CCS Consolidation Study (closing the Middle School) and 2013-2014 Budget

At the April 16 meeting of the Board of Education, the tentative 2013-2014 budget was approved. It includes a tax levy increase of 3.60%. As you may know, the “2%” tax cap is not a fixed 2%. It is a starting point from which a number of adjustments can be made based on certain capital expenditures, retirement plan contributions and some other adjustments. For Chatham, the cap for 2013-2014 is actually 4.34%, so the proposed increase is within the cap, requiring a simple majority vote to pass on May 21, the date of the vote. If the proposed levy exceeded the cap, it would require a super-majority of 60% to pass. Much of the increase is due to state mandated retirement plan contributions.

 Overall, I think the proposal is reasonable and recommend voting for it.

 However, of greater long-term importance is the issue of closing the middle school.

 I attended the town hall meeting on March 28 regarding the possible closing of the middle school. On face value, closing the middle school will result in significant savings even with the multi-million dollar capital improvement proposals that would be required, but it is my opinion that upon deeper examination of these plans, these expenditures are excessive.

 Three options were presented:

Keep the middle school open (non-consolidation, called Option C), which would require capital improvements totaling $5.66 million

Close the middle school (consolidation, called Option A), which would require capital improvements of $12.47 million

Close the middle school (consolidation, called Option B), which would require capital improvements totaling $13.04 million.

 At its June 25 meeting, the board will decide whether or not to close the middle school. Whether they do so or not, any capital expenditures will have to be approved by the voters, probably in November.

The district’s financial consultant estimated that the capital improvements necessary to keep the middle school open (option C) would cost approximately $92 thousand on an annual basis to service the debt that would be incurred, while options A and B (closing the middle school) would result in net savings of $411 thousand (A) and $384 thousand (B). The savings in the latter two options would be the result of saving approximately $800 thousand in annual expenses by closing the building, along with state aid for part of the capital costs.

However, while these savings sound appealing, the are based on what are in my opinion extravagant expenditures well beyond what are necessary to maintain the educational standards we subscribe to.

When they put up the details of the various capital improvement options I had a sinking feeling of déjà vu. If you need a refresher or were not around at the time, read the blog posts beginning at the earliest ones in 2007 when the then-current board proposed $47 million in capital improvements. As a results of community response, it was scaled down to 2 separate proposals ($25 million and $10 million), both of which were defeated by margins greater than 5 to 1. The board then presented a single $6 million proposal, which was passed by the voters.

Many of the components in the current proposals sound to me like “nice to have” wish-list things but not critically required (gym additions/renovations, data/power/seating upgrades in the auditorium, cafeteria renovations in both MED and HS, etc.). I was surprised that option B ($13 million) includes expanding the MED gym to seating capacity of 700 (this in an environment that includes the current kindergarten enrollment of 72 students!).

The following graph and spreadsheet represent my projections of the enrollment. The figures in red are the actual current enrollment for 2012-2013, and they are carried forward at their current level until the present kindergarten graduates. The figures in black are enrollment projections made by the board’s consultant based on actual live births and estimates they have made. Note in particular the enrollment forecasted in 2015-16 of 1094 students, a decrease of 116 students or almost 10% from today. This year is important because the 2015-2016 school year is the earliest the middle school would close under either Option A or B, so we would be spending $12.5 or $13 million to build larger facilities to house a significantly declining population.

 

 



The Board's enrollment projections are given here:

http://www.chathamcentralschools.com/Facilities_Study/Enrollment_Projection_Report.pdf

Their study is dated November 2011, so the data I have used is more current and shows a larger decline than their study does.

 

 I am also concerned that that Option A ($12.5 million) includes almost $2.5 million for MED gym addition and renovations and Option B ($13.0 million) includes $2.9 million for an even larger gym! This latter option should never have seen the light of day – what were these people thinking? By the time these projects are completed the school population would have declined by nearly 10% from today. How many teachers would the additional $400,000 pay for? In fact, the gym expenses are far and away the largest items in those two proposals – is there some sort of reality disconnect or is it just me?

 

Furthermore, there are no specifications regarding the various improvements, no range of estimates suggesting different levels of improvements showing tradeoffs and costs. I find it hard to imagine we need to spend $2.5 or $2.9 million on a gym – there must be a cheaper way to do it if indeed we need to do it at all.

 

While I personally am somewhat on the fence about closing the middle school, perhaps leaning towards doing so, I am absolutely opposed to doing so along with either of the two options proposed without a very thoughtful examination and cost-benefit analysis by the entire board (as opposed to just the 3 member facilities committee) as to what is really necessary in terms of capital improvements. While closing the middle school under either proposal suggests cost savings, a more realistic capital improvement proposal could result in even larger cost savings. Can we achieve our goals without spending so much money?

 

Here is the link to the district’s information regarding the consolidation study:

 

http://www.chathamcentralschools.com/Facilities_Study/index.asp

Here are the details of the proposals:

 

Option C - keep middle school open (plus capital improvements of $5.66 million):



 

 

 

Option A - close middle school (plus capital improvements of $12.47 million):

 

 

 

Option B - close middle school (plus capital improvements of $13.04 million):