WELL, GOOD AFTERNOON, LADIES AND GENTLEMEN, IT'S NOW 4:04.
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THIS IS A GARLAND INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES SPECIAL MEETING IT'S TUESDAY, FEBRUARY THE 22ND.I NOW CALL THE MEETING TO ORDER AND WE DO HAVE A QUORUM.
THE FIRST PART OF THE MEETING TODAY WILL BE A PUBLIC FORUM.
MS. HOGAN IS THERE ANYONE HERE WHO WISHES TO SPEAK AT THE PUBLIC FORUM? NO, SIR. WE HAVE NO CARDS PRESENTED, SO WE WILL MOVE ON TO ITEM THREE.
[III.A. Budget Workshop]
THIS IS GOING TO BE A WORKSHOP FOR THE BUDGET AND UP TODAY BEFORE US WILL BE A PRESENTATION LED BY DR.MR. MILLER, BOARD OF TRUSTEES, AND DR.
LOPEZ, GOOD TO SEE YOU THIS AFTERNOON, IT WILL BE LED BY ME AND MS. MAYO, OUR DIRECTOR OF BUDGET, AND WE WILL OUR AGENDA FOR TODAY IS TO COVER THE VERY HIGH LEVEL 2021 AND 2022 GENERAL FUND, SNS FUND AND DEBT SERVICE FUND AND WHERE WE'RE AT.
THAT WILL GO FAIRLY QUICKLY BECAUSE YOU SEE THOSE MONTHLY, THEN WE WILL GET INTO THE 2022 2023 GENERAL FUND, STUDENT ATTRITION FUND AND DEBT FUND PROJECTIONS AND WE'LL CLOSE WITH COMMENTS, QUESTIONS.
TO HIGHLIGHT THIS IS ONLY AN HOUR BECAUSE IT IS VERY HIGH LEVEL.
IT'S FEBRUARY, AND AS OF RIGHT NOW, WE DO NOT HAVE OUR TAXABLE PROJECTIONS FOR NEXT YEAR AT THIS TIME. WE'RE STILL WAITING ON TEA ON A COUPLE OF THE FUNDING FORMULA ADJUSTMENTS AS THEY MAKE TWEAKS.
DOUG CARR STATED TO US IN A RECENT TRAINING THAT THE CURRENT NUMBERS FOR NEXT YEAR'S PROJECTIONS DON'T MEAN A THING.
HOWEVER, I'M CONFIDENT WE'RE IN ALIGNMENT OF WHERE WE WILL BE IN RANGE OF AS THESE TEMPLATES GET FIRMED UP.
BUT I WILL GET US ROLLING ON OUR LEGISLATIVE UPDATES.
AS YOU CAN SEE HERE FOR THE CURRENT YEAR, THAT AVERAGE DAILY ATTENDANCE HOLD HARMLESS.
WHAT THAT MEANS WE HAVE SEEN A COVID IMPACT WITH LOWER THAN AVERAGE DAILY ATTENDANCE THAN HISTORICALS.
I THINK WE'RE HAVING A TECHNICAL ISSUE. OH DIFFICULTIES AND I'LL KNOW WHEN TO RESUME SHORTLY.
MR. MILLER, BOARD OF TRUSTEES, THE TECHNICAL ISSUES HAVE BEEN RESOLVED AND WE'VE BEEN TOLD WE GET TO PROCEED.
AS OF RIGHT NOW, WE ONLY KNOW THAT THE FIRST SIX WEEKS THE TEXAS EDUCATION AGENCY IS GRANTING AN ADA HOLD HARMLESS WAIVER.
SO THAT MEANS FOR SECOND, THIRD, FOURTH, FIFTH AND SIXTH SIX WEEKS, THERE WILL AT THIS TIME BE NO WAIVERS.
AND SO IF OUR AVERAGE DAILY ATTENDANCE IS TRENDING LOWER THAN NORMAL, AS YOU WILL SEE IN THIS PRESENTATION RIGHT NOW, THERE IS NO ADDITIONAL SUPPORT FROM THE STATE OF TEXAS AT THIS TIME IN REGARDS TO THAT IN REGARDS TO FUNDING.
ANOTHER ONE SPECIAL SESSIONS THE THIRD CALLED SPECIAL SESSION THIS PAST LEGISLATIVE SESSION WHEN IT ENDED THE MANDATORY HOMESTEAD EXEMPTION IS INCREASED FROM TWENTY FIVE THOUSAND TO FORTY THOUSAND.
THAT DOES IMPACT INS PROJECTIONS ON TAB GROWTH.
FORTUNATELY, WE'VE HAD TYPICALLY DOUBLE DIGIT PERCENT GROWTH IN THIS LAST YEAR, AROUND FIVE PERCENT TAXABLE VALUE GROWTH.
AND SO IT HAS NOT IMPACTED OUR INS PROJECTIONS THAT MUCH.
BUT WE WILL DISCUSS THAT BECAUSE AS OF RIGHT NOW, WITH THIS IMPACT IN THESE CALCULATIONS BEING DETERMINED, WE'RE ABLE TO GIVE AN ESTIMATED RATE OF WHAT OUR MNO WILL BE AND CONFIDENT WE'LL BE IN THAT RANGE AND THAT MAINTAINING THAT SAME INS RATE FOR A FUTURE BOND PROGRAM AT THAT TIME DOES COME AND THERE IS DISCUSSION OF PROVIDING HOLD HARMLESS REVENUE IF A DISTRICT WERE TO BE HURT.
AND THESE ADJUSTMENTS MEANING, LET'S SAY, TAXABLE VALUES WERE TO ACTUALLY DECREASE BECAUSE OF SOMETHING LIKE THIS, THE STATE IS SUPPOSED TO KICK IN ADDITIONAL FUNDING SUPPORT THAT. AND WITH THAT, I'LL TURN IT OVER MS. MAYO TO COVER OUR 2021 2022 GENERAL FUND BUDGET ASSUMPTIONS.
HI, GOOD AFTERNOON, MR. MILLER, BOARD OF TRUSTEES.
I AM GOING TO BRIEFLY GO THROUGH OUR 21 22 BUDGET UPDATE AND THIS IS INFORMATION WE TALK ABOUT EVERY MONTH.
JUST ONE THING I DO WANT TO POINT OUT IS OUR AVERAGE DAILY ATTENDANCE WAS THE BUDGET THIS YEAR WAS BUILT ON 49,906, AND THAT'S LISTED IN THE PRESENTATION.
WHEN WE CAME TO YOU IN OCTOBER AND AS DR.
RINGO JUST MENTIONED, OUR ADA PERCENTAGE RATES WERE SOMEWHAT LOWER THAN WE HAD EXPERIENCED IN HISTORICAL.
SO WITH OUR LOWER ADA, COUPLED WITH OUR DECISION TO MOVE FORWARD WITH VIRTUAL SCHOOL AND AT THAT TIME IT WAS NO NOT FUNDED, BUT WE DID CONTINUE TO MOVE FORWARD FOR THE BEST OF OUR STUDENTS. WE CAME TO YOU IN OCTOBER WITH A LOWER BUDGET PREDICTION AND WE REDUCED OUR STATE REVENUE BASED ON THAT ADA.
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SO ONE THING I WANT TO POINT THAT OUT IS OUR ADA AT FIRST SEMESTER WAS FORTY SEVEN THOUSAND EIGHT EIGHT THREE, SO THAT IS HIGHER THAN WHAT WE BROUGHT TO YOU THAT BUDGET IN OCTOBER. SO THAT'S SOME GOOD NEWS.SO WE'RE GOING TO TALK ABOUT THAT AS WE BRIEFLY GO THROUGH THE 21 22 BUDGET PROJECTIONS AND HOW THAT'S GOING TO AFFECT THE DEFICIT THAT WE'VE BEEN SEEING FROM MONTH TO MONTH.
WE BUILT IT AT A NINETY EIGHT PERCENT COLLECTION RATE, WHICH IS TYPICAL, AND OUR TAXABLE VALUE GROWTH WAS FIVE PERCENT.
SO AS DISCUSSED, ADA PERCENTAGE ATTENDANCE RATES WERE LOWER THAN EXPECTED OUR ENROLLMENT WAS GOOD. WE WERE HAPPY WITH OUR ENROLLMENT.
THEY WERE RIGHT WHERE WE EXPECTED, BUT THAT PERCENTAGE OF ADA WAS MUCH LOWER AND THAT HAS BEEN SOMETHING THAT'S BEEN FELT ALL ACROSS THE STATE OF TEXAS.
CARR SAID, WE CAN'T TRUST THE CURRENT SUMMARY OF FINANCE.
SO THAT'S HAPPENING EVERYWHERE.
OUR STUDENT NUTRITION FUND IMPACT, WE ARE PROJECTED TO HAVE A NET GAIN TO FUND BALANCE IN 21 22. SO WE WANTED TO POINT THAT OUT BECAUSE WE WERE CONCERNED ABOUT THAT LAST FISCAL YEAR DUE TO THE FREE MEALS ACROSS THE BOARD FROM THE USDA THAT HAS REALLY HELPED OUR MEAL SERVICE AND OUR STUDENT NUTRITION TEAM HAS DONE A FANTASTIC JOB SERVING OUR STUDENTS.
I KNOW WE WERE CONCERNED ABOUT THAT AFFECTING THE GENERAL FUND.
AS OF NOW, THERE ARE FUND BALANCE AT THE END OF LAST FISCAL YEAR WAS ABOUT SEVEN HUNDRED AND TWO THOUSAND.
THEY ARE PROJECTED TO MAINTAIN THAT FUND BALANCE, BUT THAT WILL DEPEND ON THEIR SPRING EVENTS. BUT I KNOW THAT YOU SEE THOSE EVENTS IN THE BOARD INSIGHT AND SO THEY THINK THINGS ARE GOING TO MAINTAIN STABILITY THERE AND WE CONTINUE TO HAVE OUR COVID IMPACT, WE ARE STILL SEEING LOWER THAN REGULAR ATTENDANCE RATES, LARGER THAN AVERAGE VACANCY RATES, WHICH WE'RE GOING TO DISCUSS.
AND THEN WITH THAT LOW, THE HIGH VACANCY RATES CREATES LARGER THAN AVERAGE OVERTIME EXPENDITURES. THESE ARE THE GENERAL FUND REDUCTIONS BY DIVISION THAT ARE REFLECTED IN THE 21 22 BUDGET.
WE DID PRESENT THIS TO LAST YEAR, BUT WE JUST WANTED TO REMIND YOU ALL THE DEPARTMENTS CONTRIBUTED TO A REDUCTION IN OUR BUDGET AS A [INAUDIBLE].
THESE ARE OUR 21 22 VACANCIES BY JOB TYPE.
AND AS YOU CAN SEE THAT BECAUSE OUR STUDENT ATTRITION POOLS ARE IN THAT AUXILIARY LINE, THAT IS HIGHER THAN OUR AVERAGE VACANCIES FROM LAST YEAR.
APPROXIMATELY FIVE HUNDRED AND TWENTY FROM THIS ARE GENERAL FUNDS, SO ABOUT SEVENTY SEVEN PERCENT. THESE ARE OUR GENERAL FUND BUDGET RECOMMENDATIONS THAT WERE ADDED TO THE BUDGET LAST YEAR.
THESE ARE OUR PROPERTY TAX RATES THAT YOU CAN SEE THAT WE BUILT THIS FISCAL YEAR'S BUDGET ON.
THE PROPERTY TAX RATE THAT WE'RE SHOWING NOW HAS BEEN THE LOWEST SINCE 2014.
SO AND THEN WE HAVE CONTINUED TO REDUCE THAT OVER THE LAST FOUR YEARS.
AND THESE ARE OUR PROPERTY TAX RATES BY DISTRICT.
SO THESE WERE POOLED RECENTLY FROM THE DALLAS COUNTY APPRAISAL DISTRICT.
WE PULLED THESE ABOUT A WEEK AND A HALF AGO, BUT AS OF YESTERDAY, THERE WAS ONE MINOR CHANGE HIGHLAND PARK ISD WENT FROM WAS ADJUSTED FROM 1.17 TO 1.14.
BUT THESE ARE THE MOST RECENT RATES, AS PRESENTED BY THE DALLAS COUNTY APPRAISAL DISTRICT. AND YOU CAN SEE THE HIGHLIGHTED DISTRICTS WHERE A TRE HAS BEEN PASSED AND YOU CAN SEE THAT WE ARE ONE OF THE FEW THAT HAS NOT.
THIS IS OUR ENROLLMENT HISTORY FROM FALL 2010 TO 2021, SO THIS WAS PRESENTED TO YOU IN THE DEMOGRAPHICS UPDATE BACK IN THE WINTER PRESENTATION.
AND THEN THIS SHOWS THE ENROLLMENT CHANGE YEAR OVER YEAR.
SO ONE THING THAT THIS IS SHOWING US AND THAT WE'VE SEEN, COUPLED WITH THE DEMOGRAPHICS REPORT AND DR.
RINGO IS GOING TO TALK A LITTLE BIT ABOUT THE ECONOMY IS WE DO ARE HOPEFUL THAT OUR ENROLLMENT CHANGES ARE GOING TO LEVEL OUT AND THAT WE WILL NOT BE SEEING SUCH DECLINES IN OUR ENROLLMENT. AND THAT'S GOOD NEWS AND THAT'S BEEN GOING TO BE REFLECTED IN OUR BUDGET FOR NEXT YEAR IN OUR FUTURE PROJECTIONS.
SO THIS IS OUR AVERAGE DAILY ATTENDANCE.
YOU CAN SEE THAT OUR FIRST SIX WEEKS OF THIS YEAR, IT'S JUST NOT EVEN PRESENT ON THE CHART. IT'S MUCH LOWER. IT'S ABOUT FORTY SIX FOUR THERE.
THE REST OF THE FIFTH AND SIX WEEKS IN THE END OF THE FOUR SIX WEEKS WAS AT THE TIME OF THIS PRESENTATION WAS BASED ON HISTORICAL VALUES.
BUT YOU CAN SEE THAT GAP IS MUCH LOWER BECAUSE OF THE ADA PERCENTAGES.
YES, SIR. AND JUST TO HIGHLIGHT, SOMEBODY MAY ASK WHY IS 2020 STOP HALFWAY THROUGH THE YEAR? THAT GOLD LINE THAT IS WHEN COVID HIT AND DISTRICTS SHUT DOWN THE REST OF THAT YEAR AND THE STATE SAID, WE WILL GIVE YOU AN AVERAGE DAILY ATTENDANCE RATE BASED OFF YOUR
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PRIOR FOUR SIX WEEKS, FOUR SIX, SIX WEEKS.AND SO JUST FOR CONFIRMATION, THAT IS WHY THAT GOLD LINE DOES STOP THERE.
THANK YOU DR. RINGO FOR POINTING THAT OUT.
THERE WERE NO ADA COUNTS AFTER THAT IN THE FIRST YEAR OF COVID.
THIS IS THE GENERAL FUND BUDGET.
THIS IS THE ADOPTED BUDGET THAT YOU AS A BOARD APPROVED STARTING AT THE BEGINNING OF FEBRUARY. THIS WAS THE JANUARY AMENDMENT.
AND SO ONE THING I WANTED TO POINT OUT JUST QUICKLY IS WE'RE LOOKING AT THIS $40 MILLION DEFICIT. AND SO THERE'S A COUPLE OF THINGS AT PLAY HERE.
THIS BUDGET AND THE BUDGET THAT WE ADOPT IS BASED ON FULL, FULLY STAFFED.
WHEN WE'RE SHOWING ABOUT FIVE HUNDRED VACANCIES ON AVERAGE, THAT'S GOING TO ATTRIBUTE SOME SAVINGS BACK TO THIS.
AND NOW, WHILE HAVING THAT MANY SAVINGS IS UNCOMFORTABLE FOR OUR DISTRICT AND IT DOES POSE A LOT OF PROBLEMS, IT WILL BRING SAVINGS BACK TO MITIGATE THIS DEFICIT BUDGET HERE.
AND THEN ANY INCREASE IN ADA IS GOING TO FURTHER IMPACT POSITIVELY THAT STATE NUMBER.
AND SO WHILE WE DO EXPECT TO SEE A DEFICIT BUDGET, WE DO NOT EXPECT IT TO BE IN THE $40 MILLION RANGE. AND SO WE WILL KEEP YOU UPDATED WITH EVERYTHING WE LEARN.
WE'RE GOING TO TALK ABOUT SOME THINGS WE DON'T YET KNOW THAT COULD ALSO AFFECT THAT IN A POSITIVE WAY. SO WE'LL BE SURE TO BRING THAT COMMUNICATION TO YOU AND I'LL PASS IT BACK TO DR. RINGO.
IN THE TEXAS ECONOMY WHILE WE INCLUDE THAT IN THIS PRESENTATION IS IF THE ECONOMY IS DOING WELL LOCALLY AND AT STATE LEVEL, WE DO NOT FORESEE THE STATE CUTTING US AT ANY LEVEL.
ALSO, IF WE'RE DOING WELL AT THE LOCAL LEVEL, THAT DOES IMPACT OUR COMPRESSED RATE CALCULATIONS BECAUSE AS LONG AS WE HAVE TAXABLE VALUE GROWTH OVER TWO AND A HALF PERCENT, WE SHOULD BE ABLE TO COMPRESS OUR TAX RATE.
AND SO AS YOU CAN SEE, THE TEXAS ECONOMY, YOU CAN SEE AS OF AUGUST OF 21 THIS YEAR, IT IS PERFORMING VERY WELL AND VERY STRONG TEXAS AND COMPARED TO THE U.S.
EVEN SO, YOU CAN SEE THE TEXAS JOB GROWTH DOES REMAIN STRONG THIS YEAR.
HERE YOU CAN SEE WAGES AND PRICES.
AND SO WAGES AND BENEFITS IN RED, PRICES IN BLUE.
WE'RE EXPERIENCING AND SEEING INFLATION AS EVERYONE IS INDIVIDUALLY, PERSONALLY AND WITH BUSINESSES. WE HAD A PRESENTATION LAST MONTH WITH PBK THAT SHOWED THE INFLATION IMPACT WITH OUR LONG RANGE FACILITIES CONDITION ASSESSMENT.
AND SO THERE ARE RAISING WAGES AND RAISING PRICES IN THE TEXAS ECONOMY.
THE NOW WE'RE GETTING MORE TO THE LOCAL LEVEL.
THE DFW ANNUAL EMPLOYMENT GROWTH.
YOU CAN SEE WHERE IT RECOVERED AFTER, I GUESS, THE FIRST HIT OF COVID IN 2020 AND EXCEEDING PRIOR YEARS AND EVEN PRIOR TO THE 2008 RECESSION LEVELS.
AND SO LOCALLY, THE EMPLOYMENT GROWTH IN THE DFW METROPLEX IS BOOMING.
THE UNEMPLOYMENT SIDE OF THINGS YOU CAN ALSO SEE HERE WHAT HAPPENED IN 2020.
THERE WAS A SKYROCKET IN UNEMPLOYMENT AND NOW AS WE'VE PROGRESSED THROUGH COVID AND OPENING BACK UP, THAT HAS BEEN MITIGATED AND BACK BELOW THE 2009 2010 LEVELS AND NOW WE'RE AT THE LOCAL LEVEL.
SO WITH THIS NEW HOME CLOSING FORECAST AND THIS IS UNDER COVID OPERATIONS, WE DO FORESEE OUR STUDENT ENROLLMENT LEVELING THAT IS POSITIVE WITH OUR BUDGET BECAUSE HISTORICALLY WE'VE SHOWED A DECLINE AND DECLINING ENROLLMENT MEANS DECLINING AVERAGE DAILY ATTENDANCE.
AND SO WITH THESE HOME CLOSINGS AND FORECASTS OF WHAT'S UPCOMING IN THE FUTURE YEARS, WE HOPE TO SEE NOT ONLY LEVELING BUT ACTUALLY SEE STUDENT ENROLLMENT GROWTH THROUGH THE COMING YEARS.
AND YOU WILL SEE THAT IN OUR BUDGET IMPACT FOR THE 22 23 PROJECTIONS AND BEYOND.
AND JUST A REMINDER, WE ARE ON A JULY ONE FISCAL YEAR START DATE.
SO THIS IS OUR FIRST WORKSHOP AS WE LEAD UP TO OUR BUDGET ADOPTION IN JUNE AND WE'LL HAVE WORKSHOPS EACH MONTH MOVING FORWARD WITH OUR GOAL OF WHAT WE PRESENT IN MAY IS WHAT ADOPTED IS WHAT IS ADOPTED IN JUNE.
THAT WAY, JULY ONE OPERATIONS DO START.
PRINCIPALS CAN SPEND MONEY FOR NEXT SCHOOL YEAR TO ORDER WHAT THEY NEED.
THE NEW CONTRACT YEAR STARTS AND WE WOULD ADOPT OUR TAX RATE IN AUGUST AFTER OUR CERTIFIED ROLL IS RECEIVED AND THAT CERTIFIED ROLL WITH A POSITIVE ECONOMY LOCALLY AND AT THE STATE LEVEL. THAT'S WHERE THAT HAS AN IMPACT OUR INS TAX RATE AND HOPEFULLY WITH COMPRESSION ON OUR MNO TAX RATE, THAT COMPRESSION MEANS THAT THAT MNO RATE WOULD ACTUALLY BE LOWERED. AND WITH THAT, I'LL TURN IT BACK OVER TO MS. MAYO. THANK YOU, DR.
RINGO. SO AS WE GO THROUGH THE PROCESS, WE ARE REQUIRED TO POST OUR BUDGET AND PROPOSED TAX RATE BEFORE OUR CERTIFIED VALUES ARE KNOWN.
SO THAT WAS WITH THE CHANGE OF CURRENT YEAR VALUES BACK IN HOUSE BILL THREE AND THEN ALLOWED TO ADOPT AT A RATE THAT IS LOWER.
WHICH IS WHY WHEN WE COME TO YOU IN JUNE, WE MIGHT LIKELY ASK FOR US TO PUBLISH AND POST
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AT A RATE HIGHER THAN WE ACTUALLY INTEND TO ADOPT, JUST SO WE CAN AVOID THAT REPOSTING.IT'S THE SAME PRACTICE WE'VE DONE FOR THE LAST TWO YEARS, SO WE'LL VERY CLOSELY EXPLAIN THAT AND DISCUSS THAT AT THE TIME.
RIGHT NOW, WE ARE PROPOSING OUR BUDGET TO BE CLOSE TO FULLY OPERATIONAL IN FY 23.
AND ALL THAT REALLY MEANS IS THAT WE'RE STILL MONITORING SOME OF OUR LOCAL REVENUE SOURCES TO MAKE SURE THAT WE'RE GOING TO BE IN LINE.
IF WE DO SEE TICKET SALES GETTING BACK TO NORMAL IN SOME OF OUR AREAS, WE WILL COME BACK TO THE BOARD AND INCREASE THOSE VALUES AS WE MOVE THROUGH THE YEAR.
TAXABLE ASSESSED VALUE GROWTH FIVE PERCENT.
WE HAVE NOT HAD AN OPPORTUNITY TO MEET WITH DCAD YET THAT COMES IN APRIL AND SO THAT FIVE PERCENT GROWTH COULD CHANGE.
WHAT WE DO FEEL CONFIDENT WITH THAT AT THIS TIME, OUR MNO TAX RATE IS 0.9384 AND DOES INCLUDE THE FIFTH GOLDEN PENNY.
AND THEN ONE THING THAT YOU WILL SEE IN THIS PRESENTATION IS WE KIND OF HAVE DONE A WORSE AVERAGE AND BEST CASE SCENARIO JUST SO THAT YOU CAN SEE WHILE OUR DEMOGRAPHICS, INFORMATION AND SOME OF OUR ENROLLMENT DATA THAT WE HAVE DOES PREDICT THAT OUR ENROLLMENT MAY HAVE FLATTENED OUT AND WE ARE HOPEFUL FOR THAT.
WE DO ALSO WANT TO SHARE WITH YOU WHAT IT WOULD LOOK LIKE IF WE HAD A DECLINE OF FOUR HUNDRED STUDENTS IN ADA OR AN INCREASE OF STUDENTS IN ADA FOUR HUNDRED.
IN SOME OF OUR UNKNOWNS THAT WE WE'RE STILL MAINTAINING THE SAME TEACHER INCENTIVE ALLOTMENT BUDGET THAT WE HAD EXPECTED.
THAT'S A DIRECT REVENUE AND EXPENSE OFFSET.
SO THAT WON'T AFFECT THE FUND BALANCE AT THE TIME.
BUT ONCE WE HAVE MORE INFORMATION, WE'LL SHARE THAT WITH YOU.
AND THEN TWO THINGS THAT ARE GOING TO AFFECT OUR BUDGET PLANNING FOR NEXT YEAR AND THEN ALSO POSSIBLY AFFECT OUR BUDGET FIGURES FOR THIS YEAR IS WE STILL DO NOT HAVE FINAL CCMR DATA FOR THIS CURRENT YEAR.
SO IF OUR CCMR DATA DOES SLIGHTLY INCREASE, THAT DOES ACCOUNT FOR ADDITIONAL REVENUE FOR OUR STATE BUDGET AND WE HAVE NOT RECEIVED COMPENSATORY EDUCATION CENSUS DATA.
SO TYPICALLY TEA HAS RELEASED THAT INFORMATION TO US, BUT THEY HAVE HAD A BACKLOG WITH SOME OF THEIR CENSUS INFORMATION AND SO IT HAS DELAYED THOSE NUMBERS.
AND SO AS SOON AS WE GET THOSE INFORMATION, WE'LL BE SHARING THAT OUT WITH THE BOARD.
PROJECTIONS ARE SUBJECT TO CHANGE WITH UPDATED GUIDANCE FROM TEA AND ANY ADDITIONAL COVID IMPACTS. THE 22 23 BUDGET DOESN'T INCLUDE FLEET REPLACEMENT FOR TRANSPORTATION.
IT'S ABOUT THREE MILLION PER YEAR.
HISTORICALLY, THE PROCESS HAS BEEN TO REVIEW THAT AND THEN TO TAKE IT OUT OF FUND BALANCE IF IT'S DETERMINED THAT THAT IS GOING TO BE AN APPROVED EXPENSE.
SO PLEASE KEEP IN MIND WHEN WE LOOK AT OUR EXPENSES, THERE IS A NEED FOR SOME TRANSPORTATION FLEET REPLACEMENT AND THEN THERE IS DOES NOT INCLUDE GPS BUS TRACKING, AND SO THAT WILL BE LIKELY COMING BACK AS A RECOMMENDATION ITEM IN THE FUTURE.
WE JUST WANT TO REMIND YOU THAT SHARS AND INTEREST INCOME PROJECTIONS CONTINUE TO BE ACCOUNTED FOR.
WE DID REDUCE OUR INTEREST INCOME FROM LAST YEAR DUE TO THE RATES CHANGING, AND WE HAVE MAINTAINED THAT, WE'LL CONTINUE TO MONITOR THAT AS WELL.
WE DO EXPECT SOME REVENUE FLUCTUATIONS AND INCREASE WEIGHTED STUDENT POPULATIONS HAVE OFFSET SOME OF OUR ADA LOSS.
SO SOME OF OUR STUDENT POPULATIONS, WHEN WE'RE TALKING ABOUT THAT COULD BE OUR CCMR INCREASING OUR CENSUS BLOCK DATA, DYSLEXIA, STUDENTS OF THAT NATURE, WE HAVE GAINED BACK THOSE POPULATIONS THAT WE SAW A LITTLE BIT OF A DECLINE LAST YEAR AND BECAUSE THEY ARE WEIGHTED HIGHER, THEY DO OFFSET SOME OF OUR LOSS.
AND THEN WE ALSO WANT TO MENTION OUR AGING BUILDINGS.
RIGHT NOW, WE JUST HAVE A BILL, A BULLET POINT, BUT HOPEFULLY IN A FUTURE BUDGET PRESENTATION, MAINTENANCE HAS BEEN WORKING WITH EMA PROFESSIONAL SERVICES ENGINEERING TEAM, AND THEY'RE CREATING A PRIORITY ONE LIST OF MECHANICAL EQUIPMENT THAT HAS OUTLIVED ITS LIFE CYCLE AND THAT COULD FAIL IN ONE TO THREE YEARS.
SO WE WANT TO BRING THAT BACK AS TRANSPARENCY TO THE BOARD.
SO WE'RE REALLY HOPING TO HAVE THAT REVIEW AND DATA CONCLUDED BY NEXT MONTH.
THIS IS A HISTORICAL PRESENTATION OF OUR RAISE HISTORY.
SO YOU CAN SEE IN 19 20, WE DID ABOUT 12.8 MILLION DOLLARS.
THAT WAS IN EFFECT OF HOUSE BILL THREE, 2021 WE DID A ONE TIME PAYMENT IN A MID-POINT PAYMENT OF 1.4.
WE DID PROJECT TO HAVE A DEFICIT BUDGET IN THAT YEAR AND WE WERE ABLE TO STILL COME BACK WITH THE RAISE AND THEN IN 21 22 LAST YEAR, WE WERE ABLE TO SUPPORT OUR STAFF WITH AN INVESTMENT OF 22.3 MILLION DOLLARS.
THIS IS A BRIEF REFLECTION OF OUR FUND BALANCE HISTORY, SO WE JUST KIND OF WANT TO SHARE WITH YOU KIND OF WHAT WE'VE BEEN SEEING.
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WE'VE HAD A KIND OF A WILD THREE YEARS, SO IN 18 19 WE CHANGED OUR FISCAL YEAR AND IN THAT YEAR WE HAD ABOUT A 36.4 MILLION DOLLAR ADD TO FUND BALANCE, AND THAT WAS DIRECTLY DUE TO THE TWO LESS MONTHS OF OPERATIONS.IN 19 20, WE HAD A HOUSE BILL FUNDING INCREASE.
HOUSE BILL THREE DID INCREASE OUR FUNDING AND WE HAD THAT AND THEN ALSO IN THE HOUSE BILL THREE YEAR WHEN THAT BECAME TO TAKE EFFECT, THAT WAS OUR FIRST YEAR OF COVID.
AND WHEN WE CAME BACK FROM SPRING BREAK OPERATIONS WERE SHUT DOWN FOR THOSE LAST FEW GRADING PERIODS, THEIR PURCHASING WAS SHUT DOWN.
EVERYTHING WAS SHUT DOWN AS FAR AS EXPENDITURES OF THAT NATURE GO.
SO THERE WERE SOME SAVINGS THERE AND THEN WE HAD SOME OPERATIONAL SAVINGS LAST YEAR.
WE DID HAVE SOME NON PAYROLL SAVINGS.
MOST OF IT WAS DUE TO OUR HIGH VACANCY RATE AND WE HAD SOME PAYROLL SAVINGS THERE, BUT IT WAS OUR LOWEST FUND BALANCE ADDED OVER 10 YEARS.
SO JUST KIND OF TO REMIND YOU OF OUR POTENTIAL FUND BALANCE UPDATES, IT COULD AFFECT OUR FIRST RATING. THREE YEAR CHANGE IN FUND BALANCES IS MEASURED IN OUR FIRST RATING.
THE GENERAL FUND REVENUES EQUAL OR EXCEED EXPENDITURES AND THEN IMPACT ON OUR CREDIT RATING FOR FUTURE INVESTMENTS.
THESE ARE OUR CURRENT GENERAL FUND RECOMMENDATIONS.
SO YOU CAN SEE HERE WE ARE REMOVING A MILLION DOLLARS FROM THE COVID CLEANING, SO WE ARE STARTING TO COME OUT OF THE WOODS THERE.
INTERCESSION IS BEING REMOVED FROM THE BUDGET AT THIS TIME AND THEN THAT HAS AN IMPACT.
WE ARE ADDING PRE-K EXPANSION, WHICH I KNOW IT'S BEEN PRESENTED HERE IN [INAUDIBLE] COLLEGE FOR ALL IS LISTED HERE.
THAT'S AN ONGOING GROWTH OF IT'S A GROWTH OF AN ONGOING PROGRAM.
SO SORRY, THAT WAS ONE OF TWO YEAR INCREASES.
WE SAW THE FIRST ONE LAST YEAR AND THEN THIS ONE AND THEN OUR TRS INCREASE, WHICH IS GOING ON WITH THE SCHEDULED STATE INCREASES.
BUT HAPPY TO SHOW THAT DUE TO PROGRAM REVIEW AND CHANGES THAT WE AT THIS POINT ARE NOT ADDING, WE ARE TAKING SEVEN HUNDRED THOUSAND DOLLARS FROM THE BUDGET, BUT WE DO.
THERE ARE SOME CURRENT NEEDS COMING AND WE PROBABLY WILL SEE SOME CHANGES TO THIS SHEET.
AND JUST KEEP IN MIND, THAT DOESN'T INCLUDE THINGS LIKE TRANSPORTATION, AGING BUILDING, THESE ARE RAISES. SO HERE'S OUR GENERAL FUND SCENARIO.
SO WHEN WE CAME TO YOU IN OCTOBER, WE BUILT THE BUDGET ON [INAUDIBLE] OR WHEN WE AMENDED THE BUDGET IN OCTOBER FOR THE SNAPSHOT, WE WERE ABOUT FORTY SIX THOUSAND EIGHT HUNDRED.
SO THAT'S ABOUT A THOUSAND STUDENTS LESS THAN WHERE WE ARE NOW.
SO WE DO EXPECT TO GAIN SOME STATE DOLLARS THERE AS WE WERE ABLE TO REFLECT OUR INCREASE IN REVENUE. WE DID HAVE A LOWER START TO JANUARY, AS SOME OF YOU MAY EXPECT, AND THEN WE'LL BE ABLE TO START TO KNOW MORE ABOUT THAT AS WE GET THOSE FIGURES IN AND EVERYTHING IS ANNOUNCED ANALYZED.
22 23, WE ARE EXPECTING A FIVE PERCENT GROWTH.
YOU CAN SEE THE LOSS OF FOUR HUNDRED ADA THE NO ADA CHANGE AND THE GAIN OF FOUR HUNDRED ADA. AND YOU CAN SEE THE EXPENDITURE SUMMARY.
WE HAVE BEEN ABLE TO REDUCE SOME EXPENDITURES THERE, TAKING OUT OUR ONE TIME EXPENSES FROM LAST YEAR AND THEN DOING SOME PROGRAM REVIEW TO REDUCE THOSE PROGRAMS. AND THEN WE HAVE ABLE TO LOWER THE GAP IN OUR REVENUE AND EXCESS SHORT OF EXPENDITURES.
THIS IS OUR REVENUE BREAKDOWN.
IT'S JUST KIND OF SHOWS YOU THE SEESAW EFFECT AS STATE REVENUE AS LOCAL REVENUE INCREASES, STATE REVENUE DECREASES WITH NO REAL NEW MONEY.
SO EVEN THOUGH WE ARE SEEING A FIVE PERCENT GAIN IN OUR TAXABLE VALUES, WE ARE NOT SEEING ANY NEW MONEY.
THE ONLY WAY THAT THE SCHOOL DISTRICT CAN OR ANY SCHOOL DISTRICT IN TEXAS CAN GENERATE ADDITIONAL REVENUE IS ADDITIONAL ADA AND AN INCREASE IN TAX RATE.
THIS IS OUR CURRENT PAYROLL VERSUS NON PAYROLL.
WE ARE ABOUT IN LINE IS EXACTLY AS WE WERE LAST YEAR AND THE PRIOR YEAR.
AND THEN THESE ARE A COMPARISON OF THREE YEARS.
23 24 DOES HAVE AN INCREASE OF ABOUT $10 MILLION FOR SOME NON PAYROLL EXPENSES FOR A ONE TO ONE REFRESH.
THIS IS A CHART WE'VE SHARED BEFORE.
WE HAVE UPDATED IT. THIS IS JUST FOR YOUR INFORMATION, ADMINISTRATION IS NOT NECESSARILY RECOMMENDING THIS AT THE TIME, BUT WE JUST WANTED TO MAKE SURE WE'RE PROVIDING IT FOR YOUR INFORMATION.
THE ADDITIONAL GOLDEN AND COPPER PENNIES THAT COULD BE ACHIEVED, THIS IS THE BREAKDOWN ON LOCAL REVENUE GENERATED IN ANY ADDITIONAL STATE REVENUE DOLLARS.
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THIS IS THE PER PENNY IMPACT TO SHOW, AND WE CAN SEE ABOUT A $40 MILLION, $49 MILLION IMPACT ANNUALLY IF WE WERE TO GAIN ALL OF THE PENNIES.AND THEN THIS IS JUST AN IMPACT EXAMPLE THAT SHOWS YOU WHAT THE RATE WOULD BE IF WE GAINED ALL THE PENNIES TO 1.0584.
BUT PLEASE KEEP IN MIND THERE'S NO REDUCTION OF INS IN THIS EXAMPLE, AND THAT'S CERTAINLY AN OPTION AS WE REVIEWED THAT IN OUR LAST DISCUSSIONS.
THIS IS A PER PENNY IMPACT ON THE TWO HUNDRED AND FIFTEEN THOUSAND DOLLARS HOME.
SO AS DR. RINGO MENTIONED BEFORE, WE'RE GOING TO HAVE ON THE BALLOT IN MAY, A PROPOSITION FOR A 40K HOMESTEAD EXEMPTION AND EVERYTHING WE'VE BEEN HEARING IS THAT IT'S VERY LIKELY TO PASS BECAUSE MOST TAXPAYERS WILL VOTE FOR A TAX DECREASE.
JUST INFORMATION THAT YOU ALL KNOW TAX RATIFICATION ELECTION.
ONE THING TO KIND OF POINT OUT HERE IS THAT WE WERE ABLE TO NOT HAVE TO DO THE EFFICIENCY AUDIT BEFORE BECAUSE WE HAD A STATE OF EMERGENCY, WELL ON FEBRUARY 12 WE DID HAVE A STATE OF DISASTER AGAIN DUE TO ALL TEXAS COUNTIES DUE TO SEVERE WEATHER, AND THERE HAS BEEN A STATE OF EMERGENCY FOR 17 COUNTIES IN OUR AREA AND WE ARE INCLUDED FOR THIS FISCAL YEAR.
SO THAT BUYS US ANOTHER TWO YEARS.
SO THAT'S GOOD. I MEAN, NOT GREAT TO HAVE A STATE OF EMERGENCY, GREAT FOR EFFICIENCY AUDITS. STUDENT NUTRITION SERVICES IS ROLLING ALONG.
WE DON'T EXPECT ANY FUTURE CHANGES.
THIS IS OUR DEBT SERVICE BUDGET IF AN INS WRITE UP 0.3179, THIS DOES GENERATE ABOUT A 14 MILLION DOLLAR INCREASE TO FUND BALANCE THERE.
THESE ARE OUR NET PRINCIPAL AND INTEREST PAYMENTS FOR FISCAL YEAR 23.
AND THEN THIS IS A BOND ELECTION CALENDAR JUST FOR SOME INFORMATION.
THIS DOES ALSO APPLY TO IF YOU'RE IF THERE IS A TAVR, VATRE CONSIDERED HERE AND THEN CURRENTLY IMPLEMENTED IN NEXT STEPS.
SO BACK IN 20, WE IMPLEMENTED OUR 12 PERCENT REDUCTIONS AND THEY HAVE CONTINUED INTO THIS YEAR. SO WE ARE BUILDING THE BUDGET FOR FISCAL YEAR 22 23 WITH A CONTINUING THE 12 PERCENT REDUCTIONS THAT WE TOOK BEFORE.
WE ARE NOT INITIATING RESTRICTIONS AT THIS TIME.
SO PRIOR WE HAD RESTRICTIONS FOR TRAVEL AND FOOD AND THINGS OF THAT NATURE.
THOSE RESTRICTIONS HAVE BEEN LIFTED, BUT OUR CAMPUSES AND DEPARTMENTS ARE STILL EXPERIENCING 12 PERCENT REDUCTIONS.
RECOMMENDATIONS FOR BUDGET INCREASES ARE CURRENTLY UNDER REVIEW.
RAISES, STIPENDS, THINGS OF THAT NATURE, ADDITIONAL PROGRAMS, TRANSPORTATION FLEET PURCHASES. WE'RE FINALIZING THOSE FIGURES TO BRING TO YOU.
AND THEN, LIKE WE MENTIONED BEFORE, THOSE PRIORITY ONE MECHANICAL NEEDS FOR OUR AGING BUILDING NEEDS.
AND SO OUR CURRICULUM DEPARTMENT DOES REGULAR ANALYSIS AND PROGRAM REVIEWS ON OUR PROGRAMS, AND WE ARE CONSTANTLY ANALYZING AND REVIEWING OUR OPERATIONS HERE.
AND MORE ANALYSIS IS TO COME AND WE WE'LL BRING IT TO YOU AS SOON AS WE GET IT.
OUR FOCUS IS TO MEET THE FINANCIAL NEEDS OF THE DISTRICT, BUT WITH LOW IMPACT TO PROGRAMS. THESE ARE OUR NEXT STEPS, SO WE ARE ABOUT TO BE IN MARCH.
SO WE WILL BE OPENING UP OUR BUDGET SYSTEM FOR OUR DISTRICT TO START BUILDING THEIR BUDGETS AND ENTERING EVERYTHING.
WE'RE GOING TO GET OUR DCAD RELEASE AND OUR INITIAL PROJECTIONS.
SO THAT STARTS TO FIRM THINGS UP FOR US.
WE'LL GET OUR CCMR FUNDING FOR THE YEAR THAT WE'RE IN.
IT'LL HELP US FOR FUTURE PLANNING FOR NEXT YEAR.
REVENUE ESTIMATES WE'LL BE ABLE TO BASE THOSE ON ACTUAL PRELIMINARY VALUES FROM DCAD.
AND THEN IN JUNE, WE'RE GOING TO COME TO YOU TO ADOPT OUR BUDGET.
AND THEN IN JULY, THE BUDGET WILL BE AVAILABLE FOR CAMPUSES.
AND THEN IN AUGUST, WE'RE GOING TO RECEIVE OUR CERTIFIED VALUES AND WE WILL COME BACK TO YOU TO CONSIDER TAX RATES FOR ADOPTION.
AND I ALWAYS LIKE TO PROVIDE THIS VISUAL OF OUR DOLLAR BREAKDOWN, SO EVERY DOLLAR THAT LEAVES THE DISTRICT IN EXPENDITURE AND HOW THAT BREAKS OUT, YOU CAN SEE TYPICALLY EIGHTY FIVE PERCENT FOR GARLAND 85 PERCENT GOES TO PAYROLL, AT LEAST 15 PERCENT FOR NON PAYROLL, OUR UTILITIES, ROUGHLY THREE PERCENT OF THAT.
SO THAT LEAVES NINE PERCENT FOR ALL OTHER NEEDS, FROM CLASSROOM SUPPLIES TO TRAVEL.
ANYTHING ELSE THAT MAY BE OUT THERE THAT'S A NEED FOR A CAMPUS OR DEPARTMENT.
AND TO ALSO JUST REITERATE THIS WITH THIS VISUAL TEXAS AT A GLANCE, AS WE HAVE SEEN IN THE HISTORY EVEN BEFORE HOUSE BILL THREE AND BEFORE THE OTHER BILLS THAT ADDRESS FUNDING THE MODEL IN TEXAS HAS BEEN AS WE PAY MORE IN PROPERTY TAXES THAT STATE CUTS THE SAME AMOUNT IN FUNDING FROM THE BUDGET.
THAT IS THE MODEL THAT'S IN PLACE NOW.
[00:30:02]
THERE IS, UNFORTUNATELY, THE CURRENT MODEL.THERE IS NO NEW REVENUE WITHIN TEXAS PUBLIC SCHOOL DISTRICTS.
NOW THE STATE, WITH ALL THE STUDENTS MOVING IN TO THE STATE OF TEXAS AND ACROSS THE STATE, THAT HAS INCREASED SOME OF THE BUDGET FOR THE STATE, BUT IT'S NOT DUE TO FUNDING MORE PER STUDENT.
ON THE FEDERAL SIDE THIS IS AN EXAMPLE.
IT'S NOT ALWAYS THE CASE WITH FEDERAL FUNDS, BUT WE SAW THIS WITH OUR ESSER ONE OUR CARES ONE. THEY TRIED TO DO THIS SOMEWHAT WITH ESSER TWO, AND OUR ADA HOLD HARMLESS FOR GARLAND ISD DID NOT IMPACT US AND IT WAS PREVENTED FOR ESSER THREE, WHERE THEY CAN NOT OFFSET THAT OR SUPPLANT THAT FUNDING.
AND WITH THAT, MR. MILLER, WE'LL TURN IT BACK OVER TO YOU.
IT WAS A HIGH, HIGH LEVEL OVERVIEW OF THE PROCESS THAT WE'RE GOING TO GO THROUGH FOR THE REST OF THE YEAR. BOARD DO WE HAVE ANY QUESTIONS? WE'LL START WITH MR. JOHNSON.
RINGO. YOU JUST SAID SOMETHING THAT WE'VE HEARD SEVERAL TIMES OVER THE COURSE OF YEARS THAT AS WE GET ADDITIONAL REVENUE THROUGH PROPERTY TAX VALUATIONS INCREASING THE STATE CUTS A PROPORTIONATE AMOUNT OF REVENUE.
I GUESS THE QUESTION I HAVE IS THEN WHY DOES WHENEVER WE HAVE A FIVE PERCENT TAX VALUATION, WHY DOES THAT PROVIDE US WITH MORE MONEY IN THESE SPREADSHEETS THAT I'M SEEING? FOR NEXT YEAR, WE THE ADA IS NOT THE SAME AS CURRENT YEAR.
WE READJUSTED OUR ADA FOR NEXT YEAR'S BUDGET.
SOLELY BASED ON ADA HAS NOTHING TO DO WITH, I GUESS, THEN I'M THROWN.
WHY DO WE EVEN BOTHER PUTTING THE FIVE PERCENT ESTIMATE ON THERE IF IT MAKES NO DIFFERENCE . IT'S REALLY FOR THAT IT MAY HELP A STAKEHOLDER UNDERSTAND WE HAVE WE HAVE TAXABLE VALUE GROWTH. THE RATE WILL BE COMPRESSED.
THAT'S THE DIFFERENCE AS LONG AS WE'RE ABOVE 2 AND A HALF PERCENT IT'S GOING TO THAT COMPRESSION'S GONNA VARY.
THE HIGHER IT IS, THE MORE COMPRESSION WE'RE GOING TO HAVE.
IF IT'S BELOW TWO AND A HALF PERCENT, THAT RATE COULD ACTUALLY DECOMPRESS, MEANING IT'S GOING TO REQUIRE US TO RAISE THE RATE TO MAINTAIN THAT SAME LEVEL OF FUNDING.
AND MR. JOHNSON, MAYBE TO HELP VISUALLY ON THAT EXAMPLE, WHEN WE TALK ABOUT THE ADA CHANGES, IF WE LOOK STRICTLY AT 22 23, YOU CAN SEE LOCALLY WE'RE GOING TO COLLECT THE SAME AMOUNT OF FUNDING FOR FUNDING OF REVENUE.
ON THE STATE SIDE BASED OFF THAT ADA CHANGE WITH THAT SAME ADA LEVEL, YOU CAN SEE THE VARIATION OF WHAT THE STATE GIVES US.
SO YOU'RE SAYING BASICALLY THE MAIN IMPACT FROM THE TAV GROWTH COMES TO WHETHER OR NOT WE GET COMPRESSED FURTHER? YES, SIR. AND OUR INS TAX RATE WITH OUR DEBT PAYMENTS.
THAT'S IT, MR. PRESIDENT. OK BOARD ANY OTHER QUESTIONS.
MR. MILLER, I'D LIKE TO HIGHLIGHT WE'RE MEETING WITH DCAD NEXT WEEK.
THEY WILL GIVE US OUR INITIAL ESTIMATE AS TO HOW THAT PROCESS WORKS, AND WE SAW WITHIN THE CALENDAR TO ADOPT THE BUDGET AND TAX RATE.
WE'LL GET A PRELIMINARY LETTER IN APRIL.
AND THOSE NUMBERS CHANGE DRASTICALLY, WHICH IS NORMAL.
WE WILL ACTUALLY SHOW THAT IN THE BUDGET PRESENTATION, WE TRIM THAT TO GET AN ACCURATE PROJECTION FOR AUGUST AND THEN AUGUST WE GET A CERTIFIED LETTER.
COULD YOU GO BACK TO THE PAGE ON THE PROPERTY TAX RATES? MY DISTRICT.
DO WE HAVE ANY FIGURES THAT INDICATE HOW MUCH OF A TRE THESE DISTRICTS ASKED FOR? IS THAT IS THAT INFORMATION AVAILABLE? WE WOULD BE ABLE TO ACQUIRE THAT OFF RIGHT NOW NO, BUT WE CAN GET THAT INFORMATION AND I DO KNOW MOST OF THE DISTRICTS WITHIN THIS HAD GONE AFTER ALL THE PENNIES.
I WILL USE HIGHLAND PARK AS AN EXAMPLE.
THEY ONLY WENT AFTER THE REMAINING GOLDEN PENNIES.
YEAH, BECAUSE IT'S INTERESTING WHERE IT SHOWS US WITH A 0.9384 AND OTHER DISTRICTS LIKE GRAND PRAIRIE, ONLY 9603 AND SHOWN THEY DID A TRE SO KIND OF INTERESTING.
YEAH, I COULDN'T SEE YOU FROM HERE BY MAKING THIS PRESENTATION IS JUST FOR INFORMATION PURPOSES OR IS THERE ANY SUGGESTION FROM THE ADMINISTRATION AT SOME POINT TO PURSUE A TRE AGAIN? I THINK THE TRE IS INEVITABLE.
WE UNDERSTAND THAT WITH THE RISING COSTS THAT ARE HAPPENING AROUND OUR DALLAS FORT WORTH AREA, THAT WITHOUT SIGNIFICANT PAY INVESTMENTS IN OUR EMPLOYEES, IT WILL HARD TO KEEP PEOPLE EMPLOYED ALSO TO MAINTAIN OUR PROGRAMS. WE'RE ONE OF THE HIGHER COST OF LIVING AREAS, US AUSTIN AND WITHOUT A TRE, IT WOULD BE
[00:35:05]
HARD TO SUSTAIN. SO WE'RE GOING TO BE ENVISIONING PROBABLY A TRE IN THE FUTURE, BUT NOT THE NEAR FUTURE. WHAT WE'VE BEEN FORTUNATE TO BE BALANCING A LOT OF OUR BUDGET AND FEDERAL SUPPORT FOR ESSER HAS HELPED OFFSET SOME COSTS, NOT ALL COSTS.AND WE HOPE WE CAN CONTINUE THIS RATE FOR A FEW MORE YEARS.
AND THEN FROM THERE WE WOULD DO WE WOULD DO WHAT WE NEED TO DO TO GET THE PUBLIC INVESTED INTO OUR TEACHERS.
THERE WAS INFORMATION THAT THE GOVERNOR, I THINK THE GOVERNOR HAD PROPOSED THAT FOR SCHOOL DISTRICTS GOING OUT FOR BONDS IN THE MAY ELECTIONS, THERE WOULD POTENTIALLY BE A REQUIREMENT FOR HAVING A TWO THIRDS VOTE.
IS THAT JUST PROPOSED BY THE GOVERNOR OR IS THERE SOME LANGUAGE THAT MAY BE COME UP BEFORE THE NEXT LEGISLATURE? BECAUSE THAT WOULD THAT MAY AFFECT THE TIMING OF EITHER.
WE KNOW WE CAN ONLY DO TRES IN NOVEMBER.
WE CAN DO BONDS IN MAY, BUT THAT MAY CHANGE BASED ON THAT LANGUAGE.
ANYTHING MORE ON THAT? YES, SIR. GREAT QUESTION.
AS WE APPROACH LEGISLATIVE SESSIONS, EVEN THOUGH WE'RE A YEAR OUT, THOSE COMMITTEES AND BILLS ARE BEING DRAFTED BECAUSE WHEN THEY SHOW UP IN JANUARY FOR THE NEXT LEGISLATIVE SESSION, THOSE DRAFTS ARE ALREADY DONE AND COMPLETE AND FROM DISCUSSIONS TAKING PLACE AT THE STATE LEVEL. IT'S VERY SIMILAR TO WHAT WE'VE SEEN HISTORICALLY AT THE STATE LEVEL.
NEW LEGISLATION THAT IS ALWAYS CAME OUT HAS TYPICALLY NOT MADE IT EASIER FOR SCHOOL DISTRICTS TO PASS BOND PROGRAMS OR TRES AND THE MOST RECENT EXAMPLE I CAN GIVE IS THE CHANGE IN BALLOT LANGUAGE FOR A TRE WHERE DISTRICTS DON'T HAVE ANY CONTROL ON THAT.
IT MADE IT SOUND LIKE A LARGE TAX RATE INCREASE, EVEN IF THE RATE WAS BEING MAINTAINED OR DECLINING. AND EVEN FOR BOND PROGRAMS, IT STATES IN BOLD CAPITAL LETTERS ON THE BOND BALLOT. THIS IS A TAX RATE INCREASE EVEN IF THE DISTRICT IS LOWERING THE TAX RATE.
AND ONCE THAT LEGISLATION WENT THROUGH IN THE TWO SESSIONS AGO, IT WENT FROM ABOUT A 89 PERCENT PASS RATE ACROSS THE STATE TO 40 PERCENT WHAT WE'RE SEEING FOR DISCUSSIONS NEXT YEAR. THIS PROPOSAL, THE GOVERNOR IS PROPOSING IT'S ELECTION SEASON AT THE STATE LEVEL IN NOVEMBER, THAT THERE BE SOME STATUTE THAT IF A DISTRICT WERE TO GO FOR A BOND PROGRAM IN MAY, IT WOULD REQUIRE TWO THIRDS VOTE OF THE BOARD OF TRUSTEES AND A TWO THIRDS VOTE TO PASS BY THE STAKEHOLDERS WHO VOTE IN THAT ELECTION.
THE NOVEMBER SIDE UNDER THE CURRENT DISCUSSIONS, AND WHAT WE'RE HEARING WOULD STILL REMAIN THE SAME AS IT IS NOW A BOARD VOTE TO CALL FOR THE ELECTION AND THEN A GREATER THAN 50.01 PERCENT VOTE TO PASS THE BOND PROGRAM.
AND IF YOU LOOK AT OUR UNENCUMBERED FUND BALANCE NOW, WE COULD SAY IT'S A LITTLE BIT MORE THAN SIX MONTHS POTENTIAL OF PAYROLL RIGHT NOW AT THIS VERY MOMENT.
OF OUR UNSPENT DOLLARS RIGHT, SIR.
BUT SOME OF THE PROJECTIONS YOU'RE MAKING FOR FUTURE YEARS TAKE US DOWN TO WHERE IT'S MAYBE THREE FOUR MONTHS.
YES, SIR. AND THE REASON THOSE PROJECTIONS ARE HERE.
LET ME GO BACK TO OUR FUND BALANCE SLIDE.
ONCE I GET THERE, I'LL SPEAK TO IT, AND THAT'S GOING TO BE ON SLIDE NUMBER TWENTY EIGHT ON THAT FUND BALANCE SLIDE, YOU CAN SEE THE REASON WE'VE HAD TWO LARGE FUND BALANCE ADDS PRIOR TO 2020 2021.
WE CHANGED OUR FISCAL YEAR IN 18 19.
WE DID NOT KNOW HOW BILL THREE WAS COMING THROUGH TWO LESS MONTHS OF OPERATIONS, 19 20 HOUSE BILL THREE PASSED.
THEN WE ALSO SHUT DOWN FOR THREE MONTHS.
SO NO, THERE WAS NO PROCUREMENT OUTSIDE WHAT WAS REQUIRED TO PAY UTILITIES BETWEEN OCTOBER AND JUNE.
WE HAD A LARGE FUND BALANCE ADD AND THE 2021 WE WERE BACK TO MORE NORMAL OPERATIONS WITH ADA DECLINE.
IT HAD NOT BEEN FOR HOUSE BILL THREE THE YEAR PRIOR OUR ACTUAL DEFICIT BUDGET IN 2021 WOULD HAVE BEEN ROUGHLY TWENTY ONE MILLION DOLLARS.
AND I DO BELIEVE THIS YEAR WITH TEA, THE TEXAS EDUCATION AGENCY, NOT TALKING ABOUT ANOTHER HOLD HARMLESS PROVISION FOR THIS YEAR THAT DEFICIT BUDGET PICTURE WE WILL HIT.
NOW IT WILL NOT BE TO THE EXTENT OF WHAT'S ON PAPER BECAUSE AS MS. MAYO POINTED OUT WE HAVE OVER FIVE HUNDRED POSITIONS VACATED IN THE GENERAL FUND.
WE USUALLY AVERAGE AROUND 220 225.
THAT'S GOING TO BE ABOUT A HOPEFULLY A TWENTY MILLION PAYROLL SAVE IN WHAT'S THE NEXT PENSION BUDGET.
THERE WILL BE SOME NON-PAYROLL.
WE NEVER SPEND OUR ONE PERCENT OF OUR PAYROLL BUDGET EITHER.
SO AS WE SEE THAT WHAT WE'RE SEEING NOW, WE STILL DON'T KNOW WHAT OUR FUNDING AMOUNT IS FOR CCMR. AND AS ALL THIS GETS SETTLED, WE'RE NOT GOING TO SPEND EVERY DOLLAR.
WE WILL HOPEFULLY HAVE SOME REVENUE INCREASES.
AND AS WE DO THAT, THAT DEFICIT BUDGET COULD BE IN THE THREE TO 10 MILLION DOLLAR RANGE.
AND SO AS WE PROJECT OUT, WE SHOW WHAT THE FULL BUDGET IS IF WE WERE TO EXPEND IT AND IF
[00:40:02]
WE LOOK AT FUND BALANCE BASED OFF OUR ADOPTED BUDGETS, IT'S ABOUT FIVE AND A HALF MONTHS.WE HAVE AGING FACILITIES AND AS A CFO WITH AGING FACILITIES AND WE KNOW WE'RE GOING HAVE SOME NEEDS WITH OUR MAINTENANCE DEPARTMENT, WITH MECHANICAL NEEDS THAT NEED TO REPLACE NOW. AND WE DON'T HAVE A BOND PROGRAM.
WE NEED AT LEAST FOUR AND A HALF MONTHS OF OUR ADOPTED BUDGET WOULD BE ABOUT TWO HUNDRED AND FIVE MILLION.
SO IF YOU GO TO SLIDE IT'S EITHER THIRTY FOUR OR THIRTY SIX, I HAVE PAGE THIRTY SIX AND THIRTY FOUR YOU LIST GENERAL FUND SCENARIOS.
THAT'S IT. SO IT GETS FAIRLY DIRE.
IF WE SPEND EVERY DOLLAR. YEAH.
AND WITHOUT THE ADDITION POTENTIALLY OF A TRE.
YES, SIR. YEAH. AND THE INTERESTING THING YOU TALKED ABOUT AND WE TALKED ABOUT PBK MADE THOSE PBK PRESENTATION WE SAW LAST A COUPLE OF WEEKS AGO ABOUT OUR FACILITIES.
WE KNOW THEY'VE MOVED A LOT OF OUR AGING FACILITIES FROM YEARS THREE, FOUR AND FIVE, WHICH WHEN THEY FIRST DID THIS ANALYSIS WAS DONE TWO YEARS AGO.
NOW THEY'VE MOVED THOSE FACILITIES INTO ONE AND TWO, AND THOSE ARE ALL COMING UP, ESPECIALLY THE HVAC.
SO IT STARTS TO MAKE A PROJECTION OF MAYBE THESE NUMBERS ARE CLOSER TO REALITY THAN THEY'VE EVER BEEN BEFORE.
IS THAT A FAIR ASSUMPTION? YES, SIR. ESPECIALLY ON THE REVENUE SIDE.
WE BEFORE 17 18, WE DID NOT ACCOUNT FOR FEDERAL REVENUE AND YOU CAN SEE FEDERAL REVENUE WHERE THOSE NUMBERS LIE.
THAT WAS ALWAYS ADDED AT THE END IN THE PROJECTION.
WE DID NOT ACCOUNT FOR SOME OF OUR LOCAL REVENUE SOURCES, EITHER INTEREST INCOME AND A COUPLE OF OTHERS. FROM DAY ONE WE NOW PROJECT THAT WITH OUR BOARD SO THEY CAN SEE THAT.
AND SO REVENUE IS MORE IN ALIGNMENT THAN WHAT IT'S EVER GOING TO BE AND ON THE EXPENDITURE SIDE, THAT TOO.
AND THE REASON I REFER TO FUND BALANCE IN REGARDS TO THE ADOPTED BUDGET VERSUS ACTUAL EXPENDITURES, WE'RE AVERAGING LARGER THAN NORMAL VACANCIES ON THE PAYROLL SIDE, AND BECAUSE OF THAT, THERE'S LARGER THAN NORMAL SAVES ON THE PAYROLL SIDE.
AND SO IF WE LOOK AT IT, ONCE WE START RECOVERING FROM COVID AND FILL THESE VACANCIES, THAT EXPENSE AMOUNT IS GOING TO GO UP WITHIN IS WHAT APPROVED BY THE BOARD OF TRUSTEES.
IT WILL JUST BE HIGHER BECAUSE HOPEFULLY WON'T HAVE AS MANY VACANCIES.
LAST YEAR, I KNOW WE REALLY STRUGGLED SEEMED LIKE WITH THE APPRAISAL DISTRICT TOO WITH THE NUMBER OF PEOPLE THAT WERE CHALLENGING THEIR TAXES.
AND WE NEVER DID REALLY GET A TRUE FIGURE OF WHERE, YOU KNOW, EVERY TIME WE CAME TO A BUDGET MEETING, WE NEVER DID. Y'ALL WERE GUESSING, TOO, BECAUSE WE NEVER COULD GET A TRUE ANSWER THERE. ARE WE LOOKING LIKE THAT WE'RE GOING TO BE FACING THAT AGAIN THIS YEAR AS FAR AS TRYING TO EVALUATE WHAT OUR BUDGET IS GOING TO BE AND HOW WE'RE GOING TO EVALUATE THAT? YES, SIR.
THAT'S A GREAT QUESTION. WITH THE PASSAGE OF HOUSE BILL THREE AND GO INTO CURRENT YEAR VALUES, THAT IS THE IMPACT NOW FACED BY ALL SCHOOL DISTRICTS.
AND THERE'S BEEN RECORD NUMBERS EVERY YEAR OF PROTEST HOMEOWNERS PROTESTING THEIR PROPERTY VALUES.
AND SO WITH THE RECORD NUMBER OF PROTESTS, COUPLED WITH NOW RELYING ON CURRENT YEAR VALUES, THE STATE HAS BASICALLY TAKEN AWAY THE LOCAL CONTROL OF CONTROLLING THAT TAX RATE. BECAUSE ONCE THOSE COME OUT, THE STATE DIRECTS DISTRICTS, THIS IS YOUR MAXIMUM COMPRESSED TAX RATE.
AND THAT'S WHAT DISTRICTS HAVE TO ADOPT.
SO THERE'S REALLY NO LOCAL AUTHORITY THAT ANYMORE, BUT WE DO FORESEE THE SAME THING, YOU KNOW? MY GUESS IS IT'LL BE LARGER THAN NORMAL.
THERE'LL BE ANOTHER RECORD YEAR OF PROTEST WITH DCAD.
THIS HAS ALL HAPPENED DURING COVID, TOO, WITH THESE PROPERTY VALUES INCREASING THE WAY THEY HAVE BEEN. AND BECAUSE OF THAT, THEY WILL GIVE US NUMBERS.
WE WILL DO THE BEST WE CAN WITH THE NUMBERS WE HAVE AT THE TIME PRESENT THAT WITH THE BOARD AND AS WE PROGRESS EACH MONTH, MAKE TWEAKS BASED OFF THOSE LETTERS THAT COME OUT IN APRIL AND MAY AND THEY WILL DCAD WILL TELL US AT THE POINT WHERE WE'RE SEEING LARGER THAN NORMAL RECORD PROTEST.
AND BECAUSE OF THAT, THEY TELL US HOW MUCH IS LEFT OFF THE TAXABLE VALUE TOO.
AND WE TRY TO ACCOUNT FOR THAT IN OUR PROJECTIONS BASED OFF THOSE HISTORICALS.
BECAUSE I REMEMBER WE WERE IN AUGUST TO APPROVE THE BUDGET AND WE WERE STILL TRYING TO FIGURE OUT WHERE THEY WERE GOING TO COME IN.
SO THAT WAS PRETTY TOUGH WHEN WE'RE TRYING TO LOOK AT DOING OUR BUDGET HERE.
SO ANYWAY, JUST WAS CURIOUS THANK YOU.
I THINK HIS HAND WAS UP FIRST.
MR. SELDERS. THANKS FOR THAT PRESENTATION.
YOU MENTIONED WHEN YOU'RE ANSWERING MR. GLICK'S QUESTION ABOUT THE PAYROLL SAVES AND AS WE START HIRING TEACHERS, THAT NUMBER IS GOING TO CHANGE. SO I WAS JUST CURIOUS WITH THE ADA PROJECTIONS THAT WE HAVE.
WHY WOULD YOU ANTICIPATE THAT NUMBER GOING UP? WE HAVE LARGER THAN NORMAL VACANCIES I KNOW OUR HUMAN RESOURCES TEAM IS HAVING NEW
[00:45:01]
RECRUITING EFFORTS TO HIRE TEACHERS FOR NEXT YEAR.AND SO THROUGH THOSE MODELS AND SOME OF THE DISCUSSIONS TAKING PLACE OF WHAT WE'RE LOOKING AT USING UTILIZING ESSER FUNDS EVEN FOR NEXT YEAR.
WE'LL SHARE THAT PLAN WITH THE BOARD AND HAVE TO RESUBMIT THAT PLAN TO TEA BUT EVEN LOOKING AT UTILIZING SOME OF OUR ESSER SAVES FOR RECRUITMENT STIPENDS, MEANING IF YOU SIGN TO COME TO GARLAND ISD, YOU GET FIVE HUNDRED DOLLARS.
AS AN EXAMPLE, I'M NOT SAYING THAT'S HAPPENING.
AND SO WITH OUR HR TEAM'S EFFORTS AND COMMUNICATION, THE HOPE IS WE DON'T HAVE AS MANY VACANCIES NEXT YEAR AS WE OWN, AND THEY'RE ABLE TO FILL THESE POSITIONS BECAUSE ONCE A TEACHER IS UNDER CONTRACT, THEY'RE IN A CONTRACT FOR THAT YEAR.
THEY WOULDN'T, YOU KNOW, THEY DON'T CHANGE DISTRICTS, NOT IN THE YEAR.
AND SO OUR HOPE IS, IS THAT THAT VACANCY REPORT THAT WE'VE SHARED WITH YOU INSTEAD OF AVERAGING OVER FIVE HUNDRED, WE GO BACK DOWN IN THE TWO HUNDRED RANGE OF WHAT HISTORICALLY IT'S BEEN.
BUT I CAN ALSO SAY THAT VACANCY IS NOT ABNORMAL TO GARLAND ISD.
THIS VACANCY RIGHT NOW ACROSS THE STATE OF TEXAS, THERE ARE CURRENTLY 9000 TEACHER VACANCIES, JOBS THAT ARE AVAILABLE FOR PEOPLE TO BE HIRED.
THAT IS NOT ACCOUNT FOR ALL THE SUPPORT STAFF, AUXILIARY STAFF, PROFESSIONAL ADMINISTRATIVE STAFF THAT IS JUST CERTIFIED EDUCATORS ACROSS THE STATE OF TEXAS.
WHEN WE LOOK AT NEW INITIATIVES THAT ARE IN THE BUDGET, YOU ALL HAD THAT ON A PAGE BACK THERE. WE'VE HAD SEVERAL DIFFERENT AUDITS THAT HAVE COME TO US THAT POSSIBLY WILL REQUIRE NEW POSITIONS, MODIFIED POSITIONS.
WHAT DOES THAT LOOK LIKE? DR. LOPEZ, AND WHERE WOULD WE SEE THIS IN THESE BUDGET INITIATIVES? BECAUSE I THINK AS A BOARD, AS WE DISCUSS THOSE FINDINGS, IT WAS CLEAR THAT WE WERE GOING TO HAVE TO DO SOMETHING WITH CHANGE POSITIONS OR WHATEVER, AND I DIDN'T SEE THAT THERE.
AND IF IT'S BURIED SOMEWHERE, IT DOES NOT NEED TO BE BURIED.
IT NEEDS TO COME UP SO THAT WE CAN ACTUALLY SEE WHAT POSITIONS WE ARE ADDRESSING TO ADDRESS THE FINDINGS.
VERY GOOD QUESTION. SO THERE'S TWO THINGS.
SO AS WE'RE COMING UP, THIS SLIDE IS VERY IMPORTANT.
SO WHAT WE'LL DO IS KEEP IT UNDER THIS FORMAT.
SO IF YOU LOOK UNDER THE SECOND PART WHERE IT SAYS RECOMMENDATION ON GOING 22 23 AND FUTURE FISCAL YEARS, YOU'LL SEE THE PRE-K EXPANSION WITH 12 TEACHERS, 19 PARAPROFESSIONALS. YOU'LL SEE THE COLLEGE FOR ALL TWO NURSES TWO EARLY COLLEGE LIAISONS AT THE EAST FIELD AND TWO MAGNET ADVISORS.
SO WHAT WE'LL DO IS WHEN WE GET THE MAGNET FIGHTING, SUCH AS EITHER SPED OR HR.
I THINK THAT'S WHAT YOU'RE REFERRING TO.
WE'LL ADD IT THERE, SO YOU COULD SEE WHAT WE'RE DOING.
NOW, THE SECOND PART TO IT MS. GRIFFIN IS THE FIRST THING THAT WE DO.
WE DON'T JUST SIMPLY SAY THIS IS WHAT WE NEED.
LET'S ADD IT. THE FIRST THING WE DO IS SAYING, DO WE HAVE THE PERSONNEL AND ARE THEY USED EFFICIENTLY? AND WHAT CAN WE BETTER REORGANIZE TO BASED ON THE AUDIT FINDINGS? SO THAT'S THE FIRST STEP, ALWAYS.
SO IF YOU LOOK AT OUR SPECIAL EDUCATION AUDIT, WHAT WE DO IS WE GET IT.
WE SEE THAT THEY'RE RECOMMENDING A FEW THINGS.
THEN WE LOOK AT HOW OUR STRUCTURE IS AND THEN WHAT WE DO IS THAT'S WHY WE'D LIKE TO GET A CONSULTANT AND THE CONSULTANT HELPS US BRIDGE THAT GAP.
AND THEN ANYTHING ELSE THAT CAN'T BE BRIDGED IS ADDED THERE.
OK. AND I JUST THINK THAT IT'S THAT INFORMATION IS CLEAR WHETHER WE REPURPOSE, CHANGE, ADD TO MODIFY EXISTING JOB DESCRIPTIONS.
I THINK IT'S GOOD THAT THAT IS SEEN CLEARLY.
SO WHEN WE WE LOOK AT OUR PROGRESS BASED ON THE AUDIT FINDINGS OR SUGGESTIONS OR RECOMMENDATIONS THAT THEY GAVE TO US.
THE NEXT THING WAS WE I HAVE FORGOTTEN WHAT OUR OFFICIAL TITLE IS OF THE SIX TRANSFORMATIONAL SCHOOLS THAT WE ARE WORKING ON.
WHAT ARE THEY? WHAT IS IT? MS. GRIFFIN THOSE ARE SCHOOL ACTION FUND GRANT CAMPUSES.
OK, SO THOSE ARE TO GO INTO EFFECT NEXT SCHOOL YEAR.
IS THAT CORRECT? AND SO BECAUSE THEY ARE COMING FROM A GRANT DOES THAT MEAN THAT THERE IS NO GENERAL OPERATING BUDGET REQUIREMENTS TO IMPLEMENT THAT, AND IF IT IS,
[00:50:03]
THEN I WOULD LIKE TO ALSO SEE THAT THAT'S AN ADDITIONAL LINE ITEM BECAUSE WHAT HAPPENS WHEN WE GET THESE GRANTS AND YOU ALL DECIDE AS STAFF HOW YOU'RE GOING TO FILL THEM, THAT'S GREAT WITH THE GRANTS, BUT MANY OF TIMES THERE ARE OTHER THINGS THAT HAVE TO BE DONE WITHIN THE DISTRICT.I THINK MOVING INTO THIS NEXT BUDGET, IT MUST BE A CLEAR UNDERSTANDING OF NEW MODIFIED REPURPOSED POSITIONS OR WHATEVER.
SO WE CLEARLY KNOW WHAT WE'RE DOING AND WHAT WE'RE TRACKING FROM THE GENERAL OPERATING BUDGET AND FROM THE GRANTS THAT WE'RE GETTING.
MS. GRIFFIN. I CAN ADDRESS A PORTION OF THAT QUESTION.
SO THERE WILL BE A SMALL IMPACT TO THE GENERAL FUND REGARDING THE SAF CAMPUSES.
WE HAD TO INCREASE OUR SKYWARD CONTRACT TO ADDRESS THE ADDITIONAL LOCATIONS IN SKYWARD, AND THAT'S COMING TO YOU IN THE BUDGET AMENDMENT.
SO YOU'LL BE ABLE TO SEE THAT BECAUSE WE HAVE TO IMPLEMENT THAT IN THIS FISCAL YEAR IN ORDER TO BE PREPARED FOR NEXT FISCAL YEAR.
AND I ASSURE YOU, ANY ADDITIONS TO THE GENERAL FUND THAT AFFECT ANY NEW PROGRAMS WILL BE REPRESENTED ON THIS SLIDE IN THE GENERAL FUND BUDGET RECOMMENDATIONS.
I'M GOING TO SAY IT AGAIN. I KNOW YOU ARE HEARD IT GRANT MONEY AND GENERAL FUND MONEY.
THEY NEED TO BE CLEARLY SEPARATED SO THAT WE CAN UNDERSTAND.
ANY OTHER BOARD MEMBERS COMMENTS? I WOULD JUST LIKE TO SAY, YOU KNOW, FOR MY PART IN UNDERSTANDING OUR ADA.
YOU KNOW, I KNOW OUR ENROLLMENTS FIFTY THREE THOUSAND AND I KNOW WE NEVER HAVE FULL ENROLLMENT, BUT WE ARE WAY LESS THAN FULL ENROLLMENT.
DO WE TOTALLY UNDERSTAND? I MEAN, THERE'S A COVID IMPACT, I KNOW.
BUT YOU KNOW, PRETTY MUCH EVERYBODY IS BACK IN SCHOOL.
SO DO WE KNOW WHAT HAPPENED TO THE TWO THOUSAND OR SO KIDS THAT STILL REMAIN NOT IN ATTENDANCE? I CAN SPEAK TO SOME OF THAT MR. MILLER. THAT'S A GREAT QUESTION.
WHEN COVID HIT THAT VERY NEXT SCHOOL YEAR, ROUGHLY THREE PERCENT OF THE KIDS ACROSS THE STATE. I DON'T USE WORD DISAPPEARED, BUT THEY DID NOT REENROLL IN THEIR SCHOOLS.
DURING THE SAME TIMEFRAME WE HAVE SEEN AN UPTICK OF ONLINE SCHOOLS, ALSO NOT NECESSARILY WITHIN GARLAND, BUT EVEN THERE'S BEEN CHARTER SCHOOL INCREASES.
AND SO WE HAVE LOST KIDS, NOT JUST WE.
THIS IS AN IMPACT ACROSS THE STATE WE OUR DROP IN ADA WAS IN ALIGNMENT WITH THE AVERAGE ACROSS THE STATE, RIGHT AT THREE PERCENT.
AND SO KIDS HAVE ENROLLED IN MORE OF THESE ONLINE TYPE SCHOOLS.
SOME, YOU KNOW, FOR US, IT HAS NOT BEEN IMPACTED SO MUCH BY CHARTER SCHOOLS.
HEMPHILL'S TEAM HAS PUT BOOTS ON THE GROUND PER SAY TO GO DOOR TO DOOR TO GET THOSE KIDS WHO DO NOT NECESSARILY REENROLL WITH US TO TRY TO GET THEM BACK INTO OUR FACILITIES.
YEAH, WELL, I THINK IT'S AS A BOARD MEMBER I'D LIKE TO CONTINUE TO HEAR WHAT'S GOING ON WITH THE I CALL THEM THE MISSING KIDS.
THEY'RE NOT MISSING, THEY'RE JUST NOT ENROLLED.
IF THERE'S A TREND THERE THAT WE NEED TO PICK UP ON AND START PLANNING FOR, IF IT'S GOING TO BE A DIFFERENT PROFILE THAN WE'VE USED IN THE PAST WITH OUR MODELING, JUST MAKE SURE WE KNOW BECAUSE IT MAY NOT BE, YOU KNOW, WE MAY NOT BE IN THE 95 PERCENT IN ADA RANGE ANYMORE. IT MAY BE MORE LIKE 90.
AND THAT'S A TREMENDOUS IMPACT ON OUR BUDGETING.
AND OUR NEW, I SAY, NEW BASED OFF THE NEWER TRENDS.
OUR PROJECTIONS ARE BASED OFF THAT ADA TYPE PROJECTIONS AND AND FOR EXAMPLE, THIS YEAR WE'VE HAD ADA ON CERTAIN DAYS IN THE LOW 80 PERCENT RANGE AND PRIOR YEARS YOU MIGHT HAVE ONE OR TWO OF THOSE TYPE DAYS.
AS WE'VE SEEN WITH COVID, THAT HAS BECAME MORE COMMON, WHICH IMPACTS OUR FUNDING.
SURE. AND SO ALL THAT WRAPPED INTO A NICE BOW.
I DON'T KNOW IF THE SAME MODEL PROJECTIONS EXPECTATIONS ARE AS I'D BE INTERESTED IN YOUR THINKING ON THAT LATER.
ALSO, WITH RESPECT TO OUR TEACHER OUR VACANCIES, I DON'T KNOW THAT THE THE OLD MODEL OF VACANCIES IS GOING TO WORK ANYMORE.
I MEAN, IF WE'RE IF THERE'S NINE THOUSAND VACANCIES IN THE AREA OR THE STATE AND WE HAVE 500 OF THEM, I DON'T KNOW THAT WE CAN RECOUP VERY QUICKLY.
AS A MATTER OF FACT, MY FEAR IS THAT THAT NUMBER GOES HIGHER BEFORE IT GOES LOWER.
SO IN ALL OF OUR MODELING AND ALL OF OUR SCHEDULING AND EVERYTHING WE DO IN H.R., IT SEEMED TO ME LIKE THERE'S A NEW MODEL, THERE'S A NEW EXPECTATION, THERE'S A NEW AVERAGE THAT WE NEED TO PURSUE BECAUSE IT'S JUST NOT PLAYING OUT IN OUR NUMBERS.
[00:55:01]
AND SO AS WE GO FORWARD, I'D LIKE TO HEAR Y'ALLS THOUGHTS ON WHAT WE DO TO PREPARE FOR WHAT I THINK ARE TWO PRETTY IMPACTFUL REALITIES.WE CAN DO THAT AND WE WERE CLOSE TO DR.
RUSSELL AND DR. BROWN AND INCORPORATE THEM INTO OUR WORKSHOP.
OK. ANYTHING ELSE ALMOST SAID DR.
DOCTOR'S FINE. [LAUGHTER] RECENTLY, A FEW WEEKS AGO, WE HAD THE REGION 10 GRASSROOTS MEETING IN WHICH WE CAME UP WITH IDEAS TO PRESENT TO THE LEGISLATIVE COMMITTEES AS THEY GO FORWARD IN THE LEGISLATIVE SESSION NEXT YEAR.
BASED ON WHAT WAS MR. MILLER'S REFERENCING.
ONE OF THE REQUESTS, WHICH I BELIEVE MADE THE TOP FIVE, WAS THAT WE BE PAID RATHER THAN ON ADA WE BE PAID ON ACTUAL NUMBER OF STUDENTS REGISTERED.
AND I'VE HEARD THAT BEFORE AT A COUPLE OF OTHER CONFERENCES I'VE BEEN TO.
WHAT DO YOU THINK ABOUT THAT? DO YOU THINK THERE'S ANY POSSIBILITY? I KNOW WE REALLY DON'T GET PAID ON ADA.
WE GET PAID ON YOU KNOW [INAUDIBLE] AND WEIGHTED ON THE AVERAGE DAILY.
BUT THAT WAS ONE OF THE INTERESTING THINGS THAT WAS PROPOSED AND I THINK AT THIS POINT, I'VE HEARD THAT AROUND FROM OTHER OTHER AREAS, REGIONS AROUND THE STATE, THE PUSH FOR THAT. DO YOU THINK THERE'S ANY POSSIBILITY THAT COULD OCCUR? SIMILAR TO, I GUESS, MY HOPE WHEN WE GO TO EACH SESSION THAT THEY WILL ACTUALLY MAINTAIN THE SAME LEVEL OF FUNDING AS WE PAY MORE INSTEAD OF CUTTING IT.
IF THEY WOULD JUST MAINTAIN THE SAME LEVEL, THERE'D BE MORE MONEY IN PUBLIC EDUCATION TO OPERATE WITH. WHEREAS WE'VE SEEN OVER THE YEARS THE STATE HAS NOT BEEN VERY FRIENDLY IN PROVIDING NEW MONEY TO PUBLIC EDUCATION.
SO BASING FUNDING OFF ENROLLMENT THAT WOULD HELP US AND NOT JUST US ALL DISTRICTS TREMENDOUSLY, I DON'T FORESEE THAT GOING THROUGH BECAUSE THAT MEANS THE STATE IS GOING TO HAVE TO COMMIT THOSE DOLLARS, WHICH MEANS NEW MONEY FOR PUBLIC EDUCATION AND FOR WHATEVER REASON, AS WE'VE SEEN THROUGH EACH LEGISLATIVE SESSION BESIDES HOUSE BILL THREE, HOUSE BILL THREE WAS GREAT FOR PUBLIC SCHOOLS, BUT OUTSIDE HOUSE BILL THREE, THERE'S NOT BEEN EFFORTS OR EFFORTS.
THERE'S THERE'S DISCUSSIONS AND EFFORTS TO DO THAT.
BUT THE ACTIONS ON THE OPPOSITE SIDE HAVE NOT CAME THROUGH WHERE THAT'S ACTUALLY GONE THROUGH. SO I KNOW THERE'S A LOT OF DISCUSSIONS ABOUT THAT.
THERE WERE DISCUSSIONS ABOUT THAT BEFORE THE 2020 SESSION, AND THEY DID NOT COME TO FRUITION AT THAT TIME, EITHER.
WHEN YOU'RE EARLY IN THE PRESENTATION, YOU TALKED ABOUT SOME ONLY THE FIRST SIX WEEKS WOULD WE BE COMPENSATED FOR.
IS THERE ANY POSSIBILITY THAT IT MIGHT GO FURTHER THAN THOSE FIRST SIX WEEKS OR IS THAT YOU THINK THAT'S IT RIGHT NOW? THAT'S OUR HOPE. YOU KNOW, LAST YEAR, TEA WOULD GIVE US A NOTICE OF THREE TO FOUR WEEKS IN ADVANCE OR DURING THAT SIX WEEKS.
HEY, WE'RE GOING TO GIVE YOU A HOLD HARMLESS.
AND SO WE HAD THE FIRST SIX WEEKS LAST YEAR, THEN THEY DID THE SECOND AND THIRD, SIX WEEKS, THEN WE GOT THE SECOND SEMESTER.
THIS YEAR, WE'RE ALREADY IN THE SECOND SEMESTER AND THERE IS NOTHING COMING OUT FROM STATE LEVEL SAYING WE'RE GOING TO HELP YOU ON THIS, AND SO BECAUSE WE'RE SO FAR IN MY ASSUMPTION IS THEY WILL WAIT UNTIL OUR SUMMER SUBMISSION TO SEE WHAT THAT AVERAGE DAILY ATTENDANCE LOOKS LIKE ACROSS THE STATE BEFORE THEY TAKE ANY ACTION.
DO YOU BELIEVE THAT THE COMMISSIONER HAS THE AUTHORITY TO GIVE US HOLD HARMLESS FOR ADDITIONAL WEEKS? WITH GOVERNOR APPROVAL.
OK, THANK YOU, SIR. THANK YOU.
THANK YOU. THANK YOU FOR THE REPORT.
TWO THINGS KIND OF OFF OF WHAT MR. MILLER HAS ALREADY SAID.
BUT WHEN WE'RE LOOKING FOR THE KIDS THAT HAVEN'T COME BACK, ARE WE LOOKING AT THE HOME SCHOOLING AND ARE WE LOSING THEM TO HOME SCHOOLING? I'M GOING TO LET THE DEPARTMENT EXPERTS SPEAK TO THAT.
HEMPHILL AND DR. RUSSELL IS AVAILABLE.
I'M HERE AND WE DO HAVE A NUMBER OF HOME SCHOOL AS WELL, AND I'VE ALREADY REACHED OUT TO DR. HEMPHILL SO THAT WE COULD PROVIDE ACCURATE DATA IN THE BOARD INSIDE ON SUNDAY TO ANSWER THAT QUESTION OF WHERE OUR NO SHOWS HAVE GONE.
WE DO HAVE SOME KIDS THAT JUST DIDN'T ENROLL ANYWHERE AND WE'VE BEEN LOOKING FOR THEM AS WELL THOSE COUNT AS A BAD LEAVE OR A DROPOUT.
SO WE WILL HAVE THAT UPDATE FOR YOU SO I CAN GIVE YOU SPECIFIC NUMBERS OF THIS PERCENT WENT HERE, THIS NUMBER WENT THERE DR.
THERE'S A SYSTEM IN TEXAS THAT ANY THEY REGISTER FOR A SCHOOL, WE GET NOTIFIED.
SO THEN THAT YOU CAN CROSS REFERENCE ALL OF THAT.
AND SO WHETHER IT'S A CHARTER OR PUBLIC SCHOOL THAT ARE ALL ENTERED INTO THE SAME SYSTEM, THEN ONCE YOU KNOW WHERE THEY'RE AT, THEN THERE'S THAT GAP THAT YOU DON'T KNOW WHERE THEY'RE AT. AND WE'VE SENT OUR TEAMS TO DO HOME VISITS.
THEY'VE BEEN REALLY GOOD AND DILIGENT ABOUT KNOCKING ON PEOPLE'S DOORS, TRYING TO GET
[01:00:01]
THEM THERE. OK, NOW THIS IS THE TRICKY PART BECAUSE THIS IS A TWO FOLD.YOU ACTUALLY ASKED THE TWOFOLD QUESTION.
SO GETTING THEM IN OUR SYSTEM PUTS THEM IN OUR SYSTEM.
OK, BUT IT DOESN'T NECESSARILY HELP US WITH ADA UNLESS THEY COME TO SCHOOL EVERY DAY SO WE COULD GET OUR KIDS REGISTERED AND COME IN AND THEN THEY DON'T SHOW UP.
WE'RE STILL GETTING HIT WITH ADA, YOU KNOW, SO WE GOT WE GOT TO REALIZE THAT AND THEN LET'S SAY THEY DON'T SHOW UP AND THEN THEY DROP OUT.
SO THOSE ARE ALL THE THINGS THAT ARE GOING ON.
AND THEN WHEN YOU LOSE THEM, THEY'RE CONSIDERED A DROPOUT AT ANY AGE.
SO WE HAVE TO FIND THOSE KIDS, AND THAT'S WHERE PEOPLE ARE HAVING A HARD PROBLEM FINDING THAT GAP OF STUDENT.
BUT IF YOU LOOK AT OUR ENROLLMENT, OUR ENROLLMENT IS AT ABOUT FIFTY THREE THOUSAND ALMOST FIFTY FOUR THOUSAND.
BUT OUR ADA'S AT FORTY SEVEN AND WE GET PAID FOR THE KIDS THAT SHOW.
SO JUST BECAUSE WE GET THEM ENROLLED DOESN'T MEAN WE'RE GETTING MONEY FOR THEM UNLESS THEY SHOW UP EACH AND EVERY DAY.
I KNOW THAT I'VE BEEN GOING TO A LOT OF EVENTS LATELY AND THERE'S JUST THIS PUSH FOR HOME SCHOOLING. SO I'M JUST WONDERING IF WE'RE LOSING KIDS MORE TO HOME SCHOOLING THAN WE REALIZE. THAT'S ALL.
AND THEN AS WE'RE DOING, WE'RE SHORT ON TEACHERS AND I KNOW AND I AGREE, I THINK THAT WE PROBABLY HAVE TO RETHINK WHAT OUR STANDARDS ARE FOR TEACHERS AND EVERYTHING.
BUT WHAT'S OUR WHAT'S OUR RATIOS RIGHT ARE WE STUDENT TEACHER RATIOS? ARE WE STANDING FIRM WITH THOSE OR ARE WE GOING TO BRING THOSE BACK AND MAKE ANY CHANGES TO THOSE? I MEAN, WHERE ARE WE SITTING? I CAN SPEAK TO THAT. SO H.R.
GIVES US THEIR FUNDING FORMULAS AND WE BUILD OUR BUDGETS BASED OFF THAT.
AND AS OF RIGHT NOW, OUR STAFFING RATIOS REMAIN THE EXACT SAME FOR NEXT YEAR'S BUDGET AND PLANNING PURPOSES, MEANING THE RATIOS FOR ELEMENTARY TWENTY TWO TO ONE.
WE DON'T FOLLOW WAIVER. THE ONLY TIME WE DO FILE A WAIVER THAT I'M AWARE OF IS IF A KID MOVES IN INSTEAD OF HAVING TO HIRE A TEACHER, WE WATCH FOR VACANCIES.
THEY MIGHT FILE A WAIVER AND HAVE TWENTY THREE IN A CLASS.
AND DR. RUSSELL, YOU CAN CORRECT ME IF I'M WRONG ON THAT.
AND THEN SECONDARY CAMPUSES HAVE A RATIO FOR STAFFING TOO.
AND SO DR. BROWN AND HER TEAM, WHEN THEY WORK WITH CAMPUSES, THEY LOOK AT THAT ENROLLMENT AND HAVE A RATIO FOR NUMBER OF TEACHERS THAT SHOULD BE AT THAT CAMPUS AND THIS REMAIN THE EXACT SAME. AND WHAT IS THE FOR? WE'RE CURRENTLY STAFFING AT TWENTY SEVEN TO ONE FOR MIDDLE AND HIGH SCHOOL.
AND HAVE WE ALWAYS BEEN STAFFING TWENTY SEVEN TO ONE OR IS THIS A CHANGE? THE CHANGE HAPPENED NOT THIS PAST YEAR, FROM TWENTY FIVE TO TWENTY SEVEN.
OK, MR. BEACH. ONE QUICK QUESTION TO KIND OF PIGGY TAIL OFF OF THAT.
WE STILL HAVE THE ACCREDITATION OF BEING A DISTRICT OF INNOVATION.
AND IN FACT, MR. BLAND IS WORKING ON OUR RENEWAL TO BE PRESENTED TO THE BOARD I BELIEVE IN MARCH. ARE WE ARE WE ON THE TEACHING SIDE OF IT? ARE WE ABLE TO REACH OUT TO THOSE THAT MAY NOT HAVE TEACHER CERTIFICATION, THOUGH, THAT WE CAN STILL USE TO HELP FILL SOME OF THESE VOIDS THAT WE'RE MISSING AS FAR AS THE NUMBER OF TEACHERS THAT WE'RE LOOKING AT? MR. BEACH THAT'S AN EXCELLENT QUESTION AND YES, OUR DISTRICT OF INNOVATION PLAN DOES ALLOW US TO HIRE TEACHERS WHO SOME WE CALL NON CERTIFIED INSTRUCTORS.
AND THOSE ARE PEOPLE WHO HAVE A DEGREE.
BUT THEY MAY NOT HAVE AN EDUCATION CERTIFICATION YET.
BROWN IS THERE. SO IF I GET IT WRONG, DR.
BROWN, YOU CAN COME UP AND EXPLAIN IT.
AND THEN WE ALSO ARE ABLE TO HIRE PEOPLE PRIMARILY FROM INDUSTRY.
FOR EXAMPLE, WE JUST HIRED A PHYSICIAN LAST WEEK WHO IS GOING TO BE TEACHING IN OUR HEALTH SCIENCE TECHNOLOGY PROGRAM AT ONE OF THE HIGH SCHOOLS.
AND SO WE WERE ABLE TO DO SO FOR FOR HIM BASED ON HIS DEGREE, HIS EXPERIENCE AND THE PARAMETERS THAT ARE OUTLINED IN OUR DISTRICT OF INNOVATION PLAN.
SO IN YOUR CONVERSATIONS, BOTH EITHER ONE OF Y'ALL WITH THE STATE AS FAR OR EVEN WITH TRS, THE INFORMATION, WHAT I'VE HEARD SOME INKLING THAT THERE'S A POSSIBILITY THAT PEOPLE THAT HAVE GONE INTO RETIREMENT THAT MIGHT WANT TO COME BACK FULL TIME AS A TEACHER, THEY WERE GOING TO DO A ONE OR TWO YEAR WAIVER BECAUSE OF THE TEACHER SHORTAGE.
IS THAT STILL A POSSIBILITY THAT YOU'VE HEARD ANYTHING THAT MIGHT HAPPEN? THAT IS, WE'VE ACTUALLY HEARD CONVERSATIONS OF THAT, MEANING THAT THE STATE HAS ACTUALLY DISCUSSED THIS. NOTHING HAS BEEN APPROVED BECAUSE THE SHORTAGE IS SO BAD THAT ALLOWING THIS IT WOULD ALLOW RETIRED EDUCATORS TO GET BACK IN THAT CLASSROOM.
WITHOUT BEING PENALIZED. WITHOUT BEING PENALIZED AND THE DISTRICT BECAUSE NOT ONLY THE EDUCATOR PENALIZED, THERE'S ROUGHLY A 17 PERCENT SURCHARGE TO THE DISTRICT FOR IF WE WERE
[01:05:05]
TO HIRE RETIRED EDUCATORS WHO RETIRED AFTER A CERTAIN TIMEFRAME, THEY'RE GOING TO CHARGE THE DISTRICT 17 PERCENT TO HIRE THEM.AND THAT DISCUSSION IS TO NOT HAVE A SURCHARGE AND NOT PENALIZE THE RETIRED EDUCATOR, BUT NOTHING HAS BEEN APPROVED.
OK, THANK YOU. MR. BEACH. JUST AS A POINT OF CLARIFICATION, THERE WAS APPROVED TO BE ABLE TO HIRE THEM TO TUTOR WITHOUT A PENALTY.
SO WE HAVE BEEN HIRING RETIRED TEACHERS, AS WE TALKED ABOUT AT THE LAST MEETING, SO.
OK. BOARD, I DON'T SEE ANY OTHER QUESTIONS.
THANK YOU AGAIN, MS. MAYO. YOU GET THE LAST QUESTION.
AND MAYBE JUST COMMENT, AND I MAY HAVE MISSED IT IN THE IN THE PROJECTION OF GOING TO THE $40000 HOMESTEAD EXEMPTION.
YOU HAVE BUILT THAT INTO THIS YEAR'S BUDGET ALREADY.
THAT'S A GREAT POINT. SOMEWHERE, JUST LIST THE DOLLAR IMPACT OF THAT.
THE TOTAL DOLLAR IMPACT OF THAT.
WE CAN ROUGHLY JUST OFF INITIAL ESTIMATES.
DR. CARR STATED, THE NUMBERS DON'T MEAN ANYTHING RIGHT NOW, BUT BASED OFF WHAT WE COULD SEE IN THE PROJECTIONS RIGHT NOW FOR GARLAND ISD ALONE, IT'S ROUGHLY AN EIGHT HUNDRED TO NINE HUNDRED MILLION DOLLAR IMPACT ON TRUE TAXABLE VALUES.
WHICH RELATES TO TAX REVENUE OF? I WILL GET THAT. THAT'S THE OFFSET WHATEVER DEFICIT IT'S SUPPOSED TO BE A BUDGET NEUTRAL INITIATIVE.
OK, OK. BUT MEANING WE'RE NOT SUPPOSED TO BE HURT IF IT WERE TO WERE TO HAVE ACTUALLY PROPERTY VALUE DECLINE BECAUSE OF THAT ADD, EVEN THOUGH THEY MAY HAVE DONE A LITTLE BIT. THE STATE SAYS, YOU KNOW WHAT, WE DON'T WANT TO HURT YOU AS A DISTRICT. WE'RE GOING TO GIVE YOU SOME HOLD HARMLESS TO OFFSET THAT AND THAT OFFSET, AND I WILL SAY THIS IS JUST LIKE EVERYTHING ELSE.
THOSE OFFSETS ARE NOT ALWAYS THEY'RE NOT ALL ONGOING.
IT'S FOR A SPECIFIED LIMITED AMOUNT OF TIME.
SURE. AND IF THE DISTRICTS DON'T RECOVER, ADA DOESN'T RECOVER.
WELL, LET'S CONTINUE TO TALK ABOUT THAT AS IT BECOMES A REALITY.
YOU CAN KEEP THAT FRESH ON OUR MIND.
THANK YOU BOARD. DO WE HAVE ANY OTHER QUESTIONS, IF NOT IT'S 5:11, DO WE HAVE A MOTION TO ADJOURN? SO MOVED IT'S 5:11 AND WE ARE ADJOURNED.
THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.