Saturday December 6, 2008
4-Town meeting of the Boards of Selectmen, School and Finance Committees of the Amherst Pelham Regional School System
At the Amherst Middle School Professional Development Center
Present:  Representative Stephen Kulik and Representative Ellen Story.

Amherst-Pelham Schools Acting Co-Superintendent: Helen Vivian.
Amherst-Pelham Schools Director of Finance and Operations Rob Detweiler

Town of Shutesbury Select Board:  Chairman Rebecca “Becky” Torres and member Al Springer.
Shutesbury Town Administrator David Dann and Administrative Secretary Leslie Bracebridge, recording.
Shutesbury Finance Committee Chairman Eric Stocker and member William Wells.
Shutesbury School Committee Chairman Michael DeChiara and members Daniel Hayes, Kristen Luschen
& Shutesbury’s Representative to the Amherst-Pelham Regional School Committee Marianne Jorgensen.

Other Amherst-Pelham Regional School Committee members:  Leverett Representative Michael Katz and Amherst Representative Elaine Brighty.

Town of Pelham Select Board members Edward Martin and James Huber.
Town of Pelham Finance Committee:  John Trickey and Gwen Hubley.
Town of Pelham School Committee:  Chairman Michael Hussin, and member KathyWeilerstein

Town of Leverett Select Board: Chairman Richard Brazeau and member Peter d’Errico.
Town of Leverett:  Town Administrator Marjorie McGinnis
Town of Leverett:  School Committee Chairman Farshid Hajir

Town of Amherst Select Board:  Stephanie O’Keefe, Diana Stein and Alisa Brewer.
Town of Amherst Assistant Town Manager/Finance Director John Musante
Town of Amherst Finance Committee:  Chairman Brian Morton and members Marilyn Blaustein, Andy Steinberg, Marylou Theilman, Kay Moran, and Douglas Slaughter.

Co-Superintendent Helen Vivian opened the meeting at 9:36 AM.:
* Things are not going to get better.
* State aid will stay flat or decrease.
* Expenses are fixed or increasing: salaries, health insurance and data reporting mandates.
* The current funding mechanism for charter school students causes a downward spiral for the public schools: 3 charter school students pull the equivalent of one teacher salary from the public school system.  As more students opt for a charter school, it affects what the public school can offer, due to the pulled funding.  This in turn has the effect of more children being pulled from the public school into the charter schools and even more funding being pulled from the public schools.
* To meet the challenges ahead, the schools must “pare down to a core mission.”

State Representative Stephen Kulik:
* Extraordinary national economic circumstances.
* Governor Patrick hopes not to make any mid-year cuts to Chapter 70 aid (as Romney did in 2003) while cutting $1.4 billion from a $28 billion budget.
* An anticipated 4% drop in Lottery receipts could reduce FY 09 aid to cities and towns.
* Some differences could be made up using reserve funds.
* The state will not raise taxes during a recession. 

State Representative Ellen Story:
* Since every legislator has schools, school funding is less likely to be cut than other funding.
* Even so, it’s going to be a tough year throughout state government.

State Representative Stephen Kulik (on behalf of State Senator Stan Rosenberg):  
* Which mandates need to be abandoned?  What are most burdensome and most costly to towns?
* Charter schools are a financial burden on small towns in “huge and unpredictable” ways.

Shutesbury School Committee Chairman Michael DeChiara:
* Think outside the box.  This crisis could be an opportunity.

State Representative Stephen Kulik gave examples of possible opportunities:
* Allow municipal Schools to join the state’s group insurance plan.
* Regionalizing/consolidating school districts to reduce administrative costs.

A Pelham spokesperson listed the biggest things to provide municipal relief:
1. Give communities the autonomy to modify health plans – 80% of the budget is people.
2. Tax-exempt state owned land puts pressure on taxable properties.
3. Don’t “raid” lottery receipts as was done in last 2 economic down-turns.

Leverett Selectman Peter d’Ericco:
* Suggests a constitutional challenge to charter schools which have no elected officials and are held harmless, except that it would be very expensive.

State Representative Stephen Kulik responded to a woman who spoke of savings of tens of thousands of dollars by getting common prescription drugs from Canada, said that, “Spending in health care is 40% of the state budget” and the suggestion is “well-taken.”

Amherst-Pelham Regional Schools Business Manager Bob Detweiler:
* Is looking at a reduction of revenue streams for FY 10.
* Is looking at using stabilization to pay interest on the middle school roof, freeing up $60,000 - the only bright spot in the budget.
* Expecting about $250,000 less in revenues next year.
* Amherst would like to see the Regional assessment come in at 3.5% increase.  This would mean the following for:   Pelham	5.7% assessment increase
Leverett          2.8% assessment increase
Shutesbury	-1.4% assessment (decrease)
   (These percentages were calculated before Bob learned today about cuts to Chapter 70 for next year.)
* Bob is taking the “modular” approach to building the FY10 budget – one topic at a time.
o Example:  Transportation :
* First cost out all components of transportation.
* Then see what can be eliminated: Example – After-school transportation – but that would eliminate after school programs – everything affects something else.  If kids are sent to charter schools because the after school programs are cut, that could cost more than running the after school program.
* Over 80% of the school budget is “people.”
* Bob requested guidance from the town representatives:
Pelham Finance Committee member John Trickey:  It never gets better.  Pelham is looking at cutting everyone else, including the elementary school in order to meet the regional increases.
Shutesbury Finance Committee Chairman Eric Stocker:  Shutesbury is in relatively good shape having passed a 2½override this past May.  That was with the understanding that there will not be another override in the near future.  Shutesbury’s goal is to hold all departments to a 2.75% increase.  Clean-up costs for the soil contamination site are unclear but could easily be a couple of hundred thousand dollars and so far, no state or federal funds have been found to help with those costs.
Leverett Select Board Chairman Richard Brazeau:  Leverett generally wants to support schools.  Last year Leverett avoided an override.  Schools take the biggest chunk of the budget.  “We’re talking people cuts.”
Shutesbury Select Board Chair Rebecca Torres:  The region needs approximately a 7% increase to level fund services.  This is the equivalent of a $14 increase in assessments if Chapter 70 funding stays even. 
Town of Amherst Assistant Town Manager/Finance Director John Musante:  All increases so far are based on the assumption that there will not be cuts in state aid.  A 15% cut in state aid would cause a significant increase in the gap.  We are looking at a multiple year problem.  We need to look at cuts to get us through the long run.
* Handouts from today’s meeting will be put online to be available to everyone.

Amherst-Pelham Schools Acting Co-Superintendent Helen Vivian: 
On the superintendent search:
* Search is being managed by Consultant Jackie Roy.
* Applications have to be in by 12/15/08.
* Co-Superintendents Vivian and Sprague, currently scheduled to work until June of 2009, are willing to stay on longer if needed or leave earlier if not needed.  This is a fantastic place to work.
On a K-12 Region:
* A $25,000 grant is available to study the implications.  The state is not “forcing” the idea; rather it is providing a strong incentive to consider it.
State Representative Stephen Kulik:
* In meetings that he has attended people are encouraging an incentive based method, enforcement has back-fired in the past.
Amherst-Pelham Schools Acting Co-Superintendent Helen Vivian: 
* The $25,000 can be used in any way.
* Known problems to regionalization of the 4 towns:
o Getting the computers in the schools of all 4 towns to “talk to each other.”
o Everyone would have the same contract, so the lowest salaries would go to the highest contract amounts.
o There would only be one school committee to which the towns sent representatives proportionate to the size of the town.  Towns would give up autonomy.
* There may be some efficiencies to collapsing the separate structures into a region:
o Right now, some staff get three different paychecks.
o Union 28 sends children to 3 different high schools.  This could create further regionalization for some towns with Greenfield and Turners; not just with Amherst.
o If one region, than transportation would be 89% reimbursable for this year at least.  This formula could change.
Comments from unknown people included:
* “It’s not about the money; it’s about what is sound educationally.”
* The state of Maryland has 24 regions.  Massachusetts has 391 school entities
* Some studies show regionalization result in savings for the first few years only, but then additional positions are created to take up the additional responsibilities placed on the superintendent.
* Consolidations can result in the lose of high-performing small schools.
* Amherst spends 3.5% on administrative costs.  In the state of Maine, where consolidation has taken place, 4% is spent on administration.
* When a grant is offered, look closely at it.  Will it take people away from essential things?
Leverett Selectman Peter d’Errico:
* Specify ahead of time what the $25,000 would be used for.  If the study results in some sort of cost savings through collaboration then it will be worthwhile.
Pelham School Committee Chairman Michael Hussin:
* People are happy with the status quo.
* Concerned that the state is imposing change.
* Fearful that the state could force certain region towns to work with Greenfield rather than stay with Amherst.
Amherst-Pelham Schools Acting Co-Superintendent Helen Vivian: 
* The state commissioner wants these conversations to happen.
Shutesbury School Committee member Daniel Hayes:
* If the grant improves education and efficiencies that would be good.
* The Union 28 allows for independence for the towns while sharing efficiencies; maybe Unions are the way to go.
Amherst-Pelham Schools Acting Co-Superintendent Helen Vivian: 
* Unions are not attractive because of the 4 separate school committees.
Shutesbury School Committee member Daniel Hayes:
* The focus should be quality of education and efficiency, without being forced into something the towns do not want.

Unknown participant comment:
* The state is going in two different directions with charter schools on the one hand and consolidation on the other.

 Shutesbury School Committee Chairman Michael DeChiara:
* Feels Shutesbury has a model school.  The problem is working with the state Education department.
* Union 28 has been in existence for 100 years and it is unclear how to dissolve it.
Shutesbury Select Board Chairman Rebecca Torres:
* The financial problem is at the middle and high school, not at the elementary school.
* How are we going to come together as four towns in a fiscal crisis to get the best possible quality education?
Shutesbury Representative to the Amherst-Pelham Regional School Committee Marianne Jorgensen:  The Regional School Committee needs clarity as to whether to pursue the $25,000 grant.  Please give feedback to the respective regional committee representatives and the Regional Committee will make a decision at the December 16 meeting.
Shutesbury Select Board Chairman Rebecca Torres:  Shutesbury is interested.
Shutesbury Town Administrator David Dann:  Could representatives from other Union 28 communities be included to help promote understanding of what is taking place?
Shutesbury Select Board Chairman Rebecca Torres:  Meeting minutes could be shared.
The meeting adjourned at approximately 11:00 AM.
Respectfully submitted,

Leslie Bracebridge 
Administrative Secretary
081206 Part 1 4-town Select Board, fin. comm. and School Comm. 4