Deficit is already on the horizon for School Dept.
Published on September 16th, 1998
STONEHAM, MA - The school year has just begun and already the School Department is projecting a sizable deficit in the budget.
School Superintendent Joseph Connelly advised the School Committee on Thursday night of what the initial budget projections show for the end of the fiscal years-a $180,000 shortage.
Connelly explained that several year-end projections will be made throughout the year, where the department will attempt to forecast the status of the budget through June 30, 1999. "Hopefully by April, we'll be on the mark," Connelly said and cautioned the committee to remember that September's projections were the most preliminary of all.
Business Manager Donald Simpson advised that a three-year history of actual spending is used to compare with budget projections and year-to-date actual spending. The resulting inconsistencies are investigated and variances are then projected.
Some of the major problems are faced in the areas of planned maintenance, heat and utilities, health insurance and professional development.
In planned maintenance, a $10,000 deficit is projected despite a commitment to doing only what is absolutely necessary regarding maintenance to the elementary schools, since the rebuilding project begins this fall with the first of the four schools to be addressed.
A mild winter is on the School Department's wish list for this year since it projects a $50,000 deficit in heat and utilities. The budgeted figure for 1999 of $105,000 is far lower than actual spending for the past three years. 1996, 1997 and 1998 year end actuals totaled $151,969, $182,379, and $152,321 respectively.
Simpson stated that the low number for this year "was a function of knowing it had to add up...We took a risk."
A $40,000 deficit is projected in the area of health insurance. The budgeted figure of $912,000, according to Simpson, was based on 1998 rates plus a 5 per cent increase, along with a projected 6 to 8 new enrollees. The large deficit, he reported is due, in part to unanticipated prior year adjustments, a larger number of new enrollees and a number of switches by current enrollees to family plans from individual plans.
The area documented by former Interim School Superinten-dent Robert Barbarisi as being a risk, is the budget for professional development. With past actuals totaling $56,495, $59,026 and $79,247 for 1996, 1997 and 1998 respectively, the budgeted figure for this year was a low $48,000.
Simpson explained that much of this area is contractual and is dictated by the terms of the contract reached between the School Committee and the teachers association.
"We're watching it very closely," Connelly assured.
Connelly also stated that the committee should bear in mind that the numbers were only preliminary but is something it should be aware of. In addition, he stated that the town's Finance Board and Board of Selectmen would also be made aware of the deficit so that there will be no surprises next spring.
"I'm confident we'll get the support of the administration," he said. He also advised that an immediate, partial moratorium on purchases has been put into effect, with all discretionary item purchases put on hold.
Assistant Superintendent Dr. Elizabeth Keroack said that the School Department is currently reviewing major grant applications to take advantage of additional revenue available through state and federal sources.
Applying for the grants requires a great team effort, stated Keroack, since each grant has its own set of rules and requirements. An estimated $300,000-$400,000 is available through grants, she said.
"These grants allows us to do some real interesting things," Keroack said.
In other School Committee news, the issue of possible purchase of the Mann Chemical property came up with the committee voting unanimously to co-sponsor an article with the Finance Board and Board of Selectmen to acquire the property.
Despite currently being under a sales agreement, the property is sought in order to use as community open space, parking and to avoid a potentially hazardous traffic area beside the Middle School.
According to Connelly, a site plan hearing with the new owners of the property is scheduled for October 20. Their plan is to build a four-story office building with up to 165 parking spaces. The area is a congested one already with traffic generated from the abutting Middle School.
Town Administrator Jeffrey Nutting requested through Connelly that the School Committee make their decision on Thursday night so that an appraisal of the property could be done in time for Town Meeting on October 26.
Connelly reported that a previous meeting with the new owners to review their plans was very productive.
"The current owners' preference would be to not sell but they understand the school department's interest in the property...They would prefer to get this resolved," stated Connelly.
Hancock Street resident Joan Kaiser-Kerrigan questioned the committee on what was different now that would warrant revisiting the issue brought up previously at Town Meeting and defeated.
Committee Chairman Stephen Gucciardi stated that two new pieces of information were indications to the committee that this would be a good move. First, he stated, the site behind the Middle School has officially been approved by the state for building the new Central School. Secondly, the committee now knows that the owners plan to construct a four-story office building at the site which will increase traffic and safety concerns in the already congested area.
Another resident challenged whether or not this made sense since the office building would bring in needed tax revenue.
"This board will give it to the voters," stated Committee member Jeanne Craigie. "It's worth a shot."
The unanimous vote was made with the condition that money to purchase the site would not come from the school building project.
Subscribe and get Home Delivery of The Independent
Save 36% off the newstand price — that's like 18 FREE issues!