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>> we are opening our tuesday,

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january 17th board of education work session. It's a very special meeting.

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first, I'll entertain a motion to go from close session back into open [overlapping] session meeting.

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>> second. >> a motion and a second. All in favor?

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>> aye. >> the giacomo cannot be with us tonight and board members here.

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again, very special opportunity have in our county commissioners and their staff here with us tonight.

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we'll look at the agenda shortly, but first, the pledge of allegiance.

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>> >> thank you. We have a very brief agenda here tonight,

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but I want to attend a motion to approve the agenda as prepared.

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>> so move. >> second. >> all in favor?

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we can go right into our budget discussion. But before we do that, again, just want to acknowledge,

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it's really wonderful to have our commissioners and staff here with us tonight. This is something that historically

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the board of ed and the commissioners have done for many years. It's been long and back as I can remember and it's really outstanding opportunity to

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share and talk with each other and just continue to build

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this great relationship that has existed for so many years. There's a lot of places that don't have this relationship.

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this is really valued. For a small community, everybody knows everybody. But sometimes in small communities because fighting and there wasn't one time.

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I've heard lots of horror stories. I'm sure some of you heard as well, I think that's pretty accurate.

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but a long time since that's been a problem. In particular, we want to welcome all of you.

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we have two new commissioner which is tremendous for the county and have

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great people step up like that and for mr. Porter continue in office.

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again, he brings up that long-term veteran leadership.

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having that institutional knowledge stay with you. You guys just have to be thrilled to have the three of you there.

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the staff is saying our thrilled to have them there. They're really good people and is so great to have good people step up,

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not everybody gets that either. But again, welcome and we can go right into the agenda discussing the budget.

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>> certainly, I'm going to share this really quick. >> we're getting ready to do that,

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I guess I should ask the commissioner is if they want to say anything. >> yes, please. >> no, I'm good.

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thank you for the invite. I look forward to working with the board, like I'm first commissioner in awhile to have three students in the school system.

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so bring kids in the school system. I look forward to the continued positive relationship

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and doing good things for the county as a whole. Thank you.

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>> thank you for the opportunity and it's always good to see

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everybody had the opportunity to go around these numbers. Thank you.

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>> thanks for the invite. I look forward to working with you guys and just continue to grow caroline county school system may get better.

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better than it is. Thank you. >> thank you, gentleman.

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>> thank you all. I'll dive right into our budget discussion.

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as we go through our budget summary, aaron gordon, our cfo,

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will be here as well as we walked through if questions come up. I would say by all means as questions come up,

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please feel free to ask. As we walk through before we dive into the budget summary when you start to go into it,

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you'll notice that there are new revenue numbers on there this point in time.

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as mr. Fox news, we don't have that information from the state yet.

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we anticipate having that information by the end of this month. We should have preliminaries by the end of this month.

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yes, mr. Coleman, we're being told me you will have preliminaries by the end of the month this year.

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I don't think they're going to be arguing over whose formula is right. I think they got that straight after about four months of fighting last year.

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we should have some preliminary numbers by that point and we'll see what happens in the legislative session.

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again, we don't have the state revenue numbers as our commissioners I'm sure he's aware and I'm sure jeremy

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and dannie had briefed you guys on budget structure or funding or typically about 80 percent funding from the state,

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20 percent from the county. When you recognize the tax burden that

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the county has and the challenges that faces as many of us are residents.

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I think all of my staff, you're familiar all residents in the county, we all understand the challenges.

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we appreciate those challenges. But we also understand that a lot of the burden that are plates one is

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really the state revenue dollars really does have a big impact. We will know where we can go.

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with that said, without going into a big long deep dive, on the revenue side,

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I don't want to make any assumptions the big drivers for us that we will be looking at for state revenues.

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one is student enrollment. Our student enrollment is up this year,

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we're up about 90 kids on the street and year-to-year increase number.

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there is a component where the state has done a three-year average as well and look at that in terms of funding allocations,

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if you dropped 2020 out, I believe our three-year average is right around 56,

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57 in that ballpark. So no matter how you slice it, we're up kids, no matter which number you use, which is good.

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a lot of school systems are not up. But we have seen a bounce back.

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we're not at pre-covid numbers but we are working towards that,

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but we're not back to where we were pre-covid. Another factor in our state funding formula isn't

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just the raw student count is also the number of students who qualify for free with his name.

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caroline county, like everybody else, has been impacted by inflation and by

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other impacts of the pandemic and our free reason meal counts are up.

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for kids who are experiencing poverty is a pretty significantly across most of our schools.

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that has an impact on the state-level funding that we see coming

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in through the competent or compensatory education numbers.

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we know we'll see an increase there. We can predict a little bit those two items,

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what we can't predict will be the state of wealth data when it factors in.

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again, I don't want to make assumptions dannie, if the commissioners are aware of that, I won't go into it.

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>> we have about two this year. >> in a very simplistic version of

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the wealth actualization piece or the wealth formula piece.

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they basically take all 23 counties plus baltimore city.

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they rank them in a rank order of basically who became the wealthiest,

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or who became the least wealthiest in the last year. Sometimes it's beneficial to us and sometimes it's not.

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last year it was not. Caroline county has had less the fall than other counties when the pandemic hit.

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what we saw in the data, counties that were largely impacted by covid,

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shutdowns and other pieces like frederick county so huge increases in state revenue.

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they ended up, I believe number 1 in the state, for number 1 for the least wealthy in the last year.

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caroline stayed around 15, 16, which has a huge impact on increased state revenues.

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no matter how hard we tried to predict it over many years,

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pre me, pre dandy, pre aaron, it's just very hard to predict where

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we fall until we start getting preliminary numbers from the state, which makes it difficult with us sitting here with you tonight and not really know where

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state revenues do fault that projection. I just want to throw that out there to begin with.

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rachel, if you want to pull up the budget summary and what we're looking at as a school system,

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and I know what the commissioners have a paper copy in front of them. That's well, so what we've tried to do with our budget summary document

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is what's our cost of doing business moving forward,

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what we're doing this year, same services, continuing those rolling forward, or any commitments we've already made within

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our negotiated agreements to salary enhancements going forward have got to be rolled into that first top piece,

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which is costed them business to continue what we're doing as is.

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the number 1 item and it won't truly go through line by line and wear us out that way.

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but the biggest item on here is our salary increase that we agreed to

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through mediation last year when we were didn't pass with their teachers. The number that is up there we're already committed to for this year going into,

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but that number allowed us to meet the requirements of

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blueprint built by reaching the 10 percent salary increase over fy 19,

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which if we didn't come to it in november and mediation, we would have had to come to the right now and

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negotiations and we'd still be paying at least that for salary enhancement walking into the coming fiscal year.

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that is the first line and then we have to account for is making making us right there.

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what's not included in this also was any salary enhancements that will be coming through negotiations right now.

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we're currently in negotiations with our certificated, with our teaching staff and working through that process.

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that's why that number is blank at this point in time. As I said, we've just started negotiations there.

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we have a big increase their with salary piece that we know we need to hit.

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most of our other allegations are trying to adjust to increases that we've seen over the last couple of years,

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largely due to inflation, or have still probably impacted by inflation.

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but as we're renewing contracts, typically contracts go up in price.

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if we had a good rate when a contract pre-pandemic, and it was a multiyear contract now their trunk understandably.

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now, we're going to try to repeat that a little bit with contracts, which makes sense as those come in.

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something too small on to 6,000 and a lion. But like increase allocations for athletics,

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cost of maintaining our athletics programs we have is coming up,

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call for the officials are on up. We're trying to account for some of those things.

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cause the reconditioning for football, all of those pieces we just try to keep an eye on and adjust as we need to.

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>> the other big piece and we talked about this last year.

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I know it came up a little bit as a surprise to us in our budget process, just because the state was off so much in

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their employer share of retirement costs contribution. The state totally missed the mark last year on their projections,

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and they came to the locals and told us we had to make up the difference, so we ended up with a $330,000 increase in

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retirement cost later in the budget cycle than we want to and they told us we had to make the difference.

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we're projecting about a 200,000 right now as from what we're guessing based off what was not guessing.

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educated estimate that aaron's been part of to accommodate that for the buses,

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we have three buses coming out of life cycle. We're almost to the point budget-wise and I accredit

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milton in the work that he did previously to get our buses into

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a cycle where we're almost at the point where we will have to stop adding line items to

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increase that budget allotment where it will be a continuing reminding him that catches our buses as they roll off that cycle,

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so we won't have to keep increasing that line and make every year to catch a couple of other buses as they timeout.

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lastly, the health insurance rate, projected increase.

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we are self-insured. Right now, we're anticipating an eight percent health insurance rate increase.

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that can go up or down depending on our usage over the next several months.

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typically, it comes in higher and it comes down,

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and we hope it doesn't go the other direction, but right now they're telling us to project about

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an eight percent increase in health insurance. Our cost of doing business in terms of where we currently are,

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we're projecting about an additional 3.1 million dollars that we will need

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to have coming into the system in order to do the cost of doing business in the order of where we are right now.

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go back to what I've said, what I shared earlier with enrollments coming up for meals rate's going up.

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I don't know where the revenues will come in, but I'm not sitting here extremely worrying talking to you all

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tonight with what we're hearing about projections with the state funding formulas in general,

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with blueprint dollars coming in and some of the asks that I know maryland association of boards of ed in

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the public school superintendents association of maryland to sam had made for the governor to include in the budget,

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what the soon-to-be new governor will include in the budget, and some of those offsets will help the school systems meet these requirements.

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down in the bottom are requests. I didn't want to walk into our meeting tonight with the first list.

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the first list is the first step by all administrators,

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and it's what we've been talking about the previous board meetings, 12 classroom teaching positions,

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etc, so large list. Really is that wishlist starts and you start trying to

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drill it down to a more manageable, and what's possibly doable in state revenue that could be coming in,

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what's realistically to help offset some of this. The positions that are there, of course, as you said,

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salary enhancement is blank. We are seeing some good increase in students as we've talked about.

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one of those that was not projected based off with enrollment calculations, birth rates,

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those things, was we've had kids come back at denton elementary school at a faster clip than anticipated.

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denton, so one of our starters drop-offs, pre-pandemic and then it kept going during the pandemic,

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but they've had more kids come back in at a faster clip, which is a good thing. But it's called some full classrooms.

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we made some adjustments last year to try to rightsize or staffing based off of our enrollment,

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where it was, and where we saw it going. Frankly, at denton, it grew a little faster than everything we were seeing,

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so we know we need to look at an increased staffing position at denton elementary school.

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north caroline high school has got a large bubble of kids at it right now.

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lockerman has come back down. It's still full, but it's definitely come back down.

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their big bubble has moved on to north high. North high continues to grow as well.

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north caroline high school likely, will top 1,300 kids next year.

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as a comparison to kernel's 550. North high, three years ago was probably about 1,100,

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so a couple of about 200 kids over a couple of year period. At north high, they need additional staff to offset that.

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they're seeing class sizes 30 plus and some of their content areas. That's why you see the increase of

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the social studies teacher and then also math teacher at north caroline high school.

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some of the operations side things that are on here are things

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that we've been trying to get into the budget the last several years,

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and I'm going to try to get those to occur this year,

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if we can to support the effort. Our maintenance guys are doing an incredible job of maintaining our facilities.

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if we look at it in terms of staffing numbers for what's recommended versus the squared footage we have,

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we're off by probably eight or nine maintenance guys. Our guys are incredible.

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we're looking at the potential of adding a maintenance foreman,

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a working supervisor per se. Somebody who has experience,

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who can help us but again can also help manage the workflow of work orders and those pieces that are coming in.

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that's what we're looking at as of right now.

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>> I just want to mention that as retirements coming in, we will be looking to find savings in the budget if we can re-align or restructure.

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we will be looking for savings opportunities that are not on this list right here.

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>> we have a couple of retirements that have come in. A couple of retirements in central office level.

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that's giving us an opportunity to just relook at the allocation of resources and

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folks to see if there's a better way we can utilize our resources to try to offset some call somewhere else,

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so we'll continue to refine that. Our voluntary retirement incentive program window just closed literally over the weekend.

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we tend to not look at a lot of shifts until we know who

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is retiring at the end of the year or giving them early notice,

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so we'll start walking through that process within the next several weeks to try to get a better align on the savings,

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and whatsoever that we can hear.

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again, what I didn't share and I apologize for that. This obviously doesn't include anything on the capitalist side. This is the unrestricted operating budget for the school system.

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blueprint, sitting out there. The only thing that is causing consternation right now in the immediate future will be

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that we still have ways to go to get to the 60,000 starting salary for all teachers.

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we have three years to get there. We're about 18 percent off on the starting salary.

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howard will be having an agreement with our association, that in next year's negotiations,

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we will be sitting down to redo the teacher scales completely.

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if there's going to be some work that needs to be done to address the scale issues, next year is when we will be looking at that.

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but we'll look through whatever we can through negotiations to try to help close that gap,

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of course, with our staff. Nobody's got the answer to 60.

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those who were the closest school systems who were getting there are doing it through redoing their scales.

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they start erasing their starting salary, and they're closing the number of steps.

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they're just compressing their scale warm and raising from the bottom. It's how they're working to get closer to that.

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I think the closest might be somebody starting at 54 and change,

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might be the closest, but that's probably how most systems are going to

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end up getting there over the next couple of years. Right now that's our thinking.

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because I don't see a cash cow rolling them outside with

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the current model if they are truly worried is that happening to group of salaries it's not tenable.

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that's a nutshell terms at least are operating at some other things too,

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that definitely would love to discuss with you guys as we budget. But what questions or comments commissioner set up or you can staff?

198
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your increase in electric.

199
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we have the solar systems in there all. Yeah. Right, that's an increase even with solar?

200
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oh significant. So we buy and I don't know if the commissioners do it as well.

201
00:21:37,435 --> 00:21:40,360
you guys weren't as mac energy trust. That was back together. Okay. [overlapping] so between midway through fiscal year '22 till now,

202
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our kilowatt per hour rate increased 52.5 percent for the same usage of electricity.

203
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so we've, I'm sure commissioners have heard, [overlapping] energy.

204
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I've not told them about those. No. Parcels small enough, I can work with them.

205
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yeah. For us, that's close to a million dollar increase in electricity costs as at current usage rates in previous years.

206
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we've partnered with synergistic and energy management company that's working with us to reduce energy costs,

207
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reduce our energy demand, especially during unoccupied times,

208
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to try to offset that cost. Because the electricity were literally that

209
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52 percent increase on the kilowatt per hour was massive.

210
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we tried to absorb some of this year. We still have some adjustment to make in the budget.

211
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this is trying to get us to where we believe we will be with a reduced usage for energy margin.

212
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so for us, for the solar fields, mr. Horner,

213
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we generate savings on the solar fields if our electricity usage is low enough that it's putting electricity back in there.

214
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this is the first, at least first significant time

215
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is in our time of having solar fields up at least in the last few months with

216
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moving in this energy management work that we're actually seeing a return on investment in that regards with solar helps,

217
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but it hasn't helped blood to fall it would because we were still using our awful lot.

218
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would better after potential from her locker room and then elementary.

219
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has to be on delmarva. Their vote on delmarva. So we can sell them a megawatt and a half at 10 percent of kilowatt charge.

220
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it's okay to do it through that so we can talk about it. It's not enough that it's going to make this number more and this number is [inaudible]

221
00:23:46,360 --> 00:23:48,580
well, we we're looking this over provider who's looking for a number of large customers, right?

222
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yeah. We didn't push them your direction because I was under the impression you'd already offset everything you could offset.

223
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but maybe if you haven't, then we can do that. They need a megawatt and a half a day,

224
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I mean 10 percent off is only 35,000 bucks, but I mean, all of your increase,

225
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it's still a number. So just remember that while the kilowatt cost went up 51-52 percent,

226
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but it feels like more 52 percent, the distribution costs didn't. So I mean only one-half of the equation moves.

227
00:24:31,150 --> 00:24:31,150
our usage is low enough that well it's still good.

228
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shows it's not enough that I throw a bunch of flags that you guys we observed.

229
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we're just going to absorb it in, spread out a bunch that departments. Our power usage is nowhere near, but there is this.

230
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we're also very good at our buildings unoccupied.

231
00:24:53,680 --> 00:24:55,900
other than 911 center, don't really draw the 911 center is probably our single largest drone.

232
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[inaudible]

233
00:25:04,030 --> 00:25:07,105
they are. They do have dentin elementor again, logarithm do not have any solar panel.

234
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we wanted to add solar panels as long as our overdrive the poll, it doesn't really matter.

235
00:25:15,550 --> 00:25:15,550
but I think it's either two megawatts or in megawatt that they've got to get rid of.

236
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so what we're doing as a community solar program and toggle off through landfill with the intent of hedging what we

237
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believe is going to be the state's mandate that the county purchase a certain amount through

238
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green energy and no one ever wanted to get that done ahead of the mandate wasn't mandate comes in and there's

239
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no cost-savings at that point because it becomes mandated piece of you get it ahead of time.

240
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maybe if we take the whole thing together, we can negotiate that number down a little bit.

241
00:25:53,910 --> 00:25:56,740
so definitely worth further discussion. Early kim, can we find a half an hour early next week?

242
00:25:59,680 --> 00:25:59,680
[background] yeah.

243
00:26:05,610 --> 00:26:09,450
I need to grab danny for that as well. You're burning more power than anybody else.

244
00:26:12,745 --> 00:26:13,930
you keep the lights on. [laughter] [overlapping] and cold

245
00:26:17,455 --> 00:26:17,455
because if you turn that ac off.

246
00:26:26,200 --> 00:26:27,370
it'll be nice. They turned it off and it went to 75 and about half hour and I'm like, oh my god.

247
00:26:32,310 --> 00:26:35,279
we've done the alarms start going off in your bathroom. Server room starts flipping out right [overlapping]

248
00:26:41,500 --> 00:26:41,500
again about your the increase in retirement.

249
00:26:47,305 --> 00:26:47,305
so who is responsibility is it to calculate that?

250
00:26:51,865 --> 00:26:54,085
eric, you want to take that? She might give you a less colorful.

251
00:26:57,925 --> 00:27:00,730
so the maryland state retirement agency. We have a job.

252
00:27:02,305 --> 00:27:06,190
so there you go. How much were they offer the whole state? It was substantial.

253
00:27:08,290 --> 00:27:10,390
it was 20. Was 20-something. Our piece last year was [overlapping] little caroline county was off by $440,000.

254
00:27:17,380 --> 00:27:21,280
their expectation commissioner porter was a return on investment last year. I believe that their investments would have returned was at seven percent.

255
00:27:26,590 --> 00:27:29,500
they feel they're going to get seven percent. Six-and-a-half percent, seven percent. Or whatever is what they mean.

256
00:27:31,510 --> 00:27:34,750
[overlapping] what they did was they accepted it to us.

257
00:27:38,005 --> 00:27:41,485
they shifted it to the counties. They make a mistake and just shifted to us. That's exactly.

258
00:27:42,340 --> 00:27:43,555
they tried to hide it. We only did two-and-a-half or three points.

259
00:27:46,585 --> 00:27:49,540
it was on the down low. I mean, they kept it. Then once we've heard about it,

260
00:27:51,220 --> 00:27:55,210
we were trying to figure out how much money a man, and we didn't even find out until towards the end of

261
00:27:58,180 --> 00:28:01,795
session how much it impacted caroline county. Then we had to try to get that into the budget at that point in time.

262
00:28:05,425 --> 00:28:09,385
because them and they both did send letters. It was late at that point to hope the governor and do additional supplemental.

263
00:28:14,410 --> 00:28:17,080
we did send it while hoping, but it didn't. Appoint people who know what they're doing.

264
00:28:18,865 --> 00:28:21,990
yeah. Yeah. Yeah. Just scary part and they may have known exactly what they were doing.

265
00:28:26,380 --> 00:28:26,380
they overestimated and their fall back plan would be to pass it on to the counties.

266
00:28:31,735 --> 00:28:31,735
it wouldn't surprise me that people like them they're irresponsible.

267
00:28:38,020 --> 00:28:39,400
how it's always been now. [background]

268
00:28:44,950 --> 00:28:46,840
so that's, that's what that increases and we're anticipating they're not going to hit the mark the msu.

269
00:28:50,370 --> 00:28:50,370
so we're anticipating right now.

270
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I'm trying to true it up from last year, still recovering from the deficits that we had.

271
00:29:00,850 --> 00:29:00,850
it was tough to swallow it the last time.

272
00:29:09,570 --> 00:29:12,670
>> we've been actively pushing the counties, so the county manages its own system patching system,

273
00:29:14,425 --> 00:29:14,425
we've been actively pushing down our discount rate every year for the past five years.

274
00:29:21,205 --> 00:29:21,205
yeah. We've been lowering that expectation and then we've been increasing some of them,

275
00:29:26,995 --> 00:29:26,995
so we've been showing it worse than we hope.

276
00:29:32,245 --> 00:29:34,510
then we had a couple of years that were really bad, but we still kept pushing that discount rate down.

277
00:29:37,090 --> 00:29:37,090
the result of that is the county's pension systems are actually fully funded,

278
00:29:41,710 --> 00:29:41,710
which is unusual in the state of maryland.

279
00:29:45,960 --> 00:29:49,030
but if we took a hit like that on ours, that would be difficult,

280
00:29:54,670 --> 00:29:56,980
[laughter] I think I might be looking at it all wrong. [laughter]

281
00:29:58,930 --> 00:30:00,490
>> we should get on ours like that. [noise] but I have another question later on, but that's it.

282
00:30:08,830 --> 00:30:08,830
>> okay.

283
00:30:12,870 --> 00:30:12,870
>> do we have a teacher shortage right now in the county?

284
00:30:17,950 --> 00:30:17,950
>> we started the year with one position, I think, which was good.

285
00:30:23,105 --> 00:30:26,640
where we are now, we're sitting at nine. I would say the state has a critical teacher issue.

286
00:30:33,060 --> 00:30:36,070
what most counties are doing, you're hiring people on a conditional.

287
00:30:40,525 --> 00:30:42,610
folks with a college degree that we're helping to put through to get their teaching cert,

288
00:30:46,050 --> 00:30:46,050
there is a 100 percent legitimate shortage.

289
00:30:50,245 --> 00:30:50,245
it's every university will put out,

290
00:30:54,475 --> 00:30:55,690
I forget the exact number, but the number of kids that they have in their entire teacher ed program,

291
00:30:58,600 --> 00:31:02,455
I think before this year started was a 100 and something. The entire teacher ed program at a school that has a history of teaching students.

292
00:31:07,510 --> 00:31:07,510
they're not atypical of every other teacher colleges in the state.

293
00:31:14,890 --> 00:31:18,865
yes. We started well, we've got some things that will help us re-bounce on.

294
00:31:23,155 --> 00:31:26,020
but I think we're in probably a three, four year cycle with being tough.

295
00:31:30,050 --> 00:31:30,050
not all nurses were there and probably we did not see

296
00:31:36,040 --> 00:31:36,040
a high rate of folks announcing retirements which is helpful.

297
00:31:42,515 --> 00:31:44,420
one, a lot of firms, least of which is by seeing folks hanging around,

298
00:31:50,520 --> 00:31:50,520
it's there in teachers, it's there in admin.

299
00:31:54,595 --> 00:31:54,595
there's a worker shortage as you're seeing probably in your realm.

300
00:32:01,090 --> 00:32:01,090
the latest I saw was 62 percent of

301
00:32:05,950 --> 00:32:05,950
the working elderly population is engaged in work force which just makes it very real.

302
00:32:16,440 --> 00:32:16,440
>> the blueprint mandated raises may make a difference competing,

303
00:32:21,460 --> 00:32:25,315
not so much in maryland, but with other states. Maryland salary is pretty good.

304
00:32:28,105 --> 00:32:28,105
it might also encourage people who are long-term employees,

305
00:32:33,130 --> 00:32:35,560
teachers are willing to stick around to get that higher average margin measure that and they're

306
00:32:40,420 --> 00:32:40,420
like the other counties' staffing levels for teachers too are direct.

307
00:32:49,300 --> 00:32:51,640
>> do you historically seen a drop, have we seen a drop mid-year like this where we dropped down?

308
00:32:56,500 --> 00:33:00,085
>> in the last couple, yes. Last couple of years. >> varies with reasons all over the books.

309
00:33:03,505 --> 00:33:03,505
a little bit of burnout.

310
00:33:07,765 --> 00:33:09,280
there's probably just as many, if not more of those who've had kids and say I want to be home with my kids.

311
00:33:14,590 --> 00:33:14,590
it's probably just about as many of that if not all,

312
00:33:19,105 --> 00:33:19,105
try to understand. You can do it.

313
00:33:23,490 --> 00:33:23,490
it's the same but connected to rick's point a little bit.

314
00:33:28,570 --> 00:33:31,435
I was talking with some people in delaware, for what it's worth, those in school systems in delaware,

315
00:33:38,665 --> 00:33:39,730
in leadership positions, do have some concern as maryland does ramp up the blueprint because our settlers will

316
00:33:45,550 --> 00:33:48,610
increase while delaware doesn't have an influx coming from their state and mandates to increase,

317
00:33:52,150 --> 00:33:52,150
so I hate to say we will be robbing somewhere nearby.

318
00:33:58,320 --> 00:34:01,420
but it helps when you have a border for the state, where pay probably won't be comparable and worth maintaining.

319
00:34:05,125 --> 00:34:08,675
we'll probably end up seeing more delaware folks jump over. Delaware's had a better retirement

320
00:34:11,415 --> 00:34:11,415
historically and maryland will likely have better salaries.

321
00:34:17,735 --> 00:34:17,735
>> according to an absolute delaware lawsuit, was that?

322
00:34:22,410 --> 00:34:25,120
>> the way in which the schools are funded in delaware is very different than the way it is in maryland

323
00:34:27,190 --> 00:34:27,190
and there is a state lawsuit that's working its way through the system.

324
00:34:31,360 --> 00:34:34,415
if in fact the school systems win, the school systems will see a significant increase over the next 10 years in

325
00:34:39,330 --> 00:34:42,060
their revenue because they will have the ability to increase the property taxes rather dramatically in delaware.

326
00:34:45,875 --> 00:34:48,910
yes, that's the majority of the income, public property tax in delaware is the school tax.

327
00:34:51,415 --> 00:34:53,200
if in fact that happens, the school systems will in fact over

328
00:34:55,480 --> 00:34:58,150
the next 10 years see a significant increase in revenue, which I think would offset that.

329
00:35:00,820 --> 00:35:00,820
where are we? Are we competitive to our market?

330
00:35:05,125 --> 00:35:05,125
our market is not on a rumble and our market is over here, so are we competitive?

331
00:35:10,615 --> 00:35:13,855
>> as of the latest numbers we ran, which is based on msd does a salary study.

332
00:35:17,875 --> 00:35:20,830
they did ours prior to mediation finishing. If you pulled them off the website, it's not accurate.

333
00:35:23,200 --> 00:35:26,125
>> right. >> we've updated it internally since then. Our starting teacher salaries is third on the eastern shore, three overall.

334
00:35:31,135 --> 00:35:33,475
we are definitely competitive. The thing that we keep an eye on is are we competitive and can we stay competitive?

335
00:35:38,250 --> 00:35:38,250
we're three, but there's not a lot of gap between all of us.

336
00:35:43,000 --> 00:35:43,000
all it takes is another county you control, well,

337
00:35:47,860 --> 00:35:50,320
come and go last year it was six and half, seven percent increase because they got a huge influx of state dollars.

338
00:35:54,055 --> 00:35:55,810
they put a lot of it in salary. So they jumped quite a bit.

339
00:35:58,450 --> 00:36:02,305
where before they pretty much had been towards the bottom. >> there was one in two?

340
00:36:03,595 --> 00:36:06,625
>> one in two, I believe. Queen anne is up there. They they did not fare well in mediation and the other was,

341
00:36:11,530 --> 00:36:14,395
I think one may have jumped up there now with their increase. >> so joining the county.

342
00:36:16,585 --> 00:36:19,285
>> yeah, what's there's low, talbot, but we're neck and neck with dorchester, we're above.

343
00:36:24,400 --> 00:36:28,135
did we try to stay neck and neck with talbot and dorchester. It's nice if we can, but we know they've got deeper pockets.

344
00:36:31,675 --> 00:36:33,430
they've just been mandated through their mediation to have to dig into their deeper pockets.

345
00:36:40,560 --> 00:36:43,780
this helped us, the mediation on this. It definitely did.

346
00:36:46,060 --> 00:36:48,865
that was a good byproduct. Nobody liked it. We never want to end up there again because of

347
00:36:51,160 --> 00:36:53,500
the association, that great conversations. But something positive did come out of it by us being able to close the gap

348
00:36:57,280 --> 00:36:57,280
on the blueprint stuff already and to be able to get there.

349
00:37:01,915 --> 00:37:01,915
but it will be how we stay competitive going forward.

350
00:37:07,470 --> 00:37:07,470
>> can you elaborate on bus contracts?

351
00:37:11,935 --> 00:37:11,935
is that for llc or is that for employees, for the county?

352
00:37:16,795 --> 00:37:20,425
>> that'd be the llc contracts. We renewed our five-year agreement with our llc, september.

353
00:37:26,900 --> 00:37:27,930
>> yes. >> it was september. So we closed on it after our budget cycle.

354
00:37:31,880 --> 00:37:34,690
now we're trimming the budget up to match what we agreed to on our five-year agreement with our contractor.

355
00:37:37,600 --> 00:37:40,735
>> how many drivers are in the llc? >> thirteen.

356
00:37:42,960 --> 00:37:45,265
>> I was going to say 70. >> it's somewhere that mr. Mandel's I hear he's ill. Somewhere in the 30-70 range.

357
00:37:51,670 --> 00:37:54,625
is the number of drivers who are contract drivers. >> but that figure also represents the buses that we lease.

358
00:37:59,215 --> 00:37:59,215
we lease several buses from.

359
00:38:03,730 --> 00:38:06,520
it's not just the llc bus contractors, it's the lease payments for

360
00:38:09,900 --> 00:38:09,900
waterbed employees where we lease their buses from them instead of us earning the bus.

361
00:38:15,475 --> 00:38:17,440
>> have their driver status. [laughter] [overlapping]

362
00:38:23,020 --> 00:38:25,360
>> we're doing okay. We've been adding some. We've been able to add at a rate faster than we lose.

363
00:38:28,720 --> 00:38:31,450
cdl drivers are in high demand, but this year, again,

364
00:38:33,220 --> 00:38:34,465
I knock on wood. This year we're faring better than last year,

365
00:38:38,035 --> 00:38:38,035
so we're fairing better this year.

366
00:38:43,650 --> 00:38:43,650
>> some of this has to do with some of the drivers are employees of the county, correct?

367
00:38:49,420 --> 00:38:50,125
>> yes. >> we are leasing the buses back from them.

368
00:38:56,010 --> 00:38:56,010
>> because there's a maintenance factor and there's

369
00:39:00,100 --> 00:39:00,100
a whole formula that comes into play with that.

370
00:39:04,930 --> 00:39:04,930
>> so 1100 will still be done in our shop?

371
00:39:10,270 --> 00:39:11,080
>> yes. >> that's what you're still working.

372
00:39:14,640 --> 00:39:17,050
>> we've had to move some of our stuff out, not just because you can't do.

373
00:39:21,010 --> 00:39:21,010
[inaudible] it just takes the pressure off.

374
00:39:27,360 --> 00:39:27,360
it's a balancing act. What is the best use of resources?

375
00:39:32,320 --> 00:39:34,210
this seems to be working on our end. >> yes, it seems to be working on our end as well.

376
00:39:36,760 --> 00:39:38,440
we appreciate the partnership with it. >> yeah. >> it's good on both of this.

377
00:39:40,945 --> 00:39:40,945
I think the cost per hour of labor is a lot more reasonable doing it this way then?

378
00:39:47,965 --> 00:39:47,965
>> yes.

379
00:39:55,530 --> 00:39:55,530
>> any other questions on operating budget?

380
00:40:00,385 --> 00:40:00,385
>> I know don included on here our capital projects.

381
00:40:08,350 --> 00:40:08,350
the commissioners heard from us for a capital improvement plan.

382
00:40:13,105 --> 00:40:13,105
the number one project going there was vetalsberg roof replacement.

383
00:40:17,275 --> 00:40:19,390
fetals berg's in desperate need of a roof. It has been proved

384
00:40:21,700 --> 00:40:21,700
preliminarily by the iac to move forward as a group to be done this summer.

385
00:40:26,050 --> 00:40:26,050
we don't have the final totals on what will be the offset up there originally,

386
00:40:31,135 --> 00:40:31,135
or the federal per group is coming out at a price higher than the originally roof.

387
00:40:35,575 --> 00:40:35,575
the county sheriff looks to be somewhere in the neighborhood of 400.

388
00:40:40,315 --> 00:40:42,820
where originally it was 330. It's 400 and something is the county sheriff on the fetals berg roof project.

389
00:40:49,530 --> 00:40:53,035
again, we appreciate the commissioner's support in these things for us as a school system,

390
00:40:56,110 --> 00:40:59,700
as we talked about when we talk about the capital improvement plan, we're going to be in the roof business for several years.

391
00:41:02,995 --> 00:41:05,830
that's what our number one priority is. It's hard for us to chew off more than one roof a year.

392
00:41:09,900 --> 00:41:12,355
cost factor as well. If opportunities present themselves to be able to do more than one year,

393
00:41:16,570 --> 00:41:20,350
we happy to have conversations with you guys if that opportunity presents itself. Part of it for us comes into is how

394
00:41:22,810 --> 00:41:25,630
quickly contractors can get in to get the work done during the summer because roofs have to be done in the summer and it just

395
00:41:28,150 --> 00:41:30,915
comes down to how much can somebody get done. Our next couple after fetals berg north caroline high school.

396
00:41:36,355 --> 00:41:39,175
north caroline high school should be the next one. It's so large and has to be done probably in two segments.

397
00:41:43,840 --> 00:41:46,975
no way they'll get it done in one summer, so that'll probably be a two-parter and then kernel interests in

398
00:41:50,650 --> 00:41:50,650
middle school after that would be coming along next.

399
00:41:54,760 --> 00:41:54,760
>> we have a unique cash-flow, not a problem.

400
00:42:06,420 --> 00:42:06,420
not an offer, but it needs some information.

401
00:42:10,915 --> 00:42:10,915
if you could get your fedal berg with teed up,

402
00:42:16,825 --> 00:42:18,805
we'll get your next one too. Cause we may if the state will match it in the same timeline.

403
00:42:22,885 --> 00:42:26,590
you may have an unusual situation that requires us to spend a certain type of money in a certain window.

404
00:42:30,310 --> 00:42:33,460
I'm being very careful how I say that too. It's more than twice this number.

405
00:42:38,790 --> 00:42:38,790
while I don t know that the commissioners will necessarily want to do all of it for ruse.

406
00:42:44,365 --> 00:42:46,720
if we can knock two out and then be able to get some breathing room in out years where we may have some later years,

407
00:42:50,980 --> 00:42:54,475
two or three years out, that maybe beneficial to this. >> okay.

408
00:42:55,000 --> 00:42:57,460
>> but that's not a promise that's a if you can get those numbers and you get the state teed up,

409
00:43:00,070 --> 00:43:03,580
you may be able to knock out, you may also be able to get some. You get the same company that gets you the pricing and you might be able to do better.

410
00:43:09,220 --> 00:43:12,715
yeah, sometimes that works, sometimes and sometimes it doesn't. >> but now, I appreciate that and we can definitely look at that. [overlapping]

411
00:43:15,730 --> 00:43:15,730
>> it is something that we may have come available.

412
00:43:21,895 --> 00:43:25,750
>> okay. >> we may not, but we may. [laughter] >> no backup plan, right?

413
00:43:26,980 --> 00:43:29,740
>> yeah. No. I appreciate. >> a couple of our own county new projects and we have certain types of funding for that to be

414
00:43:33,130 --> 00:43:33,130
spent in certain windows or get in trouble for a variety of reasons.

415
00:43:39,445 --> 00:43:39,445
if in fact we have to shift things around,

416
00:43:44,430 --> 00:43:47,530
this might be an interesting way to sort of pay it forward in a way that would give us a break.

417
00:43:50,650 --> 00:43:54,520
you follow me, this is balancing act again. >> yeah.

418
00:43:55,150 --> 00:43:58,840
>> I don't want to say house of cards because that implies that something will fall down too hard. It's more about getting the right resource in the right place at the right time.

419
00:44:05,880 --> 00:44:05,880
>> what would our part of north caroline high school be roughly?

420
00:44:10,210 --> 00:44:12,040
>> depending on where the formula falls in, our initial rough estimate with the ise was close to 900,000.

421
00:44:16,450 --> 00:44:20,320
>> that's the entire breadths. >> that's for the entire. But again, keep in mind that even if it was the only route being done in the summer,

422
00:44:26,110 --> 00:44:28,255
it's unlikely they began to do the whole thing. They could do 80 percent,

423
00:44:30,115 --> 00:44:32,770
75 percent, possibly by layout of the building, but they could not tackle all hunger in about six weeks.

424
00:44:39,355 --> 00:44:41,485
>> kernel richardson. >> kernel middle roof

425
00:44:47,650 --> 00:44:47,650
just as an informational piece and again I don't want to make assumptions.

426
00:44:52,900 --> 00:44:55,660
when you renovate depends on the age of certain parts of the building for what money can be useful.

427
00:44:59,650 --> 00:44:59,650
published in middle school is the renovation was completed probably about 15 years ago.

428
00:45:06,960 --> 00:45:06,960
the roof was not old enough at the time.

429
00:45:11,380 --> 00:45:14,830
that's why it wasn't done with that renovation project. >> twenty years as a member in life?

430
00:45:17,125 --> 00:45:17,845
>> yeah. >> it's roughly 20. Twenty before they start kicking in.

431
00:45:21,640 --> 00:45:25,240
>> normally I hate stocking these things because it means 20 years later you going to have to do about the same time again, [laughter]

432
00:45:37,750 --> 00:45:37,750
[overlapping] somewhere.

433
00:45:41,950 --> 00:45:41,950
>> I'm not [inaudible] [laughter].

434
00:45:48,200 --> 00:45:50,780
>> normally we don't like to do this because it pushes us down the road then we have the same dual investment at the same time.

435
00:45:53,615 --> 00:45:53,615
this is an extremely unusual financial situation the county finds itself in.

436
00:45:57,740 --> 00:46:00,075
it's a good situation. Not a bad one. It's just we have several different pots of money that have funding timelines on them.

437
00:46:06,860 --> 00:46:06,860
if that's right, so nine for one and four for the others, one from three.

438
00:46:14,770 --> 00:46:14,770
we could in theory make that work in a single cycle.

439
00:46:21,250 --> 00:46:21,250
but it depends on how something else pencils out so I can't tell you for sure.

440
00:46:27,710 --> 00:46:27,710
what I will tell you is that I will not a year from now be able to say the same thing.

441
00:46:32,360 --> 00:46:32,360
>> I would assume the project has to be completed by then.

442
00:46:36,695 --> 00:46:36,695
>> no.

443
00:46:41,080 --> 00:46:43,400
>> obligated. >> [overlapping] obligated. >> I just wanted to make sure [overlapping]

444
00:46:50,060 --> 00:46:53,090
>> obligated and completed are two different when it comes to [overlapping]. >> what of the funding stream is a little more tighter on

445
00:46:56,720 --> 00:46:56,720
spending but the second that we are obligated.

446
00:47:01,825 --> 00:47:03,610
>> yeah, what he [laughter]. >> I had a feeling doing, that 20 years.

447
00:47:10,580 --> 00:47:12,230
who knows in 20 years, if one of those schools might need to be [inaudible]

448
00:47:15,770 --> 00:47:17,855
>> there is no need to be too concerned about that, you may need a whole another plan at that point.

449
00:47:22,690 --> 00:47:25,400
it's just normally we try and spread these leaves are trying to stack on top of each other like that.

450
00:47:28,415 --> 00:47:28,415
for fear that we would then be putting ourselves into a cycle of that requirement.

451
00:47:33,215 --> 00:47:35,780
because you definitely won't be able to go early assuming that the states continue in the same model.

452
00:47:38,330 --> 00:47:41,900
it might be able to go in your later, but you won't be able to do 19 years and so 20. >> now that we are noticing it,

453
00:47:43,250 --> 00:47:43,250
a lot of government buildings there used to be grocery stores so we

454
00:47:48,020 --> 00:47:48,020
presume the one other grocery stores will be turned into an elementary school or

455
00:47:52,910 --> 00:47:52,910
walmart [laughter] we're sitting in a former grocery store right here.

456
00:48:03,035 --> 00:48:03,770
>> we're in one. >> yeah, we're in one. Temporarily because still waiting for

457
00:48:07,460 --> 00:48:07,460
our rotation of the west bank to be finished.

458
00:48:16,450 --> 00:48:19,790
>> since we have all of our financial people here, I have a question about

459
00:48:23,760 --> 00:48:23,760
the school resource officer payroll system.

460
00:48:34,900 --> 00:48:38,690
because I know at some point we were trying to purlin run the school resource officers through the mortgage extension.

461
00:48:44,735 --> 00:48:48,500
now, how does it work for the school resource officers to get paid? How's that payroll handled?

462
00:48:52,040 --> 00:48:53,660
[laughter] >> all of the current srs are paid through the county.

463
00:48:57,755 --> 00:48:59,990
mann's thunder county hr. What we had turned to in our offices,

464
00:49:02,839 --> 00:49:02,839
bill the board of ed every quarter for the eight officers that we have.

465
00:49:08,495 --> 00:49:11,390
there are the three officers that were the original group that were located

466
00:49:13,550 --> 00:49:16,145
at the middle school or the two high schools, I believe. They get built at a 100 percent rate.

467
00:49:19,235 --> 00:49:22,895
whatever happens cost-wise for those three officers, they get a bill each quarter ventures up dollar for dollar we get back.

468
00:49:27,395 --> 00:49:27,395
when it comes to the five srs that were the additional elementary officers.

469
00:49:34,520 --> 00:49:34,520
the discussion of the original time was their budget or cost was

470
00:49:39,620 --> 00:49:39,620
estimated at around $400,000 and at the time,

471
00:49:44,900 --> 00:49:44,900
there was an inclination that if we added $400,000 to our at that time moe number who

472
00:49:53,960 --> 00:49:57,365
the board of ed could then in turn pay us back $400,000 and that would go towards our blueprint slash maintenance of effort.

473
00:50:05,200 --> 00:50:05,200
to this day, we still show a separate 400,000 dollar line item in the budget.

474
00:50:12,185 --> 00:50:13,940
but in the very end, you take that 415.6,

475
00:50:16,700 --> 00:50:18,185
that's the line above it, and you get the 16 million blueprint number that we have to.

476
00:50:24,190 --> 00:50:24,190
>> I've asked this question every chance I've

477
00:50:28,430 --> 00:50:28,430
gotten to every person that I can find to ask and I always get the same answer.

478
00:50:32,435 --> 00:50:32,435
can that be counted to our moe [inaudible]? Correct?

479
00:50:38,165 --> 00:50:41,350
>> yes. >> no matter how many times I ask they never have the answer. >> yeah, it was a gamble when we did it.

480
00:50:44,125 --> 00:50:46,480
>> it was a gamble. >> but my question is, is there a way to do it that would make it easier for everybody?

481
00:50:53,180 --> 00:50:53,180
>> aaron once had a similar conversation.

482
00:50:57,795 --> 00:50:57,795
not to get into the boring details with everyone but essentially,

483
00:51:01,810 --> 00:51:01,810
we're having to keep track of eight officers and two different departments separate and

484
00:51:07,700 --> 00:51:10,280
the sheriff's office working out every single purchase at

485
00:51:12,740 --> 00:51:15,965
a certain percentage to one department because it has three individuals, rather than buying tasers. It's cumbersome on us and the sheriff's office.

486
00:51:23,000 --> 00:51:23,000
>> what would be the downside of doing it,

487
00:51:29,600 --> 00:51:32,930
bringing it back so that you wouldn't have to go through would there be a downside to the board of education?

488
00:51:36,845 --> 00:51:36,845
>>the discussion that I would recommend or look to

489
00:51:41,990 --> 00:51:41,990
have is that we essentially figure out what that budgeted number would be.

490
00:51:47,285 --> 00:51:49,940
because essentially [overlapping]. >> from our perspective, it would make things easier because we know what

491
00:51:52,130 --> 00:51:52,130
the exact budgeted number would be and then we would just pay them an equal.

492
00:51:57,065 --> 00:51:58,460
>> quarter. >> or have you been involving?

493
00:52:01,400 --> 00:52:04,190
why wouldn't we run this through the sheriff's department? That's my point.

494
00:52:05,840 --> 00:52:05,840
>> essentially, they're still paying us for that service.

495
00:52:10,175 --> 00:52:10,175
they're paying us 400 plus probably close to $700,000 for those officers to be there.

496
00:52:17,750 --> 00:52:21,440
>> can we not undo that? I think it would be. >> we can because it's now factored into the moe number.

497
00:52:25,025 --> 00:52:28,850
it can't be undone. >> or what we could do is for example write a straight mou that this is the amount and this is the service,

498
00:52:32,630 --> 00:52:35,120
then it would take some of [overlapping] >> we would have to optimize every program.

499
00:52:36,875 --> 00:52:36,875
>> then I think that was my thought was if we declared $700,000,

500
00:52:41,090 --> 00:52:42,890
it's going to be the cost for those eight officers, divide that into four quarters and fill in that way.

501
00:52:47,495 --> 00:52:49,610
>> it just becomes a contractual service versus a direct reimbursement for it just pulls all of

502
00:52:51,950 --> 00:52:55,700
the unnecessary accounting out of it and then we just have to do it and show it on our end as the cost of the officers,

503
00:52:59,600 --> 00:53:02,980
just like we do every other officer. To do that, we would need to just enter into an mou between departments, right?

504
00:53:10,790 --> 00:53:12,470
>> yeah it'd probably a one-pager. >> what would happen if we pulled it back out and board then

505
00:53:16,055 --> 00:53:16,055
that 400,000 that's upon them and we would.

506
00:53:21,410 --> 00:53:21,410
>> we would continue to provide them the just using 23s numbers, the 16 million,

507
00:53:27,335 --> 00:53:29,405
but if we wanted to pull that back, we would then not fill them in accounting funded out of pocket for the 400.

508
00:53:36,395 --> 00:53:36,395
we would essentially lose 400,000 and we are out of them.

509
00:53:41,950 --> 00:53:41,950
>> once your started with the moe [overlapping].

510
00:53:46,460 --> 00:53:49,700
>> just again from another perspective to make sure I'm hearing basically what would happen. That would be a feel of an increase to the board of ed an

511
00:53:55,730 --> 00:53:55,730
moe of 400,000 not an increase to moe. True.

512
00:54:02,030 --> 00:54:05,630
>> true. >> just a different lens. >> correct.

513
00:54:06,560 --> 00:54:10,550
>> just making sure that we are okay. [overlapping] because I think that the dollars we'll stay the same. >> we'll stay the same. >> correct. Yes.

514
00:54:11,375 --> 00:54:11,375
>> we give the 400,000 to you I believe once a quarter,

515
00:54:15,905 --> 00:54:18,650
I think that's set up is 100,000 a quarter where your moe that 15.6 is coming each month divided into 12.

516
00:54:22,550 --> 00:54:22,550
we would just merge it into the once a month payment and make it easy going forward.

517
00:54:28,445 --> 00:54:28,445
>> let's put it on our agenda to talk about

518
00:54:34,400 --> 00:54:34,400
so that if there's an echo you that can make this simpler and easier for everybody.

519
00:54:40,190 --> 00:54:44,065
we can get steward to draft up something. Because it sounds really cumbersome to me and I don't have to do it,

520
00:54:49,280 --> 00:54:52,430
but if you can make this simpler let's do it. >> it's hard enough to be a three party so we

521
00:54:54,620 --> 00:54:58,325
would have to share [inaudible] the most likely, we need to also be a signatory to that. I still don't think it needs to be particularly complicated

522
00:55:00,440 --> 00:55:03,095
because we're already doing it, so it's very straight.

523
00:55:04,640 --> 00:55:07,685
>> we'll just memorialize it [overlapping]. >> pretty much. Yeah. >> the sheriff's office has something to do probably for the past two years.

524
00:55:11,720 --> 00:55:13,310
>> you voted up to me the other day. >> well, that makes sense. [laughter]

525
00:55:17,540 --> 00:55:20,060
>> how much are the funding do you have left? I know you were using some of that for the after-school program. Is that correct?

526
00:55:24,620 --> 00:55:28,190
>> yes. >> aaron could probably give a little bit more of an accurate. >> roughly I'd say little over 10 million.

527
00:55:32,930 --> 00:55:36,215
>> that's once it's gone, it's gone. What are your plans for the funding.

528
00:55:41,300 --> 00:55:44,705
[laughter] >> it's all across the board. We tried as best we could to keep it out of

529
00:55:48,290 --> 00:55:48,290
positions knowing that we're going to have to sustain and we'd have the funding cliff.

530
00:55:53,135 --> 00:55:53,135
but we did add some technology.

531
00:55:58,310 --> 00:56:00,110
we added three technology positions because with all the technology equipment that we were purchasing,

532
00:56:04,069 --> 00:56:06,380
we did a reading program, we did some math program,

533
00:56:09,620 --> 00:56:09,620
therapeutic support classrooms with nursing and wellness.

534
00:56:17,980 --> 00:56:21,170
>> big chunk in the tech. We've leased all of our laptops and desktops over

535
00:56:27,320 --> 00:56:27,320
time with [inaudible] and we're working through lease renewals to do anyway,

536
00:56:33,470 --> 00:56:35,860
but we're also working through shifting system in our middle and downgrades to chromebooks.

537
00:56:41,785 --> 00:56:41,785
more durable, a lot cheaper to maintain, a lot cheaper.

538
00:56:46,610 --> 00:56:50,510
they don't break as easy. With little kids it makes a huge difference. We're using funding to help offset some of those costs,

539
00:56:52,820 --> 00:56:55,550
we're trying to look at those things that we typically have are recurring operating that we need to get ahead on.

540
00:56:59,075 --> 00:56:59,075
we've got some hvac upgrades that we needed to do.

541
00:57:05,345 --> 00:57:05,345
we didn't realize the outspend for hvac upgrades can be.

542
00:57:09,580 --> 00:57:09,580
we've had some other upgrades that we've had to do in terms of place a lot of carpet.

543
00:57:16,580 --> 00:57:19,370
[overlapping] I'm trying to use it for onetime. [noise] one on capital or equipment needs or curriculum needs.

544
00:57:22,835 --> 00:57:25,880
the conversations have suddenly go around teachers, talking about our budget process.

545
00:57:28,835 --> 00:57:32,630
that's the reason why they have a lot of new curriculum coming out on math. [laughter] we have money to buy them.

546
00:57:35,405 --> 00:57:38,090
if not, caroline way would be we do one grade level at a time in 12 years to try to get all the way through it and then restart the cycle.

547
00:57:41,720 --> 00:57:43,790
we have the ability to jump ahead, so we're trying to use it on things like that as well.

548
00:57:46,325 --> 00:57:50,180
use the money for after-school programming, for summer programming. Offsetting costs there as well tutoring.

549
00:57:52,430 --> 00:57:53,150
>> tutoring also. >> a lot for tutoring and try to close the gap with some of our students.

550
00:57:59,510 --> 00:58:01,190
>> when does it have to be spent? >> is at 9, 24. September 24.

551
00:58:07,510 --> 00:58:07,510
>> I was just going to say there's a lot of chatter about possible extensions

552
00:58:13,174 --> 00:58:13,174
because I think everybody is [laughter] the funding cliff.

553
00:58:20,330 --> 00:58:20,330
we'll see how that pans out but we do have a plan to have it spent down by the.

554
00:58:27,340 --> 00:58:30,740
>> the 10 million, the items that you guys discuss, that's what that's obligated to go towards?

555
00:58:33,425 --> 00:58:33,650
>> yeah. >> it's okay, that's fine. Thank you.

556
00:58:37,540 --> 00:58:37,540
>> I noticed on last year's audit that there was

557
00:58:42,740 --> 00:58:42,740
a decrease in the opeb liability at $30 million.

558
00:58:47,780 --> 00:58:50,930
[laughter] that number jumped out. Could you explain that?

559
00:58:52,715 --> 00:58:56,660
>> sure. I don't know if everybody in this room knows what opeb is but other post employment benefits.

560
00:59:00,800 --> 00:59:03,830
the benefits that we paid to our retirees, be it medical, prescription drugs, dental, vision.

561
00:59:07,715 --> 00:59:10,310
we have an outside actuary, bolton, who actually comes in and determines what our opeb liability is and then as you know,

562
00:59:14,570 --> 00:59:17,450
our external auditors come in and do the testing behind them just to make sure it's everything is good to go.

563
00:59:21,380 --> 00:59:21,380
the main sensitivity factor in our opeb liability has been the market volatility.

564
00:59:28,955 --> 00:59:28,955
as you know the return on investment just keeps going up and down.

565
00:59:34,340 --> 00:59:36,545
the figure that you are looking at, our opeb liability actually went down by a little over 30 million.

566
00:59:40,055 --> 00:59:43,985
the year before it actually went up by about 60 million. For the same reason,

567
00:59:45,710 --> 00:59:45,710
it was just a matter of the rates changing.

568
00:59:50,494 --> 00:59:54,200
it's mainly just based on the long-term bond yields and what the current market rate is at that point in time.

569
00:59:58,220 --> 00:59:58,220
it's when the liability decreases when the rates rise.

570
01:00:07,450 --> 01:00:10,160
this is just me, I don't have a crystal ball, I'm not an actuary, but I think it's going to decrease again.

571
01:00:14,450 --> 01:00:17,840
but then at some point it's going to turn around and do the opposite. [laughter]

572
01:00:19,250 --> 01:00:19,250
>> this is follow up a little bit. The other thing I noticed was

573
01:00:23,300 --> 01:00:23,300
the fund balance and I know I talked to dr. Simmons a little bit about that.

574
01:00:28,400 --> 01:00:28,400
the planning, what you're planning or was it just to get ahead of a lot of state grants?

575
01:00:33,650 --> 01:00:33,650
>> yes, so our order recommends that our fund balance being closer to 10 percent.

576
01:00:39,290 --> 01:00:42,440
they want three months of operating expenses that we really should be a lot more higher than 10 percent.

577
01:00:44,990 --> 01:00:48,140
but 10 percent range our board policy that we had in setting the fund balance with the commissioners,

578
01:00:51,485 --> 01:00:52,730
probably back in '04,. I think that roughly when it was set up gave us a range

579
01:00:55,580 --> 01:00:58,490
of 1-10 percent with our fund balance. A big part of meeting our fund balance.

580
01:01:01,385 --> 01:01:04,850
obviously there's a savings account perspective other than that. It's good to have money for

581
01:01:06,560 --> 01:01:09,500
if we ever [inaudible] issue or an hvac issue, those sort of things. A bigger piece that's probably been

582
01:01:12,320 --> 01:01:15,380
one of the biggest change is and aaron could speak more to it. But 20-30 years ago,

583
01:01:18,995 --> 01:01:18,995
we got a lot of our state money upfront we don't have anymore.

584
01:01:23,510 --> 01:01:26,030
a lot of our grant money, a lot of our funding coming from the state.

585
01:01:28,160 --> 01:01:31,265
we get notice of grant awards or we get basically you can go ahead and start spending

586
01:01:33,200 --> 01:01:34,985
but you don't have the cash flow at back it up. We have to spend and then submit and get it in

587
01:01:38,900 --> 01:01:38,900
arrears and sometimes it takes way longer than it should [overlapping].

588
01:01:43,610 --> 01:01:44,870
>> it takes years sometimes >> but usually it's at least a couple of months behind in the reimbursement.

589
01:01:48,485 --> 01:01:48,485
we've got to have cash flow and our fund balance really provides us that cash flow.

590
01:01:55,760 --> 01:01:59,720
when folks see our fund balance of being six million in that ballpark area for $100 million budget, six percent.

591
01:02:06,170 --> 01:02:10,145
we're hitting that for cash flow. We've had some moments where we've really needed it.

592
01:02:13,940 --> 01:02:16,730
leads grant that msb offered, we were able to use some of that money to give stipends to employees.

593
01:02:21,365 --> 01:02:24,770
it's one-time money so we can't tie them to salaries so you try to offset it by giving everybody a retention bonus.

594
01:02:28,505 --> 01:02:30,620
well, we had a cash flow that out and it'll be 60 days before we see the reimbursement back.

595
01:02:34,250 --> 01:02:36,645
when you give every employee 1,500 bucks, roughly 1,000 employees is 1,500 bucks.

596
01:02:39,805 --> 01:02:39,805
eats it up real fast out of your cash flow and then we've got to six weeks,

597
01:02:44,110 --> 01:02:46,275
60 days to get that back in. That's just one example of why that fund balance is necessary.

598
01:02:51,440 --> 01:02:51,440
why each year we look at it or it looks at it and all of us do

599
01:02:55,490 --> 01:02:59,420
to keep an eye on if we have unspent funds. There are things we want to use unspent funds for and try to get ahead and typically

600
01:03:02,990 --> 01:03:04,130
some capital gains or some one-time expenses and we have the equipment cost to get those in,

601
01:03:07,785 --> 01:03:07,785
but we also don't want to spend the entire bit there.

602
01:03:12,910 --> 01:03:16,390
we want to hold onto and start putting a little bit more back in the rainy day fund. Typically, we're in the ballpark of a couple of hundred grand going in it.

603
01:03:20,615 --> 01:03:24,080
we had some years due to covid influx of money where we can allocate more to it than we have.

604
01:03:27,560 --> 01:03:30,890
but I think it's being fiscally smart to take advantage of, but at that time to try to build those reserves back up.

605
01:03:35,070 --> 01:03:37,780
because again, as our budget grows, the amount of money via reserve it's going to grow as well.

606
01:03:45,310 --> 01:03:45,310
number one question [overlapping] when it comes out is because it's,

607
01:03:49,400 --> 01:03:52,355
well, you guys were sitting on this much money can't you just give it? >> we do the same thing.

608
01:03:53,540 --> 01:03:56,105
>> yeah. >> I'm glad to say that. >> you can but the same thing that we'd recommend everybody in here.

609
01:04:00,035 --> 01:04:03,620
we all want to have a savings because for various reasons, but we're just like a home budget,

610
01:04:07,430 --> 01:04:09,760
just a lot more zeros. >> we talked about fund balance a lot.

611
01:04:12,470 --> 01:04:15,030
>> yeah. >> any other questions or concerns?

612
01:04:20,580 --> 01:04:20,580
>> only one other thing I'd like to share with you guys before you go.

613
01:04:25,540 --> 01:04:27,700
before we close up the meeting if anybody else on the board has anything to share as well.

614
01:04:30,340 --> 01:04:33,280
caroline county public schools is going to be partnering with some other school systems around the state.

615
01:04:35,560 --> 01:04:35,560
we're meeting later this week around the report that msde put out back in october.

616
01:04:42,340 --> 01:04:43,720
they were required to do this through legislation that was written I think a year or two ago,

617
01:04:47,170 --> 01:04:47,170
that looks at the way that poverty rates are calculated in school systems.

618
01:04:51,985 --> 01:04:51,985
moving from the paper print reviews forms to doing it by census data.

619
01:04:56,755 --> 01:04:59,140
when you look at census data, what's the amount of poverty within a census area would

620
01:05:03,280 --> 01:05:05,080
indicate the level of poverty in the county which would then have a direct impact on funds.

621
01:05:07,780 --> 01:05:07,780
then school systems would get through compensatory through the funds data.

622
01:05:12,340 --> 01:05:12,340
we were one of the counties that msde picked when they ran their sample study.

623
01:05:17,455 --> 01:05:21,130
when they did their study, caroline was they one they picked. There were a couple of other counties. Strategic they picked us,

624
01:05:22,690 --> 01:05:22,690
partly probably because when they created their census block map,

625
01:05:27,985 --> 01:05:30,910
we were the only county in the state at the time that had no census tracks that had higher income.

626
01:05:34,225 --> 01:05:37,480
higher income was denoted by being higher than average combined family income of greater than 88,000 dollars.

627
01:05:40,975 --> 01:05:40,975
we were the only jurisdiction in the state that had nobody in there.

628
01:05:47,605 --> 01:05:47,605
they've run some modeling on how funding should be allocated.

629
01:05:52,450 --> 01:05:54,490
it's predicated on the notion that if you have more poor people living in an area even if you have a wealthy person there,

630
01:05:57,760 --> 01:06:00,880
everybody in that area still tends to have less resources. If you have a lot of wealthy people and one poor person there,

631
01:06:04,660 --> 01:06:06,850
they still have access to a lot more resources than one poor person does because of living around a lot more wealth.

632
01:06:09,910 --> 01:06:09,910
it's the notion. What they put out and what we're hearing is going to be

633
01:06:15,220 --> 01:06:19,180
an msde priority for this year that they're going to be advocating for in indianapolis or [inaudible] in the past they were in [inaudible],

634
01:06:23,380 --> 01:06:23,380
but they are going to be putting out an effort to try to get into

635
01:06:27,850 --> 01:06:30,550
legislation changing the compact formula for how school systems are funded for kids living in poverty.

636
01:06:34,390 --> 01:06:36,670
why does that matter to us? Because the model they're predicting and

637
01:06:38,860 --> 01:06:41,080
they want to put in place would be an increase in cap aid to us of more than 14 million dollars of what we currently get from the state.

638
01:06:48,390 --> 01:06:48,390
that in itself has me saying I need to be there with other counties,

639
01:06:55,300 --> 01:06:55,300
we need to be there with other counties arguing for this.

640
01:06:59,305 --> 01:07:02,980
if it's going to move forward if we're looking to change compensatory aid, this is the way to do it that really helps.

641
01:07:05,545 --> 01:07:05,545
what I would argue with the effort that's going on.

642
01:07:12,420 --> 01:07:12,420
finally, in conversation people are realizing the uniqueness of caroline county in

643
01:07:18,130 --> 01:07:18,130
terms of the physical situation in which you all know about,

644
01:07:23,110 --> 01:07:26,350
about physical situation in which we all work and reside. We love the county, we all do.

645
01:07:29,755 --> 01:07:32,125
we wouldn't be in this room if we didn't. You all know the tax burden better than any of us,

646
01:07:36,025 --> 01:07:36,025
your staff does, because you guys live it on a regular.

647
01:07:40,225 --> 01:07:40,225
something like this puts a real better lance and understanding

648
01:07:45,490 --> 01:07:45,490
that jurisdictions like us can afford to give more probably than what we already are.

649
01:07:52,360 --> 01:07:52,360
there's got to be a better way that recognizes the challenges that exist in areas that

650
01:07:58,015 --> 01:07:58,015
can't go out to just raise property taxes and see a great yield on return,

651
01:08:03,520 --> 01:08:03,520
which is why I will be with some other superintendents working on this together.

652
01:08:08,110 --> 01:08:11,710
if there's an opportunity to work with you guys or whatever in terms of where this may go,

653
01:08:15,700 --> 01:08:19,105
I will certainly be in touch. But this could be a game changer for places like caroline county.

654
01:08:23,530 --> 01:08:26,680
then what I've found is over the years that particularly like we're going before the board of public works,

655
01:08:31,630 --> 01:08:35,275
it helps if you have elected officials for yourselves. I think we started a [inaudible] but I think

656
01:08:42,040 --> 01:08:44,920
that it sounds to me like it would certainly be something that would be worthwhile for us to partner for our understanding,

657
01:08:48,310 --> 01:08:51,220
to support the county. I greatly appreciate it.

658
01:08:53,320 --> 01:08:53,320
I'll know more after my meeting this week as we try to gain plan.

659
01:08:57,955 --> 01:08:57,955
I was amazed at some of the counties that have seen poverty rates on an increase.

660
01:09:02,845 --> 01:09:06,305
we know baltimore city is already at high poverty rates but even baltimore county has jumped about 16 percent pretty reasonable switch,

661
01:09:11,475 --> 01:09:14,705
absolutely shocking when we talk about baltimore county. But we have some potentially very strong allies

662
01:09:20,350 --> 01:09:23,095
in counties that have a lot of connected elected officials that could really help us grow.

663
01:09:26,710 --> 01:09:30,460
we can pull over as much as we can to try to get there. >> the state superintendent has used caroline as an example [overlapping] of where

664
01:09:34,170 --> 01:09:34,170
the system isn't working properly and they need to freshen up and be there.

665
01:09:38,675 --> 01:09:41,905
he is definitely a data-driven person. At the main conference,

666
01:09:43,510 --> 01:09:46,450
he did a lengthy presentation where we were all given the numbers and the data in the study

667
01:09:49,450 --> 01:09:52,225
from the information and more than once he was using caroline as the example in a way we want to hear.

668
01:09:56,380 --> 01:09:56,380
we end up to short end of the spectrum that's

669
01:10:00,700 --> 01:10:04,240
not the word to you is more technical but you all see it. We all suffer it on a regular basis and it's nice to hear

670
01:10:07,240 --> 01:10:09,610
that come from the state superintendent and it looks like he's really trying to make a difference.

671
01:10:11,890 --> 01:10:14,710
>> joe, it took a guy from texas to see it and to realize it because he's not from here but [overlapping]

672
01:10:18,340 --> 01:10:18,340
>> yeah. I'll give ms. Gutierrez fresh eyes.

673
01:10:23,340 --> 01:10:25,570
>> [overlapping] let us know. >> no more public works big accounts, right?

674
01:10:28,555 --> 01:10:30,010
>> as of right now. [laughter]

675
01:10:42,790 --> 01:10:45,010
they're fun to watch yourself because you're just sitting there watching people think. But, yeah.

676
01:10:48,310 --> 01:10:49,375
>> well, you got to do it. >> yeah. You guys have

677
01:10:52,900 --> 01:10:54,460
any other questions or board members any comments or anybody else if something that hasn't come up?

678
01:10:57,400 --> 01:11:00,130
>> is there anything on the horizon that you haven't talked about that has you scared or concerned?

679
01:11:04,230 --> 01:11:07,990
>> nothing scared there. [laughter] >> ms. Wakeman decided to come back.

680
01:11:09,640 --> 01:11:12,010
yeah, she's told her she did decide. No. In all seriousness, jeremy,

681
01:11:15,220 --> 01:11:19,105
the biggest concern I have right now is looking at the grand scheme of [inaudible] the teacher shortage is a national issue and it is.

682
01:11:24,625 --> 01:11:27,985
I can't lose sleep over colleges not turning out teachers, so we've got to focus our efforts on retaining the folks we have.

683
01:11:31,270 --> 01:11:31,270
we're not always going to be at the half of the pile

684
01:11:36,910 --> 01:11:39,610
for salary but we can do our part to get the top of the pile for one year to retain staff.

685
01:11:42,550 --> 01:11:46,450
[overlapping] we've got to focus on that. Biggest concern in the immediate in the next couple of years,

686
01:11:49,150 --> 01:11:53,130
honestly is the 60k. I truly believe the only way we get there is by totally reviewing scale.

687
01:11:57,565 --> 01:11:57,565
we have a commitment from our association to sit down next year and do just that.

688
01:12:02,995 --> 01:12:05,110
those are going to be the big lifts to get there. Everything else and I think, honestly,

689
01:12:08,340 --> 01:12:08,340
there are things we've lived through just in different variations over time

690
01:12:12,730 --> 01:12:12,730
and not being too pollyanna.

691
01:12:17,485 --> 01:12:17,485
honestly, as long as we all keep doing this and we have

692
01:12:21,535 --> 01:12:23,875
since you guys have come in as well I'm going to lock that in we've had a tradition of it.

693
01:12:26,485 --> 01:12:28,870
that's what makes all of this doable, is because we actually talk,

694
01:12:31,675 --> 01:12:31,675
we work through any challenges that pop up and we figure out how we need to approach it.

695
01:12:38,455 --> 01:12:41,905
I think that's really important. That will help cover any burden in what I'm seeing.

696
01:12:45,040 --> 01:12:48,610
>> well, with what's coming starting tomorrow, a new governor, a new controller,

697
01:12:50,305 --> 01:12:53,470
significant changes in the legislature, a new attorney general.

698
01:12:55,225 --> 01:12:57,820
what are all of you hearing from [inaudible] or other sources about what's coming and what to expect, I mean.

699
01:13:01,375 --> 01:13:05,020
we're all reading the news and hearing the news and so forth, it's like who knows?

700
01:13:07,770 --> 01:13:11,020
but the governor, he was very open during his campaign about what he considered to be

701
01:13:12,880 --> 01:13:16,000
priorities and I don't think he's backing down from that. Education is one of them.

702
01:13:17,860 --> 01:13:19,870
but overall, what do you guys see? You guys see coming down the pipe and that's probably is an unknown, but we're past it.

703
01:13:26,310 --> 01:13:29,730
>>> I think that's going to be very green, and I think there's going to be a lot of people. Those have been the two biggest takeaways.

704
01:13:32,790 --> 01:13:35,850
I'm actually on one of the transition teams and even there it's been very focused on those two things.

705
01:13:40,210 --> 01:13:40,210
this is stainability and re-staffing both at mml

706
01:13:46,634 --> 01:13:49,750
and at [inaudible] governor [inaudible] was very specific about a large portion of [inaudible],

707
01:13:53,680 --> 01:13:53,680
a large portion of the surplus from damage from lack of filled positions.

708
01:14:00,240 --> 01:14:00,240
>> space down [inaudible]

709
01:14:06,070 --> 01:14:08,950
>> those are pin positions those aren't contractual positions, so it's not just the salary plus the benefits piece.

710
01:14:11,770 --> 01:14:13,360
you do that a couple of years, it is going to be a pretty significant number but there has been

711
01:14:16,360 --> 01:14:16,360
some pretty significant impact I think to the way we do business.

712
01:14:20,605 --> 01:14:24,040
for example, our public health agency is not able to hire because the state in which our system cannot get the hires done.

713
01:14:27,935 --> 01:14:30,550
they identify a person and they can't get it done. I'm picking on one particular agency,

714
01:14:33,730 --> 01:14:33,730
but we've seen that across our partner agencies.

715
01:14:38,209 --> 01:14:41,945
we partner a lot with dhcd when it comes to grant funding. They are profoundly understaffed

716
01:14:44,335 --> 01:14:46,630
and we'll talk about along the wait time to get [overlapping] >> to turn around the reimbursements.

717
01:14:48,490 --> 01:14:49,960
>> yeah, to turn reimbursements. [overlapping].right. >> that's all on probation.

718
01:14:53,530 --> 01:14:55,285
>> it's those types of cases. Then there has been a huge push towards if

719
01:14:57,880 --> 01:15:00,430
you look at some of the appointments that have come through already, it's very environmentally conscious in a very liberal direction.

720
01:15:07,690 --> 01:15:11,290
that's going to push against us when it comes to what they're going to mandate to the county in terms

721
01:15:14,470 --> 01:15:14,470
of everything from mass transit to road construction to tax policy, landfill.

722
01:15:21,610 --> 01:15:24,280
all of those pieces are going to be affected by that we saw that during the o'malley administration.

723
01:15:27,505 --> 01:15:29,620
if you're asking me to take an ewg, which stands for educated wild guess,

724
01:15:31,885 --> 01:15:31,885
then that's what I would say it's going to affect us.

725
01:15:35,920 --> 01:15:38,680
they don't think it's going to physically affect us until you're through because that's how long it takes to get there.

726
01:15:42,190 --> 01:15:44,800
we also don't know what the emphasis is going to be on the funding that we received through dhcd.

727
01:15:49,890 --> 01:15:52,105
seeing what those priorities are, we also don't understand what the act push is going to be.

728
01:15:55,375 --> 01:15:58,780
but it would appear as though that's going to shift. They're starting with today's appointment.

729
01:16:01,405 --> 01:16:01,405
>> what I saw was a lot of people looking for jobs down there

730
01:16:06,745 --> 01:16:06,745
and what I've seen so far from the cabinet appointments.

731
01:16:15,940 --> 01:16:19,820
>> I don't see any of these people who have been appointed who are connected, except for one.

732
01:16:23,540 --> 01:16:26,810
they were connected to the eastern shore and probably couldn't find the eastern shore on the map, so it's scary.

733
01:16:30,410 --> 01:16:32,685
>> about the staffing positions, not necessarily secretaries,

734
01:16:34,420 --> 01:16:38,195
but some of the staff as you go down the plain, are previous and early administration employees or they helped her campaigns?

735
01:16:43,100 --> 01:16:46,415
there's a lot of redundancy when it comes to that. >> you're talking about shortly mountain apartment environment has

736
01:16:49,640 --> 01:16:49,640
a tremendous amount of agencies that have not been able to keep up.

737
01:16:54,355 --> 01:16:56,980
that is one of the things in their transition efforts that has been shared time and again,

738
01:17:00,335 --> 01:17:03,460
very consistent with what you're saying. Mde begins to fill those positions,

739
01:17:07,325 --> 01:17:07,325
then they'll be able to regulate tighter and tougher than they've been doing.

740
01:17:12,515 --> 01:17:16,385
they just didn't have the people to do it and not only that vacancy, they lost a lot of people who had a lot of years of service and a lot of expertise,

741
01:17:21,470 --> 01:17:24,860
and not only didn't replace that expertise, they didn't replace the position.

742
01:17:26,600 --> 01:17:28,940
they couldn't do their jobs fully, when they couldn't do their job fully,

743
01:17:30,650 --> 01:17:30,650
you need to tell catherine freeman get ready for law enforcement requirements.

744
01:17:36,395 --> 01:17:38,480
I don't know if that'll happen, but it's definitely a shift to [inaudible] proceed.

745
01:17:43,355 --> 01:17:43,355
>> yeah. It's hard to predict what the financial impact of that it's going to be.

746
01:17:49,175 --> 01:17:49,175
then we have to say, is the debt going to push us into a recession or even a depression?

747
01:17:56,990 --> 01:17:59,705
and what is that going to look like? We're looking at commodities,

748
01:18:01,160 --> 01:18:01,160
fuel and food, grain production, which affects us.

749
01:18:06,830 --> 01:18:09,305
how does that, play out. You're getting into some 60,000 foot views here,

750
01:18:12,155 --> 01:18:12,155
but bringing that back into a 10,000 foot view,

751
01:18:16,850 --> 01:18:19,505
it's a little tricky to predict. The county has been working some alternative revenue streams

752
01:18:25,430 --> 01:18:25,430
and it looks like maybe some of those may play out in our favor in the next few years.

753
01:18:31,265 --> 01:18:34,760
those are long games but it's not going to offset revenue loss from a significant economic downturn.

754
01:18:40,250 --> 01:18:40,250
that's why I suggested that maybe in

755
01:18:44,960 --> 01:18:44,960
the county's best interest to stuck to rules here maybe,

756
01:18:49,220 --> 01:18:53,045
so that we showed ourselves three years from now when. >> we don't have the ability to help you?

757
01:18:55,190 --> 01:18:55,190
>> yeah. [laughter] [overlapping]

758
01:19:00,470 --> 01:19:02,465
>> you may be relying on the state. It sounds like maybe the state will pick up that word,

759
01:19:06,050 --> 01:19:10,040
probably going to have more financial burden put on us, but maybe for the record,

760
01:19:12,590 --> 01:19:14,690
the state is what pay off that difference. >> that would alleviate a lot of burden.

761
01:19:17,680 --> 01:19:17,680
>> that's a big number for binding to us.[overlapping]

762
01:19:26,090 --> 01:19:26,090
>> but I think the bottom line for us is going to be continuing

763
01:19:30,425 --> 01:19:30,425
having a tax base that's going to remain for this dialogue for a number of reasons.

764
01:19:40,025 --> 01:19:42,680
I mean, for number one of the reasons is that, for good or bad,

765
01:19:45,245 --> 01:19:45,245
when we have a company or when we have a business that wants to come in and do something,

766
01:19:51,515 --> 01:19:51,515
it always seems to get shut down.

767
01:19:55,900 --> 01:19:58,580
when we have questions about, why can't we attract businesses?

768
01:20:00,320 --> 01:20:02,570
it's because when we have innovative businesses, probably had a lot and I'm sorry if that's true.

769
01:20:08,260 --> 01:20:08,260
when we talk about growing our tax base,

770
01:20:12,860 --> 01:20:12,860
it's difficult because we're an agricultural camp,

771
01:20:17,045 --> 01:20:17,045
and I want it to stay that way but that limits your ability to work with your taxpayers.

772
01:20:25,430 --> 01:20:25,430
but I think it's going to be scary for you.

773
01:20:38,130 --> 01:20:41,680
>> what I've told a lot of people I've met was, if you look at our property tax rate,

774
01:20:44,595 --> 01:20:46,820
we're in the middle of the park. We were firmly right in the middle of

775
01:20:50,045 --> 01:20:50,045
the 23 counties in maryland but we're surrounded by;

776
01:20:55,070 --> 01:20:57,350
three law tax, property tax, jurisdictions, and [inaudible] delaware.

777
01:21:03,070 --> 01:21:03,070
I reiterate to a lot of people there that we share,

778
01:21:07,505 --> 01:21:07,505
I think, it's a 25 mile or 35 mile border with delaware.

779
01:21:12,185 --> 01:21:12,185
our competitiveness with our neighboring state

780
01:21:18,530 --> 01:21:18,530
really has a big impact on our ability to attract investment in this county.

781
01:21:23,525 --> 01:21:27,455
we do have a unique battle there. We'll just keep our heads down and keep going.

782
01:21:34,370 --> 01:21:34,370
>> every unfunded mandate that comes down the road,

783
01:21:39,500 --> 01:21:41,600
it makes it more difficult. When you quote a number on what it cost you to build the house in this county by

784
01:21:47,060 --> 01:21:47,060
the time you implement your mandatory sprinkler systems and the septic,

785
01:21:52,745 --> 01:21:56,500
those are out of our control. We've done this before and becoming negative zero cabin footprint,

786
01:22:03,500 --> 01:22:07,370
you know you're not putting anything into the air for that new house [overlapping] >> school buses too.

787
01:22:08,435 --> 01:22:08,435
>> have a mitigation system attached here, frank said.

788
01:22:17,900 --> 01:22:19,550
well, there's no exhaust from there. >> I don't want to I'm just [overlapping]

789
01:22:24,650 --> 01:22:24,650
trying to figure out the answers to the questions. [laughter].

790
01:22:28,910 --> 01:22:28,910
>> dangers that are attributed to the alternate energy systems but they are there.

791
01:22:37,250 --> 01:22:39,110
[overlapping] the cost is ridiculous and the infrastructure is not that good. We could probably.

792
01:22:41,450 --> 01:22:44,195
>> [overlapping] that's the biggest pieces, we could shift all of that, but we can't support any other.

793
01:22:46,430 --> 01:22:49,760
>> right. Maybe all these cars that are headed to the ocean that don't know for sure is anyway,

794
01:22:53,405 --> 01:22:56,405
they have a lot of electric cars we could add, maybe we can make some money off charging.

795
01:22:58,100 --> 01:22:58,100
[laughter]

796
01:23:02,720 --> 01:23:04,430
>> they're gonna break down, right? [laughter] >> we care about telling them because there are dangers attached to that.

797
01:23:13,750 --> 01:23:13,750
I got once told that it may go by somebody who was trying to talk to

798
01:23:18,170 --> 01:23:18,170
me to putting charging stations everywhere. I'm like yeah why? [overlapping].

799
01:23:22,790 --> 01:23:24,320
>> I'd have told you what I told him, but [laughter] it's got me $100.

800
01:23:29,140 --> 01:23:29,140
>> I appreciate your contacts

801
01:23:33,740 --> 01:23:37,310
with bank or another state contact who are not here because of the dialogue [inaudible] the

802
01:23:41,960 --> 01:23:41,960
other scary and through my thinking right now, a lot of unknown,

803
01:23:48,790 --> 01:23:48,790
>> I think being able to share ideas is good.

804
01:23:55,085 --> 01:23:55,085
I mean, this is one of the chamber meetings [laughter]

805
01:24:03,860 --> 01:24:05,750
>> nobody got it. >> thank you so much you're much appreciated.

806
01:24:09,275 --> 01:24:09,275
the only other things that are upcoming meetings and events,

807
01:24:13,610 --> 01:24:13,610
where we track those [inaudible] we'll be sharing duties in a couple of weeks.

808
01:24:22,865 --> 01:24:22,865
with that I'll answer anything else on to the motion to adjourn?

809
01:24:27,440 --> 01:24:29,420
>> motion to adjourn. >> second?

810
01:24:39,670 --> 01:24:39,670
>> [laughter]