001Good evening everybody. I will call the um meeting to order. This is the May 21st uh Madison County Board of Education meeting here to see. There's a wreck not too far from the building here and she can't get in can't get a deal to get into the building. So, Miss um Miss Quil, would you care to read her vision for us? >> Sure. schools in partnership with the community strives to with the skills to lead by example, develop and speak with unique voice and explore their academic curiosity to make positive impact and great. Thank you. Do we have any audience? No audience comments. Next, we have um the number four on our agenda is to approve from this week's meeting May 14th. to approve our minutes of the May 14th, 2026 meeting. >> Motion by
002Mr. Ruford. Do we have a second? I'll second and a second. All those in favor? Thank you. Next, we have on our agenda, we need to look at in the C program. This is our national school program. Anybody have any questions? We do this every year. children. >> Yeah, it's a it's the national school lunch program. Can I get a motion to um approve the intent to participate in the eligibility provision program motion by M and second by Mr. R. All those in favor? I motion carries. Thank you. And next we have the Markwood Show. >> That sounds kind of good. Yeah, the Mark show he's going to talk to us first about designating our fiscal year 26 fund balances. >> Right. So, uh this is the motion that we bring to you over here.
003Uh what this allows me to do is when we get down um all of our closeouts look down through there. Uh any of our items such as um POS um that encumber but we haven't paid for the items yet. sickly balance um any future personnel expenditures, any kind of obligations that the board may need to make with funds at the end of the year. This allows me to um put those on the balance sheet and carry them forward for the next school year on your behalf. >> Basically moving one money, moving things from one year to the next. >> Yes. >> Okay. Any questions for Mr. Woods? Can I get a motion to authorize our chief financial officer to designate our 2526 fund balances for sightbased carryover restriction funds obligated for purchases, future personnel expenditures,
004facility maintenance, capital projects and property costs or other items as needed on behalf of the board. >> So move motion by Miss Brock. Do we have a second? >> Second. >> Coyle. All those in favor? I >> thank you. Next is to uncommit our 2526 funds on that. Do you want to say anything on that? >> It's kind of the same thing except these were the items that we brought into the school year. Um we discussed those last week the last board meeting the balance the 50 million that's committed for items. Uh, this allows us to actually pull those in off the balance sheet into our revenue expense report so and move them where they need to go so we can pay our bills. >> Spend them the way we intended. All right. Can I
005get a motion to authorize the chief financial officer to uncommit 2526 fund balances for operating expenses for equipment special projects and for capital projects as needed to meet the obligations on behalf of the board by Mr. Rford. Do we have a second? I'll second >> and a second by Miss Brock. All those in favor? >> I. Thank you, Miss Y. >> Make it. >> Yeah, there's a bad wreck >> accident. Well, thanks. >> Right at the bottom of the hill. >> Thanks for coming on in. All right, next on our agenda is to approve our schoolwide fundraisers. State requires us to approve all schoolwide fundraisers take place. So this is um recommending granting approval for the events that our schools hold for the 26 27 year and one action so that we don't have to
006approve throughout the year. Uh this will this does not exclude the permission and approval that groups need to get from the principles and and the school buildings. that just keeps this from having to come to us 500 times a year. >> Mark, does do these um kind of already know the answer, but the booster presidents and stuff, do they do you still do the red book? >> Yes. >> Training for them, which >> I train them every year. We still mandate that they have the sponsor, whether that be a coach or club sponsor club, they have the band director and one officer is required. They are not in attendance and they don't do not attend any of the sessions I do. I did eight I think this last year. They do not attend those. They're
007not allowed to fund raise for the entire year. >> Very good. >> Richmond and B. Yes. >> I only asked because I s through those as Mr. President. >> Yeah, absolutely. So, we actually have this this particular item is for the school. >> This is around the school. So what they do inside of the school and does prevent them from time to time um our board meetings and everything and you all have to approve individual ones. So it gives the authority that as long as the principal is reviewing uh for proper rand compliance and signing off but they've done everything they need to and they then they do the fundraiser. >> And then the next item is for the boosters. Sorry. No, you're good. That way when we get to this next one, we won't.
008All right. So, can I get a motion to approve the school plan for the 2627 school year? >> Motion by Miss Second by Miss Fro. All those in favor? >> Thank you. Next on the agenda is the 2627 booster fundraisers, which is the exact same thing just for our booster. The one thing I did throw to mention, there's actually an update coming out. This supposed to be out by August, uh, the red book. So, um, that'll be interesting to try and get all the trainings in in time because the state has not released the final version yet >> because you don't have anything else to >> none whatsoever. >> Okay. All right. Do we have any questions on the the booster events? Um, so can we get a motion to approve and fundraisers for 2627?
009>> Motion by Mr. Rutherford. Do we have a second? Second. Second by Miss Bford. All those in favor? >> I. Thank you. Next is our uh to improve to approve the indirect cost rate. Um this is do >> I can I can explain it. So uh this is a prescribed uh formula by the state. Each year I have to go through this. It's based off our prior years. I go through it to look if there's any adjustments that need to be made. I have to make adjustments. Uh really indirect what you're talking about is your overhead costs cost of doing uh business things like my departmental audit those types of overhead costs. Uh it compares that against the rest of our budget. we get a restricted unrestricted rate. Um, we we charge those very few
010programs. Um, typically you charge them on federal programs. However, with our title funds, we do not charge those. Uh, we put the money back in the schools and we don't take an administrative fee off of those. Food service, we used to not do that. Um, we were forced to do that after a food service review. We required it. I don't know why. It's supposed to be our choice, but um wouldn't pass our audit if we didn't start charging. So, we do charge that to food service um for our administrative costs. And then we have some MOAs with the state um where they hire our staff, we go into an agreement, they work for them, we do all their payroll, keep up all that in. So, they do pay reimbursements these programs. offset a few of
011our costs administratively >> and we need to do that wherever we can. >> All right. Do I have a motion to approve the indirect cost rates as presented? >> Motion by Mr. Ruford. Do we have a second? >> And second by Miss Ber. All those in favor. >> Thank you. Next on the agenda is our uh bond exposure. I know the state >> this is the state's calculation of what they mandate we have to carry a bond on me as the treasur so um you can see there as the board you have chosen for several years to carry more than that we carry two million on me we carry two million on my director financial services. We're the two that are the heaviest to the financials. So, we do carry that. And in addition, we
012have others that we carry um that make financial decisions. We carry 800,000. >> Okay. This is exactly what we did last year if I remember. >> Correct. >> We have any questions? All right. Can I get a motion to set the bond exposure for a treasurer and director of finance services in the amount of $2 million and for a board of finance related positions of $800,000 for the 2627 term and authorize the renewal of these current bonds. >> Motion by Miss Coyle. Do we have a second? >> A second by Miss Frog. All those in favor? >> Motion carries. Thank you. Then next we have our 2526 revised working budget. >> All right. So um you have all the documents in front of you. I'm going to start out with a few slides. Um just
013to show the main changes. It's a little easier to see than going through the report. The big report that you have in there is an Excel version of um what comes directly out of Ununice. It allows me to put notes in there that you all have on your copies. So, uh, this just allows us a little bit of flexibility to see where some of the changes are. I had to take a beer a more concerted effort at this this year. Um, the state is pushing some language. Uh, our auditor reached out to me to say that um, anywhere that we're over in a budget item that should be written up for it. come this next year because they consider the board did not approve the expenditure. I will contest that because you all provided everything
014that we do. You approve it at every meeting. You see the financials every meeting. You know it's budgeting is not a perfect science. Um you try to get everything captured as closely as possible. Sometimes you have extra extraordinary items that come about that push things over that you didn't want before. Like we had the the transformer that blew and you know transportation costs. We might have an engine blowout that we didn't prepare for. You know, we weren't prepared. And I only get a couple of times a year to adjust this budget. Well, I've still got the rest of May all in January. That's the reason we meet so often is to make the changes to budget as we go. >> Exactly. And >> that comes >> and to approve things as you know every month
015you approve all the expenditures. So that's their new that's their new focus. Um so they're a lot of district next year. I've talked with quite a few about how to that. You know, if you're presenting everything like we do, then you have a leg to stand on because you can go back and say the board approved all these expenditures. So whether it's in the budget or not, they they approved it. It's just it's another layer. And we started seeing this a few years ago on all of our grants. They have a a program um GMAP for it but application program application being the key word they actually compare that to our expenditures and they it's basically they want it to be a revenue and expense report by year end or you get a run up
016for that. So it budgets are not budgets to them. They they don't understand the concept of a budget versus actuals and that's kind of where we're at. budget is not a >> it is not >> well and also I mean there's minimum number of times that we have to look at this the working budget and we follow the law to a tea so I don't understand why they think they can write us up for that but >> it's their new focus uh my auditors reach out to me uh you know you approved uh for us to use Patrick Associates they're very well versed in all this they were they're former state auditors they understand what we're dealing with actually have common sense, which is another good reason for working with that. But I'm prepared on
017anything that we might I've tried to get this as tight as possible so that we don't have any issues like that coming up, but something we're having to prepare for. >> Transportation is another good example. >> I mean, you know, we have to do the best we can to plan for that, but >> at any given day, I mean, you could have an engine that blows and what do you do then? I mean that's didn't >> what 10,000 miles a week. >> Yeah. >> Just >> gas is >> actually we're not even using gas. for using diesel. >> That's 10,000 a day. >> The a day the cost of that >> the cost of that plus we're already only getting >> 60% >> a portion of >> if we're even getting that. >> Well, and
018that's a portion of their calculation. That's not a portion of our actual >> expend. That's a pie in the sky. That's one of the numbers I bring to you when I do the annual report after we close out is what the actual percentage is of transportation. Um there's based on a calculation of what they'll fund you and we're getting 60 somehat 62% of what they'll actually fund you versus what the actual costs are. It they're not even the same. >> Yeah. So we're probably even getting 50. >> Yeah. But yet I need to keep every time they start a session transportation and I've yet to see it until it >> anyway. >> All right. So we'll jump into the budget changes. Um so here's a comparison comparison where we started out September. Uh we revamped
019this in January kind of where we need um all the way to the point you see now. Um, we're done May. So, um, this is your revenues. And if you look there, uh, the beginning fund balance. We talked about some of that at the last board meeting. We got some construction projects and other things that we needed to move those funds in. We're going to move them to have to bring those into beginning revenues. So, that's that accounts for your change there. and um the local we had um our investment turned out a little bit better and then uh the whopping $15,000 extra of that we got >> it's almost seven but >> so um and then our utility tax you know utility tax really hard to budget because you can't plan for the weather
020you never know how that's going to be. So, uh that did come in a lot higher than we had been preparing for for the year because we remained kind of mild and then all of a sudden we started getting colder weather, hotter weather. It just kind of all blew up at once. So, that's driven that piece. The um you know, your state that talked about that that's it hardly moved. uh federal our uh Medicaid reimbursements came in a little higher than we'd been anticipating for the year. Um that that's where that's accounted for in there and um the next piece this is our expenditure changes. So when you change the revenue balance budget so you have to come in and got to rebalance your account for that you may not. So this is broken down
021by category. If you see there we continue to focus our funds in instruction. That's where we focus our money. Um that's where your biggest changes took place across this budget. Uh we put more money into instruction. Uh and then your um instructional staff support areas. Uh we have some expenditures coming on. That's where um some startup costs um with SRO and anything we knew we'd have to have as you do getting those set up. You have startup cost. So we've been budgeting for some of those prepared. Uh and then other that's where that's your fund transfers going out. That's your other big category um there where it jump that's your money going to the construction you have to bring it into the general fund as revenue and then I have to transfer it from the
022general fund to construction so it's it's just a process that we have to go through but that's why you have where you have the increases there we had some transportation you can see it didn't quite a bit uh some of the areas that you know we've been down we've ate lots of over time this year to make sure that kids are getting transported to and from school anywhere else that we need to. So that's inflated the cost compared to where we started at. Uh we kind of go into it with a little bit of overtime in it, but you know, it's just turned out that that's where the need has been this year. Um we've had some engine repairs and some other pieces. We have the lifts that you all approved at the last meeting.
023I mean, that's uh $470,000 to replace those. I had to put those in the budget. >> Just the cost of the increase cost purchasing the buses. >> Yes. >> Forget that one. >> We were talking about that the other day when I started um in the district in 2015, we bought 10 school buses for 700 over $700,000. This last year, we spent $1.8 million on the same buses. >> Yep. started at 100,000. >> Yeah. So, you know, I've been here 11 years. In 11 years, we've more than doubled the cost of our buses. It's the same buses. We're we're not buying anything different, anything special. It's the same buses that we buy, but costs have more than doubled. It's kind of crazy to look at that and think about how much that is. And you
024impact on a on a budget and on your your operating cost. >> And it's not just transportation, it's it's everything. >> It's everything across the board for us. Yeah. >> We we we feel the increase in cost just like we all do at home. >> Utilities, we feel it there. Feeding students, we feel it there. uh you know we we have the same costs the same inflationary costs are they're hitting us too. Um so it put a strain on our budget. It's it's the name of the game and you try to prepare for those throughout the year the best you can. Uh try to go into it as conservative as possible so that we have some you know and the revenues like I said our investments came in better. They projected all the rates to
025tank for this last year. they've held, which is good for us. And it allowed us to maximize investments on our funds, but what does that do a year from now? What does that do two years from now? We hit a point there at one point um precoid I it was 18 I think it was we had really good earnings here. There was a piece of leg legislation passed on what we could and could not put our money in. Um, one of those saying that we could not buy CD in a bank outside of the state of Kentucky. Well, that really put a hamper on where you get better rates and then everybody inside the state lowered the rates. We took um a $400,000 hit in our revenue in one year. just because I couldn't invest
026and get the rates because there wasn't anything out there to buy at the higher rates. So, you know, things like that that people don't know how legislation can impact and cause um extra pressures on your budget over time. Like I said, markets held, but over this next, who knows if uh we start seeing some changes, you'll see the rates of things that we invested start coming down the lower they get. That just It hurts our budget. >> Yeah. Well, we saw that too with what happened. It was just few days before the end of legislation, legislative session, and they hit us with the $2 million. >> Yeah. >> 2.9 over over two years. It'll be a 2.9. No, I've have that for the tenative budget. I'll go into more detail as we get there. Um
027but you know the as said most of this money it's all focused for the most part it's all focused in areas that are directly uh impacting our students. That's where we focused putting the additional funds into. We have some projects um in our elementary schools with technology to get them better technology and some pieces up to date uh that you all approved at the last board meeting. So um overall that's the big changes. Um, I know you had your full packet that had my notes. Um, we can go through those line by line if you want me to or um I've summarize those. I charts really um for the most part where you need to see um any questions and think that may be the better route to take on the working budget side. any
028questions you might have on all the detail that you have in front of you. >> You do such a good good job of explaining how things work. >> Anybody have anything? >> All right. Can we get a motion to approve the 2526 revised working budget? Motion by M. Do we have a second? Second by Miss Frog. All those in favor? >> Thank you. Next is the 2627 tenative budget. >> All right. So, we're going to start again. I I did some just some small graphs just to kind of do some summary and then we're actually going to go through a little more for the tenative is uh you know, you've seen the draft. The draft is we're missing 90% of the data. The draft to me is the most useless thing we do when it
029comes to budgeting because 90% of the data is not there. We're just making estimates, guesses, best guesses based on what we've done in the past. Tenative, we get a little more data. At this point, we're looking at um we've doneations, so we know what our student numbers are going to be. Uh we know what we're projecting for our staffing to be that the funds having to fund. Uh things of those nature, so we can go into it with a little better detail. We still don't know what our tax revenue will be. Don't know what our total assessments actually are. We're estimating our AAD. So all of that, we'll get into that in more detail, but this at least it's the time to get a little deeper in the weeds and go through this a little
030more in depth. Like is the second time you've seen our proposed budget. All right. So this is the revenue side and you can see there that based on the numbers that we have uh local so that's our tax revenues and our investments is carrying 50.82% 82% of the weight. Our state funding is only 48%. These numbers will change. Uh like I said, we our tax revenue at this point. I won't know that until late August, early September. Uh once we get the numbers from the state to be able to project those and have hard numbers to actually project those local will go up because we're using this year's um and assessments are projected to increase some. So just because assessments go up, local will go up. When that goes up, as you can tell, all
031the numbers going to go down. So I would not be afraid to say that the state will probably be 46 to 47% of the time that's all said and done. So, as a district, we are one of those districts that's more than hit that tipping point where the state quits funding. They start pulling back funding because of equalization. We have to pick it up in our local revenue. Again, as I said last week, when you replace seek dollars, you do not replace it with a dollar of local revenue. You get 82 cents on the dollar. you're playing behind the whole time because you have things that have to be funded out of that local dollar. Your FSBK, your nickels have to go out first and then you also have one and a half cent to
032the sheriff on every dollar they collect. So it's 82 cents that you're trying to make up a dollar with. It's not good odds. and and every time and just to remind people who might be listening the more to simplify the more money we receive from local property tax the less money we get from the state. >> Yes. >> So it's not I think a lot of people think oh we're getting more money because our taxes went up but the way that seek formula is >> yes >> determined it it actually hurts us. >> Yes. It hinges off of the assessments which you know assessments times the times the rate equals our revenue. But as those assessments climb our seat dollars go down. That's the way the formula works. We also have another thing that's coming
033into play and this be the first big year that it really starts to kick. A few years back they passed um the carbon tax relief. So all the districts that have bourbon in their district, those are going to start being pulled from their assessments because they're not going to be taxed on those. As they get pulled out of the assessments, it changes all the tier level. So for us, where we're at on the tier, if somebody who had in our tier funding, if there's somebody based on assessments that's up above us, which allows us to get more tier funding, if those bourbon assessments come out and they fall below us, we lose tier funding. Our tier one money is going and we are well above most of those districts. So anybody above them is actually
034going to lose more tier one funding and that is scheduled to phase out by 2030 I think completely. So you know a lot of districts kind of forgot about that and that that's coming. But I've kept a focus on that because I know it's going to affect our tier funding long term and it's going to start reranking us which just means that less and less from the state more and more we have to f focus on from local efforts. And just as an example, if I remember correctly, just in the last couple of years, we've netted between our local and our seek because of what you just described more than a million dollars less in income revenue than what we had received the year before. >> Yeah. >> The local and the seek >> start
035net them out against each other. It's just >> we're getting about a million dollars less >> than we have here before. >> Yeah. And and you know the only thing that's been offsetting that over the past few years is that they've done um seatbased changes and those have helped not hit us as bad. >> But we're still losing money. >> But we are still losing money. >> Yes. In fact, for uh this school year, our seek funding is going down $381,965. this budget that I've gotten the numbers from the state. That's their projection. And that's if if I projected our assessment numbers, if the assessment numbers come in higher than what I had to send to them here, here's when we have to do that. beginning of March, I have to send them what I
036think enrollment's going to hit at and what I think our assessments are going to hit at. It's kind of a hard time to project that. Um, so, you know, if assessments come in higher than what I projected, our seat will go down even more. If AADA doesn't hit where I projected, our seat will go down more. and the tears get restructured. I think we'll go down more. All right. So, this just kind of shows you overall if we just take a highle look at our expenditures and break it down by categorical areas. Our tenative budget for this year 54.69% 69% of our budget is focused at instruction. Um the other areas, student support services, that's still focused at students, instructional staff support, they're still supporting your teachers and supporting better education uh in your schools,
037technology, those types of things. Another area focused um plant operation maintenance. I mean that that's keeping your facilities and the lights on. Uh all your utilities, everything. Student transportation, if you look at really the admin areas, those are extremely low. If you compare those to a profit organization, those admin areas are extremely low. So we are focusing funds on students. And that's the main thing to pick up from this. We are focusing funds on student. That's where that's what we're here to do. The other at the end, that's our contingency. We have to keep our contingency. So, um and we want to maintain that contingency. Um you have a few fund transfers that fall in that other. So, uh we have to match cats. So, it's contingency plus cats match. This next slide is just
038another way to look at the expenditures. Um, so you know, I mentioned that we have to focus on being able to fund thing out of current revenues and expenditures. That that that's what you have to be able to do. And if you look at this, that first column, that's our job fund salaries. Do you take it as a percentage of our budget? The salaries and benefits that you have to pay out. Utilities is your next line with utilities. All the rest of that is our other costs that are outside of those utilities, outside of your uh salaries and benefits. of your supplies and things of that nature that you pay for your softwares um all of that of course your contingency at the end. So if you don't have the revenue coming in to support
039bigger things where do you cut? These are the areas that you have to look at. So what do you cut? What do you not provide in services? What do you not provide in those categories? We're not wasting it on I mean if you look there business admin support that's my department and HR that's less than I mean it's 0.02% we're not wasting funds most of that statemandated software that I have to have to run my department and software that Dr. Brown has to have to be able to keep up with all the HR needs. I mean, so where do you cut? If your revenue can't support increases or any other things, where do you cut? So, I I think it's really impactful to see where we're spending our money. We're not wasteful in this district.
040That's one thing I'm very proud of. And this board does an excellent job at managing and making sure that we are not wasteful with our funds. uh we we want to make sure that it's going to proper areas. So now we'll take our deeper dive. You all have the same copy I have. It's the print out munus. I just pulled it in format so I can give you lots of notes down through there on the different areas. We'll kind of jump and go. We'll just start there on page one. So, a lot of these notes are as compared to the draft. So, changes since we first did this budget. Um, you know, we've talked about it before. You see this budget three times before it becomes the third time it becomes your working budget for
041the year. So, um on the the first area there, you see we're anticipating bringing in our contingency, not touching that this school year, bringing it in to next school year as a balance. You do see ited funds. We increased those from the last time we did um the budget um for the draft. That's to uh take care of basically our commitments for salaries and other things and to make sure that this is a balanced budget. We're having to use funds that are on our balance sheet bring that in and make us whole. Now, whatever tax funds we do get above what I've budgeted, we will use that to offset the funds that we bring in. We put that right back in the budget. Or if there's some of those needs that pop up by the
042time we know those, it may be that we have to still keep this coming in to our revenue. it's beginning balance off of our balance sheet that we have to put the new funds coming in towards something broke down. We've got, you know, this that and the other. At any given point, you know, when you talk to transportation, they get state reviews that come in, they look at buses. I've talked to other districts where they walked in, the guy reviewed and looked at them, he deadlined five buses just like that. When they deadline them, you can't use them. You're basically looking at buying a new bus. Well, how long's it taking us to get buses? >> Still waiting on >> Still waiting. >> Still. >> Yeah, >> we are finally getting the LA I think
043we've got two of the buses we ordered two years ago >> that we're still waiting on. And we got a better chance of getting the ones we just ordered this year. >> Yeah. Uh and we would actually those things have been closer to being on the way but the state put a moratorum on travel. So the guy that has to inspect them so they can get built and finalized on the line can't drive down to Corbin to inspect them so that our buses can move on down the line. So the chassis and everything are sitting there waiting for him to do an inspection. He said he can come in July when they open travel. So >> yeah, so you just keep getting hit from all angles, >> one thing after another there. >> Yeah. >>
044So moving on down the page, you'll see the taxes. I budget in the exact same as the working budget because like I said, we don't know what our assessments are going to finalize at and where that's going to get. So we keep that flat during the tenative. Um the one thing I did was the utility tax. Um, I increased it a little bit versus the draft because with the mild temps and everything, we it seems like it's going to remain higher. All the well, Bluegrass Energy just did a rate increase and I would say KU is not far from being on the hills. Well, rate increase that means that our taxes will hang a little higher. So that means that I needed to adjust that going into next year because that should be a pretty
045safe number going forward. On page four, that's where we start talking about seek. So, this budget um reflects an increase of the base funding to 46.26, a $40 per AADA increase for next school year. Um we used an AADA of 10,215 and an estimate of assessments. Now, the part of the reason I raised it, um, we've had a concerted effort on attendance because that's what drives AADA attendance. Um, I'm hopeful that that's where we hit. The only thing that scares me is something that came out after we had to do our estimates was that in the state calculation instead of giving us 10 low attendance when it was it low attendance or weather it was low attendance days that they've given us in the past calculation they've dropped it to five this next year which
046means that hurts tremendously because that lowers everybody's auda across the state Is that where they allow you to remove like lowest >> remove your lowest five? So it was at 10. That's huge. >> Yeah, that that is huge because it really changes that calculation. So we found that out after we had to do our estimates and it kind of I I tried to stay conservative. So I'm hoping that our efforts in attendance was actually going to be higher than what I projected. And then when we drop back for that calculation that it's actually going to we're going to be close to where I projected. >> We're excited about >> um so as I said actual ADA and assessments and transportation funding for next school year we we don't know what those will be. So promise
047you what I think with this the ten is decreased like I said by $381,965. If the assessments go higher seek will go down. Uh if aa falls seek will go down. Um and then of course we have the model laboratory school impact. So I mentioned that last week. We talked about that a little bit and I told you I'll expand on it four years ago um due to a really old interlocal agreement that was created by legislation by legislators that we had nothing to do with but they asked model and our board to sign. model used to be funded through seek. Their students were added to our AADA and we were funded that way and then we gave funds to model four years ago. They decided to make a change and take that out. They
048decided model would be funded through higher ed. Dr. Gillum at that time went and talked to the legislators and he said, "You all have to understand the negative impact that that has on county because of all of the matching pieces when you when our assessments are going up and things of that nature and you have that big of a pool of students out ADA and we're we are still left with the matching requirements. Model doesn't have any matching requirements. we were left holding that. Um, so that would have been about just shy of a $2 million impact four years ago on our budget. So the legislators got together, they talked about it, they decided to write a piece of legislation that says because of that impact that we had made, you know, we'd made gains,
049we' made salary projections on other things. They wrote a piece of legislation that said they would figure what those match pieces were. Bless you. And they would bless you. and then they would fund that in an adjustment to see back to us so that we were not negatively impact by many students. I got word during this session very close to the end that they were taking a hard look. It was lowhanging fruit for them. The only district that has that adjustment. It made it real easy for them to justify the initial piece in House Bill 500 said that we would lose it immediately. It would be gone. They wrote it with a notwithstanding clause which means the legislation we wrote before doesn't matter. We're going to do this. So they came back in the final
050revision and they decided to break it down based on the numbers they have. The calculation for the 25 school year was 2.7 million or 26 school year $2.7 million. The next school year, they're going to reduce us 900,000. The following school year, so the 2728 school year, they're going to reduce us $1.8 million. Now that calculation grows every year if it stayed static as of today. That would and they're not doing a cumulative that 900 plus 1.8. So I take away 2.7. They're doing 900 this year and 1.8 next year. Well, that leaves 1.2. It'll grow. It'll be 1.2 1.3 million still left. So in year three, we're we'll be three years down the road. will take a 1.3 approximate million dollar cut. So we're it's going to take three years but there it says
051in there that after this bianium they will be removing that funding completely. That is guaranteed >> and that is in addition to however it's a totally separate issue. >> It's a separate line item on there. So if our assessments and everything grew to where we were taking a higher local effort cut out of our seat, we would still make that cut plus this. >> So we could be looking at anywhere, you know, if if if what holds, we could be looking at close to a million less just in seek plus this money every year for the next three years. >> Yep. And then that's perpetual. it it'll be gone. It will not be there. You know, we we made plans thinking that they wrote it into legislation that makes it pretty safe. And we made
052prior commitments commitments from our people based on that money being there. That's a hard hard take. It really is. >> Um >> that's huge. >> So, you know, we're having to be creative in how we face these budgets. >> Yeah. And you know, next year, yes, the base is going up. Again, we don't know what our assessments are going to do. And we're already facing 1 million, $1.8 million being gone out of that. So, this year is one that we'll have to wait and see how that goes. Um, I that I'm going to have to stay really in touch with our PDA to see what our assessments, what quadrant he's in, what it's looking like, what kind of new um, properties are coming on the roll because first year they come on the roll, you
053don't take there's no decrease on them. There's no cap on what revenue they can bring in. You don't have the 4% cap. You know, that's another limitation that we have with with our local funding. you have a 4% cap unless it goes for a vote. No, that that's kind of rough when you have that because inflation outpaces 4% quite a bit. >> So, we have a hard time with all of our other expenditures and everything and our revenue doesn't grow at the same rate. It just doesn't. And then you're taking these kind of cuts on top of it. So, you know, it it's tough, but we face it. Um, we know what we're going into. We're we'll find ways to take care of our people and make sure ultimately that we're taking care of our
054students. As long as we're providing for our students, they're getting a great education, we we've we've succeeded on this. So, um, one thing that I don't know with seek it, next school year will be, um, the first time we see, uh, the virtual academy getting funding from it. Uh, we found that out as we got into this process that they're a year behind. You spend a year, then they make calculations based on how your students did, and then they'll give you whatever money they're going to give you for that. So you we will not start bringing money in on the virtual academy students. They don't get counted in AAD. They get counted a different way. See, so we won't see funding on them. It's kind of similar to uh special needs. Uh it's the same
055way. you do a December one child count and you know your special needs students go up August one, you have all your new enroles and everything or children that are going through the process and they finally qualify they're in you don't get funded on them for a year and a half. So we're seeing that with the virtual academy as well. How many students do you have currently? Do you know >> in the virtual academy? >> There were 126 I think the last count I had and that was back around February. >> Do we >> are you including them in this 10,215? >> No, because they are not counted in AADA. What is that? South and north. >> Yeah, they're not counted in the ADA because that's not how they're funded. >> Okay. >> Uh they
056it's more of a a pass fail. Take a statewide percentage type deal and they multiply it by the base. >> Yeah. It's a >> you lose money >> with the way the state's always going to calculate in their favor. >> Yeah. Um, that was one of the >> completion they have to complete based on their completion rate. And it's kind of it's it's a interesting calculation. It's kind of like I found out uh last school year I actually did the transportation calculations the first time start to finish figure this thing out. And what I found out is you can't figure it out. um the final calculation on it like everything I can go down there I can follow it I was following I was coming up with states numbers bam bam bam bam bam and
057I get down in the final piece and there's just it goes from it was calculated here and now it's just this number so I called somebody that fed me some as I call it underground information I said let's be for real with each other did you all just pull the magic percentage out of the air Bam. And that's what we get. >> Yes. >> That's how the transportation funding works. >> Oh, I see. >> Yeah. And I, you know, for me, I I want to know how my calculation I want to be able to prove my calculations. >> That's important to me because we're all human. I want to be able to, you know, go through KD's numbers and go, "Yeah, th those are right." that somebody accidentally mistake put a decimal somewhere wrong. I
058can't calculate that one. And it drives me insane that I can't get to that final number because they literally pick a percentage and say that'll kind of target us to what we think we want to spend. >> There you go. >> Is that legal? Uh considering that it says they'll fully fund transportation, it shouldn't be it should be illegal. But hey, you know, they say they'll fully fun fully fund education, too. >> Well, we're clearly seeing that's >> correct. So, moving on. If you don't have any questions on seek um page five, uh the federal money, we have most of our positions now filled um for JOTC. So that money will go up next year because we'll get more reimbursements on that side. Page six, um that's your Medicaid reimbursements. I brought it up because
059you know this year's being increased in the working budget and we should see about the same amount next year. I always go in a little under that compared to what we are in the current year because um it's always based on statewide percentages what you get funded. So if other people don't do their reports right or other things, you end up you could get funded less on Medicaid even though you're doing the same thing you did the prior year. So I go into that with a little bit of being a little bit conservative on. So that takes us through the revenue. Um you know wasn't a whole lot of changes throughout there on the budget side. Um, I went through and tried to catch everything that we've done. Um, I budgeted in there for our
060new SRO department. You know, we'll have a full year in there. So, we have to switch over from contracted to that. Um, we shifted some funding that can go to a federal piece. Um, that will be an equal offset of what we're bringing in to uh the general fund for the SRO's. we were going to pay for it. We just switched the funding pot. Still, it's net zero on that side of the piece. Um not in total, but as far as switching some funding pieces in there, that piece is net zero. Um the startup cost, it will always, you know, it's going to be increased because we do have some startup costs. So um you know with that we gained a little bit back because we did have safety monitor reduction of workforce uh allocations.
061We did have some increase in allocations. You saw that on last we approved those positions. Um that added um almost $400,000 in salaries for those positions. And then we did some section seven pieces in there. Uh you saw those on there as well. You created those positions. The kindergarten piece was a $200,000 budget. Um middle schools and high schools added60,000. Um we had some alternative school um areas with that change over to that new model that cost us 190,000. Uh, special ed, that's the big one, you know, and with special ed, you're dealing with case loads. We have statemandated case loads. You have to staff based on case loads. When it was all said and done, the position that you all created were special ed certified and classified. Um, that was an additional $900 to
062our budget in one year. That is a huge impact. So, you know, what little gains with your revenue that you kind of try and hope for when you're taking a $900,000 hit because you have to add staff because your population is growing, which, you know, we want to service those kids. We want to take care of them. We want to properly staff, but that's, you know, that's a big lick in one year, especially when you're looking at seating down. Um, so all in all, uh, in recurring expenditures, we added $1.6 million to the budget. So that's the graph. So that that's where I told you that, you know, we brought in more money in the in the beginning uh some of the carryover funds that we're going to need for next year. That's why that
063increase because our expenditures jumped. I did um make sure that we have enough money in there to cover our change in insurance and to project a little higher change for the following year. Uh as we know insurance costs don't seem to get any cheaper until they change legislation on that. We will not see any. So that's your big changes down through there on the budget. I'll take any questions you have. Um page 11 I did include you see the buses. I will note you will notice between the working budget and the um tenative budget there's a huge disparity you know in there. It's almost in half of what the current year but that's where we were paying for all those buses that we were still waiting on in the current year. So we had to
064get that budget up and pay for them in the current year. Next year the 1.9 million is what we have in the budget over 10 buses. I'm hoping they don't jump too high. Um on through you'll see on page um 13 that's the end of the general fund budget. You'll see there we're maintaining a balanced budget. will maintain the uh contingency at $1.9 million. Again, it takes $3.83 million to fund a payroll. That means we have three payrolls. That's only one and a half months of money. Now, some people say, why is that important? Last school year, September, October, November, we were in a Fed shutdown. They were withholding funds. We have to be able to float in those scenarios. We are likely to see another one. That would be why I would guess that
065they were recommending to superintendent to carry three months, not three payrolls. Three months, which means we can be double the 11.9. But that's why they were recommending that is because they're hearing it from from Capitol Hill. Uh, we also have to be mindful of title funding that they came real close in September and October to cutting three of our title pots that we had already started the year. We were planning on, we've made plans on. This is your good safe number. Get started. Take care of kids using these funds. And they came real close to cutting those to zero. What would we have had to have done? We would have had to use the general fund to make sure those services were met and we had people already committed for the year and we would
066had to take care of those people. We have to be prepared for that. The final line total expenditures 147,352,6605 would be the general fund budget as I see it for now. um going into next year. Again, you know, there'll be some changes going into the working budget. That's about where it's been uh for a couple of years at tenative. Page 14, start your grant funding. Fund two is how we that's what we call it. Fund two, that's your state, local, and federal grants. Again, longterm, we have to keep an eye on our title funds. um we see fed reductions, gratification of certain pots of those. So we have to be mindful of that. Our schools, you know, I said indirect costs. We don't take indirect costs on title funds. We could we do not we
067we allow our schools to take those funds and provide services to the students. We don't take any administrative costs out of that. But any So then you're looking at any reductions in those those are direct hits to services to students. Moving on through that goes um the revenues go through page 17 page 21 after the expenditures their grants you have to revenue and expenditures have to match. So we have to be planning to spend them to zero. No holding funds there. page 22 that start your district activity funds. There's only one piece that's budgeted in here. I normally don't do a budget but of this thing we're doing focusing on our budget. Had to go back uh we give our schools that's our district activity funds. Those are funds that students are not earning but
068the school is earning on their level. They can sweep over to here and uh they spend it out of the district level. So, student fees, they're allowed to keep those at school. So, when they collect student fees, they go into that and get swept over to their district activity funds for them to be able to use on their school. Uh pictures, any commissions we make off of pictures or if somebody makes a donation or things of that nature, uh your athletic funds, not in 21, they fall in 25 usually. But, you know, overall I had to budget. There is an athletic piece in there. The district commits um to help middle school programs with the travel cost of extracurriculars. So you'll see a total of $20,000 budgeted. That's just because I have to my my
069fund transfers from general fund have to match somewhere getting the money. So I have to have my budget matched. So I had put in the money to show it in fund 21 that goes through to page 25. Page 25 has no budgets in it. Um that is where fund 25 we use that to um record what happens on the school level. Student activity funds. So the monies that bookkeepers cut checks for each year. I have to do a journal entry and bring every bit of that. I have to review every bit of that line by line and then bring it into our financials. Um, so we don't budget for that. I don't know what they're gonna fund raise from year to year. So we do not budget for that and we're not required to according
070to the state on this side. You move over to page 29, search capital outlay. Remember these funds are restricted for building projects ARS. um you are required to take a $100 for each AAD student total out of your seat and you're required to put it in here. So that's one your seat cuts. It's required to go for facilities. Um you can see I projected that higher based on the higher AADA for the school year of um 10 215. So it's a million21500. They only money in theirs. You we have to allocate part of our earnings because they they have money and so we have to allocate part of our investment earnings in there. Now those those monies are to be used on capital projects. So the offsetting side of this is a sweep out goes
071to the construction and I just put a bud budgetary construction line in there because that's where it'll be used. It's just a cleanup piece on the budget. Page 31, start your next set of uh funds. Um this is called by so many things. FSBK, nickels, you know, >> construction, >> 5centent levy. You see, everybody uses different terms. It's all the same thing. So these funds are restricted for building projects and bond payments per KRS statute. On the first page there, revenues. So the state does a calculation on what they match. You have to put your money in. So with the increased assessments, we would have to put more money in uh based on the assessment totals. So I did go ahead and increase the property tax there because no matter what we get out of
072property taxes, that much money has to go in here. So if we don't net enough to increase in the general fund, we still have to make sure that it goes in here. Um I put in the state side of that of course they get a portion of our investments as well. Uh on the expenditure side it's a one line item. The way it shows up is other items but what you have are two different sweeps. You have one sweep that goes straight to fund 400, which is where we pay all the bond payments out of. And the other sweep side of this would be to that budgetary construction piece, which starts on page 34. And that's the only thing budgeted. It's the FSPK and the capital outlay combined. And it's a revenue and expense. That's
073all we budget as we'll do throughout the year. that goes all the way over to page 38 and that's fund 400. We talked about that. Um that's where we pay our bond payments funds that you have in there, your tax money um from FSPK being swept over and your match and FSPK. And then it's also any SFCC offerings that we don't give very many because they look at us as a very rich district. So the state doesn't help us make room bond payments, but that's the only pieces that would be in fund 400. You will uh potentially see you will see an increase based off of versus what I budgeted at this point because bond sale coming up in June. So uh we'll have to adjust that when we do the working budget to account
074for the bond for the new bond. The next big piece really where this budget ends um it ends with fund 51. Fund 51's food service. So every bit of that is the food service budget. We went through made adjustments for any step raises, anything like that, any equipment needs have and adjusted that appropriately. And that takes us to the summary of the tenative budget where when it's all said and done, if you add it all together, it's a total budget of $196,545,537.92. Well, I think you have um given us a a lot of really really really good information. I think some major changes have occurred at the state level that are affecting us drastically. Every single one of us up here um we're so appreciative of how conservative we are because we have to be.
075You bring us things like you just told us. We have to be. You know that so many things are out of our control. comes to particularly the revenue side >> some of it is not um doesn't make us very happy >> three or four items that really hurt >> yeah because you projected you want to do you know and just things that we weren't expecting just pulled out pretty late in the game >> very late in the game and that was the you know that piece in House Bill 500 got passed um the last day before the moratorum to where they still had veto power. The very day that they that was the last day that they could pass and still have veto power rights to override a veto of the govern. So that you
076were looking at right at the end of April. >> And this is complicated stuff. I mean, this isn't this isn't as simple as just looking at a number and going, "Look at all the money they have. It's just complicated and it takes um a lot of understanding and you do a phenomenal job of explaining all the regul >> keeping up with it and and it's just nobody likes to nobody likes to not have a lot of control and I just feel like particularly right now this is probably the least amount of control I board and and you're right. You know, we do want to do >> Absolutely. >> Um the first day our teachers are not getting enough. >> What do we do? You know, >> yeah, that that's you know, and like I said,
077you have to focus on what do you have coming in in revenues and expenditures that are going to carry you over the long term. You know, we thought we had that over a couple years, we'll have $2.9 million pulled out from under us, but you have to focus on revenues that you have. Monies can't be the long game on that. And I think that's where so many districts didn't see that during the COVID years. and they get used to those funds but not thinking that hey these funds are not they're not infinite they are finite they're going to end coming out of that a lot of them are dealing with that fact that hey I don't have a continual source I make promises based on that source being around and and it's we're starting to
078see the huge impact of what that does and it's it's not good there's pressures all across the I the first full week of May, I was at our state CASBO, our state organization. I'm a board member for that. And I I talked to CFOs and finance people all across the state and they're seeing it. They're starting to live it and they're starting to realize that, hey, we make promises here that are now affecting us here. And we weren't I've been training for a couple of years on how to make salary projections that are one maybe even two years out to see you might be okay this year, but what does next year look like >> and the next and the next. And you know, you have to really focus on that because if you don't,
079that's where majority of your budgets at. And if you don't focus on that, that's where you start seeing your pitfalls and um just training people on how to take advantage of some of the tools and mun to be able to do even that. We had districts that were guessing at what they're stepping. They honestly had no idea. and for two years now. But that's a module that I've trained on in Munis because you can actually get it to spit out what are step raises look like for the next year. And that's why I have a pretty accurate number when I bring it to you all and I say our step raises are this. >> It's an accurate number. It takes everybody rolls them up a year, calculates what the difference is and says that's what
080it's going to cost you. this shock on their face of actually being able to pull that data and see it. And I worked with a small small district and she ran that number and she goes, "Woo, come up with $200,000." $200,000 for her is huge. >> She said, "I never thought it would be that." >> And what does that for us? for us it's about 1.1ish 1.2 million for separation. So that's another thing when I'm planning a budget that's next year before I look at getting one more new dime of income that's that much in cost coming your way >> right and that's the issue. Yeah. >> Yeah. >> We We've went round. >> Well, I know there's a lot of districts in in in detrimental shape. I mean, you got districts out there that
081don't know where their payrolls came from. >> Yeah. They're taking out loans. They're doing other things. I I did I talked to a district north of us uh and she was like you know last year was a concern and she said I didn't think I was going to be able to cash flow and she called me and she said I think this may be the year I don't know how we're going to cash flow till we start getting our tax money that is concern for her >> and how do you cash flow? You're waiting on tax money to come in and then you've got all these expenditures. So, you can't outpace yourself to where you don't have cash flow to be able to float until you start getting revenues in because, you know, we go
082till the end of November before we get our first check. Well, you've been operating, you know, yes, school doesn't start till August, but we have 12 month people that on July one are in the building and they start getting paid in August. So, August, September, October, and November, you run payrolls and you haven't got your first big pot of your money in. So it, you know, it's a it's a struggle for them and they're really starting to see it and it's, you know, we talk, we talk about raises and stuff and I want to give raises as much as anybody. It affects my entire household. My wife is an educator. It it affects my entire household. So sometimes when you know he and I have discussions and I say, "Boss, I just don't see right
083now. I don't know. It's not because I don't want to get. It's because the long game is I want to protect people and make sure that we're not in a position where we have to cut, you know, FA County just came out with a list of 122 people. >> Do not want to have to lay anybody. >> I don't want to be in that position to where we're going, it's that or nothing. So, we want to make sure that we have funds available areas, funds that can take care of us and we do what we need to and we don't have to be. That's my goal. Anyway, not only that, I mean, but we're always >> we are. >> I mean, we do it. >> We just did 900. >> I mean, we're always adding
084a teacher and every time you add a teacher, you're >> Yeah. And most of the time it's special needs because you know you go into the year and you have kids at varying levels process of qualifying for special education and you might have pockets in a school that all at one time. You have five kids qualify. Well that five kids just put you over the cap. You now have to have a teacher. >> And so much of that is again we have >> no control over. But we're lucky enough if we need we can do it. 900,000 worth, we can. >> Yes. >> And we're good. >> And that's what we've done with this budget. It was needed. We found it. We're making it work. >> Anybody else have any for Mr. Woods? >> Right.
085Can I get a motion to approve the 2627 tenative budget as presented? >> So moved. >> Motion by Miss Burker. Do we have a second? >> All in favor? >> And then next we have to approve the 2627 salary schedule. Any questions or can I get a motion to approve the 2627 salary schedule as presented? >> Motion by Mr. Ruford. Second. All those in favor. >> Next, we have to approve the fiscal year 27 school activity fund budget. This is just according to red book um the all the school level accounts they're required to propose what they fundraising that's what you have for each this is the summary sheet you used to have to get individual club sheets and everything um a few years back when they made changes to the summary sheet so that's
086the summary of what they think >> you may have any questions May I get a motion to approve the fiscal year 2027 school activity funds budget as presented by Miss Coyle. Do we have a second? >> Second by Miss. All those in favor. >> Thank you. And then I need a motion to adjurnn. >> Motion. Do we have a second? Second and a second by Miss Frog. All those in favor? We are journ. Thank you, Mark. >> Thank you for the too. I really like