Triton Regional hosts State Auditor Bump on regional school finance

A discussion based off this report from State Auditor Bump's office on recommendations for regional school district management
The agenda is a presentation on the report, followed by responses from the legislative delegation (Senators Tarr and O'Connor Ives, Representatives Hill, Kelcourse, and Mirra)



Superintendent Forget (who served as a school business official before being superintendent)
cites increasing percentage of "total operating costs" being covered by local funds for Triton Regional (from 59.8% in 2002 to 73.78% in 2017)
(FY16, Triton funded at 16.3% over foundation)
"The solution is not merely about increasing funding for Chapter 70...call of foundation budget review commission is about real, it does nothing" to fix fundamental flaw in foundation budget
"lack of understanding of problem" evident in Governor's budget

Auditor Bump
Division of Local Mandates
may not fit definition of unfunded mandate, by cry out for this sort of work
"you can see how much the Legislature likes to hear from us with these reports"
under took (regional) report for a reason that was very personal to me
was a resident of Great Barrington
couldn't pick up the paper without reading about budget issues for schools
school closures, one room schoolhouses
busing over ever-increasing miles of country road
have a declining population in the Berkshires; fewer and fewer families to bear the burden
"we've never funded regional school transportation to the extent required by the law"
the long-term structuring of regional schools and regional school agreements
"you all have an interest in understanding the problem and contributing to the solution"

Ben Tafoya, Division of Local Mandates
spent quite a bit of time developing this material
took a look at the literature; DESE provided a good report in 2009 on challenges of regional school districts; Legislature produced one in 2011
went into the field six years later, engaged with Legislature, advocacy organizations, superintendents
58 academic regional school districts; didn't specifically look at vocational technical regionals, but some issues are the same
one crisis is demographics and enrollment
decline in enrollment of about 10% over ten year period (enrollment of state only decreased a bit)
biggest decline by far was in regional districts; some by as much as 25%
looked at Berkshire Hills Regional; 1300 enrollment
Wachusett Regional; 7000 students (largest in MA)
Groton-Dunstable...were specifically looked at
some is declining population (see, for example, western Mass) and some by other choices by parents, some of which is triggered by lack of resources in those districts
economies of scale: real significant difference in expenditure per pupil
average regional district has 1800 students; average municipal has twice that
Wachusett $12,000; Berkshire Hills $18-19-20,000 per pupil due to economies of scale
Commonwealth would benefit from further regionalization of services
pushback is the Massachusetts way is local sovereignty, thus ask is to give up some of that for better educational services
aren't currently significant incentives to give up local sovereignty
carrot for regionalization was transportation reimbursement; requirements are more stringent and regions are often larger
regional transportation reimbursement was for many the number one issue in discussions over the report

Bump asks Supt Forget about transportation reimbursment
have cut back on runs; now running 24 runs
an increase to 100% would be $320,000
Bump: that clearly is a challenge unique to regional school districts "due to the large districts, due to the door to door"
(I...would dispute that...)
Districts "really over a barrel" on bidding out transportation as there isn't competition
by statute, districts are precluded from working with their regional transportation authority; recommendation is to get rid of that constraint
Forget: reimbursement is only in part as it's regular day buses; special education buses are not included in reimbursement

back to Tafoya
"regional school districts have some very significant challenges with transportation"
grants for planning
working on conflict: among municipalities, between district and municipalities
things to work on to reduce those conflicts
some districts suffer because they have difficulties getting budgets passed; Wachusett (which always goes 3 to 2 on voting their budget) is cited
combinations for efficiencies; need to work on such systems that might hold up progress
in other words, greater regionalization of districts that can't get budgets passed isn't progress
regional districts should look at agreement every five years

greatest costs are those cited in the Foundation Budget Review Commission: special ed and health insurance
when formula is updated, will require greater system of investment
documented areas in which 100% of reimbursement isn't reached: McKinney-Vento homeless transportation
minimum per pupil increases due to drops in enrollment

ways that money flows in and out of districts due to choices made by parents
school choice is one: capped at $5000 per pupil
per pupil expenditure exceeds $5000 everywhere in the Commonwealth
per pupil amount to charter schools and vocational schools is much higher

Auditor: willing to have conversations that go to how it is that communities will share the costs of the district assessments
relative wealth within the district of Berkshire Hills very different; what towns could afford was very different
calls up the question whether there ought not be other models to meet the local share
there are other models of districts
Berkshire County talking about a countywide district: currently 15 school districts, 31 towns, 14,000 students
"to ensure that students in regional school districts aren't disadvantaged by being in regional school districts"

O'Connor Ives: relish any opportunity to have the funding highlighted
"so many communities are impacted with the regional situation"
since 1945 in regional school transportation
"we're all too familiar with how these issues are all the same"
costs of special education, transportation are only going up
"why would anyone regionalize now? I don't see any incentives out there."
historically it has gone down; the amendments are being filed
advocate for McKinney-Vento: district shouldn't have on top of the obligations not enough funds
"if we simply followed through on the promise, the rest becomes less of a problem"
need to organize: "I personally think regional transportation is easy to understand"


Kelcourse: would like to talk about briefly
"has been an unfair formula for many, many years...pits urbans against suburbans, those with more resources against those with fewer
urban districts argue need those resources for homelessness, for opioid resources, for infrastructure, for gang violence
IDEA not fully funded
circuit breaker number didn't include increase private schools; supplemental budget may include
"the findings that came out of that report were disgusting, they didn't say anything"
between $500 and $750M needed for special education and health insurance
"that's the frustration we have..."
if foundation budget were implemented, drop in funding due to drop in enrollment
hold harmless and increased per pupil
increase in funding of $100M would only result in increase of $40,000; "it's the formula"
gaming funding

Hill: special education as a driver of education costs
drop in population
constantly grappling with these issues on the education committee
it's a revenue question
"we need to be addressing those costs drivers"
"some of our colleagues look at us and think that suburban districts" don't need the assistance
"Weston shouldn't have opportunities that are available...that aren't to students in the Triton Regional District"
"those nickels and dimes do add up to dollars"
reach out to us as you find things that are needed
"as important to me as it is to you"

Mirra: regulations over time that detract from teaching
in an attempt to try to save costs
Governor from municipal government; understand how it works

Tarr: relationships with school committees and superintendents
unfunded mandates "siphon parasitically" money from towns and school districts (thanks Auditor for her report on it)
Bump mentions that Tarr is the most prolific requester of reports
comprehensive report
regional school agreements seen as a liability rather than an asset
was supposed to be a periodic review of the foundation budget; it did not happen
realistic cost not in the foundation budget; didn't tell us anything we didn't already know
"this report will serve to catalyze that same kind of agreement"
periodical review of regional agreement
need to fully fund special education and the circuit breaker; that cuts across every kind of school
need to look at how we provide special education
Tarr would like to see an audit and a review to see if we're delivering it in the most cost effective and effective way
"that would impact everybody"
great promise of regional schools was that it would create efficiencies
some regulations that are holding back regional schools from fulfilling their potential
"Here's the reality of Chapter 70: the formula's unfair, it shortchanges similar communities, and you're never going to change the formula unless you can do it without taking money away from anybody"
cites gaming revenue again
regional transportation, FBRC...this right now is "not an academic exercise"
"we've got to come with a list that is a common denominator"
before we pay for anything new "we have to pay for the basics we've committed to"
"when it comes to these issues, there is no party; there are only constituents and a common obligation to serve them"
new paradyme: don't let things go twenty years before dealing with them

O'Connor Ives: couldn't agree with Senator Tarr more (if the auditor takes requests)
early intervention is considered a boutique item, and it's really how we're able to help students and curb greater costs later on

selectman from Rowley: ability of cities and towns to pay their share of school costs
our ability to fund schools is severely constrained
allowed new growth and 2 1/2 percent
taking operating expenses out of free cash "the well runs dry very quickly"
originally "there was a pothole fund created"
"this circuit breaker thing is a joke...it's only a way to say 'oh, yeah, we're putting money into special education'"
don't know how we're getting the increases we're seeing in special education
"We need help...we love our schools, we want to fund you...we now have our backs against the wall"

Chairman of selectman in Rowley: not that we haven't asked a lot of our taxpayers in Rowley
taxpayers supported override to renovate school; heard from seniors "happy to support renovation because they knew it needed a lot of work...but happy to vote down regional budget because they can't afford it"

Selectboard member from Newbury: graph "worries me immensely"
"we need to find another way around it; it's not sustainable"

selectboard member from Newbury:
needs to balance education, public safety, other needs
"our fire engines, our buildings are dilapidated"
"everything is balance"

selectman from Salisbury:
had said "I'd like to see a Salisbury High School...we went the other way"
"we don't have a lot of ways to raise money in the towns"
"Fortunately for us, we have had some good growth"
going to hold you to those promises tonight

member, Manchester-Essex Regional School Committee
important not to pit communities against each other
"what horse trading can you do to get done what we need done?"
Kelcourse: proud of how delegation works together
money in pothole account last year
Rep. Peisch has been one of our biggest advocates, has said we need to do a better job in funding education
"lack of funds have kept us from doing what we want to do"
"can we do it all in one year? No." but can phase in over time
O'Connor Ives: see regional dispute
regions that benefit from status quo fight to defend it
"I take issue that it's just so complicated as a baseline...if only experts do" that's a fundamental problem (speaking of the foundation budget)
(the argument there was basically "because it is hard, it is broken")
would focus energy on money coming down the pike "because we need more revenue over all"
Suggests corporate tax credits "money left on the table"

what can school committees and others do?
Tarr says "continue to communicate"
Auditor: assume school committees are members of MASC; selectboards are members of MMA
associations support regional transportation and special ed
"put that not just on the wishlist but on the top of the wishlist"
"the reality is that the population is in metropolitan Boston and that's where the power is"
"and use your outside voices; don't be afraid!"
Chair of committee cites involvement in state associations
"you will certainly hear from Triton"
member of the Triton committee: I think that grants are a wonderful thing, that was a great suggestion, but that isn't what we can look for as a solution
I haven't heard anything about charter school; "we have a problem with the way that charter schools are funded"
"makes our struggle even harder"

funding of special education: "in many respects, this is a health care issue, not an education issue...need to shift those costs away from the cities and towns to the health care system"
"not getting value for the money" in education
towns in impossible situation with Prop 2 1/2
"leadership at the top...there's a lack of leadership at the top...people are spinning their wheels"
Bump: piloting ways of funding; PA has assessments to pay for regional services
it's funded separately, it's assessed separately
Tafoya: in the rest of the country, they deal with regionalization differently
countywide, regional schools that are a separate municipal entity including taxation and budget approval
municipal officials and districts officials are not in competition for resources as they each have their own taxation authority
were getting higher Medicaid reimbursement previously

Supt Forget: issue of timing
another unique challenge for a region: budget has to be certified towns early
"when we can't count on the right numbers in the Governor's budget, we have to guess and guess conservatively"
Tarr: notion of early local aid resolution was something on which we can build
more recently have been seen as a maximum as well
have tried to pursue rules changes to establish local aid by a certain date
O'Connor Ives: as long as it doesn't preclude amendment, there'd be no problem

and wrapping up