BUDGET SUMMARY
The M.S.A.D. No. 75 Board of
Directors, through its Finance Committee (composed of representatives from each
of the District towns), has worked since January to prepare a budget to present
to the voters on
|
Fiscal Year |
Total Subsidy |
$$ Change |
% Change |
|
2002-03 |
$13,767,184 |
$573,862 |
4.3% |
|
2003-04 |
$13,433,346 |
($333,838) |
-2.4% |
|
2004-05 |
$13,498,066 |
$64,720 |
0.5% |
|
2005-06 |
$15,329,646 |
$1,831,580 |
13.6% |
|
2006-07 |
$16,465,891 |
$1,136,245 |
7.4% |
This budget document is the sum of the Board’s FY ‘07 budget preparation work. We have built a budget predicting a state subsidy increase of $1,136,245. This increase in subsidy is a result of the application of the new state funding formula called The Essential Programs and Services Model. Where the previous state funding was expenditure driven, relying in part on previous years’ budgets, the new formula is cost driven, anticipating what it should cost to provide our students with the “essential programs and services.” The new formula also targets specific expectations in technology and early intervention, and provides dollars per student to meet them.
While the new model provides the District with increased subsidy for the second time in two years, the State is only providing funding based on 90% of the EPS amount set by the State. The model establishes an “allocation” of dollars, in the District’s case, $28,460,454. This figure is 90% of the figure the State believes the District needs to fund its defined essential programs and services. The full 100% amount would be $30,593,254. At the same time, the allocation does not include all District programs and services. Advanced Placement courses, adult education, vocational adult education, extracurricular activities and federal 504 program requirements are not included. Therefore, even if the subsidy from the State was based on the 100% allocation, it would not take into account the District’s entire program needs.
Again this year, fixed costs are driving the budget increase. This was due to increases in the areas of electricity, motor and heating fuels, contractual salary obligations, Medicare, Social Security, and insurance. Other fixed costs include meeting our obligations to provide an education for our Special Education population. The proposed budget is increasing $1,660,454 (4.91%). However, with the increase in State subsidy and the use of fund balance as revenue, the local contribution will only increase by $246,334 (1.39%). This Report will provide greater detail.
We are grateful
for the communities’ consistent and generous support of our schools and
programming. Much of what we are able to do is only made possible by the
generosity and volunteerism of parents and community members. We urge you to
vote on