DATE: DECEMBER 13, 2002

RE: Finance Committee Meeting Summary

December 12, 2002
5:00 p.m. Board Conference Room

In Attendance:           
Board Members-Bob Moore, Dean Bacon, Rich Root
Administrative Members-Perry Soldwedel, Matt Wilkinson
Association Members-Debbie Denning, Mary Jane Ingram
Non-Committee Board Members in attendance-Jeff Brooks, Sherry Whitmore
A motion was made by Board member Bacon to call the meeting to order at 5:07 p.m.

The Finance Committee reviewed the 2002 levy.  There were increases in the estimated EAV and new growth construction.  As proposed in November, the Board is asked to adopt the levy increasing last year’s extension by 4.99%.  The committee also discussed the process of developing a philosophy and strategies to develop a long-range financial plan to balance the District’s budget.

The Finance Committee reviewed the results of the brainstorming sessions of the Principals and the Superintendent’s Cabinet (see attached).  In a nonspecific and nonjudgmental process, these conceptual strategies were developed to identify the most effective ways in which the District could generate revenue and reduce expenditures to meet its needs.  The six expenditure categories of the District are the following: Personnel, Purchased Services, Supplies and Materials, Capital Outlay/Equipment, Other Objects/Dues and Fees, and Tuition Services.

No decisions have been made to reduce the District’s budget, however, $500,000 to $1 million may be reduced from the budget based on known information at this point.  The Board will need to give the committee direction on whether the District should take a conservative approach, a more aggressive approach, or a moderate approach somewhere in the middle with a combination of some cuts and the use of reserves in reducing the budget.

The Finance Committee has been asked to take the conceptual strategies and review them with their colleagues and provide feedback at the next meeting.  The Committee will review the feedback and group the results into immediate/short-term or long-term solutions and decide which strategies are unacceptable. The Committee will also review all of the expenditure categories except personnel services to get a better understanding of the budget.  The Administration will also offer potential ideas to the Committee for reductions to the budget. 

The next Finance Committee meeting is scheduled for Thursday, January 23, 2002 at 6:30 p.m. in the Board Conference Room.

A motion was made by Board member Moore to adjourn the meeting and second by Board member Root at 6:25 p.m.

Cc:  Finance Committee