Mendon & Upton Target Share:Implications of an Override

April 6, 2015

Target Share

• Staring in 2007, the State established a new funding formula… one where a greater burden for financing PK-12 education would be on municipalities

• Target Share: establishes a goal of how much (%) each municipality should contribute to school budgets, based upon two factors-

Aggregate property values Aggregate personal income levels

> MRGF Aggregate property values Aggregate personal income levels

Target Share has been STABLE

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY1620.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

MendonUpton

• However, since 2007, both Mendon & Upton have been funding the school budget below the Target Share

Minimum Local Contribution• Based upon Target Share goal• Determined by enrollment & MRGF (Municipal Revenue

Growth Factor)

Town Target Share for FY16

Increase in MLC for FY16

Actual Share Once MLC is Met

Distance from Target Share- FY16

Mendon 65.60 % $336,363 60.61% -4.99 %

Upton 64.85 % $271,599 59.17% -5.65 %

FY16 MRGF: Mendon: 4.86 % Upton: 4.11%

Lines for Local Assessments

Min. Local Contribution Increase vs. Actual Contribution Increase from Mendon

FY13 FY14 FY15 FY16$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

MLC Increase Actual Mendon Increase

The 4-year cumulative shortfallwould be

$406,442

Mendon Funding w/No Override

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Increase in MLC Operational Additional

What this Translates To:• $1.4 M in Cuts for FY16• The Loss of ~20 FTE Positions• Class Sizes @ 26-30 at All Levels• Loss of Elective Opportunities @ the Secondary

Level• Less Supports (Academic/Social/Emotional) for

Students• Increased Fees for Athletics/Extracurriculars• Downward Spiral for the MURSD

Mendon Funding w/ FY16 Override

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Increase in MLC Operational Additional

What this Translates To:• MURSD Strategic Plan is Supported/Goals are

Realized• Level Services/Programming Sustained• Class Sizes Average 20-22 @ All Levels• More Supports for Students Who Need Them• Reduced/Eliminated Fees for Athletics/Extra &

Co-curriculars• Sustainability for 4-5 Years

Min. Local Contribution Increase vs. Actual Contribution Increase from Upton

FY13 FY14 FY15 FY16$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

MLC Increase Actual Upton Increase

The 4-yearcumulative shortfallwould be

$453,717

Upton Funding w/No Override

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Increase in MLC Operational Additional

Upton Funding w/FY16 Override

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Increase in MLC Operational Additional

Conclusions

• The Mendon driver formula (half of 2 ½ increase, half of new receipts) will not meet the district’s needs for FY16

• This formula does not meet the MLC- and the cumulative effect is creating a deficit

• Without an override, by FY18 the Operational Additional in each town will not even meet the MLC

Conclusions

• If a FY16 override fails, the district will make numerous cuts… and the FY17 Budget request will no doubt include override requests to rebuild the district

• Passage of the FY16 override is a smart investment for the coming school year and beyond as it builds the Operational Additional to sustainable levels