* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:09] GOOD AFTERNOON. I [Call to Order ] CALL THIS, UH, MARCH 24, SPECIAL MEETING OF THE BUDGET, UH, WORK SESSION. TO ORDER. ROLL CALL, PLEASE. MR. ROY? YES. MRS. NOLL? YES. HERE. MR. DRURY. PRESENT. MR. ROH? HERE, MR. SHEPHERD. MR. CHAIRMAN, YOU HAVE A QUORUM. THANK YOU. I JUST WANTED TO START BY FIRST INVITING AND, AND, AND THANKING THE, UH, SCHOOL ADMINISTRATION AND, AND POSSIBLY SOME BOARD MEMBERS FOR ATTENDING TODAY. I THOUGHT THIS MORNING WAS A WONDERFUL, UH, KICKOFF TO THE DAY WITH, UH, CONGRESSMAN WHITMAN, UH, PROVIDING A CHECK FOR THE, UH, IMPROVEMENTS THAT WE PLAN AT, UH, BETHEL MANOR, UH, ELEMENTARY SCHOOL, UH, 3.2 MILLION. AND I THINK ZORN STILL HAS THAT CHECK IN HIS HAND. HE WOULDN'T LET GO OF IT. UM, AND JUST, UH, ONE FURTHER ACKNOWLEDGEMENT. I'D LIKE TO, UH, CONGRATULATE, UH, DR. CARROLL ON HIS RECENT APPOINTMENT AS, UH, SUPERINTENDENT. SO THANK YOU. THANK YOU, CHAIRMAN. THANK YOU. I BELIEVE AT THIS POINT, I'M TURNING IT OVER TO [1.* School Division Budget Update] YOU FOR, UH, THE PRESENTATION. ALRIGHT. THANK YOU CHAIRMAN AND MEMBERS OF THE BOARD. THANK YOU FOR HAVING US IN. UH, WE'RE HERE TO TALK ABOUT WHAT OUR OPERATING BUDGET LOOKS LIKE FOR NEXT YEAR. UH, WE'LL, WE'LL TALK ABOUT THAT FIRST. THAT'LL BE LARGELY BASED ON MY PRESENTATION TO OUR BOARD IN FEBRUARY, MAKING THE SUPERINTENDENT'S, UH, PROPOSAL AS OF LAST NIGHT. IT'S NOW THE SCHOOL BOARD'S, UH, PROPOSED BUDGET, UH, BY VOTE. AND, UH, WHEN WE GET DONE WITH THAT PIECE OF IT, WE CAN STOP, TAKE SOME QUESTIONS AND ANSWERS, AND THEN WE WILL CONTINUE WITH GIVING YOU AN UPDATE ON THE TAB HIGH SCHOOL PROJECT, GIVING THE PROGRESS WE'VE, WE'VE MADE TO DATE. SO, UH, FIRST OF ALL, I'D LIKE TO, UH, BEGIN BY REMINDING EVERYONE OF THE CORE VALUES THAT WE HAVE IN YCSD. THESE SERVE AS OUR FUNDAMENTAL COMMITMENT TO SERVE OUR COMMUNITY WITH EXCELLENCE. THESE VALUES, INTEGRITY, ENGAGEMENT, GROWTH, INNOVATION AND SAFETY, SUPPORT THE PLANNING, DECISION MAKING, AND WORK RESPONSIBILITIES OF OUR ORGANIZATION. ADDITIONALLY, I'D LIKE TO THANK, UH, I'D LIKE TO TALK ABOUT MY VALUES AND BELIEFS ABOUT, AND THE IMPORTANCE OF A WELL EXECUTED PUBLIC EDUCATION. PUBLIC EDUCATION IS VITAL TO THE AMERICAN EXPERIENCE. IT IS INTEGRAL TO, AND IT UNDERGIRDS THE TWO MAJOR SYSTEMS WE LIVE WITHIN DEMOCRACY AND CAPITALISM. A WELL-EDUCATED POPULACE IS NECESSARY TO CREATE THE CONTINUUM OF CIVIC INVOLVEMENT ALL THE WAY THAT STARTS FROM BEING JUST A MEMBER OF A WELL-INFORMED ELECTORATE ALL THE WAY TO AN ELECTED STATESMAN LIKE WE SAW THIS MORNING. UH, AND MR. WHITMAN ALSO WELL-EDUCATED AND PREPARED STUDENTS CONTRIBUTE TO THE ECONOMIC PRODUCTION OF A COMMUNITY AND THE NATION AS A WHOLE, AS WELL AS POSITIONING THEMSELVES FOR PERSONAL FINANCIAL SUCCESS AND INDEPENDENCE. SO, PUBLIC SCHOOLS ARE ECONOMIC ENGINES FOR THEIR COMMUNITIES, PRODUCING STUDENTS THAT WON, ENLIST IN THE MILITARY, ENROLL IN HIGHER EDUCATION, OR GO DIRECTLY INTO EMPLOYMENT. THEREFORE, EVERY DOLLAR SPENT ON PUBLIC EDUCATION IS AN INVESTMENT IN BOTH OUR CIVIC AND ECONOMIC SYSTEMS TO KEEP THEM HEALTHY. AND IT IS OUR JOB TO BE GOOD STEWARDS OF THOSE TAXPAYER FUNDS THAT MAKE THAT INVESTMENT POSSIBLE. NOW, WE RECOGNIZE THAT, UH, GIVEN THE POPULATION OF YOUR COUNTY, A MAJORITY OF WHICH OF THOSE HOUSEHOLDS DON'T HAVE SCHOOL AGE CHILDREN IN THEIR HOME. THERE NEEDS TO BE AN UNDERSTANDING THAT THE SCHOOL HOUSE NO LONGER RESEMBLES WHAT MANY RESIDENTS REMEMBER FROM THEIR DAYS AS STUDENTS. THE PICTURE UP THERE IS AN ACTUAL YORK HIGH SCHOOL , UM, PICTURE IN THE 1950S AND SIXTIES PUBLIC EDUCATION CENTER ALMOST ENTIRELY ON THE THREE S. AND THE MATERIALS WERE ALMOST ALL PAPER-BASED. THE CURRICULUM WAS NARROW. INSTRUCTION WAS ONE SIZE FITS ALL, AND THE EXPECTATIONS PLACED ON SCHOOLS WERE NARROW AND ACADEMIC. NOW, TODAY'S EDUCATIONAL LANDSCAPE IS FAR MORE COMPLEX, DEMANDING, AND HELD ACCOUNTABLE. SCHOOLS OPERATE IN AN ENTIRELY DIFFERENT WORLD. SO WHILE THERE ARE THOSE WHO MIGHT SAY WE SHOULD ONLY TEACH THE BASICS, EMPLOYERS AND OUR PARENTS EXPECT MORE, THEY EXPECT AND NEED GRADUATES WHO HAVE DEVELOPED CRITICAL THINKING, COMMUNICATION, COLLABORATION, CREATIVITY, AND CIVIC RESPONSIBILITY. ALL ELEMENTS OUTLINED IN VIRGINIA'S PROFILE OF A GRADUATE MODERN CURRICULUM SPANS STEM WORLD LANGUAGES, CTE, FINE ARTS, DIGITAL LITERACY, FINANCIAL LITERACY, AND SPECIALIZED PATHWAYS THAT PREPARE STUDENTS FOR A GLOBAL TECHNOLOGY DRIVEN ECONOMY. AND CRITICALLY, TODAY'S SCHOOLS MUST ALSO MEET STATE REQUIREMENTS THAT DID NOT EXIST IN PRIOR GENERATIONS. AT THE SAME TIME, THE RESPONSIBILITIES [00:05:01] PLACED ON PUBLIC SCHOOLS HAVE EXPANDED DRAMATICALLY, STARTING WITH INFRASTRUCTURE AND STAFFING TO ADDRESS SAFETY AND SECURITY. BUT SCHOOLS ALSO NOW SUPPORT MENTAL HEALTH AND WELLBEING, GROWING ENGLISH LEARNER AND SPECIAL EDUCATION POPULATIONS, STUDENTS EXPERIENCING HOUSING INSTABILITY, BEHAVIORAL AND TRAUMA-INFORMED SUPPORTS, AND A WIDE ARRAY OF FAMILY SERVICES THAT SIMPLY DID NOT EXIST OR WERE IGNORED IN EARLIER DECADES. THIS EXPANDED MANDATE, ALONG WITH THE STAFF AND TOOLS AND TECHNOLOGY REQUIRED TO MEET IT MUST BE REFLECTED IN OUR INVESTMENT DECISIONS. AND IN THAT ENVIRONMENT, OUR INCREASED EX OF INCREASED EXPECTATION AND ACCOUNTABILITY. ACCOUNTABILITY. WHY CSD HAS THRIVED ALL OF OUR SCHOOLS REMAIN FULLY ACCREDITED AND ALL EARNED RATINGS HAVE DISTINGUISHED OR ON TRACK ON THE NEW STATE SYSTEM MAKING YCSD THE ONLY SCHOOL DIVISION IN REGION TWO, TO HAVE ALL SCHOOLS MEETING OR EXCEEDING EXPECTATIONS. WE ALSO ENJOY THIRD PARTY RECOGNITION OF EXCELLENCE IN OUR NICHE AND US NEWS RATINGS, AS WELL AS RECEIVING OUR THIRD BLUE RIBBON IN AS MANY YEARS. AND WE ARE NOW ENJOYING OUR FOURTH YEAR AS A PURPLE STAR DIVISION. SO, BOARD MEMBERS AT OUR NOVEMBER REGULAR BOARD ME MEETING, I SHARED DURING MY SUPERINTENDENT'S REPORT SOME GRAPHS THAT ILLUSTRATED OUR ACADEMIC PERFORMANCE AS A SCHOOL SYSTEM AND HOW WE EXCEEDED THIRD PARTY ORGANIZATIONS EXPECTATIONS BASED ON BOTH OUR SOCIOECONOMIC AND LEVELS AND BASED ON OUR FUNDING. I'D LIKE TO SHARE WITH YOU THIS SCATTER PLOT. NOW, THIS IS, UH, A MEASUREMENT OF OUR FOURTH GRADE READING PERFORMANCE AGAINST OUR FUNDING AS A SCHOOL, UH, FOR THOSE SCHOOLS. BUT THIS IS INDICATIVE OF THE PERFORMANCE THAT WE HAVE ACROSS THE DIVISION. NOW YOU SEE, UH, AN INTERSECTION, A VERTICAL AND HORIZONTAL AXIS, AND THAT'S THE AVERAGE FOR THE ELEMENTARY SCHOOLS IN OUR SCHOOL DIVISION. AND THE ONLY THING THAT I'VE ADDED TO THIS IS THE RED DOT, AND THAT'S THE INTERSECTION OF THE AVERAGE STATE SCHOOL FUNDING AND THE AVERAGE STATE PERFORMANCE. HMM. WHAT YOU'RE LOOKING FOR IS BEING HIGHER AND LEFT OF THAT RED DOT INDICATING SIGNIFICANTLY BETTER PERFORMANCE AT OUR LOWER COST. SO WHEN YOU LOOK AT THIS GRAPH, IT IS UNDENIABLE, GIVEN OUR PLACEMENT THAT WE ARE DOING IT BETTER AND FOR FAR LESS THAN THE REST OF THE STATE. I ALSO STATED THAT NIGHT THAT WE WOULD ONLY BE FORWARDING NEW BUDGET ITEMS THAT WERE MANDATED OR INVEST IN OUR STAFF THROUGH COMPENSATION AND TRAINING, OR OUR STUDENTS THROUGH ENHANCED PROGRAMMING OR STAFF POSITIONS THAT CAN ADVANCE US IN IMPROVING THEIR EDUCATIONAL EXPERIENCE, WHICH DOT WAS YORK COUNTY. IF YOU'LL GO BACK, YOU SEE THE COLOR GREEN AND YELLOW CIRCLES. MM-HMM . ALL OF THOSE, THOSE CENTER AROUND THAT, THAT THE INTERSECTION THERE IN THE TOP LEFT, THAT'S OUR AVERAGE. SEE THE, THE, UH, THE HIGHLIGHTED VERTICAL AND HORIZONTAL AXIS. MM-HMM . SO WHERE THOSE MEET IS OUR AVERAGE, THE RED.IS THE STATE AT AVERAGE. WHAT DOES EACH CIRCLE REPRESENT? EVERY CIRCLE YOU SEE, THERE IS AN ELEMENTARY SCHOOL IN THIS STATE, IN THIS STATE, IN THE GREEN AND YELLOW ELEMENTARY SCHOOL IN THIS STATE. OKAY. RIGHT. AND THE GREEN AND YELLOW THAT ARE HIGHLIGHTED WHERE YOU SEE THE ACTUAL COLOR, THOSE ARE THE EL UH, ELEMENTARY SCHOOLS OF YORK COUNTY SCHOOL. OKAY. AND, AND SOME CIRCLES ARE BIGGER THAN OTHERS, THAT AN THAT SCHOOL SIZE, THE SIZE OF THE SCHOOL. YES. OKAY. AND WHAT'S THE DIFFERENCE BETWEEN GREEN AND YELLOW? UH, GREEN IS, UH, SOCIOECONOMIC. OKAY. FOR THOSE THAT WOULD SAY THAT WE WASTE TAX DOLLARS, I WOULD REMIND THEM THAT WE EXIST PERMANENTLY UNDER CONSTRAINED FUNDING. THAT CAUSES A CONSTANT ECONOMIC EFFICIENCY DEMAND THAT PROMPTS US TO CONTINUOUSLY EVALUATE WHETHER WE'RE GETTING THE MOST OUT OF OUR RESOURCES. YOU'LL SEE A FEW EXAMPLES OF THAT TODAY. I'LL BE THE FIRST TO SAY OUR STATE FUNDING IS NOT ADEQUATE, AND I'LL PROVIDE SPECIFIC EXAMPLES LATER IN THE PRESENTATION. AND AN UNFAIR SHARE IS DEFINITELY PLACED ON LOCALITIES. HOWEVER, AT THE SAME TIME, PART OF THE STATE FUNDING FORMULA SETS EXPECTATIONS AND RELIES ON LOCALITIES TO CONTRIBUTE. PART OF TODAY'S PRESENTATION ALSO ADDRESSES PRACTICES OF THE PAST WHERE WE'VE HAD TO SOLELY OR OVERLY RELY ON END OF YEAR FUNDING TO PURCHASE NECESSITIES. MM-HMM. SUCH AS TEXTBOOKS, BUSES, TECHNOLOGY, INFRASTRUCTURE, AND BUILDING MAINTENANCE. I THINK WE ALL AGREE THAT THESE IMPORTANT COMPONENTS, UH, ARE SO IMPORTANT TO OUR PERFORMANCE, THAT THE FUNDING FOR THESE NEEDS TO BE PROVIDED FOR IN A STABLE AND PREDICTABLE MANNER. NOW, QUESTIONS WE ASK DURING THIS PROCESS INCLUDE, WILL ADDITIONAL POSITIONS OR FUNDS IMPROVE [00:10:01] THE CHANCES FOR BETTER READING, MATH OR ATTENDANCE OUTCOMES? AND YOU'LL SEE SOME NEW POINTS OF FOCUS THERE, UH, TODAY. AND WE ASKED THE QUESTION, IS THERE A BETTER WAY TO UTILIZE POSITIONS OR REPURPOSE THOSE ALREADY APPROVED FUNDS? YOU'LL SEE SOME OF THAT TODAY. AND DURING THE PROCESS, WE ALSO PLAN WORKFORCE REORGANIZATION TO REPURPOSE POSITIONS AND CONSOLIDATE SOFTWARE PLATFORMS. SO AT THIS POINT, I'M GONNA TURN IT OVER TO MR. BOWEN, OUR CHIEF FINANCIAL OFFICER. TALK A LITTLE BIT ABOUT PER PUPIL EXPENDITURES. DR. BEFORE YOU DO THAT, SIR, COULD YOU JUST EXPLAIN WHAT REGION TWO IS? REGION TWO IS, UH, THE STATE IS ORGANIZED IN DIFFERENT REGIONS. UH, GOSH, I I THINK THERE'S 18 SCHOOLS IN REGION TWO, SOUTHEAST EDGE OF, OF VIRGINIA SPANNING EVERYWHERE FROM, I THINK WGCC IS THE FARTHEST NORTH, UH, DOWN TO LIKE SUFFOLK AND ISLE WHITE AND, AND THOSE ALL THROUGH. AND EASTERN SHORE. EASTERN SHORE. I HAVE THAT IN THE LATER, SO. OKAY. OH, THAT'S RIGHT. SO, UH, DR. DR. CARROLL TALKED A LITTLE BIT ABOUT PER PUPIL EXPENDITURES AND, AND THE RESULTS. I WANTED TO FOCUS A LITTLE BIT ON, UH, JUST THE PER PUPIL EXPENDITURES. UM, THIS IS IMPORTANT BECAUSE IT HELPS FRAME THE BUDGET CONVERSATION, UH, NOT JUST IN TERMS OF HOW MUCH WE'RE ASKING FOR, UH, FROM THE STATE AND HOW MUCH WE ADVOCATE FROM THE STATE AND FROM THE COUNTY, BUT HOW EFFICIENTLY YORK COUNTY SCHOOL DIVISION OPERATES COMPARED TO OUR REGIONAL AND STATEWIDE PEERS. SO ON THIS SLIDE HERE, YOU'LL SEE THESE ARE THE, UH, COMPARATORS THAT WE REGULARLY COMPARE OURSELVES TO WHEN IT COMES TO TESTING AND FUNDING. THERE'S NINE SCHOOL DIVISIONS, INCLUDING YORK COUNTY, AND YOU CAN SEE HERE THAT WE'RE NINE OUT OF NINE AS FAR AS PER PUPIL EXPENSES, WHAT IS THE NUMBERS? DOLLARS OR WHAT THIS IS THE NUMBER OF DOLLARS PER PUPIL. OKAY. THIS INFORMATION COMES FROM THE ANNUAL SCHOOL REPORTS THAT EVERY SCHOOL DIVISION REPORTS TO THE DEPARTMENT OF EDUCATION. AND SO BETWEEN THE HIGHEST OF NEWPORT NEWS IN YORK COUNTY, THERE'S ABOUT A $4,300 DIFFERENCE PER STUDENT IN FUNDING. DR. DR. CARROLL MENTIONED. UH, ONE OF OUR POINTS OF PRIDE, OF COURSE, IS THE NICHE RATINGS. UM, WHAT MAKES THIS PARTICULARLY COMPELLING IS THE FUNDING COMPARISON FALLS CHURCH IN ARLINGTON RANKED SE SECOND AND THIRD, BUT THEY SPEND APPROXIMATELY 10 TO $11,000 AND MORE PER PUPIL. THIS JUST GOES TO REINFORCE THAT YCSD DELIVERS EXCEPTIONAL OUTCOMES WITH SIGNIFICANTLY FEWER RESOURCES, AND THAT EFFICIENCY IS CENTRAL TO EVERY P DECISION. WE DO YOU THINK THERE'S SOME ISSUE OR SOME WAY THAT, UH, BY JUST THE, THE, THE SCALE IS DRIVING THE COST UP? I MEAN, IT JUST, THEY, THEY, I MEAN, OUR SCHOOL SYSTEM'S ONLY, WHAT, 13,000 STUDENTS. SO, AND THEN SOME OF THIS, SOME OF 'EM UP THERE ARE 28, 30,000 IF NOT MORE. CER CERTAINLY THE LOCATION HAS AN IMPACT ON THAT. AND YOU CAN SEE IT FROM THIS, UH, SLIDE HERE. MM-HMM . THIS IS, UM, THIS SLIDE SHOWS ALL 131 SCHOOL DIVISIONS HIGHLIGHTED HERE IN BLUE. UM, ARE THE THREE IN THE NICHE RATINGS. YOU CAN SEE ARLINGTON AND FALLS CHURCH TO THE TOP LEFT. MM-HMM . UM, AT CLOSE TO THE TOP OF THE STATE AND SPENDING, AND THEN YORK COUNTY ALL THE WAY TO THE RIGHT WE'RE 109 OUT OF 131 SCHOOL DIVISIONS. THOSE SCHOOL DIVISIONS HIGHLIGHTED IN HUNDRED NINTH. WHAT, OUT OF, OUT OF 131 SCHOOL DIVISIONS. HUNDRED NINTH IN IN PER PUPIL SPENDING. PER PUPIL. OKAY. AND, UM, SO WHAT WE'RE SEEING IN THE YELLOW, THOSE ARE ALL THE SCHOOL DIVISIONS THAT ARE IN REGION TWO ALONG WITH YORK COUNTY. AND THEN IN THE SECOND COLUMN, A LITTLE MORE MIDWAY DOWN, YOU SEE THE GREEN, THAT'S THE STATE AVERAGE. AND ON THE STATE AVERAGE, WE'RE ABOUT 28, 20 $800 LESS PER PUPIL, UH, AVERAGE PER PUPIL EXPENDITURE, UM, HERE IN YORK COUNTY. SO, MR. BOWEN, I'D LIKE TO INTERRUPT HERE AND JUST, JUST FOR ILLUSTRATIVE, UH, PURPOSES HERE. SO LIKE YOU'RE SAYING, YOU'RE TALKING ABOUT A LOT OF DIVISIONS THAT ARE UP THERE THAT ARE LARGER AND IN NORTHERN VIRGINIA, BUT SOMEONE WHO IS MORE SIMILAR TO US, WILLIAMSBURG, JAMES CITY, LET'S SAY, NOT TO PICK ON THEM, BUT, UH, THAT DIFFERENCE IS $998 PER STUDENT. YES. SO LET'S JUST TALK ABOUT WHAT THAT WOULD MEAN FOR US. SO IF YOU, UH, FOR EASY MATH, THAT'S A THOUSAND DOLLARS A STUDENT. SO A THOUSAND TIMES 13,000 STUDENTS, THAT'S $13 MILLION A YEAR. MORE PROPORTIONALLY THEY GET, NOW WE'RE TALKING FEDERAL, STATE, AND LOCAL FUNDING. WE'RE TALKING ABOUT THE WHOLE PICTURE. AND I WOULD NEVER SAY WE, WE SHOULD HAVE $13 MILLION MORE, BUT WHEN WE TALK ABOUT THE, UH, YOU KNOW, THE SHORTCOMING OF OUR, OR ALWAYS BEING UNDER A CONSTRAINED STATUS, WE'RE TALKING ABOUT IF WE HAD 13 MORE MILLION DOLLARS OR A FRACTION OF THAT ON A YEAR TO YEAR BASIS, THAT BUILDS UP, THAT HAS A CUMULATIVE EFFECT. AND SO THAT IS THE DIFFERENCE BETWEEN THEIR FUNDING AND OURS IS THE, IS THE COMPARISON AS IF WE HAD 13 MORE MILLION DOLLARS EVERY YEAR, YET YOUR PERFORMANCE IS SO MUCH BETTER. THAT'S TRUE. AND IT, SO MONEY IS NOT EVERYTHING ON THAT. YEAH, BUT WHAT'S, AND IT'S A GOOD POINT BECAUSE IT DOESN'T REALLY TELL US WHY. I MEAN, WE [00:15:01] HAVE A, I THINK YOUR COUNTY'S PROBABLY, IF NOT ONE OF THE NUMBER ONE OR NUMBER TWO, SOMEWHERE IN THERE. MM-HMM . A NUMBER OF, UH, FEDERAL EMPLOYEES, MILITARY, UH, MILITARY RETIREES, ACTIVE DUTY, THINGS LIKE THAT. UM, AND WE KNOW A LOT OF PEOPLE THAT WORK IN THE NAVY, WHICH IS THE LARGEST COMPONENT OF THE MILITARY, UM, IN HAMPTON ROADS, UH, WORK ON ONE SIDE THAT LIVE OVER HERE FOR THE SCHOOLS. UM, WHAT'S, WHAT, CAN I DRAW ANY PARALLELS? CAN I SAY THIS BECAUSE WE GOT A LOT OF MILITARY, A LOT OF FEDERAL EMPLOYEES WORKING, UH, THAT ARE INVOLVED, UH, EITHER RETIREES OR WHAT, THAT THEY'RE HERE IN YOUR COUNTY. AND AS A RESULT, THERE'S, I DON'T KNOW, SOME ASPECT OF THAT THAT'S CAUSING, UH, OUR EFFICIENCY. I MEAN, I, THAT'S THE ONE THING THAT'S NEVER CLEAR IS WHAT'S CAUSING IT. HAVE WE JUST GOT THE RIGHT PEOPLE? I MEAN, WHAT IS THE, WHAT'S THE ANSWER HERE? EFFICIENCY OR PERFORMANCE? WELL, OKAY, THAT NUMBER EFFICIENCY COMES YOU ALL, WELL, I MEAN, THAT NUMBER IS YOUR, IS YOUR FUNDING PER STUDENT. SO THAT COMES FROM JUST ADDING UP THE WHAT COMES TO US FROM FEDERAL, STATE, AND LOCAL. WELL, THAT'S JUST ADDING UP THE NUMBER, BUT IT COST IS LOWER. AND WHAT'S DRIVING IT LOWER? WHAT DRIVES IT? SEE, THAT'S THE ONE ASPECT THAT'S NEVER CLEAR TO ME ALL THESE YEARS IS WHAT DRIVES IT LOWER, WHAT DRIVES THAT COST LOWER? I MEAN, ARE OUR EMPLOYEES, UH, WILLING TO WORK FOR THAT MUCH LESS MONEY? OR IS IT BECAUSE THEY LIKE THE ENVIRONMENT? OR IS IT BECAUSE WE GOT MORE EMPLOYEE, MORE FEDERAL EMPLOYEES, OR WE GOT SOMETHING GOING ON OVER HERE, WHAT'S GOING ON HERE THAT'S NOT GOING ON SOMEWHERE ELSE? THAT THEY HAVE TO SPEND $13 MILLION MORE THE, UH, NOT EVEN GET, NOT EVEN GET THE SAME LEVEL OF EDUCATION. SO I THINK IT'S A COMBINATION OF THINGS. UM, SO LIKE WE LOOK AT SURY, UM, VERY SMALL SCHOOL DIVISION. THEY'RE NUMBER ONE IN THE STATE. THAT'S CRAZY TO ME. SO YOU, YOU HAVE TO LOOK AT THE DYNAMICS OF THE, OF THE DIVISION. THERE MIGHT BE A HIGHER ECONOMIC DISADVANTAGE POPULATION WHERE THEY GET, THEY RECEIVE MORE STATE AND AND FEDERAL FUNDING. MM-HMM . UM, THEIR COUNTIES ARE RATHER LARGE COUNTY. SO THE TRANSPORTATION COSTS ARE MORE, UH, COSTLY TO GO FROM ONE END OF THE COUNTY TO THE NEXT END OF THE COUNTY. SO THERE'S, THERE'S A LOT OF DIFFERENT THINGS. UM, I WOULD SAY IT'S A COMBINATION. IT'S OUR STAFF. IT'S THE SUPPORT FROM, UH, THE COUNTY, THE INVESTMENT OF OUR FAMILIES. WE HAVE A HIGHLY ENGAGED, UH, FAMILY, UH MM-HMM. UH, POPULATION HERE IN YORK COUNTY, MORE SO THAN THE OTHER TWO SCHOOL DIVISIONS THAT I'VE WORKED IN. SO, UH, I WOULD SAY IT'S A, IT'S A, IT'S A NUMBER OF THINGS THAT CONTRIBUTE TO THIS. WHAT, WHAT IS YOUR, WHAT IS YOUR TOP THREE COST DRIVERS? LABOR, UH, PERSONNEL BENEFITS, UM, AND THE CHANGES IN STATE, UH, STANDARDS. JUST WHATEVER THAT HAPPENS TO BE AT THE TIME. UM, SO THAT PURCHASE A NEW MATERIAL. YEAH. SO, UM, THIS COMING UP YEAR, WE HAVE ABOUT A $3 MILLION, UM, PRICE TAG ON TEXTBOOKS. AND THIS IS BECAUSE OF CHANGING MASS STANDARDS. AND SO THAT, THAT'S RIGHT NOW GONNA BE A BIG DRIVER, BUDGET DRIVER FOR US. UM, IN PREVIOUS YEARS, IT WAS THE READING STANDARDS. AND SO THE STATE PROVIDED US WITH A LITTLE OVER $3 MILLION AT ONE TIME FUNDING. THEY GAVE US THREE YEARS TO SPEND IT. AND SO THAT WAS, THAT WAS THE DRIVER FOR US. AND WE HAD TO, WE USED THOSE FUNDS TO PROVIDE ADDITIONAL SUPPORTS FOR OUR STUDENTS WHO WERE IN READING RECOVERY. AND, UM, AND THAT HELPED US IN OUR TEST SCORES. AND OUR, OUR, OUR TEAM OF INSTRUCTION DID A PHENOMENAL JOB. WE HIRED SOME READING SPECIALISTS, WE HIRED SOME MATH GOVERNMENT, SOME READING COACHES, AND THE RESULTS WERE PHENOMENAL. AND SO WE'LL TALK A LITTLE BIT ABOUT HOW WE'VE TAKEN SOME OF THE NEW MONEY THIS YEAR, AND WE'VE MOVED THOSE POSITIONS OUT OF THAT ONE TIME MONEY INTO, INTO THE BUDGET FOR THIS YEAR. SO STAFFING IS ONE OF YOUR BIG, IT'S ABOUT 80 TO 82% OF OUR BUDGET. OKAY. SO STAFFING IS AND STAFFING. UM, CLASSROOM MATERIAL, WE'LL CALL IT BOOKS OR WHATEVER THE CASE MAY BE. WHAT, WHAT, WHAT, WHAT'S ANOTHER ONE THAT'S ONE OF YOUR BIGGEST DRIVERS? TRANSPORTATION MISSED? I THINK THE NEXT SLIDE OR THE TWO SLIDES FROM NOW, WE'RE GONNA GET TO OUR BUDGET DRIVERS. OKAY. AND REAL QUICK, CAN YOU SPEAK TO SCHOOL STAFFING? 'CAUSE I THINK A LOT OF PEOPLE, WHEN THEY THINK SCHOOL STAFFING, THEY THINK THE TEACHER ENVIRONMENT. BUT EVERYBODY, YOU'RE MUCH MORE EXPANSIVE THAN THAT. CAN YOU SPEND 30 SECONDS AND EXPLAINING EVERYBODY? SCHOOL STAFF CONSISTS OF SCHOOL STAFF CONSISTS OF ABOUT A THOUSAND TEACHERS. UM, AND IN, AND A HOST OF SUPPORT STAFF. WE HAVE OVER, I'D SAY 125 BUS DRIVERS. WE HAVE BUS ASSISTANTS. THOSE ASSISTANTS RIDE WITH OUR SPECIAL EDUCATION, UH, STUDENTS. WE HAVE CUSTODIANS, WE HAVE MAINTENANCE WORKERS, WE HAVE PLUMBERS, PARAEDUCATORS, WE HAVE PARAEDUCATORS. SO THOSE ARE IN THE CLASSROOMS. MM-HMM . TO SUPPORT OUR KINDERGARTEN CLASSES, BUT ALSO TO SUPPORT OUR SPECIAL EDUCATION CLASSES. WE HAVE, UM, SUPPORT STAFF. WE HAVE A FINANCE TEAM, WE HAVE AN HR TEAM. WE HAVE AN INSTRUCTIONAL SUPPORT TEAM. UM, WE HAVE A, WHAT'S CALLED STUDENT SERVICES THAT, UH, LARGELY, UM, SUPPORTS OUR STUDENTS, UM, AND DISCIPLINE MCKINNEY-VENTO STUDENTS, [00:20:01] UM, SUPPORT THE ADMINISTRATORS IN THE BUILDING WITH THOSE, WITH THOSE ISSUES. UM, IT STAFF AND IT STAFF COUNSELORS, SCHOOL PSYCHOLOGISTS, SOCIAL WORKERS, HEALTH. WE HAVE SPEECH PATHOLOGISTS. WE HAVE, UH, AS OCCUPATIONAL THERAPY. I, I THINK WHAT YOU'RE ASKING MAYBE IS WHAT IS THE TOTAL COMPLIMENT OF WORKERS THAT YOU HAVE OF 1800? 1800? THAT THAT'S ALL INCLUSIVE. YEAH. WELL, IT DOESN'T INCLUDE OUR, UH, SUBSTITUTES. WE HAVE ABOUT THREE TO FOUR, THREE TO 400 SUBSTITUTES. BUT THAT, THAT'S INCLUDE THE BUS DRIVERS. YES. YES. OKAY. . BUT AGAIN, I JUST WANT TO ILLUSTRATE THAT IT'S, WHEN YOU THINK IT, WHEN YOU TALK SCHOOL DIVISION, IT'S MORE THAN JUST WHEN YOU STAFF, IT'S MORE THAN JUST TEACHERS. IT'S ABOUT 800. IT'S ALMOST TWICE AS MANY. UH, 80% MORE, UM, PERSONNEL BEYOND JUST TEACHERS IN, UNDER YOUR EMPLOYMENT. ONPRO, WE HIRE BETWEEN 160 TO 200 NEW STAFF MEMBERS EVERY YEAR. AND WE STILL HAVE A NUMBER OF VACANT POSITIONS. SO THROUGH ALL THAT HIRING, THERE'S, YOU KNOW, THERE'S ONBOARDING, THERE'S PROFESSIONAL DEVELOPMENT, ONGOING PROFESSIONAL DEVELOPMENT FOR OUR, OUR LICENSED STAFF. MM-HMM . AND SO THERE'S A LOT OF REQUIREMENTS THAT COME WITH THE EMPLOYEE GROUPS, BUS DRIVERS AND CONTINUOUS BUS DRIVER TRAINING. RIGHT. AND ONE LAST QUESTION ON THIS NUMBER, DOES THAT INCLUDE YOUR CAPITAL? UM, IT DOES NOT. THAT'S OUR, SO THAT'S, THAT'S STRICTLY THE COST OF, I'LL CALL IT. THIS IS NOT COST OF OPERATION, THE ORGANIZATION JUST DOING BUSINESS THAT'S OPERATIONAL. THIS IS OPERATIONAL. THERE'S A COUPLE OF THINGS THAT ARE EXCLUDED. I THINK SUMMER SCHOOL, FOOD SERVICE AND CAPITAL ARE EXCLUDED FROM THIS NUMBER. OKAY. SO LEMME DIVE INTO REVENUE. UM, AND I'LL BEGIN WITH REALLY OUR PRIMARY BUDGET DRIVERS FOR STATE FUNDING. UM, I'LL TALK A LITTLE BIT ABOUT LOCAL COMPOSITE INDEX. THIS IS THE INDEX THAT'S ASSIGNED TO EACH LOCALITY, AND IT DETERMINES LOCALITY'S ABILITY TO PAY FOR THE COST OF EDUCATION. TALK ABOUT AVERAGE DAILY MEMBERSHIP. UM, THIS IS SOMEWHAT SYNONYMOUS WE'VE TALKED ABOUT ABOUT ENROLLMENT, BUT ENROLLMENT IS NOT WHAT, THIS DOES NOT MEET, UH, EQUAL AVERAGE DAILY MEMBERSHIP ENROLLMENT IS HOW MANY KIDS DO WE HAVE IN ENROLLED IN OUR SCHOOL, UH, ON A PARTICULAR DAY, AVERAGE DAILY MEMBERSHIP OR HOW IS, HOW SCHOOLS ARE FUNDED. AND IT'S, IT'S OVER A PERIOD OF TIME HOW MANY STUDENTS FROM THE BEGINNING, UH, OF, OF SCHOOL START FIRST DAY OF SCHOOL THROUGH MARCH 31ST. AND THAT'S THE STATE'S FORMULA. AND THEN ALSO CHANGES TO THE V UH, VIRGINIA RETIREMENT SYSTEM RATES. AND THESE ARE THE RATES THAT EMPLOYERS PAY ON BEHALF OF THEIR, UH, EMPLOYEES, INCLUDING THEIR PENSION, HYBRID DISABILITY GROUP LIFE AND RETIRE. GO BACK AND EXPLAIN THE COMPOSITE INDEX AND HOW IT, HOW IT OURS CHANGES. YES. I'LL, I'LL HAVE A SLIDE ON THAT. GOT THAT. OKAY. AND THEN ALSO THE STATE'S, UH, STANDARDS OF QUALITIES. THIS IS, WE OFTEN SEE THIS A MOVING TARGET EVERY GENERAL ASSEMBLY. BUT NOT ONLY THAT, ONCE THEY HAVE THE STATE STANDARDS SET, UM, AS OUR ENROLLMENT INCREASES, IT MAY BE THAT WE NEED TO HIRE ADDITIONAL STAFF. RIGHT NOW WE'RE KIND OF ON THE VERGE OF NEEDING TO HIRE ADDITIONAL ENGLISH LANGUAGE TEACHERS TO SUPPORT OUR GROWING, UM, ENGLISH LANGUAGE LEARNER THANK YOU POPULATION. AND SOMETIMES THAT IS DRIVEN BY STATE CODE, WHAT THAT RATIO HAS TO BE. SO WHEN HE SAYS ON THE VERGE, MEANING IF WE HIT A NUMBER, THEN WE HAVE TO CORRECT. SO THIS IS THE HISTORY OF LOCAL COMPOSITE INDEX. SO THIS IS FROM, UH, THIS IS NINE BIENNIUM. SO THE STATE OPERATES IN A BIENNIUM BUDGET. AND AT THE BEGINNING OF THAT BUDGET PROCESS, UM, THEY UPDATE THE LOCAL COMPOSITE INDEX FOR EACH LOCALITY. AND SO YOU CAN SEE HERE, I'LL START WITH THE SECOND TO THE LEFT. 2012 TO 2014, WE SAW A SIGNIFICANT SPIKE IN, IN THE LCI, THIS WAS A RESULT OF THE GREAT RECESSION. NOW THIS DATA TRAILS THREE YEARS. SO WHAT HAPPENED DURING THAT TIME IS THAT THE GREAT RECESSION HIT NORTHERN VIRGINIA BEFORE IT HIT THE REST OF THE STATE. AND SO THAT'S WHY WE SAW OUR NUMBERS INCREASE SIGNIFICANTLY DURING THAT TIME. BUT SINCE THEN, WE'VE SEEN A STEADY DECLINE. AND IN THE PAST THREE YEARS, WE'VE SEEN A SIGNIFICANT DECLINE. THE DIFFERENCE BETWEEN WHAT OUR PROPOSED RATE IS FOR NEXT BIENNIUM, WHICH IS 26, 28, THAT 0.3518, AND, AND WHAT IT WAS IN 20 12, 20 14, IT'S ABOUT AN EIGHT TO $9 MILLION DIFFERENCE IN FUNDING. SO STATE FUNDING SHIFTED, SHIFTED FROM THE LOCAL BURDEN TO THE STATE BURDEN. AND SO THAT, THAT'S A GREAT THING WHEN WE SEE THAT NUMBER GO DOWN. I POINT THIS OUT BECAUSE I DON'T KNOW HOW LONG THIS NUMBER'S GONNA GO DOWN, , THIS IS GONNA TURN ON US. AND I WILL TELL YOU JUST, JUST THE, THE 0.36% DIFFERENCE BETWEEN 24 26 AND 26 28, IT WAS ABOUT $485,000. IT'S JUST A VERY SMALL DIFFERENCE. BUT THAT LOCAL COMPOSITE INDEX, UH, IMPACTS ABOUT 90% OF THE FUNDING FROM THE STATE. AND, AND I THINK THAT OUR VIEWERS EXPLAIN WHAT ACTUALLY IS THE COMPOSITE INDEX AND HOW IT'S DETERMINED. SO IT'S, UM, IT'S A VERY COMPLEX FORMULA. YES. BUT IT INVOLVES, UM, THE LOCALITIES TRUE PROPERTY VALUES. THAT'S ABOUT 50% OF THE FORMULA. UM, AND THEN [00:25:01] IT TAKES ON THE WEALTH OF THE COMMUNITY. SO THAT COME, THAT INFORMATION COMES FROM THE DEPARTMENT OF TAXATION. THAT'S ABOUT 40% OF THE, THAT, OF THE, UH, FORMULA AND 10% OF THE, UH, FORMULA IS THE SALES TAX OF THE LOCALITY. AND SO ALL THAT, EACH, EACH SEGMENT IS DIVIDED BY THE AVERAGE DAILY MEMBERSHIP AT THE TIME THAT THIS, UM, CALCULATION IS DONE. AND, AND THEN IT CALCULATES A LOCAL COMPOSITE INDEX FOR EVERY LOCALITY AVERAGE DAILY IN MEMBERSHIP OF SCHOOL, OF THE SCHOOL DISTRICT. AND THEN IT DOES A STATEWIDE, UH, AVERAGE DAILY MEMBERSHIP. ALL RIGHT? SO FEED ALL THAT IN THE ALGORITHM. AND FOR 26, 28 0.3518 OFF OFFSET 5 1 8, THAT'S WHERE, AND THE HIGHER, THE HIGHER THE INDEX, THE MORE LOCAL PAY. YES, YES, MA'AM. RIGHT. AND THE LOWER THE INDEX, THE MORE THE STATE PAYS. SO TO PUT THIS IN PERSPECTIVE, POCOS, IT'S ABOUT 0.38. UH, NORTH HAMPTON COUNTY ON EASTERN SHORE, UM, IS OVER 5%. UH, ABOUT 50% RICHMOND OVER 50%. SO 0.358 OF, WHAT IS THAT SAYING? 35% OF SCHOOL FUNDING IN THIS CASE. SO BASED ON, SO BASED ON THE STANDARDS OF QUALITY FUNDING MODEL MM-HMM . THE STATE COMES UP WITH A TOTAL FIGURE, THIS IS WHAT IT SHOULD COST YOUR COUNTY, UM, TO EDUCATE THEIR STUDENTS. THEN THEY TAKE THIS FORMULA. SO 35% IS GONNA BE PAID BY, HAS TO BE PAID BY THE LOCALITY, 65% BY THE STATE. THAT'S JUST ABOUT EVERY LOCALITY IN THE STATE, WITH AN EXCEPTION OF A HANDFUL. I MEAN, MAINLY OUT WEST, THE VERY, VERY POOR DISTRICTS. UM, THE LOCALITIES PROVIDE FUNDING IN EXCESS OF THE MINIMUM REQUIRED. ARE THE, UH, ARE THE EXTREMES LIKE ONE END TO THE OTHER? LIKE I THINK THEY USED TO BE THAT THE LOWEST YOU COULD GO IS 20.2 AND THE HIGHEST YOU COULD GO IS 0.88 AND 20 PERCENT'S STILL THERE? YES. OKAY. AND, AND I, AND I, AND I GUESS TO DRIVE THE POINT HOME THAT YOU JUST MENTIONED, UH, YORK COUNTY PROVIDES THIS 0.35 OR 35% OF THE FUNDING IS NOT GONNA MEET YOUR NEEDS IN TOTAL BECAUSE OF STANDARDS THAT WE HAVE TO BE THE NUMBER ONE SCHOOL DISTRICT IN, IN THE STATE. THAT WOULD JUST BE 35% WOULD JUST, JUST BEGIN. JUST BE GETTING BY. OKAY. IF YOU ONLY PROVIDED THE MINIMUM, UH, WE WOULD BE CUTTING SEVERAL HUNDRED POSITIONS. YEAH. THAT RIGHT. IT, IT WOULDN'T BE GETTING BY . IT, IT, IT WOULD BE SIMILAR TO US NOT PROVIDING THE EXTRA FUNDING FOR THE SHERIFF'S OFFICE. SUDDENLY WE'D BE DOWN TWO THIRDS OF THE DEPUTIES THAT WE HAVE NOW. AND THAT WOULD BE UNACCEPTABLE, YOU KNOW, THAT. SO THAT'S, TRY TO PUT THAT INTO PERSPECTIVE. AND THAT APPLIES TO EVERYBODY, RIGHT? YEAH. SO I'M JUST TRYING TO PUT THAT INTO PERSPECTIVE. THAT'S WHAT I MEANT BY EARLIER ABOUT THE STATE IS NOT ADEQUATELY FUNDING EDUCATION. RIGHT. SO THIS IS A HISTORY OF OUR AVERAGE DAILY MEMBERSHIP. UM, I'LL JUST START WITH FY 20. WE WERE 12,914. THAT WAS THE HIGHEST WE HAD SEEN IN YOUR COUNTY AT THAT TIME. WE WERE PROJECTING IN 2021 TO TO, TO ECLIPSE THE 13,000 MARK. AND WE WERE VERY EXCITED ABOUT THAT UNTIL COVID HIT. AND WE LOST 670 STUDENTS. NOW, THE GREAT THING ABOUT THAT, UH, ABOUT WHAT HAPPENED THERE WAS THAT THE STATE HELD US HARMLESS. THEY KEPT THE FUNDING THE SAME, EVEN THOUGH WE LOST THOSE STUDENTS. AND THAT WAS, YOU KNOW, A VERY CHAOTIC TIME. UM, BUT IT'S TAKEN US FIVE YEARS TO RECOVER FROM THAT COVID LOSS. IT TOOK US UNTIL 2025 TO, WE ECLIPSE 12,985. SO IN 2026, WE ECLIPSED FOR A DM PURPOSES, 13,000 STUDENTS. WE WERE BUDGETED AT 13,051. HOWEVER, UM, WITH THE UPDATE ON THE PROJECTED NUMBER FOR THIS YEAR, WE'RE ACTUALLY 33 LESS. AND THAT'S GONNA COST US ABOUT $450,000 FOR THIS YEAR. SO WE'RE WORKING TO COVER THAT LOSS OF REVENUE. UM, THE PERCENT OF STUDENTS IN THE COUNTY DOES THAT REPRESENT. SO THAT 13,000, OBVIOUSLY THERE'S SOME THAT GO TO PRIVATE SCHOOL, SOME THAT DO HOMESCHOOLING. WHAT'S THE TOTAL NUMBER OF STUDENTS? I DON'T HAVE ANY, I DON'T HAVE THAT NUMBER. AND THAT, THAT ALSO INCLUDES SOME TUITION STUDENTS AS WELL. UM, NOT ONLY DO THEY PAY YOU TUITION, BUT WE GET THE STATE FUNDING FOR THOSE STUDENTS. AND HOW MANY OF THEM DO YOU GET MILITARY MONEY FOR? FROM FEDERAL GOVERNMENT, WE HAVE ABOUT, UH, 36 TO 38% MILITARY CONNECTED. REALLY, WE'RE, SO THIS YEAR WE HAVE RECEIVED OVER $9 MILLION. I WANNA SAY IT'S $9.4 MILLION THAT EXCEEDS OUR CURRENT BUDGET. MM-HMM. MM-HMM. ALLOCATED FOR IMPACT AID. AND OUR BUDGET RIGHT NOW, IT'S $8.7 MILLION. SO WE NEED TO RECEIVE AT LEAST 8.7 MILLION FROM THE FEDERAL GOVERNMENT. MM-HMM . SO WE'RE, AGAIN, HAVE EXCEEDED THAT FOR ABOUT THE FOURTH YEAR IN A ROW. MM-HMM . AND THEN WHATEVER EXCESS THEN GOES INTO THE REVENUE BECAUSE THE REVENUE FUND. AND SO FOR, UH, FY 27, OUR BUDGET'S BASED ON 13,000 STUDENTS. [00:30:01] SO WE'RE SEEING ANOTHER 18 STUDENT DECLINE BASED ON THE PROJECTIONS OF THE DEPARTMENT OF EDUCATION. AND SO WITH THAT, UM, THIS IS WHAT OUR PROJECTED REVENUE CHANGES ARE FOR FY 27, UM, THE STATE, AND THIS COMES FROM THE GOVERNOR'S PROPOSED BUDGET, 13,000 STUDENTS. UH, 51 LESS THAN WHAT OUR ORIGINAL BUDGET FOR 26 WAS, IS SIX POINT, ALMOST $3 MILLION ADDITIONAL FUNDING FOR THE COUNTY. AND THIS IS A WORKING NUMBER. 'CAUSE THIS HASN'T BEEN APPROVED YET, IS 1.2 MILLION IS WHAT WE'RE USING TO BASE OUR BUDGET ON. WE HAD SOME ADJUSTMENTS TO LOCAL MISCELLANEOUS, UM, FUNDS. AND THIS IS FOR THINGS LIKE, UH, TUITIONS, SUMMER, SUMMER SCHOOL TUITION, UM, STUDENT FEES, AND ALSO INDIRECT COST. SO WE HAD SOME ADJUSTMENTS THERE, DOWNWARD ABOUT 115,000. AND THEN ADJUSTMENTS TO FEDERAL GRANTS TO THE TUNE OF A HUNDRED EIGHTY EIGHT HUNDRED THIRTY 4,000. SO IN TOTAL, OUR REVENUE INCREASE IS SIX AND A HALF MILLION DOLLARS OVER LAST YEAR. OVER LAST YEAR. AND THIS IS JUST A SNAPSHOT SIX YEAR HISTORY OF OUR STATE FUNDING. AND YOU CAN SEE IN SOME YEARS, WE, UH, RECEIVED, UH, A LOT MORE MONEY. AND 24 WAS THE YEAR WE GOT THE $3 MILLION IN ALL IN FUNDING FROM, FROM THE GOVERNOR. AND, UM, THEN WE SPENT THAT OVER THE NEXT THREE YEARS AT ENDS THIS YEAR. SO THE STATE ECONOMY AND THE FUNDING FORMULA, UM, TYPICALLY HOWEVER THE STATE ECONOMY GOES, IS HOW SCHOOL FUNDING GOES. BECAUSE WE'RE SUCH A LARGE PORTION OF THE STATE'S BUDGET. AND OVER THE PAST SIX YEARS, WE'VE, WE'VE HAD A VERY GOOD ECONOMY AND WE HAVE BEEN SUCCESSFUL WITH, WITH STATE FUNDING, PARTICULARLY IN RECOVERY, IN STATE FUNDING. BUT STILL WITH THE, WITH THE AMOUNT OF MONEY THAT THE STATE HAS, UM, RIGHT NOW, UM, WE'RE STILL SEEING MINIMAL INVESTMENTS AND RECOVERY FROM THE GREAT RECESSION. SO, UH, COUPLED WITH THAT IS UNREALISTIC STANDARDS OF QUALITY. WHEN WE TALK ABOUT THE STANDARDS OF QUALITY, YOU HAVE TO UNDERSTAND THAT THESE ARE MINIMAL STANDARDS THAT THE STATE FUNDS, AND AGAIN, LOCAL GOVERNMENT IS MORE THAN, IS PROVIDING MORE THAN THEY'RE MINIMALLY REQUIRED TO. AND THIS IS REALLY EVIDENT WHEN WE LOOK AT JUST ON THE FUNDING OF ASSISTANT PRINCIPALS AND PARAEDUCATORS. UH, YOU MAY HAVE SEEN THIS BEFORE, BUT ON ELEMENTARY PRINCIPALS, ASSISTANT PRINCIPALS, WE HAVE 10 ELEMENTARY SCHOOLS. WE HAVE 12 ELEMENTARY, UH, ASSISTANT PRINCIPALS. AND THE STATE FUNDS US FOR NEXT YEAR IN 27, 2 0.58 POSITIONS. NOW, THAT'S NOT FULL FUNDING. 'CAUSE WHAT HAPPENS IS, IS THEY, THEY, THEY APPLY THE WEIGHTED AVERAGE OF, UH, SALARIES, UM, FOR THOSE ASSISTANT PRINCIPALS. AND THEN THEY APPLY THE LOCAL COMPOSITE INDEX. SO THE STATE'S GONNA FUND US 65% OF 2.58 ASSISTANT PRINCIPALS, AND WE PICK UP 35%, AND IT'LL BE REMAINING 9.42 LOCAL GOVERNMENT THAT PICKS UP THE FULL TAB. MM-HMM . SO THIS IS WHERE WE POINT OUT, AND WE CONTINUE TO ARGUE THIS AND ADVOCATE TO THE STATE THAT, UM, SOQ STANDARDS ARE, ARE DIVISION. AND THIS HAS BEEN THE JAC STUDY, UH, CORRECT. FOR, FOR MANY YEARS. THEY, THEY'VE MADE SOME, THEY, THEY'VE MADE SOME, UH, GROUND UP ON, ON IN THE JLA STUDY, UH, PARTICULARLY WHEN IT COMES TO SUPPORT POSITIONS. BUT WE STILL HAVE SOME TO GO. OKAY. SO, QUESTION, UM, ON APS, WHAT CAUSES MULTIPLE APS AT A SCHOOL? IS IT THE NUMBER OF STUDENTS? IS IT THE NUMBER OF PROBLEMS? IT'S A COMBINATION OF BOTH THE NUMBER OF STUDENTS AND SOMETIMES A SPECIAL PROGRAM. AND IT'S AT THAT SCHOOL THAT MIGHT HAVE MAKE MORE DEMAND ON, UH, THAT AP. I WAS JUST CURIOUS 'CAUSE I NOTICED SOME, SOME OF THE SCHOOLS HAVE TWO APS. WHAT'S OUR LARGEST ELEMENTARY? UH, TAB LI THINK IS AROUND 700. YEAH. OKAY. MCGRUDER RIGHT BEHIND IT. UH, NO MCGRUDER, UH, THAT'S KIND OF FLIPPED A LITTLE BIT. OKAY. UH, THAT, UH, WHEN WE REZONED, UH, WE'RE SHIFTING MORE TO, OF THAT BURDEN TO WALLER MILL. AND THAT IS, THAT IS GROWING, UH, RIGHT NOW. UM, MCGRUDER I THINK IS AROUND 6 0 8, 6 10. I COULD GET YOU THOSE NUMBERS. ARE YOU DOING ANY REDISTRICTING AT ALL? NO. . THANK YOU. I JUST WANNA RAISE THAT POINT. OKAY. NOW WE DO HAVE AN OF THE LAST REDISTRICTING. SOME OF IT IS ON PAUSE BECAUSE THE LINCHPIN WAS ADDITIONAL SPACE IN THE DEER ELEMENTARY PARKING LOT. MM-HMM . WE'RE WORKING ON THAT PROJECT RIGHT NOW. AND THEN ONCE THAT IS COMPLETED, THEN THAT ALLOWS US TO DO SOME MORE SHIFTING, UH, THROUGH THREE OTHER SCHOOLS THAT'S BEEN VOTED ON. BUT THEN WE WOULD HAVE TO TAKE A LOOK AT, YOU KNOW, THE SITUATION ON THE GROUND AT THAT TIME AND SEE IF THAT'S STILL NECESSARY. BUT WE HAVE THAT OPEN. SO I SHOWED YOU A SIX YEAR SNAPSHOT OF STATE REVENUE. THIS IS A SIX YEAR SNAPSHOT OF COUNTY REVENUE. AND, UM, JUST WANNA SAY YOUR CONTINUED SUPPORT HAS BEEN CRITICAL IN HELPING US BALANCE OUR WORKFORCE NEEDS AND RISING OPERATIONAL COSTS. SO IN DEN, IN ADDITION TO [00:35:01] IDENTIFYING NEW REVENUES, WE ACTIVELY LOOK FOR SAVINGS. SO FOR FY 27, WE'RE PROPOSING OR PROJECTING APPROXIMATELY $2.6 MILLION IN EXPENDITURE REDUCTIONS THROUGH A STAFF ATTRITION. IT COST EFFICIENCIES THROUGH CONSOLIDATION OF SEVERAL SOFTWARE PLATFORMS AND VRS SAVINGS. THE ATTRITION. THE ATTRITION IS A HIGH PAYING PERSON GOES OUT AND A AND A LESS PAYING PERSON COMES IN. CORRECT. OKAY. IT'S NOT ACTUAL REDUCTION IN TOTAL STAFF. THAT'S WHAT I WAS DRIVING AT. YES. UH, NOT A REDUCTION IN STAFF, BUT JUST A REDUCTION. SO IT'S NOT JUST PEOPLE RETIRING OR LEAVING. CORRECT. WE MAINTAIN THE SAME PERSONNEL AND WE'RE JUST PLACING THEM WITH US LOWER SURE. AHEAD. SO WITH THE REDUCTION IN THOSE EXPENDITURES, UM, AND, AND THE COMBINATION OF OUR NEW REVENUE, WE HAVE NINE POINT, ALMOST $1 MILLION IN ADDITIONAL OR TOTAL RESOURCES AVAILABLE FOR THE BUDGET. AND I'LL TURN THIS BACK OVER TO DR. KE. THANK YOU. SO EVERY YEAR OUR SCHOOLS AND DEPARTMENTS SUBMIT FUNDING REQUESTS EVERY YEAR. WE ARE UNABLE TO FUND THE OVERWHELMING, UH, MAJORITY OF THOSE REQUESTS IS THE BUDGET RECOMMENDATION FOCUSES PRIMARILY ON WHAT ARE OUR MUST-HAVES, WHAT ARE THE LEGAL REQUIREMENTS, WHAT ARE THIS, WHAT, UH, STATE MANDATES THAT END UP BEING UNFUNDED. WE HAD A BIG ONE LAST YEAR. MM-HMM . UH, COMPENSATION AND HEALTH INSURANCE IMPACTS. SO, UM, I'LL REMIND YOU AGAIN OF OUR PRIORITIES, UH, FROM OUR STRATEGIC PLAN. THE REASON I SHARE THIS WITH YOU IS 'CAUSE YOU'RE GONNA SEE SOME COLOR CODED, UH, SLIDES. SO ORANGE IS THE COLLECTIVE COMMITMENT OF, OF THE SCHOOLS IN THE COMMUNITY. SUPPORTIVE CULTURE IS WHAT WE TRY TO KIND OF OUR WORKPLACE CULTURE. AND FOR THE STUDENTS, THE CLIMATE, HIGHLY EFFECTIVE TALENT IS OUR PEOPLE. AND FUTURE READY GRADUATES IS GETTING KIDS ACADEMICALLY PREPARED. SO ALMOST EVERY, UH, EXPENSE SHOULD BE ABLE TO BE SUPPORT OUR STRATEGIC PLAN PRIORITIES. AND SO I WANTED TO REMIND YOU OF THAT. SO WHAT NOW WE WILL DIG INTO, UM, THE OPERATING BUDGET. SO THE, THIS IS THE SLIDE OF THOSE THINGS THAT END UP BEING NEUTRAL FOR US. UM, I MENTIONED EARLIER THAT WE'RE ALWAYS WORKING TO MAXIMIZE OUR RECURRING DOLLARS OR REPURPOSE FUNDS. SO HERE WE'RE CREATING A POSITION TO SUPERVISE OUR SCHOOL NUTRITION PROGRAM TO BE IN COMPLIANCE WITH NEW STATE REQUIREMENTS. UH, IN ADDITION, ADDING AN FTE FOR HVAC AND PLUMBING WORK DEDICATED SOLELY TO OUR CAFETERIA KITCHENS. BOTH OF THESE POSITIONS WILL BE PAID OUTTA THE SCHOOL NUTRITION FUND. MM-HMM . UH, WHICH HAS A HEALTHY BALANCE AND BOTH SHOULD BE EASILY SUPPORTED ANNUALLY BY THAT FUND. WE ALSO LIST HERE SOME HARDWARE REPLACEMENTS. WE HAVE TYPICALLY FUNDED THESE TYPES OF EXPENSES THROUGH STATE SAFETY GRANTS OR END OF YEAR FUNDS. THESE CAPITAL FUNDS WILL MOVE TO OUR MAINTENANCE RESERVE FUND TO FINANCE A REGULAR REPLACEMENT CYCLE. THAT VALCOM SYSTEM IS THE EMERGENCY ALARM THAT WHEN WE PUSH THE BUTTON, THEN IT, IT AUTOMATICALLY TELLS EVERYBODY A CONSISTENT MESSAGE ON WHAT THEY'RE TO DO, UM, UH, ACROSS THE AUDIO IN THE BUILDING. AS FAR AS SUPPORTIVE CULTURE, UH, THERE ARE SOME ADDITIONAL COSTS. SO, UH, WE GOT A NICE BILL FROM, UH, MR. BELLAMY FOR, UH, VARIOUS COUNTY SERVICES, , UH, GREAT. CUTTING THE GRASS, UH, VIDEO SERVICES, GROUND MAINTENANCE, AND, UH, TO SUPPORT, UH, INCREASED COST FOR DEPUTIES. SO THAT COMES AT A COST OF 251,000. UH, YOU MENTIONED, UH, YOU HEARD ME MENTION HVAC AND UNFUNDED MANDATES, UH, EARLIER IN THE PRESENTATION. SO THERE, UH, LAST YEAR WE WERE HIT WITH AN UNFUNDED MANDATE THAT WE HAVE TO, UH, CERTIFY EVERY HVAC SYSTEM IN ALL OF OUR SCHOOLS EVERY FOUR YEARS TO ASHRA STANDARDS. NOW WE DESIGN AND BUILD TO ASHRAE. UH, BUT THAT, UH, BUT, UH, WE DON'T MAKE SURE EVERY UNIT IS UP TO IT. EVERY, UH, EVERY YEAR. UH, YOU KNOW, WE REPAIR THINGS AS THEY BREAK AND, UH, BUT THIS, UH, THIS BILL NOW, UH, OR LAW REQUIRES, UH, REQUIRES US TO HAVE THAT CERTIFICATION REPORTED OUT TO THE BOARD EVERY FOUR YEARS. AND SO OUR ESTIMATES ARE WE'RE GONNA NEED ANOTHER HVAC TECH JUST TO DO THAT WORK. UH, THAT'S GONNA COST US ABOUT A HUNDRED THOUSAND. UH, WE'RE GONNA HAVE TO HAVE MATERIALS AND SUPPLIES IN ORDER TO MAKE THOSE REPAIRS, TO KEEP THEM UP TO THAT STANDARD. UH, AND WE'VE GOT ANOTHER A HUNDRED THOUSAND FOR THAT. NOW, THE BOTTOM LINE, YOU SEE UTILITIES INCREASE, UH, THE BILL THAT WAS IN, UH, THE, UH, GENERAL ASSEMBLY THIS SESSION TALKED ABOUT THE FACT THAT WE ALSO HAD TO KEEP OUR HUMIDITY A CERTAIN LEVEL ALL THROUGH, UH, THE SUMMER. THAT SEEMS TO HAVE, UH, BEEN CARRIED OVER . UH, BUT WE'RE ALSO EXPERIENCING OTHER UTILITY INCREASES. SO WE'RE GONNA LEAVE THAT IN THERE FOR NOW. LET'S SEE, LET'S SEE WHERE WE END UP. UM, THEN IS THERE A FREE ON REPLACEMENT PROGRAM AS WELL? [00:40:01] ARE YOU FORCED TO CHANGE OUT, TO MAINTAIN CURRENT RECOMMENDED? IF WE NEEDED TO, WE WOULD. AND WE DO ACTUALLY HAVE, UH, SOME R 22 THAT'S STILL STILL USED. AND WE, WE BANKED IT. I MEAN, WE HAVE, UH, WE HAVE STORAGE FOR SOME OF IT. OKAY. AND, UH, BUT AT SOME POINT THAT ALL IS ALL GONNA GO AWAY FOR A REPLACEMENT. WHAT ARE THE ASHRAY STANDARDS? ASHRAY IS THE, I COULDN'T, I, WELL, MR. K, DO YOU REMEMBER? SO IT'S A WORLDWIDE CONSORTIUM SETTING STANDARDS FOR AIR QUALITY IN PUBLIC AIR QUALITY. I WAS GONNA HAVE YOU DEFINE WHAT? ASHRA. , YEAH, I KNEW THAT. YEAH. UM, HUMIDITY LEVELS, UH, CARBON MONOXIDE LEVELS. THEY SET STANDARDS FOR ALL OF THOSE. AND THEY, UM, HAVE BUMPED THOSE STANDARDS UP ACROSS THE BOARD REGARDLESS OF WHETHER THE BUILDING'S OCCUPIED OR NOT. OKAY. UM, SECURITY PLATFORM. WHAT IS, WHAT DOES THAT CONSIST SECURITY PLATFORM WOULD BE THE NEXT THING? SO WE'RE WORKING ON IDENTIFYING A PLATFORM WHERE, UM, YOU CAN HAVE, UH, ALL STAFF THAT HAVE A BADGE WHERE IF HIT A CERTAIN AMOUNT OF TIME, SO WE'LL ACTUALLY PUT THE SCHOOL IN LOCKDOWN. SO, UH, FURTHER DECREASING THE TIME IT WOULD TAKE TO, UH, GET THE SCHOOL LOCKED DOWN. UH, IT HAS A NUMBER OF FEATURES WITH THE VISITOR MANAGEMENT SYSTEM ALL THE WAY THROUGH TO, IF WE HAD TO HAVE REUNIFICATION. UH, IT, IT, IT WORKS ALL THE WAY THROUGH. WE HAVE BUILT A SYSTEM LIKE THAT. WE'VE DONE IT ALL MANUALLY. UH, BUT IT'S ALSO SOMETHING THAT WAS PART OF THE MOST DIFFICULT PIECE OF WHAT WE DO. AND SO WE'RE LOOKING AT A PIECE WHERE WE CAN, CAN SOURCE THAT TO A SECURITY PLATFORM. UH, THERE'S ONE THAT WE'RE LOOKING AT THAT'S USED, UM, UH, NATIONALLY AND ALSO IN THE AREA. AND SO WE'RE WORKING ON, ON GETTING TO THAT, TO THAT PIECE NOW. OKAY. UH, CLINIC AND ATHLETIC TRAINING SUPPLIES. IN RECENT YEARS, THERE HAVE BEEN THINGS THAT WE HAVE BEEN REQUIRED TO HAVE IN THE CLINIC AND ALSO ATHLETICALLY, UH, FOREMOST IS, UH, AEDS MM-HMM . AND PORTABLE AEDS. UH, RECENT, UH, MANDATE WAS THAT WE HAVE TO, IN OUR ATHLETICS, UH, SCENARIOS HAVE AN A ED WITHIN THREE MINUTES ROUND TRIP FROM THE SOURCE OF THAT A ED TO THE, TO THE PERSON THAT WOULD NEED IT. AND THAT INCLUDES CROSS COUNTRY RACES, GOLF MATCHES, YOU KNOW, ANYTHING. SO, UH, WE HAVE TO MAKE A GOOD FAITH EFFORT TO HAVE THAT. SO WE'VE HAD TO ORDER ADDITIONAL AEDS. WE THOSE NEED BATTERY REPLACEMENTS. MM-HMM . THERE ARE OTHER THINGS IN THE CLINICS NOW THAT WE HAVE TO HAVE ON, ON DEMAND. SO WE'RE, WE'RE CREATING A, A BUDGET LINE FOR THAT. UH, HIGH SCHOOL ATHLETIC DIRECTORS, UH, THE VHSL HAS IN RECENT YEARS, JUST OPENED EVERYTHING UP. YOU CAN BE PRACTICING ALL THE TIME FOR EVERY SPORT. UH, THROUGHOUT THE SUMMER. OUR ATHLETIC DIRECTORS WERE ON AN 11 MONTH CONTRACT, SO WE'RE ADDING A 12TH BECAUSE THEY JUST NEED TO BE IN CONTACT WITH THEIR COACHES AND BE HELPING MONITORING OF THOSE OFFSEASON WORKOUTS. SO IT INCREASE THE SALARY TO COVER FOR THAT J JUST BECAUSE THE 12TH MONTH? YES. RIGHT. NOT THE RATE. UM, AND THEN ALSO AN INCREASE TO THE IT HARDWARE BUDGET. THIS IS SOMETHING WHAT WE'VE BEEN DOING OVER THE LAST THREE YEARS. UM, YOU REMEMBER ME EARLIER IN THE PRESENTATION TALKING ABOUT TRYING TO GET THINGS OFF OF THAT END OF YEAR FUNDING. SO THIS IS FOR, UH, SERVERS, SWITCHES, PROJECTORS, DESKTOP COMPUTERS, WIRELESS ACCESS UNITS, UPS, BATTERY BACKUPS. UH, SOME OF THE ITEMS ON TOP. SOME OF THOSE ARE SOME OF THE ITEMS ON TOP OF OUR ONE-TO-ONE DEVICES THAT HAVE BEEN TYPICALLY LEFT OUT, UH, FOR, UH, OR JUST FUNDED THROUGH THE END OF YEAR FUNDING. AND LAST YEAR WE WERE ABLE TO REPLACE OUR 9-YEAR-OLD TEACHER WORKSTATIONS THAT WE HAD PUSHED TO AN ABSOLUTE DEPRECATION POINT. UM, SO NOW HIGHLY EFFECTIVE TALENT. SO THIS IS THE ONE THAT ALL THE EMPLOYEES PAY ATTENTION. THIS IS THE ONLY SLIDE THEY PAY ATTENTION TO, IS, UH, THE PAY INCREASES. SO, UH, WHAT WE'RE PROPOSING THIS YEAR IS A 3.25% AVERAGE ACROSS THE BOARD FOR ALL LICENSED AND NON-LICENSED STAFF. NOW, THAT BREAKS OUT DIFFERENTLY BECAUSE THE WAY OUR PAY LANES ARE, UH, ESTABLISHED THAT THE AVERAGE STEP IS 1.5%. SO WE WOULD ON THE LICENSE, 1.75 FOR THE NON LICENSE, AND THEN THE BALANCE GO TO A MARKET ADJUSTMENT. AND THAT COMES AT A COST OF JUST UNDER 4 MILLION. THE NEXT LINE IS OUR QUADRENNIAL REVIEW. NOW, THIS IS SOMETHING WE DO ANNUALLY. WE BREAK UP OUR WORKFORCE INTO FOUR GROUPS. AND WE ARE IN GROUP THREE OR THE YEAR THREE OF A, OF A FOUR YEAR CYCLE. THIS IS PRIMARILY THE PEOPLE THAT ARE ON OUR NON-LICENSED GRADES, UH, 22 THROUGH 28. AND THE, WHAT WE DO THERE IS WE DO A SALARY COMPARISON WITHIN OUR COMPARATOR MARKET. AND WE LOOK TO SEE IF, IF INDIVIDUAL JOBS, IF THE MID POINTS ON THEIR PAY GRADES, WHERE THAT MATCHES [00:45:01] UP, UH, WITH THE COMPARATORS. AND IF IT'S MORE THAN 5% BELOW THE AVERAGE, THEN WE MAKE AN ADJUSTMENT MM-HMM . AND SO FOR THIS YEAR TO KEEP THEM UP TO DATE, THAT WOULD BE 141,000 FOR THE AFFECTED PHYSICIANS. AND THIS IS SOMETHING WE DO ANNUALLY TO TRY TO KEEP UP THAT MARKET COMPETITIVENESS. AND WHERE YOU FALL THIS YEAR ON KIND OF HAMPTON ROADS, UM, LIST OF SALARIES, UM, ARE, ARE WE WHERE WE WANT TO BE? SHOULD WE BE HIGHER OR LOWER? WELL, THIS BRINGS THOSE, ARE YOU TALKING ABOUT THE TEACHER SALARIES? YES. YEAH, TEACHER SALARIES. I THINK, UM, THIS, DR. WRIGHTS, YOU REPORTED OUT, UH, WE'RE PRETTY CONSISTENTLY NUMBER THREE IN THE DIVISION ARE IN THE, ON THE PENINSULA. BUT ANYWHERE FROM TWO TO FOUR, DEPENDING ON WHICH PAY LANE YOU'RE LOOKING AT, UH, YOU KNOW, BASED ON DEGREE, BACHELOR'S, MASTER'S, DOCTORATE, AND THE THREE AND A QUARTER PERCENT IS LIKELY TO MAINTAIN THAT LEVEL. THAT I, IT, IT SHOULD BE CLOSE. YOU KNOW, SOME, I DON'T, YOU KNOW, SOME DIVISIONS HAVE GONE FOR 2%. OTHERS ARE IN THE FOUR RANGE. SO I, I, I HAVEN'T SEEN WHERE THAT WOULD BREAK OUT. OKAY. UH, BUT THAT THREE AND A QUARTER IS A NUMBER I'D LIKE TO SEE GO HIGHER. OUR STAFF THAT, THAT BARELY COVERS INFLATION THAT THEY'RE EXPERIENCING ANY ADDITIONAL DOLLARS IS, UH, SOMETHING I'D LIKE TO SEE THAT BUMPED A BIT MORE. UH, SO WE GET BACK TO UNDER THE QUADRANT REVIEW, WE HAVE THREE POSITIONS THERE. UH, WE HAVE A FEW POSITIONS. THEY'RE USUALLY IN OUR LOWER, UH, LOWER SALARY POSITIONS THAT WE LOOK AT ANNUALLY TO MAKE SURE MM-HMM . AND THEY'RE ALSO HARDER TO HIRE. SO OUR PARAEDUCATORS, OUR BUS ASSISTANTS AND OUR CUSTODIANS, UH, COULD PARAEDUCATORS, WERE RECOMMENDING A 2%. NOW THIS IS ON TOP OF THE, UH, 3.25 THAT GOES FOR EVERYBODY. MM-HMM . 2% FOR THE PARA, UH, TWO, 2.5 FOR THE BUS ASSISTANCE, AND 5% FOR THE CUSTODIANS. WE ARE, UH, SERIOUSLY UNDERSTAFFED IN THE CUSTODIAL RANKS. UM, AND SO THEN THE LAST LINE IS WE ARE CHANGING, WE ARE BREAKING OUT SPECIAL EDUCATION PARAEDUCATORS FROM MM-HMM . THE OTHER PARAEDUCATORS. WE HAVE NOW, UH, HAVE A LONG RUN OF NOT BEING ABLE TO COME CLOSE TO FILLING ALL THOSE POSITIONS. WE'RE CREATING A NEW TITLE FOR THEM, STUDENT SUPPORT TECHS, AND THERE IS A RAISE IN THERE. PLUS WE ARE FOLDING IN SUPPLEMENTS THAT THEY GET IN SELF-CONTAINED CLASSROOMS. SOME OF THIS IS, UH, PEOPLE HANDLING, UM, YOU KNOW, DIAPERING AND OTHER OTHER NEEDS. WE'RE FOLDING THAT INTO THE ACTUAL SALARY SO THAT WHEN PEOPLE ARE LOOKING FOR THOSE JOBS, THEY'RE ACTUALLY SEEING IT BECAUSE THEY WERE SEEING PARAEDUCATOR. AND HERE'S THE RATE. AFTER THEY GOT THE JOB, THEN THEY WOULD FIND OUT THERE WAS SOME ADDITIONAL SUPPLEMENT, BUT THAT WASN'T DRAWING THEM TO THE JOB. SO WE'RE HOPING THIS IS GONNA HELP US WITH, UH, DRAWING PEOPLE TO SOME, UH, OPEN POSITIONS WHERE WE NEED THE MOST HELP. SO NOW YOU SAID YOU'RE HIRING ABOUT 180 PER YEAR. HOW MANY OF THOSE WOULD BE, UH, REPLACING THOSE WHO HAVE RETIRED? UH, DR. WRIGHT, DO YOU HAVE OUR RETIRED RETIREMENT BEFORE, BEFORE I MOVE ON, OR, WELL, I'M GETTING TO THE MOVING QUESTION. WELL, WE HAVE, UH, YOU KNOW, WE HAVE DIFFERENT, WE TRACK THE REASONS THAT EMPLOYEES LEAVE A REPORT ON THAT ANNUALLY. I JUST CAN'T, UH, REMEMBER THAT OFF THE TOP OF MY HEAD. AND I THINK DR. WRIGHTS IS GOING TO HIS PRESENTATION. SO LAST YEAR WE HIRED 97 NEW HIRES. AND OF THOSE FOUR RETIREES, I DON'T THINK I HAVE THAT NUMBER. I, WE, ONCE AGAIN, WE CAN, IT VARIES FROM YOUR, WE CAN SEND YOU THAT ALSO IF YOU'D LIKE TO. AND WHERE ARE WE LOSING STAFF TO? WHO ARE MOVING BETWEEN DIVISIONS? OH, WELL ON THAT, I CAN'T ANSWER. 'CAUSE I REMEMBER HIS SLIDE. WE ARE A NET IMPORTER OF, UH, EMPLOYEES, UH, NOT AN EXPORTER. UH, HE HAS A SLIDE WHERE HE SHOWS THE EXACT NUMBERS. I CAN SEND THAT TO YOU ALSO, WHERE WE COMPARE OURSELVES TO OUR COMPARATOR REGION. AND I THINK THERE WAS ONLY ONE DIVISION WHERE WE DIDN'T OUTPACE IMPORT FROM EXPORT. AND THAT'S BECAUSE ONLY ONE PERSON CHANGED AND ONE PERSON LEFT, BUT NOBODY CAME IN. OKAY. UH, AND THAT, I THINK THAT WAS PCOS, RIGHT? MM-HMM . UH, BUT EVERYBODY ELSE, WE, WE IMPORTED MORE THAN WE EXPORT. SO WE ARE THE DIVISION OF CHOICE AS WE ARE THE YES, WE ARE A DESTINATION DIVISION. YES, SIR. OKAY. MM-HMM . THANK YOU. ALRIGHT. OKAY. SO NOW WE'LL MOVE ON TO JUST SOME OTHER, UH, TALENT PIECES IS, UM, AS WE SAID, UH, SELF-CONTAINED TEACHERS. NOW, THESE ARE TEACHERS WHO WORK IN SPECIAL EDU EDUCATION CLASSROOMS. STUDENTS DON'T LEAVE THE CLASSROOM MORE IF THEY DO, [00:50:01] UH, ONLY FOR A SHORT PERIOD OF TIME. AND SO WE'RE JUST ASKING FOR, UH, WE'RE GONNA ADD A THOUSAND DOLLARS TO EACH OF THOSE 25, UH, STAFF MEMBERS. UH, NOW THE BIG ONE IS THE HEALTH INSURANCE PREMIUM. MM-HMM . UH, THIS, REMEMBER THAT WE, WE DID THIS IN FEBRUARY. WE HAVE SINCE FOUND OUT THAT OUR CONSULTANT SAYS THAT WE SHOULD BE CONSIDERING A 19% INCREASE IN HEALTHCARE, UH, OR HEALTHCARE INSURANCE. I DON'T KNOW WHAT NUMBER YOU HAVE. UH, WE PUT IN 10% INTO THIS BUDGET, AND I'M GONNA ADDRESS THIS LATER. UM, OKAY. SO BEFORE YOU MOVE ON MM-HMM . WHILE WE'RE TALKING ABOUT SALARIES, UM, RIGHT NOW YOU'RE, YOU'RE PAYING PEOPLE ACROSS THE BOARD 3.25. WHY ARE YOU NOT PERFORMANCE MERIT BASE? WHAT'S THE INCENTIVE? IF I'M A TEACHER AND I'M DOING REALLY, REALLY GOOD AT MY JOB AND SOMEBODY IS NOT, THEY'RE GETTING THE SAME PAY. SO WHAT'S THE INCENTIVE? DO YOU THERE'S NO BONUSES, THERE'S NO, LIKE, TO ME IT JUST DOESN'T MAKE SENSE THAT YOU WOULD JUST PAY EVERYBODY ACROSS THE BOARD. I DON'T THINK THAT'S FAIR. MM-HMM . I THINK IT'S INEQUITABLE WHEN YOU HAVE SOME THAT ARE STARS AND SOME THAT ARE LESS THAN STARS. RIGHT. SO MY EXPERIENCE WOULD BE WHEN YOU PUT BONUSES ON THE TABLE, IT GETS THROWN OUT THE WINDOW EVERY TIME YOU HAVE A RECESSION. I'VE SEEN IT OVER AND OVER AGAIN. I SAW IT IN FLORIDA AND I SAW IT IN NORTH CAROLINA. I'VE ALSO SEEN MERIT-BASED SYSTEMS THAT HAVE TRIED, WAIT, WAIT A MINUTE. WHAT DO YOU MEAN BY THROWING OUT THE WINDOW? EVERY TIME THERE'S A RECESSION, IT'S THE FIRST THING THAT'S CUT. LIKE BY CUTTING. OKAY. WELL THAT'S WHAT YOU MEANT. YEAH. I'M SORRY IF I THAT THAT'S WHAT I MEAN. SO YOU'RE SAYING THAT DURING THOSE TOUGH TIMES, YOU'RE NOT ABLE TO OFFER THAT MERIT BASED BONUS MM-HMM . SO I'VE NEVER SEEN A MERIT BASED PROGRAM THAT HAS BEEN ABLE TO SUSTAIN. AND THEN, AND ON TOP OF THAT, UM, MY EXPERIENCE HAS BEEN THAT WHEN, UH, THERE'S BEEN EFFORTS TO DIFFERENTIATE PAY, THAT WE FIND THAT THERE'S SUCH A DIFFERENCE IN THE DEMANDS OF DIFFERENT TYPES OF TEACHING POSITIONS, THAT TO TRY TO FIND ONE EQUITABLE SYSTEM HAS BEEN DIFFICULT. AND SO I I'VE JUST YET TO SEE A GOOD ONE. I, I SEE WHERE LOGICALLY IT MAKES SENSE, BUT I'VE NEVER SEEN ONE REALLY DONE WELL ANYWHERE. I GUESS I'M SHOCKED BY THAT WITH ALL THE SCHOOLS ACROSS THE UNITED STATES, THAT THERE'S NOT SOMETHING THAT IS A MERIT BASED PERFORMANCE BASE THAT, THAT SHOCKED ME. OH, THERE, THERE, THERE MIGHT BE. I JUST HAVE NOT SEEN IT IN MY EXPERIENCE. SO MY, MY ONE EXPERIENCE WITH THIS, WITH THE STATE, UM, THEY TRIED TO IMPLEMENT THIS AND, UM, WHAT ENDED UP HAPPENING IS THE STATE FUNDED THE AGENCY AND SAID, 3% OF YOUR EMPLOYEES ARE EXCEPTIONAL. AND THEN THEY GAVE YOU MONEY FOR THOSE 3% EMPLOYEES. AND THEN IT BECAME, UM, A, A REAL FIGHT OVER WITH, WITH SUPERVISORS. 'CAUSE YOU HAVE, IT'S VERY SUBJECTIVE. YOU HAVE SOMEONE WHO, WHO EVALUATES VERY, VERY STRICTLY, AND YOU HAVE ANOTHER SUPERVISOR WHO DOESN'T EVALUATE AT THE SAME LEVEL MM-HMM . AND SO THERE'S SOME INEQUITIES IN THE PROCESS AROUND THE PEOPLE THEMSELVES WHEN IT COMES TO MAKING THOSE DECISIONS AND EVALUATING THE EMPLOYEES. SO THERE WAS LIMITED FUNDING THAT'S, THAT WAS AVAILABLE, AND THAT'S WHAT WE'VE BEEN DEALING WITH COMING OUTTA THE RECESSION, IS THE LIMITED FUNDING TRYING TO CATCH UP FROM THE FIVE YEARS THAT TEACHERS WERE NOT PROVIDED RAISES. AND SO, UM, WE CONTINUED TO PROVIDE EVERYBODY THAT, THAT FUND THAT THAT SAME RAISE IN ORDER TO BRING THEM OUT OF, UH, THE LOSS THAT WAS INCURRED DURING THAT, UH, RECESSION. TO, TO WAYNE'S QUESTION IF, IF NOT FINANCIAL INCENTIVES, HOW, HOW DO YOU IN SYNTHESIZE PEOPLE TO HIGHER PERFORMANCE ON THE TEACHER SIDE? AND SECOND QUESTION, IF MERIT BASED PERFORMANCE EVALUATION AND COMPENSATION DOESN'T WORK ON THE EDUCATION SIDE, YOU STILL GOT 800. SOME PEOPLE ON THE NON-EDUCATION SIDE COULD THAT BE APPLICABLE THERE TO HELP IN SYNTHESIZE PERFORMANCE AND, AND, AND REWARD PEOPLE FOR PERFORMING AT A HIGHER LEVEL AS OPPOSED TO ACROSS THE BOARD. OKAY. SO MY FOLLOW UP QUESTION WOULD BE, SO WHERE IS THAT, WHERE ARE THOSE ADDITIONAL DOLLARS COMING FROM TO INCENTIVIZE? OR AM I GOING TO HOLD SALARIES STATIC FOR A FEW YEARS TO CREATE THAT ABILITY? WELL, THAT, THAT'S A QUESTION YOU WORK TOWARDS. BUT FUNDAMENTALLY, FUNDAMENTALLY, HOW CAN, WHAT WOULD THAT, WHAT WOULD THAT LOOK LIKE? THEN YOU CAN TALK ABOUT WHAT WOULD [00:55:01] IT TAKE TO, TO FUND THAT HAVE, IS THAT SOMETHING THAT Y'ALL, Y'ALL HAVE EXPLORED? HAVE YOU, HAVE YOU SEEN IT ON THIS ON THE ADMINISTRATIVE SIDE, WORKED ELSEWHERE? I HAVE NOT SEEN IT. THAT DOESN'T MEAN IT'S NOT OUT THERE, BUT I HAVE NOT SEEN IT. IN FAIRNESS WITH ALL THE COLLECTIVE BARGAINING, UH, BILLS GOING THROUGH THE STATE RIGHT NOW. HOW, HOW WOULD YOU POSSIBLY BUILD A A MERIT-BASED SYSTEM? IT'S GONNA, THAT'S NOT SOMETHING THE UNIONS WOULD SUPPORT. NOW WE HAVE PROVISIONS THAT WE CAN WITHHOLD A RAISE, UM, IF SOMEBODY'S ON A PERFORMANCE PLAN, BUT OUTSIDE OF THAT, EVERYBODY GETS THE SAME RACE. YEAH, I UNDERSTAND THE CONCEPT. UH, IN FACT, I'VE LIVED THROUGH SEVERAL ITERATIONS OF THIS IN MY LIFE. THE PROBLEM IS THERE'S ALWAYS A WAY TO GAME THE SYSTEM. MM-HMM . ALWAYS A WAY TO GAME THE SYSTEM. AND IT BECOMES A, IT BECOMES AN INHIBITOR A LOT OF TIMES. I MEAN, YOU'LL GET YOUR BRIGHT AND SHINIES AND THEY'LL, THEY'LL, THEY'LL PROGRESS TO THE POINT OF INCOMPETENCY. BUT FOR THE MOST PART, UH, IT JUST, IT, IT BECOMES, UH, THE FOCUS IS NOT ON THE, ON THE JOB. IT'S THE FOCUS ON GETTING MORE MONEY. AND SO, UM, I'VE JUST, IT'S, IT'S ALWAYS GAMED. IT'S ALWAYS GAMED. AND IT'S, UM, IT'S NOT VERY PRODUCTIVE. IT'S GOTTA, THEY GOTTA HAVE, I MEAN, IT'S, IF IT'S MONEY, IF MONEY IS IT, THEN MAYBE THAT, UH, YOU COULD DO LIKE THAT. YOU COULD DO THAT ON THE STOCK MARKET, OR IF YOU GOT BROKERS IN A BROKERAGE FIRM, STUFF LIKE THAT. I CAN SEE IF THAT'S WHERE YOUR MONEY GAME. BUT, BUT THESE FOLKS ARE NOT NECESSARILY MONEY ORIENTED. IF YOU WERE, YOU WOULDN'T BE A TEACHER, RIGHT? MM-HMM . SO, I MEAN, THERE'S OTHER THINGS YOU CAN DO, MAKE A LOT MORE MONEY. WELL, A LOT OF OTHER THINGS TOO. BUT AGAIN, THAT, THAT, THAT ENVIRONMENT IS WHAT I'VE LIVED UNDER FOR 36 YEARS. I MEAN, EV EVERY YEAR MY PERFORMANCE GETS EVALUATED AND I EITHER MEET OR EXCEEDS, AND THEN MY, MY, UM, RAISE MY BONUS IS IMPACTED BY THAT AND HOW MUCH MY, UH, SALARY INCREASE IS IMPACTED BY THAT. SO THAT DIDN'T SYNTHESIZE ME AND EVERYBODY THAT I WORK WITH TO TRY TO GET THAT EXCEEDS RATING. SO YOU GET A HIGHER SALARY, YOU GET A HIGHER BONUS. YOUR LIMIT, YOUR LIMITATION THOUGH, ON WHAT YOU'RE TALKING ABOUT THOUGH, IS HOW MUCH BUSINESS YOU GET. OKAY. I MEAN, IF YOU'RE NOT MAKING MONEY, YOU'RE NOT MAKING MONEY IN YOUR COMPANY, YOU'RE NOT GONNA BE GETTING THESE PAY RAISES. YOU'RE NOT GONNA, I MEAN, I MEAN, I, I LIVED THROUGH THIS AS A CONTRACTOR AND, UM, AND THE ONLY WAY YOU WERE GONNA GET RAISES IS THAT HOW MUCH MONEY DID YOU BRING IN AND HOW HAPPY WAS YOUR CUSTOMER? AND THEN NOT EVERY, EVERYBODY GOT IT, BUT STILL IN THE SAME TOKEN, UH, THAT, AND THEN YOU JUST PRICE YOURSELF RIGHT OUTTA THE MARKET. AND IN THIS PARTICULAR CASE, I DON'T KNOW HOW YOU PRICE YOURSELF OUT OF THE MARKET AND THE FACT YOU JUST BUTT UP AGAINST THE TAX RATE. BUT, UH, YEAH. I, IT'S, IT'S THE CONCEPTS OF DOING THIS, I DON'T, I, THEY'RE THERE. I'VE SEEN IT I JUST DON'T KNOW HOW IT APPLIES IN, IN, UH, THE LOCAL LEVEL. I JUST, I JUST SEE A STRUGGLE. IT'S, UH, TIME CONSUMING, UM, SUBJECTIVE AND, WELL, IT'S ALWAYS VERY SUBJECTIVE. UH, YOU CAN, YOU CAN MAKE SOME OBJECTIVE PARTS OF IT, BUT IT'S VERY SUBJECTIVE AND IT'S JUST GAME. IT'S, IT'S A GAME SYSTEM. SO I THINK IT'S JUST EASIER NOT TO DO IT. WELL, JUST 'CAUSE IT'S EASIER NOT TO DO IT DOESN'T MEAN THAT YOU SHOULDN'T DO IT. I KNOW, BUT IT'S EASIER. I'M JUST SAYING IT'S NOT, IT'S EASIER NOT TO DO IT. I'M JUST SAYING IT'S NOT, NOT EASY, IT'S JUST NOT EASY. EASY. IT'S EASIER. AND I THINK TO DO IT, I THINK THAT'S PROBABLY WHY IT'S BEING DONE. IT'S EASIER THAT WAY INSTEAD OF DOING IT. RIGHT. EASIER NOT TO DO IT. IT'S EASIER NOT TO DO. WELL, YOU GET TO THIS POINT, YOU GET TO THIS POINT WHERE YOUR NUMBER ONE SCHOOL SYSTEM IN THE STATE, WE INCENTIVIZE AND DO WHAT MAKE 'EM NUMBER ONE A PLUS IN THE NATION. . YEAH. THE OTHER POTENTIAL DOWN SIDE TO TO THAT IS WHEN, WHEN YOU WORK IN A TEACHER SHORTAGE, LIKE WE CURRENTLY EXPERIENCE AND WE HAVE SOME JUST FLEXIBILITY TO PROVIDE A RAISE TO, TO ANOTHER TEACHER ABOVE ANOTHER, ABOVE OTHER TEACHERS. IS THAT IT? IT MAY BE IT, IT MAY BE, WE MAY BE MORE INCLINED TO SAY, WE'RE GONNA GIVE IT TO THE SPECIAL EDUCATION TEACHERS BECAUSE WE HAVE A HARD TIME HIRING THOSE. SO WE'RE GONNA TO KEEP YOU, WE'RE GONNA GIVE YOU A 5% RAISE AND GIVE EVERYBODY ELSE A 3.5% RAISE. THAT MIGHT AFFECT SOME OF THOSE DECISIONS. MM-HMM . WHEN YOU'RE, WHEN YOU'RE JUDGING SOMEONE ON A MERIT BASED, UM, SO MM-HMM . IT CAN GET, IT CAN GET CLARITY. THERE ARE POCKETS IN THE PROCESS. YES. YEAH. THERE, THERE ARE POCKETS. THIS IS THE EASIEST THING TO DO, BUT I'VE NEVER SEEN, I'VE NEVER SEEN A SYSTEM, UM, IN GOVERNMENT AND MY 37 YEARS, UM, THAT WORKS ON PERFORMANCE BASE. THAT'S EQUITABLE. PARTICULARLY WHEN YOU HAVE A, A LARGE GROUP LIKE TEACHERS AND YOU HAVE PE TEACHERS COMPARED TO CHEMISTRY TEACHERS OR PHYSICS TEACHERS, UH, CTE TEACHERS, WORLD LANGUAGE TEACHERS, ALTHOUGH THESE ARE VERY HARD TO FILL POSITIONS, BUT IT MIGHT BE EASIER FILL UP A PE TEACHER THAN IT IS A WORLD LANGUAGE TEACHER RIGHT NOW. OR PARTICULARLY A SPED TEACHER. [01:00:01] SO IT JUST BECOMES VERY PROBLEMATIC. IT JUST ADDS ANOTHER LAYER OF COMPLICATION TO, TO THE PROCESS. NATIONAL STORY. I UNDERSTAND THE DISCUSSION, BUT LET'S CONTINUE WITH THE PRESENTATION. WHAT'S OUR NATIONAL, WHAT'S OUR, WHAT'S OUR NATIONAL SHORTAGE TEACHER USED TO BE QUARTER OF A MILLION WITHIN THE, I DON'T KNOW, THE NATIONAL, I HAVEN'T LOOKED AT THAT RECENTLY. NO. YOU GUYS USED TO COME IN HERE AND THROW THAT AT US ALL THE TIME. YEAH, THAT WAS ME. I WAS THE ONE THAT WOULD TELL YOU THAT. AND, AND THEN IT HAPPENED. AND SO, UH, BUT WE HAVE, UH, ENJOYED, UH, A GOOD EXPERIENCE THE LAST COUPLE YEARS AS FAR AS FILLING OUR SPOTS. THERE HAVE BEEN A FEW THAT ARE STILL HARD TO HIRE. UH, BUT ON THE WHOLE, WE'RE DOING, UH, VERY WELL RIGHT NOW. ALRIGHT. SO JUST, JUST TO REMIND YOU THAT I'M GONNA COME BACK TO THAT HEALTH INSURANCE PREMIUM, BECAUSE THAT IS, THAT IS A BIG PAIN POINT FOR US. OKAY. SO, UH, MOVING ON TO FUTURE READY, UH, GRADUATES. SO, UH, MR. BOWEN EARLIER MENTIONED THE ALL IN FUNDING, WHICH WAS BASICALLY GRANT FUNDING FROM THE STATE. AND WE'RE OFTEN ASKED, YOU KNOW, ONCE YOU GET A GRANT FOR SOMETHING, DOESN'T THAT AUTOMATICALLY JUST GET ABSORBED INTO THE, UH, INTO THE BUDGET? AS WE LOOK AT, UH, WHO WE'VE HIRED AND THE MONEY THAT WE'VE USED FOR THE ALL IN FUNDING, WE DO WANNA RETAIN TWO OF THOSE READING PARAS AND PUT THEM ONTO THE BUDGET. A HALF A LITERACY COACH AND ONE ASSESSMENT AND COMPLIANCE COORDINATOR. NOW, THIS ONLY CONSTITUTES 20% OF THE SALARIES THAT WERE IN ALL OF THAT, UH, ALL IN FUNDING. SO IT ISN'T AN AUTOMATIC, WE TAKE IT ALL ON IN THIS SITUATION, WE'RE, UH, WE SEE BENEFIT TO ABSORBING 20% OF WHAT WAS PROVIDED. UH, WE ALSO HAVE ADDITIONAL REQUESTS TO IMPROVE SERVICE DELIVERY. UH, TAB HIGH SCHOOL AS, UH, I'M SORRY, TAB ELEMENTARY SCHOOL HAD HAD TO, UH, PERFORM 43 CHILD STUDIES FOR SPECIAL EDUCATION THIS FALL. AND WE NEED SOME MORE CAPACITY THERE. SO IN THAT SECOND, UH, SECOND LINE THERE, THEY'RE SPECIAL EDUCATION TEACHER SPECIALIST. UH, THAT RIGHT NOW, IF WE WERE DOING IT TODAY, IT WOULD GO INTO TAB ELEMENTARY, BUT IT MIGHT BE SOMETHING THAT FLOATS OR IS SHARED BETWEEN TWO SCHOOLS OR MOVES TO A DIFFERENT SCHOOL. AS WE ANTICIPATE THAT CONTINUING TO HAVE MORE SPECIAL EDUCATION IDENTIFICATION WORK, WHAT WOULD REQUIRE 43 STUDIES STUDENTS THAT WOULD HAVE BEEN REFERRED EACH STUDY OR PERSON? EACH PERSON. OKAY. I WAS JUST THINKING AS THE WHOLE SAYING AS A, YOU KNOW, WHAT THE HECK, FOUR, THREE TIMES. YEAH. . AND, BUT THAT'S NOT A, WE JUST GO IN, WE LOOK AT A KID FOR AN HOUR AND MAKE A DETERMINATION. IT'S A, IT'S A LONG ELABORATE PROCESS. SO, SO WHEN YOU TALK ABOUT, WE TALKED ABOUT ASSISTANT PRINCIPALS EARLIER, OR A LEAD SPECIAL EDUCATION TEACHER OR SOMETHING. SOMEBODY'S GOT TO BE THERE TO DO THAT WORK. AND SO WE, SO WHEN YOU DO A STUDY, THEN WHAT HAPPENS? WELL, THEY'RE EITHER DETERMINED THAT THEY QUALIFY FOR SPECIAL EDUCATION OR THEY DO NOT. OKAY. SO THEY'RE, THAT'S THE, THAT'S WHAT YOU'RE DOING. OKAY. ARE YOU FINDING CHILDREN COMING IN AT LATER GRADES THAT REQUIRE SPECIAL EDUCATION BECAUSE THEY HAVE NOT MADE IT IN PRIVATE SCHOOL, OR THEY'RE NOT MADE IT IN HOMESCHOOL? THERE IS ALWAYS, UH, THERE ARE ALWAYS STUDENTS WHO WERE NOT IDENTIFIED AT THEIR PREVIOUS, UH, LOCATIONS. I DON'T KNOW IF I HAVE ANY NUMBERS. DR. SKINNER, DO YOU HAVE THAT ON YOUR FINGERTIPS? I, I DO NOT HAVE THAT AT MY FINGERTIPS. REMEMBER, WE, WE DO HAVE A LARGE MILITARY POPULATION, SO WE HAVE A LOT OF STUDENTS COMING INTO OUR SCHOOL DIVISION, AND SOMETIMES WE HAVE TO GO THROUGH THE PROCESS WITH THOSE PARTICULAR STUDENTS. OKAY. IT USED TO BE A RULE OF THUMB AGES AGO. HERE IT SEEMS THAT LIKE FOR EVERY 50 STUDENTS, YOU GET ONE, YOU GET ONE STUDENT THAT NEEDED SPECIAL EDUCATION, WHICH IF YOU RUN ON AVERAGE, WHAT, A QUARTER OF A MILLION A YEAR? YEAH. RIGHT NOW WE'RE AT 12.2%. THAT'S, SO YOU THINK ABOUT THAT. MM-HMM . WE GOT 13,000 STUDENTS, AND EVERY 50 OUT OF EVERY 50 YOU'RE GONNA GET ONE. AND EVERYONE'S GONNA REQUIRE ABOUT A QUARTER OF A MILLION DOLLARS IN INVESTMENT. THAT'S A TON OF MONEY. MM-HMM . AND, AND THE FEDERAL GOVERNMENT DOESN'T GIVE YOU ENOUGH MONEY FOR THAT EITHER. THEY NEVER GET OVER THAT NUMBER. NO, NO, NO. EVEN THOUGH THEY PASSED A BILL THAT THEY SHOULD NO APPROPRIATIONS. THERE YOU GO. ANOTHER UNFUNDED BAND OR PARTIALLY FUNDED . UH, AND THEN, AND THEN THE $5,000 ITEM IS JUST A SUPPLEMENT WITHIN OUR SPECIAL EDUCATION DEPARTMENT. WE WANT TO ADD A, UH, SOME ADDITIONAL DUTIES FOR A LEAD THERE, UH, FOR CONTINUING, UH, YOU KNOW, THAT WE ARE, UH, A PARTICIPANT WITH THE NEW HORIZONS. MM-HMM . UH, CENTER. AND, UH, ALL OF OUR TUITION COMBINED, IT IS ONLY $12,000 ADDITIONAL. WE'RE VERY PLEASED [01:05:01] WITH THIS NUMBER AND WE HOPE THAT THAT HOLDS, UH, WHAT PERCENTAGE OF HOW MANY STUDENTS? I MEAN, IT'S BROKEN UP, ISN'T IT? ACCORDING TO DIFFERENT SCHOOL DIVISIONS, HOW MANY YOU CAN HAVE, RIGHT? DEPEND. DO IT. SO MANY, UH, VOCATIONALLY, I THINK WE HAVE TWO 60. IS THAT RIGHT? IT'S, IT AVERAGES ABOUT TWO, YEAH. AROUND 260. AND THEN THERE'S ALSO THE SPECIAL EDUCATION STUDENTS WITH THE CENTER FOR AUTISM. UH, BUT I'M TALKING ALL IN THE, UH, THE ADDITION IS ONLY $12,000 TO WHAT WE ALREADY PAYING. SO 260 ON THE VOCATIONAL SIDE, PARTICIPATE FROM YORK COUNTY SCHOOLS. HOW MANY WANT TO PARTICIPATE? MANY OF OUR STUDENTS DO GET IN. THERE ARE, THERE ARE WAITING LISTS FOR SOME OF OUR PROGRAMS THAT ARE MORE, UM, STUDENT INTERESTS, LIKE OUR FIREFIGHTING PROGRAM. RIGHT. THINGS OF THAT NATURE. IT WITH A QUESTION. BUT THERE IS A COST SAVINGS BECAUSE ALL OF THOSE PROGRAMS ARE VERY SPECIALTY PROGRAMS. IF WE WERE TO HOUSE THOSE IN OUR SCHOOL DIVISION, IT WOULD BE COST PREVENTATIVE FOR OUR STUDENTS TO HAVE THOSE EXPERIENCES. RIGHT. UN UNDERSTAND. BUT WE, WE, THERE'S, THERE'S MORE DEMAND THAN IS CAPACITY FOR. THAT'S WHAT GETTING WE'RE TRYING TO GET TO. WE DO COMPETE WITH THE OTHER SCHOOL DIVISIONS FOR THOSE SLOTS. AND WE, BUT WE ARE THE NUMBER ONE USER, UH, OF SCHOOL SYSTEMS. NOT REALLY IN THE NEW HORIZONS PROGRAM. WELL, THERE ARE X NUMBER OF SLOTS AND WE FILL OUR SLOTS. THE OTHERS DON'T FILL THEIR SLOTS. CAN YOU TAKE OVER SOME OF THEIR SLOTS? YES, THEY DO. SOMETIMES IN SPECIAL EDUCATION THAT CAN HAPPEN. UM, WE CAN DO THAT. BUT OFTENTIMES ONCE THEY MAKE THESE OFFERS TO STUDENTS, THEY BEGIN THEIR COURSES. AND AT THAT POINT IN TIME, YOU, YOU REALLY CAN'T BECAUSE YOUR CLASSES HAVE STARTED. AND MR. PAVICH, BY THE WAY, IS THE, UH, CHAIRMAN OF THE BOARD OF TRUSTEES FOR NEW HORIZONS ALSO. GOOD FOR YOU. . WE HAVE GRADES ALL IN. I'M SORRY. WE HAVE GREAT PRESENCE OF OUR STUDENTS AND VERIZON ALL IN WITH THE BUDGET. IT'S, UM, 4 MILLION, $60,000 IS WHAT WE PROJECTED TO PAY IN FY 27 FOR GOV SCHOOL, CTE AND SPECIAL EDUCATION. SO WE WERE PLEASED TO ONLY SEE A $12,000 INCREASE . OKAY. AND THEN SOME OTHER, UH, FOR EDUCATIONAL EXPERIENCES, UH, $10,000 ADDED, UH, FOR BAND INSTRUMENTS. UH, 10,000 FOR, UH, SUPPORT INCREASE FOR VHSL. UH, THAT'S, UH, THAT'S REFEREES AND THAT TYPE OF THING. AND THEY'VE, UH, REFEREES ARE ABLE TO COMMAND MORE MONEY 'CAUSE LESS PEOPLE ARE DOING IT. AND SO, UH, WE ARE EXPERIENCING RAISES THERE. AND THEN ADMINISTRATIVE MILEAGE. WE'VE PUT ADDITIONAL EXPECTATIONS ON, ESPECIALLY ON OUR HIGH SCHOOL ADMINISTRATORS TO TRAVEL TO AWAY GAMES NOW ALSO TO MONITOR BEHAVIOR. AND SO WE'RE HAVING TO PAY MILEAGE FOR THAT. SO IF YOU'RE GETTING AWAY WITH ONLY $10,000 EXTRA TO PAY FOR REFS, YOU'RE, YOU'RE DOING GOOD . YEAH. YEAH. AB ABSOLUTELY. ALRIGHT. UM, LET'S SEE. SO THEN JUST SOME MISCELLANEOUS, JUST KINDA LOOSE ENDS THERE. UH, WE FOUND OUT, UH, EARLIER THIS YEAR THAT OUR PHONE SYSTEM, OUR VOICEOVER INTER INTERNET PROTOCOL, MITEL MITEL IS OUT OF BUSINESS. AND SO WE ARE NOT GONNA HAVE SUPPORT FOR THAT SYSTEM. SO WE ARE, UH, IDENTIFYING A REPLACEMENT FOR THAT RIGHT NOW. WHAT'S A GOOD USE FOIA? UH, WE ALSO WOULD LIKE TO ADD MONEY TO OUR WHITE FLEET REPLACEMENT. WE STILL HAVE SOME CARS, UH, THAT, UH, WERE BUILT IN 1998 THAT WE'RE USING. AND SO WE WANT TO ADD THIS TO, LIKE I SAID, GET THINGS OFF OF THE, OFF OF THE, UH, OFF THE, UH, YEAR END AND, UH, RELIANCE AND PUT THAT IN THE OPERATING BUDGET SO WE CAN, UH, REPLACE THOSE FASTER. UH, WE HAVE A $50,000 INCREASE IN OUR GENERAL LIABILITY PREMIUM, UH, CAPITAL PROJECTS. UH, SO THIS READS WRONG. CAPITAL PROJECTS OFFICE. OKAY. WHERE MR. KILBURN IS NOW TAKING, AND THAT'S FOR SUPPLIES. SUPPLIES, I THINK, I THINK IN MY ORIGINAL THING I SAID CAPITAL PROJECTS, OFFICE SUPPLIES, WELL, PAPERS INVOLVED, BUT ALSO THERE ARE THINGS THAT HE NEEDS SOMETIMES, UH, JUST TO KEEP, KEEP THINGS MOVING. LIKE, UH, MR. KELLER, YOU GAVE ME A COUPLE OF, UH, PERFECT EXAMPLE WAS THIS WEEK AT TAB HIGH TO PUT UP THE FIELD LIGHTING. IT'S PROHIBITIVE FOR ME TO HAVE TO STOP AND GO BACK AND MODIFY A PO FOR $890. BUT I NEEDED MAPS TO PROTECT THE TRACKS SO THAT WE DIDN'T INCUR FURTHER HUNDREDS OF THOUSANDS OF DOLLARS IN DAMAGE. RIGHT? SO IF I HAVE A NOMINAL AMOUNT TO GO AND JUST PLAY WITH, KEEP THE, KEEP THE WHEELS SPINNING, KEEP THE PROJECTS MOVING, THAT'S REALLY WHAT THAT IS FOCUSED ON. UM, WE DIDN'T HAVE THAT IN THE PAST. IT WAS ALWAYS, WE HAD TO FIGURE OUT HOW TO PULL IT OUT OF THE OVERALL PROJECT PACE AND IT SLOWS US DOWN AND WE MIGHT THROW IN SOME PAPER. UH, AND THEN ALSO, THIS IS AN, AN AD A NEEDED BASIS, RIGHT? YES. LIKE IF YOU DON'T USE IT, YOU DON'T NEED IT. UH, AND THEN LEGAL SUPPORT, UH, JUST WE'RE LOOKING AT TRYING [01:10:01] TO DO SOME WAYS TO SUPPORT, UH, MELANIE, UH, FORMING OUT A LITTLE BIT OF WORK AROUND THE OFFICE WITH THE, UH, CLERICAL HELP OR SOMETHING SO THAT WE CAN KEEP HER GOING. 'CAUSE SHE, SHE, UH, SUPPORTS A LOT OF WORK IN OUR, OUR DIVISION. SO BOTTOM LINE TO RECAP, UH, YOU CAN SEE THE TOTAL FUNDS AVAILABLE, THE $9,000 OR $9 MILLION FIGURE THAT, UH, MR. BOWEN MENTIONED EARLIER. YOU SEE THE BREAKOUTS BASED ON THOSE STRATEGIC PLAN PRIORITIES. AND YOU SEE THAT THE BIGGEST DRIVER IS IN THE HIGHLY EFFECTIVE TALENT. SO THAT'S OUR SALARIES AND BENEFITS. AND, UH, AND SO THAT'S ALL ACCOUNTED FOR. THE BIG THING HERE BEING THAT WE WALK IN WITH A BUDGET GAP OF ZERO USING YOUR WORKING NUMBER. SO WE ARE NOT HERE ASKING FOR MORE LOCAL DOLLARS. ANYTHING THAT WE WOULD DO ADDITIONAL IF, UM, IF WE WERE TO GET MORE STATE FUNDING, UH, THAT WHEN I TALKED ABOUT WANTING TO INCREASE THAT NUMBER FROM THREE AND A QUARTER, THAT WOULD COME COMPLETELY FROM STATE FUNDING. THAT WOULD NOT, WE, WE DON'T, UH, WE DON'T ANTICIPATE THAT WE WOULD BE COMING BACK AND ASKING FOR ANYMORE. UH, AND SO THAT'S WHY WE'VE PREPARED THIS BUDGET THIS WAY. UM, SO ALL IN ALL, UH, WHEN YOU LOOK AT OUR COMPLETE BUDGET NOW, THIS IS OPERATING WOULD BE 200, JUST OVER $205 MILLION. AND THAT INCREASE IS SIX AND A HALF MILLION. AND THAT'S, I THINK A MODEST 3.3% INCREASE ACROSS THE BOARD. AND SO, UH, YOU KNOW, AT THIS TIME, THESE SLIDES ONLINE SOMEWHERE, UH, WE'LL, WE'LL, WE'LL BE GIVING THOSE TO YOU. SO JUST A, A BRIEF UPDATE ON 27, UM, AND THIS IS WITH THE GENERAL ASSEMBLIES, UH, PROPOSALS TO THE GOVERNOR'S BUDGET. SO THE GOVERNOR RELEASED HIS BUDGET IN DECEMBER, AND SINCE THE HOUSE HAS CONCLUDED, BUT WHAT, WHAT THE HOUSE HAS PROPOSED IS WHAT WE'RE SHOWING HERE COMPARED TO WHAT THE SENATE HAS PROPOSED, THIS IS WHAT THE, UH, THE STATE'S CALCULATION TOOL LOOKS LIKE. IT BREAKS OUT ALL THE FUNDING IN INDIVIDUAL CATEGORIES. AND SO WHAT I'M SHOWING HERE WITH THE HOUSE IS JUST WHAT CHANGE TO THE GOVERNOR'S BUDGET IS. SO HERE IN THE STANDARDS OF QUALITY PROGRAMS, THE HOUSE IS PROPOSING PROVIDING $755,000 MORE FOR SPECIAL EDUCATION ADD-ON. THAT MONEY WOULD BE REQUIRED TO BE SPENT ON SPECIAL EDUCATION PROGRAMS. MM-HMM . UM, ON THE SENATE SIDE, THEY'RE INCREASING THE, UH, PROJECTION OF SALES TAX. I GOT A TUNE OF $338,000 AND THEN ALSO A, A LITTLE SMALLER INCREASE IN THE SPECIAL EDUCATION ADD ON $147,000. THIS NEXT SLIDE IS WHERE WE SEE THE BIG DIFFERENCE. UM, SO THIS IS THE INCENTIVE AND CATEGORICAL PROGRAMS ON THIS. ON THE HOUSE SIDE, THEY'RE PROPOSING ALMOST $3.9 MILLION. AND IN ONE TIME FLEX PAYMENT, THIS WOULD, THIS WOULD BE ONLY FOR 2027. AND IT COULD BE USED FOR THINGS LIKE TEXTBOOKS. UM, FOR EVERY SCHOOL TECHNOLOGY. YES. FOR EVERY SCHOOL SYSTEM. I MEAN, YES. SO IT, IT VARIES PER SCHOOL DIVISION BASED ON YOUR AVERAGE DAILY MEMBERSHIP. MM-HMM . BUT THAT WOULD BE NOT, THAT WOULD BE THE AMOUNT FOR YOUR COUNTY BETTER THAN NOTHING. OH, THIS IS FOR JUST FOR US. YOUR COUNTY. THIS IS JUST FOR YOUR COUNTY. COUNTY. OH, OKAY. ALRIGHT. HE'S SAYING THAT NUMBER OF VALUE CHANGES FOR EACH YEAH. DIFFERENT SCHOOL DIVISION. AND THEN ON THE SENATE SIDE, SUBSTANTIAL, THERE'S, THERE'S AN, THERE'S A CHANGE IN THE, IN THE COMPENSATION SUPPLEMENT. SO THIS IS THE SENATE IS PROPOSING TO PROVIDE, UM, SOQ FUNDED POSITIONS AND SUPPORT POSITIONS WITH A 3% RAISE INSTEAD OF A 2% RAISE. SO THE GOVERNOR PROPOSED 2%, THE HOUSE ACCEPTED THAT, BUT THE SENATE WANTS TO INCREASE THAT TO 3%. AND SO IN DOING THAT, IT WOULD PROVIDE US WITH 743,000 ADDITIONAL DOLLARS ADDITIONAL. YES. GO, GO BACK. ADDITIONAL TO WHAT? TO ADDITIONAL TO WHAT THE GOVERNOR'S PROPOSED BUDGET HAS ALREADY PROVIDED 6%. SO WHAT WE'VE SHOWN YOU SO FAR IS BASED ON THE GOVERNOR'S BUDGET, THIS WOULD BE ADDITIONAL FUNDING THAT WE HAVEN'T INCORPORATED YET BECAUSE THEY HAVEN'T COMPLETED THE PROCESS. RIGHT. ALRIGHT. SO THE HOUSE SHARE IS 3.9 MILLION ON TOP OF THE 4.6? CORRECT. OKAY. ALRIGHT. SO, BUT THAT'S ONE, THAT'S ONE TIME UN UN UNDERSTAND ONE TIME MONEY. OKAY. BUT THAT'S SHOWING 2% THERE. THERE'S THE HOUSE AND THE SENATE SUPPLEMENT TO THE GOVERNOR'S PROPOSED BUDGET. YES. THOSE TWO COLUMN IS A COMPENSATION SUPPLEMENT. ONE TIME IT GETS ROLLED INTO BASIC AID IN THE FOLLOWING YEARS. OKAY. SO, SO, SO WHAT IS THE STATE OFFERING FOR PAY RAISE THIS YEAR? THEY, WELL, THE GOVERNOR PROPOSED 2%. OKAY. THE HOUSE ACCEPTED THE 2%, BUT THE SENATE IS PROPOSING 3%. AND SO, BECAUSE THE HOUSE, BECAUSE THE GENERAL ASSEMBLY DIDN'T FINALIZE A BUDGET, THAT'S WHAT THEY STILL HAVE TO NEGOTIATE. OKAY. SO, AND ON TOP OF THAT, THEN WE GET THE THREE, YOU GET TO 3.25%. SO BASED ON THE AVAILABLE FUNDING THAT WE HAVE IDENTIFIED IN OUR BUDGET. BUT THE NEW STATE REVENUE, NO. YEAH, JUST ANSWER THE QUESTION. NO, NO, NO, NO. THAT'S TO HELP FUND THE 3.25. YEAH. OH, WELL THAT'S WHAT I WANTED TO KNOW, RIGHT? [01:15:01] THAT'S ALL VARY AND EVERYTHING. I JUST WANTED, YEAH. SO THAT 3.25 INCLUDES THE STATE, CORRECT? YES, SIR. SO YOUR PROPOSED BUDGET IS BASED ON THAT 4.6. YES SIR. RIGHT? MM-HMM . AND DEPENDING UPON WHAT HAPPENS THE NEXT FEW WEEKS, YOUR PROPOSED BUDGET MAY CHANGE WHETHER YOU GET THAT 3.9 OR THAT THREE QUARTERS. OKAY. ALRIGHT. SO IT'S ALRIGHT. SO WE'RE STILL, IF YOU LOOK AT THE GOVERNOR'S BUDGET, UNDER THE COMPENSATION SUPPLEMENT, THEY PROVIDED US FOR 2%. YEP. UH, ALMOST ONE AND A HALF MILLION DOLLARS. IT, IT TAKES ABOUT 1.2 MILLION FOR 1% RAISE FOR OUR STAFF ACROSS THE BOARD. 1.2 OR 1.4. WHAT'D YOU SAY? 1.2. 1.2. AND THEY GAVE US 1.4 FOR 2%. SO FOR EVERY RAISE PERCENT RAISE WE GET OKAY. THE, BY THE STATE, THAT COUNTS TOWARDS THE VIRGINIA RETIREMENT SYSTEM. YES, SIR. OKAY. WHICH THEN THE RETIREMENT, VIRGINIA RETIREMENT SYSTEM IS PAID BY LOCAL GOVERNMENT. RIGHT? A PORTION OF IT IS, YEAH. SOME OF IT. BUT IF IT GOES UP, IT DOES. SO HOW IS THE SCHOOL PAYING SEPARATELY OR DO YOU GUYS PAY THE, IS IT OUR BILL, THE COUNTY, OR IS IT BILL FOR THE, UH, FOR THE SCHOOL? DO YOU DO, DO YOU HAVE TO, IN OTHER WORDS, OVER THE YEARS, ALL THESE PEOPLE ARE RETIRING. IS THAT PART OF YOUR, YOUR BUDGET OR IS IT PART OF OUR BUDGET? IT'S, IT'S PART OF OUR BUDGET. OKAY. SO WE, WE FACTOR IN THE EMPLOYEES SHARE OF THE EMPLOYERS SHARE OF THE VRS, WHICH IS 14.21% FOR TEACHERS. AND IT'S ABOUT SIX AND A HALF PERCENT FOR, UM, WHAT THEY CALL NON-PROFESSIONAL RIGHT. EMPLOYEES. AND THAT, THAT'S THE RATE THAT'S GOING DOWN. SO THAT NUMBER, WHAT IT TAKES $1.2 MILLION TO GIVE 1%, THAT NUMBER CHANGES A LITTLE BIT BASED ON THE PERCENTAGE IN VRS CHANGE. AND ALSO IT CHANGES AS, AS SALARIES GO UP AND IT COSTS MORE TO GIVE A 1% RAISE. IT MIGHT BE 1.25 NEXT YEAR TO PROVIDE A 1% RAISE. IS IT, IS THE ERS FULLY FUNDED NOW? UM, IT'S NOT FULLY FUNDED, BUT I WANNA SAY IT'S OVER 80% AND THEN THAT'S A, THAT'S AN IMPROVEMENT. THAT'S A BENCHMARK I FEEL COMFORTABLE WITH. OKAY. IT USED TO BE $74 BILLION IN THE WHOLE, SO I WAS JUST, I WAS WONDERING. I HAVEN'T HEARD LATELY. YEAH, BUT OKAY. 80% NOT BAD. SO WHAT I'M HEARING IS IF THE STATE CAME FORWARD WITH ADDITIONAL FUNDING, UH, THE THREE QUARTERS OF A MILLION OR WHATEVER, THERE COULD BE AN INCREMENT TO THE THREE AND A QUARTER. YES. BUT I'M ALSO GONNA TALK ABOUT SOME OTHER THINGS HERE. YES. LIKE THE 19% INCREASE IN THE, UH, THAT, THAT MIGHT MIGHT BE THE DISCUSSION MIGHT THE OTHER SHOE WAS GONNA FALL. YEAH. . AND SO, AND FINALLY IN THE LOTTERY FUNDED PROGRAMS, UM, THE, THE HOUSE PROVIDED NO ADDITIONAL FUNDING IN THIS PROGRAM. THE SENATE ON PROVIDED $94,000 IN ADDITIONAL AT RISK FUNDING AND ALSO $63,000 FOR SCHOOL BREAKFAST FUNDS. AND THAT THAT FUNDING WILL GO TO THE FOOD SERVICE FUND. SO IN TOTAL, 4.64 MILLION IS THE HOUSE PROPOSED. UM, 3.9 OF THAT IS ONE TIME FLEX FUNDING. SO ONLY LIKE 700 AND SOME THOUSAND DOLLARS IN REOCCURRING FUNDING WHERE THE SENATE IS ONE, ALMOST 1.4 OF REOCCURRING FUNDING. THE, THE PREVIOUS SLIDE HAD $46,000 FOR SCHOOL LUNCH FROM THE 4 6 5. YES. FOR, FROM THE GOVERNOR'S BUDGET. WHAT? SEE, THEY, THEY BREAK IT UP IN DIFFERENT CATEGORIES. I, I CAN'T EXPLAIN WHY THE STATE DOES WHAT IT DOES, BUT YOU CAN SEE IN THE FIRST CATEGORY ON THERE INCENTIVE, IT'S MEALS, SCHOOL MEALS EXPANSION. IT'S 48,000 AND THEN CATEGORICAL AT SCHOOL LUNCH AT 46,000. AND THEN A LOTTERY, IT'S SCHOOL BREAKFAST. SO, BUT WHAT, WHAT DOES IT COST YOU GUYS TO, TO PROVIDE LUNCHES FOR EVERYBODY THROUGH THE SCHOOL YEAR? IT'S WELL NORTH, $46,000. OH YES. OH YEAH. OH YES. THAT'S ADDITIONS. JUST THE STATE'S SMALL PORTION. RIGHT. THAT'S WHAT I'M SAYING. OUR TOTAL FOOD SERVICE FUND, UM, IS ABOUT $7 MILLION. SO MAKE SURE I UNDERSTAND THIS. SO THIS SLIDE I'M LOOKING AT UP HERE, WHEN YOU TALK ABOUT TOTAL STATE FUNDS, IS THAT THE MONEY COMING TO US OR IS THAT FOR THE WHOLE STATE? THAT'S THIS TO US. SO YOU GOT $118 MILLION FROM THE STATE. OKAY, SIR. THEY USED, THEY, I MEAN THEY'RE STILL THE NUMBER ONE FUNDING SOURCE FOR YOU GUYS. RIGHT? OKAY. SO WE, WE SPEND $7 MILLION ANNUALLY IN FOOD, FOOD SERVICES. SO WE RECEIVE FEDERAL REIMBURSEMENTS. WE ALSO RECEIVE, AND THIS IS JUST, JUST A STATE SHARE IS WHAT WE'RE SHOWING YOU. WE RECEIVE FEDERAL REIMBURSEMENTS AND WE HAVE PAID LUNCHES FROM OUR FAMILIES. OKAY. BUT THEN THE STATE BUDGET IS $46,000 OVER 13,000 KITS. WHY, WHY EVEN LET 'EM EAT CAKE CAKE'S? [01:20:01] TOO EXPENSIVE. SKITTLES. SKITTLES. SKITTLES. THE SKITTLES GETS A SKITTLE, SKITTLE, SKITTLES. OH. BECAUSE LOOKS LIKE FEDERAL, WHAT'S NOT SHOWN THERE IS THE FEDERAL REIMBURSEMENT. RIGHT. RIGHT. AND SO, UM, AGAIN, $118 MILLION WITH THE HOPE THAT WE'LL RECEIVE MAYBE A COMBINATION OF WHAT THE HOUSE AND THE SENATE HAS, UH, AS PROPOSED FOR US. BUT WE'LL FIND OUT MORE HERE IN THE NEXT MONTH. WHAT IS THE, WHAT YOU TALK ABOUT PRESCHOOL INITIATIVE, WHAT IS THE INITIATIVE? WHY DO THEY CALL IT AN INITIATIVE? IT SAYS SOMETHING SPECIAL . UM, WE ARE REQUIRED TO PROVIDE PRESCHOOL SERVICES TO STUDENTS WITH DISABILITIES WHO QUALIFY. SO THAT'S SPECIFICALLY FOR A CATEGORY OF STUDENTS? CORRECT. WE CURRENTLY HAVE, UM, RIGHT NOW IN OUR SCHOOL DIVISION, WE HAVE 142 STUDENTS ENROLLED IN PRESCHOOL. OKAY. AND WE HAVE ABOUT 127 STUDENTS ON A WAIT LIST FOR PRESCHOOL. WOW. OKAY. WOW. THAT'S A BUNCH. WELL, THAT'S WHY SUPPLEMENTAL PROGRAMS LIKE, UM, LITTLE LAW CABIN, UM, PRIMROSE ACADEMIES SURE. HELP FILL THAT, FILL THAT GAP. SO, OKAY. SO LOOKING AHEAD, UH, SO I'D LIKE TO RETURN BACK TO THAT, UH, HEALTH INSURANCE, UH, QUESTION. SO YOU'LL REMEMBER WE PUT IN A, UH, NUMBER AROUND $2.3 MILLION. UH, THAT IS A 10% PLACEHOLDER. SO WE'VE STRUGGLED HERE FOR QUITE SOME TIME, MITIGATING ANY INCREASED COSTS. AND THE FUTURE OF HEALTHCARE COSTS ARE ONLY RISING. SO WE NEED TO TAKE SOME DECISIVE ACTION TO REDUCE THOSE COSTS AND REDUCE THE BURDEN ON THE DIVISION. SO I'VE ASKED, UH, MR. BOWEN AND DR. WRIGHTS TO WORK WITH OUR HEALTH INSURANCE CONSULTANT TO BRING US, UH, A LIST OF IDEAS SO THAT WE CAN REDUCE THAT BURDEN. AND I'VE ASKED THEM TO TRY TO IDENTIFY AT LEAST $2 MILLION, UH, WHATEVER OPTIONS THAT ARE CREATED, WE WILL EVALUATE FOR OUR FINAL BUDGET AT $2 MILLION OUTTA WHAT'S THE, WHAT'S THE NUMBER TOTAL NOW? 2.3. BUT THAT ONLY GOT YOU TO 10%. OKAY. AND YOU TAKING A 19% INCREASE? WELL, THAT'S, SO YOU GOTTA COME UP WITH ANOTHER 10% IF I'M GONNA ELIMINATE IT. TOTALLY. AND I DON'T KNOW IF THAT'S POSSIBLE, BUT THAT'S, UH, WELL, YOU CAN'T ELIMINATE HEALTH INSURANCE. NO, NO. I'M SAYING TO, TO REDUCE THIS INCREASE COST. WELL, YEAH. RIGHT. SO I'M JUST ASKING FOR OPTIONS. SO WHERE'D YOU GET THE 19%? THE CONSULTANTS LOOK AT OUR SELF-FUNDED PLAN AND FELT THAT WE WERE BASED ON OUR EXPERIENCE, BASED ON USAGE. OUR USAGE, YEAH. YOU'RE GONNA NEED TO INCREASE IT BY 19%. WOW. SO WHAT HAPPENED? WHAT'S, WHAT IS, WHAT'S HAPPENED BETWEEN LAST YEAR AND THIS YEAR OR WHATEVER? THE PREVIOUS ONE? IT'S NOT JUST SINCE LAST YEAR, BUT HIGH COST CLAIMS HAVE GONE UP WHERE WE NORMALLY SEE, YOU KNOW, FIVE TO SIX HIGH COST CLAIMS. IT'S, IT'S OVER 10. AND THESE ARE FOLKS THAT OVER $300,000, UM, YEAH, THEY'RE PUSHING A MILLION DOLLARS IN INDIVIDUAL CLAIMS. DO YOU HAVE THE DEAL WORKERS' COMP OR DO YOU HAVE A PROGRAM THAT BACKS THAT UP? WE, WE HAVE, UM, A REINSURANCE POLICY THAT, THAT KICKS IN, COVERS THAT, YES. UM, ABOVE 300 INCREASE FOR OVER 300,000. AND, AND, AND THAT, THAT, THAT PREMIUM IS, WE'RE SEEING SIGNIFICANT INCREASE IN THE PHARMACY. UH, WE ALL KNOW THAT GLP ONES ARE DRIVING, LARGELY DRIVING THOSE COSTS, BUT, UM, TRYING TO CONTAIN THAT. IT USED TO BE BACK IN 2010, THIS CAME, THIS INFORMATION CAME FROM, UH, SENTARA, OUR HEALTH PROVIDER. MM-HMM . THAT POLICY WAS ABOUT 10% OF YOUR TOTAL PLAN. IT'S NOW 35%. THAT'S THE GROWTH OF PHARMACY. AND IT'S CONTINUING TO GROW. THEY PROJECTED NEXT YEAR BE CLOSER TO 50%. HOW, HOW, HOW MUCH OF THAT IS DRIVEN BY THE COST INCREASE OF THE PHARMACY PROVIDES VERSUS THE EXPANSION OF WHAT IS COVERED ON THE PHARMACY? I CAN'T GIVE YOU AN EXACT NUMBER, BUT IT, THIS, THERE'S SO MUCH THAT'S CONTRIBUTING TO IT, BUT IT IS MORE THAN JUST THE, THE PRICE HAS RISEN. WE PRO THE, WHAT, WHAT IS NOW COVERED UNDER PHARMACY IS PROBABLY EXPANDING AS WELL. YES. SO, OH, THE LIST OF FARM, THE GL PHARMACY ONES, FOR EXAMPLE MM-HMM . UM, IT'S PROHIBITED FOR SPECIFIC WEIGHT LOSS. HOWEVER, IF YOU'RE OVERWEIGHT AND THE DOCTOR CAN TIE IT TO, YOU KNOW, HEART CONDITION OR FOR DIABETES PREVENTION, IT'S EASY TO GET THE PRESCRIPTION. AND SO WE SEE THAT AS AN INCREASING, THERE'S, THERE'S THE THREE, THREE OF OUR TOP, UM, PRESCRIPTION DRUGS ARE THE GOP ONES. MM-HMM . NOW MY QUESTION IS, AFTER TAKING THE WEIGHT LOSS DRUGS, DO YOU SEE A DIFFERENCE IN THE PEOPLE WHO TAKE IT? I'VE SEEN . YES. I'VE SEEN THE IMPACTS ON IT. WHAT I THINK, WHAT I THINK SHE MEANS IS, IS DOES THAT DRIVE THAT OTHER HE SIDE EFFECTS THE LONG TERM SIDE EFFECTS WE HAVEN'T SEEN. THAT'S A DIFFICULT THING TO MEASURE. [01:25:01] WE HOPE IT'S GONNA DROP DOWN BECAUSE IF IT'S NOT DRIVING A HEALTH AT OTHER HEALTHCARE COSTS, THE EXPENSE YOU HAVE IN THAT LONG TERM IST BENEFICIAL. BUT MRS. NOLL, TO YOUR POINT, I MEAN, WE CAN ONLY TALK ABOUT THE AGGREGATE. AND WHAT WE'RE SEEING IS INCREASED PHARMACY COSTS. IF WE WERE SEEING REDUCED OTHER HEALTHCARE COSTS MM-HMM . THEN IT WOULD JUST BE ONE FOR THE OTHER. I SEE. RIGHT. WE'RE NOT SEEING IT THAT, NOR ARE WE SEEING ANYTHING CLOSE TO A ONE-TO-ONE. MM-HMM . OFFSET. IF THAT WAS THE CASE, GREAT PEOPLE ARE HAVING LESS SURGERY OR LESS OTHER TYPE OF HEALTHCARE. BUT WE'RE NOT SEEING THAT. WE, WE'VE JUST SEEN PHARMACY GO UP AND MAYBE THERE'S A LITTLE BIT ON THE OTHER, ON THE OTHER END. SO THE BOTTOM LINE, IT IS JUST MORE EXPENSIVE. SO HOW YOU, SO HOW ARE YOU GONNA DRIVE THIS THING DOWN WITHOUT LOADING UP ON THE, ON THE EMPLOYEE? WELL, THERE'S, I MEAN, THERE'S COPAY, THERE'S DEDUCTIBLE THAT'S LOADING UP ON COPAYS, LOADING UP ON EMPLOYEE. THAT THAT'S, THAT'S THE THING IS THERE'S GONNA BE PAIN ONE WAY OR ANOTHER. IS IT GONNA BE A HIGHER PREMIUM OR ARE WE GONNA HAVE CHANGES IN OUR HEALTH PLAN AND OR THE WAY IT'S ADMINISTERED? AND SO ALL WE CAN DO IS TAKE A LOOK AND SEE WHAT IS THE BEST THING THAT WE CAN DO FOR OUR EMPLOYEES AND FOR THE ORGANIZATION. 'CAUSE WE HAVE TO REMEMBER WE'RE PAYING 80 TO 85% OF THE PREMIUM. RIGHT? RIGHT. SO IT'S NOT JUST THE, THE EMPLOYEE. AND THAT INCLUDES ALL OF US THAT, THAT ENJOY THAT PLAN. BUT IF WE, WE CAN'T JUST KEEP 19% A YEAR. DO YOU HAVE VERY VARIOUS PLANS LIKE A CADILLAC PLAN TO A, A MIDDLE MINIMUM PLAN? WE HAVE TWO PLANS. WE HAVE A POINT OF SERVICE PLAN, WHICH IS YOUR TYPICAL HMO PLAN. THEN WE HAVE THE HIGH DEDUCTIBLE PLAN. I, I BELIEVE THAT WE WILL ALL BE TO A HIGH DEDUCTIBLE PLAN VERY SHORTLY IF THE COSTS CONTINUE TO RISE. LIKE THEY RISE. IS THERE A CAP ON YOUR PLAN? UH, MAXIMUM FAMILY COVERAGE DEDUCTIBLE? YEAH. IS THAT, SO ON A HIGH DEDUCTIBLE PLAN, I WANNA SAY IT'S A $5,500. IS, IS WHAT'S OUT OF POCKET CATASTROPHIC COST. I'M SORRY, $3,500 FOR AN INDIVIDUAL. UM, $6,000 FOR A FAMILY IS WHAT YOU PAY BEFORE THE FIRST HEALTH CARE. THERE'S, THERE'S NO CAP ON WHAT'S PAID IN THE EVENT OF A NO DISEASE. IT'S JUST THE OUT OF POCKET EXPENSE. SO, SO IF YOU'RE PAYING 80%, WHAT, WHAT'S IT COSTING NOW? THE TOTAL, TOTAL? WELL, IT DEPENDS ON THE PLAN AND WHAT PLAN. WELL, YOU GOT, YOU, YOU KNOW, YOU KNOW WHAT YOUR EMPLOYEE'S BUYING RIGHT NOW LAST YEAR, WHAT DID THAT COST YOU? IT'S RUNNING ABOUT 26 MILLION TOTAL. WHAT OUR PLAN IS, I BELIEVE IT'S FROM HOW MANY EMPLOYEES ARE WE TALKING ABOUT? WE HAVE ABOUT 12. 12 TO 13. 1300 ON THE PLAN. 26 MILLION. OKAY. AND THAT'S, UM, THAT'S NOT ALL COST PERCENT. I MEAN, THAT'S NOT JUST EMPLOYEES. THAT'S EMPLOYEES PLUS DEPENDENCE. WOW. SO MY QUESTION IS, YOU SAID THEY HAD 10 HIGH COST INCIDENTS, RIGHT? YES. WHAT ARE THEY AND, AND WHAT'S CAUSED THE INCREASE OF THAT CANCER? THERE'S A, THE NUMBER OF, UH, CAN CANCER IS, I THINK THE, UH, IS THE NUMBER ONE THAT WE SEE ON THE PLAN. UH, WE'VE HAD SOME TRANSPLANT, WE'VE HAD SOME MENTAL HEALTH. UM, HAS BEEN A, JUST A NUMBER OF THINGS. AND I, I DON'T THINK WE CAN SAY THERE'S A TREND LAST YEAR WE HAD A SPIKE. THAT DOESN'T MEAN THAT IT'S A UPWARD TREND ON AN ANNUAL BASIS. NO. THAT'S SOMETHING THAT VARIES. SO THE NEXT YEAR, RIGHT. YOU KNOW, EVERYTHING WITH HEALTHCARE COULD BE LOWER USAGE. BUT WE JUST HAD A PARTICULARLY TOUGH YEAR THIS YEAR. AND, AND WHEN WE SEE THESE HIGH COST CLAIMANTS, UM, THE INSURERS TYPICALLY WRAP THEIR ARMS AROUND THOSE FOLKS AND THEY TRY TO GET THEM, YOU KNOW, MANAGED CARE TO GET THEM OUT OF WHATEVER CONDITION THEY'RE IN THAT'S CAUSING THE INCREASE AND, AND COST. SO WHETHER, WHETHER IT'S, UM, YOU KNOW, SOME HOME HEALTH, UM, SERVICES AS OPPOSED TO HOSPITAL SERVICES AND THE LIKES. SO THE BOTTOM LINE IS WE WANT TO TAKE A HARD LOOK AT IT. SURE. SEE WHAT OUR CHOICES ARE BECAUSE IT, IT, IT, YOU'VE GOT TO DEAL WITH IT ONE WAY OR ANOTHER. OUR EMPLOYEES ARE GONNA FEEL THE PAIN ONE WAY OR ANOTHER. IT'S GONNA REQUIRE HARD CHOICES. WE HAVE TO MAKE SOME CHA CHOICES. 'CAUSE IF THIS CONTINUES AS IT PREDICTABLY WILL, THEN UM, WE CAN'T SUSTAIN IT. AND YOU ALL KNOW IN A BUDGET, A BUDGET IS A ZERO SUM GAME, RIGHT? MM-HMM . SO IF YOU'RE GONNA PAY MORE IN INSURANCE, YOU'RE GONNA NOT BE ABLE TO PAY, UH, THE, THE, UH, COMPENSATION INCREASES THAT YOU WANT TO MAKE OR WHATEVER ELSE IT IS IN THE BUDGET. MM-HMM . MM-HMM . SO DON'T YOU KIND OF PUT THOSE THOUGH, UNDER SALARY RELATED COSTS? IT IT, IT IS. BUT I'M JUST SAYING FOR, WELL, THAT'S ALL PART OF THE SALARY, RIGHT? IF THAT GETS TO BE BIGGER, THEN YOU CAN'T AFFORD THE RAISES IN REAL DOLLARS THAT PEOPLE TAKE UP. WELL, THE THE POINT IS THAT IF YOU WANT TO BE INSURED, THAT'S OKAY. THEN YOU WANT BE, YOU GOTTA BE EMPLOYED. RIGHT? RIGHT. [01:30:01] I MEAN, I'M NOT, I'M NOT BEING HARD NOSED ABOUT IT. BUT THE POINT IS THAT SALARY RELATED COSTS ARE A BIG HUNK OF, OF THE COSTS THAT A LOT OF EMPLOYEES NEVER ACTUALLY SEE. THEY MAY FEEL IT THEY'RE AT ONE TIME OR ANOTHER, BUT MOST FOLKS THINK, OKAY, WHAT DOES MY PAYCHECK, WHAT DOES THIS SHOW ME? CAN I GO BUY A NEW CAR, GO A TRIP, OR DO SOMETHING LIKE THAT? BUT ALL THAT, YOU KNOW, INSURANCE STUFF THAT EVERY, YOUR RETIREMENT STUFF AND YOU CAN ADD IT UP, THAT'S A HUNK OF CHANGE. SO I'M JUST SAYING THAT, YOU KNOW, I DON'T SEE 'EM AS TWO SEPARATE ITEMS. I SEE 'EM ACTUALLY AS ALL PART OF THE THE EMPLOYMENT PACKAGE. RIGHT. WELL, BECAUSE A LOT OF EMPLOYEES NOW ARE NOT PAYING ANYTHING. I MEAN, THEY'RE JUST SAYING, YOU COME IN HERE, ESPECIALLY FOR MILITARY RETIREE MM-HMM . YOU COME IN AND HEY, YOU'RE ON MILITARY, YOU KNOW, YOU'RE ON, UH, TRICARE, TRICARE, STUFF LIKE THAT. AND SO THEY DON'T HAVE THE, THEY DON'T DEAL WITH THAT COST. NO, I GET WHAT YOU'RE SAYING. I'M JUST SAYING FOR EVERY DOLLAR ADDITIONAL AND WE SPEND HEALTHCARE, IT'S LESS DOLLARS WE CAN PUT TOWARDS COMPENSATION. WE UNDERSTAND THAT. SO WE'RE GONNA TAKE A LOOK AT THAT. UM, WE ALSO ANTICIPATED, YOU KNOW, WE HOPE THAT THERE'S GONNA BE ADDITIONAL FUNDING FROM THE STATE IN THE FINAL BUDGET. AND WE MAY HAVE, UH, SOME ADDITIONAL REQUESTS AND THEY, YOU KNOW, I DO WANT TO FOCUS PRIMARILY ON COMPENSATION AND INCREASING RESERVES FOR OUR SUSTAINABILITY. THIRD, UH, MR. HORO, UH, REFERENCED THIS EARLIER. WE'RE SEEING LEGISLATIVE ACTIVITY IN RICHMOND. THAT IS, YOU DID HAVE TO BRING THAT UPDATE CONCERNING, WE WILL PROBABLY BE RECOMMENDING IT WITH EXTRA DOLLARS, SOME PLACEHOLDER AMOUNTS TO OFFSET ANY ADMINISTRATIVE COSTS THAT WE ANTICIPATE IF COLLECTIVE BARGAINING IS SIGNED INTO LAW. UH, WE'LL DEFINITELY HAVE INCREASED HR AND LEGAL COSTS THAT ARE ASSOCIATED WITH THAT. WE ALSO, I KNOW THAT FAMILY LEAVE IS STILL, UH, ALIVE UP THERE. AND THAT WOULD INCLUDE A, A PREMIUM, RIGHT? THAT WOULD BE LIKE A HEALTH INSURANCE. NOT HEALTH INSURANCE, BUT LIKE A, UM, EMPLOYER AND EMPLOYEE PREMIUM. SO WE WOULD PAY A PREMIUM INTO THAT. SO WE WOULD HAVE TO COVER THAT COST INTO A, BUT INTO WHAT WOULD YOU PAY IT INTO? INTO A STATE FUND? UM, AND THEN THAT WOULD GIVE 'EM WHAT? WELL, IT'S GONNA BE MANAGED BY THE VIRGINIA EMPLOYMENT COMMISSION AND WE HAVEN'T SEEN THOSE DETAILS. WE DON'T KNOW WHAT THE PREMIUM MIGHT EVEN BE, BUT WHAT'S IT GONNA PROVIDE? 13 WEEKS? 13 WEEKS OF VACATION. FMLA, 13 WEEKS OF FMLA. CORRECT. FAMILY LEAVE USED TO BE SIX, NOW IT'S GONE TO 13TH. SO, UH, MATERIALS AT 52. SO YEAH. SO WE HAVE TO ANTICIPATE THAT IF THAT ENDS UP, UH, MAKING IT TO THE GOVERNOR'S DESK AND SHE SIGNS IT, UH, SOCIAL STATE. AND THEN THE LAST THING, WE ALSO, UH, PLAN TO PUT A PLACEHOLDER IF THE FUNDS ARE THERE, UH, FOR LACROSSE, UH, UH, IN CASE OTHER FACTORS ALSO ARE RESOLVED, UH, THAT LEAD TO THAT BECOMING A-V-H-S-L SPORT, UH, THAT WOULD, THAT IS A BIG TICKET FOR, UH, ONE TIME FUNDS TO ESTABLISH. BUT ONLY $50,000 IS ESTIMATED AS A RECURRING COST. UH, BUT WE ALSO HAVE SOME OTHER THINGS THAT HAVE TO BE WORKED OUT THERE. IF, UH, WE WOULD, IF THE MONEY IS THERE, WE WOULD PLACE IT THERE AS A PLACEHOLDER. AND THEN IF THEY DIDN'T QUALIFY IT, THEN WE WOULD JUST RE UH, REVERT IT BACK TO ONE OF OUR, OUR, UH, OUR FUNDS OR RESERVE FUNDS. SO WITH THAT, I'LL GIVE IT TO MR. UH, SO HOW WAS SO KIND OF CURIOUS, NO ONE SAID ANYTHING ABOUT THIS, BUT WE GO TO A, A, UH, ANNUAL ASSESSMENT, YOU KNOW, SO WE DO IT EVERY YEAR, EVERY TWO YEARS. SO WE, FROM OUR PERSPECTIVE, AT LEAST I THINK IT IS, FROM OUR PERSPECTIVE, WHAT WE'RE SEEING IS THAT THE COSTS THAT GO UP, PEOPLE UNDERSTAND, OR YOUR REQUESTS THAT GO UP WILL UNDERSTAND BETTER WHAT YOUR, YOU KNOW, HOW OUR MONEY IS BEING SPENT, YOU KNOW, AND TAXPAYERS NOT OUR, OUR MONEY, BUT IT'S TAXPAYER MONEY. WE'LL SEE HOW IT'S SPENT. HAVE YOU GIVEN ANY THOUGHT TO THE IMPACT THIS MIGHT HAVE ON YOU GUYS? IT CAN'T BE BUSINESS AS USUAL. I MEAN, 'CAUSE YOU, YOU KNOW, I SHOULDN'T, IT'S GONNA, I MEAN, WE CAN COME IN AND NEGOTIATE AND ALL THAT KIND OF STUFF, BUT IT'S, BUT WE'RE GONNA DO ASSESSMENTS. WE'RE GONNA BE LOOKING AT 'EM EVERY YEAR. AND THAT'S, AND EVERY YEAR THEN YOU'RE GONNA, WE'RE GONNA SEE, YOU KNOW WHAT THE, THEY WE'RE NOT CHANGING THE TAX RATE. TAX RATE'S GONNA STAY THE SAME. SO THAT'S GONNA LIMIT WHATEVER WE GET. THAT'S GONNA, IF HOUSES GO UP, THERE'LL BE MORE MONEY. IF HOUSES GO DOWN, THERE'LL BE LESS MONEY. UH, WE HAVEN'T LOOKED PAST THIS BUDGET HERE RIGHT NOW. NO. YOU MIGHT WANNA GIVE US SOME THOUGHT, I DON'T KNOW, ONE YEAR AT A TIME AT THIS POINT WE'VE UH, GET THROUGH THIS BUDGET. WELL, THEY NEED TO BE THINKING ABOUT IT BECAUSE I DON'T KNOW, I DON'T KNOW WHAT THE IMPACT'S GONNA BE ON 28. TALKING ABOUT STARTING IN 2028. SO THAT'S NOT THAT FAR DOWN THE ROAD ANOTHER YEAR. YEAH, WE'VE BEEN TALKING ABOUT IT. I WOULD SAY I'VE SEEN, YEAH, WE ARE, SCHOOL DIVISIONS AND LOCALITIES HAVE REVENUE SHARING AGREEMENTS AND THE NEGATIVE IMPACT IT HAS, UM, IT WORKS GREAT WHEN THE ECONOMY'S GREAT BECAUSE THE LOCALITY GETS MORE MONEY, GETS A PERCENTAGE OF IT FIXED. BUT WHEN IT GOES SOUTH, THEY HAVE A FIXED LOSS TO THAT TOO. AND THOSE, THOSE LOCALITIES OR THOSE SCHOOL DIVISIONS HAVE SUFFERED MORE DURING RECESSION PERIODS. SO, UM, I THINK WHAT WE DO HERE IN YORK COUNTY WORKS WELL. WE COME IN TO ASK, WE, WE UNDERSTAND YOUR NEEDS, Y'ALL UNDERSTAND OUR NEEDS. WE ALSO LOOK [01:35:01] VERY HARD AT WHAT THE STATE IS DOING FOR US. AND I GET BACK TO THAT LOCAL COMPOSITE INDEX. WE'VE BEEN NINE, 18 YEARS, BUT NON BIANNUAL PRO UH, BUDGET PROCESS WHERE WE'VE SEEN THAT LOCAL COMPOSITE INDEX DECREASE. AND THAT'S BEEN TO OUR BENEFIT. WHEN THAT CHANGES IS WHEN, WE'LL I THINK HAVE SOME VERY DIFFICULT CONVERSATIONS ABOUT FUNDING. MM-HMM . WELL, I THINK PROBABLY WHAT TOM IS SAYING IS TO START GETTING IN YOUR MIND, HOW DO YOU MAKE UP THE GAP? BECAUSE WHAT WE'RE LOOKING AT DOING IS HAVING A SURPLUS, UH, FUND THAT WILL MAKE UP THE GAP ON THE OFF YEARS. AND SO WHEN YOU HAVE, LET'S JUST SAY YOU HAVE AN EXTRA MILLION DOLLARS, DON'T GO FIND A PLACE TO PUT IT. YOU MIGHT HAVE TO PUT THAT, YOU MIGHT HAVE TO PUT THAT IN SAVINGS FOR A DOWN YEAR. SO I THINK THAT'S WHAT TOM'S SAYING. YOU START THINKING THROUGH. WELL, AND THAT'S A GOOD POINT. I ACTUALLY WASN'T EVEN THINKING ABOUT THE SAVINGS. BUT THAT'S SOMETHING, YOU KNOW, 'CAUSE WE HAVEN'T EVEN GOTTEN, WE'RE SORT OF GETTING THERE WE'RE, WE HAVE NOT REALLY STUDIED IT EITHER. BUT THAT'S THE POINT. PUT THE MONEY ASIDE AND SHEILA'S BEEN BRINGING THIS UP FOR, YOU KNOW, YOU GOTTA HAVE SOME FLEX RAINY DAY FUND. YEAH. YOU GOTTA HAVE A FLEX. WE CAN'T COME BACK EVERY YEAR AND KEEP, YOU KNOW, SQUEEZING BLOOD OUT OF THE TERM IF IT'S NOT THERE. SCHOOLS CAN DO THAT. YEAH. WE'RE, WE'RE LIMITED IN THAT PROSPECT. THERE'S SURPLUS. WE HAVE YOU VOTE ON THEIR SURPLUS EVERY YEAR. IT COMES BACK TO THEM. THEY BUY TECHNOLOGY, BUSES, BOOKS, THOSE KINDS OF THINGS WITH IT. WELL, WE GIVE IT BACK TO 'EM AND THEY SPEND IT. THAT'S WHAT WE DO. SO WE DON'T WANT 'EM TO SPEND IT. WE KEEP IT , BUT IT'S ONE TIME. THAT'S WHAT LOOKING, LOOKING FOR . BUT I, I THINK THAT THE REVENUE STABILIZATION FUND WAS CREATED WITH THE PURPOSE OF HAVING SOME SORT OF RESERVE FUND FOR THE SCHOOL DIVISION. YES. UM, SO WE HAVE UTILIZED THAT FOR NON-SCHOOL RELATED, I MEAN NON OPERATIONAL THINGS. WE'VE, UH, USED IT FOR CIP AND WE USED IT FOR TECHNOLOGY, RIGHT? MM-HMM . SO WE'VE USED IT BECAUSE WE'VE HAD A SIGNIFICANT BALANCE IN THERE, BUT WE MIGHT NEED TO RETHINK ABOUT USING IT FOR THOSE ITEMS TO JUST TREAT IT AS MORE OF A SAFETY NET, UM, RIGHT. DURING THOSE DOWNTURNS. THAT'S, THAT'S THE POINT I WAS MAKING. JUST START THINKING THROUGH THAT. 'CAUSE WE'RE SAYING 2028 IS WHEN WE'RE THINKING WE COULD INSTITUTE THAT. I'M GONNA SUGGEST WE MOVE ON TO THE CAPITAL AREA NOW. ALRIGHT. WE'LL NEVER GET THROUGH IT. THANK YOU. SO MR. BOWEN HAS ONE MORE SLIDE. WELL, I WAS JUST QUICKLY, THE GENERAL ASSEMBLY'S RECONVENING ON APRIL 22ND TO, TO, UM, FOR THE VETO SESSION. UH, APRIL 23RD IS THE SPECIAL SESSION. AND WE UNDERSTAND THIS IS GONNA BE A QUICK SESSION. UM, IT MAY HAVE ALREADY COME TO AN AGREEMENT ON, ON, ON THE FINAL BUDGET. THEY'RE JUST WAITING FOR THIS SPECIAL SESSION. AND THEN OF COURSE THE BOARD OF SUPERVISORS WILL CONSIDER SCHOOL BOARD OF BUDGET, OUR SCHOOL BUDGET, AND CIP AND THEN MAY 18TH WILL TAKE THOSE FINAL CHANGES FROM THE STATE AND FROM THE LOCAL GOVERNMENT TO OUR BOARD. AND THAT JUST CONCLUDES OUR PRODUCT. ALRIGHT. SO YES. UH, SO WE'LL SHIFT NOW TO TAB HIGH SCHOOL UPDATE. UH, SO JUST TO REMIND EVERYBODY, TAB HIGH WAS BUILT IN 1972. UH, IT WAS RENOVATED LAST IN 1997, WITH THE EXCEPTION OF THE, UH, ADDITION OF THE AUXILIARY GYM IN 2005. SO DUE FOR RENOVATION ARE THE ROOF, THE ENTIRE HVAC SYSTEM, UH, UPGRADING TO LED LIGHTING, WHICH IS WHAT WE DO EVERY TIME WE TOUCH A BUILDING. ALSO WORKING IN SOME SMALLER PROJECTS THAT WE HAVE, UH, FUNDED FOR OTHER SCHOOLS LIKE LOCKER ROOM RENOVATIONS AND LEARNING COMMONS UPGRADES TO THE MEDIA CENTERS. AND I ALSO WANNA REMIND YOU AS WE LOOK AT THIS, THAT, UH, TAB HIGH SCHOOL IS A SHELTER FOR THE COMMUNITY. SO WE ALSO WANT TO MAKE SURE THAT IT IS, UH, UP TO SNUFF THERE AS FAR AS ENERGY USAGE AND FOR, UH, USABILITY IN A SHELTER SITUATION. SO AT THIS POINT, I'LL ASK MR. KILBURN TO, UH, TAKE THE CON HERE AND, UM, TALK YOU THROUGH THIS CHAIR MEMBERS OF THE BOARD. THANKS FOR HAVING ME. UH, INTERESTING FACT FOR YOU IS I WAS A MEMBER OF THE LAST CLASS TO GO THROUGH THE ORIGINAL BUILDING OF HAI, LIVED THROUGH TRAILER CITY, GRADUATED, AND NOW GET TO LEAD THE RENOVATION THIS TIME AROUND. THAT'S NEAT. SO IT'S A LITTLE BIT FUN FOR ME. UM, AND I'M STILL A RESIDENT OF TAB, SO MY KIDS WILL GO THERE TOO. SO I'M GONNA WALK YOU THROUGH THE ORIGINAL PROPOSAL FROM THE ARCHITECTS WHEN WE DID THE RFP. AND THEN I'M GONNA HIGHLIGHT FOR YOU A LOT OF THE DESIGN AND COST SCRUTINY THAT WE'VE DONE OVER THE PAST COUPLE OF MONTHS. UM, SO WE'RE GONNA SHOW, THIS IS THE ORIGINAL PROPOSED FLOOR PLAN. AND I'LL WALK YOU THROUGH EACH OF THE HIGHLIGHTED ORANGE SECTIONS. SO DOWN IN THE CENTER OF THE BOT OF THE BOTTOM OF THE SCREEN IS THE PROPOSED NEW FRONT ENTRANCE. SO THAT INCLUDES AN ADMIN AREA, A LARGE CLASSROOM OR MEETING SPACE THAT WE CALL A KIVA, SOME NEW GROUP RESTROOMS AS WELL AS A CONFERENCE ROOM AND SOME STORAGE ROOMS IN A MECHANICAL ROOM, UH, TO THE VERY FAR RIGHT ON THE BOTTOM. THIS IS A TWO STORY EDITION. SO ABOVE THAT IS THE LEARNING COMMONS, WHICH DR. CARROLL [01:40:01] MENTIONED. WE HAD DELAYED THAT TO MAKE PART OF THIS BIGGER PROJECT. A MAKER SPACE, A WORK ROOM FOR THE LIBRARY MEDIA SPECIALISTS, ANOTHER CONFERENCE ROOM. MM-HMM . AND THEN AS PART OF THE LEARNING COMMENTS, YOU GET THOSE COLLABORATION STATIONS AND THE OPEN FLOOR SPACE THAT EN ENCOURAGE THE KIDS AND THE TEACHERS. WHERE IS THAT GONNA BE ON THE BUILDING? THE, SO THE VERY FRONT CENTER, BUT I DO HAVE A SLIDE THAT'LL PUT THAT IN PERSPECTIVE FOR YOU OF, OF WHAT IT LOOKS LIKE NOW AND WHAT THAT LOOK LIKE IN THE FUTURE. OKAY. WHAT ARE YOU GONNA PUT IN THE MAKERSPACE? UH, GLOW FORAGES, 3D PRINTERS. UM, ALL KINDS OF, UM, JUST TECHNOLOGY KIND OF PROJECTS. UM, AND THEN THE LIBRARY MEDIA SPECIALISTS AS WELL AS CTE TEACHERS WILL TAKE KIDS IN THERE TO DO ANY KIND OF PROJECTS THEY'RE LOOKING TO DO. UM, THERE, THERE'S SINKS, THERE'S COUNTERTOPS, THERE'S PULL DOWN CORD REELS. SO IT'S WHATEVER THEY CAN COME UP WITH. OKAY. STUFF. YEP. GOOD STUFF. STUFF. UM, A LITTLE BIT TO THE LEFT OF THAT, THE DARKER ORANGE, BUT ALSO ON THE BOTTOM OF THE SCREEN YOU'RE GONNA SEE SIX RELATIVELY SAME SIZE SQUARES. UH, THE FOUR THAT ARE IN THE CENTER OF THAT IS THE EXISTING LOCATION OF THE LIBRARY. SO BY MOVING THAT TO THE NEW LEARNING COMMONS, WHICH IS ON THE SECOND FLOOR, WE'RE ABLE TO CREATE FOUR ADDITIONAL CLASSROOMS OUT OF THAT SPACE. MM-HMM . UH, DIRECTLY ABOVE THAT YOU'LL SEE TWO RECTANGLES, THOSE THAT IS WHERE OUR EXISTING KIVA IS LOCATED. UM, AS WE MOVE INTO THE NEXT PLAN, YOU'LL SEE THAT WE'RE NOT GONNA DO ANYTHING IN THAT SPACE. BUT THAT WAS AGAIN, A NET ADDITION OF TWO CLASSROOMS. AND FOR THE BOARD MEMBERS, A KIVA IS OUR MULTIPURPOSE ROOM. MM-HMM . UM, DIRECTLY ON EITHER SIDE YOU SEE TWO, UH, ORANGE RECTANGLES VERTICALLY. THOSE ARE EXISTING GROUP RESTROOMS AND THEY'RE SCHEDULED TO GET A A A MAKEOVER. IT'S NOT A COMPLETE WORK, IT'S NOT A EXPANSION, BUT IT'S ALL NEW FIXTURES. A REFRESH, UH, IF WE GO TO THE TOP RIGHT, THE BRIGHTER ORANGE SECTION IS AN EXPANSION OFF OF THE GYM ENTRANCE AND THAT INCLUDED THE PROPOSED GEOTHERMAL MECHANICAL ROOM. MM-HMM . A SECURITY VESTIBULE, MORE GROUP RESTROOMS, UH, AN ATHLETIC DIRECTOR'S OFFICE, A DEDICATED SPACE FOR OFFICIALS TO GO AND CHANGE WHEN THEY'RE COMING IN FOR WHETHER IT'S BASKETBALL, UH, WRESTLING, ANY KIND OF ATHLETIC EVENT WHERE THEY NEED A SPACE TO GO. UM, I THINK I ALREADY SAID ABOUT OTHER GROUP RESTROOMS. OH, AND A CONCESSION STAND. THEN AS DR. CAROL SAID, WE ALSO HAVE BEEN DELAYING THE RENOVATION OF THE LOCKER ROOMS. SO THE DARKER ORANGE SECTIONS AT THE TOP OF THE SCREEN, BOTH ON THE RIGHT AND THE LEFT IS SHOWING THE RENOVATION OF THOSE LOCKER ROOMS AT THIS TIME. SO I'M GONNA JUMP TO SHOW YOU WHERE WE'VE REALLY SCRUTINIZED AND I WANT TO EMPHASIZE AND GIVE SOME CREDIT HERE BECAUSE I WORK WITH A GREAT GROUP OF PEOPLE. UM, AND MICHAEL AL, WHO'S HERE IN THE ROOM WITH US, HAS BEEN LEADING THE CHARGE, UM, IN THE TRANSITION BETWEEN MARK AND MYSELF. UM, AND SO WE HAVE BROUGHT A LOT OF PEOPLE IN AND WORKED AS A TEAM TO COME UP WITH THESE OPTIMIZATIONS AND REDUCE THE OVERALL COST OF THE PROJECT. THAT'S A QUICK QUESTION THOUGH. HOW DO YOU, HOW DO YOU DO THE LOCKER ROOM CHANGES? UM, 'CAUSE YOU'RE NOT GONNA GET THAT DONE ACROSS A COUPLE MONTHS OF THE SUMMER. SO MICHAEL'S ACTUALLY LED ALL OF THE LOCKER ROOM CHANGES THAT WE'VE DONE IN THE PAST COUPLE OF YEARS, AND HE'S BEEN ABLE TO ACCOMPLISH 'EM DURING THE COURSE OF THE SUMMER. UM, THERE ARE CERTAIN THINGS THAT WE CAN PHASE IN AND DO THEM OVER BREAK CERTAIN THINGS THAT WE CAN DO. LIKE IF HE'S DOING BLOCK WORK AND RIPPING OUT THE LOCKERS, THAT'S OBVIOUSLY A, A SUMMER ENDEAVOR. YEAH. AND I, AND WE HAVE, UH, BEEN ABLE TO WORK WITH THE SCHOOLS TO GET A COUPLE WEEKS START, YOU KNOW, EARLY PE DIDN'T DRESS OUT AND THEY STAYED, STAYED OUT IN THE GYM, BUT, AND THE ONLY ONE WE RAN INTO TROUBLE WITH WAS YORKTOWN MIDDLE SCHOOL AND THAT'S BECAUSE THEY WERE HAVING SOME FOUNDATION ISSUES THAT RAN US INTO THE FIRST THREE OR FOUR WEEKS OF SCHOOL. SO, UM, EVERYTHING ELSE WE'VE BEEN ABLE TO, TO HANDLE IT. OKAY. ALRIGHT. SO THIS IS THE SAME ORIENTATION. SO CENTER AT THE BOTTOM OF THE SCREEN, ALTHOUGH I DON'T HAVE EVERYTHING HIGHLIGHTED IN ORANGE, WE MADE A FEW A, A VERY SMALL CHANGE, BUT IT WAS GEARED TOWARDS RELOCATING THE ENTIRE MAIN OFFICE SUITE. SO THAT'S YOUR PRINCIPAL ONE AP ALL OF YOUR, UH, ADMINISTRATIVE ASSISTANTS, ATTENDANCE SECRETARY, ALL TO THE FRONT OF THE BUILDING MM-HMM . SO WE DID TAKE OVER ONE CLASSROOM THERE, BUT THAT MEANT WE COULD REPURPOSE WHERE THEY EXIST, WHICH IS DIRECTLY ABOVE IT IN THE CENTER OF THE SCREEN, THE, THE BRIGHT BLUE COLOR. AND BY RELOCATING THEM, THEN WE GET TO CREATE THREE CLASSROOMS INSTEAD OF THE TWO THAT WE WERE GONNA DO OUT OF THE EXISTING KIVA. SO IT'S STILL A NET SIX AD, UM, EVEN THOUGH WE'RE CREATING THE THREE IN THE CENTER. UH, SO NOTHING CHANGES IN TERMS OF WHERE THE EXISTING LIBRARY IS STILL A FOUR CLASSROOM AD, THE GROUP RESTROOMS. MM-HMM . STILL A MAKEOVER. WHAT REALLY COMES INTO PLAY HERE IS OUR FOCUS ON THE GYM ENTRANCE AND THE GEOTHERMAL SYSTEM. UHHUH . SO IF YOU'LL NOTICE THERE'S NO EXPANSION TO THE RIGHT MM-HMM . BY GOING GEOTHERMAL AND RELOCATING OUR PUMP ROOM TO A MORE, UH, OPTIMIZED LOCATION. WE DIDN'T NEED TO BUILD OUT FROM THE BUILDING IN THAT DIRECTION. THEY WERE ADDING SPACES BECAUSE WE NEEDED TO BUILD OUT FOR GEO ON THAT SIDE. MM-HMM . WE WERE ACTUALLY ABLE TO BRING EVERYTHING THAT WAS PROPOSED, THE RESTROOMS, THE UM, UH, SCHOOL OFFICIALS A CONCESSION [01:45:01] STAND ALL BACK INSIDE THE ORIGINAL ENVELOPE OF THE BUILDING. SO WE'RE CUTTING OFF, I THINK IT'S 15,000 SQUARE FEET THAT WE WOULD'VE HAD TO PAY. AND JUST BY MOVING THAT GEOTHERMAL ROOM AND BRINGING EVERYTHING BACK IN, WE'RE PROJECTING THAT BETWEEN A THREE AND $4 MILLION SAVINGS. MM-HMM . SO THE GRAY YOU SHOW IS ALL THE GEOTHERMAL. SO THE GRAY IS ACTUALLY ALL, UH, OPEN PARKING SPACE. THE BO THE BOTTOM OF IT, UH, WILL ACTUALLY BE THE LOADING YARD. UH, AND WE'RE REALLY OPENING UP THE SPACE. YOU'LL SEE IT IN THE RENDERING, UH, A LITTLE BIT LATER. UH, IT'LL BE THE LOADING ON THE BOTTOM SIDE OF IT. AND THEN ON THE TOP SIDE OF IT, THE, THE ORANGE RECTANGLE YOU CAN BARELY SEE IS ACTUALLY US RELOCATING THE DUMPSTERS AWAY FROM THE, THE WALKING PATH IN. MM-HMM . UH, PUTTING UP AN ENCLOSURE AROUND THEM TO, YOU KNOW, BEAUTIFY THE SPACE BUT STILL KEEP THE FUNCTIONALITY. THE RED HASH MARKS IS, SO YOU'RE ENVISIONING A, A TRASH TRUCK DRIVING IN THE LOWER ENTRANCE UP TO THE DUMPSTERS AND THEN LEAVING THROUGH THE UPPER ENTRANCE. AND THEN IF WE DECIDE TO DO IT, WE COULD ADD HANDICAP SPACES AT THE, AT THE UPPER SECTION THAT GIVES BETTER ACCESS, YOU KNOW, FOR ATHLETIC EVENTS OR ANYTHING TAKING PLACE IN THE SCHOOL. SO ON THE TOP RIGHT, UM, THAT'S SOMEWHERE NEAR IS WHERE THE VOTING PRECINCT IS. WE STILL GONNA HAVE SPACE UP IN THERE FOR THAT. SO DO THEY VOTE IN THE GYM? WELL, SO THIS WOULD BE THEIR, THEIR POINT OF ACCESS. THEY WOULD EITHER, THEY WOULD ACTUALLY COME THROUGH THE GYM ENTRANCE NOW. YEAH. SO RIGHT NOW THAT'S A LOADING DOCK FOR US. SO WHAT WE'RE DOING IS IMPROVING THAT WHOLE ENTRANCE TO BE A SECURITY VESTIBULE RAISING THE FLOOR UP. SO THEY WOULD BE ENTERING THROUGH A SECURE ENTRANCE AND THEY WOULD PARK WHERE THEY NORMALLY PARK. OKAY. YEAH, THAT'S A LITTLE DIFFERENT. 'CAUSE YOU SEE THAT LITTLE ORANGE SQUARE ABOVE THE, WHERE YOU GOT THE ENTRANCE NOW THAT, UH, THAT'S UH, RIGHT UP IN THERE. ONE WHERE THEY COME IN THIS ONE? YEAH. RIGHT ABOVE. THAT'S WHERE THEY COME IN. THERE'S SOME BATHROOMS UP THERE. SO THEY'RE COMING IN THIS THEN YEAH, THIS IS THE SIDEWALK INTO THE AUXILIARY GYMNASIUM. THERE'S NO CHANGES THERE. THERE CHANGES. OKAY. THAT'S IT. UM, AND AS DR. CAROL POINTED OUT, THIS IS A SHELTER. SO US ADDING THOSE GROUP RESTROOMS THERE, IT MEANT THAT WE DIDN'T HAVE TO EXPAND TWO OTHER SETS OF RESTROOMS. THERE'S A SET OF RESTROOMS ON THE LEFT HAND SIDE OF THE GYM THAT SERVICES ATHLETIC EVENTS IN THE CAFETERIA. AND THERE'S A SET OF RESTROOMS THAT'S ON THE BACKSIDE OF THE AUDITORIUM THAT'S FOR THE VOCATIONAL HALLWAY. AND SOMETIMES, UM, YOU KNOW, DRAMA EVENTS AT NIGHT, WE'RE ADDING A SET OF RESTROOMS AT THE BACK, NEAR THE GYM ENTRANCE AND IN THE FRONT ADDITION. SO IT'S STILL SERVICING BOTH OF THOSE, BUT ALSO GIVING YOU EXTRA, UH, FACILITIES FOR THAT SHELTER WITH A HANDICAP BATHROOM. IT, THEY'RE ALL OF THEM. THEY'RE ALL, SO BOTH OF THE NEW ONES ARE AADA A COMPATIBLE AND INCLUDE A FAMILY RESTROOM IN BETWEEN BOTH SETS OF THE GROUPS GROUP RESTROOMS. WHAT, WHAT'S THE POPULATION ON A TYPICAL SCHOOL DAY FOR HAI? THAT'S ABOUT 1200. 1200. 1200. AND HOW, HOW MANY PEOPLE CAN THE SCHOOL ACCOMMODATE IN AN EMERGENCY AS AN EMERGENCY SHELTER? SAME NUMBER OR MORE OR LESS? NO, NO. I, BUT I DON'T KNOW THAT NUMBER. I'D HAVE TO GET WITH SEAN SEGERBLOM ON THAT. I, I DON'T THINK WE'VE EVER TALKED ABOUT. WELL, AND THEY DON'T, THEY DON'T USE THE ENTIRE SCHOOL. THEY TYPICALLY TRY TO KEEP IT TO THE CAFETERIA, THE GYMNASIUM, THE LOCKER ROOMS AND THEN THIS NEW AREA, ISABEL AND ALSO THE WISE GONNA HAVE IT RIGHT AT A HUNDRED PEOPLE. I JUST WANNA MAKE SURE THIS, THE NEW HVAC WE'RE PUTTING IN THERE WILL ACCOMMODATE PEOPLE IN AN EMERGENCY SITUATION AND WELL, WHERE IS THE CAFETERIA HERE? IS IT, UH, COME THROUGH THE IN YEAH, SO IT'S IN THE SAME SPOT, RIGHT? YEAH. SO THIS IS THE BIG OPEN. VERY, THIS IS THE MAIN GYM. THIS IS THE CAFETERIA. MM-HMM . THIS IS THE AUDITORIUM. THAT'S THE AUDITORIUM. OKAY. YES. AND THAT OPEN SPACE TO THE LEFT OF THE AUDITORIUM IS JUST STILL A HALL AND WE CALL IT THE COMMONS COMMON. IT, IT IS A WIDE OPEN SPACE. OKAY. AND THEN THE VERY TOP RIGHT, WHICH YOU POINTED OUT EARLIER IS THE AUXILIARY GYMNASIUM, WHICH HAS INTERIOR AND EXTERIOR ENTRANCES AND EXITS. OKAY. WE DIDN'T HAVE THAT GYM. RIGHT. SO THAT YEAH, THAT'D BE EVEN MORE OVERFLOW SPACE. MM-HMM . OKAY. AND THE PARKING DOWN THERE IN THE BOTTOM'S GONNA BE NOW THAT'S GONNA BE THAT KIND OF PARKING OR IS IT NORMALLY THE PARK RIGHT ALONG THE, ALONG THE STREET. SO CORRECT ME IF I'M WRONG, MICHAEL, THEY KEEP THE, ALONG THE STREET. YEAH. AND WE'RE ADDING THIS ON THE RIGHT HAND SIDE. OKAY. HMM. OKAY. YEAH. ALRIGHT. SO THIS IS A PICTURE FROM THIS WEEKEND OF THE EXISTING MAIN ENTRANCE. AND THIS IS A PICTURE OF THE RENDERING THAT WE GOT FRIDAY BASED OFF OF THE 95% DRAWINGS. SO YOU GOT YOUR KIVA ON THE LOWER LEVEL LEARNING COMMONS ON THE UPPER LEVEL, UH, SECURITY VESTIBULE AT THE MAIN ENTRANCE ADMIN SUITE ON YOUR LEFT HAND SIDE. MM-HMM . VERY INDUSTRIAL, DIFFERENT. THIS IS THE EXISTING GYM ENTRANCE. AND KEEP IN MIND WITH US RELOCATING AND MAKING GEOTHERMAL PART OF THE BASE BID, NO LONGER BEING AN OPTION, THE COOLING TOWER THAT YOU'RE SEEING, THE CHILLER THAT YOU'RE SEEING, THAT ALL GOES AWAY. MM-HMM . THAT'S EQUIPMENT THAT WE DON'T NEED TO REPLACE. SO THAT'S ANOTHER COST SAVINGS [01:50:01] IS WE DON'T HAVE TO BUILD A MUCH LARGER MECHANICAL YARD WITHOUT OUTDOOR ACCESS. WE CAN SHRINK THAT ADDITION THAT THEY NEEDED EXPONENTIALLY DOWN TO JUST THE FIVE PUMPS THAT WE NEED FOR A GEOTHERMAL SYSTEM. THEN THERE'S A RENDERING OF WHAT THAT ENTRANCE WOULD LOOK LIKE. SO YOU NOTICE THE EQUIPMENT GONE ON THE LEFT. LITTLE BIT OF CLEANUP ON THE RIGHT AND THEN HERE'S AN OVERALL SEEING THAT FRONT ADDITION AND THE GYM ENTRANCE. MM-HMM . JEFF. SO, UM, I TRANSITIONED INTO THIS ROLLBACK IN NOVEMBER AND AT THAT POINT IN TIME WE WERE AT THE 65%. UM, BUT WE WERE PULLING THESE NUMBERS TO MAKE SURE THAT YOU GUYS SAW FOR ENERGY EFFICIENCY. BREWTON HIGH SCHOOL IS THE SISTER SCHOOL OF TAB HIGH SCHOOL. THEY'RE THE SAME BASIC FLOOR PLAN. BREWTON HIGH SCHOOL IS ALREADY GEOTHERMAL. MM-HMM . IT COSTS US ALMOST 120,000 MORE PER FISCAL YEAR TO RUN TAB HIGH THAN BRUTON HIGH. SO WHEN WE TALK ABOUT RETURN ON INVESTMENT, WE PUT A LOT OF SCRUTINY INTO THE COST ESTIMATE AND THINK THAT WE'RE ACTUALLY VERY CLOSE IF NOT PAST THE RETURN ON INVESTMENT. BUT EVEN IF THERE IS A RETURN OF INVESTMENT TO THE TUNE OF LET'S SAY A MILLION DOLLARS, WE'RE ONLY TALKING 10 YEARS. BUT THEN WHEN YOU TALK ABOUT UTILITY COSTS INCREASING, WHICH WE KNOW THEY ARE, EVERYBODY'S SEEN THE BILLS ON THEIR OWN HOUSE. UM, DOMINION IS LOOKING FOR MORE, UM, EVERYTHING'S GOING UP. BUT THE THING THAT WE ALSO HAVE TO REMEMBER IS THAT IN 20 TO 25 YEARS, WHEN THE REST OF THE MECHANICAL HVAC HAS TO BE REPLACED, SO ALL THOSE HEAT PUMPS, ALL THE MAKEUP AIR, WE DON'T HAVE TO REPLACE THAT GEOTHERMAL. GEOTHERMAL, RIGHT? SO WHAT'S GONNA COST US TODAY, IF WE WENT WITH THE DIRECT REPLACEMENT OF $4 MILLION FOR A COOLING TOWER, A CHILLER, BOILERS, WHAT'S THAT GONNA COST US IN 20 YEARS? 8 MILLION. 12 MILLION. SO, UM, GEOTHERMAL REALLY IS THE, RIGHT NOW, WE THINK IT'S THE MOST EFFICIENT WAY TO GO, NOT JUST ENERGY WISE, BUT FINANCIALLY. AND THEN WE'RE LOOKING OUT FOR THE SCHOOL DIVISION AT FUTURE COSTS. SO, ONCE AGAIN, I WANNA MAKE SURE WE'RE CLEAR. UH, YOU KNOW, LAST YEAR THERE SEEMED TO BE SOME MISUNDERSTANDINGS. WE WERE TALKING ABOUT THE FACT THAT THE ENTIRE HVAC SYSTEM HAS TO BE RENOVATED, AND THEN THAT DIFFERENCE, OR ROI WE WERE TALKING ABOUT WAS ONLY IN THE DIFFERENCE BETWEEN A MECHANICAL SYSTEM AND A GEOTHERMAL. AND SO HERE WE'RE GIVING YOU A LITTLE MORE INFORMATION OF NUMBER ONE IS WE LOOK CLOSER AT IT, UH, WE FEEL LIKE IT'S NOT, UH, OR THE NUMBERS WE'RE GETTING IS THAT DELTA IS NOT GONNA BE THAT MUCH. AND THEN WHEN YOU ADD ON 20 YEARS FROM NOW, WHEN YOU GO TO DO RENEWAL, YOU'RE NOT HITTING THAT COST AGAIN. SO OF ALL THOSE MECHANICAL PIECES, UH, THAT'S NOT ALL THE MECHANICAL, BUT IT'S THE BIG ONES. AND SO NOW YOU'RE REALIZING THE SAVINGS A SECOND TIME. SO JUST WANTED TO MAKE SURE WE WERE, WE WERE CLEAR ON IT. MM-HMM . SO AT 35%, WE WERE AT 40.78 MILLION FOR CONSTRUCTION COSTS ONLY. WHEN WE STARTED REVIEWING AT 65% AND MAKING THESE OPTIMIZATIONS, WE DROVE IT DOWN TO 34.77. UH, AND TO ECHO WHAT DR. CAROL WAS JUST SAYING, AS, AS THE PLANS EVOLVE AND YOU REALLY DIAL IN ON THOSE, THOSE DESIGNS WITH THE ARCHITECTS AND THE ENGINEERS, THOSE COST ESTIMATES BECOME MORE ACCURATE. SO WE'RE SUPPOSED TO GET THE 95% DRAWINGS THIS WEEK, AND WE EXPECT TO HAVE AN EVEN MORE ACCURATE COST ESTIMATE. AND YOU'LL SHOOT THAT OVER TO US. YEAH, SURE. YEAH. UM, SO THIS IS JUST A, A RECAP ON THAT. AND WE DID MEET WITH THEM. WE HAVE A, A PROGRESS SET THAT WE GOT LAST WEEK. WE'VE ALREADY STARTED REVIEWING THAT. UM, WE'RE, WE'RE WORKING CLOSELY WITH THE COUNTY AND THEIR PERMITS OFFICE, HAVING, YOU KNOW, INFORMAL CONVERSATIONS TO GET THAT, THAT REVIEW PROCESS STARTED. AND THEY'LL BE GETTING THE OFFICIAL DOCUMENTS VERY SOON. WE'LL GET THEM NE UH, THIS THURSDAY, ACTUALLY. UM, SO THEN IF WE FOLLOW THE NORMAL SCHEDULE, YOU'RE IN MAY, UH, FOR THE PERMIT REVIEW COMMENTS, AND WE'RE HOPING TO GO OUT TO BID EARLY JUNE. SO IT'S SUMMER OF 27 WHEN YOU WOULD DO THE TEAR DOWN OF LOCKERS, ET CETERA. SO IT'S POSSIBLE FOR US TO PHASE RIGHT THAT, SO THE LOCKER ROOMS, IF WE'RE NOT MAKING CHANGES THAT, THAT WE CAN DO, IF WE'RE MAKING CHANGES THAT WE CAN DO DURING THE SUMMER, WE MIGHT START, UH, THE ROOF, UH, WORK. THERE'S TWO DIFFERENT SCOPES OF IT. SOME OF THE HIGHER FLAT ROOF DOESN'T NEED A COMPLETE REPLACEMENT, IT JUST NEEDS CLEANED, A NEW MEMBRANE LAID DOWN AND MORE FLASHING ON TOP OF IT. BUT THEN THE LOWER FLAT ROOF IS A FULL REPLACEMENT. SO IF WE COULD GO AFTER SOME OF THOSE HIGH ROOFS THIS SUMMER, ANYTHING THAT WE CAN DO TO START THE PROJECT. UM, AND ALSO FOR US, THAT MEANS ENGAGING THAT GENERAL CONTRACTOR, KEEPING THEM EMPLOYED, WHICH FOR THEM MEANS A, A LONGER DRAWN OUT PROCESS, BUT THEY GET TO KEEP THEIR EMPLOYEES IN A, A MORE RELAXED SCHEDULE. AND WE'LL JUST COORDINATE WITH THE SCHOOL. WE, UH, MICHAEL AND MARK DID A GREAT JOB OF PULLING OFF BRUTON HIGH SCHOOL'S ROOF DURING THE SCHOOL YEAR. WE'RE, WE'RE LOOKING TO DO THINGS LIKE THAT TO GET THE PROJECT STARTED. TRUST ME, THERE WAS SOME FEEDBACK DURING BROAD ROOF . [01:55:01] THANK YOU. SO THAT CONCLUDES OUR PRESENTATION. WE'RE OPEN TO ANY QUESTIONS. SO, UH, WAS IN YOUR PLANS LAST YEAR, YOU DIDN'T MENTION IT THIS TIME, RIGHT? THAT, THAT IS OUT THE PLANS NOW, BUT THAT, WE'LL, WE WILL VISIT THAT WHEN WE GET THERE. ALL THE INFRASTRUCTURE. UH, MR. GILMORE, WOULD YOU SPEAK TO THE POSSIBILITY OF SOLAR IN THE FUTURE? YES. SO RIGHT NOW, ACTUAL THE, WE'RE GONNA PUT IN SOLAR READY ELECTRICAL SWITCH GEAR. THE ROOF MEMBRANES ARE GONNA GO BACK TO BE SOLAR READY FOR THE PENETRATIONS. THE STRUCTURAL ANALYSIS IS BEING DONE TO MAKE SURE THAT WE CAN SUPPORT THE, THE WEIGHT OF A SOLAR INFRASTRUCTURE. WE JUST DON'T HAVE THE BUDGET TO ACTUALLY GO AFTER THE SOLAR PANEL SYSTEM ITSELF. SO EVERYTHING'S BEING DONE IN ANTICIPATION THAT IF WE WANT TO, IF WE HAVE THE FUNDING TO ADD SOLAR IN THE FUTURE, THE BUILDING IS READY FOR IT. AND YOU'LL REMEMBER WHEN WE WERE DOING THE INITIAL PLANNING, THERE WERE FEDERAL INCENTIVES TO DO SO, JUST AND NEW POSSIBILITIES FOR US TO ACTUALLY ENGAGE IN THOSE. THOSE ARE OFF THE TABLE RIGHT NOW. WE DON'T KNOW WHAT 2, 4, 6 YEARS IS GONNA BRING US. SO THAT IS SOMETHING WE WANT TO BE ABLE TO SWITCH TO, IF POSSIBLE, IF IT MAKES SENSE FISCALLY, WELL, I THINK DOMINION IS TALKING ABOUT NO LONGER ALLOWING THE, THE, UH, ELECTRICAL GRID TO TAKE THE SURPLUS. SO THAT WOULD BE ANOTHER NEGATIVE CHANGE ON, ON A SOLAR PROJECT. UNLESS MAYBE, UNLESS MAYBE DOMINION'S THE ONE DOING THE WORK. , IT BLOWS MY MIND. I MEAN, THEY STRUGGLE TO PROVIDE POWERS IS WHY WOULD THEY TURN DOWN? WELL, IT JUST MEANS THEY'RE TAKING THE POWER, BUT THEY'RE NOT PAYING YOU FOR IT, THEN THEY'RE NOT GETTING THE POWER THEN . AND THERE ARE, UH, THERE ARE ALSO OPTIONS FOR, UH, BUYING CREDITS FOR THAT FOR COMPANIES. RIGHT. BUT THAT HAD BEEN OPENED UP TO GOVERNMENT IN RECENT YEARS AND THEN IT WENT AWAY. SO WE, WE WEREN'T IN THAT WINDOW TO DO SO WE, WE WERE LOOKING FORWARD TO THAT. 'CAUSE I THINK THE SYSTEM WAS, WE WOULD BE ABLE TO SELL THE MM-HMM . CREDITS TO PRIVATE COMPANIES. RIGHT, RIGHT. BUT THAT'S NOW DEAD. SIX O'CLOCK. WE PROBABLY PUSHED THIS LONG ENOUGH. ANY, UH, WRAP UP, UH, QUESTIONS? I, I GOT ONE QUICK QUESTION. UM, THINKING ABOUT ALTERNATIVE SUPPLEMENTAL REVENUE STREAMS HELP DIVERSIFY YOUR REVENUE PORTFOLIO AND THINKING ABOUT HOW WE HAVE FACILITY LIKE BAILEY FIELD AND, AND THEN WE HAVE MORE TURF FIELDS NOW. HAVE YOU EXPLORED THE OPTION OF AMEN RIGHTS? AMEN. RIGHTS . YEAH, . I MEAN, THAT'S, MANY PLACES DO THAT. WELL, WE'RE THE NUMBER ONE SCHOOL DISTRICT IN THE, IN THE STATE, UM, LOOKING TO BRING SOME REVENUE FROM, FROM DOING THAT. HAVEN'T LOOKED INTO THAT YET. YES, IT'S POSSIBLE. MIGHT BE WORTH THE MAINTENANCE. HAVING BEEN INVOLVED WITH IT FROM H-R-T-F-A. IT SOUNDS REAL EASY. IT'S NOT. WE'VE BEEN WORKING ON IT FOR TWO YEARS AND HAVEN'T GOTTEN ANYTHING WORTH THE VALUE OF GIVING UP THE NAME OTHER PLACES. HALF, BY THE WAY, THEY'RE A LOT BIGGER. YOU KNOW, DAM TOWN BANKS IN THIS AREA IS SPONSORING PNC FACILITY DOWN IN RALEIGH. 'CAUSE IT'S RIGHT ON THE INTERSTATE. 40 AND MILLIONS OF PEOPLE DRIVE BY THERE. WE DON'T, YOU KNOW, OUR LITTLE CENTER'S GONNA BE TUCKED IN THERE. EVEN THOUGH WE'RE GONNA GET, YOU KNOW, SEVERAL HUNDRED THOUSAND PEOPLE A YEAR THROUGH THERE, WHAT THEY WANT TO PAY FOR IS NOT ALWAYS, UH, WORTH THE NO, I UNDERSTAND. BUT WHATEVER THE OPTIONS ARE, YOU KNOW, WE, WE, WE'RE NOT IN A FLUSH ECONOMY. SO I CAN SAY EVERYBODY WANTS TO LEASE OUR CELL TOWER LANDS, BUT NOBODY'S COME TO US SAYING, UH, CAN WE GET THE NAMING RIGHTS ON BAILEY ? WELL, MAYBE THAT'S AN IDEA. PEOPLE START THINKING ABOUT NOW, PAYMENT RIGHTS ON THE CELL TOWERS. . WELL, THANK YOU GENTLEMEN. VERY INFORMATIVE. THANK YOU. YOU, YOU MET OUR NEEDS IN TERMS OF UH, GOOD THOROUGH UNDERSTANDING OF YOUR BUDGET AND UH, AND WHERE WE CAN HELP. UM, SHEILA, YOU OUGHT TO FEEL PROUD. YOU WERE ON THE BOARD OF SUPERVISORS WHEN THIS GUY GRADUATED FROM HIGH SCHOOL. I KNOW. , I WASN'T GONNA SAY THAT. BEEN ON IT WHEN HE WAS IN A KINDERGARTEN. WENT SCHOOL. HE WAS A JUNIOR OR HE JUNIOR OR A SOPHOMORE. I THINK HE WAS JUNIOR OR SOPHOMORE OR TAB AND BREWTON, THE SAME FLOOR PAN ARCHITECT OR WHATEVER IT WAS. LAFAYETTE, I DON'T KNOW. SURE. LOOKS LIKE IT. . I RIGHT. WITH THAT, I'LL CLOSE TODAY'S MEETING. OUR NEXT SESSION OF THE BOARD IS ON THURSDAY, ALSO A BUDGET WORK. THANK YOU VERY MUCH, TY. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.