Pre-Budget Consultation FY2020 Town/School Revenue Conference Town of Middletown Pre-Budget Consultation FY2020 Town/School Revenue Conference January 22, 2019 Pre-budget Consultation

Pre-budget Consultation § 16-2-21 Pre-budget consultation – Annual reports – Appropriation requests – Budgets At least sixty (60) days, but not more than ninety (90) days, prior to the formal submission of the school budget to the appropriate city or town officials by the school committee, there shall be a joint, pre-budget meeting between the school committee and the city or town council(s). At or before this meeting: The highest elected official of the city or town shall submit to the school committee an estimate, prepared in a manner approved by the department of administration, of projected revenues for the next fiscal year. In the case of the property tax, the projections shall include only changes in the property tax base, not property tax rates The school committee shall submit to the city or town council a statement for the next ensuing fiscal year of anticipated total expenditures, projected enrollments with resultant staff and facility requirements, estimated enrollment and payments to charter schools, and any necessary or mandated changes in school programs or operations January 22, 2019 Pre-budget Consultation

Required Communication – Town Council Anticipated total general fund revenues are estimated to be $75,513,760, a $3.180 million or 4.4% increase over the prior year. Changes in municipal revenue, $2.304 million, are outlined on the next slide. January 22, 2019 Pre-budget Consultation

Required Communication – Town Council January 22, 2019 Pre-budget Consultation

Required Communication – Town Council The State’s Basic Formula Aid for Education program was implemented in 2012, and will continue through FY2021. The average annual decrease in Formula Aid is $168,914, and the cumulative loss of revenue in Formula Aid (including projected FY2020) is $1,351,315. The average annual decrease in Group Home Aid for this same fiscal period is $60,000, and the cumulative loss of revenue in Group Home Aid is $480,000. As of January 2019, all group homes in the community are now closed with a loss of revenue in FY 2020 of $183,909. January 22, 2019 Pre-budget Consultation

Required Communication – Town Council Anticipated net tax base is estimated to total $3,210,800,000, a $2,758,259 or 0.09% increase over the prior year. These numbers are early estimates and subject to change based on information expected from the State Vehicle Value Commission in February. January 22, 2019 Pre-budget Consultation

Required Communication – Town Council RIGL 16-2-21(d)(vi) requires: The budget adopted and presented by any school committee for the fiscal year 2013 and for each fiscal year thereafter shall not propose the appropriation of municipal funds (exclusive of state and federal aid) in excess of one hundred four percent (104%) of the total of municipal funds appropriated by the city or town council for school purposes for the previous fiscal year. Fiscal Year Appropriation Statutory Maximum % Increase Statutory Maximum Appropriation Statutory Maximum Annual Increase FY2019 $26,510,694 FY2020 4.00% $27,571,122 $1,060,428 January 22, 2019 Pre-budget Consultation

Required Communication – Town Council January 22, 2019 Pre-budget Consultation

Required Communication – School Committee Middletown’s current enrollment is approximately 2,138 students, as of January 16, 2019. This is approximately 11 students less than the enrollment at this time last year.  Projected enrollment for 2019-2020 per NESDEC data is 2,031. Resulting staff is estimated to be 294.95; we anticipate adding 1.5 FTEs for ELL Does not include NCRSEP/Regional staff FTE of 12.7 Category FTEs Instructional-certified/direct instruction 185.5 Instructional-certified/leadership 3.0 Instructional – non-certified/assistants 49.3 Administrative-central administration 4.0 Administrative-school based 6.0 Maintenance 22.0 Clerical/Other 17.2 Bus Monitors 8.0 January 22, 2019 Pre-budget Consultation

Required Communication – School Committee Resulting facility requirements are estimated to remain unchanged The School Department needs to begin developing its next five- year facilities plan: The current plan expires in FY2021 The Town should contemplate taking advantage of the recently passed $250M school-renovation bond and related Housing Aid bonuses that the Town may be eligible to benefit January 22, 2019 Pre-budget Consultation

Required Communication – School Committee Anticipated total expenditures are estimated to be $43,895,622, a $1,937,158 or a 4.6% increase over prior year (due to the addition of staff, contracted increases and estimated increases in overall operation/maintenance costs as well as projects under the capital improvement plan). January 22, 2019 Pre-budget Consultation

Required Communication – School Committee Estimated enrollment in charter/state schools is 15 students, an increase of 2 students over the prior year; estimated payments to these schools is $164,890. (Estimate based on current enrollment; RIDE has not released projected enrollment or FY20 tuition rates.) Necessary or mandated changes in school programs or operations include those related to: RIDE enforced regulatory changes for English language learners requiring that Middletown Public Schools hire 1.5 FTEs of ELL Teachers Maintaining Middletown High School certified Career and Technical Education Programs for two Pathways Ongoing efforts to implement new high school graduation requirements Exploration of Pre-K Exploration of P-Tech Green Economy – Farming Program Implementation of STEM Library Media Maker Space Revitalize Planetarium as a school/community resource Continued assessment/improvement related to School Safety January 22, 2019 Pre-budget Consultation

Town Council Budget Priorities Cost efficiencies: Actively seek cost efficiencies to improve Middletown’s quality of life and free up resources to use for strategic initiatives Citizen Engagement: Utilize social media and other mass communication to engage citizens and promulgate community awareness, safety and cooperative input Strategic Plan: Establish a vision for planned community development, public safety, recreation, infrastructure, livability. Keep taxes low, keep our streets safe, and provide an engaging environment for growth and prosperity Economic Partnerships: Nurture positive connections and a dynamic relationship with current Middletown business owners. Promote a marketing plan to identify and attract new business prospects January 22, 2019 Pre-budget Consultation

School Committee Educational Priorities The many positive changes are the result of a commitment to high expectations, focused collaboration, professional growth & development, and holding one another accountable to the growth and success of all students. K-12 Literacy Development Literacy Coaches Research Based Intervention Tools Continue to Provide Research Based Interventions K-12 Mathematics Development Mathematics Coaches K-12 Digital Transformation Technology Coaches Curriculum Revision & Instructional Strategies to Support Deeper Learning Continue to Provide Support for Transformation & Digital Learning Continued Implementation K-12 STEAM/PLTW/Makerspace Special Education Closing the Gap January 22, 2019 Pre-budget Consultation

School Committee Educational Priorities The many positive changes are the result of a commitment to high expectations, focused collaboration, professional growth & development, and holding one another accountable to the growth and success of all students. K-12 World Language Continue to Develop K-3 Spanish Curriculum Continued Implementation of 4-7 French & Spanish Curriculum Continued Implementation of Level One in Grade 8 Commitment to Support Knowledge of Global Economy, Knowledge of World Language and Cultures Professional Development Continue Schedule that Supports PLC/CPT Interventions Assessment Literacy & Grading Practices/Proficiency Based Grading Common Core State Standards-Implementation of Units & Instructional Shifts Next Generation Science Standards-Continued Implementation Leadership & Increase Capacity Safety, Security & Health Bond Removes Barriers for Building Accessibility Renovates Failing Building Windows, Doors and Roofs Repair Insufficient Ventilation and Site Circulation Classroom Redesign January 22, 2019 Pre-budget Consultation

Pre-budget Consultation Challenges & Risks Managing the ‘claw-back’ associated with the Tax Incremental Financing Program Stagnant municipal & education revenue streams Potential legalization of recreational marijuana Unknown impacts associated with budget shortfalls in the State budget Increasing labor costs: Council 94: 2.5% IAFF: Pending IBPO: 2.0% NEARI-Library: Pending NEARI-Municipal Workers: 2.0% NEAR-Teachers: 2.5% NEARI-Teacher Assistants: 2.5% Teamsters: 2.0% January 22, 2019 Pre-budget Consultation

Pre-budget Consultation Challenges & Risks Increasing post-retirement expenses Unfunded mandates Environmental issues Capital replenishment January 22, 2019 Pre-budget Consultation

Next steps: Budget Deadlines and Meetings March 22, 2019 School Committee submission of FY2020 School Department Budget Request April 1, 2019 Town Administrator’s FY2020 Proposed Budget Submitted to the Town Council via the Town Clerk May 22, 2019 First Public Hearing on FY2020 Consolidated Budget May 29, 2019 Second Public Hearing and Budget Adoption January 22, 2019 Pre-budget Consultation