One of the most important priorities of the Andover School Board (ASB) is advocating for a budget that will deliver a high quality education for the town’s children. Small town budgets, however, do not exist in a vacuum. As a result, the ASB is perennially sensitive to the non-school related needs of the people of Andover. 

This year — perhaps more than in recent history — has been very challenging for people throughout the country. People in our town have had to take care of sick family members, manage lost employment opportunities, balance the uncertainty of the school-schedule and navigate the challenges of daily life without consistent social connection. 

Given the devastating realities of the ongoing pandemic and its economic consequences, the proposed school budget needed to successfully balance the significant needs of the school with a respect for all taxpayers and other town priorities. To that end, the ASB presented to the Budget Committee on January 6 and 13 and the Budget Committee deliberated on January 20. In a majority vote, the Budget Committee accepted the Andover School District’s (ASD) proposed budget for the 2021-2022 school year.

In addition to the school operating budget, the ASB will be proposing two warrant articles of note. Looking for creative and cost-effective ways to increase teacher’s pay scale, the ASB negotiated a three-year agreement with the Andover Education Association (AEA). Warrant Article 2 is to see if the town will raise $90,795 for the first year of the three-year collective bargaining agreement (CBA). 

This increase will be completely funded with a change in the deductible exposure in employee health plans. By affirmatively voting on Warrant Article 2 prior to reviewing the operating budget with the town, the ASB can then make a motion to decrease the proposed budget by the amount of the proposed salary increases, thereby offsetting any additional cost to the town.

For the second consecutive year, Warrant Article 5 asks the town to vote to reserve $30,000 from the unassigned fund balance for our Building and Maintenance Expendable Trust Fund. This is in order to help continue building up this trust fund so that when our boiler needs replacing, the total cost will not have a dramatic impact on a future school budget. 

It is important to note that Warrant Article 5 is not asking the town to raise any additional money to cover this expense. To be clear — Warrant Article 5 is requesting the ability of the ASD to reserve $30,000 from the school’s unassigned fund balance from 2020-2021.

Assuming that the town votes to approve the ASD-AEA CBA from Warrant Article 2, thereby triggering a motion from the ASB to reduce the school operating budget by the same amount, the overall increase in the budget from the current 2020-2021 school budget to the proposed school operating budget of 2021-2022 is 1.72%. Further, absent the state downshifting in mandatory retirement increases ($47,000), the normalized increase from the current school budget to the proposed operating budget would be 0.94%. 

For context, in a survey administered by Superintendent Mark MacLean in January 2021, 29 districts around the state were polled regarding their proposed percentage increases in school budget expenses. Seven reported an increase of less than 1%; six reported an increase of less than 2%; four reported an increase of less than 3%; and 12 districts reported an increase over 3%. 

As for the specifics of the proposed operating school budget for 2021-2022, there are four major drivers in the budget increase of 1.72% from the current operating budget. The first and
most prominent area of increase (94% of the total budget increase) is the increased enrollment at the high school, detailed in the 1100 (Regular Education) Function. In the spring of 2021, 12 Andover seniors will be graduating from MVHS, and the current AE/MS eighth grade class has 33 students.

Per the ASD-MVHS tuition agreement, the ASD pays MVHS $14,000 per student per year to attend MVHS. This long-standing agreement on tuition is very cost effective for Andover taxpayers. For context, the following is the cost to educate high school students in two surrounding districts, 2020-2021: Franklin School District: $18,717 per student; Kearsarge Regional High School: $21,925 per student; New Hampshire state average: $19,874 per student. 

Also included in the 1100 Function is a proposed reduction of one classroom teaching position. Based on the decrease in elementary and middle school enrollment numbers, the ASB is confident that this reduction is appropriate and fiscally responsible.

The second major driver of increase in the proposed budget is the state downshifting of mandatory retirement increases, which represents $47,000 throughout the budget. In recent years, legislators at the state-level have continued to shift their responsibility to local communities to cover these increased costs. Additionally, the proposed budget sees increases of $8,000 in health and dental expenses based on changes in premiums. 

The third major driver of increase in the proposed budget is related to special education. There is an increase of $47,735, which is tied to out-of-district special education tuition. Additionally, there is approximately $72,500 in increased anticipated expenses for unique special education services. These are highly specialized contracted services where the school has to work with outside agencies to deliver and/or augment services outlined in legally mandated individualized educational plans. 

Lastly, the fourth major driver of increase in the proposed budget is the previously approved
contract between the ASD and the Andover Support Staff Association (ASSA), which adds $13,785 to the budget.

There are some notable decreases in the proposed budget as well. The major net decreases are due to expected transportation expenses in special education ($64,629); a reduction in the Salary Pool given a lack of expected separation pay ($31,012); a decrease in the annual bond interest from the recent facilities project ($7,412); a decrease in worker’s compensation ($2,727); a decrease in ASD’s share of the SAU expenses ($4,347); a reduction in legal expenses ($1,500); and a reduction in heating oil expense ($11,000).

Unfortunately, the estimated revenue from state and federal funding is projected to be lower than in previous budget years. For instance, in the Adequacy Education Grants, the ASD is projected to receive $153,645 less than in our current fiscal cycle. The ASD is also projected to receive $28,889 less in Statewide Property Tax. These two revenue shortfalls represent approximately $182,000 less in revenue for the ASD. 

Part of the adequacy revenue is the amount of money the ASD receives in Free and Reduced Lunch Aid. This is significantly down due to the lack of applications submitted by members of our community. There is possible legislative hope on the horizon given some of the work being done in the statehouse. 

Additionally, if all Andover parents with children at AE/MS filled out a free and reduced lunch application, regardless of need, this revenue would increase. These applications are posted on the AE/MS website. 

We look forward to gathering as a community at the District’s Annual Meeting. Information about this gathering is forthcoming.