Monomoy Regional School District

Recommended FY15 Budget

PUBLIC HEARING

S C O TT C A R P E N T E R , S U P E R I N T E N D E N TKAT H L E E N I S E R N I O, B U S I N E SS M A N A G E R

F E B R UA RY 2 6 , 2 0 1 4

The “Promise of Monomoy”

Regionalization is delivering:• Improved curricula,• Expanded opportunities, • Enhanced educational

experiences of our children, and • Lower school expenditures, than

if the towns continued to operate schools independently, providing savings to our towns and citizens.

Curricular Improvements, Expanded Opportunities, and Educational Enhancements

Teaming of core academic teachers grades 5-8 Expanding World Language through Mandarin beginning in middle

school Adding an Enrichment/Gifted & Talented program in the middle school

to ready for additional academic challenge at the high school level Providing a Middle School Math Specialist position to bolster math

pedagogy and student achievement Imbedding computer technology proficiencies, beginning in elementary

school, to enable students to express understanding and creativity through words, data analysis, presentations, images, and video

Expanding the Advance Placement program to include up to 20 courses, including all AP courses currently offered in Harwich High and Chatham High, along with adding select AP courses in Physics, Economics, World Languages and the arts.

Developing a curricula at the high school level that provides “high tech” electives, including computer programming, game design, web technologies and media/film courses

Adding boys and girls lacrosse, beginning in middle school, and 8th/9th grade teams in many sports at the high school level

Reductions from FY14 Staffing

Positions cut from combined middle school and high school staffing:

• 2 Principals• 2.5 Administrative Assistants• 1 Library Assistant• 1 Custodian• 3 Cafeteria staff • 1 School Nurse• 9.8 Teachers

Total staff reduction -20.3 FTE

Additions Beyond FY14 Staffing

Mandarin teacher +1.0 FTE This position will be split between the middle and high school. This additional

curricular opportunity is being made available for Monomoy students by reducing two teachers in other World Languages

District-Level DESE Reporting Support +0.5 FTE Providing clerical staffing to keep the district in compliance with required

state educational reporting that is required throughout the year

Intensive Special Needs teacher +1.0 FTE Allows the district to provide special education supports for children with

significant special needs, rather than exposing the district to more costly out-placements

ELL Teachers +2.0 FTE Required by Federal laws to provide equity and appropriate education for

children who are English Language LearnersThese 4.5 FTEs are included in the Recommended FY15

Budget.

Staff Reduction

The are 15.8 FTE fewer Monomoy staff in this recommended FY15 budget.

Middle School Reductions -12.05 FTEHigh School Reductions -8.25 FTEAdditions +4.5 FTE -15.8 FTE

This is in addition to 10 FTE in staff reductions during the present and previous fiscal years as the central office consolidated, athletic programs merged, and positions were eliminated through an early retirement incentive.

25.8 FTE total staff reduction through regionalization, allowing the district to reduce costs, while concurrently improving curricula, educational program, and opportunities for children.

Foundation Enrollment

Monomoy’s assessment to each town is based on a three-year rolling average enrollment, published by DESE, of all children towns are financially responsible for educating – this includes children attending charter school or who choice out of the district. Changes in enrollment also impact transportation reimbursement from the state and how each town is assessed for school debt.

The three-year rolling average is 27% Chatham and 73% Harwich.

Enrollment at the lower grade levels suggests that Chatham’s contribution to the three-year rolling average will slightly drop in the upcoming years.

Pre-K K 1 2 3 4 5 6 7 8 9 10 11 12 SPED+

0

20

40

60

80

100

120

140

160

180

Monomoy Enrollment 2013-2014

Choice-In

Harwich

Chatham

Grade

Nu

mber

of

Ch

ildre

n

Monomoy Regional SchoolsPreK-12 total enrollment is 1,903 and is expected to be stable in FY15.

24% of Monomoy’s resident students come from Chatham. 76% from Harwich.

Harwich & Chatham Children Not Attending Monomoy

High quality school programs benefit students and saves tax dollars by keeping children in their home district.

K 1 2 3 4 5 6 7 8 9 10 11 120

10

20

30

40

50

60

The Impact of Competition on Monomoy’s Budget (FY14)

Choice-OutCharter

Grade

Har

wic

h an

d Ch

atha

m C

hild

ren

Enro

lled

in C

hart

er &

Cho

ice

The 254 children living in Harwich and Chatham opt for Charter Schools or choice out to other schools. This costs Monomoy $1,870,328 in tuition.

FY15 Budget Summary

• Third budget for the new regional school district, but the first fully regional budget

• Includes 15.8 FTE staff reductions

• Includes program enhancements and increased student opportunities

• Monomoy Regional Total Budget, excluding debt, is $33,874,562 (0.7% increase over FY14). This is offset by School Choice and Circuit Breaker funds totaling $3,233,564.

• The total General Fund Budget, excluding debt, is $30,640,998, a 0.2% decrease from FY14

• Chatham’s Assessment is $7,937,528, including debt

• A 4.2% increase over FY14

• Excluding debt, this is a 4.2% increase over the prior year before applying the FY14 Minimum Contribution adjustment

• Harwich’s Assessment is $20,495,488, including debt

• A .78% increase over FY14

• Excluding debt, this is a 1.6% decrease over the prior year, before applying the FY14 Minimum Contribution adjustment

FY15 Budget Development Process

• July-December – develop budget with school administrators

• December 6 – FY15 Draft budget provided to both towns

• Initial Budget Sharing and Continual Development:

• MRSC Budget Subcommittee (January 3 & 6)

• Regular Finance Team meetings with Monomoy Superintendent and Monomoy Finance Director and both town’s Town Managers and Finance Directors (October 9, December 5, January 29)

• Draft Budget Presentations:

• Harwich BOS – January 6

• Chatham BOS – January 7

• Monomoy Regional School Committee – January 8

• Continued Budget Refinement

• MRSC Budget Subcommittee (February 5 & 24)

• Refined Draft Budget Presentations

• Chatham FinCom – February 6

• Monomoy Regional School Committee – February 12

• Meetings with Harwich Town Manager and Finance Director – February 13

• Meeting with Chatham Finance Director (Feb. 14) and Town Manager (Feb. 21)

• Budget Forum, followed by Monomoy Regional School Committee meeting – February 26

• Final Budget Approval by Monomoy Regional School Committee – March 12

FY15 Budget Challenges

• District is finally merging into its four-school configuration• Chatham Elementary, Harwich Elementary, Monomoy Regional Middle

School, and Monomoy Regional High School

• Transitional Costs• Creating a cohesive Central Office

• Move expenses

• Negotiations• Monomoy Regional Education Association (teachers, clerical, and

teaching assistants)

• Service Employees International Union

• Budget Design• Aligning elementary programs

• Estimating costs to run new high school

FY15 Financial Challenges

• Funding technology updates at the elementary schools

• Commitment to addressing outstanding post-employment benefits (OPEB)

• Over reliance on School Choice funds to “balance” FY15

• Developing a sound Excess and Deficiency account to ensure long-term district stability

FY15 Budget Assumptions/Strategies

Includes all staffing reductions, additions, and program enhancements Level funded State Aid, Circuit Breaker (50%), and Regional

Transportation reimbursement (46%) Recommended budget does not use the Governor’s numbers, which

again change each town’s minimum required contributions Health Insurance increased by only 1.8% Transportation bid increased by 13% School Choice and Charter tuition “out” use draft FY15 Cherry Sheet Utilities for new Monomoy Regional High School estimated from similar

“model” schools’ utilities use Reclassifications in current year’s budget to offset next year’s

expenditures E+D certified at $514,648 Recommended budget includes $70,000 to fund the first of a three year

strategy to upgrade educational technology in elementary schools Recommended budget includes $197,000 (1% of payroll) to begin

addressing OPED liabilities

Operating Budget

Available Funds

Anticipated Revenues FY14 FY15

State Aid $2,506,360 $2,506,360

Regional Transportation $298,031 $302,000

Charter School $134,190 $134,190

Medicaid $90,000 $86,000

Interest $4,000 $4,000

Miscellaneous $7,500 $7,500

TOTAL $3,040,081 $3,040,050

Anticipated Offsets FY14 FY15

School Choice $1,625,928 $2,557,722

Circuit Breaker $338,182 $675,842

TOTAL $1,964,110 $3,233,564

To support balanced town budgets, use of School Choice monies significantly increased in FY15.

Account BalancesSchool Choice REVENUE EXPENDITURE ENDING BALANCE

Initial Balance $1,465,261

FY 13 $1,555,378 $1,786,766 $1,233,873

FY 14 Projected $1,579,071 $1,334,293 $1,478,651

FY 15 Projected $1,501,717 $2,557,722 $422,646

Excess & Deficiency REVENUE EXPENDITURE ENDING BALANCECertified Initial BalanceFeb. 12, 2012 $514,648

Circuit Breaker REVENUE EXPENDITURE ENDING BALANCE

Initial Balance $192,813

FY 13 $454,141 $420,408 $226,546

FY 14 Projected $525,197 $601,097 $150,645

FY 15 Projected $525,197 $675,842 $0

Maintaining sound account balances ensures long-term fiscal stability.

FY15 Operating Budgetby Cost Center

High School18.7%

District33.2%

Elementary Schools18.1%

Middle School15.4%

Special Education14.6%

Excludes Transportation and Debt

FY 15 Operating Budget Summary

In FY15, the middle school shifts from 4 to 3 grade levels and the high school from 4 to 5 grade levels.

Cost Center FY 14 Budget FY15 Budget Difference%

Change

Elementary $5,596,150 $5,728,414 $132,264 2.4%

Middle $4,762,241 $3,855,614 -$906,627 -19.0%

High $5,801,939 $5,687,477 -$114,462 -2.0%

District $9,306,538 $9,958,478 $651,940 7.0%Special Education $4,539,972 $4,597,556 $57,584 1.3%Operating Budget $30,006,840 $29,827,539 -$179,301 -0.6%

Excludes Transportation and Debt

General Fund Expenditure CategoryFY 14

BudgetFY 15 Budget Difference

% Change

1000District Leadership & Administration Salaries & Wages $764,623 $814,929 $50,306 6.6%

1000District Leadership & Administration Expenses $414,874 $404,874 -$10,000 -2.4%

2000Instruction Salaries & Wages $15,236,219 $14,756,550 -$479,669 -3.1%

2000Instruction Expenses $1,151,986 $1,152,984 $998 0.1%

3000Other School Services Salaries & Wages $713,247 $680,890 -$32,357 -4.5%

3000Other School Services Expenses $1,521,538 $1,641,348 $119,810 7.9%

4000Operations & Maintenance Salaries & Wages $1,012,202 $1,018,465 $6,263 0.6%

4000Operations & Maintenance Expenses $1,984,276 $1,838,612 -$145,664 -7.3%

5000Fixed Charges $5,194,541 $5,529,117 $334,576 6.4%

7000Capital $101,312 $71,312 -$30,000 -29.6%

9000Programs With Other School Districts $2,605,631 $2,731,917 $126,286 4.8%

Total Salaries and Wages $17,726,291 $17,270,834 -$455,457 -2.6%

Total Expenses $12,974,158 $13,370,164 $396,006 3.1%

Total Operating Budget $30,700,449 $30,640,998 -$59,451 -0.2%

Excludes Debt

FY15 Operating Budgetby Category

Expenses13%

Programs with other school

districts7%

Capital0.2%

Salaries & Wages47%

Fixed Charges18%

SPED15%

FY 15 Operating Budget Summary

Category FY 14 Budget FY15 Budget Difference%

ChangeOperatingBudget $30,006,840 $29,827,539 -$179,301 -0.6%Regular Transportation $693,608 $813,459 $119,851 17.3%

Total $30,700,449 $30,640,998 -$59,451 -.2%

Excludes Debt

Debt

• Borrowing costs to fund buildings projects, previously approved by the voters, is not included in the calculation of a municipal department’s annual budget increase.

• Interest on Building Project FY15 $884,864 -$301,064 BAN Premiums to offset Debt $583,800 Debt to be Assessed to Towns

• Existing Debt of $195,676 in FY15, in FY14 it was $293,058

• Total Projected Cost of Debt in FY15 is $779,476, an increase of $486,418.

• The Debt will increase in FY16 and then decrease over the next 19 years.

Debt

FY 15 Budget Summary

Category FY 14 Budget FY15 Budget Difference%

ChangeOperatingBudget $30,006,840 $29,827,539 -$179,301 -0.6%Regular Transportation $693,608 $813,459 $119,851 17.3%

Debt $293,059 $779,476 $486,417 165.9

Total $30,993,507 $31,420,474 $426,967 1.4%

Includes debt

General Fund Expenditure CategoryFY 14

BudgetFY 15 Budget Difference

% Change

1000District Leadership & Administration Salaries & Wages $764,623 $814,929 $50,306 6.6%

1000District Leadership & Administration Expenses $414,874 $404,874 -$10,000 -2.4%

2000Instruction Salaries & Wages $15,236,219 $14,756,550 -$479,669 -3.1%

2000Instruction Expenses $1,151,986 $1,152,984 $998 0.1%

3000Other School Services Salaries & Wages $713,247 $680,890 -$32,357 -4.5%

3000Other School Services Expenses $1,521,538 $1,641,348 $119,810 7.9%

4000Operations & Maintenance Salaries & Wages $1,012,202 $1,018,465 $6,263 0.6%

4000Operations & Maintenance Expenses $1,984,276 $1,838,612 -$145,664 -7.3%

5000Fixed Charges $5,194,541 $5,529,117 $334,576 6.4%

7000Capital $101,312 $71,312 -$30,000 -29.6%

8000Debt Retirement & Service $293,058 $779,476 $486,418 166.0%

9000Programs With Other School Districts $2,605,631 $2,731,917 $126,286 4.8%

Total Salaries and Wages $17,726,291 $17,270,834 -$455,457 -2.6%

Total Expenses $13,267,216 $14,149,640 $882,424 6.7%

Total Budget $30,993,507 $31,420,474 $426,967 1.4%

Includes Debt

Assessment

Harwich Assessments

CategoryFY14

BudgetFY15

Budget Difference % ChangeOperating (73%) $19,928,026 $19,536,164 -$391,862 -2%Transportation (76%) $319,825 $390,307 $70,482 22%Debt(73%) $89,812 $569,017 $479,205 533%TOTAL $20,337,663 $20,495,488 $157,825 0.78%FY14 Minimum Contribution Adjustment ($336,245)Final FY15 Assessment $20,159,243 ($178,420) -0.88%

Chatham Assessments

CategoryFY14

BudgetFY15

Budget Difference % ChangeOperating (27%) $7,288,141 $7,603,814 $315,673 4.33%Transportation (24%) $124,376 $123,255 -$1,121 -0.90%Debt(27%) $203,246 $210,459 $7,213 3.55%

TOTAL $7,615,763 $7,937,528 $321,765 4.22%FY14 Minimum Contribution Adjustment $336,245Final FY15 Assessment $8,273,773 $658,010 8.64%

Total Taxpayer Funding for Schools, excluding Debt,Before and After Full Regionalization

Before Regionalization FY11 Harwich School Budget FY11 Chatham School Budget $20,386,086 $10,101,138

After Full Regionalization FY15 Harwich Assessment FY15 Chatham Assessment $19,926,471 $7,727,069

Savings $459,615 less than FY11 $2,374,069 less than FY11

Combined the towns are saving $2.8M over FY11.

Factoring in inflation since FY11 would make the realized savings greater.

Delivering the “Promise of Monomoy”

• Improved curricula,• Expanded opportunities, • Enhanced educational experiences of our children, and

• Over $2.8M in savings to our towns and citizens.