Transcript Slide 1

Newbury – Berkshire
Public Meeting
March 18, 2014
Newbury Auditorium
Berkshire - Newbury Consolidation
Overview
• Talks began in Feb. 2013 at Geauga ESC
• Resulted in discussions between Newbury and
Berkshire
• Both districts have experienced decline in
enrollment of approximately 3% per year over
the past decade
• Census figures show continuing decline in
school age population over next decade
Newbury - Berkshire Consolidation
Overview
• Both districts are currently in operating deficit:
• Newbury will have negative fund balance in fiscal
year 2015*
• Berkshire will have negative fund balance in fiscal
year 2017*
* According to 5-year forecasts
• April 2013: Berkshire & Newbury Boards
retain legal counsel for consolidation advice
• December 2013: Both Boards pass
resolutions asking State Board of Education to
consider consolidation
• January 2014: Superintendents, Treasurers
and both Board Presidents attend meeting in
Columbus with State Board of Education
• February 2014: Public meeting of both
districts and representatives of State Board of
Education Capacity Committee at KSU Geauga
Campus
Facts & Figures
(The Nitty Gritty Details)
Census Data of Combined Berkshire-Newbury School Districts
The school-age
population has
decreased by
13.01% from 2000
to 2010.
Consolidated Historical & Projected Enrollment
Head Count Enrollment
2,500
2,000
1,500
1,000
500
-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Berkshire-Newbury 2,13
2,16
2,15
2,09
2,05
2,01
1,86
1,77
1,73
1,68
1,54
1,52
1,43
1,37
1,29
1,24
1,19
Annual Percentage Change in Expenditure (EFM) Enrollment for District
2.00%
0.00%
-2.00%
-4.00%
1.27%
-0.14%
-1.63%
-3.01%
-2.24%
-2.25%
-4.56%
-1.55%
-3.22%
-5.46%
-6.00%
-8.00%
-10.00%
-7.36%
-8.20%
-4.73%
-3.57%
-5.84%
-4.02%
-3.53%
Where Do We Go From Here?
Timeline:
• End of March 2014: Both School Boards submit
joint resolution containing financial report and
analysis to State Board of Education committee.
This report will be publicly released at that time.
• BOE Committee votes on April 14, 2014
• Full State Board votes in May, 2014
• No later than Aug. 6, 2014: State Board of
Education certifies proposal to County Board of
Elections to be placed on ballot for November
election
Timeline (continued):
• If majority of electors approve consolidation,
the new district will be created prior to July 1,
2015
• The State Board will appoint five electors as
initial members of the Board of Education
• Students will attend new district in Fall of
2015
• New Board of Education members will be
elected in November, 2015
What are the advantages of
consolidation?
• Cost Savings Projected to be >$2MM during first
two years of operation
• One Superintendent
• One Treasurer
• Administrative and Support Staff
• Maintain optimal class size of 22-25 students
• Improve long-term financial stability with
addition of Newbury’s property values and
earned income revenues
• Extracurricular Activities, such as Band, Music,
Drama, Academic Fields of Study
• Athletics: Ability to field competitive JV and
Varsity teams
• MOST IMPORTANT: Not only maintaining
EXCELLENT RATING of both districts, but
enhancing and expanding educational
opportunities for our students
Frequently Asked Questions
• Do we get to vote on consolidation?
YES: If State Board approves, issue will be placed
on Nov 4, 2014 ballot.
• Who will be on the new Board of Education? The
State Board will appoint initial members of the
new Board. New Board members will be elected
in the November 2015 election.
NOTE: We are requesting the State Board appoint
the new Board from members of the current
Boards of Education. The tax structure will be
part of what both Boards jointly recommend.
• Who decides the new district’s tax structure? The newly appointed
Board will determine the tax structure. Residents of all
communities in the new district will pay the same tax rates.
• What will the new tax structure be?
 Analysis shows the the new district would require the equivalent
of about 32.4 mils to operate.
 It is anticipated that Berkshire’s current earned income tax of 1%
would comprise part of the 32.4 mills.
 Since a 1% earned income tax collects approximately 7.67 mills, the
property tax rate under consideration would be about 24.73 mills.
 Various scenarios are still being analyzed and more information will
be forthcoming.
• What income is taxed with an earned income tax? Only earned
income and self-employed income of residents of the school district
is subject to taxation. This would exclude income such as that
earned from interest, dividends, capital gains, pensions, etc.
• When would the new tax rates take effect?
Newbury residents would be subject to the
earned income tax on July 1, 2015. New property
tax rates for all residents would begin on Jan 1,
2015. Payment on these taxes would begin in
January 2016.
• What does deficit spending mean?
Although both schools currently have a surplus
cash balance, expenditures have been outpacing
revenues for both districts. Newbury’s cash
balance will be exhausted prior to Berkshire’s.
This does not mean that either district has been
lax in controlling expenses; it is a reflection of the
cost of educating our students despite extensive
efforts to control spending.
• Why would a Berkshire resident support consolidating with
Newbury, knowing that Berkshire’s taxes will probably
increase?
 Although it is anticipated that Berkshire property owners
will experience an increase of approximately 3.4 mills,
adding Newbury’s property values and earned incomes to
the mix will actually have a mitigating effect on potentially
larger future increases that Berkshire residents would face
without consolidation.
 Although Newbury residents would experience a decrease
in property tax rates, they would be subject to an earned
income tax, which Newbury does not currently have.
 Some Newbury residents would experience a tax reduction
(for example, retirees); some would see little or no change
in their overall tax outlay; some could have a net increase.
Population Statistics from Most Recent U.S. Census
When possible statistics for the individual townships have been supplied. In
some cases the US Census Department has advanced information listed by zip
code. Therefore, Newbury always stands alone, Burton and Troy (44021) are
listed together when * appears under Troy, and Claridon has incomplete
information. All of these statistics are accessible through the U.S. Census
Bureau. The most recent Census Bureau data is presented.
Newbury
Burton
Troy
Claridon
Population
5537
4412
2801
3200
Median Income
$80,391
$68,290
$69,623
$70,455
Median Home Value
$206,600
$184,300
• Why doesn’t Newbury just merge with Berkshire?
What are the advantages of consolidation vs merger?
 Consolidation offers the opportunity to create a totally
new school district, to offer enhanced educational
opportunities, thinking “outside the box,” while
providing better financial stability on a longer-term
basis.
 Merger would require going to the voters asking for a
larger increase in funding in the near future.
 Failure to consolidate also would require going to the
voters and asking for larger increase in funding.
 According to State Law (RC 3311.37), foundation
payments would be guaranteed for 3 years at level of
funding received in year the new district is created.
• Will Newbury close its buildings? Where will
students attend classes?
Plans are being made for students in grades 712 to attend classes in the current Berkshire
High School building. Newbury grades K-6 will
probably remain in Newbury for the next
several years.
• Will there be a new building right away?
We are working with the State Facilities
Commission and State political leaders in
seeking favorable avenues of funding for a
new school structure.
• What will happen to teachers?
Administrators will review class offerings and
optimal class sizes in order to decide the
number of teachers to effectively provide
instruction for our students. It is anticipated
that the consolidated district will require 1215 fewer teachers than the two separate
districts.
RECAP
•
•
•
•
Declining Student Population
Financial Pressures
Aging Facilities
Opportunity to combine two EXCELLENT
districts’ resources and provide long-term
stability and enhanced educational
opportunities
Open to Q&A Session
• This is a forum to exchange polite, respectful
points of view.
• Feel free to ask questions of the Boards of
Education, the Superintendents and
Treasurers of both school districts.
• Please state your name and residency when
offering brief statements or asking questions.
• We’ll do our best to answer your questions, or
research the issues and release our findings.
Thank You For Attending!
Regardless of what you
ultimately decide, we want
you to make an informed
choice based on the facts.