001Hello. It's um Tuesday, January 20th, 2026, and um this is the meeting of the Graten Board of Education at 6:02 p.m. And um I am calling the meeting to order. Um in attendance, it's a virtual meeting um or remote meeting, I guess we call them. Um, and in attendance is uh for board members Sean Corkran, Mike Whitney, Jen White, Jay Whitoff, Ian Thomas, and myself, Adrienne Johnson. Um, and uh, we may have a couple of board members um, coming in a little later in the meeting. Um, we also have our superintendent, Susan Austin. Um, I see Clint Kennedy's there. I don't know if he's if he's going to be participating tonight, but um, >> he is. He has a place on this with the CIPs. He and Sam, >> you can blame me for any
002slowness in the slides and I will be speaking during CIP. >> All right. All right. Sounds good. Um, we also have Rita Pariac. Is that I I All right. I think that's the first time you said it out loud. And uh Sam Kilpatrick. Um, so um uh the so call order. Next item on the agenda is a budget work session. We are going to make um a little bit of a change um just because some people that we need to are have time later in the night but not right now um to speak about health insurance. Um so we are going to start with town obligations um and then we'll come to health insurance at the end after we do CIPs. Um so um I guess Rita is that you? Yeah, I think we talked
003in the meeting last week about um just a little more detail on the obligations in the 500s. So, I believe Clint is um bringing that up on the screen. And it really had to do with the liability insurance um that went up 17%. That's one of the town obligations that the insurance for the schools has been going up 10%. or we we've been taking on an additional 10% of the properties insurance for the schools due to the size and the newness if that makes sense. And that's on line 155. >> Yes, be on line is that um >> page 231 also on the first page. >> Yeah. I mean, the first page is the summary of all of all of the 500s, I believe, or >> Oh, yeah. All right. All right. Yeah. So, 155
004liability insurance. Now, I was going to ask um so so we have 10% we're paying 10% more um just because it's kind of a transferred from town operations budget to our budget this year. So, the actual increase is 7%. Is that correct? >> Yes. and and I'm I'm not 100% sure on the number because I I I have to make sure that that's the exact amount that we're but that's the projection that's in there for now. Um >> All right. All right. >> That's under 522, I believe. Right. >> Yes, it's on line 155 insurance. >> Yes. >> Yeah. All right. Um, and now, um, I was just going to ask, um, is, um, so we are now paying, is it 70% of the liability coverage for the properties? Is that correct? Or is it
00580% now? >> That I have to check into because this this um proposal went into effect a couple years ago, so I'm not sure what we were paying 50%. I have to check that, Adrian. >> All right. Yeah, I'd be interested in knowing um where we started a couple of years ago if it was a 50-50 split or whatever the the split was between the town. Um because I think it's important for any taxpayers to know that um this actually doesn't affect um the town finances at all when we just transfer from one category to another, which effectively is what is what's happening here with at least some of this money. It's it's money that we we are already spending. Um, it's just going from the category of the town operations to the category of
006of education, >> similar to when we took on the nurses. >> Yeah. All right. >> Right. But it does affect I I mean in in the bottom line, it does affect the MBR. >> Yeah. It affects our It affects our budget. It doesn't affect that that 10% doesn't affect the taxpayer at all. It's just it's just uh >> it's the transfer and how it affects our budget money. But it certainly um it certainly commits the town to a higher MBR um by transferring. >> It could. Yes, >> just like moving money into the nurses. Um >> hopefully we won't be worried about that this year. So [laughter] >> we got them in our budget for sure. >> Yeah. Um Ian, I see you have a question. >> Oh yeah, thank you. I just wanted to
007also add on to that point. Um well yeah this this transfer does uh does not impact overall tax burden to the taxpayer. It does have impacts on the board of ed budget as well as like the MBR going up but also this diminishes our ability to to put money towards students uh because we're paying for this insurance. Um so it does it's an extra burden on the board of ed uh in order to allocate the funds. It basically takes funds away from student focused spending and puts it towards infrastructure spending. >> Yeah. Or or it just makes our increase look a little bit bigger than it is, you know, our 7.7% increase look um you know, it's not that much of a percentage, you know, of the 10% of the property insurance, but I you
008know, we could we could figure that out. But but like 0.1 or 02% or whatever it is, but it does make that it's not effectively 7.7%. It's a little less than that. >> But I'd be in support of getting that historical uh analysis uh so we can get a track on it to to look at how's how it's been over the past 10 years or so and is there a progression here and what is the endgame with this? What's the goal? Yeah, that that would that would be important to know um what are I would be curious to know um how that got you know how the change happened um because I think that was before I was on the board. Was that agreed with the board or something like that or is that just
009something we were told that was happening? >> I believe that because of our graten 2020 plan and our new buildings that the liability insurance went up because of the cost of the buildings. We were told by the town manager that that would be our responsibility the increase. >> Yeah. >> Due to the larger buildings. >> All right. All right. Um Mike, you have question. >> Yes. Thanks. I I kind of raised my uh issues with this last uh last meeting, but um my my question about that is is did the town council ever vote on this? uh because maybe that's something they would would like to look at uh because it does as you say it constrains them um with MBR regards in one way and our concern is that it's um money not not
010spent on directly on student education. Uh and I'll just say, you know, in one sense, uh the liability is they're putting back the extra cost of the the buildings, the school buildings, uh to the board of ed. Uh but then on the other sense, the the town gets the benefits in terms of health insurance of a lower rate on the town side because of everyone uh in the in the board of ed. So like we're we're not necessarily getting penalized per se, but we're we're absorbing the impacts uh when they're getting the benefits both in both regards. >> Yeah. Um, so one question I have with the process a little bit and maybe Susan you can answer this but when there are outstanding questions like this one um you know and the board's expecting and
011the last couple of years I've only been on the board for a little over two years but the last couple of years we've had like a FAQ um where there' be the question would be you know underscored and and you know one of the staff members would would come up with a response to that. Are are we doing that this year? >> Yes, I can resurrect it. I mean, this would be one we could put on add to the FAQs. I don't know if we answered it last year or not. I'd have to check, but it's a kind of live document in Google and I can just have Erica because I meant to do that anyway, especially since we have a couple new members so that they can see past history. >> Yeah. Yep. Um,
012yeah. Yeah, but as far as this year as questions come up in the meeting like this one and I know there's been um questions in the past couple of meetings um where we don't have the answers um right away. They just need to be looked into um you know and separately just board member questions um is that so is that something that we're going to be doing just kind of resurrecting that that system? >> I mean I think we we should we've got a good start to it and we've got a lot of questions already answered but it would be a good way to track it. >> Yeah. So, I I have asked Erica to to, you know, get it out and we'll we'll look at it together this week >> and send it out
013as is and try to see the past, you know, we've just started this process, so I'm glad you brought it to my attention. >> All right. All right. Great. Well, thank you. >> Yeah. >> Mike, did you have anything else or are you all set? >> Oh. All right. All right. Sorry. We we let you get two sentences in there, Rita, and then we'll let you continue. So, >> no, I'm I don't have anything else to say really because I do have to look into it's a good question about, you know, where did it where did we start with the percentage and and where are we ending next year. So, I definitely have to get that um answered. >> All right. >> And I think Rita done a nice job describing the what drives the
014500s from the last budget. And we s certainly see over, you know, close to $6 million in the past for student transportation, regular and special ed. We see our partnership with learn and special education tuition at over a million. Curtain motor livery, which is really for specialized transportation, a million. New London public schools, we remember we have the tuitions for our outofd district placements and our interd district magnets. And we see New London is over a half million. Um we have other um Waterford Country Day and other specialized programs like Sharp Training um and even the New London Adult Ed which is really in partnership with Graten so that people can get their GEDs and get EL tutoring and lots of other things that come out in the brochure. So with that partnership, so those
015are really the main drivers. Um as and and also that liability insurance, right? >> Yeah. >> Did I catch them all, Rita, or do you see anything else there? >> Yeah, I just wanted to note that with the adult ed that is a grant that goes to the town. So that's mandated, you know, >> and it must be a source of revenue. We're we're really, you know, we need to um >> usually John Bert um collaborates with us on what he sees as the revenue >> um estimation and we kind of give him what we think are the estimated revenue sources so that we come together on that and have a handle and that just really offsets the taxpayer burden. It helps to pay with all those grants like Medicaid and things like that. um
016our budget, but it actually is a revenue source for the town to offset the budget for the taxpayer. Yeah. So, the the $27,000 um is most of that comes back in a grant from the state. So, as I remember the last couple of years, it's been the the lion share of money just comes right back to the town. So, it's money that we're spending, but it's not money the taxpayer is spending. It's just kind of right. >> It's funneling through our budget through into the town's budget out of our budget. So >> that's right. >> Right. That >> all right. >> Exactly it. That's [snorts] about all that I have for the 500s. >> All right. Um yeah. So um in magnet tuition, um did you guys I I apologize. That was not in um
017last Thursday's meeting. Did you go over that? The in the the projected increase in magnet tuition. >> I believe that's enrollment in the um >> increased in the high school magnet. >> Sorry. What number is it on the document? >> 172. Yep. >> We did talk about it. Yes. Let me just bring up my notes here. >> Rita, I was just This is Lori. I was just u jumping in. I think when we we discussed it at the last meeting, Rita and Susan, I think this was an area we were going to take another look. We thought there might be a little bit of savings there. That's right. We did have we did go over a potential savings. Um and I do have a document that I can actually share. I I spoke about it
018as we kind of went through what some of those cost savings, but in our first blush going through it, we looked at about a potential $685,000 cost avoidance to start with trimming down the budget. >> And there was I get think the reduction was in um boag because we no longer have to support that. the state does. And um there was a reduction in tuition for state placement too of about 150,000. So, >> but the magnet tuition, my notes state that it's marine science and friendship school. Um the the enrollment increased. >> That's true. So, we can take another look at it, but I know it's gone up >> because of enrollment >> and I believe the marine science school, too. And now there's a full pathway from >> early childhood, which we've talked about,
019through high school. >> Yeah. All right. All right. And then um just just since we're touching base on that, I'm just going to mention that um we still if if students go to the marine science, we still cover um the board covers after school activities. So if um if students go to marine science, I don't think marine marine science doesn't have very many sports. So they can come back to Fitch and um participate in all our sports teams or drama or things like that. So um >> yeah, for graten residents, we absolutely >> Yeah. if they would otherwise be at Fitch. Um >> y >> they >> and that's for everything including robotics and >> yeah, >> you know, and sports and >> so we still have some fees with those students in addition to
020having to give up some money out of our budget for the students that go to marine science. So, all right. Is [snorts] there anything else that you want to cover in this document? >> No, >> I mean the I don't know if you want me to just roll through some of my suggestions. So, I talked about um the tuitions and um that came out a total of about 300,000 of potential savings, but we can go back over that and just check on that. >> Which which which line are you talking about? >> So, that was um with 561 for special ed reduction because we no longer have to pay for the boag. We have to still pay for the special ed part of it. >> All right. >> Um and 563 which is tuition for
021state placements and is projected more at 250 than 400K. So that's a potential savings of 150. And line number 566 we think we can we'll review it but we think we can save about 50,000. So totaling about 300,000 just in the tuition. >> All right. All right. Great. Well, we'll we'll So you're reooking at these numbers and then we'll see them when we >> we're going to reook at them and we're going to, you know, as we go through this process, certainly we're going to take suggestions from the board and um we're going to keep very close track of it. [laughter] >> All right. >> So that we're all on board and we all know what's going on very carefully. So we're committed to doing that in a smoother way this year. All right. >>
022But this document is not changing this. >> No, this is my my superintendent's budget, but by the time we've all worked together, it's going to look even better, and it's going to be called the board's budget before we bring it out to anybody. >> All right. >> So, we're not going to move the numbers within this, but we'll keep track of it so that when we get to the board's budget, we have the correct numbers for the board. >> All right, >> that makes sense. Yeah. >> All right. So, I see um Jay Whiteoff is with us. I'm not sure what time uh Jay joined the meeting, but a little while ago. Um Ian uh you have a question. >> Uh yeah, thank you. Um yeah, I just wanted to kind of circle back to
023the superintendent's comment there. Um just want to check in on where we are with the timeline. Right now, we're still we're just doing a cursory look at the superintendent's proposed budget, but this is not the actual superintendent's propos proposed budget. The numbers are still in flux. >> Is that correct? >> Now, this is the budget, but as we're going through it, we're going to be looking for potential cost savings and ways to reduce it so that when it becomes the board's budget, you'll have a budget that you feel really good about. So, so how are we doing on the um the book is the book? >> Well, you're going to get the superintendent's budget book and just what you see in front of you, the object codes will be the same. >> Um and you're
024going to see them filter into function code so that we'll be able to then go through it and I'll have the elementary principles here and special education to kind of review their their budgets. Um then we'll have secondary. So we'll continue to go through the timeline but in a in a different way through the function. So now that you have a handle on what the object codes look like you'll see them in their kind of department and areas. >> Understood. So move pivoting. So the pivot when we pivot once we get that book the end of this week if I understand correctly. Um, right. >> Next week we begin >> the process of making it the board's budget, whereas like that's probably the time that we want to open up that tracker document and start,
025you know, talking about what numbers are going to move that we may want to take a look at and vote on eventually at the end. >> Well, Rita and I are going to talk about how to keep the tracker tracking correctly. So, we'll we'll look at that and we'll bring that to you. Actually, next week is the 26th and it's a regular board meeting. So, there is not a budget meeting >> until fe February 2nd, which begins the preschool, elementary, and special education. >> All right. Well, I just want to voice my displeasure with the idea that we're going to lose a whole week um of budget deliberations when it could be like that could start the process. Um, you know, we we already have a short month in February and now like, you know,
026the whole goal with the procedure committee we had a couple years ago was to try to lengthen the time that the board had with the budget so that we didn't feel so compressed uh towards the end. Um, and again, it feels like again where we're losing time. we're getting back into February again when the goal of that that committee was to get to a point where by mid January or so we're doing the actual deliberations and we're out of presentation mode. Um so I'm just a little frustrated that we're here again. Thank you. >> Yeah, Rita, some of this predates you. Um, I do want to say that we really appreciate you and I think um, with um, a lot of the people, certainly all of the board and a lot of the people that
027are paying attention, we have much more confidence. Well, I shouldn't speak for other board members. I have much more confidence that um, that things are pretty tight in this budget. So, I do appreciate that. Um, but um, a little bit to Ian's point, if we can um, you know, so I realize we'll be getting a a superintendent's budget, but there's already going to be changes. So if when that budget comes out we can have a tracker um you know talking about some of the superintendent I guess we're still in we're superintendent recommended changes at this point um you know if you've got ways you know we can we can tighten up like you know tuition and um you know the special well actually we didn't talk about special ed but but like tuition and things
028like all those line items if there's some way that we can kind of track that when we get the budget so so maybe board members can take their budget book and mark it up and say, "All right, well, this this has already kind of been, you know, been adjusted." Um, and then at the end, I think we will have to, you know, if the superintendent's budget's going to come out with these numbers in it, um, we would have to, you know, we're going to have to vote, at least the way we've done it in previous years, is vote on the line items that get changed. So, is it, does that sound reasonable? I'm >> I'm going to comment on how I'm used to um doing budgets. You know, January, mid January is really early to
029get a budget book out for a superintendent, I feel, but that's just been my past practice and my um experience. Okay. Um, and I thought getting the budget book to you Friday and having you have a whole week to look at it because it is intense and come up with the questions that makes it the board budget book um is a good thing, but that you know I don't know the history here. So, um, but I am working hard with my staff to get that budget book as accurate as possible. So, that is taking longer. I'm going to be honest. It's It's longer than I expected because the function functions are so granular as far as um the detail, which I think is [clears throat] great, but yet it it I overestimated how quickly we
030could get it done. Um you know, and like I said, I thought it was a good thing to get the book and then have a week for you guys to look at instead of just a weekend. But um >> and the narrative is really important. We want that accurate, too. So not only about the programs but the FTEES and the changes that are made because we really don't want mistakes. So we've been working on that together and know that we are committed to you know really doing the best we can. >> So when you get it and then I I think Rita's right. I think you need time with it >> to kind of get yourself acclimated and to be able to ask questions before you deliberate. And I am used to having a superintendent
031budget and then it you know tracking the changes that we recommend and that you guys say yes that's a good idea and then creating a board budget which is you know um due at I'm not sure February something. So >> that's what I'm used to. I'm not used to making changes to a superintendent's budget. >> All right. Yeah. I'm just saying because we don't have the superintendent's budget yet. That's fine. I'm saying is is is that's fine if if the superintendent's budget >> um you know but but some but to if we can just start a tracker now because just today we're saying there's going to be a couple of changes to the superintendent's budget that the superintendent is recommending or that you are recommending. Um so I'm just saying if we can start a
032tracker on that so we can keep track of this stuff um you know as soon as we know about it. So, so there's not going to be any changes to the superintendent budget. We're recommending these changes for the board budget. The superintendent budget is going to stay at the 7.7% increase. And we thought going over the object codes might give um perspective before the functions. But, you know, that's I just thought >> code tells you my full budget. It's just that it's laid out differently than a function code. >> Yeah. All right. Well, I think we're saying the same thing. I'm just not in the terminology of we'll get the superintendent's budget. >> I think we have a few changes already to the superintendent's budget. Sounds like we're going to. So, if we can just
033start a tracker >> so that we will have the superintendent's budget in hand along with a piece of paper that says and we already suggest these changes to the superintendent. >> Thank you. That's exactly my thinking and working with the department. they're the ones closest to it who can make those suggestions, you know, um they're better at it than even I can imagine. So, I've talked to Sam, I've talked to Clint, you know, so I think by working with them first so we know and then looking and seeing what you all have to say as you go through it, you might see things that I haven't even noticed or you know and and we can go from there. Yeah, I'm sure it'll be a like I'm sure those going to be it's going to be
034a dynamic process, but we're going to keep >> it will it will >> keep it as as uplifting as possible. So, Jen, you had a question and then Ian, >> it wasn't a question. I think it was finally realized that the 7.7 is the superintendent's budget. We do not have a book that's attached to it, but we did have the object codes. So our starting point is the 7.7 and any changes that we're talking about now um once we approve and vote on it will either become part of the board of ed um binder that we're going to present to the town. So assume what we saw like last week as Susan starting point. It's not like unfortunately like last year and the year before where it was the superintendent's budget making edits. it's still
035the superintendent's budget and then we get a we're basically going through the superintendent's budget now um with her and Rita and the rest of the staff already identifying areas where we can um lower in some instances and then we'll still go through it with a fine comb tooth comb after we get the book ourselves. So, I just wanted to say that I had my hand raised a while ago. So, um but I it looks like we all got through it. So, I didn't um but I just wanted to share that that's how I interpreted it. And then that's like um you know, so >> thank you. >> We are really starting the process earlier already. >> All right. Um Ian, >> yeah. Um not to believe the point, but I'll just say that it it
036doesn't feel that different. I mean, okay, I understand we're not making changes on the fly to the superintendent's budget. That's maybe a step in the right direction, but again, we don't have the full budget book. We don't have the full context uh at this time. So, I'm not sure, you know, we we're identifying early things, but we don't have the full context to weigh those changes against other ones. So, I feel like we're being focused on certain areas without looking at the whole picture. So, I I I feel like there's a there's a detriment there and that we better serve just maybe holding off on these and doing it all in one big swoop. But that's >> Well, [clears throat] I didn't want it to be premature. I just wanted to we since we were
037looking at the 500s, I wanted to share >> um Thank you. Uh I just was going to finish my thought and say like, you know, we'll carry on uh you know, and but I just wanted to register my my my uh concerns. Thank you. Well, we realize you have a lot on your plate this year with the first year, Rita. So, again, we appreciate >> Yeah, we're trying to get it as accurate as possible. >> I'm I'm sure you've been working slightly more than 35 hours. >> Just slightly. >> Yeah, [laughter] weekends included. >> All right. So, if there's no other questions on what was attachment two, um I guess we can go on to the CIPs. Um, is this going to be a SAM thing or who's going to do this yet? >> This
038is a Sam and Clint. And what um we did was actually the board suggestion looking at um last year's CIPs for the 2026 year and we actually Joyce asterricked um with the Fitch High School manufacturing center, the Fitch High School water heater and the business office software for Munis. So those were actually um those were the ones that passed through the CIP. So we wanted to acknowledge that um before we started next year's plan and and and showing you what what's been in place as well from last year to this year. So I don't know if there's any questions about this sheet. Um, but we are very appreciative of these items for sure and really looking to start Munis I think in a in the next year. Isn't that right, Rita? Because it's going to
039take us a couple years to implement it. >> Hopefully July 1st. >> Yeah. All right. Yeah. So, just to clarify, um, last year we asked for everything on this page, correct? Or everything. >> Yes. This is what we submitted. >> And what was approved is the ones with asterisks, which we've gone ahead and done. And and I'll just point out the manufacturing center. Um, that was uh that was a big win for our schools. Um, and we don't have a manufacturing center uh even approved yet, but that money um for the manufacturing center goes handinhand with robotics since they're using the same space. Um, so that improvement um also helped move the robotics team to the high school which which I think is great. >> Um, we needed to replace and and the business office
040software obviously um everybody wants to uh upgrade the software so >> we're all on board. >> Yep. And then, uh, Mike, you have a question. >> Yeah, just just two things. One, uh, I like that addition. Thank you for doing that. I was wondering if the ones that we're requesting for this year should be shifted over to FYE 2027. Uh, that's one thing. And then my my broader question is I I know every department submits their CIP request, often quite numerous, to the town manager. and then the town manager um you know recommends some for going forward for funding and some for zero and then the town council can um vote things back in or or vote not to accept them or reduce it or whatever. But is there do we get any um do
041we have any role in prioritizing um you know our requests towards the town manager or is there any interaction in that way or do do they just pick the ones they think they could fit? Um um so so my question is should we as part of this be prioritizing um within uh these requests? >> Well, Sam is usually the person who um works with John about this and you know there are times that we'll have conversations as well. Um Sam, did you want to speak to that question? I think I saw him on Clint, do you see Sam on? >> Sorry, I was looking for him. Yes, he's on. He's muted right now. >> Oh, can you unmute him? >> I can certainly try. Sam, did you hear the question that Mike raised? >> All
042right, maybe we should just um Yeah, >> if you can remember your question, Mike, we'll we'll try to get through the rest of this. >> I I will. Another [clears throat] one is could someone explain the again the Fitch High School athletic facilities? I just think it's important to explain it because of the the referendum uh that went through uh for >> that goes back to recowning the field when we didn't know that there was going to be um you know fields group. So we took it off for this next year. That was before we had voted on the the high school facility. So that was just to to fix the the lawn on the football field because we didn't have any approval yet on the fields, but now that we have stages phases, um
043we took it off because that won't be necessary. >> Oh, so we're going to see another another slide here with >> So there's another slide for the future. >> Thank you. Sorry. >> Yeah, that's all right. Oh, and um and uh Mitch is online, but um not [snorts] as a panelist yet. >> I promoted him. >> All right. >> Okay. Did you promote Sam? >> Yes, I did. >> Okay. Can you hear me now? >> Yeah, we can hear you now. [laughter] >> I was I was trying to unmute. I could >> That's why I said, "Can you unmute him?" >> Yeah. Thank god I made something. >> Got too many things going on here. >> So, um, yeah, >> Mr. Bur and I communicate and and I usually try and give him a priority
044list of what we'd like to get done. It does sound like you have some feedback going on. >> I got the point though. It's good. Thank you. >> And I know the Hbacks, we've done it in different ways. The NEA and CK definitely need, you know, you know, >> to be changed out. At one point, we were putting down 250,000 a year for like 10 years, but I think even those prices have gone up. So, I don't know if it's better to break it down to look for a construction grant or a bond or something. Um, you know, but those two schools, even though they're newer, um, they really, um, we've had that problem where we've had to the dehumidification problem where we have to run air conditioning and heat over the summer so we
045don't have mold. So, we keep those healthy buildings. So, it's just an expense until we get those redone. Is that right, Sam? >> Uh, yes, >> that's correct. >> Correct. The uh those two items are with uh John Burke and I anticipate he'll be going out to bid on those >> at some point. Okay. Okay. >> And then Fitch High School and Barnum um also need that work done. Is that right? >> We're going to be testing the HVAC systems at those schools and we'll have a better idea after the testing. >> Perfect. and the other buildings are newer. So, >> can we go to the um the the next slide? So, we were looking at what we're actually proposing for this year. >> Yeah. >> All right. Just so it's a little less confusing.
046Um I was going to ask um those numbers are the same as you know, obviously we can see from from the the 26 ask and there's there's certainly been inflation especially on things like mechanical components. Um how old are these numbers? I know you were saying, Sam, that um that we're going to go out to bid again. Um but how old are these numbers for all the HBAC upgrade categories, like the top four lines? Are they are they just two years old or are they older than that? The these estimates? >> No, just updated last year. >> Just last spring. >> All right. >> We did add um an HVAC testing repair per legislation. That's one of those unfunded mandates. So, it costs us at least $200,000 each year to have these tests being done.
047So, we're asking the town to help support that as a CIP. >> All right. And is that testing going to have to be done on a continuing basis from here on out? >> Yeah. >> And forever, >> has anyone asked asked John Bert about that? um you know if the town is going to be supporting that every year. >> Well, we're going to have a conversation for sure because we've identified this as a CIP project. So, we definitely will have conversations. I think we're doing about two schools each year and um we have to have all of them done you know within what several years right Sam? four or five years, >> 20% per year and then starting again all over. >> Yeah. So, so my question is is if we don't if um if
048the town doesn't approve the CIP for 200,000, we have to do it either way. So, it would have to be in our budget. Um, so maybe this can be a conversation. Um, whether that's something that the town is willing to to, you know, you know, look at every year and and consistently support us on this because it is an expense that we have to spend on the facilities. So, um, but Mitch, you have a question? >> Yes. Can you hear me? >> Yep. >> Okay. Um, do the values for Northeast Academy, Fitch, Charles Barnum, Kaskki, do those numbers include the cost of testing or are those just anticipated work that has to be done to the HVAC system? Northeast >> and CK are for replacement of those units. Okay. What about Fitch >> and Charles
049is for some additional units in the vintage wing. >> Okay. So, all those schools have already had the testing done. No >> testing was done at Northeast last year. >> Charles Barnum is this year and Fitch will be next year. >> Yes. >> Oh, there's a possibility of privilege here. Um, we got to get Sam's mic under control because it's causing echo throughout the whole meeting. I don't know what's going on there, but it sounds like he's got two devices open. Um, it's very hard to track the conversation with all the echoes. >> Sam, when you're done talking, I would suggest just mute and then unmute when you're about to talk. >> There there was interference on my my side. I apologize. I just closed a door. No, I think I think it's damn mute
050and see if that works. Well, [clears throat] I can't unmute. I'm gonna have to ask Clint to unmute or rather to mute me. [clears throat] >> Now, Mitch, go. [laughter] >> I got you, Sam. Is it is it worth having the testing done on the schools that you you you know need some work um in advance so you can get the total picture. >> We're in a way we've done that. I know that it was prioritized Northeast and CK because of the problems we were having this year. We decided because of the cost of it, it was so exorbitant to do Fitch with something else. um that we decided Mary Morrison and Charles Barnum because of the age um and that they'll you know have children in them um next year at least we hope
051to have children in them. So we're kind of doing that Mitch in a sense we're trying to stagger them so that it's affordable and it's by priority of the buildings and their age. >> Okay. Thank you. All right. Are there any other questions? >> I think um Clint can answer some of the safety, security, and um the auditorium phases. We've been trying to fix the auditorium. The sound is much better. The lighting is much better. I don't know if you've noticed. I could use a little beautifification with carpets and seats, but they they're working now better. So, so, um, Clint, you want to talk about that? >> Happy to jump in. Just to finish the auditorium, in phase one, we did do a full overhaul of sound and lighting, and I'm happy to report that
052those are uh fully being used, and uh we're getting a lot of compliments from staff and parents and so forth. As far as that goes, we're not losing students in certain shadows on the stage and uh the sound has been one much more clear, but two we have a lot more capacity as far as wireless mics go, feeding into a single system, etc. I know some seating was done uh with that as well. This ask is to for phase two. Uh we were not able to put in a a new high-grade projector and screen. We have done all the cabling and we have been reusing current projectors for that. So this ask would be only for the final piece of this which is the projector upgrade which are pricey and getting pricier all the time.
053So this would be screen and projector for that line item. The safety and security line that Susan mentioned is actually two pieces. It is a round four for cameras and it is a round two for the high school PA. As you all are most likely aware, you supported and we got past a round one for the high school PA. That system is installed and being tested as we speak. Uh but it is the headend. It was a $63,000 item which was hardware, software, licensing, install, etc. Uh and that is the headend that works with our current wiring speakers to classrooms in emergency spaces etc. as well as the phone the the VoIP voiceover IP phone system. This phase two would allow us to go in and upgrade all wiring to all spaces as well as
054put in uh new speakers uh a screen and panic buttons. Um, some of the benefits are to that are not only, you know, signage in each classroom, but a two-way ability for in emergency cases to listen in the classroom, to have it muted, to have it a teacher be able to speak directly to administrators on the other end, a central office or whomever dials in and has security to do so within those classrooms. Uh, Stonington did this upgrade uh, two and a half years ago. Uh, and it it really is the next phase. the head end was really the critical piece in phase one uh because we were dealing with hardware from 1976. Uh so I'm I'm I appreciate and I'm happy that that's gotten updated. Phase two again really is the continuing march to
055build out all cameras across the district that have been recommended by the safety and security uh uh committee and phase two for Fitch High School only of the full public address system. The last piece that really I could speak to here too from an IT perspective is the BR digital broadcast device. So we push uh live uh and pre-recorded material to um all three cable providers uh in the town of Grten. We have a headend that is in the library media center at Fitch High School and Mark Russell and Caitlyn Brown have done a fantastic job keeping that afloat. uh but it is way past warranty, way past uh repair parts, etc., etc. So, I am very concerned that should that that device go down, we do not have a backup system for broadcasting live
056and pre-recorded to our cable channels. Um we are obviously not seeing the same uh traction and usage numbers of those cable channels. Uh but we do know that there is a uh a certain group of our community that counts on the educational programming on that. We want to continue to provide that. >> All right, Mike. >> Thanks and thanks for those explanations. Clint, for the digital broadcast device, I was wondering, are there any opportunities for um you know, kind of shared services with the town? And I know they have a wonderful uh studio and they they serve out things to uh similar channels uh through the Grten Public Library. >> Sure. >> So they they have a sim so um they have a similar device if you will and system so that they can go
057live and pre-recorded from the Graten Public Library. We have that same system within the Grten Public Schools network to be able to do that same thing. So, if we wanted to connect if we wanted to connect to that device that's already at the Graten Public Library, we would have to have a connected, you know, we would have to talk about leasing fiber or installing fiber and having a high-speed connection directly from what we're doing straight to the Grin Public Library. >> Thanks. And if this does go forward, might make sense to kind of talk about talk with them for sure, see their experiences and and if it makes sense, get the same kind of systems. >> Uh I I do not disagree at all. And Sean Greley and I uh speak regularly uh and he's
058been a great asset to Graten Public Schools. >> All right. All right. Thank Thanks, Clint and Mike. Um really quickly, I'm going to just say something here that I meant to say when we first put this up. Um, and and people watching may have figured it out, but all of these numbers are in thousands. Um, so like digital broadcast device, it says 55. That's 55,000. So, um, add three zeros to everything on this sheet for >> Thank you. >> for those those watching. I know the first year this was very confusing to me. Um, so you know, um, I'm sure it'll be different next year when we have, you know, m or in two years when we have muness, but um, but for right now, um, just so everyone understands, add, you know, put a
059K after everything. Um, so, um, Ian, you had question. >> Uh, yeah, more like a statement. I just wanted to kind of build on what Mike was just saying. Um, I think it's a great idea to look at exploration of shared services with the town, uh, on whatever we can. And um cuz there once was a time where the uh the board of ed would have its regular meetings in the council chambers and that made things a lot more conducive for public comment and more attendees to be able to to to uh be there live. And uh the reason uh we were informed that stopped in about uh 2023 2024 was due to like some issues um like of the technology not talking to each other very well. Um because we had a series of
060meetings where there technological glitches with the sound. Um and so that's how we ended up going back to doing regular meetings at central office in room 11 which is is not very conducive for uh getting uh the public there. So um yeah, I think it's worth exploring. So I just wanted to voice support for that and I'd be looking forward to that conversation. >> All right. Thank you, Ian. Mitch, >> so we're looking at a total here of 1.7 million. About >> No, 16 million. 889. >> Okay. That's 10 times what I thought um till Adrian made that comment. Um >> well that I think the HVAC is what's really the pressing because we're talking about three um million 963,000 5 million you know 2 million and that all adds up. So, one of the
061things we had done, Mitch, in the past was if we started replacing in Northeast Academy and CK a couple units at a time and breaking down the cost, then you're talking about hundreds of thousands instead of millions a year. So, that might be something that we could also talk to John Bird about. Would that be a better way to address the CIP issue? Does that make sense? Yeah, it it does and I appreciate the answer. Um, I'm curious about one thing which I missed before uh probably because I joined late and I apologize for that. Um, was culinary arts and that's so what we're looking at $600,000 for that. >> That is to refurbish what looks like a 70s kitchen and I know what those look like because I was there. um and to really
062make it more of a culinary arts or you know uh restaurant grade. Now, we do get a Perkins grant every year, and we have been buying things like sinks and new stoves and things that we need in that space, but we had an architectural plans done a couple years ago, a few years ago, and we saw that in order to make that space more viable so that we could have more kids taking the program, it would require kind of a rehaul of the space. So, there might be some additional equipment, but I think it's more of a rebuild of the space. That's what what's driving the cost. But I did talk to um Dan Gi and Andre Bumgardner and they're looking into it legislatively to see if there's anything through state funding that might be
063able to support us. So, I will be in contact with them and maybe it's something they can come to the board and talk to us about. Is is um the objective here to get Fitch High School graduates to be able to go and work at a high-end restaurant? Is that what the what the purpose of the culinary arts program is? It's yeah, it's one of our many career pathways and it certainly is a a career pathway a lot of kids will choose even before they go off to college or you know they often are working in that industry and some will choose that as a career. So um a lot of people will say well they could go to Graaso and that's true but this is such a popular endeavor not only for career pathways
064but for life skills. I mean that was something I remember in high school that we had more of those opportunities too. So um I think it's something that's um very sought after and if we can just upgrade that space so that it can be you know um ready them for careers or life um it would be viable and certainly if the state we can find those grants that the state will pay for it that's even better. It's always better when somebody else pays. >> I agree. So, we're going to get I'm going to follow up um tomorrow with our legislators. We did talk about it. Dan and I just talked about it the last week. So, >> okay. Thank you. >> All right. And and I just wanted to mention these HVAC upgrades have have
065been on this sheet as long as I've been on the board. Um, and these units, some of them aren't that old, like the Northeast Academy, um, I know are not quite as old. Um, but that s I think that building just has more humidity than we thought. And they're close and that then I assume anyway that they that there's more humidity in that building than the designers um, realized was going to be there. Um, and they are what are those what 12 or 13 years old now on a 15-year um, expected time horizon. Is that is that correct? I think those buildings are already 15 years old. >> All right. So maybe at this point we are at the expected lifespan of the of those rooftop units in the the HVC stuff. >> I remember
066that we were told that it doesn't have the dehumidification component in it. So those units didn't really have what would be needed for dehumidification. That's why they've become obsolete like way too soon. But we figured out a plan in the meantime to do the dehumidification. It just costs extra to run heat and air conditioning at the same time. But it has solved the problem for now. >> Solved the problem at at a an additional expense, >> right? >> Hopefully temporary until we get them replaced, but at an additional annual expense in in fuel, oil, and electricity. >> You're right. >> Um All right. Are there any other questions? I >> see Mitch's hand up. You all set, Mitch? >> Yeah. I forgot. Sorry, I meant to put my hand down with that. But I I
067do I I do remember um when uh years ago they tore down the school that was at Northeast Academy now. >> Yeah. >> And we're going back about 30 years and they said there would never ever be a school built there again. And now we have one because and one of the reasons was because it's on wetlands or it's near wetlands, right? >> You got it. You know the history lesson. >> Absolutely. So that's part of the problem, too. >> Yep. And 15 years ago, they put the latest and greatest equipment in there and it's just not what we would need today. So >> Okay. Thank you. >> All right. All right. So, are we all set on um attachment three, the CIPs? Are there any other um questions or comment? I see Mike. All
068right. You got a question or a comment. >> Yeah, just quickly. If all these HVACs uh don't go through CIP process, um is there a chance that they could come back as a referendum for next year's election and or are there still avenues for state funding? I think that that's another thing the legislators can help us with. The there were HVAC grants and we I was hoping that they would be coming out this year. Um, Shannon's been trying to stay on top of it, but I will ask Dan and Andre again about that because it would certainly be better again if the state is, you know, expecting us to do this work every year, making sure our HVAC is up to par if they would help provide for any repairs that you need once you've
069done that work. So, I will ask about that to see if there's any way that we can get help with this funding and then maybe we see how we could lay it out for the funding that we don't get uh over time. Does that make sense, Sam? >> Yes. >> All right, Jen, you have a question or >> Yeah. Um in the last meeting I thought we had recommended or asked that um an estimate be put in for the vehicles that need to be replaced whether it's the trucks or the two vans. So I don't know what came out of that. And um I guess because we're having confusion on the the zeros that are on the top, maybe we just put open PN dollars, meaning like US dollar sign in thousands closed PN rather
070than the trees um three zeros. Maybe that will make it clearer for people. >> Okay. Thanks. >> I'm not sure that um we can do a CIP for vehicles. Sam was under the impression that we couldn't, but we can certainly talk to John about that. Sam, do what do you know about replacement of vehicles as far as how they get paid? I know at one point we were doing kind of a vehicle a year for a few years, >> but then you know, >> you know, the budget got tighter and tighter to do that. I recently told that we can submit them. >> You can do what? >> Submit them. >> Oh, you can submit them. Okay. Well, thanks for asking the question, Jen. I like that answer, Sam. >> Yeah, that I agree, Jen.
071That's a that would be a great way to go because um we're so far behind and this um in replacing vehicles um and specifically the plow vehicles. We talked about this last year a little bit, but um you know when we're paying for hours of of education, um it costs something like 80 or $90,000 per hour to keep our schools open. So, if we have a plow truck um that's down and we have to delay an extra hour more than normal, the the cost to the actual education is something like $90,000 in and of what we're paying for. You know, 180 days a year, you know, $90 million budget. It's it costs, you know, it's a half a million dollar a day to to educate our children. So um so these vehicles when we don't
072replace them they have a real cost to education and education is less effective at least in my own opinion um when kids are only in school for part of a day um versus a full day because it kind of throws it throws a lot of things off offkilter in in missing educational hours. Um and those educational hours um when we have shortened days aren't made up at the end of the year. Um, so, so there is a real cost to not replacing replacing vehicles, especially the the plow trucks which are are old. So, all right. Any any other um any other questions or comments on the CIPs? All right. Um, let's move on to health insurance. Um, I see we have I don't know if Lori's going to be taking this one or Rita. Yeah,
073Lori's going to help us out with this. >> Yep. Marita as well. >> Okay. >> Yep. So, uh what's the Just want to clarify what's the board's pleasure here. Um we have some information on the partnership plan, but then we also I think we're going to comment a little bit. Rita was going to comment a little bit I think on the just overall benefit cost and the increase. Um, so what's the board's pleasure? Where do you want to start? >> Um, I I guess uh start from where we are now and what we've been doing. Um, which I I assume is the um >> trying to Sorry, I got to put my glasses on. >> Yeah. So, we'll take down the first circle for the moment. >> Yeah, the first circle. I think the other
074one >> which we've asked or at least I personally have asked to know what those partnership numbers um were when we were looking that. So, I really appreciate having this all together. Um it was really nice when I reviewed and realized um you know with details that we're we're in a plan that's that's saving um you know saving the district money. >> Yeah. Yeah. I'm happy to go through the partnership plan after we've talked first about the benefit section of the budget if you'd like. >> All right. All right. Yeah. So, I guess start wherever you think makes sense. >> Okay. Um, so Clint, if you don't mind taking this exhibit down and just putting the object summary back up and then um, Rita, do you want to right >> jump in on the conversation?
075It would be section. >> We did go over that last week. What was driving the the 200s? Um, let me find my notes. Safe. I I know a few of you weren't there, so I don't I fig we could just do a quick >> increases like 15% and that's due to cuts last year um cutting 1.3 million last year out of the health insurance is going to affect this year's increase, you know. Um, and so I think the 15% is based on some it's based on the MDG MDG estimate, but it's also high because of the cut last year. That makes sense. >> Right. We have to restore what was taken from reserve in order to get back to uh a level funding. Correct. >> Yes. And OPED is in here as well. Correct. >>
076And then Social Security and Medicare looks like it really jumped up as well. >> I don't think enough was budgeted in this year's budget that um Social Security and Medicare is based on >> um projected salaries for next year. >> Okay. >> So, I don't think we I don't think enough was budgeted in this year's budget. And therefore we see the $451,000 increase so that we're budgeting it. >> Correct. It was all button budgeted I'm sorry Lori but it was all budgeted by by function and I have changed that this year to um budget it districtwide. Um budgeting by function is is so hard to do in my opinion. And um basically it's a district-wide expense >> and comp one place, >> right? Same with the workers comp, same with any benefit for the for
077the employees should be in a district-wide um function. And I think you created the dictionwide function last year, but um I think the the health insurance I mean yeah the health insurance wasn't like was it the health insurance or no the FICO was not in um the districtwide it was in each function. >> Right. And then I was just going to add the workers comp and the town pension. I believe you had just put a percentage increase on that because we didn't have the final numbers from the town. Is that correct? >> Right. Right. I went with 5% um uh I didn't don't have the numbers and you know I just went with a percentage increase on those two. >> Okay. I'd be happy to talk a little bit about the state plan but before
078we do that I just wanted to mention we're currently in an RFP process for the health plan with the town. Um so that process has been underway for several months now. We do anticipate preliminary um RFP um numbers from from plan respondent, you know, from carrier respondents um in the next week that we'll be able to share with the board. So just it it there'll be another um uh piece of information or a tool to make sure we understand you know the you know what we're what we're receiving in in recommendations for plan cost and make sure that they're in line and um you know explore what the cost would be with other carriers. So that process has been underway for several months. We'll have those results soon to share with the board. um it
079will it will only include pre preliminary um plan planned costs. It will not include initially what we call disruption analysis. So that is if you were to change carrier there's a process in which they evaluate all of your claim history for a period of time and identify what we call disruption. And that means if any member in the plan would be impacted by either a change a required change in in physician or prescription. And so then once you have the cost then you do have to evaluate the disruption factor because every carrier will treat prescription tiers a little bit differently. meaning where drugs fall on the tiers um whether their providers, their physician providers, hospitals or in network or not. So all of that will be captured. We'll have that later in February. We won't
080have that in time obviously to make any financial decisions. But those are those are the pieces of information that we'll have available if we were to consider a carrier change for any reason. though the disruption is is um some of the factors that we would have to negotiate with the unions um before we would be able to make a plan change. So I just wanted to mention that um as soon as we have the cost information they'll be actively working on the disruption analysis as well. Um so we'll like I said we'll have that to share. Um, any questions before we switch over to talk about the the partnership plan information? >> Yeah, Mitch, >> would would you mind explaining one more time the I think.8% 8% for Social Security and Medicare. I know you
081already talked about it twice, but I think I need to hear it another time. I believe we're under budget in this fiscal year that we're currently in for the Social Security and Medicare. So that's why it's such a a high percentage increase. So, what you're saying is we don't we won't have enough money to pay the bill. Is that right? >> It's hard. It's hard to project Medicare and FICA because it's it's based on actuals, not projections. So I based my social security Medicare projections on the salaries that are in the FY27. So salaries are increasing 5%. I based it on that. So it it I can't say for certain because that stuff is not encumbered. Like Medicare and FICA is not encumbered. So, I'm doing my be best guesstimate. >> Okay. Maybe that's something
082needs to be addressed next time we have negotiations. Okay. Thank you. Yeah, somebody correct me if I'm wrong on this, but I I believe that this came up last year because we moved things all over the place um among um among uh was it object codes um that they were all in the individual or the function categories um and then we consolidated into into um one function code. So I think that there was just some confusion last year. Um, so I'm guessing that readers just tightened up some of that for this year. [snorts] >> I can take another look at my projection. Social Security and Medicare is a very hard projection, but I can definitely take another look at it and um and this year to make sure that that that estimate is as concrete
083as possible. >> Yep. Yeah. All right, Mitch. Okay, one one more question. If it turns out that your estimate, which is an estimate, so I understand it's not concrete, but if it turns out it's too low, um you I thought the uh process would allow you to go back and ask the town for more money. Is that right? I mean, after your budget goes through, if you find out you're low, >> are you talking about this year, Mitch? >> Yeah. >> I I've I've never heard of that. I've believe what we would have to do is look at the overall budget and make transfers and stop spending somewhere else if we're over budget, >> you know. Okay. >> So, what when I give you the monthly reports on, you know, for this year, we definitely
084got to we have to keep an eye on that. >> Okay. Thank you. >> Yeah. So, so Mitch, we we have asked the town um a couple of years ago. Um there was a budget issue. We asked the town, I think, um and and um you know, that wasn't received really well at that time. We have a new council. Hopefully, you know, things are going to be much more positive in the future and we have much um clearer books which we'll have to thank Rita for. Um so um but I think in the ideal world I know in previous years we've done like you know Susan's done fro freezing site budgets to try to save money in other categories um so that if we underbudgeted somewhere we just have to try to figure it out
085versus going back to the town and I think um the board has done a great job with with um you know with working with the administration to do that >> versus um versus ask the town for money. So, so yes, the I think the the the system is designed where if we were over budget, we would we would ask the town for money. Um, but we try to do that as a I think it in practice, we're going to try to do that as a last resort. >> Um, >> that's right. In the 12 years I've been here, I think Dr. G, right before I got here, had to do that because of I think it was more special education costs that were, you know, we just didn't know about. But we haven't had to
086do that since then. And I'm on a good track record. I don't want to ever have to do that. [laughter] I can definitely see it happening with special ed. So >> yeah, >> like I said, we just have to this is the time of year where January, February, we where we have to really look at the current year budget and see where we're at. And that's why incumbrances are so important. And I am um teaching my staff how to audit the incumbrances because they're very important and they're very high for salaries. So yeah. and our our building administrators and our and our you know administrators at central office. We've all gotten tighter with that and really tried to work on that and I think that makes me feel much more confident. Thank you Rita that
087we really know >> what needs to be spent this year. All right. So if there aren't any other questions, are we okay to switch to the other exhibit for the partnership plan? >> Yeah, sure. That'd be great. Thank you. >> Okay. Thank you, Clint. So, let me just or orient to the documents that are here. Um, so the the first page is basically a summary kind of an overall summary of the anticipated partnership costs. Um we looked at we obviously listed the last three years of data and then some assumptions for 26 27 um plane year. So it includes the um basically town and board combined costs the um when you look at allocation rates and >> you hit the you hit the mute button. >> Yeah. Sorry. Um so the allocation rates and retiree
088rates that is basically the um rolls up to the projected Anthem expenses. Um we do have to um you'll see the the um credit that we receive in prescription rebates and the value of those that is taken off of that cost and then the anticipated um HSA funding which is obviously added to the cost. And then um the next column is basically kind of the net overall health care spend. Then you move over to the partnership rate. So um there's what's called in the first column here when you talk about the partnership rate 2.0 heep u medical RX costs. Those are what they call HEP compliant. So those are um rates for um members who comply with all of the wellness requirements in the plan. And then there's a second set of rates for what
089they call non-HEP compliant rates. Now um if you uh go into the partnership plan, you're basically grandfathered for the first 18 men 18 months under the HEP rates, which are the which are the lower rates. Um but after 18 months if you have members who are not HEP compliant then you're subject to the non-HEP rates for those individual members who are not compliant. So you're you're certainly your costs start to shift and increase after 18 months because um certainly um historical data would indicate that not everybody's HEP compliant. So you get the benefit of that for the first 18 months. So, this just kind of orients to the overall uh rollup, but I'd like to just um advance to a couple of the other slides because it does get into the detail which is a
090little bit more um information. If you wouldn't mind Clint going to the very last slide. Um this is the slide that is just the board of ed only that I'd like to speak to. And for illustration purposes in your packet it includes um this slide which is the board of ed cost only a town uh slide for town cost only and then an additional slide with this t detail where the board and town are rolled up together. So those are in your materials but um I'll just give some highlights to this document. Um it basically outlines all of our enrollments. So you'll see active employees in the plan on the left, 414 retirees in the plan, total of 57 um in the in the self-funded plan and then 94 retirees in what we call a
091fully insured plan. Um so we have um uh to clarify for those who aren't familiar, the fully insured plans are for retirees who are 65 and older Medicare eligible. The retirees in the health plan are typically retirees who are under 65 um not Medicare eligible. So they have to remain in a self-funded plan with along with the active employees. Um but what this data tells us is if you look at the total active employee costs compared to the partnership plan um it's it's a very small increase as far as uh you know the impact to active employees and what those costs would be. However, when you factor in the cost to have the retirees included in the uh partnership plan, there's a significant cost increase to the district and it would also mean a significant
092premium in increase to the retirees. Um and so as you um kind of combine those two together um they show a combined increase um to the HEP compliant rates of 13%. So, it would cost the board 13% more in our overall health care spend at this point in time to move to the um to move to the state partnership plan. Um couple things I would just like to mention related to the partnership plan. The assumption for 2627, the numbers that have been used for these illustrations are based on uh a conversation with the controllers's office where they've indicated that they anticipate because they've had some losses, they anticipate double-digit increases for 2627 July 1st. They haven't published the final rates yet, but they've given us a 15% assumption to use. Um they said they anticipate
093it will come somewhere between 12 and 15% increase on their rates for 7126. Um so that's what's been used for illustration purposes. Prior to that um they weren't projecting doubledigit increases. I think the last time we looked at it I think it ended up landing around 8% I believe. So, um, so I'm certainly happy to take questions, but, um, you know, certainly, uh, this kind of ties back to the summary page, which shows, um, if we were to consider this, we would anticipate, uh, you know, a sizable increase in our healthcare spend. >> All right. Uh, Mike, >> yes, I just uh, thank you for putting this together. is very clear description and it's uh nice to see the comparison and um and uh makes I think it makes us do this um if not
094on an annual basis like every couple of years or so uh because I think it it does does help um kind of justify this part of the budget as we go forward and and that 15% I did read in the the paper that's what East Lime who I think is on the state plan has their placeholder as an increase uh for this year. So, thanks. >> Yes, that's correct, Mike. I did hear the same thing about learn. >> All right. I I've got a couple of questions. Um the the um the prescription rebates, does that money come back to the district or does that go into the town? >> It does come back to the district through the healthcare reserve. So when we talk about the growth of the health care reserve fund, the um
095the the rebates are going directly into the healthcare fund. So even you know when we've struggled a little bit some years but we still saw some in incremental increase in the healthcare fund. That's because the RX rebates are going in there. So it does show a million7 about 60% of that number comes to the board. it gets split out and it gets put into the health care reserve um for the town and the board respectively. >> Oh, so the so the 1.7 million is town and >> board combined. >> Town and board and but the other numbers are they town and board combined. >> Um in the illustration on the page it is just the board. So if you if you look down towards second line to the bottom estimated RX rebates you can see
096the board's portion of that million7 that was on the first page is anticipated to be 1.1 million of that number. >> All right. Um All right. I I see there. Um so these are so the um um so at the bottom line in the middle um we're so our estimates so so this is just just the board >> um we're looking at 14,727,000 >> um right >> with the plan that we have now right >> it would be expected that if we went with a compliant partnership which basically that one means that the members have to go for annual physicals and eye exams and things like that. Um, yes, all so it actually there's just more preventive care that's required by the the people that are that are in that program. That's why it's a
097little cheaper, but you're using more services. Um, but you're saying that that would be um, you know, so the effective difference is is what is that? 200 $250,000 or something. 260 I mean 2.6 million I should say. Not >> right. Right. Exactly. Yes. So right now our anticipated spend 14 million726 HEP compliant spend on the partnership plan would be projected at 17,444. >> Yeah. >> So I I agree with Mike his earlier comment. We've been monitoring this, but I do think it's um you know, we we continue to monitor it and we've worked it into our annual renewal process so that we can get the rates on an annual basis instead of every couple. >> That's good. >> Thank you. >> Yeah, I think this is great as well um to to know, you know,
098kind of where, you know, why we're doing what we're doing. And and I'll also mention that for us to actually change this would require opening up union contracts or at least um making, you know, however that would happen. but like amendment changes or something like that. >> So in in the biggest union that the the GA was um just negotiated and um and I as far as I understand this didn't really come up in that and there were some changes in that contract but um but as far as I know it wasn't there wasn't a push to switch to um to the to the state plan the the partnership plan. >> That's correct. There was not not a request to do that. Um, yeah, and we'd also have to negotiate under, as I mentioned earlier,
099we'd have to negotiate any of the disparit impact items. So, when we do the disruption analysis, we'd also have to negotiate that as part of the move and have the unions accept basically the disruption. So, that's a negotiation point as well. >> Yeah. And there'd be some some um liabilities and um um that we'd have to pay out existing claims and things like that. >> Yeah, the runout claim was anticipated around 3 million, a little over three million, $3.2 million that you'd have to have in reserve ready to pay out runout claims with the prior carrier while you're still paying your premiums to the state partnership plan for those first several months. And there was an expensive insurance I remember that you'd have to also include as part of that. >> Correct. We quoted that
100at one point as uh I think a couple hundred,000 in order to have the appropriate uh stop-loss coverage to make sure that we didn't take on any uh catastrophic risk during that process. And that's something you have to buy. Um I think it's almost a plan year ahead of time. So this is something that a change would have to be almost predicted a year in advance. >> Yeah. So so it's it's a production this the method we're in saves the you know currently it saves the town money. It would be a lot to change it and very hard to switch back. So, so there are even if um one were a little bit more than the other and and it made financial didn't make financial sense that year, the next year um you know we
101couldn't just switch back easily I guess is um is what I'm just trying to say here. >> That's correct. >> Mitch did I I apologize for you know rambling on there but did you have a question Mitch? >> I did. I'm not sure if I got it answered by listening, but you you had mentioned um one of the plans that requires you to go and uh for for what I call wellness checks. Would would that result in a lower premium for the uh school district or would that result in a higher premium for the school district? So, so the partnership plan has a requirement that you have to meet all of your wellness visits and it does result in a lower rate for the member. That is the HEP compliant rate. Um, if you fail
102to do those items, then the rate increases. >> Okay. Um, and that's not negotiated into the existing contract. I I take it. Is that correct? No, we certainly have all the well, we offer in a in the current health plan, we offer wellness coverage at [clears throat] zero co-pay to encourage individuals to get all of their wellness screenings and meet all those requirements, but it's not a mandate like it would be in the state partnership plan. >> Okay. So maybe next time for um negotiation purposes we should make it such that everybody has to get that plan or they have to pay the difference of their salary but I don't think that's a discussion for this particular forum. Yeah, Mitch, just to explain that, those are both. So, the partner, the state offers the partnership
103plan, which there's two options of what the state offers and you can't make any changes to it. The one option is you're going to commit your members to getting all those wellness visits, and the other option is not committing your members to getting all those wellness visits. And and it's cheaper if you if you get the um wellness visits for what we offer, which we're self-insured. Um, so we offer an Anthem plan that just doesn't require it. I don't think Anthem, correct me someone if I'm wrong, but I don't think I don't think there's an option for a cheaper plan on what we're doing already with with the contracts. We're already um, you know, somewhere around 15% cheaper than going with that partner with either version of the partnership plan. So, we we're already saving
104money because we're self-insured um, in in going with this Anthem and then just paying Anthem to um, you know, with with Anthem's plan. But we're pay effectively paying Anthem to administer a plan, but we're doing the insurance on it. And then we just have some um kind of reinsurance coverage of things, you know, so so that we don't go too far out of it. >> So there's some coverage. >> A little bit of history being here 12 years is that we've really used it to our advantage in that the town used to tell us that they didn't want to have such a big cap on the excess. and so that we could use that during budget time. So, it has been done when we've needed to do that um to offset some cost, but we
105really have to monitor it to make sure our health savings is very healthy and we don't get into a bind where we have to pay back, you know, we always have to redo that. So, at one point, you're going to be paying back some of those funds if you've had to offset. Did I say that right, Lori? or do you have any other words for that? But we were encouraged, I think, through the town. Um, are you talking about offsetting costs in the budget? >> Yeah, through the health savings. Yeah, I think they've certainly encouraged us not to not to let it get too high, but maintain a healthy enough reserve so that you know in the more challenging years, it provides a fund for us to go to if costs uh rise above a
106a level that wasn't anticipated. It it gives us that little bit of cushion so that we can cover those claims ourselves without having to go back to the town and ask them for more funding. So that's really what the reserve is designed for. >> Thank you. >> Yeah, this is really it. It it it takes a while to get your head around the insurance thing, the self insurance thing. It uh it it took me a while. I try to pay attention to the numbers and it took me a while to kind of understand the reserve and the corridor and then you know the >> the yeah the high deductible and yeah, all that stuff. >> Yeah. Yeah, it's definitely complex and we'll have similar um we'll have similar schedules for you to take a look
107at like I said when the when the RFP is done. >> Yeah. So, it's very complex but it's also the um the the the lesser expensive option for you know for our board budget and the taxpayer. >> Agree. >> Thanks, >> Clint. You can take that down now. I think we're all set. Are are there any other questions or is there anything else to cover in this, Lori? >> No. No. We talked about the the points associated with it. >> All right. Are are there any other questions on um on this on health insurance? Anybody? >> No. All right. Um All right. Well, um I believe we have reached the end of our agenda then. Um so I will um without any objection or I guess I will take a motion and Andrea is not
108here tonight. So I don't I don't know who >> someone's got to do that for us. >> I think I think we're just going to be here until next Monday when we come to meet. [laughter] Anybody want to make a motion to adjurnn? All right. Motion to adjurnn. Second >> by Mitch. Seconded by Mike. Was that the mic I heard? All right. All right. Thank you everyone. We will see you next Monday and uh we're adjourned. >> Thank you very much everybody.