0:00The most pressing topic of the meeting was the Board’s review of the first revision of the 2024-2025 budget. Director Marcy Lord presented the budget details, highlighting a projected $3 million deficit in unassigned funds. This projection was a shift from the previous year, which ended with a $2.5 million surplus in unassigned funds. Lord explained that this deficit stemmed from adjusted pupil units and changes in funding, including increases in compensatory and special education funding. However, the specifics of how these projections were calculated led to an extensive discussion among board members.

Concerns were raised about the Local Optional Revenue (LTFM) and whether the district was prepared for possible future funding cuts. Lord provided further insights, noting that while some funding lines, such as literacy aid and student support personnel aid, had been introduced, not all had associated expenses recorded yet. This lack of clarity prompted board members to express apprehension about the district’s financial health.

The complexities of the budget, especially the distinction between restricted and unassigned funds, were another focal point. Lord emphasized that state requirements, not district decisions, dictated the growing number of account codes. The unassigned fund balance, while flexible, needed to be maintained at a sufficient level to avoid cash flow issues during economic uncertainty. Board members acknowledged the difficulty of borrowing to meet payroll if the fund balance fell below recommended reserves.

15:24In light of these financial concerns, the Board also addressed the financial status of the Crosby School District, identified as being in a statutory operating deficit. This situation necessitates a solution to rectify the deficit, as state law prohibits operating under such conditions if a district’s budget falls below 2.5%. The Board considered the typical approaches to resolving such deficits, which often involve budget cuts or seeking additional funding from the public, and expressed concerns about the broader financial landscape for districts across the state.

Following the budget discussions, the Board moved to approve a computer lease agreement for 725 devices, an essential step in updating the district’s technology infrastructure. The lease agreement, spanning four years at an annual cost of $224,423 with approximately 4.5% interest, was seen as crucial for maintaining staff devices. The urgency of the situation was emphasized, as the devices were reportedly already in the United States and required prompt ordering.

The decision to lease rather than purchase outright was driven by financial considerations, with leasing seen as a way to manage the district’s financial burden. However, concerns were raised about the transparency of the leasing process and the potential lack of competitive bids. One participant expressed a desire for multiple quotes from various vendors to ensure better price points and quality, rather than relying solely on the Sourcewell contract.

Despite these concerns, the motion to approve the computer lease agreement was made and seconded, passing without opposition. The Board’s decision underscored the need to balance immediate technological needs with long-term financial planning.