[1. CONVENE]
[00:00:02]
>> GOOD EVENING, AND WELCOME TO THE SPECIAL MEETING OF THE FERNDALE SCHOOL BOARD.
THANK YOU FOR JOINING US, WHETHER LIVE OR ONLINE.
YOU MAY NOTE THAT OUR ATTIRE IS A LITTLE MORE CASUAL THIS EVENING AS WE EMBRACE THE HAWAIIAN THEME FOR OUR JULY MEETING.
THE PURPOSE OF OUR SPECIAL MEETING TONIGHT IS TO RECEIVE COMMENT ON THE PROPOSED 2025 2026 DISTRICT BUDGET.
A QUICK COUPLE OF HOUSEKEEPING ITEMS FOR THOSE OF YOU WHO MAY NOT HAVE JOINED US BEFORE.
IN THE EVENT OF AN EMERGENCY, THE EXIT IS THROUGH THOSE DOORS.
IF YOU NEED THE RESTROOM OUT THOSE DOORS AND UP THE RAMP, AND YOU'LL BE TAKEN CARE OF.
[2. ADOPTION OF AGENDA]
FIRST ITEM ON OUR AGENDA TONIGHT IS ADOPTING THE AGENDA, AND IF I COULD HAVE A MOTION OF SUCH.>> I MOVE TO ADOPT THE AGENDA.
>> HAS BEEN MOVED TO ADOPT THE AGENDA.
ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.
>> THE AGENDA HAS BEEN ADOPTED,
[3. PUBLIC COMMENT]
SO WE WILL GO AHEAD AND MOVE ON TO RECEIVING PUBLIC COMMENT.OUR FIRST COMMENT TONIGHT IS DON FAM.
I IDENTIFY AS A PER RESIDENT ON BARRO ROAD.
THE TIMING OF TODAY'S BUDGET HEARING IS GOOD BECAUSE I RECENTLY RAN ACROSS AN ARTICLE DEALING WITH THE VERY TOUCHY TOPIC OF TEACHERS PAY.
THE ARTICLE TITLED HIGH PAY LOW TEST SCORES, WASHINGTON TEACHERS EARN MOST WHEN FOR COST OF LIVING, WAS WRITTEN BY CARLEEN JOHNSON AT THE C SQUARE.
I WOULD LIKE TO SHARE SEVERAL EXCERPTS.
WASHINGTON STATE RANKS HIGHEST IN THE NATION FOR ADJUSTED PAY AMONG ELEMENTARY, MIDDLE, AND HIGH SCHOOL TEACHERS, ACCORDING TO USA FACTS, BASED ON DATA FROM THE US BUREAU OF LABOR STATISTICS.
ACCORDING TO THE DATA, KINDERGARTEN TEACHERS IN WASHINGTON EARNED THE HIGHEST MEDIAN SALARY IN 2024 AT 87,530.
ELEMENTARY SCHOOL TEACHERS EARNED A MEDIAN SALARY OF 99,320.
MIDDLE SCHOOL TEACHERS 99,150, AND HIGH SCHOOL TEACHERS 99,640.
BY COMPARISON, THE 2024 MILLION ANNUAL WAGE FOR PRESCHOOL TO 12 TEACHERS IN THE US IS 63,000.
VICKI MURRAY, DIRECTOR OF THE CENTER FOR EDUCATION AT THE FREE MARKET WASHINGTON POLICY CENTER THINK TANK, TOLD THE CENTER SQUARE SHE HAS NO PROBLEM WITH PAYING TEACHERS A DECENT SALARY FOR THE IMPORTANT WORK THEY DO.
HOWEVER, SHE SAID STUDENTS OUTCOMES IN WASHINGTON HAVE BEEN DECLINING, EVEN AS TEACHER PAY KEEPS CLIMBING.
A NATIONAL COUNCIL ON TEACHER QUALITY REPORT FROM JUNE 2023 ASSESSED THE PERFORMANCE OF STATE-LEVEL PROGRAMS IN TRAINING INSTRUCTORS ON HOW TO TEACH CHILDREN TO READ.
WASHINGTON STATE'S PROGRAMS DID NOT FARE WELL.
RANKING AMONG THE WORST IN THE NATION IN PROVIDING QUALIFIED TEACHERS FOR PUBLIC SCHOOLS, ACCORDING TO WPC AT THE TIME.
I HAVE NO PROBLEM PAYING THEM MONEY, BUT WE SHOULD EXPECT SOME STANDARDS. SHE SAID.
WE'VE DIVORCED PAY FROM PERFORMANCE, AND THAT'S WHERE WE GET INTO TROUBLE WITH THE ADULTS GETTING PAID SICK FIGURE SALARIES TO DO A JOB WITHOUT GOOD RESULTS.
WE WOULD NOT TOLERATE THAT IN ANY OTHER ASPECT OF OUR LIVES FROM OUR HEALTH CARE PROVIDERS, MECHANICS, OR PILOTS.
BUT SOMEHOW, WE SEEM TO MAKE EXCUSES WHEN IT COMES TO OUR CHILDREN'S EDUCATION.
I HOPE THE ISSUES RAISED IN THIS REPORT WILL PROVIDE THE WARD WITH SOME INSIGHTS TO PONDER.
THIS PROPOSED BUDGET IS A NEW RECORD HIGH, BUT HAS STUDENT PERFORMANCE IMPROVED ACCORDINGLY? THE SHORT ANSWER IS A BIG NO. THANK YOU.
>> THANK YOU, DON. GIVEN THAT THIS IS A PUBLIC HEARING RELATED TO THE BUDGET,
[00:05:03]
IF ANYONE ELSE IS INTERESTED IN COMMENTING, THEY CERTAINLY CAN.SEEING NO OTHER COMMENT, THE BOARD HAS THE OPTION WE CAN HAVE.
THERE IS A PRESENTATION DURING THE MEETING TONIGHT ON THE BUDGET THAT WE COULD DO NOW.
THE ONLY DRAWBACK TO THAT IS IT IS ON THE AGENDA FOR LATER, AND SO WE WOULD HAVE TO HIGHLIGHT IT, OR WE CAN WAIT TO SEE IF ANYONE ELSE SHOWS UP FOR PUBLIC COMMENT.
I'M OPEN TO THE WE ONLY HAVE SEVEN MINUTES.
SO IF WE DID START IT, WE WOULD GO PAST OUR SIX O'CLOCK STARTING POINT.
>> WITH THE PRESENTATION? ANY OTHER COMMENTS? WE'LL GO AHEAD AND START WITH THE PRESENTATION, AND WE'LL SEE HOW FAR WE GET.
>> WE'RE HERE TO TALK ABOUT THE BUDGET.
THIS YEAR, FOR THE '25, '26 BUDGET.
WE PREPARED THE BUDGET WITH INTENTION TO INCLUDE THE STRATEGIC PLAN, AND WE ALSO SURVEYED THE BOARD TO MAKE SURE WE INCLUDED BOARD PRIORITIES.
THE BOARD WAS HIGHLY INVOLVED AND ENGAGED IN THE PROCESS.
WE TALKED ABOUT A BUDGET A LOT, PROBABLY MORE THAN WE EVER HAVE.
THE BUDGET PROCESS WAS TRANSPARENT AND COLLABORATIVE.
WE'VE INVOLVED DIRECTORS AND PRINCIPALS AND JUST A VAST RANGE OF PEOPLE IN THIS PROCESS.
THIS IS JUST A SNIPPET FROM OUR TIMELINE.
THESE ARE ALL THE TIMES WE EITHER TALKED ABOUT THE BUDGET WITH THE BOARD OR PRESENTED SOMETHING TO THE BOARD REGARDING THE BUDGET.
I JUST WANTED TO GIVE AN OVERVIEW OF HOW INVOLVED YOU WERE.
THANK YOU. I'LL PASS IT OVER TO KRISTIE FOR SOME REMARKS.
>> THIS IS THE CULMINATION OF THREE YEARS THAT I'VE BEEN HERE, AND WHAT WAS UNIQUE THIS YEAR, AND I'VE SHARED THIS TIME AND TIME AGAIN.
THE ISSUE I'M HAVING AND WE'RE SEEING IT BOTH AT THE STATE AND REALLY THE FEDERAL LEVEL IS EDUCATION IS JUST NOT ONE OF THE PRIORITIES THAT WE'RE SEEING FUNDING.
NEXT YEAR, YOU WILL SEE THAT IN THE STATE BUDGET IS ACTUALLY LESS OF THE OVERALL STATE BUDGET, WHAT THEY'RE FUNDING IN EDUCATION THAN THIS YEAR.
WHAT JUST TRANSPIRED AT THE FEDERAL LEVEL, THE WITHHOLDING OF FUNDS AND THEN THE RELEASING OF FUNDS.
WE HAVE TO ANTICIPATE THOSE PIECES WITHOUT KNOWING.
WHAT YOU SAW THIS YEAR WAS REMARKABLE WORK OF OUR TEAM, HOLLY SAID, YOU WERE MORE INVOLVED THAN EVER.
WE WERE MORE TRANSPARENT THAN EVER, AND THAT'S BEEN OUR OVERALL GOAL IS TO MAKE THE BUDGET PROCESS VERY TRANSPARENT.
HIGHLIGHTING WHAT WE'RE GOING TO DO BECAUSE AT THE END OF THE DAY, EVERY DECISION WE MAKE NEEDS TO BE ABOUT OUR STUDENTS.
WE'VE CONTINUED TO CENTER WHAT THE NEEDS ARE OF THE STUDENTS.
BUT THAT STARTS TO MEAN THAT WE CAN'T DO SOME THINGS.
NEXT YEAR, I ANTICIPATE WE'RE GOING TO START HEARING ABOUT WHY AREN'T WE DOING THIS? WHY AREN'T YOU DOING THAT? IF YOU'RE WATCHING FERNDALE NEIGHBORS ONLINE, THE CONVERSATION AROUND SCHOOL SUPPLIES.
FOR THE LAST FEW YEARS, WE'VE TAKEN CARE OF SCHOOL SUPPLIES.
WE'RE NOW ASKING FAMILIES TO BRING SCHOOL SUPPLIES.
THERE'S BEEN DIFFERENT ORGANIZATIONS WHO ARE DOING DRIVES.
OUR FOUNDATION IS ONE OF THEM.
IT REALLY IS A COMMUNITY EFFORT.
I THINK ONE OF THE SOCIAL MEDIA COMMENTS THAT RESONATED WITH ME THE MOST, AND WHAT MAKES FERNDALE SO UNIQUE, AND WHY I THINK THIS IS A TIME THAT WE WILL WEATHER TOGETHER,
[00:10:02]
IS SOMEONE SAID, THIS IS JUST WHAT WE DO HERE IN FERNDALE.WE TAKE CARE OF OUR KIDS. THAT'S WHAT WE'RE DOING, AND THAT'S WHAT YOU SEE HAPPENING WITH THE BUDGET.
I'VE APPRECIATED YOUR QUESTIONS, THE CONVERSATIONS YOU'VE HAD.
THIS, WE'RE GOING TO FINALIZE THE BUDGET, AND NEXT MONTH, WE'RE GOING TO START TALKING ABOUT THE BUDGET.
IT JUST IS AN ONGOING EVOLUTION OF A PROCESS.
I REALLY WANT TO GIVE A SHOUT OUT TO HOLLY AND HER TEAM WHO HAVE WORKED SEVEN DAYS A WEEK AROUND THE CLOCK, MAKING SURE THAT EVERYTHING WAS READY IN TIME, UP TO GO.
THANK YOU, HOLLY, FOR ALL YOUR WORK.
>> THE OFFICIAL STATE DOCUMENT IS CALLED THE F-195, AND THAT DOCUMENT ALSO INCLUDES THE F195F, WHICH IS A FOUR-YEAR PROJECTION, AND THE F203.
NICE LIGHT READING, IF ANYBODY HAS TROUBLE SLEEPING AT NIGHT.
WE ALSO ARE REQUIRED TO DO WHAT THEY CALL AN MSOC DISCLOSURE.
MSOC STANDS FOR MATERIAL SUPPLIES AND OPERATING COSTS, AND THAT JUST PROVES THAT WE ARE SPENDING ALL OF THE STATE MONEY THAT THEY GIVE US FOR MSOCS ACTUALLY ON MSOCS.
THERE'S ALSO A DOCUMENT POSTED CALLED THE CITIZENS BUDGET, AND IT'S NOT REQUIRED, BUT IT INCLUDES THE SAME INFORMATION THAT IS IN THE F-185, BUT IT'S JUST IN AN EASIER-TO-READ FASHION.
>> I THINK PEGGY HAS A QUESTION.
>> USE YOUR MIC IF YOU'RE GOING TO ASK QUESTIONS.
>> SORRY. ON THE MSOC DISCLOSURE, IT STARTED OUT AT SIX MILLION.
SOME LOOKED LIKE WE WERE APPROPRIATED, LOOKED LIKE WE SPENT 12 MILLION, AND SO THAT OTHER SIX MILLION WOULD BE COMING FROM LOCAL FUNDS, RIGHT?
>> LOCAL FUNDS ARE JUST OTHER APPORTIONMENT THAT WAS INTENDED FOR ELSE.
>> BUT YES. WE GOT ABOUT HALF OF WHAT WE NEEDED FROM THE STATE.
>> THIS IS A PAGE FROM THE F-185, AND THIS SHOWS ALL FIVE FUNDS: THE GENERAL FUND, ASB FUND, DEBT SERVICE, CAPITAL PROJECTS, AND TRANSPORTATION VEHICLES FUNDS.
I WANTED TO JUST POINT OUT THAT THIS SHOWS THE APPROPRIATIONS AND REVENUES FOR EACH OF THOSE FUNDS, AND WE'LL DIVE A LITTLE DEEPER ON THE FOLLOWING SLIDES.
THE FIRST ONE WE LOOK AT IS THE CAPITAL PROJECTS FUND.
THIS FUND IS FOR THE ACQUISITION OF LAND, EXISTING BUILDINGS, CONSTRUCTION, OR OTHER EQUIPMENT THAT'S RELATED TO CONSTRUCTION.
IT'S GENERALLY FUNDED FROM THE SALE OF PROCEEDS FROM BONDS, AND THEN THE STATE DOES HAVE SOME MATCHING FUNDS AS WELL, AND IMPACT FEES IS ANOTHER WAY WE COLLECT CAPITAL PROJECTS FUND, AND THAT'S JUST A FEE ON EVERY NEW BUILDING IN LIKE A HOME THAT'S BUILT IN FERNDALE.
WE GET A SMALL AMOUNT OF MONEY JUST TO MITIGATE THE IMPACT ON OUR SCHOOLS.
FOR '25 '26, OUR BEGINNING FUND BALANCE IS A LITTLE OVER $4 MILLION.
WE'RE GOING TO HAVE REVENUES OF ABOUT 770,000 EXPENDITURES IN ABOUT THREE MILLION, SO WE'LL END PROJECTED 1.8 MILLION.
THE NEXT FUND WE'LL LOOK AT IS THE DEBT SERVICE FUND.
THIS IS TO ACCUMULATE FUNDS TO PAY OUR BONDS.
BEGINNING FUND BALANCE AT SEPTEMBER 1, 2025 IS PROJECTED TO BE 4.6 MILLION.
WE'RE GOING TO HAVE REVENUES OF ABOUT 7.5 MILLION, EXPENDITURES OF ABOUT THE SAME, 7.5 MILLION, SO WE'LL END WITH ABOUT 4.6 MILLION IN THAT FUND.
THE ASSOCIATED STUDENT BODY FUND, OR ASB.
THIS IS A SPECIAL REVENUE FUND, AND IT ACCUMULATES THAT'S THE COLLECTION OF FEES FROM STUDENTS AND NON-STUDENTS.
IT'S FOR THE BENEFIT OF STUDENTS, AND STUDENTS HAVE A SAY ON HOW THIS MONEY IS SPENT.
THE BEGINNING FUND BALANCE FOR THIS FUND WAS 780,000, OF WHAT WE'RE PROJECTING.
WE'LL HAVE REVENUES OF ABOUT 1.1 MILLION AND EXPENDITURES IN ABOUT THE SAME AMOUNT, SO WE'LL END WITH ABOUT THE SAME, ABOUT 780,000.
THE LAST ONE IS THE TRANSPORTATION VEHICLE FUND, AND THIS FUND IS USED EXCLUSIVELY FOR BUYING TRANSPORTATION EQUIPMENT OR MAJOR REPAIRS WITH THE APPROVAL OF OSPI.
THE BEGINNING FUND BALANCE IS PROJECTED TO BE 1.8 MILLION.
WE'RE GOING TO HAVE REVENUES OF ABOUT 728,000, EXPENDITURES OF TWO MILLION, SO WE'LL END AT AUGUST 31, 2026 OF ABOUT A LITTLE OVER $1.5 MILLION.
NOW WE'LL JUMP INTO THE GENERAL FUND,
[00:15:01]
WHICH IS THE BULK OF OUR ACTIVITY IS IN THE GENERAL FUND.WE'RE GOING TO JUST GO THROUGH THE CITIZENS BUDGET, WHICH IS ONLINE.
I'LL JUST GO THROUGH THIS PAGE BY PAGE.
THE FIRST FEW PAGES ARE JUST THE TABLE OF CONTENTS AND AN INTRODUCTION OF THE FUNDS, AND AN EXPLANATION OF WHAT IS EACH FUND THE PURPOSE.
THEN THERE'S A BUDGET SUMMARY HERE THAT WAS THE SAME THING I JUST PRESENTED ON THOSE OTHER SLIDES.
THIS SHOWS THE BEGINNING FUND BALANCE AND ALL THE DIFFERENT FUND BALANCE ACCOUNTS WE HAVE WITH OUR TOTAL BUDGETED REVENUES AND EXPENDITURES, AND THEN SHOWING WHAT THE PROJECTED ENDING FUND BALANCE WOULD BE.
WE'RE THINKING AT SEPTEMBER 1, WE'LL HAVE ABOUT $5 MILLION IN FUND BALANCE.
WE'RE GOING TO SPEND ABOUT $450 OF THAT IF WE SPEND EVERYTHING THAT'S IN OUR BUDGET, SO WE'LL END NEXT YEAR WITH ABOUT 4.5 MILLION.
REMEMBER, WE HAVE A 4% MINIMUM FUND BALANCE THAT'S REQUIRED BY POLICY.
NEXT YEAR, THAT WOULD BE 3.7 MILLION IS OUR MINIMUM.
THIS IS OUR ENROLLMENT FOR THE LAST SIX OR SEVEN YEARS.
JUST SHOWS THAT'S BEEN FAIRLY STABLE.
THIS IS A GRAPH THAT SHOWS REVENUES BY SOURCE.
YOU CAN SEE ALL THE DIFFERENT SOURCES WE HAVE, LEVY, LOCAL NON-TAX, THE STATE BASIC ED ALLOCATION OR APPORTIONMENT, STATE SPECIAL REVENUES, WHICH WOULD BE GRANTS AND FEDERAL REVENUES, AND THEN OTHER JUST MISCELLANEOUS ITEMS. THIS BREAKS DOWN THAT FIRST SLIDE, BUT INTO MORE GRANULAR DETAIL OF EACH OF THE DIFFERENT REVENUE STREAMS WE HAVE.
NOW WE'RE JUMPING INTO EXPENDITURES.
THIS IS BY OUR MAJOR PROGRAMS, AND OUR MAJOR PROGRAMS ARE BASIC ED, SPECIAL EDUCATION, FEDERAL PROGRAMS, THE STATE CATEGORICAL PROGRAMS, WHICH ARE LIKE LAB OR MULTILINGUAL EDUCATION, AND THEN OTHER SERVICES.
IT BREAKS IT DOWN. THE NEXT THREE SLIDES, WE'RE GOING TO BREAK DOWN EXPENDITURES IN THREE DIFFERENT WAYS.
SAME BOTTOM LINE NUMBERS, JUST DIFFERENT WAYS OF LOOKING AT IT.
THIS IS THE GRANULAR DETAIL OF THAT FIRST SLIDE.
THIS IS LOOKING AT THE BUDGETED EXPENDITURES BY MAJOR ACTIVITIES, TEACHING, TEACHING SUPPORT, OPERATIONS, ADMINISTRATION, AND PRINCIPALS OFFICE, WHICH INCLUDES ALL THE ADMINISTRATIVE ASSISTANCE AS WELL AS PRINCIPALS.
THE LAST WAY WE LOOK AT IT IS WHAT WE CALL MAJOR OBJECTS.
THIS ONE BREAKS IT DOWN BY CERTIFICATED SALARIES, CLASSIFIED SALARIES, BENEFITS SUPPLIES, MSOC SUPPLIES, PURCHASE SERVICES, TRAVEL, AND CAPITAL OUTLAY.
THEN I'LL SHOW YOU THE MSOC DISCLOSURE TOOL THAT PEGGY ALREADY TALKED ABOUT.
THIS SHOWS THAT THE STATE IS ALLOCATING US $6.3 MILLION FOR MSOC NEXT YEAR, AND WE'RE PROJECTED TO SPEND ABOUT 12.4 MILLION, SO WE'RE GOING TO HAVE A DIFFERENCE OF $6 MILLION.
THIS IS JUST A FOUR-YEAR PROJECTION.
WE USE THE STATE PREDICTED IPD JUST TO INFLATE, I THINK YEARS 2, 3, AND 4, WE KEEP A CONSISTENT INCREASE IN EVERYTHING.
THIS FIRST PAGE IS ENROLLMENT, AND WE KEPT IT RELATIVELY FLAT, WHICH IT HASN'T REALLY CHANGED OVER THE FOUR YEARS.
BUT THEN WE DID USE THE IPD INCREASES FOR REVENUE AND EXPENDITURES IN THESE NEXT PAGES.
I THINK THAT IS THE END IS THERE ANY QUESTIONS, OR DO WE WANT TO DO THOSE LATER DURING THE REGULAR MEETING?
>> WHY DON'T WE HOLD QUESTIONS UNTIL THE REGULAR PART OF THE MEETING IF THAT'S ALL RIGHT WITH YOU, HOLLY?
[00:20:01]
AND THANK YOU HOLLY AND YOUR TEAM FOR PUTTING THAT ALL TOGETHER, PARTICULARLY THE CITIZENS BUDGET, BECAUSE IT'S A LOT EASIER TO READ THAN IS THE F-195.WE WILL GO AHEAD AND ADJOURN THE SPECIAL MEETING, AND WE'LL TAKE A QUICK BREAK AND THEN RESTART WITH OUR REGULAR MEETING AT 6:10.
* This transcript was compiled from uncorrected Closed Captioning.