MERSD began the
FY17 budget cycle in a stable and improved financial position due to careful
fiscal management and strong support from Manchester and Essex residents. In FY16, taxpayers provided a one-time
revenue correction to make up for nearly a decade of enrollment growth that far
exceeded the constraints of Proposition 2.5. As a result of the taxpayer
approved revenue correction in FY16, MERSD is on a much firmer financial
footing, and no longer has to use rainy day reserve funds to support its annual
operating budget. MERSD has also taken
significant steps to address long-term financial liabilities, including the
cost of mandated health insurance for retirees (known as Other Post-Employment
Benefits or OPEB). As a result of a
collaborative effort with the Manchester Essex Teachers Association, which
agreed to migrate staff to less costly plans, MERSD is now on a path to full
funding, with an estimated $770K set aside in trust through FY17, funded
entirely by savings from employee benefits restructuring. Additionally, through recent refinancing of
existing bonds from the Middle High School project, MERSD stands to save the
taxpayers an estimated $1.3 million dollars ($75,000 annually) over the next
fifteen years.
The FY17 operating
budget assumes spending growth of $722K, or just 3.1% more than FY16. The resulting assessment increase to the
towns is a 3.3% increase from FY16, due in part to a slowdown in state aid,
which provides MERSD’s other main source of funding. Spending growth, excluding the cost of health
insurance and OPEB contributions, is just 2.2%.
Town payments in the FY17 capital budget, which pays for debt service
related to construction of the Regional Middle High School, are declining $61K,
or 2.6% from the prior year.
Through the ongoing
in support of the community, MERSD continues is reputation of strong academic
achievement, high quality faculty, a commitment to small class size and a
robust co-curricular program. Throughout
2015, MERSD continued to make progress in fulfilling its goals as outlined in
the Strategic and District Improvement Plans.
Highlights include continued academic excellence ranking number sixteen
on Boston Magazine’s best districts list, recognition as a model district for
the implementation of the newly revamped educator evaluation system,
implementation of the Youth Risk Behavior Survey to assess the social emotional
needs of students, the successful
negotiation of multi-year teachers’ contract, and continued development of
programs and systems to support the belief system of whole child
education.
