[1. Opening Items]
[00:00:06]
>> WE ARE OPENING OUR TUESDAY, JANUARY 17TH BOARD OF EDUCATION WORK SESSION.
FIRST, I'LL ENTERTAIN A MOTION TO GO FROM CLOSE SESSION BACK INTO OPEN [OVERLAPPING] SESSION MEETING.
>> A MOTION AND A SECOND. ALL IN FAVOR?
>> THE GIACOMO CANNOT BE WITH US TONIGHT AND BOARD MEMBERS HERE.
AGAIN, VERY SPECIAL OPPORTUNITY HAVE IN OUR COUNTY COMMISSIONERS AND THEIR STAFF HERE WITH US TONIGHT.
WE'LL LOOK AT THE AGENDA SHORTLY, BUT FIRST, THE PLEDGE OF ALLEGIANCE.
>> THANK YOU. WE HAVE A VERY BRIEF AGENDA HERE TONIGHT, BUT I WANT TO ATTEND A MOTION TO APPROVE THE AGENDA AS PREPARED.
[2.01 Budget Discussion with Caroline County Commissioners]
GO RIGHT INTO OUR BUDGET DISCUSSION.BUT BEFORE WE DO THAT, AGAIN, JUST WANT TO ACKNOWLEDGE, IT'S REALLY WONDERFUL TO HAVE OUR COMMISSIONERS AND STAFF HERE WITH US TONIGHT.
THIS IS SOMETHING THAT HISTORICALLY THE BOARD OF ED AND THE COMMISSIONERS HAVE DONE FOR MANY YEARS.
IT'S BEEN LONG AND BACK AS I CAN REMEMBER AND IT'S REALLY OUTSTANDING OPPORTUNITY TO SHARE AND TALK WITH EACH OTHER AND JUST CONTINUE TO BUILD THIS GREAT RELATIONSHIP THAT HAS EXISTED FOR SO MANY YEARS.
THERE'S A LOT OF PLACES THAT DON'T HAVE THIS RELATIONSHIP.
FOR A SMALL COMMUNITY, EVERYBODY KNOWS EVERYBODY.
BUT SOMETIMES IN SMALL COMMUNITIES BECAUSE FIGHTING AND THERE WASN'T ONE TIME.
I'VE HEARD LOTS OF HORROR STORIES.
I'M SURE SOME OF YOU HEARD AS WELL, I THINK THAT'S PRETTY ACCURATE.
BUT A LONG TIME SINCE THAT'S BEEN A PROBLEM.
IN PARTICULAR, WE WANT TO WELCOME ALL OF YOU.
WE HAVE TWO NEW COMMISSIONER WHICH IS TREMENDOUS FOR THE COUNTY AND HAVE GREAT PEOPLE STEP UP LIKE THAT AND FOR MR. PORTER CONTINUE IN OFFICE.
AGAIN, HE BRINGS UP THAT LONG-TERM VETERAN LEADERSHIP.
HAVING THAT INSTITUTIONAL KNOWLEDGE STAY WITH YOU.
YOU GUYS JUST HAVE TO BE THRILLED TO HAVE THE THREE OF YOU THERE.
THE STAFF IS SAYING OUR THRILLED TO HAVE THEM THERE.
THEY'RE REALLY GOOD PEOPLE AND IS SO GREAT TO HAVE GOOD PEOPLE STEP UP, NOT EVERYBODY GETS THAT EITHER.
BUT AGAIN, WELCOME AND WE CAN GO RIGHT INTO THE AGENDA DISCUSSING THE BUDGET.
>> CERTAINLY, I'M GOING TO SHARE THIS REALLY QUICK.
>> WE'RE GETTING READY TO DO THAT, I GUESS I SHOULD ASK THE COMMISSIONER IS IF THEY WANT TO SAY ANYTHING.
I LOOK FORWARD TO WORKING WITH THE BOARD, LIKE I'M FIRST COMMISSIONER IN AWHILE TO HAVE THREE STUDENTS IN THE SCHOOL SYSTEM.
SO BRING KIDS IN THE SCHOOL SYSTEM.
I LOOK FORWARD TO THE CONTINUED POSITIVE RELATIONSHIP AND DOING GOOD THINGS FOR THE COUNTY AS A WHOLE. THANK YOU.
>> THANK YOU FOR THE OPPORTUNITY AND IT'S ALWAYS GOOD TO SEE EVERYBODY HAD THE OPPORTUNITY TO GO AROUND THESE NUMBERS. THANK YOU.
>> THANKS FOR THE INVITE. I LOOK FORWARD TO WORKING WITH YOU GUYS AND JUST CONTINUE TO GROW CAROLINE COUNTY SCHOOL SYSTEM MAY GET BETTER.
>> THANK YOU ALL. I'LL DIVE RIGHT INTO OUR BUDGET DISCUSSION.
AS WE GO THROUGH OUR BUDGET SUMMARY, AARON GORDON, OUR CFO, WILL BE HERE AS WELL AS WE WALKED THROUGH IF QUESTIONS COME UP.
I WOULD SAY BY ALL MEANS AS QUESTIONS COME UP, PLEASE FEEL FREE TO ASK.
AS WE WALK THROUGH BEFORE WE DIVE INTO THE BUDGET SUMMARY WHEN YOU START TO GO INTO IT, YOU'LL NOTICE THAT THERE ARE NEW REVENUE NUMBERS ON THERE THIS POINT IN TIME.
AS MR. FOX NEWS, WE DON'T HAVE THAT INFORMATION FROM THE STATE YET.
WE ANTICIPATE HAVING THAT INFORMATION BY THE END OF THIS MONTH.
WE SHOULD HAVE PRELIMINARIES BY THE END OF THIS MONTH.
YES, MR. COLEMAN, WE'RE BEING TOLD ME YOU WILL HAVE PRELIMINARIES BY THE END OF THE MONTH THIS YEAR.
I DON'T THINK THEY'RE GOING TO BE ARGUING OVER WHOSE FORMULA IS RIGHT.
I THINK THEY GOT THAT STRAIGHT AFTER ABOUT FOUR MONTHS OF FIGHTING LAST YEAR.
WE SHOULD HAVE SOME PRELIMINARY NUMBERS BY THAT POINT AND WE'LL SEE WHAT HAPPENS IN THE LEGISLATIVE SESSION.
AGAIN, WE DON'T HAVE THE STATE REVENUE NUMBERS
[00:05:03]
AS OUR COMMISSIONERS I'M SURE HE'S AWARE AND I'M SURE JEREMY AND DANNIE HAD BRIEFED YOU GUYS ON BUDGET STRUCTURE OR FUNDING OR TYPICALLY ABOUT 80 PERCENT FUNDING FROM THE STATE, 20 PERCENT FROM THE COUNTY.WHEN YOU RECOGNIZE THE TAX BURDEN THAT THE COUNTY HAS AND THE CHALLENGES THAT FACES AS MANY OF US ARE RESIDENTS.
I THINK ALL OF MY STAFF, YOU'RE FAMILIAR ALL RESIDENTS IN THE COUNTY, WE ALL UNDERSTAND THE CHALLENGES.
WE APPRECIATE THOSE CHALLENGES.
BUT WE ALSO UNDERSTAND THAT A LOT OF THE BURDEN THAT ARE PLATES ONE IS REALLY THE STATE REVENUE DOLLARS REALLY DOES HAVE A BIG IMPACT.
WITH THAT SAID, WITHOUT GOING INTO A BIG LONG DEEP DIVE, ON THE REVENUE SIDE, I DON'T WANT TO MAKE ANY ASSUMPTIONS THE BIG DRIVERS FOR US THAT WE WILL BE LOOKING AT FOR STATE REVENUES.
OUR STUDENT ENROLLMENT IS UP THIS YEAR, WE'RE UP ABOUT 90 KIDS ON THE STREET AND YEAR-TO-YEAR INCREASE NUMBER.
THERE IS A COMPONENT WHERE THE STATE HAS DONE A THREE-YEAR AVERAGE AS WELL AND LOOK AT THAT IN TERMS OF FUNDING ALLOCATIONS, IF YOU DROPPED 2020 OUT, I BELIEVE OUR THREE-YEAR AVERAGE IS RIGHT AROUND 56, 57 IN THAT BALLPARK.
SO NO MATTER HOW YOU SLICE IT, WE'RE UP KIDS, NO MATTER WHICH NUMBER YOU USE, WHICH IS GOOD.
A LOT OF SCHOOL SYSTEMS ARE NOT UP.
BUT WE HAVE SEEN A BOUNCE BACK.
WE'RE NOT AT PRE-COVID NUMBERS BUT WE ARE WORKING TOWARDS THAT, BUT WE'RE NOT BACK TO WHERE WE WERE PRE-COVID.
ANOTHER FACTOR IN OUR STATE FUNDING FORMULA ISN'T JUST THE RAW STUDENT COUNT IS ALSO THE NUMBER OF STUDENTS WHO QUALIFY FOR FREE WITH HIS NAME.
CAROLINE COUNTY, LIKE EVERYBODY ELSE, HAS BEEN IMPACTED BY INFLATION AND BY OTHER IMPACTS OF THE PANDEMIC AND OUR FREE REASON MEAL COUNTS ARE UP.
FOR KIDS WHO ARE EXPERIENCING POVERTY IS A PRETTY SIGNIFICANTLY ACROSS MOST OF OUR SCHOOLS.
THAT HAS AN IMPACT ON THE STATE-LEVEL FUNDING THAT WE SEE COMING IN THROUGH THE COMPETENT OR COMPENSATORY EDUCATION NUMBERS.
WE KNOW WE'LL SEE AN INCREASE THERE.
WE CAN PREDICT A LITTLE BIT THOSE TWO ITEMS, WHAT WE CAN'T PREDICT WILL BE THE STATE OF WEALTH DATA WHEN IT FACTORS IN.
AGAIN, I DON'T WANT TO MAKE ASSUMPTIONS DANNIE, IF THE COMMISSIONERS ARE AWARE OF THAT, I WON'T GO INTO IT.
>> WE HAVE ABOUT TWO THIS YEAR.
>> IN A VERY SIMPLISTIC VERSION OF THE WEALTH ACTUALIZATION PIECE OR THE WEALTH FORMULA PIECE.
THEY BASICALLY TAKE ALL 23 COUNTIES PLUS BALTIMORE CITY.
THEY RANK THEM IN A RANK ORDER OF BASICALLY WHO BECAME THE WEALTHIEST, OR WHO BECAME THE LEAST WEALTHIEST IN THE LAST YEAR.
SOMETIMES IT'S BENEFICIAL TO US AND SOMETIMES IT'S NOT.
CAROLINE COUNTY HAS HAD LESS THE FALL THAN OTHER COUNTIES WHEN THE PANDEMIC HIT.
WHAT WE SAW IN THE DATA, COUNTIES THAT WERE LARGELY IMPACTED BY COVID, SHUTDOWNS AND OTHER PIECES LIKE FREDERICK COUNTY SO HUGE INCREASES IN STATE REVENUE.
THEY ENDED UP, I BELIEVE NUMBER 1 IN THE STATE, FOR NUMBER 1 FOR THE LEAST WEALTHY IN THE LAST YEAR.
CAROLINE STAYED AROUND 15, 16, WHICH HAS A HUGE IMPACT ON INCREASED STATE REVENUES.
NO MATTER HOW HARD WE TRIED TO PREDICT IT OVER MANY YEARS, PRE ME, PRE DANDY, PRE AARON, IT'S JUST VERY HARD TO PREDICT WHERE WE FALL UNTIL WE START GETTING PRELIMINARY NUMBERS FROM THE STATE, WHICH MAKES IT DIFFICULT WITH US SITTING HERE WITH YOU TONIGHT AND NOT REALLY KNOW WHERE STATE REVENUES DO FAULT THAT PROJECTION.
I JUST WANT TO THROW THAT OUT THERE TO BEGIN WITH.
RACHEL, IF YOU WANT TO PULL UP THE BUDGET SUMMARY AND WHAT WE'RE LOOKING AT AS A SCHOOL SYSTEM, AND I KNOW WHAT THE COMMISSIONERS HAVE A PAPER COPY IN FRONT OF THEM.
THAT'S WELL, SO WHAT WE'VE TRIED TO DO WITH OUR BUDGET SUMMARY DOCUMENT IS WHAT'S OUR COST OF DOING BUSINESS MOVING FORWARD, WHAT WE'RE DOING THIS YEAR, SAME SERVICES, CONTINUING THOSE ROLLING FORWARD, OR ANY COMMITMENTS WE'VE ALREADY MADE WITHIN OUR NEGOTIATED AGREEMENTS TO SALARY ENHANCEMENTS GOING FORWARD HAVE GOT TO BE ROLLED INTO THAT FIRST TOP PIECE, WHICH IS COSTED THEM BUSINESS TO CONTINUE WHAT WE'RE DOING AS IS.
THE NUMBER 1 ITEM AND IT WON'T TRULY GO THROUGH LINE BY LINE AND WEAR US OUT THAT WAY.
BUT THE BIGGEST ITEM ON HERE IS OUR SALARY INCREASE THAT WE AGREED TO THROUGH MEDIATION LAST YEAR WHEN WE WERE DIDN'T PASS WITH THEIR TEACHERS.
THE NUMBER THAT IS UP THERE WE'RE ALREADY COMMITTED TO FOR THIS YEAR GOING INTO, BUT THAT NUMBER ALLOWED US TO MEET THE REQUIREMENTS OF
[00:10:02]
BLUEPRINT BUILT BY REACHING THE 10 PERCENT SALARY INCREASE OVER FY 19, WHICH IF WE DIDN'T COME TO IT IN NOVEMBER AND MEDIATION, WE WOULD HAVE HAD TO COME TO THE RIGHT NOW AND NEGOTIATIONS AND WE'D STILL BE PAYING AT LEAST THAT FOR SALARY ENHANCEMENT WALKING INTO THE COMING FISCAL YEAR.THAT IS THE FIRST LINE AND THEN WE HAVE TO ACCOUNT FOR IS MAKING MAKING US RIGHT THERE.
WHAT'S NOT INCLUDED IN THIS ALSO WAS ANY SALARY ENHANCEMENTS THAT WILL BE COMING THROUGH NEGOTIATIONS RIGHT NOW.
WE'RE CURRENTLY IN NEGOTIATIONS WITH OUR CERTIFICATED, WITH OUR TEACHING STAFF AND WORKING THROUGH THAT PROCESS.
THAT'S WHY THAT NUMBER IS BLANK AT THIS POINT IN TIME.
AS I SAID, WE'VE JUST STARTED NEGOTIATIONS THERE.
WE HAVE A BIG INCREASE THEIR WITH SALARY PIECE THAT WE KNOW WE NEED TO HIT.
MOST OF OUR OTHER ALLEGATIONS ARE TRYING TO ADJUST TO INCREASES THAT WE'VE SEEN OVER THE LAST COUPLE OF YEARS, LARGELY DUE TO INFLATION, OR HAVE STILL PROBABLY IMPACTED BY INFLATION.
BUT AS WE'RE RENEWING CONTRACTS, TYPICALLY CONTRACTS GO UP IN PRICE.
IF WE HAD A GOOD RATE WHEN A CONTRACT PRE-PANDEMIC, AND IT WAS A MULTIYEAR CONTRACT NOW THEIR TRUNK UNDERSTANDABLY.
NOW, WE'RE GOING TO TRY TO REPEAT THAT A LITTLE BIT WITH CONTRACTS, WHICH MAKES SENSE AS THOSE COME IN.
SOMETHING TOO SMALL ON TO 6,000 AND A LION.
BUT LIKE INCREASE ALLOCATIONS FOR ATHLETICS, COST OF MAINTAINING OUR ATHLETICS PROGRAMS WE HAVE IS COMING UP, CALL FOR THE OFFICIALS ARE ON UP.
WE'RE TRYING TO ACCOUNT FOR SOME OF THOSE THINGS.
CAUSE THE RECONDITIONING FOR FOOTBALL, ALL OF THOSE PIECES WE JUST TRY TO KEEP AN EYE ON AND ADJUST AS WE NEED TO.
>> THE OTHER BIG PIECE AND WE TALKED ABOUT THIS LAST YEAR.
I KNOW IT CAME UP A LITTLE BIT AS A SURPRISE TO US IN OUR BUDGET PROCESS, JUST BECAUSE THE STATE WAS OFF SO MUCH IN THEIR EMPLOYER SHARE OF RETIREMENT COSTS CONTRIBUTION.
THE STATE TOTALLY MISSED THE MARK LAST YEAR ON THEIR PROJECTIONS, AND THEY CAME TO THE LOCALS AND TOLD US WE HAD TO MAKE UP THE DIFFERENCE, SO WE ENDED UP WITH A $330,000 INCREASE IN RETIREMENT COST LATER IN THE BUDGET CYCLE THAN WE WANT TO AND THEY TOLD US WE HAD TO MAKE THE DIFFERENCE.
WE'RE PROJECTING ABOUT A 200,000 RIGHT NOW AS FROM WHAT WE'RE GUESSING BASED OFF WHAT WAS NOT GUESSING.
EDUCATED ESTIMATE THAT AARON'S BEEN PART OF TO ACCOMMODATE THAT FOR THE BUSES, WE HAVE THREE BUSES COMING OUT OF LIFE CYCLE.
WE'RE ALMOST TO THE POINT BUDGET-WISE AND I ACCREDIT MILTON IN THE WORK THAT HE DID PREVIOUSLY TO GET OUR BUSES INTO A CYCLE WHERE WE'RE ALMOST AT THE POINT WHERE WE WILL HAVE TO STOP ADDING LINE ITEMS TO INCREASE THAT BUDGET ALLOTMENT WHERE IT WILL BE A CONTINUING REMINDING HIM THAT CATCHES OUR BUSES AS THEY ROLL OFF THAT CYCLE, SO WE WON'T HAVE TO KEEP INCREASING THAT LINE AND MAKE EVERY YEAR TO CATCH A COUPLE OF OTHER BUSES AS THEY TIMEOUT.
LASTLY, THE HEALTH INSURANCE RATE, PROJECTED INCREASE.
RIGHT NOW, WE'RE ANTICIPATING AN EIGHT PERCENT HEALTH INSURANCE RATE INCREASE.
THAT CAN GO UP OR DOWN DEPENDING ON OUR USAGE OVER THE NEXT SEVERAL MONTHS.
TYPICALLY, IT COMES IN HIGHER AND IT COMES DOWN, AND WE HOPE IT DOESN'T GO THE OTHER DIRECTION, BUT RIGHT NOW THEY'RE TELLING US TO PROJECT ABOUT AN EIGHT PERCENT INCREASE IN HEALTH INSURANCE.
OUR COST OF DOING BUSINESS IN TERMS OF WHERE WE CURRENTLY ARE, WE'RE PROJECTING ABOUT AN ADDITIONAL 3.1 MILLION DOLLARS THAT WE WILL NEED TO HAVE COMING INTO THE SYSTEM IN ORDER TO DO THE COST OF DOING BUSINESS IN THE ORDER OF WHERE WE ARE RIGHT NOW.
GO BACK TO WHAT I'VE SAID, WHAT I SHARED EARLIER WITH ENROLLMENTS COMING UP FOR MEALS RATE'S GOING UP.
I DON'T KNOW WHERE THE REVENUES WILL COME IN, BUT I'M NOT SITTING HERE EXTREMELY WORRYING TALKING TO YOU ALL TONIGHT WITH WHAT WE'RE HEARING ABOUT PROJECTIONS WITH THE STATE FUNDING FORMULAS IN GENERAL, WITH BLUEPRINT DOLLARS COMING IN AND SOME OF THE ASKS THAT I KNOW MARYLAND ASSOCIATION OF BOARDS OF ED IN THE PUBLIC SCHOOL SUPERINTENDENTS ASSOCIATION OF MARYLAND TO SAM HAD MADE FOR THE GOVERNOR TO INCLUDE IN THE BUDGET, WHAT THE SOON-TO-BE NEW GOVERNOR WILL INCLUDE IN THE BUDGET, AND SOME OF THOSE OFFSETS WILL HELP THE SCHOOL SYSTEMS MEET THESE REQUIREMENTS.
DOWN IN THE BOTTOM ARE REQUESTS.
I DIDN'T WANT TO WALK INTO OUR MEETING TONIGHT WITH THE FIRST LIST.
[00:15:01]
THE FIRST LIST IS THE FIRST STEP BY ALL ADMINISTRATORS, AND IT'S WHAT WE'VE BEEN TALKING ABOUT THE PREVIOUS BOARD MEETINGS, 12 CLASSROOM TEACHING POSITIONS, ETC, SO LARGE LIST.REALLY IS THAT WISHLIST STARTS AND YOU START TRYING TO DRILL IT DOWN TO A MORE MANAGEABLE, AND WHAT'S POSSIBLY DOABLE IN STATE REVENUE THAT COULD BE COMING IN, WHAT'S REALISTICALLY TO HELP OFFSET SOME OF THIS.
THE POSITIONS THAT ARE THERE, OF COURSE, AS YOU SAID, SALARY ENHANCEMENT IS BLANK.
WE ARE SEEING SOME GOOD INCREASE IN STUDENTS AS WE'VE TALKED ABOUT.
ONE OF THOSE THAT WAS NOT PROJECTED BASED OFF WITH ENROLLMENT CALCULATIONS, BIRTH RATES, THOSE THINGS, WAS WE'VE HAD KIDS COME BACK AT DENTON ELEMENTARY SCHOOL AT A FASTER CLIP THAN ANTICIPATED.
DENTON, SO ONE OF OUR STARTERS DROP-OFFS, PRE-PANDEMIC AND THEN IT KEPT GOING DURING THE PANDEMIC, BUT THEY'VE HAD MORE KIDS COME BACK IN AT A FASTER CLIP, WHICH IS A GOOD THING.
BUT IT'S CALLED SOME FULL CLASSROOMS. WE MADE SOME ADJUSTMENTS LAST YEAR TO TRY TO RIGHTSIZE OR STAFFING BASED OFF OF OUR ENROLLMENT, WHERE IT WAS, AND WHERE WE SAW IT GOING.
FRANKLY, AT DENTON, IT GREW A LITTLE FASTER THAN EVERYTHING WE WERE SEEING, SO WE KNOW WE NEED TO LOOK AT AN INCREASED STAFFING POSITION AT DENTON ELEMENTARY SCHOOL.
NORTH CAROLINE HIGH SCHOOL HAS GOT A LARGE BUBBLE OF KIDS AT IT RIGHT NOW.
IT'S STILL FULL, BUT IT'S DEFINITELY COME BACK DOWN.
THEIR BIG BUBBLE HAS MOVED ON TO NORTH HIGH.
NORTH HIGH CONTINUES TO GROW AS WELL.
NORTH CAROLINE HIGH SCHOOL LIKELY, WILL TOP 1,300 KIDS NEXT YEAR.
AS A COMPARISON TO KERNEL'S 550.
NORTH HIGH, THREE YEARS AGO WAS PROBABLY ABOUT 1,100, SO A COUPLE OF ABOUT 200 KIDS OVER A COUPLE OF YEAR PERIOD.
AT NORTH HIGH, THEY NEED ADDITIONAL STAFF TO OFFSET THAT.
THEY'RE SEEING CLASS SIZES 30 PLUS AND SOME OF THEIR CONTENT AREAS.
THAT'S WHY YOU SEE THE INCREASE OF THE SOCIAL STUDIES TEACHER AND THEN ALSO MATH TEACHER AT NORTH CAROLINE HIGH SCHOOL.
SOME OF THE OPERATIONS SIDE THINGS THAT ARE ON HERE ARE THINGS THAT WE'VE BEEN TRYING TO GET INTO THE BUDGET THE LAST SEVERAL YEARS, AND I'M GOING TO TRY TO GET THOSE TO OCCUR THIS YEAR, IF WE CAN TO SUPPORT THE EFFORT.
OUR MAINTENANCE GUYS ARE DOING AN INCREDIBLE JOB OF MAINTAINING OUR FACILITIES.
IF WE LOOK AT IT IN TERMS OF STAFFING NUMBERS FOR WHAT'S RECOMMENDED VERSUS THE SQUARED FOOTAGE WE HAVE, WE'RE OFF BY PROBABLY EIGHT OR NINE MAINTENANCE GUYS. OUR GUYS ARE INCREDIBLE.
WE'RE LOOKING AT THE POTENTIAL OF ADDING A MAINTENANCE FOREMAN, A WORKING SUPERVISOR PER SE.
SOMEBODY WHO HAS EXPERIENCE, WHO CAN HELP US BUT AGAIN CAN ALSO HELP MANAGE THE WORKFLOW OF WORK ORDERS AND THOSE PIECES THAT ARE COMING IN.
THAT'S WHAT WE'RE LOOKING AT AS OF RIGHT NOW.
>> I JUST WANT TO MENTION THAT AS RETIREMENTS COMING IN, WE WILL BE LOOKING TO FIND SAVINGS IN THE BUDGET IF WE CAN RE-ALIGN OR RESTRUCTURE.
WE WILL BE LOOKING FOR SAVINGS OPPORTUNITIES THAT ARE NOT ON THIS LIST RIGHT HERE.
>> WE HAVE A COUPLE OF RETIREMENTS THAT HAVE COME IN.
A COUPLE OF RETIREMENTS IN CENTRAL OFFICE LEVEL.
THAT'S GIVING US AN OPPORTUNITY TO JUST RELOOK AT THE ALLOCATION OF RESOURCES AND FOLKS TO SEE IF THERE'S A BETTER WAY WE CAN UTILIZE OUR RESOURCES TO TRY TO OFFSET SOME CALL SOMEWHERE ELSE, SO WE'LL CONTINUE TO REFINE THAT.
OUR VOLUNTARY RETIREMENT INCENTIVE PROGRAM WINDOW JUST CLOSED LITERALLY OVER THE WEEKEND.
WE TEND TO NOT LOOK AT A LOT OF SHIFTS UNTIL WE KNOW WHO IS RETIRING AT THE END OF THE YEAR OR GIVING THEM EARLY NOTICE, SO WE'LL START WALKING THROUGH THAT PROCESS WITHIN THE NEXT SEVERAL WEEKS TO TRY TO GET A BETTER ALIGN ON THE SAVINGS, AND WHATSOEVER THAT WE CAN HEAR.
AGAIN, WHAT I DIDN'T SHARE AND I APOLOGIZE FOR THAT.
THIS OBVIOUSLY DOESN'T INCLUDE ANYTHING ON THE CAPITALIST SIDE.
THIS IS THE UNRESTRICTED OPERATING BUDGET FOR THE SCHOOL SYSTEM.
THE ONLY THING THAT IS CAUSING CONSTERNATION RIGHT NOW IN THE IMMEDIATE FUTURE WILL BE THAT WE STILL HAVE WAYS TO GO TO GET TO THE 60,000 STARTING SALARY FOR ALL TEACHERS.
WE HAVE THREE YEARS TO GET THERE.
WE'RE ABOUT 18 PERCENT OFF ON THE STARTING SALARY.
HOWARD WILL BE HAVING AN AGREEMENT WITH OUR ASSOCIATION, THAT IN NEXT YEAR'S NEGOTIATIONS, WE WILL BE SITTING DOWN TO REDO THE TEACHER SCALES COMPLETELY.
IF THERE'S GOING TO BE SOME WORK THAT NEEDS TO BE DONE TO ADDRESS THE SCALE ISSUES,
[00:20:02]
NEXT YEAR IS WHEN WE WILL BE LOOKING AT THAT.BUT WE'LL LOOK THROUGH WHATEVER WE CAN THROUGH NEGOTIATIONS TO TRY TO HELP CLOSE THAT GAP, OF COURSE, WITH OUR STAFF.
NOBODY'S GOT THE ANSWER TO 60.
THOSE WHO WERE THE CLOSEST SCHOOL SYSTEMS WHO WERE GETTING THERE ARE DOING IT THROUGH REDOING THEIR SCALES.
THEY START ERASING THEIR STARTING SALARY, AND THEY'RE CLOSING THE NUMBER OF STEPS.
THEY'RE JUST COMPRESSING THEIR SCALE WARM AND RAISING FROM THE BOTTOM. IT'S HOW THEY'RE WORKING TO GET CLOSER TO THAT.
I THINK THE CLOSEST MIGHT BE SOMEBODY STARTING AT 54 AND CHANGE, MIGHT BE THE CLOSEST, BUT THAT'S PROBABLY HOW MOST SYSTEMS ARE GOING TO END UP GETTING THERE OVER THE NEXT COUPLE OF YEARS.
RIGHT NOW THAT'S OUR THINKING.
BECAUSE I DON'T SEE A CASH COW ROLLING THEM OUTSIDE WITH THE CURRENT MODEL IF THEY ARE TRULY WORRIED IS THAT HAPPENING TO GROUP OF SALARIES IT'S NOT TENABLE.
THAT'S A NUTSHELL TERMS AT LEAST ARE OPERATING AT SOME OTHER THINGS TOO, THAT DEFINITELY WOULD LOVE TO DISCUSS WITH YOU GUYS AS WE BUDGET.
BUT WHAT QUESTIONS OR COMMENTS COMMISSIONER SET UP OR YOU CAN STAFF? YOUR INCREASE IN ELECTRIC.
WE HAVE THE SOLAR SYSTEMS IN THERE ALL.
RIGHT, THAT'S AN INCREASE EVEN WITH SOLAR? OH SIGNIFICANT.
SO WE BUY AND I DON'T KNOW IF THE COMMISSIONERS DO IT AS WELL.
YOU GUYS WEREN'T AS MAC ENERGY TRUST.
[OVERLAPPING] SO BETWEEN MIDWAY THROUGH FISCAL YEAR '22 TILL NOW, OUR KILOWATT PER HOUR RATE INCREASED 52.5 PERCENT FOR THE SAME USAGE OF ELECTRICITY.
SO WE'VE, I'M SURE COMMISSIONERS HAVE HEARD, [OVERLAPPING] ENERGY.
I'VE NOT TOLD THEM ABOUT THOSE.
PARCELS SMALL ENOUGH, I CAN WORK WITH THEM.
YEAH. FOR US, THAT'S CLOSE TO A MILLION DOLLAR INCREASE IN ELECTRICITY COSTS AS AT CURRENT USAGE RATES IN PREVIOUS YEARS.
WE'VE PARTNERED WITH SYNERGISTIC AND ENERGY MANAGEMENT COMPANY THAT'S WORKING WITH US TO REDUCE ENERGY COSTS, REDUCE OUR ENERGY DEMAND, ESPECIALLY DURING UNOCCUPIED TIMES, TO TRY TO OFFSET THAT COST.
BECAUSE THE ELECTRICITY WERE LITERALLY THAT 52 PERCENT INCREASE ON THE KILOWATT PER HOUR WAS MASSIVE.
WE TRIED TO ABSORB SOME OF THIS YEAR.
WE STILL HAVE SOME ADJUSTMENT TO MAKE IN THE BUDGET.
THIS IS TRYING TO GET US TO WHERE WE BELIEVE WE WILL BE WITH A REDUCED USAGE FOR ENERGY MARGIN.
SO FOR US, FOR THE SOLAR FIELDS, MR. HORNER, WE GENERATE SAVINGS ON THE SOLAR FIELDS IF OUR ELECTRICITY USAGE IS LOW ENOUGH THAT IT'S PUTTING ELECTRICITY BACK IN THERE.
THIS IS THE FIRST, AT LEAST FIRST SIGNIFICANT TIME IS IN OUR TIME OF HAVING SOLAR FIELDS UP AT LEAST IN THE LAST FEW MONTHS WITH MOVING IN THIS ENERGY MANAGEMENT WORK THAT WE'RE ACTUALLY SEEING A RETURN ON INVESTMENT IN THAT REGARDS WITH SOLAR HELPS, BUT IT HASN'T HELPED BLOOD TO FALL IT WOULD BECAUSE WE WERE STILL USING OUR AWFUL LOT.
WOULD BETTER AFTER POTENTIAL FROM HER LOCKER ROOM AND THEN ELEMENTARY.
SO WE CAN SELL THEM A MEGAWATT AND A HALF AT 10 PERCENT OF KILOWATT CHARGE.
IT'S OKAY TO DO IT THROUGH THAT SO WE CAN TALK ABOUT IT.
IT'S NOT ENOUGH THAT IT'S GOING TO MAKE THIS NUMBER MORE AND THIS NUMBER IS [INAUDIBLE] WELL, WE WE'RE LOOKING THIS OVER PROVIDER WHO'S LOOKING FOR A NUMBER OF LARGE CUSTOMERS, RIGHT? YEAH. WE DIDN'T PUSH THEM YOUR DIRECTION BECAUSE I WAS UNDER THE IMPRESSION YOU'D ALREADY OFFSET EVERYTHING YOU COULD OFFSET.
BUT MAYBE IF YOU HAVEN'T, THEN WE CAN DO THAT.
THEY NEED A MEGAWATT AND A HALF A DAY, I MEAN 10 PERCENT OFF IS ONLY 35,000 BUCKS, BUT I MEAN, ALL OF YOUR INCREASE, IT'S STILL A NUMBER.
SO JUST REMEMBER THAT WHILE THE KILOWATT COST WENT UP 51-52 PERCENT, BUT IT FEELS LIKE MORE 52 PERCENT, THE DISTRIBUTION COSTS DIDN'T.
SO I MEAN ONLY ONE-HALF OF THE EQUATION MOVES.
OUR USAGE IS LOW ENOUGH THAT WELL IT'S STILL GOOD.
SHOWS IT'S NOT ENOUGH THAT I THROW A BUNCH OF FLAGS THAT YOU GUYS WE OBSERVED.
WE'RE JUST GOING TO ABSORB IT IN, SPREAD OUT A BUNCH THAT DEPARTMENTS.
OUR POWER USAGE IS NOWHERE NEAR, BUT THERE IS THIS.
WE'RE ALSO VERY GOOD AT OUR BUILDINGS UNOCCUPIED.
OTHER THAN 911 CENTER, DON'T REALLY DRAW THE 911 CENTER IS PROBABLY OUR SINGLE LARGEST DRONE.
[00:25:04]
THEY ARE.THEY DO HAVE DENTIN ELEMENTOR AGAIN, LOGARITHM DO NOT HAVE ANY SOLAR PANEL.
WE WANTED TO ADD SOLAR PANELS AS LONG AS OUR OVERDRIVE THE POLL, IT DOESN'T REALLY MATTER.
BUT I THINK IT'S EITHER TWO MEGAWATTS OR IN MEGAWATT THAT THEY'VE GOT TO GET RID OF.
SO WHAT WE'RE DOING AS A COMMUNITY SOLAR PROGRAM AND TOGGLE OFF THROUGH LANDFILL WITH THE INTENT OF HEDGING WHAT WE BELIEVE IS GOING TO BE THE STATE'S MANDATE THAT THE COUNTY PURCHASE A CERTAIN AMOUNT THROUGH GREEN ENERGY AND NO ONE EVER WANTED TO GET THAT DONE AHEAD OF THE MANDATE WASN'T MANDATE COMES IN AND THERE'S NO COST-SAVINGS AT THAT POINT BECAUSE IT BECOMES MANDATED PIECE OF YOU GET IT AHEAD OF TIME.
MAYBE IF WE TAKE THE WHOLE THING TOGETHER, WE CAN NEGOTIATE THAT NUMBER DOWN A LITTLE BIT.
SO DEFINITELY WORTH FURTHER DISCUSSION.
EARLY KIM, CAN WE FIND A HALF AN HOUR EARLY NEXT WEEK? [BACKGROUND] YEAH.
I NEED TO GRAB DANNY FOR THAT AS WELL.
YOU'RE BURNING MORE POWER THAN ANYBODY ELSE.
[LAUGHTER] [OVERLAPPING] AND COLD BECAUSE IF YOU TURN THAT AC OFF.
THEY TURNED IT OFF AND IT WENT TO 75 AND ABOUT HALF HOUR AND I'M LIKE, OH MY GOD.
WE'VE DONE THE ALARMS START GOING OFF IN YOUR BATHROOM.
SERVER ROOM STARTS FLIPPING OUT RIGHT [OVERLAPPING] AGAIN ABOUT YOUR THE INCREASE IN RETIREMENT.
SO WHO IS RESPONSIBILITY IS IT TO CALCULATE THAT? ERIC, YOU WANT TO TAKE THAT? SHE MIGHT GIVE YOU A LESS COLORFUL.
SO THE MARYLAND STATE RETIREMENT AGENCY.
SO THERE YOU GO. HOW MUCH WERE THEY OFFER THE WHOLE STATE? IT WAS SUBSTANTIAL.
OUR PIECE LAST YEAR WAS [OVERLAPPING] LITTLE CAROLINE COUNTY WAS OFF BY $440,000.
THEIR EXPECTATION COMMISSIONER PORTER WAS A RETURN ON INVESTMENT LAST YEAR.
I BELIEVE THAT THEIR INVESTMENTS WOULD HAVE RETURNED WAS AT SEVEN PERCENT.
THEY FEEL THEY'RE GOING TO GET SEVEN PERCENT.
SIX-AND-A-HALF PERCENT, SEVEN PERCENT.
OR WHATEVER IS WHAT THEY MEAN.
[OVERLAPPING] WHAT THEY DID WAS THEY ACCEPTED IT TO US.
THEY SHIFTED IT TO THE COUNTIES.
THEY MAKE A MISTAKE AND JUST SHIFTED TO US.
WE ONLY DID TWO-AND-A-HALF OR THREE POINTS.
THEN ONCE WE'VE HEARD ABOUT IT, WE WERE TRYING TO FIGURE OUT HOW MUCH MONEY A MAN, AND WE DIDN'T EVEN FIND OUT UNTIL TOWARDS THE END OF SESSION HOW MUCH IT IMPACTED CAROLINE COUNTY.
THEN WE HAD TO TRY TO GET THAT INTO THE BUDGET AT THAT POINT IN TIME.
BECAUSE THEM AND THEY BOTH DID SEND LETTERS.
IT WAS LATE AT THAT POINT TO HOPE THE GOVERNOR AND DO ADDITIONAL SUPPLEMENTAL.
WE DID SEND IT WHILE HOPING, BUT IT DIDN'T.
APPOINT PEOPLE WHO KNOW WHAT THEY'RE DOING.
JUST SCARY PART AND THEY MAY HAVE KNOWN EXACTLY WHAT THEY WERE DOING.
THEY OVERESTIMATED AND THEIR FALL BACK PLAN WOULD BE TO PASS IT ON TO THE COUNTIES.
IT WOULDN'T SURPRISE ME THAT PEOPLE LIKE THEM THEY'RE IRRESPONSIBLE.
[BACKGROUND] SO THAT'S, THAT'S WHAT THAT INCREASES AND WE'RE ANTICIPATING THEY'RE NOT GOING TO HIT THE MARK THE MSU.
SO WE'RE ANTICIPATING RIGHT NOW.
I'M TRYING TO TRUE IT UP FROM LAST YEAR, STILL RECOVERING FROM THE DEFICITS THAT WE HAD.
IT WAS TOUGH TO SWALLOW IT THE LAST TIME.
>> WE'VE BEEN ACTIVELY PUSHING THE COUNTIES, SO THE COUNTY MANAGES ITS OWN SYSTEM PATCHING SYSTEM, WE'VE BEEN ACTIVELY PUSHING DOWN OUR DISCOUNT RATE EVERY YEAR FOR THE PAST FIVE YEARS.
YEAH. WE'VE BEEN LOWERING THAT EXPECTATION AND THEN WE'VE BEEN INCREASING SOME OF THEM, SO WE'VE BEEN SHOWING IT WORSE THAN WE HOPE.
THEN WE HAD A COUPLE OF YEARS THAT WERE REALLY BAD, BUT WE STILL KEPT PUSHING THAT DISCOUNT RATE DOWN.
THE RESULT OF THAT IS THE COUNTY'S PENSION SYSTEMS ARE ACTUALLY FULLY FUNDED, WHICH IS UNUSUAL IN THE STATE OF MARYLAND.
BUT IF WE TOOK A HIT LIKE THAT ON OURS, THAT WOULD BE DIFFICULT, [LAUGHTER] I THINK I MIGHT BE LOOKING AT IT ALL WRONG.
>> WE SHOULD GET ON OURS LIKE THAT.
[NOISE] BUT I HAVE ANOTHER QUESTION LATER ON, BUT THAT'S IT.
[00:30:08]
>> DO WE HAVE A TEACHER SHORTAGE RIGHT NOW IN THE COUNTY?
>> WE STARTED THE YEAR WITH ONE POSITION, I THINK, WHICH WAS GOOD.
WHERE WE ARE NOW, WE'RE SITTING AT NINE.
I WOULD SAY THE STATE HAS A CRITICAL TEACHER ISSUE.
WHAT MOST COUNTIES ARE DOING, YOU'RE HIRING PEOPLE ON A CONDITIONAL.
FOLKS WITH A COLLEGE DEGREE THAT WE'RE HELPING TO PUT THROUGH TO GET THEIR TEACHING CERT, THERE IS A 100 PERCENT LEGITIMATE SHORTAGE.
IT'S EVERY UNIVERSITY WILL PUT OUT, I FORGET THE EXACT NUMBER, BUT THE NUMBER OF KIDS THAT THEY HAVE IN THEIR ENTIRE TEACHER ED PROGRAM, I THINK BEFORE THIS YEAR STARTED WAS A 100 AND SOMETHING.
THE ENTIRE TEACHER ED PROGRAM AT A SCHOOL THAT HAS A HISTORY OF TEACHING STUDENTS.
THEY'RE NOT ATYPICAL OF EVERY OTHER TEACHER COLLEGES IN THE STATE.
YES. WE STARTED WELL, WE'VE GOT SOME THINGS THAT WILL HELP US RE-BOUNCE ON.
BUT I THINK WE'RE IN PROBABLY A THREE, FOUR YEAR CYCLE WITH BEING TOUGH.
NOT ALL NURSES WERE THERE AND PROBABLY WE DID NOT SEE A HIGH RATE OF FOLKS ANNOUNCING RETIREMENTS WHICH IS HELPFUL.
ONE, A LOT OF FIRMS, LEAST OF WHICH IS BY SEEING FOLKS HANGING AROUND, IT'S THERE IN TEACHERS, IT'S THERE IN ADMIN.
THERE'S A WORKER SHORTAGE AS YOU'RE SEEING PROBABLY IN YOUR REALM.
THE LATEST I SAW WAS 62 PERCENT OF THE WORKING ELDERLY POPULATION IS ENGAGED IN WORK FORCE WHICH JUST MAKES IT VERY REAL.
>> THE BLUEPRINT MANDATED RAISES MAY MAKE A DIFFERENCE COMPETING, NOT SO MUCH IN MARYLAND, BUT WITH OTHER STATES.
MARYLAND SALARY IS PRETTY GOOD.
IT MIGHT ALSO ENCOURAGE PEOPLE WHO ARE LONG-TERM EMPLOYEES, TEACHERS ARE WILLING TO STICK AROUND TO GET THAT HIGHER AVERAGE MARGIN MEASURE THAT AND THEY'RE LIKE THE OTHER COUNTIES' STAFFING LEVELS FOR TEACHERS TOO ARE DIRECT.
>> DO YOU HISTORICALLY SEEN A DROP, HAVE WE SEEN A DROP MID-YEAR LIKE THIS WHERE WE DROPPED DOWN?
>> VARIES WITH REASONS ALL OVER THE BOOKS.
THERE'S PROBABLY JUST AS MANY, IF NOT MORE OF THOSE WHO'VE HAD KIDS AND SAY I WANT TO BE HOME WITH MY KIDS.
IT'S PROBABLY JUST ABOUT AS MANY OF THAT IF NOT ALL, TRY TO UNDERSTAND. YOU CAN DO IT.
IT'S THE SAME BUT CONNECTED TO RICK'S POINT A LITTLE BIT.
I WAS TALKING WITH SOME PEOPLE IN DELAWARE, FOR WHAT IT'S WORTH, THOSE IN SCHOOL SYSTEMS IN DELAWARE, IN LEADERSHIP POSITIONS, DO HAVE SOME CONCERN AS MARYLAND DOES RAMP UP THE BLUEPRINT BECAUSE OUR SETTLERS WILL INCREASE WHILE DELAWARE DOESN'T HAVE AN INFLUX COMING FROM THEIR STATE AND MANDATES TO INCREASE, SO I HATE TO SAY WE WILL BE ROBBING SOMEWHERE NEARBY.
BUT IT HELPS WHEN YOU HAVE A BORDER FOR THE STATE, WHERE PAY PROBABLY WON'T BE COMPARABLE AND WORTH MAINTAINING.
WE'LL PROBABLY END UP SEEING MORE DELAWARE FOLKS JUMP OVER.
DELAWARE'S HAD A BETTER RETIREMENT HISTORICALLY AND MARYLAND WILL LIKELY HAVE BETTER SALARIES.
>> ACCORDING TO AN ABSOLUTE DELAWARE LAWSUIT, WAS THAT?
>> THE WAY IN WHICH THE SCHOOLS ARE FUNDED IN DELAWARE IS VERY DIFFERENT THAN THE WAY IT IS IN MARYLAND AND THERE IS A STATE LAWSUIT THAT'S WORKING ITS WAY THROUGH THE SYSTEM.
IF IN FACT THE SCHOOL SYSTEMS WIN, THE SCHOOL SYSTEMS WILL SEE A SIGNIFICANT INCREASE OVER THE NEXT 10 YEARS IN THEIR REVENUE BECAUSE THEY WILL HAVE THE ABILITY TO INCREASE THE PROPERTY TAXES RATHER DRAMATICALLY IN DELAWARE.
YES, THAT'S THE MAJORITY OF THE INCOME, PUBLIC PROPERTY TAX IN DELAWARE IS THE SCHOOL TAX.
IF IN FACT THAT HAPPENS, THE SCHOOL SYSTEMS WILL IN FACT OVER THE NEXT 10 YEARS SEE A SIGNIFICANT INCREASE IN REVENUE, WHICH I THINK WOULD OFFSET THAT.
WHERE ARE WE? ARE WE COMPETITIVE TO OUR MARKET?
[00:35:05]
OUR MARKET IS NOT ON A RUMBLE AND OUR MARKET IS OVER HERE, SO ARE WE COMPETITIVE?>> AS OF THE LATEST NUMBERS WE RAN, WHICH IS BASED ON MSD DOES A SALARY STUDY.
THEY DID OURS PRIOR TO MEDIATION FINISHING.
IF YOU PULLED THEM OFF THE WEBSITE, IT'S NOT ACCURATE.
>> WE'VE UPDATED IT INTERNALLY SINCE THEN.
OUR STARTING TEACHER SALARIES IS THIRD ON THE EASTERN SHORE, THREE OVERALL.
WE ARE DEFINITELY COMPETITIVE.
THE THING THAT WE KEEP AN EYE ON IS ARE WE COMPETITIVE AND CAN WE STAY COMPETITIVE? WE'RE THREE, BUT THERE'S NOT A LOT OF GAP BETWEEN ALL OF US.
ALL IT TAKES IS ANOTHER COUNTY YOU CONTROL, WELL, COME AND GO LAST YEAR IT WAS SIX AND HALF, SEVEN PERCENT INCREASE BECAUSE THEY GOT A HUGE INFLUX OF STATE DOLLARS.
THEY PUT A LOT OF IT IN SALARY.
WHERE BEFORE THEY PRETTY MUCH HAD BEEN TOWARDS THE BOTTOM.
THEY THEY DID NOT FARE WELL IN MEDIATION AND THE OTHER WAS, I THINK ONE MAY HAVE JUMPED UP THERE NOW WITH THEIR INCREASE.
>> YEAH, WHAT'S THERE'S LOW, TALBOT, BUT WE'RE NECK AND NECK WITH DORCHESTER, WE'RE ABOVE.
DID WE TRY TO STAY NECK AND NECK WITH TALBOT AND DORCHESTER.
IT'S NICE IF WE CAN, BUT WE KNOW THEY'VE GOT DEEPER POCKETS.
THEY'VE JUST BEEN MANDATED THROUGH THEIR MEDIATION TO HAVE TO DIG INTO THEIR DEEPER POCKETS.
THIS HELPED US, THE MEDIATION ON THIS.
THAT WAS A GOOD BYPRODUCT. NOBODY LIKED IT.
WE NEVER WANT TO END UP THERE AGAIN BECAUSE OF THE ASSOCIATION, THAT GREAT CONVERSATIONS.
BUT SOMETHING POSITIVE DID COME OUT OF IT BY US BEING ABLE TO CLOSE THE GAP ON THE BLUEPRINT STUFF ALREADY AND TO BE ABLE TO GET THERE.
BUT IT WILL BE HOW WE STAY COMPETITIVE GOING FORWARD.
>> CAN YOU ELABORATE ON BUS CONTRACTS? IS THAT FOR LLC OR IS THAT FOR EMPLOYEES, FOR THE COUNTY?
>> THAT'D BE THE LLC CONTRACTS.
WE RENEWED OUR FIVE-YEAR AGREEMENT WITH OUR LLC, SEPTEMBER.
>> IT WAS SEPTEMBER. SO WE CLOSED ON IT AFTER OUR BUDGET CYCLE.
NOW WE'RE TRIMMING THE BUDGET UP TO MATCH WHAT WE AGREED TO ON OUR FIVE-YEAR AGREEMENT WITH OUR CONTRACTOR.
>> HOW MANY DRIVERS ARE IN THE LLC?
>> IT'S SOMEWHERE THAT MR. MANDEL'S I HEAR HE'S ILL. SOMEWHERE IN THE 30-70 RANGE.
IS THE NUMBER OF DRIVERS WHO ARE CONTRACT DRIVERS.
>> BUT THAT FIGURE ALSO REPRESENTS THE BUSES THAT WE LEASE.
IT'S NOT JUST THE LLC BUS CONTRACTORS, IT'S THE LEASE PAYMENTS FOR WATERBED EMPLOYEES WHERE WE LEASE THEIR BUSES FROM THEM INSTEAD OF US EARNING THE BUS.
>> WE'RE DOING OKAY. WE'VE BEEN ADDING SOME.
WE'VE BEEN ABLE TO ADD AT A RATE FASTER THAN WE LOSE.
CDL DRIVERS ARE IN HIGH DEMAND, BUT THIS YEAR, AGAIN, I KNOCK ON WOOD.
THIS YEAR WE'RE FARING BETTER THAN LAST YEAR, SO WE'RE FAIRING BETTER THIS YEAR.
>> SOME OF THIS HAS TO DO WITH SOME OF THE DRIVERS ARE EMPLOYEES OF THE COUNTY, CORRECT?
>> WE ARE LEASING THE BUSES BACK FROM THEM.
>> BECAUSE THERE'S A MAINTENANCE FACTOR AND THERE'S A WHOLE FORMULA THAT COMES INTO PLAY WITH THAT.
>> SO 1100 WILL STILL BE DONE IN OUR SHOP?
>> THAT'S WHAT YOU'RE STILL WORKING.
>> WE'VE HAD TO MOVE SOME OF OUR STUFF OUT, NOT JUST BECAUSE YOU CAN'T DO.
[INAUDIBLE] IT JUST TAKES THE PRESSURE OFF.
IT'S A BALANCING ACT. WHAT IS THE BEST USE OF RESOURCES? THIS SEEMS TO BE WORKING ON OUR END.
>> YES, IT SEEMS TO BE WORKING ON OUR END AS WELL.
WE APPRECIATE THE PARTNERSHIP WITH IT.
I THINK THE COST PER HOUR OF LABOR IS A LOT MORE REASONABLE DOING IT THIS WAY THEN?
>> ANY OTHER QUESTIONS ON OPERATING BUDGET?
>> I KNOW DON INCLUDED ON HERE OUR CAPITAL PROJECTS.
[00:40:08]
THE COMMISSIONERS HEARD FROM US FOR A CAPITAL IMPROVEMENT PLAN.THE NUMBER ONE PROJECT GOING THERE WAS VETALSBERG ROOF REPLACEMENT.
FETALS BERG'S IN DESPERATE NEED OF A ROOF.
IT HAS BEEN PROVED PRELIMINARILY BY THE IAC TO MOVE FORWARD AS A GROUP TO BE DONE THIS SUMMER.
WE DON'T HAVE THE FINAL TOTALS ON WHAT WILL BE THE OFFSET UP THERE ORIGINALLY, OR THE FEDERAL PER GROUP IS COMING OUT AT A PRICE HIGHER THAN THE ORIGINALLY ROOF.
THE COUNTY SHERIFF LOOKS TO BE SOMEWHERE IN THE NEIGHBORHOOD OF 400.
IT'S 400 AND SOMETHING IS THE COUNTY SHERIFF ON THE FETALS BERG ROOF PROJECT.
AGAIN, WE APPRECIATE THE COMMISSIONER'S SUPPORT IN THESE THINGS FOR US AS A SCHOOL SYSTEM, AS WE TALKED ABOUT WHEN WE TALK ABOUT THE CAPITAL IMPROVEMENT PLAN, WE'RE GOING TO BE IN THE ROOF BUSINESS FOR SEVERAL YEARS.
THAT'S WHAT OUR NUMBER ONE PRIORITY IS.
IT'S HARD FOR US TO CHEW OFF MORE THAN ONE ROOF A YEAR.
IF OPPORTUNITIES PRESENT THEMSELVES TO BE ABLE TO DO MORE THAN ONE YEAR, WE HAPPY TO HAVE CONVERSATIONS WITH YOU GUYS IF THAT OPPORTUNITY PRESENTS ITSELF.
PART OF IT FOR US COMES INTO IS HOW QUICKLY CONTRACTORS CAN GET IN TO GET THE WORK DONE DURING THE SUMMER BECAUSE ROOFS HAVE TO BE DONE IN THE SUMMER AND IT JUST COMES DOWN TO HOW MUCH CAN SOMEBODY GET DONE.
OUR NEXT COUPLE AFTER FETALS BERG NORTH CAROLINE HIGH SCHOOL.
NORTH CAROLINE HIGH SCHOOL SHOULD BE THE NEXT ONE.
IT'S SO LARGE AND HAS TO BE DONE PROBABLY IN TWO SEGMENTS.
NO WAY THEY'LL GET IT DONE IN ONE SUMMER, SO THAT'LL PROBABLY BE A TWO-PARTER AND THEN KERNEL INTERESTS IN MIDDLE SCHOOL AFTER THAT WOULD BE COMING ALONG NEXT.
>> WE HAVE A UNIQUE CASH-FLOW, NOT A PROBLEM.
NOT AN OFFER, BUT IT NEEDS SOME INFORMATION.
IF YOU COULD GET YOUR FEDAL BERG WITH TEED UP, WE'LL GET YOUR NEXT ONE TOO.
CAUSE WE MAY IF THE STATE WILL MATCH IT IN THE SAME TIMELINE.
YOU MAY HAVE AN UNUSUAL SITUATION THAT REQUIRES US TO SPEND A CERTAIN TYPE OF MONEY IN A CERTAIN WINDOW.
I'M BEING VERY CAREFUL HOW I SAY THAT TOO.
IT'S MORE THAN TWICE THIS NUMBER.
WHILE I DON T KNOW THAT THE COMMISSIONERS WILL NECESSARILY WANT TO DO ALL OF IT FOR RUSE.
IF WE CAN KNOCK TWO OUT AND THEN BE ABLE TO GET SOME BREATHING ROOM IN OUT YEARS WHERE WE MAY HAVE SOME LATER YEARS, TWO OR THREE YEARS OUT, THAT MAYBE BENEFICIAL TO THIS.
>> BUT THAT'S NOT A PROMISE THAT'S A IF YOU CAN GET THOSE NUMBERS AND YOU GET THE STATE TEED UP, YOU MAY BE ABLE TO KNOCK OUT, YOU MAY ALSO BE ABLE TO GET SOME.
YOU GET THE SAME COMPANY THAT GETS YOU THE PRICING AND YOU MIGHT BE ABLE TO DO BETTER.
YEAH, SOMETIMES THAT WORKS, SOMETIMES AND SOMETIMES IT DOESN'T.
>> BUT NOW, I APPRECIATE THAT AND WE CAN DEFINITELY LOOK AT THAT. [OVERLAPPING]
>> IT IS SOMETHING THAT WE MAY HAVE COME AVAILABLE.
>> A COUPLE OF OUR OWN COUNTY NEW PROJECTS AND WE HAVE CERTAIN TYPES OF FUNDING FOR THAT TO BE SPENT IN CERTAIN WINDOWS OR GET IN TROUBLE FOR A VARIETY OF REASONS.
IF IN FACT WE HAVE TO SHIFT THINGS AROUND, THIS MIGHT BE AN INTERESTING WAY TO SORT OF PAY IT FORWARD IN A WAY THAT WOULD GIVE US A BREAK.
YOU FOLLOW ME, THIS IS BALANCING ACT AGAIN.
>> I DON'T WANT TO SAY HOUSE OF CARDS BECAUSE THAT IMPLIES THAT SOMETHING WILL FALL DOWN TOO HARD.
IT'S MORE ABOUT GETTING THE RIGHT RESOURCE IN THE RIGHT PLACE AT THE RIGHT TIME.
>> WHAT WOULD OUR PART OF NORTH CAROLINE HIGH SCHOOL BE ROUGHLY?
>> DEPENDING ON WHERE THE FORMULA FALLS IN, OUR INITIAL ROUGH ESTIMATE WITH THE ISE WAS CLOSE TO 900,000.
>> THAT'S THE ENTIRE BREADTHS.
BUT AGAIN, KEEP IN MIND THAT EVEN IF IT WAS THE ONLY ROUTE BEING DONE IN THE SUMMER, IT'S UNLIKELY THEY BEGAN TO DO THE WHOLE THING.
THEY COULD DO 80 PERCENT, 75 PERCENT, POSSIBLY BY LAYOUT OF THE BUILDING, BUT THEY COULD NOT TACKLE ALL HUNGER IN ABOUT SIX WEEKS.
>> KERNEL MIDDLE ROOF JUST AS AN INFORMATIONAL PIECE AND AGAIN I DON'T WANT TO MAKE ASSUMPTIONS.
WHEN YOU RENOVATE DEPENDS ON THE AGE OF CERTAIN PARTS OF THE BUILDING FOR WHAT MONEY CAN BE USEFUL.
PUBLISHED IN MIDDLE SCHOOL IS THE RENOVATION WAS COMPLETED PROBABLY ABOUT 15 YEARS AGO.
[00:45:06]
THE ROOF WAS NOT OLD ENOUGH AT THE TIME.THAT'S WHY IT WASN'T DONE WITH THAT RENOVATION PROJECT.
>> TWENTY YEARS AS A MEMBER IN LIFE?
>> IT'S ROUGHLY 20. TWENTY BEFORE THEY START KICKING IN.
>> NORMALLY I HATE STOCKING THESE THINGS BECAUSE IT MEANS 20 YEARS LATER YOU GOING TO HAVE TO DO ABOUT THE SAME TIME AGAIN, [LAUGHTER] [OVERLAPPING] SOMEWHERE.
>> I'M NOT [INAUDIBLE] [LAUGHTER].
>> NORMALLY WE DON'T LIKE TO DO THIS BECAUSE IT PUSHES US DOWN THE ROAD THEN WE HAVE THE SAME DUAL INVESTMENT AT THE SAME TIME.
THIS IS AN EXTREMELY UNUSUAL FINANCIAL SITUATION THE COUNTY FINDS ITSELF IN.
IT'S A GOOD SITUATION. NOT A BAD ONE.
IT'S JUST WE HAVE SEVERAL DIFFERENT POTS OF MONEY THAT HAVE FUNDING TIMELINES ON THEM.
IF THAT'S RIGHT, SO NINE FOR ONE AND FOUR FOR THE OTHERS, ONE FROM THREE.
WE COULD IN THEORY MAKE THAT WORK IN A SINGLE CYCLE.
BUT IT DEPENDS ON HOW SOMETHING ELSE PENCILS OUT SO I CAN'T TELL YOU FOR SURE.
WHAT I WILL TELL YOU IS THAT I WILL NOT A YEAR FROM NOW BE ABLE TO SAY THE SAME THING.
>> I WOULD ASSUME THE PROJECT HAS TO BE COMPLETED BY THEN.
>> I JUST WANTED TO MAKE SURE [OVERLAPPING]
>> OBLIGATED AND COMPLETED ARE TWO DIFFERENT WHEN IT COMES TO [OVERLAPPING].
>> WHAT OF THE FUNDING STREAM IS A LITTLE MORE TIGHTER ON SPENDING BUT THE SECOND THAT WE ARE OBLIGATED.
>> I HAD A FEELING DOING, THAT 20 YEARS.
WHO KNOWS IN 20 YEARS, IF ONE OF THOSE SCHOOLS MIGHT NEED TO BE [INAUDIBLE]
>> THERE IS NO NEED TO BE TOO CONCERNED ABOUT THAT, YOU MAY NEED A WHOLE ANOTHER PLAN AT THAT POINT.
IT'S JUST NORMALLY WE TRY AND SPREAD THESE LEAVES ARE TRYING TO STACK ON TOP OF EACH OTHER LIKE THAT.
FOR FEAR THAT WE WOULD THEN BE PUTTING OURSELVES INTO A CYCLE OF THAT REQUIREMENT.
BECAUSE YOU DEFINITELY WON'T BE ABLE TO GO EARLY ASSUMING THAT THE STATES CONTINUE IN THE SAME MODEL.
IT MIGHT BE ABLE TO GO IN YOUR LATER, BUT YOU WON'T BE ABLE TO DO 19 YEARS AND SO 20.
>> NOW THAT WE ARE NOTICING IT, A LOT OF GOVERNMENT BUILDINGS THERE USED TO BE GROCERY STORES SO WE PRESUME THE ONE OTHER GROCERY STORES WILL BE TURNED INTO AN ELEMENTARY SCHOOL OR WALMART [LAUGHTER] WE'RE SITTING IN A FORMER GROCERY STORE RIGHT HERE.
>> YEAH, WE'RE IN ONE. TEMPORARILY BECAUSE STILL WAITING FOR OUR ROTATION OF THE WEST BANK TO BE FINISHED.
>> SINCE WE HAVE ALL OF OUR FINANCIAL PEOPLE HERE, I HAVE A QUESTION ABOUT THE SCHOOL RESOURCE OFFICER PAYROLL SYSTEM.
BECAUSE I KNOW AT SOME POINT WE WERE TRYING TO PURLIN RUN THE SCHOOL RESOURCE OFFICERS THROUGH THE MORTGAGE EXTENSION.
NOW, HOW DOES IT WORK FOR THE SCHOOL RESOURCE OFFICERS TO GET PAID? HOW'S THAT PAYROLL HANDLED? [LAUGHTER]
>> ALL OF THE CURRENT SRS ARE PAID THROUGH THE COUNTY.
WHAT WE HAD TURNED TO IN OUR OFFICES, BILL THE BOARD OF ED EVERY QUARTER FOR THE EIGHT OFFICERS THAT WE HAVE.
THERE ARE THE THREE OFFICERS THAT WERE THE ORIGINAL GROUP THAT WERE LOCATED AT THE MIDDLE SCHOOL OR THE TWO HIGH SCHOOLS, I BELIEVE.
THEY GET BUILT AT A 100 PERCENT RATE.
WHATEVER HAPPENS COST-WISE FOR THOSE THREE OFFICERS, THEY GET A BILL EACH QUARTER VENTURES UP DOLLAR FOR DOLLAR WE GET BACK.
WHEN IT COMES TO THE FIVE SRS THAT WERE THE ADDITIONAL ELEMENTARY OFFICERS.
THE DISCUSSION OF THE ORIGINAL TIME WAS THEIR BUDGET OR COST WAS ESTIMATED AT AROUND $400,000 AND AT THE TIME, THERE WAS AN INCLINATION THAT IF WE ADDED $400,000 TO OUR AT THAT TIME MOE NUMBER WHO THE BOARD OF ED COULD THEN IN TURN PAY US BACK $400,000 AND THAT WOULD GO TOWARDS OUR BLUEPRINT SLASH MAINTENANCE OF EFFORT.
[00:50:05]
TO THIS DAY, WE STILL SHOW A SEPARATE 400,000 DOLLAR LINE ITEM IN THE BUDGET.BUT IN THE VERY END, YOU TAKE THAT 415.6, THAT'S THE LINE ABOVE IT, AND YOU GET THE 16 MILLION BLUEPRINT NUMBER THAT WE HAVE TO.
>> I'VE ASKED THIS QUESTION EVERY CHANCE I'VE GOTTEN TO EVERY PERSON THAT I CAN FIND TO ASK AND I ALWAYS GET THE SAME ANSWER.
CAN THAT BE COUNTED TO OUR MOE [INAUDIBLE]? CORRECT?
>> NO MATTER HOW MANY TIMES I ASK THEY NEVER HAVE THE ANSWER.
>> YEAH, IT WAS A GAMBLE WHEN WE DID IT.
>> BUT MY QUESTION IS, IS THERE A WAY TO DO IT THAT WOULD MAKE IT EASIER FOR EVERYBODY?
>> AARON ONCE HAD A SIMILAR CONVERSATION.
NOT TO GET INTO THE BORING DETAILS WITH EVERYONE BUT ESSENTIALLY, WE'RE HAVING TO KEEP TRACK OF EIGHT OFFICERS AND TWO DIFFERENT DEPARTMENTS SEPARATE AND THE SHERIFF'S OFFICE WORKING OUT EVERY SINGLE PURCHASE AT A CERTAIN PERCENTAGE TO ONE DEPARTMENT BECAUSE IT HAS THREE INDIVIDUALS, RATHER THAN BUYING TASERS. IT'S CUMBERSOME ON US AND THE SHERIFF'S OFFICE.
>> WHAT WOULD BE THE DOWNSIDE OF DOING IT, BRINGING IT BACK SO THAT YOU WOULDN'T HAVE TO GO THROUGH WOULD THERE BE A DOWNSIDE TO THE BOARD OF EDUCATION?
>>THE DISCUSSION THAT I WOULD RECOMMEND OR LOOK TO HAVE IS THAT WE ESSENTIALLY FIGURE OUT WHAT THAT BUDGETED NUMBER WOULD BE.
BECAUSE ESSENTIALLY [OVERLAPPING].
>> FROM OUR PERSPECTIVE, IT WOULD MAKE THINGS EASIER BECAUSE WE KNOW WHAT THE EXACT BUDGETED NUMBER WOULD BE AND THEN WE WOULD JUST PAY THEM AN EQUAL.
>> OR HAVE YOU BEEN INVOLVING? WHY WOULDN'T WE RUN THIS THROUGH THE SHERIFF'S DEPARTMENT? THAT'S MY POINT.
>> ESSENTIALLY, THEY'RE STILL PAYING US FOR THAT SERVICE.
THEY'RE PAYING US 400 PLUS PROBABLY CLOSE TO $700,000 FOR THOSE OFFICERS TO BE THERE.
>> CAN WE NOT UNDO THAT? I THINK IT WOULD BE.
>> WE CAN BECAUSE IT'S NOW FACTORED INTO THE MOE NUMBER.
>> OR WHAT WE COULD DO IS FOR EXAMPLE WRITE A STRAIGHT MOU THAT THIS IS THE AMOUNT AND THIS IS THE SERVICE, THEN IT WOULD TAKE SOME OF [OVERLAPPING]
>> WE WOULD HAVE TO OPTIMIZE EVERY PROGRAM.
>> THEN I THINK THAT WAS MY THOUGHT WAS IF WE DECLARED $700,000, IT'S GOING TO BE THE COST FOR THOSE EIGHT OFFICERS, DIVIDE THAT INTO FOUR QUARTERS AND FILL IN THAT WAY.
>> IT JUST BECOMES A CONTRACTUAL SERVICE VERSUS A DIRECT REIMBURSEMENT FOR IT JUST PULLS ALL OF THE UNNECESSARY ACCOUNTING OUT OF IT AND THEN WE JUST HAVE TO DO IT AND SHOW IT ON OUR END AS THE COST OF THE OFFICERS, JUST LIKE WE DO EVERY OTHER OFFICER.
TO DO THAT, WE WOULD NEED TO JUST ENTER INTO AN MOU BETWEEN DEPARTMENTS, RIGHT?
>> YEAH IT'D PROBABLY A ONE-PAGER.
>> WHAT WOULD HAPPEN IF WE PULLED IT BACK OUT AND BOARD THEN THAT 400,000 THAT'S UPON THEM AND WE WOULD.
>> WE WOULD CONTINUE TO PROVIDE THEM THE JUST USING 23S NUMBERS, THE 16 MILLION, BUT IF WE WANTED TO PULL THAT BACK, WE WOULD THEN NOT FILL THEM IN ACCOUNTING FUNDED OUT OF POCKET FOR THE 400.
WE WOULD ESSENTIALLY LOSE 400,000 AND WE ARE OUT OF THEM.
>> ONCE YOUR STARTED WITH THE MOE [OVERLAPPING].
>> JUST AGAIN FROM ANOTHER PERSPECTIVE TO MAKE SURE I'M HEARING BASICALLY WHAT WOULD HAPPEN.
THAT WOULD BE A FEEL OF AN INCREASE TO THE BOARD OF ED AN MOE OF 400,000 NOT AN INCREASE TO MOE. TRUE.
>> JUST MAKING SURE THAT WE ARE OKAY.
[OVERLAPPING] BECAUSE I THINK THAT THE DOLLARS WE'LL STAY THE SAME.
>> WE GIVE THE 400,000 TO YOU I BELIEVE ONCE A QUARTER, I THINK THAT'S SET UP IS 100,000 A QUARTER WHERE YOUR MOE THAT 15.6 IS COMING EACH MONTH DIVIDED INTO 12.
WE WOULD JUST MERGE IT INTO THE ONCE A MONTH PAYMENT AND MAKE IT EASY GOING FORWARD.
>> LET'S PUT IT ON OUR AGENDA TO TALK ABOUT SO THAT IF THERE'S AN ECHO YOU THAT CAN MAKE THIS SIMPLER AND EASIER FOR EVERYBODY.
WE CAN GET STEWARD TO DRAFT UP SOMETHING.
BECAUSE IT SOUNDS REALLY CUMBERSOME TO ME AND I DON'T HAVE TO DO IT, BUT IF YOU CAN MAKE THIS SIMPLER LET'S DO IT.
>> IT'S HARD ENOUGH TO BE A THREE PARTY SO WE WOULD HAVE TO SHARE [INAUDIBLE] THE MOST LIKELY, WE NEED TO ALSO BE A SIGNATORY TO THAT.
I STILL DON'T THINK IT NEEDS TO BE PARTICULARLY COMPLICATED BECAUSE WE'RE ALREADY DOING IT,
[00:55:03]
SO IT'S VERY STRAIGHT.>> WE'LL JUST MEMORIALIZE IT [OVERLAPPING].
>> THE SHERIFF'S OFFICE HAS SOMETHING TO DO PROBABLY FOR THE PAST TWO YEARS.
>> YOU VOTED UP TO ME THE OTHER DAY.
>> WELL, THAT MAKES SENSE. [LAUGHTER]
>> HOW MUCH ARE THE FUNDING DO YOU HAVE LEFT? I KNOW YOU WERE USING SOME OF THAT FOR THE AFTER-SCHOOL PROGRAM. IS THAT CORRECT?
>> AARON COULD PROBABLY GIVE A LITTLE BIT MORE OF AN ACCURATE.
>> ROUGHLY I'D SAY LITTLE OVER 10 MILLION.
>> THAT'S ONCE IT'S GONE, IT'S GONE.
WHAT ARE YOUR PLANS FOR THE FUNDING.
WE TRIED AS BEST WE COULD TO KEEP IT OUT OF POSITIONS KNOWING THAT WE'RE GOING TO HAVE TO SUSTAIN AND WE'D HAVE THE FUNDING CLIFF.
BUT WE DID ADD SOME TECHNOLOGY.
WE ADDED THREE TECHNOLOGY POSITIONS BECAUSE WITH ALL THE TECHNOLOGY EQUIPMENT THAT WE WERE PURCHASING, WE DID A READING PROGRAM, WE DID SOME MATH PROGRAM, THERAPEUTIC SUPPORT CLASSROOMS WITH NURSING AND WELLNESS.
WE'VE LEASED ALL OF OUR LAPTOPS AND DESKTOPS OVER TIME WITH [INAUDIBLE] AND WE'RE WORKING THROUGH LEASE RENEWALS TO DO ANYWAY, BUT WE'RE ALSO WORKING THROUGH SHIFTING SYSTEM IN OUR MIDDLE AND DOWNGRADES TO CHROMEBOOKS.
MORE DURABLE, A LOT CHEAPER TO MAINTAIN, A LOT CHEAPER.
THEY DON'T BREAK AS EASY. WITH LITTLE KIDS IT MAKES A HUGE DIFFERENCE.
WE'RE USING FUNDING TO HELP OFFSET SOME OF THOSE COSTS, WE'RE TRYING TO LOOK AT THOSE THINGS THAT WE TYPICALLY HAVE ARE RECURRING OPERATING THAT WE NEED TO GET AHEAD ON.
WE'VE GOT SOME HVAC UPGRADES THAT WE NEEDED TO DO.
WE DIDN'T REALIZE THE OUTSPEND FOR HVAC UPGRADES CAN BE.
WE'VE HAD SOME OTHER UPGRADES THAT WE'VE HAD TO DO IN TERMS OF PLACE A LOT OF CARPET.
[OVERLAPPING] I'M TRYING TO USE IT FOR ONETIME.
[NOISE] ONE ON CAPITAL OR EQUIPMENT NEEDS OR CURRICULUM NEEDS.
THE CONVERSATIONS HAVE SUDDENLY GO AROUND TEACHERS, TALKING ABOUT OUR BUDGET PROCESS.
THAT'S THE REASON WHY THEY HAVE A LOT OF NEW CURRICULUM COMING OUT ON MATH.
[LAUGHTER] WE HAVE MONEY TO BUY THEM.
IF NOT, CAROLINE WAY WOULD BE WE DO ONE GRADE LEVEL AT A TIME IN 12 YEARS TO TRY TO GET ALL THE WAY THROUGH IT AND THEN RESTART THE CYCLE.
WE HAVE THE ABILITY TO JUMP AHEAD, SO WE'RE TRYING TO USE IT ON THINGS LIKE THAT AS WELL.
USE THE MONEY FOR AFTER-SCHOOL PROGRAMMING, FOR SUMMER PROGRAMMING.
OFFSETTING COSTS THERE AS WELL TUTORING.
>> A LOT FOR TUTORING AND TRY TO CLOSE THE GAP WITH SOME OF OUR STUDENTS.
>> WHEN DOES IT HAVE TO BE SPENT?
>> I WAS JUST GOING TO SAY THERE'S A LOT OF CHATTER ABOUT POSSIBLE EXTENSIONS BECAUSE I THINK EVERYBODY IS [LAUGHTER] THE FUNDING CLIFF.
WE'LL SEE HOW THAT PANS OUT BUT WE DO HAVE A PLAN TO HAVE IT SPENT DOWN BY THE.
>> THE 10 MILLION, THE ITEMS THAT YOU GUYS DISCUSS, THAT'S WHAT THAT'S OBLIGATED TO GO TOWARDS?
>> IT'S OKAY, THAT'S FINE. THANK YOU.
>> I NOTICED ON LAST YEAR'S AUDIT THAT THERE WAS A DECREASE IN THE OPEB LIABILITY AT $30 MILLION.
[LAUGHTER] THAT NUMBER JUMPED OUT.
>> SURE. I DON'T KNOW IF EVERYBODY IN THIS ROOM KNOWS WHAT OPEB IS BUT OTHER POST EMPLOYMENT BENEFITS.
THE BENEFITS THAT WE PAID TO OUR RETIREES, BE IT MEDICAL, PRESCRIPTION DRUGS, DENTAL, VISION.
WE HAVE AN OUTSIDE ACTUARY, BOLTON, WHO ACTUALLY COMES IN AND DETERMINES WHAT OUR OPEB LIABILITY IS AND THEN AS YOU KNOW, OUR EXTERNAL AUDITORS COME IN AND DO THE TESTING BEHIND THEM JUST TO MAKE SURE IT'S EVERYTHING IS GOOD TO GO.
THE MAIN SENSITIVITY FACTOR IN OUR OPEB LIABILITY HAS BEEN THE MARKET VOLATILITY.
AS YOU KNOW THE RETURN ON INVESTMENT JUST KEEPS GOING UP AND DOWN.
THE FIGURE THAT YOU ARE LOOKING AT, OUR OPEB LIABILITY ACTUALLY WENT DOWN BY A LITTLE OVER 30 MILLION.
THE YEAR BEFORE IT ACTUALLY WENT UP BY ABOUT 60 MILLION.
FOR THE SAME REASON, IT WAS JUST A MATTER OF THE RATES CHANGING.
IT'S MAINLY JUST BASED ON THE LONG-TERM BOND YIELDS AND WHAT THE CURRENT MARKET RATE IS AT THAT POINT IN TIME.
IT'S WHEN THE LIABILITY DECREASES WHEN THE RATES RISE.
[01:00:07]
THIS IS JUST ME, I DON'T HAVE A CRYSTAL BALL, I'M NOT AN ACTUARY, BUT I THINK IT'S GOING TO DECREASE AGAIN.BUT THEN AT SOME POINT IT'S GOING TO TURN AROUND AND DO THE OPPOSITE.
>> THIS IS FOLLOW UP A LITTLE BIT. THE OTHER THING I NOTICED WAS THE FUND BALANCE AND I KNOW I TALKED TO DR. SIMMONS A LITTLE BIT ABOUT THAT.
THE PLANNING, WHAT YOU'RE PLANNING OR WAS IT JUST TO GET AHEAD OF A LOT OF STATE GRANTS?
>> YES, SO OUR ORDER RECOMMENDS THAT OUR FUND BALANCE BEING CLOSER TO 10 PERCENT.
THEY WANT THREE MONTHS OF OPERATING EXPENSES THAT WE REALLY SHOULD BE A LOT MORE HIGHER THAN 10 PERCENT.
BUT 10 PERCENT RANGE OUR BOARD POLICY THAT WE HAD IN SETTING THE FUND BALANCE WITH THE COMMISSIONERS, PROBABLY BACK IN '04,.
I THINK THAT ROUGHLY WHEN IT WAS SET UP GAVE US A RANGE OF 1-10 PERCENT WITH OUR FUND BALANCE.
A BIG PART OF MEETING OUR FUND BALANCE.
OBVIOUSLY THERE'S A SAVINGS ACCOUNT PERSPECTIVE OTHER THAN THAT.
IT'S GOOD TO HAVE MONEY FOR IF WE EVER [INAUDIBLE] ISSUE OR AN HVAC ISSUE, THOSE SORT OF THINGS.
A BIGGER PIECE THAT'S PROBABLY BEEN ONE OF THE BIGGEST CHANGE IS AND AARON COULD SPEAK MORE TO IT.
BUT 20-30 YEARS AGO, WE GOT A LOT OF OUR STATE MONEY UPFRONT WE DON'T HAVE ANYMORE.
A LOT OF OUR GRANT MONEY, A LOT OF OUR FUNDING COMING FROM THE STATE.
WE GET NOTICE OF GRANT AWARDS OR WE GET BASICALLY YOU CAN GO AHEAD AND START SPENDING BUT YOU DON'T HAVE THE CASH FLOW AT BACK IT UP.
WE HAVE TO SPEND AND THEN SUBMIT AND GET IT IN ARREARS AND SOMETIMES IT TAKES WAY LONGER THAN IT SHOULD [OVERLAPPING].
>> BUT USUALLY IT'S AT LEAST A COUPLE OF MONTHS BEHIND IN THE REIMBURSEMENT.
WE'VE GOT TO HAVE CASH FLOW AND OUR FUND BALANCE REALLY PROVIDES US THAT CASH FLOW.
WHEN FOLKS SEE OUR FUND BALANCE OF BEING SIX MILLION IN THAT BALLPARK AREA FOR $100 MILLION BUDGET, SIX PERCENT.
WE'RE HITTING THAT FOR CASH FLOW.
WE'VE HAD SOME MOMENTS WHERE WE'VE REALLY NEEDED IT.
LEADS GRANT THAT MSB OFFERED, WE WERE ABLE TO USE SOME OF THAT MONEY TO GIVE STIPENDS TO EMPLOYEES.
IT'S ONE-TIME MONEY SO WE CAN'T TIE THEM TO SALARIES SO YOU TRY TO OFFSET IT BY GIVING EVERYBODY A RETENTION BONUS.
WELL, WE HAD A CASH FLOW THAT OUT AND IT'LL BE 60 DAYS BEFORE WE SEE THE REIMBURSEMENT BACK.
WHEN YOU GIVE EVERY EMPLOYEE 1,500 BUCKS, ROUGHLY 1,000 EMPLOYEES IS 1,500 BUCKS.
EATS IT UP REAL FAST OUT OF YOUR CASH FLOW AND THEN WE'VE GOT TO SIX WEEKS, 60 DAYS TO GET THAT BACK IN.
THAT'S JUST ONE EXAMPLE OF WHY THAT FUND BALANCE IS NECESSARY.
WHY EACH YEAR WE LOOK AT IT OR IT LOOKS AT IT AND ALL OF US DO TO KEEP AN EYE ON IF WE HAVE UNSPENT FUNDS.
THERE ARE THINGS WE WANT TO USE UNSPENT FUNDS FOR AND TRY TO GET AHEAD AND TYPICALLY SOME CAPITAL GAINS OR SOME ONE-TIME EXPENSES AND WE HAVE THE EQUIPMENT COST TO GET THOSE IN, BUT WE ALSO DON'T WANT TO SPEND THE ENTIRE BIT THERE.
WE WANT TO HOLD ONTO AND START PUTTING A LITTLE BIT MORE BACK IN THE RAINY DAY FUND.
TYPICALLY, WE'RE IN THE BALLPARK OF A COUPLE OF HUNDRED GRAND GOING IN IT.
WE HAD SOME YEARS DUE TO COVID INFLUX OF MONEY WHERE WE CAN ALLOCATE MORE TO IT THAN WE HAVE.
BUT I THINK IT'S BEING FISCALLY SMART TO TAKE ADVANTAGE OF, BUT AT THAT TIME TO TRY TO BUILD THOSE RESERVES BACK UP.
BECAUSE AGAIN, AS OUR BUDGET GROWS, THE AMOUNT OF MONEY VIA RESERVE IT'S GOING TO GROW AS WELL.
NUMBER ONE QUESTION [OVERLAPPING] WHEN IT COMES OUT IS BECAUSE IT'S, WELL, YOU GUYS WERE SITTING ON THIS MUCH MONEY CAN'T YOU JUST GIVE IT?
>> YOU CAN BUT THE SAME THING THAT WE'D RECOMMEND EVERYBODY IN HERE.
WE ALL WANT TO HAVE A SAVINGS BECAUSE FOR VARIOUS REASONS, BUT WE'RE JUST LIKE A HOME BUDGET, JUST A LOT MORE ZEROS.
>> WE TALKED ABOUT FUND BALANCE A LOT.
>> ANY OTHER QUESTIONS OR CONCERNS?
>> ONLY ONE OTHER THING I'D LIKE TO SHARE WITH YOU GUYS BEFORE YOU GO.
BEFORE WE CLOSE UP THE MEETING IF ANYBODY ELSE ON THE BOARD HAS ANYTHING TO SHARE AS WELL.
CAROLINE COUNTY PUBLIC SCHOOLS IS GOING TO BE PARTNERING WITH SOME OTHER SCHOOL SYSTEMS AROUND THE STATE.
WE'RE MEETING LATER THIS WEEK AROUND THE REPORT THAT MSDE PUT OUT BACK IN OCTOBER.
THEY WERE REQUIRED TO DO THIS THROUGH LEGISLATION THAT WAS WRITTEN I THINK A YEAR OR TWO AGO, THAT LOOKS AT THE WAY THAT POVERTY RATES ARE CALCULATED IN SCHOOL SYSTEMS. MOVING FROM THE PAPER PRINT REVIEWS FORMS TO DOING IT BY CENSUS DATA.
WHEN YOU LOOK AT CENSUS DATA, WHAT'S THE AMOUNT OF POVERTY WITHIN A CENSUS AREA WOULD
[01:05:03]
INDICATE THE LEVEL OF POVERTY IN THE COUNTY WHICH WOULD THEN HAVE A DIRECT IMPACT ON FUNDS.THEN SCHOOL SYSTEMS WOULD GET THROUGH COMPENSATORY THROUGH THE FUNDS DATA.
WE WERE ONE OF THE COUNTIES THAT MSDE PICKED WHEN THEY RAN THEIR SAMPLE STUDY.
WHEN THEY DID THEIR STUDY, CAROLINE WAS THEY ONE THEY PICKED.
THERE WERE A COUPLE OF OTHER COUNTIES.
STRATEGIC THEY PICKED US, PARTLY PROBABLY BECAUSE WHEN THEY CREATED THEIR CENSUS BLOCK MAP, WE WERE THE ONLY COUNTY IN THE STATE AT THE TIME THAT HAD NO CENSUS TRACKS THAT HAD HIGHER INCOME.
HIGHER INCOME WAS DENOTED BY BEING HIGHER THAN AVERAGE COMBINED FAMILY INCOME OF GREATER THAN 88,000 DOLLARS.
WE WERE THE ONLY JURISDICTION IN THE STATE THAT HAD NOBODY IN THERE.
THEY'VE RUN SOME MODELING ON HOW FUNDING SHOULD BE ALLOCATED.
IT'S PREDICATED ON THE NOTION THAT IF YOU HAVE MORE POOR PEOPLE LIVING IN AN AREA EVEN IF YOU HAVE A WEALTHY PERSON THERE, EVERYBODY IN THAT AREA STILL TENDS TO HAVE LESS RESOURCES.
IF YOU HAVE A LOT OF WEALTHY PEOPLE AND ONE POOR PERSON THERE, THEY STILL HAVE ACCESS TO A LOT MORE RESOURCES THAN ONE POOR PERSON DOES BECAUSE OF LIVING AROUND A LOT MORE WEALTH.
IT'S THE NOTION. WHAT THEY PUT OUT AND WHAT WE'RE HEARING IS GOING TO BE AN MSDE PRIORITY FOR THIS YEAR THAT THEY'RE GOING TO BE ADVOCATING FOR IN INDIANAPOLIS OR [INAUDIBLE] IN THE PAST THEY WERE IN [INAUDIBLE], BUT THEY ARE GOING TO BE PUTTING OUT AN EFFORT TO TRY TO GET INTO LEGISLATION CHANGING THE COMPACT FORMULA FOR HOW SCHOOL SYSTEMS ARE FUNDED FOR KIDS LIVING IN POVERTY.
WHY DOES THAT MATTER TO US? BECAUSE THE MODEL THEY'RE PREDICTING AND THEY WANT TO PUT IN PLACE WOULD BE AN INCREASE IN CAP AID TO US OF MORE THAN 14 MILLION DOLLARS OF WHAT WE CURRENTLY GET FROM THE STATE.
THAT IN ITSELF HAS ME SAYING I NEED TO BE THERE WITH OTHER COUNTIES, WE NEED TO BE THERE WITH OTHER COUNTIES ARGUING FOR THIS.
IF IT'S GOING TO MOVE FORWARD IF WE'RE LOOKING TO CHANGE COMPENSATORY AID, THIS IS THE WAY TO DO IT THAT REALLY HELPS.
WHAT I WOULD ARGUE WITH THE EFFORT THAT'S GOING ON.
FINALLY, IN CONVERSATION PEOPLE ARE REALIZING THE UNIQUENESS OF CAROLINE COUNTY IN TERMS OF THE PHYSICAL SITUATION IN WHICH YOU ALL KNOW ABOUT, ABOUT PHYSICAL SITUATION IN WHICH WE ALL WORK AND RESIDE.
WE LOVE THE COUNTY, WE ALL DO.
WE WOULDN'T BE IN THIS ROOM IF WE DIDN'T.
YOU ALL KNOW THE TAX BURDEN BETTER THAN ANY OF US, YOUR STAFF DOES, BECAUSE YOU GUYS LIVE IT ON A REGULAR.
SOMETHING LIKE THIS PUTS A REAL BETTER LANCE AND UNDERSTANDING THAT JURISDICTIONS LIKE US CAN AFFORD TO GIVE MORE PROBABLY THAN WHAT WE ALREADY ARE.
THERE'S GOT TO BE A BETTER WAY THAT RECOGNIZES THE CHALLENGES THAT EXIST IN AREAS THAT CAN'T GO OUT TO JUST RAISE PROPERTY TAXES AND SEE A GREAT YIELD ON RETURN, WHICH IS WHY I WILL BE WITH SOME OTHER SUPERINTENDENTS WORKING ON THIS TOGETHER.
IF THERE'S AN OPPORTUNITY TO WORK WITH YOU GUYS OR WHATEVER IN TERMS OF WHERE THIS MAY GO, I WILL CERTAINLY BE IN TOUCH.
BUT THIS COULD BE A GAME CHANGER FOR PLACES LIKE CAROLINE COUNTY.
THEN WHAT I'VE FOUND IS OVER THE YEARS THAT PARTICULARLY LIKE WE'RE GOING BEFORE THE BOARD OF PUBLIC WORKS, IT HELPS IF YOU HAVE ELECTED OFFICIALS FOR YOURSELVES.
I THINK WE STARTED A [INAUDIBLE] BUT I THINK THAT IT SOUNDS TO ME LIKE IT WOULD CERTAINLY BE SOMETHING THAT WOULD BE WORTHWHILE FOR US TO PARTNER FOR OUR UNDERSTANDING, TO SUPPORT THE COUNTY.
I'LL KNOW MORE AFTER MY MEETING THIS WEEK AS WE TRY TO GAIN PLAN.
I WAS AMAZED AT SOME OF THE COUNTIES THAT HAVE SEEN POVERTY RATES ON AN INCREASE.
WE KNOW BALTIMORE CITY IS ALREADY AT HIGH POVERTY RATES BUT EVEN BALTIMORE COUNTY HAS JUMPED ABOUT 16 PERCENT PRETTY REASONABLE SWITCH, ABSOLUTELY SHOCKING WHEN WE TALK ABOUT BALTIMORE COUNTY.
BUT WE HAVE SOME POTENTIALLY VERY STRONG ALLIES IN COUNTIES THAT HAVE A LOT OF CONNECTED ELECTED OFFICIALS THAT COULD REALLY HELP US GROW.
WE CAN PULL OVER AS MUCH AS WE CAN TO TRY TO GET THERE.
>> THE STATE SUPERINTENDENT HAS USED CAROLINE AS AN EXAMPLE [OVERLAPPING] OF WHERE THE SYSTEM ISN'T WORKING PROPERLY AND THEY NEED TO FRESHEN UP AND BE THERE.
HE IS DEFINITELY A DATA-DRIVEN PERSON.
AT THE MAIN CONFERENCE, HE DID A LENGTHY PRESENTATION WHERE WE WERE ALL GIVEN THE NUMBERS AND THE DATA IN THE STUDY FROM THE INFORMATION AND MORE THAN ONCE HE WAS USING CAROLINE AS THE EXAMPLE IN A WAY WE WANT TO HEAR.
WE END UP TO SHORT END OF THE SPECTRUM THAT'S NOT THE WORD TO YOU IS MORE TECHNICAL BUT YOU ALL SEE IT.
[01:10:04]
WE ALL SUFFER IT ON A REGULAR BASIS AND IT'S NICE TO HEAR THAT COME FROM THE STATE SUPERINTENDENT AND IT LOOKS LIKE HE'S REALLY TRYING TO MAKE A DIFFERENCE.>> JOE, IT TOOK A GUY FROM TEXAS TO SEE IT AND TO REALIZE IT BECAUSE HE'S NOT FROM HERE BUT [OVERLAPPING]
>> YEAH. I'LL GIVE MS. GUTIERREZ FRESH EYES.
>> NO MORE PUBLIC WORKS BIG ACCOUNTS, RIGHT?
[LAUGHTER] THEY'RE FUN TO WATCH YOURSELF BECAUSE YOU'RE JUST SITTING THERE WATCHING PEOPLE THINK. BUT, YEAH.
>> YEAH. YOU GUYS HAVE ANY OTHER QUESTIONS OR BOARD MEMBERS ANY COMMENTS OR ANYBODY ELSE IF SOMETHING THAT HASN'T COME UP?
>> IS THERE ANYTHING ON THE HORIZON THAT YOU HAVEN'T TALKED ABOUT THAT HAS YOU SCARED OR CONCERNED?
>> NOTHING SCARED THERE. [LAUGHTER]
>> MS. WAKEMAN DECIDED TO COME BACK.
YEAH, SHE'S TOLD HER SHE DID DECIDE.
NO. IN ALL SERIOUSNESS, JEREMY, THE BIGGEST CONCERN I HAVE RIGHT NOW IS LOOKING AT THE GRAND SCHEME OF [INAUDIBLE] THE TEACHER SHORTAGE IS A NATIONAL ISSUE AND IT IS.
I CAN'T LOSE SLEEP OVER COLLEGES NOT TURNING OUT TEACHERS, SO WE'VE GOT TO FOCUS OUR EFFORTS ON RETAINING THE FOLKS WE HAVE.
WE'RE NOT ALWAYS GOING TO BE AT THE HALF OF THE PILE FOR SALARY BUT WE CAN DO OUR PART TO GET THE TOP OF THE PILE FOR ONE YEAR TO RETAIN STAFF.
[OVERLAPPING] WE'VE GOT TO FOCUS ON THAT.
BIGGEST CONCERN IN THE IMMEDIATE IN THE NEXT COUPLE OF YEARS, HONESTLY IS THE 60K.
I TRULY BELIEVE THE ONLY WAY WE GET THERE IS BY TOTALLY REVIEWING SCALE.
WE HAVE A COMMITMENT FROM OUR ASSOCIATION TO SIT DOWN NEXT YEAR AND DO JUST THAT.
THOSE ARE GOING TO BE THE BIG LIFTS TO GET THERE.
EVERYTHING ELSE AND I THINK, HONESTLY, THERE ARE THINGS WE'VE LIVED THROUGH JUST IN DIFFERENT VARIATIONS OVER TIME AND NOT BEING TOO POLLYANNA.
HONESTLY, AS LONG AS WE ALL KEEP DOING THIS AND WE HAVE SINCE YOU GUYS HAVE COME IN AS WELL I'M GOING TO LOCK THAT IN WE'VE HAD A TRADITION OF IT.
THAT'S WHAT MAKES ALL OF THIS DOABLE, IS BECAUSE WE ACTUALLY TALK, WE WORK THROUGH ANY CHALLENGES THAT POP UP AND WE FIGURE OUT HOW WE NEED TO APPROACH IT.
I THINK THAT'S REALLY IMPORTANT.
THAT WILL HELP COVER ANY BURDEN IN WHAT I'M SEEING.
>> WELL, WITH WHAT'S COMING STARTING TOMORROW, A NEW GOVERNOR, A NEW CONTROLLER, SIGNIFICANT CHANGES IN THE LEGISLATURE, A NEW ATTORNEY GENERAL.
WHAT ARE ALL OF YOU HEARING FROM [INAUDIBLE] OR OTHER SOURCES ABOUT WHAT'S COMING AND WHAT TO EXPECT, I MEAN.
WE'RE ALL READING THE NEWS AND HEARING THE NEWS AND SO FORTH, IT'S LIKE WHO KNOWS? BUT THE GOVERNOR, HE WAS VERY OPEN DURING HIS CAMPAIGN ABOUT WHAT HE CONSIDERED TO BE PRIORITIES AND I DON'T THINK HE'S BACKING DOWN FROM THAT.
BUT OVERALL, WHAT DO YOU GUYS SEE? YOU GUYS SEE COMING DOWN THE PIPE AND THAT'S PROBABLY IS AN UNKNOWN, BUT WE'RE PAST IT.
>>> I THINK THAT'S GOING TO BE VERY GREEN, AND I THINK THERE'S GOING TO BE A LOT OF PEOPLE.
THOSE HAVE BEEN THE TWO BIGGEST TAKEAWAYS.
I'M ACTUALLY ON ONE OF THE TRANSITION TEAMS AND EVEN THERE IT'S BEEN VERY FOCUSED ON THOSE TWO THINGS.
THIS IS STAINABILITY AND RE-STAFFING BOTH AT MML AND AT [INAUDIBLE] GOVERNOR [INAUDIBLE] WAS VERY SPECIFIC ABOUT A LARGE PORTION OF [INAUDIBLE], A LARGE PORTION OF THE SURPLUS FROM DAMAGE FROM LACK OF FILLED POSITIONS.
>> THOSE ARE PIN POSITIONS THOSE AREN'T CONTRACTUAL POSITIONS, SO IT'S NOT JUST THE SALARY PLUS THE BENEFITS PIECE.
YOU DO THAT A COUPLE OF YEARS, IT IS GOING TO BE A PRETTY SIGNIFICANT NUMBER BUT THERE HAS BEEN SOME PRETTY SIGNIFICANT IMPACT I THINK TO THE WAY WE DO BUSINESS.
FOR EXAMPLE, OUR PUBLIC HEALTH AGENCY IS NOT ABLE TO HIRE BECAUSE THE STATE IN WHICH OUR SYSTEM CANNOT GET THE HIRES DONE.
THEY IDENTIFY A PERSON AND THEY CAN'T GET IT DONE.
I'M PICKING ON ONE PARTICULAR AGENCY, BUT WE'VE SEEN THAT ACROSS OUR PARTNER AGENCIES.
WE PARTNER A LOT WITH DHCD WHEN IT COMES TO GRANT FUNDING.
THEY ARE PROFOUNDLY UNDERSTAFFED AND WE'LL TALK ABOUT ALONG THE WAIT TIME TO GET [OVERLAPPING]
>> TO TURN AROUND THE REIMBURSEMENTS.
>> YEAH, TO TURN REIMBURSEMENTS. [OVERLAPPING].RIGHT.
THEN THERE HAS BEEN A HUGE PUSH TOWARDS IF YOU LOOK AT SOME OF THE APPOINTMENTS THAT HAVE COME THROUGH ALREADY, IT'S VERY ENVIRONMENTALLY CONSCIOUS IN A VERY LIBERAL DIRECTION.
[01:15:07]
THAT'S GOING TO PUSH AGAINST US WHEN IT COMES TO WHAT THEY'RE GOING TO MANDATE TO THE COUNTY IN TERMS OF EVERYTHING FROM MASS TRANSIT TO ROAD CONSTRUCTION TO TAX POLICY, LANDFILL.ALL OF THOSE PIECES ARE GOING TO BE AFFECTED BY THAT WE SAW THAT DURING THE O'MALLEY ADMINISTRATION.
IF YOU'RE ASKING ME TO TAKE AN EWG, WHICH STANDS FOR EDUCATED WILD GUESS, THEN THAT'S WHAT I WOULD SAY IT'S GOING TO AFFECT US.
THEY DON'T THINK IT'S GOING TO PHYSICALLY AFFECT US UNTIL YOU'RE THROUGH BECAUSE THAT'S HOW LONG IT TAKES TO GET THERE.
WE ALSO DON'T KNOW WHAT THE EMPHASIS IS GOING TO BE ON THE FUNDING THAT WE RECEIVED THROUGH DHCD.
SEEING WHAT THOSE PRIORITIES ARE, WE ALSO DON'T UNDERSTAND WHAT THE ACT PUSH IS GOING TO BE.
BUT IT WOULD APPEAR AS THOUGH THAT'S GOING TO SHIFT.
THEY'RE STARTING WITH TODAY'S APPOINTMENT.
>> WHAT I SAW WAS A LOT OF PEOPLE LOOKING FOR JOBS DOWN THERE AND WHAT I'VE SEEN SO FAR FROM THE CABINET APPOINTMENTS.
>> I DON'T SEE ANY OF THESE PEOPLE WHO HAVE BEEN APPOINTED WHO ARE CONNECTED, EXCEPT FOR ONE.
THEY WERE CONNECTED TO THE EASTERN SHORE AND PROBABLY COULDN'T FIND THE EASTERN SHORE ON THE MAP, SO IT'S SCARY.
>> ABOUT THE STAFFING POSITIONS, NOT NECESSARILY SECRETARIES, BUT SOME OF THE STAFF AS YOU GO DOWN THE PLAIN, ARE PREVIOUS AND EARLY ADMINISTRATION EMPLOYEES OR THEY HELPED HER CAMPAIGNS? THERE'S A LOT OF REDUNDANCY WHEN IT COMES TO THAT.
>> YOU'RE TALKING ABOUT SHORTLY MOUNTAIN APARTMENT ENVIRONMENT HAS A TREMENDOUS AMOUNT OF AGENCIES THAT HAVE NOT BEEN ABLE TO KEEP UP.
THAT IS ONE OF THE THINGS IN THEIR TRANSITION EFFORTS THAT HAS BEEN SHARED TIME AND AGAIN, VERY CONSISTENT WITH WHAT YOU'RE SAYING.
MDE BEGINS TO FILL THOSE POSITIONS, THEN THEY'LL BE ABLE TO REGULATE TIGHTER AND TOUGHER THAN THEY'VE BEEN DOING.
THEY JUST DIDN'T HAVE THE PEOPLE TO DO IT AND NOT ONLY THAT VACANCY, THEY LOST A LOT OF PEOPLE WHO HAD A LOT OF YEARS OF SERVICE AND A LOT OF EXPERTISE, AND NOT ONLY DIDN'T REPLACE THAT EXPERTISE, THEY DIDN'T REPLACE THE POSITION.
THEY COULDN'T DO THEIR JOBS FULLY, WHEN THEY COULDN'T DO THEIR JOB FULLY, YOU NEED TO TELL CATHERINE FREEMAN GET READY FOR LAW ENFORCEMENT REQUIREMENTS.
I DON'T KNOW IF THAT'LL HAPPEN, BUT IT'S DEFINITELY A SHIFT TO [INAUDIBLE] PROCEED.
>> YEAH. IT'S HARD TO PREDICT WHAT THE FINANCIAL IMPACT OF THAT IT'S GOING TO BE.
THEN WE HAVE TO SAY, IS THE DEBT GOING TO PUSH US INTO A RECESSION OR EVEN A DEPRESSION? AND WHAT IS THAT GOING TO LOOK LIKE? WE'RE LOOKING AT COMMODITIES, FUEL AND FOOD, GRAIN PRODUCTION, WHICH AFFECTS US.
YOU'RE GETTING INTO SOME 60,000 FOOT VIEWS HERE, BUT BRINGING THAT BACK INTO A 10,000 FOOT VIEW, IT'S A LITTLE TRICKY TO PREDICT.
THE COUNTY HAS BEEN WORKING SOME ALTERNATIVE REVENUE STREAMS AND IT LOOKS LIKE MAYBE SOME OF THOSE MAY PLAY OUT IN OUR FAVOR IN THE NEXT FEW YEARS.
THOSE ARE LONG GAMES BUT IT'S NOT GOING TO OFFSET REVENUE LOSS FROM A SIGNIFICANT ECONOMIC DOWNTURN.
THAT'S WHY I SUGGESTED THAT MAYBE IN THE COUNTY'S BEST INTEREST TO STUCK TO RULES HERE MAYBE, SO THAT WE SHOWED OURSELVES THREE YEARS FROM NOW WHEN.
>> WE DON'T HAVE THE ABILITY TO HELP YOU?
>> YEAH. [LAUGHTER] [OVERLAPPING]
>> YOU MAY BE RELYING ON THE STATE.
IT SOUNDS LIKE MAYBE THE STATE WILL PICK UP THAT WORD, PROBABLY GOING TO HAVE MORE FINANCIAL BURDEN PUT ON US, BUT MAYBE FOR THE RECORD, THE STATE IS WHAT PAY OFF THAT DIFFERENCE.
>> THAT WOULD ALLEVIATE A LOT OF BURDEN.
>> THAT'S A BIG NUMBER FOR BINDING TO US.[OVERLAPPING]
>> BUT I THINK THE BOTTOM LINE FOR US IS GOING TO BE CONTINUING HAVING A TAX BASE THAT'S GOING TO REMAIN FOR THIS DIALOGUE FOR A NUMBER OF REASONS.
I MEAN, FOR NUMBER ONE OF THE REASONS IS THAT, FOR GOOD OR BAD, WHEN WE HAVE A COMPANY OR WHEN WE HAVE A BUSINESS THAT WANTS TO COME IN AND DO SOMETHING, IT ALWAYS SEEMS TO GET SHUT DOWN.
WHEN WE HAVE QUESTIONS ABOUT, WHY CAN'T WE ATTRACT BUSINESSES? IT'S BECAUSE WHEN WE HAVE INNOVATIVE BUSINESSES,
[01:20:02]
PROBABLY HAD A LOT AND I'M SORRY IF THAT'S TRUE.WHEN WE TALK ABOUT GROWING OUR TAX BASE, IT'S DIFFICULT BECAUSE WE'RE AN AGRICULTURAL CAMP, AND I WANT IT TO STAY THAT WAY BUT THAT LIMITS YOUR ABILITY TO WORK WITH YOUR TAXPAYERS.
BUT I THINK IT'S GOING TO BE SCARY FOR YOU.
>> WHAT I'VE TOLD A LOT OF PEOPLE I'VE MET WAS, IF YOU LOOK AT OUR PROPERTY TAX RATE, WE'RE IN THE MIDDLE OF THE PARK.
WE WERE FIRMLY RIGHT IN THE MIDDLE OF THE 23 COUNTIES IN MARYLAND BUT WE'RE SURROUNDED BY; THREE LAW TAX, PROPERTY TAX, JURISDICTIONS, AND [INAUDIBLE] DELAWARE.
I REITERATE TO A LOT OF PEOPLE THERE THAT WE SHARE, I THINK, IT'S A 25 MILE OR 35 MILE BORDER WITH DELAWARE.
OUR COMPETITIVENESS WITH OUR NEIGHBORING STATE REALLY HAS A BIG IMPACT ON OUR ABILITY TO ATTRACT INVESTMENT IN THIS COUNTY.
WE DO HAVE A UNIQUE BATTLE THERE.
WE'LL JUST KEEP OUR HEADS DOWN AND KEEP GOING.
>> EVERY UNFUNDED MANDATE THAT COMES DOWN THE ROAD, IT MAKES IT MORE DIFFICULT.
WHEN YOU QUOTE A NUMBER ON WHAT IT COST YOU TO BUILD THE HOUSE IN THIS COUNTY BY THE TIME YOU IMPLEMENT YOUR MANDATORY SPRINKLER SYSTEMS AND THE SEPTIC, THOSE ARE OUT OF OUR CONTROL.
WE'VE DONE THIS BEFORE AND BECOMING NEGATIVE ZERO CABIN FOOTPRINT, YOU KNOW YOU'RE NOT PUTTING ANYTHING INTO THE AIR FOR THAT NEW HOUSE [OVERLAPPING]
>> HAVE A MITIGATION SYSTEM ATTACHED HERE, FRANK SAID.
WELL, THERE'S NO EXHAUST FROM THERE.
>> I DON'T WANT TO I'M JUST [OVERLAPPING] TRYING TO FIGURE OUT THE ANSWERS TO THE QUESTIONS. [LAUGHTER].
>> DANGERS THAT ARE ATTRIBUTED TO THE ALTERNATE ENERGY SYSTEMS BUT THEY ARE THERE.
[OVERLAPPING] THE COST IS RIDICULOUS AND THE INFRASTRUCTURE IS NOT THAT GOOD. WE COULD PROBABLY.
>> [OVERLAPPING] THAT'S THE BIGGEST PIECES, WE COULD SHIFT ALL OF THAT, BUT WE CAN'T SUPPORT ANY OTHER.
>> RIGHT. MAYBE ALL THESE CARS THAT ARE HEADED TO THE OCEAN THAT DON'T KNOW FOR SURE IS ANYWAY, THEY HAVE A LOT OF ELECTRIC CARS WE COULD ADD, MAYBE WE CAN MAKE SOME MONEY OFF CHARGING.
>> THEY'RE GONNA BREAK DOWN, RIGHT? [LAUGHTER]
>> WE CARE ABOUT TELLING THEM BECAUSE THERE ARE DANGERS ATTACHED TO THAT.
I GOT ONCE TOLD THAT IT MAY GO BY SOMEBODY WHO WAS TRYING TO TALK TO ME TO PUTTING CHARGING STATIONS EVERYWHERE. I'M LIKE YEAH WHY? [OVERLAPPING].
>> I'D HAVE TOLD YOU WHAT I TOLD HIM, BUT [LAUGHTER] IT'S GOT ME $100.
>> I APPRECIATE YOUR CONTACTS WITH BANK OR ANOTHER STATE CONTACT WHO ARE NOT HERE BECAUSE OF THE DIALOGUE [INAUDIBLE] THE OTHER SCARY AND THROUGH MY THINKING RIGHT NOW, A LOT OF UNKNOWN,
>> I THINK BEING ABLE TO SHARE IDEAS IS GOOD.
I MEAN, THIS IS ONE OF THE CHAMBER MEETINGS [LAUGHTER]
>> THANK YOU SO MUCH YOU'RE MUCH APPRECIATED.
THE ONLY OTHER THINGS THAT ARE UPCOMING MEETINGS AND EVENTS,
[3. Upcoming Meetings/Events]
WHERE WE TRACK THOSE [INAUDIBLE] WE'LL BE SHARING DUTIES IN A COUPLE OF WEEKS.WITH THAT I'LL ANSWER ANYTHING ELSE ON TO THE MOTION TO ADJOURN?
>> [LAUGHTER]
* This transcript was compiled from uncorrected Closed Captioning.