TOWN OF PRINCETON, MA
Princeton Advisory Board
Meeting Minutes
10 December 2013
AB Chair, John Shipman, called the meeting to order at 6:05 p.m.
AB members in attendance were: John Shipman, Joe Lotuff, Jim O'Coin, George Handy, Dave Cruise, and Wayne Adams. Absent: Jim Comer
Guests: Invited Guests in attendance: Bob Imber (Princeton School Committee), Joe O'Brien (former Princeton Selectman and Advisory Board Chairman) Absent: Matt Lindberg (Princeton School Committee), Julie Kelly (Rutland School Committee)
Agenda
- Discuss Chapter 70 Funding
- Approve Nov 25 2013 Minutes
Minutes
Nov 25 2013 Advisory Board minutes motioned for approval by Wayne Adams, seconded by George Handy and approved by all in attendance.
Chapter 70 Funding
- Reference materials for the discussion were provided as follows pre-meeting and during the meeting:
- From Dave Cruise: MA Dept of Elementary and Secondary Education (DESE) Chapter 70 Formula Presentation
- From George Handy: Spreadsheet tracking Princeton Chapter 70 Funding allocation and Princeton funding obligations FY10-FY15. FY15 is a projection based on current and previous year trends. From Joe O'Brien: Chapter 70 Funding Overview authored by Mass Dept of State Education, 2005 http://www.doe.mass.edu/finance/chapter70/formula05_1.pdf [Same reference material Dave Cruise provided Nov 25 AB Meeting]
Reference materials for AB review were provided as follows after the Dec. 10 AB meeting:
- From Joe O'Brien Brian Allen Wachusett Regional School District (WRSD) Chapter 70 Funding Presentation, covering WRSD town specific break-downs
- From John Shipman, Dave Cruise and George Handy email from AB to Princeton Board of Selectmen to raise awareness of DESE Chapter 70 Aggrievance Fund Princeton should apply for
- George Handy, FY 13 DESE Chapter 70 Aggrievance Fund District Allocations
One of the Advisory Board objectives in this meeting was to raise Princeton School Committee Representatives awareness of the Chapter 70 funding issues for Princeton, as a member of WRSD.
Dave Cruise delivered a DESE Chapter 70 Formula presentation and led a discussion on the FY14 Chapter 70 funding obligations for Princeton, with their analysis being Princeton is one of the highest paying towns in MA for its school obligations based on per student costs and nominal percentage of Chapter 70 funding the state provides Princeton as part of WRSD. Discussion honed in the point that town within a regional school district can be unfairly obligated to higher than target contributions.
[ As recorded in the November 25 2013 AB meeting minutes: Since the Chapter 70 funding formula can unfairly skew a towns Chapter 70 school funds received from the state when there is a mix of declining enrollment, the effect of participation in a regional school agreement, and above average wealth indicators (for family income and property valuation) of the amount the town must pay, all Town of Princeton taxpayers are effected with increased taxes collected through the yearly real estate bill. One baseline objective of the formula is that no town pay more than 82.5% of the state calculated minimum school budget and the state contributes 17.5%. In the case of Princeton, the town is paying 99.5% . Towns in MA with similar or greater wealth indicators are paying in the range of 87%-90%. The effect of this inequity on the town’s taxpayers
is in excess of a half million dollars. ]
The discussion included a detailed review of the Chapter 70 Formula variables and how they are arrived/calculated, how the town of Princeton yearly operations feed into the variables for income, property value, and Municipal Revenue Growth Factor (MGRF). Generally understood that any town (within WRSD) increased source of revenue gets directed to funding school budgets based on how Chapter 70 progressively moves a town to a target of 82.5% contribution and if a town is above 82.5% contribution, the reduction formula is not aggressive; and the formula has built in inflation factors that raise the total amount needing to be contributed.
The discussion showed trend-lines of Chapter 70 target objectives for fairness not being met on the original 5 year plan, due to state budget changes and other economic factors. Trend-lines suggest fairness may be achieved over a time-period of 10-20 years if many of the variables remain constant. Recognition that these variables actually change in short-time spans, such as school costs for transportation, salaries, student enrollment numbers, etc, which leads to inequalities never being resolved through the Chapter 70 fairness objectives year-over-year.
Governor's budget plan for 2013 recognized these ongoing inequities and would help resolve them if the budget plan would pass. The plan did not pass through the state legislature (the Governor's plan required tax increases to fund it.)
Discussion covered a district can be "held harmless" for Chapter 70 funding and fair adjustments can be made with DESE allocations. Since WRSD is a region, and Princeton is a town in a district, there is no known precedent for town to be "held harmless". Worth further review is Athol received FY13 Chapter 70 Aggrievance Funds that were awarded to the town and they are part of a regional district. If Princeton were to apply for Aggrievance Funds, the award is desire to go to town of Princeton, not WRSD.
Bob Imber shared his observations of the WRSD School Committee DESE funding, priorities and recommendations as follows:
- WRSD is underfunded when compared to other school districts, on a per student analysis. WRSD is in the bottom third. WRSD would need to receive $10M-15M in additional DESE funding to raise WRSD per pupil expenditure to the state-wide average. WRSD has been efficient in reducing costs year-over-year. If $10M+ was secured it would go to replacing outdated/worn-out textbooks, new technology, and general infrastructure upgrades.
- Princeton Chapter 70 issues with inequities should be ideally supported by all five WRSD school committee members, five-town BOS and five-town AB/Finance Committees to make a multi-point appeal to DESE and Legislators for Chapter 70 foundation budget formula review, adjustments for the WRSD district and fairness for towns within a district
- Brian Allen WRSD Chapter 70 Presentation
- John Shipman to share the Sept 2013 email from AB members Dave Cruise and George Handy to BOS regarding making application to the 2014 MA DESE Chapter 70 Aggrievance Fund
- George Handy to share DESE Chapter 70 Aggrievance Fund district allocations
- Joe O'Brien agreed to assist in an advisory capacity the AB with the Chapter 70 project
- AB members in preparation for next AB meeting develop five (5) questions we want to have answered by DESE, to be convened before AB approaches BOS.
Motion to Adjourn
John Shipman, Chair, moved to adjourn the 10 December 2013 board meeting at 9:20 p.m.
Respectfully submitted,
Wayne M. Adams, AB Member
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