Essex Town Meeting is coming up on Monday, May 7th!
Pre-Town Meeting Budget Update
Our current fiscal situation requires us to make some difficult choices, though. MERSD began the FY19 facing a projected $735,000 (16%) increase in health care costs. This increase followed a 28% increase in fiscal year 2018, for a total increase of $1.5 million dollars in two years. We are pleased to report that projection for increase has decreased to 10%. This rate improvement has allowed us to avoid the further cuts to program and still address unmet staffing needs at the secondary level. However, the overall impact of the two-year increase in health care exceeds available funds under a level services budget, leaving limited funds to manage annual increased costs and program investments.
In the short-term, to manage the FY19 budget, we have identified a series of efficiencies in the areas of services, fees, staffing and program to create a balanced budget and meet our goal of working within the limits of Proposition 2.5.
Gap Closing Measures
Services/Fees/Revenue Reductions
| ||
Staff Reduction through attrition
|
$354,000
| |
50 % Reduction Overtime/Summer work All Departments
|
$60,000
| |
Hiring Cap
|
$30,000
| |
Eliminate Late Buses
|
$25,000
| |
HS Student Activity Cut
|
$20,000
| |
Curriculum/PD Small Cap Reduction
|
$20,000
| |
IDEA Grant Reorganization
|
$17,000
| |
Solar Savings
|
$10,000
| |
Essex - Green Community Upgrades
|
$10,000
| |
Full Day K on Wednesdays/Eliminate Transportation Cost
|
$8,000
| |
Reduce Custodial Supply Line
|
$7,500
| |
Retirement Replacement Offset
|
$5,000
| |
Eliminate Crossing Guard Fund
|
$4,500
| |
Reduce Nurse Substitute Line to FY 18 actual
|
$3,000
| |
$574,000
|
The slight enrollment decrease is working in our favor by allowing us to reduce personnel cost through attrition and retirements. Although we continue to manage a cohort of students in record high-class sizes, these students are now at the secondary level. Entering elementary class enrollments are smaller due to a demographic decline in school-age children. This population shift has allowed us to reduce classroom sections and staffing at the elementary level while maintaining class size benchmarks, making it possible to shift resources to the secondary level to address the larger cohort.
Total
| ||||||||||||||||
Student Population
|
K
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
HS
|
MS
|
Elm
|
2016-2017
|
77
|
82
|
88
|
112
|
122
|
115
|
124
|
132
|
131
|
115
|
103
|
98
|
109
|
425
|
387
|
596
|
2017-2018
|
77
|
82
|
73
|
92
|
116
|
125
|
117
|
125
|
131
|
133
|
116
|
100
|
99
|
448
|
373
|
565
|
2018-2019
|
70
|
77
|
82
|
73
|
92
|
116
|
125
|
117
|
125
|
131
|
133
|
116
|
100
|
480
|
367
|
510
|
2019-2020
|
70
|
70
|
77
|
82
|
73
|
92
|
116
|
125
|
117
|
125
|
131
|
133
|
116
|
505
|
358
|
464
|
2020-2021
|
70
|
70
|
70
|
77
|
82
|
73
|
92
|
116
|
125
|
117
|
125
|
131
|
133
|
506
|
333
|
442
|
Over time, MERSD will attempt to work collaboratively with teachers and staff to find ways to lower the cost of health insurance. Similar collaborative efforts have generated significant results in the past, including a recent agreement to reduce the cost of mandated health insurance for retirees (known as Other Post-Employment Benefits or OPEB) by migrating staff to less costly plans. This effort has enabled MERSD to budget $1.7 million over four years – funded entirely by savings from employee benefits restructuring – to be placed into a trust fund to ensure that long-term liabilities do not pose an unnecessary future burden on taxpayers. This successful collaboration has put MERSD far ahead of most other regional school districts, which have yet to face mounting OPEB liabilities.
The District prides itself in working collaboratively and positively with both its staff and the Town boards – all who have a common purpose in mind – delivering excellent services in the most fiscally responsible manner. We thank the leadership in both towns for working with us collaboratively to develop this budget, and for supporting this critical effort to maintain the District’s educational excellence.
