Budget Liaison Presentation

Reading Public Schools

November 28, 2017

Agenda for Today

• Budget Liaisons

• Budget Process

• How our goals align to the budget

• FY19 Budget Overview

• Calendar of Events

• Questions

Budget LiaisonsBudget Liaison Presentation

Budget Liaisons

Community members or parents who have children in the Reading Public Schools may become a budget liaison. Our intent is to have two budget liaisons per school, up to four from the community at large and two parents to represent the Special Education Parent Advisory Council (SEPAC).

Responsibilities of Budget Liaisons

• Participate in meetings with the Superintendent of Schools and Director of Finance from November-February to learn about the school department budget and the budget process.

• Work with the Superintendent and the Director of Finance to give feedback on the budget and the budget process.

• Understand how the budget and the budget process works and be able to explain the budget and the process to other members of the community.

• Act as a liaison between the school department and their child’s school or community by reporting back to other parents and community members both formally (PTO, School Council and SEPAC meetings) and informally.

• Attend School Committee meetings and other relevant meetings during the budget deliberations in January and February.

Time Commitment of Budget Liaisons

• Meetings will begin in late-November. The month of January is a busy month with six meetings in ten days. February will have one meeting.

• The following School Committee meetings in January and February are dedicated to the FY19 budget. The Budget parents will meet prior to these meetings.

• January 8, 11, 13, 16, 18, 24 (Financial Forum)

• February 7 (School Committee FY19 Budget Presentation to Finance Committee Meeting)

Please note that each budget parent does not have to attend every meeting. We would always like at least one representative from each school at each meeting.

Budget ProcessBudget Liaison Presentation

Types of Funds

• Operating Budget Funds

• All of the salaries, materials, supplies, and services needed to operate the school district

• Revenue sources include property taxes, state aid, excise tax, fees, sale of land

• Property Taxes can only increase 2.5% per year plus any new growth unless community decides on a Proposition 2 ½ override

• Any funds at the end of the fiscal year need to be returned to the Town’s General Fund

• Capital Funds

• Targeted at 5% of the operating budget

• Funds capital improvement projects (i.e. roof replacement) or purchases (i.e. fire truck)

• RMHS litigation is being funded for next 10 years from this fund

• Cannot use capital funds to support operating budget

• Grants and Revolving Accounts

• Funds raised either by user fees, tuitions, ticket sales, or receiving grants

• Must be used for specific purposes (i.e. Full Day Kindergarten)

8

Budget Fundamentals

Budget consists of five “Cost Centers”

• Administration

• Regular Day

• Special Education

• District-wide Programs

• Athletics

• Extracurricular

• Health Services

• Networking and Technology Infrastructure & Maintenance

• School Buildings (Facilities)

AdministrationSmallest Cost Center

This Cost Center funds:

• Central Office Administrators and Administrative Assistants

• Legal and Auditing

• Employee Recruiting and Hiring

• Data and Information Management

• District Telecommunication Services

• Annuity Matching Contributions

• Miscellaneous Supplies & Expenses

Regular DayLargest Cost Center

This Cost Center funds:

• Building Administrators and Secretaries

• Regular Education Teachers , Tutors, and Paraprofessionals

• School Psychologists and Guidance Counselors

• ELL and Instructional Specialists

• Teacher Mentor and Leadership Stipends

• Curriculum Materials

• Professional Development

• Substitute Teachers and Paraprofessionals

• Mandatory Student Transportation ( > 2 miles for K-6)

• Instructional Materials and Supplies

• Instructional Technology and Equipment

• Library Materials and Technology

• Testing and Assessment Software and Materials

Special Education

This Cost Center funds:

• Special Education Administrators and Secretaries

• Special Education Teachers and Paraprofessionals

• Therapeutic Specialists (OT, PT, SLP)

• Extended School Year Program Staff and Expenses

• Legal Services

• Home and Hospital Tutoring

• Consultative and Evaluative Services

• Adaptive Equipment and Technology

• Testing and Assessment Software, Materials, and Services

• Instructional Materials and Supplies

• Transportation

• Out-of-District Tuition

District Wide Programs

This Cost Center funds:

Athletics

• H.S. Assistant Principal (0.5 FTE), Secretary, and Coaches

• Officials, Event Detail, and Crowd Monitors

• Equipment and Field Repair and Maintenance

• Facility Rentals (Pool, Ice Arena)

• Transportation

• Equipment and Supplies

Extracurricular

• Assistant Principal (0.25 FTE) and Advisor Stipends

• Fees, Memberships, Royalties, and Transportation

• Supplies & Equipment

District Wide Programs (cont.)

Health Services

• Director of Nursing and School Nurses

• School Physician

• Medical Supplies and Equipment

Networking & Technology Infrastructure/Maintenance

• Network Manager and Technology Support

• Computer Technicians

• Internet Service

• Software and Licensing

• Network, Infrastructure, and Telecommunications Repair and Maintenance

• Network, Infrastructure, and Telecommunication Supplies and Equipment

School Building Maintenance (Facilities)

This Cost Center funds:

• Custodial Manager

• Custodial Staff

• Custodial Equipment and Supplies

• Cleaning Services (RMHS, Coolidge)

What’s Not In the Budget?Funded by Grants, Donations, User Fees, Other Fees

• Field Trip Expenses

• Additional Technology Hardware

• Food Services

• Non-Mandatory Student Transportation

• Before and After School Programs

• Enrichment Programs

• Students’ Supplies

• Additional coaches for athletics

• Additional advisors for drama, band, and other activities

• Additional tutor support

• Research and Development

What Grants, Fees, Tuitions, and Donations Fund

• Teachers

• Paraprofessionals

• Tutors

• Transportation (Non-mandatory and METCO)

• Field Trips

• School Supplies

• Enrichment Programs

• Technology

• Coaching assistants

• After and Before School Program

• Food Services

• A Portion of Athletics, Extracurricular, Pre-School, and Full Day Kindergarten

Grants We Currently Receive

• State Grants

• Racial Imbalance (Metco)

• Federal Grants (Entitlement Grants)

• Title 1

• Title 2A

• Title IV

• IDEA

• Program Quality Grant (Special Education)

• Early Childhood Education

• Federal Grants (Competitive)

• School Transformation Grant

How Our Goals Align to the Budget

Budget Liaison Presentation

District Improvement Plan Goal 2016-19 School Years

To ensure the success of all students, over the next 3 years the Reading Public Schools will increase student engagement, improve academic achievement, decrease discipline referrals, and enhance parent and community two way communication. We will address the academic, social-emotional and behavioral health needs through a comprehensive multi-tiered system of support (MTSS) framework of data, systems, and practices.

Four Focus Areas Related to Goal

• Closing the Achievement Gap (Action Plan A)- To focus our energy and effort in identifying and implementing evidenced based instructional practices and interventions which will close the achievement gap with our students, in particular, our students in the high needs group (special education, English Language Learners, economic disadvantage).

• Literacy (Action Plan B)-To improve literacy instruction in all subject areas across the district by providing teachers with time and training, timely supervision and coaching, evidenced based tier 2 student interventions, clear expectations, and a pacing chart.

• Mathematics Practices (Action Plan C)- To improve mathematics instruction across the district by providing teachers with time and training, timely supervision and coaching, evidenced based tier 2 student interventions, and clear expectations and pacing chart.

• Social Emotional Learning (Action Plan D)-To focus our energy and effort in identifying and implementing evidenced based instructional practices and interventions which will improve social emotional learning for all students.

In addition to the above focus areas, there is one additional area, Communication (Action Plan E) which will be continued from last year.

What we are focusing on for 2017-18 School YearBecause of limited resources throughout the district, we are focusing our training and materials purchasing in a few key areas that are aligned with our District Improvement Plan Goal and focus areas.

• Writing at the Elementary Level (Focus Area B)-In Grades K-5, we are providing training and support materials in the area of Writer’s Workshop. This model is an interdisciplinary writing technique which can build students' fluency in writingthrough continuous, repeated exposure to the process of writing.

• Science Curriculum Implementation (Focus Area A)-We are currently in Year 2 of our Science Curriculum implementation. During the 2017-18 school year, we are potentially piloting some lessons in Grades K-2, continuing implementation in Grades 3-8, and beginning implementation in Grades 9-12. The funding for this school year is providing online interactive curriculum material, technology hardware to support the curriculum, and training to implement the instructional strategies to support the curriculum.

• Implementing Advisory at the Middle School Level (Focus Area D)-Both Middle Schools have been restructuring their advisory period to focus more on social and emotional learning. This year they are implementing Facing History and Ourselves, a program which helps students learn about hatred and bigotry with the intention of stopping these types of incidents from happening in the future. The outcomes of the program foster empathy and reflection, improve students’ academic performance, and build safe and inclusive schools.

• Level consolidation (Focus Area A and C)-Both the middle schools and the high school have begun consolidating level classes to support closing the achievement gap. At the middle school, math levels have been reduced from three levels to two in Grade 7 this year and will continue next year in Grade 8. At the High School, each department is phasing in the consolidation differently. Science is consolidating to two levels in Grade 9, Social Studies has consolidated to two levels in Grades 9 and 10, and English is consolidating in Grades 9 and 12. Training is being provided to staff and intervention blocks are scheduled to support students as this process is being implemented.

• Review of Special Education Language Based Programs (Focus Area A)-We are focusing this year on a review of our language based (Bridge) Special Education Programs and specialized reading services. This will include parent and teacher feedback, as well as having an outside consultant that specializes in language based program reviews participate in the process.

District to Teacher Implementation

District

Improvement Plan

• 1 Goal

• 4 Action Plans

• Superintendent's Educator Plan

School Improvement Plans

• 8 Schools and 1 Preschool

• Principal's Educator Plans

Teacher Educator Plans

• Student Learning Goal

• Professional Practice Goal

FY19 Budget Overview

Budget Reductions FY13-18Year FY13 FY14 FY15 FY16 FY17 FY18

CurrentYearTotal

Amount of Teacher FTE Reductions - - 3.0 FTE - 6.3 FTE 6.4 FTE 15.7 FTE

Amount of other staff FTE

reductions - 1.5 FTE - 9.0 FTE 1.0 FTE 4.5 FTE 16.0 FTE

Total FTEReductions

- 1.5 3.0 9.0 7.3 10.9 31.7 FTE

Amount of personnel reductions - 24,000 170,000 135,000 374,000 650,000 1,353,000

Amount of non-personnel

reductions/offset increases 323,030 70,360 174,160 714,620 271,200 262,000 1,815,370

Total Budget Reductions

(323,030) (94,360) (344,160) (849,620) (645,200) (912,000) (3,168,370)

25

Note: Majority of Reductions Have been in Regular Day. Additional FTE have been added over the last several years in Special Education.

Why Are We in this Situation?

• Revenues can only increase by 2.5% each year, plus new growth

• Town of Reading does not have a large commercial tax base

• New growth is limited

• Some expenses (i.e. health insurance, special education) increase more than 2.5% leaving less funds for remainder of town and school budgets

• Chapter 70 Funding is not sufficient (approximately $100,000 increase per year)

• Override did not pass in October, 2016

• In order to maintain level service, budget increases need to be around 3.5-4% per year

26

Chapter 70 Education Funding (FY07-FY16)Percent Increase

13.2 13

3.1

9.5

3.9

0.5

4.4

1.1 1.2 1 1

0

2

4

6

8

10

12

14

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

% Increase

% Increase

27

Total FY16 Per Pupil vs. Comparable CommunitiesDistrict Per Pupil

ExpenditureRank District Per Pupil Expenditure Rank

Burlington $18,364 1 Walpole $13,551 20Concord $18,012 2 Wakefield $13,407 21Dedham $17,475 3 Milton $13,348 22

Lexington $16,941 4 Hanover $13,170 23Bedford $16,232 5 Natick $13,150 24

Westwood $16,179 6 Chelmsford $13,143 25Andover $15,501 7 Westford $12,783 26

Wilmington $14,722 8 Winchester $12,636 27Sharon $14,627 9 Franklin $12,505 28

Nashoba $14,451 10 Shrewsbury $12,352 29Westborough $14,450 11 Reading $12,331 30

Tewksbury $14,359 12 Easton $12,268 31Canton $14,286 13 Hingham $12,195 32Danvers $14,214 14 Belmont $11,951 33

Stoneham $14,207 15 Holliston $11,927 34Lynnfield $13,956 16 Marshfield $11,913 35

North Reading $13,849 17 Melrose $11,466 36Mansfield $13,811 18 North Andover $11,439 37

Longmeadow $13,652 19

Town of Reading FY19 Budget Process

• Establish Available Revenues (October)

• Estimate Projected Accommodated Costs (October)

• Subtract Accommodated Costs from Available Revenues to Determine Operating Budget Contribution

• Net Available Revenues are apportioned based on historical share of expenses

• School share for FY’19 allocated at 64.1%

Revenue Projection*

* Based on information presented at the October 11, 2017 Financial Forum

• FY19 & FY 20 Property Taxes assumes $500K and $600K new growth each year, respectively

• FY18 Other Local Revenue recognizes Excise Tax increase attributed to more people

• Intergov’t Revenues includes Chapter 70 funding which assumes a hold harmless $25 per student increase. Other Intergov’t Revenues assumes a 2.5% increase

• As with Health Care Premiums, Fincom has voted to fund any shortfall from Free Cash

• No new sources or significant changes in forecast

Town of Reading

Budget Summary One Yr One Yr One Yr

Projected Changes Projected Changes Projected Changes

FY18 FY18 FY19 FY19 FY20 FY20

RevenuesTotal Property Taxes 66,511,130 3.6% 68,560,019 3.1% 70,758,612 3.2%

Total Other Local Revenues 7,030,000 6.3% 7,280,000 3.6% 7,537,500 3.5%

Total Intergov't Revenues 14,109,667 1.8% 14,462,409 2.5% 14,823,969 2.5%

Total Transfers & Available 3,954,947 2.2% 4,042,174 2.2% 4,099,696 1.4%

Revs before Free Cash $ 91,605,744 3.45% $ 94,344,602 2.99% $ 97,219,777 3.05%

Free Cash 1,200,000 -44.2% 1,200,000 0.0% 1,200,000 0.0%

Net Available Revenues $ 92,805,744 2.32% $ 95,544,602 2.95% $ 98,419,777 3.01%

Accommodated Costs*

* Based on information presented at the October 11, 2017 Financial Forum

Accommodated Costs Projected FY18 % Change Projected FY19 % Change Projected FY20 % Change

Benefits 16,496,047 4.3% 17,605,849 6.7% 18,785,546 6.7%

Capital 2,259,400 2,925,600 29.5% 3,014,500 3.0%

Debt (inside levy) 1,884,811 1,526,876 -19.0% 1,698,957 11.3%

Debt (excluded) 2,983,582 2,944,282 -1.3% 2,902,482 -1.4%

Energy 1,989,950 1.3% 2,015,477 1.3% 2,095,890 4.0%

Financial 840,000 1.1% 852,250 1.5% 881,488 3.4%

Education - Out of district 4,033,670 -2.3% 4,445,834 10.2% 4,668,125 5.0%

Education - Vocational 386,000 0.4% 405,000 4.9% 421,200 4.0%

Miscellaneous 3,183,799 4.6% 3,280,751 3.0% 3,379,742 3.0%

Community Priorities 0 100.0% 0 0.0% 0 0.0%

Accommodated Costs $ 34,057,259 2.3% $ 36,001,919 5.7% $ 37,847,930 5.1%

Projected FY18-19 Accommodated Costs

Driving Factors

Health Care

Based on national trends and discussions with our consultant, we forecast premium increases above 8% annually for the next five years. In line with guidance from FINCOM, we have budgeted +7.5% annually. Fincom has agreed to support any shortfall from Free Cash.

Out of District Special Education Costs

Evaluating FY18 budget in place – the needs of the affected student population is uncertain. State Circuit Breaker Reimbursement was $200,000 less than last year. FY19 assumes 5% increase in OOD and a 5% increase in transportation.

Revenue and Accommodated Costs

• Town and School Operating budgets impacted by limited revenue growth and a continued growth in accommodated costs.

• Continued reliance on Free Cash to support Town and School Operating Expenses.

Town of Reading

Budget Summary Projected % Projected % Projected %

FY17 FY18 Change FY19 Change FY20 Change

Total Avail. Revenues 90,699,405$ 92,805,744$ 2.3% 95,544,602$ 2.95% 98,419,777$ 3.0%

Total Accom. Costs 33,443,039$ 34,057,259$ 2.3% 36,001,919$ 5.7% 37,847,930$ 5.1%

Total Revenue for Town/School FY19 Budgets

$95,544,602

Total Revenue

Total Revenue

Accommodated vs. Non-Accommodated Costs

38%

62%

Total Budget

Accomodated Costs

Non-Accomodated

Total Expense Breakdown

$36,001,919

$38,164,823

$21,358,456

Total Municipal and School Budget

Accommodated

Schools

Municipal

Budget Projection

Approved Allocated

FY'18 FY'19 %

Budget Budget Change

School Expenses

School Expenses (Non-Accommodated) $ 37,367,991 $ 38,164,823 2.13%

School Expenses (Accommodated) 4,033,670 4,445,834 10.22%

Total School Expenses $ 41,401,661 $ 42,610,657 2.92%

Projected Level Service Budget for FY'19 $ TBD

Projected Deficit $ TBD

School Department will Develop 2 budgets

• Baseline Balanced Budget (Below Level Service)

• Restore Budget (For Possible Override)

District Priorities for FY19Not All Areas Fully Funded

• Four Focus Areas

• Closing the Achievement Gap

• Literacy

• Mathematics Instruction

• Social Emotional Learning

• Class sizes in K-2 (18-22 students)

• Middle school interdisciplinary model

• Ensuring that RMHS Juniors and Seniors have access to coursework for graduation

• Joshua Eaton School Improvement Plan Process 39

Projected Budget Drivers for Basic FY19 Budget

• The funding of all contractual step and COLA increases for represented and non-represented employees

• We will be negotiating new collective bargaining agreements again this year

• An increase in special education tuition and transportation expenses.

• Addressing $450,000 in one time expense reductions and additional free cash allotment in FY18 budget to preserve 7.0 FTE middle school teachers

• A decrease in State Circuit Breaker grant program for special education

• An increase in athletic facility rental fees (pool and ice) and field maintenance

• An increase in athletic and regular day mandatory transportation

• An increase in contractual cleaning services for RMHS.

Reading’s Per Pupil Expenditure State Ranking(out of 326 School Districts)

41

232

241

255

272278

292

304 305 305

291295

206

226

246

266

286

306

326

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

S

T

A

T

E

R

A

N

K

State Rank for Per Pupil Expenditure

READING

Reading’s Average Per Pupil Expenditure vs State Average

$10,149 $10,407

$10,742 $10,749 $10,976 $11,051

$11,281

$11,807

$12,519

$13,284

$11,858

$12,448

$13,006 $13,047 $13,354

$13,637 $14,021

$14,518 $14,936

$15,544

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

READING STATE AVERAGE

Calendar of EventsBudget Liaison Presentation

Key FY19 Budget Dates

October 11 Financial Forum I

Jan 8,11, 13,16 & 18 School Committee Budget Meetings

Dec 12,13,19 & 20 Board of Selectmen Budget Meetings

January 18 School Committee votes budget

January 24 Financial Forum II

January 30 Town Manager Budget to FINCOM

February 7 FINCOM: School budget

February 8 FINCOM: Town budgets

February 14 FINCOM: Other

February 15 FINCOM: Vote Budgets & Articles

QuestionsBudget Liaison Presentation