[A. CALL TO ORDER]
[00:00:04]
THE TIME IS 5:30.STINSON, WILL YOU CONFIRM THAT THE MEETING WAS DULY CALLED AND A NOTICE OF THE MEETING WAS POSTED IN ACCORDANCE WITH TEXAS OPEN MEETINGS ACT? YES, SIR. MR. DAVIS, WE DID POST AND ADVERTISE THIS MEETING IN ACCORDANCE WITH THE LAW.
[C. CLOSED SESSION]
WE'LL NOW CONVENE IN A CLOSED SESSION AS AUTHORIZED BY TEXAS GOVERNMENT CODE 551 SPECIFICALLY 0.07 FOR PERSONNEL 0.072 REAL PROPERTY 0.071 CONSULTATION WITH THE BOARD'S ATTORNEY AND 0.076 SECURITY.WE'LL NOW GO INTO EXECUTIVE SESSION.
OKAY. ONE, TWO, THREE, FOUR, FIVE, SIX.
[D. RECONVENE INTO OPEN SESSION ]
THE TIME NOW IS 7:27.WE'LL RECONVENE INTO OPEN SESSION.
[F. PRESENTATIONS TO THE BOARD]
MISS BOWMAN, YOU'RE FIRST UP.OKAY. SO LET ME I'LL JUST KIND OF GET THIS INTRODUCED.
BUT GIVEN THE STATE OF UNCERTAINTY FROM THE LEGISLATURE, WE WANTED TO GIVE YOU AN INFORMATION ITEM TONIGHT FROM OUR FINANCIAL ADVISOR, JOSH MCLAUGHLIN, AND HE IS HERE JUST TO REITERATE OUR SITUATION AND SOME POSSIBILITIES FOR THE FUTURE AND WHAT SOME OPTIONS MAY LOOK LIKE FOR BISD IN THESE UNCERTAIN TIMES.
GOOD EVENING. THANK YOU VERY MUCH.
ON MY LEFT HERE IS RANDY MCDOWELL.
RANDY, BEFORE HE RETIRED AND JOINED THE DARK SIDE HERE FOR BOND ADVISORS WAS THE CFO AT PLANO ISD, ROCKWALL ISD, CANYON ISD AND FORMER PRESIDENT AT TASBO.
AND THE GENTLEMAN ON THE FAR LEFT HERE IS OMAR GARCIA.
OMAR IS AFFECTIONATELY KNOWN AS THE GODFATHER OF SCHOOL DISTRICT FINANCE.
SO I DEFINITELY BROUGHT THEM BECAUSE WE'RE NOT TALKING ABOUT BONDS.
TONIGHT. WE'RE GOING TO TALK ABOUT THE M&O SIDE OF THE EQUATION.
SO AS YOU'RE VERY FAMILIAR WITH, EVERY YEAR, THE BOARD OF TRUSTEES ADOPTS TWO DIFFERENT TAX RATES.
SO GENERALLY WHEN I SHOW UP, WE TALK ABOUT BOND PAYMENTS.
BUT AGAIN, WE'RE GOING TO TALK ABOUT M&O TONIGHT IN TERMS OF OVERALL TAX RATE.
YOU COULD SEE IN THE BLUE THERE, THAT IS THE DISTRICT'S NO TAX RATE OVER THE LAST SEVEN YEARS, ALONG WITH THE INS, WHICH HAS STAYED CONSTANT SINCE 2019.
SO OVER THE LAST FOUR YEARS, YOUR TOTAL TAX RATE DUE TO COMPRESSION HAS DECLINED 17.41 CENTS.
THAT WILL DROP AGAIN NEXT YEAR.
NOW WE'RE JUST TRYING TO DETERMINE HOW MUCH OF A DROP IT'S ACTUALLY GOING TO OCCUR NEXT YEAR.
SO LET'S TALK ABOUT HOW THE M&O TAX RATE IS COMPRISED.
IT IS COMPRISED OF TWO DIFFERENT RATES.
ONE IS YOUR TIER ONE TAX RATE, WHICH ALSO IS LIKENED TO THE MAXIMUM COMPRESSED RATE THAT IS GENERALLY SET BY THE STATE EACH YEAR.
AND THEN YOU HAVE YOUR TIER TWO ENRICHMENT TAX RATE.
CURRENTLY YOU'RE AT FIVE PENNIES, YOU CAN HAVE UP TO 17 PENNIES.
SO CURRENTLY YOUR NO TAX RATE FOR 22, 23 IS 8659.
AGAIN, THAT IS SOMETHING THAT IS PUBLISHED BY TEA EVERY YEAR, NO LATER THAN AUGUST 5TH, BASED UPON THE PROPERTY VALUES THAT YOU SUBMIT AT THE END OF JULY. SO WE'LL GO ON.
THERE IS A HUGE FORMULA FOR THE MCR, AS I LIKE TO CALL IT, THE MAXIMUM COMPRESS RATE THIS PAST YEAR.
ESSENTIALLY THE CEILING WAS 89.41 CENTS, THE FLOOR WAS 80.46.
YOUR MCR IS 8159 SO YOU'RE ABOUT ONE PENNY ABOVE THE FLOOR NEXT YEAR.
AS WE STAND TODAY, THE CEILING, I BELIEVE, IS CLOSE TO 79.5 CENTS.
SO YOU'LL SEE THAT YOU'RE GOING TO GET ANOTHER DROP, AND THAT IS BEFORE THE LEGISLATURE TAKES UP THE CURRENT FUNDING BILL THAT'S IN SPECIAL SESSION RIGHT NOW.
SO IN TERMS OF THE TIER TWO ENRICHMENT TAX RATE, THERE ARE $0.17, AS I ALLUDED TO EARLIER.
[00:05:04]
THE FIRST $0.08 ARE WHAT'S KNOWN AS GOLDEN PENNIES.GOLDEN PENNIES ARE NOT SUBJECT TO RECAPTURE.
SO WE HAVE THE HIGHER WEIGHT, HENCE THE TERM GOLDEN.
BASICALLY YOU GET OR THE DISTRICT GETS 98 TO 56 PER PENNY IN A WEIGHTED AVERAGE DAILY ATTENDANCE OR WADA COPPER PENNIES ARE $0.09 ABOVE THAT.
SO AGAIN, WE HAVE TWO ESSENTIAL STATE FUNDING TIERS, IF YOU WILL.
THE FIRST ONE IS TIER ONE FUNDING, WHICH IS BASICALLY YOU HEAR THIS ALL THE TIME.
WHAT IS THE BASIC ALLOTMENT IN TERMS OF THE BASIC ALLOTMENT? THE DISTRICT GETS $6,160 PER AVERAGE DAILY ATTENDANCE OR ADA.
AND THEN YOU GET INTO THE TIER TWO FUNDING, WHICH IS ENRICHMENT TAX RATE, AGAIN AT A GOLDEN PENNY YIELD OF 9856 AND AT A COPPER PENNY YIELD OF 4828.
SO WHEN YOU START THINKING ABOUT OUR OVERALL SYSTEM, WE ALWAYS TALK ABOUT ROBIN HOOD, RIGHT? THE HIGHER YOUR TAX RATE OR THE HIGHER YOUR LOCAL TAXES THAT COULD POTENTIALLY BE RECAPTURED.
SO THE WAY THIS GRAPH WORKS AT THE VERY BOTTOM IS JUST AN ILLUSTRATION AS YOUR PROPERTY TAX VALUES GROW AND LET'S SAY YOUR STUDENTS STAY CONSTANT, YOU BECOME WEALTHIER AND WEALTHIER, SO YOU GENERATE MORE AND MORE LOCAL TAXES, WHICH MEANS THE STATE PICKS UP LESS AND LESS TO THE POINT WHERE YOU CAN OVERFLOW AND ALL THAT OVERFLOW GOES INTO RECAPTURE.
SO THE WAY TO THINK ABOUT IT IS IF YOUR TIER ONE AND YOUR TIER TWO TAX RATE GENERATE MORE THAN WHAT YOU HAVE IN ENTITLEMENTS, YOU ARE SUBJECT TO RECAPTURE.
IF IT GENERATES LESS, THE STATE PICKS UP ADDITIONAL FUNDING TO THE DISTRICT.
SO WE TRY TO DO THIS MATHEMATICALLY FOR YOU SO YOU COULD SEE SORT OF WHAT THE DIFFERENCE.
SO IF YOU LOOK AT YOUR CURRENT YEAR AND IT'S PROJECTED, YOU'RE GETTING ABOUT $118 MILLION IN TERMS OF COLLECTIONS 73.5 MILLION IN STATE AID FOR A TOTAL OF ABOUT $192.2 MILLION.
WELL, LET'S CHANGE A COUPLE OF THE VARIABLES.
OKAY. LET'S INCREASE YOUR TAX VALUE.
IF WE INCREASE YOUR TAX VALUE 6%, YOU COULD SEE THOSE TAX COLLECTIONS GO UP TO 122.6 MILLION AND YOUR STATE AID COMES DOWN BY THE CORRESPONDING AMOUNT.
BASICALLY, THIS JUST ILLUSTRATES THAT IT'S AN EQUALIZED SYSTEM.
WHEN WE LOOK AT THIS YEAR'S APPROPRIATION BILL, THE NO, I'M SORRY, THE GOLDEN YIELD.
GOLDEN PENNY YIELD IS INCREASING FROM 98 TO 50 6 TO 1, 2621.
SO EVERY YEAR YOU HAVE TO GO OUT AND PUBLISH YOUR VOTER APPROVAL TAX RATE.
OR IF YOU GO OUT FOR A VOTER APPROVAL TAX RATE ELECTION, WE'LL CALL THAT A VOTER PLUS YOUR RATE, AND THAT IS YOUR VOTER APPROVAL RATE.
SO WHAT IS AVAILABLE TO BIRDVILLE ISD AND WHY CONDUCT A POTENTIAL EVADER? AGAIN, WHY KENTUCKY POTENTIAL? VADER IS FOR ADDITIONAL REVENUE FOR TEACHER SALARIES, STUDENT PROGRAMS, DAILY OPERATIONS OF THE DISTRICT.
IT GIVES YOU MORE FINANCIAL FLEXIBILITY.
THAT IS AN ADDITIONAL 10.856 MILLION OF REVENUE BASED UPON YOUR CURRENT WADA.
IF YOU GO OUT FOR THE NINE ADDITIONAL COPPER PENNIES, THAT'S AN ADDITIONAL 12.7 MILLION.
SO ALL TOLD, THERE'S AN ADDITIONAL 12 POINT OR 23.5 MILLION BASED UPON THIS PARTICULAR WADA
[00:10:07]
OF 28,673 THAT THE DISTRICT COULD POTENTIALLY GET IN ADDITIONAL STATE FUNDING.SO AGAIN, THESE ARE THE SAME NUMBERS AS THE PRIOR PAGE.
BUT WHAT WE WANTED TO DO IS TO SORT OF BREAK IT OUT.
SO ON THE LEFT HAND SIDE, WE TALK ABOUT, YOU KNOW, IF YOU HAD GONE OUT AND DONE A VADER FOR THE 2022, 23 SCHOOL YEAR, WHAT THAT WOULD HAVE BEEN IN ADDITIONAL FUNDING.
SO THIS PAST YEAR IT WOULD HAVE BEEN ABOUT $8.5 MILLION FOR YOU.
WHEN YOU LOOK AT EIGHT GOLDEN PENNIES, IT'S 28.95 MILLION.
SO AN INCREASE OF ABOUT 10.856.
IF YOU LOOK AT IT NEXT YEAR, IT WOULD ACTUALLY GENERATE ROUGHLY $13 MILLION OF LOCAL TAXES.
BUT THAT IS A LITTLE BIT MORE THAN THE GUARANTEED YIELD OF 4828.
SO YOU WOULD ACTUALLY HAVE 355,000 OF RECAPTURE.
SO WHY CONDUCT A VADER AGAIN? YOU KNOW, THIS IS A BOARD, REALLY.
AND MORE OFTEN THAN NOT, FOR MORE SCHOOL DISTRICTS THAT GO OUT FOR VADER'S, IT HELPS REDUCE A POTENTIAL DEFICIT THAT THEY'RE FACING DUE TO THE LACK OF STATE FUNDING THAT THEY ARE RECEIVING. JOSH SO THE HOUSE BILL THREE WOULD FIT NICELY INTO YOUR SECOND TO LAST BULLET.
REQUIREMENT. NO, HOUSE BILL THREE, SAFETY AND SECURITY.
THE SCHOOL SAFETY BILL WITH THE ARMED SECURITY REQUIRED AT EVERY CAMPUS.
WELL, ACTUALLY, I THINK. YEAH, WELL, IT'S PASSED, BUT NOT SIGNED BY THE GOVERNOR YET.
OKAY. SO AGAIN, THERE ARE SO MANY BILLS OUT THERE, BUT YES, TO THE EXTENT THAT IS NOT A FUNDED BILL AND WE HAVEN'T SEEN THE FUNDING ASSOCIATED WITH THAT, THIS CERTAINLY HELPS THAT.
OKAY. SO BEFORE CONDUCTING A VATRE, THE DISTRICT HAS TO CONDUCT AN EFFICIENCY AUDIT.
TYPICALLY YOU GO OUT AND YOU SELECT AN AUDITOR TO SIX, 5 TO 10 DISTRICTS AND THEY LOOK AT A VARIETY OF DIFFERENT THINGS, ANYWHERE FROM FINANCIALS TO STAFFING LEVELS TO COMPENSATION PLANNING BUDGET, THE WHOLE NINE YARDS.
THE GOOD NEWS IS THE LAST BULLET POINT OR SECOND TO LAST BULLET POINT THERE IS A DISASTER EXEMPTION THAT FOLLOWING A DECLARED DISASTER AREA, THE TWO YEAR PERIOD AFTER THAT, IF YOU GO OUT FOR VATRE, YOU DO NOT HAVE TO GET AN EFFICIENCY AUDIT DONE.
WELL, IN APRIL OF THIS YEAR, GOVERNOR ABBOTT INCREASED OR EXTENDED THE COVID DISASTER DECLARATION.
THE REASON I BRING THAT UP IS EFFICIENCY.
THEY'RE SOMEWHERE BETWEEN 10 AND $15,000.
SO THAT'S SOMETHING THAT YOU COULD KEEP IN THE BACK OF YOUR HAND.
ARE THOSE EFFICIENCY AUDITS USUALLY? GOOD FACTS AND INFORMATION TO BE ABLE TO TELL THE VOTERS, THOUGH, THE COMPARISONS.
SO ON THE FEW I'VE SEEN, THE ANSWER IS IT'S INTERESTING INFORMATION, BUT I HAVEN'T REALLY SEEN ANY SCHOOL DISTRICT TAKE THAT EFFICIENCY AUDIT AND GO OUT AND MARKET THEIR VATRE.
YEAH, NO, TYPICALLY WHAT WE SEE THE EFFICIENCY AUDITS DONE ARE JUST TO PUT IT ASIDE AND SAY WE CHECK THIS BOX BEFORE WE GO OUT FOR THIS FOR THE ACTUAL ADDITIONAL FUNDING.
[00:15:01]
TYPICALLY WE SEE SCHOOL DISTRICTS WHO GO OUT FOR VATRE.TALK ABOUT WHAT THAT MEANS IN TERMS OF ADDITIONAL PAY RAISES OR SPOTS OR SAFETY AND SECURITY.
THANK YOU. IN TERMS OF THE EFFICIENCY AUDIT, IF YOU WANTED TO GO THROUGH ONE, YOU WOULD NEED TO SELECT AN ORDER BY JULY 7TH AND THEN YOU ACTUALLY HAVE TO PRESENT THAT TO THE COMMUNITY BEFORE THE CONDUCTING OF THE VATRE.
BUT IN THIS CASE, YOU WON'T NEED ONE.
YOU GOT TO GET THAT BY JUNE 30TH TO PASS THE BUDGET, THE MAXIMUM COMPRESSION RATE.
YOU'LL KNOW ONCE YOU GET YOUR CERTIFIED VALUES ON JULY 25TH TEA BASICALLY TEN CALENDAR DAYS OR ONCE THEY SET THE VATRE OR THE MCR, YOU HAVE TEN CALENDAR DAYS ESSENTIALLY TO CONTEST THE MCR.
AND AGAIN, THAT WOULD OCCUR ON NOVEMBER 7TH.
THIS IS THE ACTUAL BALLOT LANGUAGE THAT WILL BE ON A POTENTIAL VADER.
THIS COMES STRAIGHT OUT OF THE CODE.
ESSENTIALLY, IF YOUR COMMUNITY COMES AT THE ELECTION AND APPROVES IT, YOU BASICALLY ADOPT THAT PROPOSED TAX RATE FOR 2324. IF THE COMMUNITY DOES NOT APPROVE THE VATRE, THEN YOU ADOPT THE LOWER VOTER APPROVAL TAX RATE. FROM AN HISTORICAL STANDPOINT, THERE USED TO BE CALLED TREES OR TAX OR RATIFICATION ELECTIONS, BUT THIS REALLY CAME INTO EFFECT WHEN THEY CHANGED THE LAW BACK IN 2019.
SINCE THEN, THERE HAVE BEEN 73 SCHOOL DISTRICTS GO OUT FOR OR THERE HAVE BEEN 73 ELECTIONS.
THOSE ARE SORT OF THE EXTREMES.
56 OUT OF THE 73 WILL GO FOR ONE OF THE OTHER TWO.
WE SEE A LOT OF THESE TIED WITH BOND ELECTIONS.
WE SEE A LOT OF THESE ON A STAND ALONE BASIS.
IT IS REALLY ABOUT NEED WITHIN THE SCHOOL DISTRICT.
THE NEXT SEVERAL PAGES GO OVER HISTORY.
I WON'T GO THROUGH EVERY SINGLE ONE OF THEM, JUST KNOW THEIR SCHOOL DISTRICTS IN AND AROUND THE AREA, LIKE IN ARLINGTON, LIKE A FORT WORTH THAT HAVE GONE OUT AND DONE THESE VATRE'S.
AND I'LL JUST FLIP THROUGH THIS SLOWLY.
UNLIKE A PLANO THIS PAST YEAR.
LOVEJOY. JOSH, DO YOU HAPPEN TO KNOW HOW MANY DID THE TAX RATIFICATION ELECTIONS PRIOR TO 19? DO WE HAVE A COUNT ON THAT? HUNDREDS. I THOUGHT THERE WERE QUITE A FEW THAT DID IT BEFORE.
BUT WHEN THEY CHANGED THE RULES TO THIS, THIS IS SORT OF OUR NEW COHORT.
I JUST WANT THEM TO KNOW THAT IT WAS MORE THAN JUST THE 71 THAT HAD DONE.
OH, ABSOLUTELY. SO OVER TIME THERE, I WOULD VENTURE TO SAY ALMOST HALF OF THE SCHOOL DISTRICTS IN THE STATE HAVE GONE THROUGH A TAX RATE ELECTION.
I KNOW I WENT THROUGH THIS RELATIVELY QUICKLY.
I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.
WE'LL START DOWN AT THIS END, BRENDA OR MR. KUNKEL. WELL, SINCE WE HAVE THAT TWO YEAR OPPORTUNITY, IT COVERS 2324, BUT IT ALSO ALLOWS US FOR 2425, DOESN'T IT? WE ESSENTIALLY TO NOT HAVE TO DO THE AUDIT? YES, SIR. I THINK WE'D HAVE ANOTHER YEAR.
NOT THAT WE'RE REALLY THINKING ABOUT THAT, BUT IT'S IN OUR BACK POCKET.
[00:20:03]
IT IS IN YOUR BACK POCKET.THE INTERESTING THING ABOUT 2324 IS YOU'RE ALREADY GOING TO GO DOWN ON THE SIDE OF THE EQUATION.
THAT IS BEFORE THE STATE SORT OF ARGUES ABOUT WHETHER IT'S ANOTHER $0.10 AND AN INCREASE IN THE HOMESTEAD EXEMPTION OR ANOTHER $0.16 IF THE HOUSE GETS ITS WAY. WE'RE PRAYING FOR.
YES. SO AGAIN, THERE'S A WIDE VARIETY THERE.
SO IF THIS IS SORT OF A GOOD YEAR TO DO THIS BECAUSE THE IMPACT ON THE TAXPAYER IS THE LEAST.
I'LL ASK THE GODFATHER A QUESTION.
AND WHAT'S YOUR CRYSTAL BALL TELL YOU? WHAT'S AUSTIN GOING TO DO? BROKE A LONG TIME AGO.
BUT ASSUMING THAT THEY COMPROMISE, WHICH IS A BIG ASSUMPTION, IT'LL BE BETWEEN 10 AND 16.
8.25 THAT YOU'RE ALREADY PLUS SOME RISE IN THE HOMESTEAD EXEMPTION TO SOMETHING THERE, MAYBE.
POSSIBLY THE SENATE WOULDN'T TOTALLY GIVE THAT UP, WOULD THEY? I THINK THE SENATE WOULD AGAIN, IF THEY COMPROMISED.
YEAH. LOOK THIS WAY, MR. TOLBERT. YEAH.
SO THE LAST DAY FOR US TO CALL ELECTION IS AUGUST 21ST.
BUT WE WOULD HAVE TO POST THE NOTICE.
PRIOR TO THAT, THE AUGUST 13TH, WE'D HAVE TO POST OUR NOTICE IN THE PAPER.
I WOULD LIKE TO HAVE A DAY OR TWO TO PREPARE THAT NOTICE AS WELL.
PLEASE GO AHEAD AND PREPARE IT NOW.
I MEAN, THE PROBLEM IS WE MAY NOT KNOW WHAT AUSTIN'S GOING TO DO UNTIL AFTER THAT.
ARE YOU HEARING THE SAME THINGS? WELL, COME ON. YOU GOT AN OPINION.
NO, I THINK WHAT WE'RE I MEAN, THERE'S JUST A LOT OF TALK GOING ON RIGHT NOW, BUT THERE'S A LOT OF THOUGHT THAT THE SEPTEMBER, THE AUGUST, SEPTEMBER LATER MAY BE THE VOUCHER SPECIAL SESSION.
I MEAN, THEY'RE PRETTY MUCH TRYING TO CRAFT THEIR BUDGET RIGHT NOW.
IT APPEARS IF THEY'RE GOING TO DO THAT, THAT'S GOING TO HAPPEN REALLY QUICK.
AND REALLY AT THIS POINT, THEY'RE NOT INCREASING THE BASIC ALLOTMENT.
THERE'S NOT ANY TALK, THERE'S NOT ANY PROPOSED BILLS THAT WASN'T ON THE GOVERNOR'S AGENDA.
SO I DON'T THINK ANYBODY'S REALLY ANTICIPATING ADDITIONAL REVENUE AT THIS POINT.
IT SEEMS LIKE THEY KIND OF BLEW THEIR CHANCE WHEN THEY LET HOUSE BILL 100 DIE AND THERE WAS LITTLE TRACTION, EXCUSE ME, IN THE SENATE SIDE TO INCREASE STATE FUNDING AT ALL. AS FAR AS THE BASIC ALLOTMENT.
TAX RELIEF IS WHAT IT APPEARS.
SO YOU DON'T FEEL LIKE THERE'S BUT IT'S ALL GOING TOWARDS COMPRESSION OR INFLATION.
SO THAT'S NO, NO NEW MONEY FOR SCHOOLS OTHER THAN THE GOLDEN PENNY YOU INCREASE.
SO YOU DON'T FEEL LIKE THERE WILL BE ANY COMPROMISE ON THAT IN SEPTEMBER IN TERMS OF VOUCHERS FOR THAT? I MEAN, THEY COULD. IT'S ANYBODY'S GUESS RIGHT NOW.
I MEAN, WOULD THEY COME BACK AND MAYBE THE SENATE MIGHT COME BACK WITH VOUCHERS AND THE HOUSE MIGHT COME BACK AND SAY, BUT YOU'RE GOING TO HAVE TO GIVE DISTRICTS ADDITIONAL REVENUE? THAT'S KIND OF WHAT THEY TRIED THIS TIME.
BUT I MEAN, HONESTLY, ON THE HOUSE BILL 100, IT WAS $100 PER STUDENT, $100 PER ADR.
WELL, WHEN YOU TAKE THAT AS A PERCENTAGE OF 6000, SORRY ABOUT MY VOICE.
WHEN YOU TAKE THAT AS A PERCENTAGE OF 6160, THAT'S A VERY SMALL PERCENTAGE INCREASE.
I MEAN $100 PER DAY AND FOR SURE, 50.
I MEAN, THAT'S NOT EVEN ANYWHERE NEAR KEEPING UP WITH INFLATION.
IT'S NOT ANYWHERE NEAR THE 900 PER THAT WE NEED, CORRECT? I WOULD AGREE. YEAH.
AND AGAIN, AS WE START GETTING THROUGH TAX COMPRESSION FIRST, WHICH SEEMS TO BE THEIR HIGHEST PRIORITY, THAT MONEY FLOWS OUT OF WHAT IS BEING ALLOCATED. SO WHEN YOU GET TO A VOUCHER VERSUS A.
STUDENT NOW HAVE BASIC ALLOTMENT INCREASE.
YES, SIR. SO THE ONLY THING THAT'S ON THE TABLE IS TAX RELIEF ONLY.
[00:25:06]
NOTHING TO DO WITH SCHOOL FUNDING.THAT'S RIGHT. NOTHING TO DO WITH OUR FUNDING.
NOTHING. BASIC ALLOTMENT FUNDING.
IT WOULD JUST BE LESS LOCAL AND MORE STATE AID.
I UNDERSTAND. YEAH, BUT THAT HAS NOT BEEN APPROVED YET.
THAT'S CORRECT. THAT'S THE DEBATE RIGHT NOW.
AND SCHOOLS ARE ESSENTIALLY BEING HELD HOSTAGE UNTIL SEPTEMBER.
EXACTLY. YES. IN ESSENCE, OVER VOUCHERS.
THAT'S WHAT IT APPEARS, NOT NOT TO DIVULGE.
I MEAN, MOST OF IT'S PUBLIC INFORMATION.
BUT WHAT ARE YOU HEARING FROM YOUR OTHER DISTRICTS THAT YOU REPRESENT? I MEAN, THAT CREATES A DEFICIT BUDGETING IF THERE'S NO INCREASE IN BASIC ALLOTMENT.
THERE REALLY IS NO TRUE TAX COMPRESSION AND WE GET ADDITIONAL STATE FUNDS.
TO DO ANYTHING, WE HAVE TO GO INTO OUR RESERVES.
ARE YOU HEARING THAT COMING FROM YOUR OTHER CLIENTS? SO THERE IS TAX COMPRESSION BECAUSE THE STATE VALUES HAVE GROWN SO MUCH.
AND SO THAT'S THE FIRST STEP IN THAT COMPRESSION THAT WE THAT'S AUTOMATIC.
BUT IT'S THE SECOND COMPRESSION THAT THERE'S THE DEBATE ON.
SO, YEAH, THERE WILL BE COMPRESSION STATEWIDE.
AND HOW MUCH IS THE AUTOMATIC? YOU SAID $0.08 OR SOMETHING LIKE THAT.
YEAH, ONE TIME WE WERE LOOKING AT 15, I THINK THE HOUSE HAD THEIR PREDICTION WAS $0.15, CORRECT? YES. I THINK IN THIS SPECIAL SESSION, THEIR BILL ACTUALLY CAME BACK FOR 16.
AND TO ANSWER YOUR QUESTION, WHAT ARE OTHER CLIENTS ARE TALKING ABOUT RIGHT NOW? IT IS HOW DO WE PAY FOR TEACHER SALARY INCREASES? A LOT OF SCHOOL DISTRICTS HAVE GOTTEN OUT AND STARTED TO RELEASE SALARY SCHEDULES BEFORE OTHERS NOT KNOWING WHAT WAS GOING TO COME OUT OF THE LEGISLATURE.
I CAN'T DO THAT FOR ANY LENGTH OF TIME.
SO WHAT ARE MY OTHER OPTIONS? AND A LOT OF OUR CLIENTS ARE LOOKING AT THESE PARTIES.
MAYBE. I DON'T THINK WE CAN DEPEND UPON IS WHAT THE VOTERS GIVE US.
AUSTIN CAN NEVER PULL BACK ANY OF THAT, CORRECT? I SAY OUR VOTERS GAVE US $0.08.
RIGHT. AUSTIN CAN'T COME GET THAT.
WELL, SO YOU ONLY HAVE THREE MORE GOLDEN.
OKAY, BUT YOU'RE JUST SAYING TIER TWO PENNIES IN GENERAL, RIGHT? SO IF YOU GO OUT FOR A VATRE AND YOU PASS THOSE PENNIES, THEN UNDER CURRENT LAW, YOU WOULD HAVE THOSE PENNIES.
WHY DON'T YOU PASS THOSE AND THEY'RE YOURS FOREVER.
UNDER CURRENT. UNDER CURRENT PASS, THEY'RE YOURS FOREVER.
UNDER CURRENT LAW, YES. WE CAN ONLY ASK FOR THREE MORE.
THAT'S RIGHT. YOU ONLY NEED THREE MORE TO REACH THE EIGHT.
YOU CAN ASK FOR MORE THAN THAT.
GO INTO THE COPPER CATEGORY, THEN THEY SLOT INTO COPPER.
EACH PENNY GENERATES HOW MUCH REVENUE FOR US? KATY APPROXIMATELY.
1.5 MILLION. I THINK HE HAD IT ON THE SLIDE, 1.5.
SO THAT'D BE FOUR. IF WE DID THREE PENNIES, IT'D BE 4.5 MILLION.
EACH PENNY IS WORTH ABOUT 3.6 MILLION.
AFTER THOSE THREE PENNIES, YOU GET INTO COPPER PENNIES AND THEY'RE WORTH ABOUT $1.4 MILLION APIECE.
SO WE WOULD GENERATE 10.85 OFF OF THREE GOLDEN PENNIES.
THAT'S RIGHT. SO ANOTHER WAY TO THINK ABOUT THIS AND THIS IS TYPICALLY WHAT WE'VE TALKED TO A LOT OF OUR CLIENTS ABOUT IS THIS YEAR ON THE NO SIDE, YOU'RE ALREADY BEING COMPRESSED, 8.2 $0.05.
[00:30:05]
THE DISTRICT WILL PICK UP NEARLY $11 MILLION IN ADDITIONAL STATE AID.AND THE VOTERS STILL GO TO 15 CENT COMPRESSION.
AND I THINK ONE OF THE THINGS YOU CAN THINK ABOUT FROM A FISCALLY CONSERVATIVE PERSPECTIVE IS THERE ARE DISTRICTS THAT GO OUT AND REQUEST ALL THE PENNIES THAT ARE AVAILABLE TO THEM. SO, YOU KNOW, DEPENDING ON IF YOU DON'T WANT TO DO ALL OF THE PENNIES, YOU CAN SAY, WELL, WE COULD HAVE ASKED YOU FOR ALL OF THEM, BUT WE'RE ASKING FOR WHAT WE NEED TO TAKE CARE OF THE NEEDS OF THE DISTRICT AND OUR STAFF.
SO IT'S SOMETHING TO CONSIDER NEEDS INSTEAD OF PERSPECTIVE.
YES, THAT'S HOW OUR COMMUNITIES RESPONDED, EVEN OUR NEEDS AND BOND ELECTIONS.
YOU KNOW, THE NEEDS HAVE ALWAYS PASSED.
OTHER COMMENTS THAT WE'VE GENERATED SOME QUESTIONS HERE FOR THESE GENTLEMEN.
I HAVE A QUESTION BACK AGAIN TO THE POSSIBLE SESSION IN SEPTEMBER, WHICH HAS ALREADY BEEN MADE CLEAR THAT THAT WOULD BE THE, QUOTE, VOUCHER SESSION. SO WHAT IS THE CONCESSION ON THE OTHER SIDE? ARE YOU HEARING ANYTHING ABOUT THE CONCESSION ON THE OTHER SIDE? SO IN OTHER WORDS, IF VOUCHERS BECOME SOME SEMBLANCE OF REALITY.
THEN WHAT'S THE CONCESSION ON THE OTHER SIDE? BECAUSE NOBODY'S GOING TO GIVE IT FOR FREE.
I MEAN, YOU WOULD THINK THAT I GUESS WE'RE SPECULATING AT THIS POINT, BUT IT'S ALMOST GOT TO BE SOME CHANGE IN THE FUNDING FORMULAS THAT, YEAH, WE'RE GOING TO TAKE KIDS OUTSIDE THE SYSTEM, WE'RE GOING TO LET THEM, YOU KNOW, GO TO PRIVATE SCHOOLS, BUT WE'RE GOING TO FUND THE ONES THAT REMAIN AT A HIGHER LEVEL.
RIGHT? THERE IS A MEETING AT TEN TOMORROW MORNING.
WE'RE GOING TO BE THERE AND SOME OTHER FOLKS.
SO WE MIGHT KNOW WHAT THEY'RE THINKING TOMORROW AFTERNOON.
I'D SAY THE CRYSTAL BALLS ARE NOT REAL CLEAR AT ALL WHAT'S GOING TO HAPPEN.
YEAH. OTHER COMMENTS FROM THE BOARD.
YOU'VE GIVEN US MORE THAN FOOD FOR THOUGHT.
WE APPRECIATE. THANKS FOR WAITING SO LONG.
[G. INFORMATION AND DISCUSSION ITEMS]
THANK YOU VERY MUCH.THAT'S RIGHT. FOR KINDERGARTEN AND FIRST GRADE.
YES, SIR. SO TO AND SPECIFICALLY, COMMISSIONER MORATH HAVE MANDATED A NEW PHONICS CURRICULUM FOR KINDERGARTEN AND FIRST GRADE. AND SO THERE'S A CERTAIN RUBRIC THAT MUST BE FOLLOWED.
AND DR. CLARK IS OUR EXPERT, SO WE'RE GOING TO TURN THAT OVER TO HER.
IF YOU ALL WILL REMEMBER HOUSE BILL THREE THAT WAS PASSED IN 2020, AND THEY MANDATED THE IMPLEMENTATION OF READING ACADEMIES AND THAT TO TEACH ALL OF OUR ELEMENTARY PRIMARY TEACHERS, SPECIFICALLY THE SCIENCE OF TEACHING READING.
IT'S VERY HEAVY ON PHONICS APPROACH TO READING INSTRUCTION.
AND THEN NOW THIS NEW STATE APPROVED MATERIAL LIST, WHICH IS BASED UPON A RUBRIC THAT COMMISSIONER MORATH HAS DEVELOPED TO APPROVE ALL MATERIALS, READING MATERIALS, READING PROGRAMS. WELL, WHEN WE ADOPTED OUR READING PROGRAM IN 2017, IT WAS THIS WAS NOT A PART OF THE TEXTBOOK ADOPTION PROCESS.
AND WE ARE ASKING THAT YOU ALLOW US TO PURCHASE A MATERIALS THIS SUPPLEMENTAL RESOURCE SO THAT WE CAN IMPLEMENT THIS PART OF THE NEW RUBRIC IN ORDER FOR OUR PROGRAM TO BE APPROVED FOR ALONG WITH THIS, TO ALIGN WITH HIS NEW RUBRIC THAT WE NOW HAVE TO USE.
AND THIS WILL BE A IT'S 95 PHONICS CORE.
WE FOLLOW THE SAME APPROACH THAT WE DO IN LOOKING AT TEXTBOOK MATERIALS WHERE WE USED OUR TEACHERS TO LOOK AND AT THE PROGRAM TO REALLY BE A PART OF THE OF EXAMINING THAT PROGRAM AND OUR PRINCIPLES.
AND THIS IS ONE THAT THEY HAVE SELECTED TO SAY THEY REALLY LIKE IT AND SEE THE VALUE OF IT.
[00:35:05]
AND I BELIEVE THEY SELECTED IT AT A 91% APPROVAL RATE.RIGHT. I THINK IT WAS A LITTLE HIGHER THAN THAT, BUT IT WAS IN THE 90S.
OKAY, GREAT. AND THIS IS JUST FOR INFORMATION TONIGHT.
MR. TOLBERT PROBABLY THE STUPIDEST QUESTION YOU'LL HEAR TONIGHT, DR.
STINSON, BUT IS THE COMMISSIONER.
BUT IS HE IS THIS SOMETHING THAT A COMMISSIONER NORMALLY DOES IS IMPOSE CURRICULUM ON US? MAYBE. SO. I JUST HAVEN'T NOT TO THIS DEGREE.
THIS COMMISSIONER HAS DONE MORE THAN ANY IN THE PAST.
AND I THINK THIS IS MY FOURTH COMMISSIONER TO WORK WITH THE WHAT SOME OF THE REACTION AND THE AUDIENCE THAT YOU MAY HAVE SEEN, THE ONE THAT THE COMMISSIONER, THE PROGRAM THAT THE COMMISSIONER WOULD PREFER EVERYONE TO PURCHASE COST OVER HALF $1 MILLION. AND SO THAT IS NOT THE ONE WE CHOSE, BUT IT IS THE ONE THAT THAT HE PREFERS.
HOWEVER, THIS IS ON THE STATE MANDATED LIST.
SO IF I MIGHT ADD TO THAT, HE CAN'T ASK EVERY DISTRICT IN THE STATE TO DUMP EVERYTHING THAT WE'VE INVESTED TIME, MONEY AND EFFORT INTO.
SO HE'S PROVIDED THIS RUBRIC AND SAY IF YOUR PROGRAMS MEET THE RUBRIC, THEN YOU HAVE TO GET A WAIVER AND HAVE IT PRESENTED TO THE BOARD AND HAVE THE BOARD TO APPROVE IT.
SO THIS IS THE PIECE THAT WE'RE MISSING AND THAT WE WILL, ONCE THAT WAIVER HAS BEEN RELEASED BY THE T-E-A, WE'LL HAVE TO COME BACK TO YOU AND ASK THAT YOU APPROVE THAT WAIVER SO WE COULD SUBMIT IT TO THE STATE.
YEAH. OTHER QUESTIONS OR COMMENTS?
[H. BUDGET WORKSHOP/LEGISLATIVE UPDATE]
ALL RIGHT, WE'LL MOVE TO ITEM H.BUDGET WORKSHOP LEGISLATIVE UPDATE.
DR. STINSON, YOU HAVE SOME INFORMATION.
SO AS YOU KNOW, OVER 8000 BILLS WERE FILED THIS SESSION AND ONLY 15% OF THEM PASSED.
UNFORTUNATELY, A BILL THAT WOULD PROVIDE ADDITIONAL FUNDING TO HELP ADDRESS INFLATION WAS NOT PASSED, AS YOU KNOW, AND WE EXPECT THERE TO BE ANOTHER SPECIAL SESSION IN SEPTEMBER THAT MAY DEAL WITH EDUCATION RELATED ISSUES, INCLUDING VOUCHERS.
SOME QUICK TAKES FROM THE LEGISLATIVE SESSION.
ONE LOSS. ON THE OTHER HAND, WAS UNDERFUNDED PUBLIC SCHOOLS AND NO TEACHER PAY RAISES BUILT IN.
SO THE 88TH SESSION WAS HISTORIC, HISTORIC IN WHAT THE LEGISLATURE FAILED TO DO.
GIVEN THE UNPRECEDENTED RESOURCES AT THEIR DISPOSAL WITH A BEGINNING SURPLUS OF $32.7 BILLION AND A PROJECTED ECONOMIC STABILIZATION FUND BALANCE OF NEARLY 26 BILLION.
IT SHOULD ALSO BE NOTED THAT HISTORICALLY, THE COMPTROLLER PROVIDES AN UPDATED BIENNIAL BIENNIAL REVENUE ESTIMATE, AND THE COMPTROLLER DID NOT DO THAT AT THE END OF THIS SESSION. STATE TAX COLLECTIONS AND REVENUE TRENDS, IF YOU LOOK AT THOSE, WOULD INDICATE THAT THE ACTUAL STATE SURPLUS SHOULD SIGNIFICANTLY EXCEED THE $32.7 BILLION AMOUNT MORE THAN THE UNPRECEDENTED BUDGET SURPLUS.
HOWEVER, THE SENATE MADE THAT APPROPRIATION CONTINGENT UPON THE PASSAGE OF FIVE BILLS, INCLUDING THE SWEEPING VOUCHER PROPOSAL THAT WAS ATTACHED TO THE HOUSE SCHOOL FINANCE BILL, WHICH IS, AS YOU KNOW, HOUSE BILL 100, WHICH ULTIMATELY CAUSED ITS DEMISE.
SO FOR CONTEXT, THE PROPOSED 5 BILLION FOR PUBLIC ED IS 40% OF THE 12.3 BILLION EACH CHAMBER ALLOCATED FOR THE PROPERTY TAX REDUCTION.
NUMEROUS ISSUES THAT AFFECT SCHOOL DISTRICT FUNDING STILL HAVE TO BE ADDRESSED BY THE LEGISLATURE OR NEED TO BE ADDRESSED BY THE LEGISLATURE, AND WE CONTINUE TO URGE THEM TO ADDRESS THE ADEQUACY NEEDS OF ALL SCHOOL DISTRICTS INSTEAD OF MERELY CREATING OR EXTENDING HOLD HARMLESS PROVISIONS THAT ONLY BENEFIT A SMALL NUMBER OF DISTRICTS TO THE
[00:40:09]
DETRIMENT OF THE MAJORITY.SO FOR THAT REASON, IF A 3.9 BILLION AVAILABLE FOR SCHOOL FINANCE AND THE BUDGET IS ALL WE'RE ALLOWED TO ACCESS, THEN I PROPOSE A 100% SHOULD BE PUT INTO RAISING THE BASIC ALLOTMENT TO FLOAT EVERYBODY'S BOAT EQUALLY.
GIVEN THE CIRCUMSTANCES PRIOR TO OUR BUDGET ADOPTION AT THE REGULAR MEETING ON JUNE 22ND.
ALL RIGHT. SO JUST TO REMIND YOU AND JOSH ACTUALLY WENT OVER THIS BUDGET TIMELINES, YOU CAN SEE WE DID GET AN UPDATE FROM THE CHIEF APPRAISER ON APRIL 30TH. JUNE 19TH IS THE DEADLINE FOR DISTRICTS WITH THE JULY 1ST FISCAL YEAR TO PREPARE A PROPOSED BUDGET.
JUNE 20TH IS THE LAST DAY TO PUBLISH A NOTICE AND THAT THERE'S A TEN DAY REQUIREMENT.
SO THAT'S WHY THERE'S A JUNE 20TH, BECAUSE THE LAST DAY TO ADOPT YOUR BUDGET IS JUNE 30TH.
WE WILL BE POSTING THE NOTICE IN THE STAR TELEGRAM ON FRIDAY.
AND YOU DO HAVE A COPY OF THAT.
WE SENT THAT OFF FOR TO THE STAR TELEGRAM TODAY.
SO THAT WILL BE IN THE PAPER ON FRIDAY.
THEY WILL FILE A DOCUMENT WITH TA AND THEY'LL GIVE US OUR MAXIMUM COMPRESSED TAX RATE, WHICH WILL BE PART OF THE DOCUMENTS THAT WE BRING TO THE BOARD IN AUGUST FOR OUR TAX RATE ADOPTION.
SO JUST SOME UPDATED BUDGET REPORTS.
AS DR. STINSON MENTIONED, THIS IS KIND OF THE HIGHLIGHTS FOR ANY KIND OF FUNDING PIECES.
THERE WAS ALSO AND THIS IS PERTINENT TO A LATER DISCUSSION, 588.5 MILLION FOR TRS TO TRY AND KEEP PREMIUMS UNDER ACTIVE CARE TO 10%. AND I'LL SHOW YOU WHAT THAT LOOKS LIKE.
WE JUST GOT OUR PREMIUM UPDATES ON OUR ACTIVE CARE INSURANCE LAST WEEK.
AND THEN THERE IS THE PIECE FOR THE 100 MILLION FOR THE SCHOOL SAFETY ALLOTMENT, WHICH IS $0.28 PER ADA, WHICH IS AROUND $5,700 FOR US, AND THEN $15,000 PER CAMPUS, BECAUSE THAT ONE HAS NOT BEEN SIGNED BY THE GOVERNOR.
IT IS NOT INCLUDED IN THE INFORMATION THAT WE HAVE.
WE REALLY DON'T EVEN HAVE TEMPLATES.
AND I DON'T KNOW IF YOU'RE AWARE.
AND WHEN HE SAID THAT OMAR GARCIA IS THE GODFATHER OF SCHOOL FINANCE, WE HAVE SOME VERY COMPLICATED WORKSHEETS THAT OMAR DEVELOPED MANY, MANY YEARS AGO WHEN HE WAS DEPUTY COMMISSIONER.
AND HE IS STILL DOING THOSE WORKSHEETS.
AND IT'S THE ONLY WAY THAT WE HAVE OTHER OTHER ENTITIES HAVE TRIED TO CREATE THEIR OWN.
AND IT'S A THERE'S SO MUCH SO MANY HOLD HARMLESS AND OTHER PIECES BECAUSE EVERY TIME THEY PASS NEW LAWS, THERE'S PIECES THAT GET GRANDFATHERED IN.
AND IT IS A PRETTY DAUNTING TASK TO KEEP THAT UP.
WE'RE REALLY HAPPY ABOUT THAT.
SO HERE'S WHAT OUR ESTIMATE LOOKS LIKE.
AND I'LL GIVE YOU A MINUTE TO TAKE A LOOK AT THAT AND WE'LL MOVE ON.
AND THIS IS ALL THE INFORMATION THAT HAS BEEN PREVIOUSLY PRESENTED.
YES. THE TAX RATE THAT'S ON THE SHEET THAT GOES TO THE STAR-TELEGRAM? YES, SIR. WE'RE PROPOSING 83.8315.
YES, SIR. BUT WE REALLY DON'T CONTROL THAT NUMBER YET.
THAT'S CORRECT. THAT'S BASED ON A 7% INCREASE IN OUR VALUES.
SO BECAUSE THE PROPERTY VALUES ARE PROBABLY GONNA BE MORE THAN 7%.
BUT THIS IS OUR BEST THAT WE HAVE INFORMATION WE HAVE TODAY, RIGHT? WHAT HAPPENS IN JULY THAT'S A LITTLE UNIQUE.
WE TYPICALLY WILL HAVE AT LEAST $1 BILLION OF VALUE THAT'S UNCERTIFIED.
THE TAX ASSESSOR ONLY HAS TO GET TO 95% CERTIFICATION FOR THE ENTIRE COUNTY.
AND SO WHEN WE HAVE THAT BILLION THAT'S NOT REPORTED TO TEA BECAUSE IT'S UNCERTIFIED.
SO THAT TENDS TO GIVE A LITTLE BIT OF A LAG ON OUR TAX RATE.
[00:45:06]
SO THE INTERESTING THING ABOUT THE WAY THE STATE WORKS IS THE VALUES THAT WE HAVE IN JULY ARE NOT THE VALUES THAT THE COMPTROLLER USES TO CREATE OUR STATE PORTION OF OUR FUNDING.SO IT'S A REALLY STRANGE SYSTEM.
OUR VALUES ARE TYPICALLY A LITTLE LOW IN JULY BECAUSE THERE'S UNCERTIFIED PIECES THEN IN PROPERTY.
WELL, THEN IN DECEMBER, THOSE ALL GET SUBMITTED TO THE COMPTROLLER.
THEY'RE VERY UP TO DATE AT THAT TIME.
SO THE TAX RATE, IT'S NEVER QUITE RIGHT.
THERE'S ALWAYS A LITTLE BIT OF A LAG.
IT'S A VERY STRANGE SYSTEM THAT WE HAVE.
THAT'S CORRECT. EVERYONE HAS THE SAME THING SOMETIMES THE SMALL COUNTIES, I THINK, AND I'VE ONLY BEEN IN ONE, BUT THEY TEND TO BECAUSE THEY HAVE LESS PROPERTIES TO DEAL WITH, THEY TEND TO GET A LITTLE MORE CLOSER TO YOUR ACTUAL PIECES AND DON'T HAVE SO MUCH UNCERTIFIED.
BUT MOST OF OUR UNCERTIFIED VALUES IN JULY ARE THE VAR X, WHICH IS THE UTILITY POLES AND LINES AND ALL OF THAT STUFF, BECAUSE THOSE TEND TO TAKE A WHILE.
ALL RIGHT. SO ON THE DEBT SERVICE SIDE, I'VE ALREADY GOT MY WORKSHEETS BUILT ON THAT.
JUST GIVING YOU AN UPDATE WITH THE 7%.
YOU CAN SEE THE CHANGES THERE.
IT'S PRETTY STANDARD CALCULATIONS, BUT WE'RE AT ABOUT $61 MILLION.
AND THEN WE GO DOWN TO THE EXPENDITURE SIDE.
THESE ARE BASED ON CURRENT BOND PAYMENTS.
WE'LL HAVE TO DETERMINE WHAT THAT'S ACTUALLY GOING TO BE WHEN THE VALUES COME IN AND THEN WE'LL HAVE ALL THAT PAPERWORK READY SO THAT WE CAN KEEP OUR TAX RATE LEVEL AT 41.3 $0.09 IN ORDER TO NOT EXCEED THE VOTER APPROVAL RATE, WE HAVE TO PUT THAT BOND PREPAYMENT IN.
SO I WILL SHOW YOU THE NEXT ONE.
I ALWAYS LIKE TO REMIND YOU THAT SINCE WE'RE AT JUNE 30TH, FISCAL YEAR, BOND PAYMENTS AND THE WAY YOUR FUND BALANCE IS LOOKED AT IS REALLY BASED ON ON THE BOND PAYMENTS IN A CALENDAR YEAR.
SO WHILE WE END IN JUNE 30TH, WE ALWAYS HAVE AN AUGUST BOND PAYMENT THAT NEEDS TO BE PICKED UP SO THAT WHEN WE'RE LOOKING AT FUND BALANCE, YOU CAN SEE WE'VE BEEN STAYING RIGHT AT THOSE LOW 32% LEVELS AND THAT'S REALLY GOOD FOR US WHEN WE DO OUR BOND RATINGS BECAUSE THEY LIKE TO SEE THAT HEALTHY FUND BALANCE SIMILAR TO HOW WE HAVE IN GENERAL FUND.
ALL RIGHT. A COUPLE OF OTHER UPDATES FOR YOU.
SO. ACA YOU PROBABLY DIDN'T THINK I'D BE BRINGING THAT TO YOU TONIGHT WHEN WE GET OUR INSURANCE PREMIUMS AND YOU'VE GOT TO DOCUMENT THIS IS THE NEW INSURANCE PREMIUMS AND THE CHANGES.
AND SO WITH AFFORDABILITY, THE LOWEST HEALTH INSURANCE PLAN COST AT AN INDIVIDUAL CANNOT EXCEED 9.12% OF AN EMPLOYEE MONTHLY SALARY.
SO RIGHT NOW, YOU CAN SEE WE HAVE IF YOU LOOK AT YOUR LITTLE INSURANCE PLAN DOCUMENT HERE, THE VERY FIRST LINE, THAT'S EMPLOYEE ONLY UNDER ACTIVE CARE PRIMARY.
YOU CAN SEE THAT THE TOTAL WENT UP $44 A MONTH.
AND THAT'S AFTER OUR $260 CONTRIBUTION.
SO WE HAVE TO BACK INTO THIS NUMBER.
AND FOR THOSE THAT LOVE MATH, I PUT THE FORMULA IN, BUT THE REST OF YOU CAN IGNORE IT.
IN ORDER TO KEEP OUR AFFORDABILITY LEVEL, EVERY EMPLOYEE, AT A MINIMUM, WOULD HAVE TO BE AT $16.95.
WE CURRENTLY HAVE 488 EMPLOYEES UNDER THAT MINIMUM LEVEL.
THE PENALTY IS $4,320, BUT IT'S ONLY IF AN EMPLOYEE GOES OUT TO THE MARKETPLACE, GETS INSURANCE AND IS PAID A SUBSIDY. AND SINCE 2016, WELL, THE LAST TIME WE HAD A SUBSIDY FINE WAS BACK IN 2016.
SO IT'S A RARE OCCASION THESE DAYS.
BUT WE STILL HAVE WE NORMALLY HAVE AROUND 50 EMPLOYEES THAT ARE UNDER THE LIMIT.
BUT BECAUSE THESE RATES HAVE BEEN GOING UP SO QUICKLY.
[00:50:01]
THAT DISTRICT CONTRIBUTION AT $304 FOR A DISTRICT HEALTH INSURANCE CONTRIBUTION TO CERTAIN PAY GRADES.SO OUR C1, C2, C3 MT1 AND MT2.
SO THE C'S ARE OUR CLERKS AND OUR EDUCATIONAL ASSISTANTS.
THE M ONE AND TWO ARE OUR BUS MONITORS, OUR CUSTODIANS AND OUR CHILD NUTRITION WORKERS.
BUT NOT ALL OF THEM WILL TAKE INSURANCE.
SO IT'S GOING TO BE A MUCH LOWER COST.
BUT MOST OF THE EMPLOYEES IN THE PAY GRADE C, FOUR AND MT THREE HAVE BEEN WITH THE DISTRICT.
THEY'RE IN MORE HIGHER LEVEL POSITIONS.
SO IT'S UNLIKELY BECAUSE THEY'RE PRETTY CLOSE TO THE 1695.
SO I THOUGHT IF WE CAPTURED THESE FIVE PAY GRADES AND HAVE A DIFFERENT PIECE OF CONTRIBUTION TOWARD THEIR HEALTH INSURANCE COULD TAKE CARE OF THE ISSUE WITHOUT US HAVING TO DO MASSIVE INCREASES IN THOSE LOWER LEVELS.
ARE THERE ANY QUESTIONS ON THAT? 247 IS AN ANNUAL AMOUNT.
YES. IF EVERY ONE OF THOSE EMPLOYEES TAKES, WE WON'T GET ANYWHERE CLOSE TO THAT.
NO, NO. AND THEN THE LAST PIECE, JUST LETTING YOU KNOW IS EMPLOYEE WITHHOLDING IS GOING UP THIS YEAR, BEGINNING SEPTEMBER 1ST, FROM 8% TO 8.25% THERE.
JUST FOR YOUR EDIFICATION, THERE WAS A BILL IN THE HOUSE OR NO, IT WAS IN THE SENATE, I THINK IT WAS, THAT WAS GOING TO CAUSE THAT 8.25 TO GO TO 9% IN JANUARY.
BUT IT DID NOT MAKE IT THROUGH THE HOUSE OR THE SENATE.
DR. STINSON, DOES ANYBODY HAVE ANY QUESTIONS FOR KATIE? KATIE, WE APPRECIATE ALL THE HARD WORK YOU'VE DONE.
WE KNOW THAT BUDGET PREPARATION IS A YEAR LONG PROJECT AND YOU'VE WALKED US THROUGH THOSE STEPS AND TO PREPARE US FOR JUNE 22ND. SO I APPRECIATE YOUR HARD WORK.
THAT'S THE GOOD NEWS. WE ARE GOING TO ADOPT A BUDGET IN JUNE.
THE BAD NEWS IS STATE FUNDING HASN'T BEEN FINALIZED YET.
SO I WOULD ASSUME IN THE FALL WE'LL SEE BUDGET AMENDMENTS.
IF THE STATE FUNDING INCREASES, YES, BECAUSE THE REVENUE HAS TO BE ADOPTED.
SO. ANYONE ELSE HAVE QUESTIONS REGARDING THE LEGISLATIVE UPDATE OR THIS BUDGET UPDATE? GO AHEAD, MR. TOLBERT.
WHAT WAS HER REQUEST OF US? IF YOU HAD ANY OTHER DIRECTION FOR HER PRIOR TO JUNE 22ND, IF YOU HAVE ANY QUESTIONS TONIGHT.
THAT'S ALL SHE'S JUST RECAPPING.
WE'RE NOT NEEDING YOU TO TAKE ACTION AT ALL ON ANYTHING.
OKAY. SO SHE DOESN'T NEED ANY DIRECTION? NO, SIR. I GET IT FROM DR.
ANY OTHER COMMENTS OR QUESTIONS?
[I. SEPARATE ACTION ITEMS]
WE'LL GO TO SEPARATE ACTION ITEMS CONSIDERED PERSON EXCUSE ME.CONSIDER PERSONNEL ITEMS THAT DISCUSS IN CLOSED SESSION.
DO I HEAR A MOTION FOR PERSONNEL ITEMS? MR. PRESIDENT, I MOVE THAT THE BOARD APPROVE AND ADOPT ALL PERSONAL ITEMS AS DISCUSSED IN CLOSED SESSION.
ALL IN FAVOR OF THE MOTION SIGNIFY BY A RAISED HAND.
DR. STINSON, DO YOU HAVE AN ANNOUNCEMENT FOR.
I DO. WE WOULD LIKE TO WELCOME MISS KENJI FORD AS A NEW PRINCIPAL IN BIRDVILLE ISD.
WE KNOW THAT SHE WILL DO A FANTASTIC JOB AND WE ARE EXCITED HER.
EXCITED TO WELCOME HER TO OUR PRINCIPAL TEAM.
AND DID SOMEONE SAY TODAY IS HER BIRTHDAY? SO HAPPY BIRTHDAY PRESENT.
YEAH. HAPPY BIRTHDAY, PRINCIPAL FORD.
WE HAVE NO OTHER ITEMS ON OUR AGENDA TONIGHT.
[J. FUTURE BOARD MEETINGS]
OUR NEXT BOARD MEETING WILL BE THURSDAY.DO I HEAR A MOTION TO ADJOURN.
KUNKEL MAKES THE MOTION SECOND BY MR. DREES. ALL IN FAVOR SAY AYE? MOTION ADJOURNS.
THE MEETING ADJOURNED AT 8:21.
* This transcript was compiled from uncorrected Closed Captioning.