001So, um, Chairman Fan, we we are we are live. You can begin the meeting at any point in time. >> Yes, sir. Uh, Kaylee, will you roll uh do roll call? >> Jim Fen >> here. >> Lorraine Rosner >> here. >> Anthony Smearaguino will be with us momentarily. Kate Coutach >> here. >> Joey Palagi >> here. >> Jason Nevs >> here. >> Patricia Munan >> here. >> Carol Panazo >> here. >> And Rich O' Conor is having technical difficulties. Also in attendance, Ken Sarinich and Jackie Tulings. >> He may come through on his work uh PC. He's trying. So if you see it show up as something strange with that I believe we need to do the pledge of allegiance. Correct. Is that right there? >> Pledge allegiance. >> Yes to the flag >> of
002the United States of America >> and to the republic for which it stands. One nation >> under God, >> indivisible, >> with liberty and justice for all. >> Wouldn't mind doing that, but boy, that's kind of weird on a Zoom fellow. Everyone, >> everybody gets a really nice shot of everybody's belly button. That's for sure. [laughter] >> Oh gosh, that's nice. >> I know it could be scary. >> I'm scary. [laughter] With that, uh, Dr. Serinage, I believe you'll take the command and, uh, take us through our first item, sir. >> Yes, sir. Thank you. And, and, uh, Rich just joined in, so he's with us now. So, >> well, good. Welcome, Mr. Okconor. How are you? >> What's up, Jim? >> Not much, sir. You're on with us. We just did the pledge, did
003roll call. You're in. >> And Dr. Sinage is going to take us through uh the budget. So, um, good evening everyone. Uh, I know some of our board members have been with us through this process, uh, before and we have some brand new board members with us. Um, c customarily on the first night, um, I go through the whole budget process. We're all on the same page. So, this is a good reminder and reflection of those of you who've gone through this before and obviously an introduction to those of you who are new. So before we begin talking about um any kind of proposals for a budget, I just want to walk us through the process. So um obviously our budget process begins this evening and our deadline um for the work that we need
004to do is all dictated by city charter. Um the biggest deadline that we have to um meet is uh we are required as a board of education and looked upon as in the municipal budget as a department for the municipal budget all municipal departments have to hand in their completed um budget proposals to the city um by February 15th. So that is our drop dead deadline date to get things done. Obviously, um we have some meetings that are scheduled, some workshops that we'll be working to do this, uh because we need to end and have a proposed budget well before February 15th. It is a process and we we put together a bound book um that we have and we have to give it to the alderman um ent. So, we want to make sure
005that we get our budget done well before the deadline of the 15th so that we can submit on time. Uh once the budget is submitted on the 15th, the next step is the mayoral review. The mayor will look at all the different proposals that come in from all the different departments and then he will make um his mayoral proposed budget to the board of alderman. That usually happens around the third week of March. You know the date to specific date to be determined. We will publish all the dates when we get them from city hall. After that time, the board of education is always invited to a joint meeting between the board of alderman uh and um the taxation and appropriation um board. That happens sometime in April. Um all city departments are normally invited.
006Uh and we're basically we discuss our budget requests. We discuss our budget requests um relative to the mayor's proposal and and how they align or how we we need to talk about um some additional requests itself. Then the board of alderman have their budget workshops. Um those are also held in in a public forum like ours uh in which the public can view and and be participants of. Um uh and then sometime in April, usually around the the fourth week of April or so, uh there will be a published date for um public comment on the city's budget. And that's when uh anyone supporting the board of ed budget um or any aspect of the city's budget whatsoever can feel free to to chime in their supports or concerns about the budget itself. And then
007sometime um by the end of May um the board of alderman will set the mill rate for the city um and that will determine um the allocation that the board of education has received. Uh never once in the history that I'm aware of has the request from the board of education and the board of alderman's allocation been identical. So there's always some kind of adjustment that needs to be made. So, as soon as that mill rate is set in May, um we will reconvene as a a board of education to look at the allocation that was given to us to the city and make any kind of adjustments that we need to make necessary um in in the first weeks of June so that we pass a budget and have an operational budget effective for
008the next fiscal school year, which of course starts on July 1st. So, that's the process in itself. Um, in the past we've scheduled six budget workshops to get this process done. Um, our board chair this year has asked us if we can do it in four. Um, Jackie and I see no no issues as to why this can't be accomplished in four. Even in the past when we have scheduled six, we've never gone more than five. Um, so really what we're going to do is in in the first night where we talk about process was always the first night. Um we're going to talk about process and then start diving into some of the the budget itself this evening. So Jackie and I have already looked at how we can con condense those five days
009into four and I think we can do it um with relative ease getting our four meetings in having enough time for administration to complete the budget packet and get that into the city by the February 15th deadline. Um I want to remind the board of our goals in the budget process. I mean first and and and foremost uh we need to find a budget in the best interest of our students. Uh administration is going to make proposals on what are our needs are for the school system. Obviously I would ask you as members of the board of education to always look as and in the best interest of our students itself. We do want to work with the city. Uh we want to work within the city's budget. So we want to keep that in
010mind when we're when we're thinking about the goals and the bo budget process. And of course we want to work in the best interest of the community and the taxpayers. So those three aspects we want to consider as we walk through this process itself. Um I want to just talk about the the schedule as as I mentioned earlier. Um we're going to do some four four meetings. So I want to talk to you about the four meetings that we have. Um I do want to remind the board as well as our viewing public that these budget workshops are considered special meetings of the board of education. Um, by Robert's rules, uh, a special meeting of the board of education does not have public comment. So, there's no public comment. So, a meeting like this is
011easily facilitated Zoom being the time of year and the weather related that we have in January. Um, if a member of the public has a question or concern as they view this in the public uh, in the process, I do encourage them to email the board chair. Um, they of course can be emailed my office as well and we will be happy to get those comments uh to members of the board. Excuse me one second while I have to let in Anthony. Just want to make sure he gets in and then I'll continue. >> Okay. Good. Um, if any member of the public would like to make a comment on the final board's proposed budget, of course, we have our regularly scheduled meeting on January 28th. And at that point in time, uh, as always
012in our meeting, we do have a public comment portion that can happen. So, when we talk about our four scheduled budget workshops, uh, the first one that we're going to go over tonight is we're going to talk about the rollover budget. um basically what are our contract contractual obligations that we need to meet for next year. Um we are going to talk about employee benefits and health care which is a major driver of our budget and we also like to talk about utilities. So that's what we're going to talk about tonight. I did send um the members of the board the handouts that I'll be reviewing. I will be showing the handouts um on the screen so our viewing audience can go and walk us through that. But I thought for easy access for the
013board members, you should have that your own copy or you can follow along in the screen itself. Um when we meet again, which is on Thursday, we're going to cover the operational aspects of the budget, maintenance, technology, security, and such. Um next week when we meet for our third budget workshop, we'll do the instructional aspects, which will be, you know, instructional supplies, staffing, and special education. Um leading us up to the fourth budget workshop. By that time, um, we will propose a recommended budget for you guys to vote upon, um, based on the feedback that we'll receive in in the process. I do want to remind the board of education that what gets sent to the city on February 15th is the board of education's budget. It is not the superintendent's recommended budget. I will
014make a recommendation on the fourth workshop um, based on our discussions and the feedback and help and assistance from administration. Um but what is voted upon is the budget that you pass as the board. Um superintendent administration will make recommendations. We'll answer any questions that you have, provide you with any information that you ask for, help you develop the process, but the board will develop the budget. You will all will vote on the budget and you will submit the recommended budget to the city. Um, with all that said, as we talk about our first budget proposals, I just want to talk about um our current situation um that I'm sure our our members of the board are are fully aware of, but it's important to have this dialogue right now as we begin talking about
015the budget. And just so our listening audience knows as well, um what you're going to see when we initially talk about the budget is is basically a compound effect that we have of um underfunding of of the board of education, which has made a significant impact uh on our ability to fund the the board of education moving forward. Um, in the course of time that I've been the superintendent, which is my fifth year as superintendent, um, we we as a board of education have not received the allocated amount that we presented this city in those years. Um, the only time that we have been able to sustain a budget without driving a deficit was in my early years as superintendent um, when we received a lot of federal grant money uh, coming out of COVID.
016Um and we did sustain a lot of um budgetary items with that and work with the city and last year when the city decided to give to establish two reserved accounts. They established a reserved account on special education and a reserved account on healthcare. And with that, those of you who are members of the board of education last year know it was the first year in in my tenure that uh we netted a zero and we actually did not use all the money in the reserved. It was a great example of collaboration with the city that I'm hoping we can reach this year. Um, but even going into last year's budget, um, we did have our contractual obligations from last year that we presented the city and the city did not fully fund the contractual
017obligations. So, we're opened up this year with a budget deficit. So, we already opened up the year with a budget deficit. um to exercise fiscal responsibility. It is our job as administration to be fully transparent about what the deficits are and to make those accounts whole. You know, um we're going to be presenting some what what are going to be some sticker shocking high numbers. Um but it is the reality of the situation. when you go several years um without getting allocations within the budget, those those years compound year after year after year. Um what are what we need to do to properly um balance a budget is Jackie and I need to present to you the numbers that show what will make this budget whole as a zero. um how that transform transforms over
018the four budget workshops and dialogue that we will have with the city um can change over time. Um we have had great communication with the city. We hope that we continue that dialogue um and direction that they may give us on how they would like to um how they would like us to allocate money in in our budget so they can work with us whether that's through reserve accounts or others. But in the meantime, um, we must present a budget that's net zero. You can't present a balanced budget with a deficit. That would not be fiscally responsible. So, what we'll be doing tonight and what we'll be doing all nights, um, is what this board has seen before, which is what we call the financial walk. Um we give uh sheet by sheet each night
019of all of the families within our budget um and how we are allocating money towards those families um each night that we have a discussion. Um it's a very methodical, logical and easy way to follow. Um every every time we have a budget workshop, we'll update that walk based on the discussions that we had the evening prior and eventually we'll fill in that whole financial walk uh to present a bottom line figure to the city. Um before I show tonight's first financial walk, I just want to talk about what you're going to be seeing um specifically with rollover costs. Um all of our rollover costs are really associated with contractual obligations that we have for our employees. Um as you know that um the majority of our employees make our certified staff which is our
020teaching force. That is the largest bargaining unit that we have um within our budget. Um and with that being said almost 80% of our entire budget deals with salaries and benefits. Um we don't have a lot of movement outside of that. So, when we talk about some of our highest numbers, it's going to be tonight. Tonight's going to be the highest numbers that you're going to see um because we are dealing with salaries um and our contractual obligations with that. Um I do want to emphasize um to our viewing audience um that this board knows and we will we will reiterate with the city when that time comes um we have collective bargained in good faith with all of our collective bargaining units. Um all of our contracts have been done in a fair and
021equitable way. We have had direction from the city in those processes and it is our obligation to meet the contractual um negotiated contracts that we've done with these groups. Um last year we were not fully funded in our contractual obligations. So we had to make significant cuts um to our budget which which rolls over into some um deficits that we have to cover for this year. Um hopefully again we can have the city understand um our obligations to the contracts that we've done with with the collective bargaining units of the district. Um the other thing I want to talk about the big number that you're going to see is of course the cost of health care. I know this board is wellversed in the cost of healthcare. It's been a topic of discussion since this
022school year started. Um healthc care last year uh was flat uh was not funded. We were directly um asked by the city to flatline health care. Um we were told to not put any increases in that. Uh we did not put any increases. We've already had discussions this past year of the results of flatlining that increase and what that's going to do for this year's budget. We're going to present tonight the recommendations that we've been given by our insurance advisors um IMA and what they have told us with the pro um proposed increases with health insurance. So you'll see those numbers that are reflected in the information that we received. Um I do also have a breakdown. I know there was a second handout that I gave to the board that I'll walk through with
023the board tonight and our viewing audience about that breakdown in healthcare and how it has a significant effect on flatlining that number over the course of multiple years. Um uh but as as we move forward um with the healthcare and what had happened in the years past is the city had asked us to flatline that number and um with any rollovers we had the prior year we had um the reserved account which worked out to our benefit. But even before we had the reserved account the concept was established because the years before we went over in that number and the city had to pick up any overages that went in in um healthcare. I will talk about some of the options um that we can do with health care and until uh this board um
024with with my help and and assistance um has a conversation with the city in terms of what direction that they would like to do with some of these high-cost numbers. Um as I said earlier, it is our job in administration um to present a a balanced budget. So, um, with that said, I'm going to take us through the the actual financial walk unless there's any specific questions about the process that I can answer before I go into the actual numbers. So, I'll I'll I'll go through the chair to see if there's any questions. Otherwise, I'll go right into the walk. >> Anyone? >> Go ahead, Dr. Z. >> Okay. So, give me one second to just share my screen. All right. And um just just because I can't see what you all see. You all
025see the financial walk that that um I handed out to everyone. Okay. So, this is the financial walk. Just so we can talk about it as a whole. Um this description, these are the the families that are listed in our budget. So, we follow the financial walk by following the family. So, it logically lines up with our normal um expenditure report that we give on a monthly basis. Tonight, we're only going to talk about um the areas that are highlighted. That's why they are highlighted. As I said earlier, we're going to talk about certified staff, non-certified staff, employee benefits, and utilities. Uh I'm going to talk about the increases that go with them. I am going to go to the second sheet with a breakdown on the employee benefits. Um, I will offer to um
026our finance director to feel free to chime in at any time if I forget um to mention something that we discussed in working out this particular sheet. But once I go through the financial walk, um what we'll do is we'll open it up for any questions or discussions on on where we'd like to go. Um first and foremost is certified staff. Our current approved budget is approximately uh $42 million that goes to our certified staff. um for us to meet our contractual obligations. Um I I understand I just a message that came through. I I will get to the other part of the budget when we get through all this. Um to get to our to our contractual obligations um with our certified staff, which is our our administrators and teaching staff again, which is
027our largest numbers in our in in our um entire workforce. Um it's going to be approximately I'm rounding up uh $1.5 million in contractual obligations. Um that obviously is the net total increase as you'll see in column three here. So the proposed budget um for next year when it comes to certified staff would be a little over uh 43 million which is a 3.55% increase in our budget. Now again, um for us to maintain the current staff that we have, um we must get at least the $1.5 million. If we get anything less than that, we will be talking about a reduction in force in staff because we won't be able to afford um to sustain the staff that we have. The other area which is the smaller group um uh a smaller group within
028um our employment field which which amounts to secretaries, custodians um um pair professionals and such are non-certified staff. Um our current approved budget for them is almost $11 million. Um the contractual increases and where we need to go to fulfill that obligation is uh um a little over $910,000. That would be our requested increase as you can see here. Um, which gives our total proposal for that as 11,7387 uh 11 million 738733. Um, that's an 8.41% increase. Now, that number is higher than normal for certified staff. And the reason behind that is is because we did not get the full amount um to sustain our staff from last year. When we did not get our contractual obligations last year, we had to basically lack of a better term steal from Peter to pay Paul to
029maintain our staff. Um we did make cuts as this board is aware. We had a reduction in force last year um across bargaining units um and that was done through retirements and nutrition. Um we did cut some staff that's those staff were brought back through a rift process um when we had other teachers who moved on to other districts or other opportunities. Um but we did have a reduction in staff last year. But not only did the reduction in staff not help us make the budget, but we did have to move money from other areas to cover staff for this year. So to make that whole, we have to increase um the amount of money um going towards that area to maintain the current non-certified staff that we have. Um the next line item, as
030I said earlier, does have somewhat of a sticker shock to the budget. Um but I would like to discuss that and I do have another breakdown for that number. Um and this obviously driver is is employee benefits. There are multiple areas that um drive employee benefits. The biggest one of that is health insurance. Um our current budget in the family for health insurance is um a little a little over $12 million. um based on the projections that we received from IMA, which is our insurance brokers, um that work with the city, because it's a city self- insurance and we work with the same brokers that the city did. Um they have told us that we should we should plan for an 8% increase in health insurance. Um, so when we look at the 8% health
031increase as well as other areas that we ran deficits in employee benefits this year, which I will show the breakdown in a moment, um, it does do an increase to make us whole because remember, um, we have not had an increase in this line item over the past 5 years. Um, it would be $4,733,184. Um, that would be the total increase to to make employee benefits whole. Um, it brings us up to 17 a little over $17 million. It is an increase of a little over 38%. Which is a very large increase, but this again has to go with um us presenting a budget that balances out a zero balance. um if we did not put these numbers, we would be presenting a budget that runs a deficit and a board of education cannot pass
032a budget with the deficit. So um this is going to go into discussions as to how the city would like to address this issue because this is an ongoing um issue that we have with the city when it comes to health insurance. And as I said in a moment, I'll talk about some of the um ideas that we have with that. Um the last line item that we're going to talk about tonight is utilities. Um current budget, we have about a little over $2.5 million in in our current approved budget for utilities. Um because based on some current contracts with utilities, we are netting um uh somewhat a gain in utilities for this fiscal year. So we're not making any recommendations to increase this line item. This item would stay a net zero for next
033year's proposed budget, keeping it at the same number of the 2587315. So that covers our utilities cost. We do believe based on um all all the contracts that we have with our utilities providers and some of the gains that we're getting with you with those providers this year um that it would cover any natural increases for next year that we will not have to increase that line item. So, as I mentioned earlier, um these are the four families that we're talking tonight. Certified staff, non-certified staff, employee benefits, and utilities. With these four families, and as I mentioned earlier, we have not talked about any additions to staff, no incre no adding positions, no increases to any supply line items. Um I do want to scroll down to the bottom. Um it would put our budget
034which is uh almost 81 million for a proposed budget of next year of close to 88 million which at that current rate is currently an 8.81% increase to our budget. Um I do want to share with the board I know many of the board members um who have been with us realize that that's probably the highest number that they've seen in quite some time. I did speak earlier that this number is being proposed to make sure that we net a zero. Um this number is is um there as realistic uh based on the the um situation that we have with health insurance and our contractual obligations. Um, I I did a look back uh I I have a a look back of all our budget and allocations with the city going as far back as
0352004. So almost over 20 years. The largest increase that we've ever received from the city um was back in 2005 or no 2005 2006 which was 20 years ago um which we received 4.5% increase. That's the largest ever increase that we received in the past 20 plus years. And that was the year that Shelton public schools went from half day kindergarten to full day kindergarten. So we increased our instructional staff by offering a full day kindergarten program. Um uh obviously 8.81 is is a large number to bring to the city and would be the largest that the city uh would be allocating the board. Um and this is before we've put any requests for new staff, additional staff or any supply line item increases. So this in reality since utilities is netting a zero is
036our rollover budget. Our rollover budget with the current numbers is 8.81. Um last year we had a high number as well when we presented employee benefits. Again as a reminder last year the city advised us to um net out a zero that they would cover costs. Um as you know where we are now we are exceeding that cost and a discussion needs to have with the city in terms of how that would be uh covered since they're they did not establish a reserved account like they did last year. Um but this is what we're looking at rollovers. I do want to um switch over to the next sheet and kind of break down the financial walk a little bit more um when it comes to that breakdown and where we get that number with insurance.
037Um before I begin this top part, I I want to share this bottom part because we did an analysis of the years that I've been here as superintendent. So in 2022 2023 um the approved budget for employee benefits was was this 7 million7 um and the actual expenditures was over 10 million. So in that first year we exceeded the budget and the city had to cover the cost of uh almost $2.7 million. We exceeded the budget in healthcare costs. That was in 23 uh 2223. In 2324, the city actually gave us an increase of 5.8%. We we brought our um employee benefits to a little over $8 million and again we exceeded that um by a million half dollars in which the city had to pick up that cost in 2324. every every year since
038then um in 242 25 and 25 and 26 we've been told and asked to flatline it last year when we did flatline it um we had an expenditure that went over $10 million but we had the reserved account because the city established a reserved account and the deficit was less than uh 25 uh $250,000 as you can see this number right here um we were able to net that to a zero by using other u moving other accounts over and as I said uh when it came to special ed we did not use all the special ed money so um we netted a zero and we actually did not use all the money that was reserved but as we've been talking in some previous board and finance meetings even this year alone we still flatlined
039that number there is no reserved and right now as it stands as the most recent projection um we're projecting again over $10 million looking close to a $2 million deficit that a discussion needs to be held with the city on how we're going to cover that deficit. So, when we're proposing a budget for next year, again, just I I hate to be repetitive, but I'm just emphasizing the fact that we can't propose and pass a budget with a deficit. We have to accommodate for this proposed um overage that we have this year. And the breakdown that you get here and all those employee benefits um come here from the top. Um the largest increase that you're going to see um has to do with the custodial um health care. Um a few years ago, I
040was not part of that negotiation when that took place, but when the custodians negotiated their their current contract, which will be up for negotiations at the end of this school year, um they they went on the state plan, healthc care plan. Uh they are not on um our city plan. Uh and the state plan this year increased by 15%. So um just covering this custodial health insurance alone is a 15% increase to our to our um health insurance. Uh and then the increases that we have to cover that I IMA told us that we should compensate for an 8% increase for our own insurance. Um everything else is staying the same number ofwise. Um you'll note on the um HSA and some of the other accounts, you'll see that there were deficits that were running
041this year. So we're trying to compensate for those deficits for next year so we don't run in the hole. That gives us our projected number and the and the balance and where we get that final increase um that that accommodates that that over $4 million increase when it comes to employee benefits. Um, with that all said, I'm going to stop sharing my screen so I can see everybody and I will gladly open up for any discussions, questions, comments. I'll I'll turn it back over to the board chair um so he can facilitate uh any open discussion or dialogue that you may have for Jackie and I when it comes to the topics that we discussed this evening. >> Anyone have a question? Take yourself off mute. I I have one uh Mr. Fan. Go >>
042ahead, sir. >> Yeah. For for the breakdown, uh Dr. Sarinich at the bottom for for this uh this year 20 uh 2526, it it has this um at an actual of uh uh 10 uh 10,146. Is that to date or is that figured until uh the the end of uh June? I'm gonna I'm going to defer to Jackie, but it's my understanding that's the projection till June. Correct, Jackie? That's that's what we >> It is, but those are based on numbers through October. So that's the that's the projection that I was provided by IMA based on numbers through October. They're working on getting us numbers through December. And uh you know our goal is to present those on the uh at the January 28th meeting. So we'll have >> so this I'm sorry Jackie and
043just so all the members of the board are aware um and it is relevant to this discussion. I mean I know we'll have our budget established by then. But at our finance meeting in January and the board meeting um members from IMA will be attending uh to be able to answer direct questions from the board themselves. >> Okay. asked them to attend that meeting. >> Thank you. >> I have a question. >> Go right ahead. >> Thank you. Um, good evening everyone. I didn't have an opportunity to say that previously. So, good evening and happy new year. >> Happy new year. >> Um, I have a question. Um, currently in the Social Security Medicare line, um, currently we're running a deficit of $101,551. Um, so when I look at the other deficits, they seem to
044be related to maybe a couple of new employees. Um, so so they're they're kind of within um possibility of a new employee or uh reasonable changes in the employment line. But the Social Security Medicare line, why do we have a $101,000 deficit? The only thing I can think of is that Congress passed a windfall provision which means that um there was windfall elimination provision. So is that the reason or or what what is the reason for that deficit? >> Jackie, I'll let you speak to that. >> Oh, sure. So the reason for the deficit is in that category that family um there has never been an increase in that line since I've been here. Um, last year the increase was a million dollars and that million dollars went toward non-certified staff. So, it's just basically
045a budget issue. So, we have a deficit because we didn't project a different am we didn't project the correct amount for the amount of employees that we had for this current school year. >> No, this we we projected the right amount. We did not get funded >> approved >> by the city for the full amount to cover the cost of all of our employees. The city did not give us our they we did not get the money that even covered our contractual obligations last year in last year's city fund. >> No, I understand that. But then why aren't your other lines out of out of um it just seems that that's a higher amount in terms of when I look at the other deficits, they're not relative. So I So if you're saying that it's
046a budget issue from last year, um why aren't the other lines out of Well, I mean, it's good that they're not, but >> Well, you're on mute. We can't hear you. You're on mute. >> So I'm just wondering why that line is so high. So >> in comparison to the other deficits. >> Yeah. So so that line is high because you would need in order to calculate the proper social security and Medicare the employer the employer portion you would take 6.2% which is social security and 1.45 of the wages. Right? So, we did not even get our contractual obligations met last year. Our increase was a million dollars. We needed to put that towards salaries. So, all other lines were a null. They were zeroed out. So, I mean, there's no other reason. And as
047far as the other lines go, I mean your HSA, that's really contingent upon who participates in in insurance, right? And also too single. >> I mean, that's a reasonable deficit. I mean, you know, to be only $11,000 in deficit, that's reasonable. The other ones seem reasonable to me. I'm just I'm just um looking at that social security. So I just if I could ask just another question in terms of when when you talk about the deficit for health for in for health insurance or benefit insurance. All of these other lines were affected last year as well as um health and dental insurance. All of the other lines were affected last year when you aortioned your money when you got when you when you received your budget from the city on July 1 and you and
048you didn't get nearly what you asked for. >> You um you shorted throughout the budget. I'm I'm just trying to understand because I wasn't here last year to know how the budget worked out. So, how many lines were shorted >> like actually I could actually forward you that tomorrow. I can send you um what the actual financial walk was from last year and what was approved and I think that would probably give you some insight on the lines. Um obviously there were a number of lines that are going to have a deficit this year in the budget because we only received that million dollar allocation. Okay, thank you. I appreciate that. >> You're welcome. >> Um, also, uh, Jackie, please make sure that all members get a copy of that as well. >> Okay. >>
049Any further questions from anybody? >> Mr. F, I don't want to take away from questions that the board has, but I I do want to make another comment relative to the employment issue. If if there are no pending customers. >> So, um again, our our health insurance has been an issue that we're we're everyone is aware of. Uh last year at this time when we did our first budget workshop, um we also had a high number. We we were already looking close to 5% increase um when we when we talked about rollover costs last year. So, um, those those driving factors this year is obviously there's a there's a huge increase with health insurance. Our own self- insurance with our advisors saying 8% and then the custodials going 15% is is a much larger increase
050from last year. So, you're looking at that 5% at first workshop last year, 8% this year. So, um, but like last year, and this is where I want, you know, this is where we need to start having discussions. I mean, it goes beyond this night right here. when we're talking about workshops um and discussions that we have amongst ourselves and discussions that we have with the city was uh you know last year the city's option was not fund health care we're going to make a reserved account and that worked out very well you know when when when they did that um if they do that again we can lower that health care number and then we can talk about additional staff and other areas of need and we're not presenting a high number to the
051city. Some other options that have been talked about in the past that again has to be a collaborative effort with the city if that's what they want to do is there's always been a discussion that since health insurance is the city's health insurance plan, they control and operate it and we're just a part of it that if they remove that line item from our budget. If they take health insurance outside of our budget because they because as you look at historically back from and we only went back to 2022. I'm sure if we went back further than that, we would find issues with health insurance beyond that. Um, but since 2022, they have covered substantially the overages in health insurance. We're talking about almost $6 million in coverages since 2022. Um, if the city just
052wants to take that line item since they control it, um, we would eliminate that line item from our budget. It would decrease our overall percentage and we could work on presenting um a balanced board of ed budget that funds the needs of the school system and keeps the relatively the relative percentage low, you know, for the city to approve. These are all options to consider, but what our goal was tonight was just to present the numbers as is um and be very transparent in terms of the needs of the school system when it comes to contractual obligations uh and employee benefits. That's all I wanted to say. >> Okay. Any uh questions based off of the Dr. Sarinage or Jackie's comments? Last call. I don't see it. Very good. Uh I believe that's all that
053was on the agenda for tonight. Uh our next meeting is when Dr. Cerninich, >> our next meeting is Thursday. Um Thursday we will present operational issues with our budget. Um between now and then, um as we just talked about tonight, um Jackie will make sure that all board members receive that information that Mrs. Pazo had requested. Um we are open for dialogue. Um, please feel free to call me, email me, contact me about any information that you may want to see that we'll have it presented for the next budget workshop. Um, and I do want to just impress on on everyone, even not only the board, but our viewing audience, that although we're presenting um tonight a projection of over 8% increase, that's not our final projection. I know that makes a great headline and
054then the paper may say tomorrow, board of ed presents 8% increase to the city. We are not presenting that 8% increase to the city. We are talking about what the actual numbers are. Um that number will be finalized sometime after next week um when we make some decisions about where we're going to do with the budget. But until then um the board has the right to say to administration cut this, add this. Those discussions need to take place in the city and hopefully we find um a number that we're all comfortable with um to send to the city to work with them so that we can get fully funded for next year. That's all I have to say. >> Excellent. Seeing no one comments, I'll entertain a motion to adjurnn. >> I'll make that motion
055to adjurnn. >> I need a second. >> I'll second it. >> Thank you both. All those in favor state by saying I. >> I. I. >> I. >> Any being opposed? Motion carries unanimously. We'll see you all on Thursday at uh six o'clock. Correct. >> Six o'clock. Yes. Happy new year everyone.