Lisbon School Department Budget Presentation to Town Council

March 4, 2014 Overview I would like to start by providing you with a new Cost Center Analysis which provides a detailed overview of the last six Lisbon School Department budgets. (Handout) This information is helpful when comparing the changes in state subsidy (Green) over the last several years which have required increases to the local contribution (Yellow). Our current 2014-2015 subsidy figures are only estimates and we are not sure when the approved figures will be released but I have been told that preliminary figures will be released in late February. I have also been told that it is again unlikely that a state budget will be approved until sometime in June possibly after our referendum. As you can see from the Cost Center Analysis, the total increase in expenditures for the 2014-2015 school year is $284,638. Our preliminary subsidy amount has an increase of $139,775 which was the result of increased funding that was approved in the revised 2013-2014 state budget that was adopted after our referendum vote in June. Our undesignated amount, that is used to build the budget, remained flat at $118,211. As a result of an increase in Unanticipated Revenue and a recent transfer, our current Capital Reserve Balance is $141,631. This initial budget would potentially require an increase in Local Funding of $232,877. This amount does not include any use of the Capital Reserve Balance to build the budget. Budget Goals/Focus) Maintain all existing programs, including reducing class sizes (if possible), Prioritize program/facility improvements linked to the New England Association of Schools & Colleges (NEASC) recommendations at Lisbon High School and general facility improvements at Philip W. Sugg Middle School, Maintain existing 5 year Capital Plan, Consider technology improvements, Maintain professional development and time for staff; and, Continue to pursue cost saving measures through collaborative efforts with the town and area districts.

Our primary goal is to maintain our current student programs and services. We continue to look at our current procedures to make sure that we are operating in the most efficient manner. On-going conversations will continue with the Interim Town Manager to see if there are any other areas that we can consolidate our resources to reduce spending.

Areas with Increases (New Money) Personnel (Curriculum, Nurse) Books (LCS Library) Tuition (P.W.S./Co-Curricular) Plowing (Grounds/Maintenance) Charter Schools Tuition (LCS) OT Services (Elem.) ESL Services (Sec.) Areas with Increases (Transfers) Guidance, Technology Integrator (Assignments) National Conferences Copier Leases (Superintendent and Business Office) Heating/Electricity (Operations and Maintenance) Debt Service (Transportation) Supplies (LCS) Custodial (Adult Education) Additional Areas of Potential Savings/Costs (Variables) Anticipated/Actual Resignations Anticipated/Actual Retirements (March 1st) Capital Reserve (Transfer) Insurance 10% Maine State Retirement ($169,982) Special Education (Enrollment) State Budget (Curtailment) State Subsidy (ED-279) Unanticipated Revenue Budget Related Conversations Central Office (Relocation) In 2010 the Lisbon School Department researched what the cost would be to relocate the Central Office staff. Options included the construction of a new building, adding space to the Town Office and leasing property in town. The increased costs associated with all of these options were much higher than the current operational figures so the decision was made to stay at our current location. Since this investigation occurred, the Gartley Street Program and Adult Education have both been moved into this space bringing in increased revenue and justifying the continued use of the building.

Consolidated Resources (Cleaning, Maintenance, Payroll, Plowing) Over the last five years there have been multiple discussions related to consolidating resources between the Town and School Department. Cleaning: The Lisbon School Department currently provides the cleaning services for the Town Office which has worked out well.

Maintenance: Over the last few weeks there have been some preliminary discussions related to the maintenance on our vehicles. Space and resources has been an issue in the past but that may change and we will continue to look at our options. Payroll: Over the last few years there have been several conversations related to the school taking over the payroll for the Town. Although the most viable option, this would impact current employees and has never been acted upon. Over the last few years there have been numerous conversations about the Town plowing for the Lisbon School Department. Based on the most recent conversation, this would require the Town to hire at least 1-2 people which would result in an increase of spending. Additional data is being collected to determine there are any potential savings.

Plowing:

Pay to Play The Lisbon School Department continues to look at whether or not charging students fees to participate in co-curricular events is feasible. Most examples are schools charging a fee for students to participate which alienates some students/families and only generates limited revenue. We will continue to research how other school departments are addressing this issue.