next item please the next item uh is business services oh c sorry page 21 21 oh these are the oh sorry those are the business items
sorry okay discussion items correct okay we are on the first look at the 2025 2026 budget with mr thomas wall good evening again um on that 16 it's train not trance just in case someone's actually
looking for trance there is no trance it's train number 16 just as a note for the minutes corrections i read it correctly for the record yes it was spelled incorrectly trusty barry i read it correctly looking at you i read it t
r a n c e yes you read it correct resolution said train just so we're clear yep just want to fix that all right good evening board um we're here to talk about the budget uh for next year so the 2526 budget uh we're we're
in the process uh unfortunately we do have a lot of information yet the system at the legislative level is going very slow so we'll talk about that but on your calendar of our budget we started obviously back in january when we had our first revenue consensus we're about
midway through where we're now looking at the april 14th first look at budget assumptions so we're going to talk a lot about budget assumptions not the actual budget detail in any great detail uh thing to note that you'll see later on we have one board meeting in
may and we have one more board meeting in june and we're required by law to have a budget hearing prior to the budget adoption by july 1st which means at our next meeting we're going to have our budget hearing where we'll talk more about the details of the budget
unfortunately we we are we might not know any more information then we do now but we still have to go through our process to have an adopted budget so it'll also be based on a lot of assumptions and then the last meeting is june when we actually approve the budget so we'll get more into that in may of
the actualformational but just want to make sure you there's two board meetings left and each one will have budget discussions on each of them uh the legislative process as you can see by this graph uh the governor has proposed her budget uh the house did
a very shortcut version they say gave us the foundation allowance and everything else was eliminated so that doesn't give us a lot of to work with so i think they just said we're not going to discuss it now we're just going to push it and wait to the conference committee so when the
senate comes out with their budget the three of them will sit down after the revenue consensus in may and then start actually working on the actual budget they'll eventually award but that is further down the road so there serious discussions won't happen until after the
third friday in may when they actually have the updated economy numbers and they'll sit down and kind of work out a budget process early discussion has stated that that might take some time well into our school year for next year but we'll have to wait and
see does it stop us from our legal requirement of actually having a budget adopted by july 1st and feel free to ask questions as we go along so looking at some of the information that came out of the revenue consensus in january and the key point
is that revenues have gone up that's the key point so what they expected to have revenue at this time has been due to the economy is higher than what they expected so they're making the adjustments next one shows where the dotted line is what we're currently
spending on school aid and then you can see the yellow line is actually the revenue so you can see there's quite a bit of difference there's more than a billion dollars available in the school aid fund for use for funding so again it's a legislative process so we'll know more as they go along but there is money
available that's the key note on this screen is there is money available to give to schools for our school funding fund balances um if you look at this is very similar to even our fund balance that a lot of money was saved during the esther fund from the federal
money coming in so the state basically put money aside in their um year-end budget for surplus for future years and as they start spending that money down you'll see it their fund balance is getting back to normal but still there's roughly about a billion dollars still in
the fund balance for school aid uh a percentage of budget growth based on the personal income uh you can see it went up again during the um and during the pandemic for we had a lot of funds coming in from the federal but
it's kind of now back to stabilization background so we're looking at the governor's budget because that had the most detail um you'll see that she's maintaining of what she's done in the past a lot of what she recommended in there we're looking at roughly about a $400 per pupil increase
that would get our foundation allowance up to about $10,300 in change and the minimum foundation at 10,000 so you'll see that if you remember if you ever look at proposal a the gap between the lowest and the highest have definitely come to a close where we're just barely
above where the minimum foundation allowance is whenever that does happen our hold hard hold harmless funding that we have would go away but we don't know when that'll happen that'll be someday in the future i'm sure because they'll keep wanting to close that gap all right if we look at the federal
funding because that's always been a big question what kind of role does that play for us in school funding it's roughly about 9% of our budget so if you look at what the federal money is coming in that 9% is significant for us because we get a lot of money for economic
disadvantaged students and our el population so it makes a big difference for us but it's roughly about 9% of the state aid budget foundation allowance we talked about that it's roughly about a 4% increase um ours would be slightly higher than the 10,000 the other thing
to notice that the state of michigan total population continues to decline and we'll talk about our own numbers later on yes do you happen to have a rough estimate of how many students in total are in the state of michigan yes i do and how many districts because people
have to understand all of this money is being divvied up i'm going off forward a little bit oh okay but right there you'll see on the right hand side so you can see it peaked in 20034 and since then it has gone down so we've lost about 19% almost 20% of our
kids since 20034 in the state of michigan wow so that's kind of a history because i think that's important and financially it helps us because whatever money we have is divided by less kids that's why i wanted however you know it's still
it's a it's a trend that you know in michigan that we just continue to see that now dearborn has been an exception and we'll talk about that later but we're now starting to see the trends also so apologize i have to go back a few slides now sorry i don't want you to miss all this information um
inflationary growth you can see by the uh revenue estimates and ongoing reception we're slightly higher but we do expect in future years where the rate of inflation will exceed our values it will be lo b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b b basically losing the inflationary value on our
funding uh again just talking about the budget reserves you can see the state continues to add to that so that number is getting higher and higher and again that's something they can pull at any time by legislative action to bring back into schools as they see fit the school aid fund as you can see
this is a pie from last school year we obviously don't have this year out available yet but you can see 45% comes from state tax 21% from income tax and the rest the state education tax is on bills on your property so roughly about
65% of that comes from the economy so as long as our economy is doing well the school a fund is well protected and having funding to be able to put towards education uh there is a proposal out there now by the governor to take away our dedicated military school aid fund
and use it for roads that's something i'm always worried about the less dedicated funds we have the more is it subject to legislative process if they're going to make up those funds and vote on it on any given year so just be aware of that just when you look at the school
aid fund where they actually passed the bill roughly about 50% is the foundation allowance the other parts in other parts of the budget this is where we talked about in the past that we get a lot more grants now you've had a presentation at the last board meeting about how much grants are now coming in part of that is because the state has moved away from a
flat foundation receiving our money but we are also out there trying to get federal funds or local funds or state funds for other grants you just saw that today on that 12a grant that is not part of the school aid fund it's part of the us that we applied for in a different division and brought money to us for
repairing our buildings now there was a matching fee on that but we're looking at other ways than just school a fund to help with our infrastructure process and on the right you'll see as we talked about earlier the state uh change in student population all right now moving to our
assumptions um i share this graph every year since about 2015 and you can see that the red line is the rate of increase based on salary increases so you can see the red line that it was affected you know
significantly in the 201011 we had the housing crisis and we asked all of our employees of the district to take a reduction in salary starting about 2015 we have started to get out of that hole and actually started moving up um you can see that we've based a lot about it
on based on our foundation allowance and the economy has been good so our foundation has gone up and so have our wages so it kind of mirrors that the yellow line is our retirement rate um i'm an oldie so when i first started school we paid 0% for retirement that is
not the case now um we have seen significantly increases in that over time uh last year for the first time they gave us a break on the retirement rate however this proposal in the governor's plan is putting it right back up so that's why you see that little
shape u at the end that that that reduction in the mipers rate is not something that was going to go ongoing and so now she's taking it back i thought that was the whole point to so they basically have said that ua break you got last year we're going to
go back it went up 5% roughly 5% again they did reduce the employer rate but it was absolutely not for the same dollar value that they did the prior year tom yes the yellow line uh the retirement uh expenses uh is that for all employees
all employees unless you have retired and come back to the district after your retirement okay that's that's why i was like okay if that's for all employees why so roughly you know it was as high as almost 50 cents on every dollar we pay an employee doesn't matter what job they do 50 cent on every dollar and then
now it's was down to roughly about 40% now it's back up to roughly 45% so why do we have only the the the dft salaries in this graph because we follow that that is our base kind they're usually ones that negotiate first and all employees basically follow that same percentage
so if the teachers got a certain percentage all employees throughout the district got the same percentage percentage not percentage correct not the dollar value just the percentage yes and then the blue line is our foundation allowance yeah you can see that kind of
mirrors it below not always the case just last year we were promised a foundation increase and they gave us zero so that's why you see it kind of flat there but then next year she is proposing 400 that caused us a little bit of a issue on last year's budget that we lost that money we kind of
weathered it and so now you know this budget is trying to address that and projections going forward and it wasn't just us it was all superintendents talking about that not getting that increase yes and that was kind of a last minute change too which was kind of unplanned for everybody and the green
line is the student enrollment as you can see it's been steadily increasing to about 2122 when the pandemic hit and since then it's been slowly decreasing so that's something we have to take in account as we look at our future projections is that a trend that's going
to continue and if it is we have something we have to address there was a lot on that screen even though it was simple there was a lot on there this is just looking at student counts it's not you know something we can really delve into it's just estimates at this point uh we're
going off the student service projection on student counts which is based on this falling we're roughly reducing it from what we had last year because of the 350 plus kids or 380 plus kids that we lost and just through the mathematical side we're looking at roughly about a 68
student increase over last year just but just based on the foundation loans uh 90% comes from our fall count and 10% from last year's count so our last spring account we just did is the 10% for next year and then the fall makes up 90%
wages as you can see here our current contracts are settled at 2% plus up to 2% for any foundation increase and right now using the governor's proposal of roughly about $400 increase they'll roughly get a 4% increase for next year
that's what we're planning for in our budget assumptions obviously we won't know that until the actual foundation allowance comes out if the if they decide to do the switch like they did last year and give us 0% then it would be a 2% increase so but right now our budget assumption is that it's going to
be more than the 2% right now it's roughly just under 4% so they would get the full 4% for next year and looking at our most likely scenario i won't go through all the details here we'll go into it more next may but we're trying to see how what we
have to do to balance the budget uh looking at the 68% 68 student count increase we know for right now that our fi our health care cost is only going up 0.2% roughly estimating about 50
retirements and a foundation across of 392 uh we're still looking at an operational deficit of roughly $6 million that we're kind of going through right now to look at different options to see how that works does $6 million really scare me that's only 2% of our budget so it's not a lot but again it's
it's it's changes that we have to work through discuss and make sure it makes sense for us yes yes we need to discuss that uh i i i don't i wouldn't support just keep taking money from the fund balance every year so that's that's going to be a discussion at
the finance committee and correct we need we will have a finance committee next before our next discussion there because if we because you see what direction that's going fund balance i'm not happy about that i'm sure most of us are involved so yeah but those are the discussions we're just starting them now because i get it it's it's a very
dynamic process we have a good model to kind of go through and look at things and we'll have different options and as i work with our administrative team we'll put that in our board briefs of some assumptions we're working towards so you have a better idea so it's not going to be a whole surprise to you by the time we get to may i'm just planting
seeds i'm not questioning you i'd never question you i saw you die at a volleyball a couple weeks ago this guy's nuts i go up to stop the ball i was short i come down all of a sudden i get out of his way he goes in diving i'm like "oh wow." well i sent him for me because i
was at the conference so you wouldn't have dove he did so but again but there's a lot of options no decisions have been made you know obviously we very value our staff so we would not look at layoffs you know so we're trying to figure out how that all fits and what's the ups and downs that we have to
consider thank you so even with the retirements we're still yes $6 million correct and part of that is for last year you know because we didn't get our foundation increase the the last thing we want to do is interrupt classes during the school year so now we have to
look at what we had to resolve from last year and the assumptions this year and that's the number we're trying to work towards and some of that was planned last year because of that we didn't want to disrupt when it happened and then we had those students that came after count day so we decided to absorb it into this year good all right so if we're looking
now this is our student data um thank you to david went all the way back to 1935 you probably have never seen that so i wanted to share it with you just so you would have that data so back in 1935 we were only 9,400 kids and you can see
that in 90 1954-55 we got up to about 21,000 all the way up to 22,000 stayed there for a while and back in 197374 we dipped again and then we've slowly kind of climbed back up there again we're in
21 22 area we're over the 20,000 you know range and now we're starting to see the dip again so again you know any reference from there a lot of things have changed in 50 years we don't see we'll see the same pattern but i know student services takes into our current
enrollment trends birth rates they go into a lot of detail to kind of expect where we're going to be i thought it was a good historical lesson just to see where different schools have been over that time the little grant on top you'll see is our green line is our enrollment
the multibar chart is our staffing so you can see where our staffing is actually has been below the actual total staff line that's not unexpected because our staffing and student counts are very low for our class sizes so those are the things that we're going to be working on
and discussing just wanted to point out trusty petrickoff and i spoke to you about last meeting is uh even though we're getting new students those numbers the total numbers are still dipping correct that's that's something that's very concerning yeah and we've been seeing a decline in our secondary schools so those are the things that we
start looking at and now you know so i'm not surprised also see our staff increase because we've gotten a lot of grants and so a lot of those grants are dealing with mental health you know and those kind of things so we've hired more social workers more counselors but again the model we have to see is what kind of
model can we sustain going forward at least have a plan to address it so if if we do dip into fund balance it'll be a planned approach but obviously we're not going to stay there the long-term plan is to get that back into a more common approach but again you know we're a service industry so we don't want to
lose our good teachers any teachers we have good teachers here we don't want to lose them so we have to figure out how to get that on there without impacting people's lives as much as possible all right so the other couple of things um infrastructure is something that
we're going to look at you know as part of the staffing adjustment our esre funds are done or we're finishing up the henry ford college building so a lot of our monies in capital projects have gone down so it becomes a pressure point for us now is how we're going to address infrastructure i've told you before that
we don't have the funds to maintain it as we did before because we took a lot of the reserves we got during esser funds and addressed our buildings but now we're at the point where the infrastructure is going to become a more and more important part and we don't want to have conversations that we just can't do things so we have to have a
plan and so at some point you know with our work from quinn evans working on our buildings and the historical aspect and what to do with them they're finishing up and they're pretty much ready to meet with the board again and share their findings so at some point i would like
to have another maybe an hour work session with the board again to get their report from them make sure you have understanding of what they did and how they went about it to come up with their recommendations um understand they have a pretty good model that we could share with you that you can pick and
choose different items and it gives you the bottom line so that's something they so we don't need to address that here quickly just so we kind of keep that process moving and we have the other company ready to go out to the public so it'd be good for the board to understand what the findings were from that process
give their feedback to the next group that will go out to community engagement to make sure everybody's on the same page and that you have the information you know what it says what it means to you and give what feedback you can to the company to go out and solicit information back from the community so
that's something we need to plan is that something that we need to do um for our next meeting perhaps preferably because we'll have our budget hearing in may and it'd be nice to be able to put some kind of input into that of where the budget's going to deal with that and
what kind of impact we might have to have do we do that in between meetings yeah you can do it anytime you want to you know you could do it it's about an hour discussion so we could put it as a discussion item i know that will drag the meeting a little bit longer but we can think about
even starting the m the meeting earlier we will have to have a finance committee prior to that also though on the bond should be a separate meeting an hour there's going to be a lot of questions that question discussions yeah and i i i don't like meetings to be boxed as
well so um we'll think about that yes yep i just want to bring it to your attention that they're ready to go and let's let's get it on the schedule because it takes time to schedule uh just on the budgetary process you can see we're we're moving along on our side um we don't have any tax data yet so
talking about millage rates we have no idea where the tax rate is going to come in at just yet um like i said the budget hearing is in may so we have to put that in the paper at least 7 to 10 days prior to the actual meeting we have our budget hearing the public will have opportunities to you know discuss it or
ask questions and the formal adoption at our meeting in june and again just want to caution everybody it's going to be based on assumptions and estimates because we won't have any final data to actually base our true budget on any questions
i know um in the finance committee you discussed the worst case scenario and best we'll go through it all best case worst case and most likely case question you mentioned earlier the esr fund at the state level um is still
available i thought there was a change of uh where the dates yes we spent all our money this last september so last september 30th of 24 we finished spending our money some districts got an extension for an additional 12 months
that is the one that got caught about a month and a half ago from the white house saying "nope we're not going to offer that money we're not going to you're not going to be able to ask any reimbursements whatever you got to that date it's done." so we were not part of that 42 million that was taken back for but it doesn't impact the state with the
esre fund that you said they still have uh well that was the hr funding that that kind of flowed through for mental health grants that was eliminated we have some we had some esr funds for homeless but that was also spent at september 30th so right now we have no esser funds available okay
and again always reach out to me you have individual questions you know i'm always open i can dig into the weeds as far as you want to go all right thank you uh next item please the next item is the
2024 2025 board goals by president mos thank you this should have said 2025 2026 but notice years 242 okay um that's we we actually set the goals two
years back and they span two years but um david can you get that on the screen please yeah thank you thanks so um i combined all of thank you for thank you to all of you for submitting the your goals so i combined all of the
goals and um to two buckets that i felt those are the categories so feel free to uh tell me if your goal is missing or if you need it to be your own separate goal um there are two slides uh the first
slide has uh five categories and the second slide has two categories so if we can show the first slide is um many of you and i i want to say one thing before i delve into the different categories is
that i believe all of us feel strongly about all of these goals but i did limit everybody to three goals so uh feel free to say i want to move to another goal if you want to change that but i i do feel
like i do care about all of these issues it doesn't mean necessarily i don't have my name on it i don't care about it it's it's there because we're we're we want to limit those two two to three so let them know it's in the folder too uh it's in the folder too so it's in
your so uh the first one was bullying prevention um trustees uh barry watts and demio uh mentioned it in their submissions so uh that's one of the goals that we have another one is community engagement
trustes darren bersio myself trustes zar um echoed that we need uh to improve collaboration and dialogue between the board administration staff and parents um literacy is a huge goal for all of us
but the trustees that have presented it are trusty barry al jahi and trusty zar i i put in the percentage myself if you were wondering uh because that was kind of my one of my goals and i thought i will tag it along but it's um it's
something to put up there as something that we would like to see as far as the the school year uh 2520 26 uh trustees uh peterskov myself uh
talked about student discipline we would like to decrease the amount of suspensions um and and solve the ab absenteeism issue that we do have especially at the secondary level um and then i do have my
individual goal uh that i have talked about that before about classroom tech use to reduce that and i put up a percentage um it's arbitrary it's not really something that we can quantify i
believe but i i just put it there so it could be a smart goal uh for the second slide david um we do have uh trust jahi bringing up a fiscal responsibility and transparency and u board conduct as a
goal as well from tusree trustees watts and petkov focusing on restoring respect and establishing acceptable behavior a review of the school board governance code of conduct in the bylaws and and then the guidelines and i believe the
policy committee might be starting to work on that so um i left the last one blank for any other goal that you feel strongly that needed to be addressed so watts so mine was um not board but it
was going back to um positive if you go back to one slide sure uh under student discipline and positive school climate so i was referring to um that okay so um i can put you in there and
then any other uh additions um or if you want to tag yourself on any of these goals i don't not having access to i just requested access i i might have i might have feedback after i look at it
sure and we will have these goals um placed in the board briefs so you will have access to them um if you want to make notes too so you can do that as well i'll uh i'll approve your uh access requests right now i'll put these on
standing item on the cabinet as well perfect thank you any other questions the only reason i said that is uh for me i think maybe you combine a couple of things that i had which i i could see that
uh with the fiscal responsibility and the transparency which is the data component being able to see data um having data available and and present it not to such
as um whether it's weda whether it's uh you uh different things we want to be able to have dashboards where data is available so if that's what you meant then you have it but if that's not if that's not the case then you don't have it sure so
um we'll include that as well any other gold okay perfect thank you so much um we will have those um as standing items on the board briefs and the administration will have access to
those uh next item please next we move on to the board of education business starting with acknowledgement of correspondence we did receive a lot of emails uh from the community u about range of issues uh but i'd like just to
um call out two events that are coming up there's the autism walk uh walk-in at os smith i believe all of us uh received that email um from o smith it's
happening on april 24th and then uh dft uh president miss kathy martin sent an email about uh teaching with representative stalib about uh the education cuts um so that's happening on
april 21st and it's a virtual meeting so i encourage all of the trustees to attend and ask questions um and be engaged with our congresswoman uh president mos there's also an autism walk at whitmore bs on
the 25th at 2:30 in case anybody couldn't make the other one there's another one at that school thank you friday i can sign it in the calendar too yep next item please next item is board member committee and organization reports no policy met
before trusty barry yes policy committee met earlier we spent the majority of our time uh discussing the student identification mear uh we left it at this uh dr malik was going to check with legal what we'd like to do and mr bob
addy and mr mashur's got a little bit of homework to do to follow up on things so we revisit it we also talked about the guideline of the policy the new guideline on cell phone search protocol for administrators was a good
discussion miss anything great thank you uh does finance committee meet before us i'm sorry next month is their meeting okay great thank you any other meetings or reports you know speaking of finance uh we can uh
also put on the agenda the banking services discussion and legal services for the next uh agenda please thank you thank you next item next item is board member and superintendent commentary commentary trustees well i just want to
um i want to to build on what mr mustin talked about a little while ago is that april is arabamerican heritage month and we are here in dearbornne as the uh unofficial arab-american capital of the country and uh with a very robust student body from the arab-american
community so um i encourage everybody this month um to celebrate the achievements of our students teachers and administrators and all staff members who are arabamerican um as we see all the time dearbornne is a
frequent uh target of political attacks and precisely because of who we are in this community so it's important that we all stand up for each other and this month is as good a month as any to learn more about our community learn more about the achievements of people from uh
our background and the achievements of great arab americans in our community which if we talked about it we'd be here for a week naming all of them so uh just want to say that on the record for everyone and um i'm proud of everyone on
this board for always being aware of celebrating the amazing diversity of our community absolutely thank you any other commentary uh next item please request for information and or future agenda items
trusty barry dr mgo as i was listening to mr all speak earlier i'd like to see a graph of uh instructional non-instructional dft and exempt employees both uh percentages and actual
dollar amounts we don't have to go back to the 90s 2010 and onward will work mr wall if you have any questions we'll talk about it later okay sounds good thank you any other requests there are no more requests we can move
to the next item please next item is future meeting dates monday april 28th 2025 the henry ford college policy committee meeting will be at 6 p.m at the administrative services and conference center in the cabinet conference room and monday april 28th
2025 the henry ford college board of trustees meeting at 7 p.m at the administrative services and conference center in the rosenol boardroom thank you and this meeting is adjourned thanks