001Did you know that next to the whole state but the the land bank about beach next to co >> Oh yeah >> which is interesting it's been an interesting thing so watch >> um >> there's so many of the competing interest in preserving the space >> yeah really shar Sorry, this is being very uh >> good morning. >> Sorry about that. >> Great to see you all. I just want to listen in because I have to be busy working with other stuff. >> No problem. >> Good morning. >> Uh, all right. We will call the meeting to order here. It's officially 8:05 a.m. Um, first item of business is the assistant superintendent reports. Is under that the FY25 uh budget quarter or report. Um so there is a copy of the financial report in the
002folder from today's meeting. Um I had sent it to the Senate committee members but I don't know if I had shared that with the full committee. So um there is a copy if anyone would like to be able to read through that. Um so the LA25 operating budget is closed. Um we were able to close the books um about mid July um which is appropriate timing because we have to close make sure that we're closed by July 14. um the operating total operating budget expenses for the fiscal year um as reflected in the loan report was this fall 68 225 233. So that number includes the original operating budget appropriation and then that number also includes the additional million dollars um from the stabilization fund and that was approved in two buckets and two actions
003during town meeting in the amount of 700,000 and 300,000. And so we did um as we had projected we utilized the full operating budget funds and the million dollar from the stabilization fund. Um in the report I provided a summary of some of the areas where we saw significant overages between the initial um budget [snorts] appropriation in the operating budget and what the um overall expenses were for the fiscal year. So you can see um th those are broken out by specific line items. But I also tried to or I also included a reference to the cost center because the financial report is summarized by cost centers. Um and you can see some of the historical data as well. Um and we thought that it was important to include this so you can see what
004the utilization has been in the past. um what it was this year. And then um in the report I also included information on um what we had initially built into the budget for fiscal year 26 which is the current budget that we're operating in. Um so in the report we provided um information around substitute coverage. So that was something that we had talked about um multiple times throughout the course of the year because that line was when we had looked at it in January um and then continuously from January until the end of the fiscal year. We knew based off of the expenditures that we had that we had already incurred as well as looking at what we were going to need to utilize what we had projected for the remainder of the year. we
005knew that that woman was going to um be overexpended by a significant amount. And then I also provided some information around um one item information around special education transportation and you can see again um the expenditures the budget the expenditures that we ended up having for the year 25. So, at one point, just a note to this, and this number isn't included in the report, but at one time during the fiscal year and um 25, we were looking at special education transportation, we were projecting that closer to 3 million um and the number ended up as the actual is 2.7 million. So, that number although it was 1.2 to over budget ended up coming under what the projection of. It was still over though. So I think that that's a really important point and that's
006why when you see the fiscal year 26 proposed for transportation that $3 million was more reflective of the cost that we were tracking during fiscal year 25. Um so there's just a little bit of invarance there. Um there were also a number of expenses at the at year end when we were looking at the overall expenses um that we had incurred throughout the fiscal year that were covered by our revolving funds in our grants. And so we talked a lot about supplemental funding through circuit breaker which is the reimbursement program for special education expenses through the state. we were allocated additional funding um in circuit breaker. That was the $434,000 and that was um that truly allowed us that was a big portion of the funding that we utilized to offset expenses from fiscal year
00725 and that allowed us to close the books with the original operating budget appropriation and the additional million dollars from stabilization. That being said, we had to utilize that money. And so, um, starting this year in circuit breaker, we only have $8,000 to start the year. Typically with the circuit breaker funding, um, you like to start the year with a full year of reimbursement to start the year because those are the funds that you utilize. And then as you're paid your reimbursement throughout the year, you keep that in your revolving fund because that funds your next year's worth of expenses. And so right now, because we had to use that money to close in fiscal year 25, the circuit breaker balance is only $8,000 to start the year. >> Full year would be full. a
008full year would be um last year our reimbursement was the the original reimbursement was three million. >> Oh wow. Okay. >> So this to to Katie's point the state guidance is always to have one year's worth of circuit breaker in your >> in your account and spend it and get the next one. So that that account instead of having $8,712 should have roughly $3.1 million. >> That's the gap that we're all worried about. That that that's where the gap ends. That's that's >> that doesn't mean that that's the sole responsibility of the gap. >> Correct. >> But that's ultimately where the it shows up in in how we are organizing the budget. >> Can I ask a question about that? So how does that relate to excuse me the the special education is itself we
009talk. So that would be for just to clarify the circuit breaker is for the out of district placement costs or unanticipated out of district. Is it all is it all unanticipated special education costs or only as they relate to transportation in that district? It's a a percentage of that. >> So circuit breaker is the reimbursement. It's just another funding mechanism in addition to the operating budget to help offset those costs. The special education reserve end which is completely separate can be set up for unanticipated costs. So circuit breaker is really utilized as a funding mechanism for costs that are known. So when we create the budget, we're creating it saying, okay, these are our gross expenses. We know or we are hoping that we are going to be funded through the circuit breaker program to
010be reimbursed at an amount around $3 million. Um, and so we built that into a budget. The reserve fund, special ed reserve fund is completely separate and that is a fund that you can utilize throughout the year that if we have any unanticipated costs that weren't budgeted. And so if we have a student that moves into district that either needs um supports like a one-to-one instructional assistant, an additional um teacher, BCBA, all of that support staff that there's a cost associated that we did not have in the original budget, you can use the reserve fund. >> Is circuit breaker though, is it specifically or do I have this wrong? Is it more specifically for it's budgeting cost but it's a percentage? Is it only of the district and transportation or is it any is it
011other things as well? >> So circuit breaker reimbursement is for um tuitions at a certain threshold that the state um sets we're reimbursed over. So if the if the state says that um the threshold is 50 and we spend 75 we get reimbured for 75% of the 25,000 that we were over that threshold >> and then that is the same with transportation and then there is a threshold for some even some indist and just to add to that conversation thank you Katie circuit breaker was a reimbursement program from the state so lags each. So what you spent in the previous fiscal year, you get those dollars in the next fiscal. >> So that's why they're always telling me to keep it keep it steady. >> The any kind of sped reserve fund or stabilization account
012that any local community makes, it's their decision to add a layer of support. >> Yes. >> For the unexpected costs coming on the current year. And it's always best practice to have two, you know, uh, co-joined um, revenue sources for that shock absorber of being able to go through a year. >> A lot of, you know, the the guidance is one year of special education circuit breaker funding in your account while you pay through. And you always you should always have that balance being right around one year's worth. And people, we all understand that you have good years and bad years. So that may go up and down a little bit. Um and so always trying to the intention is to balance roughly the size of one one year's worth of the circuit breaker and
013have x amount of dollars that are set aside by your local town in order to to contribute to that support as well. >> And so in my just for my own education the sped reserve fund within the Milton public school Milton has a balance of zero. >> It's established it has not been funded. Mhm. >> And initially um if we kind of go back to conversations in January and February, the initial plan was to establish the fund and then fund that with a million dollars. But that was the million dollar that was the initial goal was to put that in the stabilization fund. But that was the million dollars that we ended up having to utilize for this year because our expenses had exceeded appropriation >> last year. >> For I'm sorry. Yes. >> So
014in so as a as a as a community member, you're you're you're letting me know that the override worked and we're very thankful for it. And in order for us to pay backwards to FY25 to pay those bills, the the [clears throat] planning that we had originally intended to fund the circuit breaker reserve, this this Fed reserve fund had to go backwards and pay FY25. >> Yeah. But that was from um free cash, not from funds raised through the override. Okay. Specifically, I mean it was all part of the big mix of money. Fair enough. Yeah. So the the the goal of the district should be over the next three years in Kenyon and I talk about that a lot is we know you can't get back you can't just work one year and get
015back to the point where your budget is $3 million and we're going to have to the district's goal from a financial standpoint should be to incrementally >> let that circuit breaker account maintain a balance that grows. and hopefully over two to three years start to reach that $3 million mark over time and convince the town to support the Fed reserve fund over time. No one's going to come in with $3 million and say, "Okay, we'll take, you know, but we we have to be thoughtful." You have to start somewhere. And so the sumware is whatever funds are left, whatever we can do to be prudent this year, whatever remaining dollars around special education services, whatever the budget, we we would want to be able to keep at least some of that into the circuit breaking
016all the reserves reserve so next year we can add a little bit to it. So we >> we don't live in this place forever. This is this is a very very uh concerning financial position to be in um given uh the uh the um variability of those lines that are involved that have not funded at this time. And if I can just add in addition to that, that's the special education um budget and circuit breaker and the reserve is just really one component piece of the overall operating budget. >> We're talking about special education because we want to make sure that that budget is solvent so that we don't have to draw from other areas of the budget to be able to cover those expenses. And so by focusing on that, by making sure that
017we have a circuit breaker account that has um money in it and we're not starting the year continuously at zero, by making sure that we have a reserve fund, if we have unexpected costs that come in that may be tied to a student that has an IEP, we don't have to reallocate from there. Having funding, having reserves, having um the accounts in the at a place that it we feel is more appropriate allows us to keep the other lines of the budget um intact. And so it's not that you're drawing because the operating budget is a bottom line budget. It's not that we're having to draw from other pieces and say, "Okay, we need to freeze. We need to not spend here because we need to take that money and reallocate it." We're truly trying
018to make sure that this area is funded appropriately and the other areas can retain the funding that was appropriated originally so that we can continue to operate in the way that that we'd like to. That is that all being said with the revolving funds, we have revolving funds in addition to circuit breaker special education revolving funds. We have a facilities use revolving fund where where we're receiving in money from fees that we're charging um outside organizations to use the facilities. And because um what had happened in 24 and a piece of it for 25 is that we have to use some of those revolving funds, some of the revenue in that account to offset some of the operational expenses. And truly the goal is to get to a point where we have three months of
019um operating expenses worth of revenue in the revolving fund and we just continue to make sure that that balance stays in the revolving funds. So we can use the money that we're collecting to contribute back into the programs that we're collecting the fees for. meeting. If we're receiving in revenue for building rental, we want to make sure that we're using that revenue, not to offset the cost of turning the lights on, but to be able to take that money and to refinish the gym floors to potentially um help offset the cost of redoing the turk. So, we're not there yet, but that I think when we talk about the three-year plan, 5-year plan financially of where do we want the district to go, we know that the operating budget, we we have a projection. We
020just, you know, were um we just received an override, so we know what that that number is going to be because of Prop 2 and a half. And so I think really focusing at the revolving funds and making sure that we're um each one of those accounts, the revenue coming in is not just going towards, like I said, keeping the lights on, keeping the key, but actually being able to take that money and invest it back into those specific programs of the um the district itself. >> Couple questions on that piece. Like you mentioned the special ed reserve like we know for this circuit breaker we've talked extensively on like what best practice is for that. What would be best practice for the amount as a town we should be having in the special ed
021reserve count is it like >> 10% of our overall spend budget like what is there you >> so Mass general law says that we can have 2% of our net school spending um amount as our ceiling. as our ceiling and the special education reserve fund. I don't have that number. I don't have our net school spending number in front of me. And the last year that we would have had that was um finalized. The last fiscal year that was finalized and audited and sent to the state was fiscal year 24. Um but I can get that number, but it would be 2% of those overall expenses. So it would be 1 something million we could have in the um in the special education reserve. >> Okay. >> And that's typically the guideline. And so that
022can incrementally increase year-over-year if we continue to increase how much we're spending. >> Yeah. I think it would be helpful because I think we have some of this you brought this to discuss this but like to have a some fiscal policy around like what is our goal for each of these accounts to like have that written and adopted and just clear of like this is what we're working towards because then also I think that policy helps us guide conversations if we need to have them with select board around like when the precache number is going to come out at some point this year right it'll be conversation How are we spending this cash? Is it positions? Is it supporting this year's operating budget? Is it one time expenditures? And so if I were them and
023just from our school committee, I'd like to say like, well, why are we asking for x amounts? We're asking for, you know, $200,000 allocation to circuit breaker reserve because over a fiveyear period, we want to build this up to a million dollars or whatever >> kind of our long-term goals are. Um and I think like doing that also with you said the community schools right the three month I don't know what three months what the thing would be for the facility account that's like three months worth of just like total facility costs for the district or you know each of those kind of revolving I mean you have so many revolving accounts here that like some you know high school play I don't think necessarily policy around what needs to be kept there or college
024not after school. Um but I I guess I would my hope would be there are accounts there that we we want to get and keep at a certain number in order to maintain best practice. Give us this kind of like flexibility financially moving forward that's discussed. Have you all so in this conversation you've mentioned like trying to restore specifically circuit breaker funding over the next two to three years. Have you started specifically modeling out what those contributions would need to look like and where that funding would need to be >> from basically I don't know if that's the right that's the word you can use. >> No that's okay. >> Okay. Um so when we build the operating budget, the operating budget is always built with a gross number. So the the total expenses that
025will incur and then we factor in the amount of additional funding or not additional funding but the amount of funding that we're going to utilize from the evolving and the grant to offset that gross expense. the net of the two becomes um that net number is the funding that we ask for as an appropriation through the town. And so when we looked at originally when we had looked at fiscal year 26 we had said okay circuit breaker is zero we know we get around last year it was um $2.8 8 million. So we built in originally $2 million offset in the operating budget. And so that's tricky, right? Because uh decrease in revenue is the same impact as an increase in expense. So that puts more pressure on the operating budget because we essentially shifted
026$800,000 of expenses into operating. But that was in the hopes of for this fiscal year we would get receive a reimbursement of 2.8 8 million only have allocated 2 million to the budget. So we could save the 800,000 and then continue if we could continue with that amount we'd be up to the reimbursement amount. And you know, I think the goal needs to be three to five years >> because we can't do it in a year because we're not going to have $3 million in operating that we can just say we're going to >> and there's a reason that special education reserve funds because that's >> and so that is it's we can't just have one mechanism to be able to um fund those gross expenses because we know that's that one mechanism. M which
027is the appropriation from the town is only going to increase 2 and a half% or whatever year overyear. Um and so that was the original plan. Then as we worked through the year the our expenses for special edc. So we had to iteratively increase the number for circuit breaker that we thought we would have to utilize for this year. And so that number for circuit breaker is um originally we were hoping to only use the 200 the 2 million and now it's 2.8 million just because of the expenses. And so again last year the the reimbursement for circuit breaker was over $3 million because we got that supplemental money at the end but we had to use it. And so the hope this year is that if we can stick to what we're saying we're
028putting into the budget, the hope is that the reimbursement exceeds that and we can keep that in that account to iteratively continue to increase that balance until we're back at the place of having a full year of reimbursement. Does that answer your question? Yeah, >> I'd like to add to that that there's there's room for a good discussion around which revolving accounts can generate revenue versus which revolving accounts can't. >> So, for example, when we think of the big accounts that we're really talking about, we're not talking about the plate, but we're talking about circular breakers reserve, >> community schools, facilities, athletics, community, transportation, right? Mhm. >> So with some of those, you can actually say if our three-year plan is to create a revolving account that has a balance of X, >> how do
029we want to get there over 3 years? Part of that would be how we discuss the offsets. What's the percentage of on uh hard money meaning operating uh town of Milton money versus the fee and is there any amount of fee increase that you want to have in combination with increasing the offset that can build that? you can strategize that around athletics, transportation, community schools, uh, and facilities because we can charge certain amount. So, there's flexibility to be strategic about that and build it over time. The other bigger ones like special education, transportation, um, Fed reserve, uh, circuit breaker are really dependent upon the reimbursement amount for the expenses that we have in those areas. >> And that becomes a there's no revenue generating lever. in that equation, right? So, with that with that said,
030that really comes down to how do we want to organize ourselves and organize our operating budget >> from a larger standpoint? What are we spending our money on that we might want to pause so we can actually responsibly look at a short-term to long-term plan of adding dollars to those accounts incrementally over time. >> And so, like that that's the big picture question. So the I think the strategy is different for each revolving gate account and we would want to identify the the ones that we're kind of talking about today and then what's the strategy for that? Um and in uh I think that's a great question. I think we should set goals. I think having a policy around that would be helpful to your point Mark. So when we have the FY27 budget compensation,
031you would like to see the budget at X, no one wants, people will know why those dollars going into those revolving accounts have is a valuable asset to to build over time and that there's a reason behind it. It's part of the bigger strategy of keeping the teaching and learning budget bold. >> The teaching and learning budget is fairly stable. You >> know what I mean? So that that 80% of the budget or 75% of the budget works. you know, we have x amount of students pretty much every year. We had we placed 51 students at the elementary level. Uh this week I don't have the number yet of how many middle school, high school, but but those are absorbed in the classroom. So that's a pretty predictable amount of money. The the variability of
032other accounts is what we're trying to protect against and that's why those Republican accounts matter >> to uh to protect against that. Um, but I think having a a strategy and maybe some policy around that would be really really helpful for the budgeting conversation for 27. >> I also don't know and I and I could be misspeaking since the first year that I've been doing it. Um, I'm not sure we've ever talked three to five years out and so as we're looking at the calendar, so if there are things to your point for both like that's part of a bigger strateger budgeting planning strategy, right? how you're building across time and so um I don't know what it looks like but if there's a way that we start you know as a team we start
033also looking at that three year and five years so we know [clears throat] >> to your point okay the we are here now the goal in three years is to be here not just necessarily for circuit break or or other things but recognizing that we have it's carrying for a certain amount of like what that future planning looks like um >> as opposed to sort of in this year and the next year, but that would also have that future goal. I think that might be helpful in figuring how to put that on calendar. What what that looks like, I don't know, but helpful and maybe that's even part of the discussion tonight around you know some of the goals or governments or whatever that might be some a way that we look at that piece
034of it. But I think that would be helpful to have that, you know, immediate short and longer term. >> Absolutely. I I I I I agree and I think that we when we look at our budget being 80% staffing people salary versus non- salary we really have to be thoughtful about right sizing the district in order to be in harmony with what the override dollars will look like in terms of revenue for the town. My my the way I explain it and I hope it makes sense to folks is that if we can rightsize ourselves to say all right we know we're going to have these 100 people to do this work over the next four years 3 to 5 years now we can begin to put in the educational strategies and program development that
035we want to see not grow but grow in terms of its work with children to have outcomes shifted change even if it's 100 staff a year but we know we have those if we start with 110 and we plan on 110, but we know in two years someone says, "Hey, you're growing. We we can't afford 110." Now, we're always having that budget conversation that goes up and down and and tilts the ship. So, now we're having money conversations every year that impacts the ability to implement and execute the strategy. Mhm. >> I would rather know exactly what I have for four to five, three to five years and build a strategy around that funding level than debating and and trying to garner more or go up and down because then the strategy shifts every year.
036So now you're never looking at a fiveyear plan. You're always looking at a one-year plan and that that doesn't sit well with what students need and how we're trying to provide a long-term incremental shift in programming or culture or how we go about our work. uh it's our job to make that 100 work, right? And and make the programs fit that number. >> And um and so I always say I'd rather be a B+ budget for five years in a row than have an A+ budget for one year, go down to a B+ than maybe an A than maybe a C one year or have have a threatened to go down to an F, which is what happened between FY24 and FY25. So that the consistency of the budget is aligned with the consistency of
037a strategy to implement education program that's good for students in their own and one of those doesn't work in parallel with the other or in harmony with the other. There's no strict there's nothing you do there's no long-term plan. Yeah, I I agree. I agree with the point of Yeah. But I think having a financial long-term vision on the issue term three to five years is it's helpful to see where we expect those those bumps because we just know our staffing costs are >> even if we're not adding staff that's not increasing at two and a half%. Correct. Increasing at more than that. So there's also just >> some of that too of >> Yeah. What's that like with your camp? >> Um, yeah. I hear a question though of like where that fits from
038the counter thoughts on that. Is that something that we should do as a part of before the like FY27 conversation or as a part of FY27 say here's what we're thinking about for FY27 and this is within the context of FY28 29 30 done in the past done this so from a from a staffing and program and educational lens of strategy it's definitely part of that because you can't do I like the idea of starting with some policy and some agreement around how do we want to incrementally build up these these revolving accounts whether it's through discussions about increase of fees or the the ratio of how much we're using operating money versus revolving count. How do we want to build these? Because when we start to build these then we can feel safer about
039what that what that other 80% or 75% of the budget looks like. I I do believe that um right sizing the budget for F127 will be part part and parcel of that being what is the best first step for a consistent budget right right sizing the district for the next 5 years I think is the FY27 conversation whatever we do for FY27 should be what we say we can do and work with for the next three years and then I think it's a great conversation to Nick and his team about, >> you know, we should already start talking about revenue in October, September, October. What's the revenue projections to your point rolling everybody over whatever that number is is usually more than 2 and a half%. >> So, we're at a 5% average. >> I
040think recently we've been at an 8 and a half, 8.89. So, we really need to be thoughtful about how we and we're going to have to work within parameters, finding out what those revenue parameters are and then right sizing the district that that's in harmony with what whatever we think those predicted revenue outcomes will be or projections will be to be to be in compliance with the town. Here's the money we're giving you. We expect it to be this every year keeping cola roll over etc. And that would probably mean not adding anything or or adding something in a year two or a year three as part of the educational demand that we didn't forward over time. >> Yeah, in my mind that really gets like what is what is the educational plan, right? what
041what are the initiatives we're rolling out the resources we need for those things to be successful and adding or reallocating moving things around like we're doing roll out of a new ELA curriculum like what what do we need in order to have that be successful and have people at the time to really deeply know and learn and give feedback on implementation >> yeah it's going to be it's going to be a very valuable exercise this to bring community voice into voice into what do we think is important for FY27 and how we want to reallocate funds within what we have um and start with that conversation and start with with what we have and see if we can do that because I think we have we have I believe we're well staffed in order to
042meet the needs of students and um I would also suggest that over time I think that we can be more efficient how we use our staffing needs students generally speaking. Um, and just some questions on the numbers themselves. Uh, just John just couple minutes before this, but obviously the thing that sticks out to me is the coll jumping out. Can you just walk through, >> you know, Yeah. what's going on? >> Mhm. So, um, the subs are very much broken out at the school level because that that speaks to how we need to report the information out to the state when we provide our financial information. we need to make sure that we're assigning um the staffing to the appropriate location because I think that this report and reporting the expenditures in this way can
043be somewhat misleading. So I don't want to sit here and say the staff in Kolkat takes a lot of time off and we just have to the um the work of coordinating the subs is based in Kolycott and so I think that that is the way that we have reported some of the expenditures historically. I think when we look at >> sorry does that mean >> it means that the person that organizes the substitute coverage is based at poly >> district elementary I'm sorry elementary so when we are receiving in the information just across payroll some it will get lumped into college and so I I think when we look at the expenditures for the elementary schools we more need to look at it from kind of like an elementary perspective rather than >> I
044agree with that and I would say that Katie and I and Mari uh Don are going through every single staff person >> yes >> every single unit team member and checking them against payroll in the budget and when they're placed in their school >> and what we're what we should acknowledge is that there are at the elementary level there are support services like BCBA or OT or PTS speech that go across schools that have to have a court homeschool. >> So there could be people that have their just homeschool or color button, but they could actually be someone that works in college by >> Cunningham or they could buy this. >> We had to rightsize a couple names and moved them over or they could have been moved over to the Tucker but not not
045through the budget. They they just they're accounted for but they're homeschooled. They shifted over time. So to Katie's point, the any individual school's numbers are less important than the overarching number of four elementary school districts. And [clears throat] we've we've and I showed Mark this morning, we are going through this name by name, school by school, position by position, FTE by FTE to make sure that everybody is in the budget at the right FTE in their home school is accurate to where they actually perform their services. and we will update that every year because it's appropriate for someone uh especially like an art teacher who might travel or someone might be moved to transfer. We want to capture all that and make sure it's all apples to apples. So, uh to Katie's point, it's not
046a collod thing. It's an elementary number. It's >> Yeah. and it's high, >> you know, and with all that being said, minus $335,000 is is a is a delta, but ironically, when you look at what was budgeted for FY25 was a number that was reflective of the FY22 expenditure. So we're not but our the the pattern that we're seeing in some of these numbers is that the number of dollars projected or budgeted in these zones stayed stagnant as the expenditures grew and Katie and I are trying to Katie especially is reconciling that to we're budgeting to our actuals average actuals over time. So that 406 that was spent in in FY22 uh it looks like the FY25 budget was built around that number that was 4 years ago postco and we've grown by FTEES and
047and this number includes maternity leaves our building subs long-term subs whereas if we start to look at what does Westwood do what does Denim do what is what are other districts doing are we aligned with how many dollars we're spend on substitutes would want to tease out that number because some districts don't put their building substit but they might be payroll. Some people might differentiate between a long-term leave i.e almost a whole year versus you know 12week leave. So this this number is everything. Have any of those assumptions changed since FY22 that would account for some of the increase in terms of um the maybe we're here in FY22 but in terms of compiling it's like in terms of that in FY22 we weren't including building subs within this number or we weren't including maternity
048leave coverage like longterm coverage number is there anything else that because obviously the growth is >> as we talked about Yes. One one big factor in this is the change of benefit from having only uh to having both parents of child being able to take family medical leave. >> Yeah. >> You know what I mean? So now we have you know 10 years ago I wouldn't be able to take family medical leave if I had a child. That law has changed. That's implemented into the law into the contract. So now that that that allows for you know more people to access that benefit which they have the right to do it's the benefit but it also has a cost associated that that that first thing that brings my mind you know >> I think that
049um there was a rate increase I believe it was in fiscal year 24. >> Yeah that I'm not sure if it was um if the substitute rate increase was ever reflected in the budget. I think another piece that I always think of is um in fiscal year 22 and 23 we still had the um supplemental funding that we had received because of COVID and so we were still able to access her funding in funding and one of the pockets of that funding um that and and I don't know specific and I don't have specific numbers to be able to speak to but I know overall All some districts did use some of that funding to offset the cost of substitutes because there may have been a practice or a policy put in place saying if
050you're sick, you can't come to work and we're going to assign the sick time as or whatever substitute coverage as an expense due to >> this and then use the federal funding. So it may be that because these numbers are reflective of the expenditures that are being reported in the operating budget, but there may have been other pieces of funding that were covering the expense for substitutes and and that would be consistent with that COVID funding timeline. >> And so that's a great point. Again, during those years, folks should have been able to know when that SR money was going to expire and begin to build the branch of operational funds to be supporting that line and that should have been bridged in probably around 23 24. >> Yeah. >> 24 25. So, you got
051to imagine maybe do we also know I assume we also hired some extra buildings. I'm just looking at your extra duties of jumping from 26,000 to 128,000 in a single year and then jumping to 100 243,000 the next year. I mean those are those are increases that can't be explained by the the sub you know costs going up you know 15% or >> so that's that is definitely a point of exploration that we going to have already had initial conversations and I think we'll continue to have conversations with the building principal and other folks that we are involved in the underpinnings of why that number's high. >> Yeah. I also want to say too when we because we are going into um a year where we will be negotiating with the union and our contracts
052and um when we look at the contracts and the financial implications of some of the changes that occur, it's not just tied to the cost of living and the salary increases. There's other financial components that could potentially change. And when we make changes in the collective bargaining agreements that have financial pieces, we need to make sure that we're building those into the budget. And I think that this you there could potentially be examples of this with expenses where it's this amount one year and it jumps and it could potentially be that there's a new stipen, there's a new rate, there's a new hourly rate that we're using. Um that was built. So it's built into the collective bargaining agreement. We all we all collectively agreed to that. Um but we just need to make sure
053that we're budgeting appropriate. >> It's not just about the two and a half%. >> It's not just about >> the example would be the um the language negotiated last year like every other district in the state but supporting the first several weeks of FMLA and parent parental leave. You know if you have two people that go out that that might not rub against your budget a little bit but that will hit the budget line you know. are not. So say we have 10 people go out and they have access to four weeks of leave paid by the district, four weeks times 10 people salary is a significant number that will show up in next year's actuals in that by 26 in the in the subline. >> Yeah. So to to your point, I think it's
054so important, Mark, that these these key identifiers are understood, right, when we go to the town for money and say, "Hey, we're holding the line. We're 100 people. We're trying to do the work here, but we have other costs that are connected to whether it's collective bargaining or how we how we are trying to stabilize our funding in financial planning, which are policies related to revolving accounts, funds that we need to put in certain lines due to other obligations that we have through our contract. Those are the small and medium rocks that we need to acknowledge when we're building that plan out. And they hopefully educate them on that's why we need additional funding. as far to having. >> Yeah. Again, I think there could be many reasonable things that um result in this. Obviously,
055the last negotiation we had agreed to changes within the lead policy would rectify [clears throat] that those are positive for staff. Um so like there could be very legitimate reasons why this is increasing. I mean it's just a given scale in which this is increased especially in particular locations it's just one of those things that we need my opinion make sure we've investigated say like okay what >> is all this like >> right or is there something that's kind of gotten off the rails with >> how this is being managed that we could tighten up and get back we're talking about all these other things like we get back $80,000 and can put that towards the special education reserve accounts reduce breaking cost like those are all things that >> the part that's freaking me
056out a little bit is I look at it what's proposed in our FY26 budget for subs is $100,000 less than what we spent last year >> and I just did some quick math if if it sub expenditures grow at the level they have been we'll be looking at almost a million dollars in expenditures this year just steady state um so you 15,000. Um so I do think if 680 is what we spend share I think digging into a set of controls what's going on >> on the expense side on the expense side >> and that's why I tried to help the um coverage budget because I really think of it as a coverage budget and when we were trying to project out in bill 26 it's hard um the substitute budget is difficult because it's
057very fluid. We have differing numbers of teachers that are taking leaves every year. We have and teachers are able to utilize this time when they um need it as appropriate. And so it's really hard to project that number out. Also that we don't necessarily at this point have a lot of data where I can look in and say, okay, this we had this this is what the attendance was. like that's I I don't really feel like I have that choice from a budgetary perspective and I think that's a lot of the good work we'll do um with HR this year is like giving that information but that's why looking at the coverages and trying to project that out trying to look at it as an overall coverage budget so maybe having to reallocate from extra
058duties to into subs because we may be able to find a more costefficient way to control the coverage rather than paying individual duties maybe higher um deals and could potentially be more cost efficient. Um so definitely concerning I think the concerning part like right now we're we're we've done work to get to the um budget to actual. It's just the exponential growth. we're not going to be able to continue to increase the budget exponentially like that because there's just not going to be the room. So, we really have to be able to put some controls in place. >> And when I look at those two charts, I I um I worry a little bit about what what's budgeted and what the what the um projected increase might be. But I think what's more in our
059control uh is is um extra duties. >> You know, folks are unsick, you need a sub. we can strategize around will it be at building sub versus internal coverage and maybe adding a little bit more to the daily rate to recruit, you know, to have more people that be at $10 more to our daily rate. Is that what is that a better number than having five people to pay us cover at x amount of dollars? So there's some small lowercase strategy around that but I think that we may have more internal controls around an expense side on how we want to analyze extra duties and what we can reduce which is that number. Um so I think to me from an expense side which we have to pay attention to um extra duties is going
060to be in front of that focus as well. That number is just too big a pair and really have to unpack that number. um [clears throat] thinking point you're getting to to them around like that $100,000 gap between my mind that's something that also we'll talk about more passing following me um let's see what are the point in FY25 that is concerning FY26 I don't And hopefully where we spent much less than maybe what we could just size >> and do we see that as a Q1 conversation like trying to to have that conversation >> and then we put it out at some point around Q1. >> Yeah, we haven't done it before. So this is the first year we're doing it. So that's >> I think that's Q1 conversation definitely. Um because the FY26
061budget was built off of the FY24 actuals and now having the 25 actuals, it allows us to just almost double check the work and then make adjustments as we need to. And then that if we can realign to make sure that we are taking into account some of this increased costs then that will definitely help us start the year kind of like more aligned >> in starting the year more aligned. Um Katie and I met with uh Stephanie O'Keefe. We are going to have a proactive budget page uh as opposed the budget page itself on the website is a very solid uh resource for the community. Um and uh it was following the work of during last school year, but we want to be in front of the work this year from a communication standpoint.
062So we'll be having in my monthly newsletter a section about the budget page, letting people know what's new on it. Please go to it. always having it in front of people coming in their inbox and then if there's any changes or things we want to bring to people's attention during the month our principles do weekly and we'll have a section of that from Stephanie and from Katie and I that will go in the weekly so we're drawing people's attention to here's the budget page here's all the resources you need um this is what we're doing why we're doing it um this is up this is upcoming this is what we want you to pay attention to uh instead of just putting it up after we're trying to bring attention to it, provide direction towards that
063through weekly and monthly uh updates and then the page itself will start to populate and live and breathe as a proactive live view of where we're what we're talking about. So because some people because that reset will be one of those things that we're going to want to talk about >> in set the context more. Why what do you mean reset? You know what is that? So you want to explain that to folks. Um, the other part is, you know, for Q1, you only have one pay cycle, maybe two to be to be included in Q1 because folks start in September, they get to get the second week. So, you only might only have one pay cycle in that in that Q1. So, we are we want to make sure people know that Katie and
064I and Lori Don are going through every single employee and triangulating that with the budget, with the payroll sheets, and staffing levels by school. So, we are starting from a good spot, but we'll be able to give you a better payroll number beyond Q2. I mean, beyond Q1. That's more about a lender because we need more pay cycles to make that work because that's already a complicated number to project as it is with stipens and coaching and things like that. So, um, we really want to be as transparent as we can about how we do this work and what we're doing as opposed to explaining it after someone has a question and and getting ahead of it like that. So, that's that's one of our financial goals this year communication being in front of as
065much stuff as we can. >> Appreciate that. >> Yeah. and and and um I we are so fortunate to have Steph O'Keefe who not only can do all that work and make sense of all that work but she sits and she has Katie and I talk about how we see it and then she puts it through the lens of a parent puts it through the lens of a community member puts it through the lens of what it would look like on the website. So the the the team that we we have in place to do that work I think will be beneicial to the to the town. We need to be hand in hand with the town know what we're doing, why we're doing it, and then give them space to give feedback on it
066through the meetings that we'll have. So there's, you know, get as many people involved as we can. >> Um, one recommendation for the resources on budget thing is the FAQ we put together last year. Great. There's a lot of stuff on there that probably is not actually board and very context specific. So I think we're all cleaning that up and re reutilizing it but a lot of the work we put into it answering general questions and then once also that's cleaned up maybe that's something the war committee >> uh other questions folks have on Q1 one I'm sorry Q4 report acknowledging we are time so I apologize >> thank you >> yeah thank you very much >> and we said this at earlier meetings but um the and this is to the whole school committee
067and to the town and the war committee and the subboard the ability for the town and schools and the governing folks to come up with a plan that closed a $2.5 million gap in February and have it be done [clears throat] um by early July is a quite an accomplishment. That was quite a hole to dig out of connected to the $4.5 million hole that the town had the schools had to take dig out of the prior year. We are really looking forward to level setting and starting in a more positive way from a financial planning perspective. And you know it's going to take a couple years to grow it and to win in the right direction. But we ought to full stop from going backwards and going negative and full stop on right sizing
068acknowledging actuals looking at expenses in a way that might be uh trying to hold those down and trying to put our revenue uh to places that impacts the classroom the most effective way possible and supports revolving accounts in order to keep that classroom protected as much as possible. So that's where we are. giving us the real appreciate. >> Oops. >> Um, old business things. Uh, we'll fly through just to give you all a quick update. I was able to meet with uh the new chair of the warrant committee uh Jay Fundling uh for an initial conversation on just like where we go uh chair ideas we talk about here of like coming up the war committee training at some point before we have our budget session just like thatformational overview of school budget process looks
069like what the you know income levers and expense levers are. Uh he was excited about that. Um, and so that is something we'll do. Um, I'll work with them on kind of schedule that Katie on on putting that on the books. Um, I think the Warren Committee and watching their meetings and hearing if they're looking to do something a little bit different and not have kind of a subcommittee that's still up in the air, but they might have more of a just target person to kind of get information rather than a like five or six. seems like something they're going through, although I don't know if that's 100% official. Uh, so that's something to let you know, but otherwise, um, uh, the townwide finance committee, we got that up, not everybody where that stands. So,
070we'll vote on that next. >> Yeah, I think the um, can't do it this week. August 20th. >> Yeah. >> Um, and then hopefully they will have gotten applications or you know some people submitting to be the town school committee representative that we would be right but I think if if there aren't applications we just vote on the how we're organized who the members are from school committee and then add >> is there a target kickoff date for that >> he's looking at Indian bond they will end the bondage beginning September we would have there's no we didn't get specific dates but I think it's also you know likely based on availability I mean some uh so that's the tri board stuff uh next meeting uh we're back to our two week cycle I believe
071so our next meeting right now is the 20th that morning um topics Is two weeks enough for the budget recast or should we wait to to wait till September for that? >> We probably should wait for September just because we're still in the process of hiring and kind ofizing. Okay. Um so I think September would give us a better um picture of >> so that would be like September third meeting >> right so then for the 20th we'll add all the things we didn't get to today uh in terms of the finance report structure too a little more potentially the grants anything else that folks want to try I would like to put on my 26 update. Um, as part of the work that Katie's doing for the reset in preparation for that that September
072meeting, uh, we collectively continue to be concerned about balance and circuit breaker only $8,000. >> Mhm. and the potential ramifications of that given the bearability of the um the line and its potential impact on uh on the budget itself. And again that that's a that's where all that all that we K has done an amazing job of right sizing the other lines of the budget to get them to represent actuals. Um and through a confluence of the money being spent out of certain break regular to cover previous fiscal years and money dedicated to the finance uh to the uh um revolving account. Uh it's not fiscally sound to start a school year with $8,000 in the circuit breaker account and zero dollars in spend all we account for. Um, so we're thinking that we need
073to look hard at other expenses that we may need to reduce in order to make the school year one that uh doesn't land us in the same spot in June of 26 as we've landed in June of 25 and as we've landed in June 24th. So that that may come with some suggestions and recommendations by myself uh that will be um uh um substantial recommendations in order to kind of create a budget that is sustainable for FY26. I know we've been talking about it by 27B the right the right sizing of the district for 27 28 29 moving forward >> but given the last two to three fiscal years of um challenges the the right the right setting of FY26 is the first spot we have to start at and that might include some hard
074decisions that we have to make that we want to include in that u that meeting in two weeks. Okay. >> Anything else? Do you anticipate that any of those decisions I don't know what requires a school committee vote um like if it's a certain percentage change to the budget or something maybe nothing um but just [clears throat] uh I'm don't need to answer this now John but like I'm wondering would any of this require vote this presentation of decisions >> it would be I think it should be a shared decision it should be definitely a consult I think the school committee needs to be on or in support of those decisions that will be >> that are being discussed right now with the leadership team and Katie and I and uh the other folks that
075are involved in this principles and central office. So it would be a presentation and it would definitely be a discussion whether or not to vote or not. A vote always helps, right? shows um collective urgency and collective solution um being solutions being put in place but I'm not sure about the exact quot I'm trying to think of whether it does or not. So it's a it's a change within the budget lines of the budget. So >> uh not every district has a a policy where school committee has to approve every line change. I think in Milton we may have thought we did transfer. >> So that's why I'm asking >> sense of urgency on making that decision. We want to be able to vote on it on the 20th >> so that you can do
076what you >> Yeah. The timing is going to be hard for these potential discussions to be implemented and executed. and looking at policy DBJ. That's a good question. Uh, great. All right. Anything else? I'll take the motion to adjurnn. >> Uh, second. >> Second. Uh, all in favor? >> Thank you. Returned. It's around Thank you.