Regional Schools Will Need To Reduce Expenses In FY 2024

Report On The Meeting Of The Amherst Finance Committee, April 18,2023

This meeting was held over Zoom and was recorded. It can be viewed here.

Present
Andy Steinberg (Chair, at large), Cathy Schoen (District 1), Lynn Griesemer (District 2), Ana Devlin Gauthier (District 5), Ellisha Walker (at large). Walker left the meeting after one hour. Nonvoting members: Matt Holloway and Bernie Kubiak. Absent: Bob Hegner

Staff: Paul Bockelman (Town Manager), Sean Mangano (Finance Director), Doug Slaughter (School Finance Director)

The number of members of the public in attendance was not announced.

The introduction to the FY2024 Regional school budget states, “The proposed Level Services budget for fiscal year 2024 (FY24) is $34,764,354, a 5.4% increase or $1,782,622 above FY23. The relatively high rate of inflation seen in the broader economy is translating to higher pricing across the District’s expense areas with large increases in Healthcare (+8.5%), Retirement (+11.05%), Transportation (+8.5%) and Special Education OOD [out of district] placement costs (+14% within the larger Special Education Expense budget). This projection currently exceeds the resources available by $1,157,736. As a result, the expense budget will need to be reduced to meet the available revenues. A combination of budget adjustments (such as a reduction of sabbatical leave expense, staff turnover savings, etc.), savings related to lower enrollment, programmatic changes that reduce cost, etc. are being explored. Only as a last resort will cuts to student programs and services be considered. “

School Finance Director Doug Slaughter said that the current budget represents an increase of three percent over the previous year, or about $97,000. Because the school system is still negotiating several contracts, that money will be placed in a contingency account for now. In previous years, the contingency account has usually been about $50,000 to $60,000. Assessments for the three other towns in the region are based on a five-year rolling average of students with four percent “guardrails” created to protect the smaller towns from large fluctuations in their assessment. By this method, Leverett and Pelham have reached the four percent maximum increase, but Shutesbury owes an additional $9,000, which town administrators have agreed to pay. 

Finance Committee member Ana Devlin Gauthier (District 5) noted that if positions are being cut, the budget is not funding level services. Slaughter replied that most of the eliminated positions were funded by the ESSER (COVID relief) funds that expire next year, and  that the permanent positions remain fairly stable.

Cathy Schoen (District 1) pointed out the decrease in enrollment of about 100 students  compared to two or three years ago. She asked about data on how many students have special needs and how much of the decrease is due to students leaving for charter schools, as opposed to those coming into the school under the school choice program. Slaughter said that the number of students leaving for charter schools has remained fairly stable, but the outflow of money that follows them to the charter schools is substantial, although it is predictable. He said that, ideally, we would like to bring more of those kids back,or not lose them in the first place in seventh grade. He added that the number of special needs students is fairly stable, but their complexity and acuity has increased over the past couple of years and was especially exacerbated by the pandemic. Costs for those placed out of district have increased by 14%.

Due to the decrease in enrollment, the middle school was able to reduce staff by one-half team (two teachers) without affecting class size. Reducing staff in the high school is more difficult because the region wants to maintain the breadth and depth of programming to stay competitive with other districts. The effect of decreased enrollment on staffing will need to be reevaluated in FY2025.

Schoen also asked about opportunities for Amherst sixth graders to participate in the more advanced art, music, and world languages when they move to the middle school in 2026. Slaughter said the administration is still studying this matter. He hoped the cost of the increased class choices could be split between the Amherst-Pelham School System and the Regional School District. He noted that the challenge would be in administration, since the sixth grade would need to be its own school, not part of the middle school. There would also need to be adjustments to the regional agreement between the four towns to permit the Amherst sixth graders to occupy the middle school.

Lynn Griesemer (District 2) asked whether the presence of charter schools increased school segregation. Slaughter said this depends on the school. All public charters publish their population statistics, but some economic segregation is inevitable. If a family can’t provide transportation to a charter school, for example, the student can’t attend.

Major Capital Expenses Looming For Schools
Griesemer worried about the major expenses needed for repairs to the 50-year-old middle school and 65-year-old high school coming when the towns are undertaking their own capital projects. Slaughter said that this year’s budget involves switching to more environmentally friendly modes of heating and cooling, which will save money. The schools will continue to study combining all six grades, 7-12, in one building in the future if enrollment continues to decline. He also hopes the Massachusetts School Building Authority will resume its accelerated repair program to help pay for the middle school and high school roofs, both of which need replacement.

The Finance Committee recommended the Regional School Budget to the town council without objections. There will be a public forum on Monday, April 24 at 6 p.m.

Proposed Use For Cannabis Impact Funds
For the past three or four years, the town has received funds from the state resulting from sale of cannabis products in town. This money has been accumulating in free cash, but the state requires that it be used to mitigate the impacts of the dispensaries in town. Finance Director Sean Mangano suggested that the town create a revolving fund and that about $10,000 a year go to a 10-hour-a-week staff member to oversee licensing and renewal of agreements with the dispensaries. 

Slaughter then proposed that the school system use some of the money to purchase curriculum materials for educational activities for students and staff around use of marijuana and other drugs. He also suggested that the school purchase more vape sensors for the high school to identify students who are vaping in the restrooms and deal with them in a “positive, non-punitive way.”

The town manager will be in charge of allocating the funds and will report to the town council on their use annually.