001good evening and Welcome to our March 11 budget work session well hello again welcome uh this is our third budget Workshop it is our last budget Workshop uh this will be the last time we meet at 6 o' the rest of our business will take place during a regular session tonight you're going to hear from um uh starting out is myself talking about Central administrative budget we're then going to transition to support services and we're going to conclude with uh our undistributed funds before I start I just want to remind everyone that the very beginning of this process uh we we started with our district planning team and this year was unusual as we looked at our budget guidelines knowing that as we entered the year we were going to be looking at a a
002year where there was a deficit should we want to remain um within the tax cap and simply put um we had more money going out than coming in uh we um as a response to that we pulled together our advocacy team uh and then we put together a uh video uh Mike and I created a video together with the help of Nancy that video went through all nine buildings it was housed on our website kind of explaining why we have a deficit this year uh it was also our call to action for advocate and through that um we um had a writing campaign a phone call campaign uh to local and state targeted legislators especially um those that are involved in the education budget we had a special thanks to Emily and Sarah for uh
003taking a day trip up and back to Albany Monro County School boards for taking an up and back trip to Albany to also uh support our advocacy in our advocacy um you never quite know if it's because of our advocacy or um because of something else but um we received this year what we were advocating for uh which was approximately just over $600,000 in uh Foundation Aid the year before we received $10,000 uh so um we are back to the point where we felt was the bare minimum that would be okay for us and all that work um I I I can't thank our stakeholders enough for participating in from our parents to our teachers to our PA professionals to all of our staff within our buildings to our Board of Education to our parents
004in our community uh so that helped a lot um so that $600,000 we weren't anticipating but still we were uh short uh well over uh $1.5 million and from there we went through a process with the district planning team which continues to look at how we're going to to find those reductions in the budget in our district planning team as we developed our budget guidelines we talked about the importance of uh keeping any budget reductions as furthest away from the students uh so you'll see some of those within my budget I know that we're at about the $600,000 mark right now uh so we're still working through um that last piece of uh budget reductions before um uh before May so welcome uh and thank you and here is the central administrative budget uh the
005main components are the Board of Education uh my office Human Resources office which you'll also see on here referenced as Personnel Services and our Communications office which will also be referenced as public information our budget um represents 93% of our operating expense uh the county average is 1.24% and we are the fifth lowest in Monro County as it relates to Central Administration which is a good place to be Pro the bottom third probably here it is in um graph form as far as where we've been uh Over The Last 5 Years uh We've restructured quite a bit um we've had a quite a bit of focus around our um goals and strategic initiatives as as it should be um also annually we see um new and different uh New York state and federal mandates dates
006and as we look across the district we have many new faces and so a lot of our time and efforts have been spent on uh recruiting and planning and and looking at our our future within this budget you'll see a decrease of 2.59% or $4,270 with a 5-year annual average increase of 4.62% uh another way to look at how this is how this breaks down U by area within the central administrative Staffing um we have uh 3.5 people last year in my office uh now we have three so it's myself uh it's Deb who also serves as the board Clerk and it's Cindy Coleman uh we um have reduced that 3.5 to three as part of the succession planning uh dropping our former ASI off of my budget line to help support um our administr
007our our elementary administrators last year human resource is flat and also as part of our restructuring and budget reductions you'll see our public information uh FTE down uh 1.0 um which uh uh Nancy and Lori have taken on quite an additional load with that so regarding the Board of Education you can see on the the right sampling of of what they do um what's within what's in our budget uh we have um done a lot of work over the course of the last few years around our Mission Vision Values our strategic initiative and advocacy but the amount of time that they also spend um uh weekly um several times a month um multiple times a month uh at Monroe County School Board Association meetings and conferences um and any um professional development associated with with
008being a a board of education member uh this uh represents a pretty flat year-to-year budget we are the third lowest per student cost in the county with our Board of Education uh which is $7 compared to 1338 so thank you all for that work within the office again um we have quite a bit of turnover so we've done a lot of work uh relative to culture um a lot of work regrounding in our Mission Vision Values making sure we all we do is embedded within a uh supportive environment for all uh students staff parents a welcoming environment we've done a ton with Safety and Security uh we try our best to engage community members and families um with our um quarterly Power hours uh We've um we will continue um our Endeavor of of reviewing
009uh multiple policies uh on an annual basis and tonight I will uh in my superintendence um summary at the end I'll U be discussing a new policy that we'll be talk about but again um I really appreciate the the the work of of everyone our negotiations are very different from other districts uh we um have a board member attend um some of our negotiations uh we do not have attorneys attend our negotiations we do a collaboratively uh we have a lot to do this year and into the future relative to Capital project management uh and we'll be uh even talking about uh potential for another Capital project which might sound crazy but it makes a lot of sense if you give us time to explain that uh and then of course with all of the
010new administrators we have we have additional um supports that we're giving them um because the heart of from my perspective the heart of our district is at the building level uh which is really our building principles and our assistant principles um and no disregard to the people in our central office team that are staring at me right now uh planning for next year um a lot of this i' I I've shared but we will continue with more succession planning uh all of our professional collaboration will be on student learning a lot of exciting things that you heard from Heather's office relative to math and Ela um and best practices and benchmarking and um we have high high hopes for a highest level of student engagement and rigor uh moving forward in those areas uh we
011also have um not only our strategic initiative that we're working on in our Capital project uh but we have partnered with parents um with along with a district planning team around um Su sustainable practices uh reviewing where we stand with electric buses what can we do with composting um what can we do to um help support uh um a better environment for all within my office you also have already heard uh we have three FTE myself uh into admin support/ clerical uh this area has decreased 11.86% um we are the seventh lowest uh per student in the county uh at $78 compared to the average of 73 uh a lot of this is redundant you heard this from Sean at our last Workshop Human Resources uh the increase is really um uh due to just
012the the normal uh carryover from salary and benefits uh it's still at 5 FTE it was 5 FTE before and say similarly with the public uh information office um we have two of the same people um but we uh decreased one person um through our budget process uh can't than um n's office enough for the work that comes out of there um the amount of accolades we get Statewide and and nationally for recognition of um our newsletters our brochures our district calendar um we just went together along with our uh C uh to look at a different mass communication system another um panic button system uh to continue to be on the um uh the best and um most reliable system for um alerting uh people in the event of an emergency board of education
013and Central Administration my final uh summary slide uh breaks down as follows uh 31% uh is the superintendent's office uh 39.9% breaks down to HR and then we have the Board of Education sitting at 6.3% and uh public information at 22.4% so at this time uh would like to open it up to any questions you may have okay it's not a bad thing all right thank you everyone uh next I'd like to welcome up uh Heather Clayton our assistant superintendent for instruction good evening everyone thanks for having me again um just thanks again to our finance office for the support in preparing this to share with you this evening I have the pleasure of sharing our building based budgets um with all of you you're not going to see um a significant change at all
014with our building budgets this is the heart of our work this is where all the magic happens so all of the things that you see on the left side of the slide are funded um through our building budgets and overall we have a 64.5 million budget for next year which is um a0 4% increase over last year here you can see our building budgets in totality and then on the next slide you see a breakdown um high school middle school and Elementary School and to have a different view this is our per pupil uh Middle School and High School you will see our more because they include our Athletics and our co-curricular activities which are a lot more robust when you get into grades 6 through 12 um I just want to highlight to with
015Athletics I was reviewing the fall winter and spring reports from the 2023 2024 season and we had 50 teams that were competitive over the three um season and it was really exciting to see all the accolades for our student athletes so I just wanted to give a shout out to them when you look at how our building budgets break out 94% of it falls into our staffing of our certificated non-certificated staff with the remaining 6% um towards some of our Athletics costs our bosies um technology education program our instructional materials and our discretionary spending in the buildings so our building Lev level Staffing most of it isn't encompassed in our building based budgets there are a few positions that are funded through our student services department or special ed Department some Grant funded positions but
016the majority of them are funded through our building budgets um our career in technical education this is our EMCC program we have many students with an interest in our EMCC program and if they complete it successfully they could end with a um professional certification and a paying job or entrance into a two or a four-year school and we see our students doing a combination of all of those for our building instructional materials these are our things um that are based on our per pupil allocation that we do get aid for so textbooks library books Hardware and software you'll see that's remained um pretty constant from last year and then the discretionary budget is the per pupil allocation that our principes receive to cover all of the other stuff so when they get their budgets to
017build they get a lump sum and they um distribute that into the codes where it is needed in their buildings depending on wish list from their faculty initiatives they have going on anticipated costs and things moving into the following School year again um our Revenue sources are our property tax levy our Bose's Aid and our New York State instructional materials Aid that we receive for our textbooks library books computer hardware software and um we do share that with our non-public and parochial schools also our title grants serve as some funding for our buildings um just to wrap up with some celebrations so we've continued our focus on authentic and rigorous learning opportunities for our students our work with our strategic initiative and all of our work around relationships in a welcoming and affirming environment has
018very much continued um we're doing a lot of work around the vertical alignment of our essential standards and that's something that's happening k12 and looking at how we're best utilizing our human resources and our existing instructional resources along with EXP exploring those new opportunities um to further enhance learning for our students also that increased use of instructional technology with our onetoone initiative and other things we see our teachers creatively doing in the classrooms looking ahead um just that continued focus on meeting the needs of our students with that wide range of academic social emotional and behavioral skills within each classroom really trying to identify where there may be skill deficits in having targeted interventions to support the Student Success that integration of the New York state seal benchmarks within our academic work and continuing to
019ensure we have Equitable Equitable access for rigorous learning opportunities for our students from a budgetary perspective some of the challenges we continue to face are Staffing shortages we've seen across a multitude of areas you can name the area we've probably seen it that results in some hardship on our buildings and um a shout out to our principles who have been very creative about their use of um Human Resources within the building on a day-to-day operational sense they very much have to shift people around to cover where there may be shortages or openings and they've gotten unfortunately very but very good at it um but it is a challenge every day when we have positions that go unfilled the complexity of our student needs um continue to be something that is a challenge and we are
020Relentless in our pursuit to find the best um resources and interventions to support all of our kids and then just the increasing costs that we see overall for professional development and instructional resources and just in summary in this final slide you'll see um our adopted budget from 2425 and then the changes proposed for 20 526 with an overall increase of 4% so with that any questions thank you okay great uh kickoff to tonight it's always uh a pleasure to uh uh present the support services budget um we take great pride in transporting our students to school and making sure our school is a safe clean environment and um the Food Service budget while separate and not part of the general fund budget obviously we take great pride in in feeding our students every day so
021it's always a pleasure to uh uh to go through the support services budget I want to give another shout out to uh Terry our budget director he's done an outstanding job uh preparing the data behind the scenes um he's looked to make some efficiencies and obviously Rachel our treasure uh is right there in supporting the data and then um uh our business office assistant Nancy does a tremendous job of putting all this together and keeping track of of all the changes so uh it's a team effort um but essentially the support services uh overview tonight obviously I'm responsible for those operations we've got 219 FTE that we'll review um encompasses um some of the operations I've mentioned but also the finance and business office and auditing operation um and um and some overlap uh with
022uh some of the technology uh infrastructure discussions that we have too especially the bosies budget that I'll I'll mention tonight so the support staff's budget probably 20 million or 12% of the total budget and 12.9% of the Staffing um it's interesting because we talk about in the support staff operations we try to look back at the accountability aspects um you know whether it's um water testing uh safety inspections audits um you know there's a lot that's going on uh our office is audited at least two separate uh times a year uh with with uh could be three different agencies but right now it's been two uh but there's a lot going on including um all of the State uh education department requirements um for um state aid and and uh our budgets in general so
023there's a lot going on in terms of accountability standpoint there's a lot of work behind the scenes that take place uh and I mentioned these Financial reports as well we're still doing a federal uh report through the state uh on financial transparency the biggest challenge that we've had and you'll see throughout the discussion is we're continually short staffed in transportation and custodial maintenance and um Sean and Orlando do a tremendous job it's just the market um but we are seeing some turnaround uh had over 40 applicants for the assistant food service director position so there's we're starting to see that turnaround and I'm hoping that that labor market for some of these positions is going to start to turn um so that we can um you know get our folks back um in terms of
024the data so in my former life I worked for forecast 5 where this data comes from it's it's now owned by Frontline um and I'm able to pull a comparative data just keep in mind that the data is lagged by 12 months so in some of the data and that's just because that's when it becomes readily available from State Ed so for example when we look at the communications comparative data I anticipate there's going to be a decrease right because that change isn't reflected on that current database until next year so it is lagged a year but we still like to use it as a benchmark you know to see how to see how our spending Compares and you can see that we're the lowest spending in Ro county is a percent of operating expense
025and support staff services so we're a very efficient operation um again and I think you know you you look at that efficiency and and then look at quality so I don't think you know I think there's a a you know there's an efficient Factor that's not impacting that quality what does impact us a little a little bit right now is that Staffing shortage so if you just look at overall the trend it's flat and when this budget comes together um you know I'm sure you couldn't help to notice you know Heather's presentation in terms of how flat the building budgets are we see that in support staff services too uh when we get to the undistributed budget tonight that'll tell the story as to why we've had to manage our expenses um you know we're
026very happy with our advocacy uh efforts in state aid but we've had to manage our expenses so it's it's been a difficult budget year we've had to make tough decisions and prioritize and mostly try to keep all of these other operations flat uh to take care of the undistributed um budget which we'll get to later so you're going to see this is just by this is uh just by component and then by object and you know as mentioned earlier the majority of our budget uh our salaries in this case we also look at the contract and utilities uh for the uh you know for energy is really our biggest uh amount that we look at ftes are flat and again they're not completely filled so um our actual expenditures are going to differ from what
027our budget is right in terms of generating some fund balance because we don't have all these positions that are filled um but in an ideal world for what we need from an operational standpoint uh we would have that 219 uh FTE so just to touch briefly on some of these categories I'm going to go through every slide I know every year when you look at the number of slides in the support staff presentation you think wow how are we going to get through that I'm not going to go through everyone I'll just I'll just go through some highlights on the slides certainly available for U you know followup questions uh uh later but again when you look at uh the accounting and financial reporting of almost 200 million in total uh the purchase orders dispersements
028um and in par in particular if you look at the number of paychecks uh that we issue uh along with the volume of our accounts payable operation it's a pretty significant operation I mean picture $161 million company and operation you know with uh with the number of employees that we have um there's a lot going on in the business office um every day um I I would say that the uh the biggest aspect uh of what we do from an accounting and oversight standpoint and not because we live in a fear-based environment but because we we strive to do the best thing the right thing is we know that every five years there's going to be a New York state com controller audit so we have to communicate sometimes tough messages about what's purchased right
029and our your claims auditor the claims auditor that works directly for the Board of Education reviews every single expense that goes out um I represent the district on our um health insurance boards in fact I just came uh from both of those meetings and have updated information uh for a presentation later on and we spend quite a bit of time talking about reserve and fund balance management as our you know as part of our operation so overall we're looking at a decrease in the finance and audit budget of U $111,000 we the seventh lowest cost per student in the county 197 compared to 220 just for comparison sake so we've held the line uh in terms of our staffing and efficiencies in this operation we continue to get favorable audits with very few findings um
030I think we do a really good job at managing fund balance we've got Terry's already got a good fund balance projection at this point of the year you know so when we come back to the board with a with a proposed budget the superintendent's proposed budget we know what the end of the year looks like right now in terms of our financial condition we've done a tremendous job of enhancing our windcap web services that starts I got to go back two years where we put that online as a major accomplishment and now Terry and Rachel are taking to the next step where we're trying to get our attendance off of paper and fully automated and we've done a really good job so far this year we're looking at automating the accounts payable operation uh through
031electronic documents to cut down on paper um we're looking at ways to reduce the number of time sheets that are filled out manually especially with regard to our chaperon um you know in the athletic events I know we we tried a little bit with professional development had a little hiccup and and we're working through it so we're really working hard to uh to automate uh the business office and and while we're doing that we keep the highest Bond rating with recommendations uh of the Board of Education and audit committee uh in terms of our fund balance and reserves which you know is what they look at from a financial strength uh position uh our challenges is you know we're constantly we struggle with Staffing and I'd say with cross training and that's really been a
032goal and and we're working working hard at it but we've got a long way to go but uh you know continual Pro uh progress and then you know we deal with wage inflation and um and obviously the challenges that Mr P have already mentioned in terms of state aid projections so operations in maintenance and security at a glance I love I I I love looking at this 204 acres of land it's a big operation out there you know especially when you're short staffed when you look at the square feet that we have the buildings the structures the two large stadiums this is a huge operation comparatively from uh District you know from a School District Operations perspective uh and Jeff and his team do a tremendous job Dan fersman uh do really a tremendous job
033uh especially under again these challenging conditions with being short staffed so you can see the number of uh positions you know right now we're trying to provide sort uh support for all of what's going to impact the capital project operations at mend in uh in here uh in terms of cleaning things out and getting closets ready and and uh you know the the pool area turned into a storage area so so we're in the process of determining how many desks we need for testing and and they do a lot of advanced coordination that typically doesn't exist when there's not a project and then they keep up with everything else while they're at it 2600 work orders through an automated uh work order system so they they try to keep up as as best they can
034and then Jeff does a great job in terms of collaboration with uh our town and Village officials uh and he's got if he needs any help um you know they're right there to support it so tremendous support from uh from the town and Village his budget has decreased and what we had to do and again when we look at all these budgets you're going to see this theme we've had to squeeze the budget for any excess that I found in the budget we had to squeeze the budget to get it balanced this year so in anticipation of some utility savings based on their energy performance contract uh that was approved and just you know some good trends that that we've seen uh previously with our Cooperative bidding we were able to make some reductions uh
035with that budget um always a concern for me to come and stand in front of the Board of Education from a fiscal standpoint to make reductions in this area because as you all know that can turn very quickly uh depending on uh different conditions so we we were able to squeeze it's the third lowest cost uh in the county um at 1420 per student compared to 1467 admin Technology support you know it's something Mr impero and I have talked about in terms of making even our budget presentations a little more efficient so Matt did a great job at the last Workshop talking about this I'm going to just you know look at I'm going to present it from uh an overall perspective from a finance standpoint we've got a one toone device program now we've
036got a right so 5500 roughly 5,500 devices we have to have a long-term plan to replace those in order to keep that up we have to have professional development that's in place we have to make sure the hardware works when you turn it on it works especially um in the classroom environment uh where you know if it takes you 20 minutes to just get everyone locked on you're in trouble right so we need to keep um modernizing our equipment so when we look at the replacement plan you know that's a big big commitment that we've now entered into and need to continue down the road behind that equipment are wireless access points our switches right um we're trying to get away from servers and and do more work in the cloud but we have to
037have the speed to do that so it's really important that we keep up with that plan and again Matt did a great job um covered with that detail but the main component or drivers uh to help us to help assist us is bosies we rely on uh our local bosies to uh coordinate some of these Services we do all of our purchasing through bosis which then drives Bose Aid back on the on on the district so it's advantageous for us to do that last year we shifted from the model where we relied on fund balance at the year end right so mat would come to me this time of year and say how much money do I have to spend we shifted that model and we increased it right in the budget so that way
038our Bose's Aid reimbursement uh is more predictable right we're still going to spend money at the yearn based on what we need and Matt always has a prioritized list uh but those all of those funds will go through bosies which drives the aid in the following year well over the next two years but you know that's how we budget it so so I tried to summarize I took Matt slide and I I changed it around a little bit right so the beginning balance are our this is our current Reserve money this is what we have in savings you can see how what our plan is to spend that down and then along the way we've got to replenish it right so right now we just have a spend down plan we've got two reserves one
039that was created in 14 we got to spend that first so you can see the goal is to have that spent down by 2728 and then the new one that we that the voters authorized last year you can see the balance that we have in it that should remain pretty stable while we spend one down and then we'll start to spend that down and again what I'll tell you is that uh you know I loved Matt's presentation but when you look at our onetoone replacement plan I have concerns to the tune of about another half a million per year in terms of that replacement plan obviously this year we're being very conservative but it's something that we've got to continue to look at from a long-term Financial persp perspective so I think this kind of
040shows you what our plan is again cautious you know cautiously in terms of the spend down and the plan out in the future and that's why we have the star to say as we approach two years down the road three years down the road we've got to have a mechanism to replenish that so one of the um major aspects of what's being voted on is uh the spending of 500,000 out of that technology reserve for the replacement of one to devices so that's uh and there's no impact uh on the tax levy because we're just going to use the money right from that savings account so that'll be one of the things that our voters are you know our stakeholders coming in to vote on uh you know in that third Tuesday in May Transportation
041um really continues to be a challenge overall because of the bus driver shortage and we've briefed uh planning team on a long-term plan um we've already had what we call the transportation Summit midy year to talk about some strategies that we have but if you look at our the size of our operation and responsibility um and then consider that we're short staffed to about seven to 10 drivers on a daily basis it's amazing uh that we're able to do what we do and um Carla and her staff really work hard under difficult circumstances you know to make everything work every day so this is a big operation when you look at the number of bus routes and students and Miles traveled on an annual basis and then when you look at the budget and you
042and we look comparatively we'll get to that slide we spend the fewest do one of one of the lowest spending districts uh in the area in transportation um and again we're flat my concern with this budget is as you look at the uh the contractual line you can see where we've had to rely on um contract Transportation uh and we would prefer to use the buses that we have here inhouse with our drivers to provide that so when I got here three or four contract bus routes and now we're up to 789 um depending on what comes on if we have to add anything new it's got to be contract Transportation so we're going to continue to see uh a challenge in this area again Shawn and his team have done a tremendous job uh
043from a recruiting standpoint Nancy um Wayman has assisted we've got a bus out with signs she's got new signs from a communication standpoint but that's an area that we need to continue to work on it's not the financial aspect because remember for every dollar we spend in transportation we get about 68 cents back right so it's not that it's just in general we still see a a labor shortage one of the things that's difficult you know if you're a parent you have your bus route cancelled you say well why Pittsburgh and then you say well it's only Pittsburgh not true this is this continues to to be a region-wide Statewide problem uh where it's challenging to to recruit uh folks to come and drive a bus um especially now that it's turned into a full-time
044position so I can assure you um with Mr perl's leadership our conversations with our transportation Summit we continue as an administrative team to throw as many resources as we can uh uh so that we don't have those cancellations uh on a daily basis and you can see from an efficiency standpoint where the second lowest per student cost uh which is good on one hand but I'd feel much better about that if we didn't have any cancellations um you know week by week so that's something we're going to continue to to look at so again great you know Aaron buns and his team and and car and her staff do a great job they've got a great uh New York State Department of Transportation rating which is the safety of our buses um our buses are
045audited worse than uh a New York state com controller audit to be honest with you every aspect of a bus is reviewed and you see that in the bus replacement plan uh but uh we have um knock on wood very few accidents uh and really uh good efficiency ratings um and the things that we are challenged by we'd like to do more for our Athletics we'd like to do more in terms of the time for field trips right those field trips are confined uh to uh to you know like 9 915 to 1 you know 30 because we've got to get every available driver back we'd love to do more there we need staff to provide that service um and again knock on wood fuel costs have been fluctuating but but mostly stable so that
046is a lead in to the bus replacement plan which I'll summarize very briefly um but I'll pause there there's a lot of information any questions about support staff at this point questions all right so again another thing that we vote on is the bus replacement plan right and I'm not going to go through every PowerPoint you know slide here but there's a we have a comprehensive bus replacement plan and we've worked to to lower it from 10 years to 9 years to really eight years uh the biggest aspect of our bus replacement plan quite honestly was we've got a electric bus study uh that's 90% complete they've done a great job job under changing conditions um from nerta in terms of the requirements that go into the report I actually had a conference call last
047week uh with one of the last major components and we have a plan through 2035 for electric buses I think the main question you know um that everyone may have is why aren't we going to vote on an electric bus this year and the truth was we considered voting on electric bus this year but when you consider what we're hearing in Albany uh during our legislative breakfast during my visit to Albany uh it's both sides of the aisle uh Sarah provided us with a letter from uh our local uh our national leaders uh from the state and the the feeling very much is that the timeline needs to be extended now nothing official yet uh that I'm aware of but after additional discussion we felt it was prudent to hold off a year on the
048electric buses we have a plan uh if everything aligns will be asking the community to vote on electric buses next year but this year we felt it was uh really important um to just go through and um you know replace uh the um 14 buses 866 passenger and 636 passenger buses to the tune of about 2.4 million um that's higher than where we have been uh uh two years ago and even um a couple hundred thousand higher than last year um again we're very blessed that we have $9 million in reserves for TR for our bus replacement plan we don't ask uh our taxpayers to pay more uh on the levy to support our bus replacement plan we use our savings account to do it we've had a continued Focus to increase that savings account
049to pay for um the cost of electric buses in that replacement plan so again depending on the timeline what we hear from State uh and local officials um and pending additional guidance we put the brakes on it but we're prepared to move forward we have money uh in our savings account to move forward we're in a very positive situation um you know as we go forward so but this year uh 14 buses uh gas and Diesel buses uh and then we'll go from there uh the presid presentation you know that you have available to you talks about all of the reasons why we we do what we do and our and and and our plan and essentially I'll just you know make one additional comment think about your vehicle and especially after this winter uh
050in terms of uh rust and corrosion based on salt well in this case it may have not been as bad because we had the rock salt shortage at one point but uh but think about how much has been put out this year compared to the last two years that corrosion leads to the biggest problem that we have with our school buses on the road which is why we have that aggressive replacement plan each one of those members underneath that um that bus if if the dot inspector goes like this and it breaks off or anything is flimsy then that bus has got to be replaced so or taken off line and repaired um so we really you know take pride in that 99.24% passing rate and the reason why I think that it's so high
051is before we have catastrophic repairs that we have to to make make we have a very aggressive bus replacement plan questions on that here's the actual proposition that we'll see $2.4 million no impact on the tax levy an anticipated uh state aid back of 1.2 million and on an annual basis I like to show this the annual net cost for the ask is about 158,000 when you consider that Aid so all right now we save the best for last and we talk about the undistributed budget which is our biggest challenge of the fiscal year this year and and the story of the budget so the undistributed budget um is really um you know three main categories Debt Service and fund transfers Insurance judgment fees employee benefits you can see employee benefits roughly 83% of that
052at 53 million so I'll break out each of those areas and go through it um so that you have an understanding of of exactly where the increase is this year since it's not been in any of the other presentations that we've we've shown thus far so about 337,000 there is not from Debt Service it's actually money that we had to uh add back into our summer school program so that's an area that we've got to review uh we offset expenses uh in our summer school program uh with covid dollars um and the rate and speed at which the state reimburses us is always is always a constant struggle so we've had to incra increase that inter fund transfer and again what we've been doing is been doing a transfer at the end of the year
053we wanted to put it in the budget to make it uh more transparent so that we could take a look at that program uh in general um and then slight increase in debt service accounts for the increase there so you can see our debt service trend has been relatively flat we'll start to see that increase significantly in the upcoming years because of the new capital project financing uh that continues to go on we're still on temporary Bond anticipation note financing um but eventually that's going to increase uh Insurance judgment and fees these are legal fees records management judgments and assessments in terms of some of what we have to pay back uh for any um assessment value challenges and then we don't control the Bose's administrative cost bosis does and and I have to say
054they've done a very very good job um in terms of controlling those costs um so very good in in those areas um records management I'll speak to we continue to look at ways to digitize our records management from an efficiency standpoint so that is also part of what we're looking at employee benefits that's really the story of this budget development and fortunately our retirement system rates teachers retirement TRS teachers retirement system that's actually going down um ERS we've anticipated we've known a long time that this rate's going to continue to go up and top out at 16 I wouldn't be surprised to see it go a little further um Social Security and workers comp and life insurance and all those other benefits again mostly flat really nothing to say workers comp had a swing of
055100,000 because of our um our claim history but last year it was $100,000 the other way so it tends to swing um but you know we kind of keep a a stable budget and then some separation payments are included in here but usually you could see like you know it's happened in 2223 but we like to see a you know a four 3 to 4% Trend this year it's jumped up to 11.4% because of the health insurance uh increase and that's really the story 70% of the story here is is health insurance and in 10 years that's increase from 24 to 32% um and and again uh the real story is that last bullet health insurance increases have average 6 and a half to 7 and a half and we're looking at a 144 mid
056year this year so we budgeted about 10 came in at 144 so even in the current year budget that we're in we're looking at mitigating a potential deficit uh in that budget because that you know that unanticipated increase it wouldn't be fair for me to say make make those statements without characterizing the Rochester area school health plan amazing uh development back in January 1st of of 2004 um very efficient they can they've Consolidated plans um they've kind of grandfathered one plan and started a new plan for cost savings um and again I just came from the meeting this afternoon so the meeting the the the plan itself has both Union representation from the county and business officials and superintendents So the plan itself is very well run the challenge uh that we're having is really
057uh inpatient and outpatient services and then Rising drug costs um and new and Innovative drug costs uh more so than anything um there was a lot of conversations about um obviously uh uh certain drugs I won't get into um but you just know when you watch TV on the weekend and you see the commercials in terms of what's marketing I looked at the top 10 um you know costs for drugs and they're all there you could probably you know sing the commercial in your head when you see the name it's it's it's right there so so un fortunately you know when we look at the trend experience uh for rash one there's there's two plans right there's one that's grandfather the rash one and then rash two um you know one plan deals with you
058know mostly now uh people that are 65 and older so an an Etna Supplement Plan um which we made changes to uh but unfortunately the inflation reduction act shifted cost uh to the plans and took it away from individuals so if you're an individual you're going to have less out of pocket but then the plans absorb that when you consider our cost sharing model you know the hit that we're looking at just for um those plans you know we're we're looking at uh a little over uh a million dollar increase uh in those plans over the you know over the split calendar year so there's a huge increase there because of that shift and it's really nothing that anyone could do that inflation reduction act that was legislation and I think it was one of
059the best kept secrets about how costs are going to increase again it sounds good because it's the individual less out of pocket but then you got to pay for it through premiums rash 2 which is our main insurance plan for active employees year-to-date claims are just significantly worse than expected so it's interesting I was I was going to try to cut and Pace the chart for tonight but the revenue that you anticipate is lower than you know what was what was expected and then the expenses were definitely higher and I'll show that to you so you know again we're there we're our claim history and it's a you know it's a huge operation our claim history uh was just much higher than expected or forecasted or trended so you can see the trends that are
060here um so what the board of directors had to do mid year is Adopt A 14.4% increase and there was really no way around it in terms of the information that was uh that was put in uh in in front of us and this earlier if you look in your packet you don't have this information I literally just updated it standing here prior to the presentation uh Q4 in 24 you can see Revenue we took in 350 right but expenses were at 361 with an $1 million plan you know loss for plan performance that doesn't include the 6 million that was kicked in from reserves so if we didn't kick in the 6 million reserves it's actually 17 million and if you look at the previous years you don't see anywhere near um that performance
061so this really in a nutshell explains the challenge um and from a budgetary or fiscal standpoint this chart you know simply explains what our budget has looked like um and then what are the rates have been 6.6 65 62 64 67 73 and then boom 144 right you know so it's been a challenge this year with our health insurance budget it's the biggest in increase uh that we've had in a very long time 16.56% um and that's our largest you're going to see that's our largest increase in the budget in this proposed budget this year with again you know elements that are really out of our control in terms of use and history and and that rate setting so what's bearing on the budget to just wrap this up I had to reprioritize and say
062health insurance now fortunately I don't think next year is going to be as challenging based on the information that I just received about two hours ago so that's positive news for next year but it does have a big impact on this budget again I've mentioned this we've got the capital project financing uh Mr pel already alluded to the fact that we still need to look at we've got roof and infrastructure hbac that needs to get done so we really need to consider from a facility standpoint uh what that next project looks like and I know that sounds crazy with the one that we're in but we need to do that we talked about electric buses and vehicles contract Transportation wage inflation and then last but not least I did a presentation for Monroe County School
063boards uh few few weeks ago uh in February and then recently the comp controller just issued a report and it's essentially my presentation and and that report says the same thing school districts have been used to the foundation Aid money that's come in uh the development of the formula the spending of covid federal dollars school districts have gotten used to spending at a certain level you throw some Revenue restrictions lack of federal revenue and then something like this health insurance increase on it school districts have to take a hard close look at can we continue to offer and afford all the programs and services that we have based on our Revenue so that's something that you know uh when we make budget decisions we're not just making budget budget decisions for today we want to
064obviously maintain all of our programs and services our primary focus but we're also looking to see if the decisions that we make today can we sustain that into the future uh very pleased overall to say we were able to absorb that 14.4% increase and maintain all of our programs and services the factors bearing on the budget future is can we continue to do that uh you know yes as long as we don't have any major increases in these other areas so so I think that's probably the um the biggest aspect uh that we've got to just consider going forward um and I think we're doing a good job with that that through modeling and discussions uh and evaluations of programs and prioritization uh long range uh textbook replacement plans and and um our our educational
065objectives and the analysis there so as long as we're still thinking ahead of time and planning um we can be educated and keep that on the side and just make sure that you know our focus is is on how to maintain and keep what we have into the future so we've got a few things left uh to do as part of the budget process the one thing that uh we do have left uh Terry Rachel and I just met with our auditor um yesterday and we've got to have I got to bring a plan to the board of education for spending on our debt service fund because we got about uh two and a half million some of that money can hopefully be used um in a positive manner bringing it into the budget and
066going forward uh with a you know with a good spending plan um it's money that's left over from pre capital projects that we can use to pay down debt so that's that's positive um and so I may you know add that at our next meeting but other than that uh we've got DPT um a couple of meetings and then April 8th we'll bring the superintendant recommended proposed budget and then of course our public hearing and vote are really our our big steps remaining in the process so with that questions comments Mike anything to add no thank good okay