RCL Notes on School Budget all day workshop

1:41 elapsed.  SAU 50 Business Manager Jim Katkin presents overview of budget.  Projected RJH enrollment for 2016-2017 is 159, down from 216 in 2010-2011.  Projected RES enrollment is 280 in 2016-2017, down from 329 in 2010-2011.  Live births in Rye have decreased to 24 in 2014, the lowest in 20 years, and down from 37 in 2011.  RJH could be down to 140 students in 3 years.  Nine percent of fifth graders are not continuing at RJH.

Budget estimates 175 students at Portsmouth High School (“PHS”), down from 198 budgeted for 2015-2016, and 188 actual.  The estimate assumes 5 of 50 (excluding 5 from Newcastle) Rye eighth graders continue to PHS.  Historically-derived progression ratio is that less than 70 percent continue to PHS.  Because of estimated PHS tuition increase from $15,735 to $16,606, budget would be up over $300,000 if not for projected PHS enrollment decline.

Declining enrollment means that cost per pupil is up 19.23 percent over three years, despite much lower increases in total spending.  The cost per student at RJH is approximately $24,000 vs. $16,000 at Portsmouth Middle School.

24:35 elapsed.  Continuing, Mr. Katkin states that the proposed budget for 2016-2017 is $13,465,196, down .43% from 2015-2016.  However, as the support staff contract is up for renewal, increases due to any new Collective Bargaining Agreement (“CBA”) will be a separate warrant article and is not included in this figure.

Two budget options are proposed, one at a 1.5% increase and one at 0 percent.  To get to 0 percent, two rather than one classroom teachers would need to be cut, saving $99,000, and a 30 percent reduction in an administrative staff member would be needed, saving $138,459.  To get to 1.5 percent, one reduction at RJH would be needed.

Mr. Katkin then went through district-wide, RES and RJH budgets.  Salaries, benefits, PHS tuition and special education are 89% of the total.

44:30 elapsed.  Staff requests for increases above and beyond budget include a RJH special education teacher (a $.055 impact on the tax rate) and a RES math specialist increased from 80% to full-time, an increase of $16,371, net of the elimination of .5 of a para educator, or a $.009 impact on the tax rate).  Total impact of both requests would be $115,000.

Proposed special ed. budget would be up $172,000, excluding the above request.

51:00 elapsed.  Current PHS tuition is $15,755/student vs. $15,653 budgeted.  The $16,606 budgeted tuition rate is up $1783 over the past two years.  Mr. Katkin indicated that this was because declining enrollment at PHS is driving up the per pupil cost.  The 188 PHS students in 2015-2016 vs. 197 budgeted will mean $145,000 to $150,000 returned to taxpayers as an agreement with the budget committee prohibits the use of the surplus for other items.  Mr. Katkin stated that he is not nervous with the assumption that 5 students of 50 graduating Rye eighth graders will continue to private school, but is concerned that other grades may increase.  For some reason there have been increases in seniors in the past.  If a 70 percent continuation to PHS is assumed (based on 68 percent progression ratio from model), that would drop the PHS budgeted students by another ten students.

75:00 elapsed.  A resident suggested that the 2.5% retainage fund from past surpluses could be used if certain line items, such as PHS tuition, are over budget.  Mr. Katkin indicates that the School Board, the Budget Committee, and the State Dept. of Education would all need to agree to this.  He acknowledges that there is several hundred thousand dollars in this fund.

78:56 elapsed.   Superintendent Sal Petralia states that New Castle is considering sending its students to Portsmouth Middle School, rather than RJH (or at least as an option to parents) due to the spiking RJH tuition resulting from the declining enrollment.  Portsmouth Middle School tuition would be about $16,000 according to Mr. Katkin.  Current and former New Castle parents are being surveyed and a decision may be made in January or February of 2016, effective as early as the 2016-2017 school year.  The loss would be three current New Castle sixth graders plus any withdrawing seventh graders (Scott Marion indicated that they would likely stay at RJH to avoid disruption).  Even the three students at $24,000 to $25,000 would lead to the loss of revenues equal to the cost of a mid-range teacher.

90:40 elapsed.  PHS is looking at moving the start time later to 8:30 a.m.  Surveys have just gone out.  Rye would need to provide two more buses if this happens.  Estimated cost $25,000 to $70,000.  There would be no way to avoid as existing bus contract is based on the numbers of buses and  runs.

105:32 elapsed.  Break.

122:20 elapsed.  Back in session.  RJH principal Chris Pollett states that sixth and seventh grade class sizes are 50 and 53.  Superintendent Petralia notes that the public will ask about the decline of 35-43 students and that he is in favor of the zero percent budget.  Board Member Scott Marion cautions that the long-term academic offerings need to be considered.  Board Member Kevin Brandon indicates that the core math, english and science instruction is not the first place to look for savings.  Nobody disagrees with Mr. Petralia’s comment that the current team approach is not sustainable, given the declining enrollment.  Board Member Mike Moody expresses concern about parents showing up at the next meeting to oppose.  Assistant Superintendent Kelli Killen states that they already have scenarios for a reduction of two staff, would need to readdress if it turns out to be a reduction of one.  Mr. Pollett states that the pupil to teacher ratio would be 18-21, depending on the grade.

140:25 elapsed.  Non-public session.

0:55 elapsed.  Special Education Coordinator Meg Louney states that Special Ed. enrollment budget is up by 14 students despite decline in overall enrollment.  Budget is for 93.  The budget is for 3 Special Ed. teachers at RES and 2 at RJH.  Students in Special Ed.:  Pre-school to grade 5 is 49-50, grades 6-8 is 23, and grades 9-12 (plus “transition year”) is 21.  Ms. Louney provided breakdown by individual grade.  Students in Special Ed. are now 15.8 percent vs. 12-14 percent nationally, up from 10 percent historically.  Ms. Louney stated that Special Ed. students have varied between 82 and 92 the past 10 years.

24:00 elapsed.  Mr. Katkin suggests the addition of a clerical employee to supplant the five Special Ed. teachers, rather than hiring an additional teacher.  This would reduce the cost from $40 per hour to $15 per hour for the mundane work.  Board Member Scott Marion suggests a 30 hour per week clerical employee and a half-time Special Ed. teacher.  RJH Principal Chris Pollett indicates that a time-consuming student may be coming back but but the staff denies that the proposed increase is driven entirely by that one student.

42:24 elapsed.  Lunch break.  Board Member Kevin Brandon needs to leave.  The decision on the Special Ed. teacher is deferred until the meeting on Nov. 18.

43:10 elapsed.  The case for the proposed math speciaiist hours increase from 80 to 100 percent is presented by RES principal Suzanne Lull.  Half of a para professional would be cut to compensate, but the net increase would still be $16,371.

52:10 elapsed.  Board Chairman Scott Marion notes that the Board has, as yet, failed to make any decisions.  A straw vote on the math position indicates support by Board Members Scott Marion and Kate Hillman, but Member Mike Moody indicates that he is uncomfortable voting on without Member Kevin Brandon present.  Board Member Jeanne Moynahan’s position was unclear, but she had stated that she was ready to vote.

55:30 elapsed.  RJH Principal Chris Pollett raises the issue of biodegradable lunch trays.  RES Principal hands over a stack of petition signatures from parents and students.  Business Manager Jim Katkin states that the lunch budget is already in a $30,000 deficit position and that he does not support an increase in the budget to add the more expensive trays.  While lunch prices could be increased, that would decrease the percent purchasing school lunches.  The meal cost is $4.00 vs. the $2.50 or $2.75 charged.  Suzanne Lull states that the biodegradable trays would be an extra $.10.

Chairman Scott Marion stated that “everyone” loses money on lunch.  Mr. Katkin stated that, in the past 5 years, the District has broken even 3-4 years.  Costs are going up because the Board insisted that fresh vegetables be sourced locally, rather than from Boston.

RJH Principal Pollett indicates that there is a group planning to seek further “green” programs, including bottles.  A very good lunch is provided, with a salad bar.

Board Member Mike Moody asked whether reusable trays could be used.  Mr. Katkin disagrees with Ms. Lull’s assertion that the septic system would not handle it, stating that he personally was involved in the design of the school’s systems back in the 1990s.  Each school has a 2500 gallon tank.  The trays could be washed for an extra hour of labor a day, if that, he said.  The dishwashers would need to be reactivated and new trays would need to be purchased, he said.

Ten years ago, there were plastic trays, Mr. Katkin said.  However, a committee determined that styrofoam trays would save money.  These were recycled for only 6-8 months.  That stopped, and they were thrown away, after the organization picking them up became unwilling to do so.  He cautioned that, if the price is increased from $2.75 to $3.00, a family with two kids in the schools would have to pay $30 per week.  A lot of parents would decide that peanut butter and jelly sandwiches would be a lot cheaper.  Rye has a lot of students on free and reduced lunch prices.  Even more would be, but many are too proud to request this.

The motion to add $2100 to the budget for biodegradable trays, and to increase lunch prices by $.25 carried unanimously.

64:55 elapsed.   The discussion returned to the additional Special Ed. teacher.  No vote was taken.

80:50 elapsed.   It was indicated that there had been much discussion about RJH, but no decision yet.   Kelli Killen stated that they would need to go back to the drawing board if only one was to be cut.  It worked out evenly with two.  RJH Principal Chris Pollett stated that he was in favor of cutting only one at the current time.  He spoke about a class size of 24-25 and likely public discussion relating to this.

86:03 elapsed.  Chairman Scott Marion asked whether the reduction should be made through early retirement offers.  Mr. Katkin stated that they had been doing that every 2-3 years.  Board Member Mike Moody stated that there is a danger that teachers will wait until such offers are made.  In the past offers have been $18,000 to $22,000, on top of the $18,000 already paid upon retirement.

The discussion then led to the teacher who would be laid off if there is no early retirement program.  Superintendent Petralia indicated that this was likely to be a highly effective RES teacher.

RES Principal Suzanne Lull stated that one of the RES teachers who is currently half-time may be coming back full-time, which would necessitate a reduction in force, particularly if her proposed math position increase is not provided for.  That led to discussion about whether the collective bargaining agreement would permit a teacher, who had temporarily reduced her hours, to force a layoff to make room for a return to full-time status.  Mr. Katkin argued that this was required by the collective bargaining agreement, while Ms. Lull indicated that there was nothing in writing.

102:12 elapsed.  A non-public was held to discuss the specifics of retirement program offers.

108:31 elapsed.  Returning after the non-public, the agenda for the following Wednesday’s meeting was discussed.

112:45 elapsed.  Adjournment.