Lamoille North Modified Unified Union School District FY2019 BUDGET PUBLIC INFORMATIONAL MEETING February 26, 2018 Presented by Deb Clark, Business Manager LNSU

The FY19 Budgets for LNMUUSD: Combined Elementary budget of $12,901,392; combined Ed Spending of $10,941,090; per equalized pupil spending of $16,082 Combined Secondary budget of $13,595,253; combined Ed Spending of $12,618,256; per equalized pupil spending of $15,877 Technical Center budget of $3,413,955 Providing Educational Services, Health & Wellness Services, Transportation Services, and more for: 6 Campuses, including GMTCC 1,611 Student (10/1/17 count) Grades Pre-K through 12 Ages 3 -18 plus

Elementary Level Afterschool Programming Participation: Eden – 80% Johnson – 61% Hyde Park – 44% Waterville/Belvidere – 92% Extra Programming Opportunities: Outdoor Education: Hyde Park – ECO Day, once a week outdoor classroom Lego Robotics: Afterschool program where kids explore AI, Robotics and Design through hands-on building Medtrek: Partnership with college students to explore health careers Computer Shop: Learn to build a desktop, install operating system, coding skills and problem solving Literary Magazine: Students create non-fictional short stories and poems

Extra Programming Opportunities (cont.): Gardening: Education in Farm-to-Table system and benefits Music/Art & Performing Arts: Multiple performances each year throughout the district schools Student Clubs: French, Debate, GLOW, YATST, Honor Society, etc. Athletics: Basketball, Football Partnership, Cross Country & Nordic Skiing, Track, Soccer, Dance, etc. Student Council: Giving student body voice for program and opportunities to Administration International Studies and Trips: Spain, Tanzania, Montreal Significant Community Use of all Facilities

ARTICLE XI: Shall the voters of the Lamoille North Modified Unified School District #58A (PreK-6th grade) approve the school board to expend $12,901,392, which is the amount the school board has determined to be necessary for the ensuing fiscal year? It is estimated that this proposed budget, if approved, will result in education spending of $16,082 per equalized pupil. This projected spending per equalized pupil is 2.21% higher than spending for the current year.

Budget Results To Date - Elementary Expenses (Board Approved 1-16-18) FY16 Actual FY17 Actual FY18 Approved Budget FY19 Proposed Change FY18 to FY19 Non-SpEd (includes grant funded) $10,169,887 $10,216,167 $10,290,699 $10,427,076 $136,377 Change 1.33 % Special Education $3,047,899 $3,202,974 $2,484,653 $2,474,316 ($10,337) (.42%) Total Expenses $13,217,786 $13,419,141 $12,775,352 $12,901,392 $126,040 Total Change .99%

Budget Results To Date - Elementary Revenues (Board Approved 1-16-18) FY18 Approved Budget FY19 Proposed Change FY18 to FY19 Non-SpEd $937,005 $893,711 ($43,294) Change (4.62%) Special Education $955,210 $973,996 $18,786 1.97% Total Revenues $1,892,215 $1,867,707 ($24,508) (1.30%) Reserve Funds Applied $240,515 $92,595 ($147,920) Elementary Revenue $2,132,730 $1,960,302 ($172,428) (8.08%)

Elementary Non-SPED Budget Drivers by Object: $136,377 (increase of 1 FY18 FY19 Change % Change Salaries $5,306,306 $5,446,989 $140,683 2.65% Benefits: Health Insurance $1,275,963 $1,230,041 ($45,922) (3.60%) All Other Benefits $650,820 $673,215 $22,395 3.44% Assessment $585,765 $562,187 ($23,578) (4.03%) Health Care Recapture $59,365 Purchased Services $536,519 $312,142 ($224,377) (41.82%) Debt Service: Interest (ST) $45,000 $54,703 $9,703 21.56% Interest (LT) $291,544 $416,214 $124,670 42.76% Principal $147,088 $117,088 ($30,000) (20.40%) All Other $1,451,694 $1,555,132 $103,438 7.13% Total PreK-6 Expenses $10,290,699 $10,427,076 $136,377 1.33%

Percent Increase on FY18 Budget Percent Increase on FY18 Budget Elementary Non-SpEd Budget Drivers by Function: $136,377 (increase of 1.33%) Budget Function Amount Investment Impact Percent Increase on FY18 Budget 1100 ($49,565) Purchased Services (.94%) 1400 $4,269 Salaries & Benefits 42.69% 2100 $54,250 7.29% 2200 ($15,400) (3.10%) 2300 $37,089 Assessment & Board Costs down, Increase due to Health Recapture 6.13% 2400 ($10,106) Reductions in all Areas (1.07%) Budget Function Amount Investment Impact Percent Increase on FY18 Budget 2500 $9,703 ST Borrowing Interest 21.56% 2600 $55,274 Contracted Services 5.49% 2700 ($28,772) Transportation Contracts (6.34%) 2800 ($12,030) Equipment & Software (6.26%) 3100 ($3,005) Supplies (3.88%) 5100 $94,670 LT Borrowing Interest 21.58%

ARTICLE XII: Shall the voters of the Lamoille North Modified Unified School District #58B (7th-12th grade) approve the school board to expend $13,595,253, which is the amount the school board has determined to be necessary for the ensuing fiscal year? It is estimated that this proposed budget, if approved, will result in education spending of $15,877, per equalized pupil. This projected spending per equalized pupil is 1.16% higher than spending for the current year.

Non-SpEd (includes grant funded) Budget Results To Date – Middle & High School Expenses (Board Approved 1-16-18) FY16 Actual FY17 Actual FY18 Approved Budget FY19 Proposed Change FY18 to FY19 Non-SpEd (includes grant funded) $12,096,875 $11,933,817 $11,988,326 $11,986,774 ($1,552) Change (.01%) Special Education $3,289,737 $3,319,131 $1,495,325 $1,608,479 $113,154 7.57% Total Expenses $15,386,612 $15,252,948 $13,483,651 $13,595,253 $111,602 Total Change .83%

Budget Results To Date – Middle & High School Revenues (Board Approved 1-16-18) FY18 Approved Budget FY19 Proposed Change FY18 to FY19 Non-SpEd $454,776 509,800 $55,024 Change 12.10% Special Education $556,049 $409,792 ($146,257) (26.30%) Total Revenues $1,010,825 $919,592 ($91,233) (9.03%) Reserve Funds Applied $100,000 $57,405 ($42,595) MS & HS Rev $1,110,825 $976,997 ($133,828) (12.05%)

Middle & High Schools Non-SpEd Budget Drivers by Object: ($1,552) (decrease of .01%) FY18 FY19 Change % Change Salaries $5,544,956 $5,522,645 ($22,311) (.40%) Benefits: Health Insurance $1,254,992 $1,224,378 ($30,614) (2.44%) All Other Benefits $593,065 $640,466 $47,401 7.99% Assessment $500,476 $541,448 $40,972 8.19% Health Care Recapture $51,200 Purchased Services $396,358 $370,663 ($25,695) (6.48%) Debt Service: Interest (ST) $81,000 $71,297 ($9,703) (11.98%) Interest (LT) $91,000 ($36,817) ($127,817) (140.46%) Principal $329,295 $418,600 $89,305 27.12% All Other $3,197,184 $3,182,894 ($14,290) (.45%) Total MS & HS Expenses $11,988,326 $11,986,774 ($1,552) (.01%)

Percent Increase on FY18 Budget Percent Increase on FY18 Budget Middle & High School Non-SpEd Budget Drivers by Function: ($1,552) (decrease of .01%) Budget Function Amount Investment Impact Percent Increase on FY18 Budget 1100 $66,223 Student Supports 1.26% 1300 ($73,658) Tuition: Reduced FTE (5.88%) 1400 $54,779 Salaries & Benefits 12.23% 2100 ($65,196) Software (8.01%) 2200 $10,660 Lancer I – cont. 2.19% 2300 $55,119 Healthcare Recapture SU Assessment 9.70% 2400 $10,714 1.36% Budget Function Amount Investment Impact Percent Increase on FY18 Budget 2500 ($9,703) ST Borrowing Interest (11.98%) 2600 ($17,763) Reduced Overtime (1.48%) 2700 ($3,791) Transportation Contracts (.82%) 2800 $9,574 Salaries & Benefits 4.83% 3100 -- Food Services 5100 ($38,510) LT Borrowing Interest (9.16%)

Factors in Building FY19 Budget: 6 to 9 Cents Expected rate increase for FY2019 reported by State Agencies State Property Yield - replaces Base Education Amount for Homestead Tax Rate. Property Yield for FY18 was $10,160 $9,842 $1 State Property Tax Rate $11,862 State Income Yield - Income Yield for FY18 was $11,990 State announced income sensitivity: 72.91% of LNMUUSD Homestead sites received some income sensitivity benefit this year 2% $1.629 State Non-Residential Property Tax Rate. $1.535 FY2018 Excess Spending Threshold. Currently $17,386. In FY18 no LNSU or MUUSD Districts were subject to Threshold Penalties. No penalties are currently anticipated for FY19. $17,816 $226,850 June 30, 2017 Unassigned Fund Balance Available (excludes GMTCC) $150,000 LNMUUSD Combined Reserve Funds Applied

Budget Results To Date – Ed Spending LNMUUSD 058A & B: (Board Approved 1-16-18) FY17 Approved Budget FY18 Approved Budget FY19 Proposed Budget Change FY18 to FY19 Expenses $13,592,768 $12,775,352 $12,901,392 $126,040 .99% Revenues $3,710,158 $2,054,299 $1,960,302 ($93,997) (4.58%) Ed Spending $9,882,610 $10,721,053 $10,941,090 $220,037 2.05% LNMUUSD 058B FY17 Approved Budget FY18 Approved Budget FY19 Proposed Budget Change FY18 to FY19 Expenses $15,294,099 $13,483,651 $13,595,253 $111,602 .83% Revenues $2,935,591 $1,110,825 $976,997 ($133,828) (12.05%) Ed Spending $12,358,508 $12,372,826 $12,618,256 $245,430 1.98%

Elementary/Secondary FY18 versus FY19: 2017-2018 Elementary/Secondary 2018-2019 Pupil FTE’s 676.38 788.31 680.45 794.63 Expenditures $12,775,352 $13,483,651 $12,901,392 $13,595,253 Off-Setting Revenues $2,132,730 $1,110,825 $1,960,302 $976,997 Education Fund $10,642,622 $12,372,826 $10,941,090 $12,618,256 Ed Cost/Pupil FTE $15,735 $15,695 $16,079 $15,879 Threshold Target $17,386 $17,816 Est. Rate (before CLA) 1.5487 1.5448 1.6340 1.6132 Act 46 Incentive (.08) (.06) Est. Rate (after incentive) 1.4687 1.4648 1.5740 1.5532 % of Eq. pupils at each 54.26% 45.74% 54.69% 45.31% Blended LNMUUSD Rate FY19, after incentive, before CLA: 1.5646

Budget Results To Date – LNMUUSD 058A (Elementary) Homestead Rate: (Board Approved 1-16-18) FY18 Approved Budget FY19 Proposed Budget Change FY18 to FY19 LNMUUSD 058A $10,721,053 $10,941,090 $220,037 2.05% ÷ Equalized Pupil (EqPup) 676.38 680.45 4.07 .60% Ed Spending per EqPup $15,735 $16,082 $347 2.21% ÷ Yield $10,160 $9,842 ($318) Est. Equalized Homestead Rate $1.5487 $1.6340 $.0853 Less: Act 46 Incentive ($.08) ($.06) ($.02) = Est. Equalized Incentive Rate $1.4687 $1.5740 $.1053 % of Equalized Pupils not at the Union School 54.26% 54.69% Est. Elementary Incentive Rate $.7969 $.8608 $.0639

Budget Results To Date – LNMUUSD 058B (Union School) Homestead Rate: (Board Approved 1-16-18) FY18 Approved Budget FY19 Proposed Budget Change FY18 to FY19 LNMUUSD 058B $12,372,826 $12,618,256 $245,430 1.98% ÷ Equalized Pupil (EqPup) 788.31 794.63 6.32 .80% Ed Spending per EqPup $15,695 $15,877 $182 1.16% ÷ Yield $10,160 $9,842 ($318) Est. Equalized Homestead Rate $1.5448 $1.6132 $.0684 Less: Act 46 Incentive ($.08) ($.06) ($.02) = Est. Equalized Incentive Rate $1.4648 $1.5532 $.0884 % of Equalized Pupils at the Union School 45.74% 45.31% Est. Union School Incentive Rate $.6700 $.7038 $.0338

FY2019 Estimated Homestead Rates (before CLA): Combined Educational Spending of $23,559,346, with Combined Equalized Pupils of 1475.08, and per Equalized Pupil spending of $15,972. Pre CLA Blended Rate (after $.06 Incentive) 2017 Home-stead Rate 2018 Home-stead Rate Change ‘17 to ‘18 2019 Home-stead Rate Change ‘18 to ‘19 2 Year Change after Merger .8608 + .7038 = 1.5646 Belvidere 1.6038 1.5236 (.0802) 1.5646 .0410 (.0392) Eden 1.6381 1.5562 (.0819) .0084 (.0735) Hyde Park 1.5130 1.4669 (.0461) .0977 .0516 Johnson 1.4860 (.0191) .0786 Waterville 1.6091 1.5286 (.0805) .0360 (.0445)

What would the rates look like if we hadn’t merged? Pre CLA Blended Rates 2017 Home-stead Rate 2018 Home-stead Rate Change ‘17 to ‘18 2019 Home-stead Rate Change ‘18 to ‘19 2 Year Change w/o Merger Belvidere 1.6038 1.8109 .2071 1.7116 (.0993) .1078 Eden 1.6381 1.6504 .0123 1.6938 .0434 .0557 Hyde Park 1.5130 1.5825 .0695 1.6197 .0372 .1067 Johnson 1.4860 1.5063 .0203 1.5962 .0899 .1102 Waterville 1.6091 1.5372 (.0719) 1.6365 .0993 .0274

2 Year Change after Merger What did I save on my Pre-CLA rate by merging? 2 Year Change after Merger 2 Year Change w/o Merger 2 Year Savings Belvidere (.0392) .1078 .1470 Eden (.0735) .0557 .1292 Hyde Park .0516 .1067 .0551 Johnson .0786 .1102 .0316 Waterville (.0445) .0274 .0719

Additional Considerations Regarding Estimated FY19 Tax Rates: Following is an estimate of the FY19 Homestead rate for LNMUUSD towns, however… The Legislature is currently working on an entirely NEW Education Funding formula. Should this pass, the estimated rates following will be impacted significantly. Per AOE, early reports of budgets are showing less spending than anticipated. This could lower the following estimated Homestead rate, should a new formula not pass.

Est. FY2019 Combined Tax Rates Combined Educational Spending of $23,559,346 Combined Equalized Pupils of 680.45 Elementary and 794.63 Secondary Pre CLA Rate 1.5646 ÷ Current CLA 2019 Est. Rate 2018 Rate 2017 Rate 2018 – 2019 Change per $100,000 Prop. Value 2017 – 2019 Change per $100,000 Prop. Value Belvidere 95.66 1.6356 1.580 1.672 $55.87 ($36.40) Eden 95.04 1.6462 1.566 1.660 $80.34 ($13.80) Hyde Park 103.54 1.5111 1.389 1.419 $122.49 $92.10 Johnson 99.63 1.5704 1.395 1.386 $175.29 $184.40 Waterville 87.14 1.7955 1.688 1.821 $107.88 ($25.50)

ARTICLE XIII: Shall the voters of the Lamoille North Modified Unified School District #58B Green Mountain Technology & Career Center approve the school board to expend $3,413,955 which is the amount the school board has determined to be necessary for the ensuing fiscal year?

GMTCC Mission To promote the mastery of the essential: Academic skills Technical skills Employability skills for secondary/adult students to be successful in the workforce and to continue professional learning.  

Budget Notables Offsetting increases in salaries and health benefits with cuts in nearly every line item available and controllable. Taking advantage of attrition by cutting one academic position and moving the teacher to the Special Needs Coordinator position, vacant through retirement. Academic program will reorganize with graduation required proficiencies in focus to keep students on track for graduation, career, and post secondary education. Keeping in mind possible upcoming legislation regarding skilled labor force training and Career and Technical Education funding systems. Beginning a team approach to helping sending schools with Personalized Learning Plans.

FY19 Budget Proposal FY18 $3,451,883 FY19 $3,413,955 Difference $ -37,928 Percent Change -1.10%

Pupil Assessment History FY10 $ 6,976 FY11 $ 7,163 FY12 $ 6,693 FY13 $ 6,520 FY14 $ 7,154 FY15 $ 7,065 FY16 $ 7,037 FY17 $ 7,123 FY18 $ 7,073 FY19 $ 8,696

Thank You Please Vote March 6