Okay. Good afternoon. This meeting is now convened at 01:05PM. I would like to ask that everyone please silence your cell phones. A quorum of the board members is present in the board auditorium. Our first order of business is to hear from speakers to agenda items. Public comment during school board meetings will only be available to those persons who have signed up to speak prior to the meeting time per current protocol. Verbal and other disruptions, by persons during the school board meetings are not acceptable as they inhibit the board's ability to connect business and the public's ability to observe those processes. Persons who participate in such behavior will be given one warning,
and if the behavior is repeated, they will be asked to leave the meeting. Today, we have eight registered speakers who will be limited to two minutes each per board policy. We ask that you please stay on topic and refrain from naming individuals, especially students, as their identity is protected under the law, but you may name your own child. I ask that you please respect our procedures and the other speakers, and end your comments promptly when your time has expired and the timer rings. We will start with public official, who I understand mister Savant Moore is. Oh, there he is. Hello, sir. Joining us via Zoom. Mister Moore, please go ahead when you're ready. Good afternoon.
Oh, wait wait one second. Sorry. We can't Can you hear me? Can you hear me? You can hear me? Alright. Board of management, the decision you made was important to keep Zoom because today, my tire blew out, and I was able to speak today. So know that every decision you make are important. The budget is a very important one. May the budget reflect that we have a goal of addressing the gap with math and reading for all students. Those who are into real estate understand leverage is important for growth. I'm a stock man myself, and margin is important on my end.
Let's not forget the leverage for public education, our teachers. Regardless what happens in the legislator, let's make sure our teachers are compensated. Let's make sure that we choose the best health care option for them. Let's make sure that the public doesn't have to hear bad news about a school or former personnel from the newspaper first. Let's fix the broken system and in our budget, have children's safety at the forefront, especially against anyone with ill intent towards our young girls. This weekend is always a tough one for me. I've lost at least two friends on every deployment. So my life goal is to honor them by doing the right thing in whatever
position I'm blessed to have. I challenge you to do the same. God bless you, and God bless each ISD. Thank you, sir. We'll now hear from remaining speakers. I'll have a list. Although, if you're number yes, ma'am. Come on up. Good afternoon. Tracy Liszewski speaking to the budget workshop. Last year, Q and A was provided to the budget to the public for every budget workshop. Despite assurances from the Board President, we have been told that Q and A will not be published for any workshop. The lack of transparency does not facilitate trust. With only a currently proposed $55 increase in state allotment,
will PUA schools still receive the $75 that was built into their budget? And if so, what is the impact on our fund balance? If teacher raises are only coming available via HB2 dollars why are PUA schools being required to increase their funding into the HISD salary pool? They are paying for an increase in salaries that will not be seen at their own campuses. This PUA tax is putting an unequitable expense burden on PUA schools and these are the same schools that educate close to 50% of our Title I students. Why is administration basing the ADA and therefore campus spending on Cycles III and IV
when, as stated in the April workshop, HISD receives spending on Cycles I through IV? What is the value difference between what we receive versus what will be allocated and where is the remainder of the money going? Finally, with so much still in question for how HB2 will impact the HISD budget, it seems incredibly aspirational to hold a budget vote on June 13. Another workshop should be held so that the public is aware of how the bill will impact funding at our schools. Thank you for your time and your consideration. I encourage you to promote transparency and insist that all budget Q and A is made available to the public.
Thank you. Thank you. Our next speaker, number two, Doctor. Locke. Doctor Ruth Hoffman Mlock. Stanley Milgram's 19 60 three experiment was designed to see how far people would go in obeying an authority figure who instructed them to act in conflict with their conscience. Participants were told they were studying the effects of punishment on learning. A man in a white coat, a fake authority figure, instructed them to administer increasingly strong electric shocks to a man in the next room every time he made a mistake recalling a list of words.
Even as the screams grew louder, the participants kept shocking him. 65% went up to the maximum shock strength, and a % of them continued past what they believed was very painful. This board has a lot in common with those experiment participants. A fake expert superintendent continues to insist you approve his financial and operational policies, yet at every board meeting, you hear the real harm these decisions are inflicting. At the May meeting, a little boy wept as he told you how important campus wraparound specialists are.
Multiple news outlets have reported the failures of third future schools under this superintendent's leadership. Dozens of actual experts regularly tell you of his dishonesty, manipulation, and lies. Just last week in a Chronicle interview, he falsely claimed that only 26 or 27% of the teachers left the district last year. The real number was 42, over 42%, and that all students lived within ten minutes of a Sunrise Center when many live 18 miles from the closest one. Still, you keep administering the punishment. Lone Star governance may limit your options,
but it cannot dictate your conscience, and it does not supersede the law. The vision and values of this community are not being represented or honored. You can stop the punishment by declining to submit another superintendent certification waiver. That inner voice that keeps telling you something isn't Thank you, ma'am. Next speaker? I'm the reverend d Scott Cooper. I'm the associate minister at the First Unitarian Church of Dallas. I imagine nearly everyone in the room has had to contend with working on a budget, and it it's not an enviable task.
So thank you for your work. What did I say? You said Dallas. I said Dallas. No. I used to go to the church in Dallas. I I'm, First Unitarian Universalist in Houston. Thank you. There are many ways to take something from someone. A house fire or tornado may take away years of memories. A mugging may take away today's wealth, but denying the most vulnerable children the services and resources they need to thrive takes away their promise of a good future. I hope you agree that to provide the most needy children the tools they need
to embrace a successful future is consistent with the vision and values of this community. Campus wraparound specialists are able to develop relationships, build trust, and identify needs in a way impossible to replicate from another location. They build trust by noticing needs and providing support in a nonjudgmental way. Because that relationship is developed, it is more likely the family will receive the comprehensive social service programs that they need. Those relationships will not develop if the specialists are not there in the school.
These underserved families often don't have the resources to travel elsewhere and are often reluctant to ask for help from a total stranger. The caring people they see each day in school are not strangers. Your vision statement reads, the Houston Independent School District empowers students to become critical thinkers, visionary leaders, and active contributors. Thank you. Thank you, sir. Next speaker. You see him. Amy Maddox. I'm an HIST parent for eight more school days. I have my own case of senioritis,
but I thought it was important for the people coming after me to come speak today. Much of what the community raises to you is not in your lane, and I recognize that. But by law, the budget is in your lane unequivocally. You represent the HISD community and we need you to ask hard questions publicly and answers should be public, we should have data and they should be fact checkable. Why is there no Q and A for the most important job that you have? Few questions that I have. How does the lower than expected basic allotment increase affect this budget?
How will HISD pay for the legislatively mandated salary increases? Will it be a PUA increase? If not, what is the effect to schools? How is that going to work? Will you have a June workshop to address the budgetary effects of legislation? How does the removal of the local, not the state, but the local high school allotment affect each school's budget? Why were the average daily attendance calculations changed and what is the budgetary effect on that by school? How is the enrollment decline's effect on the budget being distributed? Where is the data showing that the enrollment client is either a demographic or perception
problem and not a result of parents' actual experience, especially given that the decline is greater than HISD predicted? It's greater at NES schools? And are we going to figure this out before it is too late to have a snowball effect on our district's budget? How does having nearly half of the schools under the more expensive NES model affect the budget for the PUA schools given our scarce resources, especially when there are relatively equal numbers of low SES students in both schools? Please listen to the community. They are the people who care about the kids in this district and can help
you ask good questions. Ask the questions that need to be asked. Next speaker. Hello. My name is Ann Eagleton. Both of my children are graduates of HISD. And, I'd like to remind you that the devil is in the details when it comes to budgeting. I have a couple numbers I'm gonna give you that's straight out of the budget book. Did you realize that the finance chief financial officer had a payroll budget of a hundred and $50,000,000 for this year. I'd like you to, compare that to the chief of facilities maintenance and operations.
They had a payroll budget of 72,000,000. Just curious why the finance department would need twice the amount of payroll money. It's not like they're driving out to schools and fixing AC systems. There's a real reason why all the AC systems are broken. It's because you don't have enough people fixing them and maintaining them, and yet you throw up your arms and you blame the voter for not approving your horrible, horrible bond. You need to allocate money where it's needed. The finance department doesn't need a budget that is twice as big as the main
as the facilities department. That makes no sense. I think another interesting one is the $53,000,000 payroll that the chief of organizational effectiveness has. Does anybody even know what that person does? I I mean, I'm asking you seriously. What do what are they doing with the $53,000,000 payroll budget? Who's doing it? I mean, they're supposed to be reforming the bus fleet. You literally could run the bus fleet for a year on their payroll. This is ridiculous,
and I want you to pay attention to the details. Not be floating up at 40,000 feet thinking you know what's happening in each individual house below you. You don't. You need to dial in. Thank you. Next speaker. Is that all of our speakers? Thank you. Sorry to move my face. New knees. Still working on them. No worries. Thank you for your service. Across HISD, even in brand new buildings, the AC is failing in record numbers. These schools didn't have HVAC issues like this before the takeover. So what's changed? It appears Miles treats the $2,200,000,000
budget like it's a game of monopoly rather than the sacred trust with the public. Last May, Superintendent Miles laid off 50% of HISD's maintenance staff. That's getting rid of two eighty of the four eighty staff and more than a quarter of custodians and more layoffs are coming. The people who keep our buildings running are gone. But the number of central office staff making over $150,000 has ballooned by 250%. Why is it so bloated? Why is it so overpaid? So teachers get spot observations every day. How many executive principals does it take to walk into a classroom?
While he expands his C suite, Miles has eliminated the people who support our kids, wraparound specialists, autism support teams, even every substitute in NES schools. What happens to learning when it's 90 degrees in a classroom? At Wheatley, on Monday, the AC was out all day, they didn't close the school, and a child was hospitalized from the heat. The fix, just water in the chiller, a simple job, one I can't do. But if Miles hadn't cut the people who could do it, that's why plant operators have a boiler license. Is he planning to ask English lit majors to fix our chillers?
Before the takeover, emergency work orders were completed the same day. I talked to numerous current and former principals. Nonemergency ACVAC and plumbing took two weeks, now months. We needed a bond. We still need a bond. But until you help build trust, tell the truth, stop funneling money to vanity projects, Our kids will keep sweating and suffering and inequalities worsening by the day. I thank you for your service. The next speaker, maybe Ms. Longoria? Hi, good afternoon. I'm Brooke Longoria and here today to speak about the budget and continued cuts to
our budgets regarding library services. You know, when we first started in HISD, our school didn't have a librarian. And then under superintendent Pals, we gained a fantastic librarian, and it was wonderful and it was great. And, now we're back to not having a librarian. And in addition to that, you know, like, the older my children have grown through HISD, the more I've noticed that they've not been reading full novels. And, you know, I looked at the curriculum, and I'm like, oh, okay. Well, it's not a part of the curriculum. It's not gonna happen at school. This is something I need to do as a parent at home. So I Google how many books should a child read a month?
How many books should a nine year old read a month? Because I'm not an educator. I don't know. AI starts off with, in addition to the novel studies your children are doing at school, every single article I read reads, is it be like, states, in addition to the novels your child are reading in class with their teacher, they should read three or four at home. Like, every article is the same. And, you know, it's one of those things where you're like, in my life, if everybody's telling me something and I'm the one off, I pause and I think, what am I doing that everybody else thinks this is this is wrong?
And and I don't know how many more people can tell you that it's wrong to fire librarians, that it's wrong to not invest in full novels, that we are doing a disservice to our children. I brought the books that my kids read this month at home. We read 16. We read 16 books between my second grader and fourth grader, some some short books, some long books, some they read their own, some graphic novels. And it was work. And and I know that parenthood is work, but I would like some help. I would like some support.
I would like a trained educator teaching my kids things that I Thank you. That completes our speakers? Okay. Okay. We will now conduct the hearings that are scheduled for this meeting. There is one. What is the procedure to consider the dispute resolution of Patricia Franzen, which is a level three dispute resolution hearing. Miss Franzen, she's not attending? I'll be representing her. Okay. The purpose of this meeting is to consider the dispute filed by Patricia Franzen, former teacher at Bonham Elementary School. Hearings involving complaints against district employees are to be held in closed session unless the
employee who is the subject of the hearing requests an open hearing. If both parties request an open session during the course of this hearing, the board may go into closed session to consult with its attorney under the terms of Texas Government Code, Section 551.071. If any board member wishes to seek the advice of counsel, please let me know. For the record, Kevin Lungowitz with the Lungowitz Law Firm, P. C, representing Patricia Fransen. Sorry. That's you? Yes. Okay. Is president Paul Lamp with Spalding, Nichols, Lamp, Langlois representing the administration as president along with Katasha Woods who is the HISD general
counsel. Mister Lungowitz, would you want to proceed in open or closed session, sir? Open's fine. Okay. The issues before the school board are whether board policies and administrative procedures were correctly applied to the grievance and whether the administrations violated those policies and procedures. Mr. Franzen, since you asked that the board hear this matter, your representative or you will go first. I'm sorry. Mr. Longwitz, your, client is not here. Mr. Longwitz, you'll be allowed a ten minute presentation, and you can split your time if you'd like. And Mr. Lamp will follow your presentation. After deliberation,
the Board will render its decision. Are there any questions about the way the dispute hearing will be conducted? Thank you. Mr. Longwitz, would you like to split your time? I will reserve remainder of time for any rebuttal. Okay. Very good. Then you are welcome to begin when you're ready. Members of the board, Kevin Lungowitz, here to represent Patricia Franzian, pronounced Franzian. This case is two school years old, so I'm glad to finally be getting this matter in front of you. This started at the beginning of two school years ago, August 2023, when my client decided to take the offer from your payroll or compensation department to
work as an teacher in an NESA campus. And she got the offer letter from your compensation department, on 08/02/2023 saying that she would make her annual salary plus a $10,000 sign on stipend. She accepted that offer, and we can see by the paperwork in the record, and I'm looking at the offer record page 76. And, by the way, the record I got process question. I don't see a clock running up here on me, and I'm okay. Thank you.
I didn't have a record that's paginated, so I'm just talking about the page number of the big PDF file that we were sent for the record for this case. I'm looking at record page 76. That's the offer from your Chief Human Resources Officer in the Compensation Department telling her she's going to get a $10,000 sign on stipend. On August 6, a few days later, we can see a letter going to her formality saying, Hey, you've agreed to take this job. Welcome. I'm recommending you,
rather, at record page 78, 70 nine, record, page 80. This is, I think, important. My client on August, a couple of days, a few days after the offer and the letter saying you're gonna you're gonna get this job, She says, hey. I have a question. I signed for the NES aligned school this year, and I'm gonna receive a $10,000 sign on stipend. When is that paid out? Are there restrictions for this stipend? She got no response to that question.
She sent that email to the compensation department, the exact same email address from which she got the offer and the other correspondence. No answer to that question. August, we can see congratulations, pleased to have the job. It's just more paperwork onboarding, page eighty one and eighty two in the record confirming, in fact, that she had accepted this NESA job as a teacher at the particular campus with the sign on stipend and the $2,000 training stipend. And all in this time frame, then she signed the contract on August 6.
So we're talking about so this offer started August 2. She's signing a contract August 6. All this paperwork and back and forth is in this four day time period in August of twenty twenty three. The contract is record page 84 through 86. And we can see on this contract, if I showed this to anyone in the room here, they wouldn't be able to see what position my client was hired for, what campus, how many days or months she's gonna work, what's her salary, what are her stipends. None of that are in the contracts,
and that's across the board in this district. You don't spell out the details in the contracts. You know where the details are spelled out. They're spelled out in the in the offers from your HR and compensation department. You have charged them to make offers to employees and to execute the proper documents. This board doesn't sit here and interview 10,000 people and parade 10,000 people in front of you negotiating the details and signing off. In fact, on the contract, you authorize your superintendent and administrator to sign the contract.
So you've authorized administrators to offer, make deals, bind the district. They sign a contract which is super vague. You're gonna be unemployed. Doesn't even say teacher, but we know from the HR paperwork, teacher, campus, annual salary stipends. It's a done deal. Well, life happens. In September, my client needs to resign from the district. Now she's in a binding contract with the district at this point. The district does not have to let her out of the contract. She asked to be let out of the contract, and the district agrees to let her out of the contract.
Record page 88. We've accepted your offer to resign. She's no longer an employee of the district as of September 2023. But the problem was she never got her sign on stipend, the $10,000 sign on stipend that was promised, because they tell her later when she inquires, you don't get it because you have to be an employee in good standing when it's paid out. Well, when were those guidelines and rules adopted?
They were adopted in October of twenty twenty three, the next month after my client resigned, several months after my client got the offer. When that offer came, the paperwork speaks for itself. It's a sign on stipend. She signed on. There were no rules or regulations, no footnotes on that offer about what you have to do to get it other than to do what? Sign on, sign your contract. You're gonna get the 10 k. She asked about it a couple days later. What are the are there any restrictions?
Got zero response from this district. And then her resignation was accepted. So the district had three opportunities to tell her the rules of the game. One, upfront in the offer. Here's your here's your sign on stipend, and here are the rules. Didn't tell her. Second, they could have responded to her email. Here are the rules. It didn't. Third, it could have said, we'll take your offer to resign, but you're not going to get the stipend. As long as you understand that, we'll let you out of your contract. District didn't do that. It adopts stipend guidelines in October.
So she is offered. She signs. She gets the $2,000 training stipend at the beginning of the year. She went through that, but she didn't get a penny of the $10,000 sign on stipend because the rules for that were adopted four months after she was offered the sign on stipend. In other words, the rules changed after she had accepted the deal, after she had a bound contract with the district. So that's it, and it's actually not that complicated.
She agreed to the deal to have a $10,000 sign on stipend. She signed the contract. She commenced work. She worked for a month. There were three times when this district could have clarified that for her, and it didn't. Now she wants the $10,000 sign on stipend just as a matter of basic contract law. Madam president, I'll reserve my time for rebuttal. Thank you. Thank you, madam president, members of the board. My name is Paul Lamp. I represent the administration today. In my time before you, I will first address why miss Francine's request for $10,000
doesn't make sense from a common sense standpoint, and then I will also address why it's also not supported by the documents in the record. First, from a common sense standpoint, miss Francine signed a one year probationary teaching contract with HISD at the August, August sixth of '20 '20 '3. And she resigned from the school district thirty days later. Even though she worked a grand total of one month,
she says the district owes her $10,000 for that one month of pay in addition to what she earned in salary. That's a pretty good daily rate, but it's not one that this district awards. She argued during the level two hearing that when she signed her contract, there were no rules in place stating that she wasn't immediately entitled to this $10,000 stipend. So what does she want? She wants to create the rules about how HISD is gonna award that stipend and
tell you those are the rules and require you to pay her $10,000. That's not how it works. The district's interpretation of its own stipend is that the employee had to still be employed when it was paid in order to receive the stipend, which only makes common sense. If you look at the administration's exhibit two, that's the level one decision that was issued in this matter, and that's exactly what it says. So, again, just from a common sense standpoint,
it does not make any sense for a public educator to work for thirty days and claim that they're entitled to an additional $10,000 for doing so. That's not what any rule said, and miss Francine doesn't get to make the rules. Now onto the documents in the record. I'm referring to the labels at the bottom of several pages that are labeled Francine one through, etcetera. So if you look at Francine page two, the HR department did send her a document referencing a $10,000
sign on stipend. And if you look at the bottom of it, it says, by signing below, I accept this final offer in the position and at the campus listed above. It's not signed. So this document, even if we were to consider this as some kind of binding offer on behalf of the district, His own client didn't sign it, and yet that's the document that she's claiming gives rise to her contractual entitlement to this stipend. So that's false. But also, this board, as you well know,
is the is the governing body that authorizes contracts. You either approve them yourself and execute them, or you delegate to the superintendent authority to sign contracts. You don't delegate such authority to someone in the HR department. So in addition to the fact that miss Francine didn't sign this document that she says entitles her to, $10,000, also an HR person doesn't have the authority to independently contractually bind the district to some kind of financial payout like that.
If you look at Francine pages 10 through 12, that's the actual contract she signed. It's a one year probationary teaching contract with the district. And if you look at paragraph six, it basically says, stipends aren't covered by this contract. Stipends are something separate. In the level two hearing, miss Francine and her representative said, I was entitled to this 10,000 stipend because I signed my probationary contract. Well, that doesn't make any sense because the contract language itself says stipends aren't part of
this. It also says in paragraph 16, this is the only contract between the parties. There are no other documents that constitute a contract with the employee. So, therefore and she says in her grievance document, this is a breach of contract claim. It's impossible because this contract, the only contract she signed, doesn't say anything about a $10,000 stipend, and it says this is the only contract. Francine pair page 14, that's her resignation document.
So she resigned thirty days after she became employed by us. And as mister Lundwitz said, we didn't have to accept that. If she would have left anyway without us accepting that, we could have filed a complaint with TEA regarding her teaching certificate. We didn't do that. In other words, we did her a solid by allowing her to leave after thirty days of signing a one year contract. Also, during the level two hearing in her in her grievance, she says,
again, I accepted this $10,000 by signing this contract. And as we've seen, that doesn't make sense because the contract doesn't refer, by its own express language, doesn't refer to stipends. So what are the takeaways? Number one, this board reviews whether the administration violated some policy. That is your review jurisdiction. Did the administration violate some policy giving rise to some relief here? That's not even argued in front of you.
There's no argument that the administration violated some policy. The the inquiry should end there. But if you go on and continue to review this matter, if you follow miss Francine's logic, she or any other employee could have signed her contract, resigned the very next day, and said, school district, you owe me $10. Imagine the ramifications of that. That's absurd, frankly. The purpose of monetary stipends is to reward employees for working,
not to reward people who sign one year contracts and then leave thirty days later. So the administration, for all those reasons, ask that you make a motion to deny miss Franzen's grievance and the relief she's seeking and that you vote in favor of that motion. Thank you. Mister Longwitz? You've got a minute and a half or so. Thank you. Mister Lance said that my client signed a probationary teacher contract. You can't look at the contract and know that.
That doesn't even say teacher on it because none of the details are in the contract. They're all in the offer letter. And the the the commissioner of education in a case called Kelly versus Marlin ISD in 2023 says, it's okay. Boards we know boards don't execute all of the legal documents. Boards rely on their administrative staff to make contracts with employees. And that's what happened here. Your HR department made this offer. My client accepted it. Mister Lamp says it defies common sense.
Well, what defies common sense is that this school district put out public notices on TV and in the paper and put your superintendent out in public talking about $10,000 sign on stipends and got hundreds, I don't know how many, thousands of applicants that wanted a sign on stipend, and you had no rules? There were no rules? Just a sign on stipend. When did the rules come? Three or four months into the school year after people had agreed to this offer?
That's moving the goalposts. That's changing the rules in the middle of the game. I like a good game of cards, but I wanna know the rules upfront, not after the hands have been dealt. And that's what happened here. You had three chances to clarify for my client when she was given the offer, when she asked what the rules were, and before you accepted her resignation. She's not gaming anything. She was upfront and put her cards on the table, and no rules were forthcoming until after she had gone.
When she signed, she said, I agree for the $10,000 sign on stipend, and we're asking you to grant her grievance. Thank you. Thank you. Are there any questions from my colleagues? Okay. The parties have completed their presentations, and it is now time for the board members to make our decision on the issues before us. We must apply only the facts presented in the transcript to the applicable policy or law and make a decision. If there is any dispute between Ms. Franzen and the administration as to what policies and or procedures mean, then it is the Board's responsibility to determine the meaning or application of the policies
and procedures. If the record of the level two hearings excuse me, the record of the level two hearings must support any action we take, that is if the record supports the position of the administration or the position of miss Franzian, we may bind accordingly. Is there any discussion at this time? Do any board members need to go to closed session? Yes. Okay. We will go to closed session. Under chapter five fifty one of Texas government code open meetings act subsections 551.004 through 551.089, should board final action voter decision on any matter considered in the closed session be
required, such final action, voter decision shall be taken at the open meeting covered by this notice upon the reconmeeting of this public meeting or a subsequent public meeting of the Board upon notice thereof. The Board has recessed to Closed Session at 01:45 p. M. On 05/22/2025. Okay. We are reconvening at two P. M, back in open session. You may have to log back in or at least I do. Mine died. All right. Okay. Let's proceed. Does anybody have any further discussion or questions? No? Okay. Then can I have a motion,
please? I have a motion, please. Yes, ma'am. I move that we deny Ms. Franzen's requested remedy of payment of the $10,000 sign on the stipend. Okay. Thank you. I have a motion by Ms. Linder and a second by Doctor. Cruz Arnold. Is there any further discussion? Okay. Seeing none, please vote. I vote in favor. Motion passes five in favor, four absent. A letter notifying both parties of the action of the Board shall be prepared and signed by the Executive Director of Board Relations as soon as possible. This hearing is concluded at 02:02 p. M. We are going to take a brief recess,
maybe five minutes or so, and then we'll be back. Okay. Are we ready? Okay. We are here on a Level three dispute resolution hearing related to the, grievance of Charisse Johnson. It's my understanding that Ms. Johnson has passed away. And so, Mr. Lungowitz, it's my understanding that you represented Ms. Johnson. Is that correct? That's correct. Do you have any, document or other information that would reflect that you represent the estate of Ms. Johnson in order to move forward with this dispute resolution hearing? No. I actually have no information that she's deceased other than what I've heard standing and
talking to people here today. And if that is true, it's not in this record, and the record is the only thing this board can consider. So my job is to represent my client to proceed with their economic claims today. Okay, sir. What the board, is inclined to do, is to because it's my understanding that she's been identified as deceased, which which would terminate the grievance in front of us, is to if you can bring forth in the next ten days proof that you represent, miss, Johnson's
dispute issue, with some reflection that you represent in her state or have authority from the estate in order to move forward with it, then we'll take that. Otherwise, this grievance will be dismissed. I well, I will object on the record that the grievance is dismissed. I think the board is considering evidence outside of this record. This is a two like the last case, this is two school years old, so shame on this district for failing to hear cases in a reasonable amount of time in a few months, not two years. Sir, we are in. No. So and we're here,
and I'm sorry. We've queued this up for two record. We've I'm sorry. I'm still talking. No, sir. We've we've queued this up for two years. I'm not out of order, and I wanna proceed. We need ten minutes before the board to state our economic claims. On a dispute by a person who's been identified as deceased, sir, until I have authority or some document that shows that you have authority to proceed on her estate's behalf or that she's still alive. So we're gonna postpone this. I'm gonna give you ten days to provide us with some documentation that reflects the fact that she or her estate have given you authority to proceed on her behalf
or her estate's behalf. And if that does not occur, then this, will be dismissed. Thank you. Okay. We are going to now, move to closed session. Okay. At this time, the board is going to recess to closed session under chapter five fifty one of Texas government code open meetings, accept sections five fifty one point zero zero four through five fifty one point zero eight nine. Should Board final action, vote or decision on any matter considered in closed session be required, such final action, vote or decision shall be taken at the open meeting covered by this notice upon the reconvening of this public meeting or
Board upon notice thereof. The Board has recessed to closed session at 02:17 p. M. On 05/22/2025. Okay. We're going to go back into open session at 02:50 P. M. So do we have any motions coming out of the closed session? Yes. I move that the Board approves the closed session personnel agenda, including specifically that the Board approves proposed terminations, nonrenewals of continuing term performance and probationary contracts and authorize the superintendent or designee to provide notice of same that the board approves suspensions without pay for continuing term and
probationary contracts and authorize the superintendent or designee to provide notice of same that the Board voids term probationary and performance contracts and authorize superintendent or designee to provide notice of same that the Board approves withdrawals of contract recommendations and that the Board approves issuance of final orders on contract terminations and nonrenewals as discussed in closed session, effective 05/22/2025. Okay. We have a motion and a second. Please vote. Okay, motion passes. Thank you. We'll now address our workshop topic,
the twenty twenty five-twenty twenty six District Budget. Superintendent Miles, you have the floor. Our fifth and final Board workshop before the budget presentation in June, on June 12. And so I think we'll have not a lot of new information for this budget workshop because it's as we get closer to the budget, we're still doing the iterative process. And last time, we reported on the legislative session, which is still in flux a little bit. We found we heard last night that the Senate and the House came to some
agreement, but they're on the floor still today debating. So we'll see. But I'll point those things out as we go along and spend most of the time just answering questions. So our outcomes for this is give you a legislative update and then do the budget summary. And here we are on the fifth one. The time line, we're still right on time, getting ready for the June budget presentation. Our goals and priorities are the same. This year, we tried to spend a little bit more time making sure we address sustainability. And still, even in this iterative process towards the end of the legislative session,
we're still trying to keep cuts as far away from the classroom as possible. I can talk about that in a minute and prioritize our resources based on our goals. I put this up again because it's important to note we're not done. In any legislative session, especially in this one, legislation will impact our budget pretty considerably. We did go through budget assumptions methodology. I'll point out the differences there. So all along, we've been adjusting the budget and that's why numbers change a little bit, and they will again on June 2.
All right. So the legislative update is that House Bill two was introduced. The Senate then wrote their amendment to that or what they call a substitute to House Bill two, and that's on the Senate side. Read last night that they came to some agreement. Moe Casey and some other lobbyists put together a summary of that. That is still being debated though, it's not been signed and then it has to go to the governor. But for the most part, it says the following. The legislative update is this. The basic allotment,
which is the main revenue stream that the district gets, basic allotment times ADA, times the number of kids you have, that's their main source of revenue, increased only slightly to $55 per student if it stays that way. But that's where it is today. And remember, we had said earlier that it was going to be, we had estimated somewhere around, somewhere between $2.20 and $2.50. At the same time, we thought our entitlements would be about the same. It looks like the entitlements would be better than that. So just based on basic allotment and entitlements,
we feel pretty good that we're going to get close to our original budget assumption. The entitlements are increased through special education, through safety and security and through some other things like TIA, teacher incentive allotment. If you go over 175, those sorts of things are being increased. So we feel good. The other big thing in legislation, which is pretty expensive, is Senate Bill 26. Senate Bill 26, you'll recall, is the Senate bill that wanted to increase salaries across the board for all teachers,
Chapter 21 teachers. Senate Bill 26 was included in the amendment or the substitution to House Bill two. So what that means is the Senate or the House and Senate and House Bill two or the substitute to House Bill two will provide some money for increasing teacher salaries. So the exact amount, we'll have to wait and see. And then there's other legislation that will allow districts like Dallas and Houston to be more flexible in how they spend or how
they raise teacher salaries. It has to be based on performance. So if the legislation passes, we'll look for the fine print and then we'll bring it we'll give you a briefing, Board members, on how teacher salaries will be raised. But that's in the House Bill two substitute. It doesn't really increase our fund balance that much. In fact, the way most districts will have it, it won't increase it at all. And then Jim and I were worried about the unfunded mandate because it didn't provide any money for benefits. So So you raise everybody's salary, but you don't give the district money for benefits.
That's an unfunded mandate. Turns out, it looks like they will address that in the substitute bill for House Bill two. Again, I know I'm throwing a lot at you, but there's a lot of footnotes and qualifiers. So this is just general, don't buy property based on this information. It may change and in fact likely to change a little bit. So that's it. Those are the big pieces of legislation that might be different. Still, having said all that, we feel pretty good about the bottom line,
which we'll talk about in a minute. One last thing to note though, remember, we raised school budgets a little bit. Remember, dollars 75 per kid because $2.5 times 0.7 times 0.4 equals 75. And so when we did school budgeting, we already increased the $75 per kid for every school. Regardless of what happens in the legislation, we're going to keep it that way. We're not going to go revisit that. That would just be really tough for schools to adjust really quickly. They might have to decrease the teacher or something,
and across the board, that would be too much. So, they will have that little extra money anyway regardless of what happens on that basic allotment. Keep that in mind for next year though that we gave them more than they were entitled to this year. All right. This is a summary. These are some of the assumptions we made. You'll see what's changed on your screen is the taxable property values from last time because three weeks ago, we got the actual assessed valuation. So that's why that number is more accurate.
Remember, they will change every month or so, right, Jim? So that will change again, but this is the latest and it's different from what you saw before. This general fund revenue side on the revenue side, we keep adjusting a little bit and you can see we adjusted the change in revenue a little bit based on what's in the legislation, but also the assessed valuation. We're making some assumptions about federal monies. We already know that there are some things that will be a little bit more costly. And then the other sources and transfer and Jim,
what's the biggest part of the other sources and transfers in? In 2025, of course, it was the hopes of selling $70,000,000 worth of property and we know that, that will not happen. And then for next year, we feel that a lot of that transfer in is going to come from some of our other funds that we're able to move into the general fund. Okay. So as you can see that that's because we didn't sell property. That money is still out there,
though. That property is still there, and once we sell it, we'll go right back to the bottom line. Anyways, that's our general fund revenue for on the revenue side for next year. And on the expenditure side, you can see we're, continue to try to hone and decrease expenditures. We're about done with that. I've said all along, it's an iterative process, and we've been trying to find savings. So the department's budgets have, on the whole, have been cut $71,400,000 That's a combination of people and purchased services.
You can see the PUA and NES schools. This is not much different than it was last time. Most of that is due to enrollment decrease. And then recapture, we won't have to pay recapture, we believe. So that's why it's a cut to the expenditures from last year to this year. So all total, dollars $106,000,000 cut in expenditures over this year. So, this is the bottom line. That bottom line there is we'll most likely end this school year,
the fiscal year 'twenty five, at $8.00 $2,000,000 fund balance. Next year, and this again, this is a number that will probably change hopefully to the better, we think, you have $746,000,000 So we will be short or in deficit of somewhere around $54,000,000 And I think that will probably change even before we get to you in June. It'll be even a little bit better than that. But let's see what the legislature does first before we can be definitive in either
of those numbers. Overall, we're feeling pretty good, though, that with what we saw yesterday, we're going to make it. Some of you had some questions some more questions about NES and PUA. So, let me just walk you through this quickly. Didn't want to give you way more numbers, which we could. So you see on the top chart the enrollment. So you have more kids in PUA schools. That makes sense. There's more schools in PUA. And NES schools, even at 130, have some small schools too.
The base funding all in, as you can see there in the third column, dollars $556,000,000, dollars 5 70 5 million. Dollars So, the base per student just in the all in cost is what you see there, dollars 8,566 versus $6,000 but I said last time that most of the difference between the per pupil cost in NES and PUA is teacher incentive allotment and the salaries I mean, the salaries for the teachers and the teacher apprentices and learning coaches. There's one big one,
though, we didn't talk about, and I just I asked that it be put in this chart, and that's SPED. So SPED is not different because of NES and PUA, meaning NES do not receive a SPED a lot more than what the PUA gets. What happens here, though, is that the SPED students in the NES schools have higher needs and are more life skills. There's a higher percentage of life skills students. So, the special ed cost per student is higher.
And you can see that right here considerably higher. So they're percentage wise more SPED students in NES and higher need SPED students in NES. There's no additional subsidy for NES because of SPED. You follow me? Okay. So, then the bottom chart shows the other differences. So SPED is the one difference. You see that in the the first yellow or gold color. And then teacher apprentices and learning coaches amount to another $12.68
dollars per student for NES and then the differential in teacher salaries. In other words, NES teachers get paid more. They have higher salaries. That differential is $660 per kid. So the total for just those three categories, SPED, teacher apprentices, learning coaches, and the differential is, per student, winds up to be $7,011 dollars per student for NES. In other words, if you took out those three gold columns, you'd have $7,011
per student and $6,386 Let me say that one more time because I may have confused you. The overall difference between NAS and PUAs right there, dollars 10,635 versus $7,103 The majority of that though is made up of those three gold columns. And so if you subtract the three gold columns from the $10,635 I hope I'm doing this math right The total per student is $7,001 The total per student for PUA is $6,386
making the point that most of the difference in salary per student allocation is those three gold columns. All right. Last thing is maybe Before we get into that one, I'm going to go to questions. Okay. Mr. Vavon, go ahead. Thank you. This is very helpful to understand the cost and allocations. I did just have one question regarding the makeup and the design of NES structure. And so I'm thinking about cost allocation specifically around the unit and the unit makeup and where those costs are allocated to
year over year. It seems like in prior years, it may have been allocated with NES, and now it seems that it may be separate. But I just want to make sure I understand how the unit cost specifically, are allocated throughout the district. Yes. So the unit concept is not dependent on whether a school is NES or PUA. So the entire district is divided into four divisions. And some divisions, like the North Division, had, percentage wise, more NES campuses because they had the highest need kids. Each division,
regardless of NAS or PUA, each division has three units, and each unit has two feeder pens. So, the units are designed where there are two sides. One is instructionally and one is support. On the instructional side, units have executive directors that oversee six or seven schools. And they look at the spot observations, the IRT, everything about the school. And they oversee and coach principals. That's the instructional size,
and that happens throughout the district. So the costs are are similar to to to schools, not NES, not PUF. Just on the support side, the same thing. There are, HR representatives, talent managers in each unit, and they help the teachers in that in those schools. And that is throughout the districts. There are maintenance people, HVAC people in each unit. And so the cost is similar for each school that way. That's helpful. Thank you. And then the,
the administrative cost is for is, you know, copies and and all of that kind of thing. That's also inside of the NES kind of structure or budget, or is that So, yes, yes and no. Depends on what it is. Copies. Let's take copies, for example. That's a particular example for NES schools because NES schools are designed to have a copy clerk. And so that clerk is a cost that an NES school has and absorbs. Whereas the PUA, if they want a copy clerk, they would have to budget through their
budget to have a copy clerk. Got it. That makes sense. Thank you. Anybody else? Go ahead. While we're on this slide, I just want to make sure I'm following. When we're talking about the SPED chart at the bottom, the it's $16.96 dollars per student. That's allocated across all students within NES, or is that just as to those students who are in fact students with disabilities? I think it's all students, but I'm looking for my team To NES, yes. So that's so it's all students.
For so you're saying so the the denominator is all students? The total number of NES students? Or is the total just the students with disabilities? It's no. This is all students. So you take the total that's expended across all NES schools for all For Special Ed. Okay. And then you divide it by the total number of SNES. Total number of SNES students. Okay. Got it. Okay. And then, as I understand it, Okay. Thank you. Okay. So for each student that has a disability at an NES campus,
on average, that child is, receiving $16.96 dollars of an expenditure as we project it next year, right? Is that here? Okay. And the reason that that's significantly higher than PUAs is because there's more life skills kids in NES. Okay. Yeah. Microphone. The headline is that the students that have special education needs in NES have need more services for their designation. So then it's more expensive. Stacy can go in more depth on that.
But even though the numbers might be the same, similar NES for PUA, the designation requires more support for the average special education student in an NES campus. Stacy, do you wanna come give us some examples? So there are more students that are served in more restrictive settings. So, most a lot of the majority of the kids at PUA are in more inclusive settings in general education. Of course, we do have some self contained settings in the PUA schools as well.
However, in NES, there are more restrictive classrooms, more special education classrooms like our life skills classrooms. And that's because their IEPs require that, I see. Yes. Okay. Thank you. Thank you. That's helpful. Because as a percentage, it doesn't look that different to me in some 15 or 13% of the total student population. Can I ask a question about, on slide 12, the revenue piece? We're projecting the fiscal year twenty six revenue at 301,900,000.0 from the state.
What is that based upon? Is that the the what's currently sitting out there, Or is that based on a prior version of, legislation? Do we know? Yes. It's essentially the basic allotment for that let's see, we got this state's salary allotment. So each piece so if you're going to look at the state notice that it's the state, so that would be the basic allotment, then you have an allotment for state salary. We don't know exactly what that's going to be yet. And then teacher incentive allotment,
we don't know what that's going to be yet completely. And then the school calendar increase and we don't know exactly. So all four of these makeup what we think that we'll be getting from the state as our best professional judgment given the legislature that is out there right now. But you answered the question, I think. The three zero one is the basic allotment. And which basic allotment are we what is this based? I guess what's the assumption? $6,160 Current.
Yes. So that doesn't assume any increase in the basic allotment? Well, no, it does. It's we put in there we're working on March when we ran these. We know that that's not correct. So all of those numbers will change once the legislation has been passed by the signed by the governor. We don't know exactly what it's going to be, but that was where we were, what, three weeks ago. Okay. So just so I'm clear, the $301,900,000 is based on the current basic allotment of 6140 Dollars or $6,160
plus $395 Yes. Okay. But we now know that's not what's going to pass. Correct. I know that's not correct. Okay. As of last night, it could change, but We also know the other numbers aren't correct either. But what I was hearing you say earlier was that, that combined we think we're okay, but we won't know until June 2. When that legislature is finished when they vote, then you'll calculate exactly what these numbers are and you'll drop them into the budget. And if they're significantly off, we may have to look at the operating expenses.
If they're significantly higher, we'll have to do something perhaps different. That's right. And we have not waited. I told you this was an iterative process. So the increase or the decrease in expenditures is higher. We're saving more money because we made a few more we did more cuts and cut purchase services every week since almost eight weeks. Okay. Thank you. My other question is with respect to the other sources and transfers in, this year, we had budgeted $80,000,000.60
of which was associated with sales. Is, are we expecting to make those sales in next year? And is that what the $20,000,000 is, or is the 20,000,000 TERS money and other stuff? Jim. So the $80,000,000 essentially was property sales and this next year the $20,000,000 is essentially coming from TIRUS. So to be budgeting conservatively, then if we sell the property, it will add to the bottom line. But we're not budgeting for that right now? Yes, because we don't we're not sure we're going to sell.
Okay. You may want to come back to me. Go ahead. Thank you, Sue. Can you please remind me, I I wanna get a lesson on, the recapture and why we don't think we'll be paying it next year. I I recall, but please refresh my memory. Yeah. I I could do it, but I wanna be more happy. Jim, why don't you take a step and let's be brief and speak in Probably the extra year is is, Daniel. But, let me just say, basically, it is the state calculates what we're entitled to. And if what we're entitled to,
what we collect locally is greater than what we're entitled to, we pay recapture. Right now, the way that the state is the numbers we're running, it says, our entitlement will not be greater than what we collect. Okay. Now, I remember that. And that's based on enrollment decline? Well, our entitlement, is based on our enrollment. That's the biggest chunk of it and the type enrollment that we have. But the revenue size is based on assessed valuation. So if we get less revenue, which we will, even though we are entitled to less,
it'll be it'll be balanced. And why are we entitled to less? Is it property values going down? Is it enrollment? I'm trying to figure out Well, there's two reasons. So, we're entitled to less because right now, we think there'll be about, I think it's in the presentation 6,500 less students. So that means what we're entitled to is dropped. Also what we collect is based on I won't go into the detail of the tax rate that's set by the state for us and that will go
down right now approximately $0.01 It's $0.02 under the state calculations, but there may be a penny for, disaster relief. Okay. So if I'm, using basically HISD as a proxy, if our recapture is going down and we're considered a rich school district, is everybody going down? I'm just trying to figure out I'm trying to compare. Just Well, it depends. So there may be some districts where, what they're entitled to goes down, it's kind of two functions,
it goes down, but they're actually what they collect is going up for whatever reasons because it varies different parts of states, then they will owe recapture. But in our case, entitlement went down. But what we collect also went down and went down far enough that we don't have to right now, predicting we will not pay recapture. Has that ever happened for us in the history of our school district? Is that the same? It's happened before? Yes. Mhmm. Okay. When when did I I I'm curious.
When did it happen? I'm trying to, again, think about timing and maybe what external factors 2324. '20 2324. Oh, it just happened. Mhmm. But we so we didn't pay any recapture in 2324? Thank you for catching me up. I think one of the the idea behind recapture is that it's a zero sum game for the state, right? The state isn't getting new revenue because somebody pays, some districts pay recapture and some get money, right? And And so at the end of the day, it's simply a balancing out of the entitlements versus the property taxes that the revenue
that comes in, which is pretty interesting. It was originally called the Robinhood Act, right? Rich paid for it. Rich give to the poor. Right. No, we're even. We aren't getting any money. We're just even. Okay. Go ahead. Yes. I have a question. On one of the slides when you were talking about the budget differences between NES and PUA, can you kind of briefly or generally like where are we spending more? Is it high school level, middle school level, elementary level for NES? Where are we spending more of that? And why would it be?
Yes. So on a per pupil basis, if you keep because, high school, middle school, and elementary school all have the teacher apprentices and learning coaches. The the question is actually for any high school, middle school, and elementary school, even the PUA world, are we spending more on middle school, high school, or elementary? And the answer is always high school. And the reason why it's high school is because we have to provide more programming, more after school activities, more specialized classes. So even if you have small classrooms, you still have to do biology.
You still have to do career tech ed. You still have to do those courses. So high school is the answer. And then, one of the Q and As that were submitted was regarding contract services for NES and PUA. Let me pull it up real quick. So if you could explain some of the services that we're cutting out the PUA campuses because I think it was substantially different this year versus the budgeted amount. So I think, again, I want to make sure I give you the right amount. Give me one second. Purchase services for PUA? Yes, sir. So, most of the purchase services were decreasing that you find in the expenditures.
That's from central office, or the various departments. PUA still have the budget they have, and they're spending money on services like they always have unless they made made a different choice. So I I don't have exactly which PUA schools, cut out any purchased services, but we we can get that to you. Yeah. I I don't need to know the the list in services. It's just a a question, and I still can't find the information. But I was looking through it and it was about $30,000,000 less for PUA campuses. Again, just explanation as to what that may be. Yes, that's all I have for now. Actually,
the number this year was $51,000,000 Next year will be $15,000,000 So it's a substantial decrease in contract services. So I was trying to have a better understanding if that is direct service to the student or we're talking about more like maintenance, vendors, things of that nature. I'll have to get that to you because I don't know what you're looking at, but the PUAs have the control over their purchase services. Okay. That's Page 13 of the Q and A. So, thank you for now. Since we were on the revenue piece, I had a follow-up question there.
So in this fiscal year, as you mentioned, the property sales not occurring. We haven't received an amendment related to a write down on those. I'm not sure what the rules of recognition are on the sale, but I'm wondering about timelines of when what we sold is going to hit and then what's going to happen with the amount that we didn't hit to the current budget and the general fund? We will bring you a final budget amendment in June when we bring the budget in. So just as last year,
the final budget amendment, we bring in June. Got it. But as far as the revenue recognition on the sale, will those accrete to this fiscal year? Yes. Well, there will be some money that we will receive before the cutoff, which is June 30. So that way we'll receive. But until the sales documents end and legally we've passed that, that we won't recognize that. We will recognize it then in the following year when the properties that we are
negotiating sale purchase price comes through. If it comes through by June 30, then we'll see and we're pretty confident that there'll be some money that will be coming in before the end of this year. Got it. And just for clarification, so, if we sold $25,000,000 worth of property, the $25,000,000 that the sales docs are in will be recognized? Not necessarily cash, obviously, but just the sales docs? If there's a sale and purchase price and it's,
been signed by all parties, it'll be recognized now. Got it. And then the remaining funds that didn't get sold, what happens to those? Well, we're still under negotiation. So remember, we essentially accepted six properties. And so we know that at least one of the properties were in sale and purchase contracts. Once that's signed, then we'll be able to accept it this year and any other sales and purchase price that come through and we've gone through the acceptance period and it's finalized so
to speak and that happens before June 30, if you will. For those, let's say that's one and let's say the other five properties, we haven't gotten that far and we're still working on it after July 1, then we won't recognize that until the fall. The subsequent fall. Okay. And then as far as the remaining funds that weren't sold yet? So in this case, 25 sold, 55 not sold, what happens to We're still we went out for solicitation, brought in bringing in a commercial vendor and they're going to help us try to
sell those because we brought to you 17 properties and only six of them we accepted. So there's still 11 properties out there that are still surplus, and we are right now in the process of trying to get those sold. Good. And then for this year, fiscal year, those dollars aren't going to accrete, obviously, because they didn't sell. Right. So the funds, the $55,000,000 is do we then need to adjust the ending balance of the general fund?
I guess, I'm trying to understand what Yes. So what will happen is that if you look what's on your screen right now, you'll see revenue for $25,000,000 Well, what we will do is when we bring you the budget amendment, this amount here that says $80,000,000 will change to depending on how much we close in our sales. So let's say, we close $10,000,000 you'll see $10,000,000 there. Got it. That's helpful. So we could potentially have a write down of,
say, dollars 70,000,000. It's not a write down, but it's It's not a write down, but for the fiscal year. Yes. So our beginning balance then for the New Year would actually shift as well. Right? Yes. Okay. So if our beginning balance now if you'll flip to the summary, if our ending balance now is projected at $8.00 1, then potentially it could be shifted accordingly to how much we don't recognize. That's exactly right. But we there'll be other changes that we will bring in.
So right now, we think we still will be close to that number of $800,000,000 because we know that there's other things that are happening. Other stuff is happening, we're going to get some other money and fill it in. Okay. That's what I needed. Anything else? So there's always a possibility, right, that the bills don't get approved and we have a special session. How that impact us if it doesn't happen before the deadline? If, I mean, we will continue to put forward a budget based on the assumptions in the latest legislative bill, and make some reasonable assumptions like the basic allotments is only going to be 55.
If for some reason that the entitlements don't come through, the special through a special session, so let's say we really get hit hard on both basic allotment and entitlements, we would probably go bring the Board a budget that goes more into the fund balance. Anybody else? Okay, great. Let's go to tax notes. Maintenance notes. Yes, just this is just a reminder, not much has changed in this. We're still looking at Barbara Jordan upgrading our CareerTechEd program there and making improvements to
CTE across the board. Transportation, money for satellites and equipment, including our software or IT. And then we're still prioritize our, health and security. $4,040,000,000 is a good number, but not even close to what we actually need. Hopefully, the the legislature will come through with a few more million for safety and security, and that'll be a a good help. And then you already know about the IT infrastructure upgrade from that we're doing. That's gonna be over a few years,
three years, I think. And that is the presentation. Any other questions? Go ahead. Thank you. Really quickly. The Barbara Jordan upgrade, are these pieces of upgrades over time, or you're going in and redoing the whole thing? We're trying to do most of it will be this coming school year, and most of it has to do with, the programming and the equipment and materials we need for the programming. A little bit will be, actually, a good bit will also be in constructing, a couple rooms, big ones that will handle our HVAC,
program and our drones program. And so you expect within the school year to be doing that and then having the kit with, like, is it like a do it for a year and then kids are coming in, or we're just doing it all at the same time? We're all we're already starting to have programs of study tied, tied to the CT programs at Barbara Jordan. Great. I'm sorry, one more. And that will then be used for more than Barbara Jordan? So there are I think there are nine high schools that transport kids to Barbara Jordan at this time,
and we'll continue to have those high schools attend. Any other questions? We had a short discussion, I think you and I were just kind of sort of back and forth about regarding the maintenance tax note specifically. The, would these how would these be reported, I guess, is the first question. Will they be part of the sort of standard cadence of reporting? Since it's separate, normally, like we had a bond, maybe the audit committee would have certain things kind of related to seeing those things flow through. Just want to get the administration's kind of thoughts about what that looks like and
what you've considered. Yes, of course. We can respond we will respond to any audit committee request, but we could probably do a quarterly or at least 3x a year report on the status of this if the Board if that's the Board Yes. I think in the audit committee, we talked about having a quarterly report on IT infrastructure upgrades and some of these other things. So I think you can pull it put it all together in one, here's what we're doing with all the tax note projects and just update it quarterly so we can bring it to the board as part of the audit committee meeting.
That would be fine. Okay, good. Yes. I think it would be good if we can anchor it just in that way, we know what it is. Can any can we address any other questions at this time? Okay. The another follow-up I just had, and and these are I'm a just throw some numbers out, and I know they they don't all add up. But I'm just thinking about them floating in my head, so I wanna get them out so that I can understand. So I appreciate just any feedback you can give me on these. So when I look at the 6,500 student loss, and we just do the math, based on the basic allotment, we're talking about $39,000,000
And then if something were to occur like instead of the $55,000,000 instead of the $390,000,000 that we budgeted, we get $55,000,000 that's like 60,000,000 And and then I've got, I've got this other number in my head, but the I'm and I'm also wondering about, has there been any adjustments to the MCR specifically, or was there, in that calculation, was that based on the MCR adjustment? So as we think about I mean, that's $100,000,000 roughly, in the budget.
I'm just thinking, like, how have we put those into our minds and The MCR is calculated by the state and they tell us what the MCR is. And we're going from $0.7 essentially down to $0.68 and we know that. So we know that our local revenue that we bring in will go down because of that and that's that cash flow in. That's that one pillar that works in the state funding.
Yes, it sounds to me like this is more of a technical question that can be asked as part of our other Q and A update when we do the Q and A for the next round, because we will have a Q and A opportunity for the next budget round, which will be the final budget. And we'll be able to publish that as well for the community. So we'll have that in advance as well. So I think at this point, those I think they're I hear what you were saying in terms of your questions, but let's put those in a Q and A document so that they can get some specific answers around those because off the cuff,
it's kind of hard to do, especially when you're thinking about numbers a certain way and they may not hear in that way. So let's go ahead and do that, okay? Okay, great. Okay. I just want to clarify. So what is the process from here until the twelfth? We will be publishing a schedule that will give board members. I think we're going to just keep the same schedule, aren't we, which is two weeks in advance is what unless we need to do something different. So the, proposed budget will be on the June 12 agenda. So any additional questions, my recommendation is you just submit them as part of the standard regular board meeting
Q and A process, so, for June 12. So that'd be two weeks in advance of the document, the budget's is out, then we'd have a week to make the questions and then a week to answer the questions back a week before the board meeting. I'd have to go look at my calendar real fast, but I can We'll be at it tomorrow. Yes. We'll get it tomorrow. Yes. We'll get it tomorrow. Unfortunately, that's probably not the way it's going to work given the budget. See, the challenge we have in this, I'll tell you what, here's what we'll do. We will figure out this and then bring it and we'll send an email to the board saying how it's going to work because it doesn't make any sense to me to send any budget out until June 2,
okay? And then why don't we be ready to push the button on June 2? And then we will do a very quick turnaround on questions so that by the twelfth that everybody has had their questions answered, okay? And that is the challenge because the cadence of normal board meetings is being able to have that two week timeframe to be able to answer questions. And since we've been doing these workshops, we don't have that one month cadence. So that's likely what's going to happen. I would think we'd be ready by June 2 when there's clarity on what the
funding is going to be to be able to put the specific revenue numbers in place, right? Yes, sir. Assuming that the bill is passed before June 2. I mean Or even if it goes before June 2 and we have the knowledge of what it is, then we can get it out sooner. Yes. If it's signed like in a week, then we will be ready June 2. Okay. Got it. We'll send that. Any other questions or comments? Okay. I think our business is done. So we will no further business to discuss. This meeting of the Board is adjourned. The time is 03:43PM on 05/22/2025.
Thank you.