Town of Concord Finance Committee
FY09 Guideline Subcommittee
Minutes of November 1, 2007
Final Approved
The Finance Committee Guideline Subcommittee met at 7:30 p.m. on Thursday, November 1, 2007 in the Board of Selectman's meeting room at the Town House, Concord, Massachusetts. Notice of the meeting was duly filed with the Town Clerk, Town of Concord, Massachusetts.
Members Present: Susan Bates, Walter Birge, Mark Howell, David Kramer, Judy Quanrud, Jack LaMothe, Mark Russell Prior, Maura Perkins, Roberto Tenenbaum, Charlie Blair, Tom Anzer, Carol Wilson Terri Ackerman
Also present: Tony Logalbo, Concord Town Finance Director; Jerry Wedge & Michael Fitzgerald, School Committee; Chris Whelan, Town Manager; Virginia McIntrye, Board of Selectmen; David Verrill, Carlisle Finance Committee; Brenda Finn, Superintendent of Schools; John Flaherty, Schools Director of Finance and Operations; Diana Rigby, Assistant Superintendent; Town of Carlisle Finance Committee: Thorton Ash, David Model
Subcommittee Chairman Walter Birge brought the meeting to order at 7:32 PM. Mr. Birge reminded the committee that the purpose of this meeting is to hear the responses and collect additional data to enable the decision making for the guideline recommendation which will take place at the next meeting on November 8.
1. CCRSD Response to Tentative Guideline
Superintendent Dr. Brenda Finn distributed updated material related to the High School program and financial plans for FY09. This included a list, requested by the Finance Committee at the previous hearing, of the potential program offerings and school goals for should funding be available. Should the resources be available the system would seek to implement a program to assist at-risk freshmen, additional elective offerings in science, music and an increase in the theater arts programs and intramural soccer.
Addressing the possibility of an $800-900K reduction, which the Finance Committees had requested due to Carlisle's outlook for FY09, Dr. Finn expressed grave concerns about the impact of such a reduction. The reductions would substantially eliminate identified needs that have been restored over the last three budget cycles. Cuts on the order of 8 full time equivalent (FTE) teaching positions and over 6 support staff would result from such a budget reduction. The reductions would spread over more than 8 actual positions by reducing some positions to less than full time; this could possibly result in losses of experienced staff that could not afford to only work part time. The reduction also include clerical support, professional development, co-curricula and athletic programs (representing about a 20% reduction, it would cost about $100 per
student per sport to restore the athletic portions using fees). Quoting from the handout, Dr. Finn stated that "What is clear is that a reduction of this magnitude would be destructive to the high school and would result in a severely weakened program."
Finance Director Flaherty also explained that a reduction of staff at this level, about 20 people, would also drive unemployment insurance up about $75K, forcing an additional FTE cut to fund that expense. Reviewing the Excess and Deficiency (E&D) account status, he noted that the district had and E&D balance going into FY08 of $895.583 or 4.3% with a maximum allowed of $1,108,256 or 5% of the FY08 budget.
He then reviewed the FY2008 Special Education Worksheet, which detailed how the district is working to address the projected $874,136 deficit created by the additional new special education expenses in the current year. Mr. Flaherty outlined how by restricting spending in certain identified accounts and applying for extraordinary relief from the State the district plans to manage the projected year end deficit down to about $43K. This amount may need to be sent to Town Meeting as a supplemental request. Looking forward to FY09 for Special Education, the budgeted level would be $2,435,222 for which is $652K greater that FY08.
In response to the Committee questions, Mr. Flaherty noted that this would be the first time Concord has made an application for extraordinary relief from the State. The rationale for allocating funds from the circuit breaker reimbursement received in 2007 into both FY08 and FY09 budgets is to spread out benefit in order to avoid need to make a very large supplemental request in any single year. He explained the sources of revenue assumption for State aid is based on what has been received. State aid, which exceeded budget estimates in FY07, was applied in FY08 to reduce the assessments to the towns during the current budget year.
Mr. Russell Prior asked if there has been any change in financial outlook for Carlisle. Mr. Model of the Carlisle Finance Committee responded that there haven't been any changes yet. Estimates for revenue within the Carlisle levy limit are still extremely tight. He noted that Carlisle is committed to developing a budget that the town can live with.
In response to a question about the availability of any private funds that could support the scope of the programs, Dr. Finn stated that over the past five years, the Concord Ed Fund has very generously donated over $750K which has been primarily used for technology and improvements. The School Committee has been principled about ensuring that ongoing operating needs are accommodated within the budget.
2. CPS Response to Tentative Guideline
Dr. Finn reviewed the Concord Public Schools (CPS) response to the Concord Finance Committee preliminary guidelines. Priorities for CPS include the implementation of special programming for academically advanced students, all day kindergarten, middle school Chinese language instruction, English Language Learner, Social Studies textbooks for 7th and 8th grades and 8th grade science textbooks, global education program (funded privately), additional psychologists, sustained professional development, and math curriculum specialists.
Mr. Flaherty reviewed the effect on the CPS budget of the Concord preliminary levy limit guideline. By reducing allocations to heating accounts, contingency account and supplies and material the administration feels it is able to provide for the identified needs within the levy limit guideline.
In response to a question Dr. Finn indicated that there is strong support for full day kindergarten. There has been support in the community and among the staff based on student outcomes to move to full day kindergarten. Ms. Rigby reported that there was a community based committee that studied the issue several years ago which had recommended implementation. The current kindergarten curriculum is too dense for the amount of time available in a half day program. A full day kindergarten will improve readiness for first grade and 60% of Concord students already go on to day care afterwards. In response to a question about impact on teachers, Ms. Rigby noted that an issue with the teacher's retirement system which used to penalize teachers shifting from half day to full days is no longer a problem. In response to a question
about energy cost, Mr. Flaherty noted that the experience with Alcott and Thoreau is that both new buildings are less expensive to heat than the old buildings even though there are both about 50% larger structures.
3. Town Manager Response to Tentative Guideline
Mr. Whelan presented the Town response to the preliminary guideline. He mentioned that the first priority is to address the pay and classifications. Four potential areas are being targeted for savings, fire department overtime, (about $100K); assessing area consulting services ($50K), Snow and Ice Account the Legal Budget. Litigation on soil on Thoreau school and land conveyance activity such as the Thoreau birth place are driving expenses in legal. Mr. Whelan indicated that the expenses for legal matters are exceeding the budgeted level and tight management of the use of legal services will be implemented for the remainder of fiscal year.
Mr. Whelan Reviewed a preliminary needs outline which was reduced from $1.337M to $824K. These reductions do not bring the level down to the proposed guideline increase of $692.000, leaving about $132,000 shortfall against the needs. However the town has yet to review the current department budgets. This will take place over the next month or so. In response to questions, Mr. Whelan responded that the public safety is being maintained within this budget.
4. Finance Director's Report
Mr. Logalbo reviewed a handout on the impact of the Willard program on the tax-supported debt. The handout included impacts of the existing debt schedules, routine capital programs, new Thoreau bonds and Willard Design fund conversion to planning bonds with a 4 year maturity (which would occur is construction does not get approved). The handouts outlined the absolute value of outstanding tax-support debt, the percent of assessed valuation and pre capita debt levels. Underlying assumptions are no MSBA aid and low new growth and modest assessed valuation growth. The handout also detailed the current excluded debt for both the town and for the CCRSD.
5. Adjournment
Mr. Birge noted that the subcommittee will reconvene on November 8 to discuss an updated guideline recommendation. Mr. Anzer reminded the committee to be at the High School on Monday November 5 at 7:00 PM for the Special Town Meeting.
Reminders
a. Next Subcommittee meeting - Nov. 8
b. Next Regular FinCom meetings -Nov. 15, Dec. 13
c. Special Town Meeting: Nov. 5 (continuation Nov. 7)
d. Special Election for Willard School debt exclusion: Nov. 14
The meeting adjourned at 9:50 P.M.
Respectfully submitted,
Mark L Howell
Guidelines Clerk
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