MSAD No. 75 FY 2018 Budget

Recommendation

FOR CONSIDERATION BY THE BOARD OF DIRECTORS APRIL 13, 2017

Mission Statement

The four communities of Maine School Administrative

District No. 75 are united in our dedication to develop

confident, life-long learners.

It is our mission to work together to ensure a community of

fluent learners, critical thinkers and creative contributors

to our society.

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The FY 2018 Budget Process Desired Outcomes

§ Abudgetthatiscenteredaroundtheneedsofstudents

§ AbudgetthatsupportsthegoalsoftheDistrictandourindividualschools

§ Abudgetthatstrikestherightbalancebetweentheneedsofstudentsandtheneedsoftaxpayersevenasthestateshi:sfiscalresponsibilitytothelocallevel

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Progression in the Budget Development and Approval Process

Step 1 Superintendent develops a FY 2018 budget proposal

Step 2

Finance Committee reviews budget & makes a recommendation to the Board

Step 3

Full Board reviews budget & makes a recommendation to the voters

Step 4

Voters approve a FY 2018 school budget

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Final FY 2018 Budget Recommendation

FY2017(Current)OperaFngBudget $37,438,114FY2018BudgetRecommendaFonfromBoardofDirectors $38,043,490

$Increase $605,376%Increase 1.62%

Note:TheabovenumbersexcludeAdultEducaFon.UndertherecommendedbudgetthelocalshareforAdultEducaFonisincreasingby2%from$136,424inFY2017to$139,152inFY2018.

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Changing Cost Factors in the Proposed Budget (Most Significant Changes From This Year to Next Year)

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Item Cost or (Savings)

Explanation

Health Insurance $ 308,609 1.37% rate increase; higher utilization

Maine Retirement $ 137,281 18% rate increase

School Construction ($350,000) Now funded through a construction bond

Salary Savings ($122,220) From staff turnover

Technology Equipment ($104,615) Based on current life cycle of equipment

Energy (Utility) Costs ($ 87,094) Implementation of energy conservation

Debt Service Payments ($ 60,910) Interest payments are declining

School-Based Health Ctr. ($ 30,000) Assumes continuation of state funding

Retirement Incentives ($ 15,625) FY 2018 is last year for incentives

Reduction in State Subsidy (EPS: Essential Programs & Services) •  TheiniFalbudgetinformaFonprovidedtodistrictbytheMaineDepartmentofEducaFonusestheGovernor’sProposedBudget

•  SeveralchangestotheEPSfundingmodelareincludedintheGovernor’sBudget

•  Anychangeinfundingwilllikelycomea:erourDistrictBudgetMeeFngandReferendum

•  Nevertheless,wemustprepareabudgetusingtheiniFalEPSallocaFonasprovidedbyMaineDOE

•  TheiniFalEPSallocaFonincludesbothgainsandlosses,butanoveralldecreaseinsubsidyof$307,108(notincludingchangesindebtservice)

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Fund Balance

•  WedisconFnuedtheuseoffundbalanceseveralyearsago,exceptforaddiFonalEPSfundingreceiveda:erthebudgetwasapproved

•  Wearenowatapointwherewehaveoursummerpayscovered,aGenerallyAcceptedAccounFngPracFce

•  Weneedtobedeliberateaboutanyuseoffundbalanceasarevenuesourceinthefuture

•  Thisbudgetincludes$300,000inrevenuesfromtheFundBalance,anFcipaFngacomparablesurplusattheendofFY2017

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Student Enrollments

DistrictTotal

SY 2013 2014 2015 2016 2017 2018 2019 2020

Actual Actual Actual Actual Actual Projected Projected Projected

K-5 1151 1115 1138 1109 1121 1106 1115 1115

MS 611 572 552 559 580 574 536 522

HS 823 798 783 734 729 728 746 766

All 2585 2485 2473 2402 2430 2408 2397 2403

#Students -100 -12 -71 28 -22 -11 6

%Difference -3.87% -0.48% -2.87% 1.17% -0.91% -0.46% 0.25%

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*Assumesten6thgraderswillmovetoCharterschoolsnextyear.WestoppedsubtracFng9thgradersinSY16-17.

The Budget at a Glance By Type of Expenditure

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Salaries & Benefits

Debt Service

Supplies, Books & Equipment

Region Ten Assessment

Utilities

Repairs, Maintenance & Insurance

All Other

Requested Additions

•  1bus(becomesannualcostfor5years)+$20,456

•  1unassigneddriver/trainer+$43,298

•  RouFngso:ware,basic+$6,500

•  NEASCvisitaFon+$29,000

•  AspiraFons(coordinaFonandcollegevisits)+$10,000

•  OneElementaryTeacher(Unassigned)toaddresslargeclasssizes+$71,223

•  WCS,6hourEdTechfor1stgradeclasssizesupport+$35,000•  TheaddiFonalsecondgradeteachermovesto3rd,orvice-versa

•  SalaryadjustmentsforadministraFveposiFons+$8,500

•  OthersmallmiscellaneousaddiFons(under$5,000each)+$15,233

TOTALAddiOonsRecommended:$239,210

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Requested Addition: Special Education Behavior Support K-5

•  EstablishanElementaryDistrict-wideBehaviorSupportClassroom

•  LocatetheProgramatWilliams-ConeSchool

•  StafftheProgramasFollows:•  Create1newSPEDBehaviorTeacher(newposiFon)+$71,118

•  ReassigntwoexisFngEd.Tech.posiFons•  ReassignexisFngSocialWorkerFmetosupporttheprogram

•  NetaddiOonalbudgetrequirement:$71,118

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Requested Reductions/Reallocations

HarpswellCommunitySchool:

•  Reduceoneteacherin2ndgrade,bringingK-2to75studentsand5teachers(classsize15:1)•  K–12,13•  1st–12,12•  2nd–12,13•  AddoneEd.Tech.(6hours)•  Netsavingsof$43,430

Mt.AraratMiddleSchool:

•  PotenFalreallocaFonoftwoposiFonsforacademicsupport(RTI)

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Capital Projects

•  $134,250isbudgetedforcapitalprojects

•  SpecificProjects:

•  BHMWasteWaterDischarge$16,000•  DWElec.Upgrades$18,000•  BCSSepFcSystem$63,600•  DWB&GEquipment $30,000•  WCSTrimTrees/Security$4,150•  BCSSecurityLighFng$2,500

•  MiddleSchoolProjectsincludeOrionLighFngupgradesandreplacementofstairtreads;thesewillbefundedfromtheMiddleSchoolConstrucFonAccount(fromacontractsenlement)

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Region Ten Technical High School

•  TheRegionTenBoardisrecommendingafundingincreaseof5.7%intheSchool’soperaFngbudget.

•  IncludesanaddiFonal$53,054toreplaceaporFonoftheroof

•  Assessmentstothethreememberdistrictswillincreaseby5.9%

• MSADNo.75’sassessmentwillincreaseby$47,192from$799,792inFY2017to$846,983inFY2018

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FY 2018 Revenue Budget (Excluding Adult Education)

Revenue Source FY 2017 FY 2018 $ Change % Change

StateContribuFon $14,622,578 $14,255,264 ($367,314) (2.5%)

LocalShare-Total $22,351,059 $23,342,126 $991,067 4.4%

OtherRevenues $146,100 $146,100 $0 0.0%

FundBalanceCarry-over $318,377 $300,000 ($18,377) (5.8%)

Total $37,438,114 $38,043,490 $605,376 1.6%

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Increase in Local Contributions by Town Based on Final Recommended Budget*

Town FY 2017 FY 2018 $ Change % Change

Bowdoin $2,745,595 $2,879,823 $134,228 4.89%

Bowdoinham $2,792,939 $2,951,130 $158,191 5.66%

Harpswell $7,729,780 $7,842,881 $113,102 1.46%

Topsham $9,219,170 $9,807,445 $588,275 6.38%

Total* $22,487,483 $23,481,278 $993,796 4.42%

*ThetotalincludesAdultEducaFon,andreflectschangesinthelocalcostsharingformulafromthisyeartonextyear.

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Increase in Local Property Taxes Based on Final Recommended Budget

Town Local Assessed Value of a Typical Home*

Annual Tax Increase

Bowdoin $178,000 $105

Bowdoinham $178,000 $120

Harpswell $425,000 $27

Topsham $182,000 $114

*BasedonApril2016numbersforlocalvaluaFonandtypicalhomevalue

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Key Meetings in the Budget Process

Date Meeting Agenda

Jan. 17 –April 3 Finance Comm. Budget review discussions

February 6 Board Meeting Superintendent’s proposed budget draft

March 21 Finance Comm. Budget meeting with Town Selectmen

March 27 March 28 March 30

Community Workshops

Public Forum – Harpswell Community Public Forum – Woodside Elementary Public Forum – Bowdoinham Community

April 13 Board Meeting Finance Committee recommendation

May 11 Public Hearing & Board Meeting

Budget hearing (beginning at 6:00); Board approves budget (6:30)

May 25 District Budget Mtg. Orion Performing Arts Center (6:30)

June 13 Individual Towns Budget Validation Referendum 19