001Good evening, community, staff, and stakeholders. Today is Monday, June 15th. The time is currently 5:30 p.m., and I would like to call this public hearing to order. Before we begin our budget presentation, I would like to call the roll call. District one, Miss Jasmine Bose, don't see her yet. District two, Mr. Dear Christmas. Don't see him yet. District three, Dr. Jesse Gury. >> President. >> District four, Miss Victoria Williams. >> District five, Dr. G. Hay, >> present. >> District six, Miss Mary Baker. >> Present. >> District seven, Miss Sabrina Hill. >> Present. >> District 8, Miss Joy Toes Cooper. >> Present. and district 9, which is myself, Ben Stra. Miss Bile, did you get everything? >> Got it. >> Good deal. Before we get started, I'll read the ethics statement and then I will hand
002the platform over to you, Miss Divons. The ethics statement. In accordance to policy, in accordance to board policy, it is the duty of every board member to avoid both conflicts of interest and the appearance of such conflicts. Does any board member have any known conflict of interest or appearance of such conflict with respect to any of the matters scheduled to come before the board at this meeting or appearing on the proposed agenda? If so, please identify the conflict or appearance of conflict and refrain from participation in the matter if involved. With that said, I now pass the podium over to Miss. >> Thank you, Mr. Chair. >> Yes, >> I did. I love >> Good evening, Mr. Chairman, vice chair, members of the board, superintendent, Dr. Hendris, colleagues, and community. This evening I'll be um
003we'll be holding the last of two required public hearings on the proposed FY27 budget. So as um when we started down this uh process, we wanted to make sure um that we had address all the competing pressures that we have. The only things that went into the 2027 budget, we had enrollment declines um where we had reduced student enrollment and um in the past we had not done leveling. Um so that was one of the challenges that we had. We had rising mandatory employee contributions for benefit costs for state health and TRS. Of course, the inflationary pressures that everyone is experiencing right now. rising cost for our operations and utilities and supplies and materials that are used in the classroom. Um federal uncertainty due to the instability at the federal level. You recall last year
004they withheld our money even though they said they have um will be releasing our funds this year. A lot of us when I say us my colleagues we're still a little antsy about it and a little nervous until we see it. We you know we have that to deal with as well. And then property taxes due to the recent state legislation that everyone knows that um will cap the assessed values at um 3% or the rate of inflation that would limit the district's ability to um generate any additional tax revenue that may be needed to offset some of these increase in costs. So um we've identified about $9.7 million in cost reductions. um staff to work diligently with every department to look at everybody's um budgets and look at what is it that we can
005live without going to this next fiscal year to help mitigate some of the inflationary pressures enrollment declines which will lead to decrease in some PPE revenue possibly um benefit cost rising or those increased cost how can we mitigate that so we've identified um through realignment systemic realignment about $4.5 million in vacant pos in vacancies that we were able to get a savings from that. Um administrative supplements, we found about $3 million that we can reduce there an additional $1.2 million from our contracted services where we are paying people to do jobs that we don't have staffing to do. For instance, psychologist where we have staffing shortages. Um we have an interal shortage of teachers. We use them for some of our teachers, but we didn't cut any of those areas. But those are the types
006of services um that we that falls under contracted services. And then just an additional um another million dollar we found in um where we could attain operating efficiency just across the board. We produce travel and some other areas as well. So we identified again $9.7 million to um help offset some of the increase that we had in bridging the revenue gap. Um at 2026 we had 728.8, we're projecting 750.6. We had a um $3.9 million increase in property taxes, uh decrease in other local sources, about a little over a million. We had a $35.6 million increase in state revenue. Um and then a $16.1 million in state grants that we won't receive next year. So we had a net increase of $21.8 $8 million in the state funding. So that's how we got to the
007750.6 an increase in revenues. So our total budget that we're proposing is 1.287 billion. Now this is a slight change from the first public hearing. I believe I sent you all something in the um email on Wednesday evening telling you um some changes that we had made, but we were still have a balanced budget and I'll address those in a few minutes. But on the general fund, most of those were the general fund. So, we went from 750.6 million to 750.5 million. In those adjustments that we made, we found um what we decreased 5.5.6 million related to state health insurance. And it was result of the state's final premium increase being lower than originally anticipated during the budget development process. And then we had an additional $1.2 million in um other bank positions because we're
008still combing looking through seeing where we can find additional savings. So on the general fund side that's about $6.8 million that we um were able to decrease expenditures. However, um we offset those decreases with the necessary um additions. So we had an adjustment for charter school funding totally due to the increase with the PPE that we received the C that's using our calculation to determine the per people expenditure that they receive. So we recalculated that. So I think that was a little about $1.2 million. achievement. Yep. It's 1.3 million $1.3 million. Um we had about two we added $2.7 million for textbooks consumables. Um those are the workbooks that the students use every year. So um we're not able to pay for that out of spouse like we are with our other textbooks for this
009year. We added the allocation for tapy. Remember at the time when we did the tenative adoption we have have their anticipated enrollment projection so we do have that 2,260,000 we are adding two positions um an admin assistant at Rosen and then an executive director for the atlink and then she added an additional 125,000 for communities and school to provide and Dr. Smith Dr. Hendris I'm sorry I talked to Dr. Smith earlier just before I came in here. Um, correct me if I'm wrong, but that is to allow for two additional wrong um rotating schools. So, we had an additional $125,000 for that. So, there was a net expenditure adjustment of $77,570. However, on the revenue side, we did adjust the QBE revenue in the system by that same amount to match what the QB actual
010revenue was, which is what we that was correct what we communicated. um the previous meeting. So those are the adjustments that were made and they are reflected here for the general fund um on the I talk about the in the past money because there was some red deductions there as well. Capital project funds remains the same of $479.2 million which is 35% of the total budget. Debt service is 5% at 66.9 million. enterprise fund um reduced by about a million or 51 to 50 million and that is due to the decrease in the health insurance and some positions at school nutrition that were banking that we um for that we closed because they said they could do without them but they've been banking for a while. So that was the only other change um in
011the two funds general fund and enterprise fund and the special revenue funds remain the same and that's about 3%. So um again $750.5 million is the general fund that we'll focus on for the remainder of the presentation. Um we talked about the baseline total the revenue again for general fund is 750.5. the we reduce by 9.7 and so we have a balanced operating budget that fully protects facing program student facing programs and generates $4.9 million for staff compensation and that's in the form of a midyear step increase for those employees that are eligible for step. So that will occur on January 1 of 2027. And for those that are at the top of the pay grades on step 16, they're not eligible for a step. So those employees will receive a 1.5% increase as well
012as those employees that are on a fixed um salary rate. So this is how our money is being spent. We have 85 cents of $80 going to our people. We're spending 85% of um the $750.5 million is in the form of personnel services which is salaries for all of our full-time part-time employees and employee benefits. The remainder of it is for purchase prof professional services about 3% 3% for utilities and then 6% for other operations and 2% for supplies and materials. on the as far as the how it's spent functionwise 70.7% or $7 out of every $10 is going directly to student bas and instructional function whether it's instruction people services improvement of instructional services educational media or instruction and staff training school operations council 15.7% that's where we have maintenance and operations student transportation
013and school safety and security and then the add and support is 14.5% That's where we have our school administration, support central services, general ad and business services and other support services. This budget does, as I stated earlier, include investment in our employees of the $49 million in on the date here. As we stated earlier, as far as our fund balance is concerned, we are not using any fund balance. We projected the ended fund balance for this year which will be our gated fund balance for next year of $130.4 million um for the next year. You can see my forecast is um the revenue is based on a 3% increase to property taxes and a 1% increase on the state revenues. On the expenditure side, we are assuming a 1% increase to salaries, 2% increase to
014benefits, and then a 3% inflationary cost to all other supplies. So over the next few years, you would see that we would have to use $5.2 million if these assumptions were to remain or if it actually occurred, we would use $5.2 $2 million next fiscal year 28 29 4.3 3.3 and 30 and 2.1 and 31. So, our fund balance will go down to $115.3 million under these assumptions and that would be 14% of our operating business. And that's all I have. Again, as I stated, this is the second of the um two required public hearings. Following this meeting or at six o'clock, we have a call meeting to adopt the final budget and adopt the temper rate. And then the remaining days will be the whole public hearing on the mill rate. And so be
015probably in August. I spoke with our tax commissioner over the weekend. Um we were together and she said we're going to have a late digestive meeting. Yeah. So probably late August or mid to late August when we adopt the that's all I have. I'll be happy to entertain questions on field to the floor back to you Mr. Chair for public comments. >> Go ahead. >> On the expenditure you got school 125,000 is that being added to or is that just >> that is being added. These are these are the additions to what we discussed at the um that we discussed previously. >> Yes, that's correct. >> Yes, ma'am. >> And then at the Rosen Law School, >> there's a person >> the admin assistant. It's administrative assistant >> to be there to manage the building.
016that person's in that position when we already have that >> the administrative assistant position >> that's salaries and benefits and that's not just um when we give them out we include salaries and benefits the total cost of employment not just what the base salary is saying over there somebody wanted to see it like what >> they'll be managing the building it's a part of our engagement team the building's open during work hours someone has to be there >> it a member of the community was a member of the community who was working out of there >> and so we have corrected that to make sure that it's a person who actually works in staff. So what you see and I don't know what the percentage of the benefits this time for assistance. >> I didn't
017know it was open daily. So it's open daily. >> Open day. >> She didn't know it's open daily. >> People want to come see it on some field trip. I don't know. We had it open every single day for people to >> So they'll be doing things out of there. It's a community front facing building. >> Who who is who is that person reporting to >> under Miss Okay. >> Okay. And then for the bonuses the mid year, if they don't get a step, then they get the 1.5. >> So that bonus is an actual salary increase, Mr. Ma'am. So if they're not eligible for a step, they will get the 1.5% increase >> For everybody what um all four this all four time employees. >> All four time. Yes. For all four time employees.
018>> Okay. So let me ask on that then if that is the case the teacher pay scales changing. So when you say the teacher pay scale >> if you're saying that you're saying that certain employees maybe we can go back to the slide that you have classified people different people on different pay scales. The teacher pay scale comes from the state. >> From the state, right? >> They do come the the a base salary comes from the state, not our our teacher pay scale is not comparable to the state. It's more. >> Well, that's because of local funds that go >> exactly. So therefore, if you're adding a an increase, >> then that would mean that the pay scales would change. >> So we're not adding an increase to the pay scales. they're getting a
019step on that pay scale. So if they're on step five, they'll go to step six and they will get the difference in the pay and that's usually between two to 3% I believe and two 3% increase between steps depending on where they are. So if if my salary was let's let's say my salary right now I started out at 57,000 and then I'm going to get an increase in January then my scale then the scale would have to change >> not but no ma'am the scale is not changing where you are on the scale is changing so if you're if you're 57,000 is at step three then you'll go to step four and you'll get a two 3% depending on um I don't know what the spread is on that particular grade. >> I think
020I think you need to go look at the pay scales because if you're at certain pay scales, the first three steps you don't move as a teacher. The fourth at the fourth year, you move up. And so therefore, if you're if you're going to your step from uh to year five may be different. I think you need to look at your pay scales. >> Yes. um with the projections um do we have the calculations for the pay increases? So we already know who's eligible for STEP and we already know who would get the 1% as u Miss Marud given an example. So if you're a firsttime teacher and it's within the first three years you wouldn't be eligible for a step but you would be eligible for the 1.5%. Is that how >> No. Do
021we move our people from the from that first step to the they get experience they get credit for three years, right? Don't we move them up on the step as well with pay, not just for experience, >> right? So if you're a first year teacher last year, Georgia, so then you automatically go to step three the next year. >> But your pay scale is the same for the first three years. You all must not looked at your pay scale. It's the same for three years. You don't you don't Your salary doesn't change until the fourth year. >> 145. >> No, that's >> So that's what I'm saying. >> I see what you're saying now. >> Yeah. So you're not So we're not they're not getting anything. Okay. >> And we need to be transparent. >>
022But I thought they were getting the one they would be eligible for the 1.5%. >> No, because that would change the whole pay scale. That would change that pay grade that >> Yeah, that would change that pay grade for that um for that year. cuz I just I thought that and I could be wrong but I thought >> you get that we get that information. >> She's looking it up for you right now. >> Okay. Yes, ma'am. >> She's looking at that now. >> One more question. >> They said there. Yes, ma was in the uh I don't know which one, but yes, ma'am. >> Already included. >> Yes, sir. And and I'm sorry just for clarification on my question that what we're stating midyear we will be given the increases once we clarify how
023and what that looks like is that also shown in our projections because when we give an increase we have to sustain it. So is that shown in that fiveyear projection? >> Yes ma'am it is. Yes. Because the percentage is is added to what we have in the budget. >> Okay. >> I have a question. You stated that um the realignment of vacancies, you mentioned that in this slide. I'm sorry. >> Realignment of vacancies. >> Yes. >> Okay. If you're realigning the vacancies, what about the 500 plus current vacancies? How does the budget offset that? Because if we're going to realign and we, you know, Dr. um Hendricks has already did all that and all that, we still have vacancies out there. So, how do we mitigate that? Trying to get people in. Is that accounted
024for in the budget as well for those vacancies? Because I know I'm looking at the special education department. That's a high rate of vacancies there. So, have we taken account of those vacancies based on the realignment of vacancies that you all have worked at? Yes, ma'am. So, we did not delete, we didn't eliminate all the vacancies. It was just those vacancies that the departments knew that they could do without. So, those other vacancies are still in the budget. We did not take those out because we need to have those funds for when those positions are filled >> and we move on. Okay. Okay. So, um, Miss Barber just told me the pay scale, so I'm right. So, when they start out, they're on that first step. They're at 57,89. We moved them to step three
025after their first year and that pay is 58,419 for a T4 bachelor's degree. So they would get an increase cuz they're going to go from one E one or two to three. >> Look over look over your the pay scale is the same for three years >> but we move them after their first year. We move them to step three. We don't make them stay. We don't they don't go from E to one one to two. They go to step three. >> So everybody would get to a four. >> Yeah, that's true. >> But that's how our practice is. Our pay scale shows E um 57 809 one and two. Those first three are A57 809. But once they complete that either one, they automatically go to three their second year here with us. We
026don't take them to two. Yes, sir. >> So, if they're if they're moving from one to three, >> yes, >> that's automatic no matter what, right? >> That is correct. 57,000 will get on >> and then we give everybody a step. Will they move to four? >> Whoever's on three will move to four. Whoever's on one now, we move to three. >> Three. Okay. >> Yeah. >> So, the following year >> they we give a step the following year they will go to four. And they don't go to four anyway for at least for experience. If we give a an increase for pay they their pay will go from 58419 to 59078. >> Any more questions? >> Yeah, going back to my question. So you were saying that it the money did not come out
027when I asked about the vacancy. So you saying that funding did not come out is already >> it is embedded in here. Yes, ma'am. We budget we budget for vacant positions that we are going to keep for the next year. We only eliminated those that we're not going to keep. That's what's included in the savings for the rec for the position realignment. >> Okay. And then you mentioned something about expiring general fund grants that we won't be receiving. Can you elaborate on that? >> Yes. That um if you recall, we received money from the state for EV buses. We won't be receiving that next year. >> Oh, we won't be buying any. >> No, I don't think we will be either. >> I mean, that's not the plan. >> That's not the plan that I'm
028aware of. >> Okay. So, I have to ask Miss Hall to confirm. I know we still have a little um federal money that we have to spend. So, once that's gone, I don't think the plan is to buy anymore. >> So, it's a wash. >> We are the positions we y'all eliminated. Y'all talk to the department heads or that something y'all decided on go to the department and see if that's what they do. >> This department remember each individual department includes my own. >> We always to >> we did not take any student off of uh we only dealt with positions that were outside as much as possible and we'll continue that as we go through the year to look remember in 2017 we had about 55 56,000 students did not start eliminating employees although
029your students started dwindling until Dr. Smith came in. So, we continue to look to make sure we're official. We won't take anything away that will take us out of being official for our children. >> So, I guess I'll make this. So, adear you're going to make these adjustments to give an increase. >> What if now what are we basing our population off of right now? our student population. >> So, and Miss M commitment off. Initially, it was on the NTE, but um we went back and that's where we got some additional savings by leveling because we used to do leveling in the fall at the school starts. But we went through that process now based on our actual enrollment. So, our staffing right now is based on our anticipated actual enrollment. >> I'm asking you,
030what do you think your enrollment will be? for students and not >> 50,000 students. >> Okay. So, if you think that's the enrollment and it doesn't happen and you're going to have this increase and then you're going to end up having to make another midyear adjustment probably based on FTE or I mean whatevers. So, uh what happen? So you're saying if we don't if we if if the enrollment is less than 50,000 that impact our insurance budget. The state has a thing called home harmlessness. When they do the FTE count if it's less than what we anticipated then they don't cut our money for this year but it will be reflected for next year because the way the QBE formula works is your fall count times two plus your spring count. >> Yeah. That's that's
031that would be my concern. >> Yes. So it wouldn't be this year but it would impact us the following year. I think our for some I just think our numbers are going to be less and I think that we really need to start working on uh you know looking at our schools and population especially on my campus. >> So that's okay. >> Um I just I noticed that you stated that um RQBE for Tapestry. >> So you got the enrollment projected enrollment for Tapestry. >> Yes ma'am. >> Okay. Okay. I don't remember the number. Do >> you remember that number? >> 200, but don't quote. We'll get you the information. >> Okay. Okay. And that equated to 2.2 >> 2 almost 2.3 million. >> Yes. Yes. I think it's about 2.6 or 2.7 million. >>
032Okay. Will that include the um kindergarters that's coming in at the new >> the early learning center? Some of the kindergarters? Yes, ma'am. But um some of it does not. We just had money in the budget for the early learning center because we have prek there and the state doesn't fund all of our preks. >> So, we did have to put some general fund money in there. Do you remember the number of positions? >> Positions that was for prek, kindergarten, instructional coaches, >> 42 positions, >> art teachers, everything. How many students are we anticipating for that >> in kindergarten? So, I'm just asking for maybe 300. >> I'll get you that 300. Any other questions? Seeing none, we'll move to the public comment. Is there anybody that was listed for public comment? >> Think so.
033>> Anybody interested in public comment? >> Seeing none, we will move into voting for that that um I I need a motion for the tenative budget. So, um, >> so I think we have to wait and do because we have a special call meeting. That's it. >> One minute. >> Give me one minute. >> Gotcha. >> Okay. All right. Any other questions? >> Seeing none, we'll adjourn the public hearing. The time currently is 5:59. 5:59 p.m. This meeting is adjourned.