Feb 25, 2026 Budget Work Session

[00:00:03]

SEEING THAT IT'S 5 O'CLOCK,

[1.01 Call to Order]

[1.02 Pledge of Allegiance]

[1.03 Adoption of FY27 Budget Hearing Agenda ]

[1.04 Presentation of CCPS Fiscal Year 2027 Budget Request ]

WE'VE HAD EXTENSIVE DISCUSSION AS TO WHY WE ARE WHERE WE ARE FROM A MONEY PERSPECTIVE. I THINK TO REITERATE THAT WE ARE COMMITTED TO TO CONTINUING TO PROVIDE A TRADITIONAL, COMPREHENSIVE PUBLIC EDUCATION FOR ALL OF OUR STUDENTS. WE BELIEVE IT'S SOMETHING THAT THEY'RE ENTITLED TO, FRANKLY.

THERE ARE SOME CAVEATS THAT GO WITH THAT. WE KNOW THAT THE BLUEPRINT IS REALLY CHANGING THAT STRUCTURE. IT'S MAKING IT MORE AND MORE CHALLENGING TO PROVIDE THOSE KINDS OF SERVICES TO STUDENTS THAT DO NOT COME FROM AN ARTICULATED GROUP OF STUDENTS WITHIN THE BLUEPRINT, THOSE BEING POVERTY. STUDENTS WITH DISABILITIES, ELS, ENGLISH LEARNERS. AND SO THE CHALLENGE BECOMES, IS THERE ENOUGH FOUNDATION REVENUE TO PROVIDE THOSE OPPORTUNITIES.

AND WHEN I SAY THOSE OPPORTUNITIES, WE WERE JUST HAVING A DISCUSSION ABOUT SPRING SPORTS, SPORTS, THE ARTS, FIELD TRIPS, THOSE KINDS OF ACTIVITIES.

THAT WOULD BE EASY TO CATEGORIZE AS KIND OF LUXURY, IF YOU WILL, WHEN, IN FACT, WE ALL HAD THAT BENEFIT. WE ALL HAD THOSE KINDS OF.

COMPREHENSIVE EXPERIENCES AS STUDENTS. AND I WOULD URGE AND ASK THAT THE BOARD DO EVERYTHING WE CAN TO CONSIDER THAT OUR STUDENTS CONTINUE TO HAVE THOSE. AND THAT VERY MUCH. THE BLUEPRINT IS DESIGNED TO PUT RESOURCES IN CATEGORIES WHERE THERE'S A BELIEF THAT THERE'S AN INTENSE NEED. THAT SAID, I THINK AS A SCHOOL SYSTEM, WE HAVE A RESPONSIBILITY TO CALIBRATE IN SUCH A WAY THAT DOES. THAT PROVIDES RESOURCES TO THE STUDENTS WHO NEED IT MOST, WHILE STILL OFFERING PROGRAMS TO ALL OF OUR STUDENTS. AND SO WE THINK THAT BUDGET WILL DO THAT FURTHER. WE ARE INVESTED IN DEVELOPING AND IMPLEMENTING A MODEL THAT WILL HAVE TIERED STAFFING. OUR NEEDIEST SCHOOLS GET THE SMALLEST CLASS SIZES, OUR LESS NEEDY SCHOOLS WILL HAVE THE BIGGEST CLASS SIZES.

THAT'S JUST A FACT OF THE MATTER. ONE THING I WANT TO TALK ABOUT IS THAT YOU WILL SEE A RECOMMENDATION FOR POSITION CUTS THIS EVENING.

YOU'VE HEARD ME TALK ABOUT THE A&S GROUP, ADMINISTRATIVE AND SUPERVISION. IT IS, TECHNICALLY, IT'S NOT A COLLECTIVE BARGAINING GROUP, BUT IT CERTAINLY QUACKS LIKE ONE, SO WE'LL DISCUSS IT AS THOUGH IT WERE A COLLECTIVE BARGAINING GROUP. I BELIEVE, TECHNICALLY, DR. BUCKLEY, IT'S A MEET AND CONFER, AND THERE'S SOME LEGAL SEMANTICS IN THAT.

BUT RIGHT NOW, WE HAVE 109 FOLKS IN THAT GROUP, 109 ADMINISTRATORS. 68 OF THOSE ARE IN SCHOOLS. THEY ARE YOUR PRINCIPALS AND YOUR ASSISTANT PRINCIPALS. AND SO THAT LEAVES WHAT, 41? SEVEN ARE THE LEADERSHIP TEAM. THE RECOMMENDATIONS FOR REDUCTIONS THAT YOU WILL SEE THIS EVENING, NINE ARE COMING FROM THE REMAINING. SO OF THE REMAINING 30 OR SO, 35, WE ARE PULLING NINE AND REDUCING. IT IS A SIGNIFICANT REDUCTION FROM THE BOOTH STREET ADMINISTRATORS. IT IS DISPROPORTIONAL. WE TALKED ABOUT LAST BUDGET MEETING THAT OUR ADMINISTRATORS ACCOUNT FOR 7% OF THE WORKFORCE. I BELIEVE TEACHERS ARE 66% AND SUPPORT FOLKS WERE THE BALANCE, 30 AND CHANGE. SO THIS IS A DISPROPORTIONAL CUT TO ADMINISTRATORS, BUT I THINK IT REFLECTS... THE URGENCY THAT WE HAVE TO PUSH OUR SERVICES INTO CLASSROOMS TO THE EXTENT POSSIBLE. IF WE DO NOT GET $10 MILLION IN THE COUNTY EXECUTIVE'S BUDGET,

[00:05:01]

LAST YEAR, THEY GAVE US SEVEN AND A HALF MILLION DOLLARS OVER THE LOCAL SHARE REQUIREMENT.

DURING THE COURSE OF THIS YEAR, THEY'VE INVESTED ALMOST 1.5 MILLION DOLLARS IN A VARIETY OF SMALL PROJECTS AROUND THE COUNTY. THEY HAVE CLEARLY SHOWED THEIR LEVEL OF COMMITMENT. IF YOU WERE TO TALLY EVERYTHING, I JUST SAID, IT DOUBLES. TRIPLES WHAT THE SCHOOL SYSTEM HAS GOTTEN HISTORICALLY. AND I LEFT OUT THAT THEY ARE FRONT FUNDING THE CONSTRUCTION OF THE BIGGEST SCHOOL IN THE HISTORY OF CECIL COUNTY. AND SO THE COUNTY IS CERTAINLY DEMONSTRATING THEIR EFFORT. AND WE DON'T WALK IN THEIR SHOES PER SE, BUT THEY ARE SENSITIVE TO THE TAXPAYERS AND THAT PEOPLE ARE STRUGGLING IN THE COMMUNITY RIGHT NOW TO MAKE ENDS MEET.

BUT LET'S FACE IT, OUR JOB IS TO ADVOCATE FOR THE SCHOOL SYSTEM. AND THAT'S WHAT... PRETTY WELL DOCUMENTED, I'VE DONE OVER THE YEARS, AND SO WITH THAT, JUST ONE QUICK REMINDER OF THE TIMELINE, AND THEN I'LL TURN IT OVER TO MS. SOPA. HOPEFULLY WE WILL HAVE AN APPROVED BUDGET THIS EVENING. WE WILL TURN AND SUBMIT IT TO THE COUNTY TOMORROW. BY MARCH 31ST, THE COUNTY EXECUTIVE IS EXPECTED TO RELEASE HIS BUDGET. IT THEN GOES FOR PUBLIC SCRUTINY. WE ARE ON THE SCHEDULE APRIL 14TH TO PRESENT TO COUNCIL. MYSELF AND THE LEADERSHIP TEAM WILL DO THAT. AND THEN THEY ULTIMATELY VOTE ON THE COUNTY EXECUTIVE'S BUDGET. AND ONCE WE SEE WHAT'S BEEN APPROVED BY THE COUNTY, WE WILL THEN TURN AROUND AND BRING YOU A BUDGET THAT BALANCES. IN THE MEANTIME, WE WILL BE MUCH MORE CONFIDENT IN RETIREMENTS, RESIGNATIONS, IF THERE'S ANY CHANGE IN THE LEGISLATIVE PROCESS THAT MAY SUPPORT INCREASED FUNDING FOR SCHOOLS, ALTHOUGH I'M NOT OPTIMISTIC AT THE MOMENT. SO WHILE THERE ARE A NUMBER OF MOVING PARTS, IT'S STARTING TO COME TOGETHER HERE A LITTLE BIT. SO AGAIN, ARE THERE ANY QUESTIONS ON ANYTHING I JUST BROUGHT UP BEFORE WE START TALKING NUMBERS? AND AGAIN, OBVIOUSLY, I ENCOURAGE YOU ALONG THE WAY TO ASK QUESTIONS, AND WE'LL DO OUR BEST TO PROVIDE YOU WITH ACCURATE ANSWERS. SO WITH THAT, MS. SOPA. GOOD EVENING, PRESIDENT HEATH, MEMBERS OF THE BOARD, DR.

LAWSON, LEADERSHIP TEAM MEMBERS, AND GUESTS.

OBVIOUSLY, EVERYTHING IN OUR BUDGET ALIGNS WITH OUR STRATEGIC PLAN. SO, STARTING WITH OUR STATE BLUEPRINT FUNDING, AND THIS IS THE SAME SLIDE THAT YOU'VE SEEN PREVIOUSLY. AND WHAT WE TRIED TO DO WAS ADD SOME OF THE NOTES ACTUALLY TO THE SLIDE OF DISCUSSION POINTS THAT WE SHARED WITH YOU VERBALLY. SO THAT THEY'RE INCLUDED AS PART OF THE INFORMATION HERE. SO JUST SOME HIGHLIGHTS HERE.

THAT FOUNDATION BEING THAT POT OF MONEY THAT IS LESS RESTRICTIVE, WE CAN USE IT WHERE WE NEED.

IT, IS A 1.5 MILLION DOLLAR INCREASE. SO THERE WAS A SMALL AMOUNT, A SMALL INCREASE IN THE AMOUNT PER STUDENT, BUT WE DID HAVE AN OVERALL DECREASE IN OUR K-12 POPULATION, WHICH IS WHY OUR INCREASE HERE IS ONLY ABOUT 1.5 MILLION. YOU CAN SEE A LARGE DECREASE IN COMPENSATORY EDUCATION, SO THE AMOUNT PER STUDENT WAS REDUCED FOR FY27, AND THE NUMBER OF STUDENTS WHO QUALIFY, UH, AS STUDENTS LIVING IN POVERTY HAS DECREASED. AND SO THAT'S REALLY A BIG HIT FOR US GOING INTO FY 27. YOU CAN SEE A LARGE INCREASE HERE OF 2.3 MILLION DOLLARS FOR SPECIAL ED. BUT I'D LIKE TO DRAW YOUR ATTENTION TO THE FACT THAT OUR BUDGET INCLUDES 23.3 MILLION DOLLARS OF SPECIAL ED EXPENSES IN EXCESS OF THE SPECIAL ED REVENUE WE RECEIVE. SO THAT'S PROGRAMS, THAT'S EMPLOYEES, THAT'S THEIR FIXED CHARGES, THAT'S HOW MUCH WE ACTUALLY SPEND ON SPECIAL ED RELATED SERVICES IN OUR BUDGET THAT EXCEED THE REVENUE WE GET. THAT'S TAGGED FOR SPECIAL ED, SO WHILE THIS IS A NICE INCREASE, IT DOESN'T BEGIN TO CLOSE THAT GAP BETWEEN SPECIAL ED FUNDING AND SPECIAL ED SERVICES. THIS INCREASE IN CONCENTRATION OF POVERTY CAN ONLY BE SPENT IN THE 11 CONCENTRATION OF POVERTY SCHOOLS ON WRAPAROUND SERVICES. SO, AGAIN, THIS ISN'T SOMETHING THAT CAN BE USED FOR CLASSROOM TEACHERS. OR LOOKING AT CLASS SIZE CAN PAUSE YOU FOR A SECOND. QUICK QUESTION ABOUT SPECIAL ED. IS THE STATE AWARE OF THAT GAP, AND ARE THERE EFFORTS BY EITHER STATE BOARD OR OTHER GROUPS TO DO SOMETHING ABOUT THAT? SIGNIFICANT PUSH FROM PASAM, WHICH IS ONE OF THE PROFESSIONAL GROUPS I KNOW WE HAD SOME QUESTIONS ABOUT. BUT

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EVERY CHILD WITH AN IEP AT THE SAME LEVEL, WHEN WE ALL KNOW THAT STUDENTS WITH IEPS ARE VERY DIFFERENT.

ONE STUDENT MAY JUST NEED SOME SUPPORT WHEN THEY READ.

ANOTHER STUDENT MAY NEED A ONE-ON-ONE PARAPROFESSIONAL, EVEN A NURSE, A FULL-TIME NURSE. AND SO YES IS THE SHORT ANSWER. AM I OPTIMISTIC THAT WE'RE GOING TO SEE LEGISLATION SOON THAT STARTS TO COVER THE AMOUNT THAT THEY'RE SHORT? BECAUSE WE'RE TALKING, THEY'RE PROBABLY ONLY COVERING UP TO 60%, 70% OF WHAT'S ACTUALLY BEING SPENT.

AND THE CHALLENGE WITH THAT IS THAT THE REST OF THE MONEY COMES OUT OF THE FOUNDATION. THERE'S ONLY SO MUCH FOUNDATION TO GO AROUND HERE. SO. SO THE ANSWER IS YES, IT'S UNDER CONSIDERATION OF THE STUDY GROUP RIGHT NOW.

WHEN SOMEBODY IS REQUIRED A NURSE FULL-TIME, WOULD WE COVER THE EXCESS IF HEALTH CARE DIDN'T COVER SOME OF IT? OR WOULD THEIR HEALTH CARE COVER SOME OF THAT? OR IS IT ALL ON US? NO, IT'S AN EDUCATIONAL SERVICE. IT'S AN EDUCATIONAL SERVICE THAT NURSES HERE. SO IT'S IN OUR CONTRACTED SERVICES FOR SPECIAL ED THAT WE WILL ACTUALLY PAY FOR A NURSE FROM AN AGENCY. OKAY, THANK YOU. THAT'S A REALLY GOOD QUESTION. WE DON'T GET ANYTHING FROM MEDICAID, THAT. THERE IS MEDICAID, AND I'M NOT THE RIGHT PERSON TO ANSWER ALL THE QUESTIONS ABOUT THAT, BUT THERE IS MEDICAID. BILLING FOR SERVICES PROVIDED, BUT WE DON'T BILL HEALTH INSURANCE FOR EDUCATIONAL SERVICES.

COULD YOU ALSO EXPLAIN JUST HOW WE DETERMINE WHAT KIDS ARE IN COMPENSATORY EDUCATION? THAT'S BASED ON STUDENTS WHO RECEIVE FREE OR REDUCED-PRICE MEALS, AND SO WE SUBMIT THOSE NUMBERS TO THE STATE. AND SO THE DECREASE IN STUDENTS... IS PARTIALLY BECAUSE THERE USED TO BE AN AUTOMATIC ELIGIBILITY.

IF YOU ALREADY RECEIVE SOME KIND OF DIRECT CERTIFICATION GOVERNMENTAL ASSISTANCE, YOU AUTOMATICALLY RECEIVE THAT ASSISTANCE AGAIN. AND IT CHANGED SO THAT FAMILIES ACTUALLY ACTIVELY APPLY. ONE OF THE OTHER THINGS IS BECAUSE WE HAVE COMMUNITY ELIGIBILITY PROVISION SCHOOLS, CEP SCHOOLS, WHERE FOOD NUTRITION PROVIDES FREE BREAKFAST AND FREE LUNCH FOR EVERYONE. I THINK THERE ARE SOME FAMILIES THAT MAY NOT FILL OUT THE APPLICATION BECAUSE THAT SERVICE IS ALREADY PROVIDED FOR THEM, AND SO THEY'RE NOT SEEKING GOVERNMENT ASSISTANCE. OUTSIDE OF WHAT HAPPENS AT THE SCHOOL SYSTEM. SO WE'RE NOT REALLY GETTING CREDIT FOR THE FACT THAT THEY ARE A FAMILY LIVING AT THE POVERTY LEVEL BECAUSE THEY HAVEN'T COMPLETED THAT PAPERWORK. SO WE PROBABLY HAVE A LOT MORE KIDS LIVING AT THE POVERTY LEVEL THAN WE HAVE ON OUR OWN. YES, WE DO. VERY QUICK, WE'RE GOING INTO WEEDS A LITTLE BIT, BUT BACK TO SPECIAL EDUCATION. THERE ARE SOME COUNTIES IN THE STATE THAT HAVE A SPECIFIC SCHOOL FOR THAT, THAT HANDLE ALL SPECIAL ED NEEDS IN ONE PLACE. IF WE HAD A SCHOOL THAT WAS SPECIALIZED IN THAT, IT WOULD STILL BE PAID BY SPECIAL ED MONEY AND THEN FOUNDATIONS MONEY. IF WE DID OPEN A NEW SCHOOL THAT JUST SPECIFICALLY TOOK CARE OF THAT, IT WOULD STILL TAKE AWAY FROM FOUNDATION MONEY TO BE ABLE TO SUPPORT IT, CORRECT? YES, IS THE ANSWER TO YOUR QUESTION.

TO ADD A LITTLE BEEF TO THE FRONT PART OF YOUR QUESTION, OUR HIGH ROAD PROGRAM UP SINGULARLY, THE CESA ALTERNATIVE PROGRAM, IT'S KIND OF A HYBRID. IT SERVES STUDENTS WITH DISABILITIES AND STUDENTS WITHOUT. BUT THE OLD PROVIDENCE SCHOOL, YES, THAT IS OURS. WE CONTRACT WITH HIGH ROADS TO OPERATE THAT SCHOOL FOR US. THERE'S A LOT OF ACTIVITY IN ANNAPOLIS RIGHT NOW ABOUT PROVIDING SOME OF THE SHORE COUNTIES WITH THESE KINDS OF SERVICES, AMONG THE OTHER EIGHT.

COUNTIES ON THE EASTERN SHORE, WE DON'T BECAUSE WE HAVE THE PROVIDENCE SCHOOL. AND SO WE DO HAVE A FACILITY FOR THAT AT ANY GIVEN TIME. THERE'S PROBABLY UPWARDS OF 75 STUDENTS. AGAIN, A MIX IN TERMS OF EDUCATIONAL CLASSIFICATION.

AND IT IS PAID FOR THROUGH SPECIAL EDUCATION DOLLARS, FOUNDATION. THAT ANSWERS YOUR QUESTION? TSI FUNDING WAS ACTUALLY COMPLETELY PHASED OUT FOR FY27, SO YOU CAN SEE A REDUCTION IN $472,000 HERE. AND CAREER LADDER, THAT IS FOR NATIONAL BOARD STIPENDS FOR NATIONALLY BOARD CERTIFIED TEACHERS. AND SO THIS INCREASE HERE IS SPECIFICALLY FOR TEACHERS WHO HAVE NEW CERTIFICATIONS, WITH NEW STIPENDS COMING INTO FY27. SO, IN TOTAL, A $1.5 MILLION INCREASE, WHICH IS 1.1% OVER FY26, AND A LOT OF THIS IS EITHER EARMARKED OR ALREADY.

INSUFFICIENT FOR THE EXPENSES ASSOCIATED WITH IT. THIS IS A LITTLE REVIEW OF MAINTENANCE OF EFFORT VERSUS LOCAL SHARE, AND SO FOR FY 27, MAINTENANCE OF EFFORT EXCEEDS LOCAL SHARE.

SO THE MINIMUM REQUIRED BY THE COUNTY WOULD BE THIS $104.1 MILLION AMOUNT. AND KEEP IN MIND,

[00:15:02]

SO THAT $102 MILLION IS BROKEN OUT BY FOUNDATION, SPECIAL ED, COMP. ED. SO ANYTHING THAT THE COUNTY GIVES US OVER THIS AMOUNT IS AT OUR DISCRETION FOR HOW IT'S BUDGETED AND SPENT. BUT THE FIRST $102 MILLION... IS BUDGETED AND SPENT ACCORDING TO BLUEPRINT REQUIREMENTS. SO OUR REVENUE SUMMARY, SO AGAIN, COMPARING FY26 TO FY27, AND AGAIN, THIS WOULD BE. IF THE COUNTY WAS TO GIVE US THE MINIMUM, THEY WOULD BE ONLY REQUIRED TO GIVE US THIS. $104 MILLION, WHICH IS $1.2 MILLION REDUCTION FROM THIS YEAR, AND THAT'S BECAUSE, ALTHOUGH THE AMOUNT PER STUDENT STAYS THE SAME, THE NUMBER OF STUDENTS ENROLLED IN K-12 IS REDUCED, SO THAT'S WHY THAT OVERALL NUMBER IS REDUCED. YOU CAN SEE A SLIGHT UPTICK IN STATE UNRESTRICTED AND RESTRICTED TOGETHER HERE.

SO REMEMBER THAT $1.5 MILLION ADDITION FOR BLUEPRINT FUNDING, AND THEN A SMALL UPTICK IN RESTRICTED FUNDING FROM THE STATE. YOU CAN SEE THE FEDERAL REVENUE, A SLIGHT INCREASE, KEEPING IN MIND THAT OUR FEDERAL REVENUE RUNS ON A DIFFERENT TIMELINE.

OCTOBER THROUGH SEPTEMBER, SO WE'RE REALLY JUST TAKING THE CURRENT RESTRICTED BUDGET AND ROLLING IT OVER INTO THE NEW YEAR.

UNTIL WE RECEIVE INFORMATION FOR OUR GRANTS ON WHAT THE NEW AMOUNTS WILL BE MOVING INTO FY27. THIS OTHER NUMBER HERE INCLUDES INTEREST REVENUE.

IT INCLUDES MISCELLANEOUS REVENUE, SO FOR THINGS LIKE RECYCLING OR MAYBE TUITION FOR STUDENTS OUTSIDE OF THE COUNTY. AND THE OTHER $3 MILLION, WE BUILT IN OPEB, OTHER POST-EMPLOYMENT BENEFITS FOR RETIREE HEALTH CARE.

THAT'S AN EMERGENCY RESERVE THAT WE HAVE THAT WE'RE PROPOSING TO USE FOR THIS BUDGET TO TRY TO BALANCE THE BUDGET. AND FUND BALANCE, WE'RE PROPOSING TO USE $5 MILLION FOR FY27.

SO, COMPARING FY26 TO FY27 ANTICIPATED, YOU CAN SEE AN INCREASE OF $122,277. KEEPING IN MIND, THAT'S WITH US USING $8 MILLION OF NON-RECURRING MONEY, $5 MILLION FROM FUND BALANCE AND $3 MILLION FROM OPEB.

EDUCATION SERVICES. AS WE MOVE INTO EDUCATION SERVICES, JUST AS A REVIEW, THIS COVERS DIRECT INSTRUCTION IN OUR SCHOOLS AS WELL AS OUR DEPARTMENTS. AS WE MOVE ON TO THE NEXT SLIDE, WE WILL HIGHLIGHT A COUPLE OF LINE ITEMS FOR YOU AND WHERE THOSE INCREASES THAT WE HAVE SEEN, WE WENT LINE BY LINE WITH YOU AT THE BEGINNING OF THE MONTH AND... DR.

HAMMER, I'M SORRY, CAN I... SO I ASKED THE LEADERSHIP TEAM TO, JUST IN GETTING SOME BROAD FEEDBACK, FROM BOARD MEMBERS IN TERMS OF DETAIL. SOME OF WHAT WE'RE SHOWING AS AN INCREASE ISN'T NECESSARILY VOLUNTARY. IN SOME OF THESE LINES, YOU'LL SEE SOME PRETTY SIGNIFICANT LINES. IT'S A REQUIREMENT OF THE REVENUE THAT'S COMING IN FROM THE BLUEPRINT, AND DR. HAMMER WILL POINT THAT OUT.

I JUST WANT YOU TO KNOW WHERE YOU'RE SEEING BIG INCREASES, SUBSTANTIAL INCREASES, I WOULD SAY. I'VE ASKED THE LEADERSHIP TEAM TO PROVIDE SOME DETAIL AROUND THAT AS TO THE CIRCUMSTANCES. SO, AGAIN, FEEL FREE TO INTERRUPT AND ASK. SO AS WE TAKE A CLOSER LOOK, STARTING WITH INFOTECH, YOU'LL SEE THERE IS AN INCREASE THERE, AND THOSE WERE SOME OF THE PIECES THAT WE BROUGHT IN AS A RESPONSE TO OUR LEGISLATIVE AUDIT ABOUT CYBERSECURITY, AS WELL AS SOME CHANGEOVER WITH OUR PHONES TO FIND SOME MORE EFFICIENT USE OF OUR PHONES. MOVING INTO DOES. THIS LINE HAS AN INCREASE, AND THIS IS ONE OF THOSE PIECES THAT DR.

LAWSON WAS JUST SPEAKING ABOUT.

THIS IS AN INCREASE IN OUR NBC, OUR NATIONAL BOARD CERTIFICATION STIPENDS, AS WELL AS AN INCREASE IN OUR EXTRA PAY, EXTRA DUTY INCREASES, THOSE SERVICES THAT OUR TEACHERS PROVIDE FOR THOSE EXPERIENCES THAT DR. LAWSON WAS JUST SPEAKING ABOUT. WE HAVE AN INCREASE HERE. SORRY, DR. HAMMER. JUST FOR CLARIFICATION, IN LINE WITH THE WHOLE SPECIAL ED MONEY THAT THE STATE PROVIDES, BUT NOT ENOUGH, AND BC STIPENDS ARE THE SAME, CORRECT? THAT'S CORRECT. IT'S SPLIT BETWEEN THE COUNTY AND THE STATE. SO THE BOARD CAN SEE WHAT'S HAPPENING HERE.

IN THE FIRST FOUR ROWS, FOUR YELLOW ROWS, CROWDSTRIKE, THAT'S A FUNCTION OF THE AUDIT. IT'S AN AUDIT RECOMMENDATION FOR CONSECUTIVE YEARS. IF WE TURN OUR HEAD TO AN AUDIT RECOMMENDATION MULTIPLE YEARS AND SOMETHING WERE TO HAPPEN, IN TERMS OF, YOU KNOW, TECHNOLOGY BREACH. THE SECOND IS DIRECTLY, IS AN INCREASE THAT HAS TO GO DIRECTLY TOWARD NBC STIPENDS. THIRD IS THE INCREASE IN THE COST OF PLACEMENT. YOU ARE IN SCHOOLS ON A REGULAR BASIS. YOU HEAR

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EARLY CHILDHOOD, THERE'S AN INCREASE HERE OF IF WE, IT IS A BLUEPRINT, PILLAR ONE, AND WE ARE LOOKING TO EXPAND SOME OF OUR EARLY CHILDHOOD OPPORTUNITIES. AND THAT'S GOING TO COST SOME FUNDS TO START UP THOSE CLASSROOMS AND MAKE SURE WE HAVE FURNITURE THAT'S APPROPRIATE FOR STUDENTS THAT AGE. THIS WAS A MOVE, IF YOU RECALL, WHEN WE DISCUSSED IT, FROM SPECIAL EDUCATION TO STUDENT SERVICES OF THE RISING SUN IN-DISTRICT CLASSROOM, TO PROVIDE THAT CONTINUUM OF SERVICES FOR OUR STUDENTS.

SO THAT WAS MOVED OUT OF SPECIAL EDUCATION AND INTO STUDENT SERVICES, STUDENT PERSONNEL SERVICES.

AND ADDITIONALLY, THAT IS WHERE OUR COP FUNDS LIVE. FINALLY, GUIDANCE SERVICES DOWN HERE AT THE BOTTOM. THIS IS WHERE THE SWIN, SO THAT IS THE SUSQUEHANNA WORKFORCE NETWORK, CAREER COACHING COMES INTO PLAY. QUESTIONS ON THIS SLIDE? THESE INCREASES AND THE WHY. NEXT PAGE, WE HAVE OTHER INCREASES WE WANTED TO HIGHLIGHT TO YOU. ONE IS THE SECONDARY MATHEMATICS. THESE WERE ORIGINALLY IN OUR ESSER GRANTS AND ARE NOW RETURNING TO THE REGULAR BUDGET SO THAT WE CAN CONTINUE TO OPERATE OUR SECONDARY MATHEMATICS PROGRAMMING. SOCIAL STUDIES, THESE ARE SOME REQUIREMENTS FROM MSDE FOR CURRICULUM DEVELOPMENT CHANGES. AND SO THIS IS A PRIORITY TO HELP OUR STUDENTS IN GRADES SIX AND SEVEN GET THE CURRICULUM THAT THEY NEED TO BE SUCCESSFUL ON OUR ASSESSMENTS.

ATHLETICS, THIS IS WHERE THERE'S AN EPED INCREASE IN THE AREA OF ATHLETICS, AS WELL AS AS INCREASES IN OFFICIALS FEES AND ATHLETIC TRAINING COSTS. WE'VE HAD DISCUSSIONS AS RECENTLY AS YESTERDAY ABOUT THE POSSIBILITY OF TAKING A CLOSE LOOK AT OUR VARSITY SPORTS SCHEDULES AND SEE IF WE CAN'T MORE STRATEGICALLY SCHEDULE GAME TIMES. TO AVOID HAVING TO PAY FOR POLICE, AS WELL AS STAFF TO MONITOR THE WEAPONS DETECTION SYSTEM. I'M JUST GOING TO GO OFF THE TOP OF MY HEAD AND SAY, EACH BASKETBALL GAME THAT OCCURS AT NIGHT PROBABLY COSTS US.

NOT INCLUDING TRANSPORTATION AND OFFICIALS, UPWARDS OF $500 FOR TICKET TAKERS AND POLICE COVERAGE. SO, RIGHT THERE, IF YOU'RE NOT GENERATING THAT MUCH REVENUE IN TICKET SALES, AND FOR SOME OF THE SPORTS, DEPENDING ON A BASKETBALL GAME AT NIGHT AT ELKTON HIGH, YOU'LL SEE A LOT BIGGER CROWD THAN A BASKETBALL GAME AT NIGHT, LET'S SAY, AT NORTHEAST HIGH SCHOOL. SO WE'RE GOING TO REALLY TRY TO BALANCE THAT A LITTLE BIT TO SAVE SOME MONEY ON THAT END AS WELL. ONE FINAL THING I'D LIKE TO POINT OUT IS IN ALL OF THESE EDUCATION SERVICES, WE DID TAKE A DEEPER DIVE. AND WE REDUCED $3.4 MILLION OUT OF SEVERAL OF THESE LINES JUST TO GET BY AND TAKE SOME OF THOSE DECREASES. SO WE WANTED TO POINT THAT OUT TO YOU AS WELL. GOOD EVENING.

SO WE'VE PREVIOUSLY DISCUSSED THIS SLIDE AND THE AREAS OF ADMINISTRATIVE SERVICES THAT WE'LL BE COVERING. WE'LL SLIDE OVER TO THIS SLIDE. AGAIN, YOU'LL SEE HERE, WE'VE HIGHLIGHTED A FEW AREAS IN THE AREA OF THE BOARD OF EDUCATION. INCREASE, $63,925 FROM YEAR OVER YEAR. THE ADDITIONAL NOTE THAT YOU'LL NOTE IN THERE IS THAT EVERY OTHER YEAR OUR OPEB ACCOUNTS, OUR EVALUATION OF OUR OPEB ACCOUNTS OCCURS EVERY OTHER YEAR. SO THAT WILL BE THIS COMING YEAR, SO THAT'S REFLECTED IN THERE AS WELL AS... OUR LEGAL FEES, AND MS. OLSON KEEPS TABS ON THAT, AND WE WORK TO NAVIGATE THAT AND MAKE SURE THAT WE'VE GOT APPROPRIATE FUNDS ALLOCATED THERE.

DOWN BELOW, FIRST THE OFFICE OF FINANCE, AN INCREASE HERE OF $42,000. IF YOU'LL REMEMBER, THAT WAS AN INCREASE IN OUR PROPERTY LIABILITY, INSURANCE AND THINGS, SO THAT INCREASE IS REFLECTED THERE.

IN THE AREA OF PURCHASING, THIS IS OUR VEHICLE LEASES, COPIER LEASES, AND NEW COPIERS. WHAT WE TRY TO DO IS WE TRY TO LOOK AT OUR ENTIRE FLEET. AND BEFORE THEY AGE OUT AND OR GET INTO AN AGE WHERE WE NEED TO DO REPAIRS ON THEM THAT WE HAVE TO THEN OWN, WE TRY TO CYCLE THEM OUT AND BRING IN NEWER VEHICLES SO THAT WE KEEP OUR FLEET NEWER. AND SO THAT WE DON'T HAVE TO DO SOME MORE MAINTENANCE TYPE ACTIVITIES ON THEM. AND STUFF. THIS RECENT BATCH OF WEATHER HAS BEEN A CHALLENGE FOR OUR VEHICLES AND

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BECAUSE THAT FIRST, THAT LAST SNOWSTORM, NOT THIS WEEK BUT PREVIOUS, WAS HEAVY AND SO THAT TOOK A TOLL ON SOME VEHICLES AND SUCH. THE NEXT AREAS AND UTILITIES, AND YOU'LL SEE HERE. OUR ACTUAL INCREASE FROM FY 24 TO 25 WAS $590,000. SO WE'RE AT LOOKING AT AN INCREASE THERE OF A HALF A MILLION DOLLARS.

TO HOPEFULLY HOLD THE LINE THERE WITH OUR UTILITIES. AND AGAIN, THAT'S SUBJECT TO THE WEATHER. TWO WEEKS OF ZERO, YOU KNOW, SINGLE-DIGIT TEMPERATURES DOES NOT HELP US.

BUSES, YOU'LL SEE STUDENT TRANSPORTATION INCREASE HERE. I THINK THE QUESTION WAS ASKED LAST BUDGET MEETING. WE ANSWERED 12 BUSES SLATED FOR THIS YEAR. EIGHT OF THOSE 12 ARE AT THE 15-YEAR WINDOW.

THERE'S A 12-YEAR WINDOW, AND THEN CONTRACTORS CAN ASK FOR AN EXTENSION OF THREE YEARS TO 15 YEARS. SO THERE ARE FOUR BUSES THAT ARE IN THAT WINDOW. HOWEVER, TWO THAT ARE 12 YEARS OLD ARE DEAD.

THEY'RE BASICALLY SITTING IN LOTS RIGHT NOW BECAUSE TRANSMISSIONS HAVE FAILED, ENGINES HAVE FAILED, SO THEY'RE NOT ON THE ROAD RIGHT NOW, SO THEIR SHELF LIFE HAS ENDED AT THE 12-YEAR MARK. SO THERE MAY BE A COUPLE THAT WE WILL WORK WITH OUR CONTRACTORS TO SEE IF THEY CAN BE EXTENDED.

SO THAT COULD BRING THAT NUMBER DOWN, BUT WE DON'T KNOW UNTIL WE HAVE THOSE CONVERSATIONS.

DR. BUCK, I'M SORRY TO ASK YOU THIS. I'VE NEVER ASKED YOU THIS BEFORE. SORRY. HOPEFULLY, YOU CAN ANSWER. IT WOULD BE REALLY AWKWARD IF YOU CAN'T ANSWER. I NOTICED IT SAYS FIRST-YEAR PAYMENTS FOR THE 12 NEW BUSES.

HOW MANY YEARS DO WE PAY FOR THOSE BUSES, 12? SO WE PAY OUT FOR EVERY YEAR OF THAT. SO WE PAY ONE-TWELFTH OF THE COST OF THE BUS EACH YEAR? WELL, WE FRONT-LOADED IT BECAUSE WE HAD, AGAIN, IN RESPONSE TO OUR LEGISLATIVE AUDIT, A RETURN ON INVESTMENT. SO AS DR. LAWSON SPOKE ABOUT THE LEGISLATIVE AUDIT THAT CAME ABOUT, CYBERSECURITY, WE HAD A LEGISLATIVE AUDIT, AND WE HAD TWO YEARS OF THOSE LEGISLATIVE AUDITS.

THAT WERE REFLECTIVE OF A HIGH RETURN OF INVESTMENT. SO WE WORKED WITH OUR CONTRACTORS, WE WORKED WITH THAT ASSOCIATION TO KIND OF RESTRUCTURE THAT PAYMENT.

SO WE WOULD FRONT LOAD SOME OF THAT MONEY FOR THEM. AND THEN LESSER ON THE OUT YEARS, SO THAT IT HELPS. BECAUSE WHEN THEY PURCHASE A BUS, THEY'LL PURCHASE THAT BUS, BUT THEN THEY'VE GOT TO GO SECURE A LOAN FOR THAT BUS. AND THOSE LOANS RUN FIVE TO SEVEN YEARS, SO WE WORK WITH THEM. GREAT COOPERATION TO ACHIEVE THAT.

AND SO IT'S A LITTLE MORE LOADED ON THE FRONT END, BUT ON THE BACK END, THEN IT WILL DECREASE DOWN. SO IT'S PAID SOONER THAN 12 YEARS? IT'S PAID, YES, PAID OUT SOONER THAN 12. THAT'S WHAT I WAS ASKING. THANK YOU. THE NEXT AREA IS OPERATIONAL PLANT, AND YOU'LL SEE WE'VE GOT A MODEST INCREASE HERE OF $100,000. THAT'S TO ADDRESS THE OVERTIME RATES, WHICH IS REFLECTIVE OF OUR COLLECTIVE BARGAINING.

WITH OUR SUPPORT SERVICES, AS WELL AS THE WASTE REMOVAL AND HVAC SERVICE CONTRACTS THAT WE CURRENTLY HOLD. THE LAST ONE HERE ARE HVAC, AND IT'S A BIG BUMP HERE.

HOWEVER, WE HAVE SPENT CLOSE TO $700,000 EACH OF THE LAST TWO YEARS WHEN WE HAD BUDGETED FAR LESS THAN THAT. AND WHAT WE WOULD DO IS WE WOULD PAY THOSE BILLS OUT OF OUR FUND BALANCE. SO THIS ASK OF $693,000 TRULY REFLECTS WHAT OUR SPEND HAS BEEN.

FOR THE LAST COUPLE OF YEARS, AS WE'VE DISCUSSED, PARTS, LABOR, THEY'RE NOT GETTING ANY LESS, COUPLED WITH AGING FACILITIES AND AGING HVAC EQUIPMENT. THIS NEXT SLIDE SHOWS OUR UNRESTRICTED SALARIES AND FIXED CHARGES. AND AGAIN, SINCE WE MET LAST, WE'VE REDUCED THIS BY THE $7.2 MILLION NEEDED.

TO BALANCE THE BUDGET. SO THESE ARE THE POSITIONS IN THE UNRESTRICTED BUDGET. SO THESE INCLUDE THE REDUCTIONS, AND YOU'LL SEE THIS A LITTLE MORE CLEARLY WHEN WE MOVE TO SOME OF THE SLIDES WHERE WE COMPARE FY.26 AND 27. I THINK IT'LL GIVE YOU A LITTLE MORE INFORMATION. BUT YOU CAN SEE THAT THIS BUDGET PROPOSAL REDUCES 85 POSITIONS SINCE OUR JANUARY 28TH BOARD MEETING. AND WE'LL GET INTO SOME DETAIL ON THAT IN SOME OF THE UPCOMING SLIDES, AS IN THIS UPCOMING SLIDE. SO HERE'S THE BREAKDOWN FOR THE 85 POSITIONS. AGAIN, THIS IS ALL THE UNRESTRICTED BUDGET BECAUSE THAT'S THE BUDGET THAT WE'RE WORKING TO BALANCE RIGHT NOW. THESE ARE THE OBJECTS SO THEY CAN TELL YOU THE TYPES OF POSITIONS THAT ARE BEING REDUCED. AND SO JUST A NOTE OVER HERE, IF YOU LOOK AT OUR WORKFORCE, IF WE DIVIDE IT INTO ADMINISTRATORS, SUPPORT STAFF, AND TEACHERS, 7% OF THE NUMBER OF EMPLOYEES THAT WE HAVE ARE ADMINISTRATORS, 30% ARE SUPPORT STAFF, AND 63% ARE TEACHERS.

BUT IF YOU LOOK AT OUR WORKFORCE BY THE TOTAL SALARIES AND FIXED CHARGES, THE SALARIES AND FIXED CHARGES FOR OUR ADMINISTRATORS ARE 12% OF OUR WORKFORCE, 20% FOR SUPPORT STAFF, AND 68% FOR TEACHERS. AND SO OUR PROPOSED REDUCTIONS HERE INCLUDE 10 ADMINISTRATORS.

WHICH IS 12% OF THE REDUCTIONS, 19 SUPPORT STAFF, WHICH IS 22% OF THE REDUCTIONS, AND 56

[00:30:01]

LOOSELY, THERE IS. KEEP IN MIND. WE HAVE TO MAKE SURE WE HONOR THE 75-25 MINIMUM SCHOOL FUNDING. SO THAT'S A PLAYER HERE.

DISPROPORTIONATELY, THEY ARE LIKELY TO COME FROM OUR MORE AFFLUENT SCHOOLS.

BUT HAVE WE ACTUALLY GONE IN AND DIRECTED THE TWO EXECUTIVE DIRECTORS TO START TO IDENTIFY THESE POSITIONS? WE HAVE NOT. MIND YOU, WE HAVE AN EARLY RETIREMENT OPTION OUT THERE. AS OF NOW, I'M LOOKING AT IT NOW, WE HAVE 28 TAKING US UP ON THAT. SO WE WILL HAVE TO MASSAGE WHERE THESE POSITIONS COME FROM.

IN TERMS OF THOSE RETIRING, WHERE WILL PEOPLE TAKE CUTS AND RECONCILE THE DIFFERENCE. AND IT REALLY IS A SIT DOWN WITH A LIST AND START MOVING THE PIECES. CONSIDERING THESE FOLKS WHO HAVE TAKEN ADVANTAGE OF THIS, THESE ARE YOUR HIGHER DOLLAR FOLKS RIGHT THERE. AND SO WE ARE TALLYING AS WE GET THESE NAMES. EXACTLY HOW MUCH THAT'S GOING TO SAVE US IN SALARY AND HOW MUCH IT'S GOING TO SAVE US IN FIXED CHARGES.

SO WHEN WE DO THAT... DOES THAT ANSWER YOUR QUESTION, MR. HAMPTON? I THINK, YES, IT DOES. SO, MORE THAN LIKELY, IT'S THE 17 NON-TITLE I SCHOOLS. WELL, I THINK EVERYBODY'S GOING TO FEEL THIS.

I WOULDN'T SAY THAT NOBODY'S GOING TO WALK AWAY SCOT-FREE, THAT'S FOR SURE. AS A RULE, WILL THEY TAKE MORE OF A REDUCTION THAN OTHERS? I THINK THE ANSWER TO THAT IS YES. SO WE LOOK AT THIS NUMBER NOW, THAT SAYS 85, BUT BEARING IN MIND THAT THIS COULD CHANGE, AND IT SOUNDS LIKE IT'S GOING TO, BECAUSE WE'RE GOING TO SEE A SALARY SAVINGS WITH RETIREMENTS TO HELP REDUCE THE POSITION CUTS. AND WE WON'T KNOW THAT UNTIL LATER ON. THEN WE VOTE IN JUNE FOR A BALANCED BUDGET, AND WE'LL HAVE A BETTER IDEA THEN.

THIS IS THE WORST-CASE SCENARIO, ASSUMING ALL THE REVENUE COMES IN THE WAY THAT WE'RE PROJECTING. THIS HOPE GETS HEARTBURN WHEN I START DOING MY— I KNOW. I MEAN, I'VE DONE IT, TOO. BUT IF YOU SAY 28 POSITIONS, EACH WITH FIXED CHARGES, PROBABLY IN THE NEIGHBORHOOD OF $120,000, NOW THERE'S GOING TO BE A 20% GIVEBACK OFF THAT. AND THEN YOU START TO DO THE MATH OF 28, YOU'RE PROBABLY UPWARDS OF 3 MILLION AS IT IS NOW. AND SO THAT'S 3 MILLION OFF THE 7.1 MS. SOPA JUST SHOWED. NOW, THERE'S A LOT OF MOVING PARTS TO WHAT I JUST SAID, BUT THIS IS BACK-OF-THE-ENVELOPE MATH.

BUT THAT GETS TO THE POINT OF WHAT, MS. HAWLEY'S SAYING.

WITH KNOWING NOW THAT WE HAVE 28 THAT HAVE... SIGNED UP ALREADY, ERIC. DO WE FEEL THAT OUR ATTRITION, THAT WITH OUR NORMAL ATTRITION, WILL MAKE IT SO WE DON'T HAVE TO HAVE REAL JOB CUTS? AND THIS WILL BE, DOES IT FEEL CLOSER TO THAT? I HOPE SO. THAT'S A, I'LL SAY THIS, THAT'S A GOAL.

WE'RE GOING TO DO EVERYTHING WE CAN TO MAKE THAT HAPPEN. CAN I SAY FOR SURE, A LOT OF IT STARTS TO BOIL DOWN TO CERTIFICATIONS. IF RISING SUN HIGH SCHOOL HAS ONE CALCULUS A-B TEACHER. AND THEY HAVE A VACANCY IN MATHEMATICS. WE'VE GOT TO, WE'VE GOT TO, YOU KNOW, WE CAN'T HAVE THAT. IT GOES BACK TO WHAT I STARTED WITH.

WE HAVE TO WORK TO CONTINUE TO HONOR THE TRADITIONAL, COMPREHENSIVE PUBLIC EDUCATION EXPERIENCE THAT THESE KIDS GET.

BUT GENERALLY SPEAKING, WHAT WE'RE TRYING TO DO IS THAT'S A GOAL. SOME OF THESE POSITIONS WILL HAVE TO BE FILLED. MANY WON'T. AND WE WILL TRY TO GET AT OUR CUTS THROUGH THAT.

BUT THE ONLY CURVEBALL IN ALL THIS, I JUST HAVE TO REITERATE, IS CERTIFICATION, ESPECIALLY AT THE HIGH SCHOOL LEVEL. I WAS JUST GOING TO SAY TO PIGGYBACK ONTO THAT, WE'RE JUST TALKING ABOUT POSITION CUTS, AND WE HAVEN'T NECESSARILY ALIGNED THEM WITH PEOPLE. SO SOME OF IT IS RESTRUCTURING ADMINISTRATIVELY, SOME OF IT'S AT THE SCHOOLS, AS DR. LAWSON HAD MENTIONED. SO RIGHT NOW, THIS IS OUR BEST WORK TO IDENTIFY POSITIONS. AND ALSO, AS DR. LAWSON SAID, WHEN YOU'RE MORE EXPENSIVE, PEOPLE RETIRE AND RESIGN, YOU SAVE MORE MONEY BY CUTTING FEWER POSITIONS.

ONE 30-PLUS YEAR TEACHER WITH LONGEVITY AND NATIONAL BOARDS MIGHT SAVE US TWO CONDITIONAL TEACHERS ON THE BACK END.

REALLY, UNTIL WE GET TO THE POINT WHERE WE REALLY KNOW WHO THE PEOPLE ARE AND THIS REALLY ALL COMES TOGETHER. MAY, JUNE, WHEN WE CAN REALLY PUT ACTUAL NAMES AND DOLLAR AMOUNTS

[00:35:02]

AND I KEEP BRINGING IT UP.

BY ME, BY PEOPLE POKING ME. I WOULD WANT TO MAKE A COMMITMENT, AND I'LL SAY THIS PUBLICLY FOR MYSELF, THAT IF WE GET TO THE POINT OF SOMEBODY LOSING A JOB AND BEING SENT HOME, WE LOSE NICE-TO-HAVE STUFF FIRST BEFORE WE LOSE PEOPLE. I KNOW WE'RE TALKING POSITIONS RIGHT NOW. HOPEFULLY THAT DOESN'T GET TO PEOPLE BECAUSE PEOPLE HAVE RETIRED, QUIT, OR WHATEVER THE CASE MAY BE.

BUT IF IT GETS TO PEOPLE AND WE CAN SAVE A PERSON THEIR JOB.

VERSUS DOING UNIVERSITY OF DELAWARE GRADUATION, I KNOW WE'RE NOT MAKING THAT COMMITMENT NOW, BUT I WOULD HOPE THAT WE WOULD SAVE THE PERSON'S JOB AND GET RID OF THE UNIVERSITY OF DELAWARE GRADUATION. THE UNIVERSITY OF DELAWARE GRADUATION, THOUGH, IS BASICALLY $30,000 MORE THAN WHAT WE... IT'S $80,000.

BETWEEN THE SCHOOLS AND THE BOARD, I THINK 80 SOMETHING THOUSAND TOTAL. WELL, BUT IN ADDITION. LET'S SEE HOW IT GOES THIS YEAR. THAT WAS WHAT OUR PLAN WAS ORIGINALLY. AND THE SCHOOLS WERE, YOU KNOW, BASICALLY IT'S 45,000 FOR THE SCHOOLS, AND THEN 45 OR SOMETHING. BECAUSE THE OTHER HALF IS BEING PAID FOR BY THE SCHOOLS. YES. AND THE SCHOOLS WERE NEVER PAYING FOR STAFF. SO IT IS. BUT 30,000 MORE. I'M OLD TO GET WHAT YOU'RE SAYING. I'M SORRY.

$30,000 MORE THAN WE WERE ALREADY PAYING FOR GRADUATION. WELL, I WOULD SAY, LET'S ADD IT ALL TOGETHER.

LET'S SAY ANYTHING THAT'S A NICE-TO-HAVE SHOULD DISAPPEAR BEFORE A PERSON LOSES THEIR JOB. GET RID OF GRADUATION.

GET RID OF A MORE EXPENSIVE GRADUATION.

GET RID OF A FIELD TRIP. IF IT MEANS A PERSON OR A FIELD TRIP, I WANT TO KEEP THE PERSON.

THAT'S WHAT MY SUGGESTION WOULD BE, THAT THE PERSON GETS SAVED BEFORE SOMETHING THAT'S FANCY AND NICE. AND I'LL GIVE UP ANYTHING ELSE THAT'S IN THAT.

EVEN IF IT'S $5,000 AT A TIME, WE HAVE SOME OF THOSE THINGS THAT WE COULD GIVE UP VERSUS SOMEBODY LOSING THEIR JOB. AND THAT'S JUST A BROAD STROKE TO SAY THAT. I THINK IT WOULD MAKE SENSE TO SAVE PEOPLE IF WE CAN. I HOPE WE DON'T GET TO LOSING PEOPLE AND WE'RE JUST LOSING POSITIONS. THAT'S OUR GOAL. THAT'S OUR GOAL. SO THE NEXT SLIDE HERE TAKES THE EDUCATION SERVICES SLIDES AND THE ADMIN SERVICES SLIDES, ALL THOSE PROGRAMS AND DEPARTMENTS.

ADDS IT TO THE SALARIES AND FIXED CHARGES THAT WE SAW, AND GIVES YOU A TOTAL UNRESTRICTED BUDGET SUMMARY, SO, A $9.9 MILLION INCREASE OVER FY26, WHICH IS A 3.8% INCREASE. SO YOU CAN SEE, WE'VE MADE SIGNIFICANT CUTS SINCE THE JANUARY 28TH BOARD MEETING. THE NEXT FEW SLIDES GO THROUGH OUR RESTRICTED REVENUE, KEEPING IN MIND FOR EACH OF THESE, WE HAVE THE GRANT, WE HAVE THE 26 APPROVED FTES.

THE POSITIONS, THE 27 REQUESTED FTES, AND WHAT ANY INCREASE OR DECREASE. AND KEEP IN MIND THAT THESE ARE THINGS THAT HAVE HAPPENED THIS YEAR, BECAUSE REMEMBER, WHEN WE APPROVED THESE LAST YEAR, IT WAS BEFORE THE GRANTS ROLLED OVER AT THE END OF THE RESTRICTED BUDGET PERIOD. WE'VE ALSO ADDED THE READ AND LEAD GRANTS, SO THESE WERE SOME ADDITIONS THAT HAPPENED DURING FY26, BUT AFTER THE FY26 BUDGET WAS APPROVED.

AND THE ONLY ADDITIONAL POSITION THAT YOU SEE ANYWHERE IN THIS BUDGET IS THE ONE JROTC TEACHER FOR ELKTON HIGH TO CONTINUE THAT PROGRAM. AND THAT PERSON IS PAID HALF OUT OF THE RESTRICTED BUDGET AND HALF IN THE UNRESTRICTED BUDGET. SO THESE ARE REALLY JUST SHOWING YOU WHAT'S ALREADY IN THE RESTRICTED BUDGET. SO HERE WE HAVE MOST OF OUR FEDERAL GRANTS, AND THEN WE HAVE SOME READ AND LEAD AND A HOMELESS GRANT. HERE ARE ALL OF OUR SPECIAL ED GRANTS. AND AGAIN, KEEPING IN MIND THAT THE AMOUNT IS VARIABLE, BUT MOST OF THESE GRANTS THAT WE HAVE HERE TEND TO BE WITHIN THE SAME DOLLAR AMOUNT IN THE BALLPARK FROM YEAR TO YEAR. AND HERE WE HAVE OUR JUDY CENTER GRANTS, OUR STATE GRANTS. THESE ARE THE RESTRICTED SALARIES AND FIXED CHARGES. SO ON THE PAST FEW SLIDES, YOU SAW THE STAFF MEMBERS, THE POSITIONS ASSOCIATED WITH EACH GRANT. THIS IS THE COST OF THOSE POSITIONS AND FIXED CHARGES, AGAIN, ALL PAID FOR WITH ALL OF THESE GRANT FUNDS. THESE ARE THE POSITIONS THAT ARE PART OF THE RESTRICTED BUDGET. SO, 101 POSITIONS ARE PART OF ALL OF THESE GRANT FUNDS. THIS IS THE TOTAL RESTRICTED BUDGET SUMMARY. SO AGAIN, TAKING ALL OF THE GRANTS AND PUTTING THEM TOGETHER. AND AGAIN, THIS INCREASE HERE IS WHAT'S ALREADY HAPPENED DURING FY26. THIS IS CARRYING THIS BUDGET FORWARD.

SO IF WE TAKE THE... THE POSITIONS THAT I SHOWED YOU FOR THE UNRESTRICTED BUDGET AND THE RESTRICTED BUDGET, AND WE PUT THEM TOGETHER, THIS GIVES YOU OUR TOTAL OPERATING BUDGET SUMMARY OF POSITIONS.

SO IT'S 2009, AND HERE'S WHERE

[00:40:02]

BUT JUST POINTING OUT THAT THE 37, 38 EMPLOYEES HIRED THIS. SCHOOL YEAR WERE HIRED BECAUSE THERE WAS A NEED.

CORRECT. THIS IS OUR TOTAL OPERATING BUDGET SUMMARY. SO, WHEN YOU BRING TOGETHER YOUR RESTRICTED AND YOUR UNRESTRICTED BUDGET, ALL THE PROGRAMS, DEPARTMENTS, SALARIES, AND FIXED CHARGES, YOU CAN SEE. IT'S $11.3 MILLION INCREASE, WHICH IS A 4.1% INCREASE OVER FY26. SO WE'VE MADE SIGNIFICANT REDUCTIONS SINCE THE JANUARY 28TH BOARD MEETING. AND THIS BRINGS US TO OUR OPERATING BUDGET REQUEST.

SO THIS REQUEST TO THE COUNTY IS FOR $115 MILLION. THIS IS $10 MILLION OVER THE APPROPRIATION THAT THEY'RE CURRENTLY GIVING US FOR FY26. IT INCLUDES STATE RESTRICTED AND UNRESTRICTED AT $149.3 MILLION, FEDERAL AT $12.5 MILLION, OUR OTHER REVENUE AT $4.6 MILLION. SO KEEP IN MIND, THIS IS THE OPEB. AND THIS IS OUR MISCELLANEOUS REVENUE, INTEREST REVENUE, AND USE OF OUR FUND BALANCE. SO, OUR TOTAL OPERATING BUDGET REQUEST IS $286,894,677. WAS THE, I THINK IT WAS $298 MILLION WHEN WE DID THE, THE ORIGINAL NUMBER, I THINK WAS $298 OR SOMEWHERE AROUND THERE? BACK IN JANUARY. WAS THAT NUMBER THE NUMBER THAT WE WOULD HAVE NEEDED TO CONTINUE SERVICES AS OF TODAY, OR WERE THERE SOME INCREASES IN THERE? DO WE KNOW WHAT THE NUMBER WOULD BE TO CONTINUE SERVICES AS OF TODAY? IS IT SOMEWHERE BETWEEN THAT $298 AND $286? I KNOW WE DON'T REALLY KNOW THAT, BUT WOULD IT BE FAIR TO SAY IT'S PROBABLY $7 MILLION HIGHER THAN THAT? WE DIDN'T INCLUDE NEW POSITIONS, BUT THERE WERE OTHER THINGS LIKE CURRICULUM, WRITING AND RESOURCES AND OTHER THINGS THAT ARE IMPORTANT THAT HAVE BEEN REDUCED TO TRY TO. MAKE OUR REVENUE EXPENSE, BUT THE FIRST BUDGET WITH THE OTHER WITH THE EXTRA. THE 85 POSITIONS DIDN'T INCLUDE ANYBODY NEW EXCEPT THAT JROTC TEACHER. SO SALARIES AND FIXED CHARGES, WHICH IS 79 PERCENT OF THE BUDGET, THAT WAS WHAT WE NEEDED. THAT NUMBER WAS VERY FAIR TO SAY.

THAT'S WHAT WE WOULD NEED TO CONTINUE. SERVICES AS OF TODAY. WOULD NOT REALLY, MAYBE JUST SLIGHTLY A LITTLE BIT MORE MONEY FOR SOME DIFFERENT THINGS, BUT IT WAS CLOSE. YEAH, I THINK, YOU KNOW, ADMIN SERVICES AND DOS SIDE.

IN TERMS OF PROGRAMS NEEDS, DO WE NEED MORE MONEY TO WRITE MATH CURRICULUM FOR MATH RESOURCES? WE DO. DO WE NEED MORE FOR SOCIAL STUDIES RESOURCES? WE DO. HAVE THEY BEEN PEELED BACK SINCE JANUARY 25TH, I THINK IT WAS? WE HAVE.

BUT WE HAVEN'T, WE DIDN'T ADD ANY POSITIONS INTO THAT NUMBER FROM THE START. SO FROM A STAFFING PERSPECTIVE, WHAT YOU'RE SAYING IS TRUE.

THE JANUARY PRESENTATION TO YOU ALL WAS SIMPLY BRINGING THAT NUMBER OF STAFF FORWARD. THE REAL DIFFERENCE, THEN, WAS SOME ENHANCED PROGRAM REQUESTS.

COMING BACK NOW, HAVING TO REDUCE 11 MILLION, SEVEN AND CHANGE OF WHICH ARE STAFF, WE'VE CLEARLY TAKEN A KNIFE TO THE PROGRAM REQUESTS, AND WE'VE REDUCED UPWARDS RIGHT NOW. TENTATIVELY 80 POSITIONS.

BUT AGAIN, TO REITERATE, THOSE POSITIONS... PRESUPPOSE A TEACHER'S STEP SIX. IS THAT WHAT YOU WERE THINKING? I USED SOME MORE ACTUAL NUMBERS.

OKAY, SO, BUT WHAT I'M SAYING IS THAT WE'RE REALLY TRYING TO BE SPECIFIC HERE. AND, YOU KNOW, LIKE RIGHT NOW, WE ARE IN THE PROCESS OF, FOR THESE 28 PEOPLE WHO ARE TAKING ADVANTAGE OF THE EARLY RETIREMENT INCENTIVE, WE'RE IN THE PROCESS OF ADDING COLUMNS THAT HAS THEIR SALARY AND THE COST OF THEIR FIXED CHARGES, AND THEN WE CAN ADD THOSE TWO, BACK OUT 20%. AND THAT GOES TOWARDS THE 7.1 MILLION IN CUTS. SO WHAT I CAN TELL YOU IS THAT THAT MONEY WILL BE MORE THAN WHAT WE THOUGHT IT WOULD BE. PER STAFF PERSON IN THE CUT OF 80-SOME POSITIONS. DOES THIS MAKE SENSE? YES. SO, AGAIN, IT GOES BACK TO MS. HAWLEY'S POINT. THIS DOES NOT TRULY SHAKE OUT UNTIL JUNE. AND I'M PROCESSING, MR. FERDINANDO,

[00:45:02]

A COUPLE THINGS I WOULD ASK YOU TO CONSIDER. RISING SUN HIGH SCHOOL HAS TO HAVE A PHYSICS PROGRAM. AND IF THERE'S A VACANCY IN PHYSICS, WE'RE GOING TO FILL IT. AND AT THE SAME TIME, WE MAY RIFF AN ELEMENTARY TEACHER, WHERE THAT CERTIFICATION IS MUCH MORE GENERIC. WE KNOW WE'RE GOING TO HAVE PROBABLY AN ENGLISH POSITION IN A MIDDLE SCHOOL.

THAT CERTIFICATION IS A LITTLE DIFFERENT THAN AN ELEMENTARY POSITION. SO WE MIGHT NOT BE ABLE TO TAKE AN ELEMENTARY TEACHER.

AND SLIDE THEM INTO A MIDDLE SCHOOL TEACHING POSITION BECAUSE OF THE CERTIFICATION.

SO THAT'S THE ONLY THING I WOULD ASK YOU ALL TO BE SENSITIVE TO, IS THAT SOME OF THESE POSITIONS SIMPLY HAVE TO BE FILLED BECAUSE OF CERTIFICATION ISSUES. NOT ALL TEACHERS ARE THE SAME. AND SO IF YOU HAVE A PE TEACHER AND WE HAVE ONE TOO MANY, THAT PERSON MAY GET RIFFED.

WHILE WE ARE IN THE NEED FOR THREE SPECIAL ED TEACHERS.

NOW, IF THAT PE TEACHER CAME FORWARD AND SAID, I'D BE INTERESTED IN GOING BACK TO SCHOOL AND GETTING CERTIFIED, IN SPECIAL ED, WELL, THEN WE TRY TO KEEP THEM ON AS A CONDITIONAL AND RUN THEM THROUGH THAT PROCESS.

THAT IS ALL THE YEARS I'VE BEEN IN THIS SYSTEM NOW, 17 YEARS, WE'VE RIFFED ONCE. AND OUR GOAL IS TO NOT RIFF, BUT WE WITHHOLD THE RIGHT TO NOT FILL POSITIONS AS THEY VACATE. I'M NOT TRYING TO GET TOO FAR IN THE WEEDS. I'M JUST TRYING TO BE HONEST WITH THE EXACT STUFF WE TALK ABOUT AT THE TABLE WHEN WE'RE MAKING THESE DECISIONS. AND THE 10 ADMINISTRATIVE POSITIONS WOULD? BE PUSHED OUT TO THE SCHOOLS, PROBABLY IN SOME WAY, IF IF IT WORKS, DR. HAMMER AND HER TEAM HAVE REALLY DONE A NICE JOB OF TRYING TO RESTRUCTURE THE ANS STAFF IN SUCH A WAY. THAT PUSHES MORE SCHOOL, MORE SUPPORTS INTO SCHOOLS AND STREAMLINES WHAT WE'RE DOING AT THE COORDINATOR LEVEL.

THEY'VE HAD ONE-ON-ONE MEETINGS WITH EVERYBODY INVOLVED, DR.

HAMMER, WHY DON'T YOU SHARE A LITTLE BIT WHAT YOU'RE THINKING? IF YOU COULD, JUST A BRIEF, GROUP 0002, LIKE WHAT ARE THOSE POSITIONS, COORDINATORS, SUPERVISORS, LIKE, WHAT ARE THEY CURRENTLY DOING IN ADMIN? 0002, IS THAT STATE BUDGET CATEGORY? THAT'S STATE BUDGET CATEGORY, YEAH. IT'S COORDINATORS AND SUPERVISORS, I THINK, IS WHAT IT IS. SO THESE FOLKS ARE INSTRUCTIONAL COORDINATORS. SO THEY SERVE AS A LIAISON FROM MSDE. THEY TRANSLATE THAT INFORMATION INTO THE CURRICULUM, DOCUMENTS, LESSON PLANS, MATERIALS, SUPPLIES. PUSH THAT OUT INTO SCHOOLS, GO OUT AND MAKE SURE THAT THOSE PROGRAMS ARE BEING IMPLEMENTED WITH FIDELITY SO THEIR STUDENTS AND STAFF CAN BE SUCCESSFUL. WE HAVE LOOKED TO CREATE A DESIGN THAT CONSOLIDATES THE SUPPORT THAT WILL BE NOW PROVIDED OUT INTO SCHOOLS. THIS IS WHAT BLUEPRINT'S ASKING US TO DO.

IT'S DECENTRALIZING. AND WE HAD 26 MEETINGS TODAY, THIS MORNING. WITH EVERY ONE OF THOSE FOLKS, ONE-ON-ONE WITH THEM, TO TALK ABOUT HOW THAT RESTRUCTURING IS GOING TO TAKE PLACE AND THE MOVEMENT THAT'S GOING TO HAVE. OUR GOAL WAS TO CREATE A DESIGN THAT'S GOING TO BE SUSTAINABLE, THAT WILL STILL ALLOW US TO HAVE THAT LIAISON. WORK WITH THE EXPECTATIONS FROM THE STATE, AND ALSO PROVIDE THE SUPPORT THAT IS NEEDED IN THE MOST EFFICIENT WAY POSSIBLE. AT SOME POINT, LOOKING FOR SEVEN, TEN YEARS DOWN THE ROAD, THE BLUEPRINT IS REQUIRING THE CAREER LADDER TO COME INTO PLAY. AND THAT'S THAT PILLAR TO WORK. SO WE'RE LOOKING TO SEE THAT LEAD.

TEACHERS WILL BE THE ONES TAKING ON SOME OF THIS CONTENT EXPERT WORK TO BE ABLE TO PROVIDE THAT LIAISON, WORK WITH THE MSDE AND THEN PROVIDE SUPPORT DIRECTLY INTO THE SCHOOLS. SO WE'RE IN WHAT WE'VE CALLED THE MESSY MIDDLE RIGHT NOW OF THE IMPLEMENTATION OF THE BLUEPRINT. AND WE ARE TRYING TO GET OURSELVES POISED SO THAT WE CAN GET TO WHAT THE LAW IS PRESCRIBING FOR US. I HAD, I THINK, A RATHER FRANK CONVERSATION WITH A GROUP OF ADMINISTRATORS LAST THURSDAY, WAS IT? WILL THINGS BE LOST? THEY WILL. WILL WE BE ABLE TO DO AS MUCH? WE WON'T.

AND WE JUST HAVE TO UNDERSTAND THAT AND ACCEPT THAT. AND, YOU KNOW, THESE COORDINATORS PRIMARILY THAT DR. HAMMER AND HER TEAM MET WITH TODAY. THESE ARE CECIL COUNTY PEOPLE THAT HAVE BEEN WITH US, TYPICALLY 25, 30, 35 YEARS. THESE ARE NOT FOLKS THAT JUST GOT HIRED LAST YEAR AND THEY KIND OF CAME IN AND IT'S ALWAYS BEEN KIND OF MARKED. THESE ARE PEOPLE WHO CAME IN WITH US AS TEACHERS, ASSISTANT PRINCIPALS, PRINCIPALS, NOW THEY'RE COORDINATORS, AND ALL OF A SUDDEN,

[00:50:01]

BUT I'VE BEEN REAL, REAL CLEAR THAT THE FOCUS OF THIS BUILDING'S SUPPORT HAS TO BE IN THE SCHOOLS. AND IF WE DON'T GET WHAT WE ARE ASKING FROM THE COUNTY EXECUTIVE, THERE WILL BE MORE. THERE WILL BE MORE. WHAT DOES THAT LOOK LIKE RIGHT NOW? I'M PROBABLY NOT PREPARED TO SAY. I DON'T WANT TO GET OUT IN FRONT OF THIS ISSUE UNTIL WE HAVE IDEAS.

BUT JUST KNOW THAT THE FOCUS OF THE ENERGY IN THIS BUILDING IS GOING TO END UP IN SCHOOLS. IF WE'RE GOING TO ASK TEACHERS TO HAVE BIGGER CLASSES, AND THAT COULD BE THE NET EFFECT IN SOME OF OUR SCHOOLS, WHEN A TEACHER PICKS UP THE PHONE AND THEY NEED HELP, WE HAVE TO HAVE THAT HELP GOING THERE.

AND SO WE'RE PREPARED TO DO IT, AND I WILL GIVE KUDOS TO OUR COORDINATORS. THEY'RE JUST TROOPERS. THEY KNOW. AND AGAIN, THIS IS THE NEW NORMAL. I THINK CARROLL COUNTY'S EXPERIENCE IN THE LAST TWO YEARS HAS PROVED INSTRUCTIVE. THEY DID THIS TWO YEARS AGO, AND I WISH IT WERE DIFFERENT.

BUT MAKE NO MISTAKE, THIS IS WHAT THE BLUEPRINT INTENDS.

THEY WANT THE RESOURCES GOING TO THE STUDENTS WHO HAVE THAT SIGNIFICANT NEED. THE CONFUSING PART ABOUT ALL THAT IS THAT THERE'S A LAW FROM THE STATE.

THERE'S NOT ENOUGH MONEY TO DO WHAT IT NEEDS TO DO, AND THERE'S NOT A REAL CLARITY AS TO HOW. I'M NOT SURE THE STATE'S SAYING, OKAY, NOW THE COUNTY NEEDS TO START PAYING MORE OF THE SHARE. THEY'RE NOT SAYING THAT, BUT THAT'S WHAT IT SOUNDS LIKE.

BUT IF THEY WERE, THEN WHY ISN'T? THE ARGUMENT THAT I'VE HEARD IS, WHY ISN'T THE MOE NUMBER MADE HIGHER BY THE STATE, SAYING, HEY, THE COUNTY NEEDS TO PAY MORE? BECAUSE IF THE STATE KNOWS THAT YOU NEED $280 MILLION AND THEY GIVE US $140 MILLION, THEY SHOULD SAY THAT THE COUNTY NEEDS TO DO $140 MILLION. AND ALMOST MAKE IT MANDATORY, WHICH WE DON'T WANT THAT.

OBVIOUSLY, WE DON'T WANT THE STATE DICTATING ANYTHING LIKE THIS. BUT, LIKE, I GUESS, WITHOUT SAYING IT, THAT'S WHAT'S BEING SAID. THEY WANT THE COUNTIES TO TAKE MORE. I MEAN, THEY PUSHED A MILLION DOLLARS ONTO OUR COUNTY FOR PENSIONS. SO THAT IS WHAT THEY'RE SAYING WITHOUT DICTATING IT, I GUESS. YOU KNOW, WE CAN'T FORGET THAT FOR THREE YEARS IN A ROW, WE WERE A MAINTENANCE OF EFFORT. YOU KNOW, WE'RE.

TWO YEARS, WE WERE THE BOTTOM FUNDED SCHOOL SYSTEM IN THE STATE OF MARYLAND. AND SO TO IMPLEMENT THE BLUEPRINT, WITH BEING AS POORLY FUNDED AS WE WERE, YOU'RE GOING TO TAKE YOUR HIT. THERE JUST ISN'T ENOUGH MONEY. I'M SORRY.

YOU KNOW, IT PROBABLY GOES AGAINST THE COMPANY LINE, BUT I'VE BEEN SAYING NOW FOR THE BETTER PART OF FOUR YEARS, THE FOUNDATION IS NOT ENOUGH.

IT'S JUST THAT SIMPLE. WE ACTUALLY HAD A CONSULTANT, AN EXPERT, COME IN, REVIEW WHAT IT IS WE'RE DOING, AND BASICALLY, AND WE'RE NOT THE ONLY SYSTEM SAYING THIS.

CONSULTANTS ARE TELLING US, YEAH, YOU'RE RIGHT. THERE'S NOT ENOUGH MONEY TO RUN YOUR PROGRAMS HERE. AND SO UNTIL WE START TO SEE STATUTORY CHANGES, I THINK THIS IS THE NEW NORMAL, AND THAT'S REALLY WHY I'M AS DUG IN AS I AM, BECAUSE IF YOU SEE THE STATUTE, THAT GOES OUT TO 32, 33, WE BETTER GET USED TO THIS BECAUSE THIS IS HOW IT'S GOING TO BE.

AND SOME OF THIS, I'M ASKING SOME OF THESE THINGS TO KIND OF JUST GET IT SAID OUT LOUD.

SO PEOPLE THAT ARE LISTENING CAN HEAR THIS AS MUCH AS I NEED THE INFORMATION FOR MYSELF. SO SOMETHING LIKE... THE SUSQUEHANNA WORKFORCE NETWORK, $719 MILLION. WE'RE TOLD YOU HAVE THIS MONEY, $719,000. $719 MILLION, THAT'D BE GREAT. $719,000, THEY'RE SAYING THIS IS FOR THE SUSQUEHANNA. WE JUST PASS IT THROUGH. IF SOMEBODY THINKS THAT'S NOT A GOOD THING, THEY SHOULDN'T BE TALKING TO US ABOUT THAT OR YOU. THAT WOULD BE A STATE LEGISLATOR AT THAT POINT, CORRECT? CORRECT. SO ARE THERE PEOPLE LIKE WITHIN MABE, WITHIN PASAM, SAYING, WE WANT CONTROL OVER THAT MONEY LOCALLY? BECAUSE WE THINK WE COULD DO MORE WITH THAT THAN WHAT YOU'RE TELLING US. THEY'RE NOT THE ONLY ONE I'M TALKING ABOUT.

JUST IN GENERAL, I THINK IF WE HAD THAT $719,000, RATHER THAN LOSING A PHYSICS TEACHER, WE MIGHT TAKE $100,000 FROM THERE AND MOVE IT HERE, BUT WE'RE NOT ALLOWED TO. ARE WE MAKING ARGUMENTS ON OUR END, OR CAN WE, OR IS THAT REALLY NOT EVEN? YES. MS. HAWLEY WOULD HAVE HER OPINION. I'VE BEEN ONE OF THE LOUDEST VOICES ON THE BLUEPRINT, AND IT'S EXHAUSTING. NOT PICKING ON SWN, IT'S JUST AN EASY ONE TO BRING UP, BUT WE DON'T KNOW WHAT THEY'RE DOING WITH THAT MONEY, AND IT'S NOT IN OUR CONTROL, BUT IT'S STILL WITHIN OUR BUDGET, WHICH IS WEIRD. YOU KNOW, THERE'S AN MOU, A MEMORANDUM OF UNDERSTANDING. THEY ARE PROVIDING US WITH JOB COACHES. THERE IS SOME FRUSTRATION ON OUR END ABOUT THEIR ACCOUNTING AND THE INTERFACE WE HAVE WITH THEIR FINANCIAL PEOPLE, BUT WE DO HAVE JOB COACHES COMING INTO ALL OF OUR HIGH SCHOOLS, AND ONE PUSHES INTO THE MIDDLE SCHOOLS. AND WE HAVE ONE HERE THAT WORKS.

THEY'RE FUNDING ONE PERSON WITH DR. HANDLER, BUT PAINTED WITH A BROAD BRUSH. KEEP IN MIND, A COUPLE YEARS AGO, THEY GOT $4 MILLION. THAT QUADRUPLED THEIR BUDGET. NOW THEY'RE SPLIT BETWEEN US AND HARTFORD, BUT THE INFLUX OF BLUEPRINT MONEY IN THE

[00:55:02]

ABOUT THE PERFORMANCE OF OUR STUDENTS, BUT YET THERE'S MONEY THAT'S BEING SPENT THAT WE DON'T HAVE ANY ABILITY TO USE FOR WHAT IS HAPPENING. WE TAKE IT AND WE GIVE IT TO SWIN.

WHICH IF WE WERE IN CHARGE OF THE MONEY, WE MAY FIND SOMEWHERE BETTER TO USE IT.

PROBABLY NOT BE GIVING IT TO THE WORKFORCE. YES, THAT'S WHAT I'M GETTING AT.

BUT WE WOULD HAVE TO DO THE SAME TYPES OF WORK WITH IT, SO IT'S STILL CAREER COUNSELING MONEY, SO IT WOULD JUST MEAN THE DIFFERENCE OF WHO THOSE EMPLOYEES WORK FOR. WE WOULDN'T BE ABLE TO JUST TAKE IT AND SAY WE'RE GOING TO HAVE X MANY KINDERGARTEN TEACHERS. I GUESS THAT'S THE NEXT LEVEL OF FRUSTRATION. IS THAT WHERE IT'S BEING USED, WE DON'T THINK WE NEED IT THERE, BUT WE THINK WE NEED IT. IF WE HAD CONTROL OF IT, THERE MAY BE SOMEWHERE WHERE WE THINK IT'S BETTER USE. OUR MOU HAS THE JOB COACHES FOR SWIN BEING EMPLOYED BY SWIN. MANY COUNTIES IN THE STATE, JOB COACHES ARE PAID FOR BY THE SCHOOL SYSTEM.

BUT IT'S SIX OF ONE, HALF A DOZEN OF THE OTHER.

AT THE TIME, WE DIDN'T THINK IT WAS PRUDENT FOR US TO BRING IN ANOTHER 8 TO 10 EMPLOYEES. KNOWING THAT BUMPY WATERS MIGHT BE AHEAD, SO WE CHOSE TO NOT BRING IN EXTRA FTES. DO WE HAVE BUYER'S REMORSE? MAYBE TO A POINT.

BUT THE BOTTOM LINE IS, IT DOESN'T MATTER HOW THEY'RE GETTING THEIR PAYCHECKS, THAT MONEY IS INTENDED TO SUPPORT JOB COACHES. NOT PHYSICS TEACHERS, NOT SPECIAL ED TEACHERS, JOB COACHES. AND I THINK THAT'S REALLY WHAT YOU'RE GETTING AT.

SO I DON'T KNOW IF YOU WANT TO VOTE ON THE OPERATING BUDGET NOW.

THERE ARE THREE DIFFERENT VOTES. WELL, I THINK WE NEED TO DO PUBLIC PARTICIPATION FIRST BEFORE WE VOTE. SO YOU WANT ME TO GO THROUGH EVERYTHING, ALL THE REST OF THE BUDGET FIRST? YEAH, LET'S GO AHEAD AND DO THE REST OF IT, AND THEN WE'LL DO PUBLIC PARTICIPATION. SO OUR CAPITAL BUDGET REQUEST HAS NOT CHANGED SINCE WE MET PREVIOUSLY. SO HERE YOU CAN SEE, WE REDUCED OUR REQUEST FOR LOCAL PLANNING FOR THOMPSON ESTATES. SO THE AMOUNT FOR NORTHEAST HIGH HAS NOT CHANGED WITH THE STATE COUNTY FRONT FUNDING FOR THE STATE.

LOCAL PLANNING FOR THOMPSON ESTATES WE REDUCED FROM $1 MILLION TO $400,000. AND YOU CAN SEE THE SMALL CAPITAL PROJECT REQUEST HERE FROM THE COUNTY. SO, THE TOTAL CAPITAL BUDGET REQUEST IS $42.1 MILLION. WITH 23.2 COMING FROM THE COUNTY, 11.9 IS WHAT THE COUNTY IS PROVIDING IN FRONT FUNDING FOR THE STATE, AND 6 MILLION IS WHAT THE STATE IS COMMITTED TO FOR FY27. AND THIS LIST OF PROJECTS HAS REMAINED THE SAME FOR THE SMALL CAPITAL PROJECTS.

I MEANT TO SEND YOU AN EMAIL ABOUT THIS, SORRY. OKAY.

OPERATING BUDGET, I NOTICED THAT THERE WAS MONEY IN IT FOR THOMPSON ESTATE FEASIBILITY STUDY. SHOULD THAT BE IN THIS? IT'S IN THE CAPITAL BUDGET. IT'S IN CAP, OKAY. I JUST SWITCHED TO CAPITAL BUDGET BECAUSE WE TALKED ABOUT GOING THROUGH ALL OF THESE, HAVING PUBLIC PARTICIPATION, AND THEN VOTING. I MEANT TO ASK LAST WEEK. I FORGOT.

THANKS. DID YOU POINT OUT IT WAS REDUCED? YES.

WELL, I GOT WATER. I'M SORRY.

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

[2. Public Comments on the Fiscal Year 2027 Budget Request ]

IN GENERAL, THREE MINUTES WILL BE ALLOTTED TO INDIVIDUALS. THE BOARD PRESIDENT MAY INTERRUPT OR TERMINATE AN INDIVIDUAL STATEMENT WHEN IT IS TOO LENGTHY OR VIOLATES THE GUIDELINES. THE BOARD ENCOURAGES SPEAKERS TO SUBMIT A WRITTEN COPY OF THEIR REMARKS. COMMENTS MAY BE PLACED IN THE BOX. AND THIS EVENING, THE BOX IS ON THE TABLE NEXT TO MR.

[01:00:01]

COMMENTS THIS EVENING ARE RESTRICTED TO JUST THE FY27 BUDGET. WE HAVE TWO PEOPLE SIGNED UP THIS EVENING. MR. BRIM, WHO IS ALREADY AT THE PODIUM, FOLLOWED BY MS. RINKO. I'M SEAN BRIM OF NORTHEAST. CECIL COUNTY IS AT A CROSSROADS.

SCHOOL BUILDINGS DECADES OLD ARE IN NEED OF REPLACING. I WOULD LIKE TO EMPHASIZE THIS POINT WITH REGARDS TO NORTHEAST'S HIGH MIDDLE SCHOOL PROJECT. BY THE TIME THE NEW HIGH SCHOOL MIDDLE SCHOOL IS OPEN, IT WILL HAVE BEEN 95 YEARS SINCE THE ORIGINAL HIGH SCHOOL, WHICH IS NOW THE MIDDLE SCHOOL.

WAS PUT UP IN THE DEPTHS OF THE GREAT DEPRESSION, 95 YEARS. WHAT IS NOW? THE MIDDLE SCHOOL IN NORTHEAST WAS BUILT BY MY GREAT-GRANDPARENTS' GENERATION. THE COUNTY CANNOT AFFORD TO LET BUILDINGS GO FOR SO LONG IN CONTINUOUS USE. I, FOR ONE, DO NOT TAKE AS AN ACCEPTABLE ANSWER THAT THE STATE WILL HOLD UP FUNDING FOR REPLACING THOMPSON ESTATES. WHICH I THINK IS NEXT ON THE RATHER LONG LIST. I'VE HEARD THE WE CANNOT AFFORD THAT ARGUMENT MY ENTIRE LIFE AS A FOURTH-GENERATION CECIL COUNTY RESIDENT. I HAVE NO SYMPATHY FOR SUCH FEELINGS.

TO DO SO PASSES THE BUCK TO OUR CHILDREN'S AND OUR GRANDCHILDREN'S GENERATION.

INDEED, FUNDS FOR SUCH REPLACEMENT WERE AVAILABLE AS RECENTLY AS THE LAST COUNTY ADMINISTRATION. DURING THE HORNBERGER YEARS, THE COUNTY DECIDED TO CASH OUT AT LEAST ABOUT $30 MILLION.

$30 MILLION BORROWED FROM OUR GRANDCHILDREN THAT WILL NOT GO TO SERVE TOMORROW'S NEEDS. I WILL GIVE THAT AS AN ANSWER WHENEVER I HEAR THE, WE CANNOT AFFORD IT IN THE FUTURE. MY NEXT ITEM, I'M NOT SURE, IS EXACTLY ON TOPIC WITH THE BUDGET, BUT IT'S ABOUT OPEN MEETINGS AND OUR IT TECHNOLOGY. NEXT, FILE THIS UNDER YOU HAD ME AT THE OPEN MEETINGS ACT.

BEFORE THE STATE ASSEMBLY IS H.B. 154 AND SB 99. THIS BILL WOULD REQUIRE BOARDS OF EDUCATION TO RETAIN THE UNEDITED VIDEO RECORDINGS OF OPEN MEETINGS. OUR PUBLIC COMMENT SHOULD ONLY BE ABOUT THE BUDGET, SO IF YOU COULD, BRING THAT TO US AT THE NEXT. THAT'S OKAY. OR SEND US AN EMAIL. THANK YOU SO MUCH. AND OUR FINAL SPEAKER, MS. RINKO. GOOD EVENING, PRESIDENT HEATH, DR. LAWSON, MEMBERS OF THE BOARD, LEADERSHIP TEAM, AND GUESTS.

I'M REQUESTING THAT AS YOU MAKE THESE TOUGH DECISIONS NECESSARY FOR THE FY27 BUDGET AND ANY BUDGET AMENDMENTS IN THE FUTURE THAT MIGHT BE NECESSARY, THAT YOU FOCUS ON THE AREAS THAT MAKE THE BIGGEST IMPACT ON STUDENT GROWTH AND LEARNING.

WE'VE HEARD FOR THE PAST FEW MONTHS, AND NOW, ESPECIALLY THIS EVENING, THE SERIOUSNESS.

OF BEING UNABLE TO MAINTAIN THE CURRENT LEVEL OF STAFFING AND RESOURCES IN THE UPCOMING YEAR THAT WE CURRENTLY HAVE. EVERY POSITION REMOVED CAUSES A SIGNIFICANT WORKLOAD IMPACT ON THE STAFF THAT REMAIN TO TEACH OUR CHILDREN, MAINTAIN THE BUILDINGS, AND MANAGE OUR SCHOOLS AND SYSTEMS. AS WE CONTINUE TO DO MORE WITH LESS. AND I'LL JUST REMIND YOU, AND I KNOW YOU ALREADY KNOW, THAT WE ARE STILL NOT TO THE FULL STAFFING POSITIONS WE WERE AT IN 2008 WITH THE GREAT RECESSION, SO WE'VE NEVER CAUGHT UP. IMPROVEMENTS IN ELEMENTARY CLASS SIZES WERE MADE THIS YEAR AND GREATLY APPRECIATED, BUT WE STILL HAVE CLASSROOMS THAT ARE VERY, VERY LARGE, AND THE PROPOSED CUTS FOR NEXT YEAR WILL RESULT IN EVEN MORE OVERCLOUDED CLASSROOMS. STUDENT AND STAFF SAFETY AND STUDENT BEHAVIORAL NEEDS CONTINUE TO BE A CONCERN, ESPECIALLY IN OUR YOUNGER GRADES. MANY STUDENTS NEED MORE SUPPORT TO REGULATE THEIR BEHAVIOR, REACH ACADEMIC GOALS. AND LEARN STRUCTURE AND ROUTINES THAT WILL HELP THEM BE SUCCESSFUL IN SCHOOL AND BEYOND. SO, WHILE WE DO HAVE LESS STUDENTS IN THE COUNTY OVERALL, WHICH IS THE TREND IN MARYLAND, OUR STUDENTS HAVE MORE GREATER NEEDS THAN EVER BEFORE. WE ALSO NEED THE APPROPRIATE RESOURCES AND MATERIALS AND CURRICULUM TO PROVIDE THE NECESSARY INSTRUCTION AND THE NEEDED INTERVENTIONS THAT WILL HELP OUR STUDENTS REACH THEIR ACADEMIC AND BEHAVIORAL GOALS.

CCPS ALSO HAS A LONG, AND I SAY PROUD, HISTORY OF FUNDING OUR NEGOTIATED AGREEMENTS, WHICH STRIVE TO PROVIDE COMPETITIVE SALARIES AND BENEFITS, AND IT'S CRITICAL IN RECRUITING AND RETRAINING OUR DEDICATED WORKFORCE, AGAIN, ESPECIALLY IN CONDITIONS WHERE WE'RE DOING MORE WITH LESS. SO CECIL COUNTY HAS TO REMAIN COMPETITIVE WITH SURROUNDING COUNTIES AND

[01:05:01]

WE'VE GOT GREAT GROW YOUR OWN, BUT I THINK WE'RE ABOUT 50-50 AT THIS POINT, SO WE CAN'T LOSE ANY OF OUR FOLKS TO OTHER PLACES.

SO AS A PUBLIC SCHOOL, IT IS OUR JOB TO TAKE CARE OF AND EDUCATE ALL OF OUR COUNTY'S CHILDREN. AND IN SUCH A TIGHT FISCAL OUTLOOK, IT'S CRITICAL THAT YOU REALLY PARSE THROUGH THE BUDGET AND IDENTIFY AND FIND ALL THE NEED-TO-HAVES, AS MR. FERDINANDO SAID, AND THE NICE-TO-HAVES ARE GOING TO HAVE TO JUST BE SET ASIDE UNTIL ANOTHER TIME, UNFORTUNATELY. SO I ASK YOU TO TAKE CARE OF THE STAFF AND PROVIDE THE TOOLS AND RESOURCES NECESSARY. SO THAT WE CAN ALL TAKE CARE OF OUR STUDENTS AND GIVE THEM THE EDUCATION THAT THEY NEED AND DESERVE. THANK YOU. THANK YOU, MS. SERENCO.

OKAY, NEXT ON THE AGENDA IS A

[3.01 Consideration of Adoption of Fiscal Year 2027 Budget Request - Operating Budget ]

LET ME JUST... TRY TO SUMMARIZE WHAT WE'VE ALL, WHAT I'VE HEARD THIS EVENING.

SO IF I'M CORRECT, GOING TO WHAT, MR. FERNANDO SAID, I KNOW IT MAY NOT BE PERFECT, BUT A $271 MILLION UNRESTRICTED BUDGET REQUEST, BUT TO SUSTAIN CURRENT OPERATIONS, IT'D BE CLOSER TO ABOUT $277 MILLION, GIVE OR TAKE, RIGHT? OF COURSE, THAT WOULD COME FROM THE COUNTY, WHICH WOULD REQUIRE A COUNTY ALLOCATION OF 16 MILLION OVER LAST YEAR, WHICH WOULD BE HUGE. IN FACT, 10 MILLION OVER LAST YEAR IS HUGE. AND I REALIZE, I MEAN, I UNDERSTAND WHY LOCAL GOVERNMENTS ARE HESITANT TO HAVE A GREAT INCREASE TO THEIR SCHOOLS OPERATING BUDGET BECAUSE THAT'S NOT A ONE-TIME EXPENSE. IT GETS ADDED TO SUBSEQUENT MOES.

BUT CURRENTLY, OUR COUNTY HAS BEEN HELPING A LOT WITH OTHER PROJECTS, WHICH DOESN'T IMPACT THE MOE CALCULATION. THE REAL ISSUE IS WITH THE IMPLEMENTATION OF THE BLUEPRINT. AND I'VE HEARD SOME COMMENTS ABOUT, WELL, PASAM OR MABE IS LOBBYING LEGISLATION TO GET RELIEF FROM SOME OF THAT, OR AT LEAST CHANGES TO THAT, BUT THAT DOESN'T HELP. THE SECOND GRADE TEACHER WITH 32 STUDENTS RIGHT NOW, IT DOESN'T HELP A MATH STUDENT LEARNING ALGEBRA IN A CLASS OF 35 RIGHT NOW. SO IF THIS IS AS GOOD AS WE CAN EXPECT BUDGET REQUEST, I'M DEFINITELY WITH MR. FERNANDO ON CUT THE NICE-TO-HAVES, SO WE HAVE TO DO FURTHER CUTS. SO FIRST, BEFORE WE DO A VOTE. I JUST WANT TO TAKE A MOMENT TO THANK OUR LEADERSHIP TEAM AND ALL THAT YOU'VE DONE TO PUT THIS BUDGET TOGETHER. I KNOW THIS PROCESS IS NOT EASY, AND IT REQUIRES LONG HOURS, DIFFICULT CONVERSATIONS, AND THOUGHTFUL DECISION-MAKING.

AND I KNOW YOU HAVE EXAMINED THIS LINE BY LINE AND YOU'VE GIVEN THAT TO US LINE BY LINE, SO I REALLY APPRECIATE THAT.

BUT I KNOW THAT THESE ARE TOUGH CHOICES. AND I KNOW THAT YOU GUYS HAVE ALWAYS THOUGHT ABOUT, AS YOU'RE MAKING THESE DECISIONS, HOW THIS AFFECTS OUR STUDENTS, AND I APPRECIATE THAT WITH ALL OF YOU. SO THANK YOU FOR YOUR DEDICATION TO OUR SCHOOL SYSTEM AND TO OUR COMMUNITY, AND TO OUR STUDENTS AND TO OUR STAFF. SO THANK YOU ALL VERY MUCH FOR WHAT YOU'VE PUT FORTH FOR US TONIGHT. A COUPLE OF THINGS THAT I JUST WANT TO SAY ABOUT THE BUDGET BEFORE WE MOVE ON IS THAT I BELIEVE THIS BUDGET DOES REFLECT BOTH RESPONSIBILITY AND CONTINUED COMMITMENT TO OUR STUDENTS. AND I WANT TO BE CLEAR, THOUGH, THAT THIS IS NOT A BUDGET THAT'S BUILT ON HAVING EVERYTHING THAT WE WOULD LIKE OR NEED. WE DO NOT HAVE THE LEVEL OF FUNDING THAT WE BELIEVE OUR STUDENTS TRULY DESERVE. AND I CERTAINLY DO NOT LIKE HAVING TO MAKE SOME OF THE HARD DECISIONS THAT ARE BEING MADE. AND I KNOW YOU DON'T EITHER. THOSE ARE DIFFICULT DECISIONS AND THEY WEIGH HEAVILY BECAUSE I KNOW THAT THEY AFFECT PEOPLE AND THE PROGRAMS THAT MATTER. I DO BELIEVE THAT THIS PLAN REPRESENTS A CAREFUL, THOUGHTFUL APPROACH TO THE RESOURCES THAT WE HAVE.

AND I AM HOPEFUL THAT THE COUNTY WILL CONTINUE TO SUPPORT US AND THIS BUDGET.

THEIR PARTNERSHIP IS CRITICAL TO ENSURING WE CAN MAINTAIN THE QUALITY OF EDUCATION THAT OUR STUDENTS DESERVE. SO I JUST WANTED TO PUT THAT OUT THERE THAT I DO APPRECIATE WHAT YOU GUYS HAVE DONE, WHAT OUR COUNTY HAS DONE, AND I HOPE FOR CONTINUED SUPPORT FROM OUR COUNTY. AND OTHER THAN THAT, I THINK WE SHOULD VOTE.

ARE WE READY? OKAY. DR.

[01:10:05]

CAN I MAKE A MOTION? I'M GOING TO MAKE A MOTION. OKAY. CAN YOU MAKE A MOTION? I'LL MAKE A MOTION. OKAY. I MOVE THAT.

THE BOARD OF EDUCATION OF CECIL COUNTY APPROVE THE OPERATING BUDGET FOR FISCAL YEAR 2027 FOR A TOTAL OF $286,894,677 WITH A COUNTY APPROPRIATION OF $115,386,116. DO WE HAVE A SECOND? SECOND. ANY DISCUSSION? ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES. NOW WE'RE GOING

[3.02 Consideration of Adoption of Fiscal Year 2027 Budget Request - Capital Budget ]

IN A TOTAL AMOUNT OF $41,123,365, WHICH INCLUDES A COUNTY APPROPRIATION OF $23,201,365 AND A COUNTY FRONT FUNDING OF STATE FUNDS OF $11,922,000. IS THAT A MOTION OR A RECOMMENDATION? DID YOU MOVE IT? I MOVE. I READ IT AS IT WAS THERE. SORRY, I MOVE.

SECOND. ANY DISCUSSION? ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES. AND NOW ON TO

[3.03 Consideration of Adoption of Fiscal Year 2027 Budget Request - Debt Service Budget]

IN TOTAL AMOUNT OF $8,480,216, WHICH INCLUDES $5,601,482 IN PRINCIPAL. AND $2,878,734 IN INTEREST. THAT WAS A MOTION. SECOND. ANY DISCUSSION? ALL IN FAVOR? AYE. ANY OPPOSED? MOTION CARRIES. NOW, CAN WE GO OVER THE LAST SLIDE OF JUST WHAT'S GOING TO HAPPEN BEFORE, YOU KNOW, FOR THE NEXT FOUR TIMELINES, IF THAT'S OKAY? AND THEN... SO WE WILL PROVIDE A COMPLETE BUDGET BOOK TO THE COUNTY EXECUTIVE AND COUNTY COUNCIL BY FRIDAY THAT HAS THIS BUDGET LINE BY LINE WITH ALL THE INFORMATION. WE WILL COME BACK TOGETHER AS CCPS, AS THE BOARD TO APPROVE OUR FINAL BUDGET IN JUNE. BEFORE THAT TIME, THE COUNTY EXECUTIVE SUBMITS HIS PROPOSED BUDGET TO COUNCIL BY APRIL 1ST. BEFORE APRIL 1ST, WE WILL PRESENT TO COUNTY COUNCIL OUR OPERATING BUDGET ON APRIL 14TH. ON MAY 19TH, WE WILL PRESENT OUR CAPITAL BUDGET. THEY'VE CHANGED THE SCHEDULE OF HOW THEY'RE DOING THEIR BUDGET PRESENTATIONS THIS YEAR, AND THEY'RE DOING ONE DAY.

THAT'S ALL CAPITAL BUDGET TOGETHER. TO KEEP IT SEPARATE FOR THEM. SO WE WILL GO ON TWO DIFFERENT OCCASIONS TO PRESENT. ON MAY 21ST, THE COUNTY COUNCIL HAS THEIR PUBLIC BUDGET HEARING, AND ON JUNE 2ND, THEY ADOPT THEIR ANNUAL BUDGET.

AND ONCE THEIR BUDGET IS ADOPTED, THEN WE CAN DEFINITELY END THE GOVERNOR'S BUDGET. WE CAN MOVE FORWARD WITH FINALIZING OURS, A LOT OF WHICH WILL HAPPEN, AS WE MENTIONED, TOWARD THE END OF MAY, BEGINNING OF JUNE, TO REALLY NAIL EVERYTHING DOWN.

AND BY THAT TIME, OBVIOUSLY, THE EARLY RETIREMENT INCENTIVE, I THINK WE HAVE A DATE OF THAT CLOSING IS APRIL 24TH, AND THEN OBVIOUSLY THAT'S GOING TO BE A BIG PLAYER HERE, AND THEN WE'LL HAVE THE MONTH OF MAY, WHERE YOU HAVE YOUR TYPICAL RESIGNATIONS, THAT HAPPENS, YOU KNOW, FOR LIFE CIRCUMSTANCES. AND WE WILL BRING YOU A RECONCILED BUDGET IN JUNE. THANK YOU. AND I THINK THAT'S EVERYTHING.

MEETING ADJOURNED. THANK YOU, GUYS.

* This transcript was compiled from uncorrected Closed Captioning.