MSAD #60 Budget Shortfall Information from February 21st Board Meeting

 

2012-2013 Budget Recap

February 21, 2013

 

 

description

unscheduled expenses to be offset by June 30, 2013

curtailment

$185,000

2011-2012 shortfall & audit

$100,000

JMG position un-budgeted

$24,000

substitute account overage

$75,000

ME Energy & Environment (MEEP) un-budgeted cost

$71,000

insurance deductibles

$8,000

anticipated retirement obligation

$75,000

loss of E-rate revenue

$40,000

total

$578,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost-saving measures by January 28:

 

 

description

anticipated savings

supply accounts (frozen)

$15,000

hiring freeze (see 1 below)

$12,000

professional development (frozen) (2)

$25,000

foreign student tuition balance (3)

$20,000

frozen tuition reimbursement 

$55,000

MEEP discontinued (4)

$31,000

approx. savings on 2012 anticipated employee costs due to turnover from 11-12 to 12-13 (5)

200,000

total

$358,000

 

 

1.) did not fill positions that have opened during the year 

2.) only grant-funded or required professional development to occur, no 

    summer work approved

3.) accrued balance in NHS account from previous years

4.) the remaining four year contract with MEEP has been terminated, 

    avoiding $172,000 in future costs.

5.)Savings by cost center are as follows:

 

 

NHS

$105,000

Hussey

$11,000

LES

$56,000

Sp Ed

$24,000

total

$196,000

 

 

* This category does not include any contract negotiations with regard to retroactive pay.

 

 

 

 

Total anticipated shortfall for June 30, 2013:

 

 

unscheduled expenses

$578,000

anticipated savings

-$358,000

total anticipated shortfall

$220,000

 

 

 

Further actions taken to meet the projected shortfall:

 

 

Central Office furlough day

$4,600

Building Admin furlough day

$5,700

close schools - June 24-28 (secretarial, clerical, custodial, and maintenance)

$27,500

reduce ed tech hours to 7 per day

$50,000

spring intramurals canceled*

$4,000

late buses canceled

$4,200

total 

$96,000

 

 

* examples: This does not impact middle and high school spring sports

    but includes elementary student council, drama club, knitting, jump 

  rope, walking club 

 

 

 

 

Other considerations:

 

shut off parking lot lights charge a student parking fee

charge outside groups for facility use searching grant opportunities

teacher furlough days (2 half days) reducing bus runs when possible

critical review of spring stipends eliminate student printing in schools

reducing temperatures in buildings retirement incentive

 

 

 

 

Staff Positions to be Reduced:

 

 

Ed Techs

 

10 positions

$73,906

 

 

 

 

Teachers

 

8 positions

$34,970

 

 

 

 

Administration

 

1.6 positions

$7,349

 

 

 

 

Secretarial/Clerical

 

1 position

$4,112

 

 

Total: ($120,337)

 

 

Monetary Result of All Actions to Date:

 

 

Costs to offset by June 30, 2013

$220,000

Total Result of All Actions to Date

$96,000

$120,337

difference

$3,663

 

 

 

In order for the district to utilize the contractual Reduction in Force clause for elementary band and K-12 Excel, these programs are eliminated/reduced on a permanent basis subject to reconsideration by myself and the Board  during construction of the 2013-2014 budget.  Changes in local condition warrant the elimination of these teaching positions for which the contract was made.  Currently, that would mean the re-establishment of these positions next year would be for the same duration as this year: 162 days.  This number is subject to Board deliberation, and I support the reinstitution of these programs for 2013-2014.

 

The reductions  will impact the way we currently do business, for instance:

 

  • Professional development around the Common Core will stall or cease altogether.
  • Parent communication will likely be impacted, as teachers will have less planning time to respond to parent requests for feedback.
  • Custodial and maintenance work will likely not be able to complete all planned summer work, as facilities will be closed June 24-28.
  • Summer programs will be reduced in duration due to the closing of facilities.
  • Most importantly, programs that inspire some of our students may not exist.

 

Determining specific financial obligation for June 30, 2013 will always be a fluid target.  By example, we are currently concerned with the potential needs of two students whose potential Out-of-District placement considerations could reflect an additional layout of $83,000.  An example of a potential, though unlikely,  positive impact would be if the legislature did not approve the curtailment forwarded to them by the Appropriations Committee.  There are many such examples, and we will continue to take these into account as the situation occurs.

 

I am regretful to put forth any and all of these actions.  While central office and building administration will work to analyze and honor all contractual guidelines, we recognize that each employee, each planned activity, each program is in place for a reason: students benefit.  The morale of the entire district will be impacted, and there are many hard, personal conversations that have happened and will continue to occur.  While these personnel reductions will be difficult to explain to parents and children, it will also be extremely hard for the impacted staff members to maintain a balance in their lives while facing significant financial and professional loss.  We must be ready to support all as we work through this situation.  

 

Our district is not alone in this financial scenario.  In conversation with Suzan Beaudoin, School Funding and Governance Supervisor at the Maine Department of Education, she noted she has not seen financial situations across the state as bad as this since 1991.  Regardless of the difficult nature of the actions facing Maine schools, we will continue to work to offer the most comprehensive, quality programming possible within the context of the fiscal reality.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013-2014 Outlook

 

In order to avoid a similar impact to the three communities for 2012-2013 (between 6 and 15% increases), our district needs to account for the following anticipated costs:

 

 

“Post Curtailment”

$184,800

2.65% Governor’s proposed district contribution to state retirement

$397,500

anticipate 10% insurance increase based on “actual claims history”

$400,000

potential hr/sal/ben increases

$530,000

Contingency Fund

$215,000

8% federal grant sequestration

$130,000

bussing (6)

$85,000

Sp Ed OOD increase

$83,000

2014 Retirement Obligation

$70,000

Heating Oil

$53,000

JMG/SRTC/library software

$41,000

Total:

$2,189,300

 

 

 

 

 

 

 

 

 

Reductions anticipated for 2014: 

 

 

cost sharing five administrative positions with neighboring districts

$100,000

bus garage loan paid off 

$105,000

increased core class sizes

$500,000

Examination of Special Education services and costs

$50,000

Reduction in Force brought forward

$423,000

total

$1,178,000

 

 

Total Projected Offset:

 

 

Anticipated Costs

$2,189,300

Anticipated Reductions

$1,178,000

total:

$1,011,300

 

 

 

This number does not take into account the percent increase/decrease from 2012-2013 to 2013-2014 budgets.