APPROVED 02-03-2025

Board of Education Finance Committee Meeting (Monday, January 13, 2025)

Generated by Nikkol Sipes on Tuesday, January 14, 2025

1. Board Finance Committee

A. Call to Order

Mr. Kelly called the meeting to order at 1:03 p.m.

B. Roll Call

Members Present: Zen Kelly, Kelley Cizek (attended virtually) , Sarah Douthit, Jason Tauriainen
Members Absent:
Other Members Present: Penny Vadla, Virginia Morgan, Tim Daugharty, Patti Truesdell, Dianne MacRae

C. Approval of Agenda

The January 13, 2025 finance committee meeting agenda was approved as presented.

D. Approval of Minutes 03-25-2024

The March 25, 2024 finance committee meeting notes were approved as presented.

2. Finance New Business

Ms. Hayes presented the FY26 Preliminary Budget to the committee. She noted that administration has been working on the balancing act software. She requests direction from the committee and the Board to narrow down and clarify certain variables parameters before releasing the software to the public. Mr. Kelly described the balancing act software and how the Board and administration will be using it as a tool to develop the FY26 budget like last year. Ms. Hayes provided a demonstration of the balancing act software. Mr. Tauriainen proposed putting a cap on PTR within the threshold of classroom sizes in the buildings. He also asked for clarification on the revenue variables. Ms. Hayes noted that last year there was no cap on revenue in balancing act and so many submissions only adjusted the revenue not expenditures. Mr. Holland noted that administration advised the finance department to adjust and increase the PTR variables as seen today to see if the district can handle these types of cuts and adjustments. Mr. Kelly was in the favor of locking the revenue option so that there is valuable feedback on adjustments to expenditures. He posed questions regarding when the balancing act could go live to the public. Ms. Hayes noted that administration would like to have input from the building administrators and then open to the public potentially even prior or around the beginning of the legislative session. Mr. Kelly noted that looking at the preliminary budget the Board will need to request the maximum funding from the Borough this year. Ms. Hayes provided what a BSA increase of 1000 dollars would provide for the budget and that it would still not fully cover the deficit the district is facing. Mr. Holland noted the official BSA increase that is being advocated for by the Alaska education organizations this year is 1808. Mr. Kelly requested Ms. Hayes provide further information and definition of Programatic Staffing Salaries and Benefits and further described the purpose. Mr. Tauriainen posed a question regarding utilities and pools and separating the pools individually. Ms. Hayes noted that the pools cannot be separated per pool. Mr. Kelly provided information from Mr. Lyon regarding costs saved by removing pools from the KPBSD budget and the savings would fall between 165,000-202,000 dollars. Mr. Daugharty requested clarification regarding District Office Certified and Support staff within the variables to adjust. Mr. Tauriainen proposed separating the IT department from the support staff. Ms. Hayes provided the FTE and positions as defined within balancing act per line item. Ms. Dendurent requested Ms. Hayes provide information regarding grant funded positions. Ms. Hayes spoke to several of these positions and that some are split between grant and general funds. Mr. Kelly posed a question regarding student nutrition services funds. Ms. Douthit posed questions regarding the School Locations line items. Ms. Hayes spoke to this. Ms. Douthit also posed a question regarding consolidating schools. Ms. Hayes spoke to this and that this would have to be addressed on an individual school basis as far as any cost savings. Ms. Morgan posed a question regarding the secure rural schools act. Ms. Hayes spoke to this and that these funds fall under the borough. Mr. Holland impressed upon the Board and the public the depth of the deficit the district is facing this year. Mr. Kelly noted the budget is 80 percent salaries and benefits and looking at the 20 percent of non salary and benefits expenditures is not going to be enough to balance the budget with the deficit the district is facing. He noted that the Board may need to consider school closures as an option. He noted that the decisions need to be made sooner than later. He encouraged Board Members to ask questions and provide feedback as soon as possible. Ms. Hayes noted that tenure contracts are upcoming forward this evening and wanted the Board to be made aware of those contracts. Mr. Kelly requested that Mr. Crabtree speak during the work session later this afternoon to speak to items on the agenda this evening.

3. Information Requests to Administration

There were none at this time.

4. Adjourn

Mr. Kelly adjourned the meeting at 1:57 p.m.