RESPECTFUL OF OTHERS BY REMAINING QUIET, SO THAT EVERYONE IS ABLE TO HEAR THE
[1. Call to order]
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PROCEEDINGS. THANK YOU. THANK YOU SERGEANT. THE TIME IS 5 P.M. AND THIS MEETING IS HEREBY CALLED TO ORDER. WE HAVE THE PRESENCE OF A QUORUM ATTENDING IN PERSON AND NOTICE OF THIS MEETING HAS BEEN POSTED ONLINE AND AT THE FORT BEND ISD ADMINISTRATION BUILDING FOR AT LEAST THREE BUSINESS DAYS. FIRST ON OUR AGENDA IS PUBLIC COMMENT AND WE HAVE NO SPEAKERS[3.A. 2026-27 Budget Update]
FOR THE HEARING THIS EVENING. SO WE'LL GET RIGHT INTO OUR INFORMATION ITEM, WHICH IS THE 2020 526 BUDGET UPDATE. DOCTOR SMITH. YES, MA'AM. THANK YOU, MADAM PRESIDENT. GOOD EVENING.TRUSTEES AND STAFF AND THOSE THAT ARE PRESENT AND THOSE THAT ARE WATCHING ONLINE. TODAY WE ARE HAVING OUR FIRST BUDGET WORKSHOP. I AGAIN WANT TO THANK THE BOARD FOR THE TIME THAT YOU GAVE US LAST SEVERAL DAYS OF HAVING OUR SMALL GROUP MEETINGS. WE HAVE TAKEN THAT FEEDBACK FROM THE SMALL GROUP MEETINGS, AS WELL AS FROM OUR REVIEW MEETING ON LAST WEEK, AND WE'VE INCORPORATED THAT INFORMATION TO PROVIDE YOU UPDATES AND CLARITY IN TODAY'S PRESENTATION AS WE MAKE OUR WAY TOWARD THE 15TH OF JUNE FOR BUDGET ADOPTION TIME. MISTER GWINN, OUR CFO, AND MISS KATHLEEN BROWN WILL BE PARTNERING IN THIS PRESENTATION. I'LL TURN IT OVER TO MR. GWINN. THANK YOU, DOCTOR SMITH. AND GOOD EVENING, MADAM PRESIDENT AND MEMBERS OF THE BOARD. THE PRESENTATION THIS EVENING IS INTENDED TO RECAP INFORMATION YOU HAVE PREVIOUSLY SEEN AND ADDRESS QUESTIONS THAT YOU'VE HAD ALONG THE WAY. AS DOCTOR SMITH SHARED ON MAY 4TH AND ALSO DURING THE SMALL GROUP MEETINGS, WE WANT TO MAKE SURE YOU HAVE THE INFORMATION YOU NEED IN ORDER TO ADOPT THE BUDGET ON THE 15TH. AND SO THAT'S WHAT WE'LL COVER IN THIS PRESENTATION THIS EVENING. THAT'S ACTUALLY NOT PART OF THE PRESENTATION. WE'LL START OFF WITH A RECAP OF THE SAVINGS THAT WE HAVE INCORPORATED INTO THE BUDGET. A TOTAL OF $10.9 MILLION IN SAVINGS HAVE BEEN IDENTIFIED THAT ARE IN CENTRAL ADMINISTRATION, AND THAT INCLUDES THE ELIMINATION OF 116 VACANT POSITIONS. WE'VE ALSO REALIZED $8.8 MILLION IN SAVINGS FROM BOUNDARY CHANGES, CONSOLIDATIONS, AND DECLINING ENROLLMENT. HR HAS BEEN WORKING TO PLACE STAFF THAT HAVE BEEN IMPACTED BY EACH OF THOSE AREAS INTO NEW ROLES THAT THEY ARE QUALIFIED TO DO. AND SO THE SAVINGS THAT WE HAVE REALIZED HAVE BEEN WHEN THEY HAVE MOVED INTO FROM THEIR OLD POSITION INTO NEW POSITIONS THAT ARE VACANT. AND SO THAT IS THE PRIMARY BASIS OF THOSE SAVINGS. BETWEEN THE STRATEGIC AND CENTRAL ADMINISTRATION REDUCTIONS, A TOTAL OF $19.7 MILLION HAS BEEN REDUCED FROM THE BUDGET. WE'VE ALSO IDENTIFIED $2.5 MILLION IN NEW REVENUE. THAT'S PRIMARILY COMING FROM INTEREST, EARNINGS AND CTE EXPANSION. AND AS WE SHARED WITH YOU LAST TIME, INTEREST EARNINGS ARE EXPECTED TO BE HIGHER BECAUSE THE FEDERAL RESERVE HAS PLACED A PAUSE ON INTEREST RATE DECREASES. THEREFORE, WE'LL EXPERIENCE MORE INTEREST EARNINGS. AND THEN FOR CTE EXPANSION, AS WE'VE SHARED PREVIOUSLY, WE'RE OPENING SOME ADDITIONAL PATHWAYS. THOSE STUDENTS WILL GENERATE ADDITIONAL REVENUE AS A RESULT OF PARTICIPATION. WE'VE SHARED WITH YOU ALL THE MAJOR ASSUMPTIONS ASSOCIATED WITH THE GENERAL FUND. AND TO QUICKLY RECAP THAT, WE HAVE REMOVED THE ONE TIME REVENUES FROM THE BUDGET. THAT INCLUDES $64 MILLION, ABOUT $41 MILLION OF THAT ONE TIME REVENUE WAS FROM THE DISASTER PENNIES THAT WERE ONE TIME, AND THE REMAINING $23 MILLION WAS FROM THE ONE TIME PROPERTY VALUE AUDITS THAT THE DISTRICT RECEIVED. OUR ENROLLMENT PROJECTION IS BASED ON THE LATEST PROJECTION, AND WE'RE ASSUMING 76,854 STUDENTS. THAT IS BASED ON THEIR BASELINE PROJECTION THAT WE USED. OUR ATTENDANCE RATE IS ASSUMED AT 95%. AND SO WHAT I WOULD POINT OUT AS A REMINDER THAT THOSE TWO COMPONENTS, ENROLLMENT AND ATTENDANCE, ARE THE LARGEST PORTION THAT GENERATE REVENUE FOR THE DISTRICT. AND SO THOSE ARE KEY FACTORS IN EVERYTHING THAT WE LOOK AT FROM OUR REVENUE ASSUMPTIONS. WE HAVE ALSO ALSO INCLUDED THE APPRECIATION SUPPLEMENT YEAR TWO THAT WAS FUNDED WITH DISASTER PENNIES, THAT IS BUILT INTO THE BUDGET THAT YOU'VE SEEN AND REVIEWED. WE'VE INCORPORATED THE HEALTH FUND DEFICIT. THE 25.8 MILLION THAT YOU SEE THERE IS RELATED TO THE GENERAL FUNDS PORTION OF THAT DEFICIT, WITH THE REMAINING PORTION OF IT BEING SHARED BY THE CHILD NUTRITION FUND AND OTHER OPERATING FUNDS THAT HAVE EMPLOYEES IN IT. WE HAVE THE OPENING OF COLEMAN MIDDLE SCHOOL. AND THEN, AS WE'VE SHARED WITH YOU JUST A MOMENT AGO, WE'VE REDUCED THE WE'VE HAD STRATEGIC REDUCTIONS TOTALING $19.7 MILLION THAT HAVE BEEN INCORPORATED INTO THE BUDGET. THE LAST TWO ITEMS ON THERE ARE THE STRATEGIC REDUCTION HOLD HARMLESS. AS A REMINDER, WE DO HAVE SOME STAFF, ABOUT 30 STAFF MEMBERS WHO ARE IN POSITIONS THAT HAVE BEEN
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TARGETED FOR REDUCTIONS. THE PLAN IS TO HOLD THOSE POSITIONS HARMLESS FOR THE DURATION OF THE 2627 SCHOOL YEAR. AND SO THERE ARE FUNDS INCORPORATED INTO THE BUDGET TO MAINTAIN THOSE POSITIONS. AND THEN LASTLY, THE $2.5 MILLION IN NEW REVENUE THAT WE JUST MENTIONED.AND SO WHERE WE LEFT YOU ALL ON MAY THE 4TH, WAS THAT WE WERE EXPECTING A GENERAL FUND BUDGET OUTLOOK AT 87 DAYS, AND THAT IS SLIGHTLY BELOW OUR FORECAST. HOWEVER, WE'LL SHOW YOU IN JUST A FEW MINUTES HOW THINGS LOOK NOW. AND I'M PLEASED TO REPORT THAT WE WILL SHOW YOU A FORECAST THAT IS ABOVE 90 DAYS. I'M GOING TO TURN IT OVER TO MISS KATHLEEN BROWN NOW, AND SHE'LL UPDATE YOU ON THE COMPENSATION PORTION. BEFORE WE SHARE THAT REVISED OUTLOOK.
GOOD EVENING, MADAM PRESIDENT, BOARD OF TRUSTEES AND DOCTOR SMITH. THIS EVENING I WILL RECAP SOME OF THE INFORMATION THAT WAS SHARED WITH YOU IN THE BUDGET WORKSHOP ON LAST WEEK, IN OUR WORKSHOP MEETING ON LAST WEEK, AS WELL AS SPEAK TO SOME OF THE QUESTIONS THAT YOU INQUIRED ABOUT DURING THAT PRESENTATION. AND SO STARTING OFF JUST WHERE WE ARE RELATED TO COMPENSATION, WHAT OUR REALITY CURRENTLY LOOKS LIKE, WE KNOW THAT WE HAVE NOT HAD A GENERAL PAY INCREASE IN THREE YEARS, AND WE HAVEN'T HAD EQUITY ADJUSTMENTS IN THE LAST SEVEN YEARS. AND OF COURSE, THAT IS IMPACTING US AS WE LOOK AT OUR BENCHMARK DISTRICTS AROUND US, OUR PEERS AND MOVES THAT THEY HAVE MADE OVER THOSE THREE AND SEVEN YEAR PERIODS.
AND WHAT THAT MAKES US LOOK LIKE AS IT RELATES TO THE MARKET. SO ALTHOUGH THE MARKET HAS BEEN MOVING AROUND US, WE HAVE STAYED STILL FOR THREE YEARS FOR GENERAL PAY INCREASE AND THEN EQUITY ADJUSTMENTS. OVER THE LAST SEVEN YEARS, WE HAVE NOT HAD ANY AS HOW DID WE GET HERE? WE KNOW THAT WE GOT HERE BECAUSE WE HAVE BUDGET CONSTRAINTS. WE HAVE NOT HAD MANY CHANGES TO OUR COMPENSATION STRUCTURE OVERALL. I SPOKE WITH YOU LAST WEEK ABOUT THE FACT THAT TYPICALLY EVERY 3 TO 5 YEARS, THAT MINIMUM MID AND MAX PAY GRADE IN EACH SCALE WOULD CHANGE. AND FOR US, THOSE HAVE STAYED THE SAME. WE HAVE CONTINUED TO EXPAND THE ROLES OF OUR EMPLOYEES WITHOUT CHANGING THEIR PAY. AND OUR PEER DISTRICTS HAVE CONTINUED TO MAKE THOSE ADJUSTMENTS, RESULTING IN MARKET MISALIGNMENT HERE IN FORT BEND ISD. IF WE CONTINUE TO NOT TAKE ACTION ON THOSE THOSE THINGS, THEN IT WOULD MAKE MAKE US HAVE THE IMPRESSION THAT WE ARE CURRENTLY EXPERIENCING WHEN WE TALK ABOUT OUR TEACHER PATHWAY POSITIONS, SPECIFICALLY THOSE POSITIONS THAT TEACHERS ASPIRE TO OBTAIN AFTER LEAVING THE CLASSROOM. AN ASSISTANT PRINCIPAL SPECIALIST. WE HAVE COMPRESSION IN THOSE PAY GRADES THAT MAKE IT NOT ADVANTAGEOUS FOR THEM TO APPLY FOR THOSE POSITIONS. IT ALSO IMPACTS US AS IT RELATES TO OUR RECRUITMENT AND RETENTION. THAT BECOMES A CHALLENGE FOR US. WE WILL TALK A LITTLE BIT ABOUT TOTAL COMPENSATION A FEW SLIDES FROM NOW, BUT WHEN A PERSON DOES NOT HAVE A GOOD UNDERSTANDING OF WHAT TOTAL COMPENSATION LOOKS LIKE, IT'S A IT'S A CHALLENGE BECAUSE WE ARE RECRUITING YOU FROM A PLACE THAT HAS HAD THAT MARKET MOVEMENT OVER YEARS AND ASKING YOU TO COME INTO A PLACE WHERE WE HAVE NOT HAD THAT, THAT, THAT MOVEMENT. AND SOMETIMES THE PAY THAT WE'RE OFFERING YOU MAY BE LESS THAN WHERE YOU'RE COMING FROM. SO THAT MAKES OUR CAREER PATHWAYS LOSE THE VALUE THAT WE WANT THEM TO HAVE. AND THE LONGER THAT IT TAKES US TO MAKE THESE MOVEMENTS, IT WILL INCREASE OUR FUTURE COSTS. WE RELATED THAT LAST TIME AS IT RELATES TO THE BOND. THE LONGER IT TAKES US TO TO PAY FOR SOMETHING, THEN IT'S INCREASING OVER TIME. SO WE DID HAVE A TASK BE COMPENSATION STUDY IN 2025. I WANT TO REMIND YOU THAT THE INFORMATION THAT TASB WAS LOOKING AT HAD TO DO WITH 20 TO 24, 25 SCHOOL YEAR. SO NOW WE'RE ABOUT TO GO INTO THE 26, 27 SCHOOL YEAR. AND SO SOME OF THOSE FIGURES WOULD BE OUTDATED. ON SEPTEMBER 8TH, TASB DID COME AND SHARE THEIR FINDINGS WITH THE BOARD. AND THERE WERE FOUR BIG CATEGORIES THAT THEY LOOKED AT FOR US, THAT THEY HAD FINDINGS IN. ONE, OUR PAY STRUCTURE, WHICH I ALLUDED TO AT THE BEGINNING, WAS NOT ALIGNED WITH MARKET RATES. AND SO WHEN THEY ARE LOOKING AT US AS AN ORGANIZATION, THEY'RE LOOKING AT OTHER PEER DISTRICTS, AND THEN THEY'RE ALSO LOOKING AT JOBS THAT ARE LIKE IN THE MARKET, JUST FAIR MARKET VALUE TO SEE IF WE ARE ALIGNED. ALSO, THEY RECOMMENDED THAT WE NEEDED TO LOOK AT A GENERAL PAY INCREASE TO IMPLEMENT, IMPLEMENT THAT MARKET POSITION, NOT TO GET TO THE TO THE HEAD OF THE LINE, BUT TO HELP US TO STAY COMPETITIVE IN THE MARKET. THE OTHER TWO PIECES HAD TO DO WITH EQUITY ADJUSTMENTS, WHICH WE KNOW WE HAVE NOT HAD THOSE IN SEVEN YEARS, AND THEN SOME ADJUSTMENTS IN SOME STIPENDS, NOT ALL STIPENDS, SOME STIPENDS. WE WERE VERY HEALTHY AS IT RELATED TO FINE ARTS, BUT THERE WERE OTHER AREAS WHERE WE LAGGED THE MARKET, FOR EXAMPLE, AS IT RELATES TO OUR ATHLETICS AND SOME OF OUR HARD TO FILL AREAS THAT I'LL SPEAK TO YOU ABOUT HERE IN A FEW MOMENTS AS WELL. WHEN THEY CAME TO TALK TO US IN SEPTEMBER OF 2025, WE KNEW THAT IT WOULD COST US BETWEEN 37 MILLION AND $40 MILLION TO IMPLEMENT THE FINDINGS THAT THEY GAVE US AT THAT TIME, AND WE KNOW THAT IT WOULD BE HIGHER THAN THAT, BECAUSE THE MARKET, OF COURSE,
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HAS CONTINUED TO MOVE. SO WHAT WE DID AS A DISTRICT, WE DID NOT SIT STILL. THE PENNIES DID HELP US TO CREATE WINS FOR OUR EMPLOYEES HERE IN FORT BEND ISD. AND SO BOARD, WE'RE VERY THANKFUL FOR YOU PARTNERING WITH US TO MAKE THESE THINGS AVAILABLE FOR OUR OUR STAFF.FOR EXAMPLE, WE KNOW THE STATE IN ENACTED THE TEACHER RETENTION ALLOTMENT THAT DID NOT IMPACT ALL TEACHERS. AND SO WE MADE A DECISION AS A DISTRICT TO RECOMMEND THAT WE MOVE THOSE STARTING TEACHER PAY GRADES JUST A LITTLE FROM THOSE 0 TO 2 YEAR TEACHERS, SO THAT WE WERE ABLE TO, TO GIVE THEM SOMETHING IN THE PROCESS, SINCE THEY DID NOT QUALIFY. WE ALSO IMPLEMENTED THE TWO WELLNESS DAYS FOR STAFF MEMBERS, AND STAFF MEMBERS WERE ABLE TO TAKE THOSE TWO WELLNESS DAYS. DURING THIS CURRENT SCHOOL YEAR, IF A SUB WAS REQUIRED. THE DISTRICT ALSO ASSUMED THE COST FOR THAT SUBSTITUTE AS WELL. THE PERFECT ATTENDANCE FOR BUS DRIVERS WAS ANOTHER WIN THAT FAIRED VERY WELL FOR US. WE HAVE. WE HAD ONE GROUP OF BUS DRIVERS WHO WERE RECEIVED AN INCENTIVE FOR THE FIRST SEMESTER. SOME OF THOSE SAME DRIVERS ARE ON TRACK TO RECEIVE THAT INCENTIVE FOR THE SECOND SEMESTER, AND THEN TO GO INTO THE DRAWING FOR THE FOR THE GRAND PRIZE FOR PERFECT ATTENDANCE. THAT HAS BEEN A HELP TO US. WHEN DRIVERS SHOW UP, TYPICALLY WE'RE HAVING LOTS OF ABSENCES ON MONDAYS, FRIDAYS WHEN IT'S RAINING, WHEN IT'S PAYDAY. THIS INCENTIVE HAS PROVEN TO BE BENEFICIAL WITH DRIVERS BEING PRESENT. WE ALSO FROZE OUR HEALTH. HEALTH INSURANCE PREMIUMS FOR THIS CURRENT SCHOOL YEAR, AND I'LL TALK TO YOU A LITTLE BIT MORE ABOUT THAT. WE ALSO KEPT OUR SUPPLEMENTAL INSURANCE AND WE ADDED SIGNING BONUSES FOR HARD TO FILL POSITIONS ON. LAST WEEK YOU ASKED ME ABOUT SOME OF THOSE WINS AND WHAT THE IMPACT OF THOSE WERE, AND I'LL BE SHARING WITH YOU WHAT WHAT WE'VE DONE OVER THE LAST WEEK. I'M EXCITED TO SHARE THAT. THE ONLY ONE THAT IS SCHEDULED CURRENTLY TO MOVE INTO THE NEXT YEAR IS THE TWO YEAR SUPPLEMENT. REMEMBER, EMPLOYEES WHO WERE NOT ELIGIBLE FOR THE TEACHER RETENTION ALLOTMENT THIS SCHOOL YEAR RECEIVED THAT ONE TIME SUPPLEMENT, AND THEY'RE ON TRACK TO RECEIVE THAT SUPPLEMENT AGAIN FOR THE 2627 SCHOOL YEAR. SO WHEN WE LOOK AT OUR CLASSROOM TEACHER COMPENSATION COMPARISON, WHEN WE'RE WE'RE LOOKING AT WHERE WE START, WE DO START BELOW THE MARKET HERE IN FORT BEND ISD.
WHEN YOU'RE LOOKING JUST AT BASE SALARY, NOT THEIR TOTAL COMPENSATION, JUST THEIR BASE SALARY. AND AT YEAR FIVE AND BEYOND, WE ARE VERY PROUD THAT FORT BEND ISD DOES EXCEED THE MARKET AT YEAR FIVE AND BEYOND DUE TO THE THE WORK OF OUR OUR BOARD WITH THAT DIFFERENTIATED TEACHER STEP. SO WHEN MISTER GWEN TALKS A LITTLE BIT LATER ABOUT NO RAISE OR IF THERE WAS GOING TO BE A RAISE THIS YEAR, IT'S IMPORTANT FOR US TO ALWAYS REMEMBER THAT ANNUALLY, FORT BEND ISD DOES GIVE TEACHERS THEIR STEP. SO FOR EXAMPLE, IF I'M A ZERO YEAR TEACHER THIS YEAR, NEXT YEAR THE STEP I WOULD MOVE TO STEP ONE THAT WOULD BE INCLUDED IN THE BUDGET THAT IS BEING PRESENTED, PRESENTED TO YOU. YOU CAN SEE THE KEY TAKEAWAYS FOR US DOES LIST THE STARTING TEACHER SALARIES AS IT RELATES TO SOME OF OUR OTHER DISTRICTS. THOSE ARE DISTRICTS WHO ARE IN OUR PEER GROUP. AND WHEN YOU LOOK AT JUST BASE PAY, NOT TOTAL COMPENSATION, WE DO LAG BEHIND THE MARKET. SO WE'LL LOOK AT A COUPLE OF EXAMPLES. WE PROVIDED EXAMPLES LIKE THIS TO YOU LAST YEAR. A LOT OF THIS HAS TO DO WITH WHERE WE ARE WITH OUR HEALTH INSURANCE. AND SO WE KNOW WHEN WE TALK ABOUT OUR DEFICIT, WE TALK ABOUT A PART OF OUR DEFICIT BEING OUR HEALTH INSURANCE. AND WE KNOW ALL THE TIMES WE DON'T HEAR POSITIVE THINGS ABOUT HEALTH INSURANCE. BUT WHEN YOU'RE ON THE INSIDE, WE SEE THAT A LITTLE BIT DIFFERENTLY BECAUSE OUR OUR BENEFITS DO OUTWEIGH THOSE OF SOME OF OUR PEER DISTRICTS. AND SO WE'LL TAKE A LOOK AT WHAT THAT MEANS FOR US WHEN WE ARE LOOKING AT TEACHER WHO WOULD BE IN THEIR FIRST YEAR TEACHING WITH FORT BEND ISD. SO THEY WOULD BE ON A STEP ZERO IF THEIR SALARY IS $64,015. WHEN WE'RE LOOKING AT THEIR HEALTH INSURANCE PREMIUMS, THEY WOULD BE PAYING $745 A YEAR. THEIR TRS PAYMENT WOULD BE ABOUT $5,240 A YEAR. AND SO WHAT THEY WOULD BE BRINGING HOME, WHAT THEY'D BE BRINGING HOME PRIOR TO ANY OTHER DEDUCTIONS COMING OUT. THEY MAY TAKE VISION OR OTHER THINGS. THIS IS JUST THEIR HEALTH INSURANCE. WHAT THEY WOULD BRING HOME WOULD BE $58,030. WHEN WE'RE LOOKING AT DISTRICT ONE AND DISTRICT TWO, THOSE ARE DISTRICTS WHO ARE WHO ARE PEERS TO US. WHEN YOU LOOK AT THE HEALTH INSURANCE, WHAT ARE WHAT AN EMPLOYEE WOULD BE RESPONSIBLE FOR PAYING FOR THEIR PREMIUM ON AN ANNUAL BASIS? DISTRICT ONE THAT HEALTH INSURANCE PREMIUM WOULD COST THEM OVER IN DISTRICT TWO, OVER $1,000. SO WHEN YOU LOOK AT THE BOTTOM LINE OF WHAT WHAT THEIR NET PAY WOULD BE, FORT BEND ISD WOULD BE $58,030. YOU SEE THAT IN DISTRICT ONE, WE WOULD BE PAYING MORE THAN THEM. WHEN WE LOOK AT TOTAL COMPENSATION AND WHAT THEY ACTUALLY TAKE HOME.
AND WE'D BE A LITTLE BIT LESS THAN DISTRICT TWO. SO ACTUALLY IT WOULD BE $1,644 MORE IN DISTRICT ONE AND $1,670 LESS THAN DISTRICT TWO. SO MR. SHOAFF DID ASK THIS QUESTION ON
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LAST WEEK ABOUT TOTAL COMPENSATION. AND THAT'S WHY WE SHARE THIS. WHEN WE HAVE EMPLOYEES WHO ARE SEEKING TO LEAVE OUR ORGANIZATION, WE TALK TO THEM ABOUT DO YOU PLAN TO TAKE BENEFITS, MAKE SURE THAT YOU LOOK AT THE BENEFITS PLAN AND WHERE YOU'RE GOING, AND WEIGH THE BENEFITS AND SEE WHAT YOUR TAKE HOME WILL ACTUALLY LOOK LIKE. AND SOMETIMES THAT WORKS. OTHER TIMES IT DOESN'T. TODAY WE WERE ACTUALLY TALKING ABOUT EMPLOYEES WHO HAVE LEFT US PREVIOUSLY AND THEN CAME BACK ONCE THEY HAVE TAKEN BENEFITS. NOW THE QUESTION IS, DOES EVERYBODY TAKE BENEFITS FROM THE DISTRICT? NO, THEY DO NOT. IF I'M LOOKING AT TEACHERS WHO HAVE ZERO YEARS OF EXPERIENCE HERE IN FORT BEND ISD, WE HAVE ABOUT 185 TEACHERS WHO TAKE OUR HEALTH INSURANCE CURRENTLY THIS YEAR, ANOTHER 190 TAKE BENEFITS AND THEY ARE HEALTH BENEFITS, AND THEY ARE IN THEIR SECOND YEAR OF TEACHING. AND SO EVERYBODY DOES NOT TAKE BENEFITS AND TAKE OUR HEALTH INSURANCE BENEFITS. BUT IF YOU DO, IT IS IMPORTANT THAT YOU LOOK AT YOUR TOTAL COMPENSATION. IF WE'RE LOOKING AT A TEACHER WHO'S IN THEIR FIRST YEAR AND THEY TAKE OUR HIGHEST PLAN, SO WE DO HAVE A, A, A RANGE OF BENEFITS PLANS THAT EMPLOYEES CAN CHOOSE FROM. IF YOU TAKE OUR HIGHEST COST IN HEALTH PLAN BECAUSE FOR VARIOUS REASONS, EMPLOYEES TO CHOOSE BASED ON WHAT THEIR NEEDS ARE, YOU WOULD LOOK AT THAT SAME ANNUAL RATE OF PAY AND THEN LOOK AT WHAT THE HEALTH INSURANCE WOULD COST THE EMPLOYEE $10,640 A YEAR HERE IN FORT BEND ISD, MAKING THEIR NET TAKE HOME $47,635. IF YOU LOOK ACROSS AT DISTRICTS ONE AND TWO, YOU CAN SEE HOW MUCH MORE IT WOULD COST FOR THE HIGHEST COST HEALTH PLAN IN DISTRICT ONE AND DISTRICT TWO. DISTRICT ONE BEING OVER $17,000 THAT IT WOULD COST AN EMPLOYEE. AND IN DISTRICT TWO OVER $20,000, IT WOULD COST THE EMPLOYEE. SO IN FORT BEND ISD, D, A FIRST YEAR TEACHER WOULD MAKE $5,757 MORE IN FORT BEND ISD THAN IN DISTRICT ONE AND $7,147 MORE TAKE HOME THAN DISTRICT TWO. AND SO WHEN WE TALK ABOUT THE FACT THAT OUR PREMIUMS ARE NOT. HI THERE. HI. HI. BUT THEY'RE NOT AS HIGH AS OUR NEIGHBORS.THIS IS WHAT WE'RE TALKING ABOUT. BECAUSE DEPENDING ON THE DISTRICT AND WHAT THEY PROVIDE FOR, FOR EXAMPLE, ONE OF THESE DISTRICTS TAKES TRS ACTIVE CARE AND THE OTHER ONE HAS PLAN PLANS THAT ARE SIMILAR TO TO HOW WE PROVIDE INSURANCE FOR OUR STAFF MEMBERS. SO LET'S LOOK AT IT IN A BROADER PERSPECTIVE AND LOOK AT TEACHERS WHO REMEMBER WE TALKED ABOUT WHEN YOU HEAR YOUR FIVE IN FORT BEND ISD, WE EXCEED THE MARKET WITH OUR TAKE HOME PAY.
AND SO IF WE GO THERE AND LOOK AT A CLASSROOM TEACHER WITH FIVE YEARS OF EXPERIENCE, THEY WOULD TAKE OVER $2,700 MORE HOME HERE IN FORT BEND ISD THAN IN DISTRICT ONE. THEY TAKE 520, $28 LESS IF THEY WERE IN DISTRICT TWO ON THAT LOWEST COST HEALTH PLAN. SO IF YOU LOOK ACROSS AT ALL THE GREEN LAST WEEK WHEN I SAID IT PAYS TO TO BE A PART OF FORT BEND ISD, IT TRULY DOES NOT ONLY EXCEEDING THE MARKET AS IT RELATES TO OUR TEACHER DIFFERENTIATED PAY AT YEARS FIVE AND BEYOND. BUT WHEN YOU FACTOR IN THE BENEFITS PIECE, OUR HEALTH INSURANCE PREMIUMS, YOU CAN SEE ALL OF THE GREEN AND HOW MUCH MORE THE TAKE HOME IS FOR OUR TEACHERS. THE LARGEST ONE ON HERE AT OUR HIGHEST HEALTH COST PLAN IS OVER $10,700 THAN DISTRICT NUMBER TWO. OKAY. ALL RIGHT. SO OUR CURRENT AREAS OF FOCUS ARE THE SAME FOR US. WE'RE CONTINUING TO LOOK AT OUR BENCHMARK PEER DISTRICTS BECAUSE WE KNOW WHEN EMPLOYEES ARE APPLYING FOR A JOB, THEY ARE LOOKING AT WHAT IS THE PAY THAT THEY'RE OFFERING ME. MANY TIMES PEOPLE DON'T LOOK AT THEIR TOTAL COMPENSATION. THEY WANT TO LOOK AT, OKAY, WHAT IS WHAT IS MY BEGINNING PAY? IF I'M A TEACHER, IF I'M AN ASSISTANT PRINCIPAL, IF I'M A DIAGNOSTICIAN, A COUNSELOR, A NURSE, WE ALSO ARE FOCUSING ON ADJUSTING WITHIN OUR CURRENT FISCAL REALITY, EVEN WITH THE THE UNDERSTANDING THAT WE HAVE NOT HAD A GENERAL PAY INCREASE IN THREE YEARS, ARE THOSE EQUITY ADJUSTMENTS IN SEVEN YEARS? WE KNOW WE CANNOT DO IT ALL AT ONE TIME. SO WE ARE MAKING ADJUSTMENTS WITHIN WITHIN OUR FISCAL REALITY AND PRIORITIZING TARGETED AREAS SO THAT WE CAN ADDRESS THE CONSTRAINTS THAT WE'RE CURRENTLY EXPENDING EXPERIENCING. THIS ALSO IS A MULTI YEAR COMPENSATION PLAN. SO WHAT WE'RE PRESENTING TO YOU TONIGHT IS THE FIRST PHASE OF WHAT WE'RE LOOKING AT RELATED TO STAFF. AND IT WOULD BE FOCUSED ON ADDRESSING THE MISALIGNMENT THAT WE CURRENTLY SEE IN OUR PAY OUR PAY SPAN. AND THEN WE WOULD BE LEVERAGING OUR LAND SALE PROCEEDS. WE KNOW THAT THAT'S ONE TIME MONEY, BUT WE WOULD BE LEVERAGING THOSE LAND SALE PROCEEDS IN ORDER TO LOOK AT OUR COMPENSATION OPTIONS. SO WHAT WOULD BE THE IMPACT AND OUTCOME OF THOSE TARGETED ADJUSTMENTS? ONE, WE'D BE HELPING TO ADDRESS THAT COMPRESSION AND MARKET MISALIGNMENT THAT WE SEE, ESPECIALLY IN THOSE POSITIONS THAT GO RIGHT OUTSIDE OF THE CLASSROOM, TEACHER TO SPECIALIST, TEACHER TO ASSISTANT PRINCIPAL. IT WOULD HELP US WITH THOSE SOME OF THOSE INDIVIDUAL POSITIONS YOU HEARD FROM THIS YEAR, OUR DIAGNOSTICIANS, OUR COUNSELORS, THOSE WOULD BE ADDRESSED THERE
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AS WELL. AND WE'D BE COVERING THREE FOCUS GROUPS, OUR BUS DRIVERS AND MONITORS. WE KNOW THAT WE HAVE TO GET THE STUDENTS HERE. WE HAVE TO FILL THOSE DRIVER POSITIONS SO THAT THEY'RE ABLE TO, TO GET THE STUDENTS TO SCHOOL AND THE MONITORS WHO ARE ON THE BUS AND ASSISTING THE DRIVERS WITH GETTING THE STUDENTS TO AND FRO FROM SAFELY. IT WOULD HELP US WITH OUR TARGETED EQUITY ADJUSTMENTS BEING VIA BENCHMARKING. NOW, WHEN WE WHEN WE LOOK AT OUR COMPENSATION SCHEDULE, WHEN WE TALK ABOUT THOSE TEACHER PATHWAY POSITIONS, IT IS ALSO IMPORTANT FOR US TO KNOW THAT THAT DOES NOT ADDRESS EVERY SINGLE POSITION THAT IS IN EVERY SINGLE PAY GRADE, RIGHT? IT'S ONLY SPECIFIC POSITIONS WHERE WE ARE WAY UPSIDE DOWN AS IT RELATES TO OUR MISALIGNED RELATED TO THE MARKET. AND SO WE'D BE VERY SPECIFIC AND INTENTIONAL ABOUT THE POSITIONS THAT ARE IMPACTED AND COMMUNICATING VERY CLEARLY AND EFFECTIVELY WITH STAFF ON IF THEIR POSITION WOULD BE IMPACTED OR NOT. IT WOULD ALSO ADDRESS SOME OF THE SELECTED STIPENDS AND INCENTIVES. WE'D BE SPECIFICALLY LOOKING AT SOME OF THE STIPENDS THAT CAME OUT AS A PART OF OUR TASK STUDY, AND THEN ALSO LOOKING AT THOSE WHO ARE THAT ARE IMPORTANT FOR FORT BEND ISD THAT MAY NOT HAVE COME OUT. FOR EXAMPLE, WE SAW GREAT TRACTION AS IT RELATED TO THE IT'S A WIN STIPENDS AND SIGN ON BONUSES. SO WE'D BE LOOKING AT KEEPING SOME OF THOSE HARD TO FILL AREAS, FOR EXAMPLE, MATH, SECONDARY MATH, SECONDARY SCIENCE, FORT BEND ISD IN PREVIOUS YEARS, PRIOR TO THE. IT'S A WIN DID NOT OFFER A STIPEND FOR THOSE. WE'D BE LOOKING TO KEEP THOSE IN PLACE. SEVERAL OF OUR PARAPROFESSIONAL POSITIONS WITH SIGN ON BONUS FOR SOME OF THOSE HARD TO FILL POSITIONS LIKE OUR SELF-CONTAINED CLASSROOMS, AS WELL AS BILINGUAL AND OTHER OTHER POSITIONS, WE KNOW THAT THIS WILL BE A PARTIAL FIX. IT WOULD NOT RESTORE US TO BE AS COMPETITIVE AS WE'D LIKE TO BE, BUT IT DOES HELP US TO START FILLING IN THOSE GAPS WE LIKE WE TALKED ABOUT LAST WEEK, WE EAT AN ELEPHANT ONE BITE AT A TIME. SO YOU'LL NOTICE IN THE LAST COLUMN THE INVESTMENT AND THE OUTCOMES. LAST WEEK WHAT WE SHOWED YOU THE AMOUNT. THERE WAS $6.1 MILLION. BUT BOARD, YOU ASKED US TO LOOK AT SOME SPECIFIC THINGS. AND SO NOW THAT $6.5 MILLION WOULD ADDRESS SOME OF THOSE THINGS THAT WOULD INCLUDE THE BUS DRIVER, PERFECT ATTENDANCE. THAT WAS TO GO AWAY WITH THE IT'S A WIN TO WORK IN FORT BEND. THE 6.5 MILLION NOW HAS THAT IN THERE. IT ALSO IN THAT 6.5 MILLION. SOMEONE ASKED THE QUESTION ABOUT SUBSTITUTES THAT IS ADDRESSED IN THERE. WE LAG WAY BEHIND THE MARKET AS IT RELATES TO OUR SUBSTITUTES PAY. THAT ALSO IS ADDRESSED IN THERE AS WELL AS PARAPROFESSIONALS. YOU ASKED SPECIFICALLY ABOUT OUR PARAPROFESSIONAL STAFF AND WHAT WOULD IT COST FOR US TO INCLUDE THEM IN IN THE IN THE PLAN. AND SO THIS WOULD IT WOULD BE SPECIAL EDUCATION PARAPROFESSIONALS IN THOSE SELF-CONTAINED CLASSROOMS, AS WELL AS THOSE WHO ARE NOT IN A SPECIAL EDUCATION SETTING TO HELP US TO BE MORE COMPETITIVE IN THE MARKET. IT ALSO INCLUDES SOME OF THE SIGN ON BONUSES THAT WERE A PART OF. IT'S A WIN TO WORK IN FORT BEND. WE'VE PULLED THOSE HARD TO FILL AREAS BACK IN, AND SO $6.5 MILLION WOULD DELIVER THAT IMPROVED RECRUITMENT AND RETENTION FOR CRITICAL STAFF. IT WOULD HELP US WITH THE COMPRESSION AND INEQUITIES. WE WOULD CONTINUE WITH THAT PREDICTABLE, PHASED INVESTMENT OVER TIME, KNOWING WE CANNOT DO THIS ALL AT ONCE, AND THEN IT WOULD HELP WITH OUR STRONGER EMPLOYMENT BRAND OVER TIME. WE BELIEVE THAT PEOPLE WANT TO BE A PART OF FORT BEND ISD. WE WILL CONTINUE TO DO A BETTER JOB OF COMMUNICATING ABOUT WHAT TOTAL COMPENSATION LOOKS LIKE, AND THEN WE'LL BE BRINGING RECOMMENDATIONS TO YOU BOARD FOR CONSIDERATION AS IT RELATES TO BENEFITS AND HEALTH INSURANCE AND ALL OF THOSE THINGS AS WE WORK TO CLOSE THIS EQUITY GAP. SO AT THIS TIME, I WILL TURN IT BACK OVER TO MR. GWEN TO TALK ABOUT THE COMPENSATION RECAP. THANK YOU, KATHLEEN. AND AS WE SHARED WITH YOU LAST WEEK DURING THE BUDGET MEETING, WE HAVE INCLUDED CERTAIN COMPENSATION ELEMENTS WITHIN THE BUDGET THAT YOU HAVE BEEN THAT WE'VE BEEN REVIEWING WITH YOU. THE FIRST IS THE DIFFERENTIATED TEACHER STEP THAT WAS FUNDED THROUGH THE VA TREE. AND SO THAT WILL CONTINUE FORWARD AND WAS PART OF THE FUNDING THAT YOU HAVE SEEN. THE OTHER IS THE TEACHER AND THE STAFF RETENTION A LOT. I'M SORRY I SKIPPED ONE. THE TWO YEAR, TWO OF THE ONE TIME APPRECIATION SUPPLEMENT THAT WAS INCLUDED IN THE DISASTER PENNIES THAT IS ALSO FUNDED AND INCLUDED IN THE AMOUNT. AND WE SHARED THAT WITH YOU JUST A FEW MINUTES AGO. THE OTHER IS THE TEACHER AND STATE OUR STAFF RETENTION ALLOTMENTS THAT ARE FUNDED BY THE STATE, ALTHOUGH THOSE AMOUNTS ARE NOT INCREASING, STAFF WILL CONTINUE TO RECEIVE THOSE IN THE UPCOMING YEAR. AND THEN LASTLY, WE HAVE THE HOLD HARMLESS FOR STAFF THAT WERE IMPACTED BY CONSOLIDATIONS AND THE EFFICIENCY CHANGES THAT WE'RE MAKING. THAT IS ALSO INCLUDED. AND SO BASED ON THE BOARD FEEDBACK, AS KATHLEEN MENTIONED, WE HAVE ADJUSTED THE TARGETED COMPENSATION ADJUSTMENTS THAT SHE JUST REVIEWED, AND THE TOTAL COST IS NOW $6.5 MILLION. THAT INCLUDES $1.7 MILLION FOR BUS DRIVERS AND MONITORS, $3.8 MILLION FOR TARGETED EQUITY ADJUSTMENTS, AND $1 MILLION FOR[00:25:02]
IDENTIFIED STIPENDS, AND THE PERFECT ATTENDANCE FOR BUS DRIVERS. AND THEN ONE THING THAT I'LL SHARE, WE HAVE HAD AN AREA WHERE WE'VE HAD CONSISTENT CHALLENGES HIRING STAFF. THIS WAS BRIEFLY MENTIONED LAST WEEK. WE ARE NOW RECOMMENDING TO MOVE FORWARD NOW WITH THE BUS DRIVER AND MONITOR PAY, BECAUSE THAT'S AN AREA WHERE WE HAVE CONSISTENTLY STRUGGLED THAT WILL ALSO ALLOW US TO GO FORWARD WITH IMPLEMENTING A PORTION OF THE PAY PLAN, AS KATHLEEN MENTIONED, NOT ALL AT ONCE, BUT AT LEAST INCREMENTALLY, SO WE CAN BEGIN TO ADDRESS SOME OF THESE INCONSISTENCIES THAT WE HAVE IN OUR PAY PLAN. AND AGAIN, THE PLAN IS TO USE OUR LAND PROCEEDS, LAND SALE PROCEEDS TO DO THAT. AND I'LL SHOW YOU NOW HOW THAT LOOKS. SO JUST AS A REMINDER, THIS IS SIMILAR TO THE THE SLIDE THAT YOU SAW LAST WEEK. THE FIRST COLUMN IN BLUE REPRESENTS THE CURRENT OUTLOOK. AND IT SHOWED US AT 87 DAYS.THAT DID INCLUDE THE DIFFERENTIATED TEACHER STEP AND YEAR TWO OF THE ONE TIME SUPPLEMENT, BUT IT DOES NOT INCLUDE ANY OF THE OTHER COMPENSATION ADJUSTMENTS, NOR DOES IT INCLUDE THE USE OF LAND PROCEEDS. AND SO IN THAT PARTICULAR SCENARIO WE JUST REVIEWED EARLIER, WE WERE AT 87 DAYS. WE ALSO LOOKED AT WHAT WOULD HAPPEN IF WE WERE TO DO THE TARGETED COMPENSATION ADJUSTMENTS. LAST WEEK, WE WERE LOOKING AT $6.1 MILLION, AND THAT LEFT US AT 87 DAYS. IF WE WERE TO DO 6.5 MILLION AND HAVE $6.5 MILLION IN LAND SALES, WE WOULD STILL BE AT 87 DAYS. SO THERE WOULD BE NO ADJUSTMENT THERE. AND THEN IN SCENARIO TWO, WE LOOKED AT WHAT IF WE WERE TO DO ONLY KEEP THE DIFFERENTIATED TEACHER STEP AND THE YEAR TWO ONE TIME SUPPLEMENT THAT'S BUDGETED, BUT ANTICIPATE USING LAND SALES TO BRIDGE OUR DEFICIT, THAT WOULD BRING US TO 90 DAYS. SO $5.5 MILLION IN LAND SALE PROCEEDS WOULD ALLOW US TO MEET OUR 90 DAY OPERATING RESERVE. ONE THING I DO WANT TO REMIND YOU IS WE ARE EXPECTING ABOUT $7.5 MILLION IN LAND SALE PROCEEDS. AND SO THAT'S WHAT'S AVAILABLE FOR US TO POTENTIALLY USE THAT WOULD BE RECEIVED THIS YEAR. THE FINAL SCENARIO IS ONE WE MENTIONED LAST WEEK BUT DIDN'T SPECIFICALLY ILLUSTRATE. AND NOW WE CAN SHOW YOU WHAT THAT LOOKS LIKE. THIS INCLUDES THE DIFFERENTIATED TEACHER STEP, THE YEAR TWO WITH THE ONE TIME SUPPLEMENT, AND ADDING IN THE $1.7 MILLION FOR THE TRANSPORTATION COMPONENT THAT WE TALKED ABOUT AND DOING THAT, IF WE WERE TO USE $7.2 MILLION IN LAND SALE PROCEEDS, THAT WOULD ALLOW US TO MEET THE 90 DAYS. AND SO ALTHOUGH THAT IS ONE TIME REVENUE, WE ARE ANTICIPATING ADDITIONAL LAND SALE REVENUES BEYOND WHAT WE HAVE RECEIVED. AND SO WE WOULD BE ABLE TO FUND THAT FOR MULTIPLE YEARS AS WE CONTINUE TO MAKE ADJUSTMENTS TO THE BUDGET AND MAINTAIN THE 90 DAY OPERATING RESERVE. AND SO WHERE DID WE LAND WITH RECOMMENDATIONS OR WHERE WE LANDED WITH RECOMMENDATIONS? WE ARE NOW RECOMMENDING SCENARIO THREE, AND THAT IS TO USE PROCEEDS FROM LAND SALE PROCEEDS FROM THE LAND SALE AT $7.2 MILLION. THAT WILL ALLOW US TO MAINTAIN THE 90 DAY OPERATING RESERVE. IT WILL ALSO ALLOW US TO IMPLEMENT THE TRANSPORTATION COMPENSATION ADJUSTMENTS AND AWAIT ADDITIONAL LAND SALE PROCEEDS FOR ANY REMAINING ADJUSTMENTS. AND THEN, AS I SHARED LAST WEEK, THE BOARD DOES HAVE THE OPTION TO AMEND THE BUDGET AFTER THE BUDGET IS ADOPTED IN JUNE AND INCORPORATE ANY FUTURE ADJUSTMENTS THAT MAY BE ALLOWABLE BASED ON THE DISTRICT'S CURRENT FINANCIAL CONDITION AT THE TIME. AND SO THE REASON THAT THIS WORKS IS, FIRST, IT MAINTAINS THE 90 DAY OPERATING RESERVE. IT ALSO ENSURES THAT THE HIGHEST NEED COMPENSATION ADJUSTMENTS ARE TARGETED IMMEDIATELY, AND IT PROVIDES TIME TO EVALUATE THE 2526 YEAR END ACTUALS TO DETERMINE IF WE'RE GOING TO END BETTER THAN WHAT WE EXPECTED. AND IT ALSO ALLOWS FOR US TO REVIEW THE 2627 ENROLLMENT TO DETERMINE NEXT STEPS. AND SO JUST AS A REMINDER, WHAT DRIVES OUR REVENUE IS REVENUE IS A STUDENT ATTENDANCE AND ENROLLMENT. AND SO IF ENROLLMENT MATERIALIZES AS EXPECTED, THEN YOU WOULD BE ABLE TO POTENTIALLY MOVE FORWARD WITH THESE ADJUSTMENTS. THE TRADE OFFS ON THIS ARE IS THAT WE ARE NOT TARGETING ALL THE COMPENSATION ADJUSTMENTS TO BE EFFECTIVE JULY 1ST. IT WOULD ONLY BE THE BUS DRIVERS. AND SO FOR THOSE OTHER POSITIONS THAT ARE BEING LOOKED AT FOR REVIEW, WE WOULD NOT BE ABLE TO ADVERTISE THE NEW RATES FOR THOSE UNTIL THOSE NEW RATES GO INTO EFFECT. HOWEVER, FOR BUS DRIVERS, IF THE BOARD WERE TO MOVE FORWARD WITH THIS PROPOSAL, WE WOULD BE ABLE TO ADVERTISE THAT, ENSURING THAT AT THE START OF SCHOOL, THOSE DRIVERS ARE NOW BEING PAID THE NEW RATES. AND THEN LASTLY, JUST AS THE OUTCOME ON THIS WOULD BE, AS WE'VE SAID, WE MEET THE 90 DAY OPERATING RESERVE REQUIREMENT AS AS REQUIRED AND THE BOARD'S FISCAL AND BUDGETARY STRATEGY. AND WE WOULD HAVE SOME COMPENSATION ADJUSTMENTS THAT WOULD OCCUR IMMEDIATELY. BUT THE REMAINDERS COULD OCCUR IN 2627, DEPENDING ON THE ULTIMATE FINANCIAL POSITION OF THE DISTRICT. WE'RE NOW GOING TO MOVE INTO THE DISCUSSION THAT WHERE WE HAVE SOME UNCERTAINTY ON OUR BUDGET, AND THAT IS WITH THE EDUCATION FREEDOM ACCOUNTS. WE SHARED
[00:30:05]
WITH YOU INFORMATION EARLIER THIS. I THINK IT WAS IN THE APRIL TIME FRAME HOW THAT WAS PROGRESSING. AND SO WE HAVE MORE INFORMATION ON THAT NOW, BUT STILL NOT EVERYTHING WE NEED TO KNOW. AND SO SINCE THAT LAST UPDATE, THE APPLICATION WINDOW HAS CLOSED AND PARENTS HAVE STARTED TO RECEIVE NOTIFICATION OF WHETHER OR NOT THEIR CHILD WILL RECEIVE A VOUCHER. AND SO THE STATE ALLOCATED $1 BILLION FOR YEAR ONE OF THE PROGRAM. THEY HAD OVER 274,000 APPLICATIONS THAT CAME IN. AND SO THEY DID NOT HAVE OR THEY DO NOT HAVE ENOUGH FUNDING TO FULLY FUND ALL OF THOSE APPLICATIONS. SO WHAT WE KNOW LOCALLY, AS WE HAD OVER 8400 PEOPLE THAT RESIDE WITHIN FORT BEND ISD, APPLY FOR VOUCHERS. AND OF THOSE, ABOUT 2500 ARE CURRENT FORT BEND ISD STUDENTS. AND SO THESE WOULD BE THE ONES SPECIFICALLY THAT WE COULD LOSE TO ENROLLMENT. WE BUDGETED FOR THE LOSS OF ABOUT 700 STUDENTS DUE TO THE VOUCHERS. AND WHAT I'LL SAY IS THAT 2500 ARE NOT ONES THAT HAVE BEEN AWARDED, BUT THAT HAVE APPLIED FOR. AND SO UNFORTUNATELY, THIS IS ONE OF THOSE CASES, AS WE DISCUSSED LAST WEEK, THE STATE HAS NOT PROVIDED INFORMATION OF HOW MANY OF THOSE HAVE RECEIVED IT OR WHAT THEIR STATUS IS. AND SO IT'S STILL AN UNKNOWN FOR US. BUT WE DO KNOW AT THE BOTTOM LINE, THE STATE DOES NOT HAVE ENOUGH FUNDING TO FUND ALL OF THEM. AND SO SOME OF THESE INEVITABLY WILL NOT BE LEAVING THE DISTRICT BECAUSE THEY DON'T RECEIVE THE FUNDS. BUT AGAIN, WE HAVE ACCOUNTED FOR THE LOSS OF STUDENTS DUE TO VOUCHERS IN OUR PLANNING THAT YOU'VE SEEN.THE NEXT UNCERTAINTY THAT WE MENTIONED WAS THE CHANGE IN SPECIAL EDUCATION FUNDING. AND SO THAT'S BASED ON THE SHIFT IN THE MODELS THAT THEY WILL BE USING IN 2025. THE STATE CHANGED THE LAW, AND IT'S SHIFTING THE FUNDING FROM THE INSTRUCTIONAL ARRANGEMENT TO AN INTENSITY OF SERVICE MODEL. THE MODEL IS MEANT TO CORRECT THE FACT THAT HISTORICALLY, FUNDING FOR SPED STUDENTS DID NOT TAKE INTO ACCOUNT THE COST OF SERVICE REQUIRED FOR EACH SPED STUDENT. AND SO ALTHOUGH THE NEW MODEL IS GOING TO TAKE THAT INTO ACCOUNT AND THE INTENSITY OF SERVICE EACH STUDENT RECEIVES, THE STUDENT, THE STATE HAS SHARED THAT DISTRICTS WON'T KNOW WHAT THE FUNDING THEY RECEIVE WILL BE UNTIL SEPTEMBER OF 2027. AND SO WE'RE LOOKING AT OVER A YEAR FROM NOW BEFORE WE WILL KNOW WHAT WE ACTUALLY RECEIVE. PART OF THE REASON FOR THAT IS THEY'RE LOOKING AT EACH INDIVIDUAL STUDENT AND THEIR INDIVIDUAL EDUCATION PLAN, AND HOW IT DEFINES THE LEVEL OF SERVICE THAT THEY RECEIVE. AND SO I'LL SHARE WITH YOU NOW WHAT'S INVOLVED IN ASSIGNING THE TIER OF INTENSITY. I'M NOT GOING TO GO OVER THIS IN GREAT DETAIL, BECAUSE WHAT I'LL SAY HERE IS THE STATE HAS NOT FULLY RELEASED HOW THIS IS GOING TO BE FUNDED. SO IF YOU'RE HOPING FOR A SIMPLE AND STRAIGHTFORWARD WAY TO DETERMINE THE INTENSITY OF SERVICE FOR EACH STUDENT, UNFORTUNATELY YOU'RE GOING TO BE DISAPPOINTED. AND SO T HAS CREATED FIVE DOMAINS THAT THEY ARE GOING TO USE. AND EACH OF THOSE DOMAINS HAVE FOUR FACTORS ASSOCIATED WITH THEM. AND SO IN TOTAL WE'RE LOOKING AT 20 INDIVIDUAL METRICS THAT THE STATE WILL REVIEW IN ORDER TO DETERMINE HOW THEY'RE GOING TO FUND THE STUDENTS. EACH OF THOSE ARE GOING TO RECEIVE A SCALE, A SCORE OF 0 TO 3. AND EACH OF THOSE THE WITH THREE BEING WHERE THEY HAVE THE MOST SIGNIFICANT SERVICES THAT THEY RECEIVE. AND SO THE SCORING SYSTEM IS REQUIRED TO BE COMPLETED FOR EACH STUDENT TO DETERMINE THE LEVEL OF FUNDING A DISTRICT WILL RECEIVE. AND SO THIS WILL BE HAPPENING DURING THE DURATION OF THE SCHOOL YEAR. NOW, I WANT TO REMIND YOU THAT ONE OF THE CAVEATS THAT THE STATE RELEASED WITH THIS NEW FUNDING IS THAT FOR THE 2627 SCHOOL YEAR, NO SCHOOL DISTRICT WILL RECEIVE LESS FUNDING THAN THEY RECEIVED IN THE CURRENT SCHOOL YEAR. AND SO WE ARE GUARANTEED TO RECEIVE AT LEAST THE SAME AMOUNT OF FUNDING GOING INTO NEXT YEAR THAT WE RECEIVED THIS YEAR. AT THE SAME TIME, AS WE BEGIN COMPLETING THE THE WHAT SERVICES EACH STUDENT RECEIVED, WE WILL RECEIVE THAT FUNDING. AND SO IT'S A MODEL WHERE YOU MAY RECEIVE MORE FUNDING NEXT YEAR BECAUSE YOU'RE FULLY ENVELOPED IN THE NEW MODEL. BUT AGAIN, YOU'RE GUARANTEED TO RECEIVE AT LEAST WHAT YOU RECEIVED LAST YEAR. THIS IS A SAMPLE DATA FROM TEA THAT SHOWS HOW THE FUNDING FOR STUDENT COULD CHANGE BASED ON THE NEW INTENSITY OF SERVICE MODEL. AND IN THIS EXAMPLE, THEY'RE SHOWING THE SAME STUDENT COULD RECEIVE ABOUT $2,388 MORE THAN UNDER THE OLD MODEL. SO I'M NOT GOING TO SPEND A LOT OF TIME EXPLAINING THIS SLIDE. AND HERE'S WHY. IF YOU TAKE A LOOK AT THE ASTERISK AT THE BOTTOM OF THIS SLIDE, IT SAYS EVEN. AND SO THIS IS EVEN WITH THEIR OWN EXAMPLE, THEY ARE DISCLAIMING THE FACT THAT THEY HAVE NOT DETERMINED THE WEIGHTS AND THAT THE SERVICE GROUP DOLLAR AMOUNTS COULD ALSO CHANGE. SO THIS IS JUST A PAPER
[00:35:05]
EXERCISE THAT THEY'VE DONE TO SHOW US THAT THE FUNDING IS CHANGING, BUT IT DOESN'T HAVE ANY SCIENTIFIC BASIS, EVEN BASED ON INFORMATION THAT THEY ARE SHARING WITH SCHOOL DISTRICTS. AND SO WHAT I WOULD SAY IS THAT I WISH THAT WE COULD PROVIDE TO YOU ALL MORE CERTAINTY AROUND THAT, AND WE WOULD CERTAINLY LIKE MORE CERTAINTY. BUT UNFORTUNATELY, AT THIS STAGE, THIS IS THE LIMIT OF THE INFORMATION WE HAVE AVAILABLE. AND SO THE REASON THAT WE WANT YOU TO BE AWARE OF THIS IS THE DISTRICT COULD RECEIVE MORE MONEY NEXT YEAR BASED ON THIS INTENSITY OF SERVICE MODEL, BUT IT COULD ALSO RECEIVE LESS FUNDING. IT JUST DEPENDS ON THE NEEDS OF EACH INDIVIDUAL STUDENT. AND SO THAT'S SOMETHING, AGAIN, THAT WILL OCCUR THROUGHOUT THE SCHOOL YEAR AND IN SEPTEMBER OF 2027, THAT WILL BE WHEN THERE'S SOME SENSE OF FINALITY TO HOW THOSE STUDENTS WILL BE FUNDED AND THE AMOUNTS THAT THE DISTRICT WILL RECEIVE. WE ALSO WANT TO SHARE WITH YOU, HISTORICALLY, WHAT THE SPECIAL EDUCATION FUNDING GAP HAS BEEN. ON AN AVERAGE, THE DISTRICT IS SPENDING ABOUT $30 MILLION MORE A YEAR ON THE SERVICES THAT WE PROVIDE THAN WHAT WE ACTUALLY RECEIVE FROM THE STATE AND FEDERAL GOVERNMENT. SO THIS IS INCLUSIVE OF BOTH LOCAL, STATE AND FEDERAL FUNDING. AND WHEN WE LOOK AT THAT ON AN ANNUAL BASIS, AGAIN, IT'S ABOUT A $30 MILLION AVERAGE. AND SO OVER THE LAST I'M SORRY, LAST SCHOOL YEAR, WE WERE AT $30.9 MILLION, BUT IT HAS BEEN AS HIGH AS $36 MILLION. AND SO THIS SHOWS THAT WE ARE USING LOCAL RESOURCES THAT WE HAVE IN ORDER TO PROVIDE SERVICES TO SPECIAL EDUCATION STUDENTS, BECAUSE THAT IS SOMETHING THAT BY LAW, WE CANNOT WE CAN'T SAY WE DON'T HAVE ENOUGH MONEY TO DO IT, REGARDLESS OF WHETHER OR NOT WE'RE RECEIVING THE FUNDING, WE ARE REQUIRED TO PROVIDE SERVICES TO THOSE STUDENTS, AND THE DISTRICT DOES MEET THAT OBLIGATION. BUT IN DOING SO, WE'RE HAVING TO SPEND LOCAL FUNDS IN ORDER TO DO THAT, TO MAKE SURE THAT THOSE STUDENTS RECEIVE THEIR REQUIRED SERVICES.WHAT I'LL CLOSE WITH IS I JUST MENTIONED THERE ARE SOME UNCERTAINTY AROUND THIS, AND WE'VE TALKED ABOUT POTENTIALLY USING ONE TIME FUNDING TO MOVE FORWARD WITH SOME OF THE PROPOSALS IN THE BUDGET. AND I WANT TO SHARE WITH YOU SOME OF THE BEST PRACTICES THAT WE HAVE FOR LONG TERM FISCAL SUSTAINABILITY. FIRST, ON THE REVENUE SIDE, THERE ARE TWO AREAS WHERE THERE COULD BE IMPROVEMENTS MADE. THE FIRST, WE TALKED TO YOU ABOUT LAST WEEK, AND THAT IS AN IMPROVEMENT IN STUDENT ATTENDANCE RATE. THE DISTRICT IS BUDGETING FOR 95%, BUT HISTORICALLY WE'VE SEEN RATES AS HIGH AS 98%. AND AS A REMINDER, EACH 1% IN ATTENDANCE INCREASE IS ABOUT $6 MILLION. AND SO IF THE DISTRICT WERE TO GET TO, SAY, A 97% ATTENDANCE RATE, THAT WOULD GENERATE AN ADDITIONAL $12 MILLION FOR THE DISTRICT. THE OTHER IS THE FINAL DETERMINATION ON THE SPEND INTENSITY WEIGHTS. AGAIN, WE JUST WALKED THROUGH THIS. THIS COULD RESULT IN AN ADDITIONAL REVENUE STREAM FOR THE DISTRICT. AND WHEN I SAY THAT IT'S GOING TO OFFSET THAT DEFICIT THAT WE CURRENTLY HAVE.
SO WHEN WE SAY NEW FUNDING, IT'S NEW MONEY COMING IN, BUT IT'S MONEY THAT'S ALSO ALREADY BEING SPENT. AND THEN THE OTHER SIDE IS ON THE EXPENDITURES, WHERE WE HAVE MUCH MORE CONTROL LOCALLY ON HOW THAT OCCURS. AND SO THE FIRST THING THAT WE WOULD LOOK TO GOING INTO THE UPCOMING YEAR AND FUTURE YEARS IS TO CONTINUE TO EVALUATE ALL VACANT POSITIONS ON AN ONGOING BASIS AND ENSURE THAT THEY'RE ALIGNED WITH WHAT OUR EXPECTATIONS ARE, AS WELL AS THE NEEDS OF THE DISTRICT. THE SECOND IS CONDUCTING PROGRAM EVALUATIONS TO DETERMINE THE EFFECTIVENESS AND EFFICIENCY OF OUR EXISTING PROGRAMS, AND MAKING SURE WE'RE GETTING THE BEST BANG FOR THE BUCK. AND IF THOSE AREN'T HAPPY, IF THAT'S NOT HAPPENING, THERE'S AN OPPORTUNITY TO SUNSET THOSE PROGRAMS AND REALIZE COST SAVINGS THERE, REVIEW STAFF TRAININGS TO ENSURE THAT THEY'RE NOT OCCURRING UNNECESSARILY OUT OF STATE, AND THAT WE'RE GETTING BANG FOR THE BUCK ON THOSE, THAT THEY'RE ALIGNED WITH WHAT WE NEED TO BE DOING, CURTAILING AFTER HOURS FACILITY USAGE, AND ENSURING THAT WE'RE BEING AS EFFICIENT AS WE CAN WITH OUR FACILITIES. AND THEN FINALLY LOOKING AT EQUIPMENT REPLACEMENT PURCHASES TO MAKE SURE THAT AS THOSE ARE OCCURRING, THEY'RE ACTUALLY NEEDED AND THAT WHATEVER WE'RE PURCHASING IS BEING UTILIZED ON AN ONGOING BASIS. AND SO THESE ARE SOME OF THE STEPS THAT WE'LL BE USING ON AN ONGOING BASIS TO ENSURE THAT AS WE GO FORWARD AND BRING FORWARD FUTURE BUDGETS, THAT, AGAIN, THAT THEY ARE MOVING TOWARDS BEING BALANCED, AS WELL AS MEETING THE 90 DAY OPERATING RESERVE AS REQUIRED BY BOARD POLICY. NEXT, WE'LL WALK THROUGH THE DEBT SERVICE FUND, AS WELL AS THE POTENTIAL TAX RATE, AND I'LL QUICKLY WALK THROUGH THIS. THERE ARE NO CHANGES TO THIS FROM WHAT YOU'VE SEEN LAST WEEK. AND AS A REMINDER, THIS DOES INCLUDE THE ADDITIONAL OF ONE PENNY TO FUND THE DEBT THAT IS NOW BEING ISSUED FOR THE COMPLETION OF COLEMAN MIDDLE SCHOOL, THE ALDRIDGE AS WELL AS MISSION ELEMENTARIES THAT HAVE BEEN COMPLETED. AND THEN WE'RE ABOUT HALFWAY THROUGH THE CONSTRUCTION OF CLEMENTS HIGH SCHOOL. AND SO THE 23 BOND DID INCLUDE A PROVISION TO ADD ONE
[00:40:03]
ADDITIONAL PENNY. AND WE'RE NOW RECOMMENDING THAT THAT PENNY BE ENACTED FOR THE DEBT SERVICE ASSOCIATED WITH THAT. WE ALSO HAD A SUCCESSFUL BOND TRANSACTION LAST WEEK, AND WE'RE RECEIVING UPDATED NUMBERS FROM OUR FINANCIAL ADVISOR. ONCE WE'VE RECEIVED THAT, THE PROPOSED BUDGET FOR 2627 WILL BE UPDATED. SO IN JUNE, YOU'LL SEE WHAT THOSE REVISED NUMBERS ARE. IT'S NOT GOING TO MATERIALLY CHANGE THE OUTLOOK, BUT THEY WILL BE ADJUSTED BASED ON THAT TRANSACTION. SO WE WANTED TO MAKE YOU AWARE. YOU WILL SEE CHANGES THERE. AND NOW WE'LL WALK THROUGH WHAT THE IMPACT TO THE TAX RATE WILL BE WITH THAT ONE PENNY INCLUDED.SO AS A AS A REMINDER, THERE ARE TWO COMPONENTS TO OUR TAX RATE, THE MAINTENANCE AND OPERATIONS COMPONENT AND THE INCOME OR INTEREST AND SINKING COMPONENT, THE RATE MAINTENANCE AND OPERATION FUNDS, THE OPERATIONS AND THE GENERAL FUND. AND THAT INCLUDED THE DISASTER PENNIES THAT WE DID IN THE CURRENT YEAR. SO OUR CURRENT TAX RATE ON THE MAINTENANCE AND OPERATIONS SIDE IS AT 79.6 $0.09, AND THE INTEREST IN SINKING COMPONENT WAS $0.26 FOR A TOTAL TAX RATE OF $1 AND $5 AND 5.6 $0.09. THAT'S OUR CURRENT TAX RATE MOVING TO NEXT YEAR. THE SEVEN DISASTER PENNIES WILL EXPIRE, AND SO THE MAINTENANCE AND OPERATION PORTION OF THE TAX RATE GOES TO 72.6 $0.09, A SEVEN CENT REDUCTION. AND THE INTEREST IN SINKING COMPONENT WOULD GO TO $0.27, A $0.01 INCREASE. SO OUR TOTAL TAX RATE WILL GO DOWN BY $0.06 TO 99.6 $0.09. AND WHAT THAT LOOKS LIKE FOR A RESIDENT, BASED ON THE LATEST VALUATIONS THAT WE HAVE. AND SO AS A REMINDER HERE WE WILL NOT RECEIVE THE FINAL CERTIFIED TAX ROLL UNTIL JULY. BUT WE HAVE RECEIVED THE PRELIMINARY CERTIFIED TAX ROLL IN APRIL.
AND SO BASED ON THAT INFORMATION, THE AVERAGE HOME VALUE IN FORT BEND ISD IS INCREASING BY ABOUT $8,700. AND WE HAVE A HOMESTEAD EXEMPTION THAT THE STATE PROVIDES OF 140 000. AND SO THE AVERAGE HOME TAXABLE VALUE IS GOING FROM ABOUT 285,000 TO ABOUT $294,000.
AGAIN, ABOUT AN $8,700 INCREASE, WITH A LOWER TAX RATE OF 99.6 $0.09. THAT WOULD RESULT IN A TOTAL TAX BILL FOR THE FORT BEND ISD OF ABOUT 20, JUST UNDER $3,000. AT 2929, THAT IS AN $84 REDUCTION FROM THE CURRENT TAX BILL THAT THEY PAID THIS YEAR AS A RESULT OF THE DISASTER PENNIES BEING IN EFFECT. AND SO THAT WORKS OUT TO ABOUT A $7 SAVINGS PER MONTH THAT THEY WOULD RECEIVE. WE DO HAVE A COMPARISON OF WHAT OUR TAX RATE LOOKS LIKE WHEN WE COMPARE OURSELVES TO LOCAL DISTRICTS. SO AT THE DOLLAR AND $0.06, WE'RE ABOUT $0.03 LOWER THAN SEAFAIR, $0.06 LOWER THAN KATY AND $0.09 LOWER THAN THAN LAMAR. AND SO WHEN WE LOOK AT THE POTENTIAL FOR NEXT YEAR, AND I DO WANT TO CAVEAT THIS INFORMATION. SO LIKE I SAID, WE HAVE JUST RECEIVED THE PRELIMINARY ROLL. WE'LL RECEIVE THE CERTIFIED ROLL IN JULY. SO THIS IS LOOKING AT OUR TAX RATE BASED ON WHERE WE EXPECT IT TO END AT 99.6 $0.09. BUT FOR THOSE OTHER DISTRICTS WE DON'T HAVE THAT INFORMATION. SO THIS ISN'T A TRUE APPLES TO APPLES COMPARISON. BUT IT DOES SHOW YOU THAT WHEN WE GO BACK DOWN TO THE 99.6 $0.09 WILL BE ABOUT $0.09 LOWER THAN SEAFAIR, $0.12 LOWER THAN KATY AND $0.15 LOWER THAN LAMAR. AND SO I ALSO WANT TO OFFER SOME EDITORIAL COMMENTARY ON THIS. SOMETIMES WE ASK, WHY ARE OTHER DISTRICTS ABLE TO DO THINGS THAT FORT BEND ISD IS NOT ABLE TO DO? ONE OF THE REASONS, IN SOME CASES IS THE TAX RATE. IT'S NOT THE SOLE REASON, BUT IT IS ONE REASON THAT THEY HAVE SOMETIMES MORE FLEXIBILITY THAN WE DO. AND SO IN OUR CASE, LIKE YOU CAN SEE, WE DO HAVE A MUCH LOWER TAX RATE THAN WHAT OUR PEER DISTRICTS DO. AND IN SOME CASES, THEY'RE AHEAD OF US IN AREAS LIKE COMPENSATION AND PROGRAMS. AND PART OF THAT IS BECAUSE THEY HAVE ADDITIONAL PENNIES ON THEIR TAX RATE THAT ALLOWS THEM THAT FLEXIBILITY. THE FINAL ITEM THAT WE HAVE THIS EVENING IS THE CHILD NUTRITION FUND. AND AGAIN, FROM WHAT YOU'VE SEEN LAST TIME, THERE ARE NO CHANGES HERE. AND IF YOU'RE ASKING WHY ARE WE REVIEWING THIS? AGAIN, ONE OF THE REASONS IS THE CHILD NUTRITION FUND, DEBT SERVICE FUND AND GENERAL FUNDS ARE THE THREE OPERATING FUNDS THE BOARD IS REQUIRED TO ADOPT. SO WE WANT TO MAKE SURE YOU HAVE THE INFORMATION. AS A REMINDER, THIS. WE ARE NOT INCREASING MILK PRICES FOR THE NATIONAL SCHOOL LUNCH PROGRAM, ALTHOUGH THERE ARE SOME A LA CARTE SNACK PRICES THAT WILL BE INCREASING NEXT YEAR, THE FUND WILL HAVE 168 DAYS IN ITS OPERATING FUND RESERVE AT THE END OF THE 2627 SCHOOL YEAR THAT IT MEETS THE TARGET THAT THE DISTRICT HAS OF AT LEAST HAVING 90 DAYS, BUT IS
[00:45:01]
BELOW THE AMOUNT THAT WOULD TRIGGER A USDA SPIN DOWN PLAN, AND THAT CANNOT EXCEED 180 DAYS.AND THAT CONCLUDES OURAND WE'LLE HAPPY TO ANSWER QUESTIONS THAT THE BOARD HAS. THANK YOU, MR. GWEN. WE'LL TAKE QUESTIONS FROM THE TRUSTEES NOW, MISS HEYLIGER. THANK YOU. I JUST WANTED TO FOLLOW UP BASED ON OUR WORKSHOP LAST WEEK AND WHAT YOU PRESENTED TONIGHT. I HAVE A COUPLE QUESTIONS. ONE IS THE $7.2 MILLION IN LAND THAT WE'RE GOING TO USE, LAND SALES THAT WE'RE GOING TO USE THIS YEAR. I JUST JUST KIND OF REITERATING WHAT I SHARED LAST WEEK IS THAT THOSE DOLLARS WILL THEN HOW DO THEY, HOW DO THEY IMPACT THEN FOR THE OUTER YEARS? BECAUSE ONE OF THE THINGS THAT YOU SAID LAST YEAR, EXCUSE ME, LAST MEETING WAS THAT BASED ON HOW WE BUDGETED IN THE PAST, IT HAD A LONG LASTING IMPACT TO OUR CURRENT BUDGETS MOVING FORWARD.
SO BY UTILIZING THE THE LAND, WHICH I THINK IS A GOOD, GOOD IDEA, PUT US IN A GOOD POSITION.
BUT THIS $7.2 MILLION WILL STILL REMAIN AS A DEFICIT IN THE BUDGET FOR PRECEDING YEARS.
IS THAT CORRECT? THAT IS CORRECT. HOWEVER, THERE IS ANOTHER PROPERTY THAT IS STILL PENDING CLOSURE THAT WOULD ALLOW THAT DEFICIT TO BE FUNDED OVER ABOUT THREE YEARS. AND SO IT GIVES YOU SOME TIME TO MAKE OTHER ADJUSTMENTS TO NOT HAVE THE SAME IMPACT AS SOME OF THOSE PRIOR DECISIONS THAT WE'VE MADE HAD. OKAY. THANK YOU. AND THEN I KNOW WE TALKED A LITTLE BIT ABOUT THIS LAST WEEK. I KNOW DOCTOR GILMAN, YOU KNOW, THANKED THE PARENTS WHO WHO BROUGHT THEIR STUDENTS TO, TO CLASS EVERY DAY FOR THE REMAINING 5%. DO WE KNOW WHERE THAT ATTENDANCE GAP IS? IS IT ACROSS THE BOARD? ARE WE SEEING IT HEAVILY IN A CERTAIN LEVEL, WHETHER IT'S HIGH SCHOOL, ELEMENTARY, WHERE ARE WE SEEING THIS 5% GAP? SO IT IS ACROSS THE BOARD AND I'LL MAKE A PUBLIC SERVICE ANNOUNCEMENT. NOW, ONE OF THE THINGS THAT THIS DISTRICT HAS IS A GREAT DEAL OF DIVERSITY. AND WE HAVE A LOT OF PARENTS THAT TRAVEL DURING THE HOLIDAY SEASON. WHAT WE HAVE HISTORICALLY EXPERIENCED IS BEFORE A HOLIDAY STARTS AND AFTER IT ENDS, THERE ARE CERTAIN PARENTS THAT WILL, AND I SAY WITHDRAWAL. THEY'RE NOT TRULY WITHDRAWING THEM, BUT THEY'RE TAKING THEIR STUDENTS WITH THEM ON THOSE TRIPS, AND THAT'S IMPACTING OUR ATTENDANCE. IT ALSO HAPPENS WHEN, AS A PARENT, YOU MAY DECIDE THAT YOU WANT TO TAKE YOUR CHILD TO DISNEYLAND AND YOU GO DURING AN OFF PEAK TIME SO THAT YOU'RE PULLING THEM OUT IN THE MIDDLE OF THE WEEK. THOSE ARE THE TYPES OF THINGS THAT WE HEAR FROM PRINCIPLES THAT ARE IMPACTING US. SO IN SHORT, IS IT A SPECIFIC CAMPUS? YES. WE HAVE SOME CAMPUSES THAT HAVE LOWER ATTENDANCE, BUT BY AND LARGE, THIS IS MORE OF A SYSTEM PROBLEM THAT WE'RE SEEING, NOT ISOLATED TO ONE INDIVIDUAL CAMPUS. AND SO IF WE COULD ENCOURAGE PARENTS TO PERHAPS FOLLOW AND ALIGN THEIR TRIPS WITH A CALENDAR, WHICH MAY NOT NECESSARILY BE IDEAL, BUT FROM A FUNDING PERSPECTIVE, IT'S IMPACTING US AS A DISTRICT. AND SO REALLY, IT'S IF YOUR STUDENT IS NOT SICK AND CAN BE HERE, IT IS BEST FINANCIALLY FOR THE DISTRICT, FOR THE STUDENT TO BE HERE. AND I'M SAYING THAT AS A BEAN COUNTER. BUT WE ALSO KNOW ACADEMICALLY, IT'S ALSO VERY IMPORTANT TO BE HERE DURING SCHEDULED SCHOOL TIME. THANK YOU. SO I WASN'T EXPECTING A SPECIFIC CAMPUS. I WAS REALLY TALKING ABOUT ELEMENTARY, MIDDLE SCHOOL OR HIGH SCHOOL WHERE WE SEEING, YOU KNOW, THE DIFFERENCE IN THE DIFFERENT LEVELS. BUT YOU'RE SAYING REGARDLESS OF WHAT LEVEL IT IS, IT'S JUST KIND OF ACROSS THE BOARD. YES. THANK YOU FOR THAT ANSWER. AND THEN MY LAST QUESTION THAT THAT I HAVE IS YOU GAVE APPROXIMATELY 700 STUDENTS THAT MIGHT TAKE THE VOUCHER. OPPORTUNITY, WHICH LEADS US A DIFFERENCE OF 18, 13, 1800 STUDENTS POSSIBLY. WHERE DO WHERE DO YOU GET THE 700 FROM? IS THAT A IS THAT MORE OF A TREND THAT YOU'VE SEEN OVER THE LAST FEW YEARS? WHERE DOES THE APPROXIMATE 700 COME FROM VERSUS DOING, LET'S SAY, 1500? JUST JUST SO WE LOOKED AT WHAT TYPE OF ENROLLMENT DECLINES HAVE WE SEEN HISTORICALLY? AND REALLY THERE ARE ONLY TWO THAT HAVE STOOD OUT WHERE WE HAVE SEEN A DRAMATIC DECREASE IN OUR STUDENT POPULATION. AND THAT WAS DURING COVID. AND SO WHAT WE KNOW IS THAT THE PERCENTAGE OF STUDENTS WHO ARE ABLE TO ACCEPT, OR THAT THE STATE IS ABLE TO FUND THROUGH THE VOUCHER PROGRAM IS, IS FINITE.
THEY CAN'T THEY CAN'T DO THEM ALL. AND SO 1% WAS THE NUMBER THAT WE LANDED ON OF WHAT WE THINK MIGHT LEAVE. IT'S NOT BASED ON ANY TREND BECAUSE THE STATE HASN'T EVER HAD A PROGRAM LIKE THIS. BUT WE WERE LOOKING AT IT FROM A PERSPECTIVE OF IF 1% WERE TO LEAVE, AND THAT'S THE NUMBER THAT WE ULTIMATELY ENDED UP USING, THIS IS WHAT OUR COSTS WOULD BE BASED ON WHAT'S AVAILABLE FUNDING WISE FROM THE STATE VERSUS WHAT WHO WON'T GET IT. THAT PERCENTAGE
[00:50:01]
IS PRETTY CLOSELY ALIGNED TO WHAT THE STATE CAN FUND. THANK YOU SO MUCH. THANK YOU MISS.MISS VICKI. I JUST ONE I BELIEVE IT WAS AT LAST WEEK'S MEETING. I JUST WANTED TO REITERATE, I DON'T THINK IT WAS MENTIONED TONIGHT. IF OUR ATTENDANCE RATE WENT UP 1%, HOW MANY MORE? HOW MUCH MORE MONEY WOULD WE BE? ABOUT $6 MILLION. ALL RIGHT. AND THANK YOU. I JUST WANTED TO MAKE SURE I DIDN'T HEAR THAT TONIGHT. ALSO ON THE THE FOR THE I'M NOW I'M GOING TO THE THE TEA THE TIER OF INTENSITY WHEN FOR THE SPECIAL EDUCATION FUNDING THERE THEY SAID WE NEED TO WE'RE GOING TO BE SCORING ON THE THREE POINT SCALE FOR EACH FACTOR. DOES THAT. IS THAT HAPPENING DURING. AND THAT'S ON PAGE 19. IS THAT HAPPENING DURING THE REGULAR SCHEDULED IEPS OR ANOTHER TIME? AND ARE. IS THE STATE PAYING FOR ANY OF THAT? SO THAT'S LET'S START WITH THE IS THE STATE PAYING FOR ANY OF THAT? THE STATE DID ADD AN ALLOTMENT FOR THE INITIAL EVALUATION OF STUDENTS. AND SO THEY ARE PARTIALLY COVERING THE COST OF THOSE ASSESSMENTS. THE OTHER ON THIS COMPONENT OF IT IS GOING TO BE DONE AFTER THE FACT. SO WE'RE TAKING THE INFORMATION FROM THE IEP AND ASSIGNING THE SCORE.
AND SO IT WON'T BE DONE NECESSARILY THROUGH THE IEP. BUT IT'S THE OUTCOME OF IT. AND SO WHAT DOES THIS LOOK LIKE RIGHT NOW. WELL THEY'VE JUST RELEASED THE GUIDANCE. SO WE CAN'T SAY DEFINITIVELY HERE'S HOW IT'S GOING TO LOOK IN FORT BEND ISD. WE JUST KNOW IT'S CHANGING AND WE'LL BE RESPONDING TO THAT. AND ONE OF THE WAYS THAT WE WANT TO TRY TO ENSURE CONTINUITY IN THE MOST ACCURATE INFORMATION IS THAT IF WE ARE IN AN ARD MEETING, WE COULD INPUT THIS INFORMATION TO MAKE SURE THAT IT'S ALIGNED. SO WE'RE STILL WORKING THROUGH WAITING FOR T A TO RELEASE THE DOCUMENT TO US SO THAT WE COULD SEE IT. THE MOST IDEAL WAY TO ENSURE THAT WE HAVE THE MOST ACCURATE IS TO MAKE SURE IT'S HAPPENING DURING THE ART PROCESS. THANK YOU, MISS MISS HANNON. YES, THANK YOU, MISS BROWN AND MR. GWINN FOR THE INFORMATION. I FIRST WANT TO THANK YOU FOR THE COMPENSATION SALARY INFORMATION THAT YOU GAVE US, BECAUSE I DO THINK THAT'S VERY IMPORTANT. AND I'M SURE THAT YOU DO THAT. LIKE YOU SAID, DURING THE HIRING PROCESS, YOU DON'T HAVE TO ANSWER THIS NOW. AND AS I READ THROUGH THIS, I DIDN'T REALLY THINK ABOUT IT. BUT IN OUR COMPENSATION STUDY, I WOULD BE CURIOUS. DID, DID THAT AUDIT CONSIDER THE FULL COMPENSATION PACKAGE, NOT JUST THE SALARY? DID THEY DID THEY USE BENEFITS AS A WEIGHT? WHEN THEY LOOKED AT HOW WE FARE IN THE MARKET? IF YOU DON'T KNOW THAT, YOU DON'T HAVE TO ANSWER THAT. YES. THANK YOU FOR THAT, MISS HANNON. NO, MA'AM.
BENEFITS. THE HEALTH INSURANCE PREMIUMS ARE NOT A PART OF WHAT TASB LOOKS AT. THEY DON'T HAVE THAT INFORMATION FROM EVERY DISTRICT TO INCLUDE THAT IN THEIR COMPARISON. OKAY. BUT ANYWAY, THANK YOU. AND IF I, I, I BELIEVE YOU SAID IT WAS MR. SHOW THAT ASKED THAT. SO I ACTUALLY THINK THAT'S IMPORTANT BECAUSE YOUR BENEFITS LARGELY ACROSS WHERE PEOPLE WORK IN PRIVATE COMPANIES, THE COMPENSATION IS IMPORTANT. AND I THINK IT'S IMPORTANT HERE. SO I KIND OF WANT TO JUST JUMP FORWARD AND MAKE A COMMENT ABOUT TO KIND OF FOLLOW UP WITH THE SPED. SO I WANTED TO JUST MAKE SURE I FULLY SUPPORT THAT WE MAY HAVE TO COME BACK AND DO A BUDGET AMENDMENT, BUT I JUST WANT TO BE CLEAR, THE THE NEW SYSTEM OF THE INTENSITY OF SERVICES, WE WILL NOT NO, WE WILL NOT KNOW THAT FUNDING UNTIL. DID I HEAR YOU SAY 2027? YES, MA'AM. IS THAT CORRECT? IT WOULD BE SEPTEMBER 2027 WHEN WE WOULD HAVE A DEFINITE ANSWER ON WHAT FORT BEND ISD IS ELIGIBLE TO RECEIVE, AND THAT'S HAVING TAKEN THE TIME TO TAKE EACH INDIVIDUAL STUDENT, PLACE THE WEIGHT ON THEM, AND THAT WILL DETERMINE OUR FUNDING. SO SEPTEMBER 2027 IS WHEN WE WOULD HAVE A FINAL DETERMINATION OF THAT FUNDING. DID WE GET AN ADDITIONAL AN ADDITIONAL ALLOTMENT? BEFORE THAT FROM THE LAST LEGISLATIVE SESSION? DID I UNDERSTAND THAT? NO, MA'AM. SO CURRENTLY, THE WAY THAT IT'S ONLY THIS ONE, YOU WERE REFERRING TO THIS ONE. YES, MA'AM. THAT'S CORRECT. THIS IS THAT WILL BE OKAY. ALTHOUGH IT WAS PASSED IN 2025, 2026, 26, 27. SCHOOL YEAR IS THE FIRST YEAR IT'S TO BE IMPLEMENTED.
[00:55:06]
AND JUST AS A REMINDER HERE, OUR FUNDING FOR 2627 WILL BE AT LEAST EQUAL TO WHAT WE RECEIVED THIS CURRENT YEAR. SO IT'S GUARANTEED TO NOT GO DOWN. BUT IN THE FUTURE IT COULD GO DOWN OR IT COULD GO UP DEPENDING ON OUR STUDENTS OUTCOME. OKAY. AND THEN THANK YOU. THANK YOU, MR. GWIN. AND MY LAST COMMENT IS, IS IT'S A LITTLE BIT LIKE THAT ATTENDANCE, RIGHT? OUR PARENTS CAN ACTUALLY HELP US WITH OUR FUNDING SOURCE. AND ONE OF THE THINGS I'M GOING TO ASK FOR, BECAUSE THAT 30 MILLION THAT WE MAKE UP TO SUPPORT OUR SPECIAL EDUCATION STUDENTS, WHICH WE SHOULD. BUT YOU KNOW, ANYONE THAT HAS A VOICE OUT THERE, YOU KNOW, TO, TO, TO CHEERLEAD AND CHAMPION FUNDING FOR PUBLIC SCHOOLS, FOR OUR SPECIAL ED KID COMING FROM THE FEDERAL LEVEL AND THE STATE LEVEL, THAT'S SUPER HELPFUL TOO, BECAUSE EVERY VOICE IS IMPORTANT. SO THANK YOU VERY MUCH FOR THE ANSWERS. THANK YOU. THANK YOU, MISS HANNON. MISS CHARANIA.YEAH, I DON'T ON PAGE 14, IF YOU COULD GO TO THAT SLIDE AND I DON'T KNOW IF I MISSED THIS IN THE BOARD UPDATE OR NOT, BUT WHERE IT SAID 3.8 IS TARGETED EQUITY ADJUSTMENTS. SO WE'RE NOW INCLUDING THE PARAPROFESSIONALS AND THE SUBSTITUTES. RIGHT. IS THAT ALL PARAPROFESSIONALS ACROSS THE BOARD OR IS IT SPECIAL ED AND, AND A CERTAIN GROUP IT'S IT'S ALL PARAPROFESSIONALS WHO WOULD QUALIFY FOR AN EQUITY ADJUSTMENT. OKAY. SO WE WOULD LOOK AT THEM INDIVIDUALLY. THE PAY GRADE WOULD POTENTIALLY CHANGE. AND THEN WE OKAY. AND THEN EVERYONE WHO WAS INCLUDED IN LAST WEEK'S, LIKE THE LAST MEETING, WHEN WE LOOKED AT THE 3.5 MILLION AT THAT TIME, WHICH WAS COUNSELORS, NURSES, AND I THINK DIAGNOSTICS AS WELL. YES, MA'AM. THEY'RE STILL THEY'RE ALL STILL INCLUDED. AND THEN I DON'T KNOW IF I MISSED IT IN THE IN THE BOARD UPDATE, BUT I DIDN'T SEE THE LIST OF ALL OF THE POSITIONS THAT WE WERE LOOKING. NO, WE DIDN'T LIST THEM ALL IN THERE. WE, WE DIDN'T LIST THEM INTENTIONALLY BECAUSE WE WERE GOING BACK TO LOOK AT WHAT WE COULD INCLUDE WITHIN THE AMOUNT OF FUNDING THAT WE HAD AVAILABLE. AND SO NOW WE'LL BE ABLE TO COME UP WITH A MORE COMPREHENSIVE LIST DEPENDING ON THE OUTCOME. OKAY. GOT IT. THANK YOU, I APPRECIATE IT.
THANKS. THANK YOU, MISS CHARANIA, DOCTOR GILLIAM. AND I IMMEDIATELY WENT TO THE COMPENSATION ALSO WHEN IT FIRST CAME I JUST I'M IT WAS VERY NICE HEARING THE THINGS THAT ARE GOING ON RIGHT NOW IN ADDRESSING, YOU KNOW, THE INCONSISTENCIES THAT WE HAVE AND HOW MANY NEW ITEMS DO WE HAVE AND THINGS THAT ARE JUST DIFFERENT RETENTION, YOU KNOW, RETENTION. IT SAID SOMETHING ABOUT BEING HARMLESS. AND THEN WE GO INTO WHAT I HEAR IS YOU ALL ARE LOOKING AT PRETTY MUCH ALL ITEMS TO MAKE THIS BUDGET WORK. THAT WAS THE END OF AS, AS I HEAR IT, IT'S LIKE, YEAH, YEAH. SO IN ADDRESSING THE INCONSISTENCIES AND HOW MANY NEW ITEMS DO WE HAVE OUT THERE? I KNOW THAT'S A, I DON'T WANT TO MAKE THAT A. I KNOW IT'S A LOT. I'M JUST WONDERING, I WOULD LOVE TO SEE HOW, HOW MANY DIFFERENT THINGS THAT WE'VE DONE. WE HEAR IT, BUT LIKE AS FAR AS ACTUALLY THE NUMBER, I WOULD REALLY LIKE TO KNOW. YES, MA'AM. WE CAN COME UP WITH A COMPREHENSIVE LIST AND PROVIDE THAT AND AN UPDATE OF WHAT WE'RE LOOKING AT. ONE OF THE THINGS THAT DOCTOR SMITH HAS CHARGED US WITH IS EVEN WITH THE FINANCIAL LANDSCAPE THAT WE'RE CURRENTLY IN, NOT FOCUSING ON WHAT WE CANNOT DO, BUT REALLY FOCUSING ON WHAT WE CAN DO. AND SO THAT'S WHAT YOU HEAR TONIGHT IS, IS JUST A PRODUCT OF WHAT WE CAN DO. AND THANK YOU. AND THAT WAS OBVIOUS. OBVIOUS TONIGHT. THANK YOU, THANK YOU. THANK YOU, DOCTOR GILLIAM. THANK YOU FOR THE TIME. I FORGOT TO ADD THAT WHEN WE GO TO PAGE 28 AND I LOOK AT THE LOCAL TAX RATE COMPARISON. I MEAN I AGREE WITH YOU. I MEAN THE QUALITY OF WHAT WE'RE ABLE TO OFFER, YOU KNOW, AND WHAT THE OTHER SCHOOL DISTRICTS ARE.
BECAUSE IF I DO MY MATH, THE $0.07 THAT WE HAD, LIKE WE INITIALLY HAD, THAT WAS ABOUT $30 MILLION PLUS MINUS. AND EVEN IF WE DID HALF OF 3.5 CENTS, THAT WOULD STILL BE $15 MILLION. AND THAT WOULD REALLY ALLOW US TO DO EVERYTHING THAT WE'RE LOOKING TO DO, AT LEAST THIS YEAR, FOR THE COMPENSATION PIECE OF IT. RIGHT. AND I'M I'M NOT ALWAYS IN FAVOR OF INCREASING IT, BUT IF IT MAKES SENSE TO WHERE WE'RE ABLE TO COMPENSATE OUR PERSONNEL AND OUR STAFF TO THE LEVELS THEY SHOULD, I DON'T KNOW IF THAT'S SOMETHING WE LOOK AT, AND I DON'T KNOW HOW MUCH WE WOULD GET BACK FROM THE STATE EVEN AFTER AN INCREASE. SO JUST SOMETHING TO PUT OUT THERE. I THINK THAT'S A HUGE GAP LIKE OF $0.09 WITH THE NEXT NEIGHBORING
[01:00:07]
SCHOOL DISTRICT AND $0.12 WITH ANOTHER ONE. SO WHICH IS NOT EVEN IN GROWTH MODE, YOU KNOW, SO. THANK THANK YOU. MR. THAT WAS THAT IT? YEAH. AND, YOU KNOW, AND I THINK WHAT MISS WHAT TRUSTEE HEYLIGER WAS SAYING THAT THEY HAVE SIMILAR ENROLLMENT TO WHAT WE HAVE AND WE ARE SO MUCH LOWER, YOU KNOW, SO I AGREE WITH YOU. TRUSTEE HEYLIGER. THANK YOU, MISS TANIA.SO IN THE INTEREST OF TIME, I HAVE A FEW I HAVE A FEW COMMENTS, BUT I'M GOING TO MAKE THEM QUICK. AND I MOSTLY JUST WANT TO CLARIFY OR MAKE SURE THAT WE'RE ALL UNDERSTANDING.
SO FIRST OF ALL, THE TEACHERS ARE GOING TO RECEIVE A PAY INCREASE BECAUSE OF THE STEP WHICH IS INCLUDED. SO THEY WILL BE GETTING THEIR STEP INCREASE. YES, MA'AM. THE OTHER THING I JUST WANTED TO CLARIFY IS THAT IN THE SCENARIO THREE RECOMMENDATION, WE ARE INCLUDING THE BUS DRIVER. PERFECT ATTENDANCE ALLOTMENT OR WHATEVER YOU GUYS ARE CALLING IT STIPEND. BUT WE ARE NOT INCLUDING THE PARAPROFESSIONAL INCREASE, THE SUBSTITUTE INCREASE AND THE SIGNING BONUSES FOR THE HARD TO FILL POSITIONS. THOSE ARE RESERVED FOR A FUTURE BUDGET AMENDMENT. IS THAT CORRECT? CAN I SPEAK? OKAY, SO I'M GOING TO GO BACK ONE MORE SLIDE. THE $1.7 MILLION WOULD ONLY INCLUDE THE BUS DRIVERS AND MONITORS, THE PAY INCREASE AND THE SIGN ON BONUS. THE PERFECT ATTENDANCE WOULD COME WITH AN AMENDMENT LATER ON WHEN MORE FUNDING IS AVAILABLE. SO YOU'RE INCREASING THE STARTING PAY, NOT GIVING THE PERFECT ATTENDANCE. NOT NOT JUST YET. WE WOULD BE BRINGING THAT BACK WHEN FUNDING IS AVAILABLE. OKAY. I HAD THE SIMILAR QUESTION AS MISS WAS ABOUT WHERE ARE WE GOING TO GET THE STAFF TO ENTER THE VERY, VERY DETAILED INFORMATION. AND THAT'S NOT A QUESTION YOU GUYS NEED TO ANSWER TONIGHT, BECAUSE I KNOW THAT OUR SPECIAL EDUCATION STAFF IS ALREADY EXTREMELY OVEREXTENDED, AND WE KNOW THAT WE HAD OUR DIAGS AND KIND OF ALL HANDS ON DECK TO GET US COMPLIANT. SO I'M A LITTLE CONCERNED ABOUT THAT. SO I LOOK FORWARD TO SEEING A FUTURE UPDATE WITH HOW WE'RE GOING TO MANAGE ALL OF THAT, BECAUSE I KNOW WHAT THEY'RE ALREADY DOING. I ALSO WANT TO GO. SO SLIDE 26. I JUST WANT TO REMIND US AND REMIND EVERYONE LISTENING THAT WHILE THE AVERAGE HOME VALUE MAY INCREASE, THAT $8,739, AND I SEE THAT WE'RE THAT THE TAXPAYER IS SAVING MONEY IN THIS SCENARIO. BUT I KNOW IN SOME SCENARIOS, IN MOST SCENARIOS, EVEN IF OUR TAX RATE GOES DOWN, THEY DON'T ALWAYS SAVE MONEY BECAUSE OF THE APPRAISALS THAT GO UP EVERY SINGLE YEAR. AND I JUST WANT TO REMIND US THAT FORT BEND ISD DOES NOT SEE THE THOSE ADDITIONAL FUNDS OR THOSE INCREASED FUNDS THAT THE TAXPAYER PAYS BECAUSE IT IS OFFSET BY THE AMOUNT OF MONEY THAT THE STATE PAYS TO FORT BEND ISD. SO WE HAVE A SET AMOUNT OF DOLLARS THAT WE CAN RECEIVE BASED ON THE BASIC ALLOTMENT AND SOME OF THE OTHER ALLOTMENTS THAT ARE OUT THERE. AND THAT'S THE AMOUNT OF MONEY THAT WE GET. SO REGARDLESS OF WHAT A TAXPAYER IS PAYING, EVEN IF IT'S MORE THAT MONEY DOES NOT COME TO FORT BEND ISD, IT BASICALLY GOES TO THE STATE OR IT'S CREDITED TO THE STATE, CORRECT? THAT IS CORRECT. AND FOR EVERY DOLLAR OUR LOCAL PROPERTY TAXES INCREASE, STATE REVENUE GOES DOWN BY EXACTLY THE SAME AMOUNT, $1. SO IT'S A DOLLAR FOR DOLLAR TRADE OFF, RIGHT. SO I JUST WANTED TO REMIND US THAT WE ARE NOT YOU KNOW, I KNOW I HEAR FROM TAXPAYERS, WE ALL HEAR FROM TAXPAYERS. AND IT IS A VERY FRUSTRATING SYSTEM FOR EVERYONE INVOLVED, INCLUDING THOSE OF US WHO SIT ON THIS DAIS. SO THAT'S BECAUSE OF THE WAY SCHOOL FINANCE WORKS. THOSE INCREASED TAX DOLLARS DO NOT COME TO US. SO I JUST WANTED TO REMIND US OF THAT. I APPRECIATE THE PRESENTATION. I'M GOING TO RESERVE ANY ADDITIONAL QUESTIONS I HAVE FOR A FUTURE TIME SO THAT WE CAN GET STARTED WITH OUR WITH OUR REGULAR MEETING. THANK YOU BOTH. MAY I HAVE A MOTION TO ADJOURN? ADJOURN. MOVE TO ADJOURN. THE
[01:05:06]
TIME IS 6:05 P.M. AND WE ARE ADJOURNED. I'M GOING TO GIVE US A FEW MINUTES TO LET THE PUBLIC COME IN AND TAKE THEIR SEATS AND GET SET UP. WE'LL GIVE FIVE MINUTES FOR THAT AND THEN WE WILL. WHEN? AND THEN WE WILL START* This transcript was compiled from uncorrected Closed Captioning.