[00:00:02]
>> GOOD EVENING, EVERYONE. I'LL CALL
[1. 5:30 P.M. - CALL TO ORDER]
THIS BUDGET WORKSHOP OF THE GRAND PERY INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES TO ORDER.THE TIME IS 5:32 ON THURSDAY, AUGUST OF 14, 2025.
ALL BOARD MEMBERS ARE PRESENT WITH THE EXCEPTION OF TRUSTEE DAVID ESPINOSA.
DR. THILO, HAS THIS MEETING BEEN POSTED IN A LAWFUL AND TIMELY MANNER?
>> OKAY. THANK YOU. WE WILL NOW PROCEED TO OUR BUDGET WORKSHOP,
[2. BUDGET WORKSHOP]
ITEM 2A, INFORMATION AND DISCUSSION ITEMS. NUMBER 1 IS OUR 2025-2026 BUDGET PLANNING UPDATE.OUR PRESENTERS ARE DR. THURSTON LAMB, DEPUTY SUPERINTENDENT OF OPERATIONS.
>> GOOD EVENING. MADAM PRESIDENT, BOARD TRUSTEES AND DR. T. WE ARE HERE TO START A CONVERSATION ABOUT OUR BUDGET WORKSHOP.
MISS BIRD AND HER TEAM HAVE SPENT QUITE A BIT OF TIME CRUNCHING NUMBERS SO I BELIEVE WE'LL NEED THIS ENTIRE TIME TO COVER ALL INFORMATION, I'LL GO AHEAD AND TURN IT OVER TO MISS BIRD.
>> WHEN YOU ALL SPEAK, CAN YOU SPEAK A LITTLE BIT LOUDER?
>> OKAY. [OVERLAPPING] THAT BETTER?
>>YES? OKAY. GOOD EVENING, EVERYONE.
TONIGHT, I WANT US TO LOOK AT SOME OF THE KEY ELEMENTS DRIVING OUR 2025-2026 BUDGET.
GRAND PRAIRIE, ALONG WITH MANY OTHER DISTRICTS IN THE STATE, ARE FACING A HARD YEAR AHEAD FINANCIALLY.
FOR GRAND PRAIRIE, YOU'LL SEE THROUGHOUT THIS PRESENTATION, WE'RE FACING DECLINING RESIDENTIAL PROPERTY VALUES, INCREASED HOMESTEAD EXEMPTIONS, DECLINING ENROLLMENT, AND RISING COST OVERALL THAT IMPACT OUR OPERATIONS AND OUR ABILITY TO SERVE OUR STUDENTS.
I'M GOING TO TOUCH ON SEVERAL THINGS THAT YOU'RE PROBABLY USED TO HEARING ABOUT WHENEVER YOU TALK ABOUT THE BUDGET EACH YEAR.
BUT I ALSO WANT TO INTRODUCE A NEW IDEA TONIGHT AND LOOK AT HOW THAT COULD POTENTIALLY HELP US OFFSET SOME OF OUR BUDGET SHORTFALLS.
BEFORE WE MOVE INTO THAT, I WANT US TO LOOK AT OUR CURRENT TAX RATE AND SEE WHERE WE ARE RIGHT NOW.
YOU PROBABLY KNOW THE TAX RATE IS MADE UP OF TWO DIFFERENT COMPONENTS, THE M&O RATE AND THE INS RATE.
THE M&O PART OF THE TAX RATE IT FUNDS OUR GENERAL FUND BUDGET, AND ALSO OUR DAY TO DAY OPERATIONS.
IT PAYS FOR SALARIES, CLASSROOM SUPPLIES, UTILITIES, SO FORTH, AND SO ON.
THE TAXES WE COLLECT FROM THE I&S TAX RATE.
IT PAYS OUR BONDS OFF THAT THE VOTERS APPROVED IN PREVIOUS YEARS.
OKAY. LET'S LOOK AT THE 2024 TOTAL TAX RATE.
YOU'LL SEE UPON THIS SLIDE, THE 2024 TOTAL TAX RATE WAS 1.0577.
THE M&O PORTION OF THE TAX RATE WAS 0.7552, AND THE INS PORTION OF THE TAX RATE WAS 0.3025.
I ALSO WANT US TO GO BACK AND LOOK AT THE DISTRICT'S TAX RATE OVER THE PAST 5-7 YEARS TO SEE HOW IT HAS TRENDED.
YOU'LL NOTICE ON THAT VISUAL IN 2019-2020, OUR TAX RATE BEGAN TO DECLINE, AND EVERY YEAR SINCE THEN, IT HAS BEEN GRADUALLY DECLINING MORE AND MORE.
IN 2019-2020, THAT'S THE YEAR THAT THE STATE STARTED COMPRESSING SCHOOL DISTRICT TAX RATES TO OFFSET RISING PROPERTY VALUES FOR TAXPAYERS.
HOWEVER, I WANT YOU TO SEE SINCE 2019, OUR TAX RATE HAS GONE DOWN BY ALMOST $0.54, 0.5373.
NOW I WANT US TO LOOK AT OUR 2025 TAX RATE, AND WE'RE GOING TO ASSUME RIGHT NOW, WE'RE NOT LOOKING AT ANY OF THE SPECIAL PROVISIONS OR THINGS THAT I MENTIONED EARLIER.
I JUST WANT TO LOOK AT WHAT OUR 2025 TAX RATE WOULD BE USUALLY IF WE JUST CALCULATED AS WE HAVE IN PREVIOUS YEARS.
THERE'S A LOT OF DIFFERENT LINGO.
WHENEVER YOU HEAR SCHOOL FINANCE, PEOPLE WILL TALK ABOUT THE TAX RATE.
YOU HAVE GOLDEN PENNIES, COPPER PENNIES, MAXIMUM COMPRESSED RATES, NO NEW REVENUE RATES, VOTER APPROVAL RATES.
[00:05:01]
I DON'T WANT US TO GET BOGGED DOWN IN ALL OF THAT LINGO, I'M GOING TO TRY TO SIMPLIFY AND LOOK AT AT A VERY HIGH LEVEL.OKAY. LOOKING AT THE 2025 TAX RATE, WHAT IT WOULD BE BEFORE ADDING ANYTHING ELSE INTO THE MIX? IT WOULD BE 1.03099, JUST OVER $1.03.
THAT WOULD BE MADE UP OF THE M&O RATE 0.7552 AND I&S RATE, 0.2758.
THAT ACTUALLY EXTENDS OUT SIX DECIMAL PLACES, BUT I'M ROUNDING JUST FOR SIMPLICITY.
NOW, LET'S COMPARE THAT TO OUR 2024 TAX RATE THAT WE TALKED ABOUT EARLIER, THE 1.0577.
YOU WILL SEE THERE'S ALMOST A THREE CENT DECREASE IN THE TOTAL TAX RATE BETWEEN 2024 AND 2025 AS IF IT WAS BUSINESS AS USUAL THIS YEAR.
THAT ENTIRE THREE CENT DECREASE IS COMING FROM THE INS SIDE OF THE TAX RATE.
OKAY. WITHOUT CONSIDERING ANY OF THE PROVISIONS, THAT WOULD LOWER THE TOTAL TAX RATE BY THREE CENTS.
WE CALCULATE OUR DEBT RATE USING THE COMPTROLLER'S TAX RATE CALCULATION WORKSHEETS, AND THAT LOOKS AT OUR POTENTIAL TAX COLLECTIONS AS WELL AS OUR TAXABLE VALUES TO FIGURE WHAT RATE WE NEED TO PAY OUR BONDED DEBT.
OKAY NOW, LET'S BACK UP AND TALK ABOUT THAT SPECIAL PROVISION OR THAT NEW IDEA THAT I MENTIONED EARLIER.
THERE IS AN EXCEPTION IN THE TAX CODE THAT ALLOWS SCHOOL DISTRICTS TO TEMPORARILY INCREASE THEIR TAX RATE WITHOUT HOLDING A TAX RATE ELECTION FOR ONE YEAR.
THE ADDITIONAL PENNIES THAT YOU CAN LEVY IN THAT ONE YEAR ARE CALLED DISASTER PENNIES.
THE EXCEPTION APPLIES TO DISTRICTS LOCATED IN COUNTIES THAT WERE INCLUDED IN THE GOVERNOR'S DISASTER PROCLAMATION.
ANY PROCLAMATION HE HAD ISSUED IN THE PAST TWO YEARS AND THE COUNTY WAS INCLUDED, THEN THIS WOULD APPLY TO US.
DALLAS COUNTY WAS INCLUDED IN A SEVERE WEATHER PROCLAMATION THAT WAS ISSUED BY GOVERNOR ABBOTT IN APRIL 2024.
WITH THAT BEING SAID, GRAND PRAIRIE COULD TEMPORARILY INCREASE ITS TAX RATE BY 0.0317 DISASTER PENNIES.
NOW LET'S LOOK AT THE 2025 RATE WITH THE DISASTER PENNIES.
FIRST, WE WOULD START AND WE WOULD TAKE THE PREVIOUS 2025 RATE THAT I MENTIONED, THE 1.03099, AND THEN WE WOULD ADD 0.0317.
THAT WOULD BRING OUR TOTAL TAX RATE WITH DISASTER PENNIES TO 1.06269 FOR ONE YEAR TEMPORARILY WITHOUT HOLDING A TAX RATE ELECTION.
THE INCREASE WOULD BE ON THE M&O SIDE OF THE TAX RATE.
INSTEAD OF 0.7552 THAT IT WOULD BE USUALLY, WE WOULD INCREASE IT TO 0.7869.
HOW DID WE ARRIVE AT 0.0317 PENNIES? IN A NUTSHELL, DISTRICTS HAVE THE ABILITY TO LEVY 17 WHAT THEY CALL ENRICHMENT PENNIES, OVER THE RATE THAT TA CALCULATES FOR YOU, WHICH IS CALLED YOUR MAXIMUM COMPRESSED RATE.
GRAND PRAIRIE HAS ALREADY USED ALMOST 14 OF THOSE PENNIES.
ACTUALLY, IT'S 0.1383, SO THAT LEAVES 0.037 PENNIES AVAILABLE TO LEVY AS DISASTER PENNIES.
LET'S COMPARE THE 2025 TAX RATE WITH DISASTER PENNIES TO THE 2024 TAX RATE.
THE 2025 TAX RATE WILL BE 1.06269 IN COMPARISON TO THE 2024 TAX RATE OF 1.0577.
THAT'S A HALF OF A CENT OF AN INCREASE ON THE TAX RATE.
[00:10:06]
COMPARING THE 2025 RATE WITH DISASTER PENNIES TO THE 2025 RATE WITHOUT DISASTER PENNIES, THAT'S THE STRAIGHT INCREASE OF 0.0317.WITHOUT ANY OTHER OUTSIDE FACTORS, I WANT US TO LOOK AT A RESIDENCE THAT HAD A TAXABLE VALUE OF $100,000 IN TAX YEAR 2024, AND THEN I ALSO WANT TO LOOK AT IT HAVING $100,000 VALUE IN 2025.
IF WE ADOPTED THE 2025 RATE WITHOUT DISASTER PENNIES, A TAXPAYER WOULD PAY $26.80 LESS THAN THEY DID IN 2024.
IF WE ADOPTED THE RATE WITH DISASTER PENNIES, THE TAXPAYER WOULD PAY AN ADDITIONAL $4.99 THAN THEY DID IN 2024 FOR THE YEAR.
I'VE INCLUDED A LITTLE VISUAL SO YOU CAN SEE THAT, DO WE HAVE ANY QUESTIONS RIGHT NOW?, I THINK IT IS A GOOD SPOT TO STOP AND TALK ABOUT THE DISASTER PENNIES?
>> SHE WAS ASKING ME A QUESTION BECAUSE IT'S FUNNY BECAUSE NO PROPERTY IN GRAND PRAIRIE THAT ANYONE LIVES IN IS $100,000.
IT'S ALL ABOVE THAT, WHILE I SEE WHAT YOU'RE DOING BECAUSE IT MAKES THE MATH EASY, THE INCREASES THAT THE TAXPAYERS WILL FEEL IS GOING TO BE SUBSTANTIALLY MORE AS I WAS EXPLAINING TO HER, IF YOU KNOW YOUR TAX VALUE, IT'S THIS TIMES EVERY HUNDRED THOUSAND DOLLAR VALUATION SO THAT SHE COULD GET A BETTER IDEA OF THE TRUE FIGURE OF WHAT IT WOULD BE FOR OUR COMMUNITY.
>>. IF YOU HAVE A $300,000 HOME AND WE ADOPTED THE DISASTER PENNIES, YOU WOULD GO UP $12-$15 IN YOUR TAXES OVER OVER WHAT YOU PAID IN 2024.
>> THE 4.99, IF YOU TRIPLE THE $100,000 VALUE.
>> LET ME PAUSE FOR JUST A SECOND.
I'VE BEEN WORKING WITH CONSULTATION WITH CAPITAL MARKETS WITH RBC.
THEY'RE HERE TO PROVIDE SOME SUPPORT WITH US AS WELL AS WE'RE GUIDING THROUGH THIS. THIS IS THEIR BUSINESS.
THIS IS THE WORK THAT THEY DO AND I'VE HAD THE PRIVILEGE OF WORKING WITH CLARENCE BEFORE IN THE PAST.
MR. GREER AND MR. BOB HENDERSON ARE HERE IN THE ROOM.
THAT COULD PROVIDE US SOME GUIDANCE BECAUSE WE'RE DIVING INTO THIS.
THIS IS ONLY ONE STRATEGY THAT WE HAVE THAT WE'RE PROPOSING FOR CONSIDERATIONS.
BUT IT'S A STRATEGY THAT HAS BEEN PUT IN PLACE OUT THERE.
MADAM PRESIDENT, IF YOU WOULD MIND, IF I CAN HAVE MR. GREER, MR. HENDERSON STEP UP TO WIDE SOME CLARITY TO THIS.
>> YES. THAT IS OKAY FOR THE DISASTER PENNIES.
THEY KNOW THE INS AND OUTS MUCH BETTER THAN I DO. I WOULD THINK.
>> WE CAN CALL THEM UP IN JUST A SECOND.
I WANT HER TO GO AHEAD AND FINISH WITH THE TAXPAYER IMPACT AND THEN THE IMPACT ON REVENUE AS WELL.
>> OKAY. NO MORE QUESTIONS RIGHT NOW.
OKAY. THE NEXT SLIDE, IT'S A LOT GOING ON ON IT.
I'M GOING TO TRY TO SUMMARIZE IT, AND BASICALLY, WHAT I'M DOING HERE IS COMPARING THE GENERAL FUND REVENUE WITH DISASTER PENNIES, AND THEN GENERAL FUND REVENUE WITHOUT DISASTER PENNIES.
THE DISASTER PENNIES ACTUALLY IMPACT NOT JUST OUR LOCAL REVENUE, IT ALSO IMPACTS OUR STATE FUNDING, AND YOU'LL SEE IN THIS COMPARISON THAT IF WE WERE TO ADOPT A TAX RATE WITH DISASTER PENNIES, WE WOULD GAIN $5.14 MILLION MORE REVENUE IN THE GENERAL FUND.
3.99 MILLION OF THAT WOULD BE RELATED TO TAX COLLECTIONS, OUR LOCAL REVENUE.
1.14 MILLION OF THAT WOULD BE THE INCREASE IN OUR STATE FUNDING.
OUR TOTAL REVENUE WOULD GO FROM 293-298.4 MILLION.
ARE THERE ANY QUESTIONS OVER THAT?
>> THE 1.143139 NUMBER FROM THE STATE FUNDING, IS THAT GUARANTEED?
>> OBVIOUSLY, A BUDGET IS ALWAYS JUST ESTIMATES.
THAT 1.14 NUMBER IS NOT JUST IMPACTED BY THE TAX RATE,
[00:15:01]
IT'S ALSO IMPACTED BY OUR ADA AND OUR T VALUES FROM THE [INAUDIBLE].THE REASON IT IMPACTS BOTH STATE AND LOCAL IS THE FORMULA THAT THE STATE USES, THEY WORK IN TANDEM.
THEY WANT TO KEEP IT CLOSE TO 50-50 DISTRIBUTION BETWEEN WHAT THE STATE'S PICKING UP AND WHAT THE DISTRICT IS PICKING UP.
I DON'T WANT TO SAY IT'S GUARANTEED.
BUT IF OUR ADA ENDED THE YEAR WITH THE NUMBERS THAT WE USED TO PROJECT THAT 1.4 MILLION, THEN YES.
IF OUR ADA WAS MORE THAN WHAT WE ESTIMATED, THEN THAT WOULD IMPACT THAT STATE FUNDING NUMBER AS WELL.
>> I UNDERSTAND WHAT YOU'RE SAYING.
THE 3.99 THAT YOU HAVE PROJECTED ON HERE TO BE A LOCAL REVENUE WITH THE DISASTER PENNIES.
CAN WE GUARANTEE THE STATE DOESN'T DECREASE OUR FUNDING BY THAT AMOUNT BECAUSE NOW WE'RE GETTING IT WE'RE INCREASING THE TAX SIDE OF IT, THEY FEEL LIKE THEY NEED TO DECREASE THE STATE SIDE AMOUNT?
>> THEY WILL NOT DECREASE THE STATE SIDE.
WE RAN BOTH OF THESE SCENARIOS THROUGH THE STATE FUNDING TEMPLATE.
I'M NOT AWARE OF ANY LEGISLATION OR CHANGES OTHER THAN SOME THINGS WE'LL LOOK AT LATER, LIKE THE TEACHER RETENTION ALLOTMENT, SOME OF THOSE THINGS.
I'M NOT AWARE OF ANY OTHER CHANGES THAT WOULD IMPACT OUR STATE FUNDING FOR THEM TO REDUCE IT BECAUSE OUR TAX COLLECTIONS INCREASED.
>> I HEAR WHAT YOU'RE SAYING. YOU DON'T THINK THEY WILL, BUT CAN YOU GUARANTEE THEY WON'T?
>> THEY WILL NOT DO THIS. THIS IS NOT A NEW STRATEGY.
WHEN YOU SEE IT UP AND DOWN THE COASTLINE WITH REGARDS TO THE SCHOOL DISTRICTS, MATTER OF FACT, I SPOKE WITH ONE SUPERINTENDENT THAT WAS IN DUNCANVILLE WHO UTILIZED THIS AS A STRATEGY AND IS USING IT DOWN TO THE HOUSTON AREA NOW, THEY DON'T SEE ANY DECLINE.
TYPICALLY YOU'LL FIND IT IN HURRICANE AREAS IN THE STATE.
>> YEAH. THEY HAVE NOT HAD ANYTHING, BUT BECAUSE THE GOVERNOR DID, IN DALLAS COUNTY.
I DID SPEAK WITH SOME FOLKS HERE THAT ARE LOCALLY.
WE'RE NOT AWARE OF THIS AS AN AVENUE AND THEY'RE EXPLORING IT AS WELL.
MOSTLY IT'S IN THE EAST TEXAS OR SOUTH TEXAS AREA THAT YOU'LL SEE IT.
TYPICALLY, I'M NOT GOING TO SAY IT'S GOING TO BE ABSOLUTE THAT THEY WILL NEVER DO THAT, BUT THE LIKELIHOOD OF THAT HAPPENING IS VERY RARE BECAUSE IT'S BEEN UTILIZED FOR DECADES NOW IN THIS LOWER PART.
>> WHICH BRING UP A GOOD POINT.
I'M GLAD THAT YOU DID THAT BECAUSE THIS IS ANOTHER QUESTION I HAVE AND I DON'T KNOW IF THIS IS THE TIME TO ADDRESS IT NOW OR WE CAN ADDRESS IT LATER, AND MAYBE SOME CLARIFICATION.
I'M TRYING TO MAKE SURE I'M TRACKING HERE.
>> THE GOVERNOR DECLARED A DISASTER DECLARATION FOR THE, IT WAS LIKE STRAIGHT LINE WINDS, IF I REMEMBER, MAYBE SOME LOTS OF RAIN LIGHTNING HILL, THOSE THINGS, MAYBE A FEW TORNADOES FOR THE COUNTY OF DALLAS.
DO WE IN GRAND PRAIRIE HAVE HARD COST EXPENSES BECAUSE OF THAT DISASTER IN APRIL OF 2024?
>> I DON'T KNOW THE ANSWER TO THAT QUESTION.
>> A NUMBER OF THINGS IN ITEMS THAT PLAY INTO THAT.
YOU LOOK AT INSURANCE RATES HAVE GONE UP SINCE THEN.
THERE'S SOME SUBSTANTIAL DIFFERENCES WHEN IT COMES TO IT, EVEN WITH LITTLE OR NO DAMAGES THAT ARE THERE.
EVEN IF WE DID NOT SUSTAIN THE DAMAGES TO THE DEGREE THAT SOME OF OUR PARTNER SCHOOL DISTRICTS MAY HAVE, WE SHARE THE EXPENSE AND WE SEE IT IN OUR HOMES, I JUST PUT A NEW ROOF ON MY HOUSE AND I HAVE NO REASON TO BELIEVE WHY DID I PAY SO MUCH FOR MY INSURANCE DEDUCTIBLE? ITS INSURANCES ARE ADJUSTING BASED ON THAT.
IT DOESN'T NECESSARILY NEED TO BE HARD COST DAMAGES, IT'S ALSO THE INFLUX OF WHAT HAPPENS WITH THOSE DAMAGES THAT WE DO HAVE [OVERLAPPING].
>> I UNDERSTAND THAT. BECAUSE I THINK THERE'S A LOT OF DISTRICTS THAT UTILIZE THIS IN A WAY IN WHICH THEY'VE HAD SCHOOLS DESTROYED BECAUSE A TORNADO RIPPED THE SCHOOL IN HALF, OR THEY HAD PIPES BURST.
TO ME, IT MAKES SENSE WHEN WE HAD THE FREEZE HERE.
REMEMBER AND PIPES BURST AND WE HAD FLOODING IN SCHOOLS, THAT MAKES SENSE.
BECAUSE I CAN GO, WE HAD THIS MUCH MONEY COME OUT AND NOW THE STATE'S ALLOWING US TO USE THESE EXTRA PENNIES TO GAIN THAT MONEY BACK BECAUSE OF EMERGENCY SITUATION.
WHAT I'M HAVING A HARD TIME STRUGGLING WITH INTERNALLY, HONESTLY IS WHERE DID WE SEE DISASTER? WHERE DID WE HAVE MONEY BECAUSE OF THIS DISASTER GO OUT? BECAUSE YOU REMEMBER, THE SEVEN OF US HAVE TO EXPLAIN IT TO THE PEOPLE OUT THERE RIGHT? I WANT TO MAKE SURE THAT I CAN JUSTIFY IT AND RIGHT NOW I CAN'T.
BECAUSE I'M TRYING TO SAY, HOW WERE WE SPECIFICALLY AFFECTED? THE ONLY THING THAT I COULD COME UP WITH WAS WE MOVED GRADUATION.
[00:20:01]
WHEN WE HAD TO MOVE IT FROM VERIZON OVER TO DALLAS BECAUSE ELECTRICITY WENT OUT AND I DON'T KNOW, I DON'T THINK WE INCURRED A COST ON EITHER ONE OF THOSE THINGS, SOMEONE CAN PROVE ME WRONG ON THAT.BUT OUTSIDE OF THAT I JUST DON'T KNOW WHAT ELSE HAPPENED.
WHAT WE'RE BEING ASKED TO DO IS POTENTIALLY CONSIDER A PENNY OR THREE ON A DISASTER DECLARATION THAT DIDN'T NECESSARILY IMPACT US.
I UNDERSTAND THAT YOU'RE SAYING INSURANCE PREMIUMS WENT UP, THEY GO UP EVERY YEAR.
THAT'S WHY I'M TRYING TO JUST MAKE SURE I'M TRACKING BECAUSE I WILL BE HONEST, THIS IS A STRUGGLE FOR ME TO TRY AND JUSTIFY.
>> QUESTION 2, IS THAT LEGAL FOR US TO DO THAT?
>> YOU USE THAT MONEY IT MIGHT NOT BE FOR A DISASTER?
>> THE DEFINITION IS BROAD BECAUSE IT DEALS WITH STAFFING.
IT DEALS WITH, WHEN YOU GO THROUGH A DISASTER, IT'S BROAD, THE BRUSH IS BROAD AND IMPACTS THE DISTRICT IN A VARIETY OF WAYS.
THIS IS A STRATEGY THAT YOU CAN LOOK AT IT BECAUSE OF THE DISASTER THAT GOES FROM UTILITY USE, TO INSURANCES TO HARD FAST DAMAGES THAT HAVE OCCURRED, TO STAFFING ADJUSTMENTS THAT NEED TO BE HAPPENED BECAUSE OF THAT.
THERE'S A NUMBER OF VARIABLES.
THEY DON'T REALLY CONFOUND IT WITH A HARD FAST DEFINITION, BUT IT IS SOMETHING THAT THE COMMUNITY NEEDS TO BE BEHIND WHEN YOU GO AND YOU DO SOMETHING LIKE DISASTER PENNIES.
>> IF WE USE THESE PENNIES, BECAUSE YOU SAID THIS IS GOING TO TAKE US TO THAT 17 CENT LIMIT, RIGHT?
>> THERE'S NO MORE, THAT'S IT, RIGHT? IF WE TRULY DID HAVE A TRUE DISASTER WE'VE EXHAUSTED THESE PENNIES.
>> YOU CAN CLAIM THIS PROVISION AGAIN IT JUST CANNOT BE RELATED TO THE PROCLAMATION THAT YOU HAVE ALREADY?
>> IN A SUBSEQUENT. I SAW THAT.
BUT THEN MY NEXT QUESTION BECOMES, IS THE STATE LEGISLATOR CLOSING THIS LOOPHOLE IN THE NEXT SESSION?
>> I DON'T KNOW THE ANSWER TO THAT QUESTION.
>> NOT THAT I'M NOT AWARE OF. I DON'T THINK THEY'RE CLOSING THIS AT ALL SO.
>> FOR CLARIFICATION PURPOSES, YOU SAID THAT THE STATE ALLOWED 17 ENRICHMENT PENNIES?
>> WHEN [INAUDIBLE] ISD IS ALREADY AT 0.1383?
>> IF WE USE THE THREE THAT YOU GUYS ARE PROPOSING THEN THAT'LL MAX US OUT?
>> NEXT YEAR, THE RATE WOULD REVERT BACK TO THE LOWER RATE, OR YOU WOULD ONLY BE USING 0.1383 PENNIES IN THE FOLLOWING YEAR.
>> GOING BACK TO YOU STARTED THE PRESENTATION AND THIS LITTLE BIT OF CONVERSATION RIGHT HERE.
IF WE'VE ALREADY USED, WHEN WE ALREADY USED 16,
>> IF WE'VE ALREADY USED THAT, WHY WAS THAT NEVER CONSIDERED INTO THE BUDGET, OR THE TAX INCREASE, OR WHATEVER? IT'S JUST THESE LAST THREE PENNIES, YOU GOT TO REMEMBER.
I'M NOT A CPA SO LET'S PUT IT IN TERRY FORM.
>> THE 17 PENNIES WILL GET INTO THE GOLDEN PENNIES AND COPPER PENNIES.
THE FIRST FIVE PENNIES ARE GOLD PENNIES AND DISTRICTS CAN LEVY THAT WITHOUT A TAX RATE ELECTION.
ANY OTHER PENNIES ABOVE THAT, YOU HAVE TO HOLD A TAX RATE ELECTION AND YOUR VOTERS HAVE TO APPROVE THAT TAX RATE, WHICH APPARENTLY HAS HAPPENED PREVIOUSLY TO BRING YOU UP TO THE 0.1383.
>> BUT WE'VE NEVER THAT I CAN REMEMBER OR KNOW.
>> THAT I CAN REMEMBER OR KNOW, THE PENNIES WE HAVE ALREADY USED IS NEVER THAT I KNOW OF.
THAT WE'VE NEVER HAD TO INSTIGATE OR WE'VE NEVER HAD TO USE THAT TO INCREASE THE TAX.
>> THAT YOU PASSED THAT'S WHAT THAT WAS.
BECAUSE IT WENT TO THE VOTERS AND THE VOTERS SUPPORTED IT [OVERLAPPING]
>> YOU'VE NEVER DONE IT THIS WAY, YOU ARE CORRECT?
>> YES, I'M SORRY. A TRE IS A TAX RATE ELECTION SO THAT'S HOW YOU WOULD IT. [OVERLAPPING].
>> HOW MANY YEARS AGO WAS THAT?
>> IT WAS RIGHT BEFORE I GOT ON THE BOARD SO BACK IN 17, 18?
>> BEEN 2017 WITH THE CONSTRUCTION.
>> THE THREE LEGGED MILK SCHOOL, I REMEMBER WELL.
>> FOR THOSE FEES, ONCE TAXPAYERS HAVE APPROVED THAT THEY STAY AND PART OF YOUR TAX GRADE.
>> THAT'S WHAT I WAS GOING WITH, I GUESS IS WHAT EMILY WHERE I WAS GETTING CONFUSED, THOUGH.
>> THAT'S CORRECT. IS THERE ANY MORE DISCUSSION?
[00:25:02]
>> THE QUESTION THAT I HAVE IS, IF WE DO THIS, WE DO NOT HAVE TO GO TO THE TAXPAYERS FOR THIS INCREASE, IS THAT CORRECT?
>> UNDERSTAND THAT THE TAX RATE AND GOING BACK TO PAGE THREE OF YOUR PRESENTATION, TAX RATE IS AT FOR THE 24, 24 TOTAL TAX RATE WAS 1.05770.
WITH THIS MOVE THAT WE'RE LOOKING AT WOULD PUT IT UP A PENNY MORE FROM WHAT THAT IS SO THAT'S.
>> HALF OF THE ENTIRE PERCENT.
>> IT WOULD BUT WHEN YOU THINK ABOUT IT DIFFERENT, I'M GOING TO PLAY DEVIL'S ADVOCATE HERE BECAUSE I PAY TAXES.
KNOWING THAT IT COULD GO DOWN TO $1.03 IF WE DIDN'T USE THESE PENNIES THAT'S A BIGGER DIFFERENCE.
I GET THAT, IT'S A LITTLE BIT DIFFERENT THAN WHAT THEY, IT'S ONLY WHAT? HALF A CENT DIFFERENT FROM WHAT WE'RE PAYING NOW, BUT KNOWING THAT IT COULD GO DOWN BECAUSE WE'VE SHOWN THEM IT CAN GO DOWN THAT WIDENS THAT GAP AND INCREASES THAT AMOUNT PER 100,000.
>> THE RATIONALE, I JUST WANT TO MAKE SURE THIS IS JUST A STRATEGY BECAUSE WE HAVE A SIGNIFICANT DEFICIT.
THAT SIGNIFICANT DEFICIT WILL BE ADDRESSED THROUGH REVIEWS THAT WE'LL DISCUSS LATER IN THE PRESENTATION.
THIS IS JUST ONE STRATEGY THAT CAN HELP SUPPORT THE SCHOOL DISTRICT TO PROVIDE A STRATEGY IN MEETING THE NEEDS OF OUR STUDENTS AND OUR TEACHERS, BUT ADJUSTING IT AND GIVING ENOUGH TIME TO ADJUST IT.
THIS IS ONLY A YEAR THAT WE'LL ADJUST.
IT'S A HALF PERCENT AND REMEMBER LOWS IS CORRECT.
I LIVE IN GRAND PRAIRIE, I PAY THESE TAXES AS WELL.
WE DO NOT TAKE THIS LIGHTLY, BUT WE HAVE TO LOOK AT EVERY POSSIBLE STRATEGY.
THE BOARD CAN ELECT TO ENTERTAIN THIS, LOOK AT IT, SAY, NO, WE'RE NOT GOING TO DO THIS.
THIS IS FIVE MILLION DOLLARS THAT WE'RE NOT GOING TO TAKE ADVANTAGE OF.
WE'RE GOING TO GO AHEAD AND MOVE IT OFF TO THE SIDE AND THEN WE HAVE TO LOOK AT OTHER METHODS TO GAIN THE FIVE MILLION DOLLARS AS WELL AS THE REMAINING $15,000,000 THAT WE HAVE TO LOOK AT BECAUSE WE ARE GOING TO BE A PRETTY CLOSE TO $21,000,000 DEFICIT OR SO.
THIS IS JUST THE STRATEGY, JUST SOMETHING THAT I WANT TO MAKE.
IT'S POTABLE FOR OUR VOTERS AND FOR THE COMMUNITY TO SAY, THIS IS NOT A UNIQUE, THIS IS NOT SMOKE AND MIRRORS, THIS ISN'T A TOOL THAT WE'RE USING TO PROVIDE AND SAY, WE DON'T WANT TO BE TRANSPARENT.
THIS IS SOMETHING THAT EVEN OUR SISTER SCHOOLS HERE AROUND HERE.
I'VE TALKED TO THEM, I'VE JUST REACHED OUT TO THEM SAY, HAVE YOU GONE AFTER THESE PENNIES? THEY HAVEN'T.
THEY'RE NOW LOOKING AT THE STRATEGY TO SAY, HEY, I WANT TO TALK ABOUT THIS WITH MY BOARD.
I WANT TO SEE IF THIS IS A METHOD BECAUSE THE RELIEF IN REALITY IS, EVERY DISTRICT IN THE STATE OF TEXAS IS TO LOOK AT HOW ARE WE GOING TO GENERATE THIS? BECAUSE REVENUE WAS NOT PUT INTO FOR SCHOOL DISTRICTS TO OPERATE WITH WHAT WE HAVE.
MAJORITY OF OUR SCHOOL DISTRICTS IN THE METROPLEX ARE GOING TO BE ADOPTING A DEFICIT BUDGET, SIGNIFICANT DEFICIT BUDGETS.
ALL I WAS ASKED FOR, BREST MOFFITT, I APPRECIATE YOU.
THIS WAS A STRATEGY TO LOOK AT, JUST ENTERTAIN SOME INFORMATION ABOUT THIS AND SEE WHAT AND HOW THIS CAN BENEFIT THE PROCESS.
ALL I'M ASKING IS FOR US TO BE OPEN TO THE FULL DISCUSSION OF IT AND THEN YOU HAVE TIME TO MAKE A DECISION.
YOU CAN TALK TO CONSTITUENTS AND SEE WHAT IS THAT GOING TO BE THE IMPACT IN THE LONG RUN.
IT'S FIVE MILLION DOLLARS AND NOW WE ARE GOING TO LOOK AT $17,000,000 TO FIGURE OUT WHAT'S THE NEXT PHASE AS WE MOVE FORWARD.
WE'VE ENTERTAINED THIS CONVERSATION, THAT THE DECISION IS, WE'RE NOT GOING TO DO THIS, WE GO FORWARD THEN WE COME UP WITH ANOTHER STRATEGY.
THIS IS THE WILL OF THE BOARD.
THAT'S WHY I WANT TO MAKE SURE THAT WE PRESENT IT.
BUT ALL I'M ASKING IS FOR THE BOARD TO BE OPEN TO THIS OPPORTUNITY OF LOOKING AT IT FULLY AND KNOW THAT IT IS SOMETHING NEW.
TERRY BROOKS, YOU'RE CORRECT, THIS IS SOMETHING WE'VE NEVER DONE HERE.
WE COULD HAVE DONE IT DURING THE ICE FREEZE BUT WE DIDN'T DO IT HERE.
BUT I WILL TELL YOU I DID TAKE ADVANTAGE OF THIS AS A FUNDING MECHANISM IN EAST TEXAS AND THIS IS SOMETHING THAT'S WHY I'M AWARE OF IT AND OUR COUNTERPARTS IN SOME OF THE AREAS I HAVE ALSO UTILIZED IT AS WELL.
WITH THAT, I'LL YIELD BACK TO.
KNOWING THAT THIS IS JUST A SCENARIO.
THIS IS NOTHING MORE THAN A SCENARIO AND THERE'S GOING TO BE SEVERAL, I'M ASSUMING.
GOING BACK TO MY ORIGINAL QUESTION OF TAKING ADVANTAGE OF THE MONIES AVAILABLE, IS THERE A SCENARIO, IS THERE A WAY TO STILL TAKE ADVANTAGE OF THE 1, 02, 3, WHATEVER PENNIES ARE LEFT ARE OUT THERE WITHOUT RAISING THE TAX RATE, ANY?
[00:30:06]
>> THERE IS ONE AND THAT IS YOU DON'T GO FOR THE FULL THREE PENNIES, YOU GO FOR THE TWO PENNIES.
IF YOU GO AFTER THE TWO PENNIES, THE TAX RATE BASICALLY STAYS ABOUT THE SAME.
IF I CAN, THIS IS A GREAT QUESTION.
CAN I ASK MR. HENDERSON TO STEP UP TO JUST CLARIFY THIS FOR US.
>> GO AHEAD AND COME UP. I JUST WANT TO KNOW, JUST BECAUSE OF THE BOND, THE OTHER 14 PENNIES THAT WE HAVE AND I DON'T KNOW THIS PART.
IF ONCE THOSE BONDS ARE PAID OFF, DO YOU RECOUP THOSE, JUST LIKE YOU RECOUP DISASTER?
>> WE RECALCULATE OUR DEBT RATE EVERY YEAR BASED ON OUR TAX COLLECTIONS AND TAXABLE VALUES.
AS WE PAY OFF OUR DEBT, THE RATE, YOU WILL SEE IT STARTS GOING DOWN.
>> BUT YOU RECOUP THOSE OTHER PENNIES BY THAT?
>> THE 17 PENNIES ONLY APPLY TO YOUR IMINO RATE.
>> MISS BIRD WAS GOING TO ANSWER MY QUESTION, NOW, GO AHEAD, MISS BIRD.
>> WELL, I WANTED TO JUMP FORWARD A LITTLE BIT AND LOOK AT PROPERTY VALUES.
BECAUSE WHEN YOU'RE TALKING ABOUT TAX RATE YOU CAN'T JUST LOOK AT THE RATE AND SAY, IT'S INCREASE OR DECREASE BECAUSE YOU ALSO HAVE TO LOOK AT THE PROPERTY VALUES.
I'M NOT SURE IF YOU'RE AWARE, BUT IN 25, 26, THE HOMESTEAD EXEMPTION FOR RESIDENTIAL TAXPAYERS INCREASED FROM 100,000-140,000.
LET ME BACK UP. IT HASN'T ACTUALLY HAPPENED BUT [OVERLAPPING]
>> IS IT 100-140, WENT FROM 40-140.
>> IN 23, 24 IT INCREASED FROM 40-100 AND FOR IN 25, 26 IT'S INCREASING FROM 100-140.
>> IN A SIMPLEST FORM, IF YOU LOOK AT IT LIKE THIS, LAST YEAR, IF A TAXPAYER HAD A HOME VALUED AT $140,000 THEY PAID TAX ON ONLY 40,000 BECAUSE THERE WAS A HOMESTEAD EXEMPTION OF 100,000.
LOOKING FORWARD TO 25, 26, YOU STILL HAVE THAT SAME HOME STILL VALUED AT 140,000 NOW, THE EXEMPTION IS 140,000 SO YOU'RE NOT PAYING ANY TAX AT ALL.
YOU HAVE TO CONSIDER BOTH WHAT YOUR VALUES HAVE DONE, AS WELL AS WHAT YOUR TAX RATE HAS DONE.
FOR 25, 26 IT WOULD BE GOOD TO NOTE THAT RESIDENTIAL VALUES IN THE DISTRICT ARE DOWN BY 16 PERCENT.
A HOME THAT WAS $100,000 LAST YEAR YOU CAN ASSUME WOULD YOU WOULD BE TAXED ON $84,000 IN 25, 26.
ALSO, NEW CONSTRUCTION IN THE DISTRICT IS DOWN BY 31 PERCENT.
WE DID HAVE A LITTLE BIT OF GROWTH IN COMMERCIAL VALUES AND BUSINESS PERSONAL PROPERTY, 8 PERCENT AND 10 PERCENT, BUT OVERALL WE SAW APPROXIMATELY A $250,000,000 DECLINE IN OUR VALUES SO WE'RE DOWN 2 PERCENT FROM LAST YEAR.
ARE THERE ANY QUESTIONS ABOUT THAT AND HOW THE VALUE AND THE TAX RATE OPERATE TOGETHER?
>> THANK YOU. THAT PUTS CLARITY BECAUSE WE WERE JUST TALKING ABOUT THE TAX RATE ON ONE SIDE, BUT THERE'S A LOT OF OTHER VARIABLES THAT PLAY TO THAT PERCENTAGE.
IF WE CAN HAVE MR. HENDERSON STEP UP FOR THAT.
>> THANK YOU. DR. [INAUDIBLE].
FOR THE RECORD, MY NAME IS ROBERT HENDERSON, I'M MANAGING DIRECTOR WITH RBC CAPITAL MARKETS WITH [INAUDIBLE] GREER, ALSO A MANAGING DIRECTOR OF RBC CAPITAL MARKETS.
I HAVE HAD THE HONOR AND THE PRIVILEGE OF WORKING WITH SCHOOL DISTRICTS IN THE STATE OF TEXAS AS WELL AS CITIES AND COUNTIES FOR 43 YEARS NOW.
I ALWAYS PAUSE WHEN I SAY THAT SO SOMEONE CAN SAY YOU DON'T LOOK THAT OLD.
>> THANK YOU. I HAVE HAD THE HONOR OF REPRESENTING THE TWO LARGEST SCHOOL DISTRICTS IN THE STATE, HOUSTON ISD AND DALLAS ISD, EITHER AS UNDERWRITER OR FINANCIAL ADVISOR.
I'VE ALSO WORKED WITH SANTA MARIA, ISD AND DOWN IN HADAGO COUNTY, WHICH IS THE SMALLEST POOREST SCHOOL DISTRICT IN THE STATE.
MY PARTNER AND I EXCLUSIVE OF MR.
[00:35:03]
GREER'S SCHOOL DISTRICT EXPERIENCE WE WORKED WITH ABOUT 50 SCHOOL DISTRICTS IN THE STATE.PEOPLE ASKED ME AFTER ALL THESE YEARS, DO I STILL ENJOY WHAT I DO AND I LOVE IT.
THIS CONVERSATION TONIGHT REALLY GETS TO WHY I LOVE IT.
MS. LILES HAS ASKED SOME GREAT QUESTIONS, MR. BROOKS HAS POINTED OUT SOME GOOD THINGS ON THE CPA'S SIDE.
I THINK THAT MISS BIRD HAS DONE A GOOD JOB OF BRINGING INTO THE CONVERSATION ALL THE DIFFERENT VARIABLES THAT COME INTO PLAY WHEN YOU SET THE TAX RATES AND YOU'RE LOOKING AT WHAT THE IMPACT IS ON YOUR VOTERS, WHICH, OF COURSE, IS THE NUMBER 1 CONCERN OF ALL THE ELECTED OFFICIALS, WHAT'S THE IMPACT ON THE VOTERS?
>> THIS, UNFORTUNATELY, FOR SOME, MAYBE MR. BROOKS AND SAY HE'S A ZPA, IS NOT AS EASY AS JUST SIMPLY THE NUMBERS, AND THIS IS WHY I LOVE THE BUSINESS.
THE PROBLEM THAT YOU AS A GOVERNMENTAL ENTITY HAVE, IS THAT YOU'VE GOT LEGISLATORS IN AUSTIN THAT ARE MANDATING ALL OF THESE THINGS, SOME OF WHICH ARE FUNDED, A LOT OF WHICH ARE NOT.
THEY'RE CHANGING THE LAWS WITH RESPECT TO PENNIES AND EXTRA PENNIES AND WHAT THE EXEMPTIONS ARE.
THE EXEMPTIONS THAT MISS BIRD POINTS OUT IS TREMENDOUS.
I HAD A CONVERSATION JUST EARLIER THIS WEEK WITH THE TREASURER AT DAVIS ISD.
SHE TOLD ME THAT THE INCREASE IN HOMESTEAD EXEMPTIONS HAS CAUSED 144,000 HOMES IN DALLAS ISD TO FALL COMPLETELY OFF OF TAX ROLLS.
THEY AREN'T GOING TO PAY ANY SCHOOL DISTRICT TAXES AT ALL AS A RESULT OF THIS.
WHAT WE HAVE TO DO AS SOMEONE THAT REPRESENTS GOVERNMENTAL ENTITIES IS BALANCE ALL THESE MOVING PARTS.
MS. LILES COMMENTS ARE NOT AT ALL UNREASONABLE.
THESE ARE TITLED DISASTER PENNIES.
WELL, WHERE'S THE DISASTER? DR. TRUJILLO ADDRESSED THAT IN BROADER TERMS, BUT HER POINT IS NOT UNREASONABLE.
BUT AS MS. BURTS SAYS, YOU'VE GOT TO TAKE ADVANTAGE OF ALL THESE DIFFERENT OPPORTUNITIES.
THE QUESTIONS THAT MR. BROOKS PUT TOGETHER HAS TO DO WITH THE 17TH CENTS.
BEFORE THE MEETING STARTED, MS. LILES ASKED HOW MANY OTHER DISTRICTS ARE THERE IN DALLAS COUNTY THAT ARE TAKING ADVANTAGE OF THESE DISASTER OPENINGS? WE DON'T HAVE THE DEFINITIVE ANSWER RIGHT NOW.
BUT AS MR. GREER AND I WERE DISCUSSING IT EARLIER, AND MS. BURTS STATED, YOU HAVE $0.17 THAT IS THE MAXIMUM THAT YOU COULD GO TO, AND THAT'S WHERE THE 3.17 COMES IN, THE DIFFERENCE BETWEEN YOUR 13.83 CENTS AND 17 CENTS.
SHE ALSO POINTED OUT CORRECTLY THAT THIS IS A ONE-TIME DEAL, THE DISASTER PENNIES.
IT ONLY AFFECTS THIS BUSINESS AREA.
AS DR. TRUJILLO POINTED OUT, THERE ARE A LOT OF SCHOOL DISTRICTS THAT DIDN'T EVEN KNOW THIS WAS AVAILABLE.
PART OF WHAT MR. GREER AND I ARE DOING IS WORKING WITH EDUCATIONAL CONSULTANTS TO MAKE SURE DISTRICTS UNDERSTAND THIS.
THERE ARE SOME DISTRICTS THAT CANNOT TAKE ADVANTAGE OF THIS AND YOU KNOW WHY THE REASON IS, MR. BROOKS?
>> THEY ARE IN A DISASTER COUNTY.
>> WELL, THEY'RE NOT IN A DISASTER COUNTY.
THAT'S CERTAINLY ONE REASON, BUT THE OTHER REASON IS THE DISTRICTS HAVE ALREADY VOTED THE FULL 17 CENTS THAT THEY'RE ALLOWED TO.
IF THEY'RE ALREADY AT THEIR 17 CENTS, THEY DON'T GET THE OPPORTUNITY THAT YOU HAVE.
A LOT OF SCHOOL DISTRICTS ARE LOOKING AT THESE DISASTER PENNIES IN COMBINATION WITH THE INCREASE AND HOMESTEAD EXEMPTIONS AS A TIME PLAY AS A MANEUVER.
LET'S TAKE ADVANTAGE OF THE DIFFERENCE THAT WE HAVE AVAILABLE, AND IT IS DIFFERENT FOR EVERY SCHOOL DISTRICT.
YOURS JUST HAPPENS TO BE 13.83 CENTS.
THEY SAY, "LET'S TAKE THE DISASTER PENNIES THIS YEAR AND NEXT YEAR, WE'LL HAVE A TRE TO GET TO THE OTHER 17. YES.
>> EXCUSE ME, JUST SECOND BEFORE I LOSE MY TRAIN OF THOUGHT.
>> DOES THAT NOT TAKE US RIGHT BACK TO WHAT MS. LILES SAID, THE PEOPLE THAT CAN'T USE THIS NOW BECAUSE THEY'VE ALREADY USED ALL THEIRS, AND IF WE USE THIS, WON'T WE BE IN THE SAME BOAT?
>> NO, SIR. BECAUSE THIS IS A ONE-TIME DEAL.
THIS DISASTER PENNY ONLY APPLIES FOR ONE YEAR.
NEXT YEAR AS MISS BIRD SAID, IT'S GOING TO FALL BACK TO 13.83 CENTS UNLESS YOU DO A TRE ELECTION THIS YEAR OR NEXT YEAR.
WE'RE NOT PERMANENTLY TAKING IT TO 17 CENTS.
IT WOULD ONLY BE FOR ONE YEAR.
>> WHAT ABOUT THE SECOND YEAR?
>> JUST KEEP LISTENING. [LAUGHTER] [OVERLAPPING]
>> IS SIMPLY A ONE-TIME SHOT AT THIS 3.17 CENTS, AND IT'S A TEMPORARY TAX.
>> BUT WHAT MR. BROOKS IS SAYING IS THIS, JUST LIKE YOU SAID, OTHER DISTRICTS CAN'T TAKE ADVANTAGE OF THIS BECAUSE THEY'RE ALREADY AT THE 17 CENTS, HE FEELS AS THOUGH IF WE TAKE ADVANTAGE OF THE THREE PENNIES THIS YEAR, WE'LL BE AT THAT 17 CENTS.
IN THE EVENT THAT WE DO HAVE A DISASTER FOR THE '25/'26 SCHOOL YEAR,
[00:40:04]
WE ARE GOING TO BE IN A SITUATION WHERE WE CAN'T GO AFTER DISASTER PENNIES BECAUSE WE'VE ALREADY MAXED OUT AT THE 17 CENTS.WELL, AM I CORRECT HERE, MR. BROOKS?
>> THAT WOULD BE A GOOD POINT, BUT I WOULD SUGGEST THAT IN ORDER TO TAKE ADVANTAGE OF IT, THIS IS WHY THE APRIL, MAY DISASTER LAST YEAR IS ONLY IMPACTING YOU NOW BECAUSE IT GETS IMPACTED ON ANNUAL BUDGET PERIODS.
YOU TAKE ADVANTAGE OF IT NOW FOR THIS BUDGET PERIOD, IF THERE IS ANOTHER DISASTER DURING THIS SCHOOL YEAR, THEN THE GOVERNOR PRESUMABLY WOULD DECLARE ANOTHER DISASTER, I WOULD GIVE YOU THE OPPORTUNITY NEXT YEAR TO PICK UP THOSE ADDITIONAL PENNIES.
IN OTHER WORDS, NOT TAKING THE 3.17 CENTS NOW IS NOT GOING TO MEMORIALIZE YOUR OPPORTUNITY TO TAKE IT LATER IN THE SCHOOL YEAR BECAUSE THE ONLY TIME YOU CAN TAKE IT IS DURING THE TAX SETTING PERIOD.
>> QUICK QUESTION AND THEN YOU CAN GIVE SOME INSIGHT ONTO THIS.
IF THIS IS SOMETHING THAT'S OUT THERE BECAUSE IT'S A LOOPHOLE, LET'S CALL IT WHAT IT IS, IT'S A LOOPHOLE.
WHY AREN'T DISTRICTS INCLUDING IRS JUMPING THROUGH THIS LOOPHOLE EVERY OTHER YEAR?
>> BECAUSE THERE'S NOT DISASTER DECLARATIONS EVERY OTHER YEAR.
>> EVEN WHEN THERE ARE, THERE'S A LOT.
SINCE I'VE JUST BEEN ON THIS BOARD, WE'VE HAD DISASTER DECLARATIONS HAPPEN, AND WE'VE NEVER TAKEN ADVANTAGE OF THIS.
I IMAGINE THERE ARE OTHER DISTRICTS THAT DON'T, AND IN MY MIND, THE WAY I CAN REASON THAT IS MAYBE THEY WEREN'T AFFECTED BY THE DISASTER, WHICH IS WHAT I KEEP GOING BACK TO, BUT THOSE LIKE WHAT HAPPENED IN THE HILL COUNTRY, THE HORRIBLE FLOODING THAT HAPPENED THERE.
I WOULD EXPECT THEY WOULD TAKE THIS NEXT YEAR BECAUSE THEY COULDN'T DO IT FOR 24, THAT THEY WOULD TAKE IT NEXT YEAR, IF A TORNADO RIPPED THROUGH YOUR CITY AND DESTROY THINGS.
I'M JUST CURIOUS WHY DISTRICTS DON'T USE THIS LOOPHOLE MORE OFTEN.
I DID POINT OUT, ONE OF THE THINGS THAT WE TALK ABOUT IS OUR TITLES OR FINANCIAL ADVISORS OR MUNICIPAL ADVISORS.
WE'RE ADVISORS, WE'RE NOT DECISION MAKERS.
YOU GUYS ARE THE DECISION MAKERS AND WE RESPECT THAT.
IT COULD BE ANY NUMBER OF REASONS.
ONE, THEY'RE ALREADY AT THEIR 17 CENTS.
TWO, THEY MAY SIMPLY NOT EVEN BE AWARE OF IT.
THREE, THEY MAY NOT HAVE THE DECLINE IN PROPERTY VALUES THAT YOU'RE HAVING THAT'S EXACERBATING YOUR PROBLEMS HERE, AND IF THEY'RE FLUSH OTHERWISE, THEY MAY NOT FEEL THE NEED.
EVERY SCHOOL DISTRICT IS GOING TO BE DIFFERENT.
>> I'M JUST CURIOUS HOW YOU CAME TO GRAND PRAIRIE TO ADVISE US TO DO THIS.
WAS IT SOMETHING, LIKE, BECAUSE IT'S THERE, YOU'RE JUST REACHING OUT TO ALL SCHOOL DISTRICTS IN DALLAS COUNTY OR HOW DID IT HAPPEN? I'M JUST CURIOUS BECAUSE WE'VE NEVER SEEN YOU BEFORE, SO I'M JUST CURIOUS.
>> I WANT TO MAKE SURE EVERYBODY UNDERSTANDS IT VERY CLEARLY.
THESE ARE NOT AMBULANCE CHASERS.
THIS IS A GROUP OF GENTLEMEN THAT I HAD THE PRIVILEGE OF WORKING WITH WHEN I WAS A SUPERINTENDENT IN NACOGDOCHES.
FOR THE FIVE YEARS I WAS THERE, WE PASSED A $70 MILLION BOND.
BY THE STRATEGY THAT WE WERE ABLE TO USE, WE WERE TO PAY DOWN THAT DEBT BY $20 MILLION THAT SECOND CYCLE YEAR IN INTEREST.
IT'S STRATEGY IT'S HAVING CONVERSATIONS.
I TRULY ALWAYS SAY, IF YOU WANT TO BE LIKE THE YANKEES, YOU PLAY LIKE THE YANKEES.
YOU FIND THE BEST PEOPLE THAT ARE OUT THERE, I'M SURE THERE'S OTHER ADVISORS THAT ARE OUT THERE, BUT THESE ARE TWO GENTLEMEN THAT I'VE HAD THE PRIVILEGE OF WORKING WITH AND KNOWING AND TRUST IN THE GUIDANCE THAT THEY'VE GIVEN ME AS A SUPERINTENDENT.
I KNOW THEY'VE WORKED IN EAST TEXAS, I KNOW THAT BOB HAS A PIECE OF PROPERTY AT CATTLE LAKE, AND HE ALWAYS BRAGGED ABOUT THE FACT THAT WHEN HE WAS GOING TO CATTLE LAKE, HE CAN COME BY THE NACOGDOCHES.
[LAUGHTER] THE ISSUES IN NACOGDOCHES ARE THE SAME ISSUES THAT WE'RE HAVING HERE WHEN IT COMES TO FINANCIALS, SO ALL WE DO IS SURROUND OURSELVES WITH INDIVIDUALS THAT ARE EXPERTS, SO I REACH OUT TO CLARENCE, GENTLEMEN THAT IS SITTING OUT IN THE AUDIENCE, AND I SAID, CLARENCE, I THINK I NEED TO HAVE A CONVERSATION WITH YOU.
WE STARTED HAVING CONVERSATIONS ON THE SIDE TO FIGURE OUT EXACTLY WHAT THAT IS.
I'M NOT GOING TO BRING THEM IN JUST BECAUSE I LIKE THEM.
I HAD THEM COME IN AND VISIT WITH MY FINANCIAL TEAM THAT'S HERE AND THEY SAT DOWN, THEY WENT THROUGH, WE VISITED WITH MOTEN CASEY, WHICH IS AN ATTORNEY FIRM THAT DEALS WITH THE FINANCIALS, AND SO WE HAD THE PRIVILEGE OF HAVING MOTEN CASEY IN THE ROOM WITH US.
NO SPOOF ON OUR OWN ATTORNEY, BUT SHE KNOWS MOTEN CASEY AND AND THE GUIDANCE THEY GIVE US.
I WANT TO MAKE SURE THAT WE KNOW THAT THIS IS SOMETHING THAT I AS A SUPERINTENDENT, REACHED OUT TO RBC AND SAID, "CAN WE VISIT? CAN WE LOOK AT ITEMS?" THERE'S OTHER THINGS THAT I'M CONCERNED ABOUT THAT WE NEED TO TAKE A LOOK AT THAT WILL COME LATER AND DEALS WITH BONDS AND SOME OF THE THINGS THAT WE COULD DO THERE WITH REGARDS TO OUR INTEREST,
[00:45:01]
AND IT'LL BE RESPONSIBILITY, SOME ACTIONS THAT WOULD BE RESPONSIBLE TO OUR TAXPAYERS AS WELL.THERE'S A MODEL THAT WE'LL BE WORKING WITH AND I DO WANT TO MAKE SURE IT'S CLEAR CLEAR.
I REACHED OUT TO MR. GREER AND HAVE COME SIT WITH ME AND I INTRODUCED HIM TO THE TEAM BUT I ASKED THEM TO COME IN TONIGHT JUST AS AN ADVISING TEAM WITH SOME OF THE INFORMATION THEY CAN PROVIDE FOR US.
>> BUT WOULD YOU NAME THIS COMPANY?
[LAUGHTER] WE HAVE NOT RETAINED THE COMPANY, NO.
I'LL LET YOU REVERSE ME FOR MY OLD SMOKEY BARBECUE I HAD BEFORE THE MEETING.
NO, I'M KIDDING. I WANT YOU TO SUBMIT THAT.
LET ME TRY TO ANSWER YOUR QUESTION AND THEN AND THEN ONE OTHER QUESTION THAT I HEARD AND THEN I'LL SIT DOWN.
I HAPPEN TO TEACH NOT SCHOOL FINANCE, BUT PUBLIC FINANCE AT TEXAS STATE UNIVERSITY AS PART OF THEIR CERTIFIED PUBLIC MANAGERS PROGRAM, AND MY WIFE WOULD SAY THAT I'M A GOOD PROFESSOR BECAUSE I LIKE THE SOUND OF MY OWN VOICE.
MUCH LONGER, I KNOW THAT YOU DON'T WANT ME TO.
BUT, WE WERE ANSWERING THE QUESTION OF WHY OTHER SCHOOL DISTRICTS AREN'T DOING IT, OR WHY SOME OF THEM ARE DOING IT NOW THAT HAVEN'T DONE IT IN THE PAST.
AGAIN, IT HAS TO DO WITH ALL THESE MOVING PARTS, AND THE FACT AND I THINK MS. BROOKS WAS TRYING TO POINT THIS OUT.
THE FACT THAT WE'VE HAD OUR HOMESTEAD EXEMPTIONS GO UP THIS BUDGET CYCLE, IS GOING TO ALLOW THIS DISTRICT, IF YOU WANTED TO, THIS IS UP TO THE BOARD.
YOU COULD IMPLEMENT THIS 3.17 CENT TAX RATE INCREASE, AND THE RATES GOING TO GO UP, BUT BECAUSE OF THE INCREASE IN THE EXEMPTIONS, THE ACTUAL TAX BILLS BECAUSE OF THE INCREASE IN THE EXEMPTION, LIKELY TO GO DOWN.
IS YOU TAKE A $300,000 HOUSES AND THAT WAS THE NUMBER THAT YOU GAVE, WE KNOW THAT IF IT'S A HOMESTEAD EXEMPTION UNDER CURRENT STATE LAW, IT CAN ONLY GO UP 10% A YEAR.
THE MAXIMUM OF $300,000 HOMESTEAD VALUE COULD GO UP WOULD BE 30,000, AND THE EXEMPTION JUST WENT UP 40,000.
I FEEL PRETTY CONFIDENT IN SAYING, THAT EVEN IF YOU ADOPTED THIS 3.17 CENTS TO YOUR TOTAL TAX RATE AND I USE THAT TERM BECAUSE I WANT TO GET TO THE OTHER QUESTION THAT WAS ASKED OF THE DOCTOR, YOU'RE STILL GOING TO HAVE A NET NET TAX BILL THAT'S GOING TO BE LESS TO YOUR TAXPAYERS.
NOW THE OTHER QUESTION THAT GOT ASKED WAS, IS THERE ANOTHER WAY TO TAKE ADVANTAGE OF THE STRATEGY WITHOUT HAVING YOUR TOTAL TAX RATE IMPACTED? THAT WAS THE QUESTION THAT MR. BROOKS I ASKED BEFORE HE LEFT.
THE ANSWER IS YES, THERE ARE OTHER STRATEGIES.
FOR EXAMPLE, WE DID NOT DISCUSS THIS WITH THE FINANCE TEAM, BUT YOU'VE GOT ABOUT $38 MILLION FUND BALANCE IN YOUR INTEREST IN SINGAPORE.
WHAT WE COULD DO, YOU SEE THE NUMBERS OF WHAT THE IMPACT HERE IS.
$38 MILLION IS JUST ABOUT 100% BECAUSE YOUR AVERAGE ANNUAL DEBT SERVICE IS ABOUT 40 MILLION.
YOU'VE GOT A VERY HEALTHY I&S FUND BALANCE.
WHAT YOU COULD DO, IS RAISE 3.17 CENTS ON THE M&O SIDE, LOWER YOUR I&S TAX RATE BY THAT SAME 3.17 CENTS, THE TOTAL NOMINAL TAX RATE WOULD REMAIN THE SAME, AND YOU STILL GET THE EXTRA MILLION TWO OUT OF THE STATE, AND YOU'RE PUTTING ALL 5.1 INTO YOUR M&O ACCOUNT.
THERE'S ANOTHER STRATEGY TO GET TO THE SAME SPOT, EXCEPT YOU'RE DRAWING DOWN YOUR I&S FUND BALANCE AND NOBODY LIKES TO DO THAT, BUT WE ALL KNOW UNDER THE SCHOOL FUNDING LAWS, THE STATE FUNDING LAWS, BECAUSE CITIES AND COUNTIES ALSO SEGREGATE M&O AND I&S, YOU'RE EXTREMELY LIMITED COMPLETELY LIMITED.
ON WHAT IT IS THAT YOU COULD DO WITH I&S MONEY.
YOU'RE NOT LIMITED AS TO WHAT YOU CAN DO WITH M&O MONEY.
THAT WOULD SOLVE YOUR PROBLEM.
BUT AGAIN, THAT'S JUST ANOTHER STRATEGY, THERE ARE MULTIPLE STRATEGIES.
I THINK, AND IT'S NOT MY PLACE BECAUSE WE HAVEN'T WE'RE NOT FORMALLY ENGAGED BY THE SCHOOL DISTRICT, THAT WHEN YOU CONSIDER WHAT THE IMPACT OF THE NET NET TAX BILL TO THE ORDERS ARE GOING TO BE GIVEN THE INCREASE IN THE HOMESTEAD EXEMPTIONS AND THE LIMITATIONS ON THE INCREASE OF THE IMPACT OF HOMESTEAD EXEMPTIONS ON AN ANNUAL BASIS, I THINK YOU COULD ADD 3.17 IN THE TAX BILL.
CITIZENS ARE ACTUALLY GOING TO GO DOWN TO THE HOMESTEAD PROPERTY OWNERS, NOT TO THE COMMERCIAL PROPERTY OWNERS, BUT TO THE HOMESTEAD PROPERTY OWNERS.
I WANT TO BE CLEAR ABOUT THAT.
I'M HAPPY TO ANSWER ANY QUESTIONS.
I'M HAPPY FOR MR. GREER TO COME UP AND ANSWER ANY QUESTIONS.
>> FOR MISS BIRD, ON THE TECHNICAL VALUE SHEET THAT WE WERE JUST ON, I THINK WHERE YOU WERE TALKING ABOUT THE RESIDENTIAL PERCENTAGE IS DOWN OVER 16% OVER THE PRIOR YEAR.
IS THAT SPECIFIC TO GRAND PRAIRIE OR IS THAT DALLAS COUNTY?
>> ARE YOU ON? I DON'T KNOW IF YOU'RE ON THE MIC.
IS IT GREEN? THERE IT IS. YOU SHOULD BE ON.
[00:50:09]
>> NO, MA'AM. THAT IS SPECIFIC TO GRAND PRAIRIE.
IN THE NEXT THING ON THE AGENDA, INFORMATION ITEM ON THE AGENDA, WE WILL LOOK AT THE ACTUAL NUMBERS THAT THE APPRAISAL DISTRICT SENT US.
SO YOU WILL SEE THAT THAT IS STRICTLY GRAND PRAIRIE.
SINCE WE'RE ON HOMESTEAD EXEMPTIONS, I DID JUST WANT TO SHOW YOU A VISUAL OF HOW OUR HOMESTEAD EXEMPTION HAS INCREASED BY A VERY LARGE AMOUNT IN RECENT YEARS.
IT HAS ALMOST DOUBLED OR IT HAS DOUBLED SINCE '22/'23.
THE LAST PIECE OF REVENUE THAT I WANTED TO TOUCH ON, I WAS JUST GOING TO TALK ABOUT SOME OF THE RECENT LEGISLATION, SOME OF THE THINGS THAT IMPACTED OUR REVENUE, SOME OF THE OTHER THINGS, SOME OF THESE YOU'RE PROBABLY ALREADY FAMILIAR WITH, THE TEACHER RETENTION ALLOTMENT BEING ONE OF THOSE.
I KNOW WE TALKED ABOUT THAT IN OUR MEETINGS ABOUT THE COMPENSATION PACKAGE.
THAT IS GOING TO BRING US ADDITIONAL REVENUE OF $7 MILLION.
THERE'S ALSO ANOTHER COMPONENT TO THAT TIED TO PAYROLL.
IT'S CALLED THE SUPPORT STAFF RETENTION ALLOTMENT.
WE'LL RECEIVE $45 PER REGULAR PROGRAM ADA, SO T HAT IS $893,000 APPROXIMATELY.
THEY ALSO CREATED WHAT'S CALLED A BASIC COST ALLOTMENT, AND IT JUST SAYS TO PAY FOR INCREASED COST.
THERE WASN'T ANY SPECIFICS ON THAT.
IT'S $106 PER ENROLLED STUDENT, SO THAT'S $2.7 MILLION.
WE DID USE THAT FOR THE COMPENSATION PACKAGE.
THE SAFETY AND SECURITY ALLOTMENT, IT INCREASED FROM $10 TO $20 PER ADA, AND THEN PREVIOUSLY, WE GOT $15,000 PER CAMPUS.
GOING FORWARD, WE'LL GET $33,540 PER CAMPUS, SO THAT'S ABOUT 931,000.
THEY DID INCREASE THE BASIC ALLOTMENT BY $55.
THAT WILL BE THE FIRST INCREASE SINCE 2019, SO IT'S INCREASING FROM 6,160-6,215.
ARE THERE ANY MORE QUESTIONS ABOUT THE REVENUE?
>> I JUST WANT TO MAKE SURE THAT THE PUBLIC UNDERSTANDS THAT ALL OF THESE THINGS, THE TEACHER RETENTION, THE SUPPORT STUFF, THE BASIC COST ALLOTMENT, AND THE SCHOOL SAFETY ALLOTMENT ARE EARMARKED FOR THOSE SPECIFIC THINGS, THAT WE DON'T HAVE AUTONOMY OVER THAT MONEY.
WE ONLY HAVE AUTONOMY OVER THE BASIC ALLOTMENT NUMBER.
>> ANY OTHER DISCUSSION ABOUT THE REVENUE BEFORE WE MOVE ON TO LOOK AT EXPENDITURES?
>> I HAD NOT PLANNED TO SPEND A LOT OF TIME ON EXPENDITURES TONIGHT.
I WAS JUST GOING TO HIT THE HIGH POINTS AND IF YOU'LL HAVE QUESTIONS, WE CAN DIG A LITTLE DEEPER AND TALK ABOUT IT.
LET'S LOOK AT OUR EXPENDITURES.
YOU ALL KNOW YOU APPROVED THE COMPENSATION PACKAGE FOR 25/26 AT THE END OF JULY.
YOU KNOW THAT IT INCLUDED RAISES FOR TEACHERS AND A ONE TIME STIPEND FOR OTHERS BASED ON YEARS OF EXPERIENCE.
PAYROLL IS THE BIGGEST CHUNK OF OUR BUDGET.
IT'S 85% OF OUR TOTAL BUDGET, 54% OF THAT 85% IS DIRECTLY RELATED TO INSTRUCTIONAL SALARIES.
YOU'LL SEE ANOTHER VISUAL THAT RELATES TO OUR PAYROLL EXPENSES.
THEN ALSO THERE IS A CALCULATION OF WHAT THE PAYROLL BUDGET INCREASE DUE TO THE APPROVAL OF THE COMPENSATION PACKAGE.
YOU'LL SEE IT WAS $15.4 MILLION, BRINGING OUR TOTAL PAYROLL BUDGET IN THE GENERAL FUND TO $267 MILLION.
[00:55:06]
WHICH IS PAYS FOR SUPPLIES, UTILITIES, EVERYTHING, BUT PAYROLL, WE SPEND THE MOST AMOUNT IN MAINTENANCE AND ALSO IN INSTRUCTION.WE'RE LOOKING AT A TOTAL EXPENDITURE BUDGET FOR 25/26 WITH THE COMPENSATION PACKAGE THAT WAS PREVIOUSLY APPROVED OF $315.8 MILLION.
>> I STILL AND GOD FORGIVE ME, BUT I DON'T THINK I'M THE ONLY ONE.
WHAT'S THE DEFINITION OF A TEACHER? BECAUSE I KNOW I'M HEARING SOME I THINK THEY'RE A TEACHER.
THE ONE GOOD EXAMPLE THAT I CAN THINK OF RIGHT OFF THE TOP OF MY HEAD WAS THE IMSS AND THE IMAS
>> THAT'S THE INSTRUCTIONAL MEDIA.
>> THE IMAS, THEY ARE NOT A TEACHER.
THE IMSS, I KNEW WASN'T A TEACHER.
BUT THEY'RE STILL ON WHAT CONTRACT? ARE THEY STILL ON A TITLE LIKE A TEACHER CONTRACT OR?
>> THE METHODOLOGY THAT MOST SCHOOL DISTRICTS ARE USING TO DETERMINE, WHO IS A TEACHER, THEY LOOK BACK AT THEIR PMS DATA, AND THERE IS A CODE SPECIFICALLY FOR TEACHERS.
I KNOW THAT DOESN'T MEAN ANYTHING TO YOU.
BUT THAT IS WHAT MOST DISTRICTS THAT I'VE HEARD OF ARE USING TO DETERMINE WHO THAT RETENTION ALLOTMENT APPLIES TO.
>> THE EXAMPLE THAT I WAS TOLD OR WAS SUPPOSED TO HAVE USED AND IT'S NOBODY IN THIS IN THIS ROOM WAS HANDS ON.
IF YOU'RE A HANDS ON INSTRUCTIONAL EMPLOYEE, THEN YOU'RE A TEACHER.
THEN I FIND OUT THAT AIN'T RIGHT.
>> I'M NOT SURE WHAT THE TECHNICAL DEFINITION IS OF THE ROLE 087, BUT I CAN LOOK IT UP IN THE PMS TABLE AND GET THAT TO YOU AT A LATER TIME.
>> AS HAVE BEEN DEFINED, IS THAT FOR SURE? I KNOW THERE WAS SOME SPECULATION, AT ONE POINT, WE DIDN'T KNOW IF THAT'S WHAT THEY WERE GOING TO DEFINE AS A TEACHER, BUT IT IS NOW YOU THINK?
>> THAT'S THE METHODOLOGY THAT MOST DISTRICTS ARE USING.
THE STATE STILL HAS NOT REALLY NAILED THAT DOWN.
>> BUT THAT'S AS CLOSE AS YOU KNOW, WE COULD GET FOR THAT.
>> I HAVE A QUESTION THOUGH. >> [INAUDIBLE]
>> MADAM PRESIDENT, CAN I ASK A QUESTION?
I KNOW THE IMA, I KNOW STRATEGISTS.
THEY WERE ALL TEACHERS, AND THEY WILL BE GETTING A $100 LESS ON THE MATRIX THIS YEAR.
EVEN THOUGH THEY ARE TEACHERS AND THEY HAVE BEEN TEACHERS.
IS THAT STILL WITH THE ROLE ID?
>> THAT ONCE AGAIN, WE'RE WAITING FOR DEFINITION FROM THE STATE.
THE STATE HASN'T GIVEN ANY GUIDANCE WITH IT.
AS SOON AS WE GET IT, THEN WE'LL HAVE TO ADJUST PRETTY QUICKLY TO WHATEVER THAT IS FOR THOSE FOLKS THAT WE HAVE ACROSS THE SPECTRUM.
THE REASON WE HAD THE CODE THAT WAS THERE, WE NEVER REALLY YOU CAN CODE THEM AS A TEACHER, EVEN SOME DISTRICTS THAT CODE ADMINISTRATORS AS TEACHERS, EVEN THOUGH THEY'RE ADMINISTRATORS.
BUT THERE'S OTHER REASONS THEY DO THAT FOR THAT MOVEMENT.
RIGHT NOW, WE'RE JUST GOING TO HAVE TO WAIT AND SEE WHAT THE STATE CONTINUES TO DEFINE AND REFINE.
AS SOON AS THEY DO THAT, WE WILL ADJUST ACCORDINGLY WITH HR AND WITH PAYROLL AND MAKE THOSE ADJUSTMENTS AS NEEDED.
>> BECAUSE IF THAT CONTINUES, WE WILL NOT HAVE TEACHERS THAT WANT TO BE AN IMS OR A COUNSELOR OR STRATEGIST BECAUSE THEY'LL GET LESS MONEY.
>> THAT'S THE STRATEGY THAT AUSTIN IS SENDING.
THEY WANT PEOPLE TO STAY IN THE CLASSROOM.
THAT'S ALSO FOR ADMINISTRATORS.
IT'S HARD FOR SOME ADMINISTRATORS TO LEAVE BECAUSE THEY'RE GOING TO MAKE LESS MONEY BECOMING AN ASSISTANT PRINCIPAL WHEN THEY WOULD MAKE MORE MONEY REMAINING IN THE CLASSROOM.
THAT'S A STRATEGY THAT THE STATE IS ACTUALLY LOOKING AT, THE MOST VALUABLE ASSET TO THE KIDS, AND I WHOLEHEARTEDLY AGREE, IS A VALUE THAT OUR TEACHERS BRING.
ONCE AGAIN, WE'LL ADJUST BASED ON WHAT WE HEAR FROM THE STATE AS THEY GIVE IT TO US.
>> THANK YOU, MR. BIRD. I DIDN'T MEAN TO GET IN ALL THAT.
>> I WAS GOING TO ASK THAT QUESTION ANYWAY BECAUSE I WONDER WHY THEY WERE GETTING $100 LEFT.
>> ON SLIDE 14, THERE'S A VISUAL OF OUR TOTAL EXPENDITURES, HOW THEY'VE BEEN TRENDING, YOU CAN SEE, THEY'VE BEEN TRENDING UP FOR THE PAST SEVERAL YEARS SPECIFICALLY SINCE COVID.
I WILL SAY THAT OUR 24/25 EXPENDITURE BUDGET IS 299.5 MILLION,
[01:00:08]
AND WE ARE EXPECTING A $315.8 MILLION EXPENDITURE BUDGET FOR 25/26, SO THAT RECONCILES BACK TO WHAT THE COMPENSATION PACKAGE CAUSED AS AN INCREASE.ARE THERE ANY OTHER QUESTIONS ABOUT OTHER EXPENDITURES? IS THERE ANY MORE DISCUSSION? IN ADDITION TO THE GENERAL FUND, THERE ARE TWO OTHER FUNDS LEGALLY THAT YOU HAVE TO ADOPT AND ONE OTHER FUND LOCALLY THAT WE ASK YOU TO ADOPT.
IT'S THE DEBT SERVICE BUDGET, THE CHILD NUTRITION BUDGET, AND THE MACKENZIE SCOTT BUDGET.
THE DEBT SERVICE BUDGET AND THE PAYROLL AND THE CHILD NUTRITION BUDGET, THEY ARE BOTH BALANCED.
IN THE GENERAL FUND, WE ARE LOOKING AT A DEFICIT ANYWHERE FROM 17.2 MILLION TO 22 MILLION.
THAT DEPENDS ON IF YOU UTILIZE THOSE DISASTER PENNIES OR WHAT DIRECTION WE GO, WHAT STRATEGY WE USE FOR THAT.
I BELIEVE WE'RE PLANNING TO PRESENT THOSE BUDGETS TO YOU ON AUGUST THE 26.
WE ARE ALSO PLANNING TO HAVE THE PUBLIC HEARING WHERE YOU CAN ADOPT THE BUDGET, THE TAX RATE, APPROVE SOME FINAL BUDGET AMENDMENTS AT THAT TIME.
THE NEXT COUPLE OF SLIDES ARE JUST EXAMPLES OF HOW YOU WILL SEE.
THE BUDGET, I DID INCLUDE ON THE PREVIOUS SLIDE, THE TWO DIFFERENT VERSIONS, A $17.2 MILLION DEFICIT VERSUS A $22 MILLION DEFICIT.
THIS INFORMATION RIGHT HERE IS JUST A VERY HIGH LEVEL SUMMARY.
OUR ESTIMATED TOTAL REVENUES, INCLUDING OUR CHILD NUTRITION AND DEBT SERVICE WOULD BE 358 MILLION.
IF WE DID UTILIZE THE DISASTER PENNIES, IF WE DID NOT, IT WOULD COME DOWN TO 352 MILLION.
ANY QUESTIONS OVER THAT? WE WANTED TO TAKE A MINUTE AND GIVE YOU AN OPPORTUNITY TO LOOK AT THE MACKENZIE SCOTT BUDGET AND THE SUMMARY SHEET, I BELIEVE YOU HAVE IN FRONT OF YOU AND ASK ANY QUESTIONS YOU MAY HAVE IN REGARDS TO THAT BECAUSE WE WILL BE ASKING YOU TO ADOPT THAT BUDGET AS WELL ON AUGUST 26.
WE ARE STILL WORKING ON RECONCILING ALLOCATING INTEREST, CLOSING OUT SOME POS, SO THESE ARE NOT THE EXACT NUMBERS OF THE MACKENZIE SCOTT BUDGET.
I JUST WANTED TO POINT THAT OUT.
THERE IS A LITTLE BIT OF INTEREST THAT NEEDS TO BE ALLOCATED, BUT THAT IS SUBSTANTIALLY CORRECT.
ARE THERE ANY QUESTIONS ABOUT MACKENZIE SCOTT?
>> I DO. I'M CURIOUS BECAUSE WHEN I LOOK AT WHAT YOU HAVE UP HERE, OBVIOUSLY, IT MAKES SENSE THAT YOU'RE SAYING WE'RE GOING TO PROJECT $250,000 WORTH OF INTEREST OR IS THAT A MILLION? I DON'T KNOW. I THINK IT'S 250,000.
>> TWO HUNDRED AND FIFTY THOUSAND.
>> IT'S 250,000. YES I'M SORRY.
>> THEN YOU'RE SAYING THAT WE'RE GOING TO SPEND 3.4, WHICH IS -3.2.
BUT WE STILL HAVE 9.4 THAT HASN'T BEEN SPENT.
>> I'M JUST GOING TO BE HONEST WITH YOU RIGHT HERE.
I PULLED THIS INFORMATION FOR THIS SLIDE PROBABLY PREMATURELY, AND DID NOT LOOK AT IT. THAT'S MY MISTAKE.
>> I JUST WANT TO MAKE THAT REAL CLEAR BECAUSE [OVERLAPPING] THERE'S A LOT OF PEOPLE OUT THERE THAT QUESTION THE MACKENZIE SCOTT MONEY.
I WANT TO BE VERY CLEAR THAT THIS IS NOT REFLECTIVE.
>> OF WHAT IT IS. IF YOU HAVE QUESTIONS, COME TALK TO ME BECAUSE I CAN TELL YOU THE ANSWERS.
BUT THIS CONCERNS ME THAT WE'RE THROWING THIS OUT THERE FOR THE PUBLIC BECAUSE THIS IS A HUGE BUDGET CONCERN OF THEIRS THEY CONSTANTLY WANT TO KNOW.
>> THIS IS JUST AN EXAMPLE OF WHAT IT WILL LOOK LIKE.
IT IS NOT REFLECTIVE OF WHAT THE ACTUAL NUMBERS ARE GOING TO BE.
[01:05:05]
WE'RE GOING TO ADOPT ALL THREE OF THE PREVIOUS BUDGETS TOGETHER, AND THEN WE'RE GOING TO HANDLE THIS ONE SEPARATELY AS A SEPARATE ACTION ITEM ACTUALLY ON THE AGENDA.LIKE I SAID, I BELIEVE WE'RE SCHEDULED TO MEET ON AUGUST 26TH AT 5:30.
WE'LL HAVE THE PUBLIC HEARING TO DISCUSS THE BUDGET AND THE TAX RATE.
WE'LL ASK YOU TO ADOPT THE GENERAL FUND INTEREST IN SINKING AND CHILD NUTRITION BUDGET.
WE'LL ALSO ASK YOU TO ADOPT THE 25/26 TAX RESOLUTION.
IF WE ELECT TO UTILIZE THE THREE DISASTER PENNIES, THERE WILL BE AN ADDITIONAL RESOLUTION THAT WILL ALSO NEED TO BE APPROVED.
WE'LL ASK YOU TO APPROVE THE FINAL BUDGET AMENDMENT FOR 24/25, AND ALSO, AS STATED PREVIOUSLY, ADOPT THE 25/26 MACKENZIE SCOTT BUDGET.
>> ON THE NOTICE TO PUBLIC MEETING THAT YOU HAVE TO HAVE. I THINK IT IS TODAY.
>> IT IS VERY HARD FOR ME TO READ WHAT'S ON HERE.
>> WHAT RATE DID YOU USE FOR THIS?
>> YOU CAN ALWAYS BE HIRED AND COME DOWN, YOU CAN'T GO BACK.
>> WE CANNOT, I WOULD HAVE TO REPUBLISH ALL THE NOTICES.
>> DOES IT HAVE IN HERE A STIPULATION OF IT BEING PURSUANT TO THE TEXAS [INAUDIBLE]?
>> YES. THERE IS A DISCLAIMER DOWN THAT HAS SOME LEGAL LANGUAGE ABOUT THE DISASTER PENNIES.
>> IT'S REAL BLURRY ON OUR STUFF.
IF YOU WOULDN'T MIND JUST GETTING ME AN ACTUAL.
>> ABSOLUTELY. ANYTHING ELSE? I HAVE ONE LAST THING THAT I WANT TO TALK ABOUT.
>> WE DID, AND IT'S GOOD NEWS.
WE RECEIVED OUR PRELIMINARY FINANCE RATING ON AUGUST 5TH, AND I'M HAPPY TO REPORT THAT THE DISTRICT RECEIVED A SUPERIOR ACHIEVEMENT RATING, AND ALSO SCORED 100 OUT OF 100 FOR THE SECOND YEAR IN A ROW.
I THOUGHT THAT WAS GOOD NEWS AND SOMETHING WORTH CELEBRATING. THAT'S ALL I HAVE.
>> GIVE THE LADIES OVER HERE ON THE SIDE OF BIG THUMBS UP, A LOT OF WORK FROM THE TEAM.
>> WE ALL KNOW THAT THE HARD PART ABOUT GETTING 100 IS KEEPING A 100.
>> LIKE THE HARD PART ABOUT HAVING THE 850 CREDIT SCORES IS KEEPING A 850 CREDIT SCORE?
>> IN THE EVENT THAT WE ADOPT A $22 MILLION BUDGET DEFICIT OR WHAT YOU'RE PROJECTING? OR HOW WOULD THAT AFFECT OUR RATING.
>> THAT'S A VERY GOOD QUESTION.
>> ADOPTING A DEFICIT BUDGET OF 17 MILLION, 22 MILLION, THAT DOESN'T IMPACT THE RATING DIRECTLY.
WHAT THAT DOES IMPACT, AND THERE IS AN INDICATOR THAT THEY JUDGE US ON ON THE FIRST REPORT, THAT IT IS ABOUT CASH FLOW.
IF WE ARE ADOPTING A DEFICIT BUDGET THAT BIG, THAT IS GOING TO BRING DOWN OUR RESERVES AND IMPACT.
I'M NOT SAYING THAT IT WILL DEFINITELY AFFECT OUR SCORE, BUT IT COULD WHEN WE START USING OUR RESERVES.
BECAUSE THE NUMBER OF DAYS CASH THAT WE HAVE ON HAND IS GOING TO START DECLINING.
THERE ARE DIFFERENT RANGES THAT YOU HAVE TO BE IN TO
DETERMINE WHICH RATING YOU GET IF YOU GET 10 POINTS, GET EIGHT POINTS. >> GO AHEAD
>> I WAS GOING TO SAY BECAUSE WHAT I THINK IS INTERESTING WHAT YOU JUST SAID IS WHETHER WE ADOPT A 22 OR A 17, SO IT DOESN'T MATTER?
>> WE'RE GOING TO TAKE A DING POTENTIALLY.
BUT I'M CURIOUS BECAUSE I THINK WITH THIS DING, IT BRINGS US DOWN TO LIKE 3.5 MONTHS, OR IS IT GOING TO BRING US BELOW THREE MONTHS?
>> I DON'T HAVE THAT CALCULATION.
IT MAY NOT BRING US DOWN TWO LEVEL, WHERE WE DO GET A DATE?
>> BECAUSE I KNOW THAT THE BULK OF THE DEFICIT IS THE COMPENSATION PLAN THAT WE PASSED.
WE KNEW THAT WE WERE DOING THAT.
WE KNEW THAT TO PASS THE COMPENSATION PLAN, IT WAS COMING OUT OF FUND BALANCE, WHICH WAS GOING TO REDUCE THAT DOWN TO 3.5.
>> I UNDERSTAND YOUR QUESTION.
>> NOW YOU'VE GOT ME TALKING ABOUT A GAP HERE,
[01:10:03]
BECAUSE I THINK YOU SAID IT WAS 14, 8 WAS COMPENSATION.[INAUDIBLE] WHATEVER NUMBER WE WERE PRESENTED WITH NINE.
THERE'S A DIFFERENCE BETWEEN THAT AND EITHER THE 17 OR THE 22.
BECAUSE WHAT I'M ASSUMING IS WE'RE HAVING LOWER ENROLLMENT, BUT ALSO WE'RE NOT RECOGNIZING THE DEFICIT COMPLETELY IN THIS PAST SCHOOL YEAR LIKE WE HAVE IN THE PAST.
I'M CURIOUS WHERE THAT BRINGS US THAT ADDITIONAL MONEY THAT WE'RE GOING TO POTENTIALLY HAVE TO PULL, WHERE WOULD THAT BRING US IF WE TRULY RECOGNIZE THE FULL DEFICIT? I'M CURIOUS. YOU DON'T HAVE TO ANSWER RIGHT NOW.
BUT I WOULD LIKE TO KNOW WHERE THAT IS.
THEN WHAT DINGS, LIKE, WHAT ARE THE 10 POINTS IS WHAT RANGE? EIGHT POINTS, WHAT RANGE? BECAUSE I DON'T KNOW THAT I COULD PROBABLY GO LOOK IT UP, BUT I DON'T KNOW THAT OFF THE TOP OF MY HEAD BECAUSE THAT WOULD AFFECT OUR RATINGS.
ADOPTING THE DEFICIT DOESN'T MATTER WHICH ONE WE'RE ADOPTING?
>> ACTUALLY, WHAT REALLY MATTERS WHENEVER YOU'RE FIGURING THE NUMBER THE AMOUNT OF CASH YOU HAVE ON HAND OR THE NUMBER OF DAYS CASH YOU HAVE ON HAND, THAT'S DIFFERENT FROM FUND BALANCE.
BUT WHAT THEY'RE GOING TO USE IS THE AUDIT, AUGUST 31.
IT REALLY DEPENDS ON WHAT IS YOUR CASH BALANCE ON THAT DAY.
IT DOESN'T LOOK AT ANY OTHER DAY.
>> PRESIDENT MOFFITT, BOARD MEMBER LILE BRINGS UP A GREAT QUESTION INTO THE LAST SEGUE OF THIS PRESENTATION, IF WE'RE DONE WITH THE PRESENTATION, WHICH WOULD BE MR. LAMB OR DR. LAMB TO SPEAK TO THIS.
I'M GOING TO ASK DR. HORTON AND TRACY TO STEP UP TO THE PODIUM AS WELL BECAUSE IT SPEAKS TO WHAT BOARD MEMBER LILE IS ASKING TO.
BECAUSE WE DO HAVE THE DEFICIT.
IT'S PART OF THE BUDGET PLAN. WHAT ARE WE GOING TO DO? HOW ARE WE GOING TO GET THERE? WHETHER IT'S 17 MILLION OR IT'S 21 MILLION.
WHAT IS THE PLAN AND HOW ARE WE MOVING FORWARD? WE WILL CONTINUE THIS DIALOGUE AS WE MOVE IN THROUGH THE YEAR.
BUT I WANTED TO ADDRESS THAT QUESTION TO BOARD MEMBER LILE SO THAT OUR COMMUNITY KNOWS THAT WE'RE REALIZING THAT THERE'S SOME THINGS THAT WE'RE GOING TO HAVE TO BE LOOKING AT.
I'M LOOKING AT BOARD MEMBER [INAUDIBLE] BECAUSE HE SENT ME SOME INFORMATION AND I SAID, WE'LL HAVE IT IN FUTURE MEETINGS, BUT IT'LL TAP INTO THAT, SIR. DR. LAMB.
>> QUICK QUESTION. ARE THEY GOING TO START TALKING ABOUT ADA AND OUR ATTENDANCE AND ENROLLMENT?
>> NO. THIS IS THE DEFICIT, WHICH SHE WAS ASKING, HOW ARE WE GOING TO ADDRESS THAT? BECAUSE WE'RE NOT GOING TO ADDRESS IT ALL WITH FUND BALANCE.
YOU GO IN THERE AND TAKE FUND BALANCE OUT TO THE DEGREE THAT WE HAVE.
THERE'S NO WAY WE CAN TAP IN THERE.
THERE'S OTHER THINGS THAT WE'VE GOT TO LOOK AT WHEN IT COMES TO IT.
>> THE REASON WHY I ASKED IS BECAUSE WHEN WE WERE SHE WAS GOING OVER THE PRESENTATION, THAT WAS ONE OF THE SLIDES THAT SHE DID NOT TALK ABOUT, AND I'VE SEEN A DRASTIC DIFFERENCE BETWEEN I THINK 22 EXCUSE ME, 25,000 AND GOING DOWN TO 22,000.
>> NO 25 IS THE ENROLLMENT NUMBER, BUT THE 22 IS THE 88 NUMBER.
>> NO WE WON'T BE TALKING ABOUT THAT BECAUSE THAT IS SO PLIABLE RIGHT NOW BECAUSE WE'VE STILL GOT ENROLLMENT OPEN.
I'LL GET THOSE NUMBERS TO THE BOARD.
>> DR. T HAS TASKED US WITH LOOKING AT SEVERAL DIFFERENT THINGS ACROSS THE SCHOOL DISTRICT THAT WE SEE OPPORTUNITIES AND MAYBE EMPLOY SOME STRATEGIES IN WHICH WE CAN SAVE FUNDING AND ALSO INCREASE FUNDING.
SPECIFICALLY IN OPERATIONS, LOOKING AT OUR SURPLUS PROPERTY THAT WE HAVE, DO WE HAVE INTENTIONS TO USE THAT IN THE FUTURE? IF NOT, WHAT WOULD LOOK LIKE TO BE ABLE TO SELL SOME OF THE PROPERTY AND ALSO CLOSE OUR GAP.
LOOKING AT ORGANIZATIONAL EFFICIENCIES THAT WE UTILIZE AS FAR AS TRANSPORTATION, HOW MUCH MONEY WE'RE SPENDING ON ROUTES, THE BEST ROUTES THAT WE HAVE, HOW MUCH MONEY WE SPEND ON MAINTENANCE OF BUSES.
DO WE TAKE ADVANTAGE OF DIFFERENT SOFTWARE THAT ALLOWS US TO CREATE MORE ROUTE SYSTEMS THAT WILL SAVE US MONEY? HOW DO WE EXERCISE ENERGY MANAGEMENT AND LOOKING AT OUR AC COSTS, ELECTRICITY COSTS, WATER COSTS.
DO WE HAVE ANY SYSTEMS OR PROCESSES IN PLACE THAT ALLOWS US TO USE THESE AND SAVE MONEY FOR FUTURE FUNDING? THAT IS A BIG HIT ON THE SCHOOL DISTRICT EACH YEAR WHEN WE LOOK AT SOME OF OUR ELECTRICITY COSTS AND OBVIOUSLY.
HOW DO WE STAFF? LOOKING AT OUR STAFF, NOT JUST FROM A PROFESSIONAL STANDPOINT, BUT LOOKING AT THE ENTIRE DISTRICT.
DO WE HAVE STAFFING FORMULAS AND SYSTEMS THAT ALLOW US TO CHOOSE STAFF THAT WE NEED THAT ARE CRITICAL NEEDS STAFF AND STAFF THAT WE MAY HAVE EXTRA OF SOME FLUFF IN SOME OF THE OTHER AREAS THAT WE HAVE IN THE SCHOOL DISTRICT? BEING ABLE TO TAKE A COMPREHENSIVE VIEW AND DETERMINE LOOKING AT ALL THESE THINGS, WHERE THERE ARE SAVINGS FOR THE DISTRICT.
[01:15:01]
BECAUSE WHEN OUR ENROLLMENT STARTS TO DROP, AS WE HAVE SEEN OVER THE LAST SEVERAL YEARS, OUR STAFFING SHOULD REFLECT THAT DROP AS WELL. I DON'T KNOW THAT.WE'VE DONE A REALLY GOOD JOB OF ADDRESSING THE STAFFING, NOT JUST WITH OUR PROFESSIONAL STAFF, BUT ALSO WITH OUR AUXILIARY STAFF.
THEN DR. HORTON IS GOING TO SHARE SOME OF THE THINGS THAT SHE'S LOOKING AT AS FAR AS CURRICULUM INSTRUCTION, TEACHING AND LEARNING, AND ACADEMICS.
>> GOOD EVENING FOR PRESIDENT MOFFITT MEMBERS OF THE BOARD AND DR. TRUJILLO.
I JUST ECHO WHAT DR. LAMB IS SHARING.
IN MY DIVISION, IT ENCOMPASSES ALL OF OUR TEACHING AND LEARNING DEPARTMENTS, OUR SCHOOL LEADERSHIP, AND OUR STUDENT SUPPORTS, AND WHAT WE'RE GOING TO BE ENGAGING IN THIS YEAR ARE CONVERSATIONS AROUND TWO BIG THINGS, REDUNDANCIES, AND EFFICIENCIES.
WE'RE GOING TO REALLY BEGIN THIS CONVERSATION ACROSS MY DEPARTMENTS, AND SOME OF THE EXAMPLES WILL BE GOING TO REALLY WORK WITH THE TEAM THREE LEVERS.
[NOISE] WE'RE GOING TO BE LOOKING AT OUR INSTRUCTIONAL PROGRAMS AND OUR INSTRUCTIONAL RESOURCES, AND WE'RE GOING TO BE LOOKING AT THEM ACROSS THE SYSTEM TO IDENTIFY ANY REDUNDANCIES IN PROGRAMS THAT WE MAY HAVE OUT THERE, ANY LACK OF EFFICIENCIES.
WHEN YOU BRING THE ENTIRE TEAM TOGETHER TO HAVE THAT CONVERSATION AND NOT HAVE THAT CONVERSATION IN ISOLATION, IT'S EASY TO IDENTIFY THOSE THINGS.
ADDITIONALLY, WE'RE GOING TO BE LOOKING AT OUR DEPARTMENT BUDGETS.
WE'RE GOING TO ENSURE THAT EVERY LINE CODE THAT WE'RE BUDGETED FOR HAS AN ACTIVITY THAT DIRECTLY IMPACTS STUDENT LEARNING.
IF THAT'S NOT HAPPENING, AND IF WE HAVE EXTRA FUNDS IN PLACE FOR WHAT IFS, WE CAN'T DO THAT WITH A DEFICIT BUDGET.
WE'RE REALLY TRYING TO GET AHEAD OF PROBABLY WHERE WE'RE GOING WITH THE ZERO BASED BUDGET AND START MAKING DECISIONS COLLECTIVELY ON HOW WE'RE USING OUR FINANCES TO SUPPORT TEACHING AND LEARNING IN THE CLASSROOM.
THEN THIRDLY, YOU HEARD DR. LAMB SAY STAFFING, I'M GOING TO BE ENGAGING WITH ALL OF MY LEADERS AROUND OUR DEPARTMENT STAFFING.
WE'RE GOING TO BE LOOKING AT JOB DESCRIPTIONS.
WE'RE REALLY GOING TO BE TALKING ABOUT WHAT DOES THE DAY TO DAY WORK LOOK [NOISE] LIKE.
WE'RE GOING TO BE HAVING CRUCIAL AND VULNERABLE CONVERSATIONS AROUND IS THERE OPPORTUNITIES TO CONSOLIDATE WORK AROUND ROLES TO GET TO EFFICIENCY AND HOW WE'RE STAFFING OUR SUPPORT PROGRAMS TO IMPACT STUDENT LEARNING.
I REALLY BELIEVE WHEN WE'RE LOOKING AT HOW OUR CAMPUSES ARE STAFFED, I REALLY BELIEVE WE'VE DONE A LOT WITH STAFFING AT OUR CAMPUSES AND THAT THEY PROBABLY ARE STAFFED CORRECTLY IF WE FOLLOW THE STAFFING FORMULA.
I'M GOING TO BE SPENDING MOST OF MY TIME THIS YEAR ENGAGING WITH TEAM MEMBERS AROUND HOW OUR CENTRAL SUPPORTS LOOK OUR INSTRUCTIONAL PROGRAMS AND OUR INSTRUCTIONAL RESOURCES. THANK YOU.
>> GOOD EVENING, PRESIDENT MOFFITT, DR. TRUJILLO, MEMBERS OF THE BOARD.
I'M GOING TO TALK ABOUT SOME WAYS TONIGHT THAT WE ARE GOING TO INNOVATE AND [NOISE] GET OUR STUDENTS EXCITED ABOUT THE PROGRAMMING THAT WE HAVE, INCREASE OUR ENROLLMENT, AND RETAIN, RECRUIT, AND BE ABLE TO REINVEST IN OUR CAMPUSES AND OUR PROGRAMMING.
WE'RE GOING TO TALK ABOUT INNOVATION.
WE'RE GOING TO TALK ABOUT HOW WE'RE GOING TO MAXIMIZE OUR WEIGHTED FUNDING, AND DR. HORTON ALLUDED TO THIS A LITTLE BIT, BUT WE'RE GOING TO REALLY LOOK AT MAKING SURE THAT WE'RE MAXIMIZING AND LOOKING AT THE RETURN ON INVESTMENT FOR ALL OF THE EXPENDITURES THAT WE HAVE.
THE SYSTEMS OF GREAT SCHOOLS HAS BEEN A GREAT TEAM WITH US THROUGH TEA TO INNOVATE.
WE'RE GOING TO CONTINUE WORKING WITH THEM.
WE'VE COME BEFORE YOU ALREADY WITH SOME IDEAS THAT WE HAVE AS FAR AS PROGRAMMING THAT WE HAVE AT DICKINSON, MOSTLY AT FLORENCE HILL AND AT TRUMAN.
THAT IS GOING SO AMAZINGLY WELL.
OUR TEAMS HAVE COME TOGETHER CROSS DEPARTMENTS, PLANNING.
THE KIDS ARE SO EXCITED AT TRUMAN, THOSE CLASSES ARE ALREADY AT CAPACITY.
IT IS MAKING A BIG DIFFERENCE IN EXCITEMENT AT TRUMAN, AND WE HOPE THAT THAT IS GOING TO ROLL INTO RETENTION OF THE STUDENTS AND THEN RECRUITMENT AS WE'RE ABLE TO GO INTO THE EXPERIENCE.
WE'RE GOING TO BE COMING BEFORE YOU HERE IN A COUPLE OF MONTHS TALKING ABOUT THE NEW BASS FISHING PROGRAM THAT WE'RE GOING TO BE HAVING AT SOME OF OUR CAMPUSES.
SPECIFICALLY AT GRAND BERRY HIGH AND AT DUBISKI, BARBERING IS COMING TO DUBISKI AS WELL.
DR. TRUJILLO HAS CHARGED MISS DOUGLAS AND REALLY ALL OF THE TEAM, MISS DOUGLAS AND ME AND OUR TEAM TO DREAM BIG FOR THE STUDENTS.
WE'RE REALLY EXCITED TO BRING SOME OPPORTUNITIES TO
[01:20:03]
YOU THAT WILL EXPAND OUR CHOICE PORTFOLIO, RECRUIT, AND RETAIN OUR STUDENTS, [NOISE] AND GET TO GET US BACK TO THE PLACE THAT WE HAVE BEEN PREVIOUSLY WITH INNOVATION IN OUR DISTRICT.WE'RE ALSO GOING TO BE LOOKING AT MAXIMIZING OUR WEIGHTED FUNDING WHEN WE CAN AS THE PROGRAMS COME IN.
WE WANT TO MAKE SURE THAT WHERE WE CAN, WE'RE MAXIMIZING ON THE WEIGHTED FUNDING AND GETTING THAT TO SUPPORT THE PROGRAMS THAT WE'RE IMPLEMENTING.
WE'RE GOING TO BE EXPLORING 1882 PARTNERSHIPS.
REINVIGORATING THE CHOICE PROGRAMMING THAT WE HAVE AT ALL OF OUR CAMPUSES.
IF IT SAYS IT ON THE OUTSIDE OF THE BUILDING, WE WANT IT TO BE LIVE AND IN EFFECT INSIDE THE BUILDING, AND WE'RE LOOKING AT THIS EXPERIENCE FOR THIS SCHOOL YEAR BEING THE MOST EXCITING ONE YET.
>> IN CLOSING, IT'S IMPORTANT THAT THE BOARD UNDERSTANDS THAT WE HAVE A COLLABORATIVE APPROACH TO TRYING TO ATTACK OUR DEFICIT.
I ALSO WILL BE LOOKING AT HOW WE HAVE IDENTIFIED CONSTRUCTION PROJECTS.
I DON'T KNOW THAT WE HAVE USED ANY TYPE OF TIERED APPROACH, MEANING WHAT IS MOST IMPORTANT, WHAT'S NEXT IMPORTANT, AND THEN WHAT'S LEAST IMPORTANT, BUT WE WILL BE PUTTING A PROCESS IN PLACE TO IDENTIFY WHAT IS THE MOST IMPORTANT PROJECTS THAT WE NEED TO FOCUS ON AS FAR AS COMPLIANCE AND ADA, WHAT IMPACTS TEACHING AND LEARNING THE MOST AND THEN WHAT ESTHETIC PROJECTS THAT MAYBE COULD BE PUT ON HOLD UNTIL WE GET BETTER FUNDING.
ALL OF THOSE THINGS PUT TOGETHER, WE WILL BE WORKING DILIGENTLY TO ENSURE THAT AT THE END OF THIS SCHOOL YEAR, WE DON'T HAVE A $17 MILLION DEFICIT. YES, MA'AM.
>> DR. LILE, THANK YOU FOR THAT.
THANK YOU, DOCTOR HORTON AND TRACY DAVIS FOR YOUR PRESENTATION AND LETTING US KNOW WHAT THE DAY IN DAY OUT IS GOING TO LOOK LIKE.
I KNOW THAT DISTRICTS AROUND US HAVE RESULTED INTO CLOSING CAMPUSES, AND GRAND PRAIRIE ISD HAS NOT HAD THAT CONVERSATION WITH THE COMMUNITY AND WE HAVE NOT HAD THAT CONVERSATION JUST AS FAR AS WHAT THAT LOOKS LIKE FOR US, BECAUSE WE HAVE NOT CLOSED CAMPUSES OR THINGS OF THAT NATURE.
WHEN DO YOU EXPECT FOR US TO HAVE THAT CONVERSATION? MAYBE THIS IS THE QUESTION FOR DOCTOR TRUJILLO, JUST TO BE TRANSPARENT WITH THE COMMUNITY BECAUSE WE'RE TALKING ABOUT 22 MILLION OR POTENTIALLY $17-22 MILLION BUDGET DEFICIT, AND WITH THAT, WE KNOW THAT THE MONEY HAS TO COME FROM SOMEWHERE.
I'M ALL ABOUT EDUCATING OUR COMMUNITY AND MAKING SURE WE'RE TRANSPARENT AS POSSIBLE WITH OUR COMMUNITY.
WHAT DOES THAT LOOK LIKE FOR US AS A DISTRICT WHEN IT COMES TO POTENTIAL SCHOOL CLOSINGS?
>> THIS CONVERSATION, THANK YOU FOR THE QUESTION.
THIS CONVERSATION BEGAN WITH THIS BOARD WELL BEFORE I CAME TO THE DISTRICT, AND TO THE COMMUNITY, I APPRECIATE THAT THIS BOARD PUT IT ON PAUSE TO GIVE TIME FOR THE SUPERINTENDENT TO COME ON TASK.
THERE'S A COUPLE OF THINGS THAT I WANT TO MAKE SURE THAT WE'RE VERY CLEAR AND VERY CONCISE WITH.
PROGRAMMING, INNOVATION HAS BEEN ON A STANDSTILL FROM WHAT MY OBSERVATION IS, AND SO IF EXAMPLE TRUMAN IS A CAMPUS THAT WE'RE LOOKING FOR AND WAS ON THAT CONVERSATION PIECE, IT'S SHOCKING TODAY TO FIND OUT THAT WE HAVE STUDENTS THAT ARE FILLING TO CAPACITY.
THE PROGRAMMING THAT WE JUST CREATED.
WE'RE NOT GOING TO BE HESITANT ON HAVING THE CONVERSATIONS.
I'M WALKING CAMPUSES DURING THE LAST TWO DAYS OF SCHOOL, AND I'M WATCHING CLASSROOMS THAT ENROLLMENT IS WE STILL HAVE KIDS THAT ARE NOT COMING IN.
WE DON'T WANT THEM GOING OVER GRAND PRAIRIE AND GOING TO NEIGHBORING SCHOOL DISTRICTS.
WE WILL HAVE THAT IN A FUTURE MEETING AS WE START EXPLORING.
WE HAVE PROPERTY THAT WE REALLY NEED TO TALK ABOUT AS WELL, THAT DOESN'T IMPACT CLASSROOMS. WE HAVE A BANK RIGHT DOWN THE ROAD HERE THAT WE OWN THE PROPERTY, AND IT JUST SITS THERE.
WE HAVE PROPERTY IN DIFFERENT PARTS OF GRAND PRAIRIE THAT I'M GOING TO ENTERTAIN CONVERSATIONS WITH, WHETHER IT'S WITH THE CITY OR WITH OTHER ENTITIES THAT OUT THERE ALONG WITH THE BOARD.
BUT WHEN IT COMES TO CAMPUSES, IT'S GOING TO BE A LITTLE MORE INTENTIONAL BECAUSE WE HAVE TO LOOK AT PROGRAMMING, WITH THE PROGRAMMING, HOW WE SHIFT PROGRAMS AROUND IF THAT'S WHAT HAPPENS.
BUT I WANT TO MAXIMIZE THE OPPORTUNITIES BY TAPPING INTO THE AMAZING ABILITIES OF OUR TEACHERS.
I FOUND OUT ABOUT THE BASS FISHING TODAY.
THAT'S A RELATIONSHIP BETWEEN AN ENTITY THAT'S HERE THAT WAS SITTING THERE WAITING FOR US TO TALK TO HIM, BASS SHOP HASN'T BEEN APPROACHED, AND WE HAVE JOE POLAK.
[01:25:02]
THAT'S THE INNOVATION THAT I WANT TO UNLEASH ON EVERY ONE OF THESE FOLKS SITTING OUT HERE THAT ARE WORKING IN THIS DISTRICT IS WE NEED TO BE THAT DESTINATION SCHOOL DISTRICT WHERE WE CREATE THE PROGRAMMING FOR THAT.THEN AND ONLY THEN WE WILL START LOOKING AT AND DIVING INTO CLASSROOMS INTO CAMPUSES.
THIS IS WHY IN LUFKIN, TEXAS, THEN LOADED A SCHOOL. THEY CLOSED THE SCHOOL.
YOU KNOW WHO GOT TO SCHOOL, A PRIVATE SCHOOL.
I DON'T WANT COMPETITORS COMING INTO GRAND PRAIRIE.
THEY GOT A GYM, CAFETERIA, CLASSROOMS, HALLWAYS, LOCKERS.
ALL THEY HAVE TO DO IS MOVE IN.
I WANT TO MAXIMIZE EVERY SPACE THAT WE HAVE TO FIGURE OUT WHAT WE CAN DO, AND THEN WE COME INTO THE BOARD TO DECIDE HOW EXACTLY WE'RE GOING TO DO THAT WITH OUR PROGRAMMING.
THAT'S THE THINGS THAT I'M EXCITED ABOUT IS THE STAFF AND THE IDEAS THAT ARE COMING OUT FROM THE TEAMS, AND WE CREATE THIS EXCITEMENT WITH OUR FAMILIES TO SAY GRAND PRAIRIE IS TURNING THE PAGE, AND WE'RE GOING TO DO AMAZING THINGS.
BUT PRESIDENT MOFFITT, IT IS A REAL SITUATION.
WE'VE GOT SCHOOL DISTRICTS ALL THE WAY AROUND US THAT ARE CLOSING SCHOOLS.
IT'S INEVITABLE IF ENROLLMENT CONTINUES TO DROP AND WE'RE NOT THE ONLY ONE ROMAN IS DROPPING ACROSS THE STATE AND A LOT OF SCHOOL DISTRICTS THAT ARE HAVING GREATER DEFICITS THAN WHAT WE ARE.
I'M NOT GOING TO SAY IT'S NOT GOING TO HAPPEN, BUT I WANT TO MAKE SURE THE COMMUNITY KNOWS THAT IT'S NOT GOING TO BE DONE LIGHTLY.
IT'S GOING TO BE DONE WITH THOUGHT PROVOKING PARTNERSHIPS WITH THE BOARD, AND WE'RE ABLE TO LOOK AT OUR LEADERSHIP, LOOK AT PROGRAMMING, SO WE CAN ARRIVE WITH THE BEST DECISION.
BUT I DO APPRECIATE THIS BOARD.
I DO REALLY APPRECIATE THIS BOARD HAVING THIS CONVERSATION WELL BEFORE I WAS EVEN A CANDIDATE TO EVEN LOOK HERE.
YOU WERE TALKING ABOUT THE CAMPUSES.
I APPRECIATE THE FACT THAT YOU HIT PAUSE LONG ENOUGH SO THAT THAT I CAN GET ON HERE AND THEN COME IN HERE AND START EXPLORING AND MAYBE REVISIT, JUST THOSE PAGES OFF BECAUSE THERE ARE SOME GOOD CONVERSATIONS THAT WERE BEING HAD BEFORE I ARRIVED.
I JUST WANT TO PUT FULL TRANSPARENT FOR THE COMMUNITY WHEN IT COMES TO THOSE CAMPUSES.
>> QUESTION, SPEAKING OF FULL TRANSPARENCY.
MISS DAVIS, I HAVE A QUESTION BECAUSE SOMETHING THAT YOU SAID WAS INTERESTING TO ME.
I'M EXCITED THAT TRUMAN WAS THE SCHOOL YOU REFERENCED, THAT'S WHEN WE'LL TALK ABOUT THAT YOU SAID THAT THOSE CLASSES WERE AT FULL CAPACITY.
WHEN YOU SAY THAT, IT TELLS ME THAT THERE'S A LOT OF KIDS THAT ARE AT THAT CAMPUS THAT WANTED TO BE INVOLVED IN THOSE AND THERE THEY ARE, BUT DID IT INCREASE ENROLLMENT AT THAT CAMPUS?
>> WE HAVEN'T STARTED MARKETING IT YET.
WE HAVEN'T PUT IT OUT IN THE UNIVERSE THAT IT'S AN OPTION YET.
THE KIDS THAT ARE THERE ARE LOVING IT.
THE TEACHER IS EXCITED. THEY'RE PUMPED ABOUT IT.
WE'RE GOING TO REALLY BE ABLE TO MARKET IT AS WE COME INTO IT.
WE HAVEN'T GIVEN PUT THE KNOWLEDGE OUT THERE FOR PEOPLE TO CHOOSE IT YET.
>> FOR DR. LAMB, CAN YOU KIND OF EDUCATE US ON ALL OF THE M&O PROJECTS THAT WE HAVEN'T COMPLETED YET?
>> WELL, LET ME HIT PAUSE BECAUSE THAT'S NOT A BUDGET CONVERSATION, AND THEY'LL GET MORE INFORMATION WITH REGARDS TO THE ACTUAL PROJECTS.
WHAT HE WAS TOUCHING ABOUT WITH CONSTRUCTION IS MAKING SURE THAT WE HAVE A PROCESS OF PRIORITIZING PROJECTS SO THAT WHEN THE BOARD KNOWS THAT THERE'S PROJECTS GOING ON, THAT YOU HAVE BUDGETED FUNDS AND KNOW THOSE EXPENDITURES ARE TAKING PLACE.
BUT ACTUAL PROJECTS AND WHERE WE ARE IN THE SUMMER IS REALLY OUTSIDE THE PREVIEW OF THIS THIS MEETING, BUT WE WILL PUT THAT IN CONVERSATION WITH THE BOARD AND ALSO WITH THE COMMUNITY BECAUSE THEY'LL HAVE QUESTIONS.
ACTUALLY, IF THEY TUNE IN, JUST HERE A MINUTE SHORTLY, THEY'RE GOING TO HEAR AN UPDATE WITH GRAND PRAIRIE HIGH SCHOOL WHEN IT COMES TO THE CONSTRUCTION THAT WE HAVE THERE, SO IF YOU ALLOW THAT TO OCCUR.
>> DO YOU HAVE ANYTHING GOES, DR. LAMB?
>> THANK YOU. WITH THAT BEING SAID, THE TIME NOW IS 7:01, AND THE BUDGET WORKSHOP MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.