[5. CLOSED SESSION AGENDA]
[1. Conduct a Public Hearing to Review the District's 2020-2021 Preliminary Budget]
[00:05:29]
SO THEN WE WENT OUT ON MARCH 13.
[00:05:31]
SO US CLOSING SCHOOLS EARLY AND NOT HAVING KIDS CREATED TWO MATERIAL CHANGES FROM THE SECOND INTERIM BUDGET. SO IF YOU GO BACK AND PULL OUT YOUR SECOND INTERIM AND SEE HOW WE PREDICTED, THEN WE WOULD CHANGE VERSUS HOW WE ARE ACTUALLY PREDICTING NOW.SO, OF COURSE, SINCE WE DON'T HAVE STAFF AND KIDS ON SITE FOR LIKE THE PAST LAST TWELVE WEEKS OF SCHOOL, AT A MAJOR UNDERSPENDING IN THE UTILITY LINE ITEMS THAT WE HAVE ADJUSTED FOR ON THE ESTIMATED ACTUALS.
SO THAT AMOUNTED TO THREE HUNDRED AND THIRTY TWO THOUSAND DOLLARS.
NORMALLY WE SPEND ABOUT 1.5 MILLION ON ALL OUR UTILITIES THIS YEAR.
SO THAT WAS LIKE A TWENTY TWO PERCENT CUT TO THAT LINE ITEM BUDGET.
NOW, GOING INTO NEXT YEAR, WE'VE BUDGETED AS NORMAL THINKING THAT WE'RE GOING TO COME BACK. SO BUT FOR THAT 19-20 ESTIMATE ACTUALS, WE WERE ABLE TO REDUCE THE LINE ITEM BY THAT MUCH. THE OTHER BIG HIT TO THE BUDGET GOING THE OTHER WAY IS OUR SCHOOL AGED CARE PROGRAM. SO IN OUR CHILD DEVELOPMENT FUND IS WHERE WE ACCOUNT FOR OUR OUR SCHOOL AGED CARE PROGRAM. THAT'S ALL PARENT SUPPORTED BY PARENT FEES.
YOU KNOW THAT WHEN WE WENT OUT ON MARCH 13TH, THE GOVERNOR SAID TO THE SCHOOL DISTRICTS, STATE IS GOING TO PAY YOU ALL YOUR FUNDING, AS WE HAD PREVIOUSLY TOLD YOU, WE WON'T CUT YOU MID-YEAR. BUT IN RETURN, YOU NEED TO EMPLOY ALL OF YOUR EMPLOYEES THROUGH THE END OF THE SCHOOL YEAR, WHICH WE DID AND WE DID GLADLY.
BUT IN THOSE SCHOOL AGED CARE FUND, THAT MEANS THERE WERE NO REVENUES COMING IN FROM PARENTS. SO THAT CREATED A HIT TO THAT FUND.
AND AT THE SAME TIME, THE FUND THEN WAS ALSO UNABLE TO PAY ITS INDIRECT COSTS TO THE GENERAL FUND. SO THAT'S A TOTAL HIT TO THE GENERAL FUND OF SIX HUNDRED FIFTY TWO THOUSAND DOLLARS. AND AGAIN, WE WE HAVE NOT PROJECTED THAT THAT WOULD CONTINUE INTO THE BUDGET.
BUT FOR THE 19, 20 YEAR, WE DID HAVE TO RECORD THAT AS AN IN OUR ESTIMATE ACTUALS.
SO TAKING THOSE TWO MATERIAL CHANGES AND THEN ALL OF THE OTHER CHANGES, INS AND OUTS THAT WE WOULD DO FOR ALL OF THE OTHER BUDGET ITEMS AT SECOND INTERIM, WE WERE PROJECTING A LOSS. TOTAL GENERAL FUND, GENERAL FUND LOST ABOUT 5.5 MILLION AT THE ESTIMATE ACTUALS.
IT'S ACTUALLY IMPROVED TO A 5.2 MILLION DOLLARS LOSS.
STILL A LOSS, BUT A FAVORABLE BUDGET CHANGE OF TWO HUNDRED SIXTY FOUR THOUSAND DOLLARS.
NOW, THAT TOTAL DECREASED TO GENERAL FUND 5.2 MILLION MADE UP OF UNRESTRICTED FUNDS TO INCREASE JUST UNDER OVER FOUR MILLION, AND THEN THE RESTRICTED FUND NET INCREASE 1.1.
AND AGAIN, RESTRICTED FUND IS OUR CATEGORICAL PROGRAMS, MOSTLY TITLE ONE.
AND THEY SAY THAT REFLECTS A CARRYOVER FROM THE PRIOR YEAR.
SO PUTTING THAT ALL TOGETHER, ESTIMATED GENERAL FUND BALANCE AT THE END OF 19-20 IS A TOTAL OF 25.898 MILLION.
AND YOU CAN SEE THAT'S MADE UP OF ABOUT THREE MILLION RESTRICTED RESERVE DESIGNATED AND UNRESTRICTED OF THE 22.8 MILLION.
THAT'S A VERY COMFORTABLE ENDING FUND BALANCE.
THAT'S HIGHER THAN THE AVERAGE FUND BALANCE.
THREE AND FIVE SCHOOL DISTRICTS IN THE STATE, WHICH IS AROUND 14, 15 PERCENT.
IT'S 19.5 PERCENT OF TOTAL EXPENDITURES AND STATE REQUIREMENT IS THREE PERCENT.
AND OUR DISTRICT REQUIREMENT IS SEVEN PERCENT.
SO FOR THE YEAR, BECAUSE THE DISTRICT HAS BEEN VERY CAUTIOUS, VERY PRUDENT IN ITS BUDGETING OVER MANY, MANY YEARS, WE'VE BEEN ABLE TO AMASS THAT NICE FUND BALANCE, WHICH IS WHAT YOU WANT TO DO RIGHT.
WHEN YOU'RE HEADING INTO LIKE THE KIND OF TIMES THAT WE'RE HEADING INTO.
SO WE SPEND THE SUMMER NOW CLOSING OUR BOOKS, AND WE DO THINK THAT FINAL RESULTS, SO AT LEAST IN THEM MANY PAST YEARS, HAVE ALWAYS BEEN BETTER THAN ESTIMATED ACTUALS.
A LARGE PART OF THAT IS IN THAT RESTRICTIVE FORM WE DO BUDGET THAT WE'RE GOING TO SPEND ALL OF OUR FUNDS, ALL THE GRANTS.
AND TYPICALLY, WE'RE NOT GOING TO SPEND ALL GRANTS.
AND THERE'S USUALLY UNDERSPENDING IN OUR OTHER EXPENDITURE ACCOUNTS.
AND SOMETIMES AND THEN WE ALSO COLLECT REVENUES THAT WE HADN'T PLANNED ON.
SO IT SHOULD COME IN BETTER THAN THAT FIVE MILLION DOLLAR LOSS.
WE WILL GO ON TO THE 20-21 BUDGET.
[00:10:03]
SO I PUT THIS SLIDE IN LAST WEEK WHEN WE'RE PUTTING THE SLIDES TOGETHER.I STARTED TO MAKE LIKE DETAILED SLIDES AND I SAID, NO, I DON'T I DON'T THINK I'M GOING TO DO THAT. AND THAT WAS A GOOD CALL BECAUSE WE WOULD HAVE ALL OF IT WRONG RIGHT NOW.
WE'VE HAD A LOT OF CHANGES IN OUR IN OUR BUDGET OVER THE OVER THE LAST WEEK OR SO.
SO I WILL I WILL TRY TO EXPLAIN WHAT'S BEEN GOING WELL GOING ON WITH THE STATE BUDGET.
AND THEN AS WE WALKED THROUGH THE SLIDES OF OUR BUDGET, I'M GOING TO JUST TELL YOU, JUST PUT A BIG X THROUGH SOME OF THEM AND WE'LL WE'LL GO FROM THERE.
SO, YOU KNOW, THE PROCESS I TALKED ABOUT THE PROCESS OF THE JANUARY AND THEN THE MAY REVISE. SO WHEN THE GOVERNOR CAME OUT WITH HIS MAY REVISE, WHAT HE WAS PROPOSING WAS GIVING THE DISTRICTS A COLA AND THEN A 10 PERCENT CUT.
SO THE NET OF THAT WAS ABOUT EIGHT PERCENT FOR US.
IT WAS 8.05 PERCENT CUT TO LCFF WAS WHAT HE WAS PROPOSING IN THE MAY REVISE.
HE DID PROPOSE SOME ADDITIONAL FUNDING FOR SPECIAL ED AND THEN SOME RELIEF ON THE STAIRS AND PERS. SO A REDUCTION TO THOSE RATES, WHICH WOULD BE HELPFUL TO US.
SO EVERYTHING YOU'RE SEEING ON THESE SLIDES IS THAT WAS WHAT WE BASED OUR BUDGET ON.
AND BECAUSE OF OUR HIGH FUND BALANCE, WE COULD THEN GET THROUGH THE FIRST YEAR.
SO OBVIOUSLY THAT'S A HUGE CUT A PERCENT.
SO THE BUT BECAUSE WE HAVE THAT HIGH FUND BALANCE GOING INTO THE YEAR, WE WOULD HAVE BEEN ABLE TO MAKE IT THROUGH THE FIRST YEAR, 2021.
NO PROBLEM. BUT THE OUT TWO YEARS, WE WOULD SHOW A NEGATIVE FUND BALANCE BECAUSE IT WAS JUST THAT'S JUST SUCH A HUGE HIT, EVEN WITH THE ASSUMPTION OF CUT IN 2021 AND THEN FLAT FUNDING IN THE NEXT TWO YEARS OUT.
SO THEN THE LEGISLATURE CAME IN AND PASSED THEIR BUDGET.
AND WHAT THEY SAID IN THEIR BUDGET IS WE'RE.
OH, NO, NO, NO, MR. GOVERNOR, WE'RE GONNA GIVE THE SCHOOLS A COLA AND NO CUTS AT ALL.
SO WE PRETTY HAPPY ABOUT THAT BECAUSE EVEN THAT, EVEN WITH NO COLA.
SO I'VE CALCULATED NO COLA, JUST FLAT FUNDING, THAT WOULD HAVE GIVEN US A FIVE PERCENT.
AND IF I'M BALANCING A THIRD YEAR OUT, FIVE PERCENT IS GREAT.
AGAIN, WE WERE DEFICIT SPENDING SO WE WERE GOING TO HAVE TO DO SOMETHING.
BUT STILL WE WOULD HAVE HAD A FIVE PERCENT ON THE ON THE THIRD YEAR OUT.
SO YESTERDAY AT ABOUT IN THE AFTERNOON, WE GOT THE DETAILS.
SO THE DETAILS WERE, AGAIN, THAT NO CUTS, NO COLA AS WE AS WE EXPECTED, WE GETTING THE STORES AND PERS THAT WE THOUGHT WE WOULD GET THAT SERS AND PERS RELIEF.
AND WE'RE GETTING THE SPECIAL ED MONEY HOLD HARMLESS ON ADA AND FLEXIBILITY ON INSTRUCTIONAL MINUTES. SO THERE'S A LOT OF DETAIL IN THERE.
JIM, MATT IS READING VERY CAREFULLY RIGHT NOW ABOUT HOW WE'RE GOING TO TAKE ATTENDANCE NEXT YEAR AND WHAT HAPPENS IF WE DO HAVE TO GO OUT AGAIN.
THAT'S A LOT OF DETAIL THAT WE NEED THAT WE NEED TO GO THROUGH.
BUT THERE IS A HOLD HARMLESS ON THE ADA.
SO THEY'RE SAYING WE'RE GOING TO PAY YOU THE SAY ON THAT BASED UPON THE SAME ADA THAT WE THAT WE FILED THIS YEAR, WHICH IS SO, AGAIN, OF A FLAT ADA FUNDING.
AND THEN THEY'RE ALSO STILL ARE DEFERRALS.
SO THE GOVERNOR HAD PROJECTED IN MAY AND THEY'RE STILL GOING ON SOME PRETTY SIGNIFICANT CASH DEFERRALS. SO THE WAY THE DEFERRALS WORK IS THE STATE SAYS, OKAY, SCHOOL DISTRICT, YOU CAN COUNT THIS REVENUE AS REVENUE IN THIS YEAR.
AS A STATE, WE'RE GONNA COUNT AS AN EXPENSE IN THE NEXT YEAR WHEN WE ACTUALLY PAY YOU OUT THE CASH. SO THAT MAKES NO SENSE IN THE ACCOUNTING WORLD.
YOU'RE NOT ALLOWED TO DO THAT.
THAT'S CALLED THE MATCHING PRINCIPAL THAT YOU'RE VIOLATING THERE.
BUT THAT'S THE WAY THEY DO IT.
SO FOR US, IT THEN BECOMES A CASH FLOW PROBLEM.
WE HAVE TO MAKE SURE WE HAVE ENOUGH CASH FOR US AGAIN BECAUSE WE HAVE A VERY HIGH FUND BALANCE. AND ALSO BECAUSE WE HAVE OTHER FUNDS WE CAN DRAW ON IF WE ABSOLUTELY HAD TO, WHERE WE WERE NOT AS WORRIED ABOUT THAT AS SOME DISTRICTS THAT ARE REALLY ON THE EDGE.
BUT THERE STILL ARE SIGNIFICANT DEFERRALS IN THERE.
NOW, THE OTHER THING WE LEARNED AT TODAY IS WE THIS IS THE GOOD PART, THE LEARNING LOSS MITIGATION FUNDING.
SO THERE'S THREE POTS OF MONEY THAT THEY'RE PROJECTING NOW THAT WE WOULD GET NEXT YEAR IN THE DISTRICT, THREE POTS OF MONEY BASED ON THREE DIFFERENT FACTORS.
AND THIS IS ONE TIME ONLY MONEY.
AND THIS IS BASICALLY BEING FUNDED BY FEDERAL FUNDS THAT THE STATE IS EXPECTING TO RECEIVE. SO WE HAVE ONE POT BASED ON SPECIAL EDUCATION.
WE HAVE ANOTHER POT BASED ON THE START, REGULAR EPA.
AND THEN THE THIRD PART IS BASED ON OUR SUPPLEMENTAL CONCENTRATION FUNDING LIMIT, THE 40 PERCENT. SO ALL THREE OF THOSE TOGETHER.
THE PRELIMINARY ESTIMATE WE GOT FROM SCHOOL SERVICES YESTERDAY WAS A 6.5 MILLION DOLLAR INCREASE TO US TO DISTRICT ONE TIME ONLY.
SO THERE IS A LOT TO PROCESS IN THERE.
[00:15:04]
THE QUESTIONS ON THAT ONE TIME FINDING IS, IS THAT PART OF THE DEFERRAL ALSO? AND MORE IMPORTANTLY, IS THAT SUBJECT TO THE SUPPLANTING RULES? CAN WE USE IT FOR SOMETHING WE'RE ALREADY SPENDING ON NOW? OR DOES IT HAVE TO BE FOR BRAND NEW? SO WILL ALL OF THOSE THINGS WE'VE GOT TO WORK THROUGH AND THEN ALL THE REQUIREMENTS OF WHAT WE CAN SPEND IT ON.IT SEEMS PRETTY GENERAL RIGHT NOW.
IT'S IT'S THE STATE WANTS US TO BE ABLE TO OBVIOUSLY WE HAVE A LOT OF EXPENSES THAT WE'RE HAVING TO INCUR BECAUSE OF COVID 19 AND ALSO IF WE HAD TO GO OUT AGAIN.
SO WE'RE GOING TO BE WORKING THROUGH ALL OF THAT, OBVIOUSLY, AS A TEAM HERE TO WORK THAT ALL OUT. SO AS WE GO THROUGH HERE, I'M GOING TO I'M GOING TO POINT OUT AGAIN THE SLIDES THAT ARE WRONG AND KIND OF TRY TO TELL YOU LIKE THIS IS WHAT IT WOULD LOOK LIKE WITH THE FLAT FUNDING.
AND I'M GOING TO KEEP THAT ONE TIME MONEY OUT FOR NOW.
BUT I'LL POINT THAT OUT TO US AS WE GO ALONG.
SO JUST ONE MORE SIDE ABOUT THE STATE BUDGET.
I WANT YOU TO KNOW THAT YOUR SUPERINTENDENT IS A GREAT SUPERINTENDENT AND HE CAN ALSO PREDICT THE FUTURE, BECAUSE LAST WEEK HE SAID TO ME, SUSAN.
AND HE'S SO GREAT, HE DOESN'T MICROMANAGE ME AT ALL.
HE NEVER TELLS ME WHAT TO PUT IT, MY SLIDES.
BUT HE LAST THING HE DID HAVE A REQUESTS.
HE SAID, I WANT A PIE IN THE SKY.
THIS LEGISLATOR'S BUDGET IS PIE IN THE SKY.
AND HE WAS RIGHT. THERE YOU GO.
DON'T WORRY. SUSAN SAID ABOUT, YOU KNOW, TWELVE HOURS TO TRY TO FIGURE THE BUDGET OUT.
SHE NEEDS ABOUT ONE MORE HOUR AND THEN WE'LL HAVE IT ALL DIALED.
AND NOTHING ELSE WILL CHANGE BETWEEN AUGUST 24TH.
OK, LET'S LET'S DIVE INTO OUR BUDGET.
OK. SO, AGAIN, YOU KNOW, OUR BUDGET IS JUST REALLY A LIVING, BREATHING DOCUMENT.
WE FIRST PUT TOGETHER A 20 21 BUDGET BACK IN JUNE OF 2008 TEAM.
WHEN WE WERE DOING THE BUDGET, THERE WAS THE THAT WAS WHEN IT GOT ADDED INTO THE THREE YEAR PROJECTION. AND WE'RE JUST CONSTANTLY UPDATING THESE THINGS ALL THE TIME.
AND WE ALWAYS ADDING THAN NORMAL REOCCURRING EXPENSE CHANGES LIKE OUR SEPARATE COLUMN AND INFLATIONARY INCREASES.
WE'RE CONSTANTLY UPDATING THE LCFF.
AND THEN ALSO WE HAVE TO LOOK AT THE BUDGET FOR ENROLLMENT AND PROGRAM CHANGES.
SO WE KIND OF PUT ALL THAT STUFF TOGETHER EVERY YEAR.
THIS THIS SLIDE HERE SHOWS YOU THIS IS THE ESTIMATE ACTUALS THAT WE JUST TALKED ABOUT, WITH THE ENDING FUND BALANCE FOUR SIX THREE TWENTY OF THE 25.8 MILLION.
SO THIS LINE HERE IS IS ALL CHANGED NOW.
THIS REVENUE ACCOUNT IS GOING TO CHANGE.
SO LET'S GO TO SLIDE WHERE WE CAN TALK ABOUT THAT BETTER.
LET'S JUST GO THROUGH THESE. OK.
NOW LET'S LOOK AT THIS ONE. OK.
IT'S 18 19. IS ACTUALS PROJECTED.
WAS THIS WAS THE ACTUAL TOTAL REVENUES, 18 19 GENERAL FUND.
THIS IS WHAT WE JUST TALKED ABOUT FOR 19 20 AND THIS 2021.
NOW IT'S GOING TO BE 109.8 MILLION.
IT'S GOING TO BE AROUND UP HERE JUST ABOUT TWO MILLION DOLLARS LESS THAN THE 19 20 ESTIMATED ACTUALS. AND THAT, AGAIN, IS WITH B FLAT FUNDING FOR NEXT FOR NEXT YEAR.
AND THE LCFF IS GOING TO MAKE UP 79 PERCENT OF THAT AGAIN.
SO THE THE LARGEST, LARGEST PART OF OUR FUNDING OBVIOUSLY LCFF.
IT IS A LITTLE LESS THAN 1920 ESTIMATED.
IT ALWAYS LOOKS LIKE THAT BECAUSE AGAIN, IN 1920, WHERE WE ARE, WE HAVE CARRYOVERS AND WE'RE PROJECTING THAT EVERY CENT GETS GETS SPENT AND THAT IS THAT MATCHING THERE SO THAT THE NEXT YEAR ALWAYS LOOKS A LITTLE LESS.
BUT IT'S GOING TO BE JUST ABOUT FLAT FUNDING.
AGAIN, THIS IS ALL CORRECT, EXCEPT THIS COLUMN HERE WOULD THEN BE UP TO THE 9500.
THAT'S WHAT WE'RE PROJECTING TO GET NEXT YEAR UNDER THE FLAT FUNDING.
IT JUST THIS THIS IS JUST KIND OF A HISTORICAL.
SO YOU CAN SEE BACK IN 13, 14, WHEN WE STARTED INTO THE LC F F FORMULA, HOW IT'S GROWN SINCE THEN. IT'S QUITE A NICE INCREASE.
AND MOVING ON TO EXPENDITURES.
TOTAL EXPENDITURES PROJECTED FOR 2021 IS 113.3 MILLION.
THE MAJOR CHANGES THAT WE HAVE IN THERE FROM 1920, OF COURSE, IS OUR STEP IN COLUMN THAT WE HAVE EVERY YEAR. THE RATE CHANGES FOR THE STRS AND PERS RETIREMENT PLANS.
AND THAT'S USING THE MORE FAVORABLE RATES THAT THE GOVERNOR HAD PROJECTED IN THE MAY REVISE AND AGREED TO BY THE LEGISLATURE.
SO ACTUALLY SPENDING A LITTLE LESS ON RETIREMENT NEXT YEAR.
AND THEN WE PUT IN NORMAN NORMAL INFLATIONARY INCREASES FOR GOODS AND SERVICES AND NOTHING EXTRA.
AND THERE ARE NO NEW PROGRAMS, OBVIOUSLY NO RAISES, NO INCREASES IN THE HEALTH INSURANCE ESTIMATE. ALL THOSE THINGS, IF YOU REMEMBER LAST YEAR AT THIS TIME OF THE YEAR, WE HAD
[00:20:02]
ALL THOSE IN THERE. BUT THAT'S NOT DID NOT HAPPEN THIS YEAR.THIS CHART SHOWS THE BREAKDOWN BY CATEGORY, AND, OF COURSE, WE'RE A PEOPLE DRIVEN BUSINESS AND WE HAVE THAT.
EIGHTY FOUR PERCENT OF OUR EXPENDITURES ARE IN SALARY AND BENEFITS.
AND YOU COULD SEE ALL THE OTHER CATEGORIES.
AGAIN, WITH THE EFFECT OF THE CARRYOVERS, THAT'S WHY IT LOOKS A LITTLE LESS FOR 2021 AND ALSO BECAUSE WE HAVE NO RAISE, I THINK LAST YEAR THAT WAS PROBABLY A LITTLE HIGHER BECAUSE, AGAIN, WE HAD A RAISE LAST YEAR AND WE ALSO INCREASED THE HEALTH INSURANCE ALLOWANCE. BUT BECAUSE BASICALLY IT'S JUST A FLAT BUDGET.
THAT'S WHY IT'S LOOKING LIKE THAT.
OK, SO AGAIN, THIS ONE'S WRONG.
SO THE ESTIMATED DECREASE NOW.
SO WHEN WE THOUGHT WE WERE AT THAT EIGHT PERCENT CUT, WE WERE LOOKING AT ELEVEN MILLION DOLLAR DECREASE IN OUR BUDGET, WHICH IS ABSOLUTELY HUGE.
AS YOU KNOW. SO NOW THAT NUMBER IS GOING TO BE MORE A 3.4 MILLION DOLLAR LOSS.
AND THEN THIS CHART HERE AGAIN, CORRECT? ESTIMATED THAT WE TALKED ABOUT BEFORE, AND THEN THIS WOULD SHOW UP AS A 17.14 PERCENT ENDING FUND BALANCE TO 22.5 MILLION, 17.`4 PERCENT.
SO STILL GOING DOWN A LITTLE BIT, BUT STILL MUCH MORE COMFORTABLE AMOUNT OF MONEY.
OK. SO FOR OUR ASSUMPTIONS, AGAIN, THE LCFF WERE A NO CHANGE IN ALL THREE YEARS.
NOW, NOT JUST THAT TWO OUT YEARS, ALL THREE YEARS, NO CHANGE.
ZERO COLA. ZERO CHANGE IN ADA.
ALL OF THE REVENUES, NO CHANGE.
AND THEN FOR THE EXPENDITURES AND JUST STEP IN COLUMN THE REGULAR INFLATIONARY AND THEN THE STRS AND PERS RIGHTS THAT HAVE BEEN PROJECTED NOW BECAUSE THERE STILL ARE INCREASES IN THE OUT YEARS.
AND THOSE ARE STILL WORKED INTO.
AND THEN WE CAN FORGET ABOUT THIS PROJECTED FISCAL STABILIZATION PLAN BECAUSE THAT'S GOING TO GO AWAY ON THIS CHART.
YOU KNOW, IT'S GOING TO BE THE SAME.
AND THEN THIS WOULD BE THE NINETY FIVE HUNDRED DOLLARS ON THE THREE OR SO.
I WANT TO. I'D LIKE TO SHOW THIS CHART JUST TO SHOW YOU.
SO A COUPLE SIDES AGO, YOU SAW THE ACTUAL DOLLARS PER KID THAT WE GOT FOR ADA.
THIS KIND OF SHOWS YOU THE CHALLENGE OF SCHOOL DISTRICT FUNDING AND BUDGETING.
SO BACK IN 13, 14, WHEN WE STARTED WITH LCFF, THE FIRST YEAR WE GOT A FOUR AND A HALF PERCENT INCREASE, WHICH IS GREAT.
AND THINK WE NEED ABOUT TWO AND A HALF TO THREE PERCENT EVERY YEAR JUST TO COVER NORMAL STUFF IN COLUMN AND NORMAL INFLATIONARY INCREASES.
SPECIAL AND INCREASES IN SPECIAL ED.
SO, YOU KNOW, IF WE HAVE THREE, TWO AND A HALF, THREE PERCENT, WE'RE GOING TO DO OK.
AND THEN WE LIKE HAD THESE TWO FABULOUS YEAR DOUBLE DIGITS INCREASES.
AND WE WENT DOWN, GOT MORE NORMAL UP AND DOWN AGAIN.
SO THIS IS GOING TO BE ZERO NOW INSTEAD OF THAT 8.2 PERCENT.
ZERO ZERO ZERO. SO THIS IS, AGAIN, THE CHALLENGE OF WHEN YOU'RE JUMPING UP AND DOWN LIKE THIS AND WHY YOU NEED THE BALANCE THAT WE HAVE.
BECAUSE, YOU KNOW, IF YOU'RE DEALING TO DEAL WITH THIS, THAT'S WHY YOU NEED THAT FUND BALANCE. AGAIN, THESE ARE THE CUTS WE WOULD HAVE HAD TO MAKE IF WE HAD THAT A PERCENT CUT.
SO YOU CAN JUST PUT IT PUT A BIG OLD X THROUGH THAT.
WE'RE NOT GONNA WORRY ABOUT THAT. AND SO NOW OUR PROJECTION IS 17.14 PERCENT ON THE FIRST YEAR, 17.14, 12.45 AND 5.47.
YOU KNOW, WE'RE GOING TO HAVE TO ADDRESS THAT AND LOOK AT AND LOOK AT THAT, BUT MUCH BETTER. THESE THESE THREE PERCENTS IN THIS ONE ARE ONLY MADE BECAUSE I INSERTED THOSE HUGE CUTS THAT ON THE PRIOR PRIOR SLIDE TO MAKE THOSE TO MAKE THAT WORK OUT.
THE REAL NUMBERS ARE MUCH WORSE THAN THAT.
IF WE HAD HAD THE EIGHT PERCENT CUT.
BUT GOING FORWARD NOW WE'VE GOT THAT.
AND AGAIN, THERE'S NONE OF THE ONE-TIME MONEY IS IN ANY ANY OF THESE NUMBERS THAT I'M SAYING TO YOU RIGHT NOW. OK, SO NEXT, WE'RE GOING TO UPDATE OUR BUDGET TO THE STATE BUDGET. BRING BACK A BIG BUDGET ADJUSTMENT ON THAT.
[00:25:04]
WE'RE GOING TO CLOSE THE BOOK ON THIS YEAR AND DETERMINE OUR CARRYOVERS START SCHOOL, COUNT ENROLLMENT AND THEN KEEP WORKING ON THE BUDGET AND COME BACK, YOU KNOW, REPORT MORE AGAIN AT SECOND INTERIM.AND I WANT TO THANK SONYA [INAUDIBLE] AND OUR FABULOUS CREW WE HAVE BACK THERE IN THE COUNTY DEPARTMENT FOR DOING THIS ALL AND DOING PROBABLY NINETY FIVE PERCENT OF THIS WORK FROM HOME. AND THEY ZOOM CONSTANTLY TO AND TALKING TO EACH OTHER AND PUTTING THIS ALL TOGETHER IN OUR NORMAL PROCESSES.
WE MEET WITH EVERY BUDGET MANAGER.
THEY DO LIVE MEETINGS. SO EVERY BUDGET MANAGER, OBVIOUSLY, WE COULD NOT DO THAT THIS YEAR. THEY STILL ARE ABLE TO PUT ALL OF THIS TOGETHER AND PUT TOGETHER A VERY PROFESSIONAL BUDGET. THIS ISN'T JUST SLAPDASH.
THEY'VE REALLY GONE THROUGH BY PROGRAM, BY FUND.
AND AND OBVIOUSLY, BECAUSE EVERYTHING IS GOING ON, SOME FUNDS ARE TAKING A LOT MORE ANALYSIS AND DETAIL THAN BEFORE.
CHILD DEVELOPMENT AND NUTRITION SERVICES, TOO.
I KNOW WE HAVE REALLY TALKED ABOUT THE OTHER FUNDS ON NUTRITION SERVICES IS GOING TO RUN A DEFICIT THIS YEAR BECAUSE OF OUR.
AND THEY THEY HAVE ENOUGH ON BALANCE THAT THEY CAN ABSORB THE WHOLE DEFICIT THAT THEY ARE PROJECTING FOR THIS YEAR.
AND THEN WE'RE GOING TO KEEP WORKING WITH THEM FOR IT NEXT YEAR.
AND HOPEFULLY THE FEDERAL GOVERNMENT'S GOING TO KEEP FUNDING US AT THAT LEVEL SO WE CAN CONTINUE TO FEED BECAUSE, AS YOU KNOW, WE ARE FEEDING ALL SUMMER LONG.
THAT'S REALLY IMPORTANT. SO IF I HAVEN'T CONFUSION, IF YOU ASK ME QUESTIONS AT WILL.
WELL, WE'LL GO FROM THERE. I DO.
I DO. THANK YOU FOR YOUR ATTENTION.
I DO HAVE A QUESTION. THEN I HAVE A COMMENT.
THE ONE QUESTION IS, I KNOW THAT MAINTENANCE IS SOMETHING THAT CAN ALSO EAT UP OUR BUDGET. NO, I WAS JUST WONDERING, HAS THERE BEEN A DECISION ABOUT GIVING US MORE FLEXIBILITY REGARDING ANY MAINTENANCE REQUIREMENTS OR SOMETHING LIKE THAT? SO. GREAT QUESTION.
NOW, IN THE BUDGET, AT LEAST FROM EVERYTHING WE'VE SEEN SO FAR, WE HAVE NOT RECEIVED THAT FLEXIBILITY TO CUT THE THREE PERCENT SPENDING.
SO WE'RE GOING TO TRY OUR BEST TO MAKE THE THREE THREE PERCENT THAT USUALLY INVOLVES SOME PROJECTS. BUT TALKING TO ROB THIS MORNING, HE'S HE'S GOT SOME IDEAS.
SO WE'RE GOING TO WE'RE GONNA SEE WHAT WE CAN DO TO TO MAKE THAT HAPPEN FOR THE RICHMOND PYROMANIACS. AND I GUESS THE COMMENT THERE'S A LOT OF INFORMATION HERE, AND I KNOW WE GET A LOT MORE INFORMATION AS WELL.
JUST PERIODICALLY, THE WHOLE TEAM HERE HAS DONE A GREAT JOB.
AND THANK YOU. I APPRECIATE SO MUCH THE RAINY DAY FUND WE HAVE, BECAUSE AS WE KNOW, SOMETIMES IT RAINS. AND, YOU KNOW, HAVING A RAINY DAY FUND FOR WHEN EMERGENCIES HAPPEN REALLY GIVES US A LOT OF FLEXIBILITY.
AND I APPRECIATE THE DUE DILIGENCE YOU PUT FORTH TO GIVE US FLEXIBILITY.
IT MAKES SOME OF OUR CHOICES LESS DIFFICULT.
THAT'S A LOT OF YOU WILL BE FOR ME.
REALLY. ARE SAYING WE NEED TO HAVE THAT HAVE THAT DOLLARS.
THIS DISTRICT HAS A HIGHER FUND BALANCE THAN THE OTHER DISTRICTS I WORKED IN AND I REALLY APPLAUD THE BOARD MEMBERS AND THE DISTRICT ADMINISTRATION FOR SAYING, YOU KNOW, WE WANT TO BE REALLY WE REALLY, REALLY WANT TO BE CAREFUL BECAUSE IT DOES GIVE US FLEXIBILITY.
AND YOU'RE RIGHT, I WAS JUST SAYING TO CARL THIS MORNING, YOU KNOW, WHEN ALL WHEN THEY FIRST CAME OUT IN MAY.
YOU KNOW WHAT? OH, WE'RE GONNA HAVE IT.
WE'RE GONNA HAVE THESE EIGHT PERCENT CUTS.
A LOT OF DISTRICTS IMMEDIATELY WENT TO WE'RE GONNA START LAYING PEOPLE OFF.
WE'RE GONNA GIVE NOTICES, WHICH JUST FREAKS PEOPLE OUT.
AND WE'RE ABLE TO SAY AND I THINK CARL SAYING, NO, IT'S SLOW AND YOU GUYS TOO.
LET'S NOT PANIC ANYBODY, BECAUSE WE DO HAVE THAT MONEY GIVES US THE FLEXIBILITY.
AND I THINK THAT THE STAFF PROBABLY APPRECIATES THAT AS WELL.
AND SOMETIMES PEOPLE DON'T SEE THE BENEFIT OF THESE COST CUTTING MEASURES UNTIL THERE'S AN EMERGENCY. SO I'M JUST VERY GRATEFUL THAT AS A BOARD MEMBER, WE'RE NOT PUT IN VERY DIFFICULT SITUATION BECAUSE OF JUST BASIC MATH.
AND THANK YOU FOR YOUR DECISION.
IT WAS OUR. YOUR PREDECESSOR ANN SPARKS THAT SET US DOWN THE CORRECT COURSE OF KEEPING THAT LARGE SAVINGS ACCOUNT.
BUT THIS GETS ME THINKING ABOUT THE ONGOING AUDIT PROCESS THAT WE ALWAYS HAVE GOING ON.
HOW IS THAT GONNA HAPPEN THIS YEAR? BECAUSE OF THE.
IN MY MEMORY, THEY COME IN AND THEY LOOK AT THE BOOKS AND AND THEN FIGURED OUT HOW TO ADDRESS. YEAH. THE AUDITORS ARE REALLY WITH IT.
THEY HAVE ACTUALLY COME AND DONE THEIR IN OUR HOMEWORK THAT THEY DID THAT.
I WOULD SAY THEY VIRTUALLY CAME.
I MEAN THEY I THINK THEY CAME A COUPLE DAYS BEFORE THE SHUTDOWN, BUT THEY'VE ALSO YOU KNOW, THEY ALMOST EVERYTHING WE HAVE IS PAPERLESS NOW, LIKE BACK IN THE DAY.
A MILLION YEARS AGO WHEN I WAS AN AUDITOR.
YEAH. WE ACTUALLY CAME AND GOTTEN THE FILE CABINET AND LOOKED AT THE INVOICES AND STUFF.
SO EVERYTHING WE HAVE NOW IS SCANNED INTO THE SYSTEM.
[00:30:02]
SO IT'S VERY EASY FOR THEM TO PULL THEIR SAMPLE AND THEY CAN LOOK AT EVERYTHING ONLINE OR OR THE LATEST SCAN, YOU KNOW, SCAN IT FOR THEM OR SEND JUST E-MAIL TO THEM BECAUSE THEY ALREADY HAVE ALL THE INFORMATION.SO, YEAH, THEY THEY SO EXPECT TO RUN THE AUDIT AS USUAL.
AND WE WE WILL BE READY FOR THAT.
VERY GOOD THEN. CAN YOU REMIND ME HOW MUCH THE UTILITIES SAVINGS WERE.
IT WAS THREE HUNDRED THIRTY TWO THOUSAND AS OF.
SO NOT FOR NORMALLY FOR THE WHOLE YEAR.
SO WE WERE ABLE TO REDUCE THAT BUDGET BY THE THREE HUNDRED THIRTY TWO THOUSAND.
BECAUSE WE'VE USED THAT MUCH LESS ELECTRICITY, IT'S MOSTLY ELECTRICITY.
AND I THINK THERE'S SOME WATER SAVINGS, A LITTLE GAS SAVINGS, TOO.
AND SO GOING INTO NEXT YEAR, WE'LL STILL HAVE WE STILL HAVE THE 1.5.
JULY IN JUNE. PROBABLY WE WILL HAVE SOME.
BUT WHEN SONYA DID THAT BUDGET, SHE WENT AHEAD AND PUT THE WHOLE 1.5 MILLION IN THERE.
BUT YEAH, WE WE SHOULD HAVE IN JULY AND AUGUST.
AND YOU CAN VARY SO MUCH DEPENDING ON HOW HOT IT IS.
YES. THAT'S THE MAJOR PART OF THAT ELECTRICAL BILLS IS THE AIR CONDITIONING.
BUT YEAH, SINCE THERE IS NOTHING GOING ON, ESPECIALLY SUMMER SCHOOL.
RIGHT. NOTHING. NOTHING GONNA GO ON THERE.
SO SHOULD BE SOME MORE SAVINGS.
WELL I KNOW WE ONLY SEE THE TIP OF THE ICEBERG WITH YOUR PRESENTATION HERE, SO THANKS TO YOU ALL. ALTHOUGH TONS AND TONS OF HOURS OF WORK YOUR STAFF HAS PUT IN.
TELL THEM THANK YOU. YEAH. YOU'RE WELCOME.
OTHER QUESTIONS. OKAY. YOU WE HAVE A MOTION TO CLOSE THE HEARING.
WE ADOPT 2020 2021 BUDGET FOR ALL FUNDS.
[2. Adopt 2020-2021 Budgets, All Funds]
WE HAVE A MOTION.OPPOSED? WE HAVE NO REQUEST TO SPEAK ON NON AGENDA ITEMS. OUR NEXT REGULAR BOARD MEETING WILL BE ON JULY 1ST, 2020.
[15. FUTURE MEETING DATES]
AT 10 A.M., THE MEETING WILL BE BROADCAST LIVE ON THE INTERNET.AND WE ARE ADJOURNED AT 12:10.
* This transcript was compiled from uncorrected Closed Captioning.