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[CALL TO ORDER]

[00:00:04]

>> [SPANISH] GOOD AFTERNOON. THIS MEETING IS NOW CONVENED.

THE TIME IS 12:01 PM.

BOARD MEMBERS PRESENT IN THE BOARD AUDITORIUM ARE TRUSTEE WADE, TRUSTEE GUIDRY, TRUSTEE CRUZ, TRUSTEE SANTOS, TRUSTEE HERNANDEZ, TRUSTEE BAKER.

I WOULD LIKE TO ASK EVERYONE TO PLEASE SILENCE ALL CELL PHONES.

WE'VE BEEN JOINED BY TRUSTEE [INAUDIBLE].

I WOULD LIKE TO OBSERVE A MOMENT OF SILENCE NOW IN MEMORY OF THE LIVES THAT WERE SO TRAGICALLY LOST THIS WEEKEND UVALDE.

OUR FIRST ORDER OF BUSINESS IS TO HEAR FROM SPEAKERS TO SPECIFIC AGENDA ITEMS.

[SPEAKERS TO AGENDA ITEMS]

WE HAVE THREE SPEAKERS WHO SHALL BE LIMITED TO TWO MINUTES EACH PER BOARD POLICY.

PLEASE SPEAK TO THE AGENDA ITEM YOU HAVE SIGNED UP FOR.

WE ALSO ASK THAT SPEAKERS STAY ON TOPIC AND REFRAINED FROM NAMING INDIVIDUALS, ESPECIALLY STUDENTS, AS THEIR IDENTITY IS PROTECTED UNDER LAW, BUT YOU MAY NAME YOUR OWN CHILD.

SPEAKER SHOULD PRACTICE NORMAL RULES OF DECORUM, OBSCENE LANGUAGE AND PROFANITY WILL NOT BE TOLERATED, IS A PUBLIC MEETING AND OUR STUDENTS ARE WATCHING.

ADDITIONALLY, DISRUPTIONS OF THE MEETING WILL NOT BE TOLERATED.

WE ASK THE AUDIENCE TO REFRAIN FROM INTERRUPTING SPEAKERS WHEN THEY PRESENT TO THE BOARD.

DURING THIS PORTION OF THE MEETING INTO PROMPTLY END THEIR REMARKS WHEN THE TIMER RINGS, INDICATING THE EXPLORATION OF THEIR TIME.

SPEAKERS WILL GENERALLY BE GIVEN TWO REMINDERS OF OUR PUBLIC COMMENT RULES.

IF THE SPEAKER CONTINUES TO VIOLATE THE RULES, AFTER THESE REMINDERS, THE SPEAKER WILL BE ASKED TO LEAVE THE MEETING.

ALL OUR REGISTERED SPEAKERS ARE SIGNED UP TO ADDRESS OUR WORKSHOP TOPIC, THE 2020, 2023 BUDGET.

OUR SPEAKERS WILL ADDRESS THE BOARD AND THE AUDITORIUM.

WE ASK THAT YOU PLEASE SPEAK DIRECTLY INTO THE MICROPHONE.

THE CLOCK ON THE WALL TO YOUR, THIS TIME IT WILL BE TO YOUR LEFT ON THE PODIUM.

WE WILL COUNT DOWN YOUR TIME AND WE'LL SIGNAL WHEN YOUR TIME IS UP.

[NOISE] WILL JEANETTE GARZA LINDNER, PLEASE COME TO THE PODIUM.

THE NEXT TWO SPEAKERS ARE JUDY [INAUDIBLE] AND GARY MONROE.

>> HI, GOOD AFTERNOON.

THANK YOU AGAIN FOR YOUR TIME.

GREAT TO SEE YOU ALL.

I WANT TO ACKNOWLEDGE AGAIN ALL THE WORK THAT EVERYONE HERE HAS BEEN PUTTING FORTH TO WORK THROUGH THIS BUDGET.

I KNOW A LOT OF INFORMATION HAS BEEN ASKED AND I CAN SEE THE PUSH TOWARDS TRANSPARENCY THAT WE'RE WORKING TOWARDS.

I REALLY APPRECIATE THAT AND HOPE THAT AS A COMMUNITY, WE RECOGNIZE THAT.

WITH THAT IN MIND, THE FOCUS ON TEACHER SALARY IS IMPORTANT.

IT SHOWS THAT WE DO PUT TEACHERS AS A PRIORITY, BUT OF COURSE IT IS MORE THAN SALARY.

I WANT TO MAKE SURE THAT WE ARE TALKING AND ADDRESSING THINGS LIKE THE TIME THE TEACHERS HAVE IN THEIR DAY TO DO THEIR JOB AND FOCUS ON THAT.

MORE TIME FOR TEACHING, LESS TIME FOR TESTING, AND MAKING SURE THAT THE FOCUS ON THAT IS BALANCED AND WE'RE WORKING TOWARDS THAT.

NEXT THING TO SUPPORT OUR TEACHERS IS CLEARLY STRONG, ACCOUNTABLE LEADERSHIP.

OUR TEACHERS THAT CAN ONLY PERFORM AS WELL AS A LEADERSHIP AT THEIR SCHOOLS.

WE SEE GREAT DISPARITIES BETWEEN THE OUTCOMES AT SCHOOLS WHERE WE HAVE STRONG LEADERSHIP AND WHERE WE DON'T.

I FEEL LIKE THAT IS IMPORTANT AND I WANT TO HEAR MORE ABOUT HOW WE'RE GOING TO ADDRESS THAT.

THIRDLY, BASIC SCHOOL OPERATIONAL NEEDS.

A TEACHER WON'T WANT TO WORK AT A SCHOOL WHERE THE AC DOESN'T WORK.

AC IN HOUSTON IS A BASIC RIGHT.

TOILETS, AC, DOORS THAT OPEN AND CLOSE AND LOCK APPROPRIATELY.

THESE ARE BASIC FUNCTIONAL ITEMS THAT WE SEE AS THEIR FUNDS ARE EARMARKED TO DO SOME OF THESE IMPORTANT IMPROVEMENTS.

IT'D BE GREAT AS A COMMUNITY TO SEE WHAT THESE PLANS ARE AND THAT THESE THINGS ARE COMING TOGETHER BECAUSE THIS ALSO INFLUENCES THE TEACHER'S DECISION ON WHERE THEY TEACH AND BECAUSE AGAIN, IT'S NOT JUST ABOUT MONEY.

FINALLY, OF COURSE, THERE'S A BIG ALL THIS DISCUSSION THROUGHOUT THESE BUDGET MEETINGS ABOUT ADDRESSING THE DEFICIT AND HOW WE'RE GOING TO FIX THIS IN THE LONG TERM.

I CAN'T EMPHASIZE ENOUGH THAT WHEN I'M LOOKING FOR, WHEN I HEAR DISCUSSIONS IS HOW HISD IS ADDRESSING OUR STUDENTS NEEDS BY REACHING OUT TO OUR LOCAL AND STATE LEADERSHIP TO MAKE SURE THAT THEY ARE HELPING TO ADDRESS THESE NEEDS THAT WE HAVE.

EVERY GAP IN A CHILD'S LIFE COMES INTO THE CLASSROOM AND HISD CANNOT CARRY THIS BURDEN ALONE.

I HOPE [NOISE] WE CAN SEE THAT THROUGH TOGETHER. THANK YOU.

>> THANK YOU FOR THIS OPPORTUNITY.

AS YOU-ALL ARE SIMILARLY INTERESTED IN TALKING ABOUT EQUITY, PLEASE NOTE, EQUITY COMMITMENT REQUIRE COLLABORATION, AND COLLECTIVE RESPONSIBILITY.

EQUITY AND HIGHEST STANDARD GO HANDS IN HAND.

QUOTING FOR OUR OWN CHIEF OF SCHOOL DR. WATTS.

FROM HER EXIT Q&A PUBLISHED IN CHARLOTTE MAGAZINE.

WHEN WE TALK ABOUT ROLLING OUT A CARUNCLE INDUSTRY-WIDE,

[00:05:01]

THAT'S NOT EQUITY, THAT'S EQUALITY.

WE'RE DOING THE SAME THING FOR EVERYONE.

EQUITY IS WHAT YOU'RE DOING DIFFERENT FOR THE KIDS WHO ARE NOT GETTING THE EXPERIENCE THEY NEED AND DESERVE.

HISD NEED TO VALUE THE PROGRAMS THAT ARE SUCCESSFUL INSTEAD OF FORCING DOWN THE SAME PRACTICES AT EVERY SCHOOL.

WE HAVE DISTRICT POLICIES ESTABLISHED BY THE DISTRICT ADMINISTRATORS WHOSE ONLY EXPERIENCE IS TO IMPROVE AN F&D RATE AT SCHOOLS.

NO EXPERIENCE IN MAINTAINING AP RATE AT SCHOOLS AND NO EXPERIENCING LARGE COMPREHENSIVE SCHOOL.

THIS POLICY, THIS PRACTICE HAS TO BE CHANGED.

I ASKED YOU TO LOOK AT THE SCHOOLS WHO MOST OF YOU ARE MV AND LEARN ABOUT THE HISTORY AND PROCESS THAT MAKE THEM SUCCESSFUL.

[INAUDIBLE] ELEMENTARY SCHOOL WAS ONCE ON A SCHOOL CLOSURES LIST.

IT TOOK THE RIGHT PRINCIPLES AND COMMUNITY SUPPORT FOR THEM TO GET WHERE THEY ARE TODAY.

THE CARNAL HOUR ONE LUNCH FOR ALL STUDENTS AT BELLAIRE HIGH SCHOOL ALLOW STUDENTS TO GO TO THE TEACHERS FOR TUTORIAL, RETEST, CLUB MEETINGS, RELATIONSHIP-BUILDING, MENTAL HEALTH COUNSELING BECAUSE BEFORE AND AFTER-SCHOOL HOUR OFFERINGS ARE NOT EQUITABLE TO ALL STUDENTS, ESPECIALLY THE LOW-INCOME POPULATION.

OTHER SCHOOL DISTRICT HAVE VISIBLE LAYER OVER THE YEARS AND MODEL THEIR PRACTICE.

TODAY BELLAIRE STUDENTS, HELD A WALK OUT IN SUPPORT OF THE PRINCIPAL WHO EXEMPLIFIED THE CARING ADULT.

HE CREATE A POSITIVE SCHOOL ENVIRONMENT AND RESPECTED THE SCHOOL CULTURE BASED ON STRONG RELATIONSHIP, PROVIDE A FOUNDATION FOR LEARNING.

STUDENT NEEDS THEIR CARING ADULT TO FEEL A SENSE OF SAFETY AND BELONGING IN ORDER TO THRIVE IN SCHOOL.

YOUR ACTIONS SPEAK LOUDER THAN YOUR WORDS.

PLEASE DON'T TURN YOUR BACK [NOISE] ON CHILDREN JUST BECAUSE IT'S ZIP CODES OF SCHOOL [INAUDIBLE].

>> GARY MONROE.

>> YOU VOWED TO SHOOK ME.

IN YOUR STRATEGIC PLAN, I SAID IT TWO MONTHS AGO.

HOW DO WE ADDRESS SCHOOL SAFETY? I'M RUNNING FOR PUBLIC OFFICE.

I'M THE ONLY PERSON RUNNING IN THE STATE OF TEXAS THAT HAS A WRITTEN PLAN ON HOW TO DECREASE GUN VIOLENCE IN YOUR NEIGHBORHOOD AND IN YOUR SCHOOLS.

YOU WANT THE OUTCOMES SCARE KIDS CAN'T LEARN.

SCARE TEACHERS CAN'T TEACH, BUT YOU'RE SITTING ON [INAUDIBLE].

YOU'RE SITTING ON IT.

I GAVE THE 12 YEARS AGO AND ONE OF THEM KIDS GOT SHOT ON THE CAMPUS.

I'M TELLING YOU YOU SIT IN ON IT, SO INSIDE OF YOUR PLAN, HOW TO USE SECURITIES CAMPUSES.

NOW YOU DO HAVE BOARD MEMBERS THAT WANT TO TAKE POLICE OFFICERS OFF CAMPUSES. DO IT.

SEND THEM TO OURS BECAUSE WE GOT 15, 20 GUNS ON OURS EVERY DAY.

THAT'S WHY WE'RE NOT WORRIED ABOUT NOTHING LIKE THAT HAPPENING AT OUR SCHOOLS BECAUSE IT WOULD BE A FULL FLEDGED GUNFIGHT, BUT THESE LILY WHITE SCHOOLS WHERE YOU THINK NOTHING IS GOING TO HAPPEN, THOSE ARE THE ONES THAT'S THE TARGETS.

I'M ASKING YOU.

PLEASE COME UP WITH A PLAN AND PUT IT IN YOUR BUDGET TO SECURE THESE SCHOOLS, MAN.

YOU DON'T LIKE THE MESSENGER, BUT EVERYTHING I HAVE SEEMED TO SAY COMES TRUE.

YOU ARE YOUR VOWED.

THESE LAST FEW DAYS OF SCHOOL, THEY'RE GOING TO BE ROUGH.

LOOK AT HOW MANY THREATS WE DID GET THE LAST 48 HOURS.

YOU GOT TO DO IT.

YOU GOT TO DO IT. IF YOU WANT THE PLAN, I'LL GIVE YOU THE PLAN.

ASK JONATHAN TRENT, ONCE WE WENT TO HIS SCHOOL, ACCORDING TO HIS INBOX, VIOLENCE DECREASED SIGNIFICANTLY.

SUITS AND TIES AND OR GET IT DONE.

YOU'RE GOING TO HAVE TO SEND SOME REAL SOLDIERS [NOISE] LINE THEM KIDS UP.

>> DO I HAVE A MOTION TO APPROVE THE MINUTES OF

[CONSIDERATION AND APPROVAL OF MINUTES FROM MAY 5, 2022]

THE SPECIAL MEETING HELD ON MAY 5TH, 2022.

>> SECOND SANTOS.

>> SECOND HERNANDEZ.

>> WE HAVE A MOTION BY TRUSTEE SANTOS AND A SECOND BY TRUSTEE HERNANDEZ.

PLEASE VOTE. JUST INDICATE WITH YOUR THUMB.

EIGHT FOR ZERO AGAINST ZERO ABSTENTIONS.

WE'VE BEEN JOINED BY TRUSTEE ALLEN AND BEFORE WE MOVE INTO THE WORKSHOP, SO TRUSTEES, AFTER SUPERINTENDENT HOUSE GIVES US PRESENTATION, SO I DON'T MISS ANY HANDS.

WE'RE GOING TO GO EVEN TRUSTEES FIRST AND THEN ODD TRUSTEES ON THE FIRST ROUND AND THEN ON THE SECOND ROUND WE'LL DO THE OPPOSITE.

THEN AFTER THE MEETING, WE DO HAVE A VERY SHORT CLOSED SESSION.

WE'LL NOW MOVE TO OUR WORKSHOP TOPIC,

[WORKSHOP TOPIC: 2022–2023 BUDGET]

THE 2022, 2023 BUDGETS.

SUPERINTENDENT HOUSE, DO YOU HAVE THE FLOOR.

>> THANK YOU, PRESIDENT CRUZ.

GOOD AFTERNOON, TRUSTEES.

TODAY WE'RE OF COURSE, LOOKING FORWARD TO WORKSHOP NUMBER 7 AS WE WORK TOWARDS AN EVENTUAL APPROVED BUDGET.

[00:10:06]

NEXT SLIDE, PLEASE. THERE WE GO.

AS I SHARED WITH YOU IN A COMMUNICATION EARLIER THIS WEEK, WE'RE PROPOSING TO ACCELERATE OUR COMPENSATION PACKAGE PLAN FOR HISD STAFF.

GIVEN THE TRENDS THAT WE'RE SEEING IN SURROUNDING DISTRICTS AS IT RELATES TO TEACHER AND STAFF PAY AND THE INCREASES THAT ARE COMING ALONG WITH THAT PAY.

WE BELIEVE THIS REVISED COMPENSATION PLAN WILL NOT ONLY KEEP US ON TARGET IN TERMS OF MOVING TOWARDS THE TOP OF THE COMPENSATION MARKET WITHIN THE REGION, BUT WILL PROVIDE US WITH CRITICAL ABILITY TO RETAIN AND ATTRACT WORLD-CLASS TALENT, AS IT READS IN COMMITMENT NUMBER 6.

WE WILL THEN REVISIT THE PROPOSED 2022, 2023 BUDGET WHICH REFLECTS THE ADJUSTMENTS TO THE COMPENSATION PACKAGE, AS MENTIONED.

WITH THAT, I'D LIKE TO HAND IT OVER TO OUR CHIEF TALENT OFFICER, CHIEF JEREMY GRANT SKINNER. JEREMY.

>> THANK YOU. I WILL BEGIN TODAY BY REVIEWING SOME KEY POINTS RELATED TO OUR ORIGINAL COMPENSATION PLAN THAT WAS ANNOUNCED IN THE FEBRUARY STRATEGIC PLANNING WORKSHOP.

AS WE'VE PRESENTED TO THE BOARD, THE ONLY SIGNIFICANT DRIVER OF INCREASED COSTS IN THE STRATEGIC PLAN IS WITHIN THE WORLD-CLASS TALENT COMMITMENT.

WE DEVELOPED A THREE-YEAR COMPENSATION PLAN THAT WOULD DRAMATICALLY SHIFT THE WAGE AND SALARY EXPERIENCE OF OUR EMPLOYEES.

THIS PLAN HAD A SERIES OF INPUTS.

THESE ARE ALL THE FACTORS THAT WE CONSIDERED IN DEVELOPING THE PLAN.

FIRST, WE CONDUCTED AND REVIEWED ANALYZES OF OUR CURRENT WAGES AND SALARIES COMPARED TO THE MARKET, ESPECIALLY AMONG OTHER NEARBY TEXAS SCHOOL DISTRICTS.

AS A REMINDER, THESE ANALYZES SHOWED THAT WE ARE SLIGHTLY BELOW THE MARKET FOR TEACHERS, SIGNIFICANTLY BELOW THE MARKET FOR MANY SUPPORT STAFF, AND LEADING THE MARKET IN OUR MINIMUM WAGE.

SECOND, WE CONSIDERED THE NUMBER AND AMOUNT OF RAISES EARNED BY HISD EMPLOYEES ACROSS ALL GROUPS OVER THE LAST SEVERAL YEARS.

SINCE 2016, RAISES HAVE BEEN INCONSISTENTLY APPLIED ACROSS OUR VARIOUS CATEGORIES OF EMPLOYEES, SOME GROUPS RECEIVED REPEATED PERCENTAGE INCREASES AND OTHERS HAVE NOT RECEIVED A RAISE IN MORE THAN FIVE YEARS.

THIRD, WE WERE GUIDED BY THE STRATEGIC PLAN ITSELF, RIGHTSIZING AND REGULARLY UPDATING COMPENSATION FOR HISD EMPLOYEES IS ONE OF THE STRATEGIES OUTLINED FOR THE STRATEGIC PLAN COMMITMENT.

WHILE IT'S NOT SHOWN ON THIS SLIDE, WE ALSO BUILT THIS COMPENSATION PLAN IN THE CONTEXT OF THE DISTRICT'S BUDGET.

WE NEEDED TO CONSIDER BOTH THE FACT OF A PREEXISTING STRUCTURAL ANNUAL DEFICIT THAT WOULD ONLY BE EXACERBATED BY COMPENSATION INCREASES WITHOUT ANY OTHER BUDGET CHANGES AND THE CURRENT REALITY OF A ONE-TIME AVAILABLE FUND BALANCE, ESSENTIALLY MONEY IN THE DISTRICT SAVINGS ACCOUNT.

SINCE THE FIRST BUDGET WORKSHOP, WHICH IS ABOUT 12 WEEKS AGO, WE'VE DISCUSSED THE ADMINISTRATION'S INTENTION TO LEVERAGE THE EXISTING AVAILABLE FUND BALANCE TO FILL IN THE GAP REFLECTED IN THE STRUCTURAL DEFICIT.

I'LL BRIEFLY SUMMARIZE THE ORIGINAL PLANS SINCE OUR REVISED PLAN IS BUILT FROM THAT ORIGINAL PLAN, WE SAID WE WERE GOING TO RAISE TEACHERS' SALARIES BY UPGRADING THE SALARY SCALE EACH YEAR FOR THREE YEARS AND GRANTING A STEP INCREASE EACH YEAR FOR THREE YEARS.

WE PLANNED TO RAISE PRINCIPAL AND ASSISTANT PRINCIPAL AND DEAN SALARIES BY TRANSITIONING TO FLAT RATES AND UPDATING THOSE FOR EACH YEAR FOR THREE YEARS.

WE PLANNED TO PROVIDE STEP INCREASES EACH YEAR TO OUR POLICE OFFICERS.

WE PLANNED TO UPDATE THE MASTER PAY SCALE, WHICH DETERMINES WAGES AND SALARIES FOR ALMOST EVERY OTHER EMPLOYEE IN THE DISTRICT, OUR SUPPORT STAFF.

THIS IS A PLACE WHERE OUR MARKET STUDY SHOWED THAT WE WERE OFTEN 20 PERCENT OR MORE BELOW THE REGIONAL MARKET.

WE WANTED TO ENSURE THAT WE MAINTAIN OUR STATUS AS A REGIONAL LEADER AMONG SCHOOL DISTRICTS AND OUR MINIMUM WAGE.

WHAT THIS LOOKS LIKE FOR TEACHERS IS ANNUAL INCREASES THAT WOULD RAISE THE MINIMUM STARTING SALARY TO 64,000 BY 2024, WHICH WOULD PUT US ABOVE THE REGIONAL AVERAGE, EVEN IF THE DISTRICTS AROUND US CONTINUED INCREASING ON THE TREND THEY'VE RECENTLY BEEN ON.

WE ALSO BUILT A TEACHER SALARY SCHEDULE THAT DIFFERENTIATES DIFFERENTLY TO BETTER TARGET SOME OF OUR FUNDING ON TEACHERS WITH A FEW YEARS OF EXPERIENCE WHERE WE WERE MOST BEHIND NOT PUTTING ALL OF OUR EGGS IN THE BRAND NEW TEACHER BASKET.

I WANT TO PROVIDE A LITTLE BIT MORE CONTEXT BOTH IN TEXAS AND BEYOND.

[00:15:02]

ALL ACROSS THE COUNTRY, TEACHER SALARIES ARE GOING UP.

TO BE CLEAR, OUR STARTING TEACHER SALARY WHEN WE PUT IT IN THE BROADER CONTEXTS ACROSS THE COUNTRY IS ACTUALLY VERY HIGH COMPARED TO MOST DISTRICTS.

THE NATIONAL CENTER ON TEACHER EQUALITY LAST YEAR HAD A REPORT ABOUT THE 10 HIGHEST STARTING SALARIES IN THE COUNTRY, EIGHT OF THOSE WERE IN TEXAS.

WE ARE COMPETING WITH A REGIONAL MARKET THAT IS WELL ABOVE WHAT IS TYPICAL ACROSS THE COUNTRY FOR FIRST-YEAR TEACHERS.

THERE HAVE ALSO BEEN A LOT OF HEADLINES THIS YEAR ABOUT PLACES AROUND THE COUNTRY THAT ARE RAISING SALARIES BY VERY LARGE PERCENTAGES AND TO BE FRANK, THESE ARE PLACES THAT CURRENTLY COMPENSATE THEIR TEACHERS VERY POORLY.

FLORIDA, FOR EXAMPLE, ANNOUNCED THEY ARE INVESTING A BILLION DOLLARS TO RAISE THEIR MINIMUM TEACHER SALARY AND WHAT THEY'RE TRYING TO DO IS RAISE IT TO $47,000.

WE HAVE A STARTING POINT OF SOME STRENGTH AND WE KNOW THAT WE'RE COMPETING IN A VERY TOUGH MARKET LOCALLY.

WHEN WE ALSO SHARED BEFORE WHAT THIS LOOKS LIKE FOR OTHER LARGE TEXAS ISDS, AND AT LEAST ONE OF THEM HAS ANNOUNCED THEIR PLANS FOR THE UPCOMING SCHOOL YEAR.

YOU CAN SEE WITH DALLAS, FORT WORTH, SAN ANTONIO, AND AUSTIN WHAT THEIR STARTING TEACHER SALARY EITHER CURRENTLY IS OR IS PROPOSED TO BE FOR THIS UPCOMING YEAR.

THEN YOU CAN SEE WHAT IT IS IN SOME OTHER LARGE URBAN DISTRICTS ACROSS THE COUNTRY TO THE POINT SHARED BEFORE.

IN SOME PLACES THAT EVEN COST MUCH MORE, THEY ARE NOT YET AT THE $59,000 THAT WE ORIGINALLY PROPOSED.

WE'VE SHARED SINCE THE BEGINNING OF APRIL A LINK WHERE EVERY TEACHER IN THE DISTRICT COULD SEE WHAT THEIR TRAJECTORY OF SALARY WOULD BE OVER THE NEXT THREE YEARS.

THIS IS UPDATED TODAY TO REFLECT OUR REVISED SALARY PLANS SO ANY TEACHER WHO GOES TO THAT LINK CAN SEE THEIR TRAJECTORY OVER THE NEXT THREE YEARS ALIGNED WITH OUR REVISED PLAN, WHICH I'LL TALK ABOUT IN A MOMENT.

OF COURSE, WE ARE IMPLEMENTING A COMPENSATION PLAN AND OTHER PRIORITIES IN OUR STRATEGIC PLAN IN PART TO MAKE SURE THAT WE CAN RETAIN MORE OF OUR TEACHERS AND TO DO SO AT A TIME WHERE THERE IS A CONSTANT POSSIBILITY THAT THIS GREAT RESIGNATION WILL INDEED REACH OUR DOORS.

LIKE MANY SIMILAR DISTRICTS, OUR TEACHER RETENTION RATE IS HOVERED IN THE MID 80 PERCENT IN RECENT YEARS, THIS MEANS THAT THE CHART HERE SHOWS THAT IN EACH OF THE LAST THREE YEARS, THE NUMBER OF TEACHERS WHO FINISHED THE YEAR, BUT THEN DON'T RETURN FOR THE NEXT YEAR HAS BEEN BETWEEN 1300-1700.

THIS IS WHAT WE ARE FOCUSED ON IMPROVING WE PUBLICIZE OUR PLAN FOR BASE SALARIES, OUR PLANS FOR CRITICAL SHORTAGE AREA STIPENDS, AND INTRODUCE OUR HISD HENCE RETENTION INCENTIVE THIS SPRING.

AN EARLY INDICATOR SUGGESTS THAT WE CAN BEGIN MOVING THE NEEDLE ON TEACHER RETENTION THIS YEAR.

WHAT YOU SEE ON THE RIGHT SIDE OF THIS SLIDE IS THAT, AS I BELIEVE I SHARED HERE BEFORE, 93 PERCENT OF OUR TEACHERS INDICATED THEY PLAN TO COME BACK NEXT YEAR, AND MORE THAN 8,000 OF OUR TEACHERS BEYOND THAT SAID THAT THEY COMMIT TO TEACH IN HISD FOR AT LEAST THREE YEARS.

FINALLY, TO CLOSE OUT A REVIEW OF OUR ORIGINAL COMPENSATION PLAN, THIS SHOWS THE TOTAL COSTS IN EACH OF THE NEXT THREE YEARS.

ON THE LEFT, YOU SEE THE 82.7 MILLION DOLLAR COST PER YEAR ONE, THIS SUMMER'S RAISES IN ORANGE.

THAT ADDITIONAL ORANGE COSTS THEN REPEATS, OF COURSE, EACH YEAR THEREAFTER AND YOU CAN SEE THAT IN THE ORANGE PART OF THE BARS FOR THE SECOND, AND THIRD YEARS OF OUR PLAN.

IN YEAR TWO, WITH THE ADDITIONAL 63 MILLION DOLLAR INCREASE, THE TOTAL NEW COMPENSATION COST IS 145 MILLION DOLLARS AND BY YEAR THREE, THE TOTAL NEW COST IS 208 MILLION DOLLARS.

THAT WOULD BE AN ANNUALLY RECURRING 208 MILLION DOLLARS AT THAT POINT.

WHEN WE ONLY LOOK AT THE COST OVER THE COURSE OF THESE THREE YEARS.

THIS IS A 436 MILLION DOLLAR INVESTMENT IN COMPENSATION FOR OUR EMPLOYEES.

I WANT TO SHIFT AND TALK ABOUT OUR REVISED PLAN AS OF TODAY.

AS SUPERINTENDENT, [INAUDIBLE] SHARED IN HIS INTRODUCTION, WE ARE NOW PROPOSING TO IMPLEMENT OUR THREE-YEAR COMPENSATION PLAN MORE QUICKLY.

TO BEGIN WITH THE BOTTOM LINE FROM A BUDGET PERSPECTIVE, THIS SLIDE SHOWS THAT WE WILL ACHIEVE THIS BY USING AN ADDITIONAL 52 MILLION DOLLARS IN ESSER FUNDS IN THE UPCOMING FISCAL YEAR.

THIS WILL ENABLE US TO RAISE WAGES AND SALARIES MORE QUICKLY WITHOUT ADDING TO THE TOTAL GENERAL FUND COST OF COMPENSATION BEYOND WHAT WE ORIGINALLY PLANNED.

JUST A SMALL NOTE, THIS ONE-TIME ADDITION OF 52 MILLION DOLLARS IS DIFFERENT FROM THE 63 MILLION DOLLARS THAT WE'VE SUGGESTED IT WOULD COST BEFORE, TO DO THIS, AND THAT IS BECAUSE THE YEAR

[00:20:01]

TWO COST INCLUDES THE COST OF AN ADDITIONAL STEP INCREASE FOR TEACHERS, AND OUR REVISED PLAN WOULD CONTINUE TO GRANT ONE-STEP INCREASE THIS SUMMER AND ANOTHER STEP INCREASE NEXT SUMMER.

TO LOOK AT THIS ACROSS GROUPS.

TO SUMMARIZE THIS FOR TEACHERS, THIS WILL BE WE'RE APPLYING ABOUT A 10 PERCENT AVERAGE COST OF LIVING ADJUSTMENT TO THE STEPS OF THE TEACHER SALARY SCALE THIS SUMMER AND GRANTING A STEP INCREASE.

THEN IN 2024, IN THE ORIGINAL YEAR THREE OF OUR PLAN, WE WOULD THEN APPLY ABOUT A FOUR PERCENT COST OF LIVING ADJUSTMENT.

WE WILL SEE THE DETAILS OF WHAT THAT LOOKS LIKE LATER.

I'VE ALSO MENTIONED BEFORE THAT WE'VE RESTRUCTURED AND CHANGE THE WAY THE STEP INCREASES WORK SO WELL TODAY WE HAVE SOME STEPS THAT ARE AS LOW AS $150.

THE 95 PERCENT OF THE STEPS IN THE UPDATED SCALE ARE AT LEAST $500 WHICH IS A LEADING STEP INCREASE ACROSS THE REGIONAL MARKET.

FOR PRINCIPALS AND ASSISTANT PRINCIPALS, WE WOULD UPGRADE THE FLAT RATES BY MORE THIS SUMMER AND THEN IMPLEMENT YEAR THREE AND YEAR THREE OF THE PLAN.

AGAIN, THIS INCLUDES THE COMPLEXITY FACTOR AND PRINCIPAL EXPERIENCE FACTOR.

WE STILL PLAN TO IMPLEMENT THREE ANNUAL STEP INCREASES FOR POLICE OFFICERS.

FOR UPDATING THE MASTER PAY SCALE WE WOULD UPDATE IT SIMILAR TO TEACHERS AND PRINCIPALS IN NOW TWO PHASES.

ONE IS THE SUMMER AND THE SECOND TIME IN 2024.

AGAIN, WE WANT TO MAINTAIN OUR REGION LEADING STATUS FOR THE MINIMUM WAGE AND HOW THIS LOOKS NOW FOR THE SUMMER IS EVERYONE ON OUR MASTER PAY TABLE EXCEPT FOR ONE SALARY GRADE, WHICH WE'LL SHOW LATER, WILL HAVE A MINIMUM WAGE IN THE UPCOMING YEAR OF AT LEAST $15.

[NOISE] [BACKGROUND] FROM THE TIME WE INTRODUCED OUR STRATEGIC PLAN AND IN EARLIER BUDGET WORKSHOPS, WE'VE HIGHLIGHTED THAT THIS IS A COMPREHENSIVE APPROACH TO UPDATING COMPENSATION FOR EMPLOYEES ACROSS ALL GROUPS.

I WANT TO JUST NAME A COUPLE OF REASONS OF THIS IS PARTICULARLY IMPORTANT.

THIS MAKES SURE THAT WE CAN NOT ONLY NOT REPEAT BUT ALSO OVERCOME SOME OF THE IMPACT OF SOME PAST INCONSISTENCY AND WHO GOT RAISES AND HOW OFTEN.

ONE OF THESE WE'VE TALKED ABOUT BEFORE, WHICH IS WE HAVE COMPRESSED OUR MASTER PAY TABLE SO THAT THERE ARE EIGHT DIFFERENT SALARY RATES.

PEOPLE ACROSS VERY DIFFERENT RANGE OF JOBS THAT CURRENTLY ARE AT THE SAME MINIMUM RATE.

WE WANT TO MAKE SURE THAT THROUGH OUR COMPENSATION PLAN, WE CORRECT THAT PROBLEM, THAT HAS BEEN IN PLACE FOR A NUMBER OF YEARS NOW.

WE ALSO WANT TO ENSURE THAT POSITIONS THAT HAVE SIMILAR QUALIFICATIONS AND HAVE SIMILAR DUTIES ARE ACTUALLY PAID SIMILARLY, EVEN WHEN SOMETIMES THOSE ROLES ARE PAID ON DIFFERENT SCALES.

SPECIFICALLY, WE HAVE TEACHERS WHO TRANSITIONED TO POSITIONS ON THE MASTER PAY TABLE WHERE THOSE TWO SCALES HAVE NOT KEPT IN LINE.

WE WANT TO MAKE SURE THAT WE CAN MAINTAIN AN INCREASE EQUITY THROUGH OUR CHANGES AS WELL.

TO FOCUS A BIT MORE ON TEACHERS SPECIFICALLY, THIS SHOWS WHAT THE REVISED TEACHER SALARY SCHEDULE WILL BE FOR THE UPCOMING SCHOOL YEAR.

IT INCLUDES A MINIMUM TEACHER SALARY OF $61,500 AND RETAINS THE CHANGES THAT WE ALREADY PROPOSED TO THE STRUCTURE OF THIS SCALE.

THIS RESPONDS TO FINDINGS FROM A COMPENSATION STUDY THAT SHOWED THAT WE WERE LEAST COMPETITIVE WITH OTHER DISTRICTS AROUND STEPS 3, 4, 5 UP TO STEP 10.

THIS TEACHER SALARY SCHEDULE RAISES THE MAXIMUM BASE SALARY FOR A 10 MONTH TEACHER THIS SUMMER TO $87,500.

WE KNOW WE HAVEN'T SAID THIS AS EXPLICITLY BEFORE.

THE TEACHER SALARY SCHEDULE IS THE BASIS FOR PAY FOR A NUMBER OF OTHER CERTIFIED EDUCATOR POSITIONS LIKE COUNSELORS, LIBRARIANS AND OTHERS.

THESE RAISES APPLY TO THOSE CATEGORIES OF EMPLOYEES AS WELL.

LOOKING OVER TIME AND ZEROING IN FOR A MOMENT JUST ON BRAND NEW TEACHERS THIS GRAPH SHOWS THAT WE'RE CONTINUING A TRAJECTORY OF INCREASED STARTING SALARIES FOR TEACHERS, WHILE INCLUDING THE BIGGEST INCREASE IN DECADES, IF NOT EVER.

A FIRST-YEAR TEACHER THIS FALL WILL EARN $7,131 MORE THAN A FIRST-YEAR TEACHER EARNED JUST IN THE 2020-2021 SCHOOL YEAR.

TO BROADEN THIS AWAY FROM JUST BRAND NEW TEACHERS, THE REVISED COMPENSATION PLAN, IN SUMMARY,

[00:25:03]

WILL TRANSLATE TO AN 11 PERCENT AVERAGE RAISE FOR TEACHERS THIS SUMMER.

IN 2023, TEACHERS WILL RECEIVE A STEP INCREASE AND THEN IN 2024, WE'LL IMPLEMENT YEAR THREE OF OUR PLAN, WHICH WILL BE AN AVERAGE INCREASE OF MORE THAN $3,000.

YOU CAN SEE HIGHLIGHTED HERE THAT 11 PERCENT THIS SUMMER TRANSLATES TO AN AVERAGE INCREASE OF MORE THAN $6,600.

HERE YOU CAN SEE SOME STEPS SPECIFIC SALARY TRAJECTORIES FOR THREE SPECIFIC TEACHER EXAMPLES.

I'LL JUST HIGHLIGHT FOR YOU THE MIDDLE LINE, THE LIGHT BLUE LINE.

THIS IS A TEACHER ON STEP 9.

THAT'S ACTUALLY THE MEDIAN EXPERIENCE FOR CURRENT TEACHER.

IT'S THE AVERAGE TEACHER TODAY.

YOU CAN SEE HOW THAT TRAJECTORY HAS LOOKED AND WE'LL LOOK.

YOU CAN SEE THE INCREASE HAS BEEN MUCH MORE SIGNIFICANT BOTH FROM THE RAISE THAT WAS IMPLEMENTED THIS YEAR AND THE RAISES THAT ARE PROPOSED NOW IN THIS REVISED PLAN.

EARLIER THIS YEAR, WE SHARED FINDINGS SOME OF THE COMPENSATION STUDY ON HOW WE COMPARE AT VARIOUS LEVELS OF EXPERIENCE ON OUR TEACHER SALARY SCHEDULE WITH OTHER NEARBY DISTRICTS.

FOR EARLY CAREER TEACHERS, WE WERE AT THE BOTTOM AND THEN WE GOT A BIT BETTER FOR TEACHERS WITH 15 PLUS YEARS OF EXPERIENCE.

TO BE CLEAR, THESE OTHER DISTRICTS HAVE NOT RELEASED A FULL TEACHER SALARY SCHEDULE AND THE WAY THAT WE HAVE, AND THEREFORE, THE OTHER DISTRICTS HERE HAVE NOT BEEN UPDATED.

THE GOLD ROW IS OUR UPDATE.

THIS SHOWS WHAT OUR TEACHER SALARY WILL BE AS STEP 0, STEP 5, STEP 10, STEP 15, AND STEP 20 FOR THE UPCOMING YEAR.

IT SHOWS THAT WE WILL BE LEADING THE WAY AND EVEN AFTER ANY OTHER DISTRICT FINALIZE THEIR OWN TEACHER SALARY SCHEDULES, WE FULLY EXPECT THAT IT WILL AT LEAST BE IN THE TOP QUARTILE AT EVERY ONE OF THESE LEVELS OF EXPERIENCE.

THE NEXT FEW SLIDES ARE REALLY FOR YOUR REFERENCE.

FOR YOUR REFERENCE WE WANT TO SHOW THE SALARY SCHEDULES FOR A RANGE OF GROUPS OF EMPLOYEES, BEGINNING WITH TEACHERS.

I SHOWED ON AN EARLIER SLIDE WHAT THIS LOOKS LIKE NEXT YEAR.

HERE YOU CAN SEE THE TEACHER SALARY SCHEDULE FOR EACH OF THE NEXT THREE YEARS.

AGAIN, THE SCALE ITSELF WILL REMAIN THE SAME IN 2022-'23 AND 2023-'24, AND THEN WILL BE UPGRADED AGAIN IN 2024.

UNDER THE REVISED PLAN, THE BASE SALARY FOR PRINCIPALS WILL BE 108,500 FOR ELEMENTARY PRINCIPALS, 114,000 FOR MIDDLE SCHOOL PRINCIPALS, 124,000 FOR SPECIALTY HIGH SCHOOLS, AND 139,000 FOR COMPREHENSIVE HIGH SCHOOLS.

THESE SALARIES ALSO WILL INCLUDE THE SCHOOL'S COMPLEXITY FACTOR, WHERE A PRINCIPAL'S SALARY CAN GO UP BY UP TO $7,000 AND THEN AN EXPERIENCE FACTOR WHERE BASED ON THE NUMBER OF YEARS THEY'VE BEEN A PRINCIPAL IN THE DISTRICT THEIR SALARY YOU CAN GO UP BY UP TO 5,000 MORE.

PRINCIPALS SALARIES NEXT YEAR WILL RANGE FROM $108,500 MINIMUM TO $151,000 THE MAXIMUM.

THE SAME STRUCTURE APPLIES FOR APS AND DEANS.

THIS SHOWS A 12-MONTH AP AND DEAN SALARIES.

AGAIN, INCLUDING A COMPLEXITY FACTOR AND ASSISTANT PRINCIPAL EXPERIENCE FACTOR.

ASSISTANT PRINCIPAL SALARIES NEXT YEAR WILL RANGE FROM 82,246-99,213.

AS A REMINDER, ALMOST ALL OTHER EMPLOYEES IN THE DISTRICT ARE PAID ACCORDING TO THE MASTER PAY TABLE.

EACH JOB TITLE IS ASSOCIATED WITH A SALARY GRADE BETWEEN GRADE 15 AND GRADE 37.

THIS SLIDE SHOWS, THE FIRST HALF OF THOSE GRADES 15-25.

JUST AS ONE EXAMPLE SALARY GRADE 15 REPRESENTS CUSTODIANS.

YOU'LL SEE HERE AGAIN THAT, ON THE LEFT SIDE EIGHT GRADES ALL CURRENTLY START WITH A $14 PER HOUR WAGE.

THE FIRST THREE GRADES 15, 16, AND 17 THAT'S NOT ONLY THE MINIMUM, IT'S THE MAXIMUM, SO EVERYONE WHO IS AT GRADES 15,16 AND 17 CURRENTLY EARNS THE SAME SALARY.

ON THE RIGHT YOU CAN SEE THIS SECTION OF THE MASTER PAY TABLE FOR THE UPCOMING YEAR.

I'LL SHARE A BIT MORE IN A COUPLE OF SLIDES BUT YOU CAN SEE THAT WE'RE CORRECTING THAT ISSUE BY SPREADING OUT THE MINIMUM, MIDPOINT, AND MAXIMUM ACROSS THE MASTER PAY TABLE.

HERE YOU CAN SEE AGAIN FOR REFERENCE THE REST OF THE MASTER PAY TABLE,

[00:30:04]

GRADES 26-37 REFLECT OUR PROFESSIONAL AND EXECUTIVE ROLES.

SORRY I HADN'T GONE INTO IT.

I WANT TO TAKE A MOMENT JUST TO TALK ABOUT THE TRAJECTORY FOR THE MINIMUM WAGE WHICH WE'VE LOOKED AT BEFORE.

THE ORANGE LINE THAT YOU SEE HERE, IS AGAIN $14 ALL THE WAY ACROSS, THIS SHOWS THAT FOR GRADES 15 UP TO GRADE 22 THE CURRENT MINIMUM IS $14 PER HOUR.

OUR REVISED PLAN DOES TWO THINGS AT ONCE, IT RAISES THAT MINIMUM WAGE FOR CURRENT EMPLOYEES AND IT RAISES IT MORE FOR EMPLOYEES WHEN THEY ARE AT A HIGHER GRADE SO WE'RE AGAIN, CORRECTING THIS ISSUE THAT OUR SUPPORT STAFF REPRESENTATIVES HAVE SAID HAS BEEN IN PLACE FOR YEARS.

GRADE 15 CUSTODIANS, THE MINIMUM WAGE FOR A CURRENT CUSTODIAN NEXT YEAR WILL GO FROM $14 TO $14.85.

EVERYTHING ELSE YOU CAN SEE ON HERE GETS ABOVE $15 AND IF YOU GO TO THE RIGHT YOU CAN SEE THAT WHILE THEY'RE A BRAND NEW EMPLOYEE TO THE DISTRICT WHO IS AT GRADE 22, EVEN THOUGH THEY'RE COMPLETING A JOB THAT HAS HIGHER QUALIFICATIONS THAT HAS MORE DUTIES, THEY WOULD CURRENTLY BE HIRED AT $14 AN HOUR.

IF ANYONE AT THAT LEVEL OF $14 AN HOURS HERE NEXT YEAR, THEY'LL GO UP TO $16.27, SO THE RAISE IS DIFFERENTIATED.

I DO WANT TO SAY JUST FOR EMPHASIS THAT ON THE LEFT YOU CAN SEE THAT WE CHOSE A SCALE HERE THAT STARTS AT $12 AND WHILE WE'RE ALREADY BEYOND THAT, THAT'S A NUMBER THAT MANY OF OUR COMPETITORS IN THIS REGION ARE EITHER AT OR TRYING TO GET TO.

AGAIN, THIS IS A PLACE WHERE WE ARE LEANING IN AND GOING BEYOND WHERE WE ARE ALREADY A MARKET LEADER.

COUPLE FINAL SLIDES ABOUT THE MASTER PAY TABLE, INCREASES FOR THIS UPCOMING SCHOOL YEAR IN OUR PLAN WE'RE DETERMINED AGAIN BY MARKET COMPARISONS AND HOW OFTEN THERE HAVE BEEN RECENT RAISES.

YOU CAN SEE ACROSS THE BOTTOM, THE GRADES IN OUR MASTER PAY TABLE AND THE HIGHER THE LINE IS THE HIGHER THE PERCENTAGE INCREASE IS FOR THIS UPCOMING YEAR.

YOU CAN SEE THAT THIS DOES INCREASE FOR GRADES AS YOU JUST SAW, GRADES 18, 19, 20, 21, 22 ARE HIGHER THAN GRADE 15 OR 16.

WE NEED TO ELEVATE THOSE MORE BECAUSE THEY HAVE NOT BEEN INCREASED AS MUCH AS GRADE 15 IN RECENT YEARS.

THAT CONTINUES INTO THIS MIDDLE SECTION WHERE THERE ARE EMPLOYEES WHO HAVE NOT RECEIVED A SINGLE RAISE IN SEVEN YEARS.

AT THE SAME TIME WE PUT IN PLACE A MAXIMUM, A CAP IN WHAT OUR DOLLAR AMOUNT INCREASE COULD BE SO THEN YOU SEE ONCE WE GET TO THE HIGHER LEVEL OF PROFESSIONAL JOBS THAT PERCENTAGE GOES DOWN.

WE'RE NOT GIVING THE HIGHEST PERCENTAGE RANGE RAISES TO TWO PEOPLE WHO ALREADY ARE STARTING AT A HIGHER LEVEL.

TO PUT THAT TO, AGAIN SHOW SOME EXAMPLES IN THE CONTEXT OF WHAT THIS HAS LOOKED LIKE SINCE 2016.

WHEN WE LOOK AT THE CUMULATIVE PERCENTAGE SALARY INCREASE SINCE 2016 NOW INCLUDING OUR REVISED PLAN, CUSTODIAN AS AN EXAMPLE ON THE LEFT WILL BE MAKING ALMOST 50 PERCENT MORE THAN THEY WERE MAKING IN 2016.

THE NEXT LINE YOU CAN SEE TEACHING ASSISTANCE.

WE WANTED TO PARTICULARLY ENSURE THEY WERE RAISING PAY SIGNIFICANTLY FOR TEACHING ASSISTANTS, AND THIS SUMMER WILL MAKE 29 PERCENT MORE THAN THEY MADE IN 2016.

TEACHERS WILL BE MAKING MORE THAN 30 PERCENT ABOVE WHAT THEY MADE IN 2016.

THOSE PROFESSIONALS ON THE MASTER PAY TABLE, THE LAST SLIDE SHOWED THEM NEAR THE TOP AND THAT'S BECAUSE THEY HAVEN'T RECEIVED A RAISE SO EVEN AFTER OUR IMPLEMENTATION OF THE PLAN THIS SUMMER SINCE 2016 THEY WILL NOW MAKE 18 PERCENT MORE AND SO ON.

THIS SHOWS IN PERSPECTIVE OF OVER A NUMBER OF YEARS HOW SALARIES OR WAGES HAVE CHANGED FOR A RANGE OF EMPLOYEES.

WE WANT TO TAKE A MOMENT TO GIVE AN UPDATE ABOUT HEALTH INSURANCE PREMIUM COSTS.

THIS IS SOMETHING THAT THE BOARD HAS ASKED ABOUT IN A RECENT SESSION AND WE SAID WE WOULD SOON HAVE AN UPDATE.

HISD IS CONTRIBUTING MORE TO EMPLOYEE PREMIUMS IN THE UPCOMING YEAR, THAN THIS PAST YEAR.

EVEN WHILE WE'RE MAKING THAT ADDITIONAL INVESTMENT, THERE IS NO NEED AT THIS TIME FOR US TO INCREASE EMPLOYEE PREMIUMS FOR EMPLOYEE ONLY HEALTH PLANS.

ANYONE WHO ELECTS A PLAN WHERE IT JUST COVERS THEIR OWN HEALTH INSURANCE,

[00:35:01]

THEY'LL HAVE NO INCREASE TO THEIR PREMIUMS IN 2023.

IN ADDITION TO THAT ALTHOUGH IN 2021, I TOLD YOU THAT WE ANTICIPATED A 10 PERCENT INCREASE FOR OTHERS, THE EMPLOYEE PREMIUM INCREASES FOR EMPLOYEES WHO COVER DEPENDENCE ON THEIR PLAN WILL GO UP BY LESS THAN THAT.

YOU SEE IN THIS CHART THAT DEPENDING ON WHETHER AN EMPLOYEE HAS A PLAN THAT THEY COVER ONE OR MORE CHILDREN AND OR A SPOUSE, WHAT THE PREMIUM INCREASE NEXT YEAR WILL LOOK LIKE AND THEN WE'RE SHOWING HERE WHAT THAT LOOKS LIKE IN TERMS OF A COST PER PAYCHECK.

AGAIN, WHETHER THEY FALL ON THE LOW-END OR HIGH-END OR THAT COST PER PAYCHECK DEPENDS ON THE PLAN THEY ELECT.

THAT GROUP THAT HAS EMPLOYEE ONLY PLANS IS ABOUT 70 PERCENT OF OUR EMPLOYEES, SO 69 PERCENT OF OUR EMPLOYEES WILL HAVE NO INCREASE TO THEIR PREMIUM NEXT YEAR.

THEN WHEN WE LOOK ACROSS ALL EMPLOYEES INCLUDING THOSE THAT HAVE THOSE OTHER PLANS THE AVERAGE EMPLOYEE PREMIUM INCREASE WILL BE THREE DOLLARS PER PAYCHECK IN 2023.

WHEN WE LOOK AT THIS ALSO IN TERMS OF A COST SHARING PERSPECTIVE ABOUT HOW MUCH HISD IS CONTRIBUTING TO EMPLOYEE PREMIUMS, OR TO PREMIUMS VERSUS THE EMPLOYEE CONTRIBUTION, NEXT YEAR WILL ACTUALLY BE SLIGHTLY INCREASING THE EMPLOYER COST-SHARE.

WE'LL GO FROM THE DISTRICT PAYING FOR 80 PERCENT OF PREMIUMS, TO THE DISTRICT PAYING FOR 81 PERCENT OF PREMIUMS. TO PUT ALL OF THIS IN CONTEXTS, OUR HEALTH COSTS ARE CONTINUING TO INCREASE JUST LIKE EMPLOYERS ALL OVER THE COUNTRY INCLUDING SCHOOL DISTRICTS.

THE REASON THAT THIS HAS BEEN POSSIBLE IS WE USE SOME SR FUNDS TO COVER SOME OF THE COVID RELATED HEALTH INSURANCE COSTS THAT OUR EMPLOYEES EXPERIENCED OVER THE LAST YEAR.

WE ANTICIPATE IN THE FUTURE THAT WE WILL NEED TO RAISE EMPLOYEE PREMIUMS IF HEALTH INSURANCE COSTS CONTINUE TO INCREASE AS THEY HAVE BEEN BUT WE WERE ABLE TO LIMIT THAT FOR CALENDAR YEAR 2023.

WITH THAT, BEFORE SHIFTING TO WHERE THIS FITS INTO THE OVERALL FY23 BUDGET, WE WANT TO ZOOM OUT FROM THE COMPENSATION PLAN FOR A MOMENT TO JUST PUT IT IN THE BROADER CONTEXT OF OUR WORLD-CLASS TALENT, STRATEGIC PLAN COMMITMENT, AND THE STRATEGIC PLAN MORE GENERALLY.

WITH THIS REVISION TO OUR COMPENSATION PLAN, WE REMAIN ON TRACK.

IN FACT, WE'LL NOW BE FURTHER ALONG WITH IMPLEMENTING OUR PLAN, AND WE WILL AS WE'VE SAID CONTINUE ONGOING ASSESSMENT OF COMPENSATION NEEDS STARTING NEXT YEAR.

WE'LL START FIGURING OUT WHAT IS NECESSARY AFTER THE 2024- 2025 SCHOOL YEAR.

WITH A STRONGER COMPENSATION FOUNDATION IN PLACE, WE'LL FOCUS OUR EFFORTS ON SOME OTHER ASPECTS OF OUR STRATEGIC PLAN THAT GO BEYOND JUST COMPENSATION.

FINALLY, I WANT TO END WITH A REMINDER OF THE WAYS THAT WE'LL BE MEASURING THE SUCCESS OF OUR WORLD-CLASS TALENT STRATEGIES.

WE BELIEVE THAT THE REVISED COMPENSATION PLAN WILL DIRECTLY SUPPORT PROGRESS ACROSS, AT LEAST FOUR MAYBE FIVE OF THE METRICS THAT WE SHARED WITH YOU BACK WHEN WE INTRODUCED THIS STRATEGIC PLAN. THANKS.

>> THANK YOU CHIEF, GRANT SKINNER.

AT THIS TIME I'D LIKE TO SWITCH GEARS AND THROW THINGS OVER TO CHIEF GLENN REED TO DO A COUPLE OF DIFFERENT THINGS.

FIRST OF ALL WE'RE GOING TO FOCUS SPECIFICALLY ON THE OVERALL BUDGET FOR THE 2022-'23 SCHOOL YEAR AND WE'LL START OFF THERE AND GO TO THE NEXT PIECE THEREAFTER. CHIEF REED.

>> GOOD AFTERNOON EVERYONE. CAN YOU ALL HEAR ME?

>> YEAH.

>> GETTING CLOSE, I GUESS.

FIRST THING I WANT TO DO IS JUST UPDATE EVERYONE ON PROPERTY VALUES, IF YOU REMEMBER AT OUR LAST WORKSHOP, LET YOU KNOW THAT WE WERE STILL WAITING FOR PROPOSITION 2 TO BE VOTED ON BY VOTERS.

THAT DID PASS, SO THERE IS THE EXEMPTION NOW FOR HOMESTEAD EXEMPTIONS HAS GONE FROM 25,000- 40,000, SO THAT TAKES US INTO ACCOUNT.

LAST TIME WE TALKED THE VALUES WERE 220 BILLION, THIS ONE SHOWS NOW IT'S DROPPED DOWN AT 217 BILLION, SO THAT HAS LOWERED THE PROPERTY VALUES FOR THE DISTRICT.

IT'S A 7.6 PERCENT INCREASE VERSUS A 9.3 PERCENT INCREASE THAT WE HAD PREVIOUSLY.

OF COURSE, IT WILL ALSO REDUCE THE DISTRICT'S TAX RATE.

ON THE NEXT SLIDE, THIS SHOWS THE MARKET VALUE,

[00:40:05]

AGAIN THAT ALSO WENT DOWN THERE. I'M SORRY, NOT THE MARKET VALUE.

MARKET VALUE STAYED THE SAME, BUT THE TAXABLE VALUE DECREASED BECAUSE OF THE EXEMPTION.

INSTEAD OF BEING A 10.2 PERCENT INCREASE IN VALUE, IT DROPPED DOWN TO A 6.8.

PRETTY SIGNIFICANT IMPACT TO WHAT FOLKS WOULD PAY SOME TAXES ON.

>> SORRY, CAN YOU JUST SLOW DOWN JUST A LITTLE BIT?

>> SORRY, SURE [LAUGHTER]

>> THANK YOU.

>> I'M GOING TO TALK A LITTLE BIT MORE ABOUT THE ACTUAL BUDGET.

FIRST, I WANT TO DO IS TALK A LITTLE BIT ABOUT THE DISTRICT'S REVENUES.

PROPERTY TAXES, OF COURSE, IS OUR PRIMARY SOURCE OF REVENUES IN THE DISTRICT.

THIS HAS BEEN UPDATED BECAUSE OF THE LOWERING OF THE VALUES DUE TO THE HOMESTEAD EXEMPTION.

ONE ITEM I DO WANT TO CALL OUT IN OUR LOCAL SOURCES IS THAT WE HAVE INCREASED SIGNIFICANTLY OUR INTEREST EARNINGS PROJECTIONS.

AS YOU ALL KNOW, EARLIER IN THE MONTH, THE FED RAISE RATES BY HALF A PERCENT.

WE'RE LOOKING AT WHAT WE THINK RATES ARE GONNA DO FOR THE NEXT 9-10 MONTHS.

THAT ACTUALLY INCREASE REVENUES BY ABOUT 20 MILLION DOLLARS, JUST FROM INTEREST ON WHAT WE ARE PROJECTING.

IF EVERYTHING COMES OUT AS FAR AS WHAT WE THINK, THEN THAT HAS AN INCREASE IN THE DISTRICT REVENUES AND OF COURSE INCREASED OR DECREASED OUR DEFICIT, SO THAT'S A GREAT CHANGE.

ALSO, OF COURSE, INCLUDED IN HERE, ONE THING I WANTED TO CALL OUT HERE, AND I'VE GOT IT HERE TO THE SIDE OF THE SLIDE, BUT WE DO HAVE SOME TEMPORARY SOURCES IN THIS BUDGET.

IN OUR REVENUES, WE DO HAVE 50 MILLION DOLLARS IN ESSER INDIRECT COSTS, THAT'S A REVENUE.

WE'LL TALK A LITTLE BIT MORE ABOUT IT IN A MINUTE, BUT WE'VE ALSO BUILT IN HERE 52 MILLION DOLLARS AND TRANSFERS OF SALARIES OUT TO ESSER TO HELP FUND BRINGING THE YEAR TO COMPENSATION PACKAGE INTO 2023.

IF YOU NOTICED ON THE WHERE IT SAYS COMPENSATION PACKAGE ALL EMPLOYEES THAT 132 MILLION, REMEMBER THAT WAS 83 BEFORE.

WHEN WE WERE DOING THIS EARLIER ON IT WAS 83.

TO FUND THE ADDITIONAL COSTS, WE WILL TRANSFER OUT SALARIES.

WE'VE GOT RIGHT NOW A 100 MILLION DOLLARS AND REALLY IS WHAT IS TEMPORARY FUNDING THIS BUDGET RIGHT NOW.

>> SORRY, GLEN, DID YOU SAY 180 MILLION?

>> ONE HUNDRED AND TWO. ON THE RIGHT-HAND SIDE OF THE CHART UP THERE, YOU SEE THE 50 MILLION DOLLARS INDIRECT COSTS AND THEN THE TRANSFER TO ESSER IS 52, SO IT'S 102.

>> [BACKGROUND] [LAUGHTER]

>> I'M NOT GOING TO GO THROUGH EVERY SINGLE ONE OF THESE LINES.

THE COST ON THE APPROPRIATION INCREASES OUR LARGEST INCREASES PERFORMANCE CONTRACT SCHOOLS, WHICH IS REALLY INCREASING ENROLLMENT FROM TEXAS CONNECTIONS ACADEMY.

THEN OF COURSE, OUR DECREASES, WE HAVE THAT CAPITAL LEASE RECOGNITION, THAT IS REVENUE NEUTRAL.

THAT'S JUST AN ACCOUNTING ENTRY, SO IT HAS REALLY NO IMPACT ON THE BUDGET.

THEN OF COURSE, WE HAVE THE 60 MILLION DOLLARS IN DEPARTMENT CUTS THAT WE TALKED ABOUT IN OUR LAST BUDGET WORKSHOP.

FOR 22-23, THE DEFICIT RIGHT NOW IS 100 MILLION DOLLARS.

WE ARE EXPECTING AT LEAST AROUND 70 MILLION DOLLARS IN UNSPENT DOLLARS, THE MAJORITY OF THOSE WE STILL THINK WE'LL PROBABLY COME FROM SALARIES, FROM VACANCIES, VACANCIES THAT HAPPEN THROUGHOUT THE YEAR AND SO FORTH, WHICH BRINGS OUR DEFICIT DOWN TO 30 MILLION DOLLARS, WHICH WOULD COME FROM OUR DISTRICT'S FUND BALANCE.

AGAIN, I JUST WANT TO REMIND EVERYONE, THOUGH, WE DO HAVE 100 MILLION DOLLARS IN HERE THAT'S REALLY TEMPORARY MONEY, SO THE DEFICIT, REALLY IS ABOUT 130, BUT WE DO HAVE THOSE ONETIME SOURCES THAT ARE FUNDING THE SHARES THIS YEAR'S BUDGET.

>> [NOISE] EXCUSE ME.

MAYBE.

WHOOPS. GOT IT.

OKAY. I'M MISSING A SLIDE I THINK. THERE WE GO.

YOU'VE ALL SEEN THIS SINCE THE BEGINNING OF OUR WORKSHOPS.

BUT REALLY TALKING ABOUT THE DISTRICTS STARTING FUND BALANCE,

[00:45:04]

THE DISTRICT HAS A TOTAL FUND BALANCE THAT'S MADE UP OF MULTIPLE THINGS.

IT WAS 997 MILLION DOLLARS AT THE BEGINNING OF THIS CURRENT FISCAL YEAR, BUT THAT'S BROKEN DOWN INTO SOME PIECES.

ONE OF THEM IS THE THREE MONTH RESERVE, WHICH IS IN BOARD POLICY THAT HELPS US PAY OUR BILLS AND SO FORTH UNTIL WE GET TAX COLLECTIONS IN DECEMBER, JANUARY, SO FORTH.

WE HAVE SOME NON SPENDABLE DOLLARS AND SOME DOLLARS THAT HAVE SOME RESTRICTIONS ON THEM.

BUT ANYTHING ABOVE THAT IS MONEY THAT WE CAN USE FOR MULTIPLE PURPOSES.

THAT 224 MILLION DOLLARS THEN WE, GO TO THE NEXT SLIDE, BECOMES OUR STARTING POINT IN 21-22 FOR DOLLARS THAT WE CAN USE.

RIGHT NOW, WE BELIEVE WE WILL HAVE ABOUT 90 MILLION DOLLARS, THEY WILL BE ABLE TO ADD INTO FUND BALANCE.

THAT'S FROM VACANT SALARIES, THAT'S FROM IF YOU REMEMBER, WE HELD BACK 75 PERCENT OF SCHOOL AND DEPARTMENT BUDGETS.

WE DID A CENTRAL OFFICE HIRING FREEZE, SO WE PUT MULTIPLE THINGS IN PLACE THAT DID INCREASE THOSE UNSPENT DOLLARS.

WE ALSO TRANSFERRED OUT SOME COSTS INTO INTO ESSER FOR COVID DEVICES THAT WE WERE PLANNING ON PURCHASING OUT OF GENERAL FUND THAT ONCE WE FOUND OUT WE HAD ESSER OR WE DIDN'T NEED TO PURCHASE THAT OUT OF GENERAL FUND DOLLARS.

ALONG WITH THAT THOUGH, THE BUDGET IS GROWING, OBVIOUSLY BECAUSE WE'RE INCREASING IT FOR SALARIES AND SO FORTH.

THAT MEANS THE BOARDS RESERVE GOES UP.

WHAT THAT BASICALLY DOES MEANS, IS THAT IT CONSUMES WHAT YOU CAN USE IN THE NEXT YEAR BECAUSE IT GOES INTO THAT RESERVE.

THAT MEANS WE START OFF 22-23 THEN WITH THE 293 MILLION DOLLARS THERE ON THE RIGHT COLUMN.

THE BUDGET DEFICITS 30 MILLION, SO WE WOULD EXPECT THAT TO GO DOWN BY 30, AND THEN WE EXPECT JUST WHERE WE ARE NOW, THAT THE RESERVE THAT BOARD WE NEED NEXT YEAR WOULD GO UP BY ANOTHER 19.

OF COURSE, THAT'S ALL DEPENDENT ON WHAT THE BUDGET ENDS UP BEING NEXT YEAR. CAN GO UP OR DOWN.

THE ENDING FUND BALANCE WE WOULD EXPECT AT THE END OF 22-23 THAT WE WOULD BE WORKING FROM AS WE BUILD OUR 23-24 BUDGET WOULD BE 243 MILLION DOLLARS.

>> THANK YOU, CHIEF REED. AS YOU CAN SEE, THIS BUDGET MAKES SOME AMBITIOUS INVESTMENTS, AND WE'RE CONFIDENT THAT THIS IS THE TIME TO MAKE THESE INVESTMENTS, INCLUDING THE SALARY PACKAGE THAT YOU GUYS HAVE HEARD A LITTLE BIT ABOUT TODAY, WE'RE GRATEFUL THAT WE'RE ABLE TO LEVERAGE OUR FUND BALANCE AND FEDERAL FUNDS TO SUPPORT THESE IMPORTANT DECISIONS.

BUT WE DO KNOW THAT THERE'S MUCH MORE WORK AHEAD OF US.

WE'RE GOING TO MAKE CHANGE.

MAKE CHANGE THE TYPE OF TRANSFORMATION THAT WE REALLY WANT TO FOCUS ON OVER THE COURSE OF THE NEXT YEARS AHEAD.

NOW, AS YOU ALL KNOW, CONSTRAINTS ON PER STUDENT REVENUE HAVE BEEN OUTPACED BY GROWING COST OF EDUCATING OUR STUDENTS.

IN ANY ORGANIZATION COSTS GO UP OVER TIME WHETHER IT'S THE COST TO PAY EMPLOYEES, HEALTH INSURANCE COSTS OR GAS, OR EVEN FOR OUR BUSES.

YET, OUR STREAMS OF REOCCURRING REVENUE, THOSE WHICH WE CAN COUNT ON YEAR AFTER YEAR WE HAVE A FLAT.

IT'S BASICALLY BEEN FLAT FOR YEARS.

AS YOU'VE SEEN IN OUR CENTRAL OFFICE REDUCTIONS THAT CHIEF REED TALKED ABOUT EARLIER, WE STARTED THE PROCESS OF CHANGING OUR ORGANIZATION TO MAKE THIS WORK.

BUT WE HAVE TO BE MORE FOCUS AS WE MOVE FORWARD AHEAD.

WE ARE UNDERTAKING A MULTI-YEAR TRANSFORMATION IN WHICH WE WILL NEED TO THINK SMARTER, WILL NEED TO WORK HARDER TO ENSURE THAT THESE DIFFICULT DECISIONS ARE MADE IN A ORGANIZED MANNER TO ENSURE THAT WE CONTINUE TO PUT OUR STUDENTS AS WE'VE TALKED ABOUT, FIRST.

WE'RE COMMITTED TO LEAVE NO STONE UNTURNED AND IMPROVING THE EFFICIENCY AND EFFECTIVENESS OF OUR SCHOOL SYSTEM.

OUR GOAL OF REACHING A BALANCED BUDGET IS EXTREMELY CRITICAL.

BUT IT'S EXTREMELY IMPORTANT THAT IN ORDER TO DO THIS, THAT WE CONTINUE TO WORK SMART AND FOCUS OUR EFFORTS MOVING FORWARD IN JUST A MINUTE, I'M GOING TO HAVE OUR PARTNER FROM A&M TO COME UP AND TALK A LITTLE BIT ABOUT WHAT THAT'S GOING TO LOOK LIKE AND SOME OF THE CONVERSATIONS THAT WE'VE HAD.

I'M GLAD TO HAVE HIM HERE.

YOU CAN MOVE TO THE NEXT SLIDE.

AS WE'VE STATED BEFORE,

[00:50:02]

FOR US TO GET TO THE LEVEL OF FINANCIAL SUSTAINABILITY THAT WE SEEK LONG-TERM, EVERY OPTION MUST BE ON THE TABLE.

WHILE WE HAVE LIMITED OPPORTUNITIES TO INCREASE REVENUE, WE MUST EXPLORE EACH OPTION CAREFULLY AND PURSUE THE COMBINATION OF OPTIONS THAT BEST SUPPORTS OUR STUDENTS.

OUR KEY INVESTMENT IN STABILIZING AND IMPROVING REVENUE IS THE MOST CRITICAL TO OUR SUCCESS.

WE WILL SUPPORT, NURTURE, AND GROW OUR SCHOOLS TO BE CAPABLE, RESPONSIVE AND ACCOUNTABLE, AND COMPETITIVE AND ATTRACTING OUR STUDENTS, WHICH WE KNOW IS GOING TO BE IMPORTANT AS WE MOVE TOWARDS THE FUTURE.

WHILE WE FACE CHALLENGING DEMOGRAPHIC HEADWINDS, AS WE IMPROVE OUTCOMES AT OUR SCHOOLS, WE BELIEVE WE CAN STABILIZE OUR ENROLLMENT AND BRING STUDENTS AND REVENUES BACK TO HISD, AS WE KNOW IS EXTREMELY IMPORTANT.

WE'LL ALSO TAKE A CAREFUL LOOK AT ALL OF OUR REAL ESTATE HOLDINGS TO ENSURE EACH IS USED FOR ITS HIGHEST AND BEST USE.

WE WILL ALSO EXPLORE OPTIONS LEAST TO SELL PROPERTY AS APPROPRIATE AND PURSUE PUBLIC PRIVATE PARTNERSHIPS TO SUPPORT MAJOR INVESTMENTS AS WELL.

WE WILL NURTURE AND STRENGTHEN THE TRUST AND SUPPORT OF FAMILIES, VOTERS, TAXPAYERS BY ACHIEVING RESULTS FOR OUR COMMUNITY WITH TRANSPARENCY AND TRUST.

HISD WILL DEVELOP A RESPONSIBLE PROPOSAL TO STRENGTHEN OUR SCHOOLS WITH TAXPAYER SUPPORT, INCLUDING A FUTURE BOND ISSUE.

ONE NUMBER THAT JUMPS OUT AT ME THAT OUR CHIEF OPERATING OFFICER JUAN DE PAUL SHARED WITH ME HERE IN THE LAST 24 HOURS IS THAT WE HAVE OVER TWO BILLION DOLLARS IN DEFERRED MAINTENANCE IN HISD RIGHT NOW.

THAT IS HUGE.

SO THOSE PHONE CALLS THAT YOU ALL RECEIVE AS BOARD MEMBERS ABOUT THINGS THAT NEED TO BE FIXED IN SCHOOLS, AND FENCES NOT TO MENTION SECURITY THINGS THAT ARE TOP OF MIND RIGHT NOW.

WE'RE TWO BILLION DOLLARS BEHIND.

SO IT'S GOING TO BE VIABLY IMPORTANT MOVING FORWARD NOW.

SINCE 2017, OUR ANNUAL EXPENSES HAVE GROWN BY ABOUT $105 MILLION DUE TO RECAPTURE ALONE.

A CIRCUMSTANCE BASED IN THE CURRENT STATE SCHOOL FUNDING POLICY.

WE WILL CONTINUE TO ADVOCATE FOR EQUITABLE FUNDING FOR OUR SCHOOLS FROM THE STATE SO THAT LOCAL TAXPAYER FUNDS CAN STAY IN OUR PUBLIC SCHOOLS AND IN OUR COMMUNITY.

NEXT SLIDE. NOW ON THE EXPENDITURE SIDE, WE WILL CONTINUE TO WORK TO OPTIMIZE CENTRAL OFFICE SUPPORTS FOCUSING THOSE ON WITH THE HIGHEST VALUE OF STUDENTS, TEACHERS, AND CAMPUS LEADERS.

THIS WILL INCLUDE CONTINUED ENGAGEMENT WITH SCHOOLS, A BOTTOM-UP BUDGET JUSTIFICATION PROCESS, AND A CAREFUL LOOK AT SPENDING.

RELATED TO OUR IMPROVEMENT OF PROCUREMENT PROCESSES, WE WILL LEVERAGE SCALE ACROSS SCHOOLS AND DEPARTMENTS.

HOLD VENDORS ACCOUNTABLE TO OUTCOMES, IMPROVE QUALITY OF PRODUCTS AND SERVICES, AND INCREASE THE BUYING POWER OF OUR SCHOOLS AND DEPARTMENTS FOR IMPROVED MANAGEMENT PROCESSES.

RE-CONFIGURING AND RATIONALIZING OUR SCHOOL FOOTPRINT IS A PROCESS THAT WE WANT TO ENSURE THAT OUR COMMUNITIES ARE ENGAGED WITH US AS WE MOVE FORWARD INTO THE NEXT SCHOOL YEAR.

THIS WORK WILL BE CLOSELY ALIGNED TO OUR PLANS FOR OUR FUTURE BOND ISSUE AND WILL BE ROOTED IN ENSURING THAT EVERY STUDENT HAS THE OPPORTUNITY TO ATTEND A HIGH QUALITY SCHOOL THAT PROVIDES THE SUPPORTS NECESSARY TO ENSURE ACADEMIC EXCELLENCE AND OVERALL WELL-BEING.

ALSO I'VE STATED IN OUR PRIOR WORKSHOPS WE WANT TO REINVESTING AND REVISITING THE WEIGHTED FUNDED FORMULA AND ALLOTMENTS THAT THIS UPCOMING YEAR TO ENSURE EQUITY AND LONG-TERM SUSTAINABILITY IN THE WAYS THAT WE FUND OUR SCHOOLS.

NOW FINALLY STRENGTHENING OUR INTERNAL FINANCIAL MANAGEMENT CAPACITY AND SCHOOLS ORGANIZATION AND CENTRAL OFFICE WILL BE CRITICAL IN ENSURING THAT EVERY DOLLAR IS SPENT IN A WAY THAT MAXIMIZES STUDENT ACHIEVEMENT.

AS I INDICATED EARLIER, AT THIS TIME I'D LIKE TO INVITE JIM GRADY FROM A&M TO SHARE SOME ADDITIONAL INSIGHTS AROUND ORGANIZATIONAL AND FINANCIAL IMPROVEMENT STRATEGIES THAT WILL SHED HOPEFULLY SOME ADDITIONAL LIGHT ON THE ROAD AHEAD. JIM.

>> THANK YOU, SUPERINTENDENT [INAUDIBLE].

GOOD AFTERNOON TRUSTEES.

JUST TO FOLLOW UP ON THAT,

[00:55:01]

WHEN I LOOK AT SLIDES 50 AND 51, I'VE HAD SOME QUESTIONS OR I'VE HEARD SOME QUESTIONS ABOUT WHATEVER RANGE OF COST-SAVINGS, WHAT'S A RANGE OF REVENUES THAT CAN BE DONE ON THESE SLIDES.

REALLY YOU'RE VERY ANALYTICAL GROUP.

YOU WANT TO SEE THE DATA, I COMPLETELY APPRECIATE THAT THE FACT OF THE MATTER IS WE JUST DON'T HAVE THE DATA RIGHT NOW.

THESE IDEAS ARE THE ADMINISTRATION'S IDEAS.

BEFORE WE GET TO THESE IDEAS OR GET TO PROVIDING RANGES, THERE'S A LITTLE BIT OF WALKING THAT NEEDS TO HAPPEN FIRST.

WE NEED TO WALK BEFORE WE CAN RUN.

THE SUPERINTENDENT HAS IDENTIFIED THAT THERE ARE AREAS THAT WE NEED TO BOLSTER BEFORE WE CAN COME BACK AND DO THE FULL-SCALE ANALYSIS AND THE FULL-SCALE WORK THAT NEEDS TO BE DONE HERE.

FOR EXAMPLE, IF YOU GO BACK TO SLIDE 50, DEVELOPING AN ATTRACTIVE EDUCATIONAL MODELS TAILORED TO COMMUNITY NEEDS IN ORDER TO STABILIZE AND IMPROVE ENROLLMENT, WE NEED TO UNDERGO AN ASSESSMENT OF CURRENTLY WHAT'S OUT THERE.

WHAT SCHOOLS HAVE OUTCOMES THAT ARE WORKING, AND WHAT IS IT THEY'RE DOING RIGHT AND HOW CAN WE REPLICATE THAT ELSEWHERE? WE NEED TO DO THAT WORK BEFORE WE CAN COME BACK TO YOU AND SAY, HERE'S WHAT WE WANT TO DO.

HERE'S A RANGE IN TERMS OF DEVELOPING ATTRACTIVE EDUCATION MODELS.

WHEN I LOOK AT THIS SECOND ITEM HERE, THE USE OF REAL ESTATE, OPTIMIZING THE USE OF REAL ESTATE.

THERE'S AGAIN, SOME WORK THAT NEEDS TO BE DONE IN TERMS OF ANALYZING THAT.

WHERE ARE OUR SCHOOLS? WHAT IS THEIR CURRENT ENROLLMENT, WHAT IS THEIR CURRENT CAPACITY? WHAT IS THE CURRENT DEFERRED MAINTENANCE THAT IS COMING DOWN THE PIKE WITH RESPECT TO THESE SCHOOLS.

WHEN YOU HAVE ALL THOSE VARIABLES PUT TOGETHER, WHAT IS TRANSPORTATION ROUTES AND DEMOGRAPHIC CHANGES IN NEIGHBORHOODS AND AREAS OF THE CITY? WHAT IS THE WAY TO OPTIMIZE THIS IN A 3D CHESS BOARD? BUT BEFORE WE CAN GET THERE, WE NEED TO UNDERSTAND WHAT WE HAVE TODAY CURRENTLY.

IT'S GOING TO TAKE WORK.

JUST FLIPPING OVER TO THE SECOND SLIDE IT'S 51 YES.

WHEN I LOOK AT OPTIMIZING THE CENTRAL OFFICE SUPPORTS, AGAIN WE NEED TO DO A LITTLE BIT OF WALKING BEFORE WE CAN RUN, AND THE SUPERINTENDENT RECOGNIZES THAT, AND WE ARE WORKING WITH A BOTTOMS-UP BUILD FOR NEXT YEAR'S BUDGET BY DEPARTMENT, WHERE DEPARTMENTS ACTUALLY GO THROUGH AND FIGURE OUT HOW THEY CAN ALIGN THEIR DEPARTMENTS TO BETTER ALIGN WITH THE STRATEGIC GOALS.

THEY UNDERSTAND WHO THEIR CUSTOMERS ARE AND THIS ARE THESE SCHOOLS AND STUDENTS, AND HOW BEST THEY CAN SERVE THEIR CUSTOMERS, AND HOW THAT ORGANIZATION NEEDS TO BE REDEFINED RESTRUCTURED IN ORDER TO MEET THAT, TO OPTIMIZE OUTCOMES TO STUDENTS.

THAT WORK NEEDS TO BE DONE FIRST BEFORE WE CAN COME BACK TO YOU AND SAY, YEAH WE THINK WE'RE GOING TO HAVE A RANGE OF SUCH AND SUCH HERE.

THEN FINALLY JUST TRANSFORMING SCHOOLS ORGANIZATION.

THE SUPERINTENDENT UNDERSTANDS THERE'S A GAP IN TERMS OF WE JUST NEED TO UNDERSTAND HOW BETTER FINANCE IN THE SCHOOLS ORGANIZATIONS CAN INTEGRATE WITH EACH OTHER.

HOW FINANCE CAN BETTER ASSIST PRINCIPLES IN RUNNING THEIR SCHOOLS, IN PROVIDING THEM SUPPORTS THAT THEY NEED AND PROVIDING THEM EDUCATION, PROVIDING THEM COSTS, PROVIDING THEM HELP WITH THEIR BUDGETS.

THOSE ACTIVITIES, THE SUPERINTENDENT UNDERSTANDS NEEDS TO BE DONE BEFORE WE CAN COME BACK AND AND PROVIDE A FULL-SCALE RANGE OF OUTCOMES.

>> THANK YOU JIM. AT THIS TIME PRESIDENT CRUZ SO I'D LIKE TO YIELD OUR TIME BACK TO THE BOARD AND YOURSELF FOR ANY ADDITIONAL QUESTIONS.

>> THANK YOU. OKAY TRUSTEE'S SO WE'LL DO ACTUALLY 2461579 AND THEN I'LL GO LAST.

IF YOU DON'T HAVE ANY QUESTIONS, YOU CAN JUST SAY PASS.

IS ANYONE OPPOSED TO DOING THE QUESTIONING THAT WAY? [LAUGHTER] JUST TO CHANGE IT UP, AND SO I DON'T HAVE TO FIGURE OUT WHO'S IN ORDER, SINCE I DON'T HAVE MY HANDY LITTLE CUE.

>> [INAUDIBLE].

>> OKAY. TRUSTEE [INAUDIBLE].

TRUSTEE ALAN.

>> THANK YOU.

>> YOU'RE WELCOME.

>> HE'S GOT THE CLICKER.

>> [BACKGROUND]

>> YES. [BACKGROUND] CHIEF GRANT SKINNER, I'LL LET YOU SHARE, BUT YES.

>> YES. WE'RE UPDATING THE THRESHOLD FOR THAT TO ALIGN WITH THE NEW VERSION OF THE 29,120.

>> YES.

>> IT IS [BACKGROUND] YES, I CAN TELL IT OUT.

[01:00:08]

IT'S WHATEVER THE SALARY IS FOR.

I ACTUALLY DON'T KNOW, BUT SOMEONE WILL TELL ME AND I'LL GET BACK TO YOU.

>> [BACKGROUND] THE NEXT QUESTION IS [INAUDIBLE]

>> EVERYBODY IS NOT ABLE TO GO FROM A TEACHER SALARY TO A PRINCIPLE SALARY THAT'S GOING TO COST THEM $6,000.

THIS IS JUST A CONCERN TO MAKE SURE YOU LOOK AT THEM BECAUSE I KNOW THEY'RE GOING TO GET A LOT OF MONEY WITH THE ESSER FUNDS.

I'D BE CONCERNED ABOUT A TEACHER THAT WOULD NOT TAKE AN ADMINISTRATIVE JOB BECAUSE OF LOSS OF MONEY.

>> DR. ELLEN, WE'VE TALKED ABOUT SOME SIMILAR SITUATIONS THAT WE'VE HEARD OVER THE COURSE OF THE LAST FEW MONTHS, BUT CHIEF GRANT SKINNER OR YOU WANT TO SHARE SOME INSIGHTS AROUND WHAT WE'VE LOOKED AT AND HOW WE'RE TRYING OUR BEST TO PREVENT THAT FROM HAPPENING.

>> SURE, THE BIGGEST THING THAT I WOULD HIGHLIGHT IS WITH MAKING THE INCREASES THAT WE'RE MAKING TO NOT ONLY PRINCIPLE SALARIES, BUT ALSO ASSISTANT PRINCIPAL INDIAN SALARIES, THAT WE SHOULD BE MINIMIZING HOW OFTEN THAT HAPPENS BECAUSE WE ARE APPROPRIATELY RAISING THE OTHERS.

OTHER THAN ELEMENTARY PRINCIPALS, AS YOU PROBABLY KNOW, OTHER PRINCIPALS HAVE RECEIVED ONLY ONE RACE SINCE 2016.

AGAIN, THIS IS A CASE WHERE WHEN WE'RE INCONSISTENT WITH WHAT WE RAISED, WE CREATE THESE INEQUITIES ACROSS DIFFERENT JOB CATEGORIES WHERE WE'RE TRYING TO TAKE A COMPREHENSIVE APPROACH THAT SAYS, IF WE BELIEVE AS A VALUE THAT GENERALLY A PRINCIPAL SHOULD MAKE MORE THAN A TEACHER, LET'S MAKE SURE OUR COMPENSATION PLAN ALIGNS WITH THAT.

>> PRINCIPLES SPECIFICALLY, WE PROBABLY SAW SOME OF THE BIGGEST INEQUITIES.

SOME NOT AS SURPRISED TO HEAR SADDENED ME, BUT I'M NOT AS SURPRISED TO HEAR ABOUT YOUR SCENARIO BECAUSE OUR ELEMENTARY PRINCIPALS DID LAG BEHIND QUITE A BIT.

>> THE ONLY OTHER THING I WOULD SAY IS, I DO NOT BELIEVE THAT WE WILL BE IN A POSITION TO SAY THAT NEVER WILL THERE BE A TEACHER WHO WILL HAVE TO CONSIDER LIKE WHAT I PREFER TO BE AN ADMINISTRATOR OVER A TEACHER, AND THAT IS BECAUSE WE'VE PUT IN PLACE SOME REALLY GOOD INCENTIVES FOR TEACHERS TO SERVE ALSO IN TEACHER LEADER ROLES.

SO SOMEONE CAN BE MID-CAREER TEACHER WHO'S WORKING IN OUR RISE CAMPUS, WHO ALSO IS SERVING AS A MULTI-CLASS ROOM LEADER WHO'S GOING TO EASILY MAKE A $100,000, RIGHT? THEY MAY BE IN A POSITION WHERE THEY HAVE TO SAY, WELL, ACTUALLY, I APPRECIATE THIS LEADERSHIP ROLE MORE THAN BEING AN ASSISTANT PRINCIPAL WHERE MY SALARY MIGHT NOT BE AS HIGH.

>> TRUSTEE BAKER.

>> FROM PAGES 25 AND 26 SLASH 25 TO 26.

FROM THAT MASTER PAGE TABLE, I SAW AN INCREASE, IF SO, WHERE DO YOU HAVE THE INCREASE OF A HIST POLICE? [NOISE] CHIEF GRANT SKINNER?

>> SURE. THE ONE SCALE THAT WE DID NOT PUT IN THE PRESENTATION IS THE POLICE SCALE.

THE POLICE HAVE THEIR OWN SCALE AND THE INCREASE FOR POLICE FOR EACH OF THE NEXT THREE YEARS WILL BE THAT THEY EARN A STEP INCREASE AND SOMEONE'S TEXTED ME, YOU WILL PROBABLY GOING TO TELL ME WHAT THAT AMOUNT IS.

BUT THE EVERY POLICE OFFICER WILL RECEIVE AN INCREASE EACH YEAR FOR THE NEXT THREE YEARS UNDER OUR PLAN.

>> FROM SLOT 39, GLENN, YOU MENTIONED THAT THERE WILL BE A TAX RATE DECREASE.

DO YOU KNOW WHAT A TAX RATE DECREASES IS? PRECISELY AT THIS TIME? CHIEF REED.

>> I HAVE THE EXACT AMOUNT, BUT IT'S ACTUALLY IN THE A2 BOARD AGENDA ITEM.

SO IT'S CLOSED TO $0.03, BUT YEAH, IT'S AN ADD-ON.

>> SUPERINTENDENT, YOU MENTIONED THAT THERE WAS A $2 BILLION DEFERRED MAIN FACILITIES COSTS

[01:05:03]

AND SO YOU SAID ALL OF THIS IS GOING TO DEPEND ON WHAT A FUTURE BOND LOOKS LIKE.

MY QUESTION IS, DOES IT MAKE HAVING TO APPROVE A BOND EMINENT?

>> A BOND IS GOING TO BE EXTREMELY IMPORTANT FOR THIS DISTRICT.

I THINK ONE THING THAT WE HAVE TO REMEMBER, IT'S AT NUMBER ONE. IT'S BEEN TEN YEARS.

A DISTRICT THIS SIZE WILL TYPICALLY NEED TO DO A BOND ISSUE ABOUT EVERY FIVE YEARS.

SOME DO IT EVEN MORE RECIPROCAL, THREE TO FIVE YEARS, EVEN BEYOND THAT, AFTER PASSING A BOND AND HOPEFULLY IN 2023, WE'LL NEED TO REALLY LOOK FORWARD ANOTHER 3 TO 5 YEARS TO WHAT IT LOOKS LIKE.

WE'RE DEFINITELY STARTING BEHIND THE CURVE BECAUSE OF THE DEFERRED MAINTENANCE AND THE LENGTH OF TIME THAT WE'VE GONE SINCE THE LAST BOND, THE CUTS THAT WE'VE MADE THE OPERATIONS OVER THE COURSE OF TIME THAT ALL COMPOUNDS TO THE DEFERRED MAINTENANCE ISSUES THAT WE'RE SEEING RIGHT NOW.

>> FINAL QUESTION FOR NOW WITH REGARDS TO THE SALARIES AND ALL OF THE COMPENSATION PLAN AS A WHOLE BEING PAID FOR BY SR FUNDS, COULD YOU, I KNOW YOU SAID THIS SOME WEEKS AGO, BUT COULD YOU REMIND US WHAT IS OUR PLAN OUTSIDE OF THE BOND? WHAT IS OUR PLAN TO CONTINUE THAT BEYOND THE 3 YEARS IN TERMS OVER?

>> IT'S WHAT WE'VE SHARED IN PREVIOUS.

WE WERE CHATTING WITH JIM JUST SHARED IT, WE'RE GOING TO HAVE TO TAKE A CLOSE LOOK, WHICH IS WHAT WE PLAN ON DOING AND STUDYING.

WE'RE GOING TO GET OUR BEST BANG FOR OUR BUCK.

ISN'T GOING TO BE SCHOOL CONSOLIDATIONS.

WE'RE GOING TO HAVE TO LOOK AT A MULTITUDE OF DIFFERENT THINGS AND WE'RE GOING TO BE WORKING CLOSELY WITH SOME OUTSIDE SUPPORT TO DO JUST THAT BECAUSE WE DON'T WANT TO TAKE A BLIND STEP AT WHAT WE THINK MAY GET US THERE.

WE'RE GOING TO HAVE TO TAKE A VERY STRATEGIC FOCUS, LOOK AT WHAT WE'RE DOING, AND I ACTUALLY HAVE MY SPECIAL ASSISTANT, AUGUST HAMILTON, WORKING ON SOME POSSIBILITIES OF THE WHO.

BECAUSE WE'D LIKE TO HAVE A PROJECT MANAGEMENT ORGANIZATION, WHETHER THAT BE A&M, WHETHER IT'D BE SOMEONE ELSE TO HELP WITH THE PROCESS. SURE.

>> NOW WE'LL GO TO ODD TRUSTEE SANTOS.

>> THANK YOU, PRESIDENT COOS, A SUPERINTENDENT HOUSE FOR YOUR PRESENTATION, I'M VERY EXCITED THAT WE AS A TEAM ARE MOVING FORWARD IN THIS DIRECTION.

IT'S BEEN A LONG TIME COMING THAT WE HONOR OUR TEACHERS LIKE THE PROFESSIONALS, THAT THEY ARE AND INCLUDED IN OUR SUPPORT STAFF WHO WERE THERE FOR OUR TEACHERS NOT STUDENTS LIKE NOBODY ELSE.

I SHOULDN'T SAY VERY MUCH, SO THANK YOU.

MY QUESTION, GLENN, SUPERINTENDENT HOUSE, I'M SORRY, WHAT WOULD THE DOLLAR AMOUNT BE IF WE DIDN'T INCLUDE AN INSURANCE PREMIUM COST FOR ANY EMPLOYEE?

>> OKAY, CHIEF REED.

>> I'M ACTUALLY GOING TO PASS THAT TO CHIEF [INAUDIBLE]

>> WE CAN GET THE EXACT NUMBER BUT WHAT I WOULD SAY IS THE COST ITSELF IS NOT SIGNIFICANT IN THE CONTEXT OF A LARGE BUDGET THAT THE DISTRICT HAS.

WHAT WE ARE TRYING TO PREVENT IS A NEED FOR MORE DRAMATIC ONE TIME INCREASES IN THE FUTURE.

WE KNOW THAT AGAIN, OUR HEALTH CARE COSTS ARE GOING UP, AND WE DON'T WANT TO TURN WHAT OTHERWISE MIGHT BE A NEED FOR A 10 PERCENT INCREASE IN AN EMPLOYEE PREMIUM IN 2024 INTO 15 PERCENT BECAUSE WE DID NOTHING IN 2023.

AGAIN, THE PURPOSE OF HAVING AN INCREASE TO THE PREMIUMS FOR DEPENDENCE IN OUR HEALTH CARE PLANS NEXT YEAR IS NOT BECAUSE IT'S GETTING US A LOT OF MONEY, I THINK IT'S LESS THAN A MILLION DOLLARS.

BUT WE'RE TRYING TO BE THOUGHTFUL ABOUT HOW TO SCALE UP THOSE PREMIUMS IN A GRADUAL WAY RATHER THAN A LARGER ONETIME INCREASE THAT WE OTHERWISE KNOW WE WOULD HAVE TO GET TO.

I GUESS MY QUESTION IS BECAUSE THIS IS A VERY POSITIVE DIRECTION THAT HISD IS HEADING IN, I DON'T WANT ANY EMPLOYEE TO THINK THAT WE'RE USING THEIR EARNINGS AS A WAY TO FUND THIS IS.

I JUST WANT IT TO BE COMPLETELY POSITIVE, THIS IS A VERY POSITIVE DIRECTION.

IF THAT GRADUAL CHANGE CAN BE IMPLEMENTED NEXT YEAR, THAT UNSPOKEN COMMUNICATION TO OUR TEACHERS AND OUR SUPPORT STAFF, AND THAT WAS AN EXCELLENT QUESTION, DR. ALAN.

[01:10:01]

SUPERINTENDENT HOUSE FUTURE LEGISLATION, IS THERE TALK OF INCREASING FUNDS FOR PUBLIC EDUCATION, SPECIFICALLY IN COUNSELING SAFETY MEASURES AND COULD THE NEW CONSTITUTIONAL AMENDMENT NEGATIVELY AFFECT HISD FUNDING IN THE FUTURE? I DEFINITELY BELIEVE THERE'S GOING TO BE MORE CONVERSATION AROUND SAFETY WITH WHAT'S HAPPENED MOST RECENTLY IN OUR NEIGHBORS TO THE WEST, I THINK HAS HEIGHTENED THE IDEA OF SCHOOL SAFETY, SO I EXPECT FOR THERE TO BE MAJOR CONVERSATION, BUT IT'S STILL EARLY TO MAKE PREDICTIONS.

BUT WHAT WE DO KNOW IS THAT THERE ARE MANY DISTRICTS ACROSS, NOT ONLY THE STATE, BUT THE COUNTRY THAT ARE DEALING WITH THE SAME ISSUE.

I HAVE CONVERSATIONS WITH SUPERINTENDENTS, TWO OR THREE COMMISSIONERS IN DIFFERENT STATES AS WELL AROUND THOSE TRENDS AND THOSE TRENDS LOOK LIKE THE ESTER CLIFF.

IT LOOKS LIKE STUDENTS THAT HAVE BEEN LOST TO ENROLLMENT AND THAT'S NOT JUST PUBLIC SCHOOLS, THAT'S PRIVATE, THAT'S CHARTER ACROSS THE BOARD.

BUT I DO BELIEVE THE LEGISLATURE HAS TO RECOGNIZE IT.

BUT IT'S UP TO US, ESPECIALLY AS THE LARGEST SCHOOL DISTRICT IN THE STATE TO BE AT THE CAPITOL, TO LIFT THAT VOICE UP AND MAKE SURE THAT THEY UNDERSTAND THE ISSUES THAT ARE OUT THERE.

I KNOW THAT AT THE LAST BUDGET PRESENTATION, YOU ALL TALKED ABOUT DECREASING FUNDING FOR LOBBYING AT THE STATE.

THAT CONCERNED ME, SPECIFICALLY BECAUSE IT'S CONSTITUTIONAL AMENDMENT.

IT'S MY UNDERSTANDING IT COULD NEGATIVELY IMPACT PUBLIC EDUCATION AND THE FUNDING TO OUR SCHOOLS.

I WAS VERY CONCERNED THAT WE DIDN'T HAVE MORE OF A PRESENCE OUT THERE WITH THOSE CONSTITUTIONAL AMENDMENTS.

MY NEXT QUESTION WOULD BE, DOES THE $2 BILLION DEFERRED MAINTENANCE INCLUDE CAMERA UPDATES OR IS THAT INCLUDE THE CAMERAS THAT NEEDS TO BE UPDATED? IT'S A LITTLE BIT OF EVERYTHING, I DON'T HAVE THE LIST OF SPECIFIC ITEMS, BUT WE BE GLAD TO PROVIDE SOME CATEGORICAL INSIGHT BEYOND THIS MEETING.

IN THE NEW BUDGET, ARE THERE ANY PLANS TO UPDATE CAMERAS ON CAMPUSES? [NOISE] OF COURSE, AS WE TALK ABOUT OPERATIONAL EXPENSES LIKE CAMERAS, THAT WOULD BE SOMETHING THAT IN MY EYES, AS WE GO THROUGH THE PROCESS OF A BOND ISSUE THAT WOULD REALLY HAVE TO BE INFUSED, DETERMINING EXACTLY WHAT THE FOOTPRINT IS FOR AN ELEMENTARY SCHOOL.

I'VE DONE THIS AS A CEO AND MRS. PAUL WOULD BE ABLE TO TELL YOU WHAT THE FOOTPRINT WOULD BE FOR MIDDLE SCHOOL, AND THEN WHAT A HIGH SCHOOL WOULD LOOK LIKE AND THEN MAKING SURE THAT WE EXECUTE THAT CONSISTENTLY.

ONE OF THE THINGS THAT WERE QUITE FRANKLY MISSING IS A COMMAND CENTER OR WHAT NOT, WHICH I THINK IS SOMETHING THAT YOU'RE SEEING WHERE ALL SCHOOLS CAN BE SEEN IN ONE ROOM TO ENSURE THAT WE HAVE THE SAFETY MEASURES THAT IT'S MANNED BY A MEMBER OF OUR POLICE FORCE OR SOME ASSISTANT IN DOING SO.

JUST TO HIGHLIGHT, IN THE LAST TWO LEGISLATIVE SESSION THE HOUSE IS PRESENTED THESE NEW BITS OF LEGISLATION THAT HAVE BEEN UNFUNDED MANDATES.

LIKE WE'VE HAD TO CHANGE.

THE LEGISLATIVE THING, YOU NEED TO ANSWER THAT. THANK YOU.

YOU'RE RIGHT. THOSE ARE THINGS THAT WE HOPE THAT THEY DON'T COME DOWN THE PIPE.

IT'S ACTUALLY A CONVERSATION THAT MS. PAUL AND I HAD THIS MORNING AND YESTERDAY, AROUND SCHOOL SECURITY AND SAFETY.

YOU'VE SEEN SOME STATES AFTER A MAJOR INCIDENT SAY THAT SCHOOL DISTRICTS NEED TO DO X, Y, AND Z, AND NO FUNDS COME WITH IT.

WE DEFINITELY HOPE THAT'S NOT THE CASE, ESPECIALLY BEING THAT WE'RE IN THE ENVIRONMENT OF COVID AND KNOWING THAT THE LOSS OF STUDENTS HAS BEEN ON THE TABLE WOULD BE A VERY DIFFICULT ENVIRONMENT TO BE IN IF THERE WERE MAJOR MANDATES THAT HAD MAJOR FUNDING IMPLICATIONS AS WELL.

THANK YOU SUPERINTENDENT HOUSE TRUSTEE HERNANDEZ.

[NOISE] [INAUDIBLE] YEAH, WE ALREADY DID THE EVENS, WE'RE ON ODDS. SHE'S ONE.

YEAH, BAKER WAS SIX, AND THEN I'M EIGHT, BUT I'LL GO LAST.

[LAUGHTER] I KNOW IT'S CONFUSING TO DO IT WITHOUT ORDER [INAUDIBLE].

I WANT TO THANK YOU FOR UPDATING THE TEACHER COMPENSATION SALARY SCHEDULE.

I KNOW THAT I WAS CONCERNED ABOUT IT SINCE FEBRUARY WHEN IT WAS PRESENTED BECAUSE IT DID NOT SEEM COMPETITIVE.

THIS I AGREE IS A LOT MORE COMPETITIVE THAN THE ORIGINAL PLAN.

THAT'S NOT MY PAGE 34.

[INAUDIBLE]

[01:15:02]

MAYBE IT'S A DIFFERENT PAGE.

BUT I SEE THAT THIS PLAN WAS GUIDED BY THE STRATEGIC PLAN.

I WOULD LIKE TO SEE HOW THIS IS GUIDED BY OUR GOALS, BY THE BOARD GOALS BECAUSE WE ARE USING A GOVERNANCE MODEL, IT SAYS THAT OUR BUDGET SHOULD ALIGN TO OUR GOALS.

I WOULD LOVE TO SEE THAT, I DON'T KNOW WHEN OUR NEXT BUDGET MEETING IS, BUT I WOULD LIKE TO SEE THE ALIGNMENT BETWEEN THE BUDGET.

I FEEL THERE'S A BIG PORTION OF THIS BUDGET MISSING SO THAT I COULD SEE THE WHOLE PICTURE.

WE'D BE GLAD TO OFFER A CROSSWALK INTO WHAT THAT LOOKS LIKE IT IS SOMETHING THAT HAS BEEN ON THE FOREFRONT OF OUR THINKING AND OUR PLANNING AS WELL.

I'M GLAD TO HEAR THAT. I WOULD LOVE TO SEE IT.

WE CAN OFFER SOME CROSS-WALK TO SHARE WHAT THAT LOOKS LIKE.

AWESOME. THEN I DID SEE ON PAGE 6 THAT HAD SAID, CURRENTLY A 5TH YEAR TEACHER, ONLY HAS ONE PERCENT, A 10TH YEAR TEACHER MAKES SIX PERCENT MORE THAN A FIRST-YEAR TEACHER.

DO WE HAVE THE UPDATED NUMBERS ON WHAT A 5TH YEAR TEACHER AND A 10TH YEAR TEACHER WOULD MAKE MORE THAN THE FIRST-YEAR TEACHER? I DON'T KNOW THAT WE HAVE THAT IN FRONT OF US AT THIS TIME, UNLESS CHIEF GRANT SKINNER HAS SOME NIFTY NOTES IN FRONT OF HIM THAT MIGHT BE ABLE TO PROVIDE US SOME INSIGHT.

YEAH, I WILL SAY IT'S A FEW PERCENT INSTEAD OF ONE PERCENT.

WE'VE INCREASED SOME OF THOSE EARLY SEPARATE INCREASES FROM $150, WHAT THEY WERE, FOR EXAMPLE, FROM STEP ZERO, STEP ONE IS A $1000 INCREASE.

NO ONE ELSE IS SAYING WHEN YOU FINISH A YEAR WITH OUR DISTRICT, WE'RE GOING TO REWARD YOU BY INCREASING YOUR SALARY BY $1,000.

THAT'S SIGNIFICANT AND THAT'S A VALUE STATEMENT THAT WE WANTED TO MAKE THROUGH OUR SALARY SCHEDULE, AND THERE'S PHYSICAL LIMITATIONS ON HOW MUCH WE COULD EXPAND THAT ALL AT ONCE.

THAT ONE PERCENT FROM STEP ZERO TO A 5TH YEAR TEACHER IS NOW THREE PERCENT, SO WE'RE STARTING TO DIFFERENTIATE A LITTLE MORE.

THEN ON PAGE 14 THAT SAYS GRANT A STEP INCREASE.

CAN YOU EXPLAIN MORE ABOUT WHAT THAT MEANS, LIKE THE WORD GRANT BECAUSE FROM MY UNDERSTANDING, IT'S JUST ONE MORE YEAR OF EXPERIENCE.

YES. IT'S ONE MORE YEAR OF EXPERIENCE, AND THE REFERENCE THERE IS BECAUSE THERE HAVE BEEN YEARS IN THE PAST 2016-2017 IS ONE OF THOSE EXAMPLES, WHERE THE BOARD DID NOT FUND A STEP INCREASE.

ALTHOUGH TEACHERS HAVE RECEIVED A STEP INCREASE FOR FIVE YEARS IN A ROW, AND IN THREE OF THOSE YEARS THEY ALSO GOT A COST OF LIVING ADJUSTMENT, IN 2016 THERE WAS NOT A STEP INCREASE.

THEN FROM PAGE 18, I KNOW THAT THERE'S A PLAN FOR THE NEXT COUPLE OF YEARS, BUT I ASK THIS QUESTION AT THE FIRST FEBRUARY MEETING.

THIS PLAN IS ABLE TO BE ADJUSTED.

CORRECT? FOR THE NEXT FEW YEARS IF IT NEEDED TO BE ADJUSTED IT WOULD BE ABLE ADJUSTED.

[NOISE] [INAUDIBLE] [LAUGHTER].

CHIEF GRANT SKINNER.

SURE. I WOULD SAY, AS WE SAID AT THAT TIME, THE ANSWER IS IT COULD BE, AND SITTING HERE TODAY WHAT I'D SAY IS THE ADMINISTRATION'S PLAN IS TO USE SR FUNDS TO ACCELERATE YEAR TWO, BUT NOT TO IMPLEMENT SOMETHING MORE IN YEAR TWO.

BECAUSE THEN WE'RE TALKING ABOUT INCREASING THE BOTTOM LINE TO THE GENERAL FUND.

WE SHARED IN AN EARLIER SLIDE THERE ALREADY, BY 2024-2025, THIS ADDS $208 MILLION TO OUR ANNUAL COSTS.

WE BELIEVE THIS PUTS US IN A PLACE WHERE WE WILL BECOME AND CONTINUE TO BE VERY COMPETITIVE WITHOUT CHANGING SOMETHING MORE IN TERMS OF THE TOTAL COST OF OUR COMPENSATION PLAN OVER THESE THREE YEARS.

I THINK THAT SLIDE THAT YOU ASKED FOR IT BEFORE THAT SHOWS THAT WE'VE SHARED BEFORE IN TERMS OF A TIMELINE, YES NEXT YEAR WE WILL CONTINUE ASSESSING WHERE WE ARE.

MOSTLY WILL BE SAYING, WHAT MIGHT WE HAVE TO DO IN 2025, BUT IF IT TURNS OUT THAT WE'RE LOSING OUR COMPETITIVE EDGE, WE COULD COME BACK AND MAKE ANOTHER PROPOSAL.

THANK YOU. [NOISE] TRUSTEE DIEGO.

THANK YOU. VERY QUICK QUESTION, WHAT PERCENTAGE OF OUR BUDGET IS SALARIES? CHIEF REED?

>> BELIEVE IT'S RIGHT.

AT 64 PERCENT I BELIEVE THAT'S WITHOUT RECAPTURE AND IT'S CLOSE TO 72 PERCENT.

[01:20:04]

RIGHT NOW IF YOU LOOK AT THE BUDGET ABOUT 64 PERCENT IS SALARIES AND BENEFITS FOR THE DISTRICT.

>> OKAY.

>> BUT IN THAT OF COURSE IS OUR RECAPTURE PAYMENT.

>> THINGS WE ACTUALLY GET TO DECIDE OF DOLLARS WE HAVE THAT WE GET TO DECIDE HOW THEY ARE SPENT.

>> SEVENTY TWO.

>> SEVENTY TWO PERCENT, IS OKAY.

THE TWO BIG BUCKETS THAT THIS TRUSTEE NEEDS TO UNDERSTAND BEFORE APPROVING A BUDGET, OR ALIGNMENT TO OUR GOALS WITHIN OUR CONSTRAINTS AND LONG-TERM FINANCIAL SUSTAINABILITY.

I APPRECIATE PAGES 49-51.

I'M GOING TO START WITH ALIGNMENT TO GOALS, AND I'M GOING TO STATE AN OPINION AND I'M GOING TO ASK IF YOU HELP ME UNDERSTAND WHERE MY OPINION IS, OR IS NOT ACCURATE.

IN ORDER FOR US TO ALIGN OUR BUDGET TO OUR GOALS, WE HAVE TO HAVE DONE SOME COST BENEFIT ANALYSIS BECAUSE YOU'RE NEW SUPERINTENDENT YOU HAVE INHERITED A SYSTEM.

A COST BENEFIT ANALYSIS OF THE DOLLARS ARE CURRENTLY SPENDING BOTH CENTRALLY AND AT THE CAMPUS LEVEL. CORRECT?

>> CORRECT.

>> HAS THAT BEEN DONE YET? IF IT HAS, WHAT DID IT TELL YOU? IF IT HASN'T, ARE YOU GOING TO DO IT? IF YOU ARE GOING TO DO IT, WHAT IS GOING TO BE THE PLANNING PROCESS FOR THAT?

>> THAT'S PART OF THE WORK THAT WE'VE DONE WITH A&M AS WELL, AND JIM IF YOU'D LIKE TO SHARE SOME SPECIFIC INSIGHTS AROUND, NOT ONLY THE FINDINGS IN REFERENCE TO WHERE WE LANDED, BUT ANY OTHER ITEMS AROUND WHAT THAT PROCESS LOOK LIKE AS WELL.

>> YEAH. I THINK THE KEY IS WE DID AN ASSESSMENT BACK LAST FALL, AND WE LOOKED AT SOME OF THE GAPS IN TERMS OF THE BUDGETING PROCESS AND THE WAY THE DISTRICT GOES ABOUT, BUILDING OUT ITS CAPACITY WITH RESPECT TO ITS ANALYTICS.

FRANKLY, SOME OF THAT MUSCLE MEMORY NEEDS TO BE BUILT.

THE SUPERINTENDENT IS COMING HERE WITH A NEW TEAM, THEY'VE GOT THEIR WAYS OF ANALYZING THINGS AND LOOKING AT THINGS AND DOING COST BENEFIT ANALYSIS, AND RIGHT NOW THE FOCUS FOR THE SUPERINTENDENT AND HIS TEAM IS TO START IMPLEMENTING SOME OF THAT, START DRIVING SOME OF THAT RIGOR, START DRIVING SOME OF THAT MUSCLE MEMORY IN A WAY THAT COST BENEFIT AND ANALYTICS ARE DONE.

THEY'VE STARTED NEW THIS YEAR.

WE'VE HAD COVID, WE'VE HAD A LOT OF THINGS GOING ON.

I THINK WE'RE AT A POINT NOW WHERE HE'S BEEN HERE A YEAR, HIS TEAM BEEN HERE A YEAR, I'M SEEING THINGS START TO SETTLE IN, AND THOSE ANALYTICS I THINK ARE COMING.

>> IT SOUNDS LIKE ON PAGE 50, THAT FIRST BULLET YOU SPOKE TO THAT.

THERE'S GOING TO BE A DEEP DIVE ON WHAT SCHOOLS ARE CURRENTLY DOING.

>> CORRECT.

>> WHAT TO ACHIEVING RESULTS TOWARDS OUR GOALS?

>> YEAH.

>> BEFORE YOU'RE MAKING ANY CHANGES AND IDENTIFY WHAT PRACTICES MIGHT NEED TO BE SCALED IN WHICH MAYBE NEED TO BE IMPROVED.

>> IN SOME OF THAT WILL HAPPEN ALONG THE WAY AS WELL.

>> OKAY.

>> IT'S MONITORING, YOU HAVE BEEN MENTIONED EARLIER ABOUT THE IDEA OF VENDOR FOCUS IN MAKING SURE THAT WE UTILIZE, AND RECOGNIZE, AND HOLD ACCOUNTABLE THE VENDORS THAT ARE HAVING THE KIND OF RESULTS WITH SCHOOLS THAT ARE POSITIVE, RESULTS THAT ARE GOOD FOR KIDS SO, NOT ONLY WILL WE BE ANALYZING ON THE FRONT END AND BACK END, BUT WE'LL BE ANALYZING AND MAKING ADJUSTMENTS ALONG THE WAY AS WELL.

>> THE SHORTER ANSWER IS, YOU DON'T ACTUALLY HAVE THE INFORMATION YOU NEED YET TO COMPLETELY BUILD A BUDGET ALIGNED TO OUR GOALS AND OUR CONSTRAINTS.

IN A WAY THAT I THINK WE'VE BEEN ASKING FOR.

>> HELP ME UNDERSTAND.

>> THAT IT'S GOING TO TAKE TIME, BUT-

>> YES.

>> YES, THAT IS CORRECT.

I MEAN I CAN SEE THAT MORE CLEARLY THAN I CAN GET SEVERAL MINUTES.

>> OKAY.

>> OKAY [NOISE]

>> YOU'RE ABSOLUTELY CORRECT.

>> [BACKGROUND]CONTINUE ONE MORE TOO.

>> THANK YOU.

>> TRUSTEE GETRI.

I'M SORRY TRUSTEE WADE.

>> I WANT TO THANK A&M FOR YOUR COMMITMENT TO THIS PROJECT, AND YOUR TRANSPARENCY IN TODAY'S PRESENTATION.

I ALSO WANT TO SAY THAT WE NEED TO MAKE SURE THAT WHILE I AM SUPPORTING THIS TEACHER INCENTIVE, THIS EMPLOYEE INCENTIVE PACKAGE IS NEW, THIS NEW PACKAGE, AND THERE ARE MORE THINGS TO COMPETITIVE EDGE THAN JUST MONEY.

I THINK THAT IS SOMETHING THAT WE NEED TO FACTOR IN, AND THAT IS THE CULTURE, AND THE TRUST, AND THE SUPPORT THAT THEY'RE GETTING FROM ADMINISTRATION.

AS TODAY SPEAKER'S CAME AND KNOWLEDGE IS CRITICALLY IMPORTANT THAT WE ALIGN OUR GOALS TO OUTCOMES THAT WE'VE SEEN,

[01:25:03]

THEY ARE PRESENT IN OUR DISTRICT ALREADY.

WE HAVE GREAT AREAS OF OUTCOMES THAT WE NEED TO BE LOOKING TO AS WELL.

ON THAT NOTE, SO AGAIN, IT'S CULTURE.

I ALSO WANT TO MAKE SURE THAT WITH THAT CULTURE COMES THE IDEA THAT IN THREE YEARS WE'RE NOT ALREADY BEHIND PAY SCALE, AND WE'RE HAVING TO REDO THIS AGAIN.

WE CAN'T AFFORD IT.

WHAT WE NEED TO DO IS WE NEED TO MAKE SURE THAT THE CULTURE IS RIGHT, SO THAT WE'RE NOT HAVING TO READDRESS THIS PAY SITUATION EVERY LIKE THIS AGAIN.

I APPRECIATE YOUR ANALYSIS ON THIS. REAL QUICK.

LET'S TALK ABOUT HOUSTON STATE OF HEALTH TALKS ABOUT CLASS SIZE RATIO.

I'M VERY CONCERNED ABOUT IF WE'RE GOING TO BE DOING THESE PAY FORWARD, THESE BENEFITS FOR THE STAFF AND TEACHERS AGAIN, CRITICAL TO DO.

WE NEED TO MAKE SURE THAT WE'RE BRIDGING THE GAP IN OUR ACADEMICS THROUGH A BETTER CLASS SIZE RATIO THAT WILL HELP TEACHERS [NOISE] AND STUDENTS. THANK YOU.

>> THANK YOU.

>> TRUSTEE GETRI.

>> THANK YOU SO MUCH. SUPERINTENDENT HOUSES THERE.

IS THERE ANY WAY WE CAN RECEIVE A COPY OF THAT POLICE INCREASED TABLE, JUST LIKE WE HAVE ALL OF THE OTHER TABLES?

>> WE'D BE GLAD TO PROVIDE THAT.

>> EXCELLENT. THE OTHER THING THAT I AM CONCERNED ABOUT IS SAFETY.

BECAUSE IT IS OUR DISTRICT NUMBER ONE CONCERN.

I KEEP HEARING THAT SOMETHING IS GOING TO BE DONE AND A BOND IS NECESSARY, BUT I'M NOT SEEING ANYTHING BUILT-IN.

I NEED TO SEE SOME CHANGES.

I DON'T KNOW WHAT IT IS, MAYBE YOU CAN GET WITH YOUR DEPARTMENT, AND BRING US SOMETHING THAT I NEED TO SEE SOME PHYSICAL CHANGES ON THESE CAMPUSES, TO MAKE OUR CHILDREN AND OUR TEACHERS, AND ADMINISTRATORS FEEL SAFE.

>> YOU KNOW WHAT I WILL SAY IS THAT, WE ARE NOT NECESSARILY INCREASING SPECIFIC MANPOWER, BUT WE HAVE REACHED OUT TO THE FBI AND THESE ARE COMMENTS THAT ASSISTANT CHIEF ROGERS SHARED YESTERDAY IN REFERENCE TO SOME OF THE PRACTICES AROUND SECURITY AND SAFETY THAT WE'RE FOCUSING ON, NOT ONLY AT THE FBI BUT LOCAL LAW ENFORCEMENT PARTNERS IN THERE.

CURRENTLY, THERE ARE NO THREATS ON CAMPUSES.

AS WE SPEAK OUTSIDE THERE WAS ONE THAT I SENT OUT EARLIER TODAY, BUT HIC OFFICERS HAVE REALLY MOVED FORWARD WITH QUITE A BIT OF TRAINING, ACTIVE SHOOTER EVENTS, SCENARIOS THAT ARE BASED ON REAL SITUATIONS, THAT TRAINING IS HAPPENING LITERALLY ON AN ANNUAL BASIS AS WE SPEAK AND WE'RE BUILDING EVEN MORE RESPONSE TO AN ACTIVE SHOOTER INCIDENT REQUIRES COORDINATED RESPONSE BY LAW ENFORCEMENT, EMS DISPATCH, ALL OF THESE INDIVIDUALS ARE WORKING TOGETHER TO ENSURE THAT, IN THE EVENT OF A MAJOR EVENT, WE ARE PREPARED.

IT'S NOT JUST THE INFRASTRUCTURE AND OPERATIONAL PIECES THAT GO ALONG WITH IT, IT'S THE TRAINING.

WE ARE FOCUSED OUR EFFORTS ON A LOT OF THAT TRAINING THROUGH OUR POLICE DEPARTMENT RIGHT NOW.

>> THANK YOU SIR. I DO LIKE THE IDEA OF THAT COMMAND CENTER, SO IF WE CAN LOOK INTO THAT AND GIVE US SOME FEEDBACK ON THAT I'D REALLY APPRECIATE IT.

THEN ON PAGE 22, I'M JUST WONDERING, IS THERE A REASON FOR THE STAY BETWEEN YEARS 22 AND 23, AND I'M OKAY WITH IT.

I WAS JUST WONDERING. I HOPE [LAUGHTER] THAT IT PROVIDES SOME FINANCIAL BENEFIT TO THE DISTRICT.

IF YOU CAN TELL US BECAUSE YOU CAN SEE, ESPECIALLY A STEP 0615 AND IT REMAINS 615, THROUGH 2023 AND THEN ONLY MOVE AGAIN, AND IT'S A BIG JUMP IN 2024, 2025.

THAT'S WHY I'M WONDERING, IS THERE FINANCIAL BENEFIT TO THAT?

>> CHIEF GRANTS GET OR YOU WANT TO SHARE SOME INSIGHT HERE.

>> JUST TO CLARIFY, YOU'RE POINTING OUT THE DIFFERENCE BETWEEN THE COLUMN FOR 2023-2024 TO THE COLUMN FOR 2024-2025.

IS THAT [BACKGROUND]?

>> YES.

>> THIS IS REALLY A RESULT OF THE ADVANCING THEIR ORIGINAL YEAR 2 PLAN INTO YEAR 1, SO THE ORIGINAL PLAN

[01:30:04]

HAD A MORE GRADUAL INCREASE UP TO THE 64 THOUSAND FOR EXAMPLE.

OUR ORIGINAL PLAN WHEN FIRST STEP 0, WAS TO GO 59,000 TO 61,500 TO 64.

THE REASON THAT YOU SEE FLAT AND THEN ANOTHER JUMP IS BECAUSE WE ARE USING SR FUNDS TO ADVANCE YEAR 2 INTO YEAR 1, WE'RE TRYING TO AVOID ADDING MORE COST TO THE BOTTOM LINE.

IF WE INCREASE, AGAIN, IN YEAR 2 AND AGAIN IN YEAR 3, THEN THAT $208 MILLION RECURRING COSTS GOES UP.

IN THE CONTEXT OF THE DEFICIT THAT WE HAVE TALKED ABOUT, THAT DOES NOT FEEL LIKE THE RESPONSIBLE RECOMMENDATION AT THIS TIME.

>> THANK YOU FOR THAT EXPLANATION. I'M SORRY.

WITH RESPECT TO THE PERCENTAGE IN THE BUDGET IS SALARY 64 PERCENT AND 72 PERCENT, [NOISE] HOW DOES COMPARE THAT TO OTHER DISTRICTS? DO YOU KNOW?

>> I CAN TELL YOU IN REFERENCE TO THE DISTRICTS THAT I'VE BEEN CONNECTED WITH, BUT GLENN, IF YOU HAVE SOME NATIONAL PERSPECTIVE, IF NOT WE'D BE GLAD TO GIVE YOU SOME MORE DISTRICTS THAT ARE ABOUT OUR SIZE AND WHAT THAT LOOKS LIKE.

>> I CAN GET IT BUT I DON'T HAVE ANY NUMBERS OF [OVERLAPPING] DIFFERENT.

I'VE LOOKED AT IT NOW AND HAVE THEM IN FRONT OF ME.

>> OKAY.

>> THANK YOU.

>> WILL GET THERE.

>> I'LL WRAP-UP ROUND 1 AND THEN FOR ROUND 2, WE'LL START WITH ODD TRUSTEES AND THEN EVEN.

JUST CHANGING IT UP YOU ALL.

ALL RIGHT SO JUST WANT TO START BY SAYING, THANK YOU, SUPERINTENDENT HOUSE TO YOU AND YOUR STAFF FOR YOUR LEADERSHIP ON THIS MUCH MUCH OVERDUE COMPENSATION PACKAGE.

REALLY WANT TO THANK YOU AS WELL FOR SEEKING OUTSIDE EXPERTISE SUCH AS ALVAREZ AND MARCELL TO REALLY TAKE A LOOK AT OUR AUDITING OUR FINANCES, AND REALLY THINKING THROUGH THESE SYSTEMS AND I LOOK FORWARD TO SEEING THAT PROCESS AND WHAT YOU'RE ABLE TO SHARE WITH US OVER THE COMING MONTHS.

I'M ALSO REALLY EXCITED TO SEE THAT NEWER TEACHERS WILL BE GETTING A LARGER STEP SINCE WE KNOW THAT'S WHEN WE LOSE A LOT OF OUR TEACHERS.

QUESTION ON SLIDE 10.

THANK YOU FOR SHARING THAT RETENTION RATE AND I'M WONDERING, WHAT WAS THAT PRIOR TO COVID, AND I KNOW THAT 2019 REALLY WAS, BUT JUST LIKE IN YEARS BEFORE THAT, WAS IT SIMILARLY IN THE 80 PERCENTAGE POINTS OR WAS IT MORE OR LESS, DO WE KNOW.

>> CHIEF GRANT SKINNER, ANY INSIGHT AND REFERENCE TO WHAT THAT LOOKED LIKE PREVIOUS TO THE IDENTIFIED YEARS ON THE SCREEN?

>> I DON'T HAVE WITH ME EXACT NUMBERS, BUT IT WAS NOT SIGNIFICANTLY DIFFERENT.

I WOULD SAY THAT WHAT YOU SEE HERE IN 2020 ACTUALLY REFLECTS WHAT THE EXPERIENCE WAS IN A LOT OF DISTRICTS IN 2020 THAT IN THESE EARLIER MONTHS OF THE PANDEMIC, ACTUALLY PEOPLE HELD ONTO THEIR JOBS BECAUSE THEY WERE SUCH UNCERTAINTY SO RETENTION ACTUALLY WENT UP.

WHEN YOU SEE THAT 2020, WE EXPERIENCE A HIGHER RETENTION RATE AND THEN IN TYPICAL YEARS, THAT IS REFLECTIVE OF WHAT MANY DISTRICTS EXPERIENCED.

>> THANK YOU, AND THEN A QUESTION ON PAGE 36.

I'M CURIOUS ABOUT THESE METRICS FOR MEASURING OUR TALENT.

SPECIFICALLY, YEAR-TO-YEAR RETENTION RATE OF HIGHEST PERFORMING TEACHERS.

I MEAN, I THINK WE HEARD TRUSTEE [INAUDIBLE] AND A COMMUNITY MEMBER BOTH TALK ABOUT IT.

SALARY IS IMPORTANT, BUT OBVIOUSLY THERE'S MUCH MORE TO THAT AND I'M JUST CURIOUS WHAT THIS LOOKS LIKE IN THE LONG-TERM.

>> WE'D BE GLAD TO PULL THAT AND PROVIDE IT FOR OUR TRUSTEES AS WELL.

I DON'T KNOW THAT WE HAVE THAT AVAILABLE FOR US RIGHT NOW, BUT WE WILL BE GLAD TO PULL IT.

>> ON PAGE 39, I HAVE A QUESTION AND I THINK THIS IS A FOLLOW-UP TO TRUSTEE SANTOS.

BASED ON THE CONSTITUTIONAL AMENDMENTS THAT WERE JUST PASSED IN TEXAS, OUR PROPERTY VALUES ARE LOWERED, WHICH REDUCES OUR TAX RATE, BUT IT ALSO REDUCES OUR RECAPTURE.

WE'RE OKAY, WE'RE NOT REALLY LOSING MONEY. IS THAT CORRECT?

>> THAT'S CORRECT.

>> ARE THERE ANY LONG-TERM IMPACT [NOISE] WITH THAT CONSTITUTIONAL AMENDMENT FOR US?

>> THE LONG-TERM IMPLICATIONS FAR AS OUR GENERAL FUND SIDE, THERE REALLY ISN'T.

[01:35:03]

IT KEEPS OUR RECAPTURE PAYMENT LOWER.

THE LONG-TERM IMPLICATIONS ARE FOR A BOND ISSUANCE, FOR EXAMPLE.

NOW THAT PROPERTY VALUES ARE LOWER BECAUSE THAT INCREASE HOMESTEAD EXEMPTION, IT TAKES MORE OF A TAX RATE TO GENERATE TAXES TO PAY BACK DEBT.

>> OTHER THAN THE BOND IN TERMS OF LIKE OUR ANNUAL BUDGET, WE SHOULDN'T BE CONCERNED.

>> WE SHOULD NOT? NO, MA'AM.

>> OKAY.

>> JUST TO ADD PRESIDENT CRUZ, TRUSTEE SANTOS ASKED OR SHARED A CONCERN SPECIFICALLY ABOUT THE CUT IN LOBBYING AND LEGISLATIVE SUPPORT AT THE STATE LEVEL.

WE WILL KEEP THAT SUPPORT THE SAME, THAT CUT WAS A LITTLE BIT IN A DIFFERENT AREA. JUST FYI.

>> THANK YOU SO WE'LL GO BACK TO ODD NUMBER TRUSTEES.

TRUSTEE SANTOS.

>> [INAUDIBLE].

>> OH, DO YOU WANT ME I CAN [LAUGHTER].

>> NO GO AHEAD.

>> I GET SO CONFUSED GOING BACKWARDS.

[LAUGHTER]

>> THANK YOU, PRESIDENT CRUZ, SUPERINTENDENT HOUSE.

SOME OF THESE QUESTIONS, I KNOW WON'T BE ABLE TO BE ANSWERED TODAY.

I'M PUTTING THEM IN AS A Q&A, SO AS FAR AS PAGE 35.

WE DON'T SEE THE COMPENSATION PLAN FOR SSOS, AREA SUPERINTENDENTS, AND JUST THE TOP LEVEL EXECUTIVE HAC ADMINISTRATION.

DO WE HAVE A DOLLAR AMOUNT OF HOW MUCH THAT'S GOING TO BE FOR THEIR RAISES?

>> HOW MUCH THE OVERALL DOLLAR AMOUNT WILL BE? WE CAN GET THAT INSIGHT AS WELL.

>> IN ORGANIZATIONAL CHART WOULD BE GREAT.

I KNOW THERE ARE A LOT OF CHANGES, AND WE'D LIKE TO SEE THAT.

BUT I'M MORE CURIOUS AS TO ON PAGE 35, A GREAT PLACE TO WORK.

WHAT ARE WE DOING TO BUILD CULTURE AND MORALE AND HONOR OUR TEACHERS, NOT JUST IN WORDS, THIS IS A GOOD ACTION.

BUT AS A COMMUNITY WE WANT TO VALUE OUR TEACHERS.

WHAT IS IT THAT WE'RE DOING TO INSPIRE THAT?

>> I THINK AS YOU LOOK AT COMMITMENT NUMBER 1, IN TERMS OF TRUST AND RELIABILITY, I THINK THE NATURAL THING TO THINK ABOUT IS THAT BEING A OUTERFACE IN COMMITMENT, BUT IT'S ALSO AN INTERFACE AND COMMITMENT AS WELL.

WE WANT TO ENSURE, AND I KNOW IN OUR SCHOOLS OFFICE AND QUITE FRANKLY, EVERY ONE OF OUR CHIEFS ARE REALLY FOCUSING THEIR EFFORTS ON ENSURING THAT THAT TRUST AND RELIABILITY HAPPENS.

SPECIFICALLY, AS I THINK THROUGH THIS, I KNOW THAT CHIEF WATTS HAS HAS DONE SOME SURVEYING OF PRINCIPLES AS WELL, AND ONE OF THE THINGS THAT WE'RE DOING RIGHT NOW THROUGH OUR ENGAGEMENT OFFICE IS A NEW SURVEY.

THOSE OF YOU THAT ARE PARENTS AND HIST PROBABLY HAVE RECEIVED SOME SURVEY THROUGH POCIP.

I ACTUALLY RECEIVED THE SURVEY MYSELF AS A PARENT.

BUT THAT'S GOING TO PROVIDE MORE INSIGHT TO US.

OUR PRINCIPLES HAVE BEEN VERY INTERESTED IN LEARNING WHAT THAT DATA LOOKS LIKE FOR THEIR SCHOOLS, WE WILL BE ABLE TO SHARE SOME OF THAT IN JUNE.

BUT IT WILL GIVE US GREAT INSIGHT AROUND CULTURE, AROUND WHERE THINGS ARE HEADING, AND IT WILL HELP US GUIDE OURSELVES IN OUR DECISION-MAKING AND NEXT STEPS AS WELL.

>> THANK YOU. HOW DOES THE NEW COMPENSATION PLAN AFFECT SECURITY? I KNOW THAT I JUST WANTED TO PUT THAT IN LAST [INAUDIBLE].

>> WHAT I WILL SHARE IN REFERENCE TO THAT QUESTION.

ONE OF THE THINGS THAT I CAN'T REMEMBER WHO IT WAS EARLIER, BUT IN THE $60 MILLION CUT THAT WE DID AT CENTRAL OFFICE, THERE WERE A COUPLE SPECIFIC AREAS; LEGAL, FINANCE AND LAW ENFORCEMENT THAT WE DID HOLD HARMLESS SO THERE WAS NO CUTS TO THOSE PARTICULAR AREAS.

WE JUST FELT LIKE WITH PREVIOUS CUTS IN FINANCE, AND WHERE WE ARE FROM A SOCIETAL STANDPOINT IN TERMS OF LAW ENFORCEMENT, WE JUST COULDN'T AFFORD TO PUT OURSELVES IN A POSITION TO REDUCE THE KIND OF SAFETY THAT WE KNOW IS IMPORTANT FOR OUR STUDENTS AND EMPLOYEES.

>> I'D LIKE TO KNOW WHAT THAT SAFETY PLAN IS IN THE FUTURE.

MAYBE WE CAN HAVE A WORKSHOP IN DISCUSSION LIKE THE TEAM THAT WE ARE, AND THE LAST QUESTION FOR NOW IS GOING TO BE ON PAGE 50.

SECOND BULLET, STABILIZE AND IMPROVE REVENUES, OPTIMIZE HMACS, USE OF ITS REAL ESTATE MONETIZE ASSETS WHERE APPROPRIATE AND CONSIDER PUBLIC PRIVATE PARTNERSHIPS FOR QI PROJECTS.

IT HAS BEEN DISTRESSED USER EXPERIENCED BOTH AS A STUDENT VOLUNTEER, TEACHER, SO FORTH AND WHEN WE SHUT SCHOOLS DOWN OR CONSOLIDATE SCHOOLS, WE HAVE TO BE VERY MINDFUL OF WHAT IT DOES TO THE COMMUNITY.

THIS TRUSTEE CAN EVER VOTE TO CLOSE A SCHOOL, BUT REPURPOSING, MAYBE HAVING SOCIAL SERVICES FOR WHATEVER REAL ESTATE WE HAVE AND PARTNERING WITH

[01:40:03]

HARRIS COUNTY DEPARTMENT OF EDUCATION OR COUNSELING SERVICES RIGHT NOW IS A HUGE NEED.

BOTH GUN VIOLENCE AND MENTAL HEALTH, THOSE CONCERNS ARE ON THE RISE, THEY'RE HERE.

WE NEED TO ADDRESS THAT.

[NOISE]

>> COULDN'T AGREE MORE IN GOING THROUGH THIS PROCESS AND IN A PREVIOUS DISTRICT THAT I WORKED WITH, IT WAS SOMETHING ON THE FRONT END THAT WE TRIED TO ESTABLISH BECAUSE THE UPKEEP OF A CLOSE FACILITY IS EXPENSIVE QUITE FRANKLY, AND WITHOUT A PLAN TO EITHER SELL OR LEASE OR WHATEVER IT MAY BE, IS NOT A RESPONSIBLE PLAN.

>> THANK YOU, SUPERINTENDENT.

>> TRUSTEE HERNANDEZ.

>> THANK YOU. MY FIRST QUESTION IS ON THE COMPLEXITY FACTOR OR RISK LOAD.

I KNOW WE'VE ASKED BEFORE FOR THE FORMULA, HAVE WE RECEIVED THAT? I DON'T THINK I'VE SEEN ONE.

>> CHIEF GRANT SKINNER.

>> WE CAN CHECK, I BELIEVE THAT HAS BEEN PROVIDED BEFORE.

THIS WAS DEVELOPED BY OUR RESEARCH AND ACCOUNTABILITY TEAM.

>> THANK YOU. THEN MY NEXT QUESTION IS ABOUT THE APN DEAN.

I KNOW I'VE BROUGHT THIS UP BEFORE [OVERLAPPING] APN DEAN POSITIONS.

THERE IS ANOTHER PERSON.

>> [OVERLAPPING] WHICH SLIDE ARE YOU ON?

>> TWENTY FOUR.

>> TWENTY FOUR.

>> THERE ARE OTHER POSITIONS THAT MASQUERADE THEMSELVES AT A DIFFERENT TITLE, BUT THAT WORK IS ACTUALLY AS APN DEAN, I KNOW THAT YOU SAID THAT YOU ARE GOING TO FOLLOW UP ON THIS.

DO YOU HAVE A FOLLOW-UP?

>> A PART OF WHAT WE'RE DOING OUT OF OUR SCHOOLS OFFICE IS ENSURING THAT IF A POSITION IS AN ASSISTANT PRINCIPALS POSITION, A INSTRUCTIONAL POSITION, THAT THOSE INDIVIDUALS ARE FOCUSING THEIR EFFORTS IN DOING THAT POSITION.

THAT IS SOMETHING THAT DR. WATSON IS PUSHING RIGHT NOW BECAUSE THERE HAS BEEN INCONSISTENCY AS I'VE PROBABLY BEEN TO 80, SOME ODD SCHOOLS THIS YEAR.

I'VE SEEN SOME OF IT IN TERMS OF JUST WHO GREETS ME, WHO WALKS ME THROUGHOUT THE BUILDING, THE CONVERSATIONS THAT I HAVE THAT INSTRUCTION EYE IN TERMS OF WHAT I LOOK FOR AS WELL.

BUT THAT IS SOMETHING THAT WE ARE WORKING TOWARDS TO HAVE THAT RELIABILITY FROM BUILDING TO BUILDING AROUND POSITIONS.

THAT IS AN EXPECTATION THAT WE WILL BE PUSHING, ESPECIALLY WHEN WE'RE MAKING THE CHANGES THAT WE'RE MAKING.

>> THANK YOU. THEN ON PAGE 47, IT SAYS THAT THERE'S AN INCREASE IN BOARD POLICY MINIMUM FUND BALANCE.

CAN YOU JUST EXPLAIN A LITTLE BIT MORE ABOUT WHAT THAT PHRASE MEANS?

>> CHIEF WATSON, CAN YOU SHARE SOME INSIGHT HERE?

>> SURE. CE LOCAL LAYS OUT THE BOARD POLICY THAT WE HAVE A MINIMUM OF THREE MONTHS FUND BALANCE.

WHAT THAT MEANS IS IF OUR BUDGET GOES UP THEN THAT AMOUNT THAT HAS TO BE SET ASIDE FOR THE MINIMUM WOULD GO UP AS WELL, AND OF COURSE VICE VERSA.

>> YES. THAT'S WHAT I THOUGHT, JUST MAKING SURE THAT THE MINIMUM WASN'T CHANGING.

THEN ON PAGE 49, LOOKING AHEAD, IT WAS MENTIONED THAT THERE WAS A REPORT THAT SOME STUDY THAT IS BEING DONE RIGHT NOW.

WHEN SHOULD WE EXPECT A REPORT FROM THAT STUDY?

>> WE PUTTING TOGETHER WHO WAS GOING TO BE THE PROJECT TEAM, PROJECT MANAGEMENT OUTSIDE ORGANIZATION.

THAT'S THE PORTION THAT WE'RE WORKING ON RIGHT NOW.

MY HOPE IS TO HAVE THAT ESTABLISHED THIS SUMMER SO THAT BETWEEN SUMMER AND HOPEFULLY DECEMBER-ISH, WE CAN COME BACK AND HAVE A REALLY GOOD IDEA TO TELL YOU-ALL, THESE ARE GOING TO BE THE STRATEGIES THAT A YIELD US WHAT WE NEED TO HAVE DONE OVER THE COURSE OF THE NEXT THREE TO FIVE YEARS.

BUT AS I'VE SHARED, AS JIM HAS SHARED AS WELL, THAT WILL TAKE SOME TIME TO ACTUALLY STUDY.

BUT WE'RE EXCITED ABOUT GETTING THE WORK STARTED.

>> WHEN I JOINED THE BOARD IN 2020, THERE WAS A PROPOSAL TO GO OUT FOR OUR BOND AND THERE HAD BEEN SOME WORK ALREADY DONE AROUND FACILITIES IN THE DISTRICT.

HAVE YOU-ALL LOOKED AT INTO THAT WORK? HAS THAT BEEN PART OF THE PLAN FOR THE STUDY SO THAT IT CAN JUST COME TOGETHER, MAYBE FACILITATE THAT STUDY?

>> CHIEF PAUL OR CHIEF OPERATING OFFICER, AS YOU ALL KNOW, HAD MOVED FORWARD AND PUT TOGETHER A VERY INSIGHTFUL GROUP THAT WAS OUR BOND OVERSIGHT COMMITTEE.

THEY WERE PULLING SOME OF THAT DATA, TAKING A CLOSE LOOK AT DEFERRED MAINTENANCE,

[01:45:01]

SOME OF THE THINGS THAT NEEDED TO BE DONE THROUGHOUT THE DISTRICT.

OF COURSE, WITH SOME OF THE INFORMATION THAT WE RECEIVED BACK FROM RISE, JUST SHARED WITH US THAT IT WASN'T THE RIGHT TIME.

YES TO ANSWER YOUR QUESTION, SOME OF THAT HAS BEEN LOOKED AT AND WE'LL BE CONTINUING.

THAT GROUP WILL RECONVENE, I BELIEVE IN OCTOBER IF I'M NOT MISTAKEN.

I BELIEVE IN OCTOBER THEY'LL RECONVENE AND START DIVING DEEPER INTO THAT DATA.

>> THANK YOU. THAT IS ALL MY QUESTIONS FOR NOW.

>> TRUSTEE DIGUARD.

>> THANK YOU. PAGES 49-51, WHAT'S BEEN STARTED? WHAT HASN'T BEEN STARTED? WHAT IS THE TIMELINE FOR ALL OF THIS? WHO IS LEADING IT? I'M INCLUDING HIS A&M INVOLVED AND ARE THERE GOING TO BE TOUCH POINTS ALONG THE WAY WHERE YOU GIVE UPDATES TO THE BOARD?

>> GREAT QUESTION. UPDATES WE DEFINITELY WANT TO PROVIDE ALONG THE WAY AS TRUSTEE HERNANDEZ JUST HEARD.

THE IDEA IS FOR US TO PUT TOGETHER THE WHO FIRST.

OF COURSE I CAN'T LEGALLY SAY WHO THE WHO IS GOING TO BE AS OF YET.

BUT WE KNOW THAT WE HAVE SOME INDIVIDUALS THAT WE WANT INVOLVED WHEN WE TAKE A CLOSE LOOK AT THAT PROCESS AND IT COULD BE A&M, IT COULD BE SOMEONE ELSE AS WELL.

>> I MEAN, FOR ALL OF THESE THINGS; THE COMPREHENSIVE FINANCIAL.

>> WHAT I SHOULD'VE SAID THAT A& M COULD BE PART OF THAT TEAM, BUT WE'VE HAD CONVERSATIONS WITH OTHER ORGANIZATIONS THAT DO THIS PORTIONS OF THIS WORK AS WELL.

IT WILL BE A PROJECT MANAGEMENT TEAM AS A WHOLE THAT WILL BRING TOGETHER.

A&M WOULD, OF COURSE, IF THEY WERE THE ORGANIZATION THAT FOCUS ON THE FINANCIAL PIECE, THEY ALSO HAVE AN OPERATIONAL ARM AS WELL THAT WE FOUND OUT ABOUT.

BUT WE ARE LOOKING AT THE WHO RIGHT NOW TO DETERMINE WHAT THAT TEAM IS GOING TO LOOK LIKE.

HOPEFULLY WE'LL HAVE IT ESTABLISHED THIS SUMMER.

YOU ASKED ABOUT TIMELINE AS WELL.

OUR HOPE IS TO GET THAT WORK STARTED STARTING LATE SUMMER, EARLY STARTED THE SCHOOL YEAR, AND THROUGH DECEMBER BE ABLE TO COME BACK AND HAVE IT FINALIZED.

BUT AS YOU INDICATED EARLIER IN-BETWEEN TIME, BE ABLE TO PROVIDE SOME INSIGHTS AROUND WHAT THE PROGRESS THAT HAS OCCURRED ALONG THE WAY.

>> YOU HAVEN'T DONE ANYTHING TO START A COST BENEFIT ANALYSIS OR THIS DEEPER DIVE BOTTOMS-UP THING ON CENTRAL OFFICE BUDGET, LIKE NONE OF THIS IS GOING TO BE STARTED UNTIL LATER THIS YEAR.

NONE OF THE SAME PROCESS?

>> WE'VE GOT TO BUILD THE TEAM FIRST.

ONCE WE HAVE THE TEAM BUILT, THE PROJECT MANAGEMENT TEAM WILL BE STARTING SOMEWHERE IN REFERENCE TO WHAT THAT LOOKS LIKE.

>> THIS TRUSTEE IS GOING TO HAVE TO SEE A TIMELINE OF WHEN ALL THIS IS GOING TO ACTUALLY HAPPEN IN A PUBLIC COMMITMENT FROM THE ADMINISTRATION TO GET ME TO YES.

>> OKAY.

>> THANK YOU.

>> TRUSTEE WADE.

>> I'M GOING TO TALK ABOUT THE ALIGNMENT TO GOALS CONVERSATION AND PIGGYBACK ON THAT.

I'M ALSO GOING TO TALK ABOUT FOCUSING ON RESOURCES TO SCHOOLS.

THERE'S A LOT OF TALK ABOUT TEACHERS THAT WE FOCUSED ON TODAY AND THAT'S CRITICALLY IMPORTANT.

BUT IT'S TIME TO REGAIN OUR FOCUS ON OUR STUDENTS.

THAT'S REALLY CRITICAL AND THE MORE WE CAN HEAR ABOUT THAT GOING FORWARD WOULD BE WONDERFUL.

IF WE EDUCATE KIDS WELL, OUTCOMES WILL IMPROVE MENTAL, PHYSICAL, AND EMOTIONAL.

I WANT TO MAKE SURE THERE'S A FOCUS.

ALSO, I WANT TO TALK ABOUT THIS.

HOW DO WE PLAN TO DEAL WITH THE VOLUMINOUS CONTRACT ASSORTMENTS THAT WE HAVE WITHIN THE DISTRICT AND HIS PART OF THIS PLAN GOING TO BE TO AUDIT SOME OF THESE CONTRACTS THAT ARE PRESENTED TO US SO THAT WE CAN BETTER ALIGN THEIR CONTRACTS TO OUR GOALS AS WELL AS MAKE SURE WE'RE NOT SPENDING MONEY ON THINGS THAT ARE ALREADY BEEN DONE IN OTHER PRODUCTS.

I THINK THERE NEEDS TO BE SOME CONVERSATION ABOUT THAT.

I WANT TO GO BACK TO THE SR FUND ALLOCATION AND DISCUSS WITH YOU THE DASHBOARD, AND HOW WILL THIS NEW CHUNK OF SR FUNDS GOING TOWARDS TEACHERS SALARIES GOING TO AFFECT THIS DASHBOARD THAT YOU HAVE ALREADY CREATED.

IT'S GOING TO AFFECT THAT BECAUSE YOU'RE TAKING MONEY FROM THAT TOO, AM I CORRECT?

>> THE DASHBOARD WILL BE REFLECTIVE.

>> RIGHT, BUT IT GOES TO POINT.

[01:50:03]

THAT IS THE BUDGET.

THE SR BUDGET WAS THERE.

THOSE FUNDS WERE ALREADY BUCKETED FOR INCREASED SALARIES AND THEY'RE JUST MOVED FURTHER INTO THE FUTURE TO THE PRESENT, OR ARE THEY FUNDS THAT ARE BEING STRIPPED FROM OTHER AREAS OF THE SR BUCKET?

>> WE'RE REVIEWING THE EXTRA BUDGET AND THERE'LL BE SOME FUNDS LEFTOVER FROM THIS YEAR THAT WE CAN USE GOING INTO NEXT YEAR.

IT WILL NOT IMPACT ANY OF THE DOLLARS WE'VE ACTUALLY ALLOCATED OUT TO CAMPUSES NEXT YEAR.

>> OKAY. SO NOTHING WILL CHANGE ON ALLOCATIONS TO CAMPUSES.

>> WILL NOT.

>> OKAY, AND YOU CAN PROMISE THAT.

>> YES, MA'AM. [NOISE]

>> MY TURN.

>> TRUSTEE GETS RIGHT.

>> THANK YOU.

>> FIRST OF ALL, IF I DIDN'T SAY IT BEFORE AND I DON'T KNOW THAT I DID, I WANT TO THANK YOU, SUPERINTENDENT HOUSE, AND YOUR STAFF FOR LISTENING TO THE TEACHERS, THE COMMUNITY AND EMPLOYEES, AND STAKEHOLDERS WITH RESPECT TO THE PAYMENT FOR TEACHERS AND OTHER STAFF.

THANK YOU ALL FOR YOUR HARD WORK THAT YOU PUT INTO MAKING SOMETHING THAT'S ACCEPTABLE AT THIS POINT TO THE BOARD.

I WANT TO ASK ABOUT THIS REPURPOSING OF THE BUILDINGS.

I'D LIKE TO GET SOME INFORMATION ON WHICH BUILDINGS ARE CLOSED, WHICH NEIGHBORHOODS THEY ARE LOCATED IN, AND ARE THERE ANY POSSIBILITIES OF REPURPOSING ANY OF THOSE BUILDINGS? BECAUSE I KNOW THERE ARE SOME IN OUR COMMUNITIES THAT'S JUST NOT LOOKING PRETTY AND SO WE NEED TO FIND OUT WHAT, IF ANYTHING, WE CAN DO TO ASSIST IN THOSE AREAS.

ON SLIDE 40, THE 18801599 AT THE BOTTOM OF SLIDE 40, AND IT SAYS LAST YEAR LOSSES DUE TO SUBSTANTIAL ERROR CORRECTIONS.

WHAT EXACTLY DOES THAT MEAN AND WHO MADE THOSE SUBSTANTIAL ERRORS? WAS IT HISD?

>> CHIEF READ, CAN YOU SHARE SOME INSIGHT HERE, PLEASE?

>> YEAH. THAT'S A NUMBER THAT ACTUALLY COMES FROM THE HARRIS COUNTY APPRAISAL DISTRICT.

IT'S JUST ITS CORRECTIONS TO THE ROLE FROM THE PRIOR YEAR THAT, OF COURSE, IMPACTS OUR VALUES GOING INTO THE NEXT YEAR.

>> THAT'S ON THE HARRIS COUNTY APPRAISAL DISTRICT TO MAKE THOSE CORRECTIONS.

>> THEY MAKE THE CORRECTIONS. I DON'T KNOW THE INTRICACIES ON WHAT CAUSES THEM.

BUT YES, THEY DO MAKE THOSE CORRECTIONS.

>> OKAY. WE DO HAVE SOMEBODY ON HIS BOARD ON THAT, SO MAYBE WE CAN LOOK INTO THAT.

THEN MY FINAL QUESTION IS ON SLIDE 43.

IT LOOKS LIKE THERE IS AN ADDITIONAL 70.5 MILLION ADD IT TO THE GENERAL FUND BUDGET.

IS THAT CORRECT? BECAUSE IF WE HAVE AN IMPROPRIATION INCREASE OF 2305 AND AN APPROPRIATION DECREASE OF 93.10, IF YOU SUBTRACTED THOSE, IT'S 70.05 [NOISE] AM I READING THAT INCORRECTLY? IF I'M NOT READING THAT INCORRECTLY, WHERE DOES THAT SHOW UP IN THE BUDGET, BECAUSE I DON'T SEE THAT 70?

>> SEE YOU'VE ALSO GOT TO INCLUDE THE INCREASE IN RECAPTURE PAYMENT THAT 34, THE SALARIES OF 6686 AND THE 5TH [OVERLAPPING] THOSE LINES ARE INDEPENDENT.

THE RECAPTURE PAYMENT, THAT'S AN EXPENDITURE.

THE SALARIES OR EXPENDITURE YOU HAVE TO ADD THAT, THE TRANSFER OUT OF SALARIES IS A DECREASE.

THIS ISN'T WHERE IT SAYS INCREASES TO APPROPRIATIONS.

I CAN UNDERSTAND WHERE YOU GOT THE X, I PUT TOTAL THERE.

BUT THESE ARE OTHER INCREASES.

IT'S NOT ADDING EVERYTHING UP.

>> OKAY. GOT YOU. THANK YOU.

>> TRUSTEE ALLEN.

>> MY FIRST INFORMATION OR WHATEVER IT'S NOT A QUESTION, IS THAT EVERYBODY IN THE DISTRICT IS, WE KEEP ASKING FOR THESE ORGANIZATIONAL CHARTS ALL THE TIME.

EVERYBODY IN THE DISTRICT HAS ACCESS TO THE ORGANIZATIONAL CHARTS IN ONE SOURCE BUT THE BOARD DOES NOT.

EVERY TIME SOMETHING MOVES, EVERYBODY ELSE ON DISTRICT CAN SEE AN ORGANIZATIONAL CHART.

WE DON'T HAVE ACCESS TO THAT.

CAN WE GET ACCESS TO THAT?

>> WE'LL SEE IF WE CAN WORK ON IT IN TERMS OF WHAT YOU HAVE ACCESS TO.

I DON'T HAVE ACCESS TO WHICH YOU HAVE ACCESS TO?

>> I DON'T HAVE ACCESS TO SOMEBODY SHOWED IT TO ME [LAUGHTER]

>> BECAUSE WE KEPT ASKING IS CAN WE SAY WHO AND WHO'S OVER THAT PERMANENT? THEN SOMEBODY SAID, WELL, YOU CAN JUST LOOK ON THE ONE SOURCE AND SEE IT.

I'M LIKE, NOT ALL MY ONE SOURCE WHEN I OPENED UP ONE SOURCE MINE IS BLANK.

>> MAX, LET'S LOOK INTO THAT AND SEE HOW WE CAN MAKE SURE THAT THEY HAVE UPDATED ACCESS.

[01:55:04]

>> MY OTHER CONCERN IS ABOUT A PART OF THE STRATEGIC PLAN, NOT ON THE BUDGET, BUT SINCE THE SCHOOLS DON'T HAVE TO GET THE LIBRARIANS, I'M STILL COMING ACROSS SCHOOLS THAT HAVE NO BOOKS.

THEY'RE CONCERNED ABOUT WHEN THEY GET A LIBRARIAN, THEY HAVE A LIBRARY SPACE BUT NO BOOKS.

I CAME ACROSS THEIR SCHOOL LAST WEEK AND I ASKED THE PRINCIPAL, I SAY, WELL, DIDN'T YOU GET SR FUNDS? BECAUSE I KNOW WE WERE PROMISED THAT EVEN IF THEY DIDN'T HAVE A LIBRARIAN, THEY WILL STILL GET THE SR FUND.

THIS PRINCIPAL SAID, "NO, WE WROTE A GRANT, SO WE COULD GET SOME BOOKS, BUT NO, WE DIDN'T GET ANY EXTRA FUNDS." I KNOW THAT THERE ARE OTHER SCHOOLS THAT HAVE ALREADY STARTED GETTING THEIR BOOKS IN, BUT THIS SCHOOL DIDN'T GET ANY SR FUNDS FOR THAT LAST SCENARIO.

>> CHIEF BEARD CAN DEFINITELY GIVE US SOME INSIGHT IN REFERENCE TO EXACTLY WHAT ALLOCATION SCHOOLS GOT, WHETHER IT'D BE ELEMENTARY, MIDDLE, OR HIGH SCHOOL.

CHIEF BEARD [BACKGROUND] PUSH YOUR BUTTON.

>> CAN I TELL YOU THE SCHOOL?

>> [OVERLAPPING] EVERY SCHOOL HAS AN ALLOTMENT.

WE CAN GIVE YOU A LIST OF WHAT SCHOOLS HAVE ALREADY ORDERED.

>> YOU MUST DO THAT DOESN'T HAVE.

>> YEAH. BUT EVERY SCHOOL DOES HAVE AN ALLOTMENT AND SOME OF THEM HAVE ALREADY ORDERED THEM.

SOME OF THEM ARE GOING TO COME IN FOR NEXT YEAR.

BUT WE CAN GIVE YOU. WE HAVE A BREAKDOWN OF HOW MANY DOLLARS EVERY SCHOOL HAS SPENT TO DATE. I CAN GET YOU THAT.

>> I'M GOING TO GIVE YOU THE NAME OF THIS SCHOOL OF THAT.

>> OKAY [LAUGHTER] OR YOU CAN JUST TEXT IT TO ME.

PASS IT THIS WAY. WE'LL GET IT.

>> DO YOU HAVE ANY OTHER QUESTIONS, TRUSTEE ALLEN?

>> NO.

>> OKAY.

>> THANK YOU.

>> TRUSTEE BAKER.

>> THANK YOU VERY MUCH. I WAS GOING TO PASS, BUT I WANTED TO JUST DIAL BACK AND SAY, THANK YOU FOR YOUR TREMENDOUS FOR HAVING A LISTENING EAR AND HEARING THE PUBLIC, HEARING THE TEACHERS, AND ANSWERING IT.

ONE THING I LIKE AS A NEW TRUSTEE IS THAT YOU'VE BEEN RESPONSIVE, AND SO ARE YOU HAPPY WITH THE BUDGET?

>> WE WOULD DEFINITELY LOVE TO SEE THE DEFICIT COMPLETELY CLOSED TOMORROW, BUT I'M HAPPY WITH THE DIRECTION THAT WE'RE HEADING.

I'M HAPPY THAT WE'RE DOING OUR BEST TO LIVE UP TO WHAT WE SAID ON THE FRONTEND OF THE STRATEGIC PLAN AND BEING IS TRANSPARENT AS POSSIBLE.

LISTENING, ENGAGING OUR STUDENTS, OUR COMMUNITY, THAT IS SOMETHING THAT WE WANT TO CONTINUE TO DO AND I THINK THAT HAS BEEN REFLECTIVE PART OF THIS PROCESS.

>> JUST TO FOLLOW UP ON THE COMMENT THAT MY COLLEAGUES HAVE MADE REGARDING THE CULTURE, HAS THE CONCLUSION THAT WE MADE TODAY THAT THE INCREASE IN SALARIES STOP THE MASS EXODUS OF TEACHERS AS WE MENTIONED?

>> WE HAVE DEFINITELY SEEN A COUPLE OF DATA POINTS THAT WE BELIEVE ARE HELPING OR PUSHING US IN THE RIGHT DIRECTION.

ONE DATA POINT, AND IN PARTICULAR THAT CHIEF GRANT SKINNER AND I TALKED ABOUT IN THE LAST COUPLE OF WEEKS WAS THE NUMBER OF TEACHERS THAT MADE THE THREE-YEAR COMMITMENT, AND THERE WAS A STIPEND FOR THAT THREE-YEAR COMMITMENT, AND I BELIEVE WE HAD ABOUT 8,000.

IS THAT CORRECT, CHIEF GRANT SKINNER? WE BELIEVE TODAY'S INSIGHT AND INFORMATION THAT WE MADE DURING OUR PRESS CONFERENCE WILL PROVIDE EMPLOYEES WITH EVEN MORE EXCITEMENT ABOUT ENSURING THAT THEY STAY HOME AT EACH ISD.

WE DEFINITELY THINK THESE THINGS HAVE MADE A DIFFERENCE AND WE'LL CONTINUE TO MAKE A DIFFERENCE MOVING FORWARD.

>> GOOD. THANK YOU. WITH REGARDS TO SAFETY, JUST FOLLOW UP WITH [INAUDIBLE] POINT ABOUT THE COMMERCE STAFF, BECAUSE I SPENT THE BETTER PART OF MY ADULT LIFE WORKING IN AN EMERGENCY WITH THE CITY OF HOUSTON.

HAVE YOU CONSIDERED PARTNERING, I'M SURE YOU HAVE, WITH HOUSTON TRANS STORE AND PERHAPS THE HOUSTON EMERGENCY CENTER TO SEE, BECAUSE I KNOW WAY TO HOUSTON TRANS STORE, YOU HAVE DIFFERENT AGENCIES THEIR ALREADY.

YOU'VE CITY OF HOUSTON, YOU HAVE HARRIS COUNTY AND SO FORTH.

WHEN THE TIME OF EMERGENCY HAPPENS, YOU MAY WANT TO TAP INTO SOME OF THOSE RESOURCES.

>> WHAT I CAN SAY BOTH THE CONSTABLE OFFICE THAT SHARE, WELL, WE HAVE EIGHT DIFFERENT I THINK DISTRICTS WAS CONSTABLE'S OFFICE BUT THE SHERIFF'S DEPARTMENT, AS WELL AS HPD, HAVE ALL COMMITTED TO WORK VERY CLOSELY WITH THE HOUSTON CITY AND DOING WHATEVER IS NECESSARY TO SUPPORT OUR EFFORTS AROUND SCHOOL SAFETY.

WE HAVE THE PARTNERS IN PLACE THAT ARE WILLING TO CONTINUE TO WORK WITH US AS WE MOVE DOWN THIS ROAD.

OF COURSE, THEY'RE GOING TO BE OPERATIONAL THINGS THAT WE HAVE TO IMPROVE, BUT THEY'LL ALSO HAVE TO BE BEHAVIORAL THINGS THAT WE'LL HAVE TO STAY FOCUSED ON AS WELL BECAUSE A PROPPED OPEN DOOR DOESN'T HELP YOU.

ALL OF THESE DIFFERENT THINGS WILL BE CONTINUED TO BE PUSHED.

[02:00:04]

RIGHT NOW, WE DO HAVE SECURITY AUDITS THAT WE'RE DOING ON A CONSISTENT BASIS.

WE PROVIDE SCHOOLS CONSISTENT FEEDBACK THAT MIGHT NOT DO AS WELL ON THOSE SECURITY AUDITS IN REFERENCE TO WHAT WE EXPECT.

WE'LL CONTINUE ALL OF THIS WORK THAT WE HAVE BEEN DOING TO ENSURE THAT WE PROVIDE THE SAFEST ENVIRONMENT POSSIBLE.

>> OKAY. THANK YOU VERY MUCH.

>> SURE.

>> OKAY. CONTINUING ON MY QUESTIONS ON PAGE 43, I'M CURIOUS WHAT HOW THIS COMPARES TO PREVIOUS YEARS IN TERMS OF APPROPRIATION INCREASES AND DECREASES.

LIKE WE'RE OBVIOUSLY DECREASING QUITE A BIT MORE, I THINK, THAN OTHER YEARS.

I'M JUST CURIOUS WHAT THAT PERHAPS LOOKS LIKE.

>> SURE, CHIEF READ.

I DON'T KNOW IF YOU KNOW HOW TO TAP YOUR HEAD?

>> NO, I DON'T.

>> OKAY. [LAUGHTER]

>> YOU DON'T HAVE YOUR MEMORIES [OVERLAPPING].

>> SIXTY MANY DOLLARS IS DEFINITELY ONE OF THE LARGEST CENTRAL OFFICE CUTS WE'VE HAD IN HISTORY.

>> YEAH. IF WE COULD SEE THAT NO BORDER FOR OIL OR SOMETHING THAT WOULD BE REALLY HELPFUL.

BUT GLAD TO SEE THAT WE'RE MAKING STEPS TOWARDS THOSE NEEDED CUTS.

ON THE LAST COUPLE OF SLIDES, 50 AND 51, I REALLY DO APPRECIATE THIS EXPLANATION AND HELPING US UNDERSTAND WHERE THE DISTRICT IS HEADED AND SOME OF THE STEPS THAT ARE GOING TO BE TAKEN IN THE NEAR FUTURE AND DEFINITELY WANT TO ECHO WHAT I HEARD ONE OF MY COLLEAGUES SAY IN TERMS OF A TIMELINE AND A LITTLE MORE DETAIL ON THAT, I THINK WOULD ALL GIVE US SOME PEACE OF MIND.

WE WANT TO REALLY BE FISCALLY RESPONSIBLE AS WE THINK ABOUT THIS LONG-TERM DEFICIT.

ALSO WANT TO ECHO WHAT I HEARD SOME OF MY COLLEAGUES SAY IN TERMS OF ALIGNMENT TO BOARD GOALS, AND YOU PROBABLY HAVE HEARD ME ASK THAT AT EVERY SINGLE WORKSHOP.

>> I HAVE HEARD A FEW TIMES [LAUGHTER]

>> WOULD DEFINITELY LIKE TO SEE HOW WE GOT TO THIS BUDGET AND I HEARD YOU SAY THAT IT WAS A PRIORITY AS YOU CREATED THIS BUDGET, AND JUST THINKING ABOUT ALSO REALLY WANT TO SEE THAT AS A PRIORITY IN THOSE STRATEGIES THAT WERE LISTED OUT IN PAGE 50 AND 51.

I THINK THAT IS CRITICAL FOR OUR BOARD TO BE ABLE TO SEE AND UNDERSTAND THAT EVEN IF YOU'RE TELLING US AND YOU'RE WORKING ON THAT, HAVING EVIDENCE OF THAT TO US, WE'D REALLY HELPED US.

>> WE CAN DO THAT.

>> IF YOU CAN HELP US UNDERSTAND, SO TRUSTEES, THIS IS THE LAST BUDGET WORKSHOP.

[NOISE] IF YOU CAN JUST HELP US UNDERSTAND AND KNOW THERE'S A DATE, AND I THINK IT'S TOMORROW, THAT OUR BUDGET OR ANNOUNCEMENT GETS PUBLISHED ON THE CHRONICLE.

WHAT CAN AND CANNOT CHANGE AFTER THAT DATE?

>> SURE. IT'S SOMETHING THAT CHIEF READ AND I HAVE TALKED ABOUT A FEW TIMES.

CHIEF READ YET, IT'S DIFFERENT IN DIFFERENT STATES SO I HAD TO UNDERSTAND A LITTLE BIT MORE ABOUT OUR PROCESS.

BUT CHIEF READ, IF YOU'D SHARE SOME INSIGHT AND REFERENCE TO WHERE WE ARE CURRENTLY AND WHAT DATES THAT WE HAD TO NOTIFY, OF COURSE, LIKE THE CHRONICLE AND ANY OTHER PIECES THAT ALIGNED WITH THIS I'D APPRECIATE IT.

>> SURE. YOU'RE CORRECT. THE NOTICE OF PUBLIC HEARING AND TAX RATE GOES INTO THE CLINICAL TOMORROW.

WE HAD TO GET IT APPROVED THIS WEEK FOR THAT.

WE CAN'T POST IT ANY EARLIER THAN 10 DAYS BEFORE THE BOARD MEETING.

THAT'S WHY TOMORROW IS THE DATE TO MAKE SURE WE MEET THAT CRITERIA.

BUT THE PUBLIC HEARING IS ON THE REGULAR BOARD MEETING DAY OF JUNE 9TH, AND IT'S AT 4:00 PM.

IT IS BEFORE THE REGULAR MEETING.

BUT ONCE WE'VE POSTED THAT, WE CAN'T CHANGE PROPOSED TAX RATES, WE'RE ALSO REQUIRED TO POST A RECOMMENDED BUDGET BY FUNCTION WHICH HAS A PRESCRIBED SCHEDULE THAT COMBINES GENERAL FUND, NUTRITION SERVICES AND DEBT SERVICE.

WE CAN'T MAKE CHANGES TO ANY KIND OF FUNCTIONS OR CHANGE THOSE BUDGETS BETWEEN NOW AND THAT MEETING.

IF THERE WERE GOING TO BE CHANGES THAT HAD TO BE AMENDMENTS AT THE TABLE.

AT THIS TIME, THE BUDGET IS PRETTY MUCH FROZEN UNTIL JUNE 9TH.

>> THANK YOU FOR THAT EXPLANATION.

YOU SAID 4:00 PM AS THE PUBLIC HEARING, BUT WE ACTUALLY DON'T VOTE ON IT UNTIL LIKE THE 5:00 PM MEETING, CORRECT?

>> THAT'S CORRECT.

>> OKAY. JUST WANTED TO MAKE SURE WE'RE ALL ON THE SAME PAGE. I'VE DONE THIS TWICE.

THERE'S A COUPLE OF NEW TRUSTEES AND IT'S BEEN A TEDIOUS PROCESS SO THANK YOU, AND THANK YOU FOR THE PRESENTATION AND FOR THE HARD WORK OF BOTH THE ADMINISTRATION AND THANK YOU TO MY COLLEAGUES.

I KNOW WE'VE HAD LOTS OF LONG MEETINGS THAT REALLY APPRECIATE EVERYONE'S QUESTIONS AND INSIGHT AS WE'VE GONE THROUGH THIS PROCESS.

[02:05:04]

>> IT GOES BOTH WAYS.

THE ADMINISTRATION APPRECIATES YOUR COMMITMENT TO CHILDREN.

EVERYBODY HAS PUSHED AND WE DO KNOW THAT PUSHES FOR THE DISTRICT AS A WHOLE AND FOR STUDENTS.

WE LOOK FORWARD TO GETTING TO JUNE AND IN GETTING EVERYBODY, YES.

>> THE BOARD WILL NOW ADJOURN TO CLOSED SESSION UNDER

[ADJOURN TO CLOSED OR EXECUTIVE SESSION FOR THE PURPOSES LISTED IN THIS NOTICE]

CHAPTER 551 OF TEXAS GOVERNMENT CODE OPEN MEETINGS ACT, SUBSECTIONS 551.004.071.072.073.074.076.082.0821.083.084.089, SHIPBOARD FINAL ACTION VOTER DECISION ON ANY MATTER CONSIDERED IN THE CLOSED SESSION BE REQUIRED.

SUCH VITAL ACTION VOTER DECISION SHALL BE TAKEN AT THE OPEN MEETING COVERED BY THIS NOTICE UPON THE RECOMBINING OF THIS PUBLIC MEETING OR AT A SUBSEQUENT PUBLIC MEETING OF THE BOARD UPON NOTICE THEREOF, THE BOARD IS ADJOURN TO CLOSED SESSION AT 2:07 PM.

[RECONVENE IN OPEN SESSION (IMMEDIATELY FOLLOWING CLOSED SESSION)]

WITH NO FURTHER BUSINESS TO DISCUSS, THIS MEETING OF THE BOARD IS ADJOURNED.

THE TIME IS 3:31 PM ON MAY 26TH, 2022, WINNERS [INAUDIBLE].

* This transcript was compiled from uncorrected Closed Captioning.