Budget Committee - Minutes (Final)
TOWN OF EPSOM
BUDGET COMMITTEE
DECEMBER 15, 2016
Present: Marylou LaFleur-Keane, Chairman; Dave Fiorentino, Vice Chairman; Gary Kitson, Water District Representative; Virginia Drew; Joyce Heck; Hugh Curley, Selectmen’s Representative; Ralph Weeks; Joni Kitson; Joanne Randall; Mary Frambach; Bill Yeaton, School Board Representative
Not in Attendance: Penny Graham
Other Attendees: Lucie Weeks; Dr. Gail Paludi, Superintendent; Karen Guercia; Patrick Connors, Principal; Jan Santosuosso; Joann Teunel; Robin Donovan; Linda Valley; Amber Wheeler, Business Administrator
Marylou opened the meeting at 6:30 PM.
School Budget
Mr. Connors presented the school budget highlighting some of the revised lines. The major lines affected include the high school tuition, special education, benefits, busing and special education transportation. Mr. Connors noted there is $440,000.00 in the budget for items the School District has no control over.
Mr. Connors noted that there were some items reduced. Two teachers have retired with the new hire being a savings. He noted that volunteers assist in keeping the budget down.
Line 26 – Tuition to Other Districts – This line has increased over $170,000.00 due to the number of students.
Line 39 – Supplies – Reading – Mr. Connors noted that teachers are printing some pages from the Chromebooks rather than purchasing copies for all the students.
Line 44 – Computer Supplies – This line has been increased by a $1,000.00 for additional ink.
Line 80 – Replacement Computers – The decrease is due to the Firewall purchased last year and not needed this year. 15 computers will be replaced.
Line 87 – Teacher Salaries (Special Education) – One new staff member has been hired for the primary grades. Ralph asked what has happened to discipline. It was discussed with Mr. Connors noting that not all the children are discipline problems, some have medical and other issues.
Virginia noted that $56,000.00 was less than out of district placements. Bill noted it is working.
It was noted that special education placement is from the age of three to twenty-one. Virginia asked if it included high school or out of district placement, it includes both and pre-school.
Ralph asked who requires the special education requirements – federal or state? He noted that Article 28A of the State Constitution indicates there can be no unfunded mandates. He discussed that education costs are out of control. He noted that 17% of the town’s citizens are senior citizens asking how the budget increases can be justified.
Line 105 – New Equipment -SPED – There was a piece of equipment purchased last year that was not required this year reducing this line.
It was discussed that there are 80 students from K-21 in special education programs. 80% of these students are in Epsom and 12% at Pembroke Academy.
Line 117 – Co-Curricular Supplies – The school is now doing its own uniforms that is saving money.
Line 125 – Guidance Salary – A new guidance counselor was hired this year that is saving money.
Line 134 – SPED Diagnostic – This item is paid for as it is used.
Line 141 – Nurse Salary – This line was reduced as the nurse who had been at the school over 25 years retired with the replacement hired at a lower salary.
Line 181 – Librarian Salary – Mr. Connors noted that the Librarian has been teaching Social Studies half the time. She will be retiring next year.
Line 206 – Board Salaries – These salaries were discussed with Virginia being concerned with the salaries. Bill noted that most members use the money to purchase items the students would not have otherwise.
Ralph supported the salaries as it is something that the Board can give money to the school.
Line 233 – Auditors – The school has changed Auditors thus a reduction in this line.
Line 243 – SAU #53 – Epsom’s assessment for the SAU is 17% of the total costs. A new Curriculum Coordinator position has been approved. The person will work with all the school districts.
The positions at the SAU were discussed. Gary asked what is done at the SAU that cannot be done by the town. Dr. Paludi said the town could withdraw from the SAU, but there is a process. The town would have to have a superintendent. The SAU assists with payroll and curriculum.
Gary felt the town was able to handle these items as he feels Mr. Connors and the School Board work to save money with the children suffering. Gary discussed the items the students have to bring to school.
Ralph asked the increases in the SAU salaries, Dr. Paludi noted the average is 2%, being merit based.
Bill noted the School Board worked last year to change the AREA agreement with no success.
It was noted that the new position would pay $90,000.00 plus benefits. It was discussed the position would also be writing grants. It was suggested the salary be based on the amount of grant moneys received. Hugh noted many grants have restrictions.
Gary asked the school population with Mr. Connors noting about 440 to 444 students. Gary asked the population of the other schools in the SAU. Allenstown has an increase. Gary asked if SAU personnel could be reduced. Dr. Paludi discussed the duties of the SAU personnel. It was noted that there was an approximate $179,000.00 increase in the SAU budget.
SAU salaries were discussed. Dr. Paludi noted they had two payroll specialists with one position cut. They looked at staff and changed duties of other personnel. The new position was discussed as to the duties.
Ralph asked the number of square miles in the SAU. Dr. Paludi noted there are 10 schools, but they are within 60 miles round trip of the office. Ralph asked why they have 2 superintendents; Dr. Paludi discussed the switch to two co-superintendents and no assistant.
Joanne noted that what Gary just stated made sense. She thinks there might be a need for serious conversations about where this might occur. She is concerned with paying salaries for people where there is a hard time regarding return on the investment for the students. She feels many years of bad decisions have occurred and the Board is now trying to save money.
Hugh asked if the SAU has a target of grants that the new person is looking at as he noted that grants are going down. Dr. Paludi noted they are not the same type of grants. They would be looking for competitive grants. Hugh noted these grants will not reduce costs, but expand uses.
Dr. Paludi discussed the type of grants this person might get for the schools. Mr. Connors noted that not all the grants are matching.
Virginia noted that in the past the Board looked at the SAU and felt Epsom got more than what they paid for. If we left the SAU there are certain things we would have to pay for, i.e. payroll, additional person for special education (coordination of preschoolers, high schoolers, etc.); a liaison with the Academy. She noted that we can’t give the school staff more to do.
Gary noted that Epsom’s share of the increase was $30,000.00; asking what the increase was for other towns. The SAU budget increase this year is approximately $179,000.00. The cuts were discussed. The person who left was paid $43,000.00.
Joni discussed the salary increase and the amount of the increase. Joni noted the SAU was starting someone at almost the same amount of money that our principal is making after being here 13 years.
Ralph noted that almost half the total budget is approximately $5,000,000.00 and for 80 special education students they are costing almost half the amount.
The Special Education Lines have a total of $1,536,000.00. There are other pieces in the school (salaries, etc.). It was noted that New Hampshire is undergoing review of the rules for Special Education. We have areas that the State has excess burdens over the Federal regulations with Special Education personnel commenting on this.
Lines 248 & 249 – Principal & Assistant Principal Salaries – Bill noted that there are increases for these salaries.
Line 263 – Tech Support Staff – Mr. Connors noted the Tech Support Salary dropped as a new person was hired for the position with a reduced salary.
Mr. Connors noted the school had to purchase new software programs as medical records and special education documents cannot be shared through Google.
Line 287 – Custodian Salaries – This line includes a stipend for hauling salt around the school in the custodian’s truck.
Virginia asked the number of custodians, being told 1 head and 3 other custodians.
Line 297 – Propane – The school has switched to propane for heat; the underground oil tank had been removed.
Line 311 – Field/Grounds Improvement – For many years much of this cost has been absorbed by EYAA; the school is trying to take more of the share of the costs.
Line 326 – Contracted Services – The cost of buses for pupil transportation has increased. The original increase was above 8%; with it being negotiated down to about 4.5%.
Virginia asked if there has been resurgence of looking at the high school bus. Gary noted that Chichester ran a bus, but has stopped doing it as children were not riding the bus. Bill noted that Chichester is still running a high school bus.
Lines 346 – 367 – These lines are for insurances and retirement. Health insurance has increased 2.9%.
Joni asked what was paid for insurance. Bill noted the district paid 80% for family or 2-person plan and 95% for single plan. Hugh discussed what the town pays (is based on a mid-level plan). All staff at the school are on the same plan.
Line 392 – Pace Academy Tuition – This line has been reduced based on fewer students; it is budgeted for 6 students next year.
Lines 386/387 – Transfer from Expendable Fund/Transfer to Expendable Fund – Ralph asked if the School Board would be doing a Warrant Article for special education this year. Bill noted it has been discussed; they will be making a decision next week.
Joni asked the cost of a student going to PACE Academy. Dr. Paludi said 80% is paid by the state with the $4,000.00 going directly to PACE.
Mr. Connors discussed the difference between the default budget and proposed budget which is $8,585.00.
Joni asked if many teachers would be retiring in the next few years. Mr. Connors said yes.
Ms. Wheeler discussed the information on Page 2 and 3 that outlines the tax rate, the proposed budget and estimated revenues. She discussed the Adequate Education Grant had decreased by $95,272.00 for 2015/2016.
Bill noted he should have the proposed teacher contract for the next meeting, December 20th.
Virginia noted that it is appreciated what the school personnel do to keep costs down.
The Committee did not have copies of the minutes for the last two meetings. Marylou discussed the items to be discussed on Tuesday.
Marylou asked how the School Board voted on the school budget; Bill noted that it was 4 to 1 in favor of the budget.
Being a member of the SAU was discussed and the fact that it has been reviewed in the past and no changes were made.
Lucie noted it was disappointing to her as she went to the SAU meeting and only 3 people voted against them hiring this new person.
Dave motioned to adjourn, Mary seconded the motion. The motion passed. Marylou adjourned the meeting at 8:01 PM.
Respectfully submitted,
Betsy Bosiak
Recording Secretary