Yep. Patient concerns. Alright. Moving on. Reports. I attached some information about the, net assessed value as it's gonna be calculated going forward, predictions from a firm we engage policy analytics, showing that our net assessed valuation will be dropping. Biggest impact in 2027. Also mentioned that education, printable material, cash balance, you have a percentage of 19%, operations at 9%, cafeteria funds still struggling, but we're taking steps to fix that.
And I put in some information about the negative prepaid accounts in cafeteria. And just to whine a little bit, I mentioned that we got two audits going currently. That way, I think. Yeah. We have to pay for it. That's the that's the last one. So if anybody comes to the big questions, let me know. Either here later. Alright. Any questions for Tim? Move on to consent items. So tonight's consent items, item five 4.1 is minutes. Item 4.2 is personnel. And I would like to point out at this point in time that miss McKenna Love will be joining us in the well, December and definitely in January.
She'll be a new English and social studies teacher here at Gibson Southern High School. She's here this evening, and I recently learned she's also an author is my understanding. So, that's pretty exciting to be that age and author. Go ahead and join, what I consider one of the best high schools in the state of Indiana. We're excited to have her, and mister Adams is excited to have her. And, she came up to make sure that she could put a face with a name. So thank you. Alright. You're welcome. She's almost finished also. And then, addition, we'll have claims this evening. So I'd ask that those those items be approved this evening. Those are approved minutes from October 14.
I second. Oh, go ahead. Right over. So we have first, I'm saying, and then the mittens. Oh, we're gonna all consent now. Yeah. Yeah. Oh, shoot. We'll consent items as well. Okay. Okay. Again, alright. Second. Alright. So we have first and a second. Any further questions? Any discussion? No? K. All those in favor of the consent agenda, say aye. Aye. Any opposed by the same side? Motion carries. Next item is adoption of 2026 budgets advertised on Gateway, including the capital projects and transportation budget placement plans.
Assuming, and I hope you pass this, there's a four four b that everyone has to sign and indicate how they voted on it. And if you vote yes, Steve, that would be an I. I? Mark it May. But, so, anyway because I need to get that form that it posted tomorrow. I'm not from Kentucky. No. I remember what your father-in-law said you were from. Hey. Anyway, this simply reflects what approved the advertised, what was advertised. So motion to approve the adoption of the 2026 budget capital focus. Alright. There's a second.
Any questions? Comments, discussions? No. All those in favor of the adoption of '26 budget as advertised, including capital projects and transportation, bus replacement plan, say aye. Aye. And opposed? Motion carries. Thank you. Item point 5.2 is approval of the 2526 master contract that we brought to you last time for the public hearing. This is the agreement between the teachers association and corporation. We'll need all of your signatures once passed, and then we will upload it to IRB as required by state statute, by the deadline that's required.
I think it's November 15. So, like, once again, I would say it was a good process between us and teachers association, and, we recommend that you approve the master contract this evening. I'll make a motion that we approve the contract as presumed. So I'll second it. Oh, go ahead. Okay, Eric. Who's your second? First and second. First and second. Any other discussion on the contract? All those in favor, say aye. Aye. Opposed? Motion carries. Contracts approved. Item five five point three is the approval and recommendation of support administrative salary and wage increases effective 07/01/2025 to mirror the master contract.
On average, it's 2% for our support staff. The administrative staff gets the same increase as the teachers, which is a little bit lower percentage than 2%, which is standard for us. And, we feel like that's a very fair, offer in the in the times that we're in, so we'd ask that you approve those raises this evening. And we do play net, retro's November 7 if at all possible, so they'll get their money pretty quickly. That's good. For us to approve the recommended support of mastery of salary and wage increases. I'll second. Alright. We have first and second. Any comments or discussions on the administrative increases?
No. All those in favor, say aye. Aye. Opposed? Alright. No security. Next item would be approved the transfer of $424,000 from education operations for expenses for July and August. I move that we approve the transfer from education to operations of $4,425,000. One second. First and second. Any comments, discussion items for the transfer? No. K. All those in favor, say aye. Aye. Opposed? Motion carries. The suggestion I have I wanna rank for is years ago, the corporation set up
a rainy day fund, and the, motion that set it up basically said any legal expense of the corporation will be spent from there. So you're covered on whatever we put in there to really come out towards anything else. But our intent on this is to start establishing a fund that we can self insure for our deductibles, property and casualty. Well, the idea is once it gets to the high enough point, then if something else happens, god forbid, happens, we have it for that too. But what I was looking at, you know, I think what was what was recommended
to us by smarter people than I in this realm was about $500,000. We would do that over time. Obviously, we recommend just stop it at once. I just wanna let you know what we're doing. So in the future, maybe next year, maybe next month, you know, at different times, we'll bring things up very similar to transfer from education operations. This would be from operations too. Tim, how much do we need to self insure a deductible? About 500,000. Is that for all buildings if something happened, or is that for? That's enough to cover one building if something major happened to that one building.
Is that a percentage basis, or is there a set amount? That's an amount that, covers most of the high school, and then the other buildings, not quite as much. The idea being the high school is a central one. The other ones in a sense have backup because it doesn't have to go into all. In theory, we could go to another KA building. Mhmm. But all this is really in flux. It because next year, the percentage will probably change. We'll change the amount. The deductibles were rather high. In the deductible based on deductibles and our reinsurance. Oh, do you know several company, for instance, one of our sister corporations, they got
a call from their property and cash that we won't insure you anymore. Period. And so they were able to cobble together something with multiple vendors, but then another company came in to the rescue. It's much it's a larger corporation. That's but insurance companies don't like it when your buildings are close, especially in Southern Indiana with the potential for, earthquakes and windstorms slash tornadoes. So this is our attempt to try to step that up and re maintain some of the cash ourselves.
I was only asking because, I mean, the roof replacement on this alone is 3,000,000. I didn't know what the percent But see this we would just be trying to cover deductibles. Okay. Not not the we're not No. I didn't know what the percent is. I can't remember what the percent is off the top of my head, but not really. I gotta look that up and tell you later. There's no action to be taken. It's just an FYI. So it would come from similar to the, transfer of the education expense from operations. Yeah. The the plan would be as a as a year goes by, we'll be bringing our leader in operations to put aside.
Because any of any of those costs would come from operations. And when we do property and casualty insurance, for instance, it comes from mom's son. It's just kinda put in a different bucket. Different bucket is a great way to think of it. Because in the past, we usually kept it as a, just in the fund balance. But I think there's a a lot of advantages as we move into the future, especially in 2027. We might needing to pull down different funds from different buckets, not knowing exactly what
the future direction of the legislators would be what comes with property taxes. Any other discussion items? Thanks, Tim. I was just trying to figure out why the the $500,000 is the mark. So Talk talk to some experts and maybe that's what they recommended. I need the motion to adjourn. I was gonna say, is there any discussion as the board wants to bring it on? Oh, sorry. Who wants to bring up the jargon? He's gone. We have a motion night for adjournment. A thirty one second. Sorry. Thanks, Parker. All set. First and second. All those there and adjourn. Alright. Alright. Dean is adjourned.
And we don't have another we got one meeting in November. Okay. You cancel one and then you put it right back on.