Southington/State correspondence on budget

SOUTHINGTON PUBLIC SCHOOLS

March 1, 2018

TIMOTHY F . CONNEL.LAN SUPERINTENDENT OF SCHOOLS

STEVEN G. MADANCY A SSISTANT SUPERINTENDENT FOR CURRICULUM & INSTRUCTION

Ms. Kathy Demsey Chief Finance Officer Conn. State Dept. of Education P. 0. Box 2219 Hartford, CT 06145-2219 RE:

BOARD OF EDUCATION B RIA N 5. GORAL.SKI BOARD CHAIRPERSON TERRI C . CARMODY VICE CHAIRPERSON COLLEN W. CLARK SECRETARY J OSEPH M . B ACZEWSKI ROBERT 5 . BROWN USA CAMMUSO DAVID J . DERYN OSKI

Minimum Budget Requirements (MBR)

Dear Ms. Demsey, This letter is in response to your letter dated February 22, 2018 regarding Southington being out of compliance with MBR by $1 ,626,398.

The Southington Board of Education received an additional appropriation of $850,000 since the date of your letter and our ED012 has been updated to reflect a 2017-2018 budget of $90,740,228. We anticipate $1 ,700,000 in additional appropriation paid in two (2) installments of $850,000 to be approved by the Southington Board of Finance and Town Council. This action will bring our operating budget to $92,440,228.

ZAYA G . 0SHANA P ATRICIA A. QUEEN

Our business office will continue to contact Kevin Chambers, State Education Consultant, to update our data as the appropriations are approved.

::r rely, J. ~ 200

NORTH M AIN STR EET

SOUTHINGTON ,

Tim~ onnellan Superintendent of Schools Southington Public Schools

CT

06489 WWW.SOUTHINGTONSCHOOLS.ORG OFFIC E TEL E PHO NE

(860) 628-3202

FAX (860) 628-3205

TFC/lb #22.1718.MBRltr.docx

February 22, 2018

Timothy Connel Ian Superintendent Southington Public Schools 200 North Main Street Southington, CT 06489 Dear Mr. Connellan: Districts were recently asked to provide 2016-17 and 2017-18 budgeted appropriation information in order for the Department of Education to determine whether they are meeting the 2017-18 Minimum Budget Requirement (MBR). Based on the information submitted, Southington is current ly in noncompliance by $1,626,398. Attached is t he calcu lation used to determine Southington's MBR. On February 2, 2018, I sent the attached letter outlining various savings that districts may avail themselves and remain with in the MBR. As noted, legislation allows for a deduction for any district that realizes new and documentable savings through increased district efficiencies approved by the Commissioner of Education or through regional collaboration or cooperative arrangements pursuant to Section 10-1S8a of the Connecticut General Statutes. Any district that realizes such savings may reduce such district's budgeted appropriation for education in an amount equal to half of the amount of savings experienced as a result of such district efficiencies, regional collaboration or cooperative arrangement, provided such reduction shall not exceed one-half of one percent of the district's budgeted appropriation for education for the fiscal year ending June 30, 2017.

If your district has experienced savings and you wish to apply for this deduction, please contact me for further instructions.

If you are not applying for the savings deduction, please indicate by March 2, 2018, if you anticipate the town providing the board of education with the additional f unds during this fiscal year. If additional funds are appropriated, please notify Kevin Chambers at 860-713-6455 immediately so your data can be updated accordingly.

Please note that pursuant to Section 10-262i(e) of the Connecticut General Statutes, failure to meet t he 2017-18 MBR results in a forfeiture of Education Cost Sharing (ECS) grant funds in the amount equal to two times the shortfall. Such forfeiture would be deducted from the district's 2019-20 ECS grant. Based on the current shortfall of $1,626,398, the reduction to the ECS grant would equal $3,252,796. The State Board of Education may waive such forfeit ure if the town agrees to appropriate to the board of education in 2019-20 an amount in excess of the MBR that is at least equal to the penalty. In addition, the State Board of Education may waive the forfeiture for other good cause.

Please do not hesitate to contact me at 860-713-6464 if you have any questions.

Sincerely,

Yc&u.

~

Kathy a'ey

~

Chief Financial Officll KD:kk cc: Dianna R. Wentzell, Commissioner of Education Peter Haberlandt, Director, Legal and Governmental Affairs Mark Sciota, Town Manager, Town of Southington Sherri DiNello, Business/Finance Director, Southington Public Schools Kevin Chambers, Education Consultant, Bureau of Fiscal Services Attachments

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Connecticut State Department of Education 2017-18 Minimum Budget Requirement (MBR) Calculation For K-12 Districts Town:

Southington

Item# 1.

2016-17 Budgeted Appropriation (ED012):

2.

10/2016 Free and Reduced Percentage:

14.21%

3.

Maximum Efficiency Cap (Item 1 x .5%):

463,604

4.

Maximum Cap Percentage: (If Item 2 is at least 20% then 1.5%, else 3%):

5.

6.

*

$92,720,790

3.00%

Maximum Resident Student Deduction (Item 1 x Item 4): . Preliminary Resident Student Deduction*

$2,781,624 $190,761

7.

Resident Student Deduction (Lesser of Item 5 or Item 6):

8.

Designated High School Deduction**

9.

2017-18 Budgeted Appropriation (ED012):

$89,890,228

10

2017-18 Non-Alliance ECS Increase:

-$1,013,403

11.

Savings Realized Through Efficiencies:

$0

12.

Preliminary Efficiency Deduction (Item 11 x .50):

$0

13.

Efficiency Deduction (Lesser of Item 3 or Item 12):

$0

14.

2017-18 MBR (Item 1 - Item 7 - Item 8 + Item 10 - Item 13):

$91,516,626

15.

2017-18 MBR Overage/Shortage (Item 9 - Item 14):

-$1,626,398

A. Decrease of Resident Stud ents B. 2015-16 Net Current Expenditures C. 10/2015 Resident Students Preliminary Resident Student Deduction ((Item B / Item C) x .50 x Item A)

$190,761 $0

27.62 $91,816,447 6,646.99 $190,761