Each Year as Town Meeting Day approaches, the School Board puts considerable effort into explaining the proposed school district budget to Stowe voters.

Toward that end, there will be several more of these columns from the school board in the paper before March 4th. Members of the School Board will do brief budget presentations at upcoming PTO, Stowe Area, and Rotary meetings. There will also be a public information meeting at Stowe High School, in the auditorium, on Monday, February 25th at 7:00 p.m. This event will include a full presentation of the budget and time for questions and discussion.

The proposed 2008-2009 school budget was endorsed unanimously at the January 21st school board meeting. It will be voted on by Australian ballot at Stowe Middle School on Town Meeting Day, Tuesday March 4.

What is the Proposed 2008-2009 Stowe School District Budget? The proposed budget is $9,110,050. This is a 5.5%, or $478,950, increase over our current budget.

What Drove This Increase?

The school board asked the administration to present us with a budget representing what it would cost to continue to provide the same programs and services we have currently. It should be understood that this is not a simple process of ratcheting up the numbers on everything we are doing this year. This budget reflects significant belt tightening. As you will remember, we cut three teaching positions last year in anticipation of declining enrollment. That decline in enrolment did not occur, therefore we began this budget development cycle already doing more with less.

While there are no new programs, there are new financial obligations to continue two programs we have had in place for two years. These are Spanish in the elementary school and Chinese in Stowe Middle and High Schools. For the past two years, the Stowe Education Fund has paid for the Stowe Elementary School Spanish program. Our agreement was that we would take over the cost of the Spanish program this coming year at a cost of $65,000. Chinese is offered as a contracted service through the University of Vermont with support from the Freeman Foundation. That support declines over the three year life of the grant. Next year?s local obligation requires an increase in the budget of $15,000. After the next school year we will conduct a review and reassessment of our schools? language offerings, as agreed when Chinese was added two years ago.

The last new obligation included in this budget is the addition of interest on the bond. As you will recall, a bond was passed last year to make much needed repairs in all three of our school buildings. The interest cost included in this budget for that bond is $82,000.

Additional cost drivers also impacting the budget are contracted increases in salary and benefits for our teachers and administrators. We are entering the second year of a four year teachers? contract. Per that agreement, salaries will increase 3.3% on the base. Additionally, the cost of health insurance is projected to rise by 5%. The 5% increase in health insurance costs is the lowest rate increase in my twelve years on the board. Though these are relatively low increases, the combined cost of salary and benefits is the single biggest factor in our budget. Heating fuel, electricity, and fuel adjustments to our transportation contract also require budget increases for the upcoming year.

What Does This Do To My Taxes?

The short answer is that the homestead tax rate will increase by $0.0805. This increase is attributable entirely to the impact of the Common Level of Appraisal (CLA). The CLA is the State?s calculation of the increasing value of property in Stowe. The tax rate for businesses and second homes are not impacted by the local school budget, but are also impacted by the CLA, and will increase by $0.00938.

It is disheartening for those of us who have worked hard to maintain the quality of our schools and the lowest possible tax rates for Stowe citizens to see this increase based on the value of our property. We worked hard to keep the District Spending Adjustment, an indicator of taxpayer effort, within a whisker of what it was last year. This year?s District Spending Adjustment is 52.16% and next year?s is 52.31%. Prior to the application of the CLA, the adjusted equalized homestead tax rate is actually down $0.0291.

Where Does Act 82 Come In?

Act 82 does not apply to this year?s school budget vote. Early discussion of this new law has confused people.

Act 82 was passed in the Vermont Legislature last year. It has a number of significant ramifications for our local and district schools. One part of the act is the so called ?Thing Twice? provision which will require some schools to divide their budget into two parts to be voted on separately.

Act 82 does not go into effect until the 2009-2010 school year. While we are working with our representatives in Montpelier to address unintended consequences of the new law, and are positioning ourselves for the least negative impact, this year?s budget vote remains the same as ever.

As is always the case, We can?t tell you how to vote on the school budget. We can only urge you to be informed and to vote on Tuesday March 4th.