001[music] >> I'd like to call our March 30th, 2026 Reno County School Board budget work session to order. Madam Clerk, will you please call the roll? Dr. Levine? Yes, ma'am. Mr. London? Yes, ma'am. Mr. Greenway? Yes, ma'am. Mr. Arntzen? Yes, ma'am. Ms. Clemmons? Yes, ma'am. Item 2.01, presentation of special education annual plan, Dr. Beth Harmon. Hi, good afternoon, Madam Chair, members of the board. In your documents is the annual presentation of the special education plan for part B flow-through grant application. Um the purpose of this document is to provide assurances that our division certifies that throughout the grant award period of 2026-2027, we'll meet the federal IDEA and the Virginia regulations governing special education programs for children with disabilities. We're further certifying that the division has current local policies and procedures for the provision of
002special education and related services, which ensure compliance of IDEA federal implementing regulations and the Virginia Board of Education's regulations. Additionally, you've been provided documentation regarding our fiscal responsibilities of maintenance of effort, proportionate set-aside for parentally placed students in private school, and our projected spending of the IDEA part B sections 611 and 619 grant funds. And you have the comprehensive document that we asked for consent at the April board meeting. Do you have any questions? Promise you I'm always the fastest. We thank you for that. No questions. >> [laughter] >> All right, thank you. I have a question. >> [laughter] [laughter] >> Item 2.02 request to accept awards and appropriate funds Miss Susan Peterson. Well, I don't think I can be quite as fast as Dr. Harmon, but I I also would like to bring forth
003some funds for awards that we would like to accept money for. Um And so we have been notified that the General Assembly has appropriated funds to support economically disadvantaged high school students enrolled in advanced placement International Baccalaureate and Cambridge courses. Um The funding reduces exam fees for eligible students limiting costs to no more than $20 per exam and it is for students who qualify for free and reduced prices. Um the funding that we've received is 6,930. As typical our process and procedure we always bring any new grants or awards to the school board to approve the award and accept it and then we also make a recommendation to appropriate the funds from special projects in the grants fund. We do have enough money in special projects to receive this and so what I would like
004to do is roll this into tomorrow's consent agenda. Um so that we can go ahead and move forward with this grant award. Looks good. Sounds good. Thank you. Item 2.03 amendment to the 2025-2026 budget for Chapter 7 bonus Miss Susan Peterson. Wonderful. So although we do not have a 2026-2027 budget yet from the General Assembly we do have a signed 2026 budget and within that Chapter 7 documentation there is guidance um providing funds to the all school divisions to provide a $1,500 average bonus per employee for funded SOQ and support positions. We've done the math on this and we will have to sign off by May 1st on whether we want to take the money. School divisions can accept it, not accept it, or apply for an equivalent action. Um we have done the math
005and we do have enough payroll lapse that we think we can go ahead and just do a full 1,500. The recommendation will be do as what we did in the last time and we are allowed although the language is not exactly the same as the bonus that was provided last year. We are allowed to put in the stipulation that if employees have a signed contract June 1st then we can we will pay them the bonus as of June 15th. Um and I've already talked about the the timing and logistics with HR and they are on board with doing whatever we need to do. And so we would just request approval to do this if that be your desire. I do want to make a I got a question after the fact the $1,500 bonus will
006not be $1,500 in our employees pocket once the 35.4% taxes come out it'll be about $969 that our employees will see cash in their bank account around that amount. So just wanted to qualify that because I already got some questions. I'm good with I want to give them everything we can. There's not a way to manipulate that a little bit so they get more out of it in some way with a retirement piece and and when I say that I'm not talking about the VRS I'm talking more about like could you give part of this into a form I don't know what governmental 401k is it I forget what the number is. The 403b? 403b. So that they get that tax deferred and they get more of that 1,500. Um I do not know the
007answer to that that's a great question. I can look into that and get back with you. I do know from the county perspective they allow you to cash in your vacation and you can either take a check or you can put it in the in the 403b or 401 whatever it is. So that may be a good thing and it's an option right? So it would be something that you could offer to some because some may actually need the money to survive but some may want to put that back and Right. Well it's not a way to give more of it. That's a good idea too. I'll have to check with the Virginia Department of Education because there are very specific stipulations around we actually have to pay the bonus out so that might change
008whether our flexibility and how we we pay it out. I will I will find out. Okay, thank you. And everybody's clear about what she's saying this would that deal would be to use this as a retention Right. I think we did this last year right? Same process. All right, are we good there? Item 2.04 2026-2027 budget work session number four Miss Susan Peterson. I I'm sorry but I believe there's a point that that they will need to take action to approve what you just said about the bonus. Yes. Do we need to vote on that? We will get the information first and then >> Yeah, we need to wait until the General Assembly actually finalizes this. Not for the bonus it's already approved and signed by the Okay. Um but what I will need to
009get to you I will attempt to get an answer by tomorrow so that I can let you know tomorrow. Um do you want me to pull it off the consent because right now it's on consent. I'm okay with it but if there's a way to give the employees more of that to keep rather than have to give it back to the government I think it's well worth looking into it even if we have I don't know if we can Does it delay? Like if you were to do that and we didn't put it on consent and we didn't vote on it in the next meeting would it delay them getting a bonus? So it's not going to make a Put it on the April 16th agenda? I would just need to have it approved in
010time that I can certify May 1st that we're going to move forward with the bonus. So like like Mr. Linden said yeah April >> do that. It's okay. Okay. I I just I just want to give that option because I think for some people that may be a big deal. Okay. So we'll plan for the April we'll plan to not have you to approve it till April 16th. That would also reduce our expenditure if a good number of employees took that because we wouldn't have to pay. Am I right? The second the the matching piece I don't know if which piece it is but the matching piece of the payroll tax we wouldn't have to pay because we're not paying it for them. I would have to look into that. So I'm just thinking this
011is a win-win. And I don't care that's not the right word. I want it for the employee. The benefit is not to benefit us. However if that can be done it may benefit us if that makes sense. I I will find out the answer as well. And we'll move it to we'll pull it off the tomorrow's meeting and put it on April 16th. That's okay. Okay. You ready? Yeah. All right. Moving into our fourth but probably not our last work session. I did indicate that the General Assembly has not adopted a final budget so I do foresee us having to come back and provide a revision to you at some point. But we do need to go ahead and adopt a budget. And so what I would like to review with you today are employee
012insurances. I will just review the the health insurance and then touch base with you on dental and vision insurance because we haven't haven't shared any information on that with you yet. It's kind of hot off the presses. We have an updated CIP and then I shared last night the three different priority list options and we'll have discussions about that. So hopefully this will be maybe not as quick as Dr. Harmon but hopefully pretty quick. So first for health insurance just everything in these next couple of slides are just review of where we stand with the health insurance. Um to kind of just put everything in one place with a bow tie. We have an Anthem renewal for one year. This is the second of three allowable renewals and then we would go out to RFP
013with our new consultant. We are self-insured and our stop loss is at 250,000. So we have pulled out of being combined with any other entities for our health insurance plan. Um we are not going to change the deductible period at this time but it is certainly on the radar to do as soon as we possibly can. Um and we are not going to put in place a spousal exception at this time although it is something that we will have on the back burner as a possible change in future years if we think that would benefit us. What we will do instead is add the employee plus children premium tier. Um this will allow folks to uh you know we have certain folks that already want employee plus multiple children that are playing the family plan.
014Um it will also offer options for our families that may have a spouse who they may save money by going to their own employer. And so our hope is by introducing this rate yes it's going to probably cost us about 200,000 of lost premiums but our hope is that our employees will really take the time this year to investigate, to obtain their employer their spouses employer open enrollment data and compare the rates to see, you know, what financially works best for them if they have not done that in recent years. Um we are going to go through an active enrollment period this year. What that means is no one will have insurance come July 1st unless you actively go into GHR and the employee specifically selects what plan they want to have. They will not
015roll over in their same insurance. So, I just say that because that is not a process our school division has ever done. This is new to all of our employees and we will have to have a lot of communication with them. >> see what what the plan they have now versus the other four options or will they go into that blindly? And the reason I say that is if they do, I think somebody needs to expect a flood of calls and not understanding this. We go through this and don't understand it. I can't imagine what an employee goes through trying to figure this stuff out. >> Certainly. So, Innovative has promised we've added a third week to our open enrollment period. Um and you know, I'm speaking on your behalf, Mr. Bradshaw. If you want
016to jump in. >> I was going to say in GHR they're going to see what they currently have. >> Okay, perfect. And then they're going to be able to but they must actually select it. Where before if they didn't do anything at all >> matter. We just automatically rolled them. So, one of the things we're working with them Innovative and one of the things it'll my department's going to be doing it we're going to be calling every single employee. If Dr. Wyatt knows you haven't signed up for insurance, what are you going to do? Mr. Leonard, what do you want to do? So, anybody who doesn't actively do it, we're going to have multiple calls and multiple communications to make sure. The reason we're doing active as Ms. Pearson was saying is because we really
017want people to actually look at what they have and really compare moving forward and it may and in the long run save our employees money. Can I Can I add that maybe we should have in there we're not going to do the spouse or exemption this year, but maybe we should have language in there that suggests you might want to if you've got a spouse on the plan. I don't know how to do this. I don't either, but I'll ask Derek and see if there's a way to put that disclaimer or something in there. It may benefit them Yeah. to do that. And just because it like you said it's easy just go through just leave me the same. But it may benefit them to Just to put it in there or to encourage maybe
018encourage to [clears throat] do that or recommend. Yeah, it's definitely going to be more work this year to do this. We know that. As soon as she said the word active I was like, "Oh Lord, here we go." >> [clears throat] >> Because we did it one of the time I don't know if you correct me, but I can't remember when it was, but it's been a while ago and I remember all the phone calls and floods that we truly because we're going to contact every single employee and say, "You had insurance. You haven't selected anything. Are you sure you want to drop our insurance as of July 1?" In fact, if you have some retirees, you might want to add one for a week or two. I mean, they can come in and answer
019those questions. Correct. We also need to make sure we have people that are good with technology to help the people who aren't. I Dr. Wilson, I will say if Tracy's on the phone with them and I think Innovative's going to do the same thing is we've actually given them access to this piece of our GHR where when they're actually if they're talking to you they can do it with them. Okay, good. Um we have helped our employees cuz we do have a lot of our employees that especially some of our bus drivers and things that just uh struggle with the technology. So, we never let that be a barrier even though our whole society's technology now. Um we try to help them as much as we can. Just so you all are aware of that
020too. Dude, that's awesome. I still struggle with technology so I get it. So do I. And I do it every day. You use AI now. >> [laughter] >> That's right. All of his speeches. That's what I I call and say, "What would Brent say? AI." And Mr. Bradshaw, is Innovative still planning on coming and and sitting on site in different locations? >> They are. Last I heard they are. We have a meeting Thursday Okay. with them with open enrollment with Innovative. So, hopefully I'll have more detail on exactly cuz what I'd like to do is actually put out a schedule so our employees can see that they'll be at Northside High School on this time this day. And so so they can actually go by and see them. Uh cuz they are one of our
021vendors. So, [clears throat] therefore we can put them in our buildings to help our children you know, employees go through this whole process. And I'll get off of this subject cuz I'm the one that has to leave early today, but I want to also make it note cuz I had a good meeting with uh my counterpart on the Board of Supervisors today. And one thing she brought up was is that their employees insurance was much lower than ours. Right? And that's because they have a lot more cash they can throw at it than the schools. And I don't think everybody understands that. So, when you hear we've separated and ours is higher than than the county, it's because we don't have the they haven't tightened their belts. They're tightening our belts. So, we don't have
022the cash they have to put towards this. And I just want to make sure that's clear. We're doing everything we can for our teachers and staff. Well, I think also that that's a good point in terms of raises because I know in the past that there have been comments made that well, why do you guys not give the same raise, right? Well, I mean that's kind of a dumb comment because we have specialized jobs, right? That have a their own specific market for what that job is. In any pay study that we've brought up we know that our pay needs to be higher, right? And then we're also having higher insurance costs. So, it's You're right. I agree with you 100%. I didn't say it as [clears throat] eloquently, but I don't know how eloquently
023it was. That's it. >> [laughter] >> I mean, it's just the reality. It's the reality. >> mean, you can't just get a teacher somewhere. They are specialized. They are specialized people and we need them. Thank you. All right. Um So, then the next item is just the health >> [clears throat] >> insurance plan design. This is what we showed uh back in January. There are no changes, but like I said, I just wanted to have uh all of the information on our health insurance plan together. And then finally uh from our last meeting this is the recommended premiums and you will see in bold we did add um the employee plus children. Um and so, that's what we will have set up and we recommend. So, now moving into dental insurance. Um I do apologize
024that it's taken this long to get the information to you, but uh changing um our consultants and and working through the minutia of everything it just took a while to get this set up and get the information finalized. Um We do have um a Delta renewal contract uh for 1 year starting July 1st. Uh we are fully insured. Um this year we did pull out of the consortium. Uh so, we were a part of the consortium with it was uh some dental folks and some non-dental folks uh with the City of Salem, the county and ourselves used it for the dental piece. And then in addition, City of Salem, did I say that before? The City of Roanoke was in the dental. City of Salem was not in dental. Uh Salem schools and the Western
025Virginia Water Authority were all a part of the consortium. Um and they went to bid and their consultant was USI. Uh so, we wanted to go ahead and pull out of that consortium so that we could uh make changes to the plan design as we wanted to and not be beholden to what uh Roanoke City or uh the county um wanted in their plans. Uh and so, unfortunately, we were not able to make any plan designs this late in the game, but it does pave the path so that next year maybe we can um add a low option for anyone who may want it or possibly orthodontia if if that's something that is overwhelmingly desired. Um so, uh it our premiums did increase. They haven't increased for uh many years uh and it was just
026time for the premiums to go ahead and increase. Um so, here is the Delta dental kind of the plan itself. Nothing in the plan is going to change. So, everything on here is basically the same slide as what we had last year. And then the Delta premiums are uh laid out on here. Um So, you can see the impact. Um They also have uh several programs, the Healthy Smile, Healthy U program. Um it is for members that have heart disease, cancer, diabetes, a weakened immune system, kidney failure, or pregnancy and they um just have additional um program uh for those folks who qualify. They have a special health care needs program uh that will have extra cleaning, getting exams, and treatments for folks who have sensory sensitivities, behavioral challenges, severe anxiety, and other barriers to
027treatment. Uh they have a behavioral oral health report. Um it's a dashboard that helps them um identify at-risk populations, monitor changes, and help influence behavior to uh get everybody in um and get their teeth cleaned as needed and and fixed as they needed. Um they offer virtual dental visits for 24/7 access. And they also have a program for amp lift amp amplifont. Sorry, I should have tried saying that before I came here. Amplifon. Um and this is up to 66% of retail savings on um care through the partnership with that entity. So, uh just some uh variety of other uh pieces that folks can benefit from with our Delta. Uh moving into our voluntary vision. uh so this is a uh fully paid by the employee. This is a completely optional program. Uh the renewal
028that we got will be from July 1 of '26 all the way through '30 and the rates are not going to change. They haven't changed from last year and they're not going to change in that whole time. Um and there will be no change to the plan design or any any other rates, like I said. So this is the Anthem Blue View Blue Vision. Um and they have a Anthem Whole Care Connection program, uh which provides them with a a dedicated account team connected vision and medical to help um with your overall health. And then they will provide health reminders um to our employees as well. And so the benefits are exactly the same as they are this year, they will be next year. And then uh you can see the rates are off to
029the side and they are not changing. So that's what we have for our employee insurances. Moving in, um the capital improvement plan that we are going to uh provide for our final adoption will be the one that includes the renovation of Arnold R. Burton into an alternative public day school uh for the 15,000 15.4 million dollars. Um and I did go in and take a look. Uh I sat down with Mr. Kegley's on some of our pricing and um went back to the to our costing sheet for uh all the remaining schools, North Side Middle, Glenvar Elementary, Hidden Valley, Burlington and Penn Forest. Um and although we're using the same costing structure, I changed how the interest was calculated um to better reflect what the what today's dollars is going to cost, you know, in
0305, 10, 15 years down the road. Um and so you will see that uh the prices down here in this column and some of the dates have moved out a little bit um as we try to true these up. Um the approach that I used was a tiered um approach, uh kind of a phased-in inflation approach. Uh for the first 3 years, we used a 3.5% inflation. The next 3 years, we used a 4% inflation. And then beyond 6 years, we used a 5% inflation on the overall cost. Um and so I just did want you to know that that went up and um I reviewed that with Mr. Kegley's and uh he seemed to be comfortable with the numbers as they stand now. So. I add just a little bit to that after my
031conversation today as well. Um So first off, I hope I'm living to see some of this. Um you know, we keep we used to kid about that. We keep pushing this stuff out and I guess because of the costing, I don't have it to compare with our old one. But I'm assuming we moved a year or two back on several of these projects. So that just means a lot of these projects get moved back on renovation schedules, right? So and I think we need to probably have either a little work session or or in one of our work sessions or um in a meeting, some information and talk about a couple of things. So it um probably not going to bring that up, but um you know, Cheryl, Dr. What Maybe I should have this
032conversation later, too. But I think we need to look at um our CIP and where um where our needs are. Cuz certainly I don't think we can leave Burlington where it's at. Um I think it has got to be addressed. If we wait till 2030 I mean this is what our Board of Supervisors counterparts need to understand. If we wait till 2039, we'll be having classrooms on top of the school. Um I don't you know, I don't know where you're going to put these kids. We're already, correct me if I'm wrong, we're already at max capacity, I would think. What part part of the issue you know, when we redid the CIP in 2019 at the board's request, you know, it's [clears throat] all based on instructional the the placement of Burlington right there where
033it currently stands was based on what we knew at the time. >> Right. And I don't want to put Mr. Kegley's on the spot today, but to your point, I think that that is something that probably needs to be revisited. >> Right. In terms of some of the, you know, structural kinds of things that I know uh he has kind of pointed out. I I I think you're right. I think you're going to have to consider uh you know, change the placement. And and and you're talking about uh 2039. I noticed that's the 100th anniversary of the school. So it's obviously an old building. I mean it's had updates, but >> this is why I don't like them demography, how do you say that? Demographic Mhm. studies because they're just I mean, I can give
034you my opinion in time and I can go ask different companies and I can go ask uh the schools, I can go ask different people what they think is going to happen in 5 or 10 years. We wasted our money in 2017 on that demographic study because you know, we were going to Bonsack was going to start elevating, not not fast, but it was going to start increasing in numbers. We're down to 60% of capacity over at Bonsack now. So you've got Burlington, which I don't remember specifically, but I think we were more elevated, kind of even maybe up just a little bit. >> enrollment last year, you know, from Burlington to Mountain View, right? Yeah. So but now we know that we're bursting at the seams kind of at Burlington and it's a 100-year-old
035school already. So thank you, Paul Mahoney, for your comments capital infrastructure. That's one we can can use it use that uh information you brought. And we know that at Hidden Valley High, it's it's low low numbers. And Hidden Valley Middle is So that may be some some fructitions we can talk about, you know, Cheryl Fachan when she was here, I give her credit. You know, she came up with an idea. I know we're going to have to spend some money no matter what we do. But she suggested get get out of the city and bring that over to Hidden Valley High. And so, you know, maybe those are things that, you know, and let me say this, I'm not putting words in our mouths. I said this before and we were told schools needed to
036close or they were thinking in terms of schools closing. So, you know, these are decisions we I just think we need to have that conversation about CIP at some point. And for good reason for us, too, not just because they're you know, wanting to close some schools, but I think we need to to have that conversation. And then I think maybe we can you know, cuz they're going to have to agree to the funding going forward. So they're going to moan and groan if we take Bonsack out of the rotation because it's at 60% of capacity. But hey, it's one of the ones that need to be talked about. Um I'm not going to ever vote for closing any of these schools. But you know, if we're going to talk about it, we need to
037be rational and and understand you know, they talk about Fort Lewis. I'm sorry, Brian. They they talk about that. You know, uh somebody told me one time when you take the school out of the community, you take the the community uh whole the whole community out. So um Anyway, these are tough decisions, but I think we need to have a a conversation about the CIP to uh see what our priorities are. And I maybe we need to ask Dr. Nicely and and uh Dr. Soltis to do another 2019 study. I I don't know. But um The other thing to keep in mind is this uh plan is built on the current 202020 model, which was commented last week. You know, that might be up for conversation, too. And you know what's funny about that? Let
038me say this. And we had this conversation about me calling people names. I'm going to call people names until we have a joint meeting. Let me just say that. Um you know, let's have a joint meeting and sit down like adults and talk to each other. I appreciate that Tammy to me. I asked King Field to do that over the last four, five, six years. He wouldn't do it. Um she she took the initiative and sat down and and had a conversation with me and I appreciate that. Uh but you know, it's it's time that we get together and know you know, what their thoughts are on cuz they're going to have to fund what we do. We We are the ones that control that, but uh you know, if they want to have some
039input in what what their thoughts are, let us know. Don't don't hide behind you know, political views or worried about getting reelected. Let's just be honest with each other. That's what we owe the Roanoke County citizens. Well, I think the last joint meeting we had, correct me if I'm wrong, was the demographic study that they paid for. Yeah, absolutely. And the gentleman basically said, you can't close any of these schools down. You have nowhere to put them. Yep. We're doing a good job with the with the enrollments. >> I mean I mean a argument could be made from a business perspective that if the schools were made bigger where you could combine say Fort Lewis and Glenvar, but you can't. The building infrastructure is not is not there. And I'd never stand for any of
040my schools to be closed down. Nope. Agree with you, buddy. But their own the study that they paid for, I mean it should have should have ended this argument 2 years ago. I think it was two, three years ago. That should ended that argument. Politics won't allow that, buddy. Nope. So, anyway, we might might But I think we need to have a discussion about this and revisit it and I think Burlington has to be brought to the forefront in some some manner. I'm not trying to put pressure to be the for that to be the first one, but they've got a a exploding population. >> it is one of our I think that's one of our biggest challenges that along with obviously staff pay is the infrastructure. I mean it's You're talking about Clover Elementary,
0411959. You walk in, you can tell. I mean, I'm not saying that it's in terrible shape, but yeah, it's made in 1959. It is serving a purpose. But obviously there's some areas that could definitely use some improvement. Northside Middle, same thing. >> Oh, sure. I mean, you walk in Northside Middle >> need improvements. It's And let let me finish this. I meant to say this and didn't, but we were asking to get inflated up to 17 million 17 million 17 million to do a you know, three to uh 17 17 17 for our CIP. And I'm not going to say which one, but you can figure out which one came up with the idea that we needed to give 20 20 20. We appreciated it. Absolutely and and it'll be used in uh you know,
042it's been used in our planning uh moving forward, but um they're the ones now coming back and saying, "Well, we shouldn't have done that." They were the ones that brought it up. We didn't ask for 20. We asked for 17. And um so, you know, now they're they're going back and saying, "Wait, we got to pull that back." So, um anyway, I'm off that soapbox, but I think we need to have a good discussion where we can we can talk about this. I agree. Yeah. Okay. So, then the last thing we have to talk about is our priority list. And we've got uh three options. I sent them to you late yesterday. I apologize I couldn't get them to you earlier. Um I'll just real briefly say that uh the options are to just adopt
043what I shared at the last meeting. Um so, there's no changes to the priority list from March 11th. That would provide a 3 and 1/2% raise. Um option two is to um fund $696,276 to provide a 4% raise by um taking some hard cuts in other areas on the priority list. And then the third option is to reduce priorities by 1.4 million providing a 4 and 1/2% raise to the to the school divisions and taking an even harder um cut at some of our other priority items that are definitely still needed. Um Dr. Soltys, did you want to I'll have to get to the cuts first. Okay. Um so, on this slide, this is a a difference between option two and what we looked at on the March 11th uh priority list. Um and so,
044it's between option two and the March 11th and then option three and March 11th. Uh so, each one is stand-alone. But they're both compared to the March 11th list. Um I don't know if I explained that very well during the email last night. Um so, to provide a a raise and just the employee raise side was uh 614,140 under option two and 1.2 million under option three and then additional VRS. Um so, uh it's not a savings, it's actually more VRS costs now. Your savings are are um going away. It's 82 uh thousand to cost and 164,000. I mean, so if you add these up in your separate columns, that's the total amount of other priorities that we would need to uh reduce. Uh the first item that was on the list that we added
045back was uh teacher substitute increase um of 200,000 and while um currently during the last March March 13th payroll projection, we're at 75% of our substitute balance. Um and we we don't think that there's a lot of cushion in the substitute balance, but there was 269,000 cushion in the leave payout balance. So, if you recall, we implemented the option for folks to be able to cash out part of their PTO leave and part of their sick leave um once a year. Last year was the first time that we offered that and we did it at the end of the year. So, we were kind of sweating bullets up until we closed the books. So, this year uh Mr. Bradshaw uh changed the policy and the payout occurred in July. So, thank goodness for his insight
046to go ahead and pull that forward so that we now know that we've got a savings in that line. Um we do think that that that savings uh although we want to hold the budget out there, but that would certainly cover any additional need for substitutes um at this time. Uh but I do want to reiterate that the the the fill rates are so high because of um having the advance notice uh due to the the new PTO program that he has put in place. Uh we definitely want to keep our eye on that and that's certainly something we will um follow back up with to add back in. Um the next item on the list and we would take both 200,000 out of both um options on on uh two and three. The next
047item is the payroll lapse. So, this is basically budgeting a negative payroll lapse. We have done this before in the past. I don't like to do this. This is not best budgeting practices for a school division uh because we are in a position where when a student comes to us, we must staff accordingly if they have high needs. Um and so, typically that's where uh these one-offs come from is from our payroll lapse. Um and so, it's it's not my favorite thing to do, but um our payroll lapses have been between 1 million and 3 million in the past 4 years. And so, even in our lowest year, I think uh $300,000 uh reduction to the lapse would not have been too awful painful in any of these years. So, I think that is a
048uh an I don't want to say comfortable, but for being an uncomfortable item, it is a comfortable level for an uncomfortable item. Uh the next item is to um change the HVAC parts price increases. And so, um the we partially funded that on the March 11th uh option two, we used the textbook textbook adoption plan transfer to allow us to fully fund the HVAC parts increase. But then in option three, we just took it all the way. And so, option two would provide 50,000 um to maintenance and option three, they would get nothing. Isn't that something we could pull out of CIP? Certainly. I mean, I think that'd be You can't You can't change the prices and we've got to have HVAC, so I just feel like CMP would be the place to I was
049even going to say take 40,000 out of payroll lapse if Todd needs it. But I know that's another 40,000, but in the scheme of things, I can't imagine. Again, uncomfortable item, but but anyway. Well, at the end of the day, we're going to tighten it up. We know why. And we can't go without HVAC, so yeah. I would Um HVAC is one of the larger items on his CMP. Yeah, that's the only reason I'd hate to take it from CMP to be honest, but unless Todd says it's okay. I I would rather >> Those are essentially already in that, so then through that. items that have large costs come along, we don't take it out of the maintenance budget. We don't take it out of the CIP. And we need that. Susan, would it not
050be okay to And that's the only thing I was going to ask. Well, Brent brought it up, but the only thing I was going to say is could we not make that 36400? I know it's you hate to take any, but I mean, we could. I mean, I again, if you think we don't need that, but I mean, I can't imagine. That's probably our biggest maintenance item, I would imagine. I hate to And it's not the 40,000. I say I know, but but in HVAC parts, and I know this from the personal uh the residential side, HVAC has absolutely exploded in cost. So, I don't know how you do without any of it, but I would I would kind of rather make that 400 on the payroll if if Jamie and Ken are okay with
051that. Wait, in your other option, you you can do that certainly. Your other option would be if I'm if I'm wrong, um leave it that way, but then if he finds that, you know, he's under water in his budget, we can always transfer across categories, too, if we have to. >> Okay. I'm either way I just want him to have it available cuz I know what HVAC's costing me right now. We have to come back and get their approval to do that though, right? Cuz that's cross categories. Um well, if we I mean, it may not be cross categories. Okay. Cuz if it's a maintenance already and we're just using if we have positions or lapse in maintenance, it wouldn't change functional category. It depend on where it lapses. You could do it either way.
052Um The next item is the textbook adoption plan. Option two reduces it to 213,964, and then option three takes it out um all the way. This is not the only transfer. This is just an additional transfer. Um we were made aware during this budgeting season. We have had about 2 million set aside for the English adoption um coming up. But we have learned that it's going to be closer to a $3 million cost to adopt because of all the high-quality new VLA literacy act materials that we're going to have to purchase. Um So to cut this, it's kind of low-hanging fruit cuz it's just a transfer to another department that we don't need or fund that we don't need today cuz we're not going to buy these materials in fiscal year 2027. We were just
053putting in half of it this year and then that would build up with another half million next year cuz it would already be in the budget to where we would would more easily be able to fund that increase. Uh but this would definitely be a place where we would want to if we have any one-time money backfill it into the textbook adoption plan so that we can purchase these materials. Um The next item um Mr. Terry went through and took a look at our sixth grade laptops. Um so we're we're just carving down. Um typically we would uh go ahead and enter a new lease and replace all of the sixth grade laptops. We're going to extend the warranties instead. Um and then hold on to the current laptops. And so that will save a
054little bit of money. And then last um he also uh had shared that um each of the Promethean boards it was originally on the plan to replace um a set of them and instead of doing that he had um cost it out what it would be to replace just the um little chip that goes into it, the operating system. And that would take every active board in the division and put it on the same platform. Um so the hope is that it would um just kind of streamline everything and get everyone on the same playing field. Uh but at the end of the day the active boards are still working. They're they're there's nothing wrong with most of them. I don't think there's anything wrong with any of them, but um I can't say that
055totally cuz I haven't been in every classroom in every school. The bottom line is that the panels would still work. >> They're still working. Well, while we're on that topic, I know we had discussed a couple times in regards to laptops and keeping them on a cart instead of every kid having them and taking them home and them getting beat up and that kind of thing. I would imagine that would save us tremendously, but I don't know when would we be able to start something like that. >> we'll need to look at to look into the future especially with the I'm just being honest with you with all the AI that's coming in and you know, the the ways kids are able to use the technology to keep themselves from actually learning. Mhm. Um at
056the end of the day, I think we're that's something that's a long-term conversation about what we can do, but putting them on carts at certain grades, I think my personal >> it'd be a smart thing to do. >> right? I don't know why you know, especially at the elementary level kindergarteners, first graders but there's all kinds of stuff coming out about screen time and the harmful effects it has on um Of course of course they're already on the carts in elementary. >> Right, right, right. Right. >> So they can use them in the middle of the classroom. Yeah, it's something we need to look into. So are you are you good? >> So that's it. So all I'd say is this. Um first of all, I'd like to thank Dr. Nicely for his guidance in
057me developing my first budget and I'm glad I'm getting baptized to a learning how to make adjustments on the fly because of changes from what we were expecting, but I want to thank Susan and all the directors as well for collaborating being willing to look at their budgets as tight as possible. I met with Jeff's group today and you know, I understand that all these things are needed, right? I mean, in a perfect world we'd fund everything that was on the list. Um but we've had to make some difficult decisions like you said in this economy where we're trying to get competitive salary-wise, we're trying to get competitive benefits-wise as far as health insurance rates. We've had to make some really difficult decisions. My personal recommendation is that the board really consider the 4 and
0581/2% raise. Uh I believe that we should prioritize our employees and the salaries they get so that we keep the best. We're good not because of the programs we have or the materials we have. We're good cuz of the people that interact with our kids every day. And to me that should be our number one priority. So for me [clears throat] that's what I would encourage. And then I know there's been lots of comments with forecasting that the board I mean the um the state legislature is going to give us more money and we're going to get more money. Well, I watched Christmas Vacation not too long ago and man thought he was getting the bonus for the pool, but he ended up in the jelly of the month club. >> [laughter] >> And what
059I mean by that is until we actually have the money in hand I think we have to prepare for where we may not get it, right? So for me prioritizing the people first would be the main thing. And then if we do end up getting more money, using some of that one one-time to put back into the textbook fund. Susan and I talked textbook, fleet HVAC and CMP would be the areas we'd want to take that one-time money and put it back in when it comes along. Um that's just my personal opinion. I know it's your guys' decision as to which way you want to go, but I and I've always respected this board because you guys have always tried your best to give the maximum raise possible and that's what we try to do.
060So I'm getting good at this though. How does that feel? I'd add one thing and I and and Dr. White said it well I think one of our previous meetings as far as us being able to ever gain market share against our neighbors with our salary. I mean, it's really going to take something more substantial to that over a short period of time to make headway. I do based on what I think I'm hearing. I think 4 and 1/2 will be uh you know, a little above what probably most of our neighbors are able to do this year. So I think that will help us to gain a little bit of ground. Thank you. And hopefully absorb some of the what 23% insurance increases for some of well, the majority of our employees. But the
061good news is I think we're only passing 10% of that on to the employees. Well, that's good. Uh yes, I want to echo the same thing. I take your recommendation and I'll certainly uh agree with it and thank you and Susan and and staff and everybody in here that was a part of this. Uh you know, we've had challenging times and uh but you know, and and through our conversations today, you know, we're going to have more challenge. It's going to get more challenging. They're you know, the one thing I'll say is that on the board supervisor supervisor side there've been no tight no belt tightening, right? We've lived within that revenue for 20-some years, 22 years we've lived under that revenue sharing agreement. They they've lowered it a time or two, right? We went
062from 44 In my time we went from 44% to 41%. Now we're going to 39% once they take that 3 million. And we always live within it. There's been no belt tightening on the other side. So I want to know where our people are that that say we need to live within our means, that you know how to spend your money more than they do. We get 41% Now it's 39% every dollar that that comes in as revenue. Um just just remember, the schools are tight. Are we tightening on the other side? I haven't seen any. And so when we hear about the insurance is going up for us, but they're still able to keep it down, that's because they take that 3 million from us. They take the excess of uh revenue that we
063have at the end of the year, they keep that and they raise uh revenue every year. Right now I it's I think it's another 10 or 12 million dollars this year. They're still going up. You know, the schools have went up a little bit, but we didn't go up proportionally. And so um you know, we've always lived within that revenue sharing agreement. And uh and it's always been a good tool. And but let me say this, the last thing I told Tammy this afternoon or this morning when we met was and she neither confirmed or denied, but I think you can listen to her comments from what I've heard Tuesday. You can also see that letter that was sent over to us from Mr. Kaywood that this is the beginning of them needing more money
064for what they do. Right? S- In my mind, schools are getting devalued. You know, and I went I you know, told meeting with Tammy I appreciated it, but I'm not going to change my my posture or my stance. Um and so uh we have to realize that you know, it would be nice to see them having to tighten their belt. And those those monies that they said they had to spend for us I think we can rebut every one of them. SROs, they get a grant from the state. They weren't in favor of giving us SROs until they got the grant from the state and then they were all about the SROs, right? Same thing on some of those other issues, but but I told her going out I said you ought to get all
065the money you can get in the next couple years. You know, Dr. White is all due respect is new and he's getting his feet under him and and doing a great job. Davis going to do what whatever they say. Uh Shelly is you know, chair and and Brent is is tied in with the sheriff's office and it's tough you know, being the only voice right now. And so they you know, I'm the only one pushing back and people are tired of hearing my my voice. So we need to if we're going to tighten on this side, we ought to tightening on the other side. We've grown 100 employees over the last decade and I probably 80 or 100 million over the last decade in size of Granite County uh revenue. So, just uh you know,
066we'll do our part. We'll we'll help and and we'll tighten and and our teachers uh God love them. They are amazing and uh you know, we want to give you 20% raise and uh you know, but this is the best we can do and and it'll help offset the the insurance piece. Um but hopefully we get a little more from the state. Um you know, that was told to me we're getting more from the state so they're taking it from us. Um don't understand it. Uh would have a totally different philosophy uh if I were over there, but uh you know, you need to play within your means and I think we've done that well. We've been a very good partner. And look at the product we're turning out. 10th out of 130. I got
067that right, Dr. Nice. Yes. >> [laughter] >> Well, one one thing I'd like to add, you know, it's been brought up several [clears throat] times too that well, you have a lot less students than you had 10 years ago, right? You had 1,000 less. I think we were at 14,000 maybe 10 years ago, correct me if I'm wrong. Yes, however, if you I guarantee if you look at the amount of problems, [snorts] whether it be behavioral problems or special needs, I believe if we were to run the numbers, that is way above what it was 10 years ago. Um you look at some of the things that come out of legislature that causes us to have to hire more people, right? So, some of the stuff we can't control when it comes to growth like
068that, but I do feel like if if you don't understand education and you don't understand exactly what we're doing and why, then it would be easy to look and say, well, you have 1,000 less students. Why in the world do you still need the same percentage of revenue, right? Well, we still have the same amount of buildings. The infrastructure is what it is unless we want to spend, you know, $80 million to build a gigantic elementary school that can house two or three of them, right? We're not going to do that. But also, look at the CSA funding. That's an easy way to look at it, right? If you look at CSA, look at the amount that that is cost it over years and how much more it's increased, that kind of answers the question.
069The responsibilities are greater today than they were 10 10 years ago, right? We may have less students, but we have just as much responsibility, probably more than we had before. So, that that kind of because I know that argument comes up a lot. Well, you you have less you have less students. Well, it doesn't mean we have less responsibilities and to be honest, we all know what's going on in society and that bleeds over into the schools. It does. And I'm not throwing off on anybody. I'm just saying that we have more behavioral problems. I mean, we have a lot of expulsion hearings. [snorts] We have a lot of um special needs, right? Kids with special needs and stuff and we have to make sure that they are given an equal opportunity as well and
070that requires more employees and more expense. So, just to clear that up, I think that's always a question that comes up and if and if you don't understand education, you really don't understand all of that. And and so, one last point to my conversation today was she invited me over to set with I don't know who your counterpart is on that side now, but to set with them and and hear you know, the cuz I mean, I they need it needs to be articulated from somebody. So, wants me to come over and sit down with whoever it is and go over that five or 10 million dollars that they said they're spending on the schools and I told him, you you're not going to like this, Susan. I told him, I'm only coming if I
071can bring Susan. Cuz I said I can I mean, I I know the the background of all this stuff. You know, I'm I'm that guy that's knows a little bit about some of it and doesn't know anything about all of it. So, I need Susan or somebody, but Um I'll come to protect >> Yeah, let's I'd love for y'all to come and let's you know, now in all honesty, they should have called me before they they got to this point and maybe we could have hashed this out and wouldn't have been so boisterous, but I think once my counterpart understands that some of these numbers are are bogus and you know, even some of the stuff Mr. Kay would send over here, you know, it's uh disingenuous on on a few of the numbers and
072and maybe all of them. But uh so, I may ask you if you don't mind to go over and we'll sit down. I don't have any problem sitting down. It's no use doing it after the fact, but I'm willing to sit down with anybody and talk. But I'm good with that. So, I say we move forward with the 4 and 1/2% and move on. I agree with 4 and 1/2. So, these are decisions that we can come up with now, but we're we have to vote on this next. Yeah. Awesome. And you know, thank you for kind of reiterating some of the things I was pointing out. You took the words out of my mouth so I don't have to say much, but I I also wanted to uh I'm just highlight that, you know,
073going forward stepping beyond the the feelings that come up with fighting about how much money we're getting or not getting, um we'll continue to do what we're doing now, which is to be uh good stewards of the money we have and uh looking for creative ways to uh make the money work for our people and I I appreciate uh Dr. Sultis and and Susan and everybody for working so hard on these numbers and we'll continue to push the the needle upward and and close that that pay gap that exists from the state average to where we're at now and um I faith that we'll keep working on that. I appreciate it. Thank you. I think we should annually look at all the inputs we put in, where we're putting our money and making sure that
074we're getting the outcomes we want from them. Yeah, I think that's important. Yeah, thank you. Um I know I mentioned to Dr. Wyatt, I think it was the last of the last meeting, I think this is the most difficult budget season we've had. So, Susan and Jamie, thank you for for your efforts there. Well, I think option two might be the the most fiscally responsible, I can get behind option three provided that if that $3.7 million difference, if we end up with the the house budget instead of the Senate budget, which is is what I'm hearing is probably going to come out of Richmond that we make sure two consecutive years of not not doing the fleet replacement is almost $5 million that we've cut from that. And that's concerning. And one of the things
075to make sure that we're we don't need to put our employees right at the top, but we need to make sure that we're looking after our students as well and their safety. So, anything that we've cut from from this list, I think we want to make sure if we do get that $3.7 million additional from the state that that it goes into things that were cut and not an additional raise for employees. No, I think our our recommendation would be textbook, fleet, H-back, CMP. The things that we cut the bones to put back in. Yeah, but other than that, no, I think I know it was difficult, much more difficult than we've had in past years, but I think you guys did a nice job. And I don't want to discount Dr. Nice's contribution. He
076was a wonderful advisor. Thank you. Yeah, I would just reiterate that. Thank you for all the work you put in and thank you for bringing us several options that we could take a look at. Um I think it is probably best for us to go ahead and secure the 4.5 with the funds that we know we have, which is what you were saying. And then come back um if we do get additional funds and try to take care of some of those other things. I think that's probably our best best option at this point. I have one clarifying question. Uh Mr. Greenway wanted the 40,000 covered by the payroll lapse so that we could fully fund H-back. Do you want me to do that or do you want to let the payroll lapse fund it
077if we need it? >> I would like to do it. And then if we need to re-appropriate, we can always do that. That way, but I think that's much cleaner. So, you're saying the alternative is that we could move funds later if we need them. Is that what you were saying? Yeah, and we've done that this year is um we've used payroll lapse to cover other um Actually, we've used trying to see. Dr. Mr. Kay was over there. He's hidden behind a screen, but we've used the payroll lapse to cover um contracting out H-back positions when we haven't been able to hire one. And that's not a category that you have to go across town for. If it stays within maintenance, it will be fine, but um if we move it outside and we and
078overall, they don't they only care about the total number and so, it'll be if that our total spend goes over and above. So, and that's what I'll have to do tonight is actually run everything through our >> [clears throat and cough] >> accounting system, the raise and everything. Uh line item detail so that I can provide those um categories to you tomorrow. Yeah, thank you. And and can I finally give them some options on getting uh ambulances and fire engines? Let's let's close the Green Ridge Center. That's about a half million a year. Am I not supposed to say that, Ed? That's about a half million a year and and maybe the library that's less used at 11 million uh this year and maybe we could put some people over at Woodhaven and get some
079economic development. That'll help us pay for those quickly. So, thank you. Thank you for all the work y'all done. Yeah, thank you, Susan. Thank you. Anything else? So, Ms. Peterson, just to clarify, so they're um taking action tomorrow, would this be um one action item or like the CIP and so forth, those separate items. I have them separate. Okay. Uh Mr. Bradshaw will have the uh pay plan ready. It actually already is ready. So I was waiting on those numbers that you told me today, so I'll have it ready tomorrow. Then we'll have the insurance, we'll have the CIP and The The The The question becomes, I mean, do you want to do it on consent or do you want to do it as action so you can Yeah, unless you have further discussion or
080comments you want to make. We should make comments anyway, but Y'all don't want me to discuss this. >> [laughter] >> You got to go, man. It's 4:30. No, I don't got to go. I I guess we can I mean, we're all It sounds like we're all on the same page, so it It could go on consent. I think it just depends on if people want to be able to make comments or not. Or we could make those comments in your final comments at the end. Or we could tell Timmy he can't speak at all. Whatever we want to do. Does it make any difference having it as a consent versus action if we want to make sure that anybody comes out tomorrow has a chance to speak specifically on it. I I don't know if
081that makes a big That's an excellent point. It is a huge point. >> And also, are you still presenting it if it's [clears throat] on consent cuz generally we don't, right? If it's on consent, I would not present it. >> So So maybe we should have it on action and that way you can present some information. That way we're completely transparent and like you said, if someone wants to speak, that way we've covered Yeah, transparency. That's a great idea. I think we can explain it more clearly. Hopefully they'll be happy and their 4 and 1/2% raise is pretty good. Yeah, I think it just gives her an opportunity to actually make a presentation about it and hit the highlights on it and then Yeah, cuz not a lot of people watch the work sessions, so
082you're right. So at least Yeah, and then I don't know. I think I think it could go either way, but action's probably better, I think. Can we go away from filming this? What's that? Yeah, we might as well stop filming. Are we Are we good here? Transparency. That's okay. Oh, I did have one more slide. I apologize. Um And this is important. Uh The Board of Supervisors, originally I had on here that we would give present the budget uh at their second meeting in April, uh but staff has asked us to come over uh next week. Um and so we will present our budget that you adopt tomorrow uh next week with the Board of Supervisors. And then I think everyone's well aware of the special session and when the General Assembly's planning on the
083vote. Um and then the last two days didn't change. But I I wanted to either have the next week's Thank you. date on there. All right. Meeting [clears throat] adjourned.