Combined Shutesbury Board of Selectmen, Finance and School Committee meeting Minutes January 29, 2008 Select Board members present: Chairman Rebecca Torres, Debra Pichanick and Ralph Armstrong. Finance Committee members present: Chairman Eric Stocker, and members: Rus Wilson, Lori Tuominen, Elaine Puleo, Al Springer, Mark Poscik and Patrick Callahan. School Committee members present: Chairman Daniel Hayes and members Michael DeChiara and Marianne Jorgensen (at 7:30 PM.) Also Present: Shutesbury Elementary School Principal Robert Mahler, School Union 28 Superintendent Joan Wickman, Business Assistant to the Superintendent Charlie Paulin, Shutesbury resident William Wells, Town Administrator David Dann and Administrative Secretary Leslie Bracebridge, recording. Meeting opened at 7:05 P.M. Finance Committee Chairman Eric Stocker: In round numbers the budget is going up 5% and revenues are going up 3%. Over the years many departments have “inched up.” We have to keep budgets within 3% growth. School Committee Chairman Daniel Hayes: Sees the needs of the school and also sees the position of the entire town. Last year the School Committee achieved a 3% increase, (mostly due to retirements) and ended up with a $10,000 surplus given back to the town at the end of the year. The school budget also depends on state revenues coming in. Everyone at the table supports education. For FY 09 level services would have been a 4.28% increase. The School Committee managed to bring it down to 3% through cuts to field trips and programs, arts enrichment, instructional specialists and materials and instructional supplies. (See Draft FY 2009 Shutesbury Elementary School 3% Budget, Addendum #1.) Union 28 Superintendent Joan Wickman: Coming in every year at 3% is really a downward spiral in services. Next year a 3% budget would be taking people.” To continue at 3% will have more and more of an impact. Shutesbury’s enrollment is going up causing “pressure points.” Shutesbury Elementary School Principal Robert Mahler: There are too many risks involved for parent drivers for school trips; the policy no longer allows it. The minimum cost for a field trip bus is $150. Children have to contribute to the field trip costs. There is no longer a line item for arts enrichment, and instructional supplies are chewed up” quickly by textbooks and workbooks. Union 28 Superintendent Joan Wickman: This year the Community Partnership Coalition (CPC) grant program is not so uncertain. Anticipated funding levels have been applied to the budget. School Committee Chairman Daniel Hayes: Parents still drive to the field trip location to be a part of the program, as the bus is packed with children. Field trips support classroom work: Writing in journals and digital cameras to write photo stories. Shutesbury Elementary School Principal Robert Mahler: The three revenue streams are: public funds, in kind (parent and community volunteers - learning partners and tech support) and grants. School Committee Chairman Daniel Hayes: The musical instrument program, in its second year was promoted for equity so that every child in the school can participate. Instrumental instruction helps children learn and helps how they are placed on the middle school teams. String instruments are taught for grades 2-6, and wind instruments to grades 3-6. A total of 53 children participate. The stringed instrument program doubled in one year with the budget support. Resident William Wells: Requested clarification of a newspaper article he had read that suggested to him that while Shutesbury requires a staff of 35 to teach 146 students, South Deerfield educates 1000 students with 90 staff. Shutesbury Elementary School Principal Robert Mahler: Suspects the 90 staff are just the teachers and does not include the support staff. Shutesbury’s number includes every employee. Further there is an economy of scale: all schools need “one of each.” While South Deerfield may have one full time person rotating amongst the schools, Shutesbury may have one part time person doing the same job at our one school. School Committee Chairman Daniel Hayes: The School Committee always looks at economy of scale and recently combined a service union wide. The School Committee weighs the autonomy of the school while working efficiently and effectively with the Union. “We always look at providing the best quality services to kids.” Teachers with similar roles collaborate within the union. Shutesbury Elementary School Principal Robert Mahler: Recommends comparing “apples to apples.” It would be better to compare Shutesbury staffing to the other towns in the union. We struggle with 3% when class size reaches 24 to 26 students. The bigger classes are not as good a learning environment as smaller classes. There are 29 second graders. The “bubble” has an impact on the entire school. There are 24 fourth graders and 22 sixth graders. Switching from an aide in a large classroom to a second class and adding a teacher would cost another $25,000. It’s a tough call. Union 28 Superintendent Joan Wickman: We are in the second of a three-year contract and will re-start contract negotiations next year. School Committee Chairman Daniel Hayes: In terms of “School Choice” we work hard to make the school attractive to students who opt out. The numbers leaving have not increased this year, though none have come back. It’s difficult when a parent works in another school. Each year the School Committee looks at how School Choice would affect finances. Shutesbury Elementary School Principal Robert Mahler: Enrollment in preschool has increased dramatically and kids who start in preschool tend to stay. Once the budget becomes dependent on a School Choice figure, if one child graduates, the budget needs a replacement just to keep even. Once a school accepts a School Choice child the school is committed to keeping the child year after year. Business Assistant to the Superintendent Charlie Paulin: Union 28 has a $500,000 budget. Salaries account for $400,000 of the budget. All staff members are close to the top of the salary scales. Finance Committee Chairman Eric Stocker: Aside from the elementary school budget there will be a net increase to the total Shutesbury school budget line of between $12,000 and $16,000 more for transportation after its removal from the regional budget. School Committee Chairman Daniel Hayes: There are no additional programs from FY 08 to FY 09. The instrumental program was added two years ago. The arts line was extra last year. Shutesbury Elementary School Principal Robert Mahler: Last year, when retirements happened the savings were used up in steps and cost of living adjustments (COLA’s) for new and existing staff. The FY 08 budget would have been higher without the retirements. There are no anticipated retirements this year. School Committee Chairman Daniel Hayes: We do encourage staff to become better teachers. Union 28 Superintendent Joan Wickman: When staff has achieved advanced degrees or levels of credits they change lanes.” Salary formulas include annual steps, COLA’S and lanes.” Finance Committee member Lori Tuominen: Inquired if the schools have looked at smaller vehicles than the big school busses, with only a handful” of kids riding them. Regional School Committee member Marianne Jorgensen: Soon it will be up to us. All transportation has been and is currently at the region. The Shutesbury and Leverett routes are contracted out by a separate company. A number of considerations for the larger busses were suggested: * A limit of how long kids can be on the bus. * Business Assistant to the Superintendent Charlie Paulin: o The real costs in busses are depreciation in value, operation and the driver. Several smaller vehicles have higher costs in all three areas. To purchase a 75 seat bus over one with 31 seats is not that much more because it’s just putting on a longer box. In this state you can’t run a 16 person bus so you have to go down to a 7 seat van and then you still have to pay the drivers and the insurance. The economics of larger busses makes sense. It’s an expensive business to be in. o Union 28 can help with future transportation bidding for Shutesbury. The Union already does the school bus bidding for Erving and New Salem. Though they are currently locked into a contract, Charlie could probably “co-bid.” He will begin an analysis for this coming year. * Shutesbury and Leverett (?) pay $250/day per bus and are running 3 and 4 busses. * Mixed opinions were expressed on the safest way to ride being a big bus without seatbelts or a little van with seatbelts. * The busses also drive students to the regional schools. * Regional School Committee member Marianne Jorgensen: Amherst owns some of their busses and maintains them, benefiting Shutesbury. The changed transportation formula will bring Amherst down $50,000, Leverett up (?), and Shutesbury up a net $12,000 to $16,000. Discussion turned to the Regional School budget: Regional School Committee member Marianne Jorgensen: * The Regional budget will be “driven” by Amherst and Pelham both having limitations on their budgets. The first budget had an 8% increase. For Amherst to keep its assessment at 3%, cuts must be made. $100,000 is already come from the excess and deficiency (E&D) funds and the rest from cuts. The High school is already down teachers so kids are in study halls. Advanced Placement classes are down. There is a 3-year plan to get the number of teachers back up. * The sub-committee (Becky, Eric and Marianne are on) agreed to recommend that the E&D fund be increased to 5%. * Contract negotiations aren’t settled but Marianne is “pretty comfortable” that there’s enough in the proposed budget to cover the outcome. * A 1.6% increase is fiscally good for Shutesbury. Not so good for education. * The proposed budget has Pelham going up 5.7% (due to a student population increase) and they will have to go for an override. * All four towns have to approve the new E&D account cap. The school committee has to vote on how to use the E&D. * A change in the accounting method for carrying forward circuit breaker funds caused extra money in the budget at the end of last year. Finance Committee member Elaine Puleo: This will really be tough for the regional schools. Can cut this year but next year, there’ll be nowhere to go. A 2% increase at the region equals a 1.6% to Shutesbury. The region needs a 4% increase for level services. Finance Committee Chairman Eric Stocker: Shutesbury’s budget projections will be changing tonight with the new regional information. School Committee member Michael DeChiara: Suggests a Shutesbury town meeting warrant article to consider paying more to help peer towns. Amherst’s Town meeting is going to be asked to endorse a graduated income tax. Statewide voters will be asked about doing away with the state income tax. The School Committee, Superintendent, Principal left at 8:20 PM. * There has been no change in the School Building Renovation reimbursement question; no hearing date is set. If the funds are docked” it’s debt excluded Town Administrator David Dann led a line by line review of the proposed budget reviewing the comments in the right hand explanation column and more (Addendum #2): * Investment income is down because reserves are down. * The new expense figures leave us about $250,000 out of balance. * Line 24: Funds are building up for a 2011 revaluation; it’s done every 3 years. * The Treasurer analyzed the insurance numbers and concluded that current member ship in the Franklin/Hampshire group insurance program is more beneficial for the town than the state plan. * The Capital Planning Committee met but hasn’t yet made any recommendation. * School audit funds will be deducted from the state aid. Finance Committee Chairman Eric Stocker: * Hypothesized that the capital plan could be funded from Free Cash and Stabilization and the rest of the budget can be generated from the state and what we hope to raise. * Predicted that the town may have to have an override in a year or two. Town Administrator David Dann: * Reviewed use of free cash in the last few years. (Addendum #3) * Reported the Treasurer’s sense that if cash reserves go down below 10% of the budget consequences might be to have to go out to borrow, and to therefore pay interest rather than receive the interest earnings that we’ve been enjoying. * David will ask how much we can expect from excess SPED Circuit Breaker funds this year. * Reviewed projected revenues (Addendum #4) listing a number of accounts that might generate $50,000 in Free Cash from unexpended funds. Finance Committee Chairman Eric Stocker: listed the three alternatives: Cut the budget, spend free cash, or have an override. Finance Committee member Patrick Callahan: We don’t know where state aid will come in and it amounts to 1/3 of the revenue. At 9:30 PM Selectmen broke from the Finance Committee meeting to continue business in independent groups. Board of Selectmen: Becky: If the budget can be trimmed to a $140,000 shortfall, and $100,000 of free cash and $40,000 of stabilization funds could be used, it would help to hold off an override for another year. Selectmen unanimously voted to approve a warrant left out of last week’s warrant for the Amherst Regional School budget for a total $368,463.50. Selectmen unanimously voted to sign a letter to MassHighway requesting a change in a catch basin grate style as requested by the Highway Superintendent. Whenever there’s a change (There is good reason for this change as the different style grate will make it easier to clean the debris that accumulates in the grates.) the first part of the process is to ask the engineer for approval. The engineer has approved this change and has stated that there will be no change in price for this change. Even so there is a requirement that the change letter state that the town will assume any extra costs should there be some for the change. The only cost to the town was in two or three hours of engineering time. Discussion of where Mass Highway would set up a field office included why the church will not be used, the search for another space, perhaps the parsonage, or putting a trailer somewhere. Water and electricity are needed. The construction company has to pay for Mass Highway’s 40 sq. ft. field office. The Leverett, Cooleyville and Prescott Road Reconstruction Committee will be called to a meeting the middle of February. David has a few new members for an ADA Committee. Debra announced that she would not be able to re-run for Select Board right now. Becky thanked Debra for her commitment to Select Board activity. Debra said that she would still try to attend some Select Board meetings and would like to join a committee. A motion was made, seconded and unanimously voted to adjourn at 9:50 P.M. Respectfully submitted, Leslie Bracebridge Administrative Secretary 080129 Select Board 1