Call to order

The Budget Hearing was called to order and a quorum ascertained by Kathyann Young.

Approval of Agenda

Head of School Report

Dr. Bostic provided a year-end review. The April Employee of the Month was Janea Morgan and the May Employee of the Month was Mr. David Sawyers. The Teacher of the Year is Ms. Italy Henderson with Ms. Charnier Nichols and Ms. Angela Rodgers named as Educational Support Specialists I and II. Dr Bostic highlighted end-of-year events such as 8th grade High School signing day, promotional programs for 8th, 5th, and kindergarten grades, and various field trips. Post-planning day and staff activities were highlighting. Mr. Brown was acknowledged for his work as the grill master. The report also included current enrollment figures for the next school year, operational updates on landscaping and maintenance, and personnel vacancies.

Budget Hearing

The budget projects an 11% increase in QBE revenue based on an expected enrollment of 560 students, with a 5% overall revenue increase to $8,421,612. The school currently has 504 enrolled students, with 583 having accepted seats through the lottery process. The budget includes a 14.87% increase in salaries and benefits, incorporating a $2,500 raise for full-time positions and $1,250 for part-time positions. To balance the budget, a transfer of $295,000 from the fund balance is proposed, leaving an expected fund balance of $4.8 million at the end of FY26.

Discussion focused on proposed salary increases and their impact on the budget. Ms. Lee explained that a $2,500 increase for full-time positions and $1,250 for part-time positions is being requested, which would raise the base pay across the board rather than being a step increase. Ms. Wilhite sought clarification on how this would affects the existing pay scale and the total budget impact. The group also discussed increases in teacher retirement contributions and health insurance costs. Ms. Lee agreed to provide a detailed spreadsheet and post the updated pay scale for staff to access.

The finance team discussed the proposed budget for the next fiscal year, focusing on enrollment targets and salary increases. They aim to stabilize enrollment at 580 students, which would eliminate the need to request funds from the fund balance. The team analyzed the budget's sustainability for 2-3 years, considering the end of their charter term. However, concerns were raised about using fund balance for ongoing expenses like salary increases, especially given the school's history of fluctuating enrollment. The leadership acknowledged the lack of quantitative data on why families leave the school, which makes it difficult to justify the proposed budget increases. Dr. Bostic emphasized the interconnectedness of salaries, teacher retention, and academic programs, suggesting that competitive salaries are necessary to maintain qualified teachers and the investments made in professional development.

Discussion focused on school enrollment and funding calculations. Ms. Lee explains that the school's funding is based on the Full-Time Equivalent (FTE) count from October, not March. She clarified that there are multiple adjustments throughout the year: one for state funds based on October FTE, and two from the local district for local funds. The current funding is based on 525 FTE, which is close to the October 2023 count of 529. Dr. Bostic mentioned that there was also an increase in the state salary scale, which impacted the budget.

The group discussed the budget, focusing on salary changes totaling $728,665. Ms. Lee explained that some apparent increases are due to realigning positions with correct account codes rather than new hires. Ms. Wilhite requested a separate table outlining the components of the $728,665 increase for clarity. The group also mentioned a request for $295,000 from the contingency fund to balance the budget. Dr. Bostic and Ms. Lee agree to create the requested breakdown table for better understanding of the salary changes.

Ms. Wilhite commented that the presentation was good.

Next steps

• Dr. Bostic to check with the Ms. Reid on the timeline for having the projected 583 students registered and email the information to the board.
• Ms. Lee to create a separate table outlining the breakdown of the $728,665 increase in salaries, including new positions and realignments.
• Dr. Bostic to find and share the PowerPoint presentation from the DCSD explaining the funding adjustments and organization.
• Dr. Bostic to provide data on enrollment numbers for the last 3 years, comparing October FTE to March FTE counts, at the next finance meeting.
• Ms. Lee to verify if the $191,250 salary increase includes the associated fringe benefit costs.
• Ms. Lee to create a PDF of the pay scale and post it for staff access.
• Dr. Bostic and Ms. Lee to prepare more detailed explanations for the proposed budget changes for the next finance meeting and governance meeting.
• Ms. Lee to include information on the increase from each QBE allocation due to the State salary scale change in the external factors slide of the budget presentation.

Public Comment

The Meeting was Adjourned

The meeting adjourned at approximately 7:08 pm