Well, I don't have Sarah yet. No. >> Should we start without her or we want to wait a couple minutes? >> You're the chair. You get to >> Well, we have a It's 10 o'clock and we have So, let's get this baby going. >> We're calling the meeting to order. >> So, you want to do roll call? >> Now, I have to do
>> Well, I know, but what about Sarah? She can just come after. >> Okay, perfect. Roll call. [snorts] >> Breen >> here. >> DJ D >> here. >> Stephanie Edman >> here. Heidman >> here. >> Sarah Spear. John Ward.
>> All right, let's do the pledge. >> Pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.
>> Great. Uh, we need approval agenda to do that. >> I'll make it. >> Stephanie, second. >> I'll second. Michelle. All in favor? I >> got to do roll call. >> Roll call. >> Roll call. >> Michelle Breen.
>> Yes. >> Donner. >> Yes. >> Stephanie Edman. >> Yes. >> Randy Hidman. >> Yes. >> All in favor? >> Do this is the special board meeting. There'll be no public input allowed at this meeting. Uh first thing for action is approval of the first revision of the
2526 budget as presented by Marcy Lord. So in your packet there is a document that's multiple pages that goes into more detail and then there's also the presentation slides which I will be going through which is um a very brief synopsis and it really focuses on the
general fund. So this uh first slide is the first revised budget which is our starting point for the preliminary budget for 2526 and we are focusing on the 2526 revision. It's very late and um just with the transition in the our
office that's why it's so late but we do want to get it in there because when we talk about the original or preliminary budget that's there's a lot of unknowns at that time. So that first revision then takes into account the student count and the staffing that we currently
have at the time. Um the I also put in there the 2425 audit so you guys could see what the revised budget was compared to the audit for [clears throat] 2526. And when we compare the two,
the primary difference is a $2.8 million deficit in unassigned and the actuals was a $800,000 deficit. And we've talked about why those differences are when we presented the audit. And then community service had a projected deficit of 188,000 which actually ended up being an
80,000 excess. So just a kind of a recap of how we ended the year versus um 2425. I know it goes back a little ways. >> What was the last thing you just said? Was that about community ed? >> Yep. >> They they were in the black. >> Yes. >> Great. >> Yes. >> Perfect.
>> Good job, Emry. >> So then we look at 2526 what we used for assumptions. 2.7% increase on the formula which was because of the inflationary factor and then we were going to be project down a projected 122 uh students. There was a decrease in
compensatory which I'll talk about later uh after we approved the budget. Then the legislature did uh did a hold harmless or and we actually saw a million dollar increase on that similar to this year where we were projected to uh have a decrease and then they did
some legislative changes and we we don't see as big of a decrease. Same thing happened again. Um we also had in the assumptions an increase in salary and benefits and then adding the PML or the paid medical leave for a half a year. that what started January 1 and then
spending down fund balances in capital compensatory and learning and development and then adding back those CARES positions. So 2425 we was the last year of CARES and we had to put all those positions back into the general funding. So that was an ad as well. So
those all those assumptions went into the 2526 preliminary budget and our enrollment projection was 5,630 students for 2526. And then when we [clears throat] looked at the what that meant for the
unassigned, it was about 2.2 2 million for 2526 preliminary budget >> [snorts] >> uh with a beginning balance uh is what was carried over from the preliminary budget of 2425 and then with the revision we put in actuals because we
know what the audit is. So what's in the first revision? What what what I'm presenting to you guys today? There's a decrease in enrollment of 28 based on the October one count. The compensatory revenue did go up as I had said because the budget was approved
before that change happened. There was an update to the federal and state awards. One of the big ticket items in this revision was special ed revenue went up over a million dollars. That is why you're going to primarily why you're going to see the unassigned balance go
uh deficit go down. [clears throat] We updated salary and benefits which is super time in intensive. That's the biggest part of our budget. And I just want to share for an example adding that paid medical leave. The state wanted that tracked separately in its own
object code. That added 536 new account codes. >> Oh god. because we we have account codes for restricted accounts, unrestricted accounts, and then you add that object code to all of those. That's 536 new
account codes. >> So, [snorts] it's a lot. >> They're all going into one thing. >> They're all going >> You're pulling out of 538 deals to put it in one big pot. >> Yeah. >> Once you do it once, it's going to automatically do it for you, right? >> It's it's they're separate lines in my
in my world. >> Marcy, >> you're going to [snorts] have to get rid of that. I wish I could. >> What's the financial impact of folks taking family medical leave? >> So, right now we're remitting about $40,000 back to the company.
>> So, half of that's the district and half is the employees. >> Okay. >> So, the 500,000 was half and half. >> Yeah. >> But 250. >> Yep. Uh 500,000. Where did you get the 500,000? >> But you said that we had spent about
500,000. No, I added about 500 codes. But >> yes. >> Oh, but it was about 40,000. >> 40,000 were remitting back to the insurance company every month. >> Oh, every month. Gota >> half stars. >> Just curious, is there a count of how
many people took advantage of that medical? >> I don't have that count. Um Jason would have that count, but >> we can get that. Yeah. Just curious how >> that'll be the real cost. Mhm. >> That's so it's really getting expensive.
>> Anyway, I thought we digress. >> No, it's good. They're all good questions because it's new. >> Uh and then we did have increase in services for hard to fill positions, uh SLPs, interpreters. If we can't fill those positions, we do end up hiring
contracted services for that. And then there was a decrease in the PSO budget line item with the new agreement which was awesome because we've seen that slowly tick up in the fa past few years and we were able to actually decrease that with the new new change. So that was awesome. >> With what new?
>> They redid the contract so that now um Peter probably would be able to explain this a little bit better, but they they did it as a group Pquat um >> consortium that made an agreement with CLC. >> Okay. Yeah. >> So we're able to save some money. Yeah.
Okay. Uh and then there was a a so we book receivables for the prior year and if those receivables come in higher I can recognize that revenue in this year and there's about 500,000 in gened receivable that I could book to this
year 2526. But I just want to note that then I have to take that out of 2627. It's not like something that's going to carry forward multiple years. So with the first budget revision, now we're at 5,62, not the 5630 that was in the original
budget for enrollment. So with the first budget revision, the beginning balances, like I said, are updated to what was the audit for 2425. And then we look at what's in the budget for the revision. And there was a couple lines added. Q comp is now restricted.
it was a assigned previously and then the American Indian ed is now a restricted fund balance as well. So those are two new lines. So a comparison of the preliminary budget with the first revised budget uh the deficit went from 2.2 million and
unassigned to 1.3 and then the overall def deficit in the general fund was is about 426,000 which includes the restricted funds. How come the um American Indian the new the new line is dollar for dollar
revenue expenditures? The rest of them are all, you know, they're not exactly the same, >> right? So So that one we can't carry over. So if we don't spend it all, then it goes back to the state. I think there's going to be a change in that, but um for right now, that's how it
works. So if we don't spend it, then it goes back to the state. So no matter what, if we spent 160,000, then the revenue is going to be 160,000. So, is that all payroll? >> Uh, payroll and supplies. >> So, they they do try to spend it. That's
what they when I went to that >> we don't seem to have a lot of problems spending earlier spending. We're pretty good at that >> because they're going to try to hire another part-time person just so they could spend everything. >> And that 174 is the award allocation. So, I don't know what the award
allocation will be for this next year. You guys will see that same number in the 2627 budget. So, the unassigned fund balance um so the state of Minnesota recommends five months or less and this is a change [clears throat] from what I've previously shared. I did do some
research after I got questioned on that and um it is with school districts you can have less than that based on how we get paid but it is critical for cash flow and credit ratings. So the current policy is 10% and we are going to be at
tw 12.8 with this revision which [snorts] is a month and a half of operating expenses expenses not very much. So [clears throat] what's next? This revision was our starting point for the 2627 budget and then we apply all the
assumptions. So, for example, the gened formula is a big one, enrollment is a big one, and then um special ed and federal levy, and then of course our staffing and services and supplies are looked at. So, is there any questions on the
revision? I don't think so. Anybody have any? >> I guess we're looking for a motion. >> I'll make a motion. >> Second. >> Kelly. Roll call. >> All discussion.
>> Dair. >> Yes. >> Stephanie Edman. >> Yes. >> Heman. >> Yes. >> Michelle. >> Yes. All right, Marcy, you're up. >> All right. >> 2627. >> Yes.
>> Here we come. >> I struggled with getting this to work last time, so Ryan may have to come and help me. >> No, it's not. Sorry. >> Oh, you got it. >> Looks can be deceiving. >> While she's pulling that up, I can sure
we've had 56 people apply for paid family medical January 1st >> 56. >> That's a lot. >> That seems >> be on track for maybe 100 out of thousand on payroll.
>> That's terrible. >> [clears throat] >> And it's only gonna go up. >> I'm sure. >> Well, it ain't going to go down. [clears throat] >> Thank you. >> All right. So for the 2627 budget, you
guys are going to hear a lot of the same things. So our starting point was the 2526 revised budget. The screenshot is the general fund which is a deficit of about 1.3 million in the unassigned. As you guys know, we focus
on that because that's the one that we have is unrestricted. We can use it for anything. There are other categories and if you have any questions on those, just let me know. Here we go. Um, so for assumptions for from
the 2526 budget, we have 2.7% on the formula due to the inflationary factor again. So we had that in 2526, now we have it again in 2627. We are projected to be down 182 pupil units and then the compensatory even
with what the legislature did for us we still will be down about 900,000 so atif or 15.3%. So that's in here as well. There's going to be an increase in the levy and then a reduction of so we have to set aside 2%
for staff development of our revenues but the there was anou so now that's only going to be 1%. So the other 1% of those revenues just goes into the general fund. >> Marc [clears throat] let me >> make sure that I understand we're talking about a 2% increase in general
ed formula. Um, is it 2% or did it increase to 2.7%. >> It's a 2.7% increase. >> So, what is it total then? >> So, it's now 7,000. I should have wrote that down. >> 7481 last year
>> and then add 2.7% on it. He's DJ's going to do the math. That >> 2.7 is by law. >> Okay. I just wanted to make sure because we're [snorts] >> 148 76 82 89 almost like they're trying to sell
something. 89. [laughter] >> They always round up. We don't get the >> Oh, good. We got 7683. >> Yeah. >> So, that would mean that our enrollment projection is going to be about 5,420 with 333 in [snorts] kindergarten. And
again, we'll look at that with the revision for next year, what what October one counts will be, but that's our projection right now. Just want to point out um we talk about how the birth rates are going down. In the birth year 2014, there were 695
births in Crowing County. In 2024, there was 599. So 96 difference in the births in 10 years. Is is the decrease in enrollment um that's projected is that strictly
based on kindergarten versus seniors? >> It's it's that and it also takes into account the transition between grades. So it looks at our historical data >> and says oh from fifth to sixth you typically lose on average you know x
number and it'll it plugs all of that into the formula. Yep. Just one thing about her 2627 estimated enrollment. You go back to 2019, it's almost 2,000 kids.
That was 7,180 or something like that. >> Crazy. That's a lot. [clears throat] >> What's also kind of >> fix it. There's no whine about it. >> What's also
>> Go ahead. We can't fix the birth rate, but we can fix a lot of that. You didn't have 7,000 kids from Brainer going to school here, Peter. You had about a thousand people that are open and rolling into Brainer schools. >> So, CO was a game changer. >> Now, we got to get back on track.
>> So, >> what's kind of interesting, I think I pointed this out, Marcy and I were talking earlier, we had got done a little bit earlier. To me, what's really interesting for 26 27 between fourth and fifth grade, you know, we're going from a minus 40 in
comparison to 25 26 to 26 27, but then you go to grade seven or grade five, excuse me, and we're up 71. Well, that's a big swing. Why? Why is that? >> I don't know. Makes you wonder if it's right.
>> Yeah. Not I mean, this is kind of a formula, right? So you're kind of like Yes. >> Yeah. But it's just kind of >> right. It's just taking data. >> Yeah. >> Yeah. >> I got to keep them. >> So then we So those are the revenues in um the budget and then we look at the
expense assumptions and there's an increase in the salary um of and benefits and contracted services known and projected. And then uh FTE reductions, additions, and replacements are all in there as of the last board
meeting. So any of the resignations or retirements that you saw on the agenda since January have been are in the budget with um estimates on replacements. And so you guys know we always do worst case scenario. So if
they um would take family and family medical and dental that's what's in the budget. They may not you know that is a that is something then we'd look at at the revision. If they did not then we would adjust for that. or maybe they were hired at a lower level or a higher
level. That would be in the revision. Um and then um one thing that we did in 2526 is we moved all of the tech staff to capital to spend down that fund balance and try to save on the general fund. And we talked about moving that
all those back in this budget. We did still have some carryover in the capital fund balance. So moved out two of the FTE and so just keep that in the back of your mind for next year. We would then have to move the rest of them back. So it's it's helping the general fund a
little bit longer. And then we also had a decrease in the supplies based on student count. So we'll continually do that every year as enrollment goes down. We have a calculation supplies will go down. So the prelim preliminary budget um with
all the assumptions the unassigned deficits about 3.4 million and uh staff decreases from 920 to 450 staff development. So when you look at that specific line, um it's about 1, two,
three, four from the bottom, the revenue goes from 920ome,000 to 457,000 because of that 2% to 1%. So that's really the only major change. I noticed our screen is not updating. Sorry guys.
It's updating on mine, but not >> So we're still going to spend the same amount. We're just not taking it in. So you're spending down that balance is what? >> Yeah. And they did make some reductions. So >> what is it used for? >> I know it's staff development. What is that? Explain.
>> So they may be doing curriculum writing. There could there is um presenters. There is on the staff development days like what >> doing it. >> Yes. >> Trying to think of some of the bigger
purchases they have. We have software that's I think almost 50,000 that we use to track all of our staff debt or licensing and all that. Um so there's some fixed costs and some costs that vary. Thank you.
But they did [clears throat] make some reductions in anticipation of this reduction of their revenue. So because I think the budget was around 900,000 for 25 26 >> whose staff that is that the educators
>> all across so there's Yep. We have set aides for interpreters, secretaries, EAS like they the majority of it is the educators but there are other pockets that are used for other staff. >> Gotcha. >> All right.
And then again the unassigned fund balance the policy is 10%. With this the projected balance would be about 9.3%. We'd be below our policy. And then looking ahead um with 2526
revised budget to 2627 uh original budget. We do carry forward the state aids. Um those don't get updated until that first budget revision. And then actuals versus estimates of expired contracts would hopefully be in that revision if they
are settled. And then um the potential operating referendum, this is looking even further ahead. That would be in 2728 if that were to pass. Uh other funds. So fund two in the budget revision or in the 26 27. This is
why having them both is a little I'm I apologize. It It would be nice if they were separate. Um there are no known changes at this time. Um as far as revenues goes, we did adjust a little bit on the expense side for any
salaries. Community service fund was updated based on the current programming um from the director. And then the building construction fund was updated with any planned projects. And there was some carryover from 2526 of projects that weren't done. So when you look at
that balance, it looks like we're going to be around a million. It's probably going to be more than that. And we'll know that when we close out 2526. The debt service fund was updated uh with any levy or bond payments. And then the OPED, there really wasn't anything
any major changes in that fund. Any questions on the preliminary budget or original budget? >> What u what was the main cause for the delays? And I mean I know you had all
these lines that you had to adjust for and put in. >> Yes. >> For various things. Uh is that the biggest reason? >> Yes, it's staffing. So, we have, you know, our new accountant and then just the amount of time that we it takes to get all these lines entered is it's a
lot. I mean, it's over 7,000 lines. So to enter each one, um, you could just plug in a number, but with all the restricted accounts that we have, so like if I put in an estimate of the salary and benefits for next year and didn't apply it to all the restricted
accounts, then we would have major differences in our budget. So I'd rather I'd rather be closer. Is that something that's been that will be alleviated going forward or is it going to take a lot of extra
>> effort? It's ongoing like this is we do this every year where we have to enter all of it. I um I would like to look at a module in Skyward potentially that would eliminate the use of an Excel spreadsheet. That is something that I'm
hoping to look at. Why are you looking at someone other than Skyward? >> We have talked about um so Skyward right now we are we're on the SMS 2.0 version
and there is a Q version. Um I think looking at that I I I'm hoping too that maybe there'd be some improvements, but we don't have that scheduled out with all the new staff. I don't know if I could go through a conversion right now like that. That's a lot of time too. So
>> there aren't very many products out there that are >> the midmarket software in public schools. >> Uh smaller districts will hop into like some type stuff that's even less robots. >> Then bigger districts will get into the
SAPS and you know some of those bigger ERP things you might see in the private sector but those are dollars. So our budget >> and MDE has requirements of what programs you use. So I can only use
Skyward Smart. Um there's a list in the UAR's manual. So I can't use a QuickBooks like that's not something that's allowed by MDE. >> There's Yeah, I appreciate that. Yeah, >> you can't just use whatever you want to deal with Chevrolet or Ford or Chrysler or Toyota either. So it's the same
thing, but there are 15 different providers. and they all have different pricing. So, you should be I don't know what kind of contract around we should be shopping them. >> We should be seeing what's out there because to think that you're still using Excel spreadsheets for anything more than just on your little projects that you have. >> Yeah.
>> I mean, I understand an Excel spreadsheet's a great tool, but to think that you're actually running a school district of this size >> with 100 million bucks on an Excel spreadsheet is a little bit frightening. >> Yeah. Oh, yes. [laughter] >> I don't disagree with you, DJ. >> You just make one little thing and it
changes everything. Yes. >> Well, we need a motion to accept those. >> I'll make a motion that we approve the 2627 budget. I'll second it. >> Any discussion?
>> Um, I would add to your motion that the original budget. >> Yes. >> What does that mean? >> Well, Michelle's motion was just to approve the budget. I'm being more specific and saying the original budget because that's what we've been talking
about. That's all. >> There you go. >> Just words. >> I thought I said that but maybe I didn't. >> You may have. I >> called the original budget. >> That's what it um that's what it is in Skyward is the original budget. >> Oh, it's a Skyward those guys again.
[laughter] Skyward says better deal. We better have a roll call before I get in trouble. >> Yes. Stephanie. >> Yes. Randy, >> yes. >> Breen, >> yes. >> Yes.
>> Thank you. >> Thanks, Mark. >> Thanks. >> Thank you. >> The next deal up is the approval of theus uh regarding the GOP ones. Does anybody have a motion? >> I'll make a motion. >> You can just sit in the front row. Yeah.
Uh, we have a second. >> I'll second. >> Um, >> Stephanie made the motion. >> Uh, discussion. >> Are they all signed? >> Roll call vote. >> Randyman. >> Yeah.
>> Yes. >> DJ Dunley. >> Yes. >> Stephanie. >> Yes. >> There we go. All right. That passes. We need a motion for adjourment. >> I'll make a motion. >> Okay, >> I'll second. >> Okay, roll call. Kelly, please. >> Yes.
>> Dlinger. >> Yes. >> Stephanie, >> yes. >> Yes. >> Hi. >> Hi. [laughter]