HANOVER – An early forecast for the South Shore Tech fiscal 2025 budget proposal, which increases by 5.62 percent – or $16,139,669 – was presented to the School Committee on Thursday, Dec. 20.
Breaking down the increase, said Superintendent/Director Dr. Thomas J. Hickey explained that the operating budget itself is up 3.88 percent (or $320,000), with capital expenses up 0.92 percent ($180,000) and district election costs for the MSBA project will raise the budget another 0.81 percent. Of the MSBA costs, $125,000 will come from excess and deficiency to avoid impacting local assessments.
“If this wasn’t the year to budget for this election, the overall budget increase would be about 4.8 percent of which about 3.88 percent is to operate the school house,” he said.
The ballot question for the MSBA building project is being planned for late January 2025. If it is passed, borrowing would begin in 2026. A preferred schematic plan – based on a preferred planned enrollment goal – will be presented to the MSBA later this month. The MSBA vote would come in August.
“I want to be able to lift up the hood on this,” he said. “We bring our communities one assessment number … Whatever we need, whether it’s a piece of capital or just running the schoolhouse, it all funnels down into one number.”
Hickey said he also thinks the district will be able to procure new buses using a combination of stabilization and existing funds, putting money toward a second year’s payment. The district had leased a dozen propane buses in 2017 and paid the lease off early, saving money and enabling the district, through equity in the buses to enter a successor lease. Last summer the district had some surplus revenue allowing the purchase of three buses for about $435,000.
“We have said goodbye to the last of the diesel buses that were 10-plus years old,” he said. Even with Marshfield joining the district, Hickey said they should be able to delay the need for more buses by a year.
The specifics of how that assessment breaks down by town will be available at a planned Jan. 25 School Committee meeting after the governor’s budget comes out.
The December budget presentation is traditional for the district.
“We are a little bit earlier than some communities because our regional agreement calls for us to have a certified budget 45 days before our earliest district Town Meeting, Hickey. “Historically, we have at least one town that schedules Town Meeting for early April, so that triggers a budget certification in February, preceded by a budget hearing in January.
SST uses a “zero-based” budget formula.
“While there are fixed costs, every department head and cost-center supervisor is asked to look at their budget with fresh eyes and focus on the year ahead and also on long-range capital planning, but do not simply add a few percent onto last year’s number,” Hickey said. “If we all did that, there would never be enough money for the things that pop up.”
Hickey said the district is monitoring Chapter 70 aid and the effect of changes in state regulations regarding non-resident students, while in-district student enrollment increases with the addition of Marshfield, raises the question of how a drop-off based on non-resident kids graduating in June will impact revue.
The inflation rate being used to calculate state aid is under 2 percent, raising the question does a lower rate mean the member communities may have to absorb more of the costs.
“Does the state aid match the drop in [non-resident] revenue?” he said. If it does not, there is a revenue gap that must be addressed either by adjusting the budget down or pass more costs to the communities.
“We will know what the right answer is as soon as we see the governor’s budget, the estimated state aid – and I’m prepared with a Plan B if there’s a gap,” Hickey said, indicating budget cuts would be the most likely approach.
The budget also aims to move $137,407 in personnel salaries funded by grants into the budget. New personnel eyed in the budget include $75,000 for a physical education/health teacher and $40,000 for a medical assisting teacher budgeted as an aide position. The $40,000 would be paid by a Perkins grant, should it come through.
Among the accomplishments which are always included in the budget presentation: SST now has the highest enrollment in its history with a strong program placement and student application pool, outside funding has been secured via Rethinking Grading, Skills Capital and a recent $2.1 million CTI grant. There has also been progress with the MSBA project and the district has expanded to include Marshfield as of July 1, and programming for student supports have been expanded, Hickey said.
“We are killing it on state grants,” Hickey said. “We’re doing a fantastic job of showing the world that we thrive after hours and we’re serving our day kids and our nighttime adults with great distinction.”
Enrollment trends show Whitman going up by 14 students and Hanson going down by eight from last year’s enrollment. Debt service is based on a town’s average Oct. 1 enrollment in the three years preceding a debt authorization and debt amounts are fixed.
Right now, the debt service number is zero.
Goals ahead include the NEASC accreditation in 2026, expansion of community and culture goals of expanded workforce development, creation of a Student Equity Club and strong student participation in athletics. The MSBA process is the main facilities goal and implementation of a grading initiative is another instructional goal.