Sunday, May 3, 2009

Questions/Issues Re: SAD63 Financial Budget

Over the past few days I have been provided with several documents relating to the status of the current SAD63 budget (2008-09) and drafts and expanations for/re: the projected 2009-10 budget. It's not so much that I don't understand what I'm reading - not like "It's in a foreign language" more like I have to ask why it's formatted the way it is and why we, as taxpayers and voters and parents haven't asked certain questions before - or taken the time (regardless of how long it takes) to get some reasonable/responsible answers.

I know we can't change what is in the current budget. It was voted and approved last year (but not by that many considering how many registered voters there are in the towns that constitute SAD63), but what election ever is (other than last year's Presidental election.)? And President Obama or our Senators/Representative to Congress are MUCH further away from impacting our daily lives than a School Budget/Board member or a local Selectman/woman.

To start, let's look at two really important pieces of news right here from our Legislature and Governor that happened in the last two days. Because those pieces of news ARE going to effect our school budgets and therefore our property taxes by 2011.

1. Governor Baldacci is proposing to cut state assistance to schools in 2011 by an additional $69 million. If we thought this year has been difficult (because the state either hasn't paid its share on time - or - hasn't told the districts how much it was going to be giving them in 2009-10 (when the state plans to use the federal stimulus money to pay the state's share to the school and the state doesn't know when it's going to get the money it can use for this purpose), wait until 2011 when there won't be any stimulus money AND the state plans to cut $69 million more than it paid out in 2008-09!

2. There is a proposal currently in the Legislature addressing the reduced tax revenue from businesses statewide which will subsequently reduce the allocation from the state back to the counties, cities/towns. The consequence of that action will mean that towns like Eddington, Holden, Clifton, etc. will have to increase the mill rate to offset the reduction of income from the state resulting in an overall increase in property taxes for home owners just to pay for town government expenses - and that's before we start paying for school budgets. (So while Governor says he doesn't intend to raise taxes - he's just passing that job down the line to the towns.) BTW - the Legislature is also reporting to be considering reducing the amount it will offset for Homestead exemptions (which will also have the added effect of increasing property taxes in addition to the foregoing information).

So this proposed 2009-10 SAD63 budget should be looking for (and enacting) ways to be reducing the existing budget - not increasing it, regardless of teacher contracts or the legal costs of the current lawsuit. "It is what it is and it ain't what it ain't." Stop wasting time over stuff that can't be changed. Learn from it and moooove on. Especially if anyone expects people to be voting on a budget by June 9.

So these are my issues, questions, and proposals/suggestions. (And you'll have to excuse my expectations in some of these areas, but my experience has taught me to believe nothing I can't see with my own eyes and can't add with my own printed out calculator tape.)

  1. Generally speaking, why isn't this budget treated like a four-division fiscal plan?

  • By this I mean, each school is a division (that's 3 divisions) and Administration is a division. [Shared-services, such as transportation, can be placed under the Administrative division.]

  • All positions in each division should have a position number with an identification as to pay grade. That position's retirement and benefits costs would also be identified utilizing that position number with an appropriate code for retirement or benefit, etc.)

  • Anything having to do with personnel costs (pay, retirement allocation, benefits costs, etc.) should be shown "above the line" in the division's budget in that section identified as Personnel Costs - for the division (i.e., Eddington School, Holbrook Middle School, Holden School)

  • "Below the Line" is for Operating Expenses and Equipment (OE&E) for that division. OE&E items include leases for copiers, teacher/student supplies, minor capital outlay (meaning maintenance costs under a certain specified dollar amount - perhaps $10,000.) for the schools only.

THEN, those division budgets, once approved by the voters, would be turned over to the school principals to manage. The principals know best what their priorities are and how best to squeeze their budget dollars to get the most out of them. Teaching contracts are pretty much set and those salaries have to be paid. Benefits are set by the contracts. The greatest areas of flexibility are those in OE&E. Let the principals work out the details with their teachers and staff. I'll bet they can do a better job with the tight dollars than anyone else. It's their schools and their students.

For those services that are shared between the schools, the paperwork can be managed by the Administrative division. The contracts for those services, i.e., special education and speech pathology are also pretty much defined as to the individual student's or school's need.

It would be much more effective to see how the individual divisions operated and what their needs were if they had separate budgets managed by the parties most directly interested in how the money was utilized.

2. Which brings me to another couple of points re: the current presentation.


  • The current financial reports, as well as the proposed budgets, act as though there are both custodial staff and maintenance staff. The referenced documents clearly show Custodial wages, benefits and retirement and also show Maintenance wages, benefits and retirement. BUT - the same people are doing both custodial and maintenance. In theory, these individuals are custodial during the school year and maintenance staff during the summer months. But even that's not really true. They shovel snow during the winter - respond to school alarms whenever they go off, they fix stuff whenever stuff needs fixing, mow lawns, etc. - and this goes on year-round.

Some work the day shift while others work the night shift; some are full-time and others have had their hours cut back to less than half time. But they all do both custodial and maintenance. In reality, I expect their Duty Statements say "and other duties as assigned" or words to that effect to cover the switch over. But, there is no reason why the budget should act as though there are difference classes. There may be custodial suppies and maintenance supplies - but things like this make me suspect of the credibility of the document as a whole.


3. Did you know that in recent years, since the former superintendent came on board, the district contracts out to have the payroll done for employees. Perhaps that is the "Purchased Professional Services" on the financial report with the annual cost of $2,500.00. BUT - the district is reported to have purchased a pricey computer program a while back that includes the ability to do the payroll - and to calculate and add in all the factors required for social security contributions, benefits, etc. once staff enter the specifics. So why are we (in essence) paying double for the payrolling process? The previous administrative assistant in the superintendent's office, before Ms. Regan, did all of the payroll - at a lower salary than the current business manager, who doesn't do the payroll.

4. And then there are the high school tuitions. The projections show 100 students going to John Bapst High School, 192 students going to Brewer High School, 20 students going to other unspecified high schools in the areas. While the current high school enrollment is 302, the projection is for 312. Except that I recently read that tuition for John Bapst, a private high school, is something like $1574.00 higher than the state-based tuition for the other schools our students can elect to attend because of the choice option. And SAD63 pays the full amount of the John Bapst tuition including the $1574.00.

There are so many people I've talked to in Eddington who are of the mistaken belief that the parents pick up the John Bapst differential. That is not true. The parents do pay any extra fees for the sports programs there, but SAD63 taxpayers pay the basic tuition for all students attending whatever high school selected AND we taxpayers also pay that $1574.00 per student attending John Bapst. That's $157,400. dollars thats written into the school budget for 100 students to attend a private school. Now I've no problem if that's where the parents/students want to go. I'm told they get an excellent education there. BUT, I think the paents should be picking up that extra $1574. As it is, SAD63 provides the transportation to and from J.B., just as it does to the other high schools - but let's get real. Can we afford this? I don't think so.

5. Now this last area is a touchy one - but it still has to be looked at because it has a price tag of over One Million Dollars - and that is the cost in SAD63 for Special Education. State law and human decency requires we provide the opportunity for special needs children to have access to the public school system and to have the tools that will help them achieve their potentials. But we do not have to set ourselves in the position of offering a Cadillac program when the law requires only a Fiat program. Somewhere there must be a middle ground. As an example, there is a child who must be transported every day to Ellsworth for services of some sort. The Special Ed's Director's salary was previously paid with grant money but now must be paid from the general fund. Summer school tutor wages and benefits total $4,000.

One million dollars is a lot of money. And the state plans to cut funding for special needs and special education right along with regular education. So how much of this One Million $$$ will we have to be picking up that the state may have been helping with but will be backing out of?

Somewhere we better be cutting some money in 2009-2010, too, because the stimulus money is supposed to be used to find ways to generate funds or reduce costs for 2011. The state certainly isn't planning to generate money for SAD63 in 2011 so we better be preparing right now for a leaner budget than we've been operating on.

Oh-BTW, the word is that communities are going to be required to pay up front the penalties assessed by the state for voting down consolidation (which we all did quite soundly) before we get any of the 2010 stimulus money (when Augusta figures out how much that will be). AND that while we were told the penalty for Eddington, Clifton and Holden was going to be $157,000 - the state changed its mind. Said it had miscalculated. State says now the penalty is $163,000 divided by the three communities. I don't have the breakdown by towns but your town manager probably does.

I know the scuttlebutt that there's pending legislation to defer payment of the penalties - but I'll bet that deferment (it it does happen) will only be until after the people vote on the state ballot re: school consolidation. If the vote doesn't overturn the Legislature, I'd expect penalty bills to go out the next day. The state wants/needs the money.

I realize there's a lot of information here - lots of ideas. You have to think these things out. Good way to start is to attend School Board meetings and Budget & Finance Committe (BFC) meetings. Do some intense listening - ask questions. Keep asking until you understand the answers. Don't let the Business Manager or anyone else take you off track. Tell them - if you don't understand or don't agree - You Will Vote the Budget Down and you'll tell your friends to do the same.

The one thing you must understand is this - just because you don't have children in the schools doesn't mean you can ignore the school budget issues. You are going to pay for the school system here whether you have children in it or not. Get involved. Get informed. Get your neighbors involved and Vote. The tax bill will come whether you vote or not. Better find out what you're going to be paying for.

******
Hawaiian Night last Night at Clewley Farm Restaurant. Frozen strawberry dacquaries (I know I spelled it wrong but can't find it in the dictionary - oh well), bananbamas (Bob's creation) flowed, decorations were all over the place, Lonnie looked great in a blue print shirt (he should wear that shirt often it looked so good on him - true). He outshined Bob, for sure. Lots of people for a good time - but not me. I pooped out after the Derby race. What a race! Love the sheer joy of that jockey - and what a story behind that horse ($9,500. purchase price) - 50 to 1 odds - and an owner with pins in his leg from a motorcycle crash who drove that horse (Mine the Bird) for 21 hours in a van behind a truck from New Mexico to run in that race. Talk about Hope and Sheer belief in your animal! And the favorite - Phanton on the Nile cost $3.7 million and he came in fourth (I think). Ahh, give me a horse with a good story and a jockey with a big heart.

Clewley's will be closed next Saturday. And the following Saturday will be the Preakness!

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