August 23, 2022- BoardBits

The STISD Board of Directors approved the 2022-23 General Fund, Child Nutrition, and Debt Services Budgets and the district's tax rate as presented by STISD Assistant Superintendent for Finance & Operations, Marla Knaub, at the August 23 meeting. At $89,150,146, the budget decreased from last year’s budget of $119,046,883. The property tax remained at $.0492 per $100 in property value, although the Board motion implied an increase in the tax rate, as mandated by state statute.

Estimated Revenue for 2022-23 totals $81,585,148, an increase of 11 percent over the 2021-22 year. The breakdown is:

• Local/Intermediate/Out of State: $35,603,065 (43.6 percent);
• State Programs Revenues: $45,082,083 (55.3 percent);
• Federal Programs Revenues: $400,000 (.49 percent); and
• Other Resources Accounts: $500,000 (.61 percent)

Expenditures for the 2022-23 school year total $89,150,146. The breakdown for Expenditures by Object is:

• Salary Expenses: $58,438,637 (65.6 percent);
• Purchased & Contracted Services: $9,819,015 (11.0 percent);
• Supplies & Materials: $5,274,703 (6.0 percent)
• Other Operating Expenses: $4,469,716 (5.0 percent);
• Capital Outlay: $10,394,800 (11.7 percent);
• Operating Transfers Out: $753,275 (0.8 percent)

The Salaries expenditure accounts for nearly two thirds of the STISD budget. In the Expenditures by Function breakdown, $37,280,660 - over 40 percent of the total budget - is dedicated to Instruction. Maintenance & Operations is the next largest allocation with $11,260,018 (12.6 percent), followed by Capital Improvements with $7,700,000 (8.6 percent), and Student Transportation with $7,657,652 (8.6 percent). General Administration accounts for $4,587,375 (5.1 percent), and School Administration is $4,330,925 (4.9 percent). Guidance and Counseling is next on the list with $3,496,110 (3.9 percent). Knaub also recommended during the August board meeting that the district maintain 6 months operating cash within the fund balance and designate the following amounts:

Unassigned fund balance: $34,118,317 (6 months operating cash)
Designated fund balance: $47,793,002 (for future projects, including 2022-2023 capital projects)
Committed Fund Balance: $6,037,015 (committed for specific projects)
Total fund balance: $87,948,334

Frank Treviño, STISD Construction Manager, reported on the following projects:

• New Rising Scholars Academy Campus: The district is continuing to work with the architect to reevaluate the plans, and will make any adjustments necessary to assist with cost.

• New Health Professions Gymnasium: The architect is working with consultants to continue with the design phase. At the time of the report, we were at 75 percent in the Design Development Phase and pending information from the Geotechnical Report.

• Edinburg Complex Fencing: As of August 18, 2022, the subcontractor had removed 1,000 linear feet of damaged galvanized chain link fence. It is being replaced with black vinyl coated chain link fence, posts, and top rail. The work is being done in sections to ensure the complex is secured at all times. Weather permitting, the project was projected to be completed in four weeks.

• New Central Administration & Professional Development Building Renovation Project: Construction continues on the interior and exterior of the building. See photos below.

The STISD Board of Directors approved the 2021-2022 Teacher Incentive Allotment (TIA) plan and payments during the Aug. 23 board meeting.

The approved plan aligns with TIA statutory requirements, TEC 48.112, which states: A district shall annually certify that funds received under this section are used as follows: at least 90% of each allotment received under Subsection (c) was used for the compensation of teachers employed at the campus at which the teacher for whom the district received the allotment is employed; and up to 10% can be used for costs associated with supporting local designation system or to support teacher in obtaining designation. Districts must expend the funding to meet statute by August 31, 2022 each year (i.e. allotment dollars generated in 2021-2022 designations must be expended by August 31, 2022).

For any funds received by STISD for designated teachers under the TIA, 90 percent will be paid to the designated teacher. The remaining 10 percent will be used for administrative expenses and professional development. Should the district receive funding for a designated teacher who has resigned or retired, the district will forward payment to the resigned or retired teacher as soon as practicable. There will be no retention requirement such as requiring a teacher to be employed on a certain date to receive the funding in order for the compensation to be TRS eligible.

• The Board approved the rescheduling of the Nov. 22, 2022, and June 27, 2023, board meetings to the following dates, respectively: Dec. 6, 2022, and June 20, 2023, to address schedule conflicts.
• The Board voted to approve the district's selection of Gomez Mendez Saenz, Inc. as the architect of record for the 2022-2023 school year.
• Marla Knaub, Assistant Superintendent for Finance & Operations, provided the board with a report on ESSER I, II, and III funds. The district has approximately $4 million in ESSER funds to use by the end of the fiscal year 2023.
• The Board had the final reading and approved Policy Update 119. Update 119 contains (LOCAL) policies which require board action and adoption notification prior to publishing on the district’s online policy manual.
• The Board received a report on the district's research and progress in putting together proposals for a new Employee Longevity Incentive.