001Okay. Good evening. Welcome to the June 30th school budget hearing. We'll call this meeting to order at 5:33 p.m. Please rise for the pledge of allegiance. >> Allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. >> Mr. Mr. Burrow, will you do roll call, please? >> Absolutely. Mr. Burrow here. Mr. Eard, >> here. >> Mr. Burns. Miss >> here. >> Mr. Wade >> here. Mr. Roarius. Miss Smith >> here. >> Thank you, Mr. >> No. >> Amen. >> Not very much. >> Okay. Yes. and the preparation and legal aspects of the budget are all told within the presentation and the resolutions. Um, so I am going to turn this over to uh Kathy Maryfield, our
002ad administrator of finance. Okay, we're going to um uh this presentation is on the fiscal year 2526 amended budget proposal and the fiscal year 2627 proposed budget. I wanted to um display our historical fund balance to see our growth uh over the last 10 years. Our budget goals um we we believe they are a numeric expression of our vision and priorities and those include sustainability, retention, finding our district sweet spot, attrition management and identifying challenges and impact or stress on the budget. uh regarding finding our district sweet spot that pertains to teacherto student ratio maintaining a healthy cash flow so there is no state aid note borrowing maintaining a healthy fund balance etc. Attrition management includes a workforce balance matching enrollment to staffing and identifying our challenges um which seem to be at the present
003time increased mental health needs, special education, discipline, substitute staff etc. In creating uh the the budget proposals, um we like to build on five budget pillars which include foundation allowance, pupil count enrollment, uh student enrollment, wage and wage increases, state retirement contributions, and our medical insurance increase. Uh we used um for foundation allowance an assumption uh for fiscal year 27 an increase of $250 per pupil to [snorts] uh a total of 10,300 for the pupil count. Um we are not estimating any change. We're using the same amount. Um and just to notify um the board that uh there is talk in the future of the state using a three-year blend for um estimating or for being paid on uh student membership. Uh wage increases uh are um proposed as contracts are negotiated as of June
00416th. Um and the AEA includes a step per contract language. state retirement contributions, the MYIPERS cap um went down slightly to 27.51% as last year was 29.91%. The UAL went down slightly to 13.51% which last year was 15.02%. However, our medical insurance increased. Um, we pay per PA 152 hard cap off at uh 5% increase. Fiscal year budget overview of assumptions. Um, we are assuming that our non-homestead millage will pass, which expires December 31st, 2026. And [snorts] that generates for us approximately $1.7 million that goes towards that per pupil foundation. So it is part of that per pupil foundation that we received. Um if the board chooses to propose a sinking fund that proposal if it passes will take the stress off maintenance andor our technology budget. The other budget assumptions are uh increased uh
005utilities. We use 25% water and sewer, 7% waste and trash, 10% general liability insurance, and 15% heating cost increase. Uh for our contract services, we do have contractual increases per year. And those [snorts] contracts include custodial HVAC maintenance, transportation, grounds maintenance, etc. We did however use a conservative revenue estimate as per enrollment blend and our P per pupil allowance. Um this is a snapshot of our fund balance as of June 30th uh which I like to remind everyone all the time that uh everything changes um almost daily and um they they sure do fluctuate. Um the good news is there's talk that the governor might sign the budget July 2nd, but we'll just have to wait and see. It'll be better than October 7th that it was last year. Um our 2425 actual June audited
006um financial gave us a fund balance as percentage over revenues of 15.35%. Our proposed fiscical year 26 budget amendment is coming in at 14.53%. And our proposed fiscal year 27 budget um lands us at 14.70%. More about our 2627 budget general assumptions. Our state aid membership blend we are not estimating a a a significant change. Um, so we left it at no change. We have our fall and our spring certified enrollment numbers. And again, um, a lot of us are looking forward to that possible three-year blend. Our foundation allowance, our actual, uh, for fiscal year 2526 was at 10,50 and this uh, fiscal year 2627 uh, the estimate that we used is 10,300. And the revenue funding assumptions are from all three um governing uh governor, house and senate are are in agreement on that.
007More budget uh general assumptions used um other cost increases such as substitution uh for staff, our health cap uh utilities cost and inflation. Our property and casualty again uh our insurance increased by 10%. It went from 137,000 a year to 150,000 a year. And then for revenue, we added a 4% increase in oper operating property tax collection. Um our wage assumptions used as per contract agreements as negotiated. We um we included a technology investment of $178,500 and a muchneeded Wi-Fi refresh of $82,000. We did estimate average 5% increases for eligible teachers and staff. I'd like to remind everyone that the budget includes estimates and projections. Actual results will vary. On the revenue side of the budget proposal, um we we can see a kind of flat line here. Our enrollment with future projection is based
008on kindergartens coming in and our seniors going out. Um we like to think of um keeping our kindergarteners as as they enter our district. Our revenue sources um are as follows. uh 87% of our revenue is from the state and um 10% from local and uh as you can see our federal revenue sources are are decreasing now that the co era is over more on revenue um we are our revenue for our fiscal year 2425 um actual audited was $18,360,300 27. We are proposing um an amended budget of 19,391,803. And for fiscal year 27, we are estimating 19,686,628. For the expense side of the budget, um we wanted to reflect that 61% of our expense allocation is in instruction, 38% is in support. And just a glimpse at our historical three-year uh expenditure comparison um
009with instruction closely remaining the same at a negative.27% two 7%. Support increase of 3.41%. Um, and then community services down a little bit by 10%. Um, outgoing transfers and other uh 18% for a total of uh 1.11%. So that just kind of shows you that we're we're kind of uh staying on trend. So if anyone has any questions can do my best to answer them. [snorts] Um, sorry. The if you go back to your revenue slide, one more. Um, I was looking at the spreadsheet. How does you projected out 26 and 27 um year-over-year increases in revenue? How does that look in terms of like a line graph or something like that? I'm trying to see if there's a trend there for constant if it's decreasing. >> Yeah. Um, a lot of it is based
010on um the changes in enrollment and then the changes in our per pupil foundation. So even though enrollment is slightly going down, the per pupil foundation is increasing and it's kind of looking steady. Um, and almost every district in the state is experiencing the exact same thing. um you know, declining enrollment, declining birth rates. So, I I think the state, you know, maybe they they kind of are making up for that um so that we can continue our our business here and and educate the children. And um >> you're welcome. Any questions or comments from the public? >> Mr. Bowen, >> just couple questions going through the budget. Um it just seemed odd to me that primary for example that basic program the um it's only going up by $50,000 cost but yet wages have
011gone up and insurance and so on and so forth. This seems like unless last year was way high. I don't know if that's true or not, but this seems odd that they're not making any staffing changes or the primary, but yet it's not going up very administration going down. That's the lowest it's been since uh 23. It just seems odd that you know salaries are are continuing to rise but yet our budget year is going down. And then the big one that I know is high school over $100,000 in school administration. I really haven't heard of any any cuts in high school administration. I'm just curious why $100,000. And then the uh the last one is transportation. It just is everything the same. I'm sure does over the contract and I don't know if that's
012why it is seems to stay the same [snorts] question that are and also internet that is Yes, it is. >> It just it just one question that Would anybody else in the audience like to hear question? This is a public hearing not a public hearing. You want to address what you said? >> Sure. Um for high school administration, we had a number of um staff take uh cash in lie of health insurance. So that significantly reduced um the cost for high school administration. um >> for next year. >> We you know we're we're estimating what we know based off today. So um and then also let's see um we do have um some split salaries that aren't all in high school as where they used to be. We have several people in different departments. Um
013for our athletic director, for example, he's not all paid out of high school. He's, you know, paid out of athletics as well. And we have several people that are split in that category. They don't just work for the high school, but they work for other [clears throat] >> um let's see what other um for elementary um we had u increases in our title funding. So that alleviates some of the general fund cost for elementary um because we're able to utilize those title funds now for some of the students for some of the needs. [snorts] >> Yes. >> But it offsets what we used to spend in elementary costs. Um let's see what else. My one big questions that was that anything I know accept that are you going to be accepting money >> that's up
014for discussion >> I would recommend and uh new superintendent coming in with the board of education to review that update. moment. >> I I mean I can answer the transportation um expense going up is we have several buses now with special ed children and um it is required that attendance be on those buses as well. Um so that's an add a very much added cost and we're under contract I believe it's 3.5% increase each year [snorts] and they are um you know increasing uh their fuel search charge on the buses at the moment um to see >> because We're in a consortium for special education and we're reimbursed by the consortium for those special ed costs. >> Well, everything is is booked in transportation and then it's offset by funds we get for the transportation
015for special education. So >> yes I mean >> right I mean that's how how we treat it is >> excuse me >> I said normally or anything else and then expenses for people that they don't reduce the expense. Thank you. [clears throat] M >> Smith, >> I move the board of education a special meeting June 30th. >> Mr. I move the board of education and the special meeting June 30th at 5:30 meeting at 5:54 p.m. >> Motion to support. Any discussion? All in favor? Any opposed? Motion carries.