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RSU #57 2019-2020 Budget Review Session. Alfred***Limerick***Lyman***Newfield***Shapleigh***Waterboro March 25, 2019. RSU #57 Mission Statement. RSU #57 prepares respectful, responsible and creative thinkers for success in the global community. Budget Development Process.
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RSU #572019-2020 Budget Review Session Alfred***Limerick***Lyman***Newfield***Shapleigh***Waterboro March 25, 2019
RSU #57 Mission Statement RSU #57 prepares respectful, responsible and creative thinkers for success in the global community
Budget Development Process The Finance Committee and the District’s Leadership Team began the budget process in early January, focusing on the goal of providing a quality educational experience for all of our students, while also being fiscally responsible to the taxpayers of the communities. The budget was developed with the goal of improving the quality of current programs and staffing as well as implementing a new Pre-K program and improving instructional support systems. The District is working diligently on addressing the changing needs of students and allocating personnel and other resources to meet these ever increasing needs. Administrators began the budget process by allocating funds to specific line items for their respective sites.
Budget Development Process The Finance Director worked closely with the Superintendent to develop cost center budgets which were then reviewed in detail by the Finance Committee. The Finance Committee performed a detailed review of the budget throughout the entire process as well as met with and reviewed the special requests of all administrators. The Finance Committee will present the recommended fiscal 2019-2020 budget to the School Board for their review and approval prior to submission for voter approval.
What is a Baseline Budget ? The baseline budget is the starting point in the budget process The baseline budget utilizes the current year budget as its base The budget is then adjusted for such items as current year expenditures, inflation and future year expenditures and needs The budget is based upon the facts known at the time and is continually adjusted as more data becomes available and the budget process develops The Superintendent and Finance Director also provide updates on the needs of the District to the Finance Committee as well as updates on special requests
Budget Challenges • In recent years the state subsidy formula has been constantly changing and has proven to be very unpredictable. In addition, over the past ten years state funding has become a smaller percentage of how the District’s overall budget is funded • In FY 2007 the state subsidy was 47% of general fund revenue • In FY 2017 the state subsidy was 37% of general fund revenue • The current state subsidy report for FY 2020 reflects an increase for the first time in several years • The District is part of a regional service center in order to receive additional funding from the state • Increased educational and non-educational mandates • A significant increase in the needs of students in order to achieve educational goals • A continual restriction of grant funding which puts additional strain on the general fund budget • Increased cost shifting by the state for funding retirement and other costs • Aging buildings and infrastructure which require additional costs to properly maintain • Finding ways to reduce overhead costs given the spread out nature of the District • Historical decreasing enrollment which is now anticipated to remain flat over the next ten years
Cost Containment & Allocation • Providing necessary staffing through attrition whenever possible in order to address teaching ratios while addressing increased student needs • Reallocating staffing needs for new or expanded programs through attrition and retirements • Continual examination and adjustment of resources in order to obtain the most advantageous state subsidy revenue given an ever changing subsidy model • Think differently about how some services are delivered in order to obtain the most efficient use of resources • Continue proactive planning of building and infrastructure needs to mitigate problems and decrease both short term and long term costs • Address areas of significant rising costs with alternative options- examples include health insurance, transportation and energy costs • Consider additional grants and other funding sources given the increase in federal and state mandates
Historical Enrollment Data This chart reflects the annual attending enrollment data as of October 1st of each respective fiscal year. Source: Maine Department of Education
Historical State GPA Funding Starting in FY 2014 part of the retirement costs are being passed on to school districts. FY 2020 is based upon preliminary amounts provided by Maine DOE. Source: Maine Department of Education
Capital Reserve Funding The Maine Department of Education recommends that school districts reinvest 2% of the current replacement value of buildings and infrastructure into capital improvements. With a current replacement value of over $100,000,000 the District would need to invest $2,000,000 per year. This amount is currently well above the amount being funded through the annual budget process. In order for the District to be fiscally prudent, taxpayers have previously approved transferring monies into the capital reserve fund. With the continued aging of the facilities and infrastructure it is recommended that there be a warrant article to authorize the transfer of $750,000 from the general fund balance to the capital reserve fund. This will help assist in the planning and implementation of capital projects while helping to decrease the impact of future tax increases.
District Maintenance & Improvement Projects • District has performed many improvements over the past several years as part of the annual budget • District has already performed a leachfield analysis, paving analysis and a roofing analysis in order to assist in its five year plan • District is currently performing a significant energy conservation project to save energy costs, decrease repair costs and improve its HVAC system, new windows, improved HVAC control system, domestic hot water improvements and more energy efficient lighting • Annual roof replacement project – FY 2020 portion of Shapleigh Memorial School and roof edging at Massabesic Middle School • District is performing annual septic improvements. In fiscal year 2020 the District will do improvements at the Massabesic Middle School and Waterboro Elementary School • Over the past year the District has replaced part of the roof at Waterboro Elementary School, paving at Lyman Elementary School and a new storage building at Waterboro Elementary School • The Finance Committee and administration is continually updating its detailed listing of building needs as well as an implementation timeline. In addition, the Finance Committee has a capital plan for building and facility improvements
General Fund Revenues • Approximately 93% of funding for the District comes from state subsidy and local taxation. Approximately 1% comes from other external revenue sources • The state has reported in its current state funding calculation that RSU #57 would have an increase of approximately $1,050,000 in state funding for FY 2020 as compared to what is currently being received in FY 2019 • This increase is the first significant funding increase since fiscal year 2016. • The District is working diligently to analyze the funding formula each year and take advantage of as much subsidy as possible • The District continues to take advantage of the Medicaid billing program in order to obtain the best financial benefit possible for the District • In FY 2019 the District increased its use of general fund balance by $450,000 and has retained this amount again for fiscal 2020
General Fund & Adult EducationBudgeted Revenue Allocation – Fiscal 2020
