Presented By: Dr. David P. Sklarz, Superintendent

Guiding Principles Maintain commitment to class size guidelines Maintain support for programs that show demonstrable results Support for programs and services that are part of the branding of

Marlborough Elementary School Reduction in force is best accomplished through retirements or resignations Any reductions should always be furthest from classroom whenever possible New programs will be considered after completing a feasibility study and

community input Benchmarking with comparable high-performing schools to guide decisions Efforts to find additional funding sources through grants should be on-going All efforts to extend shared services with Town and Regional District No. 8 Be fiscally responsive to all constituents in decision making Work closely with the Board of Finance and Selectmen in the budget

development process

BUDGET ASSUMPTIONS 2020-2021 That student enrollment is projected to be approximately 439 in grades PreK-6 as

a result of smaller entering kindergarten enrollments That staffing will be adjusted to be consistent with declining enrollments That there will be a commitment to adopted class size guidelines That there has been an increase in the needs of special education students - one

additional out-of-district placement That there will be ten (10 ) out of twelve (12 ) students attending magnet schools

for whom the district would pay tuition That the teacher supplies will be $300 per teacher That the budget will reflect the State revised education budget and any changes

in ECS funding for 2020-21 That the budget will include possible reinstatement of any mid-year budget cuts

in the 2019-20 budget That there will be no additional federal funds to support local funding

BUDGET ASSUMPTIONS 2020-2021 cont’d That all bargaining units will be on the HSA High Deductible Health Plan That the use of MECCA rental fees will be available to continue implementation of

the building improvement plan That any fund balance will be used to fund items from Board/Administration

priority list of needs That there may be contractual increases in the following accounts: salaries, health

benefits, utilities, transportation, heating oil, diesel fuel and gasoline, etc. That there would be three (3) kindergarten classes based on NESDEC projected

kindergarten enrollment of 52 students or four (4) kindergarten classes based on 2019-20 experience

That budget will reflect increase cost of building maintenance services and support That BOE legal costs will remain the same to reflect that there is only one contract

to negotiate That the budget will contain a Capital Improvement Plan budget for the Board of

Finance

PRE-BUDGET ACTION STEPS Projected enrollment Calculate number of sections (class size guidelines) Determine special education requirements IEP’s/out-of-district

placement Determine staffing needs Review increases in all contractual obligations, e.g. salary, benefits,

services Review requests of needs and wants by departments and grade levels

with Principal and Assistant Principal Review and prioritize new initiatives, mandates, SDE and new

contracts requirements, e.g. TEAM Board input after pre-budget overview Develop budget and begin line item review

HISTORICAL ENROLLMENT BY GRADE

* Estimate

Birth Year

Births School Year PK K 1 2 3 4 5 6 PK-6

2004 71 2009-10 21 82 99 89 101 97 92 87 668

2005 68 2010-11 22 85 84 102 90 105 98 87 673

2006 81 2011-12 17 91 85 79 101 95 104 100 672

2007 66 2012-13 21 72 91 92 78 103 91 91 639

2008 61 2013-14 17 55 77 96 97 77 101 84 604

2009 61 2014-15 24 60 60 83 102 93 78 99 599

2010 46 2015-16 20 66 62 63 81 99 93 72 556

2011 32 2016-17 18 61 64 62 62 82 94 91 534

2012 47 2017-18 23 46 56 68 66 63 80 89 491

2013 41 2018-19 22 45 46 55 69 65 65 82 449

2014 49 2019-20 22 70 52 47 59 67 68 62 447

2015 43 2020-21 (Projected)

22 52* 71 53 49 58 68 66 439

Grade Current Grade Total

# Teachers Avg. Class Size

Projected Grade Total

# Teachers Avg. Class Size

Diff.

PK 22 1 11.0 22 1 11.0 -

K 70 4 17.5 52 4*/3 13.0/17.3 -

1 52 3 17.3 71 4 17.8 +1

2 47 3 15.6 53 3 17.7 -

3 59 3 19.6 49 3 16.3 -

4 67 3 22.3 58 3 19.3 -

5 68 3 22.7 68 3 22.6 -

6 62 3 20.7 66 3 22.0 -

TOTAL 447 23 439 24/23 -

PK-6 ENROLLMENTS

CURRENT 2019 AND PROJECTED 2020

Class Size Guidelines Grades K-1 15-18 students Grades 2-4 18-23 students Grades 5-6 20-25 students

* Area of Concern

ENROLLMENT PROJECTIONS BY GRADE

* Estimate

Birth Year

Births School Year

PK K 1 2 3 4 5 6 PK-6

2014 49 2019-20 22 70 52 47 59 67 68 62 447

2015 43 2020-21 22 52* 71 53 49 58 68 66 439

2016 52 2021-22 23 62 53 73 55 49 59 66 440

2017 49 (prov.) 2022-23 23 59 63 54 76 54 49 58 436

2018 49 (prov.) 2023-24 24 59 60 64 56 75 55 48 441

2019 48 (est.) 2024-25 24 58 60 61 67 55 76 54 455

2020 48 (est.) 2025-26 25 58 59 61 63 66 56 74 462

2021 49 (est.) 2026-27 25 59 59 60 63 62 67 55 450

2022 49 (est.) 2027-28 26 59 60 60 62 62 63 65 457

2023 49 (est.) 2028-29 26 59 60 61 62 61 63 61 453

2024 49 Est.) 2029-30 27 58 61 61 63 61 62 61 453

CONTRACTUAL OBLIGATIONS Salaries Benefits

Electricity, sewer, water Student Transportation Magnet School Tuition

Diesel, Gasoline, Propane & Heating Oil

Represents 91% of Total Budget

Percent of FY 2020-21 Proposed Budget…………………………………..68.0% Average general wage increase in MES teacher salaries 2020-21…2.0%

SALARIES

Percent of FY 2020-21 Proposed Budget……………………………………14.6% Average % increase in health insurances over last 5 years………… 4.24% Highest increase was 8.0% and lowest increase was -3.4% Estimate is a 5.8% increase for 2020-21

BENEFITS

5 YEAR SALARY ACCOUNT HISTORY ASSUMING A 2.5%

$5,307,399

$5,440,084

$5,576,086

$5,715.488

5,000,000

5,100,000

5,200,000

5,300,000

5,400,000

5,500,000

5,600,000

5,700,000

5,800,000

5,900,000

2016-17 2017-18 2018-19 2019-20 2020-21

Total Salary Account $5,858,375

ACTUAL 6 YEAR SALARY ACCOUNT HISTORY

$5,039,727 $5,069,283

$5,105,426

$5,011,884

$5,032,715

4,900,000

4,950,000

5,000,000

5,050,000

5,100,000

5,150,000

5,200,000

5,250,000

5,300,000

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Total Salary Account

$5,261,513

FIVE YEAR AVERAGE % INCREASE IN HEALTH INSURANCE RATES

2015-16 2.98% 2016-17 -3.4% 2017-18 6.8% 2018-19 8.0% 2019-20 6.8%

5 yr. average 4.24%

2020-21 increase 5.8% (Estimated in Region 8 Insurance Consortium as of 2/20/2020)

HIGH DEDUCTIBLE HEALTH INSURANCE AND PREMIUM COST SHARE FOR TEACHERS

Fiscal Year Employee Responsible Deductible Amount % Premium Cost Share

2014-15 $1,500 individual/$3,000 two-person/family 6%

2015-16 $1,500 individual/$3,000 two-person/family 9%

2016-17 $2,000 individual/$4,000 two-person/family* 9%

2017-18 $2,000 individual/$4,000 two-person/family 10%

2018-19 $2,000 individual/$4,000 two-person/family 11%

2019-20 $2,000 individual/$4,000 two-person/family Once deductible is met for prescriptions, there

shall be a $5/25/40 copay per prescription

11.5%

2020-21 $2,000 individual/$4,000 two-person/family 12%

* Increased deductible amounts resulted in approximately $30,000 savings

SIX YEAR BUDGET INCREASE/DECREASE FISCAL YEAR MARLBOROUGH RSD 8 STATE*

2015-16 1.71% 3.49% 2.18%

2016-17 -2.34% 3.56% 1.91%

2017-18 0.89% 0.95% 1.43%

2018-19 0.10% 1.75% -%

2019-20 1.6% 2.86% -

2020-21 4.25% % -

Average 1.03% % %

* Data from CAPSS based on number of school districts reporting

Marlborough Per Pupil Expenditure...................$16,153 Hebron Per Pupil Expenditure.............................$17,591 Andover Per Pupil Expenditure...........................$20,512 State Average Per Pupil Expenditure………………..$18,791

PER PUPIL EXPENDITURE 2018-19

PERMANENT BUDGET REDUCTIONS SINCE DECLINING ENROLLMENTS Budget Reduction Annual Savings

8.5 classroom teachers (from 31.5 in 2011-12 to 23.8 in 2018-19) $650,000

0.5 FTE Spanish teacher $ 43,218

0.5 FTE Superintendent $ 80,000

0.5 FTE Special Education Coordinator $ 45,000

1.0 FTE Office Receptionist $ 15,000

0.5 FTE Custodian $ 12,000

Replacement of Custodian Supervisor position with Custodian $ 17,000

0.4 FTE Special Education teacher $ 49,000

0.5 FTE Social Worker $ 40,500

0.2 FTE Pre-school teacher $ 17,500

1 bus going from 10 to 9 buses $ 22,000

0.2 Reading Consultant $ 19,955

1.0 FTE classroom teacher (Salary & Benefits) $ 99,273

Finance Position $ 9,466

SAVINGS $1,119,912

IDENTIFIED ALTERNATIVE FUNDING SOURCES AND COST SAVINGS

Technology Grant Security Grant REAP Grant

Rental fees to support Building Improvement Plan PTO/MYAL Financial Support Title I,II & IV Federal Grants Medicaid Reimbursement

Excess Cost Reimbursement for special education Shared Services Outsourcing

EFFECTIVE USE OF ALTERNATIVE FUNDS TO REDUCE GENERAL OPERATING BUDGET

ALTERNATIVE FUNDING SOURCE EXAMPLES

School Safety Grants Cameras/Outside intercoms

MECCA Rental Fees Classroom air conditioning units Technology infrastructure Community Room Walls Painted & Other Painting Community Room Stage Refinished Sixth grade furniture replacement Replace air conditioning system in Electrical Room Refinish gym floor

Title IV Grant PASS/Clubs/Homework Club Programs

REAP Grant On-line technology/applications iPads/Chromebooks/Elmo Projectors LLI Reading Materials

Medicaid reimbursement Classroom air conditioning units

Special Education Excess Cost Reimbursement

% reimbursement for an in-district student and two out-of-district placements

CREATIVE COST SAVING MEASURES Insurance Consortium and self-funding Outsource BCBA/School Psychologist services to Hebron Bus contract cooperative bid with Andover, Hebron and RHAM Reduce legal costs through staggering contract negotiations Share custodial weekend overtime costs with long-term users Maintenance support alternative to hiring new staff Lunch program funds MECCA rental fees Business and Finance operation efficiencies Cooperative bidding on fuel/oil New lighting and cost savings over time Reduce reading staff by 0.2 FTE

BASIC NEEDS BUDGET 2020-2021 Provides need-based budget Moves current 2019-20 staffing forward with actual contractual 2020-21 funding Fulfills all contractual obligations, e.g. salary, benefits, services, bus, fuel, electricity, etc. to

2020-21 amounts Effective use of alternative funding sources Maintains current health benefits with projected increase at 5.8% as of 2/20/20 Bus contract increase of 2.9% Does not include any new initiatives Maintains supplies, materials, equipment line items by adding back one-time reductions or

increases based on 1.8% Consumer Price Index Funds support for building maintenance Increase magnet school tuitions to reflect actual cost increases Meet state guidelines for minimum of effort Capital Improvement Plan to Board of Finance Funds for second out-of-district placement

BASIC NEEDS Original Request

BASIC NEEDS Superintendent Revised

$7,612,985 $7,555,289 $202,606 $57,696

2.73% 1.96% Includes:

• 3 Kindergarten teachers • 19.5 Paraeducators • 1 Out-of-district placement • Health insurance increase at 7.5%

Includes: • 18.5 Paraeducators • 1 Out-of-district placement • Health insurance increase at 7.5% • Reduced Facilities Contingency • Reduced OT/PT Services

SUPERINTENDENT’S BUDGET ADJUSTMENTS

BOE INITIAL PROPOSAL January 23, 2020

BOE ADOPTED BUDGET February 27, 2020

$7,743,286 $7,725,215 $332,907 $314,836 4.49% 4.25%

Includes: • Superintendent’s base budget • One additional classroom teacher • One additional outplacement • 19.5 Paraeducators • Health insurance increase at 7.5%

Includes: • Superintendent’s base budget • One additional classroom teacher • One additional outplacement • 18.5 Paraeducators • Health insurance increase at 5.8%

BOARD OF EDUCATION BUDGET ADJUSTMENTS

FY 2020-21 BUDGET

0%10%20%30%40%50%60%70%80%90%

100%

Salaries & Benefits100/200's

Purchased Services300/400/500's

Supplies/Materials600's

Capital Outlay/Other700/800's

$6,389,193 or 82.7%

$1,081,428 or 14.0% $222,150 or 2.9%

$32,445 or 0.4%

FY 2020-21 Budget Proposal Adopted Budget

2019-20 Proposed Budget

2020-21 %

Change

111 PERSONNEL - CERTIFIED STAFF Contractual salaries for administrators, teachers and other support activities

$4,041,220 $4,151,377 2.73%

112 PERSONNEL – NON-CERTIFIED STAFF Salaries for office and technology support, paraprofessionals, nurse and custodians

$ 991,495 $1,110,136 11.97%

200 EMPLOYEE BENEFITS Group health insurances, social security, pensions, workers comp, unemployment

$1,096,407 $1,127,680 2.85%

300 PURCHASED PROFESSIONAL SERVICES AHM Youth Services, legal and audit fees, consultants, occupational/physical therapy

$ 237,940 $171,959 -27.73%

400 PURCHASED PROPERTY SERVICE Electricity, sewer fees, contracts for facility maintenance

$ 300,000 $287,335 -4.22%

FY 2020-21 BUDGET PROPOSAL

Adopted Budget 2019-20

Proposed Budget 2020-21

% Change

500 OTHER PURCHASED SERVICES Bus contract, liability insurance, magnet school tuition, phone/email, postage

$ 496,996 $622,134 25.18%

600 SUPPLIES AND MATERIALS Curriculum/custodial/office supplies, textbooks, heating oil, diesel/gasoline

$ 214,689 $222,150 3.48%

700 CAPITAL OUTLAY New or replacement furniture/equipment

$ 11,740 $13,200 12.44%

800 OTHER OBJECTS Membership fees, meetings/conferences

$ 19,892 $19,245 -3.25%

TOTAL $7,410,379 $7,725,215 4.25%

BUDGET SUMMARY Current FY 2019-20 Budget $7,410,379

Proposed FY 2020-21 Budget $7,725,215 (1% = $77,252) Increase $314,836 % Impact 4.25%

INVESTING IN MES (Value for the Dollar)

Quality of teachers and support staff Class size average: 17.5/18.0 Outstanding parent satisfaction and support as demonstrated in

school climate survey Fine and performing arts: Band - students and Chorus – students

and award-winning Art program State-of-the-art Library/Media Center, Community Room,

Gymnasium, Music and Art Rooms Spanish grades K-6 Full day kindergarten for all children

INVESTING IN MES cont’d (Value for the Dollar)

• Enrichment opportunities: Future Problem Solvers, Advanced math grades 1-6, Legos League, Science enrichment in STEAM Room

• Student support: social worker, psychologist, speech/language pathologist, occupational and physical therapists

• Model pre-school program • Quality special needs programs, services & staff • State-of-the-art school security • Advanced technology throughout the school and in every

classroom

FINAL COMMENTS The Board reaffirms its past and future commitment to make

reductions consistent with declining enrollments The Board realizes working as a team with the Board of

Finance and Board of Selectmen makes for better public policy and financial decisions for both the school and the Town

The Board remains fully committed to the one Marlborough concept

The Board maintains its commitment to make educationally sound decisions for children and fiscally responsible decisions for every taxpayer

THANK YOU!

Questions/Comments