Sutton Public Schools’ Budget: A Conservative Approach

Educate the Sutton community on the annual budget process

Provide a five year overview

Provide the Sutton community with an opportunity to ask questions regarding the budget

Seek community input on next steps

Goals for this Meeting:

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Actual School Spending2011-2015

Total Increase between 2011-2015:$913,454 (6.2%)

School Committee Actual

FY2011 FY2012 FY2013 FY2014 FY2015

14,696,401 14,721,802 14,618,597 15,035,973 15,609,855

3

Mandated Special EducationCosts Continue to Escalate

Total Actual Increase between 2011-2015:

$1,096,221 (37%)

*Anticipated Increase for 2016:$223,645

ActualsFY2011

ActualsFY2012

ActualsFY2013

ActualsFY2014

ActualsFY2015

Anticipated FY2016

Instruction: Special Education

2,437,588 2,919,310 3,097,078 3,244,458 3,364,625 3,449,889

Out of District Tuition

560,413 528,110 645,436 647,065 729,597 867,978

TOTAL2,998,00

13,447,42

03,742,51

43,891,52

34,094,22

24,317,867

*

4

FY2016 Budget by Major Spending Areas

5

Central Office3%

Instruction70%

Transportation/Health Services

11%

Operations/Maintenance

11%

Tuitions Out5%

FY2016 Budget

On a $15,000,000 budget, approximately $12,000,000 represents personnel

One percent of increase equals $120,000

On average, total salaries have increased annually approximately $250,000 to $400,000

Exception: Union concession delayed pay increase for 91 days in 2013

Restructure of health care benefits in 2014 and 2016 allowed increased funding from the town in excess of $400,000

Staff Accounts for Approximately

80% of the Budget

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Revenue Sources

Actual FY2011 FY2012 FY2013 FY2014 FY2015Anticipate

dFY2016

Chapter 70State Aid

5,075,229 5,102,475 5,163,355 5,201,680 5,239,230 5,276,480

TownContribution

7,801,554 7,801,544 7,834,014 8,359,014 8,660,014 9,100,393

OtherFundingSources

1,819,618 1,817,783 1,621,228 1,475,279 1,710,611 1,791,221

TOTAL14,696,40

114,721,80

214,618,59

715,035,97

315,609,85

516,168,09

4

ActualIncrease

25,401 (103,205) 417,376 573,882 558,239

0.2% -(0.7)% 2.9% 3.8% 3.6%

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Chapter 70 is the Commonwealth’s School Funding Statute

A district’s Chapter 70 aid is determined in three basic steps:

1. It defines and calculates a foundation budget, an adequate funding level for each district, given the specific grades, programs, and demographic characteristics of its students.

2. It then determines an equitable local contribution, how much of that “foundation budget” should be paid for by each city and town’s property tax, based upon the relative wealth of the community.

3. The remainder is funded by Chapter 70 (c70) state aid.

Chapter 70:The State’s Wealth Based Funding Formula

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A report by MassBudget gathered data from the state’s 328 operating districts and analyzed key trends found across each.

The study found that most districts hire far fewer regular education teachers than the foundation budget sets as the adequate number. The education funding formula does not reflect increased health insurance and special education costs, forcing most districts to compensate with funds that would have supported hiring regular education teachers.

The foundation budget estimate of statewide district spending on special education and health insurance falls short by over $2 billion.

The Underfunding of Chapter 70

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Chapter 70/State Aid

Total Increase in Chapter 70 Funding from 2011–2015:

$164,000(3%)

Less than 1% per year

*Anticipated Increase in Chapter 70 Funding for 2016:$37,250

NOTE: In 2008, Sutton received $5,245,542 in Chapter 70 Funding.

Actual Funded FY2011 FY2012 FY2013 FY2014 FY2015

Anticipated

FY2016

Chapter 70 5,075,229 5,102,475 5,163,355 5,201,680 5,239,230 5,276,480*

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Town Contribution

Total Increase in Town Contribution from 2011–2015:

$858,460 (11%)

Virtually all of the increases have occurred over the last two years, in part, due to health care concessions by all town employees.

*Anticipated Town Contribution for 2016:$440,379

Actual Funded FY2011 FY2012 FY2013 FY2014 FY2015

Anticipated

FY2016

Town Contribution

7,801,554 7,801,544 7,834,014 8,359,014 8,660,014 9,100,393*

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Town Contribution vs Chapter 70

FY11 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 4,500,000

5,000,000

5,500,000

6,000,000

6,500,000

7,000,000

7,500,000

8,000,000

8,500,000

9,000,000

9,500,000

Chapter 70

FY14 & FY16 – restructure health insurance and will continue

Town Contribution

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Actual Spending From Revolving Accounts

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Actuals

FY2011

Actuals

FY2012

Actuals

FY2013

Actuals

FY2014

Actuals

FY2015

Budget

FY2016

Lunch 33,436 33,926 34,588 22,363

Tuition 150,000 150,450 90,000 60,905 60,000 7,000

Athletics 5,206 11,205

Building Use 10,000 275

School Choice 316,848 556,879 547,356 289,687 536,415 438,272

Preschool 40,000 40,000 50,000 50,000 50,000 70,000

Sports Fees 85,000 85,000 105,000 99,386 111,200 141,300

After Care 92,607 103,215 89,081 100,000 100,000 140,000

Circuit Breaker

161,122 178,288 199,000 339,172 255,573 360,000

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Revolving Accounts (cont’d)Actual

sFY201

1

ActualsFY2012

ActualsFY2013

ActualsFY2014

ActualsFY2015

BudgetFY2016

Parking Fees

9,000

Summer Camp

10,000

Gifts & Donations

17,225 10,740

Bus Fees 60,655 60,655 60,655 61,000 90,000 115,000

TOTALREVOLVIN

G949,668

1,208,413

1,175,680

1,022,788

1,225,619

1,312,517

Grants

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Actuals

FY2011

Actuals

FY2012

Actuals

FY2013

Actuals

FY2014

Actuals

FY2015

BudgetFY201

6

Kindergarten 69,900 55,600 46,050 45,850 42,037 41,680

Title I 40,000 38,336 35,132 53,761 70,910 69,000

EarlyChildhood

16,129 17,712 17,674 17,284 17,652 17,000

Spec. Ed.Allocation

332,266 349,822 346,692 335,596 332,991 328,000

TeacherQuality

21,402 23,024

ARRA 196,067

ARRA EarlyChild

3,820

SFSF 27,246

Jobs Bill 184,522 147,900

TOTAL GRANTS

869,950 609,370 445,548 452,491 484,992 478,704

TotalRevolving Accounts & Grants

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ActualsFY2011

ActualsFY2012

ActualsFY2013

ActualsFY2014

ActualsFY2015

BudgetFY2016

TOTALREVOLVING ACCOUNTS

949,668 1,208,413 1,175,680 1,022,788 1,225,619 1,312,517

TOTALGRANTS

869,950 609,370 445,548 452,491 484,992 478,704

TOTALREVOLVIN

GACCOUNT

S & GRANTS

1,819,618

1,817,783

1,621,228

1,475,279

1,710,611

1,791,221

Restructured the middle school

Restructured high school

Concessions in negotiations with the two unions, STA and SESA

Reduced staffing

Increased sports fees

A variety of other cost cutting measures

Increased the use of one-time revolving funds, which have now been nearly depleted

Strategies Used to Balance Budget

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FY2011–FY2016Professional Staff Reductions

Professional Staff Reductions

FY2011-FY2012 9.0 FTE

FY2013 5.0 FTE

FY2014 6.8 FTE

FY2015 1.0 FTE

FY2016 2.2 FTE

24.0 FTE

Using an average salary of $50,000 x 24 positions equals a reduction of 1.2 million

dollars.18

Enrollment Trend

2005 2010 2011 2012 2013 20140

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Enrollment Trend by Grade Span

9-12

7-8

K-6

Pupi

ls

1,5871,520

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1,663

2015-2016 Average Class Size

Grade Level Total Students

Average Class Size

Grade K 83 21

Grade 1 102 26

Grade 2 93 23

Grade 3 115 23

Grade 4 109 22

Grade 5 130 26

Grade 6 121 24

Grade 7 123 24

Grade 8 118 24

Grade 9 114 19

Grade 10 114 19

Grade 11 101 19

Grade 12 115 19

TOTAL STUDENTS:

1,438

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Projection of Kindergarten students in FY2017 is 80.

Breakdown of Budget Projection

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FY2017 FY2018 FY2019

Total Salary Increase 364,000 408,000 377,000

Total Expense Increase 66,000 116,000 136,000

430,000 524,000 513,000

Projection Assumptions:

• Estimated contract negotiations• Actual contract increases• Expenses increase 1%• Estimated Special Education

tuition

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New Foreign Language Teacher 50,000

Visual Media Teacher (TV Studio) 50,000

General Supplies to 2015 levels 50,000

Textbooks (Annual $100K Budget) 55,000

Additional Academic Support (SCEL & ELEM)

100,000

Eliminate Fees (Sports, Buses) 220,000

TOTAL 525,000

Items to Consider

FY2017–FY2019 Projectionsfor Level Services

FY2017 FY2018 FY2019

ProjectedBudget Increase 430,000 524,000 513,000

Projected Loss of One Time Revenue 300,000 100,000 5,000

Estimated Funding Increase Required 730,000 624,000 518,000

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Cannot count on substantial increases from state or federal government

The only direct way to eliminate the budget gap is through local funding, or

A proposition two and half override

For every $100,000 of override spending, the average single family property* real estate tax would increase approximately $26

$500,000 override = increase approx. $130$1,000,000 override = increase approx. $260

Future Funding Gap: How to Solve

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*Using $325,186 as the average single family property value.

Without a solution, services will continue to be cut.

Future Funding Gap: How to Solve

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Continue to fine tune budget projections throughout year

Meeting with Fincom

Continue to work with Town

Acquire clear revenue projections from Town and State

Hold additional informational sessions

Next Steps

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Questions?

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