001Yep. Everyone everyone for for the finance committ and uh and Jason. >> Okay. Welcome to the board of education uh regular meeting of the finance committee at the board of education office 3 382 Longhill Avenue in the first floor boardroom Tuesday, November 11th, 2025. The time is 5:31. Can I get a roll call, please? >> James Orizetti >> here. >> Joan Littlefield >> here. >> Patricia Mooden >> here. Anthony Smearagino. Also in attendance, Dr. Ken Serinich, Jackie Tulings, Tracy Hussy, Kate Coutach, Lauren Rosner, Jason Nevs, and Amy Romano. >> All right. Can we get a ride rise for the pledge of allegiance, please? >> The flag of the United Okay. Any approval of the agenda, please? >> I'll make a motion to approve the agenda. >> I'll second. >> Second by John. All in favor?
002>> I It's stuck. >> Motion carries. Um, review and approval of the following reports to the committee. Uh may can I get a approval of the finance meeting uh minutes for September 24th? >> I'll make a motion a motion to approve those minutes. >> Thank you, Patty. Thank you, Anthony. All in favor? >> I. >> Any opposed? Seeing none, motion carries. We get a public comment. Public comment. Anyone here wish to make a public comment to the finance committee? Seeing none, we'll move on to the agenda items. Finance uh report. It's all yours, Jackie. >> Good evening, everyone. Uh, tonight I will be presenting um expenditure report that reflects financial activity for the three months of expenditure 2026 school year for the period ending December 30th, 2025. Total certified staff shows a year-to- date expenditure
003of Total non-certified staff shows a year expenditure 7 million. Employee benefits count five health insurance a year expenditure of 4.9 million 47% of its budget. Annualize the health insurance has expenditure of >> Yeah. Could we make a uh get the uh comment for the line item? Um under healthc care is budgeted at 8 million. >> Yeah. >> Mhm. >> And we asked for 12 million and we're given 8 million. We ask what's the uh >> with the 2 million reserve and we were denied that. >> So we have a projection of 16.8 million and we are currently at 4.19 million 48.7% of healthcare. Um the committee recommends sending a notice to the city uh alderman. I think it's a good idea. >> Yeah. >> Again, I think we sent one >> last year and the
004year before. >> We sent one last meeting. >> Probably not this year. >> Okay. Can I get Can I get a motion to authorize the letters? >> I'll make that motion to authorize that letter. >> I I'll second it. >> Thank you, Patty Joan. >> Second it. >> All in favor? Everybody's in favor. So motion carries. We'll ask the chairman to draw up a letter with the superintendent notifying the uh city fathers and mothers of >> and mothers >> the sisters and everybody else >> of the projected overage paycheck. >> Okay. Total professional services shows a year-to-ate expenditure of 1.15 million. professional services fed account 5336 deficit bins requiring significant um you know this this is a line where they moved from tuition to professional that's why but at the end of class at these
005total tuition showing a year-to- date expenditure of approximately 5 million and an unfavorable 195,000. Excess cost grant funding will be allocated 551 bed public 55 bed private year-to- date expenditure 27,54,000 for all favorable approxim with 34.1% offended 5.9% then I listed last September of 2024 the year-to-ate expenditure 26 million7,7 the board of education laid an overall favor approximately 5 mill 3% of its budget expended seven and I added the year-to- date health insurance. Yeah. Does anyone have any questions regarding expenditure? Jackie, the in the spreadsheet um print out for period 2026 period 02 are these through August or through Okay, I was looking Okay. A little bit later. >> Okay. >> And and the sped expenditures we expect adequate. >> Not sure how much we don't know the excess cost hasn't yet excess. >> Okay.
006So there's going to be question. >> I I >> Anthony, go ahead. >> My question is that um yes, you're going to send him a letter. We all agree to that, but there's other areas for stinking too. I mean why just tell them about one thing bunch of things we then passion point that that would have covered probably that so I'm saying is we might as well say here we are at this point but that's only question >> that's a that's a very good point we are over in more than just >> oh yeah >> healthcare And um with the with the expenditures showing the the overages they are u my question to the committee would they recommend that this the superintendent uh freezing and reducing expenditures and areas >> you know >> he usually
007does >> and we we usually But understand that we have very few dollars to freeze at this point that it's not even going to make a significant difference on >> where we are in the in the areas. Yeah. And I don't even know and Jackie, I don't mean to put you on this like just in terms of percentage-wise of how much money we have. I'm going to say that flexibility the the instructional line items is what is what we would freeze. And that's >> at this point, Mr. Superintendent, I'm not asking you exactly what you're going to do. I would ask that the board uh recommend that you do what you can to freeze and uh reduce expenditures. We're I mean the healthc care overages, this is not a one $2 million overage. This is
008extraordinary. >> Mhm. >> But and and I would just explain myself. We can and we will and we have, but you're only talking about hundreds of thousands of dollars relative to what we can freeze. >> I'm going to make up the eight mill. >> It's it's not even we're not even looking at I think a half a million dollars I can freeze of what we have left to freeze. >> I'm still asking the committee for that recommendation because uh this this shows the due diligence of the board of finance. But we showed do last year after a while >> and each year and each year we send the send the superintendent notification >> and I just you know point of order to the to the finance committee to Mr. Rossetti's recommendation. I mean, there's a
009certain point where we still have to instruct students and and if I freeze the little money I have left, you know, here in November, how will we continue to instruct students for the rest of the year? I mean, we're we're going to run out of operational money to to run a school system, let alone I mean, unless we're talking about cutting programs, which I'm not recommending in any way whatsoever, but are we going to are we going to tell our teachers no more copy paper for the rest of the year? I mean, are we going to I I'm just I'm just trying to I mean, that's in essence what we use the money that's left is to just do consumables, you know, things that are are, you know, and Okay, >> I fully understand your
010point. Joan, you have a question? >> Short one, I want to make a point. Um, I I think it might be worth stating in the letter if if the superintendent can provide some language for it to state that the the consumable consumables and the instructional materials are already cut back as far as they can be cut back just to show that cost containment is already taking place. and we're already we're already carrying over a lot of the cost containment that we started a couple of years ago, you know, with the April um school shutdowns and things like that. >> So, if we can demonstrate that the um the cost containment is already as tight as as feasible, it makes it clear that the that there's no way to make up these shortfalls. I I didn't
011say that, but I I would think that a notification just to uh to make sure that we are doing everything that we possibly can for a reduction. >> We have been to Anony's point, >> it's we're not we're not at the point we're not at the point that we are going to be out of money in springtime. We we are there. >> Yeah. >> Okay. So So >> to Anony's point, I mean, we have done this in the past and we continue to do it and this budget was bare bare bones. I don't see any harm in in the letter going to the superintendent. He already knows what he has to do. I believe he does. Um but >> I just basically formality from from us. >> Yeah. >> Uh so either either uh it's
012a yay or a nay. So Anthony, >> I say nay. >> Joan. >> All right. Hearing a door. >> I'm just asking for recommendation now. Yes. No. Send a letter advising. Oh >> yes. I'm sorry. Forgive me. But as far >> to the superintendent >> well a notification to the superintendent >> from us to him >> perhaps if we phrase it appropriately and in a in a very supportive rather than an >> you care to craft it all for diplomatically crafted. So and this is I'll go on record to say that >> to say you know to continue containing costs as best as possible >> you know understanding that things are already tight. wouldn't say like, "Hey guys, you got to tighten your balance." >> Make a motion to >> You don't need a letter.
013You just make a motion. >> Yeah. >> Do that all the time. >> Okay. >> To continue to contain costs as best we can. >> Can the finance committee all in favor of that? >> Okay. I I I agree with what John said. >> John, you want to phrase that? >> Make um make a motion. >> Does it have to be better than what I just said? >> No, you just said it right. >> I think the superintendent is sitting right here. I think he pretty much gets discussed just >> the finance committee is is u >> I guess recommending >> so so I'm I move I move to recommend to the superintendent to continue his cost containment measures that have been carried through thus far >> due to the extreme over >> All right.
014So that's good. >> You got a second Anthony also second that. Okay. All in favor? All >> favor. Okay. I so >> I have I have another question. Um school bus fuel at 87% refresh my memory is all the fuel in our pocket locked. But but the budget once we hit 100% worse, we still have to pay when we're >> there isn't something the city's going to fill in blank. Okay. >> I there are certain things with the bus contract that still so gray. >> Is that a comment? >> Yes. Um Mr. Romano. >> Hi. Um okay. So, I was already proactive once I saw the numbers and I said, "I'm going to send a letter." >> All right. >> I did that right now. But I just want to say I was sending the
015letter for a reason. More just focusing on healthcare. I mean, if we look at last year's budget, we were able to mitigate certain things and we always are able to mitigate certain things. We we do we you know, we we do. But um the reason why I didn't start including like everything else in the budget because I think that healthc care is is it's double like there's something wrong like so my letter is a little bit different. I have it written here already. It's more saying like hey something's wrong. We're double the amount of what we normally are like this is alarming and I would please request a meeting to have you know and I just sort of threw that kind of like hey hope you don't mind but this is what I would like
016to put in the letter. I think that they all need to sort of sit down whether it's Jackie, it's Kent, whoever it would be, you know, for us and them to sit down and say and with insurance broker and say what is happening with these costs because is it just that they're just all piling in from summer? you know, is there something that someone got really sick and I was just going to ask, you know, high claims like before we all start getting like, >> you know, even worried more worried about everything else, I think that they need to explain what is happening with those claims coming in and they could analyze them and break them down that and then Ken could report back to the board. So, that was what my letter is basically
017saying. I think a great idea. >> You want me to read it? >> I can read it. Well, just um if we can add to that on behalf of Jimmy and I who will not be here after this meeting either. So >> and you so the on behalf of the three of us >> if you we're cuz we're running away. Um, >> if you if you can say, you know, this is our notice to the board of alderman that it looks like we may have up to $16 million expenses on on healthcare costs and we're only budgeted at 8.1 or whatever it is, >> then it it helps us because we won't be here later if the city comes back and says the the board that was finishing in November 2025 is going to be
018held liable for going over budget, >> right? >> And then move it and then move into the discussion part of it. >> Yeah, I mean it it does. If you want, I could read it out loud. >> Yeah, that'd be great. >> What I wrote? >> All right, you have a minute. >> You sent it over. >> No, it it doesn't. I just asked Kaylee to type it. Um, dear board of alderman members and me already. After reviewing the board of education financials through September 30th, I must bring to your your attention a significant and urgent concern regarding our healthcare expenditures. Our current spending is averaging 1.397164 per month, which is nearly double the amount allocated in our approved budget. This level of of expense is unprecedented. I can't even talk. Sorry. President and if
019continued, it would represent an all-time record high for our district. Given the seriousness of these figures and the impact that they may have on both the board of education and the city's long-term financial stability, I believe it is essential that we address this matter promptly. Although my term and Jimmy and I are both on this letter concludes at the end of the month, I respect respectfully request that a meeting be convened between the board of education, the city, and our insurance brokers. Such a discussion is necessary theory to fully evaluate the current policy, understand the drivers and assess projected trends for the remainder of the fiscal year. Thank you for your attention in this critical issue. I strongly encourage timely collaboration so we could determine appropriate and responsible path forward and then I would sign
020in. Is that sufficient for everyone? I can change it >> one at a time. >> Finance meeting. >> One at a time. >> Go ahead. You have something? >> Yeah. What I'm saying is going back to what I originally said is that we're not going to shock them once or you going to shock them again. You look at these numbers, we're going to be we're going to be below budget on other items. So, it's not going to be just that. I I think that we should really took a take a look at it, you know, and say what is going to be the total projected uh loss. That's what I'm mean. you're you're going to give them that and eventually you're going to say to us >> why why didn't you tell us about this
021other stuff? >> That's my point. >> We we to your point, Anthony, last year uh we did come under budget in a few certain line items. We uh also uh but we're pointing out the the main our main problems here, right? which are which are just that last year was healthcare and sped and the finance committee has been saying for the last two years my tenure that we cannot predict sped or our our financing of healthcare it's been a total since uh co it's been totally unpredictable off the charts and this is this is right here right now. This is the worst that I've seen. >> Mhm. >> Okay. We are Oh, yeah. >> This is This is the worst thing. And And here's the thing. Um >> I don't like leaving things for other
022people to clean up, but this this is going to be We We are notifying them. We notified them last month. We in September. Uh we Amy and I both sent a we both sent a letter. who wasn't exactly sure on the uh numbers that Jackie gave us tonight. Projection is double our budgeted for healthcare. >> Can I Mr. Superintendent um to to Anony's to point and and I respect that point of of sharing uh but I I want to bring a perspective of the other variables we have somewhat control over. We also are going to get, you know, excess cost grants back to try to subsidize. So, so that's a still a moving target. >> The the critical thing about healthcare is >> we have no control over it. Not only how it's driven up
023by the cost of the employees, >> but the selection of the plan wasn't even ours, right? >> We we don't even have say in terms of what plan we're using. That's driven by the city. They chose the plan. they they they >> and all all of that is done through city. So that's where I mean we have done analysis of our budget. If they if the city if the city took healthc care out of our budget and because they select the plan they took it out of our budget we we would be on budget. We'd be able to work within and and stay stay on track of budget. But that is I and I know we talk about special ed but there's variances there but the healthcare is the number one driver and if anything
024to satisfy your point with the letter my recommendation is that we send them the latest financial report so they can see all >> you knowific I know but again with the I mean I know we send it to them but but again you send an email you don't know if that email is opened up and read this better directly pointing at something with something attached, >> right? >> Question. The um why why do we have to be with the city? Why can't we fit it out ourselves? >> If we went to if we went to a state plan, which uh has been a recommendation, >> between a few people, >> okay, >> we would at least know what the costs were. >> Yep. >> And we could budget. We being self assured you do not
025know you're taking the risk. Sure. Could we save money >> and I agree maybe >> and Mr. We have in the past we have in the past been done tremendous with it in years past but not lately not in the past four or five years >> and again to to >> when we were brought to the table there were times we were brought to the table our our recommendation and suggestion was for us to explore the state plan and such but again that was our recommendations we don't get final say that that final say less um >> but we can I'm saying if we that's we could I mean and we and we send it out. >> No, we do we do not bid >> more money that's went in our budget anyways. So, say
026we wouldn't even have the money to cover it if we left. >> We would be like 100 teachers again on the state plan at that point. The cost of the state plan is still more than our 8 million in our budget. So, if we say guess what, we're leaving with what money? >> That's really what the end result. And one of those aspects there is and if we if we left the city's plan that would be at a detriment to the city because the city benefits because we have larger employees and then how would they react to that fiscally in what they allocate for us if we bailed on their plan. I mean that's it >> and and I do believe that I I have sat sat in on a few healthcare meetings and I
027think it they go by your past prior year expenses and then they kind of average you into the pool where you're sitting at. So then you know we're we're not going back to $8 million. Not even with the state plan. You know the state doesn't want to lose money either. I don't know what the state has I don't know what the state has in mind for you know subsidizing health care plans for schools >> but again that >> they do it anyways >> a teacher buffer >> right >> with a lesser plan >> with a high deductible >> what's that >> a high deduct high deduct >> high deductible and then then also the >> no no he's talking about the >> the cost for single plans family and family plus one and you know
028all that all comes into all it's all >> well I mean my recommendation again was to send this letter I understand anony's point about other things but I think um sped might be a little too premature these these numbers are just through September 30th I would let that ride a couple of more months in my opinion because I think we could wait on that and see but healthcare when you see this coming in there's this is something wrong like sped we're used to it seeing negative you didn't get your ex's cross Yeah, it's it's it's a little early. I'd be waiting on sped this. You need to have an actual meeting like in the next couple of weeks. We need to sit down and find out what's happening with our claims. Bottom line, like we
029need to see what's happening with our claims. >> I wanted >> I think that's what's important, you know, and then Anthony, watch the numbers and then and and then make that decision in 60 days. I wanted to ask Amy, do you is it strategic to use the 1 point whatever million per month or do you want to shock them with the potential annualized total of 16? >> I can still have the annualized total in there. There's no there's no way Joan there's no there's absolutely no way even from what numbers that we have we can predict the final number as there's not >> no no but but in in the letter the annualized amount at this pace that's what it says because all of us >> which can total to I could just change that
030I could add that line I could just say which could total to approximately$16 million it's trending I could have adjust line. No problem. >> Jackie, do you have anything further is that we have to >> you know Jackie, you need to sit down. What's happening? That's what's important. >> Jack, the account 5627, the school bus fuel, I know you said that was you went for an RFP, is that propane or is that diesel? That account 286 >> 286,0007 >> uh 5627 school bus fuel. That that should that's propane. >> That's prop because we're we're mainly propane now, right? >> Oh, yeah. >> Yes. Okay. Run by propane. >> And then the the account 5412 natural gas and propane. >> Do we know that uh would that be the same price? >> So natural gas and
031propane that's the dollar amount to run the building, >> right? But the RFP, does that include? >> He So Santa Fuel gave us a different price for that. And he actually came back after the RFP and lowered it >> gave us a better rate, >> right? Cuz the amount of of fuel. Okay, good. That's I just wanted to understand that. Okay. Cuz he's good. Okay. >> Yeah. No, he did did really well. >> All right. >> Okay. And we're running short of time. >> So, you want me to just add in there that you want me to total it out to 8.8 million average? >> Okay. >> I'll have Kelly adjust that. >> Uh, Mr. Superintendent >> and we'll sign. Do you have any comments? >> Uh, no. I I shared my comments. I know
032we have a sensitive time schedule because we have se several meetings. >> Okay. Uh, the chairperson, this will be my final finance meeting. Um, I know that later on tonight we're going to be asked to ratify a teachers contract. Um I am under the assumption that I think it would be only fair to saying to ratifying the teachers contact of the full to the full board uh new board because we're going to be handing the full board a lot including this budget and someone may have some ideas. Um I mean I I was on the teachers contract uh committee. I think it's a fair contract, but someone else on the new board may have some different ideas uh to it before we signed off on it. >> Sorry. >> That's just my comments. >> You
033have something to say, Anthony? >> Yeah. What I'm saying is that we were informed during the process of >> I see that >> the negotiation. >> So I think it's only fair. My opinion that it should be us does it the new people coming in. Are you going to judge? >> That's my That's just Anthony. That's just my comments as the chairperson of the finance committee. You can do what you like. You're going to be on the board next year. I'm leaving. Not going to have any say in it. Um neither will three other two other people on this board. Uh if you think it's fair to hand someone a contract and not wait a couple of days and let them review the contract, uh that's your opinion. That's not my opinion. >> Yeah, Jim.
034>> Okay. That's my uh chairperson's comments. Motion for adjournment. >> I'll I'll make a motion for adjournment. >> I'll second.