Good morning!  I can't believe it is already October and the school year is passing so fast.  I hope you had a good weekend and enjoyed the great weather we have been having.

I know that with all the concern about what has been happening in the financial world many are wondering what effect this may have on us as a school district.  No doubt our country has been facing a financial predicament and we all see headlines and read articles about these recent economic events and their impact on financial institutions and the stock market.  All the media outlets including the internet, talk radio, television, and the newspapers have focused our attention on the economic situation, and this has created a sense of instability and nervousness among all of us.

With all of this occurring I want to share with you the District's awareness and how we are viewing the current conditions of the financial market.  I have been visiting with our finance leaders in the District every day about the situation to see if anything is changing that would cause more concern than we already have.  I want to emphasize that we are in solid financial shape and, while many banks and other institutions have sought financial help to remain in business, we have adequate cash and investments to meet payrolls and pay our bills.  Since state law does not allow school districts to invest in the stock market and we only invest in government-backed securities, we believe the District's cash and investments are not at risk.

However, there is no doubt that all of the things affecting the economy will impact Northside in terms of cost.  The recent rise in fuel prices, along with price increases in other goods and services, will have an effect on our budget.  Economic downturns, such as we are experiencing, could affect our revenue stream because of decreases in tax base growth, tax collections, and investment earnings.  At the state level, a similar effect on their revenue stream could occur, especially if the sales tax income comes in less than anticipated.  All of this could have an impact on the current budget and could affect future budgets.  With all of this occurring I have visited with Senior Staff and Cabinet and we are going to take an even more conservative approach to expenditures than we normally do.  We are not going to fill positions unless absolutely necessary and I have asked that all expenditures be scrutinized for absolute necessity.  I am emphasizing the need for caution on all expenditures until we know the future direction of the country in terms of the economy.  I know Congress has taken action to address this situation, but we will all have to wait to assess the impact of this action.

Our commitment to our bond program remains intact, and as you know we will be looking at opening nine schools in the next two years after opening five schools this year.  There is concern about the interest rates we may have to pay on bonds that will sell in the future to continue the projects we have going, but I do know our finance people are meeting with our financial advisors to discuss the future and what the implications of this economic situation are for our bond program.  We are simply taking a guarded approach to our budget to help us navigate through these rough economic times, and I know that the financial markets will be monitored on a daily basis and we will modify our financial plans accordingly.

As all of this continues and school districts are being held to a target revenue figure based on 2006-07 revenues, it is even more imperative that the Legislature take important steps in the upcoming session to ensure the financial stability of school districts.  Nothing should be more important than ensuring the future of our children's education.

I want to remind everyone that today begins the Annual Enrollment period for Health Benefits and Insurance.  This enrollment period will continue through October 24.  In addition to the traditional PPO and HMO plans previously offered, this year employees may choose a High Deductible Health Plan (HDHP) which also allows employees to establish a Health Savings Account (HSA).  The HDHP offers lower monthly premiums, and the HSA allows employees who choose the HDHP to establish a long term savings plan for medical expenses.

Each employee should have received an Annual Enrollment package, and in this package is information on the various plans and enrollment fairs.  Representatives from the insurance companies will be on hand at these fairs to answer questions, and employees will also be able to receive a free flu shot at the fairs.  I certainly encourage each employee to review the materials and complete their enrollment using the instructions included in the Annual Enrollment materials package.

As I close this Monday Message, I want to remind you that even though we all have concerns about the financial predicament our country is facing, the job we do each day in educating our children is so important.  You have heard me say many times that America is the great country it is because of public education and the fact we believe in educating all children.  Our nation, our state, and our school district all have challenges to overcome, but let us remember that we must always focus on helping each child be successful.  "We Believe" in what we do every day, in that  we make it possible for each child to learn, grow, and become a better person.

Thanks for all you do and have a great week!