[00:00:01] >> GOOD EVENING AND WELCOME TO THE HAYS CISD BOARD OF TRUSTEES BUDGET WORKSHOP MEETING. [A. CALL TO ORDER: Establish a quorum] HELLO TO EVERYBODY IN ATTENDANCE, AND THOSE OF YOU JOINING US ONLINE. TODAY IS JUNE 6TH, 2024, THE TIME IS 5:30 PM. A QUORUM HAS BEEN ESTABLISHED WITH ALL BOARD MEMBERS PRESENT. AT THIS TIME, THE BOARD WILL ADJOURN TO A CLOSED SESSION [B. CLOSED SESSION] IN ACCORDANCE WITH THE TEXAS OPEN MEETING ACT, TEXAS GOVERNMENT CODE SECTION 551, SUBCHAPTERS D AND E OR TEXAS GOVERNMENT CODE SECTION 4181.833(F). THE TIME IS STILL 5:30 PM. WE ARE BACK IN OPEN SESSION. THE TIME IS 7:03 PM. A QUORUM HAS ALREADY BEEN ESTABLISHED. ALL BOARD MEMBERS ARE PRESENT. THANK YOU AGAIN TO THOSE OF YOU THAT ARE HERE WITH US AND THOSE WATCHING ONLINE. OUR NEXT ITEM ON THE AGENDA IS PUBLIC FORUM. WE DO NOT HAVE ANY SPEAKERS TONIGHT, IS THAT CORRECT? WE WILL LOOK FORWARD TO OUR NEXT MEETING WHEN WE HAVE SPEAKERS. NEXT WE'RE GOING ON IN OUR ACTION ITEMS, CONSIDERATION, [D.1. Consideration and possible action, if any, resulting from closed session] AND POSSIBLE ACTION, IF ANY, RESULTING FROM OUR CLOSED SESSION. LET ME READ OUR MOTION. ALL RIGHT. TEAM, THE SUGGESTED MOTION IS THAT THE HAYS CISD BOARD OF TRUSTEES APPROVE THE SUPERINTENDENT'S RECOMMENDATIONS FOR CONTRACTUAL EMPLOYMENT OF THE ACADEMIC DEAN AT LEHMAN HIGH SCHOOL, ASSISTANT PRINCIPALS AT BUDA ELEMENTARY, HEMPHILL ELEMENTARY, KYLE ELEMENTARY, SCIENCE HALL ELEMENTARY, TOBIAS ELEMENTARY, SIMON MIDDLE SCHOOL, AND LEHMAN HIGH SCHOOL AS DISCUSSED. MOVED BY MISS PETREA, SECONDED BY MR. FLORES. ANY DISCUSSION? ALL THOSE IN FAVOR? ANY OPPOSED? MOTION CARRIES 7-0. DR. WRIGHT. >> THANK YOU VERY MUCH. GOOD EVENING, EVERYONE. I AM HAPPY TO ANNOUNCE THAT THE FOLLOWING INDIVIDUALS HAVE BEEN APPROVED FOR ADMINISTRATIVE POSITIONS WITHIN THE SCHOOL DISTRICT, AND LET ME START WITH KAYCI RAMOS. SHE'LL BE THE NEW ASSISTANT PRINCIPAL AT BUDA ELEMENTARY. THEN WE HAVE JULIE ROSALES WHO WILL BE THE ASSISTANT PRINCIPAL AT HEMPHILL ELEMENTARY. AND THEN WE HAVE KIRSTEN STONE, WHO WILL BE THE ASSISTANT PRINCIPAL AT KYLE ELEMENTARY. MISSY OWENS WILL BE THE ASSISTANT PRINCIPAL AT SCIENCE HALL ELEMENTARY. JENNE BRAUCHLE, WILL BE THE ASSISTANT PRINCIPAL AT TOBIAS ELEMENTARY. SARAH SPARKS WILL BE THE ACADEMIC DEAN AT LEHMAN HIGH SCHOOL. STEPHANIE CARTER WILL BE ONE OF THE ASSISTANT PRINCIPALS AT SIMON MIDDLE SCHOOL, AND YESENIA FLORES WILL BE ONE OF THE ASSISTANTS AT LEHMAN HIGH SCHOOL. ALL OF THESE PEOPLE HAVE BEEN PART OF OUR HAYS CISD FAMILY, BUT I'M EXCITED THAT THEY ARE BEING PROMOTED INTO NEW POSITIONS AND WELCOME THEM AND KNOW THAT THEY'RE GOING TO DO GREAT THINGS IN THEIR ROLE, AND THEY HAVE MY PLEDGE FOR SUPPORT SO THAT THEY'LL HAVE ALL THE TOOLS SO THAT THEY CAN HAVE A SUCCESSFUL RUN WITH US. CONGRATULATIONS TO EACH ONE OF THESE INDIVIDUALS. [APPLAUSE] >> ALL RIGHT, TEAM. THAT MOVES US TO THE BIG TOPIC AT HAND, OF COURSE, WHICH IS OUR BUDGET WORKSHOP. WE ARE GOING TO DO ANOTHER QUICK RECESS. WE THOUGHT WE WOULD HAVE JUST A MORE COLLABORATIVE SETUP, SO WE'RE GOING TO SET UP THE FLOOR OUT HERE. WE'LL TAKE JUST A QUICK RECESS, MOVE SOME TABLES, AND WE WILL JOIN YOU GUYS OUT HERE ON THE FLOOR. [00:09:48] >> TEAM. THANK YOU AGAIN. THANK YOU FOR YOUR PATIENCE AS WE GOT THE ROOM RESET. WE ARE NOW ON OUR INFORMATION ITEM NUMBER ONE, [E.1. 2024-2025 Budget Workshop] OUR 2024 2025 BUDGET WORKSHOP, SO I WILL TURN IT OVER TO DR. WRIGHT FIRST. [00:10:04] >> THANK YOU SO MUCH. I WANT TO JUST TAKE A TRIP DOWN MEMORY LANE AND LET EVERYBODY IN THE COMMUNITY, ALL OF YOU ARE AWARE OF WHAT'S GOING ON IN THE STATE. WE RECEIVED $6,160 PER STUDENT IN OUR BASIC ALLOTMENT, AND WE HAVE RECEIVED THAT SAME AMOUNT SINCE 2019, AND WE WERE HOPEFUL THAT THIS LAST LEGISLATIVE SESSION WOULD BRING NEW DOLLARS INTO THE DISTRICT BECAUSE THE STATE WAS CARRYING A $33 BILLION SURPLUS. IN FACT, BEFORE THEY ADJOURNED THE SESSION, THERE WAS 4.5 MILLION EARMARKED FOR PUBLIC EDUCATION. HOWEVER, IT WAS HELD HOSTAGE BECAUSE THE STATE COULDN'T COME TO A CONSENSUS ON VOUCHERS FOR PUBLIC OR JUST FOR CHILDREN ACROSS THE STATE OF TEXAS TO PAY PUBLIC DOLLARS FOR PRIVATE EDUCATION AND SO THE GOVERNOR BASICALLY DECIDED THAT WE'RE JUST GOING TO KEEP THE MONEY IN ITS PLACE, AND SO THAT RESULTED IN NO INCREASE. SINCE 2019, AND SINCE THE PANDEMIC, THE INFLATION INDEX HAS GROWN AROUND 22%, AND IT'S THE HIGHEST THAT WE'VE EVER EXPERIENCED WITHOUT AN INCREASE. THIS BOARD HAS BEEN VERY EMPLOYEE FRIENDLY AS FI, AND WE WANTED TO MAKE SURE THAT OUR EMPLOYEES WERE TAKEN CARE OF IN THE HEIGHT OF THE PANDEMIC AND SO WE RELEASED FUNDS AND BOUGHT DOWN OUR FUND BALANCE STRATEGICALLY SO THAT WE COULD MAKE SURE THAT WE COULD FILL ALL OF OUR POSITIONS SO THAT OUR KIDS DIDN'T HAVE TO SUFFER AS A RESULT OF THE PANDEMIC, AND WE ALSO ADDED A LOT OF POSITIONS TO HELP WITH THERAPY AND WITH COUNSELING AND WITH ALL OF THE ACCELERATED LEARNING NEEDS AND INTERVENTION COMING OUT OF THE PANDEMIC. OVER THE PAST FIVE YEARS, AND I'LL SHOW YOU IN A SLIDE HERE IN JUST A MINUTE, WE HAVE STRATEGICALLY BOUGHT DOWN OUR FUND BALANCE DUE TO REVENUE SHORTFALLS, AND I'M GOING TO CALL IT REVENUE SHORTFALLS BECAUSE WE REALLY DON'T HAVE A BUDGET DEFICIT IF THE STATE WOULD HAVE FUNDED US AT THE LEVEL THAT THEY WERE SUPPOSED TO FUND US AT AND SO WE ARE EXPERIENCING A REVENUE SHORTFALL BECAUSE WE'VE BEEN STUCK AT 2019 VALUES, EVEN THOUGH WE ARE GOING INTO THE 25 FISCAL YEAR BUDGET. BECAUSE OF DECISIONS MADE COLLECTIVELY BY THIS BOARD AND ADMINISTRATION, WE HAVE BEEN ABLE TO PROVIDE COST OF LIVING INCREASES IN ADVANCE AND IF YOU'LL REFER TO THE SLIDE THAT'S UP ON THE BOARD. YOU CAN SEE BEGINNING IN 2020, WE STARTED INCREASING THE AMOUNT OF THE COST OF LIVING INCREASES SO THAT WE COULD LET PEOPLE EXPERIENCE THE REVENUE EARLY AND THEN HOPEFULLY WEATHER THE STORM. DURING THIS FIVE YEAR PERIOD, IF YOU'LL TRACK THOSE LINES, THE TEACHER LINE IS THE BLUE DOTTED LINE, AND THE RED DOTTED LINE IS THE PARAPROFESSIONAL AUXILIARY BUS DRIVER, AND THEN THE YELLOW DOTTED LINE IS ADMINISTRATIVE AND BUSINESS PROFESSIONAL. TRACK, AND OVER FIVE YEARS, YOU'LL SEE THAT OUR PAY INCREASE ROSE TO THE LEVEL OF 25%. IF YOU DO THE MATH ON THAT, THAT'S 5% PER YEAR FOR ALL PAY GROUPS, AND THEN FOR OTHER THAN ADMINISTRATIVE AND BUSINESS PROFESSIONAL, AND THAT AVERAGED AT 4.5 AND SO WE MADE THE CONSCIOUS DECISION TO FILL THOSE VOIDS SO THAT PEOPLE COULD ENJOY THAT MONEY SOONER THAN LATER. I KNOW SOMETIMES WHEN YOU MOVE FORWARD, PEOPLE DON'T ALWAYS REMEMBER WHAT HAS HAPPENED IN THE PAST, BUT WE HAVE REALLY TRIED TO FAITHFULLY TAKE CARE OF OUR EMPLOYEES, AND SO THEY HAVE BEEN ABLE TO BENEFIT FROM EACH OF THE LAST FIVE YEARS AT THE TUNE OF 5%. TYPICAL RAISE IS 3%, AND IF YOU'LL LOOK AT THAT BLUE LINE, IF WE WOULD HAVE JUST DONE 3% PER YEAR, THEN WE WOULD BE AROUND PROBABLY 17.5 AND SO WE HAVE EXCEEDED THAT AMOUNT BY 7.5% AND SO I JUST WANTED TO BRING EVERYBODY UP TO SPEED ON THAT AND IT'S PAID OFF FOR US. WE'VE BEEN ABLE TO HIRE VETERAN TEACHERS. OUR TURNOVER RATE THIS PAST YEAR FOR OUR TEACHERS WAS ONLY 6.6%, AND SO WE'RE EXCITED TO BE ABLE TO RECRUIT AND RETAIN [00:15:03] HIGH QUALITY TEACHERS BECAUSE WE ALL KNOW THAT THEY'RE THE ONES THAT MAKE THE TRUE DIFFERENCE FOR OUR STUDENTS IN THE DISTRICT. I WANTED TO START WITH THAT AS A REFRESHER AND THEN NEXT, I WANTED TO MOVE TO OUR FUND BALANCE HISTORY TO SHOW YOU WHAT HAS HAPPENED TO OUR FUND BALANCE. OUR FUND BALANCE FOR THOSE OF YOU AT HOME. A FUND BALANCE IS BASICALLY OUR SAVINGS ACCOUNT AND IT'S ALSO OUR CASH ACCOUNT SO THAT WE ARE ABLE TO MAKE OUR PAYROLL EACH MONTH AND ALSO PAY FOR ALL THE THINGS THAT PEOPLE NEED IN THE FORM OF ACCOUNTS PAYABLE. COMING OUT OF THE PANDEMIC, WE WERE AT ONE OF THE HIGHEST LEVELS THAT OUR FUND BALANCE HAS BEEN A LITTLE OVER $71 MILLION AND THEN EACH YEAR WHEN WE DECIDED TO HAVE A 7% INCREASE, AND THEN A 6.5% INCREASE AND THEN A 4.5% INCREASE AND THEN A 3% INCREASE, WHICH AVERAGES UP TO THAT 5, YOU CAN SEE THAT IT'S A PERPETUAL COST. IF YOU OPERATE ON A REVENUE SHORTFALL FOR LONG ENOUGH, THEN YOU'RE GOING TO EAT INTO YOUR FUND BALANCE. IF YOU'LL LOOK AT THIS GRAPH, WHAT WE'RE LOOKING AT, 2024, AS WE CLOSE THIS YEAR, IF WE REALIZE THE SHORTFALL THAT WE BUDGETED FOR THIS YEAR, WE WILL BE AT AROUND $30 MILLION AND OUR BOARD POLICY WANTS US TO KEEP AT LEAST 25%, AND THAT'S GOING TO BE RIGHT AROUND $60 MILLION. BUT WE REALLY HAD THE DISCUSSION OF WE REALLY JUST WANT TO LEAVE IT IN THERE WHEN OUR KIDS NEED THE SERVICES MORE THAN EVER COMING OUT OF THE PANDEMIC, OR DO WE WANT TO SPEND IT? WE CHOSE TO SPEND IT AT THE TIME, AND THAT SERVED US WELL, AND I THINK WE TOOK CARE OF OUR KIDS AND WE TOOK CARE OF OUR STAFF THE WAY THAT WE NEED TO. NOW WE'RE AT A PLACE WHERE WE REALLY CAN'T GO ANY FURTHER BECAUSE IN ORDER FOR US TO MAKE PAYROLL EACH MONTH, WE HAVE TO RETAIN THE AMOUNT OF MONEY THAT WE HAVE IN EXISTENCE, AND WE NEED TO START GOING THE OTHER WAY AND ACTUALLY START BUILDING THE THING BACK UP. THIS YEAR, WE'RE LOOKING AT A $15 MILLION REVENUE SHORTFALL AND SO WE HAVE SOME IDEAS AND SOME STRATEGIES IN WHICH TO HOPEFULLY WRITE THE SHIP, SO TO SPEAK. BUT WE'RE VERY VERY HOPEFUL THAT THE STATE POLITICIANS AND OUR GOVERNOR WILL DO THE RIGHT THING BY KIDS ACROSS THE STATE AT THE JANUARY 2025 LEGISLATIVE SESSION, AND THAT THEY'LL WORK OUT ALL OF THE POLITICAL DIFFERENCES AND THEN FUND US AT THE LEVEL THAT WE NEED TO BE FUNDED AT, AND I'LL GO INTO THAT HERE IN A FEW MINUTES. BUT I WANTED TO SHOW YOU THAT WE'VE ALSO BEEN VERY STRATEGIC OVER TIME TO PUT THE MONEY IN PLACES THAT WE REALLY FELT LIKE WE NEEDED TO ADDRESS AND SO THIS IS OUR SPENDING BY FUNCTION BY PERCENTAGE IN THE FISCAL YEAR 2020 BUDGET, AND I'M GOING TO SHOW YOU A FIVE YEAR COMPARISON IN THE NEXT SLIDE WITH 2024. YOU CAN SEE THAT IN THIS PARTICULAR CHART, AS WE ALWAYS DO, WE SPEND THE BULK OF OUR MONEY ON FUNCTION 11, WHICH IS INSTRUCTIONAL SERVICES, AND MOST OF THAT IS 87% OF THAT IS IN TEACHER, LIBRARY, COUNSELORS, AND NURSE SALARIES, ALONG WITH OTHER SUPPORT STAFF. THEN THE NEXT HIGHEST ITEM IS WE ALWAYS TASE MAX. HE'S THE NOT ONLY THE GIG PIG, BUT HE'S A UTILITY PIG, AND IT COSTS A LOT FOR WATER AND ELECTRICITY AND NATURAL GAS AND FUEL FOR OUR BUSES AND ALL THOSE TYPES OF THINGS. THAT'S OUR SECOND HIGHEST PERCENTAGE IN 2020, AND THEN IT GOES DOWN FROM THERE AND SO YOU CAN LOOK AT THOSE NUMBERS BY PERCENTAGE, AND THEN DID THE SAME THING FOR FIVE YEARS LATER IN 2024, AND YOU CAN SEE THAT THE INSTRUCTIONAL AMOUNT WENT UP A BIT AS DID SOME OF THE OTHER AREAS. BUT WHAT I WANTED TO SHOW YOU IS THE CONSCIOUS DECISION THAT WE MADE, EVEN THOUGH WE'VE GAINED OVER 5,000 KIDS IN THE SAME FIVE YEAR PERIOD. WE HAVE NOT ADDED IN THE AREA OF SCHOOL ADMINISTRATION OR GENERAL ADMINISTRATION AND OUR STAFFING FORMULA IS DICTATED THAT WE SHOULD HAVE, BUT WE PURPOSEFULLY DID NOT AND SO THOSE ITEMS OR BARS THAT GO AND DIP BELOW THE LINE SHOW YOU A DECREASE OVER THE FIVE YEAR PERIOD OF TIME. [00:20:03] I WANTED TO HIGHLIGHT THOSE FOR YOU. >> TO SHOW YOU THE AREAS THAT WE'RE ACTUALLY INCREASING AND SPENDING MONEY, AND AS IT SHOULD BE, WE SHOULD BE TAKING CARE OF OUR KIDS. IN FUNCTION 11, WE'VE INCREASED THAT BY ALMOST A FULL PERCENTAGE POINT. IN FUNCTION 13, WHICH IS INSTRUCTIONAL STAFF DEVELOPMENT. COMING OUT OF THE PANDEMIC, WE HAD MORE AND MORE NEED FOR PROFESSIONAL DEVELOPMENT, TRAINING, INTERVENTIONIST, FOR COACHING. WE UTILIZED THOSE FUNDS, AND THEN 21 IS INSTRUCTIONAL ADMINISTRATION. THAT IS LIKE YOUR DIRECTOR OF CTE, THAT'S YOUR DIRECTOR OF ADVANCED ACADEMICS, THOSE TYPES OF POSITIONS BECAUSE WE REALLY FELT WITH OUR BOARD AND SUPERINTENDENT GOALS AND FOCUSING ON ADVISING IN SPECIFIC AREAS OF WEAKNESS WE REALLY NEEDED TO PUT MONEY IN THOSE AREAS. THEN THE NEXT LARGEST AREA THAT YOU'LL SEE IS FUNCTION 36, WHICH IS OUR FINE ARTS AND ATHLETICS. WE WANT TO MAKE SURE BECAUSE WE BELIEVE IN 100% HAZE THAT WE FUND THOSE ORGANIZATIONS, BECAUSE WE BELIEVE THAT'S THE BEST FORM OF MENTAL HEALTH. BUT ALSO WANTED TO SHOW YOU THE AREAS THAT HAVE DECREASED, SO FUNCTION 23 IS SCHOOL AND CAMPUS LEADERSHIP. THAT'S DECREASED OVER THE LAST FIVE YEARS. I WANTED TO SHOW YOU FUNCTION 41, WHICH IS GENERAL ADMINISTRATION. THAT HAS DECREASED OVER TIME AND KEEP IN MIND, GUYS, WE'VE ADDED 5,000 KIDS IN THIS FIVE YEAR PERIOD, BUT YET WE'VE DECREASED THESE ADMINISTRATIVE BUDGETS. AND I KNOW A LOT OF TIMES IN THE COMMUNITY, PEOPLE THINK THAT ESPECIALLY SINCE WE'RE MOVING INTO A NEW BUILDING, A LOT OF TIMES PEOPLE THINK, WELL, Y'ALL ARE SPENDING ALL THIS MONEY IN THIS NEW PLACE. WE ARE SO THANKFUL THAT THE COMMUNITY ALLOWS US TO BE IN THIS NEW PLACE. I THINK IT WILL ALLOW US TO GLEAN SOME EFFICIENCIES, BUT WE HAVEN'T ADDED STAFF, AND WE'VE JUST CONTINUED TO ADD RESPONSIBILITIES TO THE PEOPLE THAT WE HAVE, EVEN THOUGH OUR STAFFING FORMULAS WOULD HAVE DICTATED OTHERWISE. I WANTED TO MAKE SURE THAT I POINTED THAT OUT. ALSO, EVEN THOUGH WE'VE HAD HOUSE BILL 3 WITH SAFETY AND SECURITY, AND ALL THE THINGS WE HAVE BEEN ABLE TO BECOME MORE EFFICIENT AND WE'VE DECREASED OUR SPENDING OVER TIME. I THOUGHT THIS WAS IMPORTANT FOR YOU TO SEE THE FIVE YEAR TREND. BUT THEN THE NEXT SLIDE IS THE ONE I WANTED TO REALLY END ON. THIS IS WHAT I STARTED WITH, OUR BASIC ALLOTMENT FOR MAINTENANCE AND OPERATIONS AND JUST A QUICK PRIMER FOR THOSE OF YOU THAT ARE IN THE COMMUNITY, WE GET TWO BUCKETS OF MONEY. ONE IS OUR MAINTENANCE AND OPERATION, AND THE OTHER ONE IS INTEREST AND SINKING. THIS ONE IS THE MAINTENANCE AND OPERATION FUND. THE MONEY THAT BUILT THIS BUILDING IS FROM THE INTEREST AND SINKING FUND. THERE ARE TWO DIFFERENT FUNDS, THESE ARE THE FUNDS THAT ACTUALLY PAY FOR ALL OF OUR GENERAL BUDGET. YOU CAN SEE THAT OVER TIME, THAT RED LINE IS THE BASIC ALLOTMENT. EVEN THOUGH INFLATION HAS INCREASED 22% OVER THE LAST FIVE YEARS, WHAT DOES THAT RED LINE DO? NOTHING. IT'S FLAT. BUT IF WE WERE IN THEORY TO TRACK WITH INFLATION, IT WOULD BE RIGHT AROUND $7,558 A KID. LET ME TELL YOU WHAT IT LOOKS LIKE AS WE GO UP AND WE TREND UP. IF WE JUST ADDED $500 TO THE BASIC ALLOTMENT AT OUR ADJUSTED ADA RATE OF 22,352, THAT WOULD MEAN 11 MILLION EXTRA DOLLAR FOR US. IF IT WENT UP $100 PER KID, IT WOULD MEAN 22 MILLION EXTRA DOLLARS FOR US, AND IF IT WAS WHERE IT'S SUPPOSED TO BE AT $7,588 A KID, IT WOULD MEAN $33,500,000. KEEP IN MIND, THIS WOULD HAVE BEEN ACCRUING OVER THE LAST FIVE YEARS. I'M JUST TALKING ABOUT IF THEY JUST ADJUSTED IT BY 500,000 OR 1,500 FOR ONE YEAR. BUT THINK ABOUT IF THEY WOULD HAVE BEEN KEEPING PACE WITH INFLATION. GUYS, ALL THIS IS TO SAY, THAT IN 2019, WE WERE THE 42ND STATE IN PER PUPIL FUNDING OUT OF ALL 50 STATES IN THE NATION. THINK WHERE WE ARE NOW. I HAVEN'T SEEN THE LATEST LATEST CALCULATION ON THAT, BUT WE'RE STILL IN THE BOTTOM QUARTILE FOR PER PUPIL FUNDING. A LOT OF THE POLITICIANS WILL TELL YOU THAT THEY'VE INCREASED [00:25:03] THAT AMOUNT TO $12,000 PER STUDENT, AND THEY'RE RIGHT. BECAUSE THEY RAISE THE HOMESTEAD EXEMPTION UP $100,000 NOW FOR EACH ONE OF US, WHICH I'M SO THANKFUL FOR, BUT IT'S NOT MONEY THAT WE CAN SPEND. IT'S JUST A TRADE OFF. THEY'RE REPLACING ONE FOR THE OTHER, WE STILL GET TO SPEND $6,160 PER STUDENT UNLESS THERE'S A WEIGHTED FUNDING THAT GOES ALONG WITH THAT PARTICULAR CHILD. THEN WE ONLY GET 93% OF THAT 6160 BECAUSE OUR ATTENDANCE RATES AFTER THE PANDEMIC HAVE DECREASED DRASTICALLY. I SAY THIS BECAUSE HOPEFULLY, THERE ARE PEOPLE IN THE COMMUNITY THAT WILL SEE THE SMOKE AND MIRRORS GAME THAT IS BEING PLAYED AT THE STATE LEVEL AND WE URGE ELECTED OFFICIALS TO REALLY GIVE US THE RELIEF THAT WE NEED. NOW, IT'S LOOKING LIKE THAT VOUCHERS WILL PASS THIS TIME. I THINK THAT THERE WERE ENOUGH ANTI VOUCHER PEOPLE THAT WERE DEFEATED. IT LOOKS LIKE VOUCHERS WILL PASS. IN THE LAST SESSION, THEY WERE TALKING ABOUT GIVING PARENTS THAT CHOSE TO USE VOUCHERS ANYWHERE $8,000 -10,000, AND WE'RE AT 6160. SO THINK ABOUT THAT POSSIBLY BEING A LITTLE HYPOCRITICAL AND THEN THINK ABOUT THE ACCOUNTABILITY THAT GOES WITH YOUR PUBLIC DOLLARS THAT YOU'RE SENDING TO THE STATE TO BE DISTRIBUTED AND THINK ABOUT WHAT MIGHT BE THE RIGHT THING TO DO FOR STUDENTS IN THE STATE OF TEXAS. I LOVE BEING A TEXAN, I LOVE BEING AN AMERICAN. I REALLY BELIEVE THAT WE DO HAVE THE TEXAS AMERICA AND WE HAVE A LOT OF PEOPLE THAT WANT TO COME HERE. YOU CAN LOOK AT OUR GROWTH OVER 1,000 STUDENTS PER YEAR. PEOPLE ARE WANTING TO COME TO THIS AREA. THEY NEED THE SKILLS AND TRAINING. WE'VE BEEN ABLE TO PROVIDE THAT, AND THAT'S WHY THE STATE OF TEXAS IS GROWING. BUT IN ORDER TO CONTINUE TO KEEP PACE AND TO PROVIDE ALL OF THE EDUCATIONAL RESOURCES THAT OUR KIDS NEED, WE NEED THAT NUMBER TO CONTINUE TO INCREASE. I THINK THAT IF WE GET TO $7,500 PER KID, THAT'LL HELP US OUT A LOT, BUT I DON'T THINK IT'LL EVEN PUT US LIKE NUMBER 30 OUT OF ALL 50 STATES. I STILL THINK WE'LL BE LAGGING REALLY FAR BEHIND. I JUST WANTED TO PAINT THAT PICTURE AND GIVE EVERYBODY IN THE COMMUNITY AN OVERVIEW OF WHAT THE LAST FIVE YEARS HAS LOOKED LIKE. BUT I'M REALLY APPRECIATIVE OF YOU FOLKS THAT HAVE BEEN ON THE SCHOOL BOARD AND THAT HAVE WORKED WITH US TO TAKE CARE OF OUR EMPLOYEES AND OUR KIDS BECAUSE WE HAVEN'T MISSED A BEAT OVER THE LAST FIVE YEARS, BUT IT COST US MONEY THAT CAME OUT OF OUR FUND BALANCE, BUT WE MADE A CONSCIOUS DECISION TO DO IT, BUT WE JUST CAN'T CONTINUE TO GO THERE ANYMORE UNTIL WE GET AN INCREASE. WHAT WE'RE GOING TO BE LOOKING AT TODAY, WE'RE PROPOSING AND HOPEFULLY IT'LL ONLY BE ONE YEAR BEFORE THE STATE DECIDES TO DO THE RIGHT THING. AND SO THAT'S KIND OF MY OVERVIEW AND I'M GOING TO TURN IT OVER TO RANDY RIGHT NOW AND HE'S GOING TO GIVE YOU A HIGH LEVEL OF WHAT THE BUDGET IS GOING TO LOOK LIKE OR WHAT THE NUMBERS ARE LOOKING LIKE RIGHT NOW. RANDY. >> BEFORE WE GET TO RANDY, EXCUSE ME, [NOISE] I JUST WANT TO MAKE SURE BECAUSE YOU GAVE US A LOT OF GREAT INFORMATION. THANK YOU FOR THAT. I KNOW THAT WE PROBABLY HAVE SOME QUESTIONS THAT HAVE ALREADY COME UP SO I'M GOING TO LOOK TO MY RIGHT FIRST. ANY QUESTIONS? GO OVER TO MY LEFT. MISS PETRIE. >> JUST A QUICK CLARIFICATION. THE GRAPH WHERE IT SHOWS FUNCTION 11 INSTRUCTIONAL SERVICES, 58%. I KNOW YOU SAID 87% FOR SALARIES, BUT CAN YOU JUST CLARIFY THAT THAT INCLUDES CURRICULUM, MATERIALS, TEXTBOOKS, MANIPULATIVES, ALL OF THAT? >> YES. >> OKAY. PERFECT. THEN MY OTHER QUESTION IS ON THE PERCENT CHANGE IN FUNCTIONAL CATEGORIES. THANK YOU SO MUCH FOR PROVIDING THIS. THIS IS REALLY HELPFUL TO KIND OF SEE WHAT AREAS WE'VE HAD TO NEGLECT, FRANKLY. MY ONLY CONCERN OR QUESTION, IS ON SAFETY AND SECURITY BECAUSE I FEEL LIKE WE'VE DONE A LOT THERE, AND MAYBE WE HAVEN'T DONE AS MUCH TO KEEP UP WITH THE GROWTH. BUT WITH THE CYBERSECURITY STUFF THAT WE'VE HAD TO DO AND A LOT OF THE DOOR MECHANISMS AND THE THINGS THAT THE STATE HAS PUT ON US. I JUST WANT TO MAKE SURE THAT THAT SAY SECURITY SERVICES ISN'T SOME KIND OF IT THING BECAUSE I JUST DIDN'T SEE SAFETY ROLLED OUT. >> KEEP IN MIND THAT THIS IS THE M&O BUDGET, AND MOST OF THE SAFETY AND SECURITY IS GOING TO COME OUT OF OF THE SAFETY GRANTS, AND ALSO OUT OF BOND FUNDS. >> WELL, SO THAT'S A GOOD CLARIFICATION [00:30:01] TO MAKE SO THAT OUR COMMUNITY DOESN'T LOOK AT THIS AND SAY, THEY DON'T SPEND ANY MONEY ON SAFETY AND SECURITY. THEY'RE TERRIBLE. THANK YOU FOR MAKING THAT CLARIFICATION BECAUSE I FEEL LIKE WE HAVE DONE QUITE A BIT IN THAT PARTICULAR AREA. IT DOESN'T SAY ON HERE, THIS ONLY PERTAINS TO X BUDGET. MAYBE THAT MIGHT BE HELPFUL FOR FOLKS, YOU JUST GLANCING AT THIS AND MAYBE NOT KNOWING WHAT BUDGET THIS IS REFERRING TO. >> ABSOLUTELY. >> OR BUCKET AS WE LIKE TO SAY AROUND HERE. >> PRETTY MUCH, WE'RE JUST GOING TO FOCUS ON THE M&O BUDGET FOR TONIGHT. >> GOT IT. THANK YOU. >> THANK YOU, MISS PETRIE, FOR THOSE CLARIFYING QUESTIONS. MR. RAUL. WELCOME. >> OKAY. WE'RE ON THE OTHER PRESENTATION NOW, IS THAT CORRECT? MR. RILE. THANK YOU. BEFORE WE START WITH THE PRESENTATION, JUST TO GIVE YOU A LITTLE METHOD TO MY MADNESS. IN MY MIND, THE BUDGETS BASICALLY BROKEN UP INTO THREE SECTIONS. YOU HAVE YOUR REVENUE, YOU HAVE YOUR PAYROLL, AND YOU HAVE WHAT'S LEFT. JUST TO GIVE YOU A THOUGHT PROCESS AND THE WAY THE FLOW OF THE PRESENTATION IS GOING TO WORK, WE'RE GOING TO GO OVER SOME OF OUR ASSUMPTIONS THAT WE USED IN CALCULATING THE REVENUE BECAUSE, FIRST AND FOREMOST, YOU GOT TO KNOW HOW MUCH MONEY YOU HAVE TO SPEND BEFORE YOU CAN DECIDE ON WHAT YOU'RE DOING WITH PAYROLL AND WHATNOT, THEN WE'LL GO OVER SOME OF OUR ASSUMPTIONS AS THEY RELATE TO OUR EXPENDITURES, AND THEN WE'LL WRAP UP AND HAVE QUESTIONS. GREAT. MR. RILE, JUST FOR OUR FRIENDS THAT ARE LISTENING ONLINE, CAN YOU SPEAK A LITTLE CLOSER TO THE MIKE A LITTLE CLOSER? SURE. THANK YOU, SIR. I WAS AFRAID TO MOVE IT A WHILE AGO BECAUSE IT STARTED HUMMING AT ME. I WAS LIKE, DID IT LIKE IT OR SO. LOOKING AT OUR ASSUMPTIONS FOR REVENUE, BASICALLY WHAT YOU START OFF WITH ARE YOUR STUDENTS. HOW MANY STUDENTS ARE YOU GOING TO GET AS DR. WRIGHT WAS SAYING, WE'RE GOING TO GET FUNDED BASED ON STUDENTS. WE UTILIZE OUR DEMOGRAPHER REPORT, AND I THINK THE DEMOGRAPHER GAVE YOU ALL THEIR PROJECTIONS THIS PAST DECEMBER, MAYBE JANUARYISH TIME FRAME. BUT WHAT WE'RE LOOKING AT IS THE MODERATE GROWTH, LOOKING AT 24,619 STUDENTS, AND THAT'S ROUGHLY 1,100 STUDENTS MORE THAN WHAT WAS PROJECTED IN THE 2024 YEAR. THE THING I WANT TO POINT OUT IS YOUR REFINED ADA FOR STATE FUNDING IS 22352. WE'RE LOOKING AT IT ATTENDANCE PERCENTAGE OF 93%. EVEN THOUGH OUR ENROLLMENT IS 24,619, WE'RE NOT BEING FUNDED ON ALL 24,000 KIDS. THERE'S SOME THINGS THAT YOU HAVE TO BACK OUT. AS AN EXAMPLE, YOU BACK OUT HALF THE PRE-CASE STUDENTS. YOU DON'T GET FULLY FUNDED ON THOSE, YOU GET HALF DAY FUNDED. THEN YOU GET FUNDED, BASED ON WHEN THEY'RE ACTUALLY HERE AT SCHOOL. OUR ATTENDANCE PERCENTAGE IS WHAT WE'RE LOOKING AT IS 93%. THE PAST BEFORE THE PANDEMIC, THAT WAS UP AROUND 95. I THINK DOCTOR CORRECT ME IF I'M WRONG, I THINK WE ENDED THIS YEAR RIGHT AT 94 OR RIGHT ON THE DOORSTEP OF 94? IT WAS LIKE 93.9. THAT ALMOST 1% WOULD HAVE THE EQUIVALENT OF ABOUT $1,000,002 TO US. THE NEXT THING YOU HAVE TO DO WHEN YOU'RE TRYING TO CALCULATE YOUR REVENUE IS YOU HAVE TO LOOK AT YOUR PROPERTY VALUES. WE GOT OUR CERTIFIED ESTIMATES FROM OUR APPRAISAL DISTRICTS, AND OUR SCHOOL DISTRICT ACTUALLY LIES IN THREE COUNTIES, HAYES, CALDWELL AND TRAVIS. WE'RE LOOKING AT A TOTAL OF $19.7 BILLION IN TOTAL NET TAXABLE VALUE. THIS IS AN INCREASE OF ABOUT 10.38% OVER OUR CERTIFIED VALUES FROM THE PRIOR YEAR. KEEP IN MIND, THIS IS OUR CERTIFIED ESTIMATE, WE WON'T GET CERTIFIED VALUES UNTIL JULY 25 OF THIS YEAR. THE STATE VALUES WHICH ARE USED TO DETERMINE THE STATE SHARE OF FUNDING, WE'RE LOOKING AT ABOUT 19.5 BILLION, AND WE HAVE TO ESTIMATE THAT EVEN THOUGH WE DON'T GET THOSE ACTUAL AMOUNTS UNTIL JANUARY OF 2025. THAT'S A THING THAT CAME ABOUT WITH HOUSE BILL 3. [00:35:02] THE REASON THAT'S IMPORTANT, AND I'LL SHOW YOU HERE IN A GRAPH IN A LITTLE BIT IS IT'S CALLED A FUNDING LAG, BECAUSE WE USED TO GET PAID ON THE VALUES WHEN THEY CAME OUT AND WERE KNOWN. WE WOULD BE GETTING PAID ON VALUES THAT CAME OUT IN JANUARY OF 2024, WHICH WOULD BE LOWER THAN THE VALUES THAT WE'RE COLLECTING ON. I CAN SHOW YOU GRAPHICALLY HERE HOW THAT USED TO BENEFIT US, BUT THAT WAS A "SAVINGS" WHEN HOUSE BILL 3 WENT INTO EFFECT IN 2019. WHEN YOU LOOK AT OUR TAX RATE, ALL THIS INFORMATION IS GATHERED AND YOU HAVE TO PLUG IT IN AND YOU THROW IT INTO OUR TAX RATE. OUR TAX RATE RIGHT NOW IS $1.15. THAT'S ABOUT A 0.38 CENTS DECREASE SINCE 2019. OUR CURRENT M&O RATE AND OUR PROPOSED RATE HERE IS STILL 0.6692 CENTS. WELL, TEA IS GOING TO CALCULATE THAT FOR US. AS A SCHOOL BOARD, YOU DON'T EVEN GET TO SET YOUR RATE. YOU JUST APPROVE WHAT TEA TELLS ME TO GIVE TO YOU. EVEN THE INS RATE, YOU REALLY HAVE NO CONTROL OVER THAT BECAUSE THAT'S A CALCULATION OF THE TRUTH AND TAXATION NOTICE, AND SO YOU HAVE TO LEVY A RATE TO BE ABLE TO PAY THE DEBT THAT'S DUE FOR THAT PARTICULAR YEAR. WHAT WE'VE BEEN FORTUNATE BECAUSE WE'VE HAD INCREASE IN PROPERTY GROWTH, WE'RE ABLE TO DEFEASE OR PAY DEBT OFF EARLY. WE TRY TO KEEP OR MAINTAIN A LEVEL RATE SO THAT WE CAN HAVE GOOD DEBT MANAGEMENT ON OUR SIDE TO BE ABLE TO PAY THAT OFF AND GENERATE THE CAPACITY NEEDED, SO THAT MAX CAN SPEND A LOT MORE MONEY GOING FORWARD ON THE BOND SIDE. ON THIS NEXT SLIDE, THIS IS JUST A GRAPHICAL REPRESENTATION. OH, SORRY, MY BAD. I CAN'T CHEW GUM AND WALK AT THE SAME TIME EITHER. THIS SLIDE HERE, IT JUST GRAPHICALLY SHOWS OUR REVENUE SOURCES. THE VAST MAJORITY ARE AROUND 53% OF OUR REVENUE, CURRENTLY IS COMING FROM LOCAL PROPERTY TAXES. THE STATES GOING TO KICK IN THE VAST MAJORITY OF THE OTHER PART, WHICH IS AROUND 40, 42%. ADDED TOGETHER, 97% OF OUR REVENUE COMES FROM EITHER LOCAL TAXES OR STATE FOUNDATION. THERE'S ONLY ABOUT 3% THAT WE GET FROM OTHER SOURCES. THOSE OTHER SOURCES COULD BE INVESTMENT EARNINGS, IT CAN BE RENTAL ACTIVITY THAT GOES ON, GATE REVENUE FROM SOME OF OUR EXTRACURRICULAR ACTIVITIES, AND THEN WE GET A LITTLE BIT OF SOME FEDERAL INDIRECT COST COMING BACK ON OUR GRANTS, BUT BY AND LARGE, THE MAJORITY OF OUR REVENUE COMES FROM THE LOCAL PROPERTY TAXES AND STATE FOUNDATION PAYMENTS. ON THIS NEXT SLIDE, THIS IS JUST GRAPHICALLY SHOWING THE RELATIONSHIP BETWEEN STUDENT ENROLLMENT FOR THE PAST FIVE YEARS AND THE 2025 ESTIMATED YEAR IN RELATION TO REFINED ADA. AS YOU CAN SEE, LIKE I MENTIONED IN 2025, WE'RE ALMOST RIGHT AT 25,000 KIDDOS IN ENROLLMENT, BUT WE'RE ONLY AROUND 225 IN WHAT WE'RE ACTUALLY GETTING FUNDED. THAT'S JUST SOMETHING I WANT YOU TO BE ABLE TO KEEP IN THE BACK OF YOUR HEAD. THIS NEXT GRAPH SHOWS THE RELATIONSHIP BETWEEN OUR PROPERTY VALUES THAT WE GET FROM THE APPRAISAL DISTRICT AND THOSE THAT WE GET FROM THE STATE. THIS IS WHAT I WANTED TO SHOW YOU. IF YOU LOOK AT THE LAST BLUE BAR IN BUDGET YEAR 2025, THOSE ARE OUR COLLECTIONS ARE BASED ON THOSE APPRAISED VALUES. IN THE OLD WAY OF DOING THINGS, WE WOULD GET FUNDED ON THE RED BAR IN 2024. YOU CAN SEE THAT GAP, THE LOWER THAT AMOUNT IS, THE MORE THE STATE KICKS IN FOR US. NOW THAT WE HAVE TO ESTIMATE IT, IT'S PRETTY MUCH LEVEL, SO THEY CLOSED THAT GAP. [00:40:02] IT WAS CALLED A FUNDING GAP. ONE OF THE THINGS I WAS TELLING DR. WRIGHT, JUST TO GIVE YOU AN IDEA. BACK IN FEBRUARY, I DID A PLANNING ESTIMATE, GAVE THOSE NUMBERS TO DR. WRIGHT, AND EVERYTHING'S BASED ON AN ASSUMPTION. BACK THEN, IT WAS A TREND ANALYSIS. WE GUESS, WE THINK OUR PROPERTY VALUE IS GOING TO INCREASE 12%. EVERYTHING WAS BASED ON 12% AT THAT TIME. WELL, NOW WE GOT A CERTIFIED ESTIMATE AND IT'S REALLY AROUND 10.38. MY INITIAL ESTIMATION ON THE STATE VALUE WAS ABOUT 19.8 BILLION. WELL, NOW KEEPING IT IN LINE WITH OUR CERTIFIED ESTIMATE, IT'S AROUND 19.5. THAT $300 MILLION DECREASE HAD THE EFFECT OF ABOUT 1,000,006 TO US. I KNOW SOME OF THE BUDGET COMMITTEE SAW SOME NUMBERS THAT WERE BASED ON FEBRUARY DATA, BUT AS WE GET BETTER DATA AND WE GET BETTER NUMBERS, THEN YOU CAN SEE HOW SOME OF THESE ITEMS TRUE UP A LITTLE BIT. THIS LAST GRAPH HERE, FALLING IN LINE WITH OUR REVENUE ASSUMPTIONS SHOWS YOU WHAT OUR TAX RATE HAS DONE SINCE 2020. AS YOU CAN SEE, EVEN THIS YEAR, EVEN THOUGH IT'S PRELIMINARY, AND TEA WILL SET THAT RATE, SINCE WE'VE SEEN A 10% INCREASE, MORE THAN LIKELY WE'RE GOING TO SEE ANOTHER COMPRESSION. I WOULD SAY THAT $0.66 WILL PROBABLY BE CLOSER TO HIGH, 50S MAYBE LOW 60S, BUT IT WILL BE COMPRESSED AGAIN. >> IN SUMMARY, AS I STATED, OUR REVENUE COMES FROM TWO MAJOR SOURCES, AND IT ACCOUNTS FOR ABOUT 97%. OUR TOTAL TAX COLLECTIONS RIGHT NOW ARE ESTIMATED AT 124 MILLION, ROUGHLY 54%, AND OUR STATE REVENUE IS 85.8 MILLION OR 43%. THEN THE FUNDING LAG, THAT'S WHAT I HAD TALKED ABOUT WITH THE DIFFERENCE BETWEEN THE STATE VALUES AND THE LOCAL VALUES. HONESTLY, Y'ALL ARE ALL FAMILIAR WITH THE FIRST REPORT. I HAVE TO HAVE THIS OUT HERE JUST TO GET A CHECK MARK FOR THAT PARTICULAR ITEM. I'VE DONE MY DUE DILIGENCE ON THAT ONE. GOING INTO OUR BUDGET ASSUMPTIONS FOR EXPENDITURES. AGAIN, LIKE I SAID, REVENUE, PAYROLL, AND EVERYTHING ELSE. THAT'S HOW I KEEP IT SIMPLE. ON PAYROLL, OUR ASSUMPTIONS AT THIS TIME ARE A 1% COST OF LIVING ADJUSTMENT FOR TEACHERS, LIBRARIANS, NURSES, AND COUNSELORS. THAT'S ABOUT A $1.1 MILLION COST. WE'RE ALSO LOOKING AT DEALING WITH SOME COMPRESSION ISSUES IN OUR SALARY SCHEDULE IN THE UPCOMING YEAR AT A COST OF ABOUT 500,000. OUR INSURANCE, JUST LIKE EVERYTHING ELSE, INSURANCE IS GOING UP, AND IN ORDER TO MAINTAIN A NO COST OPTION FOR OUR DISTRICT EMPLOYEES, WE'RE LOOKING AT INCREASING THAT CONTRIBUTION BY $50 A MONTH TO $445 A MONTH, AND THAT'S ABOUT A $1.3 MILLION COST. NOW, NOT EVERY EMPLOYEE IN THE DISTRICT TAKES THE HEALTH INSURANCE. I THINK OUR PARTICIPATION PERCENT THIS PAST YEAR WAS AROUND LIKE A HIGH 60 RIGHT AT 70. BUT ON HERE, NOT KNOWING FROM ONE YEAR TO THE NEXT HOW OUR PARTICIPATION IS GOING TO LOOK, WHAT WE DID THIS NUMBER ON WAS AN 80% PARTICIPATION RATE. ONE OF THE THINGS THAT WE DID THIS YEAR, WE HAD A BUDGET COMMITTEE THAT WE I THOUGHT WAS REALLY GOOD, BEING ABLE TO RUN SOME OF THE NUMBERS BY AND GET SOME FEEDBACK. THESE ARE SOME OF THE RECOMMENDATIONS THAT CAME OUT OF THOSE BUDGET COMMITTEE MEETINGS. WHAT WE'RE LOOKING AT DOING IS REPURPOSING SOME OF THE INSTRUCTIONAL COACH POSITIONS AT AN ESTIMATED SAVINGS OF ABOUT 2.3 MILLION. ALSO LOOKING AT ADJUSTING SOME SECONDARY STAFFING RATIOS AT ABOUT A $1.2 MILLION SAVINGS, AND LOOKING AT SOME DISTRICT AND CAMPUS ADMINISTRATION REASSIGNMENTS TO THE TUNE OF ABOUT A MILLION TOO IN SAVINGS. >> HEY, RANDY, LET ME JUMP IN REALLY QUICK. >> OKAY. [00:45:01] >> FIRST OF ALL, I WANT TO THANK THE BOARD MEMBERS THAT SERVED ON THE BUDGET SUBCOMMITTEE. IT WAS A JOINT VENTURE WITH ADMINISTRATION AND THREE OF THE BOARD MEMBERS, AND IT WAS VERY PRODUCTIVE TO BE ABLE TO GET FEEDBACK AND THEN WORK THROUGH SOME THINGS. WHAT WE ALL AGREED UPON WAS THAT WE WERE PROUD THAT THIS WASN'T LIKE 2011 WHERE WE WERE GOING TO ACTUALLY HAVE TO CUT PEOPLE. WE MAY HAVE TO REPURPOSE, BUT AT THE END OF THE DAY, EVERYBODY THAT WANTS A JOB IS GOING TO BE ABLE TO HAVE A JOB. THAT'S THE PREMISE THAT WE STARTED FROM. THEN FROM THERE, WE STARTED LOOKING AT DIFFERENT THINGS, AND WE REALLY WANTED TO MAKE SURE THAT WE WERE ABLE TO MOVE OUR ZERO STEP FOR OUR TEACHERS, COUNSELORS, LIBRARIANS, AND NURSES, AND SO THAT'S WHY WE CAME UP WITH THE 1%, JUST TO KEEP THEM MOVING BECAUSE AS WE MENTIONED, OUR TEACHERS ARE THE LIFELINE IN THE DISTRICT, AND SO WE FELT LIKE WE REALLY NEEDED TO GIVE THEM SOMETHING. WE WERE FEELING REALLY GOOD ABOUT THINGS. AFTER THE FIRST BUDGET SUBCOMMITTEE MEETING, WE GET NOTICE FROM TRS THAT THE INSURANCE, THE ZERO COST WAS GOING TO GO UP $50 A MONTH. IN AREAS THAT WE THOUGHT WE WERE GOING TO SAVE, IMMEDIATELY, THE COST JUMPS UP TO 1.3 MILLION. THAT WAS SOMETHING THAT WAS UNEXPECTED. BUT WE'RE LOOKING AT THAT FOR THIS YEAR, BUT THEN WE'RE ALSO GOING TO PURSUE MAYBE FORMING A COOP AMONGST OTHER SCHOOL DISTRICTS TO DO A SELF FUNDED INSURANCE PROGRAM SO THAT WE CAN BUY THIS NUMBER DOWN AND GET THE POOL UP LARGE ENOUGH. RANDY AND I ARE TALKING TO OTHER SUPERINTENDENTS AND BUSINESS MANAGERS ABOUT THAT BECAUSE WE CAN'T CONTINUE TO RAISE AND HAVE A ZERO COST WHEN THE SERVICES THAT WE'RE RECEIVING ARE LESS AND LESS, BUT THE PREMIUMS ARE MORE AND MORE. JUST WANT YOU TO KNOW WE'RE GOING TO LOOK AT THAT AS WELL. THEN THERE ARE SOME THINGS THAT WE'RE WAITING FOR THE DUST TO SETTLE. WHEN YOU LOOK AT THE REPURPOSE OF INSTRUCTIONAL COACH POSITIONS, THE REASON THAT WE TARGETED THIS PARTICULAR POSITION, IT'S NOT BECAUSE WE DON'T NEED INSTRUCTIONAL COACHES AND IT'S NOT BECAUSE WE DON'T VALUE THEM. QUITE TO THE CONTRARY, WE REALLY VALUE THEM AND WE REALLY THINK THAT ONE OF THE REASONS WE GOT TO PLACE ACADEMICALLY THAT WE'RE IN. BUT WE ALSO KNEW IN VIEWING WHAT'S HAPPENING IN AUSTIN THE LAST THREE YEARS THAT THEY'RE NOT GIVING US ANY MORE MONEY. MADIVAL AND HER TEAM HAVE BEEN TRAINING PEOPLE ON PLCS, AND WE'VE BEEN EMPOWERING TEACHER LEADERS AND TRIED TO GET OUR ICS TO BACK OUT AND LET OUR TEACHERS LEAD PLCS. THEN YOU GUYS HAVE ALLOWED US TO RESTRUCTURE OUR PAY SCALE FOR TEACHERS SO THAT WE HIRE VETERAN TEACHERS. I DON'T KNOW IF YOU ALL REMEMBER, BUT AT OUR END OF THE YEAR NEW TEACHER CELEBRATION, WE ONLY HAD 90 BRAND NEW TEACHERS OUT OF 1,375. WE'RE REACHING THE TARGET THAT WE WANT TO REACH. ARE INSTRUCTIONAL COACHES VALUABLE AND ARE WE GOING TO MISS THEM? HECK, YEAH, WE ARE. WE DIDN'T WANT TO GET RID OF ANY POSITION, AND WE DIDN'T THINK THAT WE HAD ANY POSITIONS THAT WE COULD DO WITHOUT. BUT WHEN YOU ARE FORCED TO CUT YOUR BUDGET BECAUSE OF REVENUE SHORTFALLS, YOU'VE GOT TO DO SOMETHING. BECAUSE WE FEEL LIKE WE HAVE SUPPORT FOR OUR TEACHERS, WE HAVE A PLAN WHERE WE'RE GOING TO REPURPOSE ABOUT FIVE TO MAKE SURE THAT OUR NEW TEACHERS ARE TAKING CARE OF. WE'LL HAVE FIVE FTES FOR THAT, AND THEN WE'LL FIGURE OUT WAYS TO SUPPORT EVERYBODY ELSE ALONG THE WAY. THEN THE ADJUSTMENT OF SECONDARY STAFFING RATIOS, BY CHANGING THOSE NUMBERS, WE'LL BE ABLE TO SAVE SOME POSITIONS THROUGH ATTRITION. THEN THE LAST ONE, THE DISTRICT CAMPUS ADMINISTRATIVE REASSIGNMENTS JUST BY STAFFING CHANGES AND LOOKING AT OUR FORMULA AND HOW DIFFERENT CAMPUSES FLUCTUATE WITH GROWTH OR THEY DECLINE, SOME WOULD GIVE UP LIKE AN AP POSITION, OTHERS WILL GAIN SOME, AND THEN WE MADE A CONSCIOUS DECISION TO TAKE THE THIRD AP FROM EACH MIDDLE SCHOOL AWAY. THEN WE HAVE ABOUT 18 POSITIONS IDENTIFIED WITHIN C&I THAT WE ALSO ARE GOING TO BE REPURPOSING THAT AREN'T ON THIS LIST YET, BUT THOSE WILL BE FORTHCOMING. BUT WE NEEDED TO MAKE SURE THAT THE DUST SETTLES, AND THE REASON I DON'T HAVE THEM ON THE LIST IS BECAUSE WE'RE TRANSFERRING FROM MUNIS OVER TO FRONTLINE AND WE'RE TRYING TO CLEAN UP TO MAKE SURE THAT WE REMOVE ALL VACANT POSITIONS FROM ONE SO THAT WE HAVE CLEAN DATA IN THE OTHER ONE, AND SO I REALLY EXPECT FOR THAT NUMBER TO INCREASE AS WE MOVE FORWARD AS WELL. BUT I WANTED YOU TO KNOW WHERE WE STARTED FROM WITH THAT PARTICULAR MEETING, [00:50:01] AND WE WANTED TO MAKE SURE THAT WE TAKE CARE OF TIER 1 INSTRUCTION AND TAKE CARE OF TEACHERS IN THE CLASSROOM FIRST AND THEN TRY TO REMOVE ANYTHING FURTHER AWAY FROM THE CLASSROOM THAT WE COULD. THANKS, RANDY. >> DR. WRIGHT, THANK YOU. WE GOT QUITE A BIT THAT WE COVERED THERE, SO LET'S SEE IF YOU HAVE ANY QUESTIONS, LOOKING OVER TO MY LEFT. LOOKING RIGHT. MR. SEVERANCE. >> THANKS. >> QUICK QUESTION. OF THE $99 MILLION FOR THE STATE REVENUE SIDE, CAN YOU BREAK THAT DOWN? I ONLY ASK BECAUSE YOU HAD IN THE ORIGINAL THIS HAYS CONSOLIDATED INDEPENDENT SCHOOL DISTRICT GENERAL FUND PLANNING ESTIMATE THAT YOU BROUGHT A BAR BLOG. IT HAD YOUR FOUNDATION SCHOOL PROGRAM NUMBER AT 77 MILLION AND THAT'S IN THE $99 MILLION TOTAL. BUT THEN ON YOUR PRESENTATION, IT HAS IT AT 84 MILLION OR 85 MILLION. I'M CURIOUS IF THAT NUMBER HAS GONE UP, YOU'RE LOOKING FOR THE SAME AMOUNT OF MONEY? >> IF YOU ADD THE 77 MILLION AND THE 8.4 MILLION RIGHT ABOVE IT, THAT'S YOUR 85. >> THOSE TWO TOGETHER? >> YES, SIR. >> THANK YOU. I HAD IT SEPARATE BET, SO TO MAKE SURE WE WEREN'T LOOKING FOR AS MUCH HAD WERE ON THE SAME TRACK. >> YES, SIR. >> THEN MY NEXT QUESTION IT COMES TO LOCAL SOURCES GOING BACK IN HISTORY A LITTLE BIT FROM THE 24 ORIGINAL BUDGET, YOU HAD A 140 MILLION, AND THEN THE REVISED BUDGET CAME INTO 110 MILLION. WHY WOULD THAT GO DOWN? I'M JUST CURIOUS. >> BACK IN NOVEMBER, WE HAD THE ELECTION TO INCREASE THE HOMESTEAD EXEMPTION FROM 40,000 TO 100,000 AND SO THAT HAS THE EFFECT OF LOWERING YOUR LOCAL PROPERTY TAXES BECAUSE YOU'RE NOW DOING IT ON $60,000 PER HOME LESS, AND THEN THE STATE KICKS IN THE DIFFERENCE. >> PERFECT. I JUST WANT TO CLARIFY THAT, SO WE'RE NOT GOING TO EXPECT THAT SAME ISSUE FOR THIS YEAR BECAUSE UNLESS THEY'RE LIKE BE PASSING ANYTHING NEXT YEAR. >> THEY SHOULD NOT AND TO BE HONEST, I THINK I MIGHT GO JUMP OFF A BRIDGE IF THEY WERE GOING TO DO SOMETHING LIKE THAT BECAUSE OUR TAX BILLS DIDN'T GO OUT UNTIL DECEMBER 29, AND THAT WAS NOT A GOOD TIME TO TRY TO MAKE SURE EVERYTHING WAS IN LINE. >> OKAY. GREAT. AWESOME. THANK YOU. APPRECIATE IT. >> BUT BYRON, YOU DO BRING UP A GOOD POINT, THOUGH. I DON'T KNOW HOW LONG IT'S GOING TO BE SUSTAINABLE FOR THE STATE TO PAY THE HOLD HARMLESS AMOUNT FROM THAT 40,000 TO 100,000, THE 60,000 DIFFERENTIAL. THE MONEY THAT'S WHY I'M SAYING, I HOPE THEY DO SOMETHING FOR THE BASIC ALLOTMENT, BUT IF THEY'RE GOING TO KEEP THIS TRAIN ROLLING, THEY'RE GOING TO HAVE TO FIND FUNDING IN ORDER TO KEEP TAKING CARE OF AND BACK FILLING THAT $100,000 EXEMPTION, TOO, SO THAT'S SOMETHING TO TAKE NOTE OF. >> ANY OTHER QUESTIONS TO FROM MY RIGHT? MR. IBLE? >> I LOST MY SPACE. I GUESS I ASSUME BECAUSE OF THE CHANGE IN THE TAX BILLS GOING OUT LATE, WE HAD AN ISSUE WITH COLLECTING TAXES THIS PAST YEAR FOR A LOT OF HOMEOWNERS. I'M HOPING THAT WE DON'T LOOK TO EXPERIENCE THAT IN THE FUTURE. CAN YOU EXPLAIN THE COMPRESSION? BEING NEW, THAT'S SOMETHING NEW FOR ME. I KNOW YOU GUYS HAVE TALKED A LOT ABOUT THE SALARY COMPRESSION ISSUE THAT WE'VE HAD SOME OF OUR STAFF MEMBERS. I JUST CLARIFY THAT DEFINITION OF WHAT THAT MEANS. >> THAT GOES BACK TO HOUSE BILL 3 IN 2019, SO THAT WAS THE LAST BIGGEST OVERHAUL IN STATE FUNDING. A LOT OF THE SCUTTLE BUTT BACK THEN WAS THAT THE TAX RATE WAS TOO HIGH, AND FOR US, IT WAS $1.04. I THINK THAT WAS THE MAX RATE YOU COULD HAVE AT THAT TIME. EVEN PRIOR TO THAT, THE HIGHEST YOU COULD GO IN YOUR TAX RATE WAS $1.50 AND SO IN ORDER TO BUY DOWN THE RATE AT THE STATE LEVEL, PART OF HOUSE BILL 3, IT'S AS YOUR PROPERTY VALUES GREW THAT WAS GOING TO COMPRESS YOUR RATE OR DECREASE YOUR RATE IN ORDER TO TRY TO SHIFT THE BURDEN FROM THE TAXPAYER TO THE STATE. >> I'M TALKING ABOUT SCHEDULE COMPRESSION ADJUSTMENTS THAT WE HAVE UP THERE, THE 500,000. BUT I APPRECIATE THAT ALSO. >> THAT HAD TO DO WITH JUST OVER TIME IF YOU GIVE A RAISE ACROSS THE BOARD TO ALL CLASSES OF EMPLOYEES, [00:55:06] THEN EVERYBODY IS EQUAL. IF YOU START SEGREGATING OR PICKING OUT CERTAIN CLASSES OF EMPLOYEES AND YOU GIVE A RAISE HERE, BUT YOU DON'T GIVE A RAISE OVER HERE. WELL, THEN THEY GOT, AND THEN THEY DIDN'T. THIS PARTICULAR COMPRESSION, I BELIEVE, AND CHRISTINA AND DR [INAUDIBLE] JUMP IN AT ANY POINT, IF I'M MISSPEAKING, HAD TO DO WITH THE FACT THAT THE FLOOR WAS RAISED TO A CERTAIN LEVEL AND SO WHEN NEW FOLKS CAME IN, IF I CAME IN WITH FIVE YEARS OF EXPERIENCE, I WAS CALCULATED ON THE NEW SCALE. BUT YOU COULD HAVE HAD 10 YEARS OF EXPERIENCE AND YOU WERE MAKING BELOW 20, YOU JUST GOT MOVED TO 20. I MAY HAVE FIVE YEARS, AND NOW I'M AT 21 SO I'M MAKING MORE THAN YOU WITH LESS YEARS OF EXPERIENCE. THAT'S THIS COMPRESSION THAT WE'RE TALKING ABOUT AND SO HR IS PULLING VERIFICATION OF EMPLOYMENTS AND HAVING TO GO THROUGH SOME WORK TO TRY TO EVEN THAT OUT. THE 500,000 IS WHAT THE ESTIMATE WAS AT THIS POINT, NOT FULLY KNOWING WHERE EVERYBODY'S GOING TO FALL, BUT THAT'S THE ESTIMATE THAT WE'VE BEEN GIVEN TO AT LEAST PUT IN THE BUDGET FOR THE UPCOMING YEAR TO ADDRESS THAT. >> THANK YOU. >> MR. FLOTUS. >> FIRST. THANK YOU, RANDY, AND THANK YOU TO THE COMMITTEE, AND I KNOW THAT WE'RE NOT GETTING HIT AS HARD AS MANY OTHER DISTRICTS AROUND THE STATE AND WE'RE FORTUNATE ENOUGH NOT TO BE LOSING PEOPLE. I JUST HAD A COUPLE OF QUESTIONS ON AS FAR AS THE SUPPORT, AND JUST SUPPLEMENTING FIRST OF ALL THE INSTRUCTIONAL COACHES. I KNOW THAT WE'RE REPURPOSING SOME AND WE'VE HEARD MEMBERS OF THE COMMUNITY AND THE DISTRICT VOICE THEIR OPINIONS ON THAT. CAN YOU JUST BASICALLY REITERATE WHAT WE'RE DOING TO TRY TO SUPPLEMENT, LIKE ONGOING COACHING OF YOUNGER TEACHERS WHEN IT COMES TO CLASSROOM MANAGEMENT, DELIVERING INSTRUCTION BECAUSE WE KNOW INSTRUCTIONAL COACHES HAVE AN ESSENTIAL ROLE SOMETIMES IN HELPING THOSE YOUNGER TEACHERS, ESPECIALLY WITH THE GROWING CLASS SIZES THAT WE'RE EXPERIENCING IN OUR DISTRICT. CAN YOU JUST GO MORE INTO DEPTH WITH THAT WE'RE GOING TO DO THAT. >> ABSOLUTELY. ONE OF THE THINGS WE DECIDED TO DO WAS ALLOW INSTRUCTIONAL COACHES TO MAINTAIN THEIR 197 DAY WORK CALENDAR, SO THEY'LL HAVE FIVE DAYS BEFORE SCHOOL, FIVE DAYS AFTER SCHOOL OR HOWEVER, THE PRINCIPALS WANT TO USE THEM, AND WE TRIED OUR BEST TO ASSIGN THEM TO THE CAMPUS THAT THEY WERE ON SO THEY COULD CONTINUE TO PROVIDE IN THE EXTRA 10 DAYS OF PROFESSIONAL DEVELOPMENT AND COACHING FOR PEOPLE ON THEIR CAMPUS. THAT THEIR SALARIES WILL BE HELD HARMLESS, AND WE'LL BE ABLE TO UTILIZE THEIR SERVICES AND THEN FROM THIS GROUP OR FROM ANOTHER GROUP, WHATEVER MADILL DECIDES SHE WANTS TO DO. WE'RE GOING TO BASICALLY HAVE SOME SPECIALISTS THAT WILL BE ASSIGNED TO BRAND NEW TEACHERS OR TEACHERS THAT ARE IDENTIFIED AS IN NEED OF SUPPORT. THEN WE'LL SEND THOSE PEOPLE TO WORK INDIVIDUALLY WITH THOSE THAT PRINCIPALS HAVE IDENTIFIED AS REQUESTING ASSISTANCE AND THAT'S ONE WAY TO DO IT. THEN AT THE SECONDARY LEVELS, WE HOPE TO JUST UTILIZE PEOPLE IN CONTENT AREAS THAT ARE GOOD MENTOR TEACHERS AND THOSE THAT ARE THE HEADS OF DEPARTMENTS BECAUSE THEY'RE ALREADY GETTING STIPENDS FOR THAT, TO JUST COACH UP SOME OF THEIR COLLEAGUES WHERE THEY NEED TO. OBVIOUSLY, WE CAN JUMP IN AND SUPPORT IN A LOT OF DIFFERENT WAYS, BUT THAT'S JUST A HIGH LEVEL OVER. >> ABSOLUTELY. I THINK TRUSTEE RUNKEL BROUGHT THIS UP AT THE LAST MEETING WHERE YOU HAVE A GROWING STUDENT POPULATION. SOMETIMES, BEHAVIOR ISSUES COME UP AND CLASSROOM MANAGEMENT BECOMES A CHALLENGE FOR SOME YOUNGER TEACHERS, SO I APPRECIATE YOU ANSWERING THAT. ALSO, WITH PART OF THE BUDGET CALENDAR THAT WAS SHARED, THERE WERE SOME DISCUSSIONS ABOUT STAFFING EARLY ON. HAVE BEEN ONGOING THROUGHOUT THE SPRING AND PART OF THAT WAS JUST WILL AFFECT SOME PROGRAMS, OBVIOUSLY AT SOME SCHOOLS, BUT I THINK A LOT OF IT WAS DATA DRIVEN DECISIONS BASED ON ACHIEVING BETTER EDUCATIONAL OUTCOMES. SPECIFICALLY FINE ARTS AT ONE OF OUR ELEMENTARY CAMPUSES RIGHT HERE. CAN YOU JUST TALK ABOUT THE SUPPORT THAT'S GOING TO BE GIVEN TO THOSE KIDS THAT STILL WANT TO ACCESS THOSE ROBUST FINE ARTS PROGRAMS THAT WE HAVE WHILE WE'VE MADE SOME ADJUSTMENTS. >> ABSOLUTELY. WE'RE GOING TO BE WORKING, ESPECIALLY AT THE CAMPUS THAT YOU SPEAK OF, BECAUSE OF THEIR GROWING POPULATION, WE WERE ABLE TO GIVE THEM AN ADDITIONAL FTE SO THAT THEY COULD HAVE A ROTATING SPECIALS UNIT. THEY'LL GET TO KEEP PART OF THAT FINE ARTS FOCUS AS A RESULT OF THAT AND THEN BECAUSE WE KNOW THAT IT'S IMPORTANT TO THE COMMUNITY, WE'RE EXPLAINING THAT TO THE ADMINISTRATION THERE. I THINK THEY'RE MAKING PLANS TO BUILD IN THAT ROTATION A SEQUENCE SO THAT WE [01:00:06] CAN CONTINUE TO HAVE THE SUPPORT WE NEED FOR THEATER AND FOR THE OTHER THINGS THAT THEY'VE BEEN DOING. IT MIGHT NOT BE AS ROBUST, BUT I KNOW THEY'LL STILL BE INTRODUCED AND KIDS THAT GRAVITATE TOWARD THOSE TYPES OF PROGRAMS WILL STILL HAVE THAT OPPORTUNITY. >> THANK YOU. OF COURSE, I ASK ONLY BECAUSE A LOT OF KIDS IT'S 28%. I THINK AT THAT CAMPUS KIDS HAVE THE IAPS, AND THEY USE A LOT OF THESE FINE ARTS PROGRAMS AS OUTLETS TO BUILD THEIR MOTOR SKILLS, COMMUNICATION SKILLS. AS WELL AS DEALING WITH MENTAL HEALTH, AS YOU MENTIONED IN FINE ARTS, WITH DEPRESSION AND ANXIETY. BUT AT THE SAME TIME, I KNOW WE'VE HAD AN INCREASE IN FINE ARTS PARTICIPATION AMONG ELEMENTARY SCHOOL KIDS. I THINK AT 7.61% INCREASE, SO THAT'S GREAT GUT I APPRECIATE YOU ANSWERING THOSE QUESTIONS SIR. >> TEAM, I WANT TO TIME IN, AND I DON'T THINK WE CAN'T OVERSTATE THIS ENOUGH AND THIS BOARD HAS BEEN VERY EMPLOYEE FRIENDLY. DR WRIGHT, YOU HAVE COME IN AND GIVEN GREAT LEADERSHIP OVER YEARS THAT EVEN PREDATE MYSELF ON THE BOARD. I THINK I'M THE THIRD MOST SENIOR, I'M NOT THE OLDEST ON THE BOARD. >> AGAIN, JUST A YEAR-OVER-YEAR COST OF LIVING ADJUSTMENTS THAT THIS BOARD HAS EXPECTED, EVEN WHEN YOU CAME WITH HERE'S WHAT A 3% LOOKS LIKE AND THE BOARD IS LIKE, WHAT DOES 5% LOOK LIKE? WHAT DOES 7% LOOK LIKE? TO OUR FRIENDS THAT ARE LISTENING, ESPECIALLY THOSE THAT ARE TEACHERS OR EVEN THE ICS AND ANYBODY ELSE IS GETTING REASSIGNED, WE HAVE A BELIEF THAT WE ARE UNRIVALED WHEN IT COMES TO BEING EMPLOYEE FRIENDLY IN TERMS OF SALARY. WE STARTED OFF WE WERE LOWEST OR SECOND LOWEST IN THE REGION WHEN YOU COMPARE US TO OTHER DISTRICTS, AND WE'RE PROUD TO SAY NOW THAT SOMEBODY WHO'S BEEN HERE FOR FIVE YEARS TO YOUR POINT, DR. WRIGHT, THAT WE HAVE A VERY LOW ATTRITION RATE. WE HAVE PEOPLE THAT WANT TO WORK FOR HAYS CISD WE ARE DRAWING FROM OTHER DISTRICTS. KUDOS TO YOU, DR. WRIGHT. KUDOS TO THE BOARD THAT'S BEEN ON HERE FOR SEVERAL YEARS TO SEE JUST THOSE EMPLOYEE FRIENDLY POLICIES AND THOSE ADJUSTMENTS. I KNOW THAT THIS WAS TOUGH. WE'RE IN A POSITION WE'RE IN BECAUSE OF THE MONEY THAT'S BEING HELD HOSTAGE, LIKE YOU SAID AT THE STATE LEVEL, BUT THESE SEEM TO BE PRETTY VETTED. THANK YOU TO OUR FORMER PRESIDENT WILL MCMANUS FOR COMING UP WITH THE BUDGET COMMITTEE BECAUSE I THINK THIS HAS BEEN A VERY COLLABORATIVE EFFORT. A LOT WAS SAID ALREADY JUST IN THIS HALF SLIDE, BUT I WANTED TO BRING THOSE THINGS UP. I SEE MS. OROSCO RAISE HER HAND OVER THERE. MS. OROSCO. >> THANK YOU FOR THAT OVERVIEW, DR. WRIGHT. I THINK IT'S REALLY IMPORTANT TO LOOK AT THE HISTORICAL CONTEXT OF WHERE WE HAVE BEEN AND THE SHIFT IN MINDSET IN OUR DISTRICT. TALKING ABOUT THAT, 6% TURNOVER IS AMAZING TO HAVE SUCH A LOW TURNOVER WHEN BEFORE WE HAD CLOSE TO AN 18% TURNOVER. THAT REALLY IS CREDITED TO YOUR LEADERSHIP AND YOUR STAFF AND US WORKING COLLABORATIVELY TOGETHER TO MAKE SURE THAT WE DO GOOD THINGS FOR KIDS. I REALLY APPRECIATE THAT. JUST GIVEN AN OVERVIEW OF THE COMPENSATION AND WHAT IT LOOKS LIKE, BECAUSE OUR BOARD ALWAYS IS OF THE MINDSET, LET'S GET MORE, LET'S DO MORE. WHAT CAN WE DO? WE PUSHED IT TO 7% ONE YEAR, AND WE'RE ALL ABOUT THAT LIFE OF MAKING SURE TO TAKE CARE OF OUR EMPLOYEES. HOWEVER, WE KNOW WE ARE IN A TOUGH FINANCIAL SITUATION RIGHT NOW WITH THE REVENUE SHORTFALLS HITTING ACROSS THE STATE OF TEXAS AND PEOPLE LOSING THEIR JOBS. THROUGHOUT THE DISTRICT, WE HEAR OF LIBRARIANS BEING LOST, INTERVENTION IS BEING LOST, CLASSROOM TEACHERS BEING LOST, AND SO ON. I'M SO GLAD THAT THE TEAM WAS CREATIVE ENOUGH TO BE ABLE TO ADDRESS SOME OF THIS REVENUE SHORTFALL WITHOUT ELIMINATING ACTUAL FILLED POSITIONS. THAT SAYS A LOT. IS THERE MORE? IS THERE THINGS THAT WE CAN DO DIFFERENTLY? OF COURSE, WE CAN ALWAYS IMPROVE. BUT THAT SALARY SCHEDULE COMPRESSION ADJUSTMENTS IS HUGE FOR US. THIS IS SOMETHING THAT WE HAVE BEEN ASKING FOR FOR YEARS, AND I AM SO GLAD THAT THE BOARD HAD THE PHILOSOPHY IN COLLABORATION WITH ADMINISTRATION TO TAKE CARE OF THAT AND NOT WAIT ON THAT EVEN THOUGH WE WERE IN A FINANCIAL CRUNCH, BECAUSE WE SAID WE'VE BEEN PUTTING IT OFF FOR SEVERAL YEARS BECAUSE OF THE COST ASSOCIATED. I'M SO GLAD THAT WE ARE ALSO TAKING CARE OF THAT AS WELL. RANDY, THANK YOU FOR MAKING IT EASY TO UNDERSTAND. YOU MADE IT SUPER EASY TO UNDERSTAND AND TO FOLLOW ALONG AND UNDERSTANDING. IT'S COMPLICATED OUT THERE, BECAUSE PEOPLE ALWAYS SAY, WELL, YOUR PROPERTY VALUES ARE SO HIGH. [01:05:01] YOU HAVE SO MUCH MONEY WHEN IN REALITY WHEN ONE SIDE INCREASES, THE OTHER SIDE DECREASES. AS LOCAL PROPERTY TAXES INCREASES, THE STATE CONTRIBUTION DECREASES. PEOPLE TRY TO FIND THE LOOPHOLE. WELL, THEY CLOSE THAT LOOPHOLE, SO WE CANNOT SAY WHAT ARE WE GOING TO DO DIFFERENTLY SO WE CAN GET MORE STATE FUNDING? WELL, THE ONLY WAY TO GET THAT IS IF WE DO GET THIS ALLOTMENT CHANGE WHICH HOPEFULLY WE WILL ONCE AGAIN PRIORITIZE AS ONE OF OUR LEGISLATIVE PRIORITIES AND GO FORWARD AND ADVOCATE ACROSS THE STATE FOR IT. BUT THANK YOU SO MUCH FOR MAKING IT EASY TO FOLLOW, RANDY, AND THANKS FOR THAT OVERVIEW, DR. WRIGHT. THANK YOU. >> THANK YOU, MS. OROSCO. MR. ROB BEFORE YOU PROCEED, I WANT TO JUST MAKE SURE REMIND YOU WE HAVE A WONDERFUL EAP PROGRAM. DO NOT JUMP OFF OF A BRIDGE. WITH THAT SAID, PLEASE CONTINUE, SIR. >> I DON'T KNOW HOW TO RESPOND. GOING OFF INTO NOW OUR OPERATIONAL BUDGETS, ONE OF THE THINGS THAT WE TRY TO DO THIS YEAR IS, TRY TO MAKE IT A LITTLE SIMPLE. WE HAVE THREE AREAS IN OUR OPERATIONAL BUDGETS. OUR FIRST ONE IS OUR CAMPUS. WE HAVE OUR CAMPUS BUDGETS, AND THOSE CAMPUS BUDGETS ARE BASED ON PROJECTED STUDENT ENROLLMENT. NOW, THIS YEAR, WHEN WE WERE EARLY ON IN THE PROCESS, ONE OF THE THINGS THAT WE TALKED ABOUT WITH DR. WRIGHT WAS WE'RE PROBABLY GOING TO NEED TO KEEP OUR OPERATIONAL BUDGET LEVEL AS WE HAVE THIS PAST YEAR, BUT WE DID WANT TO INCREASE THE CAMPUS BUDGETS. OUR CAMPUS BUDGETS ARE ABOUT 12.14% OVER THE PRIOR YEAR. THERE AGAIN, IT'S BASED ON STUDENT ENROLLMENT AND ALLOCATIONS BASED ON THE NUMBER OF STUDENTS. NOW, WHAT WE'RE CALLING DISTRICT-WIDE OR FIXED COST BUDGETS, THOSE ARE ITEMS SUCH AS UTILITIES, OUR APPRAISAL COST, AUDIT LEGAL FEES, PROPERTY INSURANCE, COPIERS, THOSE ARE NOT REALLY ITEMS THAT WE HAVE MUCH CONTROL OVER. IF YOU'VE EVER DONE ANY COST ACCOUNTING, YOU HAVE SOME VARIABLE COSTS AND YOU HAVE FIXED COSTS. WELL, THESE ARE OUR FIXED COSTS. I'VE GOT TO PAY THE APPRAISAL DISTRICT AND I HAVE NO NEGOTIATION WITH THEM. WE'VE GOT UTILITIES. I DON'T REALLY HAVE ANY NEGOTIATION WITH THAT. WE CREATED AN ALLOCATION FOR OUR FIXED COSTS. THEN THERE'S THE THIRD PART, WHAT WE'RE CALLING OUR CENTRAL OFFICE OR DEPARTMENTAL BUDGETS. THAT'S EVERYTHING ELSE THAT'S LEFT OVER. EVERYBODY'S GOING TO GET A CERTAIN PERCENT OF THAT AMOUNT. WELL, OVERALL, COMPARED TO THE PRIOR YEAR, THE DEPARTMENTAL AND ADMIN CENTRAL OFFICE BUDGETS ARE DECREASING BY 6.84%. OUR CAMPUS BUDGETS ARE INCREASING BY 12%. OUR DISTRICT-WIDE, OUR FIXED COSTS ARE INCREASING BY 8%. IF EVERYTHING IS STAYING THE SAME, THEN THE LAST LEG DECREASES, MAINTAIN THAT OVERALL OPERATIONAL BUDGET AMOUNT. THE SILVER LINING IN THE CLOUDS HERE IS SOME OF THOSE ITEMS WE MAY BE ABLE TO SUBSIDIZE BY USING SOME BOND INTEREST. I'LL PICK ON MAX IN MAINTENANCE, FOR EXAMPLE. THERE'S CERTAIN THINGS IN MAINTENANCE THAT WE COULD MAYBE DO UNDER A BOND. THERE ARE CERTAIN THINGS IN TECHNOLOGY THAT WE COULD MAYBE DO WITH SOME BOND INTEREST. THOSE ARE THINGS THAT WE'LL BE WORKING ON THROUGHOUT THE YEAR TO TRY TO SHIFT SOME COSTS AROUND. >> RANDY, I WANTED TO JUMP INTO. OUR PHILOSOPHY FOR BUDGETING CHANGED THIS YEAR BECAUSE WE KNEW WE WERE GOING TO EXPERIENCE THE REVENUE SHORTFALL ONCE AGAIN. RANDY AND ALEX AND I MET AND WE TALKED ABOUT PHILOSOPHY. TYPICALLY, WE DO WHAT'S KNOWN AS ZERO-BASED BUDGETING WHERE WE MEET WITH EVERYBODY, WE ALLOW THEM TO SUBMIT AND TELL US WHAT THEY WANT. THIS YEAR WE TOOK THE APPROACH BECAUSE WE KNEW WE COULDN'T HONOR A LOT OF REQUESTS BECAUSE WE DIDN'T HAVE ANY EXTRA MONEY. WE LOOKED AT A FIVE YEAR ANNUAL SPEND, AND WE TOOK THAT AVERAGE, AND THEN WE MADE THE CONSCIOUS DECISION THAT IF ANYBODY'S GOING TO GET AN INCREASE, [01:10:04] IT NEEDS TO GO TO THE CAMPUS BUDGETS, AND EVERYONE ELSE NEEDS TO BE DECREASED BECAUSE THE CAMPUS BUDGET, THEY'RE GOING TO TAKE CARE OF OUR KIDS. WE TOOK THE FIVE YEAR AVERAGE, AND THEN WE ADDED 12% TO THE CAMPUS BUDGET, AND THEN WE TOOK THE FIVE YEAR AVERAGE AND WE DECREASED THE CENTRAL OFFICE DEPARTMENTAL BUDGETS BY ALMOST 7%. THEN WE'RE HOPEFUL, LIKE RANDY MENTIONED, THAT WE CAN USE SOME BOND INTEREST MONEY TO AUGMENT SOME OF THE LOSS AT THE DEPARTMENTAL BUDGETS BECAUSE FOR INSTANCE, IF FUEL GOES UP AND MAX HAS TO BUY MORE DIESEL OR WHATEVER, THEN WE'RE GOING TO NEED IT. MAYBE WE CAN PAY FOR SOMETHING ELSE AND THEN RECLASS HIS ONE BUDGET TO THE OTHER TO COVER AND MAKE ENDS MEET. BUT WE ALWAYS HAVE BEEN REALLY GOOD IN THIS DISTRICT SINCE I'VE BEEN HERE BECAUSE WE ALWAYS LIKE TO LISTEN TO EVERYBODY. TEAM'S GREAT ABOUT CREATING A BUTTON SO THAT WE HAVE BOND TALKS AND BUDGET TALKS AND ZONE TALKS, AND YOU NAME IT. THIS YEAR, WE MADE THE CONSCIOUS DECISION NOT TO DO THAT BECAUSE I DIDN'T WANT PEOPLE TO SUBMIT THINGS AND THEN US NOT BE ABLE TO DELIVER. MANY OF YOU CAME TO OUR CAMPUS SHOWCASES AND WE ALWAYS ASKED THEM, WHAT DO YOU NEED? WELL, WHEN WE DON'T HAVE ADDITIONAL REVENUE, IT'S HEARTBREAKING. I FEEL BAD FOR ASKING THEM EVERY YEAR, AND THEN I CAN'T DELIVER ON SOME OF THESE THINGS. BUT I WANT PEOPLE TO UNDERSTAND THAT THIS MAY BE A HICCUP OR A BUMP IN THE ROAD, BUT IT DOESN'T MEAN THAT WE'RE FORGETTING ABOUT ALL THOSE THINGS THAT HAVE BEEN IDENTIFIED. IT'S JUST WE CAN'T GIVE THEM TO YOU RIGHT NOW. WE MAY BE ABLE TO GIVE THEM TO YOU NEXT YEAR. ALL THAT WAS TAKEN INTO CONSIDERATION, BUT I REALLY APPRECIATED ALEX AND RANDY FOR CREATING THIS NEW TEMPLATE SO THAT WE COULD SEE OUR AVERAGE SPEND AND I KNOW IT SCARED SOME OF THE BUDGET MANAGERS TO DEATH BECAUSE I WAS GETTING EMAILS GOING, THERE'S NO WAY I CAN MAKE THIS, I CAN'T DO THIS. I'M LIKE, WE'RE GOING TO TRY TO DO IT. FIGURE OUT WAYS THAT YOU CAN MOVE MONEY, AND THEN IF YOU GET IN A BIND AND LET US KNOW. BUT THAT'S KIND OF WHERE WE STARTED FROM, AND I WANTED YOU TO UNDERSTAND THAT THERE WAS A METHOD TO OUR MADNESS. >> THIS SLIDE HERE TAKES EVERYTHING WE'VE TALKED ABOUT AND JUST PUTTING THE TOTAL NUMBERS TO IT. NOW, HISTORICALLY, WHEN I PRESENT THE BUDGET TO THE BOARD, IT'S BASED ON A FUND AND A FUNCTIONAL AMOUNT. THESE NUMBERS REPRESENT THOSE AMOUNTS. WE DON'T HAVE ALL OF THOSE PLACED IN THE PROPER CATEGORIES YET. THAT WILL HAPPEN OVER THE COURSE OF THE NEXT TWO WEEKS AS WE GET OUR BUDGET BOOK READY FOR ALL TO ULTIMATELY ADOPT ON THE 24TH, BUT BOTTOM LINE NUMBERS AND TOTAL NUMBERS ARE GOING TO BE THE SAME. UNLESS SOMETHING HAPPENS, LIKE THE LEGISLATURE GOES INTO THE SESSION TOMORROW AND PASSES $7,500 INCREASE, BUT I COULD ALSO WIN THE LOTTO TOO, I GUESS. BUT ANYWAY, WHAT YOU'RE LOOKING AT HERE IS TOTAL LOCAL REVENUE, STATE REVENUE, FEDERAL REVENUE. OUR TOTAL ESTIMATED REVENUES IS 232 MILLION. YOU'RE LOOKING AT OUR PAYROLL EXPENDITURES BEFORE TAKING INTO CONSIDERATION ANY BUDGET SUBCOMMITTEE ADMIN RECOMMENDATIONS, AND OUR OPERATIONAL EXPENSES, WHICH IS WHAT WE JUST TALKED ABOUT WITH OUR THREE CATEGORIES AS FAR AS THE CAMPUSES, THE DEPARTMENTAL TYPE BUDGET, AND THE FIXED COST TYPE BUDGETS. YOU'RE LOOKING AT 232 MILLION COMING IN, 238 MILLION GOING OUT, AND THE NET RESULT TO $6.2 MILLION DEFICIT. WE'RE STARTING WITH ESTIMATED FUND BALANCE FROM THE YEAR WE'RE ENDING OF ABOUT 30 MILLION. IF YOU APPLY A SIX MILLION DOLLAR DECREASE TO THAT, THEN YOU'RE LOOKING AT ABOUT A $24 MILLION ENDING FUND BALANCE FOR THE 25 YEAR. THE BOARD FUND BALANCE REQUIREMENT, WHICH IS 25% OF YOUR OPERATING BUDGET OR ROUGHLY THREE MONTHS OPERATING EXPENDITURES IS ABOUT $59.6 MILLION. WE'RE FALLING SHORT OF THAT BOARD REQUIREMENT. AS I SHOWED YOU THE REVENUE GRAPHICAL REPRESENTATION OF TOTAL REVENUE, HERE'S A GRAPHICAL REPRESENTATION OF ALL THE EXPENSES. WHAT'S TO ME, EYE-OPENING IS YOU'RE LOOKING AT ABOUT 87.3% VERSUS [01:15:06] 12.7% PAYROLL VERSUS NON-PAYROLL TYPE EXPENDITURES. THEN THIS IS A PICTURE, SO TO SPEAK, OF OUR BUDGET CALENDAR UPDATED THROUGH THE MONTH OF JUNE. WE WILL STILL RECEIVE OUR CERTIFIED VALUES, AS I WAS MENTIONING EARLIER ON JULY 25TH. BASED ON THOSE CERTIFIED VALUES, WE'LL HAVE TO REVISE OUR TRUTH AND TAXATION NOTICE. WE'LL UPDATE THE INFORMATION INTO TEA'S TAX RATE CALCULATION MODULE. THEN AT THE AUGUST BOARD MEETING, WE'LL ACCEPT THOSE CERTIFIED VALUES, APPROVE THE ORDINANCE FOR SETTING THE TAX RATE, AND PROBABLY ALSO HAVE A DEFIANCE RESOLUTION TO PAY OFF SOME DEBT EARLY. THAT ENDS MY PRESENTATION. DO YOU HAVE ANY QUESTIONS, COMMENTS, I'LL ATTEMPT TO ANSWER THEM. >> YES, SIR. THANK YOU, MR. RAU. WE WILL HAVE QUESTIONS. I WILL LOOK TO MY LEFT. MISS PETREA. >> THANK YOU, MR. RAU. THANK YOU, DR. WRIGHT. IT'S A REALLY GOOD START. LIKE YOU SAID EARLIER, THIS IS BETTER NEWS. IT'S NOT GREAT NEWS, BUT THE SIX MILLION DOLLAR DEFICIT. I FEEL LIKE WE WERE TALKING AT $16 MILLION AT ONE POINT, IS THAT CORRECT? THIS FEELS A LOT BETTER THAN THAT. BUT IN THE OLD DAYS, WE ALWAYS KNEW THAT THAT WE'D BE ALL RIGHT. WE'D BE ABLE TO PUT MONEY BACK IN, BUT NOW WE'RE REALLY NOT IN THAT POSITION. I THINK DR. WRIGHT, YOU'VE DONE A REALLY GOOD JOB OF LAYING OUT THE PAST, HOW WE GOT THERE. YOU'VE ALSO SUGARCOATED HOW BAD THIS COULD HAVE BEEN. I THINK YOU'VE SAID WE'RE NOT IN 2011, BUT WE'VE HEARD FROM PEOPLE IN THE COMMUNITY, AND I'M NOT SURE PEOPLE REALIZE HOW HARD THIS ADMINISTRATION WORKED TO MAKE SURE THAT EVERYONE HAD A JOB. I KNOW SOME PEOPLE DON'T LIKE TO HEAR THAT OR FEEL LIKE, WELL, THAT'S NOT GOOD ENOUGH. I ONLY WANT TO WORK AT MY CAMPUS OR I ONLY WANT TO WORK IN THIS JOB. I GET THAT FEELING. BUT AT THE SAME TIME, WE LOVE ALL OF OUR EMPLOYEES, AND WE WERE REALLY TRYING HARD TO MAKE SURE EVERYONE HAD A SOFT LANDING. MAYBE THIS CHANGES IN A COUPLE OF YEARS AND WE CAN BRING ALL OUR ICS BACK AND THEN SOME. BUT I JUST WANT TO RECOGNIZE THE WORK THAT THE ADMINISTRATION DID TO KEEP PUSHING AND KEEP LOOKING AT DIFFERENT AREAS, BECAUSE ON PAPERWORK IT DOES LOOK LIKE A LOT OF THE CHANGES WE'RE MAKING ARE CLOSE TO THE CLASSROOM. BUT THE REALITY IS, WE HAVEN'T GIVEN TECHNOLOGY WHAT THEY NEED. WE HAVEN'T GIVEN MAINTENANCE AND OPERATIONS AND TRANSPORTATION AND CUSTODIAL SERVICES, WHAT THEY NEED FOR YEARS SO THAT WE CAN KEEP SUPPORTING THE CLASSROOM. I FEEL LIKE WE'RE FINALLY IN A CORNER OF, LIKE, WHAT ELSE CAN WE CUT? THIS ISN'T WHERE WE WANT TO BE. BUT TO THE PEOPLE OUT THERE IN THE COMMUNITY THAT ARE LOOKING ON PAPER AND SAYING, WELL, THEY ONLY CUT AT THE CLASSROOM LEVEL, THAT'S NOT THE FULL STORY. I APPRECIATE THE GRAPH THAT WE SAW EARLIER WHERE IT SAYS, WHAT HAVE WE BEEN NEGLECTING ALL THESE YEARS, ESSENTIALLY, IN OTHER AREAS TO POUR INTO INSTRUCTIONAL SERVICES, WHICH IS STILL WHERE THE MAJORITY OF OUR FUNDS ARE GOING. I WAS GLAD TO SEE THAT. I JUST WANTED TO SAY THANK YOU. I ACTUALLY WANT DR. WRIGHT TO GO ON THE RECORD. WOULD YOU SAY ANYTHING DIFFERENT, OR WILL YOU, TO THOSE THAT SAY, WELL, YOU'RE ONLY CUTTING THINGS CLOSE TO THE CLASSROOM, HOW DO YOU RESPOND TO THAT? >> I THINK YOU JUST SAID IT WELL. THEY HAVEN'T BEEN ABLE TO SEE THE FULL PICTURE BECAUSE WE'VE CONSCIOUSLY NOT ADDED SINCE 2019, ALL THE POSITIONS THAT HAVE BEEN REQUESTED. I FEEL LIKE THE GUY THAT PERPETUALLY SAYS, NO, EVERY CABINET MEETING, [01:20:01] AND EVERYBODY BRINGS A NEW POSITION AND I LOOK AROUND THE TABLE, AND I SAY, NO, WE CAN'T DO IT BECAUSE WE NEED TO SPEND THE MONEY HERE. WE'VE BEEN DOING THAT FOR THE LAST FIVE YEARS AND LIKE I MENTIONED BEFORE, WE'VE INCREASED 5,000 STUDENTS, THE FIRST THING THAT I HEAR IS, HEY, WE NEED TO CUT ADMINISTRATION HERE. WELL, ACTUALLY, I COULD HAVE USED TWO MORE OF THESE POSITIONS, BUT WE HAVEN'T ADDED THEM. I'VE ACTUALLY INCREASED THE LOAD ON MANY INDIVIDUALS ACROSS THE DISTRICT, AND THEY'VE DONE SO CHEERFULLY AND THEY'VE DONE A REALLY GOOD JOB. BUT THEY'RE IN A POSITION WHERE THEY NEED HELP AS WELL AND I'M JUST THANKFUL THAT THEY'VE HUNG ON WITH THIS, TOO, BECAUSE CONTINUITY IS SO HUGE IN ORDER TO MAKE A DIFFERENCE. I WANT TO GIVE A SHOUT OUT TO ALL THE TEAM BECAUSE THEY HAVE FIGURED OUT WAYS TO RE PURPOSE AND TO RECREATE, AND TO MAKE THINGS BUDGET NEUTRAL. THEN TRAIN UP PEOPLE THAT WERE IN THEIR STAFF THAT MAY HAVE NOT HAD THE SKILL SET THREE YEARS AGO TO DO WHAT THEY NEEDED THEM TO DO, BUT THEY'VE TRAINED THEM, AND NOW THEY'RE DOING DIFFERENTIATED JOBS, AND THEY'VE HAD TO STEP UP, AND THEY'VE REALLY DONE WELL. THE OTHER PIECE IS, I THINK YOU MADE THIS POINT TOO, A LOT OF TIMES PEOPLE DON'T UNDERSTAND WHY THINGS DON'T HAPPEN FASTER. I KNOW WE'RE IN AN INSTANT GRATIFICATION WORLD, WHERE WE WANT EVERYTHING YESTERDAY. BUT WE ALSO WANT TO DO THINGS RIGHT. IF WE'RE GOING TO MAKE A CHANGE, I WANT THAT INDIVIDUAL TO BE SPOKEN TO FACE TO FACE. WE HAD TO GO AROUND TO ALL THE PEOPLE THAT WERE GOING TO BE IMPACTED. WE HAD TO SPEAK TO THEM, AND THEN WE HAD TO SEE WHAT POSITIONS WE'RE GOING TO BE VACANT AND WHERE WE COULD MOVE THEM TO TAKE CARE OF THEM AND THEN IT'S JUST LIKE YOU HAVE TO COMPLETE STEP 1 BEFORE YOU GO TO STEP 2 AND THEN STEP 3, THEN YOU DON'T WANT TO MAKE MISTAKES BECAUSE THESE ARE PEOPLE'S LIVES YOU'RE DEALING WITH. IT'S THEIR LIVELIHOODS, AND YOU WANT TO MAKE SURE THAT YOU TAKE CARE OF THEM THE BEST WAY THAT YOU CAN. IT MAY SEEM LIKE THAT WE CUT MORE TOWARD THE CLASSROOM AND WE DID. BUT WHEN YOU COMPARE THE NUMBER OF FTES THAT WE HAVE WITH TEACHERS, COUNSELORS, LIBRARIANS, NURSES, INTERVENTIONIST, BEHAVIOR THERAPIST. YOU NAME IT, SPECIAL ED PERSONNEL, WE HAVE CLOSE TO 1,600 OF THOSE, AND THEN YOU MAY ONLY HAVE 100 OF THE OTHERS. IF YOU'RE GOING TO GET TO ANY NUMERICAL VALUE, THEN IT'S ALL ABOUT THAT CAPACITY. WE HAVEN'T ADDED ANYTHING SINCE 2019, BUT WE'RE ALSO CUTTING ABOUT 18 POSITIONS FROM CURRICULUM AND INSTRUCTION AND SO IN THE LONG RUN, YOU CAN HEAD THAT UP AND THAT'S WHY WE REALLY WANTED TO SHOW THE PERCENTAGES BECAUSE THE ONLY WAY YOU'RE GOING TO BE ABLE TO CUT INTO A REVENUE SHORTFALL IS WHERE YOU HAVE THE CAPACITY, AND THOSE ARE WHERE THE NUMBERS ARE. BUT STILL, BECAUSE OF OUR PREPARATION, LIKE WITH ICS AND PLANNING WITH THE HIRING THE VETERAN TEACHERS AND ALSO THE PLC PROCESS. I THINK IS IT GOING TO BE AS GOOD AS HAVING ICS? ABSOLUTELY NOT BUT IT'S THE NEXT BEST THING. I HOPE I ANSWERED YOUR QUESTION. I FELT LIKE I TOOK THE LONG WAY AROUND, BUT WE HELD THE LINE SINCE 2019 ON ALL OTHER COSTS OTHER THAN THINGS THAT WE'RE GOING TO DIRECTLY SUPPORT THE CLASSROOM, AND WE EVEN ADDED SO MUCH AFTER THE PANDEMIC BECAUSE WE KNEW KIDS WERE GOING TO COME IN BEHIND AND THEY WERE GOING TO HAVE BEHAVIOR ISSUES, MENTAL HEALTH ISSUES, AND WE NEEDED INTERVENTION. WE ADDED ALL THAT IMMEDIATELY AND THAT WAS OUR FOCUS, SO WE DIDN'T HAVE MONEY TO ADD ANYTHING ELSE. WE JUST CONTINUED THAT TREND MOVING FORWARD WITH ALL THE REST OF THE DEPARTMENT. KUDOS TO ALL THESE CHIEFS BECAUSE THEY'RE THE ONES THAT HAVE REALLY BEEN INSTRUMENTAL IN DOING MORE WITH LESS. >> THANK YOU FOR GOING ON RECORD TO SAY THOSE THINGS, AND I'LL JUST WANT TO TELL THE PUBLIC, IF YOU JUST HAVE ONLY BEEN PAYING ATTENTION TO ACISD, I STRONGLY SUGGEST THAT YOU GO GOOGLE TEXAS SCHOOL DISTRICT BUDGET CUTS, AND YOU'LL FIND A MYRIAD OF ARTICLES. ONE HEADLINE IN FRONT OF ME SAYS NORTH TEXAS SCHOOL DISTRICTS FACE MILLIONS IN BUDGET CUTS, SCHOOL CLOSURES, AND LAYOFFS TO FEND OFF DEFICIT. WE'RE IN A LOT BETTER SHAPE THAN A LOT OF OTHER FOLKS IN THE STATE. AGAIN, APPLAUD YOU AND THANK YOU, MR. RALPH FOR THIS PRESENTATION. >> MR. FLOTUS. >> THANK YOU, RONA. I KNOW WE GET ADDITIONAL MONEY FOR LOW INCOME STUDENTS AND STUDENTS WITH SPECIAL NEEDS, CORRECT? [01:25:04] DO YOU KNOW THAT EXACT FIGURE, ANY? >> I DON'T. IT'S GOING TO BE BASED ON IT'S A WEIGHTED FUNDING. DEPENDING ON THE POPULATION OF THE STUDENT, IT'S WEIGHTED, BUT I CAN GIVE YOU THE WEIGHTS ON THAT AND IF YOU HAVE A SPECIFIC STUDENT GROUP IN MIND. >> THE QUESTION IS, HAVE WE BEEN PRETTY ACCURATE ABOUT IDENTIFYING THE STUDENTS WITH SPECIAL NEEDS AND THE STUDENTS SO WE'VE BEEN PRETTY GOOD ON THAT FRONT? >> YES. >> GREAT. ALSO, DOCTOR, YOU COVERED THIS. I MEAN, JUST HOW ARE ADOPTED GOALS AS A DISTRICT REFLECTED IN THIS BUDGET. I KNOW YOU'VE SUMMARIZED IT PERFECTLY, BUT COLLEGE CAREER MILITARY READINESS, AND THOSE ARE OUR GOALS, BUT HOW ARE THEY REFLECTED IN THIS VERY BUDGET THAT WE SEE? >> WE DIDN'T MAKE CUTS IN THE MAJORITY OF ALL THOSE AREAS, AND YOU CAN SEE IN THE PERCENT CHANGE IN FUNCTIONAL CAPACITY IN CATEGORIES FOR THE BUDGET, THOSE AREAS THAT WE TARGETED LIKE ADVISING AND IN MENTAL HEALTH. JUST IN TIER ONE INSTRUCTION, ALL THE INCREASES THAT YOU'LL SEE OVER FIVE YEARS HAVE BEEN SPECIFICALLY TARGETED FOR THOSE AREAS. >> I APPRECIATE IT. I JUST WANT TO ECHO WHAT VANESSA JUST MENTIONED. THERE'S A LOT OF DISTRICTS THAT ARE REALLY FEELING IT AND THAT THEIR FEDERAL FUNDS HAVE DRIED UP, AND THEY'VE HAD A LAYOFF TEACHERS AND OTHER POSITIONS. I THINK WE'RE IN A GREAT POSITION TO SHOW US HOW STRONG OUR DISTRICT IS AND HOW STABLE WE ARE. BUT I APPRECIATE YOU BRINGING UP THAT POINT AND IF YOU DO GOOGLE THOSE THINGS, YOU WILL SEE MUCH OF WHAT OTHER DISTRICTS ARE FACING, SO. BUT I APPRECIATE. THANK YOU. >> MS. OROSCO? >> ACTUALLY, YEARS BEFORE, WE WERE NOT CODING CORRECTLY BEFORE DR. WRIGHT, AND SO ON, WE WERE NOT CODING STUDENTS CORRECTLY, AND I KNOW THAT WAS CLEANED UP WITH OUR HR AND RANDY RAO THERE CLEANING UP THE CODING BECAUSE THERE IS WEIGHTED FUNDING. THAT WAS A HUGE OVERHAUL AND A VERY COMPLICATED SYSTEM, BUT HR AND OUR FINANCIAL FOLKS DID IT SO GREAT TO THEM BECAUSE WE WERE ABLE TO REALIZE SOME OF THAT FUNDING. THAT'S ONE THING FOR SURE. THE OTHER THING, YOU KNOW, DR. WRIGHT, I KNOW SINCE YOU GOT HERE, YOU HAVE BEEN VERY INTENTIONAL ABOUT THAT PERCEPTION OF BEING TOP HEAVY. I KNOW WHEN YOU CAME IN HERE, YOU REALLY CUT AND RESTRUCTURED THINGS, SO WE WOULD NOT BE SO TOP HEAVY AS WE WERE BEFORE. THAT WAS VERY INTENTIONAL, AND THAT REALLY DID HELP AND THANK YOU FOR BRINGING UP TO 2019 THAT YOU'VE BEEN HOLDING THE LINE IN POSITIONS BECAUSE THAT IS TRUE. THAT'S A GO TO FOR PEOPLE IN THE COMMUNITY THAT REALLY DON'T KNOW OUR DISTRICT, AND THAT JUST HERE MAYBE BITS AND PIECES. EVERYBODY SAYS, YOU TOP HEAVY CUT ADMINISTRATION AND SO ON. I LIKE FACTS, AND I KNOW THAT WE HAVE LIVED THROUGH IT. MANESA, HAS ALSO SERVED ON THE BOARD, JUST A YEAR LESS THAN ME, AND WE'VE BEEN THROUGH IT. IN 2011, WHEN I WAS A TEACHER IN THE DISTRICT, JEFF, WERE YOU A TEACHER IN 2011? WE WERE TEACHERS IN THE DISTRICT WHEN WE WERE HIT WITH 200 CUTS, AND ALL PROBATIONARY TEACHERS LOST THEIR POSITIONS, AND SO MANY TEACHERS, TECHNOLOGISTS, AND SUCH LOST THEIR POSITIONS. I WAS UNION PRESIDENT AT THAT TIME, AND I REMEMBER SCRAMBLING TRYING TO WORK WITH OUR OTHER FELLOW UNION LEADERS ON GETTING POSITIONS FOR OUR EMPLOYEES. THAT WAS A VERY DIFFICULT, SO MANY PEOPLE WERE IN TEARS, DIDN'T KNOW WHAT TO DO, DIDN'T KNOW WHERE THEY WERE GOING TO FIND A POSITION. THEY WERE SO PASSIONATE ABOUT BEING TEACHERS, BUT WE WERE LETTING THEM GO LEFT AND RIGHT. THAT WAS SO HARD. THAT'S PROBABLY ONE OF THE HARDEST THINGS THAT WE HAVE LIVED THROUGH OTHER THAN A PANDEMIC AS A TEACHER, SEEING THAT. PEOPLE ACTUALLY LOSING THEIR JOBS. YES, WE COULD DEFINITELY BE WORSE OFF FOR SURE, JUST SOUTH OF US, THEY'RE CONSOLIDATING SCHOOLS, CLOSING 19 SCHOOLS IN ONE DISTRICT. THERE IS SO MANY THINGS THAT COULD HAVE GONE WRONG. THANK YOU FOR YOUR DUE DILIGENCE ONCE AGAIN, I CAN'T SAY IT ENOUGH BECAUSE WE'VE SEEN THE DISTRICT IN 2011 AND WHAT HAS OCCURRED, AND WE'RE SEEING WHAT'S HAPPENING ACROSS THE STATE. THANK YOU AGAIN FOR LOOKING AND I KNOW PEOPLE WERE WONDERING, WHY IS THIS TAKING SO LONG? WHY AREN'T WE GETTING THE INFORMATION? YOU DID THE CONTRACT SO LATE AND SO ON, BUT DOING OUR DUE DILIGENCE, NOT ONLY THE EXECUTIVE LEADERSHIP HERE, BUT ALSO BRINGING IT BACK TO OUR BUDGET SUBCOMMITTEE AND SAYING, [01:30:01] WE HAVE TURNED OVER EVERY ROCK. WE HAVE LOOKED EVERYWHERE WE COULD TO MAKE SURE THAT WE DON'T HAVE THOSE CUTS, THAT WE DON'T HURT OUR EMPLOYEES BECAUSE WE ARE AN EMPLOYEE FRIENDLY DISTRICT. THANK YOU FOR DOING THAT AND YOUR DUE DILIGENCE. NOW, WHAT I WANT TO ASK YOU, RANDY, IS WE TALKED ABOUT OUR ESTIMATED ENDING FUND BALANCE BEING AT THE 24 MILLION MARK AND WE NEED TO BUILD THAT BACK UP. I KNOW WE'VE HAD THIS DISCUSSION SOMEWHAT ABOUT HOW ARE WE GOING TO BUILD THAT BACK UP TO GET BACK TO OUR 25%. DR. WRITER RANDY, CAN YOU TALK A LITTLE BIT ABOUT WHAT THE PLAN IS MOVING FORWARD TO BUILD OUR FUND BALANCE UP AGAIN? >> I THINK THE START IS TONIGHT, WE'RE LOOKING INITIALLY AT A $15 MILLION DEFICIT, SO WE'RE ABLE TO SHAVE THAT. >> I HATE TO USE THIS ANALOGY, BUT I'VE STRUGGLED WITH MY WEIGHT OVER MY LIFE, AND I'VE LOST WEIGHT AND I'VE GAINED WEIGHT. I'LL TELL YOU, IT CAN TAKE A YEAR TO LOSE 50 POUNDS, WHICH I'VE DONE. BUT IF I GO TO A COUPLE OF ALL-YOU-CAN-EAT BUFFETS, I CAN PUT IT BACK ON REALLY QUICK. I USE THAT ANALOGY BECAUSE WE CAN BLOW THROUGH THE FUND BALANCE REALLY QUICK, BUT IT'S GOING TO TAKE SOME TIME AND A PLAN TO GET IT BACK UP AND YOU'RE NOT GOING TO GET IT DONE OVERNIGHT, IT'S GOING TO TAKE SOME OF WHAT WE'RE DOING NOW. TO ME, THE MAIN THING IS THE CLOSER WE CAN GET TO ZERO BALANCE BUDGET, THAT WILL HELP. I HOPE THE PRESENTATION TONIGHT, IF NOTHING ELSE SHOWED THAT. I'VE USED THIS IN CABINET TODAY, BUT THIS IS NOT LIKE AN ALGEBRA EQUATION WHERE YOU CAN SAY, OKAY, THE RESULT IS THREE. TOMORROW, IT'S GOING TO BE THREE, ONE WEEK FROM NOW, IT'S GOING TO BE THREE. STATE FUNDING AND THESE THINGS, THERE ARE SO MANY VARIABLES. TONIGHT IT'S THREE, TOMORROW IT MAY BE TWO, ONE MONTH FROM NOW IT MAY BE ONE, THEN IT MAY BE FIVE. AS YOU CAN SEE, WE'LL GET CERTIFIED VALUES AT THE END OF JULY, WE'LL SET THE TAX RATE IN AUGUST. WHAT'S OUR ATTRITION RATE LOOK LIKE? HOW MANY BUS DRIVERS ARE WE GOING TO BE ABLE TO HIRE? THERE'S SO MANY MOVING PARTS TO THIS, AND SO TO ME, THE CLOSER YOU CAN GET TO ZERO ON A BALANCED BUDGET, THE BETTER YOU'RE GOING TO BE ABLE TO MANAGE THAT. I THINK ONCE WE START BUILDING THE FUND BALANCE UP, THEN IT STEAMROLL. I KNOW THAT THE DISTRICT I WAS IN BEFORE I CAME TO HAYS, WHEN I STARTED THERE, OUR FUND BALANCE WAS $200,000. NOW, COMPARABLE THAT WOULD PROBABLY BE ABOUT TWO MILLION TO US. WE GOT IT BUILT UP TO WHERE WE HAD ABOUT FIVE MONTHS WORTH OF OPERATING EXPENDITURES, BUT IT TOOK ABOUT SIX YEARS TO DO IT. IT'S A MINDSET. WE HAVE LIMITED A COST ON OUR M&O SIDE, WE HAVE MORE CAPACITY ON THE INS SIDE. IT'S SHIFTING SOME OF THOSE OPERATIONAL EXPENSES THAT WE'VE HISTORICALLY PAID OUT OF M&O, PUT THEM INTO INS. WE'RE LOOKING AT POSSIBLY SHIFTING COPIERS OVER. AS YOU SAW, THAT WAS A FIXED COST, SO I SHIFT THAT OVER, AND IN FIVE YEARS, THAT WOULD BE ABOUT A MILLION AND FIVE BUCK TO OUR FUND BALANCE. AT MY OLD DISTRICT, WE PURCHASED ALL OF OUR TECHNOLOGY OUT OF BONDS. WE DIDN'T EVEN HAVE OUR CYCLE ANYMORE WITHIN THE M&O, IT WAS ALL BOND, SO ALSO MANAGING YOUR DEBT. I MENTIONED EARLIER, WE'RE LOOKING AT DOING A DEFEASANCE ISSUE ON AUGUST. WELL, TENTATIVELY, THE CALCULATION ON THAT IT LOOKS LIKE IT COULD BE CLOSE TO $18 MILLION AND PAYING SOME DEBT OFF EARLY. THERE AGAIN, IT'S BASED OFF OUR CERTIFIED ESTIMATE AT THIS TIME. BUT IF I'M ABLE TO PAY $18 MILLION OFF EARLY, I'VE MORE THAN PAID FOR NEW DESKTOPS FOR EVERY CLASSROOM IN THE DISTRICT, IF I PAID FOR THEM THROUGH A BOND. I THINK THE FORTUNATE THING, WHEN I TALKED TO DR. WRIGHT ABOUT IT, WE WERE BOTH AT DISTRICTS WHERE WE HAD TO LOOK AT, [01:35:04] WE WERE "PROPERTY RICH", WHICH MEANS WE WERE POOR, SO WE HAD TO CUT AND WE HAD TO SHIFT COST. I WAS USED TO DOING IT, I KNOW HE'S USED TO DOING IT. IT JUST TAKES EVERYBODY SITTING AROUND THESE TABLES, WHETHER THAT BE THE BOARD, THE CHIEFS, EVERYBODY JUST BEING ON THE SAME PAGE. >> JUST A COUPLE OF THINGS TO ANSWER ESPERAN'S QUESTION. WHEN WE STARTED WITH THE BUDGET SUBCOMMITTEE, WE HAD A $15 MILLION DEFICIT THAT WE IDENTIFIED AND WE WANTED TO AT LEAST CUT IT IN HALF. OUR GOAL WAS 7.5, AND WE'VE CUT ALMOST 10. THAT'S A GREAT FIRST STEP, BUT WE'VE GOT TO GET IT BACK TO ZERO, AND THE WAY YOU DO THAT IS YOU IDENTIFY YOUR REVENUE AND YOU JUST MAKE SURE YOUR EXPENDITURES DON'T EXCEED YOUR REVENUE. IT'S A REAL SIMPLE CONCEPT, BUT IT'S REAL HARD TO DO WHEN YOU HAVE LOTS OF ASKS. BUT THE OTHER THING, I'VE HAD SEVERAL PEOPLE ASK, WELL, WHY DON'T YOU JUST GO FOR A TAX RATIFICATION ELECTION AND INCREASE THE TAX RATE? WELL, THE PROBLEM WITH THAT IS WE'RE RIGHT ON THE LINE OF BEING A CHAPTER 49 OR A PROPERTY WEALTHY DISTRICT. IF WE WERE TO GO OUT FOR A TAX RATIFICATION ELECTION, THAT RAISES THE TAX RATE, WHICH ISN'T WHAT OUR CONSTITUENTS WANT ANYWAY; WE WANT TO KEEP DECREASING IT, AND WE'RE GOING TO BE ABLE TO DO SO AGAIN THIS YEAR. BUT IF WE DID THAT, THEN WE WOULD END UP SENDING MORE MONEY BACK TO THE STATE THAN WE WOULD GET TO KEEP, AND IT WOULDN'T JUSTIFY THE DIFFERENCE. I WANTED TO ANSWER THAT QUESTION BECAUSE A LOT OF PEOPLE HAVE ASKED ME, HEY, HAVE YOU CONSIDERED DOING THIS? WELL, YEAH, WE'VE CONSIDERED IT, BUT WE DON'T THINK THAT IT WOULD BE BENEFICIAL TO US. I WANTED TO GET THAT OUT THERE, AND WE REALLY DO BELIEVE THAT ONCE AGAIN, ONCE THE STATE CALCULATES OUR TAX RATE, WE'LL HAVE ANOTHER DECREASE OVERALL, WHICH IS GREAT FOR ALL OF US AS TAXPAYERS, AND SO THAT'S A GOOD THING. BUT WE MADE A HUGE DENT IN THIS MORE THAN I THOUGHT WE WERE GOING TO BE ABLE TO WITHOUT HAVING TO LAY OFF PEOPLE, CUT PEOPLE'S JOBS, AND SO I'M THANKFUL FOR THAT MOVING FORWARD, BUT WE DO NEED TO START BUILDING IT BACK UP AND GETTING IT TO THE 25% THRESHOLD. >> FOR THE RECORD, IT WAS AT THE WILL OF THE BOARD TO SPEND THAT DOWN. THAT WAS A VERY INTENTIONAL DECISION THAT THE BOARD IN COLLABORATION WITH THE ADMINISTRATION DID IN ORDER TO TAKE CARE OF OUR PEOPLE UP FRONT. WE HAD TO FRONT-LOAD THAT, SO THAT WAS VERY INTENTIONAL TO DO. I JUST WANT TO MAKE SURE TO GO ON THE RECORD SAYING THAT WAS A JOINT EFFORT TO DO THAT, BUT I KNOW WE'LL WORK TOGETHER TO MAKE SURE TO BUILD THAT BACK UP, AND ONCE IT'S SUPER HEALTHY AND GREAT, WE CAN START SPENDING IT DOWN, BECAUSE YOU GET PENALIZED IF YOU HAVE TOO MUCH. THE STATE WILL PENALIZE YOU IF YOU HAVE TOO MUCH IN FUND BALANCE, THEY WILL PENALIZE YOU IF YOU DON'T HAVE ENOUGH IN FUND BALANCE. SO WE'LL GET PENALIZED, SO WE NEED TO MAKE SURE TO USE IT FOR GOOD WHEN IT IS BOUNTIFUL, RIGHT, RANDY? THANK YOU. >> THE BUFFET TALK, THAT'S A DIFFERENT TYPE OF TOP HEAVY. MR. SEIBEL. >> FIRST, I JUST WANTED TO POINT OUT BECAUSE YOU ALLUDED TO THIS EARLIER, THIS GRATITUDE TOWARDS ALL OF OUR DEPARTMENTS BECAUSE WE HAVE FOCUSED ON THE CLASSROOM INSTRUCTION SIDE OF THE TABLE, AND THAT'S BEEN GREAT, BUT WE HAVE A LOT OF EMPLOYEES THAT HAVE OBVIOUSLY SUFFERED BECAUSE THEY'VE BEEN WILLING TO DO MORE WITH LESS IN ORDER FOR US TO BE ABLE TO FOCUS ON STUDENTS, AND SO I JUST WANT TO PUT THAT OUT THERE, AND THANK YOU TO EVERY DEPARTMENT THAT'S NOT DIRECTLY IN THE CLASSROOM WITH STUDENTS THAT THEY'RE WILLING TO DO THAT FOR US BECAUSE THAT'S WHY WE'RE ABLE TO DO THAT FOR OUR STUDENTS, BECAUSE THEY'RE WILLING TO DO THEIR PART IN THIS, SO I JUST WANT TO MAKE SURE THAT THAT IS STATED OUT THERE TOO. I LOVE THIS PHRASE THAT WE ARE ABLE TO MAKE SURE EVERYBODY STILL DOES HAVE A JOB IN THE DISTRICT, BUT I ALSO DON'T WANT TO MINIMIZE THE FACT THAT WE DO UNDERSTAND THAT TEACHING IS A TOTALLY DIFFERENT PROFESSION THAN ANYTHING ELSE OUT THERE IN THE WORLD, AND MAN, THESE CAMPUSES ARE FAMILY, AND SO IT'S HARD WHEN WE MOVE STAFF TO OTHER CAMPUSES THAT THEY'RE LEAVING THEIR FAMILY, THEY FEEL LIKE. WE UNDERSTAND THAT. IT'S NOT JUST AS SIMPLE AS WE'RE MOVING PEOPLE FROM ANOTHER PLACE AND YOU GET A JOB, SO BE HAPPY, IT'S NOT THAT SIMPLE, AND WE UNDERSTAND THAT IT'S NOT THAT SIMPLE, AND SO I JUST WANT TO MAKE SURE THAT THAT FACT ISN'T MINIMIZED BY US JUST SAYING THAT THEY HAVE A JOB BECAUSE WE KNOW THAT IT'S NOT JUST THE JOB, THAT PEOPLE ARE DOING THIS PROFESSION BECAUSE THEY ARE PASSIONATE ABOUT KIDS, [01:40:02] AND ARE PASSIONATE ABOUT OUR COMMUNITY, AND IT'S JUST NOT AS SIMPLE AS JUST HAVING A JOB, AND SO SORRY. >> I HAVE A LOT IN HERE BECAUSE OBVIOUSLY, BUDGETS ARE GREAT, AND I LOVE GOING THROUGH NUMBERS AND ALL THIS, AND SO I'M GOING TO REGROUP. WHEN WE LOOK AT THIS, WHAT I'M USED TO SEEING WITH BUDGETS AND PLANNING IS WE HAVE A BUDGET THAT'S GREAT. WE HAVE ALL THESE LINE ITEMS IN HERE. DO WE HAVE ANYTHING AS FAR AS WHAT OUR ACTUAL EXPENSES WERE, ACTUAL REVENUES AND EXPENSES WERE COMPARED TO BUDGET, AND HOW WE COMPARE THAT? I KNOW YOU DO HAVE THAT AND SO I'M ASSUMING YOU DO AND HOW THAT REALLY WORKS. I'LL LET YOU ANSWER THAT FIRST. >> [NOISE] EXCUSE ME. EVERY MONTH, I PRESENT OUR BOARD FINANCIALS, AND YOU CAN SEE, ON A MONTH TO MONTH BASIS, HOW WE STAND COMPARED TO OUR BUDGET, AND I LIST THE ORIGINAL BUDGET, REVISED BUDGET, AND THEN OUR ACTUALS. I'D BE MORE THAN HAPPY OFFLINE, MAKE AN APPOINTMENT, SIT DOWN WITH YOU AND GO OVER THOSE BECAUSE ONE OF THE THINGS THAT YOU HAD BROUGHT UP EARLIER WAS OUR COLLECTION PERCENTAGES. IF YOU LOOK AT THOSE FINANCIAL REPORTS, I ALSO HAVE ON THERE OUR TAX COLLECTION PERCENTAGE THIS YEAR COMPARED TO LAST YEAR, AND WE WERE SO FAR BEHIND IN THE MONTH OF DECEMBER LAST YEAR, FOR EXAMPLE, I THINK I HAD ALREADY COLLECTED 50% OF MY LEVY. THIS DECEMBER, I COLLECTED 1%, IT WAS SOME UNGODLY LOW AMOUNT. YES, THAT'S PART OF REPORTING BACK TO THE BOARD. WE DO HAVE OUR BUDGET, AND THEN EVERY MONTH, I DO THOSE FINANCIAL REPORTS TO BE ABLE TO SHOW WHERE WE STAND. >> GREAT. DO WE HAVE A BOARD POLICY AS FAR AS WHEN WE SEE VARIANCES GREATER THAN, SAY, WE HAVE A VARIANCE OF GREATER THAN 10% ON A CERTAIN LINE ITEM THAT WE GO INTO AND EXPLANATION AS TO WHY WE HAVE THAT VARIANCE AND JUST EXPLAINING THAT, OR IS THERE A POLICY IN THAT OR IS THAT JUST MORE OF EXPLAIN. HERE IT IS. >> THERE'S NOT A POLICY ON IT, BUT I HAVE DONE THAT IN A PREVIOUS DISTRICT. IT'S YOU KIND OF CATER IT TO YOUR AUDIENCE. THE ONE THING I HAVE DONE WITH MY FINANCIALS SINCE I'VE BEEN HERE IS I PRESENT A FINANCIAL HIGHLIGHT. I TRACK IF WE'RE THREE MONTHS INTO THE YEAR, THAT'S 25% OF THE YEAR, THAT'S UP. HOW DOES THAT COMPARE? WE'VE COLLECTED X PERCENT OF OUR REVENUE BY THEN OR WE'VE SPENT X PERCENT BY THEN. ONE OF THE THINGS I REMEMBER TELLING DR. WRIGHT FEW WEEKS BACK IS WE WERE REALLY TO THE POINT WHERE MY BUDGET WAS WITHIN THE YEAR, LET'S SAY I WAS AT 50%, WELL, I MAY HAVE SPENT 49.5% OF MY BUDGET, WHEREAS THE YEAR PASSED, I WAS MAYBE 3% UNDER. THIS YEAR THAT WE'RE IN, WE'RE TIGHT, BUT THAT'S HOW I TRY TO TRACK SOME OF THOSE VARIANCES. BUT I'M OPEN TO ADDING ANYTHING. THAT'S ONE OF THE THINGS I'VE ALWAYS SAID IS, PLEASE GIVE ME SOME FEEDBACK BECAUSE YOU DON'T ASK ME ANY QUESTIONS OR YOU GIVE ME ANY FEEDBACK. I'M ASSUMING YOU'RE GOOD WITH WHAT I'M HANDING TO YOU. >> GREAT. [LAUGHTER] GET READY. NO, I THINK OVERALL, FOR US, OUR DUTY AS A BOARD IS OBVIOUSLY OVERSEE THE BUDGET, MAKING SURE THAT WE'RE FISCALLY SOUND WITH OUR DECISION-MAKING PROCESS, AND MORE IN ESSENCE, THE PROCESSES THAT WE'RE FOLLOWING ARE SOUND. WE'RE NOT HERE TO GET INTO THE NITTY-GRITTY DETAILS ON EVERY SINGLE LINE ITEM. THAT'S Y'ALL'S JOB TO FIGURE OUT ALL THE DETAILS. BUT AT THE SAME TIME, PART OF OUR MONITORING PROCESS TO ME IS JUST UNDERSTANDING, WHAT ARE OUR RISK CONTROLS AND MONITORING IN TOLERANCES AND THINGS LIKE THAT, AND SO WHEN WE HAVE THINGS, YOU BROUGHT UP, FUELING IS AN EASY ONE JUST BECAUSE EVERYONE UNDERSTANDS THE VARIABLE COSTS AND FUELING. WE HAVE A BUDGET LINE ITEM SET FOR THAT, AND THEN WHEN FUELING GETS BEYOND, WE SEE THAT SOMETHING'S HAPPENED AND SO FUEL COSTS ARE GOING TO INCREASE BEYOND OUR SCOPE AND OUR BUDGET. NOW, WHEN IS THAT RISK TOLERANCE BREACHED, AND THEREFORE, WE HAVE TO HAVE AN ACTION ITEM TO SHIFT FUNDS FROM ANOTHER ALLOCATION INTO THAT LOCATION? FOR ME, JUST AS A OVERSIGHT, [01:45:02] JUST HAVING THOSE KIND OF RISK CONTROLS AND JUST UNDERSTANDING, THESE ARE WHERE OUR PAIN POINTS MIGHT BE, OUR FIXED COSTS ARE EASY, THEY'RE FIXED, VARIABLE COSTS ARE OBVIOUSLY THE ONES THAT WE HAVE POTENTIAL TO HAVE RUNOVER. JUST MAKING SURE THAT WE HAVE THOSE RISKS IN PLACE AND MONITORING. AGAIN, THAT'S JUST MY PERSPECTIVE ON JUST MONITORING RISKS AND MAKING SURE THAT WE HAVE THAT IN PLACE AND WE'RE ON TOP OF IT AND UNDERSTANDING OUR BUDGETS ARE FALLING IN LINE WITH WHERE WE HAD SET THE BEGINNING OF THE YEAR. I THINK THAT'S REALLY ALL I HAVE. >> THANK YOU, MR. SEIBEL. I HAVE JUST A COUPLE OF QUICK COMMENTS AND THEN A QUESTION OR TWO AS WELL. FOR THOSE OF YOU LISTENING ONLINE ESPECIALLY, WE'VE TALKED ABOUT OTHER DISTRICTS. ONE OF OUR FRIENDS TO THE NORTH, $30 MILLION IS WHAT THEY'RE LOOKING FOR NOW TO CUT EVEN MORE. WE'RE NOT BRINGING THOSE THINGS UP TO POKE FUN AT ANY OTHER DISTRICT. I THINK WE WANT TO JUST SHOWCASE THAT PUBLIC EDUCATION IS SUFFERING. THE FINANCES THAT WE ARE ALL UNDER, PUBLIC EDUCATION AS A WHOLE, IN TEXAS, DR. WRIGHT, WOULD JUST SAY NUMBER 42, TEXAS IS NUMBER 1 IN OUR HEARTS, BUT NUMBER 42 IN TERMS OF FUNDING. WE'VE GOT TO KEEP THE PICTURE, THE MAIN THINGS THE MAIN THINGS. OUR MAIN THINGS ARE THAT WE WANT TO EDUCATE STUDENTS. WE WANT TO VALUE OUR STAFF IN THE CLASSROOM AND ALL THE OTHER LEVELS IN ADMINISTRATION. I KNOW THAT WE'VE SHOWN THAT. YOU HEARD TONIGHT, AGAIN, WE ESTIMATED THAT WE WERE COMING IN WITH A $15,000,000 DEFICIT, AND WE ARE DISCUSSING NOW A $6.3 MILLION DEFICIT. AGAIN, KUDOS, GREAT WORK. WE HAVE SOME THINGS AHEAD OF US. DR. WRIGHT, JUST REMIND ME. WAS IT THE '22, '23 SCHOOL YEAR WHEN THEY HOLD HARMLESS FOR ADA, WASN'T IT THE FIFTH, SIXTH WEEKS WHEN WE FOUND OUT THAT WE WERE [LAUGHTER] THAT'S WHEN THE DOWNFALL, BUDGETWISE, STARTED FOR US IS ALL OF THESE LAST MINUTE NOTIFICATIONS FROM AGENCIES AND EVERYBODY ELSE THAT IS HOLDING FUNDING. IF YOU DON'T HAVE THAT. THAT'S OKAY. I WANTED TO MAKE SURE THAT EVERYBODY KNEW THAT WHEN WE BUDGETED FOR THAT YEAR, WE WERE EXPECTED TO BE HELD HARMLESS AND WE DIDN'T FIND OUT UNTIL THAT LAST QUARTER. WAS IT '22? >> I THINK IT WAS '21, '20. SOMEWHERE AROUND THERE. >> '21, '22. >> WE ALSO BUDGETED, WE WERE EXPECTING 95% ATTENDANCE RATE BECAUSE THAT WAS OUR HISTORICAL. >> I WAS LOOKING BACK ON RANDY'S CHART. IT WAS '21, BECAUSE OUR AVERAGE DAILY ATTENDANCE AND ENROLLMENT WAS THE CLOSEST AT ANY POINT BECAUSE WE WERE HELD HARMLESS. THAT'S WHY THAT ATTENDANCE RATE WAS BETTER IN A PARTICULAR YEAR, AND THEN YOU KNOW IT WAS ONE OF OUR LEGISLATIVE PRIORITIES TO TRY TO GET FUNDED ON ENROLLMENT RATHER THAN ON ADA, BUT THAT DIDN'T FLY. WE'RE STILL WORKING ON THAT. THAT MAY BE ANOTHER ASK OR TO GET OUR HIGH SCHOOL ATTENDANCE FOR CREDIT CHANGED UP TO 95% IS ONE OF THE THINGS I'M GOING TO TRY TO GET SOMEBODY TO SPONSOR THIS YEAR. >> GOOD. AGAIN, JUST WANTED TO ADD TO THAT HISTORICAL CONTEXT, AT LEAST IN THE MORE IMMEDIATE PAST FEW YEARS BECAUSE WE'VE SEEN THAT HIT TOWARDS OUR BUDGET, I SHOULD SAY. BUT GREAT JOB, AGAIN, TO OUR COMMITTEE, OUR ADMINISTRATION, FOR OUR FRIENDS, AGAIN, THAT ARE LISTENING ONLINE. I THINK YOU HEAR THE HEART OF EVERYBODY THAT IS HERE, WHETHER THEY'RE EMPLOYED BY THE DISTRICT OR JUST HAPPEN TO BE HERE AS A VOLUNTEER THAT WE WANT TO CONTINUE TO ADVANCE HAYS. PEOPLE ARE LOOKING AT US TO SET THE STANDARD. WE SET OUT INTENTIONALLY TO MS. OROSCO'S POINT AND MISS PETREA'S POINT OVER THE YEARS, AND I KNOW THAT WE WILL CONTINUE TO DO SO. DO WE HAVE ANY OTHER QUESTIONS? TEAM, GREAT DISCUSSION. GREAT THOUGHT, GREAT FORESIGHT. WOW. [F. UPCOMING BOARD MEETINGS] OUR UPCOMING MEETING, WE HAVE OUR REGULAR SCHEDULED SCHOOL BOARD MEETING ON JUNE 17TH, 2024, RIGHT HERE IN THE HAYS CISD ACADEMIC SUPPORT CENTER AT 5:30 PM. IF THERE IS NO DISSENT, THEN WE WILL ADJOURN AT 8:52 PM. THANK YOU. * This transcript was compiled from uncorrected Closed Captioning.