LAKE REGION SCHOOL DISTRICT Board Budget Workshop March 22, 2017 There was a Board Budget Workshop on Wednesday, March 22, 2017 at 6:00 p.m. in the Great Room at Lake Region High School. Janice Barter called the meeting to order at 6:00 p.m. Board members present were: Debra Albert, Ben Bowditch, Stan Buchanan, Karen Eller, Tom Hancock, and Joseph McMahon. Nina Stoddard, and Karla Swanson Murphy were excused. Alison Caulfield, Beth Chaplin, and Cindy LeBlanc were absent. Administrators present were: Pat Hayden, Beth Peavey, Sherrie Small and Alan Smith, Superintendent of Schools Others present were:

Julie Johnson and Wayne Rivet.

Superintendent Smith mentioned that the Finance Committee was able to get the budget down below 3%. Sherrie Small shared the following information: A packet of information was distributed which included the following: 2017-18 Proposed Budget Summary 2017-18 Proposed Budget Reductions 2017-18 Object Code Report 2017-18 Revenue/Tax Comparison Possible Projects to be Paid from Undesignated Fund Balance/Capital Reserve Sherrie Small shared the following information:          



The current budget is at a 2.75% increase. The Class Size Reduction grant has been used at Stevens Brook Elementary School in the past. For 2017-18, it will be shifted to Songo Locks School. One teacher was reduced from Stevens Brook Elementary School. Songo Locks School is only increased by negotiated salaries and benefits. Lake Region High School is being reduced by one teacher. There is a retirement and the position is not being replaced. Special Education – There is no new staffing or reductions. Lake Region Vocational Center – The Fire Science program is only needed for half-time so it is being budgeted as a half-time position. There are no new programs. Co-Curricular and Extra Curricular Activities – Stipends have increased at Lake Region High School due to an increase in participation. Student and Staff Support includes the Library services, Guidance services, Health (school nurses), 504 and Student Assessment, Technology and Improvement to Instruction. As there are staff changes in guidance, there was a reduction and there is a reduction in District-wide Curriculum due to focuses in the future. System Administration includes the School Board, Superintendent’s Office, Business Office, unemployment, all costs related to personnel functions (payroll) and processing and payment of all purchases within the District, advertising, legal, and audit fees and printing of the annual report.

Board Budget Workshop       

March 22, 2017

Page |2

There is a decrease due to a software upgrade in 2016-17 and an increase in salaries and benefits. School Administration which funds the school principal offices was reduced by one position at the high school. Transportation – two buses were requested. One bus was eliminated from the initial review process. The other bus was removed to be funded with the fund balance. Facilities and Maintenance - Mr. Madura had requested $600,000 in new projects. The list was prioritized and reductions of $300,000 were made. Debt Service – Reduction of interest costs. All Other Expenditures which includes the School Food Service Program and the Community School Use program. This stayed the same. The final budget total is $30,187,620.

Possible budget reductions: A lot of the items on the list were budget requests which could not be supported. There was $1.1 million in reductions to get to the 2.75% increase. Superintendent Smith shared the following:    



The elevator at the high school has to get done. The cost is $85,000 and this will be taken from the Capital Reserve Account upon the approval of the voters. People have requested to get the budget down and reduce taxes. It is recommended that the Songo Locks School portable costs, one or two buses, and the parking lots at Songo Locks School and Lake Region Middle School projects be paid from the Fund Balance. The 3% rule is over a 3 year period. If we use the fund balance funds, we will be more in line with that percentage. The Board will need to request an amount to be taken from the fund balance and put that amount into the Capital Reserve fund and then voters will have to approve spending that amount from the Capital Reserve fund as specified.

There was a discussion on the Reduction List. The Object Code Budget showed that salaries and benefits equal 78% of the increase.  



Preliminary Estimated Tax assessments were reviewed. The amounts are higher than in the past. The District does not have control over how the numbers come out. It is determined by a formula created by the State. The 279 report from the State may not be available until the end of June. As we are a low receiver, if the State adds money to the budget, the District has in the past lost money. The numbers at this time are more proportional for the towns than they were last year. Health Insurance – The District should know what the highest rate possible will be by the end of the week. The District usually falls at the higher percentage rate.

Possible projects to be paid by the Fund Balance

Board Budget Workshop

March 22, 2017

Page |3

Once the final numbers are determined for the parking lots, projects can be looked at to see what can be paid from the fund balance.    

Two more budget meetings are scheduled for Monday, March 27 at 6:30 p.m. and Wednesday, March 29 at 6:00 p.m. There will definitely be a meeting on Monday, March 27 but the March 29 meeting may not be needed. A meeting will be scheduled to meet at each Towns Selectmen’s meeting. The District Budget Meeting is scheduled for May 16, 2017 at 6:30 p.m. in the gym at Lake Region High School. The Budget Validation Referendum is scheduled for May 30.

It was suggested that the assessment numbers from last year be available to Selectmen for their March 23 meeting. The meeting adjourned at 6:30 p.m. _______________ Secretary _______________ Date Approved