Walker County Called Budget Meeting June 2, 2026

001We'll we'll call our meeting to order and uh we don't have an agenda but we are going to pray. >> Mr. Willson, >> some of some of us need including me right now. Oh, thank you today for what you've given us in Christ Jesus. And um Father, sometimes when there's a little bit of turmoil, we have tends to get upset. We ask that you forgive us. Lord, we've got uh business we need to take care of tonight. We need your wisdom. We need your understanding. We need your help. We need your strength. And so, Father, we ask you for that. uh pray for each person that is represented here tonight that you might uh bless not only individually but bless their families as well because we together inclusively we make up a family in Walker

002County and we together work together for what is the best interest of not only the kids but the teachers and the people as well because um we represent this part of Georgia and father we need you tonight to ask you for your help and your strength. In the name of our Lord and Savior Jesus Christ, we pray. Amen. >> Amen. >> Okay. So, I guess we just turn it over to Rachel. >> We We can We can turn it over. And I think the goal for all of us, I know Rachel and Angela have been working extensively on not just budget, but just everything financial. Um and um so I I just wanted to kind of go over what you have in front of you. Um you guys were sent the large packet. Um and

003that's the thing we'll we'll key on tonight. And then you also have a two-pager that's just going to answer some questions and we'll go through that with you. And then the last one is just a budget and actual expenditure comparison and it goes back several years. So, and that that's important because that'll that it'll be something we'll discuss as we get into the the points of our budget. So, I guess for me tonight, what I would like to do is obviously answer any of the questions that you guys have. So, just to remind you of kind of where we are in the timeline. So, we'll meet tonight and you'll have the remainder of this week to re continue to review, ask questions, reach out to us. Tuesday night, you will have on the agenda a

004tenative budget. Okay? We'll continue to have that discussion. So, don't think that, you know, once we finish tonight, we're hoping to be at a point a better point, but there's still room for discussion. Okay? Even up until Monday's board meeting in two weeks when you actually vote on passing that tenative budget that becomes our budget for FY 27. So there's a lot going on in that though we're required by law to advertise and so we the advertisement is running it'll run tomorrow and with that advertisement we have to post on our website a tenative budget and so what we'll do is based on our conversation tonight if this changes at all we'll post that one pager for the public to see and what it'll say basically is we will have two open to the public

005meetings one prior to our planning session. So, at 5:00 next Tuesday here, we'll have a budget session and we'll go over the budget uh with you guys and anyone who's in attendance. And then fast forward to Monday night, which will be that board meeting night time. We'll also do that again on that Monday night. Now, I know Dr. Will and Mr. Davidson will actually be out of town for Tuesday night to meet because they'll be at GSBA. So, I'm hoping that we'll get as many questions answered for you guys tonight. But again, you you'll be riding down with Mr. Davidson. You guys will be down there. You you may end up having more questions. If you do, then we'll just let us know. We'll be happy to answer those as well. Then we'll have our

006second required meeting on Monday night before the board meeting and then you guys will actually vote on the tenative agenda on Monday night. And keep in mind, the reason we do it in June now is because we don't have to pass the resolution to expend funds. So, if you don't have a budget in place going into July, you have to have a resolution to expend tax dollars that you haven't received yet so that you can make payroll in July. We pass it in June and it starts in July. It's just it's but that's normal, right? The other thing is we've been getting the tax digest later and later. So, it's been coming later in July up into August sometimes. Well, then we're getting into millage hearings. So we try to get the budget done so

007that when we do get the digest and we start talking with you guys about the millage rate, you're finished with your budget, you kind of know what that needs to look like and it helps you in the decision on the millage rate. Does that make sense? So that's kind of what that process looks like for us. So I know we've had a couple of meetings where we've had good discussion. Hopefully this will be a continuation of that. So stop us at any time, ask questions. Um, we want to make sure that you have a good comfortable feeling especially tonight when we finish because we do need to post something with that advertisement tomorrow. So, >> okay. Um, starting off, Miss Ella knows that I'm I'm pretty well in that when it comes to budget, but

008I have been trying I printed this off this morning. I went over as much as I can. I hope we're not being premature here. The budget is one thing. Expenditures are another. And I know we're probably going to get two all of that. And that's the only question I've got right now. I can see the original 26, the proposed 27, the difference in those two, and that's fine. That's well and good. Uh, but this doesn't this doesn't tell me a whole lot uh until I start seeing what these uh uh what the budget actually uh is going to use. So, so what we'll try to do is just to kind of give you an idea is your front page is just a summary of everything that's behind this. And what I did was, and I

009don't know why we didn't do this years ago, but we numbered the pages because I used to tell you, you know, turn to page five and they were all blank. It's like, okay, let me figure out. So, anyway, >> thank you for >> we came to an epiphany there. It's like, why not put page numbers on it? So, the first page is going to give you just overview. The second page is just going to show you the projected revenue that's going to be coming in for the year. Okay. The third page is talking about the projected expenditures in every function code, every one of them. And then what you've got, Dr. Wilson, if you look on that page three where it says salaries and benefits and that first one is 10,000 instruction. Okay? Then your

010page four is actually the breakdown of fund 10,000. Does that make sense? So the the the expenditure summary will give you kind of a holistic view and then the back documentation breaks it down by function code. And we we've got one we've picked out that we're going to go over because it's got the most significant changes this year. We want to explain that to you. Then I'm hoping that that will drive your review of all of those function codes. And if you have questions, we can answer those. Does that make sense? Well, I think one thing though, I mean, you know, a budget, it's a management tool. I want to know what the actual expenditures were. There's budget and then there's the real numbers, but I want to see real numbers and I granted school,

011you know, year's not over, you know, but we should have some kind of real numbers to look at. >> The one page that we have, >> but has the actual It's >> but it's pretty it's pretty summarized. It's I mean >> summarized by function >> extremely summarized. I would like to see >> the like by the by the by the services an actual number with those and we usually give that which actually I think right now you probably only have through March. every board meeting that we have when I give those financials the last it's like 16 pages long I know so the top page is always the summary letter then you've got your profit and loss statement the second page and then there's the balance sheet and then there's a balance sheet for squats

012expenditures and then >> um the last nine to 10 pages is a print out directly of expenditures and its function and object more like this. But but then it shouldn't have been that hard to put it on this because this if if we're looking at budget >> Well, what you're looking at there on the back end is what we budgeted for that for those function codes going into this year, not what we >> That's true. But you based that budget off of actual numbers. And this is numbers. >> Okay. So this this I mean I know it's not broke out by every line item. It's broke out by functions, but it is FY22, FY23, FY24, and FY25 actuals. And then it's comparing I have a column for the amended budget as it was amended amended

013on May 18th when we added the bonus for the second bonus and then those expenditures by that are the actual expenditures through April 30th of this year. And then I've got that beside this projected. So, so if I went and asked you what was in one of these, you could tell me everything that was in there. >> Pretty much, >> but we can't see what's in there. >> Um, you you see what I'm saying? A budget's great, but a budget's based off actual numbers. And if and if a budget's going to increase or decrease, I want to know why. I want to see actual last year's budget. last year's actual so that I >> can't see all of last year's budget until we get to September. That's what that's what she's trying to tell you.

014>> I know, but but you're basing it off at least estimates of actual numbers. And you've got most of the year, most of >> you are. And the largest percentage of what we're basing our projected budget off of is the same thing we've done for 14 years. Right. >> I know. And I asked for this last year and well, I got it last year. I shouldn't have asked for it every year. And and this isn't what you got last year. >> Last year, if I'm not mistaken, maybe I'm wrong, but we had this and we had budget and then we had actual. And even if we didn't have the full year, we estimated the last month or two of the year so that we have actual numbers. I mean, >> so that's what this is

015right here. >> This is what >> this is actual number. this this >> which I I mean when I do the April financial I will have the actuals attached like I do every month >> and I you do and you do a great job and and I really appreciate that. But if I'm looking at a budget, if we're trying to approve a budget, I want to know what it's based off of. I don't want to have to go back through the board minutes and pull previous report. I want to see it all together. >> You know what I mean? Well, I mean, I'll bring you the when we do the April for the next month, you know, for this board meeting, I'll bring actually I can email that report to you, but I'm going to

016have to update. It'll show the expenditures, but I have not updated it yet for the May I haven't updated the budget in it for the May amendment that we just did, if that makes sense. But the expenditures are what they are. They're actual, >> right? So, I can send that report. Just know that I haven't updated the act the budget for what we just amended it for. >> And that and that's fine. Yeah, I would expect that. Do you wouldn't have it done, but I do I do want to see a budget and I want to see actual numbers beside it because I want to know how our budget was last year compared to what we spent because that would tell me whether we needed to go up or whether we didn't need to go

017up. I would I would think. >> Right. >> I would hope what would tell you. And you're talking about the millage rate. No, >> no, >> she's talking about going up on the budget itself. >> Yes. >> Which all of the >> I guess I'm confused now because >> because if if you're not going up or down, then our budget's the same. Why is our budget different? Because we're going up or down. So, if we're going up or down, I want to know why. And that would be based on actual numbers from here, per se. And although we might not have every one of them yet, we should be able to project a month or two versus a whole year. Does that make sense? >> Do you do you understand what I'm saying? Am I

018am I wrong? >> No. I mean, you're you're not wrong about wanting to look at I just didn't know how much detail you wanted to look at because um the detail expenditures is like nine or 10 pages and that is not even the detail. >> Yes. Because when I give this report for the budget, basically each one of these does have the, you know, last year's starting original budget versus the projected budget for this year. And all of this is a I mean I know that we were saying that this in the front was a summary, but each of these pages behind it is also a summary. >> Yes. >> Because this one page for instruction literally on our books, we have multiple funds. We have multiple program codes. Whether it's kindergarten, first through third,

019you know, you know what I'm talking about. whether it's a specific grant or specific specific funding source. Then we have each function. We have each object telling us what you know what it is which those objects and functions are summarized here. But like I could the reports that we have break it out in 16 schools different departments. So, I mean, one line item on this budget could be made up of 200 pages of line items, if that makes sense. >> Exactly. >> Because our chart of accounts is massive. >> Yes. >> Um, I can run a report and send it to you. Like I said, the budget is not updated for the May 18th amendment for the bonuses. >> Okay? >> And as a matter of fact, I can run it through May because I

020was giving y'all numbers through April. But I can tell you when I started out with this just discussion just for the sake of discussion, I was giving you a comparison from April 30th of last year to the preliminary April 30th of this year just to show that the total revenue, you know, last year we built fund balance by $8 million because the revenue greatly exceed, you know, by $8 million exceeded the expenditure. So we grew fund balance. This year at the end of April, the difference between total revenue and total expenditures was only 10 million. And when I ran preliminary reports after we paid that, when you look at April, the revenue for the bonuses was included. But we did not pay the bonuses until May. So when I run reports for May, which they

021are very preliminary because we have not got we've not done the bank reconciliation for May yet. It's first week of June. So we haven't done that yet. But when I look at May, the difference in revenue and expenditures is $4.3 million. So I'm bottom line that you really I think want to know is at the end of this fiscal year I'm projecting that we will have our ending fund balance will be somewhere between 37 and 38 million. >> Does that make sense? >> It does. And and and I know it doesn't make a lot of sense too for it to go from when you go from May to June in the school system. We have all these year-end acrruels that we do because most of our employees are 10-month employees. So their July and their

022August pay is where we've spread their payroll over the whole year. So they earn that money in June 30th. So we have to acrew those expenses back. So from May to June last year we used 7 million in fund balance just from the May reports to the June reports because June you've got three months of salaries for most employees. Right now your central office employees some of the school administrators are 12-month employees. So you got 11 out of the 12 months already expended at the end of May. Is that making sense? >> Yes. So, um, I can go through what makes up, if you look at page three, the increase to expenditures is $8.7 million. And basically what makes that up, what is included in this budget already certificated. So teachers receive a step if

023they have the appropriate experience on the pay scale and that's usually about a million dollar increase and I ran some numbers in budget prep and it that's kind of close to where it's fallen this year. Again a step in I was asked to calculate a step increase for classified salary. So I rolled this classified step and that's about 210,000. And all of this that I'm talking about is kind of on the bottom of that two-page report. The teachers retirement system is going to go from 21.91% of salaries to 22.32%. And that's just roughly about $260,000. The state health insurance is going to increase July 1st, which will incre which will um impact our expenditures in the fiscal year we're in because of the people that get their July and August checks. The insurance will go

024up and the retirement will go up, but it's going to increase. State health is going to increase from one point I mean one $1,85 to 1935 per employee per month. And that is an increase in this budget of about 1.7 million. Um we were asked to calculate a high school athletic supplement and including the benefits the cost of that is about $132,967. >> And that's just working off what you put together. And we've already talked about transfer possible, you know, us needing to transfer funds to school nutrition and we really don't know how much that's going to be, but I just calculated what the cost of health insurance is for school nutrition for next year. It's just my estimate and that's the cost of health insurance is going to be 1.8 million. And I don't

025know, you know, at this point whether we would need to transfer that amount, but I'm just kind of trying to estimate something to go in the budget. So, I'll put a transfer of 1.8 billion in there. Um, I was asked to calculate, and I know this was pie in the sky, so this is not included in the budget. Um, but if we hired 35 first grade paras and this is what I did is I took the bottom of the pay range and I calculated the benefits on it and I included health insurance. So 35 paras would cost $1,640,000 up to that's the bottom of the range if all of them took health insurance. the top of the range if if they have a degree and they have all the years experience the top of the

026range would be 2,117,369 and I also included in the budget there is new legislature that we are required to hire K through3 literacy coaches and the state is providing in the revenue revenue 541,000 for that. They are that is a brand new teacher and that's not including like all their health insurance and all that at this point but by law you know we're required to try to find those coaches. I don't know if we would be able to find them it's late in the school year but those coaches have to have at least five years experience. So I just took six I took our pay scale for a bachelor's degree for a teacher with six years experience and just calculated if we hired all of those which I don't think we'll be able to find

027them you know >> how many how many are we looking at how many coaches >> three additional and we posted the position last Friday after I talked to Rachel right now I have two applicants that qualify I've had five apply Um, a lot of middle school teachers are applying, but they do not have elementary certification and they have to have that's part of the dyslexia law is they have to have five years experience in grades K through three. Um, plus I mean the requirements I had a webinar today. M was kind of laughing because I was on a webinar at the golf course. Um, but the additional requirements they have to go get a reading endement. They have to go get the dyslexia endorsement. I mean, what they're putting on this position is is going

028to be hard to find somebody that's willing to do the additional work and that's required for K through three, which I estimated for 10 because that's what the state, you know, we have 10 schools that have K through three. Um, so I estimated 10 in this budget, but like I said, I think that in the law we're required to try to find those positions. I don't think that we'd be able to place them this late in the year. Um, but I think we have to show the state that we tried. >> Why Why wouldn't we be able to place them? I mean, if they >> you can't find them. >> There's a domino effect everybody. I mean in the school system you >> with that requirement of five years teaching experience. Yeah. It's going to

029be difficult to find. And June 1st has passed under contract. Yeah. >> Yes. M you're looking at 1,300 positions across the state just for literacy coaches and there's a teacher shortage right now >> in elementary. So it's 1300 positions. >> I forget >> right now. So our our literacy coaches that are in place right now, do they not qualify? >> Does that not does that not fit under the law and meet the requirements of what >> how many >> they do? The only thing is right now we currently have coaches serving K through five. >> So they cannot do any math training and they cannot uh do any PL with fourth and fifth grade. So, um, you know, they they currently right now serve all grades at elementary and this is just you can only

030serve plus you have to be in the classroom 70% of the time working with students and teachers in the classroom. So, it's a very different model um than than what we have had in the past. even with their America's Choice coaches. It's very different because we would serve fourth and fifth math and literacy and that's not allowed under this new law. So, >> and and the coaches that we currently have, the academic coaches we currently have are also funded with federal dollars. And this is going to be this would need to be in this general fund budget for these K3 literacy because that's where the the funding's coming from the state. But I think the state will be looking how hard we tried to find them and that kind of thing. And we would we

031would have a few that she's planning on we just might not have the >> for just for clarity. We posted the job on this past Friday or Friday a week ago. >> This past Friday. >> So and then the first was Monday, right? So we posted for three days. >> I mean that's just what we have right now. I have a lot of people that are reaching out asking questions but um like I said I've got seven applicants right now. Only two are qualified based on the rules of five years minimum in a K. I was just wondering why I was three days. >> Yeah, >> we didn't get the guidance until last week. So, we were still waiting to see if there was going to be funding. One, two, what was the requirements? Yeah.

032And and just found out >> and Katusa County posted theirs Friday. Just to give you an idea, they posted all part-time positions. They're only doing part-time because they said, "We're not funded full-time and we don't have enough in our local budget to fund a full-time literacy coach in each school." So, they're doing part-time only and share it schools or um hiring retired that they don't have to pay that 26,000 benefits. >> So, the 10 the 10 you put in there just as a pie in the sky type thing. >> I did. >> Um so, looking at that, I'm assuming those are full-time positions. >> Um, >> well, >> based on now, I know we've got there's one elementary school comes to mind that has less than 200 and I think that law said 200 was

033the >> they they changed that too, Kevin. It said 200 enrolled total in the elementary originally. It was and that's what I based it off of thinking, okay, we can still share all of these schools. And then they came back and said, "No, it's total enrollment." But it's still not real clear because Rachel and I had a very lengthy discussion about this. I think about 15 emails back and forth. I said, "This is the chart I've been given and it says K through three only." She said, "But look at the chart I've been given in finance." So, and then Heather's been given different guidelines in HR. So, and also the law has not been signed. It's July 15th is when we're hearing it will be signed. And we know by July 15th, that's when the

034guidance is going to come down regarding the PL, the training, um the guidance. >> And they base the funding on last year's numbers. So they I mean we've been given the allotment $541,38 and they said that's 10. That's how much they're giving. If just say pie in the sky we hired 10. Next year they would give us the you know if you hire they're only giving a first year teacher pay. Next year they would give us training and experience if we hired people who made more. So it's like the funding is always behind and next year if the person took health insurance they would give us money for that. >> Right miss. >> So there's they're requiring us to hire somebody with five years experience but they're only paying us for one year. >> Welcome

035to the school board because that's typical Travis we that's what they pay and then but the catch is if you think about it the training experience. So Dr. Willerson so he's going to cost me more on the front end from salary right? But on the back end, when I get credit for his training experience, I get more money for him on the but it's a year later. >> Yeah. So they give us x amount of dollars this year. It's not enough to cover them all, but next year we'll pick up some additional funds. >> It's also very frustrating because I've been following numbers since October FE count on every school K through three I've been following. And so I will give you Rock Spring for example, they had 210 was their October FTE. March FTE,

036they're at 233. So you know, then I was thinking, okay, we were looking at 200 to 210. It fluctuates every week in our district, every week. So we were saying if they don't have more than 210 or we even at one time looked at 220 just because it goes up and down. that only had six of our schools with a full-time. But from March FTE to this FTE, Rock Springs is now sitting at 236 in K through three. So, I mean, it's a difference of 22 students in each FTE count. So, it's going to be hard to say you're at 200 and you get a full-time, but then the next year, what if North Lefett is at 281 and they go to 215 or that it fluctuates very much so in our district. So, if

037you look at my March counts to or October to March, it's very different. >> So, let me go back to the 10 people. I know that was on this paper and I saw it somewhere. It all kind of runs together in a little bit, but it was around what $8900,000. >> It was $878,000. And that's if they take health insurance and that's if we find I mean I just put it in there because I think the states >> fund five we're losing 300. >> Yes. Right off the bat. >> We'll pick it up next year, but you're exactly right. On this budget, it's $337,000. But if we're if we try to find them and we prove to the state we've tried to find them and all that. >> Um I just I feel with this

038funding it's like everything that we do. It has its own program code. The state can see what we budget for it that we're budgeting to try to hire 10. You know what I'm saying? They can see that when I submit to the state. Everything is broke out in its own code that they can tell what we what it's for. Does that make sense? >> It does. So Robin, I'll throw you on the spot here for just a second. >> That's why I'm here tonight. >> So I mean, let's say pie in the sky, we find these 10 folks. >> Are we not duplicating services that we already have in place? >> No, it's not the same services because they're going to give us a manual that says in K through three, these are the PLs

039that have to be taught. These are the study groups. the signin sheets kind of make me a little nervous that 70% of the time like how are we documenting that? Um but like two of my um principles said on Wednesday when we met, my school improvement goal is math and they're not allowed to serve any math or she said we're looking at fifth grade. That's a crucial grade that if you don't pass that test, you don't go into the next grade and they're going to receive zero PL based on the way this law is written. Unless we hire literacy coaches and academic coaches. So, we continue to fund academic out of title two, but then you have a coach that just works with K through two that literacy specialist. And that was the thought, Kevin,

040so I know where you're going with this is if we had a the qualification or qualified school qualified for a literacy coach and they can only work K3, then those point 435 academic coaches, they could do the four or five part. Okay? So you'd have two coaches serving that building, but they would be serving completely different capacities and documenting it and being paid two different ways, but you could still use your federal funds for your title two folks and then use the state funds that we got. So, we're not going to find 10, but there's no way. But if we had if we could figure out a way to serve all the schools, K3 and then the four or five component with those retired teachers, we could cover everything we need to get covered. >>

041We just knew we weren't going to find. So, >> so they're not stationary per school. They float. >> Usually, they float between a couple of schools. Yes, sir. Yes, sir. We sure do. >> The literacy folks, if they're full-time, they would be at one school. But our coaches, they typically serve two schools, sometimes three schools. >> And my other concern is we have a school improvement plan like at North Lefett. This was Jennifer Martin that I met with for over an hour and she said math is our goal. If you look, we're making gains with ELA. We put, you know, all of our teachers are OG trained when we look at math. But I also have a concern that we have a district clip plan that we have these midyear checkpoints. So that's We base

042our PL for the year off of that clip plan, but we're not going to be able to do those PLs because they're going to give us the literacy PL that has to be done. So, there's lots of questions and few answers from the state. And like I said, this hasn't been signed. July 15th is the date. So, if you talk to districts, like I said, KATUSA's only posting halftime. Um, I talked to Chickikamonga. You know, Kristen said, "I've never had a literacy. We've never had a coach before." So, any help we get in K through three is going to be more than we've ever had for them. But then you talked to Floyd and they said, "Well, our coaches are going to serve fourth and fifth. You know, they're not giving us the full funding,

043so we're going to serve." And I was like, but the law says K3 and I'm a rule follower and but they're going to serve fourth and fifth grade as well. So >> So the law says fulltime. Is that Am I Am I missing that? >> So it first said if you had up to two more than 200 kids K3, you qualified for a full-time. If it was less than that, they were a five. That's what it first said. Then when they came back they said no. >> If you have 200 kids in your elementary school >> and half >> well that's I mean that's >> that's everybody but Fairland Fairland is well no if you total enrollment it's all of >> our at 181 um with K through three last FTE count. So that's when

044it changed and that's when we started getting a little frustrated because then it grew from for us it grew from two or three to 10 >> and we can't we can't find 10 teachers to fill those spots with those qualifications. >> Well, how's Katusa County doing it with part-time retire? >> They're doing retirees. Yeah. And they're not fulfilling the full law because it says they have to be full-time. >> We're doing the part time >> until you find it fulltime. We're not filling it full time. So, we're doing the part time to fill in the gap of four or five where those K3 people can't do any of that. You had that part-time person doing the four or five. And that's where we go back to the ones we're paying out of title two. We

045could live we could use both of them back and forth. Yeah. Uh but still, we're not going to find 10 full-time folks. We're going to have to figure out the best thing we can do for for our kids in our schools. And the two applicants that we do have are great candidates, but when I mentioned it to the principles, they're like, "You're fixing to take a third grade teacher at I mean, it's past the June 1st deadline." So, you know, other people and I will tell you like in the past when we've tried to hire from KATUSA after June 1st, they will not let them out of their contract. >> It is you could you could make the arguments considered a promotion and PSC will let you out of a contract to go to something.

046You could make that argument. It'd be a difficult argument if somebody comes to me and asks me to make that argument. If they're taking one of my teachers, I'm recall we tried for two years to get that one coach. We finally got her because it was before the July um last year, but or before the June 1st deadline, but they would not allow her. And we we had the argument that it was 10 additional days, but they would not allow her out of her contract in two. >> I I've got a question, but I'm going to wait. I'm going to wait till we get to the rest of the discussion because during that process it may answer question I have >> and I just want to point out and I appreciate Mrs. Hunter's point about

047the actual numbers. To me, part of this is there are fixed costs associated with just the teacher getting their step increase, right? Their experience. You don't have a choice in that. It's a million dollars. You have to pay it, right? Okay. So, those are fixed costs. They they're not going to change. If you do the certificate of the non-certificated increase, that's a $200,000 expenditure. That's something you do have a choice in. You don't have to do that. That's a choice the board makes, right? That's not really based on last year's numbers. That's based on what do you want to do? You know, if you do that based on last year's number, it's $210,000 more this year than it was last year. Okay. The other ones are fixed costs. So, what I try to do is

048I try to put together the fixed cost and give you an idea how that's going to impact this year's budget because it's it's based on last year's numbers and it's based on what we're planning to do. For instance, right now your fixed costs with the things that Rachel put on the list is about $4.2 million. Those are fixed costs, right? That includes uh doesn't include the 1.7 million she talked about state health. That's a fixed cost. We don't I can't say, you know what, we're not going to we're not going to go up on state health benefits this year. We're not going to go up on TRS. We're just not going to do it. Well, that I don't have that too much. That's a fixed cost, right? So the way I figure this with the

049fixed cost the school food service is set aside which is a million8. Okay. And that's a that's a a maybe a potentially a fluctuating number more at the end of the year. Guess what? If they don't have the money it's a fixed cost if we have to pay it right. Okay. Uh the athletic supplements 142,000. That's you don't have to agree to that. You you can say no we're not going to do it. Okay. So that's $142,000. State health benefits you can't. That's $8 million in potential fixed cost. Last year's number, it's 8 million more this year, right? I mean, Rachel, you keep me on. >> It's the starting number. I mean, because we had all this. >> So, the other thing is you think about it, 89% of our budget, 89% of it is

050people. Period. So, if their benefits go up, kicks cost. If you choose a salary increase, that's a choice. teacher experience fixed cost doesn't matter. You we can we can talk about it all day long about what it look it is what it is. It's you have to pay it. You don't have a choice. TRS I can't call TRS and say we're going to stick around 18 this year. Nope. They're going to tell us and I I can't remember the number. It's 20.32%. >> Yes. So I mean it's increase again. So that's the way I start thinking about this budget because I know there's some shock value to that especially to our taxpayers and they're going to say what's going on? These are just in people. Then the other 11% is fuel cost, gas, electricity. Those

051are fixed costs. The only thing that we negotiate right now is a per therm on gas, right? That's the only thing we negotiate. Now, we do put out bids on fuel because we buy 10,000 gallon increments, but we don't I mean, that's that's still a fixed cost. So, in this budget, there's not a lot of wiggle room at all. So that's why we have to look at and then the other thing I love to point out especially you'll see it on that one pager just going back to 22 you have a history we run this by history every year 3% savings 5% savings 6% savings we watch those expenditures like a hawk even though some of them are fixed and some of them aren't when we don't need to spend we pull back and wait

052and see what's going to happen because we have a history that we we don't overbudget. Everybody goes, "Well, you're you're overbudgeting." No, we have to budget for contingencies. For instance, what are we going to do next year, Rachel? If every employee that can take health insurance takes it, >> we're not going to have enough money. >> We're going to start giving blood to make the budget. >> It's $32 million just in last year's number. >> Oh, that's last year's. That's right. >> You kind of get what I'm saying? These numbers aren't things that we can all say like you know you you guys could look at this and go Mr. Reigns we want you to take that 13982 529 just cut a million dollars out that's connect just like she said that line of code

053is connected to >> schools it's it's hard to do that. So what we try to do is we try to look at every position. We try to look at who we're replacing with whom. Like the 435 folks, they're fantastic. They're working 17 hours a week. They get no benefits because their benefits are through TRS. It's a win-win for us. But there's a not a lot of them that want to come back and work now. So that's even becoming more of an issue for us. So I just want to point out that some of those things we can look at. athletic supplements, um the the step increases, those are choices the board will need to make, but the rest of them, they're fixed cost. They're not going to change. And so, even though, and I don't

054disagree with Miss Hunter's point at all, you got to look at last year and go, "Okay, real numbers. What are we doing?" But when we go to department budgets, we tell them right off, the first thing you start looking at is how can you cut in your own budget every year? For instance, yesterday we told them the forecast in education, not Walker County, but the forecast in education. Next year, every school will cut one position to attrition, maybe two. Well, that's 16 or 32 people next year. Why? Because the benefits keep going up. So, the only way for us to balance our budget is what? Is to cut people. That's the only way we can do it. Because with every person is 23, 6 and I think >> 23 for health insurance it's 23,220 >>

055for every employee that takes it. So, so that that's those are the strategies we're using right now is to look at okay what are the fixed costs what do we know we can't argue and then what are the things that are within our control and the one thing that's within our control is first of all how and when we spend money if it's not something we need we hold back on it that's why we have that 3 to 6% every year where we come under expenditures so think about this past year I just took 5% if we if we don't spend 5% of what we budgeted this year and that's what we're tracking on right now. Somebody give me a guess what that is on our budget from last year. 5%. If we don't spend

0565% of what we budgeted for expenditures next year, I'll tell you >> 7 million. Good job, Travis. Wow. Hey, get him something. That was That's a pretty good guess. $7 million. Okay. $7 million is only 5%. So, we've been historically three to six. So, we bank on that contingency that we build in that we're going to it's going to and it's going to remain in fund balance. That's why Rachel and I disagree a little bit on fund balance right now because I feel like it's going to come in a little higher than 38 just because of what we're going to save from this year's spending. Does that make sense? So, I just want to point that out because you've got some decisions to make on certain things. Um, classified folks, not everybody gets a raise.

057>> So, okay. I'm trying to get the information in my head. Sure. If what we've got is fixed then that leaves us uh with contingent that leaves us very little arbitrary decisions as far as contingency is concerned. Right. >> I I don't I'm not necessarily following what you're saying. I think I know what you're saying, Dr. Willerson. It does. It's very limited on what not not just limited as the board limited for all of us to to do with trying to figure out a way to pull back and save because if you've got let's just say for round numbers 90% people 10% operations. If your budget's 90%, the only way to reduce your budget is to reduce your number of people that are working for us. That's that's the only way in that side. And

058then on the other side, it's difficult in operations. But what we try to do is like for instance, we just got the bond money. So we'll try to use ESPOS money for allowable expenses. That might save us money in our operating budget. So that 10% we may be able to save some of that next year because we have allowable esports funds to use. Does that make sense? >> Okay. >> So we have so uh in a sense we have to compartmentalize and look at >> 100% >> and look at each look at each section and make a decision based on uh how we're going to move one from from one place to another I guess so to speak. Well, I I and No, I appreciate the way you're thinking about it. Not at all. Not

059at all. No, no, no. I want you to get I want you to have a good understanding of it. Yes, sir. Yes, sir. Not not at all. I just I feel like I have to give you that big global look of things for years and then you you then you narrow your focus down to, okay, what do we feel like is a a budget? And here's the catch. You got to think about what your tax digest look like. What's your millage rate? And how much money is that going to bring in for you from revenue to be able to support the budget that we have? And the good thing we have going currently is we have a very healthy fund balance because we did a really good job of spending our federal dollars in a

060way that really helped us build our fund balance. But you also don't want to continue to dip into fund balance because if you do, at some point you're going to have to make some hard decisions. And the hard decisions were 52 people lost their jobs and our employees that stayed had 10 furlow days. So that means they had 10 contract days that they didn't get paid for. That was the only way we could balance our budget. I don't want us to get back to that point. But that was hard on our employees. So right now we're still we're dipping into fund balance, but it's at a very minimal amount because we're really watching what we spend. However, we're looking at the forecast and we're going next year we're going to have to start reducing staff

061and we'll do it through attrition just because health benefits. I mean, think about it. This is year four. They've gone up and they're they're over 100% that they've gone up in four years. We don't control that fixed cost, but we can control the number of people that it affects. And so then those start to come a little more into balance. Is that does that make that help? >> It's it's starting to >> No, no, I'm good with that. If you if you look at where we were last year when we were working on the budget, we were budgeting revenue and expense 11 I mean $10 million apart. It was we started out with 121 million in revenue and 131 million was our first budget that we approved for FY26. And I keep calculating this stuff

062over and over again. I don't have a crystal ball. I don't, you know, I just kind of know based on history and all that stuff. We are going to dip in the fund balance about $3 to $4 million. That's what I'm projecting right now. But the difference between revenue and expenditure budget for this year was 10 million. >> And and explain where do you think that 3 to four million is coming from? Because there were certain things that health insurance was one of them. health insurance and I mean TRS went up um >> TRS I mean there's certain things that were given to us during that budget year that >> yeah the bonus actually too because the bonuses that we gave were 4 and a.5 million and we got two million from the state that

063right there is part of the fund balance we're using um another thing that I added in this budget that we've never had And there is at the end of fiscal year 25 in in all the years that I've been here and I way before I came the state would make us budget an on behalf payment for pensions for TRS and PS. It's always been in the budget and I just kind of estimate it and at the end of the year the state sends me something where I have to book a revenue and expense. So, it doesn't doesn't um change fund balance, but we had never had an own behalf until the end of FY25. And I was trying to close out the books and I got an email the week before my my reports were

064due to the state telling me to book an on behalf for state health because the state made a payment on our behalf for health insurance. So I had to book a revenue and expense the week I was closing and it was a million and a half dollars. So when the auditors came at the point that I found out we were going to have to book this revenue and expense which you know it didn't impact fund balance because it was the revenue equal expense but I did not have it in the budget because I didn't know it was coming. So when the auditors came, I had already submitted our final budget to the state before they even told me I had to do that. So when the auditors came the next year, they're like, "Why didn't

065you have this in the budget?" And I said, "Because I found out about it after we closed, you know, when we were closing." So that's something else I've added in this budget because I've been told it's coming. And this is something probably that I need to amend in the 26th budget because it's coming again. So, I added a million and a half dollars to the expense and to the revenue. So, it's it's a net as far as fund balance goes, but that's in the increases in this budget, if that makes sense. >> Now, now they tell you to do that for what is that for? What was that for? >> It is a payment that the state makes. It's called an on behalf. Mhm. >> And if you look, you can't really see it like

066you said, you can't see the detail in all these expenditures, >> but if you look on page two in the revenue, >> I saw it in the revenue. And I was kind of down towards the bottom of the page, it says on behalf payments. >> And last school year, all I had in there was pensions. >> Okay? >> And that was $277,000. And that's just based on years past. So, I just estimate it every year. But revenue equals expense. And it doesn't always come out to be what I budget doesn't always turn out to be what the state sends me. They send me an email at the end of the year and I have to book an entry on our books. But it doesn't hurt. I mean, you know what I'm saying? It doesn't touch

067fund balance because revenue equals expense, if that makes sense. >> So, they're saying this is an estimated expense that we've paid on your behalf. >> Yes. For >> Yes. But in years past, they only did it for pension and it was around $277,000. It kind of fluctuates from that. >> Yeah. >> But in FY25 when I was closing out, they sent me it was a million half dollars. So that's why I've increased this so much in this budget that what I increased revenue the exact amount I increased expense >> and and they've paid what on our behalf. Is it for pension or is it for benefits? Did they say >> they pay? They did the pension on behalf like they always do, but they in addition to the pensions that I've always budgeted and we've

068always had, they did a million and a half for state health insurance >> and and my my understanding of that is they would have gone up on us more, but the state kicked in some money, but the state but the the department of education and financial review and the auditors expect us to book that on our books, revenue and expense, and it's equal. So it the only reason I wanted to put it in the budget is because the auditor said why didn't you budget for it and I said well I didn't know about it and it was too late to amend the budget by the time I found out and it was that all over the state. So that was >> so it's not it's not an acrruel income expense and it's at that point

069they're saying we've paid this on your behalf and you're going you're going to cost this >> and it would be an audit finding if I didn't book it. So, so I have added that, but it's a million and a half and it's a wash. It's not going to touch fund balance because I put the exact amount in revenue that I did in expense, but the expense is spread out all all over the they tell me where to, you know, >> so it's spread throughout this budget if that makes sense. So, that's another part of that 8.7 million increase. So it was a million and a half or somewhere around in there that I increased revenue and expense equally if that makes sense. So that's part of it and that's one of those things like Mr.

070Reigns would say. I mean if you know I can not budget for it and then the auditors can fuss at me for not budgeting because I know it's coming now >> now that it's started. >> Um and we were told to do it. Yeah, we were told to budget for it now that we know it happens. All right. So, so just looking at this very simple-minded non-financial person. >> All right. So, budget basically is showing an increase of 8.7 million. >> Correct. >> You said just a few minutes ago 4.2 million is fixed. >> Yes, sir. >> Absolutely. >> Well, actually 4.2 plus the 1.7 and the 1.8 it's actually almost $8 million. The only thing that's not fixed in that calculation is the 142,000 for the athletic supplements. What I >> and and the

071classified >> I didn't even factor in the classified for that fixed. Um y >> and also in that there's a small amount the school administration budgets um Angela and I were looking through all those and we increased their administrative budgets uh 118,563 which is not much. you consider a spread over all the schools and basically the administrative budgets that we increased it was their funds for mowing grass and we consulted with Jamie Devity on that um before we did that increase and then we increased our supply count which is basically what they use to get toilet paper from the warehouse. So um and cleaning supplies too I mean the supplies but anyway it's not a material amount that I think is much needed with the school's budgets. Basically, all of these pages and the summaries

072like if you look at page four, the instructional services, most of that I mean it's the salaries and benefits of the classroom teachers and a lot of the line items in this is what we all lot to the school. We give them instructional aotments and we give them maintenance allotments and a little bit of funds for administrative like if their school bookkeeper needs a computer or something like that, we give them some funding and it's all based on their FTEES and based on their enrollment each year. And another area y'all would probably look at it when you look at the detail on page four and on page five in the big packet. The biggest increase if you were looking at that summary page for the expenditures. The largest increase that you see in here it

073looks like in a line item is on page five in pupil services. And the reason that it increased so much on page five for people's services is because in years past we always budgeted for the guidance counselors under instruction and that's on page four and last year I had them in instruction and we were actually in the middle of this budget process and Angela and I went to Calhoun and the Georgia Department of Education and Financial Review said we want you to move all guidance counselors out of instructional and move them to the pupil services budget. So if you look at the instructional, we had them in there last year, it's kind of towards the bottom of the salaries at the top, the guidance counselors, and then this year that zeroed out. And then if

074you look on page five in people services, we've moved them over there. And that difference, it looks like that difference with counselors moving out of instructional has been offset by the increase in benefits. >> Yes. >> And also the the I guess the I say raise the the extra fun the extra with the step increase with the teachers. Yes, sir. >> It's kind of offsetting. >> You're exactly correct there. that it looks funny cuz normally in instruction that's where you're going to see your biggest increase, but since we move the guidance counselors and it's not showing that it's not showing the largest, it's showing an increase, but you're right. You know, because of the increase to teachers experience, if that makes sense. It just kind of looks funny when you move that you pupil services

075has such a low increase in instructional, doesn't it? Instructional is always our largest category. It's usually like 65% or so of the budget. This year, since we moved the guidance counselors, it's more like 61%. That's a lot of information. I mean, as far as the detail expenditure report goes, if I can get on the program here in a little bit, I can email something for Stacy to for y'all to see as far as just I can run a report through May. expendes just don't hold me accountable for not changing the not adding the bonus to the budget yet. >> Mr. Davidson, we're going to have fun next week. >> Lots of conversations, huh? And I'm not sure if y'all know in the state funding too in the revenue on page two. I don't know if

076y'all noticed this, but the state came and cut last year. They had increased the transportation budget by I think it was a half I think it was a half a million dollars last year, but they've come back and that was kind of a big disappointment. >> They increased the amount of money they put in bond buses, but they cut the transportation budgets. Yeah. So, still depends on how many you qualify for. And another thing that I usually point out when we're doing this and the revenue page is, you know, I'm all the time talking about how when we when we decrease the millage rate, it has a impact on our equalization typically two years later. And I was expecting it to go down because it was it was it went down last year from 12

077million to 9 million. And I was expecting it to go down again. and the state came back and increased the whole equalization budget statewide. So, we didn't we, you know, we gained a million and a half there in revenue on equalization because we're going to have instead of we're going to have 10.6 million in equalization, which I was I was thrilled to see that when they sent the lockers out because typically we lose money when we lower the millage and we've been lowering the mill. So, So when we start looking at attrition next year. >> Say I'm sorry. >> Will we start looking next? >> I thought you said it. The Christians. No. >> So, so >> what what kind of as we start looking at this, any idea, any even ballpark projections of where

078we're looking numberwise, what we're going to try to reduce. And I tell you where I'm going with this. I I'm looking again, very simple minded looking at this. Yeah. I'm looking at what we're taking in and what we're sending out and we're 14.3 million in the hole. >> Mhm. >> This year I mean from total revenue >> well to balance your budget. You're not in the hole but you're going to use >> we're going to have to use that fund balance and that fund balance is not going to be sustainable doing that. >> So we've got to start I mean that's got to >> stop. I mean, so I guess that's, you know, what what kind of impact do we start seeing with attrition? Where do we start? Um, you know, where do we start

079that conversation? >> So, so that conversation's been going on for 10 years because think about it. We've been talking about pair prep, all classified folks, because our neighbors next door, they're they're they're sending all that out. They they don't do that at all in house anymore. They contract out everything. So, their pairs were given the opportunity to go through attrition and wait till they retired if they were within retirement or they could go work for these other companies. And so now they're pushing all of their services out to subcontractors. So that way I don't have to pay the benefits at all. So it lowers my benefit cost right off the bat. But the the cost I pay with those companies is I mean it's substantial. It's substantial. That's the one thing. And they're having a

080hard time finding paras and bookkeepers. And so it's I don't know. We're just shifting a little bit. I mean, the hope would be that they work on state health benefits and start lowering the cost that's associated to the local school system. That's the first thing. But, but to your point, if you look at the number of teachers we've had for years, we've not necessarily added a lot of teachers. We added more this year than we've had in years. And that was because we added those programs at launch. Okay? So, what we're trying not to do is duplicate services, but if you've got 25 people a year that are retiring, that's probably one or two in a building, right? So, you just figure out a way not to replace some of those positions. We're trying not

081to lose programs. I don't want to lose opportunities for kids because I think that's important. But to your point, Kevin, and I don't think we're going to use 14 million. That's why I gave you the fixed cost and then I gave you the potential $7 million in savings. You're talking about potentially using fund balance this year at more like $6 million. Still too much, don't I? I we agree 100%. But the only place I've got to look at with saving $6 million is in people. And so we just let the principles know at the leadership meeting on Monday. Look, next year here's what we're going to have to do. Now, in the same time, and I don't want this to be, you know, public knowledge or classified folks, but at some point we're going to

082have to look at contracting out some of those services because Michelle is struggling to find employees, but she's also trying to balance that with participation rates. And it's that's why we're budgeting a,800,000 potentially to help out in that department next year. So, we're going to have to part that but this is not they're not coming in. >> No, no, they're they're still not finding the employees, but they are pushing folks to that where they can go to work for the contract company. So, they don't pay the benefits, but they pay the contract cost. So, it is a savings potentially in the long run. But Kevin, I don't know. It's like you remember we had this discussion when you were transportation director. We talked about first student in some of those groups, right? So they come

083in and buy all your buses so that the first year's contract is really low, right? >> And then the next year it's exponentially more and you don't have buses and you you're held kind of cafe, right? So that's part of what might happen. We're trying to make sure that we're looking at it strategically, but we also know that there's another piece to that is we know that we're losing a lot of students and that's not a Walker County problem. That's across the state. Population, student population down is across down across the state almost 6%. Okay? They're going somewhere. We've got to figure out choice and flexibility to offer kids to get them back in our doors because that's where we maximize our funding formulas. So if you can do that, you offset some of your

084losses with health benefits and things because your FTE is growing. Does that make sense? So I mean it's a it's kind of a dual sword right now to try to figure out how to combat this. But 100% if you lose people, those benefit numbers are going to come down. You just don't want to sacrifice service and programming to your students. But you got to find a way to get the balance. >> And we do have some contract employees right now. We have um what is it? Speech therapists and we have um >> sped paris. We actually have a few sped teachers on. So we've reached out in those capacities. We're finding people or they're finding people. So we don't pay the benefits on them. And that's why it's there's a value in my opinion to

085our 435. I have to pay that side of it. I pay their salary and that's it. I don't I don't worry about the benefit. But there's just not many of them that want to come back and do that right now. So that's a little frustrating. And basically when Angela when Angela and I build this budget, we take the position a lotments that that um where they have sat down Mr. Reigns and and and Mr. Davidson and Heather Hall have sat down with each principal and worked out what their schedule looks like and what their their teachers or positions. They give those aotments to us and basically we run reports and we say okay in budget prep we have our current employees. So all this is built on our current employees and like we would take

086Ridgeland and say if they're going to have I don't know just rough numbers. If there's 34 teachers in budget prep at Ridgeland and we know we're hiring 35 we put a vacancy and we just kind of create and we're making up it's all based on their pay for this year and those current teachers. So all of this is a it's I mean it's just our best estimate. So, if you have a 30-year veteran with a doctor's degree that leaves and you hire a brand new teacher, the pay is going to be different than what we budgeted. Does that make sense? And when we're budgeting, we don't budget 100% for health insurance. We look at what we've been spending on health insurance and we just try to estimate based on the new dollar amounts what we

087need to budget. And if in this budget we're looking at when you're trying to compare one year to the next, if we see that we have too much health insurance in instructional, but we don't have enough in bus drivers, we're moving the budget all year long. I mean, we just can't change the bottom line that y'all have approved. We can move within categories. >> So simp the simplicity of it. The bottom line is you look at what's coming in and figuring out how you're going to come up with the rest of it. Bottom line, right? >> And on that front page, to Kevin's point, you're looking at what you're bringing in, what you're projecting to spend, what you started with, and what you're going to end with. And Kevin's exactly right. 14 233 392 is

088what we're projecting to over spend over revenue. Okay. So, we've got to figure out a way to and again fixed cost they are what they are and then I always try to factor in what we typically save in the previous budget year because that kind of offsets what you're dipping into fund balance. But to Kevin's point, the only way to combat that is because 90% of our budget is in us. It's in people. You you've got to reduce the number of people that you have. And with a with a shrinking enrollment, you only have two options. You maximize this funding formula with what you have or you cut your your staff. If you remember when I started 52 10 furlow days and we had furlow dates for the next five years, four or five years

089>> to to to catch back up and then we going into co we had a fund balance that was comfortable and we were operating here and then what happened covid hit benefits went up 100% TRS went up again fixed cost no choices So the only way to offset that is to start reducing the number of people that work for I'm just again looking at this and I think what Phyllis was saying wanting to know more specifics and and and this this is probably not the right term to use but I feel like some of this may be padded and I say padded I mean if we're if We're spending 93 94% every year. You know, that 67%, you know, $7 million we're we're off on and and we want to be for the good. And

090I get that. We want, you know, we want to have that contingency in case something comes up. But is that not what that fund balance is for? And I think what Phyllis is saying is, you know, if we correct me if I'm wrong here, but you want to know what we spent in these categories basically, are we, you know, and if if we need to adjust that, hey, we need to put more in this, less in that. And I like how that that puts you in a bad spot because, you know, I'm hearing you say, "Hey, it's it's there's kind of an eb and flow here and it's we need to move from this account to that account." That becomes almost just imposs almost impossible task to keep up with. But, you know, when we

091when we look at this, is there a way to get this closer to, you know, >> and here here's your >> to the to the to the, you know, being closer to 100% instead of, you know, and that's, you know, and again, I'm not a financial person, but to me, this should be pretty acc should be more accurate than >> typically a budget is within about 5%. And and let me explain something else as far as this budget goes. >> So when I talked about the school allocations, so we all lot funds and we have to all lot them equitably in order or you you jeopardize federal funding. And so we do the allotments for the schools based on their FTEEs for each grade level. And we all lot every kindergarten child gets the same

092dollar amount for instruction every you know and all that. So we do those a lotments. So we've got 15 schools spending this budget. And if we have one school that every year does not spend that budget, so that's part of that percent that's left over, we cannot go cut that school because we have to allocate the funds equitably. So, if there's a school or two schools that don't spend all of their money, we can't just go cut those schools because they didn't spend it because we have to give them all the same amount and we have to prove to the state that we gave them an equitable amount or we jeopardize our federal funding. Um, there are other line items, transportation. We've always budgeted a little extra in fuel because and I can cut fuel

093right now, but I'll probably have to come back sometime next year and do an amendment depending on what fuel does. But that's an area where we always have money left because we just kind of budgeted for contingencies because we don't know what gas prices are going. But I could probably cut that. I mean, I can run you a report to show you we've not spent. And as soon as the prices started going up this year, Josh contacted me and said, "You going to need to bump up the budget for fuel." And it's like, I think we're good, you know, this year. But there are places all over the budget like that. You see what I'm saying? But I can't go cut the three schools that didn't spend their money because I have to allocate it

094e, you know, equitably. Does that make sense? >> So, it's kind of hard. And if you look at basically accounting practices, and I don't know, I mean, all I know is governmental. That's all I've ever done. So, out in the business world, I don't know how close they get their budgets, but within 5% when you're dealing with millions of dollars, it's not a bad budget. Now, this I think is a bad budget because I don't like dipping into fun balance. It's it's driving me crazy to be honest. But >> 87% of this is >> you're dipping into fund balance based on costs that have been assigned to us that we have no choice in. You have to keep that in mind. It's not that we just decided this year we're going to not at all.

095This $7.7 million is fixed. It we don't have a choice in it. So, and back to the real numbers, let's just use the literacy coaches. We hire 10 literacy coaches, and the best ones we find are all doctorate degrees, but we budgeted >> 878,000 is not going to cover it. >> But then, you see my point though, we budgeted for that. So, sometime we went the wrong way. So, what we do is we budget that average and what happens? We typically it's teacher, it's a first year teacher. So, you've got a contingency of those nine years. It plays out pretty well if it's a fiveyear teacher or a six year, but if it's a 25 year with a doctorate degree, we're coming back to you and saying we're going to adjust the budget. Does that

096make sense? So, it's not that. And I've heard people say that there's fluff in budgets. There's not. What we have to do is we have to look at every category and say, "Here's what we spent last year. Here's what the forecast is currently. Here's what fixed cost to us. Now, what does that need to look like for a budget?" And that's what we've done here. And and Rachel and I both agree 100%. Because if you remember, this was in what's the first year you came, Rachel? 200 >> 2018 when I came, we were projecting to have a ending fund balance of $1 million. We did wind up with 5 million, but we were I was at the bank and I was prepared to do a tax anticipation note where you borrow money to pay payroll

097and then you pay back interest. that according to the law if you borrow it to a t a tan a tax anticipation notice note you borrow it that by law you have to pay it back to the bank by December 31st but we don't get the tax money at December 31st so I mean I've even heard of districts paying it back December 31st and then borrowing again January 1 because they didn't really have the money to pay it back at that point and we watched every my first year here We put I mean a bill would come in in my department and it's like that's not due for three weeks. Set that one aside. We're not fatted this week. I mean that's what I was doing my first year here. >> And so my point

098there was this mean interrupt you but but my point is this at that moment. You came back with a $5 million fund balance. Okay. So there wasn't fluff built in there. We watched that budget like a hawk all year long. Okay. And we really got lucky because those average salaries that we budgeted for, we had those folks that came in under that average. And so it saved us the money, right? So that's what we've had to do. But at that point, TRS was at 11%. >> State health benefits was >> 11340. Now it's 23 >> exponential. So, and I'm not making excuses. I just think it's good for our general public to know >> did your health insurance over the last three years go up 100% not 1% not 10%. 100%. That's what local districts

099are now having to figure out how to balance. >> That's hard to balance. So again don't fluff may not have been the right word. >> No, you know, but I guess what I'm saying and if I and again you're the expert on this more than I am. If you're saying within 5% is solid, >> then we'll, you know, let's roll with it. I just >> I mean, I don't >> I'm kind of like where Phyllis is saying, you know, I I want to, you know, >> see some actual numbers. >> Yeah. Kind of >> and I'll use Let me just use one. Let's just go to page five. Go to page five. Actual number last year was 123 227. That's the very first number you see on 121. actual number this year is 123 227.

100>> Those budget numbers. >> It's a salary number. >> Okay. >> It's a budget. >> Well, but my point being is you have a salary that they're going to get, right? That's the number that we use. And so we get that same salary again because this person does not qualify for the $1 million. Not they get one million, but in that number that they get a an experience increase. if they did, you would see that experience in there. So the these are basing it on real numbers because you get a budget that says here's what your teacher is going to make next year. So that's what we start building that number off of. Then the new teachers coming in or the replacements, the ones that have retired, whatever, we try to build in that average

101salary schedule. They may come in less than that. They may come in more than that. So I I get what you're saying is to look at real numbers. I I do get that. But I also know that we we try to base it as we forecast on what historically we've seen that's played out every single year. >> And and that line is is one person. You know who that is. That's that that's easy. You know, like you said, the fuel for transportation that that that market fluctuates every day, >> right? >> But that's one of the numbers that since I've been here, we have not gone over in fuel. >> Right. there's there will be money left in that line unless it just really goes crazy with fuel and I don't I don't have a

102crystal ball so and and and all of these numbers like I said they are based on our current employees but if we if we had a vacancy we just estimate what does that pay usually look like we'll take a we'll take a fiveyear teacher but as they go come and go and next year what we base this on was this year's it won't be the same people there next year and they will not fall on the same salary sc they won't fall on the same degree or years of experience. So it's always going to fluctuate >> and >> how hard would it be if could you we have these positions this year? no names positions and positions we anticipate next year or even if we did that I don't know monthly so we'd know who's

103hired who's left or whatever but I'd just like to see we have x amount of positions and it would have to be based on their position no names no anything like that would that be could we get something like that >> I'm thinking about how hard that would teachers hair pros directors We could probably take a lotment sheets and just narrow it down to numbers by position because a lotment sheets that we get from HR actually has names on it. >> Yeah. And not >> we just kind of run a report in budget prep because budget prep is an evolving if someone quits then when we take them off payroll they are no longer in budget prep. >> Right? >> So at a given point in time that position is gone unless we know it's

104vacant to add a vacancy. Okay. So, it's kind of a this is a lot of work process, but we probably take a lotment sheets and just put this school this many teachers, this school this many that kind of thing. Is that based on the ones we actually have or just the ones we're >> Well, the sheets that we use to do this are a lotment sheets that we get from uh HR and basically it is it could have current people and it might be where we're filling a vacancy and it says >> this is based on what we've earned. >> This is not necessarily what we actually have. This is based on the aotment sheets where HR and the superintendent and and assistant superintendent sat down with each school and determine how many teachers they

105would have next year. >> And what we do is we take that sheet and we run a budget prep report. You know, like if there's, you know, 42 bookkeepers or anyway um So, we just kind of try to to estimate, do we have enough in budget prep? And it might not be how much that person makes when we fill that position, if that makes sense. >> Yeah. >> So, we're trying to estimate. >> It may not even be a filled position. >> It might not be. It might be a vacancy. >> That's where part of that 5% comes in because you've got vacancies every year with certain >> and we might not fill that vacancy. So, you're going to have money left in the budget which might be a good thing. which we put the

106budget print on what is expected to happen and they get what they're supposed to >> try to put it on. >> Yeah. So like if we had six vacancies and custodians throughout the district, >> we added six custodians. >> Well, we might limp along without all of them because we couldn't find them the next year. So then we have money left in the budget. And health insurance, think about it. If we budgeted for those six to have health insurance and they don't come, that's a lot of money, too. >> Well, and and that's the reason I'm asking is if we could see those positions because, you know, I know we've been we've a lot of positions open that we could not fill >> and maybe they're in here, too. And if that's true, that's fine.

107Just I'd like to see that. Does that make sense? We might talk >> and it may not be that we could I don't know because it does fluctuate so quickly. We may not by the time we give you a number it'll be changed. >> But but as far as looking at the expenditures as long as y'all don't, you know, fuss about me not having the budget updated for the bonuses because the bonus expenses would be in there. >> So the actual would be right in the report and I can run your report through May. I I think that would be I would like that. >> But um like I said, it would be the same report I have behind every month's financial report. >> Well, will it be in the next month next board meeting?

108>> The next one that we do, we've done through March. So, the next one would be April. So, it should tie to the numbers that I have on this page here. That's through April in that column. >> But even if we do through May, even if we know there's going to be some adjustments. >> Yes. And there could be adjustments. something >> I can just run that report and then let Stacy upload it. >> One more one more question. I think I think I know the answer to this. I just want confirmation. >> If we look at page four, actually page five. So instructional services, I'm assuming this is your folks in the school. This is your teachers, your substitutes, your basically >> every that instructional is basically everyone in the classroom. >> So their

109their benefits if I go to that increased I'm showing 1.2 2 million. >> That's that's T is that TRS interest everything? >> That benefit line, that's a good question. That benefit line includes FICA or the employer half of FICA that we have to pay. Um the retirement, the health insurance, maybe a small minimal percentage for unemployment that we have to budget somewhere. Um, so if the and actually, you know, if the salaries go up, you can expect that to go up because the FICA and the TRS are percentage benefits. >> Okay. And then jumping over to pupil services on on page five. >> Okay. >> So if if that's classroom, it's pupil services pretty much everything else. >> That is a great question. So pupil services is it's it is other services for students and

110it also has the the student service department here in that budget too. But it so it's got your student services personnel. It's got your school nurses, your occupational therapists, diagnosticians, and we just moved the guidance counselors in there during this past school year. uh school psychometrists, social workers, the the family engagement people at the schools, the mission support, homebound, I mean medical assistance. It's all it's not instructional, but it's all pupil services that >> those two categories are the are the majority of our employees, right? >> Well, no, not really. >> Okay. I mean the instructional the instructional part is most I mean because I mean teachers is our biggest population then your guidance counselors in that would be pretty good too but if you turn over to page p turn to page eight page

111eight is media there is not a media person in central office all of that is schools so that's your libraries And if you turn to page 10, that's school administration. And school administration is principles, assistant principles, school secretaries, and bookkeepers. Anyone school administration in Georgia, in Tennessee, they called it office of the principal. So anybody and you cannot use that account code on anyone at central office. Everyone in that is schools. Um, if you turn over to page 12, maintenance and operations, that is the maintenance department, but it also includes all of the school custodians. If you look under custodial salaries, >> that includes all school custodians and central office. So that's maintenance and custodians. Is is school safety new? >> Uh yeah, actually school safety we received it was a brand new function. >>

112We used to put school and school safety items under maintenance and operations because that's where it fell. But in FY25, the state added that new state security money that they gave us a lotments. They gave us what was it 4746,000 per school or something. But anyway, they added that and they added a new function for just safety and security. Um, she's talking about page 13. Yeah. So, this they added it to our budget last year and we had about $700,000 and it is basically that's where we started paying for the SRO's and the, you know, school security. Um, is is that who the uh contract services certificated law. >> Yes, that is SRO's and those security guards. >> Okay. >> And and basically you'll see that there's a big reduction there for next year. >>

113In this current year, the state gave us the regular funding 700 something,000 that they gave us last year and they're giving to us again next year, but they also gave us a extra grant and it was $324,000, but we won't have that next year. Okay. Um, in a lot of these different accounts I'm seeing communication. What What is What is that? What's in there? Communication. Yeah. That telephone. What is that? >> Um, yeah. Well, in in 2600, that's the telephones. And that actually that's another thing. In 2600, I told y'all the custodians were in there. That is also where we give the schools a couple of those accounts. Um the supply money that they we increase for toilet paper and stuff and cleaning supplies comes out of that. >> Is that >> the communication is

114the telephones? I'm sorry I didn't answer that. >> Oh, you're fine. You're fine. Is that the same for um improvement and instruction? That one went up that double. It's 5:30 count >> part of that one. Most of that one under instruction I think would be for I added 530 and 532. >> 532 is subscriptions. I probably shouldn't com those together because that's probably most of it under like under 2600 maintenance is the telephones 530 but 530 and 532 532 is subscriptions and we have a lot of um subscriptions for instruction and that sort of thing online subscriptions. That's a great question. So almost all anyway most of these have some some pieces of them that are school budgets like even under instructional staff training on page seven that's professional development. So if we have professional

115development money that we give them as part of their instructional money that goes in that. So some of that some of these codes could be central office and schools. That makes sense. Does anybody else have any other questions? >> I understand about all I understand tonight. >> It's a lot. >> I'm just being honest. >> We can appreciate honesty. I guess my question. Go ahead. >> I guess my question would be do we need to take a hard look at contractor services maybe the second semester of this year? Uh as we as attrition takes its toll with saying custodial or this that and the other we need to start thinking about just going down that road in the second semester and giving it a a whirl if you will. I mean I think may not

116it may be who this will start trend in that direction. >> Should definitely open the conversation up to folks who are getting close to the end if they want to choose to through attrition and you know finish out with retirement and then if you've got folks that you have vacancies you decide all your vacancies would go through a contract agency that's what most of the districts that have tried this are doing. Um you know I I think it's worth definitely worth looking into and starting preemptively to have that conversation. um just to see if there's options because we still got custodial positions, a lot of classified positions that haven't been filled. Some of them have been filled in two years. So, >> is that is that something that we could go to a third party

117and just say, "Help, not help help, but uh help." >> What we could do, uh Mr. Milton, is is get with a couple of the districts that have done that and they write an RFP and you push that out and see what kind of response you get from them. We could definitely do that. And I I just know that at the in the factory life we're we're using five right now and that we're still struggling, but I think it's an opportunity that something different. It's hot 110 degrees and it's >> sure >> all of those things. I just think could be an option to start trending that way >> in order to offset as much as we can as quick as we can. We actually did try that at one or two of the schools.

118>> Yes, we did. We when we opened Saddle Ridge, we opened with a contractor service. We after about two years, we we pulled. We had it at Rossville Regional High School. We pulled and it was because it was not the same person and they missed a lot that they wouldn't feel shifts. They just they were going through the same they were having the same problem we were having before. in custodial work, we find that folks that are local, they take more pride in their buildings and and a lot of times there might be an alumni or they they live in whatever. Um, so but but to your point, you know, >> I'm just trying to throw throw something out there and see stick. >> I'd hear 100% of what you're saying, we do want >>

119in house as much as we can, but at this point, I mean, to Miss Coper and and custodial services of being so short-handed, >> we got not not exploring options is not an answer. >> Sure. I think that anytime we can explore those options fortunately or or unfortunately then we probably need to go >> and we did that what two years ago Michelle or was it two years ago? Three years. >> Three years. Okay. I knew we reached out to a contract agency and just it was a struggle for them too. But we could definitely get an RFP together that included a variety of services um and and push that out and see what kind of response we get from it and um and start that conversation going into second half. When do we anticipate

120getting the tax information from the assessor's office of what next year is going to look? I mean, we're we're kind of >> I've normally received a preliminary by now, but I have not received anything and I know there was a lot of extra there was a lot of tax legislature that could hold up that. I mean, there's, you know, >> we've had some changes in the tax office, too, that you may have some new personel that have to catch up, >> but they have stayed on top of the checks to us. >> Any additional thoughts on the um certificated step on the athletic supplements? Um, and I guess what I'm trying to do is I I I want to make sure that when that advertisement goes up, we at least have something we can post.

121Again, it's going to say tentative. It's not going to say an approved budget because you guys will do that on the board meeting tonight, but um is there any thought on that because those are you know little things that you know we can add take away at this point before we post that. So I just wanted to kind of get your thoughts on that. Uh or we can post this and then we can continue this conversation at the planning session. >> I can put tenative on. >> Yeah. So, but that by law, we have to at least post that on our website when the ad hits to be in compliance. And so, we want to make sure that we're doing that part of it correctly. >> I think from the classified standpoint, I I don't

122think you can afford not to do the steps. I mean, that's um to me to me, folks that are classified deserve that everything. I I'll vote for that every year for them. Um, you know, so I I think that's a that's to me that's a fixed in my mind that's a fixed >> thing that we just it's the right thing >> and I factor that in as fixed Kevin just so you know, but I wanted to make sure that I got clearance from you guys before we included that. I didn't include the athletic piece as a fix. I left that as an option >> and and to me that's that's in $138 million. that is such a small piece and I think we've got to get more competitive with neighboring districts. I think that's a

123that's a given as well. >> So other than the the detail down that Rachel's going to work on that will take us up to the month of April u or is that right? >> I can do May. >> Okay. Okay. May >> it'll include the bonus. So, we'll get that to you and then I I guess my suggestion would be that you know as you look and review and have additional questions, email those to to Rachel, Angela, myself and that way we can be prepared for what we present to the general public on Tuesday night. Um, and then again, that'll give another week after the presentation and any comments that we hear from the general public to make adjustments or corrections before we get to Monday night. we present again with any changes and then

124that would be a tentative item for vote on Monday night. So just keep those if you have questions make sure you're sending those to us and we'll get that information as quickly as we can to one other thing I I will kind of throw out there too and this is this has not been part of this conversation tonight but again asking asking about the appraisal kind of the appraisals from the tax assessor's office. I have absolutely no desire to go up on millage rate any kind of tax increase and if a roll back you know becomes necessary to keep from doing that I'm in favor of doing that again so I don't know how that factors into this as you as you look >> basically I just when I was working on the revenue I

125was just estimating based on what we've done this year so that would not be any kind of a tax increase >> but if they come in and we have to roll back the mill to keep from passing along. I mean, that's, you know, that's kind of my mindset going into this as well. >> So, I don't know how that what that would look like in here, but just kind of if if we're looking down the road, I wish we could get that information pretty quick. >> I'll reach out and try to get some information, see if we can have get a preliminary digest. >> And keep that in mind, too. That's I'm glad she said it that way. The preliminary is this. We did this one year. We based our meeting dates on the preliminary.

126Then they changed it. If it stays within a certain percentage, you're okay. But it didn't. So we had to re and so it pushed us into it was late September. No, no, not September. Late August. Might have been early September. But anyway, >> one time y'all did it in like November because the numbers were wrong and they changed and y'all had to redo the whole meeting. It was before I came. >> So we pressed to try to get as quickly as we can, but we're at their mercy on that, too. But but again the projections that we're looking at for revenue are based on what happened this year. And so typically if you get a roll back then basically they're saying that you're going to collect the same amount that you got last year. It's

127going to reduce the so >> any other questions comments. >> We need a motion to adjourn. >> Second. All those in favor, we're