2/8/2018 FINANCE COMMITTEE Minutes

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3 Finance Committee Minutes February 8, 2018 School Committee—FYI Budget Review: (continued) Mr. Funic gave an overview of the budget process which originally increased the budget by 4.5% from fiscal year 2018. The Town Manager's initial recommendation was 1.7%. After deliberation,the budget was modified by Town Manager Rodney C. Collins to reflect a 2.01% increase in FY19 to bring forth a total budget recommendation of$21,289,520. The budget was further review by the School Committee at their Public Hearing and, after considerable deliberations, the School Committee voted to increase the budget by 2.46%. Using $355,411 in School Choice funding,the net budget recommendation is $21,384,109. The increase from 2.1%to 2.46% is $94,589. Available funding to offset this increase has not been determined. It was noted that School Choice funds are generally used for technology innovation, infrastructure and transportation With the use of the identified funding to offset the budget, the remainder of funds in School Choice account would be approximately $100,000. Mr. Funk recommended that a balance be maintained for future needs, and unforeseen expenditures. The School Choice budget is funded by non-resident students who opt to attend Mashpee schools. Although it has not been fully determined, the balance of this budget is projected to increase to $475,000 next year. In considering the use of School Choice revenue, there was a noted concern with respect to identifying this funding source to offset the school's operating budget. The School budget is reflective of an increase of 3.56%or $606,226 in system-wide salaries with two new positions, 3.33%without the new positions. Fiscal year 2019 represents year two of a three-year teacher salary contract. Discussion followed with respect to the high cost of contractual obligations within the Town and School Departments and the impact of the future financial obligations affecting the Town of Mashpee. On the governmental side,the ten-year financial forecast is projecting a financial cliff in fiscal year 2021. To address potential revenue shortfalls, the School Department is continuing to improve upon skills sets. The population is relatively stable, although the needs of students are notably different than two years ago. Demands on resources are also fairly significant. Learning today is very different than in the past. Children entering the school system have challenging social and emotional issues. One of the strategic long term visions is early intervention at the pre-school level for potential needs and services. Although the free school program is an added operational expense, strategically, it will save the Town in the long run. With regards to attracting students to offset the increase in salaries, it was noted the School Department has a keen ability to attract students and to provide programming. The curriculum offers significant learning abilities. A majority of School Choice students began their education in Mashpee and have the desire to continue their education in Mashpee. What causes the loss of residency is in the larger scheme. To offset costs, staff members as well as volunteers are placed accordingly throughout the district to accommodate the needs of the schools.