GOOD AFTERNOON, IT IS 1:00 P.M.
[I. Call to Order and Determination of a Quorum.]
[00:00:07]
AND I'M CALLING ORDER THE GARLAND INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES WORKING MEETING FOR TUESDAY, MARCH TWENTY THIRD 2021, DETERMINED THAT A QUORUM IS PRESENT.MEETINGS OF THE BOARD OF TRUSTEES WILL BE HELD IN THE BOARDROOM AT 601 SOUTH JUPITER, GARLAND, TEXAS 75042 DUE TO HEALTH CONCERNS RELATED TO TO THE COVID-19 CORONAVIRUS MEMBERS OF THE PUBLIC MAY ATTEND BOARD MEETINGS IN THE GARLAND AND ROWLETT ROOMS OF HARRISVILLE ADMINISTRATION BUILDING WITH LIVE STREAMING.
PER TEA GUIDANCE AS REFERENCED IN GOVERNOR ABBOTT'S EXECUTIVE ORDER GA-34 EVERYONE PHYSICALLY PRESENT MUST WEAR A FACE MASK AT ALL TIMES AND SHOULD PRACTICE SIX FEET SOCIAL DISTANCING.
MEMBERS OF THE PUBLIC WHO WISH TO MAKE COMMENTS MAY COMPLETE A PUBLIC COMMENT PARTICIPATION REQUEST IN PERSON AT HARRISVILLE ADMINISTRATION BUILDING OR VIA EMAIL AT BOARDPUBLICCOMMENTS@GARLANDI SD.NET PRIOR TO THE START OF THE MEETING INDICATED IN THE POSTING NOTICE THE EMAIL COMMENTS WILL BE READ ALOUD AT THE MEETING BY DESIGNATED SPEAKER.
EMAIL SHOULD INCLUDE THE REQUESTERS NAME, ADDRESS AND THE DETAILED TOPIC TO BE READ ALOUD.
IN ADDITION, COMMENTS MUST BE LIMITED TO ISSUES THAT CAN BE PRESENTED IN A PUBLIC FORUM AND ARE DIRECTLY RELATED TO THE POST IT AND NOTICE NOTICED AGENDA ITEMS. COMPLAINTS ABOUT STUDENT DISCIPLINE, SPECIFIC STUDENT ISSUES OR PERSONNEL MUST BE ADDRESSED THROUGH APPROPRIATE ADMINISTRATIVE CHANNELS IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT AND BOARD POLICY.
FOR MORE INFORMATION ABOUT PUBLIC COMMENT PROCEDURES, PLEASE REVIEW THE BOARD POLICY FOR PUBLIC COMMENT ACCESSIBLE AT THE FOLLOWING LINK.
AND IT'S GIVEN HERE IN THE AGENDA.
[IV. Superintendent's Message]
WE WILL NOW MOVE TO ITEM FOUR SUPERINTENDENTS MESSAGE.I WANT TO THANK THE BOARD FOR JOINING US TODAY AT THIS WORKSHOP.
COMMUNITY MEMBERS THAT ARE IN ATTENDANCE.
I WANT YOU TO UNDERSTAND THIS IS GOING TO BE A VERY INTENSE WORKSHOP.
THE FINANCE SYSTEMS IS VERY COMPLICATED IT'S VERY COMPLICATED FOR SCHOOL SYSTEMS. AND TODAY YOU'RE GOING TO SEE A NUMBER OF DIFFERENT SCENARIOS DEALING WITH OUR BOARD WORKSHOP.
WE ALSO HAVE SOME SPECIAL GUESTS THAT ARE LOGGING IN VIRTUALLY TO WATCH OUR BUDGET WORKSHOP, AND THEY'RE LOGGING IN FROM THE DOCTORATE PROGRAM, THE CSP PROGRAM FOR THE UT LONGHORNS.
SO WE WANT TO WELCOME THEM AS WELL.
[V.A. Planning for 2021-2022 Fiscal Year: General Fund, Student Nutrition Service Fund, and Debt Service Fund - Dr. Brent Ringo, Brandy Mayo]
WE'LL PROCEED TO ITEM FIVE, BUDGET WORKSHOP, ITEM EIGHT, PLANNING FOR THE 2021 2022 FISCAL YEAR GENERAL FUND, STUDENT NUTRITION SERVICE FUND AND DEBT SERVICE FUND.DOCTOR RINGO, IF I COULD, BEFORE YOU GET STARTED, TRUSTEES I WOULD LIKE TO SUGGEST.
MS. GRIFFIN, COULD YOU SPEAK INTO THE MICROPHONE.
I WOULD LIKE TO SUGGEST THAT WE FOLLOW ALONG IN THE OUTLINE IN WHICH HAS BEEN PRESENTED .
MUCH CARE HAS GONE INTO THE ORGANIZATION OF THIS WORKSHOP.
AND ALSO I WOULD LIKE TO ASK DR.
RINGO AND MS. MAYO, WHEN WE SWITCH FROM ONE TOPIC TO ANOTHER, IF WE WOULD PAUSE AND GET THOSE QUESTIONS ANSWERED THEN AND THEN WE CAN CONTINUE TO PROCEED.
BUT ALMOST EVERYTHING AS IT RELATES TO THE BUDGET WORKSHOP IS WITHIN THIS DOCUMENT.
AND EVEN IF YOU HAD RECEIVED A REPORT PRIOR TO ALERTING US OF VARIOUS AREAS, WE HAVE COME BACK AND TRIED TO PUT ALL OF THIS IN THIS WORKSHOP DOCUMENT.
SO IF WE COULD PROCEED UNDER THOSE DIRECTIONS, UNLESS YOU HAVE A DISAGREEMENT WITH THAT.
YES, MS. GRIFFIN, WE'RE HAPPY TO DO THAT.
AND MR. SELDERS, MS. GRIFFIN, OUR FINANCE CHAIR AND BOARD OF TRUSTEES.
DR. LOPEZ, GREAT TO SEE YOU THIS AFTERNOON.
MISS MAYO AND I WILL COVER OUR BUDGET DETAILS AND THAT OF THE THREE BOARD ADOPTED BUDGETS, WHICH ARE THE GENERAL FUNDS, STUDENT NUTRITION FUND AND DEBT SERVICE FUND, AND THEN OUTLINES PROJECTIONS AND MULTI-YEAR PROJECTIONS.
AS DR. LOPEZ NOTED TEXAS SCHOOL OF FINANCE, SCHOOL BUDGET, YOU ARE FLYING THE AIRPLANE AND BUILDING IT AT THE SAME TIME AS WE'VE SEEN WITH HOUSE BILL 3 AND EVEN BEFORE HOUSE BILL 3.
YOU KNOW, IT'S BASED OFF MANY ASSUMPTIONS HOPING THOSE ASSUMPTIONS MEET AND WE HAVE DONE THAT IN PRIOR YEARS AND PLAN.
I'LL CONTINUE THAT IN FUTURE YEARS.
BUT AS WE GO THROUGH TODAY, WE'RE GOING TO FOCUS ON THE TEXAS ECONOMY BECAUSE THAT DOES IMPACT SCHOOL DISTRICT BUDGETS.
[00:05:01]
THEN WE'LL TALK ABOUT THE EIGHTY SEVENTH LEGISLATIVE SESSION AND HOUSE BILL THREE, AND THEN WE'LL HAVE A QUICK HIGHLIGHT OF WHAT YOU'VE SEEN MANY TIMES.THE 2020-2021 GENERAL FUND, STUDENT NUTRITION SERVICES FUND AND DEBT SERVICE FUND UPDATE.
AND THEN WE WILL OUTLINE THE 21-22 AND PROVIDE SOME MULTI-YEAR PROJECTIONS ALSO FOR THE GENERAL FUND AND COMMENTS AND QUESTIONS AT THE END, BUT HAS MS. GRIFFIN NOTED, AS WE TRANSITION BETWEEN SECTIONS, WE WILL STOP AND PAUSE AND HAVE THOSE COMMENTS AND QUESTIONS TOO.
SO WE'LL START OFF WITH THE TEXAS ECONOMY, AS YOU CAN SEE, GOING FROM 2013 TO 2020.
THERE HAS BEEN RECOVERY IN REGARDS TO THE UNEMPLOYMENT RATE.
WHEN COVID HIT LAST YEAR, THERE WAS A SKYROCKET OF THE UNEMPLOYMENT RATE.
AND AS WE BUILT THAT BUDGET AND THOSE CONCERNS OF THE LONG TERM IMPACT OF COVID AND FUTURE BUDGET CUTS FROM THE STATE, GOOD NEWS.
THE HOUSE AND SENATE COMMITTEES FOR SCHOOL FINANCE HAVE BOTH SAID THEY'RE GOING TO FULLY MAINTAIN HOUSE BILL 3 FUNDING.
AND SO WE'RE GOING TO TALK ABOUT THAT, ALONG WITH THE FEDERAL DOLLARS THAT WE'VE BEEN HEARING IN RELIEF FROM THE FEDS THAT ARE SUPPOSED TO COME TO PUBLIC SCHOOL DISTRICTS IN TEXAS, BECAUSE AS OF RIGHT NOW, JUST A HIGHLIGHT FOR EVERYONE.
WE HAVE NOT RECEIVED ANY ADDITIONAL DOLLARS TO OPERATE OR SUPPORT OUR SCHOOLS THAT HAVE BEEN ALLOCATED BY THE FEDERAL GOVERNMENT.
IN FACT, THE FUNDS WE DID RECEIVE, WHICH WAS ESSER ONE OR CARES FUNDING LAST YEAR, THE STATE CUT US BY THE EXACT DOLLAR AMOUNT WE RECEIVED, WHICH WAS TWELVE AND A HALF MILLION DOLLARS.
SO THERE WAS NO NEW MONEY FOR GARLAND ISD OR ANY PUBLIC SCHOOL DISTRICT IN THE STATE OF TEXAS.
THAT EMPLOYMENT RATE YOU CAN SEE HAS IS RECOVERING ENERGY ACTIVITY.
I DO INCLUDE THIS BECAUSE WHEN YOU LOOK AT DOLLARS PER BARREL, THAT DOES IMPACT THE SCHOOL FUNDING SYSTEM BECAUSE THEY RELY ON THAT MONEY.
WHEN I SAY THEY THE STATE OF TEXAS RELIES ON THAT MONEY TO HELP FUND PUBLIC SCHOOLS, YOU CAN SEE THAT THAT IS ALSO RECOVERING.
IT DID HIT ZERO AND EVEN NEGATIVE EARLIER IN THE YEAR, AS WE DISCUSSED IN PRIOR PRESENTATIONS.
BUT WITH THE ENERGY ACTIVITY, THAT IS GOOD NEWS FOR TEXAS PUBLIC SCHOOL DISTRICTS, FOR THE BIENNIUM AND FUTURE BIENNIUMS. THE OUTLOOK.
AND THIS IS ALSO TO HIGHLIGHT HOW THE ECONOMY HAS RECOVERED FROM THE RETAIL SERVICES AND MANUFACTURING WITH COVID GOING ON AND SINCE IT'S HIT.
AND SO THAT SALES TAX DOES PLAY A HUGE ROLE AND HAS A HUGE IMPACT ON STATE REVENUE.
AND SO I'M NOT GOING TO DISCUSS ANY OF THESE IN DETAIL, BUT JUST TO PROVIDE THAT VISUAL OF HOW THEY HAVE RECOVERED WITH WHAT'S HAPPENING IN THE STATE OF TEXAS AND THE ECONOMY.
NOW, WE'LL GET INTO THE LOCAL ECONOMY WITH DFW BECAUSE THAT IMPACTS OUR LOCAL.
PROJECTIONS AND TAX COLLECTIONS, AND SO YOU CAN SEE THE DFW ANNUAL EMPLOYMENT GROWTH, THERE WAS A HUGE DECLINE, NOT JUST HERE BUT ACROSS THE US AND THE STATE OF TEXAS WHEN COVID HIT IN REGARDS TO THOSE LAYOFFS.
AND THAT IS NOW STARTING TO RECOVER.
AND SO WE ARE BACK TO ABOVE THE 09-10 RECESSION LEVELS.
AND THE OUTLOOK IS THAT WILL CONTINUE TO INCREASE AND GET BETTER WITH WHAT'S HAPPENING IN THE STATE ECONOMY AND THEN WE'LL DIVE FURTHER INTO GISD.
YOU'VE SEEN THIS INFORMATION IN OUR DEMOGRAPHY REPORT FROM BRENT ALEXANDER AND SCHOOL DISTRICT STRATEGIES ABOUT TWO WEEKS AGO.
THIS HAS HAD A HUGE IMPACT ON THE DISTRICT IN REGARDS TO ADA.
WE'VE IN THE TRANSITION WHAT WILL COVER ON NEXT SLIDE.
BUT WITH COVID AND ACROSS THE STATE OF TEXAS, THERE WAS A THREE PERCENT DECLINE IN ENROLLMENT ACROSS THE STATE, ABOUT ONE HUNDRED FIFTY SIX THOUSAND STUDENTS.
AND THAT'S UNIQUE NOT OR NOT UNIQUE TO GARLAND ISD.
WE'RE RIGHT AROUND A THREE PERCENT DECLINE IN ENROLLMENT ALSO.
SO WE'RE RIGHT IN LINE WITH HAPPENING IN THE STATE OF TEXAS.
BUT IN REGARDS TO THESE HOME SALES, YOU CAN SEE THROUGH THE YEARS THE ANNUAL RESALES AND HOW THE MEDIAN HOME PRICE HAS INCREASED.
AND JUST TO REITERATE AGAIN, ALTHOUGH WE MAY PAY MORE IN TAXES YEAR AFTER YEAR, THE STATE CUTS US FOR THAT SAME DOLLAR AMOUNT.
SO, FOR EXAMPLE, MYSELF, I PAY A HUNDRED DOLLARS MORE IN PROPERTY TAXES.
THE STATE IS GOING TO CUT THE DISTRICT ONE HUNDRED DOLLARS MORE.
AND SO WE STATE NET ZERO TO GET TO TARGET REVENUE FOR OUR STUDENTS.
SO THAT IS KEY AND CRITICAL TO TEXAS SCHOOL FUNDING, BECAUSE THE PERCEPTION IS, IS WE PAY MORE IN TAXES, WE GET MORE MONEY TO OPERATE WITH.
THAN QUARTERLY NEW HOME CONSTRUCTION.
IT'S THE LARGEST IT'S BEEN SINCE THE RECESSION LEVELS IN 2008.
YOU CAN SEE IN 2020 THE HIGHLIGHTED NUMBERS IN THE FOURTH QUARTER BEING YELLOW.
YOU'VE SEEN THIS BEFORE WITH DEMOGRAPHER, BUT IT'S THE MOST STARTS IN A SINGLE QUARTER IN MORE THAN 10 YEARS.
AND THAT IS HUGE BECAUSE THE MORE HOME STARTS WE HAVE AND THE MORE MULTIFAMILY UNITS COMING IN, IT DOES GENERATE ADDITIONAL STUDENTS, WHICH IS ALSO HELP OFFSET ORADEA LOSS, WHICH WE'LL TALK ABOUT NEXT.
AND WE'LL TALK ABOUT THE ADA LOSS COMING UP IN THE 2021 INFORMATION, BUT BEFORE WE
[00:10:04]
GET INTO HOUSE BILL THREE AND THAT SECTION, ARE THERE ANY COMMENTS OR QUESTIONS IN REGARDS TO THE STATE ECONOMY, THE DFW ECONOMY, OR GARLAND ISD HOME SALES AND STARTS? JUST A QUICK QUESTION.YOU TALKED ABOUT THAT WE DIDN'T RECEIVE ANY NEW MONEY THAT WAS ALLOCATED FOR US.
WHEN WAS THAT PLAN TO BE? WHEN IT SHOULD HAVE THAT BEEN RECEIVED IF WE WERE GOING TO GET IT IN REGARDS TO INCREASED PROPERTY VALUES WELL YOU TALKED ABOUT YOU WERE TALKING EARLIER.
I DON'T REMEMBER WHICH SIDE YOU'RE REFERRING TO, BUT YOU SAID THAT WE HAVEN'T RECEIVED ANY NEW MONEY THAT WAS ALLOCATED BY THE STATE.
AND SO WE ARE THERE WAS AN APPROPRIATIONS ACT PASSED BY THE FEDS IN DECEMBER AND ANOTHER ONE RECENTLY, GARLAND ISD.
IF THEY WOULD GIVE US THOSE DOLLARS FOR BOTH OF THOSE RELIEF, IT WOULD BE ABOUT ONE HUNDRED AND SEVENTY MILLION DOLLARS FOR GARLAND ISD BASED OFF.
AND THAT'S JUST AN ASSUMPTION.
BUT IF THEY FOLLOW THE SAME FORMULA THEY DID FOR CARES ACT ESSER ONE THIS PAST SUMMER, WE WOULD BE DO THAT AMOUNT OF MONEY.
HOWEVER, AS WE'VE SEEN HISTORICALLY, NOT JUST WITH THE IMPACT OF COVID WHEN THE RECESSION HIT, EVERY FEDERAL RELIEF DOLLAR THAT WAS ALLOCATED FOR PUBLIC SCHOOL DISTRICTS IN TEXAS WAS CUT FROM THE STATE FUNDING FORMULAS.
THERE WAS NO NEW MONEY FOR PUBLIC SCHOOLS AND HAD A MEETING TODAY, HAD A TRAINING THIS MORNING IN REGENT 10 FOR OUR FEDERAL REVENUES AND REVENUE FORMULA FUNDING.
WE DON'T KNOW IF THERE'S GOING TO BE ADDITIONAL DOLLARS WITH THE STATE LEGISLATURE GOING ON.
WE DO KNOW THERE'S A LOT OF DISCUSSIONS IN AUSTIN ABOUT THOSE DOLLARS.
AND WE MY BELIEF IS, FOR EXAMPLE, WITH THE ADA LOSS, THE STATE IS GOING TO ALLOCATE THE FEDERAL DOLLARS IN PLACE OF THE STATE DOLLARS AND CUT DISTRICTS BY WHAT WE SHOULD HAVE BEEN RECEIVING IN ADA.
AND THEN THEY WILL GO ABOVE AND BEYOND THAT, IN MY BELIEF, BASED OFF EXPERIENCE, BECAUSE IN EVERY FEDERAL RELIEF ACT, THERE HAS NOT BEEN ADDITIONAL DOLLARS ALLOCATED FOR TEXAS PUBLIC SCHOOL DISTRICTS.
THE FEDS SAY THESE ARE FOR SCHOOL DISTRICTS, BUT THEN THE STATE IN TURN CUTS US BY THAT SAME AMOUNT.
BUT, DR. RINGO, THAT THAT DOES NOT HAPPEN IN EVERY STATE? THAT IS CORRECT.
WHAT WE DO IN TEXAS WITH THE MONEY THAT'S EARMARKED FOR INDIVIDUAL SCHOOL DISTRICTS.
DO YOU KNOW? NOT YET, NO, MA'AM.
THE STATE HAS NOT GIVING US ANY DIRECTION OR EVEN TOLD US WHAT WE'RE GOING TO RECEIVE YET THAT WE KNOW WE DON'T RECEIVE THAT'S BEEN ALLOCATED TO US.
IS THAT GOING INTO THE STATE BUDGET? THE STATE HAS THOSE FUNDS NOW TO DECIDE HOW TO DISTRIBUTE TO TEXAS PUBLIC SCHOOL DISTRICTS.
AND SO MRS. GRIFFIN MADE A GREAT POINT.
OTHER STATES IN THE US HAVE RECEIVED ADDITIONAL DOLLARS TO SUPPORT THEIR PROGRAMS AND THEIR STUDENTS THROUGH COVID AND REMEDIATION AND GETTING THEM UP TO PAR WHERE THEY NEED TO BE AND ALSO TO PURCHASE PPE AND PLEXIGLASS.
THE STATE OF TEXAS HAS TAKEN A DIFFERENT PATH.
WE HAVE NOT RECEIVED ANY ADDITIONAL DOLLARS TO SUPPORT OUR PROGRAMS TO BUY PPE AND WE HAVE NO IDEA YET IF THAT'S GOING TO HAPPEN.
RINGO, ALONG THAT LINE WITH THE STATE FUNDING KIND OF THE SEESAW EFFECT, WHERE IF WE INCREASE FUNDING ON ONE SIDE, IT GETS REDUCED ON THE OTHER SIDE.
TYPICALLY WITH RESPECT TO THAT, THERE'S BEEN SOME DISCUSSION AT MANY LEVELS ABOUT SCHOOL DISTRICTS HAVING IN TEXAS HAVING WHAT, 10, 11 BILLION DOLLARS OF RESERVES AND THE POTENTIAL OF ASKING DISTRICTS TO WORK THROUGH THOSE EXCESS RESERVES PRIOR TO ANY ADDITIONAL STATE FUNDING.
HAVE YOU HEARD ANY MORE ABOUT THAT OR HAVE ANY OF THOSE ARE THERE ANY BILLS PENDING THAT THE LEGISLATURE AND IF THAT'S ANOTHER SECTION IN THE REPORT, IT CAN WAIT.
GREAT COMMENT AND THAT WILL ACTUALLY LEAD RIGHT INTO OUR NEXT SECTION.
SO BEFORE I GO INTO THE NEXT SECTION, THOUGH, I CAN START THAT PROCESS.
NOW, THERE ARE BILLS AND THEN SOMEBODY WHO WAS A BIG PROPONENT AND DRIVER OF HOUSE BILL THREE, WHICH DID ADD A LOT OF NEW MONEY.
HE'S WITH THE HOUSE, DAN HUBERTY, AND HE'S OUT OF THE KINGWOOD HUMBLE AREA.
BUT HE WAS CHAIR OF THE SCHOOL FINANCE COMMITTEE IN THE PRIOR BIENNIUM AND HELPED LEAD THE EFFORTS TO INCREASE SCHOOL FUNDING.
AND SO WE'LL WHICH WE'LL TO TALK ABOUT HOUSE BILL 3 SHORTLY.
BUT THERE ARE BILLS PROPOSED IN BOTH THE HOUSE AND SENATE FOR DISTRICTS TO ADDRESS THE FUND BALANCE.
AND I DON'T USE THE WORD ISSUE BECAUSE IN MY OPINION, IT IS NOT AN ISSUE.
DISTRICTS ARE REQUIRED TO HAVE A MINIMUM OF THREE MONTHS, NOT A MAXIMUM, AT LEAST A MINIMUM OF THREE MONTHS IN FUND BALANCE TO SUPPORT OPERATIONS IF SOMETHING CRAZY WERE TO HAPPEN IN THE ECONOMY OR THE WORLD.
AND SO WHEN YOU ACCOUNT FOR THAT, THAT SINGLE REQUIREMENT ALONE IS GOING TO HAVE SCHOOL DISTRICTS HAVE A LARGER FUND BALANCE WHEN ACCUMULATED THAN THE STATE RAINY DAY
[00:15:03]
FUND.AND SO THE COMMENT IS WHEN THE SCHOOL DISTRICTS HAVE MORE MONEY THAN THE STATE RAINY DAY FUND AND FUND BALANCE, THAT IS CORRECT.
AND IT'S ALSO A REQUIREMENT BY STATE LAW.
AND SO DISTRICTS NEVER WANT TO BE AT A THREE MONTH MINIMUM FUND BALANCE BECAUSE WHEN THAT HAPPENS.
ESPECIALLY AGING DISTRICTS, WHEN THERE'S NOT A BOND PROGRAM IN PLACE AND A CATASTROPHIC EVENT HAPPENS.
FOR EXAMPLE, LET'S SAY A TORNADO OR HAIL EVENT WERE TO HAPPEN, WE AS A DISTRICT WOULD BE ON THE HOOK FOR TWO AND HALF MILLION DOLLARS IMMEDIATELY.
PLUS, I BELIEVE IT'S A ONE PERCENT PER SITE DEDUCTIBLE ON TOP OF THAT.
AND SO OR IF A CHILLER WERE TO GO OUT, YOU'RE GOING TO GO IMMEDIATELY TO FUND BALANCE WITH ALL OF A SUDDEN YOU'RE GETTING YOU COULD GET FAIRLY CLOSE TO HAVING ONE OR TWO MONTHS.
AND IF YOU GET, YOU KNOW, WITHIN A MONTH, DEPENDING ON THE SIZE OF THE DISTRICT, YOU HAVE TO TAKE OUT A BANK LOAN TO MAKE PAYROLL, WHICH WE HAVE SEEN IN SURROUNDING REGION 10 DISTRICT.
AND SO, YOU KNOW, DISTRICTS IN MY OPINION, LIKE TO HAVE FOUR TO FIVE MONTHS, ESPECIALLY IN DISTRICTS THAT CLOSER TO A FIVE MONTH MARK IS GREAT.
AND SO WHEN YOU ACCOUNT FOR THAT AND I WILL USE DALLAS ISD, FORT WORTH ISD AND GARLAND ISD, OUR FUND BALANCES COMBINED WOULD MAKE UP 16 PERCENT OF THE TEXAS RAINY DAY FUND.
THERE'S A THOUSAND MORE SCHOOL DISTRICTS TO ADD TO THAT.
AND SO WE SHOULD HAVE MORE THAN THE RAINY DAY FUND WHEN WE COMBINE ALL OUR FUND BALANCES.
BUT THERE ARE BILLS OUT THERE THAT STATE THEY WANT US TO GET TO EXACTLY THREE MONTHS.
AND THERE'S MANY DISCUSSIONS GOING ON ABOUT HOW THAT WOULD HAPPEN, WHETHER THAT WE WOULD BE REQUIRE A LOWER TAX RATE TO A CERTAIN AMOUNT FROM ONE YEAR THAT WOULD EAT UP THAT FUND BALANCE TO GET US TO THREE MONTHS OR DO IT OVER A FIVE YEAR PLAN.
BUT THERE ARE STILL BEING DISCUSSED OR HEAVILY.
THERE'S NO WAY TO SAY HOW THAT MIGHT LOOK AT THIS TIME.
AND THAT DOES LEAD RIGHT INTO THE NEXT SECTION, IF THERE'S ANY MORE COMMENTS OR QUESTIONS, I'LL BE HAPPY TO ANSWER THOSE BEFORE WE PROCEED.
SO HOUSE BILL THREE UPDATE AND THE EIGHTY SEVENTH LEGISLATIVE SESSION OF WHAT'S HAPPENING DOWN THERE.
SO HOUSE BILL THREE, THIS WAS PASSED IN 2019.
IT DID GENERATE AN ADDITIONAL APPLES TO APPLES FOR GARLAND ISD, ROUGHLY 21 TO 22 MILLION DOLLARS.
SO THAT IS TWENTY ONE AND A HALF MILLION DOLLARS.
THAT WAS NEW TO OUR DISTRICT, WHICH IS GREAT.
WE COMMITTED QUITE A BIT OF THAT FOR OUR PAY RAISES AND POSITIONS.
AND AS YOU CAN SEE, WHEN WE SHOW YOU THE LINE ITEM DETAIL ADD, WE ADDED MORE TO OUR BUDGET THAN WAS ALLOCATED TO US IN HOUSE BILL THREE.
IT DID PROVIDE PROPERTY TAX RELIEF.
SO AS YOU CAN SEE, OUR TAX RATE DECREASED TO POINT NINE FIVE ONE THREE VERSUS THE NINETY SEVEN CENTS LAST YEAR AND 1.04 THE YEAR BEFORE.
IT PROVIDES A TAX RATE CAP FOR SCHOOL DISTRICTS WITH THE GOLD AND COPPER PENNIES.
THERE ARE TRE RESTRICTIONS THAT NOW THAT THOSE ONLY CAN BE DONE IN NOVEMBER VERSUS ANY TIME A SCHOOL DISTRICT BOARD WERE TO CALL FOR IT, IT PROVIDES ADDITIONAL TEACHER COMPENSATION, WHICH WITHIN THAT TEACHER CATEGORY, IT'S NOT JUST OUR TEACHERS, BUT IT'S OUR LIBRARIANS, TEACHERS AND SOME OTHER COUNSELORS WHEN THE BASIC ALLOTMENT INCREASES.
SO ONLY IF THE BASIC ALLOTMENT INCREASES ARE ADDITIONAL SALARIES REQUIRED TO INCREASE UNDER THIS LAW.
IT DID INCREASE FUNDING FOR PUBLIC EDUCATION, ADDING SOME FUNDING ALLOTMENTS AND REPEALED OTHER ALLOTMENTS.
CCMR WAS NEW, COLLEGE AND CAREER MILITARY READINESS AND WE HAD A LOT OF EXPERIENCE AND DISCUSSION WITH THAT.
IF YOU CAN RECALL, 19-20 FUNDING FOR CCMR WAS NOT FINALIZED TILL NOVEMBER OF 2020.
SO WE WERE OUR FISCAL YEAR ENDED IN JUNE.
SO THAT'S JULY, AUGUST, SEPTEMBER, OCTOBER, NOVEMBER.
FIVE MONTHS AFTER THE FISCAL YEAR, THEY TOLD US WE'RE GOING TO GET THE LAST FISCAL YEAR.
AND FOR THIS CURRENT FISCAL YEAR, WE ONLY HAVE A FEW MONTHS LEFT.
AND THEY JUST NOW TOLD US WHAT WE'RE GOING TO GET THIS FISCAL YEAR, WHICH IS ALSO RIGHT ALIGNMENT WITH OUR PROJECTIONS, ABOUT THREE MILLION DOLLARS.
AND SO WE HAVE THAT ALREADY PROJECTED OUR REVENUE BUDGET.
BUT WE WERE ALSO TOLD THEY COULD CHANGE THAT BEFORE THE END OF THE FISCAL YEAR.
BUT THAT'S THE QUICKEST THEY'VE GOTTEN THAT INFORMATION TO US AT THIS POINT.
TRE, WE'VE HEARD AND AS YOU SAW WITH THE TRE IT DOES ALWAYS SOUND LIKE A TAX RATE INCREASE.
IT'S A VERY SPECIFIC LANGUAGE.
DISTRICTS DO NOT HAVE ANY CHOICE TO ALTER THAT LANGUAGE.
BOND PROGRAMS ALSO WITH THAT ON A BOND PROGRAM, ANY DISTRICT HAS A BOND PROGRAM.
EVEN IF THEY'RE LOWERING THE TAX RATE WITH A NEW BOND PROGRAM, IT REQUIRES IT TO STATE THIS IS A PROPERTY TAX INCREASE AND ALSO SEPARATE PROPOSITIONS FOR AN AUDITORIUM'S.
STADIUMS, ARENAS, THAT TYPE OF INITIATIVE IN THE SCHOOL DISTRICT.
THE POSITIVE THAT DID COME OUT OF HOUSE BILL 3-2 WAS THE CURRENT YEAR VALUES AND FUNDING FORMULAS AND NO LAG.
WHAT DOES THAT MEAN IF YOU RECALL PRIOR TO HOUSE BILL 3, IF WE HAD 10 PERCENT TAB GROWTH ONE YEAR AND DROP DOWN TO FIVE PERCENT THE NEXT YEAR ARE IMMEDIATELY GOING TO BE CUT IN FUNDING.
[00:20:01]
NOW, WITH THE CURRENT, YEAR VALUES WERE HELD WHOLE, REGARDLESS OF HOW HIGH OR LOW OUR PROPERTY VALUES GROW OR DECLINE.AND THEN ALSO INCREASED YOUR CONTRIBUTIONS FOR SCHOOL DISTRICTS.
LOPEZ A QUESTION AT THIS TIME? DR. LOPEZ, WOULD YOU EXPLAIN? WHY HOUSE BILL THREE IS BEING CONSIDERED THE EQUITY FINANCIAL BILL THAT CAME FROM THE HOUSE IN THE SENATE AS IT RELATES TO HOW THEY INDICATE IT WOULD CLOSE THE ACHIEVEMENT GAP AND ALL OF THE WEIGHTED ALLOTMENT.
AND IN THE STATES MIND, THIS HOUSE BILL THREE IS THE FIRST TIME THAT THEY HAVE ATTEMPTED TO EQUATE EQUITY TO ALLOCATION OF FUNDS.
HOUSE BILL 3'S INNOVATION REALLY STARTED WITH THE DIFFERENT TYPE OF ALLOTMENTS THAT THEY THEY GAVE FOR DIFFERENT GROUPS.
SO, FOR INSTANCE, EARLY LITERACY, WE ALL KNOW THAT IF WE'RE GOING TO BE ABLE TO FUND EARLY LITERACY, THEY PUT SPECIAL MEASURES IN THAT WE COULD GAIN EXTRA FUNDING OUTSIDE OF THE BASIC ALLOTMENT SO WE COULD USE THAT MONEY TO REINVEST IN EARLY LITERACY.
THERE WAS A SECOND MEASURE THAT THEY INSTITUTED THAT WAS VERY UNIQUE WAS CCMR THE CCMR, COLLEGE CAREER MILITARY READINESS.
THE MORE KIDS THAT WE GET COLLEGE MILITARY READY AND ON THE PATH TO, THEY HAVE THE STRINGENT PROCESS.
AND YOU HAVE TO OVER A CERTAIN THRESHOLD, YOU RECEIVE EXTRA MONEY.
FOR THAT MATTER OF FACT, WE JUST GOT THE FINAL NUMBERS FROM THE NUMBER THAT WE'RE GOING TO SEE FROM OUR EFFORTS ON CCMR. THE TIA.
THE TIA IS HUGE, IT'S AN INVESTMENT IN THE NEEDIEST COMMUNITIES, BECAUSE WHAT IT DOES IS IT'S A TEACHER INCENTIVE ALLOTMENT, MUCH LIKE THE INNOVATION THAT WE SAW IN DALLAS.
SO WHAT THEY DO IS THEY'RE GOING TO GIVE TEACHERS MONEY FOR THOSE THAT ARE HAVING HIGH ACADEMIC SUCCESS WITH OUR NEEDIEST STUDENTS.
THOSE ARE THE STUDENTS THAT ARE ECONOMICALLY DISADVANTAGED.
AND IT'S ACTUALLY DESIGNATED IF YOU GO IF YOU GO LOOK AT IT, THEY'RE USING CENSUS DATA TO SAY THESE ARE THE HIGHEST POVERTY NEED AREAS AND THEY HAVE THEM CATEGORIZED.
AND SO IF YOU WORK THERE AND YOU GET SUCCESS, YOU GET INCENTIVIZED FOR YOUR SUCCESS.
SO THOSE ARE JUST THREE WAYS THAT YOU COULD START LOOKING AT THE INNOVATIONS OF HOUSE BILL.
THREE, THE THE BEAUTY IN IT IS THAT IT'S FOR THOSE SCHOOL DISTRICTS THAT NEED IT THE MOST.
SO IF YOU ARE NOT A HIGH POVERTY SCHOOL DISTRICT, WHICH WE ARE SURROUNDED BY AND GARLAND, YOU'RE NOT GOING TO HAVE ACCESS TO THAT TIA MONEY LIKE WE WOULD HERE.
WE'RE AT 65 PERCENT ECONOMICALLY DISADVANTAGED.
YOU COULD GO DOWN THE STREET TO A SCHOOL DISTRICT THAT'S 12 PERCENT.
SO THOSE TYPE OF INCENTIVES ON THE ALLOTMENTS ARE WHAT'S GIVING US AN ADDED, I WOULD JUST SAY LEG UP ON THE COMPETITION.
AND THE BEAUTY OF IT IS IT'S OPTIONAL.
SO OUR DISTRICT HAS OPTED IN ON IT AND WE SHOULD BE ABLE TO CASH IN ON THOSE EQUITY PROJECTS AS SOON AS AS SOON AS THE MONEY'S AVAILABLE.
HE JUST MENTIONED THE TIA EXTRA FUNDING IS THAT PART OF THE 21 MILLION IN NEW FUNDING THAT GISD RECEIVED OR IS THAT SEPARATE.
THAT WILL BE SEPARATE AND WE HAVE NOT SEEN THOSE DOLLARS.
THAT'S A GREAT QUESTION ON THE TEACHER INCENTIVE ALLOTMENT.
I THINK WE MAYBE HAVE HAD ONE TEACHER THIS YEAR THAT QUALIFIED IN HR THAT WAS IN THE BUDGET.
BUT THAT'S A FLOWTHROUGH FROM THE DISTRICT, THE STATE ALLOCATES THOSE DOLLARS THAT COMES THROUGH NEXT YEAR OUR HUMAN RESOURCES DEPARTMENT FROM INFORMATION RECEIVED FROM THE STATE WILL TELL THE BUDGET TEAM AND US WHAT TO BUILD IN THE BUDGET FOR TIA, AND THAT IS CURRENTLY NOT SEEN.
AND THAT IS NOTED IN OUR ASSUMPTIONS FOR NEXT YEAR'S BUDGET AT THIS TIME.
AND TO HIGHLIGHT THE BALLOT LANGUAGE CHANGES, A COMMENT RECEIPT.
AND JUST FOR EVERYBODY IN THE PUBLIC [INAUDIBLE] WHY DID THE LANGUAGE CHANGE? WELL, WHEN YOU LOOK AT TRES AND BOND PROGRAMS, THE SUCCESS RATE IN HISTORICAL YEARS WAS A ROUGHLY 80 PERCENT AND THE SUCCESS RATE WAS FAIRLY HIGH WHEN A BOND OR TRE PASSES, ESPECIALLY FOR A TRE AND IN SOME DISTRICTS A BOND PROGRAM, IT COST THE STATE ADDITIONAL DOLLARS.
THE WAY TO SLOW THAT DOWN IS TO CHANGE THE BOND LANGUAGE.
SO REGARDLESS IF THE DISTRICTS EVEN MAINTAIN THE SAME TAX RATE OR LOWERING THE TAX RATE, THE WAY THE LANGUAGE READS, IT SOUNDS IT MAKES IT COME ACROSS AS A TAX RATE INCREASE, EVEN IF A DISTRICT MAINTAINING THE RATE OR LOWERING THE OVERALL RATE AND SO CHANGING THAT LANGUAGE WITH ITS INTENDED PURPOSE, IT HAD ITS IMPACT AS IT WAS SUPPOSED TO.
SO IN NOVEMBER, WITH THE VERY NEW LANGUAGE TO THE FIRST TIME BEING USED, ROUGHLY ONLY 40 PERCENT OF THE TREES PASSED IN THE STATE AND A LITTLE OVER 50 PERCENT OF THE BOND PROGRAMS PASSED.
THAT'S A 30 TO 40 PERCENT DECLINE IN THE APPROVALS OF TRES AND BONDS IN THE STATE OF TEXAS IMMEDIATELY JUST DUE TO BALLOT LANGUAGE CHANGES.
[00:25:02]
WHAT WAS THE ORIGINAL PERCENTAGE? ROUGHLY IT DEPENDING ON THE CYCLE, BUT IT WAS ALWAYS 70 TO 80 PERCENT WOULD PASS ACROSS THE STATE OF TEXAS WITH EVERY BOND OR TRE CYCLE AND WITH THE NEW LANGUAGE INTENTIONALLY SLOW THAT DOWN, IT DROPPED TO 40 TO 50 PERCENT.HOUSE BILL THREE, EVEN THOUGH WE'RE IN OUR SECOND YEAR, FUNDING DETERMINATIONS ARE STILL BEING MADE.
WE'RE ON OUR NINTH FUNDING TEMPLATE FOR THIS FISCAL YEAR.
WE WERE JUST TOLD RIGHT BEFORE SPRING BREAK WHAT OUR CCMR NUMBERS WOULD BE FOR THIS FISCAL YEAR.
WE'RE STILL WAITING ON WHAT OUR ADA, THE AVERAGE DAILY ATTENDANCE HOLD HARMLESS IS GOING TO BE FOR THE SECOND SEMESTER.
AND THAT IS WE WEREN'T SURE UNTIL RIGHT BEFORE SPRING BREAK IF THAT WAS GOING TO BE EXTENDED DUE TO THE ENROLLMENT DECLINE ACROSS THE STATE.
AND THEN WE WERE TOLD IT WILL BE EXTENDED FOR THE SECOND SEMESTER.
AND SO EVERY DISTRICT IN THE STATE OF TEXAS IS STILL WAITING ON WHAT THAT NUMBER IS GOING TO BE THAT WE'RE GOING TO PLUG INTO OUR FUNDING TEMPLATES FOR THE ADA HOLD HARMLESS.
SO THEY'RE STILL GOING TO BE FLUCTUATIONS FOR THE 2021 FISCAL YEAR AS WE APPROACH JUNE AND AS WE KNOW, INFORMATION WE WILL SHARE WITH THE BOARD OF TRUSTEES, AS WE ALWAYS HAVE FOR TRANSPARENCY IN OUR COMMUNITY AND BRING THAT BACK.
I'LL PUT THAT GRAPHIC UP HERE.
AS YOU CAN SEE, THERE'S BEEN 9 FUNDING TEMPLATES AND SOMETIMES THE TEMPLATES, THERE'S ALSO ERRORS.
BUT, YOU KNOW, INSTEAD OF BUDGETING STRATEGY, THIS IS SOME COMIC RELIEF TO THE SERIOUSNESS OF TEXAS SCHOOL FINANCE.
BUT IT'S IT'S BEEN AN INTERESTING PROCESS FOR SCHOOL DISTRICTS ACROSS THE STATE OF TEXAS.
WITHIN THE SESSION, THERE ARE TOP THEMES EMERGING, THE STATE BUDGET, REDISTRICTING AND COVID.
WITH COVID GOING TO NEXT YEAR, WE HAVE NO IDEA HOW THE FEDERAL RELIEF DOLLARS WILL BE ALLOCATED TO US OR HOW WE'LL BE ABLE TO USE THOSE YET AT THIS POINT.
YOU CAN SEE THE NUMBER OF BILLS THAT WERE FILED AS OF FEBRUARY.
OUR BOARD DOCS ARE DUE BY THE END OF FEBRUARY.
AND SO THAT IS WHY THAT IS THE MOST UP TO DATE INFORMATION WE HAD AT THE TIME OF THIS PRESENTATION.
AND TASBO WHICH IS THE TEXAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS, IS TRACING 483 FOR SCHOOL BUSINESS PURPOSES AND ROUGHLY 10 TO 12 PERCENT OF ALL BILLS FILED GET PASSED.
AND OF THOSE THAT DO GET PASSED, LANGUAGE OFTEN CHANGES AS IT PROGRESSES.
I'VE ALREAD NOTED ABOUT THE ADA HOLD HARMLESS BEING EXTENDED.
BUT WE DO NOT KNOW WHAT THAT NUMBER IS AT THIS POINT.
WE'RE STILL WAITING ON AN ANNOUNCEMENT FROM TODAY ON THE IMPACT OF ANY ADDITIONAL FEDERAL FUNDING.
THE SUSPICION IS WE MAY NOT BE TOLD THIS UNTIL THE END OF THE SESSION BECAUSE THE STATE REPS ARE GOING TO LOOK OUT FOR THE STATE BUDGET FIRST AND THEN DISTRICTS WILL COME NEXT.
AS WE'VE SEEN WITH HISTORICAL, AS I'VE NOTED EARLIER, WHEN AS THE FEDERAL SHARE INCREASES, WHAT THAT MEANS IS RELIEF DOLLARS HAS RELIEF DOLLARS INCREASED.
THE STATE HAS DECREASED ITS SHARE.
HAS IN LOCAL PROPERTY TAXES, HAS OUR LOCAL PROPERTY TAXES INCREASE, THE STATE DECREASES THAT SHARE.
WE HAVE YET TO SEE ANY NEW MONEY BESIDES HOUSE BILBERRY AND PREHOSPITAL THREE.
THIS WAS THE SAME MODEL FOLLOWED BY THE STATE.
KEY POINTS ON FUNDING, THERE ARE ONLY TWO WAYS DISTRICTS GENERATE REVENUE.
THAT IS OUR AVERAGE DAILY ATTENDANCE, NOT ENROLLMENT.
SO IF OUR AVERAGE DAILY ATTENDANCE INCREASES, WE SEE ADDITIONAL DOLLARS.
IF OUR AVERAGE DAILY ATTENDANCE DECREASES.
WE DO NOT SEE WE ACTUALLY LOSE MONEY.
AND SO THAT'S WHERE THE IMPACT OF COVID DISTRICTS AND WHY THE ADA HOLD HOMELESS HAS BEEN CRITICAL.
THERE'S BEEN A THREE PERCENT DECLINE ACROSS THE STATE OF TEXAS THAT HAS A HUGE IMPACT ON DISTRICT BUDGETS.
WHEN THOSE PROJECTIONS ARE MADE AND THOSE NUMBERS DO NOT MEET THE OTHER DRIVER IS THE IMMINENT TAX RATE, THE HIGHER M&O TAX RATE THAT GUARANTEES MORE FUNDING PER PENNY OF TAX EFFORT.
WHAT DOES THAT MEAN? THERE ARE GOLDEN AND COPPER PENNIES.
THAT'S HOW IT'S REFERENCED IN LAW.
SO IF DISTRICTS WERE TO GO TO VOTERS AND SEEK THOSE PENNIES, IT GENERATES ADDITIONAL DOLLARS FOR SCHOOL DISTRICTS.
AND WITH THIS, I'M GOING TO TRANSITION OVER TO BEFORE WE TRANSITION TO 2021, ANY COMMENTS OR QUESTIONS? AND WITH THAT, I'LL TURN IT OVER TO MS. MAYO TO HIGHLIGHT THE 2021 GENERAL FUNDS AND NUTRITION FUND AND DEBT SERVICE FUND BUDGETS.
ACTUALLY, I DID HAVE A QUESTION ON PAGE 13.
YOU TALKED ABOUT THAT ADA HOLD HARMLESS HAS BEEN EXTENDED.
AND IN THAT, TEA WILL DIRECT THE DISTRICTS ON WHAT ADA NUMBER TO USE IF IT'S BEEN EXTENDED.
WHY WOULD IT CHANGE? WHY SHOULD WE EXPECT FLUCTUATIONS TO CHANGE FOR THE 2021 SCHOOL YEAR? GREAT QUESTION.
SO OUR ADA IS LOWER THAN WHAT WAS PROJECTED BECAUSE OF WE HAVE A SLIDE
[00:30:02]
AND I'LL GO TO I'LL COME BACK TO THAT INFORMATION.SO ADA, THE GREEN BAR IS WHERE OUR ADA WAS TRENDING IN THE FIRST SEMESTER.
AND SO YOU CAN SEE WHEN TEA SAID, WELL, THAT'S FAR LOWER THAN IT SHOULD HAVE BEEN, NOT JUST DUE TO OUR DISTRICT BUT ACROSS THE STATE.
THEY TOLD US THEY'RE GOING TO GIVE US HOLD HARMLESS IN THE FIRST SEMESTER.
WELL, THAT GAVE US A HIGHER AVERAGE DAILY ATTENDANCE BASED OFF OUR TRUE HISTORICAL ATTENDANCE OF WHAT THAT PROJECTION SHOULD HAVE BEEN.
AND SO IN THE SECOND SEMESTER, IF THEY WEREN'T TO GIVE US THAT HOLD HARMLESS, YOU COULD SEE WHERE OUR GREEN LINE WAS TRENDING, WHICH IS GOING TO BE WELL BELOW WHAT IT SHOULD HAVE BEEN WITHOUT COVID.
AND SO UNTIL TEA TELLS US WHAT NUMBER TO PLUG IN THERE, OUR ADA IS ACTUALLY GOING TO BE LOWER FOR THE THIRD, FOURTH AND FOR THE FOURTH, FIFTH AND SIXTH SIX WEEKS ATTENDANCE PERIODS THAT WE REPORT ON ATTENDANCE.
AND SO IF WE IF THEY WERE NOT TO GIVE US A HOLD HARMLESS IN THE SECOND SEMESTER OUR ADA THAT WE'D ACTUALLY USE TO PLUG IN WILL BRING DOWN THE AVERAGE AND HURT OUR FINANCIALS.
AND NOW THAT THEY'VE EXTENDED THAT, THEY'RE COMING UP WITH A FORMULA ON THEIR END TO TELL DISTRICTS WHAT YOUR ADA IS GOING TO BE IN THE SECOND SEMESTER.
IT WILL BRING US UP, BUT WE DON'T KNOW WHAT THAT'S GOING TO BRING US UP TO YET.
SO I THINK WHEN WE APPLIED FOR TIA WE WERE LIKE THE THIRD COHORT.
IF I REMEMBER, WE WEREN'T THE FIRST.
ARE THOSE DOLLARS STARTING TO BE REFLECTED YET IN STATE BUDGETS? I DON'T THINK SO.
NOW THE STATE HAS IT IN THEIR BUDGET SIDE IN THEIR PROJECTIONS.
BUT AS FAR AS OUR DISTRICT BUDGETS GO AND THE COHORT WE'RE IN.
SO MY THOUGHT HAS BEEN AS AND LAST NUMBERS I HEARD WAS ALMOST ALL THE DISTRICTS ARE TRYING TO DO A TIA FOR REASONS THAT DR.
LOPEZ POINTED OUT JUST RECENTLY.
THOSE NUMBERS COULD GET SIGNIFICANT WHEN WE'RE TALKING ABOUT POTENTIAL INCREASES FOR TEACHERS GETTING INTO THE SIX FIGURES.
IN THE IN THE IN THE IN THE SCHOOLS.
AND THE MOST SIGNIFICANT AND THE TOP CREDENTIALS, THOSE TEACHERS POTENTIALLY GETTING TO SIX FIGURES IF AS MANY DISTRICTS AS I'VE HEARD APPLY.
ARE YOU HEARING ANYTHING ABOUT THE FACT THAT I DON'T THINK IT IS THAT I HAVEN'T READ ANY BILLS THIS YEAR THAT WOULD SAY WE'RE NOT GOING TO CONTINUE IT, BUT WHAT ARE YOU HEARING FOR THE FUTURE? THERE'S BEEN A LOT OF DISCUSSION TAKING PLACE AROUND HERE AND THERE COULD BE MULTIPLE SCENARIOS THAT PLAY OUT.
ONE IS THEY CUT IT OFF BASED ON THE ORDER OF APPLICATIONS RECEIVED SO THEY CAN ALLOCATE THE DOLLARS OUT ON THE INTENT OF TIA.
ANOTHER MODEL IS IT COULD BE SIMILAR TO WHAT THE NEW INSTRUCTIONAL FACILITIES ALLOTMENT WAS WHEN A DISTRICT BUILT A BRAND NEW FACILITY UNDER THE LAW IT SAID THOSE DISTRICTS WILL GET ONE THOUSAND DOLLARS PER ADA AT THAT CAMPUS FOR TWO YEARS.
AND SO A LOT OF DISTRICTS WERE BUILDING FACILITIES BECAUSE OF THE GROWTH IN STATE OF TEXAS.
WELL, BECAUSE SOME DISTRICTS APPLIED FOR THE NIFA IS WHAT IT STANDS FOR, THE NEW INSTRUCTIONAL FACILITIES ALLOTMENT.
THEY REDUCE THAT ALLOTMENT ABOUT 225 DOLLARS PER ADA AT A NEW CAMPUS.
AND SO THAT COULD BE THE MODEL THAT THEY LET ALL DISTRICTS APPLY.
APPLY AND IT WOULD GREATLY REDUCE WHAT INDIVIDUAL TEACHER WOULD RECEIVE ACROSS DISTRICTS OF THE STATE IF THEY ACCEPT EVERY DISTRICT THAT DOES APPLY.
BUT THAT IS UNKNOWN AT THIS TIME.
AND I THINK THE FEAR IS IN SOME OF THE CONFERENCE CALLS I'VE BEEN ON, THAT AS THE DOLLARS GET BIGGER, WE I BELIEVE IT'LL BE FUNDED THIS BIENNIUM.
I'M JUST MORE WORRIED ABOUT PROMISES THAT ARE MADE NOW AND TEACHERS' EXPECTATIONS.
AND AS WE GET LATER DOWN THE ROAD, WHAT MIGHT HAPPEN? I AGREE.
EVEN WHEN HOUSE BILL THREE WAS PASSED AND BEFORE ALL THE MODELS OF TIA WERE AVAILABLE, THE STATE LEGISLATURES EVEN NOTED THAT FUNDING HOUSE BILL THREE IN FUTURE BIENNIUMS IS GOING TO BE TOUGH.
AND MR. GLICK, THAT ALSO INCLUDES OUR ADSY.
THOSE ARE THE SAME THINGS AS MORE DISTRICTS START MOVING TO IT.
WE'RE 180 DAY CALENDAR, SO WE'RE GETTING ADSY FUNDING.
SO THE EXTENDED SCHOOL DAY CALENDAR, OTHER DISCUSSIONS ARE AS MORE SCHOOL DISTRICTS DO THAT, HOW IS THE STATE GOING TO SUSTAIN THAT? I DO WANT TO DO A SEGUE TO WHAT MR. SELDERS WAS TALKING ABOUT WITH THE HOLD HARMLESS.
AND THAT'S ONE OF THE DISCUSSIONS THAT IS HAPPENING WITH SUPERINTENDENTS AND PEOPLE THROUGHOUT THE STATE, WAS THEY GAVE US THE HOLD HARMLESS.
SO ARE THEY GETTING THE MONEY FROM.
PROBABLY FROM THE CARES FUNDING IN THE STIMULUS FUNDING WE'RE GETTING, THAT'S HOW THEY'RE GOING TO OFFSET IT.
YOU KNOW, IT'S NOTHING'S FOR FREE.
SO THOSE ARE SOME OF THE OFFSETS THAT WE'REFULLY ANTICIPATING THAT THEM DOING.
ANY OTHER COMMENTS OR QUESTIONS BEFORE WE MOVE ON WITH THAT, I'LL TURN OVER TO
[00:35:02]
MS. MAYO FOR THE CURRENT YEAR NUMBERS.GOOD AFTERNOON, MISS GRIFFIN, PRESIDENT SELDERS BOARD OF TRUSTEES, DR.
LOPEZ, AND WE ARE GOING TO TALK ABOUT THE 2021 BUDGET, WHICH IS OUR CURRENT YEAR BUDGET.
AND WHEN WE WERE CREATING THESE LAWS AND DISCUSSING THESE SLIDES, WE, LIKE MANY OF US, HAVE KIND OF REALLY REFLECTED ON THIS PAST YEAR.
AND WE WERE HERE IN FRONT OF YOU ABOUT THIS TIME LAST YEAR PRESENTING THESE SAME ASSUMPTIONS.
SO WE'LL GO THROUGH AS WE'VE MENTIONED BEFORE, OUR 2021 BUDGET WAS BUILT ON AN ADA OF FIFTY THOUSAND NINE ZERO SIX.
WE DID JUST BECOME AWARE THAT WE WILL BE GETTING SECOND SEMESTER HOLD HARMLESS.
SO WE ARE EAGER TO SEE THAT HOW THAT WILL AFFECT US.
WE BUILT OUR BUDGET ON A 98 PERCENT COLLECTION RATE.
OUR MAINTENANCE AND OPERATIONS TAX RATE WAS ZERO POINT NINE FIVE ONE THREE, AND THAT DOES INCLUDE THE FIFTH GOLDEN PENNY.
AND OUR FISCAL YEAR BEGINS ON JULY 1ST.
SO WE DO KNOW THAT OUR ADA HOLD HARMLESS IS EXTENDED, BUT WE WILL BE WAITING.
SOME OF THE CAVEATS FOR OUR SECOND SEMESTER HOLD HARMLESS IS DEPENDENT ON OUR SIX SIX WEEKS FACE TO FACE ATTENDANCE.
SO WE LIKELY WILL BE MAKING SOME ASSUMPTIONS UNTIL THEY DO THE SETTLE UP PROCESS TO DETERMINE WHAT THAT'S GOING TO BE ARE.
WE'LL TALK MORE IN DETAIL ABOUT OUR STUDENT NUTRITION FUND IN THE NEXT COUPLE OF SLIDES, AS WELL AS A TRIPLE C.
I KNOW WE'VE KIND OF BEEN TALKING OVER THIS YEAR ABOUT THE POSSIBILITY OF THE CURTIS CULWELL CENTER AFFECTING THE GENERAL FUND BUDGET RIGHT NOW WITH GRADUATION'S BEING HELD AT THE TRIPLE C THIS YEAR.
WE DO FEEL LIKE THAT THEY'LL BE ABLE TO SUSTAIN OPERATIONS WITHIN THEIR CURRENT FUND.
IF IF SOMETHING CHANGES, GRADUATION'S WILL BE COMING BACK.
WE'RE REPORTING TO YOU ON THAT SITUATION.
WE HAD OUR WINTER STORM IMPACT.
WE'RE CURRENTLY WORKING THROUGH THOSE DETAILS NOW BUDGETS AND WORKING VERY CLOSELY WITH MAINTENANCE AND OPERATIONS TO DETERMINE WHAT THAT'S GOING TO BE.
YOU CAN LIKELY EXPECT TO SEE SOME OF THAT OUTCOME COMING IN THE APRIL BUDGET AMENDMENT.
WE'LL BE BRINGING YOU THOSE DETAILS THEN.
WE IN THE BUDGET AMENDMENT THAT YOU WILL APPROVE TODAY THAT WAS PRESENTED IN FINANCE DOES SHOW A DECREASE IN LOCAL OPERATING REVENUES DUE TO RENTALS, GATE RECEIPTS AND INTEREST INCOME THAT PERFORMED SLIGHTLY LESS THAN WE HAD BUDGETED FOR.
SO WE'LL TALK ABOUT THAT IN ONE OF THE UPCOMING SLIDES.
AND THEN ANY POSSIBLE SPRING COVID EXPENSES.
WE'RE STILL WORKING CLOSELY WITH MAINTENANCE AND OPERATIONS IN OTHER AREAS OF THE DISTRICT TO DETERMINE ANY FURTHER IMPACT ON THAT.
AND THEN, CCMR WE'LL TALK A LITTLE BIT ABOUT THAT COMING UP.
BUT JUST TO LET YOU KNOW, THAT'S ONE OF THE ITEMS THAT WE HAD BEEN WAITING ON TEA TO FINALIZE.
THEY DID GIVE US PRELIMINARY NUMBERS EARLIER IN THE YEAR AND THE FINAL NUMBERS DO MATCH THAT.
AND OUR GREAT CURRICULUM AND INSTRUCTION DEPARTMENT HAS CONFIRMED THOSE NUMBERS WITH US.
AND SO WE'RE GLAD TO ANNOUNCE THAT THOSE NUMBERS ARE IN THE BUDGET THAT WILL BE PRESENTING THE BUDGET WE HAVE TODAY AND THE FUTURE BUDGET WILL BE PRESENTING.
SO AS WE TALKED ABOUT IN THE PAST, JUST ONE OF THE THINGS THAT WE'VE REALLY BEEN WORKING ON, DR.
RINGO'S LEADERSHIP IS CLOSING THE REVENUE GAPS.
AND SO TWO DISTINCT AREAS THAT WE HAVE WORKED ON, TRANSPARENCY AND WORKING WITH THE BOARD IS BUDGETING OUR INTEREST INCOME, AS YOU CAN SEE, IN 18-19 BUDGET VERSUS ACTUALS AND ON.
WE'VE REALLY WORKED TO CLOSE THAT GAP FOR OUR INTEREST INCOME, WHICH IS ONE OF THE REASONS WHY WE'VE BEEN TALKING A LOT ABOUT THAT THIS YEAR WHILE WE'RE BRINGING THAT BUDGET AMENDMENT TO YOU TODAY, THIS EVENING TO REVIEW THAT.
AND [INAUDIBLE] AND SO ONE THING AS YOU'LL SEE THERE, WE DID THAT 18-19 THERE WAS TEN MILLION AUDIT ACTUALS VERSUS THE SIX MILLION BUDGETED IN THAT PARTICULAR YEAR.
WE DID EXPECT THAT FOUR MILLION DOLLAR PAYMENT TO HIT THE 19-20 YEAR.
WE GOT THE PAYMENT EARLY, SO WE WERE GLAD TO GET IT EARLY.
BUT THAT IS WHY THAT DISCREPANCY IS THERE AND THOSE NOTES REFLECT THAT.
AND JUST TO REMIND YOU, WE'VE HAD A VERY INTERESTING LAST FEW YEARS WITH 18-19 WE CHANGE OUR FISCAL YEAR SO THAT AFFECTED OUR BUDGET VERSUS ACTUALS.
AND WE HAD A HOUSE BILL THREE IN 19-20, SO GREAT.
AND THEN WE WENT THROUGH COVID.
SO WE'VE HAD A LOT OF INTERESTING AND EXCITING LESSONS LEARNED OVER THE LAST THREE YEARS.
THIS SLIDE SHOWS OUR ONGOING BUDGETED AND SPECIAL PROGRAM INITIATIVES.
SO I WANT TO LET YOU KNOW THIS LIST IS THE ADDITIONAL DOLLARS THAT THE BOARD APPROVED OVER THE LAST FEW YEARS OVER THE BASE BUDGET.
SO THESE LINE ITEMS MAY NOT REPRESENT THE ENTIRE COST OF A PARTICULAR PROGRAM.
[00:40:03]
SO JUST TO LET YOU KNOW THAT THERE ARE SOME PROGRAM EVALUATIONS AND ANALYSIS IN PROGRESS, BUT AS YOU KNOW, THOSE COULD TAKE MANY MONTHS THEY'VE BEEN WORKING ON.A LOT OF THESE PROGRAM REVIEWS AND WE'LL BE BRINGING YOU THE OUTCOME OF THOSE PROGRAM REVIEWS AS WE GO THROUGH THE YEAR, JUST TO LET YOU KNOW THAT THESE ARE THE ADDITIONAL BUDGET DOLLARS, THOSE PROGRAM REVIEWS WOULD REFLECT THE ACTUAL COST OF MANY OF THESE PROGRAMS. ONE EXAMPLE OF A FULLY REPRESENTED COSTS GO IN THIS CASE WOULD BE THE ACE PROGRAM.
THAT WAS A NEW PROGRAM THAT WAS FULLY FUNDED BY THE BOARD.
YES, MA'AM, THE ONGOING BUDGETED SPECIAL PROGRAMS AND INITIATIVES.
INCLUDED IN THE BUDGET THAT WE ARE TRACKING ON A MONTHLY BASIS, RIGHT? YES, MA'AM.
THESE ARE ITEMS THAT HAVE BEEN APPROVED IN THE PAST AND THEY ARE CURRENTLY REPRESENTED IN THE BUDGET.
YOU'RE JUST INDICATING TO US, WHAT WE ADDED FOR THIS CURRENT YEAR IS ADD ON FROM THE BASE.
AND ALSO BEFORE YOU'RE TOO FAR DOWN THE LINE.
AND MAYBE THIS IS A DISCUSSION FOR A DIFFERENT TIME, BUT WHAT ARE WE PLANNING TO DO AS FAR AS ACE FUNDING AND MAGNET EXPANSION? DR. LOPEZ, WE DECIDED TO KEEP ANOTHER YEAR DUE TO COVID, AND WE'RE NOT DOING ANY MAGNET EXPANSION AT THIS TIME.
BUT WE SHOULD SEE THAT IN THE NEW PROGRAM ADDS AS WE GET INTO WHEN WE GET INTO 21-22, IS THAT RIGHT? IF IT'S A NEW PROGRAM ADD.
IN THE MAGNET, WE ARE NOT GOING TO HAVE ANY NEW PROGRAM ADDS.
AND SO THAT WOULD BE EXPANSION.
BUT ACE IS NOT A NEW PROGRAM, SO IT WOULDN'T BE IN THE NEW PROGRAM ADDS.
SO THESE ADDS THAT ARE IN THE BUDGET THAT WE'RE SEEING ON PAGE 20.
WILL BE IN THE BASE BUDGET WHEN WE START LOOKING AT OUR BUDGET FOR 21-22.
YES, THEY ARE CURRENTLY IN THIS BUDGET AND WILL CARRY TO NEXT YEAR.
THESE ARE THE NEW ADS THAT WERE APPROVED LAST YEAR.
THEY ARE CURRENTLY IN THE BUDGET.
SO THE BUDGET AMENDMENTS THAT WE BRING YOU EVERY MONTH DO INCLUDE THESE ITEMS. THESE WERE THE ONGOING ADS THAT WERE APPROVED.
AND WE'LL ADDRESS THIS IN A MINUTE.
BUT I JUST WANT TO HIGHLIGHT AT THE BOTTOM, YOU'LL SEE PLEXIGLASS MAINTENANCE COVID IN HOUSE DISINFECTING STAFF.
SO AS WE MOVE THROUGH THE COVID PANDEMIC, THESE ARE ITEMS WE WILL WANT TO BRING FOR YOUR REVIEW TO POSSIBLY REDUCE FROM THIS LIST.
SO WE'LL TALK ABOUT THE DETAILS OF THAT.
BUT THESE ARE ITEMS THAT WERE APPROVED LAST LAST YEAR FOR THIS FISCAL YEAR.
THEY ARE CURRENTLY IN THE BUDGET.
THESE WERE THE ITEMS THAT WERE APPROVED LAST YEAR.
THEY'RE CURRENTLY IN THIS BUDGET THAT THEY WILL FALL OFF FOR NEXT YEAR.
YOU ALSO HAVE A HANDOUT THAT WE DROPPED OFF WHEN I FIRST CAME IN.
IT'S A STAPLED PIECE, I BELIEVE HAS A BLUE COVER, KIND OF AN EXCEL SUMMARY.
THOSE ARE THE PRIOR YEAR RECOMMENDATIONS.
IF YOU WANT TO LOOK AT THAT AND KIND OF SEE THE THINGS THAT WERE ADDED AND REDUCED AS WE'VE GONE THROUGH THE LAST FEW YEARS.
MS. MAYO, ON THIS PAGE THAT YOU HANDED OUT.
ARE ANY OF THESE ONE TIME ADDS? NO, SIR.
SOME OF THOSE WERE THOSE ARE ONGOING ADDS.
IF MR. MILLER IF IT WAS A ONE TIME ADD IN, FOR EXAMPLE, 17-18, THE 18-19 RECOMMENDATION SHEET SHOULD REFLECT THAT REDUCTION OF ANY OF THOSE.
ANY ITEMS ADDED OR REDUCED WILL BE INCLUDED IN THOSE.
OK, AND AGAIN, FOR EACH OF THESE PROGRAMS, AT SOME POINT AFTER THE PROGRAM REVIEW COMMITTEE HAS DONE ITS WORK, WE WILL GET AN ALL IN COST OF VARIOUS PROGRAMS. I BELIEVE THAT IS THE EXPECTATION.
AS WE AS WE'VE SEEN WITH THE TRANSPORTATION AUDIT, HUMAN RESOURCE, SPECIAL ED AUDIT, THAT PROGRAM REVIEW AND WORKING WITH THE CHIEFS IN THOSE PROGRAMS IN OTHER AREAS, THERE WERE QUESTIONS THAT HAVE DEVELOPED THAT WE HAD SEEN EARLIER THIS MONTH THAT DOES IT GENERATE FUNDING.
DOES IT IMPACT OUR LITERACY? CCMR AS DRIVING QUESTIONS.
AND SO WHAT WE'RE DOING IS TAKING ALL THE VARIOUS PROGRAMS AND PUT IT ON ONE SPREADSHEET SHOWING THAT COST AND THEN CHECKING OFF THE BOX IF IT HITS ONE OF THOSE BOXES.
AND THEN WE'RE BRINGING THAT BACK TO THE BOARD IN APRIL BECAUSE THAT IS PART OF THE BUDGET EVALUATION PROCESS THAT IS OCCURRING.
CAN I ASK A QUESTION RIGHT HERE REAL QUICK.
COULD YOU GO BACK TO PAGE 20 REAL QUICK?
[00:45:01]
THESE ARE THE ONGOING BUDGETED SPECIAL PROGRAMS, AND I SEE NUMEROUS ONES ON HERE.I'M JUST GOING TO PICK ONE TO DISCUSS IT.
FOR INSTANCE, READY ONE TO ONE WHERE IT SAYS NINE POINT FOUR THREE FIVE MILLION.
AND I TURN THE PAGE TO PAGE TWENTY ONE AND I SEE TECHNOLOGY ONE TO ONE.
SUSTAINABILITY IS THAT TWO POINT FOUR MILLION ONGOING ADD ON PAGE TWENTY ONE REFLECTED IN THAT NINE POINT FOUR MILLION.
SO EVERYTHING ON PAGE 20, KIND OF THE TOTAL AND WHAT'S ON PAGE 21 WAS SOMETHING ADDED TO IT TO BRING IT TO THAT TOTAL.
THE IN MOST CASES, PAGE 20 ONLY REFLECTS OUR MAJOR INITIATIVES AND PROGRAMS. SO IF THERE WAS A VERY SMALL ITEM, FOR EXAMPLE, AT THE VERY BOTTOM ANNUAL INCREASE CONTRACT FEES PD HELMET FIT SYSTEMS, SINCE THOSE AREN'T PART OF MAJOR INITIATIVES AND PROGRAMS, THOSE DOLLARS MAY WE MAY NOT TRACK THOSE DOLLARS AS A MAJOR INITIATIVE OR PROGRAM SINCE THEY WERE JUST ITEMS NEEDED FOR NORMAL OPERATION.
BUT LIKE, FOR INSTANCE, THE ONE POINT THREE SEVEN SIX MILLION ON THE NATATORIUM ON PAGE TWENTY ONE, THAT'S PART OF THE ONE POINT EIGHT SEVEN ONE MILLION ON PAGE TWENTY.
SO ON SLIDE 23, THIS LISTS OUR PROJECTED FUNDING ELEMENT.
SO THESE ARE ITEMS THAT WE BROUGHT TO YOU IN THE PAST AND WE WANTED TO SHARE WITH YOU.
SO THIS IS A SAMPLE OUT OF OUR FUNDING TEMPLATE WHEN WE ENTER IN OUR VARIOUS ENROLLMENT'S A.D.A CONTACT HOURS, FTES FOR OUR DIFFERENT STUDENT GROUPS.
THESE ARE THE DOLLARS THAT ARE GENERATED BY THOSE STUDENT GROUPS, AS YOU CAN SEE THERE.
FOR EXAMPLE, IF YOU LOOK AT THE ONE THAT SAYS TWENTY FOUR DASH TOTAL COMP ED ALLOTMENT, THE PARENTHESES THERE INDICATES THAT WE MUST SPEND FIFTY FIVE PERCENT ON THAT, THAT PARTICULAR PICK.
SO IN THAT PARTICULAR PROGRAM AND THE STATE TRACKS THOSE DOLLARS AND I'LL SHARE WITH YOU ON SO YOU CAN SEE HERE, CCMR THOSE ARE THE CHANGES THAT'S STILL ONGOING.
WE HAVE RECEIVED FINAL NUMBERS AND THAT'S THE INFORMATION THAT WE DID PRESENT TO YOU, JUST A FEW SLIDES AHEAD.
BUT JUST TO KIND OF HIGHLIGHT HOW THIS LOOKS FOR THE STATE.
I'M CONFUSED ON THAT ITEM TWENTY FOUR LINE TWENTY FOUR.
YOU SAID TOTAL COMP ED IS FIFTY SIX AND SPEND FIFTY FIVE PERCENT.
FIFTY FIVE PERCENT OF THE FIFTY SIX MILLION OR FIFTY FIVE PERCENT OF SOME OTHER NUMBER.
FIFTY FIVE PERCENT OF THE FIFTY SIX MILLION.
OK, WOULD HAVE TO BE EARMARKED TOWARD.
DIRECTLY ATTRIBUTED TO THE COMP ED ALLOTMENT AND TRACKED BY A PARTICULAR ACCOUNT CODE THAT WE WOULD THEN REPORT TO THE STATE.
SO FOR INSTANCE THE OTHER FORTY FIVE PERCENT IS ELIGIBLE TO BE ALLOCATED TO WHAT? IT'S ALLOCATED THROUGHOUT THE DISTRICT.
SO AS YOU CAN IMAGINE, THERE ARE MANY DEPARTMENTS AND MANY AREAS THAT SUPPORT THE DISTRICT AS A WHOLE THAT DOES SUPPORT THOSE STUDENTS AS WELL.
SO ONE WAY TO THINK OF IT WOULD BE AN INDIRECT COST.
SO WE'RE REQUIRED BY THE STATE TO DIRECTLY SPEND FIFTY FIVE PERCENT ON THAT PICK.
THE OTHER IS TO SUPPORT DISTRICT WIDE FUNCTIONS.
IF SOMEWHERE IN OUR BUDGET PROCESS, WE COULD BREAK THAT DOWN A LITTLE MORE JUST FOR UNDERSTANDING.
OK, I WOULD LIKE TO AND THE NEXT SLIDE MIGHT GIVE YOU KIND OF THE ANSWER YOU'RE INTERESTED IN, MR. MILLER, BUT IF NOT, WE'LL MAKE NOTE OF THAT AND PRESENT THAT IN APRIL.
ON THE SAME PAGE, WOULD YOU BE ABLE TO TELL US, BASED ON A HOUSE BILL THREE WHERE THEY CHANGED THE ALLOTMENTS PERCENTAGES, WHERE WERE THE INCREASES AND DECREASES? IS THAT IS THAT EASY TO DO? OR COULD WE MAYBE AND EVEN JUST FOR THE NUMBERS, THE NUMBERS OR THE PERCENTAGES.
WE DID SHOW A COMPARISON IN JULY.
WE CAN BRING THAT BACK IN APRIL TO SHOW YOU HOW THAT SPECIFICALLY AFFECTED US NOW.
OK, AND OBVIOUSLY, THE BILL THAT WE'VE REFERRED TO IN THE EARLIER SESSION, WE WERE TALKING ABOUT DAN HUBERTY'S BILL AND THE COMPANION BILL.
THAT'S RIGHT NOW, THE EXACT SAME LANGUAGE IN THE SENATE.
THEY CALL THE CLEAN UP BILL IN DIFFERENT DISCUSSIONS.
DO YOU EXPECT ANY MAJOR CHANGES IN THE ALLOTMENTS THAT WE WOULD SEE THERE? SO I'VE SEEN SOME LANGUAGE.
THEY TALKED ABOUT SOME OF THE CLEAN UP.
AND I DO HAVE A PRESENTATION COMING UP NEXT WEEK WHERE THEY'RE GOING TO TALK ABOUT THAT.
RINGO MAY HAVE SOME ADDITIONAL INFORMATION, BUT OF THE FEW ITEMS THAT I HAVE SEEN, THEY HAVE BEEN JUST THAT CLEANUP ITEMS. THEY'RE AREAS WHERE THEY SAW MAYBE SOME WEAKNESS IN THE BILL THAT THEY FELT LIKE THEY NEEDED TO FIRM UP.
FOR EXAMPLE, FOR CCMR, THERE ARE MULTIPLE QUALIFICATIONS FOR STUDENT TO BE COUNTED AS
[00:50:05]
CCMR. ONE OF THE AREAS OF A BILL THAT'S BEEN BROUGHT UP IS FOR IF A STUDENT GRADUATES AND ACHIEVES AN ASSOCIATE'S DEGREE WITHIN A CERTAIN AMOUNT OF TIME, THEY THEN CAN BE ACCOUNTED FOR CCMR SO THAT'S AN AREA WHERE THEY THOUGHT, HEY, WE DIDN'T ACCOUNT FOR THIS, THIS WOULD BE A USEFUL.WHEN WE COME BACK IN APRIL, WE DEFINITELY LIKE I SAID, I HAVE ANOTHER TRAINING COMING UP.
I AM SURE WE'RE GOING TO LEARN MANY MORE THINGS AND WE CAN SHARE THAT WITH YOU.
BUT AS OF EVERYTHING I'VE SEEN, I DON'T SEE ANYTHING THAT WOULD BE A HUGE IMPACT TO OUR CURRENT FUNDING SYSTEM.
I THINK WHAT THEY SAID IT WAS THAT IT WAS CTE FOR THE SMALLER SCHOOL DISTRICTS, THAT THAT CALCULATION IS THE BIGGEST CLEANUP THAT WAS IN ONE OF THE PUBLIC ED AND POTENTIALLY THE OTHER THING I'VE BEEN HEARING IS THERE'S SOME QUESTION THAT'S CONTINUALLY COMING UP ABOUT HOW WE HOW DISTRICTS GET PAID ON THE MILITARY COMPONENT, BECAUSE I THINK THERE WERE SOME DISTRICTS WHO WERE CLAIMING MILITARY STATUS, IF YOU.
INDICATED YOU WANTED TO GO INTO THE MILITARY, MAYBE SAW A RECRUITER OR SOMETHING, BUT NEVER ACTUALLY JOINED THE MILITARY, AND I TO SPEAK TO THAT POINT.
I DO BELIEVE THAT THAT MILITARY COMPONENT IS ONE OF THE REASONS THAT CCMR FIGURES, WERE SO DELAYED AND GIVING US THAT FINAL PIECE.
AND SO THAT VERY WELL COULD BE A CLEAN UP AREA THAT THEY'VE SEEN SOME DEFICIENCY IN.
AND A CONFERENCE CALL I WAS ON YESTERDAY REFERRING TO THE CLEAN UP BILL THAT YOU'VE TALKED ABOUT, THE WAY TO QUOTE THE LADY, SHE SAID, WE HAVEN'T SEEN THE NEFARIOUS PARTS OF WHAT'S IN THERE.
SO THAT'S AGAIN A MAJOR THING TO LOOK FOR.
SO, MR. MILLER, THIS MAY BRING SOME CLARITY TO YOUR QUESTION.
SO, SLIDE 23 IS OUR BUDGET REVENUE PROCESS WHERE WE ARE LOOKING AT THESE SPECIAL POPULATIONS, DETERMINING WHAT OUR REVENUE IS GOING TO BE.
AND THEN SLIDE 24 SHOWS US WHAT WE ACTUALLY SPENT IN THOSE AREAS.
SO AFTER ALL IS SAID AND DONE AND OUR AUDIT IS DONE AND TEA IS DONE SETTLING UP.
THEY ARE LOOKING AT OUR AREAS OF SPECIAL POPULATION.
AND SO YOU CAN SEE THERE, FOR EXAMPLE, CAREER AND TECHNOLOGY.
THE SUMMARY OF FINANCE SHOWS THAT WE WERE ALLOTTED THIRTY SEVEN POINT SIX MILLION DOLLARS.
WE WERE REQUIRED TO SPEND FIFTY FIVE PERCENT, WHICH YOU'LL SEE THE REQUIRED SPEND COLUMN.
AND THEN OUR ACTUAL AUDITED EXPENDITURE WAS TWENTY POINT EIGHT.
SO YOU CAN SEE IN THAT EXAMPLE, WE WE DID EXCEED EXPECTATIONS BY ONE HUNDRED AND THIRTY FIVE THOUSAND DOLLARS.
SO THE COLUMN, THE DIFFERENCE IN THE RIGHT, WE HAVE EXCEEDED EXPECTATIONS FROM THE STATE IN EVERY CATEGORY.
SO WHAT'S THE THEORY BEHIND HAVING AN ALLOTMENT AND THEN REQUIRING A A PORTION OF IT TO BE SPENT DIRECTLY? IS IT RECOGNITION OF ADDITIONAL OVERHEAD ITEMS IT TAKES TO SUPPORT THE PROGRAM? I MEAN, JUST GIVE ME SOME BACK FILL ON THE FORTY FIVE PERCENT.
SO, FOR EXAMPLE, THESE PROGRAMS AND SOME OF THE SPECIFIC POPULATIONS, AS YOU CAN IMAGINE, WOULD REQUIRE ADDITIONAL RESOURCES TO SUPPORT THESE STUDENTS.
IN SOME AREAS, THEY COULD BE MANDATES BY THE STATE THAT ARE REQUIRED TO SUPPORT THE STUDENTS IN SOME AREAS THEY ARE NEEDED PROGRAMS AND ITEMS THAT ARE REQUIRED TO OBTAIN THE STUDENTS SUCCESS LEVELS THAT ARE NEEDED.
SO IN EACH OF THESE AREAS, THE STATE IS INDICATING THAT THEY WILL GRANT ADDITIONAL FUNDING FOR THESE POPULATIONS DUE TO THOSE ADDITIONAL RESOURCES.
THEY ALSO UNDERSTAND THAT IT TAKES A DISTRICT WIDE EFFORT TO SUPPORT THESE PROGRAMS, WHICH IS WHY YOU MAY ONLY SEE THE 55 PERCENT IN SOME AREAS AND SOME OF THESE AREAS, FOR EXAMPLE, GIFTED AND TALENTED.
THAT THAT'S A TRACKED ITEM, THAT IS PICK 21, ALTHOUGH WE DON'T RECEIVE ADDITIONAL REVENUE BECAUSE THAT WAS A CHANGE IN HOUSE BILL THREE, WE'RE STILL REQUIRED TO SPEND THOSE DOLLARS TO SUPPORT THOSE STUDENTS.
SO THAT THAT IS THE METHODOLOGY BEHIND THAT.
DOES THAT 55 PERCENT NUMBER EVER CHANGE OR IS THAT PRETTY.
NOT IN MY TENURE, THE THRESHOLD DOES NOT CHANGE AT FIFTY FIVE PERCENT.
AS OUR STUDENT POPULATIONS SHIFT OR CHANGE.
OUR DYSLEXIA STUDENT POPULATION IS INCREASING BECAUSE WE WERE UNDER IDENTIFIED IN THOSE STUDENTS.
AND SO AS THAT POPULATION OF THOSE STUDENTS ARE CODED, THAT DOLLAR AMOUNT OF RECEIVING GOES UP.
THEREFORE, WE'RE STILL REQUIRED TO SPEND HUNDRED PERCENT OF THOSE DOLLARS.
AND SO WHAT WE'RE GOING TO SPEND MORE MONEY ON THOSE STUDENTS.
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YOU CAN SEE WITH WHAT WE HAVE DONE WITH DYSLEXIA AND ADDING ALL THOSE TEACHERS, WE FAR EXCEED THAT AMOUNT.BUT THE DOLLAR AMOUNT COULD SHIFT.
AND IT DOES SHIFT YEAR TO YEAR BECAUSE AS YOU'RE GOING TO SEE HERE, THIS IS WHERE WE PLUG IN ALL THAT INFORMATION YEAR AFTER YEAR.
AND BEFORE I TURN BACK OVER MS. MAYOR.
OUR NUMBERS ROLLING FOR FOR 2021 HAVE STAYED THE EXACT SAME IN OUR ROLL FORWARD BECAUSE WE DON'T KNOW WHAT THE STATE'S GOING TO TELL US TO DO WITH OUR SUB POPS AND ADA.
IF THE STATE WAS NOT TELLING US THAT THESE NUMBERS IN THE YELLOW COLUMN WOULD BE ADJUSTED OFF OUR CURRENT REPORTING PERIODS FOR EVERY SIX WEEKS.
AND SO BECAUSE OF THOSE VARIANCES, FOR EXAMPLE, SPECIAL ED, THOSE NUMBERS DO SHIFT UP AND DOWN DEPENDING ON THE SUB POP WE'RE LOOKING AT.
EVEN BILINGUAL OR BILINGUAL POPULATION NUMBERS HAVE CHANGED FROM LAST YEAR TO THIS YEAR IN THOSE CODINGS BECAUSE STUDENTS GRADUATE AND NEW STUDENTS COME IN, STUDENTS MOVE OUT, AND THOSE DOLLAR AMOUNTS WILL NOT STAY THE EXACT SAME YEAR TO YEAR TO YEAR.
BUT THEY ARE WITHIN RANGE, YEAR TO YEAR TO YEAR OF WHAT WE ARE ALLOCATED.
SO NECESSARILY THIS SLIDE YOU SHOWED ME ON TWENTY THREE IS NOT NECESSARILY OR ISN'T NECESSARILY RELATED TO ADA.
IT IS FACTORED INTO OUR ADA YES, SIR.
THAT IS FACTORED INTO OUR ADA SO WE HAVE OUR AVERAGE DAILY ATTENDANCE TO GENERATE FUNDING AND THEN OUR TIER TWO WITH OUR WEIGHTS AND OTHER SOURCES.
THOSE ARE WEIGHTED ADDITIONAL FUNDING DOLLARS WE RECEIVE IN THOSE AREAS AND IT IS FACTORED INTO THIS.
SO THE WEIGHTED ADDITIONAL DOLLARS THAT ARE REFLECTED ON PAGE TWENTY THREE.
THERE ARE SOME REQUIREMENTS ABOUT HOW THEY..
I'M JUST TRYING TO GET THE GRID DOWN AND HOW THE FUNDING FLOWS.
THIS IS HOW THE STATE TRACKS FROM DISTRICT TO DISTRICT.
ANYBODY COULD PULL UP TO SEE WHAT WE SPEND ON CTE BECAUSE ON THE EXPENDITURE SIDE THE TWENTY TWO IS IN THE CODE.
AND SO YOU CAN, WE CAN LOOK UP AND SEE WHAT WE SPEND ON CTE AND ANOTHER DISTRICT SPENDS ON CTE.
THAT'S HOW THEY DETERMINE OUR FIRST RATINGS AND OUR ANNUAL AUDIT.
THERE'S A SLIDE IN OUR ANNUAL AUDIT THAT [INAUDIBLE] DOES EVERY YEAR IN REGARDS TO OUR PICK EXPENDITURES THAT WE'RE MEETING THOSE THRESHOLDS.
AND SO IT ALLOWS THAT COMPARISON ACROSS EVERY STATE OF TEXAS.
OK, SO THE LAST QUESTIONS ARE PIEMS DATA GOES LARGELY INTO HELPING DETERMINE THESE CATEGORIES.
PIEMS IS THE DRIVING FORCE FOR ALL ACADEMIC AND FINANCIAL REPORTING INDICATORS DR. RINGO, WHILE YOU'RE THERE.
EXPLAIN THE DIFFERENCE IN TIER ONE AND TIER TWO AND I THINK THAT WILL ADD SOME CLARITY TO THE ALLEGATIONS AND THINGS LIKE THAT.
GREAT COMMENT AND THIS VERY HIGH LEVEL BECAUSE WITHOUT GETTING INTO ANY OF THE DETAILS.
BUT TIER ONE IS JUST BASED ON OUR STUDENT POPULATIONS AND AVERAGE DAILY ATTENDANCE.
SO WE'RE ROUGHLY SIXTY ONE HUNDRED SIXTY TWO HUNDRED PER KID.
IT GOES INTO OUR WEIGHTS, OUR SPECIAL ED POPS, OUR CTE POPS.
IF THERE'S AN ADVANCE CTE COURSE, IT'S GOING TO KICK IN ADDITIONAL DOLLARS AS WE CODE THOSE STUDENTS.
AND SO THAT'S WHY, FOR EXAMPLE, ON THIS SLIDE YOU SEE UP THERE ARE DEFINED ADA NUMBER AND THEN AS WE GET DOWN THERE INTO OUR ADJUSTED ADA FTES AND THAT SECOND PORTION, THAT IS GOING TO START IMPACTING SOME OF OUR TIER TWO FUNDING, ALONG WITH ADDITIONAL PENNIES THAT WE WOULD OR ANY DISTRICT WERE TAX ABOVE THAT FOURTH GOLDEN PENNY.
AND SO WE AS A DISTRICT IN GARLAND HAVE THAT FIFTH GOLDEN PENNY.
THEN THERE ARE DISTRICTS THAT HAVE HAD THE FULL TRE AND THEY HAVE THOSE THREE ADDITIONAL GOLDEN PENNIES AND COPPER PENNIES THAT WOULD GENERATE ADDITIONAL DOLLARS WITHIN THESE CATEGORIES, TOO.
THAT IS AS HIGH LEVEL AS I COULD TRY TO GET WITH IT WITHOUT GETTING.
AND WITH THAT, I'LL TURN IT BACK OVER TO MS. MAYO.
MR. MILLER, DID THAT SATISFY YOUR QUESTION? YES, VERY MUCH.
RINGO, THIS IS A KIND OF A SNAPSHOT OF OUR REVENUE TEMPLATE.
YOU CAN SEE HERE ALL OF THE ITEMS THAT WE HAVE TO ENTER FOR OUR VARIOUS STUDENT POPULATIONS TO COME WITH THE OUTCOME OF THE SLIDE THAT YOU SAW ON TWENTY THREE AND HOW WE GENERATE OUR FORECASTS FOR REVENUE.
THIS IS A SECOND KIND OF SHOT OF THAT THAT COMES INTO YOU CAN SEE HOW WE ENTER OUR TAX COLLECTIONS.
WE HAVE OTHER DATA SUCH AS MILES, THINGS LIKE THAT, FOR TRANSPORTATION THAT ALSO GENERATES REVENUE THAT WE HAVE TO CAPTURE THERE.
SO THIS IS JUST KIND OF A SUMMARY VISUAL FOR YOU TO SEE FOR THE VARIOUS ITEMS THAT GO INTO THAT PROCESS.
SLIDE 27 OR THAT'S NOT TWENTY SEVEN, TWENTY NINE IS OUR 2021 BUDGET REDUCTIONS, THIS IS THE SAME SLIDE THAT WE BROUGHT TO YOU IN DECEMBER.
SO AS A RESULT OF THE NOVEMBER ELECTION, WE DID COME BACK AND OUR CAMPUS AND DEPARTMENTS WERE REQUESTED TO MAKE 12 PERCENT BUDGET REDUCTIONS.
THIS IS THE SUMMARY OF THAT REDUCTION.
THIS IS CURRENTLY IN THE BUDGET FOR THIS YEAR AND HAS TRANSFERRED INTO THE BUDGET FOR NEXT YEAR.
WE ARE STILL INITIATING BUDGET RESTRICTIONS ON FOOD AND BEVERAGES, EXTERNAL
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CONSULTANTS, OVERTIME PAY, PROMOTIONAL ITEMS AND TRAVEL.SO OUR BUDGET REDUCTION EXPECTATIONS, SO RIGHT NOW, WE'VE KIND OF SHARED WITH YOU THAT WE DO EXPECT TO SEE ANYWHERE BETWEEN A THREE AND FOUR PERCENT SALARY SAVINGS.
SO WE HAVE HISTORICALLY SEEN SALARY SAVINGS EVERY YEAR.
WE DO HAVE A BIT HIGHER VACANCY RATE THIS YEAR, AS WE SHARED WITH YOU BEFORE.
SO WE ARE EXPECTING TO SEE THREE AND FOUR MILLION DOLLAR SAVINGS.
WE HAVE A HIGHER TOTAL VACANT POSITION COUNT IN GENERAL FUND.
AND THESE YOU KNOW, SOME OF THESE POSITIONS COULD BE IN THE FINAL STAGES OF THE HIRING PROCESS.
BUT OVERALL, THAT FIGURE HAS IT'S ABOUT TWO HUNDRED AND THIRTEEN FTES AS OF TODAY, IT'S APPROXIMATELY EIGHT POINT SEVEN DOLLARS MILLION JUST FOR THOSE POSITIONS TODAY.
THAT DOESN'T CARRY OVER ALL THE POSITION VACANCIES THAT WE'LL SEE.
WE ALSO HAVE SAVINGS AND OVERTIME, EXTRA DUTY PAY AND SOME OTHER AREAS LIKE THAT.
SO WHEN WE COME IN APRIL, WE'LL CONTINUE TO PRESENT THAT INFORMATION TO YOU TO MAINTAIN TRANSPARENCY SO THAT YOU CAN HAVE AN EXPECTATION OF HOW THIS FISCAL YEAR WILL END MS. MAYO OF THOSE FTES THAT YOU TALKED ABOUT, THE TWO HUNDRED THIRTEEN.
ARE THERE SOME THAT YOU KNOW THAT WE'RE GOING TO HAVE TO FILL RIGHT NOW? THERE ARE RIGHT NOW, WE ARE FILLING THE CAMPUS TEACHER POSITIONS.
THERE ARE SOME POSITIONS THAT ARE REVIEWED BY A ROUNDTABLE ON A DAILY BASIS OR WEEKLY BASIS FOR THAT, DO YOU KNOW APPROXIMATE NUMBER? OF THE ONES THAT ARE GOING TO BE FILLED.
I DON'T DO WE KNOW WE CAN SHARE WE CAN BRING THAT INFORMATION BACK TO YOU.
I WAS GOING TO ASK ALSO BECAUSE I KNOW THAT WE HAVE APPROVED LIKE NINE OR TEN DIFFERENT NEW COURSES THAT WE'RE GOING TO HAVE TO FILL THOSE NEW POSITIONS.
I MEAN THEY ARE COMPLETELY DIFFERENT TYPE SITUATION, SO THAT WILL BE INCLUDED IN THAT? WE DON'T HAVE ANY NEW POSITION REQUEST RIGHT NOW TO SUPPORT THOSE NEW COURSES.
SO I DON'T KNOW IF THOSE ARE THEY'RE UTILIZING CURRENT FTE POSITIONS TO COVER THOSE.
THESE ARE OUR PROPERTY TAX RATES FOR THE PAST YEARS, STARTING WITH THAT FY 16, SO AS YOU CAN SEE, THIS IS THE LOWEST RATE WE'VE HAD SINCE FISCAL YEAR 16.
THIS IS THIS CURRENT FISCAL YEAR POINT NINE FIVE ONE THREE AND THEN POINT THREE 050.
SO WE'LL TALK A LITTLE BIT MORE ABOUT THE DETAILS OF THOSE HOW THEY'VE AFFECTED THIS YEAR AND HOW WE EXPECT TO SEE THIS FOR NEXT FISCAL YEAR.
HERE'S OUR ENROLLMENT HISTORY.
SO THIS IS THE SAME INFORMATION THAT A DEMOGRAPHER SHARED WITH US.
BUT THIS IS VERY DIRECTLY RELATED TO OUR FUNDING AND HOW WE GENERATE REVENUE.
WE GENERATE REVENUE THROUGH AN INCREASE IN ADA OR AN INCREASE IN TAX RATES.
THIS GIVES YOU AN IDEA OF HOW WE HAVE BEEN AFFECTED OVER THE PAST FEW YEARS AND THEN VERY MUCH HIGHLIGHTS HOW COVID HAS AFFECTED US.
THIS IS OUR ENROLLMENT HISTORY GROWTH, THIS WAS ALSO PRESENTED BY THE DEMOGRAPHER JUST SO THAT YOU CAN SEE THAT HOW WE ARE FARING IN ELEMENTARY, MIDDLE SCHOOL AND HIGH SCHOOL, YOU CAN SEE THAT OUR ELEMENTARY K THROUGH FIVE HAS DECREASED THERE.
THAT'S THE SAME INFORMATION THAT WE BROUGHT TO YOU IN THE PAST.
BUT K THROUGH FIVE, ENROLLMENT IS DOWN ABOUT FIVE PERCENT COMPARED TO TWENTY NINETEEN.
AND THEN OUR AVERAGE DAILY ATTENDANCE THAT WE HAVE BEEN TALKING A LOT ABOUT, THIS SLIDE WAS PRESENTED PRIOR TO THE KNOWLEDGE OF KNOWING WHAT OUR SECOND SEMESTER HOLD HARMLESS.
WELL, SO WE DON'T KNOW EXACTLY HOW THOSE FIGURES ARE GOING TO IMPACT US AT THIS TIME.
SO THESE ARE OUR FORECASTED PROJECTIONS.
AS WE STATED IN THE PAST, WE BUDGETED ON A ADA OF FIFTY THOUSAND NINE HUNDRED, AND WE DO EXPECT TO MEET THAT CRITERIA.
WE WILL BE LEARNING MORE AND MORE INFORMATION AS DETAILS COME OUT ABOUT HOLD HARMLESS AND HOW THAT WILL BE AFFECTING US.
THIS IS THE GENERAL FUND BUDGET.
THIS IS THE BUDGET AMENDMENT THAT WAS PRESENTED IN THE FINANCE AND AUDIT COMMITTEE PRIOR TO SPRING BREAK AND THAT I'LL BE BRINGING TO YOU FOR ADOPTION TODAY.
AND THIS IS WHERE WE ARE AS OF NOW UPON APPROVAL TONIGHT.
AND THIS HIGHLIGHTS THOSE CHANGES IN LOCAL REVENUE THAT WE DISCUSS.
SOME OF THIS IS RELATED TO COVID.
WE WENT AND FURTHER REDUCED THAT SINCE WE WEREN'T ABLE TO LEASE THAT BUILDING OUT AND THEN WE HAD LOWER THAN EXPECTED TICKET SALES FOR ATHLETIC EVENTS.
SO WE DID MAKE THOSE CHANGES THERE.
BUT THE OVERWHELMING MAJORITY IS DUE TO THE SECOND THE SECOND QUARTER INVESTMENT REPORT THAT WAS PRESENTED.
AND WE ARE EXPECTING ABOUT ONE POINT FIVE PERCENT RETURN WE'RE AT ABOUT ONE POINT ONE FIVE PERCENT RETURN.
SO THAT IS THE CAUSE OF THAT BUDGET REDUCTION MS. MAYO.
WITH RESPECT TO THE BUDGET REDUCTIONS WE HAD IN GATE RECEIPTS AND
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NATATORIUM AND PROBABLY THE CCC AS WELL, WHAT GUIDANCE ARE WE LOOKING FOR OR WILL WE HAVE TO RECEIVE BEFORE WE CAN CONTINUE AGAIN THE RENTAL OF THOSE PROPERTIES.WELL SO THOSE WERE LARGELY CLOSED BY THE GOVERNOR MANDATE AND THEN ALSO SCHOOL DISTRICT RULES.
DR. RINGO MIGHT SPEAK TO THOSE.
I CAN SPEAK TO THAT MR. MILLER WORKING WITH FACILITIES.
AND MR. GONZALEZ, WE WITH THE OPENING BY THE GOVERNOR, WE ARE ALLOWING LEASING AND RENTALS TO START OCCURRING AT OUR FACILITIES.
AND THE CCC IS INCLUDED IN THAT.
AND SO WITH THAT IN ROLLING INTO NEXT YEAR, AS MS. MAYO TALKS ABOUT NEXT YEAR'S PROJECTIONS.
WE'RE GOING TO INCLUDE OUR HISTORICALS AND GATE RECEIPTS AND WHAT WE'RE PROJECTING IN THE NATATORIUM.
SO WITH THE GUIDANCE GIVEN BY THE STATE IN REGARDS TO OPENING, WE ARE OPEN FOR BUSINESS AT THIS POINT.
OK, SO AND YOU SAY THOSE NUMBERS ARE THOSE REVENUES WILL BE BUILT INTO NEXT YEAR'S BUDGET? YES, SIR.
NOW, INTEREST INCOME, YOU KNOW, EVEN EIGHT MONTHS AGO, NO ONE COULD HAVE SAID THE RATES WOULD BE WHERE THEY'RE AT.
AND AS FAR AS PUBLIC INVESTMENTS GO, IT IS BY FAR THE MOST RESTRICTIVE INVESTMENT TYPE IN ANY INDUSTRY OR SECTOR, BECAUSE ONE, THE FIRST THING WE HAVE TO PROTECT IS THE PRINCIPLE.
AND SO WHEN THEY DROPPED IN THAT AND THEN CONTINUE TO DROP AND THEN THOSE RATES [INAUDIBLE] THAT'S WE WENT FROM ONE POINT FIVE PERCENT DOWN TO POINT ONE FIVE IS WHERE WE'RE AT NOW.
YES, BUT GIVE ME AN ESTIMATE OF THE ANNUAL DOLLARS.
THE ESTIMATE WE TYPICALLY THE LAST COUPLE OF YEARS HAVE BEEN GENERATING AROUND THREE MILLION.
OPENING UP OUR GATES MIGHT OFFSET THE LOSS IN INTEREST INCOME.
OK, WELL, AT LEAST IT'S A TRADE OFF.
AND THEN HOPEFULLY WITH WHEN RATES DO START TO RISE AND GATE RECEIPTS START COMING IN, THAT NUMBER WILL THEN GO BACK UP TO HELP.
WILL YOU TELL ME WHEN RATES WHEN ARE THEY GOING TO RISE AGAIN? [LAUGHTER] IF I HAD THAT NUMBER, I WOULD BE A CONSULTANT IN THE PRIVATE SECTOR MAKING A LOT OF MONEY.
AND I'LL GO WITH YOU WHEN YOU GET THAT CRYSTAL BALL.
SO THIS REPRESENTS OUR GENERAL FUND PROJECTION.
SO HERE'S OUR OPERATING SURPLUS FOR THIS FISCAL YEAR.
YOU CAN SEE WE INCREASE TAX COLLECTION, RIGHT, BECAUSE WE DO BUDGET ON 98 PERCENT.
WE DO EXPECT THERE TO BE A SLIGHT INCREASE THERE.
ABOUT A MILLION DOLLARS PROJECTED PAYROLL SAVE THAT WE MENTIONED BEFORE.
IT COULD BE THREE TO FOUR PERCENT, 16 MILLION DOLLARS.
SO THAT BRINGS OUR DEFICIT DOWN TO ABOUT 10 MILLION DOLLARS.
WE DO KNOW IT WILL BE SOMEWHERE LESS THAN THERE BECAUSE WE DO EXPECT SOME NON PAYROLL SAVES.
BUT JUST TO REMIND YOU THAT WE DID TAKE THIS 12 PERCENT REDUCTIONS EARLIER IN THE YEAR.
SO IT'S AT THIS POINT, WE'RE STILL ANALYZING THE EFFECT OF THOSE NON PAYROLL SAVES.
OUR STUDENT NUTRITION FUND, SO I WANT TO GIVE A VERY BIG SHOUT OUT TO OUR STUDENT NUTRITION TEAM, THEY HAVE DONE AN AMAZING JOB THIS YEAR.
WE'VE WORKED WITH THEM VERY CLOSELY.
WE SPEAK WITH THEM ONCE A MONTH TALKING ABOUT THEIR BUDGET AND THEY ARE DOING SO MUCH GREAT WORK.
AND I KNOW OVER THE COURSE OF THE YEAR WE HAD SOME CONCERN THAT STUDENT NUTRITION MAY AFFECT THE GENERAL FUND.
WE ARE PROUD TO SAY THAT WE DO NOT EXPECT THAT TO HAPPEN.
AS WE MENTIONED BEFORE, ONE OF THE BIG INDICATORS OR SUPPORT THERE IS A REIMBURSEMENT FROM THE TEXAS DEPARTMENT OF AGRICULTURE.
WE DO HAVE INFORMATION THAT WE WILL RECEIVE THAT WE DON'T HAVE CONFIRMATION OF THE AMOUNT, BUT WE DO EXPECT IT TO BE ABOUT ONE POINT NINE MILLION DOLLARS PER STUDENT NUTRITION.
THEIR FUND BEGAN THIS YEAR WITH A FUND BALANCE OF ABOUT SEVEN POINT FIVE MILLION DOLLARS.
THEY ARE GOING TO OPERATE WITH A DEFICIT OF FIVE MILLION DOLLARS FOR THIS FISCAL YEAR, WHICH LEAVES ABOUT TWO MILLION DOLLARS IN RESERVES.
WITH THE TDA REIMBURSEMENT, THAT BRINGS US TO ABOUT FOUR MILLION DOLLARS.
SO BUT ON ANOTHER POSITIVE NOTE, AS PARTICIPATION INCREASES AND HOW THEY CONTINUE TO BE SUCCESSFUL, IT COULD BE HIGHER THAN THAT AT THE END OF THE YEAR.
SO THEY'VE BEEN DOING GREAT WORK.
OUR DEBT SERVICE FUND, YOU CAN SEE HERE OUR CURRENT BUDGETED AMOUNT FOR DEBT SERVICE IS ABOUT 60 MILLION DOLLARS.
WE DO HAVE A SLIGHTLY HIGHER TAV AND WE'RE GOING TO WE DO BUDGET THIS AT 98 PERCENT.
SO WE DO EXPECT TO SEE SOME POSITIVE CHANGES THERE FOR THE REVENUE.
AND YOU CAN SEE THAT THIS IS OUR CURRENT TAX RATE OF POINT THREE ZERO FIVE, AND WE ARE ABLE TO FULLY COVER OUR EXPECTED EXPENDITURES IN THE DEBT SERVICE FUND FOR THIS YEAR.
SO THAT'S OUR EXPECTED OUTCOME FOR DEBT SERVICE.
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AND JUST TO REMIND YOU THAT DEBT SERVICE DOES NOT RECEIVE ANY STATE REVENUE, IT'S FULLY FUNDED BY LOCAL REVENUE AND TAX RATES.OK, ANY QUESTIONS ON 20-21? OK, WE'LL MOVE TO 21-22, SO THIS IS THE EXCITING OUR PROJECTIONS FOR THIS YEAR, WE THIS IS OUR KIND OF FISCAL YEAR, JULY ONE START DATE, AND WHAT OUR EXPECTATIONS WILL BE AS WE MOVE THROUGH THIS FISCAL YEAR, OUR JULY FIRST BUDGET START DATE.
SO WE HAVE TO HAVE OUR BUDGET APPROVED BY JUNE 30TH SO WE CAN START JULY 1ST.
WE ARE ALLOWED TO ADOPT A TAX RATE THAT IS LOWER BUT NOT HIGHER THAN THE ONE THAT WE WILL BE POSTING IN THE NOTICE 21-22 TO GENERAL FUND BUDGET ASSUMPTIONS THAT WE ARE EXPECTING TO BE FULLY OPERATIONAL IN FY 22, TO KIND OF SPEAK TO THOSE REVENUE PROJECTION QUESTIONS EARLIER, WE ARE BRINGING OUR LOCAL REVENUE BACK UP TO HISTORICAL EXPECTED AMOUNTS WITH THE EXCEPTION OF INTEREST INCOME.
AND WE ALSO WILL BE LOWERING OUR LOCAL REVENUE BECAUSE WE ARE OFFERING FREE PRE-K AGAIN THIS YEAR.
SO WE'LL TALK ABOUT SOME OF THOSE, HOW THEY WILL AFFECT US OUR FISCAL YEAR.
RESTATE WHAT YOU SAID, WHAT YOU STARTED OFF WITH YOUR FIRST SENTENCE.
WE WANT TO BRING OUR REVENUES WHAT? OUR REVENUE ITEMS SUCH AS GATE RECEIPTS, RENTALS SUCH AS THE NATATORIUM CONCESSION, LOCAL REVENUE.
THOSE ITEMS WERE REDUCED DUE TO COVID IN THE BUDGET, WE'LL BE BUDGETING OUR FORECASTED NUMBERS BACK TO HISTORICAL LEVELS AS WE ARE ASSUMING TO BE FULLY OPERATIONAL.
BUT THOSE AREAS WHERE WE CUT THE 12 PERCENT.
THAT'S IN OUR EXPENDITURE BUDGET, THOSE 12 PERCENT CUTS ARE WILL BE MAINTAINED GOING FORWARD.
OUR TAXABLE ASSETS VALUE GROWTH IS THREE PERCENT.
WE DID MEET WITH DCAD PRIOR TO THE BREAK AND WE FEEL CONFIDENT TO CONTINUE ON WITH WITH THE THREE PERCENT AND TO HIGHLIGHT OUR MEETING.
IT'S A VERBAL MEETING IN MARCH WITH THE DCAD WHERE THEY GIVE US OUR PROJECTED VALUES.
WE'RE ONE OF THE FEW DISTRICTS THAT'S NOT GOING TO HAVE DECREASED VALUES.
THEY EXPECT WITH THE BUSINESS INDUSTRY THAT THERE'S GOING TO BE QUITE A VIEW IN THE COMMERCIAL INDUSTRY THAT THERE'S TO BE VALUES LOWERED QUITE A BIT.
THE OFFSET FOR US IS GOING TO BE OUR HOUSING MARKET AND SOME OF THE NEW CONSTRUCTION ALONG THE GEORGE BUSH CORRIDOR.
AND SO THEY SAID MARKET VALUES PROBABLY WILL NOT INCREASE AT ALL IN TOTAL.
BUT OUR TAX VALUES, THEY SAID AT THIS TIME, AND THIS IS BEFORE THE DECLINE, YOU KNOW, ROUGHLY FIVE PERCENT.
BUT BY THE TIME WE LAND THROUGH ALL THE PROTEST IN ALL THE SECTORS OF VALUES, WE WILL PROBABLY COME OUT ABOUT THREE PERCENT TAB GROWTH NEXT YEAR.
WE'RE ALSO PRESENTING TO YOU FOUR SCENARIOS, THIS IS A SIMILAR FORMAT THAT WE BROUGHT TO YOU BEFORE.
ONE REASON FOR THAT IS JUST TO GIVE YOU AN IDEA OF THE MANY OR SOME OF THE POSSIBLE EXPECTATIONS.
WHEN WE BROUGHT OUR BUDGET PRESENTATION TO YOU IN THE LAST PRESENTATION, WE WERE USING SCENARIO THREE, A DECLINE OF FIFTEEN HUNDRED ADA BASED ON CURRENT ADA THAT WE'RE SEEING NOW, HAS INCREASED THE PERCENTAGE OF ENROLLMENT AND THEN BASED ON INFORMATION FROM THE DEMOGRAPHER, WE HAVE ADJUSTED OUR OUTCOME TO BRING TO YOU SCENARIO TWO SO WE HAVE A MORE FAVORABLE OUTCOME OF JUST A LOSS OF ONE THOUSAND KIDS.
JUST KEEP IN MIND, IF WE ARE NOT ABLE TO RECAPTURE OUR KINDERGARTEN STUDENTS, OUR K THROUGH FIVE ENROLLMENT THAT WE HAVE LOST, IT COULD PUSH UP INTO SCENARIO THREE OR SCENARIO FOUR.
WE ARE WATCHING THESE FIGURES VERY CLOSELY AND WE'LL KEEP YOU INFORMED OF ANY ALL INFORMATION THAT WE LEARN ARE UNKNOWNS THAT WE'VE MENTIONED EARLIER.
WE ARE WORKING ON TEACHER INCENTIVE ALLOTMENT.
WE'RE FINALIZING OUR INFORMATION FOR THE COHORT WE'LL BE HAVING NEXT YEAR.
SO WE'LL BE ABLE TO BRING YOU THOSE FIGURES AND THOSE IMPACTS IN APRIL.
CCMR WHEN WE CREATED THIS PRESENTATION, WASN'T FINAL, BUT IT IS NOW AND WE THE PRELIMINARY FIGURES ARE IN THE BUDGET AND WE FEEL CONFIDENT WITH THOSE WE DO ARE KEEPING AN OPEN MIND FOR ANY POSSIBLE CHANGES TO FUNDING FORMULAS WITH LEGISLATIVE IMPACT FOR THIS LEGISLATION PROCESS.
AND AS YOU KNOW, OUR PROJECTIONS ARE SUBJECT TO CHANGE AS TEA AND COVID GUIDANCE AND IMPACT COME OUT.
WE'RE GOING TO SHARE WITH YOU SOME INFORMATION ON MINIMUM WAGE INCREASE IN
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KIND OF THE MINIMUM EFFECT THAT COULD HAVE ON US.AND WE WANT YOU TO KEEP IN MIND THAT THIS BUDGET DOES NOT INCLUDE OUR FULLY REPLACEMENT SCHEDULE FOR TRANSPORTATION.
SO IT WAS ABOUT THREE PLUS MILLION PER YEAR.
WE DID NOT ADD ANY FLEET FOR THIS FISCAL YEAR.
THE PROCESS HISTORICALLY HAS BEEN TO EVALUATE THE FLEET NEEDS AND SUPPLY THOSE FUNDS OUT OF BALANCE.
SO WE WANT TO KIND OF BRING THAT TO THE FOREFRONT OF YOUR MIND AS WE GO THROUGH THIS BUDGET PROCESS.
ON THE TRANSPORTATION SIDE LIKE THIS, PROBABLY SOMETHING THAT SHOULD BE LOOKED AT VERY CAREFULLY SINCE WE DID WE DID CUT BACK ON THE TRANSPORTATION THIS YEAR THAT THAT BEING EVALUATED BECAUSE SOME OF THOSE VEHICLES WERE NOT BEING USED.
IT IS JACK YOUNGKIN WITH THE MODELS THEY HAVE AND THE MILEAGE ON THE BUSSES THE ONCE THEY HIT THAT MILEAGE MARK.
AND WHAT YOU'RE SEEING HERE IS WITH THAT PULLED BACK, EVEN SO, EVEN WITH THE PULLBACK, IT'S GOING TO REDUCE FUTURE FISCAL YEARS IN REGARDS TO FLEET REPLACEMENT.
BUT WHAT IS BEING REQUESTED REPLACED IS UNDER THE MODEL OF THOSE BUSSES THAT HAVE REACHED TERM LIFE IN REGARDS TO MILEAGE AND WEAR AND TEAR ON THE VEHICLES.
ON THE CHART YOU JUST SHOWED, PAGE FORTY ONE, THE TEACHER INCENTIVE ALLOTMENT THAT WOULD BE A POSITIVE IMPACT TO THE BUDGET.
WELL, ACTUALLY GOING TO BE A NEGATIVE.
THE REASON IT'S GOING TO BE NEGATIVE IS, THE STATE'S GOING TO FUND US WHAT WE'RE SUPPOSED TO PAY THAT TEACHER.
HOWEVER, IT'S NOT GOING TO COVER ALL THE BENEFITS.
AND SO THERE'S GOING TO BE A SMALL PERCENT THAT DISTRICTS ARE GOING TO HAVE TO PICK UP IN REGARDS TO THAT IMPACT.
WHAT THAT IS, I COULD NOT TELL YOU THAT AT THIS TIME.
YOU KNOW, ONCE THE NUMBERS GET FIRMED UP WITH OUR TEACHERS WHO DO QUALIFY FOR THE TIA AND HR PROJECTS THAT INFORMATION AND WE PUT THAT IN THE BUDGET, AT THAT POINT, WE'LL BE ABLE TO RUN THE CALCULATION AND DETERMINE WHAT THAT NET IMPACT OF THE DISTRICT WILL BE.
BUT IT WILL BE A SMALL NET NEGATIVE.
YOU KNOW WHAT APPROXIMATELY THAT RATIO WOULD BE IF YOU PUT A DOLLAR INTO THE TIA, WHAT WOULD THE PIECE BE FOR US TO PICK UP? NO, YOU KNOW, WHEN WE DO BUDGETS, LET'S JUST SAY WITHOUT TIA, YOU KNOW, WE FACTOR IN ROUGHLY 15 PERCENT FOR BENEFITS JUST TO ACCOUNT FOR IF THEY DO THE TRS ACTIVE CARE.
BUT SO WE I DON'T BELIEVE IT WILL BE NEAR THAT HIGH.
OK, I BET IT WILL BE CLOSE TO JUST A COUPLE PERCENT.
SO GOING DOWN THERE, THE CCMR IS.
BEFORE WE GO TO CCMR I WANT STAY ON TIA.
I ALSO WANT THE BOARD TO KNOW THAT THIS IS GOING TO BE A RETRO PAY.
WE'RE GOING TO HAVE TO PAY IT OUT.
IT'S GOING TO COME OUT OF FUND BALANCE.
SO THEN THEN THE STATE IS GOING TO SEND IT TO US LATER AS A REIMBURSEMENT.
SO WILL IT BE A BUDGET AMENDMENT WHEN IT PAYS OUT? THAT'S A GREAT QUESTION.
WE WILL THERE ARE SOME FACTORS LIKE THAT NOW.
AND SO, FOR EXAMPLE, CCMR 19-20, THE STATE DID NOT PAY US UNTIL NOVEMBER.
WELL, THEY WERE SETTLED UP THIS FISCAL YEAR.
NOVEMBER IS WHEN IT WAS FINALIZED.
IT WILL BE SHOWN AS PROJECTED REVENUES IN OUR BUDGET AND WE WILL BE ABLE TO CLOSE OUT OUR BUDGET SHOWING THAT REVENUES, HOWEVER, WE WON'T HAVE THAT MONEY IN HAND YET.
SO IT'LL BE AN ACCRUAL, BASICALLY.
IT'LL BE AN ACCRUAL BASICALLY, BUT IT WILL SHOW AS REVENUE THAT WE GET TO ACCOUNT FOR FOR THAT FISCAL YEAR.
OK, BUT THERE WILL BE SETTLE UP.
THE CONCERN WITH THAT IS, AS DR.
LOPEZ NOTED, AS WE'VE SEEN WITH THE PAST TWO SESSIONS, THE STATE I DON'T USE IN REGARDS TO MEDICARE, THEY DELAYED PAYMENT FOR THE MEDICARE BY ONE MONTH, WHICH SAVED THE STATE BUDGET.
AND SO ON PAPER, THEY'RE STILL GOING TO PAY THOSE DOLLARS IF THERE'S EVER A BUDGET SHORTFALL.
THE ISSUE WITH THAT IS DISTRICTS MAY NOT RECEIVE THAT MONEY LATER AND IT COULD BE A NEGATIVE IMPACT IN THE FUTURE BUDGETS WHEN THAT DOES OCCUR.
I WANT TO GO DOWN THE LIST, THE CCMR BULLET POINT.
DO YOU DO YOU FEEL LIKE THAT'LL BE A POSITIVE IMPACT OR NEGATIVE? IT IS.
AND ACTUALLY FOR US FOR 19-20, IT WAS A ROUGHLY WE PROJECTED ABOUT 10 1/2 MILLION AND WE CAME IN RIGHT AROUND TWO POINT FOUR.
AND FOR NEXT YEAR THE SAME? THE CURRENT YEAR THAT WE'RE IN NOW, IT'S AROUND IT WAS SETTLED AROUND A LITTLE OVER THREE MILLION DOLLARS, WHICH WE HAD PROJECTED.
OUR TEAM DOES PROVIDE GOOD DATA AND IT HELPS US TREMENDOUSLY ON THE PROJECTION SIDE NEXT YEAR.
THERE'S A LOT OF DISCUSSION HAPPENING AT THE STATE LEVEL RIGHT NOW ABOUT CCMR AND THAT INTERPRETATION.
WE DO BELIEVE IT WILL GO UP AT THIS TIME.
I COULDN'T TELL YOU THAT ANSWER BECAUSE THEY MAY ADD ASSOCIATES DEGREES TO THAT.
THEY MAY TWEAK THE FORMULA AGAIN.
MILITARY WAS ONE THEY PULLED OUT OF THE FUNDING FORMULA BECAUSE THE MILITARY WAS NOT GIVING THEM THE NUMBERS THEY NEED.
AND SO I DON'T BELIEVE IT WILL BE A POSITIVE IMPACT WHEN THAT IS FINALIZED.
AND THEN THE THIRD BULLET POINT, THERE'S NO WAY TO KNOW YET IF IT'S POSITIVE OR NEGATIVE .
WHAT YOU FILL IN THERE, WILL THAT BE A MORE POTENTIAL POSITIVE IMPACT?
[01:20:04]
ON THE SUBJECT TO CHANGE? YES, I BELIEVE IT WILL BE A POSITIVE IMPACT THIS FISCAL YEAR BECAUSE OF THE ADL HOLD HARMLESS ONCE YOU KNOW, RIGHT NOW AS A DISTRICT, IT'S GOING OUR BUDGET WAS BUILT ON FIFTY THOUSAND NINE ZERO SIX ADA.WE'RE TRENDING AROUND FIFTY THOUSAND FIVE HUNDRED.
IF IT WASN'T FOR THE HOLD HARMLESS, WE WOULD HAVE TO GO DOWN FOUR HUNDRED MORE ADA BECAUSE OF THE HOLD HARMLESS.
WE WILL PROBABLY COME IN RIGHT AROUND FIFTY THOUSAND NINE ZERO SIX OR A LITTLE BIT ABOVE FIFTY THOUSAND NINE ZERO SIX.
AND THEN THE MINIMUM WAGE INCREASE IS GOING TO BE EITHER NEGATIVE TO NEUTRAL TO NEGATIVE YOU'LL BE ABLE TO SAY.
IF ANYTHING GOES THROUGH, IT'S A NEGATIVE.
IT'S A POSITIVE FOR PEOPLE GETTING PAID.
IT'S A NEGATIVE FOR PEOPLE GETTING A PAY RAISE, IT'S A NEGATIVE FOR REVENUE VERSUS EXPENDITURE.
WE'RE JUST LOOKING AT OUR NUMBERS.
AND THEN THE THE FLEET WILL BE A BUDGET AMENDMENT IF AND WHEN SOMETHING COMES UP DURING THE YEAR.
AND WORKING WITH JACK YOUNGKIN IN THE FINANCE COMMITTEE, PROBABLY, YOU KNOW, WE DUE TO COVID LAST YEAR, WE HAD THREE MONTHS THAT WE WERE NOT OPERATIONAL, SO IT WAS A HUGE BUDGET SAVE FOR SCHOOL DISTRICTS.
AND SO WITH THAT, WE WILL IN APRIL OR MAY AND WORKING WITH JACK YOUNGKIN, COME BACK TO THE FINANCE COMMITTEE AND THE BOARD TO SEEK APPROVAL FOR A TRANSFER OUT FROM FUND BALANCE TO PROCEED WITH THE FLEET REPLACEMENT.
BECAUSE UNIQUE TO OUR SCHOOL DISTRICT IS WE TRANSPORT KIDS TO THEIR CHOICE.
AND SO THE MILEAGE ON OUR BUSSES IS QUITE A BIT MORE THAN ANY OTHER DISTRICT.
IN THAT WAY, WE'D BE ABLE TO MAINTAIN THOSE BUSSES AND OPERATIONS.
OK, THIS SLIDE REPRESENTS THE RAISE HISTORY, SO THIS IS REQUESTED INFORMATION WE WANTED TO SHARE WITH YOU TO KIND OF SHOW THE RACES AND HOW THEY'VE IMPACTED OUR BUDGET OVER THE LAST SEVERAL YEARS.
THE TOTAL ONGOING M&O ADDS SINCE 16-17.
NOW, THIS EXCLUDES NEW POSITIONS.
THIS IS ONLY THE RAISE DOLLARS.
WE'VE ADDED ABOUT FORTY SEVEN MILLION DOLLARS TO THIS ONGOING COST.
WE WANT TO SHOW YOU ALSO IN 19-20 AS PART OF HOUSE BILL THREE, WHEN THE BASIC ALLOTMENT FOR STUDENTS HAS INCREASED, WE ARE THEN REQUIRED TO INCREASE OUR PAY FOR STUDENTS.
SO THAT WAS A STATE REQUIREMENT.
BUT I DO WANT TO HAPPILY POINT OUT, AS YOU ALL KNOW, THAT WE FAR EXCEEDED THE REQUIREMENT FROM THIS DAY AND MADE AN INVESTMENT IN OUR STAFF AND OUR DISTRICT TO SHOW ABOUT FOURTEEN POINT EIGHT DOLLARS MILLION.
SO IN FY 21, JUST TO LET YOU KNOW, THE AVERAGE RAISES FOR SCHOOL DISTRICTS IN DALLAS COUNTY WAS ABOUT ONE POINT THIRTY TWO PERCENT, WITH FIVE DISTRICTS COMING IN AT BELOW ONE PERCENT.
SO IN FY 21, WE DID GIVE ONE PERCENT RAISE, PLUS MANY AREAS DID RECEIVE SOME EQUITY ADJUSTMENT THERE.
AND WE ALSO GAVE A ONE TIME PAYMENT.
THIS IS INFORMATION WE'VE SHARED WITH YOU BEFORE, JUST THE FORMULA TRANSITION GRANT.
YOU MAY HEAR THIS IN SOME OF YOUR MEETINGS.
THE FORMULA TRANSITION GRANT IS A TOOL FOR HOUSE BILL THREE TO HELP DISTRICTS MAKE THE TRANSITION FROM OLD LAW TO NEW LAW.
WE DID RECEIVE SOME FORMULA TRANSITION GRANT IN 2021.
WE DO NOT EXPECT AT THIS TIME TO RECEIVE ANY FOR 21-22 AS OUR STUDENT POPULATIONS HAVE HELPED US MAINTAIN OUR REVENUE FROM YEAR TO YEAR.
SO THIS IS OUR HISTORICAL AVERAGE ATTENDANCE.
THIS IS THE DETAILS THAT WE THAT SHOWS YOU HOW OUR ATTENDANCE HAS CHANGED EACH SIX WEEKS.
YOU CAN SEE IT'S CYCLICAL AS WE GO THROUGH EACH SIX WEEKS, WHICH IS WHY THAT THOSE FIGURES FROM TEA FOR HOLD HARMLESS IS IMPORTANT FOR US TO KNOW WHAT FIGURES WE ARE TO USE FOR THE FOURTH, FIFTH AND SIXTH SIX WEEKS SO WE CAN GET OUR AVERAGE WITH 2021 WITH THE HOLD HARMLESS FIGURES THAT WE DO KNOW.
WE'RE EXPECTING TO COME IN AT ABOUT FIFTY ONE ONE FIFTY TWO AND THEN 2021 ACTUAL.
YOU CAN SEE AS DR. RINGO, MENTIONED BOARD, ABOUT FIFTY THOUSAND FIVE NINETY SIX.
OUR BUDGET WAS BUILT ON FIFTY THOUSAND NINE ZERO 6, FOR YOUR REFERENCE, SO WE DO EXPECT THE HISTORICAL ARE THE HOLD HARMLESS TO BENEFIT US IN A POSITIVE MANNER.
SO, AGAIN, HERE IS JUST A QUICK REVIEW OF OUR HISTORICAL ENROLLMENT HISTORY, JUST WITH SOME PARTICULAR ATTENTION TO THE K THROUGH FIVE, WHICH IS WHY WE BROUGHT TO YOU THE VARIOUS SCENARIOS.
WE DO EXPECT TO BE AT ABOUT A THOUSAND LOSS IN ADA FOR FY 22 DEPENDENT ON CAPTURING THOSE KINDERGARTEN KIDS ALL ACROSS THE STATE.
[01:25:04]
THERE HAS BEEN THE BIGGEST NEGATIVE IMPACT FROM COVID-19 HAS AFFECTED K THROUGH FIVE, SO WE ARE NOT ALONE IN THAT EXPERIENCE.WE DO HOPE TO SEE THOSE FIGURES RETURN NEXT FISCAL YEAR.
IN TERMS OF THAT DECREASE IN ENROLLMENT ACROSS THE STATE ARE WE SORT OF IN LINE, HAVE WE LOST MORE OR LESS OR IS IT ABOUT THE SAME AS OTHER DISTRICTS? WE'RE ABOUT IN LINE WITH THE K THROUGH FIVE.
MOST DISTRICTS OVER THE STATE OF TEXAS HAVE FELT A SIMILAR REDUCTION IN THAT AREAS, PARTICULARLY WITH OUR KINDERGARTEN STUDENTS.
AND WE'VE SEEN THAT WITH OUR PIEMS INFORMATION FROM ACROSS THE STATE.
THE DEMOGRAPHER SPOKE TO THAT AS WELL.
SO THIS IS JUST FOR YOUR VISUAL, YOU CAN SEE THE FOR EACH GRADE HOW THAT INFORMATION HAS CHANGED THROUGHOUT THE YEARS AND HOW THAT'S AFFECTED US.
JUST FOR A MOMENT, COULD YOU GO BACK TO 40 TO PAGE 42? YEAH.
SO ONE OF THE BIG THINGS ABOUT THE HOUSE BILL THREE WAS THE LEGISLATURE ACTING TO QUOTE UNQUOTE REPLACE THE DOLLARS THAT WERE TAKING OUT OF THE SYSTEM YEARS AND YEARS BEFORE THAT, THE BILLIONS OF DOLLARS.
RINGO, EARLIER, WE ENDED UP GETTING SOMEWHERE AROUND OVER THE TWO YEAR PERIOD OF THE BIENNIUM, ABOUT TWENTY ONE.
TWENTY TWO MILLION DOLLARS EXTRA.
WELL, WAS IT ACTUALLY 21 EXTRA PER YEAR? OK, SO.
OK, BECAUSE THAT'S NOT THE NUMBERS.
I DON'T THINK WE THOUGHT IN THE BEGINNING.
I THINK IT WENT UP A LITTLE BIT.
THAT WAS WHEN THEY CAME THAT WHEN THEY PASSED THAT AND WE RECEIVED THE FINAL LAW IN JUNE THERE WERE TWENTY TWO FUNDING TEMPLATES THAT YEAR, I BELIEVE.
AND SO WE DID WHAT WE KNEW AT THAT TIME.
AND AS WE WENT THROUGH THAT YEAR, THAT'S WHEN THEY WOULD GO BACK TO THE AUTHORS OF THE BILL AND ASK WHAT THEIR, WHAT THEY MEANT.
AND FORMULAS KEPT GETTING TWEAKED AS WE PRESENTED THROUGH THOSE MONTHS OF DIFFERENT FUNDING FACTORS AND THAT IMPACT ON THE BUDGET.
AND SO WE ORIGINALLY THOUGHT IT WAS GOING TO BE ABOUT 18 MILLION.
AND THEN AS FUNDING FACTORS DID GET TWEAKED AND WITH OUR ADA, IT WAS ROUGHLY AROUND TWENTY TWO MILLION IN APPLES TO APPLES COMPARISON PER YEAR, TIMES TWO.
IF IT WAS NOT FOR HOUSE BILL THREE, WE WOULD HAVE HAD ABOUT TWENTY TWO MILLION LESS IN THE BUDGET LAST YEAR.
SO IT SEEMS LIKE THEY ACCOMPLISHED WHAT THEY SAID THEY WERE GOING TO COMPRESS THE RATES AND BRING THE X BILLION DOLLARS BACK TO THE SCHOOL DISTRICTS TO SOME EXTENT.
AND I THINK WHAT THIS SLIDE SHOWS IS THE MAIN THING THEY WANTED US TO DO, WE WERE REQUIRED TO DO IS PUT A SIGNIFICANT AMOUNT OF THOSE DOLLARS INTO TEACHER SALARIES.
SO THAT'S THE SLIDE, THE 19-20 DOLLARS, RIGHT? YES, SIR.
AND THAT'S GREAT COMMENT, AS YOU CAN SEE OF THAT REQUIREMENT.
IT WAS TEACHERS, LIBRARIANS, COUNSELORS AND NURSES.
AS WE WENT TO THAT BUDGET BUILD PROCESS, IT WAS THE MORE EXPERIENCED, THE BIGGER THE RAISE.
AND YOU CAN SEE OUT OF THAT 14, IF WE WERE TO EXCLUDE BUS DRIVER PAY IN GENERAL, BECAUSE THAT WAS YOU KNOW, WE WERE VERY SHORT STAFFED BUS DRIVERS, BUT THAT WAS A BULK OF OUR RAISES THAT FISCAL YEAR.
SO ABOUT TWO THIRDS OF THE DOLLARS WE GOT WENT INTO RAISES FOR STAFF.
WELL, THIS IS JUST ANOTHER VISUAL REPRESENTATION OF OUR ADA HISTORY AND PROJECTIONS, AND NOW AS WE MOVE THROUGH THE YEAR AND SHOW YOU OUR SCENARIOS, THIS IS OUR CURRENT GENERAL FUND RECOMMENDATIONS.
THIS IS THE SAME INFORMATION THAT WE BROUGHT TO YOU PRIOR.
I DO WANT TO POINT OUT THERE ARE TWO ITEMS HERE THAT ARE NEW THERE ARE SOME NETWORK SUPPORT, CISCO TICKET SYSTEMS, CYBER SECURITY INFORMATION, AND THEN INCREASE DAYS FOR BUS DRIVER POOL.
THOSE ARE NEW ITEMS SINCE WE LAST SPOKE.
WE WILL BE AS WE COME BACK IN JULY, THERE COULD BE SOME CHANGES TO THIS LIST AND WE'LL BE BRINGING THAT INFORMATION TO YOU.
JUST TO NOTE, WE ARE REVIEWING SOME NON PAYROLL REDUCTIONS RIGHT NOW THAT WERE BROUGHT THROUGH CABINET THAT COULD OFFSET SOME OF THESE EXPENDITURES.
WE'LL BE GLAD TO LET YOU KNOW AS THAT OCCUR WHEN WE GO THROUGH INTO APRIL, MR. GLICK.
ON THE THE DOLLARS YOU'RE SHOWING FOR THE PRE K, DR.
I GUESS, DR. LOPEZ, ALSO TO YOU.
ARE WE CONTEMPLATING GOING NOT UNIVERSAL, BUT HAVING FULL DAY NEXT YEAR, TOTALLY FULL DAY OR STILL GOING TO BE A HYBRID NEXT YEAR? WE WILL NO LONGER HAVE A HYBRID AND WE WILL BE A FULL DAY PRE-K THROUGHOUT THE
[01:30:05]
DISTRICT.AND ONCE THE ENROLLMENT PERIOD IS JUST GOING TO BEGIN AND THE EXTRA SEATS LIKE WE DID THIS YEAR WILL BE GIVEN TO THE GENERAL PUBLIC REGARDLESS OF INCOME.
SO THERE WILL POTENTIALLY, I THINK YOU'RE SAYING BE UNIVERSAL NEXT YEAR.
I DON'T WANT TO COMMIT TO IT UNTIL WE HAVE.
BUT THERE'S A GOOD POSSIBILITY THAT WE'LL HAVE OPEN SEATS.
SO ALL OF OUR EXISTING PRE-K WILL BE FULL DAY WITH THE POSSIBILITY OF UNIVERSAL BASED ON ENROLLMENT.
WHAT ARE WE CALLING UNIVERSAL? UNIVERSAL MEANS THOSE MS. GRIFFIN, THOSE PEOPLE WHO WOULD NOT NORMALLY BE ELIGIBLE FOR PRE-K, MEANING ANYBODY IN THE DISTRICT COULD.
SO WHEN WE SAY WE'RE GOING TO HAVE ALL OUR PRE-K WILL NOW BE FULL DAY.
HOW MANY LOCATIONS IS THAT AND WHAT IS THAT PROJECTED NUMBER OF STUDENTS OR IS THAT WHAT WE'RE WORKING ON? SO I THINK WE HAD ONE OF THE PROJECTIONS ON ON THE PRE-K, BUT I BELIEVE IF WE CAN I DON'T HAVE THAT OFF OF HAND.
I GUESS WHAT I'M TRYING TO SAY IS I THINK WE JUST NEED TO CLARIFY IS NOT THAT PRE-K IS GOING TO BE AT EVERY ELEMENTARY SCHOOL.
NO, THERE'S NO WAY WE WOULDN'T HAVE 72 SITES.
I THINK THAT THAT'S WHY I WAS THE CLARITY OF UNIVERSAL, UNIVERSAL, UNIVERSAL IS JUST QUALIFICATION.
SO IF WE HAVE A SATELLITE CAMPUS THAT WOULD BE ABLE TO GO IN IF WE OFFERED UNIVERSAL, THEY WOULD GO IN WITH NO MANDATORY QUALIFICATIONS.
AND BASICALLY TO US, MOVING FROM HALF-DAY TO FULL DAY IS OUR EXISTING HALF DAY PROGRAMS WILL NOW BECOME FULL DAY PROGRAM.
SO THE THE 18 PRE-K TEACHERS AND THE 18 PRE-K PARA PROFESSIONALS, THOSE ARE ALL NEW POSITIONS, IS THAT CORRECT? THAT'S THE ADD FOR EXPANSION.
THERE SHOULD BE THE THE NEXT LINE OF EXPANSION.
AND THAT'S EXACTLY WHAT THAT IS.
NOT EXCLUDING WHAT WE ALREADY HAVE.
OK, AND JUST TO SPEAK TO THAT POINT THERE, THAT NUMBER COULD CHANGE AS WE GO INTO APRIL BY ONE OR TWO.
I KNOW THEY'RE STILL DOING SOME DETAILED ANALYSIS ON HOW THAT PROGRAM WILL WORK, BUT WE'LL BRING YOU THOSE FIGURES.
SO BASED ON PLANNING, AS WE'VE GONE THROUGH THIS FISCAL YEAR, AS A YOU KNOW, AFTER NOVEMBER, WE IMPLEMENTED OUR 12 PERCENT NON PAYROLL CUTS THAT WE PRESENTED EARLIER.
AND WE'LL TALK ABOUT OUR KIND OF PLANNING STRATEGY AS WE GO THROUGH THESE SLIDES.
BUT ONE OF THE EXAMPLES THAT WE WANT TO SHARE WITH YOU ARE SOME TASB DISTRICT STAFFING ADJUSTMENTS.
SO THESE ARE SOME AREAS OF REVIEW.
THESE ARE BASED ON RECOMMENDATIONS FROM TASB THAT WE HAVE RECEIVED IN THE PAST.
SO RIGHT NOW, WE ARE SHOWING TOTAL ESTIMATIONS TO REDUCE FOR STAFFING ADJUSTMENTS TO BE ABOUT 10 MILLION DOLLARS.
AND TO HIGHLIGHT ON THAT WORK WITH DR.
THIS IS JUST THE BASELINE AS WE GO THROUGH MARCH AND COME BACK IN APRIL.
WE DO BELIEVE, BASED ON FEEDBACK, THIS NUMBER WILL GO UP.
AND EVEN WITHIN THE DEPARTMENTS, THE AUXILIARY STAFF, AS YOU CAN SEE HERE, WE ALSO BELIEVE THAT NUMBER WILL GO UP.
BUT THIS WAS THE BASELINE OF DISCUSSIONS IN FEBRUARY.
BUT AS WE AS WE GO THROUGH THE BUDGET PROCESS AND ALLOCATIONS FOR NEXT YEAR, H.R.
WILL GIVE US THAT FEEDBACK TO SAY, HERE'S THE NUMBER WE BELIEVE WE'LL BE ABLE TO GET TO.
WHEN I SAY GO UP, THE REDUCTION NUMBER WILL GO UP.
BEFORE WE GET TOO FAR INTO THE STAFFING BACK ON 48, SO RIGHT NOW WE'RE SAYING THAT THESE ARE ALL THE NEW PROGRAMS THAT WE ARE RECOMMENDING FOR THE NEXT SCHOOL YEAR.
SO AND JUST TO KIND OF LET YOU KNOW, THE ORACLE ERP UPGRADE, THAT'S THE SECOND PART OF THAT.
WE BEGAN THAT IN THIS FISCAL YEAR AND WIRELESS HOT SPOTS WAS ALSO PRESENTED LAST FISCAL YEAR.
THIS IS AN ONGOING JUST PART OF THAT.
SO THAT'S ONLY HAS ONE MORE YEAR.
SO BASICALLY FROM EVERY FROM THE SUPERINTENDENTS AND THE EXECUTIVE TEAM RIGHT NOW, THESE ARE OUR MAJOR ADD ONS FOR NEXT YEAR.
AND THESE, AS YOU SAY, OUR FORECASTED FIGURES IN THE FUTURE SLIDES.
THESE NUMBERS ARE CURRENTLY INCLUDED IN THOSE NUMBERS.
[01:35:01]
AS WE TALKED ABOUT EARLIER, SO AS WE MOVE.GOING BACK TO YOUR SLIDE FORTY NINE.
WITH THE PAC FACILITY EVALUATION I NOTICED THAT YOU ONLY FOCUSED ON THIS HAS BEEN AN AGING FACILITY, BUT THERE MIGHT BE SOME ADDITIONAL THINGS AS PART OF THE EVALUATION TO SUPPORT THE NEEDS OF STUDENTS GOING FORWARD.
DO YOU FORESEE ANY IMPACT OF STAFFING AS A RESULT OF THAT? SO THESE FIGURES I THINK THAT'S A VERY GREAT QUESTION.
I'M GLAD THAT YOU HIGHLIGHTED THAT THIS IS ONLY REGARDING THE FACILITY.
SO THERE'S A SECOND CONVERSATION I THINK YOU'RE ALLUDING TO WITH THE OVERALL PROGRAM THAT IS CURRENTLY BEING EVALUATED.
AND THERE COULD BE SOME ADDS TO COME BACK IN BASED ON THE OVERALL PROGRAM FOR THOSE STUDENTS, THIS SIMPLY ADDRESSES THE AGING FACILITY AND WORK THAT WE'VE GONE THROUGH TO DETERMINE THAT.
I WAS JUST ASKING THAT QUESTION BECAUSE DR.
RINGO HAD MENTIONED THAT THAT BASELINE MIGHT INCREASE AS A RESULT OF WHAT GOES ON.
SO THAT MIGHT OFFSET THAT TO SOME DEGREE.
THE OVERALL INVESTMENT IN THE PROGRAM AND INTO THAT STUDENTS COULD OFFSET THOSE SAVINGS THERE.
AND WE'LL BE BRINGING THAT INFORMATION TO YOU AS THE ANALYSIS IS COMPLETE.
THANK YOU SO MUCH FOR HIGHLIGHTING THAT.
AND SO AS WE TALKED ABOUT BEFORE, SO AS WE MOVE INTO A POST COVID ERA, WHICH IS VERY EXCITING, THERE ARE SOME AREAS THAT COULD IMPACT OUR BUDGET.
RIGHT NOW WE HAVE KEPT OUR IN-HOUSE DISINFECTING STAFF 55 POSITIONS THAT WERE AS RELATED TO COVID FOR THIS FISCAL YEAR IS CURRENTLY IN OUR FUTURE BUDGET.
AND THE MILLION DOLLAR FOR PLEXIGLASS IS CURRENTLY IN OUR FUTURE BUDGET AS THOSE NEEDS DECLINE.
AND WE DO NOT NEED TO FUND COVID IN THAT WAY GOING FORWARD.
WE WILL COME BACK AND WANT TO REVIEW THESE AREAS AS POSSIBLE SAVES TO OUR BUDGET.
ONE THING JUST TO MAKE NOTE OF WHEN WE BEGAN CREATING THE BUDGET THIS AT THIS POINT IN TIME AND THE YEAR WHEN WE DON'T KNOW, WE HAVEN'T BEEN THROUGH ALL OF OUR RECOMMENDATIONS, WE DO HOLD A PLACE OF ABOUT ONE POINT FIVE PERCENT FOR CONTRACT PROJECTION INCREASES AS WE BEGIN TO SETTLE ON OUR BUDGET RECOMMENDATIONS AND THE TRUE ADDS THAT ONE POINT THREE MILLION WILL COME OUT AND OFFSET.
SO WE DO HAVE A PLACEHOLDER THERE BECAUSE WE DO EXPECT THERE TO BE SOME ADD.
SO WE'LL TALK ABOUT HOW THAT AFFECTS THE BUDGET ONCE WE COME WITH THOSE SOLID RECOMMENDATIONS AND THAT AMOUNT COMES OUT.
BUT THAT'S A DEFINITELY A PLANNING TOOL.
AND THEN WE'RE WORKING ON OPERATIONAL EFFICIENCY AND ANALYSIS.
AND SO THAT WILL BE COMING LATER.
SO TOTAL ESTIMATES FOR POTENTIAL BUDGET IMPACT AT THIS POINT COULD BE ABOUT THREE POINT EIGHT MILLION DOLLARS.
THAT COULD COME OFF OF THESE NUMBERS AS WE GO THROUGH.
SO IN TIER ONE FOR 21-22, WE ARE CARRYING FORWARD OUR PROGRAM NON PAYROLL REDUCTIONS OF SEVEN POINT FIVE MILLION DOLLARS THAT WE PRESENTED EARLIER.
WE ARE CONSIDERING THE TASB STAFFING RATIO ADJUSTMENTS.
AND AS DR. RINGO ALLUDED TO, THAT NUMBER COULD INCREASE BASED ON ANALYSIS.
WE ARE STILL WORKING ON A BUDGET PROGRAM, EVALUATIONS THAT ARE GOING TO BE RECEIVED GOING FORWARD AND THAT WE'LL BRING TO YOU IN APRIL AND THEN TOTAL ESTIMATED REDUCTIONS WILL BE AVAILABLE IN APRIL.
SO WE WILL BE BRINGING THOSE FIGURES TO YOU THEN.
BUT WE JUST WANT TO REALLY HIGHLIGHT THAT THE GOAL IS NOT TO IMPACT OR FURTHER IMPACT OUR PROGRAMS. WE AND WHEN WE GET A LITTLE BIT DOWN, I'LL TALK TO YOU.
WE HAVE A WE'LL SHOW YOU KIND OF THE CRITERIA THAT WE ARE USING TO DETERMINE POSSIBLE OR POSSIBLE ITEMS TO REDUCE.
SO WE'LL SHARE THAT INFORMATION WITH YOU SO YOU CAN HAVE AN IDEA OF THE THOUGHT PROCESS, THE TIER TWO PLANNING FOR FISCAL YEAR 22-23 IF THERE ARE NO INCREASES IN REVENUE, WE WILL BE REVIEWING FURTHER PROGRAM REDUCTIONS, FURTHER STAFFING REDUCTIONS AND FREEZING SALARIES AND POSITIONS.
AND WE'LL BRING YOU THAT INFORMATION AS WE MOVE THROUGH THE PROCESS.
SO OUR GENERAL FUND SCENARIOS FOR 21-22, SO THE FIRST COLUMN REPRESENTS WHERE WE ARE NOW IN OUR CURRENT BUDGET FOR 2021 FOR COMPARISON PURPOSES.
SO AS I MENTIONED BEFORE, WE ARE GOING TO BE SPEAKING GOING FORWARD ABOUT THE LOSS OF ONE THOUSAND ADA SO WE COULD DRAW YOUR ATTENTION TO THAT COLUMN.
BUT WE DO WANT YOU TO HAVE THE VISUAL IDEA TO SEE BECAUSE OF COVID AND A LOT OF THE UNKNOWNS THAT WE'RE EXPERIENCING, WE DO WANT TO BE SURE THAT WE'RE SHARING WITH YOU ALL THE INFORMATION.
[01:40:01]
SO RIGHT NOW, BASED ON THIS BUDGET FOR 21-22, THIS DOES CONTINUE WITH THE 12 PERCENT REDUCTIONS.AND THIS DOES IT HAS TAKEN AWAY THE ONE TIME ADS THAT WE SPOKE ABOUT EARLIER.
AND THE CURRENT BUDGET DEFICIT SHOWN THERE IS ABOUT 29 MILLION DOLLARS.
KEEP IN MIND THAT THIS IS IF THE DISTRICT EXPANDS EVERY DOLLAR.
AND AS WE DO KNOW, WE DO HAVE SEEN SOME HISTORICAL PAYROLL SAVES.
SO WE'LL KIND OF TALK ABOUT HOW THAT MAY AFFECT THAT NUMBER AS WE GO FORWARD.
I ALSO WANT TO DRAW YOUR ATTENTION.
YOU'LL SEE THE BLUE THERE'S A BLUE HIGHLIGHTER AROUND STATE REVENUE.
YOU CAN SEE THAT HOW THAT LOSS IN ADA AFFECTS THE STATE REVENUE EVERY SINGLE COLUMN YOU GO DOWN.
SO THAT'S DIRECTLY WHERE WE ARE AFFECTED.
SO THIS IS OUR REVENUE BREAKDOWN AND THIS IS A DIRECT VISUAL, AS DR.
RINGO MENTIONED BEFORE, HOW WE HAVE OUR SEESAW EFFECT.
SO AS LOCAL REVENUE INCREASES, STATE REVENUE DECREASES.
SO YOU CAN SEE FROM 20-21 TO 21-22, LOCAL REVENUE WENT FROM 42 PERCENT TO 43 PERCENT AND STATE REVENUE WENT FROM 56 PERCENT TO 50 PERCENT.
SO AS LOCAL REVENUE INCREASES, STATE REVENUE DECREASES.
SO JUST BECAUSE WE RECEIVE MORE LOCAL REVENUE DUE TO HIGHER PROPERTY VALUES DOES NOT MEAN WE RECEIVE OVERALL REVENUE.
THE ONLY WAY TO GENERATE OVERALL REVENUE IS AN INCREASE IN ADA AND AN INCREASE IN THE TAX RATE.
AND MR. SELDERS, I WANTED TO GO BACK TO YOUR QUESTION, THE FIRST PART ABOUT THE BALLOT LANGUAGE.
SIMILAR TO THE STATE MAKING IT MORE DIFFICULT TO PASS BOND PROGRAMS AND TO EASE THE STATE, IS ALSO RELIED ON LOCAL PROPERTY TAXPAYERS TO FUND OTHER PARTS OF THE STATE BUDGET.
SO IS OUR LOCAL REVENUES GO UP.
THE STATE PULLS THAT MONEY BACK TO PUT IN OTHER PARTS OF THE STATE BUDGET TO SUPPORT OTHER PROGRAMS. AND SO THAT'S YOU KNOW, WE MAY HEAR THAT THEY WANT TO FREEZE OUR PROPERTY VALUES.
BUT IF THAT WERE TO OCCUR, THE STATE BUDGET COULD NOT MAKE AND NOT WORK.
OK, AND JUST MOVING ON, THIS GIVES YOU OUR VISUAL OF PAYROLL VERSUS NON PAYROLL, SO FOR 21-22, WE'RE SHOWING OUR PAYROLL TO BE ABOUT EIGHTY FOUR PERCENT OF OUR BUDGET AND NON PAYROLL IS ABOUT 16 PERCENT OF OUR BUDGET.
SO THIS VISUAL IS REALLY IMPORTANT.
WE ALSO WANT TO SHARE WITH YOU THIS IS ANOTHER WAY TO LOOK AT IT, WHICH DR.
RINGO I THOUGHT THIS WAS BRILLIANT.
SO AS YOU CAN SEE HERE, THIS IS A GREAT VISUAL REPRESENTATION OF A DOLLAR AND THE PORTION OF A DOLLAR THAT OUR PAYROLL REPRESENTS.
AND YOU CAN SEE ON OUR NON PAYROLL SIDE, WHICH IS IT'S VERY SMALL.
THERE ARE UTILITIES ARE ALSO CAPTURED THERE, WHICH, AS YOU KNOW, OUR UTILITIES ARE NON-NEGOTIABLE BECAUSE WE NEED OUR LIGHTS ON AND WE NEED OUR ELECTRICITY TO RUN.
SO THERE'S A PORTION OF OUR NON PAYROLLS UTILITIES, WHICH IS NON-NEGOTIABLE.
AND THEN ANOTHER PART OF THAT DOLLAR THAT IS NOT REPRESENTED THERE IS OUR FUEL TO RUN OUR TRANSPORTATION, WHICH IS ALSO NON-NEGOTIABLE.
SO IT BEGINS TO CUT OUR NON PAYROLL PIECE OF THE PIE DOWN VERY A LOT.
SO THAT IS JUST A GREAT VISUAL REPRESENTATION FOR YOU TO SEE.
RINGO MENTIONED EARLIER, WE DO HAVE OUR FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS.
IT DOES WE DO NEED A THREE YEAR CHANGE IN FUND BALANCE.
RINGO KIND OF ALLUDED TO THAT EARLIER AND HOW WE NEED TO MAINTAIN THE FUND BALANCE AND HOW THAT'S IMPORTANT TO THE STATE LEGISLATOR CONVERSATIONS ABOUT SCHOOL DISTRICTS FUND BALANCES AT THIS TIME AND GENERAL FUND REVENUES MUST BE EQUAL OR EXCEED EXPENDITURES.
SO GENERAL FUND SCENARIOS AND TASB RECOMMENDATION ADJUSTMENTS, SO THIS IS JUST TO KIND OF SHOW YOU AND KEEP IN MIND, THIS IS WITH OUR REDUCTION OF A THOUSAND OF ADA, AS WE SHOULD BEFORE.
PROJECTED REVENUES WITH PAYROLL, NON-PAYROLL IS CUT ALREADY BY 14 MILLION FOR PRIOR TWO YEARS AND THEN PROJECTED EXPENDITURES.
WITH AN OPERATIONAL DEFICIT OF 19 MILLION.
SO THIS DOES REFLECT THE TEN MILLION DOLLARS BASE H.R.
PROJECTION AND STAFFING REDUCTIONS.
BUT THIS DOES NOT INCLUDE ANY PAY RAISES, ANY ONE TIME PAYMENTS, ANY TIA OR ANY AVERAGE PAYROLL SAVES DUE TO VACANCIES.
SO WITH THE REDUCTIONS, WE'D BE AT ABOUT 19 MILLION DOLLARS AND THEN WITH ANY PAYROLL SAVES, IT WOULD FURTHER IMPACT THAT FIGURE.
JUST A CLARIFICATION ON THE PROJECTED REVENUES, YOU'RE GOING OFF THE ADA, WHICH WAS SCENARIO 2.
WITH THE THOUSAND A THOUSAND LOSS IN ADA.
[01:45:04]
YES, SIR.MR. MILLER, I WANTED TO HIGHLIGHT THAT PORTION OF THE ADA QUESTION WITH OUR DEMOGRAPHER.
AS WE SAW OUR K THROUGH FIVE NUMBERS AND WHAT'S HAPPENING SIX THROUGH 12, WHICH IS VERY REFLECTIVE ACROSS THE STATE AND NOT UNIQUE TO GARLAND ISD.
IF WE FOLLOW THAT SAME MODEL, IT WOULD BE ABOUT A POTENTIALLY BE ABOUT A THOUSAND LOSS ADA BECAUSE WE'RE LOSING A ROUGHLY 600 MORE KIDS JUST BASED ON GRADUATION ALONE OFF CURRENT NUMBERS, MEANING OUR SENIOR GRADUATING CLASS IS ABOUT 600 HIGHER THAN OUR INCOMING KINDERGARTEN CLASS.
AND SO, YOU KNOW, HOPEFULLY POST OR OPERATING IN COVID WITH BETTER SCENARIOS UNDER COVID THOSE NUMBERS DO COME UP, WHICH WOULD IMPROVE THAT THOUSAND ADA SCENARIO.
BUT LET'S JUST SAY OUR KINDERGARTEN NUMBERS DROP EVEN FURTHER.
THAT 1000 ADA DROP COULD INCREASE TO MORE.
THAT'S WHY WE SHOWED THE OTHER SCENARIOS OF 15 HUNDRED AND TWO THOUSAND LESS ADA.
DO YOU THINK THE UNIVERSAL OPENING OF PRE-K THEN SHOULD BE HELPFUL? I BELIEVE.
AS PARENTS, ONCE KIDS AND WE'VE SHOWN THIS ONCE KIDS ARE IN OUR SYSTEM, THEY STAY WITH US.
AND SO IF A KID GETS IN OUR SYSTEM, IN PRE-K, THEY'RE GOING TO AS HISTORY SHOWS ITSELF BY GRADE LEVEL TRACKING OF COHORTS.
AND SO THAT IS A POSITIVE FOR THE DISTRICT.
SLIDE 58 SHOWS A REPRESENTATION OF SOME POSSIBLE RACE SCENARIOS THAT COULD BE CONSIDERED.
SO THIS IS JUST SOME INFORMATION BY SOME PERSON.
THIS DOES INCLUDE SOME ESTIMATED BENEFITS, AND THIS IS BASED ON CURRENT STAFFING LEVELS.
SO ANY OF THESE CONSIDERED WOULD BE ADDED ON TOP OF THE EXPENSES THAT YOU'VE SEEN IN THE PRIOR SLIDES.
AND HERE IS A REPRESENTATION OF WHAT THAT MIGHT LOOK LIKE.
JUST REFRESH OUR MEMORY STAFF, WHAT'S OUR TOTAL STAFF NUMBERS.
WE HAVE ABOUT SEVENTY FIVE HUNDRED STAFF.
THAT INCLUDES ALL FUNDS AS WELL.
THIS IS JUST A REPRESENTATION OF THE GENERAL FUND.
THE OTHER FUNDS WOULD BE EXPECTED TO CARRY THESE PERCENTAGE GROWTHS.
SO THIS IS WHAT THAT IMPACT WOULD LOOK LIKE.
SO THIS IS OUR AGAIN, WITH OUR ONE THOUSAND LOSS IN ADA REPRESENTATION HERE OF THE 19 MILLION DEFICIT THAT WE SHOWED A FEW SLIDES OF.
SO THIS IS WHAT THAT WOULD LOOK LIKE IF WE WERE TO ADD THE VARIOUS PERCENTAGES AND WHAT THAT OVERALL IMPACT TO FUND BALANCE, COULD BE.
NOW, PLEASE KEEP IN MIND, THIS DOES NOT INCLUDE THE SAVINGS THAT WE SEE HISTORICAL FROM SALARY SAVES.
ALSO, WE NEED TO UNDERSTAND THAT EACH OF THESE ARE CARRY ONS FOREVER.
SO THIS IS NOT A ONE TIME HIT.
THIS WOULD BE SOMETHING THAT WOULD BE ONGOING FOR EVERY YEAR TO COME.
AND AS WE SHOWED IN THAT RAISE IMPACT SLIDE THROUGH HISTORY SINCE 16-17, WE'VE ADDED ABOUT FORTY SEVEN MILLION DOLLARS TO THE BUDGET ONGOING FOR RAISES.
SINCE WE'RE GETTING READY TO TRANSITION.
DO BOARD MEMBERS FEEL WE NEED A BREAK.
I FEEL PRETTY CONFIDENT THAT WE WILL FINISH IN TIME, SO IF ANYONE FEEL LIKE WE NEED A BREAK RIGHT NOW, YOU WANT TO KEEP GOING.
AND AS WE SAW WITH COVID IT'S THE FIRST TIME THERE HAS BEEN A STATEWIDE DISASTER DECLARATION AND WITH A DISASTER DECLARATION, THERE ARE M&O CONSIDERATIONS FOR TAX YEAR 2021, WHICH IS NEXT FISCAL YEAR.
SO WHEN YOU HEAR TAX YEAR 20-21, THAT IS OUR 21-22 FISCAL YEAR OF HOW THOSE WAS ALIGN.
IT SEEMS LIKE IT'S DIFFERENT YEARS, BUT IT'S NOT.
AND SO WHEN THERE'S A DISASTER DECLARATION FOR A TWO YEAR PERIOD FOLLOWING THE DATE OF THAT DECLARATION, A DISTRICT MAY RAISE ITS ANNUAL TAX RATE UNDER THIS LAW, UNDER CURRENT LEGISLATION TO INCREASE REVENUE TO HELP SUPPORT THE DISTRICT OPERATIONS, THAT EXTRA REVENUE IS ONLY GOING TO BE VALID FOR THAT YEAR THE RATE IS INCREASED.
IT DOES NOT GENERATE REVENUE ANNUALLY ONGOING.
IT'S ONLY FOR THE YEAR IT IS DONE.
SO WHAT DOES THAT MEAN? IT'S NECESSARY TO RESPOND TO A DISASTER.
HOWEVER, IT STILL IS CAPPED WITH THE AVAILABLE PENNIES A SCHOOL DISTRICT ACCESS.
SO THAT'S EIGHT GOLDEN PENNIES, WHICH WE ALREADY HAVE FIVE.
[01:50:03]
SO IT'D BE THREE ADDITIONAL GOLDEN PENNIES AND THE NINE COPPER PENNIES AND IT GENERATES ADDITIONAL MONEY FOR THE STATE ON THERE END HAS TO KICK IN THAT ADDITIONAL REVENUE, WHICH WE WILL SEE SHORTLY.THERE IS LEGISLATION OUT THERE TO CHANGE THE LAW AND STOP THIS BECAUSE THE STATE KNOWS THAT THEY CANNOT AFFORD THAT.
IF EVERY DISTRICT WERE TO RAISE ITS TAX RATE TO SUPPORT OPERATIONS FOR A YEAR BECAUSE IT WOULD FURTHER INCREASE WHAT THE STATE MUST EXPENSE FOR PUBLIC EDUCATION THAT THEY DO NOT HAVE IN THE BUDGET UNLESS THEY TOOK IT OUT OF STIMULUS FUNDING.
THE OTHER COMMENT THROUGH THOSE DISCUSSIONS COULD BE THEY LOOK AT THE ADDITIONAL RELIEF FUNDING THAT IS IN PLACE AND SAY WE IF WE ALLOW THIS, WE COULD JUST ALLOCATE THOSE DOLLARS FOR DISTRICTS TO DO THIS FOR ONE YEAR.
SO THERE'S A NUMBER OF SCENARIOS THAT COULD PLAY OUT WITH RELIEF MONEY FOR DISTRICTS FOR ONE TO TWO YEARS.
THE PENNIES THAT WE'RE TALKING ABOUT, THOSE ARE ONLY IF YOU HAVE THE CAPACITY FOR THOSE PENNIES.
UNDER CURRENT LEGISLATION, THERE IS A LOT OF DISCUSSION IN AUSTIN ABOUT THIS BECAUSE THE STATE KNOWS IF THERE WEREN'T ADDITIONAL DOLLARS, FOR EXAMPLE, WITH THE RELIEF FUNDING THEY COULD NOT AFFORD THIS.
THE QUESTION WAS THOSE DISTRICTS THAT ARE AT THE MAX ALREADY, THEY COULD NOT AVAIL THEMSELVES OF THIS.
AND SO DISASTER PENNIES JUST TO HIGHLIGHT AGAIN, THEY ARE NOT PERMANENT.
IT ONLY APPLIES TO THAT FISCAL YEAR IT'S DONE.
AND THEN THE TAX RATE OF THAT DISTRICT WOULD BE LOWERED BACK DOWN TO WHAT IS ONLY LEGALLY ALLOWED BY LAW.
AND WHAT DOES THAT MEAN FOR US.
RICK? CAN I ASK YOU A QUESTION.
DO YOU FEEL LIKE THE STATE WOULD BE ABLE TO AFFORD THE DISASTER PENNIES TO EVEN SCHOOL DISTRICTS BECAUSE OF THE WAY THAT THEY WORDED THE TRE FOR MOST DISTRICTS, IT FAILED IN THE FALL THAT ARE GOING TO COME BACK AND PROBABLY GO AFTER THE SAME DISASTER PENNIES.
AND NOW THEY'RE SAYING THEY'RE GOING TO HAVE A BUDGET SHORTFALL DOWN THERE.
WHAT WHAT YOUR FEELINGS THERE.
I MEAN, IT SEEMS LIKE IT'S VERY DIFFICULT.
WITHOUT THE RELIEF FUNDS BEING APPLIED TO THIS, I DON'T SEE THEM KEEPING DISASTER PENNIES IN LEGISLATION BECAUSE THE STATE CAN'T AFFORD IT.
IF THEY SAY WE'RE GOING TO TAKE WHAT'S BEEN ALLOCATED TO PUBLIC SCHOOL DISTRICTS AND USE IT FOR DISASTER PENNIES, I DO SEE THE STATE SAYING WE WILL ALLOW DISTRICTS TO GO AFTER DISASTER PENNIES FOR ONE YEAR.
AND HERE'S HOW MUCH IT WOULD PROBABLY IMPACT THE STATE BUDGET AND THEY WOULD JUST ALLOCATE THOSE RELIEF FUNDS FOR THIS FOR THAT ONE YEAR.
I STILL SAY THEY'RE GOING TO GO BACK AND MAKE US TRY TO GO AFTER A RESERVE FUND.
AND AS MR. BEACH NOTES, THE STATE, WE'VE HEARD IT FROM STATE REPS DIRECTLY IN PERSON AND ON THE PHONE.
THEY HAVE TOLD US IF YOU WANT ADDITIONAL MONEY, YOU MUST GO TO YOUR TAXPAYERS.
BUT THE PROBLEM WITH THAT IS THEY CHANGE LEGISLATION TO MAKE THAT MORE DIFFICULT AS WE SAW WITH THE LAST ROUND OF BOND PROGRAMS AND TRE ELECTIONS, IT DROPPED THE PASSING RATE DROPPED 30 TO 40 PERCENT ACROSS THE STATE.
THE REASON I WAS MAKING THE POINT I TRIED WAS THAT YOU CAN SEE THOSE DISTRICTS THAT ARE ALREADY AT THEIR MAX ON M&O CRYING UNFAIR BECAUSE THOSE DISTRICTS LIKE US WOULD BE ABLE TO ACCESS THE REMAINING GOLD AND COPPER PENNIES WHERE THEY WOULD BE ABLE TO GET NOTHING.
AND I JUST SEE THE LOBBYING ALREADY STARTING ON MULTIPLE LEVELS.
GREAT COMMENT, BECAUSE THOSE DISTRICTS WOULD SAY, AS YOU NOTED, THIS IS UNFAIR.
WE'VE ALREADY HAD OUR VOTERS APPROVE US IN A TRE.
WE WANT MORE MONEY AND DISTRICTS LIKE US HAVE MORE FLEXIBILITY WITH WHAT'S REMAINING.
AND WHAT I MEAN BY IMPACTING THE STATE BUDGET AT A THREE PERCENT TAB GROWTH, OUR COMPRESS RATE GOES FROM POINT NINE FIVE ONE THREE TWO POINT NINE FOUR SIX NINE WITH THAT FIFTH GOLDEN PENNY THAT HAS ALREADY BEEN APPROVED BY THE BOARD.
THE BOARD WOULD STILL HAVE TO ADOPT THE TAX RATE IN AUGUST, BUT THEN ANYTHING ABOVE AND BEYOND IN DISASTER PENNIES.
YOU CAN SEE THE IMPACT ON THE TAX RATE THERE.
AND WHAT DOES GOLDEN AND COPPER MEAN, THIS IS NOT A GARLAND ISD TERM OR BRANDY MAYOR TERM OR BRENT RINGO TERM, THAT IS THE TERM IN LEGISLATION, GOLDEN PENNIES AND COPPER PENNIES.
EVERY PENNY ON OUR TAX RATE GENERATES ABOUT TWO POINT THREE MILLION DOLLARS REGARDLESS OF WHERE THE TAX RATE ON OUR TAB VALUES.
BUT WHAT THE STATE DOES IS KICK IN ADDITIONAL FUNDING FOR GOLDEN PENNIES AND QUITE A BIT MORE.
YOU CAN SEE FOR US IT'S ABOUT FOUR POINT THREE TO FOUR POINT FOUR MILLION FOR EVERY PENNY IN THE GOLDEN PENNIES THAT WE DON'T HAVE.
THEN THE STATE SAYS, OK, WITH THE COPPER PENNIES, WE'LL GIVE YOU THIS MUCH.
BUT IT'S, AS YOU CAN SEE, A QUARTER PERCENT LESS.
SO, YOU KNOW, WE'RE LOOKING AT ANYWHERE FROM SIX POINT SEVEN MILLION FOR OUR GOLDEN PENNIES DOWN TO THREE POINT THREE AND A HALF MILLION FOR OUR COPPER PENNIES.
AND WE CAN SEE THE TOTAL CUMULATIVE IMPACT ON REVENUE.
[01:55:01]
UNDER CURRENT LEGISLATION THAT IS THE AMOUNT OF MONEY THAT COULD BE GENERATED A DDITIONALLY, ONLY FOR ONE YEAR.IT'S NOT LIKE A TRE WHERE THE VOTERS APPROVE THAT AND IT'S THERE FOREVER.
BUT THAT IS ONLY UNDER CURRENT LEGISLATION.
AND AS I NOTED BEFORE, THERE'S LEGISLATION OUT THERE TO STOP THIS FOR NEXT YEAR.
AND HIGHLIGHT AGAIN JUST FOR THE WORDS GOLDEN AND COPPER PENNY, WHEN PEOPLE HEAR THIS, IT IS IN LEGISLATION, BUT THAT GOLDEN PENNY, YOU CAN SEE WHAT IT GENERATES LOCALLY AND A COPPER PENNY GENERATES LOCALLY THE EXACT SAME DOLLAR AMOUNT.
IT'S THE STATE CONTRIBUTION THAT CHANGES BETWEEN THE TWO.
GOING INTO THE BUDGET LAST YEAR, WE WERE TALKING ABOUT DISASTER PENNIES BECAUSE COVID OBVIOUSLY IMPACTED US PRIOR TO THE ADOPTION OF THIS BUDGET, DID ANY DISTRICTS GO MOVE FORWARD WITH DISASTER PENNIES FOR THIS YEAR.
SO THROUGH OUR SNAPSHOT DATA AND THROUGH DECEMBER TEA HAS COLLECTED ALL THAT DATA FROM DISTRICTS I DO NOT.
AND THEY PUBLISHED THAT ON THE TEA'S WEBSITE.
I DO NOT HAVE THAT DETAIL TO BE ABLE TO CONFIRM THAT AT THIS POINT.
I AM NOT AWARE PERSONALLY OF ANY DISTRICT THAT DID THAT AT THIS TIME.
THAT DOES NOT MEAN THERE'S NOT A DISTRICT IN THE STATE THAT DID NOT DO THAT.
I MEAN, I GUESS THAT'S THE BIG CURIOSITY IS BECAUSE I WOULD THINK THAT NEXT YEAR'S FISCAL YEAR, WHILE THE DISASTER DECLARATION IS STILL IN EFFECT, WOULD ACTUALLY BE THE LESS IMPACTED FISCAL YEAR REGARDING COVID AS OPPOSED TO THE ONE WE JUST HAD THAT WE'RE CURRENTLY IN THE BUDGET.
SO WHY DOES THE LEGISLATURE SO TERRIFIED THERE'S GOING TO BE THIS LAND RUSH PENNIES WHEN THIS TOOL, AS FAR AS I CAN TELL, LEGISLATIVE WE COULD HAVE USED THIS YEAR AND NO ONE DID.
THE REASON BEING IS FOR US, IT'S GOING TO COST THE STATE AN ADDITIONAL.
YOU CAN SEE GOING DOWN THE PENNIES AN 18 MILLION JUST FOR OUR DISTRICT ALONE TO GO AFTER DISASTER PENNIES.
AND THE NEXT YEAR WITH THE ADA DECLINE THAT'S JUST THE COMMENT FROM THE STATE, THEY'RE LOOKING AT ALL THE TAX RATES IN THE STATE.
AND FROM THEIR PERSPECTIVE, HOUSE BILL THREE, THEY KNEW IT WAS GOING TO BE HARD TO FUND WITHOUT DISASTER PENNIES.
I GUESS I UNDERSTAND THE CONCERN, BUT THAT CONCERN SHOULD HAVE BEEN PRESENT IN THIS CURRENT FISCAL YEAR, TOO.
AND AS FAR AS I CAN TELL, THIS, THESE PROJECTIONS OF DISASTER THAT YOU'RE HEARING OUT OF AUSTIN DIDN'T COME TO FRUITION THIS YEAR.
WHY DO THEY SUSPECT IT'S GOING TO COME TRUE NEXT YEAR? BECAUSE I WOULD [INAUDIBLE] THE STATE.
THEY HAVE NOT BEEN VERY SUPPORTIVE OR FRIENDLY TO PUBLIC FUNDING OR PUBLIC SCHOOL FUNDING IN PRIOR YEARS.
BUT I JUST I WOULD THINK THAT THE VAST MAJORITY OF DISTRICTS, BECAUSE REMEMBER WHEN WE WERE DOING OUR FINAL BUDGET APPROVALS FOR THIS CURRENT BUDGET, WE WERE DOING A LOT OF THIS THROUGH ZOOM BECAUSE WE COULDN'T EVEN GET TOGETHER.
I MEAN, WE WERE AT THE NADIR IN TERMS OF WHAT OUR PUBLIC INVOLVEMENT WAS WITH RESPECT TO COVID.
AND AS A DISTRICT, WE DIDN'T APPROVE DISASTER PENNIES THEN NONE OF THE DISTRICTS AROUND US APPROVED DISASTER PENNIES THEN.
I KNOW SEVERAL DISTRICTS HAVE THE ABILITY TO DO IT AND NONE OF THEM DID.
WHAT'S THE ASSUMPTION THAT EVERYONE'S GOING TO DO IT NEXT YEAR WHEN WE DIDN'T DO IT LAST YEAR? I THINK LAST YEAR THERE WAS NOT A LEGISLATIVE SESSION FOR THEM TO HAVE THIS DISCUSSION IN AUSTIN AND THIS SESSION THERE IS.
AND THEN THE OTHER WE'RE SEEING WHAT HAPPENED WITH THE CARES ACT.
WE DID NOT GET ADDITIONAL DOLLARS.
AND SO MY BELIEF IS THE PERCEPTION IS WE HAVE NOT SEEN ANY ADDITIONAL MONEY FROM RELIEF FUNDING THAT DISTRICTS NOW, WE'LL PROBABLY TAKE FULL ADVANTAGE WHILE THEY CAN IF THOSE PENNIES ARE THERE.
SO, IN OTHER WORDS, THE LEGISLATURE NOW SAYS, HEY, NOW THEY KNOW WE STOLE THE CARES MONEY, SO NOW THEY MIGHT BE MAD AND THEY GO AFTER THE DISASTER PENNY MONEY.
AND THERE WAS NOT A SESSION LAST SPRING FOR THEM TO HAVE THIS DISCUSSION TO STOP THAT.
YEAH, DON'T YOU THINK THE PROBLEM WAS A LITTLE BIT OF A LAG EFFECT TO DISTRICTS TRYING TO EVALUATE WHAT COVID MEANT.
THE DISASTER I MEAN, THE DISASTER DECLARATION TOOK PLACE, BUT IT TAKES A WHILE TO GENERATE THE NUMBERS TO LET YOU KNOW HOW TO ANTICIPATE WHAT'S COMING AND WITH THE CARES ACT FUNDING AND ALL THE SAVES.
REALLY, THE EXPENSE SAVES THE DISTRICT, YOU KNOW, COULD SEE COMING BECAUSE OF SHUTDOWNS, TRANSPORTATION, YOU KNOW, ALL THE DIFFERENT THINGS WE SAVED MONEY ON UTILITIES.
TO ME, COMING OUT OF THE DISASTER IS GOING TO BE WAY MORE EXPENSIVE THAN EVEN BEING IN IT, BECAUSE YOU GOT TO NORMALIZE.
YOU'VE GOT TO SPEND THE MONEY TO NORMALIZE, WHEREAS WE WERE KIND OF CUTTING BACK DURING THE DISASTER.
NOW WE'VE GOT TO FULLY FUND AND THE DIFFERENCE IN OUR BUDGET FULLY FUNDED
[02:00:01]
VERSUS WHAT IT WAS DURING COVID IS HUGELY DIFFERENT.SO I KIND OF SEE IT AS A TIMING THING, A LITTLE BIT WES AS WE CAN SEE NUMBERS NOW VERSUS THE NUMBERS WE WERE LOOKING AT LAST YEAR.
THERE ARE THIRTY MILLION DOLLARS DIFFERENCE.
SO PLUS FOR US, YOU HAVE THE ADDED IMPACT OF LOSS OF ADA REALIZATION THAT ADA IS GOING TO GO DOWN ANOTHER THOUSAND AND THAT'S WHAT IS THE THOUSAND I MEAN, A MILLION DOLLARS.
FOR US IT WAS ROUGHLY THIRTEEN MILLION LESS.
YOU ABSORB ALL OF THAT AND THEN TRY TO NORMALIZE IT, SO TO ME IT WAS A LITTLE BIT OF TIMING, WHICH LEADS ME TO MY QUESTION.
WHEN THEY DID THE DISASTER DECLARATION, WAS THERE A MATURITY DATE ON IT? HOW LONG DOES IT LAST? AND WILL WE BE SURPRISED WHEN IT IS OVER.
THIS IS DIRECTLY OUT OF THE TAX RATE CODE.
AND SO IT TALKS ABOUT WHEN AN INCREASED EXPENDITURE.
THE OTHER PART OF THAT DISCUSSION IS THERE'S POTENTIAL THAT THEY MAY SAY YOU MUST SHOW US THOSE REQUIRED INCREASED EXPENDITURES FOR COVID, THAT WE MAY NOT BE ABLE TO GO AFTER ALL THE DISASTER PENNIES THROUGH THIS LEGISLATION.
SO WE HAVE TO SHOW OBVIOUSLY OUR CUSTODIAN'S WE'VE HIRED THE BUS CLEANING SERVICES THE BOARD HAS APPROVED.
THE PLEXIGLASS, BUT IT NOTES SPECIFICALLY IN THE CODE THAT IT IS FOR THE TWO YEAR PERIOD FOLLOWING THE DATE OF DECLARATION.
SO IT DOES EXPIRE TWO YEARS AFTER THE DATE OF DECLARATION.
AND THE STATE HAS NEVER HAD THIS HAPPEN FOR A STATEWIDE DISASTER DECLARATION.
SO WHEN WAS THE DATE OF DECLARATION? I WANT TO SAY IT WAS IN MARCH OF NINETEEN, BUT I DON'T KNOW THE SPECIFIC DATE.
ANY TIME THEY'RE IN SESSION THE LAW CAN CHANGE.
WELL I'M GOING TO HOLD MY OTHER QUESTIONS FOR LATER.
SO WE HAVE THE CAPABILITY OF A ONE TIME INCREASE OF GOING AFTER THE 12 PENNIES THAT ARE LEFT FOR FOR AROUND FIFTY MILLION DOLLARS, ONE TIME INCREASE IN REVENUES, A CONCOMITANT INCREASE ONE TIME TO THE TAX RATE FOR OUR HOMEOWNERS AND BUSINESSES.
AND IT JUST TAKES I'M NOT SAYING JUST.
BUT IT TAKES A VOTE OF THE BOARD.
I THINK WE WILL KNOW AS WE BEGIN IF WE DECIDE TO GO IN THIS DIRECTION, BEGIN THESE DISCUSSIONS, WE'LL KNOW IF THE LEGISLATURE, AT LEAST IN THEIR REGULAR SESSION, IF THEY HAVE A SPECIAL SESSION, IT'S DIFFERENT, BUT THE REGULAR SESSION WILL HAVE ENDED.
AND WE WILL KNOW IF THIS LAW STILL EXISTS.
YOU KNOW, AS I'VE READING THROUGH THIS, YOU KNOW, THINGS JUST KEEP IN MIND THIS IS JUST KIND OF MY OPINION ON EVERYTHING I CAN REMEMBER GOING DOWN AND VISITING WITH THE LEGISLATURE LAST YEAR, A YEAR AGO WHEN THE HOUSE BILL WAS BEING TRYING TO BE WRITTEN, WHATEVER, AND WE HAD SOMEONE COME, ONE OF THE LEGISLATORS CAME IN AND TOLD US THE EXPENDITURES KIND OF SHOWED A CLOCK, AND HE SHOWED US THE EXPENDITURES YOU KNOW, LIKE THIRTY FIVE PERCENT OR 40 PERCENT WENT TO PUBLIC EDUCATION.
ANOTHER 20 PERCENT OR SO WENT TO MENTAL HEALTH.
AND THEN THE REST OF IT WAS WHAT WAS LEFT FOR THE BUDGET, YOU KNOW, FOR THE FULL ONE HOUR OF A CLOCK, BASICALLY.
IS THAT STILL TRUE TODAY? IS IT DO YOU KNOW? YES.
SO THEIR BUDGET BREAKDOWN SIMILAR TO OUR PIE CHART, THEY DO BREAK OUT WITH VISUALLY TO SHOW WHAT THEIR BUDGET IS FOR THE CURRENT NEXT PROPOSED SESSION, THEY ARE INCREASING FUNDING FOR PUBLIC SCHOOLS.
BUT IT'S NOT TO INCREASE WHAT WE'RE ALLOCATED PER STUDENT.
IT'S DUE TO NEW STUDENTS MOVING IN TO THE STATE OF TEXAS.
AND THE PERCENT WISE HISTORICALLY FOR PUBLIC EDUCATION HAS CONTINUED TO LOWER IN THE STATE BUDGET AS A PERCENT OF THEIR TOTAL BUDGET.
THEY USED TO FUND ROUGHLY CLOSE TO 50 PERCENT OF PUBLIC EDUCATION.
AND HOUSE BILL, THREE INCREASED THAT PERCENT.
BUT AS LOCAL PROPERTY VALUES GO UP, THAT SAME SEESAW EFFECTS GOING TO HAPPEN.
THE STATE BUDGET WHERE LESS AND LESS FROM THE STATE BUDGET IS CONTRIBUTED.
SO AS I WAS READING THIS AND CONTEMPLATING, I'M SITTING THERE AND I WAS THINKING ABOUT THE STATE AS A WHOLE, YOU KNOW, THE DECLINE IN OIL PRICES, DECLINE IN THE SALES TAX, YOU KNOW, THAT'S THEIR REVENUE.
THAT'S WHERE THEY'RE REALLY COUNTING ON THAT IS THEIR BIG REVENUE SOURCES, OF COURSE, QUOTE UNQUOTE THE LOTTERY, THEY SAY, YOU KNOW, BUT I DON'T SEE THAT.
BUT, YOU KNOW, I DON'T EVEN THINK THEY HAVE COMPLETED PAYING OUT FOR THE HARVEY FOR THE HURRICANE AND THE THINGS THAT ARE GOING ON THERE.
AND THAT DISASTER IS STILL HANGING OVER THEIR HEAD.
AND THEN COVID HIT ON TOP OF THAT.
[02:05:02]
AND I'M SITTING THERE GOING, HOW IN THE WORLD ARE WE GOING TO BE AS A DISTRICT, BE ABLE TO GO AFTER DISASTER PENNIES AND THEY STILL GOT THIS TYPE OF SITUATION GOING ON AT THE STATE LEVEL.AND YOU'VE GOT EVERYBODY REACHING FOR SOME OF THAT PIE OF THAT 35 TO 40 PERCENT OF THE CLOCK.
BASICALLY, YOU KNOW, IT'S BLOWING MY MIND.
I DON'T KNOW THE ONLY WAY I CAN SEE THAT HAPPENING AND DR.
LOPEZ ALLUDED TO THIS WOULD BE THEY TAP INTO THE RELIEF FUNDS BECAUSE THOSE RELIEF FUNDS MUST GO TO PUBLIC SCHOOL DISTRICTS.
AND THAT IS THE ONLY WAY I SEE THIS HAPPENING IS IF THE STATE WERE TO SAY WE'RE GOING TO ALLOW THOSE RELIEF FUNDS TO BE ALLOCATED FOR DISTRICTS TO CHOOSE THE DISASTER PENNIES, AND THEN THERE'S GOING TO BE MONEY LEFT OVER AND THEN THEY WOULD HAVE TO COME UP WITH ANOTHER WAY TO SAY WE'RE GOING TO ALLOW OR ALLOT THESE FUNDS, AND IT COULD BE THAT THEY SAY IT'S AN OFFSET LIKE WE'VE SEEN HISTORICALLY, NOT JUST WITH COVID, BUT WITH THE RECESSION, WITH THE FEDERAL RELIEF DOLLARS THAT WERE ALLOCATED.
IT WAS IT WAS A REPLACEMENT OF IT WAS SUPPLANTED.
SO IF WE WERE JUST IF WE'RE GIVING A HUNDRED DOLLARS FROM THE FEDS, THE STATE CUT US A HUNDRED DOLLARS IN THE RECESSION.
SO WHAT YOU'RE SAYING THEN IS BY LAW, IF WE DECIDED TO GO AFTER THESE DISASTER PENNIES, THEY HAVE TO PAY IT UNDER CURRENT LAW.
I WILL HIGHLIGHT, WE HAVE A VERY TIGHT KNIT CFO GROUP THAT I TALK TO QUITE A BIT AND EVEN TASBO AND FEEDBACK IS THIS IS SOMETHING THAT DISTRICTS SHOULD BE PREPARED NOT TO RELY ON.
BUT UNDER CURRENT LEGISLATION, IT IS BEST TO SHARE WHAT WE'RE ALLOWED TO DO.
SO WHAT IF WE PUT IT IN PLACE UNDER CURRENT LAW NOW AND THEN THEY CHANGE IT? DO WE HAVE A LAWSUIT ON OUR HANDS IN THE STATE OF TEXAS? WE WOULD KNOW BEFORE WE ADOPT OUR TAX RATE IN AUGUST.
SO IF THERE'S NOT A SPECIAL SESSION THAT EXTENDS INTO THE SUMMER, THAT THE LEGISLATIVE SESSION WILL END IN MAY AND THE LAWS ARE SET.
IF THERE'S NOT A CHANGE IN LAW, WE WILL KNOW THAT IN MAY BEFORE WE ADOPT OUR BUDGET AND BEFORE WE ADOPT OUR TAX RATE IN AUGUST.
SPEAKING OF CURRENT LAW, I KNOW ON THE SLIDE THAT YOU HAVE BEFORE YOU HAVE ALL THE PENNIES THAT ARE UP THERE, HAVE YOU EVER SEEN THE DISASTER PENNY THING WORKED OUT, LIKE WITH RESPECT TO DISTRICTS IN HARVEY OR SOMETHING LIKE THAT? BECAUSE WHEN I READ THE STATUTE, THE STATUTORY LANGUAGE, IT SAYS WHEN INCREASED EXPENDITURE OF MONEY BY A SCHOOL DISTRICT IS NECESSARY TO RESPOND TO A DISASTER, I DON'T I WOULDN'T NECESSARILY INTERPRET THAT AS YOU CAN JUST USE ALL THE PENNIES YOU HAVE AVAILABLE TO YOU.
YOU CAN USE THE PENNIES AVAILABLE TO YOU TO OFFSET HOW MUCH YOU'RE OUT, HOW MUCH YOU CAN JUSTIFY THE DISASTER HAS COST YOU.
WOULD THAT BE A FAIR INTERPRETATION.
THAT IS THAT IS WHY WITH THE LEGISLATION OCCURRING IN AUSTIN, THERE IS A LOT OF DISCUSSION ABOUT THIS BECAUSE IT HAS NEVER HAPPENED STATEWIDE.
AND SO BASED OFF OF YOUR COMMENTS THAT I KNOW [INAUDIBLE] QUESTION, THEY MAY COME BACK AND SAY DUE TO THIS BEING A STATEWIDE LEGISLATION, WHICH WOULD REQUIRE SOME CHANGE IN THE CODE, BUT OR WORDING, I SHOULD SAY, OR INTENT OF THE CODE, WE MAY ONLY GO AFTER THE PENNIES THAT WE CAN TRULY SHOW THE DOLLARS WE HAD TO EXPENSE OUT DUE TO COVID.
AND BASED ON WHAT YOU PRODUCE, WHAT YOU PRESENTED SO FAR, WE'RE SPENDING ROUGHLY ABOUT THREE AND A HALF MILLION DOLLARS ON COVID RELATED ITEMS. PLUS WE'VE LOST ABOUT A THOUSAND ADA PROBABLY THAT WE CAN DIRECTLY ATTRIBUTE TO COVID.
AND THERE WILL BE FUTURE COVID EXPENDITURES IN REGARDS TO PPE AND THAT THAT'S NOT BEEN DONE YET.
BUT THAT WOULD BE ROUGHLY SOMEWHERE AROUND TWENTY, TWENTY FIVE MILLION, NOT 50.
OK, I JUST WANT TO KIND OF REALLY FRAME ABOUT WHAT WE'RE, WHAT WE'RE LOOKING AT AS BECAUSE I CAN'T SEE A JUDGE READING THIS SAYING THAT ENTITLES US TO GET EVERYTHING.
AND TO HIGHLIGHT TO YOUR POINT, THEY MAY SAY YOU HAVE FUND BALANCE.
I MEAN THERE'S A NUMBER OF DISCUSSION THAT CAN COME OUT OF AUSTIN.
AND THEY COULD SAY YOU DON'T NEED INCREASED EXPENDITURES BECAUSE YOU HAVE ENOUGH RESERVES.
AS YOU CAN SEE, THAT'S WHY THE TEXAS SCHOOLS FINANCE IS ONE OF THE MOST COMPLICATED TOPICS TO WORK THROUGH, ESPECIALLY WHEN IT'S A LEGISLATIVE SESSION.
WELL, NOW YOU'RE TALKING ABOUT TEXAS STATUTORY CONSTRUCTION, WHICH IS EQUALLY ACROSS THE BOARD, ACROSS ALL DISCIPLINES SCREWED UP.
AND SO THAT PENNY EXAMPLE, AGAIN, THIS IS GOING TO BE A LOT OF INTERPRETATION COMING OUT OF AUSTIN.
BUT THIS IS TO SHOW THAT EXAMPLE, EVEN WITH ACCESSING ALL THE PENNIES AT A THREE PERCENT TAB GROWTH RATE, OUR TAX RATE WILL BE LOWER THAN IT HAS BEEN SINCE 2016-17.
SO THAT RATE YOU CAN SEE HERE OF WHAT THAT IMPACT IS ON A 21-22 TAX RATE.
WE THE TWENTY EIGHT CENTS THAT YOU SEE THERE, YOU WILL SEE THAT ON OUR DEBT SERVICE FUND.
BUT I'LL HIGHLIGHT THAT SHORTLY.
WE'RE ABLE TO MEET OUR DEBT SERVICE OBLIGATION WITH THE 20 AT A THREE PERCENT, THREE PERCENT TAB GROWTH.
WE'RE ABLE TO MEET OUR OBLIGATION FOR PRINCIPLE INTEREST.
[02:10:03]
THE IMPACT ON A $200,000 HOME.EVERY PENNY INCREASE ABOVE WHERE THE RATE CURRENTLY SITS, WHICH IS POINT NINE FIVE ONE THREE, IS ABOUT A $17.50 CENT IMPACT ON A HOME.
A TWO HUNDRED THOUSAND DOLLAR HOME, I SHOULD SAY.
OUR TAX RATE ADOPTION TIMELINE.
WE'RE ON A JULY ONE FISCAL YEAR.
UNDER THAT LAW, WE MUST ADOPT OUR BUDGET IN JUNE AND THEN WE ADOPT OUR TAX RATE AFTER CERTIFIED VALUES ARE KNOWN IN AUGUST.
ALL SCHOOL DISTRICTS ADOPT THEIR TAX RATE IN AUGUST.
DISTRICTS HAVE THE CHOICE TO ADOPT THEIR BUDGET EITHER IN JUNE OR AUGUST.
EVERY YEAR, ABOUT 80 PERCENT OF THE DISTRICTS OR STUDENTS IN THE STATE OF TEXAS ARE ON A JULY ONE FISCAL YEAR LIKE WE ARE.
ONCE WE APPROACH OUR TAX RATE OF ADOPTION IN AUGUST TEA WE HAVE TO SUBMIT OUR CERTIFIED VALUES TO TEA.
LAST YEAR, WE DID HELP SET THE PRECEDENT IN HOW TO CALCULATE THE M&O TAX RATE BASED OFF WHERE PROTESTS WERE ACROSS THE STATE.
AND SO WE WILL WORK WITH TEA AGAIN THIS YEAR ONCE WE KNOW THOSE VALUES TO DETERMINE OUR COMPRESSED RATE, THEY WILL COME BACK.
WE CAN EITHER PROTEST THE RATE THEY GIVE US OR WE CAN AGREE WITH IT.
AND THEN THAT'S WHAT WE COME BACK TO THE BOARD OF TRUSTEES IN AUGUST WITH THAT FIFTH GOLDEN PENNY TO ADOPT.
UNDER CURRENT LEGISLATION, AS I NOTED, IF DISASTER PENNIES ARE ADDED IN FY 21-22, THAT IS ONLY FOR ONE YEAR.
AGAIN, THERE'S A LOT OF INTERPRETATIONS TAKING PLACE IN AUSTIN RIGHT NOW SINCE THE SESSION IS OCCURRING.
WITH THAT, I'LL TURN IT BACK OVER TO MS. MAYO.
WE WANT TO BRING YOU A COUPLE OF OTHER SCENARIOS THAT COULD AFFECT OUR FUTURE BUDGET AND THEN TALK ABOUT OUR PROJECTED BUDGET AS WE GO INTO THE FUTURE.
SO THIS IS A POSSIBLE ONE TIME PAYMENT IMPACT.
IF WE DID CONSIDER A ONE TIME PAYMENT FOR NEXT YEAR, AS WE DID IN THIS FISCAL YEAR.
THIS WILL GIVE YOU AN IDEA OF WHAT THAT WOULD LOOK LIKE.
NOW, ONE DIFFERENCE IS THIS SCENARIO BRINGS TO YOU A STAFF RETENTION COMPONENT.
AND SO WE TOOK OUR INFORMATION FROM OUR TAPR REPORT FROM THE TEXAS EDUCATION AGENCY.
WE WORKED VERY CLOSELY WITH H.R.
AND WE DETERMINE THE AVERAGE HISTORICAL THREE YEAR NUMBER FOR RETURNING STAFF.
WE CONSIDER RETURNING PART TIME STAFF AND THEN THE RETURNING SUBSTITUTE.
SO THESE ARE SUBS THAT SIGNED THE COMMITMENT FOR THE NEXT THREE YEARS.
AND THIS IS THE AVERAGE OF THOSE STAFF MEMBERS.
THIS WOULD BE THE IMPACT IN THE MIDDLE COLUMN IF WE FOLLOW THE SAME SCENARIO WE DID THIS FISCAL YEAR WITH A FIVE HUNDRED DOLLAR PAYMENT FOR FULL TIME STAFF, TWO HUNDRED AND FIFTY DOLLARS FOR PART TIME STAFF, INCLUDING BENEFITS.
YOU'LL SEE IT'S ABOUT THREE POINT ONE DOLLARS MILLION.
AND THEN THE ONE THOUSAND FULL TIME, FIVE HUNDRED PART TIME IS ABOUT THREE POINT THREE MILLION DOLLARS.
SO THESE ARE ONE TIME EXPENDITURES.
THEY DO NOT ROLL FORWARD, AS WE DISCUSSED WITH OUR PRIOR SLIDE WHEN WE WERE TALKING ABOUT OUR RAISE SCENARIOS.
SO THESE WILL BE ONE TIME IN THE FISCAL YEAR AND THEN A NEW PAYMENT OR NEW RATES WOULD HAVE TO BE CONSIDERED FOR FUTURE YEARS.
AS WE'VE HEARD, A LOT OF DISCUSSION IN OUR FEDERAL GOVERNMENT IS A MINIMUM WAGE IMPACT.
SO CHANGES TO THE MINIMUM WAGE.
SO WE WANTED TO GO AHEAD AND DO SOME CONSIDERATION AND THOUGHT ON THAT POSSIBILITY GOING FORWARD SO THAT WE COULD SHARE WITH YOU HOW THIS MIGHT AFFECT FUTURE BUDGET YEARS.
SO ONE SCENARIO IS A 12 DOLLAR PER HOUR.
SO AS YOU CAN SEE HERE, THE MINIMUM IMPACT IS ESTIMATED TO BE ABOUT TWO HUNDRED AND SEVENTY SIX THOUSAND DOLLARS.
SO THAT REALLY SHOWS US THAT WE DON'T HAVE A LOT OF STAFF THAT ARE BELOW TWELVE DOLLARS AN HOUR.
BUT I DO WANT TO POINT OUT THAT THAT IS ONLY BRINGING EVERYONE THAT IS BELOW 12 TO 12.
THERE WERE OBVIOUSLY BE SOME EQUITY ADJUSTMENTS THERE THAT WE WOULD NEED TO CONSIDER FOR ALL OF THE STAFF.
SO THEY WOULD PROBABLY RECEIVE SOME KIND OF CHANGE AS WELL.
IS GOING TO WORK WITH TASB ON THAT MODEL AND WHAT THAT EQUITY ADJUSTMENT OVERALL WOULD LOOK LIKE IF WE CONTINUE TO GO FORWARD.
AND THEN THE NEXT COLUMN SHOWS FIFTEEN DOLLARS.
THIS IS ONLY SHOWING EVERYONE THAT IS BELOW 15 TO FIFTEEN DOLLARS.
THAT WOULD BE ABOUT THIRTY POINT FIVE MILLION DOLLARS.
ONE KIND OF EXAMPLE FOR YOU TO THINK ABOUT IS IF SOMEONE MADE 14 DOLLARS AND 90 CENTS, THIS ONLY REPRESENTS THAT 10 CENT CHANGE.
WE CLEARLY THERE WOULD BE ANOTHER EQUITY ADJUSTMENTS INVOLVED THERE.
WE LIKELY WOULDN'T INCREASE SOMEONE BY 10 CENTS.
SO TASB WOULD WORK WITH US ON THE EQUITY AND HOW THAT WOULD IMPACT THE DISTRICT.
BUT THIS IS THE FLOOR OF BRINGING EVERYONE TO THAT.
SO THIS IS FOR YOUR THOUGHTS AND PLANNING AND HOW THIS COULD AFFECT US GOING FORWARD.
SO HERE ARE OUR 21 THROUGH 2024 SCENARIOS.
[02:15:02]
SO AGAIN, WE ARE BUILDING OUR FUTURE YEARS ARE CONSIDERING OUR FUTURE YEARS WITH A LOSS OF ADA OF ONE THOUSAND FOR FY 22.I WANT TO HIGHLIGHT TO YOU, IF YOU CAN SEE UNDER PAYROLL, IT SAYS DISTRICT STAFFING REDUCTIONS.
SO THAT IS THERE TO SHOW YOU WHAT THE IMPACT.
AND THIS WAS PRESENTED IN A PRIOR SLIDE WITH THE DISTRICT STAFFING REDUCTIONS THAT WE SHARED WITH YOU EARLIER.
IT WOULD BE ABOUT A 19 MILLION DOLLAR NEGATIVE IMPACT OF FUND BALANCE.
PLEASE KEEP IN MIND THIS DOES NOT SHOW OUR HISTORICAL SALARY SAVES THAT WE HAVE SEEN YEAR TO YEAR AND THIS IS CARRIED OVER THROUGH THE FUTURE FISCAL YEARS.
WE'RE SHOWING A LOSS OF ADA ABOUT EIGHT HUNDRED AND TWENTY THREE AND FIVE HUNDRED AND TWENTY FOUR.
SO THESE ARE OUR CURRENT PROJECTIONS.
AND THEN THE NEXT SLIDE, IF YOU'LL SEE, UNDER THE DISTRICT STAFFING REDUCTIONS, WE WENT AHEAD AND ADDED A POSSIBLE PAY RISE OF THREE PERCENT, JUST TO GIVE YOU AN IDEA OF HOW THAT WILL AFFECT THE THE OVERALL BUDGET WITH REGARDS TO REVENUE AND EXPENDITURES.
AND THEN AGAIN, WE CONSIDER ANY SALARY SAVINGS AS TO REDUCE THAT IMPACT, TO FUND BALANCE, AND THEN THAT'S CARRIED OVER INTO THE FUTURE FISCAL YEARS.
AND ARE THERE ANY QUESTIONS ON.
SO I UNDERSTAND THREE PERCENT.
TELL ME HOW THE INTO THESE BUDGET NUMBERS, THE MINIMUM WAGE IS IT FACTORED IN AT ALL? NO, SIR.
YOU WOULD HAVE TO CONSIDER THAT ON TOP.
SO, FOR EXAMPLE, IF WE IF WE DID INITIATE THAT THREE MILLION DOLLAR, THE FLOOR OF WHAT WE HAD, IT WOULD MAKE THAT DEFICIT OF THIRTY FOUR.
RINGO WILL SHARE INFORMATION WITH YOU ON STATE AND FEDERAL GRANTS.
I'M SORRY, I WANT TO FOLLOW UP ON THAT.
JUST GIVE ME AN IDEA OF THE TYPES OF POSITIONS OR MAYBE THE NUMBERS AND THE POSITIONS THAT ARE CURRENTLY BELOW FIFTEEN DOLLARS AN HOUR.
SO THERE ARE PROBABLY I THINK IT'S ABOUT DR.
BROWN MAY BE BETTER ABLE TO SPEAK TO THAT QUESTION.
WHAT TYPES OF POSITIONS ARE UNDER FIFTEEN DOLLARS AN HOUR.
NO, I HAVE A REASON, BUT THE MAJORITY OF THE POSITIONS THAT ARE UNDER $15 PER HOUR ARE TEACHER ASSISTANT POSITIONS, CLERICAL POSITIONS SUCH AS OFFICE AIDE, SOME DIAGNOSTICIAN AIDE POSITIONS, AND AS WELL AS SOME OF OUR AUXILIARY POSITIONS AND ALL OF THOSE FULL TIME CONSIDERED FULL TIME.
FOR THE MAJORITY ARE FULL TIME.
WE HAVE VERY FEW PART TIME POSITIONS.
AND IT'S APPROXIMATELY HOW MANY EMPLOYEES.
AND AS WE LOOK AT THIS SLIDE BEFORE I GO TO THE FEDERAL GRANTS, JUST TO HIGHLIGHT AGAIN AS THE SEESAW EFFECT, THE ONLY WAY TO GENERATE ADDITIONAL REVENUE IS INCREASE ADA AND OR THE TAX RATE.
OTHERWISE, THERE IS NO ADDITIONAL REVENUE FOR SCHOOL DISTRICTS TO OPERATE WITH STATE FEDERAL GRANTS.
YOU DID SEE THIS IN OUR FINANCE COMMITTEE MEETING TWO WEEKS AGO.
THIS AND THESE ITEMS DO NOT IMPACT OUR GENERAL FUND.
THEY ARE, BUT THEY ARE TRACKED, RECORDED JUST AS MUCH AS THE GENERAL FUND.
IN FACT, TO AN EXTENT MORE ON THE PROCUREMENT SIDE, IT IS FAR MORE RESTRICTIVE.
AND SO THESE ARE HEAVILY TRACKED AND REPORTED NOT ONLY TO THE STATE, BUT TO THE FEDS.
IN MOST INSTANCES, AS WE REDUCE OUR GENERAL FUND, WE CAN NOT REDUCE OUR GRANTS BECAUSE THERE'S A MAINTENANCE OF EFFORT.
THOSE FUNDS ARE COMING IN SEPARATE OF GENERAL FUND, AND THERE'S A REQUIREMENT BY LAW THAT WE MAINTAIN THE SAME AMOUNT OF EFFORT AND EXPENDITURE OF THOSE FUNDS YEAR AFTER YEAR.
IF A POSITION IS FUNDED FROM A GRANT, THEN THAT POSITION IS CONTINGENT UPON THAT GRANT FUNDING REMAINING IN PLACE.
AGAIN, NO IMPACT ON OUR GENERAL FUND BUDGET.
SO AS LONG AS WE GET THOSE GRANT FUNDS AND THOSE POSITIONS ARE TIED TO THOSE POSITIONS, DO STAY IN PLACE.
WELLS IS AVAILABLE, BUT THESE ARE THE VARIOUS GRANTS THAT SHE HIGHLIGHTED THAT WE RECEIVED FROM THE STATE, THE AMOUNT AND THE PURPOSE OF THAT GRANT.
[02:20:03]
I WILL NOT GO THROUGH EACH ONE OF THOSE, AS YOU CAN SEE ON THE SCREEN AND IN YOUR PACKET.THEN, AS WE TRANSITION OVER TO OUR FEDERAL GRANTS, YOU CAN SEE THE AWARDED AMOUNT FOR EACH OF THOSE FEDERAL GRANTS, THE NUMBER OF STAFF INVOLVED AND SUPPORTED BY THAT GRANT IN THE PURPOSE OF THAT GRANT.
AGAIN, I WILL NOT READ THROUGH EACH ONE OF THESE AS YOU HAVE THE DETAILS THERE IN FRONT OF YOU.
AND CONTINUING ON TO OUR FEDERAL GRANTS ON SLIDE 76, YOU CAN SEE THE REMAINING FEDERAL GRANTS, THE AMOUNT AND THE TOTAL STAFF INVOLVED AND THOSE PURPOSES ALSO.
AND BEFORE WE MOVE OVER TO STUDENT NUTRITION FUND, ARE THERE ANY COMMENTS OR QUESTIONS REGARDING OUR FEDERAL OR STATE GRANTS? MR. GLICK.
JUST MAYBE A GENERAL QUESTION ABOUT THE MINIMUM WAGE.
I'M ASSUMING YOUR PRESENTATION WAS BASED ON WHAT'S HAPPENING ON THE FEDERAL LEVEL? YES, SIR.
I THINK WE CAN EXPECT THE STATE OF TEXAS HAS NO INTEREST IN RAISING THE STATE MINIMUM WAGE.
THERE ARE SEVERAL STATES THAT HAVE AND MOST ACTUALLY HAVE BUT TEXAS, I DON'T THINK HAS ANY PLANS TO.
LOPEZ, INDEPENDENT OF THE STATE OR FEDERAL, LOOKING TO SET A MINIMUM WAGE FOR ITS EMPLOYEES? I THINK THE MINIMUM THAT WE HAVE CURRENTLY IS TEN DOLLARS AN HOUR, $10.88 IS OUR LOWEST HOURLY.
THAT'S THE LOWEST HOURLY RATE WE OFFER.
BUT WE'RE NOT SETTING A MINIMUM THRESHOLD OFFICIALLY.
WE USUALLY FOLLOW THE GUIDELINES.
IT'S ABOUT THREE DOLLARS ABOVE THE NATIONAL THE FEDERAL RATE.
AND SO WE'RE KEEPING WITH THAT.
SO BUT WHAT I WANT TO REITERATE WITH DR.
RINGO STATED WAS THE MONEY THAT WE SAID WE WOULD HAVE TO ALLOCATE FOR AN INCREASE IN THE FEDERAL MINIMUM WAGE DOES NOT INCLUDE EQUITY.
AND WHEN WE SAY EQUITY, WHAT DOES THAT MEAN? IMAGINE YOU'VE BEEN WORKING IN YOUR JOB SO MANY YEARS AND YOU'RE MAKING FIFTEEN DOLLARS AN HOUR.
SOMEBODY WAS ON THAT $10.88 RANGE.
NOW THEY'RE MAKING 15 AND THEY GOT TWO YEARS SERVICE.
WELL, OBVIOUSLY, WE'RE GOING TO HAVE TO DECOMPRESS THAT AND RAISE THEM AS WELL.
SO THAT STUDY HAS NOT BEEN FINALIZED.
AND THAT WOULD ALSO BE AN ADDITIONAL IMPACT TO THE THREE MILLION DOLLARS THAT WAS WAS STATED FOR THE 15 DOLLAR AN HOUR MINIMUM WAGE.
AND EVEN IF THE FEDERAL GOVERNMENT DOES ACT, EVEN IN ANY OF THE PLANS THAT I SAW, IT'S NOT AN IMMEDIATE INCREASE TO 15 DOLLARS.
I JUST WANT TO MAKE SURE THERE'S NOTHING WE'RE THINKING OF DOING INDIVIDUALLY.
THAT WOULD BE IF THAT WERE TO COME THROUGH AS PASSED IN THE FEDERAL LEVEL, THE STATE WE WOULD WORK WITH THE STATE LEVEL AND THEN BRING THAT BACK TO THE BOARD FROM THERE.
AND IT WOULD BE OVER A PERIOD IF AS WE'VE SEEN AS OF NOW, IF PASSED OVER A FEW YEARS.
ANY OTHER QUESTIONS ABOUT FEDERAL OR STATE GRANTS BEFORE WE PROCEED, DR. RINGO, DO ALL OF THESE FEDERAL GRANTS IN TERMS OF THEIR CYCLES, ARE THEY PRETTY WELL SYNCHRONIZED? I MEAN, DO THEY HAPPEN AT THE SAME TIME? YES, SIR.
THE FEDERAL GRANTS DO HAVE THEY DO NOW ALIGN TO OUR FISCAL YEAR FOR THE MOST PART.
AND SO THEY DO HAVE THE REPORTING CYCLE, JUST LIKE OUR GENERAL FUND DOLLARS DO.
SO IS THERE A POSSIBILITY WITHIN THE TIMEFRAME OF THAT CYCLE THAT THE FUNDING COULD BE DECREASED AND SO THAT MIGHT IMPACT THE NUMBER OF EMPLOYEES THAT OR THAT COULD EFFECT [INAUDIBLE].
IF THE FEDS WERE TO DO THAT, WE WOULD KNOW AHEAD OF TIME.
FOR THE MOST PART, I HAVE NEVER EXPERIENCED WHERE THEY'VE JUST SAID A MIDDLE OF A FEDERAL GRANT YEAR TO SAY WE'RE TAKING THIS MONEY BACK FROM YOU.
NOW AHEAD OF TIME, FOR A NEW YEAR BEFORE A CONTRACT YEAR WERE TO START IF THEY WERE TO SAY WE'RE GOING TO CUT YOU KNOW, ONE OF THE LARGEST IS THE IDA PART B, YOU CAN SEE THE 184 PERSONNEL STAFFED OUT OF THAT.
WE WOULD KNOW THAT AHEAD OF TIME AND AND THOSE POSITIONS AND THEIR CONTRACTS ARE TIED TO THAT GRANT.
AND SO IF THAT WERE TO HAPPEN, THAT'S WHERE THOSE POSITIONS WOULD BE REDUCED FROM.
AND PROCEEDING WITH THE 21 22 STUDENT NUTRITION FUND, YOU CAN SEE THIS IS, AGAIN, FULLY OPERATIONAL.
OUR STUDENT NUTRITION TEAM HAS DONE AN EXCELLENT JOB OF DECREASING EXPENDITURES FOR THE CURRENT YEAR WHILE WE'RE OPERATIONAL, WE DID HAVE A DEFICIT BUDGET IN 19-20.
WE ARE PROJECTED TO HAVE A TRUE DEFICIT BUDGET IN S&S THIS FISCAL YEAR.
BUT WE HAVE THE FUND BALANCE IN S&S TO SUSTAIN THAT.
IF WE GO INTO NEXT YEAR AND WE HAVE A DEFICIT BUDGET, WHAT IS NOT REFLECTED IN THE CURRENT GENERAL FUND PROJECTIONS IS HAVING TO PICK UP ANY OF THOSE LOSSES IN S&S.
SO THIS GENERAL FUND BUDGET, WE CANNOT HAVE A FUND BE IN THE NEGATIVE.
THE GENERAL FUND BUDGET WOULD HAVE TO PICK UP ANY ABOVE AND BEYOND FUND
[02:25:05]
BALANCE LOSS NEXT YEAR.THE CCC, WITH WHAT'S HAPPENED THERE AT THE STATE LEVEL, THE CCC FUND IS NOT PART OF OUR GENERAL FUND.
BUT NOW THAT IT'S OPENED BACK UP, WE DO NOT FORESEE THE GENERAL FUND HAVING TO PICK UP ANY LOSSES WITH THE CCC FUND NEXT YEAR THAT WOULD STILL BE ABLE TO MAINTAIN ITSELF, GENERATE ENOUGH REVENUE TO PAY FOR ITSELF.
AND AS WE SAW WITH THE YEAR IT WAS OPERATIONAL WITH OUR NEW ORDINANCE THAT WAS APPROVED, IT WOULD GENERATE A FUND BALANCE ON THAT SIDE TO.
DEBT SERVICE FUND, YOU CAN SEE AT A TAX RATE OF .
3094 AGAIN, THIS IS MARCH WE DID THESE PROJECTIONS PRIOR TO MEETING WITH DCAD, BUT AT .
3094 AT A THREE PERCENT TAB GROWTH, IT DOES GENERATE A SURPLUS BUDGET, AT 98 PERCENT COLLECTION RATE OF ROUGHLY SEVEN MILLION DOLLARS.
SO THAT RATE, AS I NOTED, KNOWING WHAT WE KNOW NOW, COULD GO DOWN TO 28 CENTS AND STILL GENERATE A SMALL SURPLUS BUDGET FOR NEXT YEAR.
AND HERE'S HOW THOSE PAYMENTS ARE MADE, THEY'RE MADE EVERY AUGUST AND EVERY FEBRUARY.
THIS IS ALSO PART OF OUR FIRST RATING.
IF A DISTRICT WERE TO MISS A PAYMENT I THINK THE HIGHEST WE CAN SCORE, IT'S A CEILING INDICATOR I CAN'T REMEMBER IF IT'S A C OR WE ACTUALLY FAIL, BUT IT WOULD DROP OUR FIRST RATING HEAVILY.
SO ALLISON DAVENPORT DOES AN OUTSTANDING JOB OF MAKING SURE WE MEET THESE TIMELINES AND GETTING THESE ITEMS PAID.
OUR SUMMARY OF WHAT WE'VE COVERED TODAY, WE'VE CURRENTLY IMPLEMENTED THE NOVEMBER 2020, THE 12 PERCENT REDUCTIONS THAT WERE IMPLEMENTED ON THE NONPAYROLL SIDE, ROUGHLY 84 PERCENT, 83 PERCENT.
THE OTHER PERCENT WAS CAMPUS BASED.
YOU CAN SEE THAT IMPACT THAT HAS ALREADY BEEN CARRIED OVER INTO NEXT YEAR'S BUDGET.
THERE'S AS WE GO THROUGH THE BUDGET PROCESS, THAT NUMBER COULD ALSO GET HIGHER, MEANING IT COULD BE HIGHER THAN SEVEN POINT FOUR MILLION DOLLARS BECAUSE ALL THOSE TEAMS AND CAMPUSES ARE LOOKING AT THEIR BUDGETS NOW, SUBMITTING THOSE TO THE BUDGET DEPARTMENT SO THAT NUMBER COULD GO UP.
I KNOW I'VE BEEN WORKING WITH MY DIVISION ALONE.
WE'RE GOING TO HAVE SOME BUDGET SAVINGS WERE WE'RE GOING TO REDUCE FROM THE DIVISION.
AND AS WE GO THROUGH THE BUDGET PROCESS, THAT'S ALL GOING TO GET ADDED AND BE FURTHER REDUCED FROM NEXT YEAR'S EXPENSE PROJECTIONS.
THE SAVINGS FROM OUR PAYROLL WE KNOW WE HAVE AT THE END OF THE YEAR CURRENTLY, WE ESTIMATE THAT COULD BE AS HIGH AS FOUR PERCENT.
THAT'S ROUGHLY 20 MILLION DOLLARS OF OUR PAYROLL BUDGET THAT WE WILL NOT EXPENSE.
THAT IS A LOT HIGHER THAN NORMAL.
THAT IS DUE TO THE ACTIONS TAKEN OF NOT REPLACING ALL POSITIONS.
YOU KNOW, ROUGHLY WE AVERAGE OF AROUND 150, HUNDRED SIXTY VACANCIES WE'RE OVER TWO HUNDRED DUE TO WE'RE RIGHT ON THE BUDGET, WHICH IS GOING TO HELP CONTRIBUTE TO THAT PAYROLL SAVE.
CURRENTLY UNDER REVIEW, AS I'VE NOTED BEFORE, AND THE TASB STAFFING STUDIES WORKING WITH H.R.
THROUGH MARCH 2021 BUDGET PLANNING.
THESE ARE THE CRITERIA, JUST A VERY HIGH LEVEL ON THE PROGRAM REVIEW.
LIKE I'VE NOTED BEFORE, OUR GOAL WAS TO NOT TOUCH PROGRAMS ANY MORE THAN WE HAD THE 12 PERCENT BUDGET REDUCTION THAT HAS TAKEN PLACE.
AND SO THE PROGRAM REVIEW, WHAT WE'LL DO IN APRIL IS BRING THAT BACK TO THE BOARD LISTING THE PROGRAM, FOR EXAMPLE, FINE ARTS, HOW MUCH WE SPEND AND THEN THOSE INDICATORS.
DOES IT MEET ANY OF THESE INDICATORS THERE? AND THAT WAY IT ALLOWS THE BOARD OF TRUSTEES TO SEE WHERE OUR MONEYS ARE ALLOCATED.
AND IF IT DIDN'T RAISE REVENUE FOR THE DISTRICT OR IMPACTS OUR LITERACY OR CCMR. APRIL 2021, WE'LL HAVE ANOTHER BUDGET WORKSHOP TO FURTHER INCLUDE THE RECOMMENDATIONS FOR REDUCTIONS THAT WILL BE IN AND HOPEFULLY THAT WILL IMPROVE THE BUDGET OUTLOOK FOR NEXT YEAR.
HOWEVER, I DO NOT FORESEE IT GETTING US TO A BALANCED BUDGET ON PAPER BECAUSE THAT IS QUITE A BIT OF NUMBERS AND AS YOU SAW EARLIER EIGHTY FOUR PERCENT OF OUR BUDGET IS PAYROLL.
SIXTEEN PERCENT IS NON PAYROLL.
AND UNDER THAT SIXTEEN PERCENT WE SPEND NINE MILLION A YEAR IN UTILITIES.
THAT DOES NOT INCLUDE OUR GAS FOR BUSSES.
NEXT STEPS WE ARE IN MARCH HERE 2021.
DCAD DID GIVE US THEIR INITIAL PROJECTIONS VERBALLY.
WE WILL GET WHAT'S CALLED AN APRIL PRELIMINARY LETTER FROM DCAD AND THAT WILL GIVE US ON PAPER.
WE'LL BE ABLE TO START THAT ANALYSIS TO BETTER PROJECT OUR TV GROWTH FOR NEXT YEAR, WHICH WILL IMPACT OUR COMPRESSED RATE.
THEN IN MAY THEY GIVE US ANOTHER ONE.
AND BEFORE I GET INTO MAY, YOU CAN SEE WHAT HAPPENS IN APRIL.
THE CCMR FUNDING HAS BEEN FINALIZED FOR THE MOST PART FOR FISCAL YEAR 21, THE YEAR WE'RE IN.
SO THAT PROJECTION IS IN OUR BUDGET, WE'LL HAVE ANOTHER WORKSHOP.
WE GET INTO MAY REVENUE ESTIMATES WILL BE REVISED AGAIN BASED OFF OUR PRELIMINARY VALUES FROM DCAD.
OUR BENEFITS PAYROLL REVENUE ESTIMATES WILL BE UPDATED.
SO HAS HISTORY SHOWS OUR NUMBERS OF WHAT WE'RE SHOWING YOU WILL CHANGE IN
[02:30:01]
APRIL AND THEY WILL CHANGE AGAIN AND MAY.HOPEFULLY THE GOAL BEING DEPENDENT ON WHAT HAPPENS IN AUSTIN.
WHAT WE SHOW YOU IN MAY DOES NOT CHANGE TO JUNE FOR THE BUDGET ADOPTION THAT IS PRETTY MUCH SETTLED BY THE TIME WE HIT MAY.
THE THREE BUDGETS DO GET ADOPTED.
WE WILL UPLOAD THOSE JULY ONE, OUR PRINCIPALS AND BUDGET MANAGERS ARE ABLE TO START SPENDING MONEY FOR THE NEW FISCAL YEAR.
THAT IS THE HUGE BENEFIT OF BEING ON JULY ONE FISCAL YEAR.
SUPPLIES CAN GET HERE FOR THE START OF SCHOOL IN AUGUST, AUGUST 2021.
WE DO RECEIVE OUR CERTIFIED VALUE FROM DCAD.
THAT DOES DETERMINE OUR COMPRESSED RATE AND WHAT WE BRING BACK TO THE BOARD IN AUGUST FOR TAX RATE ADOPTION.
AND WITH THAT, I'LL OPEN IT UP TO MS. GRIFFIN.
THANK YOU ALL FOR BRINGING SUCH AN ORDERLY, PROGRESSIVE BUDGET WORKSHOP FOR US.
I WANT TO OPEN IT UP TO BOARD MEMBERS AND THE NEXT THING I WANT.
THE FIRST THING I WANT TO ASK IS FOR OUR APRIL BUDGET.
DO WE WANT TO USE THE SAME FORMAT THAT WE'RE USING NOW THAT WE ARE COMING EARLY PRIOR TO OUR REGULAR BOARD MEETING? THAT DATE IS MS. HOGAN.
AND I THINK WE'VE SEEN THIS IS PROBABLY THE LONGEST OF THE CONTINUING OF THE WORKSHOPS, AND WE DID THIS IN TWO AND A HALF HOURS, SO, YOU KNOW, WE THOUGHT THREE, THEN WE DID FOUR.
SO IS THAT OR DO WE WANT TO MEET BEFORE THEN.
IS EVERYBODY AND I THINK ONE OF THE THINGS THAT IN DOING IT THIS WAY, WHAT WE SAID IS WE CAN ADD THESE THREE TO FOUR HOURS IF WE ACTUALLY CONTROL THE AGENDA THAT WE ARE WORKING WITH IN THAT REGULAR MEETING THAT DAY.
SO IF AS WE MOVE FORWARD INTO OUR APRIL COMMITTEE MEETINGS, THEN TRYING TO LOOK TO SEE HOW MUCH WE'RE GOING TO NEED TO DO IN THE REGULAR MEETING, THEN THIS ONE O'CLOCK DEAL MAKES SENSE.
ARE WE GETTING A NOD ON THAT? BECAUSE DR.
I WOULD JUST REQUEST MAINLY FOR WORK PURPOSES THAT I'M OK WITH DOING IT ON A TUESDAY BEFORE A BOARD MEETING.
BUT IT WOULD BE MUCH EASIER ON MY SCHEDULE IF WE COULD START AT THREE.
AND IF IT SPILLS OVER TO FIVE THIRTY, I GUESS THAT'S OK.
BUT STARTING AT ONE AND TAKING BASICALLY THE WHOLE DAY IS.
LET'S DISCUSS IT BOARD MEMBERS, BECAUSE WITH RIGHT NOW, IF WE KNOW WHAT WE'RE PLANNING ON AND WE HAVE AN IDEA OF TIME, THEN WE CAN SCHEDULE THAT REGULAR BOARD MEETING IN APRIL BASED ON THAT TIME SCHEDULE.
SO I GUESS I WOULD JUST NEED TO HEAR FROM OTHER BOARD MEMBERS.
I THINK THIS WAS A FAIRLY COMPREHENSIVE PRESENTATION.
I DON'T THINK THE NEXT ONE NEEDS TO BE ANYWHERE NEAR THIS LENGTH OF TIME.
SO I'M COMFORTABLE STARTING AT THREE O'CLOCK.
DO WE STILL SAY WE WANT TO START AT THREE WITH STARTING THE REGULAR MEETING AT FIVE? ARE WE WANT TO START AT THREE AND START THE REGULAR MEETING AT SIX? I GUESS WE CAN ALWAYS KEEP IT AT FIVE AND IF WE CAN START LATER.
RINGO, DO YOU FORESEE ANY THINGS COMING OUT, YOU KNOW, LEGISLATIVELY OR ANY CHANGES THAT MIGHT CHANGE ANYTHING THAT WOULD BE PRESENTED IN APRIL? YES.
VIRTUAL SCHOOLING, VIRTUAL SCHOOL.
WE SHOULD HAVE A GOOD ESTIMATION FOR TIA NUMBERS TO BE ADDED AND ALONG WITH THE BENEFIT IMPACT, BECAUSE IT WON'T BE A NET ZERO TO THE DISTRICT WITH THE BENEFIT IMPACT.
THERE WILL BE AN INCREASE, A SMALL INCREASE COST.
AND SO WE THERE WILL BE SOME CHANGES THAT DO COME.
DR. LOPEZ, DON'T YOU THINK THAT COMMITTEE TIME IN APRIL WILL BE YOU WILL LET ME RESTATE IT.
AT THE APRIL COMMITTEE MEETING, WILL YOU BE READY TO GIVE AS MUCH OF A COMPREHENSIVE VIRTUAL SCHOOL OVERVIEW SO THAT WE GET MOST OF THE DISCUSSION OF THE VIRTUAL SCHOOL IN COMMITTEE? WE CAN GIVE AS MUCH AS INFORMATION THAT WE'LL HAVE AT THE TIME THE DOCUMENTS
[02:35:01]
ARE DUE.BECAUSE DOCUMENTS ARE DUE THE WEEK AHEAD OF TIME.
SO AND IT'S JUST RIGHT AROUND THE CORNER.
BUT WE'LL GIVE AN UPDATE ON COMMITTEES.
OK, SO WE SAID VIRTUAL SCHOOLS AND WHAT EACH ALLOTMENT TEACHER INCENTIVE ALLOTMENT.
OK, IN KEEPING WITH THAT TO THE MEMBERS, IS THERE ANYTHING? I STOPPED TAKING NOTES AND I APOLOGIZE, BUT I JUST DID.
SOME OF YOU WERE REQUESTING ADDITIONAL INFORMATION.
DO YOU WANT TO SUMMARIZE WHAT THAT IS AT THIS TIME SO THAT THEY KNOW WHAT TO BRING BACK? OR WAS THERE ANYTHING SIGNIFICANT SO THAT THEY WILL KNOW HOW TO ORDER THEIR PRESENTATION? I JUST HAD ONE AND I WOULD BE GLAD FOR IT TO BE JUST A SLIDE OR A ADDENDUM TO OUR BUDGET WORKBOOK WHERE WE TALKED ABOUT THE BREAKDOWN OF THE FIFTY FIVE PERCENT ITEMS AND THEN FORTY FIVE PERCENT OF IT, I GUESS, GOES ALLOCATION OF THE TIER TWO MONEY.
JUST SOME KIND OF IDEA ON THAT.
MR. MILLER, WE CAN BRING THAT BACK AND WE CAN SHOW WHAT OUR CURRENT WHAT WE SHOWED YOU, WE DID SHOW OUR TEMPLATE FOR THIS YEAR EXPENDITURES IN THOSE ALLOTMENTS.
AND WE'LL BRING BACK AND SHOW YOU THAT.
AND THE STATE HAS THOSE THRESHOLDS IN PLACE BECAUSE THEY ALSO KNOW THAT IF WE WERE TO SPEND THOSE DOLLARS ALLOCATED WITHIN THOSE ALLOTMENTS, WE CANNOT OPERATE A SCHOOL DISTRICT.
OK, ANY OTHER THING RIGHT THEN I HAVE ANOTHER QUESTION.
HOW ARE WE FEELING AS WE PREPARE FOR SALARY INCREASES? IT WAS A LOT OF TALK AFTERWARDS LAST YEAR.
WE SHOULD HAVE STARTED EARLIER.
WE SHOULD HAVE DISCUSSED IT MORE.
SO WE HAVE IN THIS DOCUMENT THE ONE TIME PAYMENTS ARE EITHER A THOUSAND OR FIVE HUNDRED AND FIVE HUNDRED AND TWO FIFTY, SO WE HAVE THAT ONE TIME, THEN WE ALSO SAW THE PROJECTION OF THE THREE PERCENT AND THEN WE SAW THE OTHER SCENARIOS.
IS THERE ANYTHING PARTICULAR EITHER OF THOSE SCENARIOS THAT YOU WANT TO SEE.
I'M CURIOUS AS TO WHEN THE THE PAYMENT IF WE WENT TO THE PAYMENTS, WHEN THAT WOULD BE ISSUED.
SO THERE'S TWO METHODS OF THOUGHT.
SO THE FIRST METHOD OF THOUGHT COULD BE YOU DO THE ONE LUMP SUM, BECAUSE THIS TIME WE'RE LOOKING.
THIS YEAR WE DID FIVE HUNDRED.
SO NEXT YEAR WE'RE LOOKING AT IT.
NEXT YEAR, WE'RE DOING A THOUSAND.
SO BECAUSE IT'S A LONGEVITY BONUS, THERE'S YOU COULD GIVE THEM THE THOUSAND IN DECEMBER AGAIN, OR YOU CAN DO FIVE HUNDRED IN DECEMBER AND THEN FIVE HUNDRED RIGHT BEFORE SPRING BREAK.
SO THAT WAY THEY STAY THE WHOLE YEAR TO GET THEIR FULL THOUSAND.
YOU JUST DIVIDE IT IN TWO PAYMENTS IF YOU WANT TO DO IT.
SO THERE'S SOME LEVERAGE THAT THAT WE AS A TEAM OF EIGHT CAN LOOK AT.
IT DOESN'T NECESSARILY HAVE TO LOOK EXACTLY THE WAY IT DID THIS YEAR.
BUT, YOU KNOW, THE THE RISK THAT YOU HAVE IS YOU GIVE A THOUSAND DOLLARS FOR STAYING WITH US AND THEN THEY RETIRE, THEY RETIRE.
THEY THEY LEAVE THE DISTRICT OR SOMETHING HAPPENS IN JANUARY.
AND THEY WANT YOUR INCENTIVE RIGHT.
COULD I MAKE A RECOMMENDATION THAT WE DISCUSS THAT IN THE FINANCE COMMITTEE MEETING SO THAT WE BECAUSE IT'S GOING TO BE A LENGTHY TOPIC.
AND I GUESS BUT IT'S FINE, BUT WE STILL CAN GIVE THEM DIRECTION WHEREVER WE WANT IT BROUGHT BACK.
LOPEZ, YOU MADE A A DEFINITE COMMENT JUST THEN WHEN ACTUALLY IN OUR BOOK WE HAVE A CHOICE .
CAN I HIGHLIGHT TO THAT COMMENT DR.
IF A ONE TIME PAYMENT IS GIVEN IN DECEMBER, IT IS NOT TRS ELIGIBLE.
MEANING IF AN EMPLOYEE MAKES FIFTY FIVE THOUSAND DOLLARS AND WE GIVE A ONE TIME PAYMENT TO GET THEM TO FIFTY THOUSAND FIFTY FIVE THOUSAND FIVE HUNDRED, THAT FIVE HUNDRED DOLLARS WILL NOT BE REPORTED AS ELIGIBLE TRS RETIREMENT.
IF THE PAYMENT IS MADE AFTER WORK IS PERFORMED OR DURING WORK IS PERFORMED TO THE CONTRACT YEAR, IT DOES BECOME TRS ELIGIBLE, MEANING IT WOULD COUNT TOWARDS THAT RETIREMENT.
OK, SO IN KEEPING WITH MR. BEACH'S SUGGESTION THEN RIGHT NOW AS WE LOOK AT APRIL FINANCE COMMITTEE, HE IS SUGGESTING THAT WE PUT ON THAT COMMITTEE DISCUSSION AND I DON'T NECESSARILY DISAGREE.
OUR RAISE SCENARIOS ARE DECISIONS THAT WE'RE GOING TO TALK ABOUT.
WHAT DID YOU CALL IT? LONGEVITY BONUS.
JUST SO THAT THEY WOULD STAY FOR THE NEXT YEAR.
THESE ARE THESE ARE BUT THERE'S OPTIONS FOR THE THE BOARD ALL THE WAY THROUGH.
BUT I THINK TAKING IT OUT OF A WORKSHOP AND I AGREE THAT THAT IS THE TOPIC THAT WE
[02:40:05]
ARE GOING TO DISCUSS.SO AS YOU PREPARE YOUR DOCUMENTS FOR THE COMMITTEE MEETINGS FOR FINANCE, THEN YOU ALL WOULD INCLUDE THAT AS A TOPIC.
AND WE CAN ADD THAT INFORMATION TO THIS.
THIS IS OUR PROJECTION FOR NEXT YEAR.
JUST FOR HIGH LEVEL, WE CAN ADD A LINE ITEM TO SHOW WHAT A ONE TIME PAYMENT IMPACT IS ON THE BUDGET.
WELL, I GUESS WHAT YOU HEARING IS IT'S GOING TO BE A LOT OF DISCUSSION AND THE BOARD WANTS TO HAVE A LOT OF INPUT.
THAT'S WHAT IT'S WHAT I'M PICKING UP ON.
AND JUST FROM SPEAKING FOR ME AND I'M NOT A MEMBER OF THE FINANCE COMMITTEE, BUT I'M SURE I'LL BE PART OF THE MEETINGS AS A SERVING BOARD MEMBER, YOU KNOW, BUT AS AS WE CLEAR UP THE CRYSTAL BALL A LITTLE BIT, AS I GET MORE INFORMATION WITH REGARD TO POTENTIAL SAVINGS OR SAVINGS THAT WE THINK WE CAN ACHIEVE, BOTH FROM PROGRAMS AND SALARIES AND ALL THE DIFFERENT THINGS.
IN OTHER WORDS, AT THIS POINT, WE'RE ALREADY LOOKING AT A TWENTY, THIRTY MILLION DOLLAR DEFICIT.
SO TO ME, IN ORDER TO BE LOOKING AT RAISES OR EVEN ONE TIME PAYMENTS, WE'VE GOT TO LOOK AT WAYS TO SAVE THAT MONEY WITH WHICH TO MAKE THAT PAYMENT.
I'M NOT REAL COMFORTABLE WITH INCREASING OUR DEFICIT.
SO I GUESS WHAT I'M SAYING IS ONCE I GET TO THE END AND KIND OF KNOW WHAT THE TOTAL SAVES ARE.
I CAN MAKE A MUCH BETTER DECISION AS A BOARD MEMBER ABOUT WHAT WE CAN AFFORD TO DO IN TERMS OF OUR EITHER.
AND THAT'S WHAT WE DID LAST YEAR.
AND SOME PEOPLE WERE GREAT WITH THAT AND SOME PEOPLE WERE NOT GREAT WITH IT.
SO THAT'S WHY I'M SAYING WE PUT IT ON THE TABLE EARLY ENOUGH TO DISCUSS.
THIS IS AN I LINDA GRIFFIN COMMENT, IS THAT FOR WHAT OUR STAFF HAS GONE THROUGH DOING THIS COVID PERIOD I JUST THINK THAT THE TOP OF OUR CONSIDERATION SHOULD BE WHAT THEY HAVE SACRIFICED AND GIVEN TO THIS DISTRICT FOR US TO GET THROUGH THIS COVID AND PANDEMIC.
AND AGAIN, THAT'S JUST A LINDA GRIFFIN BASIC COMMENT.
SO WE'RE GOING TO MOVE THAT TO THE COMMITTEE.
I JUST WANT TO SETTLE ON THAT, THAT WE'RE GOING TO DO THAT.
BEFORE WE GET [INAUDIBLE] YOU ALL HAVE EVERYTHING SOUNDS LIKE IT WAS JUST A FEW THINGS NEEDED FOR YOU TO BRING BACK IN THE WORKSHOP AND WHATEVER UPDATED INFORMATION YOU'RE GOING TO BRING US.
AND THEN WE'RE MOVING THE RAISE SCENARIO TO THE COMMITTEE.
I WAS JUST GOING TO SAY, WAS THERE A DECISION THAT NEEDED TO BE MADE? WE TALKED A LOT ABOUT DISASTER DECLARATIONS.
WHAT DO WE NEED TO DO ANYTHING WITH THAT? NO, SIR, NOT AT THIS TIME.
WE WILL BRING THAT BACK IN APRIL TO SHOW THE IMPACT OF THAT.
AND AS THE SESSION PROGRESSES IN AUSTIN, WE'LL ALSO LEARN MORE INFORMATION ABOUT THOSE DETAILS.
BUT WE WILL JUST SINCE THAT DEALS WITH NEXT YEAR'S BUDGET AND THE TAX RATE IS NOT ADOPTED UNTIL AUGUST, WE CAN BRING THAT BACK IN APRIL DURING THE NORMAL SESSION TIMEFRAME.
MANY OF THE DECISIONS THAT THE BOARD MAKES IS GOING TO BE LIKE A DOMINO EFFECT, RIGHT.
SO AFTER YOU DECIDE WHAT KIND OF RAISES THAT WE CAN AFFORD, THEN WE DECIDE, DO WE GO FOR ANOTHER TRE, DO GO FOR DISASTER PENNIES? WHAT DO WE NEED TO DO? AND THE SOONER WE MAKE THAT DECISION, THE LONGER RUNWAY WE HAVE IN THE SUMMER TO REALLY PLAN AND DO IT EFFECTIVELY IF IT REQUIRES ANOTHER TRE ACTION.
IF IT DOESN'T REQUIRE A TRE ACTION, THEN THEN WE CAN PROCEED HOWEVER YOU WANT WITH DISASTER PENNIES, NON DISASTER PENNIES, TAKING IT OUT OF FUND BALANCE.
BUT RIGHT NOW, IN THE SITUATION WHERE WE'RE AT, THERE'S NO PERFECT SCENARIO.
AND THAT'S WHY PART OF THE BUDGETING IS ADA.
AND IN APRIL, WE'RE GOING TO PRESENT TO THE BOARD ANOTHER TOOL TO HOPEFULLY GAIN MORE ADA WHICH IS GOING TO BE OPEN ENROLLMENT.
NOW, IF WE DO GET IF WE DO GET OUR CARES FUNDING, OK, THAT DOES HELP SIGNIFICANTLY, ESPECIALLY WITH THE AMOUNT OF MONEY THAT WE'RE DUE.
NOW, I'M NOT GOING TO PLAN ON THAT TYPE OF MONEY, BUT THOSE ARE THE THINGS THAT WE NEED FOR THINGS TO LINE UP FOR US TO MAKE DECISIONS WITH CLARITY.
AND RIGHT NOW, BECAUSE THEY'RE HOLDING ON TO ALL THAT MONEY, IT'S HARD TO FORECAST EXACTLY WHAT'S GOING ON.
SO THE MONTHLY UPDATES WILL HELP US IN THE LONG RUN.
AND MY LAST COMMENT IS, ARE WE AS A DISTRICT GOING TO BE TALKING TO SENATOR DUTTON, WHO IS LEADING THE EDUCATION COMMITTEE IN THE SENATE AND WHO'S IN THE HOUSE? DUTTON IS IN THE HOUSE.
[02:45:03]
AND SENATE IS [INAUDIBLE].SO ARE WE GOING TO STATE ANY POSITIONS TO THOSE REPRESENTATIVES IN LIEU OF AN, TO HELP US WITH OUR POSITION ON THE CARES FUNDING OR ESSER ONE OR ESSER TWO FUNDING THAT'S WHAT IT'S OFFICIALLY CALLED FROM THE FEDERAL GOVERNMENT.
ARE WE GOING TO PURSUE THOSE REPRESENTATIVES THAT ARE SITTING ON THE EDUCATION COMMITTEE ALONG WITH OUR REPRESENTATION, LEGAL LEGISLATIVE REPRESENTATION OF THE DISTRICT AND THE REST OF THE HOUSE MEMBERS AND THE REST OF THE SENATE MEMBERS.
MS. GRIFFIN, I HAVE ALREADY STARTED THAT PROCESS AND HAVE ALREADY REACHED OUT TO A NUMBER OF COMMITTEE MEMBERS.
I'VE MET WITH EITHER THEIR DELEGATES OR THEM PERSONALLY ON INITIATIVES AND THE FUNDING THAT WE FEEL WE DESERVE.
MOST OF THEM HAVE BEEN VERY RECEPTIVE.
THERE'S VERY FEW CONTROVERSIAL BILLS THAT WE'VE ASKED THEM TO KILL.
ONE IS A CAP ON OR NOT A CAP, A MANDATORY TWENTY FIVE PERCENT OF THE REGISTERED VOTERS NEED TO VOTE FOR OR AGAINST THE TRE OR BOND PROGRAM AND IF YOU DON'T MEET THE TWENTY FIVE PERCENT THRESHOLD THAT DISQUALIFIES THE BILL, WE'RE SAYING NO TO THAT ONE.
THE OTHER ONE, OF COURSE, IS THE ONE THAT SAYS THAT WE NEED TO USE OUR FUND BALANCE.
YEAH, BUT THE REST, ONE OF THE OTHER BILLS IS TO FULLY FUND VIRTUAL SCHOOLS.
THAT'S ANOTHER THING THAT WE'RE ASKING FOR.
AND I GUESS THE OTHER THING THAT I HEARD FROM LISTENING TO SOME OF THE HEARINGS IS THE REPRESENTATIVES AND SENATORS ARE ASKING US IF WE HAVE A POSITION IN OUR DISTRICT TO NOT NECESSARILY SIGN ON TO PETITIONS AND OTHER DOCUMENTS THAT ARE FLOATING AROUND FOR SCHOOL DISTRICTS TO SIGN THAT THERE ARE MORE INCLINED TO READ OUR INDIVIDUAL INFORMATION THAN TO SEE THAT WE'VE SIGNED ON WITH SOME OTHERS.
IN FACT, I HEARD ONE SAY WHEN I SEE THE LIST AND WHO ALL HAVE SIGNED IN SUPPORT OF WHATEVER YOUR POSITION IS THAT THEY ACTUALLY TRASH IT.
SO THAT'S I THOUGHT THAT THAT WAS VERY INTERESTING.
SO TRUSTEES ARE THERE ANY IS THERE ANYTHING ELSE WE NEED TO DISCUSS AS WE TRY TO WIND DOWN THIS WORKSHOP.
I HAD HELD A COUPLE OF QUESTIONS TO THE END OF THEIR PRESENTATION.
I WANTED TO GO BACK OVER JUST FOR MY CLARIFICATION.
AND THANK YOU SO MUCH TO YOUR STAFF, DR.
RINGO AND MS. MAYO, FOR EVERYTHING YOU DID.
WE REALLY APPRECIATE I'M GOING TO PUT US ON THE CLOCK, WE ARE TO BE THROUGH AT 4.
WE FINISHED EARLY BECAUSE THEY NEED TO THEY NEED A BREAK BEFORE THE MEETING.
I UNDERSTAND, BUT YOU'VE GOT TO GIVE ME A CHANCE TO ASK MY QUESTIONS.
WE'RE HERE, SO LET'S GET THIS DONE.
MY QUESTIONS ARE WITH RESPECT TO OUR FUNDING.
YOU SAY THAT WE'RE LIMITED BY ADA, THAT LIMITS THEM AMOUNT OF MONEY THAT WE CAN GET IN THE BUDGET.
SO SHOW ME HOW OR EXPLAIN TO ME HOW THE FORMULA WORKS, LIKE WHEN WE RAISE OUR TAXES, THAT GIVES US EXTRA MONEY THAT WE CAN KEEP IRRESPECTIVE OF OUR ADA.
WHERE WILL THAT IMPACT BE SEEN? IT.
SO WHEN WE GO TO OUR TEMPLATE AND THIS IS A VERY HIGH LEVEL, MS. MILLER, I WILL GIVE A MORE CLEAR ANSWER BECAUSE THE TEMPLATE IS VERY CONFUSING.
BUT EVERY PENNY OF TAX EFFORT GENERATES MORE MONEY PER STUDENT.
SO AS THAT PENNY GOES UP, WE GET TO KEEP AND WE GET A LOT AND MORE MONEY PER STUDENT IN THAT SYSTEM.
SO THE THE STATE GUIDELINE OF SO MANY DOLLARS PER STUDENT, DEPENDING ON THE PIEMS RANKING OR THE STUDENT'S CLASSIFICATION, THAT CHANGES WHEN YOU INCREASE YOUR TAX RATE.
AND SO IT'S GOING TO BE A LOT OF SINCE THE VOTERS APPROVED US TO TAX AT A HIGHER RATE ITS PER PENNY OF TAX EFFORT.
SO PER PENNY OF TAX EFFORT THAT GOES UP, WE GET TO GET MORE MONEY PER STUDENT AND THAT'S HOW THAT FIFTY MILLION DOLLARS WOULD COME TO THE DISTRICT ADDITIONALLY, FOR THAT SAME AMOUNT OF STUDENTS THAT WE OR ADA THAT WE HAVE IN PLACE.
PER PUPIL COST AGAIN, THIS WAS REDUCED DUE TO HAVING THREE MONTHS OF COVID.
BUT I WANT TO SAY IS ROUGHLY EIGHTY SIX, EIGHTY NINE HUNDRED PER PUPIL.
I WOULD NEED TO VERIFY THAT NUMBER THOUGH, LOOKING AT LAST YEAR'S EXPENDITURES.
BUT IF WE WOULD HAVE HAD AN OPERATIONAL FULL OPERATIONAL YEAR LAST YEAR, BUSSES RUNNING PEOPLE BEING IN THE BUILDINGS THAT COST IT WOULD HAVE GONE UP A BUT DUE TO THE COVING
[02:50:01]
IMPACT AND ACROSS THE STATE, EXPENDITURE PER PUPIL DID GO DOWN.BUT THE TYPICAL WHAT I SAW OF FUNDING PER STUDENT WAS WHAT SIXTY EIGHT HUNDRED DOLLARS OR.
THAT ONLY INCLUDES WHAT WE'RE ALLOTED PER KID IN OUR GENERAL FUND.
REVENUE FOR GATE RECEIPTS, ALL THAT OTHER.
BUT WHAT YOU'RE SAYING IS IN THE FORMULA, WHEN YOU RAISE YOUR TAX RATE, IT AUTOMATICALLY INCREASES THAT ADA.
THAT'S WHAT I DIDN'T UNDERSTAND PER STUDENT.
JUST WANTED TO EXPRESS APPRECIATION FOR YOU AND THE FINANCE COMMITTEE AND THE WORK THAT YOU DID WITH DR RINGO AND HIS STAFF, MS. MAYO.
ALL THE WORK THAT YOU GUYS HAVE DONE.
DR LOPEZ, DO WE HAVE ANY EXECUTIVE SESSION ITEMS? THERE ARE NONE.
DO WE HAVE A MOTION FOR ADJOURNMENT? IT IS 3:51 AND THIS MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.