ADMINISTRATIVE BUDGET SESSION

 

MARCH 3, 2022

 

 

Town Manager's Proposed Budget

 

Town Manager's Presentation

 

At an ADMINISTRATIVE BUDGET SESSION of the Town Council and School Committee of the Town of South Kingstown, County of Washington, in the State of Rhode Island, held at the Town Hall, in and for said Town on the 3^rd day of March 2022 at 6:30 PM.

 

PRESENT:     Town Council

Rory H. McEntee, President

Abel G. Collins, Vice President

Deborah D. Bergner

Deborah J. Kelso

Jessica L. Rose

 

School Committee

Paula Whitford, Chairwoman

Michelle Brousseau, Vice Chairwoman

Melissa Boyd

Christie Fish

Kate M. Macinanti

Michael K. Marran

Carol A. Vetter

 

 

Also present: Theresa L. Murphy, Interim Town Manager; Zachary Saul, Finance Director; Dr. Frank Pallotta, Interim School Superintendent; Gina Marie Masiello, Assistant School Superintendent; and Raquel Pellerin, Chief Financial Officer, School Department.

 

The Pledge of Allegiance is given. The Land Acknowledgement Statement is read.

 

Theresa Murphy, Interim Town Manager reviews the budget process and schedule of meetings, and provides a summary of the proposed budget for FY2022-2023 which carries a tax levy increase of 2.26% from the current year appropriation. The proposed tax rate is $11.02 per thousand, a 23.74% decrease from the current year due to the impact of the recently completed town-wide property revaluation. Mrs. Murphy reviews the summary of expenditures and revenues which total $102,546,998. The property tax distribution indicates that the School Fund makes up nearly 73% of the budget, and the General Fund is 24%. The School Fund is recommended to be level funded at $55,994,773 because the full impact of the school facilities assessment and potential redistricting is not known at this time. The history of School Fund transfers and the property tax levy rate allocation are reviewed. Mrs. Murphy notes that the Interim School Superintendent and Chief Financial Officer will present their budget in detail.

 

Dr. Frank Pallotta, Interim School Superintendent gives an executive summary. The School District’s FY2022-2023 budget represents their continuing effort to improve teaching and learning and improve the school’s infrastructure while balancing the needs of taxpayers. In January the School Committee adopted a three-year plan. Within that three-year plan two schools are recommended to close: Curtis Corner Middle School in FY2023-2024 and Wakefield Elementary School in FY2024-2025. The motion to approve that plan included to hire a consultant to redraw the boundary lines and implement a redistricting plan for the FY2022-2023 school year. Additionally the School Committee hired an educational facilities planner, Studio JAED, to conduct a needs assessment, create a master plan, and prepare a RIDE necessity of construction Stages I and II. Prior to hiring the Educational Facilities Planner, the School Committee set up four sub-committees: budgeting, strategic planning, building and redistricting. Multiple public meetings were held with each of the sub-committees. The intent of the sub-committees was to gather and provide information to the School Committee in order for the School Committee to adopt the three-year plan. The following objectives have been achieved: establishment of the four on-going sub-committees to gather critical data and work closely with the educational facilities planner and the attendant zone redistricting consultant; contracted an educational facilities planner to conduct an infrastructure needs assessment and create a master plan; adopted an RFP for a consultant to rezone school boundary lines effective for the 2022-2023 school year; and adopted a six-year capital budget. Every school has a school improvement plan, and a district improvement plan is also included in the budget.   

 

The School Committee’s FY2022-2023 budget of $69,176,817 includes a municipal request for funding in the amount of $56,510,850, an increase of $516,077, or less than a 1% increase from the current year funding. The School Budget includes the use of school department fund balance, and the use of various grants and State Aid. Staff reductions of 18.3 full time equivalent (FTE) personnel are also proposed.

 

Raquel Pellerin, Chief Financial Officer presents an overview of the School FY2022-2023 proposed budget development and preparation. Ms. Pellerin reviews the scope of the budget, building and strategic plan, and redistricting subcommittees. The consultant’s report is expected to be completed by April 12^th. State law governing the preparation of an annual school budget has been amended to include School Principals, in consultation with a School Improvement Team, preparing and submitting a budget for consideration by the Superintendent, who then prepares a district budget for consideration and adoption by the School Committee.

 

Gina Marie Masiello, Assistant Superintendent discusses the learning loss due to the pandemic, and the School’s efforts to determine student needs, address gaps, and focus on math, reading and social/emotional learning.

 

Ms. Pellerin notes that they originally started at $2 million over the current budget, then went back to the principals for review of proposed reductions to staffing and expenditures. Preliminary recommendations on redistricting were considered, and maximizing grant funds. The ESSER 2 and ESSER 3 grants focus on social/emotional and learning loss.

 

Ms. Masiello notes that grants are being used to fund positions specific to learning loss, some state mandates such as training, and additional training for reading teachers.

 

Ms. Pellerin reviews the revenue sources for the FY2022-2023 budget. State Aid for Education is proposed in the Governor’s budget to remain for the second year of “hold harmless” for all enrollment reductions. The closing of a school will offset reductions in State Aid next year. The School Committee’s budget development policy includes assignment of fund balance. The fund balance after FY2022-2023 proposed expenditures is estimated to be $1.5 million. Funds are set aside for unanticipated high cost special education, General Fund one time expenditures and Capital Funds. Federal ESSER II and ESSER III grants are based on data and are to support social/emotional needs, learning loss, and retention of positions.  

 

Eighty-two percent of the School Budget is supported by municipal funding. Ms. Pellerin reviews the state requirements for maintenance of effort with regard to expenditures, the annual 3% requirement for maintenance in the operating budget. The School Department must meet all requirements of the Basic Education Plan set by the RI Department of Education, federal requirements for Special Education, contractual increases, health and dental, and pension costs.  Grant funding will be utilized for additional staff to support social emotional and learning loss, and additional summer supports for learning loss. A decrease in staff is anticipated due to the elementary redistricting plan, and across the district based on enrollment, funding and the reduction plan. A net reduction of 18 staff is projected. Contracted services include transportation, tuition costs and out of district costs. Unfunded mandates include newly-required professional development training for staff in math, ELA and science.  

 

Ms. Pellerin reviews the summary of proposed FY2022-2023 expenditures. Seventy-four percent of the budget is allocated to salary and benefits, with 18% allocated to other purchased services such as transportation and tuition costs. The proposed General Fund budget is $328,394 or 0.53% higher than the current year. The total proposed budget shows an increase of 4.86% from the current year mostly due to FY2022-2023 ESSER grant funds. The next steps are to complete the redistricting study and facilities assessment, monitor the Governor’s Budget with the hold harmless provision for State Aid to Education, explore possible cost savings and provide updates to the Town Council.

 

Discussion ensues relative to the School Department’s audited financial statements. They are posted on the School’s website. Financial statements were delayed due to changes in reporting. Financials for February should be out later this month. 

 

Discussion ensues relative to out of district students and high cost special education. Some special education students attend out of district schools such as Meeting Street. The School district also pays for students going to CTE, charter or state schools by choice. We are also required to pay the costs for DCYF special placement students.

 

Discussion ensues relative to the 3% requirement for maintenance, transportation savings that may be realized with redistricting, and the assumption that State Aid will be level funded.

 

Discussion ensues relative to submitting an application to RIDE for a facilities plan in September 2022.

 

Discussion ensues relative to the School Department year end surplus of $300,000 being appropriated back into this year’s budget.

 

Discussion ensues relative to Maintenance of Effort funding on a per-pupil basis. Ms. Pellerin discusses the reasons that per-pupil funding is never done due to the requirements involved.

 

Discussion ensues relative to data provided by state assessments, communication between elementary, middle and high school grades relative to learning loss, personalized plans for struggling students, and access to online summer programs if students can’t attend summer school.

 

Discussion ensues relative to projected enrollment-driven expenses. The residential average daily membership (RADM) looks at last year and compares March 2020 with 2021. The number is now at 2,680, and RADM includes charter schools.

 

Discussion ensues relative to whether special education mandates have to equal the prior year. There are certain criteria to be met, and certain exclusions can be deducted.

 

Adjourn at 8:03 PM.   

 

Susan M. Flynn, CMC

Town Clerk