SmartTranscript of House Education - 01-22-2025 - 1:15 PM

[Speaker 0 ]: And you are live. [Chair ]: Okay. Welcome back to House Education. Wednesday, January twenty second twenty twenty five. The Budget Adjustment Act is really one of the first pieces of legislation that goes through the House. [Sean Kuzna ]: This, as you probably have all [Chair ]: heard, is really truing up the budget Truning up. That we are currently in based on anticipated revenues and where expenditures are. This legislation resides with the House Appropriations Committee to begin with. We are asked to weigh in on certain pieces. Usually, it's just money. Sometimes there's some policy language that you take advantage of because of the timing, which is what we saw this morning with the adult education program language that they proposed for that adult diploma high school diploma program situation. But, really, for us, we sort of reside when it comes to the BAA within the education spending portion of that. So we're gonna hear today sort of where the two budgets, I'm gonna refer them as, currently, how they stand because the we have got the education fund that funds public school, k twelve education system, which also gets sort of reevaluated and treated up, like, did universal school meals, yearly cost, what was budgeted, that sort of thing. And then there's the operations of the agency of education, which is funded out of the general fund, not the education fund. And it also has ups and downs in terms of extending and all that. So we've got two members of the AOE here to walk us through all the numbers that are in the BAA over at the agency of education. It's a chance for us to kind of appropriation. It's It's a chance for us to sort of see what they are, ask questions, and if we deal with modifications are in order, we can make recommendations to the appropriations committee. Turn it over to you. We've got Sean Kuzna, the chief financial officer for AOE, and Jill Grace Campbell, the deputy secretary. Mhmm. Welcome. [Sean Kuzna ]: Thank you. Yeah. For the record, I'm Sean Kuzna, the interim CFO at AOE, and I have Jill on Zoom, our deputy secretary. I'm trying to share, and I don't know if I can it's sharing something. Try again. Okay. I've got a slide deck prepared for all of that. What Pierre was talking about. Alright. So, yeah, we're gonna go over the the BAA, and we're gonna talk about our current budget adjustment items. We only got three this year. Lesson thing, peer review program, asking for a little more money there. The adult education program, and we've got a kind of reduction in the extending. And And then we're gonna go into the FY twenty four carryover and we'll revert for general fund. And then the peer review program, we're looking for an additional seventy five thousand to cover the increased number of folks going through the peer review program. So we we budgeted for about eighty eight to go through this year, and we're looking more at hundred and fifty. So we're looking for an increase there, and I'd reference some some information about the program. I think last year was the first year they put the moratorium on the fee that we normally charge for peer review program, and it's backfilled with getting funded. That's what we're requesting here. It's a little more general to to cover the the fees we no longer collect. At least we'll hold for the next five years or so. Next, we have the adult ed and literacy program. Here, we had a small increase in the number of students served, I think, in FY twenty four. We we pay out on the average of the last two years. And so we're looking for another five hundred and six thousand, and this program is broken into two different appropriations, two different funds. So split sixty percent general fund for three hundred and three thousand and forty percent at funds for two hundred and three thousand. And the appropriations are in section five zero four five zero four. What do you want? So happy to take questions [Chair ]: from me. As The adult education literacy is confusing. I guess I can just say to all of you, what's proposed here is sort of what was intended [Sean Kuzna ]: under [Chair ]: legislation passed last year. Okay. [Sean Kuzna ]: And next week, we got our adjusted education payment appropriation. We're looking at a reduction of eleven million dollars, and that's broken up into two different pieces. We had a three excuse me, three million dollar budget item to cover the e l categorical aid, which was new last year. In the end, when the budget was finalized, it that was pulled out into its own appropriation, and this buying was never reduced, but we kinda have this money in the budget twice. So this corrects that. And then our education spending grant, this is the big Ed Fund grant for the school districts. Our number was a little high when the final budget's final were amended and passed. So we're reducing that one by eight million to bring it down to the the need for FY twenty five. [Chair ]: It would be fair to say that eight million dollars in the grand scheme of two point three billion business. That's pretty gross. Yeah. Yeah. [Sean Kuzna ]: And and then we're another reduction here. We have we're not expecting to spend as much as we have in the budget for universal meals. So we're we're bringing that down to point nine million down to the current estimate from our future shipments. [Chair ]: Can you tell us what that current estimate is? [Sean Kuzna ]: Seventeen and a half, I believe. [Chair ]: So just want everybody to hear that. Seventeen and a half million, you hear the number thirty, possibly around a lot. That's sort of old news. Yep. Well, I I think [Sean Kuzna ]: we're estimating eight, seven and a half for next year. Okay. Alright. Next, [Chair ]: we'll [Sean Kuzna ]: go into the FY twenty four balances and general fund and hedge fund. We either ask to carry over some funds or revert some funds that the next couple of slides. We'll we'll see what we're asking for or revert. Yes. [Jill Grace Campbell ]: Go ahead. Ask us about, like, procedural clarifications. Or can you explain a little bit what carryover means and [Sean Kuzna ]: what reversion means? Sure. Carryover. You know, a lot of times we have grant obligations that hadn't been liquidated before the year ended. So we're we're still kinda on the hook for making those payments to the grantees. So we have to carry that money so it doesn't affect our our current year appropriations. And then if we don't need the funding for the administration, then they'll to our area of our request, then the money gets reverted back to the general fund or it didn't use. [Chair ]: Like, the carrier would report generally obligated? Yes. Or or [Sean Kuzna ]: we have plans for it, and we ask for permission from the administration to just just just kinda carry over that we didn't have. [Jill Grace Campbell ]: And then reversion goes to the entire general funds, not the education portion of the deductible fund. [Sean Kuzna ]: Yes. I believe so. Because we we will revert back general fund specifically, and then you'll see we'll or we'll revert in that education fund line. So so the first couple of slides are are general fund revert or carryover slash reversion. So our our operating appropriations and finance and admin and education services, a small purchase order carryover in finance and administration. And then we have we had about nine hundred and ninety three thousand in in general fund in our head services program. Four hundred thousand of that was obligated for grants contracts, and then we have a a couple things we wanna do with the extra money that we got approval from the administration. Can I [Chair ]: ask you a question? You say that we get approval from the administration. We tend to refer to you all as the administration. So did you tell me a little bit more about that? Manage. [Sean Kuzna ]: Yeah. Okay. Yep. So every year, there's a carryover request that we do, I think, for August first where we detail all this information. And then, you know, we'll see yes or no, and then eventually gets into the budget request from the two. So they all paid the eight ninety three. They said no to a hundred thousand dollars. So hundred thousand gets reverted. These are our funds for the money. Moving on. So we've worked in our fund. We've got the adult and then the adult education literacy appropriation, a small balance there that's obligated on some grants. The flexible pathway appropriation, five hundred nine thousand and less obligated for the spring semester of the dual enrollment program and then a very small balance on the state board appropriation. So that's probably, you know, Alright. Moving on to the Ed Fund. Again, in the finance and administration appropriation, we have a hundred thousand obligated. That's to cover some costs on the FFDBMS project. We're reverting the balance of three hundred one thousand. Special ed, we've got grant obligations to carry over for two point three million. And then State Place, we're reverting fairly large balance of thirteen point six. [Chair ]: That might require a little explanation. Yeah. [Sean Kuzna ]: So I think over the years, we generally carry over the balance there and thinking we may need it for the the current year. So we look back at our, you know, how we've been spending those funds, and we're really not able to spend them as much as we receive each year in the current budget. So we feel we can live in the twenty million dollars that's in my twenty five budget for that line item this year. So we're we're running the balance, you know, anticipating. So that's back to the end fund. So that's good news for whoever manages the the overall And last, it's spending grant. I mean, that's our large two point whatever billing appropriation, small balance for reverting that was left over from last year. We had a five hundred ninety three thousand reverting back in the small schools grant. That grant program ended last year, so we're giving back the balance. It was kinda replaced with a merger support grant program. But, again, we're gonna pull it with the current budget amount there. And then second, we've got some grant obligations for three hundred and sixty seven thousand. We're reverting one point eight million that was not needed for that year. [Chair ]: Alright. [Sean Kuzna ]: Moving on. Flexible pathways appropriation. We've got a a decent carryover for obligations and anticipated FY twenty five increases. I really wanna say it's early college increases in, you know, the student taking advantage of that program, and then we're reverting to one point three million. [Chair ]: So does that mean that we have in that area basically three million dollars? And what you're saying is that really only one point seven eight was used. No. One point eight is some of that obligated. [Sean Kuzna ]: Yep. So it was, you know, granted out last year, and the rest is we're hanging out to where anticipated increases [Speaker 4 ]: Right. [Chair ]: In the current. But it sounds like but then we have one point three of sort of overestimating what it would it would be Yeah. Costing. [Sean Kuzna ]: Yeah. [Chair ]: Okay. [Sean Kuzna ]: The flexible pathways is made up of several programs. Right. They they accumulate that balance. Universal meals here is six point two million that we had more than we needed last year. So as as we said earlier, we're reducing current year appropriation also, so we certainly don't need this month to cover that program. And then lastly, we got the PCV remediation. That's a one time money, sixteen point three million that we're continuing that program this year and the question is monitored. [Chair ]: We might need a little more on that as well Okay. Just to understand how much of that current sixty point three is in fact already obligated, just not paid out yet as opposed to might be needed later. [Sean Kuzna ]: Yeah. I I believe and Jill can chime in if she wants to. I'm sure [Chair ]: you guys can ask questions. [Sean Kuzna ]: Yeah. It's all gonna go this year. We've even gotten, I think, four point five million more transferred from another agencies to continue the program you cover, I guess, whatever's happening this year. Any more you wanna add, Jeff? [Speaker 0 ]: Yeah. So I would consider that sixteen point two million in essence fully obligated through grant awards, including the the large portion of that was for Burlington High School. So even so obligated, meaning we've made a grant award. Right? The money is no longer available. We promised it, and then the schools will seek reimbursement once they have paid their invoices. So to Sean's point, I would consider that money obligated and and no longer available. And then in addition, to cover some of the PCV remediation costs that cropped up over the past few months, the Department of Environmental Conservation, which is under Agency of Natural Resources, has a rolling federal fund. They were able to do an an MOU between our two agencies to continue to make funds available to address those remediation costs, specifically, the cost that came up related to North Country. And then we also do have, you know, other other remaining costs for schools. [Chair ]: Is it fair to say that even with that additional four, whatever, million dollars, that's also all fully obligated? [Speaker 0 ]: It's on its way to being fully obligated. Yes. [Sean Kuzna ]: Okay. [Chair ]: Mhmm. Thank you. [Speaker 0 ]: So and so if we wanna kinda go go back, Peter, back back in time for folks that are new in the room, there was thirty two million dollars in education fund that was obligated that was appropriated by the legislature for the PCV program. At this point, all of those funds have been obligated, and most of them have been reimbursed. [Sean Kuzna ]: Thank you. [Chair ]: Hello, Peter. Can I just Yes? Yeah. I think we're ready for questions. We're taking this long. [Speaker 4 ]: Thank you. The flexible pathways, the one point three Mhmm. The the you just mentioned it as we no. There's several different segments of that program. So it would be interesting to know whether it was all in one or or how it was spread out amongst the programs just to get a sense of where take our uptake of the programs. [Sean Kuzna ]: So I I think the big one here, sorry, like, some children were different. The high school completion program. Okay. So I think that one ended up with a large balance that ended that program ended last year. I think so where we normally made carryover money to continue that. [Speaker 4 ]: Got it. [Sean Kuzna ]: That could get you [Chair ]: a couple months. That's actually that helps a lot. Okay. [Speaker 4 ]: I'm just saying I don't know if anybody else wants to know them. But [Sean Kuzna ]: I kept that. Sure. [Chair ]: We're pretty [Jill Grace Campbell ]: In the general funds part of the budget, where would we see reflection of vacancies at the agency? Like, it looks like from the directory we got earlier this year, there's a from my account, at least twenty two vacancies. Yeah. Are those being held as carryover actively pursuing to fill those positions? Has that money already been reverted? How where would we or how would we see that reflected here and what's happening? Yeah. Well, [Sean Kuzna ]: I I think we budget roughly five hundred thousand dollars less than general fund that we need to remember all of our positions that are funded with general fund. So we you know, the budget process works with us to anticipate vacancies. So we short ourselves a certain percentage. So that's kind of already built in. So we're ending the year last year. Yeah. We caught the some of that eight hundred ninety three thousand may have been still more vacancy savings that we had since we had such a large number of vacancies. So we've asked for permission to send that differently. Does that answer your question? [Jill Grace Campbell ]: So on slide eight [Sean Kuzna ]: Yep. [Jill Grace Campbell ]: It's the educate section b five zero one education services. Is that the number you're talking about now? [Sean Kuzna ]: Yes. Yeah. [Jill Grace Campbell ]: So it's now being used for subgrants and contracts, [Sean Kuzna ]: charter companies. That was always that was always gonna be used for subgrant. It it the the difference that we got permission to spend their time. [Chair ]: This may be okay. Talking about vacancy savings, so what you're saying is that you recognize that vacancy savings are or vacancies are a reality. Again, budget with a certain number of vacancies felt [Sean Kuzna ]: to be kind of always there. It's like five percent. The the just we're short the amount by five percent. Okay. A few months. So about five hundred thousand. Yeah. Whoever is correctly. Yeah. [Jill Grace Campbell ]: Is that do you know can I sorry? I'm I'm not sure I'm totally understanding it. But then do you know if that in the carryover, the obligated sub is it contracts with that largely API consulting contracts from CTE, Alyssa, and Lauren. [Speaker 0 ]: I can respond to that. So the the funding for APA and for new solutions, which is another consulting group that's been providing a timely sort of on the ground budget support for districts. We actually leveraged our, the last of our kind of SIR state level funds and then did a liquidation extension. So we were really maximizing federal dollars to pay for those consult. [Chair ]: Alright. So I think we're we're just so everybody is running your work looking at section b five zero one with eight hundred ninety three thousand dollar carryover on that. Just how that talks about vacancy savings and and all that. Carryover, meaning it's obligated Yeah. But not necessarily obligated to the potential hiring of vacancies. [Sean Kuzna ]: Correct. No. No. No. That would be in our current budget call ready. So good. Yeah. [Speaker 4 ]: Thank you. [Speaker 0 ]: Sorry about that. Yeah. Yeah. So just I know state hiring practices across state government can be a little bit quirky to folks, but is is budgeting for that level of vacancy savings a standard across Vermont state government, or is that particular to the agency of education? [Sean Kuzna ]: I I think all agencies and departments have some sort of big savings factor that they can build in. Mhmm. We didn't adjust ours, I I think, up or down this year because we have some of the vacancies, but but, hopefully, we can fill them. And, you know, by twenty six, we will have so many. [Speaker 0 ]: But Yeah. Yeah. If you have a sense of how many years that's been kind of the standard practice just if you know. [Sean Kuzna ]: Ever since I've been doing it, but it's with the agency, which went back to early detection. Can we [Speaker 4 ]: yes. Just a quick follow-up on the obligated subgrants and contracts sort of following up. Can you just give me a description of what those subgrants and in general and contracts would be? [Sean Kuzna ]: So let's see. [Speaker 4 ]: I mean, maybe Jill has better some time. [Sean Kuzna ]: Yeah. I mean, Governor's Institute comes to mind. That's a general general funding contract. So or grant. So if if they don't request everything, they're granted. We hang on to it, but we get a label and send it to them when they requested it. You know, after that, this will be rendered. Yeah. I think they answered those numbers for today. And then I don't have examples of the contracts. It's just a contract that's funded with federal funds coming out of out of the educational services. They have to get back to you with the firm [Chair ]: Okay. That'd be great. [Sean Kuzna ]: Real examples. Yeah. That would that would appreciate that. Thank you. [Chair ]: Any further questions? So just through the hour roll here, I'll be sending a letter to appropriations commenting or not on this as well as, like, the language we heard this morning. In general, we've never really said much about these because they are not substantive, But that's what makes everybody have their questions answered. Great. John, thank you. So thank you. We're gonna do you don't need to reset, do we? Because we're on the same topic. [Speaker 0 ]: I'm not sure. I'm not sure. I'm not sure. I'm not

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SmartTranscript of House Education - 01-22-2025 - 1:15 PM

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