May-13-2019-Budget-worksession-Segment-1
[00:00:00] Meeting of the budget committee to order first thing on our agenda is roll call.
Eddie Reynolds. chair Fitch here as chair hides here director Molitor here Chelsea King Martin here. Craig Nelson here in chemical. I hear death Hallin here. Kristen Wyatt Steven Owen here.
I am going to Dad turn the meeting turn the next item of business over to school board chair pitch. Thank you. I'm a local attorney and I represent student and parents who reside in the district should anything come before the Border this committee that materially benefits one of my clients specifically [00:01:00] I would refrain from taking part in that deliberation and any decision without revealing the identity of my client.
I want to welcome those from the community who came to speak tonight. It's our desire to encourage you to comment to share your opinions with us. The time is used for us to collect information from you rather than be able to respond to you in the moment, but make sure we have your contact information either on the sign-in sheet or give it to Miss Douglas so that we can follow up with you if we need to.
If you're asking the the District of board to take action again or provide information we can do that then. When you come forward if you give your name and your address at the podium, and then you have 3 minutes [00:02:00] to speak if you want to provide further information, you can do that in writing to Miss Douglas or through email to us and we'll share it out.
If you have concerns about providing your information name and address, let me know and we'll address that. If you have concerns about particular student or employee, there's a different process for that. So we would ask you from refrain from using this as a time for complaints regarding that. If I feel that you're violating that I'll interrupt and we'll have a private conversation and be able to redirect because we take seriously the duty we have to protect both our staff and our students in a public forum.
Oh this morning want to come forward?
Yeah, [00:03:00] sorry. It's how it works tonight.
Hi everybody. I have to third graders at Cedar Oak. And I thought that I was just signing in because I was going to be here so I don't have any prepared comments or anything, but I just want to say that both of my kids are need special education. And so that's very important to me. It's a big reason why we moved to this District because West Linn is so great at being inclusive and providing the supports that they need so I really.
I strongly believe that it benefits everybody in the classroom when they have the supports that they need in order to learn and in order to interact with the community that they will graduate in two. So I really encourage you to do what you can to maintain that level of support budget. Thank you fast occurrence more 4020 Mapleton Drive.
[00:04:00] Inge my name is Katie him I live at tu-95 for Southwest Milano Lane and I want to start by recognizing the district's recent actions and efforts to reduce the use of pesticides with the use of the fence guard and other measures the spray notices that. Got out recently across the district having a little disheartened.
It seems that jury decisions or earning enormous sums of money to people harmed by glyphosate are coming more and more frequently across the news and today was no exception a superior court in California awarded two billion dollars to a couple who developed cancer after using the same chemical that we use just by Across The District on our children's play areas.
They're more than 13,000. More lawsuits in the us alone right now. And I don't want Wesley most milk to be [00:05:00] next so District staff and the board have commented that other less harmful options are cost prohibited under the current budget cycle. And today we have the ability to rectify that so we can send our children our teachers and our staff to learn and work and play in a safe environment.
So I'm just asking and urging the budget committee and board to direct resources to the district landscaping and Facilities so that we can avoid an accident that puts our children's health and safety at risk. Thank you so much.
Her evening. How are you guys? Thank you for having me and for having us. [00:06:00] I'm a portable speaker. So. Hence, my notes here. And my wife just informed me about 15 minutes ago that I was going to comment. Just thank you why so first off I want to thank you guys all for what you do here for the for the District Food Service that you provide.
It's really critical and I recognize it's a difficult thing for you guys to make some tough decisions here. I wanted to highlight the fact that it's been a while if at all since you've any of you have performed significant janitorial duties here at the school, and the reason that that's important is because that freeze your time to be able to perform these really critical decisions and make the plans that you guys have and then like ways I've got two kids.
One is at Cedar Road. It requires a substantial amount of support. She's a very complex kid and is absolutely Paramount that she has her [00:07:00] instructional assistant at her side in order to be successful in school and my fear is is that.
My fear is is that as a very easy target as an IA could be. To make those cuts in those really difficult decisions that that absolutely is going to affect directly students like my daughter who's a very complex kid, but then therefore indirectly so our entire student body population and therefore also take the focus of the students teachers away from the important jobs that they're doing much like you guys are doing your very important jobs as well.
So my goal tonight is just to highlight the incredible service that ra is performed for the complex students like my daughter, but then also indirectly for our entire student body guided 4,000 Mapleton Drive.
[00:08:00] Thank you for having us and I just second what he said. I know that. Each of you guys that take the time for a phone call and email a community meeting all the things we value the role that you have in our district and for our children. My name is Margarita Kiker and I reside at 60 109 Cantor Lane in West Linn, and we're aware that as a district.
You are having to reduce your operating expenses by approximately three and a half million dollars. And that's a lot to say. I was just shocked by that number. I can't how do you do that? Like how. I know that I truly believe with my heart that your heart is what doing what's best for children?
It's just I think like in our family we talked about in our budget what are [00:09:00] our wants and what are our needs you know, and how do we allocate those funds what our true wants and needs and obviously people are going to have differences of opinions, but I think we want to highlight. At least what we feel is a need that maybe you might feel as a want and the any request to add Services means that you will need to cut people staff and programs to accommodate new requests I'm sure that the district is already having to eliminate teachers and support staff and we'd like to request that you support students in K through 5 specifically in classrooms which experienced disruptive and aggressive outbursts not to be reduced during the budget process and here's why.
Number one. I know that three out of the five people in this room have person that I personally talked to or have shared a story have personally experienced disrupted classrooms that have affected your children's learning environment. It's time to stop saying that what you're doing is working at admit that change needs to happen and that as a district we can do better cutting staff to these classrooms will only make it worse.
You're prepared for fire drills fencing around the schools lockdown drills [00:10:00] evacuations all of those things that happen rarely to almost never but and we want our kids to in our teachers and our staff to be prepared for that and we're grateful for that the funds that are allocated to make us feel safe as we hear things on the news but these situations don't happen very often and as a district are you properly allocating funds to keep classroom safe during their normal daily routines restorative circles are not good enough.
I've been in the classroom when that happening and it doesn't work. It doesn't work long-term. That's not the solution classroom clears head phones iPads and rewarding misbehavior is the normal instead of a teacher instead of fixing the problem. That's that's what is instead of $1.00 being allocated to that.
That's the solution currently conducting limited support staff is not the answer. I have number two. I've been made aware of a student that was tested through the student services department and his I'm not going to share his name not going to see our teacher or his. It's just a student. I have 50 stories like this.
So I'm just picking one.
It talks [00:11:00] just about Cassie. I'm not going to say specifics. I promise. I know the rules
just share what you want to say without referring to I know about student. Okay, there's a. Somebody in this District who is tested at a beach you so at a level below grade level due to being in a violent classroom his emotional psychological Health was threatened daily and he wasn't able to learn or concentrate or test properly which testing and making sure that students like what it says here that they can be so I'm how I'm going to I think given that verifying that information it would be hard to.
Explain in this group because we're talking about confidential information about testing a student how you got that information is all should not have been shared with a parent. So unless the parent that child shared it with you. So I think maybe move on to another point.
Well, I will personally email you that [00:12:00] students have the opportunity to go from below grade level to at grade level and meet their potential. If they're in safe classrooms and can properly learn. And teachers need the support to keep their students safe and to be able to to be able to have been the necessary skills that they need in a classroom when their psychological their health or emotional health and well-being is threatened every single day and they're in that hostile classroom environment environment a student can't test properly they can't learn properly.
And it say in a few months later if they were in a proper classroom that did allow them to learn you can see a major difference. It is drastic where that it's not even possible to see that to have that change just by like. Oh, well, they learned that much in three months. It's because of the environment and lasted just want to say that at the last board meeting.
Thank you for opening the door for conversation that classroom crisis is happening. But in my opinion you guys didn't you failed to communicate both? [00:13:00] And have a clear representation of your parents and your families in these communities classroom crisis is a major issue in this district, and it's affecting classrooms all over and we just ask that you truly please in the when you're choosing to make these decisions in allocating the funds that you choose to protect these young children where available in the budget decisions that you're about to make.
Thank you.
Thank you. I will John McCabe for 3-5 Southwest Michael in West Linn Oregon 9 7 0 6 8 I know. It's too far away, but I don't know if anybody brought it up. But on the general fund budget the penalty and interest on local option has got to be a typo. That's a thousand [00:14:00] percent off. It got moved over a decimal place because when you consider only a $6,000 is for prior years the penalty and interest can't be 25% of that.
It hasn't been in any year. So that does reduce the revenue. High School activity fees I'm assuming it's only going to be on Sports because that is a substantial increase over what was budgeted for last year.
The other one is on local option Jeff. I think you remember when I was on the bench make committee for and I was always the nail the local option dollar amount. It's not going to be that amount. I'd rather not say what it's going to be. Because we can use all the revenue we can get and have as few program Cuts as possible, but it's quite different a lot different because when those were here earlier this year [00:15:00] when Piper jaffray came in and they did the.
showing the increased assessed versus market value and the market value and assessed value was very close. It was only three point nine percent. This allows very little room for the local option to move. I know what it's going to be at. I don't want to make it public the other issue that causes a high level expenses is a health benefit.
The health benefit in here is budgeted correctly. However, what happens is through the year which comes in the monthly financial statements is. There are certain people that don't take out the highest level of Health expense and therefore the amount that the school district cancer pain can be and has been substantially less one year with six hundred thousand dollars less this I was about like three [00:16:00] years ago.
So it's an item that basically we can we know we have more room that will go to the ending fund balance of the end of the year. And when speaking of ending fund balance, I see somebody some people have computers. I do not know if their Wi-Fi you can go to the Oregon Department of Education. So I'm not being misleading here.
But the school district this Wednesday is going to get an additional nine hundred thousand dollars. That's nine hundred thousand dollars more to the ending fund balance for this year. The $900,000 is from. 2017-18 they've reconciled it all and it only came on the internet this weekend. I had never seen it before I saw it when I saw that $900,000.
I'm like that's 900,000 more of the end of cuts. We don't have to do and if anybody questions me they can look it up. It's out on the [00:17:00] warrants that will be issued which will be this Wednesday for an additional nine hundred thousand dollars. And then at the last budget meeting I brought up that basically when you take what's coming from the state what's coming out of?
Property taxes through April is about an additional million dollars. So we're looking at the 3.5. We've already tight taken off a million really taken off 900,000 and if you guys want to wait till Thursday. I know if my figures are correct, which I've taken a lot of time to do it. Maybe we don't have to do these Cuts.
I know we don't have to do these cats and the thing that's great about not doing Cuts. It's great PR for the local option that's coming up. We cannot do without the local option that local option is equal to two primary schools toll Staffing and if we have to go into [00:18:00] the ending fund balance. To get the local option past it's worth the effort the Portland Public Schools their ending fund balance for this year because they don't know where the state's going to go is going all the way down to 4% and publicized its out there other school districts are going even lower than that.
we shouldn't be any different we should keep as much the program is possible our kids need it they don't get a second chance we do they don't thank you.
Thank you Sheriff. Now, we'll move on to the budget committee deliberations and have a presentation from Miss Hughes and dr. Ludwig Ludwig.
[00:19:00] I'm so excited to share information. So I forgot to turn it on. So good evening. Thank you so much for taking the time to Sandra question in advance and gives us the opportunity to respond. I know there are some question coming in later and then we will be happy to address that so the budget book the budget document that you have with you over the last three weeks.
That's it our proposal. The reason we call it proposal because on board member having a Bluefish. Yes, and the state legislation is still in the section in development for Educational Funding currently as you know, the committee [00:20:00] on Ways and Means had released a point 8 7 billion budget for education.
There's possibility that the money they did dollar can change. So we waiting for me 15 and then come and lays in August. So we schedule a meeting tonight and then if needed we schedule another meeting on May 16. And then the school board will approve and adopt the budget by June 10 during the regular board meeting.
So the expected outcome for tonight's is. We want admit in to ensure that our School District budget document fairly proficient Oregon budget law requirements which until a methods for control of revenues and expenditures that promotes efficiencies and economic when using puppets fun so [00:21:00] that's a dumb most important aspect and outcome that we would like to have.
so on half number. 3 you will see the financial summary this financial summary show us that our school district. We have a total of four funds. The first one is general fund acid major funding for our operation that stepped over 67 percent of our total District budget. The second one it is special Revenue that represent 11% depth surfaces purpose and 17% and last Capital project and construction at that 5%.
So the budget the overall budget for West Linn Pearson VUE say one hundred seventy seven point four million.
[00:22:00] So General fun send generals one is preposition of it portion of our total purchase. So I would when we focus on General on fun, we should remember that general fund play Christian ritual grow in now over on budget and also Governor budget. Has a direct impact on our General Revenue. So when you reach review and the general information, it's important to ask ourselves a question though is the decrease spending match the district investment strategy.
You'll find investment strategy under doctor's our superintendent budget masses another second question. We should ask is third budget. Papa we arrest the poorest in Greece because we know that for this comment by any failure we are facing [00:23:00] the full race in Greece for 1920 19 to 20 20 we have about six percent going up in Perl so that is about 3.5 million.
and number three is insert a focus on line by line detail its. Better to focus on the overall program because of our own program go tell us more story of how we doing at the literate at home last but not least as ourself question. Those are district general fund have an appropriate ending fund balance.
Because sometime we have good ending fund balance for the first year, but that doesn't mean we have appropriate ending fund balance for the second year in a row biennium.
This student grow enrollment graph this one represent for the last [00:24:00] five years actor average daily membership. So I would like to show you the student enrollment. No contacts option and as say spoon fun environment gonna. no contacts option also gone up and then the says Kun fun also give lot more money because last biennium we have to a point two billion this biennium.
We have a point a seven billion. So come back to here. Student grow in every year. And then for the last five years you see that we grow from ten points ten thousand 791 for the average daily membership to 11060 student to 11,000 216 to 11,000 [00:25:00] 125 and for 1920. We estimate to have 11240 a student.
Need a weighted. Yeah 9990 a suit. What a local option tax is also go up from 5.2 million in 15 16 to 7 million in 1617 8 million in 1718 8.9 million in 1819. And at the mess for this coming year say 9.9 based on 13 percent increase.
This information we receive from Oregon Department of Education on March 18. This one based on 8.8 billion with a point eight billion. We expect to have 38 out thirty eight point nine million in property tax.
[00:26:00] Property taxes are collected locally to fun School. And then this command School Fern is part of the birth chart of the u.s. State of all of God of Oregon it device from the use of States land dedicated to public school.
This information right here the property tax and this number 96 million. This is they have a tariff direct relationship. If we have more property tax than just sighs Coon fun for a little bit less. And then if we have less property tax than deficit million will go now. So in here with the a point a 7 [00:27:00] billion, we will have thirty nine point eight million in property tax and 57-47 put this 56.7 million in the state school fund.
This information is under tap 3. Financier summary.
The first one is a general for this is general fund only. The first one is revenue. We have begin in pain balance SMS at a million. This a million already included 2.9 Million per reserves that we have because for last year when we close the book and turn 30 years the auditor decide to move out 2.9 Million Bond special Revenue into general fund so that quiet in [00:28:00] here when we had a beginner, but carry forward from last year to this year the estimate that I have here including doctor.
Nine million. So with that age million carry forwards from last year to this year estimate we estimate again to have 1.9 million in fees and tuition 412,000 interest income knifepoint nice and local property tax. 1.9. This is the information the allocation that clackum fasd will. Can't talk to Russ and then 96 poison.
That's a including 38.9 from property tax and 56 from say schoon fun visitor combined together. And then we estimate to have addition some additional student. So the total revenue estimates a 111 [00:29:00] points it million plus a million in carryforwards. It gives us the total revenues of 119.7 million.
This furniture down here salary we factor in the caller the step. And the copay and then on the benefits were also factor in the benefits increase from this year to next year. We also factor in the 3.5 million. Utility Services transportation is 5% gone up if you look at top two on the budget process.
And the last page we have budget assumption in that is fell out. We have salaries by percent increase benefits by percent increase 3 [00:30:00] .5 million increase in power utility service jump rotation and Supply. We have four percent increase and then the last one insurance and fees that they address to give them a Bible Cent increase this year.
So all of this, when did your act up is 100 13.6 million. So if we take the revenue total revenue 119 million mine at 113 million if you press the estimate ending fund balance of 6
million. Also end up but cat assumption the first one that I sent out to you. There is a typo on the last year 18 19 under salary and [00:31:00] benefits would be 5% and set up three percent. So there is a new information on your table to replace
that. Yes,
yes. So we are submitting a balanced general fund budget of 119 for 7 million based on a state funding level of 8.8 seven billion this is a very lean but judge Desmond why we working with the Rowan and Roman in Greece in poverty low contacts and an increase in the [00:32:00] state's scoon fun. We still not have enough money to cover all of this furniture and blow up the pole race going on.
So in order to balance the book because we have 3.5 million in call rate increase. We have a deduction of 3.5 million in our expenditure. And that's when you read the message from our superintendent. She mentioned that in order to capture 3.5 million reduction. We plan to reduce licensed staff by 18 fda's.
Reduce one administrator to non-classroom position and about 12 classified
[00:33:00] position. So Dance all about Channel fun fun. I will move onto this is Faso Revenue fund. That's all revenue fund. We don't have much control of us because this money we receive from state federal and state. They have a guideline and regulation for us to follow but there are a few questions from board member and budget committee asking about the contingency.
We have 9 million here. Point eight million out of that 9 million belong to land cell that we did last
year. So with this one it before ever decide to move some of that money into. General fund to support what operational expenditure [00:34:00] then we need to print our autonomy in to talk about the process and then the auditor will have plus trend for the fun in from one phone to another fun. But for the past practice, we alway good blend sell money in one place in that fun because we always want to reserve.
Plenty of money for the future by if we combine that money into our general fund. It's easy for us to miscounted similar to the power Reserve, you know, when we give it into space separated away from general fund. We know it out there in general fund. Question last year when commingled combines into general fund is easy for us to forget about it.
And then assume that is the money we have and it's easy to spend it [00:35:00] all. Deaf services and capital projects are done last two point that we have depth Services you for accumulation of resource and payment to our general obligation and four bonds principal and intrat. So if you look at the reference on
top. Fi reference material. On the last page, you will see the summary information that I have on all the bond that we have because I do number in the past several board member ask me question like what our outstanding Bond so that's the last page the last page on the reference
material. Upon redeem Shannon include
[00:36:00] requirements. Say that. Yeah, so that's information. For example on the left hand side. You will see her pension Bond 2004. So by 20 27 and 28 we will pay off that Bond bond that we used to in 2003 by 2020 second and 23 we will pay off that bone right now we just pay up 2009 Bond and the 2015 born we have to wait all the way until 20 32
33. By the way, this is the
one. Sit right
here. okay, [00:37:00] so this is just a refresh and reminder for us that. The more saturated bone and policy the budget reflects the resource and expenditure to implement those gone the budget committee Shorthorn one or more militant for following purpose first to receive the but rat messages and document what we ditch on April 22nd, and then second was it to deny to provide member of populist what an opportunity to ask questions and comment about a budget.
The budget committee row is 2 here the budget message to hold Public Myth in here and consider puppet comment discuss and revise the budget if necessary to meet the goals and priorities set by Bohr and last but not least to approve the budget. School and Bob go on Raw adapt our policy [00:38:00] that curve golfer fiscal management set District goals and budget priorities require a budget officer to explain the estimate of projected Revenue expenses by land and a large particulate priority and bones.
So with that. Tonight we present the proposed budget and then may sit in if we need it we will have another meeting and then May 24 is the approved budget and that's the time for me to send out a publication to paper and then on June 10 does it a budget here in
another. but now we open for question. Before we open it for questions. Dr. LED. Would would you like to explain kind of what what the latest developments are from the state? Alright. Well, I think by now many people in this room have [00:39:00] heard some great news from our legislators House Bill 3427, which was proposed by the Student Success act committee that put forward for additional revenue for.
K-12 schools it did pass the Senate today and it passed the house a few weeks ago and then just today passed the Senate so that takes it now to the governor to sign what house bill 3427 proposes is a tax revenue package that would create more funding that would come into the state and that funding would be specifically earmarked for K-12 schools.
What a two billion dollar package one for each biennium 1 billion of that would go towards a number of specific initiatives class size reduction support for students around mental health and [00:40:00] counseling expanding learning options and expanding learning time. So learning options when we think about.
To curricular areas that some districts have not been able to even restore back since the recession as well as some other CTE options that may not be sufficient enough for measure 98. So some work around that the other 1 billion would be divided between some early learning as well as other initiatives at the last board meeting.
I gave out a flyer on that and maybe out. At a break get that back to the whole committee if you'd like to see the details. So what does that mean? What's going to happen now is a long process to see how do you get that funding and turn it from a bill into implementation and funds for school districts.
And unfortunately that takes time much like a grant people are going to start to write conditions. They're going to take the verbage from that bill and put it [00:41:00] into practice for the school districts around how to take the funds. And how to implement them with the accountability measures would be how the state would monitor the outcomes.
So those criteria will be drafted and written typically by some committees and then some back-and-forth work, but we could see the funding then appropriated by Spring of next year for what projections are. The earliest would be not this fall, but the second year of the biennium. One of the factors that we need to keep in mind is that it could go to the voters for a referral and that because it involves a tax package if legislators decide or anyone decides that they like voters to take a vote like what happened with measure 97.
If you recall when there was another similar proposal for tax package, then there would be the drafting of that and it would go before the voters. If it's overturned by [00:42:00] the voters, we wouldn't see any of that. It would just end at that point and could be brought up again at some point by legislators again, if it's not overturned and it's upheld then we would continue to just keep expecting that those funds will come in.
So all that to say we're still starting the year. Where we are with what you've heard but very encouraged by what could be coming. And so that's something to consider tonight and be thinking about and yet live in living into the reality to that. There's some factors there that still could go in front of the voters about whether the voters want to pass House Bill 3427.
We know that our elected officials have passed it could go before the voters. Um additionally as I've mentioned to this group the governor had proposed eight point nine seven billion [00:43:00] The Joint Ways and Means Committee came under that and came in with eight point eight seven billion. It could be based on the March 15th, Revenue, May 15th revenue forecast.
Or other decisions that the joint Ways and Means Committee could go back to the governor's proposed 8.9 7 and add that increase to school districts that little bit of increase would translate to about 750 thousand dollars for us that we would certainly apply right away into our general fund. So that is a place where we could see some immediate Revenue increase between now and the start of school.
But just wanted to we're excited about House Bill 3427. It is historic that something that significant and that could be really transformative for schools. We heard tonight some real poignant comments [00:44:00] about support for students. If you've read through this survey information that I gave you that came from the webinar parents talked a lot about class size is a commitment to all the programs when you look at it cumulatively.
Nobody wants to cut anything and there's a real commitment to what's going on and particularly support to students. And class size I think was a trend there. So we've got some real hope coming on the horizon. In the meantime. We do have to live with the eight point eight seven as far as we've been told today, so.
Thank you. Dr. Ludwig. Um V before we get into questions as misuse pointed out. I mean the budget committee our role here is to review the proposed budget and make sure that the goals of the district are being met. We approve the budget but then it's up to the board to adopt the [00:45:00] budget as a budget committee when we when we think about the goals of the district.
We don't set staff salaries benefits and we don't decide whether or not a particular program is kept or or created. So so I think what we want to do tonight is to make sure that the members of the committee understand the budget that are questions are answered and then our goal tonight would be either too.
Um decide we need to reconvene as scheduled on the 16th or go ahead and approve the budget and. option the board. I believe also has the discretion to change amounts in the budget between funds of up to 10%. So. at getting down to you know finite details, but but if [00:46:00] you do have questions regarding any details, you want to make sure that their answer.
Anybody have questions on the