School Committee - Finance Subcommittee

EASTHAMPTON SCHOOL COMMITTEE FINANCE SUBCOMMITTEE MEETING (Wednesday) March 10, 2021 School Department – zoom only 5:00 p.m. Meeting Notes Attended by: Allison LeClair, Dayle Doiron, Jonathan Schmidt, Marin Goldstein, Shannon Dunham, and Cynthia Kwiecinski 5:02pm start I. Public Speak n/a II. Projected Operating Budget, 2021/2022 (FY22) a. Review Entire Operating budget Reduction plan - $17,576,643 total budget proposed less 2.5% mayor requirement decrease $478,950 Choice reserves – balance 6/30/20 - $1,544,056 because did not use all planned for 2020 budget, budgeted $700k for FY21, likely a lot lower after other grants – more in range of $300-400k Already planned on likely using $675k for FY21, now use an additional $478,950 to meet the required reduction If all current estimated earning for Choice in FY21 is now at $752k Request an increase of only $40,548 in budget for FY21 and then we use ESSERII and Choice to cover the reduction. The intention of these funds are for the additional needs based on COVID like PPE etc. There is a concern that applying one time funds to cover other needs is a long term risk, but in this case it is not seen as such for general operational support. State Chapter 70 funding will go up by about $50-55k, and likely to get better State revenue is not lower, but better on all projections Mayor stated local revenue is dropping and won’t budge on 2.5% reduction; why if State is giving more funding to schools, why is not coming to our budget? School department builds up the reserves for a bad year so that we can be intentional with savings in our budget. This is that bad year and we are in a healthy place to cover the necessary reductions. Reductions from the budget out to be covered by Reserves – focused on items that flucuate and could be less in FY23 anyway such as OT, severance payments, instructional hardware as covered in new school, staff reductions in FY23 LPN/custodian/admin assist/building administrator, anticipated 40% reduction in utilities/heating in new building, contracted services on buildings reduction by 20% as we’ll be in new building with lower costs, staff devo supplies covered by ESSER, vocational tuition as it flexs every year and summer salary lines as they can be covered to ESSER, especially since likely to be high in summers of ‘21 and ‘22. These lines are best in line with potential FY23 budget development. FY23 also anticipated, we will see increase on Choice with new school. Also increase in efficiencies are anticipated in staffing and class sizes. Grants – if totally pay for programming, then they aren’t included in Operating Budget. Often only report on the grants that impact and share funding for offset operating costs. E.g. Maple – new counselor is totally paid by grant, so not seen in the Operating Budget. Request for a new reporting tool to show the full picture of the budget that includes these grants and the programs/line items that they support or increase overall funding. Johnathan makes a motion to accept the budget and proposed method to meet required reductions, Cynthia second, vote 3:0 Upcoming Budget Subcommittee Meetings a. Tuesday, March 16, 2021 (if needed) – NOT NEEDED i. Final Review Entire Operating budget II. Other Business: Budget meeting preparation – meeting Allison, Dayle, and Marin Thurs 3/18th 11am Quarterly reviews – not done Q2 yet and Q3 closes 3/31 – schedule meeting 2nd week of April III. Adjournment: Adjourn at 6:10pm Finance Subcommittee Members, 2021-2022: Marin Goldstein, Chair Cynthia Kwiecinski Jonathan Schmidt