Rye School Board Budget Meeting RCL Notes 11-8-13

NOTES OF NOVEMBER 8, 2013 RYE SCHOOL BOARD MEETING

Final Revision B – Provided by the Rye Civic League

Present:  School Board members Peggy Balboni, Mike Schwartz, Jeanne Moynahan, Scott Marion, Mike Moody.  SAU50 Superintendent George Cushing, SAU50 Assistant Superintendent Mary Lyons, SAU50 Business Administrator Jim Katkin, Rye Junior High Principal Chris Pollet, Rye Elementary School Principal Suzanne Lull, plus one other person from SAU50

Present from public:  Peter Crawford, Laura Brown, Alissa Tweedie (left about halfway through the meeting).

This was a session from approximately 8:30 a.m. to 2:00 p.m. in the basement meeting room at the Rye Public Library.  These notes summarize the meeting and are arranged by subject rather than chronological order.

Summary

 Budget for 2014-15 will  increase, nearly 2%.  High School tuition cost is the largest increase.  Early retirement of 4 teachers offset most of the other mandatory budget increases.

1. Bus contract is currently being evaluated.
2. Salaries for those not covered by the collective bargaining agreement are projected to go up by 3%.
3. At RJH Apple notebooks are used for content creation, while less expensive Chrome Books are used when the device is just needed for access.

Overview

             Jim Katkin announced that the overall proposed budget for 2014-2015 would be up 1.99 percent, or approximately $257,000, over the 2013-2014 budget.  The high school portion of the budget is up from $2.883 million to $3.141 million, or $258,000.  Thus, the entire increase in the budget is represented by the increase in the high school portion.  The rest of the budget is flat.  Editor’s note:  Although not explained at the meeting, Mr. Katkin explained to the writer that four early retirements of teachers in the current year had a .8 year payback.  Thus, most of the benefit of the reductions did not occur until the 2014-2015 budget.  This permits the budget, excluding the high school, to be flat.

 High School

             Mr. Katkin explained that there are currently 195 or 196 students at Portsmouth High School.  The 2014-2015 budget plans for 203 students.  This assumes that 80 percent of the current 65 Rye 8^th grade students will continue on to Portsmouth High School.  That amounts to 52 students.  Also, although the final tuition rate has not yet been determined, the proposed budget projects an increase of 4.4 percent, for a total increase of approximately $149,000 for high school tuitions.  On top of that is another $93,000 increase for special education tuitions at the high school level.  Editor’s note:  For the fiscal years 2009-2010, 2010-2011, 2011-2012 and 2012-2013 respectively, the percentage of Rye eighth graders attending Portsmouth High School was 67.1%, 83.6%, 90.2% and 73.2%.  The budget for 2013-2014 reflected an 85% ratio.  There appears to have been a blip due to the economy, and the percentage of students attending private schools is back to more traditional levels.  The reduction to 80% appears justified.

 Bus contract

             In addition to the high school tuition rate, which has still not been finalized, as the Board was meeting it was expected that bids for bus service would be received in the next day or so.  Thus, the pupil transportation cost was also estimated.  It is hoped that three companies will bid.  The contract will replace one that is expiring, and will be for three years, with a renewal option for two years at the Board’s discretion.  The bid is being done on an SAU-wide basis, but the four districts will have separate contracts.  Thus, the possibility arises, and is even likely, that the best overall bid may not be the best for each of the four districts comprising the SAU.

Salary and benefit increases

             Salaries for those not covered by Collective Bargaining Agreements are projected to be up by 3 percent.  Retirement costs are flat as increases for that are on a two year cycle.  There will be an increase for 2015-2016.  Also the State pension plan has gone from 62 percent funded to 57 percent funded.  Editor’s note:  The percent funded takes the value of the assets in the pension plan and divides that number by the benefits that are projected to be paid out, discounted to present value to reflect returns that will be made on the assets in the pension plan prior to the time of payment.  Medical insurance is capped at 4.7 percent guaranteed maximum rate.  While there are some minor changes in staff hours projected, no additions to staff or reductions of staff were discussed.

Approximately $47,000 in salaries were added by the Board during the day’s discussions, relative to the budget that Mr. Katkin had presented.  However, these were offset by reductions in math textbooks that were determined not to be needed, and in notebook computer purchases that were delayed.  Thus, it appears that the budget figure adjusted for all of the changes is still below the 2 percent projected by Mr. Katkin.

Per pupil cost, enrollment and class sizes

             The cost per pupil was a significant point made by Mike Schwartz several times during the discussion.  On several occasions he was outvoted when the Board decided to add costs to the budget.  Mr. Schwartz argued that the cost per pupil at Rye Junior High School is approximately $21,000 annually, among the highest in the State.  He argued that, with such a high per pupil cost, it should be possible to generate savings elsewhere.

Rye Junior High School principal Chris Pollet acknowledged that Junior High School attendance is projected to be down in a few years.  He argued, however, for the continuation of four person teams.  He acknowledged the likely effect on cost per pupil.

There was a discussion regarding the current fifth grade enrollment, which is 69.  That would result in 23 students per teacher if there are only three sixth grade teachers.  Scott Marion noted that he knows of three fifth graders who will not be attending Rye Junior High School, thus the number will probably be closer to 65.   Editor’s note:  The Junior High School uses teams of teachers with specialization by subject, thus reducing the number in the team for a class may require some teachers to teach outside of their specialization, unless the teachers teach multiple grades.

Rye Elementary School enrollment is currently at 318 vs. 298 budgeted for 2013-2014.  Jim Katkin acknowledged that the live birth data must be increased by approximately 48 percent to arrive at Kindergarten enrollments.  He stated that he is mystified by this effect, which he does not see in other towns.  Rye has a stable population with few apartments or mobile homes, so it should be easier to predict the incoming enrollment.  He suggested, however, that the School Board focus on overall school enrollments rather than grade-by-grade enrollments.

Technology and warrant articles

 There was an extended discussion regarding expenditures on technology.  Peggy Balboni pointed out that a substantial amount of money has been spent on technology in recent years, and the technology function is now without a leader.  Editor’s note:  This is an apparent reference to Jason Saltmarsh, responsible for IT at the SAU level.  He resigned recently.  In addition, Ms. Balboni stated that, in the past, Apple products have been purchased.  Now the purchase of Chrome Books is being proposed.  Chris Pollet distinguished between creation and access technologies, apparently arguing that Apple products were suitable for creation of content, while the less expensive Chrome Books were suitable when only access was required.

There was also discussion about the “white boards†and televisions for the elementary school classrooms.  Currently only 3 of the 20 classrooms have these.  Mike Schwartz argued for an $85,000 warrant article to purchase an additional 17 units at approximately $5000 each.  However, Elementary School Principal Suzanne Lull and Jim Katkin argued against this, stating that not all teachers were trained, or even wanted to use the technology.  Jeanne Moynahan suggested that $40,000 be spent on these.  However, the suggestion failed to gain traction and Jim Katkin suggested that further technology purchases be put on hold pending a future decision, and implicitly, the hiring of a new head of IT.  There was discussion about using the unreserved fund balance for these purchases, a discussion that would occur at another meeting in the near future.  Editor’s note:  Generally, the school budget is appropriated on a “use it or lose it†basis.  With a few exceptions, funds not spent by the end of the year are lost and must be reappropriated the following year.  However, the School Board is bound only by the total budget, and not the individual line items within it.  Thus, as long as it spends the money by the end of the year, it can take any surplus funds and use them for any purpose that it chooses.  This is apparently what Mr. Katkin was referring to.

Other than the possible warrant article for technology, no other warrant articles were discussed.

 Debt service

           The School District is in the 18^th year of a 20 year bond.  Principal has been paid down so the interest cost is less.

Heating oil

Heating oil is budgeted at $3.49 per gallon.  The current supplier is Hanscom Truck Stop.  Editor’s note:  See the notes of the June 10, 2013 Board of Selectmen meeting.  The heating oil contract for July 1, 2013 to June 30, 2014 was awarded to Hansom at $2.909 per gallon.  The contract covers the School District as well.  Thus, the budgeted amount is significantly increased from what the Town and School District are paying this year.  The Junior High School alone uses 15,000 or more gallons per year.