All right, we will now open up the open workshop portion of the meeting. 534. We'll do a quick roll call. Trusty Basher is absent. Trusty Burke >> here. >> Trusty Gdeski Rodriguez >> here.
>> Trusty Gonzalez. >> Trustee Sanola >> here. >> Trust Clefane >> here. >> Trusty Young >> here. >> Vice President Majio >> here. >> President Desmond >> here. >> Okay.
So all items [snorts] on the agenda were discussed at committee and sent home on Wednesday with the exception of two the tenative budget and the healthcare adjustment which were it's
all good which were submitted after the state aid figures came out on Thursday afternoon. Uh on Friday, the full budget was sent home along [clears throat] with the PCR healthcare adjustments. I did receive a decent amount of questions from the
trustees, which I appreciate. Um does anyone have any outstanding questions for now? >> I was hoping we can talk through like the 5% versus 2% and the differences there. >> Sure, we could talk about So, are you
discussing salaries? I just want to be clear. No, no, >> this is with the healthcare. >> Okay. >> Included. >> Sure. So, the healthc care figures came from our healthcare provider. They give us a projection of the cost moving forward. So, on that healthcare cost out that was sent out, you'll see everyone
what their plan is and then the total cost for that plan. So, that number is the exact number that we have to budget as a district. And then that goes to the county and has to tie out to your budgetary figure.
So the total increase of percent of taxes to taxpayers what? >> So it's it's not that's the on the expense side. So the total increase in health care is $12 million. We received $6 million additional in
state aid and we are doing a $7 million healthc care adjustment. Does that I I just want to make sure I that clarifies exactly your question. I think the question is from what I was
hearing the last couple of days is are we going to the taxpayers and saying we're raising a 5% cap? >> The healthc care adjustment is reaching out to the taxpayer for that adjustment.
That That's correct. That's the question. There's no money in reserves. >> So no reserves are specific for those ex you know we have a maintenance reserve account and we have a capital reserve account. The adjustment for health care is exactly what we're trying to do. It's
specific to healthcare. Um, I don't want to speak for other districts, but from whom I've talked to, you know, more than half are at least discussing it and pretty much forced into doing this adjustment based on the increases and the state health benefits is increasing
even more than what we're experienc. However, the adjustments there were to change carriers, whole thing.
I think the what's everybody understands that healthcare prices uh premiums went up. The what is uncomfortable is asking for a 5% increase
to cover that. There's the state offers no programs. Everybody's in the same boat is the problem. >> Everybody's in the same boat. And while the state keeps saying that they're trying to reduce health care costs across the board, there's no live action. What what the district did that
was beneficial is two years ago now, we switched from the state plan to the private plan. And in that, we only saw 5% increases in health benefit costs. So while this is a big jump, it could have been substantially worse cuz our total
health care costs while [clears throat] rising are still manageable. In some instances in the state plan, you have 50 and 60% increases. >> I was just going to say if you were still in state health benefits that is a 40 minimum 40% increase and that number
is closer >> to tens of millions in an increase. >> That's correct. There is no intention of in any way cutting services in a [clears throat] classroom,
increasing class sizes. >> So this tenative budget does exactly that. It does, you know, obviously we talk about this in terms of percentages. 82% of our budget, this tenative budget is staff and benefits. That's a large
portion. So we trim the fat on the other 18% which includes you know some subscription plans. Nothing that's going to directly impact the classroom, the teacher. We tried to really nibble around the edge to make this budget work. But one of the biggest pieces is
that health benefit adjustment that really actually does several things. Not only does it cover the cost of the health benefit increase, it also puts us in a more real revenue driven. You know, our basically what I'm trying
to say is that our local fair share is $133 million. So, we are significantly under our local fair share. With this state aid increase, our maximum state aid increase is only $3 $3 million more. We're we're
so heavily dependent on state aid that on a year-to-year basis there could be drastic swings. So right now we're about 61% of our revenue comes from state aid and with this budget it would be 38% would come from the local level. So
we're still significantly under even with this. I understand that this is an issue but it was not this is driven by the healthc care increase not by anything that we could control. >> The health benefit adjustment is something obviously allowable
by statute but circumstance. >> Yes. So >> what is the dollar amount? >> Seven the the adjustment is 7 million. So 5% what is >> so the total number is 85 million >> okay >> is the total number of the local tax
levy yeah so everyone knows that there's the 2% cap right on local levy the things that are allowable beyond that is the enrollment adjustment healthc care adjustment um there's a couple others that are a little bit they don't really apply to our district uh some tuition
things that are out there but this is one of the legal allowances So okay minus so this this 5% number this 2% number that we're talking about cap is also including salary increases correct >> so there's two different sides the
revenue side is going to drive how much money you're taking in on the expense side is where you're talking about salaries so salaries which when I sent home The total number for salaries in this projected budget is 132 million or
about 60% of the budget. The other 22% is health benefits. And of that, and if you're talking about increases, they're all driven by the collective bargaining agreements and that's how they are budgeted. By doing this, sorry, I'm thinking as
we're talking here. By doing this, like there has been concerns that there has been like lack of nurses, longtime waste for eval etc. Like by us doing this, is that money going to also be distributed to cut down on these concerns from
parents like we don't have enough nurses for school field trips or like I know there's potentially a bus issue. I don't know any I don't have any truth or facts behind that. Let me just be very clear. >> Um and then like all of these children waiting for evals, etc. Like is some of that money going to be going to those
services and trying to cut back on that? >> Yeah. So this budget with the 132 million I spoke of, [clears throat] while those positions might not be filled, that does budget for vacancies that may exist. Um
I'm not going to talk about the specific ones. I you can certainly look through the PCR. um and see where those vacancies are. But this does represent some vacancies, >> vacancies remaining on the PCR as a placeholder for if and when you need to.
>> Correct. So, I I'll speak in very general terms. This isn't specific, but if there's a math teacher with a vacancy, that means that there's a budgeted amount for that math teacher that we could potentially hire in next week.
Are there any other specific questions? >> The total dollar to the taxpayer and increased year-over-year is what? So that the actual total dollar is about $8 million. >> So >> that's the increase from last year. Now
remember a large portion of that is this healthcare adjustment >> but per taxpayer. I know like we can put whip out a calculator just how much is that going to hit the taxpayer? >> See that's a difficult question to specifically say. I can make an estimate but it depends on the total taxes from
the county from the municipality. Um there's there's a lot of variables there. I don't want to say a number and just be completely off without looking up that information because it would also depend on the average home home values >> and we haven't gotten any additional
funding clearly from our local municipality. We're still at the same percent of the tax levy that they're giving us. >> [clears throat] >> The municipality, like everything else, can only do what it's allowed to do by law. If there's a change in circumstance, it's something that needs
to be addressed budgetarily, and the request is made that way. So, it's nobody's sitting with gold these days. Dan, I'm not sure if this was already said down there. I wasn't hearing. We
are not cutting though any academic programs, any summer programs because of budget cuts or anything. >> So, they're not budgetary. However, there are a reduction in summer programs specifically due to expiring grants. >> Okay? >> You know, a lot of those COVID area
grants have all fully expired. So some of the programs for summer specifically will be reduced but to your point what I said was there won't be a reduction based on finances for any classroom activity or staffing or any of those
type of things >> and the summer programs that are being cut which ones are they? >> So the I'll just tell you the ones that we are running. So we will be running ESY and we will be running credit recovery. There are other ones that run, but they're really more city
ran. But the two for the board of ed are those two. In that circumstance, sometimes this city, a municipality has access to grant money that a board of education would not. So, you just go scouting around trying
to find the right money for the right programs to get keep the kids involved, engaged. Um, it takes a village. It's a good point though. Um, I don't know if this is fair question at
this point. community head. Have there been any big adjustments or will there be >> going forward? >> So, community ed is what's known as an enterprise fund. You can think of it
almost like a its own little business. >> The revenues it generates has to cover the expenses that it takes on. Um so community ed um specifically certain programs generate a substantial amount
of funding which year over year always cover their own cost. They generate yeartoear is a little different but anywhere from like $150 to $200,000 a year which is then based on the law forced to go back into community. You
can't use that for any other purpose but that whatever that enterprise fund is. >> That's the same for food service as well. >> So there's no money for printing processing. >> No printing process.
[laughter] Sorry, this is serious. >> Are there are there any other questions? I don't not try not to rush you. I just want to make sure I cover everything if anyone has anything. >> Will there be a full budget presentation like you normally do every year >> before we actually say yes, we're going
to do this? >> Two different things. So, this is the tenative budget. This allows me to submit it to the county. They review it for legality, all those things. And then there's something called the budget hearing. That's the presentation that'll happen on April 28th. Um,
and that's what that that's the budget hearing. >> So to be clear, we can say like we can submit this to the the county like make sure there's approval on it and then discuss further next steps after that. >> Absolutely. Yes. >> Your final
>> and that would include like salaries broken down etc. Right. >> Yes. Okay. No, if I could add something. Um, this this budget that the governor gave out was a proposed budget. It still has to go to the Senate and to the legislature
and the assembly. So, they can cut whatever programs they think is is appropriate for them to cut. So, we could even be seeing maybe a >> a larger reduction in our thing. And I think that's they meet in March and April. I think June 30th is when they
actually formalize it. So, the legislature has to look at all the first. It's only proposed. >> Yeah. So, the district, it's a little backwards. The district has to submit its approved budget by the beginning of May, and the final budget for the state
isn't done until technically July 1st, but yeah, >> the timeline doesn't make any sense. That's the way it works. >> Yeah.
>> Okay. >> Okay. >> Anyone else? >> All good. >> All right. >> Yeah. Yeah. >> Good. All right. So, we are going to adjourn the open workshop. We'll be back in probably won't leave, but we'll be
back in about 8 minutes. We're going to open the regular meeting and then session and then we're going to go into close session back here. >> Yes. >> Yes.