Additional Details

Finance Committee Meeting

AGENDA

Monday, December 17, 2012

7:30 AM

DeLayo-Martin Community Room, Alice and Bruce King Educational Complex, 6400 Uptown NE

Albuquerque, New Mexico

Albuquerque Public Schools

Minutes of the Finance Committee

December 17, 2012

_________________________________________________________________________________________

A Finance Committee meeting of the Albuquerque Public Schools Board of Education was held on Monday, December 17, 2012, beginning at 7:30 a.m., in the Alice and Bruce King Educational Complex, DeLayo-Martin Community Room, 6400 Uptown Blvd., NE.  Attending were:  Marty Esquivel, Lorenzo Garcia, Paula Maes, Analee Maestas (7:40), David Peercy and David Robbins (via telephone).

Absent:  Kathy Korte

1. I. Call to Order

Mr. Esquivel called the meeting to order at 7:32 a.m.

a.   Adoption of the December 17, 2012, Agenda and Approval of the November 19, 2012, Minutes

Mr. Garcia motioned for approval of the agenda and minutes with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

1. II.Consideration for Approval of Budget Adjustments for Grant Management
   1. a. IDEA-B-Special Education, $13,498,992
   2. b. Title I, $4,690,027
   3. c. Title IIA, $635,536
   4. d. Title III, $267,040
   5. e. KANW, $160,742
   6. f. IDEA-B-Preschool, $73,332
   7. g. ROTC, $62,000
   8. h. Title I Homeless Project, $10,000
   9. i. KNME-Tal-Net, $5,994
   10. j. Zia Family Focus Center, $5,000
   11. k. Asthma, $150

Ms. Teresa Scott presented the budget adjustments—five are estimated carryover for federal grant—requesting approval in order to meet March spending timeline.

Dr. Peercy motioned for approval of the Budget Adjustments for Grant Management with Ms. Maes seconding the motion in the affirmative.  Motion carried.

1. III. Consideration for Approval of Grant Management Inter-Function Transfers for November 2012
2. IV. Consideration for Approval of Grant Management Intra-Function Transfers for November 2012

Ms. Maes motioned for approval of the items 3 and 4, with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

1. V. Consideration for Approval of IDEA-B Grant Amended Application

Ms. Scott presented an amendment, which adds wording and moves $70,000 to cover expenses.

Ms. Maes motioned for approval of the IDEA-B Grant Amended Application with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

1. VI. Consideration for Approval of Cash Disbursements for November 2012

Mr. Heckart presented the November cash disbursements.

Ms. Maes motioned for approval of the Cash Disbursements for November 2012, with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. VII. Consideration for Approval of Musical Instruments and Equipment on Demand Bid #13018GR-SL

Mr. Heckart presented the yearly musical instruments on demand bid.

Ms. Maes motioned for approval of the Musical Instruments and Equipment on Demand Bid #13018GR-SL, with Dr. Peercy seconding the motion in the affirmative.  Motion carried.

1. VIII. Consideration for Approval of Operational Fund Inter-Function Transfers for November
2. IX. Consideration for Approval of Operational Intra-Function Transfers for November

Ms. Maes motioned for approval of items 8 and 9, with Mr. Garcia seconding the motion in the affirmative.  Motion carried.

1. X. Presentation of FY14 Strategic Budget Look Ahead

Mr. Moya began discussion by saying that while we are very grateful for increase revenues throughout the state for two years in a row, it is a little disconcerting to see that the amount of money going above the line has not kept pace with the increase in dollars to education.  An increase is being seen to public school support or to education in general.  Beginning to see money syphoned down below the line—making it categorical under the purview of the Public Education Department (PED) for competitive grants, which basically disequalizes.  Dollars are really needed above the line and through the formula—still has not made up all of the ground from the economic downturn.  State appropriations have increased by 7.1%; SEG has increased by 5.5%.  What is happening below the line is crowding out any growth that could happen above the line.  Based on the PED, if we were to take some of the money directed below the line and move it back above the line—that would mean an extra $11-$12M to the Albuquerque Public Schools for the coming year.  PED’s recommendation is more money being directed below the line, no money allocated for raises—5^th straight year, if this plays out, that public school employees have not seen a raise.  The PED FY14 scenario of what’s coming through the formula, APS’ share is about 26-27%--approximately $17.5M.  Forty-day enrollment is down approximately 300 students.  Grand total of increase and expenditures of $21.8M, revenue is $15.5M, leaving a $6.3M shortfall.  Related to the PTR waiver—APS is currently operating under a 7% class load waiver.  Discussion has been that the Governor will not sign a general appropriations act containing language that would continue to provide for districts to give waivers.  This was done for the last several years as a result of the economic downturn.  Without a waiver, APS would need to hire approximately 300 teachers at a cost of $18M.  Even if funded, finding 300 teachers would be difficult.  Currently, have about 95 vacancies (mostly special education)—having difficulty with existing vacancies.  Without the waiver and having to fill staff, APS faces about a $24.3M shortfall.  The recent history of budget cuts shows a grim five years of cuts totaling $111M.  Total cuts to direct instruction have been 6.8% (408 teachers, 121 educational assistants).  Cuts to the rest of positions have been 12.8%.  The other functions have been disproportionately cut throughout the budget—keeping cuts as far away as possible from education.  Currently, the total operational budget is over 90% salary and benefits—moved everything we can to other funds.

1. XI. Adjournment

Mr. Esquivel entertained a motion to adjourn the Finance Committee meeting at 8:27 a.m.  Dr. Peercy made a motion with Dr. Maestas seconding the motion in the affirmative.  Motion carried.  The next Finance Committee meeting will be held on Monday, January 21, 2013, at 7:30 a.m., in the DeLayo-Martin Community Room.