ERCSD Finance Committee Meeting

May 4, 2005 – 5:00 PM

SAU Office

 

MEMBERS PRESENT:                   Greg Kann, Patty Lovejoy, Kris Magnusson

 

VISITING BOARD MEMBER:      Robin Scott

 

ADMINISTRATION PRESENT:    Skip Hanson, Walter Pierce, Nathan Lunney

 

Chair opened the meeting at 5:00 PM.  The following agenda items were discussed.

 

1.      State Building Aid Update:  Nathan reported to the committee on the recent passage of HB 71 by the NH legislature.  Earlier this year, the DOE alerted schools that there were insufficient funds in the current state biennial appropriation to cover the total FY 2004-05 entitlements for Building Aid.  As a result, all Building Aid was to be “discounted” at 93.0636% this year.  The shortfall for the Cooperative was over $251,000.  HB 71 provides supplemental appropriation to cover this shortfall statewide, so the Cooperative will be receiving the $251,332.10 prior to the end of this fiscal year. 

 

2.      FY 2005-05 Fund Balance Projection

a.       Revised Revenue Estimates:  Nathan reviewed the revised estimates of revenues for the current fiscal year.  He explained the variances including: approx. $190k from SST tuitions which will be transferred to the new voter approved capital reserve fund, the nearly $198k from the NH Bond Bank refunding of our CMS bonds, the excess Building Aid of $251k noted above, about $146k of Catastrophic Aid that exceeded State projections, and about $100k of Medicaid beyond the level budgeted.  The total revenue projection suggests that there should be excess revenues of nearly $1 million.  This total will fund the $490k of warrant articles approved at the March District meeting and provide for nearly $500k of fund balance to offset tax impact this fall.

b.      Updated Appropriations Projections:  Nathan explained that the May 1 iteration of the fiscal year appropriations projection was in draft form only.  The Business Office has directed the cessation of regular purchasing at the end of this week to provide the opportunity for PO’s to be “cleaned up” as they are annually at this time.  He reported that his projection will be much tighter at the June committee meeting.  Nathan expects that the appropriations balance should be between $150k and $200k.

 

3.      ERCSD Trust Funds Summary:  The committee reviewed the March 31^st statement of trust account balances.  Kris commented about the trustee presentation of the last meeting.  She wondered about the ERCSD offering some financial support to East Kingston in compensation for their maintenance of the trust funds.  Discussion followed.  Nathan will investigate how other cooperative districts manage the relationship surrounding trustees and return to the committee with information about possible stipends.

 

(The committee moved next to #5 on the agenda.)

 

4.      FY 2005-06 State Aid for Education:  Nathan shared with the committee a review of the legislation pending on state aid for education.  The document reviewed illustrated the possible impact on SAU 16 communities of the several key plans under consideration.  Current law would increase total aid by $1.4m.  Governor Lynch’s plan would have reduced aid by almost $2m.  The final amended version of HB616 that was passed in the House would reduce SAU 16 total aid by more than $2.5m.  The Senate is working on the legislation now.  There was discussion about the possible constitutional questions surrounding the House plan.  Walt reported that Superintendent Greenberg of Londonderry is coordinating a meeting on Tues, May 10^th at 7:00pm with many interested parties to review the legislation and discuss options for action.  Kris asked about working with our local legislators.  Staff reviewed efforts to date with local representatives and there was further discussion.

 

5.      EHS Building Project Update:  Walter updated the committee on the building project.  He reviewed with the committee his recent comments to the Facilities Committee about the project contingency and the budget challenges of rising steel costs, etc.  He reported that overall the project continues to be on budget and on schedule.

 

6.      Next Meeting Date:  Wednesday, June 1, 2005 at 5:00pm at the SAU office.

 

The meeting was adjourned in deference to another committee meeting at 5:55 PM.

 

Respectfully submitted,

Nathan Lunney