE TO PROJECT REVENUE.

I MIGHT JUST SAY WE'RE REAL INTERESTED TO SEE THE ENROLLMENT THIS FALL.

THIS IS THE FALL THAT THE DEMOGRAPHERS FOR A COUPLE OF YEARS HAVE BEEN SAYING.

WELL, GIVE IT A LITTLE TIME AFTER COVID AND AFTER THE STRANGE ENROLLMENT YEARS.

BUT, YOU KNOW, WHEN YOU SEE WHEN YOU DRIVE AROUND, THERE'S A LOT OF INVENTORY.

SO WE REALLY GET KIDS, NEW STUDENTS FROM A COUPLE OF WAYS.

ONE IS THROUGH REGENERATION OF CURRENT HOMES, SOMEBODY SELLS THEIR HOME TO A FAMILY WITH SMALLER STUDENTS.

RIGHT. AND THEY RETIRE, MOVE AWAY, AND THEN NEW NEIGHBORHOODS.

AND SO EVEN THOUGH LIKE THE GROVE AND THERE'S SOME NEW NEIGHBORHOODS GOING ON, THERE MAY NOT BE AS MANY AS THERE'S BEEN IN THE PAST UNTIL THESE TWO REALLY BIG ONES HIT IN THE NEXT COUPLE OF YEARS, BUT YOU'RE ALREADY SEEING THOSE POP UP.

SO WE'RE REAL CURIOUS TO SEE WHAT THIS FALL IS GOING TO LOOK LIKE.

I KIND OF HAVE A HUNCH IT MIGHT BE A LITTLE ON THE LOW SIDE FOR WHAT WE'VE SEEN IN THE PAST, BUT THEN THE TWO YEARS AFTER THAT, MAYBE A LITTLE BIT MORE THAN WHAT THEY'RE PROJECTING BECAUSE OF THOSE TWO NEW NEIGHBORHOODS THAT ARE GOING TO COME ON.

BUT THAT'S JUST MY OPINION.

THANK YOU. SO ENROLLMENT GROWTH PLAYS A FACTOR INTO OUR CAPITAL PLAN AS WELL.

AND SO THIS IS THE CAPITAL PLAN THAT WE HAVE RIGHT NOW.

YOU CAN SEE WE'RE OBVIOUSLY OPENING OR PLANNING TO OPEN MINETT AND PANTHER CREEK IN THE FALL.

THE FOLLOWING FALL, 2023 WE'LL BE OPENING WORTHAM AND WILKINSON.

AND THEN IN THE FALL OF 2024, WE PLAN TO OPEN THE EXPANSION OF THE CTE CENTER AND THEN AT SOME POINT IN THERE WILL BE THE VISUAL AND PERFORMING ARTS CENTER.

MAYBE, MAYBE 2024, MAYBE LATER, THERE WILL BE SOME OPERATING COSTS ASSOCIATED WITH THAT.

SO ONE OF THE THINGS THAT WE HAVE TO DO WHEN WE BUDGET IS WE HAVE TO LOOK FORWARD FAR ENOUGH TO KNOW WHEN WE'RE OPENING SCHOOLS AND HOW MUCH MONEY THAT'S GOING TO COST, BECAUSE WE'VE GOT TO KIND OF PLUG THAT IN AS A PLACEHOLDER AND KNOW THAT ANY DECISIONS WE MAKE TODAY ARE GOING TO IMPACT OUR ABILITY TO ADD THAT MONEY TO OPEN THOSE SCHOOLS IN THE FUTURE. AND I KIND OF PUT DOWN IN THE BOTTOM CORNER OF THE SCREEN THE COST, THE APPROXIMATE COST THAT'S ROUNDED TO OPEN AN ELEMENTARY SCHOOL AND MIDDLE SCHOOL, AND A HIGH SCHOOL. AND LIKE I MENTIONED, THESE DAYS, WE'RE NOT ADDING ENOUGH ENROLLMENT GROWTH TO FILL UP THAT SCHOOL 100% IMMEDIATELY, WHICH MEANS WE'RE NOT GENERATING THE REVENUE IMMEDIATELY IN YEAR ONE TO OFFSET THE COST OF STAFFING THE SCHOOL.

WE STILL WILL, AND THERE IS SOME STATE AID AVAILABLE TO US WHEN WE OPEN SCHOOLS.

THE STATE RECOGNIZES THAT MOST DISTRICTS AREN'T IN HYPERGROWTH AND MOST DISTRICTS DON'T RECOUP THAT COST WITHIN YEAR ONE.

[00:20:01]

SO THERE IS SOME STATE AID AVAILABLE, BUT IT STILL CREATES, LIKE I SAID, SOME ECONOMIES OF SCALE.

I PUT HERE FOR YOU THE TWO BOND PROGRAMS THAT WE STILL HAVE AUTHORIZATION OUTSTANDING IN .

THE 2018 BOND PROGRAM, WHICH IS OUR MOST RECENT ONE.

WE HAVE JUST UNDER $126 MILLION LEFT.

IF YOU'LL REMEMBER, THAT BOND PROGRAM WAS INTENDED TO GET US TO 72,000 STUDENTS FOR THE SCHOOL BUILDINGS AND THEN BASICALLY A FIVE YEAR CYCLE FOR ALL THE THINGS THAT ARE ON A CYCLE, MAINTENANCE AND TECHNOLOGY AND THAT KIND OF THING.

SO WE'RE ESSENTIALLY NEARING THE END OF THAT BOND PROGRAM, EXCEPT FOR SOME OF THE SCHOOL BUILDINGS THAT ARE LEFT AUTHORIZED.

AND THEN IN THE 2014 PROGRAM, WE STILL HAVE $26 MILLION OF THAT AUTHORIZATION THAT IS NOT SOLD YET AND THAT HAS BEEN EARMARKED FOR ELEMENTARY SCHOOL NUMBER 44. WE HAVE SPENT SOME TIME TALKING WITH OUR CAPITAL PROJECTS COMMITTEE ABOUT THAT $26 MILLION AND ABOUT THE NEED FOR THAT ELEMENTARY SCHOOL.

LIKE I SHOWED YOU A FEW SLIDES AGO, THE GROWTH IS REALLY HAPPENING MORE AT THE SECONDARY LEVEL RIGHT NOW THAN THE ELEMENTARY LEVEL.

WE STILL HAVE TWO ELEMENTARY SCHOOLS IN THE 2018 BOND PROGRAM.

WE DON'T FORESEE NEEDING THAT MONEY TO BUILD AN ELEMENTARY SCHOOL.

SO ONE OF THE THINGS THAT WE'LL BE TALKING ABOUT OVER THE NEXT SIX MONTHS OR SO IS POTENTIALLY REPURPOSING THAT 2014 AUTHORIZATION TO HELP COVER SOME OF THE CONSTRUCTION COSTS THAT WE'RE SEEING WITH OUR 2018 PROJECTS, BECAUSE WE KNOW CONSTRUCTION COSTS ARE AT AN ALL TIME HIGH.

EVERY NEW BUILD IS GOING OVER WHAT WE EXPECTED IT TO BE IN 2018.

SO THAT WAS A RECOMMENDATION THAT CAME OUT OF THAT CAPITAL PROJECTS COMMITTEE.

SO INFLATION IS SOMETHING WE'RE STRUGGLING WITH, RIGHT? I THINK IT'S SOMETHING EVERYBODY IS STRUGGLING WITH.

THE BUREAU OF LABOR AND STATISTICS ESTIMATES THAT INFLATION INCREASED TO EIGHT AND ONE HALF PERCENT NATIONALLY IN MARCH 2022, WHICH IS THE HIGHEST PERCENT CHANGE IN CONSUMER PRICES SINCE 1982.

SO INFLATION IS AT RECORD HIGHS.

IT'S IMPACTING OUR ABILITY AS A SCHOOL DISTRICT TO PURCHASE GOODS AND SERVICES.

IT'S IMPACTING OUR STAFF'S ABILITY JUST FOR THEIR COST OF LIVING.

IT'S REALLY IT'S REALLY PLAYING A KEY ROLE IN EVERYTHING, EVERY DECISION THAT WE'RE MAKING WHEN IT COMES TO SPENDING MONEY.

UNFORTUNATELY WE GET TO SPEND MORE WHEN INFLATION IS HIGH, BUT WE DON'T GET TO GENERATE ADDITIONAL REVENUE TO COVER IT.

SO I THINK ONE OF THE THINGS THAT I WANT TO MAKE SURE THAT WE ALL UNDERSTAND IS THAT OUR REVENUE AS A SCHOOL DISTRICT IS NOT AT ALL IMPACTED BY INFLATION.

I THINK YOU GUYS UNDERSTAND WE DON'T GENERATE MORE MONEY WHEN PROPERTY VALUES RISE.

THE STATE IS THE BENEFICIARY OF RISING PROPERTY VALUES.

WE GET THE SAME AMOUNT OF MONEY PER STUDENT REGARDLESS OF WHAT OUR PROPERTY VALUES ARE.

WE THE BASIC ALLOTMENT IN THE SCHOOL FUNDING FORMULA IS STATIC.

IT HAS TO BE RE APPROPRIATED DURING THE LEGISLATIVE SESSION, IF THEY'RE GOING TO INCREASE IT, THE LEGISLATURE ESSENTIALLY HAS TO VOTE TO INCREASE IT.

IT'S NOT INDEXED TO INFLATION RIGHT NOW.

AND SO WE ARE REALLY AT THE MERCY OF THE STATE WHEN IT COMES TO GENERATING ADDITIONAL MONEY TO COVER INCREASING COSTS OF GOODS AND SERVICES.

THIS IS JUST KIND OF A CONSTRUCTION INDEX.

WE TALK A LOT ABOUT HOW CONSTRUCTION COSTS ARE MORE THAN WE EXPECTED THEM TO BE.

I WANTED TO PUT IT ON A GRAPH.

THIS LOOKS A LITTLE BIT FLAT, BUT IT'S REALLY 25% INCREASE IF YOU KIND OF DRILL INTO THAT WHERE THAT LINE IS GOING.

SO THE RED LINE IS ACTUAL SCHOOL BUILDING COSTS.

THIS IS A NATIONWIDE INDEX.

THE BLUE LINE IS THE RS MEANS INDEX FOR CONSTRUCTION.

I JUST REALLY PUT THIS IN HERE TO SHOW YOU THAT 25% INCREASE IN CONSTRUCTION COSTS SINCE 2018.

AND SO EVEN THOUGH WE DID OUR BEST TO BUILD IN ESCALATION IN OUR 2018 PROGRAM, IT WASN'T ENOUGH.

AND MOST OF OUR PROJECTS ARE COMING IN OVER BUDGET, WHICH IS ONE OF THE REASONS THAT WE'VE BEEN TALKING WITH OUR CAPITAL PROJECTS COMMITTEE, AND THAT RECOMMENDATION WAS MADE TO POTENTIALLY REPURPOSE THE $26 MILLION THAT'S CURRENTLY EARMARKED FOR AN ELEMENTARY SCHOOL TO HELP COVER THOSE OVERAGES.

PROPERTY VALUES ARE RISING JUST LIKE INFLATION IS.

I'VE PUT A CHART ON THE RIGHT HERE FOR HISTORICAL VALUE GROWTH, YOU CAN SEE FRISCO BECAUSE WE'RE FAST GROWTH, THE CITY IS ALSO FAST GROWTH.

[00:25:07]

STILL A REALLY SIGNIFICANT PORTION OF OUR VALUE.

GROWTH EACH YEAR COMES FROM NEW CONSTRUCTION, NOT JUST APPRECIATION OF EXISTING PROPERTY VALUES.

THIS IS THE PAST FIVE YEARS, MOVE THIS OUT OF THE WAY SO YOU CAN SEE WHAT YEAR IT IS.

THIS IS THE PAST FIVE YEARS.

I EXPECT 2022, WHICH IS THIS COMING TAX YEAR TO LOOK A LOT LIKE 2017 DID, WHERE 50 TO 60% OF OUR VALUE GROWTH IS COMING FROM APPRECIATION AND EXISTING PROPERTIES.

I'M SURE YOU'RE ALL FEELING THAT WITH THE TAX BILLS THAT YOU GOT ON YOUR OWN HOMES.

SO WE'RE PROJECTING AN 8.3% INCREASE IN PROPERTY VALUES FOR THE 2022 TAX YEAR, AND THAT IS INCLUDING THE ASSUMED LOSS IN VALUE FROM THE INCREASE IN HOMESTEAD EXEMPTIONS THAT WAS JUST VOTED ON IN MAY.

SO IF YOU DON'T KNOW, THE HOMESTEAD EXEMPTION WAS IT WAS VOTED TO INCREASE THAT FROM $25,000 TO $40,000 FOR A HOMESTEAD EXEMPTION FOR SCHOOL TAXES.

AND SO WE EXPECT TO LOSE SOME VALUE FROM THAT, AND THAT IS FACTORED INTO THAT ASSUMPTION.

WE ARE PRETTY CONSERVATIVE WHEN WE PROJECT PROPERTY VALUES.

IT DOESN'T MATTER SO MUCH ON THE OPERATIONS SIDE BECAUSE LIKE I SAID BEFORE, WE GET THE SAME AMOUNT OF MONEY PER STUDENT REGARDLESS OF HOW MUCH OUR PROPERTY VALUES GO UP OR DOWN.

THE ENTITLEMENT IS SET BASED ON THE NUMBER OF STUDENTS THAT WE HAVE.

IT DOES MATTER FOR OUR DEBT SERVICE PAYMENT AND THE AMOUNT OF MONEY THAT WE GENERATE FROM OUR DEBT SERVICE TAX RATE.

SO IT'S BETTER FOR US TO BE CONSERVATIVE IN OUR ESTIMATION OF VALUE GROWTH TO MAKE SURE THAT WE'RE GENERATING ENOUGH MONEY TO PAY OFF THAT DEBT THAN TO OVERSHOOT IT, OVERESTIMATE HOW MUCH OUR VALUES ARE GOING TO GROW BY AND NOT GENERATE ENOUGH MONEY TO PAY OFF OUR DEBT.

THESE ARE TAX RATE PROJECTIONS AGAIN, ONE YEAR BACK CURRENT YEAR THAT WE'RE LOOKING AT AND THREE YEARS FORWARD.

THERE'S A WHOLE LOT OF GROWTH ASSUMPTIONS BUILT INTO 2023 AND BEYOND.

THE M&O TAX RATE IS DEPENDENT NOT ONLY ON OUR OWN PROPERTY VALUE GROWTH LOCALLY, BUT ALSO ON STATEWIDE PROPERTY VALUE GROWTH. SO WE HAVE TO KIND OF BUILD IN SOME ASSUMPTIONS ABOUT HOW MUCH VALUES ARE GOING TO GROW ACROSS THE STATE.

I THINK THE THE STANDARD TO USE FOR JUST ESTIMATION PURPOSES IS ABOUT 4% BECAUSE THAT'S WHAT THAT'S WHAT SOME OF THE FOLKS THAT BUILD STATE AID TEMPLATES AND THAT KIND OF THING.

SO I THINK THAT'S ABOUT WHAT WE'VE USED IN HERE.

NONE OF THOSE TAX RATES ARE GOING TO BE REALLY ACCURATE, THOUGH, UNTIL WE KNOW HOW MUCH VALUES GROW BY.

WE EXPECT USING THE PROPERTY VALUES THAT I SHOWED YOU ON THE LAST SLIDE.

WE EXPECT NEXT YEAR'S TOTAL TAX RATE TO DECREASE BY A LITTLE OVER $0.04, DOWN FROM A $1.2672 DOWN TO SOMEWHERE AROUND $1.2214.

AND IF YOU REMEMBER, WE ARE REQUIRED TO COMPRESS OUR PROPERTY TAX, OUR M&O PROPERTY TAX RATE AS VALUES RISE.

SO THE STATE GIVES US WHAT OUR M&O TAX RATE NEEDS TO BE BASED ON OUR VALUE GROWTH AND STATEWIDE VALUE GROWTH.

I WANT TO MAKE IT CLEAR THAT WE GET PENALIZED IF WE REDUCE OUR TAX RATE BELOW WHAT THE STATE TELLS US TO SET IT AT.

SO FOR THE DEBT TAX RATE, IT'S A PRETTY STRAIGHTFORWARD FORMULA.

WE CALCULATE HOW MUCH DEBT WE NEED TO PAY OFF INTO OUR HOW MUCH HOW MONEY WE CAN GENERATE FROM CURRENT PROPERTY VALUES DIVIDED BY HOW MUCH DEBT WE NEED TO PAY OFF, AND THAT'S OUR DEBT TAX RATE. WE'VE ACTUALLY YOU GUYS HAVE KEPT OUR DEBT TAX RATE A LITTLE ARTIFICIALLY LOW BECAUSE WE'VE BEEN USING FUND BALANCE TO HELP PAY OUR DEBT PAYMENTS. SO WHEN YOU WHEN YOU DO THAT CALCULATION, IT ACTUALLY CALCULATES THAT OUR DEBT TAX RATE NEEDS TO BE HIGHER THAN $0.27.

BUT WE'VE HAD THE FORTUNE TO USE FUND BALANCE TO HELP PAY FOR SOME OF THOSE.

SO WE'VE BEEN ABLE TO KEEP THE DEBT TAX RATE AT $0.27 AND USE FUND BALANCE.

ON THE M&O SIDE THE STATE TELLS US WHAT OUR TAX RATE CAN BE.

IF WE WERE TO ADOPT A TAX RATE LOWER THAN THAT, THEY WOULD PROPORTIONATELY REDUCE OUR STATE AID.

SO WE WOULD BE PENALIZED IF WE LOWER OUR TAX RATE.

AND I JUST WANT TO MAKE SURE THAT THAT'S CLEAR BECAUSE I'M NOT SURE THAT'S SOMETHING EVERYBODY UNDERSTANDS.

I PUT DOWN HERE FOR YOU THE TAXES ON AN AVERAGE HOMESTEAD RESIDENCE IN FRISCO LAST YEAR.

COMPARED TO THIS YEAR, DESPITE THE HOMESTEAD EXEMPTION INCREASE AND THE TAX RATE COMPRESSION THAT WE'RE PROJECTING, THE TAX BILL ON AN AVERAGE HOME WILL INCREASE

[00:30:02]

BY ABOUT $955 NEXT YEAR.

THAT'S THAT'S INCLUDING THE HOMESTEAD EXEMPTION INCREASE.

THAT'S INCLUDING THE TAX RATE COMPRESSION.

IT IS IMPORTANT FOR PEOPLE TO KNOW THAT RESIDENTS HOMESTEADS ARE LIMITED TO A 10% APPRAISED VALUE INCREASE EVERY YEAR.

SO IF YOU'RE LIKE ME AND YOUR APPRAISAL WENT UP 30%, YOU'RE ONLY GOING TO GET ASSESSED FOR 10% OF THAT INCREASE.

BUT PROPERTY VALUES ARE RISING AND IT IS WHAT IT IS, I GUESS.

SO KIM, I THINK WE'VE THE TAX RATES GONE DOWN THE LAST FIVE YEARS AND IT LOOKS LIKE YOU'RE PROJECTING IT TO CONTINUE TO GO DOWN EVEN THOUGH WE DON'T GET EXTRA MONEY WHEN PROPERTY VALUES INCREASE ON THE M&O SIDE.

IS THAT CORRECT? THAT IS CORRECT.

WE HAVE, YOU KNOW, THE TEXAS LEGISLATURE IS THE NEXT SLIDE ON HERE.

AND THAT'S THAT'S KIND OF A NICE REMINDER THAT THE TEXAS LEGISLATURE ADOPTED HOUSE BILL THREE BACK IN 2019.

AND IT WAS REALLY IT WAS A LANDMARK BILL ON SCHOOL FINANCE.

WE WORKED REALLY CLOSELY WITH OUR LEGISLATIVE DELEGATION TO MAKE SURE THAT THEY UNDERSTOOD THE POTENTIAL IMPACTS THAT THAT BILL WOULD HAVE ON FRISCO ISD, BUT ALSO ON ALL PUBLIC SCHOOL DISTRICTS IN THE STATE, ESPECIALLY WITH REGARD TO PROPERTY TAXES.

IT'S REALLY GREAT THAT THEY WERE ABLE TO BUILD IN TAX RATE COMPRESSION WHEN OUR PROPERTY VALUES GO UP BECAUSE LIKE I SAID, WE DON'T GET TO KEEP IT ANYWAY.

SO IT'S BENEFICIAL FOR OUR HOMEOWNERS TO HAVE THEIR TAX BILLS REDUCED WHEN THEY'RE WHEN THEIR PROPERTY VALUES ARE RISING.

IT DOES NOT IMPACT OUTSIDE OF US BEING ABLE TO PAY OUR DEBT PAYMENTS.

IT DOES NOT IMPACT THE AMOUNT OF MONEY THAT WE GET FOR OPERATIONS IF HOME VALUES ARE GOING UP.

SO THAT'S BEEN REALLY GOOD.

AND THAT'S THE REASON THAT WE'VE BEEN ABLE TO REDUCE THE TAX RATE EVERY YEAR SINCE 2019, AND WE'LL CONTINUE TO BE ABLE TO REDUCE THAT TAX RATE.

LIKE I MENTIONED BEFORE, THE TEXAS LEGISLATURE MEETS EVERY OTHER YEAR.

THEY WILL MEET IN THE SPRING OF 2022 SO WE WILL BE INTERESTED TO SEE WHAT COMES OUT OF THAT, WHAT NEW LEGISLATION COMES OUT OF THAT SESSION.

THE COMPTROLLER DID REVISE HIS BIENNIAL REVENUE ESTIMATE IN MAY TO REFLECT AN ADDITIONAL $3.1 BILLION IN REVENUE AVAILABLE FOR GENERAL PURPOSE SPENDING.

HOPEFULLY SOME OF THAT MONEY WILL GO TOWARDS PUBLIC EDUCATION.

WE ARE ONE OF THE TWO LARGEST PIECES OF THE STATE BUDGET, US AND HEALTH CARE.

SO YOU KNOW, IT WILL BE INTERESTING TO SEE WHAT COMES OUT OF THAT.

WE DO HAVE A LEGISLATIVE COMMITTEE THAT WORKS TO HELP DEVELOP LEGISLATIVE PRIORITIES.

I KNOW I'M SERVING ON THE SCHOOL FINANCE COMMITTEE, AND WE'VE BEEN TALKING A LOT ABOUT THE FACT THAT INFLATION ISN'T ACCOUNTED FOR IN OUR IN OUR REVENUE FORMULA FUNDING, THAT KIND OF THING.

SO IT WILL BE INTERESTING TO SEE WHAT COMES OUT OF THAT.

I LISTED UP THERE THE INTERIM CHARGES FOR THE EDUCATION COMMITTEES.

I'M SURE WE CAN PROBABLY ADD SCHOOL SAFETY TO THAT LIST OF THINGS.

SO, YOU KNOW, ALL OF THESE THINGS ARE IMPORTANT TO US, WHETHER THEY SEEM LIKE THEY'RE TIED TO FINANCE OR NOT.

UNFUNDED MANDATES CAN COME OUT OF THEM.

WE HAVE TO JUST WE HAVE TO KNOW HOW EACH ONE OF THESE THINGS IMPACTS THE DISTRICT SO THAT WE KNOW HOW TO BUDGET MOVING FORWARD.

LIKE I SAID, HOPEFULLY SCHOOL FINANCE WILL BE A TOPIC ESPECIALLY RELATED TO INFLATION.

I WILL ALSO POINT OUT THAT $40 BILLION IN FUNDS FROM THE AMERICAN RESCUE PLAN ACT HAVE FLOWED THROUGH THE STATE OF TEXAS.

THE STATE HAS USED A LOT OF FEDERAL RESOURCES POST COVID TO HELP PAY FOR SOME OF THE COSTS THAT SCHOOL DISTRICTS HAVE INCURRED TO GET THROUGH THE PANDEMIC AND TO RECOVER FROM THE PANDEMIC.

TRS ACTIVE CARE INSURANCE PLAN WAS ONE OF THE BENEFICIARIES OF SOME OF THAT STIMULUS MONEY.

AND SO THAT'S ONE OF THE REASONS THAT THOSE PLAN RATES ARE NOT GOING TO BE INCREASING NEXT YEAR BECAUSE THEY WERE ABLE TO USE SOME STIMULUS FUNDING TO HELP BUY DOWN THOSE PREMIUMS. SHIFTING GEARS A LITTLE BIT, I WANTED TO SHOW YOU GUYS SOME FINANCIAL BENCHMARKING.

THIS IS SOMETHING THAT WE DO EVERY YEAR.

WE SELECT A GROUP OF PEER DISTRICTS AND COMPARE OUR SPENDING TO THEIR SPENDING ON A NUMBER OF DIFFERENT MEASURES . YOU HAVE IN YOUR FOLDER THE DETAILED REPORT, THE DETAILED BENCHMARKING REPORT.

[00:35:01]

I'M SORRY, THE NUMBERS ARE REALLY TINY.

THERE'S NINE DISTRICTS TO PRINT ON THERE AND I TRIED TO GET THEM ALL IN ONE PAGE.

SO I HAVE THE HIGHLIGHTS FOR YOU ON THE SLIDES, BUT IF YOU WANT TO LOOK AT THE DETAILS, IT'S IN YOUR FOLDER FOR YOU AND IT'S ALSO LINKED TO THIS PRESENTATION.

WE SELECTED OUR PEERS A LITTLE BIT DIFFERENTLY THAN WE HAVE IN THE PAST.

SO THE PAST SEVERAL YEARS I'VE GIVEN YOU A COUPLE OF DIFFERENT PEER DISTRICTS.

I'VE GIVEN YOU DISTRICTS THAT LOOK LIKE US IN TERMS OF SIZE AND DEMOGRAPHICS.

I'VE ALSO GIVEN YOU DISTRICTS THAT ARE RIGHT AROUND US GEOGRAPHICALLY, AND THEN I'VE GIVEN YOU THE 20 LARGEST SCHOOL DISTRICTS IN THE STATE BECAUSE WE'RE ONE OF THOSE 20.

THIS YEAR I TOOK A LITTLE BIT OF A DIFFERENT APPROACH AND I LOOKED AT THE HOUSE BILL THREE EFFICIENCY AUDIT REQUIREMENTS.

SO ONE OF THE THINGS THAT HOUSE BILL THREE DID WAS IT PUT A REQUIREMENT IN PLACE FOR ANY SCHOOL DISTRICT THAT WANTS TO GO OUT FOR A TAX RATIFICATION ELECTION. THEY HAVE TO HAVE AN EFFICIENCY STUDY DONE AND IT SETS SOME BASICALLY IS FINANCIAL BENCHMARKING.

AND SO WE ARE NOT PLANNING A TAX RATE ELECTION, BUT I THOUGHT THAT USING THAT SAME METHODOLOGY WOULD PROBABLY BE A GOOD WAY FOR US TO LOOK AT BENCHMARKING GOING FORWARD SINCE THE STATE HAS COME IN AND PUT SOME METHODOLOGY IN PLACE FOR US.

SO THIS THE TOP THREE BULLET POINTS UP THERE ARE THE WAYS THAT WE SELECTED OUR PEERS.

FIRST, IT HAD TO BE A PUBLIC SCHOOL DISTRICT, SO NOT A CHARTER WITH ENROLLMENT BETWEEN 50,000 AND 100,000 STUDENTS.

WE USED TEXAS SMART SCHOOLS, WHICH IS AN ORGANIZATION, I THINK TEXAS A&M RUNS THAT DATABASE.

SO SCHOOL DISTRICTS WITH A SMART SCORE FROM TEXAS SMART SCHOOLS OF 3.5 OR HIGHER.

IF YOU'RE INTERESTED IN LOOKING AT THEIR CRITERIA AND THEIR METHODOLOGY, YOU CAN CLICK ON THAT LINK THERE AND IT WILL TAKE YOU TO THEIR WEBSITE.

AND THEN ALSO A HIGH OR VERY HIGH COMPOSITE ACADEMIC PROGRESS FROM THE TEXAS SMART SCHOOLS RATING SYSTEM.

SO YOU CAN SEE THE EIGHT SCHOOL DISTRICTS THAT WE CHOSE BASED ON THAT CRITERIA.

AND YOU CAN SEE THIS IS ALL FISCAL YEAR 2021 BENCHMARKING BECAUSE THAT'S THE LAST YEAR THAT WE HAVE FULL AUDITED FINANCIAL DATA FROM.

SO YOU CAN SEE HOW THEY ALL STACK UP.

FUN FACT FRISCO ISD IS ONE OF ONLY THREE PUBLIC ISDS INDEPENDENT SCHOOL DISTRICTS IN THE STATE TO RECEIVE A SMART SCORE OF FIVE FOR ALL SIX YEARS THAT THIS RATING SYSTEM HAS BEEN IN PLACE.

SO ONE OF ONLY THREE OUT OF 1000 OR 1200.

HOWEVER MANY SCHOOL DISTRICTS THERE ARE.

SO I THINK THAT'S REALLY AWESOME.

THE OTHER TWO SCHOOL DISTRICTS ARE CONROE AND [INAUDIBLE].

CONROE YOU CAN SEE IS ONE OF THE PEER DISTRICTS THAT WE CHOSE, [INAUDIBLE] DIDN'T MAKE THE CUT BECAUSE THEY HAVE MORE THAN 100,000 STUDENTS.

SO ANYWAY, THAT'S SOMETHING I THINK WE SHOULD REALLY BE PROUD OF.

SO HERE'S THE HIGHLIGHTS FROM THAT BENCHMARKING.

THIS IS A GRAPH THAT SHOWS REVENUE AND EXPENDITURES FROM BOTH.

THE GENERAL FUND AND SPECIAL REVENUE FUNDS FOR BOTH FRISCO ISD AND OUR PEER DISTRICTS AS AN AVERAGE PER PUPIL FOR THE 2021 FISCAL YEAR.

SO YOU'LL SEE IN BLUE IS REVENUE.

THE DARK BLUE IS THE GENERAL FUND REVENUE AND THEN THE LIGHTER BLUE IS SPECIAL REVENUE FUND.

YOU CAN SEE THAT US AND OUR PEERS GENERATE ROUGHLY THE SAME AMOUNT OF MONEY PER STUDENT FROM THE GENERAL FUND BECAUSE OF THE WAY THE FUNDING FORMULA IS SET.

WHERE YOU GET ADDITIONAL MONEY IS FROM SPECIAL REVENUE FUNDS, WHICH ARE GRANT FUNDS.

THE MAJORITY OF OUR PEERS HAVE HIGHER, LOW SOCIOECONOMIC POPULATIONS THAN WE DO.

OURS IS SITTING RIGHT ABOUT 13%.

I BELIEVE THAT MIGHT BE ONE OF THE LOWEST PERCENTAGE WISE IN THE STATE.

OUR PEERS HAVE SIGNIFICANTLY HIGHER PERCENTAGE, LOW SOCIOECONOMIC POPULATIONS, AND LOW SOCIOECONOMIC POPULATIONS ARE WHAT GENERATE GRANT FUNDING FOR THE MOST PART. SO THERE ARE A NUMBER OF DIFFERENT GRANTS WITH A NUMBER OF DIFFERENT CRITERIA THAT YOU HAVE TO MEET IN ORDER TO GET FUNDING.

BUT THE LOW SES POPULATION PLAYS A ROLE IN A LOT OF THAT.

SO THAT'S ONE OF THE REASONS THAT THEY'RE ABLE TO GENERATE MORE REVENUE PER STUDENT THAN WE ARE.

YOU CAN ALSO SEE THERE THE EXPENDITURES FOR BOTH THE GENERAL FUND AND THE SPECIAL REVENUE FUND STACKED ON TOP OF THAT FOR 2021.

ONE OF THE THINGS THAT WE DON'T KNOW IS HOW MUCH BOTH REVENUE AND EXPENDITURES FOR COVID ARE SKEWED OR HOW MUCH THIS DATA IS SKEWED BY REVENUE AND EXPENDITURES FOR COVID.

SO REMEMBER, THIS IS THE 2020-2021 FISCAL YEAR, SO A FULL YEAR IMPACTED BY COVID.

EVERY DISTRICT RECEIVED A DIFFERENT AMOUNT OF MONEY, AGAIN, BASED ON LOW SOCIOECONOMIC POPULATIONS.

EVERY DISTRICT SPENT THAT MONEY A LITTLE BIT DIFFERENTLY.

[00:40:01]

AND I DID NOT GO DIG INTO EVERY ONE OF THOSE EIGHT SCHOOL DISTRICTS TO SEE HOW THEY SPENT THEIR MONEY AND COMPARE IT TO OURS.

EVERY SCHOOL DISTRICT HAS DIFFERENT NEEDS.

WE ALL SPENT OUR MONEY A LITTLE BIT DIFFERENTLY, SO THIS DATA COULD BE SKEWED BY THAT.

I DID GO BACK TO FISCAL YEAR 20 AND DO THE SAME BENCHMARKING WITH THE SAME GROUP.

IT DIDN'T CHANGE SIGNIFICANTLY.

THERE WERE LITTLE POCKETS HERE AND THERE THAT LOOK JUST A TINY BIT DIFFERENT.

BUT I THINK IF WE USE THIS SAME PEER GROUP OR A VERY SIMILAR PEER GROUP MOVING FORWARD, WE'LL START TO SEE THINGS LEVEL OUT MORE OF COMMONALITIES ONCE THOSE ESSER FUNDS EXPIRE.

THIS IS FUNCTIONAL SPENDING PER STUDENT FROM THE GENERAL FUND ONLY FOR FRISCO AND OUR PEERS.

SO FRISCO IS THE RED DOT, THE BLUE DOT IS THE PEER DISTRICT AVERAGE.

SO WHAT WE NOTICE HERE IS THAT OUR SPENDING PER STUDENT WAS KIND OF AT THE MEDIAN OF OUR PEER GROUP FOR THE INSTRUCTION, INSTRUCTIONAL SUPPORT AND GENERAL ADMINISTRATION FUNCTIONS.

AND WHEN I SAY MEDIAN, I MEAN IF YOU RANK THEM, IT'S FOUR OR FIVE, RIGHT? SO KIND OF RIGHT IN THE MIDDLE, WE ARE LOWER SIGNIFICANTLY FOR SPENDING PER STUDENT ON OPERATIONS.

THAT'S NOT BECAUSE WE'RE DOING ANYTHING MAGICAL, IT'S BECAUSE WE'RE NEWER THAN ALL OF THEM.

SO OUR BUILDINGS ARE NEWER, THEY DON'T REQUIRE AS MUCH MAINTENANCE AND WE TEND TO BE MORE EFFICIENT IN THAT AREA WITH SPENDING JUST BECAUSE WE'RE NEWER.

AGAIN, WE DON'T KNOW HOW MUCH THESE EXPENSES WERE SKEWED BY COVID.

OH, SORRY.

I GUESS I'M GOING TO HAVE TO STAND UP HERE IN A MINUTE.

I WAS TRYING TO MAKE IT MORE CASUAL.

OK. THE NEXT CHART IS PROGRAM SPENDING PER STUDENT.

SO THE PREVIOUS ONE WAS FUNCTIONAL SPENDING FUNCTIONS ARE WHAT YOU GUYS ARE USED TO SEEING WHEN WE LOOK AT BUDGETS BECAUSE YOU GUYS ADOPT THE BUDGET AT A FUNCTIONAL LEVEL.

THIS IS PROGRAMMATIC SPENDING FOR DIFFERENT GROUPS OF STUDENTS IN SPECIAL PROGRAMS. THESE ARE THE FIVE PROGRAMS THAT I CHOSE TO BENCHMARK AGAINST GIFTED AND TALENTED, SPECIAL EDUCATION, STATE COMPENSATORY EDUCATION, WHICH IS ADDITIONAL SERVICES FOR OUR AT RISK POPULATION, BILINGUAL ESL, AND THEN DYSLEXIA OR RELATED SERVICES.

AND SO FRISCO RANKS, WHEN YOU LOOK AT ALL OF THE SPENDING IN THE FIRST OR SECOND QUARTILE FOR ALL PROGRAMMATIC SPENDING EXCEPT STATE COMPENSATORY EDUCATION, A LOT OF STATE COMP ED OR A LOT OF COMPENSATORY SPENDING COMES FROM GRANTS, SPECIFICALLY TITLE ONE.

AND LIKE I SAID, WE HAVE A SMALLER PERCENTAGE OF LOW SOCIOECONOMIC STUDENTS THAN OUR PEERS DO.

SO THEY HAVE SIGNIFICANTLY MORE MONEY AVAILABLE TO THEM TO SPEND ON SOME OF THOSE SERVICES FOR STUDENTS AT RISK WITH TITLE ONE MONEY.

AND THIS GRAPH IS ALL FUNDS, NOT JUST GENERAL FUNDS.

SO I BELIEVE THAT'S WHY WE ARE LOWER THAN OUR PEERS IN STATE COMP AND EVERYTHING ELSE.

WE REALLY WERE RIGHT ON PAR, IF NOT SPENDING A LITTLE BIT MORE PER STUDENT FOR THOSE PROGRAMS. ALSO JUST SOMETHING INTERESTING THAT I NOTED WAS ONLY 4% OF OUR STUDENT POPULATION RECEIVES BILINGUAL OR ESL SERVICES.

THAT'S SOMETHING YOU QUALIFY FOR COMPARED TO OUR PEERS WHO SERVE 16 TO 34% OF OUR STUDENT POPULATION.

SO IN ADDITION TO OUR LOW SES POPULATION BEING SIGNIFICANTLY LOWER, PROPORTIONALLY, SO IS OUR BILINGUAL POPULATION.

PAYROLL AND STAFFING WAS ANOTHER BENCHMARK THAT WE LOOKED AT.

WE MOVE THIS OVER A LITTLE BIT.

SO THIS IS ALL FUNDS PAYROLL AS A PERCENT OF TOTAL SPENDING US COMPARED TO OUR PEERS.

SO YOU CAN SEE TOTAL AS A PERCENT OF TOTAL SPENDING PAYROLL COST US 87.3% COMPARED TO OUR PEERS, WHICH WAS JUST UNDER 85% OF TOTAL SPENDING FOR 2021.

OUR AVERAGE TEACHER SALARY WAS JUST SLIGHTLY HIGHER THAN THOSE PEER DISTRICTS AND OUR AVERAGE ADMINISTRATOR SALARY WAS ALSO JUST SLIGHTLY HIGHER THAN THOSE PEER DISTRICTS.

THE GRAPH ON THE BOTTOM SHOWS THE PROPORTION OF STAFF THAT MAKE UP THE TOTAL.

SO YOU CAN SEE TEACHERS, WE HAVE A SIGNIFICANTLY LARGER PROPORTION OF TEACHERS TO TOTAL STAFF THAN OUR PEER DISTRICTS DO.

OURS IS 58% OF TOTAL STAFF IS TEACHERS COMPARED TO OUR PEER DISTRICT AVERAGE, WHICH WAS 50%.

SO WHEN YOU LOOK AT THE BENCHMARKING IN DETAIL, YOU'LL SEE THAT WE RANK LOWEST IN NUMBER OF STUDENTS TO TOTAL STAFF.

SO THE RATIO TO TOTAL STUDENTS DIVIDED BY TOTAL STAFF, WE RANK LOWEST.

AND I THINK THAT'S REALLY BECAUSE OF HOW LEAN WE ARE ON THE PARAPROFESSIONAL AND AUXILIARY SIDE, WHICH YOU CAN SEE PRETTY CLEARLY FROM THIS GRAPH.

[00:45:02]

SO IT'S NOT IT'S NOT ABOUT STUDENTS TO TEACHERS.

WE RANK RIGHT IN THE MIDDLE FOR STUDENTS TO TEACHERS.

BUT IN TOTAL WE'RE WE'RE LOWER IN TERMS OF OUR RATIOS BECAUSE OF THOSE AUXILIARY SUPPORT STAFF.

SO I WANT TO POINT OUT THAT BENCHMARKING DOESN'T NECESSARILY DRIVE ANY OF THE DECISIONS WE MAKE, BUT IT'S GOOD TO GO BACK AND CHECK OURSELVES AGAINST OUR PEER DISTRICTS JUST TO MAKE SURE THAT WE'RE NOT SEEING ANY TRENDS ANYWHERE THAT WE NEED TO BE PAYING ATTENTION TO.

IT'S NOT GOING TO BE THE SOLE DETERMINANT FOR ANY DECISION THAT WE MAKE.

BUT LIKE I SAID, IT'S GOOD TO GO BACK AND BENCHMARK THOSE THINGS AND GET A FEEL FOR WHAT OTHER DISTRICTS ARE DOING.

IF WE SEE A DISTRICT SPENDING REALLY EFFICIENTLY IN ONE AREA, WE MAY CALL THEM AND SAY, WHAT IS IT THAT YOU'RE.

WHAT IS IT THAT YOU'RE DOING? CAN WE LEARN ANY LESSONS FROM YOU? SO THAT'S REALLY THE PURPOSE OF BENCHMARKING, BUT IT'S ALSO JUST REALLY INTERESTING INFORMATION.

ALL RIGHT. TIME TO DOVE INTO COMPENSATION.

SO I'M GOING TO GO THROUGH SOME COMPENSATION BENCHMARKING, AND THEN I'M GOING TO TALK TO YOU ABOUT OUR PROPOSED COMPENSATION PLAN FOR NEXT YEAR.

LIKE I MENTIONED AT THE BEGINNING, THE COMPENSATION PLAN IS ONE OF THE TWO THINGS THAT YOU GUYS WILL VOTE ON AT THE END OF JUNE.

ALL RIGHT, SO THIS IS OUR.

TEACHER PAY SCALE BENCHMARKING FOR THE 2021 2022 SCHOOL YEAR.

SO THE SCHOOL YEAR THAT WE JUST ENDED THE DARK BLUE LINE IS OUR LOCAL PAY MARKET.

SO THOSE ARE THE DISTRICTS IN THIS AREA, IN THE METROPLEX THAT WE COMPETE WITH FOR STAFF.

THE LIGHT BLUE LINE IS OUR PIER DISTRICT AVERAGE.

SO THOSE EIGHT PEER DISTRICTS THAT I JUST WENT THROUGH FOR FINANCIAL BENCHMARKING AND THEN THE RED LINE IS FRISCO ISD.

SO YOU CAN SEE WE'RE ALL PRETTY MUCH IN THE SAME PLACE IN TERMS OF OUR TEACHER PAY SCALE FOR NEWER TEACHERS, KIND OF TEACHER 0 TO 5.

AND THEN WE START TO PULL AWAY FROM THAT PEER GROUP WHEN IT COMES TO TEN YEARS AND ABOVE FOR OUR TEACHER PAY SCALE.

THIS IS THAT SAME GRAPH JUST A LITTLE FADED WITH A LINE FOR OUR PROPOSED TEACHER PAY SCALE FOR NEXT YEAR FOR 2022 -2023. SO WE ARE PROPOSING MOVING BEGINNING TEACHER PAY FROM $56500 TO $58250 AND KEEPING ESSENTIALLY THE SAME PROPORTION, THE SAME INCREASE BETWEEN YEARS OF EXPERIENCE THAT WE HAVE IN OUR CURRENT PAY SCALE.

JUST SHIFTING THAT WHOLE THING UP.

I WILL GO AHEAD AND SAY THAT WE'VE ALL BEEN WATCHING THE NEWS.

WE KNOW THAT OTHER DISTRICTS IN THIS AREA ARE GOING HIGHER THAN 58000 TO 54 STARTING TEACHER PAY.

WE SIMPLY CAN'T AFFORD TO GO HIGHER THAN THAT.

I DON'T REALLY KNOW ANOTHER WAY TO SAY THAT LOOKING AT WHAT OTHER DISTRICTS ARE DOING AND AT THEIR PROPOSED BUDGETS, THEY OTHER DISTRICTS HAVE SIGNIFICANT AMOUNTS OF OF ESSER MONEY THAT THEY'RE ABLE TO HELP OFFSET TO HELP SUPPLANT COSTS, AT LEAST FOR THE NEXT YEAR WHILE THOSE THOSE FUNDS ARE STILL AVAILABLE.

OTHER DISTRICTS ARE ADOPTING REALLY SIGNIFICANT DEFICIT BUDGETS.

EVERYBODY'S TAKING A DIFFERENT APPROACH TO THIS.

BUT THE LABOR MARKET IS WHAT IT IS.

IT'S VERY COMPETITIVE.

AND THE RECOMMENDATION THAT WE'RE GIVING YOU GUYS IS AS COMPETITIVE AS WE FELT WE COULD POSSIBLY BE WITH THE RESOURCES THAT WE HAVE, KNOWING THAT WE'RE ABOUT TO OPEN TWO CAMPUSES AND TWO CAMPUSES THE FOLLOWING YEAR.

SO HERE IS OUR PROPOSAL FOR RAISES.

WE ARE PROPOSING A 4% OF SALARY RAISE FOR EMPLOYEES ON THE TEACHER PAY SCALE AND ALSO OTHER NON ADMINISTRATIVE CAMPUS BASED PROFESSIONALS WHO DIRECTLY SERVE STUDENTS.

SO WE HAVE EMPLOYEES ON THE TEACHER PAY SCALE THAT AREN'T TEACHERS.

SO TEACHERS, NURSES, LIBRARIANS THERE ARE SOME OTHER CAMPUS BASED STAFF THAT ARE ON THE TEACHER PAY SCALE.

WE WANTED TO MAKE SURE THAT WE EXTENDED THAT SAME PERCENT INCREASE TO ALL OF OUR PROFESSIONAL STAFF ON OUR CAMPUSES THAT SERVE KIDS.

THE 3.2 THAT ALL OTHER STAFF WOULD RECEIVE A 3.25% OF SALARY RAISE.

IN THE PAST, WE HAVE TALKED ABOUT MIDPOINT RAISES.

WE'VE WE'VE ALMOST ALWAYS DONE MIDPOINT RAISES.

SO YOU HAVE A PAY SCALE.

EACH EMPLOYEE IS IN A SPECIFIC PAY GRADE.

THAT PAY GRADE HAS WHAT WE CALL A MIDPOINT, WHICH IS THE MARKET RATE FOR THAT POSITION.

AND THE RAISE WOULD BE CALCULATED OFF OF THAT MIDPOINT RATE.

SO EVERYBODY IN THAT PAY GROUP WOULD GET THE SAME DOLLAR AMOUNT INCREASE.

SO WHAT THAT DOES IS IT KIND OF KEEPS THE WHOLE GROUP KIND OF MOVING AS ONE AS YOU GIVE INCREASES.

[00:50:06]

WHAT IT DOESN'T DO NECESSARILY IS RECOGNIZE MORE TENURED STAFF BECAUSE THEY'RE NOT GETTING THE SAME PERCENTAGE AS SOMEBODY WHO IS LESS TENURED THAN THEY ARE. WHEN YOU DO IT BASED ON A DOLLAR AMOUNT, WHEN YOU DO IT BASED ON MIDPOINT.

SO THIS YEAR, IN ORDER TO ALLOW FOR A GREATER DOLLAR AMOUNT OR FOR A GREATER PROPORTION TO GO TO OUR MORE TENURED STAFF, WE'RE RECOMMENDING THAT THE RAISE BE BASED ON ACTUAL SALARY RATHER THAN MIDPOINT.

WHAT THAT DOES IS IT STRETCHES OUT OUR GRADES A LITTLE BIT.

IT DOESN'T KEEP THAT WHOLE COHORT TOGETHER MOVING UP THE PAY GRADE.

BUT IT DOES RECOGNIZE OUR MORE TENURED STAFF.

WE'RE ALSO RECOMMENDING SOME PRETTY SIGNIFICANT MINIMUM WAGE INCREASES.

LIKE I SAID, INFLATION IS IS HARD ON PEOPLE.

THE HOUSING MARKET IS HARD ON PEOPLE.

AND THOSE PEOPLE THAT KIND OF IN SOME OF OUR AUXILIARY AND PARAPROFESSIONAL POSITIONS ARE FEELING THAT A LOT.

AND SO WE TOOK A LOOK AT OUR MINIMUM WAGES AND WE HAVE RAISED OR ARE RECOMMENDING RAISING THE DISTRICT MINIMUM WAGE TO $14.50 AN HOUR. THAT RIPPLES THROUGH OUR PAY SCALES.

I'VE KIND OF GIVEN YOU A GRAPH OF THAT ON THE SCREEN.

SO MINIMUM WAGE INCREASES HAPPEN OR ANYWHERE FROM $0.85 AN HOUR TO $2.50 AN HOUR, DEPENDING ON WHICH PAY GRADE IT IS THAT'S BEING AFFECTED.

WE'RE ALSO RECOMMENDING PAY GRADE MARKET ADJUSTMENTS FOR PRINCIPAL PAY GRADES 501, 502 AND 503.

YOU GUYS HAVE COPIES OF OF THOSE PAY GRADES IN YOUR COMPENSATION PLAN.

EVERY YEAR WE TAKE A LOOK AT MARKET DATA FOR THE DISTRICTS IN THIS AREA THAT WE CAN BE WITH FOR STAFF SOME YEARS.

WE MAKE ADJUSTMENTS TO OUR PAY, OUR SALARY GUIDES FOR DIFFERENT POSITIONS BASED ON WHERE WE ARE IN COMPARISON TO MARKET.

SOME YEARS WE DON'T.

THIS YEAR, THE ONLY TWO ACTUAL SALARY GUIDES OUTSIDE OF THE MINIMUM WAGE THAT WE'RE MAKING RECOMMENDATIONS TO CHANGE ARE THOSE PRINCIPAL PAY GRADES, AND WE WILL MAKE SURE THAT ANY EXISTING PRINCIPAL IN THOSE PAY GRADES IS ADJUSTED AS NECESSARY TO MAKE SURE THAT THEY'RE NOT FALLING BELOW WHERE THAT PAY GRADE IS BEING SET.

WE'RE ALSO RECOMMENDING USING SOME OF OUR ESSER MONEY AVAILABLE TO US TO PROVIDE SOME STIPENDS FOR HARD TO STAFF POSITIONS.

SO BUS DRIVERS AND CAFETERIA WORKERS, I THINK WE ALL KNOW AND RECOGNIZE THAT THOSE HAVE BEEN THE ABSOLUTE HARDEST TO FILL ALL YEAR.

WE'VE BEEN ABLE TO DO SOME THINGS LIKE SOME ATTENDANCE BONUSES AND THINGS LIKE THAT THROUGH ESSER TO KEEP PEOPLE IN THOSE POSITIONS DURING THE SCHOOL YEAR.

SO ONE OF THE THINGS THAT WE'RE RECOMMENDING FOR NEXT SCHOOL YEAR WOULD BE AGAIN ONE TIME BECAUSE IT'S ESSER MONEY IN THAT MONEY EXPIRES, BUT BASICALLY IT'S A $1,000 STIPEND FOR THOSE HARD TO STAFF POSITIONS, WHETHER THEY ARE EXISTING EMPLOYEES AND RETURNING TO FRISCO ISD OR WHETHER THERE ARE NEW EMPLOYEES COMING INTO FRISCO ISD.

AND THAT WOULD BE PAID OUT OVER THE YEAR, PROBABLY QUARTERLY TO HELP ENSURE PEOPLE STAY WITH US THROUGHOUT THE YEAR.

AND AGAIN, IT'S FOR BUS DRIVERS, CAFETERIA WORKERS AND THEN SOME OF OUR CAMPUS BASED SPECIAL EDUCATION POSITIONS.

AND THAT WOULD ALL BE DONE WITH GRANT FUNDS.

THIS SLIDE SHOWS YOU THE AVERAGE PAY INCREASES BY EMPLOYEE TYPE AND ALSO THE TEACHER PAY SCALE VERSUS AVERAGE EXPECTED AVERAGE SALARIES FOR NEXT YEAR.

SO LET'S START WITH THE GRAPH ON THE LEFT, THE TEACHER PAY SCALE.

SO THE RED LINE IS THE PROPOSED SALARY GUIDE.

SO REMEMBER, WE HAVE OUR SALARY GUIDES SPECIFICALLY FOR HIRING PEOPLE INTO THE DISTRICT THAT HAVEN'T BEEN HERE BEFORE.

THAT KIND OF GIVES US A WAY TO CALCULATE BASED ON YEARS OF EXPERIENCE OUTSIDE OF FRISCO ISD WHERE WE SHOULD PLACE THEIR SALARY.

IT DOES NOT IMPACT THOSE SALARY GUIDES DO NOT NECESSARILY IMPACT WHERE AN EXISTING EMPLOYEE WHERE THEIR COMPENSATION WOULD FALL IF THEY'VE BEEN WITH US FOR A NUMBER OF YEARS. AND SO THE YELLOW LINE SHOWS AVERAGE ACTUAL SALARY FOR NEXT YEAR FOR A TEACHER AFTER APPLYING THAT PROPOSED 4% RAISE.

AND THEN THE RED LINE IS OUR PROPOSED SALARY SCALE.

SO YOU CAN SEE WHAT I WAS TALKING ABOUT A MINUTE AGO, WHERE THE WAY THAT WE'RE RECOMMENDING RAISES BEING BASED ON ACTUAL SALARY REALLY DOES PROVIDE MORE OF AN INCREASE, A PROPORTIONATE MORE OF A PROPORTIONATE INCREASE TO OUR MORE TENURED STAFF.

SO YOU CAN SEE THAT THAT LINE KIND OF PULL APART ON THE HIGHER END OF THE PAY SCALE.

THE. CHART ON THE RIGHT SHOWS THE AVERAGE INCREASE.

AVERAGE PERCENT INCREASE BY EMPLOYEE TYPE.

[00:55:01]

AND THEN THE TOTAL COST OF THOSE RAISES AND MINIMUM WAGE ADJUSTMENTS FOR EACH EMPLOYEE TYPE.

I'M GOING TO PAUSE AND SEE IF YOU GUYS HAVE QUESTIONS ABOUT THE PROPOSED RAISES.

SO IS THIS THE.

HIGHEST TEACHER I KNOW.

THERE'S A LOT OF TOUGH THINGS RIGHT NOW.

INFLATION, THINGS JUST COST MORE.

BUT THAT I CAN REMEMBER, IT'S THE HIGHEST TEACHER RAISE WE'VE GIVEN THAT I COULD FIND HISTORY ON.

I BELIEVE IT IS THE HIGHEST TEACHER RAISE WE'VE GIVEN.

IT'S DEFINITELY THE HIGHEST ONE WE'VE GIVEN SINCE I'VE BEEN HERE.

YOU KNOW, AS FAR AS AS FAR BACK AS I COULD SEE, IT IS THE HIGHEST RAISE WE'VE GIVEN SINCE WE'VE BEEN HERE.

STEPHANIE, I THINK, HAS A QUESTION.

GO AHEAD. SORRY, I DIDN'T HEAR TODD'S QUESTION VERY WELL, BUT WHAT WAS THE RAISE WE GAVE TO TEACHERS LAST YEAR? OR WAS THERE ONE? YES, THERE WAS ONE.

AND LAST YEAR WE GAVE 3% AND WE DID 3% OF MIDPOINT.

SO THAT'S I WAS EXPLAINING EARLIER THAT WE HAVE THE MIDPOINT OF THE PAY GRADE, WHICH IS ESSENTIALLY THE MARKET RATE, AND WE DID THAT FOR ALL STAFF.

YES. YES.

IN FACT, LET ME FLIP TO THE NEXT SLIDE.

BECAUSE THERE ARE OTHER EMPLOYEE BENEFITS THAT WE OFFER.

AND I'LL START AT THE BOTTOM OF THE PAGE SINCE YOU MENTIONED STIPENDS.

SO WE HAVE BEEN FOR A NUMBER OF YEARS PROVIDING ANNUAL RETENTION INCENTIVES AND A $250 CLASSROOM TEACHING AND SUPPLY STIPEND.

WE WE SET ASIDE MONEY THE YEAR IN 2018 AFTER OUR TRE PASSED AND WHEN WE HAD A PRETTY SIGNIFICANT SURPLUS OF REVENUE.

AND SO WE SET ASIDE MONEY TO BE ABLE TO PAY SOME OF THOSE RETENTION INCENTIVES.

WE STILL HAVE ABOUT THREE AND A HALF YEARS WORTH OF MONEY AVAILABLE IN THOSE RESERVES TO BE ABLE TO PAY THOSE.

LAST YEAR WE ALSO WERE ABLE TO PAY A COVID.

WE CALLED IT A CARE STIPEND, BUT WE USE SOME ESSER MONEY TO PAY AN ADDITIONAL STIPEND TO ALL EMPLOYEES FROM COVID RELIEF MONEY.

THERE ARE OTHER EMPLOYEE BENEFITS, OBVIOUSLY, THAT WE OFFER OUTSIDE OF JUST SALARIES.

MANY OF THEM ARE LISTED ON THE SCREEN.

WE DO PROPOSE CONTINUING TO PROVIDE $350 A MONTH FOR HEALTH INSURANCE PREMIUMS. THAT HAS BEEN UNCHANGED SINCE 2020.

THE THE COMPENSATION PLAN THAT YOU HAVE IN YOUR FOLDER LISTS OUT THE PROPOSED TRS OR NOT, THE PROPOSED THE ACTUAL TRS ACTIVE CARE PREMIUM RATES FOR EMPLOYEES FOR NEXT YEAR.

AND SO ALL OF THOSE RATES HAVE EITHER STAYED THE SAME OR GONE DOWN JUST SLIGHTLY FROM THIS CURRENT YEAR.

UNFORTUNATELY, WE ARE NO LONGER ABLE TO OFFER THE TEXAS SCHOOL HEALTH BENEFITS PROGRAM, WHICH WE'VE BEEN OFFERING FOR THE LAST TWO YEARS.

AND IT DID PROVIDE A FREE OPTION FOR EMPLOYEE ONLY COVERAGE FOR EMPLOYEES WHO ELECTED THE HIGH DEDUCTIBLE PLAN THROUGH THAT HEALTH PROGRAM. THE STATE IN THE LAST LEGISLATIVE SESSION PASSED LEGISLATION THAT DID NOT ALLOW SCHOOL DISTRICTS TO OFFER ALTERNATIVE PLANS THAT COMPETE WITH TRS ACTIVE CARE.

AND SO WE HAD TO CHOOSE TO EITHER STAY WITH TRS ACTIVE CARE OR TO LEAVE AND EXPLORE SOMETHING ON OUR OWN.

WE DID NOT HAVE ENOUGH INFORMATION ABOUT CLAIMS, DATA AND THAT KIND OF THING TO MAKE AN EFFECTIVE RECOMMENDATION ABOUT MOVING OUT ON OUR OWN PRIOR TO DECEMBER 31ST, WHICH WAS WHEN OUR DEADLINE WAS TO MAKE THAT CHOICE.

WE ARE STILL LOOKING AT THE POSSIBILITY OF.

CREATING OUR OWN HEALTH PLAN AND LEAVING TRS AT SOME POINT IN THE FUTURE.

AND SO WE'LL BE PUTTING OUT A REQUEST FOR PROPOSALS SOMETIME LATER THIS YEAR TO SEE ABOUT THE VIABILITY OF CREATING OUR OWN HEALTH PLAN OUTSIDE OF TRS ACTIVE CARE.

IF I REMEMBER CORRECTLY, IF WE LEAVE TREES, WE HAVE TO WAIT FIVE YEARS TO GO BACK IN.

IS THAT CORRECT? THAT'S CORRECT.

IF WE LEAVE TRS, WE HAVE TO WE HAVE TO STAY OUT FOR FIVE YEARS.

YES. SORRY.

WOULD YOU SAY THOSE HEALTH BENEFITS ARE BETTER NOW THAN THEY WERE BEFORE WE CHANGED.

THE TRS ACTIVE CARE HEALTH BENEFITS.

SO TRS ACTIVE CARE HAS HAS BEEN THE STATE'S HEALTH PLAN FOR A LONG TIME.

THOSE PLANS REALLY REMAIN UNCHANGED IN TERMS OF THE OFFERING THAT THEY HAVE.

THE TEXAS SCHOOL HEALTH BENEFITS PROGRAM WAS IT WAS KIND OF A DIFFERENT SORT OF HEALTH PLAN.

IT WAS WHAT WE CALL A CONCIERGE PLAN.

[01:00:03]

THERE WERE PROBABLY A LITTLE BIT MORE CONFUSING FOR PEOPLE, BUT IT WAS A MUCH LOWER COST.

SO IF YOU NEEDED TO HAVE A PROCEDURE DONE OR IF YOU NEEDED TO HAVE SOMETHING SPECIAL, YOU WOULD CALL A HEALTH CONCIERGE AND THEY WOULD NEGOTIATE ESSENTIALLY A CASH PAY RATE ON YOUR BEHALF. AND THAT'S WHAT THAT'S WHAT KEPT THE PROGRAM COST LOW.

SO FOR SOME EMPLOYEES, THAT WAS A MUCH MORE BENEFICIAL PROGRAM BECAUSE THEY MAYBE DIDN'T NEED SPECIALTY CARE OR THEY DIDN'T GO TO THE DOCTOR AS MUCH.

AND SO THEY COULD GET FREE HEALTH CARE COVERAGE REALLY WHEN THEY DIDN'T NEED ANYTHING DIFFERENT.

SOME OF OUR EMPLOYEES ELECTED TO STAY WITH TRS ACTIVE CARE BECAUSE IT'S MORE OF A TRADITIONAL HEALTH PLAN THAT PEOPLE ARE USED TO.

SO THAT CONCIERGE PLAN HAS GONE AWAY AND PEOPLE ARE PEOPLE WHO HAVE ALWAYS BEEN WITH TRS ACTIVE CARE ARE NOW GOING TO HAVE TO GO BACK TO ACTIVE CARE.

THE COST FOR AN EMPLOYEE WHO WAS ON THE FREE PLAN TO MOVE BACK INTO TRS ACTIVE CARE IS GOING TO BE BETWEEN 60 AND $70 A MONTH FOR AN EMPLOYEE ONLY PLAN.

SO THE FREE PLAN UNDER TSHBP WAS FOR EMPLOYEES ONLY.

SO IS THE HIGH DEDUCTIBLE PLAN FOR EMPLOYEE ONLY COVERAGE, AND THAT WAS WHAT WAS FREE.

SO IT'LL BE BETWEEN 60 AND $70 A MONTH TO MOVE BACK INTO A SIMILAR PLAN WITH TRS ACTIVE CARE.

DID YOU HAVE A QUESTION? I DID.

DO WE HAVE ANYTHING IN RESERVE WITH THE ESSER FUNDS THAT COULD CONTRIBUTE TO INCREASING THIS PRELIMINARY AMOUNT? THE 350 PER MONTH, YOU MEAN? NO, I'M REFERRING TO THE SALARY.

OH. LET ME GET TO THE PROPOSED BUDGET IN A MINUTE AND THAT WILL ANSWER YOUR QUESTION.

OH, THAT'S A GOOD POINT. SO, STEPHANIE, IF YOU COULDN'T HEAR DR.

WALDRIP ASKED ME TO TALK ABOUT WHERE OUR $350 PER MONTH RANKS IN TERMS OF PEER DISTRICTS.

SO WE ARE IN THE TOP.

I DON'T KNOW IF THERE'S ANY DISTRICT IN THIS AREA THAT PAYS MORE THAN $350 PER MONTH.

THERE ARE A FEW THAT DO PAY 350, BUT WE'RE DEFINITELY AT THE TOP OF OUR OF OUR PAY MARKET WHEN IT COMES TO THE AMOUNT THAT WE CONTRIBUTE TO HEALTH CARE PREMIUMS. AND IF YOU'VE ALREADY SAID THIS AND I DIDN'T HEAR IT, JUST TELL ME YOU'VE ALREADY SAID IT.

THE CONVERSATION WE HAD MONTHS AGO ABOUT THE HEALTH PLAN AND HOW THE DECISION TO GET OUT, LIKE RENE SAID, WAS A FIVE YEAR DECISION.

BUT THE DEADLINE TO MAKE THAT DECISION WAS BEFORE WE WOULD HAVE INFORMATION THAT WOULD ALLOW US TO DECIDE WHICH WOULD HAVE BEEN MORE BENEFICIAL.

SO IT WOULD HAVE BEEN A TOSS UP TO HAVE DONE IT THIS YEAR.

YES. SO AGAIN, THE QUESTION WAS ABOUT THE TIMING FOR DECIDING TO LEAVE TO US ACTIVE CARE.

WE RECEIVED CLAIMS DATA FROM TRS IN LATE OCTOBER.

EARLY NOVEMBER, IF I'M REMEMBERING MY TIMELINE EXACTLY.

WE HAD TO MAKE A DECISION TO STAY OR LEAVE BY DECEMBER 31ST.

SO IN ORDER TO DO A TRULY.

YOU KNOW, DO ALL OF OUR DUE DILIGENCE DO A TRULY ROBUST REQUEST FOR PROPOSALS FOR ALTERNATIVE HEALTH PLANS, KNOWING THAT WE WOULD HAVE TO LEAVE TRS FOR FIVE YEARS. IT WAS THERE WAS PROBABLY JUST A LITTLE BIT TOO MUCH RISK FOR US AT THAT TIME TO FEEL COMFORTABLE KNOWING THAT WE COULD DEFINITELY PROVIDE OUR EMPLOYEES WITH A QUALITY HEALTH PLAN AT THE SAME OR LOWER COST.

AND SO WE HAVE TIME THIS YEAR.

WE CAN GET OUR CLAIMS DATA.

WE CAN REQUEST THAT CLAIMS DATA AGAIN, SINCE WHAT WE HAVE IS OUT OF DATE NOW, WE CAN PUT OUT AN RFP AND WE CAN REALLY DO OUR DUE DILIGENCE AND ANALYZE WHETHER IT'S EVEN FINANCIALLY FEASIBLE FOR US TO LEAVE TRS AND GO OUT ON OUR OWN.

IT MAY NOT BE, BUT WE ARE COMMITTED TO EXPLORING IT.

WELL. AND I THINK, TOO, IT'S IMPORTANT TO MENTION THAT WITH THE ADDITION OF THE EMPLOYEE CLINIC, THAT THAT WILL HELP US TO MAKE THESE DECISIONS GOING FORWARD AS WELL.

WE DIDN'T HAVE WE DIDN'T HAVE ANY INFORMATION ON HOW THE UTILIZATION RATE OF THAT CLINIC AND WHAT THAT WOULD LOOK LIKE.

SO I THINK THAT'S A REALLY IMPORTANT PIECE BEFORE WE MAKE THAT DECISION, ESPECIALLY THE FACT THAT IT'S A FIVE YEAR DECISION.

ABSOLUTELY. ONE OF THE REASONS THAT WE PUT THE EMPLOYEE HEALTH CLINIC INTO PLACE WAS TO BE ABLE TO OFFER OUR EMPLOYEES A FREE OPTION TO GET TREATED WITH, REGARDLESS OF WHETHER THEY HAVE THE DISTRICT'S INSURANCE, WHETHER THEY HAVE THEIR SPOUSES INSURANCE OR SOMEONE ELSE'S INSURANCE.

WE WANTED TO PROVIDE THEM WITH A FREE OPTION FOR ESSENTIALLY URGENT CARE.

AND SO THAT WILL OPEN SOMETIME THIS SUMMER.

AND THAT WILL BE A PLACE THAT OUR EMPLOYEE, ALL EMPLOYEES CAN GO AND GET FREE, ESSENTIALLY URGENT CARE.

STEPHANIE HAD A QUESTION.

YEAH, I ACTUALLY HAVE TWO QUESTIONS.

[01:05:01]

THE FIRST IS--SORRY, ARE YOU READY FOR ME? YEAH, GO AHEAD. OKAY, I'M HEARING SOME FEEDBACK.

IT MIGHT BE ON MY END. MY FIRST QUESTION WAS, HOW MUCH IS THE MONTHLY WELLNESS REIMBURSEMENT AND WHAT PERCENTAGE OF OUR EMPLOYEES ARE TAKING ADVANTAGE OF THAT? I DO NOT HAVE OFF THE TOP OF MY HEAD THE PERCENTAGE OF EMPLOYEES THAT TAKE ADVANTAGE OF IT.

I BELIEVE IT'S $25 A MONTH.

ESSENTIALLY, THAT COVERS THE COST OF A GYM MEMBERSHIP.

THERE ARE ALL KINDS OF THINGS THAT YOU CAN REQUEST REIMBURSEMENT FOR.

SO IF YOU HAVE A PELOTON SUBSCRIPTION, YOU CAN TURN IN THAT.

YOU JUST HAVE TO HAVE USED IT AT LEAST TEN TIMES IN THAT MONTH AND THEN YOU CAN GET REIMBURSED.

I CAN GET YOU THE FACTS FOR HOW MANY EMPLOYEES USE IT.

I DON'T HAVE THAT OFF THE TOP OF MY HEAD.

OKAY, THAT WOULD BE GREAT, AND THEN MY SECOND QUESTION WAS REGARDING THE ANNUAL RETENTION INCENTIVES.

I BELIEVE THE ONE THAT WE PAID THIS YEAR EARLIER IN THE CALENDAR YEAR WAS FUNDED.

CORRECT ME IF I'M WRONG, BUT I THOUGHT IT WAS FUNDED BY THE ESSER FUNDS.

SO HOW WOULD WE FUND THAT NEXT YEAR AND HOW WOULD THAT BE ALLOCATED FOR IN TERMS OF THE BUDGET? THAT'S A GOOD QUESTION. A PORTION OF THAT WAS FUNDED BY ESSER MONEY THIS YEAR.

WE BEEFED IT UP A LITTLE BIT BECAUSE WE HAD SOME ESSER MONEY AVAILABLE.

WE HAVE FUND BALANCE SET ASIDE AND EARMARKED FOR ANNUAL RETENTION INCENTIVES.

SO LIKE I SAID, WE HAVE ENOUGH MONEY SET ASIDE IN RESERVES TO PAY FOR ABOUT ANOTHER THREE AND A HALF YEARS IF WE CONTINUE TO PAY IT THE WAY WE WERE PAYING IT BEFORE THIS YEAR, WE MADE IT A LITTLE BIT MORE ROBUST THIS PAST YEAR BECAUSE WE HAD SOME ESSER MONEY THAT WE COULD USE TO HELP INCREASE THE AMOUNT THAT WE WERE PAYING.

SO WE DO HAVE MONEY SET ASIDE TO PAY THREE MORE.

I AM GOING TO RECOMMEND THAT ANY SURPLUS THAT WE GENERATE THIS YEAR GO INTO THAT ASSIGNMENT FOR FUTURE RETENTION INCENTIVES SO THAT WE CAN LENGTHEN THE AMOUNT OF TIME THAT WE HAVE AVAILABLE TO US TO PAY THOSE RETENTION INCENTIVES, BECAUSE I DO THINK IT'S SOMETHING THAT OTHER DISTRICTS DON'T NECESSARILY DO, AND IT IS A BENEFIT TO OUR EMPLOYEES TO BE ABLE TO ONCE THEY'VE BEEN WITH FRISCO ISD FOR A YEAR, THEY'RE ELIGIBLE FOR THAT RETENTION INCENTIVE IN JANUARY.

GO AHEAD. ONE LAST QUESTION.

I'M GOING BACK TO SALARY.

DO YOU HAVE A ROUGH ESTIMATE ON OF THE DIFFERENCE BETWEEN OUR NEIGHBORING DISTRICTS AND THE INCREASE THAT THEY HAVE COMPARED TO OURS? I DON'T HAVE ALL OF THEM.

I CAN TELL YOU THAT MANY OF OUR NEIGHBORING DISTRICTS ARE DOING FOUR PERCENT.

A LOT OF DISTRICTS IN THE METROPLEX HAVE GONE UP TO 60,000 FOR STARTING TEACHER PAY.

IT VARIES FROM DISTRICT TO DISTRICT AND ESSENTIALLY JUST HOW MUCH MONEY THEY HAVE AVAILABLE TO DO THOSE THINGS.

SO IT VARIES PRETTY SIGNIFICANTLY.

I MEAN, I'VE READ NEWS ARTICLES ABOUT DISTRICTS IN OTHER PARTS OF THE STATE THAT ARE GIVING AN 11% OR 12% RAISE.

WHAT THE NEWS ARTICLES DON'T COVER IS WHAT THE STARTING SALARY WAS TO WHAT YOU'RE ADDING 11 OR 12% TO.

SO WE'VE BEEN VERY COMPETITIVE, AS I SHOWED YOU IN THAT GRAPH BEFORE.

I BELIEVE THAT THE 58000 TO 50 THAT WE'RE PROPOSING WILL KEEP US COMPETITIVE.

IT'S OBVIOUSLY SOMETHING THAT WE'RE GOING TO HAVE TO WATCH AND THAT OUR HR DEPARTMENT IS WATCHING CONSTANTLY.

SO IT REMAINS TO BE SEEN, BUT LIKE I SAID.

IF US OR ANY OTHER DISTRICT IS USING ONE TIME MONEY TO HELP PAY FOR SOME OF THESE THINGS, THAT MONEY EXPIRES EVENTUALLY AND THE SALARY INCREASES ARE FOREVER.

SO WE HAVE TO MAKE SURE THAT ANY DECISION THAT WE MAKE CAN BE SUSTAINED GOING FORWARD, AND SO THAT IS SOMETHING THAT WE DID TAKE INTO CONSIDERATION, ESPECIALLY WITH US OPENING FOR CAMPUSES IN THE NEXT TWO YEARS.

SO IS THIS A GOOD TIME TO ASK ABOUT HOW THE LEGISLATURE MIGHT PLAY INTO THAT NEXT YEAR? OR DO YOU WANT TO WAIT UNTIL--NO, YOU CAN ASK.

BECAUSE WE'VE TALKED ABOUT THAT, TOO.

SO WITH DISTRICTS THAT ARE UTILIZING ONE TIME MONEY TO TO GIVE LARGER INCREASES THIS YEAR, IN ESSENCE, THERE'S A GAMBLE THERE THAT THERE'S GOING TO BE HELP ON THE WAY PERHAPS AT SOME POINT AND TO THE EXTENT THAT WE GET THAT, TOO, WE CAN ALWAYS COME BACK AND MAKE ADJUSTMENTS LATER.

RIGHT. SO WHEN THE STATE LEGISLATURE IS CONCERNED AND YOU'LL SEE IN A MINUTE THAT WE ARE TAKING A SIMILAR GAMBLE TO WHAT SOME OF OUR NEIGHBORING DISTRICTS ARE DOING. WHEN IT COMES TO THE STATE LEGISLATURE, ASSUMING THAT THEY DO APPROPRIATE MORE MONEY TOWARDS PUBLIC EDUCATION, IT REMAINS TO BE SEEN IF THEY WILL DICTATE HOW THAT MONEY NEEDS TO BE SPENT.

IN HB 3, WHEN THAT LAW WAS PASSED, THERE WAS A CERTAIN PORTION OF IT THAT HAD TO GO TOWARDS SPECIFICALLY TEACHER PAY INCREASES.

WE CHOSE TO SUPPLEMENT OUR OWN ADDITIONAL FUNDS TO GO TOWARDS ALL STAFF INCREASES AND NOT JUST TEACHERS.

[01:10:08]

I THINK, YOU KNOW, TAKING THE GAMBLE BY INCREASING COMPENSATION, ASSUMING THAT THE STATE COMES IN AND SAYS YOU HAVE TO PUT THIS MONEY TOWARDS COMPENSATION, WELL, THEN THAT MAKES EVERYBODY WHOLE.

IF THERE ARE OTHER THINGS THAT THEY WANT US TO SPEND OUR MONEY ON THAT THEY EARMARKED FOR US, WHEN THEY GIVE US ADDITIONAL FUNDS, THEN THE ADDITIONAL MONEY THAT WE'VE SPENT ON COMPENSATION IS GOING TO BE IS GOING TO HAVE TO BE SOMETHING WE FIGURE OUT HOW TO MAKE UP ON OUR OWN.

I ALSO THINK IT'S IMPORTANT TO NOTE THAT WHILE WE HAVE A LOT OF OUR NEIGHBORING DISTRICTS DATA WHEN IT COMES TO WHAT IS COMING, SOME OF OUR SOME NEIGHBORING DISTRICTS DO NOT PARTICIPATE IN RELEASING THAT DATA.

THEY DON'T PARTICIPATE IN THAT SALARY SURVEY.

SO WE'RE KIND OF FLYING BLIND A LITTLE BIT WHEN IT COMES TO A FULL COMPREHENSIVE BENCHMARKING BECAUSE WE JUST DON'T HAVE ACCESS TO IT.

WE REALLY DON'T GET A FULL COMPREHENSIVE BENCHMARKING UNTIL NOVEMBER, DECEMBER, JANUARY, HALFWAY THROUGH THE SCHOOL YEAR WHEN EVERYBODY REPORTS THEIR ACTUAL DATA , AND EVEN THEN, SOME DISTRICTS DON'T REPORT THEIR DATA.

THAT DATA COMES FROM TASB.

THEY'RE THE ONES THAT COLLECT THAT INFORMATION FOR US, AND SOME DISTRICTS DON'T REPORT.

SO WE CAN TALK TO OUR PEERS AND OTHER DISTRICTS.

WE CAN GET A FEEL FOR WHAT THEY'RE TRYING TO DO, BUT AT THE END OF THE DAY, WE DON'T ALL NECESSARILY WORK TOGETHER TO FIGURE OUT WHERE WE'RE ALL GOING TO DO THE SAME AMOUNT OF RAISE OR THE SAME STARTING SALARY FOR TEACHERS.

TO WHAT EXTENT, THOUGH, IS THAT PUBLIC INFORMATION THAT WE COULD JUST REQUEST A PIR FROM THOSE DISTRICTS? WE CAN WHEN IT'S ADOPTED, BUT WHEN IT COMES TO WHAT ARE THEIR PLANS FOR NEXT YEAR, THERE'S NO RESPONSIVE DOCUMENT IN A PIR.

I DO WANT TO POINT OUT A COUPLE OF OTHER BENEFITS THAT WE HAVE THAT I THINK ARE PRETTY UNIQUE TO FRISCO THAT ARE REALLY GOOD BENEFITS FOR OUR EMPLOYEES, AND AGAIN, WE DON'T TALK ABOUT THEM A LOT.

WE MATCH VOLUNTARY RETIREMENT CONTRIBUTIONS.

SO OUR EMPLOYEES HAVE ACCESS TO A 403 B OR 457 PLAN SIMILAR TO A 401K IN THE BUSINESS WORLD AND IF THEY MAKE THOSE VOLUNTARY RETIREMENT CONTRIBUTIONS, THEN WE WILL MATCH $0.25 OF EVERY DOLLAR UP TO 1% OF THEIR SALARY.

VERY FEW SCHOOL DISTRICTS IN THE STATE OFFER MATCHING RETIREMENT CONTRIBUTIONS.

WE TALKED ABOUT THE MONTHLY WELLNESS REIMBURSEMENT.

WE OFFER FREE FINANCIAL PLANNING SERVICES TO EMPLOYEES, WHICH IS A HUGE BENEFIT THAT WE STARTED OFFERING A ABOUT A YEAR OR A YEAR AND A HALF AGO. WE PAY FOR FOR EVERY EMPLOYEE TO HAVE ACCESS TO A PLATFORM CALLED FINPATH, AND THAT IS THROUGH TCG, WHO IS OUR ADMINISTRATOR OF THOSE VOLUNTARY RETIREMENT PLANS.

THEY WILL COME AND DO WORKSHOPS FOR EMPLOYEES.

THEY'LL MEET ONE ON ONE WITH EMPLOYEES TO TALK ABOUT NOT JUST RETIREMENT PLANNING, BUT FINANCIAL PLANNING IN GENERAL.

THEY HAVE THAT PLATFORM THAT'S ONLINE, HELPS THEM WITH BUDGETING QUESTIONS AND IT'S A MONEY MANAGEMENT KIND OF THING THAT IS REALLY BENEFICIAL TO OUR EMPLOYEES, AND AGAIN, NOT A LOT OF SCHOOL DISTRICTS OFFER THAT KIND OF THING.

THE EMPLOYEE HEALTH CLINIC THAT'S OPENING IS SOMETHING THAT'S REALLY UNIQUE TO US.

I DON'T THINK WE TALK ABOUT THESE THINGS ENOUGH.

WE REALLY HAVE WORKED HARD OVER THE PAST SEVERAL YEARS TO DO AS MUCH FOR OUR EMPLOYEES AS WE CAN OUTSIDE OF JUST SALARY INCREASES.

SO I WANTED TO MAKE SURE I HIGHLIGHTED THOSE.

ALL RIGHT, MOVING ON, UNLESS THERE ARE OTHER QUESTIONS ON COMPENSATION.

ALL RIGHT, LET'S DIVE INTO THE GENERAL FUND BUDGET.

OKAY, SO WHAT I'VE PUT ON THIS SLIDE FOR YOU AND I'M SORRY THE PRINT IS A LITTLE HARD TO READ.

THIS IS THE FISCAL YEAR 2022 BUDGET THAT YOU GUYS ADOPTED LAST SUMMER, THE PROPOSED BUDGET FOR THIS COMING YEAR, AND THEN THE CHANGE YEAR OVER YEAR. THIS IS PROJECTED REVENUE.

I PUT THIS INTO A LITTLE BIT OF A DIFFERENT ORDER THAN YOU GUYS ARE PROBABLY USED TO SEEING AND SOME OF THE FINANCIAL PLANS THAT I DO.

I'VE KIND OF GROUPED FORMULA REVENUE, NET OF RECAPTURE AND THEN NON-FORMULA TAX REVENUE, OTHER LOCAL REVENUE AND FEDERAL REVENUE.

THOSE FOUR PIECES TOGETHER MAKE UP REVENUE THAT WE CAN APPROPRIATE FOR OUR EXPENDITURES AND THEN WE HAVE FLOW THROUGH PIECES WHICH ARE IS OUR TIF REVENUE AND OUR TRS ON BEHALF, AND THAT'S THE TRS ON BEHALF IS CONTRIBUTIONS TO THE TRS RETIREMENT PLAN THAT THE STATE MAKES ON BEHALF OF THE SCHOOL DISTRICT FOR OUR EMPLOYEES. SO THAT REVENUE COMES IN AND GOES RIGHT BACK OUT.

SO WE CAN'T REALLY USE THAT TO DETERMINE HOW MUCH MONEY WE CAN APPROPRIATE IN NEXT YEAR'S BUDGET.

THAT TOP PIECE IS THE PIECE THAT WE CAN USE TO DETERMINE HOW MUCH MONEY WE CAN APPROPRIATE, AND FORMULA REVENUE IS THE BIGGEST PIECE.

SO FORMULA REVENUE IS LOCAL PROPERTY TAXES, PLUS STATE AID, AND THAT IS THE

[01:15:10]

REVENUE THAT DRIVES OUR GENERAL FUND BUDGET.

YOU CAN SEE IT'S PROJECTED TO INCREASE BY ABOUT $10.8 MILLION NEXT YEAR.

SINCE PROPERTY VALUES ARE OUTPACING ENROLLMENT GROWTH, THAT REVENUE IS BEING GENERATED IN PROPERTY TAXES RATHER THAN STATE AID.

SO IT DOESN'T MATTER. IT'S GOING TO COME FROM ONE PART OR THE OTHER BECAUSE IT'S BASED ON ENROLLMENT, BUT WHEN YOU ACTUALLY LOOK YEAR OVER YEAR AT OUR BUDGET, YOU'RE GOING TO SEE THE INCREASE IN PROPERTY VALUES OR IN PROPERTY TAX REVENUE BECAUSE OUR PROPERTY VALUES ARE OUTPACING OUR ENROLLMENT GROWTH, IF THAT MAKES SENSE.

IT'S EASIER TO JUST THINK OF IT ALL TOGETHER AS FORMULA REVENUE, THOUGH, BECAUSE IT ALL FLOWS THROUGH THE SAME FORMULA.

THERE'S JUST A STATE PORTION AND A LOCAL PORTION.

WE DON'T RETAIN ANY OF THE TIF REVENUE, THOUGH.

WE DON'T RETAIN ANY OF THE TIF REVENUE IN OUR GENERAL FUND.

SO SOME OF IT DOES COME BACK TO US IN OUR DEBT SERVICE FUND AND I'LL TALK ABOUT THAT WHEN I GET TO THAT BUDGET, AND WE DO HAVE SOME NON FORMULA TAX REVENUE, SO THAT'S PENALTIES ON INTEREST FOR WHEN PEOPLE DON'T PAY THEIR TAXES ON TIME, THAT KIND OF THING, AND THEN WE HAVE OUR LOCAL REVENUE, WHICH IS INCOME ON INVESTMENTS. IT'S REVENUE THAT WE GET FROM RENTING FACILITIES, IT'S ATHLETIC RECEIPTS, IT'S ALL KINDS OF THINGS, AND THEN WE DO GET SOME FEDERAL REVENUE FROM THE FEDERAL MEDICAID AND SHARS PROGRAMS. SO STUDENTS THAT ARE MEDICAID ELIGIBLE, THAT WE SERVE WERE ABLE TO BUILD MEDICAID FOR THOSE SERVICES AND WE COLLECT FEDERAL REVENUE FOR THAT.

SO YOU CAN SEE TOTAL REVENUE AVAILABLE FOR APPROPRIATION THAT WE HAVE WHEN YOU EXCLUDE THE FLOW THROUGH IS JUST UNDER $600M: $597M. SO HERE ARE OUR RECOMMENDATIONS FOR NEW APPROPRIATIONS.

SOME OF THESE YOU GUYS SAW AT YOUR FEBRUARY BUDGET WORKSHOP AND ARE ALREADY INCLUDED IN THAT RESOLUTION THAT YOU APPROVED IN FEBRUARY FOR NEW STAFF TO BE ADDED TO THE BUDGET. SO I PUT A LITTLE STICKER ON THE ONES THAT YOU'VE ALREADY SEEN.

I WILL SAY THAT THE TOTAL DOLLAR AMOUNT OF SOME OF THESE HAS CHANGED JUST SLIGHTLY AS WE'VE GONE THROUGH AND LOOKED AT THE PAY SCALES AND THAT KIND OF THING AND REFINED THE COST OF THE WHAT I CALL FRINGE, WHICH SO IT'S, YOU KNOW, WORKER'S COMP, MEDICAID, THOSE PAYROLL TAXES, TRS CONTRIBUTIONS, THAT KIND OF THING WE WENT THROUGH AND JUST DOUBLE CHECKED AND REFINED ALL OF THOSE AS WE BUILT THIS BUDGET.

SO THOSE HAVE CHANGED JUST SLIGHTLY, NOT SIGNIFICANTLY IN TERMS OF TOTAL DOLLARS, AND NONE OF THE ACTUAL NUMBER OF STAFF HAVE CHANGED.

SO WE HAVE STAFF FOR MINETT, STAFF FOR PANTHER CREEK, AND THEN STAFF TO ADD IN 11TH GRADE AT EMERSON, AND SO YOU GUYS SAW ALL OF THOSE IN FEBRUARY. WE'RE ALSO RECOMMENDING ADDING STAFF FOR THE CAMPUSES OPENING IN THE 2023-2024 SCHOOL YEAR.

SO A PRINCIPAL AND A SECRETARY FOR WILKINSON MIDDLE SCHOOL AND A SECRETARY FOR THEM, WE APPROPRIATED THE PRINCIPAL FOR THEM IN A BUDGET AMENDMENT EARLIER THIS YEAR.

SO WE TYPICALLY ALLOCATE THOSE POSITIONS EARLY SO THAT THEY CAN BE HIRED DURING THE YEAR AND THEY CAN GET THOSE CAMPUSES READY TO HIRE STAFF AND OPEN AND THAT KIND OF THING.

WE'RE ALSO RECOMMENDING AN ADDITIONAL $1.1 MILLION OF JUST GENERAL OPERATING COSTS FOR THESE NEW CAMPUSES.

THAT'S MADE UP OF INCREASES IN CENTRAL DEPARTMENT BUDGETS, BUT THAT ARE DIRECTLY RELATED TO OPERATING THOSE NEW CAMPUSES.

SO THE CUSTODIAL DEPARTMENT BUDGET, FOR EXAMPLE, TO PROVIDE ADDITIONAL CLEANING SUPPLIES AND THAT KIND OF THING FOR THOSE TWO CAMPUSES, THE MAINTENANCE BUDGET FOR UTILITIES, ELECTRICITY, JUST SERVICES THAT HAPPEN FOR THOSE CAMPUSES, THE ATHLETICS BUDGET, AND THEN THE STUDENT SERVICES BUDGET FOR SOME OF THOSE PROGRAMS THAT HAPPEN ON THOSE CAMPUSES.

THE FINE ARTS BUDGET NORMALLY WOULD HAVE AN INCREASE ALSO BECAUSE THE FINE ARTS PROGRAMS WILL BE STARTING UP AT THOSE SCHOOLS.

FINE ARTS WAS ABLE TO LOOK AT THE WAY THAT THEY'VE ALLOCATED FUNDS AND THROUGH SOME KIND OF REARRANGEMENT OF MONEY THAT HAS BEEN EARMARKED IN THE PAST FOR STUDENT TRAVEL, THEY'VE BEEN ABLE TO ABSORB THE COST OF OPENING PANTHER CREEK.

I HAVE A QUESTION FOR YOU.

YES.

I NOTICED THAT CUSTODIANS ARE IN FOR PANTHER CREEK, BUT NOT FOR THE OTHER CAMPUSES.

IS THAT IN THERE SOME WAY? IT IS, WE JUST DON'T NEED ADDITIONAL ONES.

SO THEY WILL HAVE CUSTODIANS.

WE JUST DIDN'T NEED TO ADD ADDITIONAL ONES FOR THAT CAMPUS.

SO YOU'LL NOTICE SOME YEARS WHEN WE OPEN SCHOOLS WILL HAVE A BIG FINE ARTS BUDGET INCREASE

[01:20:04]

AND SOME YEARS, WILL HAVE A BIG ATHLETICS BUDGET INCREASE.

THEY TEND TO KIND OF TRADE OFF.

BOTH OF THOSE DEPARTMENTS DO A REALLY GREAT JOB LOOKING AT THEIR SPENDING AND HOW THEY ALLOCATE MONEY TO ALL THE CAMPUSES EVERY YEAR, AND THEY ABSORB EVERYTHING THAT THEY POSSIBLY CAN. SO IT WAS GREAT FOR OUR BOTTOM LINE THIS YEAR THAT FINE ARTS WAS ABLE TO ABSORB ATHLETICS, ACTUALLY ABSORBED THE OPENING OF EMERSON WITHIN THEIR BUDGET.

SO AND THEN ALSO $181,000 FOR THE PER PUPIL ALLOTMENTS, THOSE CAMPUS BUDGETS FOR THOSE TWO NEW SCHOOLS.

SO YOU CAN SEE THE TOTAL COST TO OPEN NEW CAMPUSES WE'RE PROPOSING IS JUST OVER $13.1 MILLION.

SORRY, IS THAT INCLUSIVE OF THE THOUSAND DOLLAR STIPEND OR INCREASE FOR THOSE SPECIALTY POSITIONS? NO, THE $1,000 STIPEND IS PAID FROM FEDERAL MONEY.

SO THIS IS GENERAL FUND ONLY.

OKAY, THANKS. OKAY, SO TOTAL COST OF EMPLOYEE RAISES.

THE 4% OF SALARY FOR OUR TEACHERS AND OUR NON ADMINISTRATIVE CAMPUS BASED PROFESSIONALS, AND A QUARTER PERCENT OF SALARY FOR ALL OF THEIR EMPLOYEES IS COSTING US JUST OVER $15 MILLION.

THE MINIMUM WAGE INCREASES THAT I TALKED ABOUT WILL COST 3.4 MILLION.

WE HAVE A HANDFUL OF MARKET ADJUSTMENTS AND RESTRUCTURES THAT HAPPEN EVERY YEAR.

SO, MARKET ADJUSTMENTS WE TALKED ABOUT, LIKE WITH THE PRINCIPAL POSITIONS THAT WE'RE ADJUSTING THOSE PAY GRADES, EVERY NOW AND THEN WE WILL LOOK AT A GROUP OF EMPLOYEES THAT MAY HAVE FALLEN OUT OF LINE WITH MARKET AND WE MAY NEED TO MAKE SLIGHT ADJUSTMENTS IF WE ADJUST THE PAY GRADE, THAT KIND OF THING , AND THEN RESTRUCTURE IS ONE OF THE THINGS THAT WE WORK REALLY HARD TO DO BEFORE WE ADD NEW POSITIONS.

IF WE HAVE ADDITIONAL NEEDS THAT COME UP, WE LOOK AT IS THERE A WAY TO RESTRUCTURE AN EXISTING DEPARTMENT TO FULFILL THAT NEED? OR IF WE HAVE EMPLOYEES THAT ARE RETIRING OR LEAVING THE DISTRICT AND WE HAVE A ROLE TO FILL, WE WORK REALLY HARD TO LOOK AT IS THERE A WAY TO RESTRUCTURE THIS A LITTLE BIT, TO BE MORE EFFICIENT WITH OUR SPENDING AND ABSORB SOME OF THE ADDITIONAL NEEDS? AND SO EVERY NOW AND THEN THAT RESULTS IN A LITTLE BIT MORE MONEY FOR, MAYBE A SPECIFIC EMPLOYEE.

IT'S OFFSET BY MONEY THAT WE WOULD NOT BE SPENDING BECAUSE WE WOULDN'T BE FILLING A POSITION, IF THAT MAKES SENSE, AND THEN AN INCREASE IN FRINGE COSTS.

SO TRS, MEDICARE, WORKER'S COMP AND INSURANCE.

THE BULK OF THIS IS TRS.

OUR REQUIRED CONTRIBUTION RATE TO TRS IS GOING UP BY 0.1% OF PAYROLL, WHICH IS MILLIONS OF DOLLARS IN A DISTRICT OUR SIZE.

SO THAT POINT 0.1% IS THE BULK OF THAT $5.3 MILLION, PLUS THE FRINGE COST FOR NEW POSITIONS AND THE FRINGE COSTS FOR JUST ASSOCIATED WITH THE RAISES IN GENERAL.

SO TOTAL COST OF RAISES $24.6 MILLION.

THE NEXT ONE IS OTHER NEW STAFF.

SO REMEMBER I TALKED AT THE BEGINNING ABOUT HOW WE'RE NOT RECOMMENDING AS MANY NEW THINGS BEING ADDED TO THIS BUDGET AS WE HAVE IN THE PAST. WE DID NOT GO THROUGH AS ROBUST OF A REQUEST AND REVIEW PROCESS AS WE HAVE IN THE PAST, BECAUSE WE'RE REALLY LOOKING AT THAT STRATEGIC ABANDONMENT AND IDEA AND INITIATIVE WE'RE REALLY LOOKING AT BEFORE WE PUT NEW RESOURCES INTO SOMETHING.

WHAT DO WE CURRENTLY HAVE? HOW CAN WE MAKE THAT MORE EFFICIENT? AND WE'RE ONLY REALLY RECOMMENDING NEW THINGS THAT ARE NEEDED TO SUSTAIN OUR OPERATIONS AS THEY ARE.

SO IN OTHER WORDS, IF WE DIDN'T DO THESE THINGS, WE WOULD HAVE A PROBLEM, AND SO SPECIAL EDUCATION STAFF, YOU GUYS SAW THAT RECOMMENDATION IN FEBRUARY.

THESE STAFF ARE ALREADY INCLUDED IN THE RESOLUTION THAT YOU ADOPTED IN FEBRUARY TO BE INCLUDED IN THE BUDGET.

THOSE HAVE NOT CHANGED.

WE'RE RECOMMENDING ADDING TWO ADDITIONAL STAFF TO THE RAIL PROGRAM.

RAIL IS OUR ONLINE ASYNCHRONOUS PROGRAM FOR STUDENTS TO HELP THEM IN VARIOUS AVENUES.

WE'RE RECOMMENDING AN ACADEMIC ADVISOR AND A TEACHER FOR THAT PROGRAM TO REFLECT INCREASED PARTICIPATION.

WE'RE RECOMMENDING FOUR DYSLEXIA THERAPIST TO HELP SERVE THE GROWING STUDENT POPULATION RECEIVING DYSLEXIA SERVICES.

THE FOUR THERAPISTS ARE THE MINIMUM NUMBER THAT WE NEED IN ORDER TO ENSURE THAT ALL OF THOSE STUDENTS RECEIVE THE SERVICES.

RIGHT NOW, DYSLEXIA THERAPISTS SHARE CAMPUSES DEPENDING ON HOW MANY STUDENTS ARE AT ANY GIVEN CAMPUS THAT NEED SERVICES, AND SO THEY ALREADY SHARE CAMPUSES AND SO WE NEED TO ADD FOUR TO MAKE SURE THAT WE HAVE ENOUGH TO COVER ALL OF THE STUDENTS THAT NEED THOSE SERVICES, AND THEN ONE STAFF IN COMMUNICATIONS TO SUPPORT DISTRICT WIDE

[01:25:10]

INTERNAL COMMUNICATIONS.

WE DON'T ACTUALLY CURRENTLY HAVE A STAFF MEMBER DEDICATED TO INTERNAL COMMUNICATIONS IN OUR COMMUNICATIONS DEPARTMENT, AND THAT'S SOMETHING THAT GOING FORWARD, ESPECIALLY WITH ALL OF OUR STRATEGIC CHANGE THAT WE'RE WORKING THROUGH, THAT NEW MODEL THAT WE'RE WORKING THROUGH; INTERNAL COMMUNICATIONS IS SOMETHING THAT'S VERY IMPORTANT TO THE SUCCESS OF THOSE INITIATIVES, AND SO WE'RE RECOMMENDING ADDING A STAFF MEMBER TO THE COMMUNICATIONS DEPARTMENT TO HELP WITH INTERNAL COMMUNICATIONS.

OTHER OPERATING COSTS.

WE'RE RECOMMENDING A TOTAL OF $792,000 TO BE ADDED TO DEPARTMENT AND CAMPUS BUDGETS.

SO YOU CAN SEE THE TOP ONE THERE IS JUST INCREASE IN PER PUPIL ALLOTMENT TO CAMPUSES FOR ENROLLMENT GROWTH AT EXISTING CAMPUSES.

SO WE DID THE TWO NEW CAMPUSES ALREADY A FEW SLIDES AGO.

THIS IS JUST A LITTLE BIT OF EXTRA MONEY FOR THE OTHER CAMPUSES THAT ARE SEEING ENROLLMENT GROWTH AND THEN INCREASED COST OF GOODS AND SERVICES JUST ACROSS THE BOARD.

SO THESE ARE RECOMMENDATIONS FOR INCREASED COSTS FOR CENTRAL DEPARTMENTS, NOT NEW INITIATIVES, BUT JUST COSTS FOR THINGS THAT ARE GOODS AND SERVICES THAT ARE RISING BECAUSE OF INFLATION OR COSTS OF GOODS AND SERVICES THAT ARE TIED TO THE NUMBER OF CAMPUSES THAT WE HAVE OR THE NUMBER OF STUDENTS THAT WE SERVE, THAT KIND OF THING. SOME OF THOSE COSTS ARE GOING UP.

WE HAVE WORKED REALLY HARD TO TRY AND MOVE MONEY AROUND TO ACCOMMODATE AS MANY OF THOSE NEEDS AS POSSIBLE.

SO YOU'LL SEE THAT DISTRICT WIDE ACROSS ALL OF OUR DEPARTMENTS.

SOME DEPARTMENTS GAVE UP MONEY TO THE TUNE OF ABOUT 1.2 MILLION, AND OTHER DEPARTMENTS NEEDED THAT MONEY, PLUS A LITTLE BIT MORE, AND SO THAT'S THE BALANCE OF THOSE TWO. YES.

UNDER NUMBER 12 FOR THE RAIL ACADEMIC ADVISOR AND THE RAIL TEACHER AT 166,200.

YES. SALARY WISE, IS THAT DIVIDED BETWEEN THESE TWO EMPLOYEES? I DON'T BELIEVE SO. LET ME GET THAT FOR YOU.

HANG ON.

ON YOUR SHEET, IN YOUR FOLDER, THERE'S A DETAIL OF ALL OF THESE ADJUSTMENTS, AND IT HAS EACH COST BROKEN OUT INDIVIDUALLY. SO IF YOU LOOK ON PAGE THREE, YOU'LL SEE THE ACADEMIC ADVISOR AND THE TEACHER.

SO THE ACADEMIC ADVISOR IS $98,100 AND THE REAL TEACHER IS $68,100, AND I WILL TAKE THIS AS AN OPPORTUNITY TO MENTION THAT WE BUDGET NEW POSITIONS AT THE MIDPOINT OF EACH PAY GRADE AND WE INCLUDE ALL POTENTIAL BENEFITS, FRINGE COSTS, ALL OF THAT.

SO WE RARELY HIRE A PERSON IN AT THE SALARY THAT'S LISTED IN THE BUDGET, BUT WE WANT TO MAKE SURE THAT WHEN WE ALLOCATE A NEW POSITION, WE BUDGETED ENOUGH MONEY TO HIRE A TENURED, EXPERIENCED PERSON RATHER THAN THE ABSOLUTE LOW END OF THE PAY GRADE.

SO THAT GOES FOR ALL OF THE POSITIONS, THE NEW POSITIONS THAT YOU SEE.

SO HERE'S THE GENERAL FUND BUDGET.

SO I MENTIONED BEFORE, IF YOU LOOK IN THE FIRST COLUMN, WE HAD $597.6 MILLION OF REVENUE AVAILABLE FOR APPROPRIATION.

SO REVENUE THAT WE CAN ACTUALLY SPEND, THAT DOESN'T JUST COME IN AND GO RIGHT BACK OUT OUR BASELINE BUDGET.

SO THIS IS THE BUDGET BASICALLY LAST YEAR'S ADOPTED BUDGET EXCLUDING FLOW THROUGH COSTS, EXCLUDING ANY ONE TIME COSTS PLUS ANY BUDGET AMENDMENTS THAT YOU GUYS HAVE APPROVED TO DATE.

THAT'S WHAT WE CALL OUR BASELINE BUDGET.

WE'RE JUST ROLLING THAT FORWARD.

PLUS, THE RECOMMENDATIONS THAT I JUST MADE ADD UP TO 619.9 MILLION, WHICH GIVES US A $22.3 MILLION DEFICIT BUDGET.

THEN WE HAVE $72.6 MILLION OF FLOW THROUGH TO GET TO OUR TOTAL REVENUE AND EXPENSES THAT ARE IN THE BUDGET.

SO LET'S TALK ABOUT THE $22.3 MILLION DEFICIT.

THIS IS FUN BALANCE.

SO LAST YEAR'S ENDING FUND BALANCE WAS JUST UNDER $250 MILLION.

[01:30:02]

WE ARE PROJECTING A SURPLUS FOR THIS YEAR.

RIGHT NOW THE PROJECTION IS SITTING AT ABOUT 10.7 MILLION.

THAT IS DIRECTLY RELATED TO ESSER FUNDING THAT WE WERE ABLE TO USE TO SUPPLANT SOME OF THIS YEAR'S EXPENSES, AND BECAUSE WE WERE ABLE TO ESSENTIALLY MOVE THOSE EXPENSES OUT OF THE GENERAL FUND AND INTO THE ESSER FUND THAT GENERATED A SURPLUS IN THE GENERAL FUND.

SO LAST YEAR'S FUND BALANCE PLUS THIS YEAR SURPLUS.

WE HAVE SOME EXISTING FUND BALANCE ASSIGNMENTS THAT'S MONEY THAT'S SET ASIDE FOR THOSE THINGS LIKE RETENTION INCENTIVES, CLASSROOM SUPPLIES, STIPENDS.

WE HAVE MONEY SET ASIDE FOR CLAIMS, INSURANCE CLAIMS, CONTINGENCIES, THAT KIND OF THING, AND THEN AGAIN, I'M RECOMMENDING THAT WE USE THAT SURPLUS MONEY AND SET IT ASIDE FOR FUTURE RETENTION INCENTIVES SO THAT WE CAN LENGTHEN THE AMOUNT OF TIME THAT WE CAN PAY THOSE OUT FROM ABOUT THREE AND A HALF YEARS TO FIVE YEARS.

WE TRY TO MAINTAIN AN INFORMAL TARGET FOR CASH FLOW OF ABOUT $150 MILLION.

SO REMEMBER THE WAY THAT OUR FISCAL YEAR WORKS? WE START THE SCHOOL YEAR IN AUGUST.

WE DON'T ACTUALLY START COLLECTING REVENUE UNTIL MAYBE NOVEMBER.

THE BULK OF OUR REVENUE DOESN'T COME IN UNTIL DECEMBER OR JANUARY, AND SO WE REALLY NEED FUND BALANCE TO BE ABLE TO PAY THOSE BILLS FOR THE FIRST 3 TO 4 MONTHS OF OUR FISCAL YEAR.

SO WE MAKE SURE THAT WE HAVE ENOUGH IN FUND BALANCE TO COVER THAT CASHFLOW NEED.

SO WHEN YOU TAKE THAT OUT, THAT LEAVES US WITH ABOUT $66.9 MILLION AVAILABLE FOR A RAINY DAY.

NOW, THAT WILL CHANGE SLIGHTLY AS WE GET TO THE END OF OUR FISCAL YEAR AND CLOSE THE BOOKS.

THOSE FUND BALANCE ASSIGNMENTS WILL VARY JUST A LITTLE BIT.

THE SURPLUS WILL NOT BE A PROJECTED SURPLUS.

IT WILL BE AN ACTUAL ONE, BUT ROUGHLY $66 MILLION AVAILABLE FOR A RAINY DAY.

SO YOU CAN SEE THAT CAN EASILY COVER A PROPOSED DEFICIT OF $22.3 MILLION.

WHEN WE TALKED ABOUT THIS IN FEBRUARY, WE TALKED ABOUT THE POSSIBILITY OF ADOPTING A DEFICIT BUDGET.

WE ALSO TALKED ABOUT HOW IF IT WAS LESS THAN $10 MILLION, IT WOULD LIKELY CORRECT ITSELF BY THE END OF THE YEAR BECAUSE WE PARCEL OUR BUDGET OUT INTO SO MANY DIFFERENT PIECES WITH SO MANY DIFFERENT BUDGET OWNERS, NOBODY SPENDS 100% OF THEIR BUDGET DOWN TO THE PENNY EVERY YEAR.

EVERY ONE OF THOSE 150 OR SO BUDGET OWNERS LEAVES SOME AMOUNT OF MONEY ON THE TABLE, AND THAT'S BY DESIGN, BECAUSE THEY HAVE TO THEY HAVE TO PLAN FOR WHAT THEY THINK THEY'RE GOING TO NEED.

THAT NEED DOESN'T ALWAYS HAPPEN EVERY SINGLE YEAR.

IT MAY HAPPEN SOME YEARS.

IT MAY NOT HAPPEN OTHER YEARS, BUT THAT BUDGET NEEDS TO BE AVAILABLE TO THEM.

SO NO BUDGET OWNER SPENDS 100% OF THEIR BUDGET.

SO WHEN YOU SCOOP ALL OF THOSE REMAINING BUDGETS UP AT THE END OF THE YEAR, THAT EQUALS ABOUT 2% IN SAVINGS, WHICH IS PRETTY NORMAL IF YOU COMPARE THAT TO OTHER DISTRICTS.

WE ALSO BUDGET FAIRLY CONSERVATIVELY FOR REVENUE.

WE DON'T BUILD THINGS LIKE ENROLLMENT GROWTH MIDYEAR INTO OUR REVENUE PROJECTIONS.

WE ALWAYS BUDGET BASED ON THE OCTOBER SNAPSHOT.

IN FRISCO, WE'RE A LITTLE BIT UNIQUE IN THAT WE CONTINUE TO GROW THROUGHOUT THE YEAR SO THOSE ADDITIONAL STUDENTS THAT WE'RE ADDING TO ENROLLMENT FROM THE END OF OCTOBER THROUGH THE END OF MAY, WE GET REVENUE FOR THOSE STUDENTS, BUT WE DON'T BUDGET FOR THAT REVENUE.

WE WAIT UNTIL IT'S SETTLED UP FROM THE STATE AND THEN WE BUDGET FOR THOSE KIDS MOVING FORWARD AND THAT'S JUST ONE WAY THAT WE CAN BE CONSERVATIVE SO THAT IF WE MISS THE TARGET FOR WHATEVER REASON, BECAUSE WE ARE FAST GROWTH, AND SO IF WE MISS THAT ENROLLMENT PROJECTION BY EVEN JUST A LITTLE BIT, IT COULD BE MILLIONS OF DOLLARS, AND SO THAT'S ONE OF THE WAYS THAT IT HELPS US KIND OF CUSHION FOR THE FACT THAT WE CAN'T PREDICT ENROLLMENT GROWTH.

SO ALL THAT TO SAY A DEFICIT BUDGET OF $10 OR LESS IS GENERALLY CORRECTED BY THE END OF THE YEAR BECAUSE OF HOW LARGE WE ARE AND HOW FAST GROWTH WE ARE. A DEFICIT BUDGET GREATER THAN 10 MILLION, IT WON'T BE 22.3 MILLION BY THE END OF THE YEAR, BUT IT PROBABLY WILL BE SOME DEFICIT AMOUNT BY THE END OF THE YEAR, AND SO THAT CAN EASILY BE COVERED BY THE FUND BALANCE THAT WE HAVE AVAILABLE, BUT IT MAY PUT A STRAIN ON OUR ABILITY TO BALANCE IN THE FUTURE.

SO IT WILL DEPEND HEAVILY ON WHAT THE LEGISLATURE APPROPRIATES IN THE NEXT SESSION.

WE'LL HAVE TIME TO BALANCE IT, BUT IT IS GOING TO BE MORE OF A CHALLENGE THAN WHAT IT WOULD HAVE BEEN HAD IT NOT BEEN THAT LARGE OF A DEFICIT BUDGET.

SO TO ANSWER YOUR QUESTION THAT YOU ASKED EARLIER ABOUT WHETHER WE HAVE ESSER MONEY TO HELP INCREASE THE RAISE AMOUNT, THAT'S EXACTLY WHAT WE DID.

[01:35:07]

SO THE ORIGINAL THOUGHT ABOUT HOW MUCH WE COULD AFFORD FOR RAISES WAS OBVIOUSLY SIGNIFICANTLY LESS.

IF WE HAD ADOPTED A BALANCED BUDGET, IT WOULD HAVE BEEN SOMETHING MUCH LESS.

WE ARE RECOMMENDING THAT AMOUNT OF A RAISE TO GET TO THIS LARGE DEFICIT BUDGET.

WE DO HAVE $17 MILLION WORTH OF ESSER MONEY FOR NEXT YEAR THAT WE CAN USE TO HELP COVER THAT DEFICIT.

SO WE SAT DOWN WITH TEACHING AND LEARNING WITH STUDENT SERVICES, WITH HR AT ALL OF THE PLANS THAT WE HAVE WITH ESSER MONEY, AND WE SAID WHAT DO WE NEED TO KEEP GOING FORWARD AND WHAT CAN WE APPROPRIATE TOWARDS STAFF COMPENSATION? AND SO WE IDENTIFIED $17 MILLION OF THE ESSER MONEY THAT'S REMAINING THAT WE COULD PUT TOWARDS THIS DEFICIT.

THAT ESSENTIALLY BUYS US ONE MORE YEAR TO BALANCE IT, TO WAIT TO SEE WHAT THE LEGISLATURE DOES AND TO MOVE FORWARD FROM THERE.

QUESTIONS? IS THAT OUR TOTAL AMOUNT OF ESSER FUNDING LEFT? 17 MILLION OR WE HAVE X AMOUNT AND 17 WE CAN USE TOWARDS THIS.

WE HAVE SOME MORE.

THAT'S ACTUALLY A REPORT AT THE REGULAR JUNE BOARD MEETING THAT I HAVE FOR YOU, AND I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD, BUT WE HAVE MADE SURE TO KEEP SOME OF THOSE SUPPORTS THAT WE'VE PUT IN PLACE THAT STEPHANIE COOK TALKED ABOUT A LITTLE BIT AGO.

WE'RE KEEPING THOSE IN PLACE.

WE'RE NOT ELIMINATING THOSE TO HELP PAY FOR THIS.

AND THEN WE HAVE SOME ADDITIONAL MONEY IN CASE OTHER THINGS COME UP THAT WE FIND THAT WE NEED TO BE ABLE TO PAY FOR TO HELP SUPPORT SOME OF THOSE POST-COVID THINGS.

SO THIS IS THE AMOUNT OF MONEY THAT WE'VE IDENTIFIED THAT WE COULD EASILY PUT TOWARDS.

I'M GLAD THAT YOU MENTIONED THAT ABOUT.

I THINK THAT GAVE US ALL A MAJOR PAUSE THAT THESE VERY IMPORTANT SERVICES FOR OUR KIDS, FOR THEIR MENTAL HEALTH WERE JUST GOING AWAY, AND SO I WANTED TO JUST CONFIRM THAT WE'RE NOT MAKING A DECISION TO NOT DO THAT, BUT TO DO THIS INSTEAD.

CORRECT, WE'RE NOT MAKING A DECISION TO NOT DO THAT AND THIS INSTEAD.

PERFECT. ONE OF THE THINGS THAT WE DO, WE HAVE TALKED ABOUT WITH EVERY DECISION WE'VE MADE WITH ESSER MONEY IS WHAT IS OUR--I CALL IT AN EXIT STRATEGY. IT'S NOT ALWAYS AN EXIT STRATEGY.

SOMETIMES IT'S A SUSTAINMENT PLAN, BUT WHAT IS OUR PLAN WHEN THAT MONEY RUNS OUT AND IN SOME CASES, IT'S WE'RE GOING TO TAKE A COUPLE OF YEARS AND FIGURE OUT HOW WE CAN DO THIS REALLY EFFICIENTLY AND ABSORB IT.

SOMETIMES IT'S WE MAY HAVE TO COME BACK IN A COUPLE OF YEARS AND REQUEST TO APPROPRIATE GENERAL FUND MONEY FOR IT WHEN THE ESSER MONEY RUNS OUT.

SO THAT'S SOMETHING AS WE GET CLOSER TO THE EXPIRATION OF OF ESSER FUNDING, EVERYBODY THAT HAS HIRED ANY POSITION OR PUT ANY SUPPORT IN PLACE WITH US OR MONEY IS LOOKING AT.

AND THEN LAST YEAR WE HAD SOME ESSER FUNDS TO CATER FOR THE LUNCH FOR OUR STUDENTS.

IS THAT AVAILABLE FOR NEXT YEAR, TOO? IT IS NOT, AND I'LL TALK ABOUT THAT A LITTLE BIT WHEN I GET TO THE CHILD NUTRITION BUDGET.

ANY OTHER QUESTIONS ON THE GENERAL FUND BUDGET? OKAY, THANK YOU.

ALL RIGHT, MOVING ON TO THE OTHER TWO FUNDS.

DEBT SERVICE AND CHILD NUTRITION.

ARE THE OTHER TWO FUNDS THAT YOU GUYS FORMALLY ADOPT.

THEY'RE EASIER THAN THE GENERAL FUND BUDGET.

THE GENERAL FUND BUDGET IS THE BIGGEST AND MOST COMPLICATED OF THEM ALL.

SO I'M GOING TO RUN THROUGH REALLY QUICK.

OUR OUTSTANDING DEBT AND OUR PROPOSED DEBT SERVICE BUDGET FOR NEXT YEAR.

SO THIS IS A GRAPH OF OUR OUTSTANDING DEBT PAYMENTS.

THE DARK RED IS OUR CURRENT DEBT PAYMENTS EACH YEAR GOING FORWARD, THE LIGHTER RED IS PROJECTED FUTURE DEBT PAYMENTS. I WILL SAY THAT THIS IS PROJECTED FUTURE DEBT PAYMENTS ONLY TO FINISH OUT WHAT'S LEFT OF OUR CURRENT BOND PROGRAM.

SO, WE WILL NEED ANOTHER BOND PROGRAM SOMETIME BEFORE 2031.

SO THERE WILL BE PROBABLY ADDITIONAL DEBT LAYERED ON TOP OF THAT AS OF RIGHT NOW WITH THE WAY THAT WE'RE PROJECTING PROPERTY VALUES TO INCREASE, WITH THE WAY THAT THEY INCREASE THIS YEAR AND THE WAY WE'RE PROJECTING THEM TO INCREASE, WE HAVE THE CAPACITY AT A 27% TAX RATE WITH THE FUND BALANCE THAT WE HAVE AVAILABLE IN THE DEBT SERVICE FUND. SO IT TAKES A COMBINATION OF THOSE TWO TO CONTINUE TO PAY OUR EXISTING AND PROJECTED FUTURE DEBT PAYMENTS FOR THIS BOND PROGRAM.

SO THAT IS REALLY PHENOMENAL, AND I CREDIT [INAUDIBLE], OUR FINANCIAL ADVISOR, A LOT WITH HELPING US BUILD OUR DEBT PAYMENT PLANS SO THAT WE CAN MANAGE THAT TAX RATE.

IF YOU GUYS REMEMBER WHEN WE WENT OUT FOR THE BOND IN 2018, WE SAID WE COULD LOWER THE DEBT TAX RATE TO $0.27 FOR 2 TO 5 YEARS.

I DON'T KNOW THAT ANY OF US REALLY THOUGHT THAT WE WOULD MAKE IT TO FIVE YEARS UNLESS SOMETHING REALLY PHENOMENAL HAPPENED WITH PROPERTY VALUE GROWTH, BUT WE KNEW IT WAS A

[01:40:07]

POSSIBILITY. I THOUGHT MAYBE THREE WAS MORE LIKE THE MAGIC NUMBER, BUT IT LOOKS LIKE WE COULD ACTUALLY FINISH OUT THIS BOND PROGRAM OUT OF 27% DEBT TAX RATE.

SO THAT'S REALLY AWESOME.

SO THE DARK BLUE THAT'S BEHIND THE BARS IS WHAT OUR CAPACITY IS AT $0.27 WITH THE FUND BALANCE THAT WE HAVE AVAILABLE TO US.

THE LIGHT BLUE THAT'S ON TOP OF THAT SHOWS YOU OUR ACTUAL DEBT CAPACITY.

SO $0.50 IS THE MAXIMUM DEBT TAX RATE THAT WE CAN ADOPT AS A SCHOOL DISTRICT IN TEXAS.

SO YOU CAN SEE WE HAVE SIGNIFICANT CAPACITY TO ADD MORE DEBT IN A FUTURE BOND PROGRAM, AND WE WON'T GET ANYWHERE NEAR 50 CENT DEBT TAX RATE, WHICH IS JUST PHENOMENAL.

IT'S THANKS TO THE GROWTH IN FRISCO AND ALL OF THE NEW CONSTRUCTION THAT COMES ONLINE EVERY YEAR.

YOU DO HAVE A CHART IN YOUR FOLDER AND THERE WAS ONE ON THE PREVIOUS SCREEN OF OUR ANNUAL DEBT PAYMENT.

SO IF YOU'RE INTERESTED TO SEE HOW MUCH MONEY OUR ANNUAL DEBT PAYMENT IS, THAT'S IN THERE , AND IT WAS ALSO LINKED ON THE PREVIOUS SLIDE.

THIS IS OUR DEBT SERVICE FUND BUDGET PROPOSED FOR NEXT YEAR.

I'VE BROKEN THE REVENUE DOWN BY TAX REVENUE AND INVESTMENT EARNINGS AND THEN OUR REVENUE.

SO RENEE, YOU MENTIONED, DO WE GET TO KEEP ANY OF OUR TIF REVENUE? WE DO GET TO KEEP A PORTION OF IT.

SO THE WAY THAT THE TIF REVENUE WORKS IS WE COLLECT PROPERTY TAXES FROM THE TIF ZONE, THE TERS ZONE, WHICH IS THAT ACREAGE AROUND STONEBRIAR MALL.

WE COLLECT THAT REVENUE.

THE STATE ALSO GIVES US A SUPPLEMENT FOR THAT REVENUE THANKS TO A HOLD HARMLESS THAT WAS PUT IN PLACE YEARS AGO, AND 100% OF THAT REVENUE IS COLLECTED IN OUR GENERAL FUND AND GOES RIGHT OUT TO THE CITY OF FRISCO.

THE CITY PUTS THAT INTO THEIR TIF FUND.

THEY USE IT TO FUND OUR PORTION OF THE PUBLIC PRIVATE PARTNERSHIPS THAT WE'RE A PART OF, AND THEN ANY REMAINING MONEY THAT WE HAVE GENERATED FROM THAT TAX BASE THAT IS NOT NEEDED FOR THOSE AGREED UPON PAYMENTS.

IT COMES BACK TO US AND WE CAN USE IT IN ONE OF TWO WAYS.

WE CAN USE IT TO FUND DEBT ON EXISTING SCHOOL BUILDINGS, OR WE CAN USE IT TO CONSTRUCT NEW SCHOOL BUILDINGS.

SO WE HISTORICALLY HAVE PUT THAT MONEY INTO OUR DEBT SERVICE FUND AND HELPED PAY DEBT WITH IT, AND THAT IS, AGAIN, ONE OF THE REASONS THAT WE'RE ABLE TO MAINTAIN A 27 CENT TAX RATE.

IT'S REALLY UNHEARD OF FOR A SCHOOL DISTRICT.

THAT'S AS FAST GROWTH AS WE ARE, THAT'S BUILDING AS MANY BUILDINGS AS WE ARE TO HAVE THAT LOW OF A DEBT TAX RATE.

SO THAT'S ONE OF THE BENEFITS OF HAVING THAT [INAUDIBLE].

IT'S ABLE TO HELP US KEEP THAT TAX RATE LOW.

SO THAT IS THE PROJECTED REVENUE.

THE BOND PRINCIPAL AND INTEREST.

ONE OF THE THINGS I'LL MENTION, WE ALWAYS BUDGET FOR MORE BOND PRINCIPAL AND INTEREST THAN IS WHAT'S ACTUALLY ON THAT SCHEDULE BECAUSE WE SELL DEBT GENERALLY TWICE A YEAR, AND SO DEPENDING ON THE TIMING OF WHEN WE GO OUT AND SELL BONDS AND WHEN THAT FIRST PAYMENT COMES DUE, WE WANT TO MAKE SURE WE HAVE BUDGET AVAILABLE TO PAY THAT FIRST DEBT PAYMENT IF IT HAPPENS BEFORE THE END OF OUR FISCAL YEAR.

SO THAT'S WHY THE BOND PRINCIPAL AND INTEREST BUDGET THAT YOU SEE DOESN'T MATCH THE PRINCIPAL AND INTEREST REQUIRED PAYMENT THAT YOU SEE ON YOUR OTHER SCHEDULE BECAUSE WE'VE BUILT IN SOME BUDGET JUST IN CASE WE NEED TO MAKE A PAYMENT ON NEW DEBT BEFORE THE END OF THE FISCAL YEAR.

SO WE'RE PLANNING FOR WE'RE BUDGETING FOR A TEN AND A HALF MILLION DOLLAR DEFICIT IN THE DEBT SERVICE FUND, WHICH WOULD BE MADE UP OF MADE UP BY EXISTING DEBT SERVICE FUND BALANCE.

DEPENDING ON THE TIMING FOR WHEN WE ISSUE DEBT, IT WILL LIKELY BE LESS THAN TEN AND A HALF MILLION DOLLAR DEFICIT.

ANY QUESTIONS ON DEBT SERVICE? ACTUALLY, I DO HAVE A QUICK QUESTION.

I KNOW THAT DURING THE YEAR THAT YOU GUYS WORK RELENTLESSLY TO SAVE US MONEY ON THE DEBT SERVICE SIDE BY WORKING WITH BRYAN AND HIS GROUP TO SAVE AS MUCH MONEY AS WE CAN.

WHEN WHEN WILL WE KNOW IF WE CAN EITHER--AND REFINANCE IS NOT THE RIGHT WORD --WHEN WILL WE KNOW IF WE CAN REFINANCE SOME OF OUR CURRENT DEBT THAT MIGHT HELP TO TAKE SOME OF THIS DEFICIT OFF OF OUR BOOKS? THAT'S A GOOD QUESTION. SO WE LOOK AT REFINANCING DEBT EVERY TIME WE ISSUE NEW BONDS.

WE WORK WITH BRYAN TO LOOK AT WHAT DEBT WE HAVE THAT MIGHT BE CALLABLE, MEANING IT'S ABLE TO BE REFINANCED.

WE LOOK AT WHAT INTEREST RATES ARE LOOKING LIKE IN THE MARKET AND WE DECIDE IF REFINANCING WOULD GENERATE ENOUGH OF A SAVINGS TO MAKE IT WORTH OUR WHILE WITH THE DEBT

[01:45:04]

FEES THAT WE HAVE TO PAY AND THAT KIND OF THING.

SO FOR EXAMPLE, WHEN WE SOLD BONDS THIS PAST MAY, WE HAD A REFUNDING COMPONENT BUILT IN, THE MARKET DID NOT GO OUR WAY FOR REFINANCING THAT DAY.

IT WAS A GREAT DAY IN THE MARKET FOR NEW MONEY, BUT THE REFINANCING COMPONENT DIDN'T GENERATE ENOUGH SAVINGS.

SO WE PULLED IT OFF AT THE LAST MINUTE, AND SO WE LOOK AT IT EVERY TIME WE ISSUE DEBT TO SEE IF THAT'S AVAILABLE TO US.

ANY OTHER QUESTIONS ON DEBT SERVICE? OKAY, CHILD NUTRITION FUND IS THE LAST ONE, AND SO [INAUDIBLE] THIS ANSWERS YOUR QUESTION ABOUT WHETHER WE HAVE THE ADDITIONAL REVENUE AVAILABLE TO PROVIDE ALL STUDENTS WITH FREE LUNCH NEXT YEAR.

THAT WAS A WAIVER PROVIDED BY THE USDA THAT ALLOWED ALL SCHOOL DISTRICTS ACROSS THE COUNTRY TO PARTICIPATE IN THE NATIONAL SCHOOL LUNCH PROGRAMS, WHAT THEY CALL THE SEAMLESS SUMMER OPTION.

WHAT THAT NORMALLY IS, IS A SUMMER FEEDING PROGRAM THAT ALLOWS STUDENTS WHO ARE IN NEED OF FOOD DURING THE SUMMER TO RECEIVE FREE MEALS BECAUSE OF COVID AND TO PUT SOME SUPPORTS IN PLACE FOR SCHOOLS TO CONTINUE TO FEED STUDENTS. THE USDA GRANTED A WAIVER FOR ANY SCHOOL DISTRICT TO BE ABLE TO UTILIZE THAT SEAMLESS SUMMER OPTION ALL YEAR ROUND, REGARDLESS OF WHETHER STUDENTS QUALIFY FOR FREE AND REDUCED LUNCH.

THAT WAIVER EXPIRED OR EXPIRED AT THE END OF THIS SCHOOL YEAR.

WE DON'T HAVE ANY INDICATION AT THIS POINT WHETHER THEY WILL EXTEND IT AGAIN, AND SO THE BUDGET FOR CHILD NUTRITION IS BASED ON US GOING BACK TO THE WAY THAT IT WAS PRE-COVID WHERE STUDENTS WOULD PAY FOR LUNCHES AND WE WOULD GENERATE FEDERAL REVENUE BASED ON THE FREE AND REDUCED LUNCHES THAT WE SERVE.

SO THE STUDENTS THAT QUALIFY FOR FREE AND REDUCED LUNCH PROGRAMS, AND SO YOU'LL SEE THAT'S WHERE THE HUGE DIFFERENCE IN THE REVENUE BUDGET IS.

YOU'LL SEE IT SHIFTED SIGNIFICANTLY FROM GRANT REVENUE LAST YEAR TO LOCAL REVENUE NEXT YEAR.

THE OVERALL INCREASE IN REVENUE EXPECTED FOR OUR CHILD NUTRITION FUND IS REALLY A RESULT OF INCREASED PARTICIPATION AND ENROLLMENT GROWTH.

THE EXPENSES FOR OUR CHILD NUTRITION FUND ARE EXPECTED TO INCREASE ALSO.

THE SAME RAISES THAT WE TALKED ABOUT A FEW MINUTES AGO WITH THE COMPENSATION PLAN WOULD BE EXTENDED TO ANY EMPLOYEE REGARDLESS OF WHAT FUNDING SOURCE THEY'RE PAID FROM.

SO THE PAYROLL INCREASE, WELL, THERE'S NOT A PAYROLL INCREASE.

I'LL GET TO THAT IN A MINUTE, BUT THE RAISES FOR CHILD NUTRITION STAFF ARE BUILT INTO THE PROPOSED PAYROLL BUDGET FOR CHILD NUTRITION USING THE SAME MINIMUM WAGE INCREASES AND RAISES THAT I TALKED ABOUT DURING THE COMPENSATION SECTION.

ONE OF THE THINGS THAT OUR CHILD NUTRITION DEPARTMENT HAS DONE OVER THIS PAST YEAR, BECAUSE THE LABOR MARKET HAS BEEN SO SCARCE FOR CHILD NUTRITION, FOR CAFETERIA WORKERS, IS THEY HAVE REALLY LOOKED AT WAYS THAT WE CAN RESTRUCTURE OUR EXISTING CAFETERIA STAFFING PLANS TO BE ESSENTIALLY MORE FULLY STAFFED AND PROVIDE ALL THE SAME SERVICES WITH FEWER PEOPLE, BECAUSE WE'RE HAVING A REALLY HARD TIME FINDING STAFF TO WORK IN OUR CAFETERIAS , AND SO THE COST SAVINGS THAT THEY'RE PROJECTING BY DOING SOME OF THAT RESTRUCTURING AND ESSENTIALLY NOT HAVING THE STAFF AVAILABLE, THAT WE ARE NOT HAVING THE LEVEL OF STAFFING THAT WE'VE HAD IN THE PAST OUTPACES THE AMOUNT OF THE RAISE IN THEIR PAYROLL BUDGET. SO THAT'S WHY YOU SEE A LITTLE BIT OF A DECREASE THERE.

THE COST OF GOODS, CHILD NUTRITION IS FEELING THAT PRETTY SIGNIFICANTLY.

SO SOME OF THE COST OF SUPPLIES INCREASE PAPER PRODUCTS.

A LOT OF THOSE ARE INFLATIONARY.

THE COST OF FOOD IS INFLATIONARY AND ALSO SOMEWHAT OF AN INCREASE IN PARTICIPATION IN THE PROGRAM.

THEY ARE PROJECTING A DEFICIT BUDGET OF $1.5 MILLION.

ONE OF THE THINGS ABOUT OUR CHILD NUTRITION PROGRAM IS THE NATIONAL SCHOOL LUNCH AND BREAKFAST PROGRAM.

IN ORDER TO BE PART OF THAT, THERE ARE SOME FINANCING RULES.

YOU CANNOT MAINTAIN A FUND BALANCE GREATER THAN THREE MONTHS OF YOUR OPERATING EXPENSES IN YOUR CHILD NUTRITION FUND BECAUSE OF THAT SEAMLESS SUMMER OPTION THAT WE'VE BEEN ABLE TO GENERATE ALL OF THAT GRANT FUNDING FOR, WE ARE EXCEEDING THAT THREE MONTH REQUIREMENT, AND SO WE'RE GOING TO BE REQUIRED TO PUT A PLAN IN PLACE TO SPEND DOWN THAT FUND BALANCE OVER A PRETTY SHORT PERIOD OF TIME.

THEY USUALLY GIVE YOU A COUPLE OF YEARS TO GET IT SPENT DOWN.

SO THAT DEPARTMENT IS LOOKING AT ANY KIND OF CAPITAL NEEDS THAT THEY MIGHT HAVE THAT MAYBE WEREN'T PLANNED FOR IN THE BOND

[01:50:09]

PROGRAM OR THAT HAVE COME UP.

THEY WILL BE LOOKING AT WAYS TO SOMETIMES IT'S BUYING MORE EXPENSIVE FOOD, THAT KIND OF THING.

SO WE HAVE TO PUT A PLAN IN PLACE TO SPEND THAT FUND BALANCE DOWN IN A SHORT PERIOD OF TIME.

GENERALLY, WHEN SCHOOL DISTRICTS HAVE THAT AND HAVE TO GET DOWN TO THEIR SPENDING CAP, IT'S USUALLY THROUGH A CAPITAL SPEND PLAN BECAUSE CAPITAL ITEMS ARE GOOD WAYS TO SPEND ONE TIME MONEY. SO THAT DEFICIT WILL PROBABLY INCREASE OVER THE COMING YEAR.

HOW MUCH WILL WE HAVE TO SPEND TO BE ELIGIBLE FOR THOSE ADDITIONAL FUNDS AND HOW MUCH WOULD THE ADDITIONAL FUNDS BE? SO WE DON'T HAVE TO SPEND FOR THE ADDITIONAL FUNDS.

THE ADDITIONAL FUNDS ARE BASED ON YOUR FREE AND REDUCED LUNCH POPULATION.

SO WE DON'T HAVE A LARGE ENOUGH POPULATION OF STUDENTS THAT QUALIFY FOR FREE AND REDUCED LUNCHES TO SERVE ALL STUDENTS AT A CAMPUS FOR FREE, FOR EXAMPLE.

SO THERE ARE SOME SCHOOL DISTRICTS WITH CERTAIN SCHOOLS WHERE THAT POPULATION OF FREE AND REDUCED LUNCH KIDS IS SO HIGH THAT THEY CAN JUST FEED THE WHOLE SCHOOL FOR FREE.

NONE OF OUR SCHOOLS COME NEAR THAT PERCENTAGE THRESHOLD AND THE OPTION THAT ALLOWED US TO DO THAT, LIKE I SAID, IT'S NORMALLY ONLY AVAILABLE TO DISTRICTS IN THE SUMMER.

SO THAT WAS A WAIVER THAT ALLOWED US TO DO IT DURING THE SCHOOL YEAR, AND THAT WAIVER HAS EXPIRED.

SO EVEN THE SCHOOL DISTRICTS THAT HAVE HIGHER POPULATIONS OF FREE AND REDUCED LUNCH STUDENTS CAN'T DO THAT DURING THE REGULAR SCHOOL YEAR ANYMORE UNLESS THEY HAVE A HIGH ENOUGH POPULATION TO SERVE ALL STUDENTS FOR FREE.

ANY OTHER QUESTIONS ON THE CHILD NUTRITION BUDGET? WE'RE AT THE END. I DID IT IN 2 HOURS.

NEXT STEPS. SO ON JUNE 13TH, WE WILL HAVE OUR PUBLIC HEARING ON THE BUDGET.

SO, THE REGULAR BOARD MEETING, I WILL GIVE A VERY BRIEF RECAP OF WHAT WE WENT OVER TONIGHT WITH JUST THE HIGH LEVEL BUDGET INFORMATION, AND THERE WILL BE AN OPPORTUNITY FOR PUBLIC COMMENT FOR YOU GUYS TO HEAR ANY THOUGHTS THAT OUR COMMUNITY HAS ABOUT THIS BUDGET, AND THEN ON JUNE 20TH, WE HAVE A MEETING SCHEDULED FOR YOU GUYS TO OFFICIALLY VOTE ON THE BUDGET.

THE TAX RATE WILL BE ADOPTED IN AUGUST AFTER WE GET CERTIFIED PROPERTY VALUES IN JULY AND RECEIVE OUR TAX RATE, OUR M&O TAX RATE FROM TEA, WHICH USUALLY HAPPENS THE FIRST WEEK OF AUGUST.

SO WE CAN LIKELY BRING THE RECOMMENDED TAX RATE TO YOU GUYS AT YOUR AUGUST BOARD MEETING TO ADOPT.

DO YOU GUYS HAVE QUESTIONS OR THOUGHTS OR DISCUSSION? I HAVE 14 QUESTIONS.

MANY OF THEM ARE MULTI-PART.

JUST KIDDING. [CHUCKLING] LOOK AT TODD.

I DON'T HAVE ANY QUESTIONS.

CORY'S ABOUT TO RUN OUT.

WE'VE BEEN COMMUNICATING ON THIS FOR A LONG TIME, SO I DON'T HAVE ANY QUESTIONS.

I AM APPRECIATIVE OF ALL THE EFFORT THAT GOES INTO THIS, FROM THE CAMPUSES TO ALL THE MANAGING DIRECTORS.

THIS BUDGET PROCESS IS SUBSTANTIAL AND EXTENSIVE, AND WE APPRECIATE THE WORK THAT YOU ALL PUT INTO IT, AND WE'RE SO HAPPY EVERY YEAR THAT YOU LEAD THIS PROCESS.

SO THANK YOU FOR ALL OF YOUR EXPERTISE.

YOU KNOW, I THINK THAT IT'S A BOLD BUDGET, AND I THINK THAT AS I LOOK AT IT AND AS WE'VE WATCHED IT EVOLVE OVER THE LAST MANY MONTHS, IT IS 100% FOCUSED ON TEACHER RETENTION AND RECRUITMENT, AND IN THIS CURRENT ECONOMY AND MARKET WHERE IT'S YOU KNOW, WE HEARD FROM DR.

LINTON ABOUT JUST THE MASSIVE AMOUNT OF FOLKS THAT ARE LEAVING THEIR PROFESSION, INCLUDING EDUCATION, BUT THROUGHOUT OTHER INDUSTRIES AS WELL.

IT BEHOOVES US TO UTILIZE THIS BUDGET TO TRY TO MAINTAIN OUR FOLKS AND TO BE ABLE TO HIRE NEW.

SO I'M APPRECIATIVE THAT THAT'S BEEN THE FOCUS OF YOUR OFFICE AND OF OUR CAMPUSES AS WE'VE BEEN WORKING ON THIS FOR THE LAST YEAR.

SO, THAT'S ALL I'LL SAY.

THANK YOU. I SEE THAT STEPHANIE HAS A QUESTION.

SO, I'LL OPEN THAT UP.

YEAH, THANK YOU.

I JUST HAD A COUPLE OF QUESTIONS THAT I THOUGHT OF TOWARDS THE END HERE.

WHAT IS THE BUDGET FOR TEACHER TRAINING?

[01:55:01]

I KNOW TEACHERS DO SEVERAL PROFESSIONAL DEVELOPMENT TYPE DISTRICT SPONSORED TRAININGS THROUGHOUT THE YEAR.

WHAT IS THE BUDGET FOR THAT? I DON'T HAVE THAT BROKEN OUT SPECIFICALLY.

WE HAVE TRAINING BUILT IN TO A NUMBER OF DEPARTMENT BUDGETS, AND SO THAT'S IN A COUPLE OF DIFFERENT FORMS. SOME IS TRAVEL TO CONFERENCES OR TRAINING; SOME OF IT IS CONSULTANTS THAT ARE BROUGHT IN.

SOME OF THAT'S JUST IN-HOUSE TRAINING.

THAT DOESN'T NECESSARILY COST US ANYTHING, AND THAT'S REALLY UP TO THE DEPARTMENT TO BUDGET SPECIFICALLY.

SO AT A HIGH LEVEL, AT THE DISTRICT LEVEL, WE DON'T BREAK IT OUT AT THAT GRANULAR OF A LEVEL.

IF YOU HAVE SPECIFIC TEACHER TRAINING THAT YOU WANT US TO LOOK AT, WE CAN GO TO WHATEVER DEPARTMENT OR CAMPUS OFFERS THAT AND WE CAN LOOK AT WHAT THAT SPECIFIC BUDGET IS, BUT AT THE DISTRICT LEVEL, AT THE GLOBAL VIEW, IT'S JUST NOT BROKEN DOWN THAT GRANULARLY.

OKAY, AND THEN I GUESS MY OTHER THOUGHT ISN'T REALLY A QUESTION, BUT JUST MORE OF A COMMENT.

I THINK IN LIGHT OF SOME OF THE CHALLENGES THAT WE ARE HAVING, RECRUITING AND RETAINING TEACHERS SPECIFICALLY, I KNOW WE'RE HAVING ISSUES WITH OTHER POSITIONS AS WELL.

I'M JUST A LITTLE CONCERNED ABOUT 4% MAY NOT BE ENOUGH TO HELP SOLVE THOSE PROBLEMS BECAUSE THERE'S OTHER COSTS TO TURN OVER AS WELL.

RIGHT. THERE'S HIDDEN COSTS.

YOU CAN'T ACCOUNT FOR THEM ON A LINE ITEM ON A BUDGET, BUT JUST IN TERMS OF TRAINING, GETTING NEW PEOPLE UP TO SPEED, WHETHER THEY'RE NEW TO THE DISTRICT OR NEW TO TEACHING. SO I'M JUST A LITTLE CONCERNED THAT 4% IS NOT GOING TO QUITE BE ENOUGH, AGAIN, IN LINE WITH SOME OTHER DISTRICTS THAT ARE RAISING THEIR STARTING SALARIES A LITTLE HIGHER THAN WE ARE ABLE TO DO AT THIS TIME.

YEAH, I MEAN, I DON'T NECESSARILY HAVE AN ANSWER FOR THAT.

I THINK THAT'S A FAIR CONCERN.

LIKE I SAID, I THINK IN WORKING WITH HR ON THE RECOMMENDATION FOR RAISES AND FOR BEGINNING TEACHER PAY, WE BELIEVE THAT WHAT WE'VE RECOMMENDED WILL KEEP US COMPETITIVE ALONG WITH ALL OF THE OTHER BENEFITS THAT WE OFFER THAT OTHER SCHOOL DISTRICTS DON'T NECESSARILY OFFER.

I MEAN, IT REALLY IS A FULL PACKAGE WHEN IT COMES TO RECRUITING NEW STAFF.

YOU KNOW, IT REMAINS TO BE SEEN WHAT SOME OF OUR NEIGHBORING DISTRICTS ARE EVEN PLANNING TO DO FOR NEXT YEAR.

WE DON'T NECESSARILY KNOW WHAT ALL THOSE DISTRICTS ARE DOING.

SO, YEAH, IT KIND OF REMAINS TO BE SEEN, BUT I THINK THAT IT'S THE LARGEST PERCENT RAISE WE'VE BEEN ABLE TO GIVE TO TEACHERS EVER , AND IT'S REALLY AS MUCH AS WE COULD SQUEEZE OUT OF OUR BUDGET WITHOUT GOING SO FAR DEFICIT THAT WE CAN'T SUSTAIN IT.

YES? SO THE STARTING TEACHER PAY IS JUST THE BEGINNING OF THE SALARY GUIDE.

SO THAT IS STARTING TEACHER PAY FOR A BRAND NEW TEACHER FRESH OUT OF SCHOOL WITH NO TEACHING EXPERIENCE.

SO IF YOU LOOK AT THAT GRAPH THAT I SHOWED WITH THE YEARS OF EXPERIENCE, WE HAVE MADE A REAL CONCERTED EFFORT OVER THE PAST SEVERAL YEARS TO MAKE OUR SALARY FOR TEACHERS WHO HAVE MORE EXPERIENCE, KIND OF PULL AWAY FROM THAT BASELINE, RIGHT? SO TO TO REALLY RECOGNIZE OUR TEACHERS THAT HAVE MORE EXPERIENCE AND ESPECIALLY THOSE TEACHERS THAT HAVE GOTTEN THEIR EXPERIENCE FROM FRISCO ISD.

THEY, IN GENERAL WILL MAKE MORE MONEY THAN A TEACHER WITH EQUIVALENT EXPERIENCE THAT'S COMING FROM OUTSIDE THE DISTRICT BECAUSE WE FEEL LIKE IT'S REALLY IMPORTANT TO RECOGNIZE AND REWARD RETENTION WITHIN THE DISTRICT WHICH IS AN ADDITIONAL INCENTIVE.

I'LL ADD ONE THING.

WITH THE BUDGET, OVER THE YEARS, WE'VE GAINED A LOT MORE SECONDARY STUDENTS THAN ELEMENTARY STUDENTS.

WHENEVER THAT HAPPENS, WHENEVER YOU'RE BUILDING SECONDARY BUILDINGS, HIGH SCHOOLS AND MIDDLE SCHOOLS, THEY'RE NOT REAL EFFICIENT WHEN YOU OPEN THEM BECAUSE YOU HAVE TO HAVE SO MANY PERSONNEL AND EVERYTHING ELSE TO OPEN THE BUILDING, AND YOU DON'T HAVE ALL THE KIDS IN THERE YET.

AS WE GO THROUGH THIS OVER THE NEXT COUPLE OF THREE YEARS, WHEN WE GET EMERSON FULL GOING, WHEN WE GET PANTHER CREEK FULL GOING, WE GET WILKINSON BUILT AND GOING.

THEN THOSE COSTS LEVEL OUT SOMEWHAT WHERE YOU'RE NOT ADDING A LARGE NUMBER OF PERSONNEL EVERY YEAR THAT'S COSTING YOU MILLIONS OF DOLLARS JUST TO GET THOSE SCHOOLS STARTED. SO THAT'S ALWAYS FIGURED INTO IT.

AS YEARS HAVE GONE BY, THAT'S BECOME MORE OF A FACTOR BECAUSE IT USED TO BE, WE'D BE OPENING THREE ELEMENTARY SCHOOLS IN THE MIDDLE SCHOOL A LOT OF TIMES.

[02:00:03]

BUT NOW AS WE GO ALONG, THE GROWTH OF THE SECONDARY STUDENTS HAS BEEN MUCH HIGHER THAN ELEMENTARY.

SO THE ADDITION OF SECONDARY SCHOOLS HAS BEEN FASTER, A LOT MORE OF THAT THAN WE'VE HAD IN RECENT YEARS.

YEAH, YOU'RE RIGHT. THAT'S A GOOD POINT, AND I ALSO WANT TO MENTION I DID NOT MENTION THIS A MINUTE AGO IN YOUR FOLDER AND ALSO LINKED ON THIS PAGE IS THE MULTIYEAR FINANCIAL PLAN, AND SO THIS IS KIND OF REALLY IMPORTANT FOR YOU GUYS TO LOOK AT IN TERMS OF THE SUSTAINABILITY OF THE BUDGET THAT WE'VE RECOMMENDED.

YOU CAN SEE THAT FINANCIAL PLAN ESSENTIALLY ROLLS FORWARD THE RAISES THAT WE'VE PROPOSED INTO NEXT YEAR.

IT KIND OF EARMARKS MONEY FOR FUTURE, RAISES IT EARMARKS MONEY FOR FUTURE STAFF TO OPEN THE NEW SCHOOLS THAT WE HAVE PLANNED TO OPEN, AND SO YOU CAN KIND OF JUST SEE HOW THOSE COSTS ESSENTIALLY SNOWBALL, AND SO THE FINANCIAL THE MULTIYEAR PLAN IS A REALLY GOOD TOOL FOR YOU GUYS TO LOOK OUT TO SEE THE SUSTAINABILITY OF SOME OF THOSE RECOMMENDATIONS AND DECISIONS THAT WE MAKE.

SO THAT KIND OF LEADS RIGHT INTO THE COMMENT I WANTED TO MAKE.

I MEAN, UNDERSTANDING THE NEED TO STAY COMPETITIVE TO STEPHANIE'S POINT, BUT I THINK THAT TAKING THIS DEFICIT BUDGET, WHICH IS A LARGER ONE THAN WE'VE EVER ADOPTED, AT LEAST IN THE TIME THAT I'VE BEEN ON THE BOARD, I THINK, IN MY OPINION, MARCHES US RIGHT TO THE EDGE OF OUR COMFORT ZONE.

YES. BUT REITERATING A POINT THAT I SAID A LITTLE WHILE EARLIER, IF WE GET REPRIEVE FROM THE LEGISLATURE IN THE NEXT SESSION AND LIKE WE'VE DONE MANY TIMES BEFORE WITH SOURCES OF FUNDS THAT HAVE ONCE THEY REALIZED THAT WE DIDN'T SPEND BEFORE THEY WERE REALIZED, WE CAN COME BACK AND DO SOMETHING DIFFERENT IF WE IF WE NEED TO.

ABSOLUTELY. BUT THAT MULTIYEAR FINANCIAL PLAN IS IS KEY TO JUST KIND OF SEE HOW THIS COMPOUNDS, AND IF WE DON'T GET HELP, HOW WE'RE GOING TO HAVE TO BACKTRACK ON SOME THINGS OR OF COURSE CORRECT.

YEAH, YOU'RE RIGHT. THIS DOES PUSH US REALLY RIGHT TO THE EDGE OF OUR COMFORT ZONE IN TERMS OF A DEFICIT.

I DON'T KNOW IF THE SCHOOL DISTRICT HAS EVER ADOPTED A DEFICIT BUDGET, TO BE HONEST WITH YOU.

I MEAN, NOT SINCE I'VE BEEN HERE.

I DON'T KNOW ABOUT PRE-ME, BUT ONE OF THE THINGS--I JUST TOTALLY LOST MY TRAIN OF THOUGHT.

IT'LL COME BACK TO ME. IT WAS REALLY GOOD.

I HAD A REALLY GOOD THOUGHT IN MY HEAD.

GO AHEAD. I CAN'T WAIT TO HEAR WHAT THAT'S GOING TO BE, AND YOU'VE ONLY BEEN TALKING FOR TWO STRAIGHT HOURS, SO IT'S REASONABLE THAT YOU LOST ONE TRAIN OF THOUGHT.

NOT BEING ENOUGH. WE WANT TO STAY COMPETITIVE, AND IT'S BALANCING THAT WITH THE LONGEVITY OF THE DECISIONS WE'RE MAKING TODAY.

WE NEVER WANT TO PUT THE DISTRICT IN A FINANCIAL POSITION OR ANY OTHER BOARDS IN A POSITION GOING FORWARD TO HAVE TO MAKE REALLY UNFORTUNATE DECISIONS.

WE'RE A FIXED COST INDUSTRY AND THE MONEY WE HAVE IS THE MONEY WE HAVE, AND SO I DO AGREE, YOU KNOW, I WOULD LOVE FOR US TO BE ABLE TO DO MORE, BUT I THINK WHAT YOU'VE BEEN ABLE TO DO WITH WHERE THE BUDGET STARTED AND WHERE IT'S EVOLVED TO IS NIGHT AND DAY, AND SO I THINK THAT THE AMOUNT OF FUNDING AND CERTAINLY THE ESSER FUNDS HELP THAT THOSE ARE GOING AWAY.

SO WE CAN COUNT ON THOSE FOR ONE YEAR AND HOPE THAT THE LEGISLATURE IN THE 80TH SESSION DOES SOME MAGIC AND THAT WE SEE MORE FUNDING COME IN THAT WE'RE NOT EXPECTING, AND I THINK EVERY DISTRICT IS SITTING IN THE SAME SPOT THAT WE ARE RIGHT NOW HOPEFUL FOR THAT BECAUSE THERE'S A LOT OF EXTRA MONEY AT THE STATE LEVEL AND WE'RE HOPEFUL THAT THAT WILL MAKE ITS WAY. SOME OF THAT WILL MAKE ITS WAY TO PUBLIC EDUCATION AND WE'LL BE ABLE TO DO A LITTLE BIT MORE BALANCING IN FUTURE BUDGETS BUT I AGREE; I WISH WE COULD DO MORE.

I DO REMEMBER WHAT I WAS GOING TO SAY NOW.

I WAS GOING TO SAY, FOR THOSE OF YOU THAT HAVE BEEN ON THE BOARD FOR A WHILE, IF YOU REMEMBER, WE USED TO LOOK AT OUR OUR MULTIYEAR FINANCIAL PLAN AND WE USED TO NOT LET IT GO DEFICIT TWO YEARS OUT.

RIGHT, WE WOULDN'T BUDGET ANYTHING THAT WE DIDN'T KNOW FOR SURE WE COULD SUSTAIN TWO YEARS FROM NOW, AND SO NOW FOR US TO HAVE A DEFICIT BUDGET, TO ADOPT A DEFICIT BUDGET THAT THEN COMPOUNDS INTO A GREATER DEFICIT YEAR AFTER YEAR IS DEFINITELY MORE BOLD, I THINK IS A GREAT WORD THAT YOU USED THEN WHAT WE HAVE DONE IN THE PAST. THAT'S ALL I'VE GOT.

THANK YOU, AND BOARD BECAUSE WE WILL BE TAKING ACTION ON THIS AT OUR JUNE 20TH MEETING, ANY QUESTIONS THAT YOU HAVE OR CONCERNS THAT YOU HAVE, IF YOU'D REACH OUT TO KIM DIRECTLY AND NOT DISCUSS IN A GROUP, TEXT OR EMAIL, BECAUSE WE ARE GOING TO BE TAKING ACTION.

WE NEED TO AVOID ANY TYPE OF DELIBERATION ON THIS AS A TEAM.

SO JUST REACH OUT TO HER DIRECTLY IF YOU HAVE ANY QUESTIONS.

THANK YOU. SO ONE FINAL THING.

ONE OF THE MEMBERS OF THE IST IS LEAVING US THROUGH RETIREMENT.

[02:05:03]

I THINK THIS IS PERHAPS HIS LAST MEETING WITH US.

IT COULD BE HIS LAST MEETING WITH US.

KENNY, WE JUST WANTED TO RECOGNIZE YOU FOR YOUR SERVICE TO FRISCO ISD.

I CAME HERE NOT LONG AFTER KENNY, AND WE HAVE HAD A LOT OF EXPERIENCES TOGETHER.

THERE WAS A TIME WHEN HE WAS MY BOSS AND I'VE BEEN HIS BOSS AND WE'VE BEEN COLLEAGUES AND WE'VE BEEN ALL KINDS OF THINGS, AND I CAN'T EXPRESS ENOUGH PERSONALLY WHAT IT'S MEANT TO WORK WITH YOU DOWN THROUGH THE YEARS AND THE CONTRIBUTIONS YOU'VE MADE TO THIS DISTRICT AND ALWAYS OF THE MINDSET THAT YOU WERE TRYING TO DO WHAT'S RIGHT FOR THE STUDENTS IN OUR SCHOOL DISTRICT.

WE ARE GOING TO MISS YOU.

YOU'LL BE SORELY MISSED, LET ME PUT IT THAT WAY, AND WE ARE GOING TO CELEBRATE YOUR ILLUSTRIOUS CAREER NEXT WEEK, I THINK WITH A WITH A RECEPTION IT'S JUNE 7TH, IS THAT CORRECT? SOMETIME DURING THE DAY.

THAT'S WHAT YOU'VE BEEN TOLD. HIS ASSISTANT TOLD HIM THAT'S WHAT WE WERE GOING TO DO.

SO THAT'S WHAT WE'RE GOING TO DO, BUT WE ALL WANT TO THANK YOU, AND I DON'T KNOW IF ANYBODY ELSE WANTS TO TO CHIME IN, BUT WE'VE ALL BEEN TOUCHED BY YOU AND YOUR SERVICE AND YOU'VE BEEN A GREAT EXAMPLE TO US AND YOU'VE GOT BIG SHOES TO FILL.

SO THANK YOU FOR EVERYTHING YOU'VE DONE AND THANK YOU FOR THE COLLEAGUE AND THE FRIEND YOU'VE BEEN TO ME.

I APPRECIATE IT. THANK YOU VERY MUCH.

IT'S BEEN AN HONOR TO BE HERE FOR 22 YEARS AND TO SERVE.

IT'S BEEN A GREAT DEAL WHENEVER YOU GET TO STAY WHERE YOU WANT TO STAY.

WE MOVED HERE IN 2000 WITH ONE OF THE BIGGEST DRAWS FOR US WAS TO BRING OUR DAUGHTER TO THIS DISTRICT AT THAT TIME AND WE'VE NEVER REGRETTED IT A MINUTE, AND IT'S BEEN WONDERFUL.

THE THING THAT HAS BEEN THE BEST IS THE PEOPLE TO SERVE WITH.

TO BE PERFECTLY HONEST, IF PEOPLE THAT KNOW ME, IF IT WAS JUST ABOUT ME, YOU WOULDN'T FIND ME AT A RECEPTION FOR , BUT I HAVE A LOT OF PEOPLE TO THANK AND SAY THANK YOU TO.

THIS GROUP THAT I WORK WITH ALL THE TIME, BOARD MEMBERS THAT HAVE BEEN HERE FOR FOR QUITE A WHILE NOW.

WE'VE DONE A LOT OF GOOD THINGS, AND I THINK IF YOU WENT BACK AND LOOKED OVER TIME, THE PEOPLE THAT I GET TO WORK WITH AND EVERYTHING GOES OVERTIME, THERE'S BEEN A LOT OF GREAT THINGS HAPPEN IN THIS DISTRICT.

THERE MAY BE MORE IN SOME DISTRICT SOMEWHERE.

I JUST DON'T KNOW WHERE IT WOULD BE, WHERE THERE ARE MORE DEDICATED PEOPLE TO BE YOUR COLLEAGUE AND TO WORK WITH.

SO THANK YOU VERY MUCH.

IT'S BEEN AN HONOR. THANK YOU, KENNY.

WELL, BOARD IT IS 8:13 AND WE HAVE BEEN HERE FOR SEVEN DAYS [CHUCKLING] AND WE HAVE LEARNED SO MUCH.

WE ARE APPRECIATIVE OF THE EXPERTISE OF EVERYONE FROM SAFETY AND SECURITY TO COUNSELING TO TEACHING AND LEARNING, TO BUSINESS AND FINANCE TO HR, EVERY SINGLE DEPARTMENT CAME TOGETHER TODAY TO PROVIDE US, AS WELL AS THE COMMUNITY, AN INCREDIBLE OVERVIEW AND DEEP DOVE INTO WHAT MAKES FRISCO ISD SO INCREDIBLY SPECIAL.

WE ARE ALL BLESSED TO BE A PART OF IT AND WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.