Apr 27, 2021 Workshop

[00:00:01]

GOOD AFTERNOON IS NOW 3 O'CLOCK, AND I WANT TO WELCOME TO THE GARLAND INDEPENDENT SCHOOL

[I. Call to Order and Determination of a Quorum]

MEETINGS OF THE BOARD OF TRUSTEES WILL BE HELD IN THE BOARDROOM AT 601 SOUTH JUPITER ROAD, GARLAND, TEXAS, 75042.

DUE TO HEALTH CONCERNS RELATED TO THE COVID-19 CORONAVIRUS, MEMBERS OF THE PUBLIC MAY ATTEND BOARD MEETINGS IN THE GARLAND ROWLETT ROOMS OF HARRIS HILL 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 SOCIAL DISTANCING. NUMBER THREE PUBLIC FORUM.

MS. HOGAN. ARE THERE ANY PUBLIC FORUM COMMENTS? NO SIR. THANK YOU.

ITEM 4 SUPERINTENDENTS MESSAGE.

[IV. Superintendent's Message]

WE'VE BEEN DOING THIS BUDGET PRESENTATION SINCE I WOULD SAY JANUARY.

AND THESE ARE OUR MONTHLY UPDATES.

AND WHAT WE DO IS NOW TAKE THINGS IN MANAGEABLE PARTS AS WE APPROACH THE FINAL BUDGET APPROVAL FOR JUNE.

TODAY, WE'RE GOING TO BE GOING OVER SALARY RECOMMENDATIONS AND THOSE THINGS OF THAT NATURE SO FUTURE DECISIONS CAN BE IMPACTED AND UPCOMING BOARD MEETING AND FUTURE BOARD MEETINGS. THANK YOU.

[V.A. Planning for 2021-2022 Fiscal Year: General Fund, Student Nutrition Fund, and Debt Service Fund]

DR. RINGO AND MS. MAYO. MR. SELDERS, BOARD OF TRUSTEES, DR.

LOPEZ, GOOD AFTERNOON. TODAY, WE WILL CONTINUE OUR DISCUSSION OF THE 21 22 BUDGET PLANNING.

AS DR. LOPEZ NOTED WE STARTED THIS PROCESS AND THESE PROJECTIONS IN JANUARY, THEN AGAIN IN FEBRUARY AGAIN IN MARCH AND NOW IN APRIL.

THE ONLY CHANGES THAT YOU SEE ARE NOTED FROM EACH OF THOSE DISCUSSIONS.

FOR THE MOST PART, EVERYTHING HAS REMAINED THE SAME.

TODAY, WE'RE GOING TO COVER A LEGISLATIVE UPDATE VERY QUICK OF WHAT'S HAPPENING DOWN IN AUSTIN AND WHAT WE'RE SEEING.

DO A VERY HIGH LEVEL PROGRAM FUNDING ANALYSIS, WHICH IS A HANDOUT THAT YOU RECEIVED TODAY, THE TWENTY ONE TWENTY TWO BUDGET PLANNING FOR THE GENERAL FUND STUDENT NUTRITION FUND AND DEBT SERVICE FUND AND THEN CLOSE WITH ANY COMMENTS OR QUESTIONS.

AS DISCUSSED PRIOR COVID AND THE LEGISLATIVE SESSION ARE STILL CREATING A LOT OF FORECASTING. THERE'S STILL A LOT OF DETAILS BEING WORKED OUT IN AUSTIN.

AND SO WE DO KNOW THERE IS A COVID IMPACT.

WE'VE SEEN OUR DEMOGRAPHER REPORT COVID HAS IMPACTED OUR STUDENT NUTRITION BUDGET BY HAVING A DEFICIT BUDGET LAST FISCAL YEAR.

AND AGAIN, THIS FISCAL YEAR, WHICH WE'VE BEEN DISCUSSING EXTENSIVELY, HAS IT RETURNED TO NORMAL OPERATIONS NEXT SCHOOL YEAR, IT SHOULD BE ABLE TO SUSTAIN ITSELF AGAIN.

BUT WE KNOW THERE'S BEEN AN AVERAGE DAILY ATTENDANCE IMPACT.

AND AS WE WILL CONTINUE TO SAY, EXPECT REVENUE ADJUSTMENTS, EITHER POSITIVE OR NEGATIVE AS WE GO THROUGH THE LEGISLATIVE SESSION AND CONTINUE WITH IMPACT OF COVID INTO TWENTY ONE, TWENTY TWO.

87TH LEGISLATIVE SESSION.

THERE ARE THINGS EMERGING WITH THE STATE BUDGET, REDISTRICTING AND COVID.

RIGHT NOW YOU'VE HEARD ABOUT THE SCHOOL FINANCE BILL IN REGARDS TO FUND BALANCE.

THAT DOES NOT LOOK LIKE THE 110 DAY CAP WILL GO THROUGH AT THIS TIME.

HOWEVER, WITH THE SESSION STILL REMAINING, THERE'S A LOT THAT CAN HAPPEN.

BUT YOU CAN SEE A NUMBER OF BILLS HAVE BEEN FILED, THE BILLS TRACKED AND THE PERCENT THAT HAVE PASSED USUALLY BY THE END OF THE SESSION.

KEY BILLS THAT ARE UNDER DISCUSSION, I'VE ALREADY NOTED THE FUND BALANCE BILL, WE'VE SEEN THAT VERBIAGE IN THAT BILL PROPOSED BILL CHANGE FROM ONE HUNDRED, TEN DAYS TO 180 DAYS.

FEDERAL RELIEF FUNDING IS A KEY POINT THERE ARE ONLY TWO STATES IN THE UNITED STATES THAT HAVE NOT RECEIVED ANY OF THE FEDERAL DOLLARS FROM ESSER 2 OR ESSER 3 US AND NEW YORK.

SO OUR STATE GOVERNMENT IS HOLDING THOSE DOLLARS AT THE STATE LEVEL AND HAVING DISCUSSIONS ON IF AND HOW AND WHEN TO RELEASE THOSE DOLLARS AND IF THEY SUPPLANT THOSE DOLLARS AS THEY'VE DONE HISTORICALLY, MEANING IF WE WERE TO GET A HUNDRED DOLLARS IN FEDERAL FUNDING THE STATE HAS HISTORICALLY CUT ONE HUNDRED DOLLARS IN STATE FUNDING WHEN THAT HAS OCCURRED.

AND THEN A LOT OF DISCUSSION WITH CHARTER SCHOOL BILLS GOING ON TOO.

THAT LEADS INTO A PROGRAM FUNDING ANALYSIS.

WE WILL START WITH THE PRINT OUT THAT YOU HAVE AT YOUR DESK THAT'S IN FRONT OF YOU.

AND WHAT THIS IS, THIS IS NOT AN AUDIT, YOU KNOW, AS YOU KNOW, AN AUDIT AS WE'VE SEEN WITH WORKING WITH GIPS CONSULTING TAKES MONTHS FOCUSING ON ONE PROGRAM OR ONE AREA.

THIS WAS A PROGRAM FUNDING ANALYSIS THAT HAS BEEN DISCUSSED WHERE EACH DIVISION LOOKED AT ALLOCATED DOLLARS, BOTH PAYROLL AND ON PAYROLL, ON OUR BUDGET AND THE VARIOUS PROGRAMS

[00:05:01]

AND SO AS YOU GO ACROSS THE COLUMNS, THE PROGRAM IS LISTED, AS YOU NOTICE FINE ARTS.

WELL, THAT ENCOMPASSES BAND, CHOIR, MANY OF OUR FINE ART PROGRAMS. WHEN YOU SEE ATHLETICS, THAT ENCOMPASSES FOOTBALL, BASKETBALL, TRACK.

SO IT'S A COMBINED DOLLAR AMOUNT FOR THOSE PROGRAMS. BUT YOU CAN SEE WHAT THE PAYROLL DOLLARS ARE COMMITTED TO IN THE BUDGET, THE NUMBER OF PERSONNEL COMMITTED TO UNDER THOSE DOLLARS, WHETHER THAT BE A STIPEND AND OR SALARY NONPAYROLL DOLLARS COMMITTED TO THAT PROGRAM, TYPICALLY THE SNAPSHOT OF THE NUMBER OF STUDENTS INVOLVED IN THAT PROGRAM.

SO THAT SNAPSHOT, A NUMBER OF STUDENTS CHANGES YEAR TO YEAR IN PROGRAM TO PROGRAM IT CAN GO UP AND DOWN. THEN WHAT WE HAVE NOTED IS DOES IT GENERATE STATE FUNDING? IF THERE'S A WHY IN THAT COLUMN THAT MEANS IT'S GOING TO GENERATE STATE FUNDING.

WITH THE CRITERIA USED IN THE FUNDING ANALYSIS JUST AS FAR AS IMPACT WITH STUDENTS, DOES IT IMPACT CCMR? DOES IT GENERATE STATE FUNDING? DOES IT IMPACT EARLY LITERACY OR IMPACT MATH? AND THAT IS WHERE THE WHY'S COME INTO.

AND SO WHAT THIS HIGHLIGHTS IS A PROGRAM FUNDING REVIEW, NOT A AUDIT.

OUR GOAL HAS NOTED IN PRIOR DISCUSSIONS WAS TO NOT IMPACT OR REDUCE OR CUT PROGRAMS. AND SO THAT HAS NOT BEEN DONE IN ANY PART OF THE BUDGET PLANNING PROCESS.

HOWEVER, WHAT IS INCLUDED ON HERE IS JUST THAT WHAT IT IS AN ANALYSIS OF THAT PROGRAM WITH THE AMOUNT OF FUNDING ALLOCATED TO IT, I WILL NOT READ THROUGH EACH ONE, AS YOU CAN SEE WHAT THOSE ARE. AND AS IT GOES DOWN THE LIST, BECAUSE IT EVEN TALKS ABOUT IT COMBINES OUR MAGNET PROGRAMS AT THE HIGH SCHOOL LEVEL, MAGNET PROGRAMS AT THE MIDDLE SCHOOL LEVEL, MAGNET PROGRAMS AT THE ELEMENTARY AP SAT TESTING EVEN OUR UTILITIES, OUR SECO LOAN THAT WAS DONE FOR SOME OF OUR MAINTENANCE UPGRADES AND THEN THE SECOND QUARTER OF THE PAGE, OUR PROGRAM INTENT CODES.

THIS IS WHAT GENERATES FUNDING WITHIN THE STATE FUNDING FORMULAS.

AND SO YOU CAN SEE GIFTED AND TALENTED DOES NOT GENERATE STATE FUNDING ANYMORE.

SO AS YOU GO DOWN THAT LIST OVER ON THE RIGHT, WE MUST MAINTAIN OUR EXPENDITURES TO SUPPORT THAT PROGRAM. BUT HOUSE BILL THREE CUT REVENUE FOR SCHOOL DISTRICTS IN THAT.

CURRENT COLLEGE EDUCATION. THAT MAY NOT BE NUMBER OF STUDENTS AS THEY ALLOCATE FUNDS, IT COULD BE BASED OFF CONTACT HOURS.

THE NUMBER OF HOURS THE KID IS IN THAT CLASS SO ADVANCED COURSES HAVE GREATER CONTACT HOURS. IT GENERATES MORE FUNDING FOR ADVANCED CTE COURSES.

AND AS YOU GO DOWN, YOU CAN SEE WHAT THAT DOES GENERATE FOR THE SCHOOL DISTRICT IN REGARDS TO I'M SORRY.

WHAT WE SPEND OUT IN PAYROLL, IT DOES NOT REFLECT WHAT WE GENERATE IN REVENUE.

WE HAVE SHOWN THAT IN OUR PRIOR BUDGET PRESENTATIONS WHAT IT DOES GENERATE IN REVENUE.

BUT YOU CAN SEE WHAT WE ARE SPENDING IN REGARDS TO THE PAYROLL, THE NUMBER OF PERSONNEL, THE NON PAYROLL BUDGET AND THE NUMBER OF STUDENTS IT DOES IMPACT OR CONTACT HOURS.

IT DOES NOT NECESSARILY MEAN A NUMBER OF STUDENTS.

IT IS A LOT OF INFORMATION AND A LOT OF DETAIL.

MS. GRIFFIN. YES THANK YOU FOR THIS SHEET.

WHEN WE GO DOWN TO I'M TRYING TO PICK AN EXAMPLE TO ASK MY QUESTION, I GUESS I'M GOING TO PICK AP AND SAT TESTING.

WITH CCMR BEING PART OF THE ACCOUNTABILITY NOW, AREN'T WE REIMBURSED FOR THE TESTING OR A PORTION OR WHAT IS THAT? GREAT QUESTION, MS. GRIFFIN.

WE ARE REIMBURSED FOR ONE TEST, THAT A STUDENT TAKES.

AND ONE STUDENT MAY TAKE THREE TESTS, BUT WE WILL BE REIMBURSED FOR ONE OF THOSE TESTS.

SO THIS NUMBER, THOUGH, THAT APPEARS THAT HE IS OUR NON PAYROLL NUMBER THAT WOULD TAKE INTO CONSIDERATION THE FUNDS THAT WE GET REIMBURSED.

HOW DOES THAT WORK? THE NUMBERS YOU SEE HERE, ALL THE DOLLARS ALLOCATED IN THE EXPENSE BUDGET. AND SO THAT'S A GREAT CLARIFYING QUESTION.

ON THE REVENUE SIDE, WE GENERATE ROUGHLY, I BELIEVE, TWO HUNDRED THOUSAND DOLLARS.

SO WHAT WE ALLOCATED HERE BASED ON REQUESTS FOR WHAT WE HAVE ALLOCATED ON OUR EXPENDITURE SIDE. ON THE REVENUE SIDE, WE DO NOTE IF IT DOES GENERATE FUNDING, BUT WE DON'T GENERATE AS MUCH FUNDING AS WE PAY OUT FOR OUR SAT ACT TESTING BECAUSE IT ONLY PAYS FOR ONE REIMBURSEMENT PER STUDENT.

SO WE COULD KIND OF EASILY SAY THIS IS OUR NET AMOUNT.

YES, MA'AM. OK, BASED ON EVERYONE, THAT'S TAKEN OK, BECAUSE THAT'S BEEN A QUESTION SINCE HOUSE BILL THREE AND GETTING DIFFERENTIATING FUNDS.

AND IT'S JUST, YOU KNOW, IN OUR EXPENSES, HAVE WE ALREADY TAKEN THAT INTO CONSIDERATION?

[00:10:05]

THAT IS ONLY ONE AP TEST PER YEAR PER STUDENT.

FOR THEIR WHOLE HIGH SCHOOL CAREER.

OK, ALL RIGHT.

AND SO, FOR MY BOYS WHO WILL COME UP THROUGH GISD MY OLDEST, THEY'LL PAY FOR ONE EXAM UNDER CURRENT LAW, HIS FOUR YEARS IN HIGH SCHOOL THAT WE'LL GET REIMBURSED FOR.

SO JUST ONE TEST ONLY.

OK, THANK YOU. MR. RINGO. MR. BEACH.

DR. EXCUSE ME.

GISD EMPLOYEE CLINIC AND HEALTH SERVICES.

DO THEY NOT GO HAND IN HAND? LET ME MAKE SURE WHERE YOU'RE LOOKING AT ON HERE, MR. BEACH. THE EMPLOYEE CLINIC.

AND THEN THREE AND FOUR DOWN FROM IT IS HEALTH SERVICES.

THEY ARE TWO DIFFERENT DEPARTMENTS AND SO HEALTH SERVICES NURSE K.

AND HER TEAM, YOU KNOW, THEY'RE WORKING WITH OUR DISTRICT AND CAMPUS NURSES AND MEETING OUR STUDENTS NEEDS AT THE CAMPUS LEVEL, THE GISD EMPLOYEE CLINIC, THOSE ARE FOR EMPLOYEES AND OR THEIR FAMILY MEMBERS TO VISIT AT A SEPARATE SITE LOCATION THAT IS OFF GEORGE BUSH.

OK, THAT ANSWERED THAT QUESTION FOR ME.

AND THEN THE NEXT QUESTION I HAD WAS SECO, S E C O.

I THOUGHT THAT HAD GONE AWAY.

I THOUGHT WE WERE DONE WITH THAT.

IS THAT A SECO LOAN. YES, SIR.

WE'RE DONE WITH THE PROJECTS.

BUT UNDER THOSE AGREEMENTS THAT WERE APPROVED BY THE BOARD OF TRUSTEES IN THAT CONTRACT, WE PAY THAT OFF OVER IT MAKES IT A FIVE AND A HALF YEAR WINDOW AT THAT ONE PERCENT INTEREST. AND SO THAT HAS BEEN REFLECTED AN BUILT INTO OUR BUDGET WHEN THAT WAS APPROVED BY THE BOARD OF TRUSTEES.

SO THAT HAS NOT GONE AWAY YET.

THE PROJECTS ARE COMPLETE, BUT WE ARE PAYING THAT BACK.

AND WITHIN THAT, THAT MAINTENANCE DEPARTMENT PROVIDES AN UPDATE EACH YEAR TO SHOW THAT THE SAVINGS WE'RE GENERATING FROM THOSE UTILITY AND MAINTENANCE UPGRADES PAYS FOR ITSELF IN THIS LOAN BECAUSE IT WAS DONE AT ONE PERCENT.

IT WAS A STATE ENERGY INITIATIVE FOR DISTRICTS AND CITIES TO TAKE THAT OPPORTUNITY.

THANK YOU.

MR. GLICK. THANK YOU.

UNDER YOUR TOPIC THE NUMBER OF PERSONNEL, SO FOR FINE ARTS AND ATHLETICS, YOU'RE JUST COUNTING THE MAIN OFFICE.

WOULD THAT BE CORRECT? WE ARE WORKING WITH THE AREAS OVER THAT DIVISION AND JUST WORKING WITH POSITION CONTROL.

WE WERE COUNTING THE CENTRAL OFFICE, BUT THEN ALSO IN THE IDENTIFICATION CAMPUS LEVEL EMPLOYEES. SO, FINE ARTS WOULDN'T MAKE ANY SENSE THEN TO ME BECAUSE YOU SAY YOU SHOWED TWELVE AND.

I WILL LET MS. MAYO SPEAK TO THAT REAL QUICK.

IT'S DEPARTMENT EXPENSES.

IT IS NOT CAMPUS RELATED POSITIONS.

JUST. YES. THANK YOU.

MS. GRIFFIN. YES, I DON'T SEE IT.

BUT IN KEEPING WITH THAT SAME PREVIOUS QUESTION I HAD ABOUT AP TEST FOR THE CTE AND BECAUSE THAT'S ONE OF THE DIFFERENTIAL MONETARY INDICATORS, WHAT ABOUT THE CERTIFICATION TEST AND THINGS THAT ARE BEING TAKEN OVER THERE? I MEAN, NOT JUST THERE, BUT THROUGHOUT THE WHOLE DISTRICT.

WHERE IS THAT NUMBER IN THIS LIST? SO THE FUNDING COMPONENT.

I THINK YOU'RE TALKING ABOUT THE CCMR, THE TESTING THAT GOES ALONG WITH THAT AND THAT'D BE INCORPORATED INTO THE CTE BUDGET THAT YOU'RE SEEING THERE WAS A DEPARTMENT BUDGET TH OSE EXPENSES ARE THERE THAT PAY FOR THOSE TESTING? IS THAT THE QUESTION? HANG ON.

MY GLASSES ARE FOGGING UP SO I'M TRYING TO FIND IT HERE.

MS. GRIFFIN ALSO.

I BELIEVE JUST REAL QUICK, I BELIEVE WHAT SHE'S REFERRING TO IS EACH INDIVIDUAL CTE EXAM.

HOW MUCH DOES THAT COST? THERE'S NOT A SEPARATE ITEMIZED ANALYSIS FOR THAT.

AND I THINK THE SECOND QUESTION IS, IS THAT USE FROM 199 FUNDS OR IS THAT USED FROM OUR FEDERAL STATE FUNDS? BECAUSE THOSE WOULD BE TWO DIFFERENT THINGS.

SO SOMETIMES IT DOESN'T SHOW UP HERE BECAUSE IT'S NOT PART OF THE ONE NINE NINE BUDGET? YES, SIR, THAT IS CORRECT.

AND MS. GRIFFIN, AS DR.

LOPEZ NOTED, THE REVENUE SIDE OF WHAT WE CAN GET FROM CCMR IS PROJECTED INTO OUR REVENUE BUDGET DOLLARS. ALL OF THIS ON THIS SIDE IS OUR EXPENDITURE SIDE OF WHAT WE HAVE ALLOCATED OUT FOR EXPENDITURES.

I WAS JUST TRYING TO HIGHLIGHT ALL OF THE SERVICES WE ARE PROVIDING FOR OUR STUDENTS.

THAT'S WHAT MY QUESTION STARTED WITH, SO THAT WE ARE PAYING THESE EXPENSES, YOU KNOW, REGARDLESS OF WHETHER OR NOT WE'RE GETTING REIMBURSED BY THE STATE.

AND WHEN YOU LISTEN TO HB THREE, YOU THINK THAT WE'RE GETTING MORE FOR ALL OF THAT THAN

[00:15:03]

AND THAT'S WHAT WE'VE BEEN ABLE TO DO.

SO THANK YOU. ANY OTHER QUESTIONS? I HAD A QUICK QUESTION.

SO THE PAYROLL NUMBERS AND THE NUMBER OF PERSONNEL AND WHAT YOU HAVE HERE FOR NON PAYROLL, THAT'S FOR 21 22.

YES, SIR. THAT IS FOR TWENTY ONE TWENTY.

OH I'M SORRY. THAT IS FOR CURRENT FISCAL YEAR.

WE DID AN ANALYSIS BASED OFF THE CURRENT FISCAL YEAR ALLOCATED DOLLARS.

OK. AND THOSE DO TYPICALLY ROLL FORWARD THE BUDGET MANAGER.

FOR EXAMPLE, I'LL USE ERIKA CRUMP WITH CTE BUDGET.

THERE'S A DEPARTMENT BUDGET THAT SHE MANAGES.

SHE GETS HER ALLOCATED AMOUNT AND THEN SHE BUILDS IT WITHIN THAT BUDGET FOR HER VARIOUS CTE PROGRAMS BASED OFF NEEDS, ITEMS THAT MIGHT NEED TO BE REPLACED.

BUT THESE NUMBERS ARE FOR THE 2021 FISCAL YEAR.

OK, SO THE 2021 FISCAL YEAR IS WHAT'S HERE.

AND SO ALL OF THESE PROGRAMS AND THE DEPARTMENTS RUNNING THESE PROGRAMS WILL HAVE THE SAME BUDGET ROLLING FORWARD FOR TWENTY ONE TWENTY TWO? WITH THAT 12 PERCENT REDUCTION THAT WAS IMPLEMENTED BACK IN NOVEMBER.

AND THAT'S GOING TO BE AND THAT'S ALREADY.

THAT'S ALREADY IN THE NUMBERS THE BOARD HAS BEEN LOOKING AT EACH MONTH.

RIGHT. SO IS THAT GOING TO BE FROM PAYROLL OR IS THAT GOING TO BE FROM NON PAYROLL EXPENSES? SO THE 12 PERCENT REDUCTION WAS FROM NON PAYROLL.

OK. AND THEN ON THE PAYROLL SIDE, THOSE ARE THOSE NUMBERS THAT WE'RE SHOWING IN THE TWENTY ONE TWENTY TWO PROJECTIONS THROUGH STAFFING RATIOS AND THE TASB AUDITS THAT IDENTIFIED WHERE WE'RE OVERSTAFFED AND HR MAKING THOSE REDUCTIONS ON THE PAYROLL SIDE IF THERE'S GOING TO BE A REDUCTION IN THAT AREA.

BUT FOR EXAMPLE, MANY OF OUR PROGRAMS WILL NOT HAVE A PERSON REMOVED FROM THAT PROGRAM BECAUSE THOSE ARE THE PEOPLE THAT RUN THAT PROGRAM.

AND SO OUR STAFFING REDUCTIONS HAVE PRESENTED WITH H.R., HAVE BEEN ON OUR STAFFING RATIOS AND IDENTIFYING THOSE AREAS IN OUR BUDGET THAT COULD HAVE A REDUCTION IN PERSONNEL WITHOUT IMPACTING PROGRAMS. SO DEFINE WITHOUT IMPACTING PROGRAMS. WELL, THE 12 PERCENT REDUCTION WILL HAVE AN IMPACT ON THE BUDGETS ON THE NON PAYROLL SIDE. BUT IN ORDER TO SUSTAIN THAT PROGRAM, THE PERSON RUNNING IT IS GOING TO STAY IN THAT POSITION AND KEEP RUNNING THAT PROGRAM.

SO, YOU KNOW, IF WE WERE TO REMOVE, I'LL USE MY BROTHER, I'M A FORMER COACH.

MY BROTHER'S A COACH. IF WE WERE TO GET RID OF THE BASKETBALL COACHES, WE WOULD NOT HAVE A BASKETBALL PROGRAM. AND SO THAT'S WHAT WE'RE NOT DOING.

OK, BUT IF WE HAVE PROGRAMS THAT WE'RE CURRENTLY RUNNING WITH SEVEN PEOPLE AND THERE WAS A REDUCTION, AND YOU'RE SAYING THAT WITH THE REDUCTION OF THE 12 PERCENT NON PAYROLL REDUCTION, IF NOW YOU'RE SAYING THAT YOU CAN POTENTIALLY RUN IT WITH FIVE, THEN WE HAVE TWO PEOPLE THAT MIGHT BE REASSIGNED.

IS THAT WHAT I'M HEARING? NO, SIR.

I CAN LET DR. RUSSELL SPEAK TO THE PROGRAM SPECIFICALLY.

BUT WE ARE NOT, FOR EXAMPLE, REDUCING THE NUMBER OF COACHES IN ATHLETICS OR REDUCING AT THE CAMPUS LEVEL. BUT I'LL LET DR.

RUSSELL SPEAK TO THE DETAILS OF THE STAFFING RATIOS.

ONE EXAMPLE. HOLD ON.

I'M STUCK ON MY EARING.

ONE EXAMPLE MIGHT BE LOOKING AT BAND NUMBERS AT A HIGH SCHOOL.

AND IF THEY HAVE LOW BAND NUMBERS, SAY 60 KIDS, 80 KIDS VERSUS SOME OF OUR BANDS HAVE TWO HUNDRED PLUS KIDS, THAT MIGHT BE ONE WHERE WE MIGHT NOT CUT THE PROGRAM.

WE'RE NOT IMPACTING THE PROGRAM, BUT WE MIGHT MOVE FROM THREE BAND DIRECTORS TO TWO BAND DIRECTORS AND THEN REASSIGN THAT THIRD BAND DIRECTOR TO AN OPENING THAT WE WOULD HAVE NORMALLY FILLED WITH AN FTE.

AND THEN WE HAVE AN FTE SAVE.

DOES THAT MAKE SENSE? WE'RE NOT CUTTING ANY COACHING POSITIONS AT ALL FOR ATHLETICS? NO. I MEAN, I WAS ASKING SPECIFICALLY FOR ATHLETES.

I WAS JUST TALKING IN GENERAL.

SO IN THAT EXAMPLE THAT YOU GAVE, THEN, IF YOU'RE NOT CUTTING A POSITION NECESSARILY FOR THAT PARTICULAR BAND PROGRAM, BUT YOU ARE REALLOCATING.

I'M REALLOCATING IT TO MAYBE THERE'S AN OPENING AT A DIFFERENT HIGH SCHOOL OR MAYBE THERE'S AN OPENING AT A MIDDLE SCHOOL.

SO I DON'T HAVE TO HIRE A BRAND NEW BAND DIRECTOR.

I'M USING AN EXISTING PERSON AND WE'VE STILL GOT A REASONABLE CLASS SIZE WITH DIRECTOR TO STUDENT MUSICIAN RATIO.

AND WE CAN REPURPOSE THAT POSITION UNTIL SUCH TIME AS THE BAND GROWS LARGER AND THEY NEED MORE PERSONNEL. I GUESS WHAT I WAS THINKING, LIKE WITHIN THE CONTEXT OF THE QUESTION THAT YOU I MEAN, THE ANSWER THAT YOU JUST GAVE.

SO IF YOU HAVE SEVEN BANDS AND YOU HAVE A REDUCTION IN ALL THE BANDS AND THEN YOU NEED ONLY TWO VERSUS THREE BAND DIRECTORS WHERE WOULD THE EXTRA BAND DIRECTORS GO, IF THAT WAS THE CASE ACROSS THE BOARD? SO THAT WOULD BE THROUGH THE ATTRITION PROCESS.

SO WE WOULD NOT BE SAYING, YOU KNOW, BAND DIRECTOR Y YOUR SURPLUS AND YOU DON'T HAVE A JOB. SO BAND DIRECTORS IN THIS CASE ARE CERTIFIED MUSIC ALL LEVEL.

SO THEY MIGHT BE REASSIGNED TO AN ELEMENTARY SCHOOL.

IF I REALLY DID HAVE I DON'T HAVE SEVEN SURPLUS, BUT IF I DID HAVE SEVEN, IF I HAD ELEMENTARY MUSIC TEACHER OPENINGS, THEY MIGHT HAVE TO GO DOWN THERE.

[00:20:03]

SO WE LOOK AT WHAT ARE THEY CERTIFIED IN, WHERE DO WE HAVE OPENINGS AND DO WE NEED TO REALLOCATE POSITIONS TO FIND THOSE BUDGET SAVES.

RIGHT? I WANT TO GO BACK TO WHAT YOU'RE SAYING, DR.

RINGO, ABOUT IN TERMS OF CHANGES WITHOUT IMPACTING THE PROGRAM.

SO TO THE ANSWER THAT DR.

RUSSELL GAVE, YOU KNOW, THERE WOULD BE AN IMPACT, RIGHT.

ON STAFFING RATIOS.

FOR EXAMPLE, IF LIKE SHE NOTED IF ONE OF OUR BANDS HAS 70 KIDS AND THEY HAD FIVE BAND PERSONNEL AND ANOTHER CAMPUS HAS 300 KIDS WITH FIVE BASED OFF THE TASB ANALYSIS EVERYTHING SHOULD BE STAFFED ON RATIOS.

AND SO INSTEAD OF HAVING AMONG 70 KIDS, FIVE PEOPLE HAVING 12 PER PER PERSON ON THAT CAMPUS, THEY WILL REALLOCATE ONE OF THOSE TO THE ONES THAT HAVE 300 PLUS.

AND SO THERE'S MORE EQUITY IN THAT DISTRIBUTION OF ANALYSIS.

I GUESS WHAT I'M GETTING AT, I DON'T WANT TO BEAT A DEAD HORSE, BUT I'M JUST TRYING TO UNDERSTAND WHAT WE MEAN BY WITHOUT IMPACTING THE PROGRAM.

STUDENTS THAT IN AND OF ITSELF IS GOING TO BE AN IMPACT.

RIGHT. BUT THAT DOESN'T NECESSARILY MEAN THE QUALITY OF WHAT THEY'RE ABLE TO PRODUCE SHOULD BE IMPACTED. RIGHT. RIGHT.

SO I GUESS THE SAME IS TRUE FOR OTHER PROGRAMS THAT WE HAVE.

I MEAN, IF WE HAVE FEWER STUDENTS OR THERE'S BEEN A CHANGE BECAUSE OF NON PAYROLL REDUCTIONS, DOES THAT IMPACT THE PROGRAM ITSELF BECAUSE WE HAVE CHANGES IN STAFFING.

AND I THINK WE'RE TALKING ABOUT TWO DIFFERENT THINGS.

OK. SO THE FIRST THING WHEN WE SAY NOT IMPACTING PROGRAMS, WHAT WE'RE TALKING ABOUT IS WE'RE NOT LOOKING TO GO IN AND SAY WE'RE JUST GOING TO UNIVERSALLY NOT OFFER EVERYTHING WE'VE OFFERED. OK, SO THEN WE'RE GOING TO HAVE TO MAKE PROGRAM DECISIONS ON WHICH PROGRAMS WE'RE NOT GOING TO OFFER ANYMORE.

OK, SO THAT WOULD BE IMPACTING PROGRAMS THROUGH STAFFING.

ALL RIGHT. NOW, ON THE OTHER END, WHAT WE'RE DOING IS RIGHT SIZING TO THE PROGRAM NEED.

SO YOU DON'T WANT TO HAVE LET'S JUST SAY AND I DON'T LIKE TO USE FINE ARTS, BUT LET'S JUST SAY WE HAVE AN ELECTIVE THAT ISN'T CATCHING KIDS' ATTENTION.

AND IN YEARS PAST, IT WAS LIKE THE GREATEST ELECTIVE EVER.

BUT NOW WE HAVE THREE TEACHERS THERE AND WE COULD DO IT ALL WITH ONE TEACHER.

RIGHT. THAT'S RIGHT SIZING THE PROGRAM.

YOU KNOW THEN WE THROUGH ATTRITION, AS PEOPLE LEAVE, WE MAKE OUR ADJUSTMENTS AND WE DON'T HAVE TO NECESSARILY CUT A PROGRAM OR SCALE BACK ON IT TO SAVE MONEY.

IT'S JUST WE'RE MAKING IT RIGHT SIZED ACCORDING TO THE NEED.

IF THE NEED GROWS, THEN IT GROWS WITH IT.

I'LL USE A PERFECT EXAMPLE.

WE JUST WROTE A LETTER TO TEA ASKING US TO SUSPEND A P-TECH AT GARLAND HIGH SCHOOL.

GARLAND HIGH SCHOOL ONLY GOT A HANDFUL OF STUDENTS WANTING TO ATTEND THE P-TECH.

THE P-TECH THAT THEY WERE TAKING.

THEY COULD STILL GET A SIMILAR ASSOCIATES WITH THE SAME EARLY COLLEGE THAT'S AT GARLAND.

SO WE'RE MOVING ALL THOSE KIDS INTO EARLY COLLEGE.

WE HAVE ENOUGH SPACE IN THE EARLY COLLEGE.

IT WILL GIVE THEM A VERY ROBUST PROGRAM OF ABOUT ONE HUNDRED AND SOME ODD STUDENTS OR CLOSE TO ONE HUNDRED STUDENTS.

BUT THAT PROGRAM ISN'T GOING TO ADVANCE.

SO THE MONEY THAT WE'RE GOING INTO THAT PROGRAM, WE'RE NOT MOVING FORWARD WITH.

THOSE ARE TWO SEPARATE ISSUES.

SO WHENEVER WE TALK ABOUT PROGRAM, THE PROGRAM EVALUATION FOR FUNDING, THAT'S DIFFERENT, WE'RE SAYING WE'RE GOING TO FUND YOU AT A 12 PERCENT DECREASE FROM YEARS PAST AND WE'RE GOING TO STAFF YOU ACCORDING TO THE NEED OF WHAT WE HAVE.

WHAT WE HAVE DONE IN PRACTICE, WHICH IS VERY COSTLY AND WE'VE HEARD ABOUT IT, IS WE'VE MADE EVERYBODY WHAT I CALL EQUAL.

SO IN ELEMENTARY SCHOOLS, RIGHT.

IN ELEMENTARY SCHOOLS, IF YOU HAVE AN ELEMENTARY SCHOOL OF FOUR HUNDRED, THEY ARE STAFFED AT THE SAME RATE AS AN ELEMENTARY SCHOOL OF SEVEN HUNDRED AND FIFTY.

OK, WELL, I MEAN, THERE'S A LOT MORE TRAFFIC, A LOT MORE PARENTS, A LOT MORE CALLS.

THE 750 NEEDS MORE HELP THAN THE FOUR HUNDRED, BUT WE WANTED IT TO BE EQUAL.

SO IN THIS STUDY, WE'RE EVEN BALANCING SOME OF THAT OR WE'RE SIZING DOWN ON THE SMALLER SCHOOLS AND THEY JUST HAVE TO BE MULTIFUNCTIONAL.

OKAY. I MEAN, YOU HAVE TO DO TWO OR THREE THINGS.

YOU DON'T HAVE AS MANY KIDS AND THEN THE OTHER ONES THAT NEED HELP, WE SHIFTED OVER.

SO SOMETIMES IT'S NOT EVEN A SAVE BECAUSE YOU'VE GOT SCHOOLS GROWING AND OTHER SCHOOLS SHRINKING. BUT IN OTHER PARTS, THERE WILL BE SAVES AND WE ARE COMMITTED TO DOING IT IN A VERY SAFE AND EQUITABLE PROCESS.

SO THE MONEY THAT YOU THINK THAT WE'RE SAVING, WE PUT 14 MILLION DOLLARS THROUGH THIS

[00:25:02]

THAT'S OUR GOAL. BUT IF WE DON'T MEET IT WE WILL TAKE TWO YEARS TO GET IT OK, BUT WE FEEL WE CAN COME CLOSE TO IT IN YEAR ONE, YOU KNOW, WE'RE NOT GOING TO GET PEOPLE OUT OF THEIR CHAIRS OR TERMINATE ANYBODY AT THIS POINT.

THAT'S NOT WHAT THIS IS ABOUT.

THANK YOU. THANK YOU.

AND MR. GLICK HAS THANK YOU, SIR. AROUND LINE 14, SOMEWHERE IN THAT RANGE, YOU HAVE TWO SEPARATE ITEMS, DYSLEXIA DEPARTMENT AND SPECIAL ED DEPARTMENT RELATED.

COULD YOU EXPLAIN THE DIFFERENCES? ARE THEY STILL PART OF ONE DEPARTMENT? WE'RE BREAKING OUT DYSLEXIA.

JUST IF YOU COULD EXPLAIN THAT.

YES, SIR. YOU'RE EXACTLY RIGHT.

DYSLEXIA IS A PART OF SPECIAL ED.

BUT WE DID BREAK THAT OUT TO SHOW THE IMPACT OF DYSLEXIA BECAUSE IT IS A FUNDING RELATED ITEM. THOSE ARE THE DEPARTMENT LEVEL EXPENSES AND THE DEPARTMENT LEVEL POSITIONS LISTED THERE. SO THESE WOULD BE WITH THE SEVEN MILLION DOLLARS, SOME APPROXIMATELY FOR DEPARTMENT PAYROLL.

THOSE WOULD BE PEOPLE WHO ARE NOT ASSIGNED TO CAMPUSES OR ASSIGNED TO CAMPUSES, BUT COME FROM HERE. I'M JUST TRYING TO UNDERSTAND THE DIFFERENCE.

SO FOR DYSLEXIA, THE POSITIONS THAT ARE LISTED THERE, THOSE ARE POSITIONS THAT DO SEE CAMPUSES THAT THEY ARE ASSIGNED TO A CENTRAL OFFICE, BUT THEY DO TRAVEL TO CAMPUSES AND VISIT THE CAMPUSES WITH REGARD TO THE SPECIAL EDUCATION DEPARTMENT RELATED.

THOSE ARE THE DEPARTMENT CODED POSITIONS.

THEY WOULD NOT BE YOUR SPECIAL EDUCATION TEACHERS.

THEY WOULD BE YOUR DIAGNOSTICIANS AND THINGS OF THAT NATURE.

SO MAKING AN ASSUMPTION THAT WE DON'T HAVE DYSLEXIA / SPECIAL ED TEACHERS AT A CAMPUS, WOULD THAT BE A CORRECT ASSUMPTION? THEY ARE NOT CODED AT A CAMPUS.

THEY TRAVEL TO DIFFERENT CAMPUSES.

THEY ARE REPRESENTED AT A CAMPUS, BUT THEY ARE IN THE CENTRAL DEPARTMENT.

YES, SIR. THANK YOU.

ANYBODY ELSE? AND THAT LEADS INTO AS WE TALK ABOUT PROGRAM FUNDING ANALYSIS, JUST TO HIGHLIGHT AND WE HIGHLIGHT OVER AND OVER AS MUCH AS WE CAN THROUGH THE YEARS, OUR TAX VALUE GROWTH IF YOU OWN PROPERTY HAS GONE UP YEAR AFTER YEAR AFTER YEAR.

IN THAT THE STATE FUNDING FORMULA IS SET UP TO BENEFIT THE STATE.

SO AS OUR VALUES INCREASE, THE STATE CUTS DOLLAR FOR DOLLAR WHAT WE RECEIVE.

YOU'RE GOING TO SEE THAT ON A PIE CHART WHEN WE SHOW REVENUE COMPARISONS FOR 2021 AND NEXT FISCAL YEAR. AS THAT SHIFT CONTINUES TO OCCUR, AS WE PAY MORE IN TAXES, THE STATE CUTS US IN THAT SAME DOLLAR AMOUNT.

AND SO THE ONLY WAY TO GENERATE NEW MONEY IS WITH INCREASED AVERAGE DAILY ATTENDANCE OR THE TAX RATES.

THIS IS A COMPARISON FOR THE 2020 TAX RATES FOR ALL DALLAS COUNTY APPRAISAL SCHOOL DISTRICTS. WHAT YOU CAN SEE HERE, THE DISTRICTS HIGHLIGHTED IN GOLD HAVE DONE A TRE.

AND WITH THAT TRE, THAT ALLOWS THEM TO GENERATE MORE MONEY PER STUDENT IN COMPARISON TO OUR STUDENTS. AND SO ONE IS ABLE TO SEE THAT WE DO HAVE THE THIRD LOWEST TAX RATE IN DALLAS COUNTY COMBINED.

AND WE ALSO GENERATE OUT OF THE 16 SCHOOL DISTRICTS IN DALLAS COUNTY, WE GENERATE WE'RE RANKED 14TH OUT OF 16TH IN OUR GENERAL FUND REVENUE PER STUDENT.

AND SO, AGAIN, THE STATE FUNDING FORMULA IS SET UP IN THE ASPECT OF DISTRICTS THAT HAVE HAD VOTERS APPROVE A HIGHER TAX RATE, DO GENERATE MORE MONEY PER STUDENT.

WE WILL TALK ABOUT THAT IMPACT OF WHAT THAT WOULD LOOK LIKE IN GARLAND ISD HERE A LITTLE BIT LATER IN THE PRESENTATION.

BUT YOU CAN SEE HOW THAT COMPARISON GOES FOR ALL SCHOOL DISTRICTS.

AND THESE NUMBERS ARE THE AUDITED NUMBERS FROM THE 19-20 FISCAL YEAR THAT'S ON TEA'S WEBSITE. SO THE KEY TAKEAWAY, THE STATE FUNDING SYSTEM IN TEXAS IS STRUCTURED TO PROVIDE GISD WITH A BASIC AMOUNT OF FUNDING THAT DOES NOT SUPPORT ALL THE ENHANCED PROGRAMS THAT THE DISTRICT OFFERS. AND THAT IS THE FUNDING FORMULA, NOT JUST FOR GISD, BUT ALL SCHOOL DISTRICTS IN TEXAS. AND SO IT DOES GENERATE EACH SCHOOL DISTRICT A MINIMAL AMOUNT OF FUNDING. BUT IF MORE IS WANTED, THE STATE DOESN'T GIVE IT TO THE SCHOOL DISTRICTS.

THE STATE REQUIRES THAT DISTRICT TO GO TAX AT A HIGHER RATE TO GENERATE MORE DOLLARS BECAUSE THE STATE DOES KICK IN FUNDING FOR THOSE ADDITIONAL M&O TAX RATE PENNIES.

AS YOU CAN SEE HERE, OTHER DISTRICTS ARE GENERATING MORE REVENUE PER STUDENT IN TEXAS, 80 TO 90 PERCENT OF THE DISTRICT'S BUDGET IS PAYROLL.

AND SO THAT IS KEY WHEN WE TALK ABOUT TAX RATES AND HOW MUCH REVENUE IS GENERATED PER

[00:30:01]

JUST TO HIGHLIGHT AND AS YOU CAN SEE, THE VISUALS HERE TO SAY OVER AND OVER, AS WE PAY MORE IN PROPERTY TAXES, THE STATE FUNDING FOR GARLAND ISD DECREASES.

THAT IS COMMON. WE'VE SEEN THAT WITH OUR FEDERAL RELIEF DOLLARS HISTORICALLY THAT WE'VE RECEIVED. AND I'M GOING TO USE CARES WHEN WE RECEIVE OUR CARES FUNDING LAST JUNE OF 12.5 MILLION, THE STATE SAID WE'RE GOING TO CUT YOUR STATE FUNDING BY 12.5 MILLION.

SO THERE HAS NOT BEEN ANY NEW DOLLARS FOR GISD TO OPERATE WITH.

AND THAT IS HOW SCHOOL FUNDING HAS WORKED HISTORICALLY AND CURRENT IN THE STATE OF TEXAS.

THE SYSTEM UNDER HOUSE BILL THREE IS SET UP TO CONTINUE THIS MODEL AND WITH NEW GUIDANCE, WITH THE LEGISLATIVE INTENT THERE ARE DISTRICTS IN DALLAS COUNTY WHOSE PROPERTY VALUES HAVE DECLINED AS A WHOLE AND WITH THAT DECLINING PROPERTY VALUE GROWTH IN THEIR SCHOOL DISTRICT, IT DOES REQUIRE THAT DISTRICT TO RAISE THEIR M&O TAX RATE AND NOT NECESSARILY GET ADDITIONAL WHAT WE'VE CALLED GOLDEN AND COPPER PENNIES, BUT TO MAINTAIN THE SAME LEVEL OF FUNDING BECAUSE THE STATE IS RELYING ON CUTTING THEIR PORTION OF THE BUDGET REGARDLESS OF HAVING TAX VALUE GROWTH OR IT DECLINES.

KEY DRIVERS ON FUNDING.

AS WE LOOK AT OUR M&O BUDGETS, IT'S ALWAYS AVERAGE DAILY ATTENDANCE OR THE M&O TAX RATE AND THE TIME LINE FOR OUR BUDGET TAX RATE ADOPTION AND OR VOTER APPROVAL TAX RATE ELECTION. YOU CAN SEE WE HAVE RECEIVED IN APRIL OUR TAXABLE VALUE PRELIMINARY LETTER TO SHOW OUR VALUE GROWTH.

IT'S THE LOWEST IT'S BEEN IN AT LEAST SEVEN PLUS YEARS, I WENT BACK SEVEN YEARS LOOKING AT THAT GROWTH. BUT MARKET VALUE ONLY WENT UP ROUGHLY A LITTLE AROUND FOUR AND 1/2 PERCENT. TAXABLE VALUES RIGHT AROUND FOUR PERCENT.

AND THERE'S ALWAYS A DECLINE FROM THE INITIAL LETTER IN APRIL TO THE CERTIFIED ESTIMATES.

SO IT WILL BE THE SMALLEST TAV GROWTH WE HAVE SEEN IN MANY YEARS IN OUR DISTRICT.

I WON'T READ THROUGH EACH OF THESE DATES, BUT YOU CAN SEE WHAT THEY ARE ON HERE.

THE KEY DATES TO REMEMBER, THOUGH, WE DO ADOPT OUR BUDGET IN JUNE BECAUSE WE ARE JULY ONE FISCAL YEAR, THAT IS ON JUNE 22ND.

WE DO ADOPT OUR TAX RATE IN AUGUST AND OUR M&O TAX RATE, NOT JUST HERE, IS NOW UNDER HOUSE BILL THREE, PRETTY MUCH SET BY THE STATE OF TEXAS.

SO WHEN THEY RECEIVE OUR CERTIFIED VALUES AT THE END OF JULY, THEY COME BACK AND TELL EVERY SCHOOL DISTRICT WHAT THEIR TAX RATE WILL BE.

AND THAT IS STILL ADOPTED BY THE BOARD OF TRUSTEES IN AUGUST.

BUT THE M&O TAX RATE IS NOW PRETTY MUCH CONTROLLED WITH THE COMPRESSION OR DECOMPRESSION AT THE STATE LEVEL. SO IT WORKS IN THE FUNDING FORMULA FOR THE STATE BUDGETS.

GENERAL FUND ASSUMPTIONS, AND WITH THAT I'M GOING TO TURN IT OVER TO MS. MAYO. THANK YOU, DR.

RINGO, PRESIDENT SELDERS, FINANCE CHAIR GRIFFIN, BOARD OF TRUSTEES, DR.

LOPEZ. WE'RE GOING TO PRESENT TO YOU THE 21 22 GENERAL FUND BUDGET PREDICTIONS.

SO THESE ARE ASSUMPTIONS, THESE ARE THE SAME ASSUMPTIONS THAT WE PRESENTED AT THE LAST BUDGET WORKSHOP IT'S WHAT WE EXPECT TO BE FULLY OPERATIONAL IN FY TWENTY TWO.

WE HAVE A TAV GROWTH AT THREE PERCENT.

NINETY EIGHT PERCENT COLLECTION RATE AND AVERAGE DAILY ATTENDANCE DOES INCLUDE OUR INTERSESSION ADA.

AS WE HAVE MENTIONED BEFORE, BASED ON INFORMATION FROM OUR DEMOGRAPHER AND OTHER ANALYSIS, WE ARE EXPECTING AND WILL BE PRESENTING A SCENARIO TWO A REDUCTION OF ONE THOUSAND STUDENTS IN ADA.

SINCE WE LAST SPOKE, WE WERE ABLE TO UPDATE OUR AVERAGE DAILY ATTENDANCE CHART BASED ON THE NEW INFORMATION THAT WE'VE RECEIVED FROM THE STATE FOR ADA HOLD HARMLESS THAT WE DO EXPECT TO RECEIVE THROUGH THE END OF THE YEAR.

YOU CAN SEE THE CHART HERE.

THE GREEN LINE SHOWS OUR 2021 ACTUALS.

THESE ARE OUR ACTUAL ADA UNEXPECTED FIGURE.

SO WE HAVE FORECASTED THE SIX SIXTH WEEKS THERE AND THAT'S WHAT WE EXPECT TO SEE.

THE BLUE LINE INDICATES OUR 2021 HOLD HARMLESS.

AS YOU CAN SEE, IT'S A FLAT LINE.

SO WE ARE STILL WORKING.

WE HAVE PRESENTED THE BUDGET, WE WILL BE PRESENTING THE BUDGET WITH THE WHOLE HARMLESS AS WE MOVE FORWARD. AND WE JUST GIVE A BRIEF DESCRIPTION OF WHAT AVERAGE DAILY ATTENDANCE IS JUST SO THAT YOU CAN HAVE A BETTER UNDERSTANDING OF WHAT ADA MEANS.

AND WHEN WE START TALKING ABOUT ADA VERSUS ENROLLMENT, WE ARE FUNDED ON THE ADA, ITS AVERAGE DAILY ATTENDANCE.

AND YOU CAN JUST SEE THERE REALLY QUICKLY THE TOTAL NUMBER OF DAYS OF STUDENT ATTENDANCE DIVIDED BY THE TOTAL NUMBER OF DAYS IN THE REGULAR SCHOOL YEAR.

OUR AVERAGE ADA IS APPROXIMATELY ABOUT NINETY SIX PERCENT OF OUR ENROLLMENT.

AND THEN HERE'S OUR ENROLLMENT HISTORY.

SO YOU CAN SEE WITH 2020.

WE DO SEE ABOUT A ONE THOUSAND SEVEN HUNDRED AND EIGHTY LOSS DUE TO COVID IN 2020.

THESE ARE SOME ADDITIONAL GENERAL FUND ASSUMPTIONS.

SOME OF THE UNKNOWNS ARE POSSIBLE CHANGES.

AS YOU ALL KNOW, WE'RE IN A LEGISLATIVE YEAR, SO THEY ARE LOOKING AT SOME CHANGES.

[00:35:04]

RINGO HAS MENTIONED. AND ONE ITEM THERE THAT COULD AFFECT US IS THE CCMR CHANGES.

SO WE ARE WATCHING THAT CLOSELY TO SEE HOW THAT WILL AFFECT US.

AND WE ARE STILL RECEIVING UPDATED GUIDANCE FROM TEA ON THE COVID IMPACT.

AND FLEET REPLACEMENT WE JUST WANT TO REMIND YOU, AS WE'RE GOING TO COME TO YOU LATER TODAY IN THE BUDGET AMENDMENT, WE'RE GOING TO TALK ABOUT THE FLEET REPLACEMENT FOR THIS FISCAL YEAR. BUT JUST TO KEEP IN MIND THAT IN OUR FUTURE YEARS, WE ARE NOT REPRESENTING ANY BUS REPLACEMENT.

SO JUST KEEP THAT IN MIND AND THEN JUST TO KNOW, AS WE MOVE THROUGH THIS PROCESS, TO EXPECT SHIFTS EITHER POSITIVE OR NEGATIVE AND WE'LL BE COMING TO YOU WITH ANY AND ALL CHANGES. ONE OTHER THING WE DO WANT TO MENTION AS WE MOVE THROUGH THE PROCESS AND BEGIN TO KIND OF MOVE PAST THE PANDEMIC AND THERE ARE SOME ITEMS THAT COULD POSITIVELY AFFECT OUR BUDGET. SO WE RIGHT NOW WE HAVE IN-HOUSE DISINFECTING DUE TO COVID.

WE HAVE 55 POSITIONS WERE ADDED FOR CUSTODIAL AND WE HAVE COVID RELATED EXPENSES, INCLUDING DISINFECTING ABOUT A MILLION DOLLARS.

SO RIGHT NOW WITH THOSE NUMBERS, IT'S ABOUT TWO POINT SIX MILLION DOLLARS THAT ONCE WE DON'T HAVE TO DO THE LEVEL OF DISINFECTING THAT WE'RE HAVING TO DO NOW, WE COULD LOOK AT REDUCING THOSE ITEMS TO THE BUDGET AND AS WE WOULD DO WITH ANY POSITIONS, THAT WOULD BE THROUGH ATTRITION. THESE ARE GENERAL FUND RECOMMENDATIONS, THERE'S BEEN SOME ITEMS ADDED HERE SINCE WE LAST SPOKE, WE'VE ADDED THE VIRTUAL SCHOOL IMPACT.

WE'RE GOING TO TALK A LITTLE BIT MORE ABOUT VIRTUAL SCHOOL.

I KNOW THAT WAS PRESENTED TO YOU TWO WEEKS AGO.

WE HAVE A TRANSPORTATION ROUTE PLANNING SOME PURCHASING WAREHOUSE CONTRACTS, REGION 10.

YOU CAN SEE THE ITEMS THERE WITH THE BOARD UPDATE OF APRIL TWENTY ONE.

SO YOU CAN SEE THOSE ITEMS FROM PRE-K DOWN.

SO THE CURRENT RECOMMENDATIONS IMPACT IS ABOUT SEVEN POINT THREE MILLION DOLLARS WITH ABOUT SIX POINT FIVE ONGOING.

AND I DO WANT TO POINT OUT IN THE ONE TIME ADD COLUMN AT THE TOP, THERE'S A REDUCTION OF SEVEN HUNDRED AND NINETY ONE THOUSAND DOLLARS.

AND WE ADDED THAT IN THE BUDGET AMENDMENT THIS YEAR FOR A GLOVE NEED AND BASED ON ANALYSIS AND WORKING VERY CLOSELY WITH HEALTH SERVICES, WE ARE ABLE TO COUNT THAT AS A ONE TIME EXPENSE AND REMOVE IT FROM THE BUDGET FOR NEXT YEAR.

SO ONE THING WE TALKED ABOUT A LOT, AND THIS HAS BEEN ON OUR LIST OF UNKNOWN, AND NOW WE HAVE SOME SOME BUDGET NUMBERS TO PUT WITH THIS.

SO AS YOU MAY BE FAMILIAR WITH THE TEACHER INCENTIVE ALLOTMENT, IT WAS PART OF HOUSE BILL THREE. AND IT IS AN OPPORTUNITY WHERE THE STATE CAN REIMBURSE US FOR A PAY FOR PERFORMANCE PLAN FOR OUR TEACHERS.

SO THE DISTRICT HAS DONE A LOT OF GREAT WORK TO GET THIS APPROVED AND A WONDERFUL PLAN SO WE CAN GET STARTED WITH THIS NEXT FISCAL YEAR.

SO WE DID SOME ANALYSIS BASED ON THE TEACHERS, THE CORE LEVEL TEACHERS WORKING CLOSELY WITH H.R. TO DETERMINE WHAT OUR EXPECTED REIMBURSEMENT FROM TEA WOULD BE AND OUR EXPECTED PAYOUT. SO THESE FIGURES ARE INCLUDED IN THE BUDGET NUMBERS THAT WILL BE PRESENTED TO YOU GOING FORWARD. BUT THEY ARE BUDGET NEUTRAL, MEANING THE REVENUES COMING IN AND THE REVENUES GOING OUT.

SO YOU'LL SEE THOSE LINE ITEMS, BUT THEY DO NOT AFFECT THE OVERALL IMPACT OF FUND BALANCE. AS WE'VE BEEN PRESENTING, WE HAVE OUR DISTRICT PAYROLL AND NON PAYROLL ADJUSTMENTS. AND AS DR.

RINGO SPOKE TO EARLIER, WE DO HAVE SOME CURRENT REDUCTIONS, CURRENT PAYROLL REDUCTIONS THAT HAVE BEEN IDENTIFIED AND REMOVED FROM THE BUDGET.

SIX HUNDRED AND FORTY TWO THOUSAND.

AND THEN WE HAVE SOME NON PAYROLL REDUCTIONS THERE.

THE 2.033, THOSE ARE THE FIGURES WE'VE SHARED WITH YOU BEFORE.

AND THEN WE HAVE OUR TIER ONE FISCAL YEAR PLANNING OUR ADDITIONAL PAYROLL CONSIDERATIONS OF FOURTEEN FOUR MILLION IN OUR HISTORICAL VACANCY, PAYROLL SAVES.

I HAD A QUESTION REAL QUICK. YES, SIR.

SO THE PAYROLL REDUCTIONS, AGAIN, THAT'S JUST THROUGH ATTRITION.

IS THAT RIGHT. JUST WANT TO MAKE SURE.

YES, SIR. AND THEN.

YES, SIR. THE TOP PAYROLL REDUCTIONS OF SIX HUNDRED AND FORTY TWO THOUSAND.

YES. WHEN THOSE POSITIONS BECAME VACANT, THOSE POSITIONS WERE ELIMINATED.

AND THEN ALL THE ADDITIONAL PAYROLL CONSIDERATIONS WILL BE DONE THROUGH ATTRITION.

AND AS DR.

RINGO AND DR. LOPEZ SPOKE EARLIER, IT COULD POSSIBLY TAKE ONE TO TWO YEARS, BUT THAT WOULD ALL BE THROUGH ATTRITION.

YES, SIR. GOT IT.

I WANTED TO CIRCLE BACK ON MS. GRIFFIN'S QUESTION FROM EARLIER ABOUT CERTIFICATIONS.

ARE ALL CERTIFICATIONS PAID FOR BY THE DISTRICT.

FOR STUDENTS? FOR STUDENTS YES.

THEY'RE PAID FOR THE DISTRICT.

BUT AS DR. LOPEZ MENTIONED EARLIER, THEY MAY BE PAID FOR BY VARIOUS FUNDING SOURCES AND

[00:40:04]

IS THAT LIKE IS THERE A CERTAIN REQUIREMENT THAT'S NECESSARY IN ORDER FOR THAT TO BE THE CASE? YES.

AND SO ANYTHING TO BE PAID OUT OF A GRANT FUND WOULD HAVE TO BE IDENTIFIED IN THAT GRANT AND PART OF THE PLAN IN ORDER TO BE AWARDED THE GRANT.

SO THERE ARE VERY SPECIFIC GUIDELINES THERE.

THANK YOU. SO THESE ARE GENERAL.

MR. GLICK. THANK YOU, SIR.

COULD YOU GO BACK TO PAGE 20? JUST ONE PAGE BACK. YES, SIR.

I'M TRYING TO RECONCILE THE SEVEN MILLION PLUS NUMBER BASED ON PAYROLL OF 450 MILLION, IS THAT A FAIR ASSUMPTION ABOUT.

YES. SO LESS THAN TWO PERCENT OF PAYROLL TO GO TO TEACHER TIA? IS THAT BECAUSE IT'S EARLY IN THE PROGRAM? IS THAT WHAT WE'RE EXPECTING IN FUTURE YEARS? I KNOW WE'RE ADDING ANOTHER TRANCHE TO GO TO D.

FROM C.. BUT THIS IS FOR C.

YES. AND IS THIS WHAT WE EXPECT IT TO BE AT THE HIGHEST LEVELS IS THIS THE EARLY PART OF IT? I'M JUST TRYING TO. SO BASED ON MY KNOWLEDGE OF WORKING THROUGH THIS IN OUR COHORT C, THESE ARE FOR OUR CORE CONTENT ONLY TEACHERS.

AND WITH COHORT D, IT IS A MUCH GREATER LIST OF TEACHERS THAT WOULD BE COUNTED FOR THERE.

I GUESS FOR SOME REASON I WAS THINKING IT WOULD BE HIGHER AND I'M NOT SURE WHY.

AND THIS IS BASED ON THE PAYMENTS THAT WE GET AN INDIVIDUAL PAYMENT BY SCHOOL BASED ON THEIR ECO THEIR STATE COMP ED BREAK OUT ESSENTIALLY.

AND THAT COMES FROM THE STATE AND BASED ON THE PERCENTAGE OF TEACHERS THAT ACTUALLY QUALIFY. AND SO FOR THIS FISCAL YEAR, BASED ON TRAINING AND GUIDANCE FROM THE STATE, WE HAVE APPLIED BASED ON TRAINING AND GUIDANCE FROM THE STATE AND OUR DISTRICT OPERATIONS WE HAVE APPLIED SOME ASSUMPTIONS THERE.

SO WE WILL KNOW THE ACTUAL NUMBER WHEN WE GET THE REPORT BACK FROM THE STATE.

WOULD YOU THINK AS THE YEARS GO ON AND MORE COHORT C TEACHERS GET CERTIFIED UNDER THIS PROGRAM, THE DOLLARS WILL GO UP SUBSTANTIALLY.

I WOULD EXPECT THE DOLLARS TO GO UP NEXT YEAR.

YES, SIR, BECAUSE OUR LIST IS GOING TO BE BIGGER BECAUSE WE WILL BE INCLUDING MORE TEACHERS IN THAT.

I'M TRYING TO REMEMBER THE NUMBERS THAT I SAW FOR DISD UNDER THEIR TARGETED PROGRAM BEFORE IT WAS ACTUALLY TIA THEIR TEST PROGRAM AND I THINK THEIR NUMBERS WERE IN THE SEVEN OR EIGHT PERCENT NUMBERS OF PAYROLL.

SO IS THAT POSSIBLE WHERE WE'LL GET TO EVENTUALLY? IS THAT WHAT YOUR THOUGHTS MIGHT BE? IT'S POSSIBLE, YEAH.

IT'S HARD FOR ME TO MAKE THAT ASSUMPTION WITHOUT SEEING THE LIST OF ALL THE QUALIFIED TEACHERS. BUT YES, BECAUSE WE ARE GOING TO BE INCLUDING A MUCH BROADER PER.

YES. THANK YOU.

THANK YOU, SIR.

ANYONE ELSE.

THANK YOU? SO CIRCLE BACK TO OUR GENERAL FUND SCENARIOS, I WOULD LIKE TO POINT OUT THAT WE WERE TALKING ABOUT TEACHER INCENTIVE ALLOTMENT.

SO UP IN THE REVENUE SUMMARY, YOU CAN SEE THAT WE HAVE ADDED THE REVENUE THERE.

WE'VE ALSO ADDED THE EXPENSE AND IT SHOWS THAT OFFSET THERE.

AND RIGHT IN THIS SCENARIO, WE ARE FOCUSING ON A LOSS OF ONE THOUSAND ADA.

AND YOU CAN SEE THAT THE COMMITTED PAYROLL REDUCTIONS THAT WE SPOKE OF A COUPLE OF SLIDES UP, THE POSITIONS THAT WE KNOW ARE VACANT, THE POSITIONS WE HAVE REMOVED FROM THE BUDGET ARE LISTED THERE AND THE NON PAYROLL REDUCTIONS.

AND YOU COULD SEE A NET CHANGE IN FUND BALANCE OF NEGATIVE TWENTY SEVEN POINT FIVE MILLION DOLLARS. SO JUST TO REMIND YOU THAT THE ANTICIPATED PAYROLL CONSIDERATIONS ARE NOT THERE AND THE HISTORICAL SAVINGS FROM VACANCY ARE NOT INCLUDED HERE.

SO WITHOUT YOU KNOW, IF FOR SOME REASON THOSE SAVINGS WERE NOT TO OCCUR, WE WOULD SEE A NEGATIVE TWENTY SEVEN POINT FIVE.

BUT AS HISTORICALLY SPEAKING, WE DO KNOW THAT WE SEE SAVINGS DUE TO VACANCIES THERE.

SO WE ARE IN OUR PREVIOUS SLIDE, WE WERE SHOWING ABOUT SIX MILLION DOLLARS.

HERE'S OUR VIRTUAL SCHOOL IMPACTS AND VIRTUAL SCHOOL WAS PRESENTED IN THE LAST DISTRICT AFFAIRS MEETING.

SO THIS IS TO SHOW YOU A SIDE BY SIDE COMPARISON.

IF WE WERE TO LIMIT THE CAP OF LOSS OF REVENUE AT FIVE MILLION DOLLARS.

SO THERE IS A BOX OVER ON THE LEFT THAT SHOWS YOU THE ESTIMATED ADA FOR GRADES THREE THROUGH 12. THAT COULD BE CONSIDERED FOR A VIRTUAL SCHOOL WITH A CAP OF LOSS OF FIVE

[00:45:05]

IN THESE SCENARIOS, YOU WILL SEE THAT THE DISTRICT STAFFING REDUCTIONS ARE CONSIDERED TO GIVE YOU A CLEAR PICTURE OF WHAT THAT WOULD LOOK LIKE IF WE'RE ABLE TO RECEIVE ALL THOSE SAVINGS THROUGH ATTRITION.

THIS IS OUR REVENUE BREAKDOWN.

THIS IS A SLIDE THAT WE SHOW, AS YOU CAN SEE, HOW OUR FEDERAL, STATE AND LOCAL REVENUE BREAKS DOWN IN THE PIE CHART AND HOW IT MOVES FROM ONE YEAR TO THE NEXT.

YOU CAN SEE THAT IT OFFSETS, WHICH IS SOMETHING DR.

RINGO MENTIONED EARLIER.

THIS IS OUR PAYROLL VERSUS NON PAYROLL AS IT STANDS RIGHT NOW TWENTY ONE TWENTY TWO.

AND THIS IS JUST ANOTHER VISUAL OF HOW THAT LOOKS WHEN WE'RE COMPARING THAT.

SO WE HAVE OUR NON PAYROLL AND THEN OUR PORTION OF UTILITIES.

AND WHEN WE'RE THINKING ABOUT PAYROLL AND CONSIDERING ITEMS, WE HAVE UTILITIES THAT ARE UNTOUCHABLE. THESE ARE GENERAL FUND SCENARIOS WITH OUR ADDED REDUCTIONS.

AGAIN, TO SHOW YOU, WE WENT FROM ABOUT A TWENTY SEVEN MILLION DOLLAR NEGATIVE EFFECT TO FUND BALANCE. WHEN WE ADD THOSE HR PROJECTIONS IN IT PUTS US AT ABOUT 13 MILLION DOLLARS.

THIS DOES NOT INCLUDE THE HISTORICAL VACANCIES.

THESE ARE RAISE SCENARIOS.

THESE ARE THE PERCENTAGES THAT WE PRESENTED LAST.

AND THIS IS THE RAISE IMPACT.

SO THESE ARE THE SAME FIGURES THAT WE SHARED WITH YOU BEFORE AND HOW THE RAISE WILL IMPACT AT EACH PERCENT AND HOW IT CARRIES THROUGH THE NEXT TWO FISCAL YEARS.

THIS IS A ONE TIME PAYMENT SLIDE, TO GIVE YOU AN IDEA OF WHAT THE OVERALL IMPACT FOR FIVE HUNDRED DOLLARS OR ONE THOUSAND WOULD BE.

NOW THIS IS A STAFF RETENTION ONE TIME PAYMENT.

WE TOOK THE AVERAGE NUMBER OF RETURNING STAFF OVER THE LAST THREE YEARS TO COME WITH THESE TO CALCULATE THESE FIGURES.

AND THIS IS A ONE TIME PAYMENT IMPACT.

AND THEN THIS IS A SCENARIOS OF OUR FUTURE YEARS WITH OUR PLANNED ADJUSTMENTS, SO YOU CAN SEE WE HAVE THE 13 NEGATIVE 13 EFFECTIVE FUND BALANCE AND HOW THAT CARRIES THROUGH THE NEXT FISCAL YEARS WITH TIA ADDED AS REVENUE AND EXPENSE.

AND THEN THIS IS OUR TWENTY ONE TWENTY TWO RAISE RECOMMENDATION.

THIS SHOWS YOU THE IMPACT OF THE BUDGET WITH A TWO PERCENT RAISE WITH A FIVE HUNDRED / 250 RETENTION BONUS, TWO PERCENT RAISE IS EIGHT POINT THREE DOLLARS MILLION.

RETENTION BONUS IS, THREE POINT ONE FOR A TOTAL OF ELEVEN POINT FIVE MILLION DOLLARS.

SHOWS YOU THE IMPACT OF THE TWENTY ONE TWENTY TWO BUDGET AND THEN HOW THAT FLOWS THROUGH THE NEXT TWO YEARS.

AND JUST WANT TO MAKE ONE ADDITION HERE.

AS YOU LOOK AT FUTURE FISCAL YEARS, IF OUR COVID ADA STARTS TO LEVEL OUT, THAT IS A NET POSITIVE TO THE BUDGET.

SO AS YOU CAN SEE, IN THOSE FUTURE FISCAL YEARS SHOWING AN EIGHT HUNDRED DECLINE AND A FIVE HUNDRED DECLINE.

ANOTHER KEY POINT, AS MS. MAYO NOTED, JUST TO REITERATE THAT 14.5 DOLLARS MILLION THAT IS HIGHLIGHTED IN THE RED BOX, THAT COULD BE POTENTIALLY A TWO YEAR PLAN.

YOU KNOW, HR MAY BE ABLE TO GET MOST OF THAT THIS FISCAL YEAR, BUT AGAIN, IT IS THROUGH ATTRITION. SO IF PEOPLE STAY IN THOSE ROLES, THEY STILL HAVE A JOB.

BUT IF SOMEBODY WERE TO LEAVE AND ONE OF THE AREAS IDENTIFIED, FOR EXAMPLE, WE DISCUSSED THE TWENTY TWO TO TWENTY FOUR TO ONE RATIO THAT IS IN ALL OF OUR SURROUNDING DISTRICTS THROUGH THAT ATTRITION PROCESS.

THAT'S WHERE THOSE BUDGET SAVES WOULD COME IN.

THANK YOU, DR. RINGO. OK, THIS NEXT SLIDE SHOWS YOU AN HISTORICAL LOOK AT OUR FUND BALANCE AND AS IT IS THIS, AS PROJECTED OUT TO TWENTY THREE, TWENTY FOUR IS REFLECTIVE OF THE PREVIOUS SLIDE AND AS DR.

RINGO MENTIONED, WITH A LEVELING OUT OF ADA THAT THESE FIGURES COULD IMPROVE.

ALSO, PLEASE KEEP IN MIND WE NEVER EXPENSE ONE HUNDRED PERCENT OF PAYROLL AND NON PAYROLL. WE DO SEE SAVINGS EACH YEAR HISTORICALLY ON OUR VACANCY PAYROLL SAVES AND THERE IS A PERCENTAGE IN NON PAYROLL.

SO THIS IS A SNAPSHOT OF A PREVIOUS MONTH'S BUDGET AMENDMENT, SO IT'S BASED ON LAST MONTH TO SHOW YOU THAT WE HAVE CURRENTLY ARE PROJECTING A TWENTY SEVEN MILLION DOLLAR IMPACT TO FUND BALANCE IN THIS FISCAL YEAR.

SO WE'VE BEEN SHARING THIS WITH YOU EVERY MONTH IN THE MONTHLY BUDGET AMENDMENT.

AND WE WANT TO SHOW I MAY COME BACK TO THIS SLIDE JUST TO KIND OF BUILD ON THAT POINT.

IF YOU'LL JUST LOOK AT SLIDE THIRTY SEVEN AND THEN I'LL GO BACK TO THIRTY SIX.

[00:50:04]

SO RIGHT NOW WE'RE TALKING ABOUT A TWENTY SEVEN MILLION DOLLAR, BUT WITH OUR 99 PERCENT TAX COLLECTION RATE THAT WE'VE SEEN HISTORICALLY, OUR FOUR PERCENT POTENTIAL PAYROLL SAVES NON PAYROLL SAVES, WE ARE EXPECTING TO BE AROUND FOUR POINT SEVEN DOLLARS MILLION DEFICIT FOR THIS YEAR.

SO WE JUST WANTED TO POINT OUT THAT ONCE WE START TO APPLY THESE THINGS, THAT WE HISTORICALLY SEE WHAT THE TRUE PICTURE WILL LOOK LIKE.

AND SOME OF THAT IS JUST GETTING TO WE'VE TALKED A LOT ABOUT THIS IS JUST CLOSING OUR REVENUE GAPS COMING BEING, YOU KNOW, BEING VERY TRANSPARENT, DOING A LOT OF ANALYSIS SO THAT WE UNDERSTAND OUR INTEREST INCOME REPORTING OUR SHARS SO THAT WE CAN REFLECT THESE FIGURES. DID YOU LOOK, AT THIS POSSIBILITY THAT THE TRANSPORTATION DEFICIT WILL STILL GO DOWN. ALSO SINCE WE'RE STILL NOT USING AS MUCH TRANSPORTATION AS WE HAVE IN THE PAST.

I MEAN, COULD THAT FIGURE IMPACT THAT ALSO.

WE ARE ACCOUNTING FOR THOSE MILES IN THE CURRENT BUDGET PROJECTIONS AND NEXT YEAR WE HAVE BEEN VERY CONSERVATIVE WITH THOSE MILES.

SO IF WE GET BACK TO THREE YEARS AGO, NORMAL ROUTE WE COULD SEE AN INCREASE THERE WE WILL CONTINUE TO MONITOR THAT AND REPORT TO THE BOARD.

OK, IF THERE'S NO MORE QUESTIONS, I'LL PASS IT BACK TO DR.

RINGO.

AND MR. BEACH, TO HIGHLIGHT ON THAT, TRANSPORTATION PAYROLL SAVE WE USED TO GENERATE ABOUT FOUR POINT EIGHT MILLION IN TRANSPORTATION REVENUE AND WHEN COVID HIT, IT DROPPED US TO THE LOW 3S.

AND SO THAT IS WHAT IS BUILT IN OUR BUDGET.

IF WE EVER RETURN TO NORMAL OPERATIONS, THAT WILL BE THE BUDGET ADD IN REVENUE TO HELP US OUT ON THAT DEFICIT IN THE FUTURE FISCAL YEARS, ABOUT FOUR POINT EIGHT MILLION WAS ROUGHLY WHAT WE RECEIVED HISTORICALLY.

PENNIES AVAILABLE. SO THIS IS A RESULT OF HOUSE BILL THREE.

YOU CAN SEE THAT WITH A THREE PERCENT TAV GROWTH, WHICH IS RIGHT IN A LINE WHERE DCAD HAS TOLD US UP TO THIS POINT THROUGH APRIL, MAY, THEY'LL RELEASE ANOTHER PRELIMINARY NUMBER THAT WILL REQUIRE US MAYBE TO ADJUST UP OR DOWN ON TAV GROWTH BECAUSE THEY WILL START RECEIVING PROTESTS IN MAY AND THEN THEY'LL START SETTLING THOSE PROTESTS THROUGH THE SUMMER BEFORE THEY HAVE TO CERTIFY BY THE END OF JULY.

AND YOU CAN SEE I HAVE A DISASTER DECLARATION HERE BECAUSE THAT WAS CURRENTLY AND IS CURRENTLY IN LAW. WE ARE SEEING MOVEMENT IN AUSTIN AND BEING TOLD THAT DISASTER PENNIES WILL NO LONGER BE AVAILABLE. WE HAVE DISCUSSED THOSE IN PRIOR PRESENTATIONS THAT WHEN THERE'S BEEN A NATURAL DISASTER OR DISASTER DECLARATION, THAT FOR TWO YEARS AFTER THAT DECLARATION, DISTRICTS CAN ACCESS WHAT'S CALLED DISASTER PENNIES.

AND SO THAT IS GOING TO GO AWAY.

THAT WILL NOT BE AN OPTION COME AUGUST.

SO THE ONLY OTHER OPTION FOR ADDITIONAL PENNIES ABOVE THE COMPRESSION RATE, AND WE ALREADY HAVE ACCESS TO THAT FIFTH GOLDEN PENNY, SO AT A THREE PERCENT TAV GROWTH, WE'RE COMPRESSED DOWN TO NINE, FOUR, SIX, NINE.

AND ANYTHING ABOVE AND BEYOND THAT DOES REQUIRE THE VOTER APPROVAL TO GO GET THOSE PENNIES. SO RIGHT NOW, WE'RE AT POINT NINE FIVE ONE THREE SO A THREE PERCENT TAV GROWTH.

WE GO FROM POINT NINE FIVE ONE THREE POINT TO POINT NINE FOUR SIX NINE.

AND THERE ARE THREE GOLDEN PENNIES AND NINE COPPER, AGAIN, THESE ARE TERMS WITHIN THE LAW, NOT TERMS JUST UTILIZED BY GISD.

WHEN YOU MAKE THE COMMENT ABOUT THAT, WE HAVE TO GO TO THE VOTERS FOR THOSE OTHER PENNIES. IF SO, AND WE'RE NOT ABLE TO GET THOSE EXTRA PENNIES, WOULD WE STILL BE ABLE TO GET THAT FIFTH PENNY? YES, SIR.

WITH THE BOARD ADOPTING THE TAX RATE IN AUGUST, WE HAVE ACCESS TO THAT FIFTH GOLDEN PENNY WITH BOARD APPROVAL. THANK YOU.

GOOD QUESTION. AND THAT JUST GOES TO THE TAX RATE COMPARISON.

DISTRICTS IN DALLAS COUNTY THAT HAVE PASSED A TRE HISTORICALLY ARE HIGHLIGHTED IN GOLD AND WITH A TRE IN GISD ACCESSING ALL PENNIES, IT WOULD GENERATE ROUGHLY NINE THOUSAND SIX THIRTY TWO PER STUDENT WHEN YOU COMPARE IT TO THE OTHER SCHOOL DISTRICTS.

MR. JOHNSON.

WITH RESPECT TO THE SLIDE, COULD YOU EXPLAIN TO ME HOW ON THE M&O YOU HAVE A LOT OF DISTRICTS THAT ARE FROZEN AT THAT MAXIMUM TAX RATE, THAT 105 AND CHANGE? AND THEN YOU HAVE THE SECTION WHERE YOU TALK ABOUT TAX REVENUE PER STUDENT M&O ONLY WHAT DISTINGUISHES WHY SOME DISTRICTS GET MORE OUT OF THE SAME M&O RATE THAN OTHER DISTRICTS.

VARIOUS WEIGHTED FACTORS, BUT THEN ALSO INEQUITIES IN THE FUNDING FORMULA.

[00:55:01]

BECAUSE WE'RE NOT TALKING ABOUT WATA AT ALL HERE.

WHERE THIS INCLUDES THE WEIGHTS OF THAT.

SO FOR EXAMPLE, DISTRICTS THAT HAVE AND YOU MENTIONED ONE THAT 104 I MEAN, SORRY, ONE POINT ZERO FIVE FOUR SEVEN THAT ARE THERE AT THE HIGHEST THAT COULD BE TAXING RIGHT NOW TO THE COMPRESSION. SO THEY HAVE ACCESS TO ALL THE PENNIES.

SO THAT GENERAL FUND REVENUE PER STUDENT, THAT IS DIRECTLY FROM THE STATE WEBSITE THAT ACCOUNTS FOR ALL THE WEIGHTS, EVERY DOLLAR GOING TO THAT GENERAL FUND.

THAT IS WHAT THEY'RE GETTING.

AND SO DISTRICTS THAT DO HAVE MORE CTE PROGRAMS OR IN THE CENSUS BLOCK HAVE MORE STUDENTS THAT QUALIFY ON CENSUS BLOCK WILL GENERATE MORE MONEY PER STUDENT THAN A DISTRICT THAT DOES NOT HAVE THAT ON AVERAGE.

THAT DOES NOT MEAN IT ALWAYS HAPPENS.

BUT THIS IS WHEN I SAY, GENERAL FUND REVENUE PER STUDENT THAT IS ONLY LOOKING AT THE GENERAL FUND REVENUE, BECAUSE I&S IT DOES NOT MATTER HOW MANY STUDENTS YOU HAVE IN THE DISTRICT THAT IS TRULY TAXABLE VALUE TO PAY OFF YOUR DEBT.

THANKS. KEY TAKEAWAY, I'VE ALREADY STATED THESE, I WON'T RESTATE THEM AGAIN, IT'S JUST THAT THE STATE FUNDING SYSTEM IS STRUCTURED TO PROVIDE A BASIC AMOUNT OF FUNDING THAT DOESN'T NECESSARILY SUPPORT ALL THE PROGRAMS THAT A DISTRICT DOES OFFER IN THOSE SCHOOLS.

AND I WILL USE GIFTED AND TALENTED.

THEY REMOVED FUNDING FOR GIFTED AND TALENTED UNDER HOUSE BILL THREE, BUT THE STATE REQUIRES THAT DISTRICTS STILL PAY FOR THAT AS WE SHOULD.

IT'S JUST UNFORTUNATE THAT IT'S AN UNFUNDED MANDATE IN THE LAW.

SO PROJECTED TRE IMPACT AT THREE PERCENT GROWTH VALUE.

AS MR. BEACH ASKED WITH A BOARD VOTE, WE WOULD BE ABLE TO STAY AT THE COMPRESSED RATE WITH THE FIFTH GOLDEN PENNY AT POINT NINE FOUR SIX NINE.

I'M GOING TO HIGHLIGHT HERE, LET'S JUST SAY WE OUR TAX REVENUE GROWTH IS LESS THAN TWO AND A HALF PERCENT. THE STATE WILL REQUIRE GISD TO RAISE THE M&O TAX RATE.

WE ONLY KEEP THE FIVE GOLDEN PENNIES.

BUT IT'S JUST THE FUNDING FORMULA THAT OUR RATE GOES UP AND THE STATE IS STILL GOING TO CUT THEIR SHARE AS THERE IS TAV GROWTH.

SO THAT IS NEW WITH HOUSE BILL THREE, HOUSE BILL THREE, WE LEARN THAT THERE IS COMPRESSION AS THERE IS TAV VALUE GROWTH.

AND SO THE STATE IN THE PORTION OF THE STATE BUDGET RELIES ON THAT.

SO WHEN THERE'S NOT TAV GROWTH, IT DOES REQUIRE A DISTRICT TO RAISE ITS M&O RATE TO THAT MINIMUM FUNDING LEVEL OF THE FIFTH GOLDEN PENNY TO GENERATE A CERTAIN AMOUNT OF MONEY FOR WHAT THE STATE IS REDUCING IN THEIR SHARE.

SO THERE ARE DISTRICTS IN DALLAS COUNTY THIS NEXT YEAR THAT ARE GOING TO HAVE VALUE DECLINED AND WE'LL HAVE TO RAISE THEIR M&O RATES UNDER THE LAW.

BUT YOU CAN SEE THERE'S SIX, SEVEN AND EIGHT FOR THE LAST THREE GOLDEN PENNIES AND NINE YOU CAN SEE EACH GOLDEN PENNY GENERATES OVER FOUR DOLLARS MILLION FOR THE DISTRICT.

EACH COPPER PENNY GENERATES A LITTLE LESS THAN ONE POINT ONE MILLION.

BUT EVERY PENNY GENERATES THE SAME AMOUNT OF FUNDING FOR THE SCHOOL DISTRICT AND THE LOCAL REVENUE. AND SO WHEN IT'S COMBINED, IT'S ROUGHLY 6.6, 6.7 MILLION FOR THE GOLDEN PENNIES AND 3.35 FOR THE COPPER PENNIES FOR A TOTAL ADDITION OF 50.1 MILLION THAT IS ONGOING UNDER CURRENT LEGISLATION.

THERE'S THE PER PENNEY IMPACT THAT WE JUST HIGHLIGHTED.

THERE'S THE VISUALS SO THAT CAN BE SEEN AND THE TRE IMPACT EXAMPLE THAT OFFICE PURSUED.

YOU CAN SEE WHAT OUR TAX RATES HAVE BEEN GOING BACK TO 18, 19, AND PRIOR TO 18 19 IT WAS A DOLLAR FORTY SIX, NINETEEN TWENTY A DOLLAR THIRTY NINE UNDER THE FIRST YEAR OF HOUSE BILL THREE THEN 2021, WHICH IS CURRENT.

IT WENT DOWN TO A DOLLAR TWENTY FIVE, SIX, THREE.

AND NEXT YEAR WITH A TAX RATE THAT WOULD GO AFTER ALL AVAILABLE PENNIES AT THREE PERCENT TAV GROWTH, IT WOULD ACTUALLY RAISE THE RATE A LITTLE LESS THAN 12 CENTS.

AND THIS IS JUST AN EXAMPLE.

SO ANYBODY LISTENING, THAT DOES NOT MEAN THAT IS HAPPENING.

WE'RE NOT NECESSARILY SAYING WE'RE RAISING OUR RATE 12 CENTS AT THIS TIME.

IT IS AN EXAMPLE OF AN IMPACT WITH A TRE.

THAT PER PENNY IMPACT ON A 2 HUNDRED THOUSAND DOLLAR HOME YOU CAN SEE THERE AT THAT TAXABLE VALUATION, IT DOES COME OUT.

IT'S BASICALLY SEVENTEEN DOLLARS AND FIFTY CENTS PER PENNY INCREASE ON A TWO HUNDRED THOUSAND DOLLAR HOME. AND THEN GENERAL FUND SCENARIO WITH TRE AND H.R.

ADJUSTMENTS AS OF APRIL 16TH.

SO YOU CAN SEE HERE WHAT OUR PROJECTED REVENUES ARE.

AS MS. MAYO NOTED, AND WE'VE SHOWN IN OUR SLIDES ON OUR PROJECTED REVENUES, WE'VE REALLY TIGHTENED THOSE UP AND HAVE BEEN WITHIN LESS THAN ONE PERCENT OF OUR PROJECTED REVENUES IN COMPARED TO PRIOR FISCAL YEARS, BECAUSE WE DO BUDGET OUR SHARS, OUR INTEREST INCOME THAT IS IN THERE FROM THE BEGINNING ON THE BUDGET, THEN YOU CAN GO OUT IN THE FUTURE FISCAL YEARS WITH THAT TRE IMPACT AND WHAT THAT LOOKS LIKE ON THE BUDGET.

[01:00:01]

TAX RATIFICATION ELECTION TIMELINE FOR THIS FISCAL YEAR, IT DOES REQUIRE NOTICE IN THE NEWSPAPER. WE NEED OUR JULY DCAD CERTIFIED VALUE TO SUBMIT TO TEA THEM TO TELL US OUR M&O COMPRESSED TAX RATE.

THEY MUST CONFIRM THIS BEFORE WE'RE ABLE TO PROCEED IN ADOPTING ANY FORM OF A TAX RATE AND THEN BUSINESS COMMUNITY SUPPORT AND COMMUNICATION PLAN.

AND THEN, AS WE KNOW, DISASTER PENNIES UNDER CURRENT LEGISLATION ARE AVAILABLE.

BUT I CAN SAY VERY CONFIDENTLY GOING INTO NEXT TAX YEAR, THAT IS GOING TO BE PROHIBITED IN THE LEGISLATION THAT IS COMING OUT OF AUSTIN.

THE NEXT SLIDE IS THE GENERAL FUND BY FUNCTION, WHEN WE LOOK AT TWENTY ONE, TWENTY TWO AND YOU CAN SEE WHAT OUR PROJECTED REVENUES ARE, THAT DOES INCLUDE THE TIA FLOW THROUGH ON THE REVENUE SIDE AND THE TIA EXPENDITURE ON THE EXPENDITURE SIDE.

AND THIS IS WITHOUT THE RAISES REFLECTED IN THE ONE TIME PAYMENT.

WE CAN GO BACK TO THAT SLIDE TO SHOW WHAT THAT LOOKS LIKE.

THAT WOULD BE ROUGHLY A 26 MILLION DOLLAR DEFICIT ON PAPER.

AS WE NOTE, WE ALWAYS HAVE AT LEAST TWO PERCENT IN PAYROLL ON SAVES.

SO, YOU KNOW, SIX MILLION DOLLARS WE ALWAYS HAVE NON PAYROLL SAVES.

THIS WILL BE THE FIRST YEAR WITH REDUCED NON PAYROLL BUDGET TO GET A BETTER PICTURE OF WHAT THOSE NON PAYROLL SAVES WOULD LOOK LIKE.

WE WITH THE 12 PERCENT REDUCTION ALREADY TAKING PLACE RIGHT NOW, IT'S JUST LOOKING AT IT MONTH TO MONTH TO SEE WHERE WE MAY LAND VERSUS ANY FORM OF TREND LINE HISTORICALLY IN THE DISTRICT. MR. GLICK. THANK YOU, SIR.

SO AS WE LOOK TOWARD THE END OF THIS CALENDAR YEAR, IT SEEMS THERE ARE THREE POTENTIAL SOURCES OF ADDITIONAL REVENUE.

ONE, THE DISASTER DECLARATION THAT WE'RE ALL HEARING THE SAME THING, BUT IT'S NOT OFFICIALLY DEAD YET.

RIGHT. A TRE WHICH COULD RAISE UP TO AND WE'D HAVE TO DO IN NOVEMBER.

YES, SIR. THOSE ARE ONLY ALLOWED IN NOVEMBER NOW.

THAT'S IN ABOUT ABOUT 50 MILLION DOLLARS OR THE POTENTIAL RELEASE OF THE FED DOLLARS, WHICH COULD BE AS MUCH AS ONE HUNDRED AND FIFTY MILLION DOLLARS FOR THIS SPEAKERS]. BUT WE KNOW IT WON'T BE.

WE DON'T KNOW IF I THINK WE BELIEVE WE'RE GOING TO GET SOMETHING OUT OF THAT ON A ONE TIME BASIS. BUT I DON'T THINK WE HAVE ANY IDEA WHAT THAT WOULD BE.

WITH THE PRESENTATION OF ALL THIS INFORMATION ON THE TRE FOR THIS MEETING.

IS THE ADMINISTRATION THINKING THAT THEY WANT TO WAIT UNTIL WE SEE ABOUT DISASTER OR FED AND THEN HAVE A FALLBACK POSITION OF TRE? OR IS IT JUST BEING PRESENTED FOR GENERAL INFORMATION.

EXACTLY WHAT YOU FIRST SAID? YOU KNOW, WHAT WE WANT TO SEE IS WHAT THE FEDS GIVE US.

WE WANT TO KNOW ALL OUR OPTIONS BEFORE WE MAKE A DETERMINATION IF WE'RE ABLE TO GET ADEQUATE, I'M GOING TO USE THE WORD ADEQUATE FEDERAL RELIEF FUNDS THAT SHOULD BE ABLE TO PULL US THROUGH AND ALLOW US TO LOOK AT OTHER EFFORTS, SUCH AS EVEN A BOND.

OK, BUT IF ALL OF THOSE FALLS SHORT, THEN WE'RE GOING TO HAVE TO ASK THE PUBLIC TO REALLY EXAMINE WHAT WE'RE DOING AS A SCHOOL DISTRICT AND HELP US WITH THOSE PENNIES.

THOSE ARE THE THINGS THAT WE'RE GOING TO BE LOOKING AT.

BUT FIRST, WE DON'T WANT TO JUMP THE GUN.

AND THEN IF WE GET ALL THIS FEDERAL RELIEF MONEY, JUST FOR THE RECORD, I KNOW THE PUBLIC'S LISTENING. THE FEDS ALLOCATED ONE HUNDRED AND SIXTY MILLION DOLLARS JUST TO OUR DISTRICT ALONE TO BE USED IN THE COURSE OF TWO YEARS.

THAT'S A SIGNIFICANT AMOUNT OF MONEY TO HELP US WITH LEARNING LOSS, BALANCING OUR BUDGET, DOING ALL THE INNOVATIVE THINGS THAT WE WISH WE COULD DO.

YOU SEE US DOING VIRTUAL SCHOOLS.

WE WOULDN'T HAVE WORRIES FOR THE NEXT TWO YEARS IF WE WERE ALLOCATED THOSE FUNDS.

NOW, I'M NOT SURE IF NEW YORK HAS RELEASED THEIR FUNDS YET, THE STATE OF NEW YORK.

BUT WE'RE ONE OF TWO STATES THAT HAVEN'T RECEIVED THOSE FUNDS YET.

AND SO I KNOW WE HAVE PEOPLE THAT REALLY CARE ABOUT OUR DISTRICT.

AND MY CONTENTION IS THE SOONER OUR REPS PUT PRESSURE ON ADMINISTRATION, WHICH IS THE GOVERNOR'S OFFICE, TO RELEASE THOSE FUNDS, THE MORE WE CAN MAKE THESE DECISIONS.

I MEAN, WE'RE ALREADY GETTING READY FOR AUGUST.

EVERYTHING WE'RE DOING NOW IS FOR AUGUST.

IT'S NOT LIKE YOU CAN JUST GET MONEY AND THEN TURN IT AROUND AND MAKE PLANS.

WE NEED THE MONEY NOW SO WE CAN PLAN FOR THE KIDS STARTING IN JUNE.

AND UNTIL WE GET THOSE, WE DON'T WANT TO JUMP THE GUN OR WE KNOW WHAT'S GOING TO HAPPEN.

BUT IF THEY COULD GIVE US A SMALL AMOUNT INSTEAD OF GIVING US ONE HUNDRED SIXTY MILLION, THEY GIVE US TEN MILLION. THAT'S NOT GOING TO DO ANYTHING FOR US.

SO THOSE ARE WHAT WE'RE LOOKING AT.

AND I THINK IT'S REALLY HELPFUL FOR THE BOARD MEMBERS AND FOR THE PUBLIC FOR WHAT YOU AND

[01:05:04]

THANK YOU, SIR. AND MR. GLICK, I DO BELIEVE WE WILL SEE SOME ADDITIONAL DOLLARS, BUT BECAUSE THEY'VE ALWAYS SUPPLANTED WHAT WE'VE BEEN GIVEN FROM THE FEDS, I HAVE NO IDEA HOW MUCH ADDITIONAL THAT WILL BE. BUT I DO BELIEVE IT'S SO MUCH MONEY, THE STATE CANNOT SUPPLANT ALL OF THAT.

THAT WOULD WRAP UP THE GENERAL FUND DISCUSSION THAT WILL LEAD INTO OUR STUDENT NUTRITION FUND. BRENT CAN I ASK YOU A QUESTION REAL QUICK? YES. ON THE TRE IMPACT EXAMPLE THAT YOU GAVE SHOWING EACH ONE OF THOSE TOTAL THAT YOU SHOWED IN 2018-19? THOSE ARE ALL TRE EXAMPLES IS THAT, CORRECT? THAT WAS THAT NUMBER IN TWENTY NINETEEN.

THAT WAS THE TAX RATE.

SO GARLAND ISD HAS NEVER.

NO SIR. THE HIGHEST THE DISTRICT WOULD TAX OR COULD TAX PRIOR TO TRE AND PRIOR TO HOUSE BILL THREE WAS A DOLLAR FOUR. SO WHAT THE PUBLIC NEEDS TO KNOW IS THAT EVEN THOUGH IF WE DID PASS A TRE FOR TWENTY ONE TWENTY TWO IT WOULD BE A DOLLAR THIRTY SEVEN WHICH IS STILL NINE CENTS CHEAPER THAN WHAT IT WAS IN TWENTY EIGHTEEN NINETEEN.

THAT IS CORRECT. AND GOING BACK TO TWENTY SIXTEEN SEVENTEEN.

IT WOULD STILL BE LOWER THAN WHEN THE DISTRICT PASSED THE BOND PROGRAM IN 2014 15 SCHOOL YEAR THAT TAX RATE WAS RIGHT AT I BELIEVE A DOLLAR THIRTY SIX.

I WOULD NEED TO CONFIRM THAT NUMBER SPECIFICALLY, BUT THEN THE NEXT YEAR IT JUMPED UP TO A DOLLAR FORTY SIX AND IT STAYED AT A DOLLAR FORTY SIX UNTIL TWENTY NINETEEN.

IT STILL IS CHEAPER THAN TWENTY NINETEEN 20 IS STILL MY OPINION, AND SOME CHANGE.

YES SIR. I THINK.

YEAH THAT'S GOOD INFORMATION.

LOOK. THANK YOU, DR. RINGO, SO I WANT TO PRESENT TO YOU THE TWENTY ONE TWENTY TWO STUDENT NUTRITION SERVICES FUND, THESE ARE THE SAME FIGURES THAT WE BROUGHT TO YOU LAST PRESENTATION.

WE ARE EXPECTING NORMAL OPERATIONS.

BUT ONE THING HAS OCCURRED SINCE WE CREATED THIS PRESENTATION IS THAT THE USDA EXTENDED THE FREE MEALS FOR ALL STUDENTS THROUGH JUNE OF 2022.

SO WE'RE VERY EXCITED ABOUT THAT.

IT ALSO COMES AT AN INCREASED REIMBURSEMENT RATE.

SO THAT IS GREAT NEWS.

SO WE'RE REALLY PLEASED WITH THAT.

IT TAKES A LOT OF PRESSURE OFF STUDENT NUTRITION AND THE POSSIBLE IMPACT TO THE GENERAL FUND. SO WE'RE VERY PLEASED WITH THAT.

THE DEBT SERVICE FUND IS PRESENTED HERE THIS IS PRESENTED WITH NO NEW BOND ELECTION AND NO CHANGE. THIS IS THE SAME EXPECTATION THAT WE PRESENTED.

IF WE MOVE FORWARD WITH ANY OTHER SCENARIOS DISCUSSED TODAY, WE WOULD PRESENT A NEW BUDGET HERE. THESE ARE THE NET PRINCIPAL AND INTEREST PAYMENT SCHEDULE FOR FY TWENTY TWO AND THEN THE TOTAL TAX COLLECTIONS ANTICIPATED AT THE VARIOUS RATES AT A 98 PERCENT COLLECTION RATE.

JUST FOR YOUR INFORMATION, WE SHARED THIS WITH YOU LAST PRESENTATION AND THEN THESE ARE SUMMARIES AND NEXT STEPS.

SO CURRENTLY IMPLEMENTED IS FY 22 12 PERCENT REDUCTIONS.

IT'S AN IMPACT OF SEVEN MILLION DOLLARS.

IT IS ROUGHLY ALMOST THE EXACT SAME AS THIS FISCAL YEAR.

BUDGET RESTRICTIONS IMPLEMENTED WILL RESUME AT THIS TIME, NON-PAYROLL RESTRICTIONS AND A REVIEW OF EACH VACANCY SAVINGS WILL BE REALIZED AT YEAR END.

CURRENTLY UNDER REVIEW, AS WE'RE TALKING ABOUT TODAY, ARE FY 22 RAISE SCENARIOS, ADDITIONAL PAYROLL REDUCTIONS, AS WE TALKED ABOUT EARLIER.

AND WE JUST WANT TO REMIND YOU THAT AS WE GO THROUGH THIS LEGISLATIVE SESSION, AS THINGS ARE CHANGING, EVER CHANGING IN OUR ENVIRONMENT, WE DO EXPECT REVENUE SHIFTS.

THEY COULD BE POSITIVE OR NEGATIVE.

WE WILL REPORT THEM TO YOU AS WE ALWAYS DO.

AND THEN MORE AND MORE ANALYSIS IS TO COME.

WE ARE DEFINITELY AND, AS DR.

RINGO SPOKE ABOUT TODAY AND DR.

LOPEZ SPOKE ABOUT AS WELL.

OUR FOCUS IS TO MEET THE FINANCIAL NEEDS OF THE DISTRICT WITH MINIMAL TO NO IMPACT ON OUR PROGRAMS. SO WE TOOK THE OPPORTUNITY HERE TO CHECK SOME THINGS OFF OF OUR LIST.

IT ALWAYS FEELS GOOD TO DO THAT.

SO WE HAVE MARKED THROUGH THE ITEMS THAT WE HAVE DONE HERE.

AND THEN THESE ARE OUR NEXT STEPS, MAY, JUNE, JULY AND AUGUST.

[01:10:01]

COMING EARLY JUNE, WE'LL BE PUBLISHING OUR BUDGET AND PROPOSED TAX RATE IN THE PAPER AND WE'LL BE COMING TO YOU TO REVIEW AND ADOPT OUR BUDGET AT THE END OF JUNE, JULY 1ST, THE BUDGET WILL BECOME AVAILABLE TO ALL CAMPUSES AND DEPARTMENTS AND IN AUGUST WILL RECEIVE OUR DCD CERTIFIED VALUES AND ADJUST THE EXPECTED LOCAL AND STATE REVENUES AT THAT TIME.

AND THEN ALSO IN AUGUST, WE WILL COME TO YOU FOR OUR TAX RATE ADOPTION.

SO QUESTIONS OR FOLLOW UP.

YES SIR. MR. MILLER.

THANK YOU ALL. GREAT PRESENTATION.

AS YOU MENTIONED, A LOT OF THIS WE'VE SEEN WE'VE BEEN LOOKING AT IT FOR A WHILE.

I THINK MR. GLICK IS RIGHT.

THERE ARE A FEW THINGS THAT COULD AFFECT OUR REVENUE.

SOME OF THESE THINGS COULD AFFECT US GOOD OR BAD WITH LIKE THE ADA.

WE COULD BE SURPRISED POSITIVELY OR NEGATIVELY THE VIRTUAL FUNDING.

WE HOPE IT WILL BE FUNDED.

IF IT'S NOT, THEN WE WILL HAVE AN IMPACT.

WE HAVE IN THIS BUDGET LIMITED TO FIVE MILLION DOLLARS.

IF I REMEMBER WHAT THE PLANNING MODULE KICKED OUT.

WE HAVE TAX VALUES, MR. RINGO. LAST YEAR, CERTIFIED TAX ROLLS DIDN'T COME TILL WHEN? WELL, BASED BY LAW, THEY STILL HAD TO CERTIFY THEM.

BUT ROUGHLY, I BELIEVE IT WAS OVER.

FORTY PERCENT OF OUR PROPERTIES WERE STILL UNDER PROTEST.

AND SO WE DIDN'T REALLY GET A FINAL NUMBER TILL NOVEMBER, WHICH WHAT WE WERE SEEING IN NOVEMBER IS WHAT WE TYPICALLY RECEIVE IN AUGUST OF LAST YEAR.

AND REAL QUICK TO ADD TO WHAT HE'S SAYING IS AN EXTENSION FOR THE PUBLIC, PLEASE EXPLAIN TO THEM WHEN WE SAY THAT OUR AVERAGE TAV GROWTH IS THREE PERCENT WHEN PEOPLE ARE LOOKING AT THEIR APPRAISALS SAYING THERE'S NO WAY, THREE PERCENT, THAT'S TOO LOW.

EXPLAIN TO THEM WHY IT AVERAGES THE THREE PERCENT.

THAT'S GREAT. SO IT TAKES IN COMMERCIAL REAL ESTATE AND COMMERCIAL PROPERTIES.

IT TAKES INTO RESIDENTIAL AND THEN EVEN FARM AN AG, WHICH WE HAVE IN GISD BOUNDARY.

AND SO THERE ARE AREAS WHERE DCAD WILL SAY, AND IT'S DCAD WHO DOES THE APPRAISALS.

THE DISTRICT HAS NOTHING TO DO IN THE APPRAISAL PROCESS, BUT THEY WILL SEE AND IDENTIFY WHAT THE HOMES ARE SELLING FOR.

AND THERE MIGHT BE HOMES THAT ARE IN THAT NEIGHBORHOOD, IN THAT POCKET OR SECTOR OF DCAD GOING UP EIGHT PERCENT IN VALUE GROWTH.

BUT WE DO KNOW THERE ARE COMMERCIAL PROPERTIES IN DALLAS COUNTY HAD A RESULT OF COVID THAT ARE RECEIVING DECLINING VALUES AND THROUGH THEIR PROTEST PROCESS.

SO WHEN YOU MERGE ALL THREE OF THOSE CATEGORIES, THE NET IMPACT IS ROUGHLY A THREE PERCENT TAV GROWTH FOR THE DISTRICT.

AND THE HIGHLIGHT WITH THAT, THOUGH, JUST TO REITERATE, ANY TAV GROWTH WE RECEIVE DOES NOT MEAN NEW FUNDING FOR THE SCHOOL DISTRICT.

IT JUST MEANS THE STATE IS GOING TO OFFSET THAT GROWTH.

AND WE STAYED AT THE SAME FUNDING LEVELS.

SO WITH RESPECT TO THAT AND I HAVE A FEW MORE THINGS COMING.

LAST YEAR, I REMEMBER BECAUSE OF COVID, THERE WERE DELAYS IN THOSE TAX VALUES BECAUSE OF COVID. DO YOU SEE THAT HAPPENING AGAIN THIS YEAR? WILL, WE HAVE A RELATIVELY SHORTER PERIOD THERE WHERE WE'RE GUESSING AT OUR TAX RATE.

THE GOOD NEWS WITH THAT AND WITH DCAD THEY ARE OPEN AND OPERATIONAL AND THEY'VE COMMUNICATED TO US. THEY DO NOT FORESEE ANY DELAYS BECAUSE THEY ARE OPEN.

LAST YEAR THEY WERE NOT OPEN AND DELAYED THE PROCESS OVER AN ENTIRE MONTH.

AND SO THEY HAVE STARTED THEIR PROCESS WITHIN THEIR TIMELINES.

AND WE SHOULD BE WITHIN REASON IN JULY WHEN WE SEE THOSE CERTIFIED VALUES OF WHAT THEY'VE BEEN IN PRIOR YEARS.

SO THE MILLION DOLLAR QUESTION ON THAT SUBJECT IS ONCE ALL THE PROTESTS WE'RE IN HOW DID THE TAXABLE VALUE COMPARE TO WHAT WE GUESSTIMATED BACK WHEN WE HAD TO HAVE A BUDGET PASSED IN, I THINK, JUNE? WE ACTUALLY HELPED SET THE PRECEDENT WITH TEA IN DETERMINING THAT FORMULA TO MAKING IT WORK AND WORKING WITH THE APPRAISAL DISTRICTS.

AND WE CAME IN RIGHT ABOUT WHERE WE PROJECTED ON OUR TAV GROWTH AND BASED OFF WORKING WITH DCAD THEY HAD, YOU KNOW, WITH WHAT WAS UNDER PROTEST DCAD SAID WE ESTIMATE 80 PERCENT OF THAT WILL COME BACK TO BE TAXABLE VALUE.

WELL, WE DIDN'T USE 80 PERCENT.

WE USE 70 PERCENT.

AND THAT'S ABOUT WHERE THEY LANDED.

AND SO WE WERE ABLE TO SET OUR I&S RATE AND M&O AT THE APPROPRIATE LEVELS.

OK, GOOD. SO THOSE ARE I MEAN, TAXES, TAX RATES, ADA, CHANGE IN THE FORMULA I MEAN, THERE'S REALLY NO WAYS FOR US TO DO ANYTHING TO RAISE OUR REVENUE BESIDES HAVE MORE KIDS IN THE SEATS.

THE SAVES ON THE PAYROLL.

I THINK WE KNOW WHAT YOU'VE IDENTIFIED, WHAT THEY ARE CURRENTLY.

YOU'VE ALSO SAID THAT THERE MAY BE SOME ADDITIONAL SAVES ON PAYROLL ALL THROUGH, NOT

[01:15:07]

WILL IT AFFECT THE AMOUNT OF SAVES WE WILL HAVE ON PAYROLL IF WE'RE TALKING ABOUT REDUCED PAYROLL TO BEGIN WITH? POTENTIALLY, YOU KNOW, HISTORICALLY BEFORE COVID AND BEFORE THE FISCAL YEAR CHANGED, OUR PAYROLL SAVE HAS ALWAYS RAN A LITTLE MORE THAN TWO PERCENT WITH THE SIZE OF OUR PAYROLL BUDGET, I DON'T FORESEE THAT BEING MATERIALLY DIFFERENT IN FUTURE YEARS.

OK, SO THE FACT THAT WE WILL HAVE SOME PAYROLL REDUCTION WON'T REALLY AFFECT THE SAVE.

SO THAT SIX MILLION DOLLAR NUMBER IS A GOOD OF GUESS AS ANY AT THIS POINT.

YES, SIR. OK, AND THEN WE'RE GOING TO DEAL WITH RAISES ONE TIME PAYMENTS.

IN YOUR PROJECTIONS I THINK YOU SAID WE HAD TRANSPORTATION COSTS DURING THIS COMING BUDGET OF THREE MILLION DOLLARS.

IS THAT THE NUMBER I REMEMBER.

REVENUE TRANSPORTATION REVENUE TO FIVE MILLION IN WHAT WE WERE REIMBURSED FROM THE STATE.

COVID HIT, WE GENERATED ROUGHLY AROUND THREE MILLION.

AND SO THAT'S WHAT WE BUILT IN THE BUDGET FOR THIS FISCAL YEAR AND NEXT FISCAL YEAR, JUST UNTIL OUR ROUTES GET BACK TO THE LEVELS THEY WERE.

AND IF THEY DO GET BACK TO LEVELS THEY WERE, THAT JUST MEANS INCREASED REVENUE ON THAT SIDE BECAUSE OUR EXPENDITURE BUDGET FOR TRANSPORTATION IN REGARDS TO THE NUMBER OF DRIVERS HAS NOT CHANGED.

WE STILL NEED THOSE NUMBER OF ROUTES WITH INTERSESSION AND THE SCHOOL YEAR BEING OPERATIONAL. TALK TO ME ABOUT WHAT YOU FORESEE FOR FLEET REPLACEMENT.

FLEET REPLACEMENT. WE ACTUALLY HAVE A PRESENTATION COMING TO THE BOARD IN MAY AS PART OF THE PLAN THAT'S BEEN PRESENTED WITH TRANSPAR AND ONGOING.

AND SO TO CONTINUE MODELING THAT PLAN, FLEET REPLACEMENT, THOSE DOLLARS ARE NOT BUILT INTO THE GENERAL FUND BUDGET PROJECTIONS BECAUSE A BOND PROGRAM COULD ALSO PAY FOR FLEET REPLACEMENT. HISTORICALLY, GISD HAS PAID FOR FLEET REPLACEMENT WITH GENERAL FUND DOLLARS.

SO IN MAY, WITH THE FUND BALANCE THAT WE DO HAVE AS A DISTRICT RECOMMENDATION, BEING THAT WE TRANSFER THOSE MONIES OUT OF THE GENERAL FUND FUND BALANCE TO A SIX HUNDRED, OUR CAPITAL OUTLAY FUND, WHICH ALLOWS US TO HAVE THAT REQUISITION TO OPEN OVER THE FISCAL YEAR OVERLAP. AND SO THOSE THAT MONEY ROUGHLY THREE POINT ONE MILLION DOLLARS WOULD COME FROM THE GENERAL FUND FUND BALANCE IN ORDER TO CREATE A REQUISITION IN MAY FOR THOSE BUSSES TO BE ORDERED. BUT THAT'S NOT AN ITEM THAT IS CURRENTLY PROJECTED IN THE BUDGET.

NO, SIR. SO THOSE WILL BE BUDGET AMENDMENTS.

THOSE WOULD BE IN AMENDMENTS OR IF WE WERE HAVE THAT IN THE BUDGET.

THAT SIZE OF EXPENDITURE.

IT VARIES. IT CAN BE, YES SIR IT IS NORMAL BECAUSE SOME DISTRICTS.

I MEAN, WE KNOW WE'RE GOING TO HAVE TO SPEND THE MONEY.

RIGHT. OR WE TABLE THE FLEET REPLACEMENT FOR A YEAR AND ALTER THE PLAN BASED ON THAT.

WE PROBABLY DON'T DO IT FOR TWO YEARS THOUGH DO YOU.

NO SIR, SO YOU WOULD NOT WANT TO DO THAT FOR MULTI MORE THAN TWO OR THREE YEARS IN A ROW BECAUSE IT DOES PUT A DISTRICT IN A SITUATION TO GET SO FAR BEHIND.

YOU HAVE MR. GLICK PUSHING A BUS.

[LAUGHTER] YOU COULD HAVE A BOND PROGRAM.

PUT AN ADVERTISEMENT ON MY BACK. I GUESS WHAT I'M GETTING AT IS, AGAIN, WE'RE COMING UP WITH A BUDGET WITH ALMOST AS MANY UNKNOWNS AS WE HAVE KNOWNS.

ONE OF THE THINGS I'M SPEAKING FOR MYSELF, ONE OF THE THINGS THAT I AM KEENLY INTERESTED IN IS, YOU KNOW, I'M ALWAYS BEEN ONE OF THOSE BEFORE YOU CAN COMMIT TO SOMETHING BEFORE YOU WRITE THE CHECK YOU GOT TO BE ABLE TO CASH IT.

RIGHT. AND SO I'M LOOKING AT PRACTICAL WAYS THAT WE CAN GET TO SOME KIND OF EXPECTATION OF A BALANCED BUDGET.

AND I KNOW THAT WE HAVE THIS YEAR A NEGATIVE.

WHAT WAS THE NUMBER THIS YEAR? YOU THINK THE BUDGET FOR THIS FISCAL IMPACT WILL BE WITH OUR POTENTIAL BUDGET SAVES JUST TO GO TO THAT SLIDE SPECIFICALLY, AGAIN, NON PAYROLL, IF IT COMES IN HIGHER THAN TWO MILLION, THAT DEFICIT BUDGET WILL DECREASE FURTHER.

BUT THERE'S POTENTIAL WE COULD HAVE OUR FIRST OPERATIONAL DEFICIT BUDGET, WHICH WE HAVE HIGHLIGHTED IN THE FIRST RATINGS, REGARDLESS OF FUND BALANCE, REGARDLESS OF PRIOR SURPLUS BUDGETS BASED OFF THAT ONE OPERATIONAL BUDGET, IT IS A DING ON A DISTRICT'S FINANCIAL RATING, EVEN THOUGH THERE'S FUND BALANCE THERE TO PROTECT THAT.

SURE. AND WHAT'S THAT NUMBER? I WOULD NEED TO LOOK, BUT I BELIEVE WE WOULD NOT RECEIVE A PERFECT SCORE, BUT WE WOULD BE IN THE A RANGE ON THAT.

BUT THE AMOUNT OF THE DEFICIT WE'RE PROJECTED OUT THIS YEAR, THE FOUR MILLION DOLLAR NUMBER I SAW.

THE RAISE INFORMATION THAT NUMBER IS RIGHT HERE HIGHLIGHTED IN THE BOX WITH A TWO PERCENT

[01:20:02]

NO I'M TALKING ABOUT THIS YEAR.

OH, THIS YEAR. WHEN WE FINISHED THE BOOK'S AFTER WE'RE THROUGH AND ALL THIS COVID SAVES AND EVERYTHING ELSE IS DONE.

WE THINK WE'RE GOING TO HAVE A GENERAL FUND ADJUSTMENT NEGATIVE OF HOW MUCH? CAPPED AT FOUR POINT.

AND THIS IS THIS NUMBER RIGHT HERE WE WOULD BE CAPPED AT FOUR POINT SEVEN MILLION.

I DO BELIEVE OUR NON PAYROLL NUMBERS WILL BE HIGHER THAN TWO MILLION ON OUR BUDGET SAVES. OKAY. AND SO THERE'S A CHANCE WITH OUR NON PAYROLL THAT WE COULD HAVE A BALANCED BUDGET ONCE IT'S ALL SAID AND DONE.

MR. MILLER.

DOESN'T INCLUDE WHAT HAVE BEEN OUR COVID SAVES DURING THOSE TIME PERIODS.

SO GREAT QUESTION. SO MOST OF OUR COVID SAVES WERE EXPERIENCED IN THE NINETEEN TWENTY FISCAL YEAR. AND SO AS PART OF OUR AUDIT WE HAD SHARED THE NUMBERS WITH THAT.

OUR REVENUE WAS RIGHT IN LINE WE WERE LESS THAN ONE PERCENT FROM OUR PROJECTED REVENUES.

IT'S OUR EXPENDITURE SAVES THAT WE HAD QUITE A BIT OF SAVINGS THAT WE NEVER HAD BECAUSE WE WERE BASICALLY I SAY NONOPERATIONAL.

WE WERE OPERATIONAL VIRTUALLY FOR FOUR MONTHS OUT OF THE TWELVE MONTHS LAST YEAR.

AND SO OUR PAYROLL SAVES LAST YEAR WERE ROUGHLY 16 MILLION.

OUR PROFESSIONAL AND CONTRACTED SERVICES, THERE WAS A LOT LARGER THAN NORMAL SAVE BECAUSE THOSE SERVICES COULD NOT BE PROVIDED OF SIX POINT EIGHT MILLION.

SUPPLIES AND MATERIALS WAS ALMOST FIVE MILLION.

AND SO BECAUSE WE WERE NOT OPERATIONAL, CAMPUSES AND DEPARTMENTS WERE NOT SPENDING MONEY FOR THOSE TYPE OF NEEDS.

AND SO IN OTHER OPERATING EXPENSES 2.7, SO WE HAD QUITE A BIT OF EXPENDITURE SAVINGS THAT WE'D NEVER HAVE HAD, ALL DUE TO NON BEING OPERATIONAL ON SITE FOR ABOUT A THIRD OF THE FULL YEAR. OK SO.

AND AGAIN, IN MY MIND, I'M TRYING TO GET ALL THE THINGS THAT COME IN AND THINGS THAT GO OUT. I KNOW THAT WE SAVED MONEY ON THAT, BUT I ALSO KNOW IT COSTS US MONEY BECAUSE WE DIDN'T HAVE EVENT REVENUE.

THERE'S A LOT OF REVENUE THINGS THAT WE DIDN'T HAVE, MAYBE TWO OR THREE MILLION DOLLARS.

YEP. SO I'M SITTING HERE TRYING TO GO, OK, IF WE WOULD HAVE HAD A NORMAL YEAR, WE'D HAD A LITTLE MORE INCOME, BUT WE'D PROBABLY SPENT A LOT MORE MONEY.

THE BUDGET IMPACT WOULD HAVE BEEN A LOT GREATER THAN IT CURRENTLY IS.

YEP.

I'M NOT EVER GOING TO SAY THAT WE WERE LUCKY TO HAVE COVID OR OUR NUMBERS WOULD HAVE BEEN WORSE. BUT I'M LOOKING AT, OK, WHEN WE DO GET BACK TO NORMAL OPERATIONS, THE BUDGET YOU PRESENTED IS KIND OF A NORMAL OPERATIONS BUDGET WITH A FEW MORE VARIABLES THAN WE'RE NORMALLY ABLE TO LOOK AT.

AND SO IF WE'RE LOOKING AT A NUMBER THAT'S IN THE 20S FOR A BUDGETED DEFICIT BASED ON HISTORY, THAT 20 NEVER BECOMES TWENTY OR TWENTY FIVE OR TWENTY SEVEN, IT ALWAYS COMES IN AROUND 15 BECAUSE OF BUDGET SAVES AND DIFFERENT ITEMS. HOW WOULD THAT NUMBER IMPACT OUR RATING? OUR RATING FOR THAT ONE FISCAL YEAR WE WOULD STILL RECEIVE AN A UNDER THE FINANCIAL RATING SYSTEM, WE WOULD OBVIOUSLY APPEAL THAT BECAUSE WE WOULD SHOW THAT WE DO HAVE THE FUND BALANCE BECAUSE OTHERWISE A DISTRICT, THERE ARE DISTRICTS THAT HAVE FUND BALANCES BUILT UP TO 9, 10, 11 MONTHS OF THEIR FISCAL OF THEIR OPERATIONAL BUDGET.

OURS IS ROUGHLY AROUND FIVE POINT SEVEN MONTHS.

WE WOULD BE ABLE TO APPEAL THAT AND HOPEFULLY THEY WOULD GRANT THAT IN OUR FAVOR.

BUT IF THEY DID NOT, IT WOULD NOT HURT OUR CREDIT RATING, PER SAY, BECAUSE WE STILL HAVE THE FUND BALANCE THERE AND WE WOULD STILL MEET WITHIN ALL THOSE INDICATORS.

BUT OUR FIRST RATING, WE WOULD NOT HAVE A PERFECT SCORE.

AND JUST KNOWING THAT GOING INTO IT, AS LONG AS WE'RE ABLE TO COMMUNICATE THAT AND BE TRANSPARENT WITH THAT, THAT IS VERY NORMAL AND REASONABLE IN THAT TYPE OF ASPECT.

CERTAINLY.

I'M GOING TO STOP.

MR. BEACH GO AHEAD.

I WANT TO ASK FOR SOME CLARIFICATION KIND OF ALONG THE SAME LINES, WHAT JAMIE WAS TALKING ABOUT, THE MONEYS, THE PROJECTED HERE, THE MONEYS THAT ARE NOT PROJECTED OVER HERE AND THE CLARIFICATION ON THE STUDENT NUTRITION.

I'D LIKE SOME CLARIFICATION THERE.

THE MONEY THAT YOU SAID IT MIGHT OFFSET, THAT WE WOULD HAVE TO ACCOMMODATE THE MEALS THROUGH 2022 ARE WE LOOKING AT THEM GIVING DIRECT MONEY FROM THE FEDERAL GOVERNMENT FOR THE NUTRITION PROGRAM TO GARLAND INDEPENDENT SCHOOL DISTRICT, OR IS THAT SOMETHING I MISUNDERSTOOD OR DON'T UNDERSTAND.

WELL, AND MR. BEACH, I'LL SPEAK TO IT AND MS. MAYO WILL SPEAK TO IT IF I DON'T ANSWER YOUR QUESTION IF I'M UNDERSTANDING YOUR QUESTION CORRECTLY.

NEXT YEAR WITH MORE, WE WILL HAVE MOST OF OUR STUDENTS BACK FACE TO FACE.

AND WITH THAT AND THOSE ADDITIONAL REVENUES, WE WOULD COME BACK MORE TO A BALANCE OR SURPLUS BUDGET, AS WE'VE ALWAYS HAD OVER THERE.

UNDER COVID THE TEXAS DEPARTMENT OF AGRICULTURE AND THE FEDS HAVE GRANTED BASICALLY THAT EVERY MEAL IS REIMBURSABLE.

SO WE'RE ABLE TO SUBMIT, GET PAID FOR THAT TO GO BACK OF THE MEALS THAT WHERE WE WERE OVER.

YEP. WELL, THAT WILL IMPACT ONE NINETY NINE THEN BECAUSE THAT WAS MONEY WE PULLED FROM THE BUDGET. WELL WHERE IT IMPACTS 199 IS SINCE WE'RE SERVING SO FAR LESS MEALS, OUR EXPENDITURE SIDE FOR PAYROLL, IT'S PRETTY MUCH STAYED THE SAME.

WE ARE BUYING LESS SUPPLIES, BUT OUR BULK OF OUR BUDGET IS BEING PAID OUT.

THE REVENUE COMING IN IS NOT AS HIGH AS IT HAS BEEN BECAUSE WE'RE SERVING SO FAR LESS

[01:25:02]

WE WILL HAVE A VIRTUAL CAMPUS OR CAMPUSES THAT CAPS A CERTAIN NUMBER OF STUDENTS SO AS A WHOLE MOST OF OUR CAMPUS WILL BE BACK FACE TO FACE.

WELL, THAT, IN TURN WILL GENERATE MORE REVENUE FROM THE FEDS, BUT ALSO FOR STUDENTS WHO CHOOSE TO BUY ALA CARTE ITEMS THAT AREN'T NECESSARILY COVERED UNDER THOSE GUIDELINES, ICE CREAM, FOR EXAMPLE, OR CHIPS, THE KIDS DO PAY FOR THOSE OUT OF POCKET.

AND SO WITH WITH INCREASED FACE TO FACE, THAT'S JUST MORE STUDENTS BEING SERVED.

AND SO THAT'S WHERE THAT ADDITIONAL REVENUE WOULD COME BACK IN WHEN OUR EXPENDITURES WOULD STAY ALMOST THE ON THE VIRTUAL SIDE. WILL THOSE STUDENTS THAT DECIDE TO GO THAT DIRECTION, WILL THEY HAVE TO COME GET THEIR OWN FREE MEALS? WE'RE NOT GOING TO BE DELIVERING THOSE, ARE WE? IT'D BE THE MODEL WE'VE OPERATED NOW FOR OUR STUDENTS WHO ARE VIRTUAL.

WE WOULD HAVE CAMPUS LOCATIONS FOR PICKUP.

OKAY. AS OF RIGHT NOW.

NOW, THEY HAVE NOT TALKED ABOUT NEXT SCHOOL YEAR.

THEY'VE TALKED THROUGH THE SUMMER THAT TDA IS GOING TO GRANT THAT SAME REIMBURSABLE MEAL OPPORTUNITY FOR DISTRICTS FOR TO OFFER STUDENTS WHO ARE VIRTUAL.

SO THAT IS GOING THROUGH THE SUMMER.

THAT IS WE DON'T KNOW ABOUT NEXT FALL, AN NEXT SCHOOL YEAR YET AT THIS TIME.

DO YOU FEEL LIKE THAT WE WILL BE ABLE TO ON YOUR NEXT STEP, YOU PUT DOWN THE PRELIMINARY FINAL BUDGET TO THE BOARD.

DO YOU THINK THAT WE WILL KNOW SOMETHING PRETTY FACT OF THE MATTER ON THIS AS FOR WHEN YOU PRESENT THAT AT THE END OF MAY.

WELL, AND IT GOES BACK TO COVID.

AND THAT COVID IMPACT.

WHEN YOU BUILD A PLANE, MOST PEOPLE GET TO BUILD A PLANE, THEN THEY FLY IT, TEXAS SCHOOL FINANCE YOU'RE BUILDING THE PLANE AND FLYING IT AT THE SAME TIME AS ALL THE ASSUMPTIONS ARE PLAYING OUT. AND SO SIMILAR TO LAST YEAR WE ADOPTED THE BUDGET UNDER COVID AND GOING INTO THIS FISCAL YEAR AND ALL THOSE UNKNOWNS IN REGARDS TO STUDENT NUTRITION, WE'D BE DOING THE SAME THING. WE'RE ADOPTING A BUDGET IN REGARDS TO WE DON'T KNOW WHAT THE FDA OR THE FEDS OR TDA MAY STATE IN REGARDS TO REIMBURSEMENT MEALS AT THIS TIME.

THANK YOU.

MR. GLICK. YEAH, ONE THING I THINK IS GOING TO BE INTERESTING DURING THIS NEXT COMING FISCAL YEAR, AS OUR FEDERAL REVENUES USUALLY ARE AROUND SOMEWHERE AROUND THE TWO PERCENT NUMBER, AND THERE ARE REPORTS THAT PRESIDENT BIDEN AND THE DEPARTMENT OF EDUCATION ARE GOING TO CONSIDERABLY INCREASE THE AMOUNT OF TITLE ONE TITLE TWO TITLE THREE FUNDS.

AND I MEAN, MS. GRIFFIN WAS NICE ENOUGH.

WE HAD THE PRESENTATION FROM YOUR DEPARTMENT A COUPLE OF MEETINGS AGO OF ALL THE DIFFERENT DOLLARS WE GET FROM THE FEDERAL GOVERNMENT.

I THINK THOSE DOLLARS COULD INCREASE DRAMATICALLY.

AND THOSE ARE NOT SUBJECT, AS FAR AS I KNOW, TO STATE CONTROL.

AND IN SOME PLACES, THEY TAKE OVER COMPLETE SALARIES THAT WE PAY.

SO I THINK THAT COULD BE AN INTERESTING KICKER AS WE GET INTO NEXT FISCAL YEAR.

YES, SIR. AND THOSE MONEYS, BECAUSE IT'S NOT LAW AND THERE'S A LOT OF DISCUSSIONS, WE'VE NOT BEEN ABLE TO EVEN PROJECT THAT OUT.

BUT THERE IS A LOT OF DISCUSSION AT THE FEDERAL LEVEL ABOUT INCREASING MONEY FOR IDEA TITLE ONE, WHICH WE DO HAVE THOSE PROGRAMS. AND IF WE WANT TO GET THAT, WE REPORT THOSE FUNDS TO THE STATE LEVEL.

BUT IN REGARDS TO THE FEDS, IT'S A MORE EXTENSIVE REPORTING PROCESS BECAUSE WE DO HAVE TO REPORT THAT JUST LIKE WE DO THE STATE LEVEL.

BUT IT'S FAR MORE RESTRICTIVE TYPICALLY IN HOW THOSE DOLLARS ARE EXPENSED.

THE STATE. CORRECT. THANK YOU.

THANK YOU.

MS. GRIFFIN. YES.

THANK YOU FOR THE PRESENTATION.

I THINK WE HAVE PROBABLY IN THESE LAST THREE SESSIONS ANSWERED MOST OF THE QUESTIONS THAT I HAVE RECEIVED FROM BOARD MEMBERS IN TERMS OF THE INFORMATION.

BUT I DO WANT TO CALL OUR ATTENTION TO OUR AGENDA IN OUR REGULAR MEETING AT 5:00.

AND ONE OF THE ACTION ITEMS THAT WE HAVE IN THE UPCOMING AGENDA IS TO CONSIDER APPROVAL OF THE 2021 2022 RAISE SCENARIOS.

SO THOSE WERE PRESENTED TODAY IN THIS.

AND I JUST THINK SINCE IT LOOKS LIKE WE'RE IN GOOD TIME, THAT IF THERE ARE QUESTIONS THAT WE NEED TO ASK ABOUT THAT BECAUSE IT IS ON THE AGENDA AND WE COULD GO BACK TO THE PAGES WHERE THE RAISE SCENARIO STARTED HERE AND THAT WE COULD HAVE OUR DISCUSSION BASICALLY AT THIS POINT. AND REMEMBER THAT THIS IS AN ACTION ITEM THAT WAS PROJECTED PROBABLY NOT GOING TO MAKE STAFF HAPPY, BUT IF WE DON'T THINK WE ARE THERE, BUT THIS IS

[01:30:04]

SO I'M JUST LETTING US KNOW THAT IT'S ON THE UPCOMING AGENDA AT 5:00.

AND I HAVE NO IDEA WHAT YOUR WISHES ARE MR. PRESIDENT, MR. SUPERINTENDENT. SO THE SCENARIOS THAT WE'RE GOING TO PRESENT TO YOU RIGHT NOW IS GOING TO BE TWOFOLD. THE FIRST ONE IS GOING TO BE AN OVERALL PAY RAISE.

AND THEN THE OTHER ONE WOULD BE IF THE BOARD WISHES TO TAKE OUT A FUND BALANCE A LONGEVITY BONUS FOR THOSE THAT ARE STAYING.

AND WE COULD EVEN INCLUDE ALL NEW PEOPLE, GET HALF OF WHATEVER WE ALLOCATE TO THE PEOPLE THAT ARE HERE. SO, FOR INSTANCE, IF YOU DECIDED TO GIVE FIVE HUNDRED DOLLARS TO PEOPLE THAT STAYED, NEW EMPLOYEES THAT COME IN FOR NEXT YEAR WOULD GET 250.

OK, IF WE PROPOSED A THOUSAND DOLLARS, THEN NEW EMPLOYEES WOULD BE FIVE HUNDRED.

WE WERE GOING BACK AND FORTH AND THERE'S NO IDEAL SITUATION.

BUT THE THINGS THAT WE HAVE TO CONSIDER WHENEVER WE'RE MAKING THESE TYPE OF TOUGH CALLS IS WHAT IS THE MARKET VALUE GOING TO BE NEXT YEAR? HOW CAN WE RETAIN OUR EMPLOYEES, ESPECIALLY THOSE THAT WE GAVE CONTRACTS TO? RIGHT. WE SAID WE WANT YOU BACK.

HOW DO WE KEEP THEM BACK? WE HAVE TO REMAIN COMPETITIVE.

IN TODAY'S MARKET RIGHT NOW EVERY DOLLAR MATTERS.

AND SO WHAT WE'RE PROPOSING RIGHT NOW IS TWO PERCENT.

AND THEN IF THERE'S ANYTHING THAT THE BOARD WANTS TO GIVE FOR LONGEVITY, WE WOULD TAKE OUT A FUND BALANCE. IS THAT NOT CORRECT, DR.

RINGO? YES, SIR.

THE MODEL WE SHOWED WAS TWO PERCENT FROM MIDPOINT.

DO WE HAVE UP FOR THAT.

ALL OF THAT WAS WHAT PAGE.

YES, MA'AM. IT IS GOING TO BE ON SLIDE NUMBER THIRTY THREE FOR THE BOARD.

AND WE WOULD ENTERTAIN ANY COMMENTS, QUESTIONS OR DISCUSSION.

THE RETENTION BONUSES REFLECTED HERE.

DR.

LOPEZ ALLUDED TO THE NEW EMPLOYEE PAYMENT AND HALF OF THAT.

THAT IS NOT REFLECTED IN THIS NUMBER THAT WAS DISCUSSED AFTER THE PRESENTATION WAS DUE AND SUBMITTED. AND THE ONE TIME PAYMENT IS NOT.

YES SIR. THE ONE TIME PAYMENT FOR RETENTION IS REFLECTED ON SLIDE 33 AND WE HAVE IT BROKEN OUT. AND THAT'S. THE TWO PERCENT RAISE IS EIGHT POINT THREE EIGHT FIVE MILLION.

THAT IS ONGOING IN THE BUDGET.

THE ONE TIME PAYMENT OF A FIVE HUNDRED DOLLAR AND TWO FIFTY RETENTION BONUS IS ALSO REFLECTED IN THAT BUDGET.

I SEE THAT NOW THANKS. ROBERT.

MR. GLICK.

THANK YOU. EITHER FOR DR.

LOPEZ, DR. RINGO.

ONE OF THE WAYS DISTRICTS GET MEASURED IS AND WHAT'S ALWAYS REPORTED IN THE NEWSPAPERS IS THE STARTING SALARY FOR NEW TEACHERS.

SO LET'S ASSUME IT'S TWO PERCENT.

DO WE KNOW WHAT THE NEW STARTING SALARY WOULD BE? I'LL DEFER TO DR.

BROWN.

SHE SAID SHE DOESN'T HAVE THAT CALCULATION.

TODAY. OK, SO A LITTLE OVER A THOUSAND DOLLARS EXTRA GIVE OR TAKE.

SO CLOSE TO THE FIFTY SIX.

DOES THAT SOUND ABOUT RIGHT? YES. I WOULD SAY BASED OFF HISTORICALLY WHEN WE HAVE DONE RAISES THAT WOULD BE.

ABOUT? IN THAT RANGE.

YES, SIR. THANK YOU.

YES. FIFTY FIVE NINE.

YEAH. MR. MILLER, I SAW YOUR HAND. YEAH, YEAH, JUST POINT OF CLARIFICATION, IF WE'RE INDEED LOOKING IN THE FACE OF A DEFICIT BUDGET, THEN WOULDN'T RAISES AND ONE TIME PAYMENTS ALL TECHNICALLY BE COMING OUT OF THE GENERAL FUND, BUT THEY'RE NOT GENERATING THE MONEY IN THIS BUDGET TO PAY FOR IT.

YES SIR FOR THAT ONE. YES THE ONE TIME PAYMENT WOULD BE FUND BALANCING IT FOR ONE YEAR, BUT RAISES AND ONE TIME WOULD COME OUT OF THAT FOR ONE YEAR.

WELL, ALL I'M SAYING IS JUST LOOKING AT THIS NEXT YEAR, IF WE'RE PROJECTING A DEFICIT, THEN ANY ADDITIONAL MONIES THAT WE ELECT TO SPEND ARE GOING TO COME OUT OF THE GENERAL FUND BECAUSE WE'RE NOT GENERATING CURRENT YEAR REVENUE WITH WHICH TO PAY FOR.

YES, SIR. MR. BEACH. OF THIS TWO PERCENT THAT WE'RE TALKING ABOUT ON THE PAY RAISE, HOW MUCH OF IT WOULD IMPACT THE EMPLOYEE ON THEIR HEALTH INSURANCE AND ALSO ON THE TRS SIDE.

SO IT WOULD COVER THE INCREASE ON THE TRS SIDE.

THAT IS, AS WE HAD SHOWN IN PRIOR PRESENTATIONS, THERE'S AN EMPLOYEE CONTRIBUTION THAT'S

[01:35:02]

TRS ACTIVE CARE HAS SAID THEY ARE DELAYING RELEASING THE RATES FOR TWENTY ONE, TWENTY TWO.

AND THAT'S INFORMATION AS OF TODAY.

SO THEY HAVE NOT YOU KNOW, LAST YEAR WE DID RECEIVE REDUCED FOR THE FIRST TIME.

WE SAW REDUCED RATES FOR OUR ACTIVE CARE ON SOME OF THE PLANS.

BUT FOR NEXT YEAR'S PROJECTIONS, YOU KNOW, THE DISTRICT CONTRIBUTION REMAINS THE SAME.

SO WE DON'T KNOW WHAT.

WHO'S OVERSEEING OUR TRS ACTIVE CARE PROGRAM RIGHT NOW? THE STATE.

WELL WE REPORT TO THEM.

YES SIR SO OUR BENEFITS TEAM AND HR TEAM THE DISTRICT. SO OUR PAYROLL AND BENEFITS TEAM REPORTS ALL OUR INFORMATION TO TRS AND TRS ACTIVE CARE. SO AN EMPLOYEE WHO ELECTS TO TAKE OUT ACTIVE CARE, THAT GETS CODED ON THEIR PAY STUB AND THAT GETS REPORTED TO THE STATE AND PAID TO THE STATE.

WE DON'T MANAGE OUR OWN HEALTH CARE HERE.

SO YEARS AGO WHEN THIS COLLECTIVE CONTRACT CAME ACROSS THE STATE, IT WAS A LIFETIME CONTRACT. THE THOUGHT WAS THAT THE MORE PEOPLE AND MORE STATES, I MEAN MORE DISTRICTS THAT GET INVOLVED, THE MORE IT WOULD DRIVE DOWN PRICES.

WELL WHAT YOU DID WAS CREATE A NONCOMPETITIVE ENVIRONMENT TO WHERE YOU CAN'T WE CAN'T CONTROL THE COSTS. SO IF TOMORROW THEY SAID YOU GUYS ARE GOING UP TWO THOUSAND DOLLARS, WE CAN'T OPT OUT, WE'VE GOT TO GO UP TWO THOUSAND DOLLARS, WHATEVER, IT IS.

WITH OTHER DISTRICTS THAT ELECTED NOT TO GET ON IT THOSE ARE SELF-FUNDED DISTRICTS.

AND THOSE SELF-FUNDED DISTRICTS MANAGE THEIR THEIR OWN HEALTH CARE WITHIN THE DISTRICT.

AND THEY HIRE A TEAM TO DO IT.

AND IT'S USUALLY AT A LOWER COST SAVINGS COMPARED TO WHAT WE'RE EXPERIENCING IN TRS.

IF WE REMEMBER LAST YEAR WE WERE LOOKING TO OPT OUT OF TRS.

WE WERE USING OUR DISTRICT OF INNOVATION TO REALLY LEVERAGE US TO GO OUT OF IT.

NOW, IT WOULD HAVE COST US SOME MONEY AND DISTRICTS STARTED GETTING A HOLD OF THAT.

AND THEN THAT'S WHEN TRS CARE DROPPED THEIR PRICES TO WHERE WE COULDN'T MANAGE THAT, BECAUSE IF WE DID THAT, WE STILL HAVE TO HAVE A CONTRACT WITH THEM.

WE CAN'T GET OUT OF IT.

ALL WE'RE DOING IS OFFERING ANOTHER COMPONENT.

AND IN ORDER FOR TO DRIVE DOWN THOSE COSTS, THE DISTRICT WOULD HAVE TO INVEST MORE MONEY.

SO THOSE THINGS ARE OUT OF OUR CONTROL, TOTALLY OUT OF CONTROL.

WE JUST REPORT THE MONEY WE GET FOR THE PROGRAM TO THEM IT'S LIKE AN ACCOUNTING THING.

ALSO, AND I'M GOING TO THROW IT OUT THERE ANYWAY.

THERE WAS ONE OTHER SCENARIO THAT I WAS INTERESTED IN AND LOOKING IN ON A PAY RAISE FOR THE EMPLOYEES INSTEAD OF DOING A PERCENTAGE ACROSS THE BOARD.

I WAS PERSONALLY BECAUSE I KNOW JUST LIKE WE TALKED ABOUT, WHEN YOU GIVE A TWO PERCENT RAISE, DOES THE EMPLOYEE REALLY SEE THAT INCREASE ON THEIR PAY STUB.

IT'S VERY DISHEARTENING WHEN THEY GET THEIR PAY STUB AND THEY MAY HAVE AN INCREASE OF THIRTY DOLLARS ON THEIR PAYCHECK AFTER ALL THINGS ARE SAID AND DONE.

SO IT'S VERY DISHEARTENING, EVEN THOUGH IT IS A PAY RAISE THAT WE'RE TALKING ABOUT.

AND I KNOW THAT THE INCENTIVE THAT WE GAVE LAST YEAR, THE FIVE HUNDRED DOLLARS AT CHRISTMAS, EVERYBODY HAD JUST WENT.

THEY LOVED IT. I MEAN, BECAUSE IT WAS USABLE MONEY THAT THEY COULD USE.

AND THAT'S WHAT I WAS LOOKING AT FIFTEEN HUNDRED DOLLARS THAT I WAS INTERESTED IN AND DOING ONE AT THE END OF THE FIRST INTERSESSION, ONE AT CHRISTMAS AND ONE AT THE END OF SPRING BREAK OR THE SECOND INTERSESSION IN THE SPRING SO THE DISTRICT COULD DIVIDE THAT UP AND THEY WOULDN'T HAVE TO MAKE ONE BIG LUMP SUM PAYMENT AT THAT TIME.

AND WE COULD LOOK AT OTHER AND WE'D HAVE THREE DIFFERENT TIMES TO REALLY SHOW OUR EMPLOYEES THE APPRECIATION THAT THEY DESERVE FOR WHAT'S HAPPENED OUT THERE THIS LAST YEAR AND BE ABLE TO HAVE USABLE MONEY THAT THEY WOULD HAVE IN THEIR POCKET.

SO THAT'S JUST A SCENARIO I'M THROWING OUT THERE.

AND TO HIGHLIGHT ONE TIME PAYMENTS OR MULTIPLE PAYMENTS THAT ARE SPREAD OUT LIKE THAT THEY DO NOT QUALIFY AS BEING WHAT IS CALLED TRS ELIGIBLE, WHICH MEANS IT DOES NOT FACTOR INTO THAT EMPLOYEE'S HIGHEST YEAR'S SALARIES.

IT WOULD JUST BE AN EXTRA PAYMENT.

BUT TRS SAYS THAT WOULD NOT QUALIFY AS BEING TRS ELIGIBLE IN THEIR REPORTING.

ANY OTHER QUESTIONS.

MR. MILLER.

YES JUST A QUESTION THIS MAY BE TO MS. GRIFFIN, REALLY JUST FROM A SCHEDULE AND A CALENDAR STANDPOINT, I DON'T HAVE ANY BURNING

[01:40:06]

SO MY QUESTION WOULD BE, AND IF IT'S YOU MS. GRIFFIN THAT'S FINE OR RINGO IS, IS THERE ANYTHING THAT'S GOING TO CLEAR UP BETWEEN NOW AND MAY? I KNOW WE HAVE TO HAVE A FINAL BUDGET BY JUNE, IS THAT CORRECT? YES, SIR, WE HAVE TO ADOPT OUR BUDGET IN JUNE. SO WE PROBABLY OUGHT TO BE ABLE TO WE NEED TO MAKE OUR DECISION ON RAISES BY MAY SO YOU CAN WORK ON A FINAL BUDGET TO HAVE IT READY FOR A JUNE PRESENTATION.

IS THAT ASSUMPTION CORRECT? YES. THAT WOULD WORK THAT WOULD BE PREFERABLE.

THEN WE WOULDN'T HAVE TO HAVE ANY EMERGENCY MEETINGS IN JUNE TO DO THAT KIND OF STUFF.

SO, YOU KNOW, I PERSONALLY WOULD LIKE TO IF IT'S AN ACTION ITEM TODAY, YOU KNOW, I WOULD PERSONALLY PROBABLY LIKE TO PULL THAT AND PUT IT AS AN ACTION ITEM IN MAY AND SEE IF ANY OF THIS STUFF CLEARS UP FOR US.

ANYTHING HELPS US UNDERSTAND BETTER WHAT OUR BOTTOM LINE IS GOING TO BE WITH THAT JUNE BUDGET. MS. GRIFFIN. THANK YOU, MR. MILLER. ONCE AGAIN, THIS CAME TO FINANCE AND THE MEMBERS THERE AT THAT TIME, ALONG WITH THE BOARD THAT WAS THERE, THOUGHT THAT WE SHOULD PUT IT ON.

SO I DON'T HAVE A PREFERENCE ONE WAY OR THE OTHER.

MY QUESTION WOULD BE TO DR.

RINGO AND DR.

LOPEZ DOES THAT GIVE YOU ENOUGH TIME TO DO WHAT WE NEED TO DO TO HANDLE THIS? I THINK IF I REMEMBER PART OF THE CONVERSATION IN COMMITTEE, IT WAS TALKING ABOUT HOW WE DON'T WANT TO LOSE ANY EMPLOYEES.

AND WOULD ANNOUNCING THE RAISES AT THIS POINT ENSURE THAT SOME STAFF MEMBERS WOULD REMAIN WHO MIGHT BE CONSIDERING WHO ARE ON THE FENCE RIGHT NOW WHETHER TO STAY OR LEAVE? MY OTHER POINT IS THAT I THINK WE MAY KNOW MORE IN MAY, BUT I STILL SEE US LOOKING AT A DEFICIT BUDGET THAT I BELIEVE WE CAN MANAGE BECAUSE WE ARE GOING TO GET SOME MONEY FROM THE FEDERAL GOVERNMENT.

WE HAVE REPRESENTATIVES IN D.C.

AND WE HAVE REPRESENTATIVES IN AUSTIN.

AND WE HAVE TO SEND AN EMAIL AND I'LL CALL THEM AND LET THEM KNOW WHAT'S HAPPENING TO US HERE. BUT BECAUSE OF THE SCENARIO THAT WAS PRESENTED WITH THE FUND BALANCE, WE'VE ALWAYS SEEN THAT BECAUSE OF THE PAYROLL SAVINGS THAT THERE IS EXTRA MONEY BASICALLY THERE.

SO I DON'T HAVE A PROBLEM WITH WAITING, BUT I THINK WE'LL PROBABLY LOOK ABOUT THE SAME.

IT'S JUST A LINDA GRIFFIN PERSPECTIVE.

I COULD BE WRONG AND I WOULD HOPE THAT I'M WRONG.

BUT TO ME, IT'S GOING TO LOOK THE SAME NEXT MONTH AS IT RELATES TO IF WE'RE TRYING TO GET TO A BALANCED BUDGET, I THINK IT'S GOING TO BASICALLY LOOK THE SAME.

AND SO I WILL I'M AT THE WILL OF THE OTHER BOARD MEMBERS AND WE CAN EASILY PULL THIS OFF IF THAT'S THE DESIRE OF ALL OF THE BOARD MEMBERS.

I JUST WANT TO ANSWER THE QUESTION PROGRAMMATICALLY SPEAKING.

I WANT YOU TO THINK OF IT THIS WAY.

IN ORDER FOR US TO ADEQUATELY DO EVERYTHING, WE NEED A LITTLE RUNTIME.

OUR BUDGET STARTS JULY 1ST AND WE RAN OVER.

YES, LAST YEAR.

SO IN FULL TRANSPARENCY, NOT EVERYBODY GOT THEIR RAISE IN JULY.

NOW, TEACHERS DON'T GET THEIR RAISES IN JULY.

THERE'S HAPPEN, I BELIEVE, SEPTEMBER, IF I'M CORRECT.

YES, SIR. SO NO MATTER WHAT WE DO WITH THE TEACHERS.

SO IT GIVES US SOME RUNWAY FOR THOSE AND WE DON'T HAVE TO DO ALL THIS RETRO PAY AND EVERYTHING ELSE. THE SECOND THING IS, IF AS A BOARD MEMBER, I DON'T KNOW WHAT YOU'RE THINKING, BUT IF AS A BOARD MEMBER, LET'S JUST SAY WE RECOMMEND TWO PERCENT AND FIVE HUNDRED, IF YOU FEEL THAT'S AT THE HIGH END THAT YOU'RE LIKE, OH MY GOSH, THAT'S BEST CASE SCENARIO, THEN I RECOMMEND WE DON'T DO ANYTHING.

IF YOU FEEL LIKE THAT'S ON THE LOW END, WE COULD ALWAYS MODIFY IT HIGHER IN MAY WITH MORE MONEY. I WANT YOU TO PUT THIS IN PERSPECTIVE.

WHEN IS OUR BOARD MEETING, END OF MAY, RIGHT AFTER THAT, IS GRADUATION'S RIGHT AFTER.

I MEAN, IT HITS HARD.

POP, POP, POP.

WHEN DO WE GIVE OUT CONTRACTS? MAY 3RD. THOSE ARE GOING TO BE MAILED OUT AND WE WERE HOPING AND THAT DOESN'T MEAN IT HAS TO HAPPEN, BUT WE'RE HOPING THAT WAY WHENEVER THEY GET THEIR CONTRACTS COME MAY THIRD,

[01:45:02]

AND SO WHENEVER WE GET THOSE CONTRACTS, WE FEEL MORE SECURE THAT THOSE PEOPLE ARE GOING TO STAY. WE START AUGUST 2ND.

WE WANT TO MAKE SURE THAT WE'RE FULLY STAFFED.

SO EVERYTHING THAT WE'RE DOING IS FRONT LOADED BECAUSE WE HAVE A SHORT RUNWAY.

WE DON'T HAVE A LONG RUNWAY LIKE WE DON'T HAVE ALL OF JULY AND PART OF AUGUST TO DO A LOT OF HIRING, OUR HIRING AND EVERYTHING HAS TO START.

AND THAT WAS THE LOGIC, YOU KNOW.

AND IF WE WAIT ANOTHER MONTH, YOU KNOW, WE HAVE A MIRACULOUS TEAM, WE'LL ALWAYS MAKE THINGS WORK. BUT WE JUST WANTED ALL OF THOSE FACTORS TO BE IN PLACE.

SO THEN THAT WAY WE CAN SECURE A LOT OF THE POSITIONS AHEAD OF TIME.

WE THOUGHT CONSERVATIVELY, TWO PERCENT.

THERE'S DIFFERENT FEELINGS ABOUT TWO PERCENT.

THE ONLY BAD PART, YOU KNOW, WHAT JOHNNY BEACH BROUGHT? RIGHT. THEY GET ALL THEIR MONEY AT ONE TIME, BUT THEN THAT DOESN'T GO INTO THE RETIREMENT AT ALL. SO YOU DO THAT.

YOU DO THE LONG GAME.

YEAH. YOU'RE LIVING SHORTLY.

YOU GOT THIS WHOLE MONEY. BUT THEN WHEN IT COMES TO RETIREMENT, YOU'RE LIKE, MAN, OVER TIME I'M MISSING OUT ON HUNDREDS OF DOLLARS A MONTH BECAUSE OF NOT GIVING THAT FULL AMOUNT OUT. WE'RE LOOKING AT WIN WIN SITUATIONS.

AND IDEALLY, WE SHOULD HAVE ALREADY KNOWN WHERE THAT MONEY WAS COMING FROM, FROM THE FEDERAL GOVERNMENT. BUT RIGHT NOW, WE'RE STRAPPED.

SO, MR. JOHNSON. I'M SORRY, MR. GLICK WAS FIRST. THEN MR. JOHNSON. MR. GLICK. JUST A QUESTION FOR MR. BEACH. I'M INTRIGUED BY YOUR SCENARIO PRESENTED.

WERE YOU THINKING OF THE 500, 500, 500 PLUS A PERCENTAGE OR JUST THE THREE NUMBERS? I DIDN'T CONSIDER THE PERCENTAGE.

I MEAN, I'M OPEN TO THAT BECAUSE MAYBE, YOU KNOW, I THINK THAT THAT'S SOMETHING THAT WE CAN SHOW THE TEACHERS HOW MUCH WE REALLY APPRECIATE IF WE'RE GOING TO USE SOME FUND BALANCE TO HELP OFFSET AND WOULDN'T HAVE TO TAKE THAT LUMP SUM OF FIFTEEN HUNDRED DOLLARS AT ONE POP, WE MIGHT LOOK AT A TWO PERCENT PLUS THE FIFTEEN HUNDRED DOLLARS.

THANK YOU, SIR. MR. JOHNSON.

THIS IS A QUESTION FOR DR.

LOPEZ. BASED ON WHAT YOU JUST SAID, WHEN YOU HAVE A CONTRACT THAT YOU SAID THEY GO OUT ON THE 3RD OF MAY.

IS THAT RIGHT. WOULD IT LIST THAT LONGEVITY BONUS IN IT? NO, IT DOESN'T HAVE NECESSARILY WHAT THEY'RE GOING TO GET PAID OR WHEN THEY'RE LOOKING AT IT, THAT'S WHAT THEY LOOK AT.

SO WE'RE HOPING WE'LL GET MORE OF THEM IN RIGHT AWAY WHEN THEY KNOW WHAT THE PAY IS RATHER THAN. I MEAN, DR.

GRADYNE BROWN CAN TELL YOU, YOU KNOW, WE'RE WAITING SOMETIMES AND CALLING PEOPLE HEY THERE'S 10 DAYS LEFT, FIVE DAYS LEFT.

SIGN YOUR CONTRACT, YOU KNOW, SO WE'RE JUST HOPING THAT WOULD SPUR THEM TO SAY, OH, MAN, I'M GOING TO GET A RAISE, I'M GOING TO GET THIS, I'M GOING TO SIGN UP NOW, OK.

BECAUSE I WAS WONDERING IF MAYBE WE COULD STRIKE A BALANCE BETWEEN WHAT YOU'RE SAYING AND WHAT JAMIE'S KIND OF SAYING AND THAT WE CAN AGREE ON A PERCENTAGE AND THEN MAYBE DISCUSS A BONUS AT THE MAY MEETING OR SOMETHING OF THAT NATURE.

WELL, I WOULD SAY ON PAGE THIRTY THREE, SORRY, MR. PRESIDENT.

IT'S GOOD. BUT ON THIRTY THREE, IT SHOWS US WHAT WE'RE TALKING ABOUT.

SO THERE'S THE NUMBER FOR A TWO PERCENT RISE AND THERE'S THE NUMBER FOR A ONE TIME RETENTION BONUS.

THOSE ARE FIXED AT TWO PERCENT AND FIVE HUNDRED.

THAT'S JUST THE ADMINISTRATION RECOMMENDATION.

THERE'S NO OTHER VARIABLES OR.

OK, I GUESS I MISUNDERSTOOD WHAT YOU WERE SAYING.

I MEAN, FOR INSTANCE, LET'S SAY WE FIND OUT SOMETHING IN MAY, LIKE JAMIE'S, SUGGESTING.

YEAH THAT WE'RE GOING TO GET THE WHOLE WHOLE WE COULD DO BETTER THAN THIS FIVE HUNDRED.

WE CAN DO SOMETHING LIKE MAYBE WHAT JOHNNY IS SAYING WITH RESPECT TO A LONGEVITY BONUS, BUT WE CAN COMMIT TO THE TWO PERCENT TODAY IS KIND OF WHAT I'M SUGGESTING, COMMIT TO THE PERCENTAGE. AND THEN WE STILL HAVE SOME FLEXIBILITY WITH TIME IN MAY TO MAKE A DECISION ABOUT IF WE'RE GOING TO DO LONGEVITY BONUSES AND HOW MUCH WE'RE GOING TO DO.

WOULD THAT REQUIRE A DIFFERENT MOTION OR CHANGE TO WHAT? NO, IT WOULD BE IN WHOEVER IS MAKING THE MOTION WITH THAT PARTICULAR WORDING.

JOHNSON IS SAYING IS LET US COMMIT TO AN AMOUNT OF THE INCREASE PERCENTAGE WISE AND THEN LET US TALK ABOUT LONGEVITY AND OTHER THINGS WE CAN DO WITH STAFF ONCE WE KNOW WHAT WE'RE GOING TO GET AND HOPEFULLY.

MAINTAINS A LITTLE FLEXIBILITY.

FLEXIBILITY. YES, I UNDERSTAND. SORRY, I MISUNDERSTOOD WHAT YOU SAID INITIALLY.

MR. MILLER. YEAH I THINK THEN AND ALL THAT'S UNDERSTANDABLE.

[01:50:07]

ALSO, I'M SITTING HERE LOOKING AT THE FUND BALANCE CHART ON PAGE 34.

WHAT IS THE AMOUNT OF DAYS.

KIND OF A MINIMUM IS IT 60 DAYS OR 90 DAYS.

90 DAYS. THREE MONTHS.

THREE MONTHS. AND SO WHERE ARE WE WHAT IS THIS CHART, HOW MANY DAYS ARE REPRESENTED BY THESE BALANCES? WE HAVE ALMOST UNDER THIS ALMOST FIVE MONTHS.

AND THAT'S AGAIN, IF WE SPEND EVERY DOLLAR WHICH.

AND HOW MANY DOLLARS IS THE X? HOW MUCH MONEY IS THAT OVER THE 90 DAYS? WE ARE AND I WILL DO A QUICK CALCULATION, BUT WE ARE.

IN OTHER WORDS WHAT'S OUR EXCESS. OUR EXCESS WE WILL BE.

I'M JUST DOING A QUICK ROUNDING OF 267 MILLION.

SAY IT AGAIN.

I'M STILL DOING A QUICK I'M DOING IT REAL.

HE'S STILL ROUNDING.

WE'LL GIVE HIM A MINUTE. WE NEED ROUGHLY ONE HUNDRED AND FIFTY ONE HUNDRED AND FORTY FIVE MILLIONISH IN FUND BALANCE.

EVEN WITH OUR INCREASED.

THAT.

YOU GOT TO USE THE NEXT YEAR. THAT'S WHERE I BELIEVE IT'S GOING TO BE A HUNDRED AND 50 MILLION DOLLAR RANGE IS WHAT WE'LL NEED.

AND THEN THAT'S THE BASE LEVEL THAT'S BARRING ANY CATASTROPHE FROM HAPPENING ANY ONE HUNDRED AND FIFTY IS WHERE WE ARE AT.

BUT YEAH, IT'S YEAH.

WHEN UNASSIGNED AND MS. MAYO I'LL LET YOU SPEAK TO IT SINCE IT'S YOUR NUMBER, I DON'T WANT TO MISSPEAK.

THE UNASSIGNED THAT BEING 217, I'LL LET YOU.

THE ESTIMATED UNASSIGNED FUND BALANCE IS ABOUT TWO HUNDRED AND SEVENTEEN MILLION DOLLARS WITH ALL OF THOSE REDUCTION CONSIDERATIONS THAT WE SHOWED.

SURE. SO THAT'S WHAT I'M GETTING AT IS WE'VE HAD A BIG CUSHION.

I THINK IT'S BEEN GREAT AND WE'VE ADDED TO IT EVERY YEAR.

BUT NOW WE'RE IN A SCENARIO WHERE AS SOON AS WE GET FULLY FUNCTIONAL AT THE CURRENT TAX RATE, IN THE CURRENT ADA THAT WE HAVE, WE KNOW WHAT THE FULLY FUNDED SCHOOL DISTRICT'S GOING TO LOOK LIKE. IT'S GOING TO LOOK LIKE EVEN AFTER YOU SAVE SIX MILLION IN VACANCY PAYROLL'S AND ALL THAT STUFF IT'S STILL GOING TO BE OVER TEN MILLION DOLLARS AND ACCELERATING AS THE YEARS GO BY.

SO, YOU KNOW, WHAT I DON'T WANT TO DO IS GET DOWN TO WHERE WE'RE I DON'T WANT TO GET CLOSE TO THE 150. I WANT US TO HAVE THAT CUSHION.

THAT'S ONE OF THE THINGS THAT ALLOWS US TO BUY THOSE EXTRA BUSSES WHEN IT COMES UP OR MAKE THAT EXTRA EXPENDITURE WHEN IT COMES UP.

WE TALK ABOUT IT ALL THE TIME.

WE'LL JUST TAKE IT OUT OF GENERAL FUND.

MAN, IF IT WASN'T THERE WE WOULD NEVER HAVE THAT DISCUSSION BECAUSE WE COULDN'T TAKE IT OUT OF THE GENERAL FUND WITHOUT HARMING OUR STANDING.

SO I THINK TO ME, I'VE BEEN PROTECTIVE OF THAT AND WANTING TO BE PROTECTIVE OF THE FACT THAT WE HAVE A GOOD GENERAL FUND THAT ALLOWS US SOME FLEXIBILITY THAT I DON'T WANT US TO OVERLOOK. IF IT LETS US MISS THE BUDGET BY FIVE MILLION DOLLARS ONE YEAR AND BE ABLE TO MAKE UP THE DIFFERENCE. SO I DON'T WANT THAT TO BE LOST IN THIS BOARDROOM WITH THE CONVERSATIONS THAT WE'RE HAVING.

I CAN'T IT'S HARD FOR ME TO JUST FLIP A SWITCH AND SPEND, YOU KNOW, A FIFTEEN HUNDRED DOLLARS EMPLOYEES IS TEN MILLION DOLLARS.

IT'S A ONE TIME THING BUT IT'S 10 MILLION BEING GONE FOREVER OUT OF THE GENERAL FUND.

AND WE DON'T HAVE A BUDGET THAT GENERATES IN EXCESS, SO THERE'S NO WAY TO PUT IT BACK.

SO IN THE BUSINESS WORLD, COMPANIES I WORK WITH, WE LOOK AT IT ALL THE TIME.

WE'RE LOOKING AT THE BALANCE SHEETS.

THERE'S THINGS YOU CAN DO TO CREATE CASH.

BUT AS YOU USE UP THOSE ASSETS, YOU RUN OUT OF OPTIONS.

YOU CAN DO IT ONCE OR TWICE, BUT THEN YOU GOT TO STOP.

IT'S A REVENUE THING.

SO TO ME, YOU KNOW, I CAN BE A LOT MORE AGGRESSIVE IF I KNOW HOW TO PAY FOR IT.

THAT'S REALLY MY POINT.

SO WHEN YOU HEAR HESITATION OUT OF ME IT HAS NOTHING TO DO WITH THE VALUE OF THE EMPLOYEES AND THE JOB THEY'VE DONE, WHICH IS UNMATCHED FRONT LINE PEOPLE WHO DON'T GET RECOGNIZED AS BEING FRONT LINE PEOPLE FOR CRYING OUT LOUD.

WE WENT A LONG TIME ASKING THEM TO DO SOME INCREDIBLE THINGS.

SO DO WE FEEL LIKE THEY DESERVE IT? YES, YOU KNOW, HECK, YES.

BUT I STILL HAVE THAT BURNING DESIRE TO WANT TO KNOW HOW I'M GOING TO PAY FOR IT IF I'M GOING TO COMMIT TO IT. AND THAT'S WHY I NEEDED A LITTLE MORE TIME WHETHER IT'S THE RAISE

[01:55:03]

BECAUSE IF WE'RE IN THE PAST WE JUST COVERED IT UP BECAUSE WE ADDED TO THE GENERAL FUND EVERY YEAR. BUT IF THAT'S NOT HAPPENING, WE JUST GET OUR BACK UP AGAINST THE WALL PRETTY QUICK FORCED INTO A TRE.

IT'S VERY UNFORTUNATE THAT OUR TRE DIDN'T PASS.

WE SEE NOW THAT WE'RE THIRD WE'RE THE THIRD LOWEST TAX RATE IN THE COUNTY, BUT WE'RE BEING ASKED TO PROVIDE A VERY ROBUST PROGRAM FOR OUR KIDS.

THE COMMUNITY WANTS IT, BUT THEY DON'T PAY FOR IT, OR AT LEAST IN THE PREVIOUS VOTE, THEY TENDED TO NOT WANT TO PAY FOR IT.

SO THERE'S SOME RECONCILIATION WE'VE GOT TO HAVE HERE WITH OUR DESIRES AN OUR POCKETBOOK.

AND I DON'T KNOW, I JUST TO ME THAT'S WHERE THE RUBBER IS GOING TO HIT THE ROAD, DR.

RINGO, DR. LOPEZ.

AND I HEAR YOU WITH RESPECT TO THE TIMELINE AND YOU MAY BE RIGHT.

I MAY BE SITTING HERE AGAIN IN MAY WITH THE SAME UNEASY FEELINGS AND NOT REALLY MUCH HAS CHANGED. BUT RIGHT NOW, I JUST CAN'T SEE IT.

I JUST CAN'T SEE IT.

AND I WANT TO DO SOMETHING, BUT I CAN'T SEE IT.

I GOT TO PAY FOR IT.

I CAN DO IT ONCE. SO IF THE PLAN IS ALL RIGHT THIS YEAR, WE TAKE IT OUT OF FUND BALANCE, 10, 15 MILLION, WHATEVER IT IS, WE TAKE IT OUT OF FUND BALANCE.

BUT NEXT YEAR OR BY NEXT YEAR, WE'LL HAVE A TRE.

YOU KNOW, IF I COULD FEEL CONFIDENT ABOUT THAT, THEN I KNOW HOW TO PAY FOR IT IN TWENTY THREE AND TWENTY FOUR AND TWENTY FIVE.

BUT WITHOUT THAT OR WITHOUT THE COMMUNITY'S ACCEPTANCE OF THAT AS A GAME PLAN, MAN, I JUST SEE US AND IT GETS TIGHT IN A HURRY.

AND THE ONE TIME MONEY WE'RE TALKING ABOUT FROM THE FED WILL BE GREAT.

I THINK DR. LOPEZ IS RIGHT BUT IF IT WAS FULLY FUNDED THAT WOULD CARRY US FOR A COUPLE OF YEARS. WE CAN KEEP ALL OF OUR ROBUST PROGRAMS EXACTLY WHERE THEY ARE.

WE ALREADY SEE I'M SORRY THIS IS GETTING INTO A COMMENTARY, PROBABLY TOO MUCH, BUT WE ALREADY SEE THE IMPACT IS HAVING WITH THE DISCUSSIONS, THE STAFF AND THE CABINET AND EVERYBODY'S HAVING ABOUT, YOU KNOW, WHERE CAN WE GO SAVE A PENNY.

AND SO FAR WE HAVEN'T TOUCHED PROGRAMS, BUT KIND OF AFTER THIS ROUND IT'S NO LONGER GOING TO BE POSSIBLE. WE'LL HAVE TO START TOUCHING PROGRAMS. AND DR. LOPEZ AND THEM, THEY'VE DONE EXACTLY WHAT WE ASKED THEM TO DO BACK WHEN WE DISCUSSED THE TRE BACK IN, I THINK, JULY, AUGUST, THEY'VE DONE A PROGRAM REVIEW, A PROGRAMMATIC REVIEW OF OUR SYSTEM.

AND YOU SEE THE RESULT.

THERE'S SOME GREAT SAVINGS.

THERE'S SOME GREAT THINGS.

AND SO FAR, IF I TAKE DR.

LOPEZ FOR HIS WORD, IT HASN'T IMPACTED PROGRAMS OR THE KIDS THAT RELY ON THOSE PROGRAMS? I DON'T WANT TO GET US PAINTED INTO A CORNER WHERE WE HAVE TO DO THAT BECAUSE WE DON'T HAVE A FINANCIAL WAY TO FIX IT.

SO OUR ONLY ELECTIVE IS REALLY THE TRE ROUTE.

AND, YOU KNOW, I JUST KIND OF FEEL THAT COMING ON BEFORE BOND ISSUE BEFORE ANYTHING ELSE, WE'VE GOT TO FIX OUR DAY TO DAY.

AND SO THAT'S WHY I HAVE THE UNEASINESS Y'ALL ABOUT VOTING ON RAISES.

I JUST KNOW WHAT EVERY OTHER BUSINESS IS DOING RIGHT NOW.

THEY'RE NOT TALKING ABOUT RAISES.

WE DO NEED TO COMPETE.

AND THERE ARE SOME DISTRICTS WHO HAVE THE LUXURY OF STILL BEING STUCK IN A, YOU KNOW, NINETY FIVE CENTS OR AT A DOLLAR FOUR ON THEIR TAX RATE AND SO THEY CAN PAY FOR IT.

SO OUR REALITY IS WE GOT TO FIX THAT.

THAT WOULD BE MY OPINION.

WE FIX THAT. AND IT'S EASIER FOR ME TO GO ALONG WITH SPENDING THE MONEY.

MS. GRIFFIN. YES.

I THANK YOU, MR. MILLER, FOR YOUR COMMENTS.

AND I UNDERSTAND EVERYTHING THAT YOU ARE SAYING.

AND I THINK THE VISUAL THAT WE'VE SEEN, OF THE CRYSTAL BALL, IF ONLY WE COULD LOOK INTO IT AND KNOW WHAT THE FUTURE HOLDS.

WELL, YOU KNOW, WE BASICALLY YOU KNOW DON'T HAVE THAT.

I THINK WHAT I'M HEARING FROM THE BOARD MEMBERS AND IF I'VE READ THIS WRONG, YOU ALL NEED TO CORRECT ME, IS THAT IT DOESN'T LOOK LIKE WE'RE GOING TO MOVE THAT OFF OF THE AGENDA FOR A VOTE TODAY.

THE VOTE MAY LOOK DIFFERENT FROM WHAT WAS BASICALLY IN THE MATERIALS THAT WE'VE SEEN IN THIS WORKSHOP, AS WELL AS THE PRINTED BOARD BOOK.

BUT THE ONE THING I WANT US TO KEEP IN MIND IS THAT I BELIEVE AND THIS ONE I HOPE I WILL

[02:00:04]

AND SO THAT IS THE IMPACT OF WHAT WE ARE SEEING WITH WHAT THE PROJECTIONS ARE THAT WE ARE LOOKING AT IN OUR BOARD BOOK.

AND WE HAVE TO UNDERSTAND THAT THIS DISTRICT RUNS ON PEOPLE AND WE JUST CAN'T KEEP ASKING PEOPLE TO DO MORE AND NOT RECOGNIZE THEIR EFFORTS.

IT WOULD BE EASY TO SAY BECAUSE OF HOW THE SITUATION LOOKS.

BUT FOR ME, LINDA GRIFFIN, FOR WHAT OUR STAFF ALL SEVENTY FIVE HUNDRED EIGHT THOUSAND, HOWEVER MANY IT IS, THEY HAVE ALL GONE OVER AND ABOVE, BASICALLY THE CALL OF DUTY AND DO I THINK WE WOULD PROBABLY HAVE A MASS EXODUS? NOT NECESSARILY, BUT I JUST THINK WE HAVE TO REWARD EFFORT, YOU KNOW, AND WORK.

SO I CAN'T SEE GOING INTO NEXT YEAR WITHOUT A RAISE TO OUR EMPLOYEES BECAUSE OF WHAT THEY'VE DONE.

THEY'VE KEPT THIS DISTRICT AFLOAT IN DIFFICULT TIMES.

WE'RE ENTERING OUR SECOND SCHOOL YEAR WITH THE UNKNOWNS.

BUT I DO THINK WE ARE GOING TO GET ENOUGH FEDERAL FUNDING, EXTRA FEDERAL FUNDING BASED ON WHAT THE FEDERAL GOVERNMENT SAYS THAT WOULD HELP US COVER WHAT WE ARE BASICALLY PROJECTING FOR NEXT YEAR'S SALARY RAISE.

THE OTHER THING IS THAT WE HAVE OPEN ENROLLMENT.

THAT IS I MEAN, I THINK THERE ARE APPLICATIONS AND ALL OF THOSE THINGS THAT ARE ALREADY IN PROGRESS. AND I JUST THINK THAT THERE ARE SOME WAYS THAT WE ARE GOING TO SEE MAY NOT RECOVER THE WHOLE THOUSAND IN ADA, BUT IT WOULD BE GREAT IF WE COULD.

BUT I REALLY THINK THAT WE'RE GOING TO RECOVER MORE STUDENTS THAN WE HAVE RECOVERED AT THIS POINT. HOUSES ARE STILL BEING BUILT IN GARLAND ROWLETT AND SACHSE.

PEOPLE ARE STILL MOVING IN WITH SCHOOL AGED KIDS.

SO I JUST WANT US TO UNDERSTAND THAT WE HAVE TO REWARD OUR STAFF FOR WHAT THEY'VE DONE DURING THIS DIFFICULT TIME.

AND AGAIN, THAT'S JUST A LINDA GRIFFIN EDITORIAL.

AND SO I'LL STOP.

I WAS JUST GOING TO SAY, GIVEN THE COMMENTS THAT HAVE BEEN MADE, YOU KNOW, MS. GRIFFIN, THANK YOU FOR YOUR COMMENTS AND EVERYBODY ELSE'S COMMENTS.

MR. MILLER, WHERE ARE YOU WITH RESPECT TO BECAUSE YOU REQUESTED MAYBE OR TALKED ABOUT WANTING TO PULL THIS ITEM FROM THE AGENDA, GIVEN THE SORT OF COMMENTS THAT HAVE BEEN MADE IN TERMS OF MAYBE MAINTAINING THE TWO PERCENT RAISE AND THEN TALKING ABOUT AT A LATER POINT IN TIME, MAYBE DOING SOMETHING DIFFERENT AS FAR AS A RETENTION BONUS OR SOMETHING ALONG THOSE LINES, IS THAT SOMETHING THAT YOU CAN BE OK WITH OR WHERE ARE YOU WITH THAT? YOU KNOW, WELL, FIRST OF ALL, DR.

RINGO, LINDA GRIFFIN PROMISED YOU AN EXTRA 10 MILLION DOLLARS DID YOU GO AHEAD AND PUT THAT IN THE BUDGET. MAYBE MORE.

YEAH. OH, YEAH. OKAY.

CALL IT LINDA GRIFFIN MONEY.

YEAH, I WILL CALL IN REPRESENTATIVE ALLRED RIGHT.

YOU KNOW, MR. SELDERS, I WOULD BE THRILLED TO VOTE ON THE RAISE PROPOSITION WHEN IT COMES UP TODAY, IF THAT'S THE DESIRE OF THE COMMITTEE.

I'LL BE HONEST WITH YOU.

YOU KNOW, I WISH IT WAS THREE TO FIVE PERCENT.

YOU KNOW, I WISH WE HAD A WAY TO DO WHAT IS DESERVED.

AND SO BUT I CAN SEE THAT A ONE TIME EVENT LIKE THIS, ONE YEAR OF A TEN TO FIFTEEN MILLION DOLLAR DEFICIT, WE HAVE THE GENERAL FUND TO COVER.

WE DEFINITELY HAVE THE FUNDING, THE FUNDS TO PAY FOR IT.

[02:05:01]

SO I JUST, YOU KNOW, WE'RE KIND OF COMMITTING TO SOMETHING HERE THAT WE HAVE TO GO DO SOMETHING ON THE FUNDING SIDE.

AND I THINK DR.

LOPEZ HAS INTRODUCED WITH OPEN ENROLLMENT AN EXCITING POSSIBILITY.

AND THEN OUR DEMOGRAPHER, HAS STATED THAT HE EXPECTS OUR ENROLLMENT TO START CREEPING UP AS THE NEW HOMES THAT ARE FINISHING UP COME ONLINE.

SO WE HAVE SOME BETTER NEWS COMING.

I JUST DON'T WANT US TO GET THE RUBBERBAND TO TIGHT BEFORE THAT RELIEF COMES.

WITH RESPECT TO WELL, WITH RESPECT TO RAISES, THAT WOULD BE FINE IF YOU WANT TO GO AHEAD.

SOMEBODY WANTS TO DISCUSS THAT LATER.

OK, SOUNDS LIKE WE'RE GOOD.

THAT IT. ARE THERE ANY EXECUTIVE SESSION ITEMS. NOTHING FOR THE EXECUTIVE SESSION? OK, IT'S 5:06 AND THIS MEETING IS ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.