okay
it is now 7 o’clock p.m. and as you know from seeing our agenda we’re going to
hold a special call board meeting at this time for the third reading of the
2019–2020 general fund budget and and then once that is done and we are going
to open it up for a citizens participation if anybody would like to
comment on the budget we will adjourn that public hearing and then we’ll
immediately go into our regular general session so y’all are in
for a treat so buckle up any way we we want to welcome everyone so at this time
do I hear a motion to adjourn executive session and begin the special call board
meeting regarding the third reading of the tonight 2019–2020 general fund
budget so thank you Mr. Anderson do I have a second second okay thank you dr.
powers are there any questions or comments board before we go into the
meeting hearing none we’ll take a vote all in favor please say aye
any opposed the motion carries and it is unanimous
I would like to notify you that the district is in compliance with the South
Carolina Freedom of Information Act by notifying the media of the date time and
place of this meeting and we are going to go to 5.0 which is the third reading
of the 2019–2020 general fund budget and then board once we go into the general
session following this meeting there that will become an action item and we
will be voting on the budget tonight so just for the public’s information so
this time I’m going to turn it over I think to Mr. Butler and before I do that
this is Mr. Butler’s last night with us in terms of a board meeting and Mr.
Butler how many years have you been with district 32 and a half 32 and a half
and he has served us and our students well so before we go into this portion
of the budget let’s give him a round of applause in fact and he is going to go out with a bang so
Mr. Butler when you join the district how many children did we have in the
district at that time this ballpark might have been around 78,000 you know
where are we today I guess we were about 6,000 Wow a lot happens in 32 years
right okay mr. Butler take it away all right
thank you and I do appreciate that I’ll say it’s made my job a lot easier from
the support that I’ve gotten especially from the board I know a lot of
administrators and finance people across state don’t get that support so I really
appreciate it and appreciate the support from my staff and the principals and SLT
just appreciate that very much so this is the third reading of our general fund
operating budget for 2019 all right so just kind of go over
difference between our operating capital budgets operating budgets are used for
the day-to-day expenditures you know they used to pay salaries they used to
buy supplies purchase services everything in the day you utilities
everything day-to-day for operations the capital budget on the other hand is
strictly used for things like buildings technology renovations to buildings by
the exams button busses library books band instruments
and uniforms but you cannot use capital money to pay for operations by long so
look far back as I can remember we’ve been growing five to seven hundred
students every year and I think cross the past ten years or so it’s a little
over 500 last year was for the 18-19 year was 488 students the previous year was
616 so we’re predicting for next year a little over 500 new students in growth
for 1920 so some considerations for the budget process have to meet mandated
expenditures without sufficient state funding to meet those expenditures we
have to provide for the student growth that we just talked about we have to
meet state or federal and state requirements the inflationary costs for
things like insurance utilities etc and then to ensure quality and support for
students and staff the priorities for the 1920 budget three years ago when dr.
who came he he had an initiative to be called Drive 235 and it was that the
lowest paying starting salary for a teacher would be 35,000 and I’ll slide
up it later when he when he came it was about 32 eight also to meet this state
mandated four percent surf ride salary increases a two percent supportive staff
salary increase in a 1% administrative salary increase so beside those
percentages all three groups certified support and administrative will receive
a step for all eligible employees and course we have to open beechwood middle
school we’ve got supplemental student support which things like OT Petey’s
mental counselors are interventions those things for support for students
and then we wanted to maintain current class where current class ratios so if
you look at the ratios over the past three years you can see the columns of
the Left we’ve reduced ratios across those three years quite a bit in our
elementary schools kindergarten going from twenty sixty one to twenty two to
one first grade 24 to 1 to 22 to 1 second grade twenty five to one to
twenty two to one third graders remained at twenty five to one and then fourth
and fifth grade going from 20 61 down to twenty five to one so beside the
reduction in ratios we’ve also tried to improve the salaries as I mentioned so
the drive to thirty five has become arrived at thirty five you can see there
across the past four years the increase in that first beginning
step for teachers say when dr. okay my think it was at 32 eight and this year
will be at thirty five 991 so almost thirty six thousand so besides reducing
class sizes we’ve also been able to raise teacher salaries and that and that
that talks about the beginning cell but it builds all the way up so it’s not
worth just increase in the bottom it’s it’s everybody gets that same type of
increase and then the changes from second reading
to third reading okay we were able to reduce the amount
we have in there for a step increase by 1.2 million this came about when we did
an analysis of the difference if everybody might have moved the whole
step every year then we go from you know whatever might be step 15 there and go
to step 16 well found out was it wasn’t quite that
way it might be from step 15 – there’s been fifteen and a half or fifteen point
seven so we use that to budget by so we’re able to reduce 1.2 million there
and then we also received since second reading increases in our property and
casualty love I had to do with the reassurance that our carrier has put
into place increase in workers compensation insurance 280,000 that
comes from increase in the pay increase in the number of employees and also
increase in the number of instance we’ve had over the past three years they take
that into account so then the cost of additional mental health counselors that
say eat counselors for $160,000 and then for certified staff for elementary we
have 7.0 new certified 29.8 middle school 9.5 high school and 17.8 special
needs certified we’ve tried to really put an emphasis on the special needs
this year because we found that throughout the year we seem to have to
keep adding so hopefully trying to look at that
we won’t have to add as many special needs personnel as we’ve had in the past
and then fire pool positions for a total 69 point one so this is a net staffing
changes excluding Beachwood and the transfers from Pleasant Hill and those
Lexington middle school this would just be basically normal growth so certified
forty three point three support one point seven you know if there’s a minus
three for Central Services administrators that’s actually my
position we had a director of accounting and director and communications that are
not being filled and then we added one school administrative staff which is an
assistant principal then we had supplement supplement of supplements
additional days and in additional salary increases I’ve heard 17,000 so total of
43 FTE at 3.4 million remind us again on a school administrative staff isn’t that
the position based on the number of students at a particular school and we
had to go up a formula ratio for that so it’s really not adding at beechwood
because we’re actually transferring the assistant principal from like some
middle school to Beechwood this is actually due to Lexington High School
hitting that certain level where they’re actually do another assistant principal second year start up costs for medical
and middle school no excuse me beechwood middle school here we go
all right startup cost for Beechwood middle school salaries and related cost
for Beachwood middle school via a total of 86 FTE now we’ll have some savings
because we’ll be able to transfer some of those staff from Lexington middle and
Pleasant Hill middle to beechwood so as those students transfer to beechwood a
good bit of the staff will go with them so the net Saturdays related cost is
thirty four point five five at two point three million and in the programs and
services seventy-five thousand that’s their second year allocation for their
library books total of two point three eight million and then the general fund
support staff so we’re actually reducing school sports instructional staff by ten
point five lava has to do with the state’s requiring computer lab
assistants now two computer lab assistants now to be certified whereas
before we had support staff in there so we’ve had to relocate that staff and put
certified positions in those computer labs which is one of the reasons you see
the increase in certified staff special needs seven positions other schools
support eleven point nine five that’s mainly the housekeeper in a stove over
Beachwood Middle School and then there’s also some secretaries and bookkeepers
included in there and then we have two central services support and that would
be a carpenter for our maintenance department and a computer technician for
Beechwood middle school so the overall net staffing changes
certified sixty nine point one about five million dollars support staff
little over ten four and thirty seven thousand we mentioned the three
reductions to Central Services administrative staff they increase in
one school administrative staff this such principal and then the overall
supplements positional days in temporary salaries six hundred twenty four
thousand so the overall increase seventy seven point five five positions at five
point seven million dollars last year we added on some safety cost I called it
layer to safety we kept hearing about the state was going to give us some
funding for security will come first of the year there was no funding for
additional security for schools which was wild last year we had to increase
Miller four or five mills in order to pay for that safety issue were added
some of additional safety board certified behavioral analyst and we’ve
got additional school safety officers which is a contractor service 326,000
and then they eight additional mental health counselors I mentioned earlier
one hundred and sixty thousand so a total of five hundred seventy eight
thousand for the layered safety okay state funding shortfalls this is
the reading coaches and the nurses now we do receive money from the state for
those positions but each year the that gap between the cost for those positions
and the amount we received from the state gets wider and wider the state
actually reducing the amount that they’re funding for those positions so for the green coaches we’re having to
add an additional sixty four thousand dollars on top of what we’ve already
covering and nurses forty-one thousand on top of what we’re already covering so
for the past three years we’ve had to pick up a total of six hundred and
seventeen thousand dollars for reading coaches and 117 thousand dollars for
nurses for a quarter total shortfall from the state of seven hundred and
thirty four thousand dollars state funding shortfall for mandated
expenditures new state revenues seven million dollars the mandating
expenditures are something that we have no say-so about they’re mandated by the
state our retirement increase at two million the four percent certified
increased five point five men and then we’re required to give teachers a
certified step one point six million for a total shortfall of 2.2 million this
does not include any of the other increases for support administrative or
a step four support an administrative but we do have those in the budget increases in programs and services the
school resource officers we mentioned contractual services mainly being for
licensed professionals like OTS pts and psychologists funds for a place for
reduction of middle schools replace feed reductions in middle schools one hundred
thousand we try to put an emphasis on actually reducing the amount of fees
that parents have to pay so we do that though some of those we we have to have
the money for the schools because they’re dependent upon them so that’s
that hundred thousand human resources seventy-five thousand that’s just for
the increased cost of background checks a lot of that being volunteers we don’t
want people in our schools who we haven’t run a background check or maybe
maybe should not be in the schools with our children coda the future supplies
forty nine thousand they mental health counselors 160 thousand nine utilities
maintenance and other insurance six thousand for a total of nine hundred
sixty six thousand shoot okay we also has some decreases in programs and
services start up supplies for new schools imagine most of the startup cost
for some supplies for beachwood were in the current year’s budget because we
needed to open school so there’s a reduction there the executive leadership
program production of 122 thousand communication expands telephones
basically reduction of almost 60,000 and IT supplies reduction of a little over
eighty thousand those total decreases of three hundred and seventy four thousand all right projected revenue changes this
is budget the budget current year’s budget compared to what we’re projecting
next year’s budget increase in local of 2.4 million the increase in the state of
12.5 now we didn’t get an additional 12.5 from the state this is just budget
the budget transfers EA transfers and indirect cost increase to three hundred
and three thousand and actually I’ve been able to reduce the amount of
operational balance that we have in the budget by seven hundred and forty four
thousand so the total projected increase in revenue 14.5 million dollars we’ve
gone over this the last couple presentations this is the amount of
money we’re losing due to actor 88 it’s a simple calculation
it’s the difference that the amount that we would have received on homeowner
property taxes compared to the amount that the state’s actually giving us and
so just for last year that shortfall was forty one point three million dollars so
in the ten year period it’s over two hundred nine thousand dollars that we
did not receive from the state that we would have received from homeowner
properties so it’s an increase of about 4.1 million per year and it’s cumulative
so that’s why it’s the 209 million operating expenditures most of our
budget goes towards salaries you see there increase in salaries almost 14
million programs and services a little less than six hundred thousand for a
total budget of increase of 14.5 million and that’s five point one nine percent
increase over the previous year this is just a breakdown showing that some
mentioned most of our money is in Versailles in salaries so that’s a
eighty seven point seven five percent and salaries seven point seven percent
and their programs and services and then a little four and a half percent for
utilities and maintenance there’s also a cap that amount of millage that we can
increase because of act 388 our current millage rate is three hundred twenty two
point four Mills the allowable percentage increase according to the
state is four point seven two percent and that’s a combination of the increase
in the southeast CPI and the growth in population in our districts which means
we could increase millage fifteen point two one Mills value of a mill for
operations being a little more than two hundred eighty two thousand that would
generate up to around four point three million dollars in new revenue but in
this budget we are not recommending any millage increase for operations so
therefore there’s no new money because of the millage so in summary includes
seventy seven point five five positions for growth includes a step increase for
all eligible employees a four percent increase for certified
two percent increase for support 1% increase for administrative staff who
is funding to meet state and federal requirements
I couldn’t funding to cover the required inflationary cost and does not include
proposed millage increase for operations I’ll be glad to answer any questions I have a question mr. Butler on slide 18
we have utilities and maintenance and insurance originally the increase in
that service was three hundred and three thousand eight hundred and eight dollars
but now it’s six thousand two hundred and sixty four dollars I noticed that as
I was going through it I’ll have to get back with you and why that’s the
difference okay also last time I asked about the twenty
thousand dollars for safety and health items in an email y’all said that was
moved out of the safety officers because it was for personal protective equipment
and other items is that still in the budget somewhere I’m sorry what was it
for it was for personal protective equipment and other health-related items
it’s still it’s still in the budget it’s just not it’s just we decided that was
not a part of the security so we took that out of that particular line item so
it just got moved to another line out of this thank you sorry mr. Butler the the
step increase what is it what’s a rough percentage average percentage for a step
increase it varies a little bit for most people it’s right around 2% okay we’re
certified through step 23 which is all further the state certified schedule
goes to that’s right about 2% now we go to 30 but the state doesn’t give us any
more money for that about 23 so it’s a 1% after
okay similar support three-year 25 it’s 2% and then 1% after that so you’re a 30
administrative it’s probably closer to about a 1 and it varies also depending
on where you are on the scale one and a half to one point seven percent okay so
I’m assuming CPI I think it’s been like 1.8 percent 2 percent somewhere along
there I might as well be yeah southeast is probably maybe a little less than
that or is it capping it’s a little over 2% ok for the next year so regardless
even on the in the worst case scenario we’re still staying above CPI for all
all levels of staff administrative support and teacher they stop you know
plus the salary that’s right okay so we’re above the curve for for CPI right
and then you might can answer this there was a question in the past about
memorandum of understanding with like scenario mental health with the mental
health counselor was there any anything additional with that believe mr. Salters
has some information on that doctor guy doctor guy we actually have a meeting
with them tomorrow Oh to review that contract so we have
not finalized it yet okay but we have taken your input and are working with
them on that gotcha thanks for service mr. feller thank you
hey what’s the advice for the next 32 years when it comes to school finance
what’s the words of the parting words of wisdom for us so we don’t mess it up
probably surround your people with people with people who are smarter than
you are and I’ve done that and it’s worked out really well I know it’s a
logo well we appreciate the service thank you board are there any other questions
regarding the budget reading I have one question are there any teaching
positions that have not been filled that we
I’ll just say I got word that they’re at a certain school there’s a teacher
leaving and her position is not going to be filled once she leaves do you know I
know we have some positions that still need to be filled but mr. Stacey might
be able to answer that question better than I’m good there are positions when
we do the budget every year we look at projected enrollments and so there there
may be a position where a teacher was in a position and that position is no
longer needed that FTE so we would not fill that position without knowing
specifically what school and what position I it’s kind of hard to address
it but I mean we look at it on a regular basis in fact I spent today looking at
numbers from the different schools to try to see if there’s any chance that we
might be able to move an FTE from one school to another based on we just had
the PowerSchool numbers move up so I could look at numbers of students per
Section and we’re constantly reviewing that to see if we can move a teacher
from one grade to another grade because we just don’t automatically had a
teacher we’ll make sure we meet those ratios thank you correct me if I’m wrong
mr. Stacey but our process when this budget process starts is to use students
as our staff and that stat drives essentially the AFT budget that’s
correct and so as subdivisions come in what they don’t really go they seem to
come but then depending on where they go that then drives the numbers of students
definitely drives the number of FTE that we have board any other questions
okay at this time we’re going to open it up for citizens participation this is
only citizens participation regarding the budget if you if there’s something
else she would like to comment on we are going to have regular citizens
participation during the regular board meeting but this is a special call board
meeting only regarding the budget and we welcome any comments or any questions
that any of you in the community have for us we have cards available if you’ve
not filled one out is there anyone who would like to
address the board and make a comment or a question at this time this is your chance okay well we will
have citizens participation during the regular board meeting and if you think
of a budget question you can ask anything pretty much at that meeting but
this one is only just for budget so if you do think of a budget question you
want to ask it on the second half of the meeting feel free to at that time at
this time unless there’s anything else board regarding the budget we’re going
to adjourn I just want to make one comment because we can’t talk about the
budget without at least acknowledging the impact of at 388 on us I just a
little calculation and for last year for 2017 2018 the Act 3d8 funding loss for
that year alone would have been a fourteen point seven percent increase to
our operating budget if we had those funds to work with which would have been
teacher salaries extra positions extra programs and so it really is you hear a
lot about Act 3d8 388 but it has a real impact on the funding that we have and
what we were able to to do and what we’re pretty amazing with what we do
without it I just I dream about what we would do if we had
even part of that money and we talked about we nashor teeth when we raise
mills five or ten but if you took that 40 million divided by 270 mils that’s a
lot of mils we could reduce and again most people don’t understand that our
operating budget comes from a bucket of federal money state money and then local
county property owned money and you know we talked about mr. Butler talked about
how the state funding deficit so what that means is we have to turn to federal
or county sources for that deficit which quite frankly at all times ends up being
our County resources and in so it’s business owners in the county that we
have to turn to to backfill that deficit so it’s an interesting beast it is a
good point and between actor 88 and the lack of funding for EFA through the base
student cost those two total together a little over 55 million dollars which
means if we’ve got that money from the state we could
actually reduce mils somewhere around 100 mils wait just a little bit to the
point that dr. Guyton was making about the step increase the funding for the
step increase comes through the EFA funding is that correct mr. Butler
that’s basically true yes and they’re not increasing that this year well $5
per student $5 per state now yeah well and actually this past year they reduced
what they had allocated about $5 in January that’s true any other questions or comments Ford
okay but this time we’ll adjourn the public hearing do I have a motion to
adjourn the public hearing so moved thank you dr. powers do I have a second
thank you Miss green are there any questions or comments regarding the
adjournment hearing none we’ll take a vote all in
favor of a journeying the third reading of the budget public hearing please say
aye aye any opposed we’re now in adjournment and
let’s go until let’s give us about five minutes so if anybody wants to stretch
or run to the restroom we’ll have about five or six minutes and then we’ll come
back into regular general session and we’ll get started again and I think
there might be some people out there that we need to let in so that’s why
we’re going to stop for just a minute