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03/09/2021 02:18 PMThe Regional 4 School District’s proposed budget for the 2021–’22 (’22) school year was moved March 4 by the Region 4 Board of Education (BOE) to a public hearing on Monday, April 5.
The proposed $21,972,472 budget is a 3.82 percent, or $808,731 increase over current year. It includes $1,500,250 of debt service. The proposed budget was developed through three budgeting workshops held on Jan. 27, Feb. 9, and March 2.
The budget funds all contractual obligations for the district, including those for salaries and employee benefits. These two categories make up the bulk of the Region 4 budget, with salaries at approximately 50 percent of the budget and employee benefits at approximately 19 percent.
In the proposed budget, salaries will increase by 2.11 percent, or $226,901 from current year. One of the more significant changes proposed in this category would affect John Winthrop Middle School, which would see the position of assistant principal eliminated and replaced with a dean of students position.
The proposed full-time dean of students position would result in cost savings realized over time, according to Superintendent of Schools Brian White.
The category of employee benefits will increase by 0.45 percent, or $18,363 from current year in the proposed budget. This low increase is due to flat funding for health insurance, as recommended by Joe Spurgeon, the district’s medical insurance representative from Lindberg & Ripple. It also includes a $91,429 appropriation to the Health Insurance Reserve, which is no change from current year.
Spurgeon provided information on the district’s current and projected medical insurance claims at the Jan. 27 workshop. He reported claims for 2020-’21 being lower than expected due to deferred medical procedures as a result of COVID-19 and participants needing to meet a deductible in the first half of the year.
“To be at 26 percent under expected in the first half of the year would tell me that we’re going to be running under expected for the year, so I expect this year will be another favorable year,” said Spurgeon on Jan. 27. “And your budget will help build any reserve contributions beyond even what you budgeted for.”
Spurgeon said that he expects the estimated claim numbers from the district’s insurance provider, Anthem, for 2021—’22, “to be around flat and that would even account for any increase in fees like stop loss, having a conservative approach right now, so, we’re comfortable with the flat increase.”
In addition to other various changes under the categories of salaries and employee benefits, the proposed budget funds a 10 percent increase in purchased services. This category covers the costs associated with special education, professional development, and legal and audit fees, among other areas.
A new proposed initiative for a $51,000 building study is included under this category. A 10-year building study, the cost for which is also built into the other school boards’ budgets, will help assess the facility needs of the entire school system.
On Jan. 27, White said that along with the 10-year demographic study that was recently completed, the building study “would be equally beneficial just to improve long range financial planning relative to facilities and maintenance needs and capital.”
Another category that proposes an increase is other services, which funds transportation, communications and out-of-district tuition. This category proposes an increase of $376,890, or 16.58 percent increase from current year.
The last category to call for an increase is supplies and materials. The increase for this category was 5.20 percent or $33,718 over current year.
The categories of property services, equipment and other objects saw reductions.
Capital Expenses
The proposed budget also accounts for funding $220,000 in capital items and a $35,000 contribution to the capital reserve fund.
White reported throughout the budgeting workshops that the district will no longer have a deficit in its capital reserve fund at the end of the year due, in part, to a contribution of surplus funds to the account last June.
The proposed funding for capital items would cover the costs of a $120,000 chiller system replacement at JWMS; a $50,000 upgrade for Valley Regional High School (VRHS) heating, ventilation, and air conditioning system; and a $50,000 repair to a chimney at VRHS.
These capital items have been categorized as either meeting the end of their serviceable life or posing a risk to health and safety.
Timeline
After the public hearing on April 5, the Region 4 BOE will vote whether to recommend moving the budget to an annual meeting held on Monday, May 3 ahead of a Tuesday, May 4 budget referenda in each town.
Once given final approval, the costs of the Region 4 budget will be shared among the towns of Chester, Deep River, and Essex. As currently proposed, Chester is responsible for $5,135,676 of the budget, a 0.54 percent increase from current year; Deep River is responsible for $7,576,394, a 1.11 percent increase from current year; and Essex is responsible for $8,974,721, a 7.96 percent increase from current year.
A copy of the proposed budget is available on the district’s website www.reg4.k12.ct.us under Budget Information.