001Yep. >> Roll call. >> Mr. Bennington here. >> Mr. Anderson >> here. Miss >> here. Algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. We'll adopt the proposed >> Mr. Ben. >> Yes. M. Mr. Anderson. Yes. Our first York remind us of our vision which is where passion drives exemplary education. And we do this by inspiring our students. Collaborators, innovators, lifelong learners and empathetic citizens accomplish. So I want I thought it was important actually every time I speak first. when I always think it's more important this morning than ever to remember that we're focused last year and then the next seven Now we're now. So I wanted to share with you the timeline and this
002is this is here for discussion uh that we thought we would kind of lay out for everyone. metabol. So obviously this is Thursday. I really would like to nail down some today and I have already set up and so we'll need to work on time later and I realize But whenever we will send my Monday message to staff and this timeline today I will We're looking now for official approval, but not looking for a vote on this. >> We don't need a vote. >> The board is comfortable with this timeline as unless there's other discussion. >> Um on the 10th, uh we'll be meeting as to the publication and also final feedback. So at that point they've been working diligently on a massaging that we have a good target number. We're pretty close to that.
003But I think there's a couple things that as an outsider when I came in I asked a couple questions about things that I saw that were missing in my mind. So I just have people investigating those to see if add to the list to be able to take something else off. So we've got administrators working on the other note is we're getting very close tested with that list right now because there's people lives that potentially be affected and obviously want the board to be able to see that. But we also want to be careful about not having to move out until people are actually just know your position could be reduced available but we don't want them to hear about some presentation or some link. So as this calendar hope I think works to get
004the board up to speed on that but at the same time keep it close to our chest until we can unveil it publicly on the board of the 22nd. I don't know how >> I I I don't know how much felt. I felt like we did not get much guidance. Okay. Now we we we obviously are going back to um Katie's earlier point. Obviously the reductions all the builders have looked at is trying to minimize the impact on students. Of course at this point we're beyond that. So the question is what going back what do we have to do and then what can we stuff that we want to do but can't right and so I think it's really and the really the real question is what the right number is and I'll talk about
005that in my presentation a little bit question I think there's this tension between what was asked for what we shared and if there's additional because I I felt like we did have a discussion that was broader. We weren't asked to do specific purpose for that. So that to say that we didn't provide enough input. >> I'm not I feel like we provided the input that was requested. >> Yeah. I don't I don't mean it that way. I didn't feel like we were given hard guard rails. We were given some general feedback. And so I I I take back what I tell you like that and I think rightly so the board didn't say hey look at these chunks but you gave us a broad guideline prioritized >> so what I'd like to think this is
006an important part of the conversation but I'd also like to make sure that you talk through this get that process to understand if there's more. >> Yeah. So, one of the things um you know administrators and directors kind of had a target number to to look through um percentage- wise within their budget and really prioritizing like compliance and safety. So, what are the things we're required to do? What are the things to keep students safe? And so, those were kind of like the starting points. Um and then looking at you know ultimately like what's not required um to to have to implement. Um of course obviously like instructions student support I mean those things are all certainly valuable but there's a limited number of things we only really a limit number of things we don't
007have to do. Um and so it's it's really was kind of looking through that lens. Um and then also that student experience, you know, what types of things um aren't required but maybe have a bigger impact to student experience. Um but it's really challenging. I mean, there's just things that again there's only a limited number of things as a district we're not required to implement. Um there's truly not a lot of um quote unquote fluff um in terms of what makes us us. So, but that's really what we were looking at. Um and >> well, one of the guiding documents I noticed I was looking at state mination. >> Here's where students experience something that they experience foreign language and those are things that are not required and cut over million. you're going to when
008I grew up they actually did that they actually but now Well, the next step is the next step is that we're going to talk to this OPEG group that was kind of assembled. This will be a conversation more about feedback and how they're going to share. It won't they won't see a reduction. will not certainly but we do want you know I'm new here so it's good to have some council on this is something that didn't go well last time this you know but we're going to get some feedback from them on the 10 as well is going to be a very busy day starts with ATM we have and then Merson and will be here for personnel also that day and they'll that that list that we're working that we worked on. So that
009they'll get that list there. Then on the 11th will be president with them a little bit more about some of the reductions we're talking about. on the 12th in the buzz I'll provide an outline received throughout the week. You'll get very detailed recap of the conversations that we had. Um, this is something that will be all throughout the week again on the 18th finance. That would be the last look at that list before we actually can't possibly take into account all of that. when there is clearly a teacher or a staff member that's done that will take some work to get done. We will attempt to get those done on the 19 byent recommendations. So that's kind of the way we plan to go out here. [Music] But we're being very careful with this. We
010should email you the information, but then public pressure, >> which is why I think that many meetings are going to be great to be able to You want to talk about the timeline? My my part I'm not the timeline at all. So that's that's really up the board here. Is there anything not? >> And by the way, we the other thing we can do is briefly individually. >> Yeah, absolutely. >> Right. So, we've got time set up obviously personnel committee is uh as the public so we can be a lot more candid there. Finance will have to be somewhat measured but individually we can sit down if you want to talk through through some of these things. So obviously we don't want you to be surprised in the 22nd once you had a chance to
011digest it and and know that it's been thought you know thought through and the other thing is we want this earlier than we did last year and again and I think the other guiding principle is whatever we commit to we plan on doing right I mean I think we got some criticism a little bit we brought some things back now justifiable Well, we did pretty much everything accepted brought back and this is this is going to be >> that was the comment I was going. So the timeline and then yeah to your point I was also difficult as last year was and it was difficult. This feels like guiding principles to try and keep it out of those conversations. and I'm going to talk about that next day. >> Yeah, the four and a half
012was our original target. Dr. Anet and I talked about that the right number should be higher and I'll show you why. But in the end, I mean, you know, we're going to take your take your guidance on that. And >> so And again, by the time come back You've got also looking at those types of scenarios build% part of the guidance. >> What's different with this proposed conversation? >> Guess the question would be was that the guidance that was building I I think it's guidance non-mandatory elementary kind of cut what So I guess maybe what we're looking at last time that was a little unclear what There wasn't much. No, we had the general converseneral priorities. I think the timeline inuties expect Obviously, there's individual items that you may comfortable with, but >> I have
013no interest in picking things for us. understand what >> our hope is that we have feedback from 22nd you've seen it so we know >> like Randy kind of mentioned one of the things uh that I I can share without kind of disclosing you know too many things ahead of when it's really more finalized is we actually started last spring going to state minimum what are the state minimum requirements in different areas like for high school graduation special education, um, class sizes, you know, what what levels does PE a requirement for? Like looking at all of those things, starting with a state minimum and then once we had the target, walking like kind of walking that back. So if this is a state minimum and we now have a target of what we need to
014reduce, let's look through the lens of okay principles, what do you safely need to operate your building that you would want to walk back from state minimum, you know, and then okay, obviously like compliance wise, you know, what needs to be in place and then of course, you know, instructionally, you know, what needs to be in place to give students that that best footing. Um, and kind of like walking it back from that based on the target. um is kind of where we started. It's really challenging. It's really challenging. There's a lot of different opinions on on what's important. Um but again, this is a this is a lot of money. There's not a lot of there's just not a lot of extra things that you don't have to do. Um but also kind of
015looking at um you know is there a way to spread out kind of you know or or reduce some of the damage to certain programs without completely eliminating or not. So kind of looking at those things. Um but I mean the reality is even with doing that there's going to be less opportunities and and for for kids there's just going to be you can't cut this amount of money and not have it impact the classroom. It's not It's just not possible. We're going to be um patient toward the end. Um so laugh it's I should say it's it's um August review. It's not really a fiveyear forecast anymore. I'll talk about it anymore. It's actually the current year plus a three-year forecast. And just a reminder, this is this was originally a forecast where by
016law set up to make sure we have a conversation about long-term financial planning and it's a basis for our course of 12 certificate which says we're able to pay contracts. We have to say, "Hey, we got enough money to pay this contract out." And then Department of Education state auditor use this information to identify atrisisk districts. And now there is an additional end to this conversation. And the bottom line is it's been set up this way to justify tax collections and our cash balances. It's a it's a and so the structure has gone beyond just financial planning to to some other um um I'm going to say agendas. So again, you guys have been through this a couple times. Chris is not, but just remember this is a snapshot today. In fact, I was tweaking
017on it yesterday a little bit. It's based on a set of assumptions. That's what I'm going to really share with you. And of course, we know state of budget is on a bianium and it's always a work in progress. And with with the with the new statute, it's going to even be more work in progress, but you'll really get updates every month on this. It's just I don't always change the forecast. And then of course out on DW site there's lots of information and all those are are here. Um let me just talk about timeline real quick because sometimes we got to step back picture in January the organ before the organiz at the organizational meeting before we have a tax budget hearing and then then the board approves the tax budget that essentially is
018hey county here's what we're going to spend over the next 18 months please collect the taxes. Okay, in February then now I have to give an update on the three-year forecast. So what used to be the November update will now be in February essentially. Okay, instead of getting the May new forecast in May, we're getting update in February and August is actually the new forecast. So it shifts the whole whole timeline. In March, the board approves the tax rates that the county has put out there. Um most of the time traditionally that tax rate approval is a rubber stamp because we don't sit there and go hey county we think you're wrong because they're going to collect everything that they can and and in this county that'll continue right now with our current tax budget
019commission met a strike and James Furl and let's see if Paul gets elected the judge or not Paul Dobson but um you know they're not they're not politically bent on tax like some other counties you know, they're they're supported. And then we start our budgeting in March, April, and May. So I in March, I start getting things out to the buildings and the directors. And then April and May, I work them on the budgets and then those budgets roll up to appropriations. So we start with budgeting and then budgets roll in appropriations. So in June, you approve the current fiscal final permanent appropriation and then you you approve a temporary appropriation for the next fiscal start. Now, in August, we'll do a three-year forecast, which is actually the current year appropriation plus the next three
020years. That's the difference. So, the current year is not supposed to be a forecast. It's supposed to be the appropriation. And there and and that that's an important distinction because philosophically for some treasures, those two appropriations and forecasts are two different things, right? I may ask you to appropriate more than I think we're going to spend. So, I don't have to ask, right? So now it's important those my numbers are always fairly close. I just got to make sure those are even close. They don't have to be exact. They have to be close enough. And then in September you would approve the current fiscal year permanent appropriation by the end of September. So what I want to do this month they're giving us the October to do the forecast but it really doesn't matter. I'll
021explain why. So on the 22nd I'm going to ask the board forecast and permanent appropriations and we talk about more finance too. So the impact of an August forecast just so you know we don't have official enrollment numbers until October. So I don't know and I'll talk about that my assumptions. I'm making some assumptions about enrollment but I don't know what the funded enrollment is. I know what our backsides and seats are because in Patty Har's work and we have that but that doesn't necessarily it's proportional to our funding but I don't know exactly particularly if there's change in the high school and the other thing is obviously we know what the less are so we're going to do a forecast in August and not update until February and of course we have the levy
022all right so let me just remind them where we are so we did a May forecast I always look at bottom line now with this new so the August forecast and the May forecast we've shifted a year right so just so you know when we look at these things and I'm not going to go through and compare everything from May to August but I want to compare a couple things in May I forecasted this year definitely spending 5.9 million have a ced cash balance of 19 million which I'll we'll get to the date two cash days later the updated forecast has about 400,000 more um deficit and that's just because of things I found in budgeting. I'll talk a little bit about that. We still end up better cash balance wise because we ended up
023last year better cash balance wise. Okay. And so and again looking at the bottom line and comparing the same years we end up even with this forecast right now we end up a little bit better than we did in May. So you look at 29 as a benchmark, we're 26.8 million deficit. We're at 22.5. Obviously, we can't be there legally, but that's just kind of And this is before. Okay. All >> that's actually the May. Yeah, that was was actually presented in May. You may want to check >> they should be >> because what happens is um it's way the the Yeah. That's why if you look at the we do that in that's the way the software works is that once the finaliz um Okay. So, I'm going to focus on August where we
024are today. So, again, you guys, if you've seen this before, we're good the next two years. This is without any new money and this is without any additional reductions. If this holds true, we'll end this year at 89 true cash days and we'll end next fiscal year at 45. The 4 and a.5 million where that number came from is gets that 45 true cash days to 60. Okay, our minimum. And so that's where Dr. Anet and I discussing whether or not that's the right number that maybe we should target higher than that because literally that 4 and a.5 million sprees us by another year and so that we should look for a higher target. First of all, there's no guarantee we shoot for six, we'll get exactly six, but also that gives us a little
025bit more room. The 62 cash days really is our our hard minimum, right? So, that's kind of where that four and a half so we can have that discussion again. I'm going to come back to this at the end. So, just so just hope that that makes sense to you. That four and a half was not just pulled out of the air. It got us to that 62 cash days. So again this forecast of no restoration eliminating staff of programs will go on fiscal watch in year three and we're talking 4 and a.5 million keeps us at 60 days of 27 without further without additional le okay with the levy with the 11 million levy this is what the true cash days look like. So again and again when we talk about this we We're
026good for 27 28 you know 29's far enough out the new bianium it's going to look a little bit hairy for lack of a better term and obviously fiscal year um 30 we'd be doing something right we're going to be we back on the ballot or other reductions along the way. So just to put that in perspective, you know, the levy ask is it buys us a couple of years which is what we wanted and there's no and there's no restoration of limiting staff or programs with with the wedding that's questions come up with people is this keeps us where we are today. So just a couple so I'm going to talk about revenue just a reminder 69% of our our revenue comes from local sources real estate public utilities income and then 26% from
027from the state at this point and this year you'll see our state funding goes up changes in the in the in the um because of a couple of things mainly enrollment growth bump because we've been enrollment growth over the last five years for a high performing district that high performance funding. Okay, so let's talk about revenues. I'm going to go line by line, but just I'm going to be real quick unless you stop me. There's just just so you know, right now one of the changes in this forecast from May is remember there's lots of legislation out there to change the calculation of the floor. I've taken those out. We don't know what's going to happen. 200 mil floor is still in there as currently defined by law, which means we're at the floor with
028a fixed sum levy on top of it. That could change. Um, so just so you know, so that's a little bit more optimistic than the May forecast. One reason why our results, you know, cash bounce a little bit better. And the big assumption is 12% valuation increase of 26. I've talked on that post Australia post on that. That's probably a little bit low on that, but um I kind of feel like that's a good spot, particularly knowing that there could be some um other property tax legislation that so it's kind of a you know pick your poison at this point on that. Hopefully the board's okay with those. But so you do see some revenue growth and that's because we're at four. So if that changes that um keep perhaps utilities we see the decrease
029mainly to um some depreciation of those things. But there is some information coming across my desk that the utilities are doing some grid upgrades which would go the other direction. So some of those losses would be maybe softened by some um upgrades in the grid where we get more valuation. We get very little pipeline money. We get some. So it really doesn't impact us that that much. So just kind of be aware at this point income tax. Now this is one I Um I've I've downgraded my um our trend has been over 5% on income tax average between withholding and non-withholding. Our non our withholding is down a little bit. So I I reduce this a little bit to about 5% versus six and a half% growth. So it just again it's a little bit
030conservative here on growth. We still expect to see income growth on the income tax. Okay, grants and a this is um we don't know what's going to happen in the next two years. We see a nice boost in our unrestricted aid. That's because of enrollment growth and because of high performance. They're that the they're not funding the formula. We're essentially no longer on It's 100% implemented, but we're not on the formula. And you'll and you'll see that um drop off in in coming years, we'll be down to 10% state share by 2030 at this rate. Well, you know, we you know, we are still around 20%. Um and with with this year's um with the performance piece and the enrollment piece, we're actually up right percentage of those two those two. Okay. Now, >> if
031they were using updated base cost >> would be up 20%. The other thing is and this is this is going to be tricky and I just want to be really transparent about that. Our initial budget seat numbers has down significant. The big graduating class go through that bubble's gone. our enrollment HBI growth, correct me if I'm wrong, is down a little less than expected. So I I've for this year alone, I've decreased our enrollment by 100 students. Now I still have our growth continuing by 1% in future years, but this year this is showing this is indicating a flip. Okay. Now come October numbers on let's actually get the funded numbers then I'll know better. It's just because our enrollments down this will be fun by 100 less because of the high school because some
032it's not always one to one. So it's something to be aware of. Um restricted grants and aid that's that's student wellness that um some special ed and I've been back and forth on this. I'm a yo-yo. But um threshold cost special ed we get we get mixed guidance sometimes in a state how to handle this stuff. We're putting it back in a restricted funds even though it's it's a it's a reimbursement from a previous year shows up back here. That's why it's received a little bit higher number this year but and CTE is small part of that. Biggest piece of that is gifted and um student wellness. So those are the two biggest pieces of the numbers. student wellness and gift is based on student count and sending student wellness students a lotment that you
033know was restricted to how we spend that unfortunately now it's going to be a little more difficult to actually spend um because we don't have we have a gifted coordinator re and there'll be buy some materials but we don't have personnel on that and student wellness is not we don't have a hard time spending that because we're able to um for example all our building um health aids can be that money can be used for that. So as long as we have a health base um state share that's just homestead roll back as long as they're willing to do that because there are some conversations at the state on you know phasing that out. So right now I'm not assuming no significant changes. And the last one is all the revenues. The biggest piece of
034that is interest and obviously you see that earnings drop and as our cash balance drops that's the revenue side the expense side going back to Dr. explained earlier. Here's our expenditure categories. 82% of our expenses personnel 11% is purchase services and special ed is the biggest portion of services. Then line by line. Okay, I'm one of the things that people have a hard time where is those cuts, where do they show up? Because it looks like, hey, we spent almost 46 million salaries last year. You're slightly down. I don't these millions of dollars in cuts. Well, let me um this this graph I think shows it the best. This shows year-over-year salary expenditures by source. So, this is where we have so green is certified staff. Um the the red is um classified, the orange
035is a admin and the and blue is all other supplements. This is changing. >> This is change. So you can if you if we had a normal year, this bar would be up here because just look certified salaries year-over-year. We have last year almost $2.4 million. Even with the reductions, we saw a slight increase in salaries for certified um all supplementals and alters down a half million classified down 300,000. I mean admin down 300,000 down 400,000 in uh admin. So, and obviously as we you can all you can you can guess when you look forward where are the opportunities you talk about reductions it's not yes it's still in these other areas but it's not it's not the same order of magnitude right so that's where that's kind of where cuts get buried because you
036have these inflationary built-in increases for steps and education levels and all that kind of stuff and the certified when you you know, 45$46 million in salary and 36 million of it is certified staff. That's that's that drives the numbers. I'm sure they did other so going back to person going back to salaries. Um big assumption there's no we have a hiring freeze on 26 and beyond. There's no money built in the budget from personnel. All the increases there are just due to steps and um negotiated increases >> in the last budget you put in a couple >> um there's a couple for for for special ed parents and monitors that kind of thing and I think there may be one position I think it might be one certified position >> so but essentially you know
037$100,000 It's not I mean it's significant but it's not essentially a free any hiring only for compliance reasons case loads for special ed primarily um benefits again here's we do see you just a slight increase um no major changes right now in the forecast the 5% health insurance increase January 1 um meeting today with our actu and stuff and we will be able to if not 22nd October 24th where our premium increase is I'm feeling really good about that 5% I said it may be less hoping and that less could be 1% could be $100,000 savings right to the board share of health insurance so it is a it is a big deal and and and I can you get into health insurance discussion we're looking at the numbers We were our health insurance last
038year, our claims was were really high, but we many of those high claims are no longer on our insurance. So, but insurance and retirement are the two drivers there. Obviously, retirement directly proportional to salaries and insurance is all based on. Again, here's the same chart year-over-year. Okay. Yeah, we still saw a little bit of an increase, but you can see we've done a pretty good job, held the line on, you know, some of that salary benefit rolls into here and then um and some of these things though recognize that um it's it's enrollment, right? So, we may have a staff member who retires with a single plan, but we get a young family. So those things are hard to park purchase services. These are all inflationary increases for the most part. In fact, I'm still
039um I work on these numbers. Had a meeting ESC last week. That looks like our special ed services with ESC are going to be down, which is a good thing. Um I think I've captured all those savings, but um there may be a little more savings there. and just number main number of pair of professional we spend about $3 million for PSC and special ed support and again here's here's purch same thing purchase services year-over-year and that blue if we just had inflationary growth it would be up here so we've actually so and this is also where gifted shows up that those features that we that we do the purchase service That's what they're the biggest bulk of that negative blue is the >> part of yeah part of our gift work we're direct employees
040of district part of it we contracted through lake west ESC and utilities are I'll just say right now we're seeing higher not utility not usage but rates I think some of us are seeing that at home too supply materials. This one, this had me baffled. I said, "Why did it go up so much?" I find it because one of those duh moments. We a lot of our school supplies we bought through what we call student fees went into uniform supply fee and we spent out of there. So, it was outside of general fund. We brought all that in general fund. So, there's revenue that pretty well offsets all of that. It's just that we brought it in. We brought it for for accounting reasons as well. accountability. We brought that into general fund rather have
041this out there separately and that's a discussion for another day if you want to build why we did that but um it does make the buildings more accountable having I've actually had some conversations on the building principles on I we don't set their fees they work together like elementary have the same fees but we're finding out you know sometimes it's building principle um preference on something. So you really need that if your family pay fees and you know recognize anytime there student fees it's not 100% right free and reduced students even though you know we're at 15 13 to 15% are not paying these fees um capital outlay no real major changes here um we have one bus lease that maturity started a new bus lease that you're aware of and that's where the slight
042is James and I are having ongoing conversations. We will present at at the board meeting. I say capital plan. I want you to see what we're thinking is coming out of general fund. What is coming out of permanent improvement? It's it's not necessarily you're approving all projects. You're kind of proving the philosophy of what we're doing. Um I will say this, we may have to buy it's in I have I have $50,000 in in here to buy a van. um what I call we have a need for our special needs which $90,000 includment and and um and general fund but we haven't decided yet. >> All right. But so what's your jump between 27 and 28? >> Mainly inflationary anticipation of um >> trailer doesn't happen till 20. Oh 28. Yeah, that's >> those are
043trailers. >> Yeah, we buy we start buying trailers in 2018. Now again with enrollment that could we have not done a reassessment on that. We need to um the big low are um no major assumption changes. These are our house bill 264 loan which is well before my time that last payment is in 2030. So that that goes away and the rest of that is um the general fund share of our energy project which by the way we just got $25,000 rebate on. So that was nice to keep that. And then finally other objects that's mostly fees we paid the county treasur county auditor and the state for collecting taxes. That's the biggest fault for that swipe face. They go up. Well, thing is as tax as your tax collection goes up, those fees go
044up. So more property like with the when the levy passes those fees will go up because they'll be collecting more 11 million and they even now we don't have a high level of delinquencies in this county at least in our district but they they get 5% delinquencies. So again, going back to numbers with the levy, this is, you know, so again, no restoration of staff. We end up, you know, obviously in the out years. We're going to have have to have some serious conversations on what the next step is, but you know, we do have the next couple of years to be able to plan and work towards, you know, what we do in the future. I believe this forecast is um conservative in in that it's reasonable. The biggest my biggest concern is the
045property tax reform and that gives you guys if you watch the news that can take any number of forms. Um we expect that the um the the ballot initiative on eliminating all property taxes will happen November of 26. And of course if it gets there um I don't know what So again um slightly higher revenue expenses forecasted for 26 again levy $4.5 million reductions just maintain 62 cascade and um property tax. So that's that's kind of the bottom that's kind of the bottom line. Going back to our original conversation, um 4 and a.5 million I believe is our bottom. Can't ask for any less reductions than that, but we think we need to be closer to 6 million to give us a little more space on on that end. Um and plus again, I mean,
046you put $6 million in C, you're going to go after it, but there's no guarant, you know, personnel related or Now, we're going to have a bunch of retirements this next year that could shift things. Um, but those are all unknowns. So, I stop. I think the process you go through to come up with your assumptions always solid knee-jerk reaction. You're probably more optimistic about the state of the economy in the out years than I probably am. It's crystal ball. So, 27 28 29 you've got you're pulling through with the increase in income tax collections through those years the property tax property valuation those out years maybe maybe not but they also don't really whatever I would disagree with 12 versus 10 or eight or not going to move the needle on this so give
047us more thought I'm sure we talk about it more in finance but nothing here jumps out at me We're reappraisal next year county 25 are still 30%. So even across the state you know it's still really up. Yeah, I think if things hold up in the next 12 months and people don't realize that our 24% on the reappraisal year was small compared to many countions Now, sorry, I just wanted to make sure we were good with the numbers. >> I I took silence. That's I'm moving on. So, be much more. Um, so we have the 4.5 million question, right? I'm very sure that >> I Yeah, I would like to see what it looks like. That's my previous comments about you and my inter some other things uh impacting later years. I don't like leaving
048a future board with just 16 days with the cash outstanding kind of at the end of looking at here. That doesn't sit well at all with me. But also say if you come back and see what those six million are between the four and a half scenarios A or B One thing this slide shows you too the impact following the reduction. So you notice that following year even though we're kind back to normal you don't see the same trend of increase because of the cascading effect. So you know the reductions in this year will look similar here or even more and that also lowers these bars a little bit. you don't see the same grow the impact of that compounding I want to be careful that we don't employ side minimum but I think basically
049because whe There's so many. I appreciate I that's a piece where I'm not organiz I was gonna say we can't plan for that truly >> 40 million 35 36 million goes away immediately. >> Yeah. >> We're we're we're closed. >> Yes. All right. The buildings are open and empty. >> Superintendent treasures show up to work. That's about it. >> That's about it. >> Are they going to become a property management? >> I guess right these two days assume four and a half million. >> They do not. >> Okay. So 4.5 million 27 >> to make 60 >> and then 2028 is there'll be a couple. It would Yeah, it' probably it end up being um >> you probably end up, you know, maybe, you know, >> no be less. It would less than that, but
050it would be you'd have some cash left. >> Yeah. >> Okay. But essentially, you'd be out of cash. We would we'd be borrowing make payroll in January, February. >> Yeah. So then it's really about what's the number like in 28 because in theory we don't actually have to be fine in 27. Now we have to change the board policy on days but that's our decision. >> Well the board policy says that we're we're projecting less than 60 days. Superintendent treasur set a plan to the board to get us to 60 days but but the board doesn't have to act on it. We just have to present a plan. >> Exactly. by the way. >> no, no, no. But but if it's but it's an option that's on the table should we choose to take it.
051So I I think that's the but again I think but six right you'll get what three next you're still not. So the reality is the the only way out of this is real conversation versus If not all what is interesting um this district if you look at our discounts our homestead roll back and stuff like that our homestead which is the over the over 65 lower income is very very small. We don't have a ton in that category. Our retired folks, I'm not saying that's that minimum is pretty low, but they're they're they're a little bit higher income than a lot of areas. So, that kind of stuff, those kind of reforms don't necessarily help our seniors as much other things. Have we done everything? Well, we did we did the state minimum exercise and
052what we would look like, but I don't know if we we didn't like forecast that out like >> it might be just what or 77 of Yeah, at some point we're going to hit that lower bound on this is the just basically class you know that kind of gives you the max >> I think as long Yeah, >> you're talking about access to >> specifically I'm going to presume getting ahead of my skis. We're talking about student safety both physical and mental well. >> No, no SRO's, no building health aids, >> right? No AP classes. That's what it's a real clear communication really diplomas don't happen >> because there are some people that will say >> mean state minimum day like you're you're talking it would be unrecognizable >> no >> you know we do
053that exercise I don't know But we still >> Well, that's going to be an honestly that'll be an exercise we have to do if the levy is >> that what's um what's the sense from the board on our 4.5 versus you know 6 million target what's your >> I like the idea you know What else would be on that? So >> and recognize when we say all buildings the elementaryaries are all going to be the same. We try to keep curriculum consistent operating across the building for equity for lots of reasons but equity one of them and then and then we already know that the burden's going to be at the high school right now. You know >> can I just clarify? So, you would like to see what the reductions would look like at
0544.5 and then what they would look like at 6 million? >> Well, I think we're I think we've got the tier of all reductions, right? If it adds up to six and a half million, we're going to have priorities on them on them already. So, if we get to 5 million and we're satis we don't want to cut these one and a half, then we just don't we don't use we don't use them. That's what they're saying. I'm I'm just thinking like to turn it into a presentation like like >> look at it as these are these are the cuts to get >> these are the additional cuts >> six okay >> we break it up >> okay >> there's probably not a lot of discussion >> okay >> because I do think So we
055may keep for we may be able to keep high school bus transportation out of the 4.5 to make sure everyone can get to school but that 1.5 my guess is the transportation transport >> that's the discussion I want to have candidly what I'm hearing is that we're no longer talking about four and a half we are really talking about six We're talking about six. >> I mean, are we looking for a list of seven that we debate to get to six? Well, that's what we have room that gap is $20 million a lot of options. We don't have a lot of options. [Music] >> We have the reduction figure, but we we haven't like built it into like a forecasted forecasted out. But >> can I ask like what would your going there's not necessarily
056like a state minimum class size. What would your class size threshold be if we're doing this exercise? because that will I need to know like what are you are you thinking 30 kids in the class 27 kids in the class like what are you thinking >> and yes so so because that >> there's no there's There's correct me if I'm wrong um educator but the there's not a a number we know that there's a number on the effectiveness of classroom size and like lower grades smaller numbers etc and contractually we have some target but it's not binding in that hand. So um and and from a state funding standpoint the formula is based on considered optimal class. Now, we're not obviously on formula, but use those class sizes to kind of some of our thought
057process. I think that that's a yeah, when we talk about state minimums, are we talking about the formula class size, are we just saying every class 30? I mean, that that is that knowing that 82% of our cost is in personnel that I'm not Yeah, there's more like you know in your elementary school it could be your teacher teaching music and art not a great place to go but I'm personally I values so I'm not and I think in that we're going to see what the minimum start to look like. I think I think we're asking to ask for that found >> and so but there are certain things So those things have been still number but we We say, you know, we put them in our spreadsheet. We throw in those numbers. But that
058retire anticipate retiring throw that off. Um there's a lot of just a lot to make sure is what we're after. days. I think it's not >> if we cut in 2027. Yeah, I think that's the g7 and gives you a few would not be necessarily negative in 28 just would be essentially well >> I don't think there's a dollar number >> oh wellatically there is but >> it'd be it would be an interesting exercise to to know what um that that minimum would be because I'm guessing I'm only guessing that you're looking at that's what you're talking that's the order of magnitude you're talking about past 27 >> right next to that and layer back and what I'm hearing all >> of exactly right that's what we're >> four and a half not put six
059out so we need expectations a little bit. Just recognize that six million there still could be individual items that are state minimum just not across the board. >> Okay. >> Right. So just recognize that we're we're inching that inching that way and maybe pick and choose where we can go to state minimum. >> Yeah. If I hear six are Yeah, I thought about that. I'm not I gota figure out how to do that because it's um depending on split between personnel and other things but probably not this for sure you know it' be interesting to see where you know I don't think >> well my Again, I I think I need to do that exercise exactly because I think in 28 you'd still be reducing 27, you don't pass 11, November 26, you're making significant
060cuts again in 28. And I just also want to continue to say that my interest concern what are we what are we but even bigger we don't Yeah, don't get a good test. >> It is about the experience. >> I think Susan, you're right. 62 days is just a it's just a number. >> It's a benchmark. benchmarking, but it's not >> it's not that great of a number. >> We're trying to get them back. >> Yes. >> Well, it goes back to some folks that said, "What happened to be like Anthony Wayne? >> Table conversations. What he prior priorization I think at that point I think at this Why don't we build our presentation talk about exactly what see if I can build a spreadsheet to show that cash flow with those in I wouldn't
061call it as good as I can get that point show that maybe those impacts are a little bit better. I'll take these numbers provide a base and I'm going extend them out those those kind of reductions that helps. >> Sorry, can I ask just a clarifying question? So you just want to see the 6 million or do you want to see 4 and a.5 million and the 6 million? >> I just want to see 6 million to to me after this discussion. >> I I think the prioritization is what gives us four and a half. These are what we would cut first and then >> Yeah, we just have a go back to have some additional conversations and we've got about a week. So, So, um, this is a procedure just so make sure the
062board forecast. I'm not I'm putting I'm not going to spend a whole lot of time at okay with that. I mean, probably missing the public facing side of it. I'll do a few slides, not >> I just want to be make sure I'm your in terms of Well, we don't always know. Yeah. I've been here. It goes back so many offerings for our kids that in order to get They're outside They are awesome. 19erson. >> Yes. >> Just information. So ask me if you We'll put that notice out. But he is celebrating the United States. student always interesting to see how processes Well yeah remember that sixth grade seventh grade and eighth grade test results actually previous that night to get it done. But now he's got a whole lot to celebrate.