001May the fourth be with you. Can we all stand and uh for the pledge of allegiance? >> I pledge algiance 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. Special reports. >> Mr. Matarazzo. >> Oh, thank you very much, Mr. President. Um, the next CT meeting is not going to be till this Thursday. So, I have nothing to report, but do want to report our cafeteria does such a great job. A lot of parents need to know what your kids can be eating here this month. loaded baked potato dumplings with teriyak sauce, chicken ficasha, bacon wrapped jalapeno poppers, chicken alfredo. Can't believe what are what they get. Panini clubs, chicken quesadillas, all this stuff at the
002at the cafeter. But also know that during the Keystone High School testing, the they're going to be providing breakfast and snacks daily for during the testing. They're actually going to go to the rooms where they know they're have a have a break. So, our cafeteria does an excellent excellent job just to promote it. Thank you. >> Thank you. >> We had a executive session at 5:15 and received information on personnel matters and service. >> Yeah. >> Property matters and there's some general topics. >> Yes. The board also received information from the uh from the superintendent and administrators uh on some various items that are being discussed today uh without further uh without further deliberation uh including the budget presentation that's occurring. >> No, that's great. That's awesome. Much appreciated. >> No problem. >> All right.
003Information. Dr. Harris. >> Thank you, Mr. Fatic. Uh we have one guest and my information if we want to introduce I'll let Rebecca our new business manager who's been doing an excellent job. Um introduce yourself. >> This is Margaret from our auditing office. Margaret you want to I don't know how many years have you been our auditor. >> Well I don't know how long ZA has been the auditor. I personally been pregnant with just ZA since 2017 and I've been on the audit the entire time. So I've been with you guys for a while. You just haven't seen my face because you usually see Brian's because he likes coming here because he graduated from here. So, >> so apparently it's coming back occasionally, but today it was my turn. Yeah. So, as Becky introduced me,
004my name is Margaret Grigo. I'm just going to go over some of the highlights from the audit. I also have a copy of the audit in case you have any further questions to ask me. Uh, no issues. I know you love to hear that. I like to say that, too. uh our required communications per generally accepted auditing standards say that we no significant difficulties. We had no disagreements with management. We started the audit with Brett. We ended it with Becky. Neither of them lied to us. They both are the best. Keep your team. They're the We will really love working with them. uh management representations had been obtained prior to issuing the final report saying everything they provided to us was truthful and no management consultations with other accountants were happening to our knowledge. Uh
005the independent auditor's report was an unmodified opinion which just means that everything checked out and was good and we had no reason to believe that there were material misstatements within the state within the financial statements. uh and they were all fairly expressed in all material respects with accordance to accounting principles generally accepted in the USA. Uh just some very high level overlooks. You had an increase in your governmentwide position. This is because of leasing out that first floor of the administrative building. Uh since it is a long-term lease out and such a high amount, it is added to your statements and that's easily over $2 million of future revenue. So that does increase your net position because on the governmentwide it's recognized now and advertised over life. And you'll see throughout the entire statements the
006lease receivable line and even in this handout that I gave you, you'll see a lot of the times that the increases are due to this lease receivable. that'll all go to your spending abilityless which many places are hurting for right now. So that's a great thing for your future perspectives of that all. Uh looking at the balance sheet, you had an increase of 2 million. Again, that's the least receivable. Everything else stayed fairly. There weren't any huge decreases that we noticed. There was nothing that caused alarm on our end. Uh liabilities had an increase of 61,000, but that was less than 1%. So really that shouldn't be something that anybody looks too far into. That's just the normal everything costs a little more now. >> Uh vert inflows increased again related to the lease receivable.
007Your revenues increased nominally honestly just 2.2 million which I know sounds like a lot of money but it was only 3%. And that's just going to happen because everything gets inflated, grants go up. So costs go up. It rises both on the revenues and the expenses side because as you see the next line down that expenditures also increased for by 675,000. You get the grant money, you spend the grant money, the same amount out. So they increase based on the timing. Other finances uses are amounts that you transfer to your other funds or sale of property or insurance decided that they owed you more money. That didn't happen this year, but could always happen in the future. So that's where that would be in uh you did have a decrease in your general fund balance
008but not by anything that is any sing any worrisome amount that is a normal amount for a school district to decrease and with that lease revenue coming in in future years I don't see that being as big of an issue because the amount that was portrayed in the 2425 school district savings did not have a full year of lease revenue. it started shortly before the end of the school year honestly. So that lease revenue will be higher in future years. Uh your single audit for your federal awards, no internal control deficiencies, no compliance issues, unmodified opinion, all the good stuff. And then I also have my contact information and Brian's contact information on the back. Otherwise, I had no issues. The team at the administrative building is great. They're quick to respond and we get
009the information out on time. So, you're not your low risk for next year and we don't have see any foresee any issues coming because the transition was very smooth between Brighton and Becky. >> That's all I have unless you have questions for me. >> As I look at this paper, would you give us an A then? >> Yes. >> The top has an A on it. Give us an A+. >> A. >> Even better. A+. >> I'll give you an A+. Yeah. >> Ask this question just out of curiosity. >> Absolutely. audit submitted to the state or what are we doing? >> Yes. So, because you have a single audit that was submitted to the federal audit clearing house and available for public view. Additionally, the state uses that clearing house submission for their single
010audit as well. So, the single the federal one was >> prepared and submitted by us and reviewed and also accepted by Becky submitted and then we forward that to the state. >> Thank you. >> Does anyone have any questions? Thank you, Mark. Oh, go ahead. >> Just this is kind of a not a says to the members of the board of management. >> I guess that's us. >> You're the members of the board and then management. >> Management. >> Oh, a I've never heard us refer to the board. >> Now I stand. There I go. Stand correct. >> So the audit itself spans in theory two school years. No, >> we specifically look at one school year at a time from June July 1st of this particular audit that I'm talking about is from July
0111st of 2024 through 6:30 of 2025. So the one that will start in the fall will be for July 1st 25 through June 306. >> It follows the sort of >> it follows the school's fiscal calendar. Yeah. >> Thank you. That's what I wanted to know. >> Yeah. And I just wanted to thank Margaret for being here and presenting this um to you as a board. It's an important step. Um we should have had her last month when you approved the auditor's report. Um but we are compliant and doing things the way we're supposed to do them. I know it can be dry sometimes, but I think it's important that we all hear, you know, what's happening and I appreciate you coming out and sharing with us tonight. >> Of course, definitely always open for
012questions. If you have any any questions afterwards after you review all this, feel free to send me an email, get back to you as soon as I can. But I don't have any issue ever have any issues with your team. So, I'm sure we'll have a smooth year next year as well. >> Thank you so much. >> And I'll make a second another copy for myself next time. I swear. >> Thank you. And um next up, as you know, this is the budget season. So, we are going to do a preliminary budget report and I'm going to move out so you can see. Not going to help. Rebecca, >> you do have a coffee in front of you at the table of the slideshow. >> Nice. >> I can actually see. >> Did you see
013that? I don't think you guys can see it. >> I'm not sure I want to see this. >> Testing. >> Not sure I want to see this. Our chair only goes this way. >> Yeah. >> Good evening everyone. Thank you for having me this evening. Um this is our preliminary proposed budget for the upcoming school year 2627. in front of you. Um you have a copy of the presentation that's also available um publicly. And then also in your packet behind that presentation, you have a one-page summary review of what's in the presentation that I thought would be helpful to you. And then you also have what um is referred to as the um sever budget. This is the data information that is entered into the state budget system and breaks down all the function and
014object codes. So those are all the items you have in front of you, but we're going to focus on the presentation itself. So the presentation for the 2627 school year starts out with estimated proposed expenditures of 71,932,99. And then if you go to the next um page, so Pent Trafford's report card um we're all about education and schools. So we do have a good report card. We're first academically in the county. We're top 3% in state in achievement. We are the second lowest spend in the county as well. We are efficient um effective quality education. Our millage rate in the county is the seventh lowest out of 19 school districts in West Morland County. and we currently are financially responsible for 3,887 students. Um, if you go to the next page, I'm not going to
015read all of this for you, but I thought this was important to include for your um, benefit, but it's the PA school chart of accounts and it's the glossery. So, everything that we do financially has to be coded by function and then by object. So, um, sometimes people don't know what they all mean. So, for example, purchase property services under object code 300. That's where you're going to find the bills that we pay and expenses for our auditor, our solicitor, our tax collectors, our security contracted services and items like that. Um, your 500 object code level is your other purchase services and that includes your transportation, cyber charter, and outplaced uh, tuition students. So, I thought it was important to share that slide with you so you have it for your education and information when
016you're reviewing um, the budget that's at the state level in case you had a question about I don't understand what's in a 300 or I don't understand what's in the 2000. So I wanted to add that for you so that you have some uh helpful information as you go through this process with me. So if you go to the next slide. Um so our 2627 budget timeline as you can see we started in December. You adopted your acton index which means we will not raise taxes above the index. Um and also statutually we cannot raise taxes above the index because we receive adequacy funding. Um, in February, the governor gave his budget address which gave us the proposed numbers that we could use for our basic subsidy for basic education, special education, our transportation subsidy,
017as well as our ready tolearn grant and adequacy funds. So, that information was in February. From January to April, we've been building the budget, meeting with principles, meeting with all of the admin team, uh, reviewing all the lines code by code to get the information needed to prepare these numbers for you this evening. Uh, in April, our healthcare rates were set. So, the rates were set at the consortium of 7% plus um an additional for the different plans, a rate adjustment. So, our PO plan came in at an 8.78% increase, which um I budgeted 8.3%. Um but thankfully there was some adjustment room with some resignation, so that all worked out. Um and it's still a high increase, but it's a lot better than the 10% from last year and the higher percentage. I think
018it was over 10 the prior year as well. So, it's definitely heading in the right direction. >> Question is healthcare consortium something we have to be in or We are a member of the healthcare consortium and it is smart to be in that because it takes all of the um exposure off of us as one district. So if we have a catastrophic event um that we're covering, we would have to pay all of that. But when we pull together, so it is a good thing for us to be in that. >> But to your question is is not required, but we choose. >> We choose. Yeah. And we are a member of that. So and the little star. So, we're here right now. We are in May, uh, May 4th, and it's the presentation of
019the information you'll have for next Monday to vote on the preliminary budget statuto. We have to vote on that and have it available for public inspection per the uh, act one timeline and the school budget uh, PA school code. Brian's request consortium because the corner of our school district small corner trap is Alageney County. We checked into two or three contracts. All right. We compared West expenses consortions compared county consortium because we are eligible for county because of our location and there was minimal minimal difference. And I can also speak on behalf of that. My prior district I was in Albuquini consortium. Um so there's really no savings to jump ship and go that way. Um based on the numbers I've had and seen. So but that's where we're at in our budget timeline process.
020So we're right on time, right where we should be. So then this is important. So the budget process and how um I approached this budget and what we've been doing. So I reviewed the last three to five years of actual spending per category for both revenues and expenditures to identify the trends for the proposed budget amounts across all of the categories. We have over 1500 account codes. Um so it was a large task but I did get through all of them. Um the budget is aligned per the actual spending pursuant to the school code chart of accounts and those were the codes that I shared with you a few slides ago. Also important to note, our salaries and benefits are contracted and it makes up 74% of our entire budget. Our building supply budgets were
021all held flat. There was no increase there. And then state mandates for curriculum with the handwriting, special ed, which is our outplace students and things we have to do for IEPs. Security and cyber charter and the other mandates are all budgeted accordingly to what we are required to provide. um and actual expenditures. >> Yes. >> How many? >> Um >> 1500 accounts. That's a lot. >> It is a lot. Um so there's so some of them what happens is the school code chart of accounts, they will change the account number. So sometimes there's just an old account there and it stays in our system because you have that history that ties into that account. So, you can't get rid of it in your software system, but I was able to eliminate it from what I
022was looking at. Um, and I apologize. I should have started by saying, uh, use your pencil. Any questions you have, if you want to write them down as we go through and even hold your questions till the end, that might be helpful because a lot of the questions you might have, I'm sure I'll get to um, as the slides progress in the presentation. But your next page shows you your summary of revenues and expenditures. And I have listed on the left for you your prior years. And you can see in all the past four years, uh, we have passed a deficit budget, meaning our expenses have been higher than our revenues. And then, um, you can see proposed for this school year, our expenses are proposed at the 71,932,909. That is 1.978 million higher than
023last year, which is 2.83%. It is in line with uh prior years as last year it was about 1.5 million increase about 2.5%. So it's really not off considering the um extra things we needed to add to the budget um for the things that we need. Our revenues are currently budgeted at $7,348,011. That is an increase of almost $500,000 um over last year. So next slide will show you our revenues. Excuse me. So the largest decreases I'll start with that first to our revenue um earned income tax collections based on historical data needed to be reduced $50,000. Our transportation subsidy based on our um preliminary report from the state for transportation that was received in March also needs to be reduced $68,790. Our plan con has been reduced $25,500. The plan con is the reimbursement
024from the state for the old construction and the bond and the debt service. And then our access funds had to be reduced 50,000 based on what is available. um at that we have available that we could draw on. So the happy news for the increases on the revenue side is we were able to add almost $400,000 for the ready tolearn grant adequacy funds and that gets us up to what we actually received this year. Our retirement and FICA subsidy increased $183,334. um our special ed and basic ed subsidy. I was able to increase them to what we received this year plus then took what the governor has proposed and based on the last 3 to 5 years identified what our normal increase is percentage-wise applied that and it's about half. So I was able to
025increase our special ed a little over 40,000 and our basic ed a little over 35,000. Um, and then our rentals, which would be our lease of the uh Randall Court, the admin building, um, increased $40,000 from what was budgeted last year. So that's included as well. So if you go to the next page, um, this is your summary of revenues. So your local funds is 38,458,557. Your state funds from the state are 31,36,374. Federal is a very tiny piece that we get for title one. Um, and that's estimated to be $573,80. And then category 9,000 is other revenue. And that $280,000 that you see there, that is your uh lease rental revenue from the admin building. So that category, as you heard Margaret say from the auditing firm, we used to have that in our
026local revenue spot, but because it's considered a lease, it needed to be moved per the chart of accounts to the 9,000s. So that's, you know, why it's singled out by itself is because stat to be in compliance with the code of accounts and chart of accounts, that's where we have to put it. So that is part of the total revenue in the general uh budget that is proposed for you the 70 million 348011. >> Very good question. On the next slide, so our here you go. You're welcome. So on the next slide, that chart shows you that 55% of our total budgeted revenue is local. 44% of it is from the state. 1% is from federal and uh our 0% other is the 280,000. It doesn't even factor a percentage. Um but it is part
027of our revenue. >> Transportation, correct? >> Yes. Yep. That is all your state revenue. So then if you go to the next slide, your expenditures uh the proposal is 71,9329. On the left hand side, I've broken it down by function code. So instructional represents over $42 million. Uh support instruction staff represents over $24 million. Your athletics and co-curriculars represent almost $2 million. Uh building construction is zero and that is because if we do any building and construction, we do that out of the capital projects fund. So it's not in our general fund budget. Um and then our financing and debt service is budgeted at $3.3 million and that is inclusive that is our bond payment, our interest on our bond payment plus then the general fund transfer um to capital projects for capital projects needs
028either projects to be done or reserves depending on um what the board would like to see moving forward. Those functions are then broken down into our object codes on the right hand side. And the object codes represent everything from salaries to purchase services to supplies to our debt. But as you can see, 74% of our entire budgeted expenditures are salaries and benefits. Almost um 53,386 is the count for those um expenditures. So, you know, that's a huge number and it's all contracted. So, there's really not much wiggle room we can do with that number. So, that is your overview of your expenditures. So, what is the largest impact to our expenditures? If you go to the next page, so decreases, we had over $600,000 decrease in retirement and resignations. Um, rounded number. our workman's compensation
029insurance came in lower. We got a really good rate um from our insurance broker carrier. So, that was a $20,000 savings and that was a nice surprise um because initially my first budget numbers were higher in that category. So, I was happy to be able to uh gain some savings there. The largest increases in the budget um salaries and benefits is $1.2 million. 8.78% is medical. Um security went up 231,000 and that's includes adding $50,000 to that budget for supplies for uh security needs across the district. Our technology is up $212,000 and that is attributed to the high school technology needs of $57,000 for the computer lab. And then our MacBook leases of $90,000 and then our iPads. I know we approved our iPad lease. I think it was aboutund I think it was $161,000
030is what we approved per year to pay on that lease. but we were able to cut uh the Chromebooks and that was about a h 100,000. So that's why it's only showing about a $61,000 increase um for that line item because I was able to reduce the Chromebook line item 100 grand. >> Rebecca, >> yes. >> On that retirement formula, it used to be the one time the employee paid oneird, the employer paid oneird, and the state paid one. Is that formula still the same like that or does that change? >> No. No. So we have we pay 34% currently is the employer share >> paid before. Okay. Yeah. How much does the employee >> the employee contributes anywhere from seven to 10%. >> The state and at one point um that Pasers rate for
031the district employer cost used to only be like 7% or 8%. So they really >> the state pays almost half. >> Surpris. >> Yep. But that rate will be going up again. Um, and then our VOTE students, that budget code is up almost $200,000. We have 140 potential students, which is an increase of 23 students over last year's budget. And that line item is close to a little over $900,000 um just for the VOTE subsidy that we'll be paying uh tuition for those students. And then our utilities, um, based on our averages and what we're actually spending, everything from electric, gas, water, uh, phone, especially electric, I had to increase that budget line by 156,500 in total. The majority of it being the electrical cost. And then if you go to the next slide, it
032just takes all of those numbers. I know some people learn better by seeing it instead of the actual numbers itself, but you can see that 59% is instructional, 34% is our support staff. So those two numbers there, 93% of the budget is being spent on what we're supposed to be doing here, which is the education of our kids. Um and then you can see that 4% is represented um as our debt service and 3% is the athletics and activities that we have in the district. So I just wanted to show you that in graph form so you can get a clear picture of all of those expenditures and where all the funds are going. And 93% is exactly where it's supposed to be because our main goal is educating our kids and providing them that
033first class education. And then the next slide, I know it's hard to see um but this slide you have in your packet um that's behind the presentation, but this is just a breakdown of the actual spending in 2425, what was budgeted last year in 2526, the proposed budget in 2627, what the percentage of the total budget is for each of those categories, and then an increase or decrease across those categories by dollar amount and then also the percentage increase. And that is everything from our regular instruction the whole way down to our budgetary reserve which as you can see there's nothing budgeted in budgetary reserve. Um but this is everything where everything goes um and the analysis that's been done um over the last couple months to just lock in where our actual expenditures are
034and aligning them with the budget in that way. So that brings us to the next conversation and part of our budget is our fund balance. So our fund balance uh the audited as of June 30th of 2025 was $6,721 105 sorry 72,15. So the maximum unassigned fund balance that we can have per the state is 8% and unassigned and that's 5,717556. So obviously we're a little over that but that is okay because we do have committed fund balance. Um the goal for the district that I would like to see us at is 12% which is approximately two month of expenses and that number would be 8,576335. So the next page shows you this is our audited fund balance deficit history. So the column, the yellow represents the beginning fund balance. The red represents the ending
035fund balance. And as you can see, there's been a steady decline year-over-year of the fund balance uh being used and having a deficit. And then the blue line that you see there going up is the 12% that um would be a better place for us to be at. And then how do we compare to others around us? So, I went on to the PD website and gathered information about our budgeted fund balances from our neighboring school districts from Franklin Regional, Norwin, Kisky, Lrobe, and Greensburg Salem. And it shows you their budgeted expenditures and then what their budgeted fund balance was for the 2526 school year and what their percent of budgeted expenditures were. So, as you can see, we're the lowest um around our neighbors and just shows you we have some uh some work
036that we could do. Obviously, if you go by the audited fund balance, our fund balance is higher than what was budgeted. So, that is a good thing. So, that increases the percentage a little bit. Um but it's definitely not um in that 12% where I would like us to be to put us in a good perspective for the future. So then after we talk about fund balance, we need to talk about our millage rate history. So I went back five years and you have your millage rate which was 89.75 in the 2223 school year. Um currently 2526 it's 93.75. You can see the next column has the millage increase value and the average yearly taxpayer increase and then the monthly taxpayer increase. So last year you raised taxes three mills which was approximately $84 a
037year for your average taxpayer broken down to $7 a month. If we went to the index of 4.125 mills that would take our West Morland County millage rate to 97.87 mills and that would be an average of $199 increase for the year for average taxpayers which breaks down to $16.64 64 cents a month. And then what is that impact for our taxpayers? So your median assessed property value in West Morland County is $28,040. Your average home in 2526 at the current millillage rate pays $254463 for their property tax bill. If we do a 4.125 tax increase for millillage, that rate of 97.8 87 would mean 274427 which shows you the increase of 199. The current homestead farmstead exemption and that is the money the property tax relief from the slot revenue that we receive from
038the state. Um currently that factor is $232. So if taxpayers qualify for that that is reduced from their tax bill. Um, the reason why it has a question mark there for this year's rate is I don't have the number yet because the state just sent us the >> Friday at 4:00 we got the um property tax allocation. So, unfortunately, I did not have enough time to draft that number. But now that I have it, um, I'm hopeful to have that number for you on Monday um, when we come back and meet again. And then the next slide I wanted to show you. So the act one index versus our millage rate history. So the last couple years you can see I wanted to show you what the mill was increased, what was available to be
039increased if you went to the index or even half of the index. And then the next column shows you the millillage that was not raised. And then on the right hand column, it's the value of those mills that weren't raised. So collectively um the maximum if you would have gone to the act one index you left on the table we would have an additional $1 million either in our fund balance um or capital reserve um to work with. So that's the maximum. Obviously if you would have gone middle of the road maybe that could be a $6 million number. A little less than half of that could be a $2 million number. But like in the 2324 school year, there were no mills increased. We could have gone 4.67 and that would have generated 1.468
040million in tax revenue. In 2425, we went 1 mil. There was 6.1 available. So that left 5.1 available. Um and that was 1.6 million. So on years when we don't raise taxes at a consistent level that is fair and equitable, we put ourselves behind. Um it's important to note that the act one index was created by the state so that it limits the school board's authority to go no higher than a certain rate to be respectful and mindful of all property owners. But it also identifies our assessed value, our market value, our STEB value from the state, our median incomes. And it's a whole formula that the state uses. And it's essentially important that that be part of our long-term plan here because you can't just look at one year at a time. we have
041to look at what millage we raise or don't raise this year continues to impact every year following um and the plans that we have. So, I thought it was an important slide to share with you of the rate history and what we've left on the table. Um, obviously, >> doesn't that interfere with our ratings for what we also get due to new formula? We haven't raised enough. >> Um, no, it it really doesn't impact the new formula. It really just is money that's been left behind. So, that's money we could have locally had and it's money the state is never going to give us. So again, I'm not advocating that you go to the maximum all the time. I don't think we have to be there, but you run a risk if you don't have
042a strategic plan moving forward because what's happening, and you can clearly see it here, in 2324, our index was 4.67. The next year, it went up to 6.1. Now it's back down to 4.63. And based on what we've received from the state, that number is going to continue to fall. So next year that n number for the max that we could go for millillage might only be three. And you can see in 2122 the highest we could go was 2.9. So what you're going to see is there was this climb in the index up to that 6.1 that percentage adjusted for penford and now it's coming back down the other way and it's heading back down to 2 mills. So, it's really important that we have a multi-year plan because if we if you don't
043tax when you can, then as the index falls, you're not going to have that capability because you can't go above the index because you received the state adequacy funding as well. So, it's a really fine line that we need to walk, but I think it was just really important to show that to you so you can see, you know, where those plans need to be and maybe that can help guide us forward um in achieving the goals that you might have. Um, >> the state wants you to pay your fair, >> correct? The state does want you to pay your fair share and responsibly pay your fair share. The reason why the index came around is because they didn't want it to go from, okay, you no mills, no mills, no mills, no mills, and
044then, oh, we're going to do a new build, so you're getting a 12 mil increase all at one time. >> And this past year, I believe we had the second lowest percentage increase in the county. >> Yeah. So, it all ties into that. So, on the next slide, um, is our path to a balanced, uh, budget. Oops. Okay. So, our current deficit is $1.584 million. And how do we get to a balanced budget? So, there are some options. Option number one, um, and these are just considerations. Um, and we have a lot of work to do, but option number one is a 4.125 mil increase, which is 4.4% at our current collected value. That would bring in $1.3 million. um we could reduce our debt service which would be currently it's budgeted at 3.3 million.
045So there's some flexibility there um if we needed to. Um and then we might get those adequacy funds which is almost $400,000. So that is one way um to get to a balanced budget and have a surplus. Uh the next option would be if you only did raise your taxes 1 to three mills, you would definitely have to reduce your debt service, you would have to get those adequacy funds from the state and you would have to reduce staff. And then the third option, if you don't want to raise taxes at all, you have to reduce your debt service. We would have to get the adequacy funds from the state. We would have to reduce staff and we would have to uh cut programs. So, moving on from there. So, next week, May 11th, you
046will adopt the preliminary proposed budget. Um, again, that's not the final budget. That's just where we're starting at, and it needs to be voted and approved so we can post it and move on to the process of coming up with our final budget. Um, I and the administration team will continue the process towards the balance budget with options and opportunities for the board to discuss. Um, I'll also this week be working on the homestead farmstead property value estimates to complete those as well. Um, we'll also recommend options to continue the path to the balance budget or a surplus budget to build our fund balance. And then June 1st, we'll present a final proposed budget for you. And then June 8th is our budget adoption. So that's our timeline that we have remaining. Um and there
047are still some moving parts to the budget for expense. Um like the votech I believe is finalizing the numbers for students for next year. There might be a $20,000 savings there. Um I believe we might have a resignation. So there might be some savings there. So the numbers you see today are worst case scenario. So there is still work to be done. >> Yes. That's not okay. >> Colleen counted it. Yeah, >> she counted. >> It's 28 days. >> No, we're okay. That's very close. >> Yes, but we're we're okay. She double checked it for me. >> Thank you. >> You're welcome. Um, and then the next slide shows you some considerations to think about. So, what level of debt service should we maintain moving forward? Our current budget reflects $3.3 million, which is our
048fund or our bond, our debt service payment, our interest payment, plus then almost, I believe, $760,000 for to transfer from the general fund to the capital projects fund. Um, that was 580. And I know you guys had requested that as the money falls off of the bond and the interest that that money should be preserved and moved to capital reserve. So I did take that money, added it to the 580 and increased that. So it maintains that current level of debt service that we have in the current budget of $3.3 million. So the question is, do we need to maintain it at 3 million? Does it need to be 3.2? 2 million. Does it need to be 3.1 million, 3 million? Where do we want it to be? What projects are we going to do
049moving forward? It kind of ties into the conversations we had last month about our options with future borrowing. So, that's a consideration to think about and discuss. Um, the adequacy funds, will the state budget pass? Well, it must pass. I'm hopeful it will pass on time or at least better than November from last year. Um, but will they approve what they've proposed? If they do, that means another $397,000 in adequacy funds for the district, which is more than a mill. That would be a huge help. That solves the budget deficit with that and a tax increase without touching your debt service number at that $3.3 million. But again, that's not a guarantee. So what risk, you know, reward do we take with that? And then the admin building lease revenue is included in this budget
050to help offset the current expenditures. So if you want to remove that and dedicate that, then again, you're going to have to make cuts or reduce your debt service, you know, like mathematically it just doesn't you only have so many mills to work with. Our expenses are what they are. our revenues are what they are. So those are the decisions and some considerations that need to be made and the last page just says thank you and to be continued because it's not over and done that but this is the starting point. Um, but I hope I've been clear. Um, and I know I've been thorough. So, I hope we can move this forward and I can help you and you can help me and our admin team get to a final balanced budget and stop
051passing deficit budgets. Um, that definitely needs to be something we lock in for sure. So, I am ready for the questions, but I need a drink of water first if that's okay. >> I have my water over here. >> Very nice. >> Thank you all for listening. I know that's a lot. Um, >> no, I don't need the screen on for the questions, but you should understand. You did a great job. >> Thank you. >> Yeah, I can go back to my seat if that's okay with everybody. Um, >> the debt service you're asking about, is the 3.3 uh the highest level that that's been it 3.4 3.5? >> Um, it I don't have that answer. That's just where it is right now, but I could look that up. And >> yeah, we definitely want
052to know as a board because this board member definitely wants to keep that debt service. What you know, that's that's our only way to do repairs to buildings or or capital improvements. You cannot you cannot use that debt service for current expenses. >> Yeah. So, if it's dropping and we're not aware of that, we need to put it back to where it was and and deal with the consequences because again that Nick will say that wherever Nick is, you don't touch that money that's coming off the books to pay your you'll never get it back, >> right? So if you look our um >> so our budgeted debt service in last year's budget was 2.746 million and then we also had the 580 that we transferred. So that is the a little over 3.2 that
0533.3 million. So this year our debt service because the uh bond payment is lowering and the interest is lowering. So it went down to 2.565 million which is $181,000 less. So I increased the transfer to capital reserve or projects you know whichever one it wants to go to $736,369 which is an increase of 156. Now somebody's going to ask me well why isn't it 181? So the reason it's not 181 is because I also had to reduce the plan con subsidy reimbursement by $25,000. So I can increase that but then it just increases the deficit as well. So your subsidy and your help from the state in that reimbursement is going away. But that's the difference. It's the net increase to maintain and sustain that debt level. >> Well, I'm glad you did that. And
054as this debt comes off and you're and you're making those transfers, you have to you have to make the board know uh in the future that when they use that money if they decide somewhere 2, three, four years from now to use that to pay for existing expenses, you must paint the picture for them um what they're doing. They're handcuffing themselves as far as I'm concerned of any ability to to build a new building in the future. Without plan con, taking that money is just it's it's foolish. So, you know, I might not be here, other board members not be here, and you're moving this money. It might get very tempting in the future uh to make a decision or tell the board that it's better to use it for expenses. But I'm just warning
055you now against using it for that. And the other part of that too, maintaining that debt profile service is really important for the decisions coming up with what we're going to do moving forward. Definitely important for the bonds that we're considering when the wraparound, you know, when that debt falls off. Um, so it's definitely an important conversation to have. Um, I recommend, you know, keeping it at that level, but I also recommend not using that $780,000 to fix old buildings. we might want to consider slowing off on some of those projects and holding on to that money and waiting for our next bond to start doing um some better projects. Um >> so those are just some of my recommendations, but I really think the onepage summary that I gave you. Um second will help
056you navigate some of the documents. Um and these documents represent revenue and expenditures. These are the numbers that I have to type into the state um into their budget process so that we are compliant. Um but I'll gladly answer any questions you have while I'm drinking my water. >> Would you want that $20,000 a monthly rental fee to go towards that $700,000? >> Yes. So that the revenue we're generating from the lease, the $280,000 is part of our general fund revenue. So it can be considered that it's going, you know, and it's part of that 700. Like it doesn't matter how you look at it, it's part of the revenue. >> Yeah. But once you get it with that $700,000, it's going to stay there. >> Well, if we maintain that level, we'll maintain that
057level and it would go to capital reserve waiting for the project or capital projects waiting for the project, but it would, you know, it would be set aside for whatever decisions we make for buildings. >> Yeah. It wouldn't go for buying new trucks or anything else like that. >> No. Once it transfers to capital reserve or projects, it has to stay there. The only thing you can pay out of capital reserve is you could pay your bond payment and your interest or you could transfer it to capital projects to pay for building construction renovations, things like that. >> We have a motion or you just want to >> Well, we're not to that point yet. We really need to get the preliminary passed. Um and then we need to decide and make decisions moving forward
058of what the plan is >> because I will gladly present that. >> Okay. >> Just a couple questions. Um as you look back at 22 23 23 24 and 24 25 the actual prior years the actual expenses >> next Monday. Could you do me a favor and actually let us know what was budgeted >> for those years because I mean this is the actual >> Well, no, this is this was budgeted. Are you on page? >> I'm on the summary of revenue and expenditures page. >> Yep. So, it doesn't say it says budgeted, correct? >> No, it says expenses, >> right? Budgeted 2526 expenditures. >> Those aren't the actual. >> No, these were the budgeted. So, I I'm going to be the first to tell you that I don't remember having a discussion each year
059of $720,000 >> of unallocated revenue. >> Yeah, >> I don't remember those conversations. >> Yeah. And then if you so there is one page um that smaller print page that shows you the actuals for 2425 but I can go back and look up actuals versus budget. >> Know the actuals because this is not a deal. >> Okay. >> That we win every year having a shortfall of $720ome,000. >> Yeah. in particularly in in the uh fiscal year 22 23 which I think you're the historical page which was a millage increase of zero. >> Yeah, keep in mind and I will look and get you the actuals um that go along with that. Um this was also and I wasn't here so I don't like to speak out of term But this was also um during
060uh Esser's funds where so like you received them and you had to spend them down. So I don't know that you necessarily passed this much of a deficit budget, but this is where it landed and it could have had something to do with the Esser's funds. So but I will look that up and bring it back for Monday. >> Remembering we were $725,000 short. >> And when did the Esser's fund end? ESR's funds ended I believe you had to use them by December 30th of 2025. >> So about a year ago. >> Yeah. And I'm but I'm pretty sure that you guys were done with that by June 30th of um before that deadline. >> And that would probably partially at least partially answer his question. >> It it could but I don't want to
061speak out of terms in a row. I don't have it on memory. >> I think that's something that you can zero in on. Why is it 777 and 84? >> But I'll definitely >> That's the question. >> Oops. I'm sorry. >> Who's next? >> Same thing. You done, Scott? >> Yeah. It's all around. >> Pardon me. It was all around this question. >> Okay. So, >> I'll come back to it. >> Excuse me. This is my first year, so excuse me for any ignorance that I may have regarding this situation, but I suppose we should start with the good news. >> Okay. And the good news is we are first. Pentra is first academically in West Mormon County. >> Yes, >> we are in the top 3% in achievement for the entire state. >> Yeah,
062>> we are the second lowest spend in West Mon County. >> Our millage rate is seventh lowest out of 19. >> Yes. I think we have effectively and efficiently educated the children in our district. >> I agree with you. That's why it started with good news. >> So, thank you. You know, may maybe the the timing on this is impeccable. It's teacher appreciation week >> and everything that I just said >> is a result of our incredible teachers that we have in this district. We do really great stuff. >> Now, >> yes, >> the back half of this is that is a horrific >> financial outlook for this district in my opinion. How many years, so some questions. How many years have we been deficit spending? Well, based on that slide that Scott was questioning,
063it's been at least the last four. >> So, for four years, we've taken from our savings account >> to cover our operational budget, >> right? >> And that leaves us in a place where a tax increase >> to the index level >> will not even cover >> our current expenses. >> Quite possibly. everybody. >> So, we have to like this isn't even where we want to or we may have to, you know, we may want to think about. We have some hard cuts to make in the next 28 days if Colleen did her math correctly. >> I hope it's 30. It needs to be 30 or we need to >> and then from there to amend if we want to put money away into this reserve fund, we need to cut even more. is the
064am I reading that? And I suppose my final question is who is it that convinced our board to go with mill and a half, zero, 1 mil, 3 mills at a time when 4.1 isn't even cutting our or covering our expenses. >> How did we get here? >> Because it was never presented that way. Mr. John, I look at this and I was going to piggy back off of Scott's concern. So, how do you go from 700700 to 84 to 1.5 of his deficit? >> Don't you think is just curious? In last year's budget, we were only deficit at 85,000. >> Well, that deficit last year though is represented by the 3 mil tax increase that you did to get it down to that 84,000. >> I get it. that then you jump from 84
065to 1.5 in one year >> without a tax increase. >> I I I'm listen I'm not tearing down the walls. I'm just making the argument for him that somebody who hasn't been on this board. >> It wasn't like >> here that way for decades, John, this board and one didn't I I I agree with you 100%. But the makeup of the board very conservative and that's just, >> you know, I don't know what else I can tell you. So the good deeds that we have been doing as a board in the interest of >> and and John remember we're doing it with next to zero commercial tax base that >> that's the one of the big problems we have. We don't have the commercial tax base a lot of our peers the route 22 quarter
066the route 30 quarter we don't have that route 130 >> maybe it's time we work with our local municipal officials and educate them on the help that they could provide us. Well, >> we are we are at the mercy of the tax base that the municipalities that this school district serves provide us. >> No, >> as you know, I I've tried that over the years when I was working both sides of the fence and it didn't get too far. >> Dallas, John, Brian, you guys know if you would if you would bring Brian in and converse with him. I believe George, if you would make the argument with him, you look at that chart. Uh I think when I got on here it was 5149 of state versus what where the local 5149. Look what
067it look where it's at now. >> And I believe if you would bring Brian in here, not to put him on the spot because I believe this is what George was communicating with us. He's going to tell you that the Republican caucus is saying, "You guys have enough money, you're just spending it poorly." >> That's right. >> Just to break it down. And when I mean poorly, it's in the contracts that you're giving out. I'm just stating what I understand. Not that I'm saying one way or the other. So, to your point, if you would bring him in here as your state legislature in this district that he's in and he's going to advocate for you, he's got an uphill climb. I would have told Rebecca to bring him in here and have him explain
068how the local taxpayer is now every year taking on more of the burden. >> Well, >> when it's supposed to be I don't know what the law is. I don't know if there is a 50/50 law. >> No, there's a formula though. Kim Ward came in one year. >> Yeah, we've had Kim Ward and George Dunar came in here. We've invited them in more than once and asked them these difficult questions and didn't get great answers. It's not just once. We've >> may not be that, but I believe they think that there's being enough money funded to >> So the formula drives what our subsidy is >> and that's based on our average daily membership, median income. >> Correct. All of that >> non primary speaking, >> it's all wrapped together. And then if you
069remember the lawsuit against the state that they weren't paying their fair share, that is how we are now getting this extra adequacy money every year because our ready to learn grant I believe used to be closer to was it 500,000 >> almost 560 >> and now we're up to 1.152 million and if the current budget goes through as passed they'll add another 397 to that. So we'll be up to almost 1.5 million. So, you know, that's kind of where we're at with the state, getting them to pay their fair share, if you will. >> Yes. Well, the formula is very oldf, >> right? >> And we've already we've already proven as a district, it's not the amount of money that you throw into trying to educate a student because we do that as one of
070the best. But, but the fact is that the state gives more money to underperforming schools and doesn't reward the performing schools. And that's been a battle for forever. >> And just so you know, >> it's been it's been ever since I've been on the board. This is my 18th 19th year. >> Yeah, we've been back. >> We are the second lowest spend in the >> So with that being said, we have about $350,000 worth of spend to cut. >> Yeah. Um couple comments. Um first of all about 30 some years ago I was somewhat as president of PTA going to these meetings >> and I wish I was in high school. >> No my kids were no they're not that old. >> At one time I believe the state was paying 60% and we were
071paying close they're paying close to 60 we're paying close to 40. So it really has >> It has reversed. I watched it go. >> Yes. Now, >> now towards Scott Scott um contest point. I did I do remember a time or two maybe Brett saying that we were going to go into um our fund balance to a sizeable but I I concur with him and I think I asked Jim we don't remember this >> and is you know and I don't can't think I can't imagine the three of us >> would not have remembered it >> right well I will go back and get all the data and see if I can track it down but it's probably ers related if I want to put >> I think that's part of the key. I'm pretty
072sure from other board positions I've been involved in I think look at the ers. I think that's going to at least >> a significant answer at least partial to the question that you were asking. Now when in the past when we went into our fund balance there were times when we went in to repair roofs we took chunks out of the fund balance for I believe Harrison Park roof >> and I I don't remember exactly but we took big chunks out of our fund balance the last several years. McCulla Harrison Park and and I don't want to say them all because I don't remember exactly >> the admin building we paid out of our fund balance. >> That is true. That's a >> we have absolutely dipped into our fund balance significantly. >> These are
073onetime purchases >> in in mostly buildings grounds and and trying to preserve the buildings. Like I always said, keep the roofs intact. The foundations are probably good, but but we get to the point where we can't continue that on the ongoing long-term basis. We're we're approaching that. But >> um I I have a question here. >> You may not know the answer to this. This says on on the uh pent report card, second lowest spend in county. Who's who who lower than us? >> Norw $271. >> That's one. Who's the other one? >> No, we although Okay, we're only number two. >> We're number two. >> So we we spent >> validate that. >> But I think looking at some of these and >> what's that? >> And Nor has around 30. I say Latroe's
074lesson us brings Salem's lesson >> for he's talking us lowest spend are you talking what are you >> cost per student cost per pupil >> not budget >> I'm just I'm not sure what you're pulling that from >> so the >> are you talking about cost per student >> cost per student >> okay I think we need to be clear about that >> yeah because I guarantee you that the reason I asked city city agent has to be way lower than this >> in spending cost per student no overall spending. Their budget's way lower. >> So, this this is just this is in cost per, right? >> Cost per student. >> Okay. That that explains. >> Yes. >> You have a couple questions. Rich has some Brian has some first. >> Good. Good. >> Um
075we as far as dedicated fund balances, we have two, correct? Uh the capital project and >> there's capital projects fund and capital reserve. There's about not quite a h 100,000 in cap reserve. >> And you you say the capital reserve is to pay um >> well cap reserve is a pot of money that can sit there to grow to be used for projects or to be used to pay your debt service. Now, I we were if we're talking about setting money aside for new construction and and the extra that you have put into the capital project fund, I would like to see that fund being the other dedicated fund being maybe even reabeled as a building fund for the really big projects. If we're taking we're bringing our debt surface coming down and we're bringing
076that money somewhere else. I'm I'm okay with the 580 in the capital projects fund because that that goes to a good use. But I ultimately that was supposed to be the fund for con uh new construction and renovation, but it somehow morphed into the project fund. But I I think we you know keep we I would like to see a project fund and a uh building fund new new construction >> and we have the cap reserve is fund 32 which is the about the $100,000 in there and then fund 39 is the capital project fund and has a little over I think it has 700,000 in it. We transferred 580 into it from the general fund and then it had a little bit of residual left over from the prior year. >> So that's what's
077currently in there. And then we have the projects approved to be done over the summer which will probably take about 350. I can't remember the math off the top of my head but it will reduce that down and then we'll transfer more. But then you can make the decision are we transferring it into the project fund or the reserve fund. But once you transfer those monies in there that's where they stay. They can't come back >> to the general fund. And the fund balance is the general fund. It's like your savings account. It's what's left over at the end of the year, >> revenues versus, you know, over expenses. What's left in your >> At one point in time, we did pass um a mill. We firmly designated that one mill is to go to
078nothing but a reserve fund for new buildings >> and it it we nibbled away at it for years. It was there. Matt, you can correct me where I'm overstating. >> We kind of talked about this last month, too. That was brought on. We we definitely had one mill and and a roof went bad. We took it out every We kept eating away it. Now it's down to what did you just say was in there? >> There's $100,000 in reserve >> and that was it was was a whole lot was it was in the millions. >> We didn't designate vocabulary correctly. That's why people that's well we didn't monitor as well as we could but whenever the big expenses came up here park roof makulla roof >> and there's others we dipped in a million at
079a time to fix >> roof middle school now $200,000 >> so we we collectively as a board approved drawing those down >> Nick is right you discussed last month discussed how little there was and we didn't do the wording right specific speific enough. >> We weren't specific enough so that it was consistently going into that account >> going in and staying in. >> Well, >> that was the part going when you got these old billings and they keep on building left and right. >> They will $100,000 for a floor middle school. >> I mean, what are we going to do? >> Yeah. >> Well, the gym. Yeah. Well, a lot of places. >> Yeah, it's true. >> The roofs were the big Brian's got some questions. some word about your summary of revenues. >> 280,000
080you have on there for interest. >> What's that? What's that called? >> What page are you on? I'm sorry. >> That's the lease. The 280,000. >> Was that for the lease? >> That's the lease. And it used to be under local revenue, but we had to move it down to the other category because it's uh designated as a lease and a receivable >> per the chart of accounts. >> I saw an interest on here somewhere. So, uh, dues and interest may be on the expenditures page under the object codes. >> So, that, um, the interest there, that's the interest on our bond on the debt service. The majority of it is all that. So, the interest there, I think it's like 465 or $470,000. And then the rest um that falls into the object code
081800 is uh dues and fees associated for just the different licensing we have to pay for for teachers and and staff >> 9.2 and other purchase service we were talking about that what's that? >> Yeah. So under the 500s and that's why I put that glossery in on page three. So your 500 object codes includes transportation cyber charter outplace student tuition. So like um the students that have to go to St. Vincent or Adelfi or any of those other places. Um but transportation and that 500 transportation is like 4.7 million I believe. Um cyber charter expenses is probably 1.2 million of that. Um outplace tuition. >> 1.2 1.3 million. Um What else is in >> just to make something for John? >> John. >> Yes, sir. >> Our favorite word here as a board is
082unfunded mandates. Right. So, right there is a great example of one. A charter school. You give that 1.2 million back to us and we're not at a deficit very much, are we? >> Look, I No, no, no. I'm just It's in, you know, everybody can listen to it. It's just things that we can't control, but we're expected to control if that makes sense. Well, don't forget that state and and we may be headed there again this year with a governor that has a whole lot of spending and not a whole lot of revenues. But that state budget impact passed last year cost this district over 130 $140,000. That's the estimated value. >> 13 $140,000 and we're going back at spending more than we have this year. If you look at the governor's budget, I >>
083think we need to give Representative Razzle some credit there. Matt sent out an email there that he uh introduced legislation that would fund schools at 85%. If there was another budget impass, so you know, got to give him props for, you know, taking initiative on doing that. >> One other, you know, observation here, our salaries compared to our benefits, there's not, you know, there's about $8 million difference there. We paid for benefits and salaries. Um well benefits I mean you figure uh medical benefits for a family cost about $32,000 um a year. Um pasers is and FICA so Medicare social security that we have to pay on top of that is about 41% on top of the salaries. So it's a huge chunk. >> Then one final question $75,000 a decrease in in grant money
084there. >> 75,000 what was that from? So that is uh the PCCD grant funds. Um I removed the revenue because the expenditures aren't budgeted and the PCCD grants and those grants are very variable. We never know if we're getting them, when we're getting them, how much we're getting, and what they're for. So it's really not worth it to place a revenue there that's really not going against the expenses we have in the budget because any of those grants we're getting are spent on something specific that was not budgeted. So that's why I have a question was posed to me. >> Hold on. >> Sorry. >> I have one final question. >> Jim's after Jim's after uh >> Oh, I assets. Do do we have money tied up in CDs or anything like that or >>
085we we do we have um so we invest our money through PISLO and they make sure you know all of our money that we don't need for bills we have in shortterm and long-term to gain as much interest as we can. um and that drives our interest income and our revenue side. So yeah, it's not just sitting at S&T Bank. It is um wellinvested. So it is. >> Thank you. >> Salaries and benefits 74% of our budget. That seems like a very high number. Is that are we topheavy in that area or is that common? >> It's very common in some districts running 82%. >> It's been higher here too. It's been higher here. I've seen up in the 82 range. >> Oh, for sure. >> Definitely been around 80. >> Yeah. >> Okay. >>
086So, that's very common. And if you think about it, I mean, that's what we're here to do is instruct and you know, and our people and that's how we're high achieving and you know, we have the right people in the right place, but we are definitely not topheavy in teaching or admin or staff at all. We do a really good job of, you know, just like we had the retirements and we're not replacing. So that's being managed because if those retirements wouldn't have happened, we'd be having a much different conversation. >> We'd be we'd be back up in the 80s, >> right? >> And that and I can remember distinctly years where in the 82 83 range very often. >> But is it my turn for a question? >> Yes. Sorry. Thanks for waiting. >>
087Yeah, I I didn't mean to jump line. >> Um the charter schools, this was posed to me recently. How many students do we have in charter enrollment? >> I believe currently we're at 97 students. And what's the cost per on them? >> So the cost per student for regular ed I believe is now >> it's I think 12,300. >> I I think it's about a little over 12. >> Special ed is in the 20s per student, >> but the charter is higher. I thought >> charter is higher. Um it's probably 15 for regular ed and 26 for special ed. >> Well, special ed and regular ed is usually a big gap. Yes. But but the the charter >> the charter costs are something we don't have a choice. >> Correct. >> And and it's directly
088>> out of our budget. Correct. >> So in in budget line items we have you said around 90 >> 97% >> and that that is a big cost and we unfunded mandates. We have no control over >> 1.2 million. >> We're still waiting. If I could just add one thing, we're still waiting to hear what we're to do with those students who have not provided us the residency requirements because we have a large chunk of students who did not >> charter students. >> Yes. Like cyber students who >> I guess I'm mis cyber charter that >> Yeah. So it's our cyber students and they have to provide us with residency requirements and and the majority of our students have not done that. So, we have to wait to find our guidance from the state because
089we are supposed to be able to take them off our roles, but right now >> we just appealed two and they came off. They were not our residents. We appealed two and they came off. >> So, we didn't we win the appeal on three of those students. Yeah. So, >> many more. >> I would take them off and they can fight us to get back on. >> Well, I agree. >> But what happens though, we if we take them off, they'll hit our subsidy and take the money that way. >> Some battles are worth fighting. >> Yeah. Well, they still take their money. >> They still get their money. >> It's like 49,48 or something. It's like it's a very large number. >> That's almost 50%. >> Like you said, about 15,000 per charter student.
090>> Um for our brick and mortar, probably about 15. I think it's a little close to 13. I can bring those 13 and a half roughly. >> It could be. Yeah. >> And the IU gathers all of that data and I guess they get it from you, but I know I get it. Yes, I have it. I just don't have it all 100% memorized. >> And the special ed there's always a big gap. It's it's it's >> 60% or more, you know. >> So, but I would like a a close number on what charter is costing us. >> Does charter include not only Propel, does it include schools like school for deaf school for blind? >> No, that is our place. >> Okay. Yes, the Okay, >> the cyber charter would just be like Propel,
091Westinghouse, um, PA Cyber CCA, >> and they have to be an accredited charter cyber institution to qualify. And I don't know who tracks that. >> Yeah, state supposedly. >> Again, that does seem like a little loosey goosey stuff going on there. >> Rebecca, can I get your opinion on something? >> Yes. uh for the board, just for general information, uh say say that the board increases uh to the index at uh 4 whatever that was, you're still going to have a deficit of two to $300,000. Uh how you going to make that up? >> Well, that would be the admin's recommendation with Dr. Harris um and what we could do. >> So, what what are we talking about, Dr. Harris? >> Well, we are going to come also the adequacy. Yeah, that's what I was
092going to ask. >> I'm just I'm just asking in general >> saying if that doesn't come in >> correct. >> So every year at this time we prepare a list of cuts that we've already made and we've also we'll prepare you a list of if we don't get all the mills one mill what our top recommendations are what our second recommendations are and third. So we will bring that list to you and we can share that in public. >> All right. Second question um just for the board's information you had mentioned getting back to a balanced budget. All right. What what does that look like over the next three years? Are we talking four this year, four next year, four the year after that? Are we talking four, two, and three? Give me some idea
093of how many mills you're looking at to get us back to a balanced budget over three years. Of >> course not. >> So, we need to start with year one, >> right? They say that's say that's a given, right? >> What are we looking at years two or three? Honestly, in today's market with inflation and contracted salaries and the buildings we need to do, you're probably looking at going to the index every year. >> So, see, to me, okay, I appreciate the information. To me, that's something to me does. It's not >> Well, I don't know what the index is. >> I get it. I appreciate your honesty. I don't know. It's that's not it's not a plan to keep increasing to the index. So, I just want everybody to hear that >> and not
094that I'd be a proponent of what I'm going to state next, but there are ways to go about the index. I know of some school districts that have done that. >> You have to go out to vote a referendum and >> but and I'm not I'm not saying I'd even want to propose that, but I know of a couple districts that I'm aware of from a broader view that I have that have done that pretty often. >> School districts in Ohio do it all the time. >> There's ones right here. >> That's how that's how they ones. >> None of them get the votes they need. >> None of the referendums ever pass. >> All right. >> Not for a tax increase. >> Some of them do for sure. school districts just >> I'm sorry
095I had bad news but I hope it's understandable and presented well >> that's a good discussion presented very well good job was understandable the last three years I'll be honest with you I I don't remember ever seeing 700 something thousand the last three years >> and full trans >> we agree I agree with you >> totally agree >> I'm going to go back and pull mine because I guarantee it was seven something >> definitely not get your actuals and >> your budget was excellent by the way and I think this the first time in a while that there was the level of depth and transparency that I think we experienced. So, thank you. >> No, thank you. Thanks for your time. >> Listen, I would like to see when you start when you bring cuts
096to us, I would like to see extracurriculars cut before any academic programs are cut. Right? these club teams that aren't we we have some tough decisions to make and I don't want it to be about academics because obviously our teachers are busting their butts to do what they can with what we give them and we cannot cut what we give our teachers to educate our children with. We are in the business of educating children >> and when it comes to cutting it can't be from those academic programs. >> Oh okay. >> Well in the past we have looked extensively at extracurriculars >> and we enumerated them and a lot of it's athletics and and every time it come down to it there wasn't much of a bang for buck and cutting extracurriculars. Unfortunately, that only
097represents 3% of the budget, which she kind of explained >> and and try cutting the big >> what happens. You do all those teams and >> all that together. It doesn't really equal the impact of maybe cutting another program. >> Everyone, I appreciate the uh the discussion asking the board if uh we're good now, we can move on for the rest of the meeting. >> Vice President, one more thing to share. >> Just one more thing before we leave. >> Okay. >> All right. Back to Dr. Thank you everybody. >> Um I wanted to end with some actually excellent news. Um Steve Vincent reminded me and I wanted to share this at the beginning. Um our students continue to raise the bar at the with the PTV um video. We have earned 11 nominations with
098this year for the 2026 National Academy of Television Arts and Science Mid-Atlantic Student Production Awards. The highest total of any school in the Mid-Atlantic chapter. This recognition reflects the incredible talent, dedication and professionalism professionalism of our students, journalists, filmmakers, editors, producers, and on-air talent who work tirelessly to create meaningful stories and high quality production. So very proud of him and all the students. Every year they get a ton of awards, recognition, and they do a great job. So when we're talking about extracurriculars, and I know this ties into curriculum as well, they go above and beyond. So that's one program I do enjoy and you know I'm a fan of you know all programs for kids because some students just need the extra um something in their life to give them something outside of the
099academics as well. >> I also mentioned Mrs. Wukage has the um our quiz team. They have been in Harrisburg all weekend >> and I don't know how they came back. We don't have the results yet but they were again in a statewide competition. They ranked. >> Congratulations to both programs. >> Yes. >> Mhm. Do you want me to continue? >> Yes, please. Yeah, finish up >> um for next week under and remember if anything you want moved to the Senate agenda. Now would be a good time to do it because you don't always have to do it at the meeting and we could just tell Rebecca and myself and we can move it. Under extracurricular athletics, there's no items report under budget of finance. We're going to ask you to adopt a preliminary budget under
100and we're going to ask you to designate a treasurer and approve the CWCTC budget and award bid for paper. Under buildings and grounds and safety, we're going to ask you to approve the Head Start agreements. Under employee relations and food service, there's nothing to report. Under personnel and curriculum, we're going to ask you to approve the personnel agenda. authorized the administration to issue reasonable assurance of employment notice, approved the adult education agreement, approves the FID program, and approved the subscription for elementary curriculum materials. Under policy of public relations, legislative title 2, we're asking to approve the list of graduates of the class of 2026. Approve the board policies and admin regulations. Approve 2026 2027 PSBA membership. There won't be items under um taxes, insurance, and census. And there are no visitors tonight. Mr. Peter, thank
101you everybody and good evening. This concludes today's meeting. Happy.