Download - — SAU #41 —

— SAU #41 —

Presented by:

HB Coop Budget CommitteeFebruary 6, 2012

Hollis Brookline Cooperative School District

Budget Hearing2012-2013 Budget

Budget Committee Membership

• Doug Davidson – Hollis• Fred Hubert (School Board Rep) – Brookline• Darlene Mann ( Vice Chairman) – Hollis• Greg McHale – Brookline• Val Ogden – Brookline• Steve Pucci (Chairman) – Hollis• Jim Solinas (Secretary) – Brookline• Ray Valle – Hollis

of 30

Public Hearing Process/Rules

• Requirements– Budget preparation/presentation– Review of warrant articles– “10% calculation”– Public input

• Rules– Residents of Hollis/Brookline may provide input– Comments should be respectful, constructive and purposeful– Come to podium, provide name and address

• Process– We present warrant articles, listen to input, then make decisions

of 50

Budget Considerations• Historical Budget Information & Trends

– Ex: Student Enrollment, Headcount, Cost/Student

• Current Economic Situation– National, Regional, Local– CPI, Unemployment, Debt, Revenue, Tax Burdens

• School Information– School Board Guidance and Inputs– Budget

• Public Input

of 50

Historical Budget Information

of 50

2004-2005 vs 2012-2013

of 50

of 50

Category Area IncreasesAdjusted For Inflation

Budget Trend

2011 / 2012 2012 / 2013 2013 /2014 2014 / 2015 2015 / 2016 $17,000,000

$18,000,000

$19,000,000

$20,000,000

$21,000,000

$22,000,000

$23,000,000

"Automatic" COOP Budget Increase per YearSalaries, Benefits, SPED

of504

Current Economic Situation

of 50

Economic Indicators• Unemployment

• Home Sales

• National Debt

• Home Prices

• Private Sector Pay

Economic Trend: too difficult to tell

of 50

Affect to Revenue ?

2010 Hollis Census Data# of Retired Households

In RED

2010 In 10 Yrs *

of 50

Adults > 24 yrs of age. Source: 2010 Census DataSeniors > 64 = Retired Households * Assumes 2/3rds of age 50-64 will be >65

2010 Brookline Census Data

# of Retired Households in RED

2010 In 10 Yrs* of 50

Adults > 24 yrs of age. Source: 2010 Census DataSeniors > 64 = Retired Households * Assumes 2/3 of age 50-64 will be >64

Tax Impact

All Warrants - $19,765,000 $/K % Tax Change $350K Home

Hollis $6.36 +4.9% +$103Brookline $9.20 +13.0% +$370

Operating Budget Warrant - $19,700,00Hollis $6.33 +4.4% + $93Brookline $9.15 +12.4% +$354

of 50

10% Maximum Allowable Increase CalculationRec. Amt. (Col. A)

1. Total RECOMMENDED by BudgetCommittee (see budget MS-7, 27, or 37)

LESS EXCLUSIONS:2. Principal: Long Term Bonds & Notes $ 885,550.613. Interest: Long-Term Bonds & Notes $1,010,829.394. Capital Outlays Funded From Long-Term Bonds & Notes per RSA 33:8 & 33:7-b5. Mandatory Assessments6. TOTAL EXCLUSIONS (sum of rows 2-5) $1,896,380.00

7. Amount recommended less recommended exclusion amounts (Line 1 less Line 6)8. Line 7 times 10%9. Maximum allowable appropriation prior tovote (Line 1 + Line 8) Col. B Col.C (Col B – A) 10. Collective Bargaining Costs Items, RSA32:19 & 273-A:1, IV, (Complete Column A -prior to meeting & Column B and Column C atMeeting)11. Bond Override RSA 32:18-a n/a n/a MAXIMUM ALLOWABLE APPROPRIATIONS VOTEDAt meeting, add Line 9 + amounts in Column C. of 50

School Information

of 50

17HB Coop District Meeting - March 16, 2011Page

Last March Meeting – School BoardFuture Trends

* NESDEC 2010 data

18HB Coop District Meeting - March 16, 2011Page

Lower Student/Staff Pop.Offsets Higher Salaries/Benefits

Lower Building Bond Payments

Last March Meeting – School BoardFuture Trends

FY13 – Current School Board Budget

Current FY’12 budget: $19,250,000

FY13: Key Increases Special Education:

$414,000 Salaries + Benefits:

$420,000

Proposed FY’13 Budget: $19,700,000 of 50

Opportunities for Savings• Over the past several years, the BudCom has demonstrated

that significant responsible savings are possible.

• The BudCom’s approach is fact-based analysis and solutions focused on fiscal responsibility and maintaining educational quality.

• PROVEN TRACK RECORD: The actual money spent each year has been lower than the Budget Committee’s proposed budget.

• COMMUNITY DESERVES BETTER: Dire consequences and fear of “cuts” (with a lower budget) as communicated by some of our elected officials is not a solution. We deserve responsible solutions, honest communication and leadership during these challenging times. of 50

FY13 Opportunity for Savings AreasCurrent Budget: $19,250,000

Adjustments: Pension: $181,000Salaries (fully loaded): $169,000FY12 Hiring Savings: ($100,000)Food Service: ($193,000)SAA (non-agency): ($50,000 -

$100,000)Energy (Rate): ($30,000)Group Purchases: ($20,000)UFB: ( ? )Energy Conservation: ( ? )Zero-Base / 0-Spend: ( ? )Benefit Savings: ( ? )FY13 Hiring Savings: ( ? )SPED: tbdCOOP Efficiencies (enrollment): ($100,000 -

$400,000) of 50

• Lack of Zero-based budgeting approach• “Nothing we can do about it” attitude• JUDGEMENT: Why teacher reductions first

versus other employee groups? • Reluctance to link PAY to PERFORMANCE in

some fashion• PRIORITIES: Example: new football field vs

retaining a good teacher?• Violate RSAs and Right-to-Know by not

providing REQUIRED information to BudCom.

of 50

Concerns

Unanswered Questions

• Strategic Plan ? Mission & Vision ? • District Priorities ?• Quality Metrics? How are we performing?• Unsustainable Benefits trend: What is plan?• Unsustainable SPED trend: What is plan?• Enrollment Decline: What is plan? • Core programs: Musts versus Wants?

of 50

Warrant Articles

of 50

Article 1. To elect all necessary school district officers for the ensuing terms by official ballot on March 13, 2011

• Election of one member of the School Board from Hollis for the ensuing three years.

• Election of one member of the School Board from Brookline for the ensuing three years.

• Election of one member of the School Board from Brookline for the ensuing two years.

• Election of one Budget Committee member from Brookline for the ensuing three years.

• Election of one Budget Committee members from Hollis for the ensuing three years.

of 50

Election of Officers

Article 1A. (By Petition) Shall we adopt the provisions of RSA 40:13 (known as SB 2) to allow official ballot voting on all issues before the Hollis/Brookline Cooperative School District on the second Tuesday of March?

The school board does/does not recommend this article. The budget committee does/does not recommend this article.

of 50

SB 2

Article 2. To see if the school district will vote to raise and appropriate a sum of $49,024 to fund the increase in cost items relative to professional staff salaries and fringe benefits for the 2012-2013 school year which resulted from good faith negotiations with the professional staff, and which represents the negotiated increase for those staff members that are off the salary table. This is the third year of a three-year contract.

The budget committee does/does not recommend this appropriation. The school board recommends this appropriation.

of 50

Prof Staff “Off-Step” Salaries & Benefits

Article 2 – Average Salary Increase

• Salary increases are achieved through various means: on step, off step, degree changes, stipends, attendance bonus. Dollars in operating budget, and separate warrants.

• Representative view of 8 employees that have been with the district for past 8 yrs: FY05 – FY13

• FY05: Average Salary = $44,460• FY13: Average Salary = $60,410

Average Salary Increase = 4.5 % per year of 50

Article 2: Off-Step Increases

• Salary increases based on step table, lane change, attendance bonus are in the base budget and “automatic” due to continuation clause in School Board contract

$135,581 “continuation clause: Evergreened”$ 40,743 proposed in Warrant Article------------------------------------------------------$176,324 in salary increases

of 50

Article 3. Shall the Hollis Brookline Cooperative School District, if Article 2 is defeated, authorize the governing body to call one special meeting, at its option, to address Article 2 cost items only?

The budget committee does/does not recommend this article. The school board recommends this article.

of 50

Special Meeting

Article 4. To see if the school district will vote to raise and appropriate a sum of $15,851 to fund the increase in cost items relative to support staff salaries and fringe benefits for the 2012-2013 school year which resulted from good faith negotiations with the support staff, and which represents the negotiated increase for those staff members that are off the salary table. This is the third year of a three-year contract.

The budget committee does/does not recommend this appropriation. The school board recommends this appropriation.

of504

Support Staff “Off-Step” Salaries & Benefits

Article 4

• Salary increases for those on the step table are automatic due to “Evergreen Law”

$18,983 “Evergreened”$14,376 proposed in Warrant Article------------------------------------------------------$33,359 in salary increases (~2.0%)

of 50

Article 5. Shall the Hollis Brookline Cooperative School District, if Article 4 is defeated, authorize the governing body to call one special meeting, at its option, to address Article 4 cost items only?

The budget committee does/does not recommend this article. The school board recommends this article.

of 50

Special Meeting

• Article 6. To see if the school district will vote to raise and appropriate a sum of $__________for the support of schools, for the payment of salaries for the school district officials and agents and for the payment of statutory obligations of the district. This appropriation does not include appropriations voted in other warrant articles.

The budget committee recommends this article. The school board does/does not recommend this article.

of 50

School Operating Budget

Article 7. Shall the voters of the Hollis-Brookline Cooperative School District adopt a school administrative unit budget of $ 1,322,633 for the forthcoming fiscal year in which $706,087 is assigned to the school budget of this school district? This year’s adjusted budget of $ 1,357,546, with $ 716,064 assigned to the school budget of this school district, will be adopted if the article does not receive a majority vote of all the school district voters voting in this school administrative unit.

The school board recommends this appropriation. The budget committee does / does not recommend this appropriation.

of 50

SAU Budget

Business Administrator: Eric Horton

Summarize next Warrants

of 50

Article 8. Shall the district rescind the provisions of RSA 31:95-c, (previously adopted at the annual district meeting in 2000), to restrict all revenues from fees for student participation in athletic programs for the purpose of defraying the cost of athletic programs so that any balance of principal or accumulated interest therein remaining shall be paid into the general fund?

The school board recommends this appropriation. The budget committee does / does not recommend this appropriation. (Majority vote required). of 50

Rescind Athletic Restricted Fund – Pay to Play

Article 9. To see if the district will vote, pursuant to RSA 198:20-c, to establish an Expendable Trust Fund called the Athletic Program and Services Expendable Trust Fund, for the purpose of defraying, in part, as the Hollis-Brookline Cooperative School Board determines, the costs of athletic programs and related services of the District, including, but not limited to the maintenance and operation of such athletic programs and related services, and to name the Hollis-Brookline School Board as the agents to expend monies from said fund, including the right to expend both the principal and interest in said fund, said funds to be held as required by law by the trustees of the trust fund for the Town of Hollis, it being understood that the said School Board, as agents to expend from said fund, shall not be legally entitled to expend any monies from said fund without first conducting the public hearing required by RSA 198:20-c, (II), and no such expenditure may be made unless it is for a purpose for which this fund has been established and it being further understood that any monies remaining in said fund at the conclusion of the fiscal year shall not lapse into the general fund but may be carried over from year to year. The school board recommends this appropriation. The budget committee does / does not recommend this appropriation. (Majority vote required).

of 50

Create Expendable Trust Fund

Article 10. Assuming the successful passage of the previous article, shall the district vote to raise and appropriate the sum of up to $200,000, the same to be paid into the Athletic Program and Services Expendable Trust Fund established by the passage of the preceding article, this sum to come from June 30 fund balance available for transfer on July 1, 2012, if available.

The school board recommends this appropriation. The budget committee does / does not recommend this appropriation. (Majority vote required).

of 50

Expendable Trust Fund

• Article 11. To see if the school district will authorize the Hollis Brookline Cooperative School District to access future year state and federal catastrophic aid funds in the event that special education costs exceed budget limitations. The school board recommends this article.

of 50

Access Catastrophic Aid

Article 12. (By Petition) Shall the voters of the Hollis Brookline Cooperative School District within School Administrative Unit 41 require the School Board to transfer $94,000 to the FY12 General Fund. This money is the total amount of specific revenue-generating activity balances under the Student Activity Accounts that remained on June 30, 2011 (end of school year FY11). In the FY11 Audit report, the auditor specifically identified these revenue-generating activities and funds were improperly handled and not according to standard accounting practices. Some examples of these specific funds include Vending, Guidance, testing, parking permit fees, and building use. Please note that Agency funds, all sports team funds, and the Restricted Athletic fund (pay-to-play) are not included within this warrant.

The budget committee does/does not recommend this appropriation. The school board does/does not recommend this appropriation.

of 50

Non-Agency SAA Balance Transfer

Article

Placeholder:

Any additional Petition Warrants?

of 50

MS27 – State Forms: Budget

INSTRUCTION

Regular Programs 5,287,515 5,297,743

Special Programs 2,500,695 2,593,997

Vocational Programs 108,933 140,942

Other Programs 440,457 442,200SUPPORT SERVICES

Student Support Services 1,120,4259 1,183,696

Instructional Staff Services 445,108 472,211General Administration

School Board Contingency 0 0

Other School Board 37429 350,334

PURPOSE OF APPROPRIATIONS

(RSA 32:3,V)Budget for

FY11-12

SBProposed For FY12-

13

of 50

Executive Administration

SAU Management Services

School Administration Service 783,684 751,746

Operation & Maintenance of Plant 1,141,812 1,150,804

Student Transportation 698,772 816,178

Support Service Central & Other 3,196,361 3,398,694

OTHER OUTLAYS

Debt Service - Principal 901,005 885,550

Debt Service - Interest 1,001,518 1,010,829



FY11-12SB Proposed For FY12-13

MS27 – State Forms: Budget

of 50

FUND TRANSFERS

To Food Service 536,754 499,114

To Other Special Revenue 335,511 235,000

To Capital Projects 0 0

To Capital Reserves

To Expendable Trust (*see below)

To Non-Expendable Trusts

To Agency Funds

Intergovernmental Agency Alloc.

SUPPLEMENTAL

DEFICIT

SUBTOTAL – All Accounts 18,576,534 18,929,039



FY11-12SB Proposed For FY12-13

MS27 – State Forms: Budget Transfers

of 50

MS27: FY2012- FY2013 Revenue

REVENUE FROM LOCAL SOURCES

Earnings on Investments 3171 3170

Food Service Sales 466,844 459,131

Tuition 21,867

Other Local Sources

REVENUE FROM STATE SOURCES

School Building Aid 396,021 395,638

Catastrophic Aid 130,979 205,352

Vocational Aid

Child Nutrition 3,744 3,500

Driver Education

Source of RevenuesRevised

Revenues Current

Year FY 12

Estimated Revenues

FY13FY

of 50

FY2012 - FY2013 Revenue

REVENUE FROM FEDERAL & OTHER FINANCING SOURCES

Federal Program Grants 15,718 15,000

Child Nutrition 36,635 36,482

Disabilities Programs 226,419 220,000

Medicaid Distribution 85,000 68,000Other Federal Sources 108,017

Transfer from Capital Project Funds

Transfer from Non-Expendable Trust Funds

Private Grants

Donations

Fund Balance to Reduce Taxes 177,921

SUBTOTAL – Actual/Estimated Revenue 1,672,336 1,406,274

Source of RevenuesRevised

Revenues Current

Year FY 12

Estimated Revenues

FY13

of 50

FY2012 - FY2013 Warrants

PURPOSE OF APPROPRIATIONS WARR #

School Board

Recommend

Budget Committee Approved *

Professional Salary & Benefits Increase* 2 49,024 Support Staff Salary & Benefits Increase* 4 15,850

SAU Budget 8 706,087

SUBTOTAL – Proposed Warrants 770,961

* Note: Not voted by Budget Committee

of 50

Budget Summary

Current Year Adopted Budget

School Board's

Recommended Budget

Budget Committee's

Recommended Budget

Appropriations – All Accounts 18,576,534 18,929,039

Special Warrant Articles Proposed

-

-

"Individual" Warrant Articles Proposed* 673,466

770,961

-

TOTAL Appropriations Proposed 19,250,000

19,700,007

Less: Amount of Estimated Revenues & Credits (1,672,336))

(1,406,274)

(1,406,274)

Less: Amount of Statewide Enhanced Education Tax/Grant

(5,073,132)

(5,054,489)

(5,054,489)

Estimated Amount of Local Taxes to be Raised For Education

12,504,532

13,239,237

* Note: Not voted by Budget Committee

of 50

Article

Page 52 of 50