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U#46 FY’11 BudgetBoard Approved – 1/21/10

OverviewEssex High School (EHS) Budget

General Fund – Including Tax ImplicationsCapital Plan

Center for Technology, Essex (CTE) BudgetGeneral Fund

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Board Guidance

Maintain the high level of educational quality presently found in the District.Support the essential elements of the School Action Plan analyzing current practices as well as unfunded requirements and adjusting as necessary for enrollment.EHS Budget

Be sensitive to the burden on the tax payers.CTE Budget

Maintain a level assessment for sending districts.

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At A GlanceEHS General Fund

Expense budget = $22,182,502Represents an increase of $94,921 or 0.43%Factoring in additional revenues, Education Spending shows a decrease of $2,623 or -0.02%Sustains lower level of expense – FY’10 budget decreased 2.6% & FY’11 budget remains $500K below FY’09

U#46 Capital Plan1% of the EHS General Fund budget = $221,825

CTE BudgetExpense budget = $8,449,228Represents an increase of $248,909 or 3.04%Factoring in additional revenues for increased enrollment, tuition will be the same or lower than FY’10

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EHS General Fund

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Educational Quality

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Enrollment Projection

FY’10 projection was for 1,371 but the Oct 1 count was 1,380 (approx 0.7% variance)5 less tuitioned, 13 more ET & 1 more EJ

FY’11 projection shows significant drop in all three areasMost tuitioned students come from Westford, Georgia, Grand Isle and South Hero ET forecasted to settle at about 550EJ forecasted to settle at about 500

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EHS Overview

Draft Budget

Started at $541,585

Compare to 2.2% inflation

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EHS Overview

Supplies, Equipment, Routine Maintenance, Travel, Testing Materials, Books, Copiers, Postage, etc.

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EHS Overview

(1.1%)

(1.3%)

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Since Salary and Benefit costs make up 70% of the budget, even inflationary adjustments such as pay raises or health rates cause significant budget increases. However, this situation was greatly diminished in FY’10 and FY’11 due to staffing reductions.

Salaries – Minor staffing increases and cost of living are offset by course section reductions due to declining enrollment. See next slide.

Benefits – Staffing reductions help to minimize cost increases in benefits. Health insurance rate increase is 3% for FY’11.

Salary & Benefit Expense

Significant Budget Changes

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Staffing Adjustments

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Tech Tuition Expense

Significant Budget Changes

Tech tuition paid for EJ and ET students attending technical centers (largely CTE). The EHS six-semester average increased by 1.4.CTE held total tuition stable; State’s on-behalf payment increased.

SpEd tuition is driven by necessary outside placements – the increase is 2%. The Professional Service increase relates to an Autism consultant contract that is in place

for FY’10, but was not budgeted.Increased SpEd revenues offset these minor increases.

Special Education Expense

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Significant Budget Changes

Requirements in this area are prioritized each year. The FY’11 increase is driven by a project to reconfigure the gym to create a 3rd basketball court .

These requirements include telephones, telecommunications, hardware and software. Hardware requirements are prioritized each year. Prior year investments in technology hardware and software licenses resulted in a decreased requirement for FY’11.

Technology

Maintenance

The increase in this area is associated with the addition of a contracted bus route to/from the islands to bolster tuitioned student enrollment.

Transportation

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Debt Expense

Significant Budget Changes

The majority of this requirement is for long term debt. CTE pays for its share of the OneCampus & Library projects. Interest payments decrease each year and we were also able to apply some State Construction Aid to offset the expense.

Short term debt, to ensure positive cash flow, is another requirement in this line. Act 130 improved our cash flow which decreased our need to borrow.

Other

This category includes hundreds of line items for supplies, equipment, routine maintenance, travel & conference, testing materials, books, copiers, postage, etc.

While there are many individual changes, book purchases represent a significant decrease. The Math and Science Departments both made large book purchases in FY’10.

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Driven by an anticipated drop of 25 tuitioned students in FY’11. However, the addition of a bus route to the islands should reduce that impact by at least three students. Also, the drop in students is partially offset by an increased tuition rate.

Revenues

Significant Budget Changes

Minor increases in student needs (and associated costs) result in a higher level of SpEd revenues from the State.

Application of surplus from FY’09.

Adjusted downward to be more in line with recent interest earnings.

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Tax Calculations

If all students in EJ & ET were Gr 9-12

EJ up from 34.59% ET down from 37.35%

EJ down from 98.78% ET down from 98.31%

BEA set by Legislature –no allowance for inflation

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Tax Rate Comparisons/Implications- Homestead rate increase would be $0.004 if base rate and Gr 9-12 % had not increased- Income Sensitivity increase would be 0.01% without Gr 9-12 % increase

ET impacts artificially lower than EJ due to a

decrease in % of Gr 9-12 students

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SummaryEHS General Fund

Attempted to reduce costs to the maximum extent possible without impacting educational quality

Made staffing reductions in line with student enrollment decline

Leveraged fund balance and State Construction Aid to offset expense increases

Overall expense increase held to 0.43% with Education Spending decrease of -0.02%

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U46 Capital Plan

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U46 Capital Plan

Limited to 1% of EHS General Fund budget

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ProFoods Classroom/Freezer

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ProFoods Classroom/Freezer

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CTE General Fund

306.02 304.78299.05

308.79

328.55338.83 337.58

348.76

370.69

400.66418.28

423.91

290310330350370390410430450

FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY'09 FY'10 FY'11 FY'12

Oct-99 Mar-00 Oct-00 Mar '01 Oct '01 Mar '02 Oct '02 Mar'03 Oct '03 Mar '04 Oct '04 Mar '05 Oct '05 Mar '06 Oct '06 Mar '07 Oct '07 Mar '08 Oct '08 Mar '09 Oct '09 Mar '10 Oct '10

Six Semester Average

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Six Semester Average

• Actual amounts may differ slightly from DOE due to rounding.

FY'12 Estimated

Increase of 17.62 students

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CTE Overview

Expenses reduced enough to come in below $15,100 (FY’11 Announced Rate)

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CTE Overview

Supplies, Equipment, Routine Maintenance, Travel, Testing Materials, Books, Copiers, Postage, etc.

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CTE Overview

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Significant Budget Changes

Salary & Benefit Expenses

Salaries – Reflects the equivalent of one additional teacher associated with increased academic support for additional students - although there are many other adjustments (up & down). See next slide.

Benefits – Staffing increase drives some additional benefit costs. Health insurance rate increase is 3% for FY’11.

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Staffing Adjustments

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Significant Budget Changes

Instruction Expenses

CTE continues to expand their program with the Vermont Youth Conservation Corps (VYCC). Increased participation in this program leads to a higher six-semester average and additional revenue. This increased cost relates to VYCC Team Leaders.

Other Expenses

This category includes dozens of line items for supplies, equipment, routine maintenance, travel & conference, testing materials, books, copiers, postage, etc.

While there are many individual changes, the most significant decrease is in the area of equipment. The FY’10 budget included many equipment items that had previously been deferred.

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Significant Budget Changes

Revenues

The State contribution for tuition is made up of:Tech Education Funding: Per pupil amount was held at $7,433Tuition Reduction Grant: Per pupil amount was held at $2,990

CTE’s six-semester average count increased by nearly 18

The portion of tuition paid by sending districts will be at or below the announced tuition of $15,100 which was held at the FY’10 level. However, the increase in six-semester average is significant enough to result in additional revenue in this area

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Tax Implications

CTE receives revenue from:Federal & State GrantsTuition from sending districtsLocal revenues from programs such as Culinary, Child Care

and Printing

By and large, the only tax implications to Essex Town and Essex Junction residents is the amount reflected for tuition in the EHS budget

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Summary

CTE General FundStaffing increases to accommodate additional students is beginning to level off

Equipment investments in FY’10 alleviated the need for major investments in FY’11

FY’11 announced tuition level with FY’10 – actual tuition charged may even decrease

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Informational Hearing & Vote

April 12 Informational HearingEssex Community Educational Center7:45 p.m. in the Auditorium

April 13 Budget VoteEssex Community Educational Center7:00 a.m. – 7:00 p.m. in the Auditorium