Crisis Averted? Hux Halves $3.5 Million Dollar Deficit

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The Excelsior Springs Board of Education meeting on Monday, April 11, 2022, covered a wide variety of subjects including honoring an employee, facing a looming budget crisis, and swearing-in of newly elected board members.

Michele Milledge was awarded Excelsior Springs School District’s classified employee of the month for April 2022. Michele was nominated by Elkhorn Principal, Annette Shelton. In her nomination letter, Shelton wrote:

Michele has a positive impact on students as well as staff. She’s always so positive and is the first to jump in to help with whatever is needed. Michele brings joy to the building and teachers, as well as students. We enjoy working with her each day. I cannot say enough great things about Michele and all that she has done to make Elkhorn such a great place for our students!

*Michele Milledge, Classified Employee of the Month (photo Mackenzie Cole).*

In his legislative update Superintendent, Travis Hux pointed out that although general revenue in the state is up to a record 11.2 billion dollars from the previous year’s total of 9.6 billion dollars, no new allocations have been made for education. Hux said “the foundation formula is underfunded, transportation is woefully underfunded but no money for those. As a matter of fact, House Bill 3002 which did have 21 million for raising the starting teacher salary has even been removed.” Hux went on to say that these are the types of hardships and lack of support school districts are facing right now. He also pointed out several “unfunded mandates” that have been put forth by legislators who are imposing new guidelines and rules for districts without providing funding to put those new rules into place. Instead of putting more effort into funding our schools, Hux pointed out a number of bills that have been proposed that would add up to billions of dollars in reduced revenue that, in turn, would be detrimental to school districts around the state including our own.

The bulk of the hour-long meeting was taken up by a lengthy discussion on the upcoming budget shortfall and proposed solutions. At the beginning of his presentation, Dr. Hux equated the budget presentation to “a scary movie, but with a happy ending.” To summarize, the Excelsior Springs School District receives funding in multiple ways. One of the main sources of state funding is based on the District’s weighted average daily attendance (WADA), which means, the District receives funding based on how many students attend school each day. Because of the tighter COVID-19 regulations, requiring students to stay home when showing any signs or symptoms of COVID-19, attendance over the past couple of years has seen a sharp decline, leading to a drop in revenue for the District. Compounding the attendance issue is the fact that the Excelsior Springs School District is one of only three schools in the state of Missouri working in partnership with Job Corps., a federally funded and regulated entity. During “normal times” the partnership with Job Corps., and the 400+ students who attend there, is a boon to the District generating nearly $600,000 in revenue per year. But, the Job Corps. campus was closed for nearly two years leaving the District in a lurch. (Note: Job Corps has reopened and students are returning to campus.)

Funding for the Excelsior Springs School District is also based on the number of approved applications for free or reduced meals. Because breakfast and lunch have been offered for free to all students over the past couple of school years, many families who usually fill out the forms, no longer see the need. This decline in participation has led to what is estimated to be another $300,000 loss in revenue for the District. There was also little to no summer school offered over the past couple of years which has caused the District to miss out on even more revenue.

As society realigns itself in the wake of COVID-19, Hux feels confident that many of the issues facing ESSD 40 will right themselves and rebalance. In the meantime, he presented an amendment to the current budget which would allow the District to weather the storm and actually come out ahead in the future. The budget amendment that Hux proposed reduces the $3.5 million dollar deficit and adjusts it to an approximately $1.6 million deficit. The reductions were made by identifying ways to increase revenues and reduced expenditures. Hux proposed the remaining balance be covered by budget reserves and Elementary and Secondary School Emergency Relief Funds (ESSER II). The good news is that Hux predicts a bounce back for the 22-23 fiscal year with preliminary budgeting showing around a $1.2 million dollar surplus for the District. Although there will be challenges, Dr. Hux said “there is a little bit of crystal ball gazing,” but overall he feels confident in his projections. The amended budget was approved 6-0.

See the full budget proposal presentation and budgets below:

Budget Presentation

Amended Budget Fiscal Year 22

Proposed Budget Fiscal Year 23

A technology proposal was presented in which 452 Chromebooks, as well as 132 MacBooks, would be purchased for use in the upcoming 22-23 school year. The Chromebooks would go to students the MacBooks would go to staff. It was stated that 100% of the money spent on the Chromebooks for students would be reimbursed by state funds and 50% of the cost of the MacBooks would be reimbursed. Deputy Superintendent, Jaret Tomlinson stated that without reimbursement the total capital outlay would be $256,923, but the actual end cost for “all of that technology” with reimbursements would be $51,434. Board approved 6-0.

The contract for bus services is due to expire soon and the Board made a decision based on a recommendation from Deputy Superintendent Tomlinson. Tomlinson said, “it was a pretty clear-cut winner, Apple Bus who’s our current provider had the low bid. They also met all the demands of what was in the RFP [request for proposal], and so we would recommend that we continue to go with Apple Bus for another five-year term.” Tomlinson added that the contract is renewed on a yearly basis and can be terminated by either party during that renewal period. Board approved 6-0.

Board member Troy Snelling took a moment to express gratitude towards Jim and Carolyn Shutte who have established a generous scholarship fund. Snelling explained that the scholarship will initially provide awardees with $1000 dollars per semester for the first year of higher education. The goal within the next few years, he said, is to raise that amount to $1000 per semester for four years of an awardee’s higher education expenses. He said the candidates for the award would be selected by a nomination committee at the high school and would then be voted on by the teachers. He urged board members to express their thanks to the Schutte family for their “amazing commitment to our kids.”

Curriculum Director, Melissa Miller presented the virtual learning handbook, with minor changes, which was approved by the board 6-0. A couple of new promotional items that will be used by the district were distributed to those in attendance for preview. Miller also highlighted the success of the Night with the Band fundraiser, the “Hero/daughter dance” event, and also fundraising efforts by the cheerleaders. She concluded by sharing the “good news” that the elementary curriculum was complete and both the high school and elementary curriculums would be added to the District’s website in the coming months.

*Board secretary Lisa Shelton swears in newly re-elected board members, Kalyn Goode and Tray Harkins (photo Mackenzie Cole).*

To conclude the meeting, board members Tray Harkins and Kalyn Goode who won reelection on April, 5th were sworn in for their three-year terms. The board selected Harkins to remain as board president, Troy Snelling to serve as board vice-president, Superintendent, Travis Hux to serve as treasurer, and Lisa Shelton to serve as board secretary.