Good evening everyone. We'd like to call the meeting to order and welcome everyone. >> This meeting is being held in accordance with the schedule of meetings adopted at the organizational meeting held January 5th, 2026. Adequate notice of this meeting of the Kennorth Board of Education has been provided to the Home
News Tribune, the Canoworth Star Ledger or the Star Ledger, the local source on January 15, 2026. A copy has been filed with the counter borrow clerk posted in the board office the counter borrow hall really and Harding schools as is provided by the open public meetings
act. In addition to the notice notice of this public hearing had uh an advertised uh budget was posted to the district's website in the legal notices section on April 9th 2026 following the approval of
the executive county superintendent of schools. >> Thank you Mr. Ganell. Can you please rise for the to the flag to the flag of the United States of America and to the republic for which it stands. One nation under God,
indivisible, with liberty and justice for all. >> Mr. Gallo, can we please have roll call? >> Yes. Thank you. >> Biner >> here. >> Here. >> David here. >> Haber here. Herdina
>> here. >> Kenichi >> here. >> Tears >> here. >> Zimmerman >> here. >> We have quorum. >> Thank you. >> The purpose of this evening's meeting uh is to conduct the annual uh public hearing for the annual school district budget. Uh present the budget to the
community, adopt the budget, and approve additional resolutions uh that are on the agenda this evening. Okay. >> Right. >> Yes. It's up there.
Hi, good evening everyone. Um, thank you for being here. Um this budget cycle has been uh extremely difficult as I know you're all aware. Uh but it's one thing for me to say that after two years of being a superintendent. It's another thing for Mr. Canella um to say that after 37 years. So I just want to take a
moment and recognize uh his hard work to make uh this budget be what it is. Um I feel good about this budget in the sense that uh we're in a better place than last year, but we're in a very tough situation as a school district. And Mr.
will go into further details about that, but I want to thank him and also want to thank the finance and facility committee um for all their hard work and late nights as well as the full board for their support during this process. Um tonight, uh we're going to go over the budget goals again so that we can remind
the public of of where we started. Uh talk about the school experience and the impact of this year's or of next year's budget. Um and then Mr. Gell is going to go into talking about the budget status, review of our expenditures, our revenues. He'll talk about bank cap. He'll recap our balances and reserves,
talk about our capital projects, move on to the tax levy and its impact, and then um end with a call to action. So, that's the agenda for this evening's presentation. Um so, I'm just going to go back to October where we presented our budget goals, which I'm proud to say
that we have stuck to. Um we began the process months ago thinking about um all of our needs. Uh making sure that we're prioritizing the needs and requests that have the greatest impact on curriculum, instruction, assessment, and achievement. Uh it's our foremost goal here. We also um of course want to
prioritize our overall district goals. Um we want to develop athletic and co-curricular opportunities. Uh specifically, we focused this year on David Burley Middle School since we have um new space uh new principal and a new school dynamic with that. So we wanted
to make sure that this coming budget supported um that ongoing growth of that um part of our district. Uh we continued to commit ourselves to zerobased budgeting. Um, we also want to make sure that we're providing our pre-K staffing um and servicing that four-year-old
population which we had um promised the community back when we passed the referendum. Uh, so we want to stick to that. And of course um our final goal was to minimize our tax impact u by maximizing our tax dollars. Uh so that's been an ongoing goal and that's um a
driver of many of the decisions that we make and and a lot of the discussions that we've had with the finance committee. Um, so those were our goals during this process. So, um, I wanted to talk briefly about what this, um, budget does for our school
experience. Um, as I just said in our goals, you know, we are honoring our commitment to full day 4 preK as a priority. So, I'm really proud of that. Um, it's not easy to do. Um, it's it's a new program that just started in January. Um, sorry, it's not a new
program, but it's a new addition to that program. Um, so it's um great to see that we can continue moving forward in that regard, and I think that's going to be great um for our community long term to be um receiving those students um at an early age. Um we've been able to
maintain our instructional, co-curricular, and athletic programming currently in place in our district. Um and that is, uh no small feat. Uh it's very difficult to do that. You've probably heard headlines from other districts um with lots of significant cuts and such. We're not there right
now. Um so we're proud of that. Um this budget does afford a modest expansion of some middle school co-curricular programming and I think that'll benefit our students. Um so we're able to do that. We are shifting our resources a bit from supplies to personnel. So,
we've had to make some cuts in supplies in order to make sure that we as best as possible can maintain our personnel. Um, you know, finally, we were we're still working on um finding efficiencies in our schedule to um prioritize
personnel. We're hoping to uh hire back a librarian um for our district, specifically at Harding, and we're looking at ways to um keep our classroom teachers at a at a stable place. Um, finally, of course, we um are
maintaining uh we're ensuring that our district is compliant with certification, special education, the NJDOE, and QAC requirements. Um, so that's always an important component here. The impact of our budget, um, and I said this at our last meeting and our
previous presentations regarding the budget, there remains an ongoing impact. Um we can't shy away from the realities of that this is having our budget situation is having on our teaching staff and on our um students and schools. Um last year you know we lost
one administrative position and eight staffing positions. Um that created um some larger class sizes in upper elementary, middle school, and high school. Those continue uh into the future um which we don't like. Um but that's where we are. So we're stable
right now. um because of those cuts from last year um and that those we're not able to grow is basically the the gist of it. Um similarly the interventions that we want to be providing we're providing um but we could be I wish we were back where we were two years ago
with our intervention program. Um so we're providing interventions for students who need them. Um but it's not as robust as we want it to be. Um so that is an impact that is our teachers are experiencing and our students are experiencing. Um, finally, the last bullet there says
that there are no programmatic cuts as a result of the 262 27 school budget. Um, but simultaneously there's little growth in programming too. So, it's great that there's no cuts, but we're not able to grow in the way that we want to grow. Um, you know, with that said, um, Mr.
Gell is going to take over from here. Um, talk about a lot of the specifics and nitty-gritty details. So, I'm going to turn it over to him and just thank him again for all of his hard work. and he has a lot of details to share with you. So, Mr. Canella, >> thank you, Mr. Davies. Uh, and I echo
his uh statements regarding the hard work that went behind the and thank uh the finance chair, Mr. Lady, and the the finance committee for their hard work over the months of January and February trying to
piece this all together. I'd also like to thank Mr. Davies as well as the my fellow administrators who really put their heads together to tackle this um um daunting task. Um there is no really sugar coating the budget. Um it was a
very difficult budget season. Uh we entered the process facing what many have called the fiscal cliff at a a point where rising fixed costs and declining revenues threatened the very core of our programs through uh disciplined uh uh belt tightening and
strategic alignment. I'm pleased to report that we have averted the fiscal cliff for 2026 2027 school year. Uh we have protected the student experience and maintained the integrity of our facilities, class size and programs.
However, it is my professional responsibility to be candidate uh with the board and the community. We have reached a point uh where the how of our budget, the spreadsheets and the line items is being dictated by the why on this screen. Uh a structural deficit
isn't just about spending. It's about the fundamental mismatch between our obligation and our tools. uh you will see that we have reached this balance uh state primarily through the significant use of fund balance. While this is a necessary bridge for
this year, using one-time savings to cover uh recurring operational costs is the definition of a structural deficit. A structural deficit means our underlying expenses, mandated costs like contractual salaries, healthcare, utilities, and special education are
growing faster than our static revenue streams. In short, our our recurring uh uh costs uh are outpacing our revenue. It's a a theme you will hear throughout my presentation this evening. We are facing the expenditure gap where the
costs we must pay are growing faster than the revenue we are allowed to collect. The big three salaries, health care, special education, student mental health services are all outpacing our static revenue streams.
When personnel costs rise by 8.35%, revenue is capped at 2% before statutory adjustments. The gap grows wider every single year. Finally, I I want to address the why um can't we be just a
little more creative question. The reality is that we operate within a rigid framework of fixed constraints between statemandated code compliance, the legal requirements of collective bargaining, our creative flexibility is severely restricted.
We aren't choosing these costs. where we are managing them within a set uh set of rules that often prioritize compliance over fiscal local control. Often the board and administration have very creative cuttingedge solutions to
these problems only to be thwarted by code compliance or collective bargaining restraints. We are working within a framework where the costs are fixed but our flexibility is restricted. This is why we say the current model is unsustainable. We have value engineered our operations
to the limit. We we are no longer facing a management problem. We're facing a structural framework problem that requires the strategic um uh that requires strategic shifts like shifting the election to April. Uh so we have
that we've been discussing over the past several months and are going to be considering implementing later this evening. This slide represents the math that keeps board members, superintendents, and school business measures up at night. It illustrates the fundamental disconnect between the school, the cost
of doing business, and our legal ability to fund it. The most one of the most important numbers on the screen is the 2.8 uh CPI or consumer price index. uh that is the actual increase in the cost of goods and services we need to
run our schools. Everything from paper technology to cleaning supplies. However, we are governed by a 2% tax levy cap. Every year the inflation exceeds that cap. We are effectively being asked to cut our uh buying power by the difference. We're essentially
trying to solve a 2.8% problem with a 2% tool. Energy is one of the most vol uh largest non-personnel costs uh and it is notoriously volatile. Uh while we have made strides in solar and energy efficiency, we are still heavily
impacted by oil price fluctuations. These aren't just market trends. Uh they are line items that can swing by tens of thousands of dollars based on global events entirely outside of our control. We are still we are still feeling the
long tale of the supply chain disruptions. Procurement isn't isn't is isn't just more expensive, it's more complex. Shipping charges and rising costs of essential materials mean that the same dollars we spent two years ago simply don't go as far today. And
finally, the most significant driver of our budget, the human capital, is governed by multi-year collective bargaining agreements. These contracts are essential for retaining highquality teachers, but the math is unforgiving. When negotiated salary increments and
mandated health benefit costs combined to grow at a rate significantly higher than 2%, we face a structural gap before a single student even enters the building. We are legally bound to honor these obligations, yet legally capped in how we can fund them. a collision of two
state laws that leaves the local district caught in the middle. When you combine these four factors, you uh see why bite belt tightening eventually hits the wall. We have optimized every internal process we can. We are now at the mercy of the external economic
reality that requires us to rethink our long-term funding strategy. Start to get into the meat of the revenues and the expenditures. Our expenditures profile reflects the significant inflationary pressures facing the district. Fixed costs,
specifically salaries, health benefits, um uh property, insurance, and utilities continue present substantial budgetary challenges. Uh the cost of doing business is rising faster than our revenues, requiring us to prioritize immediate contractual mandated
obligations over long-term capital instructional uh investments. You can see here uh where where there are significant decreases in the in the budget in the areas of support services, technology, facility maintenance, operational plan, upkeep of grounds. But
then you could see the significant increase is in the area of health benefits and uh regular instruction which is basically salaries and special education. So where do we stand today? Um to provide a uh complete and transparent
fiscal picture, we are looking at the budget through two distinct lenses tonight. Uh the first uh chart presents our budget using adjusted figures. It offers the most direct applesto apples view of how successive reductions in
state aid have physically impacted our district's spending power and operational capacity over time. The second chart adjusts the current year and prior year incumbrances. Um this alignment is not only requirement for our state submission but also ensures
our reporting remains cons uh consistent with generally account generally accepted accounting principles or GAP. This view reflects our legal our actual legal and financial commitments as they move across fiscal years. By reviewing
both we can see the raw impact uh of aid loss while maintaining the fiscal rigor required by state oversight. So this this slide I've always found very interesting. It's the programmatic breakdown of of of the budget. Uh it
serves as a budget foot footprint providing a transparent map of exactly where your tax dollars are committed. It illustrates that while more than half of our budget is dedicated to our instructional core, a significant portion is driven by mandated services
and fixed operational costs that leave very little room for discretionary spending. The two largest slices represent uh uh regular uh education at Harding and Brley. This is the product of the district, classroom teachers,
textbooks, the direct instruction. While it's the largest part of the budget, it's also where uh we are most vulnerable to inflation as these are the primary human capital costs. Then there's mandated services such as special education which is our second
largest signal expense. This is important for the public to understand that this is a mandated cost. We are are legally ob legally and ethically bound to provide these services. As compliance uh requirements grow, this slice of the
pie naturally expands, often at the expense of other discretionary areas. The employee benefits insurance piece um is a significant um wedge. Um uh this
segment represents the the the the increase in our healthc care uh spike that we had this year uh and uh uh an expense that now consumes nearly 16th of every dollar we spend. Also included in this car category are essential
liability uh and safety protections including workers compensation, property and casualty errors and omission and cyber liability insurance. As discussed these premiums are subject to the same aggre aggressive market pressures as our health care costs.
Undistributed programs uh are the are the hidden gears behind the budget. They include the building maintenance, technology, leases, debt service, administration, and utilities. These costs are highly sensitive to energy and supply chain issues that we talked about earlier. Uh the intercolastics uh
athletics, I'm going to put a plug in for it this year. um uh uh it's often one of the most scrutinized parts of the budget um because people consider it an extra, but it's only 2 point 2.16% of
the budget. Um and they represent one of the highest returns on investment for student engagement and school culture. Uh at just over 2% of the budget, our athletic programs are one of the most efficient tools we have for student retention and character building. While
some may see this as discretionary expense, we view it as a core component of the student experience for several reasons. Participation and belonging. About 50% of our student p uh student body part participates in at least one sport. For many students, this
connection to the school is what drives their academic performance and uh attendance. Athletics funds more than just jerseys and referees. They cover the coaching stipens, transportation to away games, the safety equipment necessary to meet
state compliance for student athletes, and then finally, community identity. Girly athletics are a primary point of pride and connection for the broader community. These programs foster the leadership, discipline, and teamwork skills that aren't always captured in a
standardized test score, but are vital to post-graduation success. In short, we are investing roughly two cents in every dollar to provide hundreds of students with a structured, safe, and competitive environment that keeps them engaged with their education.
Moving on to labor costs. While uh last year's budget um uh as Mr. uh Davies uh indicated was defined by a forced decrease uh in spending and staff reductions due to the the the the loss of state aid and the uh overall budget.
This year's narrative is one of shifting priorities to absorb double-digit increases in healthcare and rising cost of special education. We are forced to make difficult reductions in other critical areas. Uh this includes scaling back on allocations for facilities
maintenance, teaching supplies and textbook renewals. Uh if we look at the core of our budget, our people and their benefits, the math of the of our structural deficit deficit becomes unavoidable. Across uh just these three categories, salaries, health benefits,
and pensions, our costs are increasing over $2 million this year alone. That is an a 8.35% increase in our um largest expenditure bucket. We are seeing a 5.5% increase in salaries and stipens. Uh it is important
to understand that this isn't solely about raises. It represents the cost of of of the high quality educators our community demands and the contractual obligations required to keep our schools running. Furthermore, additional staff were required this year to comply with
statemandated special education class uh size limits. A significant portion of the stipen increase is dedicated to expanding uh the activities at the middle school as Mr. uh Davies um stated was one of our
budget goals. Uh this fulfills the key commitment uh made by the board to establish a distinct middle school identity by investing in these clubs and programs. we are fostering the same sense of school pride and student participation that has been so successful at the high school level.
Uh and finally, healthcare uh pension, social security. Um this is perhaps the most critical figure on the screen. Our employee benefits costs are projected to jump about 22%. It's market driven force
entirely outside of the board's control, representing a $960,000 increase that must be funded before a single dollar is allocated towards new textbooks or technology upgrades. To mitigate this, we have formally marketed our uh full insurance portfolio. We're
currently awaiting final analysis from our brokers to determine if a carrier switch is necessary. It is important to note that any change in providers must strictly comply with labor relations requirements to ensure coverage uh remains equal to or better than our
current uh uh programs. Uh when our primary expenses grow by 8.35% but the state limits our primary revenue growth to 2% we are effectively a uh being asked to do more with less
every single year. This table is the clearest evidence of why our current funding model is unsustainable and why we must look towards structural changes such as the April election to protect the quality of our district. Now that we've examined the um where the
money uh goes, uh let's look at how um we get to fund those commitments. This slide outlines our revenue uh strategy through three primary lenses. Uh the utilization of allowable statutory adjustments uh to the tax levy, our
strategic use of reserves to maintain stability and the current status of our debt service as we look forward look toward future relief. So the focus number one is on the tax levy adjustment. The proposed current expense tax levy uh is 3.75%.
While this exceeds the standard 2% uh cap, it is important to note that this is a compliant uh and allowable increase. At our March 25th presentation, we went into detail about the specific statutory exceptions uh such as enrollment uh adjustments and
healthc care adjustments that are uh permit this adjustment to meet our operational needs. Focus number two is the strategic use of reserves. uh we are utilizing district reserve to bridge uh uh current uh funding gaps. However,
this is a finite resource. I will provide a detailed analysis of how uh this deployment impacts our immediate uh fiscal health and more importantly what it means uh for our long-term budgetary sustainability. Uh and then uh finally
the focus the third focus I want to focus on is the debt service stability. uh debt service tax levy has reached a point of stabilization after several years of infusion of capital reserves and tax increases. We anticipate the tax impact to remain relatively flat until
the 2930 school fiscal year at which point the 2016 bond is scheduled to expire. At that point that will provide future structural relief or fiscal opportunities uh to the board.
Let's talk a little about state aid. While our overall uh state has increased, which is undeniably positive, a closer look at the distribution reveals a concerning uh some some concerning trends. Uh my primary concern lies with the shift away from
categorical aids to in favor of equalization aid. It's important to remember the distinction. Equalization aid is driven by community wealth and property values whereas uh categorical aid is tied directly to student demographics and specific needs. The
state's decision to reduce special education funding by uh $83,000 is particularly staggering when our total district commitment to special education exceeds $9 million. Forget that was a state this special education is a state
mandate. That term state mandate, state pay just doesn't just doesn't work here. The current funding formula's wally knowledge is flawed. While the state may recognize the need for a systemic overhaul, it remains to be seen if the governor and the legislature possess the
fiscal fortitude uh to prioritize student needs over zip codes. Uh we will continue to advocate for a formula that reflects the actual cost of educating our diverse student population. Uh during our March 25th uh meeting, the
board moved to submit the tenative uh budget to the executive county uh county superintendent. At that point, we explored the foundational technical me uh metrics of uh of the budget, specifically the minimum tax levy, the the tax levy cap uh calculation and
district adequacy. I won't get get into that uh tonight. Uh but it is important to note that Kennaworth remains significantly below the adequacy target, meaning the state's own funding uh own formula admits we are spending less than what is required to provide a thorough
and efficient education. We will now dive deeper into the remaining technical aspects um to provide a complete and transparent view of our fiscal standing. To understand our revenue flexibility, uh we could look at uh bank cap. In short, bank cap
is not real money or cash reserves. Uh rather it is the illegal authority to raise the tax levy above the standard 2% limit without a separate ballot proposal. Under New Jersey Administrative Code, a district can bank
any unused taxing authority and carry it forward uh for use in any of the next three budget cycles. However, this is only permissible if the district has follow uh fully exhausted all uh other eligible statutory spending authority.
So, what are the key takeaways for our district? current bank cap. Due to the increase in healthc care cap adjustment, we were able to uh generate uh $459,000 in bank cap. Uh future outlook um short
of a monumental shift in state aid distribution. I do not anticipate the district being in a position to generate significant bank cap in the foreseeable future. Uh and then authority versus assets. It is critical to distinguish
the bank cap uh bank cap from uh is critical to distinguish bank cap from free balance or surplus. Bank cap is the right to ask for more tax revenue. Surplus is actual cash on hand from previous years. Um we will review
surplus uh in the next section. Our financial house is not just measured by our annual budget but our recapitulation of balances. It's important to understand that these balances are not a
single un uh undifferentiated pool of cash. Instead, they are categorized to specific buckets each governed by strict statutory requirements. Uh each category is defined by three key regulatory guard rails. accumulation, how the funds are
generated, example, through unspent appropriations or a specific board resolution. Number two, maximum thresholds. The state mandates caps on how much we can hold in certain reserves such as capital reserve limited to the the district's long range facility plan
or emergency reserves set at a specific dollar amount. And then finally, uh usage restrictions. The law dictates exactly what these funds can be spent on and when, often requiring specific board action or even state approval to release
them. In the following slides, we will break down our current uh standing in capital reserves, manate reserves, and unassigned surplus so you can see exactly how we are positioned in both emergency needs and long-term stability. The figures uh we are presenting tonight
are based on our most current internal projections while we await the final certification of the 24 2025 audit which has been delayed due to unexpected health challenges faced by our external auditor. We remain currently confident in the conservative nature of these
estimates. Furthermore, the finance and facility committee has already met to discuss and establish contingencies to ensure fiscal stability regardless of the uh final certifi uh certification timing. The first two categories to review are our unexpected uh un
unassigned free balance which is surplus and our restricted legal reserve which is excess surplus. Ideally districts uh ideally a district should not rely on these funds to cover recurring operational costs. surplus is our savings account intended for unforeseen
emergencies and uh fiscal stability. However, to maintain our current instructional programs for one more year, we are proposing to appropriate $2.5 million to support that this budget. Hopefully, the state will come through
for us. Um while this is a significant increase from our current levels, it is necessary to move uh uh to to bridge the gap in this fiscal cycle. Using reserves to supplement recurring expenses is a high-risk fiscal strategy.
It creates a structural def deficit uh meaning we are uh funding outgoing costs with one-time revenue. Once these funds are spent, we do not they do not automatically refill. If we continue to rely on this balance to budget the uh
balance the budget, we face the fiscal cliff that we've been talking about where our reserves are exhausted, but our expenses remain. This path is unsustainable long-term and underscores the urgent need for a more equitable state aid formula. Uh this will be our
challenge for the 2027208 budget. So, um, maintenance reserve, uh, we are appropriating $73,000 for specific, uh, projects, um, which I'll review in a minute, and we will have a remaining
balance in maintenance reserve of $277,3. Capital reserve, we're not appropriating anything this year, and it remains at $234,711. we have made monumental strides over the past several years in the in the area of
capital uh improvements um and we are in very good shape with regards to that. So um so hopefully at some point we'll be able to start putting money back into that but um right now our capital and our facilities are in excellent shape.
Uh and then finally, emergency reserve. We are not appropriating anything uh into this year's budget and it remains at $250,000. And uh someone asked me the other day, what's the purpose of emergency reserve? Uh we made a decision quite a few years
ago to to to fund the uh emergency reserve, which is at at its max of $250,000. uh for the specific p purpose of in a year like next year where we're really tight and three students move in with extraordinary needs out of district
placements or something like that and we can't find it within the operating budget that's what that emergency would be reserve would be. It's very restrictive but in those particular cases the commissioner has allowed the use of emergency reserve would be used.
So, specifically, the capital projects that we are going to be taking a look at um um through that $73,000 of maintenance reserve are classroom renovations, including the uh STEM renovation, STEM room renovation over at Harding, uh and then the resurfacing of
the the gym floors at both buildings, uh for a total of $73,000. Uh the tax levy uh the calculating the tax levy is a is a relatively simple calculation getting to that a figure there that 38,425,000
that's the challenge but once that's established um it's a relatively simple calculation. Um you take your total budget and then you have these offsets. So in our particular case, we're appropriating $2.5 million from a free balance uh both
excess surplus and regular surplus. We're withdrawing $73,000 from maintenance reserve. Uh we have revenue from Winfield uh which is through our send receive relationship. Um then we have miscellaneous revenues which are uh
interest revenues um and um um interest revenues and rental of facilities uh and then our state aid uh federal aid and then finally debt services backed out of that. So you take those total offsets of
14,181,000 subtract from the 38,425,000 and you come up with our tax levy of 24, uh243,441. This repres This slide represents the bottom line for our local taxpayers. It
is where the operational needs we've discussed meet the actual tax bill. When presenting this, it's uh important to distinguish between current expense, the cost to run the schools, and debt service, the cost of past building projects. Uh this table breaks down the
two components that make up the total tax levy. So the current expense is increasing by 3.75% as we discussed earlier, while the state cap uh is at 2%. The law allows for specific adjustments primarily to
account for the massive increase in our health care costs. This 3.75% increase is what allows us to maintain our current programs and staff and staff without deep cuts. It represents a $876,266 increase, which as you can as you as you
saw in our labor uh cost slide earlier, it's actually less than the8 $960,000 jump in health care costs alone. Essentially, this uh levy adjustment is a direct p uh a direct pass through to cover mandated benefits.
Second category is debt service tax levy which is going down. Uh there's a small bit of good news here uh in our long-term obligations. Our debt service levy is has decreasing to decreasing by about $6,500. This is due to the
stabilization of our our bond payments uh and the schedule of debt. Uh, as we noted earlier, we expect this line to remain relatively flat until 2029 when the 2016 bonds expire, which will eventually provide more significant
relief to the taxpayers. So, the overall tax impact here is 3.36% when you combine those two figures um the uh current expense levy and the debt service levy. So, in a year where
inflation is at 2.8% 8% and our healthcare costs are in excess of two uh 22% a total tax levy of 3.3% is a result of exhaustive value engineering and the strategic use of $2.5 million in
reserves. We're asking for this increase not to expand but to sustain ensuring that the quality of education in the district remains at the level our community expects. So, the tax impact, the proposed uh budget reflects modest adjustment for
the average homeowner, primarily driven by the operational costs while uh being partially offset by the reduction of debt obligations based on average home assessed at $184,888. Remember, assessed value does not equal
market value. Okay? It's a big typically there is a big difference. Um, and I believe you can go around to the the the bureau's website to find out what your assessed value is. Okay. Um, total school tax. Uh, so the total annual tax
for the average uh household will be $6,356 represents an overall increase of uh net increase of $26.77 per year. So, the resolution that the board will
be considering later this evening, it is um u using no bank cap uh generating $45,74 for the use of uh uh for potential use in 2728
or the two years after that. It's approving withdrawals from maintenance reserve for the projects that we outlined. improves the capital projects that we discussed. And then finally, it sets the tax levy um um as outlined
here. So the there's the two pieces of the tax levy um and you can see that there. Okay. If we rely solely on the 2% tax levy cap uh
while our mandated costs grow uh at nearly double that rate, we face the uh future of diminishing returns. First, we will see program uh contraction. We take great pride in our extracurricular and electives, but these are the first
things threatened when the budget is squeezed. Second, we will see capacity strains, efficiency eventually becomes overcrowding, leading to growing class sizes and a direct hit to student support. Ultimately, we risk an overall
decline in quality. The standard of excellence this community expects cannot be maintained on a structural deficit. So, the three pillars of long-term survival. To avert this, we aren't just
identifying problems. We are proposing three specific pillars for sustainable future. The first pillar is local control. Moving the election to April isn't about asking the community to carry the load alone. It's about providing us the a local safety net.
Under the current system, Trenton sets a 2% cap that doesn't account for 22% healthc care spikes. By moving to April, we stop letting outsiders decide if our program survive and we put the power
back where it belongs, in the hands of the Kennorth residents. The second pillar is state advocacy, but local efforts are only half the battle. We must demand a return on the investment our residents already make.
Uh k Kennorth taxpayers send millions in income and sales taxes to Trenton every year. Yet we see a fraction of that return in the form of aid. This is not just a budget issue. It is a fairness issue. We need to be relentless in our
advocacy to ensure that the Kennaworth is no longer treated as a donor community used to solve the district district's problems to used to solve other districts problems while our students are squeezed. When we talk
about state advocacy, we're talking about our money. Kennorth residents work hard and pay significant state income taxes and sales taxes. Currently, massive portions of that money stay in Trenton to fund other districts while our aid remains stagnant or declines.
We aren't asking for a handout. We aren't asking We are just asking for our fair share. We are asking that the money counterworth sends to the state comes back to Countorth to support the children and the infrastructure of this burrow. The final pillar is the mandate relief.
We need a statutory adjustment that recognizes the reality of special education costs. These are essential life-changing services, but they are driven by federal and state mandates. They should not be restricted by the
same 2% operational cap as general supplies and utilities. We need the state to fund this uh fund what they mandate. As the quote often attributed to Winston Churchill goes, "Gentlemen, we have run out of money. Now we must think."
Tonight, we are doing more than thinking. We are acting. We are proposing a path that combines local empowerment with state advocacy. The April election is our uh immediate shield. We celebrate as we celebrate the 250th anniversary of the American
Revolution, we remember that our nation was founded on a simple powerful principle, the right to have uh a say in what and how we spend our taxes. By moving our election back to April, we
restore that democratic right. We move away from a system where our budget is dictated by a formula in Trenton and towards a process where Kennaworth residents have the final word. It allows us to protect our standard of excellence right here at home through
representation. Simultaneously, our commitment to state aid reform is a long-term sword. We will continue to fight in Trenton until the tax dollars leaving this burrow finally start coming back to support the children of this burrow. Currently,
Kenther is enduring a modern form of taxation without fair representation. Our residents work hard and contribute their uh full share to the state. Yet, the formula redirects these dollars elsewhere while our our own classrooms
are squeezed. We are no longer content to be a donor community. We will fight for a fairer aortionment because the spirit of the revolution wasn't just about the burden of the tax. It was about the power of the people to decide their own future. This budget buys us time, but our
strategic plan buys us the future. A balanced budget is a victory tonight, but a sustainable, fair funding model is our mission for tomorrow. >> Thank you. Are there any questions? >> Yeah, I
when we talk about the the moving of the election from November back to April, and I say back to because that's what we once were. Can we have some sort of clarification for the public >> in in plain terms what exactly goes into
their hands by that vote? In the past when we were the April election, public came out and voted for the budget period and the budget either passed or failed. If we had an actual an extra referendum, they voted on that additionally and it
either passed or failed. And if the budget failed, we wound up with that cut situation and back and forth with mayor and council and the board trying to figure out what was going to happen. >> So,
>> if we go back to it now, if I'm not incorrect, it's not exactly that same situation. It's different. >> Correct. So, the the state modified that law. That's the way it was up until just a couple years ago.
um the entire budget was up for if you move back to the April U election um in the past >> time frame the whole budget was up >> now it's only anything that is in excess of the 2% cap with adjustments so let's
take this year for example if we were to present this budget if this budget was being this was next April and this was what we presented there would be one vote
on the ballot in April. It would just be for for candidates, board members, that's it. Because this budget is not over the cap with this the adjustments, >> right?
If for example we wanted to go beyond that and we wanted to say we want to reduce class size in first grade by hiring one more teacher and we want to expand the prek uh uh program even further um and we want to hire two
teachers there. So we want three more teachers and we put that as a separate question and that is defeated. That's it. It's not considered. We can't even we would not even be allowed to do it if we found the money >> just like the old re >> just like the old way. Right.
>> So it's not the budget for it's not so so >> they would only be voting on excess. >> This budget wouldn't be in jeopardy if it was moved next year. Only what is in excess of the cap. >> Okay. >> Okay. And some of you get to stay an extra
couple months >> according to that thing. It's like everybody a couple extra months. >> Yep. >> Any other questions? >> I just had a comment for you. I'm happy that you brought up athletics. I think that in this community, all of us who
are parents here, all of our children are very involved in athletics or extracurriculars. Um, I' I'd really really like to see um more of an effort put forth to use some of our new space that we have um
you know um to generate some revenue. Some of our surrounding districts do that and they do a really good job of it. For example, Union I think brings in like three to nine million a year. I get that they're a lot bigger than us, so that's not exactly comparable, but there's an opportunity there. And and I
think that when you say we need to be creative, we do. Um that's not that's not restricted. So um you know, we've discussed it um but I I just wanted to say it publicly that there are some opportunities that we can look at. Um maybe even some shared services we can
think about with our bureau um that may help us out long term. And and I I do think that creativity can come in many forms outside of these restrictive measures you've discussed. You've done a really good job, Vince. I congratulate you. Um, you know, >> I know you're retiring and this is not
an easy job. So, big shoes to fill, but I I'm glad you brought that up because it's something that this town really really relies on. >> Yeah, I I I brought up specifically because I've been paying attention to what other districts are doing because a lot of these districts are facing town I live in uh is looking at cutting
potentially 70 teachers. Um, and you know, they're now targeting athletics, uh, and the different extracurricular activities. Uh, and I get it. I mean, that's that's usually I just wanted to put a plug in how important it is. Uh, regarding shared services, we have a great relationship with our burrow. Uh,
we do a lot of shared services with them. Uh, whether it be um um, first of all, we're basically the wreck department. I mean, our facilities are are the Kennorth WCK. I mean, they don't have, you know, that that that's basically it. Um, so that's that's what
we're giving to them. They're providing us garbage pickup and salt and things like that. And sometimes we'll go down and clean burrow halls floors. So, we do a lot of shared services with with that. Um, uh, and then the revenue, it's, you know, we took a took a hiatus last year
because our auditoriums were being, uh, renovated, but, uh, Mr. Connelly has made some aggressive moves and we're a lot of those weekends we're renting that facility. Mr. Ather knows that. Um, you know, so we're bringing in some decent amount of revenue and now we're looking
at uh um some equity issues within the fields and we're generating some some revenue there. Small amounts because they're more student focused programs. Uh but um there is some revenue coming from there. But if you have any other ideas that'd be great. I got got to take
a look what Union does to generate that type of money. That's that's that's great. >> Are we like a very popular or like centrally located place? Because I know we have a ton of cheer competitions, dance recital, like they're always held here and people are coming from all over
the state. So like what attracts Kennorth and like how can we get it? >> I think I think it to be honest with you, I think it was our facilities. I mean our facilities are I mean people always liked our facilities. I mean >> air conditioned. >> Yeah. air conditions auditorium. Yeah. Um uh the the cheering I think that was
a lot to do with Miss McGawan uh who was our cheer coach. She brought a lot of that stuff stuff here and then people would see it and they say, "Okay, let's let's piggy back off of that." So I think that had a lot to do with it. Um but uh you're right, there's a lot of I mean Irish dance, we have bodybuilders
here, we have uh uh fusion dance, we have lots lots of lot lots of different opportunities. We're all dancing on that stage. >> But we also only have like one or two fields, right? It's not like other towns where they have multiple football fields or multiple softball fields, etc. So,
and we got to compete with the wreck also. We got to make sure our kids >> get on the fields, too. So, you know how much >> issues there are with scheduling wreck soccer and and football and everything else. So, to squeeze a lot of other stuff into the town gets a little difficult at times.
>> We also have obligate we also have our own obligations. We can't rent the facilities all the time, you know. So, we're not going to rent the facilities and kick Mr. Weinstein and the our crew out of out of out of uh doing their play or the fall play. And next year, we're going to be having a middle school play. So, that's going to be
>> two two middle school plays. >> Two middle school plays. So, now you're instead of having two >> opportunities, you're going to have four uh spaces being used. So, that makes it a challenge as well. >> I I think that's also an opportunity for
revenue. our shows. Um >> I some other places don't disagree with you. >> Yeah. Some shows some some other places really do a really good job of bulking up the >> advertising. >> Yes. Yes. And we can we can do a much better job.
>> I've always I've always Jeremy knows that I've always advocated that we don't do enough advertising. I mean there's there's there's a former thespian myself. Um, uh, there's nothing like there's nothing like playing to a full crowd. I mean, you know, right?
>> I mean, it it's it's it's you just you just >> live off that energy. So, so sometimes when you see some of the the crowds, it's like, come on. You know, you really want that place packed. So, >> so it's important. >> I was just happy you didn't go into your grease routine.
>> That's it. Grease, baby. Grease is the word. Okay, other questions. >> Okay, >> thank you. >> Thank you, >> Mr. Lady. Would you like to do a committee report? >> Well, um I think Mr. Ganella and Jeremy
just kind of went through it, but the budget, um you know, I just want to thank, you know, the finance committee. Um fine, Mr. Dave, Mr. Haber. Um you know, a lot of meetings since December, a lot of effort. Um we were I think everybody was prepared. We always ask the tough questions not only of the
superintendent and the business administrator, but all the administrators that went up here. Um, you know, we start at a zero budget. It's not I know we've said this a hundred times, but we don't start from last year's budget and layer on top of it. We start at zero, which makes things a lot tougher um to go over dollar by
dollar. So saying that the only thing I um you know the facilities committee and the finance committee um recommends that we approve the budget. Um there's also three three more um resolutions. Um
resolution two is to move the school election to April. Um three is the appointment of the project engineer for the fire alarm system and four again is the award of the contract for the fire alarm installation. So other than that, that's all I have
for my report. >> And I I would just like to reiterate that we did spend a lot of hours uh putting this budget together. There were no shortcuts taken. We examined everything and tried to squeeze as much juice from a very dried piece of fruit
that we could. Um so you know, the the the citizens of count should know that this is the best effort to keep the school functioning, give Mr. Davies the uh the ability to lead the school and continue to make it grow. So um you know
I second Mr. Law's uh statement to approve the budget and look forward to the future. So >> um Mr. Canal, would you mind just giving a brief description of the fire alarm? >> Sure. >> resolutions that we're approving tonight
because that's a significant chunk of change. >> Yeah. Um so Brley's system is significantly uh challenging uh in in that um where my notes see here
it's a little older system um so uh and it's constantly going into trouble uh and costing us quite a bit in maintenance. So um you know these are basically electricians who come in and do this this type of work. So it's not it's not cheap. Um so um it's a full
replacement. So the the there's there's a new system and the new addition uh and this will complement the the system so it integrates it. It comes up completely. Um uh what we decided to do is not go through our engineer to design
it but use the company that um um maintains our system currently to develop the specifications. uh comfortable with that. Number one, it's through a cooperative purchasing agreement through a data. So, the
pricing is is basically predetermined. Um but it's also good to know that the the the company that's familiar with our system, they didn't initially stall it. It's a uh but they've just been maintaining it is going to be now upgrading. So, they're very familiar
with the system. Um there's a lot of layers of I feel protection in the way we're doing it. There's local code officials who are required to oversee this process, but then we're also hiring this other company to oversee it as well. Uh what I basically call a commissioning type of thing. So, they're
going to take a look at the the plans, their responsibilities to take a look at the plans, review them, consult with the uh the contractor, make adjustments if they feel it's necessary, and then they're going to be on site to work with the local code officials uh and um
ensure that the product is installed the way the specifications are. >> Yeah. The other thing I was hoping you would comment on is that this was a part of our referendum. >> Yes. >> Yeah. The funding funding part of it is what I was most interested in.
>> Yes. >> This may be a silly question, but is the So, Brley, this is Oh, never mind. It says middle and high school, but the middle school has the new one already installed or whatever. >> Correct. never had any um issues with
having the two different when there's been security drills or if it has malfunction like something's happened. >> I haven't heard anything about that. >> The only issues are turning the alarm off um and getting the kids back in the building after the drill has the the system operates effectively
>> to warn and get everyone out of the building. It's the >> resetting it and silencing the alarm and and getting the the system out of trouble. that's where the problems lie. Um, so if you're a teacher in the room, you know that sometimes you're standing outside with your students for extra
long because people are inside trying to navigate this double system. One pretty old, one brand new. They're both talking to each other. Um, and that that's part of what needs to get >> and like whenever you have security drills or whatever, it pertains to both.
They both go out. >> The whole building operates as one security. >> Yes. >> Thank you. >> Thank you. Anyone else any questions before we open up the meeting to the public? >> Okay,
>> we'll first do the um isolated to just the budget because this is technically a public hearing. >> Uh and then we'll open up for general comments. >> Okay. Public comment will now be accepted. The board sets the limit to the public to speak at the board meeting to five minutes per person unless the prior
permission is being been uh granted by uh the board to extend time pursuant to board of education bylaw 0167. Please be reminded that while members of the public may speak on personnel matters during public comment, the board
of education is legally prohibited from discussing individual personnel issues in public session unless the employee is uh issu issue has requested a public discussion. The board role board's role is to set policy ensure effective
operation of our schools while personnel recommendations are the exclusive responsibility of the superintendent of schools. board reviews and acts on on these recommendations in accordance with state statute and district policy, but does not initiate or manage individual
staffing decisions. Um, for the record, please include your name and address prior to making a comment. And at this point, we will uh be uh calling for public comment on the budget only. So that's the resol first
resolution. So is there a motion to to >> So moved. Second >> made by Mr. David, second by Mrs. Tears. All those in favor? >> I. >> Okay. Opposed. Okay. We're close session for not close session. Public comment
for the budget. Are there any questions regarding the budget? >> No. Okay. You want to transition to general public comments? >> Yep. >> Okay. >> Motion. >> Another motion. Mr. >> need to Are we open?
>> Yeah. >> Second by David. Okay. Is there a motion to open it up for regular comments? >> Made by Nancy. Seconded by >> Second, >> Mr. David. >> Okay. All those in favor? >> I.
>> Okay. Opposed. Motion carries. This is for general public comments. >> Ready? >> Okay. >> Good evening. Carmen Buco 238 North 18th Street Kennorth. Uh Mr. uh Canella,
congratulations on your retirement. >> Thank you. >> Next year is not going to be pretty. >> No, >> you'll save a lot of gray hairs. Uh I just wanted to compliment Mr. Davies. Thank you for returning my call promptly and uh answering my questions. I'm sorry
I kept going back and forth and I'm a trust but verified type of guy. Um, I congratulate you all on this budget. $27 a year is a cup of coffee maybe once a week or once a month.
Uh, I am running for Congress and one of the things that I say all the time is the fact that our what we do today is our children's legacy. We can't fail them. It upsets me that we have to fight on a constant basis to get money for
these children to whether it be have extracurricular activities. We should not be fighting with the state. The state just should be giving us what we need and what we deserve. Laying this all into taxpayers. Unfortunately, last night I didn't get to go to a meeting,
but it kind of bothers me. I got a bunch of messages from people. Oh, where's there's no transparency going on. Nobody knows anything that's going on. And I said to one individual, well, you can blame our elected officials all you want, but you have to take some
ownership. There was over a hundred people at a meeting last night so concerned about what's happening at Merc, but you and you're talking about your kids and the detriment to their to the children of the future and this room is
empty. It's upsetting, especially when I hear it, and I'm a straight shooter. And I'm going to go back and I'm going to say with all due respect, you had an opportunity to see this budget this evening. It should have been done tonight. You should have been here tonight if you're
so worried about the future of your children. My only concern about the April budget is the fact that uh it may be a small question next year to increase teachers or to increase this
or to increase that. Based on what you're showing tonight, we could be 4 8 12 15 20% behind come year 2028. Uh how do you feel like that's going to benefit the people? Now you're going and
saying, "Well, this year we may need a $27 increase, but next year we may need 500. Following year we may need a,000." So I hope uh and pray that you guys are truly fighting the state to say I'm done paying for other people and digging into
the people of Kennallorth. Our taxes are skyrocketing and it's not fair to the homeowner that the state is not stepping up to the plate. With that, thank you very much for your time and thank you very much for the evening and congratulations on a very very hard budget.
>> Anyone else? >> Make a motion to close the public. >> I think we have somebody else. >> Hello, my name is Nicholas. I live on 323 Maplewood Avenue. I am a senior here at David Brley. The reason why I am here
tonight is because I wanted to make the town aware of some news I heard today. The administration has made a decision that I feel is going to affect the students negatively next year and most likely years to come. The decision has been made to cut a full-time physical education teacher. I have witnessed the
class sizes firsthand and what large class sizes can do to not only the dynamic of the class, but the safety of the students. We already have classes that reach We already have classes sizes that reach over 35 students. What will these classes look like now? I have a
little sister in the school system as well as I hope she gets to enjoy the same type of engaging, safe PE classes as I did. When she grows up, I'm not sure if cutting teachers will give her that experience. Thank you for your time. >> Thank you. >> Anything else?
>> Anyone else? >> Okay, make a motion to close the public portion of the meeting. Second >> motion made by Mr. David, seconded by Mrs. Tears. All those in favor? >> I opposed. Motion carries. >> Okay. Resolution.
>> Yes. Okay. Uh there are four resolutions on this evening's agenda. Do any of these need to be voted on separately? >> No. Okay. So, resolutions one through four on the agenda. >> Biner, >> yes. >> Crinkolei, >> yes. >> David, >> yes.
>> Haber, >> yes. Yes. >> Tears, >> yes. >> Zimmerman, >> yes. >> Pinichi, >> yes. >> Motion's carrying unan. >> Uh, need to go into close session. >> We do not. >> Okay. Can I have a motion to adjourn?
>> Salute. >> Second. >> Second. >> Motion made by Mr. David, seconded by Mrs. Tier. All those in favor, please. >> I opposed. I have it. Motion carry. We're now journed. Thank you very much. >> Thank you. >> Thank you. Thank you.
>> Good night. Thank you.