Exeter Region Cooperative School board Budget Work Session

Exeter Region Cooperative School Board Budget Work Session Minutes

Saturday, January 5, 2008 – 8:00 AM

Roy Morrisette Alumni Room - Exeter High School

Present: Sally Oxnard, Kris Magnusson, Lucy Cushman, Kim Casey,
Patty Lovejoy, Townley Chisholm, Tomasen Carey, Barbara Collins

Absent: Ray Trueman

Administration: Arthur Hanson, Victor Sokul, Richard Wendell, Nathan Lunney, Walter Pierce,
Margaret Callahan, Tom O’Malley and Bill Perkins

Budget Advisory Committee: Bobby Aldrich, Deborah Johnson, David Pendell, and Mark Portu

The meeting is being taped by Jim Fellows for the board as well as by John Hazekamp of Minuteman Documentation.

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE/INTRODUCTIONS: Chair Oxnard called the meeting to order at 8:14 AM followed by the Pledge of Allegiance. Reminded board members of a breakfast coffee on 1/9/08 at 7:00 AM with GBeCS staff and Ms. Magnusson noted she could not attend. SAU 16 School Activities Passes were handed out to all board members. Chair Oxnard thanked the Budget Advisory Committee (BAC) for working on this budget and noted that their positions going forward will be by elections, not appointed. Mr. Lunney introduced the Budget Advisory Committee members who were present.

2. OVERVIEW OF THE DAY

2.1 Timeline & Guidelines for the Day – Chair Oxnard reviewed the day’s schedule.

2.2 Overview of the FY 2009 Budget – Skip Hanson/Nathan Lunney: Superintendent thanked the BAC for their many hours of work toward budget, especially the work by Chair Aldrich. He also thanked Mr. Lunney and the school principals for all their work on the budget. Mr. Lunney spoke to the Proposed Budget FY 2008-09 and the Draft Warrant Articles (see Budget Work Session attachment for all budget documents referenced in these minutes (pdf)) and SAU 16 Enrollments as of October 1, 2007 noting each town’s 06 and projected 08 enrollments along with the NESDEC Enrollment Projections by Grade. Proposed budget includes a 2.97% increase in the default with requests that bring budget to 3.96% which is the lowest percent increase he has seen since working here.

2.3 Budget Advisory Committee’s – Budget Committee Report and Recommendations – Bobby Aldrich & Budget Committee: Mr. Aldrich gave a brief overview of the work they have done over the last several months; the committee is interested in moving forward and assisting the board with their recommendations; met with school principals and toured all the schools; and added that working with a budget of this size was tough to do in four months time. He thanked the SAU Central Office Administrators and school administrators for their time, along with board representative Ms. Lovejoy and other board members who attended meetings. Mr. Lunney and Mrs. Tuck at the SAU Office were very responsive to all their detailed questions, comparative data and further information they requested. The BAC operated and continues to operate as if they have statutory authority although they were only advisory for this year. He would like to include a report from the committee in the annual report with the board’s permission and the committee plans to continue on meeting between now and the elections. Many committee members have said they will file for the positions to keep continuity, but they do need representation from Kensington and possibly a couple of other towns going forward. Mr. Aldrich turned the meeting back over to Mr. Lunney and Superintendent Hanson.

3. SUPERINTENDENT’S RECOMMENDED FY 2009 BUDGET - Nathan Lunney: Began with an explanation of the Proposed Budget Summary 2008-09 explaining the sheet shows the Current 07-08 Budget; Default Changes; Default Budget; Requests and Total Budget for 08-09. Next reviewed the Teacher Salary Analysis sheet and the ERCSD Negotiated Teacher Salary Scale for 2009-09 @ CPI 3.4%. Noting these figures add in the CPI with the additional 2% and the maximum cap per the contract. The board discussed educationally what is involved in teachers moving up the pay scale. Mr. Lunney noted many teachers are veterans and they are 20 years+ so you are not seeing grid steps with these teachers. Chair Oxnard sees this as a reasonable salary scale and feels teachers work very hard and deserve to be well paid. Discussion followed on potential budget problems in the teacher grid with CPI at this rate and the financial support the board gives to teachers for their professional development. Mr. Lunney further discussed the Teacher Summary analysis going through each sheet (FTE – Full Time Equivalents). Per year, each teacher, by contract, can acquire up to 8 credits at about $800/credit (UNH estimated cost). GBeCS students are not included in the EHS enrollment projections in handouts received today. Discussed SST and its student make-up and how all the schools that attend SST share in the budget as well as in any staffing additions. Special Education administrators and staff were then discussed along with SST reimbursement from sending schools. SST tuition for next year is going down by $12.00/student for 08-09. ERCSD salaries are about 30% of total proposed budget for 08-09. Deborah Johnson (BAC) arrived. Chair Aldrich spoke to the fact that the BAC spent quite a lot of time on the teacher increases and shared the many variables and costs that can go forward in a 4.9% increase and how it can vary tremendously depending on education. Discussion followed on having this conversation at the board level since the opportunity exists for a teacher, given the current teacher contract, to experience a 30% salary growth in a three year period. It was further noted that this information needs to be kept in perspective to others jobs in the marketplace and that this growth potential is tied into the teacher’s educational background. Mr. Lunney then reviewed the Summary Support/Administrative Salaries. Support staff has a fixed scale that was agreed on based upon cents per hour versus percentages or using the CPI rate. He further shared information on sabbaticals, substitutes and tutors and reviewed Operations budget salaries. Ten minute break.

After break, Mr. Lunney offered (Mr. Chisholm arrived) some wrap-up comments on the first part of his presentation (5.6% increase).

Discussion of telephone lease and core phone services, noting level funded. We were over budget this year in IT, data sharing, etc., because we are moving to voice over IP. Next item reviewed was Property and Liability and what is included in this account where we are level funded. Debt Service information has changed by approximately $6,000 plus. Building aid figure can be found on MS 26 or 27, which are posted, show this. Debt service went up 14.10% and transportation is going up 3.95% and the current five year contract with First Student was discussed which calls for a 3.5% growth each year. Ms. Casey arrived. Board would like to reduce the 08-09 proposed transportation by $10,000 since the extra Tech Ed bus run should not be occurring next year (which is costing $10,000 for 07-08). Board chose not to cut the $10,000 until the Family Consumer Science Committee comes back to board with their recommendations. Scheduling for EHS should be complete close to April vacation per Mr. Sokul.

Food Services Appropriations – explanation was given by Mr. Lunney of gross appropriations for food services. He noted that the Non Salary Accounts are a huge catch all for things such as supplies, Adult Ed, audit, etc. An explanation of how building budgets are developed was given along with a discussion on laptops for each teacher. The $10,000 shuttling savings from transportation could potentially be used for laptop purchases. No action taken.

SPED Budget overview was reviewed noting costs for out-of-district placements. Only budget in SPED is for exceptional services above and beyond needs of regular educational services. Discussion of Catastrophic Aid followed and Mr. Lunney noted that we try to offer as many services locally, so we can minimize out-of-district placements. BAC recommended that we reduce the SPED budget by $250,000. Board member suggested more money be placed in the SPED Trust Fund.

Benefits (health, dental, life, etc.) were discussed, noting that we are not certain what increase in health costs could be, but they could go up as much as 15.8 %. Workers’ compensation was reviewed noting this cost has more to do with Primex than with district claims.

Mr. Lunney then discussed the SAU Budget and the ERCSD’s share of the SAU budget, explaining that the costs are mostly from salary and benefits.

Lunch break until 12:40 PM

Mr. Lunney reviewed the following information under the Maintenance Budget: default budget involves utilities, trash and snow removal; the requested column involve projects; Mr. Wendell spoke to an issue with a Tuck wing entrance door at the Tuck Learning Campus that is having ice buildup problems; he has offered an alternative entrance for the renters in the Tuck Wing through his Maintenance Office door; price to mitigate roof issue is estimated around $10,000. After discussion, the board decided to repair the Tuck Roof since there is enough money in this year’s budget, but did agree with Mr. Wendell that to wait until warmer weather would be preferable. Ms. Cushman spoke in favor of repairing the roof. Mr. Wendell discussed his proposed FY 2009 maintenance budget and the projects line, i.e., roof for Talbot Gym, electrical work for CMS, locks at CMS for phase 2. Total projects cost is approximately $80,000 and will ask for out of surplus at year end. Ms. Magnusson stated that the maintenance fund could be used. Mr. Wendell is to upgrade his five (5) year plan. Chair Oxnard suggested lowering the thermostats.

Mr. Lunney then reviewed the default budget and the requests above the default budget. Mr. O’Malley spoke to the need for an ESOL teacher at CMS and Mr. Lunney explained the funding for that position. Ms. Casey expressed that she felt having the discussion about the ESOL position at a Curriculum meeting would be more appropriate than at the budget work session. Mr. Sokul shared his reasons for an additional science teacher. Mr. Aldridge explained why the BAC recommended Mr. Sokul’s science request as Mr. Sokul was not at the meeting to discuss his request. This summer when Mr. Sokul knows the numbers of students for these classes, maybe the recommendation would be .8 versus 1.0, but that will be a tough position (.8) to hire for a science teacher. Mr. Sokul then discussed the foreign language and math needs explaining math has movement up and down the scale between 100, 200 and 300 levels and EHS has also increased the graduation requirement of three math classes; current math classes have some enrollments of 24, 25 and 26. Mr. Lunney then went to Revenue Projection sheet sharing that this is a part of budget we do not vote on but these figures can impact the overall budget.

4. TAX IMPACT OF FY 2009 BUDGET – Nathan Lunney: The Comparison of ERCSD Apportionment from Establishment in 1997 was explained by Mr. Lunney and then he shared What Is Projected Impact of Apportionment Change. He then discussed the Projected Tax Impact of Proposed Budget. With no further discussion, motion by Ms. Lovejoy, seconded by Ms. RigordaEva to accept this Appropriations Budget of $48,150,360. Discussion followed. Mr. Aldridge spoke of the BAC recommendations ($250,000 from SPED has been removed as well as the recommendation BAC made to reduce Mr. Wendell’s budget. With no further discussion, Chair Oxnard called for a vote: Yes – 5; No – 0 (Mr. Chisholm had left meeting, Chair did not vote). Mr. Aldridge would recommend going forward that as part of the budget process, the board seeks: comparisons to explain justifications, etc. on budget requests (class size; different instruction levels;, numbers of administrators to teachers; teachers to students, etc); defining fully funded cost per student at each facility (currently done at SST); looking at the real cost of programs at the Tuck Learning Campus that are supported by the ERCSD (as well as renters at TLC and if they are paying a fair share of costs for their spaces); plan for a significant amount of time at every board meeting to discuss budget surplus and look to even that out so not so much money is held up and in June gets spend, i.e., decrease surplus budget spending. The BAC also recommends forming a capital improvement committee with a significant capital improvement plan to compare projects year over year and not have them impact Mr. Wendell’s maintenance budget. Also, conversation about contract negotiations regarding percentage of employee contributions to health insurance and how that compares to other comparable districts should occur. Additionally, with the teacher contract using the November CPI figure, it is really too late in the budget season to discuss so moving the CPI month to early than November needs to be considered. Lastly, he discussed the thought that when the administrative and support salaries are given a percentage increase, the board has traditionally supported giving them the same percent as the teacher contract dictates. The BAC feels the administrative and support staffs are receiving the benefit of the teacher contract without being a part of the bargaining unit. Their suggestion would be that the ERCSD Board form a policy or have the discussion that creates how those increases are given out since the teachers benefited from the maximum allowable increase, and in turn, so do the support staff. Superintendent shared that this process is different for the SAU Office staff. The BAC feels very strongly that this is an area the board needs to really review. Mr. Aldridge’s last comment dealt with special education and increasing the cap or trust fund and relying more on that for the unexpected expenditures. This would allow you to decrease the budget and he sees this as a long term goal that needs to be evaluated. The full BAC report with their recommendations will be forthcoming.

Mr. Aldridge thanked the board for their support and the members who participated on the committee. The towns of Kensington, and possibly Stratham and Exeter, may need members to run for the following term. He would like to personally thank Nathan for all the work he did as he went above and beyond his regular duties. When asked about the attendance at the meetings, he noted that the Kensington representative, due to a family issue, was only able to attend one meeting, but most of the other meetings had everyone in attendance. Chair Oxnard spoke to board participation at the BAC meetings, noting that Mr. Aldridge or next BAC chair needs to come to the board meetings on a more regular basis (Ms. Carey left the meeting). Mr. Aldridge agreed that the BAC would like to do a better job of coming to board meetings versus board coming to BAC meetings.

5. WARRANT ARTICLE(S) – Walter Pierce / Nathan Lunney: Mr. Lunney then reviewed the draft Warrant Articles noting that what the board just voted on is reflected in the warrant article language. He has included language to encourage the board to have the BAC recommendations on the warrant articles. Ms. Lovejoy added that she felt the board should include the BAC recommendations given all the time they have put into this process. Motion by Ms. Cushman, seconded by Chair Oxnard, that the board allocate $100,000 of surplus and increase the cap to the SPED Trust Fund (cap is currently $300,000 and the budget is a little over $200,000). Discussion followed on having Patricia Dowey attend one of ERCSD committee meetings to report on SPED program, etc. Mr. Aldridge added that when the BAC discussed cutting the $250,000 from the SPED part of the budget, they also had similar discussions and the majority of the committee would support of increasing the SPED Trust Fund cap versus having it in the budget in light of the tax rate increases. The BAC was charged with the 08-09 budget and this would come out of the 07-08 budget. Mr. Lunney will consult with counsel on language for this warrant article from Ms. Cushman. It was noted it should be two separate warrant articles in case one gets defeated. Ms. Cushman withdrew her motion with a second by Chair Oxnard. For the first warrant article, motion by Ms. Cushman, second by Ms. Lovejoy, and unanimously voted (Chair did not vote) to increase the Special Education Trust Fund cap to $500,000. For the second warrant article, motion by Ms. Cushman, seconded by Chair Oxnard and voted 4-2 (Ms. Lovejoy, Ms. Casey) to encumber up to $100,000 of any surplus monies in the 07-08 budget to go into a Special Education Trust Fund.

Motion by Ms. Magnusson: To raise and appropriate a sum not to exceed $100,000 for the purpose of conducting a full independent forensic audit of the Exeter Region cooperative School District operating budgets from fiscal years 2005-2008 and including the Exeter High School Capital Building Project Accounts. This audit would validate generally accepted accounting principles and provide guidance to the board to address any areas of improvement. This article will not have a tax impact and will come from the 2007-2008 surplus. Seconded by Chair Oxnard. Lengthy discussion followed on this motion. Unanimous vote to move the question. Vote on motion: Yes – 1, No – 4 (Cushman, Casey, Lovejoy, RigordaEva). Motion fails.

6. ANNOUNCEMENTS/PUBLIC INPUT: None at this time

7. NON-PUBLIC – None at this time

Chair reminded everyone that January 10^th Public Hearing on Budget at 7:00 PM with board meeting to follow and Superintendent Search Forum will be Monday, January 7^th at 6:00 EHS Library.

8. ADJOURNMENT: Motion by Ms. Cushman, seconded by Ms. Casey and unanimously board voted to adjourn at 2:43 PM.

Respectfully submitted,

Sally Boyd, Secretary