Many of the state subsidies received by the district are determined, at least in part, by a formula called the Market Value/Personal Income Aid Ratio (MV/PI AR). The calculation is based on the market value of property in the district as well as personal income of the residents. This ratio, adjusted annually by the state, is used to allocate funding to school districts throughout the state. The district’s estimated 2009-2010 aid ratio is .369; only 70 of the state’s 500 school districts have a lower aid ratio, meaning that only 70 districts are considered wealthier than QCSD in regards to ability to pay. The state assumes QCSD residents, based on their income level and property value, can afford to pay more at the local level.

At its February 11th meeting, the school board will adopt a Preliminary Budget of $91,064,372. The board will continue to hold monthly public discussions of the 2010-11 Budget throughout the next few months, while the Administration continues to refine the projections and estimates for both revenues and expenses. The Board will vote on final adoption of the 2010-11 Budget at its June 10, 2010 meeting

In January 2010, district administration with the support of the community Finance Budget Committee developed a Preliminary (or tentative) Budget that included a tax increase of approximately 4.02%. Last year, district administrators and community members conducted a very extensive and comprehensive audit of our expenses and staffing, identifying some programs and positions that were restructured or eliminated as a cost savings measure.

For the past two years, expenditures for just about everything including staff, transportation, athletics, extra-curricular activities, and program have been curtailed. In the past two years, the final audited expenditures were less than budgeted reflecting aggressive cost cutting measures, staffing freezes, and more savings than predicted. Last year administration recommended an aggressive final budget that was 4.15% LESS than the previous year’s budget. Employees agreed to over $700,000 in salary concessions.

Various factors affect budgetary decisions. Every budget starts with “status quo”…no new programs or staff. (Last year the district cut staff and scaled back programming significantly, resulting in a “less than” status quo budget.) We then look what “status quo” expenses that will increase for certain. As an example we know costs are rising for electricity, postage, PSERS, contracts, etc. We add in necessary repairs, replacements, equipment, etc. Decisions revolve around the size of the enrollment; number and educational level of staff; the requirements of collective bargaining agreements; building needs (age, efficiency, and space requirements); pupil transportation costs (including transportation for non-public students); health and special educational programs; and changes in mandated program requirements. This year (and last year) there were no new programming requests.

On the revenue side, influencing factors include the number of taxpayers; the assessed value of real estate and other tax-generating capacity; practical and legal limits on the rates of taxation; current and future debt; value of investments; various state subsidies and other funding (including building construction reimbursements); and federal and state grants. The budget must develop and bring together all of these factors to provide a coherent plan. Choices need to be made between educational requirements and available funding. There are always competing interests. Some items are mandated by the state or federal government and must be funded.

That is a bit more difficult to answer. Salaries (about 46% with another 16% in benefits) make up most of the budget, yet many positions exist because they meet federal or state requirements. All salaries, with the exception of a handful, are contractual obligations, the largest being the teachers’ contract which is negotiated between the union and the board. Special education is another required area and it accounts for 4.5% of the budget.