By NEIL ZOLOT
NORTH READING — The initial estimate for the Fiscal Year 2024 School Department budget is $37,768,204, an increase of $2,058,874 (5.8%) from the FY23 budget of $35,709,330.
A preliminary budget presentation made to the committee recently by Superintendent Dr. Patrick Daly and Michael Connelly, the Assistant Superintendent for Finance and Operations, termed the proposal “a continuation of the program now in grades K-12 and costs to properly maintain all five schools and surrounding campuses.”
The FY24 budget is also designed to:
• maintain educationally sound student/teacher ratios, especially at the elementary level;
• continue academic support systems to address any areas of learning loss and ensure a pro-active response with intervention strategies;
• maintain adequate health and safety services for all students, staff and the community;
• continue to address the social, emotional and mental health needs of all students; and
• enhance the curriculum leadership model in the district to support all educators in curriculum, instruction and assessment strategies.
These goals all tie into the North Reading Public Schools 2025 Strategy for the Future plan.
The estimated FY24 budget of $37,768,204 is the total remaining after $3,497,313 in offsets from grants, revolving accounts, user fees, kindergarten and preschool tuitions, and athletic and performing arts receipts as part of a gross budget of $41,265,417.
It is comprised of $31,339,732 in salaries ($32,424,232 minus $1,084,500 in offsets) and $6,428,472 for other expenses ($8,841,285 minus $2,412,813 in offsets). Salaries totaled $29,816,507 in FY23 and $28,560,606 in FY22 budget.
Connelly categorized salaries one of the drivers of the budget, along with operation and maintenance costs and Special Education costs, which are often hard to determine due to the fluctuating need for out-of-district placements. The FY24 budget will also be impacted by a 14% increase in out-of-district tuition rates imposed across the state to all school districts to cover the increased costs to the providers of private day and residential schools for students with severe developmental disabilities. Public school districts are billed for these costs.
“There’s always a structural deficit and little in the way of discretionary spending,” Connelly said. “Costs grow at a faster rate than revenue. We’re doing a good job controlling costs, but we’re seeing inflationary costs. Nothing gets cheaper year-to-year. It’s not unique to North Reading. There are big picture challenges every community is facing funding a school budget.”
Connelly added that the town is “almost at the state average in these statistics,” including budgeting 27% of available school funds for Special Education.
New staffing positions proposed in the budget total $303,785 and are comprised of $118,147 for a district-wide 1.0 FTE STEM Coordinator, $111,383 for a 1.5 FTE Middle School and elementary-level academic interventionist/coach, and $74,255 for a 1.0 FTE elementary-level school adjustment counselor. The new positions are not the result of a significant increase in the number of students. “We have no need for new staff because of enrollment,” Connelly reported.
The budget breaks down to 77.2% for instructional services, 9.4% for operations and maintenance, and 4.7% for student services. Overall 83% is dedicated to salaries, but not all salaries are related to instruction. Budget drivers continue to be contractual salary obligations, fixed operational costs and Special Education costs. Savings can be gleaned through providing in-house Special Education services, pursuit of grants and energy efficiency, but Connelly warned: “The clock is ticking,” in regard to the $213,000 North Reading received in Elementary and Secondary School Emergency Relief funds related to the pandemic. “This is the final year we’ll have access to those funds,” he said.
Local taxes constitute 74% of revenue, with state aid supplying 12.3%, local receipts 7.3% and fees and grants 6.4%. Connelly said that split “doesn’t change often.”
During ongoing discussions with the Financial Planning Team, available revenues currently total $36,438,179 for the School Department budget. “It’s a fluid number,” Connelly explained. The amount of state aid may ultimately affect the appropriation as well.
Budget public hearing Monday
The School Committee will hold its annual public hearing on the budget on Monday, April 10 during which updated budget figures may be presented and discussed by the committee members and administration.
The School Committee is expected to vote on the budget at its meeting on Monday, April 24 followed by the committee’s second FY24 budget workshop on Wednesday, April 26 at 3 p.m., if necessary, and a presentation to the Finance Committee later that evening.
It is anticipated that the Select Board will finalize the Town Meeting warrant at its meeting Monday, May 8. The Annual Town Meeting is Monday, June 12 in the gymnasium at NRHS.
“We want people to be involved,” School Committee Chair Scott Buckley said of the various steps in the process.