As mentioned in an earlier blog post, social networking sites can be wonderful sources of information. This is true when the information posted is factual, empirically based, and is written with the intent of promoting some type of public good. In many cases however, posts on sites such as Facebook can be written by individuals who misinterpret facts, only serving to proliferate their own misunderstandings.
Recently I was made aware of some military terminology that is fitting for this situation. In war there are two types of truth. The Official Truth is what people are willing to say publicly about things, and the Ground Truth is terminology that accurately reflects real life events. The two statements below provide an educational example of Official Truth vs. Ground Truth.
Official Truth: Our students MCAS scores are higher than many students statewide who are from similar socioeconomic backgrounds. This statement may be viewed as propaganda.
Ground Truth: Our students are consistently not meeting accountability standards set forth by the state. They are failing the MCAS in alarming numbers. This statement is a cold hard fact.
This blog post is written in response to a recent post on Facebook by a member of the Orange Taxpayers Association. In an effort to provide readers with Ground Truth, I will dissect the post one statement at a time. I have found this level of honesty about our situation is appreciated by many faculty and parents in our school community.
Ms. Piro's statements are in black
Mr. Baldassarre's statements are in red
Ms. Piro: I have asked Mr. Baldassarre how much in extra expenses it will cost the town if we regionalize.
Mr. Baldassarre: This statement is true. To clarify, I have posted the entire electronic correspondence from Ms. Piro with my response to her at the bottom of this post. You can read every question that Ms. Piro asked of me, and every response that I provided.
Ms. Piro: If we regionalize- all the elementary teachers pay will go up to meet the pay already received at the Mahar level, if the pay raises outweigh the bus savings, then financially it will hurt the town.
Mr. Baldassarre: The statement made by Ms. Piro here is not ground truth. Our consultants are currently conducting a financial analysis of the exact increases in salary for teachers if they are negotiated that way. In order for the salary schedules to be made final three teacher contracts must be merged and three non teaching contracts must be merged. All six of these mergers will involve intense negotiations with the new school committee.
A Mahar teacher with a Masters Degree in his/her first year of teaching is paid $305.00 less per year than a teacher with a Masters Degree at Orange Elementary.
A Mahar teacher with a Bachelor’s Degree in his/her 14th year of teaching will be paid $1,015.00 less than an Orange Elementary Teacher in his her 14th year of teaching if he/she has a Bachelors Degree and 18 additional credit hours.
You see, our pay scales are different. They are available for any reader to see. And I recommend perusing these documents before publishing statements about them. The bottom line, ground truth is that the salaries have to be negotiated. The union and the school committee have the right to collectively bargain.
Ms Piro: I also asked if we are implementing the suggestions from the DOE report of 2011, the suggestions in this report which I posted here a couple weeks ago, had very serious issues with the curriculum in certain areas, critical thinking skills and conversations for the students, continuity of curriculum from Fisher to Dexter to Butterfield, and the end result being poor MCAS scores, these are not money problems, but management problems, have we fixed these issues yet?
Mr. Baldassarre: The above is not true. As you will see in the correspondence posted to the blog from me to Ms. Piro, no such question has ever been asked of me. Unfortunately, those opposed to regionalization have failed to express any concerns of the quality of our educational programs via e-mail or in open sessions. This should alert those who are interested in improving education for our students.
Ms. Piro: Not enough information on the questions I am asking to warrant the regionalization at this time.
Mr. Baldassarre: We will have an informational session on October 13, 2011 here at Mahar at 7:00 PM. This is an open meeting. I have posted information on this blog and there is central office consolidation website on the mahar webpage (http://www.rcmahar.org/central-office-consolidation-website/). There readers can find a video in which we engaged a public question and answer session about this topic.
Ms. Piro: If we fund our elementary and make the changes the DOE has suggested, then our students will get a better education and we will still own our school system, I think these needs to be done first before we jump into a new system that so far, is only offering a savings to the town for one year.
Mr. Baldassarre: The elementary schools have been funded up to 20% less than the average of districts across the state in 2010, 2011, and now in 2012. The students in Orange are not being given the opportunity to compete with students from more than 300 districts in Massachusetts because of the funding issues. What Ms. Piro says is true however. If the elementary schools were given a little more than $1,000,000.00 more each year the children would be subject to a higher quality education. Of course another way to solve this issue would be to increase district capacity. This can be achieved through regionalization.
Ms. Piro: Bus costs fluctuate; pay raises only keep going up. We cannot afford to make the wrong decision.
Mr. Baldassarre: Bus costs do fluctuate. Fortunately for those in regional school districts like Mahar, our transportation costs are reimbursed by the state. This year Mahar received $309,502.00. Orange received $0.00. The state pays a portion of regional transportation. In Orange, transportation is paid for by the taxpayers.
Electonic Correspondence Below: Sent to from Mr. Baldassarre to Ms. Piro
Copied and Pasted to this Site September 2, 2011
Ms. Piro's statements are in black
Mr. Baldassarre's statements are in red
From: Michael Baldassarre
Sent: Monday, August 15, 2011 6:04 PM
To: 'nqac@verizon.net'
Subject: RE: Regionalization
Ms. Piro: Hi Mike - Brenda Piro here- I couldn't make the last meeting but will make the next - It was posted for Sept 1 st, it was also posted albeit FB that the BOS are in support of this- is that true?
Mr. Baldassarre: Hello Brenda and thank you for your correspondence. The next regionalization planning meeting is in fact on September 1, 2011 at 6:30 PM in the Media Center at Mahar. I have not been given any indication that the Board of Selectmen are against our regional effort. If this were the case, I would have to ask for reasons. You see, we have already consolidated central offices, special education administration, maintenance, technology, and cafeteria services. The final piece, an approved agreement means up to $300,000.00 in additional aid every year. Why would one turn down such funding???
Ms. Piro: I am familiar with the 2 assessments, one question I have is a comparison of what the assessment would be for elementary 2011/12 vs what they asked for at town meeting.
If we were a region- what assessment would be used?
Mr. Baldassarre: I am not clear on your question about the “two assessments.” There is really only one assessment – the statutory method that has ever been used. In this case, 3 of 4 towns must agree to pass a budget. The alternative assessment cannot be characterized by using terminology that defines it as a single assessment. This assessment methodology can be different every year. It can be changed at the discretion of the school committee. All four towns must agree in order for any alternative assessment to be passed.
If we become a larger region the rules for assessing the towns would be the same. 3 out of 4 for statutory, and 4 out of 4 for any alternative to that.
Ms. Piro: they asked for 5385037 and got 5083060- in the new regional scenario- what would that figure be?:
Mr. Baldassarre: These numbers are incorrect. The budget was again reduced to 5.037 million dollars. It appears very likely that Net School Spending will not be met in fiscal year 2012 – which is a real travesty. This will mean that NSS has not been met in three consecutive years. On average schools in the commonwealth are funded at 13% above NSS. Orange Elementary’s funding being below NSS means that our students receive close to 20% less than students across the state. But to answer your question, we would not know the outcome of the assessment until the towns voted. It is up to the school committee and the people of the towns. To illustrate this, I have attached a document that defines the proposed process.
Ms. Piro: I realize this is simplified as people are told there will be additional revenues coming in if we regionalize - but this is the question taxpayers are concerned of - a simple breakdown of funds that will rise if we consolidate would be helpful. I think if the answers are " shot from the belt" rather than the over complicated - take the long road around so as to create confusion- (not that you do it ) citizens wil understand, many citizens just want the financial breakdown- not the structure that gets us to the finances.
Mr. Baldassarre: It is true that this topic is complicated, and we are doing our best to ensure that everyone has the most accurate and empirical information. In a nutshell, here is what we stand to gain by regionalizing:
1. $50.00 in one-time bonus aid per student. With approximately 1800 students this equates to $90,000.00
2. 56% in regional transportation reimbursement. This means approximately $200,000.00 for Orange every single year. This can go up, and has been as high as 85% in recent years.
Ms. Piro: This town has a long history of frugal savers- thats how our coffers 10 years ago had 7 million in them, they have listened to our governance tell them that do this- this is good, and watched as the 7 million was spent in less than a decade.
Mr. Baldassarre: Right now, things do not look so optimistic. It is not my position to comment on town matters. As an ambassador for the schools however, state takeover of the elementary system should be on the radar of the town’s leadership. The Department of Elementary and Secondary Education has implemented a serious system for school accountability under the No Child Left Behind Act. It should not be taken lightly.
Ms. Piro: So..... you need to understand this past with our town. Citizens are extremely upset, with good cause. We have seen the management of our town not go to the good of the community. We pay people here the same pay to do a job that others do with much greater populations and responsibilities. We have always been a poor town- we are the 9th poorest in 353 communities in Mass. We have the 21st higest tax rate, our children are not doing well in school, and we act( financially) like we have cadillac services,of which many would beg to differ.
Mr. Baldassarre: It is my sincerest hope that I will have be able to provide you along with our parents and teachers with an understanding of all that has taken place over the past few years. I do not do this by stating my opinions however. I will be rooting any and all statements in facts that are made available via audits and document analysis.
Ms. Piro: also- it was stated that Orange would have to accept the budget or it wouldnt go through- I find that hard to believe- could you clarify?
Orange would have 5 members- other towns 7 ? Is this true?
Mr. Baldassarre:
Orange – 5
Petersham – 2
New Salem – 2
Wendell – 2
It takes a 2/3 vote of the school committee to pass a budget. This means that 8 of 11 must agree to pass a budget. If Orange representatives choose to, they will be able to stop a budget from moving forward since they will have 5 members.
Ms. Piro: what would the sub committes function be, and thier powers- if any?
Mr. Baldassarre: Subcommittees advise the full committee.
Ms. Piro: Information told to citizens at Fincom was the audit hadn't been done since 2010- FB parent at school meeting said 2003- clarify?
Mr. Baldassarre: The end of year report is required pursuant to 603 CMR 10.10 to be audited every year. Orange Elementary has not had its end of year report audited since 2002. I have attached a letter from DESE ordering that an audit of Fiscal Year 2010 be completed. Once information is available I will issue a report.
Ms. Piro: Thank you for your time- It would be nice to sit and ask questions, If you have time for a 1/2 hr meeting I would surely appreciate it- Talk Soon
Mr. Baldassarre: I’d love to get together. Just let me know what works for you.
Michael Baldassarre, Superintendent of Schools
Ralph C. Mahar Regional School District
Orange Elementary Schools
Petersham Center School
507 South Main Street
PO Box 680
Orange, MA 01364
Office: 978-544-2920
Fax: 978-544-8383
Website: www.rcmahar.org
Friday, September 2, 2011
Tuesday, August 30, 2011
$chool Choice - Part IV of IV
All of the funds that are taken in by a district for school choice go into a “School Choice Revolving Account.” As you may have read in the School Choice Parts I – III blog posts, the total school choice amount for Petersham, Orange, and Mahar in the 2010 – 2011 academic year was more than in the neighborhood of $1,636,000.00.
At Mahar, school choice funds may only be expended by a majority vote of the school committee. While these funds can be used to fulfill any need of the district, at Mahar they have almost solely been used to reduce the assessments to the towns in each fiscal year. What this means as that the school committee has continually voted to utilize this money as a source of revenue in each operating budget.
At Orange Elementary this has not been the case. Funds from school choice have been continuously utilized to fill gaps that existed in previous operational budgets. This practice brought about a problematic situation at the end of the last school year. You see, when the school choice account reached a balance of $0.00 and the amount budgeted by the town for the purpose of elementary education was at $0.00, there were still unpaid bills in an amount that approached $100,000.00.
This happened because money was being spent before it ever arrived in the district’s school choice account. When the final payment from the state came in less than expected, there was an obvious deficit. This year we will be holding school choice funds with the intention of appropriating them as a source of revenue in the Fiscal Year 2013 budget. So if all goes according to plan, rather than having $5.1 million dollars in fiscal year 2013, the district will have more like $5.5 million dollars at its disposal.
This will return people to work and hopefully provide some funding for other serious needs. But….what if we were able to combine the three school districts’ school choice accounts and have one larger pot from which we draw funds? What if all of our teachers return to work and we are able to increase our school choice students by just five students per grade, Pre-K – 12? Well, we would have close to $2,000,000.00 in school choice revenue.
If the $2,000,000.00 were to be attributed to the entire budget of a Pre-K – 12 regional district, this means that 10% of the school budget would be covered by school choice. In previous blogs I informed readers that on average schools in the Commonwealth are funded at 13% more than the minimum allowed in “Net School Spending.” In the model I have just described, the towns would have only to contribute the absolute bare minimum required by law, and our schools would be funded at very close to the state average.
Let’s face the facts. The children in our region should be given the opportunity to compete with children from other regions. A child in Orange should have the same educational opportunities as students from Leominster, Shrewsbury, and Westwood. You see, when colleges accept students they accept them based on what they know and how well they demonstrate what they know. Our kids should at least have the chance to know what other students know. They will not have these opportunities in huge classes with old textbooks, broken computers, and fewer teachers.
At Mahar, school choice funds may only be expended by a majority vote of the school committee. While these funds can be used to fulfill any need of the district, at Mahar they have almost solely been used to reduce the assessments to the towns in each fiscal year. What this means as that the school committee has continually voted to utilize this money as a source of revenue in each operating budget.
At Orange Elementary this has not been the case. Funds from school choice have been continuously utilized to fill gaps that existed in previous operational budgets. This practice brought about a problematic situation at the end of the last school year. You see, when the school choice account reached a balance of $0.00 and the amount budgeted by the town for the purpose of elementary education was at $0.00, there were still unpaid bills in an amount that approached $100,000.00.
This happened because money was being spent before it ever arrived in the district’s school choice account. When the final payment from the state came in less than expected, there was an obvious deficit. This year we will be holding school choice funds with the intention of appropriating them as a source of revenue in the Fiscal Year 2013 budget. So if all goes according to plan, rather than having $5.1 million dollars in fiscal year 2013, the district will have more like $5.5 million dollars at its disposal.
This will return people to work and hopefully provide some funding for other serious needs. But….what if we were able to combine the three school districts’ school choice accounts and have one larger pot from which we draw funds? What if all of our teachers return to work and we are able to increase our school choice students by just five students per grade, Pre-K – 12? Well, we would have close to $2,000,000.00 in school choice revenue.
If the $2,000,000.00 were to be attributed to the entire budget of a Pre-K – 12 regional district, this means that 10% of the school budget would be covered by school choice. In previous blogs I informed readers that on average schools in the Commonwealth are funded at 13% more than the minimum allowed in “Net School Spending.” In the model I have just described, the towns would have only to contribute the absolute bare minimum required by law, and our schools would be funded at very close to the state average.
Let’s face the facts. The children in our region should be given the opportunity to compete with children from other regions. A child in Orange should have the same educational opportunities as students from Leominster, Shrewsbury, and Westwood. You see, when colleges accept students they accept them based on what they know and how well they demonstrate what they know. Our kids should at least have the chance to know what other students know. They will not have these opportunities in huge classes with old textbooks, broken computers, and fewer teachers.
Thursday, August 25, 2011
School Choice - Part III of IV
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| Trends in School Choice Enrollment Ralph C. Mahar Regional School Orange, MA As you can see from the graph above, School Choice in the Ralph C. Mahar Regional School has changed drastically in recent years. For quite some time more students from Orange, Wendell, New Salem, and Petersham chose to attend middle and high schools in other school districts rather than attend Mahar. A few years ago, the balance of this equation tipped. I would be delighted to go on about the programming at Mahar and Mount Wachusett Community College that draws students from all over Central Massachusetts, but that is not the purpose of this post. The graph above shows the possibilities that arise when academic programming is desirable to those from surrounding towns. In the next school year it is quite possible that Mahar will take in over $1,000,000.00 in school choice funding, with a rapidly decreasing number of students who choose to attend other schools in the Commonwealth. Last year Mahar took in $873,210.00 in school choice funds. This equates to $5,432.00 per student. In my part IV of this blog series, I will focus in on how the three aforementioned school choice accounts can be consolidated for the benefit of all students in our three districts, should regionalization take place. |
Wednesday, August 24, 2011
Sheriff Donelan's Work Crew Gives Butterfield Auditorium Much Needed Upgrade
In the Spring of 2011 I had the privilege of taking a tour of all of the elementary facilities with my friend and former colleague, Dr. Paul Burnim. When I stepped foot into the auditorium at the Butterfield Elementary School for the first time, I looked around in silence. My question to Dr. Burnim, “When was this school built?” soon fell from my mouth. Dr. Burnim then informed me that the school was built in 1881!
My eyes were caught by falling paint from the ceiling; wooden chairs that desperately needed attention; and chandeliers that may very well have been in the room for 130 years. While I could feel the age of the building, I could also feel its warmth. The warmth was exacerbated by the teachers who were in their classrooms interacting with students, the soon to be Mahar students passersby, and the sound of students singing, “America the Beautiful.”
There were so many things on my mind about the up and coming school year, and on the aforementioned day a new thing was added. The auditorium at the Butterfield Elementary School stands as the place where students and parents gather for celebrations of yearly success. It also stands as the auditorium that has housed each and every graduate of the Orange School System at one point or another for the past 130 years. I wondered how room deserving of so much respect could be allowed to look the way that it did.
Not long after this day, I had many conversations about the condition of the auditorium. One of these conversations did not fall upon deaf ears. Enter Sheriff Chris Donelan. I had a conversation with Sheriff Donelan about the auditorium. In that conversation it was it was Chris who reminded me that he along with many Mahar parents, grandparents, and great grandparents stood in that room at one time or another. I recall him saying, “You know, there are more memories in that room than can ever be counted.”
The next day Sheriff Donelan called me with good news. He informed me that he had a work crew from the Franklin County Jail that could come to the auditorium and give it a tune up. Without hesitation, I agreed. Having no idea what the possibilities were, I just hoped that the falling paint could be scraped from the ceiling. Today when I went to the Butterfield Auditorium to meet the Sheriff and look at the work that was completed, I was absolutely amazed.
With little experience on how much labor it takes to scrape, paint, and completely update the appearance a room of this size I am going to have to turn to an expert to understand the dollar value of this work. I have heard jobs such as these costing tens of thousands of dollars. As you can see in the pictures below, the floor, walls, ceiling, and seating all look brand new!
Soon we will celebrate our students' success in the renovated auditorium. Thank you Sheriff Donelan for your assistance and for the generosity of your work crew. Mr. Trill is in the process of planning a September event in which parents, students, and community members can see what I had the privilege of seeing today. It is my hope that you can be our guest.
My eyes were caught by falling paint from the ceiling; wooden chairs that desperately needed attention; and chandeliers that may very well have been in the room for 130 years. While I could feel the age of the building, I could also feel its warmth. The warmth was exacerbated by the teachers who were in their classrooms interacting with students, the soon to be Mahar students passersby, and the sound of students singing, “America the Beautiful.”
There were so many things on my mind about the up and coming school year, and on the aforementioned day a new thing was added. The auditorium at the Butterfield Elementary School stands as the place where students and parents gather for celebrations of yearly success. It also stands as the auditorium that has housed each and every graduate of the Orange School System at one point or another for the past 130 years. I wondered how room deserving of so much respect could be allowed to look the way that it did.
Not long after this day, I had many conversations about the condition of the auditorium. One of these conversations did not fall upon deaf ears. Enter Sheriff Chris Donelan. I had a conversation with Sheriff Donelan about the auditorium. In that conversation it was it was Chris who reminded me that he along with many Mahar parents, grandparents, and great grandparents stood in that room at one time or another. I recall him saying, “You know, there are more memories in that room than can ever be counted.”
The next day Sheriff Donelan called me with good news. He informed me that he had a work crew from the Franklin County Jail that could come to the auditorium and give it a tune up. Without hesitation, I agreed. Having no idea what the possibilities were, I just hoped that the falling paint could be scraped from the ceiling. Today when I went to the Butterfield Auditorium to meet the Sheriff and look at the work that was completed, I was absolutely amazed.
With little experience on how much labor it takes to scrape, paint, and completely update the appearance a room of this size I am going to have to turn to an expert to understand the dollar value of this work. I have heard jobs such as these costing tens of thousands of dollars. As you can see in the pictures below, the floor, walls, ceiling, and seating all look brand new!
Soon we will celebrate our students' success in the renovated auditorium. Thank you Sheriff Donelan for your assistance and for the generosity of your work crew. Mr. Trill is in the process of planning a September event in which parents, students, and community members can see what I had the privilege of seeing today. It is my hope that you can be our guest.
School Choice - Part II of IV
As you can see from the graph above, in 2010 -2011 the Orange Elementary Schools had 82 students from other towns. Their families chose Orange Elementary rather than their home school districts. Since Orange Elementary received $393,019.00 in Fiscal Year 2011, each choice student brought only $4,770.00 to the district. You will note that this is significantly less than the per pupil amount that was cited in my most recent blog post about school choice in the Petersham Elementary Schools.
The Commonwealth of Massachusetts has a formula by which towns and school districts are financially punished for not meeting Net School Spending Requirements. The Net School Spending Requirement is the absolute minimum amount allowed to go to public education in each town. Unfortunately for the Town of Orange and the Orange Elementary Schools the absolute minimum was not met in Fiscal Year 2010.
It is safe to say that the state allocates more than $5,000.00 per school choice student. In some cases the state may allocate more for individual students based upon their need for special education services. It has been estimated that the Town of Orange missed out on around $50,000.00 in school choice revenue in Fiscal Year 2010 because Net School Spending was not met.
The graph above shows that the number of families who chose to send their children to Orange increased rapidly from 2004 to 2010. Last year the number fell slightly, and of course it is possible that it will fall yet again this year.
 |
| School Choice Trends in Enrollment Orange Elementary Schools Orange, MA |
The Commonwealth of Massachusetts has a formula by which towns and school districts are financially punished for not meeting Net School Spending Requirements. The Net School Spending Requirement is the absolute minimum amount allowed to go to public education in each town. Unfortunately for the Town of Orange and the Orange Elementary Schools the absolute minimum was not met in Fiscal Year 2010.
It is safe to say that the state allocates more than $5,000.00 per school choice student. In some cases the state may allocate more for individual students based upon their need for special education services. It has been estimated that the Town of Orange missed out on around $50,000.00 in school choice revenue in Fiscal Year 2010 because Net School Spending was not met.
The graph above shows that the number of families who chose to send their children to Orange increased rapidly from 2004 to 2010. Last year the number fell slightly, and of course it is possible that it will fall yet again this year.
Tuesday, August 23, 2011
School Choice - Part I of IV
 |
| School Choice Trends in Enrollment Petersham Center Elementary School Petersham, MA |
The next series of blog posts will focus on school choice in each district, one at a time. Today, I will start with Petersham Center Elementary School. In Fiscal Year 2011 Petersham Elementary received an average of $6,563.11 per student of choice from surrounding districts. While this amount does not reflect the true cost of education for a single student – it comes as much needed support for Petersham Center Elementary.
As you can see from the graph at the top of this post, the Massachusetts Department of Elementary and Secondary Education showed in 2011 that 56 students in the Petersham Center School were students who actually came to Petersham from surrounding towns. So, with this Petersham Center Elementary School received a little more than $370,000.00 in Fiscal Year 2011 for these 56 students.
Without School Choice each classroom at Petersham Center Elementary School would have an average of around 8 students per class. This low number of students in each class would drive the per pupil cost of education in this small school to an unsustainable amount. If Petersham did not accept School Choice Students, classrooms would have to be combined so that students from multiple grades would bein a single classroom. Commonly referred to as The Little House on the Prairie model, this would not be to the benefit of the students who attend this school.
Having students choice in to your school is a badge of honor. It means that parents from towns other than yours view your school as a better place for their children to learn. School Committees, administrators, and teachers alike take pride in the fact that their school is a desirable place for those outside of their own communities.
The next blog post will focus in on School Choice at Orange Elementary and the third will focus on Mahar. The final blog post will focus on School Choice in a new fully regionalized Pre-K – 12 district for the Mahar, Orange, and Petersham School Districts.
Thursday, August 18, 2011
What is an Excess and Deficiency Account?
I received a question from one of my new colleagues from the elementary system that I felt was important for everyone to understand. I have spoken about the Excess and Deficiency (E & D) account many times in our public meetings in which regionalization has been the topic of discussion. At our Regional Planning Meeting on August 11, 2011 I said, “Should Orange, Mahar, and Petersham regionalize the elementary schools and towns would be beneficiaries of an Excess and Deficiency Account.” So the question:
What is the E & D account and how is having it beneficial for our schools and our towns?
Every regional school district must maintain an Excess and Deficiency (E & D) Account. In cities or towns this fund is referred to as Free Cash and in business it is similar to retained earnings. At the end of every fiscal year, any surplus or deficit in the district’s general fund is placed in or taken from the E & D fund.
Every year and in every regional school district this fund is certified by the Massachusetts Department of Revenue. Failure to have this account certified may result in the state withholding all or part of the region’s state aid.
The regional school committee may use all or part of the certified balance in E & D as a revenue source for its next proposed budget. This fund may also be used at the discretion of the school committee for extraordinary or unanticipated expenditures. Up to 5% of the current year’s budget can be attributed to the E & D account.
So what does all of this mean????
For starters the assessments to the towns of New Salem, Orange, Petersham, and Wendell were reduced by $489,945.00 in the 2011 – 2012 school year. This amount came directly from the Ralph C. Mahar E & D fund. If we were to regionalize, we would be able to store close to $1,000,000.00 in a larger, combined E & D account. As has been the case for many years at Mahar, these funds would be used to reduce the assessments for Orange and Petersham Elementary as well.
Second and even more important, this fund can be used in a time of crisis. The over expenditure of funds at Orange Elementary in fiscal year 2011 is a perfect example of this. If Orange were a regional school the deficit at the end of fiscal year 2011 would not have been an issue for the Town of Orange. The best way to handle this deficit would have been to pull funds from the Excess and Deficiency Account.
What is the E & D account and how is having it beneficial for our schools and our towns?
Every regional school district must maintain an Excess and Deficiency (E & D) Account. In cities or towns this fund is referred to as Free Cash and in business it is similar to retained earnings. At the end of every fiscal year, any surplus or deficit in the district’s general fund is placed in or taken from the E & D fund.
Every year and in every regional school district this fund is certified by the Massachusetts Department of Revenue. Failure to have this account certified may result in the state withholding all or part of the region’s state aid.
The regional school committee may use all or part of the certified balance in E & D as a revenue source for its next proposed budget. This fund may also be used at the discretion of the school committee for extraordinary or unanticipated expenditures. Up to 5% of the current year’s budget can be attributed to the E & D account.
So what does all of this mean????
For starters the assessments to the towns of New Salem, Orange, Petersham, and Wendell were reduced by $489,945.00 in the 2011 – 2012 school year. This amount came directly from the Ralph C. Mahar E & D fund. If we were to regionalize, we would be able to store close to $1,000,000.00 in a larger, combined E & D account. As has been the case for many years at Mahar, these funds would be used to reduce the assessments for Orange and Petersham Elementary as well.
Second and even more important, this fund can be used in a time of crisis. The over expenditure of funds at Orange Elementary in fiscal year 2011 is a perfect example of this. If Orange were a regional school the deficit at the end of fiscal year 2011 would not have been an issue for the Town of Orange. The best way to handle this deficit would have been to pull funds from the Excess and Deficiency Account.
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