Town of Lyme
Budget Committee
Fire Station
January 2, 2006
7:00pm
APPROVED: January 18 TH, 2006
Present at this meeting; School Board Members: Laszlo Bardos & Kathy McGowan. Superintendent: Gordon Schnare. Budget Committee Members: Chairman Barney Brannen, Mike Smith, Jeff Lehmann, Josh Kilham, Freda Swan, Wayne Tullar, Dave Caffry, Manning Rountree, & Gibb Cornwell. Selectman: Judith Shellnutt Brotman.
The meeting was called to order at 7:05pm by Chair Brannen.
1) Mr. Brannen provided a status check on the estimated town budget, based on the town budget as voted on 12/7/05 and the preliminary school budget submitted to the Budget Committee on 1/2/06. General discussion ensued
2) Mr. Bardos presented a summary of the school budget. The summary presentation is attached.
Mr. Bardos provided the following summary observations:
3) The Negotiated Contract with the teachers is for 3 years (slide 1)
4) Lyme School teachers’ salaries are benchmarks in the middle of the comparable set, and there does not appear to be trouble hiring talented teachers at the current compensation levels (slides 2-6).
5) Compensation for Lyme School aides appear below benchmark. The School Board is recommending increases to wages and benefits in order to retain good people, particularly in the SAU office and maintenance (slide 7).
6) The School Board is recommending funding a Sabbatical. One teacher is requesting a sabbatical during the 2006-2007 school year. The opportunity to take a sabbatical is provided for in the Negotiated Contract, at the discretion of the School Board (slide 8).
7) In general student populations at both the K-8 and high school level are stabilizing (slides 9-12).
8) Food service continues to produce losses (slide 13). Several actions are ongoing to curb these losses:
a. The price of lunches have increased from $2.00 to $2.25, effective 1/3/06.
b. Quality has improved since a new cook was hired (now serving 60-90 lunches per day)
c. A new dishwasher has been purchased to cut paper expenses
d. The School Board is recommending that the assistant cook position be eliminated. On net, these steps are expected to reduce the loss related to food service to $14,000 this year.
General discussion ensued. Mr. Bardos stated that the School Board would continue working to cut losses.
9) The preliminary recommendation of the School Board is to draw $100,000 from the high school trust fund this year and then to smooth the impact on the amounts raised from taxes by drawing an additional $175,000 (net) between 2007/2008 and 2012/2013. A general discussion of high school tuition projections ensued (slides 15-22).
a. Mr. Bardos explained that because the high school population is flat to down in 2006/2007, the draw will be used primarily to smooth expenses arising at the K-8 level.
b. Mr. Bardos explained that large increases in high school population and expenses are expected in 2009/2010 and 2010/2011.
c. Mr. Brannen and Mr. Kilham both asked whether expenses might be smoothed while leaving a greater intact balance in the trust fund.
d. Mr. Bardos emphasized that these recommendations are still preliminary and subject to change. Mr. Bardos offered to circulate the trust fund spreadsheets and invited the Budget Committee to make alternative suggestions.
10) Mr. Bardos summarized the major increases in the 2006/2007 budget (slides 23-24). Mr. Bardos again pointed out that the increases are being driven primarily by K-8 expenses rather than by high school expenses. Mr. Brannen pointed out that the preliminary budget includes a $72,000 draw from surplus that in fact will not be drawn 2006/2007. Mr. Bardos and Mr. Schnare agreed to reflect this change.
11) In 2006/2007, there will be an out-of-school special education placement, projected to cost $75,000. Mr. Schnare explained that this placement will last two years and that the town will receive reimbursement from the state, but on a delayed basis. Mr. Schnare explained that the special education population is declining but that there is still a population bubble at age 12-14 (slides 25-27).
a. Mr. Smith asked whether there was any evidence of families moving to Lyme at ages 12-14, in order to avail themselves of the special education program. Mr. Schnare answered that he did not believe so.
b. Mr. Lehmann asked what benchmarks existed for special education populations. Mr. Schnare stated that the national average was that 12% of students are in special education programs. Mr. Bardos estimated that 10-11% of Lyme students are in special education programs, down from 25% in 1999.
12) Mr. Bardos invited questions from the Budget Committee.
a. Mr. Cromwell asked why the SAU salary projections were increasing. Mr. Bardos explained that the 2006/2007 budget (in contrast to past budgets) is based on an expectation of the actual number of days Mr. Schnare will work.
b. Mr. Lehmann asked for greater detail on the line items related to the administrative staff. Mr. Bardos explained that (i) there are roughly 2.3-2.4 FTE’s, including the principal and (ii) that health insurance benefits for this group are expected to increase in 2006/2007 since two individuals in the SAU will be taking health insurance benefits for the first time.
c. Mr. Lehmann asked about line item 2700-110, which relates to parent transportation. Mr. Bardos explained that providing transportation is required by state law.
d. Mr. Lehman asked whether teacher sabbaticals were common in other districts. Mr. Schnare answered that they are. Mr. Bardos added that sabbaticals are a tool for retaining the best teachers. Mr. Kilham pointed out that this is a one-time, non-recurring expense.
e. Mr. Brannen asked whether the School Board had preliminary indications of high school choices for next year’s freshman class. Mr. Bardos answered that the School Board had taken a preliminary poll, and that this poll was reflected in the preliminary budget.
f. Mr. Brannen observed that the building reserve would be increased in 2006/2007 by $15,000 to $95,000. He asked what the target reserve size was and what the most significant needs were. Mr. Schnare answered that the target reserve was $100,000 and that the most significant near term expense was likely a new roof.
g. Mr. Lehmann asked about line item 2400-539, which relates to substitute teaching service. Mr. Schnare explained that this expense represents compensation and reimbursement for arranging for substitute teachers, when required, before the school day begins.
h. Mr. Caffry asked about the $3,000 stipend for the after-school program. Mr. Bardos explained that the School Board had not yet found a teacher who would head up this program in 2006/2007, but that the Board would continue to look.
13) Mr. Brannen told the Budget Committee that (i) its next meeting was scheduled for January 11, 2006, and that (ii) a key question for discussion at that meeting is the proposed draw of $100,000 from the high school tuition trust fund.
At 8:40 Mr. Brannen moved to adjourn. Seconded by Mr. Smith. Motion voted unanimously in favor.
Respectfully submitted,
Manning Rountree
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