February 27, 2023 at 7:30 PM - Lake Shore Board of Education Regular Meeting

Description:  Roll Call of present members:
President- Kurt Ziegler
Vice-President- Susan DeLong
Secretary- Elizabeth Munger
Treasurer- Amy Thomas-August
Trustee- Sharon Bartl
Trustee- Amber Hildebrand
Trustee- Wendy Tobias

Description:  This agenda item is the opportunity for the audience to address the Board on any agenda item. The Board will take no action on issues brought before it at this time but may refer such issues to the administration for further study. 

In keeping with Board Policy po0167.3 the following rules apply to audience participation:

To permit fair and orderly public expression, the Board shall provide a period for public participation at public meetings of the Board and publish rules to govern such participation in Board meetings and in Board committee meetings.

The presiding officer of each Board meeting at which public participation is permitted shall administer the rules of the Board for its conduct.
The presiding officer shall be guided by the following rules:

1. Public participation shall be permitted at a time as determined by the presiding officer. 
2. Anyone with concerns related to the operation of the schools or to matters within the authority of the Board may participate during the public portion of a meeting. 
3. Attendees must register their intention to participate in the public portion of the meeting upon their arrival at the meeting. 
4. Participants must be recognized by the presiding officer and will be requested to preface their comments by an announcement of their name; address; group affiliation, if and when appropriate. 
5. Each statement made by a participant shall be limited to five (5) minutes duration.
6. No participant may speak more than once on the same topic unless all others who wish to speak on that topic have been heard. 
7. Participants shall direct all comments to the Board and not to staff or other participants.
8. All statements shall be directed to the presiding officer; no person may address or question Board members individually.

Description:  Move to approve the following:

• Minutes Regular Board Meeting January 23, 2023
• Minutes Special Board Meeting February 6, 2023
• January Check Register
• January Investment Log
• January Purchase Card Report
• January SACC Report
• January Food Service Report

Description:  Recommend the approval of the following personnel report.
Non Unit
Move to approve the employment of:
Josiah Toma, Technician Specialist, Districtwide, effective February 2, 2023. ASC3, Step 2.
AFSCME LOCAL 1217, (American Federation of State,  County & Muncipal Employees)
Move to accept the resignation of:
Jody Dorsey, Kitchen Helper, Lake Shore High School, effective February 6, 2023 (end of work day).
Move to approve the employment of:
LaTonia Tolliver, Kitchen Helper, Kennedy Middle School, effective January 17, 2023. AFSCAF, Step 1.
Jessica (Quinn) Moore, Kitchen Helper, Kennedy Middle School, January 3, 2023. AFSCAF, Step 1.
LSFES, LOCAL 6195, (Lake Shore Federation of Educational Secretaries)
Move to accept the resignation/retirement of:
Carol Ponder, Violet Elementary, Building Secretary, retirement, effective June 23, 2023, 33 years of service (October 1990 - June 2023.
LSFSS LOCAL 04793 (Lake Shore Federation of Support Staff)
Move to accept the resignation of:
Judy VanOrsdal, Lunchroom Monitor, Violet Elementary, effective January 24, 2023.
Move to approve the employment of:
Shannon Gillis, Campus Monitor, Lake Shore High School, effective January 30, 2023. Class C, Step 3.
Amanda Withey, Lunchroom Monitor (Class A, Step 3) SACC Caregiver (Class B, Step 3) Masonic Heights Elementary, effective January 23, 2023.
GSRP (Great Start Readiness)
Move to approve the employment of:
Colette Jenkens, GSRP Associate, Rodgers Elementary, effective February 8, 2023. SPC, Step 4.
ECC (Early Childcare Center)
Move to accept the resignation of:
Jacky Tabbert, Assistant Caregiver, resignation effective January 27, 2023.  
Move to approve the employment of:
Kelly Marcuz, Assistant Caregiver, effective January 23, 2023. SPC, Step 1.
Erica Pierce, Assistant Caregiver, effective January 23, 2023, SPC, Step 1.
Amanda Withey, Assistant Caregiver, effective January 23, 2023. SPC, Step 1.
 

Description:  As required by the State School Aid Act, the report of fall benchmark assessments for K-8 students disseminated by student subgroups and buildings. Review of American Recovery Act ESSER III funds' requirements, the Lake Shore plan, and student support efforts.
Please see attachment.
 

Description:  Course Description for Advanced Creative Writing: This one semester class is for students in grades 11-12 who have successfully completed Creative Writing. Students will be challenged to compose original short and extended fiction, verse, scripts, etc. Students will participate in small group workshopping where planning, writing, and revising will be the focus. They will be expected to present writing ready for publishing.

See link below for more details.

Description:  Background:

The first document attached is the Proposed First Amendment of the 2022/23 General Fund Budget that was adopted by the board in June 2022. This 2022/23 Original Budget is displayed in column 2 and had a budgeted net loss of $46,461. The Proposed Amendment in column 3 contains a budgeted net income of $825,404 which is a $871,865 improvement in financial position from the Original Budget. The amended budget would result in a June 30, 2023 General Fund Balance of $ 3,821,813 which is 8.6% of General Fund Expenditures, also an improvement compared to the 6.5% Fund Balance from the Original Budget.

The Proposed Amendment contains an incoming transfer of $80,000 from the Food Service Fund (for indirect cost charges). This amount is unchanged from the Original Budget. There is also a $100,000 incoming transfer from the Adult Education Fund for central office and General Fund costs, that was included in the Original Budget. Due to the continued suspension of the International Program resulting from the global COVID-19 pandemic travel restrictions, there continues to be no incoming transfer (related to the tuition and foundation allowance received from the 75 International Program students in the International Program) as there had been in pre-pandemic years. This fact is unchanged from the Original Budget. A $17,250 outgoing transfer to the Food Service Fund (per MDE mandate for free/reduced students) is also included. These other funds are the responsibility of the General Fund, resulting in the annual transfers that occur.











The main highlights of the major general fund revenue and expenditure changes that are disclosed in column 4 are as follows:

GENERAL FUND REVENUES

Local Sources-Decrease is due to slight decreases in delinquent property tax collections, insurance claim proceeds, and Violet Elementary School Age Child Care fees. 

State Sources-Increase of $2,361,442 is the net result of several factors. The 2022/23 original budget assumed a blended student count of 3,076, which was equal to the Spring 2022 actual student count. The actual blended count of 3,180, is 104 higher than budget equating to a gross revenue increase of $951K. However, since 30 of the 104 student increase occurred at the district’s alternative education program, the net revenue increase for the general education students in the General Fund was only $677K. The actual 22/23 foundation allowance of $9,150 per student was $15 more than the budgeted amount of $9,135, resulting in a positive variance of $47K. $680K of state revenue was added resulting from the new Special Education Reimbursement formula, which guarantees a minimum of 75% of the $9,150 foundation allowance for all Special Education students. This was a part of the state’s budget that was passed after the June budget adoption and resulted in a positive budget variance of $450K. The district’s Section 31A At-Risk program experienced a funding increase of approximately $200K over the original budget, in addition to a large carryover of $600K from the previous year, for a $800K total increase over the June adopted budget. The Great Start Readiness Program had an increase in state funding of $150K, which was more than offset by a $203K reduction in federal GSRP funding. New state grants for Section 97 School Security and Competitive School Safety increased revenues by another $373K and $250K, respectively. The only negative budget variance was a result of the MPSERS Cost Reimbursement Section 147 preliminary calculation that was $400K less than projected. The overall net result of these variances was a significant increase to State Sources Revenue. The increases in the Section 31A, Section 97 School Security and Competitive School Safety programs had corresponding increases in General Fund expenditures since grant revenues can only be realized to the extent that expenditures are incurred and not all new grant monies were used to supplant existing General Fund expenses.

Federal Sources-Decrease of $161,605 is the result of several changes since the June budget adoption. There was an elimination of $228K of one-time federal ARP funding for Special Education. $203K of one-time federal GSRP revenue was also eliminated and redeployed to state GSRP funding, as noted above. These reductions were partially offset by a $155K increase in IDEA Flowthrough funds and a new $93K Cares Act grant for Childcare expenses. All of these federal grant revenue increases had expenditure offsets in General Fund Expenditures since the revenues can not be realized until the expenditure has been incurred.

Interfund Transfers-There was no change from the original budget. The $180K transfer total consists of a $100K incoming transfer from the Adult Education Fund for General Fund expenditure reimbursement and $80K from the Food Service Fund for central office costs.

Interdistrict Sources-The $72,539 increase is due to a $149K increase in ACT 18 Center Program Reimbursement, which is partially offset by a slight decrease in Enhancement Millage revenue. Both revenue sources are received through the Macomb ISD.
                                                                           
 

GENERAL FUND EXPENDITURES

Basic Program-Decrease of $632,926 mainly due to the following:
Teaching staff right-sizing-$300K decrease
Textbook purchase reductions related to ESSER funding reductions-$146K decrease
One-Time Federal GSRP funding elimination-$203K decrease
Summer School Instructional Transition Camps Charged from Adult Education Fund-$91K decrease
Early Retirement Incentive Payments to LSFT-$150K increase

Added Needs-Increase of $710,018 due predominately to increased expenditures for Section 31A At-Risk expenditures that closely correspond to the $600K carryover funds noted in the State Source Revenue area. These funds are budgeted for additional At-Risk teacher and aide compensation, workshops and conferences, and instructional coaching, among other things. There is also a $200K increase in Center Program Act 18 expenses for teachers and aide compensation due to more students in the program. Career and Technical Education budgeted expenses for drafting and multimedia teaching decreased by $76K.

Pupil-Increase of $402,765 due to the following:
Section 31A At-Risk Teachers/Aides/SW Compensation pursuant to increased 31A funding-$145K increase
Compensation increases for social workers/psychologists/therapists-$100K increase
Early retirement incentives and Critical Shortage pay-SW/Therapists/TC-$100K increase
Care Solace and mental health programs-$50K increase

Operations/Maintenance-Increase of $563,445 mainly due to the following:
New School Security Grant budgeted expenses-$250K
Third-Party Contracted School Security-$80K
Boiler/HVAC replacements and repairs-$70K
Utilities inflation-$50K
Maintenance Supplies, inspections, miscellaneous repairs-$50K

Central-Increase of $111,617 primarily due increased technology costs for network and software license upgrades and the reclassification of a central office employee

OVERALL SYNOPSIS-GENERAL FUND

The district’s General Fund budgeted operating position has increased by $871,865 from its original budgeted position for the 2022/23 school year. The overriding reason for this improvement is the actual 2022/23 blended student count surpassing June budget expectations by a net 74 General Education students in the General Fund, equating to $677K. This is in addition to the additional $47K that was realized with the actual foundation allowance being $15 per student better than what was expected. $450K of additional Special Education revenue resulting from the state’s formula change was mostly offset by a $400K decrease in MPSERS Retirement cost reimbursements compared to the original budget. The amended General Fund Balance of 8.6% is an improvement over the actual June 30, 2022 position of 6.5%. However, cash flow borrowings to help meet bi-weekly payroll expenses, via the current 2.7M State Aid Anticipation Note, will continue until the General Fund balance reaches the 12% to 15% range.

This amendment was completed in collaboration with the Superintendent, Central Office Administrators and Staff, Principals, and Program Directors. The proposed budget amendment is an estimate based on the most recent financial data available and will be amended again in June at which point more complete and accurate data will be available. 



FEBRUARY PROPOSED AMENDMENT-OTHER FUNDS

The remaining attached documents are the Proposed First Amendments of the 2022/23 Budget for all of the other funds of the District. The major highlights are as follows:

ADULT EDUCATION FUND-State revenues increased by $554,763 due mainly to an increase in North Lake High School’s student count. This revenue increase was partially offset by a $225,091 decrease in federal revenue resulting from less Workforce Development grant funding. There continues to be an outgoing transfer of $100,000 to the General Fund for reimbursement of central office and other General Fund district employee costs. Overall, the fund’s net position significantly increased by $516,227 resulting in an amended net income of $161,115 for 2022/23. This is in comparison to a net loss of $355,112 in the original budget. The amended fund balance of $610,894 remains solid and will allow for continued operating transfers to the General Fund.

INTERNATIONAL PROGRAM FUND-The fund is projected to have an operating deficit of $29,500 in 2022-23. This is a slight net position decrease of $4,100 from the original budget mainly due to minor expense increases. Minimal expenses related to the Taylor building utilities and general upkeep continue. Due to the continued suspension of the International Program caused by ongoing COVID-19 International travel restrictions, there will not be an outgoing transfer to the General Fund in 2022/23. All other fund revenue and expense activity is expected to be minimal during the program suspension.

FOOD SERVICE FUND-The fund is budgeted for a reduction in financial position of $100,140 versus the original adopted budget. This is a result of a significantly decreased federal meals reimbursement rate (a consequence of the expiration of pandemic relief) resulting in a $330K decrease in federal revenue compared to the original budget. This decrease was partially offset by a $267K upsurge in direct school lunch and A-La-Carte sales, resulting from the conclusion of the pandemic.  Additional expenses for inflationary food costs and employee compensation added to the reduced amended fund balance. The outgoing transfer to the General Fund for indirect and central office costs remains unchanged at $80K. Despite the amended 2022/23 net loss of $197,152, the Food Service Fund continues to enjoy a very healthy projected fund balance of $499,137 or 28% of expenditures.                                                                                                           

BUILDING AND SITE FUND- $250K of Capital Outlay Costs have been budgeted for relating to non-recurring replacements and repairs throughout the district and infrastructure upgrades not eligible to be covered by bond money. There is also a bus lease expenditure included in budget. These amounts may be adjusted with the June Amendment. The amended June 30, 2023 fund balance is $574,887.

INTERNAL SERVICE FUND-The district continues to be self-insured for Worker’s Compensation claims; hence a fairly significant fund balance is still necessary for protection against any potential catastrophic claims. Otherwise, the fund is projected to have a 2022/23 net operating loss of $106,000 due to worker’s compensation claims costs that exceed the charges to other funds. This will result in an amended June 30, 2023 fund balance of $296,983.
 

Description:  The district’s wireless access points and network are in need of a refresh. With the availability of federal program e-rate funding the district issued an RFP for wireless network electronics and received 3 competitive bids. Despite a small price variance, the recommended bid award went to Delta Networks based on continuity of the physical product, local staff availability, systems support and past experience with and performance of the company, among other criteria. The district expects to receive a discount of approximately 80% on this project, via the e-rate program, which will be paid as a refund. The e-rate purchase window for these upgrades opens on April 1^st, 2023 and closes on September 30^th, 2024. General Fund and Building & Site Fund money will be utilized to pay for the project work.