Crane Board Meeting at a Glance

Streamed via the district’s Vimeo account to adhere to social distancing directives, the governing board of Crane School District convened Tuesday evening for its regular monthly meeting.

Prior to the regular meeting, the board held an executive session to discuss its evaluation of superintendent performance and review annual performance goals before moving into a public hearing to provide opportunities for questions and comments from the public regarding the district’s revised expenditure budgets for Fiscal Year 2019-2020. With no comments submitted, the board moved into its regular session.

LEFTOVER RANCHO VIEJO

FUNDS

The student activity fund report, included in the board’s consent agenda, showed Rancho Viejo Elementary School as having an ending balance of $6,488.20. According to Chief Financial Officer Dale Ponder, following discussion with the district’s auditor and board attorney, it was determined that any existing cash balances should follow the students to the schools they’ll enroll in.

“If the majority of the students end up enrolling at H.L. Suverkrup, as an example, then those funds should be provided on a prorated basis,” Ponder said. “We presume that majority of those students will continue at Salida del Sol, and so majority of those funds will follow the students at that campus. But if 10% of the students attend another campus, they should receive 10% of those funds.”

Currently, the district is tracking Rancho Viejo students’ enrollment. Once it is clear which campus each student will be attending, the funds will be disbursed accordingly, with a follow-up report to be provided at a future board meeting. PROPOSED EXPENDITURE

BUDGET

To garner stakeholder feedback and present a final budget for maintenance and operations and capital expenditures proposed for Fiscal Year 2021, the board will hold a public hearing during its next regular meeting, slated for July 14. A budget summary will be posted on the district’s website, craneschools. org, prior to the public hearing for community members to view. Individuals who wish to submit public comments may do so by emailing Board Secretary Minnie Encinas at mencinas@ craneschools.org.

According to Ponder, the development of the budget was guided by the state’s “skinny budget” signed by Gov. Doug Ducey in March, which includes a 1.74% increase in base level support and a classroom site fund decrease of 2.1% per student paired with a one-time payment of $40 per weighted student count to account for Phase 3 of the 20x20 initiative.

In the “skinny budget,” the state aid supplement provided via Proposition 123 is increased from $50 million to $75 million. According to Ponder, the upcoming fiscal year is the first of five in which Crane will receive this share. The estimated revenue for the district is $378,063 — a $126,021 increase from the current fiscal year.

According to Ponder, resultsbased funding for the upcoming fiscal year will be determined by Spring 2019 testing, as no assessments were completed this spring due to school closures.

Among its ongoing budget considerations is the district’s interest in maintaining “level” classroom site fund levels, which includes base and performance pay as well as instructional improvement.

“We don’t really want to see a great deal of ebbs and flows, especially considering we’re unsure of what the sales tax revenues will be moving forward,” said Ponder. “Without really knowing what the sales tax picture is, we’ve elected to remain level so that we can absorb any impacts that might happen and help ensure that eligible staff members receive that compensation.”

New considerations for the upcoming fiscal year include the implications of current year funding and COVID-19 related impacts on areas like enrollment, attendance, supplies and infrastructure.

“That’s a huge variable that we’re unsure about, however, we understand and feel that there will be perhaps an opportunity for some relief coming forward and also knowing that we have some albeit a small amount of CARES dollars that might be able to address some of those impacts as well,” Ponder said.

From the current fiscal year, the district’s FY 2021 budget proposes a total maintenance and operations increase of nearly $1.4 million, with 90% of those funds being designated for salaries and benefits, majority of which are placed in reserves to ensure the district “can brace for whatever impacts that might be coming,” according to Ponder. The remaining 10% of the funds are divvied between utilities (5%), purchased services (4%) and supplies (1%).

In unrestricted capital funds, the district projects a $1.7 million decrease from the current fiscal year, as the funds reserved to expand Salida del Sol to accommodate the school’s transition to a K-6 program has been expended and will not carry forward. Broken down, 63% of the capital funds are designated for furniture, equipment and technology, 27% is designated for capital leases, 10% for utilities and 0% for textbooks and other materials.

COMPENSATION ADJUSTMENT

In April, the governing board approved a 2.75% increase to the employee compensation and benefit package for the 2020-2021 school year, with the intention of reviewing “the circumstances of the finances of the state” during the board’s June meeting to determine whether a 5% salary increase would be attainable to achieve the final phase of the district’s 20x20 plan.

Due to current circumstances, the board elected to table the topic until October when more information is available.

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Tuesday’s meeting can be viewed online at vimeo. com/427915457.