1 00:00:06,545 --> 00:00:07,725 - Hey everybody, I'm Doug. 2 00:00:07,825 --> 00:00:09,205 That's Connor. And welcome 3 00:00:09,225 --> 00:00:11,285 to the Bethel School District Presents podcast. 4 00:00:11,765 --> 00:00:13,685 Connor, we are gonna play a little game 5 00:00:13,745 --> 00:00:14,965 to start this week's show. 6 00:00:15,425 --> 00:00:17,045 I'm gonna give you a million dollars. 7 00:00:17,195 --> 00:00:18,565 - Wait, you're giving me a million dollars? 8 00:00:18,905 --> 00:00:21,125 - No, no, no, no. Sorry, this is hypothetical. No, 9 00:00:21,125 --> 00:00:22,125 - No, no, no. 10 00:00:22,125 --> 00:00:22,645 You said you're giving me a million dollars. 11 00:00:22,845 --> 00:00:24,485 I think you have to gimme a million dollars, don't 12 00:00:24,485 --> 00:00:25,485 - You? 13 00:00:25,485 --> 00:00:26,885 No, this is, it's a game. It's a thought experiment. 14 00:00:27,065 --> 00:00:28,565 - Ah. Like Brewster's Millions. 15 00:00:29,135 --> 00:00:30,885 - Maybe I wasn't allowed to watch 16 00:00:30,885 --> 00:00:31,885 that when I was growing up. 17 00:00:32,065 --> 00:00:35,525 - Oh, it's an eighties Classic Candy Pryor. Can't beat it. 18 00:00:35,635 --> 00:00:37,365 - Okay, I'll stop by. Blockbuster on the way home. 19 00:00:37,505 --> 00:00:38,765 Anyway, back on topic. 20 00:00:38,945 --> 00:00:41,005 If you had a million dollars to spend 21 00:00:41,145 --> 00:00:44,045 and you had to spend it in one day, how would you spend it? 22 00:00:44,065 --> 00:00:47,165 Now keep in mind, whatever you don't spend by the end 23 00:00:47,165 --> 00:00:49,485 of the day goes to your mortal enemy. 24 00:00:49,785 --> 00:00:51,845 - Oh, so you'd get it. - That's right. 25 00:00:52,195 --> 00:00:53,765 - Easy. Buy a house. Well, 26 00:00:53,995 --> 00:00:54,995 - Okay. 27 00:00:54,995 --> 00:00:57,965 So the aim here is to have a fun conversation, Connor, not 28 00:00:57,965 --> 00:00:59,605 to be a basic broadcaster. 29 00:00:59,865 --> 00:01:03,805 You also can't invest it. So no houses, no investing. 30 00:01:04,075 --> 00:01:06,765 - Okay, well what if I go to Costco, 31 00:01:07,245 --> 00:01:10,845 I buy a million dollars in hotdog and that's an investment. 32 00:01:11,115 --> 00:01:14,205 It's just an investment in my future. Happiness. Well, 33 00:01:14,205 --> 00:01:17,605 - That would be a choice, but I'm still gonna say no just 34 00:01:17,805 --> 00:01:19,685 'cause I'm concerned about your health. Connor . 35 00:01:19,915 --> 00:01:21,045 - Okay, let me see here. 36 00:01:21,395 --> 00:01:23,005 Well, I guess that could go a couple of ways. 37 00:01:23,385 --> 00:01:26,485 If Superintendent Siegel's listening, hi Tom. 38 00:01:27,045 --> 00:01:29,445 I would donate the million dollars to our district. 39 00:01:29,665 --> 00:01:32,445 If he's not listening. If I'd rent a hot air balloon, 40 00:01:32,895 --> 00:01:34,885 spend the rest of the million on glitter 41 00:01:35,025 --> 00:01:36,725 and dump it over a major city, 42 00:01:36,995 --> 00:01:39,405 - That would make you a very sparkly supervi. 43 00:01:39,765 --> 00:01:41,965 I like it. That's a great use of the money. 44 00:01:42,645 --> 00:01:44,285 Speaking of money, today we're talking 45 00:01:44,285 --> 00:01:46,965 with our Chief Financial Officer one, Mr. 46 00:01:47,015 --> 00:01:49,525 Brian Burley. Brian, welcome to the show. Well, 47 00:01:49,525 --> 00:01:50,765 - Thanks for having me. I'm excited. 48 00:01:51,165 --> 00:01:52,805 - I am two, in fact, I've been preparing 49 00:01:52,825 --> 00:01:53,965 all morning for this interview. 50 00:01:53,965 --> 00:01:56,645 I've done tons of research, made multiple charts and graphs. 51 00:01:56,725 --> 00:01:58,885 I even brushed up on my multi-variable calculus 52 00:01:58,905 --> 00:02:01,005 and a little bit of matrix algebra just for fun. 53 00:02:01,265 --> 00:02:04,005 And Connor, well Connor just finished a ball of lucky charm, 54 00:02:04,025 --> 00:02:05,445 so I think we're both prepared for this. 55 00:02:05,965 --> 00:02:07,125 - Absolutely a full tummy. 56 00:02:07,225 --> 00:02:09,565 And with that said, before we get started, I do want 57 00:02:09,565 --> 00:02:10,725 to preface our conversation 58 00:02:10,945 --> 00:02:12,605 by saying we're gonna have some fun today 59 00:02:12,745 --> 00:02:14,085 and we're gonna be a little silly at times. 60 00:02:14,225 --> 00:02:17,605 But for the record, Brian, your job is incredibly important 61 00:02:17,665 --> 00:02:19,925 and you, and we take it very seriously. 62 00:02:20,065 --> 00:02:22,485 You're in charge of millions of taxpayer dollars 63 00:02:22,745 --> 00:02:24,005 and we want to thank our voters 64 00:02:24,065 --> 00:02:26,765 and local taxpayers for entrusting us with their money so 65 00:02:26,765 --> 00:02:29,445 that we can make sure the students in our community get the 66 00:02:29,445 --> 00:02:31,845 best quality education they can possibly have. 67 00:02:31,985 --> 00:02:34,045 - That's right. My team works very hard every day. 68 00:02:34,425 --> 00:02:36,365 We do like to have some fun on occasion, 69 00:02:36,465 --> 00:02:38,325 but we do take our jobs very seriously 70 00:02:38,585 --> 00:02:40,565 and we do again, thank the taxpayers 71 00:02:40,665 --> 00:02:42,685 and we're doing it all for the students in the future, 72 00:02:42,745 --> 00:02:43,845 the community indeed. 73 00:02:43,865 --> 00:02:45,285 - And to get us started, as we all know, 74 00:02:45,285 --> 00:02:47,845 the biggest percentage of a school district's budget goes 75 00:02:47,965 --> 00:02:50,285 to paying salaries for our teachers, bus drivers, 76 00:02:50,595 --> 00:02:52,325 paraeducators, child nutrition workers, 77 00:02:52,435 --> 00:02:54,925 maintenance personnel, administrators, custodians. 78 00:02:55,225 --> 00:02:56,685 It takes a lot of people. 79 00:02:56,785 --> 00:02:58,885 In fact, Bethel is the ninth largest 80 00:02:59,365 --> 00:03:00,445 employer in Pierce County. 81 00:03:00,625 --> 00:03:02,845 And part of what your team does is make sure everybody 82 00:03:02,845 --> 00:03:04,045 gets paid on time. 83 00:03:04,185 --> 00:03:06,445 - That's absolutely true. And in fact, I've heard it said 84 00:03:06,445 --> 00:03:08,085 that everybody says they're bad at math 85 00:03:08,085 --> 00:03:10,845 until their paycheck's just a little bit off, then all 86 00:03:10,845 --> 00:03:12,645 of a sudden they have a doctorate calculus. 87 00:03:12,935 --> 00:03:15,565 Brian, what are some of the most frequent questions you get 88 00:03:15,565 --> 00:03:16,645 from staff about payroll? 89 00:03:17,105 --> 00:03:19,525 - We do have a new employee orientation 90 00:03:19,555 --> 00:03:20,685 that does a great job 91 00:03:20,685 --> 00:03:23,045 of going over payroll, how it's calculated. 92 00:03:23,045 --> 00:03:24,405 However, that's like drinking from a 93 00:03:24,405 --> 00:03:25,445 fire hose for a new employee. 94 00:03:25,635 --> 00:03:27,325 They're thinking about a million other things. 95 00:03:27,905 --> 00:03:30,605 So some of the big questions, well maybe not big, 96 00:03:30,605 --> 00:03:33,405 but the coming up often is how am I getting paid 97 00:03:33,405 --> 00:03:35,245 during the summertime when I'm not working? 98 00:03:35,915 --> 00:03:38,365 Another one, what is FICA ? 99 00:03:39,675 --> 00:03:41,445 Some are have to do with what's the difference 100 00:03:41,445 --> 00:03:42,965 between a deduction and a benefit. 101 00:03:43,585 --> 00:03:45,085 Um, those are some of the common ones. 102 00:03:45,485 --> 00:03:46,645 I do wanna spend a minute 103 00:03:47,365 --> 00:03:49,125 'cause the biggest question again is 104 00:03:49,685 --> 00:03:52,365 I work this many hours in a month, why am I not getting paid 105 00:03:52,365 --> 00:03:53,885 for that many hours at the end of the month? 106 00:03:55,085 --> 00:03:58,365 'cause your annual salary is calculated by looking at 107 00:03:58,425 --> 00:04:01,965 how many days you work a year, how much you make per hour, 108 00:04:02,545 --> 00:04:05,205 and finding the number of hours per year, multiplying that 109 00:04:05,225 --> 00:04:07,765 by your pay rate and then dividing that by 12. 110 00:04:07,865 --> 00:04:12,125 So you get an even check every month for your position pay. 111 00:04:12,545 --> 00:04:15,685 On the classified side, a certificated side, 112 00:04:15,685 --> 00:04:17,605 it's an annual salary, so it's your annual salary. 113 00:04:18,125 --> 00:04:19,725 A salaried employee divided by 12. 114 00:04:20,145 --> 00:04:21,965 But then overtime hours are different than 115 00:04:21,965 --> 00:04:23,045 if you change positions. 116 00:04:23,045 --> 00:04:24,085 It gets complicated. 117 00:04:24,645 --> 00:04:27,445 I could go on, but there's many questions. 118 00:04:27,445 --> 00:04:28,725 Payroll does a great staff 119 00:04:28,945 --> 00:04:32,165 and we do pay over 2,700 employees a month 120 00:04:32,545 --> 00:04:34,805 and there's five payroll specialists who do that. 121 00:04:34,865 --> 00:04:37,885 So keep that in mind. We do have a some, a support team 122 00:04:37,905 --> 00:04:39,925 for them, but it's those five people paying 123 00:04:39,925 --> 00:04:41,565 2,700 employees per month. 124 00:04:41,705 --> 00:04:42,805 - And we here in communications, 125 00:04:42,805 --> 00:04:44,845 we actually work right next door to the payroll team. 126 00:04:44,845 --> 00:04:47,165 They're amazing people. Always open to answering questions 127 00:04:47,305 --> 00:04:49,325 and doing a lot of work over there. 128 00:04:49,325 --> 00:04:50,325 It's a heavy lift. 129 00:04:50,625 --> 00:04:52,725 Now I know for a fact on the first day of school, Brian, 130 00:04:52,725 --> 00:04:54,165 this year you were actually out at schools. 131 00:04:54,585 --> 00:04:56,085 You weren't there to teach kids accounting, 132 00:04:56,105 --> 00:04:58,525 but just to help out on the first day as needed. 133 00:04:58,915 --> 00:04:59,925 What was that like for you 134 00:04:59,945 --> 00:05:01,405 and is that something you get to do very often? 135 00:05:01,805 --> 00:05:04,485 - I enjoy that. Um, this is actually my third district 136 00:05:04,505 --> 00:05:05,925 and the other two are smaller. 137 00:05:05,985 --> 00:05:07,245 One is about half the size of this 138 00:05:07,245 --> 00:05:10,565 and one was even smaller than that In those districts. 139 00:05:10,605 --> 00:05:12,405 I actually got to see the students more. 140 00:05:12,665 --> 00:05:14,685 The district office was right next to the high school, 141 00:05:14,785 --> 00:05:15,965 my most recent district. 142 00:05:16,265 --> 00:05:19,965 And so you got some more involvement here, not so much. 143 00:05:19,985 --> 00:05:21,165 And as a bigger district, 144 00:05:21,185 --> 00:05:23,445 as more levels remove you, I do enjoy that. 145 00:05:23,745 --> 00:05:26,045 And remember we're doing everything we do is 146 00:05:26,045 --> 00:05:27,525 for the students and for their 147 00:05:27,685 --> 00:05:29,005 learning, for the development. 148 00:05:29,225 --> 00:05:32,165 So I like getting out there and talking to kids and, 149 00:05:32,185 --> 00:05:33,525 and just seeing what's going on. 150 00:05:34,065 --> 00:05:35,645 One of the schools I went to, it was neat. 151 00:05:35,765 --> 00:05:37,565 I got to help the kids on the first day 152 00:05:37,565 --> 00:05:38,845 of class find their classroom. 153 00:05:38,925 --> 00:05:41,685 I got handed a sheet of paper that had all the student names 154 00:05:41,985 --> 00:05:43,845 and all the classrooms and a map of the school. 155 00:05:44,145 --> 00:05:46,325 So that was kinda my highlight of the year so far, 156 00:05:46,545 --> 00:05:48,365 - The most overqualified hall monitor 157 00:05:48,625 --> 00:05:49,645 in our district . 158 00:05:50,305 --> 00:05:52,085 But let's get back to some budget talk if we can. 159 00:05:52,185 --> 00:05:55,045 Uh, Brian, what's the most common misconception people have 160 00:05:55,045 --> 00:05:57,085 when they talk about school district budgets? 161 00:05:57,435 --> 00:06:00,165 - Well, there's multiple misconceptions with budgets. 162 00:06:00,405 --> 00:06:02,005 I think a few I'll talk about, 163 00:06:02,165 --> 00:06:03,845 I can't just answer without with one. 164 00:06:04,465 --> 00:06:07,325 One of the most common misconceptions is 165 00:06:07,475 --> 00:06:08,685 that budgets are fixed. 166 00:06:09,515 --> 00:06:11,565 They think that's what's submitted to the state is 167 00:06:11,565 --> 00:06:12,805 how you're gonna spend all your money 168 00:06:12,805 --> 00:06:14,245 and how you're gonna receive all your money 169 00:06:15,355 --> 00:06:16,445 will think about this. 170 00:06:17,345 --> 00:06:19,685 Do you know what the cost of fuel's gonna be next year? 171 00:06:20,185 --> 00:06:22,525 Do you know how many miles our buses are gonna drive? 172 00:06:23,665 --> 00:06:25,885 Do you know what food's gonna cost next year? 173 00:06:26,145 --> 00:06:27,245 Do you know what parts 174 00:06:27,265 --> 00:06:29,205 of buildings are going to need repair? 175 00:06:29,225 --> 00:06:31,765 Do you know of a broiler that's gonna go out? 176 00:06:31,835 --> 00:06:33,325 There's so many variables. 177 00:06:33,745 --> 00:06:37,325 We look at trends over multiple years to make the budget. 178 00:06:37,985 --> 00:06:40,085 But again, it's not a fixed thing. 179 00:06:40,155 --> 00:06:42,925 It's it's variable and their guidelines 180 00:06:42,945 --> 00:06:44,245 and it's a projection in time. 181 00:06:44,515 --> 00:06:46,645 - That is a big one. People don't realize, I don't know 182 00:06:46,645 --> 00:06:47,605 what the price of gas is gonna be 183 00:06:47,725 --> 00:06:48,805 tomorrow, let alone next year. 184 00:06:48,865 --> 00:06:50,605 So that, that's gotta be a big thing 185 00:06:50,605 --> 00:06:51,805 for you all to forecast. 186 00:06:51,865 --> 00:06:53,365 Not to mention we don't know 187 00:06:53,365 --> 00:06:55,005 how many students we're gonna have on a given year. 188 00:06:55,065 --> 00:06:57,085 And funding is based on the number of kids you have? 189 00:06:57,385 --> 00:06:59,605 - Yes. Funding is based on the number of students we have 190 00:06:59,605 --> 00:07:01,045 and we actually report the number 191 00:07:01,045 --> 00:07:02,525 of students we have once a month. 192 00:07:02,985 --> 00:07:05,485 So in the budget we're projecting how much we're gonna have 193 00:07:05,485 --> 00:07:07,485 for the year, but that changes on a monthly basis. 194 00:07:07,785 --> 00:07:08,925 And our apportionment 195 00:07:08,945 --> 00:07:13,645 or how much money the state gives us changes monthly as we, 196 00:07:13,905 --> 00:07:16,285 the following month is we report the numbers for enrollment 197 00:07:16,505 --> 00:07:18,965 and then at the end of the year they average all the 198 00:07:18,965 --> 00:07:19,965 enrollment for all the months 199 00:07:19,965 --> 00:07:21,605 and they true us up to a number. 200 00:07:21,745 --> 00:07:23,405 So even revenue, our biggest portion 201 00:07:23,425 --> 00:07:25,045 of revenue is variable. So 202 00:07:25,045 --> 00:07:26,685 - With all that money coming in, we can at least just 203 00:07:26,695 --> 00:07:28,045 spend it where we want to. Right. 204 00:07:28,555 --> 00:07:31,005 - Well no, that's not exactly correct either. 205 00:07:31,065 --> 00:07:32,765 And in fact, that's another misconception. 206 00:07:33,205 --> 00:07:35,005 A lot of members of the public think 207 00:07:35,005 --> 00:07:36,685 that the revenue's interchangeable. 208 00:07:36,785 --> 00:07:39,045 But the truth is we have both unrestricted 209 00:07:39,065 --> 00:07:40,165 and restricted revenue. 210 00:07:40,705 --> 00:07:43,045 And the unrestricted revenue, which is about two thirds 211 00:07:43,045 --> 00:07:45,245 of our revenue, can be spent on any 212 00:07:45,275 --> 00:07:47,005 allowable activity of the school district. 213 00:07:47,005 --> 00:07:50,525 So as long as it's allowable by law for district spend. 214 00:07:50,585 --> 00:07:53,765 So we could pay salaries, we could repair buildings, 215 00:07:53,765 --> 00:07:56,045 we could buy district buses, anything 216 00:07:56,045 --> 00:07:57,325 that's allowable textbooks. 217 00:07:57,325 --> 00:07:59,285 But then we have unrestricted funds 218 00:07:59,465 --> 00:08:02,005 and I like to compare these to like store gift cards. 219 00:08:02,665 --> 00:08:05,245 So if you have an Olive Garden gift card, great, 220 00:08:05,265 --> 00:08:08,565 you can buy food but only certain types of food, 221 00:08:08,925 --> 00:08:10,085 prepared food at a restaurant. 222 00:08:10,355 --> 00:08:11,405 Subways the same way. 223 00:08:11,745 --> 00:08:13,965 You got a Footlocker card, you can buy shoes 224 00:08:14,785 --> 00:08:17,085 but you can't pay your mortgage or rent with that 225 00:08:17,505 --> 00:08:20,325 and you can't repair your vehicle with that. 226 00:08:20,885 --> 00:08:22,725 Restricted funds are like that and that's about one third 227 00:08:22,725 --> 00:08:24,045 of the total revenue we get. 228 00:08:24,345 --> 00:08:27,565 And a subset of that are grants. 229 00:08:28,305 --> 00:08:30,765 Grants are where you have to spend the money first 230 00:08:30,785 --> 00:08:32,845 and you get reimbursed for the expenditure. 231 00:08:32,845 --> 00:08:35,125 And there's actually more strings attached with those. 232 00:08:35,465 --> 00:08:38,885 And they range from the smallest, about $350 233 00:08:38,905 --> 00:08:41,805 to the larger ones, about 4.1 million for Title one. 234 00:08:42,265 --> 00:08:45,045 And we have over 70 individual grants we 235 00:08:45,045 --> 00:08:46,125 have to manage annually. 236 00:08:46,355 --> 00:08:48,685 - Okay. That is a lot of information to take in. 237 00:08:48,865 --> 00:08:51,245 I'm thinking my charts and graphs now are probably 90% 238 00:08:51,245 --> 00:08:52,525 wrong, so I'm gonna discard those. 239 00:08:52,865 --> 00:08:54,205 It seems like every time we've talked 240 00:08:54,205 --> 00:08:56,965 to you in the past year, years since you've been here, 241 00:08:56,975 --> 00:08:58,445 we've talked about regionalization 242 00:08:58,585 --> 00:08:59,805 and that is a big change 243 00:08:59,805 --> 00:09:02,125 that's happened this past legislative session 244 00:09:02,225 --> 00:09:03,645 and went into effect this year. 245 00:09:03,665 --> 00:09:07,205 Bethel now gets 6% regionalization, which helps, 246 00:09:07,585 --> 00:09:09,165 but it doesn't fix the problem 247 00:09:09,165 --> 00:09:11,925 because there's a bigger problem than just that. Well 248 00:09:11,925 --> 00:09:12,925 - That is correct. 249 00:09:13,145 --> 00:09:16,885 In the state of Washington we have a somewhat regressive 250 00:09:17,845 --> 00:09:19,805 allocation that's calculated by the state for 251 00:09:19,805 --> 00:09:21,645 how much individual districts get 252 00:09:22,215 --> 00:09:24,685 where some states they have a progressive model 253 00:09:25,095 --> 00:09:27,125 where districts in the poor areas 254 00:09:27,145 --> 00:09:30,605 of their state get more state funding to compensate 255 00:09:30,705 --> 00:09:32,525 for social economic differences. 256 00:09:32,525 --> 00:09:33,525 Between districts 257 00:09:33,825 --> 00:09:37,645 and Washington, we get mostly flat funded. 258 00:09:37,785 --> 00:09:40,525 That's kind of the goal of the legislature overall. 259 00:09:40,905 --> 00:09:43,525 But they do have regionalization, which is part 260 00:09:43,525 --> 00:09:44,605 of the prototypical formula. 261 00:09:44,825 --> 00:09:46,605 So to figure out how much money goes 262 00:09:46,605 --> 00:09:51,125 to individual districts, which means those districts 263 00:09:51,125 --> 00:09:53,285 that on average have wealthier 264 00:09:53,285 --> 00:09:54,885 households are getting more money. 265 00:09:55,405 --> 00:09:57,885 - I thought the motivation behind that was uh, 266 00:09:57,915 --> 00:09:59,085 kind of staff based. 267 00:09:59,265 --> 00:10:01,365 So the staff that have to live in those areas 268 00:10:01,425 --> 00:10:03,605 to work in those areas would need to be paid more 269 00:10:03,605 --> 00:10:04,805 so they can afford those areas. 270 00:10:05,155 --> 00:10:07,365 It's is that the mindset that they had going into this 271 00:10:07,365 --> 00:10:08,485 but it's creating a different problem? 272 00:10:08,985 --> 00:10:11,125 - Yes, that is the mindset and that is logical. 273 00:10:11,125 --> 00:10:14,805 However, when you look at nationwide studies that are done 274 00:10:14,805 --> 00:10:18,165 by experts in the education field, the number one predictor 275 00:10:18,165 --> 00:10:21,045 of student outcome is actually social economic 276 00:10:21,095 --> 00:10:22,365 background of the student. 277 00:10:22,625 --> 00:10:25,525 So those students that come from poor areas all across the 278 00:10:25,525 --> 00:10:28,645 country and the state of Washington perform lower. 279 00:10:28,705 --> 00:10:31,445 And those that come from more wealthy areas perform better. 280 00:10:32,025 --> 00:10:34,565 So if you want to bring up those poor performing students, 281 00:10:34,585 --> 00:10:36,085 you need to put more resources there. 282 00:10:36,085 --> 00:10:37,485 And we're actually doing the opposite. 283 00:10:37,735 --> 00:10:39,565 We're putting more, more dollars in 284 00:10:39,565 --> 00:10:40,645 those wealthy communities. 285 00:10:40,985 --> 00:10:45,485 On top of that, in the state of Washington, a sizable chunk 286 00:10:45,485 --> 00:10:46,525 of money from 10 287 00:10:46,525 --> 00:10:49,925 to 20% per district comes from the local levy. 288 00:10:50,395 --> 00:10:53,365 Well those areas that have higher property values have the 289 00:10:53,365 --> 00:10:56,005 ability to collect more money, both per student 290 00:10:56,065 --> 00:10:58,245 and actual dollars from those local levies. 291 00:10:58,665 --> 00:11:01,925 So it's another thing in Washington that makes funding 292 00:11:02,445 --> 00:11:04,605 actually regressive and not progressive. 293 00:11:05,105 --> 00:11:06,325 - That's really fascinating. 294 00:11:06,425 --> 00:11:07,885 Uh, you did mention levee, 295 00:11:07,885 --> 00:11:09,205 so let's talk a little bit more about that. 296 00:11:09,505 --> 00:11:11,245 So when we're looking at our general fund 297 00:11:11,245 --> 00:11:14,725 where most things are paid out, 73.5% of the budget, 298 00:11:14,755 --> 00:11:17,925 it's coming from the state, 12.1 from our local levies 299 00:11:17,925 --> 00:11:20,245 and 14.1% from the federal government. 300 00:11:20,395 --> 00:11:21,725 With that said, thank you voters 301 00:11:21,825 --> 00:11:24,605 and to our taxpayers, we couldn't do this without you. 302 00:11:24,735 --> 00:11:28,005 Everything added up that's about $354 million. 303 00:11:28,295 --> 00:11:30,685 Percentage wise, where does that all go? 304 00:11:30,995 --> 00:11:33,965 - Like we talked about before, most of it goes to salaries 305 00:11:33,965 --> 00:11:36,565 and benefits of employees varies per year, 306 00:11:36,565 --> 00:11:37,805 but somewhere between 83 307 00:11:37,805 --> 00:11:42,605 and 86% less than 5% goes to supplies and materials. 308 00:11:43,145 --> 00:11:45,645 We have about 12% that go to purchase services 309 00:11:45,705 --> 00:11:47,925 and that's all of our utility bills. 310 00:11:48,105 --> 00:11:51,365 But it's also areas where we can't hire expertise. 311 00:11:51,385 --> 00:11:52,925 So when we have to hire a law firm 312 00:11:53,105 --> 00:11:56,205 and sometimes in the special education arena, we're unable 313 00:11:56,205 --> 00:11:57,525 to hire certain personnel. 314 00:11:57,545 --> 00:11:59,285 So we contract out for those services 315 00:12:00,025 --> 00:12:03,045 and then less than 1% for capital outlay and travel. 316 00:12:03,585 --> 00:12:05,765 That's one way of looking at where that money goes. 317 00:12:05,875 --> 00:12:08,165 Another way of looking where the same dollars goes is 318 00:12:08,165 --> 00:12:09,965 to break it by kind of activity. 319 00:12:10,665 --> 00:12:14,405 So what is being done as a whole, both with the people in 320 00:12:14,405 --> 00:12:15,565 that area and the supplies 321 00:12:15,665 --> 00:12:18,325 and purchase services you need to spend in that area. 322 00:12:18,625 --> 00:12:19,765 And if you look from that way, 323 00:12:20,355 --> 00:12:23,445 instruction is about 75% of where the money goes. 324 00:12:23,895 --> 00:12:25,405 About two and a half percent goes 325 00:12:25,405 --> 00:12:30,085 to district-wide administration, uh, about 3% 326 00:12:30,345 --> 00:12:34,885 to food services, another 5% to instructional support. 327 00:12:34,905 --> 00:12:37,005 So that's like training the teachers how to teach 328 00:12:37,005 --> 00:12:38,925 and then the technology that supports them. 329 00:12:39,425 --> 00:12:40,925 Uh, maintenance and operations. 330 00:12:41,245 --> 00:12:43,365 'cause we have over 30 school buildings 331 00:12:43,365 --> 00:12:46,365 and some support buildings will go to a maintenance 332 00:12:46,365 --> 00:12:48,365 and operations support of those buildings. 333 00:12:48,365 --> 00:12:50,645 Those are the big areas. Pupil transportation, 334 00:12:51,535 --> 00:12:52,725 maybe about 5%. 335 00:12:52,905 --> 00:12:54,965 - So notice in that you haven't mentioned any type 336 00:12:54,965 --> 00:12:57,285 of new school construction or, or anything like that. 337 00:12:57,425 --> 00:13:00,085 So is that bond budget kept completely separate 338 00:13:00,235 --> 00:13:01,485 from our regular budget? 339 00:13:01,755 --> 00:13:04,325 - That is um, I don't want any to get into the details 340 00:13:04,325 --> 00:13:05,605 of governmental accounting, 341 00:13:05,985 --> 00:13:08,285 but there's generally accepted accounting principles 342 00:13:08,705 --> 00:13:11,485 and the government accounting standards board sets those 343 00:13:11,485 --> 00:13:12,685 principles on how we do that. 344 00:13:12,685 --> 00:13:14,365 And then the state legislature 345 00:13:14,365 --> 00:13:16,485 of Washington also puts some rules on top of that. 346 00:13:17,025 --> 00:13:18,725 But school construction is not the 347 00:13:18,725 --> 00:13:20,045 general activity of the school district. 348 00:13:20,045 --> 00:13:21,685 So we do that in a totally different fund. 349 00:13:22,265 --> 00:13:24,245 We call it our capital projects fund. 350 00:13:24,545 --> 00:13:26,165 We keep both the revenue for that 351 00:13:26,225 --> 00:13:28,525 and the expenditures separate from the general fund. 352 00:13:28,905 --> 00:13:31,965 So when we sell bonds, when the voters approve bonds 353 00:13:31,965 --> 00:13:34,325 and we sell them, the revenue goes directly 354 00:13:34,325 --> 00:13:35,645 to the capital projects fund. 355 00:13:36,225 --> 00:13:39,125 We also pay for our tech levy out 356 00:13:39,125 --> 00:13:40,245 of the capital projects fund. 357 00:13:40,445 --> 00:13:42,805 'cause the state legislature has guided 358 00:13:42,805 --> 00:13:43,845 us to set it up that way. 359 00:13:44,395 --> 00:13:46,565 - Well Brian, that has been a lot of numbers 360 00:13:46,665 --> 00:13:49,205 and percentages in a very short period of time. 361 00:13:49,295 --> 00:13:51,925 Let's give everybody's brains a break for just a second. 362 00:13:52,155 --> 00:13:54,805 What got you into the financial world in the first place? 363 00:13:54,835 --> 00:13:57,045 Were you always drawn to the mathematical arts? 364 00:13:57,685 --> 00:13:59,165 - I don't know if I was drawn to them. 365 00:13:59,285 --> 00:14:01,165 I think we all have strengths 366 00:14:01,165 --> 00:14:03,645 and weaknesses as kind of an aptitude growing up. 367 00:14:03,645 --> 00:14:05,085 Math always came easy to me. 368 00:14:05,625 --> 00:14:08,125 No one, I think dreams of being a uh, 369 00:14:08,215 --> 00:14:10,565 chief financial officer for a school district 370 00:14:10,705 --> 00:14:12,925 or chief business Officer or anything like that. 371 00:14:13,505 --> 00:14:15,885 It just, life happens and you end up there. 372 00:14:15,885 --> 00:14:19,325 When I was young, I wanted to be at one point a firefighter. 373 00:14:19,645 --> 00:14:21,805 I don't know if you remember back in the seventies, 374 00:14:22,085 --> 00:14:24,445 probably when I was five or sixth, my favorite TV show was 375 00:14:24,475 --> 00:14:27,565 emergency and wanted that then, um, 376 00:14:27,565 --> 00:14:30,685 professional football player, I used to run, you know, 377 00:14:30,685 --> 00:14:32,925 with my best friend who lived a few houses down the street 378 00:14:33,065 --> 00:14:36,205 routes and I pretend like I was like Johnny Jefferson 379 00:14:36,205 --> 00:14:38,285 or Steve Largent running routes and catching. 380 00:14:38,285 --> 00:14:40,245 But then my high school, I did play football. 381 00:14:40,285 --> 00:14:42,125 I tore my ACL so the odds were 382 00:14:42,125 --> 00:14:43,245 against I'd never make football. 383 00:14:43,245 --> 00:14:44,605 The odds are just against everybody. 384 00:14:44,985 --> 00:14:46,325 But I had no chance with that. 385 00:14:46,625 --> 00:14:48,845 The other thing I wanted to do is become a commercial pilot, 386 00:14:49,505 --> 00:14:53,365 but my poor vision, uncorrected vision didn't allow me 387 00:14:53,365 --> 00:14:56,805 to join the Air Force or any military forces which 388 00:14:56,805 --> 00:14:59,885 where you can really learn to become a pilot at a, you know, 389 00:14:59,885 --> 00:15:01,005 where the government pays for it. 390 00:15:01,005 --> 00:15:02,645 Otherwise it's really cost prohibitive. 391 00:15:03,065 --> 00:15:05,805 During college, I wasn't exactly sure 392 00:15:05,805 --> 00:15:06,965 what I wanted my major to be. 393 00:15:07,825 --> 00:15:11,085 My strengths were math, but that was not really my interest. 394 00:15:11,145 --> 00:15:12,925 My interests were more the sciences 395 00:15:12,985 --> 00:15:14,725 and part of me thought, 396 00:15:14,725 --> 00:15:17,125 well maybe thinking about becoming a doctor, 397 00:15:17,125 --> 00:15:19,445 thinking about becoming a physician's assistant, 398 00:15:19,445 --> 00:15:21,005 thinking about a physical therapist, 399 00:15:21,005 --> 00:15:22,805 something in those areas which you know, 400 00:15:22,805 --> 00:15:24,965 have good job opportunities, a lot 401 00:15:24,965 --> 00:15:26,605 of schooling Well in those number of years. 402 00:15:27,105 --> 00:15:30,565 Um, I took a emergency medical technician class 403 00:15:31,185 --> 00:15:34,245 and I started to work on a local rescue ambulance 404 00:15:34,625 --> 00:15:37,485 and I ended up staying there way longer than I had planned. 405 00:15:37,685 --> 00:15:39,925 I ended up working there for 16 years. 406 00:15:39,935 --> 00:15:41,245 There were some mergers 407 00:15:41,245 --> 00:15:42,925 and acquisitions in the company changed, 408 00:15:43,505 --> 00:15:46,965 but I had never finished my college degree 409 00:15:47,875 --> 00:15:49,325 immediately after high school. 410 00:15:49,785 --> 00:15:51,245 But about eh seven 411 00:15:51,245 --> 00:15:53,965 or eight years into working on a rescue ambulance, 412 00:15:54,605 --> 00:15:56,365 I figured well I need to go back to school 413 00:15:56,385 --> 00:15:57,405 and finish my degree. 414 00:15:57,745 --> 00:16:01,245 But my initial degree was gonna be in biochemistry 415 00:16:01,625 --> 00:16:03,925 and I kind of, after years in this, I decided no, 416 00:16:03,925 --> 00:16:06,605 that I need to figure out what I really want to do 417 00:16:07,185 --> 00:16:08,565 if I'm not gonna work on the ambulance. 418 00:16:08,645 --> 00:16:10,245 A lot of people they end up going 419 00:16:10,245 --> 00:16:12,645 to fire services like I did think about that, 420 00:16:12,705 --> 00:16:15,205 but I decided that's not the route I really wanted to go. 421 00:16:16,025 --> 00:16:20,485 And so I looked at the federal government does a national 422 00:16:20,695 --> 00:16:22,245 occupation outlook guide 423 00:16:22,785 --> 00:16:24,965 and where can you make the most money 424 00:16:25,075 --> 00:16:28,165 with the most job openings with a bachelor's degree. 425 00:16:28,785 --> 00:16:30,245 The first three things were three 426 00:16:30,245 --> 00:16:31,445 different types of engineers. 427 00:16:31,825 --> 00:16:34,445 And I was like, I took through calculus three, 428 00:16:34,525 --> 00:16:36,525 I don't really want to take differential equations 429 00:16:36,525 --> 00:16:37,845 and that's not really my interest. 430 00:16:38,265 --> 00:16:39,925 Number four was accounting. 431 00:16:40,885 --> 00:16:42,645 I go, huh, that doesn't seem that hard. 432 00:16:42,875 --> 00:16:45,725 Over the years I'd had an interest in watching markets 433 00:16:45,905 --> 00:16:47,725 and how the economy works and everything else. 434 00:16:48,265 --> 00:16:50,965 And so I went back to school while I was working full-time, 435 00:16:51,185 --> 00:16:54,525 um, two days a week to get an accounting degree. 436 00:16:54,525 --> 00:16:56,525 Technically it's a degree in administration 437 00:16:56,525 --> 00:16:58,285 with a concentration in accounting. 438 00:16:58,585 --> 00:17:01,165 And I got two other concentrations to finance, 439 00:17:01,255 --> 00:17:03,165 which I actually find a little bit 440 00:17:03,165 --> 00:17:04,645 more interesting than accounting. 441 00:17:04,945 --> 00:17:07,045 But they go together and then real estate 442 00:17:07,145 --> 00:17:08,725 as the concentrations go with it. 443 00:17:08,865 --> 00:17:11,485 My favorite classes in that world were actually economics. 444 00:17:11,485 --> 00:17:13,045 You had to take a number of economics courses 445 00:17:13,105 --> 00:17:14,125 in that arena too. 446 00:17:14,345 --> 00:17:15,685 And I won't get into all the details 447 00:17:15,745 --> 00:17:17,485 how I actually ended up in a school district, 448 00:17:17,865 --> 00:17:19,965 but it started with the accounting degree. 449 00:17:20,465 --> 00:17:22,605 - Wow, that is an incredible background. 450 00:17:23,345 --> 00:17:24,765 Really interesting to hear about. 451 00:17:24,905 --> 00:17:27,845 I'm wondering if you have a PG to PG 13 452 00:17:28,475 --> 00:17:30,125 ambulance story you can share with us. 453 00:17:30,675 --> 00:17:33,245 - Well at the time I was working in California 454 00:17:33,345 --> 00:17:36,285 and the ambulance service provided services in Ventura 455 00:17:36,425 --> 00:17:39,485 and the very west end of Los Angeles County. 456 00:17:40,025 --> 00:17:43,485 And I had a number of celebrities, I can't mention the names 457 00:17:43,795 --> 00:17:46,925 that we provided services for that were in the ambulance 458 00:17:46,945 --> 00:17:49,405 for different reasons, including overdoses. 459 00:17:49,905 --> 00:17:51,365 - Wow. That is quite the revelation. 460 00:17:51,425 --> 00:17:52,605 I'm really glad I asked that question. 461 00:17:52,665 --> 00:17:54,325 The seedy side of Hollywood. 462 00:17:54,685 --> 00:17:57,445 Connor, that was my last question. Do you have any left? Of 463 00:17:57,445 --> 00:17:58,445 - Course. 464 00:17:58,445 --> 00:17:59,845 And I've put them all together in a little segment. 465 00:18:00,165 --> 00:18:04,805 I like to call the lightning round. Ryan, are you ready? 466 00:18:05,345 --> 00:18:08,445 - I'm ready. What - Is your ideal temperature outside 467 00:18:08,635 --> 00:18:09,635 - 72. 468 00:18:09,665 --> 00:18:11,765 - What's your favorite movie about accounting 469 00:18:11,865 --> 00:18:13,405 or math or anything with numbers? 470 00:18:13,865 --> 00:18:16,285 - The accountant. - What's your favorite comfort? Food? 471 00:18:16,495 --> 00:18:19,005 - Pizza. - Is it wrong for a vegetarian 472 00:18:19,105 --> 00:18:20,245 to eat animal crackers? 473 00:18:20,985 --> 00:18:22,845 - No. - , what was your first job? 474 00:18:23,605 --> 00:18:26,485 - I worked at uh, six Flags Magic Mountain in amusement park 475 00:18:26,485 --> 00:18:27,765 that worked in the games area. 476 00:18:28,275 --> 00:18:30,565 - Dogs or cats? - I have both 477 00:18:30,665 --> 00:18:32,925 and I actually am not gonna make that decision 478 00:18:32,925 --> 00:18:34,525 because someone will be unloved. 479 00:18:35,105 --> 00:18:37,405 - What's the place you most want to travel to? 480 00:18:39,815 --> 00:18:42,605 - Italy. Have - You ever ridden a segway? 481 00:18:43,185 --> 00:18:46,845 - No, I have not. Um, I've ridden those hoverboards 482 00:18:46,845 --> 00:18:49,285 and almost killed myself, so I don't know if it'd be close, 483 00:18:49,285 --> 00:18:51,405 but a hover, uh, segue's supposed to be way easier. 484 00:18:51,815 --> 00:18:53,645 - Would you rather come face to face 485 00:18:53,675 --> 00:18:56,765 with a miniature hippopotamus or a giant cockroach? 486 00:18:57,325 --> 00:18:58,325 - A giant cockroach. 487 00:18:58,565 --> 00:18:59,925 I know I could kill it even though it's a 488 00:18:59,925 --> 00:19:01,165 giant cockroach . 489 00:19:04,225 --> 00:19:05,925 - And that's the end of the lightning round. 490 00:19:06,065 --> 00:19:08,565 You did very well. Brian. I'm gonna give you 10 points. 491 00:19:09,005 --> 00:19:10,845 - I I think there were only nine questions. 492 00:19:11,195 --> 00:19:12,805 - Okay, then let's add a 10th question 493 00:19:12,805 --> 00:19:14,685 and circle back around to the top of the show 494 00:19:14,715 --> 00:19:16,365 with our Brewsters millions. 495 00:19:16,605 --> 00:19:19,525 Question. Brian, if you had a million bucks to spend today 496 00:19:20,265 --> 00:19:22,125 and you had to spend it by the end of the day 497 00:19:22,185 --> 00:19:24,325 or your mortal enemy got the money, 498 00:19:24,825 --> 00:19:25,885 how would you spend that money? 499 00:19:26,565 --> 00:19:29,565 - A broadly diversified mutual fund And I could live off 500 00:19:29,565 --> 00:19:30,885 the earnings off that. 501 00:19:30,945 --> 00:19:33,605 Or is it grows in value? I could take that out . 502 00:19:33,985 --> 00:19:36,445 - That's the kind of wise business decision you can expect 503 00:19:36,445 --> 00:19:38,605 from a school district CFO. 504 00:19:38,935 --> 00:19:40,445 Brian, thanks for joining us today 505 00:19:40,505 --> 00:19:43,045 and thank you so much for the work that your team does. 506 00:19:43,345 --> 00:19:44,725 We loved having you on the show. Thank 507 00:19:44,725 --> 00:19:45,725 - You very much. 508 00:19:45,725 --> 00:19:46,145 It was enjoyable. 509 00:19:48,945 --> 00:19:50,925 - And that's gonna wrap up this week's show. 510 00:19:51,125 --> 00:19:53,445 Connor, we started the show talking about a million dollars. 511 00:19:53,505 --> 00:19:55,205 If you had it in your pocket, what would you spend it on? 512 00:19:55,545 --> 00:19:58,805 You never got around to asking me what I would spend it on. 513 00:19:58,855 --> 00:20:01,365 Don't you wanna know? No. Well that's too bad. 514 00:20:01,465 --> 00:20:03,085 I'm gonna tell you anyway. I would rent 515 00:20:03,085 --> 00:20:04,365 the services of one Mr. 516 00:20:04,505 --> 00:20:06,005 Gerald Seinfeld. 517 00:20:06,215 --> 00:20:07,645 Jerry as I like to call him 518 00:20:07,845 --> 00:20:08,885 'cause we're we're cool like that. 519 00:20:09,305 --> 00:20:11,685 I'd have him come out, drive me around in a fancy car 520 00:20:11,685 --> 00:20:13,965 and we'd just chat and probably have somebody film us. 521 00:20:14,185 --> 00:20:16,765 - Oh, kind of like comedians in cars getting coffee. 522 00:20:17,155 --> 00:20:20,565 - Exactly. Except it'd be podcasters in a pinto. 523 00:20:20,715 --> 00:20:21,965 Getting panchetta. 524 00:20:22,325 --> 00:20:24,605 - I like the sound of that. And now I'm hungry. Well, 525 00:20:24,605 --> 00:20:27,205 - There's a IHOP right down the street. Let's go there now. 526 00:20:27,665 --> 00:20:28,085 - Deuces.