HomeMy WebLinkAbout2019-02-27 Finance Committee Minutes � OFH
Town of Reading
Meeting Minutes
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Board - Committee - Commission - Council:
Finance Committee 2019 MAR —7 4[18: 17
Date: 2019-02-27 Time: 7:30 PM
Building: Reading Town Hall Location: Conference Room
Address: 16 Lowell Street Session: Open Session
Purpose: Budget Meeting Version: Draft
Attendees: Members - Present:
Chair Eric Burkhart, Vice Chair Mark Dockser, Paula Perry, Shawn Brandt,
Mark Moll, Anne Landry, Karen Herrick, Daniel Dewar
Members - Not Present:
Paul McNeice
Others Present:
School Committee Members: Chair Elaine Webb, Vice Chair Linda Snow
Dockser, Charles Robinson, Geoffrey Coram
School Superintendent John Doherty, Chief Finanacial Officer Gail Dowd,
Assistant Superintendent Christine Kelley, Interim Director of Student
Services Sharon Stewart, Facilities Director Joe Huggins
John Parks, Thomas Wise
Minutes Respectfully Submitted By: Jacquelyn LaVerde
Topics of Discussion:
Chair Erick Burkhart called the Finance Committee to order at 7:33 pm.
School Committee Chair Elaine Webb called the School Committee meeting to order at 7:33
pm.
Mr. Burkhart stated that this is the first of three budget review meetings, beginning tonight
with the School Committee, and continuing next week with the Town Manager's budget. He
thanked the Finance Committee members who submitted questions ahead of time, attended
School Committee and Select Board budget presentation meetings, and thanked the School
Committee members for providing answers to the Finance Committee's questions.
Gail Dowd, Chief Financial Officer for the School Department, stated that the budget
presented in December was the budget approved in January with no significant changes.
She acknowledged the many questions the Finance Committee asked regarding capital
projects and noted that the School Committee just received a memo providing project
status updates, which was shared with the Finance Committee. The next update on the
status of capital projects will be at the School Committee meeting on March 28, 2019, to
which the Finance Committee and Select Board will be invited so that all members of the
Committees and Board can receive the update at the same time.
Ms. Dowd provided an update on staffing and stated that there is still a 1.8 FTE position at
the High School for which they are still recruiting. She reminded the Committee that the
school year really begins in September, as opposed to July when the fiscal year begins, and
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because the school year Is only half over, It Is difficult to provide the status of the current
school budget. The staff spent a significant amount of time addressing Special Education.
Ms. Perry asked how the School Department is addressing Special Education and how they
might try to rein in future costs. Ms. Stewart explained why it is so difficult to predict
because the need Is related to each Individual child. There could be any number of students
requiring specialized education. The needs vary student to student and can change rapidly.
Students can enter and exit special education programs throughout the year for many
different reasons. Special education is very staff intensive. Every child Is different and their
needs can affect class size, teachers, and specialists needed. It is also a challenge to
predict because the budget process which begins in the fall plans for a year to eighteen
months in the future. A child's needs can become more apparent and intense as they age.
Research and experience cannot account for all variables and containment of costs becomes
challenging. It is not due to lack of planning, rather having to immediately address the
varying nature of a child's needs as they become apparent. The district is required to
provide free and appropriate education programs that enable the student to make
meaningful educational progress, which can mean having to pay tuition out of district.
Mr. Dockser asked if it was an unfunded state mandate driving that requirement. Ms.
Stewart explained that Massachusetts enacted the Free Appropriate Public Education (FAPE)
law in 1974, and the federal government enacted it in 1975, knowing they would not be
able to meet the obligation of funding up to 40% of special education to states. The closest
the federal government has ever come is 17%. The federal government provides funds
through the Individuals with Disabilities Education Act (IDEA) entitlement grant to states,
which Massachusetts distributes to cities and towns based on a formula with figures from a
few years ago. These funds are used to supplement, not supplant our programs. In order
to receive the funds, the district must comply with all regulations of the grant.
Mr. Dockser asked if the new Director of Student Services will evaluate the district's
programs and how they could change. Ms. Stewart stated the new director will address the
issue. Mr. Burkhart asked how long an evaluation like this might take. Ms. Kelley stated it
is the hope that the new director will be hired on March 2V and will get up to speed as
quickly as possible. Ms. Dowd noted that this will entail a constant review of programs, and
while it is a goal to establish a special education plan, it is an ongoing assessment. Mr.
Burkhart asked if the department considered using an outside consultant to support the
evaluation. Ms. Webb noted that the department would need to budget for a consultant and
still has to consider the need for FTEs for programs.
Mr. Dockser asked how Reading compares to other communities on per pupil spending. Ms.
Dowd noted that DESE has stopped providing the cost per pupil in 2015 as every district is
so different and Includes different factors in their calculations. Dr. Doherty estimated that
the percentage of Reading students on IEPs is average to slightly below average.
Mr. Dockser asked about prepaid tuition. Ms. Dowd reviewed various sources of grant funds
the district receives including: the IDEA grant, a majority of which Is used to pay for staff;
and the Circuit Breaker grant, which is money received for extraordinary relief and is
received based on each student, not globally. The district Is fortunate to be using last
year's Circuit Breaker funds this year. Ms. Dowd explained when the district is in good
financial shape, Massachusetts General Law allows pre-payment of next year's tuition using
current year funds, which helps alleviate future expenses.
Mr. Dockser asked how the district utilizes best practices with legal counsel when working
with special education decisions. Ms. Stewart stated that the director will review what has
been done for the child. Teachers and psychologists are more directly involved with cases.
The director may consult with an attorney for case assessment and to help prepare and
review cases. Attorneys may make recommendations; however, the district wants
educators making decisions, not attorneys.
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Mr. Dockser asked whether the scope of the space study will consider available space in
Town. Ms. Dowd stated that the study will look at enrollment projections based on census
and population changes, and from a development perspective. The space part will look at
existing schools, how they are utilized, and programmatic needs. The district does not want
to build the wrong school the wrong size in the wrong location. Dr. Doherty noted that the
representatives from the School will attend the Finance Committee meeting on March 13th
for the capital discussion and will address the space study and capital questions at that
time. Ms. Dowd added that the study is in the very early stages, a consultant has just been
engaged, and the School department will continue to provide meaningful updates in a timely
manner. Mr. Brandt asked if the consultant is considering space outside of the School's
portfolio. Ms. Dowd stated that the consultant is being asked to look at all space needs.
Options might include expanding buildings, tearing down and rebuilding them, or building
on a new site. Ms. Perry asked if enrollment has shifted. Dr. Doherty stated that program
needs have changed significantly. The last enrollment study was done in 2001 and it is time
for another one. Ms. Webb added that program and student needs drive space needs and
these things have shifted.
Mr. Dockser asked if there was allocation for operating activities if turf 2 does not last into
FY20. Ms. Dowd stated that additional funding was allocated in the athletics budget to
provide for busing students and to work with other districts to utilize their fields for home
games should turf 2 becomes unplayable.
Ms. Landry asked how schools compare to each other within the district. Ms. Dowd stated
that it Is not calculated. Each school has a per pupil allocation in their budget. It is difficult
to calculate because some buildings have different programs, and other factors such as
seniority of staff can skew the stats. Dr. Doherty stated it is better to compare factors that
are not directly financial related such as class sizes, and the types of programs offered at
the different schools.
Ms. Perry asked whether the School department has a sustainable business model
considering salaries are the biggest expense and what would be a base line for level service.
Ms. Dowd stated that the contracts have been settled and will be up for renegotiation in
three years. After three years it Is unknown what the salaries will be. The teachers'
contracts were settled at 2.5%, but when factoring in cost of living adjustments, steps on
average Increase 4.2%. Other bargaining units might be lower, and non-represented
groups are difficult to attract and retain, so they need to utilize a better market rate.
Mr. Brandt recalled a point that Nick Boivin, School Committee member, made at a January
meeting where he noted that the department lives In a budget constrained world and
decisions need to be made to accommodate immediate needs that may result in eliminating
future opportunities. He asked how the School department plans for the long-term
elements, whether there are things they can identify as a missed opportunity as a result of
budget constraints, and where in the budget process those decisions are made. Dr. Doherty
stated that through the budget process, the district leadership team compiled the needs of
special and general education throughout the district, and using best practices put forth the
best budget possible with the resources available. Ms. Stewart added that they look at
global priority areas, then delve deeper to find a way to balance competing needs. Ms.
Dowd stated that every year everyone has a wish list, and when it is all compiled, they look
at the current situation and where a decision may take them In the future. Ms. Kelley
stated that they start with the things that they have to provide, then focus on the items
they would like to provide, and creatively try to find solutions to provide them, such as
collaborating with other districts. The plans usually look three to five years ahead and
factor in changes in state requirements. Ms. Webb noted that they have been trying to get
ELA and STEM coordinators for fifteen years, but have not been able to add them due to
resource limitations. Other programs she would like to see added are full day kindergarten,
and Wednesday half-days. However, it all requires additional funding, staffing, and space.
Dr. Doherty added planning time for staff and elementary counseling would help to alleviate
future problems.
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Mr. Burkhart asked if additional counseling is a recent need, or if the department has just
not been able to address it. Dr. Doherty stated that the need has been there for a while,
but they have tried to prioritize tier 1 supports for social emotional learning. The needs of
the students are changing and the School Psychologist needs to fill a dual role of testing and
counseling. Ms. Kelley stated that professional development is a great Investment. Mr.
Robinson added that every year, the first thing on the chopping block is professional
development and trying to add funds back the following year is difficult. Dr. Doherty added
that professional development is critical and it is tough to figure out how to give staff the
time to train, learn, and implement those materials, and practice new skills.
Ms. Webb thanked the School Department staff for their hard work to research and put
together a well-balanced budget, and thanked the Finance Committee for their support and
guidance.
Mr. Burkhart echoed Ms. Webb's appreciation to the School Department staff and School
Committee for putting together the budget and for taking the time to answer the
Committee's questions.
Motion to adjourn the School Committee meeting by Mr. Coram; second by Ms.
Snow Dockser. Vote 4-0-0.
School Committee adjourned at 9:15 pm.
Motion to postpone approval of October 10, 2018 minutes to March 6, 2019;
second by Mr. Moll. Vote 8-0-0.
The Committee briefly discussed upcoming meeting agenda items. Mr. Burkhart noted that
the Finance Committee vote on Town Meeting warrant articles Is currently scheduled for a
meeting on March 20, 2019. However, if time allows at the March 13, 2019 meeting to
complete the vote, the March 20th meeting might not be needed.
Motion to adjourn by Mr. Brandt; second by Mr. Dockser. Vote 8-0-0.
Finance Committee adjourned at 9:20 pm.
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