School Board Meeting 9-15-26

September Boulevard Meeting Overview

Opening and Attendance

• The meeting begins with the Pledge of Allegiance led by the president.

• Roll call is conducted by Becky, confirming attendance from members Tatum, Bill, Willie, Rachel, Jennifer, and noting Jeremy's absence.

• A motion to approve the agenda is made by Rachel and seconded by Willie; the vote passes unanimously.

Recognition of Achievements

• Kimberly Ross introduces Kayla Solars as the recipient of the Extra Mile Award for her dedication as a classified employee in Bentonville schools.

• Kayla has worked in various roles over 16 years and currently serves as district registrar and record specialist, known for her exceptional customer service.

• Colleague Rebecca Camarick praises Kayla for solving diverse challenges faced by families and ensuring student success.

National Merit Semi-Finalists Recognition

• Dr. Tomorrow introduces a record number of National Merit semi-finalists (38 students), highlighting their academic achievements.

• The significance of early educational support from parents and teachers is emphasized as foundational to these students' success.

• Students are recognized for being in the top 1% based on PSAT scores; this designation opens doors for scholarships.

Budget Presentation

• Dr. Schwanhouser presents the proposed budget for 2026–2027, emphasizing its balanced nature reflecting district goals.

• Key variables affecting revenue include student membership trends; Bentonville Schools continues to grow while many Arkansas districts face declines.

• Foundation funding per student shows a $125 reduction due to changes in health insurance contributions but reflects an overall increase when adjusted.

Educational Strategies at Central Park Elementary

• Carrie Bradshaw discusses Central Park's journey towards becoming a certified visible learning school focused on enhancing teacher clarity and student ownership since 2021.

• Initial assessments revealed that students struggled to articulate what they were learning; significant improvement was noted with 86% able to do so after implementing new strategies.

• The focus shifted from teaching methods to understanding student learning outcomes, resulting in notable growth in science performance metrics.

Property Tax Assessment and Amendment 79 Overview

Understanding Property Tax Increases

• The rule states that if there is an increase of more than 10% in property value, a rollback calculation is necessary. However, new discoveries (e.g., newly built homes) are excluded from this calculation.

Amendment 79 Implications

• Amendment 79 caps property tax increases for homeowners at 5% per year, ensuring affordability for residents living in their homes.

• For non-resident owners (like Airbnb hosts), the increase is capped at 10%. Additionally, homeowners aged 65 or older or disabled have their taxes frozen entirely.

Legal Developments Affecting Assessments

• Recent lawsuits against Benton County Assessor Rodri Grieve challenge how the freeze concept under Amendment 79 was applied during reappraisals.

• A case highlighted that the freeze should occur on the purchase date rather than after a reappraisal, affecting approximately 6,665 properties and resulting in about $8 million in overtaxed amounts.

Future Financial Implications

• The judge's ruling may lead to future tax credits instead of refunds for affected families. The impact on assessed values within Bentonville school district remains uncertain.

Budget Overview for Fiscal Year 2627

Fund Balance and Revenue Projections

• The budget begins with a fund balance of $41.6 million (15.2%), with total revenue projected at $273.7 million against expenses of $260.8 million.

• The goal is to transfer $13 million from operating funds into fund three by year-end to maintain financial stability while planning for future construction projects.

Major Expense Categories

• Salary and benefits constitute the largest expense category at approximately 73.1%, reflecting the district's commitment to valuing its staff through competitive compensation.

• Other significant expenses include debt payments ($20.6 million), cleaning services ($9.3 million), materials and supplies ($7.9 million), and electricity costs ($4.5 million).

Capital Outlay and Federal Grants

Funding Allocation Insights

• Fund three starts with a balance of $44.7 million; planned expenditures include roofing projects, athletics expansion, HVAC upgrades, furniture replacements, and general maintenance totaling around $3 million.

• Capital outlay will also cover technology needs like Chromebook replacements funded by dedicated millage rates aimed at improving facilities and transportation services.

Federal Grant Utilization

• Expected federal grants amount to about $10.5 million across various programs supporting students at risk of failure, teacher quality improvement, special education needs, etc.

Key Takeaways from Budget Discussions

Notable Changes in Budget Dynamics

• Significant changes include approved raises totaling $7.4 million impacting salary budgets alongside increased revenue due to higher assessed values and student enrollment numbers driving up expenses as well.

Long-term Financial Planning Considerations

• Potential impacts from legal rulings regarding property tax assessments could affect future revenues but are manageable within the overall budget framework given its size (~$300 million).

Approval Process for Financial Reports

Motion for Approval

• Following discussions on budgetary matters, motions were made to approve both the proposed budget for fiscal year 2627 as well as subsequent financial reports detailing current fund balances and expenditures.

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