🪙 Finance Committee 2-26-25 AI Recap

Below is a summarized version of the Finance Committee meeting, organized by timestamps and speakers, focusing on key points raised during the discussion in Reading, Massachusetts. This summary condenses the discussion into major themes, speaker contributions, and decisions, avoiding excessive detail while retaining the essence of the conversation. Timestamps correspond to the video linked at the bottom.

Meeting Overview

• Date: February 26, 2025
• Location: Town Hall Reading, Massachusetts (hybrid format)
• Purpose: Review FY26 school budget, discuss future agendas, and handle administrative items.
• Chair: Joseph Carnahan
• Committee Members Present: Mark Zarrow, Joseph McDonagh, Emily Sisson, Marianne McLaughlin-Downing, Geoffrey Coram, Ed Ross, Endri Kume, John Sullivan
• Key Participants: Thomas Milaschewski (School Superintendent), Phil Littlehale (Interim CFO), Thomas Wise (School Committee), Joe Huggins (via phone)
• Start Time: 7:02 PM

Opening Remarks

5:04 – 6:23 | by Joe (Chair)

• Speaker: Joe (Joe Carnahan)
• Content: Calls the meeting to order at 7:02 PM, notes hybrid format, and conducts roll call. Outlines a four-week meeting schedule (potentially five if extending to April 2nd for a public forum). Mentions minimal voting tonight (opening, minutes, adjourning).
• Roll Call: Mark (yes), Joe M (yes), Emily (yep), Endri (yep), Jeffrey (yes), Ed (yes), Andre (yes), John (yes), Joe C (present).
• Key Points: One non-member on Zoom; public comment opportunities planned for each meeting, with the third meeting as the official budget public hearing.

Liaison Reports

6:23 – 17:06 |

• Speakers: Joe (Chair), John, Geoff, Marianne
• Content: Joe invites relevant liaison reports for upcoming budgets:
  • John (7:19-9:27): Reports on RECAL (senior/community center) with a $28M cost, including $4.7M contingency, adding $90-$265/year to property taxes (15-30 year terms). Mentions Killam project and Parker turf nearing end-of-life (18 years old, no cost estimate yet). Notes select board’s decision to retain downtown kiosks but not use them on Lower/Upper Haven, with potential sale to Melrose.
  • Geoff (9:41-15:27): Updates on Killam School project; schematic design approved with a $129M total budget, $40M MSBA reimbursement (plus potential IRA incentives of $1-2M). Discusses federal policy risks (e.g., IRA changes), but notes conservative budgeting assumes full voter approval of $129M.
  • Marianne (15:33-16:12): Reports 6% residential and 7% commercial/industrial rate increases for RMLD, with stable U.S.-sourced energy unaffected by Canadian tariffs.
  • Joe C (16:18-17:01): Mentions Community Preservation Act study targeting a November 2026 vote, with ongoing reports (e.g., affordable housing).
• Key Outcomes: No immediate votes; updates frame budget discussions.

FY26 School Budget Presentation

17:06 – 34:16 |

• Speakers: Tom (Superintendent), Phil Littlehale (Interim CFO), Joe (Chair), Committee Members (Marianne, others unnamed)
• Content: Tom and Phil present the FY26 school budget:
  • Tom (17:06-28:42):
    • Highlights a $58,491,591 general fund request (3.5% increase), a level-service budget with two additions: universal tuition-free kindergarten (from $1,450 to $0) and a 1.0 FTE kindergarten teacher (contingent on enrollment reaching 340, currently 287).
    • Provides context: 35 FTE added over three years (FY23-25) via grants and operating budget, improving services (e.g., counselors, MLL staff, math coaches).
    • Notes priorities not funded (e.g., future staffing needs) in a wish list.
  • Phil (34:16-51:22):
    • Discusses federal grants: $1.3M total (e.g., $1.17M IDEA for special ed, $90K Title I), trending downward. National School Lunch Program adds $250K of $2M revenue.
    • Details budget structure: 8 cost centers (new FTE breakdown), 10 FTE increase reflects grant-to-general fund shifts (9 FTE) plus 1.0 kindergarten teacher. Special ed out-of-district tuition up 3.69%-14% recently.
    • Explains 2.4% salary increase (below 3.5% due to turnover savings and $2.4M offsets vs. $1.6-1.7M prior).
• Discussion:
  • Marianne (41:26-43:27): Questions Title I decline despite rising low-income students (Phil: funding pool shrunk) and MLL growth amid border policy changes (Tom: budgeting based on current trends).
  • Unnamed (30:54-32:56): Queries kindergarten enrollment and facilities (Tom: Barrows near capacity, manageable elsewhere).
• Key Outcomes: No vote; budget aligns with 3.5% guidance, contingent kindergarten FTE noted.

Budget Q&A and Capital Plan Discussion

51:22 – 1:24:56 |

• Speakers: Tom, Phil, Joe (Chair), Joe Huggins (via phone), Committee Members (Joe, others)
• Content:
  • Special Ed Costs (1:11:46-1:15:57): Joe asks about turnover savings (Phil: offsets $175K gap between 3.5%-4% increases; Tom: invests in reserves, pre-pays tuition).
  • Capital Plan (1:17:24-1:24:56):
    • Vehicle barrier ($475K, FY29) confirmed as safety upgrade (1:17:30-1:18:03).
    • Parker Auditorium lighting failure prompts urgent replacement (cost TBD, likely >$200K). Joe Huggins (1:19:26-1:24:42) details interim fixes and plans for LED upgrade by next school year, pending accurate cost estimate.
  • Transportation (1:25:08-1:28:03): Joe explores in-house options (Phil: impractical due to scale; consolidation limits competition).
• Key Outcomes: Lighting replacement prioritized; no immediate capital shifts decided.

Special Ed Program and Future Planning

1:28:03 – 1:39:41 | Special Ed Program and Future Planning

• Speakers: Tom, Phil, Joe (Chair)
• Content: Discussion on in-district special ed (LEAD program) to reduce out-of-district costs:
  • Top 5% rating from MGH boosts marketing (video, networking) to retain and attract students (1:28:03-1:31:27).
  • Early kindergarten intervention aims to lower future placements (1:28:48-1:29:16).
• Key Outcomes: LEAD program expansion seen as cost-saving strategy; no vote required.

Future Agendas

1:32:30 – 1:57:05 |

• Speakers: Joe (Chair), Geoff, Committee Members (Joe, others)
• Content: Plans four meetings:
  • March 5: Killam and RECAL presentations (no vote).
  • March 12: Town budget (Part 1), public hearing, health insurance/free cash discussion.
  • March 19: Town budget (Part 2), voting on budget and warrant articles.
  • April 2: Public forum on Killam/RECAL (not committee-led).
  • Additional topics: health insurance hikes (7% planned, 13% actual), free cash usage ($5.8M guidance, $6M request pending), policy on reserves (stabilization vs. free cash).
• Key Outcomes: March 12 set for free cash and budget shortfall talks; presentation consistency requested for town budget.

Administrative Items

1:57:12 – 1:58:29 |

• Speaker: Joe (Chair)
• Content:
  • Motion to approve October 30, 2024, minutes (seconded, approved by roll call: all yes).
  • Motion to adjourn (seconded, approved by roll call: all yes).
• Key Outcome: Meeting adjourned at ~9:00 PM.

Key Outcomes

1. FY26 School Budget: $58,491,591 proposed (3.5% increase), level-service with tuition-free kindergarten and contingent 1.0 FTE addition. No vote yet.
2. Capital Needs: Parker lighting replacement prioritized (cost TBD); no immediate shifts in $475K vehicle barrier plan.
3. Special Ed Strategy: LEAD program expansion to reduce out-of-district costs, supported by strong external review.
4. Future Agendas: March 12 to address health insurance shortfall and free cash usage; April 2 forum to educate public on projects.
5. Administrative: Minutes approved; meeting adjourned.