Schools tinker with budget
Published on March 17th, 2004
STONEHAM, MA - The School Committee may be considering a more palatable menu of budget cuts as it ponders the direction the Board of Selectmen might take regarding the town's financial future.
While its official action actually raised the FY05 budget projection by $104,000 at last Thursday's meeting, due to Town Administrator David Berry's confirmation that health insurance costs will increase by 11.3 percent and not the 6 percent previously thought, bringing next year's budget to $23,096,155, it also looked at what the budget gap would be if the town passes a proposition 2 1/2 override.
The Board of Selectmen voted to support a School Committee budget for next year in the amount of only $20,946,155. In light of School Committee action on draft 2, the school department now has to consider $2,150,000 in cuts from what it believes is needed to run the schools next year.
"This is not the budget the School Committee would want to support," Assistant Superintendent Dr. Joseph Casey said of the town's budget number.
Yet if the Board of Selectmen opts to ask the townspeople to pass an override to address the town's money woes, the amount of cuts then would likely range between $650,000 and $850,000.
According to School Superintendent Dr. Joseph Connelly, the Selectmen discussed a town wide budget gap of $4.3 million for next year. They also talked about a partial override, somewhere between 2.7 and 3.1 percent, he said.
"Until we know if there will be an override, and in fairness the talk has been that everyone anticipates there will be an override, but until we know the exact amount, we won't know what our share of the cuts will be," Connelly said.
If a partial override goes through at 2.7 percent, the school department will have to make $850,000 in permanent cuts. An override of 2.9 percent would require cuts of $750,000 and a 3.1 percent override would necessitate $650,000 in cuts. These cuts would come from the list of $2 million potential cuts previously identified.
On the $2 million list of potential cuts are about 54 staff positions including high school teachers, advisors and coaches, Middle School teachers, administrator and secretary, and elementary level teachers, teaching specialists, teacher aids, and technology aids. In addition, system wide reductions are noted as one administrator in the Central Office, 2 custodians, and 1.4 program supervisors. The addition of $100,000 in health insurance expenses may yield another 4 positions.
Connelly was quick to point out, however, that the School Department does not blame the Selectmen for the figures. The real culprit, he said, is the drop off in revenues from the state, as well as uncontrollable costs, such as health insurance.
"Many towns are facing these difficulties."
FY 2004 Year End Projections
Administrator of School Finance Greg Zammuto had mostly good news with regard to the school department's current budget position by year end.
Following detailed evaluation of the current budget, Zammuto presented to the School Committee a look at where the budget should stand on June 30. He expects to give the committee such updates on a monthly basis.
Based on projections of March 8, Zammuto reported that the school budget should end up in the black with a surplus of $67,897. His analysis took a look at major accounts which showed mostly positive positions, but he cautioned that things could change as easily as the weather.
"We recommend the Finance Board be notified that the School Committee FY04 budget appears to be in a favorable position with the caution that heating costs for the remainder of the heating season could exceed the March/April projected estimates," Zammuto said. Likewise, electrical costs for May and June could exceed estimates and the maintenance and repair account could face unanticipated hits.
Many of the revolving accounts show surpluses at year's end. The after school child care program is expected to yield a profit of $33,219, and the preschool program is expected to end with $5,233 extra. The full day Kindergarten program should bring in a profit of $19,098, helped in large part by a grant of $13,000 secured by the hard work of Casey and South School Principal Nick Leonardos. The building rental and athletic revolving accounts are expected to have balances of $35,011 and $26,630 respectively.
The instrumental music account was a new account this year and looks to fall short by year end by about $4600. User fees would likely have to be raised next year to continue the program.
While the transportation account looks to yield a $2,374 surplus, this is not enough to keep a price hike minimal for next year. Despite the fact that the low bid for the next 5-year contract looks like the cost for two buses will remain stable for the next three years, the money available at the beginning of the current year will not be there for next year to help offset the cost. Last year's beginning balance for this account was about $13,000. Another $17,000 was appropriated from the budget. These monies will not be available and to keep two buses on the road, user fees look as though they could increase from the current level of $400 per year, per student to $700.
"We're losing these pockets of money we've had in the past to keep this bus program going," Connelly said. Notices of the potential increase are expected to go out to families to gauge interest for next year's program.
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