SAU#9 Study Committee February 28th, 2019 Objectives for this - - PowerPoint PPT Presentation

SAU#9 Study Committee

February 28th, 2019

Objectives for this evening

• Committee members will have an understanding of the current eight town

tuition contract language including but not limited to: funding formulas,

• bligations, and timelines.
• Committee members will be able to describe the influence of variables related

to funding education in the different towns should the funding formula change in tuition agreements.

Overview of Conway Tuition Agreement (K-6)

(Eaton and Albany have such agreements)

• Twenty year (20) agreement beginning on July 1, 2006
• Opt-out notification after the seventeenth (17th) year (June 30th, 2023)
• Eaton shall send 100% of their students to Conway for elementary education
• Albany shall send 75% of their students to Conway for elementary education
• Current Conway school choice policy allows for Albany/Eaton students to attend Conway

Elementary School, Pine Tree Elementary School, or John Fuller Elementary School

• Albany/Eaton are responsible for contributions to the facilities maintenance fund and current bonds

(calculated by % equalized valuation)

• Any student who comes from outside the agreement will be charged the

highest tuition rate within each agreement (ie. Hale’s Location).

Overview of Conway Tuition Agreement (7-8)

(Eaton, Albany, Madison, and Freedom have such agreements)

• Twenty year (20) agreement beginning on July 1, 2007
• Towns shall send 90% of their students to Conway for schooling
• Any student who comes from outside the agreement will be charged the highest tuition rate within

each agreement (ie. Tamworth).

Overview of Tuition Agreement (9-12)

(Eaton, Albany, Madison, Freedom, Tamworth, Jackson and Bartlett have such agreements)

• Twenty year (20) agreement beginning on July 1, 2007
• Towns shall send 90% of their students to Conway for schooling
• Any student who comes from outside the agreement will be charged the highest tuition rate within

each agreement (ie. Hale's and Hart's Location).

Overview of Tuition Agreement

• Capital Improvement project (inclusive of bond) payments are calculated by the town’s equalized

value as a % of the total equalized value of all towns

• Operational Cost Payments calculation for all agreements

○ Combination of 35% of the towns’ equalized value as a percentage of the total equalized value and 65% of the town’s average daily membership (ADM) in attendance of the total average daily membership in attendance at the elementary schools (K-6).

Tuition Rate Calculations Consist of:

ELEMENTARY MIDDLE HIGH SCHOOL

Bond/capital improve (100% EQ Val) MS Bond (100% Eq. Val) HS Bond (100% Eq. Val) Operational Cost (35% Eq Value- 65% ADM) MS Trust (100% Eq Val) CTC Bond (100% Eq. Val) Elem Trust (100% Eq Val) MS Oper Cost (35% Eq Value- 65% ADM) HS/ CTC Trust (100% Eq. Val) HS/CTC Oper Cost (35% Eq Value- 65% ADM) Subtotal cost Tuition = Cost divided by ADM

What is in and out of the tuition calculations:

IN tuition calculations OUT of tuition calculations

Regular Education Expenses Special Education - Out of District Placement (including transportation of student) Co-curricular Expenses Special Education - Child specific needs (i.e. staffing costs, equipment and service) Transportation of all students

Average Daily Membership

and

Equalized Value

Average Daily Membership (ADM)

The town’s average daily membership in student attendance of the total average daily membership in attendance at the school(s).

65%

• Use data from previous school year for

calculation of upcoming school year rate. (Example: 2017/2018 ADM used for 2019/2020 calculations)

Equalized Value

The town’s equalized value as a percentage of the total equalized value.

35%

• Represent the fair market value of most
• property. The equalized value of current

use property is equal to the value of property that would generate the same tax revenue.

Method of Calculation

2019/20 Elementary Tuition Calculation Average Daily Membership (ADM) Only

Using actual 2017/2018 ADM

2019/20 Elementary Tuition Calculation Equalized Value Only

Using Fall 2018 Equalized Value

Using actual 2017/2018 ADM

2019/20 Middle School Tuition Calculation Average Daily Membership (ADM) Only

Using Fall 2018 Equalized Value

2019/20 Middle School Tuition Calculation Equalized Value Only

Using actual 2017/2018 ADM

2019/20 High School Tuition Calculation Average Daily Membership (ADM) Only

Using Fall 2018 Equalized Value

2019/20 High School Tuition Calculation Equalized Value Only

Calculating Tuition for 2019/20

2017/2018 Actual Average Daily Membership Fall 2018 Equalized Value as published by

• Dept. of Rev. Admin.

Approved 2018/2019 Operating Budget Cost Adjustments Made - Fall 2019 Once the books are closed to Conway Expenditures, adjustments are made

Average Daily Membership Equalized Value Operating Budget Cost Adjustments

Breaking Down High School Calculations

Method of Calculation (ADM & Equalized Value)

Based on 2019-2020 High School Tuition Calculations

ADM % EQ Val% Combined % Conway 48.74% 34.71% 43.8295% Eaton 0.34% 2.23% 1.0015% Albany 3.71% 2.19% 3.178% Freedom 4.03% 11.14% 6.5185% Madison 14.64% 10.62% 13.233% Bartlett 12.08% 22.56% 15.748% Jackson 3.67% 8.68% 5.4235% Tamworth 12.79% 7.87% 11.068%

Operating Budget Only

Elementary School Tuition Rate History - 5 year

(inclusive of operation, maintenance and bond)

Middle School Tuition Rate History - 5 year

(inclusive of operation, maintenance and bond)

High School Tuition Rate History - 5 year

(inclusive of operation, maintenance and bond)

K-12 School Tax Rate History - 5 year

High School Tax Rate History by Town

• Incl. HS Bond, Maint.

Trust & Operations (w/ adjustments) (65/35 ratio)

High School Tax Rate Comparison (Eaton & Albany)

27.47 Students (Albany) 2.53 Students (Eaton)

High School Cost per Pupil Comparison

(Eaton & Albany)

Equalized Valuation per Student

All information taken from the NH Department of Education Website: https://www.education.nh.gov/data/financial.htm Data is from the 2017-18 year. Town Equalized Value Per student

• Eq. Value

(%ile- rank out of 290)

• Educ. Tax Rate

Per $1,000 of eq. valuation

• Ed. Tax Rate

(%ile -rank out of 270) State Average 983,646 12.70 Albany 1,064,329 58% (110) 13.93 45.6% (147) Bartlett 4,017,186 93% (19) 6.21 10.4% (242) Conway 1,218,198 63% (90) 11.06 27.8% (195) Eaton 4,733,504 95% (13) 6.00 10% (243) Freedom 4,616,177 95% (14) 6.63 11.5% (239) Jackson 5,178,507 95% (12) 5.82 8.5% (247) Madison 1,668,158 79% (63) 10.98 27.4% (196) Tamworth 1,155,646 63% (99) 15.01 58% (122) Berlin 325,535 19.18

Amount raised by $1.00 increase in taxes/thousand

Town 2017 Conway $1,447,967 Bartlett $1,055,724 Jackson $398,329 Albany $111,970 Eaton $110,384 Chatham $49,159

Other factors when considering future agreements

• Retiring bond at KHS and KMS
• CPI + 2.5%
• Maintenance Trust Funds- Increase amount annually in lieu of bond
• New legislation for school choice
• Change in high school size may impact programming and school culture