May-13-2019-Budget-worksession-Segment-4
[00:00:00] Numbers is within the next 10 years middle schools like a huge growth bubble and the. Doesn't necessarily need more land because Meridian Creek is already set for a build a second build. So hard of our need is already met by existing building and structures. Just be a the capital. For doing that building as opposed to the land as I look at the 10-year plan, but that doesn't address the 20-year issue.
Our biggest need would be Middle School beyond what were contemplating for the potential of the next block and Crest Farm. We already own property for potentially another, Wilsonville. And goes like that's anticipated as we're talking for this upcoming Bond would be the primary school in that location.
[00:01:00] So I guess just to summarize is a consensus of the board and sorry for not being in the details here, but it's a consensus of the board that we're comfortable with hanging onto the six million dollars. We feel good about that and not reallocating all or part of those funds elsewhere to meet a more quicker need.
I think and correct me if I'm wrong. We're more than comfortable with it. You actually prefer it so that we can be nimble when opportunities arise enough me.
Thanks. Just on the topic of ending fund balance. I think generally I would support moving toward a more.
[00:02:00] And then potentially if the board could pursue a longer-term strategy as early as to Communications and Outreach and explaining and storytelling about why ending fund balance matters because it feels like it's a hard time right now to talk about cuts and then to talk about ending fund balance and increasing that because I think the storytelling around that is a longer-term proposition to really, you know factor in the history and factor in the impacts overall to the community and I've heard.
You know gfo a use a term where you explain it as two months of operating costs that you want to have in reserve and to me that's so much more impactful to talk about that than to just say a percentage and then it looks like we're not paying [00:03:00] attention to this feedback. We've received about these potential cuts.
And so I think for me I would feel most comfortable if and again not that we direct board. But if it was something that the board took on in the next year to look at those. Send to figure out how does it become part of our Communications about what we value as a district. So I'm overall not in love with the percentages as it exists now, but I also understand where we are and where we could go like in the next year as well as it relates to some of the funding propositions that are on the table.
Just just one one more comment on the ending fund balance a I agree I think you know being able to justify why we. I'm want that to be larger is important and it is difficult to kind of [00:04:00] balance that off with with talks of cuts. And I think the one rainy day that that I think we should be aware of is as the local option is it's a great gift from from the community, but.
When when the rainy day comes that's when that the bottom drops out of that faster than it can drop out of any other line item. So right now a 9 almost 10 million dollar item in this year's budget can go down so fast and and it is difficult to to incorporate that into any budget regardless of what kind of contingency put in place.
So I think you have to. Kind of balance out the needs and hopefully we could build a comfortable handing fund balance perhaps over time that can kind of recognize that we don't want to make cuts to get there but maybe figure out how [00:05:00] how can we slowly get there and just kind of build that stability that we've been able to have over the last few years.
These aren't easy conversations and their hard decisions inmate in writing the budget message. One of the options that is always in front of the board and this committee is to look at school days furlough days. I intentionally did not present that or recommend that. We've heard from Community also you know keeping a school year intact instructional hours the short Oregon school year although we don't really count days we count hours in Oregon.
and so I did not propose that but I just want you to remember that you have that available to you in looking at the survey results some [00:06:00] families did suggest that in lieu of FTE. And I know that you've looked at that you haven't brought it up. So I was reluctant to come back to that but I did not recommend it.
I think going into a potential Capital Bond local option. I think more of the community would have a misunderstanding and maybe not when we've done furlough days. It has not the feedback we've gotten from the community is more harm than. Then anything else and just to please Wade out and see if more funding comes and we don't have to make the kind of reductions that we have.
So I would still hold to my recommendation of not adjusting the school year, but just want you to know that it did come up in some of the responses from the community survey to consider that in lieu of reductions, and I haven't heard anyone bring it up, but just wanted to state that publicly.
[00:07:00] We have so we have a couple of items that to talk about. I think we have a motion in front of us. I think everybody has a copy if we want to to move with that we can make the motion and we can deliberate further on that. We've got the discussion about the the ending fund balance and you know, possible unofficial policy of eight percent.
And then we also have a proposal out there to continue discussion on the scheduled meeting on the 16th. recommendations on how to proceed.
I do have one question before I make a motion. I would like the feedback we received on the the amendment to the budget plan. [00:08:00] That was given about the priorities being restoring back license and classified positions. Maybe I'm nitpicking in regards to it. But I would just like to see the wording changed on this document so that it talks about priorities, right because there's many things on the bullet items as mentioned yours for items.
I would like to see the fifth item being, you know, increasing the reserve. You know, but that for me personally, I think that that should probably be later priority than restoring the licensed teachers, right, but that way the community knows that when money does come in from Salem. Hopefully that that money would be utilized first priority for restoring the teachers.
So the funds from House Bill 3427 are pretty stringently earmarked. It's like getting a grant it cannot be used towards purrs relief. Cannot be used towards ending fund balance. It's pretty well stipulated in that [00:09:00] legislation that's gone for the people voted on exactly what programs and initiatives it can only be used for and by doing that the the hope is that it will more likely withstand voter approval because it won't get lost in something like.
You know larger fund balances by some districts or purse relief which is controversial, you know, certainly in the state around around that so it is earmarked for class size reduction. It's called I think wellness and mental health support for students expanding learning options and expanding learning time.
That's the one. Category and then the other is pretty earmarked also towards Early Learning. That's why it's going to take a while before we see any of those funds because each one of those categories that has been promised to that legislation has to be spelled out with specifics around how a district would write that Grant proposal what they intend to use it [00:10:00] for what their current data is what expected outcomes they would see so we write proposals for all of that that gets sent.
Probably a committee that has to be developed or two that will then approve these so that's a long. Process unfortunately, but it does happen and then you know, the money gets already that funding comes with strings attached. Yes. Absolutely. It was very very carefully vetted a lot of conversations around the state of Oregon if we ask the voters for additional money through a tax revenue package.
What would what would you want to see it allocated? It was a very strong message from folks across the state the certain priorities that shaped the bill that then was put together by that that committee that's called the Student Success act and I'm kicking myself that during the break I didn't go and get that back-to-back document that I'd given the board and maybe I can no Kelly.
Do you have a copy of that still or Okay [00:11:00] can get it I guess.
Yes yes that address my question thank you.
other questions for discussion. have any motions on the table I'll make a motion to approve the 2019 2020 proposed.
I'll second. We'll open up for any deliberation.
Seeing none. We have a motion oh, yeah this morning. Dr. Brennan's expressed some interest in not approving it tonight, and I was wondering. If you be willing to elaborate a little more on maybe the benefits of not approving it tonight and allowing more [00:12:00] discussion.
there's substantial new information that's now available that wasn't available when the proposed budget. was prepared and I. I am very reluctant to approve a budget with a three and a half million dollar cut when I think that with additional information we might well find that there's substantial.
There's substantial Revenue that might. might help us avoid making this three and a half Million Dollar Cuts budget. And I can go through the information again, but it well the question is if we approved it tonight and things changed in a in a couple weeks or a month so that more funny became available wouldn't there be nothing in our [00:13:00] way to restore those cuts?
What we do what I'm trying to avoid is approving a Cuts budget.
And then basically leaving it up to up to the superintendent to restore it. We cut it the superintendent restore. Its I'm saying let's gather the additional information that might well add up to the three and a half million dollars wait just a day or two until the 16th or perhaps a little later and we might not there the need there might not be a need to make the three and a half million dollar cut.
When it seems that there's going to be there's several factors here and we're going to know the answers those factors at varying times. I wondered you have an idea in your mind of when a date would be where you'd be comfortable with enough information to make a decision. I think that we have a 30-day deadline prior to the budget hearing.
[00:14:00] Out at night will be made 24. Me. Pardon me May 24 with so I think even if we didn't tell me 24th, we'd have substantial more information. And again, it's the fiscal impact of House Bill 3427 take a look at the workload measures that were just handed out. The $900,000 additional from the May third Department of Education state school funding reconciliation the most recent OTE funding for 1920s showing an additional 1 1 million in local option Lively and property tax revenues taking another look at the 4951 split the LFO had it it 50/50, you know should we might there be additional?
Funding if we took another look at that. We already talked about the potential of. Using [00:15:00] some of the land sale proceeds for general fund but I think that's already been discarded take a look at the status of the IDE a funding bill before Congress take another look at the 1.7 million dollars in reservation for next year.
And again, the $750,000 in the governor's budget. I just I think that the question was when not that might be a bit information might be available. I think the May 15th. Your forecast absolutely, you know is a known date and I think that the other information will be forthcoming very soon. And I think we'll have substantial more information by the 24th and the other one that I didn't mention before but there are several purse bills that I think we're part of the negotiation to get 3427 past and that could have an impact on our ual.
So I just think with a little more time even up until the 24th. We might not need to make this [00:16:00] these Cuts. Dr. Ludwig if more funding comes in the next 10 days. My understanding is that you've already kind of give us some in order of priority of where that money is going to go. Is there any reason that might change or is every dollar that comes in an additional we already have?
Already been earmarked as you laid out tonight. Well, the first thing we'd like to do is make sure we don't have to do those reductions that we can carry over staff as we have that we don't have to do the 18ft the 2 and the 12 classified equivalency. We might hold on that administrative position as it is once we can.
Do that. So, we're not reducing their and not all of the governor's budget. I mean that's 3.5 million. We're talking about quite a bit. So the governor's budget isn't going to cover [00:17:00] that and they if we go with that so then if House Bill 3427 holds. The second year we could address some of the others but what we're looking at is any changes where we might see something comes in a little stronger if you decide to shift over the 1.1 million if you decide to go with a lower ending fund balance any way that we could capture more of the 3.5.
We'd like to retain, you know, the Staffing and the professional development which is why I wrote that amendment in there that that would be the first priority. What I just passed out so viewers at home and folks in the audience know to the budget committee members who are not board members is a little more information on that house bill 3427 and you can see it says eligible uses for student vestment [00:18:00] additional learning time.
Students physical and social-emotional health and safety class size reduction and then it talks about some other categories and then on the back, so that's that would be the 1 billion 50% there and then the other billion would be divided up between these two areas other Statewide education initiatives as well as early learning account.
So we would have to demonstrate in our proposal. What would we be what we would be using our funding for and you can see nowhere on here. Does it say ending fund balance or. Harper's Reserve, but there are quite a few other initiatives that would work really well for us in address comments that you've heard from parents.
Any other comments? I think just to reiterate if more money comes in. I think we see in the budget message the [00:19:00] amendments to the plan the bullet points there kind of the order that the money would would be used to too. That's that are in the early part of the. And I just want to assure the committee in our board that we are being very cautious about even though we wrote this proposal while ago we have not moved on those except where we knew a change was coming.
Anyway with the shift that did involve someone losing their job, but maybe someone was returning wanting to return to the classroom anyway, or we were discontinuing with something and it was easy to then say to that staff member, you know, you'll go back and do this or that and go ahead and. You know get ready for that next year.
So those kinds of soft adjustments, you know, very few of them. But for the most part were wearing what we call a holding place our board will know that they have approved a lot of hires and and instead I thought we were [00:20:00] making reductions. We approve a lot of hires because we do need a lot of positions still filled and hard to higher places and keep programs, but we still have this whole that we know we can make and hold onto even.
Too late in the summer if need be but anywhere we get some relief and don't have to make as many we won't. Just to say it a third time in a different way if we reconvene as a budget committee, either on the 16th or the 24th with more information and if that more information is additional money in addition to the projections here.
We would just see a. Budget that would recognize that additional money to offset any Cuts itemized in this budget. That is correct that the 18 ft e might go down to 14 13 or 12 the two non-classroom might go away entirely the 12 equivalency might be down to four five. [00:21:00] So we would just work with what our existing program and Staffing is to try and restore that back.
The comments. So if we need to have the second thing the second myth that must take place on May 16 because May 24 is the appropriate chart must happen and that day I have to do the publication. as I have the window before June 10, so. So don't 10 is our regular board meeting for budget hearing and adoption.
So I walked back the calendar day. So May 14th, it'll last day for approve the budget and send out a. but for the second meeting if we need to have the second budget within May 16 with a day unless the board decides to have for the budget committee wants to have. Approve the [00:22:00] budget later the board wants to approve the budget later than June 10th.
And you created a longer timeline. We just needed adopted. Sorry, the board adopts creates a later June 10 like June 17th to adopt the budget then we can push the meeting. We just need an adopted budget by June 30th. That's that's the most stringent deadline right now. We've got a June 10th meeting that we're working with.
If the board wants to move that to June 17th or 24th, you know, you can certainly do that. And then your second meeting would then accordingly also could shift. In terms of discussion. I feel like we talked around the ending fund balance balance issue, but we haven't Incorporated it into. The budget plan we haven't and I would like.
[00:23:00] some more certainty about where we're falling on the ending fund balance. Why don't we address the motion on the table? And then if you want to making a second motion them then it would be that we have discussion on that. That's kind of a separate topic. It impacts my vote on approving the budget is why?
Can I just ask you a question? So then is and and possibly Dylan as well. Are you proposing that we would change the ending fund balance? As it's currently proposed. Are you asking for future efforts? I think you invest in. An ending growing and ending fund balance right I think maybe what your fridge is requesting is more certain key such as a sound what we've agreed to now [00:24:00] is that if we get receive additional money the first priority is to restore cuts and then beyond that if we have additional money after the cuts are restored what are we going to do with that money I would like to see it go towards an ending funding balance until we reach a point of 8%.
Triple H. Is that kind of certainty you were well, I heard actually mr. Konakawa say the same thing that he would want somewhere in the amendment budget plan to be ending fund balance. And so I thought that was on the table.
So if we have to get the additional information if we receive more money in the next few days or so, the benefits are. Put in that money. So what ending fund balance will help us? What does 2021 they can't right now we look okay for 1920, but we're not okay for [00:25:00] 2021. So if we have additional money and then we restore the fde then we face and problem in 2021.
Would it make sense if there were additional funds? Young young restoring the cuts and possibly bumping the contingency up with those additional funds with the knowledge of the way. It was treated this year that any unused contingency then falls into the ending fund balance.
What I'm saying is if we ReStore in the cut for this 1920 this means that cut carry into 2021 at well. so the fact that we cut 3.5 [00:26:00] million in 1920. That not only have 19 20, but also have 20 21. Or domino effect. So so maybe we could come back to mr. Comic hours comment of would you want to see a certain amount of restoring but only up to a certain amount in the unfair ending fund balance that then allows the second year of the biennium, you know to look.
Healthier than it does right now, which could be anywhere from 3 .8 25.8 depending on the usage of. you contingencies. It's I don't know how you would how we would write that in. If you write a dollar amount, you might feel locked into that or percentage, but maybe some kind of maybe that's what sometime could give us is.
[00:27:00] Burbage around that you like with if we receive additional funding 50% go to our quiz or an FTE 50% over to and unbalanced 54. Just in terms of discussion and you know, I'm inclined with dr. Reynolds tow a to see if. question is you know fruitful because we have some information from the state that.
Indicates that we might go beyond restoring the cuts. So
can I ask a process question since we have a motion on the table in it and a second so we have to act on that motion. And then if that motion does not pass then we can address the [00:28:00] motion of having a an additional me and someone could well we have one set up someone could set in motion that to wait not approve or we go through the approval we have to do this one first, right?
Because you've had two members who have put a motion and second it you need to do something with this motion. Yeah, so if there is no further discussion on that and we should call a vote on the motion of
the table.
That's the King Martin. I Eddie Reynolds No catfish. Oh. Vice chair hides Hi Meghan Molitor. Yes, Greg Nelson. Oh, I'm Chemin [00:29:00] Kawa. That Helen yes question. Whyatt yes even Owen. Yes.
Six, yes for now.
So.
Okay, so based on that vote the [00:30:00] the motion passes no further business in front of this committee. I. wait for the year. Thank you very much.
This was stated at the beginning. This is the budget committee approving the board still has to adopt and there's quite a bit of time between now and then the board can always direct staff to work on some things to give them more information to the point where they could adopt a budget. So just want to remind the public of that as well as this group.
Yeah.
From a process.
from a process standpoint. I believe there's a certain threshold that if the budget is increased by a certain percentage the committee would reconvene.
[00:31:00] I probably shouldn't have spoken because I know you ended the meeting and I was just making a comment to the public who might be viewing about the difference between an approval and an adoption so if it sounds like the committee still has more discussion to have than did you want to reopen the meeting or if you ended it.
I think I think we ended it. But thank you. Thank you very much. Thanks for you.