To:  Members of the Board of Directors

From Michael Cormier, Leanne Condon, and the Budget Sub-Committee of the Board

Re:  Proposed Budget for 2013-2014

Date:  April 2, 2013

It is time, once again, to write an explanation and rationale for the proposed budget.  Please note that this is Mike’s last cover letter for a budget book and Leanne’s first attempt -- as part of the superintendent internship.

For another year we find ourselves in trying times.   To borrow from another ~ “During these continued tough economic times, writing a sensible, fair budget, that provides real opportunities . . . is always tough” (Senator Jeanne Kohl-Welles).

The Budget Sub-Committee established goals and priorities for this budget process to include:

1.  Maintain teacher-pupil ratios within our schools.

2.  Retain current programming.

3.  Address needs in the area of special education.

4.  Address increase in fixed cost charges.

In keeping with our goals and priorities, we built a budget that has an increase of $479,753, or 1.7%.  You may be aware that there have been some changes in state funding of education, and there has been discussion by the state whether or not to ask local districts to cover teacher retirement; should retirement get shifted to the local school district, the budget increase is $793,801, or 2.7%.

Although we do not have the official figures from the state as we go to “press,” we have a preliminary calculation of the adjusted state share to RSU #9 of $18,129,866.  This is up $47,955 from 2012-13.  These figures do not take teacher retirement cost sharing into consideration.

Other issues to be aware of include the state enacting a curtailment that will withhold $135,250 from our 2013-14 and 2014-15 budgets.   Our balance forward is decreased by $240,000 for this year’s budget proposal;  budgets are so tight that there is very little left at the end of the year.   

Our fixed cost increases for health, building and fleet insurances, student tuition, negotiated salaries and related taxes, facility and grounds repairs account for an increase of about $617,000 and is offset by a decrease of $358,860 in bonded debt payments.

As an administrative team, we acknowledge the need for a day-treatment program for special education.   There is also a demand for Foster Career and Technical Center programming to include a half-time pre-engineering course, increase the existing composites class to full time, and bring in a full-time CADD program.  All of these program changes bring additional revenue over time, but the members of the budget sub-committee agreed it was not prudent at this juncture to increase the burden to our local taxpayers.

Reductions in school supplies, textbook accounts, and materials are now in the fourth year.  Money to repair facilities was kept to a minimum with focus on the areas needing critical updating to maintain a safe environment for students and staff.

Extended-day and -year programming, for general and special education are again funded in part by federal grant money and also by the local school budget.

Mt. Blue Regional School District continues to be a highly effective and efficient school system.  We rank eighty-nine out of one-hundred-and-three K-12 public school systems in the State.  Eighty-seven percent of school systems in the State spend more per student than Mt. Blue RSD based upon 2011-12 figures.  The average cost for K-12 education in the State is $9,727 per pupil; the average cost in RSU No 9 is $8,446 per pupil or $1,281 below State average.

We urge you to be aware of the continued changes in state funding of education as we move through this budget process.  We submit a budget to you that supports our goals and priorities, maintains current programming, and is fiscally responsible.  We appreciate your support as we work together to present a budget to our local towns.

The  attachments are breakdowns for each scenario.

Attachments:

2014BudgetSummary.pdf	[ ]	102 Kb
2014BudgetSummaryNOret.pdf	[ ]	100 Kb
Line Item Table NO ret.pdf	[ ]	97 Kb
Line Item Table.pdf	[ ]	97 Kb

• The contractor has been thawing the ground inside the building with ground heaters, heating tubes and blankets.  Concrete floor slabs have been placed in the auditorium with cross aisles and auditorium risers for the upper seating.  Concrete slabs were also placed along the auditorium corridor serving digital media, the TV. studio and sound studio.  Concrete floor slab was also placed on the mechanical mezzanine, as well as thickened equipment pads for ventilation and heat recovery equipment.

• The masonry subcontractor worked on interior concrete block walls in the music wing, the athletic support rooms, toilets, and hallways.  Masonry also continued on walls in the three-story “B” wing.  Exterior brickwork on the south side of the three-story “B” wing was also installed.

• Structural steel columns, beams, joists and decking were installed for the sloping roof of the “A” wing and new administrative offices.  Bridging and decking were welded and installed at the new “B” wing stairwell and second floor outside the auditorium.

• A testing laboratory has been on site inspecting bolted and welded connections for structural steel joists and deck at the “A” and “C” wing.

• Carpentry crews continue to install wood blocking for interior partitions in the three-story “B” wing.  Installation of the wood glue lam columns, beams and decking for the Main Street hallway was completed.  Carpentry crews also installed roof overhang outriggers and completed wood blocking for the parapets at the mechanical room and auditorium.

• The roofing contractor completed the roof installation at the auditorium and second story mechanical mezzanine.  Windows and curtain wall systems continue to be installed at the three-story “B” wing with exterior and interior caulking and gasketing being installed on both sides of the glass windows.

• The drywall contractor has continued to install steel stud framing, insulation, and fire code gypsum wallboard throughout the three-story “B” wing.

• Painting began on the interior walls of the second and third floor of the “B” wing.

• The flooring contractor installed and grouted floor and wall tile for the toilets and staff toilets on the second and third floors.  Installation of the porcelain tile began at corridor walls and toilet rooms.  Ceiling tile hangers, grids and angles were installed on the second and third floors.

• Science room laboratory cabinets and casework was installed on the second and third floors.  Countertops and sills were begun at windows and curtain walls.  Classroom cabinets were also installed on the second and third floor classrooms.

• Sprinkler main pipes have been run down the corridors of the three-story building.  Sprinkler head locations have been started in the “A” wing.

• Sanitary and vent piping, as well as domestic cold and hot water pipes were set in the bathrooms and science rooms, as well as piping for the geothermal heat pumps installed in the three-story classrooms.

• Electronic controls were installed for heat pump units, fans and energy recovery units at the three-story building.  Mechanical installation continued on cold and hot water pipes throughout the building.

• Power wiring and electrical devices were installed in the three-story building, as well as fire/audio/and visual alarms as part of the life safety systems.

• The earthwork contractor continued to work inside of the “A” wing backfilled trenches and compacted sub-grade soils in preparation for concrete slab pours in the “A” wing.

• The construction testing laboratory was observed reinforcing bar placements, concrete placements and concrete testing.

• One third party engineering inspection of erosion control measures was done on behalf of DEP during the month of February.

• Wright-Ryan Construction continues to have two full time construction superintendents on site.  Weekly subcontractor meetings are held to review scheduling and general site safety.  The contractor’s construction superintendents meet weekly with Mt. Blue School District personnel to discuss safety and emergency response protocol.

• Mt. Blue School District personnel continue to meet every two weeks with representatives from the State of Maine and the architect’s office to review the progress of the work, the construction quality and job site safety.