Litchfield School DistrictDELIBERATIVE SESSION

FISCAL YEAR 2015 BUDGET

School Board

DEREK BARKA – CHAIR

PATRICIA D’ALLEVA – VICE CHAIR

BRIAN BOURQUE – MEMBER

DENNIS MILLER – MEMBER

JOHN YORK – MEMBER

Administration Dr. Brian Cochrane - Superintendent

Frank Markiewicz - Business Administrator

Tracy Micali – Director of Human Resources

Kyle Hancock – Director of Technology

Julie Heon – Curriculum Director

Devin Bandurski – Director of Special Services

Laurie Rothhaus – CHS, Principal

Tom Lecklider – LMS, Principal

Scott Thompson – GMS, Principal

Budget Handout

Budget Report by FunctionFunction report describes activities for which a service

or material object is appropriated and expensed

1000’s Instruction2000’s Support Services3000’s Operation of Non-Instructional Services4000’s Facilities Acquisition and Construction Services5000’s Other Outlays

Budget Report by Object

There are nine categories that describe specific expenditures for services and commodities

100 Salaries

200 Employee Benefits

300 Professional Services

400 Utility Services

500 Other Purchased Services

600 Supplies

700 Property

800 Other

900 Other Use of Funds

Reports Available OnlineWWW.LITCHFIELDSD.ORGRecommended General and Food Service 2015

Budget

Default Budget

Warrant Articles

Estimated Tax Impact

Clarification

IF Town & School Operating Budget and

Warrants Articles All Passed

Town Impact: $ .37 cents per thousand

School Impact: $ .60 cents per thousand

Total Estimated Impact: $ .97 cents per thousand

ESTIMATED TAX IMPACT          

Value (Thousands) 200 250 300 350 400 450

TOWN $ 74 $ 93 $ 111 $ 130 $ 148 $ 167

SCHOOL $ 120 $ 150 $ 180 $ 210 $ 240 $ 270

Total $ 194 $ 243 $ 291 $ 340 $ 388 $ 437

             

ARTICLE 1 Shall the Litchfield School District vote to raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, the amounts set forth on the budget posted with the warrant or as amended by the vote at the first session of the annual school district meeting, for the purposes set forth herein, totaling Twenty Million Nine Hundred Thirty One Thousand Twenty Four Dollars and Fifty Seven Cents ($20,931,024.57)? Should this article be defeated, the default budget shall be Twenty Million Eight Hundred Four Thousand Five Hundred Fifty Nine Dollars ($20,804,559) which is the same as last year, with certain adjustments required by previous action of the Litchfield School District or by law; or the School Board may hold one special meeting, in accordance with RSA 40:13 X and XVI, to take up the issue of a revised operating budget only. Estimated Tax Impact: $0.27  

Recommended by the School Board Recommended by the Budget Committee

Vote 4-0-0 Vote 8-0-0

Recommended Appropriations

FUND 2014 2015 $ Change % ChangeGeneral Fund Budget $19,817,115 $19,761,323 -$55,792 -0.3%Food Service Budget $598,476 $594,702 -$3,774 -0.6%Federal Funds Budget $575,000 $575,000 $0 0.0%TOTAL OPERATING FUNDS $20,990,591 $20,931,025 -$59,566 -0.3%

General94%

Food Service3%

Grants3%

2015 OPERATING BUDGET

General Food Service Grants

Recommended AppropriationsGeneral Fund

Salaries & Benefits 14,743,738School Operations 2,392,355Buildings & Grounds 1,218,843Transportation 917,718Student Services 211,746District Administration 170,280Improvement of Instruction 106,643

TOTAL General Fund 19,761,323

75%

12%

6%

5%

1% 1% 1%

Salaries & Benefits

School Operations

Buildings & Grounds

Transportation

Student Services

District Administration

Improvement of Instruction

Major Drivers Impacting Budget

INCREASES

• Insurance increase of 8.4 %

• Increase in IEP driven positions

• Equipment• GMS Computer Lab• Mower• Café tables

• Transportation contract has expired and expecting 25% increase

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

DECREASE

-350,000

-300,000

-250,000

-200,000

-150,000

-100,000

-50,000

0

Principal Reduction Bond; -315,000

Handicapped Tuition, -199,700

Interest Reduction-Bond; -42,000

Teacher Retirement; -32,057

• Last year of Bond payment on CHS

• Decrease in Tuition for students placed out of district

• Teacher reduction due to declining enrollment

ESTIMATED 2015 REVENUE ANALYSIS • District no longer eligible for State Kindergarten Aid (-$86,250)

• Reduction in Adequate Education Aid (-$117,512) • due to revised formula for distribution (RSA 198:41) based on

anticipated reduction in ADMA – Average Daily Membership (Students) in Attendance

• Increase in Catastrophic Aid (+$48,808) and Medicaid Distribution (+$32,000)

ESTIMATED ESTIMATED

SOURCE OF REVENUE 2015 2014 CHG $ CHG %

REVENUE FROM LOCAL SOURCES  

Tuition 10,000 14,000 -4,000 -28.6%Transportation Fees 8,000 8,000 0 0.0%

Earnings on Investments 600 1,200 -600 -50.0%

Food Service Sales 470,352 474,126 -3,774 -0.8%

Student Activities 90,773 67,107 23,666 35.3%

Other Local Sources 10,000 10,000 0 0.0%

TOTAL LOCAL REVENUE 589,725 574,433 15,292 2.7%

REVENUE FROM STATE SOURCES  

School Building Aid 260,787 260,787 0 0.0%

Catastrophic Aid 315,798 266,990 48,808 18.3%

Vocational Aid 2,500 2,000 500 25.0%

Child Nutrition 7,000 7,000 0 0.0%

TOTAL STATE REVENUE 586,085 536,777 49,308 9.2%

REVENUE FROM FEDERAL SOURCES  

Federal Program Grants 275,000 275,000 0 0.0%

Child Nutrition 117,350 117,350 0 0.0%

Disabilities Programs 300,000 300,000 0 0.0%

Medicaid Distribution 92,000 60,000 32,000 53.3%

TOTAL FEDERAL REVENUE 784,350 752,350 32,000 4.3%

TOTAL ALL REVENUE PROJECTIONS 1,960,160 1,863,560 96,600 5.2%

Education Grant 5,758,111 5,875,623 -117,512 -2.0%

TOTAL 7,718,271 7,739,183 -20,912 -0.3%

Catastrophic Aid

Medicaid

Adequate Education

Aid

Loss of Kindergarte

n Aid -$86,250

Default Budget

2015 DEFAULT GENERAL FUND OPERATING BUDGET 19,631,083

2015 DEFAULT FOOD SERVICE BUDGET 598,476

2015 DEFAULT GRANTS FUND BUDGET 575,000

TOTAL LSD 2015 DEFAULT BUDGET20,804,55

9

Default to Current Year Budget Comparison

2014 Default $ Difference

General Fund 19,817,115 19,631,083 -186,032

Food Service 598,476 598,476 0

Federal Funds 575,000 575,000 0

Default to 2015 Budget Comparison

2015 Default$

Difference

General Fund 19,761,323 19,631,083 -130,240

Food Service 594,702 598,476 3,774

Federal Funds 575,000 575,000 0

Estimated Tax Impact CalculationOperating Budget

Budget 20,931,025

Projected Revenue 7,718,271

Education Tax 1,850,157

Local Tax 11,362,597

Rate 13.79

$ 0.27

% 1.97%

ARTICLE 2To see if the Litchfield School District will vote to approve the cost items included in the collective bargaining agreement reached between the Litchfield School District and the Litchfield Education Association which calls for the following increases in salaries and benefits at the current staffing level: 

Year Estimated Increase 2014-2015 $ 213,383 2015-2016 $ 195,737

2016-2017 $ 175,545

and further to raise and appropriate the sum of Two Hundred Thirteen Thousand Three Hundred Eighty Three Dollars ($213,383) for fiscal year 2015, such sum representing the additional costs attributable to the increase in salaries and benefits required by the new agreement over those that would be paid at current staffing levels. Estimated Tax Impact: $0.26 Recommended by the School Board Not Recommended by the Budget CommitteeVote 4-1-0 Due to Tied Vote 4-4-0 

School Board Negotiation Objectives

Maintain competitive salaries, recruit, and retain high quality teachers:• No contract for 2 years.• No contract for 3 out of last 5 years.

o 2009-10 – No contracto 2010-11 – Steps (no increase for top)o 2011-12 – Steps + 1% schedule adjustmento 2012-13 – No contracto 2013-14 – No contract

Our most experienced teachers have received a 1% raise since 2008-2009.

Litchfield 2013-14 Teacher Salary Scale

St.\Gr. B B+15 B+30 M M+15 M+301 33,623 34,765 35,907 37,051 38,194 39,3372 35,070 36,282 37,494 38,710 39,876 41,0413 36,517 37,799 39,083 40,370 41,557 42,7444 37,963 39,317 40,671 42,029 43,239 44,4485 39,410 40,834 42,259 43,689 44,920 46,1526 40,857 42,352 43,847 45,348 46,601 47,8557 42,303 43,869 45,436 47,007 48,283 49,5598 43,750 45,386 47,024 48,667 49,965 51,2629 45,195 46,904 48,612 50,325 51,645 52,965

10 46,644 48,421 50,201 51,985 53,327 54,66811 48,090 49,939 51,789 53,644 55,009 56,37212 49,536 51,456 53,377 55,304 56,690 58,07513 50,984 52,973 54,965 56,963 58,371 59,77914 52,430 54,492 56,554 58,622 60,053 61,48215 53,876 56,010 58,142 60,281 61,733 63,186

33,623 Meets 2013-14 Federal eligibility requirements for Free or Reduced Meals for a family of 3. ($36,131)

40,671 Meets 2013-14 Federal eligibility requirements for Free or Reduced Meals for a family of 4. ($43,568)

45,436 Salary between $43,569-$50,00055,304 Salary between $50,001-$60,00061,733 Salary over $60,000

Reduce health insurance costs to the District:o Maintains high quality health care while still accruing significant

decrease in employer health care costs due to moving to a plan where employees pay higher deductibles and co-pays (including prescriptions).

o New health care provider/plan has a history of lower annual increases than existing coverage.

o Additional healthcare savings will also be accrued with non-LEA healthcare eligible employees.

o The employee share of the HMO plan changes from 85/15 to 84/16 and then beginning in 2015-16 the cost share changes to 83/17 saving even more on healthcare.

o New healthcare provider/plan greatly diminishes likelihood of, and severity of, potential “Cadillac” tax costs (11% versus 28% increase required to trigger existing threshold).

School Board Negotiation Objectives

Quality of teaching is primary factor impacting future Reduction In Force (RIF) decisions:

However, probationary teachers in the same category as defined in section C-1 will be laid off prior to teachers on continuing contract.

Reduce the costs of teacher sick time. Beginning in 2016-17:

o Existing teachers move from 15 sick days/year to 12 dayso Teachers new to the district receive 10 sick days/year and

can accrue a maximum of 110 days (vs. 125) Potential savings due to:

Fewer sick days used; and Decreased severance payments to teachers

School Board Negotiation Objectives

What are Salary Schedules?

Teaching staff is paid based upon the salary schedule approved in the collective bargaining agreement. When hired, an educator is placed on a “LADDER” or “Grade-Level” based upon their degree status.

• Bachelors• Bachelors + 15 credits• Bachelors + 30 credits• Masters• Masters + 15 credits• Masters + 30 credits

Within that ladder, they are placed on a STEP based upon their years of experience.

How Do Salary Schedules Work?

• Each school year with a contract, teachers move up one step on the experience scale.

• When there is no contract, there is no step movement.• Teachers at top step no longer move steps.• Occasionally, the contract will also include step

modifications to keep the salary schedule competitive and to provide raises for members at the top step.

Current ScheduleSTEP B B+15 B+30 M M+15 M+30

1 33,623 34,765 35,907 37,051 38,194 39,337 2 35,070 36,282 37,494 38,710 39,876 41,041 3 36,517 37,799 39,083 40,370 41,557 42,744 4 37,963 39,317 40,671 42,029 43,239 44,448 5 39,410 40,834 42,259 43,689 44,920 46,152 6 40,857 42,352 43,847 45,348 46,601 47,855 7 42,303 43,869 45,436 47,007 48,283 49,559 8 43,750 45,386 47,024 48,667 49,965 51,262 9 45,195 46,904 48,612 50,325 51,645 52,965

10 46,644 48,421 50,201 51,985 53,327 54,668 11 48,090 49,939 51,789 53,644 55,009 56,372 12 49,536 51,456 53,377 55,304 56,690 58,075 13 50,984 52,973 54,965 56,963 58,371 59,779 14 52,430 54,492 56,554 58,622 60,053 61,482 15 53,876 56,010 58,142 60,281 61,733 63,186

Step Size 1,446 1,518 1,588 1,659 1,680 1,704

Proposed Contract: Year 1 2014-2015

Schedule Modification – slide schedule 1 Step Up• Remove 1st step (old Step 2 becomes Step 1)• Add new 15th Step

Each teacher receives a step

End result• Staff members “On the schedule” (not top) receive an increase

equal to two steps.

• Staff Members on top step receive an increase equal to 1 step.

Benefits• Schedule\starting salary is more competitive.• Staff on the schedule have a more competitive wage.

2014-2015 Modified Schedule

STEP B B+15 B+30 M M+15 M+301 33,623 34,765 35,907 37,051 38,194 39,337 1 35,070 36,282 37,494 38,710 39,876 41,041 2 36,517 37,799 39,083 40,370 41,557 42,744 3 37,963 39,317 40,671 42,029 43,239 44,448 4 39,410 40,834 42,259 43,689 44,920 46,152 5 40,857 42,352 43,847 45,348 46,601 47,855 6 42,303 43,869 45,436 47,007 48,283 49,559 7 43,750 45,386 47,024 48,667 49,965 51,262 8 45,195 46,904 48,612 50,325 51,645 52,965 9 46,644 48,421 50,201 51,985 53,327 54,668

10 48,090 49,939 51,789 53,644 55,009 56,372 11 49,536 51,456 53,377 55,304 56,690 58,075 12 50,984 52,973 54,965 56,963 58,371 59,779 13 52,430 54,492 56,554 58,622 60,053 61,482 14 53,876 56,010 58,142 60,281 61,733 63,186 15 55,320 57,524 59,726 61,937 63,408 64,888

Year 2: 2015-2016

• On Schedule: Move up 1 Step• Top Step Modification:

o ½ a step increase + $300

• NOTE:o In year 16-17, top step will receive second half of step.

2015-2016 Modified Schedule

STEP B B+15 B+30 M M+15 M+301 35,070 36,282 37,494 38,710 39,876 41,041 2 36,517 37,799 39,083 40,370 41,557 42,744 3 37,963 39,317 40,671 42,029 43,239 44,448 4 39,410 40,834 42,259 43,689 44,920 46,152 5 40,857 42,352 43,847 45,348 46,601 47,855 6 42,303 43,869 45,436 47,007 48,283 49,559 7 43,750 45,386 47,024 48,667 49,965 51,262 8 45,195 46,904 48,612 50,325 51,645 52,965 9 46,644 48,421 50,201 51,985 53,327 54,668

10 48,090 49,939 51,789 53,644 55,009 56,372 11 49,536 51,456 53,377 55,304 56,690 58,075 12 50,984 52,973 54,965 56,963 58,371 59,779 13 52,430 54,492 56,554 58,622 60,053 61,482 14 53,876 56,010 58,142 60,281 61,733 63,186

Old 15 55,320 57,524 59,726 61,937 63,408 64,888 New 15 56,345 58,587 60,824 63,070 64,555 66,042

Year 3: 2016-2017

• Schedule Modification - Similar to year 1• Slide schedule 1 Step Up• Remove 1st step (old Step 2 becomes Step 1)

• Add new 15th Step + $300• This is only half a step + 300• Second half from year 2015-2016• Top step receives (1 step + $600) over years 2 and 3

• Teachers do NOT move a step• Increase is equal to 1 step for teachers on the schedule.

2016-2017 Modified Schedule

STEP B B+15 B+30 M M+15 M+301 35,070 36,282 37,494 38,710 39,876 41,041 1 36,517 37,799 39,083 40,370 41,557 42,744 2 37,963 39,317 40,671 42,029 43,239 44,448 3 39,410 40,834 42,259 43,689 44,920 46,152 4 40,857 42,352 43,847 45,348 46,601 47,855 5 42,303 43,869 45,436 47,007 48,283 49,559 6 43,750 45,386 47,024 48,667 49,965 51,262 7 45,195 46,904 48,612 50,325 51,645 52,965 8 46,644 48,421 50,201 51,985 53,327 54,668 9 48,090 49,939 51,789 53,644 55,009 56,372

10 49,536 51,456 53,377 55,304 56,690 58,075 11 50,984 52,973 54,965 56,963 58,371 59,779 12 52,430 54,492 56,554 58,622 60,053 61,482 13 53,876 56,010 58,142 60,281 61,733 63,186 14 55,320 57,524 59,726 61,937 63,408 64,888 15 57,366 59,641 61,914 64,196 65,689 67,191

Proposed Contract: Total Salary ChangesStep 1-13:• 4 Steps in 3 years

Step 14• 3 Steps in 3 years

Step 15• 2 Steps + $600

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-175,600,000.00

5,800,000.00

6,000,000.00

6,200,000.00

6,400,000.00

6,600,000.00

6,800,000.00

7,000,000.00

7,200,000.00

7,400,000.00Historical Wages

2009 2010 2011 2012 2013 2014 2015 2016 2017$1,000,000.00

$1,100,000.00

$1,200,000.00

$1,300,000.00

$1,400,000.00

$1,500,000.00

$1,600,000.00

$1,700,000.00

$1,800,000.00

$1,900,000.00

Healthcare Costs - Historic and Projected

Current Proposed

Co

st

(Millio

ns)

Official Contract Costs

A Projected Cost Analysis…

LEA Agreement - Historical Averages Projected in 2015-2016 2014-15 2015-16 2016-17 Total

Projected Salary Increases $

421,489 $

212,737 $

203,121 $

837,347

Projected HC Savings $208,106 $87,191 $95,168 $

390,465

Difference $

213,383 $

125,546 $

107,953 $

446,882 Projected Non-LEA HC Savings (100% SB) $68,000 $10,940 $11,815

$ 90,755

Total HC Savings $276,106 $98,131 $106,983 $481,220

Total Difference $

145,383 $

114,606 $

96,138 $

356,127

ARTICLE 3To see if the Litchfield School District will vote to raise and appropriate the sum of Twenty Five Thousand Six Hundred Sixty Two Dollars ($25,662) for the purpose of funding a part-time computer teacher position at Griffin Memorial School. Estimated Tax Impact: $0.03 Recommended by the School Board Recommended by the Budget CommitteeVote 3-1-0 Vote 8-0-0 

Leveraging Technology to Support Career and College Readiness for All K-12 StudentsThe Evolving Role of Technology in K-12 Education: Moving towards Blended Learning

The Situation…Global competitiveness, outsourcing and the increased use of technology to replace routine physical and cognitive tasks has greatly reduced the number of low-skill jobs available.“Extrapolating from studies done in other countries…it is likely that the United States is shedding 2,500 low-skill jobs every day.” (William, 2011, p. 7)The gap between what students know and are able to do and the knowledge and skill required to remain gainfully employed in today’s globally competitive marketplace has never been wider.

The Changes Schools Need to Make… Higher expectations for student learning More independent learning Development of digital literacy layered on top of strong traditional literacy and numeracy skills Increased cognitive rigor Problem solving and application

Computer Adaptive Testing

SBAC Computer Adaptive Testing

SBAC Testing requires students as early as the end of grade 3 to: Have fluent keyboarding skills (on-demand full page typed essay response); Be proficient with technology-based writing, and editing (highlighting, copy, cut, paste, etc.); Have experience with a broad range of virtual math manipulative (see examples in later slides); and Be able to interact fluently with a variety of technology interface systems.

SBAC “Technology Enhanced” GuidanceAs a few examples, a technology enhanced item may require the student to: produce a line or a set of lines; to draw a shape like an isosceles triangle or a rectangle with a specific area or perimeter; to rearrange the order of numbers or expressions; or to categorize geometric shapes, numbers, or expressions by dragging and dropping them.

Grade 4

Grade 5

SBAC Sample TE

Math Questions

Grade 4

Classify each shape below based whether it contains at least one pair of parallel sides.

Grade 4

ARTICLE 4 To see if the Litchfield School District will vote to raise and appropriate the sum of up to Fifty Thousand dollars ($50,000.00) to be added to the building maintenance Capital Reserve Fund established in 2004. This sum to come from June 30 fund balance available for transfer on July 1.  No amount to be raised from taxation. Recommended by the School Board Recommended by the Budget CommitteeVote 4-0-0 Vote 7-1-0  

As of June 30, 2013

Capital Improvement – Building Maintenance - $787

Special Education - $103,449

Capital Reserve

Fund Balances

ARTICLE 5 To see if the Litchfield School District will vote to raise and appropriate the sum of Thirty Six Thousand Seven Hundred Dollars ($36,700) to purchase security equipment necessary to upgrade external access control and panic alarms at Griffin Memorial School, Litchfield Middle School, and Campbell High School. Estimated Tax Impact: .04 Recommended by the School Board Recommended by the Budget CommitteeVote 4-0-0 Vote 7-0-1

 

Estimated Tax ImpactOperating Budget and Warrants

Total Budget21,206,369

.57

$ Tax Impact 0.60

% Tax Impact 4.45%

Operating Budget & WarrantsHomeowner Tax Impact

Home Value (Thousands) 200 250 300 350 400 450

Operating Budget 53.38 66.72 80.07 93.41 106.76120.10

Article 2 51.78 64.73 77.67 90.62 103.56116.51

Article 3 6.13 7.66 9.20 10.73 12.26 13.79

Article 5 8.91 11.13 13.36 15.59 17.81 20.04

Total Estimated 120.20150.25180.30210.35240.40270.45

Thank You!