June 5, 2023 at 7:30 AM - Budget Committee Meeting

Description:  The purpose of this agenda item is to review the projected end of the year balance. The next agenda item (budget revisions) provides a clearer picture of the estimated end of the year balance. The fund 10 budget revision results in a positive balance of approximately $400,000. Administration would like to discuss the topic of the annual Fund 73 contribution at the July budget committee meeting. Fund 73 is the Employee Benefit Trust Fund. We have held off on making the payment for 2021-2022 until the end of the fiscal year. The main reason for holding off the payment was to determine whether or not these funds would be needed for 2022-2023 budget planning. We would need to make this payment by July 31, 2023. Administration will be seeking feedback from the committee on making this payment in July.

Description:  The purpose of this agenda item is to review the formal budget change process that will be presented to the School Board for approval in June. The budget change document is attached. 

All budget revisions are entered into the Skyward Financial System using the Skyward Budget Revision process. The budget revisions for 22-23 include: 

* changes in grant allocations (both Fund 10 and 27)
* changes to the State of Wisconsin Library Aid (Fund 10)
* increase in the district's utilities budget
* increase the district's transportation budget (to reflect the invoices that crossed fiscal years)
* increase miscellaneous revenues such as interest earnings, which had a significant increase from $10,000 to $500,000
* increase state special education categorical aid
* Fund 39 debt service budgets to record the new debt issued related to the November 2022 referendum
* transfer of funds between Fund 10 & 27
*fund 49 capital projects fund to record the transactions related to the November 2022 referendum
*fund 80 to reflect the increased costs of Warrior Media and to add a budget for Communications
*fund 50 to reflect the increased costs of food service operations due to inflationary increases and the final invoice from 21-22 that crossed fiscal years
*fund 21 to reduce revenues to reflect actual activity
*moved $1 million in property tax revenues from fund 39 to fund 10 to reflect the approval of the November 2022 operational referendum question
*added the special education teacher at Heritage to the expenditure budget that was approved in November

All budget revisions will be presented to the School Board for approval at the June 12th School Board Meeting. 

Description:  The purpose of this agenda item is to review the fund balance classifications. The School Board is annually required to approve fund balance accounts prior to the close of the fiscal year. I have attached the fund balance accounts that are currently being used, and were last presented to the school board at the conclusion of the 2020-2021 audit. Administration is recommending no changes. Please let me know if you have any questions on the fund balance classifications.

Description:  Brian Grabarski will be sharing information on a concept for base contract adjustments for specific teachers based on the years of experience that were awarded to them upon hire. The approximate cost is $150,000. Brian will be sharing specifics with the HR committee on June 7th. Brian will be at the meeting and can answer any questions. Brian has completed an initial calculation that is equal $141,678. This amount may change slightly as the verification of previous education/degrees continues. 

Description:  The purpose of this agenda item is to discuss the next steps in the 2023-2024 budget process. Attached please find the budget timeline. Please note that the Second Draft of the Budget will be presented at the regular June Board Meeting.

Description:  The purpose of this agenda item is to review the second draft of the budget for the 23-24 school year. I have attached the second draft of the budget for your review. Please note that the second draft of the budget is based on the following:
1. The $0/student increase in the per pupil categorical aid, with a $200/student increase in the revenue limit formula
2. An increase in the percentage of State Special Education Categorical Aid to 32.5% (from 30%)
3. The personnel cost line includes an inflationary salary increase of 7.5%, implementation of the teacher and classified staff compensation systems, a 0% increase in dental insurance rates, and a 3% increase for health insurance rates.
4. The capital maintenance projects are funded from Fund 49
5. The second draft includes an increase of 10 FTE, as outlined on page 13 of the document.
6. The debt service fund includes the new debt issued for the $175 million referendum.
7. All of the remaining budget requests have been placed on hold at this time.

The changes for the second draft of the budget include:
1. Grant allocations, if available
2. Updates to the Food Service budget (Fund 50), and other budgets as a result of School Board approved student fees
3. Updates to the gift fund (Fund 21)
4. Updates to the community service fund (Fund 80)
5. Updates to building/department revenue accounts and corresponding expense accounts
6. Updates to interest earnings to reflect actual from 22-23
7. Second draft of the budget is balanced, due to the increased interest revenues

The third draft of the budget in July will include:
1. Any new information on the 2023-25 state budget
2. Grant allocations
3. Staffing updates based on additional schedule changes, reallocation proposals or new positions
4. Updates to the Community Services budget (Fund 80)
5. Updates to the New Teacher program budget (Fund 99)

Please let me know if you have any questions on the second draft of the budget.

Description:  The purpose of this agenda item is to review the lease agreements for the 23-24 school year. I have attached the lease agreements for your review.

The district currently has leases with the Wisconsin Youth Company (K-4 after-school program for school year), Dane County (1 office at Heritage Elementary School), and the New Teacher Project (office space at Heritage Elementary School). We are recommending approval of a summer lease for the Wisconsin Youth Company this summer.
 
The administrative recommendation is to approve all four leases at the current rates with the Wisconsin Youth Company lease changing from $2,800 to $2,850 per building as well for summer school, the Dane County lease continuing at $75 per month, and the New Teacher Project lease continuing at $300 per month. 

Description:  Administration will review the 2023-24 wage increase discussion that is taking place with the human resource committee. We have copied over the notes and attachment for your review. 

The district budget planning process incorporated 7.5% employee wage increases for all employee groups.  The attached information provides estimates illustrating those associated costs.

Preliminary discussion about market-based wage adjustments in hourly employee groups and potential costing estimates for all employee groups except for teachers.

For reference to our earlier discussions:

April/May - Review internal and market-based adjustments for 22/23 wages using referendum funds.  Work collaboratively with the Teacher Compensation Committee on the process.
May - Review draft 23/24 wage increase plan
June - Approve 22/23 internal and market-based wage adjustments.
June - Approve 23/24 wage increases for Admin, Admin Support, Hourly Staff
July - Approve 23/24 wage increases for teachers *negotiation process dependent

Description:  Attached please find the proposed facility use fees for the 2023-2024 school year. The budget committee requested to table this agenda item at the May meeting. Administration has updated the 23-24 facility use fees to include the increases in custodial costs from last month, but to remove the facility use fee decreases that were presented last month.  Administration is recommending approval.

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