Charleston County School District, SC CCSD Board Meetings 2018-2019, 17 Dec 2018

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From YouTube: December 17, 2018 COW Audit and Finance Committee

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December 17, 2018 COW Audit and Finance Committee

A

All right, the next item up is most of your budget forecast that was sent out in our packet anybody. You can see the next three years in front of you, the expected revenues and the expected expenditures. The assumptions within those are you're. Gonna have two and a half percent, the average increase in assessed values and a three millage.

A

Three mill increase each of the next three years, so it's a as rosy a presumption that you can have this year at the end of the year, we'll end up with a little over twenty million dollars added to the reserve fund, so we'll be closer to 90 million in reserve, and that's where we're tracking right this minute and again key items is you know when you get it? Our assessed value increases in Charleston, County people's property. Getting more value has saved us this year and last year that and lapse salaries have saved us.

A

So this is assuming that that continues. But if we look again two and three years out, our expenses are gonna outpace, our potential revenue to be able to pay for them. So there's a budget deficit two years out and then three years ago and.

B

That's so there's only two three mil increases in the five-year projection. This.

A

Is a three year projection and it's assuming yes, each of the three.

B

Assuming three tax increases in three years, it's.

A

A yes, so minus that and you're. You start deficits earlier right.

B

So when do we, when do we hit our cap to be able to raise millage those.

A

Are the estimated? Obviously we don't know I.

B

Thought there was a very big conversation at the last board meeting where we were talking about.

A

There explain, there's a you know, act 388 explains exactly what we can do. We can grow our millage by.

B

A

Number, this different pot of money, but our percentage increase in students plus inflation, which is averaged about.

C

Two point:.

A

Nine seven percent annually over the last say since 2007, so this is looking assuming that it stays on par for the next three years to have more or less three percent increases in tax. Do.

B

We have the ability to unlimited, raise millage, or do we have a cap on the millage week.

A

B

My question goes back to my first question: are we getting close to the point where we're not going to be able to raise millage.

D

B

I think that's something we need to make sure the legislators are aware of. If we're hitting our cap and we're running, then the funding stream doesn't work. We don't have any other options. This is proposing raceless.

A

Yeah this is proposing raises and we're still out of revenue.

B

To at some point, we don't have the ability to raise taxes, we don't have that independent option. Well,.

E

That's mr. Garrett indicate the state tell us every year, each year what our allowable millage increase is for them. In these assumptions here we assume, as he indicated, 3%- that's the average so about the last three years, actually, the last three years, 3.1 6%, so with no right at the average.

B

E

So our assessed values, as he also indicated, continuing to rise, I. Think where I see us the biggest problem is that, had we not had the limitations on act 388 for this current fiscal year, we could have increased revenue up to 7. We would have it up to additional 16 1 million dollars.

B

C

A

B

We say this: where people understand it, we wouldn't have been able to raise our taxes, hidden-object.

E

B

That would have been money generated for the school district. That's.

C

B

Us because I think that's where people are getting confused between the cap. They.

A

B

There's a cap and we can raise taxes as we want, so we need to be very clear that act. 388 is putting a huge constraint on our ability to fund.

E

That's pregnant in the conversation that the academic team had earlier this afternoon around Mills school offerings as an example those the ability to do that. Those types of things are constrained by the I create restrictions.

A

All right, what questions does anybody have on there.

B

A

This is just assume this is not proposed budget dollars. This is next, and this has no I. This is just assuming of standard increase in our expenses or assuming that everybody's hired next year- and this is sort of.

B

A

Yep, it's just an information item all right here. No other questions, then the whole or adjourn my page I apologize, Cronos update mr. Kennedy thank.

E

You so I asked the board is aware back in April the State Department.

B

E

The Secretary of Education for the state indicate that we were not compliant and that we were been put on the financial watch. If we were not, we did not come into compliance with the Kronos timekeeping requirements. It's something that our external auditors have pointed out. That's a material weakness, at least for the last three years when the ones mr. Larsen Allen breach the board.

E

Last month on our financial financial statements from fiscally or 18, they presented a material weakness again recurrence of the non-compliance with with the Kronos and so what what we proposed to the art and Finance Committee or to to our in finance committee. Earlier this month they say a progressive discipline program to ensure that our employees take the compliance issues seriously.

E

Just on the metrics here on the second page of the document, it shows that when we first started taking them, taking a look at this problem back in the spring back in May June timeframe, we had both employees and supervisors a rough roughly 800 per week that were not complying with the the approval approvals, as the graph at the bottom shows over the. Since then, we've decreased that to around two hundred or so employees and in supervisor, so the trend is going in.

E

The right direction, however, is flat is flattened out, and so the the program on the progressive discipline is to address the remaining. Now persistent lack of non-compliance.

C

Discussion in the letter, it looks like we're following up on some kind of discipline for employees who are not your they're missing a punch or not approving there's what about and I made just have missed it? What about the supervisors? Who are not approving what their let's say, their employees have done everything correctly, but the supervisor is not doing their part. Yes,.

E

So the the focus, the focus that I have right now on the team, has its action on the supervisors, because here we can, we can get that employee.

F

F

E

Person and the intent is to we will have a various reporting periods. The first reporting period is so January 1 through June 13, so at the end of the second half of the fiscal year, and so the those offenses then apply for to own individuals within that um that reporting period.

F

Give an adult spot.

F

And we don't give children the same concession, what's really interesting.

C

Started these offenses are ready with they.

E

Start 1 January.

B

Mentioned at the last meeting.

D

B

I think what you were specific about is we would like to see that tied to their performance reviews. These are people not making sure key parts of their job are done and it's having no effect on their raises and promotions.

A

Ok, any other question I hear none then we'll adjourn the Committee of the Whole meeting.