May 04, 2026 Called Meeting and Agenda Review

EVERYONE IS ABLE TO HEAR THE PROCEEDINGS. THANK YOU. THANK YOU SERGEANT. THE TIME IS 6:01

[00:00:06]

[4.A. 2026-27 Budget Update]

BUT WE'LL STILL HAVE A BUDGET ITEM IN CASE WE NEED TO CONTINUE TO CLARIFY AND ADDRESS ANY QUESTIONS. AND THEN WE HAVE THE JUNE 8TH MEETING. AND THEN THE 15TH WAS SCHEDULED TO ADOPT THE BUDGET. SO EACH PRESENTATION IS SO CRITICAL. AND THE THE SMALL GROUP MEETINGS ARE ARE CRITICAL IN THAT IT HELPS ME TO REALLY FOCUS ON WHAT YOU NEED IN ORDER TO GET YOU PREPARED TO ADOPT THE BUDGET. SO TONIGHT IS REALLY A BIG NIGHT FOR US TO BE ABLE TO REALLY GIVE YOU THAT NEXT LAYER OF INFORMATION THAT YOU NEED. AND THEN ANY FEEDBACK, OF COURSE, THAT YOU PROVIDE FOR US TONIGHT, THEN WE'LL BE HARD AT WORK MAKING SURE THAT WE REFINE ANY BUDGET DETAILS THAT YOU NEED AS WE WORK OUR WAY TO THE 15TH. AND SO TONIGHT, BRIAN, GWEN AND KATHLEEN BROWN IS OVER THERE. OKAY. WILL WILL LEAD THE PRESENTATION. THEY HAVE TWO COMPONENTS THAT THEY'LL BE LEADING. SO, MR. GWEN, I'LL TURN IT OVER TO YOU. THANK YOU.

THANK YOU, DOCTOR SMITH. AND GOOD EVENING, MADAM PRESIDENT AND MEMBERS OF THE BOARD. AND FOR THOSE OF YOU WHO MAY BE JEDI, MAY THE FORCE BE WITH YOU TODAY. SO THIS EVENING WE WILL REVISIT WITH YOU THE KEY TAKEAWAYS FROM THE PRESENTATION WE DID ON APRIL THE 13TH, PROVIDE YOU WITH A COMPENSATION AND GENERAL FUND UPDATE, SHARE INFORMATION ON THE DEBT SERVICE AND CHILD NUTRITION FUNDS, AND REMIND YOU OF OUR NEXT STEPS. AND TO START WITH, ON APRIL THE 13TH, THE KEY TAKEAWAYS THAT WE SHARED INCLUDED THAT WE CONTINUE TO EXPECT 2526 TO END BETTER THAN WHAT IS BUDGETED. AND WE HAVE ACCOUNTED FOR THE HEALTH BENEFIT DEFICIT THAT WE'RE EXPECTING. WE ALSO SHARED THAT WE'RE STILL IN THE PROCESS OF WORKING THROUGH THE 2627 BUDGET, AND THERE WILL BE CHANGES TO THE NUMBERS. AND DURING THAT MEETING, WE SHARED HOW WE ANTICIPATE COVERING THE DEFICIT. THAT'S ALSO EXPECTED IN 2627 FOR THE HEALTH BENEFITS FUND. THIS EVENING, YOU'LL SEE CHANGES THAT SHOW HOW THE BOUNDARY CHANGES AND CONSOLIDATION, AS WELL AS ENROLLMENT DECLINES, HAVE IMPROVED OUR OVERALL OUTLOOK.

AND YOU'LL SEE SCENARIOS THAT SHOW POTENTIAL COMPENSATION ADJUSTMENTS USING PROCEEDS FROM LAND SALES THAT ARE EXPECTED TO CLOSE THIS YEAR. FINALLY, WE'LL BE DEVELOPING AN OUTLOOK FOR 2728, AND THAT WORK IS CURRENTLY IN PROGRESS, AND WE EXPECT TO SHARE THAT INFORMATION WITH YOU ALL AT THE WORKSHOP NEXT WEEK. THESE ARE THE MAJOR ASSUMPTIONS FOR THE GENERAL FUND IN 2627 THAT YOU SAW ON APRIL 1ST AT THE MEETING IN APRIL. AND TO QUICKLY RECAP THIS INFORMATION, IT SHOWS THAT WE HAVE REMOVED ONE TIME REVENUES FROM THE BUDGET BASE,

[00:05:04]

AGAIN, THE HEALTH FUND DEFICIT THAT WE DISCUSSED WITH YOU LAST WEEK IS INCORPORATED IN THE OTHER 25.8 MILLION IS THE GENERAL FUND PORTION OF THAT DEFICIT. AND THEN WE HAVE INCORPORATED THE OPENING OF COLEMAN MIDDLE SCHOOL, THE STRATEGIC REDUCTIONS WE'VE COMPLETED, AND A HOLD HARMLESS FOR 30 POSITIONS THAT ARE IMPACTED BY THE STRATEGIC REDUCTIONS. AND SO THERE HAVE BEEN NO OTHER CHANGES TO THE ASSUMPTIONS THAT YOU SAW LAST WEEK. AND AS WE GO FORWARD, WE'LL SHARE WITH WHAT SOME OF THE NEWER INFORMATION LOOKS LIKE. SO HOW DID THINGS LOOK IN APRIL? WE WERE EXPECTING TO END 2526 AT 102 DAYS, WHICH IS ABOVE OUR 90 DAY OPERATING RESERVE REQUIREMENT. THAT'S IN THE BOARD APPROVED FISCAL AND BUDGETARY STRATEGY. THOSE NUMBERS INCLUDE THE COVERAGE OF THE HEALTH FUND DEFICIT. AND FOR 2627, WE ARE COVERING THE HEALTH FUND DEFICIT. BUT THAT TAKES US TO 80 DAYS. AND AGAIN, THIS EVENING WILL SHOW YOU HOW THAT OUTLOOK HAS IMPROVED SINCE WE LAST VISITED WITH YOU. I'M NOW GOING TO TURN IT OVER TO KATHLEEN BROWN, AND SHE'LL WALK YOU THROUGH THE DISCUSSION ON COMPENSATION. GOOD EVENING, MADAM PRESIDENT, BOARD OF TRUSTEES AND DOCTOR SMITH THIS AFTERNOON. THIS EVENING I WILL BE WALKING YOU THROUGH WHERE WE ARE WITH COMPENSATION, WHERE WE ARE CURRENTLY AND LEADING INTO WHAT OUR RECOMMENDATIONS ARE FOR THE UPCOMING SCHOOL YEAR.

AND SO JUST GIVEN A LITTLE BIT OF BACKGROUND ON WHERE WE ARE WITH COMPENSATION, IT'S OUR CURRENT REALITY. WE HAVE BEEN TALKING ABOUT THIS AS A TEAM WITH YOU BOARD OVER THE LAST COUPLE OF YEARS AS IT RELATES TO WHERE WE SIT RELATED TO COMPENSATION IN FORT BEND ISD.

AND SO A COUPLE OF FACTS THAT WE WANT TO JUST TO START WITH THIS EVENING, IS THE FACT THAT WE HAVEN'T HAD A GENERAL PAY INCREASE DISTRICT WIDE IN THE LAST THREE YEARS. SO THE LAST TIME THERE WAS A GENERAL PAY INCREASE, THAT WAS WHEN WE HAD A VATRE, AND THAT WAS THREE YEARS AGO. THE OTHER PIECE THAT'S IMPORTANT FOR US TO TO TALK ABOUT IS THE FACT THAT WE HAVEN'T HAD AN EQUITY ADJUSTMENT IN SEVEN YEARS. AND SO WHAT AN EQUITY ADJUSTMENT DOES IS ON AN ANNUAL BASIS, IN A YEAR WHERE THERE EITHER IS A RAISE OR THERE IS NOT A RAISE, WE LOOK AND SEE WHAT ADJUSTMENT NEEDS TO BE MADE TO EMPLOYEES IN VARIOUS PAY GROUPS IN ORDER FOR US TO BE COMPETITIVE IN THE MARKET. AND SO WE HAVE NOT MADE EQUITY ADJUSTMENTS IN OUR DISTRICT IN THE LAST SEVEN YEARS. IT'S ALSO IMPORTANT FOR US TO KNOW THAT THE MARKET IS CONTINUING TO MOVE. AND SO MOVEMENT IS HAPPENING OUTSIDE OF OUR DISTRICT, IN NEIGHBORING DISTRICTS AND THOSE THAT WE LOOK AT AS OUR BENCHMARK PEERS. AND WHEN WE DON'T MOVE, MAKING EQUITY ADJUSTMENTS OR RAISES ACROSS THE BOARD, THAT THAT HAS AN IMPACT ON US. AND WE ARE CONTINUING TO BENCHMARK. AND THE BENCHMARKING THAT WE ARE LOOKING AT CONTINUOUSLY SHOWS THAT WE ARE BELOW OUR PEER DISTRICTS IN SOME AREAS. SO HOW DID WE GET HERE? RIGHT. SO WE DIDN'T GET HERE OVERNIGHT. IT'S IMPORTANT FOR US TO KNOW THAT. AND WE ARE VERY AWARE WE CAN'T GET OUT OF THIS OVERNIGHT. BUT CONSISTENT BUDGET CONSTRAINTS HAVE CAUSED US TO BE WHERE WE ARE TODAY. YOU JUST HEARD MR. GWEN TALKING ABOUT WHERE WE ARE AS IT RELATES TO OUR BUDGET, AND WE HAVEN'T MADE COMPENSATION ADJUSTMENTS TO OUR OVERALL SCHEDULE. SO IF YOU WERE TO GO ON OUR WEBSITE AND YOU LOOKED AT OUR COMPENSATION PLAN, OUR COMPENSATION PLAN WOULD HAVE PAY GROUPS THERE AND IT WOULD LIST A MINIMUM, A MIDPOINT AND A MAXIMUM FOR THOSE VARIOUS PAY GRADES, TYPICALLY IN ABOUT THREE TO EVERY 3 TO 5 YEARS. THOSE AMOUNTS WOULD CHANGE. WHEN YOU LOOK AT OURS, WE HAVE NOT MADE STRUCTURAL CHANGES AS IT RELATES TO OUR COMPENSATION STRUCTURE. ALSO, WE'VE CONTINUED TO EXPAND THE ROLES OF EMPLOYEES IN THE DISTRICT. AND SO THERE MAY BE MORE ON THEIR PLATE, BUT WE HAVE NOT EXPANDED THEIR PAY IN THOSE VARIOUS ROLES. AND OUR PEER DISTRICTS ARE CONTINUING TO MAKE THOSE REGULAR ADJUSTMENTS. EVEN NOW, IF WE'RE LOOKING AT WHICH WE ARE AT INDIVIDUAL DISTRICTS WHO ARE THINKING ABOUT WHAT THEY PLAN TO DO FOR STAFF NEXT YEAR, WHAT A RACE MAY LOOK LIKE FOR THEIR DISTRICT. THOSE THINGS ARE HAPPENING DURING THIS TIME OF THE YEAR. SO THE END RESULT FOR US IS THAT WE HAVE MARKET MISALIGNMENT. SO WHAT ARE THE IMPLICATIONS FOR US? WHAT DOES IT MEAN IF WE CONTINUE DOWN THIS PATH, IS THAT WE'LL CONTINUE TO HAVE PAY INEQUITY AND COMPRESSION. AND SO WHAT THAT LOOKS LIKE IS IF I'M IN A, LET'S SAY, A TEACHING POSITION, I GET MY EQUITY ADJUSTMENTS OR MY STEP EACH YEAR IF I'M A

[00:10:05]

AND SO BOARD, WE ARE VERY APPRECIATIVE, APPRECIATIVE OF YOU AND YOUR LEADERSHIP AND THE WORK OF THE TEAM, BECAUSE WE KNEW WE DID NOT HAVE 37 TO $40 MILLION AT THAT TIME, NOR DO WE NOW. AND SO WE LOOKED AT AN INNOVATIVE WAY TO MAKE SURE THAT WE WERE INCENTIVIZING THINGS FOR OUR STAFF AS IT RELATES TO COMPENSATION, AND THAT'S WHERE IT CAME. IT'S A WIN TO WORK IN FORT BEND. AND SO YOU CAN SEE HERE SOME OF THE INCENTIVES THAT WERE PROVIDED TO STAFF AT THAT TIME. THE STATE DID TWO THINGS. ONE, THE STATE HAD A ENACTED A TEACHER RETENTION ALLOTMENT AND A STAFF RETENTION ALLOTMENT. BUT THAT DID NOT TOUCH EVERYONE. AND WE ARE VERY AWARE OF THAT. AND SO HERE IN FORT BEND ISD, WE STARTED THINKING ABOUT WHAT CAN WE DO WITH THE RESOURCES THAT WE HAVE TO GIVE SOMETHING TO OUR STAFF MEMBERS. SO THE FIRST COLUMN SHOWS WHAT WE DID AS A DISTRICT IN OUR. IT'S A WIN TO WORK IN FORT BEND IN 25, 26.

AND SO THIS CURRENT YEAR, EVERYTHING THAT HAS A GREEN CHECK MARK, THERE IS SOMETHING THAT WAS IN PLACE FOR THE CURRENT YEAR THAT WE'RE IN. WE RAISED OUR STARTING TEACHER SALARY SCHEDULE AND THOSE 0 TO 2 YEARS, THOSE ARE THE YEARS THAT WERE NOT IMPACTED BY THE TEACHER RETENTION ALLOTMENT. THEY WERE NOT ELIGIBLE. AND SO AT THAT TIME LAST YEAR, WE MOVED OUR STARTING TEACHER PAY SCALE. WE DIDN'T MOVE IT A LOT, BUT THAT SMALL AMOUNT DID MAKE

[00:15:02]

[00:20:03]

THOSE ARE PROPERTIES THAT HAVE GONE FOR THAT HAVE BEEN UP FOR SALE OR HAVE SOLD FOR US OVER THIS LAST YEAR. AND SO WE'RE LOOKING AT THOSE ONE TIME LAND SALE REVENUE FUNDS TO BE A SHORT TERM COMPENSATION OPTION FOR US, BECAUSE JUST LIKE CONTINGENCY FUNDS, WE KNOW THAT THOSE LAND SALE FUNDS, ONCE THEY'RE GONE, THEY ARE GONE. AND SO IN LOOKING AT THE PLAN THAT WILL BE TALKING TO YOU MORE ABOUT TONIGHT, WE'RE LOOKING AT THOSE FUNDS BEING ABLE TO CARRY US, CARRY US FOR AT LEAST THREE YEARS WITH WHAT WE WOULD BE PROPOSING TO YOU.

ALL RIGHT. SO WHAT WOULD THE IMPACT BE AND THE OUTCOME OF THOSE TARGETED ADJUSTMENTS? WHAT DOES IT DO FOR US AS A DISTRICT ONE? THE FIRST PHASE, IT WOULD HELP US TO ADDRESS COMPRESSION IN THE MARKET MISALIGNMENT SO WE WOULDN'T BE ABLE TO DO ALL OF IT, BUT WE WOULD BE TARGETING SOME ROLES THAT FALL THE FURTHEST BEHIND OUR PEER DISTRICTS AND THAT ARE CREATING THAT COMPRESSION IN OUR COMPENSATION SCHEDULE. AND SO THOSE ARE THOSE TEACHER PATHWAY POSITIONS, OUR COUNSELORS, NURSES, THOSE POSITIONS. WE WOULD BE BE LOOKING AT THAT TO ADDRESS THE MISALIGNMENT THERE. WE'D ALSO BE FOCUSED ON THREE BIG GROUPS.

ONE ARE OUR BUS DRIVERS AND MONITORS. AND SO WE'VE SPENT A LOT OF TIME STUDYING WHAT'S GOING ON AROUND US. IT'S EASY FOR US TO SAY EVERYONE IS SHORT ON DRIVERS. THAT IS TRUE, BUT SOME ARE NOT AS SHORT AS WE ARE. AND SO WE ARE STUDYING AND LOOKING TO SEE WHAT THEY ARE DOING DIFFERENTLY. AND ONE OF THE THINGS IS, IS THAT THEY'RE PAYING THEIR DRIVERS WELL.

YOU'RE ABLE TO RECRUIT DRIVERS WHEN YOU ARE COMPETITIVE AS IT RELATES TO PAY AS WELL AS OUR MONITORS. AND SO THAT IS AN AREA IN WHICH WE WOULD BE FOCUSED. WE KNOW WE HAVE TO GET THE STUDENTS TO SCHOOL IN A TIMELY FASHION FOR THEM TO LEARN. AND SO WE'LL NEED BUS DRIVERS AND MONITORS TO BE ABLE TO EXECUTE THAT AT A HIGH LEVEL. WE'LL ALSO BE TARGETING EDUCATIONAL PROFESSIONAL ROLES. THOSE ROLES THAT I SPOKE WITH YOU ABOUT BEFORE, LOOKING AT OUR BENCHMARK DISTRICTS AND WHAT THAT WOULD LOOK LIKE. AND THEN WE'D ALSO BE LOOKING AT SELECTED STIPEND IN THOSE AREAS THAT WERE HIGHLIGHTED AS A PART OF OUR TASK COMPENSATION STUDY, ATHLETICS, THOSE HARD TO FILL POSITIONS. SO WHAT WOULD THE TRADE OFF BE? THIS PLAN WOULD NOT FULLY RESTORE OUR COMPETITIVENESS. WE KNOW IT WON'T GET US EXACTLY WHERE WE WANT TO BE, BUT IT WILL GET US MOVING INTO THE RIGHT DIRECTION. SO IT'S A PARTIAL FIX FOR US CLOSING THOSE THOSE LARGEST GAPS THAT WE HAVE AND WHERE WE HAVE THAT COMPRESSION IN OUR SYSTEM, IT IS GOING TO TAKE AN INVESTMENT FOR US. AND RIGHT NOW THAT INVESTMENT WOULD LOOK LIKE $6.1 MILLION. SO WHAT WOULD THAT $6.1 MILLION DELIVER IMPROVEMENT IN OUR RECRUITMENT AND RETENTION OF OUR CRITICAL STAFF MEMBERS. IT WOULD ALSO LOOK LIKE US REDUCING THAT COMPRESSION IN THOSE INTERNAL EQUITIES THAT WE HAVE AS AN ORGANIZATION, AS WELL AS HELPING US TO BE VERY PREDICTABLE AND STRATEGIC AS WE LOOK AT A PHASED INVESTMENT PROCESS AS AS IT RELATES TO COMPENSATION IN OUR STAFF, HELPING US TO MAKE OUR EMPLOYMENT BRAND STRONGER OVER TIME. AND SO WE ARE CONSISTENTLY AND CONSTANTLY LOOKING AT INFORMATION RELATED TO INDIVIDUALS IN OUR DISTRICT, IF THEY CHOOSE TO EXIT THE ORGANIZATION, IF THEY'RE COMING TO THE ORGANIZATION. AND ALTHOUGH COMPENSATION IS NOT THE ONLY THING, IT IS A SIGNIFICANT FACTOR IN OUR RECRUITMENT AND OUR RETENTION EFFORTS. SO AT THIS TIME, I'LL TURN IT BACK OVER TO MR. GWEN TO TALK ABOUT THE GENERAL FUND UPDATE. THANK YOU. KATHLEEN. SO I MENTIONED EARLIER WE HAVE UPDATED INFORMATION ON SAVINGS ACHIEVED FROM CONSOLIDATIONS, BOUNDARY CHANGE AND ENROLLMENT DECLINE. AND WE'LL BE SHARING THAT INFORMATION NOW, AS WELL AS THE SCENARIOS RELATED TO COMPENSATION THAT KATHLEEN MENTIONED. SO IF YOU RECALL, WE IDENTIFIED $10.9 MILLION IN STRATEGIC REDUCTIONS IN CENTRAL ADMINISTRATION THAT WE'VE SHARED WITH YOU PREVIOUSLY, AND THAT INCLUDED ELIMINATING 116 VACANT POSITIONS, WHICH IS NET OF 30 POSITIONS THAT ARE CURRENTLY FILLED AND ARE BEING HELD HARMLESS. HR HAS BEEN WORKING VERY DILIGENTLY BEHIND THE SCENES TO PLACE STAFF THAT HAVE BEEN IMPACTED BY BOUNDARY CHANGES, CONSOLIDATIONS AND ENROLLMENT DECLINE. AND TO DATE, WE'VE IDENTIFIED $8.8 MILLION IN SAVINGS, AND THIS WAS PRIMARILY ACHIEVED BY PLACING STAFF IMPACTED BY THE BOUNDARY CHANGES AND CONSOLIDATIONS INTO POSITIONS THAT WERE VACANT AND FOR WHICH THEY WERE QUALIFIED. WITH THOSE ADDITIONS, THE SAVINGS IN THE GENERAL FUND NOW TOTAL $19.7 MILLION, AND WE'VE ALSO IDENTIFIED $2.5 MILLION IN NEW REVENUES THAT WILL BE GENERATED. IF YOU'RE IF YOU FOLLOW THE NEWS, YOU MAY BE AWARE THAT THE FED HAS PAUSED

[00:25:01]

SO WHAT IS CURRENTLY INCLUDED IN THE BUDGET THAT IS OUTSIDE OF WHAT MISS BROWN JUST DISCUSSED, IS THE DIFFERENTIATED TEACHER STEP THAT WAS FUNDED BY THE VA TIER.

THAT WAS INCLUDED IN THE NUMBERS THAT YOU JUST SAW. IN ADDITION, IT ALSO INCLUDES YEAR TWO OF THE ONE TIME APPRECIATION SUPPLEMENT THAT WAS FUNDED BY THE DISASTER PENNIES THIS YEAR. SO THAT INFORMATION WAS INCLUDED IN THE NUMBERS YOU JUST SAW. IN ADDITION, WE HAVE THE STATE RETENTION AND STAFF RETENTION ALLOTMENTS THAT WERE FUNDED BY THE STATE, ALTHOUGH THOSE AMOUNTS ARE NOT INCREASING, THE AMOUNTS THAT THE STAFF RECEIVED THIS YEAR WILL CARRY FORWARD INTO NEXT YEAR, AND THEY WILL CONTINUE TO BE PAID THOSE AMOUNTS. AND AGAIN, THAT FUNDING COMES FROM THE STATE. AND THEN THE FINAL ITEM THAT YOU SEE ON HERE IS THE $2 MILLION THAT WE HAD FOR THE HOLD HARMLESS ON THE STRATEGIC REDUCTIONS, AND THAT IS FOR STAFF THAT MAY HAVE BEEN IMPACTED BY CONSOLIDATIONS AND BOUNDARY CHANGES, AS WELL AS THOSE STRATEGIC REDUCTIONS THAT IS ACCOUNTED FOR IN OUR BUDGET.

AND SO THE NEW ITEMS THAT WERE JUST DISCUSSED ARE THE TARGETED COMPENSATION ADJUSTMENTS. THAT INCLUDES $1.7 MILLION FOR BUS DRIVERS AND MONITORS, $3.5 MILLION FOR EDUCATIONAL AND PROFESSIONAL ROLES, AND THEN 0.9 MILLION, OR JUST UNDER $1 MILLION FOR SELECTED STIPENDS FOR A TOTAL AMOUNT OF $6.1 MILLION. AND SO FROM A FINANCIAL PERSPECTIVE, THIS IS HOW THAT WOULD LOOK. THE BLUE COLUMN THAT YOU SEE ON THE LEFT IS OUR CURRENT BASELINE. AND SO THAT INCLUDES THE DIFFERENTIATED TEACHER STEP, AS WELL AS YEAR TWO OF THE ONE TIME SUPPLEMENT. AND THE T, R, A AND S ARE FUNDED BY THE STATE. THAT LEFT US AT 87 DAYS. IF YOU RECALL, IF WE WERE TO ADD IN THOSE TARGETED COMPENSATION ADJUSTMENTS AND FUND THEM WITH THE PROCEEDS FROM THE LAND SALES THAT WERE MENTIONED, THE TOTAL COST OF THAT IS $6.1 MILLION. THAT LEAVES US IN THE SAME POSITION AS WE WERE BEFORE, BECAUSE WE'RE NOT GENERATING ADDITIONAL REVENUES ABOVE THE BEYOND THE EXPENDITURES, HOWEVER, WE TOOK ONE ADDITIONAL LOOK AS WHAT WOULD HAPPEN IF WE WERE TO JUST DO THE DIFFERENTIATED TEACHER STEP YEAR TWO SUPPLEMENT AND MAINTAIN THE T, R A AND SRA AS THEY ARE CURRENTLY IN THE BUDGET, SO IT DOES NOT INCLUDE THOSE TARGETED REDUCTIONS. AND WE WERE TO USE A PORTION OF OUR LAND SALES. WE CAN GET TO 90 DAYS. AND SO THE LAST SCENARIO, SCENARIO TWO THAT YOU SEE ON THERE MAINTAINS THAT. THE DRAWBACK TO THAT IS THAT IT THE TARGETED COMPENSATION ADJUSTMENTS ARE NOT INCLUDED. BUT IN SCENARIO ONE WHERE WE INCLUDE THAT WE ARE AT 87 DAYS.

AND I DO WANT TO MENTION HERE IT IS NOT ON THE SLIDE. THERE WAS ONE ADDITIONAL SCENARIO THAT WE LOOKED AT, AND THAT IS, WHAT IF WE WERE TO WANT TO MAINTAIN A 90 DAYS, WHAT COULD WE DO IN TERMS OF THE COMPENSATION ADJUSTMENTS THAT WERE DISCUSSED? AND IN LOOKING AT THAT, WHAT WE CAN AFFORD TO DO IS THE $1.7 MILLION THAT WAS SPECIFICALLY IDENTIFIED FOR BUS DRIVERS THAT COULD BE DONE AND MAINTAIN A 90 DAY OPERATING RESERVE. THAT'S NOT REFLECTED ON THE SLIDE, BUT THAT IS A POTENTIAL POSSIBILITY THAT WE COULD DO AND MAINTAIN A 90 DAY OPERATING RESERVE. SO WHAT IS IT THAT WE WOULD RECOMMEND AS AN ADMINISTRATION? OUR RECOMMENDATION WOULD BE TO FOLLOW RECOMMENDED SCENARIO NUMBER TWO, AND THAT WOULD BE TO USE THE LAND SALE PROCEEDS TO MAINTAIN THE 90 DAY OPERATING RESERVE. WE WOULD AWAIT THE ADDITIONAL LAND SALE PROCEEDS THAT MISS BROWN MENTIONED THAT STILL ARE

[00:30:05]

[00:35:04]

THAT SPEND DOWN PLAN WILL BE COMPLETED AT THE END OF THIS FISCAL YEAR. AND SO THAT WILL NOT BE IMPACTING US GOING INTO NEXT YEAR FOR 2627. THERE ARE NO EXPECTED CHANGES TO THE PRICES CHARGED FOR THE REGULAR BREAKFAST AND SCHOOL LUNCHES. HOWEVER, THERE ARE ADJUSTMENTS TO SOME A LA CARTE SNACK PRICES THAT STUDENTS HAVE THE OPTION TO PURCHASE THAT ARE OUTSIDE THE NATIONAL SCHOOL LUNCH PROGRAM, AND SO THERE MAY BE ADJUSTMENTS THERE, BUT THERE ARE NO ADJUSTMENTS TO THE STANDARD MEAL PRICE REVENUES FOR 2627, WHICH IS THE LAST COLUMN ON THE RIGHT, ARE BUDGETED AT 43.6 MILLION, WITH EXPENDITURES MATCHING THAT AT ALSO 43.6 MILLION. SO THIS FUND IS EXPECTED TO BREAK EVEN. FUND BALANCE WOULD REMAIN AT $24.2 MILLION, AND THAT PROVIDES 168 DAYS OF OPERATING RESERVE. THE FUND HAS A TARGETED FUND BALANCE OF 90 DAYS, AND USDA WILL NOT ALLOW YOU TO EXCEED 180 DAYS. SO WE'RE BELOW THE USDA THRESHOLD, BUT ABOVE OUR INTERNAL TARGET. SO THIS FUND IS EXPECTED TO END WITH A POSITIVE OUTLOOK FOR 2627. TO WRAP THINGS UP IN THE MONTH OF MAY, WE STILL HAVE TWO ADDITIONAL SMALL GROUP MEETINGS WITH BOARD MEMBERS THAT ARE SCHEDULED THIS WEEK. AND THEN AT THE END OF THIS MONTH, WE WILL BE ADVERTISING THE BUDGET AND TAX RATE PUBLIC HEARING.

AND SO THAT NOTICE WILL GO TO THE PAPERS FOR ADVERTISING, FOR THE PUBLIC HEARINGS THAT WILL BE HELD ON THE BUDGET IN JUNE AND JUNE. WE WILL HAVE THE PUBLIC HEARING ON THE BUDGET AND THE TAX RATE, AND THEN THE BOARD IS SCHEDULED TO VOTE ON THE ACTUAL BUDGET AT THE LAST MEETING IN JUNE. AND THEN JUST ITEMS THAT WILL OCCUR AFTER THAT IN JULY. THE DISTRICT WILL RECEIVE THE CERTIFIED TAX ROLL FROM THE CENTRAL APPRAISAL DISTRICT IN AUGUST. TEA PUBLISHES THE MAXIMUM COMPRESS RATE, WHICH IS THE FINAL PIECE OF INFORMATION NEEDED TO ADOPT THE TAX RATE IN SEPTEMBER. AND JUST I'LL REITERATE HERE THAT BASED ON WHERE WE ARE TODAY, YOU CAN EXPECT THE TAX RATE TO GO DOWN FOR NEXT YEAR BY $0.06. AND THAT CONCLUDES OUR PRESENTATION. AND WE'LL BE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU, MR. GWEN AND MISS BROWN. WE'LL NOW TAKE QUESTIONS FROM THE TRUSTEES. MISS GALLAGHER, THANK YOU FOR THE PRESENTATION. THANK YOU, DOCTOR SMITH, AS WELL FOR ONE OF OUR FIRST MEETINGS AROUND THIS BUDGET THAT YOU DID LAST WEEK. I DO WANT TO MAKE SURE MYSELF AND OUR COMMUNITY UNDERSTAND.

WE'RE SEVEN YEARS BEHIND WHEN IT COMES TO GIVING RAISES. AND IT SOUNDS LIKE WE'VE JUST KIND OF MOVED THAT DECISION CONTINUES TO MOVE IT DOWN TO THE NEXT YEAR. I'M THANKFUL THAT WE'RE DEALING WITH IT NOW. CAN YOU FIRST TELL ME WHY NOW VERSUS THEN? I UNDERSTAND WE NEED TO DO IT, BUT I'M JUST TRYING TO SAY WHAT HAS WHAT HAS CHANGED WITH THE STRATEGY THAT WE'RE WE'RE LOCKING DOWN ON THE DECISIONS TODAY TO OR NOW TO MOVE FORWARD WITH MAKING SOME ADJUSTMENTS TO OUR FUNDS. IS THERE A REASON WHY WE DIDN'T DO IT BEFORE? DO YOU KNOW, THAT'S REALLY THE QUESTION. YES, YES. SO I'M GOING TO ASK MR. GWEN TO ELABORATE ON HOW WE GOT HERE. A LOT OF IT WAS STEMMING FROM THE COVID SITUATION THAT MANY DISTRICTS EXPERIENCED IN 2020.

AND THEN THERE WERE A FEW DECISION POINTS THAT WERE MADE AT THAT TIME. I IF I REMEMBER CORRECTLY, I BELIEVE BOTH OUR BOARD PRESIDENT AND ADDIE, I THINK YOU ALL WERE ON THE BOARD AT THAT TIME, BUT CORRECT ME IF I'M WRONG, I THINK YOU GUYS WERE ON THE BOARD AT THAT TIME.

AND SO YOU MAY BE FAMILIAR WITH SOME OF THE STRATEGIC DECISIONS THAT WERE MADE AT THAT TIME, WHICH WERE THE BEST DECISIONS TO MAKE AT THAT TIME. IT JUST DIDN'T PAN OUT. AND IT HAS IMPACTED THE DISTRICT IN THE OUT YEARS. I'M GOING TO ASK MR. GWEN TO BE MORE SPECIFIC ON THOSE DECISION POINTS, AND I THINK THAT WILL ADDRESS THE QUESTION. AND THEN THE SECOND PART, BEFORE I TURN IT OVER TO MR. GWEN, IS, YOU KNOW, WHEN I THINK ABOUT WHY NOW, OF COURSE, ONE, WE NEED TO STAY COMPETITIVE AND RECRUITING AND RETAINING QUALITY STAFF IS CRITICAL FOR US. SO WE'VE GOT TO BE INNOVATIVE AND CREATIVE AND FIGURE OUT HOW WE CAN TAKE INCREMENTAL STEPS TO GET US TO A MUCH BETTER PLACE. THE SECOND THING IS WE HAVE TO MAINTAIN THE SERVICE MODEL THAT HAVE HAS MADE US FOR MEN AND WHAT PEOPLE AND PARENTS AND FAMILIES REALLY APPRECIATE ABOUT BEING IN OUR SCHOOL DISTRICT. AND SO YOU NEED RESOURCES TO BE ABLE TO

[00:40:04]

YEAH. SO JUST JUST TO BE CLEAR, I'M IN AGREEMENT WITH US DEALING WITH THIS NOW. I JUST WANTED TO KIND OF UNDERSTAND THE STORY, HOW WE GOT THERE, BECAUSE SOME OF THE ITEMS THAT WE SHARED WERE SHARED TONIGHT WERE REALLY STOPGAPS. AND SO THOSE ARE SOME OF MY FOLLOW UP QUESTIONS THAT I DO HAVE. I UNDERSTAND THAT WE HAVE THE $6.1 MILLION OR THE $5.5 MILLION IF WE USE SCENARIO TWO IN ORDER FROM LAND, LAND, LAND SALES, WHAT PERCENTAGE OF THAT IS FROM LAND SALES? I'D LIKE TO UNDERSTAND THAT. AND THEN THE REMAINING LAND SALES, IS THAT SOMETHING THAT WE ARE GOING TO BE USING IN THE OUTER YEARS? IS THAT WHAT WHAT IS THERE ADDITIONAL DO WE HAVE A PLAN FOR THE REMAINING LAND FUNDS? AND THEN HOW DO WE MOVE FORWARD IN THIS 36 TO $40 MILLION DEFICIT THAT WE HAVE? HOW DO WE MOVE FORWARD TO GET A MORE SUSTAINABLE PLAN? I THINK MRS. BROWN SAID EARLIER. DOCTOR BROWN SAID EARLIER, IT'S NOT SOMETHING THAT WE CAN JUST TAKE THE BAND-AID OFF AND FIX IMMEDIATELY. BUT HOW DO WE CREATE A PLAN THAT GETS US UP TO WHERE WE'RE STARTING TO SEE INCREMENTAL CHANGES IN OUR EVERYDAY BUDGET VERSUS THE FIX? YES, YES. WE'LL START WITH THE 2020 AND HOW WE GOT HERE, AND THEN WE CAN TRANSITION TO THE OTHER QUESTIONS. YES. SO YOU MAY RECALL GOING BACK TO 2020 THAT THE FEDERAL GOVERNMENT RELEASED A MULTI-MILLION BILLION DOLLAR BUDGET THAT PROVIDED DISTRICTS WITH ESSER FUNDING. AND SO WHEN OUR DISTRICT RECEIVED THOSE FUNDS, LIKE DOCTOR SMITH MENTIONED, EACH DISTRICT RESPONDED DIFFERENTLY. AND PART OF THE WAY THAT OUR DISTRICT USED THOSE FUNDS WAS RELATED TO CONTACT TRACING, WHICH HAD A PRETTY SIGNIFICANT COST. AND SO WE UTILIZE THOSE FUNDS TO DO THAT. AND SO THAT PREVENTED US FROM DOING OTHER THINGS WITH THOSE FUNDS. AND THEN THE SECOND ITEM THAT PROVIDED SOME STRESS ON THE BUDGET WAS YOU MAY RECALL AROUND THAT TIME FRAME, WE ALSO DID A COMPENSATION ADJUSTMENT THAT WAS PERMANENT. WELL, THE FOLLOWING YEAR, ENROLLMENT DID NOT MATERIALIZE, AND WE ENDED UP HAVING TO FUND A PORTION OF THAT FROM FUND BALANCE. AND SO BETWEEN THOSE TWO ACTIONS, WE DREW DOWN FUND BALANCE PRETTY SIGNIFICANTLY. WHEREAS OUR PEER DISTRICTS DID NOT. AND SO THEY WERE ABLE TO MAKE SOME ADJUSTMENTS USING THEIR FUND BALANCES ALONG THE WAY TO FUND THOSE ITEMS IN A WAY THAT WE HAVE NOT BEEN ABLE TO. AND SO, LIKE DOCTOR SMITH MENTIONED, WE WERE IN A UNIQUE SITUATION AT THE TIME WE MADE THE DECISION AT THE TIME THAT WE FELT WAS BEST FOR OUR DISTRICT. AND SO ONE OF THE OUTCOMES OF THAT WAS IT PROVIDED LESS FLEXIBILITY LONG TERM TO DO RAISES. AND SO I THINK HE TOUCHED ON THE POINT IS THAT TODAY WHERE WE ARE IS RECOMMENDING TO MAKE SUBTLE ADJUSTMENTS, BUT AT THIS POINT, WE DIDN'T HAVE THE FLEXIBILITY BECAUSE WE HAD USED SOME OF THOSE FUNDS FOR OTHER PURPOSES THAT OUR PEER DISTRICTS DID NOT. AND THEN AGAIN, WITH ESSER FUNDING EXPIRING, ONCE THOSE FUNDS WERE GONE, IT LIMITED ANY ABILITY. WE HAD TO DO OTHER THINGS WITH THOSE FUNDS OR AND THOSE WERE NOT REPLACED BY THE FEDERAL GOVERNMENT. AND I THINK YOU HAD ONE OTHER QUESTION THAT I. SO THE OTHER QUESTION THE OTHER QUESTION WAS AROUND THE THE LAND FUNDING. WHAT PERCENTAGE ARE WE USING FOR THIS SCENARIO? AND IS THERE IDENTIFIED OTHER AREAS WHERE YOU'RE GOING TO. WE'RE GOING TO USE THE REMAINING FUNDS. SO I'M GOING TO DO. THERE'S TWO PARTS TO THIS ANSWER. THE FIRST ONE IS. AND I'M GOING TO MAKE SURE I'M SAYING THE NUMBER CORRECT.

BUT WE'RE EXPECTING ROUGHLY $30 MILLION IN TOTAL IS THAT CORRECO OVER, WE'LL JUST SAY THE NEXT 12 MONTHS, WHICH IS PROBABLY SPREADING IT OUT TOO FAR BECAUSE WE HAVE RECEIVED SOME OF THOSE LAND SALES FUNDS WILL BE RECEIVING THAT THE $6.1 MILLION THAT WE'VE IDENTIFIED COULD BE FUNDED, WE'LL SAY, BETWEEN 2 TO 4 YEARS WITH THOSE FUNDS, ASSUMING NO OTHER CHANGES TO THE BUDGET. BUT AS DOCTOR SMITH HAS SHARED, WE'RE ON A STRATEGIC JOURNEY WITH THE BUDGET AND WILL BE LOOKING AT OPTIONS THAT WE CAN TAKE TO CONTINUE TO BRING DOWN THAT DEFICIT. THAT SHOULD THEN ALLOW US TO FUND THOSE RAISES ON A PERMANENT BASIS. SO EVEN THOUGH WE'RE FUNDING IT WITH ONE TIME REVENUE, IT GIVES US THE FLEXIBILITY TO FIND ADDITIONAL SAVINGS OVER THAT THREE YEAR PERIOD THAT WOULD PERMANENTLY FUND WHAT WE ARE PROPOSING. AND THEN I WOULD ADD AS WELL, IN TERMS OF THE 2 TO 3 YEAR PLAN TO REDUCE THE DEFICIT, WHEN YOU

[00:45:08]

THANK YOU. THANK YOU, MR. SHOAFF, MISS VICKI. THANK YOU FOR THIS PRESENTATION. TRUSTEE HEYLIGER. I HAD A SIMILAR QUESTIONS ON SLIDE NINE FOR THE WINS. THE. I JUST WAS CURIOUS AND I FORGIVE ME IF THIS IS SOMEWHERE ELSE. AND I DIDN'T REALIZE THE EMPLOYEE WELLNESS DAYS. HOW I KNOW WE'RE CONSIDERING NOT CONTINUING THEM. HOW MUCH DID THEY COST US DOLLAR WISE, AS WELL AS THE SIGNING BONUS. AND IF YOU DON'T HAVE THAT ANSWER NOW AND JUST THAT'S FINE. I JUST WANT TO WE'LL PULL THAT INFORMATION FOR YOU. IT'S EASILY ACCESSIBLE.

THANK YOU. AND I'LL JUST THE THING THAT I WOULD ADD TO THAT QUESTION, MISS, IS JUST TO RECALL THAT PART OF THE REASON THAT THEY ARE SLATED TO EXPIRE ISN'T BECAUSE WE DON'T WANT TO CONTINUE DOING THEM, IT'S THAT THEY WERE FUNDED WITH THE DISASTER PENNIES, AND THOSE WILL EXPIRE AT THE END OF THIS YEAR. AND SO BUT WE'LL PROVIDE YOU WITH THE COST OF THOSE WERE.

THANK YOU, MISS. MISS CHARANIA. OKAY, SORRY. SO ON PAGE 15. WHERE IT SAYS THAT THE STRATEGIC STRATEGIC REDUCTIONS 8.8 MILLION WAS WAS FROM THE BOUNDARY CHANGES. IS THAT WAS THAT JUST THE ONES THAT WE VOTED ON THIS YEAR, OR DOES THAT INCLUDE ALDRIDGE AND MISSION CONSOLIDATIONS AS WELL? SO ALDRIDGE AND MISSION CONSOLIDATIONS WERE INCORPORATED INTO THE BUDGET FOR THIS CURRENT SCHOOL YEAR. SO WHEN I SAY THAT THEY ARE NOT INCLUDED IN THAT NUMBER, THIS IS JUST INCLUSIVE OF WHAT THE BOARD VOTED FOR TO GO INTO EFFECT FOR NEXT YEAR. ALDRIDGE AND MISSION ARE CURRENTLY INCORPORATED INTO OUR BUDGET FOR 2526. OKAY, SO 8.8 IS JUST FROM THE SEVEN CLOSURES OR CONSOLIDATIONS THAT WE HAD.

THAT IS CORRECT. IN ADDITION TO THE BOUNDARY CHANGES. GOT IT. OKAY. THANK YOU. AND THEN PAGE 18. SO SORRY. YOU'RE GONNA HAVE TO REMIND ME FROM THE LAND SALES THAT WE'VE ALREADY HAD, HOW MUCH HAVE WE RECEIVED? IS IT 6.1? IS THAT WHAT WE'RE LIKE? WE GOT. AND THAT'S WHAT WE'RE LOOKING TO SPEND. YES, WE'RE UP 7.6. ABOUT 7.6 MILLION IS WHAT WE HAVE CURRENTLY RECEIVED. OR WE THEN LET ME BACK UP THAT WE WILL HAVE RECEIVED BY THE CLOSE OF THIS FISCAL YEAR BASED ON PROPERTIES THAT HAVE BEEN APPROVED FOR SALE. OKAY. AND THEN THE ONES THAT ARE PENDING THAT HAVEN'T SOLD YET, WE EXPECT TO GET THEM IN THE NEXT, I GUESS, 26, 20, 26, 27 SCHOOL

[00:50:01]

AND I WOULD IMAGINE THAT THAT HAS HELPED THE DRIVER ATTENDANCE FOR THE SCHOOL YEAR.

YES, MA'AM. YOU ARE ABSOLUTELY CORRECT. ALL OF THE THINGS THAT ARE LISTED ON THE WINDS HAVE ACTUALLY PLAYED OUT TO BE A WIN FOR US AS WELL. THE RECOMMENDATION THAT WE'RE BRINGING TONIGHT AND INCLUDES WHAT WE WOULD WANT AS A FIRST SWING, A FIRST BITE AT THIS ELEPHANT. BUT THERE ARE OTHER THINGS LISTED THAT WE WOULD WANT TO CONSIDER. AND ONE OF THOSE THINGS THAT IS THE PERFECT ATTENDANCE FOR TRANSPORTATION. AND SO WE WOULD BRING THAT IF THAT IS INCLUDED AT A AT A LATER TIME. AND CURRENTLY THE 1.7 MILLION DOES NOT INCLUDE THAT. CORRECT. THE 1.7 DOES INCLUDE SOME DIFFERENT THINGS AS IT RELATES TO DRIVERS, THOUGH. LET ME GO TO IT. IT IT DOES SOMETHING DIFFERENT. WHEN WE LOOKED AT THE BUS DRIVER PIECE, LET ME FIND IT SO I CAN SPEAK CORRECTLY ABOUT IT THE OTHER WAY. OKAY. IT INCLUDES SOME THINGS THAT WE DID NOT HAVE IN PLACE AT FIRST. SO ONE OF THE THINGS IS WE WOULD BE.

HERE YOU GO, BRIAN, BECAUSE I DON'T EVEN SEE IT. 17 IT WOULD BE IT WOULD BE LOOKING AT SOME SIGN AND BONUSES RELATED TO OUR DRIVERS. SO IN ADDITION TO CHANGING PAY FOR OUR DRIVERS, OUR STARTING PAY FOR DRIVERS AND MONITORS, IT ALSO INCLUDES SOME OTHER THINGS AS IT RELATES TO A SIGN ON BONUS. ONE OF THE AREAS THAT IS A CHALLENGE FOR US IS THAT WE FIND PEOPLE WHO ARE INTERESTED IN DRIVING. WE GET THEM HERE AND WE SPEND A LOT OF TIME TRAINING THEM TO DO THE JOB THAT WE NEED THEM TO DO. THE SIGNING BONUS THAT YOU SEE, THAT YOU SEE HERE IS SPECIFICALLY FOR INDIVIDUALS WHO ALREADY COME TO US READY TO DRIVE THE BUS ON DAY ONE. IT WOULD BE A SIGNIFICANT SIGN ON BONUS THAT WILL HELP US FILL THOSE POSITIONS BEFORE SCHOOL STARTS. OKAY. THANK YOU, I APPRECIATE, CAN I JUST ONE THING JUST FOR THE BOARD TO CONSIDER. SO IF WE MADE A BUDGET AMENDMENT, LET'S SAY AROUND OCTOBER ISH, OF COURSE WE MISS THAT CRITICAL PERIOD TO GET OUR NEW STAFF, BUT WE WOULD HAVE BEEN IN SCHOOL FOR A LITTLE OVER A MONTH BEFORE WE WERE ABLE TO REWARD AND PROMOTE AND COMMUNICATE TO ALL OF OUR OTHER STAFF. SO JUST WANT TO GIVE YOU THAT PERSPECTIVE. IF WE SINCE WE ARE IN A TIGHT SITUATION, WE HAVE TO BE STRATEGIC. WHEN WE TAKE THAT APPROACH, BE JUST A LITTLE OVER A MONTH THAT WE WOULD HAVE BEEN IN SCHOOL, THAT WE WOULD BE BRINGING A BUDGET AMENDMENT.

AND THEN, YOU KNOW, IT WOULD KICK IN THE ADDITIONAL FOR STAFF. OKAY, SORRY, SORRY. GO AHEAD. AND DOCTOR SMITH, IF I MAY ADD TO THAT, THE OTHER THING FOR US TO REMEMBER BOARD IS HOW WE PAY. SO WE HAVE INDIVIDUALS WHO START IN JULY AND THEY START GETTING THEIR FIRST CHECK IN JULY. WE HAVE ANOTHER GROUP WHO THEY DON'T START GETTING THEIR PAY UNTIL AUGUST, AND THEN THAT FINAL GROUP STARTS GETTING THEIR TEN MONTH EMPLOYEES. THEY START GETTING THEIR PAY IN SEPTEMBER. AND SO ABOUT THE TIME THAT WE WOULD BE BRINGING THE RECOMMENDATION TO YOU TO POTENTIALLY AMEND THE BUDGET, A LOT OF PEOPLE THAT WE'RE TALKING ABOUT, THEY WOULD BE ONE CHECK OFF. THEY WOULD HAVE GOTTEN THEIR FIRST CHECK IN

[00:55:04]

IT CARRIES THE WEIGHT OF POLICY. IT'S THE BOARD STRATEGIC OR FISCAL AND BUDGETARY STRATEGY THAT GUIDES STAFF TO MAINTAIN THE 90 DAYS. AND SO YOU'RE ASKING THE QUESTION, COULD.

THERE'S NOT ANYTHING WE WOULD HAVE TO DO WITH TEA THE BOARD WOULD HAVE TO MAKE AN INTENTIONAL VOTE TO SAY, YES, WE'RE OKAY WITH GOING BEYOND OR GOING BELOW 90 DAYS. THE CAUTIONARY NOTE THAT I WOULD PROVIDE TO YOU IS THAT DURING THAT PROCESS, I MENTIONED THAT WE HAVE A BOND TRANSACTION TOMORROW. WE HAVE REPRESENTED TO THE RATING AGENCIES THAT WE HAVE A 90 DAY OPERATING RESERVE REQUIREMENT. AND SO I WOULD CAUTION YOU, IF YOU MAKE THAT DETERMINATION, IT COULD IMPACT YOUR FUTURE BOND RATINGS, WHICH WOULD THEN IMPACT THE INTEREST THAT YOU'RE PAYING ON YOUR DEBT. SO CAN IT BE DONE? YES, IT CAN, BUT I WOULD CERTAINLY CAUTION AGAINST DOING THAT. AND IT AGAIN, THERE'S NOT ANYTHING YOU HAVE TO DO THROUGH TEA IT'S A LOCAL DECISION. UNDERSTOOD. YEAH. I'M EXPLAIN. I WAS GOING TO SAY MAYBE DIVE IN A LITTLE BIT FURTHER ABOUT WHY WE CREATED THAT, WHY WE DO THAT, AND WHY IT'S NOT ADVISABLE FOR US TO GO BELOW THAT. RIGHT. SO ONE OF THE KEY ASPECTS OF THE 90 DAY OPERATING RESERVE REQUIREMENT IS IN THE EVENT THAT THERE'S EVER A, ANY TYPE OF, OF DOWNTURN THAT'S UNEXPECTED, IT PROVIDES A CUSHION THAT YOU CAN ACCESS IN ORDER TO OFFSET THAT IMPACT.

AND SO ONE OF THE KEY TIMES OR A NUMBER OF KEY TIMES WE'VE USED IT IS DURING DISASTERS, IS THAT WHEN WE HAVE BUILDINGS THAT ARE DAMAGED, WE HAVE A FUND THAT WE CAN USE IMMEDIATELY TO BEGIN MAKING THOSE REPAIRS WITHOUT HAVING TO GO TO OUR BOND FUNDS AS WE WAIT ON INSURANCE PROCEEDS TO COME IN. SO THAT'S ONE ASPECT WHERE IT PROVIDES THAT. AND PART OF THE REASON IT WAS ENACTED. THE OTHER IS IF THE STATE IS EVER SLOW IN PROVIDING PAYMENTS TO THE DISTRICT, IT'S ANOTHER LAYER THAT WE HAVE THAT PROVIDES SOME LAYER OF PROTECTION TO US. BUDGETARILY SO THAT WE'RE NOT READING A REACHING A POINT OF, OF FINANCIAL DISTRESS BECAUSE WE'VE SPENT MONEY THAT WE'RE, WE'RE NOT EXPECTING RECEIVING OR TO RECEIVE. AND SO IN SHORT, ALTHOUGH IT'S SIMILAR TO A RAINY DAY FUND, I DON'T CALL IT A SAVINGS ACCOUNT BECAUSE WE DON'T DRAW FROM IT, BUT IT'S THERE TO ACT AS A SAFETY BUFFER FISCALLY FOR THE DISTRICT. IN THE EVENT ANY TYPE OF UNFORESEEN ITEMS HAPPEN. AND AGAIN, I WOULD SAY, YOU KNOW, HOW OFTEN DOES IT HAPPEN? HURRICANE BERYL WAS ONE INSTANCE. CERTAINLY DURING COVID IT WAS UTILIZED AND THEN JUST VARIOUS OTHER WEATHER EVENTS THAT WE'VE HAD OVER THE YEARS. IT'S PROVIDED THAT STABILITY THAT WE NEED WITHOUT HAVING TO WAIT TO DO REPAIRS, BECAUSE WE'RE WAITING ON INSURANCE PROCEEDS OR SOME OTHER REIMBURSEMENT, AND IT IMPACTS OUR DEBT. THAT'S I TOUCHED ON THAT, BUT ONE OF THE THINGS CONSISTENTLY THAT THE RATING AGENCIES LOOK FOR IS, DOES THE GOVERNING BODY HAVE A POLICY DICTATING HOW FUND BALANCE IS MANAGED? AND WE ARE ABLE TO SAY YES FOR THAT. THE FISCAL AND BUDGETARY STRATEGY THAT WE HAVE GOES WELL BEYOND MY TENURE, AND I THINK PROBABLY EVEN THE PRIOR CFO THAT'S PROBABLY BEEN IN PLACE FOR ABOUT 20 YEARS. AND THAT'S SOMETHING THAT IT DOESN'T MATTER IF YOU HAVE IT, IT THE RATING AGENCIES ARE LOOKING TO SEE IF YOU ADHERE TO IT. AND WE HAVE CONSISTENTLY DONE THAT OVER TIME. AND AS I MENTIONED, WHERE THAT BENEFITS US, IT'S WHEN YOU HEAR THOSE CAR COMMERCIALS AND YOU GET TO THE END AND IT SAYS, WELL QUALIFIED BUYERS, THAT IS AN INDICATION THAT WE ARE WELL QUALIFIED BUYER WITH OUR A+ RATING. I COULDN'T SAY THAT. WELL, IF WE WENT BELOW 90 DAYS, WOULD WE IMMEDIATELY GO DOWN? THAT'S COMPLICATED, BUT THAT IS A RISK THAT WE WOULD RUN, THAT WE COULD GO DOWN OUR BOND RATING AGENCY. AND AGAIN, THE DIRECT IMPACT OF THAT IS A HIGHER INTEREST RATE ON WHAT WE PAY ON THE DEBT SIDE, NOT THE GENERAL FUND SIDE. GOT IT. NO, I UNDERSTAND, AND I APPRECIATE IT. ONE LAST COMMENT THAT I HAVE IS FROM THE 6.1 THAT, YOU KNOW, THAT'S BEING PROPOSED. IF WE YOU KNOW, IF WE GO THE FULL AMOUNT, 5.2 MILLION OF THAT FROM THE 1.7 BUS DRIVERS AND 3.5 EDUCATIONAL AND PROFESSIONAL ROLES, THAT'S SOMETHING THAT WOULD BE AN ONGOING PIECE THAT'S GOING TO BE AN EXPENSE FOR US, THAT WE WOULD NEED TO MAKE SURE WE HAVE MONEY IN THE BUDGET MOVING FORWARD, BECAUSE WE'RE NOT GOING TO HAVE THE LAND SALES ON AN ONGOING BASIS. RIGHT? CORRECT. AND AGAIN, THE LAND

[01:00:02]

YOU WOULD. THAT DEPENDS ON HOW MUCH TIME YOU CAN FUND THAT. AND THAT WAS PART OF THE REASON I SAID YOU HAVE ROUGHLY 2 TO 3 YEARS THAT YOU COULD FUND THAT ON A PERMANENT, I SAID, A PERMANENT ON A SEMI-PERMANENT BASIS FROM THOSE FUNDS. OKAY. AND THE SELECTED STIPENDS, THE 1.9 MILLION, IS THAT A ONE ONE TIME OR JUST IT'S AN ONGOING THING AS WELL. STIPENDS ARE RECURRING AND ONGOING. OKAY. THANK YOU, THANK YOU, MISS TERRANOVA, MISS HANNON. SO THANK YOU, MISS BROWN AND MR. GLENN FOR THE INFORMATION. AND SO AND I APPRECIATE THE QUESTIONS MY FELLOW TRUSTEES HAVE MADE. SO I'M GOING TO ACTUALLY START BY THANKING OUR PARENTS AND OUR STUDENTS FOR SHOWING UP, BECAUSE WHILE WE COULD BE BETTER THAN 95% ON OUR ATTENDANCE RATE, WHEN WE LOOK AT SOME OF OUR SURROUNDING DISTRICTS IN REGION FOUR, THEY'RE THEY'RE THEY'RE JUST NOT CLOSE TO THAT. SO I REALLY APPRECIATE THE CONSCIENTIOUSNESS OF MISS HANNAH. CAN I ADD THAT IS A GREAT POINT. YEAH, 1% IF WE WERE TO GO FROM 95 TO 96% IS WORTH ROUGHLY $6 MILLION. PRIOR TO COVID, WE WERE CONSISTENTLY AT 97%. YEAH, I SAID WE COULD BE BETTER. THAT'S $12 MILLION. THAT AND JUST QUITE HONESTLY, POST COVID, IF ANYONE SNEEZES OR SNIFFLES, THE REACTION IS KEEP THEM HOME. AND HISTORICALLY THAT WASN'T THE CASE. BUT I DID WHAT YOU YOU MENTIONED THAT, YES. THANK YOU PARENTS, FOR SENDING YOUR CHILDREN. BUT IF YOU COULD SEND THEM MORE FREQUENTLY, IT IS WORTH MORE MONEY. WELL, IF YOU WILL GET ME SOME POM POMS AND THE REST OF THESE BOARD MEMBERS, I WILL DO SOME CHOREOGRAPHY AND WE WILL MAKE AN ATTENDANCE CHEER THAT WE WILL DO EVERY SINGLE MEETING. I WILL BE IN CHARGE OF THAT. AND SO I. BUT I DO THINK, YOU KNOW, BECAUSE ANYWAY, I STILL I THANK THEM FOR SHOWING UP BECAUSE IF IT WENT THE OTHER WAY, WE WOULD BE IN A WORSE PREDICAMENT. SO I ALSO WANT TO THANK I, I LOVED WHEN MISS BROWN SAID IT PAYS TO STAY IN FORT BEND. AND WHEN WE SAW THE SLIDE ON THE DIFFERENTIATED PAY SCALE. AND WHILE THAT DOESN'T HELP WITH OUR FIRST NEW NEWBIE TEACHERS COMING IN, I JUST THINK THAT'S SO IMPORTANT. AND I STILL I WANT TO THANK OUR VOTERS FOR KNOWING THAT WAS A BIG DEAL FOR TEACHERS WITH THE VATR, BECAUSE I KNOW THAT TOOK A LOT OF. I THINK IT WAS IT $0.04. WHAT WE FINALLY LANDED ON WITH THE VATRE. THAT IS CORRECT. IT TOOK A BIG PIECE OF THAT. RIGHT. AND SO I I'M. SO THAT'S STILL PAYING OFF. AND SO THE VOTERS THAT THAT TRUSTED US AND THOUGHT OUR TEACHERS WERE IMPORTANT IN THAT WAY. UNFORTUNATELY IT DIDN'T IT DIDN'T GO TO EVERYONE ON, ON THEIR STEP. BUT THAT'S A BIG DEAL. SO I JUST WANTED TO ACKNOWLEDGE THOSE THINGS. WHAT I WOULD LIKE TO SEE, AND I APPRECIATE OUR SMALL GROUP BUDGET MEETINGS. THERE ARE SOME THINGS THAT I WOULD LIKE. I KNOW THAT'S HARD. THIS IS A BIG ASK BECAUSE ASSUMING THAT THE LEGISLATURE WERE NOT IN A LEGISLATIVE YEAR THIS YEAR, WE WILL BE NEXT YEAR. BUT ASSUMING IT'S STATUS QUO. SO I JUST I WORRY ABOUT SORT OF LIKE THE ESSER EFFECT. I'M GOING TO CALL IT WITH LAND USE MONEY. BECAUSE, YOU KNOW, WE USED THAT MONEY IN OTHER WAYS OTHER THAN JUST TRACKING THAT IT BECAME DIFFICULT TO GET OUT OF THAT DEFICIT. SO IF THERE IS ANY WAY THAT WE COULD SEE A FORECAST BEYOND THIS YEAR, THINKING ABOUT THOSE, I THINK YOU'RE MAYBE THINKING ABOUT USING THOSE LAND SALES OVER A THREE YEAR TIME SPAN. IS THAT DID I HEAR THAT RIGHT? I WOULD JUST EVEN IF YOU JUST DID IT ONE YEAR BEYOND IF THE LEGISLATURE STATUS QUO AND WE HOPE THAT IT WON'T BE. SO THAT WOULD BE KIND OF INTERESTING TO ME. THE OTHER THING IS JUST TO MAKE SURE I BELIEVE. SCENARIO TWO, CORRECT ME IF I'M WRONG, DOES IT NOT INCLUDE THE ADJUSTMENT FOR THE OTHER PROFESSIONALS, SUCH AS COUNSELORS, NURSES OR. IT DOES. IT DOES NOT. YOU ARE CORRECT. IT DOES NOT. OKAY, SO THEN I WON'T I WON'T NECESSARILY ASK THAT QUESTION. BUT IF IT DID, AND WE END IN A EVEN MIRACULOUSLY BETTER FINANCIAL SITUATION THIS YEAR WHERE WE CAN DO THAT, I JUST WANT TO MAKE SURE WHO THOSE PROFESSIONAL POSITIONS ARE, WHO, WHO WE'RE TALKING ABOUT IN ADDITION TO THE BUS DRIVERS AND MONITORS, IF WE LAND THERE. I'M. IS IT EVERYBODY THAT WAS IN THE COST SAVINGS AUDIT? NO, MA'AM. IT IT WON'T BE EVERYONE. IT IS SPECIFIC TARGETED POSITIONS IN

[01:05:01]

BUT CERTAINLY IF IF WE DO HAPPEN TO GET THERE IN JUNE BY THE VOTE, I WOULD JUST WANT TO MAKE SURE I KNOW EVERYBODY THAT THAT INCLUDES. THE OTHER. SO HELP ME WITH THE 1.7 FOR BUS DRIVERS. WE COULD STILL GET TO THE 90 DAY. BUT THAT'S NOT IN SCENARIO TWO. OR IS IT IN SCENARIO TWO? IT IS CURRENTLY NOT IN SCENARIO TWO. AND SO AS WE'VE BEEN WORKING, WE MASSAGE AND WORK WITH THIS. EACH DAY WE HAVE COME UP WITH A SCENARIO POTENTIAL SCENARIO THREE. SO ONE OF THE THINGS THAT WE'RE LOOKING AT IS THE STAFF THAT WE ARE PLACING CURRENTLY WE'RE PLACING STAFF. AND SO AS WE PLACE THOSE STAFF MEMBERS AND ADDITIONAL FUNDING BECOMES AVAILABLE BECAUSE WE'RE NOT HAVING TO OVER ALLOCATE STAFF, THAT GIVES US SOME CUSHION, SOME ROOM. AND SO WHEN WE LOOK AT THAT ROOM, AS OF TODAY, WE CURRENTLY HAVE SPACE TO BRING IN THE BUS DRIVER PIECE. AND THE BUS DRIVER COMPONENT IS 1.7 MILLION. YOU HEARD MR. GLENN TALK ABOUT BEFORE. AT THE END OF THIS FISCAL YEAR, WE'LL HAVE ABOUT $7.6 MILLION IN LAND SALE FUNDS. THE AMOUNT IN ORDER TO GET TO THE 90 DAYS IS 5.5 MILLION. SO WE HAVE THE DIFFERENCE BETWEEN THAT 7.6 AND 5.5 TO DO SOME OF THE RECOMMENDED RECOMMENDED ADJUSTMENTS RELATED TO COMPENSATION. AND SO THE PIECE THAT WE CAN AFFORD AS OF TODAY WOULD BE THE BUS DRIVER, THE BUS DRIVER PIECE. OKAY. AND THEN, I MEAN, YOU JUST MENTIONED IT, BUT I KNOW, I KNOW WE DISCUSSED THIS IN THE ONE ON ONE THAT I WAS IN. BUT CAN YOU TALK? I THINK THERE ARE 100. I CAN'T FIND THE SLIDE. YOU SAID THERE ARE 116 POSITIONS THAT ARE GOING TO SORT OF. SORT OF BE CONSOLIDATED WITH OTHER POSITIONS. OH THANK YOU. SLIDE 14. SO OF THE 116 FTE. IF I'M SAYING THIS WRONG OR HAVE 30 ALREADY BEEN. SORT OF NOT DISSOLVED, I, I HATE TO USE THE WRONG WORD, BUT THE POSITIONS.

IS THAT CORRECT? 30 HAVE BEEN IDENTIFIED IDENTIFIED. SO IT'S THE FLIP OF THAT 116 POSITIONS ARE VACANT AND HAVE BEEN CLOSED, OR ROUGHLY 30 POSITIONS REMAINING THAT HAVE NOT YET BEEN PLACED. SO WE'RE CARRYING THAT COST INTO NEXT YEAR, ASSUMING THAT THEY WILL REMAIN IN THEIR POSITION FOR THE DURATION OF THE YEAR FOR NEXT YEAR. THAT'S CORRECT. OKAY, SO WE HAVE 30 PENDING OR NOT PENDING, BUT STAYING FOR NEXT YEAR. BUT THEN THOSE 30 POSITIONS WILL ALSO SORT OF BE ABSORBED INTO OTHER POSITIONS. OKAY. I JUST FOR SOME REASON THAT ONES, I'M HAVING A HARD TIME WRAPPING MY HEAD AROUND. AND THEN I ACTUALLY WANT TO ASK, I'M VERY GLAD FOR YOUR POSITIVE OUTLOOK, DOCTOR SMITH, BUT I WOULD LIKE TO UNDERSTAND MAYBE NOT TONIGHT, BUT HOW EVEN WITH SOME OF OUR NEW THINGS THAT WE'RE DOING, HOW WE HOW WE EXPECT TO INCREASE OUR ENROLLMENT WITH THE NUMBER OF STUDENTS THAT WERE IDENTIFIED THAT GOT THE THE EDUCATIONAL SAVINGS ACCOUNT FOR PRIVATE OR HOME SCHOOL, BECAUSE THE NUMBER WAS QUITE LARGE. AND SO, SO IT WAS AROUND 1500. RIGHT. CAN YOU SPEAK TO THAT? I CAN SPEAK BRIEFLY TO THAT. SO THE PASA PROJECTION THAT YOU ALL SAW AT THE LAST MEETING MAKES THE ASSUMPTION THAT WE WILL LOSE STUDENTS TO THE ESAS. AND SO THAT NUMBER THAT WE ARE SEEING THAT IS BEING PUT OUT PUBLICLY, PASA HAS INCORPORATED THAT INTO THEIR NUMBERS. AND WHEN I SAY THAT THEY'VE USED A MODEL. AND SO IT'S NOT NECESSARILY DIRECTLY RELATED TO WHAT THE STATE IS PUTTING OUT, BUT THEY HAVE PROJECTED THAT WE WILL LOSE STUDENTS TO THE ESAS. AND SO THE 76,000, I THINK IT'S EIGHT, 98, 76,000 854, INCLUDES THE ASSUMPTION THAT WE HAVE ENROLLMENT LOSS TO THE ESAS. OKAY. AND SO TO AND I SAY DOCTOR AND THEN TO HIS ANY OF THESE NEW STUDENTS THAT WE WOULD POTENTIALLY BRING IN FROM PROGRAMS OF CHOICE FROM OUTSIDE THE DISTRICT OR CURRENT DISTRICT. STUDENTS THAT ARE NOT ENROLLED WOULD BE ADDITIONAL REVENUE TO THE DISTRICT. OKAY. OKAY. ALL RIGHT. WELL, THANK YOU FOR THE INFORMATION. AND, YOU KNOW, AGAIN, ANYTHING THAT WE CAN DO. TO TO CLOSE THE GAPS IN SOME OF THE, THE FUNDING FOR OUR POSITIONS THAT WE HAVE NOT ELEVATED THE PAY SCALE FOR THEM. I DO THINK THAT'S IMPORTANT.

BUT I ALSO, I'M, I'M AN ABSOLUTE NO GO TO GO BELOW 90 DAYS. I JUST THINK, I THINK OUR

[01:10:08]

OKAY, SO I'M GOING TO PICK UP WITH WHERE YOU GUYS JUST LEFT OFF. WHEN ARE WE EXPECTED TO HEAR FROM THE STATE ABOUT HOW FORT BEND ISD IS IMPACTED BY VOUCHERS? SO THE FINAL DECISIONS HAVE BEEN MADE. BUT I'M JUST GOING TO SAY THIS BLUNTLY, THEY ARE NOT MAKING IT EASY FOR US TO GET INFORMATION ABOUT HOW THIS IS IMPACTING US. AND SO THE FIRST ROUND OF INFORMATION THAT WE SAW WAS JUST A BLANKET. HERE'S HOW MANY BODIES THAT RESIDE IN FORT BEND ISD THAT HAVE APPLIED FOR. THERE WAS A PUBLIC INFORMATION REQUEST DONE BY AN ADVOCACY GROUP THAT WAS ABLE TO GET IT NARROWED DOWN TO THESE ARE THE STUDENTS THAT WERE IN ARE IN ATTENDANCE, BUT UNFORTUNATELY, THE STATE IS NOT RELEASING REGULAR INFORMATION IN TERMS OF.

YOU HAVE 500 STUDENTS, 300, 300 OF WHICH ARE REGULAR STUDENTS, 200 ARE SPECIAL ED THAT WILL BE RECEIVING THOSE VOUCHERS. THEY HAVE NOT PROVIDED THAT. DO WE KNOW WHEN THEY'RE GOING TO AWARD THE VOUCHER? LIKE, WHEN ARE WE GOING TO KNOW? WHEN IS A STUDENT GOING TO KNOW FOR SURE THAT THEY. I KNOW THAT THEY COULD NOT LEAVE. THEY COULD MAKE THAT DECISION, BUT THEY HAVE ANNOUNCED THE INITIAL AWARDS TO PARENTS ALREADY. AND SO THEY HAVE. YES. AND SO THE PARENTS, THEY'RE JUST NOT TELLING US THAT IS CORRECT. OKAY. AND I ALSO UNDERSTAND THAT TEA IS BUILDING THE SPECIAL ED FUNDING BICYCLE RIGHT NOW. AND WE ARE NOT GOING TO HAVE ANSWERS ON HOW WE'RE GOING TO BE FUNDING FUNDED WITH SPECIAL EDUCATION BEFORE WE VOTE ON THIS BUDGET. THAT IS ALSO CORRECT. SO THEY INCLUDED NEW WEIGHTED FUNDING ALLOTMENTS BASED ON THE INTENSITY OF SERVICES THAT THOSE STUDENTS WILL RECEIVE. THEY HAVE NOT RELEASED HOW EACH DISTRICT WILL RECEIVE THOSE FUNDS. AND SO WHAT DISTRICTS ARE HAVING TO DO IS TO AND WHEN I SAY THIS, THIS IS NO EXAGGERATION. WE ARE HAVING TO GO STUDENT BY STUDENT TO THEIR WEBSITE, PUT IN THE SERVICES THAT THEY RECEIVE, AND THEN IT GENERATES WHAT THAT STUDENT WILL, WILL RECEIVE IN SERVICES. AND SO WHEN YOU LOOK AT US, ROUGHLY 16% OF OUR STUDENTS ARE SPECIAL. ED, WE WOULD HAVE TO DO THAT FOR EVERY SINGLE STUDENT TO GET WHAT OUR NUMBER WOULD BE. AND QUITE FRANKLY, THAT'S NOT REALISTIC. AND SO WHAT THEY HAVE SHARED WITH US, TEA, IS THAT WE WILL KNOW IN SEPTEMBER OF 2027 WHAT OUR ACTUAL FUNDING WILL BE. AND I'LL JUST SAY IT COULD GO UP OR IT COULD GO DOWN BASED ON THE INTENSITY OF SERVICES THAT WE ARE PROVIDING LOCALLY TO STUDENTS. RIGHT? SO I WANTED TO MAKE SURE THAT EVERYONE UNDERSTANDS THAT. AND HERE'S THE CHALLENGES CHALLENGE THAT WE'RE GOING TO BE FACING OVER THE NEXT YEAR, AND EVEN TRYING TO DETERMINE WHERE OUR FUNDING IS GOING TO BE ON SPECIAL EDUCATION. SO IT'S WE ARE. I'M GOING TO TRY REALLY HARD TO KEEP MY FRUSTRATION LEVEL DOWN AROUND BECAUSE, BECAUSE IT SEEMS LIKE WE ARE CONSTANTLY FIGHTING THIS BATTLE OF TRYING TO ENSURE THAT STUDENTS AND SPECIAL EDUCATION ARE APPROPRIATELY EDUCATED UNDER THE LAW. AND THE FUNDING NEVER SEEMS TO MATCH WHAT IT ACTUALLY TAKES FOR KIDS TO BE EDUCATED.

AND WE'VE BEEN BATTLING THIS FOR YEARS. SO I'M BRINGING UP THAT POINT BECAUSE, YOU KNOW, THIS BODY IS FACED WITH NOW VOTING ON A BUDGET WHERE WE DON'T EVEN KNOW THAT WE'RE GOING TO KNOW BY THE TIME WE VOTE ON IT, HOW MANY STUDENTS ARE TAKING VOUCHERS. AND WE DON'T KNOW WHAT OUR SPECIAL EDUCATION FUNDING IS GOING TO BE. SO THOSE ARE TWO VERY BIG OBSTACLES THAT WE ARE GOING TO FACE. AND SO I'M GOING TO TRANSITION NOW INTO WHY BUDGET AMENDMENTS ARE GOING TO BE PROBABLY PRETTY IMPORTANT FOR US THIS YEAR WHILE WE'RE WORKING ON LAND SALES. AND WE DO HAVE A LOT OF REALLY GOOD PROSPECTS, THAT IS ONE TIME MONEY, BUT HOPEFULLY IT CAN COME IN AS SORT OF A HOLDOVER UNTIL WE CAN GET A REALLY GOOD PICTURE OF THE LANDSCAPE GOING FORWARD. BUT I KNOW WE HAVE SOME TRUSTEES WHO HAVE NOT DONE BUDGET AMENDMENTS IN THE PAST, AND IT'S A REALLY GOOD TOOL TO HELP US SORT OF SET THE BUDGET IN JUNE AND THEN COME BACK AND SAY, OKAY, SO IT'S LOOKING MORE POSITIVE ON ENROLLMENT. SO WE

[01:15:07]

ARE FUNDED OR THAT THEY'RE GIVEN THEIR THEIR RAISES OR THEIR COMPENSATION ADJUSTMENTS.

AND SO I APPRECIATE YOU GUYS BRINGING THAT TO US. I HAD THE SAME QUESTION THAT MISS HANNON DID ABOUT WHAT POSITIONS ARE IN IN THAT. AND I WAS GLAD TO HEAR THAT DIAGNOSTICIANS ARE PART OF THAT. IT SOUNDS LIKE COUNSELORS, NURSES. WHAT ABOUT OUR PARAPROFESSIONALS? THAT'S ANOTHER LAYER OF THE PROCESS. WE DO HAVE SOME PARAPROFESSIONAL POSITIONS THAT WILL BE LOOKED AT. THIS FIRST PIECE THAT WE'VE WE'VE PUT OUT DOES NOT ADDRESS THAT QUITE YET, BUT THAT IS A PART B PIECE DEPENDING ON WHAT THE OUTLOOK LOOKS LIKE FOR US. OKAY. YES.

SO I'M GOING TO MAKE MY PITCH AS USUAL, AS USUAL, FOR THE PARAPROFESSIONALS THAT ARE IN THE CLASSROOM EVERY DAY, ONE ON ONE WITH 16% OF OUR KIDS, PROBABLY MOSTLY, MOSTLY THOSE KIDS, AS WE KNOW. AND NOT ONLY IS IT ARE THEY WHERE THE RUBBER MEETS THE ROAD FOR THE STUDENT, BUT THE TEACHERS COULD NOT FUNCTION WITHOUT THEM. I MEAN, I THINK THEY WOULD TELL YOU THAT THAT THEY THEY COULD NOT DO IT WITHOUT THEM. SO I KNOW YOU GUYS WANT TO I'M NOT SAYING THAT YOU DON'T WANT TO, BUT I WOULD LIKE TO SEE WHAT THE NUMBER WOULD BE FROM THE 6.1 IF WE INCLUDED OUR PRAYER PROFESSIONALS. IF I COULD IF I COULD GET THAT INFORMATION, THAT WOULD BE HELPFUL. YES, MA'AM. ON SLIDE 18, LOOKING AT SCENARIO ONE, WE'RE AT 87 DAYS.

MR. GWEN, HOW MUCH MONEY GETS US FROM 87 TO 90? WHAT'S A DAY COST? IT'S ROUGHLY 2.5 TO 2.7 MILLION IS WHAT GETS YOU A DAY. SO WE'RE CLOSE BETWEEN 6 AND 9 MILLION, MAYBE 7.5 MILLION.

CORRECT. SO WE WOULD NEED TO COME UP WITH $7.5 MILLION TO GET US UP TO THE 90 DAYS IF WE IMPLEMENTED SCENARIO ONE. CORRECT. OKAY. THANK YOU FOR THAT INFORMATION. I ALSO JUST WANTED TO MAKE A COUPLE OF COMMENTS. I GUESS I WANTED TO HIGHLIGHT A COUPLE OF THINGS, MOSTLY FOR THE BENEFIT OF THE COMMUNITY MEMBERS LISTENING. FIRST OF ALL, TEACHERS, THE THE TEXAS LEGISLATURE DID GIVE THE TEACHER PAY RAISES LAST SESSION, WHICH WE APPRECIATE THAT. BUT I JUST WANT TO SAY AGAIN, AND I KNOW YOU GUYS HAVE SAID IT, BUT I WANT TO SAY AGAIN THAT IT DID NOT INCLUDE ALL OF OUR STAFF, WHICH IS WHY YOU'RE LOOKING AT THESE OTHER POSITIONS, LIKE THE BUS DRIVERS AND THE COUNSELORS AND THE NURSES AND THE PARAPROFESSIONALS, ALL WHO ARE NECESSARY TO OUR DAILY OPERATIONS. WE CAN'T HAVE SCHOOLS WITHOUT NURSES, AND WE CAN'T HAVE SCHOOLS WITHOUT COUNSELORS, AND WE CAN'T GET KIDS TO SCHOOL WITHOUT BUS DRIVERS. AND SPECIAL ED DOESN'T FUNCTION WITHOUT PARAPROFESSIONALS. AND MADAM PRESIDENT, IF I MAY, I WOULD ALSO ADD, THOUGH IT WAS VERY SPECIFIC, TEACHERS, CLASSROOM TEACHERS AS DEFINED BY THE TEXAS EDUCATION. NOT EVEN ALL OF OUR. THAT'S RIGHT. NOT EVEN SO THAT. THAT'S A VERY GOOD POINT. THANK YOU FOR MAKING IT. SO I JUST WANTED TO REMIND EVERYONE THAT NOT NOT EVERYONE IN THE CLASSROOM WAS INCLUDED IN THOSE PAY RAISES AND, AND, AND AS THE GOVERNING BODY IN THIS DISTRICT, WE HAVE TO CARE ABOUT ALL OF THE PEOPLE IN OUR

[01:20:03]

THAT'S BECAUSE IT'S GOING TO STAY THE SAME. THAT'S WOULD BE ROUGHLY THE SAME BECAUSE WE'RE NOT HITTING A GROWTH THRESHOLD WITHIN FORT BEND ISD THAT WOULD TRIGGER THAT ADDITIONAL COMPRESSION. OKAY. SO WE THINK WE'RE GOING TO STAY AT THE SAME RATE, WHICH WILL GO BACK DOWN WITH THE SEVEN PENNIES GONE AND THE DEBT SERVICE, WHICH IS THE INS RATE INTEREST AND SINKING IS SEPARATE THAN THE M AND O RATE. RIGHT. AND NEVER SHALL THE TWO NEVER SHALL THE TWO CROSS. I KNOW I, I PAID ATTENTION, NEVER SHALL THE TWO CROSS. AND SO OUR INS RATE, EVEN THOUGH WE. THE BOND WAS PASSED BY THE COMMUNITY IN 2023, THAT RATE HAS NOT GONE UP.

THAT'S CORRECT. BUT WE ARE NOW GOING TO TAKE THE ONE PENNY WHICH HAS ALREADY BEEN APPROVED.

THAT IS CORRECT. AND AGAIN, IT'S SPECIFIC TO WE HAVE TAKEN A JUST IN TIME APPROACH TO TAKING THAT PENNY. AND SO AT THE FRONT END OF THE BOND, WE DID NOT ISSUE ALL THE DEBT. WE PAY THAT OUT OVER TIME TO MATCH THE PACE OF CONSTRUCTION. AND SO WE HAVE HIT THE POINT OF CONSTRUCTION SATURATION, IF YOU WILL. AGAIN, I LISTED OUT WE'VE COMPLETED TWO ELEMENTARY CAMPUSES, ONE MIDDLE SCHOOL, AND WE'RE ABOUT HALFWAY THROUGH OR MORE WITH CLEMENTS HIGH SCHOOL. AND SO WE NOW HAVE ISSUED DEBT THAT REQUIRES THAT ADDITIONAL PENNY, RIGHT? SO WE'VE WAITED UNTIL WE NEEDED TO DO IT INSTEAD OF TAKING IT AT THE OUTSET, WHICH TECHNICALLY COULD HAVE HAPPENED. THAT IS CORRECT. WE DID NOT DO IT. AND I'LL JUST SAY I'M GOING TO MAKE A PLUG FOR US. YEARS AGO, WE DROPPED THAT INTEREST RATE, TWO PENNIES IN 2019, THAT WAS 17 OR 18. YEAH, I WAS GOING I WAS GOING TO SAY 17, BUT MAYBE IT WAS 18. AND SO WE'RE STILL NOT BACK AT THE AT WHERE WE WERE SEVEN, EIGHT YEARS AGO. THAT'S CORRECT. OKAY. OKAY. I JUST WANTED TO MAKE ALL OF THAT VERY CLEAR, BECAUSE A LOT OF THAT CAN GET LOST IN THE SHUFFLE.

AND SO I ASSUME AT THE BUDGET HEARING THAT YOU GUYS WILL BRING OUT THE SLIDE THAT SHOWS OUR TAX RATE AND WHERE WE ARE COMPARED TO THE SURROUNDING DISTRICTS, BECAUSE I THINK WE NEED TO BE SURE THAT WE'RE REMINDING OURSELVES AND THE COMMUNITY WHERE WE ARE COMPARED TO SURROUNDING DISTRICTS AND WHAT OUR JOURNEY HAS BEEN. YES, MA'AM. AND ACTUALLY AT THE WORKSHOP NEXT WEEK, WE HAVE THE WHAT THE INITIAL TAX RATE IS EXPECTED TO BE, AS WELL AS THAT TAX RATE COMPARISON YOU JUST MENTIONED. AND SO YOU'LL SEE THAT PRIOR TO YOUR BUDGET ADOPTION IN JUNE. OKAY. ALL RIGHT. THAT'S REALLY ALL I HAD. SO THANK YOU GUYS. DID YOU OH MISS HANNA, GO AHEAD. SO JUST PIGGYBACKING ON MISS TORSEN WHEN YOU BRING THE TAX RATE INFORMATION OF US AND SURROUNDING DISTRICTS, CAN YOU JUST MAYBE ALSO SHOW US WHAT THEIR CORRESPONDING STARTING TEACHER PAY IS? AND IF YOU HAVE THE DATA, YOU KNOW, WHEN THEY HAVE GIVEN RAISES BECAUSE IS THERE A IS THERE A, YOU KNOW, IS THERE A CORRELATION WITH OUR LOW TAX RATE VERSUS SOME OF OUR SURROUNDING DISTRICTS THAT HAVE A MUCH HIGHER RATE? I THINK OF ONE RIGHT HERE DOWN THE ROAD THAT THAT THAT'S ENABLING THEM TO KEEP UP WITH THE MARKET. SO HERE'S WHAT I WOULD SAY TO THAT QUESTION. IT'S NOT SO MUCH THE TAX RATE THAT DICTATES THAT

[01:25:06]

PROVIDING RAISES WHERE WE HAVE NOT. AND SO DON'T ANSWER THIS NOW, BUT MAYBE THAT'S ANOTHER QUESTION I HAVE IS, YOU KNOW, ARE WE CAPITALIZING ON ON EVERY TITLE, ONE OPPORTUNITY THAT WE HAVE IN THIS DISTRICT TO HELP WITH FUNDING? SO AGAIN, DON'T ANSWER THAT NOW, BUT I AM CURIOUS ABOUT THAT. THANK YOU, MISS HANNON. AND AND ONE LAST THING THAT THAT POINT THAT I WANTED TO MAKE. SO AND ALL THE YEARS I'VE SERVED, I'VE NEVER HEARD YOU OR ANYONE MONETIZE A PERCENTAGE POINT OF ATTENDANCE. SO THAT'S, THAT'S BIG. THAT'S, THAT'S REALLY KEY TO ME. SO I'M, I KNOW THAT YOU GUYS ARE CONSTANTLY WORKING ON HOW TO INCREASE STUDENT ATTENDANCE.

AND I THINK PARTICULARLY IN THIS ENVIRONMENT, IT'S GOING TO BE IMPORTANT THAT WE THINK OUTSIDE THE BOX. BUT INTERESTINGLY, I WAS JUST HAVING A CONVERSATION WITH ANOTHER SOMEONE WHO HAS WORKED IN EDUCATION, AND WE WERE DISCUSSING HOW THESE CHOICE PROGRAMS CAN HELP POTENTIALLY INCREASE ATTENDANCE BECAUSE STUDENTS ARE EXCITED ABOUT COMING IN FOR THESE PROGRAMS AND BEING AT SCHOOL EVERY DAY BECAUSE THEY'RE ABLE TO CHOOSE THESE PARTICULAR PROGRAMS. AND SO THAT GIVES ME A LOT OF EXCITEMENT TO SEE IF AND HOW THAT MIGHT IMPACT OUR ATTENDANCE, AT LEAST AT THOSE SCHOOLS IN THE IN THE MIDDLE SCHOOL. AND THEN IN THE FUTURE, MAYBE WHAT, YOU KNOW, WHAT WE CAN DO IN OUR CLASSROOMS AND OUR SCHOOLS TO ALLOW KIDS TO CHOOSE SOME OF THOSE PROGRAMS THAT MIGHT ENCOURAGE THEM TO, TO ATTEND. BUT THAT'S A BIG NUMBER. I MEAN, THAT I, I HAD NEVER HEARD THAT BEFORE. SO THANK YOU FOR SHARING THAT. OKAY. THANK YOU BOTH. NEXT UP IS OUR BOND 2023 OVERVIEW,

[4.B. Bond 2023 Overview]

AS MR. BANKHEAD MAKES HIS WAY UP, WE ARE EXCITED THIS EVENING THAT WE WILL HAVE AN OPPORTUNITY TO SHARE A CONSTRUCTION UPDATE WITH YOU, ACTUALLY, TONIGHT ON COLEMAN MIDDLE SCHOOL. MR. BANKHEAD HAS WORKED VERY DILIGENTLY ON THIS PRESENTATION, IS EXCITED TO TO SHARE SOMETHING NEW WITH YOU, ALSO FOLLOWED BY MR. BANKHEAD. MR. GWEN, I'M SORRY. MR. GWEN WILL BE COMING UP AND TALKING ABOUT WHERE WE ARE. COME ON OVER. COME WHERE WE ARE FINANCIALLY. WE HAVE SOME GREAT NEWS TO SHARE ABOUT THAT AS WELL. AND SO AT THIS TIME, I'LL TURN IT OVER TO MR. BENKERT. GOOD EVENING. GOOD EVENING, PRESIDENT HASSAN, BOARD MEMBERS AND DOCTOR SMITH. TONIGHT I'LL BE SHARING A CONSTRUCTION PROGRESS UPDATE ON ONE OF THE MAJOR PROJECTS FUNDED THROUGH THE 2023 BOND PROGRAM, THE NEW AMY COLEMAN MIDDLE SCHOOL. THIS CAMPUS REPRESENTS A SIGNIFICANT INVESTMENT IN STUDENT LEARNING ENVIRONMENTS, AND I'M PLEASED TO WALK YOU THROUGH THE PROGRESS WE'RE SEEING BOTH INSIDE AND OUTSIDE THE BUILDING AS WE MOVE TOWARD OPENING THIS SUMMER. THIS IS THE MAIN ENTRANCE TO AMY COLEMAN MIDDLE SCHOOL SQUARE. FOOT WISE, THIS WILL BE THE LARGEST MIDDLE SCHOOL IN THE DISTRICT. THE DESIGN INTENT WAS TO CREATE A CAMPUS THAT FEELS WELCOMING, SAFE, AND CLEARLY IDENTIFIABLE AS A COMMUNITY ASSET. YOU'LL NOTICE THE METAL WALL PANELS WITH THE WARM WOOD APPEARANCE PAIRED WITH BRICK AND STONE VENEER AT THE CENTER THAT HELPED CREATE THE SCHOOL'S IDENTITY. I HAVE TO SAY THAT I WAS IMPRESSED WITH HOW NATURAL THE METAL PANELS LOOK. ONCE COMPLETED AND CLEANED, WE'LL SHOW A LITTLE BIT MORE OF THAT LATER. THE DEPTH OF THE ENTRANCE CANOPY WILL PROVIDE AMPLE COVERAGE SPACE, SHADE, AND CLEAR PEDESTRIAN

[01:30:02]

THESE COURTYARDS ARE STRATEGICALLY PLACED TO BRING NATURAL LIGHT INTO THE BUILDING AND CREATE VISUAL OPENNESS. NOTICE THERE IS A SEVEN FOOT FENCE, HIGH ORNAMENTAL FENCE ACTUALLY ENCLOSING THE COURTYARD FOR SECURITY. CONTINUING WITH THE EXTERIOR ELEMENTS, THE IMAGE ON THE LEFT SHOWS THE CAMPUS MARQUEE SIGN, WHICH MATCHES THE BRICK COLOR PALETTE USED THROUGHOUT THE SITE FOR A COHESIVE APPEARANCE. AS YOU CAN SEE, WE'RE ALREADY EXTENDING A WELCOME TO OUR NEW STUDENTS AND FAMILIES. IN THE CENTER IS THE COMPETITION FIELD.

THE BERMUDA GRASS IS FULLY ESTABLISHED AND THE GRANDSTAND SEATING HAS ALREADY BEEN INSTALLED. ON THE RIGHT IS THE LIBRARY COURTYARD, AND THIS SPACE IS A 95% COMPLETE. NOW WITH SIDE FULLY ESTABLISHED, THE PERIMETER FENCING INSTALLED AND THE ALUMINUM WALKWAY CANOPIES IN PLACE. YOU SEE A LITTLE GLIMPSE OF THAT IN THIS IMAGE. THESE CANOPIES RING THE COURTYARD AND ALLOW STUDENTS ARRIVING BY SCHOOL BUS TO WALK TO THE GYMNASIUM OR THE DINING COMMONS, UNDERCOVER AND PROTECTED FROM THE ELEMENTS. THIS IMAGE SHOWS AN ORIGINAL RENDERING OF A KEY COLLABORATION SPACE IN ONE OF THE CLASSROOM WINGS. THESE SPACES WERE INTENTIONALLY DESIGNED TO SUPPORT FLEXIBLE LEARNING, STUDENT INTERACTION, AND COLLABORATION. OUTSIDE THE TRADITIONAL CLASSROOM, YOU SEE SOME OF THE STUDENTS SITTING AROUND IN WORKING TOGETHER IN THIS IMAGE. ON THE NEXT SLIDE, YOU'LL SEE HOW THE AREA IS COMING TOGETHER IN ACTUAL CONSTRUCTION. THESE ARE CONSTRUCTION PHOTOS FROM EARLY MARCH OF THAT SAME COLLABORATION SPACE. THE IMAGE ON THE LEFT WAS TAKEN FROM THE FIRST FLOOR. TODAY, THIS AREA IS APPROXIMATELY 95% COMPLETE. PERMANENT GUARDRAILS ARE NOW INSTALLED IN THE LUXURY VINYL TILE FLOORING HAS BEEN LAID. THE IMAGE ON THE RIGHT IS FROM THE SECOND FLOOR. THE ROUND LED LIGHT FIXTURES AND THE HIGH CEILINGS REINFORCE THE OPENNESS OF THE SPACE AND HELP CREATE A BRIGHT, WELCOMING ENVIRONMENT FOR OUR STUDENTS. THIS SLIDE HIGHLIGHTS SEVERAL INTERIOR AREAS ACROSS THE BUILDING. EACH OF THESE SPACES HAS SEEN SIGNIFICANT PROGRESS SINCE THESE PHOTOS WERE TAKEN. AT THE LEFT. TOP LEFT IS A COMPLETED CLASSROOM WITH ABUNDANT NATURAL LIGHT AND AN ACCENT WALL THAT ADDS VISUAL WARMTH. THE TOP CENTER IMAGE SHOWS A SECOND FLOOR COLLABORATION SPACE NEAR THE LIBRARY. HIGH CEILINGS, CLEAR STORY WINDOWS YOU SEE IN THE IMAGE AND CIRCULAR LIGHTING HELP CREATE AN OPEN AND FLEXIBLE SETTING FOR STUDENTS. AT THE TOP RIGHT IS THE COMPETITION GYMNASIUM, WHERE BASKETBALL GOALS AND SCOREBOARDS HAVE BEEN INSTALLED. THIS SPACE IS APPROXIMATELY 95% COMPLETE, AS IS THE PRACTICE GYM, AND IN FACT, THOSE SPACES. THE FLOORS HAVE ALREADY BEEN

[01:35:01]

THIS AREA OF THE LIBRARY ALSO SERVES AS A GATEWAY TO ONE OF THOSE OUTDOOR COURTYARDS THAT I MENTIONED EARLIER. I'LL CLOSE THIS PORTION OF THE UPDATE WITH A SHORT INTERIOR WALKTHROUGH VIDEO. THIS GIVES A REAL SENSE OF HOW THE BUILDING FEELS AS YOU MOVE THROUGH IT. THE SCALE OF THE SPACE, THE NATURAL LIGHT, AND HOW THE CLASSROOMS, COLLABORATION AREAS, AND COMMON SPACES CONNECT. GO AROUND THE OUTSIDE INITIALLY. THE STONEWORK I MENTIONED IN THOSE PANELS. NOTICE HOW IN THE CORRIDOR EACH OF THE DOORWAYS HAVE LIGHTS, SO THE NATURAL LIGHT FROM OUTSIDE COMES INTO THE CORRIDORS. THIS IS THAT COLLABORATION SPACE. HOW OPEN AND NICE IT FEELS LOOKING AT IT FROM THE SECOND FLOOR. CLASSROOMS WE NOW HAVE CABINET MILLWORK. STORAGE CABINETS ARE IN PLACE. HOW BRIGHT AND WELL LIT IT IS. TOILET PARTITIONS HAVE STARTED TO COME IN AND SO THOSE ARE GETTING INSTALLED. THE FLOORING IS UNDERNEATH THOSE PROTECTIVE COVERS. IT ALL IN PLACE. GYMNASIUM HANGING SPEAKERS. THERE'S OUR DINING COMMONS WITH THE LINEAR CEILING. IT'S A BEAUTIFUL CEILING. THEY'VE STARTED HANGING SOME OF THE CEILING TILE. AND THAT SAMMY COLEMAN MIDDLE SCHOOL. WITH THAT, I'D LIKE TO TURN IT OVER TO MR. GWYNNE TO BRING US SOME FINANCIAL UPDATE. GOOD EVENING AGAIN. SO FOR OUR 23 BOND EXPENDITURES TO DATE, THE BUDGET REMAINS AT $1.26 BILLION. WE HAVE $266 MILLION ENCUMBERED, AND THAT IS FOR CONTRACTS FOR WHICH THE BOARD HAS APPROVED THE USE OF FUNDING. BUT WE HAVE NOT YET WRITTEN THE CHECKS. WE'VE ACTUALLY EXPENDED $620.2 MILLION, AND THAT IS FOR CONTRACTS THE BOARD HAS APPROVED. AND WE HAVE ACTUALLY WRITTEN THE CHECKS TO THE VENDORS. THERE IS ABOUT $375 MILLION LEFT REMAINING ON THE 23 BOND TO BE EXPENDED FOR BOND CONTINGENCY. WE SHARED WITH YOU LAST MONTH. WE HAVE JUST UNDER $42 MILLION IN CONTINGENCY THIS MONTH. THERE'S NO PROPOSED USE OR ADDITIONS. AND SO WE'RE REMAINING AT $42 MILLION. AND THEN WHEN WE VISITED WITH YOU LAST MONTH, WE TOLD YOU WE EXPECT TO USE $6.6 MILLION IN CONTINGENCY ON PROJECTS THAT ARE STILL REMAINING TO BE BROUGHT TO THE BOARD. HOWEVER, WE HAVE MADE ADJUSTMENTS TO THAT, AND THAT NUMBER HAS GONE DOWN. IT'S GONE DOWN, DOWN BY APPROXIMATELY $3.4 MILLION. AND SO THAT INCLUDES A REDUCTION TO BID PACKAGE 36. THAT'S AT $2 MILLION FOR SITE WORK AND A REDUCTION OF $1.4 MILLION TO BID PACKAGE 37, WHICH IS ALSO FOR SITE WORK. AND SO, IN TOTAL, THE REVISED EXPECTED USE OF CONTINGENCY IS NOW AT $3.2 MILLION VERSUS THE $6.6 MILLION THAT WE SHARED WITH YOU LAST MONTH. SO IT HAS GONE DOWN. AND SO WHEN WE LOOK AT THAT, THESE ARE THE PROJECTS THAT WOULD UTILIZE THE $3.2 MILLION. YOU CAN SEE THE ONES CROSSED OFF WHERE WE'VE ALREADY BROUGHT TO THE BOARD FOR CONSIDERATION AND APPROVAL. AND SO WHAT THAT MEANS IS IF YOU TAKE THE $42 MILLION WE CURRENTLY HAVE AVAILABLE BACK OUT THE $3.2 MILLION FOR THE PROPOSITION, A LIFE CYCLE DEFICIENCY THAT WE EXPECT TO USE, WE WOULD HAVE $38.8 MILLION IN CONTINGENCY. AND IF LAST MONTH, WHEN WE SHARED THIS INFORMATION WITH YOU, WE WERE JUST UNDER 35 OR JUST UNDER $36 MILLION IN EXPECTED USE OF OUR EXPECTED CONTINGENCY REMAINING. SO OUR OVERALL POSITION HAS IMPROVED AS A RESULT OF THOSE PROJECTS BEING ADJUSTED. AND THAT CONCLUDES THE PRESENTATION. AND WE'LL BE HAPPY TO ANSWER ANY QUESTIONS THAT THE BOARD HAS. THANK YOU. MR. BANKHEAD. AND

[01:40:01]

YES, MA'AM. AND SO IN THE NEXT MONTH OR SO, WE'LL BE BRINGING THAT ALONG WITH SOME ADDITIONAL RECOMMENDATIONS. ONE OF THE THINGS THAT WE TALKED TO YOU ALL ABOUT BEFORE IS ONCE WE GET TO THIS POINT IN THE BOND BOND 2023, THAT IF THERE WERE ANY FUNDS REMAINING, THAT THERE WERE SOME THINGS YOU SPECIFICALLY ASKED US TO BRING BACK. AND SO WHEN WE BRING OUT THE FALLOUT FUNDS, WE'LL ALSO BE PREPARED TO BRING SOME OF THOSE ITEMS BACK TO YOU AS WELL

[01:45:05]

[5. Convene in closed session under Texas Open Meetings Act, Texas Government Code, Chapter 551 under the following sections: 551.071 - For the purpose of a private consultation with the Board's attorney on any or all subjects or matters authorized by law; Section 551.072 - Consider purchase, exchange, lease, or value of real property, Section 551.074 - Personnel matters, Section 551.076 - Security matters, Section 551.082 - Student discipline matter or complaint, or Section 551.0821 - Personally identifiable information about public school student]

[6. Reconvene in Open Session]

[8.A. Consideration and approval of the minutes of Fort Bend ISD Board of Trustees meetings and/or public hearings on the following dates: April 13, 2026 Called Meeting and Agenda Review April 20, 2026 Regular Board Meeting]

[8.B. 3rd Quarter 2025-26 Financials: Consideration and approval of the third quarter 2025-2026 Financial Report.]

[8.C. Resolution Supporting TASB Board Nomination: Consideration and approval of a resolution supporting Ms. Bridget Chustz, Director of Risk Management, to serve as a member of the TASB Risk Management Funds Board of Trustees.]

[8.D. 2026 – 27 Annual Professional Learning Plan: Consideration and approval of the 2026 – 27 Annual Professional Learning Plan. ]

OKAY. AI TRAINING, THANK YOU FOR THAT CLARITY. YES, MA'AM. THANK YOU, MISS WILLIAMS. NEXT

[8.E. School Boundary Advisory Committee Membership: Consideration and approval of new members for the School Boundary Advisory Committee (SBAC).]

[Items 8.F & 8.G]

[01:50:01]

SO FOR THIS YEAR, THE PEN TEST, WE'RE ASKING $100,000. SO FOR 30%, WE BASICALLY ARE RESPONSIBLE FOR $30,000. IF THEY ARE AWARDED THE $70,000. AND THEN SAME GOES WITH THE UPS REFRESH. WE REQUESTED $4.6 MILLION, AND OUR PORTION IS $1.387 MILLION. AND THE ONE THING ABOUT THE UPS IS THAT THIS IS PART OF OUR BOND 2023 BOND. AND SO WE HAVE ALREADY ALLOTTED THE FUND FOR IT. SO IF WE WERE TO GET THIS GRANT, THIS WILL ALLOW US TO RELIEVE THAT FUND TO DO OTHER THINGS, SORT OF TECHNOLOGY. OKAY, GOOD. BECAUSE THAT WAS MY NEXT QUESTION IS, WHERE IS THE FUND COMING FROM, THE BOND OR FROM THE GENERAL? THANK YOU.

APPRECIATE IT. THANK YOU, MR. AND MISS HANNON. SO THANK YOU VERY MUCH FOR THAT CLARIFICATION, BECAUSE I HAD ALMOST THE EXACT QUESTION. AND SO JUST IN THE FUTURE FOR THE ITEMS THAT WE HAVE A RESOLUTION LIKE THIS ON, IT'S JUST HELPFUL. LIKE MOST OF OUR ITEMS, IF WE HAVE THE FUNDING SOURCE ON THAT SECOND PAGE, THEN WE DON'T HAVE TO, BECAUSE I DIDN'T REALIZE THAT WE WERE ALREADY COVERED WITH THE MATCHING COMPONENT TO, TO THAT SECOND PART. THAT'S JUST HELPFUL FOR, FOR US. THANK YOU VERY MUCH. APPRECIATE THE CLARITY. THANK YOU, MR. PHAM.

[8.H. Budget Amendment Regarding Use of 2023 Bond Security Funds: Consideration and approval of 2023 Bond Safety and Security Budget Amendment.]

MISS WURZBACH. THANK YOU. THANK YOU CHIEF. OKAY, SO MY TWO QUESTIONS ARE ARE WE ACTUALLY REPLACING VEHICLES OR ARE WE JUST PURCHASING NEW ONES IN ANTICIPATION THAT WE WILL BE REPLACING SOME OF THOSE OLDER VEHICLES, REPLACING SOME OF THE OLDER? WE'RE REPLACING SOME OF THE OLDER UNITS IN OUR FLEET? OKAY. AND THEN I JUST WAS CURIOUS BECAUSE I'VE BEEN AROUND LOCAL GOVERNMENT FOR A WHILE, WHAT IS OUR VEHICLE RETIREMENT SCHEDULE? WE DON'T HAVE ONE. THE DEPARTMENT RUNS THE FLEET OURSELVES. I KNOW THE CMB LOCAL DOESN'T REALLY HAVE ANYTHING IN THERE EITHER. SO EACH DEPARTMENT IS CHARGED WITH WITH RUNNING THEIR OWN PIECE OF IT. SO WE'RE STUDYING THAT PART RIGHT NOW. OKAY. YEAH. I MEAN, I'M OBVIOUSLY NINE YEARS OLD THESE DAYS IS PRETTY OLD. BUT I, YOU KNOW, OBVIOUSLY A LOT OF THINGS GO INTO WHAT WOULD ACTUALLY TRANSITION A VEHICLE OUT OF SERVICE. SO I JUST WAS CURIOUS. THANK YOU. THANK YOU, MISS. MISS HANNAH, DID YOU HAVE SOMETHING OKAY. OH MISS TANIA SO THE AMENDMENT WHICH IS COMING FROM THE BOND SECURITY FUNDS FOR THE VEHICLES. I KNOW WE'RE TAKING 200,000 FROM THE FLOOR MOUNTED DOOR LOCK LINE ITEM AND 240 K FROM THE SAFETY AND SECURITY. ARE WE NOT GOING TO BE NEEDING ANY MORE FLOOR MOUNTED DOOR LOCKS? I'M JUST ASKING BECAUSE IT WE'RE EXHAUSTING THE WHOLE THING. THAT'S WHY. OR. YEAH. NO, NO NO, MA'AM, WE'RE NOT GOING TO THAT THAT MONEY WAS PUT THERE JUST IN CASE WE NEEDED EXTRAS AT THAT TIME. BUT THEY'RE ALL INSTALLED RIGHT NOW. OKAY. THANKS. APPRECIATE IT. THANK YOU CHIEF. NEXT IS ITEM EIGHT I

[8.I. Library Book Purchase Programs Update: Consideration and approval of the purchase of new library materials that were posted for public review beginning April 2026.]

[8.J. SHAC – School Health Advisory Council Membership: Consideration and approval of the recommended 2026-27 School Health Advisory Committee (SHAC) membership roster.]

[8.K. Criminal Justice Grant Program application to implement an Officer Wellness & Readiness Program: Consideration and approval of a Board resolution for the Criminal Justice Grant Program application to implement an Officer Wellness & Readiness Program.]

[8.L.1. Child Nutrition Software: Consideration and approval for the purchase of school nutrition software from CyberSoft Technologies, Inc. under a cooperative contract with Choice Partners in an amount not-to-exceed $850,000 over a five-year period and authorization for the Superintendent to negotiate and execute the agreement through May 2031.]

[8.L.2. District Spirit Store: Consideration and approval for the operation and management of the district online spirit store from STS Brand in an amount not to exceed $2,700,000 over a five-year period and authorization for the Superintendent to negotiate and execute the agreement through May 2031.]

[01:55:02]

BUT DOES IT IMPACT INDIVIDUAL LIKE BOOSTER CLUBS THAT ARE DOING SPIRIT WEAR FOR FUNDRAISING? DO THEY HAVE TO GO THROUGH THE SAME SOFTWARE? NO, MA'AM, THEY DO NOT. OKAY. THIS IS A SEPARATE STORE THAT WOULD ALLOW DISTRICT STAFF AND EMPLOYEES OR STUDENTS TO PURCHASE FORT BEND ISD, A BRANDED APPAREL. THEY DO NOT HAVE TO GO THROUGH THIS, BUT THIS IS A NEW OPTION THAT WOULD PROVIDE THAT. OKAY. THANK YOU. THANK YOU. ITEM EIGHT L THREE

[8.L.3. Course Registration and Evaluation Management System: Consideration and approval for the purchase of evaluation management system from Kickup Inc. in an amount not to exceed $415,000 over a five-year period and authorization for the Superintendent to negotiate and execute the agreement through June 2031.]

[8.L.4. Microsoft Enrollment for Education Solutions (EES): Consideration and approval for the purchase of Microsoft Enrollment for Education Solutions (EES) from SHI International in an amount not to exceed $10,950,000 over a seven (7) year period and authorization for the Superintendent to negotiate and execute the agreement through August 2033.]

THAT'S RIGHT. SO THE WHILE OUR COST AGREEMENT, WE STILL HAVE ONE MORE YEAR ON OUR CURRENT PRICING MODEL. BUT THAT'S THE PRICE PER LICENSE. IT DOES NOT DICTATE THE OVERALL COST. SO AS OUR STORAGE NEEDS GROW, WE PURCHASE ADDITIONAL BLOCKS OF STORAGE. IF THE DISTRICT WERE TO GROW OR ADD STAFF, THAT WOULD INCREASE THE COST. AS WE ADD AI COPILOT LICENSES. THAT'S A COST DRIVER. THE COST PER LICENSE DOESN'T CHANGE, BUT WE CHOOSE HOW MANY LICENSES TO PURCHASE ANY GIVEN YEAR. BECAUSE THIS SEVEN YEAR TERM INCLUDES TWO ADDITIONAL THREE YEAR CYCLES AT THOSE THREE YEAR ROLLS, MICROSOFT CAN AND DOES INCREASE THEIR PER UNIT LICENSE COST TO US. AND THEN WE LOCK FOR THREE YEARS. SO THIS FUNDING INCLUDES THOSE EXPECTED COST INCREASES AT THOSE RENEW RENEWAL CYCLES. OKAY. THANK YOU, I APPRECIATE THAT. THANK YOU.

[8.L.5. Job Order Contract (JOC) for Portable Classroom Building Relocations Associated with Madden ES Slab Repairs and Upgrades (BP023): Consideration and approval to execute a job order with JR Thomas Group, Inc. to perform the necessary relocation, set up and repair for portable classroom buildings needed to support the relocations associated with Madden ES Slab Repairs and Upgrades (BP023); approval of a Design Services Agreement with MWA Architects; approval of a not-to-exceed contract of $600,000; and authorization for the Superintendent to negotiate, execute or terminate the respective contracts.]

IT'S ACTUALLY BEEN BUILT INTO THE CONSTRUCTION PROJECT. OKAY. INTO THE CONSTRUCTION PROJECT BUDGET OF THAT. SO AS WE GET FURTHER ALONG IN THE IN THE PROJECT, WE CAN REFINE THESE NUMBERS AND START MOVING THEM WHERE THEY NEED TO BE. SO WE STILL DO HAVE THE CONTINGENCIES IN THE PROGRAM. OKAY. BECAUSE I JUST SEEN THE UPDATE FROM THE INITIAL TO THE CURRENT. OKAY.

AND THEN I KNOW THIS IS NOT SOMETHING I DON'T KNOW IF THIS IS SOMETHING WE CAN DISCUSS, BUT THERE'S FOUR REMAINING PORTABLES STILL AT NEIL. ARE WE PLANNING TO USE THOSE AT NEIL OR WHAT IS THE YEAH, I DON'T I DON'T THINK WE CAN HAVE THAT CONVERSATION. OKAY. THANK YOU.

SORRY BUT YOU CAN OFFLINE. OKAY. YEAH. THANK YOU. YEAH. THANK YOU. OKAY. ITEM EIGHT L SIX

[8.L.6. Guaranteed Maximum Price (GMP) No. 2 for the Madden ES Slab Repairs & Upgrades (BP023): Consideration and approval of a Guaranteed Maximum Price (GMP) No. 2 with Millennium Project Solutions, Inc. for the Madden ES Slab Repairs & Upgrades (BP023) for a not-to-exceed amount of $13,209,076 and authorization for the Superintendent to execute the GMP Amendment.]

[Items 8.L.7 - 8.L.9]

[02:00:01]

[8.L.10. Cheerleader and Dance Team Uniforms, Supplies, and Related Items: Consideration and approval for the purchase of cheerleader and dance team uniforms, supplies, and related items from multiple vendors in an amount not to exceed $650,000 over a five-year period and authorization for the Superintendent to negotiate and execute the agreements through May 2031.]

[8.L.11. Online Payment Services for Sports Officials: Consideration and approval for the purchase of Online Payment Services for Sports Officials from Arbiter through the Central Texas Purchasing Alliance contract in an amount not-to-exceed $217,609, a five-year period and authorization for the Superintendent to negotiate and execute the agreement through May 2031.]

[8.L.12. Virtual School Provider: Consideration and approval for a partnership with Edmentum to provide instructional and programmatic support for the district’s virtual high school under a cooperative contract with The Interlocal Purchasing System (TIPS) in an amount not to exceed $4,200,000 over a five-year period and authorization for the Superintendent to negotiate and execute the agreement through June 2031.]

YES. SO I'M GOING TO ASK SOME QUESTIONS BECAUSE I, I, I AND I, I DON'T HAVE TO HAVE THE ANSWERS, BUT I, I WANT TO ASK THEM BECAUSE THIS IS A WORKSHOP AND I WANT MY COLLEAGUES TO HEAR SOME OF MY QUESTIONS. SO THIS IS REGARDING THE VIRTUAL SCHOOL PROVIDER AND. THIS MY FIRST QUESTION IS THIS THE THE ONLY VENDOR THAT WAS IN THE INTERLOCAL PURCHASING SYSTEM TO PROVIDE THIS SERVICE? MISS HANNON WE REVIEWED SEVERAL VENDORS THAT WE'VE EITHER DONE BUSINESS WITH IN THE PAST OR HAVE COOPERATIVE AGREEMENTS. WE LOOKED FOR VARIOUS ITEMS AS CRITERIA. ONE OF THEM WAS, COULD THEY OFFER TEXAS CERTIFIED TEACHERS? WOULD THEY BE ABLE TO PROVIDE A PROGRAM THAT SUPPORTS STUDENTS THAT HAVE ACCOMMODATIONS NEEDED? EB SUPPORTS THINGS OF THAT NATURE. WE ALSO WERE LOOKING FOR PROGRAMS THAT WERE ABLE TO CUSTOMIZE WHAT WE NEEDED TO LAUNCH THIS PROGRAM, AND HAD NICE COURSE AVAILABILITY THAT WAS COMPARABLE TO WHAT WE OFFER IN THE DISTRICT. AND SO THAT'S WHY WE ARE MOVING FORWARD WITH THIS PARTICULAR ONE. WE ALSO KNOW THAT LONG TERM, THEY WOULD MEET THE CRITERIA FOR US TO CONTINUE PARTNERING WITH THEM. WHEN WE CREATE THE STANDALONE CAMPUS, AND ALSO THEIR COURSES AND THEIR TEACHERS ALLOW US TO MAINTAIN STUDENTS NCAA ELIGIBILITY IN THE FUTURE. SO WE WERE LOOKING AT SOME LONG TERM IMPLICATIONS WITH WHO WE PARTNERED WITH. OKAY. SO THEY WOULD BE THEY WOULD, I GUESS THEY'RE ALREADY ACCREDITED. YES, BY THE STATE. AND SO THAT WOULD BE ONE LESS THING THAT WE HAVE TO LOOK AT. OKAY, SO THAT IS ONE OF MY QUESTIONS AND I'M SORRY NEEDS MY FACE. SO AGAIN, I JUST AND, AND OUR ATTORNEY CAN SHUT US DOWN, BUT BECAUSE I'M APPROVING THE VENDOR FOR A PROGRAM, I JUST HAVE OTHER QUESTIONS BECAUSE, AND I THINK IT IS APPLICABLE TO THIS. BUT SO WHEN I LOOKED BACK AT THE WEBSITE, BECAUSE I WANT TO BE CLEAR WHAT I AM APPROVING AS A BOARD MEMBER. AND SO IT'S, IT'S READING THAT 100% OF THE CONTENT IS ONLINE THAT WE ARE PROVIDING FOR THIS PROGRAM. BUT IT ALSO OUR WEBSITE SAYS, IF YOU LIVE IN FORT BEND ISD, YOU CAN PARTICIPATE IN EXTRACURRICULARS. IF YOU CAN GET THERE. SO HOW DOES THAT IMPACT THIS VENDOR? SO IF, IF THE, THE WORK WITH THE VENDOR IS VERY FLEXIBLE. THEY EVEN RUN IN OTHER DISTRICTS LIKE HYBRID MODELS. SO WE GET TO DESIGN THAT PLAN TO ALLOW FOR STUDENTS TO ENGAGE IN FACE TO FACE EXPERIENCES AT A CAMPUS. IF THAT IS PART OF OUR GUIDELINES THAT ALLOW THEM TO PARTICIPATE IN SPORTS, FINE ARTS AND

[02:05:05]

THANK YOU. THANK YOU, MISS HUBBARD. I GUESS MY STATEMENT WAS THAT WE'VE ALREADY APPROVED VIRTUAL SCHOOL. SO THERE, I ASSUME RFP OR WHATEVER BIDDING PROCESS THAT THEY USE, THEY HAVE THEIR CRITERIA FOR ANY VENDOR, REGARDLESS OF WHETHER IT WAS THIS VENDOR OR NOT. AND SO THE THE DISTRICT HAS SELECTED THIS PARTICULAR VENDOR FOR US TO APPROVE WITH THE SAME CRITERIA FOR ANY PARTICULAR VENDOR. SO I GUESS I'M JUST I'M TRYING TO UNDERSTAND YOUR QUESTION OF WHY THIS SPECIFIC VENDOR, IN A SENSE OF WHAT ARE YOU LOOKING FOR FROM A PERSPECTIVE OF WHAT DO YOU WANT US TO KNOW? WELL, NO ONE IS I WANTED TO I WANTED TO MAKE SURE THEY THAT THAT THIS VENDOR WAS AN EASY ACCREDITATION BOX TO, TO CHECK OFF AS WE MOVE TO BE A STANDALONE OR AS THIS VIRTUAL SCHOOL BECOMES A STANDALONE. AND I THINK THAT MISS HUBBARD ANSWERED THAT. AND I SEE DOCTOR JORDAN IS DOING A. YES, BUT I STILL WANTED TO BE VERY CLEAR AS TO AS TO UNDERSTANDING WHAT IS THE 100% CONTENT THAT THIS VENDOR IS GOING TO PROVIDE TO OUR STUDENTS BECAUSE, WELL, I'LL I'LL ASK IT OFFLINE AND YOU MAYBE YOU'LL GET MY ANSWERS OR THE ANSWERS WILL BE GIVEN ABOUT THE ONES THAT THEY AREN'T PROVIDING, WHERE THE STUDENTS CAN COME FACE TO FACE. THAT'S, THAT'S JUST SOME CONFUSION I HAVE. OKAY. THANK YOU. MAY I HAVE A MOTION TO ADJOURN?

* This transcript was compiled from uncorrected Closed Captioning.