[1. Meeting Opening] [00:00:16] ORDER. PLEASE RISE FOR THE PLEDGE. ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE [2. Information Items] REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. >> TIM BROWN, IT'S ALL YOURS. GOOD EVENING MR. MATES AND DISTINGUISHED GUESTS. WE'VE GOT A LOT TO TALK ABOUT AND DIVE IN AND GO THROUGH EACH OF THE ITEMS WE'RE GOING TO DISCUSS. IF THERE ARE QUESTIONS, ASK THEM ALONG THE WAY. WE'LL TRY TO KIM IT MOVING THE BEST THAT WE CAN. SO THE BUDGET PROCESS IS REALLY A YEARLONG PROCESS AS WE'RE CONSTANTLY EVALUATING AND LOOKING WHERE THINGS STAND IN THE BUDGET. IT REALLY GETS HOT AND HEAVY IN JUNE, JULY, AND AUGUST. BEFORE I DIVE IN TOO DEEP TODAY I ESPECIALLY WANT TO THANK OUR DIRECTOR SESALLY WITH ALL HER WORK ON THE BUDGET. ALSO MANY OF YOU KNOW MIKE, OUR CFO. HE'S HAD EYES FOR QUITE A WHILE AS WELL. I WANT TO PUBLICLY THANK THE TWO FOR THEIR WORK. I'M THE LUCKY ONE TO PRESENT IT, BUT THEIR WORK IS CERTAINLY A VALUABLE PROCESS. SO BACK ON THE 2ND WE MET WITH THE FINANCE COMMITTEE AND GAVE SOME INSIGHT WHERE WE THOUGHT THINGS WOULD LAND. WE'LL POST EVERYTHING AS WE'RE REQUIRED TO DO ON THE WEBSITE AND THROUGH DLGF, AND THEN WE'LL COME BACK ON THE NEXT BOARD MEETING WITH A GOAL OF ADOPTION ON OCTOBER 22ND. SO FOLLOWING ALL THE STATUTORY REQUIREMENTS TO MAKE THE BUDGET HAPPEN. JUST TO PAINT THE PICTURE FOR THE BUDGET ONE OF THE IMPORTANT THINGS WE NEED TO TALK ABOUT IS THE NET AV, AND THE NET AV IS THE TOTAL TAXABLE -- THAT COME OFF THAT GET TO THE NET VALUE THAT YOU SEE HERE. SO, AGAIN, THE LOWEST GROWTH THAT WE'VE SEEN IN EIGHT YEARS. THE OTHER KEY LEVER, IF YOU WILL, TO THE WHOLE BUDGET PROCESS IS THE NUMBER OF STUDENTS THAT WE HAVE ENROLLED IN OUR DISTRICT. BY WHICH WE ARE FUNDED. THE ONE COMING UP VERY SOON, OCTOBER 1ST, AND THE 2ND ON FEBRUARY 2ND AND THERE'S AN ADJUSTMENT AT THAT SECOND ONE. IF WE HAVE MORE STUDENTS, WE SEE AN INCREASE. SO A SNAPSHOT, REALLY THE DETAIL OF WHERE WE'VE BEEN IN TERMS OF OUR ENROLLMENT. THESE ARE FALL COUNT DAYS, SO THIS IS A COMPARISON OF SEPTEMBER COUNT DAYS A FEW YEARS AGO THAT HAVE NOW BEEN MOVED TO OCTOBER DATES. NOT SPRING COUNT DATES. AND THE COLUMN ON THE RIGHT PURPOSEFULLY IN BLUE ISIS WE'RE AS OF MONDAY. MOVES A COUPLE STUDENTS EACH WEEK, BUT THIS IS CURRENT. AND I WOULD DRAW YOUR ATTENTION TO THE INCREASE, DECREASE NUMBER IN '25, '26. [00:05:03] YOU SEE A DECREASE OF 385 STUDENTS. THAT IS OUR LARGEST DECREASE UNTIL YOU GO BACK TO THE 2021 SCHOOL YEAR. AND OBVIOUSLY BACK THEN EVEN BEFORE THERE WERE SOME INCREASES INVOLVED. >> CAN YOU SAY THAT AGAIN? >> YEAH, I THINK YOU SEE IT UP THERE. IN 2021 THE DECREASE WAS 408 STUDENTS WHEN YOU COMPARE IT TO THE 2019, 2020 SCHOOL YEAR. SO WHAT I'M LOOKING AT IS THIS LINE RIGHT HERE. THIS IS THE OVERALL INCREASE, DECREASE LINE. THIS LINE RIGHT THERE. SO THIS SHOWS THE MINUS 385 AS OF MONDAY. SO THE MOST WE HAVE LOST, WHICH IS CERTAINLY IMPACTFUL, THE OTHER THING WE OFTEN TALK ABOUT THAT I WOULD CALL YOUR ATTENTION TO THAT IS JUST THE NEW NORM FOR US IS KINDERGARTEN ENROLLMENT VERSUS SENIOR ENROLLMENT. IF YOU LOOK, AND WE'VE TALKED ABOUT THIS THROUGH OUR DEMOGRAPHER AND OTHER CONVERSATIONS, EACH COHORT FOR THE MOST PART SEES A LITTLE BIT OF AN INCREASE. IN FACT, OF THE 13 COHORTS UP HERE MEANING FIRST GRADERS THIS YEAR, SECOND GRADERS NEXT YEAR, THERE'S ONLY TWO OF THEM I BELIEVE YOU SEE A DROP IN. BUT THE GAINS ARE MINIMAL COMPARED TO THE EASY SUBSTRACTION, UNFORTUNATELY, OF NEARLY 1,800 SENIORS AND NEAR 1,200 KINDERGARTENNERS. EVEN IF YOU SEE LITTLE INCREASES THAT'S WHERE YOU SEE THE BULK OF YOUR DROP. HE PREDICTED US TO GO DOWN BY ABOUT 50, AND YOU SEE THERE WE WENT DOWN BY 385. STILL SUBJECT TO CHANGE TO THE OFFICIAL COUNT DAY, BUT THAT'S WHERE IT STANDS TODAY. >> CAN I ASK A QUICK QUESTION? >> SURE. >> DOES THAT INCLUDE THE NEW OPEN ENROLLMENT WITH STUDENTS COMING FROM OUT OF DISTRICT? >> YES, SO I'M GOING TO TALK ABOUT THAT ON A LATER SLIDE BUT NOW IS THE PERFECT TIME. OF HIS NUMBER THERE ARE 99 NEW TRANSFERS TO THE DISTRICT THAT ARE -- 79 OF THEM WOULDN'T HAVE BEEN ALLOWED TO ATTEND BEFORE. 20 OF THEM ARE EMPLOYEES KIDS THAT ARE NEW. 79 HAVE NO CONNECTION TO AN EMPLOYEE THAT WOULD HAVE ALLOWED THEM TO HAVE ATTENDED. AND I'LL TALK ABOUT THE FINANCIAL IMPACT OF THAT IN A MINUTE. SAME SLIDE, BUT NOW LET'S TALK ABOUT THE DOLLARS THAT GO WITH EACH DISTRICT. ACROSS THE BOTTOM THERE'S PER STUDENT. THERE'S ANOTHER FACTOR CALLED THE COMPLEXITY INDEX. THIS IS NOT PART OF THIS. THIS IS THE BASE AMOUNT PER STUDENT. SO THIS IS SAME AMOUNT PER STUDENT YOU GET IN MUNSEY AND TARAHOTE AND FISCHER. YOU GET TO 25 AND 26 AND WE KNOW THE INCREASE FOR NEXT YEAR, UNLESS THE BUDGET IS REOPENED. YOU SEE THE NUMBER RIGHT THERE A 4. 28 INCREASE AND THEN 4.9. THE PROBLEM WITH THAT FOR THE FIRST TIME THEY EMBEDDED CURRICULUM MATERIALS IN THAT. FOR HSE THAT'S ABOUT $1. 2 MILLION. SAID DIFFERENTLY ABOUT $58 PER STUDENT. SO THE REAL INCREASE IN TUITION SUPPORT IS OVER HERE ON THE RIGHT WHERE I BACKED OUT CURRICULAR MATERIALS, AND THAT IS A VERY APPROPRIATE AND COMMON PRACTICE AND ACTUALLY NOT -- IT'S THE EXPECTATION IS WHAT I WOULD SAY WHEN IT COMES TO LOOKING AT THE REAL INCREASE. SO WE SAW 1. 92% INCREASE, AND WE KNOW NEXT YEAR IT'S GOING TO BE 1.53. THAT INCREASE IS GREAT IF THE ENROLLMENT STAYS AN INCREASE IN FUNDS FOR SURE. IF YOUR ENROLLMENT DROPS WITH THAT, THEREIN LIES THE CHALLENGE. AND WE'LL TALK ABOUT THE FINANCE BEHIND IT IN JUST A MOMENT. PROVIDING A LITTLE BIT OF BACKGROUND, JUST A LITTLE BIT OF BUDGETING 101, WE'RE GOING TO TALK A LOT TONIGHT ABOUT TAX RATE. THAT IS THE PERCENTAGE USED TO DETERMINE HOW MUCH PROPERTY A TAXPAYER WILL PAY PER $100 OF AV, THAT NET AV AMOUNT WE TALKED ABOUT EARLIER. THE TEX LEVY, THAT'S THE ACTUAL DOLLAR AMOUNT YOU GET IN. SO A TAX RATE MIGHT BE 1.14, A $1.14, AND THE LEVY MIGHT BE $20 MILLION. IT'S THE TOTAL AMOUNT VERSUS THE TAX LEVY ITSELF. AND THE WAY THESE FORMULAS WORK -- YOU SEE THEM AT THE BOTTOM. TO DETERMINE THE LEVY YOU TAKE THE AV MULTIPLIED BY 100 TO FIND THE RATE. JUST A BIT OF ILLUSTRATION HERE TO TALK ABOUT HOW AV IS IMPACTFUL. [00:10:01] WHAT YOU SEE ON OUR TOP VERSION IS THE ACTUAL DEBT SERVICE -- EXCUSE ME, THE ACTUAL OPERATIONS TAX RATE IN 2025, THAT 0.353. OUR FIRST PUT PLIER IS TAKING THIS YEAR'S -- EXCUSE ME, THAT YEAR'S NET AV. SO THE 2025 NET ASSESSED VALUE VERSUS THE OPERATIONS RATE IN 2025 THAT PRODUCES A LEVY OF ALMOST $41 MILLION. WHEN THE AV GOES UP LIKE IT IS THIS YEAR, AGAIN, NOT AS MUCH AS IT HAS IN THE LAST EIGHT YEARS, WHEN YOU TAKE THAT EXACT SAME RATE WHAT YOU EXPECT IS AN INCREASE IN THE LEVY. THAT'S BEEN COMMON PRACTICE FOR A WHILE IN GROWING COMMUNITIES. THE CHALLENGE IS GOING TO BE A PREVIEW TO A SLIDE COMING UP, WHEN AV DROPS, IT'S GOING TO TAKE A HIGHER RATE. WHOOPS. IT'S GOING TO TAKE A HIGHER RATE TO EVEN PULL THE SAME EXACT LEVY DUE TO THE AV GOING DOWN, AND I'LL TALK MORE ABOUT THAT IN A MINUTE. NOW THE BOTTOM EXAMPLE. SO LET'S SAY WE JUST WANT TO MAINTAIN THE SAME LEVY. SO THERE'S THAT SAME OPERATIONS LEVY THAT WE HAD IN 2025. IF YOU TAKE 2025'S AV IT TOOK A TAX RATE OF 0. 3553 TO OBTAIN THAT. THIS YEAR IF YOU TAKE THE SAME LEVY IT WOULD TAKE A SLIGHTLY LOWER TAX RATE. AGAIN, A PREVIEW. IF THIS AV DROPS LIKE IT'S GOING TO IN 2027, IT'LL TAKE THE EXACT TAX RATE JUST TO PULL THE EXACT DOLLAR AMOUNT THAN WE DID LAST YEAR. >> CAN WE DO A BIT OF LAYMAN'S TERMS FOR A SECOND? SO BASICALLY THE ASSESSED VALUE AND WE HAVE TAX -- WE HAVE THE TAX RATE. YOU'RE SAYING BECAUSE OF THE AMOUNT OF STUDENTS WE HAVE AND WE'LL BE BRINGING IN THOSE FUNDS BECAUSE THE TAX RATE CHANGED OR THE ASSESSED VALUES CHANGED? >> SO LET'S TALK ABOUT THIS IN TWO DIFFERENT BUCKETS. >> THANK YOU. >> LET'S TALK ABOUT THE STUDENT BUCKET THAT HAS NOTHING TO DO WITH PROPERTY TAXES. SO THAT IS EDUCATION FUND DOLLARS. THAT LIVES IN THIS BUCKET OVER HERE. >> CORRECT. >> THE BUCKET THAT IS TIED TO TAX RATES ARE GOING TO BE OUR OPERATIONS, OUR DEBT SERVICE AND OUR REF ERENDUM, AND THAT HAS NOTHING TO DO WITH THE NUMBER OF STUDENTS ATTENDING. SO TWO DIFFERENT BUCKETS, TWO DIFFERENT REVENUE SOURCES, TWO DIFFERENT STRATEGIES TO OBTAIN FUNDS. >> OKAY. >> SO LET'S TALK ABOUT THAT. PERFECT SEGUE, THANK YOU. THE EDUCATION FUND IS THAT FUND THAT IS BASED ON ESSENTIALLY THE NUMBER OF STUDENTS THAT WE HAVE ENROLLED IN OUR DISTRICT. THERE ARE SOME SUPPLEMENTARY GRANTS THAT GO ALONG WITH THAT WITH SPECIAL EDUCATION STUDENTS, ACADEMIC ACHIEVEMENT, ENGLISH LANGUAGE LEARNERS AND TECH ED, BUT THE NUMBER OF STUDENTS IS FUNDED BY STUDENTS IN YOUR CORPORATION. THAT IS USED TO PAY FOR TEACHERS, INSTRUCTIONAL SUPPORT, BUILDINGS, SUPPLIES, TECHNOLOGY, THINGS OF THAT NATURE. THE OPERATIONS BUCKET WHICH IS THAT PROPERTY TAX BUCKET, THAT'S USED TO BROADLY PAY FOR NONCLASSROOM EXPENDITURES. SO YOU THINK ABOUT CUSTODIAL, MAINTENANCE, TRANSPORTATION, ANYTHING NOT DIRECTLY TIED TO THE CLASSROOM. CENTRAL OFFICE, PROPERTY AND CASUALTY INSURANCE, ANYTHING NOT DIRECTLY TIED TO THE CLASSROOM. AND THAT IS FUNDED THROUGH LOCAL PROPERTY TAX. EACH YEAR UNDER CURRENT LEGISLATION WE ARE HELD TO A MAXIMUM AMOUNT. WE TALKED ABOUT IT LAST YEAR, THE MAXIMUM LEVY GROWTH QUOTIENT AND THAT NUMBER FOR HSE THIS YEAR IS A LITTLE OVER $42 MILLION IN THE OPERATIONS FUND. THEN WE HAVE A REFERENDUM FUND, WHICH WE CHANGED THE RATE TWO YEARS AGO, AND THAT IS EXCLUSIVELY NOW USED FOR TEACHER SALARIES AND BENEFITS. THERE'S A VERY SMALL PORTION THAT PAYS FOR SECURITY. A MAJORITY OF IF NOT WAYS FOR TEACHES SALARIES AND BENEFITS. WE ARE HELD TO THE MAXIMUM LEVY THAT WAS APPROVED BY THE VOTERS -- EXCUSE ME, THE MAXIMUM RATE APPROVED BY THE VOTERS 0.115. AND DESPITE WHAT AV MAY DO WE CAN NEVER WITHOUT AN ADJUSTMENT TO THE REFERENDUM CHANGE THAT RATE. THE OTHER FUNDS WE'LL TALK ABOUT TODAY IN NOT QUITE AS DETAIL ON IS NET SERVICE. THIS EXPLAINS ITSELF. THIS IS THE FUND THAT PAYS FOR THE DEBT TO RENOVATE BUILDINGS, TO KEEP UP OPERATIONS OF A LOT OF THINGS THROUGH OUR GO BONDS, THE THINGS WE'RE DOING RIGHT NOW AT FISCHER ELEMENTARY AND HIJ. MOST OF THOSE THINGS ARE COMING OUT OF DEBT SERVICE. WE HAVE TWO THINGS RIGHT THERE WHICH MEANS A DEBT WAS APPROVED THROUGH A REFERENDUM AND THEN WE HAVE A TRADITIONAL DEBT SERVICE WHICH WE TYPICALLY THINK ABOUT WITH OUR GO BONDS. RAINY DAY FUND IS JUST THAT. IT IS THAT EMERGENCY THE DAM BROKE BUCKET, IF YOU WILL, THAT WE GO PULL IF WE NEED [00:15:04] ANYTHING IN TERMS OF AN ABSOLUTE EMERGENCY. WE HAVE NOT USED THAT FUND. THERE'S NO REVENUE FOR A RAINY DAY. THAT HAS TO BE A TRANSFER FOR MANY FUNDS. SO WE HAVE NOT PUT MONEY IN THAT FOR MANY YEARS, NOR HAVE WE PULLED FROM THAT, THANK GOODNESS. IT DOES SERVE AS A BIT OF INTERNAL CASH FLOW FOR US. WE WILL TRANSFER MONEY TO HELP PAY FOR THOSE PROPERTY TAX FUNDS BECAUSE WE DON'T GET THOSE MONTHLY AND AT THE END OF THE YEAR WE PUT IT BACK FOR A RAINY DAY. OUR SELF- INSURANCE DENTAL FUND, THIS IS ONLY REVENUE PAID BY PREMIUMS BY BOTH EMPLOYEES AND THE DISTRICT AND CLAIMS WE HAVE AGAINST THAT GET PAID OUT OF THE DENTAL FUND. >> AND MAY I ASK, IF WE USE FUNDS FOR SOME REASON OUT OF THE DEBT SERVICE OR RAINY DAY FUND, HAVE ANY IMPACT ON LET'S SAY OUR -- THAT WE USE IF WE DEPLETE FUNDS FROM THOSE? >> YEAH, WITHOUT A DOUBT HAVING ANY KIND OF BALANCE IN RAINY DAY IS IMPORTANT, AND SO A RATING AGENCY WOULD ABSOLUTELY LOOK AND SAY, YOU KNOW, WHAT HAPPENS IN AN EMERGENCY? THERE ARE NO FUNDS IN RAINY DAY. THE FUTURE DEBT AND OUR ABILITY TO PAY THAT OBVIOUSLY IS -- BUT I WOULD SAY ZERO OR A RAINY DAY BALANCE WOULD BE IMPACTFUL. >> AND CURRENTLY WE ARE AT A STELLAR RATING, CORRECT? >> WE ARE. I THINK WE'RE ONE OF FOUR OR FIVE SCHOOLS THAT HAVE THE HIGHEST RATING IN THE STATE OF INDIANA. >> THANK YOU. >> SO LET'S TALK A LITTLE BIT ABOUT THE IMPACT OF SEA1. SO IT HITS US A COUPLE DIFFERENT -- VERY IMPACTFUL FOR THE BUDGETING PROCESS. LESS IMPORTANT ABOUT THAN ACTUAL NUMBERS BECAUSE THESE ARE VERY FLUID, MORE IMPORTANT ABOUT THE CONCEPT, AND THIS IS WHAT I WAS TALKING ABOUT EARLIER. THE GREEN LINE YOU SEE IS THE THE ASSESSED OF ANY DEDUCTIONS FOR ALL THE PROPERTY. >> THE NEXT CHALLENGE IS THAT NEW HOMESTEAD TAX SUPPLEMENTAL CREDIT. MOST PEOPLE IN OUR DISTRICT WILL -- AT THE END OF THEIR TAX BILL. CERTAINLY IMPACTFUL. BUT WHAT DOES IT DO TO OUR -- TYPICALLY A CIRCUIT BREAKER [00:20:11] OR FOR THE MOST PART DOESN'T -- SERVICE. SO WHETHER IT WAS ON PURPOSE OR NOT, THEY DID NOT. >> THE SOLID LINE IS SHOWING WHAT HAPPENS WITH THESE NEW DROPS IN AV. SO STARTING IN '27 WE'RE GOING TO TAKE IN LESS MONEY EVERY YEAR ALL THE WAY OUT TO ABOUT 2032 BEFORE WE EVEN GET BACK, REALLY 2033 TO THIS YEAR'S NUMBER THAT'S A LOSS OF ABOUT $2.2 MILLION EVERY YEAR FROM WHAT WE WOULD HAVE EXPECTED. 2.2 HERE AND 2.2 DOUBLE HERE AND 2.2 TRIPLED HERE AND YOU CAN SEE THAT FALL ALL THE WAY THROUGH. SO A FUND THAT FUNDS FIVE SCHOOLS TEACHERS, SALARIES, AND BENEFITS, THREE ELEMENTARIES, AN INTERMEDIATE, AND A HIGH SCHOOL STARTING IN '27 IS GOING TO TAKE LESS MONEY IN EVERY SINGLE YEAR, AND THERE'S NO OTHER PLACE TO GET THAT MONEY. WE'RE OBVIOUSLY DOING WORK TO GUARD THE EDUCATION FUND AND WE'RE STILL SPENDING DOWN CASH BALANCES, AND NOW WE'RE TAKING A FUND AND WE'RE GOING TO START RECEIVING LESS AND LESS MONEY EVERY YEAR. >> I'M GOING TO STOP YOU THERE, TIM. SO WHEN YOU APPROVED YOUR REFERENDUM TWO OR THREE YEARS AGO, YOU HAD TO PUT IN A SPENDING PLAN. THAT WAS BASED ON THAT HARSH MARK LINE, THAT WE KNEW WE WOULD BE GETTING THOSE DOLLARS, AND THAT'S THE REASON YOU PUT A RATE AT 0.1195 BECAUSE IT WOULD BE ADEQUATE TO FUND EVERYTHING WE WANTED TO DO THROUGH THAT PROCESS. NOW IT'S GOING TO THE OTHER WAY WE'RE GOING TO WORK TO MAKE A RECOMMENDATION FOR THE BOARD TO GO OUT FOR REFERENDUM IN 2026. WE CANNOT WAIT, AND NOW THEY'VE CHANGED THE LAW, YOU CAN ONLY DO A REFERENDUM ON A GENERAL ELECTION YEAR, IT'S EITHER '26, '28, OR '30. THE LOSS THAT WE HAVE, WE CANNOT CONTINUE HAVING ENOUGH MONEY TO ACTUALLY OPERATE THE SCHOOL DISTRICT. SO WE THOUGHT THAT WE WOULD BE OKAY TWO MONTHS AGO. BUT AS THIS AV HAS COME IN AND WE THEN SAW ANOTHER CUT THAT HAPPENED BECAUSE THEY DIDN'T APPLY SEA1 CORRECTLY THIS IS A SITUATION NOT JUST SOUTHEASTERN HAMILTON IS IN BUT SCHOOL DISTRICTS ALL OVER THE COUNTY AS WELL. SO WE JUST WANTED TO SAY THAT OUT LOUD TONIGHT BECAUSE WE'RE STARTING TO WORK ON THIS PROCESS. AS YOU KNOW, IT IS A LONG PROCESS. BUT THE DIFFERENCE IS WITH A FIXED RATE YOU SAW WHAT WE WERE GOING TO GET BECAUSE THE AV WAS GOING TO GO UP. NOW WE'RE GOING TO HAVE TO ASKA FOR A HIGHER RATE, BUT WE WILL NOT USE THAT HIGHEST LEVEL OF RATE UNTIL THE LAST YEAR OF THE REFERENDUM. SO FOR JUST NUMBERS AGAIN WE MAY ASK FOR 40 CENTS BUT THE FIRST YEAR ONLY NEED 22 AND THEN THE NEXT YEAR ONLY NEED 25. BUT BECAUSE THE AV KEEPS GOING THE WRONG DIRECTION, WE HAVE TO BE ABLE TO GENERATE ENOUGH DOLLARS TO FUND EVERYTHING THAT WE HAD PLANNED USING REFERENDUM DOLLARS. SO THAT WILL BE A BIG EDUCATION PIECE FOR EVERYONE BECAUSE IT'S NO LONGER JUST A FIXED TAX RATE. >> AND REFERENDUM IS SOMETHING WE CAN CONTROL AND WORK WITH TO -- OBVIOUSLY IT HAS TO BE APPROVED. BUT IT'S SOMETHING WE AS A BOARD AND ADMINISTRATION HAVE TO WORK ON PROJECTIONS GOING FORWARD, IF YOU WILL, CORRECT? BECAUSE WE CAN'T CONTROL THE ASSESSED VALUES. WE CAN'T CONTROL BUTTS IN SEATS. WE CAN DO ALL THE GREAT THINGS THAT MAKES OUR SCHOOL DISTRICTS AMAZING THAT MAKE PEOPLE COME [00:25:02] HERE BUT WE CAN'T CONTROL THAT PART. REFERENDUM WE CAN, CORRECT? >> WE CAN PROJECT -- WE CAN PROJECT OUR SPENDING PLAN. >> CORRECT. >> AND JUST LIKE MR. BROWN SAID THE LAST TIME IT WAS 96% OR SO FOR TEACHER SALARIES AND BENEFITS AND 4% FOR SAFETY, YOU STILL HAVE TO OUTLINE WHAT YOU'RE GOING TO USE THOSE DOLLARS FOR AND HOW MANY DOLLARS YOU'RE GOING TO BRING IN EACH YEAR. >> AND FOLLOW UP WITH THAT, I KNOW IT'S EASY TO SAY WOULD HAVE, COULD HAVE, SHOULD HAVE, BUT WE DIDN'T HAVE THIS INFORMATION WHEN THE BOARD AND THE ADMINISTRATION WORKED TO COME UP WITH THAT PLAN AND HAVE THOSE SAVINGS. >> THE WHOLE LAW'S CHANGED. >> RIGHT. THAT'S WHAT I'M TRYING TO MAKE IT POINT AND CLEAR THAT THOSE WERE NUMBERS THAT WERE MADE BECAUSE WE FELT WE WERE GOING TO HIT THOSE POINTS TO MAKE SAVINGS FOR THE DISTRICT AND AT THE SAME TIME BE ABLE TO -- BE ABLE TO BUDGET FOR THE DISTRICT. >> CORRECT. >> I JUST ALSO WANT TO CLARIFY OUR ADD. EVEN IF THE BOARD APPROVES THE REFERENDUM IT DOESN'T MEAN THAT THE VOTER AT ELECTION TIME IS GOING TO APPROVE OR ALLOW IT TO PASS, SO WE STILL NEED TO PLAN FOR THE PENDULUM TO GO EITHER WAY, CORRECT? >> YES, ABSOLUTELY. >> THANK YOU. >> AND JUST ONE FINAL COMMENT ON THAT IS THE WHOLE IDEA IS JUST TO SLOW THIS CURVE DOWN AND JUST TRY TO GET WHERE WE WOULD HAVE BEEN. AND UNDER THE NEW SORT OF HAND WE WERE DEALT. >> DO WE KNOW IF WE PUT A REFERENDUM ON THE BALLOT, IF IT WERE TO NOT PASS, DOES IT NEGATE THE EXISTING REFERENDUM? >> IT WOULD BE WRITTEN IN A WAY THAT WOULD NOT TAKE PLACE. >> OKAY, SO IF IT WERE ON THE BALLOT IT WOULD BE IN THEORY A REPLACEMENT OR AN ADDITION TO, BUT IF IT DID NOT PASS IT WOULD REVERT TO THE 0.1995? >> THAT IS CORRECT. >> AND GO THROUGH 2031? >> THAT IS CORRECT. >> THANK YOU. >> TO THAT POINT JUST ONE OTHER COMMENT IF THAT HAPPENED AND YOU WANTED TO RE-UP YOUR REFERENDUM, YOU'D HAVE TO RUN IT IN 2030 BECAUSE YOU'VE GOT TO STAY ON THE EVEN YEARS NOW UNDER CURRENT LEGISLATION. >> THANK YOU. >> SO LET'S GET TO THE BUDGET STORY. IF I DIDN'T PARTICIPATE THE JURY ENOUGH OF A PICTURE, LET'S GO A BIT MORE. SO I TOLD YOU A MINUTE AGO ABOUT THE ENROLLMENT THAT WAS IN PLACED. SO BASED ON THE DROP IN STUDENTS THE ESTIMATED TUITION SUPPORT NUMBER FOR THE 25, 26 YEAR BASED ON MONDAY'S ENROLLMENT IS MINUS $162,000, AND THAT IS BASED ON THE 9.2% FUNDING INCREASE WITH THE CURRICULUM MATERIALWISE THE DROP IN THE NUMBER OF STUDENTS. IMPORTANT TO MR. ORR'S POINT EARLIER, IF WE HAD NOT TAKEN IN THOSE 79 NEW TRANSFER STUDENTS THAT ARE NOT ELIGIBLE WITHOUT THE NEW POLICY THAT WAS PASSED BY THE BOARD, THAT NUMBER WOULD HAVE BEEN AN ADDITIONAL $550,000 IN THE RED. NOT 550, AN ADDITIONAL 550 INTO THE RED FOR 79 TRANSFERS THAT ARE NOT CONNECT TODAY A STAFF MEMBER. >> CAN I INTERRUPT AND ASK ONE QUESTION? WAS 79 OUR CAP? I CAN'T RECALL, WE COULD HAVE ACCEPTED ANOTHER 79? >> THERE WERE ROOMS IN OTHER SCHOOLS. IT WAS JUST BASED ON OUR PROCESS OF WHAT WE TOOK IN AND THE CRITERIA ESTABLISHED, OF COURSE. IN TERMS OF STAFFING, OVERALL STAFFING POSITIONS REMAIN RELATIVELY NEUTRAL IN TERMS OF COSTS FOR THE YEAR. THERE WERE SOME GROUPS THAT THERE WAS SOME SAVINGS, SOME GROUPS A LITTLE MORE EXPENSIVE. OVERALL THOSE REMAIN PRETTY NEUTRAL. ONE OF THE OTHER CHALLENGES IS OUR MEDICAL INSURANCE PREMIUMS, OUR BENEFIT TRUST IS CONTINUING TO COST A LOT OF MONEY JUST TO BE DIRECT, AND SO WE HAVE ALREADY WORKED THROUGH OUR BENEFITS COMMITTEE AND I APPRECIATE THE WORK OF OUR TEAM ON THAT COMMITTEE BECAUSE THOSE WERE SOME VERY DIFFICULT DECISIONS TO RAISE PLAN 1'S COST BY 10.1% AND RAISE 2 AND 3 -- THOSE OUR HIGH DEDUCTIBLE PLANS -- 6.8%. NO DOUBT THIS IS GOING TO CREATE BOTH AN INCREASE IN DISTRICT AND EMPLOYEE CONTRIBUTIONS. THERE ARE A LOT OF REASONS AND FACTORS THAT GO INTO THIS. WE CAN REALLY GET INTO THE WEEDS, BUT I DO THINK IT'S WORTHY OF NOTE THAT PRIOR TO THIS YEAR THE BENEFIT TRUST WENT THREE YEARS WITHOUT TAKING ANY KIND OF PREMIUM INCREASE, AND SO THAT'S ONE OF THE CHALLENGES, AND THERE ARE SEVERAL OTHERS THAT ARE FACTORING INTO THE INCREASE IN MEDICAL PREMIUMS FOR OUR SELF-INSURANCE FUND. >> ON A BROAD QUESTION -- A BROAD QUESTION, CAN YOU SAY WHERE WE ARE COMPARED TO OTHER SCHOOL DISTRICTS AS WHAT WE OFFER AS FAR AS POSITIVE AND AVERAGE? >> LET ME CLARIFY YOUR QUESTION. ARE YOU TALKING ABOUT THE DEDUCTIBLE, THE OUT-OF-POCKET, THE PREMIUM COSTS -- >> ALL OF THE ABOVE. >> ALL OF THE ABOVE. THAT'S PROBABLY A PRESENTATION IN AND AMONGST ITSELF. I DO THINK OUR BENEFITS ALIGN WELL WITH MANY SCHOOL DISTRICTS' BENEFITS. THERE ARE ASPECTS OF OUR [00:30:02] BENEFITS PACKAGE THAT ARE MORE RICH THAN OTHERS. THERE ARE ASPECTS OF OUR PLAN THAT YOU MIGHT FIND ANOTHER SCHOOL IS MAYBE A LITTLE BIT BETTER IN ONE OR TWO AREAS, BUT I WOULD SAY A GENERAL OVERVIEW WOULD BE THAT WE HAVE VERY POSITIVE BENEFIT OFFERINGS FOR OUR STAFF IN THE HEALTH SPACE. AND OBVIOUSLY THERE ARE CHALLENGES THAT GO ALONG WITH THAT, BUT IF WE TOOK A SNAPSHOT, WE'RE A PRETTY GOOD COMPARISON. I WOULD GO ONE STEP FURTHER AND SAY IF WE STEPPED OUT OF THE EDUCATION FIELDS AND COMPARED TO THE BUSINESS WORLD, YOU WOULD FIND OUR BENEFITS TO BE EXTREMELY VALUABLE ANTEIC DOTALLY JUST TALKING TO BUSINESS OWNERS AND FOLKS OF THAT NATURE. >> THANK YOU. >> TIM, CAN YOU ALSO TELL US IN THE PREMIUM INCREASES HOW MUCH OF THAT IS ABSORBED BY THE DISTRICT AND HOW MUCH IS ABSORBED BY THE EMPLOYEES? >> YEAH, THAT'S A GREAT QUESTION. THAT IS A COLLECTIVE BARGAINING PROCESS, AND SO ONCE THAT IS DETERMINED, WE WOULD COME BACK TO THE BOARD AND MAKE A RECOMMENDATION ON WHAT THE CONTRIBUTIONS WOULD BE PART OF THE COLLECTIVE BARGAINING PROCESS. AND THEN NONCOLLECTIVE BARGAINING FOLKS, WHAT WOULD WE RECOMMEND AS AN INCREASE. AND IT WOULD COME BACK TO YOU FOR A VOTE AT THAT POINT. >> THANKS. >> CONTINUING WITH THE BUDGET STORY, SOME THINGS THAT ARE GOING TO IMPACT THE EDUCATION FUND AND REALLY ALL FUNDS BUT IN PARTICULAR THE EDUCATION FUND, IN 2026 WE ARE PART OF A MENTAL HEALTH GRANT THAT WE'VE HAD FOR A NUMBER OF YEARS. WE'RE GETTING READY TO START YEAR FOUR OF THAT GRANT. PART OF THAT GRANT MAKES SOME OF THOSE POSITIONS ROLL BACK TO THE EDUCATION FUND AND NOT BE GRANT FUNDED. SO WE HAVE PREDICTED ABOUT NINE TOTAL POSITIONS THAT ARE COMBINED SOCIAL WORKERS AND COUNSELORS THAT WILL MOVAL FROM THE MENTAL HEALTH GRABT TO THE HSE BUDGET IN THE EDUCATION FUND, SO OBVIOUSLY THERE'S A FINANCIAL IMPACT TO THAT. ONE OF OUR REAL SUCCESSES AS WE CONTINUE TO HAVE AMAZING ACADEMIC PROGRESS AND GROWTH IS THE WORK OF OUR LITERACY COACHES. THROUGH A INITIATIVE THROUGH THE STATE OF INDIANA WE WERE PART OF THE LITERACY CADRE THAT PAID -- AS THOSE COACHES MOVE OFF THE CADRE THOSE EXPENSES FALL BACK TO US. SO THAT'S A LITTLE OVER 4EN00,000 IN THE '25, '26 SCHOOL YEAR. UNFORTUNATELY, THAT IS ONE TIME MONEY AS THAT GOES AWAY QUICKLY AND DROPS IN '27 AND FUTURE YEARS PENDING ANY KIND OF MOVEMENT IN THE IDEA OF RUNNING A REFERENDUM. THAT CAN CERTAINLY SWITCH THAT CURVE PRETTY QUICKLY. ANOTHER SUCCESS THAT I WOULD BRING TO THE GROUP TODAY IS THAT OUR OPERATIONS BUDGET YOU'RE GOING TO SEE WHEN WE PRESENT THE FINAL BUDGET IN A MINUTE IS REDUCED BY A LITTLE OVER $2 MILLION, AND THAT'S DUE TO SOME SIGNIFICANT COST AVERSION STRATEGIES. OUR OPERATIONS TEAM HAS INVESTED SIGNIFICANTLY IN AREAS TO MAKE CUTS AND SAVE THE DISTRICT MONEY, AND WE ALSO CONTINUE TO MOVE SOME OF THOSE EXPENSES TO THE GO BONDS TO PROTECT THE OPERATIONS BUDGET, SO SOME POSITIVE MOVEMENT IN THERE FOR SURE. >> TIM? >> YEAH. >> WHAT IS THE COST OF THE POSITIONS THAT WILL BE -- >> YEAH, GOOD QUESTION. YOU KNOW, YOU THINK ABOUT ONE OF THE THINGS THAT'S DIFFICULT IN THAT'S AVERAGE STAFF MEMBER, RI, IF YOU TOOK THE STARTING SALARY OF $48,500, AND THAT PERSON HAS FAMILY INSURANCE, BY THE TIME YOU CALCULATE ALL THE BENEFITS THAT GO ALONG WITH IT YOU'RE EASILY AT $80,000 PLUS. WHEN YOU LOOK AT SOCIAL WORKERS AND COUNSELORS, THEY ARE PAID ON THE PROFESSIONAL AGREEMENT SCALE. SO IF I JUST STARTED AT THE BEGINNING AND SAID, GOSH, MAYBE JUST USE A ROUND NUMBER OF $100,000, SOME WILL BE MORE, SOME WILL BE LESS, NINE POSITIONS IS $900,000. AND THAT'S, YOU KNOW, A GROSS ESTIMATION, BUT I THINK IT'S APPROPRIATE TO SAY THAT BECAUSE EVERYTHING COMES ALONG WITH THAT. SALARY, BENEFITS, INSURANCE, ALL THE THINGS. >> AND I WAS IN A MEETING TODAY WITH REPRESENTATIVE BANNING, AND THE EXPECTATIONS IS ONCE THESE ARE IN PLACE THE SCHOOL DISTRICTS KEEP THEM IN PLACE BECAUSE THE LITERACY INITIATIVE IS NOT A ONE TIME THING, AND WE FOLLOWED UP THERE WOULD BE ANY FUNDING IN THE NEXT TO SUPPORT THAT, AND HE THOUGHT THERE WOULD BE A LINE ITEM TO SUPPORT IT BECAUSE OF THE SUCCESS OF IT. >> TO CLARIFY I DIDN'T ANSWER YOUR QUESTION CORRECTLY. I WAS REFERRING TO THE COUNSELORS AND SOCIAL WORKERS. I WANTED TO MAKE SURE. >> ARE WE LOOKING AT ANY GRANT WRITING STRATEGIES TO ABSORB SOME OF THIS COST FROM THERE? >> YEAH, PART OF THE REQUIREMENTS, AND I'M GOING TO GET INTO THE WEEDS FOR A SECOND -- THE DISTRICT HAS TO HAVE A PLAN TO ABSORB THAT. WE HAVE HAD THAT PLAN. THIS IS NOT A SHOCK TO US OR [00:35:02] ANYTHING LIKE THAT. THIS HAS BEEN BUILT INTO THE FINANCIAL PLAN FOR YEARS. TO SAY WE'RE ACTIVELY LOOKING AT ANY GRANT THAT MAKES SENSE TO US IS 100% TRUE. AND THERE'S NO DOUBT THE STUDENT SUPPORT THESE CRITICAL POSITIONS PROVIDE. BUT IF IT'S OUT THERE AND IT TAKES SENSE, WE'RE GOING AFTER IT, THERE'S NO DOUBT ABOUT THAT. >> AND I WASN'T JUST TALKING ABOUT OUR STAFFING POSITIONS. I'M TALKING ABOUT OUR FULL BUDGET STORY. ARE WE LOOKING AT EVERY GRANT THAT CAN HELP US ASSIST US WITH THESE LOSSES? >> EVERY BEAN COUNTS, AND THAT'S THE PHILOSOPHY WE LIVE BY IN THE FINANCE DEPARTMENT, THAT IF WE CAN FIND ITIT -- I SAY FINANCE DEPARTMENT BUT IT'S ALL -- IT'S TEACHING AND LEARNINGS, OPERATIONS, IT'S EVERYBODY. AND ABSOLUTELY WE'RE ALL DOING THAT. >> SO QUICK QUESTION, TOO. IN 2022 WHEN ALL THAT CAME TO US ONE OF THE BIG THINGS THAT SOME PEOPLE ON THE BOARD -- I'LL SPEAK ON MYSELF, WAS THE FINANCIAL PART OF THE MENTAL HEALTH GRANT, NOT THE MENTAL HEALTH GRANT IN ITSELF, JUST THE IMPACT IT WOULD MAKEOVER TIME AND THE UNCERTAINTY OF WHERE WE WOULD BE OVER THE YEAR'S PROGRESS. SO NO ONE COULD PREDICT THIS WAS GOING TO HAPPEN IN LEGISLATION TO AFFECT SOME OF THE THINGS AND WHERE WE WERE IN COST. SO MY QUESTION GOING BACK, UNFORTUNATELY, LIKE YOU WEREN'T HERE, MR. MAPES WASN'T HERE, BUT IN 2022 WE HAD AN OUTLOOK OF WHERE WE WOULD BE. DID ANY OF THOSE NUMBERS CHANGE OR GO UP, OR DO WE STILL HAVE THOSE SAME NUMBERS? I THINK ANYONE WHO WOULD KNOW WOULD BE DR. KEGLY. ARE THOSE NUMBERS STILL FLAT OF WHAT WE WERE PREDICTING OR HAVE THEY GONE UP? >> NUMBERS SPECIFICALLY REFERRING TO THE STAFF POSITIONS. >> CORRECT. BECAUSE EACH YEAR THERE WERE STAFF COMING ON. >> I HONESTLY DON'T KNOW BECAUSE WE ANNUALLY FACTOR STAFF POSITIONS. TO SAY EVERY DETAIL PREDICTING WHAT IT EXACTLY WAS GOING TO BE THE BEST THING I COULD SAY IT WAS 100% BUILT INTO OUR FINANCIAL PLAN, AND AS A RESULT WE KNEW THIS WAS COMING. AND I THINK WE WORKED HARD TOTO POINT AS CHALLENGING AS SOME OF THESE FINANCIAL DECISIONS ARE TO PROTECT SOME OF OUR MOST CRITICAL POSITIONS. >> IF YOU HAD GUESSTIMATED ABOUT $900,000 AND THEN THERE'S A LEFT ON THAT BEFORE IT'S FULLY ABSORBED, AT THE TIME WE PREDICTED IT WHEN IT WAS FULLY ABSORBED IT WAS GOING TO BE ABOUT $1.1 MILLION, SO THAT SOUNDS CLOSE. >> AND I ABSOLUTELY OFF THE TOP OF MY HEAD -- >> WHEN WE WENT THROUGH WE SAID ONCE FULLY ABSORBED THAT THING WOULD COST ABOUT $1.1 MILLION A YEAR. SO IF THERE'S A YEAR TO GO, THAT'S PROBABLY CLOSE, SO WE'RE SOMEWHAT ON TRACK. >> PROBABLY NOT TOO FAR OFF. >> BUT ALSO ON LATRICIA'S POINT TO THE QUESTION SHE HAD WHICH WAS GOOD, AND SHE BROUGHT IT UP, THE FACT EVEN THOUGH WE HAVE THAT PLAN AND BUDGET D FOR IT, WE DON'T KNOW IF THAT STAFF MEMBER HAD THEIR WHOLE FAMILY ON THE INSURANCE PLAN OR WHAT THE BENEFIT WAS TO THAT EXTENT. IT'S ALWAYS BEEN THERE, BUT WE DON'T KNOW -- >> THERE'S SOME TRANSITION THERE TO YOUR POINT, EXACTLY. COUPLE OTHER ITEMS. YOU'RE GOING TO SEE, AND I THINK IT'S GOING TO BE REALLY IMPORTANT AS I SHOW THE BUDGET ACTUAL COMPARISON, THE DIFFERENCE BETWEEN REVENUE COMING IN AND PERMISSION TO SPEND OR APPROPRIATIONS. YOU'RE GOING TO SEE AN ADDITION IN APPROPRIATIONS IN SEVERAL OF THESE KEY AREAS. ONE OF THE AREAS THAT -- AND BUDGETING IS NOT A SCIENCE, IT'S AN ART. IT'S NOT PERFECT WHEN YOU'RE TALKING OVER $300 MILLION TO PREDICT EXACTLY WHERE EVERYTHING FELL OR WILL FALL. ONE OF THE AREAS THAT WE NEEDED TO INCREASE BECAUSE WE DIDN'T GET IT RIGHT IN 2025 IN TERMS OF WHAT WE'RE SEEING IS THE BUDGET FOR SUBSTITUTE TEACHERS. ABSOLUTELY WE'RE SPENDING A WHOLE LOT MORE IN THE SPACE OF SUBSTITUTE TEACHERS, AND THERE'S A COUPLE REASONS FOR THAT. ABSENCES ARE INCREASING A LITTLE BIT, BUT WE'RE DOING A REALLY GOOD JOB OF FILLING THOSE. OUR SUBSTITUTE TEACHER DEPARTMENT HAS RECRUITED MORE AND MORE, AND SO GOOD NEWS FOR EVERYBODY WE'RE FILLING THOSE AT A MORE REGULAR ATE, BUT THERE'S A COST WITH THAT. AND SO IN THE BUDGET FROM '25 TO '26 THERE'S AN INCREASE OF ABOUT $1.5 MILLION. CURRICULAR MATERIALS ALTHOUGH WE GET 3.2 MILLION ALTHOUGH THAT WAS OUR OLD NUMBER FROM THE STATE, WE'RE ABSOLUTELY SPENDING THAT EVERY YEAR. SO WE OVERSPENT THAT LINE AND WE'RE GOING TO OVERSPEND THAT LINE IN 25 SO WE INCREASE THAT LINE BY $520,000. HEALTH CARE COSTS I'M NOT SUGGESTING THE DISTRICT IS PAYING 1.4 MILLION MORE, WHAT WE ARE DOING IS WE UNDERBUDGETED THAT IN 2025. AND THEN THE BUDGET FOR EXCEPTIONAL LEARNERS, NOT A BUNCHF NEW POSITIONS ADDED IN THIS SPACE, JUST RIGHT SIZING THAT BUDGET IN 2025, WE'RE OVERSPENDING THERE. WE NEED TO RIGHT SIZE IT IN 2026. THIS IS NOT TO SAY THERE'S REVENUE TO SUPPORT THIS, AND I'LL TALK MORE ABOUT THAT IN A [00:40:03] MINUTE WITH THE CONCEPT OF CASH BALANCES VERSUS APPROPRIATIONS OR PERMISSION TO SPEND, BUT THOSE ARE SOME OF THE BIG INCREASES IN THE EDUCATION FUND. DUE TO THE FACT THAT OUR AV DIDN'T GROW NEAR AS MUCH AS WE THOUGHT AND DIDN'T EVEN GROW TO THE 4% THAT ALLOWS US TO GROW GRAB THE MAXIMUM AMOUNT IN THE OPERATIONS FUND, I HAVE PREVIOUSLY STOOD UP HERE AND SAID THAT THE PLAN WAS NOT TO INCREASE THE TAX RATE IN 2026. THAT CURVE BALL OF THE AV DROPPING ON US WIN-WIN THE LAST TWO WEEKS MADE USZ DROP THAT SLIGHTLY. SO MY RECOMMENDATION FOR THE BUDGET IN TERMS OF THE PRESENTATION TODAY AND CERTAINLY WE'LL GO THROUGH THE PROCESS IN FUTURE MEETINGS WAS TO RAISE IT BY LESS THAN A PENNY, SO 0.0043. SO WE WOULD MOVE THE OPERATIONS FROM FROM 0.3553 TO 0.3596. IN A MINUTE YOU'RE GOING TO SEE WE'RE GOING TO KEEPKEEP SERVIC THE SAME. IT'S ONLY THE OPERATION RATE TO GET THAT MGQ. I'VE GOT A SLIDE RELATED TO THAT COMING UP. A COUPLE OF LITTLE BUDGETARY PROCESSES. WE'VE GOT TO STICK TO OUR TIMELINES. WE'VE GOT TO PUBLICLY ADVERTISE EVERYTHING. THAT WILL ALL START TOMORROW AFTER THIS PRESENTATION. TO PROTECT OURSELVES, WE ALWAYS ADVERTISE A HIGHER TAX RATE AND A HIGHER BUDGET IN SOME CASES AND LOWER AV. THAT WAY IF THERE'S SOME SORT OF CALCULATION ERROR, THE DLGF CAN GO IN AND RAISE THAT FORCE IF THEY WANTED TO BACK TO THE AMOUNT WE ADVERTISE. BUT THEY COULD NEVER IF WE TRIED TO NAIL IT WITH THE ADVERTISEMENT RIGHT ON THE MONEY AND WE MADE A MISTAKE, THEY NEVER CAN SAY WE MADE A MACE TAKE YOU NOT GOING TO ADVERTISE. THAT ADVERTISE IS THE ABSOLUTE MAX. >> TIM, CAN YOU CLARIFY? YOU SAID IT BUT SAID IT ONE MORE TIME. THAT'S THE TRADITION. THAT'S BEEN GOING ON FOR YEARS. >> THAT BETTER BE THE PROCESS FOR EVERY EPTY IN THE STATE OF INDIANA FOR JUST THAT REASON. YOU'RE EITHER OVERLY CONFIDENT AND KNOW YOU'RE PERFECT OR YOU PROTECT YOURSELF A LITTLE BIT. I'M NOT PERFECT. SO HERE'S THE 2026 PROPOSED ADVERTISE BUDGET VERSUS REALLY WHAT WE PREDICT WILL HAPPEN. SO ON THE LEFT YOU WILL SEE THAT EDUCATION FUND -- YOU SEE THE BUDGET IS $170 MILLION. AGAIN, THIS IS NOT SAYING WE'RE GETTING $170 MILLION IN REVENUE. THIS IS PERMISSION TO SPEND. THIS IS WHAT WE BELIEVE IS NECESSARY TO SUPPORT THE EDUCATION PORTION OF THE BUDGET IN 2026. YOU SEE REFERENDUM THERE THE SAME WAY. AGAIN, THAT'S THE ONE WE KNOW WHAT WE KNOW, WHICH IS THE MAX RATE IS 0.1995. THERE'S NO REASON TO ADVERTISE ANY HIGHER THAN THAT. THAT SERVICE YOU SEE THE ADVERTISED AMOUNT IS A LITTLE HIGHER. THAT'S JUST THAT PROTECTION IDEA. WE THINK THE REAL BUDGET WILL BE OVER $66 MILLION. THAT SERVICE EXEMPT WE THINK THAT'S GOING TO BE SPOT ON. YOU SEE THE RATE THERE WILL COME IN A LITTLE LOWER THAN WHAT WE'RE ADVERTISING. THERE'S OPERATION. WE DO ADVERTISE A RAINY DAY BUDGET WITH THE INTENT WE HOPE WE'LL NEVER NEED THAT, AND THAT SELF-INSURANCE FUND, THAT'S THAT UNIQUE LITTLE ARM TO THE BUDGETING PROCESS. THAT'S THE LITTLE INCREASE THERE. LET ME GO OVER TO ANOTHER SLIDE AND GIVE YOU A COMPARISON. AGAIN, YOU SEE THIS BIG INCREASE OF 159 MILLION TO 170 MILLION AND SAY, OH, MY GOSH, WE'VE GOT ALL THIS NEW REVENUE COMING IN. NO. WHAT WE'RE SAYING IS TO PAY THE EXPENSES WE'RE PROJECTED TO PAY, WE'RE GOING TO HAVE TO USE CASH BALANCE IN ORDER TO FUND THE EDUCATION FUND BUDGET, AND YOU SEE THAT IN THE TUNE OF ABOUT $10 MILLION. THERE'S SOME ADD ADDITIONS AND SUBSTRACTIONS, MOST OF THEM WERE IN THAT SLIDE WHERE I TALKED ABOUT SUBSTITUTE TEACHERS AND EXCEPTIONAL LEARNERS AND HEALTH BENEFITS, THOSE THINGS. YOU SEE THE REFERENDUM. AGAIN, WE GET A LITTLE OVER A MILLION DOLLARS MORE. HOPEFULLY THAT TURNS OUT AND THE AV DOESN'T DROP. THAT SERVICE YOU SEE THE BUDGE DOES INCREASE. WE'RE TRYING TO PROTECT THAT CASH BALANCE IN OUR DEBT SERVICE FUND. YOU SEE THAT DEBT SERVICE EXEMPT, THAT BUDGET IS ACTUALLY A LITTLE BIT LOWER. FOYOU TAKE WHAT THE RATE IS IN DEBT SERVICE AND DEBT SERVICE EXIST AND LOOK WHAT IT'S GOING TO BE PREDICTED IN 26 THEY'RE EXACTLY THE SAME. OPERATIONS, THERE'S THAT LITTLE BIT OF INCREASE. IT'S GOING FROM 0.3553 TO 3.556. [00:45:05] SO OVERALL THAT TAX RATE GOES TO 1.1476. HERE'S THE HISTORY OF OUR TAX RATE OVER THE LAST SEVEN YEARS. YOU CAN SEE WHAT WE ESTABLISHED IN '24 AND HELD IN '25 IS STILL A BIT LOWER THAN THE TAX RATE WE HAD IN '21, '22, AND '23. OBVIOUSLY ANY INCREASE IN THE TAX RATE IS SUBSTANTIAL. I THINK THIS IS PRETTY INSTALL IN THE GRAND SCOPE OF THINGS IN ORDER TO MAINTAIN THAT FULL 4% LEVY GROWTH IN THE OPERATIONS FUND. COUPLE OTHER ASSUMPTIONS THAT ARE IMPORTANT. PART OF THE BUDGETARY PROCESS IS THAT WE TRANSFER FUNDS FROM THE EDUCATION FUNDS TO THE OPERATIONS FUND. YOU'LL HAVE A RESOLUTION BEFORE YOU THE NIGHT OF BUDGET APPROVAL THAT KEEPS THAT AT $15 MILLION, BUT TRANCE APPARENTLY THE BUDGET PROJECTIONS ARE BASED ON THE POTENTIAL OF TRANSFERRING LESS DUE TO THE CONSTRAINTS IN PLACE WE'VE ALREADY TALKED ABOUT TONIGHT. SO WE'LL HAVE THE SAME RESOLUTION IN FRONT OF YOU, BUT THE BUDGET IS BASED ON A SLIGHTLY LOWER NUMBER. INTEREST WILL CONTINUE TO BE DEPOSIT INTO THE EDUCATION FUND IN 2026. WE ESTIMATE ABOUT A $500,000 DROP. IT'S ABSOLUTELY CONNECTED TO THAT FEDERAL INTEREST RATE, AND WE RECENTLY SAW A DROP. EXPERTS IN THAT SPACE SAY WE'RE GOING TO SEE ANOTHER ONE OR TWO DROPS IN 2025 AND MAYBE MORE IN '26, SO WE DOWN-PLAYED THAT JUST A LITTLE BIT IN TERMS OF THE REVENUE THAT WE WOULD EXPECT IN TERMS OF INTEREST. SO LOOKING AHEAD, EDUCATION OPERATIONS AND REFERENDUM CONTINUE TO HAVE BUDGET STRUCTURAL DEFICITS, MEANING WE'RE GOING TO SPEND MORE CASH IN THOSE FUNDS THAN WE HAVE REVENUE COMING IN 2026. IN THE SHORT-TERM ONCE THIS IS DUE, IT SPINS CASH BALANCES. THE 2026 BUDGET IS ABSOLUTELY DEVELOPED IN A WAY THAT HAS FLEXIBILITY. I WOULD MUCH RATHER BUDGET A LITTLE HIGHER. I DON'T THINK IT'S A LOT HIGHER, I WANT I WANT TO BE CLEAR. A LITTLE HIGHER AND KNOW WE COME SLIGHTLY UNDER BUDGET THAN COME BACK TO YOU IN NOVEMBER AND DECEMBER AND SAY, HEY, I NEED TO SPEND EVEN MORE CASH THAN WHAT WE PREDICTED IN THE BUDGET. ABSOLUTELY THERE'S FLEXIBILITY, BUT THERE'S NOT A LOT OF FLUFF BUILT INTO THIS. THOSE INCREASES ARE REAL. WE CONTINUE TO WANT TO TAKE STEPS IN THE RIGHT DIRECTION TO TRY TO CORRECT THIS. THAT'S GOING TO TAKE MULTIPLE YEARS. AND AS WE'VE TALKED ABOUT BEFORE, ALTHOUGH THERE'S A SLIGHT RECOMMENDATION FOR A TAX INCREASE IN 2026, WE'RE GOING TO SEE SIGNIFICANT RECOMMENDATIONS -- INCREASED RECOMMENDATIONS STARTING IN '27 JUST TO PULL THE EXACT SAME LEVIES IN THOSE FUNDS THAT WE WERE ABLE TO PULL IN PRIOR YEARS. SO THAT IS A VERY SORT OF BUDGETARY PHILOSOPHICAL DIFFERENCE WHERE A LOT OF DISTRICTS INCLUDING OURS WOULD SAY, HEY, WE'RE GOING TO WORK TO THE SAME TAX RATE. WE'RE NOW GOING TO START IN '27 SAYING WE'RE GOING TO START MAINTAINING THE SAME LEVY, AND THAT'S GOING TO REQUIRE A MUCH HIGHER TAX RATE IN ORDER TO DO THAT. >> CAN YOU TELL US A LITTLE BIT MORE ABOUT USING THE CASH BALANCES? THAT MAKES ME NERVOUS, SPENDING THAT DOWN, WHERE DO WE STAND NOW, WHAT'S COMMON PRACTICE? IF WE USE WHAT YOU'RE PLANNING ON NOW, WHAT POSITION WILL THAT PUT US IN? HOW DO WE GET IT BACK? >> COULDN'T SET UP A BETTER SEGUE, THANK YOU. PROJECTED CASH BALANCES. SO WHAT YOU SEE IN 2025 IS THE ACTUAL BUDGET ORDER. THOSE ARE THE SAME NUMBERS YOU SAW EARLIER, AND THE SECOND COLUMN IS WHERE WE PROJECT -- EXCUSE ME, WHERE CASH BALANCES WERE IN EACH OF THOSE FUNDS AT THE BEGINNING OF THE CALENDER YEAR 2025. SO THAT'S A VERY DIFFERENT MIND-SET OF PERMISSION TO SPEND BUT CASH, RIGHT? BECAUSE EDUCATION WE GET A MONTHLY DEPOSIT AND THE MONEY'S IN AND THE MONEY'S OUT. REFERENDUM WE GET PROPERTY TAX WITHDRAWALS THAT COME IN MAY AND JUNE AND NOVEMBER AND DECEMBER. OPERATIONS WE GET PROPERTY TAX WITHDRAWALS THAT COME IN MAY AND JUNE AND NOVEMBER AND DECEMBER. AND SO YOU ARE CONSTANTLY MONITORING BOTH OF THOSE AREAS. BASED ON THE ESTABLISHED IN PLAY 2025 BUDGET, THIS IS WHAT WE EXPECT THE CASH BALANCE TO DO AT THE END OF THE YEAR. EDUCATION RIGHT NOW WE'RE TRENDING A SLIGHT BIT BETTER THAN THAT BUT NOT BY A LOT, SO IT'S POSSIBLE THAT CASH BALANCE ENDS A LITTLE BIT BETTER THAN THAT, BUT WE 100% WILL SPEND A SIGNIFICANT AMOUNT OF THIS CASH BALANCE BY THE END OF 2025. REFERENDUM IS TRENDING RIGHT ON THE MONEY IN TERMS OF WHERE THE BUDGET'S GOING TO BE, SO I'M CONFIDENT THIS IS GOING TO BE DARN NEAR CLOSE TO WHERE THE CASH BALANCE WILL END. AND THEN OPERATIONS YOU SEE A DIP THERE, AND THAT IS ACTUALLY UNDERSPENDING THE BUDGET BY A LITTLE OVER $2 MILLION. SO WE WOULD HAVE SPENTSPENT $5 MILLION IN CASH. WE WERE ABLE TO THROUGH SOME OF THOSE COST AVERSION STRATEGIES SAVE A LITTLE BIT, BUT THAT'S ALREADY FACTORED IN HERE. SO, AGAIN, SPENDING CASH IN ALL [00:50:01] THREE. THE BUDGET BEFORE YOU TODAY THAT'S BASED ON ACTUAL EXPENSES WITH SOME PROJECTIONS, PROJECTS THAT CASH BALANCE TO BE DOWN TO A LITTLE OVER $11 MILLION, 7.4, AND 5.6. TO MR. ORR'S POINT AVERAGE MONTH OF EXPENSES HERE, $14 MILLION. SO EVEN JUST BUDGETING AT HOME TWO MONTHS IS A GOOD BENCHMARK. ONE MONTH IS DESPERATION -- MAYBE TOO STRONG OF A WORD. ONE MONTH IS GOOD PRACTICE. THE BUDGET IS PROJECTED CASH BALANCE TO BE UNDER ONE MONTH'S EXPENSES IN THE EDUCATION FUND. NOW, AGAIN WHEN WE TALKED ABOUT THIS THE IDEA IS YOU BUDGET FOR WHAT WE THINK COULD HAPPEN. IT WOULD BE GREAT TO UNDERSPEND THIS BY $2 MILLION, WHICH WOULD BE A REALLY BIG ASK, AND WE'RE STILL SPENDING CASH BALANCE TO DO THAT. THAT ANSWER YOUR QUESTION? >> SO IF I'M READING THAT RIGHT, WE'RE STARTING CASH BALANCE 11 -- OR 1.1.25, ON THE TOP LINE THERE. IF YOU MOVE ACROSS BE DROP BY $5 MILLION 1.1.26 AND ESSENTIALLY CUT IN HALF THE NEXT YEAR, SO YOU CAN'T DO IT AGAIN. I MEAN, IF THAT GOES UP LOOKING AHEAD FROM '27 TO '28 -- >> YOU TAKE THE PROJECTIONS -- ABSOLUTELY, YOU TAKE THE PROJECTIONS THAT ARE IN PLACE AND YOU MOVE THEM OUT TO '28 AND '29. >> YOU CAN'T RUN A DEFICIT. >> THAT'S A NEGATIVE AMOUNT. >> SO IT'S EITHER INCREASE OUR REVENUE OR DROP OUR SPENDING. THOSE ARE THE ONLY TWO OPTIONS. >> YOU GOT IT. AND WE, UNFORTUNATELY, KNOW WHAT THE REVENUE IS HERE, AND THAT IS NEGATIVE NUMBER FOR THE BASE AMOUNT PER STUDENT. WE ACTUALLY THINK THERE'S GOING TO BE A LITTLE BUMP DUE TO THOSE SUPPLEMENTAL GRANTS. LIKE I MENTIONED SPECIAL ED, CTE, THOSE TYPES OF THINGS. >> IT'S NOT ENOUGH. LET'S SAY WE BRING IN OUTSIDE STUDENTS AND ALL THAT, IT'S NOT EVEN CLOSE TO MAKING UP THE DIFFERENCE. >> ONE ITEM I DIDN'T ACTUALLY PUT ON THE SLIDE DECK AND I THOUGHT I DID IS WE ACTUALLY GOT AN UNFORTUNATE CURVE BALL RELATED TO TEACHER RETIREMENT. AND TEACHER RETIREMENT IS THE TERM. IT'S ANY CERTIFIED EMPLOYEE THAT HAS A TEACHERS LICENSE. ADMINISTRATORS HAVE THEM, TEACHERS HAVE THEM. THAT THE TEACHER RETIREMENT DISTRICT REQUIREMENT WENT UP BY 0.6%. AND THAT HAS AN IMPACT OVER $600,000 WE JUST HAVE TO PAY. YOU REMEMBER I WAS HERE LAST YEAR SAYING THE SAME THING AT 0.5% THAT WAS OVER $500,000 AT THAT POINT. AND SO YET ANOTHER COST THAT IS FACTORED IN THAT WE REALLY HAD NO CONTROL OVER, AND IT'S JUST ABSOLUTELY SOMETHING WE HAVE -- >> SO ARE WE LOOKING AT BOTH SIDES OF THIS? TO TIFFANY'S POINT EARLIER, IT SOUNDS LIKE THERE'S GOING TO BE A RECOMMENDATION FOR ANOTHER REFERENDUM. WE HAVE TO PLAN FOR THE DOWN SIDE OF THAT. HOW DOES THAT PROCESS BEGIN? HOW DO WE SEE THAT? I MEAN, WE'RE LOOKING AT, WHAT, $10 MILLION, REALLY $14 MILLION FROM START TO FINISH TO COME UP WITH HERE TO GET BACK JUST EVEN. IF WE CAN'T INCREASE REVENUE, WE'D HAVE TO CUT THAT MUCH. >> TIM, DO THESE BALANCES INCLUDE THE REFERENDUM WE'RE TRYING TO GET OR THIS BASED ON CURRENT? >> BASED ON CURRENT. >> THAT'S WHAT I THOUGHT. >> I WANTED TO GO INTO A SEGUE OF WHAT YOU KIND OF SAID, TOO, WE HAVE TO CUT SPENDING. AND WITHOUT GETTING INTO THE WEEDS OF WHAT THAT IS, I KNOW THAT THERE'S -- AS YOU SAID, SEVERAL DIFFERENT BUCKETS. AND HOW AND WHEN, YOU MIGHT NEED TO EXPLAIN IT. I'M ASKING FOR MY LAYMAN BRAIN, WHAT ARE WE DOING TO GO IN TO CUT SPENDING? IS THERE A PART WE'RE DOING AS WELL TO A DISTRICT INSTEAD OF JUST REACHING OUT TO THE COMMUNITY AND REACHING OUT TO OTHER ENTITIES TO SAY HERE'S WHAT WE HAVE TO ADD, ASK FOR MORE MONEY -- WHAT ARE WE DOING AS AN ADMINISTRATION AND AS A DISTRICT TO ALSO BE MINDFUL AND MAKE CUTS WHETHER IT'S 0.5% AND EVERY SINGLE DEPARTMENT HAS TO CUT THEIR DEPARTMENT FUNDS, WE KNOW THERE'S EDUCATION, WE KNOW THERE'S OPERATION FUNDS. WE HAVE ALL THESE AREAS THAT WE'RE SPENDING MONEY IN. WHAT ARE WE DOING AS A DISTRICT TO SHOW THAT WE ARE MAKING CUTS, I GUESS. >> OR TRYING TO FIND EFFICIENCIES, RIGHT? THAT'S WHY WE'RE LOOKING AT REDISTRICTING BECAUSE WE HAVE SOME FACILITIES THAT ARE JUST KIND OF IN THE UTILIZED. AND AT THE SAME TIME THAT WOULD HELP WITH TRANSPORTATION BECAUSE WE MIGHT BE ABLE TO ELIMINATE SOME ROUTES. WHAT TIM HAS ALREADY TALKED ABOUT WITH COST AVERSION, THINGS WE'VE DONE, REFUNDING BONDS, NEGOTIATING PRICING DOWN. YOU KNOW, FROM THE BEGINNING WE SAID THE THING WE DON'T WANT TO CUT IS OUR PROGRAMS BECAUSE ACADEMICALLY OUR PROGRAMS ARE THE TOP-NOTCH IN THE STATE, AND THAT'S WHY PEOPLE COME HERE. >> RIGHT. >> WE WILL ASK THE BOARD THIS SPRING TO EXTEND THE OUT OF DISTRICT TRANSFER DATE UP TO [00:55:04] OCTOBER 1ST BECAUSE WE THINK -- I KNOW THERE'S SOME PEOPLE. I HAD PARENTS CALL ME SAY, HEY, WE'D LIKE TO APPLY TO COME TO YOUR SCHOOL AND IT WAS PAST OUR DEADLINE. AND SO THAT WOULD BE ANOTHER THING. WE'RE REALLY GETTING I FEEL MORE AGGRESSIVE IN WHAT WE'RE MARKETING, SO PEOPLE CLOSE BY UNDERSTAND THE OPPORTUNITIES EDUCATIONALLY THAT YOU HAVE IF YOUR CHILD ATTENDS HAMILTON SOUTHEASTERN SCHOOLS. THE ACADEMIC PERFORMANCE WE HAVE IS PROBABLY THE GREATEST ATTRACTION WE CAN SHOW ANYONE. 96% OF OUR THIRD GRADE KIDS PASS. AP SCORES GOING UP, I-LEARN SCORES ARE GOING UP. IF YOU'RE CLOSE BY AND YOUR SCHOOL DISTRICTS AREN'T PROVIDING THOSE THINGS, IF YOU CAN PROVIDE TRANSPORTATION YOUR SON OR DAUGHTER CAN COME HERE. SO THAT'S ANOTHER WAY THE EDUCATION FUND GETS HEALTHY. LITERALLY WE'RE LOOKING AT PROGRAMS IN HEALTH CARE TO TRY AND MAKE THINGS MORE EFFICIENT AND SAVE COSTS FOR OURSELVES AS WELL AS THE EMPLOYEES. THERE'S -- EVERYTHING'S GOING TO BE ON THE TABLE AND INCLUDING CUTTING DOWN EXPENSES IN EVERY AREA. THE PROBLEM WE RUN INTO IS JUST WITH THE 2% OF THE TURF THAT TIM JUST TALKED ABOUT, WHEN THAT HAPPENED FOUR OR FIVE YEARS AGO THEY SAID, HEY, WE'RE GOING TO TAKE CARE AND PAY THAT 2% FOR ALL YOU SCHOOLS, TAKE THOSE DOLLARS AND INVEST THEM IN SALARIES AND BENEFITS FOR YOUR EMPLOYEES. WELL, WE DID THAT, AND NOW THEY'VE TAKEN THAT BACK. BUT THE EXPENSE THAT WE HAD STAYS. >> CORRECT, OKAY. >> AND SO THOSE ARE SOME OF THE DIFFICULT CHALLENGES -- AND ONCE AGAIN IT'S NOT JUST HAMILTON SOUTHEASTERN SCHOOLS, THAT ALL SCHOOLS ARE FACING RIGHT NOW TO TRY TO FIGURE THIS OUT. >> I THINK IT'S SO VERY IMPORTANT, AND I APPRECIATE YOU SAYING ALL THOSE THINGS BECAUSE THIS IS SOMETHING THAT OUR COMMUNITY WILL ASK ESPECIALLY GOING INTO REFERENDUM. OKAY, YOU NEED MONEY BUT WHAT ARE YOU DOING TO CUT? I THINK THOSE WORDS RIGHT THERE, THANK YOU VERY MUCH FOR SHARING THAT AND THANK YOU FOR THE HARD WORK OF OUR ADMINISTRATION AND THE WORK THAT WE'RE DOING. AND WE ARE DOING SOME GREAT THINGS. THANK YOU TO ALL TEACHERS THAT ARE HERE AND ALL THE PROGRAMS THAT WE DO. WE HAVE TOP-NOTCH SCHOOL DISTRICT, SO I JUST WANT TO PUT THAT OUT THERE AND THAT'S WHY I WANT TO MAKE THAT CLEAR IS WE'RE NOT -- THIS DIDN'T HAPPEN BECAUSE WE CHOSE TO JUST MAKE THESE FINANCIAL MISTAKES OR ERRORS OR ANYTHING. IT WASN'T THAT. IT WAS CERTAIN LEGISLATION, THINGS THAT HAPPENED THAT PUT CURVE BALLS INTO THE WAY THAT WE ARE ALLOWED TO BE SPENDING OR INPUT -- EXCUSE ME -- RECEIVE FUNDING. SO I JUST WANT TO SAY THANK YOU FOR THE HARD WORK THAT YOU ALL ARE DOING TO SHOW THAT WE'RE WORKING HARD TO BE EFFICIENT IN THE DISTRICT. >> THIS REALLY ENDS -- I ENDED WITH THE SAME SLIDE WE HAD BEFORE, JUST SHOWING WHERE WE THINK THE BUDGET WILL BE IN 2026 ONCE WE START THIS ADVERTISING PROCESS, WHICH BEGINS TOMORROW. BUDGET ORDER IN '25, PREDICTED IN '26. AND REMEMBER THIS IS NOT REVENUE. THIS IS PERMISSION TO SPEND -- PERMISSION TO SPEND CASH THAT WE HAVE ON HAND, AND AS WE TALKED ABOUT THAT IS SHOWN ON THE PREVIOUS SLIDE. >> I WANT TO ASK ONE MORE QUESTION, AND IT'S KIND OF ONE THAT I PROBABLY KNOW THE ANSWER ON BUT MORE FOR THE COMMUNITY THAN ANYTHING BECAUSE I THINK IT'S ONE OF THE EASIEST AS I DRIVE AROUND AND TALK TO PEOPLE IS -- TO SUZANNE'S POINT, WHAT CAN YOU GUYS CUT, WHAT CAN YOU DO LESS WITH, WE ARE REALLY STARTING TO GET OUR FACILITIES BACK ONLINE. I'VE BEEN ON THE FACILITIES COMMITTEE AND THINGS ARE IMPROVING, A BEAUTIFUL NEW BUILDING WE'RE ABOUT TO OPEN. WE'RE MAKING RENOVATIONS IN OTHER PLACES, DOING ATHLETICS FIELDS, WE'RE REALLY PROUD OF OUR SOCCER AND LACROSSE FACILITIES. CAN YOU EXPLAIN HOW WHEN SOMEONE SAYS, OH, IF YOU DIDN'T HAVE SUCH A BIG SCOREBOARD AT THE FOOTBALL STADIUM OR WHEREVER, THAT THAT DOESN'T REALLY TRANSLATE INTO OPERATIONAL COSTS AND SAVE US? >> YEAH, SO THAT'S DEBT SERVICE, RIGHT, AND THAT'S PART OF THE TAX RATE. UNFORTUNATELY, THERE'S NO VEHICLE WHATSOEVER TO TAKE DEBT SERVICE DOLLARS AND PUT THEM ON, LIKE, SALARIES AND WAGES AND BENEFITS AND THINGS LIKE THAT. REALLY TRULY A SECOND BUCKET. AND YOU'RE RIGHT FOR THE AVERAGE PERSON THAT IS A LITTLE BIT OF, GOSH, HOW CAN WE DO THIS BUT WE'RE STRUGGLING HERE. THEY REALLY DO WORK INDEPENDENT OF EACH OTHER, AND TO YOUR POINT ANY MAINTENANCE THAT WE PUSH ON AND DON'T TAKE CARE OF NOW JUST COMPOUNDS ITSELF IN THE FUTURE. AND YOU CAN SAY THAT WITH EVERYTHING. AND SO THERE'S A FINE LINE BETWEEN DOING THE RIGHT THING NOW OR PAYING FOR IT A LOT LATER, AND I -- YOU KNOW, IT'S NOT MY POSITION TO SAY BUT OUR TEAM'S DONE AN AMAZING JOB IN THAT. >> THANK YOU. >> ANYONE ELSE? ALL RIGHT, THANK YOU VERY MUCH. ALL RIGHT. WE ARE ADJOURNED. THANK YOU * This transcript was compiled from uncorrected Closed Captioning.