Manchester Essex Regional School District

Budget WorkshopJanuary 19, 2010

Our FY11 Fiscal ChallengeIncreased costs of doing business

– Health insurance– Increased special education out of district costs– Increased student enrollment– Negotiated salary increases– Utilities for larger building (2times square footage)

It costs more to deliver the sameeducational services as we did last year

Financial Trend: Escalating Costs & Declining State Aid

*State Aid = MERSD’s Chapter 70 and Regional Transportation Revenue

• Mandated spending, contractual obligations driving annual budget increases

• State funding cuts reflect deteriorating economy

Special Education Costs Outpacing Reimbursements

*FY-10 Budget included DESE’s original Circuit Breaker reimbursement estimate of $441K and operating expenses of $990K.**FY-10 Forecast includes revised DESE Circuit Breaker reimbursement estimate of $237K and operating expense of $1.28 million

The Dilemma

• FY 11 Level Service Operating Budget - $20,765,538– $1,871,134 (9.9 %) increase over FY 10– Over 12% increase to town assessments

• Recognizing towns’ funding constraints while holding onto district goal to maintain educational program, district has worked to target reductions

• Reductions needed to reach– 5.0% $1,228,200– 4.5% $1,308,899– 4.0% $1,389,598– 3.5% $1,470,297– 3.0% $1,550,996

Working towards the Solution• Use additional reserves $567,500– School Choice, E&D, Stabilization

• Reduce salaries $386,000– Eliminate/combine positions

• Reduce expenses $265,000– Reduce instructional supply, curriculum,

professional development and technology budgets• Increase revenues $171,500– New/increase fees for athletics, busing, student

parking; additional School Choice students

Total Savings $1,390,000 – 4%

Beyond the 4% Reduction• A reduction to 3% means an additional $160,000 beyond the

$1.4 million in cuts identified

• Additional cuts will mean critical losses to educational programs

Items under consideration include:

– Reducing kindergarten to half day for all (eliminate full day)

– Restructuring/eliminating elementary specialists (possible 4.5 days per week model)

– Concessions (salary, health insurance, etc.) from administrators, support staff and META*

*Subject to negotiations

Kindergarten Options• Current Full-Day Kindergarten (FDK) Program:

– Puts all students on trajectory to continue MERSD’s tradition of academic excellence– Estimated program cost: $370K

• Budget Option 1: Introduce tuition for current full-day program. – Benefits: retain academic rigor and subsidize investment in program which currently

exceeds State/Federal guidelines– Drawbacks:

• Additional ½ day option needed for families choosing not to pay tuition for FDK• 50% avg. sign up rate in MA for tuition K, suggests wider range of student readiness

for 1st grade– Potential incremental revenue: $140K

• Budget Option 2: Eliminate FDK, return to Half Day Model– Benefits: similar savings with consistency of academic program across grade level– Drawbacks: major set back to MERSD’s academic preparedness strategy– Potential savings: $160K

• Administration Recommendation – Retain FDK, and seek savings with lesser impact to academic program– Rationale: benefits of modifications likely outweighed by significant impact to student

readiness

Reallocation of Administrative Resources 2010-2011

High School – Principal Jim Lee, Assistant Principal Paul Murphy

Middle School – Principal Beth Raucci (with support from Paul Murphy)

Memorial School – Principal Beth Raucci (withsupport from Jen Roberts

and Scott Morrison)

Essex Elementary School – Principal Jen Roberts

Director of Curriculum and Instruction – Scott Morrison

Roles and Responsibilities

• Middle School Principal – Beth Raucci– Office located at Middle School– Primary contact for Students, Staff, and Parents– Instructional Leader/Middle School Philosophy

Support to Middle School Principal – Paul Murphy/Middle School Team Leaders

Serve in Assistant Principal role at MS/HSSupervision in hallways/dining hallTeam Leader concept model

Roles and Responsibilities• Memorial School Principal – Beth Raucci– Primary office located at Memorial School– Primary contact for Students, Staff, and Parents– Instructional Leader

Support to Memorial School Principal-Scott Morrison and Jen Roberts

Assist with observations/evaluations of staffProvide support to on-site teacher

“substitute principals” in Principal’s absence

Plan Designed to Foster Schools/District Goals

• School/District Climate Task Force K-8

• Vertical and Horizontal ArticulationLiteracy and Science K-8

• School Improvement Plan GoalsMiddle School InitiativesMemorial School Initiatives

• Parent Involvement – School Improvement Councils, PTO’s, etc.

Conclusion• Current status at 4% reduction represents considerable

loss to schools with the $1.4 million cut

• Administration strongly recommends to School Committee not to go beyond 4% at this time

- talks with towns and Association ongoing - further cuts, if needed, would significantly impact quality of school district

• Beyond addressing the significant gap this year, need to look at multi-year strategy for cost containment while continuing to maintain quality of academic program