(0:00) Or from Duke, Dallenton on the weekday wake up. (0:03) When’s the last time you had a bath? (0:05) Rolling into our guest interview segment for the hour this morning (0:08) here at eight thirty five on the weekday wake up monthly report (0:11) from Lincoln County School District number two superintendent (0:13) Matt Erickson in studio this morning, along with the director of finance. (0:17) That’s J.C. (0:17) Inskey in the studio as well for LCSD number two superintendent (0:21) and J.C. Mr. Inskey.

(0:24) Good morning. (0:24) How are you guys doing today? (0:25) Good morning, Duke. (0:26) We’re doing well.

(0:27) Grateful to be here. (0:28) Thanks for having us on. (0:29) I absolutely appreciate you stepping in studio as always.

(0:32) And before we really dive into our topic today, I do want to give you a chance (0:35) to recognize some changes in admin across the district, some (0:40) principals and different things like that announced at the last school board meeting. (0:44) Yeah, thanks. (0:45) That’s a that’s a great lead in Duke.

(0:47) So let’s focus on all of the the good and the positive things (0:51) that are happening first. (0:52) But yeah, we’re really excited and happy to bring Crystal (0:55) Engen on as the new principal at Aetna Elementary. (0:58) And then Mr. (0:59) Dave Saltzman, who’s been the principal at Aetna the last three years, (1:03) is moving to the middle school, Star Valley Middle School, (1:07) to take over as assistant principal and athletic director.

(1:11) And then obviously Jake Rich is moving from that spot (1:15) to to be the principal next year. (1:18) So we’re very excited. (1:21) Three young, wonderful people, high integrity people with great work (1:26) ethic and and people that love kids and can inspire (1:32) and motivate teachers and staff.

(1:34) And and so we feel very fortunate (1:37) and we’re very, very blessed that they came through the ranks. (1:41) You know, Jake’s obviously from here and and received some great training (1:45) in Pinedale and Evanston and Little Snake River. (1:48) And I believe Crystal’s been with us for 19 years.

(1:53) I had the privilege of working with Mrs. (1:56) Engen for several years at Osmond Elementary and then Dave Saltzman. (2:01) He’s obviously started in the district at Swift Creek High School (2:05) and then transitioned to Star Valley High as a teacher before becoming an admin. (2:10) So we love to grow our own and we’re grateful to have him.

(2:16) A very familiar last name to take the helmet (2:18) wrestling as well for Star Valley High School. (2:21) Brig Hoops announces the the next head wrestling coach. (2:23) Isn’t that fantastic to have an alumni come back and be a head coach (2:27) of one of our very successful programs? (2:30) And yeah, we’re super excited for Brig and the skill set and, (2:35) you know, the values and what his he’ll offer.

(2:38) And, you know, Coach Clark and others obviously mentored (2:42) and coached him in high school. (2:43) And he’s been at Southern Virginia University the last few years. (2:47) And no, we’re super excited.

(2:49) He was here yesterday getting some loose ends tied up (2:52) and going to teach PE and health at Star Valley High. (2:55) And so, you know, a lot of great things happening. (2:58) Absolutely.

(2:59) Well, Superintendent, let’s get into some more of the topic today (3:02) regarding the recalibration bill we touched on this last interview (3:05) and want to give you a chance to weigh on it some more. (3:08) Maybe just remind our listeners again what this is about. (3:11) OK, so this is very, very complicated, but we’ll try to (3:15) JC and I try to make it as simple as possible this morning.

(3:19) And and we’re just going to scratch the surface on it. (3:22) But basically it was recalibration, which takes place every five years. (3:28) And there’s a committee of 12 (3:32) representatives and senators from across the state.

(3:35) So they spent the last year studying school finance (3:39) with some consultants. (3:40) And as a result, we had Senate File 81, (3:45) which is school recalibration finance. (3:49) And there’s a handful of positives that are a result of that, (3:52) which JC is going to explain on the silo.

(3:57) But several challenges, I guess, is the way I would word it. (4:00) And and the major challenge is that, (4:03) you know, 93 legislators or so, the majority of them (4:07) that come from one from one platform (4:12) felt that it was best to have one local school board out of Cheyenne (4:18) than to have 48 school boards. (4:21) So we lost local control.

(4:23) The vast majority of our local control, which means that we lost our flexibility. (4:28) So when it comes to the finance side, basically what we we’ve been operating (4:31) under a block grant, which our general fund monies would come to a local district (4:36) and then local school boards (4:40) with admin teams could make the best decisions for local communities. (4:44) And we’ve been very, very blessed and fortunate the last several years, (4:48) obviously, to have JC as our director of finance and very conservative, (4:52) but understands the model (4:56) very, very deep and all the complexities of it.

(5:00) Then we’ve had great school board members. (5:02) You know, you look at the Wade Hershey’s and I shouldn’t even name names (5:07) because there’s so many great ones. (5:09) You know, the Mike Hunsaker’s and Eileen’s and the Donna’s and on and on and on (5:14) that fiscally conservative.

(5:16) And we’ve had our districts in a great position (5:20) with our carryovers and whatnot. (5:21) But we lost our flexibility and local control with the block grant. (5:25) And now we have what’s called a teacher silo or an instructional silo.

(5:30) And as a result of that, I don’t know if it was intended or unintended, (5:34) but it basically created multiple smaller silos. (5:39) So by losing that flexibility, I’d just give you one example (5:44) when it comes to activities. (5:46) And I know that there’s been we’ve had a lot of meetings (5:49) and there’s been a little bit of a hubbub about what are we going to do (5:52) for activity funding and and whatnot.

(5:54) But currently it’s been this way for the last couple of decades. (6:01) When it comes to activity funding, it’s based on the school’s (6:06) ADM or average daily membership starting July one. (6:10) That goes to a district level ADM or average daily membership.

(6:16) So just to put it in layman’s terms, if you look at you take Cokeville High, (6:21) the snapshot for a school ADM is snapped on October 1st of each year. (6:27) So this last fall, Cokeville High had 69 kids. (6:32) So on a prorated scale, they received or the district received (6:37) a little over twenty six hundred dollars for every student at Cokeville High (6:41) to go towards activities.

(6:43) Star Valley High, with a little over 800 kids on October 1st (6:48) on the prorated scale, was a little over a thousand dollars. (6:52) Now, starting July one, as a result of recalibration (6:55) and losing our flexibility and local control, (6:59) activity funding is based on the district’s average daily membership. (7:04) And there’s two two cutoffs districts five hundred and below (7:09) and the districts 2000 and above.

(7:12) So obviously we’re in the 2000 and above with twenty eight hundred (7:15) and fifty kids in the district. (7:17) So that takes our activity funding at Cokeville and Star Valley (7:21) Highs to eight hundred and thirty three dollars. (7:25) So that’s a loss of two hundred and seventy six thousand five hundred (7:31) and sixty four dollars for activities alone.

(7:35) So we’re in the whole activities. (7:38) The district’s obviously been subsidizing for several years. (7:42) So we’re down about six hundred thousand dollars.

(7:45) Between the two high schools for activity funding. (7:48) So that’s just one example of how we’ve lost local control. (7:52) And with the silo, all your operating costs outside the silo (7:57) have been severely negatively impacted as a result of this.

(8:03) So maybe we can have J.C. (8:05) explain the silo and and how the new teacher funding (8:10) was rebased through a hedonics index. (8:13) So the the silo allowed they went through a lawsuit, (8:17) the state of Wyoming, which there’s in their fifth one. (8:19) And through the process, they, I would say, called the call (8:23) to provide for educational instructional staff, teachers certified.

(8:29) And so they provided that funding to come across. (8:32) Well, in order to provide, in essence, the funding, (8:35) they kind of did a 50 50 split 50. (8:37) They added new monies, in essence, to each district to to make that happen.

(8:43) But then within their ideas, they took within and created a silo. (8:48) And silo means that money within that funding cannot be used outside of it. (8:54) So it cannot carry across for other things, as we just talked about activities (8:58) where before we had, in essence, run really lean.

(9:02) And we’ve agreed as staffing because we we at the time ran (9:06) with the highest salary plus benefit package in the state of Wyoming. (9:10) And that was good for us. (9:11) We did that for a reason.

(9:13) And we have done it for 20 years. (9:15) They moved that across, allowing us, in essence, disallowing us (9:19) to use that funding in the ways that we do and provide for all staff. (9:24) So once the silo showed up, everything outside, in essence, non silo, (9:28) we literally just within utilities.

(9:30) They took two hundred fifty thousand dollars from us for utilities. (9:35) Power doesn’t go less. (9:37) It becomes more expensive based upon the year.

(9:40) So once they did that, everything that’s a non silo, (9:43) as we just talked about activities or staffing or anything else, (9:48) it’s going to have to take a hard look for us to continue down the path we’re going. (9:53) Now, with the school board, we have done well for 20 years. (9:57) And this is my 21st year with, in essence, putting money aside.

(10:00) So savings, we’ve always reported to the board what we do and how we do it. (10:05) We’re asking for this one year set aside for us to rebalance. (10:10) And we can make a lot of decisions quickly, (10:13) which we have in the past done those things.

(10:15) But we’re asking the school board and then us and stakeholders in this community. (10:20) We’re going to make some really big decisions. (10:23) We collectively as a group and as with the school board.

(10:26) And we want to understand that as we make those decisions (10:29) and then send those out to the public, that we make good decisions. (10:33) So we are going to, in essence, use a little bit of our savings as we step into next year. (10:39) And then we’ll rebalance, repurpose how we do that.

(10:43) But all through the school board, the narrative and everything will all be there (10:47) for anybody to understand and to follow through with it. (10:51) So following along with that, Duke, when it comes to the silo on the teacher side. (10:57) So the hedonics index, which is basically the cost of living.

(11:01) So it’s figured by county across the state. (11:04) And it doesn’t take into account the cost of a house or housing. (11:09) It takes into account rent prices.

(11:13) So if you look at the hedonics, like I say, through this recalibration process, it was rebased. (11:19) And with that, with the instructional silo, now they’ve changed the way (11:24) that districts are funded for teachers. (11:26) So currently today, a teacher with a bachelor’s degree, a district is funded $43,000 and change.

(11:34) And then for every year of experience, it’s an additional $800 and something. (11:38) And then for an advanced degree, a master’s degree or a doctorate degree, (11:45) then a district gets a little extra. (11:49) So starting July 1, as JC mentioned, it goes to the silo.

(11:53) And they rebase the hedonics index. (11:56) So the rebased hedonics index, the weighted average teacher salary (12:00) in the state of Wyoming will be $68,277. (12:05) And then by rebasing the hedonics index, RRCA, (12:09) or regional cost adjustment, went to 114% of the state average.

(12:15) Just as a comparison, our friends to the north went to 174%. (12:22) But anyway, so then you take the $68,277 times 114% and the weighted average (12:29) for Lincoln 2 funding-wise will be $77,835. (12:36) Instead of the 43,000 and then steps and education.

(12:43) So super complicated, but hopefully we’ve made that to where the average stakeholder (12:49) that doesn’t deal in this stuff every day at least gets a sense (12:53) of the challenges that we’re up against. (12:55) Yeah, I think so. (12:56) I think so.

(12:56) So again, in studio this morning is LCSC number two, Superintendent Matt Erickson, (13:01) Director of Finance, JC Inskeep. (13:02) So I’m going to attempt to maybe summarize and you tell me if I’m off anywhere. (13:06) So basically this recalibration has put this funding into a silo, which has resulted (13:11) in many cases pay raises for teachers, but has come at the expense of activities, (13:17) operational costs, and support staff.

(13:20) And the district is looking at deploying from savings in order to cover those costs, (13:25) at least for the next upcoming school year. (13:28) Is that pretty close? (13:30) That would be a really good summary. (13:33) Pretty close.

(13:33) Okay. (13:34) So you can’t keep pulling from savings forever. (13:38) So you can get through the upcoming school.

(13:41) I mean, what’s a long-term changes need to be made to the recalibration bill (13:46) or adjustments on operations for the district, right? (13:51) So that’s a great question. (13:52) And yes, we’re in a great place savings-wise. (13:55) JC’s done a fantastic job the last couple of decades.

(13:58) And before that, it was Wade. (14:00) Hershey is our business manager. (14:03) And before that, it was a guy that I love and admire.

(14:07) He’s my hero. (14:08) It’s my dad. (14:09) But sorry.

(14:12) The district’s in great shape. (14:14) But you’re right. (14:16) It’s not sustainable.

(14:17) So this next year, our local school board is a bunch of great people. (14:23) We have seven great people that serve right now. (14:26) And they’re generous and gracious enough.

(14:29) They’re going to let us deficit spend. (14:33) And then we’re working closely with Senator Dockstader and Representative Erickson (14:37) and Representative Andrew Byron out of Hoback, who represents our district. (14:42) And then we’re trying to bring some other elected officials on board with our challenges.

(14:49) And they’re going to run some amendments on recalibration starting in January of 2027. (14:57) And we’ll have a new governor. (14:59) We’ll have a new state superintendent that promotes public ed, we hope.

(15:08) And at that time, then we think that we’ll be able to make some changes at the legislative level (15:14) and maybe get this ship righted a little bit. (15:18) Okay. (15:18) So you mentioned stakeholders wanting to be aware of this process.

(15:24) Any action you would like to see stakeholders take to make sure that they’re involved (15:29) and understanding what’s happening? (15:31) So that’s a great question as well. (15:32) And I’ll take that one. (15:35) So there’s some really, really important dates that are just around the corner.

(15:40) May 13th, we have to be registered. (15:43) Wyomingites have to be registered to vote. (15:48) And candidates at the state level don’t have to, are not filing until May 14th.

(15:54) So I find that a little bit ironic. (15:56) But anyway, and then August 18th, I believe, Tuesday, August 18th is the primary election. (16:04) And as we know, Duke, in the 2024 primary election, I believe less than 20% of Wyomingites voted.

(16:13) So the number one thing that we can do as a valley and as a community, Cokeville, (16:19) is get to the polls on August 18th and exercise our most basic right as citizens (16:28) of this great, great country and this wonderful state. (16:33) So let’s get to the polls and make our voice known on governor and secretary of state (16:39) and state superintendent, and I think we can get this thing turned around. (16:46) Currently, we have the most, we have the best funding, public education funding system (16:52) in the nation, and that’s in jeopardy starting July 1. (16:57) And we want to make some corrections if we possibly can, so.

(17:02) Lincoln County School District No. 2 Superintendent Matt Erickson, (17:04) Director of Finance J.C. Inskeep in studio. (17:06) Appreciate the discussion.

(17:08) Anything we missed that you’d like to mention today on this? (17:11) I would also, as we’re talking about elections and whatnot, just let people know (17:16) so they can put it on their radar and start thinking. (17:19) So school board for Lincoln 2, obviously that filing isn’t, it starts, I believe, (17:25) August 5th, goes through the 24th. (17:28) But there’ll be four, there’ll be three areas and one at large that are up this fall.

(17:36) So I believe it’s area one, area two, area five, and one of the at largest. (17:42) So again, we appreciate our school board, and if somebody has an interest and wants (17:47) to get involved, then there’ll be, it sounds like there’ll be some opportunities (17:51) to run this fall, so. (17:54) Perfect.

(17:54) We’ll stay posted and stay tuned for that coming up this fall. (17:58) That’s Superintendent Matt Erickson, Director of Finance J.C. Inskeep. (18:01) It’s all part of the weekday wake up this morning on SVI Radio.