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BEING OF THE BUFORD COUNTY BOARD OF EDUCATION FINANCE COMMITTEE TO ORDER IS NOW A FIVE O'CLOCK WE'RE IN A CONFERENCE ROOM E DOING REMOTE HYBRID CONFERENCE MEETING AS A MEETING, WE'LL BE LIVE CHAT STREAM BY THE COUNTY CHANNEL.
AND WE HAVE ANY PUBLIC COMMENTS.
NO, BUT WE NEED TO START WITH THE PLEDGE OF ALLEGIANCE.
YOUR COMMITTEE MEMBERS OF, UH, RICHARD GUYER, EARL CAMPBELL, CHRISTINA GROSSE, AND RACHEL WISNIEWSKI ARE ALL IN ATTENDANCE.
I'LL START WITH THE PLEDGE OF ALLEGIANCE, PLEASE RISE AND JOIN ME.
I PLEDGE ALLEGIANCE TO THE FLAG, TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE PUBLIC, WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE AND JUSTICE FOR ALL, UM, APPROVAL OF THE AGENDA.
MR. CAMPBELL HAS MADE A MOTION TO APPROVE THE AGENDA OR DO I HAVE A SECOND? I'LL SECOND.
GROSSE THE SECOND, ANY DISCUSSION ON THE AGENDA, HEARING NONE.
ALL THOSE IN FAVOR, SIGNIFY BY SAYING AYE.
DO WE HAVE ANY PUBLIC COMMENTS? WE HAVE NO PUBLIC COMMENTS.
I LIKE TO KNOW IF WE COULD HAVE A MOTION TO APPROVE THE JANUARY 13TH, 2022 COMMITTEE MEETING MINUTES.
CHAIRMAN MR. GAMBLE HAS MADE A MOTION TO APPROVE.
DO I HAVE YOUR A SECOND AND YOUR DR.
SECONDLY, IS THERE ANY DISCUSSION HEARING NONE, ALL THOSE IN FAVOR SIGNIFY BY SAYING, I, I THINK WE HEARD EVERYBODY SAYING AYE.
I'LL START WITH THE FYI 20, 22 SECOND PORTER FINANCIAL REPORT.
UM, SO JUST AS THE SECOND QUARTER FINANCIAL REPORT FOR THE QUARTER ENDED DECEMBER 31ST AT 2021.
SO, UH, FOR THE FIRST SIX MONTHS OF THE SCHOOL YEAR.
SO, UH, IN A LATER REPORT, WE'RE GOING TO TALK ABOUT, UH, UP-TO-DATE INFORMATION, WHICH WILL CARRY FORWARD FOR YET ANOTHER MONTH.
UM, BUT THIS IS THROUGH DECEMBER, SO THEN IT CAN BE A BIT CONFUSING, BUT, UH, THIS IS FOR THE FIRST SIX MONTHS.
SO AS FAR AS GENERAL FUND REVENUES, WE FIRST HEARD YOU TYPICALLY IS OUR LARGEST FUND IN THE SCHOOL DISTRICT.
UH, WE TYPICALLY REPORT PRIMARILY ON THOSE FUNDS.
LOCAL TAX REVENUES WERE REPORTED AT $83 MILLION OR ABOUT 50.8%.
THE PRIOR YEAR COLLECTIONS WERE AT 23.8 AND THAT WAS DUE TO THE TAX BILL DELAY IN THE PRIOR YEAR.
SO, UH, REVENUES WERE COLLECTED MUCH LATER IN THE YEAR, UH, THAN THE CURRENT YEAR.
SO I'M PLEASED TO SEE, UH, 50% OF THE TAX REVENUES AT THIS POINT IN THE YEAR.
UH, SO THAT IS SOMETHING THAT'S MORE TYPICAL OF, OF A TAX YEAR.
UH, WE, UH, UH, DREW DOWN APPROXIMATELY $15 MILLION OF A TAX ANTICIPATION NOTE IN THE, UH, DURING OCTOBER.
SO IN THAT SECOND QUARTER AND IT WILL BE REPAID IN FEBRUARY.
SO WE'RE WORKING ON THE, UH, PAPERWORK NOW TO REPAY THAT SINCE OUR JANUARY TAX REVENUES HAVE COME IN AS WELL, UH, STATE REVENUES ARE REPORTED AT 43 AND A HALF MILLION OR 40.2% OF THE IN OF THE YEAR, UH, WITH AND A PRIOR YEAR WAS 40.8%.
THOSE ARE TAX STATE REVENUES IN THE GENERAL FUND ONLY.
UM, THEY'RE BASICALLY IN LINE WITH PRIOR YEARS, OUR EXPENDITURES ARE UP A LITTLE REPORTED, 119.9 MILLION.
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OUR BUDGET IS 274.3 MILLION.AND THE PRIOR YEAR SPENDING WAS A LITTLE LESS THAN THAT.
SO WE ARE SPENDING A LITTLE HIT A LITTLE AHEAD OF THE GAME, UM, THIS YEAR.
UM, AND, UH, PRIMARILY THE ADDITIONAL SPENDING IS IN THE SUPPORT PROGRAMS, UH, AS OPPOSED TO THE INSTRUCTIONAL AREAS, UM, PRIMARILY IN THE MAINTENANCE, CUSTODIAL GROUNDS AND SERVICE CONTRACT AREAS.
UM, SO IN THE SPECIAL REVENUE FUNDS WE HAD, UH, SPENDING PRIMARILY, UH, THE LARGEST, THE BULK OF OUR SPENDING AND SPECIAL REVENUE RIGHT NOW IS IN THE SR AND ARCA FUNDS.
AND SO DURING THAT QUARTER WE SPENT $8.6 MILLION OF OUR ALLOCATIONS.
UM, AND SO WE'LL HAVE, UH, AN UPDATE ON OUR NEXT BOARD MEETING OF ESTHER.
SO I WON'T GO INTO ANY MORE DETAIL ON THAT PARTICULAR TIME, BUT, UH, NEXT TUESDAY NIGHT WE'LL HAVE AN UPDATE ON THE STANDING AND THE ACTIVITIES THERE.
UM, CAPITAL PROJECTS ARE, UM, THAT'S OUTSTANDING, OUR 79.4% COMPLETE OF OUR 8% PROJECTS.
SO, UH, AS OF THE END OF THE SECOND QUARTER, AND WE'RE GOING TO BE BRINGING FORWARD IN A FUTURE WAR MEETING, PARTICULARLY DISCUSSION ON MARCH 25TH WORK SESSION ABOUT UNUSED 8% SCIENCE.
WE'RE GOING TO BE CLOSING OUT THE 2018 AND 2019 PROJECTS, AND WE'LL BRING THOSE FORWARD FOR DISCUSSION AT THE WORK SESSION FOR THE USE OF THOSE FUNDS.
AND, UH, OUR REFERENDUM PROJECTS FOR THE 2019 REFERENDUM ARE 60, ABOUT 68% AS OF DECEMBER 31ST.
SO, UM, THAT THAT'S, UH, THE BULK OF THE INFORMATION PROVIDED TO YOU IN THE EXECUTIVE SUMMARY.
AND I'M NOT GONNA GO INTO ALL THE DETAILS OF THAT SUMMARY, BUT, UM, YOU HAVE, YOU HAVE THOSE AVAILABLE, UM, AND I'LL BE HAPPY TO TAKE ANY QUESTIONS OR COMMENTS YOU MAY HAVE AT THIS TIME.
ARE THERE ANY QUESTIONS MR. CAMPBELL? OKAY.
, DO YOU HAVE ANY QUESTIONS? NO, SIR.
I HAVE A NUMBER PAGE, NUMBER THREE.
YOU TELL ME EVERY YEAR WHAT THIS IS, AND I NEVER, NEVER REMEMBER INTERNAL SERVICE FUND WE'RE AT 78%.
UM, AND WHAT IS THE INTERNAL SERVICE? YES, SIR.
SO THE INTERNAL SERVICE FUND WAS ESTABLISHED, UH, PROBABLY 20 YEARS AGO, 15, 20 YEARS AGO AS A FUND THAT ALLOWS US TO SET ASIDE, UM, A BALANCE TO COVER UNPAID LIABILITIES FOR WORKERS' COMPENSATION CLAIMS THAT WE ARE ANTICIPATING IN THE, IN THE NEAR TERM.
WE TYPICALLY SPEND ABOUT A MILLION DOLLARS IN THAT AREA.
UM, AND SO IT LOOKS LIKE THE ACTIVITY IS STEPPED UP A BIT IN THIS YEAR.
UM, I DON'T HAVE THE DETAILS OF WHAT PARTICULAR CLAIMS ARE, BUT, UH, TYPICALLY THAT WOULD INVOLVE LARGER CLAIMS THAN NORMAL, UM, UH, MORE SEVERE INJURIES AND THAT SORT OF THING.
SO WE'RE AT A 78% EXTENDED HALF THE YEAR TO GO.
SO, AND THE FUND IS, UH, IS THE REVENUES THAT COME INTO THAT FUND ARE ACTUALLY CHARGES TO THE GENERAL FUND.
SO THOSE FUNDS ARE REALLY THAT THE IMPACT IS REPLICATED OVER AND THE GENERALS ON AS WELL.
SO IT DOESN'T HA AND ALSO, UM, INSURANCE PROCEEDS FLOW INTO THAT FUND AS WELL TO COVER, UM, ANY, UH, BUT WE ARE SELF-INSURED FOR WORKERS' COMP.
SO INSURANCE PROCEEDS WOULD BE VERY MINIMAL AND RELATED TO A PROPERTY OR CASUALTY, UM, INSURANCE TYPE CLAIMS. SO, UM, SO IT'S, IT'S BECAUSE WE ARE SELF-INSURED FOR WORKERS' COMPENSATION.
NEXT QUESTION IS ON PAGE 12, YOU GET DIRECT SUPERVISION OF SPECIAL PROGRAM WHERE AT 60.5% EXPENDED.
AND I SEE, UH, SALARIES AND BENEFITS ARE WAY OUT OF WHACK TO WHAT'S GOING ON THERE.
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OF CATEGORIES IN THE REPORT HERE TODAY.UH, THERE WAS SOME MOVEMENT OF A COUPLE OF STAFF MEMBERS.
UM, PREVIOUSLY WE DID NOT HAVE A, UM, A DIRECTOR OR A, UH, STUDENT SERVICES OFFICER.
AND SO THERE WERE SOME BUDGET SHIFTS, UH, OVER, AROUND TO COMPENSATE FOR THAT.
AND SOME ADDITIONAL, UM, UH, AN ADDITIONAL TRANSFER IS NEEDED TO CORRECT THAT, UM, UH, CHANGE OR ANOTHER LOOK AT THE SALARY, THE ACTUAL INDIVIDUALS THAT ARE CODED IN THAT PARTICULAR CATEGORY, BUT IT HAS TO DO WITH THE STUDENT SERVICES GROUP.
SO WE IT'S ON OUR RADAR AND I'VE ALREADY ASKED MY STAFF TO TAKE A LOOK BAD, TO MAKE SURE WE'RE GETTING THAT, UH, THOSE CORRECTIONS MADE.
SO WITH THE NEW, THE NEW BUDGET, YOU WILL MAKE THOSE DIRECTIONS.
WE'RE GOING TO GET THEM RIGHT BEFORE THE NEXT QUARTER IN.
AND SO DEFINITELY THE NEW BUDGET WILL HAVE REFLECT THE CHANGE YESTERDAY.
PROJECTED FUND BALANCE IS APPROXIMATELY 8 MILLION, NOT QUITE $8 MILLION MORE THAN WHAT WE HAD BEGINNING FUND BALANCE LAST YEAR.
UM, IT'S ACTUALLY NOT A PROJECTED NUMBER.
THAT'S PROBABLY POOR LABELING ON THAT ROW.
UM, THE, THE INCREASE OR EXCESS YOU SEE HERE OF $7.7 MILLION IS THE ACTUAL REVENUES THAT EXCEED THE, AT THIS POINT IN THE, IN THE YEAR.
SO WE HAVE AN EXCESS RIGHT NOW, UM, AND THAT, AND THE 50,550,000 WAS THE PRIOR FUND BALANCE.
UM, BUT THAT DOES NOT REFLECT WHAT THE, WHAT THE END OF YEAR WILL BE.
IT'S ONLY THE REVENUES WE'VE COLLECTED OR RECEIVED SO FAR AND THE MONEY WE'VE SPENT OUT AS OF THAT PARTICULAR DATE.
SO CAN YOU BRING THAT BACK UP A LITTLE LATER ON, NEXT ITEM IS ON PAGE 22 TRANSFERS TO CHARTER SCHOOL 159%.
UM, THAT IS TYPICALLY IN THE, UM, ABOUT 20,000, UH, ABOUT 20,000 A MONTH.
SO THAT DOES LOOK UNUSUALLY LARGE.
UM, THERE ARE ALSO TRANSFERS TO, OR FROM AES FOR OUR, THE FOOD SERVICE PROGRAM.
WE, WE MANAGE THE PROGRAM, THE FINANCES RUN THROUGH US AND WE, UH, AES PAYS FOR THE NET PROFIT LOSS.
SO I WILL, UH, DEFINITELY LOOK INTO THE DETAILS OF THAT AREA.
UM, BUT TYPICALLY IT SHOULD REFLECT ABOUT $20,000 A MONTH.
I PARTICULARLY, I'M NOT, I'M NOT CERTAIN WITH THAT ACTIVITY IN FLEX, SO I WILL COME BACK TO THE COMMITTEE WITH A RESPONSE ON THAT ONE.
AND LASTLY, UM, CAPITAL BUDGETS, YOU SAY THE 18 AND 19 AND CLOSE OUT THERE SHOULD BE CLOSED OUT THAT'S, UM, PAGE FIRST PAGE, FIRST PAGE CAPITAL PROJECTS, BUT THE OTHER ONES WE SHOULD BE GETTING PRETTY CLOSE ON 2020 AS WELL.
ARE THERE ANY OTHER QUESTIONS BY THE COMMITTEE MEMBERS? ALL RIGHT.
SO WHEN YOU, I FORGOTTEN WHAT PAGE IT IS, UM, BUT YOU KEEP GOING TO THOSE STUDENT ACTIVITY FUNDS.
UM, TANYA, CAN YOU JUST GIVE AN EXPLANATION THAT THE STUDENT ACTIVITY FUNDS ARE COLLECTED AT THE SCHOOL? THEY PRIMARILY REFLECT, UH, THE COMPUTER? UM, I DON'T KNOW WHAT YOU CALL IT.
CAUSE THERE'S A HUGE, UH, UM, VARIETY OF HOW MUCH EACH SCHOOL HAS.
I DON'T KNOW WHAT PAGE THAT IS.
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CAN YOU JUST TALK TO SPEAK TO THAT PLEASE? SO THE DISTRICT OFFICE, UH, BALANCE IS THAT THE FUNDS FOR TECHNOLOGY USAGE FEE IN PARTICULAR COLLECTED AT THEIR SCHOOL LEVEL AND IN THE TRANSFERS COLUMN IN BOLD THERE, THE LAST SECOND TO THE LAST COLUMN TO THE RIGHT, THOSE ARE THE TRANSFERS, TRANSFERRING THOSE FUNDS INTO THE DISTRICT OFFICE LOCATION.AND THEN WE EXPEND THOSE FUNDS ON REPAIRS, UH, ON FOR THE LAPTOPS.
IF THEY'RE NOT SPENT, UH, DOWN, WE, UH, COMPLETELY WE'LL USE THEM TO BUY REPLACEMENT LAPTOPS.
SO THAT'S THE BULK OF THE REVENUES ALSO IN THE DISTRICT OFFICE, THOSE REVENUES ALSO INCLUDE ANY FACILITIES USE FEES.
SO THOSE WOULD HAVE BEEN DRASTICALLY REDUCED THIS YEAR, UM, DUE TO COVID.
BUT, UH, THAT COULD BE, UH, THAT IS A PORTION OF THAT MT.
DISTRICT OFFICE BALANCE AS WELL.
SO WAS YOUR QUESTION REFERRING TO THE BALANCES IN THE INDIVIDUAL SCHOOLS? YES.
THERE JUST SEEMS TO BE SUCH A YES.
THE BALANCES IN THE ACCOUNTS OF THE HIGH SCHOOLS IN PARTICULAR WOULD REFLECT ATHLETICS, HIGH SCHOOLS AND MIDDLE SCHOOLS BOTH HAVE ATHLETIC FUNDS IN THEM, GATE FEES, UM, NET OF ANY EXPENSES THEY PAID OUT.
UM, THEY WOULD ALSO INCLUDE ANY, UH, PERFORMING ARTS CENTER REVENUE IF SOMEONE WOULD, UH, CHURCHES USE THE PERFORMING ARTS CENTERS OR DANCE RECITALS OR SO ON.
UM, THEY WOULD ALSO INCLUDE ANY OTHER FACILITIES USE RENTALS, UH, IF SOMEONE WAS USING THE CAFETERIA OR OTHER PARTS OF THE BUILDING, UM, DURING, OR THE PARKING LOT EVEN, UH, OR ANY PLACE ON THE GROUNDS.
SO, UH, DONATIONS, UH, UM, ARE ALSO IN SOME SCHOOLS REPRESENT A VERY LARGE PORTION OF THEIR REVENUES AND SO THAT SOME OF THEM HAVE ACCUMULATE QUITE A SIGNIFICANT BALANCE OVER THE YEARS.
UM, AND THEN OTHER SCHOOLS EITHER SPEND, UH, YOU KNOW, THEY BASICALLY SPEND THEM ON ITEMS THAT WE DO NOT ALLOW WITH TAXPAYER DOLLARS.
SO INCENTIVES FOR STUDENTS, FOR EXAMPLE, T-SHIRTS FOR STAFF OR STUDENTS, WE DON'T TYPICALLY ALLOW, UM, CLOTHING ITEMS, UM, THAT IN THE GENERAL OPERATING FUNDS.
UM, AND, UH, SO THAT'S THE SORT OF THING THAT WE SEE TYPICALLY IN, UH, SOME OF OUR GAME OFFICIALS ARE PAID OUT OF THE GATE FEE REVENUES AND TICKET TAKERS ARE COMPENSATED THROUGH THESE FUNDS AS WELL.
SO THERE'S A WIDE ARRAY OF EXPENSES THAT COME AND GO FROM THESE TYPES, UH, TEACHER APPRECIATION AS WELL, THAT, YOU KNOW, DINNERS LIKE PIZZA FOR TEACHERS OR BREAKFAST FOR TEACHERS ON TEACHER APPRECIATION DAY.
SO THAT'S THEIR WAY OF, UM, THEY CAN COMPENSATE AND APPRECIATE SHOW APPRECIATION WITHOUT HAVING THOSE AFFECT TAXPAYER DOLLARS.
UM, YEAH, I KINDA JUST HAD A QUESTION THAT CAME UP AS I WAS, WE WERE TALKING ABOUT THE STUDENT ACTIVITIES FUND BALANCE.
UM, I THINK SOMETHING JUST TO CONSIDER FOR THE FUTURE, UM, ESPECIALLY BECAUSE OF THE DISPARITIES IN THE AMOUNT OF FUNDS THAT ARE IN VARIOUS DIFFERENT SCHOOLS AND, UM, PARTICULARLY THE HIGH SCHOOL LEVEL.
I THINK IT MIGHT BE BENEFICIAL IF WE WERE ABLE TO LOOK AT THIS FROM A PER PUPIL STANDPOINT, UM, BECAUSE YOU KNOW, MAY RIVER HIGH HAS PROBABLY DOUBLED THE STUDENT POPULATION THAN SOME OF THE OTHERS.
UM, SO WHILE THEY HAVE A VERY HIGH AMOUNT, UM, IF WE PUT IT INTO PERSPECTIVE OF PER PUPIL AMOUNTS, IT MIGHT GIVE US A DIFFERENT IDEA OF HOW MUCH FUNDS, UM, COULD BE EXPENDED ON EACH INDIVIDUAL STUDENT, WHETHER IT BE SPORTS OR OTHERWISE.
UM, SO JUST, JUST AN IDEA OR A CONCEPT TO THINK ABOUT, UM, AS A WAY TO LOOK AT THIS PERHAPS DIFFERENTLY IN THE FUTURE.
I THINK I ACTUALLY HAVE A SCHEDULE IN WHICH I'VE DONE THAT.
UM, AND I THINK IF THERE'S THERE WILL BE A PATTERN, UM, AND IT'S BASICALLY BASED ON, I THINK IT'S GOING TO BE, UH, CONNECTED TO WEALTH AND POVERTY TO BE QUITE HONEST.
SO THAT'S SOMETHING THAT WE'LL SEE IN THOSE MORE FLUENT AREAS.
LET'S MOVE TO THE NEXT ITEM, THE BUDGET.
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OKAY.SO WE'RE, UM, THIS UPDATE IS A HYBRID OF TWO YEARS.
SO REALLY, AS WE BEGIN OUR BUDGET PREPARATIONS FOR THE NEXT YEAR, WE HAVE TO REALLY TAKE A DEEP DIVE INTO THE CURRENT YEAR.
AND WE ARE ACTIVELY MONITORING TAX REVENUE AS, AS A MAJOR COMPONENT OF, UM, OF OUR, OUR NEXT YEAR BUDGET.
SO, UH, THE FIRST SLIDE HERE, UH, DISPLAYS THAT WE HAVE COLLECTED AS OF JANUARY 31ST 90.5% OF THE, UM, REVENUE BUDGET TAX REVENUE BUDGET.
SO THE TOTAL BUDGET IS 274 MILLION, BUT TWO THIRDS OF OUR BUDGET IS CURRENT IS TAX REVENUE, WHICH EQUALS $163 MILLION.
SO WE'VE COLLECTED 148 OF THAT HUNDRED 63 MILLION.
AND ONE OF THE BUS THAT'S INDICATORS FOR US, UH, IS TO LOOK AT MULTIPLE YEARS OF COLLECTIONS OR REVENUES RECEIVED IN OUR ACCOUNTS THROUGH JANUARY 31ST.
SO BEING ABLE TO READ THE DATA, I'VE ONLY PRESENTED FOUR YEARS HERE, BUT WE HAVE A CHART THAT LISTS IT FOR PROBABLY 15 OR 20 YEARS.
AND SO WE CAN SEE WHAT PATTERNS ARE GOING BACK AND TWO TIMES, UM, BUT THEY'RE ALL EVERY YEAR HAS A DIFFERENT FACTOR.
UM, THIS YEAR, UM, THERE IS A UNIQUE FACTOR, BUT AS WE COMPARE LAST YEAR, WE HAD A TAX BILL DELAY, AS YOU REMEMBER.
AND, UH, THE TAX DEADLINE WAS EXTENDED TO MARCH 31ST, THE PRIOR YEAR WAS RELATIVELY NORMAL.
UH, BUT IT WAS, UH, THE FIRST YEAR OF COVID THE PRIOR YEAR TO THAT WAS ACTUALLY A REASSESSMENT YEAR.
UH, AND, UH, SOMEWHERE RIGHT IN THERE, WE HAD HURRICANE MATTHEW, I THINK THE YEAR BEFORE THAT.
SO WE'VE HAD A PATTERN IN THE LAST FIVE YEARS OF SORT OF ON, UM, VOLATILITY, I GUESS YOU WOULD SAY IT'S SO IT'S DIFFICULT TO, UM, ASSESS WHERE, WHERE WE ARE IN COMPARISON TO OTHER OTHER YEARS WHEN CERTAIN ISSUES THAT WERE OCCURRING OR EXTENSION CANADIA OCCURRING IN THAT TAX YEAR, WE GO TO THE NEXT SLIDE.
AND, UM, THIS, UH, THE CURRENT YEAR, THE ISSUE WE'RE EXPERIENCING, UM, IS THAT THE COUNTY HAS WAIVED PENALTIES FOR LEGAL RESIDENTS APPLICANTS.
SO THOSE FOLKS THAT WERE BILLED A 6% RATIO ASSESSMENT RATIO FOR THEIR HOMES, WHETHER IT'S AN ERROR OR THEY JUST MOVED INTO THE AREA, UM, ARE ALLOWED TO NOT PAY THEIR TAX BILL, UH, UNTIL THAT APPLICATION IS BEEN APPROVED OR DENIED.
SO IF THEY HAVE NOT ALREADY PAID THEIR TAX BILL, THEY MAY, THEY MAY WAIT TO PAY THEIR BILL UNTIL THE APPLICATION HAS BEEN PROCESSED.
AND THEN THERE'LL BE NOTIFIED OF THE OUTCOME WITHIN 30 DAYS, AND THEN THEY PAY THE BALANCE.
BUT ALL OF THAT IS WITHOUT PENALTY.
SO THERE IS NO REAL INCENTIVE TO IF THEY HAVE A LEGAL RESIDENCE APPLICATION IN PROGRESS, WHICH WOULD CHANGE THEIR ASSESSMENT RATIO FROM 6% TO 4%, THEN THERE IS NO ADVANTAGE OF THEM PAYING THE TAX BILL.
NOT AT, UH, I THINK WE HAD A MEETING.
WE HAD A MEETING, UH, A WEEK, FEW WEEKS AGO, UH, WITH THE COUNTY TREASURER AND MS. WALL STATED THAT THE 90 PLUS PERCENT OF THE LEGAL RESIDENTS APPLICATIONS WERE APPROVED ANNUALLY.
SO THE MAJORITY OF THESE WILL BE SWITCHED IN MY OPINION, FROM 6% TO 4% RATIO, WHICH WILL THEN REMOVE ALL OBLIGATION TO PAY SCHOOL OPERATING TAXES, SCHOOL OPERATIONS TAXES ARE 60% OF THE GENERAL FUND BUDGET AND WE'LL ELIMINATE ANY TAX OBLIGATIONS COMING, TAX REVENUE, COMING TO THE DISTRICT.
SO WE'RE REALLY IN A TIME OF UNCERTAINTY, WE'RE HAVING TO JUST WAIT AND SEE EACH MONTH TO RECEIVE THE INFORMATION.
UM, BUT WE DO HAVE ABOUT $10 MILLION LEFT TO COLLECT FOR THE THROUGH.
UM, THAT WILL BE THROUGH, WE WILL WORK RECORD THOSE REVENUES ALL THE WAY THROUGH ALL THIS 31ST.
SO, UH, I HAVE REQUESTED SOME INFORMATION FROM THE ASSESSOR'S OFFICE TO GAIN ANY KIND
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OF DATA THAT MIGHT HELP SUPPORT, UH, SOME CALCULATION ENDS THAT WE MIGHT BE ABLE TO PROJECT, UH, WHAT THOSE NUMBERS WILL BE, BUT IT'S REALLY NOT A YEAR WHERE WE HAVE ANY BASIS TO COMPARE UPON.SO WE'LL JUST BE WATCHING IT CLOSELY AND WE'LL BRING FORWARD AND UPDATE EACH MONTH, THIS COMMITTEE, SO THAT YOU ARE AWARE OF WHERE WE ARE.
UM, THE NEXT SLIDE, UM, JUST GIVES A HISTORY.
I SHOW THIS EACH YEAR OF WHERE WE ARE JUST ONE OF THE ONLY POINT I WANT TO MAKE HERE IS THAT WE DO ARE, ARE FACING A REASSESSMENT IN A COUPLE OF YEARS, 20, 24 IS ABOUT WHEN WE WILL HAVE IT.
IT IS REQUIRED TO BE DONE EVERY FIVE YEARS.
SO I WOULD THINK AT LEAST BY THAT TAX YEAR.
AND SO, UM, THAT'S GOING TO BE AN IMPORTANT YEAR FOR TAX REVENUE, PROJECTIONS, AND CALCULATIONS, AND, AND FOR ACTIVE COMMUNICATION WITH THE COUNTY, WHICH I HAVE PRETTY REGULARLY.
SO, UM, THAT TAKES, UM, THAT ENDS THE DISCUSSION OF THE CURRENT TAX REVENUES.
UH, SO WE'LL JUST MOVE ON TO THE NEXT YEAR, UH, REVENUES.
SO AGAIN, THIS IS THE GRAPH OF THE 60 40 SPLIT BETWEEN LOCAL AND STATE REVENUE.
UM, AND THERE, SO LOCAL LOCAL REVENUE OF COURSE IS PRIMARILY TAX REVENUE, BUT THE STATE REVENUE SOURCES COME IN A COUPLE OF MAJOR SOURCES, MAJOR POTS.
ONE IS THE EDUCATION FINANCE ACT OR EFA, AND THE OTHER IS TIER THREE PROPERTY TAX RELIEF.
SO THOSE ARE THE LARGEST, UH, OF A HUNDRED MILLION DOLLARS WE RECEIVE IN STATE REVENUE IN THIS CATEGORY.
THESE ARE TWO OF THE BIGGER SOURCES OF FUNDS.
THERE WERE ABOUT 40 DIFFERENT SOURCES OF NUNS IN VARYING CATEGORIES.
UM, BUT, UH, WE'LL TALK ABOUT THOSE IN JUST A MINUTE IN MORE DETAIL.
SO BACK TO THE TAX REVENUE THAT A LITTLE HEAD OF MYSELF THERE.
UM, SO THE MILL RATE IS VERY IMPORTANT, UH, WHEN IT COMES TO THE LOCAL TAX REVENUE, UM, THE CURRENT OPERATING MILLAGE RATE IS 121.6 MILLS.
UM, IN ORDER TO, UH, GET A REFLECTION OF WHAT THE SCHOOL DISTRICT IS, UH, ALLOWED BY STATE LAW TO INCREASE, UM, THAT MILLAGE, IF NEEDED.
AND EACH YEAR WE HAVE A MAXIMUM AMOUNT, A PACK THAT IS, UH, IN PLACE AS A RESULT OF THE STATE LAW ACT THREE OF THE EIGHT.
UH, SO THIS ACT RADIATE CAPS, OUR OPERATING MILLAGE AT INFLATION PLUS GROWTH.
AND BOTH OF THOSE NUMBERS COME TO US FROM STATE OFFICIALS, THE DEPARTMENT OF REVENUE AND FISCAL AFFAIRS.
AND, UH, THEY COME AT DIFFERENT TIMES.
SO AT THIS POINT IN TIME, WE'VE RECEIVED THE INFLATION RATE, BUT NOT THE GROWTH RATE AND INFLATION THIS YEAR.
THE PERCENTAGE THAT WE'VE BEEN GIVEN IS 4.7%.
NOW THIS IS THE HIGHEST RATE INFLATION RATE I'VE SEEN, UM, INDEX THAT I'VE SEEN IN MANY YEARS.
IT LAST YEAR, FOR AS AN EXAMPLE, IT WAS 1.2, 3%.
UM, WE HAVE NOT YET RECEIVED THE GROWTH RATE.
UH, WE KNOW THAT THE CENSUS OCCURRED THIS YEAR.
THERE COULD BE SOME QUESTION OF WHETHER WE DO HAVE INCREASES OR, YOU KNOW, THE BASED ON THE DATA.
UM, BUT WHAT MY UNDERSTANDING IS THAT, UM, THAT THE, OUR INDEX OR OUR MILLAGE RATE CAP CANNOT GO DOWN FROM THE 4.7%.
SO IF GROWTH FOR ANY REASON IS A NEGATIVE AMOUNT, AND I DON'T THINK IT WILL BE, THEN THAT NUMBER WOULD BE NO LOWER THAN THIS 4.7.
SO, UH, WE ARE EXPECTED TO RECEIVE THE GROWTH INFORMATION.
UH, IT SHOULD BE RELEASED IN MARCH, UH, FROM THE FISCAL AFFAIRS OFFICE.
SO, AND ME THE SUPERINTENDENT, AND I RECEIVE A LETTER FROM THAT OFFICE AS SOON AS IT'S AVAILABLE.
AND THEN WE'LL UPDATE THIS INFORMATION, UPDATE OUR TABLES AND, AND BRING THAT I WILL KEEP YOU BOARD AND THIS COMMITTEE INFORMED OF THE, OF THAT RATE.
UM, SO THE NEXT SLIDE IS ACTUALLY THE CALCULATION, UM, AND HOW IT'S APPLIED TO.
AND SO IN THE INTEREST OF GETTING AN IDEA OF ABOUT WHERE WE'RE, WHERE WE'RE AT, WHAT I'VE DONE IS TAKEN THE, THE PRO THE MILLAGE RATE, WHICH I UNDERSTAND THAT THIS IS MAYBE A LITTLE CONFUSING, BUT
[00:30:01]
BUDGET YEAR 20 22, 23 WILL BE TAX YEAR 22.UH, AND I'M USING THE PRIOR YEAR'S MILLAGE, WHICH IS THIS YEAR IN ORDER TO CALCULATE, UH, THE CURRENT, UH, THE NEXT YEAR'S ALLOWABLE MILLAGE INCREASE.
SO 121.6 TIMES 4.7% GIVES US 5.7 MILS.
SO AT THIS POINT IN TIME, AND, AND IT WILL CHANGE, UH, WE, IT APPEARS THAT WE COULD GO, UH, INCREASED MILLAGE IF THE BOARD CHOOSES BY 5.7 MILLS.
AGAIN, WE'RE STILL MISSING THAT ONE COMPONENT OF POPULATION GROWTH.
AND AS SOON AS WE RECEIVE THAT, WE WILL UPDATE THESE NUMBERS, BUT THIS IS A LOT DIFFERENT THAN WHAT WE'VE SEEN IN THE PAST.
AS YOU CAN SEE THAT COLUMN, WE'RE GENERALLY IN THE THREE TO FOUR AND A HALF MIL INCREASE RANGE THIS YEAR IS IT'S A BIT DIFFERENT.
SO JUST WANTED TO POINT THAT OUT.
AND THEN OVER TO THE STATE REVENUES, THE TWO CATEGORIES I MENTIONED EARLIER, UH, EFA AND THE TIER THREE LOCAL PROPERTY TAX RELIEF.
SO BASED ON THE STATE DEPARTMENT OF EDUCATION'S A BUDGET PROPOSAL TO THE LEGISLATURE, THERE IS A PROPOSAL TO RAISE THE BASE STUDENT COSTS, WHICH IS ONE COMPONENT OF THE EFA CALCULATION FROM $2,516 PER STUDENT WEIGHTED STUDENT TO 25 46 RECALL, UM, THIS POT OF MONEY IS ABOUT $18 MILLION FOR THE SCHOOL DISTRICT.
UH, IT WOULD EQUATE TO ABOUT 18 MILLION IN THIS FORMULA.
UM, BUT WE DO RECEIVE ONLY ABOUT 25% RECEIVES ABOUT 25% OF THAT BASED STUDENT COST BECAUSE OF OUR INDEX OF TAX, PAYING ABILITY, THE INDEX OF WEALTH AND DISTRICTS IN THE STATE, UM, BUFORD HAVING ONE OF THE HIGHEST WEALTHIEST IN TERMS OF ASSESSED VALUES OF PROPERTIES AND THE COUNTY, UM, TYPICALLY RECEIVES THE LOWEST STATE FUNDING PERCENTAGE OF STATE FUNDING IN THE STATE OF SOUTH CAROLINA.
BUT FORTUNATELY, UM, OUR ESTIMATES SHOW THAT THIS WOULD INCREASE OUR REVENUE IN THAT CATEGORY, UM, BY $735,000.
SO, UM, THAT IS POSITIVE, UH, SALES TAX REIMBURSEMENT.
THIS IS DO, THIS IS ABOUT $49 MILLION.
SO IT IS A SIGNIFICANT IT'S ABOUT HALF OF THE TOTAL STATE REVENUE PER SEAT.
UH, WE WERE INFORMED BY THE STATE, I BELIEVE IT'S THE FISCAL AFFAIRS OFFICE OR DEPARTMENT OF REVENUE.
ONE OF THOSE, UM, STATE OFFICIALS INDICATED AN INCREASE OF 1 MILLION, $1.7 MILLION.
SO THAT IS A FAVORABLE INCREASE.
AND THAT IS AGAIN, DUE TO ACT THREE EIGHT, THAT'S WHERE THEY REMOVED, UM, SCHOOL OPERATING TAXES FROM LEGAL RESIDENCES, AND INSTEAD REPLACED IT WITH THE ONE SET OF SALES TAX.
THOSE ARE GIVEN, UH, COLLECTED AT THE STATE LEVEL, AND THEN DISPERSED BACK TO ALL THE SCHOOL DISTRICTS.
SO THIS IS THAT SOURCE OF FUNDS, UM, AND HOW THAT FLOWS TINA AND WILLIAM SANDS QUESTIONED.
SO CAN YOU GO BACK, UH, ROBIN TO PAGE EIGHT AND, UM, TANYA, THE BANK MILLAGE ROLLED FORWARD, UH, IS THERE A TIME LIMIT ON HOW LONG YOU CAN, UH, GO BACK TO, UH, BANKED MILLAGE AND YES.
UM, THERE IS A THREE YEAR LOOK BACK.
SO IF YOU HAVE BANKED MILLAGE, YOU CAN GO BACK THREE YEARS.
HOWEVER, LAST YEAR WE USE ALL OF OUR LOOK BACK AND ALL OF OUR CURRENT YEAR ALLOWABLE INCREASE.
SO THEREFORE WE HAVE ZERO IN THE BANK.
WE HAVE NO MILLAGE LEFT IN THE BANK AT THIS POINT.
SO WE WILL DO TWO HANDS AGAIN, ANOTHER THREE YEARS.
UM, MY QUESTION WAS GOING TO BE, UM, UH, IN, IN, IN TERMS OF THE, THE, THE INFORMATION THAT SHE HAS, THAT SHE WAS ALREADY, YES, WE'LL GET A COPY OF, DOES THAT, DOES THAT AFFECT THE, THE, THE BUDGET IN ANY WAY, SHAPE OR FORM? UM, WHAT WE RECEIVE IS A LETTER STATING THE CPI RATE, AND THEN WE HAVE TO END AND MAYBE A LISTING OF EVERY OTHER SCHOOL DISTRICTS RATE.
UH, AND THOSE ARE ALSO POSTED ON THE REVENUE AND THE FISCAL AFFAIRS WEBSITES.
[00:35:01]
IT'S, IT'S ALSO AVAILABLE VARIABLE THERE, BUT, UH, WE JUST TAKE THAT INFORMATION AND APPLY IT TO THESE FORMULAS AND THEN PROVIDE THAT TO BOARD.BUT MY QUESTION WAS THAT US, AND IN TERMS OF US COMING UP WITH DIFFERENT THINGS IN TERMS OF THE YEAR, I MEAN, I MEAN THE BUDGET WHEN WE HAVE THOSE MEETINGS, IT, UH, DOES THAT DETERMINE THE BUDGET IN ANY WAY, SHAPE OR FORM HAS BEEN MORE OF MY QUESTIONS? ABSOLUTELY.
THE MILLAGE INCREASE A ALLOWABLE INCREASE WOULD, IS THEM MULTIPLIED BY THE, OF A MILL.
SO IF A MILL IS A $1.3 MILLION, THAT GIVES US THE TOTAL TAX REVENUE BUDGET THAT WE'RE ASSUMING FOR THE NEW YEAR.
SO THAT IS DIRECTLY RELATED TO THE NEXT YEAR'S BUDGET.
SO ONE THING I WANT TO DO EACH TIME I'VE COME TO THE COMMITTEE OR TO THE WAR IS TO UPDATE YOU ON ANY LEGISLATIVE ISSUES.
UM, I REALLY, UH, TAKEN AN INTEREST SORT OF TO THE LEGISLATURE THIS YEAR.
AND, UM, THAT'S ACTUALLY VERY INTERESTING.
THERE'S AN APP CALLED SE LEGISLATURE.
IF YOU HAVEN'T GOTTEN ON IT AND YOU CAN ACTUALLY FOLLOW COMMITTEES OR FOLLOW MEMBERS OF THE LEGISLATURE.
AND I AM FOLLOWING THE HOUSE WAYS AND MEANS, AND THE SENATE FINANCE COMMITTEE, UM, IN CASE ANY EDUCATION RELATED OR FUNDING, EDUCATION, FUNDING RELATED BILLS COME UP, UM, I CAN KEEP TRACK OF SORT OF SOME OF THE THINGS THAT ARE GOING ON AND YOU CAN WATCH THE VIDEOS AND THE RECORDINGS OF THE, UH, THE SESSION.
SO IT'S RATHER INTERESTING, BUT THERE'S TWO BUDGET STATE BUDGET PRIORITIES, TWO VERSIONS OF THAT THIS YEAR, WE'RE LEARNING REGARDING EDUCATION FUNDING.
THE STATE SUPERINTENDENT ALWAYS PROPOSES A BUDGET ON BEHALF OF THE DEPARTMENT OF EDUCATION.
AND THAT IS A 2% SALARY INCREASE FOR NEXT YEAR.
A $30 INCREASE IN BASE STUDENT COSTS, WHICH I REFERRED TO A FEW SLIDES AGO AND A 5% BUS DRIVER INCREASE.
AND THOSE ARE ON THE STATE MINIMUM SALARY SCHEDULE.
NOW THERE IS A SLEW OF OTHER PRIORITIES, UM, AND, UH, BUT THESE RELATED, PARTICULARLY TO, UH, AREAS OF PARTICULAR INTEREST, UH, THAT WOULD HAVE, UH, A LARGE EFFECT ON OUR BUDGET.
UM, IN, IN CONTRAST, THE GOVERNOR HAS PROPOSED, UM, SOME PRIORITIES.
ONE IS TO PROVIDE A $2,000 SET TEACHER SALARY INCREASE.
AND IF YOU RECALL THIS PAST YEAR, WE HAD A $1,000 FOR THE, IN THE CURRENT BUDGET YEAR.
WE HAVE A $1,000 INCREASE IN OUR SALARY SCHEDULE, WHICH WE IMPLEMENTED, UH, ON THE FIRST PAYCHECK OF THE SCHOOL YEAR.
SO, UM, I'M NOT SURE WHICH ONE WILL, UM, MAINTAIN IN THE BUDGET OR BE TASKED, BUT WE WILL BE ACTIVELY LOOKING OUT AT BOTH OF THOSE.
UM, A 2% TEACHER SALARY IN PLACE WOULD BE CLOSER TO A 4% INCREASE COST OF LIVING INCREASE AS OPPOSED TO THE 2%, UM, PROPOSED BY THE STATE SUPERINTENDENT.
SO THAT'LL BE INTERESTING CONVERSATION.
UM, AND SO WE WILL KEEP IN TUNE WITH WHAT'S GOING ON THERE, BUT ANOTHER MAJOR COMPONENT, UH, I WENT TO A STATE MEETING A FEW WEEKS AGO AND, UH, BEEN READING UP, UH, AND THERE IS A PROPOSAL FOR A NEW EDUCATION FUNDING FORMULA.
SO, UH, IT'S COMING OUT OF THE DEPARTMENT OF ADMINISTRATION, UH, AND THEY ARE ROLLING TOGETHER MULTIPLE E F A N E I A FUNDS AND CALCULATING MORE ON A SIMPLIFIED CALCULATION AS OPPOSED TO THE TYPICAL EFA CALCULATION.
AND IT BASES IT MORE ON THE COST OF A TEACHER.
SO IF IT COMPARES THE WEIGHTED, UH, STUDENT, UH, THE STUDENT NUMBERS AND THE VALUE OF THE COST OF A, THE AVERAGE TEACHER'S SALARY AND BENEFITS AND FUNDS IT MORE, UM, ON THE, WITH A GOAL OF FOCUSING ON THOSE AREAS, INSTEAD OF PARTICULAR AREAS OF INTEREST, UH, THAT ARE SPECIFIC TO DIFFERENT EDUCATIONAL CATEGORIES, SUCH AS GIFTED AND TALENTED, OR, UM, ESL OR OTHER, OTHER ELEMENTS OF THE FORMAT OF OUR OTHER FUNDING SOURCES LIKE THOSE ARE.
[00:40:01]
UH, WE HAVE, WE HAVE, UH, THE FORMULA THAT THEY'RE USING AND DOING OUR BEST TO PROJECT, WHAT THE EFFECTS OF THAT MIGHT BE ON OUR REVENUES.SO WE'RE WATCHING THAT CLOSELY TO SEE IF THAT, UM, HAS ANY LEGISLATIVE SUPPORT THIS YEAR.
UM, IT APPEARS THAT, UH, WE WOULD, UH, MIGHT BENEFIT FROM THE FORMULA.
THEY ARE CHANGING THE WEIGHTED PUPIL, THE WEIGHTINGS, UH, PARTICULARLY SOME OF THE SPECIAL EDUCATION CATEGORIES.
AND BUFORD DOES HAVE A, I THINK A 12% POPULATION OR SO, UM, SO THAT WE MAY, UM, IT APPEARS THAT WE WOULD NOT, UM, HARMED BY THE FORMULA AT THIS TIME, BUT WE'RE CONTINUING TO FINE TUNE THOSE CALCULATIONS.
SO WE'LL KEEP THE BOARD INFORMED OF, OF HOW THOSE DISCUSSIONS, UM, HOW THEY GO.
SO THE NEXT STEPS, UM, ARE THAT WE ARE GOING TO BE SEEKING INPUT FROM THE BOARD AND THE COMMUNITY ON OUR, OF BUDGET PRIORITIES.
UM, WE ARE, UM, WORKING NOW WITH, UH, VARIOUS, UM, STAFF MEMBERS, SENIOR STAFF, BUT POTENTIALLY TO DETERMINE HOW THIS IS THE BEST WAY TO, TO GATHER THAT INPUT.
UM, WE'RE, WE'RE MONITORING THE LOCAL REVENUES THROUGH THE TAX AND AT THE CURRENT YEAR REVENUES AND HOW THOSE ARE COMING IN, THEN WE'RE PROJECTING AS SOON AS THEN WE'LL BEGIN TO PROJECT THE CURRENT AND FUTURE REVENUES, MONITORS MONITOR LEGISLATIVE ISSUES, AND WE'RE GOING TO CONTINUE PREPARING THE BUDGET AND THE STAFFING AND PUTTING ALL OF THOSE THINGS TOGETHER.
SO, UH, I PUT THE BUDGET SCHEDULE UP HERE FOR THE BOARD, BUT IN YOUR, UM, UH, PROMOTED BOARD CALENDAR, UM, YOU, AND, UM, WITH THAT, I WILL TAKE ANY QUESTIONS, QUESTIONS.
UM, TANYA, I GUESS WANTED TO MAKE A SUGGESTION.
ONE OF THE THINGS THAT I'M HEARING FROM CONSTITUENTS AND OTHER MEMBERS OF THE PUBLIC THAT ARE COMING UP, AND THEY'RE ASKING ABOUT THE SR FUNDS AND THINGS LIKE THAT, THEY WANT UPDATES ON IT, HOW MUCH MONEY DID WE GET? YOU KNOW, ARE WE ROLLING IT INTO OUR FUND BALANCE? I'LL BE ABLE TO ROLL IT INTO OUR FUND BALANCE.
AND THEY'RE UNDER CERTAIN KINDS OF IMPRESSIONS BASED ON WHAT KIND OF DISCUSSION THAT THEY'RE HAVING WITH THEIR FRIENDS AND COMMUNITY MEMBERS.
SO I GUESS THE SUGGESTION OR THE QUESTION THAT I HAVE IS CAN WE PERHAPS ADD, UM, WHEN WE'RE SEEKING INPUT FROM THE COMMUNITY, UM, OR MAYBE PRESENTING THIS IN THE FUTURE THAT WE ADD A COMPONENT THAT TALKS ABOUT OR TOUCHES ON THOSE SR AND CARE DOLLARS AND HOW THEY HAVE ANYTHING TO DO WITH OUR YEARLY BUDGET, JUST SO THAT PEOPLE AREN'T UNDER ANY MISCONCEPTION THAT, YOU KNOW, WE'VE GOT A TON OF MONEY WE'RE ROLLING INTO OUR FUND BALANCE OR SOMETHING LIKE THAT.
UM, I, I PROBABLY WOULD NEED TO HAVE A CONVERSATION WITH YOU TO UNDERSTAND, UM, MAYBE IT GETS MY IDEAS ON HOW TO, UM, I GUESS WHAT QUESTIONS TO ASK OR WHAT INFORMATION PERHAPS IT'S JUST INFORMATIONAL, UM, THAT WE ADD TO MAYBE A SURVEY OR SOMETHING TO THAT POINT.
UM, WE, WE DID GO OUT, UH, PROVIDE SURVEYS OR, OR MEN MANDATED BY THE STATE TO, UM, DO ESTHER, UH, FUNDING SURVEYS AND GAIN PUBLIC INPUT FROM THOSE WHICH WE DID A FEW MONTHS BACK.
UM, AND YOU'RE RIGHT, THE ESTHER FUNDS AND THE GENERAL FUND, OR TWO TOTALLY DIFFERENT FUNDING SOURCES, WHICH MUST BE KEPT SEPARATE AS HER FUNDS ARE VERY RESTRICTED WITH ONLY CERTAIN ALLOW CATEGORIES.
UM, AND THEN THEY DO, WE DO UPDATE THE BOARD, UH, AS YOU ALL KNOW, UM, ONCE A MONTH NOW ON THE SECOND BOARD MEETING OF EACH MONTH PROVIDE A SPECIFIC REPORT.
AND IT IS ALSO ON OUR WEBSITE, UM, FOR A VIEWING OF, OF THE CATEGORIES OF SPENDING.
BUT EXTRA FUNDS CANNOT GO INTO THE GENERAL FUND FUND BALANCE, UM, AND VICE VERSA, NOR CAN THE FUNDS CROSSOVER AND BE SPENT, UM, IN THE OTHER AREAS, UNLESS, UH, THERE ARE CERTAIN RESTRICTED, THEY FALL WITHIN THE RESTRICTED CATEGORIES, BUT PERHAPS WE COULD PUT SOME INFORMATIONAL TEXTS IN THE SURVEY TO JUST PROVIDE SOME DATA, UM,
[00:45:01]
OR, YOU KNOW, IF IT WERE NOT ALLOWED AND THE SR FUNDS, IS THERE SOMETHING IN PARTICULAR THAT YOU WOULD LIKE TO SEE OR PRIORITY AS A PRIORITY IN THE GENERAL FUND? SO, YEAH, I THINK, I THINK THE MAIN THING IS, IS THAT, UM, UH, AND THAT SURVEY THAT WENT OUT GATHERED THE INPUT.I THINK MY MAIN CONCERN IS MAKING SURE THAT THE CONSTITUENCY IS EDUCATED ON THE, THE ALLOWABLE USES FOR THE SR FUNDS AND HOW THEY MAY OR MAY NOT HAVE IMPACTED OUR BUDGET JUST FOR FUTURE YEARS.
AND THE CASE THAT THERE IS GOING TO BE AN ASK FOR A MILLAGE INCREASE OR ANYTHING LIKE THAT.
IF WE BEGIN HAVING THOSE DISCUSSIONS AND PEOPLE THINK, OR MISUNDERSTAND THOSE ALLOWABLE USES, IT CAN CAUSE, UM, A LOT OF HEADACHES I THINK, IN THE PUBLIC AND, AND WE DON'T WANT ANYBODY TO BE MISINFORMED OF THOSE ALLOWABLE USES AND HOW WE ARE USING THE FUNDS THAT ARE COMING TO US FROM EITHER LOCAL STATE OR FEDERAL.
SO I JUST THINK IT'S VERY IMPORTANT THAT WE DO PROVIDE SOME TYPE OF EDUCATION ON THAT.
I DIDN'T MEAN TO INTERRUPT YOU AT, PERHAPS WHEN WE, UH, WE'LL BE GOING TO COUNTY COUNCIL TO THEIR FINANCE COMMITTEE, UM, PROBABLY IN LATE MARCH OR EARLY APRIL, THAT'S PROBABLY A PERFECT OPPORTUNITY FOR US TO GIVE A BRIEF UPDATE ON THE ALLOWABLE ACTIVITIES, WHAT OUR PROGRESS IS, WHAT REVENUES, UM, WHAT ALLOCATIONS WE'VE RECEIVED, BUT ALLOCATIONS, UH, CATEGORY ALLOWABLE ACTIVITIES, UH, WE HAVE, AND THAT MIGHT BE A PERFECT OPPORTUNITY TO START WITH THAT DISCUSSION AS WE, UM, ROLL INTO THE GENERAL FUND BUDGET DISCUSSION.
I APPRECIATE YOU ENTERTAINING ME.
AND MOVE TO A BUDGET PROPOSAL THAT I ASKED TO TALK TO THE COMMITTEE ABOUT.
AND IF YOU'RE PRO BACK, KEEP IT ON THAT SLIDE BACK TO PAGE FOUR.
UM, SINCE I CAME ON THE BOARD 2019, I LOOKED AT, IF YOU LOOK AT 2019 AND YOU SEE WHERE WE HAD THE MAJOR DROP IN REVENUE DUE TO THE REASSESSMENT THAT CAUSED US TO DEAL WITH THAT.
PLUS YOU'LL SEE THAT WE ALSO HAD A SHORTFALL IN PREVIOUS REASSESSMENT YEARS.
YOU CAN SEE I'M ON THE CHART THERE TOO ENOUGH TOTAL OF $19 MILLION.
RIGHT NOW WE HAVE, WE HAD TO TAKE CARE OF THAT.
WE HAD TO COPE WITH THAT BY TAKING IT OUT OF OUR FUND BALANCE.
AND SO NOW SINCE 2019, WE HAVE COME BACK WITH OUR FUND BALANCE AND WE ARE NOW AT APPROXIMATELY $50 MILLION IN FUND BALANCE, WHICH IS ABOUT 20% OF OUR ANNUAL BUDGET, WHICH IS ACCORDING TO GASPE THE LAWS.
SO TO SPEAK OF GOVERNMENT FINANCE, THAT'S ABOUT WHERE YOU SHOULD BE.
IT SHOULDN'T BE MUCH MORE THAN THAT I'VE SAID IN THE PAST THAT I COULD MAKE A CASE THAT WE SHOULD HAVE MORE, UH, SO THAT WE DON'T HAVE TO USE A TAN TO TIDE US OVER, UH, BECAUSE OF OUR WAY OUR FUNDING COMES IN, BUT HAVING BRIEF THE COUNTY COUNCIL NOW FOR TWO YEARS ON A BUDGET PROCESS, IT COMES UP EVERY TIME.
WELL YOU CAN, WHAT WERE THE MILLAGE RATE AND REDUCE YOUR FUND BALANCE? THAT THAT IS NOT WHAT WE CAN DO, BECAUSE IF WE REDUCE OUR FUND BALANCE, ALL WE DO IS AFTER INCREASE THE TAN AND WE HAVE TO USE WHAT MONIES WE DON'T SPEND EVERY YEAR TO REBUILD OUR FUND BALANCE.
SO THAT'S A DISCUSSION WHERE DO WE GET THIS MONEY THAT HAS ALLOWED US WITHIN SINCE 2019 TO REBUILD OUR FUND BALANCE? NOW, OBVIOUSLY COVID HAS HAD AN IMPACT.
PART OF THE IMPACT HAS BEEN WHEN WE HAD TO SHUT EVERYTHING DOWN, WE DIDN'T
[00:50:01]
PAY MUCH FOR UTILITIES AND OTHER THINGS.WE SAVE SOME MONEY THERE, BUT THIS IS VERY, VERY IMPORTANT.
AND THIS IS WHAT YOU TO ALSO TALK TO YOUR CONSTITUENTS ABOUT, ABOUT EXTRA FUNDS.
80% OF OUR BUDGET, 80% OF OUR BUDGET IS SALARY AND BENEFITS, SALARY, AND BENEFITS, THAT'S SALARY AND BENEFITS FOR OUR CONTRACT EMPLOYEES.
WE PAID THAT'S THE UP TO THE CONTRACTOR TO TAKE CARE OF SALARY AND BENEFITS.
WE DON'T PAY FOR HIS SALARIES AND BENEFITS.
SO FOR OUR WHAT, 4,400 EMPLOYEES, 2700 2744 WITH OUR CONTRACT.
SO OUR 2,700 EMPLOYEES, WHICH WHEN YOU STOP AND LOOK AT IT, EACH EMPLOYEE COSTS A SIGNIFICANT AMOUNT OF MONEY.
AND YOU KNOW HOW WE BUILD OUR BUDGET.
WE BUILD OUR BUDGET, STARTING WITH SPACES.
WE SAY, WE NEED X NUMBER OF EMPLOYEES IN THESE PARTICULAR AREAS.
AND EACH OF THOSE EMPLOYEES HAS A SALARY ALLOTTED TO THEM.
NOW YOU HAVE TO, THE SALARIES HAVE TO BE SO MUCH FLEXIBLE IN YOUR BUDGETING.
BECAUSE FOR EXAMPLE, WHEN WE RECRUIT A TEACHER, WE DON'T KNOW IF THAT TEACHER HAS A MASTER'S DEGREE OR A PHD.
AND SO THERE IS NO GENERIC STARTING SALARY, AND WE DON'T KNOW HOW LONG THEY'VE BEEN TEACHING, WHAT STEP THEY'RE AT.
SO IT'S, THAT'S A VARIABLE, IT'S A LITTLE EASIER WITH, UH, THE OTHER EMPLOYEES.
THEY COME IN TO A POSITION THAT SLATED FOR THIS SALARY, AND THAT'S HOW THE BUDGET IS BUILT.
EVERY MONTH WE SEE THE PERSONAL RATIFICATION REPORT AND YOU COULD SEE THAT AT THE FIRST OF THE YEAR, WE'RE HIRING LOTS OF FOLKS.
AND WE'VE HAD FEWER FOLKS THAT HAVE, YOU KNOW, RETIRED OR DONE ON TO OTHER THINGS.
BUT THEN THROUGH THE YEAR, WE HAVE MORE PEOPLE THAT DROP OUT OR RESIGN OR TERMINATED AND FEWER PEOPLE HIRED.
SO WHEN YOU LOOK AT IT, WHERE ARE WE HAVE MADE UP OUR SAVINGS TO INCREASE OUR FUND BALANCE IS FROM NON SPENT SALARIES AND BENEFITS.
THAT'S WHERE THAT MONEY HAS COME FROM.
AND THAT'S GOING TO HAPPEN EVERY YEAR.
NOW WHAT'S THE IMPACT OF THAT? WELL, THE IMPACT, IF YOU LOOK AT IT FROM A MACRO VIEW, YOU CAN SAY, WELL, YOU'VE BUDGETED TOO MUCH.
WE JUST HAD THE NORMAL EBBS AND FLOWS OF EMPLOYEES THAT EVERY COMPANY INSTITUTION HAS.
HOWEVER, WE NOW HAVE WE'RE NOW AT WHERE WE SHOULD BE FOR THEIR FUND BALANCE.
THAT MEANS THAT AT THE END OF THIS FISCAL YEAR, WE SHOULD NOT HAVE ANY MONEY LEFT OVER.
OR IF WE HAVE, WE HAVE JUST A LITTLE BIT, SO WE CAN PAY FOR UNFORESEEN THINGS THAT WERE PURCHASED IN THIS FISCAL YEAR, BUT YOU HAVE TO PAY FOR SOME OF EVENT IN THE NEXT FISCAL YEAR.
SO YOU HAVE TO HAVE A LITTLE BIT OF THAT.
SO WE ARE AT A DIFFERENT MODE OF HOW WE EXECUTE THIS YEAR'S BUDGET.
WHEN WE GO TO COUNTY COUNCIL, WE SAY, WE SPEND IT ALL BABY.
AND THIS IS WHAT WE NEED FOR NEXT YEAR.
SO HOW DO WE DO THAT? WELL, THIS IS WHAT MY PROPOSAL IS AND SHOW THAT I'M GOING TO GIVE A LITTLE GRAPHIC DESIGN WORK AND HOPEFULLY IT WORKS.
[00:55:06]
YOU SHOULD SEE ON YOUR SCREEN, A YELLOW CIRCLE, ROBIN.YOU DIDN'T SCREEN SHARE IT YET.
SO YOU HAVE TO START IT OVER AGAIN.
THIS, THIS IS OUR OPERATING BUDGET, OUR GENERAL FUND, SO TO SPEAK, OKAY.
SO 80% OF OUR GENERAL FUND IS SALARIES AND BENEFITS.
WE DON'T SPEND ALL THAT MONEY.
SO WHAT SHOULD WE DO WITH THAT? WHAT SHOULD WE SHOULD DO WITH THAT? LET US, FIRST OF ALL, LET'S TALK ABOUT THE IMPACT OF NOT SPENDING ALL OUR SALARIES AND BENEFITS.
THAT MEANS WE DON'T HAVE ALL THE POSITIONS THAT WE BUDGETED FOR.
SO THAT MEANS THAT SOMEBODY IS DOING EXTRA WORK.
THAT MEANS THAT OUR TEACHERS HAVE BIGGER CLASS SIZES.
THAT MEANS THAT WE HAVE MECHANICS THAT ARE WORKING OVER TIME TO DO MORE, THAT WE HAVE, UH, ADMINISTRATORS THAT ARE WORKING LONGER HOURS TO TAKE UP THE SLACK.
SO MY PROPOSAL IS THAT WE TAKE THIS SALARIES AND BENEFITS AND WE BREAK IT OUT AND TWO POTS OF MONEY BY EMPLOYEES.
AND WE SAY, OKAY, AT THE END OF THE YEAR IN JUNE, IN JUNE, WE KNOW WE HAVE X NUMBER OF DOLLARS.
LET'S, LET'S JUST SAY $8 MILLION.
WE HAVE TEACHERS THAT WE WERE SHORT.
WE BUDGETED FOR, FOR TEACHERS.
AND LET'S SAY, AND TEACHERS, WE HAVE $2 MILLION AND, AND THE POT OF MONEY FOR CERTIFIED STAFF.
WE HAVE HALF A MILLION AND LET'S SAY FOR ALL OTHERS, AND THERE'S MANY, THERE'S MANY MORE CIRCLES I COULD DRIVE.
I CAN HAVE, UH, HOURLY EMPLOYEES AND SO ON.
BUT EACH ONE OF THOSE GETS A POT OF MONEY.
WHAT I'M PROPOSING IS THAT IN JUNE, WE TAKE THIS $2 MILLION THIS RIGHT HERE, AND WE GIVE IT TO OUR TEACHERS AS THEY END OF YEAR BONUS.
SO AT THAT COMPENSATES THEM FOR HAVING A BIGGER CLASS SIZE.
YOU HAVE A BIG CLASS SIZE, YOU GOT MORE TESTS TO GRADE, YOU'VE GOT MORE PAPERS TO REVIEW.
IF YOU HAVE MONEY AND THE OTHER POTS OF MONEY, YOU GIVE THEM TO THOSE EMPLOYEES.
NOW, NICE THING ABOUT THE TEACHER IN OUR OPERATION FUND, WE HAVE A SLICE OF MONEY FOR SUBSTITUTE TEACHERS.
WELL, JUNE, WE'RE NOT GOING TO NEED ANY MORE SUBSTITUTE TEACHERS.
[01:00:01]
HAVE LEFT OVER AND YOU ADD IT TO THE TEACHERS, A LITTLE INCENTIVE, NOT TO USE SUBSTITUTES.THE BOTTOM LINE IS AT THE END END.
OH, BY THE WAY, THERE'S STILL SOME MONEY IN HERE AS WELL IN THE OPERATING FUNDS AND THEN MAINTENANCE AND SO ON.
WHAT DO WE DO WITH THAT? AND THAT'S TO GO TO OPERATIONS COMMITTEE, TO, UH, ROBERT ADI AND SAY, OKAY, WHAT ARE YOU WANTING TO DO? BUT YOU WEREN'T BUDGETED TO DO THIS YEAR THAT SPEND IT.
SO THE BOTTOM LINE IS AT THE END OF THE FISCAL YEAR, YOU'VE SPENT ALL THE MONEY BECAUSE WE DON'T WANT TO ADD TO OUR FUND BALANCE.
SO THAT'S WHAT I, THAT'S THE WAY WE HANDLE THINGS.
AND THE FEDERAL GOVERNMENT, WE SPEND IT ALL.
SO SPEND IT ALL IS WHAT I'M SAYING.
NOW NEXT YEAR, I THINK WE SHOULD HAVE THE SAME KIND OF MINDSET, SPEND IT ALL.
ONE OF THE PROBLEMS WE HAVE IS FOR LAST FIVE YEARS, LET'S GO TO, LET'S GO TO, LET'S GO TO FULL SCREEN OR DOING REGULAR SCREEN.
SO AT THE END, UH, NEXT YEAR FOR FIVE YEARS, WE'VE BEEN GIVEN, WE'VE GIVEN OUR EMPLOYEES A $5,000 LOCALITY PAY.
THE EMPLOYEES LIKE TO GET HALF OF IT JUST BEFORE CHRISTMAS AND HALF OF IT AT THE END OF THE YEAR, BUT THERE'S, THERE'S TWO PROBLEMS WITH IT.
ONE PROBLEM IS WHEN WE COMPARE OUR TEACHER SALARY ACROSS THE STATE, WE DON'T INCLUDE THAT.
AND SO THAT'S WHY WE GET THE TEACHERS GROUP TO COME IN AND SAY, WELL, YOU'RE AT THE BOTTOM THIRD IN SALARIES IN THE STATE.
WELL, NOT REALLY BECAUSE WE HAD $5,000, BUT THAT'S NOT REPORTED IN A, IS OUR TEACHER'S SALARY.
IT'S ALSO AN ISSUE WHEN YOU GO OUT AND RECRUIT TEACHERS AND YOU SAY, OKAY, WE'RE GOING TO START YOU OUT AT 35,000 A YEAR, BUT WE'RE GOING TO GIVE YOU A $5,000 COST OF LIVING.
IF I, SOMEBODY THAT'S BEING RECRUITED, WAIT A MINUTE, I GOT YOU.
GIVE ME AN EXTRA $5,000 COST OF LIVING.
IT MUST MEAN STUFF IS EXPENSIVE TO LIVE THERE.
THE OTHER ISSUE, THE NEGATIVE PART OF THAT IS WE DON'T PAY ANY BENEFITS ON THAT $5,000.
SO WE DON'T PAY ANY FICA OR YOU DON'T PAY ANY UNEMPLOYMENT.
WE GIVE THEM $5,000 AND THEN THEY HAVE, THEY HAVE TO REPORT THAT TO THE IRS.
AND I GUESS WE PUT IT IN OUR W2, BUT IT ALSO DOES NOT COUNT TOWARD RETIREMENT.
SO WHAT I'M SAYING IS, SO WE'VE ALREADY BEEN BUDGETING THIS EVERY YEAR.
SO IT'S A, IT'S NOT A RECURRING COST IT'S.
I WOULD PROPOSE THAT WE SAY, OKAY, THERE'S $5,000 ADDED TO EVERYBODY'S BASE PAY.
AND IT'S GOING TO COST US A LITTLE MORE MONEY ABOUT WHAT $2 MILLION, ABOUT $2 MILLION MORE, BECAUSE WE HAVE TO PAY BENEFITS ON THAT, BUT IT BRINGS UP WHAT OUR PAY IS.
AND IF YOU USE THIS END OF YEAR MONEY BEING RETURNED TO EMPLOYEES BY IT, YOU'RE SAYING, LISTEN, WE'LL STILL GIVE YOU.
IF YOU DON'T SPEND EVERYTHING IN YOUR POT OF MONEY, YOU'RE GOING TO GET THAT AT THE END OF THE YEAR.
AND WE CONTINUE TO SPEND EVERYTHING THAT WE BUDGET.
AND THE QUESTION IS, IS NOW HOW DO WE MAKE SURE THAT WE DON'T HAVE ANOTHER MAJOR DROP IN REVENUE AT REASSESSMENT?
[01:05:01]
AND THAT'S WHY ONE OF THE REASON WHY FISCAL AUTONOMY IS WHAT WE NEED, BECAUSE AS I'VE LOOKED BACK ON ALL THE RECORDS FOR EVERY YEAR, DURING REASSESSMENT YEAR, WHAT THE DISTRICT ASKED FOR WHAT HAVE GENERATED THE MONEY THAT WAS BUDGETED, BUT WHAT THE DISTRICT ASKED FOR WAS NOT WHAT THE DISTRICT GOT IN MILLAGE.SO THAT'S WHY FISCAL AUTONOMY IS IMPORTANT BECAUSE IF WE WOULD'VE GOTTEN, WHEN WE ASKED FOR, WE WOULDN'T HAVE HAD A $19 MILLION DEFICIT.
SO THAT'S THE PROPOSAL THAT I WOULD LIKE YOU ALL TO THINK ABOUT OR ASK ANY, FIRST OF ALL, IF YOU HAVE ANY QUESTIONS, I'LL ANSWER ANY QUESTIONS.
SO I SEE DAVID'S HAND, DAVID, THANK YOU, DEREK.
UM, I THINK THE END RESULT YOU'RE GOING FOR IS REALLY GOOD, BUT I CAN ASSURE YOU THAT IN MY DISTRICT SAYING, SPEND IT ALL BECAUSE THAT'S THE GOVERNMENT MODEL IS A DEATH BLOW, UM, TO IT.
UM, SO SOMEHOW WE HAVE TO SELL THIS WITHOUT SAYING THAT, UM, THAT THAT'S, IT'S JUST TOO MUCH, UH, TOO MUCH FEELING IN IT.
I THINK IT'S IN MOST OF THE COUNTY THAT WE DON'T WANT TO FOLLOW THE FEDERAL MODEL BECAUSE, YOU KNOW, SPENDING IT ALL AS A BAD, A BAD THING.
UM, I THINK WE NEED TO SELL THIS BY SAYING WE HAVE TO, WE HAVE TO REWARD THE TEACHERS AND WE'RE LOOKING AROUND AT WAYS TO DO IT.
UM, SO THAT'S JUST A COMMENT ON, ON OUR SALES PITCH.
UM, MY COMMENT AND CONCERNS ARE PREDOMINANTLY IN THE MODEL BEING PENSIONABLE.
UM, I, I THINK LONG-TERM WHAT WE'RE LOOKING AT.
AND THE ISSUE THAT WE'RE FACING IS WE HAVE A DECREASED AMOUNT OF DISCRETIONARY SPENDING BECAUSE THERE, THERE IS AN INCREASED AMOUNT OF RISING BENEFIT COSTS AND PENSION COSTS.
SO I'M CONCERNED THAT IF WE'RE GOING TO PUT IN PLAY A MODEL, THAT'S GOING TO BE, UH, PENSIONABLE THAT WE'RE JUST EXACERBATING THE ISSUE LONG-TERM FOR THE DISTRICT.
I THINK THAT IF WE'RE GOING TO DO A MODEL LIKE THIS, I WOULD ADVOCATE FOR IT TO BE NON PENSIONABLE.
AND I ALSO WOULD ADVOCATE THAT OUR LEGISLATIVE COMMITTEE IN OUR DISTRICT, UM, OR SCHOOL BOARD LOOK AT, YOU KNOW, SOME TYPE OF POLICY RECOMMENDATIONS AT THE STATE LEVEL THAT DEAL WITH THE OVERARCHING PROBLEM OF THE RISING BENEFIT COSTS AND PENSION COSTS.
I KNOW THAT THAT'S A STICKY ROAD, UM, AND A LOT OF PEOPLE HAVE OPINIONS ON IT, BUT I MEAN, MOST OF OUR TEACHERS, UH, OR THE PEOPLE THAT ARE NEW TEACHERS, UM, THEY'D RATHER HAVE MORE MONEY IN THEIR POCKET AT THE MOMENT.
I MEAN, THAT'S WHAT MOST OF THE SURVEYS THAT I'VE READ SAY THAT THEY WOULD PREFER TO HAVE MORE CASH IN THE BANK AND CASH IN THEIR POCKET, AND THEY ARE CONCERNED ABOUT THEIR PENSION BENEFITS.
SO I JUST THINK THAT'S SOMETHING WE NEED TO THINK ABOUT WHEN WE TALK ABOUT, UM, THIS, THIS PLAN.
THE PROBLEM IS, IS WE'RE ONLY GOING TO GET 25% OF WHAT THE STATE OFFERS.
AND WHEN THEY SAY THEY'RE GOING TO GIVE EACH TEACHER $2,000, WE'RE NOT GOING TO GET $2,000 FOR EVERY FEATURE HAS TO BE A CERTAIN FRACTION FRACTION OF ME.
UM, AND THE OTHER PART OF THE PROBLEM IS WE HAVE A SERIOUS ISSUE AS MARIA WALLS TELLS US ABOUT THE CHANGE FROM 6% TO 4%.
ACCORDING TO MARIA IS PEOPLE THAT ARE SECOND HOMEOWNERS.
SEE THE HOT HOUSING MARKET ARE PUTTING THEIR HOUSES ON THE MARKET.
THE BUYER IS BUYING IT, NOT AS A RENTAL PROPERTY, BUT AS LEGAL RESIDENTS.
AND SO THAT THE GOOD NEWS IS THEY'RE BUYING IT AT A HIGHER PRICE.
SO THAT MAKES A HIGHER ASSESSED VALUE OF THAT PROPERTY.
THE BAD NEWS IS THEY GO FROM 6% TO 4% AND THAT'S GOING TO CAUSE SOME ISSUES.
AND SO I THINK THE VALUE OF THE MILL IS GOING TO GO UP, BUT
[01:10:01]
THE PERCENTAGE OF PEOPLE THAT ARE LEGAL RESIDENTS IS ALSO GOING TO GO UP AND THE FUNDAMENTALS OF ACT 3 88 ARE NOT IN OUR FAVOR.IN FACT, THEY'RE, THEY'RE AGAINST US.
AND SO WE, WE HAVE TO HAVE SOME WAY IN THE LONGTERM TO ADJUST OUR REVENUES AND MAKE THE CASE FOR TEACHERS.
AND THE CASE FOR TEACHERS IS YOU SIX PERCENTERS.
UM, YOU KNOW, I KNOW IT'S TOUGH, BUT WE'RE NOT GOING TO CHANGE THE LAW.
WE CAN TALK TO, WE CAN DO EVERY, ALL THAT LOBBYING WE CAN, BUT WE ARE ONE OF 44 COUNTY, 44 COUNTIES.
AND WE'RE OUT, WE'RE GOING TO BE OUT VOTED EVERY TIME BECAUSE THEY LIKE THE WAY IT IS.
MOST OF THE COUNTIES, LIKE THE WAY IT IS.
SO WE'RE GOING TO HAVE TO LOOK AT A DIFFERENT WAY.
NOW I TALKED TO TANYA EARLIER AND SHE SAID THAT THIS BOTTLE OF HOW THE BUDGET IS TAKEN CARE OF WAS DONE IN THE PAST, WHICH YOU MENTIONED THAT, UM, YEAH.
UM, SEVERAL YEARS AGO THERE WAS A, A TEACHER INCENTIVE MODEL.
UM, IT WAS DEVELOPED BY THE STATE, UH, CALLED CAP.
UM, AND IT WASN'T INCENTIVE-BASED BASED ON PERFORMANCE OR GROWTH IN A SCHOOL.
SO, UH, PARTICULARLY THEY WERE, THERE WAS, UH, A FINITE SET OF DOLLARS, UH, AND IT WAS FUNDED, UH, PARTIALLY FUNDED BY THE STATE WITH A GRADUAL DECLINE PERCENTAGE OF FUNDING, UM, WHERE WE TOOK OVER A LARGER PERCENTAGE EACH YEAR FOR A PERIOD OF FIVE YEARS WITH THE FINAL YEAR BEING, UM, A HUNDRED PERCENT FUNDED BY THE DISTRICT ONCE IT GOT TO THAT POINT.
UM, UNFORTUNATELY IT SUNSETTED, BUT IT WASN'T A PERFORMANCE-BASED MODEL THAT, UH, PROVIDED BONUSES, UH, TO STAFF OF OUR SCHOOLS, NOT JUST TEACHERS, BUT ALL STAFF.
UM, SO, UM, THERE WAS A SIMILAR, UH, THERE WAS, UH, A MODEL IN PLACE AT THAT TIME AND IT STILL EXISTS.
UM, UM, AND WE COULD, YOU KNOW, EXPLORE THAT TO SEE SOME OPTIONS FOR THE NEW YEAR, WHAT THAT MIGHT LOOK LIKE.
SO JUST FOOD, THIS IS JUST FOOD FOR THOUGHT.
AND I, I AGREE WITH DAVID'S VIEW THAT WE CAN'T SAY WE'RE GOING TO SPEND EVERY DIME, EVEN THOUGH THAT'S EXACTLY WHAT WE SHOULD BE DOING.
UM, THE BIG THING TO ME IS THAT WE, WE CANNOT CONTINUE TO BUILD OUR FUND BALANCE AND TO TAKE THE RISK OF SAYING, WELL, WE'LL CUT, WE'LL CUT OUR BUDGET UPFRONT TO ANTICIPATE THAT WE'LL COME IN ON TARGET.
AND ESPECIALLY IN TIMES OF UNCERTAINTY, YOU, YOU BUDGET CONCERN BASED ON A CONSERVATIVE VIEW OF REVENUE AND A CONSERVATIVE VIEW OF EXPENDITURES.
AND THAT ALLOWS YOU THE FLEXIBILITY TO DEAL WITH THE UNFORESEEN, UM, THAT'S THAT'S IN BASIS.
WHAT OUR ISSUE IS, IS HOW ARE WE GOING TO EXECUTE THE BUDGET THAT WE DEVELOP BASED ON ASSUMPTIONS, ASSUMPTIONS OF FULL EMPLOYMENT, ASSUMPTIONS OF, UM, THE IMPACT OF INFLATION ASSUMPTIONS ON THE AMOUNT OF REVENUE WE WILL GET IN, IN A TAX SYSTEM THAT ALLOWS PEOPLE TO CHANGE THEIR, UM, TAX STATUS AS WELL, BY THE WAY, AN AD, WHETHER OR NOT THEY'RE GOING TO BE HOMESTEAD.
AND I WISH WE GOT EVERY DIME THAT WAS, UH, THAT THE HOMESTEAD ACT TAKES AWAY, BUT WE DON'T.
UM, SO THE STATE'S, THE STATE'S NOT GOING TO BAIL US OUT.
AND WE HA I THINK WE HAVE TO REALIZE THAT.
AND SO WHO DOES THAT FALL ON? WELL, IT FALLS ON A TAX PAYER.
[01:15:01]
TELL THE TAXPAYER THAT WE ARE STEWARDS OF THEIR FUNDS AND THAT WE'RE NOT GOING TO OVERTAX THEM? SO THAT'S, THAT'S THE CHALLENGE.WHO IS IT? DAVID? DAVID'S ON MUTE DAVIDSON.
SO THAT WAS IT A FUTURE TOPICS WE HAVE FUTURE TOPICS.
CROSS YOU HAVE ANY FUTURE TOPICS, NOT AT THIS TIME.
YOU HAVE ANY FUTURE TOPICS? NOT AT THIS TIME.
I, I DON'T, UH, TANYA HAS, I HAVE A LIST, UM, MINORITY WOMEN BUSINESS ENTERPRISE, AND SOLE SOURCE REPORT.
I HAVE THESE IN A LIST IN AN EMAIL READY TO HIT, SEND TO ROBIN, UM, GRANT AUTHORIZATION.
WE DO AN ANNUAL GRANT AUTHORIZATION RESOLUTION, UH, AND I'LL HAVE ANOTHER BUDGET UPDATE.
DO WE NEED TO TAKE ACTION ON THE QUARTER, SECOND QUARTER FINANCIAL REPORT THAT WILL BE IN THE ANNUAL MONITORING.
SO THAT WILL NO LONGER BE A RAPE OF PERIODIC FOR APPROVAL.
IT WILL GO WITH THE ANNUAL REPORT YESTERDAY, BUT I BELIEVE THAT WE WILL HAVE ON THE AGENDA AND UNDER THE COMMITTEE REPORTS, IF THE QUARTERLY FINANCIAL REPORT WAS REVIEWED BY THE COMMITTEE, AND ARE YOU GOING TO PROVIDE A EXECUTIVE SUMMARY? THE EXECUTIVE OF FIRST PAGE AND A HALF IS THE EXECUTIVE SUMMARY, RIGHT.
AND AS WELL AS WILL YOU GIVE THE ENTIRE, I WOULD GUESS THE ENTIRE BUDGET UPDATE BE GIVEN TO THE FULL BOARD.
IS THERE ANY OBJECTION BY THE COMMITTEE MEMBERS THAT THE BUDGET UPDATE BE GIVEN TO THE FULL BOARD? OKAY.
WHAT ABOUT THE MEETING NEXT MONTH? YES, THE MEETING NEXT MEETING NEXT MONTH, I'M GOING TO BE GONE, UH, FROM THE FIFTH, 4TH OF MARCH UNTIL THE 22ND OF MARCH.
SO I DON'T KNOW IF THERE'S ANY OTHER, UH, PEOPLE THAT ARE GOING TO BE GONE AS YOU COULD.
WE HAVE IT, THE MEETING AT, UH, SAY THE 24TH OF MARCH, THE 24TH OF MARCH WOULD BE, IS THE AD HOC, THE LEFT IN AT FIVE O'CLOCK AT FIVE O'CLOCK.
UM, UNLESS YOU WANT TO DO IT, UM, THE LAST WEEK OF MARCH, MARCH 31ST, MARCH 31ST, MARCH 31ST WORKED FOR, UH, COMMITTEE MEMBERS.
MARCH 31ST, I HAVE A CLOCK FIVE.
IS THERE ANY OTHER BUSINESS HEARING? NONE.
I HAVE A MOTION TO ADJOURN SECOND.