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Hey, everybody. I'm Doug, and that's Connor, and

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this is a very caffeinated

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edition of the Bethel School District District Presents

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podcast. We are gonna talk, Connor, about coffee

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a little bit later on. But before we

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get there, we're gonna talk about school district

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budgets, a very important topic, and we want

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folks to understand out in our community and

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our staff and even students that are listening.

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There's a lot of intricacies about school funding,

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and we're gonna dive into them. Now this

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summer, there's been a lot of news stories.

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You don't have to Google too far to

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find that many districts in our area, neighbors

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and those up north and south, are struggling

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a bit financially. Indeed. We're all seeing those

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stories of layoffs and even school closures all

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around Washington. But here in Bethel, we're actually

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doing better than most, and that's thanks to

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the hard work and difficult decisions

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made by senior leaders to get us on

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the right path.

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Only a few years ago, the district was

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in deficit spending, but that has changed, thankfully.

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Chief financial officer Brian Verrilli talked about that

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during a recent school board meeting. You can

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see we had those 3 difficult years of

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deficit spending just a few years ago.

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Last year, you were about as flat as

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you can be. That's kinda what you wanna

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do as a school district. You spend the

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revenue on the students that you receive for

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the year.

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This year, we are projecting right now we're

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gonna have a little bit of surplus and

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just high level next year about the same

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amount of deficit.

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So over those 3 years, we'll be pretty

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flat is the goal. Reminder, revenue has over

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this time period risen a little bit slower

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than expenditures.

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And then our fund balance was around 69,000,000,

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but most people would say that's high for

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their,

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amount of spending we do every year.

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If we're spending

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390 ish $1,000,000,

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39,000,000

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is about 10%, and a lot of districts

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try to stay around that 10% number. As

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you can see, we're pretty flat in these

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projected years. Before we go any farther, I

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love how he says $390

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ish

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million. Funny way to talk about that much

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money. And we are talking about big numbers

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here because we are a big school district.

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Lots of students

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means lots of staff. 80% of our budget

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is in salaries and benefits. In fact, we're

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one of the biggest employers in Pierce County.

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So you may have heard. He said something

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about general fund balance. Now that's not something

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everyone understands.

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We're not for profit, so we need to

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spend what we get money wise, but you

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do need to have a little bit in

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the bank. Some districts say about 10% for

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a variety of reasons. So it's kind of

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like an emergency fund? Exactly. But there are

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other reasons too. Cash flow fluctuates throughout the

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year. We get different amounts from the state.

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We get 2 big months of property tax

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revenues, but our expenditures

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are pretty steady because our biggest expense is

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payroll. We have a couple of months that

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are higher than others because of vacation cash

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outs and stuff like that, but it's our

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revenue that tends to fluctuate a lot throughout

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the year from month to month.

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So we don't wanna have to borrow to

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meet those cash flow needs.

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Bond ratings, the rating agencies,

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Moody's, Standard and Poor's, that rate our bonds

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when we build schools.

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One of the top things they look at

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is your fund balance. And if your fund

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balance is decreasing,

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you're gonna have basically a lower credit rating

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and pay more for that money that you're

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borrowing to build those schools.

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Also, emergencies. You never know when emergency is

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gonna come up come up.

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Cash reserve will help mitigate that,

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limiting disruptions

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to current programs. So if we were to

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have a sudden decline in enrollment

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or other factor in state funding,

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your fund balance can allow you to get

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through those tough times without making drastic cuts

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right away. So it just smooths the disruptions

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from year to year. He covered a lot

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of ground there. One thing he mentioned was

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our bond rating, and here again, Bethel has

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done exceptionally well.

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In fact, done something other districts haven't been

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able to do. Our bond rating, which is

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AA 2,

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there's only one bond rating higher than that

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that school districts can get in Washington state.

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Our bond ratings stayed the same while other

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districts have actually seen their bond ratings drop.

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Quick clarifying question.

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Our budget's based on the number of students

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we have. Right? That's right. And unlike other

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districts, Bethel is still seeing a little bit

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of growth while other districts are not. So

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that's in our favor as well. Another clarifying

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question would be, where does our money come

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from? Well, if you follow school funding, you'd

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be able to guess it's state, federal government,

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and local levies. But here's the actual breakdown.

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Most of it comes from the state, about

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77%,

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and about 70% of that 77%

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comes from the prototypical funding model,

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that I like to talk about quite a

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bit. But

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other big sources of revenue is the special

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education funding we get from the state.

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Transportation funding, we get we'll get just under

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18,000,000 we're projecting for next year.

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Lap about 11,000,000

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and some many other smaller state programs

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will add up to that.

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305,000,000

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from the state federal government

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are projecting 36,000,000. The biggest there is actually

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food services

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at about 10,000,000.

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Title 1's

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6,000,000,

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special ed from the federal government's another 6,000,000

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and a whole bunch of other smaller programs.

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Now Brian mentioned the prototypical

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funding model, and that's something I think we

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need to break down for folks. Yeah. For

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sure. I don't understand it. Well, Webster's

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defines prototypical

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as Stop. Stop. Stop. Let's not go there.

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Let's have Brian clear it up for us.

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The number of prototypical

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positions are determined by a number of students

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you have. So there's a format, and it's

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different for different grade levels. Like, k through

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3, you get

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1 prototypical teacher for every, 17 students. At

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the higher grades, it's close to,

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one teacher for every 25 points, 25 to

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20 it depends on grade level. Let's say

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20 one for every 26 students. Just a

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reminder for how these numbers are determined.

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And then the state gives you money based

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on those numbers. Alright. I'm gonna need a

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little bit more than that. Well, that's not

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a problem because school board president Marcus Young

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senior knows this be a hard thing for

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folks to understand. So he and Brian Verley

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had a little q and a to help

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people understand what the prototypical funding formula actually

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is. For you all, slide number 10 is

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a slide that actually lays out the

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term we've heard prototypical

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model

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for funding from the state for both certificated,

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classified,

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and certificate administrators.

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Just for our questions today, we're gonna talk

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about the first one, understanding that what we're

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gonna talk about and the questions I'm gonna

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ask fit each one of those categories. They

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do. Okay. So the first question is,

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is this slide stating that per what the

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state public what the state's public school funding

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model suggests, a certificated staff member is funded

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at $82,902

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a

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year? Yes. That was correct. That's for next

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year just to be totally clear. Next year.

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Yes. Okay. So just to be clear, this

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is the base amount that the state pays

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for any certificated staff member to the district.

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To Bethel's district at 6% regionalization.

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Yes. K. So if we were to put

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this in the simplest equation,

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1 Feet, which is what you,

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talked about before,

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equates to a full time certificated staff. And

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based upon a school's enrollment,

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if they qualified for 10 FTEs,

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that is 10 full time employees

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at $82,902,

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which would equate to $828,020.

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Is that correct? That is correct. Okay.

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Does the state take into account or have

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any type of scale in pay that accounts

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for the experience of years for a certificated

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staff?

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We do not receive any, and the vast

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majority don't. But there is a few districts

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that receive an experience factor, but that hurdle

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is extremely high.

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And even when I look at our

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scattergram of kinda where our teachers are, I

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think we have a lot on the high

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end, but we're not even close to reaching

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that hurdle. To be able to qualify that.

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Be able to qualify. And and actually is

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a very small addition what you get for

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that. Okay. Yeah. But in most

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contracts, when we look at the contracts,

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in most contracts, we do have different steps

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that include the years of experience, which we

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should,

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or,

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degrees or things of that nature. And years

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to both.

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I'm gonna state Yeah. Yeah. So our salary

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schedule, if you're a BA,

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so a bachelor's degree with no additional units

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and 0

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years of service. So your 1st year working

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at the district, that's about $63,000.

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Okay. And the top end, if you've got

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a

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master's plus 90 or doctorate Mhmm. With the

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maximum number of years, that's just under a

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120,000. So that's the range on the salary

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schedule. And the steps all along up, you

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know, across depth experience and with education units.

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Yes.

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When we use the term certificated

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staff,

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is that referring to just teachers? No.

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There's Who does that all include? It's librarians.

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It's counselors. It's nurses. It's psychologists.

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It's TOSAs. It's social workers. It's anybody who

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needs a certificate

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but is not an administrator.

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So when you stated at the beginning of

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that range,

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was that was that just a teacher range,

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or is that in that group period, or

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do they each have their own ranges?

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In our district, they do not have their

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own salary schedule. They're all in the same

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salary schedule. Same salary salary schedule. K. What's

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the average pay of a certificated staff?

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This year, it's $94,745.

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K. So what percentage of our staff are

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above the prototypical model amount?

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72%

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are above that. So 72% of the certificated

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staff that we have are above

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$82,902.

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Yes. Okay?

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If we have staff who are above that

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00:09:57,600 --> 00:09:59,860
82, which we just explained that we do,

269
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who makes up that difference?

270
00:10:02,240 --> 00:10:04,240
The district from other sources, and most of

271
00:10:04,240 --> 00:10:07,144
it's honestly from the levy. But there are

272
00:10:07,144 --> 00:10:08,605
other programs that might have

273
00:10:08,985 --> 00:10:11,544
not fully spend it. The indirects that I

274
00:10:11,544 --> 00:10:13,004
talked about from ESSER,

275
00:10:13,544 --> 00:10:15,945
could help pay for that also. Anything any

276
00:10:15,945 --> 00:10:17,084
program that underspends

277
00:10:17,610 --> 00:10:19,450
unrestricted money could help pay for that. They'll

278
00:10:19,450 --> 00:10:21,049
pay for that. If it's restricted, though, they

279
00:10:21,049 --> 00:10:23,129
can't help pay for that, obviously. And so

280
00:10:23,129 --> 00:10:24,929
levies are part of that that will utilize

281
00:10:25,690 --> 00:10:28,330
are part of that. But levies were the

282
00:10:28,330 --> 00:10:31,129
the intent of levies were to be able

283
00:10:31,129 --> 00:10:32,970
to pay for extra programming, things of that

284
00:10:32,970 --> 00:10:33,345
nature.

285
00:10:33,904 --> 00:10:35,745
We you don't normally wanna use the levy

286
00:10:35,745 --> 00:10:36,964
money to make up

287
00:10:37,504 --> 00:10:38,004
salaries.

288
00:10:39,504 --> 00:10:42,384
That is generally true, but there's different philosophies

289
00:10:42,384 --> 00:10:44,704
at different districts, obviously, on the importance of

290
00:10:44,704 --> 00:10:47,125
different things. And so there's some argument

291
00:10:47,690 --> 00:10:50,809
to help supplement different needs with levy money.

292
00:10:50,809 --> 00:10:53,529
But at the highest level, yes, levy money

293
00:10:53,529 --> 00:10:54,029
is

294
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for

295
00:10:55,850 --> 00:10:59,450
additional services beyond basic education. K. Based upon

296
00:10:59,450 --> 00:11:01,450
this model, what is the amount that we

297
00:11:01,450 --> 00:11:02,829
have to make up each year?

298
00:11:04,154 --> 00:11:05,774
This is a rounded number.

299
00:11:07,514 --> 00:11:09,375
So a little bit over $30,000,000

300
00:11:10,075 --> 00:11:12,075
of our levy goes to make up not

301
00:11:12,075 --> 00:11:14,414
just certificated extra salaries, but extra

302
00:11:14,955 --> 00:11:16,095
salaries above,

303
00:11:16,634 --> 00:11:19,440
the prototypical funding for salaries. And once

304
00:11:19,980 --> 00:11:22,379
again, this is not to point out that

305
00:11:22,379 --> 00:11:24,000
teachers get or make

306
00:11:24,379 --> 00:11:26,700
this the the concept Because if I look

307
00:11:26,700 --> 00:11:28,960
close at this, every one of these groups,

308
00:11:29,100 --> 00:11:31,420
the average is higher and we're staffed higher.

309
00:11:31,420 --> 00:11:33,904
Right. Right. Which is the necessity that we

310
00:11:33,904 --> 00:11:36,144
have. Once again, the the purpose of the

311
00:11:36,144 --> 00:11:36,644
questioning

312
00:11:37,185 --> 00:11:40,485
was to bring light when we talk about

313
00:11:41,024 --> 00:11:44,004
in board meetings that the state does not

314
00:11:44,309 --> 00:11:46,090
pay for public education.

315
00:11:46,789 --> 00:11:48,169
For the average person,

316
00:11:48,789 --> 00:11:49,289
that

317
00:11:49,830 --> 00:11:51,990
that does not make sense. They know that

318
00:11:51,990 --> 00:11:54,230
the state pays. They don't know the details

319
00:11:54,230 --> 00:11:55,669
of what that looks like. When we throw

320
00:11:55,669 --> 00:11:57,049
out the term prototypical

321
00:11:57,350 --> 00:11:59,634
model, the average person does not know what

322
00:11:59,634 --> 00:12:01,634
does that mean. So the purpose of the

323
00:12:01,634 --> 00:12:03,735
questions was to bring and marry

324
00:12:04,115 --> 00:12:07,154
the 2 that that the common person can

325
00:12:07,154 --> 00:12:09,235
understand whether it's their own now or they

326
00:12:09,235 --> 00:12:11,554
come back and watch later, that there is

327
00:12:11,554 --> 00:12:14,179
a lot that not just our school district,

328
00:12:14,179 --> 00:12:16,259
but many other school districts have to make

329
00:12:16,259 --> 00:12:17,879
up in all categories

330
00:12:18,659 --> 00:12:21,399
in order to make school work

331
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for students. And most schools, most teachers would

332
00:12:25,139 --> 00:12:27,195
say that that still isn't enough. They would

333
00:12:27,195 --> 00:12:29,434
say they still need more help. Students would

334
00:12:29,434 --> 00:12:31,675
say they still need more help. And so

335
00:12:31,675 --> 00:12:34,235
with that, just wanting the average person to

336
00:12:34,235 --> 00:12:35,915
understand that when we say these terms and

337
00:12:35,915 --> 00:12:38,175
when we say this, that there is a,

338
00:12:39,115 --> 00:12:41,459
due diligence on their part as well as

339
00:12:41,459 --> 00:12:44,279
our part that we demand that the state

340
00:12:44,659 --> 00:12:46,659
step up to the plate so that we

341
00:12:46,659 --> 00:12:49,139
don't have these things where we have these

342
00:12:49,139 --> 00:12:50,200
internal battles

343
00:12:50,580 --> 00:12:51,080
of

344
00:12:51,539 --> 00:12:53,240
we we need more money.

345
00:12:53,834 --> 00:12:55,855
Understand that. We need more money,

346
00:12:56,394 --> 00:12:58,475
you know, on both ends. Right? And so

347
00:12:58,475 --> 00:13:00,235
I just wanted to bring clarity once again,

348
00:13:00,235 --> 00:13:02,475
not to point out any particular group, but

349
00:13:02,475 --> 00:13:05,034
just to really bring reality that a lot

350
00:13:05,034 --> 00:13:06,254
of districts are shortchanged

351
00:13:06,554 --> 00:13:08,940
when it comes to running school. Now there

352
00:13:08,940 --> 00:13:10,860
is more to this presentation, and you can

353
00:13:10,860 --> 00:13:12,960
watch the whole thing by going to bethelsd.org

354
00:13:13,820 --> 00:13:16,300
and clicking on board docs. There, you can

355
00:13:16,300 --> 00:13:17,120
view the presentation

356
00:13:17,420 --> 00:13:20,139
or dissect the 190 page PDF of the

357
00:13:20,139 --> 00:13:22,144
budget itself. I saw you printed that out

358
00:13:22,144 --> 00:13:24,225
this morning. It's light reading. I don't know

359
00:13:24,225 --> 00:13:25,745
about that. Sounds like you might need a

360
00:13:25,745 --> 00:13:28,304
cup of coffee for it. And, Connor, I

361
00:13:28,304 --> 00:13:30,625
wanna talk about coffee. I know you are

362
00:13:30,625 --> 00:13:33,039
quite the Fiend. Go ahead and say it.

363
00:13:33,200 --> 00:13:35,600
Enthusiast is what I was gonna say. Generous

364
00:13:35,600 --> 00:13:37,840
way of saying it. I have 4 coffee

365
00:13:37,840 --> 00:13:40,080
related trivia questions for you to close out

366
00:13:40,080 --> 00:13:42,399
our show today. So we're gonna start out

367
00:13:42,399 --> 00:13:44,480
easy for someone who claims to have lived

368
00:13:44,480 --> 00:13:46,720
in Seattle for a little while. You should

369
00:13:46,720 --> 00:13:48,160
know this right off the top of your

370
00:13:48,160 --> 00:13:49,235
head. When

371
00:13:49,695 --> 00:13:52,335
and where did the 1st Starbucks open its

372
00:13:52,335 --> 00:13:52,835
doors?

373
00:13:54,335 --> 00:13:56,654
That is a good question, which I should

374
00:13:56,654 --> 00:13:58,575
know. I'm gonna say right off the bat,

375
00:13:58,575 --> 00:14:00,335
I don't, but I'm gonna give it an

376
00:14:00,335 --> 00:14:03,394
educated guess. We obviously know it was Seattle.

377
00:14:04,199 --> 00:14:05,019
Pike Street

378
00:14:05,399 --> 00:14:08,620
is gonna be the correct location. That's right.

379
00:14:09,079 --> 00:14:10,860
I I'm gonna say

380
00:14:11,240 --> 00:14:11,740
1989.

381
00:14:14,039 --> 00:14:16,539
89. The same year Taylor Swift was born.

382
00:14:16,745 --> 00:14:18,584
If you say so. I do say so.

383
00:14:18,584 --> 00:14:19,084
Well,

384
00:14:19,544 --> 00:14:21,804
the Starbucks story begins in

385
00:14:23,464 --> 00:14:23,964
1971

386
00:14:24,424 --> 00:14:28,044
Sheesh. Along the cobblestone streets of Seattle's historic

387
00:14:28,345 --> 00:14:31,440
Pike Place Market. That's where Starbucks opened their

388
00:14:31,440 --> 00:14:33,840
very first store. They offered fresh roasted coffee

389
00:14:33,840 --> 00:14:36,899
beans, tea, and spices. They had one employee

390
00:14:37,360 --> 00:14:39,360
at the time. Their name was inspired by

391
00:14:39,360 --> 00:14:42,000
the classic tale Moby Dick evoking the seafaring

392
00:14:42,000 --> 00:14:44,340
traditions of early coffee traders.

393
00:14:44,735 --> 00:14:46,175
So I get half credit for that. Right?

394
00:14:46,175 --> 00:14:47,455
That's all I care about. I'll definitely give

395
00:14:47,455 --> 00:14:48,894
you a 0.5 on that one. That was

396
00:14:48,894 --> 00:14:51,634
not too shabby. Okay. While we're at Starbucks,

397
00:14:52,014 --> 00:14:54,654
let's talk about the most expensive Starbucks coffee

398
00:14:54,654 --> 00:14:57,055
that has ever been ordered. I'm just looking

399
00:14:57,055 --> 00:14:58,289
for a price, and I guess we can't

400
00:14:58,289 --> 00:14:59,649
do price is right rule since you're the

401
00:14:59,649 --> 00:15:01,570
only one playing here. You're you would discuss

402
00:15:01,570 --> 00:15:02,070
$1.

403
00:15:02,690 --> 00:15:05,809
So be within $5 of this most expensive

404
00:15:05,809 --> 00:15:09,509
Starbucks order. So our regular listeners will recall

405
00:15:09,809 --> 00:15:12,549
our new nurse administrator, Angela Radonski,

406
00:15:13,365 --> 00:15:16,004
had a very intricate coffee order at Starbucks.

407
00:15:16,004 --> 00:15:17,924
She did. I'm gonna say she's gotta be

408
00:15:17,924 --> 00:15:19,924
close. She didn't say how much that cost,

409
00:15:19,924 --> 00:15:21,544
but I'm going to say

410
00:15:22,884 --> 00:15:23,384
$15.

411
00:15:24,085 --> 00:15:24,585
$15

412
00:15:25,205 --> 00:15:27,044
is a good guess. I did see some

413
00:15:27,044 --> 00:15:27,544
frappuccinos

414
00:15:28,500 --> 00:15:29,879
upwards of that amount.

415
00:15:30,340 --> 00:15:32,440
The most expensive Starbucks order.

416
00:15:33,299 --> 00:15:34,980
I'm gonna give you 2 actually because the

417
00:15:34,980 --> 00:15:36,899
first one's not that interesting. There was a

418
00:15:36,899 --> 00:15:38,840
guy who ordered a 170

419
00:15:39,299 --> 00:15:42,674
espresso shots with coconut milk, cost a $148.99.

420
00:15:45,615 --> 00:15:48,414
That's wild. That's it seems excessive. Buy an

421
00:15:48,414 --> 00:15:49,394
espresso machine.

422
00:15:50,254 --> 00:15:52,575
The second most costly drink, this one's more

423
00:15:52,575 --> 00:15:54,674
interesting because I actually gave a name, YouTuber,

424
00:15:54,815 --> 00:15:56,514
you knew it was gonna start with that,

425
00:15:56,759 --> 00:15:59,580
Elton Castle ordered a Grande Americano

426
00:16:00,279 --> 00:16:02,540
with a 102 shots of espresso,

427
00:16:03,000 --> 00:16:05,160
caramel drizzle to reduce the bitterness of the

428
00:16:05,160 --> 00:16:08,360
drink, and he and his friends couldn't actually

429
00:16:08,360 --> 00:16:09,915
finish it. It was a $102.15.

430
00:16:11,254 --> 00:16:13,615
So here's where we get into the weeds

431
00:16:13,615 --> 00:16:15,894
a little bit. Love it. Grande is an

432
00:16:15,894 --> 00:16:18,743
actual size. There's an ounce I thought it

433
00:16:18,743 --> 00:16:19,915
was associated with grande.

434
00:16:20,375 --> 00:16:22,774
So you can only fit so many shots

435
00:16:22,774 --> 00:16:25,039
of an espresso in a grande. So is

436
00:16:25,039 --> 00:16:27,199
it really a grande if it fills, you

437
00:16:27,199 --> 00:16:30,399
know, 500 ounces of liquid? That's a great

438
00:16:30,399 --> 00:16:32,159
question. And could he have got it for

439
00:16:32,159 --> 00:16:33,519
a little cheaper if he just ordered a

440
00:16:33,519 --> 00:16:35,679
tall? I'd like a tall coffee with a

441
00:16:35,679 --> 00:16:38,000
100 shots of espresso. That's that's where he's

442
00:16:38,000 --> 00:16:40,339
losing the money. Should've ordered a venti.

443
00:16:40,764 --> 00:16:42,625
There's many issues with this story.

444
00:16:43,004 --> 00:16:45,404
Our final question, on the show, comedians in

445
00:16:45,404 --> 00:16:47,725
cars getting coffee with Jerry Seinfeld, he drives

446
00:16:47,725 --> 00:16:50,304
around with a very famous comedian

447
00:16:50,764 --> 00:16:51,584
on the show

448
00:16:51,884 --> 00:16:54,544
who had his first cup of coffee ever

449
00:16:55,259 --> 00:16:56,240
on that show.

450
00:16:56,620 --> 00:16:59,340
Who was that comedian? Oh, that's interesting because

451
00:16:59,340 --> 00:17:02,700
I have watched many of those episodes, but

452
00:17:02,700 --> 00:17:04,480
I do not recall this.

453
00:17:04,859 --> 00:17:06,859
So this is gonna be just a straight

454
00:17:06,859 --> 00:17:09,204
up guess Love it. Stalling for time

455
00:17:09,605 --> 00:17:11,845
Stalling a little bit. Stalling further. Would you

456
00:17:11,845 --> 00:17:13,765
like a hint? Give me a hint. He

457
00:17:13,765 --> 00:17:16,005
was 63 at the time and had never

458
00:17:16,005 --> 00:17:16,744
had coffee.

459
00:17:17,365 --> 00:17:17,865
Boy,

460
00:17:18,244 --> 00:17:19,524
I'm gonna say

461
00:17:21,269 --> 00:17:22,950
I'm gonna I'm gonna go out and say

462
00:17:22,950 --> 00:17:25,210
Kramer himself, Michael Richards.

463
00:17:25,750 --> 00:17:27,509
That is a good guess. He was on

464
00:17:27,509 --> 00:17:28,250
the show,

465
00:17:28,630 --> 00:17:30,630
but this is not him. It's actually the

466
00:17:30,630 --> 00:17:32,410
one and only Jay Leno.

467
00:17:32,789 --> 00:17:35,784
Wow. Claimed he had never had coffee. He

468
00:17:35,784 --> 00:17:38,025
tried it. He hated it, and Jerry finished

469
00:17:38,025 --> 00:17:39,484
his cup. What a weirdo.

470
00:17:40,904 --> 00:17:42,265
I saw him sit on that desk for

471
00:17:42,265 --> 00:17:44,025
many years with a coffee cup. I don't

472
00:17:44,025 --> 00:17:45,224
know what was in it, but it wasn't

473
00:17:45,224 --> 00:17:47,085
coffee, I guess. Stolen coffee valor.

474
00:17:50,080 --> 00:17:52,400
Well, Connor, that was a fun conversation today.

475
00:17:52,400 --> 00:17:54,320
A little history of coffee and a lot

476
00:17:54,320 --> 00:17:57,039
of school budget talk. I learned a lot

477
00:17:57,039 --> 00:17:57,539
today.

478
00:17:57,985 --> 00:17:59,505
I'm glad I could teach you. We'll be

479
00:17:59,505 --> 00:18:01,845
back next week everybody with another great episode.