Okay.
Good afternoon.
I would like to call the city today
the March 28th meeting of the Finance Committee meeting to order.
Mrs. Sikka is on vacation and will not be here,
so I will be chairing the meeting in her place.
Before we get started,
Mr. Roso is joining us this evening to fill in
for a board member vacancy on the committee.
So I would just ask for a motion to approve his participation
on the committee.
This is Terry Singh, and I'll make a motion for Mr.
Rizzo to join today's Finance Committee meeting.
In a second motion.
Thank you.
All in favor, say I.
I. Any opposed?
Thank you, Mr.
Rizzo.
We will just go around the room
to do a roll call, starting with folks here in person,
and then we can do those joining us virtually.
So Lindsay Drew, school board director.
Mike Rizzo, School Board Director.
Terry Singer, School Board.
Bridget Borrowing Administration.
Michelle Agee Board Secretary.
Cheryl Purcell Business Manager.
Stacy Winslow Superintendent.
And how about those attending virtually.
I think it's just Mr.
Latham.
Yeah.
Paul Latham sits and advisor.
Good afternoon.
Okay.
The first item of business is the approval
of the summary minutes from February's meeting
are attached to the agenda.
Did anyone have any comments before I'd ask for a motion
to approve
hearing?
None.
Is there a motion to approve the minutes from February
Finance Committee.
Motion to approve the minutes?
Terry Singer. Second, Mike Rizzo.
Any discussion?
All those in favor say I. I.
Any opposed.
The minutes are approved.
There is no unfinished business for today's meeting,
so we will move into new business.
The first item monthly update of the 2122 General fund revenues and expenses.
Mrs. Purcell.
So what I have tonight altogether
is really a look at where we are now, where we are current year to date,
some projections for a revenue budget
and some requested
expense from the expense side of things requested by department.
So I want to go through that a little bit.
This and I don't believe this has been
brought forward to you in this manner before as far as just the requested.
So why I'm doing this, you know,
being new, it's something I wanted to do and just go through.
We're having department meetings.
We're going to be meeting as an administrative team.
Then prior to the April 25th meeting, which is when we will bring forward
a proposed final budget options and have some conversations at that meeting. But
and then as
but as an administrative team following all the budget meetings,
I really believe it's important to have the administration hear
what's in all of our budgets, understand it, get a good idea.
You know, I,
I can help manage the direction of the budget,
but I do feel it's administration's
and everybody's responsibility from operations and curriculum.
You know, everything that we want to see in the budget
so that over the next several weeks is really where we're going to head.
I just want to highlight
a few things of where we are tonight, some things that I'm seeing.
You know what I really want to take a deeper dive into over the next month
and make sure we get good clarity and have good direction going forward.
So that said, let's see,
this first sheet is is a summary sheet
of the last few years and you'll see my proposed final budget right there.
And that's there's a very proposed preliminary a number.
It's just where we are right now.
But I do want if we turn the next page to the revenue
side,
we've talked a little bit more about revenues.
We spent some time on it last month
and some of the options,
some of the things that we're seeing on the revenue side of things.
First on the local revenues.
So this budget and you can see some of the assumptions.
So I assumed a 0% increase on taxes.
So right now that's a zero. That'll be a conversation.
That's part of the April 25th meeting.
So the 0%. But why it's higher than
than it was in the current year is because of the growth.
And we talked a little bit about that last month prior to April 25th.
I'll reach out to the county and get a new updated tax roll
just to make sure that we're getting all the dollars into the budget
so that we really know what went zero one 2%.
You know, we'll look like going forward as far as increase.
So again, this number, this number here has a no increase in it for right now.
All the other numbers really are pretty
similar to where they were this year.
Rebounding a little bit.
If you look back, you can see I cut off 18, 19, but prior
a lot of these numbers really are back to pre-pandemic
revenue collections.
The only area that you'll see in that payment
in lieu of current taxes where I say no is CDA pilot.
That one is still on the
still has a question mark by now. Dr.
Winslow and I do have a meeting scheduled that we're going to be meeting with h.r.
Two to talk about what their thoughts on the future of the pilot payment.
So we will have that coming forward for the next finance meeting.
So that meeting is later in april.
They had said to give them through the end of march
and let them get their numbers together
as to what the hotel taxes are looking like.
So I can share, I'm sure
the county commissioners, the township, as well as the district,
we're going to try and put as nicely nice pressure on them to that.
We have an expectation that we get the full pilot back.
They won't go back and fill backfill what we didn't get for the last two years.
So we want to make sure that we are
pushing a little bit to say, you know, okay, we're back.
What's the plans for next year?
So it's
but until we know that I didn't want to I didn't want to put anything in here
again, we'll know better
by the end of April or at least you know, and then we can have that conversation.
What does the board feel comfortable with from a from a position from what we hear?
Again, I don't see anything else really
changing a whole lot in our
local revenues.
State revenue,
if you go down to state mean.
Can I just ask a question real quick about the local looking at year to date
for the 2122 budget compared to obviously
where at 101.7% and that's increase,
where would the like $600,000
that's been collected above budget come in?
Is that
that would have been
and and a lot of times that comes in through interim taxes
but it could have been if it didn't make the tax roll before we budgeted last year.
I'm not sure what number was budgeted.
But if the tax roll. Of appraised values increased.
Or decreased asset value, right, if the number that was used in the budget
last year was early and there was because I'll usually do another
tax roll at the county level just to make sure they've got everything.
So there could have been additions at the county level that were in the 71
taxes that went out that weren't in what
the school district counted on, because there's always that change.
They're always trying to get as much in, which is good.
They trying you know,
they try and get as much into that before they print those bills.
Right. And obviously, the amusement tax is
returning.
So, you know, we had conservatively budgeted for that worry
that it wasn't going to come back strongly enough.
And we're at 145%. Right.
So I really think that that number can even go higher against
and a little conservative at this point in time.
But we'll keep watching it.
There will be another month.
I have seen I mean, the amusement tax, the hotel tax
is actually well, the hotel, but
they're back to pre-pandemic levels.
So everything really is on track.
So, you know, if we if we looked at that line
and want to take that
could go back to other years.
It wasn't I guess 2021 was obviously was not a good year.
It was at 1.4 in 1819.
You know, so we could possibly but, you know, most likely
take that 1.1 million up to a 1.4 or five, depending on the strength of
the next couple of months
in this. Remember, this is as of to 28.
So there you know, there will definitely be more coming.
Could you explain what the admissions line is?
Admissions is gate revenue Okay. Or
anything else we would charge for?
I did not
look at the detail, but that's typically what that would be in that line item.
Okay. Thank you.
And yeah, so I'd just move quickly past local anything else on local revenues.
And what is fees then?
Fees are
things we would charge students, I guess parking.
I'm thinking back to some of my past.
I did not look into details of parking.
So so internal to our our students.
Sounds like it's.
Student Yeah, it's student charge fees
that should be
which I thought actually looking at 93.
So there's things I definitely as I'm
pulling these numbers together, do you have questions in my mind
just for lack of time and getting up to speed on everything?
I really do want to go back and look heavy at some of this detail because it
I think, Terry, to your point, that is a little high in my mind
from a couple of years ago.
So I want to make sure that we're getting things in the right bucket,
so to speak.
Anything else on local?
We go to state.
I think the biggest thing I can say from state is still the
that the governor's budget.
What's going to happen with it.
I mean they
when it was originally proposed, I mean, we're looking at almost
a 30% increase, which everyone is saying do not put that in,
but expect something.
So I know what a lot of districts are doing is
is building in the percent increase that they received a year ago.
So that's what this represents.
So if we were to actually and I can tell you for the basic
and this goes for basic ED funding and the special education funding,
those two lines items, those come directly from from the governor.
And I think last year these were actually budgeted a little bit low.
So, for instance, basic ED funding, I think this year we're like about 3.2
and special ed is a little higher than that 1.5.
And it's always sometimes, I guess, because the governor's budget,
a lot of time has passed after the school district lands on its final budget.
So the timing of it is is a little questionable at times.
So I'm going to keep looking at that.
I'm not you know, I'll keep listening to what our
our paths go.
That's who we really rely on.
You know, school officials who are really up there
and talking to the legislators and getting a better feel for
where is this headed, You know, what do they really see?
Where the where is the governor going to land on this or it's not really
the governor.
The governor is proposing move, but he's going out.
So businesses,
this is his gift to everybody on his way out
and everyone saying that's not going to happen.
So it's just a matter of where it's going to fall in the middle.
And it's been pretty ended up pretty flat the last couple of years.
I actually did get some more money back in.
I think they were able to to fund that line item a little bit more
so that 10.5 and 8.7, those are pretty high
because it had been historically running at 4%
to two schools.
So and again,
that was just looking back to the increase from two years ago to what it was.
So that that's subject to change
right now. This revenue is showing.
So the two things, the Social Security Basic and Social Security, that piece
that 1.192 as well as the last nine, the state share retirement contributions,
those strictly are 50% of so when we budget and we'll look at that
a little bit later the salary and benefits.
So when we pay 100% of the expense,
which is your Social Security and Medicare
and we pay 100% of the retirement, in return, we get 50% back.
So this is just represents 50% of what we budget on the
expense side,
everything else is pretty standard.
I will be meeting with
Steve Bell, who is our director of transportation,
just to double check that transportation subsidy.
I did not change that at all, but that it doesn't change much, that it will be
very minimal.
If anything,
there's a line item
two, line 47, which is a state property tax reduction allocation.
That is the
that comes straight from PTC.
They will give us that number in April-May some time.
I think we get that in April.
So right now you can see it doesn't change much.
It'll be 60, 70 something.
So for now,
there's not a whole lot we can do for state.
Any questions on state revenue,
federal,
we go down to that title one, two, three, four.
Those are just our actual allocations for 2122.
We will we have not they have not opened up yet for next year.
So I don't know.
Typically they'll be in that ballpark.
So again, it's
always fallen on just budget what you have for the current year
and that's why it's a little bit different than what you see
because again, sometimes those numbers come in late,
but the numbers that you're seeing there are where we're at prior
to any funding adjustments, which they're late on that to.
And I know you've spent some time talking about the Esser
so that other CARES Act funding that is the Esser three.
So that's the third allocation of the federal CARES Act.
So the American Rescue Plan,
our total was
over 4 million.
So that 2.19 through there is represents the 50%.
So we have planned as a district to spend half of it
in the 2223 year
and the remaining 50% in the 2324.
It all has to be spent by September of 24.
So where we will do 5050 and that is going to be spent on them
to offset some salary increases.
Cheryl, the title one and two,
the year to date versus budget.
It's always a reimbursement.
We pay.
It's just a matter of timing.
It's timing, it's salaries.
So till we submit and they reimburse, that's that's really all that is.
Okay, thank you.
It's on a schedule, but it's always late
and that's a that's an easy one.
That's a given.
There's not been any questionable
timing as far as you know,
when or if we get those that money back.
And same with the CARES Act.
Answer two. Yes
and the other on the other part of revenue.
Then and this will again be a conversation board discussion
at the end of April as we go forward.
If we look down to the other section
and the really big part or that driver is that permanent fund trust
permanent fund transfers, rather, which is the Milton Hershey Trust.
So as we've been talking, it will look to be this current year.
Why it's so high, the 3.06 to
that is 7% of the trust balance
as calculated by Fulton Bank.
This 2.287 is an estimate of what 5% would look like.
So that will be a conversation.
Do we do four or five?
So when we bring the proposed final budget forward.
So again, at the April meeting, we'll kind of come out of that with
how do we want to build that proposed
final knowing that things can change until the final in June.
But we will have a board vote May 9th
on the proposed final budget.
So coming out of that, so up to two more votes at night,
one will be the proposed final, the other one will be as a board just to
have everybody in favor
of what that percent request from the bank will be.
And then I've been talking to our advisors from Fulton.
We will just kind of
let them know coming out of that meeting
they will be able to do their work on their end.
And that number like that 2.2 million to 87,
that was just our estimate they will take.
What they do is as of March 31st,
they do cut off a hard cut off on their end
and then they will do the four or 5% calculation minus fees or whatever,
whatever they do, they will let us know what that number is
for sure.
So I'll get a better number from her to what that number might look like.
But again, that was the number they gave us last month.
So just as an estimate.
So again, that's those are kind of where
some thoughts on what the revenue side might look like.
We'll keep watching it make those changes.
You know, if we see things like that or things going south, state,
whatever, we you know, whatever we see, we've got time to make those changes.
Anything else from a revenue standpoint.
Before we go forward into the expenses?
I do just want to note, Mrs.
Agee, for the minutes that Mr.
DAVIES, our citizen advisor, has joined us.
Okay.
Well, I'm moving on to expenses.
I don't.
So that's the second part here.
I don't want to spend a ton of time on this one
because I do have I want to spend a little more time
focused on the department, expenses broken out a little bit different.
This spreadsheet is broken out by function, which is is high level,
more programs and what what area of the budget.
I don't think this gives us a whole lot of good talking points
or understanding of of what's in those or what's really driving the expenses.
So I want to get to that slide.
So again, this is this is just here for you every year
just to at least make sure we tie out and look at the 228 numbers.
However,
if we go to the next sheet,
which I believe is
the next item into the budget discussions.
So the first one would be that department area requested budgets
again.
Now understand these are requested budgets.
So I think some of the struggle
for administration maybe not struggle,
but coming out of COVID.
So there's been a lot of two years ago, everything to intro
March of 20, everything shut down so that that year didn't end normal.
So the 2021 school year, I
didn't know what that was going to look like.
A lot of changes with programing and then kids in or out,
you know, in-person out side.
So that was a little bit different.
So it's been a little hard for for fiscal 2122, the message to departments
and administrators building their budgets was, you know, hold or cut 10%.
I believe that's been shared with me.
So a lot of the 2122 budgets were actually less than
going back to two COVID years.
So, you know, to pre-COVID, rather, and a lot, too,
because 2021 with so much being virtual, there was a lot of leftover consumables.
There's there are things in buildings that could be used that that were sitting.
And so it really helped the budget absorb a lot of costs.
It didn't have things.
It didn't have to be replaced in this current year.
So now we get to 22, 23, which we're sitting here
with 8% inflation costs skyrocketing.
So people have done a really nice job of getting those quotes and everything.
And but to replace a lot of
what is now
depleted, a lot of that, you know, those items are depleted really have to be
replaced.
So I think what I'm seeing
in the 2223 in the conversations I've had to date, again will continue.
Those. But it's really
everything that stopped a lot of the professional development
type requests, the trout, you know, the travel
again, replacing consumables and just the expense of what things
cost knowing we're all unfortunately, we're all we're all seeing it now.
The revenues are not going to jump to match
the climbing costs.
So that's where we're going to need to do some balance.
And this where I really think
this administration conversations will be important will bring that forward
to you and share as much at the April 25th of really, you know,
why we made some of the decisions we made and this is where we're at.
And then, you know, if there's any other,
you know, board weigh in or thoughts or, you know, direction on some things.
So these areas and I have another spreadsheet
and we'll get into the salary benefits.
There's a couple of areas I can touch on a little bit.
Just things I'm seeing as we start to do some work, deeper work on it.
But these are the department areas. So when
we say department, send us your budget.
These are the areas, these are principles, the directors,
this is who's building our budgets.
Now, I will say so the business manager one and everything underneath
it was everything that the business manager would have built out.
So a lot of that debt service.
So there's things on here that really we can't change.
We don't have any we really don't have a choice with.
When you're looking at debt and you're looking at
things that are mandated.
So we'll get to, again, get into salary benefit,
a lot of that that's mandated by the contract.
It's mandated by tax law, it's mandated by covering insurance costs.
So a lot of salary benefits, which is our biggest driver of the budget.
We can't change
light owns like transportation
that can't that can't change that's mandated by contract
and the need to get kids where they need to get.
So, you know, those costs are very limited.
And and I will share I have something further to go on to tuition
because I know that that's been you can see that line item number 27, line
27 has really doubled in the last couple of years.
And that's a factor of of outside placements and students
not either not comfortable or realizing they're not comfortable coming back
or just realizing they're more comfortable staying home.
So those are some things that we're thinking, too.
So that's the the biggest, I think, in the conversations
we're going to need to continue to have to.
And I know there a little bit of conversation
about the state of food service.
I mean, we're still waiting to hear if the funding is going to be there
from a federal level because it's still, you know, free meals
that could change significantly.
Whatever happens with that will change significantly
our foodservice operations and budget.
So as a district, do, are we going to have to fund even
beyond that?
I just left the 150 and which is comparable
to what's in the budget this year.
We have not made that transfer yet.
They've not needed it. We'll continue to watch it.
That's there on that as if if needed kind of basis.
But that food service transfer we we might need to step up
more as a general fund and support
operations in that area a little bit more.
And then the cap reserve, again, that cap or reserve will be critical
because we did
we talked about a couple of months ago, the fund balance has has dropped off
because we've taken some negatives and we haven't.
As you can see, last year we did not fund
cap reserve at all last year.
So that fund balance is down to about 6 million,
which when we're looking at a 120, $140 million potential building project,
we definitely need to start beefing up that cap reserve.
Ideally, if if we can even get more in that cap
reserve line, you know, we do that.
The one thing is once it's over there,
then it has to be spent for cap reserve.
But we just want to keep an eye on that, just that we do have significant
capital reserve needs coming.
So I think that line item needs to stay at a minimum at that million dollars.
Can you address and maybe Dr.
Winslow could can share to from the curriculum side
remind me why the budget was so low for curriculum in
2122 compared to previous years?
Because I think it would give it a false sense of increase.
I told people they weren't allowed to buy anything.
Okay, remember, the math books are in there,
so that's 150 plus all the extras that go along with that.
And I'm not Dr.
and I have not met soon to be.
Yeah.
There was also no
for 2122 we.
Did allow people to attend some.
Virtual conferences which would then just be the fee,
which is, you know,
and I and I told people they were not allowed to budget
for anything that cost more than $250 unless it was an AP training.
Those are always a little bit more expensive.
There was no travel at all.
So coming into this year.
Returning to them or.
Returning to travel and for example, AP conferences are back to in-person in
this coming summer.
So you're talking about a week long
training, usually on a college campus somewhere.
So it's not like luxurious
accommodations or anything, but it does have a more
significant expense than no travel.
And that that is
one of the areas that I've been seeing.
I really want get to point that everything's in the system
and I can drill down on
give me all my travel in one spot because right now it's in separate budgets.
But I think we're getting to that point.
You know, I want to see those areas because,
you know, it might be a conversation that we were going to do travel,
but we've got to prioritize it by, you know, what is identified
as has really good training that we want our staff to get to
it. I think people are excited to get back out, let's just put it that way.
So I do think there's a lot again, this is just as requested.
So the principals have taken the request from their teachers and we might have to,
as an administration, kind of look at some of those requests
just to make sure,
you know, just to make sure everybody's on board with who's going where.
So those will be.
And I didn't want to start picking and choosing at this point.
I'd rather like let everything as is have the meetings and then turn around
and kind of really regroup on it.
But a lot of the other line items,
especially like for the buildings, you would.
Not. You would attribute those increases to
things
coming back that weren't there before the increased costs, field trips
that are going to cost, you know, more and having to look at that,
you know, decision point as the budget gets closer to final.
Now, you know, there's supplies.
And so now what I'm hearing and again, I want to go back and assess is,
you know, what we can do is supplies are just really
have escalated I think combination cost where we're at today.
We did deplete extra stuff that was sitting around from last year.
So, you know, I think it's a big combination.
We'll just going to have to make sure that at some point,
do we still try and limit, you know, what what do we really need?
I think everyone's just excited to be back.
So I want to make sure
that what we're bringing forward is at some point what we really need.
And we've stepped up still the nice to have
because that's kind of that balance.
There's there's a lot of needs and no doubt and then
there's some big wishes too.
I know for the high school, actually, if you look at the high school
and that's that's up considerably
there's some there's some wishes in there that we've already talked about.
So it done anything with them yet.
But there is a $41,000 sign and that's been a big
issue, I understand, with the community
and but that the signboard has not worked and has not worked at all this year.
And it's so old we cannot get parts for it.
So that 41,000 in my mind really needs to stay in there.
But again, all the conversation that we have.
And on the benefits
line that obviously we're self-funded and so we gauge some obviously
a large part of that is just the calculation,
you know, of of costs as self-funded insurance. But
is that increase also a projection based on
what we've, you know, the trends we've been seeing of costs?
If you go to then to the next the next set of documents is the
salary benefits.
So on here and I'm.
Sorry, huh led you right in under the you did something perfect.
Nice transition.
Well can I, can I ask a question on
the expenses?
The Dauphin County
Technical School Debt service.
I don't know why I thought that we had
we were fully bought in on
on the technical school and didn't have any further debt.
I think when they.
They must have done a bond refi at some point or new money, I'm not sure what
what they did at one of their campuses, but I know that we had it at Lancaster to
okay.
But then we get we get a portion proportionate share of there.
I'm sure there is something that I just carry.
I think that I'm recalling that
our number was higher
and it must have been prior to the years listed on here
is remember when Harrisburg
increased their share, we got a few hundred thousand dollars back.
Yeah,
but I but that
what was still left over was what was our proportionate share.
Okay. And that's still,
that's capital expenditures.
It's not to that was for the renovation
or the addition of you know, one of the parts of the buildings.
Okay.
That you're right that that is
that is separate that was just for a capital project.
Right. And then the other question I had is with
the cost of our students that
go to the technical school, is that covered.
That will be under tuition.
Or tuition.
Okay.
And we'll get to that after something in benefits.
Okay. Let's do that line item.
And just to keep in mind, I don't know what the ramifications will be.
I remember seeing something from Mrs.
Secker recently,
some report on some activities she's involved with at the technical
school related to tuition and how it will be assessed.
They're examining,
I don't know, for to take place at what time,
whether they're talking about starting July one or
but I remember seeing something.
I think it's. Admissions. Yeah.
So it's it's not tuition it's determining how many students,
how many students from each district.
Have a seat. Okay. Okay. Sorry.
No worries.
They're just working on making policy match.
Practice.
Or practice Match.
Scratch that question.
Maybe I have not seen anything yet.
Is updated numbers for
what the tech school is building into their budget as increase.
So we're about half a million dollars roughly.
And again, we'll see that in a couple of pages,
but that's about the cost of our tuition expense with.
Okay, thank you.
Yeah, I was just going to say
if they were looking at any potential for an increase,
but she was still finalizing the budget.
But I didn't have any figures as to what that was going to look like
for the sending schools
though. Thank you for.
And there have been a question at one of the last meetings
when we approved the the hack budget
or the the agreement with hack is that inside of the tuition line.
Yes. Okay.
There's some detail on that.
But that's about 130,000. Yeah.
Thank you.
Anything else on this particular part for now.
And again we'll get some more details
and really some of those big drivers.
So with Kayla, I guess we're
expecting a
big increase.
It has jumped up.
I actually talked to
Lara Wade this morning and we are going to have some follow up
conversations about she's got some ideas about hopefully maybe
getting some kids back or to a part time that we could save some of that
that expense with the IU.
So that was that was again her her projected number.
But that is an area that I want to delve into a little bit deeper
with her, just to see if,
you know, there's an opportunity to pull back or where we're trending.
I mean, that's a pretty big increase and that's if it's warranted, it's warranted.
It's just a matter. Of I don't know.
And I'll be interested to see in talking to her.
I think her concern was this year was not high enough that
so we might actually exceed the one,
the 190.
That's been budgeted for this year.
Well, and correct me if I'm wrong, but hadn't
we initially been planning so when the budget was done last year,
when we were looking ahead to 21, 22 and what the virtual options would be,
secondary was slated to be the
zooming into classrooms and only elementary school was going to be Kayla.
So when that ultimately ended up shifting
to Kayla for K 12, that would have added an increase
to the Kayla expense that was not budgeted for
because
it wasn't the plan at the time budget was done.
Yes, and thank you.
She did mention that it is now that it is a K-12 program,
it is increased costs for students across the board that
dissipate in the past.
Just last year was $44,000.
Looks like
what, now?
Two years ago.
I'm sorry.
That never seems odd to me again.
There's some areas that idea.
Which in 20, 20, 2021
and any student who was attending virtually
through, you know, our our COVID instructional options
was not through Kayla, but through the district,
into our building teachers.
And it was, you know, in building instruction.
So 21, 22 was really the first year that we had any of our students
for pandemic related reasons, attending virtually through Kayla
before, that it was just students
who were using the Kayla option.
But it was minimal in numbers compared to,
you know the last year and a half of school.
So I think combined with
that plus
the secondary virtual instruction not being budgeted
for as Kayla because of the post budget approval change,
that's why we would be seeing that difference.
So it's something we will look at it.
It might it might be containable.
It might not.
Yeah, I think she said there's about 44 students participating right now.
You don't know the per student cost, but
that's sort of the idea for the projection
for next year.
Thank you.
Anything else on this particular spec sheet
or we can move on to the salary benefit side of things for salaries?
And again, this is really this projection is using
an estimate percentage increase
based on increases in the contract over
the 2122 budget.
So it's not it's not accurate as it could be will be.
So I will be working with,
you know, h.r. To
identify, you know, the actual seats, the increases, the people, the changes
that happened this year and make sure they're reflected in next year's budget.
Just to get an idea, i want to make sure who's, you know, I.
I also want to understand too, like the classifications
those the 111 121 those are the object postings as per PD.
So I want to make
I want to see where
where salaries are posting and who's in what category kind of thing.
So it is an increase, but that's again,
that's just a percent increase over budget, which it's not too far off.
We've been pretty much in that 30 push and $30 million salary number.
Now that's just the base salaries come down a little bit.
Then those are the extra,
extra, some extra hours.
That's pretty much of the the salary piece of it.
I think the benefit side,
Lindsey, your questions earlier, if we go to the benefits sheet
and that's where so the F like a medicare that is that in 7.65%.
So that's this is where we recognize fully that 100% of these costs
and then we get the 50% back from the state after the fact.
Teasers next year will be 35.26.
So as a percent like that, that again is just
35.2% to 6% of payroll,
that number will change
as our payroll changes,
tuition reimbursement,
that's what we pay back to staff who take classes.
And it doesn't change a whole lot the area.
So the medical line, the 271 medical, I'm estimating a 5% increase.
We do have a so I think you remember that a board
approved contract with Air Allura Group, which is our consultant.
We will rebating them with them.
They're going to be bringing forward updated numbers here early in April
as to what
percentage increase we've really seen and what their projections are
to really get a better number in there.
So i'm using 5% just
we are trending a little bit higher than we had
been,
say, for dental with that's that is the big piece of it's the medical.
So that's again right now just estimating five.
But that will we'll get a little more clarity on that one.
Any other questions on
the benefit side of things.
We do have reserves, though, on the insurance side.
One of our restricted accounts.
That committed fund, the.
Committed fund balance that we have in place,
so that as self-funded insurance, you know, if we would have
a much higher number of
claims, you know,
that are hitting that stop loss insurance number,
we have that there for offset right.
Right. It's just it's right.
Is money kind of set aside in our total fund balance
that would cover it.
So it's it's
it's just something to watch and again there's nothing we can do about it.
It is what it is.
Just want to make sure that we do budget for it
and that we're putting programs in place.
I mean, I know that there are some initiatives
or some things that we want to do in talking with them that I think we can
we can do some
greater managed care things or, you know, offerings.
Nothing that we're putting restrictions on on staff.
But 5% is the average.
And we typically expect to see those cost numbers in the budget
increased by 5% each year.
So that for right now is just the estimate.
And again, these are a lot of
there's not a whole lot of wiggle room in salary or benefits.
It's sort of it is what it is.
It's driven out by the
increases per the contract and,
you know, benefits those
that are in place.
There's not much to do different
but wanted to look at it just so that, you know, everybody at least saw
what was coming forward and how it's how it's built and the impact of it.
Anything else from a
salary benefit standpoint.
So then the only other area I really wanted to look at was
did want to look at tuition a little bit early because it is a big
it is a big driver of the budget.
It has significantly increased.
And I know it's a concern of all districts.
It's a concern it's been a concern from the state level only because
there's nothing we can do as a district to stop it.
We can try and work with our students, with their families, to encourage them
to come back, to stay with us, to be part of our programs.
But it's totally free choice.
And should they choose to go, we get a bill and we pay it.
The problem is the
the way the PD 363 is determined.
And I don't know how much any of you have heard about this conversation
at the state level and all the
trying to get some legislation in place for some charter school reform.
What's really driving that is this PD 363, which
we as districts need to do in
the summertime kind of area, but it's based on our budgeted numbers
for this for the year, which
when you're basing
payments to charter schools on your budget
in numbers, you're not allowed to go back and just we used to be able to
they used to give us some wiggle room to go back and adjust to actual
and it helped a little bit, but it doesn't anymore.
So we're locked into these costs.
If you go to the tuition,
it's the PD 363.
So this is just a history,
just for awareness.
So in 2122, we are actually paying for an on special education student
who goes to any of our cyber charters, the 13 three and it's 27
one for a special education that's based on, again, our budgeted costs in our
in our budget.
And then that's what we pay them.
Which that's for one student.
That's for one student, right?
That's our spend.
That's our spend in the district for one student.
So that is the equivalent payment that's owed to a cyber charter
because it's currently determined reform.
It's currently determined that that's the amount
the district spends per student is passed on to the cyber driver.
And it's it's really difficult for a lot of schools to
I think that the problem is is this this was written into school
code in 1949 and nothing has been adjusted to give schools any relief.
So schools are paying exorbitant dollars
to cyber charters who don't have brick and mortar.
So our expenses cover our overhead, cover our facilities,
electric cover, everything that we pay.
And those costs really just aren't there, you know,
And there's there's hasn't been any oversight at the state level
as far as like there's testing mandates and things that schools are subject
to that charters really don't have to follow.
From my limited reading of the proposed
reforms, none of them address this issue as far as I could tell.
None of them address the the cost issue.
The governor's like he wants a 999.
Yeah, 94 nine and change flat fee for all students to get, you know, four.
So there's no question.
I didn't I didn't see that And.
That's one of the leading arguments for the reform is to
is to cap that reimbursement
rate to kind of make it more in line.
And because one of the big things is that,
as Sheryll was saying,
the difference in the cost, you know, the brick and mortar expenses,
but also how disproportionate it is, you know, our expenses don't reduce
proportionately for one student because we aren't
removing a teacher or, you know, any other salary positions
for one or even 810 students compared
to, you know, the funds that are being transferred over to that.
So a portion of each one of those 13,000 per student is going to something
that is not decreasing on our end until we lose that classroom worth of students.
Right. Right.
So you're saying part of the governor's proposal
includes capping on both non
special ed and special ed?
He is it it would it's my understanding
is it's it's it's across it's a flat it's a flat charge.
It's gotten a lot of
pushback from it.
There's a lot of
there's a lot of lobbying money to keep this structure.
Because like I said, the summaries I've read just in the newspaper
don't mention these caps at.
All. It's been talked about for now.
I've well, and I think if you recall to Mr.
McFarland, our previous superintendent was a big advocate
for charter school reform because you know of that impact
and just because of the lack of accountability around the use
of taxpayer dollars for charter school, because so many of them, you know, do
very elaborate and extravagant advertising using, you know, taxpayer dollars.
So I think just trying to level that playing field so that
the choice really is there and fairly so.
You go to the next slide.
So the next some of the questions we were talking about earlier
to make sure we get through this is so each year when we do our ACR,
which is the annual financial report that gets submitted to PD after the year,
there is a special schedule in as part of the report
that identifies and breaks down all of our
So all of our object five sixties is where tuition goes.
So these are the different kinds of things.
So in there you will see like if we send students to another LGA,
if we the cyber charter obviously is our biggest one.
You see a line item for the CTC
approved private school.
So if we have a special placement, that's where some of those would go
to juvenile detention centers.
So the state really captures all this data from all of the schools
and wants it and wants it broken out by regular education
and non or
special ed and non special and basically regular special education.
So that's just an idea for each year.
So you can really see like we were very flat at just over a million,
you know, 1.1 up until last year and last year went to 2.4
and we're running pretty much close to that right now?
We're already at 1.5.
And a lot of those costs do come in late in the year because we'll get
some heavy reconciliations and things we'll just keep paying because they
they break it down over when do break it down over over 12 months.
But because that's another great thing is if they no students
coming in September they can start billing us in July which.
And then you have to
go back and kind of get that reimbursement right.
Like if a student transfers back into the district.
There's always record.
It gets prorated.
So it's, you know, so anyway, and then that other tuition
not included elsewhere that is the hack payments.
So everything is is is captured on here just as everything else has been pretty
flat for the most part.
It's just that cyber charter line that's the one that we and unfortunately
we don't have a lot of
control on it.
Looking at our year to date, obviously
versus budget, we're significantly up on that.
Is that why you would be
looking to propose such an increase in the budget?
Well, for next year I'm.
Thinking so only because if I looked at year to date three 3121
we were about 118 and 1.8
and this year we're at 1.5.
So, you know, we're we're almost at the same.
So I was thinking we might not get all the way to where
we were in 2021, but I wanted to get more because we're definitely
we're definitely going to be way over budget this year.
So I didn't want to be that far out of whack next year,
you know?
And if we see that trending down or, you know, I'll keep watching another month
or two and see, but I really think we're on target for that.
The CTC,
I just I would I would propose that we budget similar to this year
until we hear different from from them about anticipated costs for the next year.
Okay so that's
what's in and that's what I'm seeing in the tuition room.
Anyway.
We have about 5 minutes left
and I know we have the contract item yet to review.
So does anyone have any questions about any of the current year
revenue and expenses or the proposed item discussions?
I'm just checking virtual to to make sure
no hands are there.
Okay.
So contracts are the contract.
So since we're trying to
follow a schedule that we're bringing some more contracts, giving them
all the board at different committees,
whether it be curriculum, general services, Finance,
just to have a platform for any conversations, any questions
you might have prior to getting to the board meeting
so that it's just so that we have more opportunity to talk about contracts.
So this is just a summary.
Those first two are ones that are on for tonight
and ones of revenue item actually, and the other ones, one for communications
and then just one for
the April 11th meeting.
Just wanted to see if there's any question on that.
Now. I appreciate you presenting the contracts in this way.
I think that helps, you know, to get a snapshot.
I don't know.
You know, a lot of times when we approve a contract, it's the board.
It's board approved for the first year and then goes on
to be, you know, automatically renewing, which doesn't require
board approval at that time.
Is there any way to capture that?
That is one thing we are working to build out in here. So
even if it's a renewal, we're
asking
all departments, our office, to really start thinking about
what are we under contract for and as to really start building a list of
what are we under contract for when, when is it up?
Is it an auto renewal just so that we know
if we don't want to renew that, we've got the option to get out of it?
So that's one of the initiatives of something that we really want to build,
is having eyes on that.
So that's in works and where we something that's worked on over the next year.
And as I see
as I approve
invoices and checks, like just things that I'm looking at dates
and keeping a list of ones that we should go back
and make sure we get on on a list, so to speak.
And I think that would be helpful because sometimes we approve it
and then it goes somewhat out of sight, out of mind, you know,
ongoing because it's not coming back before the board.
Well, I would make sure
had that good list, too, only because as we
as we go to make payments, you think, oh, it's in line,
we have a contract for this, but are we really getting billed under the contract?
So I think those are important steps to make sure that we're, you know,
just Yeah, for sure.
You know, circling back on contract terms.
Thank you.
All right.
There was there's one that's coming.
We talked about it in ad Hoc.
We've talked about it in general services just a little bit ago.
So there's a contract with our office.
And I think everybody here has has heard of it.
The ad hoc or general services are
Alps is an architect firm out of Lancaster
who will be coming forward for the on
April 25th for getting
bumping and bumping out of what you say, May
or we were saying April 20, the end of April.
So I will be sharing that with you to share with.
So the next go round of contracts, most likely for the end of April,
and it will be to kind of pick up where warehouse left off, who we had
had do some architectural design work for the s.e.c.
Just to evaluate our options going forward since it is a very large price tag
and with that we might be in an enrollment study.
It's still working to get a little bit more information on on
if that's necessary.
Did did general service recommend that that I.
Yes yes
to to move forward chiefs to working on Mr.
Purcell still working on some funding
or some understanding of the cost for the study probably.
But the architect study.
I would I think it's a good thing to move forward on just to kind of
help us get off a dead center with making some of those decisions
that are going to have. I mean, we have to do something.
It's just a matter of what do we do and at what cost?
How do we. Do? I think I think it was moved to finance.
Is that what General Services did?
Moved it to finance.
For our April meeting?
Yes, yes, yes.
And then at that point in time, we'll will then have a discussion of finance
and then bring it to the full board.
I just want to clarify that the ropes
is for the elementary facility study with Mrs.
Purcell still learning our buildings is different than the elementary.
I didn't even register. Yes.
Clarify.
I looked at that, so I was.
I may have on the wrong building.
No. So thank you for that.
Great.
And the contract list will just be an ongoing item
on the Finance Committee budget
for each meeting, correct? Right.
So if there are any questions, it's a good opportunity to we'll
we'll do the same, too, especially if it comes to a curriculum,
general services, depending on the frequency
or what's it's coming when timing time wise, just to give a placeholder
to ask questions for class.
Perfect.
All right.
Well, it is. 5:59 p.m..
So there are no public attendees online or in the audience.
So if no one else has any
questions or comments, then I would move to adjourn.
Finance meeting at 5:59 p.m.
and we'll meet again
at the end of April 25th.
Okay, so moved.
Thank you.
Second reading.
All in favor say. Hi.
Hi. Any opposed?
Meeting is adjourned.
Thank you to our citizen advisors for joining us.