Mendon-Upton Regional School District

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Mendon-Upton Regional School District

• Operating Budget
• Fiscal Year 2010

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Agenda

• Impact of Chapter 70 Funding Changes on Budget
• FY10 Budget Overview
• Recent Reimbursement Reductions / Consequences
• Cost Control Measures
• District Comparisons
• Help Needed / Call to Action
• Questions / Answers

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MURSDs FY10 Foundation Budget

• Foundation budget is used to calculate
• Amount of aid provided by state
• Minimum required funding amounts for Upton and
  Mendon
• - Average state aid 9659/pupil
• - State aid to MURSD 8559/pupil

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

• Transition to target local share means the state
  will reduce its share of aid each year and
  require greater local contributions.
• Historically Mendon and Upton have contributed a
  low target local share (40-45), with the state
  providing a higher aid share (55-60).
• Within a few years Mendons target 59.4
  Uptons target 58.5
• Transition factors are used so that the shift to
  target will occur gradually over many years.
• For FY10 the state contributed55 vs. 57 in
  09 (of the foundation amount, not the total
  budget needs).

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Implications of Chapter 70 Formula Structural
Deficit for MURSD

• MURSDs foundation budget is 1100 less per
  pupil than the state average.
• The State is gradually decreasing the amount of
  aid it provides our District, and local town
  contributions will slowly increase until target
  levels (59) are reached.
• Local revenues remain constrained by Proposition
  2½ legislation and limited new growth.
• Expenses are rising faster than revenues future
  budgets will continue to be constrained.

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Impact on FY10 Budget

• Towns passed three overrides (FY03, FY04, FY08)
  to support the school district.
• In past years this override money has been set
  aside for the school district after meeting the
  mandated increase in town contributions.
• Over 50 of prior override dollars are being used
  in FY10 to meet each towns minimum local
  contribution increase transportation costs.
• In the near future, prior override money will be
  consumed by the mandated minimum local
  contribution target increase.
• Both Mendon and Upton will need to identify other
  funding sources to meet the mandated minimum
  contribution once prior override money is
  consumed.

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FY10 MURSD Budget Timeline

• Budget was certified in March 45 days prior to
  first annual town meeting in either town
• Each towns funding amount was approved in early
  May at the annual town meetings
• State budget wasnt finalized until late June
• Reductions in state aid were realized after
  budget was certified.
• IMPACT additional cuts were needed
• No longer have sufficient ED account (free cash)
  to make up for these reductions

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FY10 Level Service Budget Drivers

• Special Education 805,201
• Personnel 757,529
• Health Insurance 200,000
• Transportation 48,600
• Worcester County Retirement 39,164
• If we maintained all services from FY09 into
  FY10,
• the budget increase would be 1.94 million

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FY09 vs. FY10 Certified Budgets

• We actually cut 2million in personnel and
  services. Actual budget totals
• FY09 27,511,832
• FY10 27,421,232
• Difference -90,600

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Summary of FY10 Budget Adjustments vs. FY09

• Personnel (18 positions) 727,510
• Expenses (all areas) 878,765
• New Revenue 387,000
• (IDEA Grant, additional School Choice)
• Total 1,993,275

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Other Aid Reductions that Occurred After
Certifying the FY10 Budget

• Regional transportation reimbursement funds from
  the state continue to be reduced
• - FY10 reimbursement is 278,090 vs. 762,235
  in FY09
• Special Education costs continue to rise, while
  state and federal reimbursement rates decline
• - FY10 reimbursement is 403K vs. 581K in FY09

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Regional Transportation Reimbursement Trend
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Special Education Budget TrendsPersonnel
Non-Personnel Expenses

• FY07 FY08 FY09
• Salaries 2,805,765
  3,298,638 3,467,687
• Out of District Tuition 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 Budgeted 4,815,073
  5,206,344 6,040,014
• Each years actual SPED costs exceeded the
  budget
• FY10 budget is 6.53M (24 of total budget),
  with unanticipated increases already driving
  this number up

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Circuit Breaker Reimbursement Trend (for
Out-of-District Special Education costs)
Reimbursements have not kept up with expenses.
NOTE Additional IDEA reimbursement of 170K in
FY10 will supplement Circuit Breaker
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Most Recent Reimbursement Reductions Requiring
Action

• Regional Transportation (281,910)
• Circuit Breaker (147,381)
• Vision, SPED Tuition, Interest (217,000)
• Total (646,291)

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Consequences of Recent Reimbursement Reductions

• Professional Development 2 Day Reduction
• Teachers (141,096) Administration (7530)
• Additional Reductions
• 6 Aides
• 1 Custodian (retirement)
• 1 Technology Teacher
• Many other line item budget adjustment
• Revenue Offsets School Choice, health care
  reduction, Medicaid, etc.

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District Cost Control Measures

• Acquired a grant from National Grid to retrofit
  the schools with new lighting fixtures, motion
  sensors and to reduce energy costs.
• Acquired a grant from ANP Bellingham Energy Co.
  to furnish and install electric hot water heaters
  at no cost to the District in 3 schools.
• Negotiated greater health insurance cost sharing
  with employees.
• Conducted transportation audit and investigating
  other cost sharing opportunities with other
  districts sharing special education
  transportation services and personnel sharing
  with neighboring town (Hopedale). Looking to
  bring additional services in-house.
• Increased our school choice population at Clough
  and Nipmuc.
• Under a grant from MUEF, provided grant writing
  instruction to staff in order to bring additional
  funds to the District.

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FY08 State Rankings (1highest, 323lowest)

• Per Pupil Expenditures
• Overall 284th (10,007 vs. 12,496 state avg)
• Administration 314th
• Instructional Leadership 293rd
• Classroom and Specialist Teachers 247th
• Other Teaching Services 292nd
• Professional Development 177th
• Instructional Materials 48th
• Guidance Counseling/Testing 201st
• Pupil Services 201st
• Operations/Maintenance 218th
• Insurance/Retirement 280th
• Out-of District PPEs 120th
• Staffing
• Student to Instructional Personnel Ratio 258th
• Information source MA DESE Website

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Mendon Upton Regional School District
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Enrollment Increase

• From 1999-2009, Massachusetts overall student
  enrollment dropped by 0.5.
• Of 330 districts reporting, MURSD ranked 1 in
  state in enrollment growth at 56.4!
• Increase in enrollment has driven a need for
  budget increases.

Information sourcehttp//www.doe.mass.edu/boe/doc
s/1009/item8_percentchng.xls
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Summary

• In FY09, school district cut 10 positions, half
  of them classroom teachers
• For FY10 budget, another 18 positions were cut,
  including five classroom teachers
• Most recent cuts 8 positions, including one
  teacher
• Budget will be much more challenging in FY11
• Education costs are rising faster than what Prop
  2½ can support result a structural deficit
• School Committee will continue to work with town
  and state officials on future funding and cost
  reduction opportunities

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Help Needed

• Restore regional transportation reimbursement to
  gt80 level wheres the incentive to
  regionalize?
• Better control of out-of-district Special
  Education cost increases
• Out-of-district costs can sometimes approach as
  much as 300K due to medical needs
• Any perspective on additional 9C cuts during the
  remainder of FY10?
• Any insight into Chapter 70 and/or stimulus
  funding to expect for FY11 budgeting purposes?
• What happens if towns cant meet state mandated
  minimum contribution?

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• Thank You
• Rep. John V. Fernandes
• Senator Michael O. Moore
• Senator Richard T. Moore
• Rep. George N. Peterson, Jr
• For advocating for the restoration of full
  transportation reimbursement and for your efforts
  to develop a education resource study

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FY10 Certified BudgetPersonnel Reductions (18
positions)

• Consolidation of SPED program (1) 56,000
• Paraprofessionals (4) 95,000
• Administrative Assistants (2) 51,575
• Custodians (2) 90,272
• Food Service (2) 26,663
• Financial Officer 108,000
• HS Asst. Principal 70,000
• SPED Aide 25,000
• Professional Staff (4) 205,000
• Personnel Total 727,510

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FY10 Certified BudgetExpense Reductions

• Retirement Offsets (6) 179,000
• Utilities / Fuel Savings 150,000
• General School Supplies 46,979
• Maintenance Account 46,000
• Athletics (supplies) 34,000
• Department Supplies (Nipmuc) 31,469
• Stipends (2) 8,536
• Late Bus 3,600
• Adjust Paraprofessional Hours 80,000
• SPED Transportation Collaborative 75,000
• Reduce Health Care co-pay line item 20,000
• Health Care (lower anticipated increase)
  90,000
• SPED out-of-district reductions 96,000
• Security 9,000
• Attendance Services 11,000
• Expenses Total 878,765

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FY10 Certified BudgetRevenue Increases

• Federal Stimulus (IDEA Grant) 273,000
• IDEA Grant annual increase 30,000
• 8 Additional Choice at Nipmuc 48,000
• 6 Kindergarten Choice at Clough 36,000
• Revenue Increase 387,000

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MURSDs FY10 Foundation Budget
State avg 9659
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Mendons Target Local Share
Target Local Share
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Uptons Target Local Share
Target Local Share
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Percentage of Total Budget From All Sources -
FY10
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Per Pupil Expendituresvs. comparable communities
(FY08) (based on income, population and student
enrollment)

• DEDHAM 13,893 ASHLAND 11,332
• CANTON 11,324 HOLLISTON 11,217
• GROTON DUNSTABLE 10,790 FOXBOROUGH 10,542
• HANOVER 10,121 MENDON-UPTON 10,007
• MEDFIELD 9,957 NORTH READING
  9,908
• MEDWAY 9,714
• MA State Average 12,496
• Information source MA DESE Website (comparable
  communities selected by DESE)

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Student to Instructional Personnel Ratio (not
class size)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 (FY07 most recent data
available)
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Budget Summary Mendon-Upton Regional Schools -
FY09
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Prioritized Capital Needs

• 1. Boilers Miscoe Hill (200,000)
• Boilers are over 20 years old one was repaired
  last summer.
• We estimate that they are running at 50
  efficiency.
• When the temperature reads zero degrees
  Fahrenheit or below the boilers use 500 gallons
  of oil per day.
• Our request to replace the boilers isnt to
  necessarily save on oil --- the boilers are
  simply deteriorating.
• 2. Water Supply Miscoe Hill (100,000)
• The well is approximately 350 feet deep, and is
  located in the boiler room, making it difficult
  to access for repairs.
• The yield of water is becoming less and less each
  year.
• The bottom of the well continues to build-up with
  rocks and other debris from the veins, which is
  contributing to a reduced yield and longer time
  to recover. The water is generally brown and
  rusty.
• A filter system was installed recently, and it
  needs to be cleaned regularly to allow the water
  to run into the school's storage tanks.
• The gallon per day (GPD) demand is increasing due
  to a larger student population. When school is in
  session we use 2,000 gallons per day.
• On a number of occasions over the past couple of
  years the school lost water.

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Prioritized Capital Needs (cont.)

• 3. Hot Water Tanks Nipmuc (80,000)
• The two tanks are 12 years old. The normal life
  expectancy is 10 yrs.
• They are corroding and the inner lining is
  breaking apart and going through our water
  supply, causing the water to become discolored.
• They are not just storage tanks. They have their
  own fuel source to heat the water.
• Each tank holds 600 gallons of water.
• We cannot replace the lining of the tanks. They
  are deteriorating.
• We would prefer electric nickel plated lining
  tanks equipped with a timer. This system has a 20
  year life expectancy.
• Weve determined that with a newer system we
  would most likely not need 600 gallon tanks, thus
  reducing the estimated cost.
• 4. Roof Repair Miscoe (250,000)
• The roof at Miscoe leaks in a number of sections.
  A number of areas are very spongy or brittle and
  others where tar patches are separating from
  previous repair work.
• The total square footage of the roof is
  approximately 143,000 square feet.
• We need to replace 100,000 square feet of the
  roof.
• We need to replace the white portion which is
  constructed from PVC.
• The total replacement would include a rubber roof
  with insulation applied under the rubber coating.

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Prioritized Capital Needs (cont.)

• 5. Back-up generator Miscoe (200,000)
• Miscoe is the only school without a back-up
  generator system. This is a concern, given that
  this site is used as an emergency shelter by the
  town of Mendon. It is also a concern for the day
  to day operation should we lose power.
• A generator is needed to operate the normal life
  support systems such as water, refrigeration,
  essential lighting, heat and sewer discharge in
  the event that we lose power.
• A 200 amp generator would be needed.
• Unsure at this time of any potential grant
  opportunities.
• 6. Energy Control System - Miscoe Hill (400,000
  estimate).
• Miscoe currently has an antiquated fifty year old
  system that is air driven. It is in constant need
  of repair. The purpose of a control system is to
  regulate heat and circulate outdoor air
  throughout the school. The other schools have
  more modern computer driven control systems.
• 7. Energy Management System (HVAC - Nipmuc)
  (100,000).
• This is a computer driven system (unlike Miscoe),
  and is not the entire management system. It is
  currently working, but it is not as efficient as
  it should be and parts are being more difficult
  to replace due to its age.

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Capital Needs Summary

• Miscoe Hill School Sub Total 1,150,000
• Nipmuc School Sub Total 180,000
• TOTAL 1,330,000
• MSBA Statement of Interest filed for Miscoe Hill
  renovations on Nov. 13, 2009.

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

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Direct Special Education Expenditures as a
Percentage of School Budgets, FY98 to FY08