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HomeMy WebLinkAbout2011-03-16 Finance Committee Minutes OF RFgO'l Finance Committee Meeting bog March 16, 2011 tsco w Conference Room, Reading Municipal Light Department The meeting convened at 7:00 PM in the Conference Room at RMLD. FINCOM Members Present: Chair Marsie West, Vice Chair David Greenfield, Paula Perry, Hal Torman, Mark Dockser, Bryan Walsh, Barry Berman, Kevin Leyne and Francis Fardy. Members Absent: None. Also Present: John Doherty Superintendent of Schools, Mary DeLai Director of Finance and Operations, School Committee members: Chuck Robinson, Hal Croft, David Michaud, Karen Janowski, Lisa Gibbs, and Chris Caruso, Town Meeting member John Arena, Kara Deyermenjian (Reading Patch) and recording secretary Abby McCabe. There being a quorum the FINCOM meeting was called to order at 7:08 PM. There being a quorum the School Committee was called to order at 7:09 PM. Mr. Doherty gave a brief introduction and summarized the fiscal goals for the Reading public schools. Challenges in Developing the FY12 Budget: A total of 28 FTE (full time employees) have been lost over the last two years due to budget cuts. The circuit breaker is down from 75% to a 40% reimbursement from the state. The exact amount of the state aid is still unknown at this point in time and an additional $103,000 was recently cut as part of the Town Manager's budget before the FINCOM. Substitute teacher and bus transportation contracts are currently being re-bid. Current challenges facing Reading's schools are large class sizes mainly experienced at the high school, an increase in students that need additional support such as cases involving bullying, an increased need for technology support, implementation of the common care and the new anti-bullying laws that will require additional trainings. The priorities and overarching goals are to protect low class sizes particularly from kindergarten to second grade, sustaining K-12 technology infrastructure, avoiding the elimination of day programs such as art, music, physical education, foreign languages etc., and maintaining facilities to control the long term operating costs. Ms. DeLai explained that the circuit breaker is money from the state that reimburses the Town for high cost special education students. The circuit breaker funding has been significantly reduced over the last couple of years but in FYI some of the costs were absorbed by the federal stimulus funding. A total of$911,000 is anticipated as the circuit breaker offset for FY12. Ms. DeLai reviewed Chapter 70 funding from the last 11 years showing how the funds have decreased since FY09 are the decline is expected to continue. A 70% cut to general government aid is included in the Governor's budget. Ms. DeLai explained that the Chapter 70 formula is calculated by establishing the minimum funding amount necessary to provide adequate public education. On average, Massachusetts communities spend about 16% above this minimum level and Reading typically spends 18% - 20%more than what is required. However, since FY09 Reading and other communities have been spending on average 13% and Reading will be spending 11% in FY12. In response to decreased state funds, several new fees have been created and existing ones have been increased. Ms. DeLai reviewed a variety of fees since FY09 which included increased athletic user fees, increased bus fee, increased drama fee, and a new band, high school and middle school fees implemented in FYI 1. Over the last three fiscal years Reading has received over $3 million dollars in American 1 Reinvestment and Recovery Act (ARRA) funds. However, despite the fee increases and ARRA funding, the school budget has still been reduced by $2.7 million over the last two years. Ms. DeLai summarized the personnel cuts from FYI and FYI and reviewed how much money the school department has returned to Reading's cash reserves from FY09 through FYI 1. The School Committee adopted a FY12 budget in January that included a -1.1%reduction from FYI 1. Energy savings from the performance contracting is a major factor in the FY12 budget because the performance contracting has been completed in January of this year. Mr. Doherty reviewed the options that were evaluated when determining the final FY12 budget. The first option was a level service budget, the second option was a level funded budget, the third option was the School Committee's budget with the -1.1% reduction, and the final budget proposal includes a reduction of the $103,000 from the Town Manager's budget. To get from the School Committee's approved budget to the Town Manager's budget, the School Committee needs to eliminate 2.4 FTE teachers (most likely at the elementary and high school) in addition to eliminating the instructional specialist, raising athletic user fees by $40 per student, and eliminating 4.0 FTE Regular Education Para-educators. In summary, a total of 36.9 FTEs have been eliminated over the last three years. Questions: In response to a FINCOM member, Ms. DeLai explained that there are approximately only 30 non-union employees that will be receiving the 1% cost of living adjustment in efforts to keep strong employees. It was explained that a reference to a"rainy day fund" at a previous School Committee meeting was referring to the state's reserve fund. A FINCOM member asked if revenues could be summarized in the proposed budget. Ms. DeLai responded that this was shown in the detailed budget book provided to FINCOM and mostly comes from the Town's general fund. The Town is still projecting a 10% cut to Chapter 70 funds and are assuming that it may not be 10%but believe it will be between 4% and 10%. The school department has been following gas prices closely and believes the proposed budget is realistic. The five year contract option is on the Annual Town Meeting warrant which is expected to bring in more competitive BIDS. A FINCOM member asked if substitute teacher models from other communities or a permanent substitute option was considered in the FY12 budget. Ms. DeLai responded that this has been considered but does not save money. Permanent subs can be more expensive rather than a cost savings. Ms. DeLai also clarified that the maintenance reduction in the Town Facilities budget was the courier position and not a custodial position. On a motion by Mr. Dockser, seconded by Mr. Berman, FINCOM voted 9-0-0 to adiourn at 8:22 PM. Respectfully submitted, Recording Secretary 2