March 4, 2013Norwich FY14 Proposed BudgetSlide 1 Norwich School District Proposed Budget For the School Year

March 4, 2013Norwich FY14 Proposed BudgetSlide 2 Article 5: Long Term Borrowing Replace roof top ventilation units$130,900 Replace Classroom Unit Ventilators$120,000 Replace Major Roof Section$175,000 Contingency$24,100 Total$450,000

March 4, 2013Norwich FY14 Proposed BudgetSlide 3 Article 5: Long Term Borrowing 10 Year Costs Year 1 - $56,700 Year 2 - $55,530 Year 3 - $54,360 Year 4 - $53,190 Year 5 - $52,020 Year 6 - $50,850 Year 7 - $49,680 Year 8 - $48,510 Year 9 - $47,340 Year 10 - $46,170

March 4, 2013Norwich FY14 Proposed BudgetSlide 4 Article 6: “Conditional Article” Should long term borrowing article fail, will the voters raise and appropriate $85,000 to pay for: One unit ventilator$10,000 One rooftop ventilator$18,700 Set aside funds for roof repair$55,000 Contingency$1,300

March 4, 2013Norwich FY14 Proposed BudgetSlide 5 Norwich School District Proposed Budget For the School Year

March 4, 2013Norwich FY14 Proposed BudgetSlide 6 NORWICH SCHOOL DISTRICT Tax Rates Budgets EnrollmentState of Vermont Property Valuations

March 4, 2013Norwich FY14 Proposed BudgetSlide 7 Components of Tax Rate Change

March 4, 2013Norwich FY14 Proposed BudgetSlide 8 Components of Tax Rate Change (without Base Amount Change) 1.1 Cent, 1.24%, increase in Homestead Tax Rate with no change in the Base Amount; all articles, and Dresden Labor Contracts

March 4, 2013Norwich FY14 Proposed BudgetSlide 9 NORWICH SCHOOL DISTRICT Taxes The Homestead tax rate is expected to increase 0.47% from $ to $ For those eligible for tax rebate system, percentage estimated to increase 0.05 percentage points, from 3.31% to 3.36% of income. Non-residential tax rate estimated to decrease 3.06%, from $ to $ (Including all Norwich articles, excluding impact of Dresden labor contracts.)

March 4, 2013Norwich FY14 Proposed BudgetSlide 10 NORWICH SCHOOL DISTRICT Taxes If the Base Amount increases to $9,151, as has been approved by the Vermont House, but not yet by the Senate, then the homestead tax rate will drop to: $ from current year’s $ a 6.1 cent drop, or 3.49% drop (Including all Norwich articles, including impact of Dresden labor contracts.)

March 4, 2013Norwich FY14 Proposed BudgetSlide 11 Marion Cross School Enrollment History & Forecast

March 4, 2013Norwich FY14 Proposed BudgetSlide 12 Enrollment and Staffing Actual Actual Actual Budget Enrollment Teachers Regular Classroom Teachers Special Subjects All Other Staff Total

Teacher Contract Negotiations March 4, 2013Norwich FY14 Proposed BudgetSlide 13 Board and Teachers have reached settlement for a contract for the next two years. 2.25% increase in salaries, including both base and step Increase in health insurance premium co-pay from 14% to 15% and then 16%. Reduce personal leave allowance per school year from five days to four Limit professional leave days at four per school year. Clarifying language around bereavement leave, sick bank, and enrichment grants. Additional cost items are included in the proposed budget.

March 4, 2013Norwich FY14 Proposed BudgetSlide 14 Support Staff Contract Negotiations In the fall of 2011 the Marion Cross Support Staff petitioned the Vermont Labor Board to form a bargaining unit. Following a vote, the petition was granted. After about a year of negotiations, the Board and the Support Staff are close to agreement on all issues. We are confident that a possible settlement can be accommodated within the proposed budget.

Marion Cross School Budget Analysis March 4, 2013Norwich FY14 Proposed BudgetSlide Change% Expense Budget $4,902,189$5,163,548$261, % Less Revenues$1,233,822$1,315,294$81, % Net Expense$3,659,108$3,848,254$189, %

Significant Expenditure Changes ($000’s) Special Education In Total$172 SAU Assessment$15 Building Improvements($52) Debt Service$57 Transfer to Building Maint Reserve$25 Fuel Oil$17 All Other$27 Total Expense Change$261 March 4, 2013Norwich FY14 Proposed BudgetSlide 16

Significant Revenue Changes ($000’s) Tuition Income($35) Special Ed Expense Reimbursement$17 Special Ed Extraordinary Reimb$124 Construction Aid Transfer($25) All Other$1 March 4, 2013Norwich FY14 Proposed BudgetSlide 17

March 4, 2013Norwich FY14 Proposed BudgetSlide 18 Tax Rate Calculation 1 (including all articles and Dresden Labor Contracts) ItemActual Estimated Change% Change 1Marion Cross School$4,902,189$5,163,548261, % 1a Deficit Reduction Article25,0000 n/a 2 plus Dresden Assmt6,445,7216,553,170107, % 3 less Revs & Fund Bal1,233,8221,315,29481, % 4= Ed Spending10,139,08810,401,424262, % 5divide by Equalized Pupils % 6equals Ed Spend per Eq Pupil16,03016,426$ % 6aless Debt per Pupil1,3841,422 7equals Ed Spending for Purpose of Excess Spending Calc 14,64614,994 8less Exc Spending Threshold14,84115, % 9 equals above (below) Threshold (195)(587)

March 4, 2013Norwich FY14 Proposed BudgetSlide 19 Tax Rate Calculation 2 (including all articles and Dresden Labor Contracts) ItemActual Estimated Change% Change 10Ed Spending per Pupil16,03016,426$ % 11divide by Base Amount$8,723 $00.00% 12equals District Spending Adjust % %4.534%2.47% 13times Statewide Ed Tax Rate$0.89$0.94$ % 13aequals Equalized Homestead Tax $1.6355$1.7748$ % 14divide by CLA93.30%99.73%6.4%6.89% 15equals Est’d Nominal Tax Rate $ % 16Income Percentage3.31%3.39%0.08%2.42% 19Nominal Non-Resid Rate$1.4791$1.4439($0.0352)(2.38%)

March 4, 2013Norwich FY14 Proposed BudgetSlide 20 Per Pupil Cost Comparison--Elementary Per Pupil Cost (Ranks 79th out of 212 elementary schools reported) $11,523 Schools ranked immediately above and below $11,523: Miller’s Run (Sheffield, Vt)$11,581 Manchester$11,491 (Source: Vt DOE Allowable Tuition Report for the School Year)

NECAP (2011 Year Data) March 4, 2013Norwich FY14 Proposed BudgetSlide 21 Marion Cross State of Vermont Reading90%74% Math90%65% Writing84%46% Science80%53%

March 4, 2013Norwich FY14 Proposed BudgetSlide 22 Addition of French at Grade 3 Possible Sharing of Special Ed Therapy Time across SAU Districts Possible Sharing of New England Child Center In-District Program with other SAU Districts rather than out-of-district placements Program Innovations

Final thoughts: Budget increase is due almost entirely to special education expenses, which are almost entirely reimbursed by the state. Marion Cross is an attractive choice for families as evidenced by our rising enrollment. Marion Cross continues to provide an excellent educational program, while its costs are low compared to other districts in the state. March 4, 2013Norwich FY14 Proposed Budget23

March 4, 2013Norwich FY14 Proposed BudgetSlide 24 Components of Tax Rate Change (without Base Amount Change) 1.1 Cent, 1.24%, increase in Homestead Tax Rate with no change in the Base Amount; all articles, and Dresden Labor Contracts

March 4, 2013Norwich FY14 Proposed BudgetSlide 25 Questions?