e e e e e everybody of at the start of the meeting we do have a quorum because we have two members that are online and we have two members that are here in person uh so we're going to start with introductions uh we'll start with Mr rossie yes just your name y Ryan Rossy yeah Faith shrom Heather Frederick um Chief Financial Officer Le Leanne Evans I'm the treasurer for the school district Patricia Morales and I'm the district I'm the district's uh Deputy general counsel thank you okay and then our on online members uh we have Miss Lori Bonino is online and we have uh Mr Parks is online and then we have District staff as well so we have um principles of Mr Brian mclennen melen let me see yes hi Brian mclen y I was just pulling up the the list um Miss Laura Paulo Paulo um she's my assistant and she'll be taking notes Mr Sanchez and then we have yeah I'm here this is Joe Sanchez one another call at the same time but I'm here okay thank you uh and then we have some District support staff from uh it um as well as Communications uh to help with the meeting and so miss banino since you're on since you're virtual I don't and the chair is was unable to attend and you are the vice chair uh would you like me to run the meeting or how would you like to proceed I'm sorry you broke up would I like you to do what would you like me to run the meeting since you're virtually since you're virtual today yes please okay all right thank you all right so I wanted just we started with introductions uh next uh see whether there any public comment and there is no um public that we have today so no public comment uh we'll start with uh the first action item approving the minutes from febr uary 29th uh so it okay and so a mo take a motion all right approved unanimously uh the next item is a discussion of the fy22 budget development update and I wanted to uh we will I will be doing a board Workshop Presentation tomorrow so this presentation is really same presentation that I'll be that will be presented to the board tomorrow at the board Workshop but wanted to give the committee an update from the close of the legislative session because we had um some legislative items that could potentially have a significant impact on the budget the first one being F FRS um there was a a big difference between what the house was proposing and the Senate was proposing from knowing rate increase at all uh to a potential rate increase of that would result in an increase impact to our our District budget of40 to $50 million and so I wanted to be able to give the committee an update as to where we're at uh so starting with the Florida retirement benefits we ended with uh the Senate proposal uh with some slight um changes so a very minimal increase of 0.5% which for our District budget represents only $500,000 so very minimal uh impact related to F FRS I do anticipate because the last two years the cost of living increases has been a topic um at the the legislature so I assume it is going to be brought back in Future years as well um but for this year uh we're looking at only a $500,000 increase in our F FRS rates uh for deregulation just focusing on the deregulation that have a financial impact uh school districts are allowed to post our Public Notices on uh an official website which we will be doing through the county um and it's well we can do it on our official website in addition to what was uh passed uh last year was that it could be put on a County website right now we're we are working with the county uh to participate in the platform the county is developing um it's a cost to our district of about $55,000 to participate with the county um but the amount that we spend on ad advertisements is close to $100,000 a year uh so this will will have a savings to our District budget even just the the budget for the uh posting of the tenative budget uh we spend uh 3,000 three to $4,000 a year on those advertisements that we will no longer have to do um so that's that's a that's a definite benefit and it's very restrictive as to where it has to be placed in the newspaper the size of the font um so those are things that we won't have to um to worry about going forward uh there are they also as part of deregulation reduce some of the financial reporting requirements uh so we can much of what we're required to do is to report monthly uh we are now to with some instances are going to be allowed to do some quarterly reporting uh we don't have plans at this point to change any of our our reporting uh we're going to continue as is uh but we'll wait to see if FD provides any additional guidance uh one of the proposals uh that Miss Evans U presented was one that was approved by uh the legislature was allowing the use of the cops financing to be used for non-school facilities because it was just for school buildings but now we can use it for ancillary facilities as well and then the cost per student station has been uh suspended to 2028 uh so another two years um from where it is right now now in 2026 um House Bill 1285 um the education bill has a lot of uh information in it but one that has a financial impact is U giving a $50 performance-based bonus for IB teachers that are currently excluded and uh the one program for the IB program that's currently excluded is theory of knowledge and so that's would have an impact in our district of about $20,000 uh we don't know if the actual calculation um and the amount of funding we're going to receive from the state is going to be changed at in any way uh but calculating on the teachers that would have been eligible this year um it would be about $220,000 and this is a class that all IB students are required to take um they were just never as part of the IB program but these teachers were just excluded um from the funding formula from receiving a bonus um so that was just a a correction of that what is this course this is a baseline it's a baseline course that all students in the IB Program are required to take it's just that for some reason these teachers never received the bonus and so now they're included in in receiving the bonus um the safety um Bill provides there's a lot of information in the safety bill but one of the items that has a financial impact is there's $1,000 bonus to each School principal and Charter School administrator for those who comply with the school safety requirements and there was additional funding that has been added in order to pay for this bonus uh we have a house bill 1403 the school education uh Choice uh a bill and this was you know similar to the one that expanded the use of vouchers where it eliminated all the eligibility requirements uh so now it's it's not significant changes U but making sure to clarify uh that active uh military U families uh they uh don't have to be on waiting lists um eliminating the waiting list for the special needs students uh also added some guidelines to the the uh scholarships and how the funding for the scholarships can be used um so that is going to be required to come out from the scholarship funding or organizations are required to provide some uh additional guidance on on uh restrictions for the use of those funds so House Bill 5001 and House Bill 503 uh that's the general Appropriations act as well as the implementing Bill those really tie to the ffp um but as part of the general Appropriations act there's $200 million that was set aside outside of the ffp for school recognition it used to be embedded within ffp and now it's um it's more treated like a separate appropriation outside of the ffp program Workforce funding uh that was funded at $19 million uh there's a school uh Choice Transportation stien um they and the legislature set aside $14 million so it's first come first serve uh based on U that Transportation stien uh the what I just uh talked about with the principal safety th000 bonus the legislature set aside three $3.8 million for to in order to fund that bonus and teacher classroom Supply uh that's a minimum of $300 we're required to provide a minimum of $300 and that comes out of our base student funding so that's not an additional allocation within the general appropriation act just each year they have to tell us how much we need to set aside and so it's $300 per teacher under house bill 511 uh the they're it's providing for and there's a lot of information in that education bill as well but those that have a financial impact uh the legislature instead of each year waiting to see whether they're going to set aside a stabilization uh Reserve they actually put in that they're going to have a minimum of 250 million for enrollment stabilization each year um so they could do more but at least at a minimum they're going to have 250 million and so that will minim minimize any impact if the state um does not appropriately project what the uh Statewide enrollment is going to be uh there is um something new added which doesn't have an impact to us right now but the Florida Department of Education is going to be required to tract all Schoolboard uh referendum and the debt tied to that referendum um for capital outlay or operational purposes um and so that's right like what I said uh doesn't have an impact on us now but that could be something that could potentially have an impact going forward and then this bill also this is where the stien for the school choice transportation is established but then it's funded from the general Appropriations act above Miss schrom did you have a question yeah so that's how they kind of all work you know together like the the GAA and the the implementation implementing bills tied to all the other educational bills that were passed uh the two that did not pass um that ended up um failing was the conversion Charter Schools uh that was the one where there was the potential uh amendment to force districts if we had two years of declining enrollment um to provide uh our vacant land to um Charter Schools um for them to be able to build and then sovereign immunity at the last minute ended up failing it was resurrected and then it ended up dying at the at the last minute um sovereign immunity is another one that has been brought forward the past several years and so I do anticipate it will be brought forward again next year and we will have an increase it's just you know which year is it going to be P which year is it going to pass and we really thought it was potentially going to be this year um but it it looks like we were able to Kick the Can down the road one more year all right so now getting into ffp and the funding that was actually passed uh so this is the is similar format that you've seen from uh year to year but if you start with Row one you can see enrollment for palmach county is projected to increase 8,400 students that increase in um students is includes District operated Charter Schools as well as vouchers and so on the next slide you'll be able to see the breakout between those three categories uh if you look at our based student funding we had an an increase in our base student funding of $191 per student and when you com uh when you apply our comparable wage Factor uh which went down slightly uh our increase in our based student uh funding was uh 3.8% or $181 per student um the comparable wage factor used to be called the District cost differential and that's based on the Florida um uh price level index it's an average of the past 3 years of of what our Florida price level index uh is for Palm Beach County and that uh decrease in the comparable wage factor that impact is about a 3 million doll reduction in our Revenue so going down from the 4.42% to the 4.08% um that resulted in about a $3 million reduction in our funding and the what the other item I didn't mention is there's a difference between our unweighted FTE and our weighted which is what is our our funded FTE and the way that that's calculated is based on cost factors uh we have a cost Factor that's that's allocated based on each program the student is in so whether they're a k through three student ver versus a 4 through eight student versus a 9 through 12 student whether they're an ESC student uh or whether they're um an English language learner student we give we get a certain weight for each of those students and I I mentioned that in the when I talked about the fund ffp funding formula and how that all works and the Florida Department of Education adjusts those cost factors each year that is also based on a three-year average and the some of the cost factors this year were reduced and the impact of the um reduction of those cost factors results in a loss of $5 million in our Revenue so just wanted to mention that so between the changes within the cost factors and the changes within our comparable wage Factor we have almost $10 million less in Revenue than if those would have just stayed the same value and looking at um the increase in the other uh categoricals we had an increase in the ESC guarantee so that's funding that has to be specific specifically Ed for special needs students uh our district spends well above what we receive um so we have an increase of 6.9 million and but that includes the allocation to Charter Schools uh we have an increase in the educational enrichment funds of 1.8 million safe schools of 2.8 million um transportation of about a million dollars and the mental health assistance of 1.3 million we used to have more categoricals um like constructional materials um as well as the reading allocation which you can see is zero all of those have been rolled up within the base student allocation so we still need to track them although uh they're not set they're not separated out as a separate categorical any any longer and looking at the the next slide uh we had an increase in our state funded discretionary supplement um that's helped that helps to um offset the the amount of local Revenue that the vouchers students are receiving um a required local effort is going up slightly um and if you move down to the enrollment breakdown uh you can see District of that increase of 8,400 students District operated schools are projected to increase by 800 students charter schools by 400 and the voucher students by 7200 students so looking at the increase of 8,400 the majority of it is going to be an increase within our voucher students initially uh the Florida Department of Ed was projecting we would have a decrease in our district operated schools of 400 uh but we were able to demonstrate that over the past several years our trend has been a modest increase each year in enrollment U so they went back and revised and they did increase the district uh projected enrollment by 800 and slightly reduced the offset that against um they slightly reduced the increase of the voucher students to help offset that it will be an additional 7,000 is what's projected that will be um is that because they've in increased the amount in vouchers or just more kids will be taking advantage of the same amount it's probably going to be a combination of both both you know more more parents taking advantage of the voucher program as well as new schools um signing on to be eligible to participate in the voucher program and the state provided more money for vouchers or not well they provided a and they have an increase in the projected enrollment which is supposed to include the increase of voucher students so in Palm Beach County there um the the uh ffp includes an increase of 7200 students for vouchers and then they also set aside $250 million in that education stabilization Reserve so if they under if the state underprojected the voucher enrollment they have $250 million set aside to cover that shortfall and can public school districts ask for that also if they get it high yes it is it's it's to provide um it's it's to provide a a minimum amount so that if enrollment fluctuates significantly they'll be able to hold harmless thank you uh so the overall increase in funding is $210 uh per student or 2.27% uh the base student allocation also includes an increase in the Florida classroom teacher Compensation Program which is an increase of $ 13.9 million that used to be broken out as a separate categorical and that's just embedded now now within the base student allocation so we're looking at an increase of 56,500 ,000 and so what how does that break down um so if we start with 56,500 we have a minimal increase in F FRS of only $500,000 we have the increase in the mental health uh that we have to use for U specifically mental health initiatives as outlined in in state statute so we have to back that out we have to back out the increase in the teacher compensation which is net of the charter schools um so for Palm Beach County it would be uh District operated schools is 12.5 million for health premiums I'm going to add that below because health health premiums really are a challenge um our funds we are seeing an increase in um our uh Health claims um that are that aligns with the national Trend and so we are going to have to have another increase within our health premiums um we have already talked about the impact of Esser and Esser will be sunsetting um at the end of this year and the amount to sustain our Esser initiatives is 7.8 million uh we have to set aside 3% of our total revenue to comply with our board contingency reserve we usually set that aside from the funding we receive from the state but but what I'm proposing to do is to use one-time um funds this year um to cover that increase in the contingency um so it would be $5 million of one-time funds to cover the contingency so that would leave some more money available for salary and benefit Reserve uh we have that increase of approximately 800 students within District operated schools and with an increase in students we also have to increase Staffing so that cost is about 3.3 million we have have some changes now that we've gone through all the department reviews we have an increase in Department budgets of 1.5 million and then we had a a salary um settlement agreement this year and U some of our unions are on a calendar year basis and so that 4.2 million is to represent the settlement that we made this year in fy14 the full impact of that in next next fiscal year so that's an additional 4.2 um so the the total that we already have you know set aside is 30.9 million so that leaves a surplus of 25.5 million uh so if we we look at the amount we have set aside for the teacher compensation um that's in the base student allocation that's 12.5 million plus the surplus of the 25.5 million that leaves $38 million for salary and benefits Reserve to help cover arrays as well as you know to help um um offset increases in health premiums and looking at um just to to briefly go over uh the general fund impacts to sustain those Esser in initiatives of the 7.8 million there are seven positions totaling $500,000 um because the departments were able to offset by either eliminating positions or non-salary in order to reduce that dollar impact uh we have instructional um software that we're going to have to reabsorb back into the budget that's about $2 million and then we had other Esser initiatives uh the Epi teachers those are international teachers that are we're helping to um use to reduce our vacancy rate as well as expanding the use of a act and college board that's that's an initiative that we used with within Esser um so total Sr initiatives are 5.3 uh 3 million um um changes in departments so after going through a detailed review of departments we're looking at a total uh impact of 1.5 million in changes uh the majority of it is in um software so we have some additional software uh that um uh that we need in order to help comply with State Statute one being a library media program um we also wanted to Institute a social media monitoring um program as well uh we have what we call Saturday extra Duty days um those extra Duty days are to help um keep us on track with our ESC testing so that's something we want to make sure to continue uh we want to pressure wash um some schools uh we've been painting all of our schools so we need to make sure um to keep them in order to make that that painting lasts longer make sure that we pressure wash and keep the the schools clean that not something that would fall under Capital so it's something that it's it's more like a custodial cost and so that's why it's something that um has to be included in the general fund versus capital I wondered how that fell under software oh it doesn't fall under soft these are this is everything within um that's that's more like non-salary so I grouped them all together so all of these add up to 1.1 million but I I categorize them by Dollar impact so the software initiatives are have the the the most significant impact and then from there it it goes down so I didn't want to put the exact dollar amount for the different um uh platforms because I don't want the vendors to know how much money we have set aside in order to cover uh the costs of them um but the Saturday extra Duty days for example is um $250,000 U for those extra Duty days you know the pressure washing um is approximately $400,000 in cost for for pressure washing increase in graduation um those costs are about $60,000 we're we use the Florida Fairgrounds and they increased um we had some increases in the contract with the fairgrounds as well as needing some additional audio visual um we've had some uh we have position changes with in the Departments um so not adding any positions um but making um some uh organizational changes within the Departments um the IT department um wanted to expand their the internships that they have they use a lot of um our students our district students for those internship programs and it has been very successful uh so they wanted to expand that uh we have every year increases in just our contracted our regular software contracted software that we have we always have just contractual increases within those contracts um and then some small increases in travel and supplies in the department so all of that different stuff adds up to 1.1 million um the next bullet for professional development for Project based learning and the implementation of that the destiny Library manager um system which is the library media program above of 258,000 is a one-time cost um so the um that's one time and why I have it separated out in a separate bullet and then within the general councils Department um they're looking to add one legal position and then they've also had an increase in court reporting costs and cons and consultum costs and all of those total 150,000 so all of that totals a total of 1.5 million within the Departments can you tell us something about the destiny Library System the the reason for the destiny library is our district was using as part of State Statute we're required to post all of our libraries School libraries online so all of the books that are being used by each of the teachers we have to post them online we were using Google books which was a free software since we utilize Google um as a district um Google shut off the access for Google books um so we're no it's we're no longer allowed to have it public um available to the public so right now we have a workaround where staff is manually downloading the information and manually uploading it to our website so that it can be publicly available um the use of Destiny Library manager now has a module within it which we already use for just our regular textbook inventory system that we can use for that same purpose and we can go back and have it posted automatically on the website and instead of having to have that manual in intervention each day where we have to download it and re-upload it thank you okay and uh this is just an update of our historical enrollment um based on the actual projected enrollment that Doe approved for our district uh so the blue bar is for district operated schools so we're at 165,00 three so that increase of about 800 students orange is Charter um they had a de Charter had a decrease of 400 students this year um they're projected to have an increase of 400 students next year so they would be at 22463 and then the gray bar are the voucher students and you can see that vouchers are now expected to have um have higher enrollment than charter schools at 22564 and then within our Capital project fund Miss Evans we'll we'll give a brief overview and give Miss Frederick a break for a second um so the capital budget um we're still working on the capital plan we're expanding it we know we're required to do a five-year plan we have all we've been 10 years for the last 10 or 10 years or so since we did the sales tax referendum and now that we're looking at the next referendum we're expanding that even further due to 12 years so we're still working on the the plan right now um and still working on balancing fway 25 so not as far along as the general fund but we hope to have that ready for you at your next meeting the significant changes we have so far is the addition of the Rivier Beach High School which will be on the current Inlet Grove site um that was discussed at a budget workshop with the board capital budget workshop with the board recently um the inlet Grove um will be moving to from site where River Beach High School will be to where Lincoln Elementary School is now and the students from Lincoln students and staff from Lincoln will be moving to nearby schools there are three other elementary schools that are within walking distance um so they're working on a plan for which students would go where which staff would go where um still really in the development for that and it's a couple of years away because we have Lincoln is being used as a holding school for a school that's under construction and another one that's about to be so it's a couple of years before this all happens but it requires a lot of planning and we need to include it in the capital plan um we're also adding the elementary school in the area of Westlake and I mistakenly said Westlake Elementary School it's actually named Southwest area elementary it's near it's in the development where West Lake is at so my apologies for using the wrong name there um but it's in the Westlake development so that's the big construction projects that will be added we are adding some positions in capital there are five more positions needed to help make sure we finish all the projects on the referendum work referendum as well as all the other work that's coming um I personally think we were a little low on Staffing there and they've really been struggling so adding these positions in we'll make sure they can get the work done as timely as possible and we're also adding some positions into the capital maintenance transfer so we're transferring money from the capital budget into general fund to maintain the buildings so that's five positions to deal with the growth in South County we've added three new schools and we've increased the size of three other schools adding grade six to eight so they just have a lot of square footage down there so five more positions there three positions to deal with ongoing security issues we now have a 24-hour required turnaround if there's problems with locks or Windows or doors we just don't have enough staff to do it right now so we want to make sure we can keep those schools safe and secure and three more positions to deal with just the increase in the small projects throughout the district there's a ton of them I mean it's up to hundreds of projects per person right now so it's just not feasible to continue to manage that so we've added a few positionings of capital and that's what I know right now but we'll be bringing some more information back to the next meeting hopefully with a fully balanced 12-year Capital plan all right so that's where we're at right now so the general fund is um is balanced with a $38 million uh set aside for a salary and benefits reserved but when we look forward I mean we do have some uncertainty of what is enrollment going to look like come out count day so we do do an 11-day adjustment based on actual enrollment uh what is the impact of the vouchers going to be um it is um uh we are fortunate this year that this the state legislature did add in that reserve of the 250 million not only for this year but they added in language that it's going to be in there for every year at least a minimum of 250 million so that is it that at least helps off helps to um uh to ensure that uh we won't have any uh large pro-rated hold back if enrollment comes in higher than what was projected at the state level uh we do know that there's going to be an increase in health premiums this year um so working through that and you know what is the what is the difference going to be between a raise um you know there is one pot of money um so you know whatever a portion is set aside for health premiums um that would then reduce the amount that's available to give a raise for employees it's always better to give a raise um because at least that goes into your F FRS and your your pension benefits um but we are working through that with the unions right now um and then future legis of increases in F FRS um I do anticipate since the last two years cost of living has been brought up and that's that's going to continue to be brought up um in the upcoming years um so what's going to happen when are we going to have to start um funding uh those potential cost of living increases within the capital projects fund uh we do have a board approval of um going to the voters for um continuing our um current sales tax and U due to escalating costs and so that would go to the voters in November uh so that is a a future um consideration as well you know that is needed for us to continue to just uh continue to uh maintain uh our current facilities and then what other potential legislative changes are out there um after the expansion of vouchers it doesn't seem like there could be much more that could be done to Charter Schools uh but you you don't ever want to say that it couldn't be worse so what else could happen um in the future so we do have a budget Workshop uh tomorrow and it's going to be the same presentation um as today our next budget advisory committee is scheduled for April 23rd the reason for that is we have another board Workshop scheduled on the 1st uh I'm not sure how much new material we'll have for a workshop on the 23rd it depends on how much we have ready on the capital side um so if we don't have enough information I will end up cancelling it and then I I would put in uh we might then wait and then just do the budget advisory committee on May 30th because that would be able to provide us some more time to provide some information on the on the capital budget um or I'll you know add another meeting in once we have more information I have a question on the capital budget those positions that are being added um seems like the compens ation level is different for the two um for the positions in capital and then the positions in CMT yeah there there's positions that are being split funded between Capital maintenance transfer and so it's it's not just five positions there's actually positions that are currently in the maintenance transfer that are moving into capital and they're being split funded and that helps offset some of the increases down below thank you you're welcome should have mentioned that when I went through it thank you for bringing it up um and our next uh so our next budget advisory committee is the 23rd but like I said I I will keep keep the committee posted as to U the amount of material we have available uh with related to Capital and then you know right after that it will just be the committee working on the report uh to the board and then we'll plan on uh when that presentation to the board will be um but the next uh tenative budget adoption is on July uh 31st first and final budget adoption is on September 4th so are there any other questions that was a pace yes so we did this one was much shorter than last time because I know last time was a rough one to get through but wanted to make sure like I said to give the committee an update of where we are before the presentation to the board tomorrow all right thank you all right well thank you all and then need a motion yeah we need a motion to second1 all right thank you all righty