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>> WHEN I START THIS [FOREIGN] GOOD AFTERNOON.

[Hearings on June 9, 2022]

[00:00:07]

THIS MEETING IS NOW RECONVENED AT 04:00 PM.

BOARD MEMBERS PRESENT IN THE BOARD AUDITORIUM ARE TRUSTEE ALLEN, TRUSTEE WADE, TRUSTEE GUIDRY, TRUSTEE SANTOS, TRUSTEE CRUZ, TRUSTEE BLUEFORD-DANIELS, TRUSTEE DEIGAARD, TRUSTEE BAKER, AND TRUSTEE HERNANDEZ.

I WOULD LIKE EVERYONE TO PLEASE SILENCE ALL CELL PHONES.

WE ARE POSTED TO CONDUCT A PUBLIC HEARING ON THE RECOMMENDED 2022, 2023 DISTRICT BUDGET FOR THE HOUSTON INDEPENDENT SCHOOL DISTRICT.

WE WILL BEGIN WITH A PRESENTATION FROM THE ADMINISTRATION.

THIS WILL BE FOLLOWED BY INDIVIDUALS WHO HAVE SIGNED UP TO SPEAK.

I WILL NOW TURN IT OVER TO YOU, MR. HOUSE.

>> THANK YOU, MADAM PRESIDENT, AT LIKE TO TURN IT OVER TO OF COURSE, OUR CHIEF FINANCIAL OFFICER, CHIEF GLENN REED AT THIS TIME TO GET US STARTED. CHIEF REED.

>> HEARING ON THE PROPOSED BUDGET AND THE TAX RATE.

IT INCORPORATES A LOT OF WHAT WE'VE DISCUSSED OVER THE PAST SEVERAL BUDGET WORKSHOPS.

THE REASON WE'RE REPEATING A LOT OF THIS INFORMATION, OF COURSE, IS THAT ALL INTERESTED MEMBERS OF THE PUBLIC MAY NOT HAVE WATCHED ALL THE WORKSHOPS.

THE PUBLIC HEARING IS THE ONE THAT WE POST IN THE PAPER LETTING FOLKS KNOW THAT WE'RE HAVING THIS HEARING.

WE'RE REALLY PRESENTING THAT INFORMATION AS A PUBLIC KETCHUP IN SOME WAYS.

WE'RE GOING TO DO THIS AGAIN, AREN'T WE? THERE WE GO.

THINGS WE ARE GOING TO TALK ABOUT TODAY ARE THE PROPERTY VALUES, OUR REVENUE ASSUMPTIONS, FUND BALANCE.

WE'RE GOING TO HAVE LONG-TERM FISCAL SUSTAINABILITY, WHICH WE'RE GOING TO TALK ABOUT REALLY MORE IN THE REGULAR BUDGET MEETING.

THEN BUDGETS FOR OUR OTHER FUNDS, DEBT SERVICE FUND AND NUTRITION SERVICES FUND.

BACK IN MAY, WE RECEIVED OUR VALUES FROM THE HARRIS COUNTY APPRAISAL DISTRICT.

THIS IS INCORPORATING THE CHANGE IN THE LOCAL OPTIONAL HOMESTEAD EXEMPTION.

CURRENTLY, HOMEOWNERS RECEIVE $25,000 IN HOMESTEAD EXEMPTION.

BACK IN MAY, VOTERS APPROVED IT, CHANGING TO 40,000.

THIS DOES INCORPORATE ADDITIONAL EXEMPTION FOR HOMEOWNERS.

EVEN THOUGH THERE WAS A REDUCTION IN THE HOMESTEAD EXEMPTION, AS YOU CAN SEE, THE DISTRICTS STILL HAD AN INCREASE OF ABOUT 15 BILLION IN ACTUAL PROPERTY VALUES OR ABOUT 7.6 PERCENT.

EVEN THOUGH THE VALUES INCREASE IN THE DISTRICT, SCHOOL DISTRICTS DON'T BENEFIT FROM THIS IN THE GENERAL FUND.

WE SIMPLY SEND THOSE DOLLARS BACK TO THE STATE FOR ANYTHING OVER WHAT WE'RE ENTITLED TO KEEP BASED OFF OF OUR STUDENT ATTENDANCE.

WE DO KEEP GROWTH THAT HAPPENS THAT WE COLLECT THOUGH FOR PAYING BACK OUR DEBT.

WE'RE NOT IMPACTED BY THAT.

ON THIS SLIDE, WE'RE TALKING ABOUT REALLY THE AVERAGE MARKET VALUES AND TAXABLE VALUES OF RESIDENCES.

THE AVERAGE MARKET VALUE YOU SEE IS INCREASED ABOUT $40,000.

THEN THE TAXABLE VALUE, OF COURSE, IS INCREASED ABOUT JUST UNDER $18,000.

THIS OF COURSE, DOES TAKE INTO ACCOUNT THE NEW $40,000 HOMESTEAD EXEMPTION, AS WELL AS THE 20 PERCENT OPTIONAL HOMESTEAD EXEMPTION THAT HISD OFFERS HOMEOWNERS.

THIS JUST SHOWS A HISTORY OF THE PAST 10 YEARS OF PROPERTY VALUES.

IT'S INTERESTING THAT IN THE PAST DECADE PROPERTY VALUES AND HISD HAVE ALMOST DOUBLED IN VALUE.

BUT OF COURSE, THE WAY THAT THE STATE FUNDS SCHOOL DISTRICTS, HISD'S NET REVENUES THAT MEANS WHAT WE GET TO KEEP OUT OF REVENUES BECAUSE WE PAID RECAPTURE HAS NOT INCREASED AT NEARLY THE SAME RATE AS THE VALUES HAVE INCREASED.

ONE THING I WANTED TO ALSO TALK A LITTLE BIT ABOUT IS OUR ENROLLMENT.

ONE OF THE THINGS THAT ENROLLMENT DOES, OF COURSE, IT DRIVES OUR REVENUES.

THAT IS THE BIGGEST DRIVER OF A DISTRICT'S REVENUES IS ENROLLMENT AND ATTENDANCE.

AS YOU CAN SEE HERE, OUR ENROLLMENT STARTED DECLINING ABOUT '16, '17 WHEN WE HAD 215,000 STUDENTS.

THEN OF COURSE HAS CONTINUED TO DECLINE, ESPECIALLY THROUGH COVID WHERE WE LOST ANOTHER 10,000 STUDENTS.

2021, OF COURSE, WAS REALLY OUR FIRST YEAR BACK FACE-TO-FACE.

[00:05:06]

THEN OF COURSE THIS YEAR '21, '22 WE ARE BACK FACE-TO-FACE, MORE STUDENTS FACE-TO-FACE, WE STILL HAD A SLIGHT DECLINE OF 1.2 PERCENT.

BUT NEXT YEAR, WE'RE BASICALLY PROJECTING A FAIRLY FLAT INCREASE IN ENROLLMENT.

THESE ARE THE ASSUMPTIONS, THE ENROLLMENT, WE'RE PROJECTING THE 194 THAT YOU SAW PREVIOUSLY.

THE AVERAGE DAILY ATTENDANCE, WE EXPECT ABOUT 173,000.

THAT MEANS THAT THERE'S 173,000 STUDENTS THAT WILL BE IN ATTENDANCE ON AVERAGE DAY.

NOW THAT TAKES INTO ACCOUNT STUDENTS THAT WERE DIS-ENROLLED THROUGHOUT THE YEAR.

NOT EVERY STUDENT IS HERE ALL 174 DAYS OF OUR INSTRUCTIONAL YEAR.

THE 173,000 IS WHAT WE EXPECT ON THE AVERAGE ON THAT ENROLLMENT.

PROPERTY TAXES, AGAIN ON $217 BILLION IN VALUE.

WE'RE EXPECTING ABOUT A 97 PERCENT COLLECTION RATE.

VALUES ARE ASSESSED BASED ON JANUARY.

THE VALUE NOTICE THAT YOU RECEIVE THIS SPRING ARE BASED ON THE VALUES AS THEY WERE ON JANUARY OF 2022.

TO TALK A LITTLE BIT ABOUT THE DISTRICT'S TAX RATES.

THERE ARE TWO COMPONENTS OF THE DISTRICT TAX RATE.

THERE'S THE MAINTENANCE AND OPERATIONS TAX RATE AND THE INS OR SINKING TAX RATE WHICH PAYS FOR THE DISTRICT'S DEBT.

THE MAINTENANCE AND OPERATIONS TAX RATE, WHEN HB3 WAS IMPLEMENTED, AS PROPERTY VALUES GROW, THE TAX RATE GETS LOWERED.

THAT'S TO HELP MITIGATE SOME OF THE FAST PROPERTY GROWTH AND TAXES PAID BY TAXPAYERS.

YOU SEE HERE THAT WE'RE EXPECTING IN '22, '23 FOR OUR TAX RATE TO BE 89.52 CENTS.

IT WAS 92.77 CENTS.

IT'S ACTUALLY GOING TO GO DOWN.

WE WILL NOT KNOW OUR FINAL RATE UNTIL THIS SUMMER WHENEVER THE HARRIS COUNTY APPRAISAL DISTRICT GIVES US OUR VALUES IN JULY.

INTEREST AND SINKING TAX RATE WILL BE THE SAME, 16.67 CENTS, BUT THE TOTAL TAX RATE, WE'RE EXPECTING IT TO GO DOWN BY ABOUT 3.25 CENTS COMPARED TO LAST YEAR.

THE TAX RATE ITSELF WILL DECLINE.

I TALKED A LITTLE BIT ABOUT THE GENERAL FUND BUDGET.

WE'LL TALK ABOUT THE REVENUES AND THE APPROPRIATIONS AND THE BUDGET.

FIRST, LET'S TALK A LITTLE BIT ABOUT THE REVENUES.

OF COURSE, AS YOU CAN SEE, THE LARGEST SOURCE OF OUR REVENUES IS THE LOCAL SOURCES.

THAT IS PRIMARILY PROPERTY TAXES THAT TAXPAYERS PAY THE DISTRICT, OF COURSE, DOES INCLUDE THE CHANGE IN THE HOMESTEAD EXEMPTION.

STATE SOURCES ARE INCREASING MAINLY DUE TO AN INCREASE IN OUR PER CAPITA RATE.

OF COURSE, IN HB3, THOSE REVENUES ARE PART OF OUR RECAPTURE.

THE MORE WE COLLECT ENDS IN PER CAPITA RATE, WE JUST SEND MORE BACK IN RECAPTURE.

IT REALLY DOESN'T IMPACT THE DISTRICT. FEDERAL SOURCES.

THIS ONE HAS HAD SIGNIFICANT INCREASE THIS YEAR BECAUSE OF SOME DOLLARS COMING FROM ESSER THROUGH THE INDIRECT COSTS.

DISTRICT COLLECTS ON THE ESSER EXPENDITURES.

THEN OF COURSE, WE HAVE A DECLINE IN OUR OTHER SOURCES BECAUSE OF SOME CAPITAL LEASES THAT WE HAD TO RECOGNIZE, BUT IT HAS AN OFFSETTING APPROPRIATION, SO IT'S A NET-ZERO IMPACT.

I WANT TALK A LITTLE BIT BETTER APPROPRIATIONS.

THE FIRST ONE IS OUR RECAPTURE PAYMENT.

IT'S GONE UP BY 34 MILLION NEXT YEAR.

SALARIES AND BENEFITS.

THERE'S REALLY TWO PIECES HERE.

ONE OF THEM IS FROM SALARIES THAT WERE APPROVED ACTUALLY LAST SUMMER.

THOSE ARE JUST BEING BROUGHT FORWARD.

THOSE ARE ADDITIONAL INCREASES IN '22, '23.

BUT THE DISTRICT'S COMPENSATION PACKAGE THAT YOU ALL HAVE HEARD ABOUT, THE $132 MILLION IS THE COST OF THE PACKAGING AND BENEFITS FOR '22, '23.

IN TOTAL IN THIS BUDGET OVER PRIOR YEAR, WHEN WE TALKED ABOUT THIS LAST JUNE, IS $166 MILLION.

TO HELP PAY FOR THAT, WE HAVE ABOUT $52 MILLION THAT WILL BE TRANSFERRED OUT INTO ESSER FROM SALARIES THAT WILL HELP FUND THE INCREASE IN THE COMPENSATION PACKAGE.

AFTER THE RIGHT HERE, I WANT TO TALK ABOUT THE TWO PIECES.

WE TALKED ABOUT THE FEDERAL REVENUES FROM INDIRECT COSTS, WHAT I JUST TALKED ABOUT, TRANSFER OF SALARIES OUT TO ESSER.

THOSE ARE TEMPORARY DOLLARS.

TEMPORARY FUNDS IN THIS BUDGET, IF YOU LOOK ON THE RIGHT-HAND SIDE, THEY'RE ABOUT $102 MILLION IN FUNDS THAT ARE NOT RECURRING DOLLARS.

[00:10:04]

JUST A COUPLE OF OTHER ITEMS ON THIS PAGE, WE HAVE A LARGE INCREASE IN OUR PERFORMANCE CONTRACT SCHOOLS.

THAT IS REALLY FROM A GROWTH AND ENROLLMENT FROM OUR VIRTUAL CONNECTIONS ACADEMY.

THEN OUR DECREASES, WE'VE GOT A COUPLE OF MAJOR ONES.

I MENTIONED THAT CAPITAL LEASE RECOGNITION THAT HAD AN OFFSETTING REVENUE.

IT'S NO IMPACT TO THE BUDGET.

THEN OF COURSE, WE DID MAKE $60 MILLION IN DEPARTMENT CUTS FOR THE '22, '23 SCHOOL YEAR.

WITH THE INCREASES AND THE DECREASES THAT ARE IN THIS BUDGET, THE DEFICIT IS $100 MILLION.

RIGHT NOW WE EXPECT ABOUT $70 MILLION IN UNSPENT DOLLARS WHICH PRIMARILY COMES FROM SALARIES, FROM VACANCIES, PEOPLE COMING IN AND OUT OF POSITIONS, AND THEN, OF COURSE, SOME OTHER NON-SALARY DOLLARS THROUGHOUT THE DISTRICT.

WE EXPECT RIGHT NOW A DEFICIT OF ABOUT $30 MILLION AS WE END 22-23.

AS I TALKED A LITTLE BIT, A COUPLE OF SLIDES EARLIER, I TALKED ABOUT THE USE OF SOME ONE-TIME FUNDS.

I'M NOT GOING TO GO THROUGH EVERY LINE HERE, BUT WHAT WE WANT TO SHOW IS, IF WE TOOK OUT THOSE ONE-TIME DOLLARS, THE $50 MILLION FROM INDIRECT COST, THE $52 MILLION IN SALARIES THAT WE'RE TRANSFERRING INTO ESSER, THEN OUR OPERATING DEFICIT WOULD REALLY BE A $133 MILLION, RIGHT THERE IN THE MIDDLE OF THE PAGE.

BUT OF COURSE, WE ARE USING SOME INDIRECT COSTS.

WE ARE USING FEDERAL FUNDS TO SUPPORT THE COMPENSATION PLAN.

THAT'S HOW WE GET TO THE $31 MILLION SO IT'S JUST A LITTLE BIT DIFFERENT LOOK AT HOW WE GET TO THOSE NUMBERS.

YOU ALL SEEN THIS SLIDE AS WELL, BUT WANT TO REVISIT HOW FUND BALANCE HAS CHANGED OVER THE PAST SEVERAL FISCAL YEARS.

SOME OF THOSE DRIVERS, OF COURSE, HAVE BEEN SOME ONE-TIME DOLLARS, 18-19, WE HAD A BIG INCREASE, $133 MILLION THAT CAME FROM THE STATE THAT WAS RELATED TO HURRICANE HARVEY.

NO STRINGS ATTACHED.

IT WAS $133 MILLION REALLY FOR UNEXPECTED DECLINES IN PROPERTY VALUES.

THEN BACK AT THAT TIME, IF WE HAD AN INCREASE IN THE PER CAPITA RATE, WE ACTUALLY KEPT THOSE DOLLARS.

WE DON'T KEEP THOSE ANY LONGER.

THEN WE ALSO DID SOME HIRING FREEZES BACK THEN.

THEN OF COURSE, 19-20 AND 20-21, WE DID PUT A LOT OF COST-SAVINGS THINGS IN PLACE TO TRY TO SAVE DOLLARS.

AT THAT TIME, WE DIDN'T KNOW WE WERE GOING TO HAVE S02, S03 COMING SO WE INTENTIONALLY SAVED SOME DOLLARS FOR COSTS.

OVER THE PAST, SINCE 18-19, FUND BALANCE HAS GROWN ABOUT $300 MILLION.

THIS SLIDE BREAKS DOWN THE DISTRICT'S FUND BALANCE, LEFT-HAND SIDE IS JUST THE TOTAL NUMBER.

THAT'S THE LARGE NUMBER, $987 MILLION.

IT'S IN OUR FUND BALANCE WHEN WE BEGAN THIS FISCAL YEAR.

BUT ON THE RIGHT-HAND SIDE, WE'RE BREAKING THAT DOWN FOR YOU A LITTLE BIT.

WE HAVE THE $466 MILLION ON THE BOTTOM, THAT IS BOARD POLICY, IT'S SET ASIDE.

IT'S A THREE-MONTH OPERATING RESERVE THAT WE HAVE SET ASIDE TO PAY BILLS, TO PAY SALARIES, TO GET US UNTIL WE START COLLECTING PROPERTY TAXES IN DECEMBER.

THE MIDDLE SECTION, THE $306 MILLION, IT'S NON SPENDABLE DOLLARS.

IT'S COMMITTED DOLLARS FOR THE BOARDS RESERVE FOR OPERATIONS.

IT ALSO INCLUDES SOME CARRY-OVER.

WHAT'S LEFTOVER? AVAILABLE FUND BALANCE.

THESE ARE DOLLARS THAT THE DISTRICT HAS THAT ARE NOT COMMITTED TO ANYTHING, THAT AREN'T SET ASIDE BY BOARD POLICY, THAT THE DISTRICT HAS ACCESS TO.

WE MOVE INTO LOOKING AT THIS CURRENT FISCAL YEAR GOING INTO WHAT 22-23 LOOKS LIKE.

THEN WE HAVE AS YOU SEE, THE 224, THAT'S WHAT WE STARTED WITH, THAT'S WHAT WE SHOWED YOU ON THE PREVIOUS SLIDE.

WE EXPECT TO ADD ABOUT $90 MILLION THIS YEAR.

BUT THE 22-23 BUDGET IS GOING UP, [NOISE] WHICH MEANS THAT THE RESERVE THAT WE HAVE TO SET ASIDE GOES UP.

[NOISE] WE EXPECT THAT AS WE GO INTO 22-23, THAT WE HAVE $293 MILLION STILL AVAILABLE FOR US TO BE ABLE TO USE TO ADDRESS DEFICITS OR ADDRESS OTHER THINGS AND OTHER COSTS IN THE DISTRICT.

WE EXPECT AT THE END OF 22-23,

[00:15:03]

IF WE'RE USING $31 MILLION OF FUND BALANCE AND THEN ALSO AN ADJUSTMENT TO THAT BOARD RESERVE, THAT WE WILL START NEXT YEAR WITH ABOUT 243.

WE EXPECT IT TO, OF COURSE, GO DOWN.

LET'S TALK A LITTLE BIT ABOUT THE DEBT SERVICE FUND.

[NOISE] THIS IS THE FUND THAT PAYS BACK THE DISTRICT'S PRINCIPAL ON INTEREST ON OUR GENERAL DEBT.

THE MAIN SOURCE IS PROPERTY TAXES, JUST LIKE OUR GENERAL FUND.

THE TAX RATE IS THE 16.67, THAT RATE IS NOT CHANGING.

CURRENTLY, WE HAVE GREAT BOND RATINGS, THE HIGHEST POSSIBLE IN MOODY'S, AND THEN OUR CURRENT TOTAL OUTSTANDING DEBT IS ABOUT $2.1 BILLION.

[NOISE] THIS FUND HAS ABOUT $352 MILLION IN REVENUES.

OF COURSE YOU CAN SEE THE MAJORITY OF THAT IS OUR PROPERTY TAXES, 346, EXPENDITURES ARE $374 MILLION SO THIS HAS A BALANCED BUDGET.

THE NEXT FUND TO TALK ABOUT A LITTLE BIT ABOUT IS OUR NUTRITION SERVICES FUND.

THIS FUND IS WHAT PAYS FOR ACCOUNTS FOR OUR CHILD NUTRITION PROGRAM.

OF COURSE, THIS IS A FEDERAL PROGRAM SO THE MAJORITY OF THE REVENUES COME FROM THE FEDERAL REIMBURSEMENT IN OUR USDA COMMODITIES.

IT'S MANAGED THROUGH THE TEXAS DEPARTMENT OF AGRICULTURE AND IT'S AMAZING THAT TEAM SERVES OVER 36 MILLION MEALS A YEAR.

IT'S AN INCREDIBLE NUMBER.

THE MAJORITY OF OUR CAMPUSES, ALL THE MEALS ARE SERVED AT NO CHARGE THROUGH THE USDA'S COMMUNITY OF ELIGIBILITY PROGRAM WHICH IS GREAT FOR THE DISTRICT.

OF COURSE, IT DOES INCLUDE REIMBURSEMENT FOR OTHER PROGRAMS THAT THEY HAVE THE DINNER OR SUMMER FEEDING.

AS YOU CAN SEE ON THIS ONE, TOTAL REVENUE IS $133 MILLION.

OF COURSE, 129 OF THAT 133 IS FEDERAL SO THAT'S WHY I SAID IT'S A FEDERAL PROGRAM.

EXPENDITURE IS ABOUT A $125 MILLION.

RIGHT NOW THEY EXPECT TO HAVE ABOUT SEVEN MILLION DOLLARS IN NET INCOME IN THE NUTRITION SERVICES FUND.

OF COURSE, THESE ARE OUR STRATEGIC PILLARS OF THE DISTRICT.

MORE INFORMATION YOU CAN FIND AT DIGITAL WEBSITE, HOUSTONISD.ORG.

TOP OF THE PAGE HAS A LINK TO THE STRATEGIC PLAN.

THAT CONCLUDES THE PRESENTATION AND I'LL PASS IT BACK TO PRESIDENT CRUZ.

>> THANK YOU, CHIEF REED. WE HAVE EIGHT REGISTERED SPEAKERS FOR THE PUBLIC HEARING.

EACH SPEAKER IS LIMITED TO ONE MINUTE PER BOARD POLICY DUE TO THE LARGE NUMBER [NOISE] OF SPEAKERS FOR OUR MEETING THIS EVENING.

THE CLOCK ON THE WALL ON YOUR RIGHT WILL COUNT DOWN YOUR TIME AND WILL SIGNAL WHEN YOUR TIME IS UP.

WE ASK THAT SPEAKERS STAY ON TOPIC AND REFRAIN 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 AS THIS 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 WHILE THEY PRESENT TO THE BOARD DURING THIS PORTION OF THE MEETING AND TO PROMPTLY END THEIR REMARKS WHEN THE TIMER RINGS, INDICATING THE EXPIRATION 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.

WE WILL BEGIN WITH THE SPEAKERS WHO ARE REGISTERED TO ADDRESS THE BOARD VIA ZOOM.

PLEASE REMEMBER THAT IF YOU ARE SIGNED UP TO SPEAK VIA ZOOM, WE MUST SEE YOU LIVE WITH YOUR CAMERA ON AS YOU SPEAK.

FOR THOSE ZOOM SPEAKERS WHO ARE WATCHING THE MEETING LIVE ON ANOTHER DEVICE, PLEASE MUTE THE MEETING AUDIO WHEN IT IS YOUR TIME TO SPEAK TO AVOID AUDIO INTERFERENCE, TURN ON YOUR CAMERAS AND BEGIN SPEAKING.

MISS. TRIN, PLEASE IDENTIFY AND ADMIT OUR SPEAKERS.

>> MR. MONROE, PLEASE TURN ON YOUR CAMERA.

YOU HAVE ONE MINUTE AND YOU MAY BEGIN.

[BACKGROUND] MR. MONROE, PLEASE TURN ON YOUR CAMERA.

YOU HAVE ONE MINUTE AND YOU MAY BEGIN.

>> CAN YOU HEAR ME?

>> YES.

>> YES, YOU MAY BEGIN.

[00:20:01]

>> I DON'T SEE NOTHING IN THE PLAN THAT DEALS WITH SAFETY.

WHEN YOU LOVE SOMETHING, YOU PROTECT IT.

WHEN YOU DON'T LOVE SOMETHING, YOU DON'T PROTECT IT.

I DON'T SEE NOTHING IN THE PLAN THAT DEALS WITH SAFETY.

WHEN YOU LOVE SOMETHING, YOU PROTECT IT.

THERE'S NOTHING IN YOUR PLAN THAT SHOWS THAT YOU LOVE THESE STUDENTS OR THESE TEACHERS.

MONEY IS THE ROOT OF ALL EVIL.

BUT WHEN YOU LOVE SOMETHING, YOU PROTECT IT.

YOU'RE NOT PROTECTING THEM.

YOU HAVE NO IDEOLOGIES ON HOW TO DO IT.

BUT IF YOU LOVE SOMETHING, YOU PROTECT IT.

FIND SOME LOVE BECAUSE IF NOT, THERE'S A SPECIAL PLACE IN HELL FOR EVERY ONE OF YOU THAT DON'T.

[APPLAUSE]

>> PLEASE REFRAIN FROM CLAPPING DURING THE BOARD MEETING, YOU CAN SHOW YOUR SUPPORT WITH HANDS IN THE AIR THING.

>> MR. CAPOL, PLEASE TURN ON YOUR CAMERA.

YOU HAVE ONE MINUTE AND YOU MAY BEGIN. MR. CAPO, YOU HAVE ONE MINUTE.

PLEASE TURN ON YOUR CAMERA AND YOU MAY BEGIN.

>> WE CAN'T HEAR YOU.

>> MR. CAPO, PLEASE UNMUTE.

>> THANK YOU, LADIES AND GENTLEMEN, OF THE BOARD.

MADAM PRESIDENT, THANK YOU FOR HOLDING THIS MEETING ON THIS PUBLIC HEARING TODAY ON THE BUDGET.

AS A HOMEOWNER IN THE AREA, I URGE YOU TO PASS THE BUDGET AS PRESENTED BY THE ADMINISTRATION.

WE'VE WORKED SOME TIME TO GET TO A PLACE WHERE OUR COMPENSATION LEVELS WERE COMPETITIVE WITHIN THE REGIONAL AREA.

I'M PROUD OF THE WORK THAT'S BEEN DONE IN COLLABORATION WITH EMPLOYEES IN THE ADMINISTRATION TO GET US THIS FAR AND WE URGE YOU TO BRING IT OVER THE LINE AND GET THIS BUDGET PASSED.

WE WILL CONTINUE TO WORK TOGETHER AND SUPPORT LOCAL CONTROL FOR HISD.

WE URGE EACH OF YOU TO PLEASE MOVE FORWARD ON THIS BUDGET.

WE LOOK FORWARD TO TALKING WITH YOU AT CONCLUSION OF THE BOARD MEETING.

>> MADAM PRESIDENT, THOSE ARE ALL THE SPEAKERS FOR THIS SECTION, THE FOUR O'CLOCK PUBLIC HEARING OF THE MEETING THAT RB ASSUME.

>> THANK YOU, MS. TRIM. NEXT, WE WILL HEAR FROM REGISTERED SPEAKERS APPEARING IN OUR AUDITORIUM.

WILL ANNA VIRAMONTES SHUTA, PLEASE COME TO THE PODIUM.

AS I CALL THE NEXT THREE NAMES, PLEASE TAKE A SEAT ON THE FRONT ROW.

SARAH HALL, RUTH KRAVITZ, SOPHIA CASTILLO, ANNA VIRAMONTES SHUTA, SARAH HALL.

>> GOOD. CAN I BEGIN? I STAND BEFORE YOU TODAY AS ONE OF THE ONLY NATIONALLY BOARD CERTIFIED TEACHERS IN HOUSTON ISD.

YESTERDAY, I COMPLETED MY 15TH YEAR IN THE FIELD OF EDUCATION.

AS A BOARD, YOU'VE MADE A COMMITMENT TO CULTIVATE AND RETAIN TALENT LIKE MINE.

I AGREE WITH THE STATEMENT BY THIS BOARD, THE HISD MUST BE COMPETITIVE TO REACH THAT GOAL.

AS IT STANDS NOW, WE'RE NOT.

WHILE THERE ARE NUMEROUS FACTORS THAT MAY INFLUENCE DECISIONS ON WHERE TO WORK, A COMPETITIVE SALARY, IT'S QUITE QUESTIONABLY AT THE TOP.

IN REFERENCE TO QUESTIONS POSED IN PREVIOUS MEETINGS ABOUT IMPACT ON STUDENT OUTCOMES, I AM HAPPY TO INFORM YOU THAT RESEARCH SHOWS A CONSISTENT PATTERN.

THAT MOST IMPORTANT FACTOR TO IMPROVING STUDENT ACHIEVEMENT IS GOOD TEACHERS.

IF YOU ARE IN FACT COMMITTED TO IMPROVING STUDENT OUTCOMES BY CULTIVATING WORLD-CLASS TALENT, THEN YOU MUST FIRST ATTRACT THAT TALENT AND KEEP US HERE.

I WANT TO END THIS BY THANKING THOSE OF YOU WHO WILL HONOR YOUR COMMITMENTS TO THE COMMUNITY AND VOTE YES, TO THE PROPOSED BUDGET. THANK YOU.

>> RUTH KRAVITZ, SOPHIA CASTILLO, ANN FIRST.

>> THANK YOU SO MUCH FOR APPROVING COMPETITIVE SALARIES FOR TEACHERS AND FOR THE BIGGEST RAISES FOR BUS DRIVERS, CUSTODIANS, FOOD SERVICES, AND OTHERS IN A GENERATION.

THANK YOU VERY MUCH.

BUT I'M A LITTLE CONCERNED.

LAST WEEK, PRINCIPALS WERE REASSIGNED AND TOLD IT WAS BECAUSE THEIR DISTRICT ASSESSMENTS WERE TOO LOW.

[00:25:02]

WITH SO MUCH LEARNING LOSS FROM COVID, HOW IS THIS A GOOD IDEA? AT HIGHLAND HEIGHTS, PATRICK HENRY, AND WHEATLEY, EVERY SINGLE TEACHER WAS ASKED TO REAPPLY AND PRINCIPALS WERE REPLACED.

BETWEEN TEACHERS ASKED TO LEAVE AND TEACHERS WHO RESIGNED ON THEIR OWN, 75 PERCENT OF THE TEACHERS WILL BE NEW NEXT YEAR.

STUDENTS ARE FEELING LIKE THEY'RE DISCARDED.

AT PATRICK HENRY, MOM SAID TO ME, "WHY ARE YOU DOING THIS? MY KID WILL RETURN TO A SCHOOL FULL OF STRANGERS.

HOW IS THAT A GOOD IDEA?" TEN YEARS AGO AND OVER AND OVER AGAIN, NOT DUE TO THIS BOARD, THIS HAS BEEN A HARMFUL PATTERN.

SOME SCHOOLS HAVE HAD NINE PRINCIPALS IN 10 YEARS.

HOW IS THAT A GOOD IDEA? WE KNOW WE SHOULD BE FIGHTING POVERTY AND NOT CHASING.

[NOISE]

>> SOPHIA CASTILLO, ANN FIRST.

>> MY NAME IS SOPHIA CASTILLO AND I JUST COMPLETED MY 24TH YEAR TEACHING.

I WAS TEACHER OF THE YEAR AT WASHINGTON HIGH SCHOOL IN 2015 AND TEACHER OF THE YEAR AT HEIGHTS HIGH SCHOOL IN 2020 AND THIS IS THE YEAR I CAN RETIRE.

I, ALONG WITH MANY COLLEAGUES, WORKED TIRELESSLY EVERY SINGLE DAY, DURING THE WEEK, ON THE WEEKENDS, AND AT NIGHT.

I COMMEND SUPERINTENDENT HOUSE FOR PUTTING FORTH A COMPETITIVE SALARY PLAN FOR TEACHERS AND STAFF.

TO SUGGEST ANY OTHER OPTIONS SUCH AS MERIT PAY IS TO SUGGEST THAT I AM NOT ALREADY GIVING IT AT ALL FOR MY STUDENTS EVERY SINGLE DAY.

RIGHT NOW THERE ARE 865 POSITIONS POSTED FOR CERTIFIED TEACHERS IN HISD.

MARGARET LONG WISDOM HAS 27 POSITIONS POSTED, WHEATLEY HAS 26, AND THE LIST GOES ON.

TO ATTRACT TEACHERS TO THESE SCHOOLS, AS WELL AS KEEPING.

>> ANN FIRST.

>> MY NAME IS ANN FIRST, DISTRICT 5.

I WANT TO THANK YOU FOR UNDERSTANDING THAT TO ATTRACT AND RETAIN GREAT TEACHERS AND STAFF, WE NEED TO OFFER COMPETITIVE SALARIES.

I ALSO THANK YOU FOR RECOGNIZING THAT SCHOOL LIBRARIES HELP STUDENTS READ AND SUCCEED, AND HELP TEACHERS DO THEIR JOBS.

FOR THE PAST 20 YEARS, HISD HAS NEGLECTED ITS LIBRARY SYSTEM, CLOSING 95 SCHOOL LIBRARIES, MOST IN UNDERSERVED AREAS WHERE KIDS ALREADY HAVE TOO MANY BARRIERS TO SUCCESS.

MORE THAN 200 SCHOOLS LOST THEIR TEACHER LIBRARIANS.

THIS BOARD IS PUTTING STUDENTS FIRST AND RESTORING THESE IMPORTANT MODERN LEARNING CENTERS.

NOW LET'S MAKE SURE OUR LIBRARIES HAVE THE RESOURCES THEY NEED TO HELP IMPROVE STUDENT OUTCOMES, INCLUDING AN ACP PROGRAM.

MANY ORGANIZATIONS AND INDIVIDUAL VOLUNTEERS ARE READY TO SUPPORT YOU, AS YOU REVITALIZE OUR LIBRARIES FOR OUR STUDENTS. THANK YOU.

>> TRUSTEES, WE CAN DISCUSS THE BUDGET AT GREATER LENGTH LATER IN THE AGENDA PORTION OF THE MEETING, BUT I WOULD LIKE TO GIVE AN OPPORTUNITY TO ANY TRUSTEE WHO WOULD LIKE TO TAKE ONE MINUTE TO ASK QUESTIONS OR MAKE COMMENTS AT THIS TIME, PLEASE INDICATE YOUR INTEREST IN THE QUEUE. TRUSTEE DEIGAARD.

>> WHAT IS OUR RECAPTURE PAYMENT?

>> CHIEF REED. [INAUDIBLE]

>> SORRY, PAGE 9.

YOU'VE GOT THE INCREASE BUT I'D LIKE TO KNOW WHAT THE FULL RECAPTURE PAYMENT IS, I THINK IT'S IMPORTANT FOR EVERYBODY TO UNDERSTAND.

>> LET ME GET THAT FOR YOU, FOR THE REGULAR MEETING, I'VE GOT IT.

>> I ASKED THIS QUESTION LAST WEEK.

IF ALL APPROPRIATIONS AND ALL REVENUES WERE TO STAY THE SAME WHEN ASA RUNS OUT IN TWO YEARS, WHAT WILL THE STRUCTURAL DEFICIT BE?

>> IF WE CONTINUE WITH THE COMPENSATION PLAN, IT WOULD BE JUST UNDER 200 MILLION, AROUND 195, $196 MILLION.

>> IS THAT BEFORE OR AFTER FALLOUT?

>> I'M SORRY, THAT'S AFTER FALLOUT.

>> THANK YOU.

>> ABOUT 250, 260 MILLION.

>> YES.

>> THANK YOU.

>> TRUSTEE BAKER.

>> SUPERINTENDENT, ON PAGE 18.

>> MIC.

>> SUPERINTENDENT ON PAGE 18, THAT CHIEF SPOKE ABOUT A MOMENT AGO, THAT $224 MILLION, COULD THAT BE CONSIDERED A RAINY DAY FUND?

>> SOME MIGHT CALL IT A RAINY DAY FUND.

[00:30:03]

SOME STATES ACTUALLY REQUIRE A PARTICULAR PERCENTAGE, BUT I THINK AT THE STATE OF TEXAS, IT'S A PARTICULAR NUMBER OF DAYS IS THAT RIGHT CHIEF REED? THE AVAILABLE FUND BALANCE.

>> THE STATE OF TEXAS DOESN'T HAVE ACTUALLY ANY KIND OF POLICY OR REQUIREMENT.

THOSE ARE JUST DOLLARS ACTUALLY ABOVE WHAT YOU AS A BOARD HAVE ESTABLISHED AS A BASELINE IN DOLLARS. [OVERLAPPING]

>> YOU'RE NOT TALKING ABOUT THE RESERVE, YOU'RE TALKING ABOUT THE FUND BALANCE.

>> THE 224.

>> THE 224, I'M SORRY.

>> TWO TWENTY FOUR IS ABOVE DOLLARS THAT ARE SET ASIDE, ABOVE DOLLARS THAT THEY CAN'T BE SPENT THAT WE HAVE AVAILABLE.

RIGHT NOW, THERE'S NO RESTRICTIONS ON THOSE DOLLARS.

>> I'M GETTING TO THIS.

SINCE WE HAVE A RUNNING DEFICIT, WHAT INSTANCES WOULD YOU FIND YOURSELF USING THAT?

>> WE ARE GOING TO USE IT. I CAN'T CHANGE THE SLIDES, BUT ON THE NEXT SLIDE, TALKED ABOUT USING, THERE WE GO.

IN '22-'23, IN THAT MIDDLE LINE, WE'RE GOING TO USE $31 MILLION OF IT IN '22-'23 FOR THE DEFICIT.

>> THE RESERVE?

>> WE'RE USING THAT RESERVE, SO THE 224 IS THAT NUMBER THAT YOU SAW ON THERE THAT YOU'RE TALKING ABOUT.

WE'RE GOING TO ADD TO IT THIS YEAR.

WE'RE GOING TO ADJUST SOME OF IT TO BE RESTRICTED BECAUSE IT'S IMPORTANT BOARD POLICY, SO WE WILL START WITH 293.

SO THAT 224 BECOMES 293, STARTING ON JULY 1 THIS YEAR, IS OUR EXPECTATION.

>> THANK YOU.

>> I HAVE A QUESTION ON SLIDE 6.

THIS IS QUITE A HUGE INCREASE.

BUT YOU MENTIONED THAT IT DOESN'T REFLECT OUR ACTUAL NET INCREASE.

CAN YOU GET US THAT NUMBER BY THE REGULAR MEETING OR WOULD YOU BE ABLE TO HAVE IT?

>> THAT IS THE INCREASE OF THE $202 MILLION.

WE HAVE $15 BILLION AN INCREASE, BUT WE'RE NOT GETTING TO KEEP VALUES.

>> DO WE KNOW MUCH WE ARE ABLE TO KEEP?

>> WE'RE NOT KEEPING ANYTHING. WE'RE SENDING IT BACK AND RECAPTURE.

>> BUT ALL OF THAT AMOUNT ON THERE?

>> WE COLLECT THOSE NEW TAXES, BUT WE DON'T KEEP THE INCREASE WE SENT IT BACK IN TAX COLLECTIONS. RECAPTURE.

>> I UNDERSTAND NOW. THANK YOU.

>> RECAPTURE IS 247 MILLION NEXT YEAR.

>> BASICALLY, EVEN IF WE GO UP, OUR RECAPTURE JUST GOES UP.

>> THAT IS CORRECT.

>> [OVERLAPPING] THAT BEFORE SO I SHOULD REMEMBER RIGHT OUT.

>> THAT IS CORRECT.

>> THANK YOU. COLLEAGUES, ANY OTHER QUESTIONS? OF COURSE, WE'LL HAVE TIME DURING THE REGULAR MEETING.

THIS CONCLUDES OUR PUBLIC HEARING.

THE BOARD WILL TAKE A BRIEF RECESS UNTIL 05:00 PM.

THE TIME IS 04:33 PM.

* This transcript was compiled from uncorrected Closed Captioning.