The Londonderry School Board is trusting Superintendent Nate Greenberg and his administrative team to “work some magic” after being presented with a potential operating budget and warrant articles that would if approved be 1.69 percent higher than last year’s, with a 3 cent increase in the tax rate.
Greenberg and Business Administrator Peter Curro presented the 2018 budget blueprint in the Nov. 22 special budget meeting of the School Board. While board members agreed that the original number is a challenge, they agreed to work with Greenberg and his team to make as much of it happen as possible.
The working operating budget recommended by the SAU office is $71,773,909. This in itself is a -1 percent increase on the tax rate, if approved, and $995,906 higher than the FY 17 budget. It is a 1.41 percent increase over FY 17.
After discussion with administrators at the district’s six schools, the working budget was reduced by $1,039,055, Greenberg told the board.
However, Greenberg said, the SAU staff is also recommending four warrant articles including the following:
The district has reached a tentative agreement with the custodians’ collective bargaining unit, which will most likely be on the warrant. The district is currently in negotiations with the teachers’ union, allied health services union and support staff union, and if these agreements are reached, they will also be on the warrant.
Addition to the Maintenance Trust Fund. The fund has operated on a: “pay as you go” basis, with Curro and Facilities Director Chuck Zappala discussing what projects need to be done and then asking for the appropriate amount. He would like to change this process to forecast project needs six years out, he said.
Addition to the Special Education Trust Fund.
Addition to the Capital Equipment Reserve Trust Fund.
Money appropriated to conduct asbestos removal throughout the district. The asbestos in district buildings is contained and regularly inspected, he said, but the district would still like to have it removed and Zappala is getting estimates.
With the four warrant articles estimated at $1,113,474, the total amount to be raised by taxation would be $72,887,383, a 1.6 increase over FY 17 and 3 cents on the tax rate, Greenberg said.
Cost avoidance and revenues
Greenberg pointed to several efforts on the district’s part to save money and increase revenues. One money [saving tactic is to bring as many of the district’s special education students “home” as possible, creating in-house programs for them. Since 2006 the district has saved $77,800,000 in ‘cost avoidance” through in-district programs and expects to save $9,339,374 in 2018, he said.
The district’s energy savings programs have resulted in a $6 million savings since their inception and are poised to save $300,000 off the 2018 budget, he said. The district’s energy consumption is 30 percent below the state average, he said.
The Memorandum of Understanding with the Hooksett School District and tuition revenues from Auburn and Candia have brought in $1,040,714, he told the board. Tuition revenues offset the tax rate by 27 cents, and the total of “cost avoidance” and revenues saves the district $10.8 million and $2.83 off the tax rate.
Other factors
Other factors affecting this budget include the phasing-in of a new elementary math program; the expansion of mobile computer labs; increasing Internet security; and the downshifting of state employee retirement costs. The district’s portion of state retirement will cost $529,916 this year, he said.
A student enrollment that is on the rise will also affect the budget through staffing changes, Greenberg said. From 2006 to 2017, Londonderry saw a 1,129 decline in its student population. With better economic times and new housing development in Londonderry, the district as of Oct. 1 had 58 more students than it did last year. That includes 108 more in grades 1-5 than were projected, and 45 more in kindergarten.
During the “drop” from 2006 to 2017, the district reduced its workforce by 60.8 certified staff members and 78.4 non-certified. They did add some special ed positions to staff the in-house programs, he said, and the net reduction was 137.7.
Next year’s projected enrollment is 4,423, an increase of 12, he said. But another 95 are expected, mostly in the elementary grades, from new construction. “We have potentially 4,578 students for next year,” Greenberg said.
He is requesting four new elementary teacher positions, one each for the district’s three elementary schools and a fourth in readiness for whichever K-5 school sees a spike in enrollment. In addition, he is requesting a Pupil Services Coordinator for the district, pointing out that the district is seeing more Special Education, 504 and ESOL students. He plans to reduce two high school positions, based on enrollment, for a net increase of three positions at $255,238.
Curro reminded the board that the proposed budget will also fund 6.4 positions approved by the board after the last budget season closed, and that now have to be picked up by the regular budget.
However, he said, the construction bond for the Middle School expansion is coming off this year.
The SAU is also requesting two more buses, one for regular education and one for special education, Curro said.
“This is going to be tough,” board member Steve Young said. “It is $564,000 over the default budget. It’s been 12 to 13 years since we’ve been over default.”
“It’s hard to overlook that this is a big budget,” Chairman Nancy Hendricks agreed.
“We have our work cut out for us,” member Leitha Reilly said. “It’s hard work, but I trust we’ll get there.”
The board’s next meeting is Tuesday, Dec. 6, at 7 p.m. in the Town Council chambers. The board will discuss and tweak the budget in meetings Dec. 8,13 and 15, also at 7 p.m.