Updates on the Fight for Quality Public Education in Brevard County, FL
0:00 Thank you.
3:02:28 upon ratification so that they can have their money even before
3:02:32 they
3:02:32 head back to school I respectfully urge the school board to
3:02:49 accept my
3:02:49 recommendation that provides our teachers a more competitive
3:02:53 raise the
3:02:54 highest in the last three years it recognizes all teacher groups
3:02:58 including
3:02:59 first-year teachers and our ESE teachers provides a more
3:03:05 competitive
3:03:05 compensation enhancement although my latest recommendation does
3:03:11 not come
3:03:11 without some risk and sacrifice sacrifice I believe it is the
3:03:15 right thing
3:03:16 to do we can commit to these additional financial obligations
3:03:20 for our teachers
3:03:21 although it utilizes some reserves we will make the necessary
3:03:25 adjustments to
3:03:26 sustain this commitment for our employees I thank the board
3:03:31 again for their time and
3:03:32 I’m happy to answer any questions I would like to provide you
3:03:44 with an
3:03:45 opportunity to ask any questions you may have to mr. hellsby or
3:03:49 dr. Mullins remember
3:03:50 you have the same opportunity to ask questions of the BFT and
3:03:53 its
3:03:54 representatives and you will have an opportunity to ask final
3:03:57 questions of
3:03:57 either side once both presentations have been made do any board
3:04:03 members have any
3:04:03 any board members have any questions
3:04:10 okay I do miss Campbell is yours going back to the slide with
3:04:19 the annual raises the
3:04:20 historical raises that from 2000 I’m sorry I don’t have in front
3:04:24 of me it says annual raise all employee groups and at the top
3:04:27 and it starts with the 2008 through
3:04:31 2011 were the Great Recession period I just want to make sure
3:04:39 for clarification fiscal year 15-16 where it was a 5.1% increase
3:04:47 can you explain that that was the year after I know we passed
3:04:52 the half cent sales tax and there were some adjustments that
3:04:53 were made can you do you have the history as far as why that
3:04:53 year was so much larger than that year was the year after I know
3:04:53 we passed the half cent sales tax and there were some
3:04:53 adjustments that were made
3:04:53 and can you do you have the history as far as why that year was
3:04:59 so much larger than any of the other years around I believe it
3:05:04 was in part as a result of some significant increase in state
3:05:09 funding as well as some significant efforts to reduce district
3:05:12 budgets Ms. Erker is that correct yes sir that is correct okay
3:05:17 thank you
3:05:17 Ms. Campbell is that your last question for now maybe just a
3:05:25 second do you want me to move on to Mr. Susan and circle back to
3:05:29 you
3:05:29 to you. I’m good for now. Thank you. Mr. Susan, the floor is
3:05:46 yours. Yes. So what I see is, is that the reoccurring offer from
3:05:53 the, the district is 6 million, 651,943. Is that
3:05:59 what I see on the… What slide are you on, sir? Well, I mean, I
3:06:03 can pull it up, but… What was your question again? It’s okay.
3:06:11 Operating funding, calculation of available reoccurring funds,
3:06:15 available reoccurring funding, and it goes down to your offer at
3:06:18 $1,100. My question, I guess, would be better informed, how much
3:06:23 is the total reoccurring cost of your most recent offer at $1,100?
3:06:29 From your slide
3:06:29 slides, it says 6,651,943, but I’d like to just ask what it is.
3:06:34 And Penny might be able to handle it. Mr. Susan, can… The
3:06:36 total cost is $9.5 million. It’s right here. Right. But your
3:06:42 actual reoccurring cost out of there makes up how much of that 9.5?
3:06:46 $6,269,760. All right. And then, Ms. Zirker, you may be able to
3:06:55 help out. If we were to move towards the, the union’s offer…
3:06:59 Mr. Susan, I hate to interrupt, but we are having a hard time
3:07:02 following you, and I want to make sure we have… Can you…
3:07:05 Sure. It doesn’t… Is there a page number? It doesn’t… I
3:07:07 apologize, but it doesn’t… We’re just… I’m just trying to
3:07:09 locate what the reoccurring
3:07:10 balance is that we are drawing from for the total amount. That’s
3:07:14 all. And Penny just said it’s $6,269,760. Right here. Funding
3:07:20 for proposed resolution slide.
3:07:21 It is slide 10. Some of the numbers on there are off. It’s okay.
3:07:30 I numbered them all, but if you’re… Okay. Okay? Yeah, well, I
3:07:35 think we’ve got it. We just want to follow along so we know what
3:07:38 you’re… Okay. And the union’s proposal per documentation that
3:07:40 I received, thank you, Ms. Envall, for putting all of this
3:07:43 together, is that a $2,300 raise is close to $12,921,703.
3:07:48 Now, Penny, have you looked at that or…? And I will tell you,
3:07:57 a lot of the laughs and stuff in the background, it doesn’t help
3:08:01 the position. So, I appreciate it if we could be like we were
3:08:04 when we were teachers, when I was a teacher, and respect the
3:08:07 individuals that are up here that are making the decision. I
3:08:09 will tell you that. Go ahead. All right. Go ahead, Penny.
3:08:13 Okay.
3:08:14 Yes, I’ve seen and calculated their offer.
3:08:18 So, that is correct. About $12,921,000? That was inside.
3:08:22 For the total offer, that is correct. So, we’re at a difference
3:08:25 of $6,651,943, roughly, if I do my numbers.
3:08:29 No, sir. Our cost is for the $1,100,825. The recurring portion
3:08:35 is $9.5 million. We have $6.3 in recurring dollars currently
3:08:41 available. The difference of $3.2 will be used this year for $18-19
3:08:46 funded from fund balance, followed up with committed cuts to
3:08:50 funded on a recurring basis.
3:08:51 So, what you’re saying, Penny, is that, and if I hear you
3:08:55 correctly, is we have $6,269,760 that is our reoccurring funds
3:09:00 available. You’ve added $3 million, roughly, of the extra
3:09:06 dollars from non-reoccurring to come to the total of, did you
3:09:09 say, what was that?
3:09:09 9.5 million. Okay, 9.5 million.
3:09:13 Mr. Susan, keep in mind that this reflects all employee groups.
3:09:18 This is our total recurring compensation for all employee groups.
3:09:22 That is correct. The 12.9 for BFT is only for them.
3:09:26 That’s what I was getting at. So, if we’re looking at a true
3:09:28 difference, so you guys, when you’re presenting this, are saying
3:09:32 that 9.5 would be the total amount. What is it exactly?
3:09:37 So, what is the total amount for the teachers’ union employee
3:09:42 group that we are offering at the table today? Does that make
3:09:49 sense?
3:09:50 The BFT portion of the recurring cost is $5.8 million for the 2.3%
3:10:00 raise, followed by another $955,000 for the ESC supplement.
3:10:06 So, it’s $5.8 million for the 2.3% raise at $1,100,000, right?
3:10:14 Correct.
3:10:15 Okay. Now, if we were only dealing with the BFT’s bargaining
3:10:21 group, at a $2,300 raise would be $12,921,703, according to
3:10:29 their documentation. Is that about correct?
3:10:31 That includes the ESC raise?
3:10:32 When I looked at it on page…
3:10:32 You can ask them when we get there.
3:10:32 What’s that?
3:10:33 I can ask them when we get there.
3:10:34 You have it.
3:10:35 I mean, they presented it inside of our documentation.
3:10:36 All right.
3:10:37 What I’m trying to establish is the difference between the
3:10:38 district’s offer and the union’s
3:10:38 offer and the cost…
3:10:39 Approximately $6.3 million.
3:10:40 6.3 million.
3:10:42 Right in there.
3:10:43 After our increase last week, at the time of the impasse hearing,
3:10:46 it was approximately
3:10:47 $8.5 million.
3:10:48 Right.
3:10:49 That is correct.
3:10:50 So we’re looking at $6.3 million of reoccurring difference
3:10:53 between the two offers.
3:10:54 Correct.
3:10:55 Okay.
3:10:56 I’ll follow back up and give some people some time.
3:10:56 I have a question, Dr. Mullins and Ms. Zucker.
3:10:56 The $3.2 million, that wasn’t part of the original proposal,
3:10:57 right?
3:10:57 Right.
3:10:58 That’s right.
3:11:00 So we’re looking at $6.3 million of reoccurring difference
3:11:01 between the two offers.
3:11:01 Correct.
3:11:02 Okay.
3:11:03 I’ll follow back up and give some people some time.
3:11:04 I have a question, Dr. Mullins and Ms. Zucker.
3:11:05 The $3.2 million, that wasn’t part of the original proposal,
3:11:11 right?
3:11:12 That is something recent.
3:11:13 You’ve brought in with the new proposal.
3:11:14 Correct.
3:11:15 And you’re pulling that from reserves.
3:11:16 Correct.
3:11:17 Some of it was accumulated by the reduction in the interest in
3:11:18 the interest of $6.3 million
3:11:18 of reoccurring difference between the two offers.
3:11:19 Correct.
3:11:20 Okay.
3:11:21 I’ll follow back up and give some people some time.
3:11:22 I have a question, Dr. Mullins and Ms. Zucker.
3:11:23 The $3.2 million, that wasn’t part of the original proposal,
3:11:26 right?
3:11:26 That is something recent.
3:11:27 You’ve brought in with the new proposal.
3:11:28 Correct.
3:11:29 And you’re pulling that from reserves.
3:11:31 Correct.
3:11:32 Some of it was accumulated by the reduction in the bonus, but it
3:11:36 did require additional
3:11:37 fund balance reserves to meet the difference.
3:11:39 Say that again.
3:11:40 Some of the nonrecurring dollars was realized from the reduction
3:11:47 in the bonus.
3:11:48 The part of that 3.2?
3:11:50 Correct.
3:11:51 Okay.
3:11:52 But there were additional fund balance dollars required to make
3:11:55 up the difference.
3:11:56 But the bonus was a one-time?
3:11:58 Correct.
3:11:59 So technically it’s new that you want to pull $3.2 million out
3:12:05 of reserves, out of savings.
3:12:07 For 2018-19.
3:12:08 And then I believe you said in your presentation that you’re
3:12:13 going to look for cuts in the future,
3:12:14 but we don’t know what those cuts are.
3:12:16 We are already working on those as a senior cabinet and finance
3:12:20 team.
3:12:20 Okay.
3:12:21 One other area of – I’ll just – the 3.9 million in the
3:12:40 committed fund balance.
3:12:41 Yes.
3:12:42 So are you pulling – here’s my concern.
3:12:52 I’m not quite sure how to word it.
3:12:54 The 3.9 million in the committed fund balance, if you’re pulling
3:12:58 from that for this raise,
3:12:59 and that funds currently pay for our 16 reading coaches and our
3:13:03 seven social workers.
3:13:04 That gives me great concern.
3:13:06 So is that – is that where it’s coming from?
3:13:08 Because that –
3:13:09 No.
3:13:10 That fund is not being utilized at all.
3:13:11 It will continue to fund those positions for 19-20.
3:13:14 But – and then – you don’t know where the 3.2 is coming from.
3:13:19 But that is part –
3:13:20 We are committed to further additional budget reductions.
3:13:26 We’ve also looked at our budget projections for next year, which
3:13:29 we just received,
3:13:30 and confirmed that we have some budget savings as a result of
3:13:34 increases in categoricals
3:13:35 that were being funded by the district, so we can recapture
3:13:38 those dollars.
3:13:39 And we’ve already identified some budget reductions.
3:13:42 In the –
3:13:43 In the millions, though?
3:13:45 I – you’re speaking in general terms.
3:13:47 I’m concerned where that 3.2 is coming.
3:13:49 I don’t want to vote for something today, and then a year from
3:13:53 now, here we have to lose
3:13:54 our reading coaches or our social workers because we voted for
3:13:58 this today.
3:13:59 I want to have a tangible thing that’s going to be cut.
3:14:03 We’ve already begun the cuts.
3:14:05 I can’t outline them to you specifically.
3:14:07 We’ve identified vacant positions that we will eliminate in
3:14:11 addition to some budget reductions
3:14:13 across the district.
3:14:14 I’ll be utilizing my experience as chief operating officer to
3:14:18 revisit our operations and identify
3:14:21 some revenue savings due to efficiencies as well that have been
3:14:25 brought to our attention
3:14:26 very recently.
3:14:27 Thank you, Dr. Mullins.
3:14:28 Does any other board member have a question for Dr. Mullins
3:14:31 before we move on to BFT?
3:14:33 Is there any kind of – so the district says that our credit
3:14:41 rating drops, our loans will go
3:14:43 up basically, and it will cost us more district revenue, right?
3:14:48 Is there any – does that occur at the point of us renewing our
3:14:52 loans, or does that occur
3:14:53 at the point of us just falling below?
3:14:55 Is it a reoccurring amount?
3:14:56 Let me actually clarify that.
3:14:57 If we drop in our credit rating, it will not impact our current
3:15:05 interest rate.
3:15:07 It will prohibit us from getting a better interest rate at the
3:15:11 time of refinancing.
3:15:12 And when, Ms. Zerker, are those refinancing loans available to
3:15:16 be refinanced?
3:15:17 I think they’re on like a 20-year page, and we just renewed a
3:15:20 couple of them?
3:15:21 We have – they come in series.
3:15:24 The next series will be in 2023 that we can look at.
3:15:29 Those are 2013 bonds.
3:15:30 So, we’re concerned about the fund balance in 2023 currently
3:15:38 falling below – what was it?
3:15:39 8%?
3:15:40 Sorry.
3:15:41 We are concerned about it in 2023.
3:15:45 However, these credit ratings agencies rate us annually, and
3:15:51 falling prior to that will
3:15:53 impact the way we are viewed on the market at the time we go to
3:15:57 refinance.
3:15:58 If it appears that we are not stable or improving.
3:16:03 And that sweet spot is right around 8%.
3:16:05 Is that what I’m hearing you say?
3:16:07 Where is it that they’re concerned about us dropping below our
3:16:11 current rate of AA rating?
3:16:12 They are comfortable with where we’ve been holding our history.
3:16:16 However, as Moody’s had mentioned in their report, we are far
3:16:20 below where they see other
3:16:22 districts.
3:16:23 What they have attributed to it is our conservative management
3:16:29 and ability to cover needs when
3:16:32 they occur and willingness to do the cuts necessary.
3:16:35 So, you say our history – one of the questions I have is that
3:16:40 if you go back about four, five,
3:16:42 six years, and you look at our history, we’ve hovered between 37
3:16:46 million and where we are today.
3:16:49 I think 37 million was six years ago on our fund balance.
3:16:52 And we’ve pretty much stayed within that, going up 7 million,
3:16:55 going down 7 million, and in
3:16:57 between there.
3:16:58 Is that about –
3:16:59 That is correct.
3:17:00 But when we were at 37 million, our credit rating was not at a
3:17:04 AA-2.
3:17:04 Right.
3:17:05 So, the question is to get to 8% is kind of the sweet spot of
3:17:08 where we want to be so that
3:17:10 we don’t fall below that, so that our credit rating doesn’t fall
3:17:13 below and we can continue
3:17:15 paying the interest rates that we have.
3:17:17 And I’d like to point out that is the financial condition ratio
3:17:20 that’s important.
3:17:21 Yeah.
3:17:22 Gotcha.
3:17:23 And that comes up in 2023?
3:17:24 Yes.
3:17:25 Okay.
3:17:26 And then I had a quick question as to which of the actual carry-forwards,
3:17:30 medical insurance,
3:17:31 school operations, all of that stuff actually counts towards
3:17:36 that 8% or is it all of it?
3:17:38 The – let me get back to the –
3:17:41 I’m sorry.
3:17:42 It’s on page – I’ve numbered all the slides.
3:17:44 It’s my page 12 if you’re counting back.
3:17:46 No, I have it.
3:17:47 I just need to move to that spot.
3:17:49 I apologize.
3:17:50 Included in that are encumbrances, carry-forwards, medical
3:17:58 insurance, school operations, board
3:18:03 required contingency, the nonrecurring funding, FEFP reserve,
3:18:08 and the miscellaneous reserve.
3:18:10 Okay.
3:18:12 Not school operations?
3:18:13 No.
3:18:14 If I didn’t say school operations, then I missed that.
3:18:17 Yes, it is.
3:18:18 And from encumbrances down.
3:18:20 Okay.
3:18:21 Not committed fund balance, not state categoricals, not prepaid
3:18:24 expenses, inventory on hand.
3:18:26 Any of that?
3:18:27 Correct.
3:18:28 Those other ones?
3:18:29 Those are not included.
3:18:30 It is assigned, unassigned fund balances only.
3:18:31 Perfect.
3:18:32 Thank you, Ms. Zucker.
3:18:33 The other question I had is, in the $3.1 million for medical
3:18:37 insurance, did we add that to our
3:18:38 report to the state when we added the numbers every year for the
3:18:41 last couple of years?
3:18:43 I think this was brought on by Dr. Bingley, which the district
3:18:45 provided the information
3:18:47 that he put that so that we can catch in between the salaries.
3:18:51 That $3.1 million, is that addressed to the state when we were
3:18:54 filing our numbers?
3:18:55 It was inadvertently added on 1718’s 112-08 report due to a
3:19:01 misunderstanding of what that
3:19:03 reserve was for.
3:19:04 So, it was not in 1617.
3:19:08 It was in 1718, but it will be in our 18 –
3:19:10 It will not be in 1819.
3:19:12 Okay.
3:19:13 All right.
3:19:14 Hang on just a second.
3:19:15 If you have anybody else that had any questions, if not, then I
3:19:19 would –
3:19:20 If you want to keep looking, I have another question.
3:19:22 Yeah.
3:19:23 Just moving around here.
3:19:24 Ms. Cerker, you said, in order to go with what the union is
3:19:29 recommending, we need that
3:19:30 3.2 million, which Dr. Mullins has brought forward, plus a 6.3
3:19:36 million.
3:19:37 Is that correct?
3:19:38 Or does 6.3 include the 3.2 million in cuts you’ve already –
3:19:40 To go with Dr. Mullins, it is the 6.3 we already have, plus 3.2
3:19:46 from the nonrecurring.
3:19:48 We would need another – the difference between that and the
3:19:52 union’s difference, which was
3:19:54 another 6.3 million.
3:19:56 So, we need another 6.3 on top of the 3.2.
3:20:00 Ms. Descovich, no.
3:20:03 The recurring commitment forward is 3.2.
3:20:07 The 6.3 is already captured funds for 1819 and are recurring
3:20:11 going into the future.
3:20:13 So, what is the number – I thought Mr. Susan asked what the
3:20:16 number was, the difference.
3:20:17 That was the difference between our current recurring commitment
3:20:22 based on my proposal and the union’s
3:20:25 proposed compensation.
3:20:26 It would be an additional 6.2 – 6.3 million dollars.
3:20:32 That’s the number I want to look at.
3:20:34 Give me just a second, Mr. Susan.
3:20:36 So, that has to come out of fund balance somewhere, that
3:20:40 additional 6.2 if we go that way.
3:20:42 Correct.
3:20:43 So, can you point us and show us where that would come from?
3:20:48 Because obviously there’s things from the state we cannot touch
3:20:51 legally.
3:20:51 So, would that come out of committed –
3:20:54 It would essentially likely come from the board required contingency.
3:21:00 Which legally, which per our policy, can’t go below 3.5.
3:21:05 Correct.
3:21:06 It would require a board amendment to the policy.
3:21:09 Ms. Zerker – I’m asking Ms. Zerker just because I think she
3:21:14 might know.
3:21:15 Do you know what other districts – what their fund balance – I’ve
3:21:20 spoken to other school district board members, and they have
3:21:21 board policies that are 7%, 8%, 20%.
3:21:22 Ours is 3.5% – Do you happen to know maybe surrounding counties,
3:21:34 comparable counties, what their board policies are, or is that
3:21:38 just out of here?
3:21:39 I do not have that information.
3:21:41 If I may, Ms. Deskovich, I draw you back to the financial risk
3:21:45 ratio slide that reflects Brevard’s fund balance – or, excuse
3:21:50 me, financial risk ratio in comparison to other district – all
3:21:54 other districts in the state.
3:21:55 That was slide, I believe, 35.
3:22:08 That’s not necessarily their fund balance, is it, or do they use
3:22:10 that to come up with the financial condition, right?
3:22:13 The fund balance is used as the foundation of calculating the
3:22:17 financial risk ratio by the state.
3:22:20 It’s a consistent calculation for all districts, and you can see
3:22:24 Brevard is at the median, and we’ve consistently been there.
3:22:28 Other districts have considerably higher fiscal – financial
3:22:34 risk ratios than we do, upwards of 25-plus percent.
3:22:41 Okay, so if we pulled 6.2 or 3 million, whatever that number is,
3:22:47 the difference, out of the board contingency,
3:22:50 is we would have to adopt a new board policy or amendment, but
3:22:59 would we now fall below the state-required 3.0 and really put
3:23:04 ourselves in risk?
3:23:04 That’s what I need to understand.
3:23:06 Because the state uses all the funds that we’ve presented that
3:23:09 are committed and identified for other things,
3:23:12 it wouldn’t necessarily draw our financial risk ratio below the
3:23:17 3% to notify to the state.
3:23:19 However, it’s not just a $6.2 million obligation for ‘18-‘19.
3:23:26 The union’s proposal is to then use the salary attrition rate
3:23:29 over the next several years to make up that funding.
3:23:33 So our calculation is approximately $1.4 million, so next year,
3:23:38 there’d be a $1.4 million recovery against the $6.2 million
3:23:44 obligation.
3:23:45 So it’d be $6.2 million this year.
3:23:48 Next year, it’d be another fund balance commitment of
3:23:52 approximately $4.8 million.
3:23:54 The next year, it would decrease again by $1.4 million.
3:23:57 So over a period of time, approximately five to six years,
3:24:01 I’ve calculated the fund balance calculation of well over $20
3:24:07 million.
3:24:08 Thank you.
3:24:09 Thank you, Dr. Mullins.
3:24:11 Mr. Susan, do you have your question now?
3:24:13 I think there was a question that I think you had where you
3:24:16 asked what the percentage was,
3:24:17 and you said it was right around five percent.
3:24:19 Ms. Zerker, if we add all of the identified fund balances that
3:24:24 are identified by the state for our base,
3:24:29 and the Moody’s and everybody else’s credit rating, do you know
3:24:33 what percentage that is currently?
3:24:35 What our current – what our financial condition ratio is
3:24:39 currently?
3:24:40 If you take $58,322,324 and subtract the inventory on hand, prepaid
3:24:46 expenses, state categoricals,
3:24:48 and then came out with that total number, I wanted Mrs. Zerker
3:24:51 – or Mrs. Deskovich had said we were around five percent,
3:24:53 but I’m doing my calculations were 8.9 percent.
3:24:56 Ms. Zerker, it’s 8.26 percent is our financial ratio condition
3:25:00 for fiscal year 17-18.
3:25:03 Okay.
3:25:05 We’ve not received the state’s calculation of our financial risk
3:25:11 ratio for 18-19 yet.
3:25:12 It should be coming out shortly.
3:25:13 The other question I had – if I can keep going.
3:25:16 Ms. Zerker, keep going.
3:25:17 So I was looking at the conversation that the individual had
3:25:22 that presented the 30-page report on our financial conditions,
3:25:26 said that our state board contingency is reducing, right, but
3:25:32 our actual overall general fund balance is increasing.
3:25:36 Is that a – is that a safe thing to say?
3:25:40 Since we’ve considered – since we have been – we increased
3:25:44 from last year to this year from 47 to 40,
3:25:47 the year before we were 40, but as a trend, our general fund
3:25:51 balance has been increasing the last three years.
3:25:54 I believe Ms. Zerker will represent that.
3:26:09 There have been two additional additions to the fund balance in
3:26:13 the last couple years.
3:26:14 The – the grant-style funding of almost $4 million was added a
3:26:23 couple years ago, as well as the prepaid expenses
3:26:30 for insurance was a new accounting practice that was applied of
3:26:34 approximately $3.5 million,
3:26:36 which would reflect an increase in the fund balance, but not
3:26:40 necessarily a cumulative fund balance, if that makes sense.
3:26:44 Because the carry – the – the grant-style funding is
3:26:48 decreasing, and it will become zero, and the prepaid expenses.
3:26:52 Did I get that correct, Ms. Zerker?
3:26:53 Ms. Zerker?
3:26:54 That is correct for 17-18.
3:26:56 Our total fund balance did increase beginning in 16-17 as a
3:27:00 result of elimination of carry forwards going forward,
3:27:04 which allowed for the grant-style funding.
3:27:06 There was a slight increase coming into 17-18 due to the
3:27:12 committed – remaining with the committed,
3:27:15 and the prepaid insurances being treated according to generally
3:27:19 accepted accounting principles.
3:27:21 However, our financial condition ratio in 15-16 was 8.31.
3:27:28 It did increase in 16-17 to 9.36 because of those elimination of
3:27:33 carry forwards,
3:27:34 and has dropped back to 8.26 for 17-18.
3:27:38 Ms. Belfer, do you have questions?
3:27:43 I’ll come back to it.
3:27:44 Ms. Zerker.
3:27:45 Okay.
3:27:46 Dr. Mullen, we are talking 17-18 on all of these numbers, but we
3:27:57 are currently at the end – coming
3:28:00 to the end of our 18-19 budget year.
3:28:03 Mr. Correct.
3:28:04 Ms. Zerker.
3:28:05 So, what is our current fund balance and reserves?
3:28:09 Mr. Zerker?
3:28:10 Ms. Zerker.
3:28:12 I did not bring them with me today.
3:28:15 They – as our books are not closed yet, we are in the process
3:28:23 – the year does not
3:28:25 end until June 30.
3:28:26 There are a number of entries, including labor runs, that have
3:28:30 to be placed in to actually
3:28:31 be able to tell you what our fund balance will be at the end of
3:28:34 the year.
3:28:35 Ms. Zerker.
3:28:36 So, do you have – and I completely understand that.
3:28:40 We’re – there’s a lot of flux right now.
3:28:42 I believe for our meeting tomorrow, we have a budget amendment
3:28:46 for May 31st.
3:28:47 Ms. Zerker.
3:28:48 Correct.
3:28:49 If I have the date correct.
3:28:50 Do you know what the fund balance is for the May 31st?
3:28:54 Ms. Zerker.
3:28:55 I did not bring it with me today.
3:28:57 Ms. Zerker.
3:28:58 Okay.
3:28:59 So, do we – I guess the question I’m getting to is we’re
3:29:02 talking about $58 million in reserves.
3:29:03 Are there $58 million sitting in reserves at this point in our
3:29:07 budget year?
3:29:08 Ms. Zerker.
3:29:09 I expect it to be slightly lower than the $58 million at the end
3:29:13 of the year.
3:29:13 What you’re seeing in reserves right now is before we do any of
3:29:17 our expenditures for the
3:29:19 month of June, which are significant because it’s two months of
3:29:22 salary for teachers, including
3:29:24 salary increases.
3:29:25 Ms. Zerker.
3:29:26 So, when I look at the budget amendment in preparation for
3:29:32 tomorrow’s meeting, there are
3:29:34 several of those funds that we – for example, if I’m correct in
3:29:39 understanding, the $3.1 million
3:29:41 in medical reserve was already paid in September to Cigna on
3:29:45 behalf of our employees, correct?
3:29:48 Ms. Zerker.
3:29:49 It was added to the budget for premiums in September.
3:29:52 Ms. Zerker.
3:29:53 So, and then our – the $3.9 million that was in the committed,
3:29:58 the grant-style funding,
3:30:00 I believe, if I recall, that number is down to $1.9 million?
3:30:04 Ms. Zerker.
3:30:05 Correct.
3:30:06 Ms. Zerker.
3:30:07 It was also at the same time the $3.1 million went into the
3:30:09 budget in September’s budget
3:30:10 amendment.
3:30:11 The $1.9 million for $1.9 million reducing the committed for
3:30:15 this year to $1.9 million.
3:30:16 Ms. Zerker.
3:30:17 So that – and basically the reason that that was moved is
3:30:19 because we had to pay the salaries
3:30:20 for those individuals, the SROs, the social workers, and the
3:30:23 instructional coaches, right?
3:30:25 Ms. Zerker.
3:30:26 We haven’t done that until after the budget hearing in September
3:30:28 because the board has
3:30:29 to actually vote to allow us to do that.
3:30:32 Ms. Zerker.
3:30:33 Okay.
3:30:34 So looking at the – our prepaid expenses also are paid
3:30:38 throughout the year, right?
3:30:40 Or they’re transferred from our reserves into budget to pay for
3:30:44 our property and liability
3:30:45 insurances throughout the year?
3:30:46 Ms. Zerker.
3:30:47 The insurance is currently at zero.
3:30:49 We are in the process of renewing that.
3:30:52 And at the end of the year, nine months’ worth of that expense
3:30:55 we will have made for the
3:30:56 premium will be placed into the fund balance again.
3:31:00 For the next cycle of insurance?
3:31:03 Ms. Zerker.
3:31:04 For 19-20, yes.
3:31:05 Okay.
3:31:06 And our state categoricals, does the same thing happen with
3:31:09 those that we – the funds are allocated
3:31:11 for specific things and then we move them into budget to pay for
3:31:14 those things?
3:31:15 Ms. Zerker.
3:31:16 Correct.
3:31:17 At the end of the year, after everything has been accounted for,
3:31:19 we’ll take the balances that’s
3:31:20 not spent in those accounts and set them into fund balance to
3:31:24 carry forward into the new
3:31:25 year.
3:31:26 Ms. Okay.
3:31:27 And so will we then – on those state categoricals, so we will
3:31:32 – anything that’s not spent at the
3:31:34 end of this year on those state categoricals will go into fund
3:31:38 balance to support those expenses
3:31:40 for next year that we have to spend them in a particular area.
3:31:44 And then – am I correct in understanding, too, that we will get
3:31:47 additional allocation for
3:31:49 state categoricals that will go into fund balance for those
3:31:53 state categoricals until they’re transferred
3:31:55 to budget for those?
3:31:56 Ms. No.
3:31:57 That would be incorrect.
3:31:58 We eliminated that practice about four years ago.
3:32:00 Okay.
3:32:01 Ms. We will actually include them in the adopted budget where
3:32:04 they belong.
3:32:04 Okay.
3:32:05 Ms. Based on the planned expenditures for those state categoricals.
3:32:08 So do you anticipate then that our fund balance for next year is
3:32:12 going to be lower because
3:32:14 we’re no longer including our state categoricals?
3:32:16 Ms. At the beginning of the year, yes.
3:32:18 Okay.
3:32:19 So it will only – we’ll see those state categoricals at the end
3:32:23 as kind of a carry forward type thing.
3:32:24 Ms. Right.
3:32:25 As we move from the end of ‘18-‘19 into ‘19-‘20 in September’s
3:32:30 budget amendment,
3:32:30 we’ll take the carry forwards out of fund balance and place them
3:32:34 into the appropriations lines
3:32:36 so that the schools and appropriate departments can spend those
3:32:41 dollars on the needs of our students.
3:32:42 Ms. Okay.
3:32:44 So looking at – I’m on slide 13.
3:32:50 I think you guys are all with me.
3:32:53 But our FEFP reserve you indicated has gone down because we had,
3:32:58 I think, 400,000 net loss in that this year?
3:33:02 Ms. That is correct.
3:33:03 It was approximately 1.7 million at Calc 3, and we gained back
3:33:09 about 1.3 in Calc 4.
3:33:12 And is there an additional calculation coming on our FEFP?
3:33:16 Ms. Yes.
3:33:17 We will get Calc 5 at the beginning of August, and that will be
3:33:22 – any reductions there will
3:33:24 be taken against the FEFP reserve.
3:33:27 Ms. Okay.
3:33:28 Can I jump in really quick on that question?
3:33:32 Is that in August usually a reduction or an addition, or does it
3:33:36 just vary year to year?
3:33:38 Ms. History has had it at a reduction, but it has varied.
3:33:42 And on our encumbrances and carry forwards, you don’t know what
3:33:55 those dollar amounts are?
3:34:00 Ms. No, ma’am.
3:34:01 We actually have been actively working over the last couple of
3:34:04 months with our new purchasing
3:34:05 director to try and reduce those as much as possible.
3:34:08 And we will continue efforts to try and ensure that encumbrance
3:34:13 is outstanding at the end
3:34:14 of the year or as low as possible only for necessities.
3:34:16 Ms. Okay.
3:34:17 I think that’s all I have for right now.
3:34:18 Ms. Thank you, Ms. Belford.
3:34:19 Does anyone else have questions?
3:34:20 Just a point of clarification.
3:34:21 I pulled that general fund that you were talking about from the
3:34:25 budget amendment for tomorrow
3:34:34 morning’s piece.
3:34:35 Ms. The budget reserves, beginning fund balance in April of 2018
3:34:40 was $57,638,000.
3:34:42 April 2019 is $58,322,000, which is an increase of 1.9%, or $684,000.
3:34:51 So our fund balance, according to our documentation of May, is
3:34:56 showing an increase of 1.9% as of
3:34:58 last year.
3:34:59 Ms. You’re looking at a different place than I am because the
3:35:03 budget amendment shows our
3:35:05 fund balance as of May, which is at $27,677,000.
3:35:19 Ms. I’m pulling that up, Ms. Campbell.
3:35:22 Say that again.
3:35:23 Ms. Go to the 9400s.
3:35:27 Ms. This is all on our agenda for tomorrow night.
3:35:29 If you just want to access the internet, you can see it.
3:35:31 I’m on page 7 of 7.
3:35:34 Ms. Page 7 of this one.
3:35:36 Ms. And it shows the fund balance changes through the whole year.
3:35:40 Ms. Which one do you want?
3:35:42 Ms. The May budget amendment.
3:35:45 Ms. Got it.
3:35:46 Ms. Financial statements for April 2020.
3:35:47 Ms. No, the budget amendment.
3:35:48 Ms. No amendment.
3:35:49 Ms. Okay.
3:35:50 Ms. It’s the last item under financial services on the agenda.
3:35:55 Ms. I know.
3:35:56 If you look under the financial statements, which is reported in
3:35:58 the state, it’s actually an
3:36:01 increase of 684,000.
3:36:03 Ms. Where is the operating?
3:36:04 Ms. Okay.
3:36:05 I’m sorry.
3:36:06 Ms. It does say total amended budget 628, right?
3:36:11 Ms. That’s the – the whole budget.
3:36:15 Ms. Yes.
3:36:16 Ms. Oh, the final.
3:36:17 Okay.
3:36:18 Then the –
3:36:19 Ms. All right.
3:36:20 We’re at 7 of 7.
3:36:21 Ms. 7 of 7.
3:36:22 Ms. So you’re looking at just the unreserved fund balance or are
3:36:27 you looking at the total
3:36:27 fund balance at 4 –
3:36:28 Ms. The total fund balance.
3:36:30 Ms. I’ve got it.
3:36:31 Ms. I’ve got it printed.
3:36:32 Ms. Mm-hmm.
3:36:33 So total fund balance, I guess, is going up.
3:36:34 Ms. Where is –
3:36:35 Ms. It looks like it keeps decreasing, 1031 by 396, right?
3:36:35 Ms. The operating fund is to us, right?
3:36:37 The one we report to the state is the other one that’s inside
3:36:51 there too.
3:36:54 The one that’s reported to the state shows a $624,000 interest.
3:36:58 Ms. So are you saying what we’re reporting to the state is not
3:37:02 the same on what we’re voting
3:37:02 on?
3:37:03 Ms. No.
3:37:04 I have no idea why we have two of them.
3:37:06 Ms. Zirker, I apologize.
3:37:07 I should ask you.
3:37:08 We have inside of the financial statements that we’re reporting
3:37:12 to the state an increase
3:37:13 of $624,000 or an increase of 1.16 percent.
3:37:16 On your documentations that you’re sending to us as expenditures
3:37:20 by objects, it’s a little
3:37:21 different from what we’re saying.
3:37:23 Can you please explain?
3:37:24 Ms. The monthly financial statements are not sent to DOE.
3:37:28 DOE does not receive financial statements until the end of the
3:37:32 year.
3:37:32 That is utilizing and estimating what we think the fund balance
3:37:36 will be at the end of the
3:37:37 year after we put in the remainder of the reserves.
3:37:41 We want to show you what our estimate is.
3:37:44 And then the budget amendment shows you exactly what has been
3:37:47 happening throughout the year
3:37:49 with our fund balance.
3:37:51 It will increase from what you’re looking at to a final fund
3:37:55 balance at the end of the year
3:37:57 when we look at all of the carry forwards and encumbrances that
3:38:01 need to go into fund balance
3:38:02 to carry forward into the new year.
3:38:04 So your estimation at the end of the year, per the documentation
3:38:10 on here, is that it will
3:38:10 increase by roughly 1.19 percent.
3:38:14 But currently, the expenditures that you’re showing us are a
3:38:16 little bit different.
3:38:17 So there’s something that’s going to happen between now and then
3:38:19 that’s going to cause it
3:38:20 to increase by 1.19 percent according to you.
3:38:23 That will be closing the books and looking at what the carry
3:38:27 forwards and items are.
3:38:28 And we base that number on historical.
3:38:31 It is a rough estimate.
3:38:33 I can assure you the final number will be different than my
3:38:36 estimate.
3:38:37 But your own estimate shows an increase of 1.19 percent.
3:38:42 Or roughly $600,000.
3:38:44 Okay.
3:38:45 Thank you, Mr. Susan.
3:38:47 Just a note to the board.
3:38:48 We have to make sure we’re loud and clear into the microphones
3:38:51 for the colloid reporter.
3:38:52 I don’t think it was you, Mr. Susan.
3:38:54 I think it was myself.
3:38:55 But I just want to share with everyone.
3:38:57 Sorry.
3:38:58 I do that a lot.
3:38:59 I apologize.
3:39:00 Does anyone else have any more questions for Dr. Mullins?
3:39:02 Thank you, Dr. Mullins.
3:39:04 It is now time for BFT to present their issues and
3:39:11 recommendations.
3:39:14 Mr. Colucci and Ms. Sasso.
3:39:34 I am Anthony Colucci, President of the Brevard Federation of
3:39:45 Teachers.
3:39:47 And this is Angela Dawson, Bargaining Specialist for the Florida
3:39:51 Education Association.
3:39:53 On behalf of the Brevard Federation of Teachers Bargaining Unit,
3:39:58 we propose that the School Board
3:40:00 of Brevard County accept the Special Magistrate’s recommendation
3:40:03 to fund the union’s proposals
3:40:06 as follows.
3:40:07 Issue number one, salary increases shall be awarded according to
3:40:11 the contract status.
3:40:12 And 17-18 performance evaluation as follows.
3:40:16 Yes.
3:40:17 Performance pay, highly effective, $2,300.
3:40:21 Effective, $1,725.
3:40:24 Grandfathered scale, highly effective, $2,299.
3:40:29 Effective, $1,724.
3:40:33 For the second issue, we are asking bargaining unit members
3:40:37 certified in exceptional student education
3:40:40 and shall receive an $835 supplement in addition to the $165
3:40:46 supplement they currently receive
3:40:48 for being certified in a critical shortage area for a total
3:40:54 supplement of $1,000.
3:40:57 The cost of the salary portion, inclusive of benefits, is about
3:41:02 $12.1 million, which is about 1.9%
3:41:07 of district revenues.
3:41:09 And for the ESE supplement, inclusive of benefits, it is about $820,000,
3:41:17 which is 0.15% of the revenues.
3:41:21 For a second, I want everybody to take a step back as we talk
3:41:24 about all these big numbers
3:41:26 and put this into perspective.
3:41:28 The median teacher salary in Brevard County is $43,957.
3:41:35 So, if we were asking one of our teachers to fund this proposal,
3:41:40 it would cost $879.
3:41:44 This is a lot of work and effort for $879 on this.
3:41:53 The factors that the special magistrate considered were our
3:41:57 comparable districts in the local operating
3:42:00 area and comparable size districts within the state.
3:42:07 One of the factors that he considered was the interest and
3:42:10 welfare of the public.
3:42:12 And just to be clear, he recommended that you accept the union’s
3:42:16 proposals because they are
3:42:18 in the best interest and welfare of the public.
3:42:23 Secondly, he looked at the availability of funds.
3:42:28 Not where those funds were located, but if they were available.
3:42:34 And he said they are available.
3:42:36 That is a neutral party, not Dr. Mullen’s buddy from the Superintendents
3:42:41 Association doing an audit.
3:42:44 This was a neutral party.
3:42:47 Our comparable districts in the local operating area are Indian
3:42:52 River, Orange, Osceola, Seminole, St. Lucie, and Volusia.
3:42:57 A similar size is Pasco with some overlap with our local
3:43:02 operating districts.
3:43:04 The settlements for this year is Indian River is currently at
3:43:08 impasse.
3:43:09 Pasco teachers saw an average raise of about $1,017 per employee.
3:43:15 Seminole had a two-year agreement that began in 17-18 with a 3.37%
3:43:22 raise over the two years.
3:43:24 St. Lucie, their school board saw that they were falling behind
3:43:29 in pay.
3:43:30 So they went out, had the courage to ask the voters for
3:43:34 additional operating millage, a decision that this board did not
3:43:40 make.
3:43:40 In that referendum election, the teacher with 10 years of
3:43:46 experience is looking at a $7,800 raise.
3:43:51 Volusia, effective annual contract teachers, $1,290, highly
3:43:59 effective, $1,578.
3:44:01 Professional service contract teachers, $1,437.
3:44:06 Orange County, $1,650 for effective, $2,025 for highly effective,
3:44:13 and a $750 bonus.
3:44:16 Osceola, $900 effective, $1,200 highly effective.
3:44:21 PSC, $1,150.
3:44:25 The magistrate made it clear in his recommendation that if you
3:44:29 do not fund the union’s proposal,
3:44:30 the gap between these districts will grow.
3:44:35 One thing that Dr. Mullins continues to neglect in his
3:44:38 presentations about Brevard Teacher Salary
3:44:41 is the fact that we are the third most experienced workforce in
3:44:45 the state.
3:44:46 We have 13.95 years experience.
3:44:50 This skews the data and makes it appear like we’re doing better.
3:44:55 Looking at the median analysis, BPS is 33rd in the state.
3:45:02 We are $1,990 below the state median behind Indian River, Orange,
3:45:10 and Seminole.
3:45:12 I’m going to talk more about the mean analysis in a second, and
3:45:16 we also have some outside analysis
3:45:17 that is also pointing to problems in Brevard County.
3:45:21 Looking at the placement scale, which is one of the most useful
3:45:25 things to look at because this is what we’re looking at with
3:45:29 recruitment,
3:45:30 you’ll see Brevard versus average at the bottom of each of these.
3:45:34 We are behind our comparables all the way through, all the way
3:45:39 through.
3:45:39 And there are only a couple places where we are ahead, and those
3:45:44 are likely to change in St. Lucie.
3:45:46 So as you’re trying to recruit teachers, this is what they’re
3:45:52 looking at.
3:45:53 Frankly, we could end up with a great credit rating, but no
3:45:57 teachers in front of students.
3:45:58 Average salary is skewed by our year’s experience.
3:46:09 You will see we are by far the most experienced teachers in the
3:46:14 comparable districts,
3:46:15 and we are still behind Indian, Seminole, and Orange, even
3:46:19 though we have substantially more experience.
3:46:22 And the districts that we are ahead of in average, we have far
3:46:28 more experience than they do.
3:46:30 $2,170 behind.
3:46:33 We are now 30th in the state in average teacher pay.
3:46:37 Are these headlines what you want for our community?
3:46:41 What kind of damage is this doing to the economy of Brevard
3:46:45 County?
3:46:45 How do you recruit teachers to come here with headlines like
3:46:50 this?
3:46:50 This was in the USA Today, and number four was Brevard County as
3:46:55 the most underpaid teachers in the nation.
3:47:00 And just to conclude, our salaries significantly lag behind
3:47:05 comparable districts,
3:47:07 despite having much more experience.
3:47:09 The district’s proposal would widen the salary gap.
3:47:13 We are not rewarding teachers for coming, and we are not
3:47:16 rewarding teachers for staying.
3:47:18 I want you to look at the June resignations and retirements on
3:47:22 your agenda.
3:47:23 Tomorrow you will see they are twice as many as there were last
3:47:28 year.
3:47:28 There has been a lot of talk today about some different funds
3:47:38 and categoricals, and I want us to be very clear.
3:47:43 We are not talking about restricted funds.
3:47:46 We are not talking about categorical funds.
3:47:49 We are not talking about committed funds or non-spendable funds.
3:47:53 The guidelines for the general fund talk about how much you need
3:47:57 to keep in a reserve as 3% to meet the state budgeting
3:48:03 requirements,
3:48:03 and that’s everything that’s not restricted, committed, or non-spendable.
3:48:06 In other words, according to the Government Accounting Standards
3:48:11 Board, non-spendable, that’s your inventory.
3:48:15 Restricted, talks about creditors, legislation, or statute.
3:48:19 Committed, set aside for a specific purpose.
3:48:24 Assigned and unassigned.
3:48:26 The only portions of the fund balance that we are discussing are
3:48:30 the assigned and unassigned.
3:48:32 So all of that talk about commitments and encumbrances and
3:48:38 categoricals and inventory.
3:48:40 Put it out of your head because that’s not what we’re talking
3:48:44 about.
3:48:45 Those are distractions from the facts.
3:48:57 We prepared for you several documents in short.
3:49:00 So in our tab one is our presentation.
3:49:03 Tab two is the district budget for the current year.
3:49:06 And tab three is the comprehensive annual financial report.
3:49:10 In your own comprehensive annual financial report from page five,
3:49:14 bullet five,
3:49:15 it says that there was 3.3 million in the assigned and 41.9
3:49:20 million in the unassigned funds.
3:49:22 So that means 45.2 million or 7.5% of the general fund revenue.
3:49:30 That’s twice what’s needed according to the state law.
3:49:39 Then you have your own internal policy.
3:49:42 This has been referred to as a state and board policy combined.
3:49:45 Let’s be clear again.
3:49:47 This is a board policy.
3:49:48 This is a choice.
3:49:49 Budgets represent priorities.
3:49:51 And you’ve made a priority to save money as opposed to putting
3:49:56 money into the pockets of the community members
3:49:58 that help the economy in Brevard County grow.
3:50:01 If you do not increase their salaries, that’s money that they
3:50:06 don’t have to put their own children through summer school,
3:50:08 go buy groceries or possibly, you know, maybe buy a new house
3:50:13 and stay in Brevard.
3:50:14 So you are making an economic choice for the entire community
3:50:18 because you are the largest employer in Brevard County.
3:50:21 And as your superintendent pointed out to you, because it’s a
3:50:34 board policy, a board policy can be changed.
3:50:36 Board policies are announced at one meeting.
3:50:39 And then after being heard, then they’re voted on.
3:50:42 You could change that policy tomorrow.
3:50:44 It is not a requirement of the state.
3:50:46 So please put that aside.
3:50:48 That 3.63% is nothing that helps your fund balance.
3:50:53 It is only a savings account that you claim you need for an
3:50:57 emergency.
3:50:58 Let’s also talk about the FEFP reserve.
3:51:02 Okay.
3:51:03 The FEFP reserve happened when our state was going through a
3:51:07 financial crisis.
3:51:08 The entire country was going through a financial crisis.
3:51:11 And we were getting funds from the federal government.
3:51:13 Several times the state was collecting less revenue than they
3:51:18 had anticipated.
3:51:19 And they put out a notice to school boards and told them you may
3:51:23 want to hang on to some of that reserve
3:51:26 and set aside a little bit of money because we think we’re going
3:51:29 to reduce the amount of spending per student.
3:51:32 That is not what happened in 18-19.
3:51:35 Actually, it was 129 fewer students, probably lost to those
3:51:39 charter schools whose funding went up.
3:51:42 So there is something in there that needs to be dealt with in
3:51:45 losing students to charter schools
3:51:47 and making sure that you’re not losing money in that area.
3:51:50 But there was not a budgetary adjustment.
3:51:52 And if there is one, the state will announce it as soon as they
3:51:55 get their funding analysis for the sales tax.
3:51:58 So you do not need to build in an FEFP reserve on top of a
3:52:03 contingency on top of a state-required 3%.
3:52:06 You’re padding your budget.
3:52:15 I also find it interesting that with the year ending in six days
3:52:22 that we can’t get more clear answers.
3:52:27 I’d like to point you to tab 2 in the book.
3:52:30 This is some selected pages from the Brevard Public Schools
3:52:36 budget.
3:52:37 We keep talking about 17-18 and some of the board members
3:52:40 pointed it out and said we’re really in 18-19.
3:52:42 So let’s look at 18-19.
3:52:44 The starting fund balance in the operating fund was 58 million.
3:52:48 The ending fund balance according to your budget is predicted to
3:52:53 go to 62 million.
3:52:54 The unassigned fund balance is predicted to increase by 5
3:52:59 million to 46 million dollars.
3:53:02 That’s in your own budget document.
3:53:05 And that budget document was created with 47 cents funding per
3:53:13 student.
3:53:14 We already know that the new funding per student is 159 times
3:53:19 greater or 75 dollars per student in the upcoming school year.
3:53:24 So your budgets do show your priorities.
3:53:28 You may need to make your staff your priority.
3:53:33 There’s two ways to look at your fund balance growing.
3:53:42 One, if you’re a growing district, obviously your fund balance
3:53:45 grows as you have increased numbers of students and you increase
3:53:48 your fund balance.
3:53:48 So 53 million dollars in a fund balance that was projected,
3:53:53 probably pretty reasonable.
3:53:55 However, when you look at it as percents over time, from 15-16
3:54:01 at 8.31% in the unassigned to 9.68% unassigned, and these
3:54:06 numbers all change over time.
3:54:09 We understand, but you do show that you are putting more money
3:54:15 away than you are spending.
3:54:17 Your fund balance is growing.
3:54:19 The Hamilton report says the unassigned is trending down.
3:54:24 Well, that’s only because in your budget you made some other
3:54:29 categories grow to make it look like it’s smaller.
3:54:33 You have to look at the actual annual financial reports at the
3:54:36 end of the year to look at trends.
3:54:38 And looking at trend data is how you can actually see what’s
3:54:42 happening in your budget, not relying on projections.
3:54:46 When Penny left Polk County where I’ve worked for 18 years, Polk
3:54:51 County had some spending practices very similar to Brevard
3:54:54 County with a 5% reserve and all of these things.
3:54:57 And we don’t do that anymore.
3:54:59 We simply turn every penny back into the pockets to the teachers
3:55:03 and the staff so that they can actually support and help our
3:55:06 students.
3:55:07 There’s a little bit of misunderstanding about how funds are
3:55:16 built.
3:55:17 And when you’re dealing with over a billion dollars, I admit it’s
3:55:21 a scary number.
3:55:22 And I would be very afraid if I were you of spending everything.
3:55:26 I get that.
3:55:27 But you look at your trends and you look at your history.
3:55:30 We also have given you a tab that shows your history.
3:55:32 It shows your fund balance growing in your annual financial
3:55:35 report.
3:55:35 You need to read your own documents.
3:55:37 You need to read the Moody’s reports.
3:55:40 Moody says very clearly when they’re giving you a rating,
3:55:44 governmental entities always have great ratings.
3:55:47 Unless, of course, you’re Flint, Michigan, who is broke.
3:55:51 You’re not broke.
3:55:52 It says you have a tax base that’s growing.
3:55:54 You have new building permits that are pulled.
3:55:57 It means you have more money you’re collecting in taxes.
3:56:00 The money that you need to pay for buildings comes out of
3:56:04 capital outlay, pico dollars, and it pays for your debt service.
3:56:09 The state is affecting your credit rating by not giving you pico
3:56:13 dollars.
3:56:14 There’s a problem that needs to be addressed legislatively.
3:56:17 But paying your teachers is not going to affect that.
3:56:21 So let’s talk about the real world in attrition.
3:56:28 They talk about recurring dollars and nonrecurring dollars, but
3:56:32 every year employees resign.
3:56:34 They retire.
3:56:36 New employers are hired, typically at lower salaries, usually
3:56:39 about a $20,000 gap.
3:56:41 That’s just a natural drag on payroll over time.
3:56:45 And so simply allowing people to separate employment actually
3:56:50 causes this.
3:56:51 This is the average teacher salary reported to the Department of
3:56:55 Education.
3:56:56 And notice what happens when you freeze salaries.
3:56:59 For ‘18-‘19, the current rate is $46,316.
3:57:04 That is only $262 more than it was five years ago.
3:57:11 So by freezing salaries, you actually decrease the amount that
3:57:16 you’re spending on instruction and on your classrooms.
3:57:20 Here’s what this looks like over time because you can see the
3:57:24 average raise in the fourth line of the salary settlement.
3:57:28 And then you can see what actually happened with actual salaries
3:57:32 and benefits for that same time period.
3:57:35 These aren’t projections of numbers.
3:57:37 These are actual numbers that are pulled from the report sent to
3:57:40 the state.
3:57:41 This is the actual salary from ‘15-‘16 divided by the 4,959
3:57:46 employees that you reported.
3:57:48 The average change in salary was only $1,509.
3:57:51 That’s lapse.
3:57:52 That’s turnover.
3:57:54 You can actually see in ‘16-‘17, the small raise actually was a
3:57:59 negative impact on your average salary.
3:58:01 So the average salary has really only increased by about $892.
3:58:11 That was over last year’s salary.
3:58:13 We now have the ‘18-‘19 numbers and we’ve updated them.
3:58:17 Again, all of these numbers change over time.
3:58:19 So last year we had $892, but when ‘18-‘19 numbers came out, it
3:58:24 actually dropped to $262 over time.
3:58:28 Now I’m going to take you through a document that you’ve been
3:58:31 dying to look at since you started asking questions of Penny.
3:58:43 In your own annual financial statement from April 30th that was
3:58:47 on your board website, it’s in the fourth tab.
3:58:50 I believe it’s the blue one.
3:58:52 It has monthly financial report summary for period ending April
3:58:56 30th, 2019.
3:58:58 It says your current general fund balance is $123 million.
3:59:02 I’ll wait till you all get there.
3:59:13 All right, so that was a question that was asked earlier.
3:59:25 It’s in your own documents.
3:59:27 So on the financial statements on page 5, notice it says adopted
3:59:32 budget, amended budget, obligated, actuals, and available budget.
3:59:38 So please look at your adopted budget.
3:59:40 Your adopted budget was $372 million for instruction.
3:59:45 You’ve now amended your budget to being $385 million for
3:59:49 instruction.
3:59:50 But I’d like to point out the actual figures.
3:59:52 April is 10 months through the year.
3:59:54 I love easy math.
3:59:55 $280 million.
3:59:57 That’s $28 million a month.
3:59:59 So you have two more months in this pay cycle.
4:00:04 And even if what Penny says is true, that you’re prepaying July
4:00:08 expenses in June,
4:00:09 you’re still not going to get anywhere near your $385 million
4:00:14 that your budget has been amended to.
4:00:16 As a matter of fact, if you extrapolate out that $385 million
4:00:21 into 12 months and add the Brevard Federation of Teachers
4:00:26 proposal,
4:00:26 you still end up about $350 million.
4:00:31 That’s $35 million less than your amended budget.
4:00:34 Where do you think that $35 million will go?
4:00:36 It will be returned to the fund balance.
4:00:39 And if you follow that number down to the bottom about the
4:00:43 beginning fund balance and the ending fund balance,
4:00:46 they have an ending fund balance for amended budget of $32
4:00:49 million.
4:00:49 Add $35 to that.
4:00:50 I predict your fund balance will go up to $67 million if you do
4:00:55 the Brevard Federation of Teachers proposal.
4:00:57 And if you don’t do it, it will probably go over $70 million.
4:01:04 So, in conclusion, you have a healthy fund balance.
4:01:10 The recurring salary increases are not perpetually recurring due
4:01:15 to lapse in turnover.
4:01:16 Next year’s funding is a known quantity.
4:01:19 Wages and Brevard do lag with comparator districts and the
4:01:24 public interest is better served by actually paying your
4:01:27 employees
4:01:28 to put money back into your community and help your students.
4:01:45 On June 13th, 2018, I emailed your chief negotiator.
4:01:54 In part, the email read, “I am canceling our bargaining session
4:01:58 on June 25th.
4:01:59 For the past three years, we’ve asked the district to make a
4:02:02 plan to prioritize pay.”
4:02:04 You and I both sat at yesterday’s budget workshop.
4:02:07 It was apparent that, once again, this board has no plan to
4:02:10 increase our pay levels comparable to surrounding counties.
4:02:13 Over one year later, the facts show that this board still has
4:02:17 failed to prioritize teacher pay.
4:02:19 That can change today.
4:02:21 This school year, although we are the third most experienced
4:02:26 workforce,
4:02:27 we’ve slipped to 30th in the state in average teacher pay.
4:02:31 We are $2,170 behind the state average.
4:02:36 And the fact is, we are not retaining teachers.
4:02:39 On tomorrow’s agenda, there are nearly twice as many teachers
4:02:43 resigning or retiring as there were in June of last year.
4:02:47 At the October 17th bargaining session, which was two months
4:02:50 after negotiations began,
4:02:52 the district finally put forth a salary proposal.
4:02:56 The district CFO, Penny Zerker, emphatically proclaimed that, “100%
4:03:02 of the money is on the table.
4:03:04 I don’t have any more money to come back with.”
4:03:07 Was her statement accurate?
4:03:09 You and I know that she was incorrect.
4:03:12 There was more money to be put on the table.
4:03:14 Dr. Mullins’ recent comments suggesting, “We hadn’t stopped
4:03:19 working on the offer,”
4:03:20 fails to recognize that the only reason why Dr. Mullins did not
4:03:24 stop working on his offer
4:03:25 was that this union made him continue working on his offer.
4:03:28 His team said, “We don’t have any more money.”
4:03:32 When the district returned with an increased offer in December,
4:03:36 it was only because we pushed and pushed the district to
4:03:39 investigate the over-budgeting of teachers.
4:03:42 Ms. Zerker argued that we were wrong, changing her answers as to
4:03:47 why more times than I could count.
4:03:49 Was her statement accurate?
4:03:51 You and I know she was incorrect.
4:03:53 Your final salary proposal was amongst the lowest in the state
4:03:57 in recurring dollars.
4:03:58 We told you you could do better, that you needed to be
4:04:01 competitive with other districts.
4:04:03 Ms. Zerker told you there was absolutely no way you could put
4:04:07 more money on the table.
4:04:08 Was her statement accurate?
4:04:10 You and I know she was incorrect.
4:04:13 And that brings us to Dr. Mullins’ most recent solution,
4:04:16 a solution he created with his most trusted advisor, Ms. Zerker,
4:04:20 once again telling him there is absolutely no way we can do more.
4:04:24 She said that in October.
4:04:26 She said that in December.
4:04:27 She said that in March.
4:04:28 And now she’s saying that again in June.
4:04:31 Not one time has she been accurate.
4:04:34 The question before you is whether to accept Ms. Zerker’s flawed
4:04:38 analysis yet again
4:04:39 or stick with the recommendation of a neutral, unbiased third
4:04:43 party, the special magistrate.
4:04:45 A special magistrate the district and I both selected.
4:04:48 A special magistrate that was a school board member just like
4:04:52 you.
4:04:52 A special magistrate that was a chief negotiator and associate
4:04:55 superintendent for human resources.
4:04:58 And a special magistrate who has not sided with the union over
4:05:01 salary in recent history.
4:05:03 The answer to that question is painfully obvious.
4:05:07 You must accept the special magistrate’s recommendation to fund
4:05:11 the BFT proposal.
4:05:12 A recommendation that revealed your fiscal strategy results in
4:05:16 the, quote,
4:05:17 underutilization of funds generated at the federal, state, and
4:05:20 local level.
4:05:21 Funds that are intended to be applied toward the education of
4:05:25 children.
4:05:25 And, quote, that there are sufficient funds to fund the BFT
4:05:29 final proposal.
4:05:30 And moreover, the recommendation concludes, quote, that funding
4:05:34 the BFT proposal will have a positive impact
4:05:37 on the interest and welfare of children and public served by the
4:05:41 school board of Brevard County.
4:05:42 You must accept the magistrate’s recommendation or this board
4:05:47 will not be acting in the best interest of students
4:05:49 and permanently damaging the trust that exists between elected
4:05:53 officials and stakeholders.
4:05:55 You must recognize that a disaster is here and it is time to
4:05:59 start using those funds set aside for a disaster.
4:06:03 Because that disaster is a massive teacher shortage.
4:06:07 Do not let us down.
4:06:30 Thank you.
4:06:31 We were going to sit down so we can look at our documents.
4:06:35 I’m sorry.
4:06:36 I can’t hear you.
4:06:37 We were going to sit down so we can look at our documents.
4:06:40 Oh, yeah.
4:06:41 That’s just fine.
4:06:42 You have microphones there.
4:06:43 Thank you for your time, Mr. Kaluchi.
4:06:45 Board members, I’d like to provide you with an opportunity to
4:06:47 ask questions that you may have
4:06:49 for Ms. Dawson or Mr. Kaluchi.
4:06:51 Remember, you have the opportunity to ask final questions at
4:06:54 either side once – we already said
4:06:56 that once both presentations are made.
4:06:58 So who has questions for Mr. Kaluchi?
4:07:02 Do we need a minute to organize our –
4:07:08 Yes, please.
4:07:09 Yeah, because I have stuff everywhere.
4:07:11 Do we need a recess or do we need just a minute to pause for a
4:07:17 minute?
4:07:18 No, it’s a good question.
4:07:19 I’d be open at either if you want to sit here a little bit or if
4:07:25 you want to put it in whatever you guys want.
4:07:28 Mr. Susan, you have to speak into the microphone.
4:07:29 There’s a court reporter today.
4:07:30 Sorry.
4:07:31 I know we’re not used to that.
4:07:32 I’d be okay with either if you guys need the time.
4:07:35 Does anyone need a recess?
4:07:37 Yeah.
4:07:38 Okay.
4:07:40 We’re just going to pause for a minute so we can compile all our
4:07:43 notes and questions.
4:07:43 Thank you.
4:07:47 I have just an initial question.
4:08:12 And I realize that the amount is what you’re asking.
4:08:20 Ms. Dawson, you mentioned that you’re not talking about
4:08:24 committed and you added that into the other thing.
4:08:27 So, because you recognize from the outset that the proposal you’re
4:08:32 asking for, you know,
4:08:34 that the budget’s tight enough – that’s what we’re assuming –
4:08:37 that you’ve asked us to fund it out of reserves.
4:08:39 Do you have specific areas that the union is suggesting to the
4:08:43 district out of those?
4:08:45 Because it’s a pretty good list below that committed that you
4:08:49 recommend that the district take those – take that increase out
4:08:54 of?
4:08:54 I would just refer you to your budget document that says you’ve
4:08:57 budgeted $372 million for instruction.
4:09:00 And you’re on track to spend less than $340 million.
4:09:05 So, that’s not actual reserves at this time showing what we’ve
4:09:08 been talking about, but just what you’re anticipating our
4:09:11 reserves to increase.
4:09:12 I’m not sure I follow.
4:09:14 Okay.
4:09:15 So, because what – this is a little bit different.
4:09:18 I’m looking at what you guys – I’ve been looking at what you
4:09:21 guys presented to the magistrate and then what you’re presenting
4:09:23 to us today.
4:09:23 There’s a little bit of difference in that and what you’ve just
4:09:26 presented looking at the budget is a little bit different.
4:09:29 So, I’m asking you, does the union have a proposal or a
4:09:32 suggestion of where we take that money out of reserves?
4:09:36 Which category we would take that out of?
4:09:39 I don’t believe it needs to come out of reserves.
4:09:41 I believe it’s already built into your budget.
4:09:43 You have $372 million budgeted for instruction.
4:09:46 And I just showed you you’re on track to only spend about $336
4:09:50 million.
4:09:51 Okay.
4:09:52 So, it’s in your budget.
4:09:54 I think it’s just not very good.
4:09:59 Ms. Campbell, was that your last question for now?
4:10:04 For right now.
4:10:05 Okay.
4:10:06 Can I ask a quick question?
4:10:07 Mr. Susan.
4:10:12 So, I’m looking at the previous years of instructional budget.
4:10:23 And it goes 15-16, we spent $347 million on instruction.
4:10:32 16-17, we spent $349 million on instruction.
4:10:37 17-18, we spent $370 million on instruction.
4:10:41 So, last year we spent $370 million, according to the document
4:10:47 that we report to the state that you drew from.
4:10:49 You’re saying that we’re actually going to decrease the amount
4:10:52 of instruction by, you said, to, what was that?
4:10:56 300 and something?
4:10:57 300?
4:10:58 Which document are you referring to?
4:11:00 So, at the end of every year, part of the DOE website, we report
4:11:04 all of our expenses.
4:11:05 It’s the final one.
4:11:06 Not the budget that we’ve set out, but the expenses.
4:11:08 If you go back previous years and you look specifically at
4:11:11 instruction, and I know there’s some carryover into the other
4:11:15 fields, but we are spending inwards of, you know, $349 million.
4:11:19 I can go through it again.
4:11:20 So, 15-16, 347, 16-17, 349, 17-18, 370.
4:11:26 So, we spent $370 million last year on instruction.
4:11:29 You’re saying that it’s reducing – you said you reduce it down
4:11:33 to – what was that again?
4:11:34 If you look at your current spending –
4:11:36 Right.
4:11:37 – and you extrapolate it out to 12 months, it comes up to just
4:11:40 less than $340 million.
4:11:42 I’m not sure which document you’re referring to.
4:11:44 If you look in the gray tab and look at page 136 and 137, it
4:11:55 actually gives you the instructional line item.
4:11:57 It talks about salaries by object being $334 in 15-16, $333 in
4:12:03 16-17, and $343 in 17-18.
4:12:07 Let me get there.
4:12:09 Which page was it?
4:12:10 136 and 137.
4:12:12 Got it.
4:12:13 Okay, I’m on that.
4:12:14 Go ahead.
4:12:15 All right.
4:12:16 So, if you turn to 137, 137, June 2016 is the ending of 15-16.
4:12:23 Down in the middle of the page, the state does not repeat the
4:12:26 headers.
4:12:27 It says $334 million.
4:12:29 That’s for instruction.
4:12:30 Got it.
4:12:31 Then $333 for instruction.
4:12:33 Sure.
4:12:34 Then $343 for instruction.
4:12:35 If you then look at your budget document, which is back under
4:12:39 the green paper, the green
4:12:41 tab, and it shows you that you’ve budgeted $372 million for
4:12:47 instruction?
4:12:48 Is everybody following along?
4:12:51 Under the green tab, which page you said?
4:12:53 103.
4:12:54 Got it.
4:12:55 That’s the one that shows your total ending fund balance at the
4:12:59 end of the ‘18-‘19 school year
4:13:01 was predicted to go up to $62.45 million.
4:13:06 Right.
4:13:07 So, going back to fiscal year ending 2016, ‘17, and ‘18, we’re
4:13:13 running $334, $333, $333, $343, and if you look at what we
4:13:19 reported to the state at the end of the year, part of the DOE
4:13:22 expenses, right, it ends up being $370 for last year.
4:13:26 And that’s for the same exact one, so what I’m guessing is –
4:13:31 Textbooks or something at the end?
4:13:33 No, it’s what we – yeah, there’s got to be something.
4:13:35 Ms. Zirker, can you clarify what I’m getting at?
4:13:37 Mr. Susan, just one second.
4:13:39 Ms. Envall, is it appropriate now for us to go back and forth
4:13:43 with questions, or should we –
4:13:44 If we’re going forward just like we did for the superintendents
4:13:47 position –
4:13:47 I’ll hold, I’ll hold for the final one.
4:13:48 You can still answer questions.
4:13:49 I’ll hold it.
4:13:51 Okay.
4:13:52 Thank you.
4:13:53 Let me try to explain a little bit.
4:13:54 Some of these things are – they do combined balance statements,
4:13:57 so you can only compare that balance statement to itself because
4:14:01 there’s different categories.
4:14:02 But if you turn back to pages 134, I believe that is what you’re
4:14:07 looking for.
4:14:08 134 has the instructional line item similar to your budget.
4:14:13 It doesn’t – it must just be the general fund only.
4:14:15 The other one is a combined statement, and it shows you some
4:14:19 different categories.
4:14:20 But notice that it’s showing that in June, they expected
4:14:27 expenditures to be $392 million for instructional line item.
4:14:34 And it also shows you on the previous page, shows you your
4:14:40 general fund for 10 years.
4:14:44 This is in your own financial documents every year.
4:14:47 Sure.
4:14:48 So just clarifying what you just said, this on page 134 is our
4:14:58 actual spending.
4:15:01 Yes.
4:15:02 For – so in 2018, we actually spent on instruction $392 million,
4:15:07 $894,000.
4:15:08 That’s what it said.
4:15:09 That’s what was reported to the state for instruction.
4:15:11 Okay.
4:15:12 Currently, you’re spending less than about $340 million,
4:15:15 according to your current documents.
4:15:17 April.
4:15:18 Okay.
4:15:19 But are you – but you’re using the different set.
4:15:22 So you referred us earlier back to the page 137.
4:15:26 Right.
4:15:27 That’s a combined statement where you can compare that – if you
4:15:30 read the header on it, it says,
4:15:32 “Summary of revenues and expenditures, major object and changes
4:15:36 in fund balances, general fund,
4:15:37 last 10 years.”
4:15:39 The state has you put different funds together and pieces
4:15:42 together.
4:15:42 You can look at that report for trends, but you can’t compare
4:15:45 that to your budget.
4:15:46 There’s only certain things that you can compare to your budget.
4:15:49 That is not one of them.
4:15:51 But it does give you an overall picture of spending, so you can
4:15:57 see a trend line.
4:15:59 Go ahead, Ms. Pelford.
4:16:00 Ms. Sunbaugh, am I allowed to clarify for the board members that
4:16:10 might be less familiar with the – okay.
4:16:13 So, basically, what you have to keep in mind is, on 134, you’re
4:16:18 looking at instruction,
4:16:19 and there are lots of different elements to instruction.
4:16:22 So that’s the complete expenditure on everything included in
4:16:25 instruction.
4:16:26 When you go over to 136, the number that Mr. Susan was
4:16:33 referencing of the 334,
4:16:36 333, 334 for 16, 17, 18, that is only salaries.
4:16:42 Ms. Yeah.
4:16:43 But it’s all funds, not just instruction.
4:16:45 Ms. So it’s not looking at – it’s not looking at the total
4:16:49 instruction object,
4:16:50 and so that’s why they’re two completely different numbers.
4:16:53 Does that clarify for you guys?
4:16:54 No, it does, it does.
4:16:55 That’s why.
4:16:56 Ms. No, I’m still confused on the 392 number as of June 30, 2018.
4:17:04 If that’s the final number that went to the state, then I don’t
4:17:08 understand why –
4:17:09 Ms. Okay.
4:17:10 Ms. – you all think that 385, just because at the end of April
4:17:15 we hadn’t spent that yet.
4:17:16 I have no idea until we get back over to this side what
4:17:18 expenditures are coming in the next two months,
4:17:21 but maybe they are the gap between 385 and what we’ve spent.
4:17:26 I think that’s a guesstimation, if I’m understanding this
4:17:29 correctly.
4:17:29 Ms. Well, we have extrapolated 10 months of salary out to 12
4:17:32 months,
4:17:33 and then if you add an additional month because Ms. Zerker said
4:17:36 that you prepay June – July payments in June,
4:17:39 you’re still not going to be closing in on that number anywhere
4:17:43 close, but I’ll explain the expenditures.
4:17:46 Instruction line item is called 5,000 in the budget.
4:17:49 The budget is then – that line item is made up of salaries,
4:17:52 benefits, other expenditures, capital outlay,
4:17:56 miscellaneous, energy.
4:17:58 Your budget – you would have to look at it in a 3D model to
4:18:01 fully track all of this information
4:18:03 because there’s columns and rows and then there’s subcategories
4:18:07 in the budget.
4:18:08 What you see then on pages 136 and 137 breaks out salaries that
4:18:14 are paid out of the general fund.
4:18:16 That includes instruction, administration, school board, all the
4:18:20 way down.
4:18:21 Maintenance – that’s just total salary.
4:18:23 So it’s a different way of looking at the same number.
4:18:26 You can see the salary trends that way.
4:18:29 But we’re looking at our people and instruction and we’re
4:18:32 comparing that to your own budget document
4:18:34 that says as of April 30th, you had currently only expended $280
4:18:40 million in that line item for instruction.
4:18:43 So the line item instruction under expenses for $372 million,
4:19:00 you’re saying that is only for the items that you just listed?
4:19:03 For employee pay and benefits.
4:19:11 Are you following me?
4:19:12 I need to know which page you’re on.
4:19:13 It’s on page five.
4:19:14 I pulled it out of your book from the –
4:19:16 Okay.
4:19:17 Page five is in the –
4:19:19 It says Brevard County School Board General Fund 2018-19 as of
4:19:23 April 30th, 2019.
4:19:24 I believe this is where –
4:19:25 You’re talking about our presentation?
4:19:26 I believe this is where you’re telling us to pull the funds from,
4:19:29 if I’m correct.
4:19:30 That you’re saying that we have budgeted for $372, we have a
4:19:36 budget amendment up to $385, and that we’ve only spent –
4:19:39 It was from the gray tab.
4:19:41 Yep.
4:19:42 We’re not – I don’t believe that you need to expend anything
4:19:49 out of your fund balance.
4:19:50 That fund balance was there at the end of ‘17-‘18.
4:19:54 When all bills are paid in five days, you will then have a fund
4:19:58 balance that’s left.
4:20:00 Right now, all the money, including last year’s fund balance, is
4:20:03 considered revenue available for expenditure.
4:20:07 You budget those expenditures.
4:20:09 You’ve budgeted $385 million for salaries.
4:20:13 If you look at your own budget documents saying what your trend
4:20:17 is for spending, you can actually compare the current year to
4:20:22 last year on page six of the April 30th report that was sent to
4:20:31 the board.
4:20:32 You actually spent in April 2019 was $280.8 million on salaries.
4:20:38 April 2018 was $284 million.
4:20:43 There’s your lapse.
4:20:45 That’s when you have the current employees that you’ve funded
4:20:48 since the beginning of the year.
4:20:49 And I was interested if Ms. Zerker was still using the same
4:20:52 accounting practices that we have in Polk, and she did say that
4:20:56 she uses estimates.
4:20:57 So the way this works is they come up with all the employees in
4:21:01 August, add up their salaries, divide it by 12, and every month
4:21:05 put that into the budget and say 1/12/1/12.
4:21:09 What that doesn’t track is everybody that left in October,
4:21:13 retired in December, left in February.
4:21:15 All of those turnovers then get captured again at the end of the
4:21:19 year.
4:21:19 So there’s two kinds of lapse.
4:21:21 There’s the lapse from the frozen salaries for the employees
4:21:24 that have been sitting at the same salary all year.
4:21:27 And then there’s the lapse of all the people that leave.
4:21:29 And then the unfilled positions also creates lapse.
4:21:33 I think your lapse in this district is probably closer to 8 or 9
4:21:45 million, not 1.9 million.
4:21:51 Just as a point of clarification on your last point, yes, we had
4:21:54 some people who retired in September, even October, and all
4:21:57 throughout the year.
4:21:58 But not all those positions are empty.
4:22:00 There are people who have to be in those classrooms, correct?
4:22:03 So those are higher.
4:22:04 So that’s not as if we are just not having to pay those salaries
4:22:07 for the rest of the year.
4:22:08 Sometimes you fill them.
4:22:09 Sometimes you don’t.
4:22:10 But when you do, you typically have a gap between the people
4:22:13 that leave.
4:22:14 Because you have an average experience of around 13 years.
4:22:17 And I’m guessing your average experience when you hire is
4:22:20 probably about 3 to 5 years.
4:22:21 So that difference in pay plus benefits, average is about to be
4:22:24 about $20,000 per person.
4:22:26 So for every employee that you turn over, you probably – and
4:22:30 that doesn’t even include like if you have a waiting period on
4:22:33 health insurance.
4:22:33 I’ve calculated this for 18 years in Polk.
4:22:36 Trust me, it’s about $20,000.
4:22:38 Every time we lose a teacher and rehire, there’s a $20,000
4:22:42 savings.
4:22:42 On average.
4:22:43 Sometimes you hire someone with more experience.
4:22:45 But sometimes you hire a lot of beginning teachers.
4:22:47 And on average, the average employee experience of new hires in
4:22:51 Polk is three and a half years.
4:22:53 The average person leaving is 20 plus years.
4:22:56 But are you saying that the average difference in their salary
4:22:58 is $20,000?
4:22:59 Because it’s salaries and benefits.
4:23:01 Because you have to pay the retirement portion.
4:23:03 All of those things are based on the salary.
4:23:05 So it’s an exponential figure, including like unemployment is an
4:23:09 exponential figure.
4:23:10 It’s based on salary.
4:23:14 I’m sorry that I don’t know.
4:23:15 What is your position at Polk?
4:23:16 I used to be a service unit director in Polk.
4:23:18 I’m now the bargaining specialist for the southern half of the
4:23:21 state of Florida for the Florida Education Association.
4:23:23 Okay.
4:23:24 So you’re not employed by Polk County currently?
4:23:26 Not anymore.
4:23:27 Okay.
4:23:28 So you’re not employed by Polk County.
4:24:22 Members of the board.
4:24:25 That concludes the presentations.
4:24:27 And this matter is now before us.
4:24:29 Pursuant to section 447.403, Florida Statutes.
4:24:34 As a reminder, the statute requires us, the legislative body,
4:24:37 to take such action as it deems to be in the public interest,
4:24:40 including the interest of the public employees involved,
4:24:43 to resolve all disputed impasse issues.
4:24:46 So board members, if you have any final questions for either
4:24:49 party,
4:24:49 you may ask them now.
4:24:50 I will give you a few minutes to gather your questions,
4:24:52 and we will proceed with questions to either side.
4:24:56 Ms. Tuskevich, may we request a quick restroom break?
4:24:59 Yes, we will recess for five, ten, five minutes.
4:25:02 We’re going to recess for five minutes.
4:25:33 We’re going to recess for six minutes.
4:25:34 We’re going to recess for five minutes.
4:35:20 As a reminder, we’ve got another message from the court reporter
4:35:23 again.
4:35:23 We are not speaking loud enough into the microphones, including
4:35:26 both parties answering questions.
4:35:27 So if we can all project the best we can so she can record this
4:35:32 process, it would be appreciated.
4:35:33 I’m going to reread section D of our agenda as we start into
4:35:38 asking questions of both parties.
4:35:40 Members of the board, that concludes the presentations, and this
4:35:44 matter is now before us.
4:35:45 Pursuant to section 447.403 Florida Statutes.
4:35:50 As a reminder, the statute requires us, the legislative body, to
4:35:54 take such action as it deems to be in the public interest,
4:35:58 including the interest of the public employees involved, to
4:36:01 resolve all disputed impasse issues.
4:36:03 So, board members, if you have any final questions for either
4:36:07 party, you may ask them now.
4:36:08 I will give you – well, we’ve had a few minutes to gather our
4:36:10 thoughts, so it’s time to ask questions.
4:36:12 Who would like to start?
4:36:13 I’m sorry?
4:36:14 Hi.
4:36:15 Okay.
4:36:16 I’ve heard very – two compelling presentations, and I
4:36:22 appreciate both of you.
4:36:24 But I’m a little confused on the disparity of the difference
4:36:28 between the lapsed funds according to the attrition.
4:36:32 So I hear on one part 1.3 and the other 8.9, I think.
4:36:39 So help me out here.
4:36:41 It’s such a big gap that I’m trying to understand how it is so
4:36:45 large and so different between the two parties.
4:36:49 Ms. McDougall, please address your question to one party or the
4:36:52 other, or both at one time, but let’s help them have order.
4:36:55 I would like both sides, again, to help me understand why you’re
4:37:00 both so far apart.
4:37:01 I don’t care who goes – I don’t care who goes first.
4:37:04 Dr. Mullen, do you understand the question?
4:37:06 Yes.
4:37:07 Okay.
4:37:08 We want to understand how you come up with the 1. –
4:37:11 It’s approximately $1.4 million annually.
4:37:14 In attrition.
4:37:15 Yes.
4:37:16 And then when you’re finished, Mr. Colucci, we would like to
4:37:19 hear how you all come up with the 8.9.
4:37:24 Thank you.
4:37:25 I will do my best.
4:37:26 Ms. Zerker is much more familiar with the calculations, but
4:37:31 finance team actually look at the number of retirements on an
4:37:34 annual basis.
4:37:35 They do retirement salary calculations against average hiring,
4:37:40 the cost of the replacement of those positions from the previous
4:37:46 year, and calculate a true attrition.
4:37:50 Over the last two years, those have been calculated, projected,
4:37:53 and then they’ve been verified and very close.
4:37:55 So those are approximately, on average, of $1.4 million for 2017-18
4:38:01 and – I’m sorry, yes, for 2017-18 and going into 2018-19.
4:38:08 The union presented at the magistrate’s hearing a calculation
4:38:14 that we have not been able to verify.
4:38:18 We looked into their explanation of the calculations, and it is
4:38:22 just not verifiable.
4:38:23 When we use their presentation and divide the number of the
4:38:28 average savings into the amount that they’re proposing, it totals
4:38:34 over 5,700 teachers, which we do not have.
4:38:39 We’ve – we’re right at around 5,000 teachers.
4:38:44 So our calculations are based on an annual projection, based on
4:38:49 a formula, and then we go back and verify it, and it has been
4:38:52 consistent over the last two years.
4:38:54 Thank you, Dr. Belson.
4:38:55 Mr. Colucci.
4:38:56 Once again, remind you that we use the actual district payroll.
4:39:01 We public records requested the payroll for several years, and
4:39:06 it’s actually very simple, and it appears that the
4:39:10 superintendent is over-complicating this.
4:39:13 If you look at the final number spent on salary and compare it
4:39:19 year over year, you will see that you are spending less.
4:39:23 Therefore, that less amount is taken off the raise, so to speak.
4:39:29 So it’s not complicated to look at.
4:39:32 It’s what you’re not spending that you are budgeting to spend on
4:39:36 salary.
4:39:37 So I know I sent some of you those exact records that we
4:39:41 analyzed, and you can see the labs very easily by looking at the
4:39:46 bottom line.
4:39:47 And we calculated it to be, on an average, $3.6 million per year,
4:39:54 on an average.
4:39:56 And I also want to remind you about the slide that we presented,
4:40:01 average teacher salary in Brevard, according to DOE.
4:40:04 The incorrect budgeting that the district is currently doing
4:40:10 would lead you to believe that our average salary at this time
4:40:14 should be well over $50,000 since 2013-14.
4:40:19 But you will see, in 2013-14, the average salary was $46,054.
4:40:26 It is now $46,316.
4:40:31 If their argument was correct, it would be in the $50,000.
4:40:37 Our average salary is not increasing with these raises.
4:40:42 It’s your responsibility to pay them.
4:40:46 Thank you.
4:40:47 Ms. Deskovich, Madam Chair, Ms. McDougal, if it would be helpful,
4:40:50 we did do a calculation using both the union’s calculation of a
4:40:55 $3.6 million attrition against our calculated and confirmed attrition
4:41:02 rate.
4:41:02 I could provide that handout for you, which may show the
4:41:05 implications of it.
4:41:06 Can you hand it to Ms. Escobar, please?
4:41:09 Mr. Colucci, Ms. Dawson, I believe Ms. Dawson, I wrote a note
4:41:15 here that she said that she thought the attrition rate was $8 or
4:41:20 $9 million?
4:41:21 Did you say that?
4:41:22 Did I write that down correctly?
4:41:23 Did anyone else catch that?
4:41:24 Yes.
4:41:25 Okay.
4:41:26 And then Mr. Colucci just said it was $3.6 million, and the
4:41:28 district is saying it’s $1.6 million.
4:41:30 So those numbers are, you know, very wildly.
4:41:35 Can you help explain the difference between your $8 and $9 and
4:41:38 his $3.6, please?
4:41:39 Yes.
4:41:40 You have to know exactly what someone is calculating for attrition.
4:41:44 Is attrition unfilled jobs?
4:41:47 Is attrition turnover when you hire new staff at higher levels,
4:41:51 I mean, at lower levels than you did at higher levels?
4:41:54 Anthony said that last year you guys hired 400 new teachers.
4:41:59 If the average price difference, let’s just say it’s $10,000 per
4:42:03 employee from 50,000 hiring at 40,000, just using easy math,
4:42:09 that’s $4 million.
4:42:13 $1.6 million at an average salary is about 30 people.
4:42:17 So are they calculating empty positions?
4:42:20 Are they calculating actual turnover?
4:42:22 Are we calculating just retirements?
4:42:24 The word “lapse” requires definition to be able to figure out
4:42:28 what it actually means.
4:42:30 But if you are filling 400 positions a year, I believe that the
4:42:34 turnover is actually closer to about $20,000 per person, which
4:42:38 is $8 million.
4:42:40 Do you have any record or proof when you bring those numbers to
4:42:44 us?
4:42:44 We need to be able to see – I love that you think it’s $10
4:42:47 million or $20 million or $20,000.
4:42:48 Anthony says you hired over 400 new employees.
4:42:51 Roughly.
4:42:53 And so –
4:42:54 But the amount of the difference, and I think that’s what Ms.
4:42:56 Campbell was trying to get at.
4:42:57 Right.
4:42:58 Your HR would have to calculate that.
4:43:00 And I’m just using an example because Polk is very similar size
4:43:03 to Brevard County.
4:43:04 We’re only slightly larger.
4:43:06 We don’t have as high a year of experience of the 13 years like
4:43:11 you do.
4:43:11 But if you just take examples from other districts, because that’s
4:43:14 all this is about, is about comparator districts.
4:43:16 And in a comparator district, it’s a $20,000 savings.
4:43:19 And that was actually calculated by the HR department in Polk
4:43:23 County.
4:43:23 They said the average new employee there has three and a half
4:43:25 years of experience.
4:43:26 I believe if your employee group would calculate that, they
4:43:29 could probably verify those numbers.
4:43:31 However, on the fly, no, I can’t verify that because your HR
4:43:34 would have to give us those figures.
4:43:36 Thank you.
4:43:38 Ms. McDiggle, do you have another question?
4:43:41 Board members?
4:43:46 Mr. Susan?
4:43:47 What are the actual total number of teachers that we rehired
4:43:51 this year?
4:43:52 What was the total number?
4:43:54 He says it’s close to 400.
4:43:55 Let’s get a real number.
4:43:57 I don’t have that information with me right now, but I can get
4:44:10 it.
4:44:11 I have a question.
4:44:13 Ms. Zerker, do you know what goes into the calculation of attrition
4:44:18 that we’re using or Mr.
4:44:20 or Dr. Mullins for that 1.6 that you’re coming up with?
4:44:23 Because I do agree, we have to – if everyone’s using different
4:44:25 calculations, they’re not going
4:44:27 to compare.
4:44:28 To get the lap – recurring lap salary from our retirees being
4:44:33 replaced, we take and look
4:44:35 at the individual retirees of which coming out of 17-18 into 18-19
4:44:41 was 187.
4:44:42 That is not just teachers, that is total retirees.
4:44:46 And then we compare those positions against the average new hire
4:44:53 salary for the previous year.
4:44:55 So in budgeting for 18-19, we looked at the average new hire
4:45:00 from the previous year of the ranges
4:45:04 that they were hired in, and that becomes our budgeted number
4:45:07 for vacancy.
4:45:08 We do not use an average salary, and we do not use the lowest,
4:45:13 because people may come in at the bottom rung.
4:45:16 They may come in much higher.
4:45:18 So we take the average of what was hired in in the previous year
4:45:22 against the retiree salary
4:45:26 to calculate the estimate for the new year.
4:45:29 You said retirees.
4:45:31 Do we use – do we predict the lapsed dollars from attrition for
4:45:36 people that have quit also,
4:45:37 or just retirees?
4:45:39 They do come into the budget when we do the final budget and run
4:45:43 the final August payroll
4:45:45 plus vacancies to build our final budget.
4:45:48 Anything there would show.
4:45:50 If you were to go back for the last few years and look at the
4:45:53 differences between our two budgets,
4:45:54 you will not see significant dollars.
4:45:57 So that 1.6 – am I getting that right, 1.6 million?
4:46:00 1.4.
4:46:01 1.4 million.
4:46:02 Is that just retirees, or are you – is that what it’s done?
4:46:07 That’s just retirees.
4:46:08 It’s very difficult to judge who is leaving and when,
4:46:13 particularly as we’re building the budget.
4:46:15 So we look at the retirees because we get those from the retiree
4:46:20 office.
4:46:21 We know who is retiring.
4:46:22 But historically we should know what happened last year and the
4:46:25 year before.
4:46:25 Those would be averages based on history, and we have not looked
4:46:29 at those.
4:46:30 The changes in salaries can vary greatly, and it would be
4:46:35 difficult.
4:46:36 You would be taking averages of averages to make an estimate
4:46:40 with.
4:46:40 Okay.
4:46:41 Sorry for the question without the preparation.
4:46:43 I know you probably don’t have it, Dr. Thadde, but I’m going to
4:46:46 ask, do we know how many
4:46:47 people were terminated or quit – teachers terminated or quit
4:46:51 last year?
4:46:52 Do you have access to that?
4:46:55 Ms. Deskovich, I want to try to explain this another way.
4:47:03 It’s not as accurate calculation as when we pulled the actual
4:47:08 payroll.
4:47:09 But if you look at the Florida DOE average salaries for 2017-18,
4:47:15 you’ll see that our average salary
4:47:17 was $47,065.
4:47:20 If you look at 18-19 DOE, $46,316.
4:47:27 That is a difference of $759, I believe.
4:47:31 She took the calculator for me.
4:47:33 Sorry.
4:47:34 And in 17-18, there were 4,741 teachers.
4:47:39 If you multiply 4,741 times $759, you’re going to get about $3.5
4:47:48 million.
4:47:49 Just – that is the argument we said, and that is the number
4:47:54 almost to the dot right there,
4:47:57 $3.5 million.
4:47:58 That is a simple way of looking at it.
4:48:00 So once again, I took the 17-18 salary, $47,065.
4:48:06 I subtracted the 18-19 salary, $46,316.
4:48:11 Got 759.
4:48:13 Multiplied that by the number of teachers, 4,741.
4:48:17 And I got $3,551,000.
4:48:22 That’s not the case every year though, right?
4:48:27 That was the case from – from 16-17 to 17 – or excuse me, 17-18
4:48:33 to 18-19.
4:48:34 This is the case every year.
4:48:37 That – that 3.6 was the average that we figured for attrition.
4:48:43 Some years it’s higher, some years it could be less.
4:48:46 So for me, if – if that’s true, then that could cover the –
4:48:53 the 3.2 million in cuts
4:48:55 that I’m so worried about with your most recent proposal of what
4:48:58 we’re going to cut.
4:48:59 We wouldn’t have to cut anything.
4:49:00 It would just fall from the attrition.
4:49:02 So then we still have to – –
4:49:08 We still have to come up with the additional 6.3 million to meet
4:49:15 what the magistrate and union were asking.
4:49:19 That’s correct.
4:49:20 And Ms. Deskovich, if you look at the back of the handout I
4:49:23 provided,
4:49:23 it actually shows the schedule using both our verified
4:49:27 calculations of attrition of $1.4 million.
4:49:30 Dr. Mullins, excuse me.
4:49:31 I wanted to make sure VFT had a copy.
4:49:33 We provided it, yes.
4:49:34 Oh, okay.
4:49:35 Thank you.
4:49:36 Dr. Mullins.
4:49:37 Okay.
4:49:38 Versus the union’s calculation of $3.6 million, which we have
4:49:42 not been able to verify.
4:49:44 If you amateurize it over time, you’ll see that the fund balance
4:49:50 impact is $28.8 million
4:49:52 before the commitment to the raises met.
4:49:56 Dr. Mullins.
4:49:57 Dr. Mullins, why hasn’t the average teacher salary in Brevard
4:50:13 County from 2013 to 2018-19 increase more than a couple hundred
4:50:13 dollars, if what you’re saying is accurate?
4:50:13 How do you figure that?
4:50:14 Excuse me, Mr. Colucci.
4:50:14 I’m thinking it’s probably bad business to have the two parties
4:50:26 asking questions to each other.
4:50:30 You can address the chair and the board and we can work through
4:50:34 that route just so we can maintain decorum and order.
4:50:38 Did you want to ask me your question?
4:50:40 And we can straighten that out.
4:50:42 Once again, we’ll say that the district is using a flawed
4:50:46 budgeting process to cost out the raises.
4:50:50 And if you just look at our average salaries from 2013 to today,
4:50:56 you will see that it is a flawed budgeting process.
4:51:01 Our salaries have only increased a couple hundred dollars on the
4:51:05 average.
4:51:06 If what they are saying is correct, that number would be a
4:51:10 straight line and it is not.
4:51:13 Mr. Susan.
4:51:16 So for a point of clarification, when a teacher decides not to
4:51:19 work any longer inside the district, retirees follow a different
4:51:24 path than teachers that are going to another position in another
4:51:28 county.
4:51:28 So to say that we are only pulling data from retirees and not
4:51:33 pulling data from transfers from people who decline to work
4:51:37 anymore and all of that shows it significantly that that number
4:51:41 is lower than what it actually is.
4:51:42 And tell you a point to point that.
4:51:45 So, for example, when I worked for nine years and I was in the
4:51:49 position where I was ready to leave the district for another job,
4:51:54 I had to do so and make a decision on whether to retire or not.
4:51:58 And I did not.
4:51:59 By doing so sends a different trajectory on what you’re going to
4:52:02 do in the future because I didn’t know if I was ever going to
4:52:05 come back.
4:52:06 So to say that we only look at retirees shows that that unto
4:52:10 itself is a lower number, just so you know.
4:52:13 The next thing that I was going to ask, Dr. or Ms. Zerker, you
4:52:17 said that you look at the average new hire number for retirees.
4:52:22 Can you please provide that number?
4:52:23 I do not have it today, but I’d be happy to give it to the board.
4:52:28 Which year would you like it for?
4:52:29 We’ll do it this year if you have it.
4:52:33 For 18-19 is not calculated yet.
4:52:36 So 17-18.
4:52:37 So 17-18 I’d like to have the average new hire.
4:52:39 I’ll have it sent to the board.
4:52:40 Well, is that while we’re doing the proceeding or is that?
4:52:43 I will not be able to do that.
4:52:44 Okay.
4:52:45 So when we were doing those trend numbers as far as who’s
4:52:48 leaving and who’s retiring and everything over the last couple
4:52:51 of years, we see that the numbers have increased significantly.
4:52:54 Right?
4:52:55 Regardless of if it’s impact on, you know, the salaries or
4:52:59 wherever it is, we’re seeing an increase in the amount of people.
4:53:02 So by doing that, if we had the total number of individuals,
4:53:07 including the retirees and everybody else, we would have a way
4:53:12 to look at this number.
4:53:14 And by not looking at it, I have no idea how to actually
4:53:17 calculate it.
4:53:18 And if we’re sitting here and we’re trying to make a judgment
4:53:21 over how much money we have reoccurring and we’re only looking
4:53:24 at one population sector, I don’t understand how that’s possible.
4:53:27 So here’s a way to get around it.
4:53:29 Total number of teachers times average salary.
4:53:32 Do we both agree that that’s our salary payroll for the year?
4:53:35 Or is that wrong, Ms. Urker?
4:53:37 It depends on how you’ve calculated average salary.
4:53:44 If you’re doing it based off of actuals, yes.
4:53:47 So if we took the total number of teachers that we have minus
4:53:51 the total number of salary, we get a number, right?
4:53:55 And that number, if correct, should be decreasing according to
4:54:00 Mr. Colucci by 3 million per year.
4:54:02 And with you, it should be 1.4.
4:54:04 Is that correct?
4:54:06 My number is strictly based on retirees, not terminations.
4:54:10 I’m saying total number of payroll.
4:54:13 You only do payroll to report to the state off of retirees.
4:54:17 No, sir.
4:54:18 I don’t have a number for total payroll.
4:54:21 Mr. Susan, may I address your question?
4:54:23 Sure.
4:54:24 If you look in the blue tab on page six, this gives you your
4:54:30 amended budget, your April 2019 versus your April 2018.
4:54:37 If you look at instruction only and circle April 2019
4:54:42 instruction, it’s $280 million that was expended in April of
4:54:46 2019 for instruction.
4:54:47 Yep.
4:54:48 In April 2018, it was $284 million.
4:54:54 Yes.
4:54:55 There’s your laps.
4:54:56 Okay.
4:54:57 Next question.
4:54:58 And I would like Ms. Zerker, but if you can’t answer it, I would
4:55:04 like the union.
4:55:05 There’s a slide somewhere inside of here that – that’s not to
4:55:09 say disrespect to the district.
4:55:11 There’s a slide inside of here that said total number of
4:55:15 teachers, right?
4:55:16 Do you – can you provide that slide or can you give me the
4:55:19 total number of teachers over the last three years?
4:55:21 So –
4:55:25 I think they had something in theirs.
4:55:28 I cannot give it to you over the last three years.
4:55:31 It changes day to day.
4:55:33 Well, there’s a slide somewhere in here that shows if you guys
4:55:39 can find that.
4:55:40 Mr. Susan, it’s the slide in the BFT proposal that says the
4:55:48 theory –
4:55:49 Which tab?
4:55:51 Which tab, sir?
4:55:52 Yellow.
4:55:53 Yes, the yellow tab.
4:55:54 Okay.
4:55:55 The theory argues that raises our recurring expenses.
4:55:58 How far back into it?
4:56:00 Towards the end.
4:56:05 I would also just like to –
4:56:07 It’s slide 22.
4:56:08 – while you look for that, remind you that as we’re considering
4:56:14 these things, let’s not lose
4:56:17 sight on who the special magistrate agreed with.
4:56:20 The special magistrate agreed with our analysis, not with the
4:56:26 district analysis.
4:56:30 Ms. Deskovich, I have a question.
4:56:34 Ms. Campbell.
4:56:36 How – I know that part of what we’ve used – the district has
4:56:41 used to add additional dollars
4:56:43 to the recurring raises was a result of reducing our reserve
4:56:48 teacher units.
4:56:49 And so, when we look at the budgeted amount for instructional
4:56:54 salaries, at the beginning of the year, that included all those
4:56:59 people.
4:56:59 And so, can you remind me of the savings or the adjustment that’s
4:57:04 made?
4:57:05 And it may not show up yet because we haven’t actually paid that
4:57:08 out in the raises.
4:57:09 But what that added to what we can offer or how that changed the
4:57:14 budget?
4:57:15 We committed to eliminating 22 reserve units for $1.3 million.
4:57:22 Okay.
4:57:23 And so, those were included in that original budgeted amount,
4:57:26 correct?
4:57:26 Correct.
4:57:27 Okay.
4:57:28 And then, Ms. Zirker, would you – the BFT has talked about
4:57:40 extrapolating that amount.
4:57:43 Can you – how does that – just traditionally, and since we
4:57:49 still have three months left to go, or that was April.
4:57:51 So, we had May, June, and whatever.
4:57:52 Can you kind of explain any changes that might occur or your
4:57:57 thoughts on the extrapolation?
4:58:00 How –
4:58:01 Ms. Referencing back to the budget amendment?
4:58:03 Yes.
4:58:04 Ms. Yes.
4:58:05 Well, first off, on that page number six, just before the total
4:58:09 actual expenditures or the open purchase orders
4:58:12 that were still open as of April 30th for goods and services to
4:58:17 be – to be – that’s on page five,
4:58:22 to be spent before the end of the year.
4:58:25 And that’s $70 million.
4:58:28 So, the district has spent and committed to $351 million.
4:58:34 The actuals – teachers are paid from August through July.
4:58:38 So, as of April 30th, salaries through April are in there.
4:58:43 You still have three months of salaries to be added to the
4:58:47 actual number as well.
4:58:48 Ms. Okay.
4:58:49 So, what you’re saying is we add the actual – we can add the
4:58:52 obligated to the actuals?
4:58:53 Ms. Yes.
4:58:54 You should.
4:58:55 Ms. Okay.
4:58:56 Which is –
4:58:57 Ms. Yeah, my calculator.
4:58:58 Ms. Yeah.
4:58:59 Ms. What’s the total?
4:59:00 Ms. Yeah.
4:59:00 Ms. Remember, those two together are $351 million, and then you
4:59:10 have three months’ worth of salary.
4:59:12 It’s also important if you look at the CAFR they referenced back
4:59:16 under the gray tab, page 134.
4:59:18 The total instructional expenses, which is correct, Ms. Dawson
4:59:30 is correct, include salaries, benefits,
4:59:34 purchase services, supplies, materials, capital outlay, and
4:59:36 other expenditures.
4:59:37 June 30th, 2018 was almost $393 million, and $372 million for
4:59:48 2017, and $372 million for 2016.
4:59:54 Ms. Ms. Campbell, if I can, I want to ask questions on that same
5:00:00 line.
5:00:00 So, the total for the obligated and the actual, we said, was
5:00:04 roughly $351 million, yet our budget,
5:00:07 amended budget, is at $385 million.
5:00:09 I do understand that last year was $393 million.
5:00:12 Is it salaries that make up the difference between the $351
5:00:15 million and the $385 million?
5:00:17 I think that’s what we want to know, because that is what Ms. BFT
5:00:22 has said that there’s going
5:00:23 to be some lapse, obviously a lot of lapse dollars there.
5:00:25 Ms. You would need to add three months more of salaries to the $280
5:00:30 million?
5:00:30 Ms. Okay.
5:00:31 Ms. And then as the $70 million under obligated gets expended,
5:00:35 that would move over into the
5:00:36 actuals between now and the end of the year.
5:00:38 Ms. A month of salaries is what?
5:00:41 Ms. I don’t have it for just teachers today.
5:00:44 Okay.
5:00:45 Thank you, Ms. Zerker.
5:00:50 Sorry, Ms. Campbell, if you have more questions.
5:00:52 Ms. No, that’s fine.
5:00:53 Ms. I have another question, if I may.
5:00:59 Ms. Zerker, the union has suggested that we do not need an FEFP
5:01:06 reserve.
5:01:07 Can you explain why we do that?
5:01:09 And if we need it or if it’s something that we choose to do
5:01:12 optionally, why is that separate
5:01:14 from our traditional reserves?
5:01:16 Ms. The initial FEFP report coming from the legislature and the
5:01:21 conference report is based
5:01:22 on projected student enrollment.
5:01:23 As using 17-18 as an example, we were short statewide 35,000
5:01:34 students based on projections.
5:01:37 So, when we came to our second – our third calculation, the
5:01:41 first is the conference report.
5:01:43 The second using the same number of students adds our actual
5:01:47 property value.
5:01:48 The third follows student count for October.
5:01:52 We took a hit of over $5 million in December of last year from
5:01:57 the third count.
5:01:58 When we got to the fourth, we retrieved less than $1 million
5:02:03 about that.
5:02:04 We lost a large number, about 600 students that year that did
5:02:09 not come in in our projections.
5:02:10 The almost $5 million of lost revenue was taken from the reserve
5:02:17 for FEFP.
5:02:18 If we had not had that reserve, we would have needed to look at
5:02:23 cutting potentially supplies, positions,
5:02:26 and other expenditures at schools that are funded by that.
5:02:29 Why would that not come out of the state contingency reserve?
5:02:32 The board policy wants it at least three and a half percent.
5:02:37 And if I were to take it out of that, we would drop below policy.
5:02:41 So, if we had a larger – I think we’ve got a few issues here.
5:02:47 A couple of them being like the health insurance looking like it’s
5:02:51 a reserve when it doesn’t
5:02:52 really seem that it is.
5:02:53 So, I hope in the future as a board, we’re going to address and
5:02:56 give direction to get that
5:02:57 into our general budget somehow because the things that are
5:03:00 outstanding like that are very
5:03:02 confusing for the public, for us.
5:03:05 If it’s budgeted and we’re going to pay it, it needs to be in
5:03:07 the budget.
5:03:08 It’s not a savings.
5:03:09 But this issue is a savings.
5:03:14 But could it be in the regular contingency in the future and not
5:03:18 have an FEFP line item?
5:03:19 It would just be a higher level of contingency.
5:03:21 What do other districts do?
5:03:22 Is that how they manage it?
5:03:24 Or do most districts have an FEFP separate line item?
5:03:27 This is my fourth district in the state of Florida.
5:03:31 I have worked for a smaller district and two larger districts.
5:03:36 Most districts set aside a contingency such as your board
5:03:40 required contingency of at least
5:03:43 3%.
5:03:44 There are some districts who require 5% and that is not utilized
5:03:50 except in specific needs approved
5:03:52 by the board.
5:03:53 For other reserves such as the FEFP, they will establish a
5:03:58 separate FEFP reserve to maintain
5:04:02 covering those losses to avoid hurting schools when they occur.
5:04:08 Okay.
5:04:09 So it seems like it’s a common practice because we have to be
5:04:12 able to buffer.
5:04:13 We don’t know what’s going to happen with students coming and
5:04:16 going.
5:04:16 But we could have that in a general contingency.
5:04:19 We just have to be able to cover it if needed.
5:04:21 Okay.
5:04:22 Thank you.
5:04:23 Questions?
5:04:24 Getting back to the total number of teachers.
5:04:26 I couldn’t find it in here.
5:04:27 Could you just read it off the paper for me?
5:04:31 Mr. Susan, are you disputing BFT’s numbers with their 3.6
5:04:47 million?
5:04:50 No, I’m trying to get to a point in reduction of force.
5:04:56 Are you trying to – I want to understand what you’re doing.
5:04:58 Are you trying to prove or disprove their three-point attrition
5:05:02 value?
5:05:02 No, what I’m doing is I’m looking at the reoccurring revenue
5:05:06 that was created because
5:05:06 we supposedly cut positions in part.
5:05:09 And I want to make sure that those align with what we’re doing
5:05:13 now is all it is.
5:05:14 Got it.
5:05:15 Mr. Susan, what year are you looking for?
5:05:16 So I found it.
5:05:17 Thank you, Ms. Campbell.
5:05:18 Okay.
5:05:19 Thank you.
5:05:21 So we’re looking for 4,974 in ‘16-‘17, 4,957 in ‘17-‘18, and
5:05:25 then 4,926 in ‘18-‘19, correct?
5:05:28 And that includes all the members of the bargaining unit from
5:05:32 your payroll.
5:05:33 Okay.
5:05:34 And when you pull these numbers, Mr. Colucci, you’re pulling a
5:05:38 snapshot at a specific time inside
5:05:39 of our district, or is this where are you pulling this data from?
5:05:46 We requested every single payroll in all those years.
5:05:53 I’m not quite sure how he got the average number of teachers,
5:05:59 but we requested every single payroll.
5:06:01 Okay.
5:06:02 They actually report this data during the surveys, the Survey 2
5:06:09 and Survey 3.
5:06:10 And so Graham pulled all the data from all the different surveys
5:06:14 to come up with it.
5:06:15 But again, these numbers do fluctuate over time.
5:06:17 Yeah.
5:06:18 You can only look for trends, and you have a downward trend.
5:06:20 Right.
5:06:21 Which also reflects your 129 students that were not on your
5:06:25 Survey 3.
5:06:26 You wouldn’t obviously need teachers for students that did not
5:06:29 come to your schools.
5:06:30 But we did reduce our workforce per budget changes and stuff
5:06:36 like that, which are kind of consistent
5:06:37 with what’s inside here.
5:06:38 Thank you.
5:06:39 Ms. Belford?
5:06:40 No.
5:06:41 I’m good.
5:06:42 On that question, yeah, I’m good.
5:06:43 I’m good.
5:06:44 Did you have another question?
5:06:45 No.
5:06:46 Okay.
5:06:47 No.
5:06:48 Do you have questions?
5:06:49 No.
5:06:50 Okay.
5:06:51 Do you have questions?
5:06:52 No.
5:06:53 Okay.
5:06:54 No.
5:06:55 Do you have a question again, Mr. Susan?
5:06:56 Yeah.
5:06:57 Oh, Mr. Susan.
5:06:58 I have a quick question.
5:06:59 Ms. Zirker, I requested to try to get the financial data for
5:07:07 1920 that just came in for
5:07:11 the district, and I was told that I couldn’t get it because, you
5:07:15 know, it would have showed
5:07:16 favoritism or whatever it was last week.
5:07:18 So the thing is, is that I would like to run through that real
5:07:23 quick.
5:07:24 You’ve presented to us what you think is reoccurring going
5:07:28 forward in the next year,
5:07:30 and I’d like to hear that rundown.
5:07:32 Well, what I presented to you previously was a very initial
5:07:37 allocation, and tomorrow we’re
5:07:40 doing an actual budget workshop that will have revised numbers
5:07:43 in it.
5:07:43 So if you could give me the ones that you presented.
5:07:48 I did not bring them with me.
5:07:51 It left over approximately $9.5 million at the end of that
5:07:56 calculation.
5:07:57 The reoccurring, correct?
5:07:58 Yes, sir.
5:07:59 And that did not include our increase in discretionary millage,
5:08:04 and it did not include an increase
5:08:07 in our local –
5:08:08 That would be incorrect.
5:08:10 Increases in both our discretionary and required local effort
5:08:13 are included in the FEFP, which
5:08:16 was used to calculate the 9.5.
5:08:19 What is currently not in that number would be budget scrub
5:08:23 numbers, and our calculation of
5:08:26 the lapse salaries from retirees for the new year, and any other
5:08:31 scrubs that budget reductions
5:08:32 we decide – we propose to take.
5:08:34 So scrubs and reoccurring was not put in there.
5:08:38 But our required local effort of .748, and the others are inside
5:08:42 of there.
5:08:42 Yes.
5:08:43 They’re part of the FEFP.
5:08:44 Including in that 9.5.
5:08:45 Okay.
5:08:46 Yes.
5:08:47 Thank you.
5:08:48 Any board members have more questions?
5:08:55 Mr. Susan, do you have more questions?
5:08:56 No.
5:08:57 Do you need a minute?
5:08:58 No.
5:08:59 I’ll ask another question.
5:09:00 Go ahead.
5:09:01 Mrs. Erker, you may not have it with you, but on page 19 of your
5:09:08 Brevard Public Schools presentation
5:09:08 that you gave to the impasse, I had a quick question.
5:09:15 I was looking at the impact on available funds.
5:09:17 It’s slide three of three, slide number 19, and it goes over our
5:09:23 fiscal year total millage,
5:09:24 change in millage, and then taxable property value, of which you
5:09:26 showed a loss of revenue
5:09:27 from reduced millage of $39 million of reduced millage of $39
5:09:33 million.
5:09:34 That is the rollback rate that the legislature put into effect
5:09:42 going into 2016-17.
5:09:46 That is an estimate of the lost revenue if they had not rolled
5:09:50 back.
5:09:50 That is the rollback rate that the legislature put into effect
5:09:55 going into 2016-17.
5:09:57 That is an estimate of the lost revenue if they had not rolled
5:10:02 back.
5:10:02 But in actuality, if you actually multiply the total millage
5:10:08 that we received by the taxable
5:10:09 property value, it actually increases by $21 million.
5:10:13 I do not believe that is correct.
5:10:16 Well, if you want to take 15-16, you have a total millage of 7.377,
5:10:22 multiply that by taxable
5:10:23 property value, which is $33,184,902, you get a millage of $244,805,022.
5:10:34 By statute, we are only allowed to budget 96.5% of the
5:10:39 calculation you are referring to.
5:10:42 Sure.
5:10:43 But if you budget that 96% or 94% and you continue to multiply 6.966
5:10:49 times 35, 6.568 times 38,
5:10:55 6.299 times 42, you will see that that number increases.
5:10:59 So whether we budgeted for it or not, what I’m trying to ask you
5:11:03 is, did we receive an increase
5:11:05 as opposed to a revenue reduction in millage?
5:11:08 The increases we recognized were between a million to $2 million
5:11:13 each year.
5:11:14 They were very small.
5:11:16 We did not see the full calculation that you’re looking at.
5:11:20 And unfortunately, this district also does not have a history of
5:11:25 collecting 100% or even
5:11:28 the 96.5.
5:11:29 This is the first year in the last four years, we have not been
5:11:33 required to file an additional
5:11:34 millage based on not collecting enough revenues on ad valorem
5:11:39 taxes for the required local effort
5:11:41 in the previous year.
5:11:42 Sure.
5:11:43 And I hear you, but going through the trend, what I’m getting at
5:11:49 is, is that you presented
5:11:50 this as a $40 million loss in revenue from reduced millage.
5:11:54 Okay.
5:11:55 What I’m trying to prove to you is that the total millage times
5:11:59 the total property value,
5:12:01 and that includes our local millages, increased by five, by
5:12:07 another six, by $11 million.
5:12:09 And we don’t receive that, and we are not allowed to budget that
5:12:14 by statute.
5:12:15 Not even the required local effort?
5:12:17 I am only allowed to budget, even in the capital millage, 96.5%
5:12:21 of the calculation.
5:12:23 And that is because they know that the citizens don’t pay all
5:12:27 their taxes.
5:12:28 Is that a consistent 96 point?
5:12:31 Every district in the state does, is only allowed to budget 96.5%
5:12:37 of the calculation.
5:12:37 So if you’re only budgeting 96.5% every single year, and the
5:12:42 total number of revenue is increasing,
5:12:46 it should be reflective for those four years, correct?
5:12:48 And I did say we have seen a small increase each year between
5:12:52 one and $2 million.
5:12:53 Okay.
5:12:54 I’d be happy to send you the numbers.
5:12:56 No, no, no, no.
5:12:57 But you presented it as a $39 million loss in your presentation.
5:13:01 Potential.
5:13:02 I think this is a potential loss.
5:13:04 In other words, if they had not rolled it back, this is how much
5:13:08 more we would have gotten this year.
5:13:09 This is how much more we would have gotten this year.
5:13:11 Sure.
5:13:12 So over – if it had stayed at 7.377, we would have had $39
5:13:17 million more at this point.
5:13:19 And –
5:13:20 What this says is if in 16-17, they had not rolled back, it had
5:13:24 stayed 7.377,
5:13:26 we would have had $14 million more.
5:13:29 In 17-18, if they had left it at the 6.966, we would have had
5:13:35 almost 15 million more.
5:13:36 Sure.
5:13:37 I totally understand that, but it’s presented today’s loss of
5:13:40 revenue from reduced millage
5:13:42 when you just admitted that we actually increased our millage by
5:13:45 $1 to $2 million.
5:13:46 I’m indicating here that because of the action of the
5:13:49 legislature, it’s revenue we did not receive,
5:13:51 that if they had not done what they did, we could have –
5:13:54 But did we receive more money, Ms. Zirker?
5:13:56 $1 to $2 million.
5:13:57 Thank you.
5:13:58 Mr. Susan, I’d like to point you to page 20 of our brief.
5:14:03 On a related note, Ms. Zirker testified at length to the
5:14:07 legislature’s practice over the last several years
5:14:10 of cutting required local effort millage rates as property tax
5:14:14 values increase,
5:14:15 which she views as causing BPS to suffer a “loss” of local tax
5:14:21 receipts.
5:14:21 While it’s true that BPS would have received more funding had
5:14:24 the required local effort millage rates remained,
5:14:28 at the 15-16 levels, Ms. Zirker’s argument that it is tantamount
5:14:33 to BPS suffering a bona fide loss in funding is pure sufficient.
5:14:39 Ruminations on what might have been available to fund the union’s
5:14:43 proposal are irrelevant to the instant dispute
5:14:45 over what actually is available to the union’s proposal.
5:14:49 I have one final question.
5:14:57 You’ve already discussed this, but I just want to have it
5:15:00 clarified in my notes.
5:15:01 The government – is it the Government Accounting Organization?
5:15:06 Which government –
5:15:07 Government Finance Officers Association.
5:15:09 The government –
5:15:10 GFOA, Government Finance Officers Association.
5:15:12 They recommend having two months, correct?
5:15:16 Correct.
5:15:18 For all government entities, no matter their size, they
5:15:22 recommend two months of either revenues or expenditures to be
5:15:26 held in reserve.
5:15:27 And what is that number for us?
5:15:29 Ninety-one million dollars.
5:15:30 And what is our reserves?
5:15:33 Our total fund balance is 58, and our unassigned assigned is
5:15:39 approximately 49 million.
5:15:41 Can I do a follow-up?
5:15:42 Just give me a second.
5:15:43 Sure.
5:15:44 Ms. Serker, a couple of years ago we had hurricanes.
5:15:56 We were able to pay staff even though we evacuated and we were
5:16:03 gone, and some other things happened,
5:16:06 damages and such.
5:16:07 Does that come out of reserves?
5:16:08 Yes.
5:16:09 That falls to the bottom line and fund balance, yes.
5:16:13 If something happened to us here, and I know it’s unlikely, but
5:16:18 we all live in hurricane zones here.
5:16:20 Like that’s happened in Bay County, that level of a hurricane.
5:16:25 What – our district runs and maintains all of the – or most of
5:16:33 the shelters.
5:16:35 What funds do we use to run and maintain those?
5:16:38 What funds do we use to put the schools back in shape so they
5:16:41 can open?
5:16:42 I know we had schools that had floods throughout them during the
5:16:45 hurricane.
5:16:45 Is it bottom line funds?
5:16:47 Is it – is it our contingency reserve?
5:16:50 Is it regular reserve?
5:16:51 It comes out of fund balance, which at the end of the year, and
5:16:56 it’s important to note, we still have not been reimbursed by
5:17:01 FEMA for Hurricane Matthew sheltering costs.
5:17:02 Nor have we been reimbursed by the county for Hurricane Irma.
5:17:08 We are still waiting on complete facility repair costs from FEMA
5:17:13 for Hurricane Irma as well.
5:17:15 So I do take issue with the claim when you said we claim we’re
5:17:20 holding onto this money in case there’s an emergency.
5:17:24 I think we have legitimate concerns to have savings for
5:17:27 emergencies here in Brevard County.
5:17:29 Yeah.
5:17:30 And the state statute tells you to hold 3% for that purpose.
5:17:33 Is that what that money is?
5:17:35 That’s really what that’s for.
5:17:37 So the state has kind of overruled this Government Accounting
5:17:41 Standards Bureau that gives you a guideline.
5:17:43 That’s like your bank telling you you need to keep $5,000 in
5:17:46 there so you don’t have to pay fees.
5:17:48 It’s very similar.
5:17:49 Someone – you know, my uncle tells me all the time to take, you
5:17:51 know, more vitamin D.
5:17:52 It’s very similar to that.
5:17:54 They’re giving you advice.
5:17:55 So while it is good advice for a standard human to have 2 months
5:17:59 or 3 months or 6 months salary,
5:18:01 a governmental entity that receives checks twice a month from
5:18:05 the state based on property tax doesn’t have to worry about that
5:18:08 because as long as you have property to tax, you have available
5:18:12 income.
5:18:13 Bay County is another story.
5:18:15 They had a rider on to – in legislation to give them additional
5:18:19 emergency services funds to help them until the FEMA dollars
5:18:24 come through.
5:18:25 I’m assuming you also have property and casualty insurance.
5:18:28 I’ve seen it in your budget.
5:18:29 So I know you pay for it.
5:18:31 So you may have some short-term costs of paying a deductible or
5:18:35 paying the wages of the maintenance workers,
5:18:38 but that actually comes back through your insurance and it
5:18:41 actually comes from a different pot of money called capital outlay.
5:18:45 Capital outlay is not from the general fund.
5:18:48 They’re two separate pots of money.
5:18:50 So part of the problem that we have with funding is the state
5:18:54 has cut how much money you can collect for capital outlay from $2
5:18:58 per mil to $1.5 per mil.
5:19:00 We also have a loss of PICO dollars where they’ve transferred 90%
5:19:04 of the PICO dollars to all of our charter schools
5:19:08 and left the public schools with 10% of the dollars.
5:19:11 So there’s part of the problem.
5:19:13 So the state isn’t funding capital outlay correctly.
5:19:16 They aren’t reimbursing us correctly.
5:19:18 But you do have insurance for short-term emergency.
5:19:21 So while you do run the shelters, FEMA does start paying you
5:19:25 back immediately.
5:19:26 However, it does take a long time for the final checks to come
5:19:30 in.
5:19:30 The last check that was received in Polk was just under $2
5:19:33 million.
5:19:34 That was not, you know, the biggest pot of money.
5:19:36 So they do give you money up front and then they start doing
5:19:39 adjustments along the way.
5:19:41 So it’s important to make sure that you understand what is paid
5:19:45 for out of which fund.
5:19:46 Because you have seven different funds that you operate.
5:19:49 And you need to make sure that you’re looking at the appropriate
5:19:52 dollars when you’re talking about these things.
5:19:54 So yes, emergencies do happen.
5:19:56 You will need short-term operating.
5:19:58 However, you’re still going to get a check from the state.
5:20:01 They aren’t going to stop sending the money.
5:20:03 Because they also have over a billion dollars in reserves to
5:20:07 fund a case just like they did for Bay County,
5:20:10 who lost 5,000 students and I believe had to close at least
5:20:14 three schools because of loss of students.
5:20:16 Yes, I remember being in Tallahassee this year while the
5:20:19 residents of Bay County were begging for the state to help them
5:20:21 because they had gotten themselves in quite a situation.
5:20:24 Ms. Tescovich, if I may, I would add that Bay County’s fiscal
5:20:29 financial risk ratio,
5:20:31 if you look on the graph we provided, is actually above Brevard’s.
5:20:34 And they were requesting assistance from the state given the
5:20:38 situation they faced.
5:20:39 In addition, the reserve is also to be prepared for potential
5:20:43 inconsistencies in funding from the state.
5:20:45 Like we experienced this year.
5:20:48 If you recall from my presentation, going into 18-19 after the
5:20:52 new dollars provided against the mandates that were required,
5:20:55 we had an $8.3 million deficit.
5:20:58 Fortunately, we as a district had begun budget reductions and
5:21:02 cost savings well before we knew there was going to be such a
5:21:06 funding decrease from the state
5:21:08 that helped offset that, ultimately presenting the difficulties
5:21:12 we’re in right now.
5:21:13 But fortunately, we had done that.
5:21:15 Had that not been the case for Brevard, we would have faced an $8.3
5:21:18 million deficit and would be potentially looking at reserves to
5:21:24 cover that, at least in the short term.
5:21:25 Also, Ms. Tescovich, if I may, the statute that Ms. Dawson is
5:21:31 referring to is not a guideline of how much the fund balance
5:21:34 should be or the financial condition ratio.
5:21:38 It references the 3% in that if the school board falls below,
5:21:44 that is the measure where we begin to be penalized and have to
5:21:49 present to the state our plan to come above.
5:21:52 If we fall below 2%, they can come in and take us over.
5:21:56 Very similar to what they have done with Jefferson and Hamilton
5:22:00 County.
5:22:00 So, interpretation, and you may want to ask your attorney to
5:22:04 provide you that statute.
5:22:05 It’s not a guideline for what it should be, but a penalty if you
5:22:10 fall below it.
5:22:11 So, the 3% is an absolute minimum.
5:22:14 Yes.
5:22:15 Can I follow up?
5:22:16 Mr. Susan.
5:22:17 So, I wanted to – I did do some research as to Bay County and
5:22:20 us in the event of a storm because it seemed like part of the
5:22:23 conversation.
5:22:24 Currently, we pay $4.6 million for what’s known as a 100-year
5:22:28 storm insurance coverage.
5:22:30 It’s $120 million coverage.
5:22:33 So, we pay $4.6 million to cover $120.
5:22:36 Our deductible of that is $10 million.
5:22:39 So, in the event that we have a massive catastrophe hurricane
5:22:43 like what happened in Bay County, which they received $250
5:22:47 million in damage,
5:22:48 we would be covered after the $10 million for up to $120 million
5:22:52 for all perils.
5:22:53 Then, on top of that, the application to FEMA covers the rest of
5:22:57 what we have.
5:22:58 The lag to FEMA is one thing, but to say that we don’t have
5:23:02 coverage for a hurricane and that we have to have more because
5:23:06 of it,
5:23:06 our max out-of-pocket is $10 million, and when we hit that,
5:23:10 having $50 million, $60 million in here is not going to make a
5:23:13 difference.
5:23:13 The next thing that I wanted to make a point was is that the
5:23:18 insurance that we have comes out of our capital budget.
5:23:28 If we are to pay for extra facility renewal and everything else,
5:23:33 it comes out of our capital budget, not our operating.
5:23:35 And Ms. Zerker, can you tell me what the reserves in our capital
5:23:39 budget are?
5:23:40 $4 million.
5:23:42 Last time I checked, it was $108 million.
5:23:44 Those monies are sales tax monies that cannot be used for
5:23:48 repairs in a hurricane.
5:23:50 So, what I’m hearing you say is the $108 million that’s inside
5:23:54 of our capital reserves, only $4 million of it is ours for usage.
5:23:58 Is reserves, yes, reserved for emergencies.
5:23:59 So, $104 million is in there in the reserves from the sales tax.
5:24:08 I can’t say that was certain.
5:24:11 Ms. Zerker, we can transfer money from operation to capital
5:24:16 budget, correct, but not capital back to operation? Is that
5:24:20 correct?
5:24:20 Ms. Zerker, we do do transfers of capital to operations to buy
5:24:24 certain things that belong in functions other than facilities
5:24:28 and acquisition.
5:24:30 Based on the capital outlay rules, things that are considered
5:24:34 maintenance and repair can be spent with certain capital outlays,
5:24:39 such as the local capital improvement ad valorem, but not with
5:24:43 things such as sales tax.
5:24:45 Ms. Zerker, I was referencing more the comments over here about
5:24:51 not being able to take care of hurricane issues with any of the
5:24:55 operational budgets because it would have been capital dollars.
5:24:58 Are you following me?
5:25:00 Ms. I don’t necessarily agree with Ms. Dawson that 100% of the
5:25:04 repairs would be made with capital dollars.
5:25:07 We would have to free up from other projects.
5:25:10 What doesn’t get appropriated to other projects in the one fund
5:25:14 that we are allowed to use for that where there is significant
5:25:17 money is the ad valorem.
5:25:19 And we do set aside four to four and a half million for
5:25:23 emergency needs only and the rest gets appropriated out.
5:25:27 So depending on when the hurricane comes and what we’ve spent
5:25:30 and when we get the new money in would determine.
5:25:33 It’s also important to note ad valorem is not paid to this
5:25:36 district until December.
5:25:38 We don’t receive any of the ad valorem funds until December.
5:25:43 Most of our hurricanes have come in the fall.
5:25:45 Also, as far as FEMA payments go, have we – I’ve been under the
5:25:49 impression we haven’t received anything, but is she correct that
5:25:53 we’ve probably received some payments?
5:25:54 We haven’t received final payments from Irma and Matthew?
5:25:57 Ms. For Irma, we’ve not received anything at all for Irma.
5:26:01 We have received from Matthew the facility’s repair.
5:26:05 We have not received our sheltering.
5:26:08 I think we did receive about $100,000 from excess insurance.
5:26:14 Does sheltering include what we pay our employees to manage and
5:26:18 run these shelters?
5:26:19 Ms. Yes, it does.
5:26:20 So we haven’t received the funds yet to pay for the employees –
5:26:23 and it’s like double time or overtime at a minimum, right, of
5:26:26 our employees that work these shelters?
5:26:28 Ms. And also, if I may add, what we have chosen over the last
5:26:32 two hurricanes to go ahead and pay our employees while we were
5:26:36 unable to operate, that is not reimbursed by FEMA, insurance, or
5:26:42 the county.
5:26:43 That comes out of our money.
5:26:45 Ms. Thank you, Ms. Zucker.
5:26:47 I would just like to clarify that it’s my understanding that we
5:26:52 don’t pay teachers who volunteer to shelter in these schools.
5:26:57 I just want to clarify that’s administrative pay.
5:26:59 And I’d also like to state that, you know, Ms. Zucker’s lack of
5:27:04 preparedness for this hearing should not be the reason why you
5:27:08 vote in favor of the district’s proposal.
5:27:10 It should be quite the contrary.
5:27:11 Ms. It’s out of line.
5:27:12 Ms. Okay, board.
5:27:13 I think we’re at – anybody have any final questions before we
5:27:23 start to discuss and put a motion on the floor?
5:27:27 Ms. You good, ladies?
5:27:29 Okay.
5:27:30 Members of the board, it’s time I will ask for a motion.
5:27:40 In making a motion, I will ask that you be very specific so the
5:27:44 motion is clear.
5:27:45 As a courtesy, each side has been asked to provide you with
5:27:49 proposed motions for your consideration.
5:27:51 Do we have a motion on the floor?
5:27:53 Mr. Before we move to the motion, can I ask Ms. Envall the
5:27:58 proper procedure for what we’re about to do?
5:28:01 We’re about to come up with two different votes, correct?
5:28:06 Ms. You have two items.
5:28:08 Mr. Okay.
5:28:09 So we have to vote on both of those and have discussion on both
5:28:13 of those.
5:28:14 Ms. And just for the record, I believe we did receive the
5:28:19 superintendent’s proposed motion.
5:28:21 I don’t believe we received one from the union.
5:28:24 Mr. It’s page two in the PowerPoint.
5:28:29 Ms. Okay.
5:28:30 So the two things we need to vote on are the ESC supplement
5:28:33 separate from the salary.
5:28:35 Ms. So why don’t we – I will ask for a motion maybe on the ESC
5:28:41 supplement because I think –
5:28:43 Ms. – everybody agrees the latest proposal from each side is
5:28:48 the ESC supplement.
5:28:49 I think that’s an easy motion.
5:28:51 Can someone give me –
5:28:52 Mr. Move to approve.
5:28:53 Ms. You need to stay clear what the motion is exactly.
5:28:55 Mr. Move to approve to take the superintendent’s recommendation
5:28:59 that matches the teachers’ union
5:29:00 recommendation of the ESC supplement to bringing them up $835 to
5:29:05 the $1,000 supplement per year.
5:29:07 Is that pretty clear?
5:29:08 Ms. Is that a good motion, Ms. Envall?
5:29:10 Ms. Second.
5:29:11 Ms. Motion – motioned by Mr. Susan to raise the ESC supplement
5:29:17 to a reoccurring $1,000.
5:29:20 The current $165 plus an additional $835, which agrees with Dr.
5:29:27 Mullins and BFT.
5:29:28 Motioned by Mr. Susan.
5:29:30 Seconded by Ms. Belford.
5:29:32 All in favor?
5:29:33 We need a voice vote.
5:29:34 Do we need a voice vote, Pam?
5:29:37 Yeah, a voice vote.
5:29:38 All in favor?
5:29:39 Aye.
5:29:40 Any opposed?
5:29:41 Same sign.
5:29:42 Motion passes 5-0.
5:29:44 We are now on to needing a second motion or a first motion for
5:29:54 the second item.
5:29:57 I move that we accept the superintendent’s recommendation of a 2.3
5:30:07 recurring raise.
5:30:10 I don’t think that’s out of order.
5:30:11 I think we’re supposed to go towards the impasse, correct?
5:30:11 Ms. Envall?
5:30:12 So, you have two issues before you.
5:30:13 I mean, you have the .
5:30:14 We have to vote to either approve or not approve the impasse and
5:30:15 then move to it.
5:30:17 No.
5:30:19 You can make the – you now have to vote on the opposite side,
5:30:24 not the .
5:30:24 Ms. Campbell, please go forward with your motion then.
5:30:29 Okay.
5:30:30 I move that we approve the superintendent’s recommendation of a
5:30:33 2.3 or a 2.3 or a 2.4.
5:30:34 recurring raise as follows: $1,100 for teachers rated highly
5:30:39 effective and $825 for teachers
5:30:41 rated effective.
5:30:42 The $650 bonus for all teachers, including first-year teachers,
5:30:46 and the $500 retention
5:30:47 bonus for the first-year teachers who finished the school year
5:30:49 and finished the school year
5:30:50 and finished the school year and finished the school year and
5:30:53 finished the school year
5:30:55 and finished the school year.
5:30:56 Okay.
5:30:57 Thank you.
5:30:58 All right.
5:31:00 Thank you.
5:31:01 All right.
5:31:02 So, I’d like to start as part of this discussion by
5:31:16 acknowledging something that everybody in this room recognizes.
5:31:27 I think there’s some people outside of this room who don’t
5:31:30 believe this, but I believe that
5:31:31 everybody in this room recognizes the value that our teachers
5:31:35 bring to our organization,
5:31:37 to the public, to our children, to society, and there’s not a
5:31:40 person in this room who doesn’t
5:31:42 want to do more.
5:31:44 It’s my turn, and I’d like to finish.
5:31:50 I read through the magistrate’s decision, the whole entire thing.
5:31:53 I have had discussions with – sorry, Anthony – Mr. Colucci and
5:31:59 with the district about the
5:32:01 information that he received.
5:32:03 I – in looking through it, in looking through both the briefs,
5:32:08 I saw that, you know, the magistrate
5:32:10 did what he was supposed to do.
5:32:11 He made a decision based on the information that he had.
5:32:14 But as I looked through it, I realized there was some
5:32:17 information that he did not have.
5:32:19 And there was some – for example, when he looked at salaries
5:32:23 compared from district to district,
5:32:25 he was looking at start higher salaries.
5:32:28 For example, if you look at the chart that was provided to him,
5:32:32 and all this is on the – attached to the
5:32:34 agenda, it shows a five-year teacher making the same amount as a
5:32:38 beginning teacher with zero years experience.
5:32:40 Well, I know that because I’ve looked at – that’s what – that’s
5:32:44 our higher salaries, $39,226.
5:32:47 A five-year teacher coming into our district with, you know,
5:32:50 that much experience is making the same amount
5:32:52 as one with zero.
5:32:53 And then the 10 and then the 15 as well.
5:32:55 So, you know, it’s not a picture of what a teacher working in
5:32:58 our district for five years is making.
5:33:01 They’ll be making more than that.
5:33:02 And so, he didn’t – and the other thing that I – you know,
5:33:07 when I look at what he represented,
5:33:09 and his conclusions, and looking at his conclusions, he said
5:33:15 that the money was there based on choices.
5:33:18 At the – when the union was asking, I realize they’re changing
5:33:22 their – their request today,
5:33:23 and not asking for it to come out of reserve, but asking it for
5:33:26 it to come out of a suggested difference,
5:33:29 a suggested lapse.
5:33:31 But he did say that he thought it was in reserves based on
5:33:35 choices by the school board.
5:33:37 And – excuse me, I got – we got lots of stuff up here.
5:33:41 If I can quote – as we’ve seen this several times in the last
5:33:50 few weeks.
5:33:51 It is most respectfully submitted that this conservative fiscal
5:33:56 strategy described above of building into reserves,
5:33:59 results in the underutilization of funds generated at the
5:34:03 federal, state, and local level.
5:34:04 Funds that are intended to be applied toward the education of
5:34:07 the – of children.
5:34:08 Now, that would be true if it stayed in there.
5:34:12 If we stayed at the levels of $58 million or $53 million or
5:34:15 whichever one you want to start at,
5:34:17 if that was the case, it would absolutely be true.
5:34:20 But that money, the $53 million, $58 million, whichever number
5:34:24 you’re looking at,
5:34:25 is money that by the time we get to the first amendment, budget
5:34:30 amendment in September,
5:34:31 those are usually voted on in October or November, most of it is
5:34:36 gone.
5:34:37 Just looking back the last several years, it’s gone down to –
5:34:40 into the $27 to $37 million range.
5:34:45 Because it was money that was set aside to pay for things that
5:34:48 were ordered before June 30th and paid after.
5:34:50 Or grants for our – for our children, grants for our students
5:34:54 and for our teachers to use,
5:34:55 that the money was received before the end of the fiscal year,
5:34:58 but it was for money –
5:35:00 it was going to be paid out after the new fiscal year started.
5:35:03 It was used for reading coaches, which our teachers have asked
5:35:06 for.
5:35:06 I’ve had teachers in my house saying, “We need more of these.”
5:35:09 In fact, we’d love to have math coaches too.
5:35:11 For social workers, again, I’ve had teachers in my house say,
5:35:14 “We need more of these because we can’t meet ourselves the
5:35:17 emotional need –
5:35:18 mental emotional needs of our students.
5:35:20 We need these.”
5:35:21 It was meant for SROs, which I have heard our teachers say
5:35:24 across this district,
5:35:25 especially in the past year, we need more SROs.
5:35:27 And we don’t want to use unpaid employees.
5:35:30 We don’t want to use guardians.
5:35:31 We need SROs.
5:35:32 It’s used to pay for those things.
5:35:34 It’s used to pay for benefits for our teachers.
5:35:36 $3.1 million to defray the cost of health insurance premiums,
5:35:42 which I have heard our teachers say has been a hurt.
5:35:45 The increase that has happened has hurt.
5:35:48 It always hurts when our insurance rates increase.
5:35:52 And so that $3.1 million was to save that from happening.
5:35:55 I would hate to see that $3.1 million have to go back into the
5:35:59 budget and us have to either pass it on to employees
5:36:05 or find $3.1 million more worth of cuts that were going to have
5:36:09 to happen.
5:36:10 And the truth is whether it’s $3 million or $6 million in a
5:36:13 budget that is so lean that the union said we should pull it out
5:36:18 of reserves.
5:36:19 And we’ve had the gentleman present the report to the district
5:36:23 that it’s so lean that there’s not any room to give unless we
5:36:28 lose people.
5:36:29 And if we lose people in this district, we can take a look at
5:36:34 who it’s going to be.
5:36:36 Still my turn.
5:36:38 I hope we don’t have a time limit.
5:36:39 I’ll wrap this up quickly.
5:36:41 It’s going to be people like our strings program.
5:36:47 It’s going to be people like our media specialists.
5:36:49 Because they’re not in class size amendment and they’re not
5:36:52 required in other, you know, like PE teachers and things like
5:36:55 that.
5:36:55 Those are the people that we’re going to lose.
5:36:58 Those are also the things that make our district great.
5:37:01 It is not a one thing.
5:37:04 It is a complicated thing that makes our district great.
5:37:07 And the district has already made some changes this year.
5:37:10 Things like running the air conditioning less.
5:37:13 And there’s been public outcry.
5:37:15 The district has already made some changes about mowing the
5:37:18 grass less.
5:37:18 And there’s been public outcry.
5:37:20 And I agree.
5:37:22 We need to prioritize.
5:37:23 But I believe in looking at what we have and the district
5:37:28 continuing to look for cuts and continuing to look for a way to
5:37:32 increase to get to a 2.3% that we have done those things.
5:37:36 We want to talk about the differences in other counties.
5:37:39 Pasco and St. Lucie are well behind us.
5:37:42 So, yes.
5:37:43 I’m so glad to see that they have that increase.
5:37:45 Hang on.
5:37:50 I’m getting there.
5:37:51 Another thing I’d like to point out about the magistrate because
5:37:53 my thoughts are not written in – they’re written in random
5:37:56 order.
5:37:56 As I look through the magistrate’s opinion, although he does ask
5:38:00 the district to accept the BFT’s proposal, he does not talk
5:38:03 about funding moving forward.
5:38:06 Even though he suggests that we take it out of reserves.
5:38:09 He does not suggest how we would do that in the future.
5:38:12 And he also does not accept or at least acknowledge the attrition
5:38:16 theory put forward by BFT.
5:38:18 He never mentioned that anywhere in his ruling.
5:38:28 As far as the things that we’ve talked about today, as far as
5:38:31 teachers leaving throughout the middle of the year – and this
5:38:35 will be my final thought, I think –
5:38:38 every year teachers leave.
5:38:39 Every year teachers leave.
5:38:40 Not just this last year.
5:38:41 Every year teachers leave all throughout the year.
5:38:44 And every year they are replaced.
5:38:47 And I’m not sure about the 20,000, considering that our new hires
5:38:50 with zero experience to five years of experience, we’re getting
5:38:54 $39,226.
5:38:57 And our experienced teachers – I have heard myself – many are
5:39:01 making less than what is stated as the average of $46,000.
5:39:06 But every year they leave.
5:39:08 And if we – if the district was continually practicing, you
5:39:13 know, doing a bad practice, or as you – you mentioned, Mr. Colucci,
5:39:17 you –
5:39:17 I can’t remember the word that you used, but you – it was a bad
5:39:21 practice, is what you mentioned.
5:39:22 Then we – our fund balance would be continuing to grow,
5:39:25 continuing to grow, continuing to grow.
5:39:27 And by your own exhibit, you show it going like this.
5:39:30 It up and down, up and down.
5:39:31 It’s not gone from 6% to 9.6 or 8%.
5:39:34 It varies from year to year.
5:39:36 And so, if that practice was actually occurring in a negative
5:39:40 way, that amount would be continuing to grow.
5:39:41 And we would continue to see a fund balance growing year after
5:39:44 year after year.
5:39:45 And that is just not what has happened.
5:39:47 So, I’ll rest.
5:39:49 Thank you, Ms. Campbell.
5:39:51 Mr. Susan, do you have any final comments for discussion?
5:39:54 Yes.
5:39:55 I would – I would like to interject that our – the concern
5:39:59 over the $3.1 million being part of the budget in the event that
5:40:04 our insurance costs too much, I would respectfully like the
5:40:07 board to understand that we submit a form every year that
5:40:11 includes the run out for that entire insurance in the event that
5:40:16 we do have a catastrophe and we do have extra bills to pay,
5:40:16 which has been approved, and you heard from the CFO, that the 3.1
5:40:16 million
5:40:16 was not inside of there.
5:40:17 And I will tell you, in the event that it happens routinely
5:40:25 again, back in the days when I sat on the SIAC as a former
5:40:31 teacher, we did not have the two months run out that we were
5:40:31 supposed to ask, and the state had required us to send a letter
5:40:31 explaining that we had it in the general revenue fund or in our
5:40:31 reserve fund balance so that we could cover the cost in the
5:40:31 event that it happens.
5:40:31 So having run out on insurance or run out on claims is a
5:40:36 situation, but the fact that it actually can come out of the
5:40:42 other reserve balances and there’s a state catch for it, I think
5:40:49 it’s a moot point.
5:40:51 The next thing is, is that every year teachers leave and are
5:40:55 being replaced.
5:40:56 This is true, but we’ve been trending upwards in the numbers of
5:41:01 100 to 150 per year.
5:41:03 If you look back at some of the numbers that I requested two
5:41:06 years ago, we were roughly 150 to 2 to 250 to 3 to 350.
5:41:11 Now we’re in the range of 4 to 450.
5:41:13 That is not a number that is going down, and there’s a
5:41:16 significant reason that we have that.
5:41:19 And whether that’s whether that’s that they’re retiring, whether
5:41:22 that’s that we’re not paying them enough, there’s a serious
5:41:25 situation there that we need to address.
5:41:26 It is not flat.
5:41:28 It is going up and we need to address it.
5:41:30 Also, the fund balance going up or down.
5:41:33 Yeah, it’s been since 37 million back in 2011, all the way to $42
5:41:39 million under those two categories that they pointed out.
5:41:42 So we’ve been going up and down, up and down within that $5 to $10
5:41:46 million range, and we will continue to do that.
5:41:49 That also includes that we have our 8% in for any event that in
5:41:52 2023, we have to go back out to raise money.
5:41:55 I will tell you that we are trending up in local revenue.
5:41:59 We are trending up in our fund balance, which was described and
5:42:03 proved by our CFO, which said that we have, in her estimations,
5:42:08 600 and whatever thousand that we had, which was going up per
5:42:12 her recommendations.
5:42:13 I will tell you that I’m extremely concerned with the fact that
5:42:17 the district came to argue a point on reoccurring teacher lapse,
5:42:21 which has been kind of a thorn in my side since the beginning of
5:42:24 me being a teacher back in the day.
5:42:25 Because Dan Bennett used to say and argue, there’s a million
5:42:29 dollars in reoccurring, there’s a million dollars in reoccurring.
5:42:31 And he was told over and over again that there was never that
5:42:33 fund balance.
5:42:34 And then when Dr. Blackburn came, he said, oh, yeah, there is
5:42:38 one.
5:42:38 So when the district comes and says they only identify the
5:42:41 retirees, not the rest of the actual amount that are
5:42:44 significantly lower, then can’t even tell us how many retirees
5:42:47 are inside there.
5:42:48 And then even tell us what the numbers are, that is an extreme
5:42:52 concern of mine to argue when we’re so close to the district’s
5:42:56 actual proposal.
5:42:57 I will say this when we go to that, the, you know, the
5:43:02 nationwide accounting board, they are taking into account all of
5:43:06 the counties throughout the entire nation, California, New York,
5:43:11 all of them, all of the ones that have different revenue sources.
5:43:14 And here’s to the point, not schools. See, that’s what the same
5:43:19 recommendation for cities, for counties, for school boards.
5:43:23 And although it’s a good practice, we as a school district are
5:43:27 not providing parks, we’re changing people’s lives.
5:43:30 And because of that, this is a significant argument to make that
5:43:34 we are not the same as cities and counties, but we are the same
5:43:38 as schools.
5:43:39 And when we are making a difference, both for economic
5:43:42 development and for the future of our of our state and our
5:43:45 county, that is a reason that we need to take into consideration
5:43:48 not to be considered as the same as counties and cities.
5:43:52 I get back to my core mission.
5:44:03 Our core mission as individuals is to teach kids.
5:44:06 As a former teacher who had to leave this district because I had
5:44:09 to go get another job, I taught seven periods a day.
5:44:12 I coached, I coached a sport and I went and taught night school
5:44:16 all in the same day.
5:44:17 And I’ll tell you that was just to make close to $50,000.
5:44:20 It took it away from my family over and over again.
5:44:23 And that’s why I get fired up when I come to this disagreement
5:44:26 over funding balances and everything else.
5:44:29 I will tell you that it is the responsibility of the district.
5:44:32 It is to have a strong reserve balance.
5:44:35 That is no doubt 100% and we don’t want to fall behind that.
5:44:38 But when I don’t get straight answers as to how much we have in
5:44:42 reoccurring costs,
5:44:43 when the actual amount of teachers that did not fill the
5:44:46 positions, we had an extreme amount of vacancies,
5:44:49 which is not represented anywhere on our budgets.
5:44:52 I have extreme caution as to saying that we can’t get there and
5:44:55 that for the next 10 years we’re going to be in debt
5:44:58 and that we may have to start going out and doing all these
5:45:01 other things, which is the doom and gloom.
5:45:03 I will say that our core mission as educators and part of this
5:45:06 organization is to teach kids.
5:45:08 And there is nothing.
5:45:09 And there is statistic after statistic that proves that the
5:45:12 teachers are the ones.
5:45:13 The teachers are the ones inside those classrooms that have the
5:45:16 strongest and the most adverse effect on whether that kid learns
5:45:20 or that kid doesn’t.
5:45:21 So when we’re looking at our teachers and we’re saying that we
5:45:24 don’t have enough because we want to fund for the fund balance
5:45:27 for upcoming hurricanes or anything else, I understand that.
5:45:32 But when we’re sitting on close to $11 million in reoccurring
5:45:35 funding that’s next year and we’re sitting here looking at all
5:45:38 these resources that we possibly have,
5:45:39 that is, reoccurring balances, lapsed dollars, all of those
5:45:43 things, and our fund balance is going up,
5:45:45 I find it hard to believe that we cannot come up with the $2,300.
5:46:06 I will tell you this, I will tell you this, I applaud Dr. Mullins
5:46:12 for everything that he’s done.
5:46:14 I will.
5:46:15 I will tell you that from the heart of that man is absolutely
5:46:19 pure to this district.
5:46:21 I do.
5:46:23 I believe that.
5:46:24 I believe that every choice he makes and he stays up every night
5:46:28 is to try to figure this thing out.
5:46:30 And I think that it is our job as a board to help identify where
5:46:34 that can occur and help us get to where the magistrate’s
5:46:37 decision.
5:46:38 I am in favor of the magistrate’s decision not based on going
5:46:44 after our fund balance, but in return over what we can capture
5:46:49 from the bottom line and reoccurring dollars that we have for
5:46:54 next year.
5:46:54 That’s my stance.
5:46:55 Thank you.
5:46:55 Thank you, Mr. Susan.
5:46:56 Ms. Belford.
5:46:57 Thank you, Ms. Deskovich.
5:46:58 Mr. Susan, there is much that you said that I agree with.
5:47:13 I absolutely believe that it is important.
5:47:16 We are at a point where we need to do all we can to support our
5:47:19 teachers.
5:47:20 I have some concerns with some of the numbers that have been put
5:47:30 in front of us.
5:47:33 So the assumption was made, so we are looking at basically a
5:47:37 difference of about $6 million for this year to meet the magistrate’s
5:47:42 recommendation just for this year.
5:47:45 And then next year is a whole other issue.
5:47:50 We were told that we should – that we could likely count on
5:47:55 lapsed dollars truly being beyond the $1.4 million that the
5:48:00 district calculates.
5:48:01 We were told by Ms. Dawson that it probably is closer to $8 or $9
5:48:06 million.
5:48:07 But then we were told that if we look on page 6, our lapse is
5:48:11 the change between 2018 and 2019, which is about $3 million.
5:48:16 Which is about the difference between the initial non-recurring
5:48:22 and – I’m sorry – the initial recurring dollars offer from the
5:48:26 district and the latest recurring dollars offer from the
5:48:29 district.
5:48:30 And that part I think we are good on.
5:48:35 Where I struggle is with the additional $6 million in recurring
5:48:41 funds that we are being asked to find.
5:48:45 And when we look on the documentation, if we look in the book on
5:48:50 page 136 and 137, we are not seeing that those dollars, those
5:48:57 numbers – and this is in the BFT book – those numbers are not
5:49:04 supporting the significant decrease that is being claimed to
5:49:09 exist through attrition.
5:49:10 I also look back at the magistrate’s recommendation and, like Ms.
5:49:15 Campbell indicated, while there are – the magistrate supported
5:49:19 almost every argument that the union put forward with regard to
5:49:24 comparables and hours and all of that stuff.
5:49:27 The one element that he did not support and that I cannot find
5:49:31 any evidence to support in the numbers that they put in front of
5:49:35 us is the assumption on the attrition.
5:49:37 So, I understand the reasoning behind it, but I don’t see any
5:49:41 hard numbers to show us that that is actually what has been
5:49:44 happening with the total dollars.
5:49:46 I see the computations.
5:49:48 I see we’re plugging in this number and this number and this
5:49:51 number, and I get that.
5:49:52 But as far as seeing actual dollars show that attrition year
5:49:55 over year, I simply haven’t seen it.
5:49:57 And so that, for me, creates a real struggle with committing an
5:50:03 additional $6 million in recurring dollars to meet that
5:50:07 recommendation.
5:50:09 You mentioned the Dan Bennett fund and that, quite frankly, is
5:50:13 where the $1.4 million that the district is claiming his attrition
5:50:17 is coming from.
5:50:18 But if you look at what actually has fallen to the bottom line,
5:50:23 and in this instance, the $4.3 million in our fund balance, that
5:50:29 is closer to the attrition rate,
5:50:33 both referenced by district and also referenced by BFT of $3.6
5:50:38 million as being the difference between April 2017 and April
5:50:42 2018.
5:50:43 So I do see trends there to support about $3 million in attrition,
5:50:49 including the $1.4 million.
5:50:52 So I get your point that we’re only looking at retirees and not
5:50:56 the rest, but I think if we look at the trend there, we can see
5:50:59 that that’s just about where it is.
5:51:01 The $3.1 million that you talked about, Mr. Susan, on the health
5:51:06 insurance fund, I actually went back and watched the board
5:51:10 meeting
5:51:10 when that was presented and I was at the board meeting, but didn’t
5:51:15 recall because it was a long time ago, the details.
5:51:17 It was a workshop.
5:51:19 I actually went back and watched that and saw how that was
5:51:24 presented initially as part of the budgeting for that year.
5:51:28 And that $3.1 million is not in case we don’t have enough money
5:51:33 in our health insurance trust fund.
5:51:35 It is dollars that are closing the gap on our cost of employee
5:51:43 – somebody give me the word.
5:51:46 Insurance premiums.
5:51:47 Thank you.
5:51:48 Premiums.
5:51:49 Thank you.
5:51:50 So I think we – you know, we can mince numbers all day long.
5:51:54 The bottom line is I have zero question about the comparables,
5:52:00 about any of that, because I do feel like we need to do more for
5:52:05 our teachers in Brevard County.
5:52:06 I do feel like we need to make that a priority going forward.
5:52:13 And I think as Dr. Mullins mentioned in his brief, we are
5:52:19 prepared to go immediately to the table to address next year,
5:52:25 because we now know what dollars we are getting for next year.
5:52:30 But as much as I emotionally would like to approve $2,300 in
5:52:36 recurring costs for this year,
5:52:38 it’s simply not something that I can do.
5:52:41 I am happy to support the recommendation of the superintendent
5:52:45 and to say that we absolutely intend to go back to the table
5:52:50 right away
5:52:50 and do what we can to close that gap.
5:52:52 I believe that we actually have the ability to get you where you
5:52:57 want to be at the beginning of next school year,
5:52:59 if we can move expeditiously through bargaining.
5:53:04 And as I think all of you know, I have from the get-go supported
5:53:09 that we go forward with a millage.
5:53:11 I think as a community, we need to put as much effort into going
5:53:15 forward with a millage to support teacher salaries
5:53:18 as we have collectively put into the discussions that have taken
5:53:22 place on bargaining this year.
5:53:23 Because if you look at the districts that have passed millage,
5:53:27 they are able to do amazing things for their teachers.
5:53:30 And so my call would be, I hope that after having gone through
5:53:35 this difficult situation that we can get board support for that
5:53:39 movement as well.
5:53:40 But I cannot go on, I have to look at the trends of the dollars
5:53:49 as they have gone.
5:53:49 And at this point, I do not see any way other than dipping even
5:53:53 deeper into reserves to fund that 2300 recurring.
5:53:55 Thank you, Ms. Belford.
5:53:58 We’ll circle back around Mr. Susan.
5:54:00 Ms. McDougal.
5:54:01 I have always said that I get very concerned when we dip into
5:54:06 our savings for a raise and then the first year, not a problem.
5:54:13 But ongoing, how do we replenish that?
5:54:16 How does that come back up?
5:54:18 Do our teachers deserve more?
5:54:19 Absolutely.
5:54:20 There’s not one person in here who doesn’t deserve more.
5:54:23 How do we get there?
5:54:24 I certainly agree with Ms. Belford.
5:54:27 I’m sorry that the board before us did not decide to go out for
5:54:32 millage.
5:54:32 Because there would probably have been a good chance that we
5:54:34 would have gotten it.
5:54:35 And I do feel we need to go forward on that, looking at this
5:54:38 coming year.
5:54:39 I also agree that I think, knowing what we know now, that we
5:54:45 will have a better, we will be in a better place for this
5:54:49 upcoming school year.
5:54:53 Thank you, Ms. McDougal.
5:54:58 So, as many of you know, I usually take the extreme conservative
5:55:04 approach, especially with finances.
5:55:07 I’m most comfortable with the school district’s original
5:55:10 proposal.
5:55:11 And not because I don’t honor teachers or my children’s teachers
5:55:15 or my teachers that I had.
5:55:16 I adore so many of you.
5:55:18 I saw you walking in this morning as I was walking in, and it
5:55:21 was very difficult for me.
5:55:23 But because we have a job up here to protect this district long
5:55:31 term.
5:55:32 Shh.
5:55:33 Quiet.
5:55:34 And I have to do what I think protects the district long term.
5:55:40 I’m willing to move from my original very conservative numbers,
5:55:47 because I think there is some money found with Mr. Colucci’s
5:55:52 discussion on the attrition and what Mr. Susan supported.
5:55:58 Shh.
5:56:02 But I can’t go the whole way of the magistrate’s recommendation,
5:56:05 because I feel like it will put our district in peril.
5:56:09 Why hire a magistrate?
5:56:12 The question comes up often why other districts are able to do
5:56:16 so much more.
5:56:17 And one of the obvious reasons is local millage rates or local
5:56:22 taxes passed.
5:56:23 But if you looked throughout the entire book that was presented,
5:56:27 and nobody wants to discuss some things that were in those pages.
5:56:30 And one of the things that really jumped out at me when I looked
5:56:36 at those pages was Seminole County, who we were compared to
5:56:39 often.
5:56:39 Same size, same number of students, same number of employees,
5:56:44 roughly.
5:56:45 Why are they able to do so much more for their teachers?
5:56:47 Did anyone look at the number of schools Seminole County has?
5:56:51 They have 30 less schools.
5:56:56 Excuse me, we’ll have to clear the room.
5:56:58 Seminole County has 30 less schools.
5:57:03 The budget it takes for us to manage 30 more schools.
5:57:05 My point is, is as a community in Brevard County, we’re about to
5:57:09 have to make some really big choices in order to get you all to
5:57:13 where you need to be financially.
5:57:15 Does that mean closing 30 schools?
5:57:17 I sure hope not.
5:57:18 Does that mean increasing a millage rate?
5:57:20 We have to see if we can get there with the votes and the
5:57:23 community would have to vote on, we could get it on the ballot,
5:57:25 but then the community itself, the voters would have to approve
5:57:28 it.
5:57:28 There’s a lot of what ifs, but some big things have to change.
5:57:32 This nickel and diming and trying to guesstimate, I appreciate
5:57:36 your numbers BFT, but I’m super uncomfortable with, I don’t know
5:57:40 the exacts, but I feel like there’s 9 million.
5:57:42 I’m comfortable when Penny answers that.
5:57:44 Excuse me, Mr. Colucci.
5:57:46 You’ve had plenty of your time.
5:57:48 I’m not comfortable in my position putting our district at risk
5:57:53 without actual factual numbers.
5:57:56 We are told again, we are paid per student, ma’am, and that’s
5:58:11 exactly the problem.
5:58:12 We’re paid per student and yet we’re trying to fund 30 more
5:58:15 schools in Seminole County.
5:58:17 That is the reality.
5:58:19 The last thing I want to say is that we’re constantly told we’re
5:58:22 not putting teachers first.
5:58:24 We don’t have our priorities correct.
5:58:26 When you look at the things that we’re going to have to cut to
5:58:29 get to that 6 million, and I’m thankful Dr. Mullen said he
5:58:32 wouldn’t touch social workers.
5:58:33 When I was elected to this position, we had a student suicide
5:58:37 once a month for 12 months.
5:58:39 We took some of those funds and we got social workers in our
5:58:44 district.
5:58:45 How do I prioritize my favorite teacher’s pay over a student’s
5:58:51 life with social workers?
5:58:53 That’s what we’re faced with up here.
5:58:55 Really?
5:58:56 You’re going to laugh at that?
5:58:58 I’m, I’m most upset that our community has been torn apart over
5:59:07 this.
5:59:08 I’m most upset over the anger and the hostility towards Dr. Mullen,
5:59:11 who hasn’t even been in this position a year.
5:59:14 We put him in this position to protect this district.
5:59:17 He’s a former teacher in this own district, for goodness sakes.
5:59:20 And what I have seen done to him online has been unacceptable.
5:59:25 You guys are better than that, and we as a community are better
5:59:29 than that.
5:59:34 My vote will go with the superintendent’s second recommendation
5:59:38 and the motion made by Ms. Campbell.
5:59:42 Can I get some follow-up?
5:59:44 Mr. Susan.
5:59:46 So I just wanted to come back to some of the follow-up.
5:59:49 The $3.1 million from what I was explained was that it was to
5:59:55 cover the cost of from like the end of the year to beginning.
5:59:58 Can you explain a little bit more of that?
6:00:00 Because it was never identified as a fund to pay for the
6:00:03 reduction in benefits.
6:00:05 It was, it was always identified as because the payments were
6:00:09 wrong.
6:00:10 And that’s what I thought it was, if you can explain that.
6:00:12 Yeah.
6:00:13 So, so basically what it is, it, it, it, it is covering a
6:00:19 timeframe of the year in essence.
6:00:22 So the way that it was presented by Dr. Bingley at the workshop
6:00:25 was that the, our, our health insurance runs,
6:00:29 and I’m, I’m probably going to get the months mixed up at this
6:00:32 point.
6:00:32 I believe our health insurance runs January to December and our
6:00:35 budget runs July to June.
6:00:38 And so the $3.1 million was identified in the 2015 budget
6:00:46 planning process as filling the gap between the, the difference
6:00:53 between the budget year and the insurance year.
6:00:55 And so that was the premiums, a portion of the premiums that the
6:00:59 board was paying on behalf of the employees.
6:01:01 So in essence, what was said was if that was not paid, then we
6:01:07 would have to, in essence, charge the employees the $3.1 million
6:01:12 to make up the difference.
6:01:12 Because it was the board’s contribution to the premiums for the
6:01:15 employee health insurance.
6:01:16 And thank you for that, Ms. Belford.
6:01:19 And that’s what it was.
6:01:20 It was entirely intended to do from the beginning because during
6:01:23 that time was when we were flat with the reserves and we didn’t
6:01:26 have anywhere to tap into.
6:01:27 So he allotted during that year that we had the most money that
6:01:30 we gave to teachers and everything else, a 3.1 wallet caught
6:01:34 back up.
6:01:34 Currently we have enough in reserves to cover that time period.
6:01:39 So I would look at taking that 3.1 million dollars and putting
6:01:42 it somewhere else or putting it back into where it should be,
6:01:44 which is inside of the reserve trust fund.
6:01:46 Thank you for that explanation.
6:01:48 I truly mean it.
6:01:50 Where I would caution the board a little bit more is where we’re
6:01:55 saving and where we’re costing.
6:01:58 We’re saving $6 million by not going, of reoccurring dollars, by
6:02:03 not going with the union’s proposal.
6:02:06 But we are losing millions of dollars in experience inside of
6:02:12 our district.
6:02:13 And I wonder how many teachers are out there on the edge of
6:02:19 deciding that they’re going to leave or if they’re going to stay
6:02:25 based upon our decision.
6:02:26 And so what I get upset about is that we’re not taking into
6:02:29 consideration the achievement gap that we might create just by
6:02:33 trying to save that short amount of money that we have.
6:02:37 Our achievement numbers and the money that we receive as a
6:02:40 district come at a direct representation of how good our
6:02:43 teachers are.
6:02:44 And if we’re going to be losing very qualified teachers, which
6:02:48 our trend rate is up, the numbers that we lose as opposed to
6:02:51 what we’re spending are significantly more.
6:02:54 And I would caution the board that this decision, although it
6:02:57 doesn’t seem like it’s going to go in favor of the way that I
6:03:00 wanted.
6:03:00 I truly believe that we are making a mistake with not following
6:03:04 what we could do.
6:03:05 And I, again, say we don’t have to tap into reserves to do it.
6:03:09 We can use what numbers are not being shown, which you pointed
6:03:13 out, $1.5 million.
6:03:15 There’s other things inside of the budget that we can scrub.
6:03:18 We can get there.
6:03:19 And I’m just – I was concerned.
6:03:21 That’s all.
6:03:22 And I will not be voting for the superintendent’s recommendation.
6:03:25 Thank you, Mr. Susan.
6:03:35 I – it’s time to call it to vote.
6:03:40 Do I need to restate the motion?
6:03:42 You can’t vote online.
6:03:45 Oh, we can’t.
6:03:46 I don’t even – I’m not even logged into that.
6:03:48 I’m in the agenda for tomorrow.
6:03:49 Or you can vote, voice vote.
6:03:51 Yeah, we need to do a voice vote.
6:03:53 Okay.
6:03:54 The motion on the floor was made by Ms. Campbell and seconded by
6:04:00 Ms. Belford to support the
6:04:02 superintendent’s recommendation of a 2.3% recurring raise with $1,100
6:04:08 for highly effective teachers,
6:04:09 $825 for effective teachers, a $650 bonus for all 2018-2019
6:04:16 teachers, including first-year
6:04:18 teachers and a $500 retention bonus for any first-year teachers
6:04:22 who finished the school
6:04:23 year and are returning for the 2019-20 school year.
6:04:27 All in favor, voice vote please.
6:04:30 Aye.
6:04:32 Any opposed, same sign.
6:04:33 Nay.
6:04:34 Motion passes.
6:04:35 4-1.
6:04:36 This meeting is adjourned.
6:04:37 Thank you.