001Brian, you doing all right? I'm hanging in there. Yeah. How's everyone doing? Doing all right. Good. So, we have um I haven't seen Margaret, but she may be late. She didn't respond whether she's going to be able to make it or not. Um and then we have two board members on so but we can get started. I mean it's 301 so Okay. So I'm just pulling up the budget. Okay. So let me start with I'm almost done with the budget meeting. I almost have everything balanced, everything kind of zeroed out. Awards are trickling in every day for federal funds and I'm having to go back and just kind of fix things. And then I'll also start with I know the last time we met I probably sounded more doom and gloom and I apologize for
002that. And as I kept making progress on the budget, things started to look better and better. So the numbers that I'm going to kind of talk about today I think are like worst case scenario and I would envision that before the board meeting on Monday it's only going to get better from what I'm talking about today if that makes sense. Um, just to kind of explain what I mean by that is as I'm going fund by fund, I'm identifying like, oh, I have $10,000 available budget in this federal fund. And then I'm looking at operational and I'm saying, oh wait, this can be coded to that. you know, so I'm kind of identifying things like that and I'm moving um things to best utilize our federal funds and at the same time give us uh
003cash balance and our operational. So I think the biggest things that I'll say is everything that I talked about at the last board meeting is built into the budget. the new minimums, the 55,000, 65,000, 75 for our teachers, the principal increases. I'm doing 4% across the board as far as raises go. I've dropped in the increases in our Nimia risk insurance. I've dropped in our benefit increases. I probably have too many vacancies, which I'm going to meet with Dr. Lucas about because I think I have some stuff that's maybe extra that I need to take out based off of positions. Um, and that's where I'm getting at that I think things are only going to get better. The one thing that, you know, almost kind of surprised me. I called Dr. Lucas about this. I
004don't even remember if it was this morning or yesterday, but we have prepared for this year, meaning that we've saved up a lot of cash. And um you know I don't want to sound like overly optimistic but what I do project us finishing FY25 this year so June 30th I show us ending the year with about 2.9 million in cash carryover um which is is very healthy uh very good taking into account all the increases and everything that we're talking about I am projecting that we will have to use about 1.5 million of that 2.9 to balance FY26's budget. Um, that number I expect to come down as I'm cleaning up things. So, that's where I want to be uh transparent and that I feel like that that's like worst case scenario. So, we're able
005to cover all of the increases and do everything that we need to do um with utilizing 1.5 million of that 2.9 cash and leaving us with 1.4 millionish cash next year FY26. So, as far as next year is concerned, I feel good that we're okay. But I think the biggest thing uh that I would want to communicate is this is just something we're going to have to watch throughout the year because it's not sustainable to use 1.5 million of cash every year. So Dr. Lucas and I and Ryan will definitely have to watch the budget closely next year, identify areas that we can cut that maybe we can pull back on spending if we can. I feel like we're already pretty lean to be honest because that's how we were able to build up such
006a large cash balance. Um but as we have had kind of experienced a decrease in enrollment that's kind of hurt us on the revenue side. Um you know so all that to be said that I feel good. I think the last time I met I was maybe like kind of down and depressed and I was sad and but now I feel better. Um, and I feel like we're good for sure for next year, maybe even FY27, but it is something that to be kind of like flashing a red light that I feel like we just need to be aware of, be on the same page. And if this continues, meaning we continue to receive mandated increases and not getting funded for it, eventually it's going to come to a point where more difficult decisions will
007have to be made, but we're not there yet. So, you know, I I didn't have time to put together the full packet. I talked to Dr. Lucas and I will have everything completed and put together for our meeting on Monday, but I did want to have that big picture discussion with everyone so that we're all on the same page. And so, um, most schools, I think, typically keep about 5% of their operational revenue as cash. We're well above that. So, and we'll finish next year above that as well. So, you know, there's nothing that I'm overly concerned about, but you know, it's just like I said, we just got to keep an eye on. So, that's the main thing I wanted to communicate. Now, there's nothing special built into the budget as far as anything
008that's out of the ordinary. you know, for next year's expenditures, I'm kind of estimating that we'll spend roughly about the same, if not a little bit more, uh, just because everything keeps increasing in prices. So, that's kind of built into the budget. Uh, personnel make up the majority of our expenditures. There's no significant transactions or anything that I'm putting into there, at least not right now. um you know, capital outlay and bonds, you know, uh I show us going into next year with about 400,000 of cash reserves and capital outlay. I show us going into next year with about 40,000 left in our bond fund. I believe the intention is that we'll go out for bonds in the fall in November. So that will help. So I mean I think we have and that those
009numbers are not included in the 2.9 that I'm talking about that's just operational. So we have you know roughly 450,000 450,000 of cash in our capital outlay to cover any emergency repairs and maintenance. [Music] Um any questions? I know that's a lot of inflow and and the numbers will get better, you know, because we we have a couple of positions this year that we probably will not fill. So, that will help with some a little bit. I mean, not a not a whole lot, but it'll help some. And every time we lose somebody, we'll have to just look at it and see if we really need to fill that position or we can get by without it. Yeah, positions by far add up the fastest. And so, you know, salary plus benefits adds up very
010quickly. So, I agree with what Dr. Lucas just said. If someone leaves, we'll just have to really evaluate if we need to backfill that position. And if it's a position that we can do without, that just adds to our available budget uh for FY27. Yeah. And then hopefully PED will for FY27 give us a little more money than they did this year. Hopefully. Yeah. out of all the schools, this is this is the one school where I feel like really good about other schools that I'm working with, they're um they're on the cusp of having to riff and so I think we're looking pretty good to be honest, especially with the other districts I work with. Good. I don't know. Any other input? I know Margaret, you kind of caught on late, but is it
011Joanie? Johnny, Joanie, Joanie, and Amy. I mean, anything any input on you guys? What do you think? Oh, I just want to thank you. I know it's been stressful for you. Yeah, I probably you think I would have lost more weight, but yeah, I just say kudos to the school for doing such a good good job managing that you have that little bit of of cushion to, you know, move forward because that's kind of what's carrying you through for the most part, right? That'll get us through two years, I'm sure. But after that, yeah. Yeah. Hopefully things will get straightened out by then. Right. And it seems to since I've been here, it seems to have kind of been up and down. You know, it's like one year we'll have really good and the funds
012are good and the next year they don't fund everything they should. Yeah. So, I'll have together the full packet for Monday. I'll show breakouts of how much is being spent on instructions. Like all that will be in there, our normal presentation. Um, but you know, once I saw how much cash we were having, it made me feel way better. Um, because not every school is as fortunate to have kind of prepared for this as as we have been at Msburg. So, yeah, but it is it is it's a temporary fix, right? So, it's not sustainable, right? Yeah. Anything you want to add, Dr. Lucas? No, just thanks everybody. And like I said, well, you know, Monday at the board meeting, we'll have a full presentation and it'll be numbers and charts and all that stuff.
013But, um, and hopefully it'll be a little better news Monday. I mean, I'm hoping it will. This is worth as we flesh out some of the budget. Yeah. Yeah, it will be better for sure. And I think we'll just watch the budget really closely let next year. I mean, even though we'll still have a healthy cash at the end of next year, you know, I think we just watch it throughout the year. Yep. That's all I really wanted to cover. I wanted, you know, these meetings are really more just to kind of get any feedback or input. Um, but there's nothing unusual in there. It's really kind of just the bare necessities and what we typically spend. And I think that the district does a pretty good job of not wasteful spending to be honest.
014So, I think we're good. All righty. Thank you, Brian. Sure. Short and sweet. I'll see you guys on Monday. Okay. Okay. See you Monday. Okay. Thank you all. Thank you very much. Thank you. Bye-bye.