1.         PLEDGE OF ALLEGIANCE TO THE FLAG

The Pledge to the Flag is given.

2.         ROLL CALL

Roll Call is taken and all members are present.

3.   INITIAL BUDGET HEARING WITH SCHOOL COMMITTEE

Discussion and solicitation of comments from the public relating to the general goals and objectives of the development of the FY 2020-2021 municipal and school budgets.

The following members of the School Committee are present: Stephanie R. Canter, Chairwoman, Sarah E. Markey, Vice Chairwoman, Michelle Brousseau, Alycia Collins, Emily Cummiskey, Kate M. Macinanti, and Jacy A. Northup.

Also present: Robert C. Zarnetske, Town Manager, Zachary Saul, Finance Director, Aimee Reiner, Director of Administrative Services, Colleen Camp, Executive Assistant, Susan DiMasi, Director of Senior Services, Jon Schock, Director of Public Services, Linda Savastano, School Superintendent, Maryanne Crawford, Business Manager, School Department.

The Town Manager explains the purpose of tonight’s initial budget hearing being a pre-budget consultation between the Town Council and the School Committee and the solicitation of comments from the public relative to the general goals and objectives of the budget, dialogue relative to taxes, and proposed new projects and contractual obligations.

The Town Council has to provide an estimate of projected revenues for the next fiscal year and the estimates must be based on the tax base not on the tax rate.  The School Committee has to provide enrollment projections, a list of total anticipated expenses, to provide staffing numbers, charter school expenses and any other needs that might weigh on the Town Council’s decision or part of the School Committee’s budgeting process. 

The biggest issue on the horizon is an increase in the debt load with the anticipated school facilities improvement program and improvements to roads and bridges.  This will have major implications going forward. The challenge in South Kingstown is that state aid to education has declined dramatically since 1996 and we are expecting a substantial decline again this year.  As the state has been dropping its funding the town has been increasing its property tax transfer. 

The projected state aid to education for FY 2020-2021 is $4,617,000 and the projected transportation cost is $4,400,000.  After mandated transportation expenses, the State will provide only $217,000 to support the classroom instruction of 2,863 students in South Kingstown or $75.79 per student for the entire year. The municipal budget is an operating plan for all of the Town’s activities including the school, the police, the senior center and every other program or services we provide. We have to find a way to balance the needs of the School Department, the needs of the EMTs, the needs of the Police Department and the needs of the Recreation Department.  

South Kingstown is a community of very diverse demographics in terms of income and wealth.  When we talk about affordability we talk about the average income and think about the median home value.  The median is just one measure and in South Kingstown it may not be the best measure.  We have a bimodal income distribution, folks that do very well and we have folks on the other end.  Every time we raise a tax rate it may be that the folks on the high end can do just fine with that, but the impact on folks on the low end of the income distribution may not.  The same is true when you consider home values: about a fifth of the housing stock is valued at less than $250,000.  The average home value is $370,000.  When we make decisions around $370,000, we have an equal impact in terms of the rate on the folks who are living in homes with values around $250,000 and less.  If we are truly committed to the principle of equity we need to keep those folks in mind as we set the tax rate and move forward. 

We are projecting a 2% increase in state aid for FY 2020-2021.  We are seeing increases in the hotel and meals tax.  We are anticipating a modest increase of 2.75% in licenses and fees and a 1% increase in fines and charges.  We see investment income remaining level at about $275,000.  At this time, we are not proposing any funds from the unassigned fund balance to go toward the FY 2020-2021 budget.  We are proposing less than 1% in the tax roll growth.  For every penny increase in the tax rate we have $50,000, so for every $50,000 we have a penny increase in the tax rate and that is $3.70 for an average household.  Every million dollars in debt adds 10 cents to the tax rate or $37 on the $370,000 home.  If we were to go to the maximum 4% tax cap allowed under state law that is worth a $2,968,990 increase.  If we were to increase the property tax levy by 1% it would cost the average homeowner $51 more, 2% would cost $104, 3% would cost $162 and 4% would cost 215.  Inflation over the last 12 months is running at 2.3%. The School Department in its overall scheme of things at this point is proposing a 2% increase to the property tax transfer.  

Linda Savastano, School Superintendent discusses RIGL §16-2-21 which states that prior to the submission of the school budget to the appropriate town officials by the school committee, there shall be a joint pre-budget meeting where the School Committee shall share with the Town Council anticipated total expenditures, projected enrollments with the resultant staff and facility requirements, estimated enrollment and payment to charter schools, and any necessary or mandated changes in school programs or operations.

The primary need to be addressed by the FY 2021 budget is to increase all student achievement levels by increasing literacy and mathematics levels while enriching the social/emotional well-being and support system.  The goals to meet the necessary or mandated change in programs and operations are social/emotional well-being, student growth/literacy and student growth/mathematics.  Closing the gaps by increasing attendance, graduation rates, and reducing the suspension rate, especially for those students in high-risk subgroups. 

The Superintendent discusses the School Department’s goals and the recent release of the Rhode Island Department of Education (RIDE) report card.  She notes each schools deficiencies as determined by RIDE.  All of the South Kingstown Schools were rated 3 star schools with the exception of Peace Dale Elementary which was rated a 4 star school.

According to the New England School Development Council (NESDEC) report the projected enrollment for the South Kingstown Schools is 2,801 for FY 2020-2021 and the projected staffing is 450 including 21.5 administrators, 291.5 certified instructional staff and 137 support staff.  The School Department’s projections indicate that 188 students will be attending a Charter School, Vocational School or a Career Technical School for FY 2020-2021 and the School Department will be paying tuitions to those other schools.

The budget sub-committee met and discussed the high cost expenses.  Health Insurance costs are expected to rise by 6%, salaries are up by 3%, Career Technical Education and Charter School tuitions are up by 3%, transportation costs are up 3% and the program in support of students with disabilities is up 3%.