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APPROPRIATION COMMITTEE-2019 ATM
<br /> was first assessed debt service costs for the new facility in FY2017, and the annual amount of the Town's
<br /> capital assessment will steadily grow to over$675,000 by FY2021.
<br /> The district currently has ten member towns.Following a negative vote by the residents of one of the mem-
<br /> ber towns,the Town of Belmont,in a special district-wide referendum election held in 2016 to approve the
<br /> construction of the new MRHS facility,and with the consent of the remaining member towns,Belmont was
<br /> scheduled to withdraw from the district effective July 1,2020.It appears that there is currently a movement
<br /> in Belmont to rescind that action.However,no official action has yet been taken to effect such a rescission;
<br /> until that occurs,there is no way to know how the district would legally and financially accommodate such
<br /> a request, or whether Belmont's return to the district might be conditioned on a commitment to pay its full
<br /> share of the debt service costs for the new facility.
<br /> District Budget Overview
<br /> This is the first budget for the school in the new building. The budget has an additional $264,000 of costs
<br /> related to the opening of the new building. Some of the costs are one-time costs, including $40,000 for
<br /> purchasing silverware for the culinary arts and school lunch programs, equipping a darkroom, carrying
<br /> insurance for the old building before it is demolished, a$35,000 contingency for other instructional equip-
<br /> ment; and funding for additional staff time prior to school opening for initial set-up of the work spaces.
<br /> Ongoing costs include 2.0 new FTE's of staff, and conversion of 3.0 FTEs of custodial staff to contractors.
<br /> Utility costs are projected to drop in the new building, and a photovoltaic canopy has been proposed to
<br /> further offset energy costs.
<br /> One of the principal operating budget drivers is enrollment, which has continued to drop and is below the
<br /> new building target size of 628 students. As of October 1, 2018, 516 full-time students (high school and
<br /> post-graduate) were enrolled, of whom 46.5% received special education (SPED) services. Roughly 69%
<br /> of high school students were from the ten in-district towns while 31%were from out-of-district towns.Total
<br /> full-time enrollment decreased by 52 students, with in-district enrollment increasing 17 students and out-
<br /> of-district enrollment decreasing 69 students. On a more positive note, in-district freshman enrollment has
<br /> remained steady for the prior three years, and in-district applications for the upcoming year are up 10%,
<br /> even with the departure of some towns from the district.
<br /> Out-of-district recruiting remains a challenge. The primary reason is a change in Chapter 74 regulations
<br /> made several years ago by the Massachusetts Department of Elementary and Secondary Education(DESE)
<br /> that prohibits the enrollment of out-of-district 9`t'grade students if their own town has a vocational-technical
<br /> program. This change lowered the enrollment from many towns that had traditionally sent a large number
<br /> of students to Minuteman.
<br /> Despite lobbying efforts by MRHS,the state-imposed tuition rate set by DESE continues to underfund the
<br /> District. The base out-of-district tuition was set at $17,266 per student in FY2019 (expected to increase
<br /> 2.5%to $17,698 for FY2020). By comparison,the average per-pupil cost for Lexington students at MRHS
<br /> is roughly twice that amount(see table and discussion below).
<br /> In addition to the base tuition,towns sending out-of-district students will be assessed a"capital fee"which
<br /> represents a share of the debt service for new building. The out-of-district per-student capital fee has been
<br /> set by the state at$4,651 or$6,201,depending on the level of vocation-technical programs that their sending
<br /> community provides.The capital fee revenue will be applied to next year's debt service,reducing the mem-
<br /> ber towns' contributions. Sending towns are also responsible for providing transportation to their students.
<br /> In addition, if students receive SPED services, their sending towns are assessed a supplemental SPED tui-
<br /> tion charge. The district will be recommending an increase in the out-of-district per-student SPED tuition
<br /> from$5,300 to $6,200.
<br /> Staffing changes include a net decrease in academic, vocational, administrative, and support staff of 3.5
<br /> FTEs. With this latest decrease, there has been a 19.5 FTE reduction in positions since FY2015 as a result
<br /> of declining enrollment. Despite the reduction in FTEs, salaries for FY2020, which make up 60% of the
<br /> operating budget, are increasing $388,000 after factoring in contractual obligations.
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