UNAPPROVED

Board of Education Finance Committee (Thursday, February 1, 2018)

Generated by Debbie Tressler on Friday, February 2, 2018

1. Board Finance Committee

A. Call to Order

10:02 a.m.

B. Roll Call

Present: Zen Kelly via video, Mike Illg via video (joined at 10:16 a.m.), Tim Navarre
Absent: Dan Castimore

C. Approval of Notes from Jan. 15, 2018

Approved as printed.

D. Healthcare Opt-out Information

Ms. Hayes discussed the health opt out reports. Mr. Kelly asked for clarification on the number of board members receiving health care coverage.

E. In-kind History

Ms. Hayes explained the in-kind report and how the fund balance is affected. Mr. Jones explained the changes in the in-kind regarding the Kenai Peninsula Borough Maintenance Department. The committee discussed what a healthy fund balance looks like.

Mr. Jones further explained the insurance sections of the report including worker's compensation insurance amounts.

F. Rollover 379 Funds 5-year history by location

Ms. Hayes explained the 379 fund report and how the fund works at school locations. She stated that schools have been asked about their plans for their fund, e.g. Smart Board replacement. The committee discussed whether or not there is a cap on the funds and for what purchases the money may be used. Ms. Hayes explained how the Soldotna Prep School fund was determined when the school first opened. Mr. Navarre suggested that the Smart Board replacement be a function of the IT department. Mr. Jones suggested Mr. Soderquist be invited to a future meeting to discuss this idea. Mr. Kelly clarified that school's current 379 fund balances will not be reduced; future funding amounts to schools may be reduced which would impact 379 fund growth. Ms. Hayes explained that FY18 funding will not change; FY19 supply budgets might be reduced, by a percentage.

G. FY18 PTR & FY19 PTR Scenarios

Mr. Jones explained the report. He stated that the administration does not plan to increase the PTR in kindergarten through 3rd grades. Mr. Kelly asked why middle schools take a large staff FTE increase between a 1 student PTR increase and a 2 student PTR increase, i.e. .5 to 2.5. Mr. O'Brien explained that in some secondary school locations, the assistant principal could be assigned the athletic director duties. Mr. Navarre stated that the PTR increase chart is a good thing to share with state legislators.

H. Fund Balance FY12 - 17

Mr. Jones explained the unassigned portion of the fund balance and things to consider when planning for spending. Mr. Navarre noted that overall, the fund is declining. Mr. Kelly asked what the current expectation is for FY19 assigned budget. Ms. Hayes estimated 1.5 - 1.7 for FY19 for unassigned and committed.

I. Curriculum Information

Ms. Hayes explained that this report is for supplies purchased by location 84 Curriculum. Mr. O'Brien stated that Education Elements is paid from this fund and FY19 will contain the final payment to the company. He discussed future savings in curriculum because of the Education Elements process. Ms. Hayes discussed the FY18 and FY19 budgeted amounts.

J. Information Requests to Administration

Mr. Kelly asked Mr. Jones for future agenda item suggestions. Mr. Jones stated that supplies and travel, are being considered for cuts although there is nothing significant to be considered at this point.

Mr. Kelly explained that he would like formal funding recommendations to come from the committee to the Board. Mr. Ill agreed. Mr. Navarre expressed concerns about limiting recommendations to the committee and suggested a full board recommendation might be a better idea. Mr. Kelly would like administration funding cut recommendations to be vetted by the committee before progressing.
Mr. Illg requested information on General Fund FY16, FY 17 actual expenditures and FY19 budgeted amounts for student activities, pool managers; and theater employees.
The committee discussed the recent bills proposed by Representative Paul Seaton and by Representative Les Gara regarding education funding.
The next meeting will be determined on Monday, Feb. 5 during the board meeting day.

Adjourn

11:48 a.m.