MINUTES
SPECIAL JOINT MEETING OF THE
BOARD OF FINANCE AND THE BOARD OF EDUCATION
APRIL 27, 2004
A SPECIAL JOINT MEETING OF THE BOARD OF FINANCE and the BOARD OF EDUCATION was held on Tuesday, April 27, 2004 in the Council Chambers to discuss the Board of Education budget.
Those in attendance included Mayor Owen J. Quinn, Jr., members of the Board of Finance Daniel Farley, James Zeller, Joseph Nader, James Nichol, and Bruce Cornish, Comptroller Alice Proulx, Board of Education members Chairman Ronald Bourque, Chairperson of the Budget Committee Dawn Lambert, A. Bates Lyons, Douglas O’Connell, Elinor Carbone, Kenneth Edwards and Hans Reichardt, Superintendent of Schools Dr. Gregory Riccio, Assistant Superintendent of Schools Dr. Elaine Coffin, Director of Business Services James Gaskins, Director of Human Services Gary Lambour, and Facilities Director David Bascetta.
Mayor Quinn called the meeting to order at 7:05 p.m.
On a motion by Mr. Cornish, seconded by Mr. Nader, the boards voted to review the Board of Education Budget.
Dawn Lambert gave a brief presentation on the budget. She stated that the budget committee began by establishing parameters in terms of a reasonable increase to the budget. The modifications to the process were made so the committee could present the board with a package that would not only be sound to meet the needs of all students, but could be afforded by the City of Torrington in a reasonable manner.
The committee researched the Cost of Living and the Social Security Rate for Cost of Living, which both came in under 2%. Other considerations included two major cost drivers, labor contract negotiations and insurance. The original budget presented by the staff had a 7.5% increase. The committee ultimately agreed to 4%. Mrs. Lambert indicated that the administrative staff did a tremendous amount of work in making sound decisions and making certain that this budget will assure the next year of the strategic plan. The budget committee assured the Board of Finance that the proposed budget, if fully implemented, will lead to a great deal of accountability from both the Board of Education and the Administration in terms of the next year strategic plan. Change initiatives were presented to the
Board of Education early on for analysis and to familiarize them on what they would be paying for. In the past changes had been made as far in the year as August.
She explained that Pilot Project Based Budgeting was a process in which they analyze each program individually to make certain it is advancing educational outcomes the way they expect it to. Unfortunately, the board will only be able to focus on this process after the budget season. Mrs. Lambert indicated that the board was facing almost level funding from the state for the third year in a row, which is unusual.
The strategic plan incorporated the following:
1. An annual yearly progress, which was almost a step beyond the No Child Left Behind Act
2. The re-organization of years nine through twelve and the Guidance Dept at the High School
3. Early intervention for reading by Grade 3
4. Specific change initiatives, which would address students at risk for dropping out.
Mrs. Lambert stated that the budget included no significant change in enrollment.
Director of Business Services James Gaskins made a brief presentation on how the proposed budget differed from the current budget in terms of dollars. He reported having just discovered that an adjustment will have to occur on either the city side or the Board of Education side to make up for tipping fees that were lost in the shuffle when the city changed the tipping fee structure last year.
Mr. Gaskins explained that the proposed budget of $48,312,357.00 had a 4.6% increase over last year’s budget of $46,190,190.00, on a net to gross basis. By adding the self insurance credit of $266,680.00 to last year’s budget ($46,456,870.00), the increase was reduced to 3.99%.
Mrs. Lambert stated that this budget does not significantly impact any of the change initiatives described earlier and meets the needs of all children in the district in the fairest way, which is the charge of the Board of Education.
Mrs. Lambert, as well as other members of the board, thanked Bruce Cornish for his time and dedication to the Board of Education’s budget process.
Mayor Quinn applauded the Budget Committee for looking at how effectively the dollars would meet their objectives. He commended them for an excellent, clear cut presentation.
The meeting was opened for questions and comments.
Mr. Cornish stated that, when you remove the insurance issue and the11% increase from the overall budget presentation, the Board of Education had come up with a 2.6% average in all the other lines items. It was his belief that that was a pretty good performance and he appreciated what the board went through to get there.
Mr. Cornish asked the board to explain the concept of measurable outcome in what that might mean in regard to future budgets, and inquired about downside risks from additional cuts.
Mrs. Lambert indicated that they were familiar with the changes they were going to make and how they were going to go about it, however, the measurable outcomes would only be determined in June or July of this year.
Any further cuts would come from the administration if the budget is not fully funded. Mrs. Lambert was certain that Dr. Riccio would do an impact analysis depending on the severity of the cut. She explained that the “No Child Left Behind Act” had left all schools nationally under pressure in respect to federal funding, and that was a major issue since the Middle School was under some degree of pressure under annual yearly progress to demonstrate results, specifically in the area of special education and turning around what it has done in terms of student achievement.
Dr. Riccio added, that due to the No Child Left Behind Act, they require summer school for students at the end of second grade who cannot read near grade level. The board goal and directive is for students to read on level by third grade. They also require students who don’t earn credits in high school to attend summer school. Students not earning credits in high school usually forego summer school, resulting in over-aged, under-credited students who drop out and become a drain on the city.
Dr. Riccio reminded everyone that the Board of Education scrubbed 25 teaching positions last year, and 17 or 18 positions the year before. Although they were open to suggestions, it was the board’s belief that the budget had already been scrubbed to its limit.
Mr. O’Connell indicated, that to the extent they have change initiatives in advance of setting the budget, and to the extent that they have measurable outcomes that will be used to determine if those initiatives are successful, and to make sure they can better demonstrate how well this money is spent, they will also be in a better position to make certain they don’t spend money on things that don’t work. He thought the budget process had been a very collaborative effort, one that would bear fruit for students as well as the city in the future.
Mr. Zeller inquired about the process they took in obtaining insurance figures.
Mr. Gaskins explained that the self insurance plan is one fund for both the city and the Board of Education. The process is done through our agent of records, Bozzuto & Asso., who works with an Anthem Blue Cross representative assigned to us. Together, they review claims, compile information, and look at past history to establish the claim projection. It’s a process that begins early on in the year and includes negotiations with Blue Cross / Blue Shield for the Retention Loss Insurance and the Network Access Fee.
In comparing Torrington with other municipalities, Mr. Zeller inquired whether other municipalities faced the same type of state cap restraints as Torrington, and if so, were they factored into the numbers provided?
Mr. Gaskins indicated yes to both questions.
Mr. Nader inquired whether the board had researched alternatives for benefits.
Mrs. Lambert stated that they reviewed a range of alternatives and did the best they could with respect to stop loss and co-pays. She thought they were in a good position to look ahead and perhaps that was an area where they could sit down with the city and the staff to work on agreeable solutions for additional savings.
Mayor Quinn excused himself at 8:00 p.m. and Mr. Cornish chaired the meeting.
Mr. Farley inquired as to how they arrived at the salary adjustment figure, the contingency for bargaining unit negotiations, and why it wasn’t included in the previous two years’ budgets.
Mrs. Lambert explained that the contingency figure is in this year’s budget because they are presently in negotiations. The contingency will presumably be needed once they reach a settlement.
Human Resource Director, Gary Lambour, spoke concerning the overall headcount adjustments.
Mr. Nichols inquired about the make up of grant funds.
Mr. Gaskins explained that the bulk of grants come from either the state or the federal government. However, they can come from small organizations or be limited to one-time grants from different areas. He stated, that although they anticipated an increase in grants for the upcoming year, they didn’t know what that amount was, so the grants had been budgeted in the same amount for the proposed budget as they were in the current budget.
Mr. Nader inquired about the decrease of $170,000.00 under Contracted Services.
Mr. Gaskins stated that the reduction was a result of eliminating the Gateway tuition.
Mr. Riccio stated that almost one percent of the budget was removed from the budget through one time savings created by closing Southeast, by bringing Gateway students to the High School, and by having twice the amount of retirements they usually get. He pointed out that this was a “well” that wouldn’t repeat itself.
Mr. Gaskins would provide Mr. Nader with more information on the 3000 series.
Mr. Nader inquired about the reduction of $25,000.00 in the Athletics account.
Mrs. Lambert stated that gate receipts reflected an increase in excess of $25,000.00 last year, however, there was no guarantee that it would repeat itself next year.
ADJOURNMENT #2730
On a motion by Mr. Farley, seconded by Mr. Zeller, the board voted to adjourn at 8:18 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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