Angela Ortega shared that the projected net income of $8K is below goal due to the decrease in grant allocations, state funding and enrollment gap. The debt service coverage ratio is 1.44 and the days cash on hand is 113.85.

Development Update:

We are projecting a shortfall for 4th quarter of $40k in ambassadors/individual giving.

Marketing Update: 

We are maintaining an 84% stability for enrollment. Surveys have been sent out to gauge the return rate of scholars. New enrollments are 30% below from last years numbers. We have hired an additional recruiter to canvass and follow up and have included daily check in for leads.  

Becky- Has created a fun competition for her K-8 team. The class that returns 100% of surveys for next year will win a prize. Her front office team has called all parents that did not submit a survey. The team has either left a voicemail or the number is not in service any longer.  

Brandi- Suggested we should focus on retention vs new students. If student does withdraw then we should follow up with a check-in after 1 week to see how things are going. Instead of calling parents we should send out a mass text and we might get better responses as text is now the preferred method. We could have extended gym hours during the summer so scholars are engaged on campus during the summer break. We could possibly start a newsletter to send with upcoming events. Promote grade level meet ups to avoid the wandering eye. Preparing new families with clear instruction of start/end times, supplies list and uniform expectations so families are and feel ready. 

Playbooks Update: 

We are on schedule and have 90 % of all procedures documented by 6/30/24. They system will be ready in place when we have enough students to duplicate ECP. 

Angela Ortega informed the board that FY25 budget is expected decrease compared to FY24. 

The FY24 budget was projected with a count of 1190 students instead of 1150 resulting in an inflated budget. 

The reduction is attributed to the $1.5M grants (governor’s grant, preschool capital campaign, and A for Arizona grant) going away. To off set this loss we have six central office positions that were eliminated. Additionally each school has eliminated 1-2 positions. We have transitioned from an in house psychologist to a contracted psychologist. Food prices increase but with reimbursement, it will break even. Transportation: Included contracted service with Abundant and in-house van drivers –Depreciation: Decrease by about 50K with the transfer of the buses to Abundant

–Contingency: Lower than previous year.

The projected capital improvement budget for next year is $75k which means about $450K would be added to reserves. The cost would go towards repainting the fence and the exterior of buildings. This will keep our building looking new, clean and refreshed. 

Steve- Added that first impressions are everything and we only have one chance. Maintaining the school updated will help us in the long run. Maybe adding more curb appeal (flowers at the entrance) will do wonders with first impressions. 

We are not anticipating any new construction costs.