By Curt Peterson
Windsor Central Modified Unified Union School District Superintendent Mary Beth Banios and the finance committee gave board members a taste of challenges faced in creating the FY2021 budget at the Monday night School Board meeting, on Dec. 9.
The current budget, ending June 30, 2020, is about $20.1 million, which, based on enrollment of 909 equalized pupils, is $17,994 per pupil—just below the state mandated maximum cost per pupil.
Exceeding the state mandate incurs a $1 penalty for every $1 in excess spending.
The state allowed the district to average the lower per pupil cost of the elementary schools and the higher middle/high school cost, thus avoiding the penalty.
Vermont’s statewide benchmark per pupil cost won’t be available until January, but Banios expects it will reflect the increases incurred at the state level.
Paige Hiller, board co-chair from Woodstock, said the budget process will be broken down into smaller segments this year, as working on the entire package is “overwhelming.”
Board co-chair Jennifer Iannantuoni from Killington said, “contractual expenses,” such as health benefits, negotiated on a state-wide basis, have risen significantly.
Statewide, the health insurance premium increase is 12.9% — the district’s projected increase is 14.2%.
Salary increases, negotiated between the state and the teachers’ union, are expected to be 3.5%, although bringing salaries in line across the district will mean a bigger local net increase.
Finance and Operations Director Mike Concessi said substitute teachers are a big expense. Kelly Services currently provides substitutes—Banios said staff find arranging subs is difficult and time-consuming.
Banios and Concessi are analyzing whether having two full-time substitutes would be more cost-effective.
Banios outlined desired “additional educational investments,” including curriculum training for department chairs, summer training for educational coaches, a transportation director, costs associated with increased professional development day substitutes and a theater tech associate, at a total cost of $234,000.
Costs of mitigating moisture issues at The Prosper Valley School, which has been closed for a year, will also be considered.
Bob Crean, a resident spectator at the meeting, suggested spending $6,000 to test results from recent drainage work, and $35,000 for a “deep clean” to remove any mold before committing to $100,000 for a new HVAC system.
Killington board member Jim Haff, who serves on the finance committee that will be primarily responsible for the budget, said the budget increases discussed will impact the district’s education tax significantly, possibly raising Killington’s education tax from $1.62 this year to over $2 next year.
“It would increase our cost per pupil $500 just to operate TPVS,” he told the Mountain Times after Monday’s meeting, “without increasing the number of credited pupils in the district – just moving them from Woodstock to Pomfret.”
Haff cited Town Manager Chet Hagenbarth’s recent report to the district board that Killington real estate prices have risen 20%, possibly increasing the town’s common level of appraisal penalty by 15% or more. (CLA adjusts for the difference between a town’s property assessments and actual market values).
On Dec. 9, Concessi alluded to significant efforts invested to bring the district’s books in order. According to Haff, actual revenue received was never accurately recorded and only fiscal year 2018 has been updated so far.
“An outside firm has been brought in to enter revenue figures,” Haff said. “We may find out revenue is actually way off from what the FY2019 budget and the current budget anticipated.”
“We ran out of tax anticipation note funds [money often borrowed against anticipated tax revenues and state disbursements by towns and school districts] in October — the earliest yet,” he said. “The district put payments other than payroll on hold until they had more accurate information.”
The board also unanimously approved raising student and adult meal prices starting in September for the first time in three years.
A vigorous discussion about required capital reserves for campus buildings revealed while there are very modest reserve funds attached to some schools, the district has been significantly under funding maintenance and replacement funding for years.
“The draft budget includes $50,000 for capital reserves,” Haff said, “but industry standards would suggest putting away between $1.2 million and $1.4 million every year. If we don’t address this now, we’ll be having the same conversation next year.”
