May-13-2019-Budget-worksession-Segment-3
[00:00:00] All right. Thanks. We'll get them the meeting going again. So I just want to let the rest of the committee members know we will we will have a chance to continue our questioning but first I'm going to turn it back to chair pitch. Or some additional questions from the attendees here. Alright, thank you Miss Burton and I just want to point out that normally we have a seven o'clock time for public comment, and we just want to respect our public to have a chance.
[00:01:00] I appreciate the moment. I know some people have already got a chance to speak. I've been in the school system in primary Middle School in high school for the last 15 years. I am that parent that is involved in everything and it's not I'm not saying that the pat myself on the back but I'm a fly on the wall.
I see everything, you know, and the things there's been a. I feel there's been a shift in 15 years ago versus today just being involved in the parents I've had a fabulous experience my kids are doing fantastic but I don't see that around me the message that I in the pulse that I am getting from parents is there is a huge shift in behavior problems that are escalating in growing and with that I'm hearing from parents I had a child that was a great ahead.
Shifting to now they're at grade level now. I'm spending my own money. [00:02:00] I'm going to summer school trying to get my kit at level and why is that my child doesn't want to go to school. My child is stressed out and I'm here to Advocate that you know, I see the numbers on the paper, but I don't think they transcend what is happening in our classroom.
What makes the most sense? I am in the school and I see how different staffs the number of staff that we're hiring. I seen a certain group level that is growing and I'm specifically talking about iaas and when I'm in there and I'm seeing that they're assigned to a special needs person. They are being pulled from that person and distracted at a crisis happening over here a crisis happening over there.
And so what I'm advocating for is what looks better on paper. I'm imploring you please do not cut the iaas those teachers need the supports. They can be in the classroom to teach they're [00:03:00] not getting the time that they need. I'm taking classroom homework not for my own kid. I'm tutoring The Neighbor Next Door.
I'm tooting other people's kids and they're falling behind and I'm seeing this shift in every year. It's getting worse. I'm glad we're trying practices, but I don't see them working. I know there's transition any time you try something new, but we need more. So if anything I implore you please don't cut the iaas if you can find it in the budget someplace.
Those teachers need support those kids. They need to feel safe. They need to feel like they want to come to school and learn and I don't want that squashed. I'm worried about our future and I don't want to look come back to this meeting in 10 years ago. Now we have research we can look at look how the greats have fallen.
Look at our percentages. I don't want those kids to be an experiment that are right now in school.  Thank you.
[00:04:00] Okay, I'd like to turn it back to dr. Ludwig for some comments before we open it for additional questions as we were looking through the theme or the trends of the questions from the budget committee. Now you've heard from those who have their other questions one of the asks of us was. Could you kind of look ahead of the document in and let us know where the big changes are and give us some information about those changes most of those you picked up on and you ask those of us the most common one was where would we see those FTE shifts, you know if we had to make those reductions and.
Tried to share with you that where you might see them in the license may not be where they land. But I do want to draw your attention to those other areas that had to do with program so you can see where those are and then we'll just take questions from there. So my [00:05:00] budget message, I mentioned the FTE then the other part for the reductions was around curriculum and professional development.
So if you look on page 43.
Function 3:19.
last year, we had adopted and 2018-19 about 90,000. I believe we actually may have even overspent on that and then you'll see a dash for this year that's part of in my message where I mentioned about we would be reducing professional development opportunities for teachers as another place to make reductions so that's one there on that same page down at 420 where it says text books.
You'll see that some years. There's a large purchase and some [00:06:00] years there might be smaller depending on if we've shifted to something online and then that would come out of software. So you just have to remember that text, you know, the use of textbooks shift as we get programs and software as well and online versions for things and then it can come out of different budgets last year.
You'll see adopted we didn't put an amount. Because we were using CET funds for that as well as some software instead of putting an amount back in this year. We've also kept that line item closed and we are not going to do a curriculum renewal this year. We've suspended that but there are some promises we've made to staff this year and through the summer workshop that we do need to supply textbooks and we'll take that out of CET.
So that's the other big reduction there. We won't be spending, you know, two hundred thousand or a hundred fifty thousand therefore for textbooks this [00:07:00] year. And we believe we we have the funds in CET and we can cover for the promises that we've made. We're just not going to start a new renewal.
Okay, let me can I ask you a quick question on that? Yeah. So while we're here it looks like 121 and 123. We've got a year-over-year jump that appears to offset kind of most of what you called out in reductions. What are those?  Temporary license staff looks like maybe two. Two heads what page are you on the same one page 42 top howdy to on the top ever Rose is 121 and 123.
For substitute salaries and then temporary license as well. Yeah, I think that when I have to look and see.
[00:08:00] I think that might be out of student services. This is a student service if they did yeah, Jennifer, so that's either ID. That's Jennifer. Could be.
Let me see if I can clear that up a little bit. Really. That's those the 1 2 3 are what we call paycard addition. So when we bring teachers together outside of their regular work day to do some additional work or additional professional development. Sometimes we've had some workshops that go between four and six every Thursday for certain [00:09:00] amount of time and we.
Them for that time rather than pulling them out during the school day when they were be a substitute. Then we would have that substitute cost but then it's also impacting the students because then they have a substitute in their classroom instead of a teacher so doctors Tyson and dr. Downs and dr.
Pryor been really trying to when possible do some of that professional development in that additional pay time or sometimes events in the summer for summer summer curriculum Camp work in this since this is that's what that would be 4 so that means that answer your question. You
just stay open.  Do you want to come
up forever?  We'll go ahead and invite doctor soy sin. And dr. Spencer irons because as you get into qas if there. Are there questions that they can address [00:10:00] that pertain to their departments and staff and helpful to have them here too. I do have one question about something you said earlier. I don't know if this is a good time to jump in or pure moving on to something different.
Oh hon, okay with the professional development cuts that you showed us, dr. Ludwig. That's not the professional development time on Wednesdays. That's such as speakers or Consultants or something else besides the time at these would be when we conduct our professional learning opportunities and workshops here.
We did not change the calendar and change professional growth. Wednesday's something like that would take a board action. It's also part of a contract with our licensed associations the adopted calendar. But this is when we might bring up Middle School Math teachers or High School social studies teachers.
We've done a lot of work around renewals and we're going to take a [00:11:00] pause with some of that in terms of bringing large groups up and instead the team is committed to getting into buildings and giving a lot of feedback on implementation next.
Hey, we'll move on so I just want to point out that thank you to the rest of the committee members for pre submission of your questions. I think we have 15 pages of QA which misuse and dr. Ludwig have answered and these are available on the website. So I do want to now allow the committee to ask either further questions or clarifications of the answers or any other commentary and I'm going to recognize director Heights for for some comments first.
Thank you. Sure Helen. That was very quick question about the Blended classrooms. I know some parents having [00:12:00] anxiety about their children being put in a blended classroom and I was in summer excited by it. I was won by just my understanding from the past is that when we have Blended classrooms that parents have the choice of if they don't want that for their child that they don't have to have their child in a blended classroom is my understanding correct and it is that will that continue in the future?
Yeah, and I just want to be clear that that was an example. We don't know if we'll need to create. Or would or want to create new ones next year based on the budget. There's actually a lot of good research around Blended classrooms, and we are seeing some data from a number of our schools where.
There's increased learning and when those classes happen, but the conditions have to be right, you know teachers have to feel they can teach in that environment that they've got the right instructional practices if they feel supported and I think the more family feels positively about it those conversations with students in the support of that classroom just increases the likelihood [00:13:00] of that success, so when those things need to happen, and it's not.
Even often in a year like that we're looking into but any year where we just get some new move-ins and we feel like we can bring some of the numbers down and maybe create a small environment. Typically a principal will send a message out to the families and give the opportunity first. If you'd like to opt in, you know, let us know and we often get enough families where that happens.
Um, and then there's times when we could do some follow-up conversations if there's a situation where a family is absolutely determined that this is not in their child's best interest. We, you know do our best to make a different accommodation. Thank you. I wanted to start a discussion with my fellow budget committee members about the general fund balance right now.
We're looking at a six million dollar general fund balance, which is about five percent of our total budget and recent history of this organization The District budget committee the board. As far as I can tell it's that there hasn't [00:14:00] really been a deliberative decision on it was what the ending finding balance should be.
It's just kind of ends up wherever it is with some people in the community saying it's too high. It's too low and I like to see us as a body be more deliberate about what we want. And so I think the first question is what's the value of an ending fund balance and I've been reviewing materials from the OSB a in preparation for tonight.
And what I what I what I'm seeing is that it just allows you to absorb. Unforeseen events, whether that's reduced revenue or increased costs and example. I found is that in the O2 o2o4 biennium when there is the revenue for the state was much less than expected districts that had healthy ending fund balances could continue the year as expected whereas some districts had to cut cut calendar days from their school year because they didn't have the money to keep their doors open.
So then what should our ending funny bunny bound to be from % OS be a says. Eight percent the government Finance Officers Association says [00:15:00] 5 to 15% and they give some guidelines as to how you determine where you fall within that range. One is the size of your district is as a general rule the small the district the larger percent should be a larger District can absorb things easier than a small district and and second factor is the degree the greater degree of economic uncertainty the larger you want your unending finding balance to be.
I look at our district. I see more a medium-sized District. So maybe somewhere in the middle of that range, but I see a lot of economic uncertainty is our bond going to pass. I don't know is a local option letter D going to continue. I don't know. What we do know is that our pers obligations are going to be increasing every year for the next 16 years and then maintaining for a period of time that we don't know and the and right now we're.
The current longest period of economic expansion the state has ever seen. How long is that going to continue again? We don't know and so My Philosophy with this organization is that in Good Times you save and [00:16:00] bad times you spend and so.  Where I would start the discussions, I think that it makes sense for us to be saving right now.
And so I would like us to decide that. At this time we should to be taking no steps to reduce the current ending fund balance as where it sits and that if we obtain additional money through increasing revenue or the legislation that's sitting on the governor's desk assigned and that results in additional money that we make it an unofficial policy to aim for an ending fund balance of 8% which is on the lower end of the.
Government fans associations recommendation but the higher end of OSB a and I wouldn't want to make it official policy I don't think so I think it's important to remain flexible as the economic things change because it's kind of a rule of thumb based on what we know right now I think it'd be a good idea to keep it where it is and if more money comes in try to get it up to 8%.
so Bots. Miss Hughes, what is our [00:17:00] percentage in this proposed budget the ending fund balance?  So it's about four percent.  and infant balance.
A 2.9 Million. Yes, so to the sit million estimate ending fund balance form 1920s is about 4%.
With with fun measures coming up our proposed Bond measures. What do the rating agencies look for for an appropriate ending fund balance when when trying to achieve an adequate rating for for a new Bond?  Well, I think our. [00:18:00] Probably closer to what director hides mentioned in that gfo a area.
Although they will tell us that our district is unique and that we have a higher rating even though we've had traditionally a lower ending fund balance and that has to do with our community and our track record of passing bonds and local options. And so the risk factor for this District then decreases and so we've been able to have a.
A healthier rating even with a lower ending fund balance just a reminder that the 2.9 Million in the reserve got put into the ending fund balance. There is still an additional one point one because if you remember the total was four million that is in which account is in a special Revenue debt services that is that is there you could decide.
To transfer this year if you felt you'd like [00:19:00] to with the hopefulness of this house bill 3427 at the same time. There. Is this Wonder out there will it get referred to voters and overturn just like with measure 97 there seems to be more optimism that it will. Um hold there's a lot of momentum around the state and I appreciate director hides reminding us that we have a capital bond that may be proposed.
But certainly we have a local option that is sun setting and with the current amount of funding that we get from that that funds about 70 teachers. So if that does not get renewed in November, and it does expire this coming year, we're not talking about 18 FTE we're talking about. You know 70 teachers which would be certainly an impact across the district.
So a lot of important work to do by this November that isn't part of the general fund but is part of our local option. [00:20:00] Thank you for bringing that up Dylan. And I think it's certainly pertinent you no consideration of that contingency, you know, what used to be called ending fund balance. I think energy zero based budget is now called our contingency operating contingency.
I think that that's that's the kind that you know, they budget it's certainly valid that we. Consider that contingency in this discussion, but the larger question of what's an appropriate ending fund balance. I think is a policy decision for the board. And I think it has a lot of variables and I'd be kind of hesitant to make that policy decision in this context.
When I first started on the board eight years ago, we had an ending fund balance of a million and a half and an operating contingency of 300,000. With this [00:21:00] proposed budget the operating contingency is over 7 million. So I know back then we had more per pupil per pupil spending. We had smaller class sizes.
We had PE just to name a few and according to government finance gfo a in discussing the appropriate level. Of an ending balance. They stayed as you pointed out that each entity needs to take into account their own circumstances and it's including state budget cuts. Those state budget cuts are upon us.
I mean if we're saving for a rainy day, it's raining I would just hate to make the. You know I'm just kind of heartbroken about the proposed cuts and hope that we can find other Revenue sources to avoid those cuts and I'll have more comments about where I think there is potential [00:22:00] additional Revenue but I just you know I respect what you're saying about potential ual future ual but I do hope that we preserve the integrity and.
Fidelity to our to our students and Educators and and not just say for the sake of saving.
I just add that dr. Reynolds is correct. And she says eight years ago that are ending fund balance was. Really non-existent and it did actually impact our bond rating and be neat with that was kind of the first indicator that we needed to to pay some attention to that whatever our Reserve or ending fund balance because it did adversely affect our bond rating and we had to work really hard to get around those adverse.
Implications but we have [00:23:00] spent the past eight years trying to increase this ending fund balance because while the rainy day is coming in some views mean the reality is is it hasn't even hit yet. It is only starting and our district has had the foresight to see that for quite some time and yet. We still tend to spend it because we do prioritize our class sizes and our teachers and and that's why I think why the question that Dylan is Raising is a really good one because we collectively not just as a board, but as as a budget committee as well as just a community at large neat need to decide, you know, how we want to.
Financially plan for the well-being of not just our students who are currently housed in the halls of our schools. But those who will be coming behind them and that they're deserving of the same education that our children are currently getting and that is where an ending fund [00:24:00] balance becomes valuable as dr.
Reynolds says it's been eight years and we've managed to increase our ending fund balance to 4% with. An effort to do so, but I think it is very timely to having more dedicated effort as well as in years where there's the potential that we could approve this existing budget, but there's the potential that more money could potentially flow to the direction of our schools and making a decided efforts that amongst in our other.
That are ending fund balance is important not just to the students we currently have but it is going to be long and Bleak for a while in our future students deserve the same.
I took one to pick it back with what see say [00:25:00] the big credit give it to out by your CFO because for the last few years when the put few years ago. Parade drop a little bit some artists conducted very happy to pet tag great, but duck. No dad. The parade will go and answer that why he still give it consistent and because of tasks and stick them that gave plus 4.1 million Reserve in Perth, so that why that saving.
Reserved for the training day today so I can just set a time that when you emerge and you know without ending fund balance it million here that already factored in the reserve that we save in the past so that it ready for our wedding day.  put one of your roles as the budget committee is you know to look at the big.
Functions not the line by line. And one of the big functions is around that one point one that is still in a [00:26:00] reserve. And if you know if part of the conversation tonight is a desire to with the 2.9 utilize that this year to account for fewer reductions, you know that and still leave about 5 percent and ending fund balance.
You know, that's an option. We didn't in the proposed budget put it there, but you're aware that it's there and that could be a conversation. It's on page. It's accounted for on page. 118 118.  The reason is there is because we paid you a out out of this. Now so that's why we have to put the money there.
It's not a separate line item, but it's within that account 800 Euro for reserved for next year 1.7 million, but 1.1 up that it belongs to the reserve that we have.  [00:27:00] Because I think that the real question is is all right. So this year we have to reduce our operating budget by roughly 3.5 million.
Well that will essentially compound in the second year of the biennium because we will still have that same reduction plus the cost of our roll up. So and then the following by any I mean if State funding for education in Oregon doesn't improve I mean that's that's the risk that we're looking at and so while.
Yeah, let's move 1.2. That's a drop in the pan in light of the liability and the constant and continuous reductions. We have to would have to continue to do going forward for the next it was 12. I mean it was what was how many years was that its peak is head? 2035? Yeah, it's the mistakes that level for 10 years and then very slowly begins to go down.
Yeah, and until unless we start reserving money to start to [00:28:00] pay that debt as it accrues, then it's just going to exacerbate the reductions. You need to take each year until 2035 and I think that to call this the rainy day. I think it was the sight of what's down the road we know pers is gonna get a lot worse and an economy is absolutely booming.
And with our income tax Reliance State when the economy turns the revenue goes way down. And so I think we ain't seen nothing yet. If anything, this is raining. We're in for a rude awakening.
I'll just share a little bit. If you go back to under Tab 3 that general fund budget at a glance the last page under Tab 3 that just kind of gives a nice summary. Remember we end at 6 million ending fund balance because we start with an 8 million this year that we're [00:29:00] projecting carrying up and adding to the 111 million.
Um, if we end with the Six Million, that's and carry that up to the next second year of the biennium that's two million less with compounded with we keep the 3.5 million, but the additional costs we'd be looking at the end of next the second year of the biennium about a 3.8 million ending fund. Now if we don't use the 1 million in contingency, you'll see down here.
That's then that helps because that 1 million would move over into the next then we'd say, okay, that's about four point eight million. And if we don't use the second years contingency either at the best we could have 5.8 and that's what happens sometimes things look, Rozier on the end of a year because you haven't had to use a contingency but the contingency is [00:30:00] there for all sorts of overages that sometimes could happen, you know more people decide to take health insurance than you typically thought.
I mean, there's all sorts of things that can happen in a very human organization so that contingency is there the larger your budget and the large you becomes a. You kind of you power up that contingency. Whereas years ago. The board may have felt comfortable with maybe a half million contingency.
We've got a much more sizable budget. Now. We're almost a hundred and twenty million means you've got to put a little more in your contingency. You've got to think about your month's payroll that's larger than it was. Eight ten years ago. So those things increase but that's just to let you know what might that second year look like now, we're all hopeful with House Bill 3427 if it passes and we get the 2 billion it comes right with our second year and we're feeling [00:31:00] completely different sitting at this table next year at this time than we are today and it's a heavy conversation to have and there's a lot of what ifs.
But you know, what we've got is a six million ending fund balance, you could decide to take the 1.1 out of here and you know as a budget committee, you know, ask for that adjustment that certainly within the scope of what the committee could decide tonight and asked for then fewer reductions to be made by District leaders.
With the support of that 1 million and then again if the governor's budget comes a little stronger and we get that 750,000 that's 1.7 off of the 3.5 which which would feel a lot better going in. So so a quick reminder for the beginning fund balance estimate a million Vasa because. [00:32:00] Last month April 22nd, when I report to you the financial report.
I only did we do I ordered a take away the 1 million contingency because I feel like from now until June 30 years. We don't anticipate anything major crisis going on so that 1 million remove by removing that that why we have a million.
That's a quick question so when we are talking about beginning fund balance we're working off budget for 1819 numbers were not even talking about actuals at this point for the school year is that is that correct we're all talking about adopted budget no for the beginning one ball and because we haven't closed the book yet right so the number I have is to estimate.
So what is it? Is it based on an estimate of actuals up to this point? All right in the school year, so then the rest of the way through yes.  But it's [00:33:00] getting closer because we've got fewer months of school. And so it should be dialing in charge like all of a sudden, you know, a roof goes out, you know, or a boiler breaks, you know, some big things are less likely to happen that all of a sudden take out of your contingency or your general budget.
And maybe along the same lines when we're talking about our assumptions. We've got five percent for salary five percent for benefits. How close are we on our shot group versus actuals that we had this year, right? We book you budgeted 5% where we on or where we higher or lower. Where do we fall?
Right now we are right on target for this current year. So when I do my monthly financial report to Bowen member our salary and benefits very right on with the budget that we estimate.  but.  I'm glad you brought that up because if you recall in our presentation, we are in the middle of classified negotiations.
[00:34:00] So we've made an assumption rolling up into next year. With with the Assumption page again a process that we have to and the last page is about Josh assumption. So the classify budget assumption based on sap and color with a 3% tacit assumption, but we haven't finished the negotiation yet. So depending on that process of cola and step and health insurance and benefits that could also make an impact that could you know, we got the the additional 750 from the governor's budget that certainly could mitigate if there were some changes there.
So just remembering and this is true of I think number of districts are in the middle of negotiations some of them with licensed staff and everybody's. Makes that caveat to their budget committee that were also in the middle of some other [00:35:00] processes that could impact things up or down. I think you heard that from Beaverton with their 35 million dollar cut 200 positions.
They're still not even done with negotiations and it could be more than that depending on the outcome of their negotiations and we're not as large as they are but everybody who's still in the middle of that is keeping that in mind. In sorry, maybe one more question while I'm on a roll here. So there's a gentleman from the community that highlighted what I think if I did the math right was about two and a half million dollars of sort of additional or unexpected items that maybe we haven't factored in or talked about I'm not may be expecting an answer of the on the validity of that tonight, but it's part of this process.
How do we figure out if that's real and if that's coming in in order to increase the beginning fund balance and ultimately flow in.
Yeah, I don't know enough information. I know at the last report public comment was please use [00:36:00] your purse reserved and you know all of us sitting in at that meeting already knew it was factored into the ending fund balance. So sometimes public comments are you know, pulling from different places that I wouldn't know if that's something we've already factored so.
So.  I think there are a lot of unknowns or changes from when the budget was developed and I'm going to propose at the least that we have the second budget hearing on the 16th, or perhaps even later. What's changed is that 3427 past there may be $750,000 additional in the governor's budget. And I think we'll know that pretty quickly.
I'd like to take more time to look at the work load measures that were just handed out and maybe the [00:37:00] Oregon Wellness survey results. And I think that's particularly important with the new zero based budgeting model. That's been a DOT that's been used that it was zero based budgeting every function within an organization is analyzed for needs and costs and then it's measured against previous results.
I mean current expenditures. So I think you know taking a look at that data is going to be even more important under this new model. There's the 900,000. Additional Revenue based on the May 3rd organ Department of Education State School fund reconciliation and I did look at that and it's it is there and that's it just came out in May 3rd after the budget was developed the most recent OD e state school funding for 1920.
Shows an additional one point 1 million and local option Levy and property tax revenues and you know, I think that's definitely [00:38:00] that's Oregon Department of Education funding that wasn't factored into the budget. We're considering the budget. We're considering had.  It was based on legislative fiscal office figures of a 50/50 split.
So if the new Under the new Governor's budget if it's 4951, you know does that I think that that. Doing both LFO and 50/50 kind of art of artificially and 4951 kind of artificially reduced our revenues. But so I you know, I like to see that reconciled and then another potential source of additional revenue is given the urgency, you know, the potential of three and a half million dollar cut to our budgets and Educators and programs and you know big impact on families and students.
You know, I'm wondering if we should consider using Lance the [00:39:00] Lance sale funding for general fund expenditures rather than Capital Improvements. We have a revenue forecast coming up May 15th. It's expected to be positive and it would be good to have that information and maybe anticipate the impact on the budget small things like well not so small, but very active bills in this Congress.
To increase idea but I DEA funding to the long-promised 40% So it would be nice to check on the status of that and the potential fiscal impact on this budget. And then again, dr. Leopard just just mentioned. You know, do we do we want to take a look at that one point seven million dollar reservation for next year, even though 1.1 of it belongs to the I think you said the pers Reserve, you know, what about the that difference?
I'm not ready to absorb all that and think about where it should go. [00:40:00] I'm in a jam that $750,000 if the governor's budget passed so I think there are so many variables that have emerged since the budget proposed budget was developed. I'd like to take additional time to think about those changes at the least.
Maybe have that second budget hearing absorb what's just happened today with the passage of 3427 the new information about OD e figures, you know, I'm feeling like I'm not ready to make decisions. Particularly when they're so drastic for our for our district the three and a half million. I just if there's any way to avoid that.
I hope we can take the time to thoughtfully consider this proposal.  I think that'll be you know conversation for the committee. I'll just remind that in my budget message on page five. We just put an amendment budget plan in there that said. Any increase in public school in any funding that would come whether that's the governor's increase [00:41:00] if you decide to move the 1.1 over whatever might come and eat.
Truing up that continues to come forward between now and when the doors open which is why we're being very cautious and slow around naming or moving on those reductions as things change all the time. And so we're holding that number but if it keeps getting smaller and smaller, that's a good thing.
And as we get through the summer will be closer to what we look like in terms of the actual reductions, but you'll see the amendment budget plan is in the event that state legislators are able to increase funds for public schools. And that would include the governor's budget and the joint Ways and Means to impact the 1920 school year.
We would make the following adjustments restore back licensed and classified positions of the first priority. You'll notice we didn't say the administrator. Add additional staff to address class size mental health and social emotional supports for students. [00:42:00] So the comments tonight about supporting students in the classroom.
We are hearing that loud and clear that's that priority and then we do have this state mandate. About increasing PE instructional hours, which is increasing PE instructors, which we've suspended but we could after those first ones are addressed we could go back because that would involve getting a waiver from the state that may or may not get approved and then after that restoring professional development opportunities educator conferences, And only after that then cautiously begin early steps of a next curriculum renewal, but we're already hearing that the state is putting a suspension on that anyway, because of where districts are the uncertainty that for a year, they may not move forward with a renewal either.
So you'll you will see that first bullet item is restore back license and classified positions. And so whatever the dollar amount ends up being increasingly over the weeks and months [00:43:00] right up until August that would be. Our priority.  so I would like to follow more now. What what dr. Locke was say it brings you back to the focus of our general one.
So when we review the general fund as ourself question if I was spending match without Richard investment strategy and I believe you also believe we. Imagine what our investment strategy and then, you know, we also the major problem that we face and did buy any of the Pearl raised in greed if we don't have the 3.5 million problem with / then we would not reduce over cut any position.
So in the perch at general fund budget at a Klan we do our West we factor in the 3.5 million increase in per into our podcast. So [00:44:00] what if we would throw the reduction. So all of our own for the turnaround fun, we match in our spending plan with the investment strategy. And when we also address the problem that we face in with a Dapper and then we also talking about the ending fund balance.
Was it appropriate and infant balance for our district? So with that it may fit in. More money or less money. We know that when we have more money based on dr. Lot with methods that we will restore FTE. So if nothing else we can we can do better. If so, it may 15 when the new number coming out. We know that we will receive more money.
We will restore license every fourth back in place.  So I'm. I'm a Wanderer on [00:45:00] like why we have to wait for May 15 and how another second victim.
Yeah, but sin, we arrest everything that we can already today.
You had said you had some questions.
Thank you. No, I do appreciate the many times. We've been reminded how you know these numbers on a spreadsheet. They all have their own stories and they could be interpreted differently without hearing the where these numbers came from in the story behind it and the focus on the programs with the existing budget and being a good Steward of those of the budget.
So there's two programs that I would love to get some additional insight about the state of health and [00:46:00] the direction for these two programs. And they deal in the topic of inclusion we saw I feel about the topic of inclusion and the first one is the program it's categorized as 1221 it's around if you can share some insights and I'll have you know just being respectful of the headcount and whatnot but the Intensive support for students with disabilities.
Um, if you can share just a little bit more about that program and the direction that maybe the thought process of the district and and the investments in that particular program and just so you know, the other program that I wanted some insights on is on 1250, which is a couple Pages further back on page 21, which is.
Entitled support for students with disabilities because between those two the Intensive support for students with disabilities and support for students with disabilities it seem like, [00:47:00] you know, just from looking at the numbers that there was a different philosophy. So I would just like to get your insights and the state of health of those programs moving.
Happy to jump in on that. So, dr. Reynolds talked about the individuals with disabilities Education Act idea. And she was talking about the hope for more Federal funding at some point and we hold on that hope and in the meantime, we are have the charge of making sure every single child in our district has a free appropriate public education every day and that.
Philosophy and beliefs that has haven't changed in that we've always had an obligation to provide a Continuum of supports for children. So some children need a small what we call Circle of support around them and some need a very wide circle of support around them to be able to access [00:48:00] their education.
And those two budget numbers 1250 and 1221 used to work fairly separately in our old model where we supported students with levels of need that were less intensive and every school but only had some places where students who had more intensive needs we for efficiency sake or for sort of. In some expertise together in one spot might have said all the children that have this type of need they'll be a class for them.
Just maybe at one school in our district. And so those students if their IEP that the team that worked well worked with that student and knew that student including the parent decided that they needed that level of support they would get bussed over to that school to get that support and that was all through the budgeting of [00:49:00] 1221.
What we have. The shift we still have a Continuum of supports some students still get a lot of support and some students get less support in every student is entitled to the support that they need but what's changed is now we have that Continuum of supports at each school and we're certain we are living into that every day and trying to do that better and trying to engage with our parents and families and how to do that better and better one of the things we believe.
Has everyone has a right to go to their own neighborhood school? And so now it's less it's harder to go into a classroom and say who supported through the 1250 fund and who supported to the 1221 van and actually we would hope that the children and families wouldn't even know the difference but that they'd be at school and be learning and having their supports met but it is.
In terms of tracking our [00:50:00] spending and special education has a even higher level of accountability than some other areas of Education funding different auditing and accounting that happens to track that to ensure that districts aren't. Cutting the services for the few that might be you know in some cases might that's a child might have a lot of needs and that child has the same right to an education as anyone else so that 12:21 and 1250 work together and every school.
We have a couple of we have a number of Staff devoted to special education supports and in every one of the schools, at least some of those staff are paid through 12:21 and other of. Staff are paid through the 1250. And again, our goal is that it feels like a seamless circle of support to the children and families and teachers but behind the scenes were tracking that sort of.
Smaller level [00:51:00] of support in higher level of support what I'm hearing is that regardless of whether that child that student needs intensive support or they're on a is for lack of a better word a simplified IEP. It looks like if you combine both of the programs and the investments in those programs, it's going to actually be a net increase year-over-year from a proposal standpoint.
There's what is what I'm seeing when I add the numbers up between the two budgets. I was concerned that I saw a big variance between the two budgets. So but it looks like it's a net increase. Yes, and because of two things one is as we know staff costs, even if we kept our staffing the same our costs would go up every year because staff costs go up every year.
Also. We're a growing District. So we haven't yet had a year that we haven't had to add staff to support students and. In terms of students with special needs It's Not always completely predictable what those needs are going to be and what the Staffing [00:52:00] level is going to be and so we try to be in very good communication about when something a student might move in who we didn't know and we're happy so happy to welcome them and they might have a plan that has a lot of parts to it that need to all be accounted for and supported so that they can come to school too.
Thank you.  I have no further questions.  Is there any other Committee Member that has questions or comments about the about the budget? Well, I certainly want to hear from more folks about director hides.  request that we think about at least establish seeing some. Goal or aim for ending fund balance as a percentage, I think.
There is a part of me that is tempted. [00:53:00] Maybe that's a word to say that.  We don't have too high of one and that when we have hard times. Incumbent on our community to to encourage the legislature to fund the schools and that's impetus for change and you know the cut should come in that time and the resources should come in that time as opposed to now but I also understand saving for lean time so I'm I would very much like to hear from other committee members who have an address.
There are thoughts on that percentage issue.
I'd be happy to jump in there. I think what I heard from the two board members who spoke in response to this question was a [00:54:00] desire to have well at least from. Director Molitor and director hides a desire to have a slightly higher ending fund than 4% if that's what I heard correctly. I would agree that 5% seems to be the minimum recommendation 5% to 8% I'm more comfortable with it being in that range particularly with the pers costs Roll-Ups and the fact that.
You know, I remember eight years ago when we had to cut significant programs and the impact that that had and so one of the words it's always stuck with me is the idea of sustainability that we that we only hire and incorporate programs that we know we can sustain and having five to eight percent ending fund balance something I'm more comfortable with and you know only hiring what we can sustain so I don't know if that means with the.
Amendment budget plan that were that we add a line that says something like, you know, bring the ending fund [00:55:00] balance up higher than 4% or if it's just a tacit understanding but I'm more comfortable with the higher ending fund than 4%.
So just to maybe add on there so I get and maybe it's slightly 10 gentle. I'm not sure but in terms of the the land sale dollars and I'm not close to the long range planning and whether we actually have a need at any point in the next two five ten years to procure land for a school and whether hanging onto the six million dollars is really necessary at this point or whether that same amount of money or potentially more could be raised through.
Capital Bond and perhaps some of that money could be used to offset either this year's shortfall or sorry next year shortfall or to bring up that ending fund balance to something more in that six seven eight percent range. So again, I don't know if anybody else has is closer to that that money and its intended use over the coming [00:56:00] years or whether that's something we could actually pull from in the short term.
So I would just add that the board has done a lot of work in the last year and a half queuing up for potential Capital Bond and November 1 of in there long rage, you know sighting they have contracted with Flo analytics who did our enrollment projection to do what's called a future sighting report.
And that involves looking at land in the area and potential future sites for schools. You have to consider what's even available. What's the proximity to something? That would be conducive to a good school site is there is the land size even viable or there? You know pockets of land that you could you know, think about contingent that could make a larger [00:57:00] site.
So that report is being complete and will be presented to the board. The land sale that did just get completed that were in process with with Brokers. The board has also made a purchase and so. Some of that land sale also is getting rolled into a land purchase. So there are some moving Parts there be happy for the board to share more and then they're waiting this report about the future sighting so that they could you know, look to see is there something now that we would want to move on because land is available five years from now that landscape could change pardon the pun and it wouldn't be available for purchase.
So there are times when boards make moves even when they're 10, 15 20 years away from a possible School purchase because the land is available now and we're benefiting from those kinds of decisions today [00:58:00] land that was purchased in 1992. 1998 is some of the land were using Dollar Street a long time ago was purchased and in and now it's becoming a property that.
Thankfully is available to us because of the density of West Linn we would never find it property that large that we could build a middle school on so sometimes the immediate need isn't there to purchase but in a growing District there's a purchase rollover into something that's predicted because the land is available right now so I don't have any board members want to talk more about future sighting or that report.