MendonUpton Regional School District

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Mendon-Upton Regional School District

• Operating Budget Request
• Fiscal Year 2010

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Agenda

• Educational Funding Overview Implications
• 2010 Budget Summary
• Cost Drivers
• Funding Sources
• Proposed Reductions
• District Comparisons
• Cost Control Measures
• Reduced Budget Impact
• Next Steps / Summary / Q A

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MA General Law Chapter 70School Funds and State
Aid for Public Schools

• Step 1 Foundation Budget
• The foundation budget is the minimum spending
  amount recommended per child under Massachusetts
  law.
• The foundation budget is computed using a
  districts student enrollment and demographics,
  which include grade levels, low income status and
  English language proficiency.
• Each district has its own foundation budget,
  which is typically small districts spend on
  average 118 of their calculated foundation
  budget.

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MA General Law Chapter 70School Funds and State
Aid for Public Schools

• Step 2 Towns Ability to Pay
• A target minimum local contribution is
  established based on a town's wealth (Mendon and
  Upton are calculated separately).
• Two measures of wealth are used
• Aggregate property values
• Aggregate personal income levels
• FY10 foundation budget calculations use 2008
  property values and 2006 income levels.

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MA General Law Chapter 70School Funds and State
Aid for Public Schools

• Step 3 Proportion of State vs. Local Aid
• The target local share and target aid share for
  an individual town will vary in proportion to a
  town's wealth (as determined in step 2).
• The states average spending targets are as
  follows
• State Aid 41 percent (target aid share)
• Local Aid 59 percent (target local share)
• Mendons and Uptons target local share is now
  58-59, matching the state average.

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MA General Law Chapter 70School Funds and State
Aid for Public Schools

• Step 4 Transition to Target Local Share
• Mendon and Upton have historically had a low
  target local share (40), with the state
  providing a high aid share (60).
• That changed with the addition of personal income
  to the formula in 2006.
• Transition factors are used so that the shift to
  target levels will occur gradually over a period
  of several years.

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Implications of Chapter 70 Changes

• The State is gradually decreasing the amount of
  aid it provides to our District, and the Chapter
  70 formula calls for local town contributions to
  slowly increase until target levels (59) are
  reached.
• Local revenues remain constrained by Proposition
  2½ and limited town growth.
• For FY10, the governor is proposing to level fund
  Chapter 70. As a result, the state is not
  providing its legally required minimum
  contribution to our District.

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Regional Transportation Expenses

• Unlike non-regionalized districts, regional
  school districts in MA receive state
  reimbursement for transportation.
• Despite a cost increase of 48,600 for our
  District, FY10 state reimbursement is expected to
  be 112K less than FY09.
• After state reimbursement, the remaining cost of
  transportation is split between the two towns
  based on student population (per the terms of the
  regional agreement).

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Budget Summary Mendon-Upton Regional Schools -
FY09
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Special Education BudgetPersonnel
Non-Personnel Expenses

• FY07 FY08 FY09
• Salaries 2,805,765
  3,298,638 3,467,687
• Out of District Tuitions 787,353
  790,450 1,250,000
• Non-Salary Expenses 1,221,955
  1,117,256 1,322,327
• (i.e. district programs, transportation,
  supplies, consultants)
• TOTAL 4,815,073
  5,206,344 6,040,014
• FY09 actual SPED costs are expected to exceed
  budget by 800K FY10 budget is anticipated
  to be 6.84M (24 of total budget)

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FY10 Level Service Budget Drivers

• Special Education 805,201
• Personnel 757,529
• Health Insurance (projected) 290,113
• Transportation 48,600
• Worcester County Retirement 39,164
• Total Level Service Budget 1,940,607 (7.05)

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Proposed FY10 Budget (3.88)

• FY09 27,511,832
• FY10 28,579,558
• Increase 1,067,726 (3.88)
• Funding needed 187K State/Stimulus
• 697K Towns
  
• 190K School
  District

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Funding Sources - State Aid
Change
FY09 Budget
FY10 Budget
NOTESThe Governors House Bill 1 level funds
Chapter 70 for school districts statewide. The
District is expecting 299,755 from the Federal
Stimulus Package to supplement this Chapter 70
aid and bring the state up to its legal
foundation level.
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Funding Sources Total Contribution -
Upton
FY09 Budget
FY10 Budget
Increase
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Funding Sources Total Contribution -
Mendon
FY09 Budget
FY10 Budget
Increase
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Funding Sources - School District
Contributions/Reimbursements
FY09 Budget
FY10 Budget
Increase
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Percentage of Total Budget From All Sources -
FY10
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FY10 Proposed Budget Reductions from Level
Service

• Personnel (10 positions)
• Consolidation of SPED program (1) 56,000
• Paraprofessionals (4) 95,000
• Administrative Assistants (2) 51,575
• Custodian (1) attrition 50,272
• Food Service (2) 26,663
• Personnel Total 279,510

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FY10 Proposed Budget Reductions from Level
Service

• Expenses
• Retirement Offsets (6) 179,000
• Utilities / Fuel Savings 150,000
• General School Supplies 46,979
• Maintenance Account 46,000
• Athletics (supplies freshmen sports)
  34,000
• Department Supplies (Nipmuc) 31,469
• Stipends (7) 18,536
• Late Bus 3,600
• Expenses Total 509,584

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District Adjustment to Level Service Budget

• Personnel 279,510
• Expenses 509,584
• New Revenue 48,000
• (School Choice 8 _at_ Nipmuc)
• Total 837,094

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FY07 Spending Rankings for all Categories
(1highest, 329lowest)

• Out of 329 districts reporting, our district
  ranks . . .
• Administration 320th
• Instructional Leadership 298th
• Classroom and Specialist Teachers 268th
• Other Teaching Services 300th
• Professional Development 168th
• Instructional Materials 67th
• Guidance Counseling/Testing 244th
• Pupil Services 193rd
• Operations/Maintenance 245th
• Insurance/Retirement 284th
• Out-of District PPEs 155th
• Information source MA DESE Website

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Per Pupil Expenditures9th of 10 comparable
communities (based on income, population and
student enrollment)

• State provided expenditures of comparable
  communities
• DEDHAM 13,157 CANTON 11,105
• HOLLISTON 10,856 ASHLAND 10,599
• GROTON DUNSTABLE 10,284 FOXBOROUGH 9,956
• HANOVER 9,611 MEDFIELD 9,472
• MEDWAY 9,341 MENDON-UPTON 9,194
• NORTH READING 9,049
• MA State Average 11,789
• Information source MA DESE Website

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Mendon-Upton Spends Less than Most Districts
(FY07 MURSD ranked 306 of 331 Districts)
92 of school districts spend more
Mendon-Upton 9194 per student per year
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FY07 Average Teacher Salaries(comparable
communities MURSD ranked last)
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Student to Instructional Personnel Ratio (not
class size)In FY07, MURSD ranked last of 10
comparable communities
Dedham 13.0 Hanover 13.0 Holliston
13.4 Foxborough 14.5 Ashland
14.9 Medway 14.9 Medfield 15.1
Canton 15.4 Groton-Dunstable 16.0 North
Reading 16.4 Mendon-Upton 19.0 Information
source MA DESE Website
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Federal Economic Stimulus Assistance

• The American Recovery and Reinvestment Act (ARRA)
  of 2009 will provide funds to the school district
  through
• Existing education grants to states
• General funds to support state fiscal
  stabilization
• Funds made available under existing federal
  grants can only be used by eligible districts for
  specified purposes.
• The District expects to receive 299,755 of
  Federal stimulus assistance to supplement the
  level Chapter 70 funding.

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District Cost Control Measures

• Acquired a grant from National Grid to retrofit
  the schools with new lighting and to reduce
  energy costs. Pursuing additional opportunities
  with local power company.
• Negotiating with the bargaining unions across the
  district to find creative solutions to reduce
  impact of payroll increases.
• Negotiated greater health insurance cost sharing
  with employees and opened discussions with the
  towns to reduce health insurance costs.
• Conducting transportation audit and investigating
  other cost sharing opportunities with other
  districts.
• Increasing our choice population at the high
  school.
• Under a grant from MUEF, providing grant writing
  instruction to staff in order to bring additional
  funds to the district.

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What if requested funding isnt received?

• Mendon Finance Committee has suggested a funding
  increase of 89,010 over FY09 levels.
• The corresponding Upton FY10 contribution would
  decrease from FY09 by 14,548.
• Overall District budget 451,645 (1.64)

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Impact of Reduced (1.64) Budget

• 38 additional District employees would be
  impacted through a combination of cuts and
  reduced work hours
• 17 District employee positions would be cut
  (11 professionals and 6 para-professionals)
• Remaining 21 employees would have reduced work
  hours

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Its Not All Bad News...

• Curriculum Guides (PreK-12) assembled
• K-5 Math program implemented (Investigations)
• MCAS Top 10 in states 10th grade test
• Standards Based Elementary Report Card
• Alert Now Communication System
• IPASS Student Information System
• Grade alignment transition going smoothly
• Met AYP (Adequate Yearly Progress) in all
  schools, all areas
• 2008 four year Graduation Rate 95.3 (24th best
  in states public schools)
• Updated District Web Page
• Energy Savings Initiative (National Grid)

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Where Do We Go From Here?

• Monitor status of stimulus funds counting on
  300K
• Monitor towns contributions
• Prioritize list of additional cuts (if needed)
• NOTE Additional cuts WILL impact the
  administration and teachers
• Continue to look for options to reduce costs
  through
• Collaboration
• Regionalization
• Grants
• Reminders
• Stimulus funds are short term
• State will continue to push towns to 59 local
  contribution level
• Translation Its not going to get any better in
  the future!

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Summary

• School District is asking the towns to meet
  minimum local contribution increase (3.88 budget
  increase)
• If 3.88 budget is not achieved, additional cuts
  will be needed
• Reminder last year the District cut 10
  positions, half of them classroom teachers
• Budget will change between today and town
  meetings
• School Committee will monitor funding sources
  between today and both town meetings to determine
  a final budget for ratification by voters more
  communications will follow

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FY10 Budget

• Questions?
• Thank you for your support for
• Mendon-Upton Regional Schools!

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Backup Info

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Per Pupil Expenditures(comparison communities)
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07 Comparison Community Data