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HomeMy WebLinkAbout1999-03-18 School Committee MinutesREADING SCHOOL COMMITTEE Reading, Massachusetts Budget Council March 18,1999 Chair D'Antona called the School Committee to order at 7:35 p.m. in the Multi Purpose Room at the Parker Middle School. Present were School Committee members Cavicchi, Dahl, D'Antona, Stohlman and Twomey. Also present was Superintendent Harutunian. Chair McDonald called the Board of Selectmen to order at 7:35 p.m. Chair Keigley called the Finance Committee to order at 7:35 p.m. FY00 Revenue Projections Town Manager Hechenbleikner reviewed the FY00 Revenue Projections. He noted the changes in interest earnings, cemetery perpetual care, sale of real estate funds, earning distributions — electric. Finance Committee Presentation Chair Keigley thanked the Finance Committee members for their dedication and hard work on the budget. Chair Keigley distributed the Finance Committee's recommendations for balancing the FY00 budget. The recommendations included cutting the following capital items: $215,000 Demo of old police station $30,000 DPW Garage $225,000 Fire Pumper Engine The cuts from the capital fund still leaves a shortfall of $51,000 which the Finance Committee recommended be split equally between the Town and Schools each taking an additional $25,500 reduction. Chair Keigley stated that the FY00 budget could be balanced by the using the recommendations of the Finance Committee but that Carol Grimm would be making a presentation to the Budget Council this evening regarding concerns about future budgets. Carol Grimm distributed a free cash analysis showing the Finance Committee's estimated projection of free cash and the Town Manager's estimated projections of free cash. She noted that the Town Manager's estimate was higher the Finance Committee's and even using the higher number the Finance Committee's goal of 5% reserves would not be met. Budget Council -2- March 18, 1999 Carol Grimm also distributed a projection for FY01. The projection showed that, assuming no new programs, an increase of $3,066,000 in the operating budget would be needed to just maintain current levels of service. Mr. Stohlman asked what the history of the Town's bond rating was. Ms. Klepeis stated that the Town was Al back in the 1970's and maintained that rating until 1996 when the rating was upgraded to a AA. The increase was based on holding 5% in reserve, new growth and the fact that the average income in Reading went up. Mr. Stohlman then asked for an estimate on what the difference could be going from an AA rating to an Al rating. Ms. Klepeis stated that this was hard to estimate. She stated that the higher the rating the lower the interest rate but that there are other factors that also influence rates. Mr. Kurker stated that investment firms sometime do their own investigation and the Moody's rating may not be as important. He did note that investment firms are looking at some of the same areas Moody looks at when determining a rating. Dr. Harutunian recognized Town Manager Hechenbleikner for his hard work in finalizing the Corporex deal. Town Manager Hechenbleikner stated that if all the Council looks at all the projects the capital plan that all the projects will be done but some have been pushed back due to constraints. He stated that more time needs to be spent on the capital plan and that steady progress needs to be made on the capital plan. Town Manager Hechenbleikner stated that the Projected FY01 numbers show that if state aid does not increase significantly services will not be able to be maintained at the current levels. Finance Committee Member MacDonald stated that the council needs to go through the capital plan line by line and discuss how the plan can work. Selectman Anthony asked whether the new positions for implementing the Peat Marwick report were included in the Finance Committee's recommended budget. Carol Grimm stated that the Finance Committee's budget included no new positions. Budget Council -3- March 18,1999 Dr. Harutunian advised that the School Committee has not had an opportunity to discuss were reductions will be made. He stated that the proposed reductions are only the Superintendent's recommended reductions and may change. Selectmen Hoyt informed the Committee that a meeting to give an opportunity to the public to give input into the state budget will be held March 25th at 4:00 p.m. at the Gardner Auditorium. She encouraged all to attend this meeting. At 8:15 p.m. Ms. Williams arrived. At 8:25 Chair McDonald that breakout discussions would begin. He advised that the Finance Committee would break into two groups one group to go with the Selectmen and one to go with the School Committee. The School Committee and Superintendent Harutunian met with members of the Finance Committee. A concern of the Committee was that no additional teachers have been hired for the high school in two years and the enrollment at the high school is growing quickly. Dr. Harutunian stated that the lack of teachers would prevent some students from having an opportunity to take a class that they wanted. Mr. Twomey stated that if additional state funds become available in July it would be very difficult to fill September teaching positions and that he was willing to accept the bottom line figure but wants to review reductions and look again at non - personnel. Ms. Williams agreed and questioned when reductions in maintenance would be looked at again. Mr. Stohlman stated that the high school enrollment has increased and additional staff is needed. He stated that he finds it unacceptable to move forward with 6th grade foreign language and not add high school staff. Ms. Cavicchi stated that she was inclined to go along with the Finance Committee's recommended budget. Chair D'Antona stated that this was a difficult situation but that she would accept the Finance Committee's recommended bottom line number. Mr. Stohlman made a motion to accept the Finance Committee's recommended budget. There was no second. At 9:10 p.m. the Budget Council began discussion of the breakout meetings. Chair D'Antona advised that the School Committee had come to consensus that the Finance Committee had taken a fair and balanced approach to the budget and that the School Committee would accept the Finance Committee's recommended budget number but that the details would still have to be worked out. Budget Council March 18, 1999 Mr. Stohlman stated that he wanted it noted for the record that the School Committee did not vote. They came to consensus and he is not sure what a proclamation of consensus means. Mr. Stohlman stated that he did object to the way the School Department budget is panning out because we are not meeting to discuss what the cuts mean. Chair McDonald asked if the School Committee discussed process for restoring cuts. Chair D'Antona stated that the main focus of the Committee was to look at the reductions and she questioned the wisdom of looking at put backs when we haven't decided where to cut and are still uncertain that additional funds will be received or any put backs will feasible. Chair McDonald stated that the Board of Selectmen voted 3 -0 to support the Finance Committee's recommended balancing strategies and the reductions that were split 50% town and 50% schools. Chair McDonald stated that had the dollar amount of the reductions been larger, the Board of Selectmen would have wanted the reductions to be percentages in proportion to the actual budgets. He also stated that the Board of Selectmen agreed that any new state money can't be used to add to the operating budget, the reductions can be restored but that figure cannot be exceeded. The priorities for put back of capital was a minimum figure for taking down the police station and making the area safe, replacing the fire engine and the DPW garage work. Carol Grimm stated that the Finance Committee has a free cash priority and also that some items in the budget such as snow /ice and special education are underfunded and money will need to be put aside for that. Dr. Harutunian confirmed that all additional state aid, including lottery money, would be included in the prioritized put backs. Chair McDonald stated that the Council had agreed on a strategy for balancing the budget and will look at the put backs at a later date. ADJOURN At 9.35 p.m. Mr. Twomey made a motion to adjourn. Ms. Cavicchi seconded the motion The vote was 6 -0 Ms. Cavicchi, Mr. Dahl, Ms. D'Antona, Mr. Stohlman, Mr. Twomey and Ms. Williams. 4arry spe, ctful l itted, arutunian, Ph.D. Superintendent of Schools