1. FY15 Budget Draft Update: Including Academic Program Priorities and Abrahams Report Analysis PRESENTATION TO CHATHAM FINANCE COMMITTEE SCOTT CARPENTER, SUPERINTENDENT KATHLEEN ISERNIO, BUSINESS MANAGER FEBRUARY 6, 2014

2. Realizing the “Promise of Monomoy” The promise was that regionalization can significantly improve the curricula available in our schools and enhance the educational experiences of our children. Within this promise was an understanding that curricular improvement would be done in a cost effective manner for our taxpayers. Realizing this promise was paramount in developing the educational program for Monomoy Regional Middle School and Monomoy Regional High School. First and foremost is to ensure that regionalization improves the curriculum and opportunities for children. Second is to expand opportunities in a cost effective manner

3. Middle School Curricular Priorities, Changes & Additions Provide teaming of core academic teachers in 5 th through 7 th grade Expand World Language offerings by adding Mandarin, introducing it first in the middle school Add 2.0 FTE Enrichment (Gifted & Talented) staffing in humanities and STEM to provide students ready for additional academic challenge with greater rigor Create 1.0 FTE Math Specialist to bolster math pedagogy and student achievement Incorporating word processing, presentation software, and other technological tools throughout the curriculum, beginning in elementary school Add computer programming at the middle school level as part of STEM enrichment Add digital and media arts in the middle school UA program

4. High School Curricular Priorities, Changes & Additions Create an 8 th grade team of core academic teachers focused on supporting a successful student transition to high school Expand the Advance Placement program to include up to 20 courses, including all AP courses currently offered in Harwich High and Chatham High, along with adding select AP courses in Physics, Economics, World Languages and the arts. Expand World Language offerings at the high school by adding Mandarin Add high tech electives that better prepare Monomoy graduates for the digital age, including programming, game design, and web technologies and media/film courses Add boys and girls lacrosse and 8 th /9 th grade teams

5. Middle School Reductions from Current Staffing Principal -1.0 FTE Administrative Assistant -1.0 FTE Part-time SPED Admin. Assistant -.25 FTE Library Assistant -1.0 FTE Custodian -1.0 FTE Cafeteria staff -3.0 FTE School Nurse -1.0 FTE Teachers:  World Language -1.0 FTE  Humanities/ELA/Social Studies -1.0 FTE  Computer Technology -0.8 FTE  Wellness (Phys. Ed/Health) -1.0 FTE Total Middle School reduction -12.05 FTE

6. High School Reductions from Current Staffing Principal -1.0 FTE Guidance Administrative Assistant -1.0 FTE Part-time SPED Admin. Assistant -.25 FTE Teachers:  Math -1.0 FTE  ELA/Tech Ed -1.0 FTE  Science -1.0 FTE  World Language -1.0 FTE  Wellness (Phys. Ed/Health) -1.0 FTE  Moderate Needs SPED -1.0 FTE Total High School reduction -8.25 FTE

7. Additions Beyond Current Staffing Mandarin teacher +1.0 FTE (split between the middle and high school) District-Level DESE Reporting Support +0.5 FTE Intensive Special Needs teacher +1.0 FTE ELL Teachers +2.0 FTE These 4.5 FTEs are included in FY15 Draft Budget.

8. Total Staffing Reduction Middle School Reductions -12.05 FTE High School Reductions -8.25 FTE Additions +4.5 FTE FY15 Budget Change in Staffing -15.8 FTE These reductions are in addition to 10 staff positions reduced since the regionalization vote, as the Central Office consolidated and the district positioned itself for full regionalization, placing total staff reduction through regionalization at -25.8 FTE.

9. Foundation Enrollment Monomoy’s assessment to each town is based on a three- year rolling enrollment, published by DESE, of all children towns are financially responsible for educating. Changes in enrollment also impact transportation reimbursement from the state and how each town is assessed for school debt. The three-year rolling average is 27% Chatham and 73% Harwich. Enrollment at the lower grade levels suggests that Chatham’s contribution to the three-year rolling average will slightly drop in the upcoming years.

10. 24% of Monomoy’s resident students come from Chatham. 76% from Harwich.

11. Chatham children represent 37% of Private, 35% of Charter, 42% of Choice, and 23% of Tech. The 254 students opting for Charter Schools or choice to other schools cost the Monomoy district $1,870,328 in tuition.

12. Monomoy Regional High School Enrollment Grade Current Harwich School Current Chatham Schools Harwich & Chatham Charter & Choice Out 710443 21 811538 34 99026 37 108032 39 116825 42 TOTAL 457 (includes 57 choice) 164 (includes 23 choice) 173* Anticipated MRHS Enrollment 621 (includes 80 choice) Maximum Potential 794 * 173 students opting to attend public schools in other districts or charter schools costs Monomoy about $1.2M Per MSBA Executive Director, Monomoy Regional High School’s state funding is not affected if MRHS enrollment is below 700 students.

13. FY15 Budget Assumptions Includes all staffing reductions, additions, and program enhancements previously indicated in this presentation Level funded State Aid, Circuit Breaker, and Regional Transportation reimbursement – intentionally not using the Governor’s numbers, yet… Health Insurance set at 1.8% increase Transportation bid to be opened 2/12/14 School Choice and Charter tuition “out” use draft FY15 Cherry Sheet Utilities for new Monomoy Regional High School estimated from similar “model” schools’ utilities use

14. DRAFT BUDGET AS OF 2/5/14 FY 15FY 14Difference% Change Total Payroll$19,828,555$20,060,584($232,029)-1.16% less Payroll supported by School Choice$2,057,722$2,334,293($276,571)-11.85% Payroll supported by General Fund$17,770,833$17,726,291$44,5420.25% Operating Expenses$13,778,206$13,575,256$202,9501.49% less Operating Expenses supported by Circuit Breaker$675,842$601,098$74,74412.43% Operating Expenses supported by General Fund$13,102,364$12,974,158$128,2060.99% Total General Fund Draft Budget excluding debt$30,873,197$30,700,449$172,7480.56% plus Budget supported by School Choice and Circuit Breaker$2,733,564$2,935,391($201,827) Total Draft FY 15 Budget All Funds excluding debt$33,606,761$33,635,840($29,079) Needed Budget Additions Elementary Technology Upgrades Year 1$70,000$0$70,0000.79% OPEB 1% of Payroll$197,800$0$197,8001.43% Budget Additions Subtotal$267,800 Total General Fund Draft Budget including all Needed Additions$31,140,997$30,700,449$440,5481.43%

15. Bottom Line FY15 Operating Budget Increase The proposed draft budget increases by $172,748, only.56% over the previous year. Borrowing costs to fund buildings projects, previously approved by the voters, is not included in the calculation of a municipal department’s annual budget increase.

16. Debt increases from $293,058 in FY14 to $779,476 in FY15. It will again increase in FY16. FY 15FY 14Difference% Change Debt$779,476$293,058$486,418166%

17. Assessment

18. Draft FY15 Assessment (as of 2/5/14) FY 15 Draft Total All Funds All Expenditures$34,654,037 $2,733,564 Less School Choice and Circuit Breaker Offsets FY 15 General Fund Draft Budget$31,920,473 Revenues Chapter 70($2,506,360) Charter School($134,190) Medicaid($86,000) Interest($4,000) Misc Revenues($7,500) ($2,738,050) Non Operating Expenditures Transportation($762,969) Debt($779,476) ($1,542,445) Operating Assessment$27,639,978 This draft Assessment includes the $70,000 technology upgrade for the elementary schools and starting to address OPEB by setting aside 1% of payroll.

19. Operating Assessment$27,639,978 HarwichChathamTotal Required Minimum Contribution per DESE$11,426,614$4,604,392$16,031,006 73%27% Funds Needed to Support District Budget$8,474,550$3,134,422$11,608,972 Total Operating Assessment Per Member$19,901,164$7,738,814$27,639,978 Transportation Assessment76%24%$762,969 Less State Transportation Aid$249,407 Total Transportation Assessment Per Member$390,307$123,255$513,562 73%27% Debt Existing$142,843$52,833$195,676 Debt Short Term$426,174$157,626$583,800 Total Debt Assessment Per Member$569,017$210,459$779,476 Draft FY 15 Assessment Operating $19,901,164$7,738,814 $27,639,978 Transportation$390,307$123,255$513,562 Debt$569,017$210,459$779,476 Total$20,860,488$8,072,528$28,933,016

20. Draft FY 15 Operating Assessment (Excludes Debt) HarwichChathamTotal Operating $19,901,164$7,738,814 $27,639,978 Assessment Adjustment due to Change in FY 14 Required Minimum Contribution($336,245)$336,245 Transportation$390,307$123,255$513,562 Total$19,955,226$8,198,314$28,153,540 FY 14 Operating Assessment (Excludes Debt) Operating$19,928,026$7,288,141$27,216,167 Transportation$319,825$124,376$444,201 $20,247,851$7,412,517$27,660,368 Change in Operating Assessment from FY 14 to FY 15 Operating($26,862)$450,673$423,811 Transportation$70,482($1,121)$69,361 $43,6200.2%$449,5526.1%$493,1721.8% Assessment Adjustment due to Change in FY 14 Required Minimum Contribution+$336,245-$336,245 $379,8651.9%$113,3071.5%$493,1721.8%

21. FY10 & FY11 Compared to FY15 Total Taxpayer Funding for Schools, excluding Debt FY10 Harwich $19,441,649 FY11 Harwich $20,386,086 FY15 Harwich $20,291,471 Adjusting for FY14 Minimum Required Contribution shift $19,955,226, which is $430,860 less than FY11 FY10 Chatham $10,329,247 FY11 Chatham $10,101,138 FY15 Chatham $7,862,069 Adjusting for FY14 Minimum Required Contribution shift $8,198,314, which is $1,902,824 less than FY11

22. Analysis of 2010 Abrahams Report

23. Abrahams Regional Budget Assumptions Chatham Middle-Senior High School building becomes district middle school New high school constructed in Harwich on current HHS site (2013) Maintain current programs of both districts for region School Choice In continues Elementary capital items will be addressed by the town of location Middle and high school capital expenditures split by towns according to formula Education activities/resources will be shared/applied across district through collaboration with community organizations All students transported by regional district Cafeteria self supporting Technology costs move to district budget Note: Abrahams analysis modeled maintenance of programs, not improvement.

24. Curricula Improvement is Paramount The Joint Finance Committee meeting in November 2010, prior to regionalization, concluded that regionalization was “not so much about finances as it was about curricula. The curricula improvement that occurs through regionalization appears to be quite significant…On our current paths, independently, we are likely to see a deteriorated curriculum, whereas with regionalization, it appears that we can actually improve the educational experience for our children. That is paramount.”

25. Abrahams’ FY10 Estimated Regional Budget Combined C/H Salaries and expenses Not intended to be in depth Based on general fund expenditures At no time during regionalization did anyone question whether $2.2M in staffing cuts could improve curricula.

26. Chatham Middle-High Staffing 1 Middle School Principal 21.2 Middle School teachers 1 High School Principal 25.5 High School teachers 3 Clerical positions 51.7 FTEs (Note: This staffing excludes teaching assistants, which are tied to IEPs, and Cafeteria workers, whose salaries are offset by cafeteria receipts) Plus, 2 Harwich Middle School Custodians The Abrahams Report assumption was that Monomoy can cut the equivalent of 82% of available staff at Chatham Middle-High School, in effect roll Chatham’s 290 middle and high school students into Harwich classrooms, AND maintain current Harwich and Chatham programs with only a handful of additional staff. The effect would be add approximately 5 students to each Harwich classroom and would not provide staffing to expand opportunities (like enhancing the AP program or providing “gifted and talented” enrichment at the middle school level) or to provide for curricular improvement. It is these expanded opportunities that have the potential to bring families back to Monomoy.

27. The FY15 Budget – Delivering on a Promise The FY15 Draft Budget reduced a net 15.8 staff. These are in addition to 10 staff positions reduced since the regionalization vote, as the district positioned itself for full regionalization by not replacing many retirements. The total staff reduction through regionalization will be -25.8 FTE. At present the FY15 Draft Budget is a.56% increase over the prior year. This budget attempts to deliver both on the promise of improved curricula and fiscal savings. At the February 12 Monomoy Regional School Committee, we will have additional clarity regarding the budget and hope to present a proposal that will realize a FY15 operating budget that is less than the FY14.