Note: These proposed minutes should be considered preliminary until they are approved by the Finance Committee at a future meeting.
Windham Southeast School District Finance Committee Meeting –
Tuesday May 14, 2024
5:00pmat James Cusick Conference Room, BUHS and remotely via Zoom
WSESD Finance Committee Members present:
Sean Murphy (SM), Kimberly Price (KP), Eva Nolan, (EN), Ruby McAdoo (RM)
WSESD Finance Committee Members Absent:
WSESU/SD Staff Present:
Business Administrator Frank Rucker
Others present:
Please note: This attendance record may be incomplete.
Minutes / Agenda
1. Approval of Minutes
SM called the meeting to order 5:04 pm
KP MOVED TO APPROVE THE MINUTES FROM THE MINUTES FROM 4/9/24. VOTE WAS CALLED, PASSED UNANIMOUSLY.
The request to discuss the meeting time for this committee. SM indicated that this will occur after the FY25 Legislative update.
2. FY25 Legislative update related to school funding statistics
Frank reported that the General Assembly approved the Yield Bill (H.887) on 5/14/24.
Frank reviewed the memorandum from the VT Agency of Education that summarized funding statistics in the Bill The result was favorable (Yield @ $9,893), being close to what was presented at the Annual Meeting ($9,899). This will result in our projected CLA adjusted tax rate to be very accurate unless the Governor vetoes the bill. The Income Yield of $10,110 is a bit lower than the estimate from 3/19/24 (we used 10,300). This adjusts the various calculations that go with Income Sensitivity. The Non-Homestead Rate (business properties and non-residents second homes, etc.) is set at $1.39 prior to the CLA adjustment for each town.
The amount of non-resident property tax raised and sent to the Education Fund is quite similar to the Homestead amount. As part of cost containment initiatives H.887 reinstates the excess spending threshold for FY2026. The Excess Spending Tax applies to budgets that exceed 118% of the average of spending in the state. This provision of law had been suspended through FY2029 during COVID, but the suspension has been rescinded.
The average homestead property tax rate increase over the period of FY22 through FY25 will average less than 4% if the Yield remains at $9,893. The legislature artificially lowered the FY24 tax rate by using one time subsidies and as a result the FY25 tax rate compared to FY24 will on average be closer to a 10% increase. Despite this, the average CLA adjusted property tax rate will be below the inflation rate over the FY22-25 period of time.
Act 127 implemented a new student weighting formula in FY25 which includes English Language Learners (ELL), and low socioeconomic status (SES) students. State Funding is adjusted to reflect students need for learning interventions, based on these higher weighted variables to help offset cost. WSESD receives higher funding because of the student weighting formula.
Part of H.887 creates a commission to study the challenging issues facing public education systems in Vermont. A report to the legislature will include consideration of school size, school governance, transportation services, authority of electorate vs. legislature, among other topics.
If the Governor vetoes the funding Bill H.887, a Conference Committee will meet with the Governor to try to come to consensus. The legislature may also attempt to override the veto. This is a concern as the district is required to report the FY25 approved budgets by 6/1/24 to the tax department using the “Yield” figure of $9,893. Once reported, school homestead property tax rates will be set using the figure that results from the “Conference Committee”. If the yield increases, the tax rate would be lowered, and vice versa.
The WSESU Administration has worked with the Board to present a fiscally responsible budget. Given passage of H.887 the District will proceed with implementing a FY25 spending freeze of $800k and use of $2.2m in reserves as discussed at the Annual Budget meeting on 3/19/2024. This is expected to achieve an average CLA adjusted homestead property tax rate of 4%. Aside from Guilford, the other towns have not done Town wide property tax reappraisals for a while. When they do, it is anticipated that the impact will be significant.
3. Approval of Warrants
4. Other Business
Meeting times discussion. Mondays at 11 am or 1 pm work for everyone who participated in the Doodle. SM feels that in person is helpful and it is important to conduct the meeting as close to the full board meeting a possible for a number of reasons. RM requested trying one of the times with a zoom option for a trial period.
The committee agreed to meet on Monday June 3rd at 1 pm, at Central Office and offering zoom as an option.
EN MOTIONED TO ADJOURN AT 5:56 PM.
VOTE WAS CALLED. PASSED UNANIOUSLY.
