Budget Committee School Budget 12-11-13 RCL Notes

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NOTES OF DECEMBER 11, 2013 RYE BUDGET COMMITTEE MEETING

SCHOOL BUDGET SESSION

Final Revision B – Provided by the Rye Civic League

Present from Budget Committee (counterclockwise around table):  Ray Jarvis, Randy Crapo (Jenness Beach Precinct Representative), Shawn Crapo, Jim Maheras (Vice Chairman), Paul Goldman (Chairman), Ned Paul, Peggy Balboni (School Board Representative), Doug Abrams, Ralph Hickson (Rye Water District Representative), Craig Musselman (Selectmen’s Representative, sitting in audience), Frank Drake (Rye Beach District Representative) (arrived late, at approximately 7:02 p.m., and sat in the audience)

Also present (sitting in audience):  George Cushing (superintendent), Jim Katkin (SAU Business Manager), Jeanne Moynahan (School Board Chairman), Mike Moody (School Board), Suzanne Lull (new Principal, Rye Elementary School), Mike Schwartz (School Board, arrived late at approximately 7:45 p.m.), Chris Pollet (Rye Junior High Principal, arrived late at approximately 7:46 p.m.).

Present from the public:  Peter Crawford, Steven Borne

Editor’s note:  For ease in finding particular sections using the archived video and audio on the Town website, the elapsed time is indicated.  Use the slider and the elapsed time indicated at the bottom of the video window to fast forward to the desired section.  Videos on the Town website may currently be accessed at www.town.rye.nh.us by clicking on “Town Hall Streaming†at the bottom left of the screen.  Follow the link for “Town Hall Live Streaming,†then find the meeting by date under “Previous.â€

The video starts at 6:30:09 p.m.

Summary

1. A budget increase of 2.04 percent is proposed, up from a 1.84 percent average increase over the past five years.
2. The cost per pupil for the Rye schools is up $1228 due to declining enrollment.  The Budget Committee debates the relevance.
3. The high school accounts for the increase.  The number of students and the tuition rate per student are both up.  The increase is approximately $257,000 despite an assumed increase in eighth graders attending private schools from 15% to 20%
4. School health care increase of 4.7 percent vs. 17 percent for the Town, is unexplained, but will be looked into
5. The Budget Committee unanimously approved  the proposed $13.2 million budget without modification.

Introduction  by Paul Goldman (0:00 elapsed)

After the meeting was called to order, Chairman Paul Goldman announced that the Town Budget Session the following night would begin at 7:00 p.m.  The Committee will be going through warrant articles and this would be the only shot at it, he said.  Minutes would be approved at tomorrow’s meeting (i.e. December 11, 2013).  The purpose of tonight’s meeting would be to review and vote on the 2014-2015 school budget.  Section 5, the operating budget, would be addressed department by department, rather than line item by line item.

Mr. Goldman announced that the budget was a 2.04 percent increase (budget to budget).  There are, at the moment, no additional warrant articles.

Opening comments by School Board Member Peggy Balboni (5:58 elapsed)

Peggy Balboni, the School Board representative, began the discussion by explaining changes to the layout of the budget book.  The total gross budget is $13,213,843, which is up 2.04 percent.  The district assessment is up $275,254 or $.16 on the tax rate.  Of that, $250,988 is due to increases at the high school level, of which approximately $148,000 is due to high school tuition.

Over the last five years, the average increase has been 1.84 percent.  The cost per pupil is up due to declining enrollment.  Staff adjustments are minimal; there are some increases in hours.  There has been a reorganization in IT, with three positions eliminated and replaced by two new positions.

This is the final year of a five year contract with the teachers union.  This year there is a 3.5 percent increase in compensation, however with steps and stipends, the average salary is up 4.5 percent.  The paraprofessional contract was renegotiated last year, and is in this budget at an increase of approximately 3 percent.  Rye’s portion of the SAU50 budget is down 1.7 percent.

Although the health insurance rates are up 4.7 percent, the health insurance line item is down approximately $137,000 due to early retirements last year and the renegotiation of the paraprofessionals’ contract.  Certain health plans are no longer offered to them.

Presentation by Jim Katkin, Business Manager, SAU50 (11:02 elapsed)

Mr. Katkin stated that Section 6, the default budget, has been added.

Mr. Katkin explained that, according to CityData.com, the median home or condo value in Rye is $543,377 (see page 37 of the budget).  Adding the $.16 increase to the current $10.97 tax rate, the new tax rate would be $11.13.  Editor’s note:  This rate assumes that the Town and County tax rates would remain the same.  In addition, none of the figures include taxation by the Village Districts or the Rye Water District.  The tax increase for the average home would be $86.94, Mr. Katkin said.

The benefits are included in the District Wide line item appearing on page 38, Mr. Katkin explained.  The guaranteed maximum increase in health care for this coming year is 4.7 percent.  Due to early retirements and elimination of the more costly indemnity plans, the payback on the retirements occurred even faster than the .8 years projected.

The elementary school is up about $62,000 or 1.95 percent, and the middle school is down about $53,000 or 2.20 percent.  The high school increase is what is driving the budget.  It’s up $257,000, constituting most of the $264,000 increase.  Special education is the biggest question; there are some transitions and students with severe disabilities.  The overall K-12 budget for Special Education is up about $91,000.

The high school tuition budget is up $148,000 due to five more students projected for Portsmouth High School and an increase in the projected tuition rate of 4.8 percent.

Mr. Katkin then explained the difference between the $148,000 and the $257,000.  While one of the elementary school special education students moved out of the district, there is a $94,856 increase in high school special education for out of district, and an additional $16,604 increase for transportation.  That accounts for the difference, Mr. Katkin said.

In response to a question from Randy Crapo, Mr. Katkin acknowledged that the high school tuition includes tuitions for persons up to age 21, not merely those of high school age.

Mr. Katkin then referred to page 39 of the budget.  After the high school tuition increase, the second highest increase is in the elementary school teaching salaries.  The early retirements really did not affect the elementary school, they primarily affected the junior high school.  There had been a retirement at the elementary school, however a more senior teacher at the junior high school was transferred to the elementary school.

In response to a question from Shawn Crapo, Mr. Katkin clarified that taxes and health care are not included in the figures.

Jim Maheras asked what was occurring with the special education increases.  Mr. Katkin referred to page 30 of the budget.  While special education as a percentage of the total has increased from 7.25 percent to 8.62 percent, the special education tuition is up from .57 percent to 1.20 percent.  Editor’s note:  These figures reflect the increase over two years, from 2012-2013 to the 2014-2015 proposed budget.  Mr. Katkin explained that this is due to the severity of the disabilities that cannot be handled within the district.  In response to a question from Doug Abrams, Mr. Katkin again confirmed that special education goes through age 21.

Ray Jarvis referred to page 27 of the budget, and the figure of an average annual increase of 3.44 percent over the past ten years.  He stated that that is quite an exaggeration, because the figures have not been adjusted for inflation.  Craig Musselman asked whether an arithmetic or geometric average had been used to do the calculation.  Mr. Katkin confirmed that the average was arithmetic.  Selectman Musselman observed that using an arithmetic average overstated the rate of increase.  Editor’s note:  An arithmetic average growth rate would be calculated by taking the growth rates for each year over the prior year and averaging the years.  A geometric average growth rate is an apparent reference to a compound annual growth rate.  A compound annual growth rate is calculated by taking the last year, dividing by the first year, and then raising that figure to the power of 1/n, where n is the number of years between the first and last years.  One is then subtracted from the result, which is then divided by 100 to arrive at a percentage.  Example:  2010 had a cost of $100, 2012 had a cost of $121.  The compound annual growth rate is 10 percent, calculated using the formula:  (((121/100)^(1/2)) – 1) /100.  When the growth rate is constant, the average and compound average growth rates will be the same, however, the compound annual growth rate will be lower if the growth rate varies, particularly if there are one or two years of high increases relative to the other years.

There was then a discussion about whether or not inflation adjusted figures would be more representative, or whether there might be a danger of confusing people.

Frank Drake is seen arriving on the video at 31:31 elapsed.

Mr. Katkin stated that the increase rate would be down from 3.44 percent to 1.2 or 1.3 percent if the figures were adjusted for inflation.

Referring to page 39 of the budget, Mr. Katkin explained that the elimination of three IT positions and the creation of two positions resulted in essentially a wash.

Mr. Katkin explained the ESOL (English Speakers of Other Languages) that appears on page 40.  Federal law requires this for students when English in not spoken at home.  There are some such students living in Rye.

Mr. Katkin explained the health care reduction of approximately $137,000 appearing on page 41.  Negotiations resulted in the indemnity and point of service plans being no longer available to the support staff, leaving a choice between two HMOs.

The IT reorganization, which eliminated three positions and created two positions also eliminated one person’s health insurance.

Mr. Katkin noted the decrease in teaching salaries at the middle school of approximately $15,000, which is occurring despite an increase in average salaries.  They are picking up benefits from the early retirements.

Mr. Katkin also explained that the reorganization in the IT area provided a tactical benefit, as there is no collective bargaining agreement with systems and database administrators.  Collective bargaining is applicable to support staff and teachers only.

Mr. Katkin then noted that the per pupil cost is up $1227.51, from 2011-2012 through the end of last year, as shown on page 43.  The reason is a temporary decline in enrollment at the Junior High School.  They are hoping that it will go back down when the pupils go back up.  Over the last two years, the increase has been almost 12 percent, he noted.  They are aware of this, and are concerned about it.

Mr. Katkin then referred to the enrollment projections on page 122.  The enrollment at the junior high school will be back up into the 190 range, he said.

Mr. Katkin then referred to the birth data on page 125.  These data comes from State of New Hampshire, Vital Statistics.  Births are not occurring in Rye.  The population is aging.  The average age is now 48.1 years, which is far from child bearing age.  Rye formerly had more births than Greenland, however the building areas have been maxed out.  The Board is cognizant about the aging population and is looking at alternatives.  According to the projections, the per pupil cost will be coming back down slightly, but not back to where it was three or four years ago.

Ray Jarvis ask about the usefulness of the measurement, as a change in ten students could significantly affect the average.  Ned Paul disagreed, stating that it was a useful measurement.  Randy Crapo stated that, at some point, it should trigger a reduction in staff, however the School Board has not yet taken action.  Peggy Balboni disagreed, stating that the School Board had taken a teacher out at the middle school last year.  They are aware, and are trying to make changes to meet the shift in population.  Mr. Katkin stated that the measure is required by the State, and it is an important one as it permits comparison with other towns such as North Hampton, Hampton and Greenland.  They would use the figure to go back and see what caused them to get to that point.

Ray Jarvis stated that he did not believe that the measurement was useful.  Randy Crapo stated that, in some meetings, other people have come up with tables and they have been way off.  Having the table in the budget prevents people from coming up with their own numbers and getting up in a meeting with incorrect calculations.

Steven Borne, 431 Wallis Rd., spoke from the audience indicating that he believed that one of the reasons that there may be fewer kids at Rye Junior High is that they are going to Heronfield and Berwick.  He stated that he had gone to an open house at Heronfield and there were a lot of Rye families there.  Mr. Katkin indicated that he had not done an analysis of this, but acknowledged that Rye, as an affluent community, might have more people with means that are able to send their children to private school.

Frank Drake asked about tactics, other than the one mentioned, to reduce the cost per pupil.  Mr. Katkin responded that there had been discussions about whether the system in place at the Junior High School was appropriate.  The administration felt that it was at the time.  There had been a discussion about a reduction of another teacher at the Junior High School.  There had been discussions about reducing special education needs.

In response to a question from Shawn Crapo, Mr. Katkin described the information that is provided to the State and how it is used.  There is information on average teacher salaries, numbers of teachers with certain degrees, as well as the cost per pupil.  The average cost per pupil is used by the State to determine the adequacy of the education.  The report to the State Department of Education is about 60 pages long; the information sent to the State Department of Revenue Administration for setting the tax rate is only about 7 pages long.

Mr. Katkin referred to page 45, the revenues and credits, which also affects the tax rate.  Unlike the Town, there are only about 10 sources of revenue.  The largest is tuitions from New Castle.  The number of students from there is dropping from 21 to 14.  Food service sales are projected to be down due to the reduction in the number of students.

Mr. Katkin then referred to the unassigned fund balance that appears on page 45.  He explained how the warrant article early in 2013 had permitted the School Board to retain up to 2.5 percent of the unassigned fund balance.  He explained that there was an unassigned fund balance of $236,408, of which $117,380 was retained in accordance with the warrant article, leaving $119,028 to be returned to the Town pursuant to their agreement.  Editor’s note:  There is an agreement between the schools and the Budget Committee that underspending on tuition must be returned to the taxpayers, rather than used for other purposes.  Mr. Katkin explained that the projection for 2014-2015 has an increase in approximately $81,000 of the fund balance to be used for reducing taxes.  Editor’s note:  The unassigned fund balance is actually projected to decrease in 2014-2015 from the prior year, however, unlike in the prior year, the projection is that none of the fund balance will be set aside in accordance with the 2013 warrant article.  Since the funds set aside are not lost and could be used later, the $81,000 “reduction,†although reducing the tax rate, does not reflect a reduction in expenditures.

Mr. Katkin then explained how the revenues and credits are subtracted from the operating budget to arrive at the District Assessment, which is then divided by the Net Assessed Valuation of the Town of $1.769 billion to arrive at the tax rate.  Each $1,769,621 in expenditures raises the tax rate one dollar.  That is how he arrives at the increase in the tax rate of $.16.  He tends to be conservative.  He would rather overestimate the tax rate than underestimate it, he said.

Selectman Musselman asked whether New Castle pays Rye’s per pupil cost or something different.  Mr. Katkin responded that they pay slightly more than that because of the contract. Mr. Musselman asked how the New Castle tuition is down by only 14 percent, while the students are down from 21 to 14, which is a 33 percent decrease.   Mr. Katkin responded that he is projecting a tuition increase.  He is meeting with New Castle the next day, and will provide them the tuition rate at that time.  Mr. Katkin also explained that the $380,000 that appears on page 45 is estimated, they are actually charging more, as they have the right to do.

Department by department review (61:37 elapsed)

Jim Maheras, Frank Drake and Paul Goldman asked questions about the $0 line items.  Some indicate that they understood that, at a municipal level, that would mean that no money can be spent.  Jim Katkin and Peggy Balboni explained that the Town’s budget is not done at this level of detail, indicating that this restriction applies at the level of what is provided to the State.

Doug Abrams asked how the new health care had affected the budget.  Editor’s note:  He was apparently referring to ObamaCare.  Mr. Katkin stated that there had not yet been an impact.  The School District is meeting the 30 hour per week requirement already for a person to have health insurance.  Collective bargaining agreements have required this.

Mike Schwartz of the School Board is seen arriving on the video at 75:08 elapsed.

Mr. Katkin then explained how the biggest concern was with the tax on Cadillac plans.  That will start in 2018.  Although the charge will be imposed on health insurers, it is anticipated that the charges will be passed along to their customers.  There is no inflation built into the determination of the dollar amount triggering Cadillac plan status.  Every one of the School District’s plans exceeds the level at which the Cadillac plan tax applies.  This will be a concern for the negotiations being entered into next year.  The worst thing would be to run up against this in 2018 and then try to negotiate.

Doug Abrams asked whether the tax would be a percentage.  Mr. Katkin responded that he could not provide a figure.  What was established in 2012 is what will apply, nothing is moving with inflation.

Chris Pollet, Rye Junior High Principal, is seen arriving on the video at 76:11 elapsed.

Mr. Katkin explained that “Cadillac†refers to high cost plans.

Selectman Craig Musselman asked about the discussion in the newspaper regarding merger of the SAU with the Portsmouth School District.   Editor’s note:  An editorial in support of that ran in the Portsmouth Herald on November 18, 2013.

Dr. George Cushing, Superintendent, stated that there had been a discussion between the SAU Board and the Superintendent in Portsmouth.  The attorneys have looked at it.  It is a 2-3 year process at best, as there are many differences.  Their budget starts in December or January, while Rye’s begins in July.  There are different contracts for each Town.  It will be discussed by the SAU Board.  They would lose all of the oversight.

Ray Jarvis asked whether a study had been done, and what the bottom line would be.  It should start out with the assumption that it is a bad idea that must be proven to be a good idea.

Dr. Cushing said that there were a lot more cons than pros.

Ned Paul asked whether there would be cost savings.  Dr. Cushing responded that he did not believe that there would be any savings.  Consolidation was a big issue in Maine, in terms of merging SAUs.  Their attorney said that a ton of money had been made merging the SAUs there, and now they are being broken apart.  In New Hampshire, there are more SAUs than there had been.  Hampton split off.  There was then discussion about how Dr. Cushing had started with the Portsmouth School District when Rye was part of it.

Mr. Katkin described how the number of SAUs had increased from 56 in 1985 to 87 in 2013.  Nowhere were savings found.  Hampton and Barrington have established their own SAUs.  There are some very small districts and a number with two.  Right now Rye is a big fish.  But Portsmouth has more teachers and more valuation.  Rye would be outvoted, he said.

Dr. Cushing stated that he had not received a single call after the editorial ran in the Portsmouth Herald.

(82:56 elapsed)

Frank Drake asked whether the School District was set until 2018 on health care.  Mr. Katkin explained the Cadillac tax and how costs imposed on insurers would trickle down.  Mr. Drake asked whether that would be the only hiccup with ObamaCare.  Mr Katkin responded that it was.  He explained how it was necessary to offer employees working more than 30 hours per week health insurance.  However, it need only be a single plan.  If the employee is not offered insurance, then the employee would have the right to obtain insurance from the exchange.  In New Hampshire, the exchange is coupled with the Federal Government.  If an employer has more than 50 employees, then that employer could be responsible for paying a tax.  There will be some costs.  The value of health insurance will need to be shown on W-2 forms as the government wants to start tracking that now.  Because the collective bargaining agreements are for multiple years, for example an agreement in 2015 may be for three years, the next round of negotiations is critical.

Frank Drake, referred back to Ray Jarvis’ earlier comment about the SAU organization.  He said that oftentimes it is better not to open up an issue.  He suggested that Mr. Jarvis sign up for the Beach Commission.  His perspective would serve the Town well, he said.  Editor’s note:  See in particular the notes of the October 9, 2013 public hearing of the Beach Use Ordinance Committee.  Mr. Drake was an outspoken critic of the Committee’s attempt to propose an ordinance requiring a permit from the Board of Selectmen for commercial use of the Town beaches, including surfboard rentals and surfing lessons.

There was a question about page 60 and whether the rates for the retirement system would remain the same.  Mr. Katkin confirmed that they would and stated that the rates are set by the retirement system biannually, for two years.

There was discussion about debt service.  Doug Abrams asked whether there would be an extra $300,000 once that is paid off in two years.  Mr. Katkin confirmed that there would be.

(90:01 elapsed)

Selectman Musselman asked about the large increase in ESOL costs on page 64.  Ms. Balboni explained that a family with two children had moved into Town.  English was not their primary language and someone had to be hired to work with them.  In response to a question from Ray Jarvis, it was explained that “ESOL†means English Speakers of Other Languages.

There was discussion about the oil price that appears on page 69.  Mr. Katkin stated that $3.49 is budgeted, and the current price is $2.905.  There was a comment that this seemed conservative.  Mr. Katkin explained that new contracts are entered into around July, and is done with the Town.  While the price is known for the 2013-2014 school year, the price for the following year is not, he said.

With regard to page 70, Mr. Katkin stated that the student iPads are not taken home.  They are kept at the school.

With regard to page 76, Shawn Crapo asked whether the schools were moving from iPads to Chrome Books.  Junior High School Principal Chris Pollet responded that both are important.  Chrome Books are good for access, and iPads are good for creation of content.  Chrome Books now cost $250, compared to $1100 for Dell computers five years earlier.

Randy Crapo asked about WiFi limits.  Mr. Pollett responded that they have a subscription with Sonic Wall.  Access is limited for Junior High School students.

There was discussion regarding the insurance.  Mr. Katkin stated that the total appears on one bill.  It is split and half is billed to each school.  This is done for tuition purposes, he said.  Editor’s note:  New Castle pays Rye to educate its seventh and eighth grade students.

It was noted that there was a slight decrease in the middle school budget.

(125:41 elapsed)

The discussion then turned to the high school budget, which starts on page 81.

Ned Paul asked about the tuition.  Mr. Katkin stated that there is more detail on page 113.  Mr. Katkin explained that there are 79 students entering the ninth grade, of which 14 are from New Castle.  They have increased the estimated number of students who will be attending private school from 15 to 20 percent.  That amounts to a reduction of 13 Rye students, leading to an estimate of 52 entering ninth graders.  The 54, 45 and 52 are the existing students in grades 9, 10 and 11, respectively, and that is how the figure is arrived at, he said.  Editor’s note:  The total existing students for these grades, appearing on page 113, is the sum of these three figures, or 151.  There are 65 Rye students in the eighth grade, of which 20 percent, or 13, are projected to attend private schools, leaving 52 students, or a total estimate for the high school of 203 students.

Ray Jarvis asked whether a “fudge factor†was added in.  Mr. Katkin stated that one was not added.  Mr. Jarvis asked whether there would be a crisis if they went over on the number of students.  Peggy Balboni acknowledged that this had occurred before, however there is now the ability to retain funds up to 2.5 percent, and this sort of an overage would qualify as an emergency.  Editor’s note:  In 2013, the voters approved School Warrant Article 4, which implemented a new statute, RSA 198:4-b, II.  Previously, the School District was required to return any surplus to taxpayers the following year, however this warrant article, coupled with this enabling statute, permits up to 2.5 percent of the net assessment to be retained for emergencies, subject to approval by the NH Department of Education, prior to use.  Mr. Katkin stated that the district was in good shape, and that they felt comfortable with what they are doing.  However, it might be a different issue if there were an influx of 10 students.

Mr. Goldman stated that they had finished reviewing the General Fund portion of the budget, which adds up to $12,887,223.  They would now turn to the Food Service portion.

(130:16 elapsed)

Mr. Abrams asked why the Food Service wages were up when two managers had been combined into one position.  Mr. Katkin responded that the position had been created this year after a retirement.  The days were increased by 15 and the hours by one per day.  There was a savings on the health care side of about $13,000 to $14,000 from combining the positions.  Mr. Katkin noted further reductions in certain Food Service wage lines.

Selectman Musselman asked whether the schools were gaining on education delivery or maintaining the status quo on educational quality.  This led to a vague discussion.  Doug Abrams asked how Rye compared to the rest of the state on standardized testing.  Dr. Cushing stated that the new math and core curriculum are driving the process and they are now moving at a faster pace.

Ray Jarvis questioned the relevance.  There is a very high rate of Rye students graduating from Portsmouth High School going on to college.  However, much of the job growth is coming from areas where specialized training is needed, but employers are having trouble finding people to fill those positions.  Dr. Cushing responded by referring to opportunities at Portsmouth High School for trade education and in the automotive department.  Frank Drake interjected that Rye is concentrating on the three R’s.  What they are discussing occurs when the children are 14, 15 or 16.

Steven Borne suggested that, on each transition between schools, there should be feedback on whether the students coming from the prior school are prepared to succeed.  Peggy Balboni stated that she was on a committee that is looking at this data.

Paul Goldman stated that, even if the students go through an excellent program, the voice of the market must still be brought in.

There was further discussion about whether the schools were obtaining all of the grants that might be available.  Mr. Katkin emphasized that it is more difficult for them to obtain money as Rye is an affluent community.

(147:51 elapsed)

After Paul Goldman reviewed the various pages of the budget with the committee, Doug Abrams made a motion to recommend the bottom line of $13,213,843, that is the total for the operating budget appearing on page 85.  Ned Paul seconded the motion.  Before taking a vote, Mr. Goldman asked whether the default budget would need to be reviewed as well.  The consensus was that it did not need to be reviewed.  It was noted that the default budget was $115,000 lower.

Mr. Katkin stated that the default budget includes debt service, expenses which are contractual in nature, and items mandated by federal or state law.  Supplies and materials are not included.  Editor’s note:  See RSA 40:13, IX(b).  Mr. Katkin’s description is not quite correct.  The default budget is the appropriation approved the prior year, adjusted for any changes in debt service or contractual items, obligations previously incurred or mandated by law, or one-time expenditures.  The default budget applies if the voters vote down the proposed budget.  Mr. Katkin stated that, if they have to go to the default budget, either staff or supplies would need to be cut.  Special Education could not be cut, nor could pupil transportation be cut.  Students must be educated in Portsmouth under State law.  Salaries cannot be cut due to the collective bargaining agreements. Only 10-12 percent is controllable, he asserted.

The vote on the recommendation was unanimous.  Mr. Goldman counted 11 yes votes, and noted that all members were present.

Selectman Musselman mentioned the Town Hall expansion process.  Recreation has a capital improvement program request, however Recreation is not certain where their facility might be located.  The Recreation Area has limited ability to provide a facility of that intensity.  There was mention of co-locating a senior center with the schools.  Dr. Cushing noted the absence of available land.  Peggy Balboni noted that only three of the School Board members were present and suggested that a meeting be set up with the entire School Board to discuss the matter.

Mr. Goldman referred to page 35, which contains the actual warrant article containing the budgetary figures.  The motion to recommend that the Budget Committee recommend Article 1 carried unanimously, with 11 votes.

Public input on discrepancy between School and Town health care increases (136:31 elapsed)

Peter Crawford noted that the discussion of health care was one of the most important revelations of the meeting.  He specifically referred to the 2018 ObamaCare requirement and the fact that the School had managed to keep the increase to 4.7 percent.  Editor’s note:  He was referring to the 2018 tax on Cadillac health plans discussed earlier.  However, the Town’s health care costs are up 17 percent, Mr. Crawford said.  He asked whether anyone understood why, and if not, whether an answer could be obtained for the meeting the next night.

Mr. Katkin noted that the hazards are different comparing the Town and the School District.  Maternity is the major issue for the School health plan, although there are some cancer issues.  The insurance experience is spread over 175 people, which includes Rye, Greenland, New Castle, Newington and the SAU office, which is probably a wider base than the Town has.

Selectman Musselman stated that the policies are different.

Ray Jarvis noted that Mr. Crawford was not comparing the policies or the costs, but the increase from the prior year.  The other discussion is thus, to some extent, not relevant.  Selectman Musselman stated that Mr. Crawford is comparing apples to oranges.  Mr. Jarvis disagreed, stating that he is comparing apples to apples.

Selectman Musselman stated that it was a reasonable question, but that comparing costs would be getting into a quagmire.  Mr. Jarvis responded that there should be clear, succinct answers.  Selectman Musselman agreed.

Mr. Goldman stated that the question would probably come up the next night.  He suggested that Selectman Musselman speak to Cyndi Gillespie and determine what she might know.  He agreed to do so and acknowledged that it was a fair question, but reiterated that the determination might be complex.  Mr. Goldman said that it was a good question.

Adjournment (162:00 elapsed)

Whereupon the motion to adjourn carried unanimously and the meeting adjourned at 9:12 p.m.