Duxbury’s Education Spending in Context How do we move beyond a “level services” budget in order to fund improvements to teaching and learning in our schools? 12/4/2018 Prepared by Julia Adams

What is the scale of change needed to fund improvements? The Superintendent’s FY2019 Recommended Budget, which was not included in the town’s budget, requested a $747,000 increase over ”level services”: Budget Request FTE Budget Impact 2.0 FTE Instructional Coaches 2.00 120,000 2.0 FTE Special Education Team Chairs 180,000 2.9 FTE Middle School Teachers 2.90 174,000 0.4 FTE Art Department Head 0.40 24,000 Net increase to expense accounts 249,000 Total 7.30 747,000 This amount roughly equals 1% of Duxbury’s General Fund Revenue: FY2017 General Fund Revenue = $74,270,660 1% = $742,706 12/4/2018 Prepared by Julia Adams

What is General Fund Revenue? Duxbury Schools’ revenue sources: General Fund Revenue Property Tax Levy Local Receipts State and Federal Aid MA Chapter 70 funds Entitlement grants and reimbursements Revolving Funds & Other Revenue User fees In FY2017, 86.1% of Education spending in Duxbury was drawn from General Fund Revenue. 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams To change the “holding pattern” in Duxbury’s Education spending, the growth and/or the allocation of General Fund Revenue must change. What might we learn by comparing Duxbury’s General Fund revenue base and allocation to those of other towns that support top-performing schools? Looking at Duxbury’s revenue base: What is Duxbury’s real estate tax base and rate? What is the average family’s tax burden? How do these compare to other towns that support top-performing schools? Looking at Duxbury’s revenue allocation: How does Duxbury spend its General Fund Revenue on Education? How does this compare to other towns that support top-performing schools? 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Comparing Duxbury with other towns that support top-performing school districts is possible using the financial data available from the MA DoR. “Top-performing school districts”: the top 50 districts listed in Boston Magazine’s “Best Public School Districts in Boston 2017”: https://www.bostonmagazine.com/best-school-districts-boston-2017-chart/ For regional school districts, each of the constituent towns in the district was included; thus, the municipal financial data of the “Top 50” school districts includes data from a total of 64 municipalities. All municipal financial data comes from the MA Department of Revenue’s Division of Local Services website. Municipal Finance Trend Dashboard: https://www.mass.gov/service-details/municipal-finance-trend-dashboard Revenue and Expenditure Reports from Schedule A: https://www.mass.gov/service-details/schedule-a-reports-revenue-and-expenditure-and-more 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Revenue base: Duxbury is a predominantly residential town Property classed as Residential or Open Space accounts for 95.8% of Duxbury’s property tax base. The median for towns with top-performing schools is 89.9%. Median = 89.9% 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Tax Rate Duxbury’s FY2017 Residential Tax Rate was $15.51 per $1,000 of Assessed Value; the median for towns with top-performing schools was $15.32 per $1,000. 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Property Tax Burden In FY2017, the Average Single Family property tax bill in Duxbury was $9,925; the median for towns with top-performing schools was $9,225. 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Revenue allocation In FY2016*, Duxbury spent 45.85% of its General Fund Revenue on Education; the median for towns with top-performing schools was 51.26%. *FY2016 is the most recent year for which data was available for all towns in the Top 50 School Districts. 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Revenue allocation among ”predominantly residential” towns* Among the 32 towns with a residential tax base and top-performing schools, median FY2016 spending on Education from General Fund Revenue was 53.24%. In Duxbury, the ratio was 45.85%. *Predominantly residential towns: Residential or Open Space accounts for more than 90% of all assessed value for the town. 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Revenue allocation over the prior decade In FY2017, the ratio of Duxbury’s General Fund Revenue spent on Education fell slightly to 45.73%, lower than in any of the previous 10 years. 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Moving the needle What if Duxbury were to allocate General Fund Revenue to Education at the median level of other towns with top-performing school districts? Duxbury’s FY2017 General Fund Revenue: $74,270,660 Revenue allocation ratio: 45.73% FY2017 Education Spending: $33,962,973 A] Median allocation, all Top 50 School Districts: 51.26% Education Spending at the median allocation: $38,071,140 B] Median allocation, Predominantly Residential Towns: 53.24% Education Spending at the median allocation: $39,541,700 $4,108,167 more for our schools $5,578,727 more for our schools 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Spending priorities The distribution of Duxbury’s General Fund expenditures has been affected by a rise in debt service costs related to the construction of a new Police Station, Fire Station, and Middle School/High School. Education 12/4/2018 Prepared by Julia Adams

Prepared by Julia Adams Capital Debt Exclusion Proposition 2 1/2 allows for the cost of long-term capital improvements debt to be offset by tax levy above the annual cap. 12/4/2018 Prepared by Julia Adams