2015-03-AC-ATM-rpt - Laserfiche WebLink

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AC–2015ATM PPROPRIATIONOMMITTEE The Committee recognizes that there is an increased risk of an overrun because of this change. However, the Special Education Stabilization Fund is available to mitigate an unexpectedly large increase in these expenses. Funding Sources Not Subject to Appropriation The annual appropriation from the Town supports the majority of the school budget. However, the com- plete school budget includes additional funds from state, federal and other sources that are not subject to appropriation by Town Meeting, thus these funds are not included in this request. The amounts of these funds vary year to year. A brief listing of some of these follows: Federal Grants – For FY2016, the School Department projects that it will receive $1,890,632 in federal grants, the same amount that was received in FY2015. State Grants – The Town receives grants from the state to support METCO, School Health, Ac- ademic Support, Full-Day Kindergarten, and Special Education Program Improvement. State grants do not include cherry-sheet local aid for education, because local aid is considered to be General Fund revenue. “Circuit Breaker” Reimbursements – Reimbursements are received from the state when the tu- ition costs of special education services for an individual student, whether in-district or out-of- district, exceeds a multiple of four times the statewide foundation budget. In the past, reimburse- ment rates have varied between 35% and 75% of the tuition cost. Circuit breaker reimbursement funds are treated as an offset with regard to this budget request. State grants for FY2016 are as yet uncertain (see below), and the School Department budget initially as- sumed the total aid from grants would be $1,571,550, the same as in FY2015. The School Department also projected the FY2016 circuit breaker reimbursement rate would be the same as the FY2015 reim- bursement rate of 72%. With a base of 126 students, the total reimbursement for FY2016 was estimated to be $3,018,304. The actual reimbursement for FY2015 was $3,028,763. The Governor’s proposed budget contains two significant cuts in state aid for FY2016. The Kindergarten Expansion grant that pays the cost of Kindergarten Assistant positions would be eliminated, for a loss in state aid of $227,000. The reimbursement rate for the Special Education Circuit Breaker would be re- duced from 72% to 66%-68%, lowering the Town’s special education reimbursements by approximately $250,000. These cuts are still preliminary, and subject to change until the state budget is finalized. We note that the recommended Town Manager’s budget reserves $110,000 in anticipation of reductions in federal and state aid, but this would be insufficient to cover a possible $477,000 in cuts. These cuts could necessitate an increase in the School Department FY2016 budget request, an appropriation at a fu- ture Town Meeting (possibly using the Special Education Stabilization Fund), or reductions in service. Fee Programs Fees for participants in certain programs support those programs in whole or in part. No changes in the fee schedules for preschool are anticipated in FY2016. No fee changes are anticipated for athletic fees in FY2016. The only significant change in fees for FY2016 is the increase in the School Lunch price from $3.25 to $3.50 to cover the cost of the LHS dishwasher, eliminate the use of styrofoam trays from the program, and cover rising food costs. The lunch price was last increased in the 2005-2006 school year. Transportation Special education transportation is required to provide access for some students to educational services. This budget request includes an increase of $132,574 due to contractual increases and an increase in the number of both in-district and out-of-district students receiving transportation services. The McKinney- Vento Act requires that the district provide transportation for homeless students residing in Town. In FY2015, the Town saw a decrease in the number of homeless students it serves. It is estimated that 11 homeless children will require transport in FY2016. 7