[00:00:06]
GOOD AFTERNOON. IT'S 1:04 P.M, AND I CALL TO ORDER A WORKSHOP FOR THE FRISCO ISD BOARD OF TRUSTEES.
[1. Discussion regarding Budget and Strategic Planning for 2023-2024]
WE DO HAVE MS. ELAD ON ZOOM, SO SHE SHOULD BE UP ON THE SCREEN, AND THEN WE DO HAVE QUORUM WITH FIVE TRUSTEES PRESENT.THANK YOU ALL FOR YOUR FLEXIBILITY.
I KNOW THIS IS OUR IT'S TAKEN A WHILE FOR US TO GET THIS ON THE BOOKS, BUT WE APPRECIATE YOUR PATIENCE AND YOUR FLEXIBILITY, AND WITH THAT, OUR FIRST AND ONLY ITEM ON THE AGENDA IS DISCUSSION ON OUR BUDGET.
OKAY, SO I WANT TO START OFF BY SAYING WE HAVE A REALLY LONG AFTERNOON PLANNED FOR YOU ALL, BUT THE SECOND HALF OF THE DAY WILL BE FOCUSED ON STRATEGIC PLANNING AND WE'VE GOT SOME ACTIVITIES TO MAKE IT KIND OF FUN.
AS TRUSTEES, YOU GUYS KNOW THAT THE THREE MAIN THINGS THAT YOU GUYS WERE ELECTED TO DO ARE TO SET THE DIRECTION OF THE DISTRICT, ADOPT A BUDGET AND HIRE A SUPERINTENDENT, AND SO TODAY, OVER THE TWO WORKSHOPS THAT WE HAVE PLANNED, WE'RE GOING TO COVER TWO OF THOSE THREE THINGS.
BEFORE WE JUMP INTO THE BUDGET WORKSHOP, WHICH IS GOING TO BE OUR FIRST PART OF THE WORKSHOP.
SO IN YOUR BLUE FOLDER ON THE LEFT SIDE OF THE FOLDER, YOU HAVE SORT OF THE FORMAL DOCUMENTS.
SO YOU HAVE THE 23-24 PROPOSED BUDGET.
THIS WILL BE THE DOCUMENT THAT COME JUNE 20TH WHEN WE HAVE THE SPECIAL MEETING TO ADOPT THE BUDGET.
THAT'S THE DOCUMENT THAT YOU'LL BE ADOPTING.
BEHIND THAT, YOU HAVE THE PROPOSED COMPENSATION PLAN, WHICH IS ALSO A DOCUMENT THAT YOU'LL BE ADOPTING ON JUNE 20TH, AND THEN THE NOTICE OF PUBLIC HEARING, WHICH WILL TAKE PLACE ON JUNE 12TH.
THE NEXT PACKET IS CAMPUS AND CENTRAL DEPARTMENT BUDGETS.
SO THIS IS SOMETHING THAT WILL BE PART OF OUR BUDGET BOOK WHEN WE PUBLISH IT, BUT IT GIVES YOU THE INDIVIDUAL BUDGETS FOR EACH CENTRAL DEPARTMENT AND EACH CAMPUS AS IT'S PROPOSED RIGHT NOW AND THEN THE LAST PIECE IS THE 2021-2022 FINANCIAL BENCHMARKING, AND I HAVE SLIDES THAT WILL GO THROUGH THAT AS WELL, BUT IF YOU WANT TO LOOK AT ANY OF THAT INFORMATION IN MORE DETAIL THAN WHAT THE SLIDES SHOW, YOU CAN LOOK AT THAT AND I'LL BE HAPPY TO ANSWER QUESTIONS.
I'M GOING TO JUMP INTO THE BUDGET WORKSHOP.
WE'RE GOING TO START OFF WITH SCHOOL FINANCE 101, JUST FOR THOSE OF YOU THAT HAVEN'T BEEN AROUND LONG OR HAVEN'T HEARD ME PRESENT THIS A HUNDRED DIFFERENT TIMES.
SO MONEY FROM MONEY FOR TEXAS PUBLIC SCHOOLS COMES FROM FOUR MAIN SOURCES PROPERTY TAXES, STATE AID, FEDERAL FUNDS, AND THEN MISCELLANEOUS LOCAL REVENUE. IN FRISCO ISD, THE MAJORITY OF OUR REVENUE COMES FROM BOTH PROPERTY TAXES AND STATE FUNDS, PROPERTY TAXES BEING THE MAIN SOURCE.
FUND ACCOUNTING IS A SYSTEM OF ACCOUNTING THAT'S USED BY GOVERNMENTS AND OTHER NON-PROFITS TO TRACK THE USAGE OF CASH ASSIGNED TO DIFFERENT PURPOSES, MEANING WHATEVER WE RECEIVE THE REVENUE FOR, WE NEED TO PAY IT OUT FOR THAT PURPOSE AND WE ACCOUNT FOR EACH ONE OF THOSE REVENUE STREAMS AND EXPENSE STREAMS IN DIFFERENT FUNDS TO SEPARATE THE PURPOSES OF THE DIFFERENT THINGS THAT WE'RE RECEIVING MONEY FOR.
SO WE HAVE FOUR MAJOR FUNDS IN FRISCO ISD.
THE FIRST ONE AND THE BIGGEST ONE IS THE GENERAL FUND.
THE GENERAL FUND PAYS FOR DAY TO DAY OPERATIONS OF THE DISTRICT, EMPLOYEE SALARIES, EDUCATIONAL RESOURCES, CLASSROOM SUPPLIES, UTILITIES, INSURANCE, BUSSING, MAINTENANCE, ALL THE THINGS THAT YOU WOULD THINK OF TO RUN A DISTRICT FROM DAY TO DAY ARE ACCOUNTED FOR IN THE GENERAL FUND, AND THE REST OF THE SCHOOL FINANCE PRESENTATION IS FOCUSED ON THE GENERAL FUND SPECIFICALLY.
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THE NEXT FUND IS THE DEBT SERVICE FUND.THE THIRD FUND IS THE CAPITAL PROJECTS FUND.
THIS IS THE FUND THAT WE DEPOSIT BOND PROCEEDS.
WHEN WE GO OUT AND SELL BONDS, WE DEPOSIT THOSE PROCEEDS INTO THE CAPITAL PROJECTS FUND, AND THEN THAT FUND IS USED TO CONSTRUCT NEW BUILDINGS, RENOVATE OLD BUILDINGS, REFRESH EQUIPMENT, TECHNOLOGY AND INFRASTRUCTURE THROUGHOUT THE DISTRICT, AND THEN THE LAST AND FINAL GROUP OF FUNDS ARE OUR SPECIAL REVENUE FUNDS.
THESE ARE INDIVIDUAL FUNDS, MOSTLY FEDERAL AND STATE GRANTS, SOME OTHER LOCAL MISCELLANEOUS FUNDS THAT ARE USED TO PROVIDE SUPPLEMENTAL EDUCATIONAL PROGRAMS FOR STUDENTS. OUR CHILD NUTRITION FUND, WHICH RUNS ALL OF OUR SCHOOL CAFETERIAS, IS ALSO A SPECIAL REVENUE FUND.
SO LIKE I MENTIONED, WE'RE GOING TO FOCUS THIS PRESENTATION ON THE GENERAL FUND SPECIFICALLY, AND CHAPTERS 46 AND 48 OF THE TEXAS EDUCATION CODE SET IN STATUTE, HOW WE RECEIVE OUR MONEY IN THE GENERAL FUND.
SO THOSE ARE THE THREE BIG THINGS THAT GO INTO THE FUNDING FORMULA FOR SCHOOL DISTRICTS.
SO YOU CAN THINK OF THE SCHOOL FUNDING FORMULA LIKE A CUP THAT NEEDS TO BE FILLED UP TO THE TOP.
SO THE SIZE OF THE CUP IS EQUAL TO THE DISTRICT'S FORMULA ENTITLEMENT, WHICH IS AN ENTITLEMENT THAT IS BASED ON EACH STUDENT ENROLLED IN THE DISTRICT AND WEIGHTED TO ACCOUNT FOR ATTENDANCE AND THE COST OF EACH STUDENT'S INDIVIDUAL EDUCATIONAL NEEDS.
SO INDIVIDUAL EDUCATIONAL NEEDS MEANS WHATEVER SETTING THAT STUDENT IS BEING SERVED IN, SOME SETTINGS ARE MORE EXPENSIVE THAN OTHER INSTRUCTIONAL SETTINGS, AND SO THEY'RE WEIGHTED BASED ON WEIGHT SET BY THE TEXAS LEGISLATURE.
SO LIKE I SAID, THAT CUP, THE SIZE OF THAT CUP REPRESENTS HOW MUCH MONEY WE CAN GET, AND AS THE NUMBER OF STUDENTS IN THE DISTRICT GROWS AND AS THEIR INSTRUCTIONAL SETTINGS CHANGE, THAT CUP MAY GET BIGGER OR IT MAY GET SMALLER.
FILLING THAT CUP IS A SHARED RESPONSIBILITY BETWEEN LOCAL PROPERTY TAXPAYERS AND THE STATE OF TEXAS.
THE FORMULA REQUIRES DISTRICTS TO FILL UP OUR PART OF THE CUP FIRST WITH TAX REVENUE.
IF OUR TAX COLLECTIONS WERE TO EXCEED OUR ENTITLEMENT, MEANING IF THE CUP OVERFLOWED WHEN WE FILLED IT UP WITH TAX REVENUE, WE WOULD HAVE TO PAY BACK IN RECAPTURE WHATEVER WE COLLECTED IN EXCESS.
SO DISTRICTS THAT ARE PROPERTY WEALTHY LIKE FRISCO ISD, SORRY, MY CUP DIDN'T FILL UP.
THERE WE GO, LOOK. [CHUCKLING] SO PROPERTY-WEALTHY DISTRICTS LIKE FRISCO ISD WILL RECEIVE A MUCH SMALLER SHARE OF STATE AID THAN OTHER PROPERTY-POOR DISTRICTS.
IT'S THE AMOUNT OF PROPERTY VALUE THAT WE HAVE WITHIN THE DISTRICT AND SO FRISCO ISD HAS AN ABUNDANCE OF PROPERTY VALUE WITHIN OUR DISTRICT BORDERS, AND THAT MAKES US A PROPERTY-WEALTHY DISTRICT SO OUR TAXPAYERS WILL FOOT A LARGER PORTION OF THE BILL FOR EDUCATIONAL PURPOSES THAN THE STATE WILL.
OTHER AREAS OF THE DISTRICT, THE STATE WILL PAY A LARGER PORTION.
SO IT'S REALLY A BALANCING ACT, THE SCHOOL FUNDING FORMULA.
IT'S AN EQUALIZED SYSTEM SO THAT WHEN PROPERTY VALUES RISE, STATE FUNDING FALLS.
IF PROPERTY VALUES WERE TO FALL, STATE FUNDING WOULD RISE.
PROPERTY VALUES IN TEXAS DON'T FALL VERY OFTEN, AT LEAST IN THIS AREA.
WHAT'S MORE LIKELY TO HAPPEN IS FOR THE STATE TO COME IN AND PROVIDE PROPERTY TAX RELIEF THROUGH AN INCREASE IN THE HOMESTEAD EXEMPTION OR REDUCTION IN TAX RATES , AND BECAUSE THEN PROPERTY TAX BILLS WOULD BE SMALLER, THE STATE WOULD HAVE TO KICK IN SOME ADDITIONAL MONEY, AND SO THE STATE FUNDING PORTION WOULD GO UP.
[00:10:05]
SO HOW MUCH WE COLLECT OUR COLLECTION RATE IS NOT TAKEN INTO CONSIDERATION.SO IN ORDER TO RECEIVE THE MAXIMUM AMOUNT OF MONEY UNDER THE STATE'S FORMULA, WE HAVE TO ONE, SET THE TAX RATE AT THE RATE EQUAL TO WHAT THE STATE SAYS WE HAVE TO SET IT AT, AND TWO, WE NEED TO ATTEMPT TO COLLECT 100% OF OUR TAXES.
SO SPEAKING OF PROPERTY TAXES, I THINK WE ALL KNOW WHAT PROPERTY TAXES ARE, RIGHT; THEY'RE, LOCALLY ASSESSED ON PROPERTY OWNED WITHIN THE BOUNDARIES OF THE TAXING UNIT--IN THIS CASE FRISCO ISD AND EVERYONE OWNING PROPERTY PAYS PROPERTY TAXES TO THE SCHOOL DISTRICT, INCLUDING BOTH HOMEOWNERS AND BUSINESS OWNERS.
WE ARE FORTUNATE IN FRISCO ISD TO HAVE A GOOD MIX OF HOMEOWNERS AND BUSINESS OWNERS THAT ARE PAYING TAXES, AND WE DON'T HAVE ANY ONE LARGE PROPERTY TAX PAYER THAT COULD MAKE OR BREAK OUR ABILITY TO COLLECT REVENUE.
SO THIS IS KIND OF A SYSTEM OF CHECKS AND BALANCES BECAUSE YOU WANT TO MAKE SURE THAT THE GROUP OF PEOPLE APPRAISING VALUES IS NOT THE SAME GROUP OF PEOPLE SETTING THE TAX RATE, AND SO WE HAVE COUNTY APPRAISAL DISTRICTS, BOTH THE DENTON COUNTY APPRAISAL DISTRICT AND THE COLLIN COUNTY APPRAISAL DISTRICT THAT ARE RESPONSIBLE FOR VALUING THE PROPERTY WITHIN OUR BOUNDARIES, AND THEN THE SCHOOL BOARD IS THE ONE RESPONSIBLE FOR SETTING THE TAX RATE.
THAT HEARING RIGHT NOW IS SCHEDULED FOR JUNE 12TH.
WE HAVE TO GET FINAL PROPERTY VALUES FROM OUR APPRAISAL DISTRICTS, WHICH HAPPENS IN JULY , AND THEN TEA HAS TO TELL US WHAT OUR BASICALLY MINIMUM TAX RATE, THEY CALL IT THE MAXIMUM COMPRESSED RATE, BUT IT'S THE MINIMUM TAX RATE THAT WE CAN SET IN ORDER TO GENERATE ALL OF OUR FUNDING.
SO THAT HAPPENS THE FIRST WEEK OR SO IN AUGUST, AND THEN DEPENDING ON HOW MUCH THAT CHANGES FROM THE NOTICE THAT WE'VE PUBLISHED NOW FOR THE HEARING ON THE 12TH, WE MAY PUBLISH ANOTHER NOTICE FOR A SECOND PUBLIC HEARING AND THEN YOU GUYS WILL VOTE TO ADOPT THE TAX RATE IN AUGUST OR SEPTEMBER, DEPENDING ON TIMING.
THEY'RE USUALLY MAILED IN OCTOBER AND THEN PAYMENT IS DUE BY JANUARY 31ST.
SO IN 2019, MANY OF YOU MAY REMEMBER THAT THE LEGISLATURE PASSED HOUSE BILL THREE, WHICH REQUIRED SCHOOL DISTRICTS TO LOWER OUR TAX RATES WHEN PROPERTY VALUES RISE, THEREBY LIMITING THE BURDEN OF SCHOOL FUNDING ON HOMEOWNERS, AND SO OUR TAX RATE NOW DECREASES EVERY YEAR AS PROPERTY VALUES GROW. ONE OF THE THINGS I THINK IT'S IMPORTANT TO MENTION IS WHILE THE TAX RATE MAY DECREASE A HOMEOWNER'S ACTUAL PROPERTY BILL, PROPERTY TAX BILL MAY NOT, BECAUSE THERE ARE SOME PARAMETERS BY HOW MUCH OUR TAX RATE CAN DECREASE.
SO IN SOME CASES, BILLS MAY GO UP EVEN THOUGH TAX RATES ARE GOING DOWN.
WE DON'T HAVE A CHOICE THERE, AND THEN OUR NO TAX RATE.
THE PIECE THAT WE'RE TALKING ABOUT NOW IS DEPENDENT UPON WHAT TEA TELLS US IT NEEDS TO BE, PLUS SOME DISCRETIONARY PENNIES THAT WE HAVE, WHICH WE'LL TALK ABOUT A LITTLE BIT LATER, BUT WE DO HAVE VERY LITTLE LOCAL CONTROL OVER SETTING THE TAX RATE.
SO GOING BACK TO THE FUNDING FORMULA, NOW THAT WE KIND OF UNDERSTAND HOW TAX RATES PLAY A PART, THE FORMULA ENTITLEMENT IS THE PIECE THAT KIND OF CAN GET COMPLICATED QUICKLY.
SO IT'S DIVIDED INTO TWO TIERS.
TIER ONE IS THE LARGEST PORTION OF THAT TAX RATE.
IN ORDER FOR US TO SEE TO RECEIVE ALL OF OUR TIER ONE FUNDING.
IF WE WERE TO ADOPT A RATE LOWER THAN THAT, WE WOULD NOT RECEIVE ALL OF OUR TIER ONE ENTITLEMENT.
TIER ONE IS MADE UP OF 21 INDIVIDUAL PROGRAM ALLOTMENTS.
[00:15:01]
$6,160, AND THAT WILL GIVE YOU OUR TIER ONE FUNDING.THAT BASIC ALLOTMENT HAS NOT CHANGED SINCE 2019.
WE NEED TO PROVIDE A BASIC EDUCATION FOR EACH STUDENT EACH YEAR.
SO THAT'S THE TIER ONE PORTION OF THE FORMULA.
TIER TWO IS A LITTLE BIT MORE COMPLICATED AND IT'S BASED ON OUR TAX RATE SPECIFICALLY.
THAT'S CALLED THE ENRICHMENT TAX RATE, AND THAT ENRICHMENT TAX RATE DRIVES OUR TIER TWO FUNDING.
IT'S DIVIDED INTO TWO LEVELS THE GOLDEN PENNY TIER AND THE COPPER PENNY TIER.
SO THE GOLDEN PENNY LEVEL CAN BE OUR GOLDEN PENNIES ARE THE FIRST $0.08 OF OUR ENRICHMENT TAX.
SO $0.08 PER $100 OF PROPERTY VALUE.
WE RECEIVE ADDITIONAL STATE AID FOR EACH GOLDEN PENNY IN OUR TAX RATE.
THIS YEAR, I CALCULATED WE WILL RECEIVE ABOUT $50 EXTRA PER WADA FOR EACH GOLDEN PENNY OVER AND ABOVE THE WHAT WE CAN GENERATE THROUGH PROPERTY TAXES. SO THAT'S THE AMOUNT OF STATE AID THAT WE'RE RECEIVING.
THE COPPER PENNY TIER REPRESENTS ALL THE OTHER PENNIES THAT ARE IN OUR TAX RATE, WHICH HAVE BEEN VOTER APPROVED LOCALLY OUTSIDE OF THE COMPRESSED RATE WHICH TEA SETS AND THE GOLDEN PENNY RATE.
WE HAVE CURRENTLY 5.83 COPPER PENNIES IN OUR TAX RATE.
WE CAN HAVE UP TO NINE AT A MAXIMUM.
WE ONLY GET TO KEEP ABOUT TWO THIRDS OF THE MONEY WE GENERATE FROM COPPER PENNIES.
THAT'S WHY THEY'RE CALLED COPPER, BECAUSE THEY'RE WORTH LESS.
SO WE STILL GET TO GENERATE REVENUE OFF OF THEM.
WE JUST DON'T GET TO KEEP AS MUCH BECAUSE WE'RE PROPERTY WEALTHY.
SO WE PAY THE REMAINING ONE THIRD OF THAT REVENUE BACK IN RECAPTURE.
SO AT EVERY LEVEL WITHIN THIS FORMULA, BOTH IN TIER ONE AND THEN IN TIER TWO AT THE COPPER PENNY LEVEL, WE CAN GENERATE ENOUGH PROPERTY TAX REVENUE TO HAVE TO PAY RECAPTURE.
FRISCO ISD HAS PAID TIER TWO RECAPTURE FOR A NUMBER OF YEARS.
WE HAVE NOT YET PAID TIER ONE RECAPTURE, BUT WE EXPECT THAT WE WILL NEXT YEAR WITHOUT ANY CHANGES TO THE FORMULA, WHICH I'LL TALK ABOUT HERE IN A MINUTE WHEN WE TALK ABOUT THE LEGISLATIVE SESSION.
SO WE EXPECT TO BE A TIER ONE RECAPTURE DISTRICT FOR THE FIRST TIME IN 2023-24.
THAT IS A MUCH LARGER PORTION OR THAT'S A MUCH LARGER DOLLAR AMOUNT FOR RECAPTURE THAN WE'VE HAD TO PAY IN THE PAST, AND SOME OF OUR NEIGHBORS THAT WE LOOK AT THAT ARE PAYING HUNDREDS OF MILLIONS OF DOLLARS IN RECAPTURE A YEAR.
THAT'S SORT OF WHERE WE'RE HEADED WHEN WE START PAYING TIER ONE RECAPTURE.
SO THE FORMULA ENTITLEMENT MAKES UP THE MAJORITY OF REVENUE THAT WE RECEIVE TO PAY OUR BILLS.
SO IT ACCOUNTS FOR 88% OF THE REVENUE IN OUR GENERAL FUND.
THE WAY THAT THIS FORMULA ENTITLEMENT IS SET UP, IT KEEPS US ESSENTIALLY ON A FIXED INCOME.
WHEN THINGS LIKE INFLATION HAPPEN.
IT'S $6,160 IS THE BASIC ALLOTMENT, AND SO IT KEEPS US ON A FIXED INCOME WHEN WE HAVE INCREASED COSTS, UNLESS ONE OF A FEW THINGS HAPPEN, WE DON'T GET EXTRA MONEY TO PAY FOR THOSE INCREASED COSTS.
SO HERE ARE THE FEW THINGS THAT CAN HAPPEN TO INCREASE FUNDING FOR TEXAS PUBLIC SCHOOLS.
SO FIRST, WE CAN INCREASE IN ENROLLMENT.
SO ENROLLMENT GROWTH WILL INCREASE OUR WADA, WHICH WILL THEN MAKE OUR CUP LARGER, RIGHT, AND SO THAT WILL GENERATE MORE REVENUE, BUT IF WE ADD STUDENTS, WE ALSO HAVE ADDED COSTS IN ORDER TO SERVE THOSE STUDENTS.
THE SECOND WAY WE CAN INCREASE REVENUE IS TO INCREASE OUR TAX RATE.
WE'VE TAKEN ADVANTAGE OF 5.83 OF THOSE.
SO WE HAVE 3.1 $0.07 PER $100 OF PROPERTY VALUE THAT WE COULD ADD TO OUR TAX RATE IF WE CHOSE TO.
IF WE DID THAT, WE WOULD HAVE TO GO OUT TO VOTERS IN FRISCO ISD TO APPROVE THAT HIGHER TAX RATE.
WE WOULD HAVE TO HAVE WHAT'S CALLED A VATRE.
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ADDITIONAL REVENUE.WE ALL KNOW THE STATE MEETS EVERY THE LEGISLATURE MEETS EVERY TWO YEARS.
WE WOULD HAVE NEEDED AN ADDITIONAL $1,000 IN THE BASIC ALLOTMENT JUST TO COVER INFLATIONARY COSTS.
I WILL GET BACK TO THAT IN JUST A MINUTE, BUT THAT IS THE QUICK VERSION OF SCHOOL FINANCE.
DOES ANYONE HAVE ANY QUESTIONS BEFORE I MOVE ON TO THE ACTUAL BUDGET? ANY QUESTIONS FROM ANYONE? STEPHANIE, ANY QUESTIONS? OKAY. OKAY, GREAT.
ALL RIGHT. SO LET'S GET INTO NEXT YEAR'S BUDGET.
LET ME MOVE THIS OUT OF THE WAY.
SO IN THE LAST DECADE, WE HAVE GONE FROM 42,707 STUDENTS TO 66,789 STUDENTS.
SO THAT REPRESENTS A 45% INCREASE IN OUR STUDENT POPULATION, AND I GRAPHED IT OUT ON HERE.
YOU CAN SEE BACK IN 2014 WHEN OUR ENROLLMENT FOR ELEMENTARY STUDENTS SORT OF ENROLLMENT GROWTH FOR ELEMENTARY STUDENTS SORT OF FLATTENED OUT , AND REALLY THE GROWTH THAT WE'VE EXPERIENCED SINCE THEN HAS BEEN AT THE SECONDARY LEVEL.
YOU CAN ALSO SEE A LITTLE BIT OF A DIP IN ELEMENTARY ENROLLMENT IN 2020 THAT WAS DUE TO COVID.
SO WE'RE GROWING BY FEWER STUDENTS EACH YEAR THAN WE HAD BEEN IN THE PAST, BUT THAT'S NOT THE SAME THING AS DECLINING ENROLLMENT.
OUR GROWTH IS NOT DECLINING, IT'S JUST SLOWING DOWN.
SO WE CONTINUE TO HAVE BETWEEN 3800 AND 4000 NEW KINDERGARTNERS ENTER FRISCO ISD EVERY YEAR, AND THOSE KINDERGARTNERS WILL WORK THEIR WAY UP THROUGH THE SYSTEM.
SO I JUST WANTED TO POINT OUT THAT DISTINCTION.
SO THESE ARE OUR ENROLLMENT PROJECTIONS THAT WE ARE USING FOR BUDGET PURPOSES.
WE PROJECT ENROLLMENT AS OF THE OCTOBER SNAP SNAPSHOT DATE.
SO THAT'S THE LAST FRIDAY IN OCTOBER, AND FOR BUDGET PURPOSES TO BE CONSERVATIVE.
WE DON'T PROJECT REVENUE BASED ON GROWTH THAT HAPPENS BEYOND OCTOBER.
TYPICALLY IN FRISCO ISD, WE DO EXPERIENCE FAIRLY SIGNIFICANT GROWTH BETWEEN OCTOBER AND THE END OF THE SCHOOL YEAR, AND WE DO ACCOUNT FOR THAT REVENUE IN OUR ACTUAL REVENUE COLLECTIONS, BUT WE DON'T PROJECT THAT REVENUE WHEN WE DO THE BUDGET JUST TO MAKE SURE THAT WE'RE BEING CONSERVATIVE.
SO OCTOBER 2022 ENROLLMENT WAS 66,789 STUDENTS.
FOR 23-24, WE'RE PROJECTING 67,757 STUDENTS, AND YOU CAN SEE THE BREAKDOWN HERE BETWEEN ELEMENTARY.
I DIDN'T PUT A KEY ON HERE, DID I? NOPE. ELEMENTARY, MIDDLE AND HIGH SCHOOL STUDENTS IS WHAT THIS IS.
WE USE A THIRD PARTY DEMOGRAPHER CALLED PASA TO PROVIDE US WITH ENROLLMENT PROJECTIONS EVERY YEAR.
YOU GUYS GET THAT WORKSHOP IN USUALLY OCTOBER.
THIS IS PASA'S MODERATE ENROLLMENT GROWTH PROJECTIONS.
SO PRIOR TO COVID, WE USED TO USE THEIR MODERATE GROWTH PROJECTIONS.
SO WE GOT MORE CONSERVATIVE WITH OUR ESTIMATES.
WE STARTED USING THEIR LOW GROWTH PROJECTIONS.
THEY CAME BACK IN THIS PAST FALL AND.
REVAMPED THEIR PROJECTIONS BASED ON NOW WHAT WE KNOW POST-COVID, AND WE FEEL CONFIDENT AGAIN IN USING THE MODERATE GROWTH PROJECTIONS. THEY SEEM REASONABLE BASED ON WHAT WE'VE EXPERIENCED THE PAST COUPLE OF YEARS.
SO OUR CAPITAL PLAN IS ALSO REALLY IMPORTANT WHEN IT COMES TO THE OPERATING BUDGET, BECAUSE AS WE OPEN NEW SCHOOLS, WE HAVE TO PLAN FOR THE COSTS, THE ONGOING MAINTENANCE AND OPERATING COSTS TO OPEN AND RUN THOSE SCHOOLS.
I WANTED TO JUST MENTION WE HAVE TWO SCHOOLS SET TO OPEN IN THE FALL.
WORTHAM AND WILKINSON IN THE FALL OF 2024.
[00:25:07]
WE DON'T HAVE ANY OTHER SCHOOLS IN DESIGN OR IN CONSTRUCTION AT THIS TIME OUTSIDE OF WHAT'S ON THE SCREEN.WE ALSO HAVE VERY LITTLE BOND AUTHORIZATION LEFT.
IF YOU REMEMBER LAST FALL, I BELIEVE WE TALKED TO YOU GUYS ABOUT.
USING THAT REMAINING MONEY TO HELP COVER CONSTRUCTION OVERRUNS IN THE 2018 BOND PROGRAM BECAUSE THE COST OF CONSTRUCTION HAS JUST SKYROCKETED SINCE WE SINCE VOTERS APPROVED THE 2018 PROGRAM.
SO THAT MONEY WAS ORIGINALLY PLANNED FOR AN ELEMENTARY SCHOOL.
WE SPOKE WITH OUR CAPITAL PROJECTS COMMITTEE.
THEY SUGGESTED THAT WE USE THAT TO COVER THE CONSTRUCTION NEEDS FOR THE 2018 PROGRAM, AND THEN IF WE NEEDED ANOTHER ELEMENTARY SCHOOL IN THE FUTURE TO PUT THAT INTO A FUTURE BOND PROGRAM.
SO THAT IS WHAT WE ARE MOVING FORWARD WITH, BASED ON THOSE RECOMMENDATIONS.
I JUST WANTED TO GIVE YOU GUYS THAT REMINDER.
THERE IS $32 MILLION REMAINING IN THE 2018 BOND PROGRAM, WHICH WAS ORIGINALLY 691 MILLION.
THAT 32 MILLION IS FOR AN ELEMENTARY SCHOOL.
THAT'S WHAT IT'S EARMARKED FOR CURRENTLY.
OUTSIDE OF THAT, WE HAVE SOLD ALL OF THE BONDS ASSOCIATED WITH THAT PROGRAM AND WE ARE IN THE LAST YEAR, 12 TO 18 MONTHS OF FINISHING THOSE PROJECTS, 12, MAYBE 24, JUST DEPENDING.
SO THE ECONOMY IS THE NEXT KEY FACTOR INFLUENCING OUR BUDGET INFLATION.
I THINK WE ALL KNOW THAT INFLATION HAS JUST BEEN SOMETHING REALLY FUN TO DEAL WITH FOR THE PAST COUPLE OF YEARS.
THE BUREAU OF LABOR STATISTICS ESTIMATES THAT INCREASED BY 17% NATIONALLY FROM JUNE 2019 TO JANUARY OF 2023.
THE REASON I SELECTED THOSE DATES IS BECAUSE JUNE OF 2019 IS THE LAST TIME WE SAW AN INCREASE IN THE BASIC ALLOTMENT, AND JANUARY OF 2023 WAS THE START OF THIS 88TH LEGISLATIVE SESSION.
IF YOU LOOK AT TEXAS SPECIFICALLY, THAT SAME TIME PERIOD, INFLATION WAS 18%.
SO WE OUTPACED THE NATIONAL STATISTIC.
I PULLED ENROLLMENT GROWTH WHEN WE ESTIMATED THIS.
WE PULLED ENROLLMENT GROWTH OUT OF IT BECAUSE THAT COULD SKEW THE NUMBERS.
THIS IS AN ATTEMPT AT GETTING THE TRUE INFLATIONARY COSTS WITHOUT CONSIDERATION OF ENROLLMENT GROWTH OR NEW SCHOOLS BEING ADDED, BUT YOU CAN SEE WE'RE SPENDING NOW 64% MORE ON FUEL THAN WE WERE IN 2019, 34% MORE ON UTILITIES AND 143% MORE ON PROPERTY INSURANCE THAN WE WERE IN 2019, AND SO I POINT THAT OUT TO SAY SCHOOLS AREN'T IMMUNE TO INFLATION, RIGHT? JUST LIKE NOBODY IS IMMUNE TO INFLATION.
I THINK, YOU KNOW, OUR STAFF ARE EXPERIENCING THIS INFLATION AS WELL.
THAT'S A KEY THING THAT WE'VE HAD TO THINK ABOUT IN ADOPTING OR IN PROPOSING THIS BUDGET.
IT'S IMPORTANT TO REMEMBER THAT FUNDING FORMULA AND THE FACT THAT WE'RE ON A FIXED INCOME AND WE DON'T GET TO GENERATE ADDITIONAL REVENUE WHEN THINGS GET MORE EXPENSIVE.
SO I ACTUALLY GOT ASKED NOT TOO LONG AGO WHY CAN BUC-EES PAY $18 AN HOUR AND FRISCO ISD CAN'T? AND SO I THINK IT'S IMPORTANT TO TALK ABOUT THOSE KINDS OF THINGS, RIGHT? BUC-EES, OTHER COMPANIES, THOSE ARE FOR-PROFIT ENTITIES.
THEY CAN INCREASE THEIR COSTS TO INCREASE SALES AND THEY CAN USE THAT MONEY TO PAY EMPLOYEES TO PAY FOR THE COST OF OF DOING BUSINESS.
WE CAN'T GO TO THE LEGISLATURE.
WELL, WE CAN GO TO THE LEGISLATURE AND SAY WE NEED MORE MONEY.
WE ARE AT THE MERCY OF THE STATE FOR FUNDING, AND IF THEY DON'T INCREASE OUR ALLOTMENT WHEN THEY MEET EVERY TWO YEARS, THEN WE ARE LOOKING AT HAVING TO CUT BACK OR CHANGE THE WAY THAT WE PROVIDE SERVICES JUST IN ORDER TO AFFORD THE INCREASED COST OF DOING BUSINESS.
SO IT'S SOMETHING THAT IS DEFINITELY BEING FELT ACROSS THE BOARD.
SO SPEAKING OF THE TEXAS LEGISLATURE, SIGNING DAY WAS YESTERDAY.
THEN THIS IS WHERE WE ENDED UP.
SO THE STATE HAD A $33 BILLION SURPLUS THAT THEY WERE DEALING WITH.
[00:30:02]
THERE WAS TWELVE AND ONE HALF BILLION THAT WAS ORIGINALLY INTENDED FOR PROPERTY TAX RELIEF.3.99 BILLION FOR SCHOOL FINANCE.
500 MILLION FOR PRIVATE SCHOOL VOUCHERS AND THEN 49.4 MILLION FOR VIRTUAL EDUCATION.
SO THE TWO CHAMBERS OF THE LEGISLATURE WERE NOT ABLE TO COME TO AN AGREEMENT ON ANY OF THOSE THINGS BEFORE SINE DIE, MEANING THAT MONEY WAS LEFT ON THE TABLE AND THERE WERE NO BILLS PASSED.
THERE WAS ONE BILL THAT WAS PASSED THAT IMPACTED US FINANCIALLY.
SO SINCE SIGNING DAY WAS YESTERDAY, WE'RE STILL WORKING THROUGH WHAT ALL OF THAT LOOKS LIKE.
WHAT I DO WANT TO SAY ABOUT HB THREE AND THE SCHOOL SAFETY ALLOTMENT IS THAT ALLOTMENT PROVIDES, LIKE I SAID, ABOUT 1.1 MILLION IN NEW FUNDING FOR THE DISTRICT.
CURRENTLY, WE RECEIVE $626,000 IN REVENUE UNDER THE SCHOOL SAFETY ALLOTMENT.
WE SPEND A LITTLE OVER $5 MILLION A YEAR ON SCHOOL SAFETY JUST FROM OUR OPERATING FUND.
SO THAT'S I'M NOT TALKING ABOUT CAPITAL IMPROVEMENTS.
I'M TALKING ABOUT SROS, OUR SECURITY AND EMERGENCY MANAGEMENT DEPARTMENTS, THOSE KINDS OF THINGS.
THAT ADDITIONAL 1.1 MILLION WON'T EVEN COVER THE MONEY THAT WE SPEND CURRENTLY.
THE GOVERNOR HAS CALLED SPECIAL SESSION NUMBER ONE ALREADY, EVEN THOUGH SINE DIE WAS YESTERDAY.
LIKE I MENTIONED, WE DON'T ADOPT THE TAX RATE UNTIL AUGUST OR SEPTEMBER, SO THERE WILL BE PLENTY OF TIME TO SEE THE IMPACT THAT HAS BEFORE WE HAVE TO ADOPT OUR TAX RATE. IT ALSO WON'T MAKE A DIFFERENCE IN OUR OPERATING FUND BUDGET SIGNIFICANTLY ANYWAY, BECAUSE ANY REDUCTION IN PROPERTY TAX RATES WILL BE OFFSET BY INCREASES IN STATE AID TO SCHOOLS UNDER THAT FORMULA.
IT'S JUST DIFFERENT SOURCES OF MONEY.
FOR HB3, WHAT WOULD BE THE DIFFERENCE IN COST TO THE DISTRICT TO PROVIDE SROS AT EVERY CAMPUS VERSUS WHAT WE'RE PROVIDING NOW? I DON'T HAVE THE COST THAT IT WOULD LET ME TAKE A STEP BACK.
I DON'T KNOW THAT WE HAVE SROS AVAILABLE FOR EVERY CAMPUS AT THE MOMENT, AND SO WE'RE GOING TO HAVE TO LOOK AT WHAT WHAT THAT LOOKS LIKE AND WHAT THE COST IS.
CURRENTLY, WE SPLIT THE COST OF SROS WITH THE CITY OF FRISCO, SO WE ONLY PAY 50% OF THAT.
I DON'T KNOW IF WE WOULD HAVE TO PAY 100% OF THAT.
SO THERE'S A LOT TO BE TAKEN INTO CONSIDERATION.
WHAT I CAN SAY IS THE 15, SO PART OF HB THREE, PART OF THAT $1.1 MILLION, IT'S $15,000 PER CAMPUS.
THAT'S HOW WE'RE GETTING THE ADDITIONAL 1.1 MILLION THAT WOULD COVER AN SRO AT 1 IN 3 CAMPUSES.
SO THAT PIECE OF THE FUNDING ALONE WOULD COVER A THIRD OF WHAT THEY'RE ASKING FOR, BUT WE'LL HAVE TO FIGURE OUT WHAT OUR PLAN IS GOING TO BE AND WHAT THAT COST LOOKS LIKE, AND WE'LL HAVE TO PROVIDE THAT TO YOU AT A FUTURE DATE.
DID THE FINAL ITERATION OF HB THREE, DID IT ALLOW DID IT PROVIDE A PER PUPIL ALLOTMENT AS WELL, OR DID THEY JUST LAND ON THE PER CAMPUS? SO NO, IT ALSO CONTINUES TO PROVIDE A PER PUPIL ALLOTMENT.
[00:35:05]
CURRENTLY THE SCHOOL SAFETY ALLOTMENT IS $9.72 PER STUDENT IN AVERAGE DAILY ATTENDANCE.THEY INCREASE THAT FROM $9.72 TO $10 IN HB THREE.
SO WE GOT AN ADDITIONAL $0.28 PER STUDENT IN AVERAGE DAILY ATTENDANCE, PLUS THE $15,000 PER CAMPUS.
ONE MORE QUICK QUESTION. HOW MANY SROS DO WE HAVE EMPLOYED CURRENTLY? I JUST CAN'T REMEMBER THE NUMBER OFFHAND.
DOES THAT SOUND RIGHT, SCOTT? 35 AROUND 35-ISH.
ANY OTHER LEGISLATIVE QUESTIONS.
IF YOU HAVE THEM, I'M GOING TO DEFER TO DANNY.
ALL RIGHT. SO NOW THAT WE UNDERSTAND THE KEY FACTORS THAT GO INTO THE BUDGET.
IF OUR PROPERTY TAX, IF OUR PROPERTY VALUES GO UP, STATE AID JUST GOES DOWN AND VICE VERSA.
LET'S GET INTO ALL OF THE PIECES OF THIS YEAR'S PROPOSED BUDGET.
SO FIRST OF ALL, JUST A LITTLE BIT ABOUT THE PROCESS THAT WE GO THROUGH.
IT STARTS WITH DISTRICT BUDGET OWNERS.
THESE ARE PRINCIPALS AND OTHER DEPARTMENT DIRECTORS THROUGHOUT THE DISTRICT THAT ARE RESPONSIBLE FOR HANDLING THEIR OWN SMALL BUDGETS, SO THEIR OWN DEPARTMENT BUDGETS OR THEIR OWN CAMPUS BUDGET.
THEY'RE RESPONSIBLE FOR CONDUCTING ANALYSIS, RESEARCH OF THE RESOURCES THAT THEY NEED FOR IDENTIFYING COST SAVINGS OPPORTUNITIES WHERE THEY CAN AND FOR OVERSEEING AND MONITORING THEIR BUDGETS THROUGHOUT THE YEAR.
DR. WALDRIP AND IST ARE RESPONSIBLE FOR THE DISTRICT'S BUDGET AS A WHOLE.
SO WE WANT TO MAKE SURE THAT SPENDING IS ALIGNED WITH OUR PRIORITIES, THAT WE ARE REVIEWING FEEDBACK FROM THOSE BUDGET OWNERS AND MAKING RECOMMENDED ADJUSTMENTS TO FUTURE BUDGETS BASED ON THAT FEEDBACK THAT WE ARE SEEKING FEEDBACK FROM STAKEHOLDERS AS NECESSARY, WHETHER THAT'S THROUGH OUR DISTRICT ADVISORY COUNCIL OR INTERNAL STAKEHOLDERS.
WE DEVELOP THE BUDGET AND THEN WE OVERSEE AND MONITOR SPENDING AT A DISTRICT LEVEL, AND THEN THE BOARD'S RESPONSIBILITIES OBVIOUSLY ARE TO SET THE VISION AND GOALS THAT DRIVE OUR BUDGET AND STRATEGIC PLANS.
YOU GUYS REVIEW AND PROVIDE FEEDBACK ON THE BUDGET RECOMMENDATIONS THAT WE GIVE YOU AND THEN YOU ULTIMATELY APPROVE THE ANNUAL BUDGETS FOR THE GENERAL FUND DEBT SERVICE FUND AND CHILD NUTRITION FUND, AS WELL AS THE ANNUAL COMPENSATION PLAN.
SO THIS IS A PROCESS THAT TAKES A GOOD MAJORITY OF THE YEAR.
I WON'T READ THIS WHOLE CALENDAR TO YOU, BUT WE START IN THE FALL.
AS SOON AS WE RECEIVE UPDATED DEMOGRAPHIC PROJECTIONS, WE START LOOKING AT WHAT OUR BUDGET IS GOING TO BE FOR THE UPCOMING YEAR, AS WELL AS WHAT THAT LOOKS LIKE IN OUR FINANCIAL PLAN.
IT'S A FIVE YEAR FINANCIAL PLAN.
TYPICALLY WE TRY TO PUSH THESE WORKSHOPS BACK TILL CLOSE TO THE END OF THE SESSION JUST SO THAT ANYTHING THAT COMES OUT OF IT, WE CAN MAKE SURE TO WORK INTO THE BUDGET, THE PROPOSED BUDGET.
WE ALSO THROUGHOUT THE SPRING, WE'RE WORKING WITH BUDGET OWNERS TO EVALUATE THEIR BUDGETS, TO CUT COSTS WHERE THEY CAN GIVE MONEY BACK TO HELP PROVIDE FOR OTHER FOR OTHER NEEDS.
IN JUNE, WE WILL HOLD A PUBLIC HEARING ON THE BUDGET AND THEN AT A SPECIAL BOARD MEETING ON JUNE 20TH, I BELIEVE YOU GUYS WILL VOTE TO APPROVE THE BUDGET FOR NEXT YEAR.
ONE OF THE THINGS THAT I ALWAYS LIKE TO DO BEFORE WE DEVELOP A BUDGET IS FINANCIAL BENCHMARKING.
[00:40:03]
IT'S JUST WE SHOULDN'T MAKE DECISIONS BASED ON FINANCIAL BENCHMARKING, BUT IT SHOULD PROVIDE US ESSENTIALLY A GUT CHECK OF WHERE WE'RE SPENDING COMPARED TO OUR PEERS, AND SO EACH YEAR I GO THROUGH AND RE-EVALUATE OUR PEER GROUPS.YOU CAN SEE THE CRITERIA HERE THAT WE'VE USED.
WE SELECT INDEPENDENT PUBLIC SCHOOL DISTRICTS WITH ENROLLMENT BETWEEN 50,000 AND 100,000 STUDENTS.
IN THE PAST, WE HAVE USED A TEXAS SMART SCHOOLS RATING INSTEAD OF TO ACCOUNTABILITY RATINGS.
THE TEXAS SMART SCHOOLS RATING HASN'T BEEN UPDATED SINCE 2020, AND SO I SWITCHED TO ACCOUNTABILITY RATINGS INSTEAD BECAUSE THOSE ARE A LITTLE BIT MORE UP TO DATE, AND SO WE LOOKED AT DISTRICTS WITH TO ACCOUNTABILITY RATINGS OF B OR HIGHER WITH AN OVERALL SCORE OF 85 OR BETTER, AND THEN WE ALSO LOOKED AT A SCHOOL FIRST RATING OF A AND IF YOU REMEMBER, THE SCHOOL FIRST IS THE FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS, AND SO WE WANTED DISTRICTS THAT WERE A-RATED FINANCIALLY.
SO THESE ARE THE DISTRICTS THAT WE CAME UP WITH FOR OUR PEER GROUP.
YOU CAN SEE THERE ARE SOME NEW DISTRICTS IN THERE THAT HAVEN'T BEEN IN THERE BEFORE.
THERE ARE ALSO SOME DISTRICTS THAT HAVE BEEN IN THERE BEFORE THAT ARE NOT ANYMORE.
PLANO ISD IS ONE OF THE ONES THAT YOU MIGHT SEE MISSING.
THEY NO LONGER HAVE 50,000 STUDENTS.
SO THEY FELL OUT OF OUR GROUP BECAUSE THEY DIDN'T MEET THAT CRITERIA.
WE DO STILL LOOK AT THEIR INFORMATION.
THEY'RE JUST NOT PART OF THIS FORMAL BENCHMARKING GROUP.
THIS IS ALL 2021-22 FINANCIAL INFORMATION BECAUSE THAT'S THE LAST FULL AUDITED YEAR OF FINANCIAL INFORMATION THAT WE HAVE FOR ALL SCHOOL DISTRICTS , AND YOU HAVE THE DETAILED BENCHMARKING REPORT IN YOUR PACKET.
THE FIRST THING IS REVENUES AND EXPENDITURES FOR EACH DISTRICT.
SO WHAT YOU'LL SEE ON THE SCREEN IS GENERAL FUND REVENUE AND SPECIAL REVENUE FUND REVENUE AND EXPENDITURES FOR OUR PEERS.
SO OUR PEERS HAVE SIGNIFICANTLY MORE.
THIS IS FRISCO ISD ON THE LEFT.
THIS IS THE AVERAGE OF OUR PEERS ON THE RIGHT.
SO YOU CAN SEE OUR PEERS ON AVERAGE GENERATE SIGNIFICANTLY MORE REVENUE THAN WE DO ON AVERAGE $1420 MORE PER STUDENT IN THE 2022 FISCAL YEAR THAN US, AND 80% OF THAT ADDITIONAL OF THAT $1420 CAME FROM SPECIAL REVENUE FUNDS.
SO WHAT WE DON'T KNOW IS HOW MUCH OF THAT IS ESSER MONEY.
SO MONEY THAT CAME FROM THE STIMULUS VERSUS HOW MUCH OF IT IS ONGOING SUSTAINABLE GRANT REVENUE.
ONE OF THE THINGS THAT WE DO KNOW IS MOST OF THE FEDERAL GRANTS USE YOUR LOW SOCIOECONOMIC POPULATION TO DETERMINE YOUR GRANT AWARD.
FRISCO ISD HAS A VERY LOW PERCENTAGE OF LOW SOCIOECONOMIC STUDENTS, WHICH MEANS WE GENERATE LESS FEDERAL GRANT FUNDING THAN THE MAJORITY OF OUR PEERS, AND THAT IS LIKELY WHAT'S ATTRIBUTING TO THIS DIFFERENCE, BUT ESSER COULD BE CO-MINGLED IN THERE SOMEWHERE.
IN FACT, THIS LIGHT BLUE FOR FRISCO ISD IS LARGER THAN IT GENERALLY IS BECAUSE OF OUR ESSER FUNDING.
THE EXPENDITURES ARE IN RED AND AGAIN IT'S THE SAME FRISCO ON THE LEFT PEER DISTRICTS ON THE RIGHT.
THE DARK RED IS GENERAL FUND SPENDING AND THE LIGHT RED IS GRANT SPECIAL REVENUE FUNDS, AND SO YOU CAN SEE BECAUSE WE GENERATE LESS REVENUE THAN OUR PEERS, WE ALSO SPEND LESS JUST IN TERMS OF DOLLARS THAN OUR PEERS DO.
FUNCTIONAL SPENDING PER STUDENT.
LOOKS REALLY POSITIVE FOR US WHEN WE COMPARE OURSELVES TO OTHER DISTRICTS.
SO OUR EXPENDITURES ARE DIVIDED INTO FUNCTIONS, AND THAT ALLOWS US TO COMPARE DISTRICT TO DISTRICT.
IT ALLOWS TO COMPARE DISTRICT TO DISTRICT, AND SO WE USE FIVE MAJOR FUNCTIONS, INSTRUCTION AND INSTRUCTIONAL SUPPORT OPERATIONS, GENERAL ADMINISTRATION AND THEN OTHER OTHER IS JUST SOME MINOR, JUST MINOR EXPENDITURES THAT AREN'T SUPER COMMON TO SCHOOL DISTRICTS.
SO THAT'S WHY THEY'RE CATEGORIZED AS OTHER.
YOU CAN SEE FRISCO ISD AT THE TOP PEER DISTRICT AVERAGE AT THE BOTTOM.
[00:45:05]
OPPORTUNITY MODEL THAT WE HAVE IN FRISCO ISD.WE ALSO SPEND SIGNIFICANTLY LESS ON OPERATIONS THAN OUR PEERS DO.
SO THAT'S THIS NAVY BLUE BAR HERE.
THAT'S NOT BECAUSE WE'RE SUPER EFFICIENT IN OPERATIONAL SPENDING NECESSARILY.
I THINK IT HAS MORE TO DO WITH THE FACT THAT OUR BUILDINGS JUST IN GENERAL ARE A LITTLE BIT NEWER THAN A LOT OF OUR PEERS WHO HAVE BEEN WHO GREW WAY BEFORE WE DID AND HAVE BEEN BUILT OUT FOR A WHILE, AND SO JUST MAINTENANCE IN GENERAL, OPERATING COSTS ON OLDER BUILDINGS IS GOING TO COST MORE.
ONE OF THE THINGS THAT WE DON'T KNOW IS HOW MUCH OUR MONEY OUR PEERS USE TO SUPPLANT GENERAL FUND SPENDING FROM ESSER WE KNOW WE USED IN 2021-22, WHICH IS THE YEAR WE'RE BENCHMARKING.
WE KNOW WE USED SOME MONEY FROM ESSER TO SUPPLANT GENERAL FUND EXPENDITURES.
WE DON'T KNOW HOW MUCH IT IMPACTED OUR PEERS, AND SO THIS THIS MAY BE SKEWED SLIGHTLY.
PAYROLL AND STAFFING IS ANOTHER AREA THAT WE BENCHMARK WITH THIS PEER GROUP.
SO YOU CAN SEE THE NUMBER OF TEACHERS.
SO THIS IS JUST A GENERAL IDEA OF THE NUMBER OF DIFFERENT TYPES OF STAFF THAT WE HAVE.
SO WE HAVE MORE TEACHERS THAN OUR PEER DISTRICT AVERAGE ROUGHLY THE SAME NUMBER OF SUPPORT STAFF, ADMINISTRATIVE STAFF AND FEWER PROFESSIONAL AND AUXILIARY STAFF THAN OUR PEERS. IN TERMS OF AVERAGE SALARIES, YOU CAN SEE FOR 20--THIS AGAIN IS FOR 2021-22.
SAME THING FOR ADMINISTRATOR SALARIES.
THIS IS A COMBINATION OF CAMPUS AND CENTRAL ADMINISTRATOR SALARIES, AND SO WE WERE SLIGHTLY HIGHER IN TEACHER PAY, SLIGHTLY LOWER IN ADMINISTRATOR PAY THAN OUR PEERS. ALSO, AS A PERCENTAGE OF TOTAL SPENDING, FRISCO ISD SPENT ABOUT 85% OF ALL OF OUR EXPENDITURES ON PAYROLL COMPARED TO OUR PEER DISTRICTS, WHO ON AVERAGE SPENT ABOUT 83% OF THEIR TOTAL EXPENDITURES ON PAYROLL.
WHEN WE LOOK AT TEACHER PAY, ONE OF THE THINGS THAT I WANT TO SAY ABOUT THIS BEFORE I MOVE ON.
MANY OF OUR PEERS ARE IN PAY MARKETS THAT ARE OUTSIDE OF THE DFW AREA.
SO DISTRICTS AROUND THIS AREA THAT WE WOULD COMPETE WITH FOR STAFF, MOST OF OUR PEER DISTRICTS THAT WE BENCHMARK AGAINST FINANCIALLY ARE OUTSIDE OF OUR PAY MARKET AND SO AND MANY OF THEM ARE DOWN SORT OF IN THE HOUSTON AREA, WHICH HISTORICALLY HAS HAD A HIGHER PAY MARKET THAN THE DFW AREA HAS.
SO I THINK THIS BENCHMARK IS A REALLY GOOD ONE FOR FOR US, IT TELLS A REALLY GOOD STORY, BUT WHEN WE LOOK AT PAY SPECIFICALLY, WE WANT TO MAKE SURE WE'RE LOOKING AT OUR LOCAL PAY MARKET.
SO I'M SWITCHING GEARS HERE AND SHOWING YOU 2022-23 TEACHER PAY SCALES FOR FRISCO ISD AND THE LOCAL PAY MARKET. SO WE'VE GONE FROM 2021-22 TO 2022-23 JUST TO MAKE SURE THAT'S CLEAR.
SO THIS IS THE LOCAL PAY MARKET.
WHAT YOU SEE HERE IS THE LOCAL MARKET MEDIAN IN THIS BLUE LINE.
FRISCO ISD PAY FOR TEACHER YEARS OF EXPERIENCE.
THE GRAY BARS REPRESENT THE INTERQUARTILE RANGE, SO THE 25TH PERCENTILE BETWEEN THE 25TH AND THE 75TH PERCENTILE IS WHERE YOU SEE THIS SHADED BAR. YOU CAN SEE THE MINIMUM, THE MAXIMUM FOR OUR THE OTHER 19 DISTRICTS IN THE LOCAL PAY MARKET.
YOU CAN SEE THE INTERQUARTILE RANGE THAT'S SHADED AND YOU CAN SEE THE BAR IN EACH BOX IS THE MEDIAN, AND SO IDEALLY WHEN WE LOOK AT COMPETITIVE COMPENSATION, WE WANT TO BE IN THE GRAY BOX.
WE DON'T WANT TO BE BELOW THE GRAY BOX.
WE WANT TO BE AT LEAST IN THE GRAY BOX IN ORDER TO BE COMPETITIVE, AND WE WOULD LOVE TO BE ABOVE THAT MEDIAN LINE IN ORDER TO BE TRULY COMPETITIVE WITH THE LOCAL PAY MARKET. SO IF YOU LOOK AT THIS RED LINE, AND AGAIN, THIS IS THE YEAR THAT WE JUST FINISHED, RIGHT? BECAUSE WE DON'T HAVE COMPENSATION PLANS FOR EVERY SCHOOL DISTRICT THAT WE THAT IS IN OUR LOCAL PAY MARKET FOR NEXT YEAR.
SO WE HAVE TO LOOK AT WHAT WHAT WE KNOW.
[00:50:10]
HAVE TEN OR MORE YEARS OF EXPERIENCE ARE WHAT WE WOULD CONSIDER OUTLIERS IN THE LOCAL PAY MARKET.I ALSO GAVE YOU OVER HERE THE DISTRIBUTION OF TEACHER EXPERIENCE IN FRISCO ISD.
AGAIN, THIS WAS FOR THE 22-23 SCHOOL YEAR.
SO YOU CAN SEE THE MAJORITY OF OUR TEACHERS ARE SIX, HAVE SIX YEARS OF EXPERIENCE OR MORE, WHICH IS RIGHT ABOUT THE TIME THAT WE START TO GET OUTSIDE OF THAT HIGH END OF THAT RANGE THAT WE WANT TO BE IN.
SO THAT'S POSITIVE. THAT MEANS WE HAVE COMPETITIVE TEACHER PAY.
IT MEANS THAT FOR 22-23, WE WERE WHERE WE WANTED TO BE IN TERMS OF TEACHER SALARIES.
SO MOVING INTO OUR PRIORITIES FOR THE 23-24 BUDGET.
WE NEED TO ALLOCATE STAFF TO NEW SCHOOLS APPROPRIATELY BUT EFFICIENTLY.
WE ALSO NEED TO MAINTAIN REASONABLE RATIOS FOR SPECIAL PROGRAMS SO WE'RE NOT DONE GROWING YET.
LIKE I MENTIONED BEFORE, ENROLLMENT GROWTH IS A FACTOR AND WE'RE NOT DONE GROWING YET.
SO WE NEED TO MAKE SURE THAT WE REMAIN STAFFED APPROPRIATELY FOR ENROLLMENT GROWTH.
ON TOP OF THAT, WE NEED TO MAKE SURE THAT WE ADOPT A BUDGET THAT'S SUSTAINABLE SO WE KNOW WE ADOPTED A DEFICIT BUDGET FOR THE 22-23 SCHOOL YEAR BASED ON THE FACT THAT WE DID NOT GET ADDITIONAL REVENUE FROM THE LEGISLATURE, WE WILL BE RECOMMENDING A DEFICIT BUDGET AGAIN FOR THE COMING YEAR. WE'LL TALK MORE ABOUT THAT IN A MINUTE, BUT WE ONE OF OUR PRIORITIES THIS YEAR AS WE WERE DEVELOPING THIS BUDGET WAS TO IDENTIFY COST SAVINGS WHEREVER POSSIBLE TO HELP BALANCE THE BUDGET DEFICIT THAT WE ADOPTED LAST YEAR WITHOUT SIGNIFICANTLY IMPACTING OPERATIONS.
SO THIS WAS REALLY IMPORTANT TO US BECAUSE SINCE IT WAS A LEGISLATIVE YEAR, WE WEREN'T REALLY SURE WHAT WAS GOING TO COME OUT OF IT AND THE LAST THING WE WANTED TO DO WAS MAKE DECISIONS TO CHANGE THE WAY THAT WE OPERATE OR DECREASE SERVICES AND THEN HAVE THE STATE COME IN AT THE 11TH HOUR AND PROVIDE ADDITIONAL REVENUE THAT COULD HAVE ALLOWED US TO SUSTAIN THAT PROGRAMMING. SO WE LOOKED FOR COST SAVINGS WHEREVER POSSIBLE WITHOUT SIGNIFICANTLY IMPACTING OPERATIONS, AND THEN OF COURSE, COMPETITIVE COMPENSATION IS SOMETHING THAT WAS A PRIORITY FOR US.
WE, JUST LIKE EVERY OTHER DISTRICT AROUND, NEED TO BE ABLE TO PROVIDE STAFF WITH WAGES THAT ARE SUFFICIENT TO MITIGATE INFLATION AND EXPECTED INCREASES IN MEDICAL INSURANCE PREMIUMS, BECAUSE WE KNOW THOSE GO UP EVERY YEAR.
SO WE DO UTILIZE SOMETHING IN FRISCO ISD CALLED PRIORITY BASED BUDGETING.
YOU GUYS HAVE PROBABLY HEARD ME TALK ABOUT THIS A MILLION TIMES, BUT ESSENTIALLY WE ARE CONSTANTLY LOOKING FOR SAVINGS OPPORTUNITIES TO HELP PAY FOR NEW PRIORITIES OR INCREASE COST OF EXISTING PRIORITIES.
WE'RE LOOKING FOR FOR EFFICIENCIES IN SPENDING CONTINUOUSLY THROUGHOUT THE YEAR.
WE DO THAT ESPECIALLY DURING OUR BUDGET CYCLE AS WE'RE DEVELOPING THE BUDGET FOR THE UPCOMING YEAR.
NEW PRIORITIES WITHIN OUR BUDGET BEFORE WE JUST INCREASE THE BUDGET IN GENERAL.
WE ALSO ADOPTED, LONG BEFORE I BECAME CFO HERE, SOME BUDGET PRINCIPLES THAT WE STILL HOLD TO.
ESSENTIALLY MAINTAINING THE STANDARDS OF OUR COMMUNITY, MAINTAINING THE GOALS AND OBJECTIVES ADOPTED BY THE BOARD OF TRUSTEES EFFECTIVELY AND EFFICIENTLY SPENDING.
OKAY, SO LET'S GET INTO THE GENERAL FUND BUDGET.
I'M GOING TO GO THROUGH THE DETAIL OF OUR REVENUE PROJECTIONS.
SO WHEN WE LOOK AT REVENUE, THERE'S A LOT OF NUMBERS AND WORDS ON THIS PAGE.
I'M NOT GOING TO READ ALL OF IT TO YOU, BUT I DIVIDE OUR REVENUE INTO THESE MAJOR CATEGORIES.
SO THIS IS PROPERTY TAX REVENUE AND STATE AID THAT MAKES UP THAT FORMULA ENTITLEMENT.
THEN WE HAVE NON FORMULA TAX REVENUE.
SO THIS IS PENALTIES AND INTEREST THAT DOESN'T GET COUNTED IN THE FORMULA ENTITLEMENT.
[00:55:05]
WE HAVE OTHER LOCAL REVENUE.SO THIS IS MISCELLANEOUS REVENUE FROM THINGS LIKE INVESTMENT INCOME, ATHLETIC RECEIPTS, FACILITY RENTALS, THINGS LIKE THAT, AND THEN FEDERAL REVENUE.
WE RECEIVE SOME FEDERAL MONEY IN OUR GENERAL FUND THROUGH MEDICAID.
STUDENTS WHO ARE MEDICAID ELIGIBLE, WE CAN BILL FOR SERVICES PROVIDED TO THOSE STUDENTS, AND SO MEDICAID WILL REIMBURSE US FOR THE COST OF THOSE SERVICES, AND THAT MONEY GOES INTO OUR GENERAL FUND.
NON FORMULA TAX REVENUE PENALTIES AND INTEREST HAS BEEN DECLINING FOR A NUMBER OF YEARS AS WE'VE GOTTEN MORE BUILT OUT IN THE CITY OF FRISCO, WE USED TO RECEIVE A SIGNIFICANT AMOUNT OF MONEY EVERY YEAR FROM.
THAT'S NOT HAPPENING AS MUCH ANYMORE.
SO WE'VE BEEN PULLING THIS NUMBER DOWN FOR A FEW YEARS NOW.
SO THAT'S THE MAJORITY OF THAT MONEY.
WE ALSO ARE GENERATING MORE SINCE COVID.
WE'RE NOW BACK TO GENERATING A HEALTHY AMOUNT OF REVENUE FROM FACILITY RENTALS AND THINGS LIKE THAT.
SO WE'RE BUMPING THAT BACK UP, AND THEN THE SAME THING FOR MEDICAID REVENUE EACH YEAR.
SO WE'RE INCREASING THAT PROJECTION AS WELL JUST TO MATCH WHAT WE EXPECT TO RECEIVE NEXT YEAR.
FLOW-THROUGH REVENUES ARE REVENUES THAT COME IN AND GO STRAIGHT BACK OUT.
SO TRS, ON BEHALF, THE STATE PAYS A PORTION OF TRS CONTRIBUTIONS FOR EMPLOYEES ON BEHALF OF THE DISTRICT, THE REVENUE COMES IN FROM THE STATE AND GOES RIGHT BACK OUT TO THE STATE.
TRS REVENUE, SO MONEY FROM OUR TRS PARTICIPATION WITH THE CITY, THAT MONEY COMES IN FROM PROPERTY TAXES AND GOES RIGHT BACK OUT TO THE CITY OF FRISCO.
SO THINGS LIKE THAT ARE CALLED FLOW-THROUGH.
WE DON'T CONSIDER THOSE IN REVENUE AVAILABLE FOR APPROPRIATIONS.
SO YOU CAN SEE FOR OUR PROPOSED BUDGET, WE'RE LOOKING AT $622.7 MILLION OF REVENUE AVAILABLE FOR APPROPRIATION FOR NEXT YEAR, WHICH REPRESENTS ABOUT A 4.2% INCREASE OVER THE PRIOR YEAR.
SO LET'S TALK ABOUT THEN THE BUDGET.
ALL RIGHT. SO WE START EVERY YEAR WITH WHAT WE CALL THE BASELINE BUDGET, WHICH IS JUST LAST YEAR'S BUDGET, LESS ANY FLOW-THROUGH ITEMS, PLUS ANY BOARD APPROVED AMENDMENTS FOR THINGS THAT WE EXPECT TO BE RECURRING IN THE FUTURE.
SO LAST YEAR'S ADOPTED BUDGET WAS 692.6 MILLION, 72.6 MILLION OF THAT WAS FLOW THROUGH, AND THEN WE HAVE AMENDED THE BUDGET OVER THE COURSE OF THIS YEAR FOR THESE FOR THESE THINGS.
INSURANCE PREMIUMS, ELEMENTARY SROS, COUNTY APPRAISAL DISTRICT CHARGES, UTILITIES AND FUEL.
WE TALKED ABOUT SOME OF THOSE EARLIER.
THOSE ARE PURELY INFLATIONARY.
SO THAT GIVES US A BASELINE BUDGET TO START FROM BEFORE WE ADD ANYTHING NEW OF 627, JUST UNDER $627.5 MILLION. SO IF YOU WATCH AS I GO THROUGH THESE SLIDES UP HERE, I'M GIVING YOU A RUNNING TOTAL JUST SO YOU CAN KIND OF SEE WHERE WE'RE AT AS WE GO THROUGH EACH OF THESE PIECES.
SO YOU CAN SEE WE HAD $622 MILLION OF REVENUE AVAILABLE.
WE'RE STARTING WITH 627 MILLION IN OUR BASELINE BUDGET.
SO WE'RE STARTING AT A DEFICIT OF $4.7 MILLION FOR NEXT YEAR BEFORE WE CONSIDER ANY NEW CHANGES.
THAT WAS FOR WHAT WE CONSIDERED ATTRITION.
SO THE COST OF TURNOVER OVER THE PAST COUPLE OF YEARS THAT HADN'T BEEN PULLED OUT OF THE BUDGET YET, PLUS VACANT POSITIONS THAT WE HAVE ELIMINATED, AND SO YOU CAN SEE THE TOTAL COST SAVINGS THAT WE IDENTIFIED WAS JUST OVER $6.4 MILLION.
SO NOW HERE'S ALL THE THINGS THAT WE'RE PROPOSING TO ADD NEW.
[01:00:03]
I MENTIONED THAT THE FIRST PRIORITY FOR US FOR THIS BUDGET WAS TO MAINTAIN CLASS SIZES OR MAINTAIN...I LOST MY TRAIN OF THOUGHT FOR A SECOND.
SORRY WAS TO STAFF FOR ENROLLMENT GROWTH AND MAINTAIN OUR SPECIAL PROGRAMS, MAINTAIN STAFFING FOR OUR SPECIAL PROGRAMS. SO NEW SCHOOLS IS THE FIRST THING THAT WE LOOKED AT.
IF YOU REMEMBER, YOU HAD A LIST OF STAFF THAT WE SAID WE'RE GOING TO NEED TO OPEN, WORHTHAM AND WILKINSON AND THE ONES WITH STARS HERE WERE INCLUDED IN THAT RESOLUTION, IN ADDITION TO THE STAFF NEEDED TO OPEN WORTHAM AND WILKINSON WE HAVE PER PUPIL ALLOTMENTS, SO CAMPUS BUDGETS FOR BOTH OF THOSE SCHOOLS AND THEN DEPARTMENTAL COST INCREASES RELATED SPECIFICALLY TO THOSE TWO NEW SCHOOLS, AND YOU CAN SEE HERE THE DIFFERENT DEPARTMENTS AND THE ADDITIONAL MONEY THAT THEY NEEDED IN ORDER TO PROVIDE SERVICES FOR THOSE TWO SCHOOLS.
SO TOTAL COST OF NEW SCHOOLS, $4.6 MILLION.
OTHER NEW STAFF FOR SPECIAL PROGRAMS OUTSIDE OF JUST OPENING THE NEW SCHOOLS.
WE HAVE SOME NEEDS IN SPECIAL EDUCATION.
THE 36 TEACHERS AND 34 AIDES FOR CENTRALIZED CLASSROOMS WERE ALSO PART OF YOUR FEBRUARY RESOLUTION.
DYSLEXIA PROGRAMS. YOU CAN SEE WE'RE RECOMMENDING THREE ADDITIONAL DYSLEXIA THERAPISTS AND AN EVALUATION SPECIALIST.
THIS IS BASED ON WHAT WE PROJECT OUR PRE-K POPULATION TO GROW TO.
PRE-K IS REALLY DIFFICULT TO PROJECT BECAUSE.
WE DON'T KNOW IF THEY'RE HERE UNTIL THEY ENROLL, AND SO THIS IS JUST BASED ON THE GROWTH THAT WE'VE SEEN OVER THE PAST YEAR AS WE HAVE MOVED TO A FULL DAY PRE-K PROGRAM, AND THEN OUR NNDCC PROGRAM, WE'RE RECOMMENDING ADDING AN ADDITIONAL INSTRUCTOR SO THAT IT CAN THEN BE ELIGIBLE TO BECOME AN ROTC PROGRAM.
SO YOU CAN SEE OTHER NEW STAFF, $5.8 MILLION.
KIM, THAT SPEECH THERAPISTS AMOUNT OF 547,000.
IS THAT ACCURATE FOR TWO SPEECH THERAPISTS OR IS THAT A TYPO? THAT SEEMS A LITTLE HIGH, DOESN'T IT? HOLD ON. LET ME CHECK MY OTHER LIST.
IT IS NOT ACCURATE, BUT LET ME SEE WHAT, OH, YOU KNOW WHY? THAT IS SEVEN SPEECH THERAPISTS NOT TWO.
SO THAT'S WHERE THE TYPO IS NOT TWO, SEVEN.
THANK YOU. I'LL FIX THAT IN THE SLIDES BEFORE WE POST THEM ONLINE.
IT'S CORRECT IN YOUR HANDOUT FOR THOSE OF YOU UP HERE.
OTHER OPERATING COSTS IN ADDITION TO THE STAFFING THAT WE JUST WENT OVER.
SO WHILE WE WENT THROUGH EVERY DEPARTMENT AND CUT AS MUCH AS POSSIBLE, WE STILL HAVE INCREASES IN COSTS, SOME DUE TO INFLATION, SOME DUE TO OTHER FACTORS THAT WE NEED TO BE ABLE TO PAY FOR.
SO YOU CAN SEE HERE THE DIFFERENT DEPARTMENTS AND THE THINGS THAT WE'RE INCREASING FOR.
SO INTERNAL COMMUNICATIONS TOOLS.
YOU GUYS ADOPTED THE CONTRACT FOR [INAUDIBLE] LAST MONTH, I BELIEVE.
YOU GUYS PROBABLY SAW COREY'S EMAIL.
WE HAVE HAD A GREAT YEAR IN FRISCO ISD IN TERMS OF ATHLETICS AND FINE ARTS AND THE AMOUNT OF COMPETITIONS THAT OUR STUDENTS ARE ADVANCING TO, AND THAT COSTS MONEY.
SO FOR ATHLETICS, SPECIFICALLY FOR TRAVEL REFEREES AND UIL FEES, WE HAD TO INCREASE THE BUDGET THIS YEAR AND WE'LL NEED TO INCREASE THE BUDGET NEXT YEAR BASED ON ALL OF THAT AWESOME STUFF THAT OUR STUDENTS ARE DOING.
THIS IS SOMETHING WE STARTED A YEAR OR SO AGO.
IT IS A STANDALONE PROGRAM, A SWIM TEAM PROGRAM.
WE HAVE REVENUE THAT OFFSETS THESE INCREASES IN COST AS THE PROGRAM GROWS, THAT REVENUE IS PART OF THE OTHER LOCAL REVENUE BUDGET THAT YOU SAW ON THE OTHER SCREEN, BUT WE DO HAVE TO BUDGET FOR THEM TO HAVE THAT INCREASED COST SO THEY ARE GENERATING OR ARE EXPECTED TO GENERATE REVENUE SUFFICIENT TO COVER ALL OF THE COSTS FOR THE SWIM TEAM.
[01:05:05]
JUST SOFTWARE INCREASES FOR SOFTWARE AGREEMENTS THAT WE HAVE IN PLACE ABOUT 105,000, AND THEN YOU CAN SEE OVER HERE THE DIFFERENT OPERATIONS COSTS.AGAIN, MOST OF THESE ARE INFLATIONARY OVER AND ABOVE WHAT WE ALREADY AMENDED THE BUDGET FOR IN THE CURRENT YEAR , AND FINALLY, COMPENSATION.
SO I'M GOING TO GO OVER OUR COMPENSATION PLAN IN A LITTLE BIT MORE DETAIL HERE IN A MINUTE, BUT THE BIG GIST OF IT IS THE RAISE THAT WE HAVE PROPOSED, WHICH IS $1,200 FOR TEACHERS AND T-TYPE STAFF.
SO T-TYPE STAFF MEANS OTHER STAFF THAT ARE NOT CLASSROOM TEACHERS THAT ARE ON THE TEACHER PAY SCALE.
SO OUR PROPOSED RAISE IS A $1,200 COMPENSATION INCREASE IN BASE WAGES FOR TEACHERS AND OTHER STAFF ON THE TEACHER PAY SCALE.
FOR STAFF WHO ARE NOT ON THE TEACHER PAY SCALE, WE'RE PROPOSING A 1.5% RAISE FOR THOSE STAFF EMPLOYEES WHO WORK FOUR HOURS A DAY OR MORE WOULD RECEIVE A MINIMUM OF $600 IN THAT RAISE.
EMPLOYEES WHO WORK LESS THAN FOUR HOURS A DAY WOULD RECEIVE A MINIMUM OF $300 IN THAT RAISE, AND THEN ALL RAISES ACROSS THE BOARD WOULD BE CAPPED AT $1,200, WHICH IS THE TEACHER INCREASE.
WE FULLY EXPECT PREMIUMS TO GO UP.
WE DON'T YET KNOW BY HOW MUCH.
WE ALSO KNOW THAT THE STATE WAS LOOKING AT PROVIDING SOME ADDITIONAL MONEY TO TEACHERS.
I DON'T KNOW IF THAT PASSED OR NOT.
SO WHILE WE EXPECTED THE RATES TO GO UP BY SOMETHING LIKE MAYBE 25% BECAUSE THEY WERE GOING TO HAVE TO MAKE UP FOR A COUPLE OF YEARS AFTER THEY BOUGHT DOWN RATES WITH ESSER MONEY. NOW, IT PROBABLY WON'T GO UP 25%, BUT IT WILL GO UP BY SOMETHING.
SO WE WANTED TO MAKE SURE THAT EVERYONE GOT A RAISE THAT COULD HOPEFULLY MITIGATE WHATEVER THE HEALTH CARE PREMIUM INCREASES WOULD BE, WHICH IS WHY WE SET A FLOOR ON THESE, AND THEN, LIKE I SAID, ALL RAISES WOULD BE CAPPED AT $1,200.
THE ONLY RAISES THAT WOULD NOT BE CAPPED AT $1,200 ARE FOR PEOPLE WHO ARE ON A STEP SCALE.
IT'S OUR ADMINISTRATOR PAY SCALE THAT IS ON A STEP SCALE INSTEAD OF A PAY RANGE, AND SO WHEN YOU'RE A NEW ADMINISTRATOR COMING IN AND I'M TALKING ABOUT CAMPUS PRINCIPALS AS WELL AS CENTRAL ADMINISTRATORS, WHEN YOU'RE A NEW ONE COMING IN, YOU START AT THE WHAT WE CALL ZERO YEAR LEVEL AND THEN YOU'RE STEPPED UP OVER THE COURSE OF 2 TO 3 YEARS UNTIL YOU RECEIVE EXPERIENCE, PAY, AND THEN YOU'RE AT EXPERIENCE PAY AND THEN YOU'RE SUBJECT TO WHATEVER THE RAISES ARE.
SO WE'VE DONE THAT FOR A FEW YEARS.
IN ORDER TO KEEP THOSE PAY SCALES INTACT, WE FELT LIKE WE NEED TO GO AHEAD AND PROVIDE THAT STEP INCREASE SO THAT WE DON'T HAVE MAJOR DISCREPANCIES BETWEEN PEOPLE IN THOSE PAY GRADES. THE COST OF THAT IS $105,000 AND EVERYONE RECEIVING STEPS.
THERE ARE CAMPUS PRINCIPALS, AND THEN FRINGE COSTS.
THE INCREASE IN THAT COST IS 2.2 MILLION.
IN ADDITION TO RAISES, WE ARE PROPOSING TWO ADDITIONAL LEAVE DAYS FOR EMPLOYEES.
WE'RE CALLING IT WELLNESS LEAVE.
THAT WOULD BE IN ADDITION TO THE FIVE STATE DAYS AND FIVE LOCAL DAYS THAT STAFF CURRENTLY GET.
SO JUST TWO ADDITIONAL DAYS FOR PEOPLE TO BE ABLE TO TAKE CARE OF OF THEMSELVES, TAKE TIME OFF.
SO IF WE GO BACK TO THIS GRAPH OF TEACHER PAY, SO THIS IS AVERAGE PAY INCREASES FOR TEACHERS THAT ARE INCLUDED IN THE PROPOSED COMPENSATION PLAN THAT WE JUST TALKED ABOUT.
IF YOU IF YOU LOOK AT THIS, THIS IS THE SAME INTERQUARTILE RANGE THAT WE SHOWED BEFORE.
THE RED BAR IS THE PROPOSED TEACHER PAY SCALE.
SO THE TEACHER PAY SCALE IS JUST A HIGHER END SCALE, RIGHT? MEANING ANYBODY WHO COMES INTO THE DISTRICT FOR THE FIRST TIME, WE LOOK AT HOW MANY YEARS OF EXPERIENCE THEY HAVE, AND THAT PAY SCALE TELLS US WHERE TO PLACE THEM.
[01:10:02]
TEACHERS THAT HAVE BEEN WITH US ARE MAKING MORE THAN A NEW HIRE COMING IN FROM OUT OF DISTRICT BASED ON THIS PROPOSAL AND THEN WE WENT AHEAD AND ADDED THE ESTIMATED TEACHER SALARIES.ASSUMING THAT WE PAY OUT THE RETENTION INCENTIVE AGAIN IN JANUARY, THE SAME WAY THAT WE'VE BEEN PAYING IT OUT OVER THE PAST FEW YEARS, AND JUST LIKE EVERY YEAR WHEN WE GET READY TO DO THAT, WE'LL COME TO THE BOARD WITH A RESOLUTION WITH ALL OF THE CRITERIA, BUT ADDING THAT IN PUTS TEACHERS WHO HAVE BEEN WITH US SIGNIFICANTLY ABOVE THE HIGHER-END PAY SCALE.
REMEMBER THE OUTSIDE OF TEACHERS, TEACHERS ARE GETTING $1,200.
EVERYONE ELSE IS GETTING A PERCENT AND A HALF, CAPPED AT $1,200, BUT THERE ARE ALSO FLOORS, $600 MINIMUM, OR $300 MINIMUM IF YOU'RE LESS THAN PART TIME.
SO THIS IS THE AVERAGE PERCENT INCREASE WHEN YOU ADD UP ALL OF THE RAISES AND THEN THE TOTAL COST OF THE INCREASE BY EMPLOYEE TYPE , AND CAMPUS ADMINISTRATORS LIKE I MENTIONED, ARE ON THAT STEP SCALE, WHICH IS WHY THEIR PERCENTAGE IS HIGHER THAN THE 1.5%.
I'M GOING TO PAUSE HERE AND JUST SEE IF ANYBODY HAS QUESTIONS.
BOARD, ANY QUESTIONS? SORRY. SORRY, I DO.
I HAVE A LOT GOING ON UP HERE, SO I DO HAVE ONE QUESTION.
I KNOW THAT YOU'RE PROBABLY GOING TO GET TO THIS.
I'M WITH THE TIA ABOUT TO BEGIN WITH THIS MAKE IT POSSIBLE FOR SOME OF OUR TEACHERS TO HAVE THE ABILITY TO MAKE MORE THAN OUR ASSISTANT PRINCIPALS AND PRINCIPALS? POTENTIALLY. OKAY, AND THEN WILL YOU BE ABLE TO MAKE THE DISTRICT SUPPORT FOR INSURANCE AVAILABLE TO US, THE TEACHER RATES.
WE'RE NOT RECOMMENDING MAKING ANY CHANGES TO THAT THIS YEAR.
WE HAVE ABOUT I BELIEVE IT'S ABOUT 65% OF OUR EMPLOYEES THAT TAKE TRS ACTIVE CARE, AND SO WITH THE MINIMAL AMOUNT OF MONEY THAT WE HAD AVAILABLE TO PROVIDE RAISES, WE CHOSE TO RECOMMEND THAT ALL OF IT GOES INTO RAISES RATHER THAN.
MEDICAL PREMIUMS, WHICH WOULDN'T IMPACT THE WHOLE POPULATION OF STAFF, BUT YES, IT IS $350, AND THEN IN THE COMPENSATION PLAN, THERE IS A SECTION THAT LISTS OUT THE PREMIUM, THE DIFFERENT MONTHLY PREMIUM RATES, DEPENDING ON WHICH PLAN PEOPLE CHOOSE.
IT HAS A TEXT BOX OVER IT RIGHT NOW THAT SAYS NOT UPDATED.
OKAY, AND THEN ONE LAST THING.
THIS IS PROBABLY COMING TOWARD THE END, BUT WILL WE HAVE LIKE A ONE PAGER OR SOMETHING THAT WILL SHOW OUR TEACHERS AND ADMINISTRATORS ALL OF THE THINGS THAT WE'RE DOING AS A DISTRICT THAT WILL CONTRIBUTE SO THAT THEY UNDERSTAND THE INCREASE THAT THEY ARE RECEIVING IS IT MAY NOT BE WHAT SOME OF OUR NEIGHBORING DISTRICTS ARE RECEIVING, BUT THE FUNDING IS COMING THROUGH OTHER CHANNELS.
SO WE HAVE YES SO THIS PAGE RIGHT HERE, ALL THESE OTHER BENEFITS, I KIND OF PICKED THE BIG ONES.
THIS ISN'T EVERYTHING THAT WE PROVIDE TO EMPLOYEES OUTSIDE OF JUST REGULAR BASE PAY.
SO, YES, THAT WILL THAT WILL ALL BE UPDATED.
WE ARE WE ARE STILL PROVIDING THE $350 A MONTH MEDICAL PREMIUM CONTRIBUTION.
WE'RE STILL PROVIDING THE MONTHLY WELLNESS REIMBURSEMENT, WHICH WHICH IS A FITNESS REIMBURSEMENT FOR PEOPLE WHO USE GYM OR FITNESS CENTER AT LEAST TEN TIMES PER MONTH. WE OFFER A PROGRAM THAT GIVES EMPLOYEES FREE FINANCIAL PLANNING SERVICES.
I DIDN'T KNOW THAT WAS STILL ON.
WE OFFER A FREE ON SITE EMPLOYEE HEALTH CLINIC.
OUR ANNUAL RETENTION INCENTIVES.
[01:15:02]
WE DO STILL HAVE MONEY SET ASIDE TO PAY OUT THAT RETENTION INCENTIVE IN JANUARY.SAME FOR THE $250 CLASSROOM TEACHING AND SUPPLY STIPEND.
SO WE HAVE FIVE STATE DAYS AND FIVE LOCAL DAYS THAT WE PROVIDE CURRENTLY.
NOT EVERY DISTRICT PROVIDES TEN DAYS OF LEAVE.
OKAY, ONE MORE THING. SO ALL OF THESE ARE AMAZING BENEFITS, BUT IF I WERE LOOKING AS A TEACHER OR AN ADMINISTRATOR, IS THERE A WAY WE CAN INCLUDE A NUMBER NEXT TO I MEAN, BECAUSE WE'RE OFFERING THE FREE ONSITE EMPLOYEE HEALTH CLINIC TO OUR EDUCATORS, BUT THERE'S STILL A COST, RIGHT? SO ARE WE ABLE TO.
THAT'S NOT SOMETHING THAT WE HAVE DONE.
WE HAVEN'T BROKEN DOWN THE ESTIMATED COST OF THAT AS A TOTAL COMPENSATION PACKAGE, BUT WE COULD DEFINITELY LOOK AT DOING THAT AND TRYING TO PUT THAT ON OUR WEBSITE.
I WILL GET WITH HR AND SEE WHAT WE CAN DO.
THANK YOU. I KNOW THAT A LOT OF, YOU KNOW, OBVIOUSLY ALL THE DECISIONS THAT WE'RE MAKING WHEN IT COMES TO BUDGET ARE INCREDIBLY DATA DRIVEN AND WE'RE A FIXED COST INDUSTRY AND SO WE HAVE TO DO WITH WHAT WE HAVE, BUT YOU KNOW, I GUESS FOUR YEARS AGO, 3 OR 4 YEARS AGO WHEN THE BOARD APPROVED THE RETENTION INCENTIVE FOR THE FIVE YEARS, I KNOW THAT, YOU KNOW, IT WAS IMPORTANT AND IT STILL IS FOR US TO OFFER SOMETHING, RIGHT, FOR TEACHERS AND ADMINISTRATORS, PEOPLE THAT STAY WITH FRISCO ISD.
I MEAN, THAT'S THE POINT OF US PUTTING IT BEHIND RETENTION, BUT I'M WONDERING IF THERE IS SOMETHING THAT COULD WE POTENTIALLY UTILIZE THAT FUNDING AND SPACE IT OUT OVER THE YEAR TO MAKE IT A MORE AND MAYBE NOT THIS YEAR, BUT JUST AS A WAY TO WHILE WE'RE SO STUCK BECAUSE WE REALLY DON'T KNOW THE FUNDING THAT'S GOING TO COME OUR WAY FROM THE STATE, COULD WE UTILIZE THAT FUNDING THAT WE ALREADY HAVE EARMARKED BUT DO IT OVER THE COURSE OF THE YEAR SO THAT IT'S MAYBE IT GOES A LITTLE BIT FURTHER FOR OUR TEACHERS AND STAFF.
I MEAN, I KNOW THAT'S NOT THE INTENTION OF THAT FUNDING, BUT BECAUSE WE ALREADY HAVE IT EARMARKED, IS THAT SOMETHING THAT I MEAN, I'M SURE STAFF I'M SURE EVERYONE LOVES TO GET THAT BIG KIND OF BONUS IN JANUARY, BUT WOULD IT BE MEANINGFUL IN A YEAR LIKE THIS TO SPREAD THAT OUT? I DON'T KNOW THE ANSWER, BUT JUST WHEN I LOOK AT WHEN I LOOK AT ANY MONEY THAT WE COULD, YOU KNOW, MAYBE UTILIZE IN A DIFFERENT WAY, IT'S JUST IT WAS THE WE DON'T HAVE MUCH FLEXIBILITY, BUT MAYBE THERE'S SOME FLEXIBILITY THERE.
IF THAT'S SOMETHING THAT--IT'S DEFINITELY SOMETHING THAT WE CAN DISCUSS.
SO IF THAT'S SOMETHING THAT THE BOARD IS INTERESTED IN US LOOKING AT, WE DEFINITELY CAN LOOK AT WHAT THAT LOOKS LIKE, AND I'M SURE AND YOU KNOW, THIS WE'RE VERY STUCK RIGHT NOW BECAUSE WE SHOULD HAVE HAD SOME TYPE OF COMMITMENT FROM THE STATE ON WHAT FUNDING WILL ACTUALLY LOOK LIKE NEXT YEAR.
SO I KNOW THAT ALL OF THESE QUESTIONS REALLY ARE GOING TO KIND OF BE MET IN A HYPOTHETICAL SPACE, BUT SHOULD WE HAVE A SPECIAL SESSION THAT IS BENEFICIAL FOR PUBLIC SCHOOLS ACROSS THE STATE? WILL WE BE ABLE TO REVISIT AND LOOK AT PERHAPS AN INCREASE IN TEACHER PAY, STAFF PAY IN THE FALL ONCE WE HAVE ONCE THOSE NUMBERS COME IN? SO THIS IS THIS IS KIND OF A STOPGAP BUDGET REALLY FOR US TO GET THROUGH THE SUMMER AND THEN HOPEFULLY WE'LL HAVE SOME MORE INFORMATION TO BE ABLE TO REVISIT WHAT THESE NUMBERS LOOK LIKE IN THE FALL.
IS THAT THE PLAN? YES, AND IT WILL, SO ANY ADDITIONAL MONEY THAT COMES FROM THE STATE IN A SPECIAL SESSION, THE FIRST THING WE WILL LOOK AT IS AMENDING THE COMPENSATION PLAN.
IT WILL DEPEND ON WHATEVER STRINGS COME WITH THE FUNDING.
SO WE DEFINITELY WOULDN'T WANT TO ASSUME THAT WE THAT WE CAN PROVIDE SOMETHING AND THEN NOT BE ABLE TO LATER, BUT THAT IS THE FIRST THING THAT WE WILL DO IF AND WHEN ADDITIONAL FUNDING IS PROVIDED.
ANY OTHER QUESTIONS ON THE COMPENSATION PLAN?
[01:20:04]
ONE THING THAT I DID NOT PUT ON THE SLIDE, BUT WE HAVE BEEN ABLE TO FIGURE OUT HOW TO ADD, IT WILL BE IN THE COMPENSATION PLAN DRAFT ONCE WE GET IT UPDATED FOR OUR WEBSITE IS A $10,000 EMPLOYER PAID BASIC LIFE INSURANCE POLICY AS WE GO THROUGH AND DO OUR BENCHMARKING FOR BENEFITS EVERY YEAR.THE $10,000 BASIC LIFE INSURANCE POLICY FOR ALL EMPLOYEES WOULD COST THE DISTRICT ABOUT $60,000.
SO WE AREN'T GOING TO NEED TO AMEND THE BUDGET TO DO THAT.
IT CAN BE ABSORBED IN THE COST THAT WE'VE ALREADY THAT WE'VE ALREADY PUT FORTH TOWARDS RAISES, BUT THAT WILL BE PART OF THE COMPENSATION PLAN THAT WE ASK YOU GUYS TO ADOPT.
YEAH, AND IT'S TEACHER RECRUITMENT VERSUS RETENTION, AND I NOTICED IN YOUR CHART, THE COMPENSATION, ONE OF THE PRIOR BAR CHARTS AS FAR AS MEDIAN VERSUS ABOVE MEDIAN PAY AND WE'RE ABOVE MEDIAN FOR THE LONGER TENURED TEACHERS AND ABOUT MEDIAN FOR NEW. YEAH.
I DON'T KNOW IF THIS QUESTION IS PARTICULARLY FOR BUT HOW DOES THAT FACTOR IN TO A GROWING DISTRICT WHEN WHEN RECRUITMENT IS STILL A BIG DEAL, A BIG ISSUE WHEN WE ARE AT MEDIAN, NOT NECESSARILY ABOVE MEDIAN LIKE WE ARE FOR LONGER TENURE, HOW DOES THAT FACTOR INTO THE OVERALL? NO, THAT'S A GOOD QUESTION. SO A FEW YEARS AGO, ACTUALLY, IT WAS IN 2019 AFTER HOUSE BILL THREE WAS PASSED, ONE OF THE REQUIREMENTS THAT THE STATE GAVE US WHEN THEY GAVE US THE ADDITIONAL MONEY THROUGH HB THREE WAS THAT WE HAD TO PROVIDE A CERTAIN PERCENTAGE OF THAT ADDITIONAL REVENUE TO TEACHER PAY, AND IT HAD TO BE FOCUSED ON MORE TENURED TEACHERS WITH THE GOAL OF REWARDING TEACHERS FOR STAYING IN THE CLASSROOM AND RECOGNIZING THEIR LONGEVITY.
SO WHAT WE DID AT THAT TIME WAS WE ACTUALLY BROADENED OUR TEACHER PAY SCALE, THE STEPS BETWEEN YEARS OF EXPERIENCE IN THE HIGHER-END SCALE, AND WE DID IT ON THE LONG END TO BASICALLY RECOGNIZE LONGEVITY FOR TEACHERS.
THAT WAS SOMETHING THAT NOT A LOT OF OTHER DISTRICTS DID AT THAT TIME.
WE KIND OF DID A COMBINATION OF BOTH.
WE SAID WE'RE GOING TO PROVIDE THE PERCENT INCREASE, BUT WE'RE ALSO GOING TO INCREASE THE TEACHER PAY SCALE ON THE LONG END, AND SO THIS IS SORT OF A REFLECTION OF THAT DECISION THAT WAS MADE IN 2019.
I WILL SAY WE ARE TEACHER PAY SCALE THAT WE'RE PROPOSING FOR NEXT YEAR IS A LITTLE BIT MORE COMPRESSED THAN IT WOULD HAVE BEEN HAD WE JUST KEPT THE SAME SCALE AND INCREASED IT BECAUSE WE WANTED TO TRY AND GET OUR STARTING TEACHER PAY UP A LITTLE BIT HIGHER, BUT WE COULDN'T AFFORD TO RAISE THE WHOLE PAY SCALE BY THAT MUCH. SO RATHER THAN KIND OF MOVING IT ALL AT THE SAME, WE SORT OF FLATTENED IT A LITTLE BIT, BUT I THINK THE BIGGEST THING TO POINT OUT HERE IS TEACHERS THAT HAVE BEEN WITH FRISCO FOR THE MAJORITY OF THEIR CAREER ARE MAKING MORE THAN OTHER DISTRICTS FOR THE SAME YEARS OF EXPERIENCE AND ARE MAKING MORE THAN SOMEBODY WHO WOULD BE COMING IN WITH THE SAME YEARS OF EXPERIENCE FROM OUT OF DISTRICT, AND THAT'S THAT WAS REALLY OUR GOAL IN TERMS OF RETENTION. SO WE WANT TO STAY COMPETITIVE FOR RECRUITMENT, BUT WE ALSO WANT TO RECOGNIZE THE LONGEVITY OF THE TEACHERS THAT STAY WITH FRISCO ISD.
HR IS NOT HERE TODAY TO BE ABLE TO CHIME IN, BUT DO YOU THINK I MISSED ANYTHING? OKAY. YES.
YEAH. ANY OTHER QUESTIONS ON THE COMPENSATION PLAN? OKAY, SO HERE IS WHAT THE BUDGET LOOKS LIKE.
SO YOU CAN SEE WE STARTED OUT WITH THE 622.7 MILLION OF REVENUE AVAILABLE FOR APPROPRIATION.
ALL OF THE CHANGES THAT I JUST DESCRIBED TO YOU LEADS US TO A $24.4 MILLION DEFICIT.
SO FUND BALANCE IS GOING TO BE OUR FIRST FIRST OPTION.
IF YOU LOOK AT OUR FUND BALANCE, THIS IS A BREAKDOWN OF IT.
SO WE HAD $249 MILLION IN GENERAL FUND BALANCE AT THE END OF LAST FISCAL YEAR.
[01:25:01]
THE PROJECTED DEFICIT FOR THE CURRENT FISCAL YEAR IS JUST UNDER $21 MILLION.THAT'S AFTER USING ESSER FUNDS AND THINGS LIKE THAT.
IT COULD BE A LITTLE BIT LESS THAN THAT.
THAT'S KIND OF THE MAXIMUM DEFICIT THAT I AM EXPECTING.
WE HAVE 28 MILLION-ISH IN FUND BALANCE ASSIGNMENTS, SO THAT'S ASSIGNMENTS FOR DIFFERENT THINGS, MONEY SET ASIDE FOR THOSE RETENTION INCENTIVES FOR THE CLASSROOM SUPPLY STIPENDS FOR CLAIMS AND JUDGMENTS, CONTINGENCIES, AND FOR JUST SOME OTHER KIND OF SMALL MISCELLANEOUS THINGS THAT WE NEED TO EARMARK FUND BALANCE FOR, AND THEN WE HAVE $150 MILLION INFORMAL TARGET FOR CASH FLOW.
BECAUSE IF YOU ALL REMEMBER, WE DON'T START GENERATING A SIGNIFICANT AMOUNT OF REVENUE UNTIL DECEMBER, JANUARY OF EVERY YEAR WHEN PROPERTY TAX BILLS COME DUE, AND SO WE HAVE TO GET THROUGH THE MAJORITY OF THE FIRST SEMESTER ON OUR FUND BALANCE BEFORE WE START BRINGING THE REVENUE BACK IN.
ABOUT 50.6 MILLION AVAILABLE FOR A RAINY DAY.
SO WITH THE PROPOSED DEFICIT FOR THIS COMING YEAR, THAT TAKES UP ABOUT HALF OF IT, AND WE WILL HAVE TO START LOOKING, DEPENDING ON WHAT THE LEGISLATURE COMES BACK AND DOES IN A POTENTIAL FUTURE SPECIAL SESSION, WE WILL HAVE TO START LOOKING AT HOW TO REBALANCE THAT $24 MILLION DEFICIT BECAUSE AT THIS RATE, WE COULD ONLY SUSTAIN IT WITH FUND BALANCE FOR ONE MORE YEAR.
I RECALL LAST IN WATCHING LAST YEAR'S WORKSHOP, THERE WAS A SIMILAR DEFICIT, YOU KNOW, LOW 20S, I THINK IT WAS, AND THEN YOU HAD A DISCUSSION ABOUT THERE BEING ABOUT A $10 MILLION OR SO WASH THAT USUALLY WORKS ITS WAY OUT.
WHAT DID YOU ALL ACTUALLY REALIZE NOW THAT WE'RE A YEAR LATER OF THAT? I MEAN HOW DID THAT PLAY OUT? SO THAT'S THE $20 MILLION PROPOSED PROJECTED DEFICIT NOW.
SO A COUPLE OF THINGS HAVE HAPPENED OVER THE COURSE OF THIS YEAR.
WE HAD A GOOD NUMBER OF POSITIONS THAT WENT UNFILLED DURING THE YEAR.
SOME OF THOSE POSITIONS WERE PART OF THOSE VACANT POSITIONS THAT I MENTIONED WHEN WE TALKED ABOUT THE COST SAVINGS, AND I SAID WE WERE ABLE TO ELIMINATE SOME VACANT POSITIONS, THAT WE COULD ABSORB THOSE RESPONSIBILITIES OTHER WAYS.
SOME OF THOSE WE'VE HIRED MIDYEAR.
THEY WEREN'T VACANT THE WHOLE YEAR, BUT THEY WERE VACANT A MAJORITY OF THE YEAR.
SOME OF THOSE WE EXPECT TO HIRE FOR THE UPCOMING YEAR.
SO WE HAD SOME VACANT POSITIONS THAT HELPED BRING THAT DEFICIT DOWN.
WE TYPICALLY WOULD SEE ABOUT A 1.5%.
1.5% IS PRETTY TYPICAL, I WOULD SAY, WITH THE COST SAVINGS NUMBERS, THIS SIX AND ONE HALF MILLION OF IDENTIFIED COST SAVINGS, THAT TAKES A LOT OF THAT 1.5% OUT.
A LOT OF WHAT WE DID WAS ELIMINATE THAT EXCESS THAT WE HAVEN'T BEEN SPENDING AND HAVEN'T GIVEN OUT.
SO WE'VE ELIMINATED A LOT OF THE WIGGLE ROOM THAT WE HAVE.
I DON'T EXPECT A $10 MILLION FLUCTUATION WITH THIS BUDGET.
THE FACT THAT THIS WAS THE FIRST, WHAT I'LL CALL NORMAL YEAR SINCE COVID AS WELL.
STUDENTS DIDN'T TRAVEL AS MUCH COMPETITION.
SO I THINK EVERY YEAR WE SEE THE RECOMMENDATIONS AND WE KNOW THAT ALL OF THESE ARE YOU KNOW, IT TAKES A LONG IT'S A GRUELING PROCESS FOR YOU ALL TO GET TO THE POINT THAT YOU'RE PRESENTING US ALL THESE RECOMMENDATIONS AND.
[01:30:06]
I NEVER WANT I NEVER WANT OUR DEPARTMENTS OR OUR CAMPUSES TO GO WITHOUT, ESPECIALLY WHEN WE HAVE SPECIAL POPULATIONS OF STUDENTS THAT WERE GROWING SO RAPIDLY.WE HAVE SPECIAL EDUCATION THAT HAS JUST EXPERIENCED TREMENDOUS GROWTH OVER THE LAST 3 OR 4 YEARS.
SO DO WE HAVE A, I SEE THESE RECOMMENDATIONS, BUT DO WE HAVE A SORT OF ANOTHER VERSION OF RECOMMENDATIONS SHOULD BUDGET MONEY COME THROUGH? WHERE ARE WE CUTTING AREAS THAT WE REALLY DO NEED TO BE FOCUSING ON THIS YEAR? AND IF SO, I KNOW THOSE AMENDMENTS WILL COME.
I'M JUST CONCERNED THAT WE'RE THAT LIKE GARRETT'S DEPARTMENT COULD NEED TEN MORE PARAS THAT WE'RE JUST NOT PUTTING IN THIS BUDGET BECAUSE WE'RE PRETTY LIMITED WITH OUR FUNDING RIGHT NOW, BUT SHOULD WE SEE THAT COME THROUGH IN THE FALL? DO WE HAVE A SECONDARY BUDGET OR A SECONDARY LIST OF RECOMMENDATIONS THAT COULD BE CONSIDERED LIKE A TIER TWO PRIORITY SHOULD THE FUNDING COME THROUGH? SO I WILL SAY WE SO FIRST OF ALL, NO, WE DON'T HAVE A SECOND LIST OF THINGS THAT WE WOULD IMMEDIATELY GO BACK TO AND ADOPT IF THE FUNDING WAS THERE AND ALL OF THE BUDGET OWNERS WORKED VERY HARD TO REALLY ANALYZE THE NEED BASED ON THE STUDENT POPULATION.
WE HAVE ADDED A SIGNIFICANT USING SPECIAL ED AS AN EXAMPLE.
WE'VE ADDED A SIGNIFICANT NUMBER OF SPECIAL ED STAFF OVER THE PAST SEVERAL YEARS.
IF YOU LOOK AT THE PAST FEW BUDGETS AND A LOT OF THAT WAS BASED ON GETTING US GETTING CASELOADS TO WHERE WE WANTED THEM TO BE PER PERSON AND THAT KIND OF THING. SO SOME OF THAT WAS CATCH UP AND NOT NECESSARILY ANNUAL GROWTH.
WE'RE AT THE POINT NOW WHERE WE'RE LOOKING AT ANNUAL GROWTH IN THOSE STUDENT POPULATIONS, AND SO WHAT IS RECOMMENDED TO YOU IS WHAT THE NEEDS WERE AS PRESENTED IN ORDER TO MANAGE THAT GROWTH.
SO WE WHAT WE DIDN'T DO WAS WE DIDN'T GO IN AND SAY WHAT ARE OTHER GREAT THINGS THAT WE COULD DO IN ADDITION TO WHAT WE'RE DOING NOW. WE LOOKED AT WHAT WHAT DO WE NEED TO ADD IN ORDER TO MAINTAIN CURRENT OPERATIONS, NOT SIGNIFICANTLY IMPACT THEM, JUST MAINTAIN CURRENT OPERATIONS.
SO THOSE ARE THOSE RECOMMENDATIONS.
SO THESE RECOMMENDATIONS INCLUDE WHAT WE NEED TO MAINTAIN.
YES. INCLUDING SPECIAL EDUCATION.
THANKS. KIM, IS IT POSSIBLE TO GET A LIST OF THE POSITIONS THAT WE'VE DECIDED NOT TO FILL AS WELL AS ANY THAT HAVE BEEN ELIMINATED EITHER DUE TO LACK OF ESSER FUNDING OR FOR SOME OTHER REASON? YES, I CAN GET YOU THAT, AND I CAN STICK IT IN HOME BASE.
LET ME WRITE THAT DOWN. THANK YOU, AND ARE ALL OF THESE POSITIONS THAT ARE BEING RECOMMENDED? IF YOU COULD FILL ALL OF THEM IN AUGUST, WOULD YOU DO SO? OR ARE THERE SOME FTES THAT ARE THEY'RE FOR THE YEAR AHEAD BUT WE MAY NOT NEED THEM UNTIL THE SPRING SEMESTER? THE ONLY POSITIONS THAT WE INTEND TO HOLD ON TO AND FILL AS NEEDED ARE THE PRE-K ONES AND LIKE I SAID, THAT'S WE WANT TO HAVE THOSE ALLOCATIONS AVAILABLE SO THAT AS STUDENTS ENROLL WE CAN MOVE VERY QUICKLY AND SETTING UP A NEW PRE-K CLASSROOM IF WE HAVE ONCE WE GET THAT ENROLLMENT, BUT PRE-K IS ONE OF THOSE WHERE WE JUST CAN'T PREDICT THAT THEY'RE COMING UNTIL THEY COME, AND SO THE NINE THE STAFFING FOR THE NINE PRE-K CLASSROOMS IS BASED ON WHAT WE KNOW ARE GOING HOW MANY STUDENTS WE KNOW ARE GOING TO BE ENROLLED IN THE FALL.
THE REST OF THEM, WE WOULD HIRE IMMEDIATELY.
OKAY, I'M GOING TO MOVE ON NOW TO THE DEBT SERVICE FUND AND CHILD NUTRITION FUND, BUT I'M GOING TO PAUSE ONE LAST TIME FOR ANY GENERAL FUND QUESTIONS BEFORE WE MOVE ON, SHIFT GEARS. OKAY, SO THE DEBT SERVICE FUND AND CHILD NUTRITION FUND ARE ARE MUCH MORE STRAIGHTFORWARD AND KIND OF EASY TO TALK ABOUT THAN THE GENERAL FUND.
ALL OF OUR REVENUE FROM FOR DEBT SERVICE COMES FROM PROPERTY TAXES.
SO WE LOOK AT PROPERTY VALUES.
EVERY YEAR IN APRIL, WE RECEIVE ESTIMATED CERTIFIED ESTIMATES OF PROPERTY VALUE.
[01:35:03]
SERVICE FUND BUDGET FOR THE UPCOMING YEAR.SO YOU CAN SEE HERE WE CALL THESE T2 ASSESSED VALUES.
T2 IS JUST THE COMPTROLLER'S LANGUAGE.
THAT'S THE SPECIFIC VALUE THAT WE USE THAT IS CERTIFIED TO THE CONTROLLER EVERY YEAR.
SO FOR THE 22-23 FISCAL YEAR, IT'S THE 2022 TAX YEAR.
SO WE ADDED 15.7% IN PROPERTY VALUE FROM 21 TO 22.
WE EXPECT TO ADD AN ADDITIONAL 11.6% BASED ON PRELIMINARY CERTIFIED ESTIMATES FROM 22 TO 23.
SO YOU CAN SEE OUR TAX BASE HAS GROWN TO OVER $60 BILLION, AND THEN YOU CAN SEE WE ALWAYS JUST TO BE CONSERVATIVE PROJECT CONTINUED GROWTH BUT AT A DECLINING RATE. SO THESE ARE JUST PRETTY STANDARD PERCENTAGES THAT WE PLUG IN EIGHT, FIVE AND THREE.
HISTORICALLY, THE PAST FEW YEARS IT'S BEEN MORE THAN 8%.
I'VE ALSO INCLUDED I JUST THINK THIS IS INTERESTING, THE NEW CONSTRUCTION COMPARED TO APPRECIATION OF EXISTING PROPERTY WHEN YOU LOOK AT VALUE GROWTH.
THIS IS GROWTH IN BILLIONS OF DOLLARS AND YOU CAN SEE THE PROPORTION OF IT RELATED TO NEW CONSTRUCTION VERSUS JUST APPRECIATION OF EXISTING PROPERTY AND YOU CAN SEE IN 2022, THIS IS KIND OF WHAT WE ALL FELT, RIGHT? THE APPRECIATION OF EXISTING PROPERTY CONTINUE, YOU KNOW, SIMILAR NEW CONSTRUCTION GROWTH AS TO THE PAST SEVERAL YEARS, BUT THIS APPRECIATION WAS JUST SOMETHING WE HADN'T EXPERIENCED RECENTLY.
OUR DEBT TAX RATE HAS BEEN $0.27 AND WE MADE A COMMITMENT BACK IN 2018 WHEN WE HAD OUR LAST TREE AND WE LOWERED THE DEBT RATE TO $0.27, WE MADE A COMMITMENT TO HOLD IT AT $0.27 FOR AS LONG AS POSSIBLE.
IF YOU REMEMBER BACK THEN, WE SAID WE THOUGHT IT WOULD BE 2 TO 5 YEARS.
WELL, WE'VE HIT FIVE YEARS, AND AS OF RIGHT NOW, BASED ON PROPERTY VALUE GROWTH AND PROJECTED FUTURE PROPERTY VALUE GROWTH, THAT 27 CENT TAX RATE WILL PAY OFF THE DEBT THAT WE HAVE.
STILL USING SOME OF THE TRS FUNDS THAT WE GET BACK FROM THE CITY TO HELP PAY OFF THAT DEBT.
WE'VE BEEN HAVING TO RELY ON THOSE SINCE 2018, IN ADDITION TO SOME DEBT SERVICE FUND BALANCE, AND SO WE'RE STILL HAVING TO RELY ON THEM, BUT ACTUALLY BECAUSE OF PROPERTY VALUE GROWTH, WE'RE RELYING ON THEM TO A LESSER EXTENT THAN WE HAVE IN THE PAST FEW YEARS.
SO THIS GRAPH JUST SHOWS YOU OUR CURRENT AND PROJECTED FUTURE DEBT PAYMENTS.
REMEMBER I SAID WE'RE PRETTY MUCH AT THE END OF THE BOND PROGRAM, MEANING WE DON'T REALLY HAVE A SIGNIFICANT PROJECTED FUTURE DEBT PAYMENTS AND OUR DEBT PROFILE RIGHT NOW IS PRETTY FLAT.
SO THE RED BARS ARE DEBT PAYMENTS OVER THE COURSE OF THE NEXT SEVERAL YEARS.
THE DEBT CAPACITY, SO THE AMOUNT OF DEBT THAT WE COULD PAY AT A 27 CENT TAX RATE USING SOME OF THOSE OTHER PROVISIONS THAT I TALKED ABOUT, SOME OF THE TIFF REVENUE AND SOME DEBT SERVICE FUND BALANCE THAT WE'VE HAD, YOU CAN SEE THE DARK BLUE KIND OF BEHIND THIS.
IT'S JUST EVEN WE CAN CONTINUE TO MAINTAIN THIS DEBT PROFILE WITH A 27 CENT DEBT TAX RATE.
STATE LAW ALLOWS US TO GO UP TO A 50 CENT TAX RATE FOR DEBT SERVICE.
SO YOU CAN SEE THE CAPACITY FOR FUTURE DEBT THAT WE COULD COVER WITH 50 CENTS.
WE'RE VERY FORTUNATE TO HAVE THE PROPERTY VALUE PROPERTY TAX BASE THAT WE HAVE SO THAT WE CAN MAINTAIN SUCH A LOW TAX RATE, ESPECIALLY AS A DISTRICT THAT'S STILL GROWING. SO THAT'S JUST REALLY AWESOME.
YOU CAN SEE HERE THE TOTAL PRINCIPAL AND INTEREST PAYMENTS THAT WERE THAT WE'RE EXPECTING OVER THE NEXT FIVE YEARS, AND SO LIKE I SAID, THE 27 CENT DEBT TAX RATE WILL GET US THERE. WE'LL PAY OFF THE DEBT THAT WE CURRENTLY HAVE.
SO THIS IS JUST A LOOK AT THE DEBT SERVICE FUND BUDGET.
WE'RE LOOKING AT A 16.2% INCREASE IN LOCAL TAX COLLECTIONS.
WE'RE LOOKING AT A SIGNIFICANT INCREASE, $2.2 MILLION IN INVESTMENT EARNINGS BECAUSE LIKE I SAID, THE MARKET IS IS COMING BACK AND WE'RE ACTUALLY GENERATING A RETURN ON OUR INVESTMENTS, AND WE'RE ALSO LOOKING AT NOT HAVING TO USE 100% OF THE TIF REVENUE THAT WE GET BACK FROM THE CITY.
[01:40:05]
SO THAT'S WHY YOU SEE THE DECREASE THERE.SO TIF REVENUE, IF YOU GUYS REMEMBER, CAN BE USED FOR PROJECTS WITHIN THE TIF ZONE.
SO ANY SCHOOLS THAT WE HAVE BUILT THAT ARE PART OF THE TIF ZONE, WE CAN USE THOSE FUNDS TO EITHER CONSTRUCT THOSE BUILDINGS TO PAY OFF DEBT RELATED TO THE CONSTRUCTION OF THOSE BUILDINGS OR TO PAY FOR MAINTENANCE OF THOSE BUILDINGS, AND SO THAT MONEY WILL STILL GO TOWARDS THOSE BUILDINGS.
IT JUST WON'T HAVE TO GO TOWARDS THE DEBT RELATED TO THOSE BUILDINGS.
SO THAT'S WHERE THE DECREASE IS THERE, AND THEN YOU CAN SEE THE PRINCIPAL AND INTEREST PAYMENTS, AND WE'VE REDUCED OUR EXPECTATION OF OTHER DEBT FEES JUST BASED ON THE PAST COUPLE OF YEARS, WHAT WE'VE NEEDED TO SPEND ON THE COST OF ISSUANCE OF NEW BONDS , AND SO WE'RE PROPOSING A BALANCED BUDGET FOR THE DEBT SERVICE FUND FOR THE COMING YEAR AND I'VE ALSO PROVIDED A FINANCIAL PLAN, JUST LIKE I DO FOR THE GENERAL FUND IN YOUR PACKET.
SO YOU CAN SEE THE ONGOING FINANCIAL PLAN FOR THE DEBT SERVICE FUND, AND AGAIN, YOU'LL YOU'LL ADOPT THE TAX RATE FOR BOTH THE M&O AND THE DEBT SERVICE FUND IN SEPTEMBER.
ANY QUESTIONS ON DEBT SERVICE? OKAY, MOVING ON TO CHILD NUTRITION, WHICH IS YOUR LAST FUND THAT YOU'RE REQUIRED TO ADOPT THE BUDGET FOR.
THIS IS ANOTHER FUND THAT WE TYPICALLY TRY TO ADOPT A BALANCED BUDGET FOR.
IT'S NOT SUBJECT TO THE SCHOOL FUNDING FORMULAS.
WE DON'T COLLECT PROPERTY TAXES FOR THIS.
THE CAFETERIA SALES, WE'RE REDUCING THE BUDGET FOR THOSE JUST A LITTLE BIT.
WELL, 13.4%, $2.5 MILLION, WE'RE REDUCING THE BUDGET FOR THAT.
THE 2023 ADOPTED BUDGET, IF YOU REMEMBER THE LAST COUPLE OF YEARS DURING COVID, WE WERE ABLE TO GET A WAIVER FROM THE USDA TO PROVIDE FREE MEALS TO ALL STUDENTS, REGARDLESS OF ECONOMIC STATUS, REGARDLESS OF WHETHER OR NOT THEY WERE ELIGIBLE FOR FREE OR REDUCED MEALS, AND SO THAT SHIFTED ALMOST ALL OF OUR REVENUE FROM CAFETERIA SALES TO FEDERAL GRANT, AND SO WHEN IT CAME TIME TO ADOPT THE BUDGET FOR THE 22-23 SCHOOL YEAR, WE HAD TO LOOK BACK AT PARTICIPATION RATES IN 2018-2019, WHICH WAS THE LAST YEAR WE HAD PRE-COVID DATA FOR AND TRY TO ANTICIPATE WHAT THAT REVENUE WAS GOING TO LOOK LIKE BASED ON THE STUDENT POPULATION THAT WE HAD POST COVID AND SO IT REALLY WAS AN ESTIMATE, AND SO NOW WE'VE GOT A YEAR'S WORTH OF DATA BASED ON ACTUAL PARTICIPATION PARTICIPATION RATES IN THOSE PROGRAMS AND BASED ON ACTUAL SALES IN THE CAFETERIAS WITH THIS CURRENT STUDENT POPULATION , AND SO WE'RE JUST ADJUSTING OUR BUDGET ACCORDINGLY.
WE ARE ANTICIPATING A $26.5 MILLION REVENUE FOR APPROPRIATION FOR THE CHILD NUTRITION FUND, AND YOU CAN SEE THIS IS HOW WE PROPOSE TO SPEND IT. THE MAJORITY OF THE MONEY IN THE CHILD NUTRITION FUND GOES TOWARDS PAYROLL FOR STAFF WHO WORK IN THE CAFETERIA AND CHILD NUTRITION PROGRAM AS WELL AS FOOD.
AGAIN, THE SAME THING THAT I JUST SAID ABOUT REVENUE IS TRUE FOR EXPENDITURES AS WELL.
WE ALSO, TOWARDS THE END OF LAST SCHOOL YEAR, 21-22, STARTED TO SEE THOSE SPIKES IN PRICES RELATED TO INFLATION FOR THINGS, FOR FOOD, PAPER PRODUCTS, THOSE KINDS OF THINGS AND SO WE BASED OUR 2023 BUDGET ON THOSE INFLATIONARY COSTS AS WELL AS.
PROJECTED PARTICIPATION BASED ON THE 2018-2019 SCHOOL YEAR, AND SO THIS IS ESSENTIALLY US TRUING UP THOSE PROPOSED EXPENSES BASED ON THIS LAST YEAR'S WORTH OF ACTUAL SPENDING, AND THEN THE PAYROLL BUDGET IS PROJECTED TO INCREASE BASED ON THE COMPENSATION PLAN THAT WE PRESENTED BEFORE.
SO EVEN THOUGH THE CHILD NUTRITION FUND IS STANDALONE AND THEY PAY THEIR OWN EMPLOYEES WITH REVENUE FROM THE PROGRAM, WE STILL USE THE SAME COMPENSATION PLAN FOR THOSE STAFF.
[01:45:01]
THE CHILD NUTRITION PROGRAM ALSO HAS A FUND BALANCE CAP, MEANING IF THEY EXCEED THE FUND BALANCE, I THINK IT'S THREE MONTHS WORTH OF EXPENDITURES.IF THEY EXCEED THAT CAP, THEY HAVE TO HAVE A PLAN TO SPEND IT DOWN.
SO THE HE PROGRAM MANAGERS HAVE BEEN LOOKING AT EQUIPMENT THAT CAN BE REPLACED AND THINGS LIKE THAT, AND THEY'VE DONE SOME OF THAT OVER THE COURSE OF THIS YEAR. THEY'LL DO SOME MORE NEXT YEAR.
THEY'RE ALSO USING SOME OF THAT TO HELP PROVIDE THE RAISES AND THINGS LIKE THAT.
SO THE DEFICIT BUDGET IS ESSENTIALLY JUST BRINGING DOWN FUND BALANCE TO GET US BACK BELOW THAT CAP.
OKAY, SO THOSE ARE THE THREE BUDGETS.
NEXT STEPS, THE PUBLIC HEARING WILL BE ON JUNE 12TH.
ADOPTION WILL BE IN AUGUST OR SEPTEMBER.
ALL OF THE INFORMATION THAT I JUST PRESENTED IS GOING TO BE ON THE DISTRICT'S WEBSITE ON THE FINANCIAL TRANSPARENCY PAGE, INCLUDING THIS PRESENTATION LINKS TO THE HANDOUTS THAT WERE LINKED THROUGHOUT THE PRESENTATION, AS WELL AS THE NOTICE OF PUBLIC HEARING.
SO THAT CONCLUDES THE BUDGET PORTION OF THE WORKSHOP.
DO WE HAVE ANY ADDITIONAL QUESTIONS THAT YOU GUYS WOULD LIKE ME TO ANSWER OR ANY ADDITIONAL INFORMATION THAT YOU GUYS WOULD LIKE ME TO GET FOR YOU? KIM, I HAD A COUPLE OF AREAS THAT I WANTED TO GET A LITTLE MORE EXACT NUMBERS IN TERMS OF WHAT IS BUDGETED FOR THAT SPECIFICALLY RELATED TO CURRICULUM RELATED SOFTWARE TRAINING AND DEVELOPMENT AS WELL AS CONSULTING FEES.
ANY OTHER QUESTIONS ABOUT THE BUDGET? ANYBODY? OKAY.
SO WE'RE JUST CHANGING ROOMS. WE'RE NOT GOING INTO CLOSED SESSION.
SO, BOARD, WE WILL MOVE TO THE TRAINING ROOMS.
* This transcript was compiled from uncorrected Closed Captioning.