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HomeMy WebLinkAbout1998-03-18 School Committee MinutesA READING SCHOOL COMMITTEE Reading, Massachusetts BUDGET COUNCIL March 18, 1998 CALL TO ORDER Chair Keigley requested that the Budget Council come to order at 7:35 p.m. Present were School Committee Members D'Antona, Stohlman, Twomey and Williams and Superintendent Harutunian. Also present were members of the Board of Selectmen, Finance Committee members, members of the Library Board and Town Manager Hechenbleikner. Chair Twomey called the School Committee to order. Selectmen Anthony called the Board of Selectmen to order. Finance Committee Member Grimm called the Finance Committee to order. Dr. Harutunian introduced the new Director of Facilities Jeff Griffin. PEAT MARWICR PRESENTATION Representatives from Peat Marwick gave a presentation on their study of the maintenance needs of the town of Reading. A Finance Committee member asked how it was determined which towns to use as comparisons. Chair Twomey advised that these are the nine towns that were agreed upon during negotiations several years ago by the Reading School Committee and the Reading Teachers Association to be used as comparables several years ago. There was a broad range of criteria used to select these towns. Chair Keigley advised that he was not opening the meeting up for general discussion. Selectman Anthony suggested a meeting with the three boards at a later date to discuss the issue. School Committee Member Stohlman stated that he thought he was here tonight to discuss the study. Mr. Stohlman made a motion to discuss the Peat Marwick presentation this evening. E BUDGET COUNCIL -2- March 18, 1998 Finance Committee Member Grimm advised that the Finance Committee was not informed that this presentation was being given this evening and was not prepared to discuss the presentation at this time. Mr. Stohlman agreed to withdraw his motion. Chair Keigley advised that the Superintendent would like to table the vote on the budget. Dr. Harutunian would like the opportunity to make a presentation to the Finance Committee regarding proposed cuts and how they would affect the School Department. Selectman Ensminger asked if any of the Finance Committee votes regarding the budget carried by 5 or more. A representative from the newspaper read a list of votes from his notes. Chair Keigley stated that the Finance Committee is non - biased and is not looking at the budget as town side and school side. Richard Foley made a presentation to the Budget Council. Chair Keigley informed the Council that the Finance Committee did recommend no further free cash transfers to the FY99 budget and no new projects for FY2000. Mr. Stohlman stated that last year's policy of the Finance Committee was that free cash balance be equal to 5 %. At the end of the fiscal year we will have less, how does the Finance Committee reconcile this? Finance Committee Member Grimm stated that the policy states the goal is 5% cash reserves at the beginning of the year and shall not fall below 3% and, we have not. A member asked at what point is the bond rating affected? Ms. Klepeis stated that there is no specific percentage. This policy helped us to get AA rating and need to not have as many transfers as this year. Raters look at financial management and trends also. BUDGET COUNCIL -3- March 18, 1998 Town Manager Hechenbleikner stated that we have 13 unsettled union contracts as of July 1. If they come in higher than estimates, will need to look at this situation. Mr. Stohlman asked what the Burbank revolving fund is. Town Manager Hechenbleikner stated that it is an article at spring town meting generating cash back to the town. This is rent that from Burbank arena that is two years ahead of schedule. This is proposal to set up revolving fund to offset cost of capital expenses. Ms. D'Antona asked what the criteria is, will it be spent down every year or will it accumulate. Town Manager Hechenbleikner stated that it is subject to annual authorization by town meeting. Chair Keigley asked whether the Council wanted to hear from Dr. Harutunian regarding the Superintendent's motion to table the vote on the budget. Dr. Harutunian stated that he does not expect to change the budget but wants the Finance Committee to know what the cuts will entail. He stated that the cut of approximately $800,000 will actually turn out to be closer to $1,000,000. Dr. Harutunian advised that he is trying to move the teachers' negotiations forward, if the contract is not settled this will compound the free cash problem. Dr. Harutunian discussed the increased enrollment and suggested that the Budget Council direct the Superintendent and Town Manager to, over the next 3 months, map out a three year operational budget and bring the information back to the council in the spring. Selectman Anthony stated that she understands his concerns but the reality is you can only increase revenues by a certain percentage. She stated she believes at this point have to think about a debt exclusion. Selectman Hines stated that he is concerned that the Superintendent is discussing a $800,000 cut but in reality the Finance Committee, is actually recommending a $2 million increase in school budget. BUDGET COUNCIL -4- March 18, 1998 Chair Keigley stated that it is actually $1.46 million. The Finance Committee made a $800,000 cut out of the figure that was presented to the Finance Committee. Ms. Williams stated that the capital plan continues to inch up. The situation is only going to get worse. Need to cover what is happening further down the line. Town Manager Hechenbleikner stated that the major concern is that the budget must go to press next Wednesday. Selectman Ensminger moved that the Board of Selectmen accept the recommended budget of $11,414,036 as stipulated by the Finance Committee. Ms. Hoyt seconded the motion. The vote was 4 -1, Mr. Hines voted no. Mr. Stohlman stated that in the past we have caucused before voting and he would like to meet with his committee to discuss. At 9:35 p.m. Ms. Cavicchi arrived. Chair Twomey stated that the School Committee has not had an opportunity to debate and would like to have meeting with Finance Committee to go over cuts. The $800,000 cut combined with the Finance Committee's policy that they will not vote for requested transfers from free cash and not knowing where the seven union negotiations will come out, we are in a precarious situation. Chair Twomey stated that we may have to back off other items to be sure we can cover negotiations. At 9:45, the School Committee went to caucus and decided to give a presentation to the Finance Committee tonight in order to give the Committee an opportunity to review the cuts. Mr. Stohlman stated that the Finance Committee prefers not to craft a solution he stated it is in our best interest to prepare a solution. Chair Keigley called the meeting back to order at 10:15 p.m. Dr. Harutunian made a presentation to the Council on the proposed cuts. He distributed information on per pupil expenditures, proposed cuts, and a list of the school department's budget increases over the last six years. Dr. Harutunian advised that the average school department increases over the last six years BUDGET COUNCIL -5- March 18, 1998 is 3.4 %. He stated that he will have to cut regular ed to pay for SPED which is mandated by law. He will need to recommend substantially larger class sizes and may need to lay off teachers. The school department's budget is 83% salaries. Last year closed the campus at the high school as part of ed reform and need to provide more classes to keep students in class 6 out of 7 periods. Selectman MacDonald stated that the School Committee must have see this coming and asked why the School Committee hasn't taken the initiative to go to town and ask for over ride. Mr. Stohlman stated that the Budget Council in the past has stated that if they are unable to agree on a budget, they agree to disagree at town meeting. Mr. Stohlman moved that the Superintendent work with appropriate people to develop a status quo budget and work to understand an equivalent status quo budget for the town and Monday present proposal saying this is status quo for schools and town and if revenues are less than budget can sustain, propose cut in proportion to expenditures, FY99, and if revenues are more, propose add proportionally. Ms. Cavicchi seconded the motion The vote was 4 -0. •F=_�1���I +1�i�I Ms. Cavicchi made a motion to adjourn at 11:25 p.m. Ms. D'Artona seconded the motion. The vote was 4 -0. Ms. Cavicchi, Ms. D'Antona, Mr. Stohlman and Mr. Twomey. Respectfully submitted, Harry K. Harutunian, Ph.D. Superintendent of Schools