[00:00:02]
>> WE HAVE FIVE TRUSTEES PRESENT,
[1. Discussion regarding 2025-2026 District Budget]
AND WITH THAT, MRS. SMITH.>> THANK YOU. GOOD EVENING, Y'ALL.
TONIGHT'S BUDGET WORKSHOP, WE'RE GOING TO GO THROUGH QUITE A BIT OF INFORMATION THAT WE HAVE ALREADY HAD A CHANCE TO GO THROUGH IN INDIVIDUAL MEETINGS, AND THEN WE HAD ONE CLOSED SESSION MEETING TO TALK ABOUT SOME PERSONAL STUFF.
A LOT OF THIS IS GOING TO BE REPEAT FOR SOME OF THE CONVERSATIONS THAT WE'VE BEEN HAVING EITHER AS A GROUP OR INDIVIDUALLY OVER THE PAST MONTH OR SO, BUT BECAUSE WE HAVE NOT HAD A FULL BLOWN BUDGET WORKSHOP THAT'S OPEN TO THE PUBLIC, I DO WANT TO MAKE SURE THAT WE START AT THE BEGINNING AND GO THROUGH SOME OF THESE THINGS.
I MAY SPEED THROUGH IT A LITTLE BIT.
STOP ME IF YOU NEED ME TO CLARIFY ANYTHING OR IF YOU HAVE ANY QUESTIONS.
WE'RE GOING TO TALK ABOUT THE BUDGET PROCESS START TO FINISH.
WE'RE GOING TO TALK ABOUT SOME OF THE CRITICAL FACTORS INFLUENCING THE BUDGET, WHAT OUR PROCESS AND TIMELINE IS FOR THIS YEAR.
I'LL GIVE YOU AN UPDATE ON WHERE WE'RE AT FOR THE '24-'25 SCHOOL YEAR THAT WE'RE CURRENTLY IN, AND THEN WE'LL TALK ABOUT THE PRELIMINARY BUDGET FOR NEXT YEAR AND SOME PRELIMINARY RECOMMENDATIONS.
ONE OF THE THINGS THAT I WILL REMIND YOU IS THAT THIS IS ALL A WORKING DRAFT AS WE START TALKING ABOUT NEXT YEAR.
IT'S STILL IN PROGRESS AND IT WILL CONTINUE TO BE IN PROGRESS UNTIL YOU GUYS ADOPT IT IN JUNE.
THE THREE BIG THINGS THAT WE TALK ABOUT EVERY YEAR WHEN WE START THE BUDGET PROCESS ARE THE BIG CRITICAL FACTORS THAT INFLUENCE THE AMOUNT OF REVENUE THAT WE HAVE AVAILABLE TO SPEND.
IN THE PAST, WE HAVE TALKED ABOUT HOW HARD IT IS TO PROJECT FOR THE RAPID ENROLLMENT GROWTH THAT WE HAVE BEEN LIVING FOR THE PAST COUPLE OF DECADES.
NOW, WE ARE LOOKING AT PROJECTING FUTURE BUDGETS BASED ON SOMEWHAT OF AN ENROLLMENT DECLINE.
I'LL SHOW YOU A GRAPH HERE IN A SECOND THAT SHOWS WHAT OUR DEMOGRAPHERS HAVE PUT TOGETHER FOR THE NEXT FEW YEARS TO SHOW YOU WHAT THAT LOOKS LIKE AND WHAT WE'RE PLANNING FOR.
THIS YEAR, THE '24-'25 SCHOOL YEAR, WE HAVE 1,300 STUDENTS LESS THAN WE DID LAST YEAR.
THAT'S BASED ON THE OCTOBER PM SNAPSHOT THAT HAPPENS THE LAST FRIDAY IN OCTOBER.
THEN ALSO, OUR ATTENDANCE RATE HAS IMPROVED A LITTLE BIT, BUT WE'RE STILL NOT BACK TO PRE-COVID LEVELS.
I'LL SHOW YOU A LITTLE BIT OF AN ATTENDANCE GRAPH HERE IN A MINUTE, TOO.
WE KNOW THAT THE WAY THE FUNDING FORMULA WORKS, IT'S BASED ON THE NUMBER OF KIDS ENROLLED IN THE DISTRICT, BUT ALSO HOW OFTEN THEY COME TO SCHOOL.
BOTH OF THOSE THINGS ARE IMPACTING THE AMOUNT OF REVENUE THAT WE HAVE AVAILABLE TO SPEND.
THE ECONOMY, AGAIN, THIS HAS BEEN ON THE SLIDE FOR THE LAST SEVERAL YEARS NOW.
WHILE INFLATION HAS SLOWED DOWN A LITTLE BIT, WE ARE STILL RECOVERING FROM THE RAPID INFLATION THAT WE HAD OVER THE PAST SEVERAL YEARS, AND YOU ALL KNOW BECAUSE WE'VE BEEN DOWN IN AUSTIN TALKING TO OUR LEGISLATORS, THAT THE SCHOOL FUNDING FORMULA HAS NOT BEEN SUBSTANTIALLY UPDATED SINCE 2019, AND WE ALL KNOW WHAT INFLATION HAS DONE SINCE THEN.
THEN OF COURSE, THE 89TH LEGISLATURE IS CURRENTLY IN SESSION, AND WHILE WE DO EXPECT FUNDING TO COME OUT OF THIS SESSION, WE ONE, DON'T KNOW HOW MUCH, AND TWO, DON'T KNOW HOW THE FUNDING MIGHT BE DIRECTED.
WE DON'T KNOW WHAT STRINGS WILL BE ATTACHED.
FOR EXAMPLE, THE SENATE RIGHT NOW IS TALKING A LOT ABOUT TEACHER RAISES AND TEACHER RAISES ONLY, AND NOT NECESSARILY MORE FLEXIBLE MONEY TO DO OTHER THINGS, WHILE THE HOUSE IS TALKING ABOUT MORE FLEXIBLE MONEY AND LESS ABOUT DIRECT TEACHER RAISES.
WE'RE GOING TO HAVE TO WORK OUR WAY THROUGH THE SESSION TO FIGURE OUT WHERE WE END UP.
I EXPECT IT WILL BE SOME COMBINATION OF BOTH, BUT ANY ADDITIONAL FUNDING WILL BE IMPACTED BY HOW WE'RE DIRECTED TO SPEND IT BY THE LEGISLATURE.
HERE IS THE IN A NUTSHELL SLIDE ABOUT THE INFLATION FUNDING GAP.
THE TOP GRAPH IS FROM THE FUND SCHOOLS FIRST WEBSITE.
IT SHOWS FROM THE LEGISLATIVE BUDGET BOARD, HISTORIC INVESTMENTS IN PUBLIC EDUCATION AT A STATE WIDE LEVEL.
THAT'S WHY IT'S ALL BILLIONS OF DOLLARS.
YOU CAN SEE THAT IN 2021, IT POPPED UP SIGNIFICANTLY BECAUSE OF COVID STIMULUS FUNDING, AND THEN IT'S COME BACK DOWN.
ONE THING THAT I WILL SAY AND THAT WE TALKED TO OUR LEGISLATORS ABOUT IS WHILE FUNDING OVERALL AT THE STATE LEVEL HAS INCREASED, PRETTY MUCH EACH YEAR IN THIS GRAPH, THE BUYING POWER OF THAT MONEY HAS DECREASED.
[00:05:02]
IF YOU COMPARE WHERE WE'RE AT TODAY TO WHERE WE WERE IN 2019, THE REASON THAT WE'RE USING 2019 IS THAT'S BECAUSE WHEN HOUSE BILL 3 WAS PASSED, IT WAS PRETTY MUCH UNANIMOUS ACROSS BOTH THE HOUSE AND THE SENATE THAT THIS WAS A GREAT BILL FOR PUBLIC EDUCATION.THE FUNDING FORMULA WAS "FIXED".
IT WAS A LANDMARK BILL THAT PROVIDED GREAT FUNDING TO PUBLIC SCHOOLS IN TEXAS.
WE'RE COMPARING OURSELVES BACK TO THEN WHEN WE HAD NEAR UNANIMOUS CONSENT, THAT IT WAS ALL THE FUNDING WAS GOOD FOR PUBLIC SCHOOLS.
IF YOU COMPARE WHERE WE'RE AT TODAY BACK TO 2019, IT'S A $1,340 DIFFERENCE IN THE BASIC ALLOTMENT THAT WE GET PER STUDENT. THAT'S WHAT IT EQUATES TO.
IF YOU PUT THAT IN FRISCO ISD TERMS, THAT'S $105 MILLION IN OPERATING REVENUE ANNUALLY.
THAT'S WHAT THAT 1,340 WOULD GIVE US.
NOW, WE DON'T EXPECT TO GET $1,300 IN THE BASIC ALLOTMENT FROM THE STATE.
THAT WOULD COST THE STATE $20 BILLION, AND THEY DON'T HAVE $20 BILLION TO SPEND.
THE HOUSE SCHOOL FINANCE BILL JUST CAME OUT LAST WEEK.
IT INCLUDES A $220 INCREASE IN THE BASIC ALLOTMENT, WHICH I SHOULD HAVE RUN TO TELL YOU HOW MUCH THAT WOULD GIVE US, BUT I HAVE NOT DONE THAT YET.
IT'S CLOSING THE GAP, BUT IT'S NOT CLOSING THE GAP.
ANOTHER THING TO BE AWARE OF THAT WE'RE TALKING TO OUR LEGISLATORS ABOUT IS THE COSTS THAT EXCEED STATE FUNDING IN MANY AREAS, SPECIFICALLY SPECIAL EDUCATION.
STATEWIDE, WE HAVE A $2.2 BILLION FUNDING GAP IN SPECIAL EDUCATION.
IN FRISCO ISD, WE HAVE A $41.5 MILLION FUNDING GAP IN SPECIAL EDUCATION.
THE FUNDING GAP MEANS IT'S THE DIFFERENCE BETWEEN WHAT WE SPEND AND WHAT WE ACTUALLY GET IN REVENUE FOR THAT PROGRAM.
TRANSPORTATION IS SOMETHING THAT DOESN'T GET TALKED ABOUT AT THE STATE LEVEL VERY OFTEN, BUT THERE IS A PRETTY SIGNIFICANT FUNDING GAP THERE AS WELL, $1.6 BILLION STATEWIDE AND $14 MILLION FOR FRISCO ISD.
THEN SAFETY AND SECURITY, THAT STATEWIDE NUMBER WAS BEFORE SCHOOL DISTRICTS WERE REQUIRED TO IMPLEMENT HOUSE BILL 3, WHICH IS THE ARMED SECURITY OFFICER AT EVERY CAMPUS, AND STILL NOT EVERY DISTRICT ACROSS THE STATE HAS IMPLEMENTED SOMETHING.
THEN IN FRISCO ISD, SAME THING, PRE-HOUSE BILL 3, WE HAVE A $4.8 MILLION SPENDING GAP IN SAFETY AND SECURITY FOR OUR SRO PROGRAM.
THEN YOU CAN SEE HERE JUST SOME INFLATIONARY INCREASES THAT WE'VE EXPERIENCED IN FRISCO ISD SINCE 2020.
A 37% INCREASE IN FUEL, 180% INCREASE IN PROPERTY AND CASUALTY INSURANCE, 29% INCREASE IN UTILITIES, AND ABOUT A 14% INCREASE IN EMPLOYEE COMPENSATION. YES.
>> QUESTION ON THE SLIDE. IS THERE ANYTHING ADDRESSING INSURANCE GOING THROUGH THE LEGISLATURE THIS GO ROUND THAT YOU'RE AWARE OF THAT COULD IMPACT US, OBVIOUSLY, THE INFLATION IMPACT ON INSURANCE IS MULTIPLES.
>> SIGNIFICANT, YES. [LAUGHTER]
>> IS THERE ANYTHING TO HELP ADDRESS THAT?
>> THAT'S A GREAT QUESTION. I ACTUALLY DID SEE SOMETHING IN A BILL LAST WEEK THAT WOULD PROVIDE A GENERAL INSURANCE ALLOTMENT, BUT ONLY FOR CERTAIN AREAS OF THE STATE, AND IT'S ALL THE COASTAL AREAS.
WHILE OUR INSURANCE HAS GONE UP BY 180%, THE COASTAL AREAS HAVE GONE UP SIGNIFICANTLY MORE.
>> MY QUESTION IS A LITTLE DIFFERENT. IT'S NOT SO MUCH.
IS THERE A BUDGETARY ALLOTMENT? IS THERE ANYTHING GOING THROUGH THE LEGISLATURE THAT IS ADDRESSING SOME OF THE INSURANCE INCREASES ACROSS THE BOARD? I KNOW WE'RE NOT ALONE. I KNOW IT'S THROUGH A LOT OF DIFFERENT STATES.
I WOULD IMAGINE THERE IS, I JUST DON'T KNOW WHAT.
>> I HAVE NOT SEEN ANYTHING YET.
OF COURSE, WE ARE KEEPING AN EYE OUT ON THOSE TYPES OF THINGS.
I HAVEN'T SEEN ANYTHING YET THAT WOULD HAVE AN IMPACT ON US.
IT WOULD BE GREAT IF IT DID, BUT WE ARE NOT ALONE.
I WAS ON A CALL A COUPLE OF WEEKS AGO WITH SCHOOL DISTRICTS FROM ALL OVER THE STATE, AND THE PERSON LEADING THE CALL ASKED EVERYBODY TO TYPE IN THE CHAT, HOW MUCH OUR INSURANCE HAD GONE UP, AND FROM SMALL DISTRICTS TO LARGE DISTRICTS, EVERYBODY WAS PUTTING IN THEIR NUMBER, AND ACROSS THE BOARD, IT'S DOUBLED ALMOST FOR EVERY SCHOOL DISTRICT.
I WOULD SAY MAYBE EVEN MORE THAN DOUBLED IN THE COASTAL AREAS.
>> PIGGYBACK OFF OF WHAT MARK [INAUDIBLE] IS THERE A TIME FRAME WHERE WE FIND OUT WHAT THE INCREASE WILL BE?
[00:10:06]
I REMEMBER WHEN WE GAVE RAISES TO OUR TEACHERS LAST YEAR, ALMOST IMMEDIATELY, THEIR NOTIFICATION ABOUT INSURANCE.>> FOR HEALTH INSURANCE? YES, FOR HEALTH INSURANCE, WE, OF COURSE, ARE AT THE MERCY OF TRS.
THE TRS BOARD USUALLY MEETS AND PUTS THOSE THINGS OUT IN JUNE.
SOME YEARS WHEN IT'S A LEGISLATIVE YEAR, IT'S A LITTLE BIT LATER BECAUSE TRS IS ALSO WAITING ON THE LEGISLATURE TO SEE IF THEY'RE GOING TO BE APPROPRIATED ANY ADDITIONAL MONEY TO HELP THEM BUY DOWN PREMIUMS. I EXPECT IT WILL BE LATER THIS YEAR.
IT IS VERY RARELY BEFORE STAFF GET OUT FOR SUMMER BREAK.
IT IS, I WOULD SAY 50% OF THE TIME BEFORE WE ADOPT OUR BUDGET.
A LOT OF TIMES WE HAVE A GOOD ESTIMATE THAT WE CAN BUILD INTO OUR BUDGET, OR WE CAN JUST LOOK AT HOW MUCH IT'S INCREASED OVER THE PAST FEW YEARS.
WE DO ESTIMATE THOSE THINGS, BUT WE'RE AT THE MERCY OF THE STATE ON THAT ONE FOR SETTING PREMIUMS.
>> KIM, A COUPLE OF QUICK QUESTIONS.
ONE IS, IS THERE AN EQUIVALENT OF THE SENATE BILL FOR THE TEACHER RISES IN THE HOUSE AT THIS TIME?
THEY BOTH HAVE THEIR SCHOOL FUNDING BILLS.
THE SENATE SCHOOL FUNDING BILL IS A TEACHER PAY RAISE BILL, AND THE HOUSE'S SCHOOL FUNDING BILL IS REALLY, I WOULD CALL IT AN OMNIBUS BILL BECAUSE IT'S GOT AN INCREASE IN THE BASIC ALLOTMENT.
IT'S GOT SOME CHANGES TO EXISTING ALLOTMENTS.
IT'S MUCH MORE WELL ROUNDED THE HOUSE'S VERSION IS THAN THE SENATE'S VERSION, WHICH IS REALLY JUST FOCUSING ON TEACHER PAY RAISES AT THIS TIME.
BOTH OF THOSE BILLS DO EXPAND THE TEACHER INCENTIVE ALLOTMENT, BUT THE SENATE'S VERSION NOT ONLY EXPANDS TEACHER INCENTIVE ALLOTMENT, BUT IT ALSO DIRECTS A SPECIFIC DOLLAR AMOUNT PAY RAISE TO EVERY TEACHER.
>> I KNOW IT'S DIFFICULT TO EXPECT WHAT WILL COME OUT OF THESE TWO BECAUSE THERE'S A LOT OF DISCUSSION HAPPENING, BUT WHAT ARE THE CHANCES THAT BOTH OF THEM WILL GET APPROVED.
>> I THINK THAT WE'RE GOING TO END UP WITH SOME COMBINATION.
I THINK WE'LL END UP WITH SOME AMOUNT OF MONEY DIRECTED TO A TEACHER PAY RAISE AND THEN SOME AMOUNT OF MONEY IN THE BASIC ALLOTMENT.
I THINK THAT WE WILL SEE A CHANGE IN THE WAY THAT THE SPECIAL EDUCATION ALLOTMENT WORKS.
BOTH CHAMBERS HAVE BEEN SERIOUSLY LOOKING AT THAT.
THE HOUSE'S BILL HAS SOME MINOR ALLOTMENTS IN IT THAT I THINK IT'S TOO EARLY TO TELL IF THOSE WILL MAKE IT INTO THE FINAL BILL OR NOT.
THERE'S A FINE ARTS ALLOTMENT.
THERE'S A AT GENERAL INSURANCE ALLOTMENT.
THOSE ARE THE TWO THAT I REMEMBER OFF THE TOP OF MY HEAD.
IT'S TOO EARLY TO TELL IF THOSE WILL MAKE IT IN.
I THINK WE'LL END UP WITH A COMBINATION.
THAT'S WHERE WE'RE AT WITH THE ECONOMY AND WITH THE LEGISLATURE, AND THEN THE THIRD PIECE IS ENROLLMENT.
NOW WE'RE AT THE POINT IN OUR DISTRICT'S HISTORY WHERE WE'RE PLANNING FOR ENROLLMENT DECLINE.
WHAT I'VE PUT UP HERE ON THE SCREEN FOR YOU IS THE CURRENT YEAR, LAST YEAR, AND THEN THE NEXT THREE YEARS PROJECTED FROM OUR EXTERNAL DEMOGRAPHER.
YOU CAN SEE THAT WE ARE AT JUST OVER 65,000 STUDENTS FOR THE SCHOOL YEAR.
WE'RE PROJECTING TO BE AT 64,118 FOR NEXT SCHOOL YEAR.
WHEN WE TALK ABOUT THE PRELIMINARY BUDGET, THAT ENROLLMENT DECLINE HAS BEEN FACTORED IN.
A FEW KEY REASONS THAT WE'VE BOILED IT DOWN TO FOR THIS ENROLLMENT DECLINE, ONE, WE HAVE FEWER KINDERGARTNERS ENTERING THAN WE HAVE SENIORS GRADUATING.
WE HAVE A LARGER SENIOR CLASS LEAVING AND THEN NOT AS MANY KINDERGARTNERS COMING IN TO FILL THOSE SEATS WHEN YOU LOOK DISTRICT WIDE.
WE ALSO ARE LOSING MORE STUDENTS TO PRIVATE CHARTER, HOMESCHOOL.
SCOTT AND I WERE LOOKING AT THE DATA A LITTLE MORE IN DEPTH JUST THIS AFTERNOON, AND WHEN YOU LOOK AT THOSE THREE PRIVATE, CHARTER, HOMESCHOOL, IT SEEMS TO BE HEAVIER ON THE CHARTER AND HOMESCHOOL TO A DEGREE.
HOMESCHOOL IS REALLY HARD TO FIGURE OUT BECAUSE PEOPLE DON'T REPORT TO THE STATE THAT THEIR STUDENTS ARE DOING HOMESCHOOL, THEY JUST REPORT THAT THEY'VE LEFT PUBLIC SCHOOL.
BUT WE CAN MAKE SOME GUESSES BASED ON THE NUMBER OF STUDENTS THAT ARE ENROLLED IN VIRTUAL SCHOOLS ACROSS THE STATE.
CHARTERS REALLY ARE WHERE THAT INCREASES.
[00:15:04]
IT'S GONE. I DON'T WANT TO PAINT AN ALARMING PICTURE.IT'S ABOUT 500 MORE STUDENTS THAN IT WAS FIVE YEARS AGO.
IN THE GRAND SCHEME OF 65,000 STUDENTS, IT'S SIGNIFICANT, BUT IT'S NOT LIKE THOUSANDS AND THOUSANDS OF STUDENTS.
DO YOU REMEMBER THE TOTAL NUMBER FOR CHARTER, PRIVATE, HOMESCHOOL? WAS LIKE 2,500 KIDS? I LOOKED AT A LOT OF NUMBERS TODAY.
[LAUGHTER] I'LL LET HIM LOOK THAT UP AND THEN WE'LL GET BACK TO YOU.
I APPARENTLY CAN'T WRITE IN CORRECT SENTENCES.
I'LL FIX THAT. ESTABLISHED HOMES ARE NOT REGENERATING.
YOU HAVE NEIGHBORHOODS WHERE THEY HAD KIDS IN SCHOOL, THOSE KIDS HAVE GRADUATED, AND THEY'VE DECIDED TO STAY PUT INSTEAD OF SELLING AND MOVING AND DOWNSIZING AND LETTING A FAMILY WITH YOUNGER STUDENTS MOVE IN.
THAT'S JUST NOT HAPPENING, MOST LIKELY BECAUSE OF THE ECONOMY AND MORTGAGE PRICES AND THAT THING.
THAT MAY TURN BACK AROUND, BUT REGENERATION DOES NOT YIELD AS MUCH STUDENTS AS JUST PURE GROWTH DOES.
AS WE GET CLOSER TO BUILD OUT AND WE'RE BUILDING FEWER NEW HOMES WITHIN FRISCO ISD'S BOUNDARIES, THAT JUST REGENERATION WILL HELP KEEP ENROLLMENT STEADY, BUT IT WON'T PICK US BACK UP TO GO FROM NO GROWTH TO GROWTH AGAIN.
[LAUGHTER] ANY OTHER QUESTIONS ABOUT ENROLLMENT?
>> GOING THROUGH THE BUDGET ADOPTION PROCESS AND TIMELINE.
WE'VE ALL HAD INDIVIDUAL MEETINGS ABOUT THIS INFORMATION.
THE 89TH LEGISLATIVE SESSION HAS BEGUN.
WE ARE CURRENTLY GOING THROUGH CAMPUS AND DEPARTMENT BUDGET REVIEWS.
WE HAVE COMPLETED PRELIMINARY PERSONNEL RECOMMENDATIONS AND I'M GOING TO SHOW YOU THOSE HERE IN A FEW MINUTES.
WE WILL SPEND MARCH DOING DEPARTMENTAL BUDGETS AND CAMPUS BUDGETS.
THEN AT THE END OF MARCH, WE'LL COMPILE ALL OF THOSE.
IN OUR APRIL BUDGET WORKSHOP, WE'LL GIVE YOU A LOOK AT ANY CHANGES THAT ARE COMING OUT OF THAT, AS WELL AS FINANCIAL BENCHMARKING, IF WE HAVE IT.
TEA HAS CHANGED THEIR SOFTWARE ACTUALLY THAT THEY'RE USING FOR DATA COLLECTION.
I HAVE A FEELING THAT THAT WILL IMPACT OUR ABILITY TO DO BENCHMARKING BECAUSE WE PULL FINANCIAL REPORTS FROM TEA SYSTEM WHEN WE DO THAT.
ANYWAY, WE'RE KEEPING AN EYE ON THAT, BUT WE MAY NOT BE ABLE TO HAVE THAT AT THE TIME THAT WE NORMALLY DO.
WE WILL START OUR SALARY REVIEW AND DO THAT BENCHMARKING ALSO IN APRIL.
THEN, OF COURSE, THE GENERAL FUND BUDGET IS WHAT WE SPEND MOST OF OUR TIME TALKING ABOUT, BUT YOU GUYS ALSO ADOPT THE BUDGETS FOR THE CHILD NUTRITION AND DEBT SERVICE FUND, SO WE'LL TALK ABOUT THOSE IN APRIL AS WELL.
WE'LL GET PRELIMINARY CERTIFIED TAXABLE VALUES ON APRIL 30TH.
THEN IN MAY, WE'LL HAVE OUR FINAL BUDGET RECOMMENDATIONS, INCLUDING OUR COMPENSATION PLAN.
THE 89TH LEGISLATIVE SESSION WILL END.
WE'LL MAKE ANY CHANGES TO THE BUDGET THAT WE NEED TO AND CAN BEFORE YOU HAVE TO ADOPT IT.
IF THINGS RUN A LITTLE BIT LATE, WHAT WE WOULD DO IS ADOPT THE BUDGET AND THEN COME BACK AND AMEND IT ONCE WE HAVE FINAL INFORMATION FROM THE STATE.
THEN MID JUNE, WE WOULD HOLD YOUR PUBLIC HEARING ON THE BUDGET AND VOTE ON IT THEN. YEAH.
>> QUICK QUESTION, AND THIS MAY BE ON OUR CALENDARS, BUT I JUST DON'T HAVE THAT INFORMATION HANDY.
DO WE HAVE ANY MORE BUDGET WORKSHOPS BEFORE NOW AND JUNE? I BELIEVE THAT PROBABLY WILL BE, BUT I DON'T KNOW HOW MANY AND WHEN.
[LAUGHTER] [OVERLAPPING] SOUNDS GREAT.
>> I THINK I PUT ONE A MONTH AS A PLACEHOLDER ON THE CALENDAR FOR YOU GUYS BEFORE THE FINAL ONE.
BUT YES, THE GOAL IS ONE A MONTH AND WE CAN SCHEDULE MORE IF NECESSARY, ALTHOUGH I'M NOT SURE IT WILL BE NECESSARY.
YOU GUYS ARE ALL REAL FAMILIAR WITH THIS, SO I'M NOT GOING TO READ IT TO YOU.
JUST A REMINDER THAT YOUR ROLE AS A BOARD IN ALL OF THIS IS TO SET THE DISTRICT VISION AND GOALS, REVIEW AND PROVIDE FEEDBACK ON RECOMMENDATIONS FROM THE INSTRUCTIONAL SUPPORT TEAM, AND THEN APPROVE THE BUDGET AND COMPENSATION PLAN AFTER HOLDING A PUBLIC HEARING.
[00:20:03]
WE ALLOCATE OUR NON-PERSONNEL BUDGET OUT TO ALL OF OUR CAMPUSES AND THEN OUR DISTRICT DEPARTMENTS.WE HAVE PROBABLY 200 BUDGET OWNERS IN THE DISTRICT.
WE ALLOCATE ALL OF THAT BACK OUT, AND THEN WE BRING IT ALL BACK TOGETHER, AND THE FINANCE DEPARTMENT WILL COMPILE ALL OF THAT INFORMATION.
WE USE PRIORITIES-BASED BUDGETING HERE IN FRISCO ISD.
WE'VE USED IT FOR A NUMBER OF YEARS SINCE 2017.
THE GOAL OF PRIORITIES-BASED BUDGETING IS, TO EVERY YEAR, START WITH A CLEAN SLATE AND LOOK AT WHAT HAVE I AS A DEPARTMENT BUDGET OWNER BEEN SPENDING.
WHAT'S THE PURPOSE OF THAT? DO I NEED TO CONTINUE TO DO IT? DO I NEED TO INCREASE IT? CAN I DECREASE IT? IF I CAN DECREASE IT, THE GOAL IS TO GIVE THAT MONEY BACK TO THE DISTRICT AND WE CAN REALLOCATE IT TO OTHER DEPARTMENTS THAT MAY HAVE INCREASED NEEDS, EITHER BECAUSE OF INFLATION OR BECAUSE OF SOME OTHER PROJECT OR PROGRAM THAT THEY NEED TO PAY.
A LITTLE BIT OF HISTORY THAT HAS COME FROM PRIORITIES-BASED BUDGETING OVER THE PAST FEW YEARS THAT WE'VE BEEN IN A DEFICIT BUDGET SITUATION.
SINCE 2022, WE'VE EVALUATED EVERY OPEN POSITION IN CENTRAL OFFICE FOR BOTH NEED AND EFFICIENCY.
IN THE LAST THREE YEARS, WE'VE SAVED JUST OVER A MILLION DOLLARS NET IN CENTRAL OFFICE POSITION, SO THAT NET IS SAVINGS PLUS WHAT WE'VE NEEDED TO ADD WHEN WE'VE NEEDED TO GROW IN A DEPARTMENT.
WE'VE SAVED JUST OVER A MILLION DOLLARS.
THERE ARE CURRENTLY 31 VACANT IN CENTRAL OFFICE POSITIONS ON HOLD.
WE WILL BE MAKING A DECISION ON WHETHER TO REFILL THOSE OR GIVE THOSE POSITIONS BACK ESSENTIALLY TO THE BUDGET AND CALL THEM SAVINGS BY THE END OF THIS BUDGET CYCLE.
OUR GOAL WHENEVER A POSITION VACATES IN CENTRAL OFFICE IS TO TRY AND KEEP IT OPEN FOR ABOUT THREE MONTHS TO SEE IF WE CAN FIND A DIFFERENT WAY OF GETTING THAT WORK DONE BEFORE WE DECIDE TO REFILL IT.
LAST YEAR, WE WERE ABLE TO STANDARDIZE CLASS LOADS WITHOUT RAISING CLASS SIZES, WHICH GENERATED ABOUT EIGHT MILLION DOLLARS IN STAFFING EFFICIENCIES.
WE ALSO REALLOCATED ABOUT $1.7 MILLION BETWEEN DEPARTMENT BUDGETS TO HELP WITH INFLATIONARY INCREASES.
THAT'S WHEN I TALK ABOUT EVERY DEPARTMENT BUDGET OWNER LOOKS AT WHAT THEY'VE BEEN SPENDING AND TRIES TO FIGURE OUT IF THEY CAN DO IT A DIFFERENT WAY OR SPEND MORE EFFICIENTLY AND GIVES THE MONEY BACK TO OTHER DEPARTMENTS THAT MAY NEED IT.
THAT'S REALLOCATION THROUGH PRIORITIES-BASED BUDGETING.
THEN JUST AS A REMINDER FOR THE LAST TWO YEARS, WE HAVE HAD WEAVER, OUR INDEPENDENT AUDIT FIRM CONDUCT EFFICIENCY AUDITS, AND THEY FOUND THE SAME THING BOTH TIMES, WHICH IS ESSENTIALLY THAT COMPARED TO PEERS ACROSS THE STATE THAT WE ARE SPENDING VERY EFFICIENTLY.
I'VE TALKED A LITTLE BIT ABOUT WHAT MY DEPARTMENT DOES AND THE FACT THAT WE HAVE SO MANY BUDGET OWNERS.
AGAIN, I WON'T READ THIS TO YOU, BUT IT'LL BE OUT THERE FOR YOU TO REVIEW IF YOU NEED TO.
BUT I WANT TO MAKE SURE THAT THERE'S A CLEAR UNDERSTANDING THAT MY DEPARTMENT DOES NOT GO LINE BY LINE THROUGH DEPARTMENT'S BUDGETS, UNLESS WE'RE ASKED FOR HELP FROM THE BUDGET OWNER.
SOMETIMES IF YOU SAY, WELL, I WANT TO KNOW WHAT WE'RE SPENDING ON XYZ, IT'S HARD FOR ME TO GET YOU AN ANSWER, AND THAT'S WHY WE HAVE THOUSANDS AND THOUSANDS OF LINES OF BUDGET, AND THOSE DEPARTMENT BUDGET OWNERS ARE THE ONES THAT KNOW THEIR BUDGETS IN AND OUT.
IT IS A MISUNDERSTANDING SOMETIMES THAT THE FINANCE DEPARTMENT REALLY GETS AT A DEEP LEVEL WITH THE BUDGET.
WE JUST DON'T BECAUSE WE'RE TOO BIG OF AN ORGANIZATION.
IF YOU HAVE DETAILED QUESTIONS AS WE GO THROUGH THIS PROCESS ABOUT WHAT ARE WE SPENDING ON THIS? WHAT ARE WE SPENDING ON THAT? JUST LET ME KNOW WHAT THEY ARE AND GIVE US A LITTLE BIT OF TIME AND WE'LL TRY TO COMPILE IT FOR YOU, BUT IT'S NOT JUST EASY TO PULL IT OUT OF THE SYSTEM.
JUMPING TO WHERE WE'RE AT CURRENTLY.
THIS IS FOR THE '24-'25 BUDGET, THE SCHOOL YEAR THAT WE'RE CURRENTLY IN.
JUST A REMINDER OF WHERE WE STARTED THIS YEAR.
WE STARTED WITH A $30.8 MILLION BUDGET DEFICIT.
SOME OF THE THINGS THAT WENT INTO THIS YEAR'S BUDGET, 3.6 MILLION IN NEW POSITIONS FOR SPECIAL PROGRAMS, 2.7 MILLION IN INFLATIONARY INCREASES.
WE CUT ALMOST $17 MILLION OUT OF THE BUDGET AND IDENTIFIED COST SAVINGS.
THEN WE TURNED AROUND AND PROVIDED THAT $17 MILLION TO STAFF IN THE FORM OF A 3% RAISE AND AN INCREASE IN TEACHER STARTING PAY.
[00:25:07]
THE GOAL WAS TO BALANCE THIS YEAR'S BUDGET WITH A TAX RATE INCREASE AND THEN USE OF TIRZ FOR GENERAL FUND, FACILITY MAINTENANCE COSTS, AS WELL AS TRY TO GET OUR ATTENDANCE UP.WE HELD THE VADER IN NOVEMBER AND THE COMMUNITY TURNED THAT ONE DOWN.
WE DID GO THROUGH THE PROCESS WITH THE CITY TO REDO OUR TIRZ AGREEMENT TO ALLOW US TO USE SOME OF THOSE FUNDS FOR GENERAL OPERATING COSTS OF OUR FACILITIES.
THE GOOD NEWS THERE IS THAT WE WERE PLANNING TO BE ABLE TO USE ABOUT $15 MILLION OF THOSE FUNDS FOR OPERATIONS.
WHEN WE GOT IT ALL SET AND DONE, WE'RE ABLE TO USE JUST OVER $30 MILLION OF THOSE FUNDS FOR OPERATIONS. THAT'S GREAT NEWS.
THAT'S REALLY HELPING US BALANCE OUR BUDGET THIS YEAR.
THEN THE ATTENDANCE CAMPAIGN, LIKE I MENTIONED A LITTLE WHILE AGO, WHERE WE'VE IMPROVED IN ATTENDANCE OVER THE LAST YEAR, BUT WE'RE NOT QUITE BACK TO PRE-COVID LEVELS.
A 1% INCREASE IN ATTENDANCE WOULD GENERATE ABOUT $3.5 MILLION FOR US.
OH, GOSH, I HAVE TO CLICK THROUGH ALL THESE.
HERE ARE HISTORICAL ATTENDANCE RATES.
I GAVE YOU 2019, BECAUSE THAT'S PRE-COVID.
YOU CAN SEE SINCE 2022, WE'VE MADE SOME IMPROVEMENT.
BUT IF WE WERE TO GET THAT 1% BACK TO GET US BACK TO PRE-COVID LEVELS, THAT WOULD GIVE US ABOUT A $3.5 MILLION INCREASE.
I HAVE NOT FACTORED AN INCREASE IN ATTENDANCE INTO OUR BUDGET PROJECTIONS AT THIS POINT.
OUR STUDENT SERVICES DEPARTMENT AND OUR PRINCIPALS HAVE BEEN WORKING REALLY HARD ON IMPROVING ATTENDANCE.
BUT UNTIL WE SEE IT ACTUALLY HAPPENING, I DON'T WANT TO FACTOR IT INTO OUR BUDGET BECAUSE I WANT TO MAKE SURE THAT WE'RE REMAINING REALISTIC ABOUT WHERE WE'RE AT.
I WANT TO MAKE SURE BECAUSE I KNOW WE HAVE SOME NEWER BOARD MEMBERS.
CAN YOU JUST GIVE US A BRIEF EXPLANATION WHEN YOU'RE REFERRING TO ATTENDANCE FUNDING?
>> YEAH. OUR 85% OF OUR OPERATING BUDGET REVENUE COMES THROUGH THE SCHOOL FINANCE FORMULA, AND THAT FORMULA IS BASED ON AN ENTITLEMENT PER STUDENT IN WEIGHTED AVERAGE DAILY ATTENDANCE, WHICH MEANS THAT THE STATE'S FORMULA LOOKS AT THE STUDENTS WE HAVE ENROLLED, HOW OFTEN THEY COME TO SCHOOL, AND THEN WHAT TYPES OF SPECIAL PROGRAMS THEY'RE SERVED BY.
THAT CREATES WEIGHTED AVERAGE DAILY ATTENDANCE.
WE GET A CERTAIN AMOUNT OF MONEY FOR EACH ONE OF THOSE STUDENTS.
WE HAVE TO RAISE AS MUCH OF THAT AS WE CAN WITH LOCAL PROPERTY TAXES AND THEN THE STATE FILLS IN THE GAP BETWEEN OUR ENTITLEMENT AND WHAT WE RAISE LOCALLY.
SINCE ATTENDANCE IS A KEY PIECE OF THAT WEIGHTED AVERAGE DAILY ATTENDANCE, IF OUR ATTENDANCE RATES FALL, SO DOES OUR REVENUE, WHICH IS UNFORTUNATE BECAUSE WE BUDGET AS IF EVERY KID IS GOING TO COME TO SCHOOL EVERY DAY.
WE CAN'T PAY A TEACHER 95% OF THEIR PAY BECAUSE 95% OF THEIR STUDENTS COME TO SCHOOL EVERY DAY.
THAT'S JUST THE WAY THAT THE SYSTEM IS SET UP, BUT IT DOES IMPACT US FAIRLY SIGNIFICANTLY WHEN ATTENDANCE CHANGES EVEN BY JUST A LITTLE BIT.
>> QUICK QUESTION. WELL, FIRST, I JUST WANT TO SAY THAT TIRZ'S PROJECTION IS [OVERLAPPING] THAT'S MORE THAN DOUBLE WHAT YOU PROJECTED, SO THAT'S FANTASTIC.
I'M REALLY THRILLED TO SEE THAT.
I KNOW THAT'S SOMETHING WE'VE BEEN TALKING ABOUT FOR TWO YEARS NOW MAYBE.
IT IN A WHILE, WELL, AT LEAST.
CAN YOU JUST EXPLAIN, IF THE TIRZ'S REVENUE IS GOING TO BE USED FOR M&O, THEN HOW IS DEBT SERVICE AND HOW ARE THE CAPITAL PROJECTS FUNDED? BASED ON YOUR PROJECTION, WE MAY NOT BE USING THOSE FUNDS FOR THAT BECAUSE WE'LL BE USING IT FOR M&O, THEN HOW ARE THOSE FUNDED?
>> GREAT QUESTION. FIRST OF ALL, SHOUT OUT TO ESTHER FOR HELPING US COME UP WITH WHAT WE COULD USE THE TIRZ'S MONEY FOR AND HELPING US GET THAT NUMBER UP.
BUT WE HAVE HISTORICALLY USED TIRZ'S FUNDS TO HELP MANAGE OUR DEBT TAX RATE.
IT IS ALMOST UNHEARD OF FOR A DISTRICT OUR SIZE, BUILDING AS MANY SCHOOLS AS WE HAVE BUILT, TO HAVE A 27-CENT DEBT TAX RATE.
WE'VE BEEN ABLE TO DO THAT BECAUSE WE'VE BEEN USING THAT MONEY THAT WE GENERATE FROM THE TIRZ ZONE TO PAY DOWN DEBT BEFORE WE PASS THAT ALONG TO OUR HOMEOWNERS.
[00:30:06]
RIGHT NOW, SINCE WE ARE AT THE TAIL END OF THE 2018 BOND PROGRAM, AND WE DID NOT PASS THE 2024 BOND PROGRAM, WE ARE NOT ISSUING MORE DEBT, WHICH MEANS THAT WE'RE ABLE TO MAINTAIN OUR CURRENT DEBT PAYMENTS AT THE 27 CENTS.IN THE FUTURE, IF AND WHEN WE HAVE ANOTHER BOND PROGRAM THAT PASSES, WE WON'T BE ABLE TO COUNT ON THE TIRZ TO HELP MANAGE THAT DEBT TAX RATE.
WE WILL STILL HAVE THE BENEFIT OF PROPERTY VALUE GROWTH ON THE DEBT SIDE.
WHENEVER PROPERTY VALUES RISE, THAT HELPS US MAKE MORE DEBT PAYMENTS WITH THE SAME TAX RATE.
WE'LL STILL HAVE THE BENEFIT OF THAT FOR AS LONG AS PROPERTY VALUES ARE INCREASING, BUT WE WON'T HAVE THAT.
IT'S WORKED ITS WAY UP TO ABOUT 35-$40 MILLION RIGHT NOW THAT WE GET IN TIRZ REVENUE.
WE WON'T HAVE THAT AVAILABLE TO US TO HELP MANAGE THE DEBT TAX RATE GOING FORWARD AS LONG AS WE'RE USING IT FOR OPERATIONS.
ON THE CAPITAL PROJECT SIDE, SO HISTORICALLY, WE COULD USE THE MONEY TO EITHER HELP PAY DEBT OR TO JUST DIRECTLY BUILD BUILDINGS OR RENOVATE FACILITIES.
WE HAVE ALMOST EVERY YEAR SINCE I'VE BEEN HERE CHOSEN TO USE IT TO PAY DEBT.
WE CAN STILL USE MONEY TO HELP WITH CAPITAL PROJECTS, AS LONG AS THERE ARE CAPITAL PROJECTS RELATED TO SCHOOLS WITHIN THE TIRZ ZONE, WHICH ALMOST EVERY SCHOOL WE HAVE IS WITHIN THE TIRZ ZONE.
ANY ADDITIONAL MONEY THAT WE GET FROM THE TIRZ GOING FORWARD THIS YEAR AND GOING FORWARD THAT DOESN'T GO TO THOSE M&O COSTS, WE WILL PUT ASIDE FOR CAPITAL PROJECTS FOR THAT REVISED CAPITAL PLAN THAT WE TALKED ABOUT IN OUR LAST WORKSHOP TO HELP GET US THROUGH UNTIL WE CAN HAVE ANOTHER BOND.
>> ANOTHER QUESTION, NOT ABOUT THAT.
ENROLLMENT IS DECLINING, YOU SAID BY ABOUT 1,300 STUDENTS.
>> RIGHT. I THINK IT'S ANOTHER 1,100 NEXT YEAR IS WHAT'S PROJECTED.
>> OKAY. THAT THEN WOULD LEAD TO A DECREASE IN PERSONNEL.
THE MOST OBVIOUS ONE THAT COMES TO MIND IS TEACHERS.
YOU DON'T NEED AS MANY TEACHERS IF YOU HAVE 1,100 LESS STUDENTS.
I DON'T KNOW IF THAT IMPACTS OTHER POSITIONS AS WELL.
CAN YOU JUST TALK ABOUT A LITTLE BIT WHAT THAT LOOKS LIKE IN TERMS OF DOLLARS SPENT? THANK YOU.
>> I ACTUALLY HAVE THAT ON A SLIDE HERE IN A MINUTE, IF WE CAN HOLD ON FOR THAT.
>> BUT YES, THAT IS ABSOLUTELY SOMETHING THAT WE HAVE TO LOOK AT.
>> I HAVE A QUESTION. FIRST OF ALL, I LOVE THIS MIC BETTER THAN THE LAST [LAUGHTER] MIC.
I DON'T KNOW IF THIS FITS HERE.
BUT SINCE WE'RE TALKING ABOUT ALL THINGS, MONEY COMING AND GOING, CAN YOU TELL ME THE AMOUNT THAT WE SEND BACK TO THE STATE IN ROBIN HOOD?
IT'S A FUNCTION OF YOUR WEIGHTED AVERAGE DAILY ATTENDANCE TO YOUR PROPERTY WEALTH AS A DISTRICT.
AS OUR ENROLLMENT DECLINES, AND OUR PROPERTY VALUES GO UP, THAT RATIO GETS LARGER, WHICH MEANS OUR RECAPTURE GETS LARGER.
NOW, IT'S NOT GROWING BY, WHAT I WOULD SAY IS A SIGNIFICANT AMOUNT EVERY YEAR.
I THINK IT GOES FROM MAYBE 13 MILLION TO 15 MILLION BETWEEN THIS YEAR AND NEXT YEAR.
IT'S NOT GROWING RAPIDLY, BUT IT DOES GROW AS OUR ENROLLMENT DECREASES.
>> OKAY. I PROMISE THIS IS MY LAST QUESTION BECAUSE I KNOW THIS IS NOT ON YOUR SLIDE, BUT IT'S IMPORTANT.
IS THERE ANYTHING THAT WE CAN DO AS A DISTRICT TO DECREASE THE AMOUNT THAT WE'RE HAVING TO SEND BACK?
>> RECAPTURE IS JUST PART OF THE STATE'S FUNDING FORMULA.
LIKE I TALKED ABOUT A MINUTE AGO, WE GET ESSENTIALLY AN ENTITLEMENT PER STUDENT, AND THAT ENTITLEMENT IS SET IN STATUTE AND IT'S SUBJECT TO CHANGE BY THE LEGISLATURE ONLY.
IF WE GENERATE MORE THAN OUR ENTITLEMENT, WE HAVE TO SEND MONEY BACK.
IT GETS A LITTLE BIT COMPLEX IN THAT THERE'S DIFFERENT TIERS OF THE FUNDING FORMULA.
THERE'S TIER 1, AND THEN THERE'S TIER 2, AND WITHIN TIER 2, YOU HAVE TIER 1 AND TIER 2.
IT'S A LITTLE BIT COMPLEX, BUT WITHIN EACH TIER, THE STATE FORMULA LOOKS AT YOUR ENTITLEMENT AND HOW MUCH YOU CAN GENERATE TO COVER IT, AND THEN IF YOU GENERATE EXCESS, YOU SEND IT BACK.
WE CANNOT CHANGE OUR TAX RATE TO DECREASE RECAPTURE.
[00:35:03]
WELL, THAT'S THE THING THAT A LOT OF PEOPLE THINK WE COULD DO, IS JUST LOWER OUR TAX RATE, AND WE SEND LESS BACK.THAT'S NOT HOW IT WORKS, WE HAVE TO SET THE TAX RATE THAT THE STATE TELLS US WE HAVE TO SET IN ORDER TO GENERATE FULL FUNDING, AND WE SEND RECAPTURE BACK BECAUSE OUR PROPERTY VALUES ARE INCREASING.
SINCE WE DON'T APPRAISE PROPERTY, THERE'S NOTHING WE CAN DO.
>> THANK YOU. I WANT TO GO BACK TO THE CONCEPT OR PREMISE THAT LOSING 1,100 STUDENTS WILL FORCE A REDUCTION STAFFING.
UNLESS I'M INCORRECT, WE DON'T START WITH 100% STAFFING, DO WE?
FOR TEACHERS, WE HAVE A STAFFING FORMULA FOR EVERY CLASSROOM.
>> BUT THEN EACH CLASS DON'T HAVE THE EXACT 25 KIDS OR 30 KIDS.
WITH THAT IN MIND, I'M THINKING THAT, YEAH, WE MIGHT LOSE SOME KIDS, BUT IT'LL BALANCE OUT.
I DIDN'T WANT TO ASSUME THAT REVENUE EQUATES TO AUTOMATIC 20 TEACHERS.
WHEN YOU ACCUMULATE ALL OF IT, THERE IS SOME DECREASE IN THE NEED FOR TEACHER ALLOCATIONS WHEN ENROLLMENT DROPS BY A CERTAIN AMOUNT, BUT IT'S NOT EQUAL. YOU'LL SEE HERE IN A MINUTE.
IF WE LOSE $10 MILLION BECAUSE ENROLLMENT DECLINES, WE'RE NOT GOING TO BE ABLE TO CUT $10 MILLION WORTH OF TEACHERS.
WE WILL BE ABLE TO REDUCE TEACHER FTES REQUIRED TO SERVE THOSE STUDENTS, BUT NOT NEARLY BY $10 MILLION.
HERE'S WHERE WE'RE AT BETWEEN WHEN YOU GUYS ADOPTED THE BUDGET IN JUNE AND WHERE WE ARE TODAY.
I WENT THROUGH THE COLUMN ON THE LEFT.
WE HAD THE $30.8 MILLION ADOPTED DEFICIT, WE PLANNED FOR THE VATRE, WE PLANNED $15 MILLION FROM TIRZ AND THAT WOULD HAVE GOTTEN US DOWN TO SOMETHING MORE MANAGEABLE.
HERE'S WHERE WE'RE AT RIGHT NOW.
WE INCREASED OUR TIRZ REVENUE TO JUST OVER 31 MILLION.
WE DID HAVE AN $11 MILLION LOSS OF REVENUE FOR OUR DECLINE IN ENROLLMENT THAT WE WEREN'T PLANNING FOR.
WE BUDGETED AS IF ENROLLMENT STAYED STEADY.
WE ALSO RECEIVED THIS YEAR AN $8 MILLION SETTLEMENT FROM THE STATE FROM A PROPERTY VALUE AUDIT.
I'VE GOT ASTERIX NEXT TO THIS ONE AND THEN THE ONE AT THE BOTTOM.
THOSE ARE ONE-TIME REVENUES AND EXPENDITURES.
IT'S A GREAT WINDFALL OF MONEY THAT WE WERE ABLE TO GET, THANKS TO THE PROPERTY VALUE AUDITS THAT WE GO THROUGH EVERY YEAR, BUT IT'S NOT REVENUE THAT WE COUNT ON.
IT'S JUST A SETTLE-UP FOR PREVIOUS YEAR'S STATE FUNDING FORMULAS FOR THE PROPERTY VALUES THAT THE STATE USED WHEN THEY CALCULATED WHAT THEY OWED US AND PAID US.
THAT'S GREAT AND THAT'S HELPING US OUT THIS YEAR.
WE ALSO WE'RE GENERATING ABOUT $5 MILLION A YEAR MORE IN INVESTMENT INCOME THAN WE WERE BUDGETING.
WE RIGHT-SIZED TO THAT BUDGET.
THEN YOU GUYS HAVE ADOPTED SOME BUDGET AMENDMENTS OVER THE COURSE OF THIS YEAR SO FAR.
SOME OF THOSE ARE RECURRING, AND THEN SOME OF THOSE WERE ONE TIME.
WITH ALL OF THESE CHANGES, WE'RE DOWN TO A DEFICIT CURRENTLY THAT'S MORE MANAGEABLE.
THIS DOES NOT FACTOR IN ANY SAVINGS ON THE BUDGET THAT WE'LL BE ABLE TO GENERATE BY THE END OF THE YEAR.
I CAN SAFELY SAY THAT WE WILL LIKELY END THIS YEAR WITH A SURPLUS, MOSTLY THANKS TO THAT PROPERTY VALUE AUDIT SETTLEMENT THAT WE GOT.
WE CAN TALK MORE ABOUT THAT SURPLUS LATER ON IN A LATER BUDGET WORKSHOP AS WE FIRM UP WHAT THAT NUMBER WILL LOOK LIKE.
LIKE I SAID, REMINDER $15 MILLION DEFICIT OR LESS SHOULD CORRECT ITSELF BY THE END OF THE YEAR BECAUSE HISTORICALLY, WHEN WE LOOK AT WHAT WE SAVE ON BUDGETS THROUGH EVERY CAMPUS AND EVERY DEPARTMENT AND SAVINGS FROM TURNOVER AND THAT THING, IT TYPICALLY ADDS UP TO SOMEWHERE AROUND $15 MILLION.
WE SHOULD BE IN A GOOD SPOT BY THE END OF THIS YEAR NOT HAVING TO USE OUR RAINY DAY FUNDS.
>> WHOEVER HAD ANYTHING TO DO WITH ALL OF THIS.
I KNOW THAT WE'RE IN A VERY PROFESSIONAL ENVIRONMENT RIGHT NOW.
BUT I THINK THAT I CAN SPEAK FOR THE OTHER TRUSTEES THAT WE'RE BEAMING ON THE INSIDE, SOME OF US MORE THAN OTHERS.
I KNOW KEITH IS A HARD SHELL TO CRACK, BUT HE'S EVEN SMILING.
[00:40:03]
I DON'T KNOW IF THIS IS LIVE OR IF WE'RE RECORDING.WHEN WE WENT INTO THIS YEAR WITH A DEFICIT BUDGET, MANY OF US WERE VERY UNSURE OF WHAT THE OUTCOME WOULD BE.
WE DID KNOW AT THE TOP OF THINGS WE NEEDED TO PAY TEACHERS.
THEN WE FOUND OUT EVEN THOUGH WE PAID TEACHERS, THE INSURANCE ATE THAT UP.
THEN WITH THE VATRE AND THE BONDS NOT PASSING, I HOPE I CAN SPEAK FOR MY COLLEAGUES IN THIS REGARD THAT WE REALLY DO APPRECIATE YOU ALL NOT GIVING UP AND JUST MAKING SURE THAT WE BALANCED THIS YEAR'S BUDGET. YEAH.
>> I HAVE A QUESTION. KUDOS TO YOU GUYS FOR THE GOOD WORK YOU'VE DONE.
I MEAN, THIS DOES PUT A SMILE ON EVERYONE'S FACE.
>> NOW, LET ME ASK YOU A QUESTION.
DID WE HAVE TO MAKE ALL THE CUTS WE MADE? EVEN THOUGH A DEFICIT OF 15 MILLION WILL SELF-CORRECT, IT STILL MEANS WE HAD TO?
>> YES. KEEP IN MIND, SOME OF THAT CORRECTION IS FROM ONE-TIME REVENUE SOURCES, $8 MILLION OF THAT CORRECTION IS FROM A ONE-TIME REVENUE SOURCE THAT WE CAN'T COUNT ON GOING FORWARD.
ALSO, KEEP IN MIND, AND I'LL SHOW YOU A SLIDE HERE IN A SECOND, WE'RE EXPECTING ADDITIONAL ENROLLMENT DECLINE NEXT YEAR, WHICH MEANS AN ADDITIONAL LOSS OF REVENUE.
>> NO. THIS IS JUST TALKING ABOUT THE CURRENT YEAR THAT WE'RE IN.
WE WERE HOPEFUL TO NOT HAVE TO USE RAINY DAY FUNDS FOR THIS CURRENT YEAR, AND THEN WE NEED TO BALANCE THE BUDGET FOR NEXT YEAR.
WHILE SOME OF THAT CARRIES OVER, WE'RE REALLY LOOKING AT THEM INDEPENDENTLY.
I FEEL REALLY GOOD ABOUT THE FACT THAT FOR THIS SCHOOL YEAR, WE WON'T HAVE TO DEEP INTO RAINY DAY FUNDS.
THEN NEXT YEAR, I'LL SHOW YOU WE ARE ALMOST AT A FULLY BALANCED BUDGET, AND WE WILL GET THERE BEFORE THE END OF THIS CYCLE.
>> ONE MORE THING. AT THE TOP OF THE YEAR, WHEN WE HAD TO SHARE WITH ALL OF OUR COMMUNITY THAT WE WERE ENTERING A DEFICIT BUDGET.
HOW ARE WE GOING TO COMMUNICATE THAT Y'ALL DID ALL OF THIS TO ENSURE THAT THE BUDGET WAS BALANCED BY THE END OF THE YEAR?
>> WELL, WE HAVE A COMMUNICATION PLAN FOR STAFF RIGHT NOW JUST TO WALK THEM THROUGH AND KEEP THEM IN THE LOOP ON WHAT'S GOING ON.
WE'LL START COMMUNICATING THAT AS EARLY AS TOMORROW AFTER WE'VE HAD THIS WORKSHOP.
I'M SURE COMMUNICATIONS WILL PUT OUT THE SAME THINGS THAT THEY ALWAYS DO ABOUT WHERE WE'RE OUT IN OUR BUDGET PROCESS AND THAT KIND OF THING.
FIRST OF ALL, CONGRATULATIONS.
I MEAN, VERY GREAT WORK, ESPECIALLY FROM THE TIRZ AND ALSO PROPERTY VALUE AUDIT STANDPOINT, I THINK THAT SAVED US.
>> A COUPLE OF QUESTIONS. THE FIRST ONE IS FROM 66.6 K. WE ARE PROJECTED TO MAYBE AROUND 64 K NEXT YEAR.
PLUS WE ARE ALSO OPENING UP FOR OTHER STUDENTS TO COME FROM NEIGHBORING.
WAS THE ESTIMATED PLUS FOR US?
>> I'LL GET THERE IN JUST A MINUTE
>> THEN THE NEXT QUESTION IS ABOUT THE RAINY DAY FUNDS.
>> ALL RIGHT. [LAUGHTER] I'LL STOP HERE.[LAUGHTER]
>> LET ME GO THROUGH THIS AND THEN IF YOU HAVE ADDITIONAL QUESTIONS ON THAT, LET ME KNOW.
OUR FUND BALANCE AT JUNE 30TH, 2024, WHEN WE CLOSED OUR LAST FISCAL YEAR WAS $241 MILLION.
WE HAVE $15 MILLION OF THAT SET ASIDE FOR SPECIFIC PURPOSES, AND THEN WE SET AN INFORMAL TARGET FOR CASH FLOW OF ABOUT 180 MILLION.
IF YOU'VE BEEN FOLLOWING ALONG CLOSELY FOR A NUMBER OF YEARS, THAT NUMBER USED TO BE 150 MILLION.
THE TIMING OF OUR PAYMENTS HAS CHANGED A LITTLE BIT FROM THE STATE, AND WE REVISE THAT CASH FLOW TARGET EVERY YEAR AND MAKE SURE THAT IT'S STILL GOOD.
THIS YEAR, I'VE UPPED THAT TARGET FOR CASH FLOW TO 180 JUST TO MAKE SURE THAT WE'RE COVERED BASED ON THE TIMING OF STATE AID PAYMENTS AND THAT THING, WHICH LEAVES US WITH ABOUT $46 MILLION AVAILABLE FOR A RAINY DAY.
THAT'S WHERE WE'RE AT IN TERMS OF RAINY DAY FUNDS.
LIKE I SAID, I DON'T ANTICIPATE THAT WE'LL NEED TO USE ANY OF THOSE THIS YEAR.
WE DID HAVE TO USE RAINY DAY FUNDS IN THE 23/24 SCHOOL YEAR.
WE USED ABOUT $13 MILLION OF RAINY DAY FUNDS, BUT I DON'T ANTICIPATE WE'LL HAVE TO DIP INTO THEM AGAIN.
>> I JUST WANTED TO CLARIFY MY EARLIER QUESTION AROUND THE TEACHER STAFFING BECAUSE EVEN IF WE DIDN'T NEED AS MANY TEACHERS THIS YEAR AS WE DO NEXT YEAR, WE'RE STILL HIRING.
I DON'T WANT ANYBODY TO THINK WE'RE TALKING ABOUT REDUCING NUMBER OF TEACHERS.
[00:45:03]
I WOULDN'T WANT THAT TO BE MISCONSTRUED BY OUR TEACHERS.WE'RE STILL HIRING, DR. LINTON, AND WE STILL NEED OUR TEACHERS.
WE ARE STILL ARE HERE TO STAY HERE.
I JUST WANT TO CLARIFY THAT. THANK YOU.
>> [LAUGHTER] I'M GLAD YOU DID. I'LL MENTION THIS IN A MINUTE, BUT I'LL GO AHEAD AND SAY IT RIGHT NOW TOO.
ANY POSITIONS THAT WE DO REDUCE DUE TO ENROLLMENT DECLINE WILL BE TAKEN CARE OF THROUGH NORMAL ATTRITION.
THAT'S JUST IN THE NORMAL COURSE OF PEOPLE DECIDING TO MOVE OR TO LEAVE EDUCATION FOR WHATEVER REASON, WE'LL BE ABLE TO TAKE CARE OF ALL THOSE REDUCTIONS WITH POSITIONS THAT WILL BE VACANT ANYWAY.
DID THAT ANSWER YOUR QUESTION ON THE RAINY DAY FUNDS? GREAT. THAT'S WHERE WE'RE ENDING THIS YEAR.
I'M GLAD EVERYBODY'S HAPPY ABOUT THAT. I'M HAPPY ABOUT THAT.
LOOKING AT NEXT YEAR, 25/26 PRELIMINARY BUDGET.
WE ALWAYS START WHEN WE LOOK AT THE BUDGET WITH THE REVENUE THAT WE HAVE AVAILABLE FOR APPROPRIATION.
I'VE GIVEN YOU A WALK FORWARD FROM WHERE WE'RE AT RIGHT NOW TO WHERE WE PROJECT THAT WE'LL GO.
ESSENTIALLY, THE ONLY CHANGE IS A $14 MILLION DECREASE IN REVENUE THROUGH OUR FUNDING FORMULA, MOST OF WHICH IS DUE TO ENROLLMENT DECLINE.
YOU CAN SEE WE'RE PROJECTING ABOUT $17 MILLION DECREASE FOR JUST GENERAL ENROLLMENT DECLINE.
WE'RE PROJECTING TO ADD ABOUT $3 MILLION BECAUSE OF ACCESS FRISCO ENROLLMENT.
IS THAT WHAT I USE? 350? 300? 330, THANK YOU.
330 STUDENTS THAT HAVE ACCEPTED THEIR OFFERS FOR PLACEMENT IN ACCESS FRISCO. THAT'S WHAT WE USED.
OUR FAST GROWTH ALLOTMENT IS GOING AWAY.
THAT'S A PIECE OF THE FUNDING FORMULA THAT WE WERE GETTING BECAUSE WE ARE A FAST-GROWTH DISTRICT.
WE ARE STILL CONSIDERED A FAST-GROWTH DISTRICT IN THE STATE'S FUNDING FORMULA, EVEN THOUGH OUR ENROLLMENT IS DECLINING BECAUSE THEY LOOK AT THE PREVIOUS FIVE YEARS OF ENROLLMENT GROWTH.
THEY GIVE US AN AMOUNT OF MONEY FOR EVERY STUDENT WE'VE GROWN OVER THE LAST FIVE YEARS.
WE ARE STILL GETTING SOME MONEY FROM THAT, BUT WE'RE PHASING IT OUT, AND WE PROJECT TO LOSE ABOUT $2 MILLION IN THAT ALLOTMENT NEXT YEAR.
WHEN WE LOOK AT PROPERTY VALUE GROWTH, PROPERTY VALUE GROWTH IN THE STATE'S FUNDING FORMULA IS OFFSET BY A REDUCTION IN STATE AID, BUT IT'S NOT QUITE DOLLAR FOR DOLLAR.
IT HAS TO DO WITH THE FLOOR THAT THE STATE SETS TAX RATES AT.
IT GETS A LITTLE COMPLICATED, BUT BASICALLY WE'RE EXPECTING IT TO GET $2,000,000 IN REVENUE IN OUR GENERAL FUND BECAUSE OF PROPERTY VALUE GROWTH.
THEN THE GOLDEN PENNY YIELD, THIS IS NOT NOT IN LAW YET.
BUT BOTH BILLS IN THE HOUSE AND SENATE HAVE THIS INCREASE IN GOLDEN PENNY YIELD IN THEM.
IT IS SET IN STATUTE THAT THEY ARE SUPPOSED TO INCREASE IT, BUT THEY JUST HAVE TO ADOPT IT IN THE STATE'S BUDGET IN ORDER TO MAKE IT HAPPEN.
I AM 99% CERTAIN THAT THAT WILL GO THROUGH.
I DON'T EVER INCLUDE ANTICIPATED CHANGES TO THE FUNDING FORMULA UNTIL THEY'RE ACTUALLY LAW.
BUT THIS IS ONE OF THOSE THAT WE FEEL CONFIDENT WE CAN GO AHEAD AND INCLUDE BECAUSE IT IS ALREADY IN STATUTE, THEY JUST HAVE TO APPROPRIATE IT IN THE BUDGET.
THAT GIVES US A NET CHANGE OF 14.
>> I JUST WANT TO MAKE A QUICK COMMENT ON THE TABLE ON THE RIGHT.
I DON'T KNOW IF ALL THOSE ARE SUPPOSED TO BE AGGREGATED OR NOT, BUT I'M GETTING A -14.
IT COULD BE REPRESENTING SOMETHING DIFFERENT. I'M NOT SURE.
>> NO, IT SHOULD ADD UP, BUT IT SHOULD BE 14.
I MUST HAVE LEFT SOMETHING OFF OF IT, BUT I'LL GO CHANGE THAT BEFORE WE PUBLISH IT.
>> EXACTLY. A SILLY QUESTION THERE.
BUT TO ME, THIS ACTUALLY PUTS SOME MEAT ON THE BONE FOR ACCESS FRISCO TO ME.
ENTERING A NEW PROGRAM THAT THIS DISTRICT HAS NEVER DONE BEFORE HELPS ME AS A TRUSTEE UNDERSTAND WHAT THE ECONOMIC IMPACT IS, SO THAT WHEN WE ALL EVALUATE IT, THOSE CONS, WHAT THE ECONOMIC ELEMENT OF THAT NEW PROGRAM IS.
I APPRECIATE YOU LINE ITEMING THAT INTO THIS BUDGET PROCESS.
>> THAT WAS A LOOK AT REVENUES.
WHEN WE LOOK AT EXPENDITURES, WE ALWAYS START WITH THE CURRENT YEAR'S BUDGET AND ROLL IT FORWARD.
OUR 24/25 ADOPTED BUDGET WAS 752.5 MILLION.
WHEN WE TAKE OUT THOSE ITEMS THAT WE CALL FLOW THROUGH,
[00:50:02]
WHICH IS MONEY COMING IN AND GOING RIGHT BACK OUT, THAT'S 95.8 MILLION OF THAT.YOU GUYS ALSO HAVE APPROVED SOME AMENDMENTS TO THE BUDGET SO FAR THIS YEAR THAT ARE RECURRING EXPENDITURES, INCREASES IN SROS, APPRAISAL FEES FOR OUR APPRAISAL DISTRICTS, AND THEN AN INCREASE IN THE COMMUNICATIONS AND ADVERTISING BUDGET.
HOPEFULLY, THE MATH ON THIS ONE IS RIGHT.
[LAUGHTER] WHEN YOU ADD ALL THAT UP, THAT GIVES US A BASELINE OR A STARTING POINT OF 657.6 MILLION, WHICH IS LESS THAN THE REVENUE THAT WE HAVE FOR APPROPRIATIONS.
NOW WE'RE WORKING TO MAKE CUTS IN ORDER TO GET THAT BALANCE.
I'M GOING TO GO THROUGH NOW THE COST SAVINGS THAT WE HAVE IDENTIFIED AND BUILT INTO THE BUDGET.
THE BULK OF THIS IS GOING TO BE IN STAFFING EFFICIENCIES AND RESTRUCTURES.
>> BEFORE I START TALKING ABOUT THESE, I WANT TO SAY THAT EVERYONE WHOSE JOB IS IMPACTED BY THESE RECOMMENDATIONS HAS ALREADY BEEN COMMUNICATED WITH AND THAT WE ARE NOT LAYING OFF EMPLOYEES.
THIS IS NOT A REDUCTION IN FORCE.
WE ARE RESTRUCTURING THE POSITIONS THAT WE CURRENTLY HAVE AVAILABLE AND HR, ALONG WITH OUR PRINCIPALS AND OUR CENTRAL DEPARTMENTS ARE MAKING SURE THAT ANYONE WHOSE JOB IS IMPACTED, WHOSE POSITION MIGHT BE GOING AWAY HAS AN OPPORTUNITY TO STAY WITH THE DISTRICT IN SOME OTHER CAPACITY.
I DO WANT TO MAKE THAT REALLY CLEAR.
THE FIRST TWO ITEMS ON THIS, REALLY.
THE FIRST ONE SPEAKS TO WHAT STEPHANIE WAS TALKING ABOUT EARLIER, WHICH IS REDUCING ELEMENTARY FTES THROUGH ATTRITION FOR ENROLLMENT DECLINE.
IF YOU REMEMBER WE'RE EXPECTING $17 MILLION IN ENROLLMENT DECLINE, WE CAN REDUCE 1.6 MILLION DOLLAR WORTH OF ELEMENTARY FTES.
IT WORKS OUT TO ABOUT 22 TEACHER FTES WHEN YOU COMBINE ALL OF THE CAMPUSES.
THAT IS KEEPING CLASS SIZES THE SAME THAT THEY ALWAYS HAVE BEEN.
THAT'S JUST REDUCING BASED ON ENROLLMENT.
>> I'M ASSUMING THAT YOU'RE ACCOUNTING FOR NOT JUST THE SALARY, BUT ALL THE OTHER BENEFITS TAXES ASSOCIATED WITH THAT.
>> THE SECOND LINE ITEM THERE IS A LITTLE BIT DIFFERENT THAN THE ELEMENTARY PIECE.
THE ELEMENTARY PIECE IS KEEPING CLASS SIZES AS THEY ARE STANDARD, BUT JUST RIGHT SIZING THE CLASSES FOR THE ENROLLMENT DECLINE.
THE SECOND PIECE IS REALLY LOOKING AT MASTER SCHEDULE EFFICIENCIES AT THE MIDDLE SCHOOL AND HIGH SCHOOL LEVEL AND RAISING OUR CORE CLASS SIZES BY ABOUT 3-4 STUDENTS.
DOING THAT, WE CAN SAVE ABOUT 110 TEACHER FTES, AGAIN, ALL DONE THROUGH NORMAL ATTRITION, WHICH IS SAVE US ALE OVER $8,000,000. YOU HAVE A QUESTION ON THAT ONE?
>> QUESTION ON THAT. DOES THAT INCLUDE THE DOUBLE BLOCKING OF ILA? BECAUSE I KNOW WE TALKED ABOUT THAT A LONG TIME AGO THAT THAT WAS SOMETHING THAT WAS BEING LOOKED AT.
>> THE NEXT LINE, SO AGAIN, THOSE ARE OUR CHANGES TO TEACHER FTES, AGAIN, ALL DONE THROUGH NORMAL ATTRITION.
THE OTHER ITEMS ON THIS LIST ARE SMALLER, BUT STILL HAVE A SIGNIFICANT IMPACT ON THE BUDGET. YES.
>> OUR CLASS AVERAGES AT MIDDLE SCHOOL IS 24 ACROSS THE BOARD.
WE STAFF AND TRY TO MAKE CERTAIN THAT WE HAVE ABOUT 28 STUDENTS IN OUR CLASSES.
BASICALLY, WE'RE RIGHT SIZING OUR CLASS SIZES TO BE WHERE WE PLAN FOR THEM TO BE.
AT THE HIGH SCHOOL LEVEL, SAME THING, WE'RE AVERAGING JUST BELOW 25 IN OUR CORE CLASSES.
WHILE WE MIGHT SEE A FEW MORE STUDENTS IN SOME CLASS SIZES, WE'RE NOT GOING TO RAISE CLASS SIZES TO SOME WEIRD LEVEL THAT'S WAY BEYOND WHAT WE'VE CONSISTENTLY STAFFED AT FOR THE PAST FEW YEARS.
>> THANK YOU FOR CLARIFYING THAT.
THE NEXT LINE ON HERE IS ADJUSTING HIGH SCHOOL STAFFING MODELS FOR ADMINISTRATIVE AND SUPPORT STAFF.
I GOT TO LOOK AT MY NOTES. THIS INCLUDES STANDARDIZING THE NUMBER OF ASSISTANT PRINCIPALS AND COUNSELORS BASED ON THE TOTAL ENROLLMENT OF THE CAMPUS.
IT ALSO INCLUDES REDUCING THE FRONT OFFICE ADMINISTRATIVE SUPPORT STAFF.
NOT THE SAME NUMBER AT EVERY CAMPUS, BUT THERE'S A TOTAL OF 19 IN THERE FOR FRONT OFFICE ADMINISTRATIVE PARAPROFESSIONAL STAFF.
THIS ALSO INCLUDES ELIMINATING THE NURSE ASSISTANT POSITION AND THE PARKING LOT ATTENDANT POSITION.
NOW, WHEN WE WENT THROUGH ALL OF THESE POTENTIAL OPTIONS FOR RESTRUCTURE,
[00:55:05]
I WANT TO BE REALLY CLEAR.WE LOOKED AT A LOT OF DIFFERENT THINGS, AND OUR GOAL WAS TO KEEP THINGS AS FAR AWAY FROM THE CLASSROOM AS POSSIBLE.
WE LOOKED AT THINGS THAT WE COULD DO TO BE MORE EFFICIENT WITH OUR SPENDING AND OUR STAFFING THAT WOULD NOT DIRECTLY IMPACT INSTRUCTION.
THOSE ARE SOME OF THE THINGS THAT WE CAME UP WITH AT THE HIGH SCHOOL LEVEL. DID YOU HAVE A QUESTION?
>> YES. WHAT IS THE TOTAL TEACHER HEAD COUNT GOING DOWN TO? BECAUSE I KNOW IT'S JUST BASED ON ATTRITION, SO FROM WHAT TO WHAT?
>> THAT'S A GOOD QUESTION THAT I DON'T HAVE OFF THE TOP OF MY HEAD.
THERE'S 132 TEACHER FTES IN THERE.
I'LL HAVE TO GET FOR YOU THE WHERE IT'S GOING.
IT'S 110 FOR SECOND MIDDLE AND HIGH SCHOOL AND THEN 22 FOR ELEMENTARY.
THAT'S THE ADMINISTRATIVE STAFFING MODEL.
WE ARE REDUCING THE HIGH SCHOOL COACHING ALLOCATIONS ONE PER CAMPUS.
IT'S GOING FROM 39 COACHES TO 38 COACHES.
THAT WILL SAVE US ABOUT $1,000,000.
WE'RE ALSO RESTRUCTURING THE DIGITAL LEARNING COACH POSITION.
WE WILL STILL HAVE DLCS, BUT WE'RE RESTRUCTURING THE SUPPORT MODEL THAT WE HAVE IN PLACE.
IN OTHER WORDS, THE SHARING OF CAMPUSES.
WE'RE JUST RESTRUCTURING THAT A LITTLE BIT TO GET MORE EFFICIENT WITH OUR STAFFING AND SPENDING THERE.
THAT IMPACTS 15 DIGITAL LEARNING COACHES.
WE'RE ALSO RESTRUCTURING OUR SECONDARY SPECIAL EDUCATION TRANSITION SERVICES RIGHT NOW.
WE HAVE POSITIONS ON EVERY HIGH SCHOOL CAMPUS, SO 12 OF THEM, AND WE ARE CENTRALIZING THAT AND SO WE'RE BRINGING TWO CENTRALLY.
THEN THAT'S A SAVINGS OF 10 FTES.
THEN WE HAVE SOME OTHER MINOR RESTRUCTURES THAT WE'RE DOING, MOST OF WHICH ARE THROUGH ATTRITION, MORE REDUCING THE NUMBER OF ADMINISTRATIVE INTERN POSITIONS THAT WE HAVE, THE NUMBER OF SECONDARY ESL LEADS THAT WE HAVE RAIL AND ACADEMY PROGRAM STAFF, AND THEN SOME STUDENT SERVICES STAFF.
REALLY, THESE RESTRUCTURES ARE JUST AS WE SEE THE ABILITY TO REDUCE BY ONE HERE AND SPREAD OUT THE WORKLOAD.
THAT'S WHAT WE'RE DOING. THAT'S WHERE YOU GET THAT LITTLE CHUNK.
ANYONE WHOSE JOB IS AFFECTED WILL HAVE AN OPPORTUNITY TO STAY IN FISCSD IN SOME CAPACITY IF THEY CHOOSE TO.
IN TOTAL, THAT'S 15.2 MILLION DOLLAR WORTH OF SAVINGS FROM STAFFING EFFICIENCIES AND RESTRUCTURES.
AS YOU CAN SEE IN MY LITTLE WORKING BUDGET OVER ON THE LEFT HAND SIDE, WE'RE GETTING REAL CLOSE TO BALANCED JUST WITH THAT.
ANY QUESTIONS ON THESE ITEMS BEFORE I MOVE ON? A COUPLE OF OTHER THINGS THAT WE'RE LOOKING AT THAT ARE NOT STAFF RELATED.
WE'RE LOOKING AT STANDARDIZING THE PROCESS FOR STUDENTS ATTENDING STATE LEVEL COMPETITIONS FOR CAREER AND TECHNICAL STUDENT ORGANIZATIONS.
ESSENTIALLY WHAT THAT LOOKS LIKE IS SETTING A STANDARD OF 100 STUDENTS PER HIGH SCHOOL TO ATTEND THOSE DISTRICT LEVEL COMPETITIONS.
THAT SHOULD SAVE US OVERALL ABOUT A HALF $1,000,000.
WE'RE ALSO LOOKING AT ALIGNING MONETARY SUPPORT FOR EXTRA CURRICULAR PROGRAMS, WHICH WILL SAVE US ABOUT $300,000.
THAT'S CENTRAL OFFICE MONETARY SUPPORT FOR EXTRA CURRICULAR PROGRAMS. JUST MAKING SURE THAT WE'RE CONSISTENT ACROSS WHAT WE'RE PROVIDING.
THEN OTHER NON INSTRUCTIONAL EXPENSES.
WE ARE LOOKING AT RESTRUCTURING OUR DISTRICT WIDE EVENTS.
THAT'S CONVOCATION AND TOP 10 TO CAMPUS BASED EVENTS, WHICH WOULD SAVE US JUST ABOUT $200,000.
THEN WE'RE ALSO LOOKING AT SUSPENDING THE 401A MATCHING CONTRIBUTION.
THAT'S ABOUT 1.3 MILLION DOLLAR.
THIS IS A FAIRLY UNIQUE BENEFIT THAT WE OFFER TO STAFF TO PROVIDE A MATCHING CONTRIBUTION TO VOLUNTARY RETIREMENT PROGRAMS. THERE ARE LESS THAN 20 DISTRICTS IN THE STATE THAT PROVIDE THAT.
IT'S A GREAT THING THAT WE'RE ABLE TO OFFER OUR STAFF.
WE HAVE SUSPENDED IT IN THE PAST, WHEN BUDGETS WERE TIGHT.
WE ARE NOT ELIMINATING THE 401A PLAN, AND WE'RE NOT FULLY ELIMINATING, WE'LL STILL CONTINUE TO PAY THE FEES THAT WE NEED TO PAY TO MAKE SURE THAT THAT PROGRAM STAYS IN PLACE.
BUT WE ARE RECOMMENDING SUSPENDING THAT MATCH.
THEN WE CAN REVISIT REINSTATING IT AT SOME POINT IN THE FUTURE IF THE FUNDS ARE AVAILABLE.
RIGHT NOW, ONLY ABOUT 25% OF OUR STAFF TAKE ADVANTAGE OF THAT 401A MATCH.
[01:00:04]
WE FELT LIKE THAT'S SOMETHING THAT WE COULD DO THAT'S FAR AWAY FROM THE CLASSROOM THAT WILL SAVE US $1 MILLION.>> KIM, WHEN WE LOOK AT POINT NUMBER 2 EXTRA CURRICULAR PROGRAMS AND STANDARDIZING THE PRACTICE FOR ATTENDING THOSE? DID WE EVER CONSIDER ALLOWING INDIVIDUAL STUDENT TO MAYBE COVER THE COST FOR SOME OF THOSE?
>> ANYBODY WANT TO? CTSOS? YES.
WHAT OUR GOAL IN THE STANDARDIZATION PROCESS IS REALLY TO MAKE SURE WE HAVE A SUSTAINABLE APPROACH WITH OUR CTSOS THAT'S TECHNICAL STUDENT ORGANIZATION PIECE.
WE'VE LOOKED AT THIS FROM ALL DIFFERENT ANGLES, AND SO ELIMINATING THE PER DM SAVES US ABOUT $182 ABOUT AND THEN CAP THAT NUMBER FOR THE DISTRICT LEVEL AT A 100.
REALLY GIVES US SOME ADDITIONAL SAVINGS THAT WE NEED AND ALSO ALLOWS FOR THAT STANDARDIZATION ACROSS OUR SCHOOLS.
WE HAVE SOME SCHOOLS THAT HAVE 50 GOING.
WE HAVE SOME THAT HAVE OVER 400.
IT HAS LOTS OF COSTS FOR CHARTER BUSES AND THOSE KIND OF THINGS.
WE HAVE LOOKED AT IF STUDENTS WERE TO INCREASE FEES OR SOMETHING OF THAT NATURE.
BUT THERE IS SO MUCH BEHIND THE SCENES COST WHEN YOU'RE TALKING ABOUT CHARTER BUSES, ALSO PAYING FOR CHAPERONES TO ATTEND ALL OF THESE EVENTS AND STAFF TRAVEL AS WELL.
>> THE ONLY REASON I BRING THAT UP IS BECAUSE, I KNOW IN THIS ECONOMIC ENVIRONMENT, WE DO HAVE TO DO COST CUTS, BUT I THINK IN OUR DISTRICT, THERE'S A FAIR AMOUNT OF STUDENTS WHO WOULD PREFER TO JUST GO IN AND PAY THAT.
>> TO ADD ON TO WHAT KRISTIE WAS SAYING.
THERE ARE SOME COSTS THAT WE DON'T ALLOW STUDENTS AND PARENTS TO COVER.
FOR EXAMPLE, IF WE HAVE STUDENTS GOING TO AN EVENT, WE'RE REQUIRED TO SEND CHAPERONES AND WE DON'T ASK PARENTS TO PAY FOR THE DISTRICT'S COST OF SENDING CHAPERONES.
THERE ARE SOME COSTS THAT WE WOULD CONTINUE TO INCUR IF WE KEPT THOSE NUMBERS HIGH THAT WE WOULD NOT PASS ALONG TO PARENTS.
WE DON'T DO THAT IN ANY OTHER AREA AND SO WE WOULDN'T WANT TO.
YES, WE MAY ALSO HAVE STUDENTS AND FAMILIES THAT COULDN'T AFFORD THAT AND THEN WE WOULD PAY TO SCHOLARSHIP THOSE STUDENTS.
WE WOULDN'T BE ABLE TO NECESSARILY SAVE THE AMOUNT OF MONEY IF WE JUST PASSED IT ALL ALONG.
DID YOU HAVE A QUESTION ABOUT ANY OF THESE?
>> I DID. I'VE GOTTEN A FEW PHONE CALLS OVER THE LAST WEEK SPECIFICALLY AROUND THIS PARTICULAR PROGRAM.
HOW DO OTHER DISTRICTS HANDLE THE COST TO SEND STUDENTS TO THESE, I GUESS, IT'S COMPETITIONS THAT THEY DO THAT ARE OUT OF TOWN.
>> WE NEED TO GIVE KRISTIE AND MIKE AGAIN.
>> OTHER DISTRICTS DO NOT SEND THE VOLUME THAT WE SEND TO THESE COMPETITIONS.
FOR EXAMPLE, I'LL JUST TRY TO PUT IN PERSPECTIVE.
WE HAD A DECCA REGIONAL COMPETITION.
THERE WERE DR. HARPS OVER HERE TO HELP ME KEEP ME ON THIS.
I THINK THERE ARE ABOUT 2,300 STUDENTS FROM OUR ENTIRE REGION, AND WE SENT 1,600 OF THE 2,300.
IF THAT PUTS IT IN PERSPECTIVE, WE HAD 34 CHARTER BUSES.
HOW MANY CHAPERONES? IT WAS A LOT TO HANDLE ALL OF THAT BECAUSE WE HAVE TO HAVE A STAFF MEMBER IN CHAPERONE.
THAT DAY THAT'S HOW MANY CHARTER BUSES LEFT FROM FRISCO.
IF IT PUTS IT IN PERSPECTIVE, NO OTHER DISTRICT HAS THAT VOLUME.
>> I HAVE RECEIVED SEVERAL MESSAGES TOO ABOUT THE SAME THING, ESPECIALLY THE CTSO RELATED PLANS THAT WE HAVE.
I PERSONALLY THINK THAT IF THERE'S AN OPPORTUNITY, I AGREE WITH WHATEVER WE NEED TO DO BUT AT THE SAME TIME, IF WE CAN REVISIT THAT PARTICULAR LINE ITEM BECAUSE IT IS IMPACTING SOME OF THE ADMISSIONS FOR SOME OF THE STUDENTS FOR THEIR COLLEGE ADMISSIONS AND ALL AND THEN WE ARE ALL FOR THE STUDENT ACHIEVEMENT.
WHAT CAN WE DO IN ORDER TO TAKE CARE OF OUR STUDENTS? I WOULD LIKE THAT TO BE REVISITED.
>> ONE OF THE IDEAS THAT I KNOW HAS BEEN TOSSED AROUND FOR SOME OF THE CAMPUSES THAT HAVE MORE THAN 100 STUDENTS THAT
[01:05:04]
TYPICALLY PARTICIPATE AS MAYBE HOLDING A CAMPUS LEVEL COMPETITION SO THAT THOSE STUDENTS CAN STILL HAVE AN OPPORTUNITY TO PARTICIPATE IN A COMPETITION, BUT LIKE A CAMPUS LEVEL COMPETITION TO DETERMINE WHICH HUNDRED GO TO THE STATE SO THEY CAN STILL PARTICIPATE IN SOME WAY.>> WE HAVE FOUR SCHOOLS OUT OF THE 12 THAT ARE ABOVE THAT HUNDRED THAT WE'RE WORKING WITH, AND WE'RE GOING TO WORK WITH THEM INDIVIDUALLY.
DR. JONES, OUR CT COORDINATOR HAS ALREADY BEEN MEETING WITH THEM.
THE PRINCIPALS ARE ALL ON BOARD, GETTING VERY CREATIVE OF HOW TO GET TO THAT HUNDRED.
WE'RE FEELING REALLY GOOD ABOUT WHERE WE ARE IN TERMS OF THE ADMINISTRATIVE SUPPORT ON THAT TOO.
JUST SO YOU KNOW THREE YEARS AGO, WHEN I FIRST CAME INTO THIS POSITION TO THE TEACHING AND LEARNING WORLD BACK AGAIN.
THEN WHEN DR. HARP CAME AS WELL, SOME OF THE BIGGEST FEEDBACK WE GOT WAS THE BURDEN AND THE VOLUME OF THE CTSO TRAVEL THAT'S HAPPENING ON CAMPUSES.
WHILE WE HAVE SOME PEOPLE THAT ARE PROBABLY YOU'RE HEARING FROM AND ARE NOT HAPPY ABOUT IT, WE HAVE A LOT OF PEOPLE THAT ARE VERY HAPPY THAT WE'RE MAKING THIS CHANGE AND GRATEFUL FOR IT.
>> IT DOES CREATE A SIGNIFICANT ADMINISTRATIVE, SINCE I CAN VOUCH FOR THAT FROM THE BUSINESS OFFICE ANYWAY.
I UNDERSTAND THE MONETARY PIECE OF IT.
I HAVE RECEIVED FEEDBACK FROM SEVERAL CAMPUSES OF STUDENTS THAT HAVE SHARED RESOLUTIONS, DIFFERENT RECOMMENDATIONS AND THINGS THAT THEY BELIEVE WOULD MAKE SOMETHING LIKE THIS WORK.
HAVE WE GIVEN THE STUDENTS, I KNOW WE HAVE A SUPERINTENDENT ADVISORY COUNCIL OF STUDENTS, HAVE WE MET WITH THEM TO FIND OUT NOT SAYING THAT WE'RE GIVING THEM WELL, I REALLY WOULD LIKE TO HEAR FROM THEM.
YOU PROBABLY REALLY DO FEEL GREAT ABOUT IT, AND YOU'VE PROBABLY HAD SOME GREAT COMMUNICATION.
BUT THE COMMUNICATION THAT WE'RE RECEIVING FROM ADMINISTRATORS, AS WELL AS STUDENTS IS NOT SO GREAT.
>> WELL, AND ALSO JUST ALONG THIS LINE ITEM IS THAT THIS INFORMATION WAS INTENDED TO BE INTERNAL BECAUSE WE HAVEN'T RELEASED OUR FULL COMMUNICATION, AND I KNOW I PUT THAT IN THE HOME BASE IN TERMS OF WHEN OUR TIMELINE WAS.
THIS INFORMATION WAS INTERNAL AND IT WAS RELEASED TO EXTERNAL PEOPLE, AND THAT'S WHERE I THINK ALL THIS FEEDBACK IS COMING FROM, BUT THEY ALSO DON'T KNOW OUR PLANS YET, BECAUSE WE'RE STILL DEVELOPING THOSE.
THAT'S WHY WE WEREN'T GOING TO COMMUNICATE UNTIL RIGHT BEFORE SPRING BREAK.
ONCE WE WORKED WITH THOSE CAMPUSES OF HIGH ENROLLMENT TO MAKE SURE THEY'RE REALLY CLEAR SO WE COULD COMMUNICATE, SO IT ELIMINATES SOME OF THAT CHAOS AND WORRY AND FEAR OF WHAT THAT LOOKED LIKE TO GET TO THE HUNDRED.
>> IF WE HAVE AND I UNDERSTAND THAT THERE'S A FINE LINE.
I'VE OPERATED IN THAT AS BEST I COULD, DR. WALDER.
NOT DIPPING MY TOES IN OPERATIONS, BUT I REALLY WANT TO MAKE SURE THAT WE HAVE EXHAUSTED.
YOU'RE SAYING WE HAVE FOUR CAMPUSES THAT EXCEED THAT.
WHAT ARE THE OTHER CAMPUSES ARE THEY AT A DEFICIT? DO THEY HAVE LOWER NUMBERS? IS THERE A PERCENTAGE THAT WE CAN TAKE BECAUSE ALL OF OUR CAMPUSES HAVE DIFFERENT ENROLLMENT.
>> TWO OF THE CAMPUSES THAT I KNOW ARE ON YOUR LIST OF FOUR HAVE LARGE NUMBERS, BUT THEY WERE FULL LAST YEAR.
THOSE CAMPUSES, YOU UNDERSTAND? I'M WONDERING IF WE MAY CONSIDER USING A PERCENTAGE TO INCLUDE STUDENTS ACROSS THE BOARD.
BECAUSE IF YOU HAVE A CAMPUS THAT ONLY HAS 40 STUDENTS PARTICIPATE AND WE STILL HAVE 60 SLOTS AVAILABLE ON THAT CAMPUS, DO WE PUSH THEM OVER TO ONE OF THE CAMPUSES THAT HAS MORE? THOSE ARE THINGS THAT I'VE BEEN HAVING COMMUNICATION ABOUT.
I JUST WANT TO MAKE SURE THAT WE'RE EXHAUSTING EVERY OPPORTUNITY THAT WE CAN.
I KNOW THAT YOU ALL ARE DOING WHAT'S BEST FOR KIDS, BUT I REALLY FEEL PASSIONATELY ABOUT FINDING A RESOLVE THAT'S GOOD FOR EVERYBODY.
>> I PIGGYBACK ON WHAT SHE SAID, THAT'S REALLY WHAT STARTS A CONVERSATION.
I KNOW THE DISTRICT HAS A WAY TO MAKE THIS EQUAL FOR ALL CAMPUSES AND EVERYBODY HAVING A SHOT.
BUT I THINK SOME OF THE THINGS WE DO IS JUST GREAT AND WE DO GET GOOD PARTICIPATION.
IF THERE'S ANY WAY WE CAN REVISIT JUST THAT PIECE OF IT WITH BEING A LITTLE MORE CREATIVE AS FAR AS INCLUDING AS MANY STUDENTS AS WE CAN.
[01:10:02]
I DON'T KNOW WHAT THAT'S GOING TO LOOK LIKE, BUT IF WE COULD JUST REALLY LOOK AT THAT.I THINK IT'S REALLY SOMETHING THAT THE BOARD REALLY IS IMPORTANT TO US.
MATTER OF FACT, I KNOW IT'S JUST IT'S IMPORTANT TO YOU ALL.
YOU GUYS JUST HAVE TO MAKE IT WORK.
IF THAT COULD JUST BE SOMETHING THAT'S LOOKED AT.
>> I'M SURE TEACHING AND LEARNING WILL CONTINUE TO LOOK AT THIS AND LET YOU GUYS KNOW WHAT THE COMMUNICATION PLANS ARE.
LIKE KERCE SAID, YOU'VE GOTTEN SOME INFORMATION IN HOME BASE AND WE'VE TALKED ABOUT THESE THINGS IN OUR ONE-ON-ONE MEETINGS OVER THE LAST MONTH OR SO.
BUT WE WEREN'T ORIGINALLY GOING TO INCLUDE IT IN TONIGHT'S DISCUSSION BECAUSE WE WERE WAITING TO FULLY DEVELOP THOSE COMMUNICATION PLANS SO THAT IT WOULD BE A LITTLE BIT EASIER TO SWALLOW BY OUR COMMUNITY WHEN WE DID RELEASE IT.
BUT SINCE THE INFORMATION LEAKED, WE WENT AHEAD AND TALKED ABOUT IT.
I CAN TELL YOU THAT I HAVEN'T BEEN DEEPLY INVOLVED IN THESE DISCUSSIONS, BUT I CAN TELL YOU THAT THEY'VE BEEN TALKING ABOUT THIS FOR ABOUT A YEAR NOW.
I DON'T WANT ANYBODY TO THINK THAT THIS WAS JUST THROW SOMETHING AT THE WALL AND SEE IF IT STICKS.
ONE HUNDRED STUDENTS, FOR EXAMPLE, WE CAME UP WITH 100 STUDENTS BECAUSE THAT FILLS TWO CHARTER BUSES.
CHARTER BUSES ARE VERY EXPENSIVE, SO TWO CHARTER BUSES PER CAMPUS HELPS US KEEP OUR COSTS EFFICIENT AND THINGS LIKE THAT.
WE DO NEED TO MOVE ON TO THE LAST COUPLE OF THINGS.
I'M NOT SAYING THAT YOU WON'T GET MORE INFORMATION OR THAT WE'RE CUTTING THAT OFF, BUT I DO WANT TO SPEAK FOR THEM AND SAY THAT I KNOW THAT THEY'VE BEEN HARD AT WORK AT THIS FOR ABOUT A YEAR LOOKING AT WHAT OTHER DISTRICTS DO, WHAT ALL OF THE OPTIONS ARE.
HOW CAN WE BE FAIR TO EVERYONE? STILL MAINTAIN PARTICIPATION AND THAT THING? ONE THING THAT YOU WILL NOT SEE ON THE SLIDE, BUT THAT WE HAVE TALKED ABOUT AND ALSO OUR COMMUNITY IS AWARE OF IS THE PHASE-OUT OF THE HARP PROGRAM.
IT'S NOT ON THE SLIDE BECAUSE IT DOESN'T HAVE ANY BUDGETARY IMPACT NEXT YEAR.
THE IDEA IS THAT WE WOULD PHASE THAT PROGRAM OUT OVER TIME, BEGINNING WITH INCOMING SIXTH GRADERS NEXT YEAR.
ANYBODY WHO'S CURRENTLY IN THE HARP PROGRAM GETS TO STAY IN THE HARP PROGRAM, WE WILL CONTINUE TO PAY FOR THAT PROGRAM AND THE STAFF THAT SUPPORT IT UNTIL THE LAST CURRENT SIXTH GRADER IS GRADUATED AND NO LONGER PLAYS THE HARP.
BUT A PHASE-OUT ESSENTIALLY JUST MEANS THAT WE WON'T BE BRINGING ANY NEW STUDENTS INTO THE HARP PROGRAM IN FUTURE YEARS.
>> I KNOW WE WENT THROUGH A LOT OF THIS WITH US, WELL, MAINLY ALL OF IT.
I KNOW THAT WE OWN THE HARPS THAT OUR STUDENTS ARE UTILIZING.
>> I'M PRETTY SURE WE DO. YES.
>> WHAT'S GOING TO HAPPEN WITH THAT?
>> I DON'T HAVE AN ANSWER TO THAT QUESTION RIGHT NOW, BUT I CAN GET IT FOR YOU.
BUT LIKE I SAID, WE WILL CONTINUE TO HAVE HARP FOR THE NEXT SIX YEARS.
>> THEN YOU ALSO SAID THAT THERE WAS NO BUDGETARY AMOUNT, CAN YOU ELABORATE ON THAT?
>> YEAH, BECAUSE THEY WON'T SAVE US ANY MONEY NEXT YEAR BECAUSE WE STILL NEED THE SAME NUMBER OF STAFF TO SERVE THE STUDENTS THAT ARE CURRENTLY IN THE HARP PROGRAM.
UNTIL WE GET A FEW YEARS IN AND HAVE A FEW YEARS WHERE WE HAVEN'T ADDED ANY NEW HARPISTS, WE WON'T BE ABLE TO REDUCE THAT PROGRAM STAFF.
THERE'S NO SAVINGS FOR AT LEAST THE FIRST FEW YEARS.
LIKE YOU CAN SEE ON MY LEFT SIDE OF THE SCREEN, WE'RE DOWN TO WHAT I WOULD CONSIDER A BALANCED BUDGET, BUT I KNOW THAT WE ALL WANT TO GET ALL THE WAY TO ZERO.
WE'RE DOWN TO A $3.1 MILLION DEFICIT THAT WE NEED TO BALANCE.
THERE ARE STILL SOME THINGS THAT NEED TO BE CONSIDERED.
FINAL SAVINGS FROM TURNOVER FOR THIS YEAR AND WHETHER WE CAN FACTOR ANY OF THAT, WHETHER IT'S MORE OR LESS THAN WHAT WE NORMALLY HAVE AND WE CAN FACTOR ANY OF THAT IN.
CENTRAL OFFICE SAVINGS FROM THOSE POSITIONS ON HOLD THAT I TALKED TO ABOUT EARLIER.
POTENTIAL ADDITIONAL STAFF TO ADDRESS HB 3 MANDATES, WHICH IS A CONVERSATION THAT'S BEEN ONGOING FOR THE LAST YEAR OR SO.
IF ANY CHANGES COME FROM THAT, WE'LL HAVE TO MAKE ADDITIONAL CUTS IN ORDER TO MAKE THAT HAPPEN.
THEN ANY OTHER CHANGES TO DEPARTMENT BUDGETS, LIKE I SAID, DEPARTMENTS AND CAMPUSES SPEND MARCH WORKING THROUGH THAT PRIORITIES BASED BUDGETING PROCESS.
IF THERE ARE ANY INFLATIONARY INCREASES THAT ARE NEEDED OR ANY ADDITIONAL SAVINGS OPPORTUNITIES, WE'LL BRING THOSE BACK TO YOU AT A LATER BUDGET WORKSHOP.
THE LAST THING THAT IS NOT INCLUDED IN THIS BUDGET, WHICH AGAIN IS PRETTY MUCH BALANCED IS PAY RAISES.
WE DO EXPECT TO GET MONEY FROM THE LEGISLATURE.
[01:15:02]
WE ARE GOING TO HOLD ON RECOMMENDING PAY RAISES UNTIL WE KNOW WHAT WE'RE GETTING FROM THE LEGISLATURE, AND WHAT ANY REQUIREMENTS FOR TEACHER PAY INCREASES WILL BE FROM THEM.THE GOAL IS THAT THE NUMBER 1 PRIORITY FOR ANY MONEY COMING FROM THE LEGISLATURE IS COMPENSATION FOR STAFF.
THAT'S WHAT WE WILL DO WITH IT FIRST AND FOREMOST, OUTSIDE OF ANY MANDATES THAT WE HAVE FROM THE STATE.
THEN I WANT TO MAKE SURE THAT WE ALL UNDERSTAND THAT WE'RE TAKING THIS A YEAR AT A TIME.
I DON'T EVEN KNOW IF ANY OF YOU WERE ON THE BOARD WHEN WE USED THE MULTI-YEAR FINANCIAL PLAN TO BALANCE THE BUDGET BUT USED TO, WE WANTED TO MAKE SURE THAT WE WERE BALANCED THREE YEARS OUT BECAUSE WE WANTED TO CREATE A SUSTAINABLE FINANCIAL PLAN.
THAT IS NOT OUR REALITY ANYMORE, UNFORTUNATELY, AND SO WE ARE LOOKING AT THIS YEAR BY YEAR.
WHILE WE WILL BE BALANCED THIS YEAR, WE WILL HAVE TO CONTINUE GOING THROUGH THIS PROCESS NEXT YEAR WITH ENROLLMENT DECLINE.
BECAUSE LIKE WE TALKED ABOUT, WE CAN'T REDUCE DOLLAR FOR DOLLAR FOR EVERY DOLLAR WE LOSE IN STUDENT ENROLLMENT.
QUESTIONS ON ANY OF THOSE ITEMS THAT WERE ON THE LIST.
>> YES. I DON'T MEAN TO BEAT A DEAD HORSE, BUT CAN WE GO BACK TO CTSO TRAVEL? IS THERE ANY WAY WE CAN WORK OUT WHAT THE COST WOULD BE IF WE DID TRAVEL EXACTLY LIKE WE DID LAST YEAR IN SOME WAY, AT LEAST THAT WE KNOW THAT NUMBER? THE SECOND THING IS JUST TRY TO REALLY FIGURE OUT A WAY TO ALLOW THAT TO REALLY HAPPEN.
I PROBABLY NEVER HEARD MORE FROM OUR CITIZENS THAN I HAVE ON THAT.
IT'S SOMETHING THAT'S REALLY IMPORTANT.
I REALLY THINK IT'S WORTH TAKING ANOTHER LOOK.
IT'S REALLY A COMMENTARY ON HOW WELL THE DISTRICT DOES WITH A LOT OF THEIR PROGRAMS THAT IS SO POPULAR.
>> WHEN YOU SAY, CAN WE LOOK AT IF WE DID IT LIKE WE DID LAST YEAR.
>> IN OTHER WORDS, WE'RE SAVING MONEY BY SAVING ONLY 100.
>> PUT A HALF A MILLION DOLLARS. YEAH.
>> WE ALREADY KNOW THAT NUMBER.
>> YES. WE'RE SAVING WE WOULD SAVE IT. [OVERLAPPING]
>> IS THERE ANY WAY WE CAN FIGURE OUT HOW WE COULD RAISE THAT MONEY? WE ALREADY KNOW THAT WHEN WE HAVE LESS THAN $50 MILLION DEFICIT, IT USUALLY WORKS ITSELF OUT.
WE'RE LOOKING AT A HALF A MILLION DOLLARS BUT IT HAS AN IMPACT ON QUITE A FEW STUDENTS.
EVEN IF WE DID SOMETHING LIKE LET THEM PAY FOR IT AND MAYBE DEVELOP SOME TYPE OF SCHOLARSHIP FOR KIDS WHO WEREN'T ABLE TO DO IT, I THINK THAT WOULD BE A BETTER SOLUTION AND IT'S NOT ARBITRARY THAN JUST CUTTING IT OFF AT 100.
IT'S JUST SOMETHING THAT I REALLY THINK.
[LAUGHTER] I THINK IT WOULD BE HELPFUL TO KNOW SOME OF THE THINGS THAT WERE ON THE TABLE, THINGS THAT YOU LOOKED AT AND DECIDED AGAINST.
I REALIZED THAT SHARING THAT CAN CREATE SOME ISSUES.
BUT MAYBE EVEN IF WE HAD SOME ADDITIONAL INDIVIDUAL MEETINGS WITH YOU LIKE WE DID IN JANUARY TO JUST BE ABLE BECAUSE THERE COULD BE SOMETHING.
I DON'T EVEN WANT TO THROW OUT AN EXAMPLE, BUT MAYBE THERE'S SOMETHING THAT THE BOARD FELT WOULD BE SOMETHING THAT WE SHOULD LOOK AT.
WE JUST STARTED TALKING ABOUT SOMETHING RIGHT NOW THAT I THINK SEVERAL TRUSTEES ARE LIKE, WELL, I DON'T KNOW ABOUT THAT.
THERE MAY BE SOME THINGS THAT THE BOARD JUST LOOKS AT A LITTLE BIT DIFFERENTLY IF THOSE WERE TO BE PRESENTED TO US OF THINGS THAT WERE CONSIDERED BUT YET DIDN'T MAKE THE FINAL CUT.
>> YEAH. IF YOU GUYS WANT ANOTHER INDIVIDUAL MEETING TO TALK THROUGH SOME OF THOSE THINGS, TO YOUR POINT, I WOULD HESITATE TO PRESENT ANY OF THOSE PUBLICLY BECAUSE IT WOULD CREATE UNDUE STRESS, SINCE WE'RE NOT RECOMMENDING THEM.
BUT IF IT'S SOMETHING THAT YOU'RE INTERESTED IN, WE CAN DEFINITELY SCHEDULE MORE ONE-ON-ONE MEETINGS.
>> I'LL JUST ADD A COMMENT. A BALANCED BUDGET TO ME IS A REFLECTION OF A HEALTHY DISTRICT, AND SO ALL THE WORK THIS BOARD OVER THE LAST YEAR OR TWO IN PUSHING FOR A BALANCED BUDGET,
[01:20:04]
AND PARTICULARLY YOU AND YOUR TEAM AND DOCTOR WALDER BON DAWN AND GETTING TO THIS IS AN EXTRAORDINARY ACHIEVEMENT IN MANY WAYS.THE ONE THAT COMES TO MY MIND IS HOW WE HAVE A SMALL SCHOOL FORMAT AND WE'RE ABLE TO DELIVERY VERY HIGH RESULTS, AND THERE'S A LOT OF REASONS FOR THAT.
BUT I THINK GETTING TO THIS BALANCED BUDGET AND WHAT YOU'RE PRESENTING TO US TODAY IS OBVIOUSLY VERY WELCOMED.
SOME OF THE CTSO AND SOME OF THESE OTHERS WE CAN CERTAINLY TALK ABOUT.
BUT I THINK THIS IS A VERY GOOD SIGN FOR THIS DISTRICT AND I KNOW TO STEPHANIE'S MOST RECENT QUESTION, I CAN TELL AND I WANTED TO SAY THIS IS THAT EVERY TIME I'VE GONE TO A BUDGET RELATED MEETING WITH DOCTOR WALDROP OR WITH YOU AND YOUR TEAM, THE FIRST THING WE TALK ABOUT IS KEEPING INSTRUCTION AT ITS HIGH LEVEL.
THERE ARE ALWAYS GOING TO BE LITTLE THINGS OR THINGS, I DON'T WANT TO EVEN MINIMIZE THEM.
CTSO IS A GREAT POINT THAT WE'RE ALL TALKING ABOUT HERE.
THE HARP PROGRAM IS ANOTHER THING WE HEAR ABOUT A LOT.
BUT I JUST WANTED PEOPLE TO KNOW LITERALLY BEFORE I CAN EVEN ASK A QUESTION, AND I ASK QUESTIONS, IS WE'RE GOING TO DO EVERYTHING WE CAN TO KEEP INSTRUCTION AT THE HIGH LEVEL THAT FISD IS USED TO, AND THEN WE START THE CONVERSATION FROM THERE.
THAT IS SOMETHING THAT I HAVE NOTED AND THAT I APPRECIATE.
I KNOW I SPEAK FOR THE OTHER TRUSTEES IN THAT REGARD, TOO.
I KNOW IN THE CHALLENGES THIS PRESENTS, I JUST WANTED EVERYBODY TO KNOW THAT'S THE FIRST THING THAT COMES OUT EVERYBODY'S MOUTH.
>> THANK YOU FOR THAT. I DO WANT TO JUST MENTION THAT SOMETHING TODD ALWAYS SAYS WHEN WE TALK ABOUT THIS BUDGET AS AN INSTRUCTIONAL SUPPORT TEAM IS, YOU CAN DO THE BIG THINGS.
WE'VE GOT SOME OF THE BIG THINGS IN TERMS OF RIGHT-SIZING STAFFING MODELS, BUT THEN EVERYTHING BEYOND THAT, YOU'RE LOOKING FOR A DOZEN WAYS TO SAVE A HALF A MILLION DOLLARS, WHEN YOU'RE CLOSING A BUDGET GAP LIKE THIS.
WHILE SOME OF THESE THINGS, AND SOME OF THE THINGS THAT ARE GOING TO COME AS WE GET RID OF THAT LAST THREE MILLION DOLLAR GAP, IT'S GOING TO BE SEVERAL THINGS THAT ARE 100,000 HERE OR 500,000 THERE.
IT'S GOING TO FEEL LIKE WE'RE JUST PICKING BUT IN A BUDGET OUR SIZE, WE CAN ONLY DO SO MUCH WITH STAFF BEFORE IT STARTS TO IMPACT INSTRUCTION, LIKE YOU SAID.
I DO WANT TO JUST PREPARE EVERYONE FOR THAT.
IT MAY FEEL LIKE SMALL DOLLARS IN THE GRAND SCHEME OF A $750 MILLION BUDGET, BUT THE REST OF THE THINGS THAT WILL COME AFTER THIS WILL LIKELY BE THESE SMALL THINGS THAT WE'RE DOING TO FIND DEFICIENCIES.
>> I DON'T KNOW IF ANYONE ELSE HAS ANYTHING, BUT I WANTED TO JUST SHARE BECAUSE WE ARE AT THE END OF THIS AND WE'RE GOING TO GO INTO COMMUNITY INPUT NIGHT, THAT WE REALLY DO APPRECIATE ALL OF THE WORK THAT YOU AND THE 200 PLUS BUDGET HOLDERS, PEOPLE THAT ARE CONSTANTLY WORKING DAY IN AND DAY OUT.
THE QUESTIONS THAT WE ASK HERE, WHILE THEY ARE IMPORTANT QUESTIONS AND RECOMMENDATIONS THAT WE'RE GIVING, THAT DOES NOT TAKE AWAY FROM WHAT WE SEE YOU ALL DOING ON A DAY-TO-DAY BASIS.
I WANT TO MAKE SURE THAT YOU RECEIVE YOUR PUBLIC, THANK YOU FROM US BECAUSE IT DOES MATTER.
>> THANK YOU TO THE REST OF FISD BECAUSE THIS IS A TRULY TEAM EFFORT. THAT'S ALL I'VE GOT.
>> IT'S 6:29, WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.