001again. Again, Brother. We're going to get started right on time. I would like to call to order the Wednesday May 13, 2026. Um FY 2627 budget workshop number one. Can we have a roll call, please? >> Mr. Mr. Ramirez, Mr. Riddle, >> present. >> Mr. McBride, >> present. >> Miss Hannah, >> yes. >> Miss Lensine, Miss Favian, >> present. >> President Rodriguez, >> here. Okay, we do have a court. Next item on the agenda is the approval of the meeting minutes. Going back away. >> Yes. >> For the August 5th, 2025 budget workshop number three. I think you've all recently gotten the meeting minutes. You've had a chance to review them. >> Yep. Motion to approve. >> Motion to approve by Mr. Riddle. Second. >> Second by Miss Hannah. Are there any comments, corrections, changes
002to the minutes? >> Can we have a roll call vote, please? >> I don't think >> Miss Ramirez, Mr. Riddle, >> yes. >> Mr. McBride, >> yes. >> Miss Hannah, >> Miss Miss Lensing, >> yes. >> Miss Fabian, >> yes. >> And President Rodriguez, >> yes. Okay. Minutes are approved. And for the record, Miss Lensing under the meeting at 601. and we don't have it on the agenda for uh um opportunity for public comment. Uh but I'm going to just ask I know this is going to be a um a workshop and any public are going to be allowed to participate but is there anybody here that wants to address the board on any matter whether it's on the agenda or not? No. Okay. Then in that case we're going to move on to item
003four reports and presentations. Who is coming up to present? I should have known this poll, >> right? >> Uh after 6 though. Got to uh Good evening um board president, board members, uh superintendent, commu, colleagues and community members. Uh tonight is our first budget workshop and uh we want to provide information to you related to where we are financially and what um the superintendent's recommendations are to the board of education related to uh the district's financial health. Next slide, please. Uh tonight we're going to talk about um do the next one. Okay, we're going to uh talk about what the the superintendent's executive summary is. We're going to look at the budget calendar, uh student population, uh the staff uh within the district, what our revenues are, what our expenditures are, and then what our
004budget uh forecast is. and then we'll open the floor up for whatever questions um you might have. Uh with this executive summary, you will note here that uh the budget that we are presenting tonight is going to outline the financial plan that we're projecting for FY27. And it's really a budget that we're projecting uh going to sustain the district through the end of FY um 27. We know that the beginning fund balance for 27 uh is is fluid because we're in the midst of FY um 26 and so that number is contingent upon uh where we land at the end of this fiscal year. But as of today and based on what we're projecting the revenues to be through June 30th and what the um expenditures are projected to be through June 30th, we're looking
005at uh a proposed budget based upon the request that we received of $326.44 million across all nine of the funds. And in the education fund uh alone, we're looking at of that 326.44 million uh 268 million of it is in the education fund. And that's not odd because the education fund houses most of the expenses uh in the district. On this same slide, you'll see that um according to Mr. Christensen. The student population is projected to be 12,665 from from uh prek to 12 and our staff is projected to be 2638 and the staff projection does not include uh any attritions. It's basically the staff uh that numbers that we pulled as of the date of me pulling this report. So it was as of this month. So the assumption is assuming that uh the
006staff remain level uh and we know that that's likely not going to happen because some people are going to leave and some people are going to be hired but we need a base number. So we used um the count as of the time I pulled this information. Next slide please. Uh we always provide uh to the board of education and the community um the budget calendar uh by statute. We have to adopt the budget no later than se the end of September but it's customary for us to present the the budget at the start of September. So, in case uh we have to make some changes, we have time to do it before the end of September. And you'll see that we have on here uh budget workshop one, we have two, three, and then
007um the public inspection period by statute has to be 30 days. And so we have that. It's going to be on public inspection from the 7th of August through the date that we're uh projected to present to the board of education for budget adoption. Next slide, please. So this information, I don't see Mr. Christensen in here, but this information uh came directly uh from his um projections. you'll see the numbers of the projected count for uh preschool, elementary, middle school, and the high school. And that's where it came up with the 12,665. And based upon his projections from FY, uh the current fiscal year going into next fiscal year, you'll see he's projecting that it's going to be a reduction of 2.29%. and the and the uh changes at each of those levels is to
008the right of the number. Next slide, please. And next, okay, next slide, please. So, uh staff population Uh go back. Yeah, that's it. Okay. So, uh we we went into this is not from the report card. These numbers are from the district's financial system based upon how many staff um we are paying and how many teachers we are paying. So the teachers here uh doesn't reflect only classroom teachers but it's any um person or any job class that's a part of the teachers union. So it it could be uh nurses, it could be counselors, it could be uh social workers and the classroom teachers. Okay. So 1,214 are those that are part of the teachers union. Um and then total staff as of the time that this uh report was pulled, we have 2,638 um
009uh staff members include this includes floaters. So, it could be um part-time individuals and the like, but this is the FTE total that we have active filled in our financial system. And so, we gave you a breakdown at the bottom of specific job classes. So, you can uh kind of look at those to see how many in each of those uh job classes. Wait, wait, >> can we hold questions please until after this presentation? Okay. Next slide please. Okay. So what are we projecting? Um revenue right now is so uncertain and this is not necessarily anything that's why Keegan's doing. This is just what it is. We just don't know what is going to happen. And from year to year, um, we explained to the board that we don't even know what state aid is
010going to be until well into, um, the fiscal year after we have to adopt the budget. And again, we have to adopt a budget by the end of September. And we don't normally get our evidence-based funding, which is a major source for us. Uh, what that is going to be until October, the latter part of September, October. So, a lot of this is projections. So the projection that we used for evidence-based funding uh related to what the governor asked for and the governor had asked for I think 3.2% so we went up 3.2%. But remember uh even when we look out there on isbye's website and we see that the district gets a certain amount of money uh because learn charter school is within our school district boundaries they take the money right off the
011top. It doesn't even come to us. In the past few years, we've been giving them uh about $7 million over the year. So, just think about that. We're giving Learn Charter School of our evidence-based funding uh allocation about $7 million uh dollars over the course of a year. Um again we want to stress that one of the other uh largest uh revenue streams for us is uh property taxes. So we don't want to belabor that. But the reality of it is we've uh presented to you before uh as a result of keeping the taxes level um over the past years, not this this year when we uh levied. Uh we're still going to see um reduced revenues because we'll never regain that base. All right? So that's just going to compound year after year. Uh
012but I'm glad that uh uh we were able to uh increase uh the taxes to the maximum level um this this past um levy period. So based upon that and based upon where the needs are, you'll see uh the projected revenue and the various funds and the largest obviously being in the education fund. And so you'll see 10 and 11. 10 and 11 is still the education fund but internally we wanted to to separate the grants or categorical aid from uh the regular uh local sources. So that's why you'll see 10 10 is the regular local sources and then 11 were the grants or categorical aid right but it's all by is all fun 10. All right. So, you'll see that's the that makes up the larger part of $249 uh million rounded. So, overall
013uh we're we're projecting about $287 uh million. Okay. Across all nine funds. But what I want to point out to you, all right, what measures the health of our district? What funds measure the health of our district? The education fund, the on&m fund, the transportation fund, and the working cash uh fund. Okay. So, when we levy, uh the statute changed just recently that would allow us if we wanted to to put all of our um property taxes in the education fund. But we know that that's not really going to make a lot of sense because we know that we have expenses that's going to come up in on operation and maintenance expenses that's going to come up in transportation, right? And we know that there's going to be expenses in the fund and all of
014those other funds. So what we do, we put the majority of the money in the education fund, but we put a reasonable amount in those other funds to um pay the bills that we know that that we have to pay. But our concentration is on those funds that I just told you. There's no expenses that comes out of the working cash fund. So we put a nominal amount in there. That's our bank account. And I'm just trying to go. That's our bank account. So we don't have to go out. So the working cash fund can loan money to the education fund, the onm fund, and the transportation. So that's that's our bank. We don't have to go out and loan from the bank because we're borrowing from ourselves. All right? And you'll see why I
015mentioned that. Next slide, please. One of the things that uh we've often said too that in in um my office and the business and finance office, it's not all about a budget. We have to also make sure our cash levels are okay. At one time, uh and that hasn't been of late. Uh but at one time, we weren't getting the revenue sources in in time. So, we had to go out to the bank, and this was when I first got here early on. We had to go out to the bank and get a loan because our money didn't come in on time just so we could make payroll. We We haven't had to do that at all. So, what we've done is that resolution that you all just approved last night, that's what that was
016for. I had to have authorization to be able to loan money to the uh to the education fund, loan money to operations and maintenance, loan money to transportation so that if we get behind in terms of cash receipts, we could just temporarily loan it and then move it back. But I had to have authority in order to be able to do that. Okay. So for expenditures education fund 10 and 11 grants and regular local you'll see the expenditures are 268 and it's larger than the others and overall uh 326 326. Okay. So if you go back to the other slide, go back to the other slide just prior uh you see the revenue is 286 or 287 I'm rounding right 287. Go to the slide we just had 326. Okay. So, we have been uh
017successful because in um all of the past years, the district has done a fantastic job in managing uh the expenditures and making sure that our cash reserves, as some people call it, but I call it cash balances um were um were good and we were making sure that we capitalize or maximize iz uh revenue that fell in our laps or coffer for instance the ARA money and then the esser money. So we made sure that we did not put um reoccurring expenses in those um sources so that we could make uh financial decisions that uh we could live with, right? Because that's one of the things we said. We we didn't want to put, you know, all of these positions in this money cuz when the money went away, guess what? You didn't have money
018to pay the position. So, we wanted to put onetime payments in there, focus on those things so that when the money d uh dried up, we would have the ability to pivot. Okay? So, this is the time that we have that we have to make the pivot. We got $84 million in. We did wonderful things, great things, you know, we were able to do things that we otherwise would not have been able to do. So now we have to make the adjustments, some of of which we have started to do, okay? Because we're not unlike other school districts. School districts across the country are having to make adjustments. It's, you know, you get $84 million, you know, you you you have to adjust again because the money is not there. And we've spoken about this
019over and over again about the Esser Cliff. Okay, so that's what we're talking about uh tonight and we've been talking about that over the course of the last couple of years. Next slide, please. So um non uh compensation expenditures, what were the requests from ASAP? What were the requests from the schools? And what were the the um requests from operations? Uh we we're showing you here this does not include uh regular salaries. It does not include supplementals. It does not include any extra pays. None of that. These are only contractual obligations, operating expenses and and those type things. So you'll see that ASAP uh including grants. So local and grants, right? They requested uh $36.6 million. Okay. Uh last uh present uh I think I have those things linked. If I don't uh contact the
020superintendent and we'll make sure that we give you the details because we have the details behind these numbers. Okay. And then the schools with comparability. Uh the state doesn't tell us how much we have to give per um uh student, but it has to be uh equitable. Now, you know, I have my own opinion about that because you you you know, and and I'm going to voice my opinion, okay? because uh we say that we have to address the needs of individual schools but yet we have to give equal amounts to the the schools. So but the state forces us to give >> equal amounts within a 10% range to the schools. All right. So that's what we have to do because we're a tight we're a title uh school district. All right. It doesn't
021tell us how much that has to be per student, but they tell us we have to be within certain ranges based upon enrollment. Okay. So then we know that we have to support the schools. These are not uh these are district. So you see this second line for schools and we say targeted supports. Those are the supports that would come out of ASAP to support the schools. So we put that on a separate line. So for those schools that uh requested additional supports through the district, that would be the 1.6. Okay. Then operations and then um the other uh like the superintendent, board of education, chief of staff, those type things are in the other. So overall it was 60 uh million that was requested in those areas. Next slide please. Okay. So, salaries um
022regular and I try to uh include in here each year how much do we believe that we're going to uh get reduce the the regular salaries by basic attrition. um uh high price retiring, lower price coming in. Sorry. Um so each year I estimate between 1.2 $1.4 million in savings due to those type things. Okay. Uh then then we put on here the higher of the um other uh cost. Uh I want to point out that some of these costs were were higher uh in previous years but they've been the focus of the superintendent uh for sure absent parap pay. So there's been a huge reduction uh in that area and then um out of building subs you'll see that that's almost 3 million. Okay. Uh special ed workload uh that's 730 and then other
023cost is about $7.8 8 million. And I want to point out um that the superintendent has asked uh the deputies as well as my office to review uh some of these stipens and extra pays. Uh total compensation uh we're looking at 178.7 million. That's a significant uh part of that 268. You see where salaries make up the majority of uh the cost within the organization. Next slide please. So this slide um uh really um tells the story. You'll you'll see that education on&m debt transportation on this page and then on the next pages you you'll see uh this is the projected beginning balance meaning what we're ending 26 projected again that's very fluid. We don't know what that's going to be but we we did a um a projection based on historical trends. So we're
024believing that these are going to be very close to what the beginning fund balance is going going to be. Uh what we believe uh the surplus or deficit uh is going to be based upon the revenue we're projecting in that prior slide the revenue we're projected u minus the expenditures and this is the variance. So, for instance, in the education fund, uh we we're believing that we're going to be at a deficit of $19.6 uh million, leaving a uh ending fund balance of 8.9 million. Now, let me say this. The what we are assuming here is that everything that was asked would be spent. Does that happen all the time? No, it doesn't. So that's why it's important for us throughout the year to monitor spending. Monitor spending and and and we meet with the
025superintendent so that we could say, "Okay, we might need to look at this or we might need to look at that and and and make some adjustments because our spending level is too high or our spending level is too low, but it's probably going to be too high. And so we'll have to make the adjust the appropriate rejections. And so you'll see across the funds here um what we're looking at uh deficit of 2.7 and on and m the debt service um a surplus and transportation 2 um five and those are the projected ending fund balance. Next slide. This is just a continuation here. uh IMRF, capital projects, working cash, tart, and life safety. Just so you know, as I said before, the um working cash fund doesn't house any expenditures in it. It's just
026like a bank account. Inside of the working cash uh fund balance of 42 uh million, there's $13 million that's sitting in there. That's uh the balance of that $30 million bond. Okay? So just remember and that money has to be spent um in three to five years and we're into the second year. So that 13 million is going to have to come out of there. So right now it's helping our uh financial health but at some point that has to come out because we have to spend it. Another thing I want to point out is um that the life safety fund uh we have to make sure that um the fund balance in the life safety fund uh doesn't grow uh because there's two funds that we're uh challenged legally with um often if not
027annually and that is the fund and the life safety. the fund, we have to make sure that um uh all of the uh proper cost is uh booked in that fund. And then with the life safety uh the challenges have been related to a large fund balance. So we have to make sure that we're balancing uh all of that uh annually. So overall, um, we're projecting that the the fund district's fund balance of 37.5 uh million at the end of uh 27. And that's uh if we spend everything everything that was requested. Has that happened each year? No. But from a budgetary um perspective um it it it has been it continues to be the position of the business office and the recommendation to the superintendent that we operate as though it's spent. Okay. So
028that the decisions that are made relative to the budget is made with through those lens. Okay. Next slide please. Uh now we're open to um questions if there are any. Um go back to um Brad slide. >> Which one? brand. So, let's kind of uh thought through them so we could see which one you're referring to. It it was maybe number 7 8 and you were talking about um >> 10 fund 10 and 11. >> Okay. >> Was with grants. >> Okay. >> The revenue or the expenditures >> um actually both. >> Okay. All right. So that one district revenues. >> Okay. And so, do we have a a number specific for fund 11? And I'm assuming fund 11 are the grants. >> Yes, ma'am. So what what what is the specific amount for grants
029that we get in the district? Okay. So I did not I have that obviously in my uh calculation sheet. I did not pres pro provide that here. And so I'll give you an estimate uh of how much we get in grants. Typically, we get between 28 to $34 million in grant uh revenue annually >> and we can get you that specific number tomorrow. We I did write down that question, Miss Hannah. >> And are these the numbers that you are that you're you're um listing here? Are these the numbers for FY2728 or >> 26 26 27 >> 27 >> 2627 >> So we haven't did anything for 2728. >> Not in the presentation tonight because our focus was on um where we were going to be at the end of 27. >> Okay. And now
030um this is when you were talking about the reoccurring debts. >> Yes. >> And that nothing was in there of reoccurring debts >> um from the esser. >> Okay. So what we said when we had the er money we focused on not placing reoccurring expenditures in the er money to prevent overspending. So uh for instance a position that was the example that I gave we made sure that we didn't create a position and pay it from esser money because once the esser money dried up we wouldn't have the ability to pay that position. So what we did contractuals that was a one-time payment or purchases that were one-time payments like Chromebooks stuff like that that's what we put in the esser money the esser money >> okay what I am confused about >> okay >>
031and have been confused about >> is the fact that I don't know where it came from whether it was the esser money or whether it was the local money. >> Okay. Mhm. >> When we um did the teachers contract for that historical amount of money. >> Mhm. >> Where did that money come from? >> Some of it comes from uh grants because we pay some of it uh comes from grants because some salaries are housed in grants and some of it comes from local. So, >> okay. So, let me let me kind of let me kind of unpack that if I can. Let me kind of let me kind of unpack that. >> Um, so my my statement stands that some salaries are paid out of grants and some salaries are paid out of local.
032Okay. So when we consider the availability of resources, we consider both grants and local and our ability to be able to do that. So when we um made the recommendation to the superintendent and the superintendent made that recommendation to the board of education, we made a statement and it was a pointed statement. We said if the board of education wants to give this increase then an adjustment likely would have to happen some other place. >> Okay, that's not answering my question. >> Let me rephrase to see if this helps. So when we had access to the ESRE funding that relieved the strain on other funds that we have available for that period of time >> only for that period of time because it is a limited thing. So instead of using funds from one of
033our buckets that we have on the screen here, we were able to leverage the ESSER funding via that. And so because there's less strain on those accounts, we were able to >> access those funds in our accounts in a different way. >> That is correct. >> Hence applying or I don't even want to say awarding because in my mind it's very much deserved the teacher pay increase. Yes. >> Yes. But that was a consideration and I'm very careful about what I'm saying. Yes. >> Because we had to consider that ESSER was going to come to an end. >> Yes. >> So you couldn't make a decision like that put it say you're going to save money because of ESSER and knowing that the salaries for the teachers was going to go not only the teachers
034I don't want to just call the teachers out. The sal whatever the salaries were were going to continue. So I I'm I'm really reluctant to say it like that, but what I will say is that a consideration was made about the availability of funds based upon our ending fund balance and projections, right? And so the reason why I said I wanted to unpack it. Let me let's go back to 2014. Okay, I have to go. You asked me the question, >> right? But my all the only thing I want to know is you talked about we don't have reoccurring debts. >> That is correct. >> Okay. But we do >> because that historical >> Mhm. >> Um increase. >> Yes. >> That's going to be as you talk about compounding. >> That is correct. >>
035It's it it it's a reoccurring debt. >> That is correct. And I'm still not hearing where the money came from. The money came from existing fund reserves and our fund balances and projections. >> Okay, let me finish my question. What does it mean? Non-compensation, >> cont purchase, services, supplies, equipment, those type things. >> Okay. And okay. Yeah, that was the Thank you for bringing that up. >> Yeah. >> Slide nine. And slide 10, please. And now you gave these descriptions. You say regular regular what? >> Oh, that's normal salaries. Base salaries. >> Okay. With all of these things that are right here. >> Yeah. >> The attrition. So, >> those are separate lines, >> right? >> Yes. So, just the salary, regular salaries would be on that regular line. And then attrition, I'm accounting for
036people who leave, right, who had the higher salaries. And then we hire people who have lower salaries. That might account for a reduction of about 1.4 million. And we are we are spending just about $8 million in stipens longevity pay overtime sub in buildings athletics and whatever accelerate. >> Yeah. Other supplemental. Yes. But those are the major areas. Okay. And so now you got sub out of building >> for just about 3 million. >> Yes, ma'am. >> And sub in building that is extra pay. >> Yes, ma'am. >> For somebody. >> Yeah. Like six six period class and seventh period class. Is that Yeah. or if they take uh individuals from another classroom, then they get paid for the extra people that are in their class. That's contractual language. >> Yes. >> Yeah. Extra students.
037>> So, if a teacher's absent and another teacher covers aware Okay. >> And then can I see um uh slide 12? Now, all of these um these reds. >> Yes, ma'am. >> Okay. Now, are we carrying these deficits into the next school year? >> It would be the far right column. The uh third column is the change projected from 20 uh from from the beginning of 27 to the end of 27. So for instance the 1,ion30 128 in the current year we have a certain amount of revenue coming in a certain amount of expenditures we're projecting and so we're saying that the uh reserves or the cash balance that came in in 27 is going to go down by that 1 million. You often hear us say overall we're not deficit but we're deficit in
038the current year, >> right? >> Yeah. That's what that means. >> And it does that deficit compound year after year? >> Not necessarily. It all depends on what our expenditures are and that's determined by the superintendent ultimately with the assistance of the business office, the deputies and others leaders. >> Yeah, I'm sorry board, but this is the disadvantage of us not being able to ask questions during the um during the presentation. But I'm done. Um, so I want to go back to the student projected population first. Um, and I just want to make clear for the community. So, um, charter schools, we lose some of our funding for that. So, that goes to learn charter, right, for those students enrolled. Um, for Christo Ray, since that's a private school, my understanding is they don't get
039access to our public funding. They they get access to grants >> to grants. >> Yes. A portion of our um >> So why so then why aren't we listing that? >> Uh listing it how? >> So we we talk about learn charter school and in um the enrollment by grade and cohort attachment that we have. Yes. >> We specifically call out learn and the number of students. We're not talking anything about Christo. No, because this number, the 12,665 are those students that are projected to attend WKEAN public schools. It doesn't include um learn enrollment or Crystal Ray or any of them. That's our students. >> I understand that. But in the far right column, >> yes, >> we have for each year enrollment. I'm looking at the attachments. >> Yeah, I was going to say,
040so maybe if if he can pull up the attachments. So you guys are looking at the same thing. So the spreadsheet that um Mr. I'm assuming Mr. Christensen created that shows all those school years. >> So I think the clarification I would like is just having that anytime funding is going to a different school. >> If we're calling out the charter, we should also make it um for Christo as well or any other >> Okay. But um I I could assure you >> if I understand >> the other one >> if I if I uh the the the non-public schools are not getting any of our evidence-based funding. >> Correct. >> They're getting um 10,000 20,000 in >> title grants and and other grants. So it it's not the same as 7 million uh dollars.
041>> Yeah. Yeah. And that's fair, but I think >> you still would like to know how much. Yeah. Right. Because those are funds. >> Um I think one of the frustrations that I have when we talk about student enrollment, there are factors that we do not have control over. We need to focus on the levers we can pull on to keep our students in district. So I think that's a takeaway for the superintendent is to identify what are those levers. We can't obviously go out. I don't want to go out and say, "Hey, people have more babies." That's highly irresponsible, but I do want to create an environment where Walkegan public schools is a school of choice for our local families. That's what I want. So, I want to know what are those levers and
042how are we targeting those levers because I think our teachers are great. I think our schools are great. Do we need extra supports? Of course we do. But we all should understand why that happened. Um, but the student population drives how much money we get into this district to be able to provide for each and every student in our our schools. So that's just a takeaway that I I want to talk about. Uhhuh. Um, and again, I understand there are levers we have no control over. I don't want to talk about those. Um when we look at the working cash fund, my understanding is that's where we have our investments growing. That's where we're investing and trying to build or is that inaccurate? No. So what fund like where do our investments happen? >> So
043what we're uh we could say that it's coming out of the working cash fund, but we're looking at what is sitting in the bank. >> Yeah. Okay. >> And so um that's what we're investing. We could say it's the the working cash, but it's what available resources. We don't really separate it like that in terms of what we're investing. We just took the $10 million out of what was available and then invested it, but we're keeping track of what the ending fund balances are for each of the funds. >> Okay. Um and then I have two more pieces. Um, so when we talk about these um, ending balances and we don't always spend what we budget, I want to see the data of this was our budget and this is where we landed and I
044want it yeartoear, right? Cuz I want to know how much under are we trending across multiple years to have that picture, right? Um, because I I'm not going to go there, but we I just don't think it needs to be said. Um, we don't necessarily get direct information of like here's what we approved, here's what we spended, this is what gets recouped back into the bank unless I'm not seeing that information anywhere. So, if when we do the budget forecast, if that can be baked into that for future budget workshops, that would be helpful for me. We can, but um the treasurer's reports that we're presenting, Yeah. it has all of that information, >> but it's not trending yeartoear. It's not giving us that high level. Yeah. >> Yeah. It's just showing you what the
045spending levels uh are and what the the remaining cash balance uh is, but we we could do >> across what? Three years, >> the current year and two years back, >> five years. >> Yeah. Okay. >> Um, and it doesn't have to be done for this budget workshop. I think, yeah, of course, I think going forward, just that could be a helpful tool. The last thing I wanted to talk about was Can we go to the slide with the um salaries and compensations because when we Oh, the one before there you. You're good. Um so when we start looking at this other category and stipens and a couple of other these pieces, this right here projected expenditures is close to 8 million. My concern is when we start looking at um individuals who are close
046to retiring and they have their pension and they are close to exceeding that 6%. And so we as a district are potentially penalized because they've gone over that 6% threshold. This Hannah's shaking her head, so maybe I'm mistaken, but do we do we have monitoring in place to mitigate against that? >> Yes. Um, Mr. Luosa >> is uh looking uh periodically at least a quarter uh at who's approaching that because it's not just the salary, right? We look at total compensation. So any overtime or whatever is comparing that from year to year and then um I believe I don't want to speak for you. You're sending that uh report to HR. HR is then notifying uh the principles that they need to watch um that that person for for overtime and the contract. We were
047intentional in putting that language in the contract some years ago that uh once they approached that that threshold then they stop getting um the additional pay. And if I could Yeah, if I could interject, I had asked um Bleo >> to look into that 6% um uh law and if it had um if there had been something different that they had did with that because I read a statute that in in the new uh legis legislation that they were um they were not >> going to be penalizing >> y >> school districts anymore with that 6%. >> I don't know. >> Mhm. >> I I I'm >> kind of heard that as well, but I've not seen anything concrete. So, we're operating as though it is still in in place. >> We will get that
048answer for the >> Kathy. got the answer. >> So, um I have not had a chance to look at that question yet directly, Mrs. Hannah, but I can share. When I was at the in-house council meeting for the Illinois Association of School Boards on Friday, that bill was not highlighted. So, it suggests to me if it was out there, it's not moving forward. But I will confirm that. >> Mr. President. >> Yes, >> Mr. >> Yes. I have a question here. Um I'm a person that likes to balance my budget >> um and stay uh I don't like to borrow money. It ended up costing me, you know, interest. Um, and I notice here that our revenue, if you took this to a a business or or an account, our district revenue, um, projected is
049286 million. 286.7 million, but our expenditures uh, on the next slide was down to 3 was 326.7 million and that left a difference of 39.7 million. And that has to come from somewhere. either we borrow it or we take it from savings. Am I correct? >> You're correct. >> Okay. So I believe we did. So that's the projection for this next year is I'm looking at the just that figure and I believe that last year we did the same thing. We we have because we have savings. We had approximately a million 100red million in savings uh prior to the start of this school year that we're currently in. But we spent about 39.7 million over what we uh brought in. So that's reduced our savings. And then if we spend uh again 39.7 million for
050this next year, we'll be down to another 30 some million. And that's all we'll have left. And that definitely concerns me because if I was managing my own account and I had a business um and I was spending I was I wouldn't stay in business very long if my revenue was less than my expenditures every year. I'd be out of business in one more year because I wouldn't have any savings left. Um, that's really concerning to me. And I know that at the start of this year, uh, we talked about carrying things over. We because we had so much in savings, we were going to go ahead and keep everything the same this current year and use savings that we had, which is great. We had savings. But I'd like to know what we're taking,
051what kind of efforts we're taking to uh keep our expenditures down so that we don't eat up our savings. Um I noticed this year we did um we did reduce uh some uh administrative costs but when I asked the question about how much we actually saved by that um I was told for next year it would probably be less than half a million dollars. So, our reduction in administrative overhead, if you will, or reducing administrative positions is saving us less than half a million dollars. To me, that doesn't seem sufficient. Um, because in another year, we're not going to have any savings left, you know, in in two years down the road, if you will. We're not going to have any savings left. We're not going to have any savings to operate. So, I'd like
052it's really disturbing to me. Um, and I'm wondering in this budget, where are we showing some savings? Because looking at the figure again of I think you get my point. Two >> 37. It's a whole lot of money. Like I said, I Where are we saving money so that we will definitely be able to continue to pay our bills and continue to have a functioning school district? As I guess that's a broad question, but I don't see it here. I don't think you would see it here, but behind the scenes, um, the superintendent, and I don't want to misquote, but the superintendent is working to make necessary adjustments and, um, in the near future, I'm sure she's going to present something to the board of education on uh, what that plan of action is. What
053we did say at uh the last time we did the financial uh update or transparency presentation for the board, we said that we're the term we said we're poised to pivot. Right. >> Right. >> And so um that that plan right now hasn't been solidified. Uh but behind the scenes uh there are discussions happening about how we're going to address uh this projected um balance. >> Okay. But my concern, Miss Poke, is that what we're projecting here is some budget meetings coming up. Um and I wrote those down. I'm just wondering where I wrote them down. But there's only a couple of them left before September and then we have to approve the budget. And so my concern as a board member is when are we going to get that information because right now it's
054we're running you can say it's not a deficit budget because we have savings but in a sense we're drawing down our savings very rapidly. >> Absolutely. >> And that's big concern for me and and I wouldn't want to go into a deficit reduction plan in another year where we'd have to tell is how we are going to pay our bills. We're going to have such a small amount of money less than three months oper or yeah three months less than three months operating expenses in our savings. We're going to have to show am I correct? We're going to have to show how we can continue to function >> if we don't pivot. Um, but I'm optimistic that we are because um I'm really happy that um the superintendent and administration is forthright in presenting this
055information to you and uh showing you the challenges that wa Keegan is experiencing as well as the challenges that school districts across the country at this moment are experiencing because all of us it's been in the newspaper, been on TV, been on the radio about, you know, you you lose $80 million. Um, and and and there are interventions uh that has has to h that has happened since co, right? And so now the very difficult discussions have to happen not only at W Keegan and I keep saying that but difficult discussions have to happen uh to say these are all of the needs that we have. >> Right. Right. >> But which of those just like you uh expressed earlier which of these are we going to make a priority? >> Right. It seems to
056me we're um respectfully it seems we're running out of a little time. if I if I had a uh business uh in with my wife and we were running a deficit this year and I said, "Honey, you just have to understand that, you know, I'm going to make some changes here. Maybe things are going to get better. Um maybe we're going to make some more money. Um but we're not going to continue eating into our savings." But then the year is almost up. A year's going by and I say, "Honey, we have to continue. We're going to spend again some deficit. We're going to do some borrowing from our savings." She's going to say, "What did you do this past year? I thought you said you were going to do something to reduce your savings."
057>> I mean, to um at least reduce your deficits, you know, that if our expenditures weren't continuing to grow. And and so I'm wondering what's actually happened this past year >> except for this small projected savings of less than $500,000. And do we have time to pivot before this budget is due in September? That's my big concern. >> Yeah. Yes, I guess I'd like to all the board members. They are concerned about that. >> You and Honey, go ahead. >> I can jump in. So, you're absolutely right. Um, Mr. Riddle, we have looked at administration. We've looked at we've cut costs with food this year. We're cutting costs more with food. We've cut cost in overtime with operations that you're not seeing here. There are future plans. what I have to say the foundation of
058this is not shocking the system to where it spreads panic um and causes confusion. So there's multiple layers that we're looking at not um engaging in for lack of a better word some contracts. What I can say is that um I hear your request um and I'm looking at Kathy right now um and I can work with the board president to set up a meeting where we can walk you through um some of the discussions and show you exactly where we're looking at pulling um this money from um and where we're going to support it at. I don't know if that could be a closed session meeting or an open I it would be with personnel, but I will work with the board president to get that set up within the next week to week
059to week and a half, but we will show you exactly what our plan is. Um, and you will see how that money is going to drop. I don't want to state it here right now because I'm not trying to spread panic, but if the board president will agree, um, we can set up and we can show you the formalized plan on where we're getting this and why we're saying that we're going to be okay. However, that all can shift based on the federal government, the state, like there's some variables out there we cannot control. >> Right. Right. One of the questions, superintendent, I was concerned about is the 1% that, you know, sales tax that was a that was a good revenue stream that could help us out, but that's not going to help for
060this next year. >> No. >> And and it it's if indeed it passes, we still wouldn't get it until the end of the year, this next year. >> And you know, so it's a it's a it's a shot. It's it's a long shot. And I guess I I don't like to gamble. I'm not a gambling person. So >> that's fair. you know, and we heard from uh Miss Hennessy that it most districts don't even get that approved the first time they go out for it. So, it could be several years down the road before we could even look at that. We can't figure that or hang on to that as a as something that we can definitely use. >> And we're not we're just we know that that's a possibility. So, every possibility out there,
061we're going for there's also a grant that we're looking at with the federal government that we're going to go for. Yes. >> Um and is up to millions of dollars. It could be 500, but we're going to go for the millions. >> And so there's a lot of that, but there's also stuff internally that we can >> change the practice of how we're doing it so that the cost is not where it is now. And those are the things we're also looking at internally. Okay. >> Um flexible scheduling, right? So that we cover cost in overtime. Um just a number of areas. Um, and and I'm being cautious and speaking because I don't want to spread panic with our staff because we're not there yet. Right now, we're good for next year. I understand you're
062looking at that 2728 year. I understand that, right? So, I I want to keep everything in perspective. So, teachers are watching, etc. we know that and we're we have a plan on where we're going to pull those monies from or where we're going to cut back. Um or as some initiatives what we don't want to do and I've told the board before and I want to tell our families is we're working really hard not to cut direct services to children. >> Right? >> And I'm talking about teaching. I'm talking about sports and stuff like that. there are other areas where we can look to where we can pull back some or move some of those things that we're doing in other areas so we don't have duplication of services, >> right? >> Um we we
063talked about enrollment at schools. Do we need to have 23? You know, >> there's a lot of conversations going on, >> right? And there is a lot of things and I and I uh definitely congratulate you and the staff for you know that you're looking at this. It's just that the board is is has not been told exactly what we're what actions we're going to be taking. Um, and I know there's a lot of things you can do and we certainly do not want to spread panic or because we do have a lot of reserves and and our district has been financially strong uh for many years and and we congratulate our financial department for that. But again that you know we need to the board needs to hear because come September we do need
064to approve a budget and I and I think being fiscally uh responsible for for our district's spending I wouldn't want to in a year's time come to a fiscal cliff where we have to take some drastic action. >> Absolutely. So we are hearing you. I will work with the board president to see if we can get a consensus on a meeting within the next two weeks um so that we can walk you through our what we're talking about some of the ideas that we have some of the things we're moving on now some of the cuts that we're not actually um doing for the upcoming school year for the next coming school year um so we will work with the board president to set a date on that >> thank you thank you Mr. Oh,
065thank you. >> Okay. What is the dollar amount that we have right now? And in our in our reserve and how for how long is that money going to sustain the district? Okay, that's a very difficult question to answer, but I will answer the first part. >> Well, uh because I'm I'm reluctant to give >> specific answers when there are so many variances. Right. So right now um the last time I uh looked at this across the funds we had uh upwards of 73 to74 million that was in the bank >> and that's in reserves. >> That's in the bank. That's our cash having paid the bills at that moment. You could always look at what our uh fiscal health is by looking at that treasurer's report. We we are very intentional and and uh
066we made sure that we created a report for you that that shows you uh what is the cash balance in the funds and where we loan the money from. So if you look at it, if you look at it, it'll show you the bank balances in the middle of that treasurer's report and at the bottom it'll show you where we loan money from. in order to make sure that it was zero if it was a negative number. So, so that's important for you to look at to see what the health is. So, again, uh the last time I looked at this uh and I look at it quite often, trust me, um we we we had about 73 to 75 uh million dollars in the bank. Now, >> so >> there's some intentional moves and
067and I've shared this before. There's some intentional moves that we have so that it would trigger if I'm not looking at it, it would trigger me to know that there's a problem in PNC Bank. Okay. In we diversify. This is intentional. We diversify. So in PNC bank uh we have about 13 million $14 million sit there. We don't touch it because we don't even have our ledger associated with it but we track it via bank statement. Okay. >> Yes. >> We have uh $10 million that we invested. Thank you, Mr. Riddle. Uh we have $10 million that we invested and we reinvest. Now, you probably see that investment report where it goes up, it goes down, we lose. And I I get a little antsy because but but once we lock it in, we have
068a fixed rate. So, we we won't lose over time unless we take it out and we don't we don't see foresee uh having to take that money out. So, once it matures, we get the full value uh of that investment. Okay. So, we're working with um Old National uh financial advisor with our investments. So, that's $10 million we have sitting there. We have $14 million in um PNC Bank. And then we have our regular uh accounts that's that's um that's in Old National. So, as long as we're not going to PNC, you're we're good. >> Okay, Miss Pope, >> I'm just trying I'm just >> I love all of that that information because we need it. >> Yes. >> But I want I asked one >> pointed question. >> What was our balance? >> No,
069the sustainability. >> Yes. is how long are we able to sustain? >> Uhhuh. >> The school district. >> Yes. >> With what we have. >> Okay. >> Yes. So, let me ask >> three months, 6 months, >> two years, >> three years, >> one year, what? based upon the projections, based upon what we have presented to you tonight, um if the revenue is what we're projecting, if the expenditures are at maximum what we're projecting, um I put it in the isby document and a deficit reduction plan would not be required. Okay. But going into 28, if the assumption is the superintendent's plans would not happen, then we would be depleted. So that's why it's very difficult for me to answer the question because the assumption is that the district is going to pivot. The assumption
070is that we're going to make the necessary adjustments in order to ensure that the district remains solvent. And that's why we're presenting the information to you tonight because we we want you to be aware of where we are and what steps that uh we're taking to make sure that we remain solvent. >> And you're making that assumption because that has been our past practice. Is that correct? >> Yes. Miss Lindsay. >> Um I just have a follow-up question to clarify. So we recently um had a handful of positions, right? Going back to the the salary and um reoccurring costs. We recently had positions that were collapsed and we had positions that were closed. Some of those positions were vacant, so that made sense. Um, some of them had individuals tied to them. To confirm, positions
071have been closed, not repurposed, and we are seeing a reduction in the salary projections because of that. Correct. >> I'm going say, >> let me say it my way because I want to make sure that it's understood. >> Yeah. >> Okay. So the how we derived that that almost half million I went into FY25 and I um calculated and all of that is attached so you'll be able to see it. I calculated the salaries of those individuals that were in FY25 some of whom have left the district. Then I looked at the current fiscal year at the salaries of those individuals that are currently in those uh those positions. So if you look at 25, I believe it was 14 people. I'm not looking at it, but I believe it was 14 people. Then when
072you look at 26, I think it dropped to nine, >> right? Then when we go into 27 based upon uh the collapse uh position and or those positions that are combined emerged, right? >> Then it would drop to four because that resulted in five positions that impacted the nine. So the the between the current year FY26 and the salary uh projected for FY27 that's how I derived at the estimate at the estimate of uh a half million. >> Okay. So I'm going to repeat back what I heard because I want to make sure we're on the same page. So we went to 14 and then there was nine >> 25. Apologies but then we we ended up with nine. >> Yeah. >> So okay. So for what the board recently approved with eliminating >> those
073st those five positions >> either collapsing or merging. >> So when you say collapse my brain process is eliminated. >> Yes. Yeah. You're right. >> Yeah. Mhm. Um so those salaries we are not repurposing in a different department or a different label etc. Those are off of our books and we are not including that in our salary obligations. And so with what you have estimated, any new position that comes to the board, we have to understand that that is going to be an additional cost to the current process. So that's kind of a two-part. First, what I said was true and second, what I said was true. Is that accurate? >> That that half million approximately would be a part of that attrition cost. Remember, I reduced through attrition to 1.4. It would be a
074part of that 1.4. Okay. Right. Right. >> Can I say something? >> We're going to be seeing an increase in the real estate taxes. >> Yes. >> When will that kick in? >> Uh we get a part of it in FY27 and a part of it in FY28. >> Do you have uh an idea of how much that's going to be? >> Uh I think the increase was about one a little over $1 million. So we typically get what is the break? 49% 51 >> so it's going to come >> yeah 49% and 27 of that increase and then 51% in 28. >> So you're saying that that total increase is going to be about a million. >> Uh the total increase is about a million of which we'll get about 49% of that in
07527. >> Okay. And um part of what um I guess has contri also contributed is the fact that the real estate taxes remained level for a number of years too, right? >> Absolutely. That's absolutely because I think when we presented it uh to the board um don't hold me to it, but I think it was something like uh 60 million we're projecting that we lost because it's compounded. >> Right. Exactly. >> Yes, sir. >> Okay, Mr. Riddle. >> Yes. I just am I correct though that the um the amount of money that that we saved with the reduction of those administrative positions didn't even cover the cost of our 4% increase >> right >> for non-UN positions that was almost double that >> right >> so again yes we saved some money by collapsing positions
076but we didn't even cover the increase the 4% increase that was given just recently at the last board meeting. So again, I mean, it's just we have to we have some hard questions to address, >> right? >> In order to stay, you know, in order to keep functioning and we we certainly want to provide, you know, continue to provide good services and to our children. >> Absolutely. So that's that is so but we have to decide how we're going to continue to do that and and continue to have money to uh down the road because we can't we don't know where more revenue is going to be coming from. >> The climate that we live in is a very tough one. >> Yes. >> Um so yeah and and we're all dedicated as board members
077to ensure that our children do get good education and that we don't want to uh lay off teachers or or cut programming. You know, we don't want to do that for our kids, right? Anybody else? Thank you. Is there any more? Is that the whole presentation? >> That's the whole presentation. >> Okay. >> Yes. >> And there's other documents we have here as we go through this. The uh the the um attachment for the very last last one here is or the the F with the attachment to that is the one that Miss Pope just went through. Yeah. Yes. Um we we always I sat down. Sorry about that. Um we always attached what uh ISBY's uh proposed budget is from the state and also from the governor. We always um put on here um
078our uh position control filled positions only. That's important uh for us to denote because there's always vacancy. But when we budget, we budget for those positions that are are filled. Right. >> Okay. >> And then um the tax, we went ahead and included that so you could see what was extended uh to the county. >> And uh our profile, uh we showed you, I think it was a 10-year trend. um that most of the years uh in in the the last few years we were recognition and uh I was surprised um the last because I said our um financial profile went down and when I looked at ISBY I think with recognition still so um pat yourselves on the back because um in a in a climate a fiscal climate like this uh for our
079district to still be considered u recognition is admirable. people. So, >> uh, I wanted to to say this just because we're in this space right now. >> God bless you. >> Bless you. >> Well, I'm getting ready to run. >> Uh, just like we're uh in we're in this space right now. We're not unique, >> right? >> I mean, turn the news on across the country. >> It's not unique. um many uh school districts, many uh profit bearing uh companies are having to grapple with this as well. So what's important is for us to strategically come up with strategies to address this, >> right? >> To be able to climb above this hill, >> right? Um, we we were able to do this and I keep mentioning this. We were able to do this when
080we had um two or $3 million in the education fund. We had a negative $12 million in the transportation fund. Overall, all of the funds we had $24 million period. >> Right. >> Um, in the bank. Okay. Um, so we're not there, >> right? >> But we're at a juncture where we have to make some critical uh decisions and uh based upon um the strategies that the district implemented at that time and I'm confident that the district will implement strategies now is going to uh help us to be able to weather uh the storm. So, I do want to also say this, and I know Miss Carolina, you had something to say because I I was going to talk about um I applaud the the board's um uh increases for our most important uh staff,
081and everybody's important, but I know that you placed a priority on the instructional uh staff. Nothing wrong with that. But again, it was a board's decision to do that. And so, because the board made that decision, and that was a $30 million shift because of that decision, that also uh uh forces the district to have to make critical decisions, right? So that that decision was not just made in isolation. Uh it was made with the concurrence of the board of education with the awareness that if we put the money there it wasn't going to end there but every year afterwards it was going to go up. Right, wrong or indifferent. We're not saying it was bad. It was good. But we just have to make decisions based upon that decision. >> Right. Yeah. So, sorry
082since you brought that point up, I was going to actually say something else, but by doing that increase though, um, I think it would be beneficial to learn how much we've reduced in sub pay when we're having long-term subs because we cannot fill a position. I do know that Walkegan has become more desirable as far as teachers, you know, when they're out looking for jobs. Our pay does put us up and above, you know, our surrounding um districts, which then means we're recruiting more and not having to pay that long-term subpay or pay outside contracted individuals to come in because we now have a permanent person there. So, I think yes, we all agree that um well, I don't want to speak for everybody. I agree it was very important to do that raise and
083we need to compensate our staff for the work that they do. However, there's also some a little bit of cost savings in having a return of investment um for having those having that benefit very um attractive for lack of a better word. So then we're we're actually filling slots and not having to pay higher rates um you know on the other end. But um on that as well and what I what I mean also for the subpay because you were talking about that right we have to put the kids into other rooms and we have to do all this extra right um it's also good for our students because now they're not being split up and and losing time learning for that day. I mean, it's hard to work off a of a worksheet packet
084that day. Um, but that's not where I was going. I was going to actually more comment to the board that is um and well and to admin when we get those spreadsheets, right, where we have all of those itemized things out. That's why it's really important for us to go through them >> because then that tells us where we can look where is it that we're spending money um where in the past we maybe spent more or less and we can um that's where we can fine-tune and say you know what that really isn't a priority of the board. Can we reduce here or the priority is over here can we increase over there? Um, but in order to do that, it's also very helpful when the administration has that very clear spelled out on
085what this is. >> Um, and I know you do a a good job of that. But same even with the school improvement plans, right? Like when we know what the goal is because you guys are very strategic at doing those, prioritizing those goals, um, and then saying we're buying this to match that goal. that helps us, but that only works if we're opening and actually going through them. So, um I think this year we're going to kind of be more going through them a little bit more closely because of that. Um and that's where we can also find some cost savings like some of the we'll see some contracts that are not there anymore that were there previously or we've purchased an app that now replaces three and we're seeing cost savings there. Yes, I
086love it because um actually on that sheet that uh we give all of those details, there is a column that says what goal it is and u it's lengthy but we provide all of those details uh for what is requested at the school level and what is requested at the district level. So you're absolutely correct and it has a dollar value that's associated with um those goals for each of the different area and it has who is responsible what department is responsible for that request. Um it it should be linked at the last presentation we gave those details and I believe it is linked here but if it isn't we could share it with the superintendent and then she could send it out. But we definitely have all of those details. Uh, and it ties
087out to the numbers that we presented tonight. So, I I thank you for that cuz that's exactly what we're attempting to do. >> Miss Lindsay, >> um, I just want to say as a parent, I definitely experienced less merged classrooms this past school year than in prior years. Um, my kids not once have come home and say, "Oh, we had to join such so and so's class." whereas the year before it was quite frequent. Um and that's that's a burden on the teacher and it's a burden on the students. Right. Yeah. It's it's I I know why what happens happens. I'm just going to leave it at that. Um I do want to just give a little bit of caution with Miss Fabian your comments because our job at the board is to approve the
088budget. So, while yes, I we definitely need to make sure we're keeping an eye on those funds, if they've been budgeted and we've approved that budget, we do not have a leg to stand on to say, I think you should be reducing that cost there. >> But that's after we've approved it. What I'm saying is look at it. We got to look at those things prior to approving the budget. >> There's the clarification >> for that reason. >> That's the clarification reason. What I understood you say was when we're getting those monthly reconciliation reports, I was like that ship has sailed. >> No, no, no. When she sends out the big spreadsheet that tells us this is all the operating costs, which like she said matches that million dollars for the projected year, right, they
089have those all delineated per department >> um so that we can see exactly what they're spending money on. But to your point, yes, that that's why I'm saying like we have to go through them and make sure that the goals are aligning to also what we're wanting to achieve so that we don't come back later and say, "Well, yeah, we approved it, but now we don't want to." >> Yeah. No, I'm on the same page. It's just when you stated it, it made me picture the other one. So, I just wanted to be clear. If it's budgeted, sorry, guys, that ship has sailed. It's been budgeted. We've given our approval to say, "Yes, spend this money in this way." Absolutely. >> Okay. Miss M. >> Yeah. I just wanted to clarify too for the public
090and myself um with with Miss Valve and and yourself talking about the teacher uh increases that we gave a year year ago here. >> Yes, sir. >> That was a graduated or an equity based um um incentive if you will or it went across 20% for starting teachers. It went less as you went up. Is it didn't it to sort of am I correct or not? >> No. um that percentage was new money to the district. That's how we uh calculate it. We typically give um uh a particular percentage in the sale. >> Yeah. >> Right. And so they get longevity means they they move down. So I don't remember cuz I mean we're talking about different contract was though we didn't give >> the same percentage year after year I think is what the
091question experienced a 20 >> right cuz I I think you're saying like in year one we gave a 20% raise year two we gave a 4% >> was that across the board for everybody or was it >> that's why I'm asking about I thought he was asking how we parcled it >> out there was a variance it was it was based on giving a a larger percent to those who made less and a and a smaller percent to those who made more >> that's how we used to >> allum and and and and yes, you're absolutely correct. That that's that's how it was and and that that's why I I was going to go to 2014 why we had to abandon the salary schedule because it had uh those huge pockets >> in the salary
092schedule where certain sales if they moved down because of longevity >> got 10%. Whereas those at the top got 3% when they moved down. Right? So what happens uh this is important for the board to understand very important when you do a salary schedule okay um you have to be very meticulous with it because you're going to give a percentage in that sale. Let's say they had one year. You're going to give a percentage in that sale of one year, but you're given that same percentage in year two, three, four, five, all the way down. So when that, let's say it's a three and a half uh in that sale. When they move down one and let's say from one to two, it's a 3% increase. That means they're getting a 6 and 12% increase.
093That individual Right. So that's why it's important for us when we're really looking at this to make sure that the step increases are standard >> and you don't have a 7% a 10%. And so um Carolina you are absolutely correct. That's why we had to correct it >> because when we looked at this in 2014 that's why I was going Miss Hannity when you stopped. >> Thank you. >> When we looked at when we looked at this in 2014. All right. And I was very glad because I was transitioning into the role that I'm in right now. So, it made me become a student real quick. So, when I looked at it, I said, "Hold on." You know, if I'm giving a three and a half% on the sale and when they move down there's
094a pocket of a 7% they're getting, you know, a 10 and a half% raise >> and it's on the higher higher steps. So we said, "Okay, now we can't fix this salary schedule because to fix the salary schedule to make each of the steps equal would take us $10 million to fix it." Okay. So we agreed through negotiation and then also, you know, I mean, we had a strike. Um but we agreed but what we agreed to do was >> time please >> to give flat increases >> 4% 3 and 12% 3%. So what it did for 12 years was to control costs. >> Absolutely. because we were in a place in 2014 that school districts were going under, >> right? >> The superintendent interviewed in 2017 2018 where wa Keegan was one of very
095few school districts that had 79 days cash on hand in a climate >> talking in a climate money >> when districts were going under. Absolutely >> right. So the so so what we did the plans we did there helped us to navigate what we're doing now. So you ask the question Miss Hannah and I'm I'm very cautious about what I say. You asked the question where did the money come from? 12 years >> 12. How did the fund balance go up from 30 million, 40 million, 50 million, 100 million, >> 120 million? We stabilized increases, >> right? >> Okay. So, now we're in 2024, 2024, 2024, 2025, 2026. And so we want to address what we believe to be salary inequities in comparison to our neighboring school districts. That's a decision, a priority that the
096district made. Good, better, and indifferent. That's not our decision. All right. And so we gave um the teachers the 21 22% raise over four years. Four years, right? Cuz all of them just blend in my head cuz we're doing a lot. And then we gave 28 28 or 29% to the support staff. Good, better, or indifferent. That's not our That's not our business. Our business is to make a recommendation to the superintendent who makes a recommendation to the board of education. The board of education wanted to do it. We did it. We made the recommendation to the board of education. If you make that decision, then you have to look at something else. And no decision is a bad decision but it causes a reaction. And so here we are today. So in 20 2024
097because of that decision right our salary went up. We saw an increase of salaries of 30 million. It's in the it's in it's in the audited document. >> Absolutely. >> We saw it. Now on top of that we see that health insurance >> Yeah. >> health insurance >> went up. >> Yeah. >> They were trying to charge us for PO 18%. >> Right. And so Mr. Molton has an outside company that's helping us to negotiate that. And we fought that. We said absolutely not. We saw zeros and all of that. we we need you to work on our behalf with Blue Cross Blue Shield because that's unacceptable. And so they brought it down to 15%. But 15% is still huge, >> right? >> So compare. So we saw 15% increase there and I think it
098was 11 11 or 12% with 11% increase with HMO. So we have all of these increases that we have to contend with stuff that we cannot control. >> Would that >> all right >> would that be what our insurance says because we're still self-insured, right? >> For PO >> or PO >> Only only >> only PO selfinsured. >> Yeah, man. >> So it >> right. So, okay. Look, you just threw me for a loop right there because I >> I'm throwing for a loop every time we get the bills. >> I know that's right. But, no, I'm thinking that we're still selfinsured >> for our district only for PO. >> And it has always been since I've been here, self-insured for PO. So it would be PO, what we know as PO, PO for the
099teachers, and then HSA. >> HSA. >> So we don't even have HMO. >> We do, >> but those are not self-insured. >> Okay. I'm going to let superintendent say a few words before we close. >> Okay. >> Thank you. >> First of all, I just want to acknowledge all the hard work and the dedication of our finance team. Um, you guys do an amazing job and work relentlessly to ensure that we are staying on top of everything that's not only moving in our state but in our nation. So, can we just give them a round of applause for all the hard work? Second, I just want to acknowledge our board of education um who takes a humanistic approach on how we approach decisions here in Walkegan public schools. We made a decision not to raise
100taxes for multiple years. Was it the right decision? I still stand by it. I think it was the right decision. However, it does cause a reaction. We gave a quality teacher contract which was another decision and I ask of the board of education to level the playing field for our teachers in walkagen with those teachers in surrounding communities and I still stand by that decision. it was the right decision. As we navigate these times, as we did when I first came in as a new superintendent and had to make some very difficult decisions knowing what we had in the bank at the time and we looked at where we were going to cut. We got through that. We conquered that. We came back out and was even able to save more money as we progressed
101together as a board. We are here once again because I I won't say it's the same circumstance. So please take my words in the spirit that I'm giving them. We are once again facing many variables that are happening in our nation but also global variables as we know and it impacts what happens in the state and of course impacts what happens here at Walkagan. we are still in a good position especially when we look at a comparison of other districts and I want our staff to know that because when they look at Walkegan or you're choosing Walkegan as maybe your next home where you will be employed I want you to know that our board of education has made innovative decisions has pushed the leadership to ensure that the community could still thrive with their
102taxes here during a very crucial time when we were facing a pandemic and parents weren't able to go to work. Now, we had went through another time where we had ICE plaguing on our community and our parents and our students once again were not able to go to work, go to school, etc. So, we've had a number of challenges that this board of education has had to navigate. We have survived. We have thrived. And we have been innovative on how we move forward. And as we have in the past, we will prevail once again and come out on top because that is the Walk Keaggan way. And I want this board of education to know that we are looking at places on where we can merge return on investments. Do we need this? Do we
103need that? We're doing that cautiously now as 11th year as your superintendent because I learned in that year of two 2017 I believe it was 18 not to spread mass panic but we are not living in a bubble and we understand our reality and we are meeting on it weekly to have discussions on how we are going to get through this and we will get through this. I also want to say it's not a either or but it's a both and. So it's not that maybe we cut in one area so we shouldn't do other areas. All of our employees are important to this district. Our students cannot thrive without our teachers, without our paras, without our custodians, without security, without administrators. They're all needed to make the system work. And I want you all
104to know that and know that you are a valued member of this organization and not organization, school district. Um, and we value you and we need you and we will get through this. And the team, our principles, assistant principles, administration know what the ask is and are rising to the challenge. So we will circle back with the board president on a date where we can come to you and have those discussions that we are be having behind I don't want to say behind um in our offices um and bring you some of our thoughts and ideas that we have already started to implement that you're not feeling and that when we cut we should cut where everyone is not just panicking and I came from a system and so did Miss Poke where every year
105they were cutting And every year it was mass panic on who's going to have a job, am I going to have a job? People fleeing because they don't think they're going to have a job. And I do not want to bring that anxiety or that momentum here in Walkagan. That is not where we are. So on that note, I will turn it over to our board um president. >> Thank you, Mencio. And I just want to summarize what I understand my my takeaways from this meeting. Um, first of all, it's pretty evident that the school district is on sound financial footing just based on all the reports and everything that we see. And the one thing that I that was very evident to me as we were talking about the way the fund balance was
106increasing year after year after year, that all happened under this administration with all of you, all the same players in our finance department working to make this happen to make sure that the the decisions are being made, that the recommendations are being made, keep us on a sound financial footing. The other thing is that just based on what I'm hearing tonight from administration and from the board is that we're all on the same page. We're all determined to make sure that the district maintains a sound financial footing. Also, this does not seem like a time to panic. We know that things are changing in the state, the federal government. There's a lot of questions as to fin uh finances money that we're going to be getting or or not getting. We just we just don't
107know at this time how it's going to play out. We do have time, but we know that we have to make some crucial decisions and with us all being on the same page and wanting the same end goals, which is a stable uh school district so that we can provide the best possible education for our children. That gives me a lot of comfort knowing that with us working as a team that we're going to navigate through this and we're going to come out of this as strong or stronger than ever. So on that note, I just want to thank everybody who is so so dedicated. I'm just listening to all the concerns of the board members and you know, we all share the same ideas, the same concerns. We want to make sure that this
108school district is going to be able to continue to provide quality education for for all of our students for a long time to come. And with that, I would like to ask for a motion to adjourn. >> So moved. >> Motion by Mr. Ljourn. >> Second by Miss Savan. All in favor? >> I opposed. Motion carries. Meeting is adjourned at 7:44 p.m. >> Also for anyone in the audience, there are some Mexican food. I want to say tacos in the back if you guys are hungry.