Lincoln-Sudbury Regional High School FY 2021 Budget Update

Lincoln-Sudbury Regional High School Proposed FY 2021 Budget Update Presentation to Lincoln-Sudbury School Committee January 28, 2020

Enrollment Projection

Current Median Class Size Department Median Class Size Computer Science 23 English 22 FATA 19 History 23 Math 21 Science 23 Wellness 20 World Language 19

Total Proposed FY 21 Budget $34,380,095 = Level service, including LS Academy $33,915,340 = Budget Guidance $ 464,755 = Funding Gap Reference: 1% = $328,864 comparison refers to total FY 20 appropriation

Financial Assumptions Level funding federal grants State funding reflects Governor s Budget Salaries budgeted per agreements Reductions to instructional staff to meet guidance Reorganization and reallocation of resources for student services 10-12% increased rates to health insurance over actual (net 4.22% increase) 7.36% increase to non-MTRS pension funding 11.43% increase to Transportation (Regular and Special Education) Generally level funded expenses Decrease to utilities Continue funding toward OPEB Liability ( FY20 Total: 1.5 million) Includes operational costs for LS Academy Circuit breaker reimbursement estimated to actual projection (1.5 million)* Level funding OOD Tuition* Special education transportation re-bid with no change as a result No change to current student fee structure Debt service continues to decrease Includes annual capital request to replace aging structures and equipment Includes possible use of E & D for replacement of stadium field Includes possible use of E & D funding to restore 420 Lincoln Road

Assessment The net operating cost for LS minus other revenue sources such as Chapter 70 State Aid, Transportation Aid, Circuit Breaker Reimbursement, Medicaid, and other receipts is a shared cost between Lincoln and Sudbury. Historically, we have apportioned the shared cost by using a formula that combined minimum contribution levels determined by the state for each town plus a ratio reflective of the comparative three year enrollment for the remaining difference in excess of the minimum contribution per the regional agreement. For FY21 we are using a flat rate set by Sudbury at 3.5% growth over the FY20 Assessment which is $26,712,280. Separately, Lincoln has utilized a new tool for modeling the Required Minimum Distribution which yielded a preliminary assessment of $3,647,523. This was subsequently adjusted upward to $3,676,355 to match the Sudbury growth target of 3.5%. Finally, per the regional agreement capital expenses will be apportioned 87.83% for Sudbury and 12.17% for Lincoln.

Lincoln-Sudbury Regional High School FY 2021 Budget Proposal

Projected Adjustments to close budget gap Actions taken to control operational costs o Utilities o Special education transportation neutral re-bid o Health insurance re-bid o L-S Academy Increase to Ch 70 Funding neutralized by reduction to transportation reimbursement Remaining estimated funding gap = $464,755 Reductions to instructional staffing to close the gap 3.5 FTE o $349,405 o Incremental reductions (.75 to .25 affecting English, FATA, Language, Math, History, Student Services, Wellness) o Minimal to moderate impact on class size due to overall modest decrease in enrollment o Limits capacity to adjust for students with high needs o Reductions beyond this level would cause significant impact to class size and range of program offerings and choice Reductions to expense lines o $115,350 o Further reduction to utilities o New reductions to instructional capital o TBD Health insurance rates (February)

Positive Financial and Programmatic Impact of L-S Academy Target FY20 enrollment 5 to 10 students. Current: 13 Complex range of student needs being newly met o 45 day assessments o In lieu of private day program placement o In lieu of private residential placement January 15, 2020 o Tuition cost savings: $361,000 o Tuition cost avoidance: $870,000 o Expenses: Salaries and benefits (4 FTE): $240,000 Transportation, leasing, furnishings and equipment, food service delivery ($60,000) Note: L-S teachers are driving to L-S Academy to teach classes and students are not allowed to transport themselves to L-S Academy because it is located separate from the main campus

FY 21 Capital Request All items for replacement Total Sudbury Lincoln 1. Chain link fence at Turf Field 2. Student Van 15 Passenger 3. Pick Up Truck/Plow 4. Aerial Lift $125,000 $45,000 $40,000 $46,600 $109,787 $39,523 $35,132 $40,928 $15,212 $5,476 $4,868 $5,671 Sudbury share @ 87.83% Lincoln share @ 12.17% L-S Football Stadium Field $675,000 L-S/Sudbury 50/50 Share 420 Lincoln Road $500,000 L-S E & D Only

Anticipated Request for E & D Application for certification of FY19 E & D submitted mid-October 2019 Once FY19 E & D is certified, anticipate two requests for use of E & D o Up to $337,500 for up to 50% of cost to replace Community Field also referred to as Stadium Field. The field is scheduled proportionately for use 50/50 between L-S and Sudbury Park and Recreation. Target replacement date: Summer 2021. Target bid date: Winter 2020-21. o Up to $500,000 for completion of restoration of 420 Lincoln Road for use of LS Academy. Total estimated project cost: $800,000. $300,000 previously approved and available. Target completion date: January 2022. Formal approval of use of E & D can only be commenced and completed after the E & D is certified. Certification for any fiscal year expires on June 30 of that year. Therefore, this is notice approval will be sought as soon as certification is received before certification expires. Amendment to FY20 Budget (or FY21, depending on timing). Approval process: o LS School Committee o Notice to Boards of Selectmen o 45 days* to not take further action or call for TM to authorize Both Lincoln and Sudbury have been alerted for possible need of warrant articles.

Concerns for FY22 and FY23 3% Revenue projection increase for FY22 based on FY21 assessment is fewer dollars than received for FY21 revenue increase 3.5 FTE reductions made for FY21 are based on level enrollment projections FY19 through FY22. Steady annual no increase or reductions to utilities for seven years SOA extremely modest impact to LS FY21 through FY27

Budget Timeline Dec 09 Budget Presentation to L-S Staff Dec 09 Sudbury Finance Committee FY20/21 Budget Discussion Dec 10 Presentation to LS School Committee Dec 11 Lincoln Joint Budget Workshop #1 Dec 31 Budget financial submission to Town of Sudbury Finance Director Jan 14 Budget Strategies Task Force Jan 23 Governor s Recommended Budget Released Jan 27 Sudbury Finance Committee Budget Presentation Jan 28 FY 21 Budget Hearing Jan 29 Lincoln Joint Budget Workshop #2 Feb 4 LS Budget Vote Mar 28 Lincoln Town Meeting May 4-6 Sudbury Town Meeting