Board Finance Committee. November 15, 2017

Transcription

1 Board Finance Committee November 15, 2017

2 Table of Contents 1. FY17 Audited Financials GRP Presentation 2. Workers Compensation - Program Update 3. Travel Report Superintendent/BOT Budget Development Calendar 5. Board Agenda Items Budget Related

3 Annual Financial Report June 30, 2017

4 El Paso Independent School District Comparison of District Revenue Millions Local Federal State This information is based on extracts from the annual reports and is not intended to present complete financial information.

5 El Paso Independent School District % Comparison of District Revenue 100% 90% 80% 34.1% 33.5% 32.6% 30.7% 32.9% 70% 60% 50% 40% 30% 20% 10% 0% 16.3% 16.8% 17.6% 17.5% 15.4% 49.7% 49.7% 49.8% 51.8% 51.7% Local Federal State This information is based on extracts from the annual reports and is not intended to present complete financial information. 2

6 El Paso Independent School District General Fund Expenditures Millions Facilities, Security & Data Processing Central Admin Student Support Campus Admin Instruction Does not include functions 61, 71, 72, 73 and 81. This information is based on extracts from the annual reports and is not intended to present complete financial information.

7 El Paso Independent School District Breakdown of Each Dollar of 2017 General Fund Expenditures Instruction includes teachers & aides (salaries, benefits, training, etc) and classroom related supplies & resources. Campus Admin. includes the salary, benefits, training, etc of those managing & supervising instructional staff. Student Support includes counselors, social service, health service, transportation, extracurricular. Does not include functions 61, 71, 72, 73 and 81. This information is based on extracts from the annual reports and is not intended to present complete financial information.

8 10,000 9,000 8,000 7,000 El Paso Independent School District General Fund Per Pupil Expenditures & State Revenue 7,786 8,292 8,371 8,826 9,250 6,000 5,000 4,788 5,117 5,280 5,805 5,703 Total Expenditures State Revenue 4,000 3,000 2,000 1, This information is based on extracts from the annual reports and is not intended to present complete financial information.

9 El Paso Independent School District Millions General Fund Balance Restricted: Inventory 1.8 BiLing Allot 1.5 HS Allot 2.4 Assigned: Construction 1.1 Equipment 2.3 Encumb-other 2.5 Relocation 3.2 Other 0.2 Other Unassigned Days of Expenditures This information is based on extracts from the annual reports and is not intended to present complete financial information.

10 El Paso Independent School District Administrative Cost Ratio Millions % (TEA Maximum) % 4.21% 3.94% 4.25% 4.73% Administrative Costs Ratio** * * Function Function This information is based on extracts from the annual reports and is not intended to present complete financial information.

11 El Paso Independent School District Refined ADA This information is based on extracts from the annual reports and is not intended to present complete financial information.

12 EL PASO INDEPENDENT SCHOOL DISTRICT SELF-INSURED WORKERS COMPENSATION PROGRAM FUNDING ANALYSIS AS OF JUNE 30, 2017 MADISON CONSULTING GROUP, INC. 3

13 August 29, 2017 Mr. Kyle D. Jeglum Director of Risk Management El Paso Independent School District 2300 Murchison El Paso, TX RE: El Paso Independent School District Self-Insured Workers Compensation Program Funding Analysis As of June 30, 2017 Dear Mr. Jeglum: Please find enclosed a copy of the above captioned report. We have enjoyed working on this project and hope you find the results satisfactory. Please let us know should you have any questions. Sincerely, JG/rkh Enclosure John Gleba, FCAS, MAAA, FCA 200 N. Second Street Madison, GA Clover Lane Newtown Square, PA Fax:

14 ACTUARIAL ANALYSIS OF THE EL PASO INDEPENDENT SCHOOL DISTRICT SELF-INSURED WORKERS' COMPENSATION PROGRAM AS OF JUNE 30, 2017 PURPOSE Madison Consulting Group, Inc. was requested by the Board of the El Paso Independent School District ( EPISD ) to perform an actuarial analysis of the School Board s workers' compensation self-insurance program as of June 30, This report describes the results of that analysis. DISTRIBUTION AND USE This report has been prepared for the internal use of the management of EPISD in their determination of reasonable reserve and funding levels for the self-insured program. It is our understanding that this report may be distributed to EPISD s auditors and may become a public document. It is requested that all distributions of this report be made in its entirety. Any other use or distribution is not authorized without our prior consent. ACKNOWLEDGEMENT OF QUALIFICATION This report was prepared under the direction of John Gleba, FCAS, MAAA, FCA. Mr. Gleba is a member of the American Academy of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. MADISON CONSULTING GROUP, INC. 5

15 EXECUTIVE SUMMARY Reserve Balance as of June 30, 2017 The estimated central estimate of the undiscounted liability for unpaid workers' compensation claims at EPISD s retention as of June 30, 2017 is $7.679 million. The central estimate of the discounted liability at an assumed annual interest rate of 4.0% is $6.096 million. These amounts are intended to provide for all payments made after June 30, 2017 associated with claims occurring on or before June 30, Comparison of Reserve Estimates to Prior Year The following table compares the central estimate of the undiscounted liability as of June 30, 2017 with comparable amounts as of June 30, 2016: Undiscounted Liability as of Undiscounted Liability as of June 30, 2017 June 30, 2016 Increase (Decrease) $7,679,439 $5,877,213 $1,802,226 The reserve change of $1,802,226 can be broken down into two separate components. For accidents that occurred on or before June 30, 2016, total reserves (case reserves plus IBNR reserves) have decreased $2,355,646. For informational purposes, the projections of ultimate losses for all periods prior to June 30, 2016 have decreased by approximately $0.610 million (-0.5%), although this varies by self-insured period. The second component of the reserve change is the addition of $4,157,872 to reflect new claims occurring in the period July 1, 2016 through June 30, The total change is the sum of the change in the prior periods and the additional claims occurring between July 1, 2016 and June 30, 2017 (-$2,355,646 + $4,157,872 = $1,802,226). MADISON CONSULTING GROUP, INC. 6

16 Funding Projections Exhibit 1, Sheet 2 provides a summary of funding amounts for the prospective accident periods on both a nominal and a discounted basis and at various probability levels. The table below summarizes our recommendations: Recommended Funding Amounts (Central Estimates) Accident Period Undiscounted Discounted at 4.0% 7/1/17-6/30/18 $4,180,119 $3,653,424 7/1/18-6/30/19 4,242,925 3,708,316 MADISON CONSULTING GROUP, INC. 7

17 CONDITIONS AND LIMITATIONS The EPISD currently maintains a self-insurance fund for its workers compensation claims. Beginning March 1, 1994, EPISD purchased excess insurance for its workers compensation exposure with a self-insured retention of $500,000 per occurrence. As of March 1, 2004, it is our understanding that workers' compensation benefits are currently selfinsured to a level of $2,000,000 per occurrence with excess coverage purchased through external reinsurers up to statutory limits. In addition, we note that in 2010, the effective period of EPISD s excess insurance policy was changed to run from May 1 through April 30 (as opposed to the previous policies, which ran from March 1 through February 28). The self-insured retention remains at $2,000,000 per occurrence. As the program has been operating for a period of time, the appropriateness of considering the feasibility of adopting self-insurance programs of this type is beyond the scope of this report. However, it is important to note certain implications inherent in self-insuring workers' compensation exposures. The first, and most important is that self-insurance, unlike commercial insurance, does not result in a transfer of risk. Thus, if actual losses exceed funded amounts, the difference must be paid by the self-insurer. Consequently, the self-insurer is exposed to greater fluctuation in financial results than a similar entity with a commercial insurance program. Excess, or catastrophe, insurance can help to reduce the adverse impact on financial results of unusually large losses or an unexpectedly long series of small losses. The second major consideration is that there is a potential for significant variation of actual results compared to expectations based on historical experience. In particular, changes in the MADISON CONSULTING GROUP, INC. 8

18 social and legal environments may result in differences between the historical and future loss profiles. The third major consideration for a self-insured program of this size is that even if the historical experience proves to be a good indication of average future emergence, the year-to-year fluctuations in the averages may be substantial. Inclusion of a risk margin in the fund balance can help to mitigate the impact of the year-to-year fluctuations. The funding recommendations in this report reflect loss amounts net of the EPISD s specific and aggregate retentions and net of salvage and subrogation recoveries. Throughout this report, losses below the excess amounts are referred to as the self-insured retention (SIR). In the analysis, it has been assumed that all commercial insurance will be fully collectible. However, Madison Consulting Group has performed no analysis of, nor formed any opinion of, the financial condition of the EPISD's excess insurers. In addition, it should be recognized that in the event of unusual circumstances, commercial insurance could be exhausted. Our estimates include no provision for this contingency. The loss amounts presented in this report have been aggregated by fiscal period corresponding to the EPISD s fiscal year cycle. The funding recommendations contained in this report provide for losses and allocated loss adjustment expenses (ALAE) only (as defined on the EPISD s claims runs). They do not include any provision for insurance expenses, administrative expenses or other overhead items. Funding recommendations are presented both at ultimate value and discounted to present value at an assumed investment yield rate of 4.0% per annum. The discounted funding recommendations reflect the time value of money and the lag between the time a claim is incurred and the time it is fully paid. We were instructed to use a 4.0% discount rate by EPISD s management. MADISON CONSULTING GROUP, INC. 9

19 Risk Margin Actuarial reserve or funding rate estimates for the EPISD s self-insurance programs are subject to inherent variability. This variability stems from two sources: process risk and parameter/model risk. Process risk is the risk that actual results will vary from actuarial central estimates based on random chance. Parameter risk is the risk that the actuarial methods underlying the estimates do not accurately represent the true characteristics of the risk. For example, suppose we flip a coin ten times. The estimate of the expected number of heads is five, assuming the coin is fair. Process risk is the risk that the actual number of heads will be more or less than five due to random variability in the coin flipping process. Parameter risk is the risk that the coin itself is not fair (i.e., the probability of achieving heads is less than or greater than 50%). If the EPISD were to follow a strategy of funding its programs based on our central estimates, significant year-to-year fluctuations in indicated fund contributions would likely result. To mitigate these fluctuations and to stabilize year-to-year financial results, management may wish to maintain a margin in the fund balance. In this report, we show reserve and funding indications both on a central estimate basis (based on long-term averages) and at higher probability levels. (For example, funding at the 90% probability level means that estimated funds will be sufficient to cover liabilities in nine out of ten years). Management can utilize these alternative estimates to determine an appropriate margin. We consider the central estimate as the minimum acceptable funding level. In our experience, many clients with similar profiles fund between the 75% and 90% probability levels. The statistical model used to generate the risk margins associated with the various probability levels is based on a simulation approach where claim counts (frequency) are assumed to MADISON CONSULTING GROUP, INC. 10

20 follow a Poisson distribution and claim costs (severity) follow a lognormal distribution. The model runs 1,000 random trials to generate a set of 1,000 possible outcomes, which are ordered from lowest to highest. The risk margin for the 70% probability level, for example, is the ratio of the 700 th ordered result to the mean of the random sample. We emphasize that the range of values discussed above are based on a statistical model that measures only the process risk involved with the EPISD s reserve and funding estimates. We have not analyzed any potential parameter/model risk inherent in our underlying estimates. In our experience, in a small program such as the EPISD s, process risk accounts for most of the associated inherent variability. Data Sources In the analysis, we have relied, without audit or verification, on the following sources of data provided by the EPISD: claim data evaluated as of June 30, 2017 for the workers compensation program; summary information on the current and historical excess insurance program (we did not review any insurance contracts); and historical exposure data (i.e., payroll). The above data was supplemented by Texas workers' compensation industry data as reported in rate filings of the National Council on Compensation Insurance (NCCI), as well as their Annual Statistical Bulletin (2017 Edition) and proprietary data from similar programs. Cost Containment Fees The claims runs provided to us by the EPISD included a summary of lump sum historical cost containment fees related to Argus Services Corporation. We have removed these fees MADISON CONSULTING GROUP, INC. 11

21 from the historical loss and ALAE data since this line item did not represent an actual claim liability. The total amount of fees removed from the historical loss data was $2,413,931 (paid and incurred). Self-Insurance Retentions In our analysis, we relied on information provided by the EPISD regarding their specific self-insured retentions for each fiscal period. It is our understanding that from March 1, 1994 through February 29, 2004, the EPISD had a historical SIR of $500,000 per occurrence. As of March 1, 2004, the SIR is $2,000,000 per occurrence. Prior to March 1, 1994, we have no information as to what specific SIR, if any, was in effect. Exhibit 9 provides a summary of our understanding of the EPISD s historical SIR s. As noted earlier, beginning in 2010, the EPISD s excess policy now runs from May 1 through April 30. Uses of the Self-Insured Fund follows: It should be noted that this report assumes the maintenance of a fund balance as the fund balance is maintained at the actuarially indicated level presented in our report; future accident periods are funded at the actuarially indicated level presented in our report; all fund contributions, interest income and recoveries are credited to the fund balance; and any expenses beyond those contemplated in our report will be fully budgeted and be in addition to the amounts projected in our report. This would include non-claim related expenses such as insurance premiums, taxes and assessments, claims administration overhead expenses, etc. It would also include excluded categories of claims (e.g., land use, civil rights, pollution, etc.). MADISON CONSULTING GROUP, INC. 12

22 Variability Finally, it should be noted that the development of funding recommendations for workers' compensation losses involves the projection of future contingent events. Therefore, no guarantee can be made that the recommendations contained in this report will prove to be adequate or not excessive. We have, however, utilized methods and assumptions that are in accord with accepted actuarial standards, and we believe the conclusions reached are reasonable. MADISON CONSULTING GROUP, INC. 13

23 RESULTS AND CONCLUSIONS Based on our analysis we have the following results and conclusions: Outstanding Reserves as of June 30, 2017 The actuarial central estimate of unpaid workers' compensation claims at EPISD s SIR as of June 30, 2017 is $7.679 million. The actuarial central estimate discounted to present value (at an assumed annual interest rate of 4.0%) is $6.096 million. This amount provides for all payments made after June 30, 2017 associated with claims occurring on or before June 30, These central estimates are summarized on Exhibit 1, Sheet 1 together with alternative estimates at probability levels of 90%, 85%, 80%, 75%, 70%, and 60%. It is recommended that the EPISD aim to establish the fund balance between the 75% and 90% probability levels. The choice of probability level at which to maintain the fund balance is ultimately a management decision based on its assessment of financial risk, available resources, and the availability of alternative funding sources should a shortfall arise. It is noted that, within reason, the long-term cost of the program is essentially independent of the funding strategy that is followed. However, the strategy is important in ensuring smooth financial results and in increasing the confidence that adequate funds are readily available to pay claims as they become due. MADISON CONSULTING GROUP, INC. 14

24 Funding Requirements for Future Fiscal Years Exhibit 1, Sheet 2 provides a summary of recommended fund contributions for fiscal years and These projections assume no change in the current excess insurance program. The fund contributions account for incidents occurring in the stated fiscal years only and do not reflect provisions to correct or amortize any prior inadequacy or redundancy that may exist in the actual fund balance. Reconciliation of Reserve Balance Exhibit 1, Sheet 3 provides a reconciliation of EPISD s recommended reserve balance as of June 30, 2017 with the recommended reserve balance from the prior year s analysis (i.e., as of June 30, 2016). The reconciliation starts with the recommended undiscounted reserve balance as of June 30, 2016 of $5.877 million. This amount came from our June 30, 2016 actuarial analysis and represents the central estimate reserve balance (i.e., no risk margin adjustment). To that amount we add the current reserve balance for accidents that occurred between July 1, 2016 and June 30, 2017 as of June 30, 2017, as well as the change in case reserves as of June 30, 2017 for accidents that occurred prior to July 1, The remaining balancing item of negative $2.274 million, shown on Line (4), represents the change in EPISD s reserve balance resulting from changes in IBNR projections for accident periods prior to July 1, For informational purposes, Line (6) shows the total payments made between July 1, 2016 and June 30, 2017 on accidents that occurred prior to July 1, This amount is $1.746 MADISON CONSULTING GROUP, INC. 15

25 million. Line (7) is the sum of the amounts in Lines (3), (4), and (6). This sum represents the total change in ultimate losses and ALAE for periods prior to July 1, Management can use this value to evaluate the historical results of the program. The total change in ultimate loss and ALAE projections for prior years is negative $0.610 million (the sum of Lines (3), (4), and (6) on Exhibit 1, Sheet 3). Estimated Loss and ALAE Payments During Future Fiscal Years Appendix A provides an estimate of loss and ALAE payments to be made during the fiscal periods July 1, 2017 through June 30, 2018, and July 1, 2018 through June 30, 2019, assuming that EPISD s current retention levels continue into the foreseeable future. For example, Appendix A shows a total outstanding reserve amount as of June 30, 2017 for fiscal period July 1, 2013 through June 30, 2014 of $0.651 million (Column (2)). This amount represents the total amount of dollars expected to be paid from July 1, 2017 through the time that all claims will eventually be settled for claims that occurred in that period. However, not all that $0.651 million will be paid during the next fiscal period. In fact, it may take a substantial number of years (e.g. twenty to thirty years) before every claim is settled and fully paid. Appendix A shows that of the total amount remaining to be paid, approximately $68 thousand is expected to be paid between July 1, 2017 and June 30, 2018 (Column (3)). Similarly, another $53 thousand is expected to be paid between July 1, 2018 and June 30, 2019 (Column (4)). It is noted that the estimated payments shown on Appendix A are on an undiscounted basis and have not been adjusted for the time value of money, nor do they include any margin for adverse deviation. MADISON CONSULTING GROUP, INC. 16

26 General Recommendations The estimated future funding requirements are based on projections of future exposures and the current commercial excess programs. If actual exposures or the excess program significantly differ from projected values, we should be contacted so that funding projections can be revised as necessary. It is recommended that the funding recommendations be reviewed and adjusted as necessary on an annual basis. MADISON CONSULTING GROUP, INC. 17

27 ANALYSIS The major steps in our analysis were as follows: (i) (ii) Ultimate losses and ALAE limited to the EPISD s SIR were estimated for each fiscal period based on the EPISD's actual loss history. Projected loss rates for future fiscal years were estimated based on loss levels of prior periods. (iii) Based on the ultimate losses and ALAE selected in (i), the liability as of June 30, 2017 was estimated at both a nominal and discounted value. (iv) (v) A statistical simulation model was utilized to estimate reserves at various probability levels. Funding contributions for future fiscal accident years were calculated based on the loss rates estimated in (ii) and estimates of future exposure growth and inflation. Each of these steps is discussed in more detail in the remaining sections. Projection of Ultimate Losses and ALAE Ultimate losses and ALAE for each fiscal accident year were projected utilizing five projection methods: reported loss approach; paid loss approach; unreported loss approach; unpaid loss approach; and expected loss approach. The results of the methods are summarized on Exhibit 3. The following sections describe the methods in more detail. MADISON CONSULTING GROUP, INC. 18

28 Reported/Paid Loss Approach Exhibit 4 summarizes the application of the reported and paid loss approaches to projecting the EPISD's losses. In these methods, aggregate paid and reported (i.e., paid losses plus individual case examiners reserve estimates) losses and ALAE for each fiscal period are projected to an estimated ultimate value by multiplying actual losses by a loss development factor. The development factors were based on a review of actual historical loss development and consideration of a broader source of industry data (i.e., Texas industry factors as shown in NCCI s Annual Statistical Bulletin (2017 Edition)). Exhibit 4, Sheets 2 and 3 show historical reported and paid loss development respectively. Unreported Loss Approach Exhibit 5 summarizes the application of the unreported loss approach in projecting the EPISD's losses and ALAE. In this method, expected unreported losses and ALAE are estimated by multiplying an initial estimate of ultimate losses (based on the EPISD s own experience) by estimated percentages of ultimate losses remaining unreported (based on the reporting patterns utilized above). Ultimate losses and ALAE for the EPISD are then estimated as the sum of actual reported losses and estimated unreported losses. An important component of the unreported approach is the initial estimate of expected loss. In our analysis, this was estimated based on insurance industry loss levels with modification to reflect the EPISD s exposure profile and loss experience (see discussion of Expected Loss Approach below). MADISON CONSULTING GROUP, INC. 19

29 Unpaid Loss Approach Exhibit 6 summarizes the application of the unpaid loss approach to projecting the EPISD's losses. This method is like the unreported loss development approach except unpaid losses are estimated rather than unreported losses. Expected Loss Approach Exhibit 7, Sheets 1 through 5, summarize the application of the expected loss approach to projecting EPISD s losses. In this approach, expected ultimate losses are based on insurance industry rating plans and EPISD s payroll distribution by occupational classification and are modified to reflect EPISD s historical loss experience. The experience modifier, determined on Exhibit 7, Sheet 2, is 1.600, indicating that the EPISD s historical loss levels have, on average, been higher than comparable industry experience for similar exposures underlying the July 1, 2017 Texas loss costs. We do note, however, there is substantial year-to-year fluctuation. Selected Ultimate Losses Exhibit 3 provides a summary of each of the projection methods. Based on these projections, ultimate losses are selected. Development of Reserves for Unpaid Losses and ALAE Exhibit 2, Sheet 1 provides a summary of the EPISD s historical experience, including the recommended reserves for unpaid losses and ALAE by fiscal year on an undiscounted MADISON CONSULTING GROUP, INC. 20

30 basis. The recommended reserves as of June 30, 2017 in Column (7) are calculated as the difference between the selected ultimate losses and ALAE in Column (2) and the paid losses and ALAE as of June 30, 2017 in Column (4). Alternatively, the recommended reserves in Column (7) can be calculated as the sum of the case reserves for losses and ALAE in Column (5) and the projected reserves for IBNR claims in Column (6). The recommended reserves discounted at a 4.0% rate of discount are calculated as the product of the discount factors in Column (8) (from Exhibit 8) and the undiscounted reserves in Column (7). Development of Estimated Future Funding Requirements Exhibit 2, Sheet 2 provides a summary of the estimated loss rates for future fiscal years and The projected loss rates were based on a review of both the indicated current level loss rates by fiscal accident year and judgment. The projected payroll amounts in Column (18) were based on an assumed annual payroll growth of 1.0%. The indicated funding requirements for fiscal periods and are obtained by multiplying the estimated exposures (i.e., payroll) by the selected current level loss rates in Column (20) and expected future trend rates. Exhibit 1, Sheet 2 provides a summary of the projected funding requirements for fiscal accident years , and on both undiscounted and discounted bases. In addition, funding requirements are provided at various probability levels. As noted earlier, many clients with similar profiles fund between the 75% and 90% probability levels. MADISON CONSULTING GROUP, INC. 21

31 Finally, to keep this report reasonably concise, we have not included source documentation or certain intermediate calculations and worksheets. We would be pleased to provide any or all this information upon request. MADISON CONSULTING GROUP, INC. 22

32 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 1 SHEET 1 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 SUMMARY OF OUTSTANDING RESERVES AT VARIOUS PROBABILITY LEVELS Probability Risk Outstanding Reserves as of 6/30/17 Level Margin (a) Undiscounted (b) Discounted (c) (1) (2) (3) (4) 90% 1.34 $ 10,296,686 $ 8,173,984 85% ,641,141 7,653,583 80% ,129,287 7,247,249 75% ,811,581 6,995,039 70% ,419,818 6,684,040 60% ,883,598 6,258,364 Central Estimate ,679,439 6,096,293 Notes: (a) Based on a simulation model. See text for discussion. (b) Central estimate is from Exhibit 2, Sheet 1, Column (7). Amounts at other probability levels are equal to the central estimate multiplied by the corresponding risk margin. (c) Central estimate is based on Column (3) and the discount factors shown on Exhibit 8. Amounts at other probability levels are equal to the central estimate multiplied by the corresponding risk margin. MADISON CONSULTING GROUP, INC. 23

33 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 1 SHEET 2 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 SUMMARY OF FUTURE FUNDING REQUIREMENTS AT VARIOUS PROBABILITY LEVELS Probability Risk Recommended Funding Amounts Level Margin (a) Undiscounted (b) Discounted (c) (1) (2) (3) (4) Recommended Funding Requirements for Period 7/1/17-6/30/18 90% 1.25 $ 5,225,149 $ 4,566,780 85% ,016,143 4,384,109 80% ,890,739 4,274,506 75% ,723,534 4,128,369 70% ,598,131 4,018,766 60% ,389,125 3,836,095 Central Estimate ,180,119 3,653,424 Recommended Funding Requirements for Period 7/1/18-6/30/19 90% 1.24 $ 5,279,341 $ 4,614,143 85% ,054,591 4,417,712 80% ,789,917 4,186,387 75% ,631,655 4,048,066 70% ,518,454 3,949,129 60% ,311,898 3,768,598 Central Estimate ,242,925 3,708,316 Notes: (a) Based on a simulation model. See text for discussion. (b) Central estimates are from Exhibit 2, Sheet 2, Column (17). Amounts at other probability levels are equal to the central estimate multiplied by the corresponding risk margin. (c) Central estimates are based on Column (3) and the discount factors shown on Exhibit 8. Amounts at other probability level are equal to the central estimate multiplied by the corresponding risk margin. MADISON CONSULTING GROUP, INC. 24

34 EXHIBIT 1 SHEET 3 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 RECONCILIATION OF RESERVE BALANCE (1) Reserve Balance (Undiscounted) as of June 30, 2016 (a) $ 5,877,213 (2) Reserve as of June 30, 2017 for accidents $ 4,157,872 that occurred between June 30, 2016 and June 30, 2017 (b) (3) Change in Case Reserves on accidents that $ (81,777) occurred prior to June 30, 2016 (4) Change in IBNR (c) $ (2,273,869) (5) Reserve Balance (Undiscounted) as of June 30, 2017 $ 7,679,439 [(1) + (2) + (3) + (4)] (6) Payments between June 30, 2016 and $ 1,745,966 June 30, 2017 on accidents that occurred prior to June 30, 2016 (7) Change in Actuarial Estimates $ (609,680) [(3) + (4) + (6)] Notes: (a) See Exhibit 1, Sheet 1 of June 30, 2016 actuarial report. (b) Estimated based on Exhibit 2, Sheet 1. (c) Balancing item. Reflects changes in IBNR for accidents prior to July 1, 2016 MADISON CONSULTING GROUP, INC. 25

35 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 2 SHEET 1 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 EXPERIENCE SUMMARY Case IBNR Total Discounted Selected Reported Paid Reserves for Reserves for Reserves for Reserves for Ultimate Losses and Losses and Losses and Losses and Losses and Losses and Accident Losses and ALAE as of ALAE as of ALAE ALAE ALAE Discount ALAE Period ALAE (a) 6/30/17 (b) 6/30/17 (b) [(3) - (4)] [(2) - (3)] [(5) + (6)] Factor (c) [(7) (8)] (1) (2) (3) (4) (5) (6) (7) (8) (9) Prior (d) $ 44,438,815 $ 44,438,815 $ 44,419,338 $ 19,477 $ - $ 19, $ 17,707 7/1/93-6/30/94 3,653,682 3,653,682 3,653, /1/94-6/30/95 3,155,247 3,155,247 3,155, /1/95-6/30/96 3,176,298 3,176,298 3,176, /1/96-6/30/97 4,100,000 4,097,296 4,034,076 63,220 2,704 65, ,581 7/1/97-6/30/98 3,166,607 3,166,607 3,166, /1/98-6/30/99 4,611,157 4,611,157 4,611, /1/99-6/30/00 6,681,123 6,681,123 6,681, /1/00-6/30/01 7,750,000 7,719,100 7,446, ,467 30, , ,900 7/1/01-6/30/02 6,749,852 6,749,852 6,749, /1/02-6/30/03 5,708,241 5,708,241 5,708, /1/03-6/30/04 3,648,710 3,648,710 3,648, /1/04-6/30/05 3,003,985 3,003,985 3,003, /1/05-6/30/06 2,600,329 2,600,329 2,600, /1/06-6/30/07 2,825,958 2,825,958 2,825, /1/07-6/30/08 2,991,772 2,991,772 2,991, /1/08-6/30/09 2,636,912 2,636,912 2,636, /1/09-6/30/10 3,450,000 3,415,922 3,381,514 34,408 34,078 68, ,899 7/1/10-6/30/11 2,316,229 2,316,229 2,316, /1/11-6/30/12 2,482,248 2,482,248 2,482, /1/12-6/30/13 3,400,000 2,943,918 2,937,031 6, , , ,986 7/1/13-6/30/14 4,200,000 3,856,114 3,548, , , , ,899 7/1/14-6/30/15 3,000,000 2,388,234 2,278, , , , ,117 7/1/15-6/30/16 3,750,000 2,907,148 2,521, , ,852 1,228, ,676 7/1/16-6/30/17 5,500,000 5,134,044 1,342,128 3,791, ,956 4,157, ,532,528 Total $ 138,997,165 $ 136,308,941 $ 131,317,726 $ 4,991,215 $ 2,688,224 $ 7,679,439 $ 6,096,293 Notes: (a) See Exhibit 3. (b) Provided by EPISD. (c) See Exhibit 8. (d) Reflects accident periods from 9/1/79 through 6/30/93. MADISON CONSULTING GROUP, INC. 26

36 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 2 SHEET 2 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF PROJECTED FUTURE FUNDING AMOUNTS Selected Indicated Ultimate Factor to Adjust Curr. Level Accident Losses and Payroll Retention to Current Level Loss Period ALAE (a) ($00) (b) Factor (c) Trend (d) Benefit (e) Rate (f) (1) (2) (3) (4) (5) (6) (7) 7/1/93-6/30/94 $ 3,653,682 $ 1,925, $ /1/94-6/30/95 3,155,247 2,002, /1/95-6/30/96 3,176,298 2,082, /1/96-6/30/97 4,100,000 2,165, /1/97-6/30/98 3,166,607 2,252, /1/98-6/30/99 4,611,157 2,342, /1/99-6/30/00 6,681,123 2,435, /1/00-6/30/01 7,750,000 2,533, /1/01-6/30/02 6,749,852 2,652, /1/02-6/30/03 5,708,241 2,798, /1/03-6/30/04 3,648,710 2,899, /1/04-6/30/05 3,003,985 2,958, /1/05-6/30/06 2,600,329 2,995, /1/06-6/30/07 2,825,958 3,204, /1/07-6/30/08 2,991,772 3,413, /1/08-6/30/09 2,636,912 3,568, /1/09-6/30/10 3,450,000 3,639, /1/10-6/30/11 2,316,229 3,405, /1/11-6/30/12 2,482,248 3,566, /1/12-6/30/13 3,400,000 3,507, /1/13-6/30/14 4,200,000 3,796, /1/14-6/30/15 3,000,000 3,826, /1/15-6/30/16 3,750,000 3,845, /1/16-6/30/17 5,500,000 3,890, Total / Average $ 94,558,350 $ 71,707,665 $ 1.76 (8) Straight average all $ 1.94 (9) Straight average last (10) Straight average last (11) Straight average last (12) Payroll weighted-average all 1.76 (13) Payroll weighted-average last (14) Payroll weighted-average last (15) Payroll weighted-average last (16) Selected Current Level Loss Rate $ 1.05 Trend Selected Current Accident Implied Payroll Factor to Future Level Loss Period Ultimate Loss (h) ($00) (b) Level (d) Rate (g) (1) (17) (18) (19) (20) 7/1/17-6/30/18 $ 4,180,119 $ 3,961, $ /1/18-6/30/19 4,242,925 4,000, Notes: (a) See Exhibit 3. (b) Provided by EPISD through FYE Subsequent years payroll based on an assumed annual growth rate of 1.0%. (c) Factor to bring losses to current retention level. (d) Based on a residual loss trend of 0.5% per annum. (e) Factor to adjust to current benefit level. (f) [ (2) (4) (5) (6) (3) ] (g) Based on averages and judgment. (h) [ (18) (19) (20) ] MADISON CONSULTING GROUP, INC. 27

37 EXHIBIT 3 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF SELECTED ULTIMATE LOSS AND ALAE Actual Actual Selected Projected Ultimate Losses and ALAE as of June 30, 2017 Reported Paid Prior Ultimate Accident Reported Paid Unreported Unpaid Expected Losses and Losses and Selected Losses and Period Method (a) Method (a) Method (b) Method (c) Method (d) ALAE (e) ALAE (e) Ultimate (f) ALAE (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Prior (g) n/a n/a n/a n/a n/a $ 44,438,815 $ 44,419,338 $ 44,463,630 $ 44,438,815 7/1/93-6/30/94 $ 3,671,950 $ 3,803,483 $ 3,659,394 $ 3,698,239 $ 1,142,486 3,653,682 3,653,682 3,653,682 3,653,682 7/1/94-6/30/95 3,174,178 3,306,699 3,162,427 3,210,294 1,196,682 3,155,247 3,155,247 3,155,247 3,155,247 7/1/95-6/30/96 3,198,532 3,350,994 3,185,083 3,241,560 1,255,037 3,176,298 3,176,298 3,176,298 3,176,298 7/1/96-6/30/97 4,130,074 4,288,223 4,107,826 4,111,731 1,316,194 4,097,296 4,034,076 4,050,000 4,100,000 7/1/97-6/30/98 3,195,106 3,388,269 3,179,046 3,256,441 1,382,056 3,166,607 3,166,607 3,166,607 3,166,607 7/1/98-6/30/99 4,661,880 4,966,216 4,627,120 4,714,188 1,451,146 4,611,157 4,611,157 4,608,207 4,611,157 7/1/99-6/30/00 6,767,978 7,249,018 6,700,927 6,799,945 1,523,363 6,681,123 6,681,123 6,680,476 6,681,123 7/1/00-6/30/01 7,834,887 8,139,170 7,742,995 7,582,040 1,593,021 7,719,100 7,446,633 7,450,000 7,750,000 7/1/01-6/30/02 6,864,599 7,424,837 6,779,484 6,908,473 1,743,083 6,749,852 6,749,852 6,749,852 6,749,852 7/1/02-6/30/03 5,816,698 6,324,731 5,743,195 5,886,690 1,839,677 5,708,241 5,708,241 5,707,868 5,708,241 7/1/03-6/30/04 3,728,982 4,071,960 3,692,672 3,856,531 1,998,282 3,648,710 3,648,710 3,648,710 3,648,710 7/1/04-6/30/05 3,079,085 3,376,479 3,057,788 3,250,583 2,241,802 3,003,985 3,003,985 3,003,985 3,003,985 7/1/05-6/30/06 2,670,538 2,946,173 2,660,868 2,872,752 2,328,405 2,600,329 2,600,329 2,599,092 2,600,329 7/1/06-6/30/07 2,905,085 3,224,418 2,894,441 3,140,474 2,536,421 2,825,958 2,825,958 2,818,191 2,825,958 7/1/07-6/30/08 3,081,525 3,443,530 3,072,931 3,358,385 2,798,571 2,991,772 2,991,772 3,075,000 2,991,772 7/1/08-6/30/09 2,726,567 3,069,366 2,741,529 3,083,912 3,170,211 2,636,912 2,636,912 2,900,000 2,636,912 7/1/09-6/30/10 3,535,479 3,983,423 3,532,485 3,899,191 3,428,326 3,415,922 3,381,514 3,600,000 3,450,000 7/1/10-6/30/11 2,401,929 2,772,526 2,433,429 2,853,395 3,255,554 2,316,229 2,316,229 2,600,000 2,316,229 7/1/11-6/30/12 2,596,431 3,025,860 2,640,907 3,131,309 3,605,896 2,482,248 2,482,248 2,650,000 2,482,248 7/1/12-6/30/13 3,129,385 3,662,478 3,153,606 3,640,729 3,554,029 2,943,918 2,937,031 3,400,000 3,400,000 7/1/13-6/30/14 4,137,610 4,553,250 4,122,743 4,415,455 3,921,022 3,856,114 3,548,909 4,200,000 4,200,000 7/1/14-6/30/15 2,653,328 3,030,317 2,787,487 3,268,582 3,992,534 2,388,234 2,278,434 3,000,000 3,000,000 7/1/15-6/30/16 3,459,506 3,784,491 3,559,575 3,883,254 4,077,669 2,907,148 2,521,313 3,750,000 3,750,000 7/1/16-6/30/17 7,690,798 3,843,855 6,518,851 4,057,517 4,171,104 5,134,044 1,342,128 3,772,186 5,500,000 Total $ 137,879,031 $ 138,997,165 Tot. x prior $ 97,112,130 $ 101,029,766 $ 95,756,809 $ 98,121,670 $ 59,522,571 $ 91,870,126 $ 86,898,388 $ 93,415,401 $ 94,558,350 Notes: (a) See Exhibit 4. (b) See Exhibit 5. (c) See Exhibit 6. (d) See Exhibit 7, Sheet 1. (e) Provided by EPISD. Losses are evaluated as of June 30, 2017 and are net of recoveries. (f) See Exhibit 3 of the June 30, 2016 actuarial report. (g) Reflects accident periods from 9/1/79 through 6/30/93. MADISON CONSULTING GROUP, INC. 28

38 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 4 SHEET 1 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF PROJECTED ULTIMATE LOSSES AND ALAE PAID/REPORTED LOSS DEVELOPMENT METHODS Projected Projected Actual Reported Reported Actual Paid Paid Reported Loss Losses and Paid Loss Losses and Accident Losses and Development ALAE Losses and Development ALAE Period ALAE (a) Factor (b) [(2) (3)] ALAE (a) Factor (b) [(5) (6)] (1) (2) (3) (4) (5) (6) (7) 7/1/93-6/30/94 $ 3,653, $ 3,671,950 $ 3,653, $ 3,803,483 7/1/94-6/30/95 3,155, ,174,178 3,155, ,306,699 7/1/95-6/30/96 3,176, ,198,532 3,176, ,350,994 7/1/96-6/30/97 4,097, ,130,074 4,034, ,288,223 7/1/97-6/30/98 3,166, ,195,106 3,166, ,388,269 7/1/98-6/30/99 4,611, ,661,880 4,611, ,966,216 7/1/99-6/30/00 6,681, ,767,978 6,681, ,249,018 7/1/00-6/30/01 7,719, ,834,887 7,446, ,139,170 7/1/01-6/30/02 6,749, ,864,599 6,749, ,424,837 7/1/02-6/30/03 5,708, ,816,698 5,708, ,324,731 7/1/03-6/30/04 3,648, ,728,982 3,648, ,071,960 7/1/04-6/30/05 3,003, ,079,085 3,003, ,376,479 7/1/05-6/30/06 2,600, ,670,538 2,600, ,946,173 7/1/06-6/30/07 2,825, ,905,085 2,825, ,224,418 7/1/07-6/30/08 2,991, ,081,525 2,991, ,443,530 7/1/08-6/30/09 2,636, ,726,567 2,636, ,069,366 7/1/09-6/30/10 3,415, ,535,479 3,381, ,983,423 7/1/10-6/30/11 2,316, ,401,929 2,316, ,772,526 7/1/11-6/30/12 2,482, ,596,431 2,482, ,025,860 7/1/12-6/30/13 2,943, ,129,385 2,937, ,662,478 7/1/13-6/30/14 3,856, ,137,610 3,548, ,553,250 7/1/14-6/30/15 2,388, ,653,328 2,278, ,030,317 7/1/15-6/30/16 2,907, ,459,506 2,521, ,784,491 7/1/16-6/30/17 5,134, ,690,798 1,342, ,843,855 Total $ 91,870,126 $ 97,112,130 $ 86,898,388 $ 101,029,766 Notes: (a) Provided by EPISD. Losses are evaluated as of June 30, 2017 and are net of recoveries. (b) Based on NCCI industry factors for Texas (2017 Annual Statistical Bulletin). MADISON CONSULTING GROUP, INC. 29

39 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 4 SHEET 2 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 HISTORICAL REPORTED LOSS AND ALAE DEVELOPMENT (a) Accident Age (in months) Period /1/93-6/30/94 3,637,564 3,640,379 3,645,968 3,645,791 3,653,346 3,653,682 3,653,682 7/1/94-6/30/95 3,155,139 3,155,247 3,155,247 3,155,247 3,155,247 3,155,247 3,155,247 7/1/95-6/30/96 3,175,594 3,176,292 3,176,298 3,176,298 3,176,298 3,176,298 3,176,298 7/1/96-6/30/97 3,884,999 3,950,290 4,000,642 4,024,619 3,998,290 4,036,299 4,097,296 7/1/97-6/30/98 3,161,535 3,166,753 3,166,607 3,166,607 3,166,607 3,166,607 3,166,607 7/1/98-6/30/99 4,599,307 4,599,791 4,602,026 4,603,096 4,606,914 4,608,207 4,611,157 7/1/99-6/30/00 6,631,007 6,520,063 6,672,491 6,674,193 6,675,553 6,680,476 6,681,123 7/1/00-6/30/01 7,357,455 7,394,708 7,400,581 7,407,889 7,420,213 7,440,146 7,719,100 7/1/01-6/30/02 6,746,008 6,757,950 6,750,134 6,749,852 6,749,852 6,749,852 6,749,852 7/1/02-6/30/03 5,710,370 5,704,742 5,704,987 5,703,942 5,707,247 5,707,868 5,708,241 7/1/03-6/30/04 3,637,750 3,649,803 3,648,710 3,648,710 3,648,710 3,648,710 3,648,710 7/1/04-6/30/05 3,029,941 2,998,184 3,001,151 3,003,499 3,003,985 3,003,985 3,003,985 7/1/05-6/30/06 2,555,769 2,610,065 2,597,521 2,597,130 2,598,117 2,599,092 2,600,329 7/1/06-6/30/07 2,790,438 2,799,246 2,797,559 2,802,884 2,812,084 2,818,191 2,825,958 7/1/07-6/30/08 2,813,647 2,822,976 2,884,941 2,921,411 2,969,648 2,977,371 2,991,772 7/1/08-6/30/09 2,534,397 2,563,569 2,569,395 2,623,147 2,638,832 2,642,929 2,636,912 7/1/09-6/30/10 2,891,357 3,030,631 3,071,319 3,147,472 3,181,761 3,408,953 3,415,922 7/1/10-6/30/11 2,078,079 2,236,415 2,238,118 2,278,927 2,298,143 2,314,232 2,316,229 7/1/11-6/30/12 1,870,199 2,493,217 2,473,638 2,473,658 2,476,520 2,482,248 7/1/12-6/30/13 2,061,231 2,747,393 2,829,437 2,931,402 2,943,918 7/1/13-6/30/14 2,741,135 3,364,225 3,604,831 3,856,114 7/1/14-6/30/15 1,820,614 2,148,250 2,388,234 7/1/15-6/30/16 2,122,765 2,907,148 7/1/16-6/30/17 5,134,044 Link Ratios Ult. 7/1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ Average Average Last Average Last Avg 5 x hi & lo $ Wtd Avg $ Wtd Avg NCCI (b) Prior Tail Selected Age-Ultimate Notes: (a) Provided by EPISD. (b) Based on NCCI Annual Statistical Bulletin, 2017 Edition. MADISON CONSULTING GROUP, INC. 30

40 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 4 SHEET 3 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 HISTORICAL PAID LOSS AND ALAE DEVELOPMENT (a) Accident Age (in months) Period /1/93-6/30/94 3,636,672 3,638,366 3,643,177 3,645,791 3,652,478 3,653,682 3,653,682 7/1/94-6/30/95 3,155,139 3,155,247 3,155,247 3,155,247 3,155,247 3,155,247 3,155,247 7/1/95-6/30/96 3,175,478 3,176,292 3,176,298 3,176,298 3,176,298 3,176,298 3,176,298 7/1/96-6/30/97 3,851,381 3,905,624 3,914,703 3,989,124 3,995,420 4,030,246 4,034,076 7/1/97-6/30/98 3,159,090 3,165,305 3,166,607 3,166,607 3,166,607 3,166,607 3,166,607 7/1/98-6/30/99 4,596,417 4,598,483 4,600,574 4,603,096 4,605,020 4,608,207 4,611,157 7/1/99-6/30/00 6,630,627 6,513,348 6,672,491 6,674,193 6,675,553 6,680,476 6,681,123 7/1/00-6/30/01 7,342,267 7,362,918 7,380,807 7,397,092 7,413,705 7,430,389 7,446,633 7/1/01-6/30/02 6,720,741 6,748,521 6,749,700 6,749,852 6,749,852 6,749,852 6,749,852 7/1/02-6/30/03 5,701,141 5,702,489 5,703,258 5,703,942 5,707,247 5,707,868 5,708,241 7/1/03-6/30/04 3,636,769 3,646,986 3,648,710 3,648,710 3,648,710 3,648,710 3,648,710 7/1/04-6/30/05 2,986,668 2,996,958 3,001,151 3,003,499 3,003,985 3,003,985 3,003,985 7/1/05-6/30/06 2,552,543 2,591,908 2,596,677 2,597,130 2,598,117 2,599,092 2,600,329 7/1/06-6/30/07 2,775,115 2,788,875 2,795,875 2,802,884 2,811,081 2,818,191 2,825,958 7/1/07-6/30/08 2,736,170 2,800,808 2,867,087 2,908,467 2,968,185 2,975,244 2,991,772 7/1/08-6/30/09 2,401,883 2,511,808 2,553,157 2,605,694 2,620,193 2,631,182 2,636,912 7/1/09-6/30/10 2,503,869 2,863,094 3,045,890 3,114,830 3,173,865 3,342,145 3,381,514 7/1/10-6/30/11 1,018,753 1,969,534 2,195,796 2,269,424 2,295,437 2,311,608 2,316,229 7/1/11-6/30/12 1,197,516 2,365,899 2,460,171 2,473,658 2,476,520 2,482,248 7/1/12-6/30/13 1,015,137 2,490,227 2,757,789 2,921,648 2,937,031 7/1/13-6/30/14 1,608,317 2,995,863 3,397,451 3,548,909 7/1/14-6/30/15 1,004,844 1,990,359 2,278,434 7/1/15-6/30/16 1,340,665 2,521,313 7/1/16-6/30/17 1,342,128 Link Ratios Ult. 7/1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ Average Average Last Average Last Avg 5 x hi & lo $ Wtd Avg $ Wtd Avg NCCI (b) Prior Tail Selected Age-Ultimate Notes: (a) Provided by EPISD. (b) Based on NCCI Annual Statistical Bulletin, 2017 Edition. MADISON CONSULTING GROUP, INC. 31

41 EXHIBIT 5 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF PROJECTED ULTIMATE LOSSES AND ALAE UNREPORTED LOSS DEVELOPMENT METHOD Expected Projected Modified Unreported Actual Ultimate Expected Portion of Losses and Reported Losses and Accident Losses and Losses ALAE Losses and ALAE Period ALAE (a) Unreported (b) [(2) (3)] ALAE (c) [(4) + (5)] (1) (2) (3) (4) (5) (6) 7/1/93-6/30/94 $ 1,142, % $ 5,712 $ 3,653,682 $ 3,659,394 7/1/94-6/30/95 1,196, % 7,180 3,155,247 3,162,427 7/1/95-6/30/96 1,255, % 8,785 3,176,298 3,185,083 7/1/96-6/30/97 1,316, % 10,530 4,097,296 4,107,826 7/1/97-6/30/98 1,382, % 12,439 3,166,607 3,179,046 7/1/98-6/30/99 1,451, % 15,963 4,611,157 4,627,120 7/1/99-6/30/00 1,523, % 19,804 6,681,123 6,700,927 7/1/00-6/30/01 1,593, % 23,895 7,719,100 7,742,995 7/1/01-6/30/02 1,743, % 29,632 6,749,852 6,779,484 7/1/02-6/30/03 1,839, % 34,954 5,708,241 5,743,195 7/1/03-6/30/04 1,998, % 43,962 3,648,710 3,692,672 7/1/04-6/30/05 2,241, % 53,803 3,003,985 3,057,788 7/1/05-6/30/06 2,328, % 60,539 2,600,329 2,660,868 7/1/06-6/30/07 2,536, % 68,483 2,825,958 2,894,441 7/1/07-6/30/08 2,798, % 81,159 2,991,772 3,072,931 7/1/08-6/30/09 3,170, % 104,617 2,636,912 2,741,529 7/1/09-6/30/10 3,428, % 116,563 3,415,922 3,532,485 7/1/10-6/30/11 3,255, % 117,200 2,316,229 2,433,429 7/1/11-6/30/12 3,605, % 158,659 2,482,248 2,640,907 7/1/12-6/30/13 3,554, % 209,688 2,943,918 3,153,606 7/1/13-6/30/14 3,921, % 266,629 3,856,114 4,122,743 7/1/14-6/30/15 3,992, % 399,253 2,388,234 2,787,487 7/1/15-6/30/16 4,077, % 652,427 2,907,148 3,559,575 7/1/16-6/30/17 4,171, % 1,384,807 5,134,044 6,518,851 Total $ 59,522,571 $ 3,886,683 $ 91,870,126 $ 95,756,809 Notes: (a) See Exhibit 7, Sheet 1. (b) Based on the development factors shown on Exhibit 4, Sheet 1. (c) Provided by EPISD. Losses are evaluated as of June 30, 2017 and are net of recoveries. MADISON CONSULTING GROUP, INC. 32

42 EXHIBIT 6 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF PROJECTED ULTIMATE LOSSES AND ALAE UNPAID LOSS DEVELOPMENT METHOD Expected Projected Modified Unpaid Actual Ultimate Expected Portion of Losses and Paid Losses and Accident Losses and Losses ALAE Losses and ALAE Period ALAE (a) Unpaid (b) [(2) (3)] ALAE (c) [(4) + (5)] (1) (2) (3) (4) (5) (6) 7/1/93-6/30/94 $ 1,142, % $ 44,557 $ 3,653,682 $ 3,698,239 7/1/94-6/30/95 1,196, % 55,047 3,155,247 3,210,294 7/1/95-6/30/96 1,255, % 65,262 3,176,298 3,241,560 7/1/96-6/30/97 1,316, % 77,655 4,034,076 4,111,731 7/1/97-6/30/98 1,382, % 89,834 3,166,607 3,256,441 7/1/98-6/30/99 1,451, % 103,031 4,611,157 4,714,188 7/1/99-6/30/00 1,523, % 118,822 6,681,123 6,799,945 7/1/00-6/30/01 1,593, % 135,407 7,446,633 7,582,040 7/1/01-6/30/02 1,743, % 158,621 6,749,852 6,908,473 7/1/02-6/30/03 1,839, % 178,449 5,708,241 5,886,690 7/1/03-6/30/04 1,998, % 207,821 3,648,710 3,856,531 7/1/04-6/30/05 2,241, % 246,598 3,003,985 3,250,583 7/1/05-6/30/06 2,328, % 272,423 2,600,329 2,872,752 7/1/06-6/30/07 2,536, % 314,516 2,825,958 3,140,474 7/1/07-6/30/08 2,798, % 366,613 2,991,772 3,358,385 7/1/08-6/30/09 3,170, % 447,000 2,636,912 3,083,912 7/1/09-6/30/10 3,428, % 517,677 3,381,514 3,899,191 7/1/10-6/30/11 3,255, % 537,166 2,316,229 2,853,395 7/1/11-6/30/12 3,605, % 649,061 2,482,248 3,131,309 7/1/12-6/30/13 3,554, % 703,698 2,937,031 3,640,729 7/1/13-6/30/14 3,921, % 866,546 3,548,909 4,415,455 7/1/14-6/30/15 3,992, % 990,148 2,278,434 3,268,582 7/1/15-6/30/16 4,077, % 1,361,941 2,521,313 3,883,254 7/1/16-6/30/17 4,171, % 2,715,389 1,342,128 4,057,517 Total $ 59,522,571 $ 11,223,282 $ 86,898,388 $ 98,121,670 Notes: (a) See Exhibit 7, Sheet 1. (b) Based on the development factors shown on Exhibit 4, Sheet 1. (c) Provided by EPISD. Losses are evaluated as of June 30, 2017 and are net of recoveries. MADISON CONSULTING GROUP, INC. 33

43 EXHIBIT 7 SHEET 1 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF MODIFIED EXPECTED LOSSES Modified Industry Expected Expected Selected Losses and Accident Losses and Experience ALAE Period ALAE (a) Modifier (b) [(2) (3)] (1) (2) (3) (4) 7/1/93-6/30/94 $ 714, $ 1,142,486 7/1/94-6/30/95 747, ,196,682 7/1/95-6/30/96 784, ,255,037 7/1/96-6/30/97 822, ,316,194 7/1/97-6/30/98 863, ,382,056 7/1/98-6/30/99 906, ,451,146 7/1/99-6/30/00 952, ,523,363 7/1/00-6/30/01 995, ,593,021 7/1/01-6/30/02 1,089, ,743,083 7/1/02-6/30/03 1,149, ,839,677 7/1/03-6/30/04 1,248, ,998,282 7/1/04-6/30/05 1,401, ,241,802 7/1/05-6/30/06 1,455, ,328,405 7/1/06-6/30/07 1,585, ,536,421 7/1/07-6/30/08 1,749, ,798,571 7/1/08-6/30/09 1,981, ,170,211 7/1/09-6/30/10 2,142, ,428,326 7/1/10-6/30/11 2,034, ,255,554 7/1/11-6/30/12 2,253, ,605,896 7/1/12-6/30/13 2,221, ,554,029 7/1/13-6/30/14 2,450, ,921,022 7/1/14-6/30/15 2,495, ,992,534 7/1/15-6/30/16 2,548, ,077,669 7/1/16-6/30/17 2,606, ,171,104 Total $ 37,201,606 $ 59,522,571 Notes: (a) See Sheet 5. (b) See Sheet 2. MADISON CONSULTING GROUP, INC. 34

44 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 7 SHEET 2 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 SELECTION OF EXPERIENCE MODIFIER (1) Experience Modifier based on Reported Losses (a) (2) Experience Modifier based on Paid Losses (b) (3) Prior Selected Experience Modifier (c) (4) Selected Experience Modifier Notes: (a) See Sheet 3. (b) See Sheet 4. (c) See the June 30, 2016 actuarial report. MADISON CONSULTING GROUP, INC. 35

45 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 7 SHEET 3 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF EXPERIENCE MODIFIER - REPORTED BASIS Expected Actual Industry Expected Reported Reported Expected Portion Losses and Losses and Experience Accident Losses and Reported as ALAE as of ALAE as of Modifier Period ALAE (a) of 6/30/17 (b) 6/30/17 (c) 6/30/17 (d) [(5) (4)] (1) (2) (3) (4) (5) (6) 7/1/93-6/30/94 $ 714, % $ 710,484 $ 3,653, /1/94-6/30/95 747, % 743,438 3,155, /1/95-6/30/96 784, % 778,907 3,176, /1/96-6/30/97 822, % 816,040 4,097, /1/97-6/30/98 863, % 856,011 3,166, /1/98-6/30/99 906, % 896,989 4,611, /1/99-6/30/00 952, % 939,725 6,681, /1/00-6/30/01 995, % 980,703 7,719, /1/01-6/30/02 1,089, % 1,070,907 6,749, /1/02-6/30/03 1,149, % 1,127,952 5,708, /1/03-6/30/04 1,248, % 1,221,450 3,648, /1/04-6/30/05 1,401, % 1,367,499 3,003, /1/05-6/30/06 1,455, % 1,417,416 2,600, /1/06-6/30/07 1,585, % 1,542,461 2,825, /1/07-6/30/08 1,749, % 1,698,383 2,991, /1/08-6/30/09 1,981, % 1,915,996 2,636, /1/09-6/30/10 2,142, % 2,069,852 3,415, /1/10-6/30/11 2,034, % 1,961,471 2,316, /1/11-6/30/12 2,253, % 2,154,523 2,482, /1/12-6/30/13 2,221, % 2,090,213 2,943, /1/13-6/30/14 2,450, % 2,283,996 3,856, /1/14-6/30/15 2,495, % 2,245,801 2,388, /1/15-6/30/16 2,548, % 2,140,776 2,907, /1/16-6/30/17 2,606, % 1,741,436 5,134, Total $ 37,201,606 $ 34,772,429 $ 91,870, Total $ 25,524,839 $ 23,262,324 $ 36,498, Notes:: (a) See Sheet 5. (b) Based on reporting patterns in Exhibit 4, Sheet 1. (c) [(2) (3)] (d) Provided by EPISD. Losses have been limited to the applicable self-insured retentions and are net of all recoveries. MADISON CONSULTING GROUP, INC. 36

46 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 7 SHEET 4 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF EXPERIENCE MODIFIER - PAID BASIS Expected Actual Industry Expected Paid Losses Paid Losses Expected Portion and ALAE and ALAE Experience Accident Losses and Paid as as of as of Modifier Period ALAE (a) of 6/30/17 (b) 6/30/17 (c) 6/30/17 (d) [(5) (4)] (1) (2) (3) (4) (5) (6) 7/1/93-6/30/94 $ 714, % $ 686,206 $ 3,653, /1/94-6/30/95 747, % 713,521 3,155, /1/95-6/30/96 784, % 743,609 3,176, /1/96-6/30/97 822, % 774,086 4,034, /1/97-6/30/98 863, % 807,639 3,166, /1/98-6/30/99 906, % 842,571 4,611, /1/99-6/30/00 952, % 877,838 6,681, /1/00-6/30/01 995, % 911,009 7,446, /1/01-6/30/02 1,089, % 990,289 6,749, /1/02-6/30/03 1,149, % 1,038,268 5,708, /1/03-6/30/04 1,248, % 1,119,038 3,648, /1/04-6/30/05 1,401, % 1,247,002 3,003, /1/05-6/30/06 1,455, % 1,284,988 2,600, /1/06-6/30/07 1,585, % 1,388,690 2,825, /1/07-6/30/08 1,749, % 1,519,974 2,991, /1/08-6/30/09 1,981, % 1,702,007 2,636, /1/09-6/30/10 2,142, % 1,819,156 3,381, /1/10-6/30/11 2,034, % 1,698,992 2,316, /1/11-6/30/12 2,253, % 1,848,022 2,482, /1/12-6/30/13 2,221, % 1,781,457 2,937, /1/13-6/30/14 2,450, % 1,909,048 3,548, /1/14-6/30/15 2,495, % 1,876,491 2,278, /1/15-6/30/16 2,548, % 1,697,330 2,521, /1/16-6/30/17 2,606, % 909,822 1,342, Total $ 37,201,606 $ 30,187,053 $ 86,898, Total $ 25,524,839 $ 19,435,977 $ 31,862, Notes:: (a) See Sheet 5. (b) Based on payment patterns in Exhibit 4, Sheet 1. (c) [(2) (3)] (d) Provided by EPISD. Losses have been limited to the applicable self-insured retentions and are net of all recoveries. MADISON CONSULTING GROUP, INC. 37

47 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 7 SHEET 5 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF INDUSTRY EXPECTED LOSSES AND ALAE Industry Industry Factor to Adjust Expected Accident Manual Pure Retention to Historical Level Losses and Period Premium (a) Factor (b) Trend (c) Benefit (d) ALAE (e) (1) (2) (3) (4) (5) (6) 7/1/93-6/30/94 $ 1,206, $ 714,054 7/1/94-6/30/95 1,254, ,926 7/1/95-6/30/96 1,304, ,398 7/1/96-6/30/97 1,356, ,621 7/1/97-6/30/98 1,411, ,785 7/1/98-6/30/99 1,467, ,966 7/1/99-6/30/00 1,526, ,102 7/1/00-6/30/01 1,587, ,638 7/1/01-6/30/02 1,725, ,089,427 7/1/02-6/30/03 1,811, ,149,798 7/1/03-6/30/04 1,933, ,248,926 7/1/04-6/30/05 2,039, ,401,126 7/1/05-6/30/06 2,094, ,455,253 7/1/06-6/30/07 2,212, ,585,263 7/1/07-6/30/08 2,352, ,749,107 7/1/08-6/30/09 2,472, ,981,382 7/1/09-6/30/10 2,583, ,142,704 7/1/10-6/30/11 2,386, ,034,721 7/1/11-6/30/12 2,569, ,253,685 7/1/12-6/30/13 2,493, ,221,268 7/1/13-6/30/14 2,714, ,450,639 7/1/14-6/30/15 2,735, ,495,334 7/1/15-6/30/16 2,748, ,548,543 7/1/16-6/30/17 2,780, ,606,940 Total $ 48,767,900 $ 37,201,606 Notes: (a) Periods 7/1/00 through 6/30/16 based on payroll provided by EPISD and Texas loss costs effective July 1, Prior years based on assumed annual payroll growth of 4.0%. (b) Based on Texas Excess Loss Factors, effective July 1, See Exhibit 9 for self-insured retentions by accident period. (c) Based on an assumed residual loss trend of 0.5% and an average accident date underlying the current loss costs of July 1, (d) Reflects historical benefit level changes. (e) [ (2) (3) (4) (5) ] MADISON CONSULTING GROUP, INC. 38

48 EXHIBIT 8 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 CALCULATION OF RESERVE DISCOUNT FACTORS 4.0% RATE OF RETURN Remaining Present Payment Payments Value of Reserve Made in at Beginning Remaining Discount Period Period (a) of Period (b) Payments (c) Factor (d) (1) (2) (3) (4) (5) Notes: (a) Based on the development factors shown on Exhibit 4, Sheet 1. (b) Upward sum of Column (2). (c) Present value of Column (3) assuming an annual interest rate of 4.0%. (d) [(4) (3)] MADISON CONSULTING GROUP, INC. 39

49 EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 SUMMARY OF HISTORICAL SELF-INSURED RETENTIONS EXHIBIT 9 Accident Period Per Occurrence Retention (1) (2) 3/1/94-2/28/95 $500,000 3/1/95-2/29/96 $500,000 3/1/96-2/28/97 $500,000 3/1/97-2/28/98 $500,000 3/1/98-2/28/99 $500,000 3/1/99-2/29/00 $500,000 3/1/00-2/28/01 $500,000 3/1/01-2/28/02 $500,000 3/1/02-2/28/03 $500,000 3/1/03-2/29/04 $500,000 3/1/04-2/28/05 $2,000,000 3/1/05-2/28/06 $2,000,000 3/1/06-2/28/07 $2,000,000 3/1/07-2/29/08 $2,000,000 3/1/08-2/28/09 $2,000,000 3/1/09-4/30/10 $2,000,000 5/1/10-4/30/11 $2,000,000 5/1/11-4/30/12 $2,000,000 5/1/12-4/30/13 $2,000,000 5/1/13-4/30/14 $2,000,000 5/1/14-4/30/15 $2,000,000 5/1/15-4/30/16 $2,000,000 5/1/16-4/30/17 $2,000,000 5/1/17-4/30/18 $2,000,000 Note: Based on information provided by EPISD. Retentions apply to loss and ALAE combined. Assume no SIR for accidents prior to 3/1/94. MADISON CONSULTING GROUP, INC. 40

50 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 10 SHEET 1 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 DEVELOPMENT OF PROJECTED ULTIMATE CLAIM COUNTS Projected Projected Actual Reported Ultimate Actual Closed Ultimate Selected Reported Claim Claim Closed Claim Claim Ultimate Accident Claim Development Counts Claim Development Counts Claim Period Counts (a) Factor (b) [(2) (3)] Counts (a) Factor (c) [(5) (6)] Counts (1) (2) (3) (4) (5) (6) (7) (8) 7/1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ /1/16-6/30/ Total 14,449 14,460 14,204 14,539 14,460 Notes: (a) Provided by EPISD. (b) Based on historical claims data. See Exhibit 10, Sheet 2. (c) Based on historical claims data. See Exhibit 10, Sheet 3. MADISON CONSULTING GROUP, INC. 41

51 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 10 SHEET 2 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 HISTORICAL REPORTED CLAIMS Accident Age (in months) Period /1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ /1/16-6/30/ Link Ratios Ult. 7/1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ Average Average Last Average Last Avg 5 x hi & lo Wtd Avg Wtd Avg Prior Tail Selected Age-Ultimate Note: Provided by EPISD MADISON CONSULTING GROUP, INC. 42

52 EL PASO INDEPENDENT SCHOOL DISTRICT EXHIBIT 10 SHEET 3 WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 HISTORICAL CLOSED CLAIMS Accident Age (in months) Period /1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ /1/16-6/30/ Link Ratios Ult. 7/1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/ /1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/ /1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/ /1/10-6/30/ /1/11-6/30/ /1/12-6/30/ /1/13-6/30/ /1/14-6/30/ /1/15-6/30/ Average Average Last Average Last Avg 5 x hi & lo Wtd Avg Wtd Avg Prior Tail Selected Age-Ultimate Note: Provided by EPISD MADISON CONSULTING GROUP, INC. 43

53 APPENDIX A EL PASO INDEPENDENT SCHOOL DISTRICT WORKERS' COMPENSATION FUNDING ANALYSIS AS OF JUNE 30, 2017 ESTIMATED LOSS AND ALAE PAYMENTS DURING FUTURE FISCAL YEARS BASED ON CURRENT RETENTION LEVELS Outstanding Estimated Payments During Accident Reserves as Fiscal Period Beginning (b) Period of 6/30/17 (a) 7/1/17 7/1/18 (1) (2) (3) (4) Prior $ 19,477 $ 1,948 $ 1,948 7/1/93-6/30/ /1/94-6/30/ /1/95-6/30/ /1/96-6/30/97 65,924 7,821 6,704 7/1/97-6/30/ /1/98-6/30/ /1/99-6/30/ /1/00-6/30/01 303,367 24,983 24,983 7/1/01-6/30/ /1/02-6/30/ /1/03-6/30/ /1/04-6/30/ /1/05-6/30/ /1/06-6/30/ /1/07-6/30/ /1/08-6/30/ /1/09-6/30/10 68,486 4,535 4,535 7/1/10-6/30/ /1/11-6/30/ /1/12-6/30/13 462,969 42,088 35,073 7/1/13-6/30/14 651,091 67,761 53,030 7/1/14-6/30/15 721,566 78,558 66,919 7/1/15-6/30/16 1,228, ,369 99,325 7/1/16-6/30/17 4,157,872 2,024, ,273 7/1/17-6/30/18 4,180,119 1,458,862 1,325,098 7/1/18-6/30/19 4,242,925-1,480,781 Total $ 16,102,483 $ 4,027,572 $ 3,647,670 Notes: (a) See Exhibit 2, Sheet 1 for accident periods 6/30/16 and prior. Accident periods beginning 7/1/17 and 7/1/18 are from Exhibit 2, Sheet 2. (b) Based on the payout pattern shown on Exhibit 4. MADISON CONSULTING GROUP, INC. 44

54 $20,000,000 Worker's Compensation Fund Net Position Liability Balance $18,000,000 $16,000,000 $14,000,000 $12,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $9,000,000 $10,000,000 $8,000,000 $6,000,000 $9,000,000 $7,500,000 $7,500,000 $4,000,000 $2,000,000 $0 $8,782,283 $8,672,488 $8,198,699 $8,155,987 $8,934,529 $8,747,710 $7,961,160 $4,445,502 $4,035,166 $2,822,

55 $7,000,000 Worker's Compensation Fund District Contribution $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 $6,287,748 $4,506,031 $3,489,306 $2,867,828 $3,209,952 $3,185,040 $3,199,712 $0 $1,723,295 $2,359,

56 $8,000,000 Worker's Compensation Fund Claims Expense $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 $7,170,142 $6,170,868 $5,174,141 $4,121,524 $3,918,264 $2,883,750 $3,302,949 $3,383,428 $2,480,551 $2,903,550 $2,808,880 $3,407,084 $3,144,081 $3,165,611 $3,077,

57 El Paso ISD Travel Report Superintendent, Board of Trustees, & Cabinet October 2017 DESTINATION DEPART ARRIVE CONFERENCE FARE HOTEL CAR MEALS MISC REGISTRATION TOTAL SUBMIT FOR PAYMENT Superintendent Juan Cabrera Dallas 10/04/17 10/08/ TASA/TASB Convention $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 None San Francisco 10/31/17 11/03/17 Digital Promise- League of Innovation Schools Fall 2017/EDSURGE Fusion Conferenc None TOTALS Board of Trustees Bob Geske, Vice President Dallas 10/05/17 10/08/ TASA/TASB Convention None Al Velarde, Secretary - District 2 Dallas 10/05/17 10/08/ TASA/TASB Convention None Susie Byrd, Trustee - District 3 Dallas 10/05/17 10/08/ TASA/TASB Convention , /25/17 Diane Dye, Trustee - District 4 Dallas 10/05/17 10/08/ TASA/TASB Convention None Chuck Taylor, Trustee - District 5 Dallas 10/05/17 10/08/ TASA/TASB Convention , /25/17 Trent Hatch, President - District 6 Dallas 10/05/17 10/07/ TASA/TASB Convention , /25/17 Trustee - District 7- Vacant None TOTALS 1, , , , Executive Cabinet Carmen Arrieta-Candelaria Deputy Superintendent of Finance & Operations Austin 10/04/17 10/05/17 Texas Lottery Commission Meeting None Austin 10/18/17 10/18/17 Texas School Alliance (SPTS and Lead Staff) N/A Dallas 10/24/17 10/26/17 TASBO 2017 Accounting and Finance Symposium N/A Jeanne "Cezy" Collins Legal Counsel Dallas 10/06/17 10/06/17 Statewide in House Counsel Meeting None Jose Lopez- Chief of Staff Dallas 10/06/17 10/08/ TASA/TASB Convention N/A Austin 10/18/17 10/18/17 Texas School Alliance (SPTS and Lead Staff) N/A Houston 10/30/17 10/31/17 Texas District Charter Alliance N/A Melissa Martinez Executive Director of Community Engagement DALLAS 07/23/17 07/28/17 Texas Christian University Extended Edcucation Program , , /20/17 Elizabeth Saenz Deputy Superintendent of Academics & School Leadership Dallas 10/08/17 10/10/17 Comprehensive Literacy Summit N/A Dallas 10/05/17 10/08/ TASA/TASB Convention None Cleveland 10/18/17 10/22/17 Council of the Great City Schools 61st Annual Fall Conference N/A Vince Sheffield Deputy Superintendent of Administration Round Rock 10/18/17 10/19/17 Texas Title is Administrator Conference , /3/17 TOTALS $3, $ $ $ $ $2, $8, The activity listed on this Travel Report represents trips taken during the reporting period and could be pending final expenditure amounts. 48

58 TRAVEL BUDGET As of Travel Budget Organization Adopted Budget Amended Budget Encumbrance Transactions Balance Board of Trustees $ 30,000 $ 30,000 $ 3,214 $ 1,616 $ 25,171 Superintendent $ 60,000 $ 60,000 $ 1,304 $ 5,917 $ 52,779 Please note, the encumbrances and transactions reported may reflect travel costs for dates before or after Jul 1, 2017 through October 31, Travel Budget Organization Budget Transactions Ending Balance Board of Trustees $ 30,000 $ 24,795 $ 5,205 Superintendent $ 60,000 $ 59,774 $ Travel Budget Organization Budget Transactions Ending Balance Board of Trustees $ 34,000 $ 29,682 $ 4,318 Superintendent $ 60,350 $ 49,874 $ 10,476 49

59 BUDGET DEVELOPMENT CALENDAR DRAFT DATE TIME EVENT July N/A Finance Committee 25 Chief Appraiser Certifies Rolls for Taxing Entities 24 5:00 p.m. Board of Trustee - Regular Meeting August N/A Finance Committee 15 5:00 p.m. Board of Trustee - Regular Meeting September 18 9:30 a.m. Finance Committee 12 5:00 p.m. Board of Trustee - Regular Meeting October 16 9:30 a.m. Finance Committee 17 5:00 p.m. Board of Trustee - Regular Meeting November 15 9:30 a.m. Finance Committee 16 5:00 p.m. Board of Trustee - Regular Meeting December 18 9:30 a.m. Finance Committee 19 5:00 p.m. Board of Trustee - Regular Meeting January 8 Initiate Campus Staffing Review Process 16 5:00 p.m. Board of Trustee - Regular Meeting 23 9:30 a.m. Finance Committee 22 Budget Preparation and Data Entry Training - For Campuses 26 Distribution of Campus Per Capita Allocations and Budget Planners February 1 Initiate Revenue Projections 5 Budget Preparation and Data Entry Training - For Departments 9 Distributions of Department Budget Allocations 19 9:30 a.m. Finance Committee 20 5:00 p.m. Board of Trustee - Regular Meeting 28 Finalize Campus Staffing Review Process March 1 Initiate Budget and Staffing Review for Departments 9 Campus Budget Planners Due to Budget Office 20 5:00 p.m. Board of Trustee - Regular Meeting 27 9:30 a.m. Board of Trustee - Budget Workshop 30 Department Budget Data Entry Deadline for Budget Department Review April 16 9:30 a.m. Board of Trustee - Budget Workshop 16 Proposed Compensation Package Presentation to BOT Teacher Leadership Team - Budget Review Meeting 26 Districtwide Principal - Budget Review Meeting 17 5:00 p.m. Board of Trustee - Regular Meeting 30 Chief Appraiser Prepares Estimate of the Taxable Value of Property May 14 9:30 a.m. Board of Trustee - Budget Workshop 15 5:00 p.m. Board of Trustee - Regular Meeting Adoption of Compensation Package Approval of Preliminary Tax Rate June 7 Public Notice in Newspaper to Discuss the Budget and Tax Rate 7 Post Proposed Budget Summary on District's Website 18 9:30 a.m. Board of Trustee - Budget Workshop 19 5:00 p.m. Board of Trustee - Regular Meeting 19 Public Meeting and Adoption of Tax Rate and Budget 29 Provide Campuses and Departments with Adopted Budget Account Detail 50 *Dates Subject To Change As Needed

60 Subject/Title for Agenda Posting: Board of Trustees Executive Summary of Board Agenda Item MEETING DATE: 11/16/2017 AGENDA ITEM NO.: DEIC Approval: Leadership Team Approval: Approval of Revisions to Extra Performance Pay/Instructional Stipends Justification Statement: Provide compensation for EPISD employees. Purpose of Agenda Item: X Action Information Discussion Public Relations To be held in: X Open Session Agenda Format: X Regular Agenda Closed Session Consent Agenda Authority for Action: Legal/Local Policy Law or Rule X Other Staff Responsible: Carmen Arrieta-Candelaria/Martha Aguirre Presenter(s) Signature of Approval Deputy Superintendent/Executive Director Title DISTRICT IMPROVEMENT PLAN OBJECTIVE, GOAL OR NEED ADDRESSED: Goal 7: Establish a five-year budget plan. SUMMARY: Administration is seeking to amend the approved Extra Performance Pay/Instructional Stipends schedule for school year. The stipend requests are existing allocations that will be formally documented in the Extra Performance Pay/Instructional Stipend Listing. The revisions recommended to the schedule are as follows: Name of Stipend Extra Teaching Period Extended Day Schedule (DAEP Campus Only) Stipend Amount $1,500 per semester $1,500 per semester The Extra Teaching Period Stipend provides compensation for teachers assigned an extra period due to master schedule issues, increase in student enrollment or to provide credit recovery classes. The Extended Day Schedule Stipend provides compensation for teachers assigned to a Disciplinary Alternative Education Program (DAEP) campus and required to extend the work schedule in order to supervise students. The stipends proposed will not require additional budget allotments as they are built into the Adopted Budget. ADMINISTRATIVE RECOMMENDATION/MOTION: It is recommended that the Board of Trustees approve the revisions to Extra Performance Pay/Instructional Stipends. FUNDING SOURCE: Various Funding Programs ACCOUNT NO(S). Various Accounts FISCAL IMPACT AND COST: Immediate: $80,750 Immediate: Immediate: Future/Ongoing: As Needed_ IMPACT ON OTHER FUNCTIONS/OPERATIONS: N/A CONSEQUENCES OF NONAPPROVAL: Program objectives will be delayed IMPLEMENTATION TIMELINE: Upon Approval COMMENTS RECEIVED, IF ANY: N/A Background Materials: X Included in Packet To be Distributed at Meeting Number of Pages: 51

61 If the individual does not complete the stipend assignment, the stipend will be prorated based on the calendar for that stipend. For example, if a stipend has 45 days plus 5 duty days in the fall, and 18 days plus 5 duty days in the spring, an individual that only works the 45 days in the fall would be eligible to be paid the stipend rate /(45/63) and the 5 duty days at their current rate for the fall. If at the time they resign from the assignment, they have been paid more of the total stipend than the prorated earned amount, they would owe the district for the overpayment. Likewise if at the time they resign from the assignment, they have not been paid the prorated amount of the assignment, the district would owe the individual the remaining prorated amount. An individual who accepts an assignment after the start of the calendar for that assignment will receive the prorated amount for that stipend and any extra days that have yet to occur ATHLETICS High School Athletic $5,000 Coordinators Middle School Coordinator $1,000 Athletic Trainers $6,250. High School Coaches The coaching extra performance pay includes the specified stipend and, if applicable 5 or 10 extra days of pay at the coaches daily teacher rate of pay. No more than 15 extra days will be paid regardless of the number of coaching assignments. Football Varsity $12, days Offensive/Defensive $8, days Coordinators Assistant Varsity $6, days Basketball Varsity $8, days Assistant Varsity (3 Positions) $3, days DRAFT Volleyball Varsity $6, days Assistant Varsity (3 Positions) $3, days Varsity Football, Football Coordinators, Varsity Basketball, and Varsity Volleyball Coaches may not coach another sport. (Exceptions will be allowed on an interim or one year basis) Cross Country Golf Soccer Varsity $3, days Assistant Varsity $2, days Varsity $3, days Varsity $5, days Assistant Varsity $2, days Developmental $2,000 No Additional Days 52

62 Track Swimming High School Coaches (Cont.) Varsity $4, days Assistant Varsity $2, days Varsity $3, days Assistant Varsity $2, days Varsity Swimming Coach may receive an extra $800 stipend if in 3 meets, to include District Meet, the coach must: Have a minimum of 4 boys and 4 girls compete in each individual event except the 200 IM and the 500 Free Have a minimum of 2 boys and 2 girls compete in the 200 IM and the 500 Free Have a full team compete in all relays Tennis Varsity (Fall) $3, days Varsity (Spring) $3, days Assistant Varsity (Fall) $1, days Assistant Varsity (Spring) $1, days Wrestling Varsity $3, days Varsity (Girls) $3, days Assistant Varsity (Boys & Girls) $2, days Additional Head Wrestling Coach or Assistant Wrestling Coach will be determined by the following: Baseball Softball A program must have a full team (boys or girls) and one half of another team (boys or girls). Each campus principal along with the athletic director will determine what option best fits their campus. Varsity $5, days Assistant Varsity (2 Positions at this level) $2, days Varsity $5, days Assistant Varsity (2 Positions at this level) $2, days DRAFT Must have 8 athletes participate in both JV District tournaments (if scheduled) Middle School Coaches Football Head 8 th Grade $3,200 Assistant $2,400 Basketball Head 8 th Grade $1,800 Head 7 th Grade $1,800 B-Squad $1,000 Cross Country Head 8 th Grade $1,200 Soccer Middle School Coaches (cont.) Head 8 th Grade $1,200 Head 7 th Grade $1,200 53

63 Track Volleyball Wrestling Head 8 th Grade $1,700 Head 7 th Grade $1,700 Head 8 th Grade $1,800 Head 7 th Grade $1,800 B-Squad $1,000 Head 7 th /8 th Grade $1,200 B-Squad approved for programs based on participation and maintains a minimum of 25 athletes. Additional Athletic Extra Performance Pay Cheerleader HS Sponsor $4,500 HS Assistant Sponsor $2,000 MS Sponsor $1,000 A sponsor that is assigned both the Varsity and JV Cheerleading squads will receive the HS Sponsor stipend and one half of the HS Sponsor Assistant stipend All stipends paid at the end of the school year for Cheerleader Additional Athletic Extra Performance Pay (School Funded) Kick Dance $2,500 Intramurals $1,100 Kick Dance stipend paid at the end of the school year Degrees Master s Degree $1,000 Doctoral Degree $1,000 DRAFT An employee in one of these categories that has obtained a doctoral degree (or equivalent) will be eligible to receive the $1,000 Master s Degree stipend plus the $1,000 Doctoral Degree stipend. This will be added to the Teacher, Librarian, and Student Activities Manager Pay Schedules. National Board Certified Teachers Program NBC Classroom Teacher $2,000 The El Paso Independent School District wishes to encourage its teachers to become National Board Certified Teachers. The District will reimburse those teachers who successfully obtain National Board Certification up to $2,500 in program expenses that were paid directly by the teacher. In order to obtain the reimbursement, the teacher makes the commitment to remain a teacher with EPISD for two full years. These stipends will not be considered as part of a teacher s compensation in calculating his or her rate of compensation if they change to a non-teaching position. 54

64 Career Ladder Career Ladder II $2,000 Career Ladder III $3,500 Applies to teachers hired for the school year or earlier Student Activity Manager Student Activity Manager $6,000 Department Heads/Grade Level Leaders Elementary Grade Level 2-4 Teachers $500 Leaders Elementary Grade Level 5-9 Teachers $650 Leaders Elementary Grade Level 10+ Teachers $800 Leaders Grade levels are PK/K, 1 st, 2 nd, 3 rd, 4 th, 5 th Elementary non-grade level teachers such as PE or SPED may be included in ONE grade level as determined by the Principal MS Department Head Core $ Teachers Only MS Department Head Core $ Teachers Only MS Department Head Core $1, Teachers Only HS Department Head Non- $ Employees Core HS Department Head Non- $1, Employees Core HS Department Head Core $ Employees HS Department Head Core $1, Employees HS Department Head Core $1, Employees HS CTE Department Head $1,000 Core is Math, Science, ELA, Social Studies DRAFT For stipend purposes, the Principal will determine which core area MS Humanities will be assigned For stipend purposes, the Principal will determine how high school non-core departments are grouped Stipend paid at the end of the school year For stipend purposes, teachers may only be included in one department count as determined by the Principal LPAC LPAC $ or less Stipend paid at the end of the school year PreK PreK $1,100 Bilingual/Dual Language Bilingual / Dual Language $1,100 55

65 ROTC ROTC Instructors $1,500 ESOL ESOL 5+ Periods $1,100 ESOL 4 Periods $880 ESOL 3 Periods $660 ESOL 2 Periods $440 ESOL 1 Period $220 Dual Language MS and HS (Mathematics, Science, Social Studies) Dual Language 5+ Periods $1,100 Dual Language 4 Periods $880 Dual Language 3 Periods $660 Dual Language 2 Periods $440 Dual Language 1 Period $220 ESL Certification is required New Tech Middle and High School Minimum of 4 New Tech Sections plus the $2,500 additional listed requirements Participate in campus-based professional development instructional or curricular planning, share and analyze student data with other teachers, participate in parent involvement programs, Teacher Residency or New Tech annual conference, visit NTN school in the area, collaborate with NTN teachers from another campus, attend all scheduled NTN trainings, earn 1 NTN 101 Pathway Map badge and one NTN Certified Teacher Pathway badge per school year. Must teach at an EPISD New Tech campus for one full year. Stipend will be paid at the end of the year upon completion of all requirements. Power Up Mentor Power Up Mentor $1,000 After 120 hours of successful training. After training, serve as mentor to the campus. Stipend paid at the end of the school year DRAFT Secondary Instruction Math 5+ Periods $2,500 Math 4 Periods $2,000 Math 3 Periods $1,500 Math 2 Periods $1,000 Math 1 Period $500 Must be HS/MS Certified in Math Science 5+ Periods $2,500 Science 4 Periods $2,000 Science 3 Periods $1,500 Science 2 Periods $1,000 Science 1 Period $500 Must be HS/MS Certified in Science Dual Credit Teacher 5+ Periods $3,000 Dual Credit Teacher 4 Periods $2,400 56

66 Dual Credit Teacher 3 Periods $1,800 Dual Credit Teacher 2 Periods $1,200 Dual Credit Teacher 1 Period $600 Must be HS Certified in Subject Area and Accepted by Postsecondary Institution HS Dual Credit teachers are eligible for both dual credit stipends and secondary instruction stipends (i.e. math and science stipends) Extra Teaching Period Extra Duty Pay $1,500 p/semester Teachers assigned an additional class period are eligible for an Extra Teaching Period Stipend. All Extra Period Teaching Stipend requests must be processed through a RAP and presented to the Grants and Personnel Council (GAPC) for approval. The funding of the stipend requested will be treated as follows: Request for Extra Teaching Period Stipend due to credit recovery Campus Funded Request for Extra Teaching Period Stipend due to master scheduling conflicts, staffing FTE numbers will be evaluated to identify master schedule conflicts Campus Funded Request for Extra Teaching Period Stipend due to enrollment numbers District Funded Extended Schedule $1,500 p/semester Extended Schedule Stipends are allotted to teachers assigned to a Disciplinary Alternative Education Program (DAEP) campus and are required to extend their schedule to supervise students before or after school. Fine Arts Instrumental Music HS Band Director $10,000 HS Assistant Band Director $5,000 MS Band Director $3,700 MS Assistant Band Director $2,500 HS Orchestra $5,000 MS Orchestra $3,700 ES Orchestra $1,000 Guitar $2,500 Mariachi $1,000 DRAFT Itinerant personnel would receive only the highest extra performance pay for their specific assignment. Extra performance pay includes allowed salary for those days in excess of 187 days required by assignment. A teacher that is assigned to two (2) secondary campuses will receive one full stipend amount of the first assignment and one-half of the second assignment stipend. Example, a teacher assigned to MS Band and MS Assistant Band will receive the following stipend amounts: $3,700 + $1,250 ($2,500/2) Journalism / Publications Broadcasting $900 Paid at the end of the school year after receiving six productions. Literary Magazine $600 Paid as part of salary throughout the school year (May also be school programs, sports schedules, alumni programs, etc. as approved by Principal) School Paper $1,500 Paid as part of salary throughout the school year (Paid based on six issues) (Prorated) Yearbook $2,200 Paid as part of salary throughout the school year (Copy of yearbook given to District to be archived) Stipend paid at the end of the school year MS Yearbook $500 57

67 Performing Arts Vocal Music Visual Arts One Act Play Director $1,000 Performing Dance Group $2,500 HS Theater Director $5,000 HS Choir $5,000 MS Choir $3,700 ES Choir $500 Vocal Music Specialist $1,000 Art $500 HS Art $1,000 Special Education Instructional AIM / Transitional / Instructional Specialist $1,000 Autistic / BIC/CRC $1,000 Deaf Education $1,200 PPCD Pre-Kindergarten $2,100 PPCD Kindergarten $1,000 Homebound / Adaptive PE $1,000 Resource $1,000 VI Lead Teacher $5,000 Visually Impaired $4,000 Deaf Ed Interpreter $1,200 Professional Associate / LSSP Psychologist $11,000 Bilingual for any Sped Certified Personnel $1,100 Diagnostician $6,000 Doctorate for LSSP Psychologist $1,000 Lead Speech Therapist $1,000 Lead Therapist (all areas) $1,000 Lead Diagnostician $1,000 Lead Occupational Therapist $1,000 Lead Physical Therapist $1,000 Licensed Clinical Social Worker $500 Occupational / Physical Therapist $8,000 Speech Language Pathologist CYF $3,000 Speech Therapy (CCC) / Audiologist $11,000 DRAFT Career and Technical Education Instructional Stipends Health Science RN $2,500 Health Science Technology, non-rn $1,000 Agriculture Science $1,000 Trades and Industry $1,000 EMT, CNA & LVN After-Hour Rotation $2,000 58

68 Technology Education Instructional Stipends Technology Education 7+ Periods $1,050 Technology Education 6 Periods $900 Technology Education 5 Periods $750 Technology Education 4 Periods $600 Technology Education 3 Periods $450 Technology Education 2 Periods $300 Technology Education 1 Period $150 Family Consumer Science Instructional Stipends Family Consumer Science 7+ Periods $1,050 Family Consumer Science 6 Periods $900 Family Consumer Science 5 Periods $750 Family Consumer Science 4 Periods $600 Family Consumer Science 3 Periods $450 Family Consumer Science 2 Periods $300 Family Consumer Science 1 Period $150 Marketing Instructional Stipends Marketing 7+ Periods $1,050 Marketing 6 Periods $900 Marketing 5 Periods $750 Marketing 4 Periods $600 Marketing 3 Periods $450 Marketing 2 Periods $300 Marketing 1 Period $150 DRAFT Career and Technical Education Extra Performance Pay Stipends Cosmetology $2,500 Agriculture Science & Technology Certified Personnel responsible for cropland and $5,800 supervision of livestock High School Career and Technical Student Organization (CTSO) Coach Extra Performance Pay Coach $1,500 High School CTE Teachers will only be paid extra performance pay for coaching one student organization. Pay will be based on number of entries at the local / district CTSO competition. Up to $1,500 for 10 entries, $150 per student up to 10 students. Career and Technical Education Years of Teaching Based on Industry Work Experience Trade & Industry teachers are allowed up to 10 years of experience for documented related approved industrial work experience (2 years State, up to 8 years Local) 59

69 The positions listed below require a CTE Trade & Industry Certificate with verifiable current work experience within the industry. The work experience will be based on a Statement of Qualification approved by a recognized TEA ACP program and reviewed by the Career & Technical Education Director. CTED Building Maintenance Microcomputer Technology Telecommunications & Networking Piping Trades Plumbing Advertising Design Architectural & Engineering CAD Automotive Collision Automotive Technology CCTE Culinary Arts Fire Science Technology Diesel Technology Electrical Technology Electronics Technology Metals Technology Machining Technology Gaming & Animation Cosmetology Agriculture Science & Technology Law Enforcement Health Science Technology/HST Clinical Rotation Teacher Career and Technical Education Years of Teaching Based on Industry Work Experience (cont.) The following Career and Technical Education teachers are allowed 2-5 years of experience for approved documented related work experience. The work experience will be based on a Statement of Qualification approved by a recognized TEA ACP program and reviewed by the Career and Technical Education Director. *Marketing Education / CTED Marketing Dynamics *Currently employed and certified CTE teachers at EPISD found eligible to take the Marketing Education Certification Exam through verification of employment by the EPISD CTE Director during or in future years are not eligible to receive the 2-5 years of experience because the marketing certification was not a condition of employment when hired. TEA must also approve the Marketing Education Certification Exam application and requires that all teachers approved must be assigned marketing courses within their schedule on their assigned campus. DRAFT CTE Stipend for Advanced Math and Science Courses This stipend will only pertain to CTE teachers who are not math or science certified but who meet credentialed requirements in 19 TAC Chapter 231, Assignment of Public School Personnel Chart. To qualify to receive the stipend, the CTE teacher will need to teach a CTE math and/or science course which qualifies as a 4th year/advanced math or science credit. 5+ Periods $2,500 4 Periods $2,000 3 Periods $1,500 2 Periods $1,000 1 Period $500 Business Drama High School Academics / UIL Accounting $440 Computer Applications $440 One-Act Play Director UIL $1,000 One-Act Play Assistant Director UIL $500 60

70 English Literary Criticism $440 Ready Writing $440 Spelling & Vocabulary $440 Forensic TFA/NFL $750 Journalism Editorial Writing $440 Feature Writing $440 Headline Writing $440 Newswriting $440 Mathematics Calculator Applications $550 Number Sense $550 Computer Science $440 Mathematics $440 Science Biology $440 Chemistry $440 Physics $440 Speech Cross-Examination Debate $605 Lincoln-Douglas Debate $605 Informative Speaking $440 Persuasive Speaking $440 Poetry Interpretation $440 Prose Interpretation $440 Social Studies Current Issues & Events $440 Mock Trial $440 Social Studies $440 The stipend will be paid based on the number of entries at the actual UIL Meet (Pro-rated). Example: 4 entries for DRAFT Current Issues & Events $440, 3 entries $247.50, 2 entries $165, 1 entry $82.50 Drama English Mathematics Middle School Academics / UIL Full Partial Duel Acting $400 $268 Readers Theatre $400 $330 Spanish Drama $400 $330 Ready Writing $400 $268 Spelling & Vocabulary $400 $268 Calculator Applications $400 $330 Number Sense $400 $330 Mathematics $400 $268 61

71 Speech Impromptu Speaking $400 $268 Modern Oratory $400 $268 Poetry Interpretation $400 $268 Prose Interpretation $400 $268 Spanish Poetry (Native) $400 $268 Spanish Poetry (Non-Native) $400 $268 Spanish Prepared Speech (Native) $400 $268 Spanish Prepared Speech (Non-Native) $400 $268 Social Studies Social Studies $400 $268 The stipend will be paid based on the number of entries in the actual UIL Meet (Pro-rated). Example: 3 entries for Number Sense $400, 2 entries $266.67, 1 entry $ Academic Coordinator Full Partial HS Campus Coordinator $275 $100 MS Campus Coordinator $275 $100 Academic Decathlon and High-Q Coaches Texas Academic Decathlon Head Coach $2,500 Assistant Coach $2,050 High-Q Coach $2,050 Destination Imagination (K-12) Coach $440 DRAFT Food Service Competency Trainer $300 The El Paso Independent School District does not discriminate in its educational programs or employment practices on the basis of race, color, age, sex, religion, national origin, marital status, citizenship, military status, disability, genetic information, gender stereotyping and perceived sexuality, or on any other basis prohibited by law. Inquiries concerning the application of Titles VI, VII, IX, and Section 504 may be referred to the District compliance officer, Patricia Cortez, at ; Section 504 inquiries regarding students may be referred to Verna Ball at El Distrito Escolar Independiente de El Paso no discrimina en los programas de educación o en prácticas de empleo usando el criterio de raza, color, edad, sexo, religión, origen nacional, estado civil, ciudadanía, estado militar, discapacidad, información genética, estereotipo sexual o sexualidad percibida, u otra práctica prohibida por la ley. Preguntas acerca de la aplicación del título VI, VII o IX, y la Sección 504 pueden ser referidas al oficial del distrito, Patricia Cortez al ; preguntas sobre 504 tocante a estudiantes pueden ser referidas a Verna Ball al Revision Approved by the Board of Trustees, June 21,

72 Board of Trustees Executive Summary of Board Agenda Item Subject/Title for Agenda Posting: Approval of Employee One-Time Bonus Pay Out MEETING DATE: 11/16/2017 AGENDA ITEM NO.: DEIC Approval: Leadership Team Approval: Justification Statement: Provide compensation for EPISD employees. Purpose of Agenda Item: Action X Information Discussion Public Relations To be held in: X Open Session Agenda Format: Regular Agenda Closed Session X Consent Agenda Authority for Action: Legal/Local Policy Law or Rule X Other Staff Responsible: Carmen Arrieta-Candelaria/Martha Aguirre Presenter(s) Signature of Approval Deputy Superintendent/Executive Director Title DISTRICT IMPROVEMENT PLAN OBJECTIVE, GOAL OR NEED ADDRESSED: Goal 7: Establish a five-year budget plan. SUMMARY: Pursuant to Board Policy CE (Local) Annual Operating Budget, the Board shall amend the budget when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources. During the Special Board Meeting of June 21, 2017, the District s Operating Budget was adopted. In the course of the presentation, the Board of Trustees directed Administration to conduct a cost analysis for the implementation of an employee one-time bonus pay out. As noted during the budget adoption discussion, the proposed budget did not have the capacity to fund the proposed employee one-time bonus pay out. As noted in the schedule attached, a cost analysis was conducted utilizing several bonus pay-out options the amounts ranged from $200 to $1,000. The cost of implementing the proposed amounts varied from $1.8M to $7.5M respectively. The available Unreserved/Undesignated Fund Balance amount based on days is 74.1 days. Funding for the employee one-time bonus payout would have to be funded out of the District s Unreserved/Undesignated Fund Balance. ADMINISTRATIVE RECOMMENDATION/MOTION: As directed by Board of Trustee, Administration is providing the budgetary cost impact of an employee one-time bonus pay out. FUNDING SOURCE: Unreserved/Undesignated Fund Balance ACCOUNT NO(S). Various Accounts FISCAL IMPACT AND COST: Immediate: Up to $7.5M Future/Ongoing: IMPACT ON OTHER FUNCTIONS/OPERATIONS: N/A CONSEQUENCES OF NONAPPROVAL: Additional Compensation IMPLEMENTATION TIMELINE: Upon Approval COMMENTS RECEIVED, IF ANY: N/A Background Materials: X Included in Packet To be Distributed at Meeting Number of Pages: 63

73 Estimated Cost of One-Time Bonus Updated Local (Funds 1XX) FTE Description Total FTE Count Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Exempt 5,161 $ 300 $ 1,548,300 $ 250 $ 1,290,250 $ 500 $ 2,580,500 $ 1,000 $ 5,161,000 Non-Exempt 2,381 $ 200 $ 476,200 $ 250 $ 595,250 $ 500 $ 1,190,500 $ 1,000 $ 2,381,000 Grand Total 7,542 $ 2,024,500 $ 1,885,500 $ 3,771,000 $ 7,542,000 Food Service (Fund 240) FTE Description Total FTE Count Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Exempt 11 $ 300 $ 3,300 $ 250 $ 2,750 $ 500 $ 5,500 $ 1,000 $ 11,000 Non-Exempt 480 $ 200 $ 96,000 $ 250 $ 120,000 $ 500 $ 240,000 $ 1,000 $ 480,000 Grand Total 491 $ 99,300 $ 122,750 $ 245,500 $ 491,000 Other Funds FTE Description Total FTE Count Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Exempt 389 $ 300 $ 116,700 $ 250 $ 97,250 $ 500 $ 194,500 $ 1,000 $ 389,000 Non-Exempt 220 $ 200 $ 44,000 $ 250 $ 55,000 $ 500 $ 110,000 $ 1,000 $ 220,000 Grand Total 609 $ 160,700 $ 152,250 $ 304,500 $ 609,000 Grand Total FTE Description Total FTE Count Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Proposed Bonus Total Cost Exempt 5,561 $ 300 $ 1,668,300 $ 250 $ 1,390,250 $ 500 $ 2,780,500 $ 1,000 $ 5,561,000 Non-Exempt 3,081 $ 200 $ 616,200 $ 250 $ 770,250 $ 500 $ 1,540,500 $ 1,000 $ 3,081,000 Grand Total 8,642 $ 2,284,500 $ 2,160,500 $ 4,321,000 $ 8,642,000 Available Fund Balance as of June 30, Days 64

74 + MEETING DATE: 11/16/2017 AGENDA ITEM NO.: DEIC Approval: Leadership Team Approval: Board of Trustees Executive Summary of Board Agenda Item Subject/Title for Agenda Posting: Approval of Budget Amendment for Literacy Plan Justification Statement: Amendment will provide adequate funding for District operations. Purpose of Agenda Item: X Action Information Discussion Public Relations To be held in: X Open Session Agenda Format: Regular Agenda Closed Session X Consent Agenda Authority for Action: Legal/Local Policy Law or Rule X Other Staff Responsible: Carmen Arrieta Candelaria/Martha Aguirre Presenter(s) Signature of Approval Deputy Superintendent/Executive Director Title DISTRICT IMPROVEMENT PLAN OBJECTIVE, GOAL OR NEED ADDRESSED: Goal 7: Establish a five year budget plan. SUMMARY: Pursuant to Board Policy CE (Local) Annual Operating Budget, the Board shall amend the budget when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources. The budget amendment presented is to request funding for the Literacy Plan. Funding will come from the District s Unreserved Fund Balance. The allocations will be made to the following functions as noted below: GENERAL OPERATING FUNDS Instruction $1,774, Curriculum Development and Instr. Staff Dev. $ 91,434 $1,865,434 ADMINISTRATIVE RECOMMENDATION/MOTION: It is recommended that the Board of Trustees approve this budget amendment to the fiscal year budget in the amount of $1,865,434 to the General Operating Fund. FUNDING SOURCE: Unreserved & Reserved Fund Balance ACCOUNT NO(S). Various Accounts FISCAL IMPACT AND COST: Immediate: $1,865,434 Future/Ongoing: IMPACT ON OTHER FUNCTIONS/OPERATIONS: N/A CONSEQUENCES OF NONAPPROVAL: Program objectives will be delayed IMPLEMENTATION TIMELINE: Upon Approval COMMENTS RECEIVED, IF ANY: N/A Background Materials: X Included in Packet To be Distributed at Meeting Number of Pages: 65

75 TO/FROM FUND FUNCTION AMOUNT FROM GENERAL OPERATING FUND Unreserved/Undesignated Fund Balance $ 1,865,434 TO Budget Amendment - Literacy Plan - Fund Balance Request INSTRUCTIONAL SUPPLIES $ 1,774, INSTRUCTIONAL STAFF DEVELOPMENT $ 91,434 $ 1,865,434 BUDGET AMENDMENT BY DEPARTMENT Connecting Languages/Dual Language Division Curriculum & Instruction Special Education Services TOTAL $ $ $ $ 1,090, , ,691 1,865,434 66

76 LITERACY PLAN BUDGET Updated: 11/8/20178:55 PM DEPARTMENT PROGRAM/STRA TEGY DESCRIPTION COST FUNDING SOURCE ADDITIONAL INFORMATION FUND FUNCTION TIER 1 Curriculum & Instruction, Connecting Languages/Dual Language, SPED Guided Reading/Balanced Literacy All students are screened and identified as one of the five stages of reading (Pre- A, Emergent, Early, Transitional, or Fluent). Elementary students are taught using guided reading strategies and secondary students are taught with a laser focus on academic vocabulary and close reading. Request is for additional resources and training needed. $ 577,119 FUND BALANCE $ 21,914 FUND BALANCE $ 133,750 FUND BALANCE $ 53,520 FUND BALANCE Substitutes $568,869 and $8,250 Extra Duty Pay $21,600 and $314 Guided Reading Teacher Workstations Guided Reading - Literature Books Connecting Languages/Dual Language DRA/EDL Developmental Reading Assessment/Evalu acion del Desarrollo de la Lectura Assessment tool to measure early literacy (K-2) in both English and Spanish. Substitute costs for administering assessments. $ 520,000 FUND BALANCE $ 60,000 FUND BALANCE $ 313,481 FUND BALANCE Kits; One Time Purchase - $520,000 Software License; Annual - $60,000 Substitutes $309,000 and $4, TIER 3 Curriculum & Instruction My Virtual Reading Coach Provide intense reading interventions for students struggling with foundational reading skills $ 169,650 FUND BALANCE Software License $ 16,000 FUND BALANCE Professional Development - Support TOTAL $ 1,865,434 67

77 Board of Trustees Executive Summary of Board Agenda Item MEETING DATE: 11/16/2017 AGENDA ITEM NO.: DEIC Approval: Leadership Team Approval: Subject/Title for Agenda Posting: Approval of Budget Amendment to Request Funding for the Purchase of Software, Instructional Supplies and Materials, Instructional Related Personnel Costs, Professional Development, Testing Materials and Fees, and Program Evaluation Services Justification Statement: Amendment will provide adequate funding for District operations. Purpose of Agenda Item: X Action Information Discussion Public Relations To be held in: X Open Session Agenda Format: Regular Agenda Closed Session X Consent Agenda Authority for Action: Legal/Local Policy Law or Rule X Other Staff Responsible: Carmen Arrieta-Candelaria/Martha Aguirre Presenter(s) Signature of Approval Deputy Superintendent/Executive Director Title DISTRICT IMPROVEMENT PLAN OBJECTIVE, GOAL OR NEED ADDRESSED: Goal 7: Establish a five-year budget plan. SUMMARY: Pursuant to Board Policy CE (Local) Annual Operating Budget, the Board shall amend the budget when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources. The budget amendment presented is to request funding for new initiatives for the FY18 and carry-over of funds from FY17 for the High School Allotment Program. Funding will come from the District s Unreserved and Reserved Fund Balance respectively. The allocations will be made to the following functions as noted below: GENERAL OPERATING - FUNDS 185, 186 & Instruction $ 367, Curriculum Development and Instr. Staff Dev. $ 458, Instructional Leadership $ 100, School Leadership $ 29, Guidance, Counseling and Evaluation $ 1, Social Work Services $ 35, Extra Curricular Activities $ 41, General Administration $ 147, Facilities, Maintenance and Operations $ 2,074 $1,180,917 ADMINISTRATIVE RECOMMENDATION/MOTION: It is recommended that the Board of Trustees approve this budget amendment to the fiscal year budget in the amount of $1,180,917 to the General Operating Fund. FUNDING SOURCE: Unreserved & Reserved Fund Balance ACCOUNT NO(S). Various Accounts FISCAL IMPACT AND COST: Immediate: $1,180,917 Future/Ongoing: IMPACT ON OTHER FUNCTIONS/OPERATIONS: N/A CONSEQUENCES OF NONAPPROVAL: Program objectives will be delayed IMPLEMENTATION TIMELINE: Upon Approval COMMENTS RECEIVED, IF ANY: N/A Background Materials: X Included in Packet To be Distributed at Meeting Number of Pages: 68

78 Budget Amendment - Fund Balance Request TO/FROM FUND FUNCTION AMOUNT FROM GENERAL OPERATING FUND Unreserved/Undesignated Fund Balance $ 1,021,586 Reserved Fund Balance $ 159,331 $ 1,180,917 TO INSTRUCTIONAL SUPPLIES $ 124, INSTRUCTIONAL STAFF DEVELOPMENT $ 26, INSTRUCTIONAL LEADERSHIP $ 100, SCHOOL LEADERSHIP $ 29, GUIDANCE, COUNSELING AND EVALUATION SERVICES $ 1, SOCIAL WORK SERVICES $ 35, EXTRA CURRICULAR ACTIVITIES $ 41, GENERAL ADMINISTRATION $ 147, FACILITIES MAINTENANCE AND OPERATIONS $ 2,074 $ 506,897 SCE FUNDS INSTRUCTIONAL STAFF DEVELOPMENT $ 231,350 $ 231,350 H S A INSTRUCTION $ 242, INSTRUCTIONAL STAFF DEVELOPMENT $ 200,000 $ 442,670 LOCAL FUND $ 231,350 LOCAL FUND $ 442,670 LOCAL FUND $ 506,897 BUDGET AMENDMENT BY DEPARTMENT Community Engagement Curriculum & Instruction Districtwide Special Education Services Student and Parent Services Young Women's Academy TOTAL $ $ $ $ $ $ $ 147, , , ,000 35, ,000 1,180,917 69

79 ADDITIONAL BUDGET REQUESTS Updated: 10/25/20171:39 PM DEPARTMENT BUDGET UNIT AMOUNT JUSTIFICATION FUND FUNCTION Community Engagement 732 $ 147,566 K12 Insight - Customer Services Curriculum & Instruction 801 $ 159,840 Junior SAT Tests - DW Curriculum & Instruction 801 $ 231,350 Achieve Curriculum & Instruction 801 $ 24,331 PSP for IR Campuses (4), AIE Conf for IR Campuses, Teacher Training - Supplies, Substitutes for IR and Priority Focus campuses Districtwide 995 $ 82,830 Allocate Unused FY17 High School Allotment Funds XXX Districtwide 995 $ 200,000 Allocate Unused FY17 High School Allotment Funds XXX Special Education Services 822 $ 100,000 SPED Program Evaluation Student and Parent Services 817 $ 35,000 Bullying Reporting App Young Women's Academy 019 $ 124,352 Start Up Costs XXX Young Women's Academy 019 $ 2,500 Start Up Costs XXX Young Women's Academy 019 $ 29,074 Start Up Costs XXX Young Women's Academy 019 $ 1,000 Start Up Costs XXX Young Women's Academy 019 $ 41,000 Start Up Costs XXX Young Women's Academy 019 $ 2,074 Start Up Costs XXX TOTAL $ 1,180,917 70

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