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2022 ATM,2022-1 STM APPROPRIATION COXMTTEE 21 MARCH 2022
<br /> Revenue Sources FY2022 FY2023 Change $
<br /> Chapter 70 $ 1,986,977 $ 2,028,744 $ 41,767
<br /> Transportation Aid $ 776,382 $ 1,029,441 $ 253,059
<br /> Pii or Year Tuition $ 2,695,837 $ 1,367,364 $ (1,328,473)
<br /> Current Year Tuition $ 1,080,000 $ 950,000 $ (130,000)
<br /> Excess and Deficiency(E&D)Funds $ 540,000 $ 650,000 $ 110,000
<br /> Current Year Nonresident Capital Fee $ 508,033 $ 289,332 $ (218,701)
<br /> Prior Year Nonresident Capital Fee $ 591,967 $ 300,000 $ (291,967)
<br /> Assessments $ 19,461,392 $ 22,395,741 $ 2,934,349
<br /> TOTAL $ 27,640,588 $ 29,010,622 $ 1,370,034
<br /> Lexington's Assessment
<br /> The remainder of the revenue is raised through assessments on member towns and tuition for out-of-district
<br /> students. Member towns are assessed a share of the District's total costs for the upcoming year, net of the District's
<br /> non-assessment revenue,based on four components:
<br /> 1. The State-Required Minimum (SRM)per-student tuition cost set annually by the DESE,
<br /> 2. An additional charge for operating costs in excess of the SRM that is allocated based on the four-year
<br /> average student enrollment,
<br /> 3. Transportation costs,
<br /> 4. Debt service costs from capital projects.
<br /> The first three assessment components fund the member's share of the school's operating costs. Debt service is
<br /> charged to member towns using a two-part formula. One percent of the debt service cost is assessed equally to each
<br /> of the nine member towns, and the remaining 91% is apportioned based on the most recent four-year rolling
<br /> average of student enrollment and the State's "combined effort"factor as determined by the Chapter 70 formula.
<br /> A breakdown of the Town's FY2022 and FY2023 MRHS assessments is shown below. The projected assessment
<br /> for FY2022 is $3,223,898, an increase of$93,860 (3%) over the final FY2022 assessment.
<br /> Projected Lexington Assessment—Based on Unapproved House-2 Budget Bill
<br /> Enrollment Basis Assessment Components Per-Student
<br /> FY2022 FY2023 FY2022 FY2023 FY2023
<br /> State-Required Minimum 77 68 $ 1,156,993 $ 1,158,939 $ 17,043
<br /> Regular Day Students 59.38 63 $ 935,559 $ 969,283 $ 15,385
<br /> Transportation 77 68 $ 109,594 $ 78,524 $ 1,155
<br /> Total Operating Costs* $ 2,202,146 $ 2,206,746
<br /> Debt Service 59.38 63 $ 927,892 $ 1,017,152 $ 16,145
<br /> TOTAL ASSESSMENT $ 3,130,038 $ 3,223,898
<br /> Annual%increase (decrease) 9.32% 3.00%
<br /> *Starred rows in this table use average enrollment over the prior 4 years, while non-starred rows use current
<br /> enrollment. The respective per-student amounts cannot be combined arithmetically.
<br /> The FY2023 operating cost assessment per student (excluding debt service) works out to $32,452 (based on
<br /> Lexington's October 2021 enrollment of 68 students), an increase from last year's per-student cost of$31,016. Due
<br /> to the assessment formula, during periods of growing enrollment the assessed per-student amount lags behind short-
<br /> term enrollment trends. A rising enrollment will tend to lower per-student costs (and vice versa) until the 4-year
<br /> average stabilizes. Enrollment from other member towns can also affect this figure, as Lexington's percentage of
<br /> the total member enrollment changes.
<br /> We anticipate further changes to the projected revenues and budgeted expenses in the MRHS budget following
<br /> publication of this report. It is likely that the assessment will be adjusted prior to being presented to Town Meeting.
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