2.  Educate the Sutton community on the annual budget process  Provide a five year overview  Provide the Sutton community with an opportunity to ask questions regarding the budget  Seek community input on next steps 2

3. Total Increase between 2011-2015: $913,454 (6.2%) School Committee Actual FY2011FY2012FY2013FY2014FY2015 14,696,40114,721,80214,618,59715,035,97315,609,855 3

4. Total Actual Increase between 2011-2015: $1,096,221 (37%) *Anticipated Increase for 2016: $223,645 Actuals FY2011 Actuals FY2012 Actuals FY2013 Actuals FY2014 Actuals FY2015 Anticipated FY2016 Instruction: Special Education 2,437,5882,919,3103,097,0783,244,4583,364,6253,449,889 Out of District Tuition 560,413528,110645,436647,065729,597867,978 TOTAL2,998,0013,447,4203,742,5143,891,5234,094,2224,317,867* 4

5. 5

6.  On a $15,000,000 budget, approximately $12,000,000 represents personnel  One percent of increase equals $120,000  On average, total salaries have increased annually approximately $250,000 to $400,000  Exception: Union concession delayed pay increase for 91 days in 2013  Restructure of health care benefits in 2014 and 2016 allowed increased funding from the town in excess of $400,000 6

7. ActualFY2011FY2012FY2013FY2014FY2015 Anticipated FY2016 Chapter 70 State Aid 5,075,2295,102,4755,163,3555,201,6805,239,2305,276,480 Town Contribution 7,801,5547,801,5447,834,0148,359,0148,660,0149,100,393 Other Funding Sources 1,819,6181,817,7831,621,2281,475,2791,710,6111,791,221 TOTAL14,696,40114,721,80214,618,59715,035,97315,609,85516,168,094 Actual Increase 25,401(103,205)417,376573,882558,239 0.2%-(0.7)%2.9%3.8%3.6% 7

8. Chapter 70 is the Commonwealth’s School Funding Statute A district’s Chapter 70 aid is determined in three basic steps: 1. It defines and calculates a foundation budget, an adequate funding level for each district, given the specific grades, programs, and demographic characteristics of its students. 2. It then determines an equitable local contribution, how much of that “foundation budget” should be paid for by each city and town’s property tax, based upon the relative wealth of the community. 3. The remainder is funded by Chapter 70 (c70) state aid. 8

9.  A report by MassBudget gathered data from the state’s 328 operating districts and analyzed key trends found across each.report by MassBudget  The study found that most districts hire far fewer regular education teachers than the foundation budget sets as the adequate number. The education funding formula does not reflect increased health insurance and special education costs, forcing most districts to compensate with funds that would have supported hiring regular education teachers.  The foundation budget estimate of statewide district spending on special education and health insurance falls short by over $2 billion. 9

10. Total Increase in Chapter 70 Funding from 2011–2015: $164,000(3%) Less than 1% per year *Anticipated Increase in Chapter 70 Funding for 2016: $37,250 NOTE: In 2008, Sutton received $5,245,542 in Chapter 70 Funding. Actual Funded FY2011FY2012FY2013FY2014FY2015 Anticipated FY2016 Chapter 705,075,2295,102,4755,163,3555,201,6805,239,2305,276,480* 10

11. Total Increase in Town Contribution from 2011–2015: $858,460 (11%) Virtually all of the increases have occurred over the last two years, in part, due to health care concessions by all town employees. *Anticipated Town Contribution for 2016: $440,379 Actual Funded FY2011FY2012FY2013FY2014FY2015 Anticipated FY2016 Town Contribution 7,801,5547,801,5447,834,0148,359,0148,660,0149,100,393* 11

12. FY14 & FY16 – restructure health insurance and will continue Town Contribution 12

13. 13 Actuals FY2011 Actuals FY2012 Actuals FY2013 Actuals FY2014 Actuals FY2015 Budget FY2016 Lunch33,43633,92634,58822,363 Tuition150,000150,45090,00060,90560,0007,000 Athletics5,20611,205 Building Use10,000275 School Choice316,848556,879547,356289,687536,415438,272 Preschool40,000 50,000 70,000 Sports Fees85,000 105,00099,386111,200141,300 After Care92,607103,21589,081100,000 140,000 Circuit Breaker161,122178,288199,000339,172255,573360,000

14. 14 Actuals FY2011 Actuals FY2012 Actuals FY2013 Actuals FY2014 Actuals FY2015 Budget FY2016 Parking Fees 9,000 Summer Camp 10,000 Gifts & Donations 17,22510,740 Bus Fees60,655 61,00090,000115,000 TOTAL REVOLVING 949,6681,208,4131,175,6801,022,7881,225,6191,312,517

15. 15 Actuals FY2011 Actuals FY2012 Actuals FY2013 Actuals FY2014 Actuals FY2015 Budget FY2016 Kindergarten69,90055,60046,05045,85042,03741,680 Title I40,00038,33635,13253,76170,91069,000 Early Childhood 16,12917,71217,67417,28417,65217,000 Spec. Ed. Allocation 332,266349,822346,692335,596332,991328,000 Teacher Quality 21,40223,024 ARRA196,067 ARRA Early Child 3,820 SFSF27,246 Jobs Bill184,522147,900 TOTAL GRANTS869,950609,370445,548452,491484,992478,704

16. 16 Actuals FY2011 Actuals FY2012 Actuals FY2013 Actuals FY2014 Actuals FY2015 Budget FY2016 TOTAL REVOLVING ACCOUNTS 949,6681,208,4131,175,6801,022,7881,225,6191,312,517 TOTAL GRANTS 869,950609,370445,548452,491484,992478,704 TOTAL REVOLVING ACCOUNTS & GRANTS 1,819,6181,817,7831,621,2281,475,2791,710,6111,791,221

17.  Restructured the middle school  Restructured high school  Concessions in negotiations with the two unions, STA and SESA  Reduced staffing  Increased sports fees  A variety of other cost cutting measures  Increased the use of one-time revolving funds, which have now been nearly depleted 17

18. Professional Staff Reductions FY2011-FY20129.0 FTE FY20135.0 FTE FY20146.8 FTE FY20151.0 FTE FY20162.2 FTE 24.0 FTE Using an average salary of $50,000 x 24 positions equals a reduction of 1.2 million dollars. 18

19. 19 1,663

20. Grade LevelTotal StudentsAverage Class Size Grade K8321 Grade 110226 Grade 29323 Grade 311523 Grade 410922 Grade 513026 Grade 612124 Grade 712324 Grade 811824 Grade 911419 Grade 1011419 Grade 1110119 Grade 1211519 TOTAL STUDENTS:1,438 20 Projection of Kindergarten students in FY2017 is 80.

21. 21 FY2017FY2018FY2019 Total Salary Increase364,000408,000377,000 Total Expense Increase66,000116,000136,000 430,000524,000513,000 Projection Assumptions: Estimated contract negotiations Actual contract increases Expenses increase 1% Estimated Special Education tuition

22. 22 New Foreign Language Teacher50,000 Visual Media Teacher (TV Studio)50,000 General Supplies to 2015 levels50,000 Textbooks (Annual $100K Budget)55,000 Additional Academic Support (SCEL & ELEM)100,000 Eliminate Fees (Sports, Buses)220,000 TOTAL525,000 Items to Consider

23. FY2017FY2018FY2019 Projected Budget Increase 430,000524,000513,000 Projected Loss of One Time Revenue 300,000100,0005,000 Estimated Funding Increase Required 730,000624,000518,000 23

24.  Cannot count on substantial increases from state or federal government  The only direct way to eliminate the budget gap is through local funding, or  A proposition two and half override  For every $100,000 of override spending, the average single family property* real estate tax would increase approximately $26 $500,000 override = increase approx. $130 $1,000,000 override = increase approx. $260 24 *Using $325,186 as the average single family property value.

25.  Without a solution, services will continue to be cut. 25

26.  Continue to fine tune budget projections throughout year  Meeting with Fincom  Continue to work with Town  Acquire clear revenue projections from Town and State  Hold additional informational sessions 26

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