Um we are now realizing our projected of having additional funding for supplemental concentration funds. Now this is a breakdown of our revenue. So the first line where it says LCFF services um that's our local control funding formula. So you'll see now we have a projected increase of 132,900 um $910 just by having that 3% increase of attendance. That is what that equated to. So we're happy about that. We have our federal funds that are showing a reduction of $91,000. That does not mean we lost funding. Our federal dollars um you only could account for the revenue that you're actually spending. The revenue that you don't spend becomes deferred revenue for the next year. Um we have an increase in our state revenue and also an increase in our local revenue of $1.6 million. This is a bar graph of um exactly was on a previous slide.
Do we need to vote on that or is this enough for me to just tell the town and hope that that concerns people? >> Does a vote happen? Yeah, >> that that wasn't sort of the obvious solution. Um there is a gap between the town uh budget for the schools and what we're thinking that we need to put forward. And I think a big part of this is for us to all understand the narrative. We're going to be out there in the community. People are going to want to know, you know, why should I vote for this? Why should I pay for this? what happens if I don't? And we're all very concerned about transparency. We don't want to say, "Oh my gosh, we're going to lose 45 positions." And then after they're we get to that point, you all say, "Okay, you know, we'll give you some for stabilization and we'll put it off another year." So I think the the best approach is just to be honest about doing what can we do um if but with emphasizing that it's really needs to pass because we're all the entire town is in really bad shape if it doesn't.
You one of the first things you as a school committee said to me, we want to know why people are leaving Tahhata, right? We want to know, we want to find out why people are, you're hearing it right here, right? When we're competing against the St. John's of our community that one of the highest performing APs, right? Um our students are scoring the AP, we're competing against them. So, if we're not offering these programs to our kids here, they are going to look elsewhere. And that that's sort of on us. That's why we need to make sure. And by the way, not all AP courses, you know, a student's going to get a four and five and be able to get those courses taken care of at college and universities, but there's a whole book called The Power of Two, right? Even if you score two on an AP course, the preparation that gets you ready to go into a college or university, our job force and have that skill set and the preparation, the planning is incredible.
So, our LCFF you see by mouse, it is our largest funding source, followed by our state of 20 um $23.8 million. Now, we're going to jump into our expenditures. So, we have our certificated expenditures increasing at $67,000 and our um classified staff um salaries going down 166. At this point, this is when we're realigning our budgets based on actuals. So, at first, interim and adopt the budget. Um, we have plan expenditures such as extra hours. If those hours don't materialize, that's when we'll have a reduction. Um, our greatest reduction that we're proud of is that we committed to lowering our contractor services by a million dollars. And right now, we're showing that we're getting close to that mark. We have a reduction in contractor salaries of $963,000. So, a little slight less than a million dollars, but our goal is to close out with that.
There's [clears throat] no way around that. That is the major point that I think all of us are trying to make. But in order to have the conversation with voters, they're only going to vote for this if they understand where this where this how serious it is and where it lands. And none of us want to be saying anything that's not going to be true >> or or we don't want to change our minds later about anything if we can avoid that. Of course, things happen and our budget is changing daily and sometimes we do have to come in with different numbers because of the fluctuations that we experience that are out of our control. But to the extent that we can um provide information and and close gaps and I don't know if it's a vote or the select board, you know, agreeing that they would meet the schools with that with that gap.
>> But Al, people keep leaving the district to go somewhere else. Doesn't that help us out because we have to spend less in our budget to educate fewer kids? But how do how do you stop the bleed, right? How do we not have >> How does that affect the budget? >> Because we're we're not being able to offer kids what we should be offering. >> If we have fewer kids to educate, wouldn't our budget go down? >> We still need to have the staffing to be able to provide for the kids that are wanting these courses and things that are out there. We still have to be able to provide our kids a high quality education, whether there's five kids sitting in an AP class or 14 kids. there. A general Yeah, just a couple of quick general comments and I appreciate the time that the school committee is is giving us here.
Um we are proud that um through the work of HR they've been working diligently to fill a lot of our vacant um positions. So we've been able to minimize our contractor services because of that. And then here this is just showing another bar graph of our expenditures. Um so the goal is always to have 85% of your budget going to our people. Um right now we're a little bit shy of 75% coming in a little of 74%. Um and our goal is to continue to um lower down that contractor services which is currently at over 20% so that way we can reduce contractor services and u increase our actual employees and that will get us closer to that 70 85% marker. Now, we're going to jump to our MYP. So, this is a beautiful MIP and we call it our beautiful MYP because you'll see on that third year out, we no longer have that shortfall and that is because this secondary report is actually um is incorporating um the past resolution that was approved by the board of education at the last meeting um for the reduction in force.
so that we can get our narrative in order. >> Right. I was going to say in terms of whether or not we as a tri board body or voting or kind of giving it's a select board decision, >> right, on whether or not stabilization, but that's for the select board to decide and and you know, kind of the I guess looking at is would it be stabilization funds? Are there ways to ek out some more money from the general fund by making some changes? I don't know the answers to those questions, but I would assume that as a body that's what you guys will be looking at. Um, but obviously there's there's a really tight turnaround on this as well too. And I think we're under the gun in terms of the time frame of where we have to pass our budget. And so we [clears throat] we need that clarity and that commitment that that that gap is going to be made up.
Um, >> Jen's keeping time on the three minutes. >> How's that going? >> Listen, I bet you have three minutes. >> Um, one of the interesting things that is kind of unique with the sciences is that we are licensed by content area. So, um, you know, I have a biochemistry degree, Miss Smith has a physics degree, Miss Canning has a biology degree. So unlike mathematics or English or social studies, there isn't this kind of tr there really isn't a lot of transferability between uh the content areas. Um so there there is that piece. So science is kind of unique in that respect where it's a little bit more difficult to just kind of slide people around, but we're doing it because we that's you know we want our students to be successful. Um uh the other piece that goes along with this is um I've been you know I've I started working with this district in 2002 and um one of the things I think is incredible is when students come back and they talk about their experiences going into nursing, going into medicine, going into engineering and talking about how the programming here, regardless of what their grades were or how difficult it was prepared them for that work beyond high school.
Um so now we're showing that we're meeting our 3% reserve for the current year and the two subsequent years. This is our components of our any fund balance. Um our largest is our committed funds. Um what we do is that anything that's in our LCAP that is not being um that is not being spent because we have other onetime funds that we can actually um allocate those expenditures expenditures to we commit those funds to our inund balance for unrestricted. And then our largest over $34 million is our restricted in fund balance. I'm sorry that it's so small, but that is a reflection of how many um restricted grants that we have that we have time to spend over. Um and so um for all these grants here, there are restricted um expenditures that we can spend them on. So as we those expenditures materialize, this will of course decrease unless we continue to receive more grants as we did this year.
How it's going to be made up is something to be decided by the select board. Um, so just um just to put my my thoughts out there, I feel like, you know, we really need to meet the needs of of the schools if this doesn't pass. I think the narrative partly is um you know, when people say, "Well, why would I vote for it if if if you're going to take funds from somewhere else?" And I really think the the thought that if this doesn't pass, we're going to be back asking for this times two next year. >> Yeah. >> And that is going to be more painful for people to to to absorb or there's no other place to take the money from. So when we talk about the decimation of the schools the following year, we're talking we're talking we're we're talking losses that we won't be able to recover from like period.
and they look back fondly and actually Mrs. Jory and I went to a um uh the class of 2020 reunion and quite a few of the students approach us to thank us for the preparation that we had given them um for the successes that they have now knowing that they were prep prepared far beyond those of their peers entering college. Um, and just my own uh perspective here is simply that um I think it's I don't want to use the word I don't like the word owed but the students that are currently here should have opportunity that same opportunity that the students that have already graduated from Tatonato have had. Um so that's just something to consider too when you're considering your budget. >> Yeah, they should have the opportunity to have a chemistry teacher who has indepth knowledge of chemistry. I mean, I have a chemistry license, but my subject area, like my, you know, expertise is not in chemistry.
And with that, um, I would like to ask the board of education to receive and accept our second interim with a positive certification. Thank you. >> Do we have any questions? Board member Greer, >> just one question. Um, we can go to slide eight. >> Yes, sir. >> Just just curious. So, for the the asking why do we have more money? Um, but but just looking at the the variance for for other local revenue. Um for the unrestricted unrestricted it's a total of $1.6 million additional local revenue. Can you just speak to what that is? >> Yes. So um this uh local revenue includes all of our site donation money also all of their fundraising money. This also is where our interest for um and so how we have the restricted funds that are inside the bank. We earn interest as the money is sitting there.
>> So you know that that is you know we're we're making all the right decisions to try to minimize the impact for taxpayers this year. Um, but I really feel like we got to figure out this $444,000 and figure out how we can how we can support, you know, [clears throat] meet meet that gap. I mean, we're not talking um the entire, you know, 3.5 million. We're talking about this additional, you know, so it's basically, you know, 2 million out of our stabilization fund. And I'm comfortable with that. I feel like we should do that. Personally, >> I think you hit the nail on the head with that, Brandy. And I, you know, I think that um, you know, the way you actually for in so far as me messaging is concerned, I think you've also sort of struck upon something here like, you know, we take care of it now and we're we're minimizing the the possible impact or we kick it down the road and then the problem becomes exceptionally worse.
So, my students, my chemistry students are not getting the same, you know, as Chrises. >> And it's the same with biology. I have a biology license, but I'm not biology. >> Yeah. And that's about and that's an MCCAST course. So, you know, it's kind of a snowball, you know, effect. So, >> and no disrespect to Mr. majority out in the audience, but finding ELA teachers and finding science teachers and math teachers and engineering teachers, they're they're they're tough to find in the lens you're in that as well to double that finding. So again, passing this and it's right now you you're on school spring and so is everybody else. The people that are out there looking for jobs, it's right around this April time. So if we're going to be competitive and get that those high quality teachers that we want, we got to be posting now.
So we're projecting an increase in interest income. So all these are projections right now. As the as we close the books, we'll see if this materialize. But based on the rate of how much interest we're earning and how much donations our site is bringing in, this is where we're coming in with this increase. >> Yeah, that's my only question. And and just >> and any further questions? I I just say kudos like great great this is this is just great great work and what we're continuing to see not only how money is being spent but but the grants that are being found and ways to spend money here instead of there I mean this this really is a reflection of of hard work that's that's clearly on display and so just kudos to you and your team >> thank you for clerk Ronaldos >> yeah one question on the expenditures you mentioned um close to a million dollars in reduction for contract services and then you also mentioned um hiring of employees, right?
>> So, um, yeah, I think that's a good way to articulate it. Don't disagree. >> Uh, unless there's any I'm going to open it up for a question because I know um there was a viewer who had their hand raised. Um, [clears throat] and I'm sorry I can't see. >> Joe, can I just see one one more thing right now? I just want to add, you know, to John's point, too, about, you know, everybody has to do when you vote, you have to do what you know you can do. and and there's no doubt I think in in anyone who's listening's mind that we need an operational override. Um and so, you know, I just want to say that while we talk about what we would do if if we that doesn't happen, this is what we need to do and this is what we need to do now.
But Al, this is a this is a budget conversation, right? This is going to cost money. >> If kids want tech or or science, can't we just send them to a vocational school? >> No. >> Why not? >> For a vocational education, yes. >> Don't they have tech at those schools or can we not go to those schools? >> Not not to the expertise that they they just said that they have and the lensure that they have to be able to teach at the level that these kids are looking for. So what you want to build something like that here? I think they're we're talking right Lisa Rich and and and Dr. Conway um already engaging in conversations for pathways so we can have these opportunities for kids here as well too. That is certainly something we don't want our kids to go to vocational schools.
Is that 963? I'm assuming it's not a net, it's it's just reduction in contractor services. So, what is the the offset on hiring employees to do that work? >> So, it's right now um we have a lot of our um specialed services that we have to contract out because we have not been able to fill the um position and we're required to provide those services. So, we have the contract out. We have a contracting agency, but as soon as we're able to fill that position, we're able to council cancel that contract whether total or in park. And then we then we'll see our employee expenditures increase, contract services decrease. >> Okay. Yeah. But um right now you don't have the that net what it is right now. >> No sir, I do not. But I can get that for you. >> No problem. >> Any further questions?
and and so um again I'm I don't want to discount anybody who isn't in a position um you know to to vote however they need to vote but it it just needs to be known that if you can find a way it needs to >> you you provide them all the information and they're the ones that make the decision when they go and vote you know they're the ones that have to make that decision right wrong or indifferent so I I I agree you 100%. So, I will uh ask um and I can hardly see the name up there. I see a hand, but I don't see Is it Julie? If you could uh unmute, Julie. Good evening, Julie. >> Hello. Julie Nardone, 86 Elliot Street. Um Michael, can you please go back to the slide with the 575 on it for the payment? You mean 5:45, Julie?