ANNUAL REPORT 2021–2022 | 7
Annual Operating Budget Growth (%)
Budget History Since Full Regionalization ($/millions)
5%
$100
$8
Operating Budget Total (left scale)
4%
$7
$80
Average since full regionalization
First year of new Twin School debt
3%
$6
$60
$5
2%
$4
1%
$40
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY33 Approaching a decade of full regional existence, the District has experienced a moderate expansion during that time relating to its operating budget. After year-over-year budget increases exceeding 4% in the first two years as shown, the last six years of District operating budgets have averaged less than 3%. This compares most favorably with similar trend data of districts comparable to A-B.
Capital and Debt Service (right scale)
$3
$20
$2
$0
$0
FY14
FY15
FY16
FY17
FY18
FY19 FY20 FY21
FY22
FY21
The double-scaled chart above isolates the District’s budgets for capital and debt from operations; the total is the annual appropriation. Capital budgets have been the more volatile. Through FY16, less attention was paid to capital needs; then, through FY19, outlays for capital expenditures increased steadily; a long- term capital improvement plan (CIP) began in FY20. Operating budgets have increased at a moderate pace (2–4% during the period) generally due to the inflationary effect of labor and other contracts, and for instructional materials and supplies. Targeted program initiatives, such as adding special education staff to better provide for in-district student needs, also added to personnel costs, but a by-product appears to be a downward trend in high- cost out-of-district tuitions. The most volatile operating budget cost category has been health insurance premiums for employees and retirees; while premium costs increased an average of 4% during the period, year-to-year budget changes have almost never been “average” (from a 5% decrease to an 11.5% increase).
Financial Outlook—FY2023 and Beyond
E&D–FY16–22 ($/millions)
The District has financially survived Covid (at least so far), but its impact presents lasting educational and mental health challenges, which add to a perceived darkened financial horizon in the form of: • Flat revenues; assessments and state aid = 99% of budget sources • Previous committed initiatives (MTSS, eliminate ADK tuition, etc.) • Enrollment losses (to Minuteman, charters, etc.); class sizes have decreased, but inability to benefit from increased Chapter 70 Aid The District has financial reserves that have been used to fund initiatives (new school feasibility study, establish capital stabilization fund) and significantly reduce each year’s assessment to member towns. Since full regionalization, the District has used and replenished E&D equally, as shown at left. While turnbacks have consistently averaged just over $1m per year, use of E&D (particularly toreduce assessments) have grown to $1.5m since FY20, a level that cannot be reasonably sustained.
$8
$7
$6
$5
$4
$3
■ Budget Turnbacks to E&D ■ E&D to Fund Initiatives ■ E&D to Reduce Assessment
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