Our base enrollment was calculated at 1418 on September 30. We have decreased 1 student since that time (decrease was at Sunnyside).

Please let us know if you can receive the �Notes to Key Communicators� via email. This will help save the district postage and supplies. Just send an email requesting the publication electronically to

The following are new personnel or persons in new positions in the Kellogg School District since last month:

The company is still processing bids from subcontractors. As a requirement for the DEQ permit, we will have an open hearing on the KMS water heater today at 4:00 PM. We should begin some electrical projects in November. Most of this early work will not be visible as it may be pipes in tunnels and lights in ceilings. If we are working in a building, we will inform staff members ahead of time.

The review of the meeting is not the official school board minutes. The minutes are published later.

� Chairman Morgan called the meeting to order and led the group in the Pledge of Allegiance to the Flag

� The board approved the minutes of the last meeting with an amendment on the enrollment report that �we were at 1421 last year at this time for a loss of 28 students.�

� The board heard the business manager�s report. Mrs. Rinaldi requested that the board have a financial planning workshop later this month to review our current status. October 24, 2006 at 4:00 PM was considered a tentative date and time. The superintendent will contact the board this week to lock in the time and the workshop will be publicized.

� The auditing committee made a recommendation to pay bills in the amount of $ 1,440,790.50. This amount is larger than normal due to the first payment to Siemens for design and development.

� The board heard an updated enrollment report from the superintendent. Our enrollment on Oct 9, 2006 was 1417, which is down 1 student from our Sept 30^th count.

� There was no report on building and grounds. Mr. Etherton will have a progress report on the Energy project at the next board meeting in November.

� The board received the technology report from Mr. Knox. Parent Connect now serves 225 families. Gwen Johnson needs to be commended for her support of this program.

� The board received the curriculum, instruction and assessment report. Bonnie Farmin was facilitating a regional teleconference with the state department of education regarding the upcoming budget proposal. Her report noted that testing has begun and will last until November 10^th. Additionally, the Federal Carl Perkins funds have been approved that support our professional technical classes at KHS.

� The board received the special education status report from Mr. Bostick. He reported that the Kathy Nansel is to be commended for achieving approval for the Evenstart grant this school year. Also in Mr. Bostick�s report is that RTI training for Sunnyside and Pinehurst will continue on Oct 23^rd and 25th.

� The board received a report from Mrs. Hansen-Barber regarding current activities at Canyon. In her report, she demonstrated the use of the new Smart Board and clickers through audience participation. Mrs. Hansen-Barber also discussed the year-long art activities that will be happening as a result of their new grant. Canyon is also implementing a recess before lunch schedule with positive results in milk consumption, peaceful atmosphere at lunch and increased collaboration time.

� The board heard a report from Jon Groth regarding a possible proposal for a well on Pinehurst school grounds. He indicated that the next step would be for Kingston Water District to hire an engineer to study the well possibilities. The board indicated positive interest in hearing the results of the study in a future report.

� The board approved a bid from Western Mountain Bus & Parts Sales for a Thomas Body 66 passenger bus. Of the two bids submitted, the bid was the only one for the preferred Thomas Body. Terry Rinaldi said the funds were available from depreciation to pay for the new bus.

� The board directed the superintendent to share a new set of policies from the policy attorney with the review groups.

� The board reviewed a request to hire a teaching assistant at Sunnyside Elementary. Since the class enrollment had dropped this week and we are in a reduction of staff year, the board tabled the request until next month for further consideration.

� The board denied a request to add sixth grade wrestling. A recommendation was made that the group consider submitting the request to the supplemental levy committee next year.

� The board approved open enrollment requests as recommended by the principals.

� The board reported on the September tour of the buildings, noting how much they enjoyed seeing the smart boards in use in the classrooms.

� The board set plans to attend the ISBA Region 1 meeting on October 16^th in Rathdrum.

� The board received a budget reduction report from the superintendent, indicating new areas where we have saved money in a move to get our budget balanced.

� According to Idaho Code 67-2345 (2) The board adjourned to executive session to consider personnel issues.

The vision for the future of Kellogg School District No. 391 is to be recognized as a district respected for exemplary quality. This will be accomplished by meeting the needs of students and challenging them to excel through an open and accessible partnership with our community.

MISSION STATEMENT

Kellogg School District � a partnership of students, parents, educators, and community members � committed to ensuring a safe, nurturing environment where people are challenged to:

- demonstrate individual

responsibility;

- attain academic excellence;

- achieve personal success;

- involve themselves in life-long

learning activities.

Why is the district in a budget reduction mode when we just passed the supplemental levy last spring?

The state supports a basic program that only meets minimum requirements for accreditation. Our district and others in the state are asking for an increase in the unit factor monies for next year. Even if the increase is approved, it will provide only limited assistance to districts to pay for the spiraling cost increases of items such as employee health care insurance, property insurance, utilities and gas that have taken place over the last six year period.

With no new state funds or an increase in the supplemental levy for the previous school year, the Kellogg District used approximately 70% of its fund balance (savings account) to pay expenses. This means that the district spent more than it received in revenues.

The supplemental levy that was passed last spring has helped but not fully covered the greatly increased cost of school programs or the new programs added for the 2006-07 school year. Also, due to a loss of enrollment, both last year and this year, our state funding has decreased. We cannot reduce expenses without cutting programs and corresponding personnel.

Our school district has always been cognizant of our financial responsibilities and our accountability to our patrons. After using fund balances to cover increased costs, we have also had to use Federal Forest funds to help pay for on-going programs. Legislators are telling us that this source of revenue is being reduced over the next few years to the point where it will not exist any more. Since we have on-going expenses paid by these funds which will go away, it becomes much like living on a credit card. We must reduce our budget in order to live within our means and not rely on declining forest funds. If we do not reduce our expenditures and improve our fund balance, we would be in financial trouble.

OCTOBER 11, 2006

MISSION STATEMENT