Jen does that for her grants. That's kind of the range where it runs for um uh retire state retirement, social security, Medicaid, workers comp, long-term disability, uh what am I missing? Social Security. Did I say that? I think I said that. Um all of those together run about 22% of whatever the person's salary is. Okay. So that's our rule of thumb. So my plan A was to do an increase in in base for everybody and everybody would also get a step raise but I also do the calculations just for the step raise. So um so I calculate those things then I calculate any changes in insurance. Oh and I see when this when this slide translated from what I did it in that the little dollar sign didn't move. So sorry. Uh if we have we always have an increase in cost for insurance. Um the last three years it's been around 7%.
Uh right now it's looking like 20%. Oh my gosh. Yes. We'll talk more about that next week. But you can see that that is the main reason that I did a plan B because I was working on plan A to increase the base and increase salaries. And an increase of 20% in insurance is $480,000 compared to what I thought it might be at $200,000. So significant difference in terms of playing with these monies. Okay. Then I review all the positions, not just uh not just teacher positions, but all of ours. Anticipate what needs we have and look and see if we have any available funding and other funding streams. And you just heard Jen say that probably not in her funding streams. So we're looking at what money's in all the other buckets. Then I determine if any positions could or should be funded from other sources.
So for instance, classroom site fund, remember it's its own budget, right? Currently, we fund seven teaching positions from that budget and then the rest of it is uh either base pay at $2,000 per teacher or uh and performance pay at the end of the year. Okay. Uh uh I've already spoken with the uh classroom site fund committee. U we've reviewed the plan. We'll have a new plan for the board to approve for next year, but I've already said to them uh that I'm exercising my um uh authority to increase the number of positions being paid for out of that fund and from 7 to 10. So, we're moving, you remember my org charts that are colored colorcoded, the positions on there that are currently colorcoded for classroom site fund, there are seven of them. There will now be 10. So that's three positions I'm moving out of M to classroom site fund.
Okay. So that's what I mean about do I have funding someplace else that I can you know that I can move a position. Okay. So if you're using that money to fund three more teachers, what has to be subtracted to do performance pay part? When I came into this position six years ago, uh teachers were getting about $2,500 in the performance pay part. Uh last year it was 6,800. How much was last year? 6,800. Well, 5,800. They had $1,000 for some point things that they earn. That's now going up to 2,000. So they've got they have the 2,000 on base from that fund. Okay. So in in addition to our uh salary schedule, every classroom teacher, so it's important that you know that it's classroom teachers, every classroom teacher gets an additional $2,000 on top of base. Okay? And then at the end of the year, if they h then they can have as much as 2,000 from helping with like um uh after school programs that are not funded otherwise or um events, sponsoring events or uh coming to board meetings.
They get a point for coming to board meetings. So they're working for 10 points at $200 a point. And there are other ways that they can get those 200 200 or those uh 10 points. So that's a that's 2,000. Okay. And then whatever else is left in that fund gets divided up based on the formula that's part of that plan for performance. Okay. And so last year that was 5,800 bucks. Okay. So yes, that will go down. But of course I've reminded them that it's gone up significantly from the 2500. uh when I came to the when I came into this position, I think at that time there were probably 11 or 12 teaching positions that were paid for out of that fund. Okay. So then we dropped back to seven and now I'm I'm moving it back up to 10. Okay. Okay. So then I calculate what the budget needs for employees.
So uh on the right you see a piece of this document that I put in front of you. And what you're seeing there represents the columns over to the first column that's shaded. Okay. So this is the these are the columns that have salaries and benefits and you can see it at the top salaries and benefits. All right. So in the current budget salaries 10,789,000 benefits just under $4 million. So it's close to 15 million. Oh, here it is right here. 10 actually the 10 million is close to 11. So if you had 114 million. So 15 million of our $19 million budget. actually drop that back because remember part of that 19 million is that 1.1 for capital. So 18 so 15 million of the 18 million is salaries and benefits in the current budget. Okay. So that's where I start if if I decide to recommend to you that we need to keep the people in the keep the positions we have.
Okay. And recognizing that we're putting people up a step on the salary schedule, it would be really dire if I said to you, no new bait, no raise in base and no step raise. Okay? Step raise for teachers is $500. Step raise for classified employees is 30 cents an hour. All right? So, uh, it would be a drastic thing to say to you, we can't even do a step raise. I don't even want to think about it. But that doesn't mean that we won't have to at some point. Might have to think about that if we have to absorb some positions from title one. Okay. It might be an unfortunate reality or I might have to put another position or two over into classroom. Okay. So then the second category is purchase services. So based on the current year trends I estimate the cost for fixed services.
So, just printed this out this morning. This is the Mino budget. Okay, 29 pages, 27 pages. And I have here what was budgeted, what we've spent already, what's been encumbered, in other words, it's promised, but we haven't spent it yet. And what's left? Okay. So, I look at this and I will tell you I'm a little bit OCD about this. I don't know what other business managers do. I don't know how they do it, but I literally go through this line by line and project what I need for that line for next year. Okay, the first pages are what you just looked at. That's all. No, it's all the salaries. It's not the first pages. It's the first part of any section. I've now divided them with a a yellow line. It's the first section at the first part of any section that is headed by a yellow line.
And then the second part is insurance and the third part is benefits. And so I go through and literally line by line do that. And then I go, okay, what do I have left? Then I look at fixed costs. I estimate what did we pay this year for electricity? What did we pay this year for water and sewer? Well, actually this year we only paid for half a year of water and sewer because the city paid for all of calendar year 24 as part of our deal with for selling that. Okay. So, I'm going to have to I'm going to have to double those uh for water and sewer for next year in the budget because I'll have to pay for the whole year, right? Um and so we have to we have to make those uh you know I go through and I do all of those fixed costs.
Okay. Um, and of course we have things like the alarm systems and the internet dues and fees. All of those kinds of things fall in that. Then based on the current year expenditures and plans for instructional support, I estimate the costs for employee training and other technical services. So technical services include things like uh right now we have one live speech therapist and we have two virtual speech therapists. Now uh uh one of one of those positions is paid IDA all three. Sorry, don't even have to look at that one. Jen does, but I might have to look at those depending on what gets cut in those. If IDA doesn't get cut, we're good. Okay. uh physical therapy. We have our own occupational therapists, but we contract out prof uh physical therapy. We contract out eds psych for testing. All of those fall into this.
We have to keep them. You know, you have to keep the therapists, we have to keep the EDS psyches. Um and and we contract that out because we can't afford to hire we can't pay enough to hire our own ED site. The the real world out there pays way more than we do. So we we contract for those services on a per student basis. Okay. Then I also look at the uh current year expenditures for maintenance and those are on this. They're represented on your sample in the gray column. Okay. And then I have to look at supplies. And if you look at the gold column, you'll see that the biggest supply one is in line 2600. That's operation and maintenance. That pays for all of our custodial supplies. It pays for all of our uh maintenance supplies. Um, it also pays for some of those utilities that I told you for what some weird reason are coded over in that in there.
But the rest of our supplies are pretty slim. Pretty slim. And then I do exactly the same process with the unrestricted capital outlay uh but in this order. First is debt payment. We have one outstanding debt. It's from a project that started in I think 20134 which was replacing all of the light fixtures in the district lighting with with fluorescent to whatever was the next step up at the time. It's now all obsolete and we're still paying. Um uh so uh I think we have three more years to pay for lighting that's obsolete. Yeah. Uh and then uh all of the we lease all of our Xerox machines at all of our sites. Um that's a really good way of using our funds because otherwise when they if you buy them and then they're you know they have a life expectancy of five years and suddenly then you have to purchase new ones and whatever.
So, the lease is uh includes not just the machine, but all the toner and and x number of copies. We tend to go over that a little bit, but not too bad. But the thing is then when the when the machine is dated, it's replaced and we're not, you know, we just continue the lease process. So, we're paying a fixed amount every year. It's makes it really easy to budget because we know exactly what it's going to be every year for our copies. uh instructional software. We talked about that a few minutes ago. Uh non-instructional software, so uh short and long-term things, but um I don't know how we'd run our business office without visions. I don't know how we'd manage our student information system without uh synergy or some similar program. And uh so that's really important. We pay for instructional aids. So for example, we pay for amplify uh which is our reading program.
Uh uh there are uh there are software and and related items for that that we pay each year, construction services, technology, furniture and equipment, buses, other vehicles. I did not print out this page for you. I I would be happy to give it to you. Uh but it's not the kind of detail as this uh for the regular budget, right? But I go through exactly the same process. I look at what we spent this year in each of those categories and then make an estimate of what we think we're going to need in those categories for next year. So additional challenges uh I told you long way back at the beginning that I would come back to this um uh current year funding. So it used to be that the budget for the following fiscal year was determined by the ADN numbers on the 100th day of the current year.
Okay. So through the n through the 1990s when our district was growing 8 to 10% a year and frequently the growth happened after the 100th day of school but the budget for the following year was determined by that 100th day ABM. However, in the news in the new school year, at the 40th day of the new school year, all of that was recalculated. And so, our district ended up always with a bigger budget after the 40th day of the next year because we got the rest of those kids got counted. Okay? And then the same thing happened at the hundth day and so on. That's not the way it's funded anymore. It's funded literally every month. So, every month I print one of these and if there are significant changes, I go in and me mess around in this document, okay? Because literally I could present you a budget revision every single month based on our numbers.
We don't do that. I do want I do one in December. I do one in May which is the final revision. That's kind of scary because I will tell you that sometimes things change between May 15th when we file that revised one and June 30, which is the end of the fiscal year. Um I got a little I got a little ouchy about that last year because I thought what's going to happen because I had something came up that I really had to move money to pay for. So I called uh I called my contact at the AG's office um uh that I kind of got in good favor with about five years ago. And I said, "What happens if because I have to move this money, we have to pay for whatever this is." And he said said, "Really, really really the bottom line is don't exceed don't exceed this number right here.
We know that sometimes things move around. So, as long as you don't exceed this number, you're not going to get in a lot of trouble." So that made me feel better. But literally it is every single month. And keep in mind that the data used for these calculations are already a month old. Okay. And then you heard Jen talking about the data for uh some of the grants are based on data from October 1st. Our special ed count for her grant purposes are based on October 1st. So, for instance, our preschool special ed program has grown by 20% since October 1st. Okay. Now, that doesn't factor so much into the IDEA, but it does factor into what we're doing otherwise. Okay. So, that's really really of concern. Um, and then, uh, special ed funding gap, and this is one we keep talking with the state about because we have to provide services for special needs students.
That's federal law since 1964. Okay. So, yes, those students are counted in both our regular ADM and the group EDM weights and in the federal IDA dollars. However, many districts, including ours, spend more money on special education than the funding allows. I mean, not allows, than the funding that we have for it. Okay? And so Melinda your point earlier of if you raise this what h what had to go down right so um uh if we have to ra if we have to put more money into the sped bucket or partial bucket because it's really part of m but if we have to put more money in that piece if we have to put more money here in this section of this page that I gave you where does it come from up here. Okay. So, it's moving it around. And I'm not complaining. I'm just saying to you, it's one of the reasons that all of our alphabet groups in Arizona for years have been lobbying with the legislature to increase that weight, those weights for special needs students.
Okay? Increase those weights. Okay. So, uh I'll be back in a little bit, but it's Jennifer to tell you how she decides to spend So by grants again um so for our homeless grants um the the main purpose of it is to eliminate any barriers so any of our students who are homeless they can come to school. So, um, they have to or we have to provide them with transportation. So, if they were attending Sunrise, become homeless, and are living temporarily down at Desert Valley's area, we still have to provide them transportation back to Sunrise. Um, because we want them to at least have some some piece of their life stable in school is going to be what we want to keep stable. Um, so the first thing, um, we look at is a needs assessment. So, every spring, Sheree, our homeless, sends out a survey to all of our parents to see what do you need?
Like, what can we help you with? Um, anywhere from like school uniforms, sometimes it's just even undergarments, shoes, um, school supplies, um, we purchased tents for people that that were living on their cars and would be better off being at like Davis camp or something. So um a variety of of things we buy um out of this grant, but our first pri priorities are our homeless on salary and benefits. So a piece of it is paid out of title one and a piece of it is paid out of this grant. And remember this grant is competitive though. So we're guaranteed for three years to be able to pay for her a piece out of this grant. But next year when we will apply again for 2027, I mean there's always the chance that you may not get that grant. So then it has to be taken from somewhere in another budget.