Friday, March 1, 2013

The Norwich Finance Committee Position On The School Budget

2013-2014 Proposed Norwich School Budget:

The Norwich Finance Committee voted 4-0 (one member was absent from the meeting and two seats are vacant) to support the proposed Norwich School Budget.
Members of the Committee were initially concerned by the 5.4% increase in the Norwich portion of the budget, but found that two of the items driving the increase (special education spending—which gets partially offset with increased funding from the state--and building maintenance) provided a good explanation for the increase, and that the balance of the increase was reasonable.  In addition, the Committee notes that the projected CLA of 99.7% results in what we believe is a manageable tax rate increase with respect to the overall school budget (Norwich, Dresden, and SAU), but there is a very large caveat here:  If the CLA were to stay the same as the current year, at 93%, the tax rate increase would be almost 8%.  

In light of the projected tax rate increase of only 0.8%, the Committee also looked favorably on proposed additions to the building maintenance reserve and the special education reserve.

Looking forward, the Committee expects that if the bond issue (for roof and univents) is approved, that the project will be bid out and that anticipated cost savings will be realized both from doing the work all at once and in energy cost savings in future years.  One item of concern to be watched in future years is the long-term projection of a declining student enrollment.  To the extent that student enrollment is projected to decline over time, the Committee would like to see variable costs reduced in an effort to keep per pupil costs in line with, or even reduced from, the current proposed budget.
Norwich Finance Committee
Nate Stearns, Chair


Published on the Norwich listserv on March 1, 2013 
http://lists.valley.net/lists/arc/norwich

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