11/13/1996 BOARD OF SELECTMEN Executive Session (4)

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SANDWICH SCHOOL FINANCE A Report for the Sandwich Public Schools o f net school spending supported by local taxes is $14,479 thousand,which is $31,000 r above the minimum. For FY 96, the calculations begin with the town's minimum required contribution. This will be calculated from the minimum (not the actual) for the current year; I've assumed a local growth factor of 3.28%. When expected state assistance and impact aid are added, the minimum required net school spending is $16,524. The town does not need to appro- priate to the school committee the $3.25 million it provides directly I've assumed 3.25°0 inflation in these amounts; the actual number will depend on actual increases in health care costs and other relevant town spending), so the,amount that must be appropriated to the schools for net school spending purposes is $13,544. In addition, the town must ap- propriate the transportation amount,which the school administration estimates at $500,1000. (The school transportation amount is not dictated by the school reform law). Assuming approval of the school's transportation request, the required school committee appropriation for FY 96 would then be $$14,044,000. INFLATIONAiD History Sandwich schools face financial difficulties because enrollment is rising more quickly than local tax revenues and because, until the foundation budget catches up with falling per- pupil spending, there is no state aid to make up the difference. In the House bill, this problem was addressed via inflation aid,which was assistance to be paid to school districts when the foundation budget was increasing more rapidly than the expected local contribu- tion. This provision would have been particularly valuable to communities like Sandwich wit z rapidly growing enrollment, spending above the foundation, and moderate property wealth per student. The provision was omitted from the Senate version of the bill because of a difference in philosophy between the House and Senate education chairmen. The House bill reflected a view that it was important to preserve current, inflation-adjusted per-pupil expenditure in districts spending above the foundation. The Senate bill, and the final law, reflect the philosophy-that state funds should not be used to help schools with above foundation spending until every low-spending district reaches foundation level spending. The original proposals from the Massachusetts Business Alliance for Education (MBAE) called for modifications to the Proposition 2 112 ceiling so that the levy limit would grow enough to allow current spending to rise with inflation and enrollment growth. Since such changes to Proposition 2 112 were politically off-limits, there was no way to maintain cur- s rent � Pro ram levels in districts like Sandwich without an increase in state aid. Page 17