By Patrick Adrian
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LANGDON — Charlestown residents could face a significant tax increase in the 2021-2022 school budget, in large part from a projected loss of more than $1 million in state funding next year.
The Fall Mountain Regional School District will hold a public hearing on Thursday, Jan. 14, to present a proposed operating budget of $32.9 million for the 2021-2022 school year. The proposal is an increase of 1.41%, or $456,806, from the current year.
The new proposal, if approved, would carry a tax rate impact in Charlestown of $4.20, equivalent to an additional $420 per $100,000 of assessed property.
According to SAU 60 Chief Finance Director James Fenn, while the budget includes some new expenditures, such as approximately $170,000 total for hires of a clinical social worker and a new special education teacher for Charlestown’s schools, much of next year’s budget impact stems from major revenue losses.
“Overall our budget impact from spending is relatively small,” Fenn told the Eagle Times on Monday.
In Charlestown, the total impact of new spending — including a special warrant article containing a new district teacher contract — is $239,861, an increase of only 85 cents to the town tax rate.
The impact on Charlestown stems primarily from an anticipated loss of over $1 million in state aid next year and the town’s low equalized valuation.
“We could cut some spending, but no way could we absorb that much loss,” Fenn said. “We’ve known for years there was a need [in Charlestown’s schools] for a clinical social worker. We could cut the social worker position, but I’m not sure that would be good for the kids.”
A clinical social worker holds a Masters degree and a clinical license in social work, and is certified to make clinical diagnoses, administer therapeutic services and work closely with other agencies and community partners, according to Fenn.
The special education teacher, who would work at both North Charlestown Community School and Charlestown Primary School, is necessary to assume some of the student caseload in the schools.
Charlestown’s anticipated losses in state aid next year include a loss of $943,804 in one-time aid the town received in the current state budget and a projected decrease in annual per pupil aid of $66,000, greatly due to a decline in Charlestown’s student enrollment.
Charlestown’s enrollment has dropped by 17 students, according to Fenn.
The state of New Hampshire funds each district with an “adequate education” rate of $3,708 per pupil, totaling a loss of over $63,000 in funds to Charlestown.
Additional revenue is potentially lost from eligible families who do not submit a federal free-or-reduced lunch form, according to Fenn.
Both New Hampshire and the federal government calculate some funds to local schools based on the number of students eligible to receive free-or-reduced lunches. New Hampshire uses these applications to determine additional per-pupil funds to address additional educational needs that can arise from poverty-related issues.
Though Fenn did not have exact numbers, Fenn said some of the drop in free-and-reduced lunch applications may be attributable to the novel coronavirus pandemic. In addition to many families opting to homeschool their children for safety reasons, school lunches have been free to all students during the pandemic, from April 2020 to present, so many families did not complete an application this year.
Many families do not realize that those applications determine funding to schools, regardless of whether the family eats the school lunches or not.
The 2020-2021 default budget, which would take effect should district voters reject the budget proposed in March, is $33 million, which is $154,529 more than the current proposal.
Under New Hampshire law, the default budget is set by totalling the current year’s operating budget with next year’s contractual obligations, such as employee contracts or debt services.
Some anticipated savings next year include $190,000 less in early retirement benefits and $160,000 less per year in transportation. Fenn said the district has reduced two driver positions by switching from minivans to minibuses to transport special needs students to out-of-district programs. The district purchased two minibuses this year, which can carry up to 14 students, or twice the capacity of the old minivans.
New costs next year include $800,000 in contractual obligations, Fenn said. These include an additional $527,000 to retirement, $175,000 to personnel health plans and $104,000 to the support staff in the third year of its collective bargaining agreement.
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