FY11 PRELIMINARY BUDGET

LINCOLN-SUDBURY REGIONAL SCHOOL DISTRICT

Presented to the School CommitteeDecember 9, 2009

BUDGET GUIDELINESLINCOLN-.5% No Override

SUDBURY4.5% Override

FY’10 OperatingFY’10 Pensions/InsuranceTotal FY’10 Budget

$ 19,982,076 $ 19,982,076$ 3,718,484$ 23,700,560

Increase / (Decrease) ($ 99,910)

$ 1,066,525

FY’11 OperatingFY’11 Pensions/InsuranceTotal FY’11 Budget

$ 19,882,166 $ 3,778,105 $ 23,660,271

$ 24,767,085

Revised 12/17/2009 2

Level Staff based on 4.5% Sudbury Guideline $ - 939,743 $ + 167,071

BUDGET ASSUMPTIONS• Level Staff• Moved staff on steps and applied negotiated cost

of living increase and other contract provisions• Projected costs for utilities, Special Education,

health insurance and other contracts - as of December 9, 2009

• Departmental and other expenses at 4.5%• Athletic, Activity and other Fees continued at

same amounts

Revised 12/17/2009 3

ENROLLMENTS

FY’10 enrollment was projected to be 1,640 (26 students over FY’10 actual). Increased class sizes resulted in students leaving for private schoolFY’11 projection based on 10-year average = 1,645FY’11 projection is an increase of 31 students over FY’10 October 1 actual enrollment of 1,614To offset this enrollment increase and maintain FY’10 class sizes, 1.6 FTEs are needed

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GradeFY’10 Actual FY’11 Proj Change

9 423 436 +1310 409 420 +1111 390 405 +1512 392 384 -8

Total 1,614 1,645 31

BUDGET COMPONENTSFY’11 PRELIMINARY BUDGET

Revised 12/17/2009 5

SALARIES $575,671 increase

• Step Increases• Negotiated cost of living of 1.75% for all

teachers• Additional 1.0% for those at top step• Master Teacher Stipend subject to years of

service and performance• All other staff adjusted similarly

Revised 12/17/2009 6

SALARIES $575,671 increaseCATEGORY TEACHERS ED’L

SUPPORTADMIN

SUPPORTBUILDINGS &

GROUNDSADMINI-

STRATION

Steps $230,584 $15,087 $10,035 $2,825

COLA $251,386 $18,567 $17,754 $11,943 $23,324

Longevity $6,880

Degrees $23,791 -1,300

Stipends $4,500 $518 $120 $550 $9,136

Retirements (net) $-43,156 $-20,000

Retire Incentive $-94,523

Staff Exchange $107,650

TOTAL $487,112 $34,172 $27,909 $15,318 $11,160

% INCREASE 4.3% 3.9% 3.1% 2.6% 1.0%

Revised 12/17/2009 7

PENSIONS & INSURANCES $352,957 increase

• Middlesex Retirement increase of 4.5%

• Unemployment reduced to prior year levels assuming no layoffs

• Workers Compensation level-funded based on historical premium costs

• FICA-Medicare tax increased to align with actual costs

• Property/Liability insurances only up 2.5% due to participation in MIIA programs for credit and review of coverages

Revised 12/17/2009 8

PENSIONS & INSURANCES $352,957 increase

Health Insurance Cost Containment Measures

• Negotiated 5% change in employer-employee contributions from75%-25% to 70%-30%

• Instituted “rate saver” plans with higher co-pays and deductibles but lower premiums

• Negotiated incentive program to make less expensive plans more attractive

• Adopted Section 18 requiring eligible retirees to enroll in Medicare

Revised 12/17/2009 9

HEALTH INSURANCE COST CONTAINMENT RESULTS

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PENSIONS & INSURANCES $352,957 increase

Health Insurance Budget Assumptions

• Health Insurance for active employees estimated at 12% premium increase

• Allowance for additional plans to accommodate qualifying events

• Retiree Medicare supplement plan rates fixed for first half of FY’11; estimated 5% increase for second half

• Additional allowance for plans for known retirements

• Medicare Part B penalty included

Revised 12/17/2009 11

MANDATES $268,007 increase• Special Education placement costs up $322,798

(13.4%) over FY’10 budget with a net of 6 new placements

• Special Education transportation is down $51,815 (9.6%)

• Other services reduced to reflect anticipated needs• Section 504 services separated out from Special

Education and estimated at $8,000

Revised 12/17/2009 12

UTILITIES $55,389 decrease

• Electricity is major utility for L-S and conservation and efficiency measures have been implemented

• Favorable rates locked in and projected costs result in $46,000 (6.5%) decrease

• Natural gas rates locked, resulting in $3,000 (4.5%) decrease

• Telephone costs estimated at $9,000 (15.2%) decrease based on history

Revised 12/17/2009 13

CONTRACTUAL OBLIGATIONS $19,691 increase

CATEGORY $ INCREASE % INCREASE

Regular Transportation $13,891 3.0%

Cleaning Services $-0- 0.0%

Course Reimbursement $-0- 0.0%

Audits $ 5,000 33.3%

Conference/Travel $ 800 5.1%

Revised 12/17/2009 14

OPERATIONAL REQUIREMENTS $6,501 increase

• Includes banking services; network maintenance; student, financial, library and computer software maintenance; legal services; physician services; bid and personnel advertising; postage; memberships; graduation/cum laude/orientations; and waste water treatment plant maintenance

• Overall a 2.3% increase in all expenses

Revised 12/17/2009 15

DEPARTMENTS $112,877 increase

• Instructional budgets for textbooks, materials, supplies, equipment, conferences, etc. are up 6.5%

• The actual dollar amount is almost equal to FY’05 budgeted and expended amounts, but with 142 more students projected

Revised 12/17/2009 16

DEPARTMENTS $112,877 increase

• Other departments – Student Services, District Technology, and Athletics/Activities increased 4.5% or less

• The Administration budget includes an amount for a Superintendent/Principal search

• Buildings & Grounds is an 11% increase

Revised 12/17/2009 17

CONTINGENCY $43,241 decrease

• Contingency was originally budgeted at $30,000 in FY’10 and also in FY’11

• Savings resulting from all final hiring and budget adjustments resulted in an additional $210,312 in the FY’10 Contingency account

• The unbudgeted balance of $167,071 in the FY’11 budget is currently in Contingency

Revised 12/17/2009 18

REVENUE OFFSETS $170,549 increase

CATEGORY $ INCREASE % INCREASE

Circuit Breaker $207,094 45.0%

Tuitions from Non-Residents $ -45,000 -50.0%

Athletic Fees $300 per sport $ 9,600 4.0%

Activity Fees $65 per student $ 0 0.0%

Parking Fees $300 per year $ 0 0.0%

Building Use $ -1,652 -2.4%

METCO Grant Offset $ 0 0.0%

Library Copier Use Fees $ 507

Revised 12/17/2009 19

BUDGET COMPONENTS4.5% BudgetExpenses

Salaries $15,753,695Pensions & Insurance $3,777,194Mandates $3,363,728Utilities $815,046Contractual Obligations $771,389Operational Requirements $284,806

Less: Fees & Other Revenues $-1,269,691

Total Fixed Costs $23,496,167

Revised 12/17/2009 20

BUDGET COMPONENTSFY’11 Budget at 4.5% $24,767,085Less: Fixed Costs - 23,496,167Balance $ 1,270,918Less: Department Requests - 1,073,847Less: Contingency - 30,000Balance Available $ 167,071

Revised 12/17/2009 21

PRELIMINARY BUDGET PRIORITIESFY’11 PRELIMINARY BUDGET

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PRELIMINARY BUDGET PRIORITIESRestore House or .50 Administrator $54,000 – 0.50 –

$ 165,917 2.00 FTETeachers $ 120,832 2.00 FTEGuidance Counselor $ 60,416 1.00 FTELibrary $ 20,569 0.17 FTENursing Services $ 10,026 0.20 FTEPeer Mediation $ 15,104 0.25 FTEPeer Leader/Tutor $ 15,104 0.25 FTETech Integration Spclst $ 30,208 0.50 FTE

GRAND TOTAL $326,759 - $438,176 4.87 - 6.37 FTE

Revised 12/17/2009 23

ASSESSMENT TO THE TOWNSFY’11 PRELIMINARY BUDGET

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PRELIMINARY ASSESSMENT INFORMATION

• Apportionment ratio is a shift of .15% to Lincoln• Chapter 70 state aid unknown at this time• Anticipate Regional Transportation to be level to the

reduced FY’10 amount• Estimated Receipts lowered to reflect anticipated lower

Medicaid reimbursement• Reapportionment lower based on significant loss of interest

income due to the downturn in the economy, reductions to State Aid in FY’09, and lower unexpended funds in FY’09

• Debt Service, net of MSBA reimbursement and bond premiums, decreasing by $68,000

Revised 12/17/2009 25