Newsletter #1 - Q&A for Head of Finance for Scituate Public Schools - Paul Donlan

Q&A for Head of Finance for Scituate Public Schools - Paul Donlan

Can you simplify town/school finances into one, short paragraph?
Did you know the “State” of Massachusetts isn’t a state but a Commonwealth? In the time it takes you to ponder the difference you’ll know why so few of us understand the basics of our town’s budget process. Here’s the CliffNotes version:

Money that pays for our public schools, public safety, public library, etc., comes primarily from our property taxes or the“Levy”. Massachusetts “Proposition 2 ½” places constraints on the amount of the levy raised and how much the levy can be increased year to year.

Levy X 2 ½ = The amount of money our town can raise through taxation or “Levy Limit”

Added to the Levy Limit is:
Aid from the State (or Commonwealth) that is impossible to forecast accurately each year and is eagerly awaited by towns throughout Massachusetts and comes in a 2 page document called the Cherry Sheet. Included is a chunk of the Commonwealth’s Lottery proceeds. For 2007 it was $400K!
Local Receipts (your car’s excise tax and the parking fine you got with it as well as interest on the town’s cash on hand.)
New Growth (those condos sprouting up all over the Harbor as well as the addition that just went up next door)

Add this up and subtract our payments back to the Commonwealth (offsets) and any deficits (usually “snow & ice”, no one in New England can be trusted to accurately forecast this) and you are left with the available money to split between the Town budget and the School budget. Scituate works with a 66/34% split, respectively. In fiscal year 2007 the $36,476,087 figure split left the Schools with a budget of $24,074,217 within which to work and the Town $12,401,870.

Now, figure in rising pension and health insurance costs, new fire stations, a senior center, an updated English language program, teachers to make up for a growing student body, the list goes on and the well runs dry. What happens when a town’s calculated Levy Limit no longer supports its needs?

Proposition 2 ½ does provide communities with some flexibility. It is possible to levy above the limit on a temporary or permanent basis through an Override or Debt Exclusion. An override enables a community to permanently increase its levy limit and a Debt Exclusion allows for a temporary increase over the levy limit and is used to fund capital projects only. These increases must be approved by a majority vote from the community.

For more information go to the department of Revenues website www.mass.gov/dis

Give us a step by step of the school budget process.
Give us a step by step of the school budget process.
The school budget is separated into 7 sections; Central Administration, High School, Gates, Jenkins, Hatherly, Wampatuck and Cushing, each with subsets that include Personnel, Expenses, Equipment and Contract Services.
STEP 1: I am given information from the principals and department heads from which I build the budget and present it to the Superintendent.
STEP 2: We have budget meetings with the school leaders and break down each individual budget with supporting documentation and say yes or no to each line item requested.
STEP 3: The Superintendent presents the budget to the School Committee, along with a recommended dollar figure.
STEP 4: A Public Work Session is held for review and recommendations to the budget from the community.
STEP 5: Once the budget is finalized and approved by the School Committee, it moves on to the Advisory Committee (the Town’s Finance Committee) and the Board of Selectmen for approval.
STEP 6: The budget is voted on at the Town Meeting in March.
*The 2007/2008 Budget Presentation and Calendar is on the school website on the Superintendent’s page*
*The 2007/2008 Budget Presentation and budget calendar is on the school website on the Superintendent’s page*

How can parents become involved in the budget process?
The role of the community in the budget process is to be active participants before, during and after the Annual Town Meeting in March.
(1) Talk to the principal of your child’s school before the budget is drafted with your thoughts and concerns about the quality of education offered to your child and the district. Offer to be a part of the budget deliberations and help to ensure the enhancements you and your PTO have identified are addressed. The voice of the community is heard loudly –go to meetings.
(2) During the budget process ask questions, offer ideas and be active participants. Attend and support your ideas at the School Committee, Public Work Session, Advisory Board and Selectman meetings.
(3) Discuss the budget during the process with all of your friends, neighbors and family. Be sure that school and town leaders make the right decisions as it relates not only to your child’s school but to the Scituate school system as a whole.
(4) Attend the Annual Town Meeting in March and VOTE! Make sure your friends and family vote! Be there when the Town decides how much money is allocated to the schools.