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AND I WOULD LIKE TO CALL TO ORDER A BUDGET WORKSHOP FOR THE FRISCO INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES.WE HAVE BOARD TRUSTEES PRESENT.
[1. Discussion regarding the Budget ]
AND THAT IS MRS. KIMBERLY SMITH.>> MORNING. WORKSHOP NUMBER 4, YOU'RE READY? [LAUGHTER] WE HAVE A LOT TO COVER THIS MORNING.
I'M GOING TO GO BACK THROUGH THE BUDGETED ADOPTION TIMELINE BECAUSE WE ARE NEARING THE END.
THEN BEFORE WE GET DEEPER INTO THE GENERAL FUND BUDGET, BECAUSE I KNOW THAT'S WHERE WE'RE GOING TO SPEND THE MOST OF OUR TIME TALKING, WE'RE GOING TO QUICKLY GO THROUGH THE PRELIMINARY BUDGET FOR THE DEBT SERVICE FUND AND THE CHILD NUTRITION FUND.
BECAUSE REMEMBER, YOU GUYS ARE REQUIRED TO ADOPT ALL THREE BUDGETS, AND SO ALL THREE WILL BE COMING TO YOU IN MAY TO VOTE ON.
THE DEBT SERVICE AND CHILD NUTRITION FUND ARE MUCH MORE STRAIGHTFORWARD AND EASY TO TALK ABOUT.
WE'RE GOING TO GET THROUGH THOSE FIRST SO THAT WE CAN SPEND THE MAJORITY OF OUR TIME TALKING ABOUT THE GENERAL FUND BUDGET.
I ALSO AM ABLE TO SHARE THE FINANCIAL BENCHMARKING WITH YOU NOW THAT I WAS UNABLE TO SHARE AT THE LAST WORKSHOP BECAUSE TEA FINALLY PUBLISHED THAT INFORMATION FROM THE 22/23 FISCAL YEAR.
THEN WE WILL GET INTO SOME FINAL RECOMMENDATIONS ON THE GENERAL FUND BUDGET AND OPEN IT UP FOR DISCUSSION ABOUT NEXT STEPS.
AS A REMINDER, IN THE LAST FEW WORKSHOPS, WE'VE BEEN WORKING WITH A POTENTIAL $23 MILLION DEFICIT.
I'LL GO THROUGH CHANGES THAT HAVE BEEN MADE TO THAT LATER ON IN THE PRESENTATION.
BUT JUST AS A REMINDER, WE'VE BEEN TALKING ALL SEMESTER REALLY ALL YEAR SINCE WE STARTED THIS PROCESS ABOUT LOOKING FOR WAYS TO IDENTIFY AS MUCH SAVINGS AS POSSIBLE WITHOUT IMPACTING INSTRUCTION OR THE WAY WE OPERATE OUR STUDENT OPPORTUNITY MODEL, THE SUPPORT THAT WE PROVIDE TO OUR STUDENTS, THAT THING.
THE GOAL IN THIS BUDGET PROCESS WAS TO ADOPT A MANAGEABLE DEFICIT WITH THE UNDERSTANDING THAT OPTIONS FOR BALANCING THE BUDGET WILL CONTINUE TO BE EXPLORED, ESPECIALLY IF THE LEGISLATURE DOES NOT PROVIDE ADEQUATE FUNDING IN THE 89TH SESSION THAT BEGINS IN THE SPRING OF 2025.
THEN LASTLY, WE'VE BEEN TALKING ABOUT CONSIDERATION FOR AN M&O TAX RATE INCREASE OF A LITTLE OVER THREE CENTS TO HELP PAY FOR A RAISE.
AS A REMINDER ABOUT OUR BUDGET ADOPTION TIMELINE, WE'RE ON AN ACCELERATED TIMELINE, LOOKING TO VOTE ON THE BUDGET ON MAY 15TH.
WE'RE STILL ON TRACK TO MEET THAT TIMELINE.
TODAY, I'M GOING TO GO OVER, LIKE I SAID, THE BENCHMARKING AND THE FINAL RECOMMENDATIONS FOR ALL THREE BUDGETS.
PRELIMINARY CERTIFIED VALUES FROM OUR COUNTY APPRAISAL DISTRICTS ARE GOING TO BE AVAILABLE TO US ON APRIL 30TH.
I'VE SAID THIS BEFORE, BUT JUST AS A REMINDER, WE HAVE TO HAVE THAT INFORMATION IN ORDER TO FINALIZE BOTH OUR GENERAL FUND AND OUR DEBT SERVICE FUND BUDGETS.
THAT WILL BE A VERY QUICK TURNAROUND BECAUSE THEN WE'VE GOT TO PUBLISH THE NOTICE OF PUBLIC HEARING, WHICH INCLUDES THAT INFORMATION IN THE NEWSPAPER BY MAY 5TH IN ORDER TO MEET THE TIMELINE TO VOTE ON MAY 15TH.
YOU GUYS WILL RECEIVE IN HOME BASE WHAT I CALL A NEAR FINAL BUDGET THAT'S THE WHOLE OFFICIAL BUDGET DOCUMENT THAT TIES OUT TO WHAT'S GOING TO BE PUBLISHED IN THE NEWSPAPER.
YOU GUYS WILL RECEIVE THAT BY MAY 2ND OR MAY 3RD.
THEN OUR PUBLIC HEARING WILL BE HELD ON MAY 13TH AT IRREGULAR BOARD MEETING, AND THEN A SPECIAL MEETING TO VOTE ON THE BUDGET ON MAY 15TH.
THEN ONCE THE BUDGET IS FINALIZED, THEN WE WILL BEGIN BUILDING OUR BUDGET BOOK AND ALL OF THE MATERIALS THAT GO ALONG WITH THAT.
LIKE I SAID, I WANT TO JUMP INTO THE DEBT SERVICE FUND AND THE CHILD NUTRITION FUND SO THAT WE CAN GET THOSE OUT OF THE WAY AND SPEND THE MAJORITY OF OUR TIME ON OUR GENERAL FUND AND THOSE RECOMMENDATIONS.
OUR DEBT SERVICE FUND, THIS CHART THAT YOU SEE HERE IS OUR DEBT CAPACITY.
>> LET ME SEE IF YOU'RE ON MUTE.
DEBT CAPACITY BASICALLY IS HOW MUCH DEBT CAN WE AFFORD TO ISSUE AT EITHER OUR CURRENT 27 CENTS TAX RATE OR THE MAXIMUM DEBT SERVICE TAX RATE OF 50 CENTS.
WE HAVEN'T BEEN ANYWHERE NEAR THAT MAXIMUM DEBT TAX RATE FOR AS LONG AS I'VE KNOWN OR AS LONG AS I'VE BEEN HERE, BUT THAT IS THE MAXIMUM TAX RATE ALLOWED BY LAW,
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SO I'D LIKE TO SHOW WHAT OUR CAPACITY IS THERE.WE ARE AT THE TAIL END OF OUR 2018 BOND PROGRAM.
WE ARE ABOUT TO ISSUE THE LAST LITTLE BIT OF BONDS FROM OUR 2014 BOND PROGRAM.
THEN WE DO HAVE, I THINK $32 MILLION LEFT IN THE 2018 BOND PROGRAM THAT WILL REMAIN UNISSUED UNTIL WE DETERMINE THAT WE NEED THAT MONEY FOR A PROJECT.
BECAUSE WE'RE AT THE TAIL END OF THE BOND PROGRAM, YOU SEE THERE'S NO PROJECTED FUTURE DEBT PAYMENTS EXCEPT FOR A LITTLE TINY BIT THAT WE'RE ACTUALLY GOING TO ISSUE NEXT WEEK.
WE ARE IN THE PROCESS OF DEVELOPING A PROPOSAL FOR A 2024 BOND PROGRAM.
OUR BOND COMMITTEE ACTUALLY MET LAST NIGHT TO GO THROUGH THE RECOMMENDED PROJECTS.
THAT RECOMMENDED BOND PROGRAM WILL BE PRESENTED TO THE BOARD IN AUGUST.
WHAT YOU'RE SEEING FOR OUR DEBT SERVICE FUND RIGHT NOW, IS ASSUMING THAT THERE IS NO FUTURE DEBT, ESSENTIALLY, THAT THERE'S NO 2024 BOND PROGRAM.
WE'RE NOT PROJECTING WHAT THE DEBT PAYMENTS WOULD BE BECAUSE THAT BOND PROGRAM WOULD HAVE TO GO TO VOTERS AND PASS.
AS OF THIS MOMENT RIGHT NOW, THE DEBT SERVICE BUDGET IS WHAT IT WOULD BE IF WE DON'T ISSUE ANY MORE DEBT BEYOND THE LITTLE BIT THAT WE'RE ISSUING NEXT WEEK, WHICH IS WHY YOU CAN SEE THAT OUR CAPACITY IS SIGNIFICANT.
WE HAVE PLENTY OF ROOM WITHIN THE 27 CENT DEBT TAX RATE TO CONTINUE TO SERVICE THE DEBT THAT WE HAVE OUTSTANDING RIGHT NOW.
THAT'S GOOD. THAT GIVES US A LOT OF OPTIONS.
I'VE PUT ON THE SCREEN FOR YOU THE PRINCIPAL AND INTEREST PAYMENTS THAT ARE ON OUR BOOKS RIGHT NOW FOR THE NEXT FIVE YEARS.
JUST AGAIN AS A REMINDER, THESE PRINCIPAL AND INTEREST PAYMENTS DO NOT INCLUDE THE MONEY THAT WILL BE SOLD NEXT WEEK OR ANY PROJECTED PAYMENTS FOR FUTURE DEBT THAT WILL BE ISSUED IF A 2024 BOND PROGRAM PASSES.
I'M GOING TO MOVE MARK OUT OF THE WAY REAL QUICK, SO YOU CAN READ THAT.
THIS IS WHAT OUR PROPOSED DEBT SERVICE FUND BUDGET LOOKS LIKE AS OF TODAY.
ONCE WE GET TO THE POINT WHERE WE'RE RECOMMENDING A 2024 BOND PROGRAM, AND IF THE BOARD CALLS FOR THAT PROGRAM TO GO TO THE VOTERS, THEN WE WILL AMEND OUR DEBT SERVICE FUND ACCORDINGLY.
THE CURRENT 2024 ADOPTED BUDGET FOR THE DEBT SERVICE FUND WAS A BALANCED BUDGET.
WE DID NOT, IF YOU REMEMBER, USE ALL OF OUR ANTICIPATED TIRZ REVENUE IN THE DEBT SERVICE FUND THIS YEAR BECAUSE WE WERE AT THE END OF OUR BOND PROGRAM AND WE DIDN'T NEED ALL OF IT.
THE REMAINDER OF THAT IS GOING INTO THE CAPITAL PROJECTS FUND TO HELP COVER PROJECT COSTS THAT INFLATIONARY COSTS FROM OUR 2018 BOND PROGRAM.
THAT HAS HELPED OUT THERE THIS YEAR.
NEXT YEAR, ASSUMING AGAIN THAT WE DON'T ISSUE ANY NEW DEBT, WE WILL NOT NEED ANY TIRZ REVENUE TO HELP US SERVICE DEBT FOR THE 2025 FISCAL YEAR.
AGAIN, ASSUMING THAT WE DON'T HAVE A BOND PROGRAM AND WE DON'T ISSUE ANY NEW DEBT.
LIKE I SAID, THIS WILL CHANGE.
WELL, LET ME BACK UP A SECOND.
THERE'S ALSO A NEW FIGURE IN HERE FOR STATE REVENUE THAT YOU GUYS HAVEN'T SEEN BEFORE.
WHEN THE STATE LOWER OR INCREASED THE HOMESTEAD EXEMPTION FROM 40000-100,000 THEY INSTITUTED A HOLD HARMLESS CALCULATION TO GIVE US SOME HELP ON OUR DEBT SERVICE SIDE TO MAKE SURE THAT WE COULD CONTINUE TO COLLECT THE REVENUE THAT WE WOULD HAVE COLLECTED HAD THAT HOMESTEAD EXEMPTION NOT INCREASED, SO IT'S CALLED ADDITIONAL STATE AID FOR THE HOMESTEAD EXEMPTION.
THAT TURNED OUT TO BE ABOUT $12 MILLION.
THE CALCULATION FOR THAT WHEN WE DID THE BUDGET LAST YEAR WAS NOT FINALIZED, WE HONESTLY HAD NO IDEA WHAT THAT CALCULATION WAS GOING TO LOOK LIKE.
THE TEA HAS WORKED THROUGH THAT OVER THE COURSE OF THE YEAR, AND WE NOW KNOW THAT THAT LOOKS TO BE ABOUT $12 MILLION FOR FRISCO.
THAT IS HELPING US OUT IN OUR DEBT SERVICE FUND AS WELL.
YOU CAN SEE HERE OUR LOCAL TAX REVENUE AT $0.27 PLUS A LITTLE BIT OF INVESTMENT EARNINGS PLUS THAT ADDITIONAL STATE AID FOR THE HOMESTEAD EXEMPTION GIVES US MORE THAN ENOUGH MONEY TO COVER THE PROJECTED PRINCIPAL AND INTEREST PAYMENTS FOR NEXT YEAR, ASSUMING NO NEW DEBT IS ISSUED.
THIS BUDGET WILL BE UPDATED AFTER APRIL 30, WE PLUGGED IN $4 BILLION OF TAXABLE VALUE GROWTH TO ESTIMATE LOCAL TAX REVENUE.
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I THINK THAT'S A PRETTY SAFE ASSUMPTION, BUT WE WILL REFINE THAT ONCE WE GET PRELIMINARY CERTIFIED ESTIMATES FROM OUR APPRAISAL DISTRICTS.ALSO, TIRZ REVENUE THAT'S NOT USED TO FINANCE DEBT OR THAT'S NOT NEEDED ONCE WE LOOK AT A 2024 BOND PROGRAM.
IF WE NEED ANY OF THAT TIRZ REVENUE TO HELP FINANCE DEBT FROM A NEW BOND PROGRAM, THEN THIS BUDGET CAN BE AMENDED TO INCLUDE THAT TIRZ REVENUE.
IF NOT, IT CAN GO INTO OUR CAPITAL PROJECTS FUND TO HELP US FINISH OUT THE 2018 BOND PROGRAM AND FINANCE ANY INTERMEDIATE COSTS BETWEEN THE END OF THAT PROGRAM AND THE START OF THE NEW ONE, OR WE'LL TALK ABOUT LATER, IT COULD POTENTIALLY HELP US OFFSET SOME OPERATING COSTS TO MANAGE OUR FACILITIES THAT ARE WITHIN THE TIRZ ZONE.
WE TALKED ABOUT THAT A LITTLE BIT AT THE LAST WORKSHOP AS WELL.
>> EMILY, CAN I ASK YOU QUESTION?
>> HOLD HARMLESS FUNDS? DO THOSE HAVE A SUNSET?
>> WOULD IT TAKE LEGISLATIVE ACTION IN ORDER TO SUNSET?
>> BUT THERE'S NOTHING AUTOMATIC THAT YOU KNOW?
>> NOT THAT I KNOW OF. TO BE HONEST, THIS ONE IS STILL A LITTLE BIT NEW TO ME.
BECAUSE WE HAVEN'T RECEIVED THEM IN THE PAST.
WE RECEIVED A LITTLE BIT LAST YEAR, BUT THIS BIG NUMBER IS DEFINITELY NEW TO ME.
WE'RE WATCHING IT, BUT I AM NOT AWARE OF ANYTHING THAT WOULD SUNSET IT UNLESS IT'S LEGISLATIVE ACTION.
>> KIM, I HAD A QUESTION ABOUT THE TOURIST REVENUE.
UP UNTIL NOW, WE'VE ONLY BEEN USING IT FOR DEBT SERVICE, IS THAT CORRECT OR NOT CORRECT?
>> THAT IS CORRECT. BEFORE I WAS CFO HERE, THERE WERE SOME YEARS WHERE WE DID NEED TO USE IT FOR ACTUAL CAPITAL PROJECTS, BUT IT HAS ALWAYS ONLY BEEN USED TO EITHER SERVICE DEBT FOR NEW FACILITIES OR TO DIRECTLY HELP PAY FOR NEW FACILITIES.
>> IS THAT JUST SOMETHING THAT THE DISTRICT DOES? IS THAT BY LAW, OR IN OTHER WORDS, ARE THERE ANY RESTRICTIONS TO THAT TIRZ REVENUE?
>> THERE ARE RESTRICTIONS TO THE REVENUE.
THE WAY THAT THE TIRZ WORKS IS IT IS THE MONEY THAT COMES BACK TO US AFTER WE SATISFY ANY PARTNERSHIP AGREEMENTS WITH THE OTHER MEMBERS OF THE TIRZ ZONE, TYPICALLY THE CITY.
THE MONEY THAT COMES BACK TO US IS REQUIRED TO BE USED TO EITHER FINANCE NEW FACILITIES OR IMPROVEMENTS TO FACILITIES, WHICH COULD EITHER BE DIRECTLY PAYING FOR THOSE CAPITAL PROJECTS OR FINANCING THE DEBT ASSOCIATED WITH THOSE CAPITAL PROJECTS.
WE DO HAVE AN OPTION TO AMEND THE FINANCING PLAN FOR THE TIRZ.
THERE'S A LOT OF PAPERWORK THAT HAS TO BE DONE IN ORDER FOR US TO USE IT FOR OPERATIONS.
BUT WE DO HAVE AN OPTION TO AMEND THE FINANCING PLAN FOR THE TIRZ TO ALLOW US TO HELP PAY FOR SOME OF THE GENERAL FACILITIES AND MAINTENANCE COSTS.
NOT STAFF, NOT TEACHER SALARIES, THAT THING, BUT ESSENTIALLY THE OPERATING COST TO MAINTAIN THOSE FACILITIES.
WE CAN AMEND THE FINANCING PLAN TO THE TIRZ TO LOOK AT INCLUDING SOME OF THOSE.
THAT WOULD HELP GIVE US SOME RELIEF IN OUR OPERATING FUND.
WHAT WE CAN'T DO IS JUST TRANSFER ALL OF THAT MONEY INTO THE OPERATING FUND AND USE IT HOWEVER WE WANT.
>> ANY OTHER QUESTIONS ON THE DEBT SERVICE FUND? LIKE I SAID, THIS IS A PRELIMINARY BUDGET.
IT WILL CHANGE SLIGHTLY ONCE WE GET TAXABLE VALUES, BUT YOU WON'T SEE ANYTHING SIGNIFICANTLY DIFFERENT WHEN YOU GET YOUR NEAR FINAL DEBT SERVICE FUND BUDGET.
WE WILL AMEND IT AGAIN IN AUGUST, DEPENDING ON THE 2024 BOND PROGRAM PROPOSAL.
THIS ONE IS EVEN MORE STRAIGHTFORWARD BECAUSE IT IS RELATIVELY CLOSE TO THE SAME BUDGET THAT WE ADOPTED IN 2024.
ALL THE BUDGET CHANGES IN THIS FUND WERE ESSENTIALLY BASED ON ACTUAL PROJECTIONS FOR THE 2023 24 SCHOOL YEAR.
THE BUDGET ASSUMES NO CHANGE IN PROGRAM PARTICIPATION IN TERMS OF THE NUMBER OF STUDENTS THAT ARE PURCHASING MEALS IN OUR CAFETERIAS OR THE NUMBER OF STUDENTS THAT ARE PARTICIPATING IN OUR FREE AND REDUCED LUNCH PROGRAM.
THE CHILD NUTRITION FUND, IF YOU GUYS REMEMBER FROM LAST YEAR, DOES CARRY AN EXCESS FUND BALANCE.
THERE ARE SOME FEDERAL RULES AROUND THE TOTAL FUND BALANCE THAT CAN BE CARRIED BY A CHILD NUTRITION FUND.
IF YOU HAVE EXCESS FUND BALANCE, WHICH WE BUILT UP AFTER COVID WHEN THE FEDERAL GOVERNMENT WAS ESSENTIALLY PAYING FOR FREE MEALS FOR ALL STUDENTS, OUR FUND BALANCE BUILT UP DURING THAT TIME.
NOW, IF YOU HAVE EXCESS FUND BALANCE, YOU ARE REQUIRED TO IMPLEMENT WHAT'S CALLED A CAPITAL SPEND PLAN OR A PLAN TO SPEND DOWN YOUR FUND BALANCE.
WE HAVE BEEN OVER THE COURSE OF THE LAST COUPLE OF YEARS REPLACING
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EQUIPMENT AND CAFETERIAS AND THINGS LIKE THAT THAT'S NEEDED THAT WE CAN USE THAT EXCESS FUND BALANCE FOR.THAT'S WHY YOU SEE $3.5 MILLION OF CAPITAL OUTLAY BUDGETED, AS WELL AS A BUDGET DEFICIT BECAUSE WE ARE WORKING ON SPENDING THAT FUND BALANCE DOWN TO GET IT BACK DOWN TO THE REQUIRED MAXIMUM FUND BALANCE UNDER THAT FEDERAL GRANT PROGRAM.
ANY QUESTIONS ON CHILD NUTRITION? YES.
>> IT SHOULDN'T CAFETERIA AND OTHER SALES INCREASE YEAR AFTER YEAR.
>> YES, THEY'VE DECREASED JUST A LITTLE BIT.
THIS IS JUST BASED ON STUDENTS THAT HAVE ACTUALLY PARTICIPATED IN BUYING LUNCHES AT SCHOOL.
LAST YEAR IN '23-'24, WE WERE COMING OFF OF THE TIME PERIOD WHERE STUDENTS WERE ALL EATING FOR FREE DURING COVID.
THEN THE '22-'23 SCHOOL YEAR WAS STILL A LITTLE BIT DIFFERENT BECAUSE WE WERE BUILDING BACKUP PARTICIPATION IN STUDENTS BUYING THEIR LUNCHES.
THE '24 BUDGET WAS AN ESTIMATE OF WHERE WE THOUGHT WE WERE GOING TO LEVEL OUT.
NOW THAT WE FEEL LIKE WE'VE LEVELED OUT PROGRAM PARTICIPATION, WE'RE ADJUSTING THE BUDGET TO MATCH WHAT IS ACTUALLY HAPPENING.
>> YOU JUST EXPLAINED THIS, IT JUST PROBABLY WENT OVER MY HEAD.
WE WE'RE OPERATING IN A DEFICIT FOR THIS PROPOSED FUND, BUT WE GET THE MONEY TO COVER THAT FROM WHAT WE'VE GOT?
>> GOOD QUESTION. FUND BALANCE, IT'S THE AMOUNT OF MONEY THAT'S SITTING THERE, ASSETS MINUS LIABILITIES ESSENTIALLY.
YOU CAN THINK OF IT LIKE A SAVINGS ACCOUNT ESSENTIALLY.
THE FEDERAL GRANT PROGRAM FOR CHILD NUTRITION PUTS A CAP, A LIMIT ON THE AMOUNT OF FUND BALANCE THAT YOU CAN CARRY.
IF YOU GO OVER THAT LIMIT, YOU'RE REQUIRED TO HAVE A SPENDING PLAN TO SPEND IT DOWN, WHICH MEANS YOU'RE ESSENTIALLY REQUIRED TO HAVE A DEFICIT SO THAT YOU'RE SPENDING THAT MONEY DOWN.
THAT'S WHAT WE'RE DOING IS WE'RE NOT DOING IT ALL AT ONCE BECAUSE THAT'S NOT REALLY FEASIBLE, BUT WE'RE WORKING TO SPEND THAT DOWN SO THAT WE CAN GET BACK TO UNDER THAT CAP.
>> IS THERE A CERTAIN TIME THAT YOU HAVE TO GET BACK TO USE THOSE FUNDS?
>> WELL, IT'S AS QUICKLY AS POSSIBLE.
BUT AS LONG AS WE HAVE A PLAN IN PLACE AND THAT PLAN GOES TO THE TEXAS DEPARTMENT OF AGRICULTURE, WHICH OVERSEES THE GRANT PROGRAM.
WE SUBMIT THAT PLAN TO THE TDA, AND THEN AS LONG AS WE HAVE A PLAN IN PLACE AND WE'RE WORKING THROUGH IT, THEN WE'RE OKAY.
>> LAST QUESTION, HOW MUCH DO WE HAVE TO SPEND? HOW MUCH?
>> HOW MUCH IS IN FUND? YOU KNOW WHAT, I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD, BUT I CAN DEFINITELY GET YOU WHAT OUR FUND BALANCE IS AND WHAT THE CAP IS.
I JUST I DID NOT BRING THAT NUMBER WITH ME.
>> OTHER QUESTIONS ON CHILD NUTRITION? LET'S GET INTO THE STUFF THAT I KNOW YOU GUYS ARE MOST FOCUSED ON.
AS A REMINDER, LAST WORKSHOP, WE WENT OVER SALARY BENCHMARKING, WHERE WE COMPARED DISTRICT SALARIES TO 19 OTHER LOCAL DISTRICTS THAT WE COMPETE WITH FOR STAFF.
THE PURPOSE THERE WAS TO DETERMINE WHETHER OUR SALARIES BY EMPLOYEE GROUP ARE COMPETITIVE WITHIN THE LOCAL MARKET.
TODAY, WE'RE DOING OUR FINANCIAL BENCHMARKING.
THIS IS DIFFERENT IN THAT IT COMPARES US TO NINE OTHER SIMILAR DISTRICTS ACROSS THE STATE, SO THEY'RE NOT ALL LOCAL.
THEN THIS IS BASED ON '22-'23 AUDITED FINANCIAL DATA.
THIS IS LAST YEAR'S AUDITED FINANCIAL INFORMATION ACTUAL SPENDING BY STUDENT.
THE PURPOSE REALLY IS TO JUST IDENTIFY POSSIBLE INEFFICIENCIES.
WE WANT TO MAKE SURE THAT WE ARE SPENDING IN LINE WITH OUR PRIORITIES AS A DISTRICT, THAT WE'RE NOT SIGNIFICANTLY OUT OF LINE IN A WAY THAT CAN'T BE EXPLAINED WITH OTHER DISTRICTS OF SIMILAR SIZE.
THE CRITERIA THAT WE USED FOR IDENTIFYING BENCHMARK DISTRICTS IS SIMILAR TO THE CRITERIA PRESCRIBED BY THE EFFICIENCY AUDITS THAT WERE PASSED IN HB 3 SEVERAL YEARS AGO.
IF A SCHOOL DISTRICT GOES OUT FOR A VOTER APPROVAL TAX RATE ELECTION, THEY ARE REQUIRED TO HAVE AN EFFICIENCY AUDIT DONE BY AN EXTERNAL AUDITOR AND THAT INFORMATION IS REQUIRED TO BE POSTED TO THE DISTRICT'S WEBSITE BEFORE THE VOTER TAKES PLACE.
IF YOU REMEMBER LAST YEAR, EVEN THOUGH WE WEREN'T HOLDING A TAX RATE ELECTION, WE DID AN EFFICIENCY AUDIT TO HELP US SEE IF WE COULD IDENTIFY ANY INEFFICIENCIES AS WE WERE LOOKING TO BALANCE OUR BUDGET.
YOU GUYS GOT COPIES OF THAT EFFICIENCY AUDIT,
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I THINK BACK IN OCTOBER OR NOVEMBER.WHEN WE DO FINANCIAL BENCHMARKING, PART OF THAT EFFICIENCY AUDIT IS ESSENTIALLY FINANCIAL BENCHMARKING, BUT WE DO OUR OWN SEPARATE FROM THE INDEPENDENT AUDITORS BUT WE USE SIMILAR CRITERIA.
WE'RE LOOKING FOR INDEPENDENT PUBLIC SCHOOL DISTRICTS, SO NON-CHARTERS WITH ENROLLMENT 50,000-100,000 STUDENTS SO THAT WE CAN GET DISTRICTS OF SIMILAR SIZE.
WE'RE LOOKING FOR TEA ACCOUNTABILITY RATINGS OF B OR HIGHER WITH AN OVERALL RATING SCORE OF 85 OR BETTER, AND THEN A SCHOOL FIRST RATING OF A.
NOW, WE DID NOT CHANGE THE BENCHMARK DISTRICTS THAT WE USED THIS YEAR FROM THE GROUP WE USED LAST YEAR BECAUSE THEY ALL STILL HAD ENROLLMENT BETWEEN 50,000-100,000 STUDENTS, AND TEA DID NOT RELEASE ACCOUNTABILITY SCORES FOR 2023.
WE WERE STILL USING THE GRADE LETTERS SCORES FROM 2022.
WE DID NOT CHANGE OUR PEER DISTRICT BENCHMARK GROUP FROM LAST YEAR TO THIS YEAR, WHICH ACTUALLY IF YOU GUYS WANT TO DIG INTO IT AND COMPARE LAST YEAR TO THIS YEAR, YOU HAVE THAT INFORMATION, AND IT MAKES IT EASIER TO SEE ANY CHANGES.
ALTHOUGH I WILL TELL YOU VERY LITTLE HAS CHANGED IN TERMS OF THE TAKEAWAYS FROM THIS BENCHMARKING FROM LAST YEAR TO THIS YEAR.
>> KIM, IF YOU GO BACK TO THE PREVIOUS SCREEN.
WE LOOKED AT ALL OF THE SCHOOLS THAT MET THAT CRITERIA IN TEXAS?
>> WE LOOKED AT ALL OF THE SCHOOL DISTRICTS THAT MET THIS CRITERIA AND THEN WE CHOSE THE NINE SO THAT WE WOULD HAVE A GROUP OF 10 THAT MOST CLOSELY MET THAT CRITERIA.
>> THIS WASN'T THE ONLY CRITERIA WE USED?
>> THIS IS THE ONLY CRITERIA THAT WE USED. YES.
>> WE USE THAT CRITERIA BUT NOT ALL OF THE SCHOOLS THAT WERE USING.
SOME OF THE SCHOOLS THAT MET THIS CRITERIA ARE NOT INCLUDED, IS WHAT I'M ASKING?
>> CORRECT. I BELIEVE THERE WERE THREE DISTRICTS AND WHAT WE DID WAS WE RANK ORDERED THEM.
FOR EXAMPLE, WITH TEA ACCOUNTABILITY RATINGS, WE WANTED B OR HIGHER, AND THEN THERE WERE A CLEAR CUT OF 85 OR BETTER OR A B IS STILL 80-84.
SOME OF THE DISTRICTS HAD LOWER THAN AN 85 AND SO EVEN THOUGH THEY TECHNICALLY MET THE CRITERIA OF SIZE AND HAVING A B, BECAUSE THEY WERE LOWER THAN THE OTHER DISTRICTS IN TERMS OF THE NUMBER SCORE, WE DID NOT INCLUDE THEM SO THAT WE GET A GROUP OF 10.
>> IS THERE A REASON WHY WE CUT IT OFF? IS THERE A REASON WHY WE DIDN'T INCLUDE THOSE OR IS THERE ONLY A CERTAIN AMOUNT OF SCHOOLS WE WANT TO USE FOR BENCHMARKING?
>> I LIKE USING A GROUP OF 10 JUST BECAUSE IT'S A GOOD ROUND NUMBER TO USE.
NINE OTHER DISTRICTS PLUS US GIVES US A GROUP OF 10.
I WILL TELL YOU THE ONLY DISTRICT THAT WAS NOT INCLUDED THAT MET THE CRITERIA WAS FORT WORTH ISD AND THAT'S BECAUSE THEY HAD A B SCORE BUT IT WAS BELOW AN 85 IN THE 2022.
THAT'S HOW WE DETERMINED THE CUTOFF.
>> THE DISTRICTS THAT WE BENCHMARKED AGAINST WERE ARLINGTON, AUSTIN, CONROE, EL PASO, FORT BEND, GARLAND, KATY, KLEIN, AND NORTHEAST.
YOU CAN SEE THEY'RE RELATIVELY SPREAD OUT ACROSS THE STATE OF TEXAS, MOST OF THEM ARE IN THE HOUSTON AREA, BUT WE ESSENTIALLY ARE GETTING THE LARGE DISTRICTS ACROSS THE STATE THAT WE ARE BENCHMARKING AGAINST.
YOU CAN SEE THE 2022 ACCOUNTABILITY RATINGS AND THE ENROLLMENT SIZE THERE JUST FOR SOME PERSPECTIVE.
YOU ALSO HAVE PULLED UP ON YOUR COMPUTERS, THE PDF OF THE ACTUAL DETAIL FINANCIAL BENCHMARKING.
AS I GO THROUGH THIS, IF YOU WANT TO PAUSE AND TAKE A LOOK THROUGH THAT AND ASK ANY QUESTIONS.
YOU'RE DEFINITELY WELCOME TO DO THAT.
>> I NOTICED ONE THING AND I'M TRYING TO BE PIGGY, BUT EL PASO DIDN'T MEET 50,000, BUT MAYBE THEY'RE THERE NOW.
>> EL PASO WAS AT 50,000 IN 2022, AND THEY DROPPED JUST A LITTLE BIT, BUT I OPTED TO LEAVE THEM IN SO THAT WE KEPT THE SAME DISTRICTS THAT WE BENCHMARKED AGAIN LAST YEAR JUST FOR SOME CONSISTENCY.
>> I'M GLAD YOU BROUGHT THAT UP, I MEAN TO POINT THAT OUT.
WHEN WE LOOK AT REVENUE AND EXPENDITURES PER STUDENT, AND ALL OF OUR BENCHMARKING IS DONE ON A PER STUDENT BASIS SO THAT WE CAN REALLY COMPARE APPLES TO APPLES.
WHEN YOU LOOK AT THE BIG PDF OF ALL THE BENCHMARKING, YOU'LL SEE EVERY NUMBER WHEN WE'RE LOOKING AT DETAILS OF REVENUE AND EXPENSES, YOU'LL SEE ALL OF THAT INFORMATION PER STUDENT, OR AS A PERCENTAGE OF THE TOTAL.
THAT WAY, IT HELPS US COMPARE APPLES TO APPLES, EVEN THOUGH THERE'S SOME DIFFERENCES IN ENROLLMENT SIZE BETWEEN THESE DISTRICTS.
THE THINGS THAT WE NOTICE WHEN WE LOOK AT REVENUE AND EXPENDITURES PER STUDENT.
[00:25:02]
THE LEFT SIDE IS FOR FRISCO ISD REVENUE AND EXPENDITURES, THE RIGHT SIDE IS THE PEER GROUP AVERAGE.THOSE OTHER NINE DISTRICTS, THE AVERAGE REVENUE AND EXPENDITURES FOR THOSE FOR BOTH THE GENERAL FUND AND SPECIAL REVENUE FUNDS.
OUR PEERS BY AND LARGE, HAVE LARGER, LOW SOCIOECONOMIC POPULATIONS THAN WE DO.
WHICH QUALIFIES THEM FOR MORE GRANT FUNDING, INCLUDING ESSER FUNDS.
WHILE WE SPENT THE MAJORITY OF OUR ESSER FUNDS AS OF AUGUST OF THIS PAST YEAR, THE MAJORITY OF OUR PEERS ARE ACTUALLY FINALIZING SPENDING OF THEIR MONEY THIS CURRENT FISCAL YEAR.
THEY HAD ENOUGH TO STRETCH THEM ONE MORE YEAR, WHEREAS WE DIDN'T BECAUSE, WELL, MOST OF OUR GRANT FUNDING IS BASED ON THE PERCENTAGE OF LOW SOCIOECONOMIC STUDENTS THAT WE HAVE IN OUR DISTRICT.
THAT'S WHY YOU SEE THE SPECIAL REVENUE FUNDS PORTION OF THOSE BARS SIGNIFICANTLY HIGHER THAN FRISCO ISDS.
OUR PEERS SPENT ON AVERAGE, LITTLE UNDER $1400 MORE PER STUDENT IN THE 2023 FISCAL YEAR THAN WE DID, AND 84% OF THAT ADDITIONAL SPENDING CAME FROM SPECIAL REVENUE OR GRANT FUNDS.
IF YOU LOOK AT JUST THE DARK BLUE BARS ALONE, YOU CAN SEE WE'RE PRETTY CLOSE TO THE AVERAGE SPENDING FOR OUR PEER GROUP THAT WE'RE BENCHMARKING AGAINST.
WELL, WE DON'T KNOW JUST FROM THE DATA THAT'S PROVIDED IS HOW MUCH OF THE ADDITIONAL FUNDING IN THOSE SPECIAL REVENUE FUNDS FOR OUR PEERS CAME FROM ESSER, WHICH WAS COVID STIMULUS VERSUS A MORE SUSTAINABLE GRANT SOURCE LIKE TITLE 1 FUNDING OR IDEA FUNDING, THE IS TYPICALLY AVAILABLE YEAR AFTER YEAR AND DOESN'T HAVE AN EXPIRATION DATE LIKE ESSER DID.
SORRY, LET ME MOVE MARK OUT OF THE WAY AGAIN.
IN TERMS OF FUNCTIONAL SPENDING, I BROKE THIS DOWN FOR YOU BETWEEN INSTRUCTION INSTRUCTIONAL SUPPORT, AND THEN OPERATIONS AND ADMINISTRATION.
YOU'RE LOOKING AT THINGS THAT ARE CLOSEST TO THE CLASSROOM VERSUS THINGS THAT ARE COSTS THAT IT JUST TAKES TO RUN THE ORGANIZATION AS A WHOLE.
WHAT WE NOTICE IS THAT FRISCO ISD SPENT AN AVERAGE OF $143 MORE PER STUDENT ON DIRECT INSTRUCTIONS.
CLASSROOM RELATED EXPENSES, THAT'S THE DARK BLUE PIECE OF THE PIE.
INSTRUCTION AND INSTRUCTIONAL SUPPORT FOR US IN 2023 WAS 84% OF OUR TOTAL SPENDING AND 16% WAS ON OPERATIONS AND ADMINISTRATION VERSUS OUR PEER GROUP AVERAGE OF 80% AND 20%.
IF YOU LOOK AT THE DETAIL ON THE PDF THAT'S IN FRONT OF YOU, YOU'LL SEE THAT WE RANKED HIGHEST IN THE PEER GROUP OF 10 FOR EXTRACURRICULAR SPENDING.
WE ALMOST ALWAYS RANK NUMBER 1 IN THAT CATEGORY BECAUSE OF OUR STUDENT OPPORTUNITY MODEL.
WHEN YOU HAVE 12 COMPREHENSIVE HIGH SCHOOLS, YOU HAVE 12 VARSITY FOOTBALL TEAMS, 12 VARSITY BASKETBALL TEAMS, 12 BANDS THAT CAN QUALIFY TO GO TO STATE, 12 ORCHESTRAS, AND SO AS COMPARED TO OUR PEERS WHO MAY HAVE THE SAME NUMBER OF STUDENTS, BUT FEWER HIGH SCHOOLS, FEWER VARSITY TEAMS AND THAT THING.
OUR STUDENT OPPORTUNITY MODEL, THE PARTICIPATION THAT OUR STUDENTS GET ESSENTIALLY MAKES IT MORE EXPENSIVE FOR OUR EXTRACURRICULAR SPENDING.
WE SPEND ABOUT THE SAME PER STUDENT OF OUR BUDGET ON GENERAL ADMINISTRATIVE COSTS AS OUR PEERS.
I KNOW THAT'S ALWAYS SOMETHING THAT IS OF INTEREST TO PEOPLE.
ABOUT 3% OF OUR BUDGET IS SPENT ON GENERAL ADMINISTRATIVE COSTS.
GENERAL ADMINISTRATIVE COSTS IS NOT JUST DISTRICT ADMINISTRATIVE POSITIONS, IT'S EVERYTHING IN CENTRAL OFFICE THAT IT TAKES TO ESSENTIALLY RUN THE BUSINESS OF THE ORGANIZATION.
THE HR DEPARTMENT, THE BUSINESS SERVICES DEPARTMENT, OUR COMMUNICATIONS DEPARTMENT.
ALL OF THE PEOPLE THAT WORK IN THOSE DEPARTMENTS THAT ESSENTIALLY IT TAKES TO RUN THE BUSINESS SIDE OF THE ORGANIZATION, THAT'S WHAT'S CONSIDERED TO BE GENERAL ADMINISTRATION.
ON AVERAGE, WE ACTUALLY SPEND A FEW DOLLARS LESS, I THINK, THAN THE AVERAGE OF OUR PEER GROUP, BUT 3% OF THE BUDGET IS TYPICAL FOR DISTRICTS OF OUR SIZE.
WE ALSO SPEND SIGNIFICANTLY LESS ON OPERATIONS THAN OUR PEERS, IF YOU LOOK AT THAT DETAIL PDF.
MOSTLY BECAUSE OUR BUILDINGS ARE ON AVERAGE NEWER, THEN A LOT OF THE DISTRICTS THAT WE'RE BENCHMARKING AGAINST AND MORE ENERGY EFFICIENT.
IT'S NOT NECESSARILY THAT WE DON'T HAVE TO SPEND MONEY MAINTAINING THOSE BUILDINGS, BUT WE HAVE BUILT THEM.
THEY ARE NEW ENOUGH THAT THEY'RE MORE ENERGY EFFICIENT THAN A LOT OF THE BUILDINGS THAT OUR PEERS HAVE.
AGAIN, ONE OF THE THINGS THAT WE DON'T KNOW IS HOW MUCH OUR PEERS USED ESSER MONEY TO SUPPLANT GENERAL FUND SPENDING IN 2023.
FRISCO ISD USED MONEY TO SUPPLANT GENERAL FUND SPENDING IN 2023.
IF YOU REMEMBER, WE USED ABOUT 17 OR
[00:30:04]
$18 MILLION OF ESSER MONEY TO SUPPLANT GENERAL FUND SPENDING.WHAT I MEAN BY THAT IS, OUR SPENDING IN THE GENERAL FUND WAS REDUCED BY 17 OR $18 MILLION, AND WE MOVED THAT TO A GRANT FUND TO HELP US BALANCE OUR BUDGET.
THAT'S WHAT GOT US LAST YEAR FROM A DEFICIT TO A LITTLE TINY SURPLUS BECAUSE WE WERE ABLE TO USE THAT MONEY TO SUPPLANT OUR SPENDING.
WHAT I DON'T KNOW IS HOW MUCH OUR PEER GROUPS THAT WE'RE BENCHMARKING AGAINST DID THE SAME THING, AND IF THAT SKEWS THE DATA A LITTLE BIT OR NOT.
>> CAN YOU TALK A LITTLE BIT MORE ABOUT HOW IT MIGHT SKEW THE DATA AND WHY THAT WOULD BE SIGNIFICANT?
>> SURE. I DON'T KNOW THAT IT WOULD BE HORRIBLY SIGNIFICANT BECAUSE, IN THE DETAIL, WE'RE BENCHMARKING BOTH GENERAL FUND ONLY AND GENERAL AND SPECIAL REVENUE FUNDS AND SO WE'RE NOT SEEING ANYTHING THAT'S HORRIBLY OUT OF LINE WHEN WE LOOK AT GENERAL AND SPECIAL REVENUE FUNDS TOGETHER, AND ESSER IS A SPECIAL REVENUE FUND.
BUT THIS GRAPH IS GENERAL FUND ONLY.
FOR EXAMPLE, IF WE HAD PEERS THAT SUPPLANTED SAY A SIGNIFICANT AMOUNT OF INSTRUCTION OR INSTRUCTIONAL SUPPORT COSTS WITH ESSER MONEY, THEN THAT MIGHT BE CONTRIBUTING TO THE DIFFERENCE BETWEEN THE 84% IN FRISCO AND THE 80% FOR THEM.
WE STILL DON'T SEE ANYTHING THAT'S SIGNIFICANTLY OUT OF LINE, BUT IT COULD SKEW THOSE PERCENTAGES A LITTLE BIT FOR COMPARISON.
IT'S JUST IMPORTANT TO KEEP THAT KIND OF THING IN MIND.
THE DATA IS NOT AS CLEAN AS IT WOULD BE HAD WE NOT HAD ESSER AVAILABLE TO US.
>> I KNOW IT'S GETTING LESS AND LESS MEANINGFUL, AND IF YOU SAY NO, I'M NOT GOING TO BE DISAPPOINTED.
ARE YOU LOOKING STILL BACK AT BENCHMARKING PRE-COVID AND SEEING HOW WE COMPARE TODAY TO THEN?
>> EVERY YEAR WHEN WE DO THE BENCHMARKING, I GO BACK AND LOOK AT PREVIOUS YEARS AND JUST LOOK FOR ANYTHING THAT SEEMS LIKE IT HAS CHANGED FROM PRIOR YEARS.
I'M NOT NECESSARILY TRACKING IT IN DETAIL, BUT I AM REVIEWING THE OLD ONES AND LOOKING AT THE NEW ONES AS WELL.
I HAVE NOT SEEN ANYTHING THAT LOOKS SIGNIFICANTLY DIFFERENT THAN IT DID PRE-COVID.
THE PERCENTAGES HAVE SHIFTED SOME, THE PER-STUDENT SPENDING DOLLARS HAVE SHIFTED A LITTLE BIT BETWEEN FUNCTIONS.
BUT BACK PRE-COVID, WE WERE ALSO SPENDING MORE THAN THE AVERAGE OF OUR PEERS ON DIRECT INSTRUCTION AND INSTRUCTIONAL SUPPORT SO THE DOLLAR AMOUNT DIFFERENCE MAY HAVE CHANGED A LITTLE BIT, BUT I HAVEN'T NOTICED ANY MAJOR ANOMALIES SINCE COVID.
>> NOT A QUESTION, BUT JUST A STATEMENT TO EMPHASIZE YOUR POINT.
IT'S INTERESTING THAT YOU SAY THAT SOME OF THESE PIER DISTRICTS ARE STILL SPENDING DOWN THEIR ESSER FUNDS WHEN WE'RE AT A POINT NOW WHERE WE'RE EXHAUSTING OURS.
BUT WE KNEW COMING IN, THAT A BIG DETERMINANT OF RECEIVING THOSE ESSER FUNDS WERE THE NUMBER OF LOW SOCIOECONOMIC STATUS CHILDREN THAT WE HAD.
WE'VE HAD CONVERSATIONS BEFORE, AND I GUESS IT BEARS REPEATING, WE JUST DON'T KNOW TO WHAT EXTENT SOME OF THESE PEER DISTRICTS OR ANY DISTRICT IN THE STATE IS STILL PAYING FOR COSTS WITH TEMPORARY MONEY, PAYING FOR RAISES WITH TEMPORARY MONEY AND THAT COULD VERY SIGNIFICANTLY STILL BE HAPPENING IN SOME DISTRICTS, EVEN THOUGH WE ARE NOW EXHAUSTING OUR ABILITY TO DO IT?
>> YES. I WOULD SAY THAT IS FAIR.
THE DEADLINE FOR SPENDING ESSER MONEY IS AUGUST OF 2023 SO DISTRICTS THAT HAD SIGNIFICANT BALANCES OF ESSER WOULD HAVE HAD THIS YEAR TO SPEND THAT DOWN WHERE WE STARTED THIS FISCAL YEAR, I THINK WITH MAYBE THREE OR $4 MILLION LEFT THAT WE'RE SPENDING DOWN, BUT NOT AS SIGNIFICANT AS SOME OF OUR PEERS.
THERE ARE SOME DISTRICTS IN THIS PEER GROUP THAT RECEIVED $250 MILLION OF ESSER MONEY BACK IN THE ORIGINAL GRANT THAT THEY HAD SEVERAL YEARS TO SPEND.
YES, WE DON'T KNOW TO THE EXTENT THAT DISTRICTS ARE STILL USING THAT TO HELP BALANCE THEIR BUDGETS.
I DO HAVE SOME INTERESTING INFO FROM TASBO THAT I'LL SHOW YOU ON A SLIDE HERE IN A MINUTE THOUGH ABOUT DEFICIT SPENDING.
>> KIEM, LET ME ASK YOU A QUESTION.
LAST YEAR, WE BUDGETED FOR WHERE WE THOUGHT WHEN WE WERE DOING THIS PROCESS, WE WERE GOING TO HAVE A DEFICIT, CORRECT?
>> BUT WE ENDED UP MAKING UP THAT DEFICIT WITH ESSER FUNDS.
>> THE '22, '23 SCHOOL YEAR, YES, WE BUDGETED A DEFICIT IN THE '22, '23 SCHOOL YEAR.
THE INTENTION WAS ALWAYS TO USE ESSER MONEY TO BALANCE THAT DEFICIT FOR THAT YEAR AND WE DID.
THE WAY THAT WE DID THAT IS WHAT WE CALL SUPPLANTING COSTS,
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MEANING WE BUDGETED FOR IT IN THE GENERAL FUND, BUT WHEN WE ACTUALLY WENT TO SPEND THAT MONEY, WE SPENT THE GRANT MONEY INSTEAD OF THE GENERAL FUND MONEY.THAT HELPED US GO FROM DEFICIT BACK TO BALANCED AND ACTUALLY A LITTLE BIT SURPLUS LAST YEAR.
>> THE REASON I'M BRINGING THAT UP IS BECAUSE LAST YEAR, I WAS UNDER THE IMPRESSION ALL YEAR THAT WE WOULD BE RUNNING A DEFICIT BUDGET, BUT THEN WE TOOK CARE OF IT.
IS IT POSSIBLE THAT WE'RE FACING SOMETHING LIKE THAT THIS YEAR WHERE WE'RE GOING TO BE ABLE TO GET FUNDS FROM SOMEWHERE ELSE AND MAKE UP THE DIFFERENCE AND WE'LL BE OKAY?
>> NO, WE DON'T HAVE ESSER MONEY LEFT THAT WE CAN USE TO BALANCE THE BUDGET LIKE WE DID LAST YEAR.
THERE'S NOT MONEY THAT COULD COME FROM SOMEWHERE ELSE TO BALANCE THAT.
HOWEVER, LIKE WE'VE BEEN TALKING ABOUT OVER THE COURSE OF THESE WORKSHOPS, WE TYPICALLY WILL SAVE A PORTION OF OUR BUDGET EVERY YEAR THROUGH VACANT POSITIONS AND THINGS LIKE THAT.
AT ANY GIVEN TIME, WE HAVE A NUMBER OF POSITIONS THAT ARE VACANT ACROSS THE DISTRICT, MAYBE ABOUT 1% OF OUR POSITIONS ARE OPEN AT ANY GIVEN TIME, MEANING WE'RE NOT PAYING THE SALARIES FOR THOSE POSITIONS UNTIL THEY'RE FILLED.
TYPICALLY, WHAT I'VE BEEN SHOWING YOU GUYS IS WE'LL SAVE BETWEEN $10 AND 15 MILLION OF OUR BUDGET.
IF WE ADOPTED A $24 MILLION DEFICIT AND HISTORY REPEATS ITSELF AND WE SAVE 10 OF THAT, THEN THAT MEANS WE'RE ONLY GOING TO REALIZE A $14 MILLION DEFICIT, NOT A $24 MILLION DEFICIT.
THE OTHER THING THAT HAPPENS OVER THE SUMMER IS WE GATHER ALL OF OUR FINAL DATA FOR STUDENT ATTENDANCE THROUGHOUT THE YEAR AND THEN THE DIFFERENT SUB-POPULATIONS OF STUDENTS, THE DIFFERENT INSTRUCTIONAL SETTINGS THAT THOSE STUDENTS WERE SERVED IN THROUGHOUT THE YEAR, AND HOW OFTEN THEY CAME TO SCHOOL, THAT KIND OF THING.
WE SEND ALL THAT DATA TO TEA AND WE HAVE WHAT WE CALL A YEAR-END SETTLE-UP OF OUR FORMULA FUNDING.
WE BASE OUR REVENUE ESTIMATE ON WHAT WE KNOW TO BE TRUE TODAY, WHAT WE KNOW OUR CURRENT ENROLLMENT IS AND OUR CURRENT ATTENDANCE RATES ARE, AND WE ALWAYS HAVE SOME AMOUNT OF SETTLE-UP OVER THE SUMMER.
SOME YEARS THAT'S A LITTLE GREATER, SOME YEARS, THAT'S A LITTLE LESS.
IT'S NOT GOING TO BE $10 MILLION WORTH, BUT IT IS A LITTLE BIT OF MONEY.
OVER THE SUMMER, WE FINALIZE WHAT OUR FORMULA FUNDING WAS AND WE LOOK AT HOW MUCH MONEY WE WERE ABLE TO SAVE ON THE ACTUAL BUDGET, AND THEN THAT'S WHAT GETS US TO OUR FINAL BOTTOM LINE.
>> WHEN WE LOOK AT WHAT'S HAPPENED OVER THE YEARS, IT'S ALWAYS WORKED OUT.
TO BE HONEST, WE'VE NEVER RUN A DEFICIT EVEN UNTIL THIS POINT, CORRECT?
>> RIGHT. WE'VE ADOPTED DEFICITS FOR TWO YEARS NOW.
LAST THE 2023 FISCAL YEAR, WHICH IS THE YEAR YOU'RE LOOKING OUT ON BENCHMARKING WAS THE FIRST ONE, THAT YEAR WE MADE UP FOR THE DEFICIT WITH ESSER MONEY.
THEN THE SECOND YEAR IS THE YEAR THAT WE'RE CURRENTLY IN '23, '24, SO WE HAVEN'T FINISHED OUT THIS YEAR.
IN THE WORKSHOPS THAT I'VE BEEN PRESENTING TO YOU GUYS WHERE I'VE BEEN SHOWING YOU I DON'T HAVE IT IN THIS ONE BECAUSE WE JUST DID IT TWO WEEKS AGO, BUT WHERE I'VE BEEN SHOWING YOU WHERE I THINK WE'LL END UP AT THE END OF THIS YEAR AND TALKING ABOUT HOW I THINK WE'LL ONLY USE ABOUT $7 MILLION OR SO OF OUR RAINY DAY FUNDS, THAT'S WHERE WE'RE PROJECTING THAT WE'LL END UP.
>> NOW, YOU GUYS YOU DO A GREAT JOB ON BUDGETING.
ONLY THING, ME BEING IN MY SECOND YEAR HERE, WHEN I HEAR DEFICIT BUDGET, I'M THINKING LIKE, HEY, WE HAVE TO DO SOMETHING, WE HAVE TO FIGURE THIS OUT.
HAD I KNOWN THAT WE WOULD BE ABLE TO MEET THAT BUDGET DEFICIT, I MIGHT HAVE THOUGHT DIFFERENTLY ABOUT IT.
WE'RE LOOKING AT THIS YEAR AND WE'RE SAYING WE'RE GOING TO RUN A DEFICIT BUDGET AND I'M GOING TO THINK ONE WAY ABOUT DECISIONS WE HAVE TO MAKE BUT IF WE'RE NOT GOING TO BE RUNNING A BUDGET, IF IT'S GOING TO WORK OUT LIKE IT HAS IN THE LAST FEW YEARS, I WOULD HAVE DIFFERENT THOUGHTS ABOUT THE DECISIONS WE HAVE TO MAKE.
IS THERE ANY WAY OF PROBABLY HAVING A MORE ACCURATE BUDGET PROJECTIONS?
>> IF YOU LOOK BACK AT THE WORKSHOP SLIDES FROM THE LAST WORKSHOP, WHICH I DON'T HAVE PULLED UP HERE, SO I CAN'T PULL IT UP AND SHOW YOU, BUT IF YOU LOOK BACK AT THE WORKSHOP SLIDES FROM THE LAST ONE, I SHOWED YOU GUYS WHAT OUR PROJECTED YEAR-END SPENDING IS GOING TO BE, AND WHAT OUR PROJECTED ACTUAL DEFICIT FOR THIS YEAR IS GOING TO BE.
WE BUDGETED A $24 MILLION DEFICIT AND BY THE END OF THE YEAR, I PROJECT THAT WE WILL BE CLOSER TO A $7 MILLION DEFICIT THAN A $24 MILLION DEFICIT.
THAT COULD CHANGE. THAT IS A PROJECTION, AND THAT IS ASSUMING THAT HISTORY REPEATS ITSELF IN TERMS OF SPENDING AND EXTRA REVENUE THAT COMES IN OVER THE SUMMER AND THAT KIND OF THING.
[00:40:05]
THAT'S WHAT I'VE BEEN SHOWING YOU, AND THAT IS WHERE I EXPECT THAT WE WILL END UP IS $7 MILLION-ISH DEFICIT, NOT 24 MILLION.THEN AS WE'VE BEEN TALKING ABOUT, IF I CAN GO BACK TO OUR WORKING BUDGET, HANG ON.
HERE, LAST TIME WE TALKED ABOUT THE '24, '25 BUDGET FOR NEXT YEAR, AS OF THAT WORKSHOP, AND THIS HAS CHANGED, AND I'LL GO THROUGH HOW IT'S CHANGED.
BUT AS OF THAT LAST WORKSHOP, WE WERE LOOKING AT A $23 MILLION BUDGET DEFICIT.
BUT WE TYPICALLY SAVE BETWEEN 10 AND 15, WHICH MEANS AN ACTUAL DEFICIT WOULD BE CLOSER TO 13 MILLION INSTEAD OF THE 23 BUDGETED.
THIS IS BUDGETED AND THIS IS ANTICIPATED REALIZED.
THERE'S NOT THIS BIG POT OF MONEY FROM ESSER OR ANYWHERE ELSE THAT'S GOING TO COME IN AND COMPLETELY WIPE OUT THE DEFICIT LIKE WE WERE ABLE TO DO IN '22, '23.
BUT WHAT I'M TRYING TO SHOW YOU IS THERE'S A DIFFERENCE BETWEEN A BUDGET, WHICH IS YOUR WORST-CASE SCENARIO, I GUESS.
IF WE WERE TO FILL EVERY POSITION 100% OF THE TIME THROUGHOUT THE YEAR, WHICH IS NOT TYPICAL FOR ANY ORGANIZATION.
IF WE WERE TO SPEND EVERY CAMPUS AND DEPARTMENT BUDGET DOWN TO THE PENNY, IF WE WERE TO SPEND EVERY CONTINGENCY THAT WE HAVE BUILT-IN, THEN OUR DEFICIT WOULD BE $23 MILLION.
IT'S NOT LIKELY THAT WE SPEND EVERY BUDGET DOWN TO THE PENNY.
IT'S NOT LIKELY THAT WE HAVE EVERY SINGLE POSITION OF 9,000 POSITIONS THAT IS 100% FILLED EVERY SINGLE DAY OF OUR YEAR.
WHAT'S MORE LIKELY IS THAT 10 - $15 MILLION OF THIS DEFICIT WILL COME OFF AND WILL BE SAVED, AND WHAT WE'LL ACTUALLY END UP WITH IS DIGGING INTO OUR RAINY DAY FUND BY MORE LIKE 13.
AGAIN, THESE NUMBERS WERE FROM LAST WORKSHOP.
THEY'RE GOING TO CHANGE HERE IN A MINUTE WHEN I WALK YOU THROUGH OTHER CHANGES, OTHER IDENTIFIED COST SAVINGS. [OVERLAPPING]
>> LET ME ASK YOU THE LAST QUESTION.
DOES IT VIOLATE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES TO ADD THAT TYPICAL BUDGET SAVINGS TO THE SURPLUS TO GET A MORE ACCURATE NUMBER?
>> NO, IT DOES NOT VIOLATE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, THERE ARE TWO SCHOOLS OF THOUGHT WITH BUDGETING.
ONE SCHOOL OF THOUGHT IS THIS IS THE BOTTOM LINE THAT YOU HAVE, YOU BUDGET BASED ON YOUR WORST CASE SCENARIO.
THIS IS WHAT WE CAN DO, LIKE I SAID, IF WE SPEND EVERYTHING DOWN TO THE PENNY, IF WE ARE 100% FILLED IN EVERY VACANCY ALL YEAR LONG.
NOT NECESSARILY WHAT YOU ANTICIPATE TO HAPPEN.
JUST LIKE WITH YOUR PERSONAL FINANCES, YOU MAY KNOW THIS IS HOW MUCH I CAN AFFORD TO SPEND EVERY MONTH.
I DON'T EXPECT TO SPEND EVERY SINGLE DOLLAR THAT I CAN AFFORD TO SPEND EVERY SINGLE MONTH.
I MAY THINK TO MYSELF, I DON'T NEED TO BUY THAT TODAY, SO I'M GOING TO SAVE THAT MONEY, AND OUR BUDGET OWNERS DO THE SAME THING.
AS THEY'RE GOING THROUGH THE YEAR AND SPENDING MONEY ON DIFFERENT THINGS, THEY MAY THINK, OH, I MIGHT BE ABLE TO DO THAT DIFFERENTLY.
I'M GOING TO SAVE THAT MONEY AND NOT SPEND IT ON WHATEVER AND SO IT'S THE SAME PRINCIPLE.
THAT IS HOW WE HAVE HISTORICALLY BUDGETED, IS THIS IS OUR WORST CASE SCENARIO, ESSENTIALLY.
THIS GIVES US THE MOST FLEXIBILITY AND IT GIVES US AS DEEP AS WE EXPECT TO GO OR AS DEEP AS WE COULD POSSIBLY GO INTO FUND BALANCE IF WE HAD TO.
IT'S NOT WHAT WE ANTICIPATE HAPPENING, BUT IT COULD HAPPEN IF ALL OF THE STARS ALIGN.
>> YEAH. THE OTHER SCHOOL OF THOUGHT WITH BUDGETING AND SOME DISTRICTS ADOPT THE SCHOOL OF THOUGHT IS, LET'S MAKE THE OPTICS OF THE BUDGET LOOK BETTER.
LET'S MAKE IT LOOK LESS DEFICIT AND BUDGET BASED ON WHAT WE THINK WILL ACTUALLY HAPPEN.
THEN IF WE DO HAVE MORE POSITIONS FILLED THROUGHOUT THE YEAR THAN TYPICAL OR IF WE DO SPEND SOME BUDGETS DOWN TO THE PENNY, THEN WE HAVE TO COME BACK AND AMEND THE BUDGET TO COVER THOSE OVERAGES.
IT'S JUST TWO DIFFERENT WAYS OF BUDGETING.
THIS WAY IS I BELIEVE MORE CONSERVATIVE AND ALSO GIVES OUR BUDGET OWNERS THE MOST FLEXIBILITY TO DO WHAT THEY NEED TO DO THROUGHOUT THE YEAR.
>> THE LAST PIECE THAT WE BENCHMARK IS STAFFING.
[00:45:01]
OUR SALARY BENCHMARKING THAT WE WENT OVER IN THE LAST WORKSHOP.THIS IS THE NUMBER OF STAFF IN DIFFERENT CATEGORIES FOR THE NINE OTHER LARGE DISTRICTS THAT WE COMPARE OURSELVES TO.
DON'T GET THIS CONFUSED WITH THE SALARY BENCHMARKING THAT WE WENT OVER LAST TIME.
THIS ALSO IS 22/23 STAFFING LEVELS, NOT THE CURRENT SCHOOL YEAR THAT WE'RE IN, BUT LAST SCHOOL YEAR.
WHEN YOU LOOK AT THE BREAKDOWN, YOU CAN SEE THAT FRISCOL SD, ON AVERAGE, AND THESE ARE BASED ON PERCENTAGES.
SO 57% OF OUR TOTAL EMPLOYEES WERE TEACHERS COMPARED TO AN AVERAGE OF 49% OF THE TOTAL FOR OUR PEERS.
I KNOW CENTRAL ADMINISTRATIVE STAFF IS ALWAYS A TOPIC OF DISCUSSION, WE HAVE AN AVERAGE NUMBER OF CENTRAL ADMINISTRATIVE STAFF COMPARED TO OUR PEERS, COMPARED TO OTHER DISTRICTS, OUR SIZE.
YOU CAN SEE HERE CAMPUS ADMINISTRATIVE STAFF, A LITTLE HIGHER PERCENTAGE THAN OUR PEERS.
AGAIN, I BELIEVE THAT'S A RESULT OF OUR STUDENT OPPORTUNITY MODEL, AND THE FACT THAT WE HAVE MORE SCHOOLS FOR OUR STUDENT POPULATION THAN OTHER DISTRICTS, OUR SIZE DO.
PROFESSIONAL SUPPORT STAFF, PRETTY SIMILAR.
WE DO HAVE FEWER PARAPROFESSIONAL AND AUXILIARY STAFF AS A PERCENTAGE OF THE TOTAL THAN OUR PEERS.
ESSENTIALLY, WE'VE PUT THOSE STAFFING INTO TEACHERS VERSUS PARAPROFESSIONAL AND AUXILIARY.
ALSO YOU CAN SEE THE STUDENT TO STAFF RATIOS HERE, SO FRISCOL SD IN 22/23 HAD 14.8 STUDENTS TO EVERY TEACHER.
OUR PEER DISTRICT AVERAGE WAS 15.1, AND THEN 8.5 STUDENTS TO TOTAL STAFF IN THE DISTRICT COMPARED TO OUR PEER DISTRICT AVERAGE OF 7.4.
ALL IN ALL THE TAKEAWAY FROM THE BENCHMARKING IS THAT WE REALLY HAVEN'T IDENTIFIED ANY MAJOR ANOMALIES OR INEFFICIENCIES.
WE HAVE IDENTIFIED SOME AREAS THAT WE'RE NOT SURPRISED ABOUT, LIKE EXTRACURRICULAR SPENDING AND THINGS LIKE THAT THAT ARE RELATED TO OUR MODEL.
BUT OTHER THAN THAT, WE CONTINUE TO BE PRETTY WELL IN LINE WITH OTHER DISTRICTS OUR SIZE ACROSS THE STATE.
ANY FINAL QUESTIONS ON BENCHMARKING BEFORE I MOVE ON? TASBO WHICH IS THE TEXAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS, BY THE WAY, TASBO RECENTLY CONDUCTED AN INFORMAL SCHOOL FINANCE SURVEY.
I THOUGHT YOU GUYS MIGHT BE INTERESTED IN SOME OF THE RESULTS.
SO I JUST HAVE ONE SLIDE TO GO OVER WHAT THEY FOUND.
TASBO THEY SURVEYED ALL DISTRICTS, BUT 313 DISTRICTS RESPONDED TO THIS.
AGAIN, IT WAS AN INFORMAL SURVEY.
IT ASKED THINGS LIKE WHAT ARE THE TOP CHALLENGES THAT YOU'RE FACING? ARE YOU ANTICIPATING RUNNING A DEFICIT AND BUDGETING A DEFICIT NEXT YEAR? SO THE TOP CHALLENGES CITED BY THE 313 DISTRICTS THAT FILLED THE SURVEY OUT, WHERE DEFICIT BUDGET OR LACK OF RESOURCES WAS THE NUMBER 1 CHALLENGE.
ABOUT 80% OF DISTRICTS THAT RESPONDED TO THIS REPORTED THAT AS ONE OF THEIR TOP CHALLENGES.
LOWER DECLINING ENROLLMENT, LACK OF QUALIFIED STAFF TO FILL OPEN POSITIONS, AGING FACILITIES, AND LOW STUDENT ATTENDANCE RATES.
THOSE WERE THE TOP FIVE CHALLENGES REPORTED BY THE DISTRICTS THAT RESPONDED TO THIS SURVEY.
WHEN ASKED ABOUT DEFICITS, LESS THAN A THIRD OF DISTRICTS OF THESE 313 DISTRICTS, REPORTED A DEFICIT IN FISCAL 23.
LAST YEAR, MORE THAN HALF ARE EXPECTING TO END FISCAL 24 IN A DEFICIT.
REMEMBER, WE'RE IN THAT SAME BOAT.
WE DID NOT REPORT A DEFICIT IN FISCAL 23 BECAUSE WE WERE ABLE TO USE OUR SR FUNDING TO COVER THAT.
BUT WE ARE IN THE MORE THAN HALF THAT ARE EXPECTING TO END FISCAL 24 IN A DEFICIT.
WHEN THEY ASKED ABOUT BUDGET PLANS, 57% OF THE DISTRICTS THAT RESPONDED ARE ANTICIPATING BOTH BUDGET CUTS AND USE OF FUND BALANCE.
WHEN I SAY USE OF FUND BALANCE, I'M USING THE TERM RAINY DAY FUNDS AND FUND BALANCE INTERCHANGEABLY HERE.
SIXTEEN PERCENT ARE ANTICIPATING ONLY BUDGET CUTS AND NOT HAVING TO DIP INTO FUND BALANCE, 17% ARE ANTICIPATING TO DIP INTO FUND BALANCE BUT NOT HAVE TO MAKE ANY BUDGET CUTS, AND THEN 10% ARE LOOKING AT A BALANCED BUDGET.
I DON'T KNOW WHICH DISTRICTS THOSE 10% ARE.
[NOISE] I WOULD ANTICIPATE THAT THEY ARE PROBABLY FAST GROWTH DISTRICTS WHO ARE STILL ADDING SIGNIFICANT NUMBERS OF STUDENTS TO THEIR ENROLLMENT EVERY YEAR AND GENERATING MORE REVENUE.
WHEN ASKED ABOUT RAISE PLANS, LET ME SCOOT HIM OVER, 51% SAID THAT THEY PLAN TO FUND RAISES EITHER THROUGH BUDGET CUTS OR BY USING FUND BALANCE.
THIRTY THREE PERCENT SAID THAT THEY DIDN'T THINK THAT THEY COULD GIVE A RAISE NEXT YEAR,
[00:50:04]
AND THEN 16% SAID THAT THEY HAVE RAISES PLANNED WITH CURRENT AVAILABLE RESOURCES.IT DID NOT GET INTO THE AMOUNT OF THE RAISE THAT THESE DISTRICTS WERE PLANNING.
IT WAS JUST ARE YOU PLANNING TO INCREASE COMPENSATION OR NOT.
I DON'T HAVE ANY INFORMATION ABOUT THE AMOUNT OF RAISES THAT OTHER DISTRICTS ARE PLANNING.
I'LL PAUSE FOR QUESTIONS OR THOUGHTS BEFORE I DIVE INTO THE ACTUAL BUDGET.
[NOISE] I'VE GOT THESE LITTLE REMINDER FLAGS FOR THINGS THAT YOU HAVE SEEN BEFORE.
I'M JUST PUTTING THEM BACK UP FOR YOU TO REFRESH YOUR MEMORY.
THIS IS OUR PRELIMINARY REVENUE FORECAST FOR FISCAL 2025.
AGAIN, OUR FORMULA REVENUE HAS BEEN REDUCED BECAUSE WE HAD LOWER THAN PROJECTED ENROLLMENT IN 2024.
WE ARE PROJECTING NO ENROLLMENT GROWTH FOR 2025.
ALSO, NO ENROLLMENT LOSS, WE'RE JUST PROJECTING THAT OUR ENROLLMENT STAYS THE SAME FOR 2025.
WE ARE PROJECTING A SLIGHT INCREASE IN NON-FORMULA TAX REVENUE AND OTHER LOCAL REVENUE TO REFLECT WHAT WE PROJECT OUR YEAR END 2024 COLLECTIONS WILL BE.THEN WE'VE ALREADY TALKED ABOUT THE SHARS PROGRAM, THE FEDERAL AUDIT OF THE STATE SHARS PROGRAM, AND THE CHANGES TO SERVICES THAT TEXAS SCHOOL DISTRICTS CAN BUILD MEDICAID FOR, AND SO THAT IS REDUCING OUR FEDERAL REVENUE.
ALSO, OUR FLOW THROUGH REVENUES, THIS INCLUDES TRS ON BEHALF, OUR REVENUE FROM THE TRS.
THOSE WILL BE UPDATED WHEN WE GET PRELIMINARY CERTIFIED VALUES ON APRIL 30TH.
THESE ARE JUST PLACEHOLDERS RIGHT NOW.
BUT AGAIN, THEY DON'T IMPACT THE MONEY THAT WE HAVE AVAILABLE TO SPEND.
RECAPTURE ALSO WILL BE UPDATED WHEN WE GET PRELIMINARY CERTIFIED VALUES BECAUSE THAT IS ONE THING THAT TAXABLE VALUES IMPACTS, AND SO OUR FORMULA REVENUE MAY CHANGE JUST SLIGHTLY BETWEEN NOW AND THE TIME THAT YOU SEE THE NEAR FINAL BUDGET ONCE WE GET THOSE CERTIFIED VALUES.
AS A REMINDER, WE STARTED WITH OUR '24-25 BASE LINE BUDGET.
THAT WAS THE '23-24 ADOPTED BUDGET FROM LAST SUMMER, LESS THE FLOW THROUGH ITEMS SO THAT WE'RE NOT COUNTING THINGS THAT COME IN AND GO RIGHT BACK OUT, AND THEN PLUS ANY BOARD APPROVED AMENDMENTS THAT ARE ANTICIPATED TO BE RECURRING IN THE FUTURE AND THAT YOU GUYS ADOPTED AN AMENDMENT OF A LITTLE OVER THREE MILLION FOR PROPERTY CASUALTY INSURANCE PREMIUMS BACK IN THE FALL.
THAT GIVES US A BASELINE TO START WITH OF $650.2 MILLION.
WE TALKED ABOUT STAFFING EFFICIENCIES IN A PREVIOUS WORKSHOP.
WE TALKED ABOUT THIS 8.6 MILLION WHERE WE WERE ABLE TO REBALANCE CLASS LOADS ACROSS THE DISTRICT BASED ON THE LOWER THAN ANTICIPATED ENROLLMENT.
NOT CHANGING CLASS SIZES, BUT JUST REBALANCING THE NUMBER OF KIDS THAT DIDN'T COME INTO THE DISTRICT THAT WE STAFFED FOR LAST YEAR.
ADDITIONALLY, SOME CENTRAL OFFICE RESTRUCTURING THAT'S HAPPENED OVER THE COURSE OF THE SPRING.
WE ALSO HAVE NOW PLUGGED IN SOME PAYROLL EFFICIENCIES, SO REALIZED SAVINGS FROM TURNOVER IS ABOUT 3.8 MILLION.
ALSO, WE WENT BACK AND LOOKED AT ALL THE BUDGET FOR ALL OF OUR FRINGE COSTS, AND WE FELT COMFORTABLE PULLING FOUR MILLION DOLLARS OUT OF THE BUDGET FOR THAT.
WHEN I TALK ABOUT, WE TYPICALLY SAVE 10-15 MILLION DOLLARS, I'M ESSENTIALLY PULLING FOUR MILLION OUT OF THAT 10-15 MILLION JUST TO REDUCE THAT NUMBER A LITTLE BIT.
WE FELT PRETTY CONFIDENT AFTER LOOKING AT THE LAST COUPLE OF YEARS WITH ELECTIONS FOR INSURANCE WITH WHAT WE'RE PAYING FOR TRS COSTS AND OTHER PAYROLL FRINGE, THAT THIS IS A PRETTY ACCURATE AMOUNT TO BE ABLE TO PULL OUT OF OUR PAYROLL BUDGET.
JUST SQUEEZE DOWN THAT CUSHION A LITTLE BIT.
ADDITIONALLY, CAMPUSES RECEIVE THEIR BUDGETS ON A PER PUPIL ALLOTMENT AND BECAUSE WE HAD LOWER THAN ANTICIPATED ENROLLMENT, WE HAVE RECALCULATED THE CAMPUS BUDGETS BASED ON THEIR ACTUAL CURRENT ENROLLMENT OR THEIR PROJECTED ENROLLMENT FOR NEXT YEAR.
IF WE HAVE A SPECIFIC CAMPUS THAT IS PROJECTED TO ADD STUDENTS FOR NEXT YEAR, THEN THEY'RE BUDGETED BASED ON WHAT WE ANTICIPATE THEIR ENROLLMENT WILL BE, SO THEY GET THE GREATER OF THE TWO, BUT THAT DID DECREASE CAMPUS BUDGETS BY ABOUT A HALF MILLION DOLLARS.
IN TOTAL, WE'VE IDENTIFIED $16.9 MILLION OF COST SAVINGS, AND YOU CAN SEE OUR WORKING BUDGET OVER HERE ON THE SIDE AS I GO THROUGH THESE.
NOW WE TALK ABOUT BUDGET INCREASES.
YOU GUYS, WE ALREADY TALKED TO YOU ABOUT
[00:55:01]
THE SPECIAL POPULATION STAFF FOR PRE-K BILINGUAL AND SPECIAL EDUCATION.INFLATIONARY COST INCREASES IN DEPARTMENT BUDGETS.
WE HAVE INCREASES IN PRINT SHOP MATERIALS COST, INCREASES IN FACILITIES REPAIR AND MAINTENANCE, FINE ARTS AND ATHLETIC COMPETITIONS, WE ARE VERY FORTUNATE IN THIS DISTRICT TO HAVE SO MANY TEAMS AND FINE ARTS GROUPS THAT ARE GOING TO STATE LEVEL COMPETITIONS.
TO GIVE YOU AN EXAMPLE, WE TYPICALLY BUDGET, I THINK, FOR TWO OR THREE BANDS TO GO TO STATE MARCHING CONTEST. THIS YEAR, WE HAD FOUR.
SAME THING ON THE ATHLETIC SIDE, WE CONTINUALLY HAVE MORE AND MORE TEAMS ADVANCING FARTHER IN THE PLAYOFFS ACROSS ALL OF OUR SPORTS.
THE COST OF THAT TRAVEL TO THOSE COMPETITIONS AS WELL AS THE INCREASED COSTS IN ATHLETIC OFFICIALS TO OFFICIATE GAMES IS ADDING ABOUT $1.2 MILLION TO OUR BUDGET.
THEN SOFTWARE CONTRACTS, THAT ARE GOING UP BASED ON CONTRACTUAL AGREEMENTS, OPERATIONS, TRANSPORTATION, AND TECHNOLOGY.
I MEANT TO ADD HR ON HERE TOO, THERE WAS AN ITEM ON YOUR LAST BOARD AGENDA FOR A NEW ONBOARDING SOFTWARE FOR HR, THAT'S INCLUDED IN THIS NUMBER.
I WANT TO BE CLEAR, THESE ARE NOT SOFTWARE PROGRAMS ON THE TEACHING AND LEARNING SIDE.
THESE ARE SOFTWARE PROGRAMS ON THE OPERATION BUSINESS ADMINISTRATION SIDE, AND THEY'RE JUST CONTRACTUAL INCREASES.
THEN EQUITY ADJUSTMENTS FOR THE TEACHER PAY SCALE AND ADMINISTRATOR STEPS.
WE TALKED ABOUT, AND I'LL GO BACK OVER IN A MINUTE, AT THE LAST WORKSHOP, WE TALKED ABOUT THE PROPOSED RAISE THAT WOULD BE CONTINGENT ON A TAX RATE INCREASE.
IF WE DO THAT, ONE OF THE THINGS THAT WE WANT TO MAKE SURE IS THAT FOR GROUPS OF PEOPLE WHO WE USE EITHER A HIRING SCALE OR A STEP SCALE, WHICH WOULD BE TEACHERS AND ADMINISTRATORS, SO CAMPUS AND CENTRAL OFFICE ADMINISTRATORS ARE ON A STEP SCALE.
WE WANT TO MAKE SURE THAT WE ARE MAINTAINING EQUITY IN THOSE PAY SCALES.
IN OTHER WORDS, WE'RE NOT HIRING SOMEBODY IN NEW OVER THE SUMMER WITH THE SAME YEARS OF EXPERIENCE AT A HIGHER SALARY THAN SOMEBODY WHO'S CURRENTLY HERE BECAUSE WE HAVE NOT IMPLEMENTED A RAISE OVER THE SUMMER.
THE EQUITY ADJUSTMENT IS ESSENTIALLY MAKING SURE THAT, FOR EXAMPLE, A TEACHER WITH FIVE YEARS OF EXPERIENCE GETS THE EXTRA, I THINK, IT MIGHT BE 400 OR $500 TO GO FROM FIVE YEARS OF EXPERIENCE TO SIX YEARS OF EXPERIENCE AND MATCH UP WITH THAT TEACHER PAY SCALE.
WE'RE NOT HIRING IN A TEACHER WITH THE SAME YEARS OF EXPERIENCE AT A HIGHER SALARY THAN THEY'RE MAKING.
DOES THAT EXPLANATION MAKES SENSE? THAT'S WHAT EQUITY ADJUSTMENTS ARE.
IN TOTAL, YOU CAN SEE HERE WE'RE AT $18.9 MILLION BUDGET DEFICIT BASED ON THE IDENTIFIED COST SAVINGS AND THEN THESE BUDGET INCREASES THAT ARE ON THIS SLIDE.
YOU HAVE YOUR REVENUE AVAILABLE FOR APPROPRIATION, SO THAT'S THE REVENUE THAT WE CAN ACTUALLY SPEND MINUS ANY FLOW-THROUGH REVENUE.
THEN OUR BASELINE BUDGET OF 650.2 THAT WE TALKED ABOUT EARLIER, OUR IDENTIFIED COST SAVINGS, OUR INCREASES, GETS US TO AN $18.9 MILLION PROPOSED DEFICIT.
IF WE LOOK AT THE TYPICAL BUDGET SAVINGS OF $10 MILLION, THAT WOULD BRING THAT DOWN TO ABOUT 9 MILLION COMING OUT OF THE RAINY DAY FUND ASSUMING HISTORY REPEATS ITSELF.
AGAIN, AS A DISCLAIMER, THIS BUDGET DOES NOT INCLUDE A PAY RAISE, EXCEPT FOR THOSE EQUITY ADJUSTMENTS THAT I JUST TALKED ABOUT, BECAUSE THE RECOMMENDED COMPENSATION PLAN RIGHT NOW IS CONTINGENT UPON VATRE TO RAISE THE M&O TAX RATE BY A LITTLE OVER THREE CENTS.
>> I ASK YOU A QUESTION, DOES THAT BUDGET INCLUDE INCENTIVES THAT WE WOULD GIVE THE TEACHERS?
>> IT DOES NOT. WE DO NOT BUDGET FOR INCENTIVES.
WE DON'T BUDGET FOR THEM IN THE REGULAR BUDGET.
ONCE THOSE ARE APPROVED BY THE BOARD, THEN WE AMEND THE BUDGET TO PAY FOR THOSE OUT-OF-FUND BALANCE.
THE $250 CLASSROOM SUPPLY STIPEND THAT WE TYPICALLY PAY OUT IN SEPTEMBER, YOU GUYS REMEMBER WE DO STILL HAVE MONEY IN FUND BALANCE TO CONTINUE TO PAY THAT, AND SO WE TYPICALLY COME TO YOU GUYS IN AUGUST, TELL YOU ABOUT HOW MUCH THAT WOULD COST.
YOU APPROVE THE RESOLUTION TO PAY THAT INCENTIVE OUT AND THEN WE AMEND THE BUDGET AND WE PAY IT OUT.
[01:00:01]
>> THE BUDGET DEFICIT COULD REALLY BE MORE THAN 9 MILLION?
>> NO, BECAUSE WE WOULD BE USING FUND BALANCE.
IF YOU SEE RIGHT HERE, THESE FUND BALANCE ASSIGNMENTS, WE SET MONEY ASIDE YEARS AGO TO PAY FOR INCENTIVES AND THINGS LIKE THAT SO IT COMES OUT OF THAT POT OF MONEY, NOT OUT OF OUR REGULAR BUDGET.
>> IT SAYS THAT THE FUND BALANCE, MAYBE I'M NOT READING THIS RIGHT, IS SHOWING IT'S IN DEFICIT OR THAT'S NOT THE ACTUAL FUND BALANCE.
THAT'S JUST THE FUND BALANCE ASSIGNMENT.
HOW MUCH IS IN THE FUND BALANCE FOR THAT?
>> FUND BALANCE AS OF JUNE 30TH OF 2023, WHICH IS THE CLOSE OF OUR LAST FISCAL YEAR, WAS $254 MILLION.
OF THAT 254 MILLION, 27 WAS SET ASIDE FOR SPECIFIC THINGS.
FOR EXAMPLE, THE $7.5 MILLION THAT WE SPENT IN JANUARY ON THE RETENTION INCENTIVE IS INCLUDED IN THIS, WE USED SOME OF THIS 27 MILLION TO PAY FOR THAT.
THAT'S NOT ADDING TO OUR DEFICIT.
THAT'S NOT ADDING TO WHAT WE'RE USING FROM THE RAINY DAY FUND.
WE ALSO HAVE MONEY IN HERE FOR CLASSROOM SUPPLY STIPENDS.
THERE'S MONEY ASSIGNED IN HERE FOR CATASTROPHIC INSURANCE CLAIMS IF THAT EVER WOULD HAPPEN.
WE SET THAT MONEY ASIDE TO MAKE SURE THAT WE CAN PAY FOR THOSE THINGS IF THEY OCCUR.
WE ALSO SET AN INFORMAL TARGET FOR CASH FLOW.
YOU GUYS KNOW THAT WE DON'T START GETTING REVENUE INTO THE DISTRICT UNTIL NOVEMBER, DECEMBER, JANUARY WHEN TAX BILLS START COMING DUE AND WHEN WE START GETTING STATE AID PAYMENTS.
THAT MEANS THAT WE HAVE TO USE OUR FUND BALANCE TO PAY BILLS UP UNTIL WE START GETTING REVENUE IN.
IT'S ACTUALLY PROBABLY A LITTLE BIT MORE THAN 150 MILLION THAT WE NEED NOW OUR TYPICAL MONTHLY SPEND BETWEEN SEPTEMBER AND MAY WHEN SCHOOLS IN SESSION IS ABOUT 56 - $57 MILLION.
JULY AND AUGUST, THE FIRST TWO MONTHS OF OUR FISCAL YEAR THOUGH ARE MUCH LOWER BECAUSE SCHOOL IS NOT IN SESSION.
WE SET MONEY ASIDE IN FUND BALANCE FROM THIS 254 TO COVER THE CASH FLOW NEEDS, AND THEN THAT GIVES US WHAT'S AVAILABLE FOR A RAINY DAY.
WE EXPECT LIKE I TALKED ABOUT BEFORE TO USE ABOUT $7 MILLION OF OUR RAINY DAY FUND IF ALL OF OUR PROJECTIONS HOLD TRUE, WHICH WOULD LEAVE $70 MILLION IN THAT RAINY DAY FUND FOR THE '24, '25 BUDGET, AND THAT'S WHAT WE'RE LOOKING AT OVER HERE.
>> ARE THERE ANY OTHER THINGS THAT ARE OFF-BUDGET LIKE THE INCENTIVES THAT WE NEED TO CONSIDER?
>> THE INCENTIVES THAT WE HAVE HISTORICALLY PAID OUT ARE THE $250 CLASSROOM SUPPLY STIPEND.
LIKE I JUST SAID, THAT WILL COME TO YOU FOR APPROVAL IN AUGUST AND WE'LL AMEND THE BUDGET AT THAT TIME TO USE SOME OF THIS ASSIGNED FUND BALANCE TO PAY FOR IT.
THE OTHER INCENTIVE, THE RETENTION INCENTIVE THAT WE'VE PAID OUT FOR THE LAST, I BELIEVE, SIX YEARS, WE SET MONEY ASIDE FOR THAT IN 2018.
WE HAD FIVE YEARS' WORTH OF INCENTIVE SET ASIDE.
WE WERE ABLE TO EXTEND THAT ONE MORE YEAR BECAUSE OF ESSER MONEY THAT WE HAD, AND NOW WE'VE EXHAUSTED THAT POT OF MONEY AND SO THERE IS NOT CURRENTLY FUND BALANCE SET ASIDE FOR FUTURE RETENTION INCENTIVES.
>> BUT RIGHT NOW, THERE'S NOTHING ELSE THAT'S GOING TO COME THAT YOU, LIKE WE KNOW THAT THE INCENTIVES ARE GOING TO COME UP, DO WE KNOW IF ANYTHING ELSE THAT'S GOING TO COME UP THAT WOULD CHANGE WHAT THIS LOOKS LIKE?
>> TYPICALLY IN THE FALL WHEN WE RENEW OUR PROPERTY CASUALTY INSURANCE, WE TRY VERY HARD TO NEGOTIATE THOSE PREMIUMS TO STAY AS CLOSE TO THE SAME AS POSSIBLE, BUT THIS YEAR, WE HAD TO AMEND THE BUDGET BY $3 MILLION BECAUSE THOSE PREMIUMS WENT UP.
TYPICALLY IN THE FALL, IF WE HAVE A BUDGET AMENDMENT, THAT'S OUR LARGEST ONE OTHER THAN ANYTHING ELSE THAT MAY BE UNFORESEEN.
BUT AS OF RIGHT NOW, THERE'S NOTHING ELSE THAT I EXPECT TO BE COMING.
AS A REMINDER OF THE PROPOSED RAISE CONTINGENT ON THE VATRE, WE TALKED ABOUT THIS LAST TIME THAT THE PAY RAISE INCLUDED A 3% OF MIDPOINT OR SALARY, WHICHEVER IS GREATER FOR ALL STAFF PLUS MINIMUM WAGE ADJUSTMENTS FROM $14.50 TO 15 AN HOUR AND SO EMPLOYEES AFFECTED BY THAT MINIMUM WAGE ADJUSTMENT WOULD RECEIVE ESSENTIALLY THAT ADJUSTMENT OR THE 3% RAISE.
CAMPUS AND CENTRAL ADMINISTRATOR PAY THAT ARE ON A STEP SCALE WOULD GET THE GREATER OF THE 3% OR THE STEP THAT THEY'RE ON.
[01:05:01]
THEN THIS ALSO INCLUDES A PLAN TO INCREASE THE STARTING TEACHER PAY FROM 59,000 - 60,500.AGAIN, THIS PROPOSAL RIGHT NOW IS NOT IN THE BUDGET.
IT IS CONTINGENT ON A VATRE OF A LITTLE OVER THREE CENTS IN NOVEMBER.
IF WE GO FORWARD WITH THAT AND IF THE VATRE PASSES, RAISES WOULD TAKE EFFECT BY JANUARY OF 2025, MAYBE DECEMBER, JUST DEPENDING ON HOW QUICKLY WE CAN GET THOSE PROCESSED AND WE WOULD MAKE SURE THAT WHATEVER THE TOTAL AMOUNT OF THE RAISE WOULD HAVE BEEN, HAD WE IMPLEMENTED IT OVER THE SUMMER, THAT STAFF WOULD GET THAT TOTAL COST, PROBABLY A PORTION OF IT IN A LUMP SUM IN THE FIRST MONTH, AND THEN THEIR PAYCHECKS WOULD BE MORE EVENED OUT OVER THE SPRING SEMESTER.
SOME OF YOU ASKED IN THE LAST WORKSHOP ABOUT OTHER BENEFITS THAT WE OFFER TO EMPLOYEES JUST TO GET A PICTURE OF THE TOTAL COMPENSATION PACKAGE OR THE TOTAL PACKAGE AVAILABLE.
THIS IS JUST A SUMMARY OF THE BIG THINGS.
WE DO OFFER FIVE STATE DAYS AND FIVE LOCAL DAYS OF ANNUAL LEAVE AND THEN LAST YEAR, WE IMPLEMENTED TWO ADDITIONAL WELLNESS DAYS, SO TWO ADDITIONAL DAYS OFF THAT EXPIRE AT THE END OF EACH YEAR.
THOSE ARE NOT CURRENTLY RECOMMENDED TO GO AWAY SO WE WOULD REINSTATE THOSE NEXT YEAR AS WELL.
WE ALSO HAVE ANNUAL STIPENDS AND IDENTIFIED CRITICAL NEED AREAS.
WE CONTRIBUTE $350 PER MONTH IN MEDICAL PREMIUMS. THAT IS ON THE HIGHER END OF THE RANGE FOR DISTRICTS IN OUR AREA, THERE ARE A FEW DISTRICTS THAT CONTRIBUTE MORE THAN 350.
THERE ARE QUITE A FEW THAT CONTRIBUTE LESS THAN 350.
THERE IS NO RECOMMENDED CHANGE RIGHT NOW TO INCREASE US IN MEDICAL PREMIUM CONTRIBUTIONS.
WE OFFER THE ABILITY FOR EMPLOYEES' CHILDREN TO ATTEND FISD SCHOOLS.
WE CURRENTLY OFFER MATCHING VOLUNTARY RETIREMENT CONTRIBUTIONS SO IF AN EMPLOYEE CONTRIBUTES TO A 457 OR 403B PLAN, WE MATCH 25 CENTS PER DOLLAR UP TO 1% OF THE EMPLOYEE'S SALARY.
WE OFFER MONTHLY WELLNESS REIMBURSEMENTS, IF EMPLOYEES PAY FOR A GYM MEMBERSHIP OR SOMETHING LIKE THAT, THEN WE OFFER REIMBURSEMENT FOR THAT.
WE OFFER FREE FINANCIAL PLANNING SERVICES THROUGH A PROGRAM CALLED FIN PATH.
WE HAVE THE FREE-ON-SITE EMPLOYEE HEALTH CLINIC.
WE STILL HAVE MONEY SET ASIDE TO OFFER THE $250 CLASSROOM TEACHING AND SUPPLY STIPEND.
A COUPLE OF YEARS AGO, WE STARTED OFFERING A 13TH PAY OPTION FOR NEW HIRES.
THAT WAY, WHEN WE HAVE BRAND NEW TEACHERS COMING TO US, THEY DON'T HAVE TO WAIT TWO WHOLE MONTHS TO GET THEIR FIRST PAYCHECK.
WE OFFER THEM THE OPTION TO GET THEIR FIRST PAYCHECK EARLIER AND WE SPREAD THEIR PAY OVER 13 CHECKS INSTEAD OF 12, SO THAT HELPS THEM WITH THEIR PERSONAL FINANCES.
THEN WE ALSO OFFER DISCOUNTED EMPLOYEE CHILDCARE.
I'M GOING TO PAUSE, SEE IF ANYBODY HAS QUESTIONS BEFORE I JUMP INTO THE OPTIONS THAT ARE AVAILABLE TO YOU.
[LAUGHTER] DID THAT SOUND OMINOUS? [LAUGHTER]
>> I MIGHT, BUT I'M GOING TO WAIT AND SEE WHAT YOU'VE GOT ON THE SLIDE BEFORE.
I KNOW THAT THERE WAS ONE OR TWO QUESTIONS, AND I'VE ALSO BEEN ASKED IN SOME OF OUR ONE ON ONE MEETINGS, WHAT DOES IT LOOK LIKE IF THE RAISE IS NOT CONTINGENT ON A VATRE.
I'VE OUTLINED THE THREE SCENARIOS FOR YOU ON THIS SCREEN.
THE CURRENT PROPOSED BUDGET IS HERE.
THAT THE ONLY COMPENSATION PIECE IN THE CURRENT PROPOSED BUDGET IS THE $1.3 MILLION OF EQUITY ADJUSTMENTS.
IF YOU WERE TO INCLUDE THE $15 MILLION RAISE, THAT THREE PERCENT RAISE THAT WE JUST WENT OVER IN THE BUDGET, NOT CONTINGENT ON A TAX RATE INCREASE.
THAT WOULD TAKE YOUR $18.9 MILLION BUDGETED DEFICIT TO 32.6 MILLION.
AGAIN, IF OUR TYPICAL BUDGET SAVINGS HOLDS TRUE AND WE TAKE 10 MILLION OFF THE TOP OF THAT, COULD BE MORE, COULD BE LESS.
I JUST USED 10, THEN THAT BRINGS THE BUDGET DEFICIT, SORRY, I NEED TO QUIT POINTING.
THE BUDGETED DEFICIT FROM 32 MILLION DOWN TO A POTENTIAL REALIZED DEFICIT OF 23.
THAT IS, DIGGING INTO OUR RAINY DAY FUNDS, WHICH WE'RE ESTIMATING WE'LL HAVE ABOUT $70 MILLION, SO YOU CAN KEEP THE 70 MILLION IN YOUR HEAD.
THAT'S HOW MUCH WE WOULD POTENTIALLY USE UP OF THE RAINY DAY FUNDS.
IF A VATRE PASSES, THEN HERE'S THE CHANGE IN THAT, OUR REVENUE AVAILABLE FOR APPROPRIATION WOULD GO UP BY ABOUT $12,
[01:10:01]
11.8 MILLION, AND THEN YOU WOULD HAVE THE COMPENSATION IN HERE, AND SO THEN YOUR BUDGETED DEFICIT BECOMES 20.8.AGAIN, TYPICAL BUDGET SAVINGS, THAT MEANS YOU'RE USING MAYBE $11 MILLION FROM YOUR RAINY DAY FUND.
I DO WANT TO BE CLEAR, THE PROPOSED BUDGET HERE IS THE MOST CONSERVATIVE OPTION.
IT PRESERVES THE LEVEL OF SUPPORT THAT WE CURRENTLY PROVIDE OUR STUDENTS, AND IT PROLONGS THE USE OF OUR RAINY DAY FUNDS.
IT IS FEASIBLE TO DIG INTO OUR RAINY DAY FUND BALANCE FURTHER TO INCLUDE A RAISE THAT'S NOT CONTINGENT ON VATRE.
IF THE VATRE DOES NOT PASS THOUGH, AND WE HAVE TO DIG TOO DEEP INTO OUR RAINY DAY FUNDS, THAT GIVES US LESS TIME ESSENTIALLY TO BALANCE THE BUDGET, WHICH MEANS THAT WE MAY BEGIN PHASING IN BUDGET CUTS BEFORE THE 89TH LEGISLATIVE SESSION BEGINS.
I HAD A COUPLE OF QUESTIONS FROM SOME OF YOU ABOUT, IS IT POSSIBLE? THE ANSWER IS, IT IS POSSIBLE.
IS IT THE MOST CONSERVATIVE? NO, IT DOES NOT PROLONG OUR RAINY DAY FUNDS, BUT THAT'S ESSENTIALLY THE ALTERNATIVE.
DO YOU HAVE QUESTIONS ABOUT THAT BEFORE I GO INTO WHAT IT LOOKS LIKE TO BALANCE THE BUDGET? BECAUSE THAT'S MY NEXT SLIDE.
>> WOULD YOU RATHER WAIT ON THIS UNTIL YOU FINISH.
>> HERE'S WHAT IT LOOKS LIKE TO BALANCE THE BUDGET.
POSSIBLE THINGS THAT WE WOULD BE TALKING ABOUT IF WE DUG DEEP INTO OUR RAINY DAY FUNDS AND WE NEEDED TO BEGIN MAKING CHANGES THAT GET US BACK TO BALANCE.
LET'S START WITH THE REVENUE GENERATING OPTIONS.
WE COULD REIMPLEMENT, PAY TO PARTICIPATE, WHICH WE DID SEVERAL YEARS AGO AND THEN STOPPED DOING.
THAT SHOULDN'T SAY ESTIMATED SAVINGS.
SORRY, THIS IS ESTIMATED REVENUE GENERATED.
THAT BACK WHEN WE DID IT BEFORE, GENERATED ABOUT $1.5 MILLION A YEAR.
WE HAVE TALKED IN PREVIOUS WORKSHOPS ABOUT AN ATTENDANCE CAMPAIGN BECAUSE AS I MENTIONED, OUR ATTENDANCE RATE HAS DROPPED BY ABOUT TWO PERCENT SINCE COVID, WHICH IS PRETTY SIMILAR TO EVERY OTHER DISTRICT IN THE STATE.
ASSUMING WE COULD DO AN ATTENDANCE CAMPAIGN THAT WOULD INCREASE OUR ATTENDANCE RATE BY ONE PERCENT, THAT WOULD BRING IN ABOUT $3.5 MILLION IN REVENUE.
IF WE OPEN ENROLLMENTS TO STUDENTS OUTSIDE OF FRISCO ISD, WE COULD GENERATE ABOUT SEVEN MILLION DOLLARS IF THIS ASSUMES WE ABSORB 1,000 STUDENTS.
THIS DOESN'T ASSUME INCREASING THE NUMBER OF TEACHERS, IT WOULD BE FILLING UP CAPACITY AT OUR EXISTING SCHOOLS WITH OUR EXISTING STAFF.
IF THERE IS A LOT OF DIMINISHING RETURNS WITH THIS ONE LIKE WE TALKED ABOUT IN THE PAST, AT SOME POINT, IF YOU ADD THE MORE STUDENTS YOU ADD, YOU HAVE TO START ADDING STAFF TO ACCOMMODATE THOSE STUDENTS.
THAT SEVEN MILLION DOLLARS WOULD ASSUME ABSORBING 1,000 STUDENTS ACROSS THE DISTRICT.
AGAIN, THAT'S JUST AN ASSUMPTION.
I'M NOT SURE WHETHER OR NOT IF WE WENT DOWN THIS ROAD AND OPENED UP ENROLLMENT, IF WE WOULD GET 1,000 STUDENTS OR NOT, THAT'S JUST A PLACEHOLDER.
THEN WE'VE TALKED A FEW TIMES ABOUT THE POTENTIAL USE OF TIRZ FOR GENERAL FACILITY MAINTENANCE COST.
I BELIEVE WE COULD USE ABOUT 12 TO $15 MILLION OF TIRZ MONEY FOR THAT.
AGAIN, THAT ASSUMES THAT TIRZ REVENUE IS NOT NEEDED FOR DEBT SERVICE OR CAPITAL PROJECTS.
THERE IS A TAX RATE IMPLICATION ON THE DEBT SERVICE SIDE, WE HAVE TO SET A TAX RATE SUFFICIENT TO PAY OUR DEBT SERVICE.
ONE OF THE WAYS THAT WE HAVE MAINTAINED A $0.27 TAX RATE WHILE GOING THROUGH 2018 BOND PROGRAM WAS THROUGH USE OF THE TIRZ REVENUE.
WE WOULD NEED TO CAREFULLY LOOK AT THE PROS AND CONS OF IF THE TIRZ MONEY IS NEEDED TO MAINTAIN THAT DEBT TAX RATE, WHICH WE WILL HAVE FURTHER DISCUSSION ABOUT IN AUGUST BECAUSE WE HAVE FINAL CERTIFIED VALUES THEN AND WE'LL KNOW WHAT OUR TAX RATE NEEDS TO BE.
BUT IF ANY OF THAT IS NEEDED TO MAINTAIN THE TAX RATE, THEN OF COURSE THAT WOULD MAKE A DIFFERENCE ON THE OPERATING SIDE AS WELL.
>> KIM, AS OF RIGHT NOW, WE DON'T NEED THE TIRZ REVENUE FOR DEBT SERVICE OR CAPITAL PROJECTS, AS OF TODAY IS, THAT CORRECT?
IF WE CALL FOR AND PASS A NEW BOND PROGRAM, WE MAY.
>> THEN WE GO INTO BUDGET REDUCTION OPTIONS, AND I'M ALSO NOTICING THAT ONE OF THEM IS BOLD AND IT'S NOT BOLDED FOR ANY REASON.
I'LL FIX THAT BEFORE WE POST THE SLIDE.
IT'S NOT MEANT TO HIGHLIGHT THAT ONE.
[01:15:02]
SORRY. BUDGET REDUCTION OPTIONS WERE LIMITED TO THINGS THAT DON'T IMPACT OUR STUDENT OPPORTUNITY MODEL OR OUR ABILITY TO SUPPORT FUTURE READY LEARNERS.ESSENTIALLY, WE'VE TRIED TO IDENTIFY THINGS THAT MAINTAIN THE INTEGRITY OF OUR ACADEMIC SUPPORT AND MODEL.
THIS ONE IS A SMALL NUMBER IN COMPARISON TO OUR TOTAL DEFICIT, BUT IT IS SOMETHING THAT COMES UP A LOT.
IF WE ELIMINATE DISTRICT WIDE CONVOCATION, WE SAVE A $100,000.
IF WE ELIMINATE OUR 401(A) CONTRIBUTIONS, SO OUR MATCHING CONTRIBUTIONS TO VOLUNTARY RETIREMENT PLANS, THAT ELIMINATES THAT CURRENT BUDGET IS 1.4 MILLION THAT WE COULD SAVE.
WE COULD CLOSE THE EMPLOYEE CLINIC AND SAVE $470,000.
WE COULD ELIMINATE THE WELLNESS DAYS.
THOSE ARE TWO EXTRA DAYS THAT ARE NOT COMMONLY GIVEN IN OTHER DISTRICTS, AND AGAIN, THEY DON'T IMPACT THE CLASSROOM.
IF WE ELIMINATED THE WELLNESS DAYS, WE CURRENTLY BUDGET A MILLION DOLLARS FOR THOSE.
SOME DISTRICTS DON'T OFFER FIVE PERSONAL DAYS.
IF WE WERE TO DO THAT, THAT WOULD SAVE US ABOUT A MILLION DOLLARS.
WE COULD REDUCE OR ELIMINATE BUSING TO AND FROM SCHOOL, WHICH IS NOT REQUIRED BY LAW EXCEPT FOR CERTAIN SPECIAL EDUCATION STUDENTS.
IF WE WENT DOWN THAT ROAD, WE WOULD OF COURSE CONTINUE DOING THINGS THAT ARE REQUIRED BY LAW.
BUT WE COULD SAVE UP TO $5.9 MILLION BY REDUCING OR ELIMINATING TO AND FROM SCHOOL BUSING.
CURRENTLY, AT OUR MIDDLE SCHOOLS, WE DOUBLE BLOCK ILA, MEANING STUDENTS GO TO THEIR ILA CLASS FOR TWO PERIODS INSTEAD OF ESSENTIALLY TWO BLOCKS INSTEAD OF ONE.
IF WE WERE TO NOT DO THAT AND THAT WOULD ESSENTIALLY SAVE US $3.5 MILLION.
IT INCREASES A TEACHERS TOTAL LOAD OF STUDENTS.
THAT'S HOW YOU GENERATE SAVINGS WHEN YOU INCREASE THE TEACHERS TOTAL LOAD, THE NUMBER OF STUDENTS THAT THEY'RE TEACHING, AND THEN YOU DO THAT DISTRICT WIDE, YOU END UP NOT NEEDING AS MANY FTES.
RISING SECONDARY CLASS SIZES IN MIDDLE SCHOOL AND HIGH SCHOOL BY AN AVERAGE OF FOUR STUDENTS FOR CORE CLASSES, I BELIEVE, IS WHAT THIS ONE IS, WOULD SAVE US ABOUT $7.8 MILLION.
ELIMINATING ONE CONFERENCE PERIOD FOR HIGH SCHOOL TEACHERS, WHICH IS NOT UNCOMMON IN OTHER DISTRICTS, WOULD SAVE US ABOUT $11.8 MILLION.
ELIMINATING OUR TEAMING PERIOD FOR MIDDLE SCHOOL TEACHERS WOULD SAVE US ABOUT $6.5 MILLION.
THEN THERE IS AN OPTION WHERE WE COULD ESSENTIALLY RESTRUCTURE AND REZONE ELEMENTARY CAMPUSES TO MAXIMIZE CAPACITY AT ALL OF THOSE SCHOOLS DISTRICT WIDE, WHICH WOULD SAVE US ABOUT $5.8 MILLION.
THESE ARE ALL JUST OPTIONS THAT WOULD GET US TO A BALANCED BUDGET.
WE'RE NOT RECOMMENDING THAT WE DO ANY OF THOSE RIGHT NOW, BUT WE TALKED ABOUT HOW IF WE DEEP TOO FAR INTO OUR RAINY DAY FUNDS, AND IF THE LEGISLATURE DOES NOT PROVIDE ADEQUATE FUNDING GOING FORWARD, WE WILL HAVE TO BALANCE OUR BUDGET, AND THESE ARE THE THINGS THAT WE'VE IDENTIFIED THAT DON'T IMPACT STUDENT LEARNING.
ALSO KNOW THAT IF WE GOT TO THIS POINT, WE WOULDN'T DO EVERYTHING ON THIS LIST.
SOME OF THESE THINGS OVERLAP WITH ONE ANOTHER.
RAISING CLASS SIZES AND TAKING AWAY A CONFERENCE PERIOD, THE COMBINATION OF THOSE TWO THINGS IS PROBABLY NOT SOMETHING THAT WE WOULD RECOMMEND DOING.
WE'RE JUST PUTTING THE WHOLE LIST OUT HERE FOR YOUR VIEWING PLEASURE, I GUESS.
>> I JUST HAVE SOME NOTES. I'M OFFERING THOUGHTS.
I DON'T KNOW IF ANY OF THEM WILL BE QUESTIONS.
>> A LITTLE BIT OF THIS IS DEJA VU FROM A FEW YEARS BACK.
I TALK ABOUT USING FUND BALANCE FOR RAISES RATHER THAN VATRE.
SURFACE BLUSH ON THAT, IT SEEMS LIKE SOMETHING TO BE PRETTY EASY TO DO, ESPECIALLY WHEN YOU LAY OUT THE SLIDE THAT SHOWS THAT WE HAVE, WHAT, AROUND 70 MILLION THAT IS STILL CONSIDERED RAINY DAY FUND.
BUT YOU'VE TALKED IN THE PAST ABOUT CAUTIONING US AGAINST DOING THINGS THAT RECUR ANNUALLY WITH MONEY THAT DOES NOT, AND THE RAINY DAY FUND ONCE USED DOES NOT RECUR
>> VATRE WOULD TO SOME EXTENT.
>> IT'S A MORE LONG-TERM DECISION TO GO THAT ROUTE.
BUT TALKING OUT OF BOTH SIDES OF MY MOUTH, I REALLY, JUST WITH HISTORY, DON'T LIKE THE IDEA OF THE DISTRICT POSITIONING A VOTE OR ELECTION ON WHETHER OR NOT WE SUPPORT GIVING RAISES TO TEACHERS.
[01:20:02]
A LOT OF THEM DON'T LIVE IN THE DISTRICT AND IT PITS THE [NOISE] PEOPLE THAT THEY SERVE AGAINST THEIR WORTH AS A PROFESSIONAL.MOVING FORWARD, THAT I THINK IS A GOOD IDEA AND I WON'T BE HERE TO VOTE ON THAT.
BUT I THINK THE DISTRICT NEEDS THAT VATRE, REGARDLESS.
IT WOULD BE WISE OF US TO POSITION IT NOT ONLY FOR TEACHER RAISES, BUT FOR JUST GENERAL NEEDS FOR THE THINGS THAT YOU THEN PUT ON THE LATER SLIDE BECAUSE I THINK THAT WHILE THERE'S SOME, LET'S NOT CALL IT LOW-HANGING FRUIT, BUT THERE ARE SOME THINGS THERE THAT COULD VERY EASILY SHORE UP THIS DEFICIT BUDGET.
IF I WERE A NEW BOARD MEMBER COMING IN HERE AND LOOKING AT THOSE THINGS, I WOULD SAY, WELL, SHOOT, PROBLEM SOLVED, LET'S GET IT DONE.
BUT YOU ALSO HAVE TO BE VERY CAREFUL BECAUSE I THINK A LOT OF THE THINGS THAT ARE ON THE SHEET ARE ONES THAT MAKE FRISCO ISD WHAT WE ARE AND HAVE REAL MEANINGFUL EFFECT ON STUDENT OUTCOMES.
GOING BACK TO SOME OF THE THINGS I USED TO SAY WHEN WE WERE DEALING WITH THE TRE YEARS AGO, I THINK THAT TEACHERS CAN BE SUPPORTED IN THREE DIFFERENT WAYS.
WE CAN PAY THEM MORE, WE CAN PROVIDE THEM WITH FEWER STUDENTS THAT THEY HAVE TO INTERACT WITH ON A DAILY BASIS AND MAKES IT MORE OF A ONE-ON-ONE EXPERIENCE WITH THEM, AND WE CAN PROVIDE THEM WITH ADDITIONAL SUPPORT STAFF TO TAKE THINGS OFF THEIR PLATES.
CONSIDERING ALL THREE OF THOSE THINGS, I THINK, ARE IMPORTANT AS WE'RE EVALUATING WHAT WE CAN AFFORD TO DO.
I KNOW YOU'VE BEEN PUTTING OUT VIDEOS AND SOLICITING FEEDBACK FROM STAFF ON WORKVIVO.
WE DON'T HAVE DIRECT VISIBILITY AS BOARD MEMBERS TO SEE THAT.
SO HAVING SOME TYPE OF ROLLUP OF THE FEEDBACK THAT YOU'RE GETTING WOULD BE HELPFUL AS WE DECIDE WHICH OF THESE LEVERS, AS BOARD MEMBERS, WE SHOULD PULL.
I CAN THINK OF WHAT I THINK ARE THE BEST THINGS TO MOVE FORWARD WITH, BUT I THINK YOU'RE GOING TO GET A LOT OF DIFFERENT OPINIONS WHEN YOU ASK THE ONES IN THE CLASSROOM.
IS THAT IT? I THINK SO FOR RIGHT NOW. THANKS.
OBVIOUSLY, YOU'VE DONE AN AMAZING JOB, AS ALWAYS, GIVING US A TON OF INFORMATION, A LOT OF WORKSHOPS, A LOT OF THINGS FOR US TO CONSIDER.
I THINK THE VATRE IS INCREDIBLY IMPORTANT.
I THINK HAVING COMMUNITY BUY IN FOR COLLABORATIVE SOLUTION FOR SOME OF THESE ISSUES THAT WE'RE HAVING WHILE WE ARE WAITING ON THE STATE, WHILE WE'RE WORKING ON FIGURING OUT WHAT THIS ENROLLMENT GOING FORWARD LOOKS LIKE BECAUSE WE ARE DOWN.
I THINK THERE'S SO MANY LEVERS THAT ARE GOING TO NEED TO BE PULLED OVER THE NEXT COUPLE OF YEARS.
I THINK THE VATRE IS IMPORTANT REGARDLESS, AND I HAVE NOT LIKED THE WAY THAT IT FEELS TO PLACE A MEANINGFUL RAISE FOR TEACHERS AND STAFF ON A VOTE FROM THE COMMUNITY.
SO I APPRECIATE YOU PUTTING THAT SLIDE TOGETHER AND SHOWING US THAT OPTION.
I AM 100% SUPPORTIVE OF TAKING A BIGGER HIT OUT OF THE RAINY DAY FUND TO BE ABLE TO GIVE OUR STAFF AND OUR TEACHERS A MEANINGFUL RAISE THIS YEAR, AND THEN ALSO ASKING THE COMMUNITY TO SUPPORT US IN THAT WAY.
I THINK BOTH ARE INCREDIBLY IMPORTANT.
WHEN LOOKING AT THAT LIST, THERE ARE SOME BIG ITEMS THAT I THINK THAT THE BOARD, GOING FORWARD, WILL NEED TO DISCUSS.
I KNOW THAT PRIOR ITERATIONS OF BOARDS THAT WE'VE ALL BEEN ON UP HERE, WE'VE SPENT A LOT OF MEANINGFUL TIME TALKING ABOUT THE BLOCK SCHEDULING.
IT WAS A BIG THING THAT WE WENT THROUGH A COUPLE OF YEARS AGO WITH ANNE AND DEBBIE, AND I REMEMBER US REALLY STRUGGLING WITH UNDERSTANDING, NUMBER 1, WHY IT'S SO EXPENSIVE AND ALSO THE BENEFIT OF THAT FOR THAT DOUBLE BLOCK ILA.
BUT ULTIMATELY, IT WAS A UNANIMOUS DECISION BECAUSE IT WAS IMPORTANT FOR STUDENT OUTCOMES.
LOOKING AT THAT, IT'S 3 1/2 MILLION DOLLARS, BUT REMEMBERING EVERYTHING ABOUT THAT AND WHY WE ENDED UP ULTIMATELY GOING IN THAT DIRECTION AND HEARING FROM MIDDLE SCHOOL PRINCIPALS ABOUT THE OUTCOME POTENTIAL FOR STUDENTS, 3 1/2 MILLION DOLLARS AT FIRST BLUSH SEEMS LIKE A LOT.
BUT IT'S NOT SOMETHING THAT I WOULD EVER WANT TO GO BACK ON IF IT'S REALLY CHANGED THE WAY THAT OUR STUDENTS ARE LEARNING AND THE INNOVATION HAPPENING IN OUR CLASSROOMS. I THINK THERE ARE GOING TO HAVE TO BE A LOT OF CONVERSATIONS, LIKE JOHN, MENTIONED HEARING FROM OUR STAFF MEMBERS AS TO HOW THAT WOULD IMPACT THEM.
I THINK THE FIRST PART OF THAT LIST, A LOT OF THOSE CONTRIBUTIONS IN OUR CLINIC THAT WE WERE SO PROUD TO OPEN AND OFFER.
[01:25:07]
A LOT OF THOSE THINGS, WHILE THEY WOULD BE A GREAT SAVINGS, ARE WHY FRISCO ISD IS FRISCO ISD.I KNOW THAT WE'VE REALLY TRIED TO EMPOWER DR. LINTON AND HER TEAM TO HAVE THE VERY BEST WAY TO NOT ONLY RECRUIT, BUT TO RETAIN.
I JUST WONDER WHAT THE ULTIMATE COST WOULD BE IF WE STARTED ELIMINATING SOME OF THOSE THINGS THAT HAVE BEEN SO IMPACTFUL FOR HER TEAM TO BE ABLE TO BUILD FRISCO ISD INTO THE DISTRICT THAT WE ARE TODAY.
I KNOW EVENTUALLY WE'RE GOING TO HAVE TO BALANCE THIS BUDGET, BUT I THINK IT'S EASY FOR US THAT HAVE BEEN UP HERE FOR A WHILE TO LOOK AT THAT AND UNDERSTAND JUST THE DEEP IMPACT OF WHAT, HERE'S A MILLION-DOLLAR SAVINGS.
IT COULD BE VERY EASY AT FIRST BLUSH TO SAY, WELL, SURE, LET'S DO THAT.
OTHER DISTRICTS, THEY DON'T OFFER FIVE DAYS, THEY ONLY OFFER THREE, SO FINE, LET'S DO IT.
BUT THEN WHAT'S THE IMPACT OF PEOPLE LEAVING BECAUSE OF THOSE DECISIONS? IT'S A BALANCE FOR SURE.
I FEEL LIKE I'M TALKING IN CIRCLES, BUT IT'S A LOT TO CONSIDER.
I'M 100% SUPPORTIVE OF US MOVING FORWARD WITH GIVING A MEANINGFUL RAISE AND ALSO DOING VATRE, BUT NOT HAVING THAT BE CONTINGENT UPON THE COMMUNITY SUPPORTING OR NOT SUPPORTING THAT.
I THINK WE SUPPORT OUR TEACHERS REGARDLESS OF WHAT THE COMMUNITY SAYS AT THE BALLOT BOX. THANKS.
AND REALLY, WE'VE HAD A LOT OF IN DEPTH CONVERSATIONS ABOUT THE POSSIBILITIES AS IT RELATES TO THE BUDGET.
WHILE JOHN AND RENE HAVE SHARED A LOT OF MY FEELINGS ABOUT HOW WE DO NEED TO MOVE FORWARD AND JUST BEING SPLIT ON HOW WE WOULD REACH THE ULTIMATE GOAL OF ENSURING THAT OUR TEACHERS ARE TAKEN CARE OF BECAUSE THEY ARE THE HEARTBEAT OF OUR DISTRICT.
LOOKING AT THE BUDGET REDUCTION OPTIONS, I WOULD LIKE TO SEE SOME DATA LIKE THE BLOCK SCHEDULING BECAUSE I WASN'T HERE WHEN IT WAS APPROVED.
IT WOULD BE IMPORTANT FOR ME TO SEE HOW BENEFICIAL IT WAS BEFORE I WOULD MAKE A DECISION TO REDUCE SOMETHING THAT I DIDN'T MAKE A DECISION ON.
I THINK HAVING A MAJORITY OF OUR TRUSTEE BASE WITH LESS THAN TWO YEARS OF EXPERIENCE COLLECTIVELY, I THINK THAT INFORMATION WOULD BE IMPORTANT FOR US TO HAVE.
I DO RESONATE WITH RENE'S SENTIMENTS REGARDING TAKING CARE OF OUR TEACHERS, AND HOPING THAT THE VETOR WILL BE SUCCESSFUL WITH OUR COMMUNITY.
I FEEL THAT WAY BECAUSE WE HAVE BEEN WAITING FOR THE STATE TO COME THROUGH FOR US FOR A LONG TIME, AND WE'VE HAD TO MAKE DECISIONS BASED ON THE FACT THAT THEY HAVE NOT.
I WOULD HATE TO BE A HYPOCRITE IN THAT REGARD AND HAVE OUR TEACHERS WAITING FOR US.
I KNOW THAT YOU HAVE HAD SOLUTIONS FOR US FOR A NUMBER OF YEARS.
I THINK JUST SHARING MY HEART AND EXPRESSING TO YOU THE IMPORTANCE OF MAKING SURE THAT OUR TEACHERS HAVE MEANINGFUL WAYS TO ENSURE ONE RETENTION BECAUSE OUR NEIGHBORING DISTRICTS ARE ABSOLUTELY OFFERING THAT TO THEM AND IT IS DEFINITELY ON A RISK BASIS.
I WOULD RATHER MAKE THE RISK AND HAVE OUR TEACHERS STAY HERE HOME IN FRISCO ISD THAN TO NOT AND THEY WALK AWAY.
>> IF I CAN JUST MAKE A COUPLE COMMENTS ABOUT YOUR COMMENTS.
I HAVE SPENT THE LAST WEEK OR SO RESPONDING TO QUESTIONS FROM STAFF AND THINGS LIKE THAT.
I, OF COURSE, WOULDN'T BE DOING MY JOB UNLESS I PRESENTED YOU GUYS WITH WHAT WE FELT LIKE WAS THE MOST SUSTAINABLE AND CONSERVATIVE FINANCIAL PLAN.
I ALSO RECOGNIZE THAT IT IS A VERY DIFFICULT POSITION TO BE IN TO BE RECOMMENDING THINGS THAT ARE MORE CONSERVATIVE THAN OTHER DISTRICTS AROUND US, AND SO THAT'S WHY I WANTED TO MAKE SURE THAT YOU GUYS SAW THAT THE FEASIBILITY,
[01:30:01]
BUT ALSO THE OTHER SIDE OF THE COIN, THAT THESE BUDGET REDUCTION OPTIONS ARE NOT THINGS THAT WE ARE RECOMMENDING DOING RIGHT NOW.IF WE GET TO THE POINT WHERE WE DO NEED TO RECOMMEND DOING THEM, WE WILL HAVE LOTS OF VERY IN DEPTH DISCUSSIONS WITH DATA ABOUT HOW THESE WILL IMPACT STAFF, STUDENTS, IF AT ALL.
SOME OF THEM DON'T HAVE A DIRECT IMPACT ON THE CLASSROOM.
WE CAN STOP DOING THEM AND WE WOULD BE JUST LIKE EVERY OTHER DISTRICT THAT DOESN'T DO THOSE THINGS.
IT'S ULTIMATELY YOUR DECISION AS A BOARD, AND I WANTED TO MAKE SURE THAT YOU GUYS SAW BOTH OPTIONS.
WHILE I HAVE PREACHED FOR YEARS ABOUT MAKING SUSTAINABLE FINANCIAL DECISIONS, I DON'T THINK THAT'S THE WORLD WE'RE LIVING IN RIGHT NOW, AND I FULLY UNDERSTAND AND RESPECT THAT.
IF I'M HEARING A CONSENSUS FROM THE BOARD THAT WE WANT TO LOOK AT CHANGING THIS BUDGET BEFORE WE FINALIZE IT TO INCLUDE THE RAISE, THEN THAT IS WHAT WE'LL DO WITH THE UNDERSTANDING THAT WE MAY BE COMING BACK IN THE FALL TO HAVE MUCH DEEPER CONVERSATIONS ABOUT SOME OF THE THINGS THAT ARE ON THIS LIST, WHICH IS ABSOLUTELY DOABLE.
>> I ALSO WANT TO SAY THANK YOU, BECAUSE WHILE IT IS DIFFICULT FOR US AS A BOARD TO MAKE THE DECISION, WE DIDN'T SPEND COUNTLESS HOURS LIKE YOU DID TO MAKE SURE THAT THE NUMBERS ALIGN AND TO MAKE SURE THAT THE DISTRICT IS IN GOOD SHAPE FINANCIALLY.
WITH AN EXCEPTION OF JOHN, I DON'T THINK ANYONE ON THE BOARD REALLY UNDERSTANDS THE WORK THAT YOU PUT IN TO MAKE SURE THAT, YOU PUT IT IN LAYMAN'S TERMS FOR ME.
I WON'T SPEAK FOR ANYONE ELSE BUT FOR ME.
TO HELP ME TO UNDERSTAND SCHOOL FINANCE.
YOU'VE DONE AN AMAZING JOB, AND I DON'T WANT YOU TO FEEL IN ANY WAY OR THINK THAT WE ARE NOT SUPPORTIVE OF ALL OF THE AMAZING INFORMATION THAT YOU'VE PLACED BEFORE US.
>> NO, I DON'T FEEL THAT WAY AT ALL.
I FEEL THE APPRECIATION AND SUPPORT.
THANK YOU. OTHER QUESTIONS OR COMMENTS?
>> I WANT TO ADD ONE MORE THING JUST BECAUSE I DON'T KNOW IF I'LL GET ANOTHER SHOT LOOKING AT THIS SLIDE RIGHT HERE.
WHILE I WAS URGING CAUTION ON SOME OF THESE THINGS HERE BEING THINGS THAT REALLY HAVE AN EFFECT ON STUDENT OUTCOMES AND TO BE VERY WARY OF SOME OF THESE HIGH TICKET ITEMS BEFORE WE JUST CHOP THEM WITHOUT MUCH THOUGHT, I DO THINK AS THE DISTRICT MOVES FORWARD AND YOU GET INTO THAT CONVERSATION MAYBE IN THE FALL, THAT SOME OF THOSE THINGS THERE ON THE LEFT, NOT PAY TO PARTICIPATE, BUT ATTENDANCE CAMPAIGN, OPEN ENROLLMENT, THAT THING, WITH SOME ON CAPACITY WITH SOME STUDY ON WAYS TO CONTROL IT AND CONSTRAIN IT.
I THINK THAT FRISCO ISD HAS A GREAT STORY TO TELL, AND A LOT OF PEOPLE WOULD BE VERY EXCITED ABOUT BEING A STUDENT IN FRISCO ISD WHO AREN'T CURRENTLY.
I'M NOT SAYING OPEN THE FLOODGATES, BUT THAT THING, I THINK, COULD BE A REALLY NICE ADDITION TO THIS DISTRICT, ESPECIALLY AS THE STATE CHARGES FORWARD WITH INCREASED COMPETITION. THAT'S IT.
>> LET ME SAY IT. I JUST WANT TO TELL YOU I APPRECIATE YOU PUTTING THIS TOGETHER ALSO.
FOR ME, MY PERSPECTIVE, I REALLY LIKED THE IDEAS WHERE HE WAS COMING FROM ON FIGURING OUT WAYS TO GENERATE REVENUE.
I LIKE TO DISCUSS HOW, IF THESE EVER BEEN LOOKED AT IN DETAIL, ARE WE CONSIDERING THEM? WHERE ARE THEY AT? I KNOW I'M NOT ASKING YOU THAT RIGHT NOW, BUT I'D REALLY LIKE TO EXPLORE HOW DO WE GET HERE.
IN THIS UNCERTAIN BUDGET ENVIRONMENT, HOW DO WE TAKE MORE CONTROL OURSELVES AND NOT DEPEND ON THE STATE TO DO EVERYTHING FOR US.
THANKS FOR PUTTING THIS TOGETHER, AND THOSE ARE SOME THINGS MAYBE WE COULD TALK ABOUT IN THE FUTURE.
I THINK I COULD SPEAK FOR EVERYONE ON ISD WHEN I SAY THAT WE WOULD ABSOLUTELY RECOMMEND THINGS THAT GENERATE REVENUE BEFORE WE RECOMMEND CUTTING THINGS THAT MAKE FRISCO UNIQUE.
WE HAVE WORKING GROUPS GOING ON RIGHT NOW AND HAVE HAD THEM FOR SOME TIME NOW, EXPLORING THINGS LIKE OPEN ENROLLMENT.
THAT TAKES TIME TO THINK THROUGH WHAT THAT LOOKS LIKE, HOW THAT CHANGES BOARD POLICY, HOW WE IMPLEMENT THAT WITH FIDELITY, THAT THING, AND WE'VE BEEN STUDYING THAT FOR A WHILE AND WE'LL CONTINUE TO STUDY THAT.
WHEN WE HAVE A SOLID PLAN FOR HOW THAT MIGHT HAPPEN IN THE FUTURE,
[01:35:05]
THEN WE'LL DEFINITELY HAVE SOME WORKSHOPS AND DO SOME DEEP DIVES INTO WHAT THAT LOOKS LIKE.SAME THING FOR ALL OF THE THINGS ON THE LEFT SIDE OF THE SCREEN FOR REVENUE GENERATING OPTIONS.
BUT THAT IS SOMETHING THAT WE HAVE BEGUN STUDYING AND BEGUN LOOKING AT WHAT MIGHT THAT LOOK LIKE FOR THE DISTRICT IF WE WERE TO PUT THAT INTO PLACE.
>> KIMBERLY, THERE WERE A FEW SLIDES BACK WHERE YOU WERE SHARING WITH US HOW MUCH EACH ENTITY OR EACH DEPARTMENT, WHAT THE COST WOULD BE FOR EACH DEPARTMENT.
RIGHT THERE. I DO HAVE A QUESTION REGARDING WHEN YOU SAY CENTRALIZED STAFF WITH THE CLASSROOM TEACHERS AND OUR CLASSROOM TEACHERS VERSUS OUR CLASSROOM AIDS.
ARE YOU SAYING THAT 13 CENTRALIZED CLASSROOM TEACHERS AND 22 CENTRALIZED CLASSROOM AIDS, AND THEN ALSO THE 20 RESOURCE, THAT TOTALS 3 MILLION?
>> I KNOW YOU CAN'T GIVE THAT TO US TODAY, IS IT POSSIBLE TO SHARE WITH THE BOARD THE DIFFERENCE THAT WE HAVE TO MAKE UP BETWEEN WHAT THE STATE GIVES US, IS THAT POSSIBLE? I KNOW THAT EVERYONE HAS DIFFERENT NEEDS.
>> ABSOLUTELY. FOR SPECIAL FUNDING?
>> YES. IN FACT, I APOLOGIZE, I THINK I OWE YOU THAT FROM A PREVIOUS WORKSHOP.
I THINK YOU MIGHT HAVE ASKED ME FOR THAT.
I WILL GET THAT TO YOU IN HOME BASE.
>> I THINK I DID ASK FOR THAT ONE AS WELL.
>> YOU DID, AND I HAVE NOT GOTTEN THAT PUT TOGETHER YET, BUT I WILL.
>> I APPRECIATE IT. THEN, HOW MANY CENTRAL ADMINISTRATION STAFF WOULD YOU SAY THAT WE HAVE THAT ARE COMMITTED TO THE SPED DEPARTMENT, REFERS TO SLIDE D.
>> CENTRAL ADMINISTRATION STAFF IN THE SPED DEPARTMENT.
>> I KNOW IT'S THE WHOLE FLOOR, BUT I'M JUST WONDERING.
>> THIRTEEN ADMINISTRATIVE STAFF.
WE HAVE A NUMBER OF STAFF IN THE SPED DEPARTMENT THAT ARE ITINERANT.
THEY GO OUT AND DIRECTLY SERVE STUDENTS THEY MAY BE HOUSED ON THE SECOND FLOOR AS SORT OF A HOME BASE, BUT THEY GO AND SERVE STUDENTS AT CAMPUSES.
BUT I'M HEARING THIRTEEN ADMINISTRATIVE STAFF IN THE SPED DEPARTMENT.
>> THEN THEY DISPERSE OUT AMONG THE CAMPUSES WHERE SERVICES ARE OFFERED?
>> NO. HOW MANY AT ITINERANT STAFF DO YOU HAVE, GARETT? COME ON UP. TAKE THE MIC.
>> IN THE SPED DEPARTMENT IN GENERAL, WE HAVE ABOUT, I THINK IT'S 392 STAFF.
THAT INCLUDES THOSE ADMINISTRATIVE POSITIONS.
THE 392 STAFF, THE MAJORITY OF THOSE MINUS THOSE ADMINISTRATIVE POSITIONS, THE RESPONSIBILITIES ARE TO GO OUT AND PROVIDE SUPPORT ON CAMPUSES.
THEY ARE SOME OF OUR EVALUATION STAFF THAT ARE DOING THOSE EVALUATIONS FOR CHILD FIND.
WE'RE ALSO PROVIDING DIRECT SERVICES TO STUDENTS LIKE SPEECH THERAPY, OCCUPATIONAL THERAPY, THEY ARE ALL FOCUSED IN ON CAMPUS SUPPORT AND STUDENT SUPPORT.
>> WE HAVE 392 STAFF AND 13 OF WHICH ARE AT MAIN LEVEL?
OTHER QUESTIONS? YOU WANT ME TO GO BACK TO THAT, JUST IN CASE?
>> I LOOK FORWARD TO THE INFORMATION THAT WE REQUESTED.
>> I CAN TELL YOU OFF THE TOP OF MY HEAD THAT FOR SPECIAL EDUCATION, WE SPEND ABOUT 150% OF OUR ALLOTMENT, BUT I WILL GET YOU ACTUAL NUMBERS.
>> BEFORE WE CLOSE OUT, JUST A LITTLE BIT OF NEXT STEPS AND A TIMELINE OF EVENTS.
LIKE I MENTIONED BEFORE, BY MAY 3RD, YOU WILL RECEIVE THE NEAR FINAL BUDGET BY FUNCTION, THAT ONE PAGE THING THAT YOU WILL BE ASKED TO ADOPT.
[01:40:02]
I'LL PUT THAT IN HOME BASE FOR YOU.I WILL UPDATE IT BETWEEN NOW AND THEN TO INCLUDE THE RAISE THAT WE DISCUSSED WITH A LARGER DEFICIT INTO OUR RAINY DAY FUND.
BY MAY 5TH, WE HAVE TO POST OUR NOTICE OF PUBLIC HEARING ON THE BUDGET.
THE FINAL BUDGET WORKSHOP WILL BE ON MAY 8TH.
AT THAT WORKSHOP, IT'S GOING TO BE A LITTLE BIT DIFFERENT.
YOU'RE GOING TO HEAR FROM PEOPLE THAT AREN'T ME TO GIVE YOU SOME INSIGHT INTO THE WORK THAT'S BEEN DONE SO FAR THIS YEAR, AS WELL AS SOME INSIGHT INTO SOME OF THE REASONS WHY WE HAVE SOME OF THE THINGS ON THAT LIST OF POTENTIAL BUDGET CUTS.
WHAT I WANT TO DO IS JUST GIVE YOU GUYS A CLOSING ARGUMENT, SO TO SPEAK.
JUST AN OVERVIEW OF ALL THE THINGS THAT YOU'VE HEARD AND ALL THE WORK THAT'S GONE INTO IT JUST SO YOU CAN FEEL FULLY INFORMED TO MAKE YOUR BUDGET DECISION.
THE BUDGET AND COMPENSATION PLAN ADOPTION WOULD BE ON MAY 15TH, AND THEN IN AUGUST, WE'LL COME BACK AND TALK ABOUT THE TAX RATE.
AGAIN, WE'LL ALSO BE TALKING ABOUT A POTENTIAL 2024 BOND PROGRAM IN AUGUST AS WELL.
THE TAX RATE IMPLICATIONS RELATED TO BOTH THE BOND PROGRAM AND THE VADER ON THE M&O SIDE WILL BE DISCUSSED PROBABLY IN A SPECIAL WORKSHOP OR TWO IN AUGUST, ONCE WE GET THOSE FINAL CERTIFIED VALUES.
>> KIMBERLY, THANK YOU SO MUCH FOR SHARING THAT ONE PIECE WHERE YOU SAID THE NEXT BUDGET WORKSHOP?
>> WE'LL HEAR FROM OTHER STAKEHOLDERS.
>> YES. YOU'LL HEAR FROM SOME IST MEMBERS, YOU'LL HEAR FROM SOME CAMPUS PRINCIPALS, I BELIEVE.
YOU'LL GET TO HEAR ABOUT THIS BUDGET WORK FROM SOMEBODY OTHER THAN ME.
>> WELL, WE CERTAINLY APPRECIATE HEARING IT FROM YOU, FIRST OF ALL, AND I KNOW THAT YOU ALL WORK ACROSS DEPARTMENTS ON BUDGET ITEMS AND THINGS OF THAT NATURE, BUT I REALLY APPRECIATE YOU CONSIDERING OR THINKING OF DOING THAT BECAUSE IT IS IMPORTANT TO HEAR FROM OTHER DEPARTMENTS AS IT RELATES TO THE BUDGET, SO THANK YOU FOR MENTIONING THAT.
>> ABSOLUTELY. I COME AND PRESENT THESE RECOMMENDATIONS TO YOU GUYS, BUT YOU DON'T HAVE DEEP INSIGHT INTO THE HOURS OF MEETINGS THAT I FORCE THESE GUYS TO SIT IN WITH ME AND TALK ABOUT THESE THINGS, SO YOU'LL GET A CHANCE TO HEAR FROM THEM ON THAT WORK.
>> I AM FINISHED IF YOU GUYS DON'T HAVE ANY OTHER QUESTIONS.
>> BOARD, ARE THERE ANY ADDITIONAL QUESTIONS? IF NOT, IT IS 10:46, AND WE'RE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.