1. Monomoy Regional School District Recommended FY15 Budget PUBLIC HEARING SCOTT CARPENTER, SUPERINTENDENT KATHLEEN ISERNIO, BUSINESS MANAGER FEBRUARY 26, 2014

2. The “Promise of Monomoy” Regionalization is delivering: Improved curricula, Expanded opportunities, Enhanced educational experiences of our children, and Lower school expenditures, than if the towns continued to operate schools independently, providing savings to our towns and citizens.

3. Curricular Improvements, Expanded Opportunities, and Educational Enhancements Teaming of core academic teachers grades 5-8 Expanding World Language through Mandarin beginning in middle school Adding an Enrichment/Gifted & Talented program in the middle school to ready for additional academic challenge at the high school level Providing a Middle School Math Specialist position to bolster math pedagogy and student achievement Imbedding computer technology proficiencies, beginning in elementary school, to enable students to express understanding and creativity through words, data analysis, presentations, images, and video Expanding the Advance Placement program to include up to 20 courses, including all AP courses currently offered in Harwich High and Chatham High, along with adding select AP courses in Physics, Economics, World Languages and the arts. Developing a curricula at the high school level that provides “high tech” electives, including computer programming, game design, web technologies and media/film courses Adding boys and girls lacrosse, beginning in middle school, and 8 th /9 th grade teams in many sports at the high school level

4. Reductions from FY14 Staffing Positions cut from combined middle school and high school staffing: 2 Principals 2.5 Administrative Assistants 1 Library Assistant 1 Custodian 3 Cafeteria staff 1 School Nurse 9.8 Teachers Total staff reduction -20.3 FTE

5. Additions Beyond FY14 Staffing Mandarin teacher +1.0 FTE  This position will be split between the middle and high school. This additional curricular opportunity is being made available for Monomoy students by reducing two teachers in other World Languages District-Level DESE Reporting Support +0.5 FTE  Providing clerical staffing to keep the district in compliance with required state educational reporting that is required throughout the year Intensive Special Needs teacher +1.0 FTE  Allows the district to provide special education supports for children with significant special needs, rather than exposing the district to more costly out- placements ELL Teachers +2.0 FTE  Required by Federal laws to provide equity and appropriate education for children who are English Language Learners These 4.5 FTEs are included in the Recommended FY15 Budget.

6. Staff Reduction The are 15.8 FTE fewer Monomoy staff in this recommended FY15 budget. Middle School Reductions -12.05 FTE High School Reductions -8.25 FTE Additions +4.5 FTE -15.8 FTE This is in addition to 10 FTE in staff reductions during the present and previous fiscal years as the central office consolidated, athletic programs merged, and positions were eliminated through an early retirement incentive. 25.8 FTE total staff reduction through regionalization, allowing the district to reduce costs, while concurrently improving curricula, educational program, and opportunities for children.

7. Foundation Enrollment Monomoy’s assessment to each town is based on a three-year rolling average enrollment, published by DESE, of all children towns are financially responsible for educating – this includes children attending charter school or who choice out of the district. Changes in enrollment also impact transportation reimbursement from the state and how each town is assessed for school debt. The three-year rolling average is 27% Chatham and 73% Harwich. Enrollment at the lower grade levels suggests that Chatham’s contribution to the three-year rolling average will slightly drop in the upcoming years.

8. 24% of Monomoy’s resident students come from Chatham. 76% from Harwich.

9. High quality school programs benefit students and saves tax dollars by keeping children in their home district. The 254 children living in Harwich and Chatham opt for Charter Schools or choice out to other schools. This costs Monomoy $1,870,328 in tuition.

10. FY15 Budget Summary Third budget for the new regional school district, but the first fully regional budget Includes 15.8 FTE staff reductions Includes program enhancements and increased student opportunities Monomoy Regional Total Budget, excluding debt, is $33,874,562 (0.7% increase over FY14). This is offset by School Choice and Circuit Breaker funds totaling $3,233,564. The total General Fund Budget, excluding debt, is $30,640,998, a 0.2% decrease from FY14 Chatham’s Assessment is $7,937,528, including debt A 4.2% increase over FY14 Excluding debt, this is a 4.2% increase over the prior year before applying the FY14 Minimum Contribution adjustment Harwich’s Assessment is $20,495,488, including debt A.78% increase over FY14 Excluding debt, this is a 1.6% decrease over the prior year, before applying the FY14 Minimum Contribution adjustment

11. FY15 Budget Development Process July-December – develop budget with school administrators December 6 – FY15 Draft budget provided to both towns Initial Budget Sharing and Continual Development: MRSC Budget Subcommittee (January 3 & 6) Regular Finance Team meetings with Monomoy Superintendent and Monomoy Finance Director and both town’s Town Managers and Finance Directors (October 9, December 5, January 29) Draft Budget Presentations: Harwich BOS – January 6 Chatham BOS – January 7 Monomoy Regional School Committee – January 8 Continued Budget Refinement MRSC Budget Subcommittee (February 5 & 24) Refined Draft Budget Presentations Chatham FinCom – February 6 Monomoy Regional School Committee – February 12 Meetings with Harwich Town Manager and Finance Director – February 13 Meeting with Chatham Finance Director (Feb. 14) and Town Manager (Feb. 21) Budget Forum, followed by Monomoy Regional School Committee meeting – February 26 Final Budget Approval by Monomoy Regional School Committee – March 12

12. FY15 Budget Challenges District is finally merging into its four-school configuration Chatham Elementary, Harwich Elementary, Monomoy Regional Middle School, and Monomoy Regional High School Transitional Costs Creating a cohesive Central Office Move expenses Negotiations Monomoy Regional Education Association (teachers, clerical, and teaching assistants) Service Employees International Union Budget Design Aligning elementary programs Estimating costs to run new high school

13. FY15 Financial Challenges Funding technology updates at the elementary schools Commitment to addressing outstanding post- employment benefits (OPEB) Over reliance on School Choice funds to “balance” FY15 Developing a sound Excess and Deficiency account to ensure long-term district stability

14. FY15 Budget Assumptions/Strategies Includes all staffing reductions, additions, and program enhancements Level funded State Aid, Circuit Breaker (50%), and Regional Transportation reimbursement (46%) Recommended budget does not use the Governor’s numbers, which again change each town’s minimum required contributions Health Insurance increased by only 1.8% Transportation bid increased by 13% School Choice and Charter tuition “out” use draft FY15 Cherry Sheet Utilities for new Monomoy Regional High School estimated from similar “model” schools’ utilities use Reclassifications in current year’s budget to offset next year’s expenditures E+D certified at $514,648 Recommended budget includes $70,000 to fund the first of a three year strategy to upgrade educational technology in elementary schools Recommended budget includes $197,000 (1% of payroll) to begin addressing OPED liabilities

15. Operating Budget

16. Available Funds Anticipated RevenuesFY14FY15 State Aid$2,506,360 Regional Transportation$298,031$302,000 Charter School$134,190 Medicaid$90,000$86,000 Interest$4,000 Miscellaneous$7,500 TOTAL$3,040,081$3,040,050 Anticipated OffsetsFY14FY15 School Choice$1,625,928$2,557,722 Circuit Breaker$338,182$675,842 TOTAL$1,964,110$3,233,564 To support balanced town budgets, use of School Choice monies significantly increased in FY15.

17. Account Balances School ChoiceREVENUEEXPENDITUREENDING BALANCE Initial Balance$1,465,261 FY 13$1,555,378$1,786,766$1,233,873 FY 14 Projected$1,579,071$1,334,293$1,478,651 FY 15 Projected$1,501,717$2,557,722$422,646 Excess & DeficiencyREVENUEEXPENDITUREENDING BALANCE Certified Initial Balance Feb. 12, 2012 $514,648 Circuit BreakerREVENUEEXPENDITUREENDING BALANCE Initial Balance$192,813 FY 13$454,141$420,408$226,546 FY 14 Projected$525,197$601,097$150,645 FY 15 Projected$525,197$675,842$0 Maintaining sound account balances ensures long-term fiscal stability.

18. FY15 Operating Budget by Cost Center Elementary Schools 18.1% Middle School 15.4% Special Education 14.6% Excludes Transportation and Debt

19. FY 15 Operating Budget Summary In FY15, the middle school shifts from 4 to 3 grade levels and the high school from 4 to 5 grade levels. Cost CenterFY 14 BudgetFY15 BudgetDifference % Change Elementary$5,596,150$5,728,414$132,2642.4% Middle$4,762,241$3,855,614-$906,627-19.0% High$5,801,939$5,687,477-$114,462-2.0% District$9,306,538$9,958,478$651,9407.0% Special Education$4,539,972$4,597,556$57,5841.3% Operating Budget$30,006,840$29,827,539-$179,301-0.6% Excludes Transportation and Debt

20. General Fund Expenditure Category FY 14 Budget FY 15 BudgetDifference % Change 1000 District Leadership & Administration Salaries & Wages$764,623$814,929$50,3066.6% 1000 District Leadership & Administration Expenses$414,874$404,874-$10,000-2.4% 2000Instruction Salaries & Wages$15,236,219$14,756,550-$479,669-3.1% 2000Instruction Expenses$1,151,986$1,152,984$9980.1% 3000Other School Services Salaries & Wages$713,247$680,890-$32,357-4.5% 3000Other School Services Expenses$1,521,538$1,641,348$119,8107.9% 4000 Operations & Maintenance Salaries & Wages$1,012,202$1,018,465$6,2630.6% 4000Operations & Maintenance Expenses$1,984,276$1,838,612-$145,664-7.3% 5000Fixed Charges$5,194,541$5,529,117$334,5766.4% 7000Capital$101,312$71,312-$30,000-29.6% 9000Programs With Other School Districts$2,605,631$2,731,917$126,2864.8% Total Salaries and Wages $17,726,291$17,270,834-$455,457-2.6% Total Expenses $12,974,158$13,370,164$396,0063.1% Total Operating Budget $30,700,449$30,640,998-$59,451-0.2% Excludes Debt

21. FY15 Operating Budget by Category Expenses 13% Programs with other school districts 7% Capital 0.2% Salaries & Wages 47% Fixed Charges 18% SPED 15%

22. FY 15 Operating Budget Summary CategoryFY 14 BudgetFY15 BudgetDifference % Change Operating Budget$30,006,840$29,827,539-$179,301-0.6% Regular Transportation$693,608$813,459$119,85117.3% Total$30,700,449$30,640,998-$59,451-.2% Excludes Debt

23. Debt

24. Borrowing costs to fund buildings projects, previously approved by the voters, is not included in the calculation of a municipal department’s annual budget increase. Interest on Building Project FY15 $884,864 -$301,064 BAN Premiums to offset Debt $583,800 Debt to be Assessed to Towns Existing Debt of $195,676 in FY15, in FY14 it was $293,058 Total Projected Cost of Debt in FY15 is $779,476, an increase of $486,418. The Debt will increase in FY16 and then decrease over the next 19 years. Debt

25. FY 15 Budget Summary CategoryFY 14 BudgetFY15 BudgetDifference % Change Operating Budget$30,006,840$29,827,539-$179,301-0.6% Regular Transportation$693,608$813,459$119,85117.3% Debt$293,059$779,476$486,417165.9 Total$30,993,507$31,420,474$426,9671.4% Includes debt

26. General Fund Expenditure Category FY 14 Budget FY 15 BudgetDifference % Change 1000 District Leadership & Administration Salaries & Wages$764,623$814,929$50,3066.6% 1000 District Leadership & Administration Expenses$414,874$404,874-$10,000-2.4% 2000Instruction Salaries & Wages$15,236,219$14,756,550-$479,669-3.1% 2000Instruction Expenses$1,151,986$1,152,984$9980.1% 3000Other School Services Salaries & Wages$713,247$680,890-$32,357-4.5% 3000Other School Services Expenses$1,521,538$1,641,348$119,8107.9% 4000 Operations & Maintenance Salaries & Wages$1,012,202$1,018,465$6,2630.6% 4000Operations & Maintenance Expenses$1,984,276$1,838,612-$145,664-7.3% 5000Fixed Charges$5,194,541$5,529,117$334,5766.4% 7000Capital$101,312$71,312-$30,000-29.6% 8000Debt Retirement & Service$293,058$779,476$486,418166.0% 9000Programs With Other School Districts$2,605,631$2,731,917$126,2864.8% Total Salaries and Wages $17,726,291$17,270,834-$455,457-2.6% Total Expenses $13,267,216$14,149,640$882,4246.7% Total Budget $30,993,507$31,420,474$426,9671.4% Includes Debt

27. Assessment

28. Harwich Assessments Category FY14 Budget FY15 BudgetDifference% Change Operating (73%) $19,928,026$19,536,164-$391,862-2% Transportation (76%) $319,825$390,307$70,48222% Debt (73%) $89,812$569,017$479,205533% TOTAL $20,337,663$20,495,488$157,8250.78% FY14 Minimum Contribution Adjustment($336,245) Final FY15 Assessment$20,159,243 ($178,420)-0.88%

29. Chatham Assessments Category FY14 Budget FY15 BudgetDifference% Change Operating (27%)$7,288,141$7,603,814$315,6734.33% Transportation (24%)$124,376$123,255-$1,121-0.90% Debt (27%)$203,246$210,459$7,2133.55% TOTAL$7,615,763$7,937,528$321,7654.22% FY14 Minimum Contribution Adjustment$336,245 Final FY15 Assessment $8,273,773$658,0108.64%

30. Total Taxpayer Funding for Schools, excluding Debt, Before and After Full Regionalization Before Regionalization FY11 Harwich School BudgetFY11 Chatham School Budget $20,386,086 $10,101,138 After Full Regionalization FY15 Harwich Assessment FY15 Chatham Assessment $19,926,471 $7,727,069 Savings $459,615 less than FY11 $2,374,069 less than FY11 Combined the towns are saving $2.8M over FY11. Factoring in inflation since FY11 would make the realized savings greater.

31. Delivering the “Promise of Monomoy” Improved curricula, Expanded opportunities, Enhanced educational experiences of our children, and Over $2.8M in savings to our towns and citizens.