[00:00:01]
>> WE NEED A VOTE TO CALL THIS MEETING TO ORDER.
[1. Opening Items]
IT IS THE BOARD SET ON TUESDAY, APRIL 15TH, 2025.>> I CAN MAKE A MOTION TO OPEN THE MEETING.
>> ANY OPPOSED? AT THIS TIME, WE'LL STAND FOR THE PLEDGE OF ALLEGIANCE.
>> WE NEED A VOTE FOR THE APPROVAL OF OUR AGENDA THIS MORNING.
>> I MOVE THE MOTION TO APPROVE THE MEETING AGENDA.
>> SO CARRIED. WE'RE GOOD TO OUR CONSENT AGENDA.
[2. Consent Agneda]
>> DR. WILLY FOR THE CONSENT AGENDA THIS MORNING.
>> GOOD MORNING, PRESIDENT RAYMON, MEMBERS OF THE BOARD.
TODAY'S CONSENT AGENDA [INAUDIBLE]
>> WE NEED FOR A VOTE TO ACCEPT CONSENT? NO. WE GO TO DISCUSSION ITEMS.
>> WE NEED A MOTION FOR YOU TO ACCEPT THE CONSENT AGENDA THAT'S PRESENTED.
>> I MOVE THE MOTION TO CONSENT AGENDA [INAUDIBLE]
OUR DISCUSSION ITEM FOR THIS MORNING IS THE FISCAL YEAR '26 BUDGET DEVELOPMENT.
[3.01 FY26 Budget Development]
THIS MORNING, MS. SIGNA AND I WILL BE WALKING THROUGH WHERE WE ARE AS OF TODAY WITH OUR BUDGET DEVELOPMENT.
THE GENERAL ASSEMBLY CLOSED ON MONDAY OF LAST WEEK AND INTERESTINGLY ENOUGH, THEY FULLY FUNDED BLUEPRINT FOR FY '26, WHICH IS GREAT FOR US BUDGET WISE.
AND WE'RE GOING TO WALK THROUGH WHERE WE ARE, ONE, THE REVENUE PICTURE TO GIVE THE BOARD UNDERSTANDING AT LEAST WHERE THE REVENUES APPEAR TO BE COMING FROM GOING INTO FY '26.
WE'LL DO THAT FIRST, AND JOE WILL WALK THROUGH THAT DOCUMENT WITH THE BOARD.
IT SHOULD LOOK FAMILIAR TO A BUDGET DOCUMENT OR TO A REVENUE DOCUMENT THAT WAS SHARED WITH THE BOARD THAT WAS MUCH LARGER, MUCH MORE CONVOLUTED THAT CAME FROM THE STATE DEPARTMENT OF ED.
WE SIMPLIFIED IT FOR JUST CAROLINE COUNTY.
AT THIS POINT, AGAIN, JOE WALK THROUGH THAT.
AFTER THAT, WE'LL WALK THROUGH THE BUDGET SUMMARY OF WHERE WE ARE TODAY WITH HOW WE'RE RECOMMENDING USING THE ADDITIONAL FUNDS THAT WE HAVE AND SOME SAVINGS THAT WE'RE LOOKING AT GOING INTO FY '26.
NEW BOARD MEMBERS IS YOUR FIRST TIME THROUGH THE BUDGET PROCESS.
BETWEEN NOW AND JUNE, WE WILL WORK THROUGH TO REFINE THE BUDGET DOCUMENTS AND THE BUDGET PROCESS.
THERE'LL BE A MUCH LARGER BUDGET DOCUMENT THAT GETS COMPILED, BUT RIGHT NOW WE'RE AT THE SUMMARY PHASE FOR REALLY LOOKING AT HOW WE'RE USING THOSE REVENUE STREAMS TO MAKE ADJUSTMENTS TO KEEP THE SCHOOL SYSTEM FULLY FUNCTIONING GOING INTO NEXT YEAR.
TODAY IS SORT OF THAT FIRST REAL MOVE WITH ACTUAL NUMBERS THAT WE FEEL PRETTY CONFIDENT ABOUT.
WITH THAT, I'LL PASS TO MS. SIGNA TO JUMP THROUGH THE REVENUES AND THEN WE'LL START TALKING ABOUT THE SUMMARY.
>> AS DR. [INAUDIBLE] SAID, THIS DOCUMENT HAS THE FIGURES THAT WE WERE SENT FROM MST BACK IN JANUARY WITH BLUEPRINT BEING FULLY FUNDED [INAUDIBLE] UNTIL WE GET FURTHER FIGURES.
WE DO THINK THERE COULD BE SOME CHANGES IN THESE FIGURES BEFORE THE FIGURES ARE FINALIZED, BUT THESE ARE THE MOST UP TO DATE FIGURES WE CAN GIVEN.
STARTING WITH FOUNDATION, THIS IS AN INCREASE FROM LAST YEAR.
THERE WAS TALK WITH THE BUDGET THAT THE GOVERNS FOR THE DECREASING THE AMOUNT FOR TIME, BUT THAT DID NOT GO THROUGH.
THEN WE HAVE THE BLUEPRINT TRANSITION GRANT, THIS IS FUNDS TO HELP US TRANSITION INTO BLUEPRINT AS A WHOLE.
>> IT'S MONEY TO HELP OFFSET THE SHIFTS THAT THE SCHOOL SYSTEM HAS TO DO.
SORRY, I CONTACT NESS AND GO TO READ THE PAPER.
THIS IS MONEY THAT HELPS OFFSET THE COSTS ASSOCIATED WITH MOVING TOWARDS THE BLUEPRINT GRANT.
THIS IS THE NUMBER THAT WE ACTUALLY BELIEVE WILL BE A LITTLE BIT LOWER THAN WHAT'S HERE.
MS. SIGNA FACTOR THAT INTO HER NUMBERS USED ON THE BUDGET SUMMARY PIECE, BUT THE REVENUE STREAM, THIS IS THE OFFICIAL ONE WE'VE RECEIVED, BUT WE ANTICIPATE THAT'S A LITTLE BIT LOWER FROM THE STATE. IT'S A STEP DOWN.
EVERY YEAR THAT WE'RE MOVING INTO THE BLUEPRINT WORLD, THAT BLUEPRINT TRANSITION GRANT GETS A LITTLE SMALLER FOR EVERY SCHOOL SYSTEM.
[00:05:03]
I BELIEVE IT'S BASEBALL FOR STUDENT COUNT.IT'S TRULY IS A FORMULA FUNDED TRANSITION AMOUNT.
>> THEN GOING DOWN TO CCR, WHICH IS COLLEGE AND CAREER READINESS.
THIS IS FUNDS THAT WE USED FOR DUAL ENROLLMENT AND I BELIEVE INVOLVES THE WORK FORCE INVESTMENT BOARD, AND THAT HAS INCREASED FROM LAST YEAR, QUITE A BIT.
TRANSPORTATION, THAT LINE ITEM HAS GONE UP, HOWEVER, STILL UNDERFUNDED AS A WHOLE, SO WE WITH THIS FACTOR AND SOME OF THE FOUNDATION FUNDS ARE UNTRICED TO BE ABLE TO COVER ALL OF OUR TRANSPORTATION COSTS.
COMPENSATORY EDUCATION HAS INCREASED FROM LAST YEAR.
CONCENTRATION OF POVERTY HAS INCREASED, WE NOW HAVE NORTH CAROLINA AS A CONCENTRATION OF POVERTY SCHOOL FOR NEXT YEAR, BUT THOSE FUNDS ARE RESTRICTED.
WE DON'T INCORPORATE THAT INTO OUR OPERATING BUDGET BECAUSE IT'S MONEY THAT IS DISPERSED TO SCHOOLS, AND THEY GET TO DECIDE HOW THEY ARE GOING TO SPEND IT. WE DON'T FACTOR THAT IN.
MULTILINGUAL LEARNERS HAVE GONE UP FROM LAST YEAR.
SPECIAL EDUCATION HAS GONE UP FROM LAST YEAR.
THAT'S ANOTHER ONE THAT TRANSPORTATION WHERE IT'S GONE UP, BUT WE'LL STILL HAVE TO FACTOR IN SOME OF THE FOUNDATION FUNDS TO COVER OUR TOTAL COSTS FOR SPECIAL EDUCATION.
TRANSITIONAL SUPPLEMENTAL INSTRUCTION FUNDS HAVE GONE DOWN A BIT FROM LAST YEAR.
CAREER LADDER HAS GONE UP, WE HAVE MORE TEACHERS THAT ARE NOW QUALIFIED AS NBC TEACHERS INTO THAT BUCKET, AND THEN THE BLUEPRINT COORDINATOR FUNDS HAVE GONE DOWN OF IT, AND THAT'S JUST FUNDS THAT WE USE TO SUPPLEMENT INCOME OF OUR BLUEPRINT COORDINATOR.
>> A COUPLE OF REVENUE PICTURES JUST TO POINT OUT FOR THE BOARD TO HIGHLIGHT.
THE TRANSPORTATION PIECE AS MS. SIGNA SHARED.
THIS HAS BEEN A TALKING POINT FOR A COUPLE OF YEARS AT THE STATE LEVEL.
OUR TRANSPORTATION IS NOT JUST ACROSS THE STATE.
BY THE WAY, THE FORMULA IS WRITTEN.
MOST SCHOOL SYSTEMS, FOR US, IT'S ALMOST, I THINK CLOSE TO A MILLION DOLLARS.
THE TRANSPORTATION IS UNDERFUNDED BASED ON THE FORMULA.
HASN'T KEPT UP WITH THE PRICE OF WE'RE NOT EVEN TALKING ABOUT WHERE WE ARE ECONOMICALLY NOW, EVEN BEFORE THE SESSION STARTED, THAT'S ABOUT HOW MUCH IT WAS OFF.
SPECIAL ED IS PROBABLY ABOUT THE SAME.
SPECIAL ED, THE COMBINATION OF A STATE FORMULA AND THE FEDERAL FORMULA.
THEY'VE NOT KEPT PACE WITH COSTS GOING UP.
THERE IS A PART IN THE BILL THAT WAS PASSED FOR EDUCATION, THE BIG BILL THAT FULLY FUNDED BLUEPRINT, BUT THEY PUT LANGUAGE IN THERE FOR SPECIAL EDUCATION TO REVISIT THE FUNDING FORMULA FOR SPECIAL ED.
ONE OF THE MODELS THAT'S BEEN FLOATED FOR THEM TO CONSIDER LOOKING AT, AND I'M HOPING THAT THEY DO IS THE WAY THAT DELAWARE FUNDS SPECIAL EDUCATION.
DELAWARE FUNDS SPECIAL EDUCATION BASED IT'S A PEERED MODEL BASED ON THE INTENSITY OF NEEDS OF KIDS.
REGARDLESS OF THE LEVEL OF INTENSITY, IT'S A FLAT DOLLAR AMOUNT PER KID.
THAT'S PROBABLY WHERE THE COSTS ARE OFF BECAUSE IT DOESN'T KEEP UP WITH THE HIGHER INTENSE DEED.
THOSE TWO HOPEFULLY WILL ADJUST IN THE FUTURE IN '27 AND '28, BUT LOCALLY, THOSE TWO ARE PROBABLY THE MOST SIGNIFICANTLY UNDERFUNDED FOR EVERY SCHOOL SYSTEM IN THE STATE BASED ON THE FORMULA.
THEN WE USE THE OTHER PARTS OF THE BUDGET TO FILL THOSE HOLES. THEY'VE HARD CODED IN.
THE TRANSPORTATION ONE IS A NIGHTMARE TO FIGURE OUT.
IT INCLUDES, I BELIEVE, CPI, AND IT INVOLVES A LOT.
BUT AT SOME POINT THEY'RE GOING TO HAVE TO RELOOK AT THAT AS WELL.
THE ONE I HIGHLIGHT AS WELL, COMPENSATORY ED, WE'RE SITTING AT ABOUT 69% OF OUR KIDS QUALIFY FOR FREE NERDS MEALS.
WE ARE ONE OF THE HIGHEST IN THE STATE.
WE'RE NOT THE HIGHEST, BUT IT'S NOT SLOWING DOWN IN CAROLINE COUNTY.
COMP HAS PROBABLY BEEN OUR FASTEST GROWING POPULATION IN THE LAST COUPLE OF YEARS.
MOVING FORWARD SO THAT'S WHY THAT NUMBER IS WHERE IT IS NOW, 29 MILLION, WITH 69% OF OUR KIDS QUALIFIED.
>> WITH NORTH CAROLINE BEING ADDED, DO ALL OF OUR SCHOOLS QUALIFY FOR THE CONCENTRATION OF POVERTY GRIT OR?
>> CAROLINE WAS THE LAST ONE THAT DID NOT QUALIFY THIS YEAR.
IN THE PAST, I THINK WE STARTED WITH FEDERALSBURG AND THEN GREENSBORO AND THEN COLONEL MIDDLE GOT ADDED.
THEN THIS YEAR THE REST OF THE SCHOOLS OTHER THAN NORTH CAROLINA BECAME CONCENTRATION OF POVERTY SCHOOLS.
NEXT YEAR, IT WILL BE ALL OF THEM.
BUT THE WAY THE CONCENTRATION OF POVERTY FUNDING WORKS IS IT'S SPLIT UP INTO TWO GRANTS.
THERE'S THE PERSONNEL FUNDS AND THEN THE PER PUPIL FUNDS.
THE FIRST YEAR THAT A SCHOOL IS A CONCENTRATION POVERTY SCHOOL, THEY ONLY GET THE PERSONNEL FUNDS.
THAT'S THE SAME AMOUNT FOR EACH SCHOOL.
[00:10:01]
THEN THE PER PUPIL FUNDS ARE BASED ON HOW MANY KIDS IN THAT SCHOOL ARE [INAUDIBLE]? NORTH CAROLINA WILL ONLY GET THE FIRST PORTION NEXT YEAR, WHILE THE REST OF THE SCHOOLS THAT BECAME CONCENTRATION POVERTY SCHOOLS, THIS YEAR, WE'LL GET THAT SECOND GRANT NEXT YEAR, BUT IT WILL DEPEND ON THEIR SCHOOL POPULATION, HOW MUCH THEY GET.>> THE CONCENTRATION OF POVERTY FUNDING IS AN INTERESTING SETUP.
YOU SEE THOSE FUNDS ARE WORKING TOWARDS BECOMING A COMMUNITY SCHOOL.
THE FIRST YEAR IS ALL THE EFFORTS AND THE NEEDS ASSESSMENT AND CREATING THAT SCHOOL LEVEL PLAN.
THEN MOVING FORWARD AFTER THAT, THE WAY THE FORMULAS WORK FOR CONCENTRATION OF POVERTY.
SCHOOLS WITH HIGH POVERTY, WHICH FOR US IS FEDERALSBURG AND GREENSBORO.
IT HAS AN ESCALATOR WHERE THAT PER PUPIL FUNDING DEFINITELY PICKS UP.
THAT A GOOD CLIP. OUR OTHER SCHOOLS ARE NOT IN THE HIGHEST LEVEL OF POVERTY.
THEY DON'T HAVE THAT ESCALATOR.
IT DOESN'T PICK UP AS RAPIDLY AS FEDERALSBURG AND GREENSBORO, BOTH OF THEM SITTING OVER 70% FOR YOURS MEALS.
>> THAT'S WHAT I WANTED TO SHARE MS. SIGNA.
THE BILL THAT PASSED 504, THE BIG EDUCATION BILL DID ALLOW THEY DID MAKE THE NECESSARY AMENDMENT FOR SCHOOL SYSTEMS WITH LESS THAN 10 SCHOOLS.
IF YOU HAD 35% OF YOUR SCHOOLS COP ELIGIBLE, MONEY CAN BE USED AT THE DISTRICT LEVEL TO COVER SOME EXPENSES ASSOCIATED WITH RUNNING COP SCHOOLS, WHICH IS HUGE FOR US.
WE WERE THE EXAMPLE THAT WAS USED ON THE FLOOR OF HAVING 100% BECAUSE WE HAD 100% OF OUR SCHOOLS QUALIFIED BUT WHERE THEY DREW THE AMENDMENT, IT LEFT US OUT.
>>THEY CORRECTED IT. THEY DID. THAT WAS EXCITING.
TO BE HONEST, PROBABLY THE DISTRICT THAT HELPED US THE MOST BALTIMORE CITY.
BALTIMORE CITY LOBBIED REALLY HARD WITH THEIR LEGISLATIVE TEAM TO HELP PEOPLE UNDERSTAND THAT WHILE CAROLINE IS TINY, THEY MISSED THE MARK ON THAT IF THEY WERE GOING TO SAY, YOU HAD TO HAVE AT LEAST TEN SCHOOLS.
I HAD THANKED BALTIMORE FOR THAT.
THAT HELPED. ANY QUESTIONS ON THE REVENUE PIECE? WITH THE REVENUE WE'RE UP, OVERALL, WHEN YOU TAKE UNRESTRICTED OUT, WE'RE UP LIKE 6.6 MILLION OVER LAST YEAR, 6.7 SOMEWHERE IN THAT BALLPARK, WHICH IS GOOD.
WE ARE ONE OF THE DISTRICTS THAT HAS A GOOD INCREASE.
SOME OF THE THINGS THAT HELP US FOR THAT INCREASE IS STUDENT DRIVEN FORMULAS.
OUR ENROLLMENT HAS BEEN TICKING UP STILL.
SPECIAL POPULATIONS OR AT PROMISED POPULATIONS, WHICHEVER TERM YOU WANT TO USE.
OUR POVERTY IS IN OUR ML INCREASE AND OUR SPECIAL ED IS INCREASED A LITTLE BIT.
WHEN ALL OF THOSE THINGS INCREASE, IT GENERATES HIGHER REVENUE.
DISTRICTS WHO ARE FLAT ON ENROLLMENT ARE TRENDING DOWNWARDS.
THEY ARE NOT SEEING THE FORMULA OF ANY INCREASE AS WE ARE.
ACTUALLY, I'LL WAIT UNTIL THE NEXT SLIDE WITH THAT BECAUSE THERE IS AN ASK OF THE COUNTY COMMISSIONERS BECAUSE IF BLUEPRINT BEING FULLY FUNDED DOES PUT MORE ON THEIR PLATE AT A TIME WHEN THERE'S A LOT OF PUSH BACK ON IT.
>> THIS IS OUR DRAFT BUDGET SUMMARY, WHERE WE ARE RIGHT NOW.
THINGS CAN STILL CHANGE BEFORE WE BRING THE FINAL BUDGET TO THE BOARD.
STARTING AT THE TOP, I BROKE DOWN THE REVENUES INTO COUNTY AND STATE SHARES.
THIS IS BASED ON THE FORMULA CALCULATIONS, BUT IT DOES FACTOR IN THE CHANGE THAT I BELIEVE WILL HAPPEN WHEN WE GET OUR FINAL NUMBERS SO THAT I WASN'T OVER ESTIMATING OUR REVENUES.
THERE'S ALSO THE INCREASE IN OUR OTHER REVENUE, WHICH IS RELATED TO HIGHER INTEREST RATE WE'VE BEEN RECEIVING OVER THE PAST FEW YEARS.
I THOUGHT IT WAS REASONABLE TO INCREASE THAT LINE ITEM TO INCORPORATE SOME OF THESE FUNDS SO THAT WE CAN USE THEM.
WE'VE BEEN EARNING HIGHER INTEREST RATES THAN BUDGETED, AND A LOT OF THAT HAS JUST GONE TO FUND BALANCE BECAUSE WE'RE NOT INCORPORATING THAT INTO OUR OPERATING BUDGET.
DID YOU WANT TO SPEAK TO THE PART ABOUT THE COUNTY?
>> SURE. THANKS. WITH THE TOP, SO CAROLINE COUNTY HAS FOR THE LAST COUPLE OF YEARS MOVED INTO LOCAL SHARE FROM MAINTENANCE OF EFFORT, WHICH IS BASICALLY PARK COUNTIES IN THE PIECE OF THE BLUEPRINT FORMULA FUNDING, WHERE BEFORE THEY WOULD HAVE BEEN UNDER THE MAINTENANCE OF EFFORT LAWS, BUT THEY'RE AT THE LOCAL SHARE PIECE NOW,
[00:15:02]
WHICH MEANS THEIR SHARE IS HIGHER.THE COUNTY COMMISSIONERS GAVE US AN INCREASE LAST YEAR, I BELIEVE, OF CLOSE TO 1.8 MILLION, WHICH IS A BIG LIFT PERCENTAGE WISE FOR THAT REALLY WAS.
THEIR LIFT AGAIN THIS YEAR, BASED ON THE FORMULA.
I DO APPRECIATE THEIR UNDERSTANDING OF THE FORMULA BEING WHERE THIS IS GOING AND IT'S NOT US GOING IN AND ASKING FOR MORE OF THE FORMULA DRIVING IT, THEY'RE DUE FOR ANOTHER 1.8 AGAIN THIS YEAR.
PROJECTIONS THEY'VE SEEN FOR FY 27 BASED ON DEPARTMENT OF LEGISLATIVE SERVICES.
THEY'RE PROBABLY LOOKING AT ANOTHER INCREASE RIGHT NOW, MAYBE 1.1 THE FOLLOWING YEAR.
THOSE ARE LIFTS THAT OUR COUNTY IS NOT USED TO SEEING. THEY'RE JUST NOT.
I WANT TO DEFINITELY JUST POINT OUT, AGAIN, WE'VE GOT A GREAT RELATIONSHIP WITH THE COUNTY COMMISSIONERS.
THEY'VE BEEN VERY UNDERSTANDING. THEY'VE BEEN WORKING THROUGH THIS.
THESE ARE HIGH PERCENTAGE INCREASES FOR THEM.
THAT'S NOT LIKE WHAT THEY'RE USED TO.
IT'S NOT LIKE WHAT WE'RE USED TO.
TYPICAL INCREASES WOULD HAVE BEEN IN A HUNDREDS OF THOUSANDS.
BUT THE LOCAL SHARES DEFINITELY HAS BEEN INCREASING AT A PRETTY RAPID CLIP.
AGAIN, WE'RE HAVING GREAT COMMUNICATION OVER IT AND THEY FEEL THEY ARE OKAY IN 26 TO GET THERE.
MY CONCERN NOT JUST FROM THE SCHOOL SYSTEM SEAT, BUT ALL OF US PEOPLE WHO LIVE IN THE COUNTY AND PAY TAXES IN THE COUNTY MY CONCERN IS THE OUTERS.
BECAUSE THE CONTINUED INCREASE AT THIS RATE IS GOING TO BE VERY DIFFICULT. IT JUST IS.
IN A DISTRICT WHERE OUR FREE MEALS POPULATION IS INCREASING, WHICH MEANS YOUR INCOME IS PROBABLY GOING DOWN, YOUR PROPERTY VALUES MIGHT BE STAGNANT OR GOING DOWN.
IT'S HARD TO KEEP PACE WITH THAT.
BUT I DID JUST WANT TO FLAG THAT FOR EVERYBODY TO SEE THAT IT'S A BIG ASK FOR ACCOUNTING COMMISSIONERS PERCENTAGE WISE.
THEY'LL BE GIVING OVER 20 MILLION OF OUR BUDGET NEXT YEAR OF 104 MILLION BUDGET.
THEY HAD BEEN AROUND 15-16% OF OUR BUDGET.
THEY'RE GOING TO BE CLOSE TO 20% NEXT YEAR.
THOSE ARE JUST BIG PERCENTAGE CHANGES FOR THEM.
UNRESTRICTED STATE AID, WHICH JILL POINTED OUT THERE IS AN INCREASE OF A LITTLE OVER THREE MILLION DOLLARS.
IT'S NOT THE TOTAL STATE INCREASE, BUT THAT'S THE UNRESTRICTED PIECE BECAUSE WE PULLED CONCENTRATION OF POVERTY OUT OF IT, SINCE WE DON'T HAVE THAT FLEXIBILITY AT THE DISTRICT LEVEL AND SOME THINGS.
ANY QUESTIONS AT ALL ON THE REVENUE PICTURE?
>> I HEARD YOU SAY IT BEFORE, BUT WHY DID THE FORMULA SWITCH? AS BEST I CAN REMEMBER.
>> THEY ADDED AND I'LL TRY TO HIT THIS AS BEST I CAN.
[LAUGHTER]. WHEN THEY DEVELOPED THE BLUEPRINT TO MOVE INTO THE NEW FORMULAS FOR FUNDING, THE STATE ALLOWED COUNTIES TO TRANSITION INTO BASED OFF OF THE AMOUNT OF MONEY THEY WERE GIVING FOR EDUCATION AS A PERCENTAGE VERSUS WHERE BLUEPRINT WILL TAKE THEM.
INSTEAD OF DOING IT ALL AT ONCE, CLICK THE LIGHT SWITCH, THEY STARTED WHERE EVERYBODY WAS, AND AS THE AMOUNTS CALLED UP, ONCE LOCAL SHARE CROSSED THE THRESHOLD OF WHERE YOU WERE, THEN YOU BECAME A LOCAL SHARE.
MOST DISTRICTS WHO WERE MAINTENANCE OF EFFORT DISTRICTS, AND MOST DISTRICTS THAT WERE FUNDED BASED ON THE REQUIRED FORMULA, ARE THE ONES THAT ARE BEING MOVED TO LOCAL SHARE FIRST.
THE DISTRICTS WHO HISTORICALLY FUND OVER MAINTENANCE OF EFFORT WILL PROBABLY BE SOME OF THE LAST ONES TO MOVE INTO LOCAL SHARE.
A PREMISE THAT THE BLUEPRINT THAT BUILT INTO THE FUNDING PIECE OF IT WAS COUNTIES SHOULD DO MORE.
THEIR WAY IS I WOULD ASSUME THE PEOPLE WHO ORIGINALLY WROTE IT SEE THE PEOPLE WHO WERE GIVING JUST ENOUGH, ARE BEING FORCED TO GIVE MORE NOW AND THE ONES WHO ARE ALWAYS GIVEN MORE.
IT'LL TAKE A LITTLE WHILE BEFORE THEY GET FORCED TO GIVE MORE.
BUT NO, GREAT QUESTION, BUT YEAH THAT'S WHERE THAT COMES FROM.
AS A PIECE, AND I'LL HANDLE THE NEXT PIECE WITH REDUCTIONS AND THEN MS. STEGNANT WILL DO THE COST OF DOING BUSINESS.
JUST A STRUCTURAL PIECE BECAUSE FOR TWO OF YOU IT'S THE FIRST TIME THROUGH THE PROCESS FOR THE BUDGET SUMMARY DOCUMENT.
CAROLINE COUNTY'S BEEN USING THIS STRUCTURE OF A BUDGET SUMMARY TO WALK THROUGH THE THINKING IN THE PROCESS.
WE'RE STILL USING THAT MOVING FORWARD.
THE FIRST, WE ALWAYS START WITH WHERE OUR REVENUE PICTURE IS BECAUSE IT DRIVES EVERYTHING.
PART 2 IS WHERE WE ARE TRYING TO THINK ABOUT WHERE WE CAN USE OUR MONEY WISELY AND REDUCE SOME THINGS THAT ARE IN THE BUDGET.
WHETHER WE'RE SEEING WHERE WE'RE UNDERSPENDING FUNDS, OR IF THERE'S THINGS THAT WE CAN ADJUST AND TAKE OUT OF THE OPERATING BUDGET BECAUSE WE HAVE OTHER WAYS TO FUND THEM OR TO MAKE USE OF OUR TIME.
PART 3 IS JUST THINGS THAT WE HAVE TO COVER.
THE COST TO DOING BUSINESS THAT WE'VE GOT OF BUILD IN.
THEN PART 4 IS IF WE'RE LOOKING TO ADD ANYTHING NEW TO THE OPERATING BUDGET,
[00:20:02]
IT FALLS UNDER PART 4 IS THE STRUCTURE.LOOKING AT REDUCTIONS, OUR FIRST REDUCTION IS SALARY LAPS, AND IT'S NOT REALLY A REDUCTION.
IT'S COMING CLOSER TO BUDGETING TO ACTUAL.
AS AN OPERATING BUDGET ARE INSTRUCTIONAL SALARIES, WE DON'T RIGHT SIZE. WE TYPICALLY DO NOT.
WE KEEP THEM WHERE THEY ARE AND WHEN SOMEONE LEAVES WHO'S HIGHER ON THE SALARY SCALE, WE DON'T TRUE UP THE BUDGET IF WE HIRE SOMEBODY LOWER.
WE BUDGET TO AN AVERAGE SALARY WHEN WE ADD POSITIONS OR NOT, AND WE ADJUST AS WE NEED.
BECAUSE WE DON'T BUDGET THE ACTUAL EVERY NOW AND AGAIN.
AFTER YOU'VE GONE SEVERAL YEARS, YOUR SALARY LAPSE GROWS TYPICALLY.
OUR SALARY LAPS HAS GROWN, AND IT'S BEEN ONE OF THE BIGGEST CONTRIBUTING PIECES TO OUR FUND BALANCE.
IT'S ALSO BEEN ONE OF THE BIGGEST CONTRIBUTORS TO ALLOW US TO DO SOME RESORTED STEPS WITH STAFF.
WE ARE RECOMMENDING BUDGETING ABOUT A HALF MILLION OF OUR INSTRUCTIONAL SALARY LAPS INTO THE OPERATING BUDGET TO MOVE IT BACK IN TO COVER ADDITIONAL COSTS.
AGAIN, WE TYPICALLY DON'T DO THAT, BUT WHERE WE ARE, WE WANT TO.
WE'VE HAD A COMMITMENT AND THE BOARD HAS TO COVER COSTS FOR SALARIES AND ENHANCEMENTS TO OUR NEGOTIATING AGREEMENT IN PARTICULAR SUPPORT STAFF.
THAT HELPS US KIND OF TRUE UP AND BALANCE THE BUDGET.
THE SECOND PART OF A REDUCTION, WE HAVE TWO BUSES, I BELIEVE IT'S TWO.
>> TWO LEASES ARE COMING TO AN END FOR BUSES.
ONCE WE GET ALL OF OUR DOCUMENTS TOGETHER, WE ARE PLANNING TO EITHER USE END OF YEAR MONEY FOR THE TWO REPLACEMENT BUSES, OR PERHAPS FUND BALANCE, IF NEED BE TO COVER THAT DIFFERENCE.
THAT WOULD COME TO THE BOARD PROBABLY IN MAY.
FOR THOSE PURCHASES, IT'S THE PIECE IF WE HAVE THE FUNDS TO PAY FOR THEM OUTRIGHT.
IT'S BETTER OFF INSTEAD OF US PULLING THAT OUT WITH INTEREST OVER TEN YEARS OR EIGHT YEARS, HOWEVER LONG WE FINANCE FOR, AND IT SAVES US ROOM IN THE OPERATING BUDGET FOR THOSE NON RECURRING PAYMENTS.
THAT'S A RECOMMENDATION THAT WE WOULD BE BRINGING TO THE BOARD FOR THOSE TWO BUSES THAT TRANSPORTATION NEEDS.
THEN THE ITEM NUMBER 6, HIGH SCHOOL CREDIT RECOVERY EVENING SCHOOL.
WE'VE BEEN IN CONVERSATION WITH THE HIGH SCHOOL PRINCIPALS.
THEY VISITED A SCHOOL SYSTEM ON SHORE THAT HAS WORKED OUT A SCHEDULED WAY TO BE ABLE TO EMBED CREDIT RECOVERY INTO THEIR SCHOOL DAY.
BOTH HIGH SCHOOLS BELIEVE THEY HAVE ROOM IN THEIR SCHEDULE.
ACTUALLY, BOTH HIGH SCHOOLS KNOW THEY HAVE ROOM IN THEIR SCHEDULE.
WE'RE AT THAT PART OF THE GAME. THEY HAVE THE STAFFING TO BE ABLE TO EMBED.
CREDIT RECOVERY HAS AN OPTION DURING THE DAY.
IF THEY EMBED IT DURING THE DAY, WE'RE NOT HAVING TO PAY TRANSPORTATION TO CALL THE KIDS DURING THE SCHOOL YEAR AND THEN WE'RE NOT PAYING AFTER SCHOOL EXTRA DUTY.
FOR THAT, IT'S ABOUT A CALL SAVINGS OF $80,000.
AT THIS POINT GOING INTO '26, I'M NOT RECOMMENDING THAT WE DO AWAY WITH SUMMER CREDIT RECOVERY JUST YET.
I WANT TO SEE HOW THIS GOES DURING THE SCHOOL DAY.
BUT IF WE ARE ABLE TO MEET THE NEEDS DURING THE SCHOOL DAY FOR KIDS WHO ARE IN CREDIT RECOVERY AND PROVIDE SUPPORT THERE, THAT COULD BE A RECOMMENDATION INTO THE FY27 BUDGET IF WE FIND WE DON'T NEED TO CARRY THOSE COSTS.
SUMMER CREDIT RECOVERY COSTS US ABOUT 70, 80,000 AS WELL.
THIS SAVES US ABOUT HALF OF THE COSTS THAT GOES INTO THAT.
AGAIN, BOTH HIGH SCHOOL PRINCIPALS BELIEVE THEY CAN SUPPORT ALL THE STUDENTS WHO WOULD NEED CREDIT RECOVERY BY EMBEDDING IT DURING THE DAY.
THOSE ARE THE THREE REDUCTIONS THAT WE'RE LOOKING AT BUDGET WISE AS A WAY TO FIND SOME ADDITIONAL FUNDS.
ANY QUESTIONS ON ANY OF THOSE?
>> JUST A QUICK ONE. DO WE DO A MIDDLE SCHOOL?
>> WE DO NOT DO A MIDDLE SCHOOL CREDIT RECOVERY.
WE'VE HAD PROGRAMMING THAT'S DONE WITH PARTNERSHIP THROUGH RECREATION AND PARKS OR MIDDLE SCHOOL PROGRAM THROUGH MIDSHORE REGIONAL COUNCIL.
THE SUMMER CAREER ENRICHMENT PROGRAM.
THE COLONEL HOSTED IT LAST YEAR. THIS YEAR IT WILL BE IN PAULBITT.
WE HAVE OTHER PARTNERSHIPS THAT WE COVER, BUT THEY'RE NOT ONES THAT WE DO OURSELVES.
AS THE COMMUNITY SCHOOLS ROLL FORWARD, THOSE ARE THINGS THAT THE SCHOOL CAN LOOK AT THROUGH THEIR COP FUNDS IF THEY WANT TO DO SOME PROGRAMMING IN THOSE OPTIONS GOING FORWARD.
THE COP FUNDS, IT'S A GREAT AVENUE FOR ANYBODY WHO WANTS TO DO THIS ENRICHMENT THINGS AS WELL.
ANY OTHER QUESTIONS ON THE REDUCTIONS?
>> GOING DOWN TO PART 3, COST OF DOING BUSINESS.
A LOT OF THESE ITEMS COME UP EVERY YEAR, BUT WE HAVE COST INCREASES, SO WE HAVE TO ADD MONEY TO THAT BUDGET.
[00:25:04]
FIRST ONE, NEGOTIATED AGREEMENTS.THE SUPPORT AGREEMENT WE BROUGHT TO THE BOARD LAST MONTH.
THAT'S THE ONLY ONE THAT WE HAVE FINALIZED.
THIS NUMBER IS A ROUGH ESTIMATE, BUT WE BELIEVE IT TO BE PRETTY ACCURATE.
BUT STILL IN NEGOTIATIONS WITH THE TWO OTHER GROUPS SO WE CANNOT SAY FOR SURE YET.
THE RATE INCREASE IS 9.8% THIS YEAR.
WE JUST GOT THE FIGURES LAST WEEK FROM BOLTON.
>> I KNOW WE WERE HOPING IT WOULD BE UP TO ABOUT EIGHT AND 9.8.
>> THAT'S A HEFTY INCREASE THIS YEAR FOR OUR HEALTH INSURANCE COSTS.
THAT'S GOING TO ADD ABOUT 1.4 MILLION DOLLAR TO THAT LINE ITEM.
ELECTRICITY COSTS ARE GETTING HIGHER WITH INFLATION AND EVERYTHING SO WE HAVE TO INCREASE THAT LINE ITEM, ABOUT $300,000.
MABE INSURANCE PROPERTY LIABILITY AND CASUALTY INSURANCE.
WE GOT THE FIGURES EARLIER THIS YEAR, AND IT'S GOING TO BE GOING UP ABOUT $24,500.
THEN OUR STUDENT SERVICES COST INCREASES, WE BELIEVED TO BE ABOUT $8,300, JUST FOR HIGHER PRICES OF CONTRACTED SERVICES AND THE COST THAT IT TAKES TO DO A HOME HOSPITAL.
THEN THE MARYLAND STATE RETIREMENT SYSTEM ADMIN FEE IS GOING UP ABOUT $15,000 FOR US NEXT YEAR, AND WE'RE REQUIRED TO PAY THAT AS PART OF THE MARYLAND STATE RETIREMENT SYSTEM.
OVERALL, THAT WOULD BRING US TO ABOUT 4.8 MILLION DOLLAR, ROUGHLY $5 MILLION INCREASE IN REVENUES.
>> DOES ANYBODY HAVE ANY QUESTIONS.
>> ON OUR ELECTRICITY, IT'S INTERESTING.
I MIGHT BE FOR YOU GUYS AS WELL.
WE PARTICIPATE WITH THE EASTERN SHORE MARYLAND AND EDUCATIONAL CONSORTIUM.
MR. MENGEL IS OUR PERSON WHO SERVES ON THAT FOR THE SCHOOL SYSTEM.
IN ESSENCE, WE BUY OUR ENERGY INTO THE FUTURE WHICH LARGELY ADJUSTS FOR THE MARKET FLUCTUATIONS THAT WE CAN SEE.
IT'S THE INTO THE FUTURE RATES ARE WHAT'S LEADING THEM TO TELL US WE NEED TO INCREASE IT BY $300,000 BY US BEING ABLE TO BUY IN THE FUTURE AND FOR SCHOOL SYSTEMS. THERE'S COUNTY GOVERNMENTS WHO ARE PART OF IT IN SOME TOWNS, I BELIEVE, THAT ARE ALL PART OF THE ENERGY TRUST.
IT DOES HELP FLUCTUATE SO WE DON'T HAVE THOSE HIGH SPIKES.
CONSIDERING THE ENERGY DEBATE THAT JUST HAPPENED IN ANNAPOLIS AND WHAT MAY HAPPEN WITH BILLS, THIS DIMINISHES SOME OF THAT FLUCTUATION THAT WE AS HOMEOWNERS SEE AND FEEL.
WE HEARD YESTERDAY FROM THE ELECTED OFFICIALS AT THE CHAMBER OF BREAKFAST, THAT THEY ARE ANTICIPATING THAT THERE WILL BE A ELECTRICITY RATE INCREASE IN JULY I THINK IS WHEN THEY'RE NEXT MEETING.
AS HOMEOWNERS, I THINK YOU BY IN ROOM WAS NOT HAPPY TO HEAR THAT. I DON'T THINK THEY WERE.
BUT AS A SCHOOL SYSTEM, BUYING INTO THE FUTURE INSULATES US FROM HAVING TO MAKE THOSE QUICK ADJUSTMENTS WHEN THESE THINGS TAKE PLACE THAT SPREADS IT OUT.
WE, AS ESMEC, HIRES A CONSULTANT WHO UNDERSTANDS ALL OF THE WHOLE MARKET COMMODITIES PIECE AND HOW ALL THAT WORKS.
>> FROM THE NEGOTIATED AGREEMENTS, WHAT ARE THOSE DOLLARS? WHAT ARE THEY ACTUALLY PAYING FOR? WHAT PART OF THE NEGOTIATED AGREEMENT ARE THEY ACTUALLY PAYING FOR?
>> AS JILL SAID, OUT OF OUR THREE AGREEMENTS, WE KNOW WE'VE BROUGHT ONE TO YOU GUYS.
WE KNOW THAT THE SUPPORT AGREEMENT HAD A PRICE TAG OF JUST UNDER 2.5 MILLION.
THAT WAS THAT WAS SALARY, THAT WAS HEALTH INSURANCE, SOME AD-DONS FOR CREDENTIALS, AND THINGS LIKE THAT.
>> INCREASED CALENDARS [OVERLAPPING].
>> FOR TEACHERS AND FOR ANS, THAT REALLY DOES TAKE INTO ACCOUNT A PLACEHOLDER. WE'RE NOT DONE.
I KNOW WE'VE TALKED ABOUT NEGOTIATION STRATEGY ENCLOSED, BUT IN GOOD FAITH NEGOTIATIONS, WE JUST PUT A PLACEHOLDER THERE AND WAIT TILL WE'RE DONE THOUGH ANSWER.
>> IT'S THE SUM OF THE ADJUSTMENTS.
>> IT'S THE SUM OF THE ADJUSTMENT.
[00:30:03]
>> ANY OTHER QUESTIONS ON CALLS TO DOING BUSINESS? STRUCTURALLY, IT'S A CHANGE FOR THE SCHOOL SYSTEM WITH THE BUDGET PRESENTATION, AND I APPRECIATE IT FROM THE BOARD AS WELL.
THAT IS, THE NEGOTIATED AGREEMENTS ARE UNDER THE COST OF DOING BUSINESS SECTION NOW INSTEAD OF ADDITIONS.
THAT WAS INTENTIONAL TO REFLECT THE EFFORTS THAT BOARD HAS PUT FORTH NEGOTIATION TEAM HAS PUT FORTH TO HONOR INCREMENTS STEPS, IF YOU WILL, IN THAT PROCESS.
THAT'S WHY IT'S MOVED UP THE COST OF DOING BUSINESS.
START WITH ASSUMING, WE'RE GOING TO BE ABLE TO DO THE THINGS FOR EMPLOYEES THAT WE SAID WE WERE GOING TO DO.
UNDER PROPOSED ADDITIONS, THERE'S NOT AS MANY THIS YEAR.
PART OF IT IS WE'VE BEEN SPENDING A LOT OF TIME LOOKING AT OUR OPERATING BUDGET AND EXPENSES.
YOU'VE HEARD INSTRUCTION TALK ABOUT THE LAST COUPLE OF YEARS THAT THEY'VE BEEN WALKING THROUGH AND LOOKING AT ALL OF OUR INTERVENTIONS THAT ARE BEING USED AND TRYING TO BE MORE SPECIFIC ABOUT ANY CONTRACTED SERVICES BEING UTILIZED FOR STUDENTS AND READING AND MATHEMATICS, BY OUR WEEDING DOWN OF THAT LIST AND BEING MORE TARGETED.
WE'RE NOT LIKELY TO SEE THE INCREASES IN CONTRACTED SERVICES THAT WE ASSUMED.
WE'RE REALIZING SOME WAYS TO LIVE WITHIN THE BUDGETED AMOUNTS.
THAT'S WHY YOU'RE NOT SEEING A LOT OF CONTRACTED SERVICES COME OR INCREASES IN THOSE AREAS BECAUSE WE'RE LIVING WITHIN.
YOU'RE NOT SEEING INCREASES IN STAFFING AS WELL COMING IN.
THERE IS ONE ADJUSTMENT TO A STAFF POSITION COMING.
BUT WHAT WE'RE ALSO LOOKING AT IS, HOW DO WE REDEPLOY STAFFING BASED OFF THE NEEDS OF THE SCHOOL SYSTEM.
WE'VE GOT SOME SCHOOLS THAT ARE IN A PERIOD OF LOOKING AT A DECREASE IN ENROLLMENTS FOR A PERIOD OF TIME.
WE HAVE SCHOOLS THAT ARE LOOKING AT INCREASES IN ENROLLMENT FOR A PERIOD OF TIME.
WE'RE LOOKING AT RIGHT SIZING AND MOVING STAFFING FROM ONE BUILDING TO ANOTHER WHERE APPROPRIATE, AND WE'RE TRYING TO HANDLE THAT THROUGH ATTRITION.
WHEN POSITIONS COME OPEN, LOOKING AT WHERE CAN WE POTENTIALLY MOVE THOSE POSITIONS.
WE'RE NOT RECOMMENDING ANY ADDITIONAL STAFFING POSITIONS.
FRANKLY, A BIG PIECE, WE'RE ALSO LOOKING THROUGH AND MS. SIGNOT AND I HAVE BEEN PARTICIPATING IN OUR WORK WITH WESTED AS THE BOARD IS AWARE.
WESTED IS THE CONSULTANT HIRED BY THE AIB TO HELP US WORK ON GETTING OUR PILLAR FIVE FUNDING SET, SO THE MONEY FOLLOWING THE STUDENT.
WE HAVE ANOTHER CALL WITH WESTED ON THURSDAY.
THEY'VE BEEN HARD AT IT SINCE THE FALL TRYING TO HELP US WORK TO GET OUR BUDGET ALIGNED FOR FY26 WITH THE NEW FUNDING RULES AND HELP US COME UP WITH THE KIND OF BUSINESS ACCOUNTING RULES AS WE'RE MOVING FORWARD BECAUSE A LOT OF IT WAS LEFT OPEN TO GRAY AREA FOR SCHOOL SYSTEMS TO DETERMINE.
WE'RE TRYING TO ALSO BE VERY CAUTIOUS ABOUT THE PIECE OF 75% OF THE FUNDING FOLLOWS THE KID TO AN APPROPRIATE SCHOOL.
WE'RE TRYING TO BE DILIGENT TO NOT PUT THE SCHOOL SYSTEM OR ANY STAFF MEMBER IN A POSITION WHERE IN FY27 OR 28, WHEN THE RUBBER STARTS TO MEET THE ROAD, THAT WE HAVE TO MAKE HARD ADJUSTMENTS BECAUSE WE'RE OVER ON THE AMOUNT OF MONEY THEY SHOULD GET BECAUSE OF STAFFING.
WE'RE TRYING TO BE SMART ABOUT IT AND STEP INTO IT, THAT IF A SCHOOL IS OVERSTAFFED BASED OFF THE NUMBER OF KIDS THEY HAVE NOW BEFORE THE RULES REALLY DIG IN, CAN WE START PULLING BACK A POSITION OR TWO, OR MAYBE THREE DEPENDING, REALLOCATE IT TO ANOTHER BUILDING OR ANOTHER WAY SO THEN WE'RE NOT SITTING HERE IN FY27, 28 GOING, I HAVE TO REDUCE SCHOOL X BY SIX PEOPLE BECAUSE I'M OVERFUNDED BASED OFF THIS FORMULA.
AT THAT POINT, YOU RUN THE RISK OF LOOKING AT A RIF OR SOMETHING ELSE, AND I DON'T EVER WANT US IN THAT POSITION OR ANY STAFF MEMBER IN THAT POSITION.
WE'RE TRYING TO TAKE THAT HARDER LOOK THIS YEAR.
WE DON'T PUT OURSELVES IN THAT POSITION AS IT COMES IN.
WE HAVE TWO MORE YEARS TO GET IT FULLY RIGHT.
FY27 IS WHEN WE HAVE TO BE 100% WITH THE MONEY FOLLOWING THE KID.
AGAIN, WE WANT TO MAKE SURE THAT WE DON'T HAVE HARD CORRECTIONS TO DO IN 27 THAT WE'RE MAKING THE STEPS IN THE RIGHT WAY.
OUR PROPOSED ADDITIONS THAT WE'RE LOOKING AT.
WE HAVE A SPECIAL ED SECRETARY POSITION THAT IS A PART TIME POSITION AT PRESTON ELEMENTARY SCHOOL WITH A FOUR DAY A WEEK POSITION.
THAT'S JUST WHERE IT WAS YEARS AGO.
IT IS IMPOSSIBLE TO FILL WITH A FOUR DAY A WEEK POSITION.
IT'S BEEN VACANT FOR A WHILE. IT'S HARD TO FIND.
WE'RE MAKING THE RECOMMENDATION TO MOVE THAT ONE POSITION TO A FULL TIME.
THE BIGGEST PART OF THAT INCREASE IS THE BENEFIT SIDE THAT COMES WITH IT.
IT'S NOT THAT MUCH FOR ONE EXTRA DAY A WEEK, BUT IT'S THE BENNY SIDE THAT KICKS IN ONCE YOU GO 4-5 DAYS.
EVERY OTHER BUILDING, IT'S COVERED USING FIVE DAYS.
IT JUST MAKES SENSE TO MOVE IN THAT DIRECTION TO HELP PRESTON ROUND OUT.
IT'S UNDER PROPOSED ADDITIONS AND NOT UNDER THE COST OF DOING BUSINESS BECAUSE IT'S UP TO US IF WE WANT TO ACCEPT A RAISE IN RENT.
[00:35:05]
WE PAY RENT TO THE CULINARY CENTER TO BE ABLE TO USE THAT FACILITY TO USE THEIR KITCHEN AND THINGS THERE.WE'VE NEVER INCREASED SINCE WE STARTED USING IT, WHICH IN THE CULINARY CENTER, THEN EAT WHATEVER COST TO WHATEVER REVENUE OR GRANTS THEY GET TO COVER OUR COSTS ASSOCIATED WITH IT.
>> THE REQUEST WAS TO INCREASE THE RENT THAT WE PAY TO USE THAT FACILITY BY $4,500 TO HELP THEM WITH THAT PIECE AND IF IT HASN'T INCREASED IN THAT LONG WE'VE BEEN THERE, IT SEEMED ABOUT ACCURATE FOR THAT SPACE TO MOVE THAT FORWARD.
THE LAST ITEM IS OUR YMCA PARTNERSHIP.
WE'VE HAD A PARTNERSHIP WITH THE YMCA THAT PROVIDES FAMILY MEMBERSHIPS TO ALL EMPLOYEES AT THE COST OF AN INDIVIDUAL MEMBERSHIP.
THE YMCA SUPPLEMENTS THIS QUITE HEAVILY FOR US TO BE ABLE TO PROVIDE IT.
IT WAS PROVIDED THROUGH THE [INAUDIBLE] MONEY THROUGH GRANT FUNDING.
WE WERE NOT SURE HOW WELL IT WOULD UPTAKE WHEN WE FIRST DID IT.
EMPLOYEE WELLNESS WAS AND IS STILL AN IMPORTANT THING, BUT IT WAS REALLY GLARING IN OUR SURVEY ABOUT WORK-LIFE BALANCE, AND TAKING CARE OF ONESELF, AND ALL OF THOSE THINGS.
WE ADDED THIS IN ALSO AT THE TIME THAT WE BROUGHT OUR WELLNESS PROGRAM BACK INTO EXISTENCE FOR EMPLOYEES.
THE UPTAKE HAS BEEN MORE THAN I THOUGHT.
STAFF ARE USING IT VERY REGULARLY.
NOT JUST DENTON, ALL THE YMCAS, IT'S ACTUALLY SURPRISING.
I THINK WE MIGHT HAVE MORE GOING TO QUEEN ANNE'S COUNTY Y THAN WE DO WITH THE DENTON, BUT BASED OFF LOCATION, IT MAKES SENSE.
THE DENTON Y GETS VERY HEAVILY UTILIZED.
ALL OF OUR FULL-TIME EMPLOYEES HAVE ACCESS TO THE BENEFIT.
AT THE COST OF BASICALLY $240 A STAFF MEMBER, I THINK IT'S BEEN A GREAT BENEFIT FOR OUR STAFF THAT'S BEING UTILIZED.
THIS WOULD BE BRINGING IT IN TO THE OPERATING BUDGET, WHICH WOULD BRING IT IN AS A ADDED BENEFIT, AND IT WOULD BECOME JUST A BENEFIT THAT CAROLINE COUNTY OFFERS TO ITS EMPLOYEES AND STAFF MOVING FORWARD.
THOSE ARE THE PROPOSED ADDITIONS THAT WE'RE BRINGING TO THE BOARD FOR CONSIDERATION.
AT THIS POINT IN TIME, WE'RE NOT ANTICIPATING ANY OTHER ADDITIONS.
A COUPLE OF OTHER THINGS JUST TO HIGHLIGHT AS WE'RE TALKING ADDITIONS AND OTHER COSTS.
WE TALKED ABOUT THE TWO BUSES THAT ARE NEEDED.
MRS. SIGNET BEEN DOING AN ANALYSIS OF ANY LONG-TERM LEASES THAT WE HAVE WITH ENTITIES THAT ARE BASICALLY COSTING US INTEREST OVER SEVERAL YEARS AND ONCE OUR ANALYSIS IS COMPLETE, WE INTEND TO BRING THAT TO THE BOARD FOR CONSIDERATION AS A PAYOFF.
WE STILL HAVE SOME MORE MONEY TO PAY DOWN OUT OF FUND BALANCE TO GET BACK IN WITH POLICY.
BUT WE VERY LIKELY WILL BE BRING TO PAY OFF AT LEAST TWO LEASE PAYMENTS THAT WOULD YIELD AN AVERAGE SAVINGS OF CLOSE TO 300,000 A YEAR IN THE OPERATING BUDGET.
ONE OF THOSE IS A LEASE THAT HASN'T BEEN AROUND LONG, AND ONE OF THEM IS ONE WE'VE BEEN CARRYING FOR QUITE A WHILE.
THAT WOULD GET US OUT, WE'LL NEED BOTH OF THOSE.
THIS ISN'T THE END OF THE SHOW FOR US BY ANY MEANS.
WE'LL CONTINUE TO LOOK TO FIND WAYS TO GET THOSE ADDITIONAL SAVINGS TO KEEP THINGS FROM BEING IN THE OPERATING BUDGET AS RECURRING COSTS TO US IF WE CAN GET AHEAD AND NOT HAVE TO KEEP PAYING THOSE THINGS OUT OVER TIME.
ANY QUESTIONS ON THE PROPOSED ADDITIONS?
>> I'M JUST CURIOUS WHAT THE FULL RUN IS THAT WE HAVE [INAUDIBLE]
>> [INAUDIBLE] AN INCREASE ISN'T MUCH. I JUST ASSUME [INAUDIBLE].
>> WHEN IT COMES TO THE YMCA PARTNERSHIP, YOU SAY WE'RE GOING TO MOVE IT INTO OUR REGULAR COST OF DOING BUSINESS.
>> IS THERE A WAY ONCE A YEAR, I'M GOING TO SAY PRIOR TO THIS BUDGET DISCUSSION THAT WE COULD HAVE A SURVEY THAT GOES OUT TO ALL OF OUR EMPLOYEES TO FIND OUT THE PERCENTAGE OF WHO'S ACTUALLY USING IT JUST TO MAKE SURE THAT IT STAYS.
BUT IF WE'RE GOING TO BE SPENDING MONEY OUT OF OUR BUDGET ON IT THAT IT'S ACTUALLY BEING UTILIZED, THEN WE CAN GET A IDEA OF COST PER USE.
>> CAN DEFINITELY DO THAT, MR. JONES.
THE OTHER NEAT THING, THE Y IS ABLE TO TRACK SINCE WE PAY HIM, THE Y IS ABLE TO TRACK USAGE AS WELL AND GIVE US A REPORT ON THAT SO WE CAN MAKE SURE THAT WHEN WE DO THAT ANNUALLY, PART OF THE BUDGET NEEDS TO REVIEW.
>> JUST TO MAKE SURE WE'RE SPENDING OUR MONEY.
DO WE PAY FOR USES OF MAIL OR IS IT GENERAL?
>> WE PAY OUT OF OUR GRANT. OUR GRANT PAID FOR IT.
THE YMCA SUPPLEMENTS ABOUT HALF THE COST.
>> [OVERLAPPING] WHEN WE GET THIS ROUTE, WOULD WE JUST PAID FOR USING IT?
>> WE WOULD STILL PAY THE FLAT RATE.
THEY BILLED US FOR A RATE OF X NUMBER OF EMPLOYEES.
[00:40:01]
THEY TRY TO ANTICIPATE ABOUT HOW MANY YOU'RE TAKING AND IF WE'LL TAKE THAN WHAT THEY ANTICIPATE, THEY EAT IT.BUT THEY'VE GOT IT SET AT A CERTAIN AMOUNT THERE FOR THEM FUNDING, BUT THEY'RE FUNDING HALF OF IT OUT OF THEIR FUND RAISING EFFORTS AS THE Y HELP SUPPORT.
THE BIG PART IS, TO BE HONEST TOO, IS THE YMCA WOULD LOVE TO SEE A PERMANENT FOOTPRINT IN CAROLINE COUNTY SOMEWHERE.
WE'RE ONE OF THE LAST PLACES THAT DOESN'T HAVE THEM.
IT'S BENEFICIAL FOR THE YMCA AND ALSO TO HAVE A PARTNERSHIP WITH THE SCHOOL SYSTEM.
THEY'RE TRYING TO HAVE A Y HERE, SO THEY'VE BEEN FANTASTIC TO WORK WITH.
BUT AGAIN, IT'S A GREAT DATA POINT SUGGESTION TO PULL IN FOR US TO MAKE SURE THAT WE'RE ON TOP OF IT EVERY YEAR.
IF WE FIND A [INAUDIBLE], WE DEFINITELY SHOULD BE LOOKING AT GOING, MIGHT NOT BE WORTH IT AT THAT POINT IN TIME.
>> I THINK AS LONG AS THE Y CAN PROVIDE THE INFORMATION ABOUT UTILIZATION. [OVERLAPPING]
>> THEN WE SHARE HERE WHEN IT STARTED BECAUSE IT WAS BASICALLY RIGHT AFTER COVID I BELIEVE [INAUDIBLE] NOW THAT IT'S SHIFTING FROM THAT, IT HAS BEEN A GOOD PARTNERSHIP AND THEY HAVE BEEN OFFERING IT TO OUR SCHOOL.
[BACKGROUND] PERSON OR FAMILY TO GO OUT AND WE APPRECIATE [BACKGROUND] AS A BOARD I THINK.
BECAUSE I REMEMBER TALKING ABOUT IT LAST YEAR AS WELL AS NOW BECAUSE THE BOARD BE AWARE OF SAY THE PARTNERSHIP ONCE THE GRANT WAS GONE, THAT JUST [INAUDIBLE].
>> IF I CAN JUST ADD ANECDOTALLY, GRANT WAS FOR TWO YEARS AND IF YOU REMEMBER WE HAD SOME LEFTOVER FUNDS, AND SO WE DID USE THE GRANT FUNDS TO DO A THIRD YEAR.
THAT THIRD YEAR WAS IN QUESTION THOUGH OVER LAST SUMMER LIKE HOW'S THE GRANT GOING TO SHAKE OUT.
THE QUESTIONS THAT WE GOT FROM EMPLOYEES ABOUT, IS THIS GOING TO CONTINUE? I HAVE TO GO BACK TO MY E-MAIL, BUT IT WAS A HOT TOPIC.
AT WELCOME BACK, I KNOW DR. SIMMONS ANNOUNCED WE ARE CONTINUING IT, AND THAT WAS ONE OF THE PROBABLY LOUDEST APPLAUSES OF THE DAY FOR THOSE THAT WERE THERE.
IT IS CERTAINLY BENEFIT THAT AND IT IS BEING USED.
>> I THINK TO ADD TO THAT, AS A BOARD, WE WANT TO SEE THE EMPLOYEE USE IT.
WE WANT TO PROVIDE IT FOR THEM.
THAT BEING SAID, IF WE DO A SURVEY OR USE IT, MAKE SURE THAT YOU USE IT AND LET US KNOW THAT IN THE FUTURE THAT THIS BOARD WILL BE DIFFERENT THAN THE OTHER PEOPLE AND OTHER DECISIONS TO MAKE.
AS IT GOES FORWARD TO KEEP IT GOING, AS EMPLOYEES MAKE SURE THAT IT'S USED AND IF YOU GET SOMETHING AN E-MAIL OR SOMETHING ABOUT HOW ARE YOU USING IT, MAKE SURE YOU FILL IT OUT AND I SEND IT BACK SO THAT WAY WHEN THE PHASES CHANGE, THE PROGRAM [INAUDIBLE].
>> GREAT POINT. THIS BUDGET TO BE HONEST, WHEN YOU'RE PULLING IT TOGETHER, BOTH MS. SIGNET AND I PROBABLY AT LEAST THREE OR FOUR TIMES IN THE LAST WEEK, WE KEPT GOING BACK TO EACH OTHER GOING BECAUSE THIS IS PROBABLY THE SMALLEST PROPOSED ADDITION WE'VE SEEN IN THE NON REGRESSIVE YEAR.
BUT THE BIG PART OF IT, THE LARGEST ITEM IS THE NEGOTIATED AGREEMENTS PIECE AND PUTTING THAT AT THE FOREFRONT, REALLY DID TAKE A LOT, BUT WE DO THINK WE'RE IN A REALLY GOOD SPOT IN TERMS OF STAFFING WITH MAKING SOME ADJUSTMENTS AND REALLOCATING OR SHIFTING SOME RESOURCES AROUND TO BE ABLE TO MEET OUR NEEDS GOING INTO FY'26.
WE'RE FEELING PRETTY GOOD ABOUT WHERE WE ARE BUDGET WISE.
WE DO ANTICIPATE THE ONE NUMBER TO COME DOWN A LITTLE BIT.
AS JILL POINTED OUT, THE BLUEPRINT TRANSITION AMOUNT, BUT SHE DID NOT INCLUDE THE HIGH NUMBER IN THE DRAFT BUDGET SUMMARY.
SHE REFLECTED WHAT SHE BELIEVES THE ACCURATE NUMBER IS.
I DO BELIEVE WE'LL GET A MORE ACCURATE PICTURE IN ABOUT ANOTHER WEEK OR TWO, IT ALMOST TAKES A COUPLE OF WEEKS AFTER SESSION TO GET THAT.
>> I DON'T KNOW IF I'M WRONG TO SAY THIS, BUT I FEEL LIKE THIS BUDGET REALLY DOES REFLECT WHAT THE BLUEPRINT IS.
THE FINANCIAL COST OF THE BLUEPRINT IS EDUCATION BECAUSE WHAT YOU HAVE IS, YOU HAVE A LOT OF THE INCREASES ARE GOING TO SALARY INCREASES, AND A LOT OF THAT WAS THINGS THAT WERE MADE, NOT ONLY TO FOCUS ON EMPLOYEES, BUT THE FOCUS THAT THE BLUEPRINT ALSO PUT ON THE SHIFT OF WHERE THE MONEY GOES AND THE FACT THAT IT'S ALSO A SHIFT FROM.
I FEEL LIKE WHEN IT WAS DESIGNED, IT WAS DESIGNED WITH WE'RE GOING TO FIGURE OUT A WAY TO MAKE
[00:45:01]
THIS COST INCREASE WORK AND THEN IT'S GOT TO A POINT NOW WHERE THE COST INCREASE IS THERE AND WAS THOUGHT ABOUT THROUGHOUT THE WHOLE SESSION, HOW ARE WE GOING TO DO THIS? WELL, THERE REALLY WASN'T A LOT OF CUT.I DON'T REALLY FEEL LIKE IF IT WASN'T DONE BY CUTTING, IT WAS DONE BASICALLY BY INCREASING REVENUE AND ALSO SHIFTING WHO IT IS, AND THAT'S SHIFTING IT TO THE COUNTY WHERE OUR COUNTY COMMISSIONERS ARE NOW GOING.
THE PAIN OF HOW DO WE MAKE THIS WORK BECAUSE I DO FEEL LIKE WHEN IT WAS CREATED, IT WAS CREATED WITH THE FACT THAT WE'LL MAKE IT WORK.
WE DON'T KNOW HOW WE'LL MAKE IT WORK AND THEN NOW WHEN WE'RE GETTING TO THE HOW, IT'S GOING TO COME OUT OF OUR TAXPAYER, ANYBODY THAT PAYS TAXES, THAT'S WHERE IT'S GOING TO COME FROM.
BUT I DO BELIEVE THAT IF SHIFTS AREN'T MADE IN 2027 BY THE GENERAL ASSEMBLY, THINGS ARE GOING TO HIT REALLY HARD IN CAROLINE COUNTY, PROBABLY IN '28.
I THINK THAT'S ABOUT, AGAIN, ME JUST FORECASTING AND LOOKING AT SOME THINGS.
SOME OF OUR NEIGHBORS ARE IT'S TOUGH AND EVERYTHING FOR US HAS BEEN TRENDING ABOUT TWO YEARS BEHIND DORCHESTER COUNTY IN PARTICULAR.
VERY SIMILAR TAX BASE. WE'VE BEEN TRENDING ABOUT TWO YEARS BEHIND WHERE THEY ARE, AND WE'RE ALSO KNOWING THAT WE'RE TRYING TO LEARN FROM AND PUT OURSELVES IN POSITION TO PREPARE FOR IT.
BUT I THINK BY ABOUT '28, THINGS ARE GOING TO GET REAL TOUGH.
STATE BUDGET WISE, THE EFFORTS THAT WERE MADE IN THE GENERAL ASSEMBLY AND WHAT WAS APPROVED AT THE VERY END ACTUALLY DID NOTHING FOR THE FY'28 BUDGET PICTURE FOR BLUEPRINT.
IT DIDN'T. IT HELPED IN '26, SOMEWHAT MAYBE IN '27 A LITTLE BIT.
BUT IN 2028, I THINK WE'RE STILL BACK TO 5,000,000, 06,000,000 AND MOST OF THAT IS THE BLUEPRINT PIECE BECAUSE THEY HAVEN'T FIGURED OUT HOW TO PAY FOR IT IN '28.
JUST WE'RE TRYING TO PUT OURSELVES IN A POSITION THAT WE CAN COVER OURSELVES HEADING INTO THAT.
ANY OTHER QUESTIONS? AS THINGS POP UP, PLEASE FEEL FREE TO REACH OUT TO ME OR MS. SIGNET.
WE WILL CONTINUE WORKING AND BRINGING REVISIONS TO THE BOARD LITERALLY EVERY MEETING UNTIL WE APPROVE THE BUDGET, WE BRING IT FOR APPROVAL.
THE BUDGET WILL START TAKING A LITTLE BIT MORE SHAPE ONCE WE GET A LITTLE BIT MORE FROM THAT STAGE TO GET IT MORE INTO THE BLUEPRINT CATEGORY ALIGNMENT MOVING FORWARD SO THE FULL DOCUMENT WILL BE READY TO COME TO THE BOARD BY JUNE AT THE LATEST WITH ALL OF THE SUPPORTING EVIDENCE THAT GOES IN IT WHICH IS WHAT THE BOARD IS PROBABLY USED TO IS.
SOMETIMES I COVER A SHEET ON IT, BUT THE BIG MULTI PAGE CHART AND BUDGET THE ACTUALS OVER THE LAST SEVERAL YEARS.
THIS IS WHERE IT WILL EVENTUALLY COME TO YOU GUYS.
WHEN WE GET THE REVENUE NUMBERS IN APRIL, IT TAKES A LITTLE WHILE TO TRANSITION IT INTO THIS BIGGER DOCUMENT.
BUT IF ANY QUESTIONS, PLEASE FEEL FREE TO REACH OUT AND ASK AND WE'LL KEEP WORKING THROUGH IT.
>> THE HEALTH INSURANCE IS A DEFINITE [OVERLAPPING] INCREASE THERE.
>> I WAS REALLY HOPEFUL FOR SEVEN OR EIGHT.
THAT'S PROBABLY THE LEAST AMOUNT IT'S EVER INCREASED FROM THE HIGH WATER MARK.
USUALLY IT COMES DOWN TWO TO 3%, BUT THIS WAS A [INAUDIBLE] HOPING THAT'S TO SAY THE LEAST.
>> THERE ARE NO PHYSICAL ADDITIONS?
>> NO, MA'AM. I BELIEVE THAT WE CAN HANDLE IT.
WE BELIEVE WE CAN HANDLE OUR STAFFING NEEDS THROUGH REALLOCATION OF POSSESSIONS.
BUT NOT ADDING NOT ADDING POSSESSIONS TO THE BUDGET.
WE THINK WE CAN HANDLE IT WITHIN THERE WITH SOME OPPORTUNITIES OPENING UP.
>> MR. MENGEL HAS NOT BEEN HERE FOR PROPOSED ADDITIONS.
>> I THINK THAT PART HAS BEEN COVERED THROUGH THE SUMMER PROJECTS.
[BACKGROUND] [OVERLAPPING] [LAUGHTER]
[4. Upcoming Meetings/Events]
[00:50:23]
WE'VE GOT THE LIST FROM RACHEL THAT KEEPS US AWARE OF WHAT'S COMING UP.I KNOW A COUPLE OF TIMES HAD BEEN ADDED BECAUSE WE WEREN'T SURE ABOUT THE TIME FOR A COUPLE OF THINGS.
>> WHEN IS OUR NEXT BOARD MEETING?
>> MAY 6 IS THE NEXT ACTUAL MEETING.
ON THE 22ND EARTH DAY AND THE GS IS CELEBRATING THE EARTH DAY EVENT, WE DO HAVE THE CLIMATE WORKSHOP THAT MORNING FROM 11:30 TO 12:00. [OVERLAPPING]
>> I ASK FOR A MOTION THAT WE CLOSE THIS MEETING AND GO INTO CLOSE SESSION.
>> FOR THE PURPOSE OF BREAKING BETTER.
>> TO DISCUSS THE APPOINTMENT, EMPLOYMENT, ASSIGNMENT FOR MOTION, DISCIPLINE THE MOTION, COMPENSATION, REMOVAL, RESIGNATION, OR PERFORMANCE, EVALUATION OF APPOINTEES, EMPLOYEES, OR OFFICIALS OVER WHOM THE PUBLIC BODY HAS JURISDICTION, ANY OTHER PERSONNEL MATTER THAT AFFECTS ONE OR MORE INDIVIDUALS.
>> I'LL MOTION THAT WE ADJOURN OPEN SESSION AND GO INTO CLOSED SESSION FOR THE STATED REASONS.
>> HAVING SECOND THAT WE CLOSE THE OPEN SESSION AND GO INTO A CLOSED SESSION AT THIS TIME. ALL IN FAVOR.
THANK YOU. THANK YOU, RACHEL.
* This transcript was compiled from uncorrected Closed Captioning.