School Budgets Presentation- Pt 2 Expenses-FINAL€¦ · Part 2 Costs Dale Magee. 0 20000000...
Transcript of School Budgets Presentation- Pt 2 Expenses-FINAL€¦ · Part 2 Costs Dale Magee. 0 20000000...
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SchoolBudgets
Complicated,confusing,predictablePart2CostsDaleMagee
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Part1:Revenues$availableforcostincreasesarenotjustheldto2½%theyareheldto2½%ofafractionofthetotal&this
fractionmustbearthefullinflationarypressure
Inflation
Inflation
Prop
Tax
Town
Budget
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Expensesideissues:
• Onceabudgetisestablished,volatility &inflationare2thingsthatdestabilizefuturebudgets
• Outsideexpensescancrowdoutfundsforschools• Wewilllookat:– Perspectivesoninflation– Overviewofteachercosts– OverviewofSPEDcosts– Heathinsurancecosts
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Inflation:Educationby~3-4%/yrinwellmanageddistrictsandinthestateasawhole
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PerPupilExp
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Shrewsburyavg annualincrease2008-15=4.8%for2008-2014:3.4%Massachusettsavg annualincrease2008-15=2.8%
Source:DESEPerPupilExpensereports
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CPIismadeupof9differentareas,eachwithuniqueinflationpattern
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LaborIntensiveFieldshavehigherincreasesinthecostoflabor(Baumol effect)
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EvenSchoolBudgetscontainseveraldifferentinflationrates
• Teaching:2factorsthatpushitup• SpecialEducation:especiallyoutofdistrict&highneedsstudents
• HealthInsurance:virtuallyalwaysafewpointsaboveinflation
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Teachers
• Makeup45%ofOperatingBudget• TotalCostaffectedby
– Salary– Numberofteachers
• Salary:– 13steps:startat~$46Kandpeakat~$78Kwithbachelorsdegree(expectedtogetMasters)
– 7Tracks basedoneducation:~$5KforMaster,~13Kfor60creditsbeyondMasters
– CostofLiving:generally~2%/yr.Overthelongrun,tracksSocialSecurityfairlyclosely
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Whileseniorteachersalariesgoupby2%/yr,juniorteachersalariesstartat50%
lowerbutgoupby~7%/yr
AvgShrewsburyAdvDegree
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Becauseofchangesinthemixofnew&experiencedteachers,mostnewmoneywenttohiringmoreteachersinthepast5years
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TheSpecialCaseofSpecialEducation
• Largescope:fromminorlearningdisabilitytooutofdistrictresidentialcare
• Longtimespan:Highneedstudentsentersystematage3andremainunderdistrictcareuntilage22,ifrequired
• BothInflationandVolatilityareissues• At~14% wehavealowerpercentagethanstateaverageinSPED
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819SpecialEdstudents:mostarelowestcostcategory
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NumberofstudentsinSPEDcostcategories
Numberofstudents
Brakepointforstateaid
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BecausetherearefewerhighcostSPEDstudents.Most$spentonthelowcost
students
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$spentonstudentsincategory
$spentonstudentsincategory
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(~7%/yr)Volatility:-4%to+20%
Source:EndofYearReports,TotalTuitionoutofdistrict
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SpecialEdhasmultiplesourcesofrevenue- buttownbearsthevolatility
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SPEDby$Source
FedGrants490 StateFoundation StateCircuitBreaker180 Town(SPEDbudget- above)
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SpecialEducation
• AidfromFederalgovernmentisflat
• Stateaidfrom“CircuitBreaker”buffersbutdoesnotprotectfrominflation
• Mostofthevolatility&inflationisbornbythetown
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WhyisHealthCarecostimportantifitisnotpartoftheTownAppropriatedSchoolBudget?
• Locally:increasesleavelessforthetowntopayfortheschoolbudget
• Statewide:moreofthepiegoestohealthcareandlessofthepiegoestoeducation
• Taxpayers:lowerraises,higherpayrolldeductions,highercopays&deductiblesleavelessforeverythingelse– (employercontributionscanexceed$6/hr)
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Locally:ShrewsburyHealthInsExp~5%/yr(andareabouttogoupby>10%)
Source:MassDORMunicipalDatabankhttps://dlsgateway.dor.state.ma.us/reports/rdPage.aspx?rdReport=ScheduleA.HealthInsurance.HealthInsExpenditures&ctHealthExp-PageNr=7&rdDataCache=3302376082&rdShowModes=&rdSort=&rdNewPageNr=True1&rdRequestForwarding=Form
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4%
14%Healthcare
Education
Source:MassBudget&PolicyCenter
ForFY18StateincreasesforHealthCarewere10XmorethanEducation
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Aspaychecksincreasedby50%,workerscontributionstopremiumsincreasedby~200%
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Onedriverofincomestagnationhasbeenbenefitgrowth,primarilyHealthIns.
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Whatarethepressuresinthefuture?
• MaintainingClassSizeputsusinahigherinflation categorythantheCPI.
• SPEDisahighinflationservice.– Regulationsandstatecontrolofoutofdistricttuitionsleavelittlewiggleroom.
• AlthoughhealthinsuranceisnotpartoftheTownAppropriatedSchoolBudget,itcrowdsoutfundsavailableforotherschoolcosts
• Eachoftheseitems,bytheirnaturewillgoupmorethan2½%,morethantheCPIandmorethaneducationasawhole