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[A. CALL TO ORDER]

[00:00:06]

THE TIME IS 5:30 AND THE QUORUM IS PRESENT.

DR. STINSON, WILL YOU CONFIRM THAT THIS MEETING WAS DULY CALLED AND THE NOTICE OF THE MEETING WAS POSTED IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT?

[B. FIRST ORDER OF BUSINESS]

YES. MR. DILKS.

WE DID POST AND ADVERTISE THIS MEETING IN ACCORDANCE WITH THE LAW.

WE WILL NOW CONVENE INTO CLOSED SESSION AS AUTHORIZED BY THE TEXAS GOVERNMENT CODE 551 SPECIFICALLY 0.04 PERSONNEL

[C. CLOSED SESSION]

0.072 REAL PROPERTY 0.071 CONSULTATION WITH THE BOARD'S ATTORNEY AND 0.076 SECURITY.

THE TIME IS 5:30.

[D. RECONVENE INTO OPEN SESSION]

TIME IS 6:37 AND WE WILL NOW RECONVENE INTO OPEN SESSION.

AS NO ONE HAS SIGNED UP TO SPEAK DURING THE PORTION OF THE MEETING, THIS PORTION WILL PROCEED TO THE NEXT ITEM ON OUR AGENDA.

THE NEXT ITEM ON OUR AGENDA IS THE BUDGET WORKSHOP, DR.

[F. BUDGET WORKSHOP]

STINSON. THANK YOU, MR. DILKS. WE WE ARE EXCITED TO BE HERE TONIGHT AND TO BEGIN THE PROCESS WITH YOU.

WHEN I SAY BEGIN THE PROCESS, THIS IS THIS IS, AS YOU KNOW, A LONG TIME COMING FOR US EACH AND EVERY YEAR, MONTHS AND MONTHS OF OF WORK GO INTO PREPARATION FOR THE NEXT YEAR AND EVEN THE NEXT AND THE NEXT DURING THESE TIMES.

AND WE ARE GOING TO GO AHEAD AND GET TO WORK TONIGHT.

KATIE BOWMAN IS HERE TO WALK US THROUGH OUR BUDGET UPDATE FOR 22-23 AND 23-24.

WE WANT TO GET YOU UP TO DATE TO WHERE WE ARE AND LET YOU KNOW WHERE WE'RE HEADED.

SO, KATIE.

OKAY. GOOD EVENING.

SO AS SHE SAID, WE JUST KIND OF WANT TO GIVE YOU AN UPDATE OF WHERE WE'RE WORKING FROM RIGHT NOW.

SOME OF THE STEPS THAT WE'VE TAKEN SO FAR.

TO START OFF, I WAS AT TASBO THE WEEK OF THE 14TH, AND I WANT TO GIVE YOU SOME UPDATED INFORMATION THAT THEY PROVIDED TO US.

SO PROPERTY VALUE STUDY RESULTS CAME IN.

SO IF YOU REMEMBER AND THOSE OF YOU THAT HAVE BEEN WITH ME FOR A LONG TIME, REMEMBER ALL MY FUND SCHOOL FINANCE EXPLANATIONS, BUT PRIOR TO HOUSE BILL THREE PROPERTY VALUES THAT HAD AN IMPACT ON YOUR CURRENT YEAR STATE FUNDING WERE BASED ON WHAT YOUR VALUES WERE THE PRIOR YEAR WITH HOUSE BILL THREE, THEY'RE NOW PART OF OUR CURRENT YEAR.

SO WE JUST GOT THESE.

SO YOU'VE GOT TO THINK ABOUT THE CHALLENGE.

IT IS FOR A DISTRICT TO DO A BUDGET THESE DAYS.

WHEN WE START THE YEAR, WE HAVE NO HARD DATA, NONE AT ALL.

EVERYTHING IS ESTIMATES AND WE DON'T GET OUR PROPERTY VALUE PIECES UNTIL FEBRUARY.

AND THESE ARE JUST PRELIMINARY.

THEY'RE NOT EVEN ACCURATE YET.

WE'LL GET THE FINAL ONE THIS SUMMER WHEN THE YEAR IS OVER.

SO IT HAS DEFINITELY MADE IT CHALLENGING TO DO OUR SCHOOL FINANCE, BUT I THOUGHT YOU'D BE INTERESTED TO SEE THAT STATEWIDE VALUES WENT UP 19%.

THAT'S PRETTY SIGNIFICANT.

RECAPTURE DISTRICTS INCREASE BY ALMOST $1 BILLION, WHICH MEANS THE STATE SAVES IN THEIR BUDGET ALMOST $2 BILLION. SO AS VALUES ARE GOING UP, OBVIOUSLY WE STILL HAVE THE STATE SAVING MONEY FROM THAT.

THE NET SAVINGS, 2.6 I'M SORRY, A STATE AID DROPPED, BUT THEN THERE WAS A TOTAL OF 2.6 BILLION.

THIS WAS A CHART THEY DID.

AND I THOUGHT THIS WAS SO INTERESTING.

SO THINK ABOUT THE FACT THAT WE HAVE PROPERTY VALUES IN THE STATE GOING UP 19%.

SO WHAT THEY'RE SHOWING HERE IS IN TAX YEAR AND TAX YEAR'S THE FALL; RIGHT? SO FROM TAX YEAR 17 TO TAX YEAR 22, THEY'RE BASICALLY SHOWING THE CHANGES.

THE YELLOW IS NOT GOOD.

AND SO IN THE TAX YEAR 22, WHAT YOU'RE SEEING IS THE NUMBER OF DISTRICTS THAT THE STATE IS SAYING YOU'RE NOT UP TO.

MARKET VALUE HAS RISEN SIGNIFICANTLY.

THIS STATE NUMBER RIGHT HERE GOING TO 10%.

SO WHAT THAT MEANS IS THE COMPTROLLER COMES IN AND SAYS, WELL, LOOKING AT THE VALUES THAT THE APPRAISAL DISTRICT GAVE YOU, WE DON'T THINK THOSE ARE CORRECT.

WE THINK YOU SHOULD BE HIGHER.

AND BECAUSE NOW THEY'VE BEEN TWO YEARS LIKE THIS, YOU ONLY GET YOU GET A GRACE YEAR.

BUT BECAUSE YOU'VE BEEN THROUGH THIS TWO YEARS, WE'RE GOING TO PRETEND LIKE YOU TAXED YOUR CITIZENS AT THIS HIGHER RATE.

AND THAT'S WHAT WE'RE GOING TO REDUCE OFF OF YOUR OVERALL REVENUE FOR STATE FUNDING.

SO IT'S AN INTERESTING THING TO ME THAT WE HEAR A LOT FROM THE STATE LEVEL ABOUT HIGH PROPERTY VALUES, BUT THE SYSTEM IS SET UP TO MAKE THEM HIGH BECAUSE IF AN APPRAISAL DISTRICT DOESN'T GET UP TO THE LEVEL THAT THE STATE THINKS THEY NEED TO, THE COMPTROLLER THINKS THEY NEED TO, THEN THAT DISTRICT WILL HAVE LOWER FUNDING FROM THE STATE.

AND THEY YOU CAN ONLY WE CAN ONLY ASSESS THE VALUES WE'RE GIVEN FROM THE APPRAISAL DISTRICT.

SO IT'S A BIG DEAL.

AND A LOT OF WHEN I WAS AT TASBO, THEY WERE SAYING A LOT OF SOME OF THE SMALLER COUNTIES ARE STRUGGLING TO GET TAX ASSESSORS.

[00:05:04]

NO ONE WANTS TO DO IT BECAUSE IN A SMALL COUNTY THERE'S SO MUCH POLITICAL PRESSURE SOMETIMES TO KEEP THOSE VALUES LOW, BUT IT HURTS A SCHOOL DISTRICT SIGNIFICANTLY.

SIGNIFICANTLY. SO DID YOU ALL HAVE A COMMENT? YEAH, YEAH, YEAH.

SO THIS IS.

I'M SORRY, SAY THAT AGAIN.

YOU'RE NOT THERE.

YEAH. YEAH, WE HAD ONE YEAR THAT WE DID NOT MEET VALUE.

OH, YES, SIR. YES, SIR.

WELL AND YOU CAN SEE THE INVALID.

THERE WAS ONLY THE L IS LOCAL, SO THERE WAS ONLY ONE THAT WAS ACTUALLY MORE THAN WHAT THE STATE HAD ASSESSED.

SO I DON'T KNOW WHAT THAT WOULD HAVE BEEN.

BUT ANYWAY, OUT OF OVER 1000 DISTRICTS, IT'S A PRETTY INTERESTING.

BUT YOU CAN SEE THAT THE INVALID FINDINGS HAVE INCREASED SIGNIFICANTLY SINCE 2017.

SO AND I THINK IT'S BECAUSE APPRAISAL DISTRICTS ARE STRUGGLING TO KEEP UP WITH THOSE HUGE INCREASES BECAUSE THERE'S SO MUCH PRESSURE TO NOT DO THAT. SO WE'RE GOOD IN OUR DISTRICT, IN OUR COUNTY.

OUR COUNTY DOES A GOOD JOB WITH OUR TAX VALUES.

SO ALSO SOME INFORMATION.

SO CURRENTLY IN THE BASE HOUSE BILL, IF YOU REMEMBER, MCR MEANS MAXIMUM COMPRESSED TAX RATE.

SO THAT'S THE HIGHEST RATE FOR TIER ONE.

REMEMBER, TIER ONE IS PRIOR TO OUR GOLDEN PENNIES.

THAT'S THE MAXIMUM TAX RATE THAT WE CAN HAVE AS A DISTRICT.

AND REMEMBER, THAT IS SET IN THE SUMMER WHEN WE GET OUR TAX VALUES.

IT GOES THROUGH A CALCULATION WITH TEA AND THEY TELL US WHAT OUR MAXIMUM COMPRESSED TAX RATE.

AND IF YOU REMEMBER FROM THE LAST MEETING WE HAD, THERE'S A RANGE.

SO EVERY DISTRICT HAS A DIFFERENT MAXIMUM COMPRESSED TAX RATE, BUT THERE IS A FLOOR SO THAT THOSE DISTRICTS WITH REALLY HIGH VALUES DON'T HAVE AN UNFAIR ADVANTAGE OVER OTHER DISTRICTS.

SO YOU CAN SEE HERE, 22-23, THE CEILING WAS $0.89, THE FLOOR WAS 80.

AND IN THE BASE BUDGET, THAT CEILING IS GOING TO BE 80.5 CENTS.

AND SO THIS IS INTERESTING TO NOTE IN RIDER 81, WHICH IS BOTH FOR THE HOUSE AND THE SENATE, THERE'S $15 BILLION CURRENTLY SET ASIDE FOR PROPERTY TAX RELIEF.

THE FIRST TWO BULLETS ARE ACTUALLY BUILT INTO THOSE UPDATED MCR NUMBERS.

SO THERE'S 3 BILLION FOR JUST THE REQUIRED PROPERTY TAXES BASED ON VALUE INCREASES.

AND THEN THERE'S ANOTHER 2 BILLION WHERE THEY'RE BUYING DOWN ANOTHER SEVEN AND THREE QUARTER PENNIES.

SO THAT'S JUST OFF THE TOP.

AND THEN YOU CAN SEE THE LAST 9.7 BILLION IS STILL SITTING OUT THERE IN THE BUDGET PROPOSED TO DO ADDITIONAL TAX COMPRESSION.

AND THERE'S SOME DIFFERENCES IN WHAT THE HOUSE AND THE SENATE.

THE SENATE WANTS TO RAISE THE HOMESTEAD EXEMPTION.

THE HOUSE JUST WANTS TO PUT IT DIRECTLY INTO PROPERTY TAX CUTS.

SO THAT BRINGS US TO SOMETHING I THOUGHT WOULD BE GOOD FOR US TO AT LEAST CONTEMPLATE FOR A SECOND.

WHEN YOU LOOK AT THESE PROPERTY VALUE REDUCTIONS, IS IT SUSTAINABLE? AND THAT LAST BULLET, I THINK, IS REALLY IMPORTANT.

FOR EVERY PENNY OF TAX REDUCTION, IT COSTS STATEWIDE $400 MILLION.

AND SO YOU CAN SEE AS THEY'RE DOING THOSE THAT $0.10, THAT'S A LOT OF MONEY.

AND IT HAS TO BE SUSTAINED BECAUSE THE MONEY THAT THEY HAVE RIGHT NOW AT THE STATE LEVEL, SOME OF IT'S NOT FULL TIME MONEY THAT THEY'RE RECURRING THAT THEY'RE GOING TO HAVE.

SO I THINK IT'S JUST INTERESTING TO LOOK AT THAT.

AND THOSE ARE SOME OF THE THINGS WHERE PEOPLE WANT ALL THESE TAX REDUCTIONS.

HOW ARE WE GOING TO FUND THAT, YOU KNOW, ONGOING, ESPECIALLY WITH INFLATION AND THE DIFFERENT CHALLENGES THAT WE HAVE? SO JUST SOMETHING INTERESTING I THOUGHT YOU'D LIKE TO KNOW.

ALSO, IN THE BASE BUDGET, THERE IS AN INCREASE IN THE GOLDEN PENNY YIELD.

AS I'VE MENTIONED TO YOU BEFORE, IT'S REQUIRED TO BE AT THE 96 PERCENTILE OF WEALTH PER WADA.

SO IN MOVING UP, THAT'S GOING TO BE AN INCREASE FOR FISCAL YEAR 24 OF AROUND $0.28 OR $28 AND FOR FISCAL YEAR 25 AROUND 30.

AND I'LL SHOW YOU WHAT THAT LOOKS LIKE FOR US HERE IN JUST A MINUTE.

THIS RIGHT NOW, THERE IS NO BASIC ALLOTMENT INCREASES IN ANY OF THE BILLS AT THE STATE LEVEL.

[00:10:05]

WE'RE STILL DR. STINSON PROBABLY KNOWS MORE THAN I DO BECAUSE OF HER CONVERSATIONS WITH THE COMMISSIONER.

BUT THIS IS JUST SHOWING YOU WHAT IT WOULD COST THE STATE FOR THE DIFFERENT LEVELS.

AND YOU CAN SEE AT OUR CURRENT INFLATION OF 14.5%, YOU GET DOWN THERE, THAT'S 13 BILLION.

SO IT'D BE SOME PRETTY SIGNIFICANT DOLLARS.

WHERE DID YOU GET THE 14.5%? UH, IT'S SOME NUMBERS THAT THEY HAD OVER THE LAST FEW YEARS THAT WE'VE HAD.

I THINK IT'S BEEN SINCE THE LAST COUPLE OF YEARS OF INFLATION AS WE'VE SEEN NUMBERS GO UP.

YOU SAID NO. PARDON ME.

NOT YET. NOT YET.

THEY THINK IT'LL COME IN WITH AN AMENDMENT.

DID YOU HEAR? HAVE YOU HEARD ANYTHING DIFFERENTLY? YEAH. NO, THAT'S WHAT I'M HEARING.

THERE IS SIGNIFICANT DISCUSSION IN THE HOUSE AND THE SENATE ABOUT ADJUSTMENT TO THE BASIC ALLOTMENT.

I THINK THE THE DISCUSSION IS MORE SO OF HOW MUCH AND THEN, OF COURSE.

THE BIGGER DISCUSSION IS WE ALL UNDERSTAND THAT THAT IS A COMPOUNDING ADJUSTMENT.

SO IT'S JUST LIKE IF WE GIVE A RAISE, IT'S COMPOUNDING.

IT'S NOT A ONE TIME.

AND SO OF COURSE THERE ARE DISCUSSIONS ABOUT ONE TIME ADJUSTMENTS, BUT IF YOU ADJUST THE BASIC ALLOTMENT, IT IS A COMPOUNDING FACTOR.

AND SO REALLY THE DISCUSSION, EVERYONE I THINK THERE'S GENERAL AGREEMENT ACROSS THE HOUSE AND THE SENATE THAT THAT IS A GOOD IDEA.

THE DISCUSSION CURRENTLY IS HOW MUCH? SO I WANTED TO GIVE YOU AN UPDATE WHERE OUR GENERAL FUND LOOKS RIGHT NOW.

SO ENROLLMENT YOU SAW THIS LAST TIME.

YOU CAN SEE THAT WE WE DID INCH UP A LITTLE BIT THIS YEAR, WHICH IS REALLY GOOD NEWS.

UM, THE ONLY THING THAT'S CHANGED A LITTLE BIT FROM THE LAST ONE IS OUR ADA AND WADA.

JUST AS WE'VE HAD DIFFERENT ENROLLMENT AND ATTENDANCE NUMBERS CHANGING THROUGHOUT THE YEAR BECAUSE THIS IS MORE CURRENT.

UH, JUST. I ALWAYS LIKE TO GIVE YOU ALL A GRAPHICAL REPRESENTATION JUST TO SEE, YOU KNOW, OUR ENROLLMENT HAS BEEN DECLINING A LITTLE BIT UP THIS YEAR.

WADA HAS BEEN UP JUST A LITTLE BIT.

SO LOOKING AT STUDENT ENROLLMENT INSTEAD OF ATTENDANCE, THAT IS THAT IS WHAT I WOULD SAY, IF NOT THE ONE OF THE MOST PROMINENT DISCUSSIONS IN THIS LEGISLATIVE SESSION.

THERE IS, OF COURSE, THE SCHOOL DISTRICTS IN THE STATE OF TEXAS, YOU KNOW, HAVE A PREFERENCE, BUT THE THE COMMISSIONER DOESN'T SEEM TOO FAVORABLE IN TERMS OF I'M NOT GIVING YOU HIS PERSONAL ASSESSMENT OF IT, BUT IN TERMS OF WHAT HE'S HEARING, HE TOLD US IN OUR LAST MEETING THAT HE IS NOT HEARING A LOT OF A LOT OF FAVORABLE DISCUSSION TO CHANGE IT, THOUGH I THINK THERE IS SIGNIFICANT PRESSURE FOR THEM TO STRONGLY CONSIDER CHANGING IT.

HOUSE BILL 31.

IF YOU HEAR THAT NUMBER.

HOUSE BILL 31.

THAT WE WANT. YEAH.

AND THE NUMBER TELLS YOU THAT IT'S A THAT IT'S A HIGH PRIORITY.

FILED EARLY. LOWER THE NUMBER THE EARLIER THE FILE.

SO I WANTED TO LET YOU SEE KIND OF STUDENT ATTENDANCE.

WE'VE TALKED ABOUT THIS A LOT THIS YEAR.

PRIOR TO COVID, WE HAD BEEN ABOVE 95% ON STUDENT ATTENDANCE, AND THE NUMBERS IN 19-20 AND 20-21 HAVE BEEN ADJUSTED.

THE STATE GAVE US HOLD HARMLESS FOR THAT.

YOU CAN SEE THAT AS WE'VE SEEN BEFORE, WE DID DROP IN 21-22.

AND IF YOU'LL REMEMBER, FOR 22-23, I TOOK OUR AVERAGE PRIOR TO COVID FOR ABOUT EIGHT YEARS AND THEN TOOK A PERCENT OFF.

WE HADN'T BEEN DOING THAT GREAT EARLIER.

BUT I WANT TO SHOW YOU WHERE WE ARE RIGHT NOW.

SO THE INCENTIVES THAT YOU GAVE US IN OCTOBER PROBABLY HAD A LITTLE BIT OF IMPACT ON 36 WEEKS.

BUT LOOK AT FOURTH SIX WEEKS.

SO IF YOU LOOK AT THE FIRST SIX WEEKS WE WERE DOWN BECAUSE MY MY ATTENDANCE PROJECTION IS BY SIX WEEKS.

SO I TOOK THE AVERAGE FOR EIGHT YEARS BY SIX WEEKS, TOOK A PERCENT OFF.

SO. I'M SORRY.

SO WHEN YOU'RE LOOKING AT THE 1% DIFFERENCE, THAT MEANS WE WERE ONE, WE WERE 2% BELOW THE OLD AVERAGE.

BUT AS YOU CAN SEE, AS WE GET DOWN TO THE THIRD SIX WEEKS, WE'RE STARTING TO CLOSE THE GAP AND WE CLOSE THE GAP ON THE FOURTH SIX WEEKS.

SO I WAS PRETTY EXCITED WHEN I PULLED THIS DATA THE OTHER DAY.

SO THAT MEANS THAT OUR INCENTIVES ARE WORKING.

MAYBE WE ARE ACTUALLY IMPROVING KIDS, AND I'M HOPING THAT THE FIFTH AND SIXTH SIX WEEKS WITH CONTINUED PUSHES BY THE CAMPUSES WILL CONTINUE TO SEE THOSE NUMBERS GO UP.

I DON'T KNOW THAT WE'LL GET BACK TO THE NUMBERS WE WERE BEFORE, BUT RIGHT NOW, AT LEAST WE'RE SEEING SOME IMPROVEMENTS.

[00:15:06]

DOES THAT ALL MAKE SENSE? OKAY. YOU KNOW, JUST JUST A QUICK COMMENT ALONG THOSE LINES.

AS YOU KNOW, SEVERAL, MANY YEARS AGO, SEVERAL YEARS AGO, THE TRUANCY LAWS CHANGED AND IT REALLY TOOK THE TEETH OUT OF OF WHAT THE SCHOOL DISTRICTS COULD DO.

AND THERE IS DISCUSSION IN THIS SESSION ABOUT GIVING US SOME OF THAT AUTHORITY BACK.

AND SO THAT COUPLED WITH SOME OF THE THINGS THAT SCHOOL DISTRICTS ARE TRYING TO DO, YOU KNOW, WE HAVE A LITTLE HOPE THAT MAYBE WE HAVE SOME HANDS TO HELP US IN THE FUTURE.

THAT WOULD BE GOOD. STILL NOT PRE-COVID NUMBERS YET? NO, SIR. NO, BECAUSE THESE ATTENDANCE PROJECTION PIECES RIGHT HERE ARE 1% BELOW 1% BELOW THE NORM.

YEAH, WE ARE NOT PRE-COVID IN TERMS OF, YOU KNOW, HISTORICAL ATTENDANCE.

WE ARE NOT AT PRE-COVID LEVELS AND NEITHER IS THE STATE OF TEXAS.

AND I'M NOT SURE, YOU KNOW, IN OUR LAST IN MY DISCUSSIONS IN THE LEGISLATIVE SESSION CONFERENCES AND IN OUR DISCUSSIONS THROUGH OUR STATE GROUPS, WE DON'T KNOW IF WE EVER WILL BE.

UNLESS UNLESS THE LEGISLATURE GIVES US SOME HELP WITH TRUANCY LAWS.

ANY OTHER QUESTIONS ON THAT? OKAY. SO JUST LOOKING AT TAX VALUE AND TAX RATE HISTORY, THE VALUES HAVE BEEN UPDATED.

THEY'VE DROPPED JUST A LITTLE BIT.

WE WERE AROUND 14.3 BACK IN THE FALL.

IT'S DROPPED DOWN JUST A LITTLE BIT, 14.1.

WE'RE STILL ALMOST AT 10%.

SO WE HAD A PRETTY GOOD YEAR.

IF YOU REMEMBER, AS I TOLD YOU AT THE BEGINNING OF THE YEAR WITH THE ADDITIONAL HOMESTEAD EXEMPTION, IF WE HAD NOT HAD THAT INCREASE, WE WOULD HAVE BEEN AROUND 14%.

SO WE HAD A PRETTY GOOD JUMP THIS YEAR.

AND THEN OUR TAX RATE ALWAYS LIKE TO REMIND YOU OF THAT.

WE WE WERE ABLE TO DROP OVER $0.05 IN OUR TAX RATE ALMOST SIX THIS YEAR AND WE'LL SEE FURTHER COMPRESSION NEXT YEAR.

OKAY, SO LET'S START HERE.

THIS IS CURRENT YEAR, UP TO DATE WITH ATTENDANCE, ENROLLMENT AND PROJECTIONS AS WELL AS WE CAN DO TODAY.

SO AS YOU CAN SEE GOING UP, WE'VE GOT THE 9.52% AND WE'VE GOT THE UPDATED ATTENDANCE.

AND WADA THROUGH BELIEVE IT'S THROUGH THE FOURTH SIX WEEKS.

WE'VE GOT OUR TAX REVENUE.

OTHER REVENUE. I'M GOING TO TRY TO DO THIS WITHOUT.

THERE YOU GO. SO I'VE INCLUDED ESSER REVENUE HERE JUST BECAUSE I WANT TO GIVE YOU AN IDEA ABOUT WHAT THE OVERALL BUDGET LOOKS LIKE.

SO THOSE POSITIONS ARE THE SUPPLANTED POSITIONS THAT ARE OVER IN ESSER II AND III, AND WE'LL TALK ABOUT THOSE HERE IN JUST A MINUTE.

BUT I'VE ALSO GOT THEM DOWN HERE, SO I WANT TO MAKE SURE THAT WE CAN TRACK THOSE AS WE GO ACROSS TO THE TO THE OTHER YEARS OF PROJECTIONS.

I'VE ALSO PUT IN THE DENTON HIGHWAY PROPERTY REIMBURSEMENT, AND IT SHOULD BE THE 2022 BOND.

I TYPED THAT IN.

I CAUGHT IT RIGHT BEFORE I CAME OVER HERE.

SO THAT WAY YOU CAN SEE THAT THE PROPERTIES DOWN HERE IN THIS SECTION RIGHT HERE, BUT IT'S ALSO REFLECTED AS A REIMBURSEMENT UP HERE IN THE TOP.

THERE HAVE BEEN A FEW OTHER NUMBERS I'VE BEEN ABLE TO ADJUST.

OUR FEDERAL INDIRECT COST REVENUE HAS GONE UP JUST A LITTLE BIT.

WE'VE BEEN ABLE TO TAKE A LITTLE BIT MORE REVENUE IN THAT.

SO THEN LOOKING AT THAT, THE CURRENT FUND BALANCE CHANGE PROJECTED RIGHT NOW IS AROUND $3 MILLION REDUCTION.

NOTE THAT THIS DOES INCLUDE THOSE PROJECTS THAT WE DIDN'T FINISH LAST YEAR.

SO THE BUDGETS WEREN'T SPENT LAST YEAR THAT WE ROLLED IN JULY INTO THE CURRENT FISCAL YEAR.

I WILL POINT OUT TO THAT IN THE PAYROLL PROJECTIONS UP HERE, WE HAVE UPDATED THOSE BY REDUCING THEM FOR THE FIRST HALF OF THE YEAR.

VACANCIES WE'VE ALLOCATED THE REMAINING VACANCIES FOR THE REST OF THE YEAR IN CASE THOSE POSITIONS GET FILLED.

BUT THERE'S PROBABLY AROUND $2 MILLION OF VACANCIES IN THAT $184 MILLION.

IF THOSE DOLLARS ARE NOT SPENT BECAUSE THE POSITIONS AREN'T FILLED, THEN WE WILL BE ABLE TO REDUCE THAT NUMBER EVEN MORE.

WOULD THERE BE SOME ROLLOVER CHARGES THAT WE DON'T DO THIS YEAR THAT ARE RELEVANT? THAT'S CORRECT. ABSOLUTELY.

AT THE END OF THE YEAR, YES.

SAME AS ABOVE. RIGHT.

MY PREDICTION. MY PREDICTION.

IT WAS 6 MILLION AT THE BEGINNING OF THE YEAR.

ADOPTED BUDGET. ADOPTED BUDGET WAS $6 MILLION DEFICIT.

YES, SIR. 5.9.

PRE-COVID. I WENT BACK AND PULLED SEVERAL YEARS JUST TO GIVE YOU AN IDEA ABOUT OUR UNDER SPENDING.

SO WE TYPICALLY HAVE AROUND 1 TO 2% LEFT OVER FROM OLD PROJECTS, VACANT POSITIONS, PRE-COVID.

THROUGH COVID IS WHEN WE'VE REALLY SEEN A LOT OF THE REDUCTIONS OCCUR.

[00:20:05]

BUT RIGHT NOW, YOU KNOW, THIS IS WHERE WE SIT.

NOW, I DO WANT TO POINT OUT THAT AND I'VE MENTIONED THIS TO YOU GUYS BEFORE BECAUSE OF ESSER III AND THE MAINTENANCE OF EQUITY THAT WE HAVE TO DO WITH ESSER III, I'M GOING TO HAVE TO PUT ALL THE BUDGETS BACK THAT I TOOK OUT FOR TONIGHT AT THE END OF THE YEAR.

NOW, THEY WON'T BE SPENT, BUT THE FINAL AMENDED BUDGET WILL BE HIGHER BECAUSE WE'RE COMPARING YEAR TO YEAR AND WE CAN'T REDUCE IT FOR THESE VACANCIES OR WE WON'T MEET OUR FEDERAL REQUIREMENTS.

SO WE'LL HAVE THAT LATER IN ANOTHER MEETING.

BUT I JUST WANTED TO WARN YOU, YOU ARE GOING TO SEE A BIGGER NUMBER LATER ON.

ALL RIGHT. SO UNDER CURRENT LAW, THIS IS WHAT I'M PROJECTING FOR NEXT YEAR.

SO I'VE GONE TO A 7% PROPERTY VALUE INCREASE.

WE STILL HAVE PROBABLY THREE QUARTERS OF A OF THREE QUARTERS OF $1 BILLION OF PROPERTY CAPS.

AND WITH THE INCREASES THAT THE STATE IS PREDICTING FOR NEXT YEAR, I THINK 7% IS NOT UNREALISTIC.

SO I'VE GONE AHEAD AND ESTIMATED THOSE NUMBERS DOWN USING THE SAME STUDENT INFORMATION.

AS WE GO DOWN, YOU CAN SEE WE STILL HAVE OUR ESSER MONEY BECAUSE WE'VE GOT ONE MORE YEAR OF ESSER THREE AND WE'LL SAY THIS A LITTLE BIT LATER, BUT EVERYTHING WE HAVE IN ESSER II, WE'RE GOING TO BE ABLE TO ROLL UP INTO ESSER III FOR NEXT YEAR SO WE WON'T HAVE TO MOVE ANYTHING BACK TO THE GENERAL FUND FOR THE 23-24 FISCAL YEAR.

YOU'LL SEE OUR BOTTOM LINE HERE LOOKS A LOT BETTER FOR NEXT YEAR.

AND THIS IS CURRENT LAW.

NO NEW LEGISLATION, ANYTHING LIKE THAT.

BUT NOW WHEN WE PULL UP THE OTHER TWO YEARS, AND THIS IS REMEMBER, BEFORE ANY LEGISLATIVE CHANGES, WE HAVEN'T DONE ANY BUDGET CUTS, ANY BUDGET, ANYTHING AT THIS POINT.

BUT WITH THE ESSER MONEY, THE ESSER REVENUE RIGHT HERE IS GONE.

I THINK I HAVE A THING THAT GOES UP.

SO WHAT IT DOES IS IT DOES BRING OUR DEFICIT UP LARGER, BUT THAT'S BEFORE ANYTHING FROM THIS LEGISLATIVE SESSION.

SO NOW LET'S GO TO THE LEGISLATIVE SESSION.

NOW, I WILL SAY THIS. THIS IS BEFORE BASIC ALLOTMENT INCREASES BECAUSE WE DON'T KNOW WHAT THOSE ARE GOING TO BE.

SO WE'RE GOING TO BE REFLECTING THE GOLDEN PENNY CHANGES OF THE PENNIES THAT WE HAVE.

WE HAVE FIVE IN OUR TAX RATE CURRENTLY.

SO YOU CAN SEE THE GOLDEN PENNY FOR NEXT YEAR.

THE RATE SHOULD GET US RIGHT UNDER $4 MILLION, WHICH IS GOOD NEWS.

AND THEN THERE'S A SLIGHT INCREASE IN 24-25.

AND I'VE JUST MODELED THAT IN THE NEXT YEAR.

SO WE'RE LOOKING AT ABOUT 4.4, 4.5 THE NEXT TWO YEARS.

SO USING THE SAME INFORMATION, YOU CAN SEE THAT RIGHT NOW WE'RE PREDICTING WITH BEFORE WE DO ANY BUDGET TRIMMING REDUCTIONS, ANYTHING, WE'VE GOT MONEY AVAILABLE OF ABOUT 3.6 MILLION.

SO THAT'S GOOD NEWS.

AND THE OTHER YEARS, WE KNOW THAT, YOU KNOW, THAT ESSER MONEY IS GOING AWAY, BUT AT LEAST IT'S THE NUMBERS DROPPING.

SO WE'RE HOPING AS WE SEE MORE LEGISLATIVE REVENUE COMING IN, THAT WE'LL CONTINUE TO SEE THAT IMPROVE.

DID YOU HAVE A COMMENT, DR. STINSON? OH, I'M SORRY. OKAY.

WHY ARE YOUR EXPENDITURES? BECAUSE WE HAVEN'T REQUESTED ANYTHING YET.

THEY WILL NOT BE FLAT.

WE KNOW WE HAVE THINGS COMING.

I HAD ORIGINALLY PUT SOME ESTIMATES IN TO GROW IT, BUT I THOUGHT, I'M JUST GOING TO WAIT FOR THE INITIATIVES WHEN WE BRING THOSE TO YOU BECAUSE YOU KNOW, THEY'LL HAVE THOSE REQUIRED INITIATIVES THAT WE USUALLY GIVE YOU THAT LIKE INSURANCE AND DIFFERENT THINGS LIKE THAT.

BUT AT THIS POINT, I JUST, IF WITH NOTHING ELSE, THIS IS JUST A REVENUE CHANGE.

WE DO KNOW THAT IT'S GOING TO HAVE TO GO UP.

THAT'S RIGHT. BUT I WANTED YOU TO SEE WHAT WE HAVE AVAILABLE FOR ANYTHING THAT WE'RE GOING TO HAVE TO PUT IN THE BUDGET.

SO RIGHT NOW, BEFORE WE GET BASIC ALLOTMENT INCREASES OR ANYTHING ELSE, THAT'S WHERE WE ARE.

YES, SIR. NO, NO, YOU'RE FINE.

COULD YOU GO OVER THE DIFFERENCE BETWEEN THOSE LAST TWO SLIDES AGAIN? YES, SIR. SO IF WE GO BACK TO THE PREVIOUS SLIDE, THIS IS BEFORE ANY LEGISLATIVE CHANGE.

SO IF THE LEGISLATURE WASN'T MEETING AND THERE WAS NO ADDITIONAL REVENUE, THIS IS WHAT OUR BUDGET WOULD LOOK LIKE WHEN WE GET HERE.

AND I'LL MAKE, I'LL PULL IT ALL UP.

THE GOLDEN PENNY IS AFTER LEGISLATION.

PARDON ME. THE GOLDEN INCREASE IS THE GOLDEN PENNY INCREASES AFTER.

THAT'S. THAT'S RIGHT. THAT'S THE DIFFERENCE.

IS THAT LINE RIGHT THERE, THE GOLDEN PENNY.

YES, SIR. AND THIS IS THIS IS FOR THE FIVE PENNIES THAT WE CURRENTLY HAVE IN OUR TAX RATE.

I DIDN'T REALIZE.

I DIDN'T REALIZE ANYTHING.

ACTION ON THAT. I THOUGHT THAT GOLDEN PENNY JUST WENT UP ON SOME FORMULA.

BUT IT'S SUPPOSED TO, BUT IT HAS TO BE FUNDED IN THE BILL.

SO THE LAST TWO YEARS THEY HAVE NOT RAISED IT.

WE'VE HAD THAT. IT USED TO BE IT USED TO BE BASED ON THE AUSTIN YIELD, WHICH WAS REALLY NICE BECAUSE AUSTIN'S PROPERTY VALUES ARE REALLY HIGH.

AND THEN IN HOUSE BILL THREE, THEY PUT IN A FLAT AMOUNT, BUT IT'S SUPPOSED TO BE TRIGGERED AGAINST THE 96 PERCENTILE OF WEALTH PER WADA,

[00:25:04]

BUT IT HASN'T BEEN CHANGING.

SO THEY HAVE TO PUT THE MONEY IN FOR THE BUDGET.

SO THAT'S WHY IT'S THERE.

IT'S REQUIRED TO BE THERE, BUT WE HAVEN'T SEEN THOSE INCREASES, SO THEY HAVE TO FUND IT.

MRS. BOWMAN, BEFORE YOU MOVE ON, PARDON ME, BEFORE YOU MOVE ON THE LAST SLIDE, I WAS JUST OUT OF CURIOSITY, I WAS LOOKING AT THE DIFFERENCE FROM 22-23 TO 23-24, THE SUPPLIES DROPPED 1.8 MILLION.

YES, BECAUSE 22-23 IS OUR AMENDED BUDGET.

SO IT'S ANY CHANGES.

WE'VE MADE. ANY ADDITIONS, THE ROLLED OVER BUDGETS, ANYTHING THAT WE'VE HAD IN THE BUDGET THAT CHANGED.

SO WHAT I DID IS I WENT BACK TO ADOPTED BUDGET FOR 23-24 AND ON BECAUSE I KNOW THOSE ARE THE NUMBERS THAT ARE PRETTY CLOSE TO WHAT WE'VE BEEN USING.

THAT'S A GOOD QUESTION. YEAH.

OKAY. ANY QUESTIONS ON THIS ONE? OKAY. OKAY.

SO BUDGET CONSIDERATIONS, JUST SOME ADDITIONAL INFORMATION FOR YOU TO KNOW.

$100 CHANGE IN THE BASIC ALLOTMENT WILL GENERATE ABOUT 2.85 MILLION FOR BIRDVILLE.

AND IF YOU REMEMBER, ANY CHANGE IN THE BASIC ALLOTMENT, AT LEAST IN CURRENT LAW, 30% OF THAT HAS TO BE SPENT ON NON ADMINISTRATIVE PAY RAISES AND A PORTION OF THAT IS FOR TEACHERS AND A PORTION FOR OTHERS.

BUT JUST KNOW THAT ANY INCREASES WE GET, WE WILL HAVE TO DOCUMENT TO THE STATE THAT WE'VE GIVEN THAT MUCH, AT LEAST THAT MUCH OF A RAISE TO OUR TEACHERS AND OTHER NON ADMINISTRATIVE POSITIONS.

YOU KNOW, IN ALL OF THE MEETINGS THAT I'VE BEEN IN, I REALLY HAVEN'T.

YOU KNOW, WHO KNOWS WHAT WILL HAPPEN UNTIL AN ACTUAL VOTE TAKES PLACE.

BUT I HAVEN'T SEEN ANYTHING IN DISCUSSIONS OF LESS THAN $200 CHANGE IN THE BASIC ALLOTMENT.

SO I'M VERY HOPEFUL THAT THAT'S DIFFERENT.

YES. 200 STILL KEEPS US SHORT.

I MEAN, WE NEED AT LEAST 3OO IN 22-23, OR 24-25 TO START BREAKING EVEN.

YEAH. OKAY.

THAT 200 HAPPENS.

IT'S. 5.6 MILLION.

30% OF THAT GOES TO PAY RAISES 1,500,000.

I'M DOING FAST MATH IN MY HEAD.

RALPH, HELP ME OUT HERE.

YOU'RE. THEY KEEP SAYING, I'VE READ THEY'RE GOING TO GET $15,000 RAISE TO TEACHERS.

WOULD THAT BE PART OF THAT SAME.

DOLLARS OR IS THAT EXTRA DOLLARS? IT JUST DEPENDS ON HOW THEY DO SOMETHING.

I MEAN, I DON'T KNOW THAT 15,000 IS GOING TO BE FEASIBLE FINANCIALLY.

IT JUST DEPENDS ON HOW WHAT BILLS GET PASSED.

SO RIGHT NOW, THIS IS AN AUTOMATIC INCREASE THAT WOULD HAVE TO COME INTO PLAY.

NOW IF WE HAD ALLOTMENT CHANGES, RIGHT, IF THE ALLOTMENT CHANGES.

BUT EVERY ONE OF THOSE STATEMENTS, IT DEPENDS ON HOW THE BILL IS IS PUT TOGETHER.

SO. DID YOU HAVE SOMETHING ELSE TO PUT US IN? IF THEY MAY NOT FINISH THAT TILL END OF MAY.

WE HAVE TO DUMP THE BUDGET.

IT WILL BE WATCHING IT VERY CAREFULLY.

SO HOPING WE'LL HAVE ENOUGH INFORMATION TO AT LEAST MAKE OUR ESTIMATES.

AND WE HAVE SOME REALLY GOOD SUPPORT FROM OUR ORGANIZATIONS.

SO. THANK YOU.

IT MAKES ME THANKFUL THAT WE HAVE YOU WATCHING IT CLOSELY.

THANK YOU. OH, THANKS.

JUST FOR YOUR INFORMATION, 1% COMPENSATION INCREASE IS GOING TO BE AROUND $1.95 MILLION.

AND THEN JUST LETTING YOU KNOW AND WE'LL SHOW THE ESSER HERE IN JUST A MOMENT.

REMIND YOU ABOUT THAT. BUT AS WE'RE FINISHING UP ESSER NEXT YEAR, WE THINK WE MAY HAVE BETWEEN 2 AND $3 MILLION IF THE BOARD WANTED TO DO A ONE TIME, AND WE HAVE TO CALL IT FOR FEDERAL PURPOSES, RETENTION INCOME WANTED TO DO THAT.

THAT MIGHT BE AVAILABLE TO YOU AS WELL.

SO THAT COULD BE AN OPTION TO DO SOMETHING IN THE FALL.

SO. SIR.

IF WE WANTED TO GIVE A RETENTION PAYMENT TO EMPLOYEES.

SO SAY IF YOU STAY WITH US, YOU KNOW YOU'LL GET $500 IN OCTOBER OR SOMETHING LIKE THAT.

IF YOU WANTED TO, WE COULD PAY IT OUT OF FEDERAL DOLLARS, JUST LETTING YOU KNOW WE HAVE THAT MONEY AVAILABLE.

WELL, YOU HAVE IT AVAILABLE, BUT YOU'RE GOING TO BE UPSIDE DOWN AND YOUR TOTAL REVENUE AND EXPENSES.

THIS IS FEDERAL. SO THIS IS THIS IS ON THE FEDERAL SIDE AS A REVENUE STREAM, CORRECT? IT'S ABOVE THE LINES IN REVENUE.

SO YOU'RE GOING TO SPEND IT DIFFERENTLY? NO, THIS IS ESSER MONEY.

SO. YEAH. OKAY.

I UNDERSTAND THAT. LET'S GO BACK SO WE'RE LIMITED ON WHAT WE CAN SPEND IT ON, RIGHT? THAT'S CORRECT. NOW, THE 9 MILLION IS NOT PART OF THE MONEY WE WILL HAVE LEFT OVER.

WE HAD. AND I'VE GOT TO.

WHAT? LET ME LET ME GET TO THOSE ESSER SLIDES AND WE'LL THAT'S THAT'S A DIFFERENT A DIFFERENT AMOUNT OF MONEY.

THE 9 MILLION THAT'S THERE THAT'S ALREADY BEEN TAKEN OUT OF ESSER.

BUT WE THINK WHEN WE FINISH ESSER NEXT YEAR, WE'RE GOING TO HAVE ABOUT 3 MILLION LEFT OVER.

AND SO THE BOARD WANTED TO A LOT THAT TO SOME KIND OF A RETENTION PAYMENT OF SOME SORT.

THEN WE COULD IF NOT, WE'LL JUST SUPPLANT MORE JOBS.

[00:30:02]

WHY WOULD WE HAVE IT LEFT OVER IF IT'S INTENDED TO BE FOR CERTAIN FUNCTIONS? WHY THE FEDS GAVE IT TO US.

AND PART OF THAT INTENTION IS TO MAKE SURE THAT WE HAVE STAFF.

SO THAT'S A LOT OF DISTRICTS HAVE USED IT FOR THAT.

IT'S AN ALLOWABLE EXPENSE.

WE CHOSE WE ADDED A LOT OF STAFF AND I'VE GOT THAT SLIDE HERE IN JUST A MINUTE.

WE'VE ADDED A LOT OF STAFF FOR SUPPORT AND TO HELP WITH INSTRUCTION, AND WE'VE DONE THE MENTAL HEALTH, BUT WE'VE ALSO SUPPLANTED, AS I JUST SHOWED YOU, WE'VE SUPPLANTED ALMOST $10 MILLION TO HELP OFFSET THE LOSSES THAT WE HAD IN OUR GENERAL FUND.

SO ALL OF THAT'S ALLOWABLE AND STAFF RETENTION IS ONE OF THE THINGS.

WHAT DO THEY CALL IT IN THAT IT'S NOT STAFF RETENTION.

THEY CALL IT SOMETHING IN ESSER.

ANYWAY, JUST THE CONTINUITY OF STAFF.

SO IT IS AN OPTION.

IF NOT, WE WILL SUPPLANT OTHER POSITIONS AND THEN THAT FREES UP MONEY IN THE GENERAL FUND.

THOSE POSITIONS THAT ARE BEING PAID THAT WE ADDED OUT OF ESSER FUNDS, THEY'RE GOING TO RUN OUT THIS NEXT FISCAL YEAR.

YES, JUST GO AWAY.

OR DO WE ABSORB THEM IF WE CAN? I'VE GOT THAT ON A SLIDE COMING UP.

IF YOU'LL GIVE ME JUST A SECOND, WE'LL GET TO THAT.

SO IN BUDGET PREPARATION, WE'VE BEEN WORKING FOR SEVERAL MONTHS ON STAFFING REVIEW, LOOKING AT STAFFING RATIOS, WAYS TO MAXIMIZE FUNDING.

DR. GLENN HAS BEEN LOOKING AT ALL OF OUR FEDERAL FUNDS AND WE'RE JUST TRYING TO SEE WHERE WE MIGHT HAVE CAPACITY TO PICK UP JOBS IN THE FROM THE ACTUALLY FROM ESSER AND THE GENERAL FUND IN SOME OF OUR FEDERAL PROGRAMS SO WE CAN REDUCE OUR GENERAL FUND EXPENDITURES.

WE'VE BEEN LOOKING AT PROGRAMS THAT HAVE LOW STUDENT ENROLLMENT TO LOOK AT THE VIABILITY OF THOSE PROGRAMS. AND THEN WE'RE ALSO, AS WE HAVE STAFF LEAVE, WE'RE LOOKING TO DO THOSE JOBS.

REALLY, ARE THEY CRITICAL? CAN THEY BE ELIMINATED? AND IT GIVES US OPPORTUNITIES TO TRIM THE BUDGET DOWN.

NONE OF THE STUFF WE'VE BEEN WORKING ON IN STAFFING REVIEW HAVE BEEN REFLECTED IN THOSE BUDGET NUMBERS YET.

SO WE'RE STILL WORKING ON THAT.

HERE'S AN EXAMPLE.

I JUST WANTED TO LET YOU KNOW SOMETHING WE ARE WORKING ON.

SO AS YOU KNOW, WE'VE BEEN HAVING A REALLY DIFFICULT TIME HIRING AND KEEPING CUSTODIANS.

WE HAVE OVER 40 VACANCIES RIGHT NOW.

AND SO BACK BEFORE COVID, WE HAD NIGHT CUSTODIANS AT THE ELEMENTARY AND MIDDLE SCHOOL.

WHEN COVID HAPPENED, WE MOVED SOME OF THOSE HOURS DOWN INTO THE SCHOOL DAY SO THAT THEY COULD DO MORE SANITIZING WHERE WE WERE SPRAYING ROOMS AND THOSE TYPES OF THINGS.

WELL, WE'RE AT A POINT NOW WHERE WE CAN MOVE THOSE POSITIONS BACK, AND I THINK OUR FACILITIES DEPARTMENT HAS DECIDED WE'RE NOT GOING TO BE ABLE TO FILL ALL 40 OF THOSE JOBS.

SO WE'RE LOOKING AT A WAY TO REDUCE THE CUSTODIAL STAFF AND MOVE THE NIGHT CUSTODIANS BACK TO THE TIME WHEN SCHOOL IS CLOSED SO THEY CAN ACTUALLY DO MAXIMIZING ON THEIR CLEANING TIME.

AND THEN HOPEFULLY WE THINK WE MAY BE ABLE TO CUT ABOUT 15 CUSTODIAL POSITIONS.

SO THAT'S GOING TO HELP US WITH A REDUCTION IN THE BUDGET.

WE CAN'T HIRE THEM ALL ANYWAY, AND WE THINK A LOT OF THEM LIKE TO WORK AT NIGHT BECAUSE THEY CAN HAVE A DIFFERENT JOB DURING THE DAY.

AND THE SCHEDULES WE'VE HAD DURING COVID HAVE NOT BEEN REALLY CONDUCIVE TO THAT.

SO WE FEEL LIKE THAT'S GOING TO BE A REALLY POSITIVE WAY TO TRIM BACK SOME STAFF FOR NEXT YEAR.

DO YOU EVALUATE ALSO WHAT DOES IT COST US FOR? FIVE HOURS A WEEK OF OVERTIME FOR THE EXISTING GUY COMPARED TO THE FULL TIME THAT YOU CAN'T HIRE.

WE ARE LETTING, WE HAVE BEEN WORKING OVERTIME BECAUSE WE HAVE NO CHOICE, BECAUSE OF JUST THE DEMANDS.

BUT WE'RE GETTING FROM A LOT OF OUR STAFF.

THEY'RE TIRED AND THEY DON'T WANT THE OVERTIME.

THERE ARE TIMES WHEN WE'LL HAVE A RENTAL ON A WEEKEND AND WE HAVE TROUBLE FINDING A CUSTODIAN THAT WANTS TO WORK, EVEN THOUGH THEY'RE GETTING PAID OVERTIME BECAUSE THEY'RE JUST TIRED. MORE BUDGET PREPARATION.

I WANTED YOU TO KIND OF SEE THIS.

THIS IS A HISTORY WITH OUR SYNERGISTIC COMPANY THAT WE STARTED IN JANUARY OF 2015.

SO THESE ARE CALENDAR YEARS.

BUT YOU CAN SEE, I REALLY THINK IT'S INTERESTING THAT WE HAD 3.7, THREE POINT 8,000,000FT² OF BUILDING.

AND SINCE THEN WE'VE BUILT NEW BUILDINGS THAT WERE LARGER.

AND SO WHEN YOU COME DOWN TO 22, WE HAVE 4.6 MILLION, BUT OUR COSTS HAVE NOT GONE UP A LOT, WHICH IS GOOD.

SOME OF THESE LOWER YEARS ARE YEARS WHERE WE HAD THE BUILDINGS CLOSED FOR COVID, SO WE WERE ABLE TO SAVE MONEY THERE.

AND THEN WE'VE HAD A LITTLE BIT OF A BUMP UP THE LAST CALENDAR YEAR.

WE'VE HAD INCREASES IN GAS PRICES, WATER BILLS, AND THEN WE'RE JUST USING OUR BUILDINGS MORE SO, BUT WE'RE STILL DOING REALLY WELL WITH THE SYNERGISTIC. YOU CAN SEE IT'S BEEN A PRETTY SIGNIFICANT, PRETTY SIGNIFICANT HELP TO US.

SO. AND THEN OUR ENERGY USAGE HAS DROPPED FROM 36,000,000KW TO 32.5 SINCE 2015.

SO THAT YOU KNOW, THE DOLLAR AMOUNT EACH YEAR AND REALLY KIND OF THE KILOWATTS TO A LOT IS DEPENDENT UPON THE WEATHER BECAUSE YOU CAN'T REALLY CONTROL THEY KIND OF NORMALIZE

[00:35:08]

EVERYTHING. BUT BUT IT IS GOOD TO SEE THAT WE HAVE HAD SOME SIGNIFICANT DROPS IN THE ACTUAL USAGE OF KILOWATTS.

YOUR SQUARE FOOTAGE YOU'VE ADDED SINCE 2015 AND WE'RE FIXING TO ADD SOME MORE.

BUT THE BUILDING, THE NEW BUILDINGS ARE MORE ENERGY EFFICIENT, RIGHT? RIGHT. ABSOLUTELY.

ABSOLUTELY. SO MUCH HIGHER.

IT'S TRUE. WE NEED THAT OFFSET.

YEAH. SO.

SO I PULLED THIS OUT OF SOME DOCUMENTATION THAT TASBO PROVIDED.

JUST KIND OF A HISTORY.

AND THIS IS ALL DISTRICT STAFF IN OCTOBER BECAUSE WE DO OUR OCTOBER SNAPSHOT FOR PEIMS AND THEN YOU HAVE THE PERCENTAGE OF THE CATEGORIES.

SO I THOUGHT IT WAS INTERESTING TO KIND OF SHOW YOU WITH TEACHERS AS OUR ENROLLMENT HAS DROPPED, OF COURSE THE PERCENTAGE OF TEACHERS HAS GONE DOWN SOMEWHAT.

PROFESSIONAL SUPPORT, YOU CAN SEE, HAS RISEN A LITTLE BIT.

THIS IS CLASSROOM SUPPORT AND THAT'S MAINLY FROM THE ESSER FUNDS THAT WE'VE ADDED.

A LOT OF THOSE POSITIONS THAT HAVE HELPED SUPPORT TEACHERS AND PROVIDE STAFF DEVELOPMENT.

THIS IS A NICE ONE I LIKE.

CENTRAL ADMINISTRATION HAS DROPPED TO 1%, SO THAT'S REALLY ENCOURAGING.

AND THEN YOU CAN SEE WE'RE PRETTY STEADY WITH OUR CAMPUS LEADERSHIP, OUR EAS AND INTERPRETERS, AND THEN OUR AUXILIARY STAFF HAS DROPPED A LITTLE BECAUSE WE CAN'T HIRE STAFF. SO.

ALL RIGHT. ESSER.

DR. GLENN. PUT JUST A SLIDE TOGETHER TO REMIND YOU ABOUT ESSER.

SO, ESSER II, WE HAD AN INITIAL ALLOCATION OF 17.3 MILLION.

THE FIRST YEAR OF ESSER TO THE STATE ACTUALLY TOOK MONEY OUT OF THIS TO DO THEIR OWN HOLD HARMLESS.

SO WE HAD NO CONTROL.

I BELIEVE IT WAS ABOUT $5 MILLION THAT FIRST YEAR.

THEN THE SECOND TWO YEARS WE'VE USED STRICTLY TO SUPPLANT POSITIONS TO THE GENERAL FUND.

SO THIS IS PART OF THAT 9 MILLION THAT YOU SAW ON THE OTHER SLIDE.

THESE COSTS, THANKFULLY, WE WILL HAVE ENOUGH ESSER III FOR NEXT YEAR TO ABSORB THOSE INTO THAT ESSER III BUDGET AND THEN ESSER III, OUR INITIAL ALLOCATION WAS 39 MILLION 23-24 THROUGH SEPTEMBER.

RIGHT. WILL BE THE FINAL YEAR.

23 YEAH. 23-24 SORRY, WILL BE THE FINAL YEAR.

WE'VE BEEN SUPPLANTING ABOUT 4.4 MILLION IN JOBS.

SO THE, THE ESSER II AND THE ESSER III IS THAT 9 MILLION THAT YOU WERE LOOKING AT ON THE EARLIER SLIDE, WE DID ADD 44 NEW POSITIONS OF ABOUT 2.5 MILLION.

AND YES, THOSE PEOPLE, WHEN THEY WERE FIRST HIRED, UNDERSTOOD THAT THEY HAD A JOB FOR THREE YEARS.

BUT WHAT WE'VE DONE IS SKIP HAS HAD JOBS AVAILABLE.

PEOPLE HAVE BEEN OFFERED THE OPPORTUNITY TO MOVE INTO PERMANENT JOBS.

SO, I MEAN, WE'RE STILL HOPEFUL THAT WE MIGHT HAVE OPPORTUNITY TO TO PROVIDE SOME STUFF.

ONE THING WE'LL POSSIBLY SEE IS.

TO TAKE ANOTHER JOB BECAUSE THEY KNOW THEIR POSITION IS BEING ELIMINATED NEXT YEAR.

SO WE'RE. WE'VE COMMUNICATED THAT.

SO WE REALLY, THEY REALIZE THAT THEIR JOB HAD A SHORT SPAN OF TIME.

SO IF THEY'RE ABLE TO FIND ANOTHER JOB IN THE DISTRICT OR OUTSIDE THE DISTRICT, THEN WE WE THAT'S HOW WE'RE ALSO REDUCING THIS AS QUICKLY AS POSSIBLE THROUGH ATTRITION.

CAN WE GET A BREAKDOWN OF WHAT THOSE 44 JOBS WERE? ARE THEY ALL IN CLASSROOMS? WE HAVE IT ON THE WEBSITE.

SO THEY'RE PRETTY GOOD PAYING JOBS BECAUSE THAT'S AN AVERAGE OF ALMOST $60,000 A JOB.

YEAH, GO AHEAD. YOU WANT TO.

WE'VE HIRED MATH INTERVENTIONIST INSTRUCTIONAL COACHES, CRISIS COUNSELORS AT THE ELEMENTARY SCHOOL, A TRAUMA SPECIALIST, BEHAVIOR FACILITATORS.

AND THEN DID I SAY MATH INTERVENTIONIST? MATH INTERVENTIONIST.

THOSE ARE THE MAJORITY OF THE NEW JOBS.

AND SO YOU ASKED A QUESTION EARLIER ABOUT THE THE RETENTION POSSIBILITY.

PART OF THAT COMES FROM AS THESE POSITIONS HAVE VACATED, WE ALREADY HAVE A COUPLE OF THEM THAT WE HAVEN'T REFILLED.

SO THAT MONEY KEEPS ADDING UP OVER TIME.

SO THAT WILL BECOME THAT RETENTION CAPABILITY.

THE OTHER THING IS WE WE HAVE BUDGETED FULLY FOR TUTORIALS AND BUSSING, AND WE HAVE SEEN FOR THE PAST YEAR THAT THE USAGE WAS AT ABOUT HALF OF OUR BUDGET.

SO WE'VE KEPT THE FULL BUDGET IN FOR THE NEXT TWO YEARS, BUT THERE MAY BE A USAGE AGAIN AT ABOUT HALF OF THAT.

AND SO ONCE WE SEE WHERE OUR CAMPUSES USAGE FALLS, THAT WILL BETTER GIVE US A BETTER IDEA OF WHAT MONEY IS AVAILABLE FOR THAT RETENTION RIGHT IN THOSE POSITIONS ARE AROUND 60,000 BECAUSE OUR STARTING SALARY IS 58.5 AND WE'RE NOT HIRING FOLKS RIGHT AT THE BEGINNING.

[00:40:03]

BUT ONCE YOU ADD BENEFITS IN THERE, THAT'S WHY YOU GET THAT THAT AROUND $60,000 PRICE TAG SOMEWHERE AROUND THERE AND THERE IS AN ADDITIONAL TRS WITHHOLDING AMOUNT FOR FEDERAL. SO IT INCREASES IT AN ADDITIONAL PERCENTAGE.

I JUST WANT TO MAKE SURE THAT THE FUNDING RUNS OUT.

THE NEED FOR MATH INTERVENTIONIST IS NOT GOING TO RUN OUT.

RIGHT. WELL, THESE WERE ADDITIONAL THAT WE ADDED.

WE HAVE THEM. WE HAVE THEM STAFFED OTHER PLACES.

SO, RICHARD, YOU'RE EXACTLY RIGHT.

AND THAT'S THAT'S THE PAIN POINT OF ESSER MONEY THAT, YOU KNOW, THE MONEY FEDERAL MONIES GIVEN TO SCHOOL DISTRICTS TO TO HELP US RECOVER FROM FROM THE PANDEMIC.

AND THEY ONLY GAVE US THREE YEARS TO RECOVER.

AND WE ALL KNOW THAT IT'S GOING TO TAKE AT LEAST A DECADE.

AND SO THEREIN LIES THE PAIN, BECAUSE WE KNOW THAT WE STILL NEED SOME OF WE STILL NEED THAT RECOVERY HELP, YOU KNOW, AS A NATION AND AS A STATE.

BUT THE MONIES, THE MONEYS WILL BE GONE.

SO THAT'S THAT'S THAT'S THE PART THAT.

BUT YOU'RE EXACTLY RIGHT.

THERE ARE MANY OF THOSE SERVICES THAT ARE STILL NEEDED.

AND SO WE WILL ANALYZE AND WORK.

AND I KNOW THAT ALL SCHOOL DISTRICTS ARE DOING THAT RIGHT NOW TO PRIORITIZE AND SEE WHAT YOU KNOW, WHAT WHAT HOW BEST TO TO UTILIZE WHAT'S LEFT IN THE NEXT YEAR AND THEN HOW TO LIVE WITHOUT IT IN THE YEARS TO COME.

OR HOW TO FIND NEW REVENUE SOURCES.

EXACTLY. THAT'S EXACTLY RIGHT.

ANY OTHER QUESTIONS ON ESSER? ALL RIGHT. I WANTED TO UPDATE YOU A LITTLE BIT AND DR.

GLENN PUT SOME INFORMATION TOGETHER FOR ME AS WELL ON THE STATE COMPENSATORY EDUCATION.

SO THIS IS PART OF OUR GENERAL FUND.

IT'S THE MONEY WE GET BASED ON THE NUMBER OF FREE AND REDUCED LUNCH STUDENTS THAT WE HAVE ACTUALLY AT OUR SNAPSHOT IN OCTOBER.

SO IF YOU REMEMBER LAST YEAR, WE WERE STRUGGLING TO GET PARENTS TO SIGN UP FOR FREE AND REDUCED BECAUSE LUNCHES WERE FREE.

AND SO WE WERE ONLY A LITTLE OVER 13,000 WHEN WE FINALLY HAD TO FILE OUR PEIMS. WELL, THIS YEAR WE'RE UP TO ABOUT 14,003.

SO THAT HAS RAISED THOSE FUNDS, WHICH IS REALLY WHICH IS A REALLY GREAT THING.

THE NEGATIVE ABOUT THE WAY SOME OF OUR SCHOOL FUNDING WORKS THOUGH, IS THESE ARE FUNDED WITH A BASIC ALLOTMENT PIECE.

SO THE WAY THE STATE DOES IT IS THEY TAKE MONEY OFF OF OUR REGULAR EDUCATION ALLOTMENT TO FUND THIS.

SO IT DOES HURT US EXTRA MONEY.

IT'S A LITTLE BIT 20% EXTRA.

BUT THEY GIVE A WEIGHT ON IT, BUT THEY PULL THE MONEY OUT OF THE REGULAR EDUCATION.

SO AND THE PROBLEM AS WELL IS IT'S BASED ON AT RISK SERVICES.

SO EVERY YEAR THERE'S A LITTLE BIT DIFFERENT AMOUNT THAT WE HAVE TO SPEND.

SO SOMETIMES IT'S CHALLENGING BECAUSE IT'S NOT EXTRA MONEY TO TAKE CARE OF THAT.

55% OF THE ALLOTMENT HAS TO BE SPENT ON DIRECT PROGRAM NEEDS.

AND SO THAT'S SOMETHING THAT WE WATCH VERY CAREFULLY TO MAKE SURE THAT WE HAVE PEOPLE ACTUALLY SERVING.

AND SHE PUT SOME SLIDES IN HERE.

I'M NOT GOING TO GO THROUGH ALL OF THIS.

THERE'S 15 AND I THINK YOU'VE SEEN THEM WITH MONICA'S ACCOUNTABILITY PRESENTATION BEFORE ABOUT THE 15 CRITERIA FOR AT RISK.

SO I'M NOT GOING TO GO THROUGH ALL OF THESE, BUT BASICALLY IT'S STUDENTS WHO ARE AT RISK OF NOT GRADUATING OR NOT STAYING IN SCHOOL.

SO THERE'S JUST DIFFERENT CATEGORIES OF IT.

BUT WE HAVE TO DOCUMENT THESE STUDENTS AND MAKE SURE THAT WE ARE SERVING THEM.

AND THEN AS SHE MENTIONED FOR ESSER, HERE ARE THE TYPES OF POSITIONS THAT WE CAN SPEND STATE COMPENSATORY EDUCATION ON INSTRUCTIONAL COACHES, INTERVENTIONIST, EAS, TRUANCY OFFICERS, SUPPLEMENTAL COUNSELORS, AVID TEACHERS AND CREDIT RECOVERY.

AND SO YOU CAN YOU CAN IMAGINE AS THOSE DOLLARS GROW AND WE LOSE REGULAR ED MONEY, WE HAVE LESS TO SPEND ON OUR REGULAR TEACHERS AND THEN WE HAVE TO SPEND MORE ON THIS.

SO THE DYNAMICS EACH YEAR OF MAKING SURE WE'RE SPENDING ENOUGH IS VERY CHALLENGING BECAUSE IT'S NOT A SEPARATE ALLOTMENT THAT WE RECEIVE.

SPECIAL EDUCATION.

AND MS. STILLER IS HERE TONIGHT.

AND SHE HAD PUT SOME DATA TOGETHER SIMILARLY, I CAN'T SPEAK TONIGHT.

SORRY ABOUT THAT. SO THIS AGAIN, IS A GENERAL FUND PIECE.

WE DO HAVE SOME FEDERAL FUNDS FOR SPECIAL EDUCATION, BUT WE JUST WANTED YOU TO GET A LITTLE BIT OF A LOOK AT HOW THESE NUMBERS ARE GROWING.

SPECIAL EDUCATION IS ALSO FUNDED BASED ON THE DIFFERENT TYPES OF SPECIAL ED STUDENTS THAT WE HAVE.

AND AS THE NUMBERS GROW, THAT BASIC ALLOTMENT ONCE AGAIN IS PULLED OUT OF REGULAR EDUCATION.

WE GET SOME WEIGHTS ON IT, BUT IT DOES REDUCE THE AMOUNT OF MONEY THAT WE HAVE FOR OTHER SERVICES IN THE DISTRICT.

AND AGAIN, 55% MUST BE SPENT.

I HATE TO TELL YOU THIS, BUT WE SPEND BETWEEN 130 AND 150% OF WHAT WE ACTUALLY GET FROM THE STATE.

SO IT'S A CHALLENGING, CHALLENGING THING.

[00:45:01]

AND SHE PUT A NICE CHART TOGETHER JUST TO LET YOU SEE WHAT THINGS HAVE LOOKED LIKE.

WHAT YEAR DID THE WE HAD A 10% CAP AT ONE TIME ON SPECIAL ED, DO YOU REMEMBER WHEN THAT WAS THAT IT WENT AWAY? I THINK I SAW A DOCUMENT TO 17-18.

I THINK IT 18 I WANT TO SAY 18 OR 19, BUT I THINK 18 IS WHEN AND 19 IS WHEN WE ENACTED, BUT 18 IS WHEN IT WENT INTO IT CAME FROM THE LEGISLATIVE SESSION OF 18.

I'M SORRY, PUT A CAP ON INITIALLY, BUT THEN THE FEDERAL GOVERNMENT DID NOT CARE FOR THAT.

AND SO IT'S BEEN LIFTED.

SO, YES, THE CAP WAS LIFTED.

IT WAS AT 10% AND I THINK WE'RE BETWEEN 12 AND 13.

NOW. IS THAT NOT CORRECT AROUND THERE? SO YOU CAN SEE WHERE WE WERE IN 2021, 21, 22.

AND THEN AS OF FEBRUARY LAST WEEK, WE WERE ALMOST AT 2900.

AND I KNOW SHE HAS QUITE A FEW REFERRALS FOR ARDS AS WE SPEAK, AND A LARGE PERCENTAGE OF THE CHANGE WAS THE RE-DESIGNATION OF DYSLEXIA.

ISN'T IT ONE OF THE HARDEST POSITION TO FILL ALSO? THAT'S CORRECT. HOW MANY VACANT POSITIONS DO WE HAVE THERE NOW? I KNOW WE HAVE OVER TEN EAS, BUT I DON'T KNOW ABOUT THE TEACHERS AND ALL.

DO YOU HAVE ANY IDEA OFF THE TOP OF YOUR HEAD, SKIP? MIC].

AND I THINK IT DEPENDS ON THE TYPE OF STUDENT THEY'RE SERVING, TOO.

AS TO WHETHER OR NOT IT'S DIFFICULT TO FILL IN, THOSE STUDENT TEACHER RATIOS ARE VERY LOW.

THAT'S CORRECT. IN SOME OF THEM, THEY'RE EXTREMELY LOW.

YEAH, I MEAN, LITERALLY SOME OF THEM ARE 1 TO 1, 2 TO 1.

BUT YOU CAN SEE THIS IS ONE OF THE AREAS THE STATE HAS DONE A TASK FORCE.

THEY'RE TELLING US THEY'RE GOING TO GIVE US SOME ADDITIONAL FUNDING.

WE JUST DON'T KNOW AT THIS POINT WHAT THAT MIGHT LOOK LIKE.

BUT THIS IS AN AREA EVERY DISTRICT IS STRUGGLING AND SPENDING WAY MORE THAN THEY RECEIVE.

YES, SIR.

YES, THERE ARE DISCUSSIONS AND UNFORTUNATELY, SOME OF THOSE DISCUSSIONS AROUND INCREASE IN SPECIAL ED ALLOTMENTS ARE TIED TO SOME OF THE VOUCHER DISCUSSIONS.

BUT THE CHARTER SCHOOLS DON'T WANT TO TAKE THE SPECIAL ED KIDS.

OH, THE IRONY. I MEAN, THAT'S STUPID.

AND THEY'LL HAVE A CAP ON.

SO, PATRICK, YOU CAN QUOTE ME STUPID.

AS JUST THE LAST PIECE OF THIS PRESENTATION TONIGHT, I WANTED TO GIVE YOU A LITTLE BIT OF AN UPDATE ON THE DEBT SERVICE FUND.

IF YOU REMEMBER BACK WHEN WE ISSUED OUR BONDS, WE WERE UNABLE TO GET THE PERMANENT SCHOOL FUND GUARANTEE.

THAT GOT US UP TO A TRIPLE A BOND RATING BECAUSE THE PERMANENT SCHOOL FUND RAN OUT OF CAPACITY.

THEY GO UP TO I THINK IT'S FOUR TIMES THEIR ASSET VALUE AND THE IRS HAS THEM FROZEN BACK IN 2014.

THERE'S A BATTLE GOING ON AT THE AT THE NATIONAL LEVEL.

BUT APPARENTLY THERE'S BEEN SO MUCH CONSTERNATION OVER THIS WITH DISTRICTS.

THEY'VE DECIDED, I'VE BEEN TOLD, THAT THEY'RE GOING TO OPEN UP SOME CAPACITY.

I BELIEVE IT'S IN APRIL.

THEY'RE GOING TO GO FROM 95% TO 99.5% OF THEIR ASSET VALUE.

AND I'VE TALKED TO OUR FINANCIAL ADVISORS, SO WE'RE GOING TO GO AHEAD AND FILE FOR PERMANENT SCHOOL FUND GUARANTEE ON THE REMAINING BONDS.

NOW, WE MAY NOT DO ANYTHING WITH THAT, BUT JUST TO SEE IF WE CAN GET IT.

YOU HAVE SIX MONTHS FROM THAT TIME PERIOD TO ISSUE THE BONDS, WHICH IS NOT WHEN WE HAD PLANNED TO ISSUE, BUT THE LAST TIME THE LEGISLATURE INCREASED THE HOMESTEAD EXEMPTION, THEY ONLY PROVIDED HOLD HARMLESS FUNDS ON YOUR BOND PAYMENTS FOR BONDS ISSUED PRIOR TO THE END OF THAT TIME PERIOD, I GUESS, BEFORE THE NEW BIENNIUM STARTED.

SO THEY IF YOU HAD ISSUED IF YOU EVEN THOUGH YOU HAD PASSED AN ELECTION, IF YOU ISSUED THE BONDS AFTER THE START OF THAT NEW BIENNIUM, THEN YOU DIDN'T GET HOLD HARMLESS MONEY AND YOU WERE JUST HURT BY THE LOWER VALUES AND THE LOWER TAXABILITY.

SO IN TALKING TO JOSH MCLAUGHLIN AT BE OKAY, WHAT WE DECIDED TO DO IS WE'RE GOING TO WAIT AND SEE WHAT THE LEGISLATURE DOES.

WE'RE GOING TO GO AHEAD AND TRY TO GET THE PERMANENT SCHOOL FUND GUARANTEE.

AND THEN WHAT WE'LL DO IS WE'LL SEE IF THE LEGISLATURE DOES INCREASE THE HOLD HARMLESS I MEAN, THE HOMESTEAD AND THEY'RE GOING TO FREEZE IT BASED ON BOND ISSUANCES PRIOR TO SEPTEMBER 1ST.

THEN HE'LL RUN THE NUMBERS TO SEE THE DIFFERENCE IN COST, PLUS THE LOSS OF TAX VALUE.

AND WE'LL SEE IF IT MAKES SENSE TO GO AHEAD AND ISSUE EITHER THE NEXT BOND ISSUE, WHICH IS $100 MILLION OR THE REST OF IT PRIOR TO SEPTEMBER 1ST.

[00:50:01]

BUT THIS IS NOT A DECISION OR ANYTHING WE NEED TO CONTEMPLATE.

NOW, I JUST WANT TO GIVE YOU THAT HEADS UP THAT THERE IS A CHANCE WE MIGHT COME AND RECOMMEND THAT WE ISSUE OUR NEXT BOND EARLY INSTEAD OF JANUARY DOING IT POSSIBLY IN AUGUST.

SO. WE ALREADY HIT OH, YES, SIR. BECAUSE OUR VALUES ARE MUCH HIGHER BECAUSE JOSH WAS PRETTY CONSERVATIVE.

FOR THE BOND? THE FIRST ISSUE WAS.

OH, THE THE INTEREST RATE.

YES, SIR. THE INTEREST RATE WAS MUCH BETTER THAN WHAT WE HAD EXPECTED.

YES. YES. YEAH, WE WERE.

AND EVEN WITHOUT THE PERMANENT SCHOOL FUND, WE WERE AT 3.81 ALL IN.

JOSH SAID I HAD HIM CALCULATE.

I HAD SOMEONE CALL ME FROM THE PERMANENT SCHOOL FUND BOARD WHO'S KIND OF SPEARHEADING THIS WORK WITH THE IRS.

AND I GUESS KAY GRANGER HAD GOTTEN INVOLVED AND WRITTEN A LETTER.

SO I PULLED DATA AND SENT IT TO KAY GRANGER'S ASSISTANT.

HE ASKED ME TO REACH OUT TO THEM TO SEE IF THEY'LL CONTINUE TO PRESSURE NOW THAT THE REPUBLICANS HAVE TAKEN OVER THE HOUSE, IF THEY'LL DO SOME PRESSURING ON THE IRS TO GET THIS RESOLVED BECAUSE IT IS HURTING, WE STILL HAD A GOOD UNDERLYING RATING, BUT IT STILL COST US AROUND 2 MILLION OVER THE ENTIRE BOND IN INTEREST BECAUSE WE DIDN'T HAVE THE PERMIT SCHOOL FUND.

BUT OTHER DISTRICTS HAVE MUCH LOWER BOND RATINGS UNDERLYING, SO THEY FARED MUCH WORSE THAN WE DID.

SO WE CAME OUT.

I WAS HAPPY WITH 3.81% IN THE MARKET.

ALL RIGHT. WELL, THAT'S ALL WE HAVE THIS EVENING.

I WANT TO BRING BRING IT UP.

BUT, I MEAN, I KNOW YOU DON'T KNOW ANYTHING AT THIS POINT, BUT IF IF THE WORD DOES GET PASSED DOWN IN AUSTIN, DO WE HAVE ANY IDEAS FROM OUR DEMOGRAPHERS? HOW MANY STUDENTS THAT THEY'RE PROJECTING THAT THAT MIGHT TAKE OUT OF OUR SCHOOL DISTRICT IF THE VOUCHERS? IS THAT WHAT YOU SAID? VOUCHERS? I DO NOT HAVE ANY DATA LIKE THAT.

I GUESS WE COULD ASK THEM.

SO ARE YOU THINKING ABOUT THE SPECIAL ED VOUCHERS OR JUST VOUCHERS IN GENERAL? OR. WE'VE GOT TO GET TOO MUCH OF A GOOD REPUTATION.

TAKING CARE OF OUR SPECIAL ED KIDS.

GREAT JOB. YEAH, I'M KIND OF WITH RICHARD ON THAT.

I DON'T REALLY SEE THAT MAYBE THERE MIGHT BE 1 OR 2 CASES THAT WHERE SOMEBODY SEES THAT AS UNHAPPY.

BUT. BUT THEY DON'T.

THEY DON'T HAVE THE PERSONNEL, THEY DON'T HAVE THE STAFFING.

THEY DON'T HAVE THE EQUIPMENT TO HANDLE IT.

NO, BUT I MEAN THAT IT PROBABLY GO INTO EFFECT SEPTEMBER 1ST, RIGHT.

LIKE MOST OF THE STATUTES, AND POSSIBLY YES, SIR, IT COULD.

AND THAT COULD THAT THEY WOULD HAVE VOUCHERS IN HAND.

I THINK IF YOU THINK ABOUT OUR DISTRICT, WE DON'T HAVE A LOT, MAYBE NOT A LOT OF CAPACITY.

NOW, WITH THAT, BRING IN MORE GROUPS THAT MIGHT WANT TO DO BY CAPACITY, MEANING THERE'S NOT A LOT OF SEATS IN PRIVATE SCHOOLS.

YEAH, THAT'S. AND THAT'S WHY I'M ASKING.

I MEAN, IT'S AN ARTICLE I READ, AN OP ED THAT THEY HAD IN THE DALLAS MORNING NEWS YESTERDAY WAS SAYING IN MOST PLACES THAT MOST ESTABLISHED PRIVATE SCHOOLS DON'T DON'T WANT VOUCHER KIDS AND THEY'RE HAPPY WITH THE KIDS THEY'VE GOT AND THEY DON'T WANT THE STATE COMING IN AND MESSING WITH THEM EVEN EVEN A LITTLE BIT.

RIGHT. SO IN OTHER STATES THAT THEY HAD SEEN VOUCHER SCHOOLS POP UP LIKE, OH, I'M GOING TO JUMP IN THERE AND START GETTING SOME OF THIS MONEY, AND THEN THEY'RE ALL COLLAPSING.

BUT SO THAT'S BUT I'M SURE SOMEBODY THOUGHT THROUGH THAT AND THEY'RE LIKE, YEAH, I LOOK AT YOUR AREA AND I DON'T SEE A LOT OF CAPACITY IN THE PRIVATE SCHOOLS RIGHT NOW, BUT THEN THEY MIGHT RAMP UP, YOU KNOW, IN THE NEXT TWO OR I DO PERSONALLY, AND THIS IS JUST ME JUST BEING A HUMAN.

I DON'T SEE IT HURTING THIS FOR A YEAR OR TWO.

RIGHT. BUT THEN LET'S TAKE LIKE A FORT CHRISTIAN MIGHT GO, HEY, WE PUT PUT A POLL OUT THERE AND IF WE HAD, WE HAD ANOTHER BUILDING AND AND BUILD A NEW WING.

WE COULD WE COULD BRING IN.

I THINK BETHESDA IS BUILDING OR PLANNING TO BUILD ONTO THEIRS, IF I UNDERSTAND CORRECTLY.

AREN'T THEY IN EXPANDING THEIR PRIVATE SCHOOL DOWN ON BEACH? SO I'M WONDERING IF THEY'RE TRYING TO CAPTURE SOME EXPECTING IT TO HAPPEN.

BUT THAT'S JUST DOING AWESOME WITHOUT VOUCHERS.

BUT YES, IT MIGHT BE, I DO THINK THAT THERE WILL BE A SEGMENT, NOT THE SEGMENT.

THEY KEEP SAYING THEY'RE TRYING TO HELP, BUT THERE WILL BE A SEGMENT THAT AN ADDITIONAL 7000 BUCKS WILL TAKE THEM OVER THE HUMP AND THEY'LL SAY, HEY, I SEE THAT.

BUT THEN SO ALL THIS GOES BACK TO MY ORIGINAL QUESTION, AND THAT WAS, HAS ANYBODY THAT'S A LOT SMARTER THAN ME GONE IN? AND IF WE DON'T WANT TO SPEND THE MONEY ON IT, I UNDERSTAND IT'S JUST A WAIT.

I CERTAINLY UNDERSTAND.

I CAN CERTAINLY ASK OUR DEMOGRAPHER IF THAT'S SOMETHING THAT THEY CAN LOOK AT.

I KNOW WHEN WE WORKED WITH THEM BEFORE AND WE'D ASKED ABOUT STUDENTS GOING TO PRIVATE SCHOOLS, THEY CAN'T GET THAT DATA OUT OF THE PRIVATE SCHOOLS BECAUSE IT'S NOT REQUIRED.

IT'S NOT PUBLIC. RIGHT.

IT'S ALSO NOT NOT REQUIRED FROM THE CHARTERS.

HOWEVER, YOU KNOW, A COUPLE OF THOUGHTS ABOUT VOUCHERS.

FIRST, IF IT'S OUR UNDERSTANDING AND IF VOUCHERS, IF THE VOUCHER SYSTEM WORKS AS SUCH, IF YOU TAKE PUBLIC MONIES, IF YOU TAKE STATE MONEY,

[00:55:07]

THEN YOU HAVE TO FOLLOW STATE REQUIREMENTS.

AND SO FOR THAT VERY REASON, AS THE MAIN REASON, MANY PRIVATE SCHOOLS DON'T WANT THE MONEY.

AND SO IF, YOU KNOW, I THINK IT'S VERY LIKELY THAT THERE ARE THERE ARE PRIVATE SCHOOLS ALL AROUND TEXAS THAT WOULD PREFER NOT TO TAKE STATE VOUCHER MONEY BECAUSE.

THAT'S RIGHT. BECAUSE THEY DO NOT WANT TO FOLLOW THE SAME ACCOUNTABILITY SYSTEM.

THEY DON'T WANT TO TAKE THIS.

THEY'RE NOT REQUIRED TO TAKE THE STATE TESTS OR FOLLOW THE SAME STATE ACCOUNTABILITY STANDARDS.

AND IF YOU TAKE THE MONEY, THEN IT'S VERY LIKELY THOSE SAME STANDARDS WOULD FOLLOW YOU.

THAT'S INTERESTING. THE PART I'VE BEEN READING ABOUT ABBOTT'S STUMP SPEECH.

HE'S SAYING SOME THIRD PARTIES GOING TO HANDLE ALL THAT STUFF AND.

I THINK THAT'S A GOOD WAY TO SELL IT.

YEAH, THAT'S A GREAT WAY TO SELL IT.

BUT THE ACCOUNTABILITY WOULD FOLLOW THAT MONEY THUS FAR THAT'S, THAT HAS WHAT'S KEPT VOUCHERS AT BAY BECAUSE THEY DON'T WANT THAT SAME ACCOUNTABILITY.

I HEARD HIM SAY ON ONE OF THOSE SUNDAY MORNING SHOWS THAT WAS DELAYED AND WATCHED IT LATE AT NIGHT.

HE DID SAY THEY WOULD FOLLOW THE SAME STANDARDS THE GOVERNOR DID.

I MEAN, HE SAID IT. THEY DIDN'T MISS ANY WORDS.

CONFLICTING STORIES.

OKAY. I UNDERSTAND. YEAH, WELL, HE'S CONFUSING THEM ALL.

YEAH. I THINK THE BIGGEST LOSS MAY BE I'VE HEARD POTENTIALLY WOULD BE THOSE THAT DECIDE TO DO THE HOMESCHOOL AND THEY'RE GOING TO TAKE THE MONEY AND THEY DO THESE CO OP PROGRAMS TOGETHER ANYWAY.

THEY'LL TAKE THAT $7,000 AND I CAN TAKE CARE OF MY KID MYSELF.

I'M SAVING ON THIS, THIS AND THIS AND THAT.

MOM WILL TEACH MATH.

I'LL SHE'LL DO SCIENCE AND HE'S IN CHARGE OF COMPUTERS, YOU KNOW, WHATEVER IT MAY BE.

HOMESCHOOL MAY BE THE ONE THAT REALLY STEAL PEOPLE BACK.

SO A LOT OF THE HOMESCHOOL WILL BE IN THE SAME POSITION AS THE PRIVATE SCHOOL.

THEY WON'T WANT TO TAKE THE STANDARDIZED TEST AS WELL.

MY UNDERSTANDING A LOT OF THE HOMESCHOOL ABSOLUTELY OPPOSED TO STANDARDIZED EDUCATION AND TESTING, ARE THEY? HE'S NOT HOME SCHOOL IF THEY TAKE IT.

WOW. YOU'D HAVE TO PASS.

YES. SO I THINK THE.

I THINK, MR. TOLBERT, I THINK YOU WERE SPOT ON IN TALKING ABOUT BECAUSE THE CONVERSATIONS THAT WE'RE HEARING ARE IN THE NEXT COUPLE OF YEARS, YOU'LL SEE WHAT WHAT PEOPLE ARE CHARMING AS POP UPS AND SO THEY'LL, IT'LL BE A SHORT TERM GAIN, TAKE THE MONEY AND THEN WITHIN 2 OR 3 YEARS, YOU KNOW, THEY WILL NOT BE ABLE TO ATTAIN THE ACCOUNTABILITY STANDARDS THAT ARE REQUIRED AND THEY'LL SHUT DOWN.

SO I THINK THAT WILL BE ONE OF OUR BIGGEST CHALLENGES IN THE COMING YEARS.

AND THAT'S GOING TO HURT KIDS.

I MEAN, THAT'S WE'LL GET THEM WHEN THEY COME BACK AND THAT'S THE THING. YOU'RE GOING TO HAVE ELASTICITY.

I THINK YOU'RE GOING TO SEE A DEPARTURE.

YOU'RE GOING TO SEE THE SNAP BACK AFTER A COUPLE OF YEARS, BECAUSE I THINK THERE IS VALIDITY TO THE FACT THAT THESE THINGS ARE ONLY COUPONS AT THE END OF THE DAY BECAUSE YOU'RE STILL PAYING ANYWHERE FROM 13,000 TO 19,000.

EVEN IN A FORT WORTH CHRISTIAN FIRST SEMESTER.

I HAVEN'T CHECKED IT IN A WHILE.

AND IF YOU'RE ONLY GETTING 7000, I THINK PEOPLE ARE GOING TO HAVE STICKER SHOCK AND UNDERSTANDING.

I'VE STILL GOT TO COME UP WITH ANOTHER 10 TO 12,000 FOR ONE KID FOR ONE KID.

AND MOST OF OUR HOUSEHOLDS ARE 2.2 OR WHATEVER IT IS.

CHILDREN, RIGHT. AND SO I THINK THERE'S GOING TO BE STICKER SHOCK AND I THINK THERE'S GOING TO BE SOME ELASTICITY.

SO I THINK THAT'S THAT'S THE THAT'S THE ARGUMENT THAT VOUCHERS WOULD CERTAINLY NOT BE BENEFICIAL FOR THE GROUPS OF CHILDREN AND FAMILIES THAT THE GOVERNOR IS SAYING IT'S INTENDED FOR, THAT IN EFFECT, IT'S REALLY ONLY GOING TO HELP THE STUDENTS WHO CAN ALREADY AFFORD TO GO TO THE PRIVATE SCHOOL AND THE PARENTS THAT CAN ALREADY AFFORD TO DO THAT.

SO I THINK ALSO WHAT YOU MAY SEE IS PEOPLE TAKING THE ONE TIME COUPON OR MONEY.

AND IF THEY IF THEY DO, LET'S SAY, GO TO A CHARTER, WELL, WE HAVE CHARTERS IN OUR OWN DISTRICT THAT ARE FAILING.

I'VE ACTUALLY FAILING ACCOUNTABILITY STANDARDS.

AND SO YOU MAY TAKE YOUR MONEY AND GO THERE OR, YOU KNOW, LEAVE A DISTRICT WITH VERY HIGH ACCOUNTABILITY STANDARDS INSTEAD.

AND TYPICALLY WE SEE THOSE STUDENTS COME BACK.

SO I THINK, AGAIN, IT MAY BE A SHORT TERM.

IF PEOPLE LEAVE, IT WOULD BE SHORT TERM, BUT THEY COME BACK TO THE PLACE, WHICH WOULD BE A TRADITIONAL PUBLIC SCHOOL.

BIRDVILLE ISD THAT THEY KNOW TAKES CARE OF THEIR CHILDREN, EDUCATES THEIR CHILDREN WELL, AND PROVIDES ALL THE RESOURCES NECESSARY FOR ALL CHILDREN, NOT JUST SOME.

AND MOST IMPORTANTLY PARENTS AND THIS IS A MESSAGE WE NEED TO SAY, YOU ONLY GET A CHANCE TO EDUCATE THAT CHILD ONE TIME.

AND IF YOU MESS UP ON IT, THERE'S NO GOING BACK.

I'M PROUD TO BE A BIRDVILLE GRADUATE.

[01:00:02]

ONE OF THE TAKEAWAYS I HAVE IN MY HEAD FROM THE SESSIONS IN AUSTIN LAST WEEK IS THOSE BILLIONS OF DOLLARS IN THEIR SURPLUS AND THE PHRASE WAS USED.

THERE'S A ONCE IN A LIFETIME OPPORTUNITY TO SPEND THOSE BILLIONS OF DOLLARS AND OBVIOUSLY EDUCATION IS GOING TO GET A PORTION OF IT.

BUT THERE ARE SPENDING CAPS TO WHERE THEY CAN ONLY TOUCH A PORTION OF IT, AND IT TAKES A SUPERMAJORITY OF BOTH HOUSES TO TAP INTO.

OTHERWISE THEY'RE JUST GOING TO HAVE A HUGE SURPLUS WHEN THE SESSION ENDS.

AND SO I DON'T KNOW THAT THEY'RE GOING TO GET TWO THIRDS MAJORITY.

TO TAP INTO THESE OTHER BILLIONS OF DOLLARS.

IF THEY GET THAT, THEN THERE COULD BE QUITE A BIT MORE MONEY FOR EDUCATION AND EVERYTHING ELSE.

BUT LIKE YOU STARTED OUT YOUR PRESENTATION, IS IT SUSTAINABLE? ONCE THAT MONEY IS GIVEN, AT SOME POINT THERE'S GOING TO BE A CLAWBACK OR SOMETHING.

INFLATION IS NOT GOING TO CONTINUE DOUBLE DIGIT, IS IT? WELL, IF YOU REMEMBER AND YOU MAY NOT, BUT BACK IN 2011, WHEN WE HAD THE FEDERAL MONEY, THE STATE DECIDED TO SUPPLANT THE GENERAL FUND REVENUE WITH FEDERAL DOLLARS.

SO THEY BASICALLY CARVED OUT A CHUNK AND MOVED IT OVER TO FEDERAL.

AND THEN WHEN IT WENT AWAY, EVERYONE HAD TO CUT THEIR BUDGETS BECAUSE ALL OF A SUDDEN THE BUDGET THEY'D BEEN COUNTING ON WAS GONE.

SO THAT HAD HAPPENED IN 2011.

THANKFULLY, WE'RE NOT IN THOSE DAYS.

BUT AND THANKFULLY THEY DIDN'T DO THAT WITH ESSER.

SO. IT'S AN INTERESTING CONUNDRUM FOR OUR LEGISLATORS BECAUSE THEY'VE GOT MONEY THEY NEED TO SPEND, BUT THEY'VE GOT TO BE ONE TIME COSTS OR SOMETHING.

THERE'S ALSO A FACTION IN THERE THAT SAYS WE'RE OVER TAXING OUR PEOPLE.

EXACTLY. SO WE NEED TO REDUCE TAXES SO WE DON'T HAVE THAT BIG SURPLUS AT THE END OF THE YEAR OR END OF THE BY.

OKAY. IN TEXAS, YOU UNDERSTAND SOME OF THE TAXES THAT ARE HITTING YOU.

ANY OTHER QUESTIONS OR ANYTHING? OKAY. WHEN WE COME BACK NEXT TIME, WE'LL I THINK IT'S IN APRIL, WE'LL HAVE BUDGET INITIATIVES.

WE'LL HAVE MORE UPDATED BUDGET INFORMATION.

SO AND A FEW OTHER TOPICS OF DISCUSSION FOR YOU GUYS.

SO THE DATE AT THAT APRIL MEETING.

DO YOU KNOW? 25TH? APRIL. 25TH.

HERE AGAIN? SURE. IT'S A GOOD PLACE TO MEET.

GRAB THOSE AS WE HAVE NO FURTHER BUSINESS, DO I HEAR A MOTION TO ADJOURN THIS MEETING? MOTION.

I GOT ONE FROM MR. TOLBERT. I'LL SECOND.

SECOND FROM MR. DREES. ALL THOSE IN FAVOR? IT IS UNANIMOUS.

THE BOARD MEETING ADJOURNED AT 7:39.

* This transcript was compiled from uncorrected Closed Captioning.