[1. Meeting Opening]
[2. Information Items]
[00:02:00]
REALLY TRY TO PAINT THE PICTURE OF WHERE OUR FINANCES STAND TODAY.
AND WHERE WE THINK THEY'RE GOING.
I WOULD BE REMISS IF I DIDN'T SAY THANK YOU TO CECILY.
IN ALONG WITH HER SUPPORT IN PUTTING THIS TOGETHER.
OBVIOUSLY WITH HER EXPERIENCE AND SKILL SET, WE'RE BLESSED TO HAVE WHAT WE HAVE IN OUR DEPARTMENT. THANK YOU TO HER.
LET'S DIVE IN. TONIGHT REALLY THE THEME I WOULD LIKE TO PRESENT IS A QUICK SCHOOL FINANCE REVIEW. I THINK IT HELPS US SET THE TABLE FOR WHERE WE'RE GOING TO GO AND TURN IT OVER TO WHERE WE WERE, WHERE WE ARE RIGHT NOW AND ULTIMATELY WHERE WE THINK WE'RE GOING WITH THE NEWEST LEGISLATION.
SCHOOL FINANCE REVIEW. LET'S LEVEL SET WITH THE VARIOUS BUCKETS WE HAVE AVAILABLE WHEN IT COMES TO SCHOOL FINANCE. I'M HITTING THE BIGGEST OF THOSE BUCKETS. THE EDUCATION FUND, AS WE TALKED ABOUT, IN THE PAST, THIS IS THE SAME SLIDE I USED IN PREVIOUS CONVERSATIONS IS WHAT IS USED TO FUND BASICALLY ANYTHING AND EVERYTHING RELATED TO THE CLASSROOMS. THESE ARE OUR TEACHERS, TEACHER AIDES, ALL OF OUR SUPPLIES IN THE CLASSROOM, TECHNOLOGY, BUILDING LEVEL ADMINISTRATORS. EVERYTHING THAT GOES REALLY INSIDE THE SCHOOL. THIS IS NOT RELATED TO PROPERTY TAXES OR TAX LEVY. OUR TUITION SUPPORT, IF YOU WILL. SO THAT NUMBER TO COMPLETE THE '24/'25 YEAR IS $165 MILLION. UNLIKE THE EDUCATION FUND, THE OPERATIONS FUND, FUNDS EVERYTHING RELATED TO THE OPERATION OF THE SCHOOL DISTRICT.
THIS WOULD BE OUR TRANSPORTATION, OUR NON- CLASSROOM FOLKS, OUR CENTRAL OFFICE STAFF, OUR MAINTENANCE STAFF, OUR VARIOUS PROJECTS, OUR ELECTRICITY COSTS, OUR NATURAL GAS COSTS ALL THE THINGS IT TAKES TO RUN THE PROPERTIES THAT WE HAVE AS A SCHOOL DISTRICT.
THERE'S A MAXIMUM LEVY THAT IS ESTABLISHED EVERYTHING YEAR THAT WE CAN RAISE IN THAT FUND. AND FOR 2025, THAT LEVY FOR HSE SCHOOLS IS LITTLE OVER $40 MILLION.
THAT IS 100% PROPERTY TAX DRIVEN.
SO OUR LOCAL PROPERTY OWNERS PAY PROPERTY TAX THAT LEADS INTO THE FUNDING OF THE OPERATIONS FUND.
A REALLY IMPORTANT FUND FOR HSE SCHOOLS IS FUNDED THROUGH PROPERTY TAX. AND AS YOU KNOW, PRIOR TO MY TIME HERE, THERE WAS A RENEWAL OF THAT AT A RATE OF .1995. WE WENT AND ASKED FOR THAT MAXIMUM RATE IN 2025 BUDGET AND AS A RESULT THAT PRODUCED A LEVY OF A LITTLE OVER $26 MILLION.
ALMOST ALL OF THOSE DOLLARS FUND TEACHER SALARY, WAGES AND BENEFITS. SO WITHOUT THAT REFERENDUM, YOU CAN IMAGINE THE NUMBER OF TEACHERS THAT AREN'T BEING FUNDED TO SUPPORT THE WORK THAT'S TAKING PLACE IN THE CLASSROOM. SO PIVOTAL FOR THE WORK THAT WE'RE DOING. THE OTHER FUND THAT GOES
[00:05:01]
ALONG WITH THESE, WHICH IS ALSO PROPERTY TAX DRIVEN IS OUR DEBT SERVICE FUND. OUR DEBT SERVICE BUCKET DESCRIBES ITSELF. PAYS OUR DEBT.IT'S THE EXPENSES THAT WE PUSH OUT INTO THE FUTURE.
WE HAVE DONE SEVERAL OF THEM THIS YEAR WITH GO BONDS, THE HIG PROJECT, FCI AND VARIOUS PROJECTS, EXCUSE ME, WELL BEFORE MY TIME HERE.
THERE ARE TWO DIFFERENT TYPES OF DEBT SERVICE FUND.
ONE ANY DEBT THAT WAS APPROVED THROUGH A REFERENDUM, THAT'S AN EXEMPT DEBT SERVICE.
SO YOU SEE OUR LEVY IN 2025 IS ABOUT $10 MILLION THERE, ALMOST 11.
AND THEN WEHAVE OUR NON- EXEMPT DEBT SERVICE, WHICH IS AROUND $58 MILLION IN 2025. SO THOSE ARE THE VARIOUS BUCKETS THAT WE'RE DEALING WITH.
WHAT I WOULD CALL YOUR ATTENTION TO -- BECAUSE THIS IS GOING TO BE REALLY IMPORTANT FOR TONIGHT, THE EDUCATION FUND IS ALL ABOUT THE NUMBER OF STUDENTS AND THE OTHER FUNDS THAT YOU SEE HERE ARE RELATED TO PROPERTY TAX RATES, PROPERTY TAX DOLLARS.
SO WHERE THE EDUCATION FUND NOT IMPACTED BY SENATE BILL 1, OPERATIONS REFERENDUM, DEBT SERVICE ABSOLUTELY IMPACTED BY SENATE BILL 1.
>> CAN I ASK A QUICK QUESTION?
>> YES. >> PLEASE IF YOU'RE GOING TO GET TO THIS IN FUTURE SLIDES, JUST TELL ME.
BACK ON THE REFERENDUM YOU SAID PRIMARILY TEACHER SALARIES AND BENEFITS.
I THINK WE ALSO HAD SECURITY, SRO THAT KIND OF THING, THAT'S ALSO IN THAT REFERENDUM, CORRECT?
>> AT ROUGHLY 5. 7% AT THE TIME OF BUDGETING, THAT'S THE PERCENTAGE BREAKDOWN THERE. YEAH.
SO, WILL YOU GET INTO FUTURE SLIDES WHAT WE HAVE USED?
>> I'LL TALK ABOUT YOUR BUDGET, I WON'T BREAK DOWN THE DOLLARS THAT WENT TO SECURITY. THIS IS THE LAST PIECE THAT MENTIONS THAT. IF WE GET THERE, IF YOU HAVE A QUESTION I DIDN'T ANSWER, I'M HAPPY TO ADDRESS IT.
>> THIS IS A SLIDE THAT WE REPEATED FROM OUR BUDGET APPROVAL TIME. BIGGEST ISSUE HERE, IF WE'RE GOING TO BE PAID BY THE NUMBER OF STUDENTS, THERE'S A POINT RIGHT HERE IN THE 1920 SCHOOL YEAR AND 2021 SCHOOL YEAR WHERE WE START SEEING A DECREASE IN THE NUMBER OF STUDENTS. I WOULD CALL YOUR ATTENTION TO THE '24/'25 SCHOOL YEAR WHERE WE GRADUATED. AND THIS WAS -- TO BE CLEAR, THIS WAS AN OCTOBER COUNT THAT CERTAINLY FLUCTUATES THROUGHOUT THE YEAR, BUT WHERE WE GRADUATED ROUGHLY 1800 STUDENTS AND BROUGHT IN ROUGHLY 1,100 KINDERGARTENERS. THAT TREND WE ANTICIPATE CONTINUING. AND SO, WHAT THAT LEADS TO IS OBVIOUSLY EVEN AS TUITION SUPPORT DOLLARS INCREASE, THE NUMBER OF STUDENTS DECREASING. AND SO THOSE DON'T I GUESS PLAY NICE TOGETHER. GREAT WE SEE AN INCREASE, BUT WHEN WE CONTINUE TO LOSE STUDENTS, THERE ARE SOME SIGNIFICANT CHALLENGES WITH THAT.
SO, WE'LL CONTINUE TO USE THAT AS A PIECE AS WE TALK HERE.
SWITCHING OVER TO THE PROPERTY TAX SIDE A REALLY BIG KEY, AND WE TALKED ABOUT THIS IN BUDGET TIME 2, OUR NET ASSESS VALUE.
ALL THE TAXABLE PROPERTIES WITHIN THE DISTRICT, NOT JUST HOMES, BUSINESSES, FARMLAND, ALL THE THINGS, AFTER ALL THE DEDUCTIONS FALL OFF, WE GET WHAT'S CALLED A NET ASSESSEDASSESSED VALUE.
WE DON'T KNOW WHAT THAT'S GOING TWO FOR 2026 YET.
THAT'S A REALLY KEY NUMBER FOR US.
BUT AS YOU CAN SEE AND ALL PROPERTY OWNERS KNOW THIS AS WE GET OUR TAX BILLS AND SEE WHAT HOUSING RATES GO FOR, ASSESSED VALUE HAS CONTINUED TO RISE PRETTY RAPIDLY OVER THE LAST FIVE YEARS. WHERE WE SEE A MEAN IN OUR CERTIFIED ANNUAL INCREASE OF ABOUT 8.6%.
THAT'S BOTH A BLESSING AND THEN THERE'S A CHALLENGE WITH THAT, TOO.
THE CHALLENGE WITH THAT IS YOU HEARD ME SAY EARLIER, WE ARE LIMITED IN OUR OPERATIONS FUND TO A MAXIMUM LEVY.
RIGHT NOW THAT MAXIMUM CEILING IS 4%.
SO YET OUR PROPERTIES AND THE VALUE OF OUR COMMUNITY PROPERTY IS GROWING AT 8% ON AVERAGE.
WE'RE ONLY ABLE TO RAISE OPERATIONS DOLLARS AT A 4% INCREASE. SO, ESSENTIALLY NOT KEEPING PACE WITH THE GROWTH OF THE COMMUNITY WHEN IT COMES TO THE OPERATIONAL COST OF OUR DISTRICT.
SAFE TO SAY ALL THOSE OPERATIONAL COSTS HAVE ESCALATED PRETTY RAPIDLY, WHETHER IT'S ELECTRICITY COSTS TO JUST RUNNING THE BUSES, TO FUEL, ALL OF THE THINGS. SO THIS BECOMES REALLY IMPORTANT. SPECIALLY WITH SENATE BILL 1.
SO I BRING US BACK TO THE FORMULAS THAT WE TALKED ABOUT AT BUDGET TIME. IT'S A PRETTY SIMPLE FORMULA, RATE TIMES NET ASSESSED VALUE EQUALS LEVY.
WHAT WE'VE BEEN GOOD IS WE TRIED TO KEEP THAT RATE STEADY IF NOT DROPPING. THE LAST TWO YEARS WE MAINTAINED THE RATE. THAT'S GREAT BECAUSE IF AV IS GOING UP AND YOU KEEP A FLAT RATE, YOU'RE GOING TO HAVE A LARGER LEVY EVERY YEAR. WE'RE ABLE TO KEEP UP, WHETHER THOSE BE DEBT SERVICE AND OPERATIONS AT 4%, THAT OBVIOUSLY IS AN INCREASE IN THE AMOUNT OF MONEY THAT WE BRING IN. SAID ANOTHER WAY, IF YOU LIMIT YOUR LEVY TO A 4% GROWTH
[00:10:03]
IN OPERATIONS, AND YOUR AV CONTINUES TO GROW, YOUR RATE WILL ACTUALLY DROP.AND THAT'S WHAT'S HAPPENED IN OUR OPERATIONS FUND.
SO WE'RE LIMITED AT 4%. OUR AV GREW FASTER THAN THAT.
AND SO, OUR RATE IN THE OPERATIONS FUND -- AND IDENTIFY GOT A SLIDE ON THAT IN JUST A SECOND, ACTUALLY DROPPED. WE MADE UP THE DIFFERENCE, IF YOU WILL, IN OUR DEBT SERVICE RATE TO KEEP AN OVERALL FLAT TAX RATE. QUESTIONS ABOUT WHERE THE HISTORY OF SORT OF SCHOOL FINANCE IS BEFORE I GO INTO WHERE WE WERE?
>> WERE THERE ANY CHANGES TO THE FUNDING FORMULA ON THE PER STUDENT? THERE ARE SOME DIFFERENT THINGS LIKE COMPLEXITY SCORES AND THOSE THINGS.
>> YES. THE SHORT ANSWER IS YES.
THE CHALLENGING ANSWER IS NOT ONLY WAS THERE AN INCREASE, BUT THEY EMBEDDED CURRICULAR MATERIALS INTO THAT.
SO IT LOOKED LIKE A GREAT INCREASE, IT WAS STILL A GOOD ONE, EMBEDS THE $158 ROUGHLY A STUDENT THAT WE GOT IN TUITION -- IN CURRICULAR MATERIALS. THAT NOW LIVES IN TUITION SUPPORT. SO IT'S GOING TO LOOK AND FEEL LIKE A BIGGER NUMBER THAN IT REALLY IS.
>> BUT WHEN WE TALK ABOUT THOSE OTHER THINGS, THE OTHER BUCKETS AND ALL THE INFORMATION, I DO HAVE A COUPLE QUESTIONS WITH THAT REFERENDUM AND YOU SAID EARLIER THAT YOU'RE NOT TALKING ABOUT DOLLAR AMOUNT.
BUT I THINK IT'S VERY CRUCIAL THAT WE DO POINT OUT SOME OF THOSE THINGS SO WHETHER WE HAVE THOSE ANSWERS TODAY OR NOT, WHEN WE WENT TO THE PUBLIC AND SAID, HEY, WE NEED YOU TO APPROVE A REFERENDUM, WE ASKED FOR 6. 7 MILLION TO GO TOWARDS ACADEMIC AND EDUCATION. AND ABOUT 67 CERTIFIED TEACHERS.
5. 9 MILLION TO MAINTAIN CLASS SIZES AND ANOTHER 59 CERTIFIED TEACHERS.
9 MILLION TO ATTRACTING TEACHERS AND MAINTENANCE OF SALARIES AND 2. 4 MILLION FOR SAFETY INITIATIVES.
SO, IF I'M SITTING HERE TODAY LISTENING TO FINANCES, I WANT -- WOULD LIKE TO KNOW AND GET THAT UPDATE.
>> ARE FUNDS, IN FACT, ARE WE ON THAT TRACK TO GIVE THOSE FUNDS TO THOSE AREAS.
>> YEAH. SO OBVIOUSLY IN ORDER TO PROMISE CLASS SIZE AMOUNTS, WE NEED TO SUPPORT THE PROPER NUMBER OF TEACHERS IT TAKES TO SUPPORT THOSE CLASSROOMS. RIGHT?
>> SO I -- I WANT TO BE CAREFUL WHEN I SAID I'M NOT GOING TO SHARE THE NUMBERS.
WHAT I CAN SHARE IS WE HAVE A LEVY OF $26 MILLION AND 94% OF THAT IS GOING ALL TO TEACHERS TO DO ALL THE THINGS THAT YOU JUST SAID.
BY HAVING MORE TEACHERS, WE REDUCE THE CLASS SIZE NUMBER TO WHAT WE WANT. WE SUPPORT ALL THE THINGS THAT NEED TO HAPPEN IN THE CLASSROOM.
THERE'S A SMALL PERCENTAGE OF THAT THAT GOES TO SCHOOL SAFETY.
SAID A DIFFERENT WAY AND I'M TOTALLY PUTTING CECELY ON THE SPOT HERE. IN TERMS OF THE SCHOOLS WE FUND.
WE DON'T NEED TO NAME THE SCHOOLS, BUT ENTIRE SCHOOL BUILDINGS FUNDED BY THE REFERENDUM, THERE ARE FOUR, CORRECT? ONE HIGH SCHOOL, ONE INTERMEDIATE, TWO ELEMENTARIES.
NOW, THAT'S JUST A SHOW GAME. BUT THE POINT IS WE FUND AN ENTIRE HIGH SCHOOL, AN ENTIRE INTERMEDIATE AND TWO ENTIRE ELEMENTARY SCHOOLS WITH REFERENDUM DOLLARS TO GIVE YOU THE IMPACT.
YOU COULD SHARE THAT. I COULD DO A LITTLE BIT IN EACH BUILDING. BUT LOGISTICALLY I THINK THAT SAYS HOW IMPORTANT THE REFERENDUM FUND IS.
TO ANSWER YOUR QUESTION, SO MUCH OF THESE DOLLARS 94% AND MORE ALL ARE GOING TO TEACHERS.
>> JUST ROUGHLY, THAT'S $24,510,767.
I MEAN, IT GOES TO ALL THE THINGS THAT YOU JUST MENTIONED. AND THEN THE REST GOES INTO SECURITY, WHICH WOULD JUST BE A LITTLE OVER 2. 5 MILLION.
>> EXCELLENT. AND THAT'S KIND OF JUST WHAT I'M CONFIRMING TODAY AS WE'RE SITTING HERE GETTING THAT FINANCIAL UPDATE.
>> WAS THAT THE SECURITY NUMBER, WHAT NUMBER DID YOU SAY,
MILLION. >> SO I THINK THAT'S RIGHT.
THAT'S PRETTY CLOSE TO RIGHT ON, I
>> AND THAT'S THE LEVY WE'LL GO INTO THE BUDGET AMOUNT WHICH IS SLIGHTLY DIFFERENT THAN THE LEVY.
THE MATH IS EXACTLY WHAT WE DESCRIBED.
>> GIVES GRAVITY TO HOW VALUABLE AND CRITICAL THAT REFERENDUM FUND IS. WHEN WE GO TO WHERE WE STAND TODAY IN THE EDUCATION FUND, IF WE WOULD PULL OUT 24ISH MILLION DOLLARS TO TRY TO PAY OUT OF THE EDUCATION FUND, IT'S NOT POSSIBLE.
WHICH IS REALLY THE POINT I'M TRYING TO MAKE.
>> SO WHERE WE WERE, JUST A LITTLE BIT OF BACKGROUND ON SOME OF THE PREVIOUS BUDGETS, JUST TO KIND OF LEVY SET US TO WHERE WE ARE AND WHERE WE'RE GOING.
HERE ARE THE CERTIFIED BUDGET AMOUNTS OVER THE LAST FOUR YEARS.
OBVIOUSLY YOU SEE A PRETTY STEADY INCREASE, THE COST OF DOING BUSINESS IS A BIG PART OF THAT, RAISES ARE A BIG PART OF THAT.
AND TO BE CAREFUL HERE, THIS IS BACK TO THAT IDEA OF PERMISSION TO SPEND. SO THIS IS WHAT THE
[00:15:02]
APPROVED BUDGET BY THE BOARD SAID WE HAVE PERMISSION TO SPEND IN A GIVEN YEAR.NOW, YOU SEE THE BIG LEAP FROM '24 TO '25, I WOULD COME BACK TO A SLIDE I SHARED WITH YOU BEFORE DURING THE BUDGETING PROCESS OF, HEY, WHY THE BIG JUMP THERE? AND TO JUST HIT A COUPLE OF THE HIGHLIGHTS, REMEMBER IN '24 WE DID NOT HAVE ENOUGH PERMISSION FOR THE COST THAT WE TRULY NEEDED TO SPEND, SO WE CAME TO YOU AT THE END OF THE '24 AND ASKED FOR ADDITIONAL APPROPRIATIONS. BETWEEN THE EDUCATION REFERENDUM FUND THAT WAS 6. 5 MILLION.
WE HAD 11 MILLION IN SALARY INCREASES IN THE '23/'24 YEAR, HALF MILLION IN TURF, THAT'S TEACHER RETIREMENT FUND, INDEX NUMBER THAT WENT UP BY HALF PERCENT BUT FOR THE DISTRICT IT'S A HALF MILLION DOLLARS COST. HERE IS THIS IDEA OF CURRICULAR MATERIALS. THEY'VE BEEN ON A TRAIN IN THE LAST COUPLE YEARS. PARENTS USED TO PAY FOR CURRICULAR MATERIALS. THEN THEY MOVED INTO THE EDUCATION FUND AND NOW THEY'RE GOING TO BE A PART OF TUITION SUPPORT.
WHEN THEY MOVED TO THE EDUCATION FUND, IT WAS JUST A PAYMENT, $3.2 MILLION WE GOT IN DECEMBER THAT WE DEPOSITED INTO THE EDUCATION FUND FOR CURRICULAR MATERIALS.
SO THAT INCREASES THE EDUCATION FUND PERMISSION TO SPEND. IN '24/'25 RAISES EQUATED TO 4. 25 MILLION. MAJORITY OF THAT TO TEACHERS.
OBVIOUSLY A SIGNIFICANT CHUNK TO SUPPORT STAFF, 280,000 TO ADMIN. THEN JUST AN OVERALL INCREASE IN OUR CONTRIBUTION TO HEALTH AND DENTAL COSTS.
SO THAT'S THE BIG DIFFERENCE BETWEEN '24 AND '25.
AGAIN, WE TALKED ABOUT THIS AT BUDGET TIME.
>> THERE WAS SOME DISCUSSION LAST TIME TO KIND OF DIG OURSELVES OUT OF THE HOLE WE WERE GOING TO HAVE TO USE SOME CASH TO DO THAT.
DID WE END UP HAVING TO DO THAT OR DID WE FIND SOME SAVINGS IN
OTHER PLACES? >> WE USED A LITTLE CASH.
WE FOUND SOME SAVINGS TO THE INCREASE THE REFERENDUM.
THAT WAS THE KEY. ADDING THAT PENNY BACK ON WITH AN INCREASED ASSESS VALUE WAS REALLY AN IMPORTANT PIECE.
THE OTHER PIECE THAT WAS MAYBE NOT ANTICIPATED BY ME IS SOME OUR SUB GRANTS THAT GO ALONG WITH TUITION SUPPORT, THESE WOULD BE SPECIAL ED, CAREER AND TECH ED, SP, ENGLISH LANGUAGE LEARNERS AND ACADEMIC PERFORMANCE WHICH I HAVE A SLIDE ON. TWO OF THOSE GRANTS CAME IN HIGHER THAN I THOUGHT THEY WOULD BE.
SO THOSE TWO TOGETHER HELPED US A LITTLE BIT.
>> BUT WE ARE AT A POINT PREVIEWING A FUTURE SLIDE WHERE WE ARE SPENDING CASH NOW.
>> AND WE'LL TALK A LITTLE BIT ABOUT THAT.
>> WHAT WAS THE MAIN DRIVER IN THE HALF MILLION INCREASE IN HEALTH AND DENTAL SERVICES?
>> JUST THE OVERALL COST OF BEING -- WE'RE SELF FUNDED, SO WE TAKE CARE OF ALL OF OUR OWN CLAIMS AND WE USE A CLAIMS ADMINISTRATOR ANTHEM THAT REALLY NEGOTIATES OUR PRICE.
BUT IF I PERSONALLY GO TO THE DOCTOR AND THERE'S A COST, WE COLLECTIVELY ALL PAY FOR THAT.
SO, THIS WAS AN INCREASE TO OUR PREMIUM EQUIVALENCE SO WE COULD PROPERLY FUND OUR BENEFIT TRUST.
SO, CLAIMS, THE BUZZ WORD IN THAT SPACE IS CLAIMS WERE HOT. AND SO, IN ORDER TO PAY FOR THOSE HOT CLAIMS, WE HAD TO RAISE OUR CONTRIBUTION AMOUNT, WHETHER THAT BE A SHARED CONTRIBUTION FROM THE DISTRICT OR THE EMPLOYEE COMBINATION OF THE TWO.
>> DID THAT INCLUDE AN INCREASE IN BROKER FEES OR NO?
>> I DON'T BELIEVE THERE WAS AN INCREASE -- LET ME BE CLEAR.
WHEN IT COMES TO THE CLAIMS ADMINISTRATOR, I DON'T BELIEVE THAT THERE WAS AN INCREASE FROM ANTHEM.
WE DID BRING ON A NEW HEALTH CONSULTANT THAT DID COME WITH SOME ADDITIONAL COSTS. I WOULD SAY, THOUGH, IN DOING SO, WE'VE BEEN ABLE TO BRING IN SOME PRETTY INNOVATIVE PROGRAMMING TO HELP SUPPORT OUR STAFF.
SO WE KIND OF -- IT'S A DEPOSIT INTO ADDITIONAL RESOURCES FOR OUR STAFF.
SO, THIS IS AN IMPORTANT SLIDE BECAUSE IT ILLUSTRATES SOMETHING I WAS TRYING TO MAKE AS A POINT EARLIER.
SO HERE ARE OUR BUDGET SUM IES OVER THE LAST FIVE YEARS.
I MENTIONED THAT OUR OPERATION FUND GROWS AT ABOUT 4%. THERE'S SOME ADDITIONAL -- IT'S NOT JUST A FLAT 4% IN THE ACTUAL LEVY.
THERE'S SOME ADDITIONAL PIECES THERE.
BUT WE'RE HELD TO ROUGHLY 4% GROWTH.
IF YOU SEE THAT GROWING EACH YEAR, WITH THE ASSESSED VALUE GROWING AT A MUCH HIGHER RATE, YOU SAW IT AT ABOUT 8. 5%, EACH OF THESE FUNDS CONTINUES TO GROW. BUT WHAT ALLOWED US TO DO THE THINGS THAT WE DID AS A SCHOOL DISTRICT, AND MOST IMPORTANTLY KEEP A LEVEL TAX RATE, IS YOU'LL NOTICE THAT DEBT SERVICE LEVY INCREASES PRETTY RAPIDLY. THAT'S FOR A COUPLE REASONS.
ONE, AGAIN, ASSESSED VALUE IS GROWING MUCH FASTER THAN OUR OPERATIONS LEVY IS ALLOWED TO.
THE OTHER PIECE IS WE GOT A COUPLE THINGS STARTING TO FALL OFF. OUR DEBT THAT IS APPROVED BY A REFERENDUM IS GETTING LESS AND LESS.
OUR PENSION DEBT, ALTHOUGH SMALL, IS COMPLETELY GONE AWAY.
AND SO YOU PUT ALL THOSE TOGETHER, IT ALLOWS FOR OUR DEBT SERVICE TO GROW AT A LITTLE BIT OF A MORE RAPID RATE.
NOW, WHAT I WILL TELL YOU IS GO BONDS ARE A BIG PART OF OUR
[00:20:04]
DEBT SERVICE.AND THOSE ARE OUR OPERATIONAL DOLLARS.
A LOT OF WHAT HAPPENS IN GO SUPPORTS THE OPERATION OF OUR SCHOOL DISTRICT. YES, WE ABSOLUTELY TAKE ON LITTLE BUILDING PROJECTS WITH OUR GO DOLLARS.
WE BUY BUSES NOW OUT OF GO DOLLARS, BUT A BIG PORTION OF THAT IS THE MAINTENANCE AND OPERATION OF OUR SCHOOL DISTRICT THAT OTHERWISE WOULD STRAP OUR OPERATIONS FUND. SO, THIS IS A WAY THAT WE HELPED TO SUPPORT THAT. ANY QUESTIONS ABOUT WHERE WE WERE?
>> I HAVE A QUICK QUESTION GOING BACK TO THE SLIDE.
AGAIN, I DON'T WANT TO GET US OFF TRACK HERE.
WE DID THE BREAKDOWN AND OF THE 11 MILLION PER SALARY INCREASES IS THERE A WAY THAT -- UNDERNEATH THAT THE OTHER BULLET POINTS.
THERE WE GO. 11 MILLION IN SALARY INCREASES.
AND THEN BELOW ALL THE WAY DOWN WE HAVE THE 4. 25 MILLION TEACHER SUPPORTS. WHAT'S THE BREAKDOWN IN THAT 11 MILLION, IF YOU KNEW?
>> GREAT QUESTION MOCH I WOULD HAVE TO GET -- COME BACK TO THAT ONE.
I DON'T HAVE THAT IN FRONT OF ME.
LIKE ANY SCHOOL DISTRICT, A MAJORITY OF THAT IS CLASSROOM
IT. >> AS THEY ARE MAJORITY OF THE EMPLOYEES IN THE DISTRICT.
YOU. >> THAT'S TRUE FOR ANY DISTRICT. SO, WHERE WE ARE, HERE IS OUR 2025 BUDGET ORDER. AGAIN, YOU SEE -- I DO WANT TO DIGRESS JUST A SECOND. I FAILED TO MAKE THIS POINT.
ONE OF THE KEY THINGS I WANT TO MENTION IS THIS JUMP RIGHT HERE. WHERE YOU COMMENTED A LITTLE WHILE AGO OF USING CASH. HAD WE NOT -- HAD WE NOT RAISED THAT EXTRA PENNY THAT WE HAD AVAILABLE FOR US, WE WOULD NOT HAVE BEEN ABLE TO SEE THAT INCREASE IN THE REFERENDUM DOLLARS FROM 22 MILLION TO 26 MILLION.
THAT WAS VERY SIGNIFICANT IN OUR ABILITY TO SORT OF BALANCE THE BOOKS. AND SO WHEN I LOOK AT THE ACTUAL BUDGET ORDER, I THINK IT'S IMPORTANT TO NOTE THERE'S THAT MAXIMUM TAX RATE THAT THE VOTERS ALLOWED US TO GO TO.
SO, COUPLE THINGS OF IMPORTANCE HERE THAT ARE DIFFERENT. WHAT I SHOWED YOU EARLIER WERE LEVIES. THESE ARE ACTUAL BUDGETS NOW. THIS IS PERMISSION TO SPEND.
THIS IS NOT THE MONEY THAT WAS RAISED.
THIS IS PERMISSION TO SPEND OUT OF THAT VARIOUS FUND.
SO, YOU'VE GOT YOUR EDUCATION FUND ALL THE WAY DOWN TO RAINY DAY FOR US. SO THAT IS NOT NEW INFORMATION TO YOU. BUT AGAIN, IT HELPS TO LEVEL SET WHERE WE'RE HEADED NEXT. I THINK THIS IS A REALLY IMPORTANT SLIDE. AND THIS IS NOT ONE YOU HAVE SEEN BEFORE. ON THE LEFT IS THE ACTUAL TUITION SUPPORT. SO THIS IS ALL EDUCATION FUND DOLLARS THE DISTRICT RECEIVED IN THE '23/'24 SCHOOL YEAR. SO JULY 1 OF '23 TO JUNE 30 OF '24. AGAIN, KNOWING THAT A MAJORITY OF EDUCATION FUND DOLLARS GO TO TEACHERS, TEACHER AIDES, ANYTHING RELATED TO THE CLASSROOM, THESE NUMBERS ARE REALLY IMPORTANT.
FAST FORWARD TO THE '24/'25 SCHOOL YEAR, WE TALK ABOUT THIS IN OUR FINANCE COMMITTEE, THIS IS THAT FORM 54 FROM OUR FINANCE COMMITTEE MEMBERS. YOU SEE THE INCREASE FROM '23/'24 TO '24/'25 WAS $2. 7 MILLION, ALMOST 2. 8, WHICH IS A NICE INCREASE. BUT TO LEVEL SET THAT A LITTLE BIT, THE ESTIMATED PROFESSIONAL AGREEMENT THIS YEAR WAS $2. 8 MILLION.
SO LEGISLATIVELY, THE THRESHOLD IS THAT SCHOOL DISTRICTS ARE SUPPOSED TO SPEND 62% DURING THE '24/'25 SCHOOL YEAR OF NEW MONEY OR BETTER SAID TUITION SUPPORT DOLLARS ON TEACHERS, SALARIES, WAGES AND BENEFITS. THE NEWEST LEGISLATIVE SESSION SAID THAT WE NEED TO SPEND 65% OF TUITION SUPPORT DOLLARS ON TEACHERS, SALARIES, WAGES AND BENEFITS.
HSE IN THE '23/'24 SCHOOL YEAR HAD A PERCENTAGE OF 83% THERE. SO, I THINK AN IMPORTANT DISTINCTION FOR US IS HOW IMPORTANT WE ARE INVESTING IN INTO OUR TEACHERS. SOMETIMES WE HEAR DIFFERENT STORIES WHERE THAT IS NOT THE CASE. FINANCIALLY IT IS 100% THE CASE WHERE IN '23/'24, 83. 8% OF THAT NUMBER OR 83. 8% OF TUITION SUPPORT WAS SPENT ON TEACHERS, SALARIES, WAGES AND BENEFITS. SO TYPICALLY YOU WOULD NOT EXPECT TO TAKE IN YOUR TUITION SUPPORT AT 2. 7 AND SPEND 2.8. THE REFERENDUM INCREASE IS
[00:25:01]
THE KEY HERE AND WHAT MADE THAT POSSIBLE.>> DO YOU MIND REPEATING THAT ONE MORE TIME? WHAT PERCENTAGE.
>> I SAID A LOT OF THINGS, RIGHT?
>> RIGHT. I JUST WANT TO MAKE SURE FOR ANYBODY LISTENING AT HOME THAT THEY UNDERSTAND THE PERCENTAGE THAT WE ARE SUPPOSED TO SPEND VERSUS WHERE WE'RE AT.
>> YEAH. SO, IN THE '23/'24 AND '24/'25 SCHOOL YEAR THE LEGISLATIVE REQUIREMENT IS THAT YOU SPEND 62% OF YOUR TOTAL TUITION SUPPORT ON TEACHERS, SALARIES, WAGES AND BENEFITS.
IN THE '23/'24 SCHOOL YEAR WE RECEIVED THE REPORT IN OCTOBER OF '24, OUR NUMBER WAS 83.8%.
MOVING FORWARD, WE DON'T KNOW THAT EXPENSE.
INTERNALLY WE CAN CALCULATE THAT.
WE'LL GET A REPORT FROM THE STATE THAT CONFIRMS IT IN OCTOBER. SAFE TO SAY WITH THE INVESTMENT THAT WE MADE LAST YEAR, IT COULD GO DOWN, BUT IT'S NOT GOING TO BE ANYWHERE CLOSE TO 62% THAT WE'RE REQUIRED TO BE.
MOVING FORWARD WITH NEWEST SET OF LEGISLATION, THE '25/'26 SCHOOL YEAR SAID THAT YOUR CONTRIBUTION NEEDS TO BE 65% OF THE TOTAL AMOUNT THAT YOU RECEIVE.
SO THERE ARE SOME PRACTICES WHEN IT COMES TO THE COLLECTIVE BARGAINING PROCESS THAT SCHOOL DISTRICTS SAY, ALL RIGHT, HERE IS YOURNEW MONEY.
65% OF THAT IS AVAILABLE FOR BARGAINING.
SOMETIMES THAT IS AN APPROPRIATE APPROACH THAT IS USED IN THE COLLECTIVE BARGAINING PROCESS. NOT TO GO DOWN THAT RABBIT HOLE TODAY. MY POINT IS, WE HAD -- WE DID SPEND ESTIMATED MORE THAN WE TOOK IN IN OUR YEAR. AND WE KNEW THAT GOING IN.
AGAIN, THE REFERENDUM WAS THE KEY HERE.
AND THE VALUE OF SUPPORTING OUR TEACHERS.
THERE'S NOT A PERSON IN THIS ROOM THAT DOESN'T WANT TO DO THAT.
>> SO AGAIN, I'VE GOT IT AS IN '24 WE WERE REQUIRED TO SPEND 62% ON TEACHERS RELATED THINGS. WE SPEND 84.
>> AND IN '25, WE'RE NOW REQUIRED TO SPEND 65%, WE SPENT OVER 100%? NO.
>> NO. LET ME SAY THAT DIFFERENTLY.
SO IN '24/'25, WE'RE STILL REQUIRED TO SPEND 62%.
>> OF TOTAL DOLLARS. WHEN I AM SHOWING THESE TWO NUMBERS, I'M SHOWING THE INCREASE AMOUNT.
SO WE DID SPEND MORE THAN 100% OR PROJECTED TO SPEND MORE THAN 100% OF THE INCREASE.
THAT IS NOT SAYING WE SPENT 100% OF THIS
CORRECT. >> SO THE CALCULATION IS NOT --
>> THE INCREASE WAS 2. 7 MILLION AND WE SPEND OVER 2. 8
MILLION. >> AGAIN, THE REASON WE'RE ABLE TO DO THAT IS THE REFERENDUM
FUND. >> IS THAT HISTORIC? I GUESS, ASK CECELY WITH YOUR EXPERIENCE AT OTHER DISTRICTS. IS THAT NORMAL? ARE OTHER DISTRICTS DOING THIS AT SUCH A LEVEL ABOVE WHAT'S REQUIRED? IS THIS --
>> COMMON FOR US, HIGH- PERFORMING DISTRICTS OR HOW DOES THAT COMPARE AROUND AND HISTORICALLY AT
HSE. >>> PART OF THE REASON WE'RE ABLE TO DO 83% IS THE REFERENDUM. THERE'S NO DOUBT THAT'S A FACTOR. I WOULD SAY BEFORE I TURN IT OVER TO MY COLLEAGUES THAT 83% IS A VERY HIGH NUMBER.
IT SHOWS A SIGNIFICANT COMMITMENT AND INVESTMENT IN OUR TEACHING STAFF.
>> WE WERE NORMALLY AROUND 64% IN OUR PERRY TOWNSHIP BUDGET OF WHAT WE WERE SPENDING ON THE TEACHERS AND THE NEW MONEY THAT WOULD COME IN.
SO IT IS EXTRAORDINARY TO BE IN THE 80TH PERCENT OF NEW DOLLARS GOING STRAIGHT THERE.
>> SO TO SUMMARIZE IN SHORT, IF I WAS A TEACHING LOOKING TO BE AT ANY DISTRICT.
>> COME HERE. WE'RE SPENDING THE
YEAH. >> IT'S ALL EXPENSES FOR A TEACHER, RIGHT? AND SO, SALARY IS ONE SMALL PIECE OF THAT. THINGS LIKE A 403B 5% MATCH IS SIGNIFICANT. HEALTH INSURANCE CONTRIBUTIONS, BIG PART OF THAT. SO, IT'S THE SALARY PIECE IS ONE VERY SMALL PIECE OF THAT -- NOT SMALL BUT EQUAL PIECE OF THAT PIE WHEN YOU START TO LOOK AT SOME OF THOSE OTHER FACTORS THAT COME IN.
>> MR. BROWN, CAN YOU CLARIFY THEN, JUST TO MAKE SURE I HAVE MY NUMBERS AND MY YEARS CORRECTLY, WAS IT FOR THE REFERENDUM, WAS THE 2024 YEAR WAS THAT THE . 1895 YEAR AND THIS YEAR, 2025, . 1195 YEAR?
>> TAXES PAYABLE IN 2024 . 1895 AND TAXES PAYABLE IN '25 .
>> SO WE'RE PAYING RIGHT NOW. SO COMING UP THIS FALL, WHEN WE'RE TALKING ABOUT BUDGET AND 2026, WE HAVEN'T DISCUSSED THAT RATE YET, CORRECT?
>> NO, BUTLY COME TO YOU BEGGING AND PLEADING FOR . 1195
BUT I'M SAYING CURRENTLY WE DON'T HAVE THAT.
WE DO KNOW WITH ARE . 1195 RIGHT NOW AND IT'S FOR DISCUSSION IN THE FALL FOR WHAT WILL COME
NEXT. >> AND PER THE PROCESS OF GETTING THE REFERENDUM APPROVED THAT YOU APPROVED A
[00:30:03]
MAXIMUM RATE.SO YOU CANNOT ASK FOR A RATE ANY HIGHER THAN
>> BUT I WILL ADAMANTLY PLEASE ASK FOR THAT.
>> I KNOW YOU WILL. I JUST WANTED TO CONFIRM THAT WE ARE PRACTICING --
>> YOU'LL SEE WHY THAT IS REALLY
>> AND THE CALCULATION IS NOT BASED ON THE INCREASE, CORRECT, IT'S BASED ON WHAT IS THE CALCULATION BASED ON? NOT BASED ON THE INCREASE, WHICH IS THAT BIG NUMBER THE 2. 7
SO THE CALCULATION IS WE TAKE ALL OF THE SALARIES, WAGES, BENEFITS OF TEACHERS. THAT'S YOUR NUMERATOR. AND THIS IS THE DENOMINATOR.
THE TOTAL TUITION SUPPORT FOR THE YEAR AND THEN THEY GIVE US A PERCENTAGE BASE ON THAT. IT DOESN'T MATTER WHERE IT'S FROM. I THINK THAT'S AN IMPORTANT DISTINCTION. WE'RE NOT SAYING WE'RE SPENDING THAT ALL OUT OF THE EDUCATION FUND. WE CALCULATE AND COUNT ALL THE DOLLARS OUT OF THE REFERENDUM THAT GO TO TEACHERS, SALARIES, WAGES AND BENEFIT.
THERE'S A CODE IN THE FUNDING WORLD YOU PUT ON THE END OF ANY TEACHER SALARY AND ANYTHING THAT HAS THAT CODE GOES TO THE NUMERATOR THE CALCULATION, THE TOTAL AMOUNT GOES TO THE DENOMINATOR.
>> AND THE COST OF LIVING ISIS QUITE A HIGHER THAN THE COST IN MARION COUNTY. WE DO WANT OUR TEACHERS LIVING WHERE THEY TEACH, CORRECT?
>> THE NEXT ONE IS TOO SMALL TO SEE SO YOU HAVE IT IN YOUR PACKET THERE. THIS IS -- I APOLOGIZE.
I NEEDED THIS ALL ON ONE SLIDE. THAT'S WHY YOU HAVE A HANDOUT.
THIS IS OUR MONTHLY FINANCIAL STATEMENT THROUGH MAY 31 OF 2025.
AND I'M GOING TO CALL YOUR ATTENTION TO A COUPLE THINGS HERE.
THIS IS EACH OF OUR VARIOUS EXPENDITURE CATEGORIES THAT RUN FROM FULL DAY KINDERGARTEN ALL THE WAY DOWN TO CURRICULAR MATERIALS, LIBRARY, MEDIA SERVICES, ALL OF THE VARIOUS FUND CATEGORIES.
I WOULD CALL YOUR ATTENTION TO THE HIGHLIGHT AT THE BOTTOM. AND WHAT THIS IS SHOWING IS THAT CURRENTLY WE ARE RUNNING A LITTLE HOT IN OUR EXPENSES THROUGH FIVE MONTHS YOU WOULD EXPECT TO SPEND ABOUT 41.
THAT IS 5/12TH. THIS IS 5/12THS OF THE YEAR.
WE HOPE TO SPEND 41.6%. IF YOU LOOK AT THE BOTTOM RIGHT, YOU SEE WE'RE SPENDING ABOUT 42. 4% OR ABOUT 1. 2 MILLION OVER EXPECTED. NOT SAYING CASH BALANCE AT THIS POINT. BUT IF THIS TREND CONTINUES TO THE END OF THE YEAR, I WILL BE COMING BACK TO YOU IN NOVEMBER AND DECEMBER AND SAYING I NEED A LITTLE BIT MORE PERMISSION TO SPEND.
NOW, THERE'S EBBS AND FLOWS IN THIS.
WE GOT SUMMER MONTHS WHERE MAYBE WE SEE A LITTLE LESS, BUT FRANKLY, THERE'S PAYOFFS IN JUNE FOR ALL OF OUR RETIRING AND DEPARTING STAFF. AND SO, IT'S SAYING HERE THAT WE ARE SPENDING A LITTLE MORE THAN WE EXPECTED AT THE TUNE OF ABOUT $1. 2 MILLION TODAY IN THE EDUCATION
FUND. >> AND WHAT DO YOU FEEL THAT CAUSE IS? JUST INCREASED COSTS IN ALL OF THESE BUCKETS? OR IS THERE A SPECIFIC AREA, LET'S SAY, RANDOMLY SAYING -- I'M NOT TRYING TO PICK ON TRANSPORTATION, BUT LET'S JUST SAY IS IT, WOW, BECAUSE THERE'S BEEN A HUGE INCREASE IN TRANSPORTATION OR THERE'S BEEN A HUGE INCREASE IN UTILITY BILLS OR WHATEVER. IS THERE A CERTAIN REASON YOU FORESEE THIS NUMBER IS HIGHER THAN REGULAR?
>> IT REALLY IS THE COST OF MAINLY STAFF IN THIS CASE BECAUSE THE EXAMPLES YOU GAVE UNFORTUNATELY APPLY TO THE OPERATIONS FUND.
>> THESE ARE ALL EDUCATION FUND COSTS.
I WILL SAY OUR INSTRUCTIONAL MATERIALS -- I'M NOT NECESSARILY TALKING LIKE TEXTBOOKS. I'M TALKING THE SUPPLIES AND THINGS IN THE CLASSROOM, OBVIOUSLY THOSE ARE ESCALATING, TECHNOLOGY COSTS ARE ESCALATING.
I DON'T KNOW THAT I CAN PIN IT
OKAY. >> THE MOST EXPENSIVE THING IN ANY DISTRICT IS THE PEOPLE AND THE PERSONNEL.
I'M NOT SAYING THAT'S A BAD THING, BUT THAT'S THE REALITY OF WHAT'S HAPPENING HERE.
>> AND IS OUR EDUCATION TRAINING IN THIS CATEGORY -- IN THIS BUCKET TOO?
>> PROFESSIONAL DEVELOPMENT LIVES IN THIS SPACE.
>> A LOT OF THESE INSTRUCTIONAL SUPPLIES OUTSIDE OF CURRICULAR MATERIALS AND PROFESSIONAL DEVELOPMENT, THEY HAVE FINITE BUDGETS. WE VERY CAREFULLY PROTECT THOSE AND SEND THOSE TO THE SCHOOLS THAT THEY SPEND WITHIN.
>> SO AGAIN, THIS ONE RIGHT HERE, WE'RE ONLY IN THE EDUCATION FUND. SO THAT DOES NOT INCLUDE CENTRAL OFFICE, LEGAL, OPERATIONS, ANY OF THOSE THINGS?
>> THIS IS ONLY -- AND THERE'S A -- THE SECOND COLUMN TO THE RIGHT, FAVORABLE OR UNFAVORABLE VARIANCE.
YOU CAN KIND OF LOOK THROUGH HERE AND SEE WHERE WE'RE ABOVE AND BELOW.
IT'S MIDDLE AND JUNIOR HIGH, HIGH SCHOOL AND THEN DOWN TO SUMMER HIGH SCHOOL, CAREER AND TECH ED, CO-OP, SO YOU CAN KIND OF GET AN IDEA OF WHERE THESE DIFFERENT THINGS. BUT AGAIN, EVERYTHING ON THIS SHEET IS EDUCATION FUNDS. SO TO BE OVER THE 1.
[00:35:02]
2, IT'S EDUCATION FUND THINGS. IT'S NOT COMING FROM OTHERSOURCES. >> I WANT TO BE CAREFUL NOT TO GET CAUGHT UP IN THE INDIVIDUAL LINES HERE BECAUSE THE MOST IMPORTANT THING IS THE CUMULATIVE TOTAL AT THE BOTTOM, RIGHT? THERE'S GOING TO BE EBBS AND FLOWS WITH THE LINES THROUGHOUT THE YEAR.
AND WE MAY LOOK BACK ON THE BUDGET AND SAY, YEP, WE MISSED THAT LINE A LITTLE BIT.
WE NEED TO INCREASE THAT NEXT YEAR. BUT THERE'S OTHER LINES THAT ARE IN EXCESS AT THIS POINT. AND SO REALLY THE CUMULATIVE TOTAL IS THE GOAL HERE.
>> I THINK IT'S IMPORTANT THAT ABOUT A YEAR AGO WHEN I PRESENTED I SAID, HEY, WE'RE GOING TO HAVE A DEFICIT.
AND TO CIRCLE BACK TO JUST HOW IMPORTANT THAT REFERENDUM FUND IS.
THAT REDUCED IT SO THE 6 TO $7 MILLION WE THOUGHT, OH MY GOSH, IT'S GOING TO BE REALLY TOUGH.
BY YOU APPROVING ADDING THE PENNY BACK AND THE ASSESSED VALUATION GOING UP, REALLY MADE THAT LESS.
AND WITHOUT THAT REFERENDUM FUND BEING THERE, WE WOULD BE IN MUCH DIFFERENT FINANCIAL SHAPE THAN WHAT WE ARE RIGHT NOW.
AND SO, JUST BY LOOKING AT OUR ACCOUNTS AND ADDING THE PENNY AND JUST BEING BETTER STEWARDS OF THE DOLLARS THAT ARE THERE, WE'RE STILL SPENDING A LITTLE CASH AND WE KNEW WE WERE GOING TO SPEND SOME CASH, BUT IT'S A MUCH BETTER FISCAL POSITION THAN I THOUGHT WE WERE GOING TO BE
AND THAT'S WHY I KIND OF WANTED TO EMPHASIZE THIS IS JUST IN THE EDUCATION FUND. I'M SURE WE'LL GET TO THE OTHERS HERE IN A SECOND. SOMETHING WE GET FROM THE COMMUNITY A LOT AND TO BE HONEST, I FELT THIS WAY BEFORE I WAS BEHIND THE SCENES AND SAW THE PAPERWORK AND ALL THESE THINGS.
YOU GET QUESTIONS LIKE, WELL, WHAT IF WE DIDN'T PUT -- FIELD TURF ON THE SOCCER FIELDS, WOULD WE HAVE THIS? THOSE ARE TOTALLY DIFFERENT FUNDS. THEY'RE NOT RELATED. THIS IS JUST IN THE TEACHING
IT. >> SO WHEN WE GET OVER TO OPERATIONS NOW, THAT'S A QUESTION AND THE DEBT SERVICE AND THOSE KIND OF THINGS, BUT HERE THIS -- YOU CAN'T DO SOMETHING LIKE, YOU KNOW, NOT BUILD A FOOTBALL FIELD AND SAVE MONEY HERE.
>> CAN YOU GIVE A SIMPLIFIED EXPLANATION OF INNER FUND TRANSFERS?
>> YES. SO, ON THE BOTTOM OF THAT, WE COME TO THE BOARD EVERY YEAR DURING THE BUDGETING PROCESS AND REQUEST AN AMOUNT THAT WE TRANSFER FROM EDUCATION TO OPERATIONS.
AND THE HISTORY OF THIS IS THAT PRE-EDUCATION FUND, BACK TO THE GENERAL FUND, THERE WERE EXPENSES THAT PREVIOUSLY LIVED IN THE GENERAL FUND OR IN CAPITAL PROJECTS, THE VARIOUS BUCKETS THAT GOT MOVED TO THE OPERATIONS FUND.
AND SO, AS A RESULT, DISTRICTS ARE ALLOWED TO MOVE -- DON'T HAVE TO -- BUT ARE ALLOWED TO MOVE UP TO 15% OF YOUR EDUCATION FUND DOLLARS TO THE OPERATION FUND BECAUSE THOSE EXPENSES LIVE IN THAT SPACE WHEN THEY PREVIOUSLY DID NOT.
>> A DIFFERENT LOOK AT THE EDUCATION FUND.
THIS IS WHERE OUR CASHED BALANCE STANDS.
ONE THING TO HAVE A BUDGET AND KNOW HOW YOU'RE SPENDING TO THE BUDGET, CRITICALLY IMPORTANT.
ANOTHER TO LOOK AT WHAT OUR CASH BALANCE LOOKS LIKE IN THE EDUCATION FUND. SO THE BLUE LINE REPRESENTS THE CASH BALANCE. THE RED BAR REPRESENTS WHETHER IT WAS A DEFICIT OR A SURPLUS THAT MONTH.
IF YOU LOOK AT THE BOTTOM, YOU CAN SEE HOW THE RED BARS ALIGN TO THE DATA HERE.
SO, ON JANUARY 1ST, 2025, OUR EDUCATION FUND HAD A CASH BALANCE OF 25.7 MILLION. AND YOU CAN SEE HOW THIS HAS STEADILY DROPPED IN EACH OF THE MONTHS TO A NET OVERALL CHANGE, MINUS THE MONTH OF MAY WHERE THERE'S A LITTLE BIT OF SURPLUS TO A NET OVERALL CHANGE OF $1. 6 MILLION.
THIS IS SHOWING THAT OUR EXPENSES ARE EXCEEDING OUR REVENUE IN THE EDUCATION FUND AT THIS POINT. I'M STILL COMFORTABLE WITH THE CASH BALANCE AS WE SIT HERE TODAY. AT LEAST AT THE END OF MAY, JUNE 1. OUR CASH BALANCE WAS AT $24 MILLION. THAT'S ABOUT 15% OF THE OVERALL BUDGET. SAID A DIFFERENT WAY, JUST SHY OF TWO MONTHS EXPENSES. WE ALL JUST BASIC FINANCES YOU WANT TO HAVE AT LEAST A COUPLE, IF NOT EVEN THREE MONTHS OF EXPENSES IF THE WORST OF THE WORST HAPPENS.
I'M COMFORTABLE WHERE 15% IS. I WOULD NOT WANT TO DIP MUCH BELOW 15% MOVING FORWARD. I THINK THAT'S A GOOD PLACE TO BE. OBVIOUSLY IF WE HAD AN ADDITIONAL SURPLUS THERE, THAT WOULD BE A POSITIVE THING.
JUST TO LEVEL SET HERE TO LOOK AT WHAT EXPENSES ARE.
IN THE MONTH OF MAY, FOR INSTANCE, OUR EXPENSES WERE ABOUT 14. 5 MILLION IN THE EDUCATION FUND. APRIL, 13.6.
MARCH, 14.6. SO WE'RE LIVING IN THAT 134 TO $14 MILLION SPACE AND WE BRING IN ABOUT $13 MILLION A MONTH IN TUITION SUPPORT.
[00:40:01]
AGAIN, ONE OF THE THEMES YOU'VE HEARD FROM ME ALREADY, IF WE TOOK OFF THE REFERENDUM AT $26 MILLION, LOOK HOW CRITICALLY STRAPPED THIS FUND BECOMES.IT SIMPLY IS NOT POSSIBLE. THE REFERENDUM IS KEY IN THE WORK THAT WE'RE DOING IN THE EDUCATION
SPACE. >> MR. BROWN, IF I CAN POINT SOMETHING OUT AND MAKE SURE I'M LOOKING AT THE RIGHT INFORMATION, IN 2025, EARLIER, THE PROJECTION WAS IN OUR BUDGET STORY THAT WE WOULD POSSIBLY BE AT 1. 8 MILLION IN DEFICIT IN THIS EDUCATION FUND. SO TO SAY WE'RE ONLY AT 1. 2, THAT WOULD SAY THAT'S PRETTY GOOD.
>> I'M NOT SURE WHERE YOU'RE SEEING
1.2. >> AM I LOOKING AT THE WRONG SHEET?
BOTTOM. >> SO LET ME KIND OF CLARIFY A FEW THINGS. 1. 2 IS SAYING WE'RE -- DEFICIT WHAT WE EXPECTED TO SPEND.
SO THIS IS THE BUDGET, PERMISSION TO SPEND, ING OUT ALL THOSE DOLLARS SPREAD OUT OVER 12 MONTHS WE'RE RUNNING ABOUT $1. 2 MILLION HOT TO USE THAT EXPRESSION.
>> OVER HERE IS TRUE CASH. THIS IS CASH ON HAND.
WE DON'T GET PERMISSION TO SPEND ALL OF OUR CASH.
THAT'S WHY I MAY COME BACK TO YOU IN NOVEMBER AND DECEMBER AND SAY, YEP, WE SPENT A LITTLE MORE THAN I ANTICIPATED SO I NEED PERMISSION TO SPEND A LITTLE MORE, INCREASING THE BUDGET.
BUT YOU ONLY CAN DO THAT WHEN YOU GOT THE CASH TO BACK IT UP. IN MY OPINION, THIS IS THE MOST IMPORTANT SLIDE BECAUSE THIS IS SHOWING ACTUAL CASH BALANCES. YOUR BANK ACCOUNT NUMBER, IF YOU WILL.
>> SO WE ARE AT NEGATIVE, IF YOU WILL, 1. 6, WHICH IS STILL BETTER TO ME THAN 1. 8, THAT WE THOUGHT WE WOULD BE AT, I GUESS I'M SAYING. I GUESS I'M TRYING TO POINT OUT -- I WAS TRYING TO MAKE IT A
ABSOLUTELY. >> WE FORESAW IT COULD BE 1.8.
>> YEAH. THERE'S A SLIDE COMING UP WHERE SOME OF THE EFFORTS THAT WE PUT IN IN A LOT OF AREAS ARE CONTRIBUTING TO SOME OF THAT.
>> MOVING OVER TO THE REFERENDUM FUND, THIS IS MORE EASIER TO SEE, BOARD MEMBERS YOU DO HAVE THIS IN FRONT OF YOU. IT IS RUNNING MILDLY WARM WHERE WE'RE SHOWING THAT WE'RE SPENDING A LITTLE OVER 200,000, MORE THAN WE WOULD HAVE EXPECTED A IN THE POINT.
REMEMBER THE TARGET IS 41.6. THAT'S 5/12THS OF THE YEAR.
YOU WILL NOT SEE A CASH BALANCE SUMMARY ON THIS BECAUSE UNLIKE TUITION SUPPORT IN THE EDUCATION FUND THAT COMES IN MONTHLY, WE GET A PAYMENT EVERY MONTH, WE SPEND EVERY MONTH. ANY PROPERTY- TAX DRIVEN FUND ONLY COMES IN REALLY TWICE A YEAR. AN EARLY DRAW IN MAY.
WE GET THE FULL AMOUNT IN JUNE AND EARLY DRAW IN NOVEMBER AND THE FULL AMOUNT IN DECEMBER.
AND SO, I DON'T WANT TO REALLY FOCUS ON ANY PART OF THE REVENUE BECAUSE THAT WASN'T REFLECTED IN THIS. BECAUSE AT THE TIME WE HADN'T GOTTEN OUR JUNE DISPERSEMENT YET. THE KEY THING IS HOW ARE WE RUNNING TO BUDGET? WE'RE RUNNING A LITTLE WARMER THAN WE LIKE BUT NOT BY A SIGNIFICANT AMOUNT, $217,000. HEADING OVER TO OPERATIONSOPERAT IONS NOW. YOU HAVE A COPY OF THAT AS WELL.
THIS FUND IS RUNNING MUCH BETTER RIGHT NOW.
YOU CAN SEE IT'S VERY BLURRY BUT I KNOW YOU HAVEHAVE COP ANY PI IN FRONT OF YOU.
5/12THS OF THE YEAR. WE SPEND 37.1%.
SO WE ARE 2. 7 MILLION BETTER THAN EXPECTED IN TERMS OF OUR BUDGET. AND ALTHOUGH THAT IS CAUSE FOR CELEBRATION AND IT CERTAINLY IS, A WORD OF CAUTION.
I WOULDN'T BE DOING MY JOB IF I DIDN'T.
ONE OF THE CHALLENGES OF BUDGETING EVERY YEAR IS PREDICTING WHAT THE CIRCUIT BREAKER LOSS WILL BE.
THE CIRCUIT BREAKER IS MAX AMOUNT THEY WOULD PAY WOULD BE 1% OF THEIR GROSS ASSESSED VALUE OF THEIR HOME.
WE DO OUR BEST -- AND FRANKLY WE USE THE RESOURCES WE HAVE WITH THE DEPARTMENT OF LOCAL GOVERNMENT FINANCE TO PREDICT WHAT THE TAX CAP LOSS WILL BE. COLLECTIVELY WE THOUGHT IT WOULD BE $2. 4 MILLION IN THE OPERATIONS FUND.
THAT'S HOW WE BUDGETED AND PLANNED FOR THAT.
WE GOT A WONDERFUL CIRCUIT BREAKER SAID THE CIRCUIT BREAKER FOR HAMILTON SOUTHEASTERN 4.6.
LITTLE OVER $2 MILLION MORE THAN WE WERE EXPECTING.
THIS FUND IS DOING WELL AS WE STAND NOW AND OKAY.
BUT I DON'T WANT TO CELEBRATE TOO MUCH THAT WE'RE 2. 7 MILLION UNDER EXPECTED EXPENSES AT THIS POINT BECAUSE FRANKLY THE REVENUE IS NOT GOING TO MATCH WHAT WE THOUGHT IT WOULD.
RIGHT NOW THE REVENUE IS NOT INCLUDING THE JUNE DISPERSEMENT, SO UNLIKE EDUCATION, WE WON'T HAVE A CASH BALANCE SUMMARY. THAT'S NOT AN ACCURATE PORTRAYAL OF THE OPERATIONS FUND.
THIS FUND IS IN A GOOD SPOT RIGHT NOW.
BUT UNDERSTAND THAT THE REVENUE IS GOING TO COME IN LESS THAN WHAT WE ANTICIPATED.
>> I WANTED TO ASK ABOUT I SEE TWO THINGS ON HERE.
THE FIRST -- SECOND LINE, LEGAL SERVICES.
[00:45:05]
IT LOOKS LIKE THAT'S A FAVORABLE VARIANCE OF NOT MUCH BUT IT'S FAVORABLE, $1275?>> THAT'S THE NEGATIVE. SO WE'RE PAST.
OVER. >> THESE ARE OUR BEST PREDICTIONS COME BUDGET TIME, $330 MILLION BUDGET TO NAIL A LINE ITEM IS PRETTY HARD.
>> AND THEN THE OFFICE OF THE SUPERINTENDENT, IS THAT THE CENTRAL OFFICE, THE ENTIRE ADMINISTRATIVE OFFICE? WHAT IS THAT?
>> OFFICE OF THE SUPERINTENDENT IS A FUND CATEGORY AND EXPENDITURE CATEGORY USED TO PURCHASE ANYTHING RELATED TO A LOT OF CASES CENTRAL OFFICE BUT EVEN TIMES FAR REACHING TO SUPPORT THE DISTRICT IN GENERAL. SO IF IT'S AN OPERATIONAL EXPENSE THAT TIES TO THIS OFFICE, THIS IS NOT JUST SALARIES AND BENEFITS OF THE CENTRAL OFFICE STAFF.
THERE ARE ADDITIONAL SUPPLIES AND EQUIPMENT AND THINGS THAT GO IN
HERE. >> IS THIS REALLY THE OPERATION OF THIS BUILDING?
>> I CAN'T REALLY SAY OPERATION OF THIS BUILDING BECAUSE THEN YOU HAVE ELECTRICITY AND HEATING AND AIR. THAT'S NOT GOING TO LIVE IN THIS LINE.
>> A LOT IS SALARY TRANSPARENTLY, BUT THERE ARE ADDITIONAL ITEMS THAT COME OUT OF THERE THAT GET CODED IN OFFICE OF THE SUPERINTENDENT.
>> AND THIS IS VERSUS WHAT WE INITIALLY BUDGETED YOUR PECKATIONS VERSUS REALITY HERE?
>> THE OTHER ONE -- I WOULD LIKE SOME MORE EXAMPLES, SUZANNE, BUT I WANTED TO -- THE BIGGEST ONE ON HERE IS -- OH, HALFWAY DOWN A LITTLE LESS THAN HALFWAY. 25860 HARDWARE/SOFTWARE SUPPORT LOOKS LIKE WE'RE NOT FAVORABLE BY 1. 7 MILLION.
OBVIOUSLY IT STILL ADDS UP FAVORABLY.
SURE. >> BUT THAT'S A BIG ONE.
>> YOU DO A LOT IN FACT OPERATIONS FUND, CECELY.
>> I'M GOING TO REPEAT THAT SINCE YOU'RE NOT ON THE MICROPHONE OVER THERE FOR ANYBODY LISTENING.
WE HAVE TO LOOK AT BOTH OF THOSE LINES TOGETHER SO THAT 25850 NETWORK SUPPORT AND 25860 HARDWARE/SOFTWARE SUPPORT F WE LOOK AT BOTH OF THOSE TOGETHER AS KIND OF TECHNOLOGY, ONES IN OUR FAVOR BY ALMOST A MILLION, THE OTHER UNFAVORABLE BY 1.7.
SO IF YOU LOOK AT THEM TOGETHER, THAT'S JUST OVERALL TECHNOLOGY EXPENSES THROUGHOUT THE DISTRICT.
>> SO THE LAPTOPS AND THE NEW IPADS, THE LAPTOPS, THE PROGRAMS WE USE, ALL THAT STUFF?
>> YEAH. SOME OF THOSE ARE LINE ITEMS IN GO BONDS. WE WANT TO BE CAREFUL WITH THAT.
THE MOST RECENT ITEM THAT GAME BEFORE THE BOARD WITH THE DELL LAPTOPS, THAT'S A G.O. BOND EXPENSE. IT'S CERTAINLY GOOD TO LOOK AT IT IN THIS DETAIL. THERE'S ABSOLUTELY NOTHING WRONG WITH THAT. THE MOST IMPORTANT IS THE FINANCIAL NUMBER AT THE BOTTOM, RIGHT? BECAUSE THESE ARE BUDGETED NUMBERS. AND WE'RE DOING OUR BEST TO HIT THOSE NUMBERS. AND WE MIGHT CODE SOMETHING, YOU KNOW, IN THE HARDWARE/SOFTWARE SUPPORT WHEN WE EASILY COULD HAVE CODED IN THE NETWORK SUPPORT.
THERE'S SOME GRAY AREA THERE IF YOU WILL.
>> SURE. AGAIN ON THIS ONE, WE ARE FAVORABLE 2. 7 MILLION OR 37. 1 WHEN WE'RE TRYING TO GET TO WHAT'S THAT NUMBER, 42%?
>> ALL THIS IS SHOWING IS WE ARE UNDER BUDGET IN TERMS OF OUR EXPENSES. WE HAVE BROUGHT -- WE ANTICIPATED MORE REVENUE THAN WHAT WE HAVE EXPENDED HERE. A WORD OF CAUTION IS THAT CIRCUIT BREAKER
PIECE. >> SO THE FAR LEFT COLUMN WITH BUDGET, THAT'S WHAT YOU INITIALLY WERE PROJECTING,
CORRECT. >> THEN YOU HAVE THE REVISED BUDGET WHICH IS THE FOURTH COLUMN OVER SO YOU ADJUSTED FOR
THAT. >> ALL THE REVISED BUDGET IS TAKING IN ENCUMBRANCE FROM THE PREVIOUS
OKAY. >> SO A P.O. THAT ROLLED OVER FROM '24 TO '25.
>> OKAY. >> OR SOMETHING HAPPENED AT THE END OF THE YEAR WHERE IT WAS NOT ACHILLESED OUT IN '24. WE ENCUMBERED IT. SAID WE WERE GOING TO SPEND IT BUT WE DIDN'T SPEND IT IN '24 SO IT CARRIED OVER TO '25. JUST AN ADDITION OF THOSE TWO.
SORT OF COLUMN ONE PLUS COLUMN TWO.
>> GOT IT. I'M LOOKING AT BUDGET FROM ACTUAL. TO SEE HOW WE MAY NEED TO SHIFT OR ADJUST AS WE CONSIDER TECHNOLOGY DISTRICT WIDE. ARE WE GOING TO CONTINUE TO DO THOSE AND G.O. BONDS IN THE FUTURE AS WE TAKE THE COHORTS OF STUDENTS AND SHIFT THEM TO LAPTOPS THAT THE DISTRICT OWNS. WE'RE STARTING TO DO THAT SO THAT ALL CLASSES RATHER THAN BRING YOUR OWN
SO I WOULD SAY TO MAKE A FIRM STATEMENT
[00:50:01]
THAT EVERYTHING WILL GO TO THE G.O. BONDS IS PROBABLY NOT ACCURATE.>> OKAY. BUT JUST FOR THIS YEAR, THAT
PURCHASE. >> ABSOLUTELY STILL GOING FORWARD GOING TO PLAN A LINE IN THE G.O. BONDS TO SUPPORT THE TECHNOLOGY IN OUR SCHOOL DISTRICT. CLEARLY IT'S NOT COVERING ALL OF THE COSTS.
>> AND I DON'T THINK THAT WOULD EVER BE THE CASE.
BUT IT WILL BE A PORTION OF THAT.
YEAH. >> MARRYING AREAS OF OPPORTUNITIES FOR COST SAVINGS SO THAT'S WHAT JUMPS OUT AT ME.
>> I'M GOING TO ASK ONE MORE IF I CAN.
LIKE YOU SAID, WE'RE GETTING INTO SOME DETAILS. BUT I THINK THERE'S BEEN SOME QUESTIONS FROM COMMUNITY. THAT'S OUR JOB TO BRING THOSE UP AND MAKE SURE EVERYBODY IS HEARD.
>> THERE'S BOTH THIS OFFICE OF THE SUPERINTENDENT AND THEN I FOUND THERE'S OFFICES OF THE BUSINESS MANAGER. THAT ONE LOOKS FAVORABLE BY NOT A TON BUT 21,000. I GUESS MY QUESTION IS AND AGAIN IF YOUR GOING TO GET TO THIS ON ANOTHER SLIDE, ONE OF THE BIG THINGS WE HEARD IS ABOUT STAFFING HERE AT CENTRAL OFFICE.
WE'VE ADDED SOME POSITIONS. WE'VE REMOVED SOME POSITIONS.
HOW IS THE STAFFING LEVELS OF JUST OUR CENTRAL OFFICE ADMINISTRATION GOING IN ACCORDANCE WITH OUR BUDGET IN ARE WE MORE THAN EXPECTED, LESS THAN EXPECTED, RIGHT ON PACE? I DON'T KNOW WHERE THOSE WOULD BE IN HERE.
>> SURE. TO ANSWER YOUR QUESTION, THERE'S A SLIDE COMING. BUT ALSO, WHEN YOU LOOK AT THE OFFICE OF THE BUSINESS MANAGER, YOU LOOK AT THAT BUDGET AT 576,000 COMPARED TO A BUDGET IN THE OFFICE OF THE SUPERINTENDENT OF $4 MILLION.
SO WHEN YOU LOOK AT THE VARIANCE, WE WANT TO KEEP IN MIND THE BUDGETS THAT WE'RE TALKING ABOUT HERE.
AGAIN, I KNOW CECELY MANAGES ALL OF THE OPERATIONS.
SOME EXAMPLES OF COST, OFFICE OF THE BUSINESS MANAGER VERSUS OFFICE OF THE SUPERINTENDENT.
>> OKAY. PERFECT SEGUE TO ADMINISTRATIVE
EACH ONE OF THESE SHEETS, REVENUE OPERATION.
WE LOOK AT THIS VERY FIRST COLUMN, YOU'RE SAYING LAST YEAR THESE WERE OUR PROJECTIONS OF WHERE WE WERE BUDGETING FOR THIS YEAR AND THIS NUMBER OVER HERE IS SAYING WHERE WE ARE CURRENTLY.
THEN WE'LL USE THIS INFORMATION GOING INTO THE NEXT WHEN YOU GUYS FIGURE FOR THE FOLLOWING YEAR, CORRECT?
>> SO, MR. ORR BROUGHT UP THE CONVERSATION ABOUT ADMINISTRATIVE STAFFING AND WHERE THAT HAS LANDED.
SO THE CHART YOU SEE BELOW YOU HAS A LOT OF DATA.
WHAT THIS INCLUDES IS ALL OF OUR CERTIFIED ADMINISTRATORS AND NONCERTIFIED WHAT WE CALL DIRECTORS.
I TOOK SOME SNAPSHOTS IN TIME OF LOOKING AT KIND OF WHERE WE WERE IN SORT OF THE JANUARY, AUGUST FLOW EVERY YEAR AND THEN HIGHLIGHTED FEBRUARY OF '24 INTO ESSENTIALLY WHERE WE ARE CURRENT MAY OF '25. YOU CAN SEE SOME EBBS AND FLOWS, RIGHT? IN AUGUST OF '23, THE DISTRICT AT 106 -- I'LL COIN THEM ADMINISTRATORS. THESE FOLKS ALL HAVE ADMINISTRATIVE BENEFITS. AND ALMOST ALL WORK AT 26 O'DAY CALENDAR SCHEDULE, MINUS OUR BUILDING PRINCIPALS AND SOME OF THOSE FOLKS AND CERTAINLY BUILDING PRINCIPALS WORK A FULL YEAR AT THE HIGH SCHOOL. I WANT TO HIGHLIGHT THE DIFFERENCE BETWEEN FEBRUARY OF '24 TO MAY OF '25. THAT'S A GROWTH OF EIGHT.
I WANT TO BE CAREFUL OF THAT BECAUSE JUST BACK IN AUGUST OF '23 THE NUMBER WAS 106.
BUT THE GROWTH OF 8 FROM FEBRUARY OF '24 TO MAY OF '25 REALLY HONED INTO A NEW ASSISTANT PRINCIPAL AND NEW DEAN AT EACH HIGH SCHOOL. SO THAT'S FOUR.
AND THEN FOUR ADDITIONAL INSTRUCTIONAL COACHES THAT WERE ADDED. THERE ARE EBBS AND FLOWS OF POSITIONS THAT NO LONGER EXIST THAT WERE REPLACED BY SOMETHING ELSE. THIS IS JUST A SIMPLE HEAD COUNT. AND I WANTED TO TRY TO DRAW A LITTLE BIT OF A LINEAR LINE BETWEEN FEBRUARY OF '24 TO MAY OF '25 OF THOSE EIGHT POSITIONS.
ONE OTHER COMMENT I WOULD MAKE IS MOVING FORWARD FOR THE '25/'26 SCHOOL YEAR, THERE HAVE BEEN SEVEN NEW POSITIONS ADDED AND THOSE INCLUDE THE NAMES YOU SEE THERE, DIRECTOR OF CAREER AND TECH ED, THAT WAS A PASSION I THINK WE HEARD FROM THE COMMUNITY SUPPORTING OUR OWN. EXECUTIVE DIRECTOR OF ELEMENTARY ED, DISTRICT WORKPLACE LEARNING MANAGER WHICH GOES ALONG WITH THE CAREER AND TECH ED AND FOUR INSTRUCTIONAL COACHES. ONE OF THE THINGS I WOULD POINT OUT OF ALL THESE POSITIONS, MINUS THE EXECUTIVE DIRECTOR OF ELEMENTARY EDUCATION, WHICH IS A TRUE CENTRAL OFFICE
[00:55:01]
POSITION, THE REMAINDER OF THESE POSITIONS ARE DIRECTLY IN THE SCHOOL BUILDINGS. YES THE DIRECTOR OF CAREER AND TECH ED WILL HAVE A LITTLE BIT OF BOTH, BUT MY UNDERSTANDING AND I KNOW OUR TEAM CAN SPEAK TO THAT, THAT PERSON WILL HAVE AN OFFICE AT HSE HIGH SCHOOL ALONG WITH OUR WORKPLACE LEARNING MANAGER.THESE POSITIONS ARE MUCH MORE CONNECTED TO THE BUILDINGS AND SUPPORTING OUR TEACHERS.
>> I THINK IT'S IMPORTANT YOU MENTIONED IT FIRST OF ALL, IF WE'RE GOING TO CREATE OUR OWN CAREER AND TECHNICAL EDUCATION PROGRAM IT TAKES STAFFING.
AND THE OTHER THING IS, IF WE'RE GOING TO COMPLY WITH THE NEW HIGH SCHOOL DIPLOMA REQUIREMENTS, WORK- BASED LEARNING EXPERIENCES IS A BIG PIECE OF THAT AND SO ONCE AGAIN, IT REQUIRES SOME STAFFING. AS THINGS GET PASSED A THE STATE LEVEL, WE'VE GOT TO STAFF UP AND IN ORDER TO SUPPORT OUR STUDENTS SO THEY GET ALL THOSE OPPORTUNITIES. FULL TIME INSTRUCTIONAL COACHES WE'VE ALREADY SEEN SOME INCREASED SCORES ACADEMICALLY AND I READ THIS DIRECTLY RELATED TO THAT.
AND AS WE LOOK AT IMPROVING OUR I- LEARN SCORES AND THE INTERMEDIATE AND MIDDLE SCHOOLS, YOU HAVE TO HAVE AN INSTRUCTIONAL COACH THERE IN ORDER TO HELP SUPPORT TEACHERS. AND THE RESULTS THAT WE'VE SEEN ALREADY BECAUSE OF THAT SUPPORT, YOU KNOW, WE'RE NOT SUPPOSED TO RELEASE THIS YET BECAUSE IT'S NOT BEEN PUBLIC FROM THE STATE, BUT PRELIMINARILY, LAST YEAR WE HAD FIVE ELEMENTARY SCHOOLS AT 95% AND ABOVE. PRELIMINARILY, WE'RE AT 11 ABOVE 95%.
THAT'S A DIRECT CORRELATION TO HAVING AN INSTRUCTIONAL COACH FULL TIME IN EACH ELEMENTARY SCHOOL SUPPORTING TEACHERS TO MAKE CERTAIN THAT WE HAVE THE HIGHEST LEVEL OF INSTRUCTION AND LOOK AT DATA TO BUILD THE SKILLS OF OUR STUDENTS. SO, I THINK IT'S REALLY IMPORTANT THAT ONCE AGAIN WE EMPHASIZE WE'RE HIRING PEOPLE TO SUPPORT TO MAKE CERTAIN WE HAVE AND KEEP HIGH-LEVEL AM ACADEMIC PROGRAMMING IN OUR SCHOOL DISTRICT.
>> CAN YOU CLARIFY ONE THING. THOSE TEACHING COACHES, CONFIRM, YOU JUST SAID IT BUT I WANT YOU TO REITERATE IT, THEY'RE IN EVERY SCHOOL BUILDING OR ELEMENTARY SCHOOL, IN ALL OF OUR.
>> WE HAVE FULL TIME ONE FULL TIME.
WE HAVE TAKEN A RECOMMENDATION FROM THE NATIONAL INSTITUTE FOR EXCELLENCE IN TEACHING AND WHEN WE GET OVER 30 SECTIONS IN AN ELEMENTARY, WE HAVE TWO.
>> BECAUSE WE HAVE SOME ELEMENTARIES THAT HAVE LARGE
RIGHT. >> AND LIKE IN '26 WHEN WE OPEN FISHERS ELEMENTARY, THAT'S LOOKING TO HAVE AN ENROLLMENT THAT COULD BE OVER 30 SECTIONS THAT WE WOULD HAVE TO ADD ONE THERE AS WELL.
>> CAN YOU CLARIFY THEN JUST FOR -- THERE'S BEEN CHATTER OF MISUNDERSTANDING WHAT IT IS THESE INSTRUCTIONAL COACHES ARE DOING.
ARE THEY SUPPORTING OUR TEACHERS AND HELPING THEM IN ROLLING OUT LITERACY AND EDUCATION PROGRAMS? OR ARE THEY THERE TO ASSIST FOR THE STUDENTS AND HELPING THEM ONE ON ONE EARN GROUPS TO ASSIST THEM IN THEIR LITERACY AND GROWTH?
>> THE FOCUS IS ON THE TEACHERS AND HELPING INSTRUCTIONAL PRACTICES.
BUT, THERE'S ALSO TIMES WHERE THEY MAY HAVE A SMALL GROUP OF STUDENTS THAT THEY'RE GOING TO WORK WITH TO HELP FILL SOME GAPS THAT WE HAVE WITH THEM ACADEMICALLY.
>> SO, BUT JUST THE CONSISTENCY AND THAT THEY'RE LOCATED IN ONE BUILDING AND THEY HAVE TIME TO ACTUALLY DO THE WORK IS THE DIFFERENCE MAKER.
>> EXCELLENT. THANK YOU FOR CLARIFYING.
>> CAN I ALSO ASK REALLY QUICK, IF WE WOULD HAVE DONE THE PARTNERSHIP FOR THE CAREER AND TECHNICAL PROGRAMMING CHARTER SCHOOL, IF YOU WILL, WOULD WE HAVE STILL NEEDED TO FUND THE DIRECTOR AND TECHNICAL EDUCATION POSITION?
>> NO, THEY WOULD HAVE BEEN TAKEN BY
>> I'M LOOKING THROUGH THIS SLIDE HERE.
AND THIS IS INTERESTING. AS MS. THOMAS SAID, THERE'S BEEN A LOT OF TALK IN THE COMMUNITY ABOUT THIS VERY LARGE INCREASE IN STAFFING HERE AT CENTRAL OFFICE SPECIFICALLY.
BUT REALLY THROUGHOUT THE DISTRICT WITH ADMINISTRATORS. THOSE NUMBERS -- SO EIGHT MORE SINCE FEBRUARY OF '24, WHICH IS ESSENTIALLY WHEN YOU CAME ON BOARD HERE.
BUT THEN EVEN BACK ALL THE WAY TO '22, IF WE LOOK ALL THE WAY FROM '22 TO '25, IT'S EIGHT PEOPLE. AND THAT DOES TAKE INTO CONSIDERATION, I THINK -- I THINK SOMETHING PEOPLE WOULDN'T NECESSARILY COME UP WITH OFF HAND IS THESE INSTRUCTIONAL COACHES. I THINK WHEN WE'RE HEAR WE'RE HEAVY ON ADMINISTRATION, WE THINK PEOPLE HERE AT CENTRAL OFFICE.
>> YEAH. >> SO THAT TAKES INTO CONSIDERATION THAT. SO, I MEAN, WE'RE REALLY THREE, THREE MORE PEOPLE HERE AT CENTRAL OFFICE?
>> ACTUALLY JUST ONE HOUSED HERE.
>> REALLY JUST ONE HOUSED HERE.
[01:00:01]
>> PART IS WE'RE STARTING OUR OWN CTE
YEAH. >> WHICH AGAIN WAS THE WILL OF THE COMMUNITY. WE DIDN'T WANT TO GO THE ROUTE OF SEPARATE CHARTER DEAL, YOU KNOW, PEOPLE SPOKE TO THAT. THAT'S FINE.
>> SO IN MY OPINION TO DO SOMETHING OURSELVES WITH MAYBE ONE MORE PERSON HERE, A COUPLE MORE OUT IN THE DISTRICT IS FAIRLY IMPRESSIVE.
>> WE'RE STILL FOR THE SIZE OF DISTRICT WE ARE, WE'RE STILL ONE OF THE SMALLEST CENTRAL OFFICES IN THE STATE OF INDIANA, IF YOU LOOK AT THE TOP EIGHT TO TEN SCHOOL DISTRICTS IN THE STATE.
>> ALL THESE NUMBERS WOULD BE HERE IN THIS OPERATIONS FUND FOR MOST OF THESE PEOPLE?
>> CERTIFIED ADMINISTRATORS --
>> MY PREDECESSOR WAS NOT A LICENSED EDUCATOR.
THAT POSITION WOULD BE PAID OUT OF THE OPERATION FUND.
MY POSITION IS PAID OUT OF THE EDUCATION FUND.
>> THAT'S NOT CORRECT. I'M A CERTIFIED EDUCATOR, I'M PAID OUT OF THE OPERATIONS FUND FOR MY POSITION. BAD EXAMPLE.
BUT YES. CERTIFIED ADMINISTRATORS THAT ARE IN BUILDINGS ARE BEING PAID OUT OF THE EDUCATION FUND.
LIKE MYSELF. THESE ARE MY BAD EXAMPLE THAT I WORK IN THE CENTRAL OFFICE THEN I'M PAID OUT OF THE OPERATIONS FUND.
IDEA. >> BUT ALSO, OUR ASSISTANT SUPERINTENDENT POSITIONS ARE OPERATIONS FUNDED.
>> AND THEY'RE RESPONSIBLE FOR ACADEMIC
RIGHT. >> SO THEY DO ALL THE WORK IN THE EDUCATION FUND AREA, BUT THEY'RE AN OPERATION FUND
EXPENDITURE. >> AND THE OPERATIONS FUND HAS A NET FAVORABLE BALANCE.
>> AND I WILL SAY, TOO, IN '23/'24, WE WERE, I THINK, RANKED 11TH IN SALARIES THAT WE PAID IN ADMIN IN OUR AREA.
WE WERE ONLY 11TH. SO, LATER I'LL SEND AN EMAIL AND ASK. I WANTED TO SEE IF WE HAVE BEEN ABLE TO RIGHT SIZE OR MOVE THAT UP A LITTLE BIT. BUT IN '23 WE WERE GIVEN A CHART THAT SHOWED THAT HSE WAS BEHIND AVON, BROWNSBURG, CARAMEL, CENTER GROVE, FRANKLIN, QUITE A BIT OF OTHERS. WE WERE 11TH IN OUR ADMIN OFFICE. I'M NOT ALL EXCITED ABOUT PAYING TONS OF MONEY OUT, BUT AT THE SAME TIME, WITH THE SIZE OF OUR SCHOOL BEING 21,000 STUDENTS AND, WHAT, 2,500 EMPLOYEES AND STAFF, WE WERE 11TH IN 2023.
AND I KNOW ONE OF MR. MAPES PLANS COMING IN, WHICH YOU HAVE BEEN DOING WELL AT IS RIGHT SIZING THAT ADMIN, SO IT IS STRUCTURING FUNCTIONAL SUPPORT FOR OUR TEACHERS FOR OUR STUDENTS AND THE REST OF THE DISTRICT. SO, I COMMEND YOU ON DOING THAT.
I WOULD, THOUGH, ONE OF MY QUESTIONS WILL BE AFTER THE MEETING AND I'LL EMAIL IT IS SENDING YOU THIS CHART TO SEE HOW WE'VE RIGHT SIZED AND WHERE WE ARE NOW COMPARED TO WHERE WE WERE
THEN. >> SO, ONE PIGGY BACK TO THAT.
I THINK YOU ALL WOULD HAVE RECEIVED THE ISBA MANAGEMENT SURVEY RESULTS.
SCHOOL BOARD ASSOCIATION WHERE EVERY SCHOOL DISTRICT IS SURVEYED. THAT'S SORTABLE BY POSITION.
SO YOU CAN SORT BY SUPERINTENDENT AND SAY, WHERE DOES HSE FALL IN THAT. IT'S NOT THE TOP.
I CAN ASSURE YOU. WHERE DOES THE ASSISTANT SUPERINTENDENT? WHERE IS THE DIRECTOR OF HUMAN RESOURCES? DIRECTOR OF OPERATIONS.
YOU CAN SORT EACH ONE OF THOSE AND SEE WHERE HS EX FALLS IN THAT. HAVING DONE THAT, YOU NAILED IT.
>> RIGHT. AND THEY HAVE THAT CFO, DEANS, PRINCIPALS, ASSISTANT PRINCIPALS, INTERIM PRINCIPALS, HIGH SCHOOL PRINCIPALS, HIGH SCHOOL ASSISTANT PRINCIPALS, SO IT'S ALL ON HERE.
INSTEAD OF GOING ON AND ON, I'LL JUST GIVE THAT LATER AND I WOULD LIKE TO SEE WHERE WE ARE COMPARED TO '23 BECAUSE I KNOW WE'VE DONE IMPROVEMENTS AND THAT'S -- I'M GLAD TO SEE THAT. THANK YOU.
>> AND THE COMMUNITY HAS SPOKEN ABOUT HAVING CTE, SO I'M GLAD TO SEE THE DIRECTOR OF CAREER AND TECHNICAL EDUCATION. IF WE HAD WENT THE OVER ROUTE, WE WOULD HAVE LOST ADM, IS THAT CORRECT? A CONSISTENT AMOUNT OF ADM.
>> YEAH. I DON'T KNOW THAT I WOULD NECESSARILY SAY THAT. THAT'S PROBABLY A WHOLE PRESENTATION IN ITSELF THAT WE ALL WORK THROUGH. TO DRAW A LINEAR LINE WITH LOSING STUDENTS THERE'S ARGUMENTS YOU COULD HAVE GAINED STUDENTS. I'M NOT COMFORTABLE SAYING EITHER WAY ON THAT. WANT TO REHASH THAT ENTIRE DISCUSSION AGAIN FOR OBVIOUS REASONS.
I THINK THERE'S ALSO SOMETHING ABOUT THEY WERE GOING TO BRING I THINK NEARLY $25 MILLION TO HELP US WITH THAT AND THEN WE ALSO WOULD HAVE HAD AN ON GOING PERCENTAGE I THINK 2 OR 3%, 3% OF THEIR REVENUE WOULD COME BACK HERE SO IT WOULD HAVE SOMEHOW MADE UP. AGAIN, WE DON'T HAVE TO GET INTO ALL
THAT. >> THE ONLY FINAL COMMENT I WOULD MAKE ON THIS SLIDE, REMEMBER, THIS IS NUMBER OF PEOPLE, RIGHT? SO THERE WERE POSITIONS THAT NO LONGER LIVE HERE THAT WE'VE ADDED OTHER POSITIONS. SO SOMETIMES THAT CAN BE A BIT CONFUSING. WELL, X, Y, Z POSITION WAS ADDED. YES, BUT SOMETHING ELSE FELL OFF WHEN THAT POSITION WAS ADDED.
SO I THINK THIS IS A TRUE APPLES TO APPLES.
[01:05:05]
ANOTHER PIECE OF INFORMATION I KNOW THE BOARD HAS ASKED FOR IS LEGAL EXPENSES. MR. ORR, I KNOW YOU COMMENTED ON THAT EARLIER. I PUT A SLIDE TOGETHER COMPARING OUR CURRENT LEGAL COUNSEL APRAUFED BY THE BOARD IN FEBRUARY OF '23 TO SERVE IN THAT CAPACITY.WHAT YOU SEE IN FRONT OF YOU IS ANY RELATED EXPENSE THAT WE PAID THAT WAS NOT RELATED TO BOND ISSUANCES. I TOOK ALL THOSE OFF. IN SOME CASES THEY'RE PROFESSIONAL DEVELOPMENT COSTS RELATED TO ATTENDING A CONFERENCE THEY WERE SUPPORTING. I TOOK THOSE OFF.
I REALLY TRIED TO BREAK THIS DOWN BY RETAINER COST, LITIGATION AND LABOR. SO LABOR WOULD REFER TO ANY KIND OF ENDING SEPARATION AGREEMENT, MAYBE WITH AN EMPLOYEE THAT OUR LEGAL TEAM WAS INVOLVED IN THE PROCESS.
OBVIOUSLY THE ULP WE'RE FAMILIAR WITH AND COLLECTIVE BARGAINING. OF NOTE, THE LITIGATION IS 12 LAWSUITS DURING THIS TIME. IN ADDITION TO, AGAIN, MANY DIFFERENT LABOR CONTRACTS. AGAIN, YOU SEE THE ULP AND THE COLLECTIVE BARGAINING. I WILL SAY ALSO THAT IN 2023, AS BARNS AND THORNBURG CAME ON BOARD, THEY ESSENTIALLY AS A PART OF THE RETAINER TOOK ON COLLECTIVE BARGAINING. THEY SORT OF ATE THAT COST AS A GOODWILL EFFORT THE FIRST YEAR.
THAT'S WHY YOU DON'T SEE THAT THERE.
THAT COST DID EXIST, IT WASN'T ON TO US.
AND THEN ONE OTHER NOTE I WOULD MAKE WITH THIS IS THIS IS WHEN WE PAID THE COST. SO, IN SOME CASES, YOU KNOW, THE COST MAY HAVE HAPPENED. GREAT EXAMPLE, RIGHT, THE CARRY-OVER COLLECTIVE BARGAINING FROM '24/'25.
A PORTION OF THE BILL WAS PAID IN '24 AND PORTION PAID IN '25.
THIS REFLECTS WHEN WE PAID FOR IT AND WHEN IT CAME TO BOARD.
>> I KNOW YOU WOULDN'T HAVE BEEN HERE FOR IT.
I REMEMBER SEEING SOME OF IT BEFORE WE CAME ON -- BEFORE I WAS ON THE BOARD. ANY HISTORICAL REFERENCE TO WHAT WE WERE DOING PRIOR?
>> YEAH. '23 IS A TOUGH YEAR BECAUSE IT WAS THE TRANSITION YEAR, RIGHT? AGAIN, THEY TOOK OVER IN 2023. YOU HAD SOME CARRY- OVER BILL.
OUR PREVIOUS GROUP WE PAID ABOUT $52,000 TO IN 2023.
THAT WOULD HAVE BEEN BEGINNING OF THE YEAR, ANYTHING CARRIED OVER FROM '22. THEN THE CALENDAR YEAR 2022, THAT NUMBER WAS ABOUT $139,000.
>> NUMBER OF ISSUES AND LAWSUITS LEGAL HAD TO TAKE CARE OF, THAT'S A HARD APPLES TO APPLES COMPARISON AS WE LOOK AT THIS, WHEN YOU BROUGHT BARNES IN, YOU KNEW AT THAT TIME THAT RATES WERE HIGHER FROM SERVICES.
BUT, WHEN YOU GET TO LEGAL, IT'S REALLY HARD TO SAY HOW MANY CASES DID YOU HAVE? WHAT WERE THEY DEALING WITH?
AND HOW LONG THEY RAN. >> WE CAN'T GET INTO THOSE.
IT MAKES IT DIFFICULT TO DISCUSS THE FINANCES OF BECAUSE WE CAN'T DISCUSS THE CASES.
WE CAN'T SIT HERE AND GO THROUGH EVERY CASE AND WHY DID IT COST SO MUCH.
IT'S NOT ALOUD NOR SHOULD IT BE.
>> BUT KNOWING THIS, AGAIN, KIND OF SIMILAR TO THOSE BIGGER POINTS COMING FROM THE COMMUNITY, THE SIZE OF ADMIN.
I THINK WE JUST TACKLED THAT. THE COST OF LEGAL EXPENSES.
WE'RE TALKING ABOUT THAT NOW. SO IN '22 IT WAS ABOUT 140,000 THEN '23 WOULD HAVE BEEN A COMBINATION. YOU'RE SEEING THAT 108,000 IS ALL IN OR WAS IT 108 FROM BARNES PLUS THE 52 FROM CCHA.
>> CORRECT. WHAT YOU SEE ON THE SCREEN IS JUST THE COST OF BARNES.
>> SO THAT YEAR COMBINED WOULD HAVE BEEN ABOUT 160. YOU GOT
THEN 220. NOW WE'RE ONLY -- IS THAT 126, THAT'S PAYMENTS THROUGH JUNE SO ABOUT HALF THE YEAR?
5/12THS. >> WE'RE ON PACE TO EXCEED THAT AGAIN. AGAIN, IT'S DIFFICULT TO TALK ABOUT BECAUSE WE CAN'T GO THROUGH THE CASES AND THE
WHYS. >> I DO WANT TO CORRECT MYSELF THERE BECAUSE WE ALREADY APPROVED JUNE, SO TECHNICALLY THAT WOULD HAVE BEEN HALF THE YEAR'S EXPENSES NOT 5/12THS.
>> AND CAN WE ALSO CLARIFY, TOO, THAT WE'VE NEVER HAD IN THE PAST -- WELL, AT LEAST I SHOULDN'T SAY NEVER. SINCE I'VE BEEN ON THE BOARD AND THIS IS NOW MY SECOND TERM, WE DID NOT HAVE A PARLIAMENTARIAN SIT HEERG. THAT'S NOT AN ADDITIONAL COST.
>> ATTENDING THE BOARD MEETING PART OF THEIR
RETAINER. >> I DID QUICK MATH ON THAT.
EVEN IF THAT DOES GET TO 250,000, THAT WOULD BE . 07% OF OUR TOTAL ANNUAL BUDGET. I DON'T KNOW HOW THAT COMPARES TO OTHER DISTRICTS.
IF YOU HAVE EXPERIENCE WITH THAT OR MR. MAPES.
250,000 IF LEGAL FOR $325 MILLION BUDGET.
[01:10:01]
TO SUZANNE'S POINT, WE'RE DOING SOME ADDITIONAL THINGS. THEY'RE GOING THROUGH POLICIES AND POLICY COMMITTEES SOME OF THOSE THINGS HAVEN'T BEEN TOUCHED SINCE 2011, 2012, 2013. THEY'RE GOING THROUGH ALL KINDS OF OTHER THINGS.>> THEY HAVE ALWAYS GONE THROUGH POLICY, THOUGH.
YEAH. >> WELL, BUT IN THE PAST THEY'VE ALSO HAD LEGAL REPRESENTATION SITTING IN THOSE COMMITTEE MEETINGS AND THEY AREN'T DOING THAT HERE.
>> AGAIN, MY BIGGER QUESTION IS LET'S SAY WE GET ALL THE WAY TO 250,000, HOW DOES THAT COMPARE IN YOUR EXPERIENCE N YOUR EXPERIENCE WITH OTHER DISTRICTS AS A PERCENTAGE OF A BUDGET?
>> ONCE AGAIN, IT'S -- YOU CAN'T COMPARE BECAUSE YOU DON'T KNOW WHAT ISSUES THEY HAVE.
I WAS AT DELL COM IS LONG TIME AND WE HAD MAYBE IN 14 YEARS WE MAY HAVE HAD FOUR LEGAL CASES THAT CAME UP THAT REQUIRED EXTENSIVE LEGAL EXPENSES.
SO, IT'S REALLY NOT SOMETHING YOU CAN PUT A COMPARISON OUT TO. THE RATES HERE THAT WE PAY ARE THE SAME RATES THAT WE PAID IN PERRY TOWNSHIP AND BARNES AND THORNBURG WAS OUR ATTORNEYS IN PERRY TOWNSHIP.
>> THAT'S AT LEAST HELPFUL. I WOULD AGREE.
I KNOW FROM MY INSURANCE WORLD, THE WORLD HAS CHANGED LITIGIOUSLY AS FAR AS HOW MANY THINGS ARE BROUGHT TO SUIT, HOW MANY THINGS HAVE TO BE DEFENDED.
YOUR RIGHT. CERTAINLY TEN YEARS AGO YOU CAN'T COMPARE BUT I WOULDN'T COMPARE THREE OR FOUR YEARS AGO THE NUMBER OF THINGS THAT ARE COMING TO BECOME LEGAL.
IT'S JUST DIFFERENT. SO AGAIN THE RATE IS THE SAME AS YOU HAD IN PERRY.
WE TRY TO DO OUR BEST TO MANAGE
IT. >> BEN TO YOUR POINT, I DON'T THINK WE HAD A ULP PREVIOUSLY EITHER.
>> BUT THERE WERE OTHER, THERE WERE OTHER LITIGATION CASES THAT WE HAD FOR THOSE YEARS. BUT I ALSO WANT TO ASK OR POINT OUT OR JUST REITERATE THAT HAS BEEN SAID THAT WE HAVEN'T HAD A LEGAL UPDATE IN ABOUT A YEAR.
AND WE WERE -- THAT IS ON OUR AGENDA OR OUR TO- DO LIST.
AND SO I'M SURE WE'LL GET UPDATES ON ALL THOSE CASES AND THOSE THINGS. AND WE CAN TALK ABOUT LATER OTHER FUNDING TO SEE THE SIDE BY
>> WE HAVE HAD UPDATES THROUGH EMAIL. BUT NOT ON A PUBLIC.
>> BUT I THINK WE HAVE AN EXECUTIVE SESSION
WE HAVE NOT HAD EXECUTIVE CONTENT LEGAL UPDATES IN ABOUT A YEAR.
>> SO ONE OF THE THINGS I'M AFFECTIONATELY KNOWN AT HSE IS THE BEAN COUNTER. I TAKE EVERY DOLLAR WE CAN POSSIBLY SAVE AND WE ARE PROUD OF THAT.
AND I SAY IT SELFISHLY BUT IT ABSOLUTELY HAS VERY LITTLE TO DO WITH ME. ONE OF THE THINGS THAT I AM MOST PROUD OF BEING A STAFF MEMBER HERE IS THE AMAZING COLLABORATION THAT TAKES PLACE.
THE TEAM SITTING TO MY LEFT WORKS HAND IN HAND WITH OUR FINANCE DEPARTMENT LITERALLY ON A DAILY BASIS CONSIDERING ANY NEW COSTS OR ANY OPPORTUNITY TO SAVE, WHETHER IT BE OPERATIONALLY, WHETHER IT BE NEW STAFF, WHETHER IT BE EVALUATING THAT, THE AMOUNT OF CONVERSATION THAT WE SPEND ON LITERALLY A DAILY BASIS OF WHAT CAN WE DO TO SAVE HERE IS SIGNIFICANT.
AND SO WHAT I TRIED TO BRING BEFORE YOU TODAY WERE SOME OF THE BIG ITEMS. CERTAINLY DON'T NEED TO TALK ABOUT EACH ONE OF THEM. BUT I'LL HIT A COUPLE OF THE HIGHLIGHTS. YOU MAY REMEMBER WITH OUR FALL CREEK INTERMEDIATE PROJECT, THAT DUE TO SOME TIMING, WE HAD TO KIND OF DELAY MOVING FORWARD WITH THE CONTRACTOR.
AND AS PART OF THAT PROCESS AND THE LEADERSHIP OF MR. RAUSCH, WE WERE ABLE TO APPROXIMATELY SAVE IN THE REBID ABOUT $3 MILLION IN THAT PROJECT. WITH ALL THE WORK WE HAVE DONE IN THE HEALTH SPACE MOVING TO AN EMPHASIS ON HIGH DEDUCTIBLE HEALTH PLANS, MOVING TO NEW PBMS, THERE'S SIGNIFICANT SAVINGS THERE.
REFUNDING OUR NEW CUSTODIAL CONTRACT YEAR OVER YEAR, THAT'S ABOUT A $400,000 SAVINGS, PROVIDING ADDITIONAL SERVICE AS WELL AS BETTER SUPPORT FOR THOSE EMPLOYEES IN MATERIALS OF HOLIDAYS AND BENEFITS.
THE WORK THAT WE PARTNERED ON THE CITY OF FISHERS HAS BROUGHT IN CONSUMABLE GRANTS TO HELP SUPPORT OUR EXPONENTIAL LEARNING SITES WHETHER THAT BE CONNER PRAIRIE. SOME OF THOSE SPACES THE CITY HAS STEPPED UP AND SUPPORTED SOME OF THE CONSUMABLES THERE AS WELL AS SUPPORTING US WITH DRAINING VARIANCES THAT WOULD HAVE COST US A LOT OTHERWISE. THE NEW AGREEMENT WITH COMMUNITY HEALTH. THE WORK THAT WE'RE DOING AT DURBIN SO BOTH ENGINEER THAT FROM A COST SAVINGS PERSPECTIVE BUT ALSO SORT OF TAKING THAT ONE IN HOUSE IN TERMS OF THE MANAGEMENT OF THAT PROJECT.
I COULD KEEP GOING ON AND ON. BUS DRIVER ROUTE ELIMINATION.
WE ELIMINATED TEN DRIVERS IN 21 ROUTES.
[01:15:02]
OUR PROPERTY CASUALTY INSURANCE. WE'RE GOING TO ABSORB A COUPLE TECHNOLOGY POSITIONS. I WILL SAY ONE OF THE STRENGTHS OF THIS TEAM IS CONSISTENTLY REBIDDING AND NEGOTIATING PURCHASES.SO, OPTION ONE IS THIS. THAT DOESN'T WORK FOR US.
WHAT CAN WITH WE DO TO CUT THAT DOWN.
GREAT. WHAT CAN WE DO TO DO MORE.
ONE I'M PROUD OF IS THE TELECOM SERVICE AUDIT.
WE SPENT THE LAST COUPLE MONTHS AUDITING EVERY PHONE LINE GOING INTO OUR SCHOOLS.
WHEN WE'RE DONE, WE THINK WE'LL SAVE ANNUALLY $170,000.
THAT'S NOT AN OFFICIAL NUMBER YET.
WE'RE WORKING THROUGH THAT, BUT THAT'S JUST ELIMINATING LINES THAT AREN'T NEEDED. LOOKING AT REDUCED RATES IN SOME SPACES. FINDING PLACES WHERE WE WERE BILLED INCORRECTLY. WE REALLY DOVE IN AND HAVE DONE A LOT OF WORK IN THAT SPACE. SO, COST AVERSION IS A BETTER WAY OF SAYING THIS THAN COST SAVING.
AT THE END OF THE DAY IT SUPPORTS OUR BOTTOM LINE.
WE'RE LOOKING AT MULTIPLE MILLIONS OF DOLLARS IN THESE EXAMPLES.
I COULD DO A WHOLE ANOTHER SLIDE ON A LOT OF OTHERS AND I'M THE BENEFICIARY OF STANDING UP AND SHARING THIS IT'S OUR TEAM THAT DOES IT EVERY SINGLE DAY.
>> I THINK IT'S SO EASY TO HIT THE BIG ONES, LIKE PERSONNEL AND, YOU KNOW, THIS IS -- THIS TAKES -- I KNOW A LOT OF TIME AND ENERGY TO DO THIS. AND I'M GREATLY APPRECIATIVE BECAUSE I THINK THIS REALLY GETS AT THE CRUX OF EXPLAINING WHY WE DO MULTI-YEAR CONTRACTS AS WELL, RIGHT? WHEN WE DO BID, IT'S NOT HAVING TO DO THIS YEAR OVER YEAR BUT STRATEGICALLY LOOKING AHEAD TO SET EXPECTATIONS AND FORECASTING AND PRICING AND FIX THAT AS MUCH AS WE CAN.
SO FOR PROLONGING, YOU KNOW, TWO, THREE, FOUR- YEAR CONTRACT.
SO I'M GRATEFUL FOR ALL THE WORK THAT YOU GUYS ARE DOING. REALLY GREAT JOB.
>> YEAH. I THINK IT'S WORTH MENTIONING BECAUSE I DON'T SEE HIM HERE BUT MR. MATT RAB, LOGAN, THOSE GUYS ON THE FACILITIES TEAM AND I'VE GOTTEN TO KNOW THEM THROUGH THAT COMMITTEE. I KNOW SUZANNEWAS ON THERE FOR YEARS. THEY JUST DO A GREAT JOB REBIDDING SOME OF THE THINGS. I THINK SOME OF THE THINGS WE TALKED ABOUT TO FIT WITHIN OUR TEN- YEAR PLAN, WE MOVED THINGS LIKE THE FCI PROJECT INSTEAD OF REDOING ENTIRE BUILDINGS JUST GOING FOR WHERE WE NEED THINGS SPECIFICALLY THAT FREED UP MONEY FOR OTHER THINGS THAT REALLY NEED IT.
SO WE'VE BEEN ABLE TO STAY ON BUDGET OVERALL.
AND I KNOW THAT'S -- YOU GUYS, ALL OF YOU, SO THANK YOU FOR THAT. I CAN TELL YOU THAT THE COMMUNITY APPRECIATES IT.
AND WE DO GET QUESTIONS A LOT OF TIMES WHEN WE THROW OUT A NUMBER, HEY, WE SAVED $10 MILLION THIS YEAR.
HOW? WHERE? PROVE IT. HERE IT IS.
SO, WE REALLY APPRECIATE THAT. COULD YOU GET IN AT ALL TO WHAT COULD BE REOCCURRING FROM THIS? AND I THINK MAYBE THE ANSWER IS THIS IS JUST A MINDSET, A METHOD OF DOING THINGS TO CONTINUALLY LOOK AT DIFFERENT PROJECTS THAT MAY NOT BE THE FCI REBID NEXT YEAR BUT MAY BE A DIFFERENT PROJECT.
BUT WHICH ONES WILL CONTINUE ON AND GIVE US SAVINGS IN THE
WHEN YOU LOOK AT SOME OF THE POSITION ABSORPTIONS, THAT'S GOING TO BE REOCCURRING IN TERMS OF SAVINGS YEAR ON YEAR ON. THE TELECOM, THOSE LINES HAVE BEEN ELIMINATED.
THAT'S A YEAR ON, YEAR ON SAVINGS.
THE COPY MACHINE AND PRINTER CONTRACT YEAR ON YEAR SAVINGS.
THERE WAS A SIGNIFICANT INCREASE IN OUR FINANCIAL SOFTWARE. IN ALL SERIOUSNESS, WE SPENT TWO MONTHS NEGOTIATING THAT ONE DOWN. I WOULDN'T CALL THAT REOCCURRING.
BUT HAD WE NOT DONE THAT IT ÷÷WOULD HAVE BEEN REOCCURRING. AND SO, YOU KNOW, EACH ONE HAS ITS OWN NUANCE, I WOULD SAY. BUS DRIVER ELIMINATION, THAT'S A SAVINGS YEAR OVER YEAR. EACH ONE HAS ITS OWN LITTLE NUANCE. THERE'S NO DOUBT A SIGNIFICANT AMOUNT OF WORK BEING DONE IN THIS SPACE.
>> THANK YOU AGAIN. THANKS TO EVERYBODY.
AND LIKE YOU SAID, ALL THE PEOPLE DOWN THE LINE, ALL THE WAY DOWN TO THE LOGAN WHO IS OUT THERE GIVING US A TOUR AT FISHERS ELEMENTARY. I MEAN, AS WE'RE WALKING THROUGH TALKING WITH THE ARCHITECT ABOUT, HEY, COULD WE DO THIS DIFFERENTLY? COULD WE MOVE THIS DOOR OVER HERE.
WHAT WOULD THAT SAVE? SO IT'S -- IT'S UNBELIEVABLE, LIKE I SAID EARLIER, THE THING IS NEVER CONSIDERED BEFORE I WAS IN THIS SEAT IN RUNNING A -- WE HAVE 23 BUILDINGS? I THINK SO.
>> YEAH. >> 23 BUILDINGS, $325 MILLION BUDGET TO FIND, YOU KNOW, $170,000 IS DIFFICULT.
>> SO, A PERFECT SEGUE INTO WHERE WE'RE GOING NOW.
AGAIN, WE'RE GOING TO SEE SOME CHALLENGES RELATED TO SENATE BILL 1 THAT I WANT TO TALK ABOUT HERE KIND OF TO CLOSE TODAY. AND I WOULD REITERATE WHAT I COMMENTED ON EARLIER IN TERMS OF THE DAILY COLLABORATION AND COMMUNICATION FROM OUR TEAM WITH MR. MAPES AND REALLY THOSE KEY PEOPLE IN OUR BUILDINGS.
WHAT WE CAN DO TO WEATHER THIS INCOMING CHALLENGE.
[01:20:01]
AND I THINK WE'RE POSITIONED TO DO THAT AS WELL AS ANYBODY.SO NOW WE'RE REALLY GOING TO GET IN THE WEEDS OF SENATE BILL 1. MS. THOMAS, MS. LAN SAID IN A PRESENTATION VERY SIMILAR TO THIS A MONTH AGO AT BARNES AND THORNBERG, A GREAT SERVICE THEY PROVIDED TO US, BUT I WANT TO TRY TO GIVE JUST A LITTLE BIT OF BACKGROUND AND HOPE TO NOT GET IN THE WEEDS TOO MUCH. BUT, THE BACKGROUND HERE IS THIS, EVERY HOME, OUR OWN HOMES, HAVE A GROSS ASSESSED VALUE THAT OUR HOME IS VALUED AT.
AND THERE'S A VARIETY OF DEDUCTIONS THAT COME INTO PLAY THAT GET TO A NET ASSESSED VALUE. AND THE NET ASSESSED VALUE IS WHAT WE PAY IN TERMS -- IS WHAT -- THE RATE IS MULTIPLIED BY AND DETERMINED WHAT WE PAY IN PROPERTY TAXES. AND WHY THIS IS IMPORTANT IS BECAUSE AS A PART OF SENATE BILL 1, WHAT YOU SEE HERE IS THE STANDARD DEDUCTION, DECREASING OVER TIME BUT MORE IMPORTANTLY THE SUPPLEMENTAL DEDUCTION INCREASING.
MEANING THE NET OVERALL DROPS. I'M GOING TO GIVE YOU A NUMBER THAT KIND OF LEVEL SETS THIS JUST A LITTLE BIT.
CURRENTLY IN 2025, THE MEDIAN HOME VALUE IN OUR SCHOOL DISTRICT IS $375,300. THAT'S THE MEDIAN HOME VALUE.
GROSS. IN 2025, THE FIRST THING TO DETERMINE THE NET VALUE IS TO TAKE OFF $48,000 AND THEN 37.5%. AND THAT GETS THAT HOME TO A NET VALUE OF $204,000, PLUS A LITTLE BIT MORE, BUT FOR ROUND ING NUMBERS.
WITH THIS LEGISLATION, WITHOUT A GROWTH IN AV, THAT'S A BIG ASSUMPTION THAT WOULDN'T HAPPEN ON THAT HOME.
OUR HOME WILL CONTINUE TO GROW ON A GROSS AV, BUT FOR MY ILLUSTRATION HERE, AS YOU LOOK AT THESE SUPPLEMENTAL DEDUCTIONS INCREASING THAT NET VALUE OF 204,000 ON THE SAME HOME WOULD HAVE A NET VALUE OF 125,000 IN 2031.
SAID DIFFERENTLY, THESE DEDUCTIONS ARE SO SIGNIFICANT THAT THEY WILL CUT OR TAKE AWAY MUCH MORE FROM THE GROSS AV TO THE END RESULT OF THE NET AV.
WHICH IS ULTIMATELY GOING TO HAVE A BIG IMPACT ON OUR OVERALL DISTRICT'S NET AV. BUT BEFORE WE DO, THERE'S ONE OTHER LITTLE FUN CAVEAT TO THIS NEW BILL WHICH SAYS, HEY, AFTER ALL YOUR TAXES ARE PAID, AFTER THE CIRCUIT BREAKER, MOST HOMEOWNERS ARE GOING TO GET A MINUS $300 OFF THEIR BILL. AT THE END WHEN IT'S ALL SAID AND DONE. AND $300 IS A LOT OF MONEY.
PROBABLY TWO TRIPS TO THE GROCERY STORE RIGHT NOW, MAYBE ONE IF YOU'RE A BIG FAMILY.
BUT THE IMPACT TO THE DISTRICT IS GOING TO BE OVER -- I HAVE A SLIDE ON THIS OVER $4 MILLION FROM THAT SIMPLE $300 INDIVIDUAL MINUS OR DEDUCTION. SO, ANOTHER SORT OF ANGLE TO THE IMPACT THIS NEW BILL IS GOING TO HAVE ON THE DISTRICT. I'LL COME BACK TO A SPECIAL SLIDE ON THAT IN A MINUTE.
THIS IS PROBABLY ONE OF THE MOST IMPORTANT LAST TWO SLIDES THAT WE'RE GOING TO TALK ABOUT. THE OTHER IS GOING TO BE RELATED TO OUR REFERENDUM. I LOOKED AT THIS SO MUCH, IT'S EASY FOR ME.
SEEING FOR THE FIRST TIME, LET ME EXPLAIN IT.
THE GREEN NUMBER IS THE OVERALL GROSS AV OF OUR SCHOOL DISTRICT. GROSS AV WILL CONTINUE TO GROW AT A PRETTY RAPID RATE. I DON'T KNOW IF IT WILL EVER LEVEL OUT WHO IS TO SAY THAT'S THE CASE.
BUT OUR HOME GROSS VALUES ARE GOING TO CONTINUE TO INCREASE. THE BLUE LINE IS WHAT THE DISTRICT'S NET AV WOULD HAVE BEEN PRIOR TO SENATE ENROLLED ACT 1. THE ORANGE IS WHAT THE PROJECTED NET AV WILL BE FOR OUR DISTRICT POST SENATE ENROLLED ACT 1. I HAVE TO GIVE CREDIT TO POLICY ANALYTICS. THIS WAS A GROUP WE ENGAGED IN THAT WAS ABLE TO TAKE PARCEL BY PARCEL DATA TO BE ABLE TO PRODUCE WHAT YOU SEE IN FRONT OF YOU.
SO, SIGNIFICANT AMOUNT OF WORK AND EXPERTISE THAT THEY BROUGHT TO THE TABLE.
>> SO AGAIN, LET ME STOP REAL QUICK.
THAT IS OUR DISTRICT'S SPECIFICALLY? THIS IS NOT AN AVERAGE OR THE
>> AND IT'S PROJECTIONS. SO IT'S ON HOME VALUES.
AND AS MR. BROWN SAID, IN THE GREEN LINE, REAL ESTATE WILL ALWAYS -- IT WILL ALWAYS -- ASSESSED VALUES WILL GO UP.
BUT CAN YOU CLARIFY JUST -- I HEARD IT A LITTLE BIT, BUT MAYBE AGAIN SHARE. RIGHT THERE AT 25 WHERE ORANGE AND BLUE MEET AND WHY THEY SPLIT, WHAT IS MAKING US GO DOWN SINCE OUR ASSESSED VALUES ARE GOING UP FOR THE LAYMEN INDIVIDUAL, WHAT IS BRINGING IT DOWN?
>> IT COMES BACK TO THIS CALCULATION. WE'RE TAKING MORE OFF.
THE DEDUCTION IS GREATER. WHEN THE DEDUCTION IS GREATER, EVERYBODY'S NET AV IS GOING TO DROP ALONG WITH THAT.
[01:25:01]
SO, YOU CAN SEE WHERE IN 2025, IT WAS AT 48,000 OFF THE TOP AS YOUR STANDARD DEDUCTION AND THEN 37.5.WELL, NOW ALL OF A SUDDEN IN '26 IT'S STILL THAT 48 BUT NOW WE'LL TAKE 40% OFF THE REMAINDER AND THEN COME AND TAKE 46%. BY THE END, TWO THIRDS OF THE VALUE OF YOUR HOME WILL BE SUBTRACTED TO GET TO YOUR NET AV.
>> AND THIS TAX FORMULA THAT THEY PUT IN PLACE FOR US WAS -- IF YOU'RE AN INDIVIDUAL LIVING IN A HOME IN OUR AREA, IS GIVING YOU A $300
COMPLETELY INDEPENDENT OF EACH OTHER. WHAT THIS IS DETERMINING YOUR NET AV WHICH WILL DETERMINE THE AMOUNT OF TAXES YOU PAY BASED ON THE RATE OF YOUR OVERLAPPING TAXES DISTRICT.
SO KEEP IN MIND, ALL OF US AS HOME OTHER THANES, WE'RE NOT JUST PAYING THE SCHOOL RATE.
>> WE'RE PAYING THE CITY, THE TOWN, ALL THE THINGS, RIGHT?
>> THIS IS THE CALCULATION DETERMINING HOW MUCH YOU WOULD PAY BASE ON THOSE RATES.
THE $300 IS OUTSIDE OF THAT. IT'S A WHOLE ANOTHER BUCKET.
SO WHEN ALL THE TAXES ARE DONE, AND YOU PAY YOUR TAXES OR THERE'S YOUR LINE ITEM, CONGRATULATIONS.
MINUS $300 AFTER IT'S ALL SAID AND
THAT. >> ONE WOULD SAY YOU'RE GETTING HIT FROM BOTH SIDES.
>> I WAS TRYING TO LOOK AT IT AS THE HOMEOWNER.
YOU'RE SAVING MONEY. BUT AS THE SCHOOL, WE'RE NOT.
>> SO, ANY PROPERTY TAX THAT YOU WOULD NOT PAY AS A HOMEOWNER IS GOING TO IMPACT ALL THOSE TAXING
UNITS. >> LIBRARY, POLICE, ITSELF.
>> SO, A SAVINGS TO THE HOMEOWNER WOULD BE AN IMPACT TO THOSE UNITS.
>> OKAY. HERE ARE THE SAME PEACES OF DATA, JUST WITH THE NUMBERS. SO, YOU CAN SEE PRESENATE BILL ONE WE HAVE A STEADY INCREASE IN OUR AV.
YOU JUST SEE IT CONTINUING TO GROW, CONTINUING TO GROW.
POST SENATE BILL 1, THERE'S THIS CERTIFIED AV. THERE YOU GET TO 26.
IT GROWS A LITTLE. HUH OH, '27, THERE'S THE DROP.
THERE'S THE DROP. THERE'S THE DROP.
AND WE CONTINUE UNTIL ALL THE NEW SEA 1 INITIATIVES ARE PUT IN PLACE AND THEN IT STARTS TO PICK BACK UP A LITTLE.
BUT NOTICE, IN '26, HERE IS OUR HIGH WATER MARK OF $12 BILLION. EVEN IN 2035 WE'RE NOT PROJECTED TO GET BACK TO THAT AV.
THAT CREATES SOME CHALLENGES. SO, BACK TO MY EARLIER SLIDE.
HISTORICALLY SCHOOL DISTRICTS FOR YEARS HAVE WORKED HARD TO KEEP A LEVEL TAX RATE.
IF YOU'RE TAX RATE STAYS LEVEL, BUT YOUR AV DROPS, YOU'RE GOING TO PRODUCE A MUCH SMALLER LEVY. SAID A DIFFERENT WAY, GOING TO THE SECOND FORMULA, WE JUST SAY, HEY, LET'S JUST KEEP THE LEF VI.
LET'S KEEP STATUS QUO ON THE LEVY, AV IS DROPPING.
WE'RE GOING TO HAVE TO INCREASE THE RATE IN ORDER TO JUST OBTAIN THE SAME AMOUNT OF DOLLARS, NOT AN INCREASE FOR INFLATION.
NOT AN INCREASE FOR COST OF LIVING. ALL THE THINGS. JUST TO SAY YOU KEEP THE SAME EXACT RATE. SAME EXACT LEVY.
SO WHAT I'M GOING TO PREPARE THE BOARD FOR, I GUESS, TODAY IS WHERE WE'VE ALWAYS WORKED HARD TO KEEP A LEVEL TAX RATE.
OUR PROCESS WILL NOW BE MUCH MORE ABOUT WHAT CAN WE DO TO KEEP A LEVEL LEVY. WHAT CAN WE EVEN JUST OBTAIN THE SAME AMOUNT OF FUND. AND IN ORDER TO DO THAT, THE FORMULA IS PRETTY SIMPLE, TO KEEP THE SAME MONEY AND YOUR AV DROPS, YOU'RE GOING TO HAVE TO RAISE THE RATE IN ORDER TO BE ABLE TO DO
THAT. >> WHAT'S OUR CURRENT RATE?
>> 1. 1433, THANK YOU SO MUCH.
>> IT'S BEEN THAT FOR THE LAST TWO YEARS.
THE YEARS PREVIOUS IT HAD DROPPED. KY GO BACK TO THAT SLIDE IN A MINUTE IF YOU LIKE.
>> I DO THINK WHEN WE COME TO PRESENT THE 2026 BUDGET, IT'S POSSIBLE THAT WE CAN MAINTAIN THE SAME LEVY, EXCUSE ME THE, SAME RATE. BASED ON THE FACT THAT WE'RE REALLY NOT DEVIATING MUCH FROM PRE- SEA 1 AND POST. MOVING TO '27 AND BEYOND, IT'S GOING TO BE VERY DIFFICULT NOT TO PROPOSE A HIGHER TAX RATE DUE TO THE IMPACT THAT YOU'RE SEEING TO THE NET AV OF THE ENTIRE COMMUNITY.
>> WOULD THIS BE -- TELL ME IF I'M WILDLY OFF BASE HERE.
I THINK I PROBABLY AM. I'M LOOKING AT JUST THE EDUCATION FUND, WHICH IS MOSTLY TEACHER BENEFITS AND SALARIES. AT $170 MILLION, TO KEEP THAT -- NOW, THAT'S ON STUDENT COUNT.
>> YEAH. SO DON'T THINK EDUCATION FUND WITH THIS CONVERSATION.
>> THIS IS NOT EDUCATION FUND. THIS WOULD GO OPERATIONS?
>> OPERATIONS, DEBT SERVICE, MOST IMPORTANTLY OPERATING REFERENDUM.
>> PERFECT KICKOFF. I'LL COME BACK TO EDUCATION IN A SECOND.
>> YOU'RE GOING TO GO OVER IF THERE'S IMPACT TO THE EDUCATION
OKAY. >> SO HERE IS OUR OPERATING REFERENDUM. OF ALL THE SLIDES I SHOWED YOU TODAY, THIS IS THE ONE THAT GIVES ME THE MOST HEARTBURN. AND THE REASON BEING IS
[01:30:03]
WE SHOWED EARLIER ABOUT $3 MILLION INCREASE IN OUR LEVY. THE DOLLARS THAT CAME IN FROM '24 TO '25. THERE WAS TWO REASONS FOR THAT GROWTH. ONE WE ADDED THE PENNY.TWO, THE AV GREW. WELL, WHEN THE AV DOES NOT GROW OR DROPS MORE IMPORTANTLY, THIS IS THE IMPACT ON OUR OPERATIONS -- EXCUSE ME, OUR OPERATING REFERENDUM. SO THE DASH LINE IS PRE- SEA 1.
SO, THE PROJECTION OF WHERE WE THOUGHT THE REFERENDUM DOLLARS -- WHAT LEVY WE WOULD OBTAIN.
THE SOLID LINE IS WHAT WE BELIEVE THROUGH POLICY ANALYTICS WILL HAPPEN AFTER. WHAT I WOULD POINT OUT IS IN '26, WE SEE A NICE STILL GROWTH WITH THE LEVY THAT WE'RE ABLE TO PULL. BUT IN '27, WE'RE LOSING MONEY FROM THE PREVIOUS YEAR.
BY '28, WE'RE LESS THAN WE ARE RIGHT NOW.
REMEMBER, THIS IS THE SAFETY NET FOR BEING ABLE TO FUND TEACHER SALARIES, WAGES AND BENEFIT. WE START LOSING REVENUE THIS FUND WITH THE EXPENSES THAT ARE ALREADY THERE, THERE'S ONLY ONE OTHER PLACE TO GET THAT AND THAT'S IN THE EDUCATION FUND AND THERE ARE CHALLENGES WITH THAT. THE IDEA OF DOLLARS LOST, I MEAN, MY GOODNESS, IF WE WOULD HAVE JUST STAYED ON THE TRACK THAT WE WERE ON, WE WOULD HAVE BEEN PROJECTED TO BE AT $34. 7 MILLION AND IN 203 IS THAT NUMBER IS NOW PROJECTED TO BE 23.7. THAT'S SCARY.
TO BE QUITE HONEST. AND IT'S NOT ALL DOOM AND GLOOM. BUT THIS SLIDE IS A LITTLE BIT.
>> SO WE AREN'T POSSIBLY THE ONLY SCHOOL DISTRICT EXPERIENCING THIS.
>> WITHOUT A DOUBT. WE'RE ALL IN IT TOGETHER.
>> EXACTLY. SO WHAT KIND OF PRESSURE IS BEING PUT UPON THE STATE LEGISLATURE TO CHANGE THIS MODEL BECAUSE IT'S OBVIOUSLY HAVING AN IMPACT FINANCIALLY STATEWIDE?
>> I KNOW THAT'S A LOADED QUESTION FOR YOU.
THAT'S NOT YOUR WHEELHOUSE. BUT AS YOU TALK AMONGST OTHER CFOS, YOU KNOW, COUNTY WIDE, STATEWIDE, WHAT IS THE
CONVERSATION? >> EVERYBODY IS ASKING FOR CHANGE. CITIES, TOWNS, SCHOOLS. THIS WAS PASSED WITHOUT REALLY KNOWING THE FISCAL IMPACT TO ALL THOSE ENTITIES.
YES, IT GAVE SOME PROPERTY TAX RELIEF AND WILL HAVE PROPERTY TAX RELIEF, BUT THE COST OF SERVICES TO COMMUNITIES. SO EACH ONE OF THOSE GROUPS, PROFESSIONAL ORGANIZATIONS ARE CURRENTLY TRYING TO TALK WITH LEGISLATURES AND SAY, HEY, THIS NEEDS TO GET FIXED BEFORE IT GOES FULLY IMPLEMENTED BECAUSE IT'S GOING TO BE DEVASTATING.
SO, I MEAN, THERE IS EFFORTS OUT THERE AND CONVERSATIONS GOING ON ABOUT THE FULL IMPACT OF THIS AS WE GET READY TO DO A '26 BUDGET. AND JUST WHAT TIM JUST SHOWED YOU. IT'S LIGHT PAIN THE FIRST TIME AND THEN IT GETS REALLY, REALLY HARD.
>> I THINK WHAT I KEEP COMING BACK TO, WE HAVE SIMILAR QUESTIONS OF WHY DOES THE BUDGET GROW EVERY YEAR. WELL, ALL OUR EXPENSES GROW EVERY YEAR. AND THAT'S WITH REALLY NOT ADDING ANYTHING NEW. THIS IS FORGET ABOUT ADDING A CTE CENTER OR ANYTHING. IF WE OFFER THE SAME EXACT STAFFING, SAME BUILDING, SAME NUMBER OF US, WE DID EVERYTHING THE SAME, OUR COSTS ARE GOING TO GO UP WITH INFLATION.
>> EVERYBODY IN THIS -- IN OUR ORGANIZATION EXPECTS A RAISE EVERY YEAR. WE WANT TO BE ABLE TO GIVE THAT TO THEM. THAT'S A HUGE PART OF OUR BUDGET.
BUT THEN THERE'S GAS, ELECTRICITY, INSURANCE, INSURANCE IS GOING UP 15, 20%.
YOU KNOW, THAT'S MILLIONS OF DOLLARS.
SO JUST TO DO EXACTLY WHAT WE'RE DOING WITHOUT INCREASING ANY SERVICE AND NOT ADDING ANYTHING AGAIN, PEOPLE USE EXAMPLES OF WE'RE NOT BUILDING NEW SWIMMING POOLS OR TENNIS COURTS. WE JUST DO EXACTLY WHAT WE'RE DOING, THAT'S GOING TO INCREASE ALONG WITH INFLATION EVERY YEAR. ON TOP OF THAT, WE DO WANT TO DO NEW THINGS AND IMPROVE AND GET NEW CARPET IN PLACES AND DO DIFFERENT THINGS, ADD A CTE CENTER. SO, IT DOES BECOME IMPACTFUL.
>> I'M SO SORRY. I THINK THE REASON THIS ONE FEELS THE MOST IS BECAUSE THIS IS STAFF.
RIGHT? THIS IS PAYING THE PEOPLE THAT DO THE WORK EVERY SINGLE DAY THAT ARE SO CRITICAL TO THE SUCCESS OF OUR SCHOOL DISTRICT.
SO SEEING THIS AS A FLAT LINE SLASH DROP IS CONCERNING.
>> AS WELL AS CLASS SIZE AND SECURITY. I MEAN, THE PLAN WAS AS THE REFERENDUM DOLLARS WOULD GO UP, THAT WE WOULD HAVE MORE DOLLARS TO MAINTAIN CLASS SIZES AND PAY TEACHERS AND ALSO CONTINUE TO BE ABLE TO ADD SECURITY ISSUES IN OUR BUILDINGS WHERE WE DON'T HAVE FULL- TIME SROS.
SO, IT'S IMPACTING IN BOTH THOSE
AREAS. >> WILL OUR SUPPORT STAFF ALSO COME OUT OF THIS FUND OR EDUCATION FUND?
[01:35:01]
>> YOU KNOW, AT THE END OF THE DAY --
>> THEY'RE PAID OUT OF THE EDUCATION FUND.
>> AT THE END OF THE DAY, HERE IS EDUCATION DOLLARS.
HERE IS REFERENDUM DOLLARS THAT ARE SUPPORTING THE CLASSROOM, THEY GO TOGETHER. IF THERE'S AN IMPACT TO THE REFERENDUM, WHAT PICKS UP THE SLACK, EDUCATION.
WELL IT'S NOT NECESSARILY GROWING EITHER.
WE'LL TALK ABOUT THAT IN A SLIDE HERE IN THE FUTURE.
BUT, I THINK GOING BACK TO THE EARLIER SLIDE, WHERE WE LOOKED AT OUR TUITION SUPPORT DOLLARS BEING $2. 7 MILLION AND WE SUPPORTED OUR TEACHERS WITH A $2. 8 MILLION INCREASE, THE REFERENDUM ALLOWED THAT.
IF YOU TAKE A DROP IN THE REFERENDUM, ALL OF A SUDDEN THAT NUMBER OF EDUCATION, HOW MUCH NEW MONEY WE'RE GETTING BECOMES EXPONENTIALLY IMPORTANT AT THAT
TIME. >> AND THIS IS PROJECTIONS, JUST ON OUR PROPERTY TAXES AND OUR PROPERTY --
AS GOOD OF PROJECTION AS WE COULD GET.
EVERY YEAR WE GO OUT, THE PROJECTION GETS LESS AND LESS ACCURATE OBVIOUSLY, BUT IT'S AS GOOD OF PROJECTION THERE IS.
>> THIS IS EXCLUSIVELY THAT $300 I'LL CALL IT BONUS THAT GETS SUBTRACTED FROM YOUR TAX BILL. AT THE END OF ALL CALCULATIONS.
YOU GOT TWO GRAPHS HERE, THE FIRST ON THE LEFT IS IF WE MAINTAIN THE SAME LEVY IN DEBT SERVICE THAT WE HAVE IN 2025, CONTINUE THAT ON KNOWING THAT THE RATE WOULD HAVE TO INCREASE. THE GRAPH ON THE RIGHT KEEPS THE RATE -- THE AMOUNT OF MONEY THAT WE PULL FROM THE RATE AND PER TENDS THAT SECTION A 1 DIDN'T HAPPEN AND THE RATE CONTINUES TO GROW TO PULL THE SAME LEVY THAT WE WOULD HAVE PULL BEFORE NATCH DETAIL IS NOT AS IMPORTANT AS REALLY WHAT'S ON THE GRAPH.
WHAT'S ON THE GRAPH IS THETHE IMPACT THAT $300 HAS TO OUR LEVY AMOUNTS. THE BLUE GRAPHS REPRESENT THE OPERATIONS FUND. THE ORANGE BAR REPRESENTS DEBT SERVICE. ONE LITTLE CAVEAT TO THIS LEGISLATION THAT I HONESTLY THINK WAS A MISTAKE, IS THEY DID NOT PROTECT DEBT SERVICE.
WHEN IT COMES TO TAX CREDITS AND CIRCUIT BREAKER, DEBT SERVICE HAS ALWAYS BEEN PROTREKTED. MEANING THEY DON'T TAKE IT OFF DEBT SERVICE BECAUSE YOU HAVE TO PAY THE DEBT THAT YOU ALREADY ESTABLISHED.
WITH THIS LEGISLATION, THEY'RE ALLOWING DEBT SERVICE CASH BALANCES TO BE HIT. WHETHER THAT STAYS IN THE FUTURE IS YET TO BE DETERMINED. WHAT IS IMPORTANT THIS GRAPH IS THAT $300 BONUS IS ABOUT A $4. 2 MILLION COST TO THE SCHOOL DISTRICT FOR EVERY INDIVIDUAL TAXPAYER GETTING THAT. SO, ON TOP OF THE HIT TO THE OPERATING REFERENDUM AND THE NET AV THAT IMPACTS OPERATIONS, THIS IS ANOTHER SORT OF ADDITIONAL BONUS, IF YOU WILL, AND NOT A GOOD ONE IN THAT THAT WOULD COME OFF THE TOP AND IMPACT THE SCHOOL DISTRICT.
NOW, WHAT I WILL SAY IS DUE TO THESE DEDUCTIONS OUR OVERALL CIRCUIT BREAKER ISN'T GOING TO BE AS SIGNIFICANT MAYBE AS IT HAS BEEN IN THE PAST.
INCORPORATING THESE NUMBERS, CIRCUIT BREAKER, MONEY THAT WE'RE PROJECTED TO GET THAT WE DON'T GET IS ABOUT $4. 7 MILLION IN 2025.
MOST OF IT IN THE OPERATIONS FUND BECAUSE DEBT SERVICE IS PROTECTED.
IN 2026, WITH THE GRAPH ON THE LEFT, IT WOULD BE ABOUT 6. 5 MILLION. ALL SAID AND DONE, IT'S ANOTHER IMPACT TO THE PROCESS. ANOTHER IMPACT TO THE SCHOOL DISTRICT'S OVERALL LEVY PULL IN ADDITION TO EVERYTHING THAT WE'VE PREVIOUSLY TALKED ABOUT.
THERE'S A LOT OF DATA THERE. PROBABLY A WHOLE PRESENTATION IN ITSELF. BUT $300 TO AN INDIVIDUAL, ALTHOUGH VERY VALUABLE, HAS A $4. 2 MILLION IMPACT TO THE SCHOOL DISTRICT.
NOW LET'S SHIFT GEARS BACK TO WHAT MR. ORR SAID TO KIND OF CONCLUDE. SO LET'S TALK TUITION SUPPORT NOW. SO, TUITION SUPPORT AGAIN IS THAT -- ARE THE DOLLARS CONNECTED TO THE NUMBER OF STUDENTS ENROLLED IN THE SCHOOL DISTRICT. THE BLUE SECTION ON THE LEFTLEFT OUR TOTAL TUITION SUPPORT FOR THE '24/'25 YEAR.
WE'VE SHOWN THAT NUMBER AT 160 MILLION BEFORE.
I DID BREAK IT DOWN INTO THE BASIC GRANT AND THE SUPPLEMENTAL GRANTS.
SUPPLEMENTAL GRANTS ARE SPECIAL EDUCATION, CAREER AND TECH ED.
ENGLISH LANGUAGE LEARNS AND ACADEMIC PERFORMANCE.
[01:40:01]
THOSE GRANTS FLUCTUATE QUITE A BIT.I WANT TO BE CAUTIOUS WE FOCUS ON BOTH NUMBERS HERE.
IT LOOKS LIKE IT'S MUCH GREATER THAN IT IS.
I BACKED OUT THAT 158 ROUGHLY DOLLARS PER STUDENT IN THESE CALCULATIONS. SO, OUR ENROLLMENT AVERAGE BETWEEN OCTOBER AND FEBRUARY'S COUNTS WAS A LITTLE OVER 20,000 STUDENTS.
IT'S THE AVERAGE OF THE TWO. IF WE TAKE OUR DEMOGRAPHER-PREDICTED NUMBER OF 20,648 WHICH WOULD BE A DROP OF 59 STUDENTS, OUR BASIC GRANT WOULD GO UP ABOUT $2 MILLION.
USING LSA, THAT'S THE LEGISLATIVE SERVICES AGENCY THAT DOES THE FISCAL WORK FOR THE LEGISLATURES IN INDIANAPOLIS MIRANDA WARNINGS . YOU SEE THE STATEMENT AT THE BOTTOM, SUB GRANTS ARE ESTIMATES ONLY BASED ON LSA.
I REALLY WANT TO BE TAKE 65% OF THAT. GO OVER TO THE SECOND COLUMN, LSA, THEY PREDICT WE WOULD BE DOWN 194 STUDENTS.
HAVING SAID THAT, OUR BASIC BRANCH WOULD MOVE TO 1.2 MILLION IN AN INCREASE, AND IN SOME GRANTS, FACTORING THOSE IN WOULD BE 2.2. I WENT AHEAD AND TRIED TO PAINT ANOTHER PICTURE, SO WE SEE THE CONTINUUM OF OPTIONS, BECAUSE REMEMBER, WE ARE GRADUATING 1700 STUDENTS, PROJECTING TO BRING IN 1100-ISH.
THAT IS A BIG GAP. YES, WE SEE INCREASES IN OTHER GRADE LEVELS, BUT LET'S LOOK AT AN OPTION OF IF WE WERE DOWN 400 STUDENTS. IF WE WERE DOWN 400 STUDENTS, EVEN THOUGH, THERE IS AN INCREASE TO TUITION SUPPORT, WE WOULD SEE LESS THAN THE BASIC RATE OF 229,000, AND USING THE PROPORTIONATE AMOUNTS ON SOME GRANTS, WE WOULD SEE AN OVERALL INCREASE OF 25. I WANT TO BE VERY CAREFUL ABOUT THOSE SUB GRANTS. I WON'T SAY IT AGAIN.
THOSE ARE PREDICTIONS BASED ON THEIR NUMBERS. I'M NOT READY TO HANG MY HAT ON THAT. THE TUITION SUPPORT NUMBERS ARE ACCURATE, I FEEL, BASED ON THOSE ACCOUNTS. YOU PUT THIS TOGETHER, WITH WHAT THE REFERENDUM IS GOING TO DO, NOT IN 2026, BUT IN 2027. WE HAVE TO BE PREPARING FOR THIS, AND WE ARE. WE ARE GOING TO BE VERY CONSERVATIVE IN WHAT RECOMMENDATIONS WE HAVE RELATED TO EXPENSES AND INCREASES IN THIS SPACE, KNOWING THAT THE SMALL WAVE IS COMING IN 2027, AND THE BIG WAVES ARE COMING BEHIND IT WITHOUT ANY CHANGES. THERE IS A LOT TO DIGEST THERE.
ANY QUESTIONS? >> TALK MORE ON THE REFERENDUM, THE RECENT LEGISLATION, AND HAVING TO HOLD OFF FOR A YEAR, VERSUS WHEN YOU HAVE TO THEN GO OUT.
>> YEAH, BECAUSE IT IS AN OPERATING REFERENDUM, I'M GOING TO DOUBT MY TOES INTO LEGAL, AND WALK ALONG THE OUTSIDE OF THE POOL. I DO NOT THINK THAT IS AN IMPACT TO US. WHAT WOULD BE AN IMPACT US WHEN WE GO TO RENEW THAT, WE WOULD HAVE TO GO EARLIER, BECAUSE WE HAVE TO GET ON THE EVEN YEAR , GENERAL ELECTIONS, RIGHT? WE ARE REVERSING THAT IN THE MEETING ROOM, SITTING AT BARNES AND THORNBURG, AND IN 2030, IS WHAT WE TALKED ABOUT, TO HAVE TO START GOING OUT FOR A REFERENDUM AT THAT POINT. THAT IN ITSELF GETS COMPLICATED, BECAUSE WHERE WE ESTABLISH A MAXIMUM RATE, 1995, KNOWING AV IS GOING TO CONTINUE TO DROP, WE HAVE TO HAVE CONVERSATIONS ABOUT A MAXIMUM LEVY, VERSUS A MAXIMUM RATE IN THAT SPACE, AND BUILDUP.
BUILD UP A LITTLE CONFIDENCE IN OUR COMMUNITY TO SAY, WE ARE GOING TO ASK FOR THIS RATE NOW, BECAUSE WE KNOW THAT AV IS GOING TO DROP. WE'VE GOT TO PROTECT OURSELVES FOR A YEAR SEVEN OF THESE, TO BE ABLE TO NOT GET IN A POSITION WHERE WE SEE A
DECREASE IN REVENUE THERE. >> FOR CLARIFICATION ON SOME OF THIS, BECAUSE YOU WILL HEAR THE NAYSAYERS SAYING, OH, I'M NOT GOING TO DO ANOTHER REFERENDUM. THERE IS NO WAY. WHY DON'T YOU GUYS MAKE CUTS? YOU GUYS SPEND WAY TOO MUCH MONEY. THAT'S WHY WE ARE GOING THROUGH ALL OF THIS. IF WE ARE TO LOOK AT OUR DISTRICT AS A WHOLE, WHETHER IT IS OPERATIONS OR EDUCATION OR SALARIES AND COMPENSATION, CAN YOU TALK A LITTLE BIT ABOUT WHAT WE DO, WHETHER IT IS QUARTERLY, OR EVERY MONTH , THAT WE ARE LOOKING AT OUR SPENDING, AND HOW WE CAN CONTINUE. I DON'T WANT
[01:45:04]
TO USE THE WORD, CUTS, BUT ME, I OWN MY OWN BUSINESS, A SMALL BUSINESS. I'M CONSTANTLY LOOKING AT MARKETING AND ADVERTISING, AND HOW I CAN DO LESS IN MY SPENDING, OR HOW I'M GOING TO USE CERTAIN SERVICES. I KNOW EDUCATION RUNS A LITTLE BIT DIFFERENT, THAT THEY DON'T ALWAYS DO THAT, BUT IT IS STILL A BUSINESS. IT'S STILL A BIG CORPORATION. CAN YOU TALK ABOUT WHAT AN EVERYDAY LOOKS LIKE, THAT WE ARE STILL TRYING TO MAKE CUTS IN CERTAIN AREAS. IT'S NOT JUST ABOUT GETTING MORE MONEYAND MAKING A BIGGER BUDGET. >> I WOULD LEAD BY SAYING, YOU DON'T GET THE TITLE, BEAN COUNTER, IF YOU'RE NOT COUNTING THEM EVERY SINGLE DAY, AND WE REALLY ARE. EVERY DECISION WE MAKE, COLLECTIVELY, IS, WHAT IMPACT THIS IS GOING TO HAVE? WE ARE ALWAYS DRIVEN BY THE FACT OF, WHAT IS BEST FOR STUDENTS? HELPING STUDENTS IN THE CLASSROOM TO CONTINUE TO HAVE THE AMAZING SUCCESS WE HAVE. BALANCING THAT, VERSUS COST.
I'M NOT SAYING -- WHEN TEACHING AND LEARNING IS TALKING ABOUT DOING SOMETHING NEW, WE ARE HAVING CONVERSATIONS, SAYING, WHAT CAN WE DO ABOUT THIS? IS THERE A SPACE THAT MAKES SENSE, FINANCIALLY? IS THERE A SPACE THAT DOESN'T? SOMETIMES WE COME TO A COLLECTIVE, NO, THIS ISN'T GOING TO WORK. MORE OFTEN THAN NOT, WE FIND A WAY. FROM A MONTHLY STANDPOINT, THAT IS THE JOB I LIVE ON A WEEKLY, DAILY BASIS, WE ARE MONITORING WHERE THE FINANCIALS FALL. WE SHARE THEM WITH MR. MAYS, AND HE HAS SEEN THEM ON A MONTHLY BASIS. WE ARE HAVING CONVERSATIONS ABOUT WHERE THIS ALL FALLS. TO SAY THAT IT IS CONSTANT WOULD NOT BE
AN OVER EXAGGERATION. >> AND, IT IS THAT COST OF VERSION SIDE. THAT IS THE BONES OF WHAT HAPPENS EVERY DAY HERE THAT GETS US SAVINGS. IT MAY NOT TURN INTO CASH BALANCES, BUT IT IS EXPENSES THAT WE DON'T HAVE, BECAUSE WE HAVE NEGOTIATED SOMETHING BETTER, OR WE REFUNDED A BOND, OR THE OTHER THING WE ARE TRYING TO PROTECT OUR ACADEMIC PROGRAMS. IF THIS GETS TOUGH, ALL OF A SUDDEN, WE WILL HAVE TO LOOK AT ACADEMIC PROGRAMMING AND SAY, WE ARE NOT GOING TO OFFER THAT ANYMORE, BECAUSE WE CAN'T LIVE WITHIN OUR BUDGET AND CONTINUE TO HAVE SOME LUXURIES OF COURSES THAT WE OFFER OUR STUDENTS AT HAMILTON SOUTHEASTERN SCHOOLS, AND THAT WILL HAPPEN ACROSS THE STATE TO EVERY SCHOOL CORPORATION AS THIS GETS IMPLEMENTED, AND THAT'S THE PART THAT SCARES US. WE HAVE REALLY GREAT OFFERINGS, AND WE PREPARE OUR STUDENTS TO BE ABLE TO GO ANYWHERE THEY WANT TO GO ONCE THEY GRADUATE FROM HERE. THOSE EXPERIENCES MIGHT DRY UP, BECAUSE WE WON'T HAVE FUNDING TO SUPPORT THEM.
>> YOU DID PUT A SLIDE UP HERE WITH THOSE, WHICH I GREATLY APPRECIATE, BUT NOT, RIGHT HERE. IN MY Q&A, WHICH I EMAILED TO YOU AND YOUR STAFF, I WOULD LIKE TO SAY THANKS FOR THAT BIG LIST.
MAYBE YOU GIVE THAT TO IT WAS A $5 MILLION IN SAVINGS? WAS AT $25 MILLION IN SAVINGS?
>> IT WAS ABOUT $11 MILLION IN COST DIVERSION.
>> I KNOW IT WAS TALKED ABOUT A LITTLE BIT, BUT KNOWING, WHAT IS REPEATABLE SAVINGS, AND WHAT IS ONE TIME SAVINGS? MAYBE WE CAN TOUCH ON THAT AND I WILL EMAIL FOR AN UPDATE ON THAT TOO. YOU EVEN SAID, WHEN I HAD QUESTIONS ABOUT ADMINISTRATION, AND SOME OF THE CHANGES WE WERE DOING, YOU WERE RESPECTFUL AND SAID, WE WORKED ON THAT. WE CAME UP WITH THE FUNDS. WE HAD SAVINGS IN OUR DISTRICT. I DON'T REMEMBER WHAT YOU SAID, 17 OR SOME ODD MILLION DOLLARS THAT WE HAD SAVINGS, THAT WE CAN AFFORD THESE CHANGES IN ADMINISTRATION. THOUGH, THAT IS A GREAT NUMBER, I WOULD LIKE TO BE ABLE TO SEE, ARE THOSE SUSTAINABLE NUMBERS, ONE-TIME NUMBERS, OR SOMETHING THAT IS NOT GOING TO REPEAT EVERY YEAR?
>> LIKE WE TALKED ABOUT, SOME ARE LITTLE BIT OF BOTH. ONE THAT IS NOT ON THERE THAT WOULD GET THE NUMBER WELL ABOVE 17, IS THE TAXABLE BOND. I DON'T CALL THAT A SAVINGS. THAT WAS AN INFLUX TO OUR OPERATIONS FUND. WE MADE THE DECISION LAST YEAR WITH YOUR SUPPORT TO GO OUT FOR A TAXABLE BOND TO PAY FOR THE PREVIOUS BUS EXPENSES, AND WHAT THAT DID IS IT PROVIDED A BOOST TO THE OPERATIONS FUND. THERE IS NO DOUBT IT IS WHERE IT'S AT TODAY BECAUSE OF THAT DECISION. I LEFT THAT OFF THERE, BUT THAT IS A BOOST OF 6+ MILLION DOLLARS TO THE OPERATIONS FUND.
>> THAT BRINGS ME TO SOME OTHER THINGS. YOU MIGHT STILL BE TALKING ABOUT IT, BUT WE HAVE TITLE I. IF WE USED ALL OF OUR FUNDS AND STUFF, IS THERE ANYTHING LEFT OVER? I KNOW WE HAVE THINGS THAT REPEAT, RIGHT? DOES THAT NUMBER GO UP AND DOWN?
>> OBVIOUSLY, OUR TEAM IS WORKING FOR VARIOUS GRANTS AND SUPPORTS, MENTAL HEALTH. WE DO SOME WORK WITH OUR INSTRUCTIONAL COACHES. WE ARE CONSTANTLY IN THAT SPACE , BUT THERE IS NO MAGIC COFFER THAT LIVES IN OUR OFFICE, THAT WE PULL WHEN WE NEED IT. WE JUST EVALUATE EVERY DECISION CRITICALLY. NOW, I WILL
[01:50:05]
SAY, TO CONCLUDE, BEFORE THE LAST SLIDE, AS CHALLENGING AS THIS IS, THERE IS NO BETTER PLACE -- AND THIS IS NOT CLICHE, THERE IS NO BETTER PLACE TO BE THAN RIGHT HERE. WE ARE POSITIONED, AS MUCH AS ANYONE CAN POSSIBLY BE, TO TAKE THIS WAVE COMING FOR US, AND WE HAVE THE RIGHT PEOPLE IN COMMUNICATION WITH US ON A DAILY BASIS TO SEE WHAT WE NEED TO DO TO MAKE IT WORK. IT IS THE HAND WE ARE DEALT, AND WE ARE GOINGTO MAKE IT WORK. >> WE COULD STAY HERE ALL NIGHT WITH A LOT OF THIS, AND WE HAVE ALMOST COME UPON TWO HOURS THAT WE HAVE WARD HIM OUT. I WOULD LIKE TO CONCLUDE, AND ONCE AGAIN, WE DO WANT TO PREPARE AN FAQ, AND WANT THOSE EMAIL QUESTIONS TO COME IN, SO WE CAN CREATE THAT DOCUMENT. SOME OF THE THINGS WE HAVE TALKED ABOUT HERE WILL BE ON THAT DOCUMENT, LET ALONE, THE QUESTIONS YOU STILL HAVE. THAT WAY, IT WILL BE A WHOLE DOCUMENT THAT CAN BE OUT THERE FOR THE BOARD, AS WELL AS THE PUBLIC. I THINK IT IS VERY IMPORTANT, BUT ONCE AGAIN, A LOT OF THIS IS PROJECTIONS, UNTIL WE GET A CERTIFIED ASSESSED VALUATION FOR THE 2026 BUDGET. THEN, THINGS WILL BECOME MORE REAL AND WE WILL UPDATE. REST ASSURED, I THINK ONE OF THE THINGS THIS SCHOOL DISTRICT HAS FOR IT RIGHT NOW, THAT NOBODY ELSE DOES -- NOBODY HAS THREE SUPERINTENDENTS SITTING IN THEIR CENTRAL OFFICE WITH EXPERIENCE OF DOING BUDGETS, FINDING COST SAVINGS, AND RUNNING A SCHOOL DISTRICT. AND, I HAVE HAD MY COLLEAGUES TELL ME THAT. THEY ARE LIKE, WOW! YOU PUT TOGETHER A TEAM THAT I WISH I HAD. THAT IS REALLY IMPORTANT RIGHT NOW, AND THAT IS WHY WE ARE BETTER POSITIONED THAN MOST PEOPLE IN THE STATE OF INDIANA, BECAUSE WE HAVE REALLY GOOD PEOPLE THAT KNOW HOW TO DO THIS WORK AND RUN SCHOOLS AS BUSINESSES.
>> SIMPLE QUESTION, IF I CAN PLEASE GO AHEAD AND GET THESE TWO OUT. YOU MIGHT HAVE ALREADY SAID IT. I DON'T THINK I WROTE IT DOWN. IT IS, WHAT IS THE TOTAL PERCENT OF OUR DEBT SERVICE IN OUR CURRENT BUDGET RIGHT NOW? WHAT WAS THAT NUMBER?
>> THERE IS OUR 2025 BUDGET BROKEN DOWN BY VARIOUS DEBT
SERVICES. >> THANK YOU. THE LAST QUESTION IS, WE WORKED HARD TO HAVE A MENTAL HEALTH GRANT THAT IS PHENOMENAL FOR OUR DISTRICT, AND PEOPLE ARE DOING GREAT THINGS.
IT WAS LAID OUT TO US BY YEARS, AND I JUST WANTED TO SEE, ARE WE ON TRACK WITH THOSE POSITIONS THAT WE ARE FILLING? AT THIS POINT, WE ARE SUPPOSED TO HAVE ALL OF OUR SUPPORT STAFF TO COVER ALL OF OUR ELEMENTARIES, AND I THINK IT IS SIX SOCIAL WORKER POSITIONS FROM THE GRANT TO COVER ALL OF OUR ELEMENTARY SCHOOLS AT THIS TIME. I WANTED TO FOLLOW-UP. ARE WE ON TRACK
WITH THOSE ITEMS? >> WE WORK WITH MOLLY ON A REGULAR BASIS. THAT IS PROBABLY A WHOLE PRESENTATION IN AND OF
ITSELF IT >> I JUST WANT TO TAKE A COUPLE SECONDS AND SAY, THANK YOU ALL FOR MAKING THE SIMPLE FOR US, AND TAKING TIME OUT OF YOUR SCHEDULES, SO WE CAN BETTER UNDERSTAND WHERE WE ARE. I
* This transcript was compiled from uncorrected Closed Captioning.