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Town Council Special Meeting March 25, 2009 7:00 p.m.

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Presentation on theme: "Town Council Special Meeting March 25, 2009 7:00 p.m."— Presentation transcript:

1 Town Council Special Meeting March 25, 2009 7:00 p.m.

2 Budget Development Mindset  DOE potential penalty of $480,000 (Consolidation)  Current year expenditure curtailment of $475,000 (mid-year adjustment)  Curtailment impact – projected reduction of FY10 subsidy base  Projected reduction in Town’s new property tax value ($30M to $15M)  Manage increasingly complex student needs  Maintain educational program quality with diminishing revenues  Overall economic environment/enrollment spike

3 Budget/Expenditure Reductions (‘08-’09) to meet State curtailment ($475,000) Fund Literacy ed tech with grant $$17,000 Vacated positions left unfilled or reassigned (driver, ed tech)$50,000 Heating oil savings (lock-in price vs. budget)$34,000 Diesel fuel savings (actual vs. budget)$35,000 Tech director position left unfilled – duties redistributed$50,000 Staff turnover savings (teachers)$100,000 Electricity savings at HS (retrofits/controls)$40,000 Tech hardware/upgrades - delayed$30,000 School accounts (only direct instruction purchases)$40,000 Elimination of outside professional development$25,000 Trip elimination/reduction (field trips/athletics)$5,000 Contingency use$15,000 Building repair/maintenance delays$20,000 Use of capital funds/Mainecare revenuesAs needed

4 New Initiatives…Doing Business Differently  Kindergarten Model/Schedule  Athletics (transportation/game reductions/schedule)  Teacher Professional Development (new model)  Calendar Changes ‘09-’10  M.L.T.I  Revenue Exploration  Going forward:  Town/School District Collaboration/Consolidation  Future Contract Negotiations

5 AdditionsReductions Existing Personnel (contractual wage and benefit increases) $740K New Educational Requests $102K - RTI Math 0.5 FTE (mandate) - FHS Additional Course Sections (4) (enrollment) - Chinese (global focus) - FMS 0.5 FTE Social Worker (social/ emotional needs) All Other (insurance, fees, etc.) $43.75K Personnel Cost Reductions ($410K) Debt Service ($113K) Energy Savings ($137.5) School Accounts ($120K) Net: $105,2500.42% Expenditure Adjustments

6 Personnel Cost Reductions (Detail)  Grade 2 Teacher (class size)  Grade 5 Teacher (class size)  MS Sped (FLS) Teacher (program eval)  3.5 Sped Ed Techs (program eval)  Technology position (reallocated duties) Total savings $410,000

7 Other Reductions  Reduction of long-term debt service of $98,000 (retirement of athletic bond and reduced HS interest payments) and $15,000 retirement of bus debt  Locked heating oil price for FY10 at $1.92 per gal (savings in excess of $100,000)  Reduced electricity usage at High School by 40% (energy retrofits/night controls)  School building accounts (20% reduction or $120,000)

8 Revenue Picture/Impact Local Revenue Picture - Assumes approximately $132,650 in new property tax revenues ($15 MM vs. $30 MM) Federal Stimulus Packages - Restores previously curtailed expenditures (’08-’09) - Establishes FY10 state revenue base at FY09 level Impact: - Proposed ‘09-’10 mil rate:$ 0 - Projected tax increase/$100,000 property value$ 0

9 What About the Stimulus $$?  What’s known - Priority/commitment: restoration of curtailed funds ‘08-’09; status quo FY09-10, FY10-11, FY11-12  What’s unknown - Specific targeted amounts for Falmouth - True level of eligibility for receiving funds  What’s dangerous - Creating a “cliff” of expenditures that cannot be sustained when federal $$ dry up

10 Possible strategic uses of federal stimulus money  Short-term consultancy support - IT collaboration with Town/School - Professional Development--new model implementation  Investigation/seeding of Special Education and/or Alternative Education collaborations across area districts  Acceleration of program design development (RTI, K-12)  Investment in facilities infra-structure improvements (FMS energy upgrades)  Short-term accommodations of enrollment spikes/needs for intense instruction  Fixed asset purchases supporting education (e.g. technology)

11 Budget Validation Referendum  Required by the School Reorganization Law (January 1, 2008).  Allow Sufficient Time: “Additional time is required if the budget does not pass at the first validation referendum…[and]…should be scheduled well before the state-wide June referendum. If the budget is not approved at the first referendum, sufficient time may exist for the budget to be approved…before commencement of the next fiscal year.” (2007 School Consolidation II, Drummond Woodsum).  Reconsideration of the BVR: “Every three years the voters…are to consider whether the budget validation referendum process will be continued…[In year 3]…the budget validation referendum must include a separate question for the voters to indicate whether they wish to continue the process for an additional three years or discontinue the process.” (2007 School Consolidation II, Drummond Woodsum).  ‘09 BVR Target Date: May 5, 2009


13 Budget Development Outcome  Proven efficiency of operations and sustainability (Alternative Plan)  Hard road taken on State curtailment management (expenditure reduction), staying clear of tapping reserves  State revenue for FY10 - FY12 to be flat funded  Expected positive variance at year end (curtailment savings)  Potential “add” of Federal Stimulus monies (June ‘09 clarification) – currently unknown  Zero (0) mil rate impact and 0.42% expenditure increase with other districts increasing expenditures in the range of 2.5-3.0%

14 Falmouth Schools - Proposed FY10 Budget Summary FY10 vs. FY09 CHANGEProjected Change in expendituresFY09 Budget(amount)(percent)FY10 Budget Personnel Costs (Existing Staff) Salaries & Benefits$740,0002.94% Leadership Council new requests$102,0000.41% Program evaluation staff reductions($410,000)-1.63% Debt service reduction($113,000)-0.45% Energy improvements/savings (oil/electric)($137,500)-0.55% Building account reductions($120,000)-0.48% All other$43,7500.17% Projected Total Expenditures$25,131,514$105,2500.42%$25,236,764 Revenues State EPS Allocation$6,667,662$0$6,667,662 State - National Board Stipend Support$72,000$3,000$75,000 Medicaid fund balance transfer$20,000$0$20,000 Other Local Revenues$40,000($30,400)$9,600 Property Tax Revenue$18,331,852$132,650$18,464,502 Projected Total Revenues$25,131,514$105,2500.42%$25,236,764 LOCAL TAX IMPACT (assuming full new property value) Mil rate impact of proposed budget8.850.00000.00%8.85 Tax valuation$2,071,360,00015,000,0000.72%$2,086,360,000 Projected tax increase/(decrease) of school budget for every $100,000 of property$0.00

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