Franklin, MA: Town Council - Agenda - May 23 - Budget Hearing #2

The published agenda and documents for the Franklin Town Council meeting scheduled for Thursday, May 23. This is the second of two budget hearings on the FY 2020 budget. The first hearing is scheduled for Wednesday, May 22.

You can also find the full set of documents in one PDF

https://www.franklinma.gov/sites/franklinma/files/agendas/town_council_meeting_agenda_for_may_23_2019.pdf

(Note: where there are active links in the agenda item, it will take you to the associated document)

Agenda Item	Summary
Town Council Meeting Agenda	Meeting of May 23, 2019
1. HEARINGS	FY 2020 Budget Hearing: 7:10 PM  Voting Document FY 20 Budget Message FY 20 Town Administrator Proposed Budget
2. LEGISLATION FOR ACTION
2a. LEGISLATION FOR ACTION	Resolution 19-32: Adoption of FY2020 Budget (Motion to Move Resolution 19-32 - Two Thirds Majority Vote (6))
2b. LEGISLATION FOR ACTION	Resolution 19-33: Amendment to FY2020 Budget (Motion to Move Resolution 19-33- Majority Vote (5))
3. TOWN ADMINISTRATOR'S REPORT
4. COUNCIL COMMENTS
5. ADJOURN

Why are there two votes to pass the budget?

As Councilor Glenn Jones is employed by Tri-County RVTHS, it would be a conflict of interest for him to vote on the Tri-County budget (effectively authorizing to pay himself). The budget votes is split so Councilor Jones can participate in and vote on the vast majority of the Franklin budget and recuse himself (properly so) for the portion that is specifically associated with Tri-County.

Depending upon how the Town Council reviews the budget this year, you may or may not get a whole lot of info on the inside story of the major departments and their cost drivers. In recent years, the Council has taken the approach of reading the totals of the voting doc department by department. 

During such reading of the totals, a councilor or more can put a 'hold' on the item which after the reading will make that item available for more detailed discussion. Sometimes this are simple questions, sometimes these get involved.

From a resident stand point, what really happens in the budget can only be found at the Finance Committee meetings. They have each department head come forward to review and answer questions on the details of their budget. Granted some of the departments budget needs are minor, some are major. 

The first budget hearing for the FY 2020 budget was held on March 18 and recorded. My notes and audio recording is available here

Notes for March 18

https://www.franklinmatters.org/2019/03/live-reporting-finance-committee-march.html

Audio recording for March 18

https://www.franklinmatters.org/2019/03/fm-160-fincom-budget-hearing-1-fy-2020.html

The second budget hearing held on Apr 25 unfortunately was not recorded by anyone. I was out of town on business. If there were minutes of the meeting, the FinCom has not met since the April 25 meeting and no minutes are published to their page.

https://www.franklinma.gov/finance-committee

Voting document

https://www.franklinma.gov/town-council/files/voting-document-fy2020

Budget Message

https://www.franklinma.gov/town-council/files/fy20-budget-message

FY 2020 Proposed Budget

https://www.franklinma.gov/town-council/files/fy-20-town-administrator-proposed-budget

This is the first year in many that there is no need to ask for an exception from
the state due to insufficient funding for the Library

Franklin, MA: Town Council - Agenda - May 22 - FY 2020 Budget Hearing #1

The published agenda and documents for the Franklin Town Council meeting scheduled for Wednesday, May 22, 2019. This is the first of two budget hearings on the FY 2020 budget. The second hearing is scheduled for Thursday, May 23.

Editorial note:

Given the schools have already cut their budget by $2 M, with teachers and other personnel scheduled to be let go, class sizes should increase. It would be good to know by how much? 

Given the decision was reached by default now due to lack of time to schedule, and/or inaction on the part of the Town Council and Administration there will be no opportunity for residents to change the budget at this point. So it would also be good to find out when this decision was made. At least in the meetings I participated and reported on, it wasn't discussed. Or was it at a meeting I missed? Maybe the Finance Committee budget meeting April 25 that wasn't even recorded.  

And given the mention of a possible override for FY 2021, what will be done between now and then to prepare for such a vote? Where is the pain being felt other than in the schools? The Town is hiring in multiple departments. Police are at their largest force in years. The Library doesn't need an exemption for the first time in years. What other services were cut that we would notice? What other services would be in jeopardy next year?

You can also find the full set of documents in one PDF

https://www.franklinma.gov/sites/franklinma/files/agendas/town_council_meeting_agenda_for_may_22_2019.pdf

(Note: where there are active links in the agenda item, it will take you to the associated document)

Agenda Item	Summary
Town Council Meeting Agenda	Meeting of May 22, 2019
1. ANNOUNCEMENTS	This meeting is being recorded by Franklin TV and shown on Comcast Channel 11 and Verizon Channel 29. This meeting may be recorded by others.
2. CITIZEN COMMENTS	Citizens are welcome to express their views for up to five minutes on a matter that is not on the agenda.  The Council will not engage in a dialogue or comment on a matter raised during Citizen Comments. The Town Council will give remarks appropriate consideration and may ask the Town Administrator to review the matter.
3. HEARINGS	FY 2020 Budget Hearing: 7:10 PM Voting Document FY 20 Budget Message FY 20 Town Administrator Proposed Budget
4. LEGISLATION FOR ACTION
4a. LEGISLATION FOR ACTION	Resolution 19-34: Expenditure Limits for FY 2020 on Departmental Revolving Funds Established by Franklin Town Code Chapter 73, as provided in G.L. Chapter 44 Section 53E1/2, as Amended (Motion to Move Resolution 19-34 Majority Vote (5))
4b. LEGISLATION FOR ACTION	Resolution 19-35: Compensation Plan, FY 2020 (Motion to Move Resolution 19-35- Majority Vote (5))
5. TOWN ADMINISTRATOR'S REPORT
6. FUTURE AGENDA ITEMS
7. COUNCIL COMMENTS
8. ADJOURN

Voting document

https://www.franklinma.gov/town-council/files/voting-document-fy2020

Budget Message

https://www.franklinma.gov/town-council/files/fy20-budget-message

FY 2020 Proposed Budget

https://www.franklinma.gov/town-council/files/fy-20-town-administrator-proposed-budget

Legislative Forum hosted by School Committee was meant to bring attention to school budget issues

MassBudget: SWM Committee's FY 2020 budget follows Governor's in revenue, includes slightly more education funding

MassBudget    Information.    Participation.  Massachusetts Budget and Policy Center    Democracy. May 16, 2019 Senate Ways and Means Committee's FY 2020 budget follows Governor's in revenue, includes slightly more education funding The Senate Ways and Means (SWM) Committee's Fiscal Year (FY) 2020 budget proposal goes further in boosting K-12 education funding than other proposals this budget cycle. But, constrained by the lack of substantial, new revenue, the Committee had to propose less funding or relatively small increases in other areas such as child care assistance for low-income families, elder services, and other areas, as discussed in MassBudget's analysis. The SWM budget proposal includes a more comprehensive approach to reforming the public K-12 education funding formula than the Governor and House proposals. However, funding levels in the SWM budget are still somewhat less than the most comprehensive plans being debated currently by policymakers. Updating the funding formula can help ensure that students across Massachusetts, particularly disadvantaged kids, receive a high-quality education. Further, the SWM Committee proposes to fund the Attorney General's Fair Labor Division (FLD) at $4.5 million, which is 8 percent less in total funding than FY 2001 (adjusting for inflation), but is 17 percent less when adjusted for job growth in Massachusetts since then. The FLD enforces the state's wage and hour laws, including minimum wage, overtime, and earned sick time. This funding decrease could weaken many of the increased worker protections and benefits passed in recent years. Regarding revenue, the SWM Committee included many of the new tax proposals first presented in the Governor's FY 2020 budget. (The House, by contrast, includes only the Sales Tax Modernization proposal.) These include a new tax on opioid manufacturers and another on vaping products. Unlike the Governor, the SWM Committee directs these new revenues to off-budget funds dedicated to combating and treating addiction, rather than to the General Fund from which most budgetary appropriations are made.  Like the House and Governor, the SWM budget also relies on pre-existing sources that recently have begun generating revenue (like taxes on marijuana sales and "Airbnb rentals"). While inclusion of these various types of additional revenue may appear to boost the Commonwealth's ability to invest in a range of priorities, in fact, the new revenues would mostly serve to back-fill substantial anticipated revenue losses from several already-scheduled tax cuts. These cuts - along with other, non-tax revenue losses - will impact state collections in FY 2020 and beyond. As is true of the House budget, most additional revenue in the SWM budget comes from a variety of consumption taxes, which hit low-income earners the hardest, and will make the state's tax system more upside-down than it already is. Read the full report here http://massbudget.org/report_window.php?loc=Analyzing-the-Senate-Ways-and-Means-Budget-for-FY-2020.html. Read about the House budget proposal here http://massbudget.org/report_window.php?loc=Analyzing-the-House-Budget-for-FY-2020.html. The Massachusetts Budget and Policy Center (MassBudget) produces policy research, analysis, and data-driven recommendations focused on improving the lives of low- and middle-income children and adults, strengthening our state's economy, and enhancing the quality of life in Massachusetts. MASSACHUSETTS BUDGET AND POLICY CENTER 15 COURT SQUARE, SUITE 700 BOSTON, MA 02108

Massachusetts Budget and Policy Center, 15 Court Square, Suite 700, Boston, MA 02108 Sent by mrivera@massbudget.org in collaboration with Try email marketing for free today! The full set of details associated with the Senate Ways and Means budget for FY 2020 can be found online https://malegislature.gov/Budget/SenateWaysMeansBudget Senate Ways and Means budget proposal for FY 2020

"the declining enrollment helped us, as a community, be able to fund the services people expect”

From the Milford Daily News, articles of interest for Franklin:

"A good economy should equal a sunny fiscal forecast. 

That’s what many residents believe, said Deputy Town Administrator Jamie Hellen, which is why a cloud of suspicion looms over the town budget’s structural deficit entering fiscal 2020. 

“A lot of people are frustrated. In such a good economy, and a great business climate, how are we in this pickle?” Hellen asked rhetorically. 

The answer includes many factors, some of which are not unique to Franklin, said Hellen. 

According to Hellen, the main culprits of the impending deficit include an increased demand for services, increased health insurance costs, charter school expansion costs, declining school enrollment, other post-employment benefits (OPEP) and the cost of doing business in town outpacing the town’s ability to raise revenue."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190509/franklin-seeks-solution-to-structural-deficit


Other budget related info

Legislative update to Town Council on May 8
https://www.franklinmatters.org/2019/05/live-reporting-legislative-update.html

State level budget info
https://www.franklinmatters.org/2019/05/it-is-statement-of-senates-priorities.html

Charter School impact on budget
https://www.franklinmatters.org/2019/05/charter-school-clarifications-on.html

Inside the proposed FY 2020 budget
https://www.franklinmatters.org/2019/04/inside-proposed-fy-2020-town-of.html

March 18 Finance Committee FY 2020 budget preview info (audio)
https://www.franklinmatters.org/2019/03/live-reporting-finance-committee-march.html

Prop 2 1/2 override process
https://www.franklinmatters.org/2019/05/what-is-process-for-prop-2-12-ballot.html

Rising health care costs drive benefits

How much is the School budget part of the whole Town budget

Charter School expansion isn't a driving cause of the FPS school budget deficit

From the Milford Daily News, articles of interest for Franklin:

"Since the expansion of the Benjamin Franklin Classical Charter Public School was first discussed six years ago, Executive Director Heather Zolnowski said its impact has remained transparent with the town. 

And while she believes it’s a factor in the town budget, she says it’s not to blame for the town’s looming structural deficit entering fiscal year 2020. 

“We’ve been talking about this for six years – they knew it was coming,” said Zolnowski in response to comments from Deputy Town Administrator Jamie Hellen that the school’s expansion costs have left a dent in the fiscal 2020 budget. Hellen is forecasting a structural deficit, possibly extending to fiscal 2022 due to a lack of sufficient state funding for the charter school. 

According to Hellen, more than $5 million in town funding is being diverted to the school in fiscal 2020 - $1.1 million more than this year."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190508/franklin-charter-school-head-weve-worked-with-town

Horace Mann statue in downtown Franklin, the father of public education

Related post:

https://www.franklinmatters.org/2019/05/charter-school-clarifications-on.html

Per the legislative update at the Town Council meeting, Wednesday, May 8 the DESE forecast of Charter School funding has caught up to the actual numbers for the projected enrollment at the Charter School. We should see these changes in the budget package being prepared for the Town Council budget hearings scheduled for May 22 and May 23. The Franklin Public Schools still face a deficit and have had to make some hard decisions.

My notes recorded live during the Town Council meeting on May 8

https://www.franklinmatters.org/2019/05/live-reporting-legislative-update.html

“It is a statement of the Senate’s priorities and our values and what we hold dear”

From the Milford Daily News, articles of interest for Franklin:

"Senate leaders unveiled a $42.7 billion fiscal year 2020 budget proposal on Tuesday, virtually mirroring the total spending figure in the House’s budget approved last week but embracing additional revenues the other chamber avoided. 

The Senate Ways and Means Committee’s proposal calls for a 3.1 percent increase in spending over last year’s budget, including what lawmakers describe as a “historic” boost in public education funding, new initiatives to improve mental health and a University of Massachusetts tuition freeze. Those efforts are buoyed by new taxes on opioid manufacturers and vaping products, two ideas backed by Gov. Charlie Baker but eschewed in the House budget. 

“Each line item, each number, is much more than just a number,” said Senate President Karen Spilka in a briefing about the budget. “It is a statement of the Senate’s priorities and our values and what we hold dear.” 

The Ways and Means Committee favorably reported the budget proposal by a voice vote at a Tuesday executive session. Senators can file amendments until noon on Friday and the full chamber will launch its annual string of formal sessions to debate the budget starting on May 21."

Continue reading the article online (subscription may be required)
https://www.milforddailynews.com/news/20190507/senate-budget-boosts-education-mental-health-spending

The full set of details associated with the Senate Ways and Means budget for FY 2020 can be found online https://malegislature.gov/Budget/SenateWaysMeansBudget

Senate Ways and Means budget proposal for FY 2020

Charter School clarifications on Franklin FY 2020 budget impact

The Charter School provides some clarifications on the projected budget impact statements reported by the Town of Franklin and the Public Schools:

"As you may have seen recently in the local print and in social media, BFCCPS has been listed as the main driver of the budget deficit for the Franklin Public School system. Many current and former parents and faculty have shown great support for BFCCPS on social media over the last few weeks. 

Please know that several pieces of information that have been reported are inaccurate. For example, while various articles report 258 new students attending our school next year; only 95 students from Franklin have accepted offers of enrollment for the 2019-2020 school year. As we have 31 grade eight students who will be attending Franklin High School next year, the true impact is only a net of 64 new students attending BFCCPS from the town of Franklin next year. Additionally, articles have repeatedly indicated that our expansion includes a High School offering. We have no plans to expand to grades 9-12. 

When we began our expansion process in 2012, we were intentional in designing our region to have a lessening impact on the town of Franklin. In fact, next year, even with expansion, we will enroll fewer children from the Town of Franklin than before we became a regional school in the 2015-2016 school year."

Continue reading the full write up on the Charter School page
http://bfccps.org/clarification-on-the-impact-of-bfccps-on-the-franklin-public-school-systems-budget/?doing_wp_cron=1556970363.0868589878082275390625

The Town of Franklin has updated their memo that incorrectly reported the expansion would include grades 9-12.  The updated memo can be found online
https://www.franklinma.gov/sites/franklinma/files/uploads/fy20_budget_forecast_and_beyond_0.pdf

Per the Charter School the enrollment increase projected for Franklin should be less than shown in the Dept of Local Service Cherry Sheet estimates but until the numbers flow through the State, the budget impact to Franklin is still a significant increase over prior years ('significant' is currently shown at $1M).

DLS Cherry Sheet estimates:

The 'cherry sheet' reflects the local aid coming to Franklin or assessed against Franklin. Chapter 70 is the school aid. There are also lines shown for the charter school ins and outs.

I have filtered on the DLS page to select Franklin and export to create the PDF shown here. You can view the info online
https://dlsgateway.dor.state.ma.us/reports/rdPage.aspx?rdReport=CherrySheets.CSbyProgMunis.MuniBudgEst




Bottom line: the school funding calculations provided by the State short change all Franklin students, period. There should not be a charter vs. public school debate. We should be united in getting a more realistic funding formula. Why? Whatever is allocated for the Franklin Public School students will flow to the charter school students, so if there is more for one there will be more for the other. If the public school budget is cut (as it will be this year), the Charter School student will ultimately see that (in some manner - I am not an expert on State funding flows, but from my experience that is what will likely happen).

Horace Mann statue in downtown Franklin, the father of public education

Inside the Proposed FY 2020 Town of Franklin proposed budget

In answer to some questions on rising cost of health insurance and it impact on the budget, I offer the following. Per the budget voting document released for the Finance Committee for the March 18, 2019 meeting I have copied the following numbers.

1 - Rising health care costs drive benefits

	FINAL - FY 2017	FINAL - FY 2018	FINAL - FY 2019	Proposed - FY 2020
Subtotal, Employee Benefits	10,955,567	11,693,882	12,360,354	12,315,354

Will the benefits line item really come down in 2020? 

Probably not. These numbers are preliminary and will likely change before the Town Council sees the 'final' budget numbers for their May budget hearings (May 22-23)

Rising health care costs drive benefits

2 - How much is the School budget part of the whole Town budget?

	Proposed - FY 2020 Percent
Subtotal, General Government	8.9%
Subtotal, Public Safety	10.5%
Subtotal, Education	57.5%
Subtotal, DPW - Highway	4.2%
Subtotal, Human Services	0.6%
Subtotal, Culture & Recreation	1.4%
Subtotal, Debt & Interest	5.9%
Subtotal, Employee Benefits	10.6%
Subtotal, Liability Insurance	0.5%
	100.0%

The Schools budget here includes Tri-County, Norfolk Ag and the Franklin Public Schools. As near as I can tell, the Charter School portion comes in and out on the State funding lines of the budget document.

How much is the School budget part of the whole Town budget

The spreadsheet copy of these numbers can be found online. The original Town of Franklin doc is also found online.

Spreadsheet

https://drive.google.com/file/d/14PgwpH5SWfA79QBgNblPG_w2bM11NU8x/view?usp=sharing

Town of Franklin budget doc

https://drive.google.com/file/d/1diIXj9_EGFCR165veeg8-SFPi4ox202d/view?usp=sharing