April-22-2019-Regular-Board-Meeting-Seg-3
[00:00:00] You're reconvening the budget committee meeting for April 22nd with us are the budget members. Thank you for coming.
Now see King Martin I'm here.  A Reynolds is here. Well, we'll get her at the end traffic. Yeah. Mr. Hyde's still here Megan military here. Craig Nelson here in chemical. Wha Jeff Allen here Kristen Wyatt? Steven Owen here.  Betty Reynolds this
[00:01:00] year.  the first item of business on our agenda is election of the budget committee chair and vice-chair. I have nominations for the chair.
I'll nominate Jeff Holland.  The other nominations I'll second.
Miss Douglas.  Are there any Nays? Thank you.  I'll take nominations for vice chair.  I would nominate Jim come a cola.  I'll second that.
Are there any [00:02:00] days?  Thank you with that. I'll turn it over.
Thank you chair, bitch. I think the first item on our agenda is for the presentation of the proposed budget message from dr. Ludwig. Thank you very much. Budget committee members you have in front of you a hard copy in the binder of my message that you can follow along and for those at home and in the audience, we are going to project it up on the screen.
I want to thank all of. The staff who worked tirelessly to make sure we were ready for this evening and particularly. I'd like to recognize Theresa Davis and Carol and gray. Can you way from where you are
if [00:03:00] your paper is a little hot to the touch it's because they were madly working to the last minute with little tweaks here and there I'm wanting to have an excellent product in front of you tonight. This is the superintendent's budget message. You're wesen Wilsonville School District budget committee members and Community.
I respectfully submit the West Linn Wilsonville School District proposed budget for 2019 2020 in accordance with ORS to 94.3 9 1. The proposed general fund budget of 119 million seven hundred and thirty two thousand and forty eight dollars accounts for a balanced budget that aligns with the school board and school districts goals.
These goals are identified prioritized and articulated to maximize student learning 2019 2020 one state budget allocation for school districts. The Western Wilsonville School District 2019 2020 budget proposal is based on an [00:04:00] eight point eight seven billion dollar State School fund allocation by the co-chairs of the Ways and Means Committee to K12 school districts.
This is 100 million dollars less than the governor's proposed budget. Well eight point eight seven billion dollars is an increase from the past biennium of eight point two billion. Unfortunately, it is not enough to accommodate roll up costs to maintain current programs and personnel and it is well below what is needed to adjust for increases to pers the Public Employee Retirement System.
For Weston Wilsonville, this means an estimated cost increase of 3.5 million dollars in each year of the new biennium. This is not a one-time cost increase for one biennium funding pers obligations will affect all public agencies state government public schools City County and Special Districts for at least the next 10 years as [00:05:00] school districts across Oregon are submitting their school budgets for next year.
State officials and legislators are still considering ways to increase K-12 funding for the next biennium and longer-term. In the meantime. We are charged with submitting a budget based on news received and not news speculated.  Budget investments in excellence opportunity and access in the process of assembling a school budget the district maintains a theory of action that investing in diverse and challenging learning opportunities for our children.
Leads us to achieving our goals these key investment strategies are identified and implemented because they prove to exemplify the quality of learning and the quality of care every parent wishes for their child and the outcomes for every child in our community to be fully prepared for college career and the world are key investment strategies include.
Hiring and developing the most qualified professionals who provide [00:06:00] expert instruction for all students including students with diverse learning needs prioritizing and delivering high quality professional learning experiences systems curricula and supports that impact instruction in the classroom on a daily basis.
Developing and sustaining strategies that increase time for learning including a full Academic School year and full academic schedules for all students. Maintaining effective class sizes while strengthening counseling teacher librarian special education operations and Information Technology support expanding and supporting strong Early Childhood programs Pre-K and kindergarten expanding advanced placement and other college level courses in our high schools providing enriched and comprehensive programming for the Performing and visual arts world and dual-language Athletics activities and wellness across all schools.
Expanding stem and CTE programs and related experiences in science technology engineering journalism Health Sciences [00:07:00] business marketing and Mathematics.  And maintaining responsible stewardship of our facilities grounds and other property. Measure 98 High School Success grant our governor has committed to continue funding measure 98 for the 2019 2020 one biennium at the same level as the previous biennium at a hundred and seventy million dollars the measure 98 Grant targets Improvement to graduation rates through expansion of Career and Technical education programs, addressing chronic absenteeism and providing interventions that reduce dropout.
School districts apply for funds that must be spent to implement three strategies first establish or expand Dropout prevention strategies and high schools second establish or expand college level educational opportunities for high school students and third establish or expand Career and Technical education programs in high schools in West Linn, Wilsonville.
We have [00:08:00] developed a strategic plan for allocating measure 98 funds. To impact all three of these areas that connect to School attendance graduation and a students aspiration for college career and Beyond.  measuring the outcomes of our investments.  our district Mission question. How do we create learning communities for the greatest thinkers and most thoughtful people for the world sets the stage and tone for the collaborative and Collective ethic of Excellence.
We hold for ourselves as professionals. From this compelling Mission question emerges annual District goals and a district work plan that identifies and outlines actions strategies and measurable outcomes to align and allocate resources towards meeting these goals.  We measure the outcomes of our investments by collecting analyzing and utilizing a broad range of data and evidence for example graduation rates.
[00:09:00] Weston Wilsonville has the highest in the state of Oregon for a district our size Dropout rates Weston, Wilsonville schools continue to make important strides and keeping students engaged in school k12 regular attendees. We Monitor and respond to data that helps us work with students who have chronic absenteeism ninth grade on track.
We Monitor and respond to data that helps us Focus strategies and supports to students in their first year of high school. Student participation in AP courses and dual credit classes at our high schools, Oregon Department of Education school report cards, Oregon State assessments that provide academic Benchmark data aligned to College and Career Readiness and District interim and formative assessments that provide academic growth data.
These type of Assessments standardized curriculum-based measures tests grades Etc. Provide valuable information to help students monitor their [00:10:00] own learning help teachers adjust and prepare strategically for new learning and help our school and District leadership teams effectively plan where broad-based as well as targeted new learning and resources are needed.
In developing a balanced budget for the 2019 2020 school year. We have made the following working assumptions.  for Revenue. State revenue of 8.8 seven billion dollars for the biennium as submitted by the co-chairs of the Ways and Means Committee.  49% of the biennial allocation in 2019, 2020 and 51 percent of that allocation in 2020 2021.
We're projecting a local option revenue of nine million nine hundred and forty eight thousand four hundred and seventy four dollars. Our average daily membership of students is projected at [00:11:00] 9,998 an increase of 48 students and the average daily membership waited projected at 11,000 248.  Utilization of regional ESD funds be appropriated to the district.
And a carryover of approximately 8 million 60 5755 dollars. Of our 2018-2019 ending fund balance, which now includes 2.9 Million of our pers Reserve that was moved over into the general fund.  These are our expenditures increased Personnel costs to honor negotiated contracts that include increases in cost of living Cola and health insurance increased cost in pers.
The public employees retirement system and increased costs for utilities Transportation Material supplies and purchased services for all buildings and adjusting for growth [00:12:00] across the district.  There are challenges with the current state funding level of 8.8 seven billion dollars. Eight point eight seven billion dollars from the state does not quite fund the roll-up costs of current operation and Staffing from the 2018-2019 school year.
It absolutely does not provide enough funding to offset the 3.5 million dollars pers increase for our school district.  The 3.5 million dollar pers increase paired with insufficient funds from the state. Result in increased dependency on local option Revenue depletion of our pers reserve and the risk of a fund balance far below Gatsby recommendations.
We are looking to make reductions to Staffing and programs needed for 2019 2020.  Based on the 8.8 seven billion [00:13:00] dollars funding from the state. We submit a proposed budget that includes. 3.5 million dollars in reduction in expenses for the 2019 2020 school year.  The expense reductions will largely impact Personnel.
We plan to reduce licensed staff by 18 full-time equivalency reduce one administrator position to non-classroom staff positions and the equivalent of 12 classified position. These reductions May imply that impact class size.  Expense reductions will also include suspending new curriculum renewals suspending implementation of State mandated increased PE Wellness hours and primary schools.
Reducing professional development opportunities and reducing educator conference attendance. Maintaining the school year and targeted support for students. [00:14:00] We will continue to support a full Academic School year and full academic schedules with targeted support for Extended Learning time. We will sustain our strategies of targeted support for students for whom we have identified opportunity and achievement Gap.
And we will optimize our measure 98 Grant funds to increase graduation rates and decrease Dropout occurrences across all three high schools.  We've included an amendment budget plan in the event that state legislators are able to increase funds for public schools to impact the 2019 2020 school year.
We would make the following adjustments restore back licensed and classified positions. Add additional staff to address class size mental health and social emotional supports for students begin implementation of State mandated increased PE Wellness hours in primary schools, restore professional development [00:15:00] opportunities and educator conference attendance and cautiously begin early steps of the new curriculum renewal scheduled by the Oregon Department of.
I'd like to recognize our community. I wish to recognize the leadership of our school board members. We appreciate your volunteer service that includes countless hours meeting with patrons attending school and District events while leading the district. We appreciate your belief and support in the professional expertise and commitment to students by our staff and administrators.
We appreciate your courageous advocacy for inclusion of all children in a general education learning experience while speaking out on issues of race equity and sustainable funding for public education. We appreciate your priority and persistence in advocating for adequate and stable school funding.
I wish to recognize our budget committee and all who participated in this budget development [00:16:00] process by sending us your feedback. Parents patrons and staff the interest support and advocacy by our community towards our school district is deeply evident the strong investment of parent volunteers and Community Partnerships in our students is a Hallmark across Wilsonville and West Linn.
I wish to recognize the Excellence of our teachers and staff in our schools who bring their best professional selves to the work on a daily basis. Our teachers and staff seek out professional learning that address race and Equity reform reach research-based best practices and high leverage instructional strategies that move the dial in eliminating opportunity and achievement gaps at 94.5% West Linn Wilsonville School District students demonstrate the highest graduation rate in Oregon for our multi High School.
Lastly I wish to recognize and thank our community's generosity and supporting local option [00:17:00] levies and Capital Construction bonds over the years our local option Levy helps us currently fund approximately 80 teachers and our most recent Capital bond in 2014 allowed us to build a new Middle School rebuild a primary school and attend to large capital and safety projects across the district.
These are significant contributions and we would not be able to provide the level of service and learning to students without this support.  In closing this budget message is presented with the sobering recognition that we will be making significant reductions to our personnel and professional development program next year.
Reducing by 3.5 million dollars while also growing as a district would be a noticed impact. And yet I hold a spirit of optimism that our community our state and our elected representatives will continue to seek out ways to support public education funding in Oregon. [00:18:00] We must always strive to fulfill the district's compelling first goal to provide each child with a high-quality education while eliminating opportunity and achievement Gap.
I am proud and humbled to serve the Weston Wilsonville school district and I believe this budget supports the mission and goals of this school district as we lead for all respectfully Kathy Ludwig superintendent. Thank you. Dr. Ludwig will now hear from the district CFO suddenly who's with the presentation of the proposed.
Budget materials.  good evening. So now I get. To walk you through a fun thing. So, you know, I think over Sunday we have we all celebrate Easter and we hide in Echo over houses or your hand the backyard and we have recent children out there for hunting. [00:19:00] We did not provide them any map or some time with my give them something to go here and there and somehow they managed to collect many egg and coming back.
Good at bucket so here tonight.
So the walk I will walk you through the budget book and I also have a map for you. So in see how much you can hunt.
easy.
The first part of hunting
yeah.
[00:20:00] Okay, now are you weren't ready? So the first one we have is how to read a budget book as you know that the budget bill for all School District in Oregon is standardized and follow the Oregon budget law guidelines. So Oregon budget law require every spoon Detroit to pass an annual budget and an annual budget periods for our state is starting to life.
First of June 30th, the final products it addicted Financial plane that estimate expenditure and revenue for fiscal years. So in our budget book, we have a total of seven session so I have. The bucket to gotta butter last bucket. I come by Section 5 6 & 7 together. So under session one at we listen to our superintendent.
Dr. Lot word to [00:21:00] share Woodrow's about a budget message of focus on disciple chart allocation the state budget allocation and how it affects our district. The second was it investment strategy and how this connect to our commitment work in a shaman Shaman about how state budget will affect our revenue and ending fund balance and last but not least on the budget methods it a challenge in that we face with the current state funding level at eight point eight seven billion.
the David a first session. So when you review the budget and you move on to the second section deck second session focus on budget process in this budget process. I mentioned about introduction of the budget this one identify the base budget model that we use for [00:22:00] our fiscal year 1920 in the past.
We used incremental base budget model. This command gear fiscal United not 20, I implement it cost zero based budget model. And in this introduction I explained in detail was it that means so you can review the second part of the budget process a budget calendar the budget calendar and process time flies have Prismatic the requirements in the Oregon budget law.
The last part is the Assumption the Assumption dispositive very critical because when you review the budget, if you pay some attention to this area, it will answer most of your question because in this assumption is include the cost of living percentage insurance rate worker compensation rate [00:23:00] Social Security local option.
Health blend big budget assumption allow you to see the rated at we you for the adopted budget fiscal year 18 19 and it's also show you the rate that we are proposing for Budget 1920. When you finish session to see you move on to section three session Twisted of findings of summary in here. You will find to report the first reported called Financial summary Financial summary.
Aquino at you know that our district maintained for individual government of fund. The first one is our general fund second special Revenue fund. The first one is depth surface. And the last one is a capital project all of the funds summary allow you to see the dollar amount and also the [00:24:00] percentage of each of these fund.
And then on the second report internet page, you will see the general fund as a client. This allows you to see all of the inflows and outflows of show Shake without general fund and as you know general fund is a major operation on.
Okay, so when you're done with Section 3 we move too strong for passion for is the major budget document in here. Bucket document in Dallas area will cover for individual government fund with is the general fund special Revenue funds deaf Services Center Peter project. So when you go into the channel on fund, you will see two area.
The first one is the channel to open resource [00:25:00] in an order term in business plan what we call revenue and another area we call. General fund requirement that's is expenditure in business world.  Under channel on fund requirement. We have we allocate by on function and object.  The object allows you to see how we spend money to relate to salary benefits services and supply requirement.
Allocate by function as allow you to see how we commit to induction alone and how much we committed to Student Services support.  Induction on Shawn for a function are activity during directly to the lab classroom activity that between teacher to the student or the interaction between teacher [00:26:00] and student.
And a student support activity desire to access and improve their well-being of student so that are the two main function under the general fund.  So under the budget document you also see special Revenue, that's it a tooth.  Go further down. The spessard revenue come from federal and state and local sources such as Title One title, two, three, four individual with disability education art and high school Success measure 98 this financial or will help our school district support specific initiative and meet government of requirement.
The first one is the depth surfaces.  [00:27:00] All the way in the back life like halfway through very very back so deaf Services. These are fun that accumulate for resource and payment of our per bone when we went out for Pro Bowl in 2004.
That's how this is about page 117 if you're still in still in section 4.
Okay. And the last one is a capital project capital projects are funded at a cal for financial resource that due to a horse and control facility and projects. So right now we have two outstanding bond to that the end of 2009 and 2014. That includes our session for [00:28:00] what to do the major information for our budget document.
So when you move to section 5 rough and material.  This graph and material. The first one is organizational chart - Robo member Community CSUN School Board superintendent and whole report to the superintendent. The net want a net information is information that we receive from Oregon Department of Education.
This is the current information that we receive in March 18 up 2019. It gives us this information based on a point eight seven billion and a slip a 49 51 percent throughout biennium. After that is the enrollment student enrollment craft that show you the history of the last five years [00:29:00] the first the first three years is the actual average daily membership.
And then the last column is the estimate that we have for fiscal year 1920.  And then we have to craft or low cone. Option tax that's own show. So you defy your history.  And then the estimate of fiscal year 1920.  The last graph that we have in here see the ending fund balance. This is very critical because we can see how we estimate that we have throughout a year.
How is that keep track with the budget that we adopted?
Yes. And then when you look at the estimate for fiscal year 18 [00:30:00] 19 in the graph, you see the estimate and infant Balan is a million and then I will explain more when we talk about financial monthly report for this month. But since I'm on did page I would like to bring up your attention at earlier.
Dr. Love would mention that in our carry fun ball and 9.5 million. That's all. Includes 2.9 Million that the Pearl Reserve that our auditor suggests that we should move from special Revenue into general fund for the last year so that why when it carry forward I show 9.5 million at the beginning one violin, but you know if we passed away that 0.9 and it really 6 million something so because the Pearl Reserve including in our.
Beginning carry forward my ending fund balance for this fiscal year [00:31:00] look like we have a million, but in fact, we only have five point 1 million. The last information on hearsay is FTE this one show you all of our fun FTE. The first page is a general fund so you can see the total proposed fde for 1920s 850 4.96 FTE for general fund.
76 484 fde for special Revenue. And sit FDA for Capital project with a total FDA for all our district is nine hundred forty seven point eight fde.
The last information in terms of reference material is also very important and Carol and great been working very hard on putting this [00:32:00] summary information together. They show you all of their client and contract the money that we receive from special Revenue in here. It shows you where the money coming from within the fund and then the great name.
And then the budget and then ho in chart of that Crane and contract and then where the money comes in form. So you can see that we have money coming from Portland populists Kuhn State fun Clackamas County Oregon State University. We have some donation and then we have money from Federal. And we also have land sales in here on the right hand side.
You will say that day for man to with terrorists was in the life of each grain and contract because this is very critical for me and our budget our first speaker. When we see the end in [00:33:00] day then we know and we remind ourselves that it's time to take action because if we have at the eat at charge it into the ground and this grant will end in statement of three months.
What are we going to do with the project or what this FTE so we have to look ahead and schedule for that shipping. No, the last one is Session 5 6 7 that's a very much the Griffons that we have the legal of the legal will see when I do any publication to have the budget committee vacancy or the budget hearing.
We notified the populace we have to put all that material in this book. And last but not least will be the budget the middle notes. So May 13 when we have the but the Mitten we will receive question. We hope to receive question prior to that and then we keep [00:34:00] off the not in here, so that includes my how to read a budget book.
So if you have questions, please let me know.  Thank you very much. It's a lot of material to go through and we have a few meetings on the calendar for the future. So tonight we received the budget message and the next the next meeting that we have on schedule is May 13th. And that's where we will get together and discuss and deliberate questions and and other comments.
On the budget. We also have reserved May 16th as an alternate meeting. Should we need to continue discussion and I believe there might be a message from the state. Is that on the 15th? Yes. It's to [00:35:00] update kind of where that where the. Where where the school funding is coming in? And then the next meeting would be June 3rd 2019.
And that's where the school board would have an adoption of the budget. So tonight. We're not planning on having any deliberation. On the budget. This is the first time we've seen the budget presentation. But as far as process, I think in the past we've we've submitted questions to the superintendent and CFO it is that how you'd like us to proceed this time.
Yes, please. Yeah. So all of the question was sent directly to our superintendent and. CC me on me and then we will try to arrest the question Riya to the Mitten or when we sent out the response. We will respond to our even though [00:36:00] the question come from one person, but we would like to respond to all become it could be your question too.
Yes. And when would you like to be the final deadline for the question so that you have time to to read through them and and respond we'd like them in by you can begin. Send them any time, but we'd like written questions to be submitted by the end of the day on May 9th. That's a Thursday that still gives us Friday to continue to work on getting some of those responses back to all of you after May 9th.
We'll just hold those questions and the member of the budget committee who posed them will get to ask them that evening and will respond. Verbally that evening to those questions. Okay. So let me reiterate we can turning questions anytime and May 9th is the last possible time to turn them in and I think we should send them directly to superintendent.
Dr. Ludwig [00:37:00] Ludwig and preferably don't copy other people on the committee because we don't want to be deliberating via email.
Is there any other business that we need to discuss tonight? So Jeff if you could when you get email our superintendent, if you could see see me, too. Yeah, okay. Yeah CC suddenly as well.
Well, I'm hearing that there's no other business to conduct tonight will recess the budget committee. Thank you so much.
Mr. Hanna, thank you.