A. OPENING

PRESENT: Edwards, Hackett, Holmes, Huyler, Lok, O'Neill, Rizzo, Robinson, Thresher

ABSENT: None

ALSO
PRESENT: Superintendent of Schools Beitman, Director of Student Support Services Tait, Assistant Superintendent for Curriculum & Instruction Brett, Director of Human Resources Attorney Libby, Business Manager Huot

ABSENT: None

Mr. Robinson called the meeting to order at 7:30 p.m. and a quorum was established.

Mr. Robinson led the Pledge of Allegiance.

Moment of Silence for Jan Wodal
Mr. Beitman stated that on September 4, 1985, Jan Wodal was hired as a music teacher for Manchester Public Schools. On March 9, 2004, she passed away suddenly. On behalf of the school district, he extended their deepest sympathy to her family and asked everyone to take a moment of silence in memory of Jan Wodal.

Reading of "Flying Together"
Mr. Beitman stated that several weeks ago, Mrs. Lok attended a program at Illing Middle School. When she was there, she heard a selection read by Jacqueline Benton, a sixth grade student. She asked if Jacqueline could present her work at a Board meeting.

Mrs. Lok thanked Jacqueline for attending and coming forward to read her excellent piece of work. Jacqueline read her poem about diversity entitled: "Flying Together".

Mrs. Lok stated that she saw and heard many fine works during her visit at Illing, and found Jacqueline's to be especially touching and timely. She encouraged Jacqueline to take her work further and share it at every opportunity that arises. On behalf of the Board, she presented Jacqueline with a Certificate of Recognition in appreciation for her reading and sharing of her poem.

Mr. Beitman asked Justin Smith and Jacqueline to proceed to the podium. He stated that it is the time of the year the Board recognizes student achievement, and it is also the time to recognize Board members who sacrifice their own time for a community effort to improve the public schools. He asked the students to present coffee mugs to the all the Board of Education members, which are gifts from the students in the Manchester Public Schools.

Minutes of March 8, 2004
Mr. Robinson asked for a motion to accept the minutes of March 8, 2004.

MOTION: Hackett/Edwards s.v. The Board of Education accepts the minutes of March 8, 2004. (8/0/1 - Hackett)

B. PUBLIC COMMENTS
1. Milt Perlman, 3 Sanford Road. He congratulated Jacqueline Benton for recognizing the problem of diversity and writing about it. He asked why, whenever there is a cut to the budget, it ends up affecting students by taking away sports, music, etc. He referred to the joint BOD/BOE meeting, and agreed that the budget increases are choking the taxpayers. However, he believes people are still moving into Manchester based on the new housing developments. He believes the budget discussions are always about building and money, but never about education. He believes taxpayers would like to get some proof that when a student graduates from high school, that they are knowledgeable. He stated that he does not believe the town of Manchester can afford the building program that has been proposed.

2. Terry Werkhoven, 88 Santina Drive. He also congratulated the student on her wonderful presentation. With regard to the publication of the School Bell, it indicates that 13 percent of the entire school population (over 1000 students) is in need of special education. He does not believe that the taxpayers are aware of this dilemma, and what it costs for the education of these students. He asked why there are so many students who are in need of special education. With regards to Waddell School basement storage, where classrooms are proposed, he believes the existing conditions are extremely warm with no ventilation. He also spoke about the problems on the roof and reviewed the history and warrantees associated with the roof. He stated that someone with expertise and who is trustworthy should be consulted regarding these problems. He referred to a national publication to use for selection of architects and consultants and believes it should be used.

3. Stephanie Knybel, 138 Bobby Lane. She stated that she left the joint Board of Education/Board of Directors meeting frustrated in regard to the Bennet plan. She was taken back when it was suggested to have a combined meeting to tour the building. She stated that Bennet has been on the referendum for school buildings for four years, and for as long as there has been a discussion regarding renovations to the buildings. She can't imagine that all that came out of the meeting was a decision to tour Bennet, and she believes it was a total waste of time. She implored the BOE and BOD to step up and take some action quickly. She was also disappointed when she saw the proposed budget cuts. She hopes that some of the programs and positions will be restored, and hopes that savings will continue to be looked for in order to fund a full education budget.

4. John Tucci, 352 Hilliard Street. He stated that he came before the Board a month ago to speak about professional development and called Mr. Beitman's office to ask for information regarding the Efficacy Institute. He has not received the information from Diane Kearney yet. He was told that this program would make education better, improve test scores, etc. He referenced an article where Ms. Kearney stated test scores could go down dramatically. He asked if the institute was so go, why the test scores would go down. He also asked how much the district is paying for it, and who brought it into the district. With regard to the Forum on Racism, he stated that he is tired of liberals setting the parameters of the debate. He stated that Manchester has worked very hard to make this a diverse community, and believes the town was slammed in the newspapers based on one racial incident. He proposes that there should be another forum headed by the minority leadership to assess their responsibility to live in Manchester.

5. Tom Stringfellow, 183 Hillstown Road. He stated that March is Women's History month, and recommended, A is for Abigail. He also noted, since he is an employee of the U.S. Postal Service, two women in top governments positions, noting as well, the women serving in Iraq. Regarding Bennet, he hopes that something can be done quickly with renovations or relocation. Regarding culture, he did attend the Forum on Racism and agrees that people in the community have to take responsibility. He believes Manchester has come a long way, but believes everyone needs to step up to make it more positive. He recommended U.S. World News and Teaching Tolerance, Spring 2004, and Hispanic Nation for articles related to this subject. He asked Mr. Tucci to be part of the solution instead of part of the problem.

6. Pat Sullivan, 22 Dudley Road. She stated that since 1993, she is a two-time survivor of cancer. Her doctors are very important to her. She learned that the new health proposal does not include her surgeons or oncologist. She urged the Board to stay with the Anthem plans with a proven record. She believes she is alive today and doing good things for the children of Manchester because of her healthcare, and would like to continue to beat the odds.

7. Bob Mumford, 61 Hilltop Drive. He had three children in school. He stated that he does not support the budget and believes it is too low. The paraprofessionals that have been cut will ultimately put more pressure on the teachers. The teachers are expected to do more, and at the same time, are being asked to give concessions. He believes the town-wide coordination should be reinstated, especially in the music program. He believes it is important and has been very successful. He believes all the fat has been removed from the budget, and we are now into the meat, asking people to do their job with less. The Board of Directors has to come up with more creative ways to find money to fund the programs, or budget cuts will continue from year to year.

8. Barbara Stambo, co-President of Local 1303-223, Manchester Association of Educational Secretaries. Regarding the proposed health care change from Anthem to Cigna, she stated their concerns include physicians that do not participate, higher out of pocket costs, CIGNA's financial stability, their ability to service employees in light of 3000 layoffs, and actual accounts of poor service and claim handling by individuals and a neighboring town. She referred to South Windsor's experience of changing to CIGNA and changing back within one year because of significant problems. She referred to the large run out costs that would be imposed by Anthem significantly cutting the amount of savings. She pointed to physicians that do not currently participate and believes the amount overall used by Manchester employees could be of great magnitude. She stated that this is not a change that her union stands behind, and they are infuriated by being intimidated into changing to a less expensive plan. She urged the Board to support them with the Board of Directors in halting the proposal. She also addressed the 2.57 secretarial layoffs in the proposed budget. She reminded the Board of the important role they play in supporting students and certified staff. She stated that everyone has a unique job function with no overlapping responsibilities. She believes the loss of any one position will result in the loss of efficiency to the system. She stated with the loss of three positions the prior year, they are stretched to capacity. She stated that they do not believe it is the employee's responsibility to fund the educational budget. She prepared a spreadsheet detailing the secretarial positions, including ratios to students and staff, for the Board's review.

9. Jack Benton, 200 Knollwood Road. He stated that moved to Manchester from Florida in 2000. They selected Manchester because of the schools, as they were rated high nationally. The poem his daughter read tonight was a courtesy of her teachers. He stated the play of "My Fair Lady" at the high school was exceptional and invited the Board to see "The Sound of Music" produced by Illing. He stated that when the budget is cut, it is these types of programs that are cut. This impedes the learning of the children. He asked who is going to take on important jobs in the future if the students are given the opportunity to learn.

10. Chris Prytko, Teacher at Manchester High School, and Union Representative. He spoke about the proposed change from Anthem to CIGNA. When he heard about the change, he email the staff to check the CIGNA website for physician participation. Out of 150 staff members, at least 50 responses came in one day citing 94 doctors that were not listed in the plan. He believes this is a significant problem and shows that CIGNA cannot be a comparable plan. He also searched the Internet for recent articles on CIGNA, and cited several regarding layoffs and settlements. He believes the company should be looked at for stability. He urged the Board to stay with the current Anthem plan.

11. Jacqueline Benton, student. She spoke about budget cuts and heard that World Languages are scheduled to be cut. She stated the students in the middle schools want to take languages and will not be prepared for high school if they don't, or for business later in life. She also stated that sports are an important part of education for students. The music program is amazing, and students are very talented. If these programs are taken away from students, there is nothing for them.

C. CONSENT CALENDAR
Mr. Beitman reviewed the items on the Consent Calendar. Mr. Beitman explained that Exhibit 1 was distributed to Board members, which is a list of non-tenured teachers recommended for non-renewal due to budget considerations. According to general statutes, non-tenured teachers who are not noticed prior to April 1 are automatically rehired for the next school year. Because the budget is in such a state of flux, this has become a common practice by superintendents throughout the State of Connecticut, to provide the Board of Education with a list of those staff not to be renewed.

1) Personnel Action

Non-Renewal of Teachers
The Superintendent recommends that certain teachers, as listed in Exhibit A (to be distributed the night of March 22, 2004), be non-renewed for the next school year.

2) Increase in Appropriation for Education Special Projects - $8,000 for a total of $50,000,
Out-of-District Magnet School Transportation Grant for the 2003-04 fiscal year, funded by
The State Department of Education

3) Appropriation for Education Special Projects - $112,500
Local Competitive Title II, Part D, Enhancing Education Through
Technology Grant, funded through the Federal government

4) Permission to Apply for Education Special Projects - $77,000
The Barnes Foundation Grant, funded through the Dorr Foundation,
The George H.C. Ensworth Memorial Trust, The Falk Foundation for
Excellence, and The Lawson Valentine Foundation

5) Permission to Apply for Education Special Projects - $25,000
Savings Bank of Manchester Charitable Foundation Grant, funded
Through the Savings Bank of Manchester

Mr. Robinson asked for a motion on the Consent Calendar.

MOTION: Hackett/Rizzo s.v. The Board of Education adopts the items listed on the Consent Calendar. (9/0/0)

Mrs. Lok asked Mr. Beitman to review the budget process with regard to item C1 - the non-renewal of teachers for the public's benefit.

Mr. Beitman stated that many dates are driven by the Town's Charter, and some are driven by Connecticut's General Statutes. On March 23, the General Manager would release the town budget to the Board of Directors. On April 1, there will be a public hearing regarding the town budget. On April 7, there will be a public hearing regarding the Board of Education budget. The meetings will be held at Waddell School at 7:00 p.m. This year, the Mayor has asked for two separate meetings to be held to address town and education budget items. On May 4, the Board of Directors will approve a budget for 2004-2005, and the Board of Education will receive an appropriation on that night. On June 9, the Board of Education will adopt and approve a budget. The budget for 2004-2005 begins on July 1 and carries through until June 30. He stated that the public could comment at every Board of Education meeting and at the first Board of Directors meeting each month.

D. SUPERINTENDENT'S REPORT
1. 2003-2004 Budget Update
Mr. Beitman stated the budget for 2003-2004 was frozen almost immediately on July 1. The reason for this was because promises of continued funding from State and Federal sources could not be guaranteed, although the appropriation from the Town was guaranteed. Ways to save or consolidate funds were looked at in the Board of Education budget. By September, there was already a deficit. Mr. Huot distributed charts, number 8 and 9, of the budget updates. These have been provided monthly, and the numbers have fluctuated. The cause of the fluctuation has been a combination of several things, one being mid-year budget cuts. Prior to last year's budget, when the Town received notice from the State government of funding, that promise remained firm. Beginning two years ago, and continuing, the Town has received periodic notifications that promised funding is being reduced, capped or eliminated. This is true for all districts in the State. The two areas that have had the greatest impact are in Special Education transportation, and in Excess Costs (those costs above five times the per pupil costs of placing a child in a special facility). These costs have been capped in terms of reimbursement by the State government; however, the needs of the children have not changed. A number of positions have been frozen across the Board, and certain levels of supplies have not been ordered or maintained, because it is the responsibility of the Board of Education to end in the black on June 30. Through these monthly updates, the Board is brought up-to-date on monthly expenses and revenues. Federal funding is approximately 10-17 percent of a required 40 percent, which means costs are passed onto the Manchester taxpayer. The Educational Cost Sharing grant is capped for Manchester and other large municipalities, costing the taxpayers in the community $4M a year. The Excess Cost grant is now capped, and next year, it will be an additional $500,000 in the Board of Education budget. The Governor's proposal of magnet schools would require an additional $400,000 next year to maintain the same number of students currently enrolled. There are tremendous financial pressures on the Board of Education and the Town. In a survey of 166 superintendents, 50 percent of the districts are currently running deficits as a result of budget cuts imposed by the State government.

Mr. Huot distributed projection #8, dated March 5, and projection #9, dated March 19. The current projection shows funds have been picked up in the salary account, based on vacancies that have not been filled. In benefits, last month there was a transfer of $300,000 from the Health and Hospitalization to the Private Tuition account (line 270 to 563). Each category is remaining fairly stable. Since about 82 percent of the budget is salary and benefits, that is where any money will be picked up to cover the negative balance. Since early March, three things are good news: receiving revenue for Medicare reimbursement with a projection of picking up $95,000; receiving $125,000 from Board of Education Services for the Blind; and the Town sold off some Anthem shares to pick up $150,000. He believes that the Board can break even by the end of the fiscal year, assuming there is no continuation of huge amounts of special education bills received. Additionally, the work the principals have been doing in terms of holding back expenses is starting to show dividends. However, if principals state they need items for the classroom, funds are released for purchases. He commented that the brakes have been applied to a lot of spending this year, which will make it hard to budget for the next year. Accounts that have not been expended will be viewed as being sufficient, or even too large, when creating the next year's budget.

Mr. Beitman stated that there are 166 school districts in Connecticut. Manchester is the fifteenth largest district, which just under 8,000 students. That number is larger than ten communities in the State. It is a very large enterprise educating 8,000 students in 15 buildings. Manchester cannot be expected to live within its budgets when funded and un-funded cuts occur at the levels seen this year.

Mr. Robinson asked if Board members had any questions.

Mrs. Lok agreed with Mr. Huot's comments regarding accounts that have not been expended, based on the spending freeze, being viewed as sufficient or too large. She believes it is important that this point is made and is in the record for reference purposes. She also confirmed that the Board is not doing without the necessary supplies needed in the schools.

Mr. Huot confirmed this, but stated that the district is not doing what it stated it was going to do at the start of the budget. There are basic things needed to run a classroom. The whole community is affected by the budget, and if the budget is exceeded, it will affect the Town's budget.

Mr. Edwards stated that he is concerned about what they are not getting as a result of the spending freeze. He asked Mr. Huot to poll the building principals to generate a list of items that are not being done. He stated that this is not the first year the budgets have been frozen, so supplies that may have been plentiful are reaching a point of being limited or depleted.

2. Preliminary Draft Reduction for the 2004-05 Budget
Mr. Beitman reviewed the Superintendent's recommended budget process. Budget planning is begun on July 1 in preparation for the next school year on July 1. This year, they were asked to prepare a budget that reflected a three percent growth for the Board of Education, less health care and less debt service, which they did. He trimmed the Superintendent's recommended budget by 21.4 positions, and eliminated several millions of other services and items in order to get to a budget projection of three percent. With health care and debt service, the Superintendent's recommended budget was 5.22 percent. Four days before the Board of Education adopted its own budget to send to the General Manager, they received notice from the Commissioner of Education that the Excess Cost grant, which had already been capped and reduced, would be capped to almost 50 percent next year. This meant an additional $500,000 in expenses. Therefore, when the Board of Education adopted the budget, they added $500,000 to the Superintendent's recommended budget, which would cover newfound expenses for the Excess Cost grant. He reviewed the 21.4 positions eliminated under this proposal: 4.4 certified staff and 17 non-certified staff. This was in addition to the 28 positions that were eliminated in last year's budget. The General Manager's recommended cut to the Superintendent's and Board of Education's recommended budget is $1.8M. He has developed $628,000 in program cuts and an additional $1,172.170 in staff cuts. He reviewed all of the program cuts and commented that in some cases they represent the total elimination of a program or service, and in other cases they are a partial reduction in services. (See the attached spreadsheet for exact budget cuts.) He reviewed two particular cuts: Health Care Migration and MRA Reorganization. At the last joint meeting, they asked the financial consultants to generate savings as quickly as possible regarding the health care migration. Regardless of which health care plan is in place, health care migration represents the migration of employees from expensive health care plans to less expensive health care plans. Generally the migration saves the employee some cost share and saves the employer some expense. Health care migration will occur for the Board of Education near the time the budget is adopted in June during Open Enrollment. Manchester Regional Academy is a specialize facility which contains special needs children. Through the assistance of Jen Tait of Pupil Support Services and her staff, and Mr. Jack Peak, Principal of MRA, selected a strategic course of action to bring back to the district certain students who are currently in costly out-of-district placements. This would include 7-8 children, which would generate considerable savings to the school district. Out-of-district placements costs a school district between $10,000 - $100,000, depending upon the need of the child. The Excess Cost grant reimburses the Town for those costs that are in excess of five-times the per pupil costs, or approximately $45,000 per child. The State capped this grant. Manchester cannot stop providing services to children regardless if the State will not fund it. The MRA reorganization will increase class size, but carefully done, will not have a dramatic impact. However, MRA will not receive more staff or services because of the additional students. He also explained that the children who live in Squire Village are in walking distance to Verplanck School. However, it is a very dangerous intersection. This budget recommends a cut of $33,000 for this school bus; however, without the addition of crossing guards from the Town budget, the bus cannot be cut. He will be meeting with the Police Chief to discuss this proposal. Regarding magnet school tuition, the Governor's proposal includes removing a supplemental grant that CREC receives and passes on to districts. Therefore, he recommends a $6,000 cut for new enrollments in magnet schools. He is also recommending a $20,000 cut to Policy 3510, which is a policy to commit funds to a fund to support the repair and maintenance of the schools. Over $25M will have been invested in the past four years in Manchester Public Schools, and in large part due to Policy 3510. The $20,000 cut which is listed for discussion purposes only, is to bring the 2004-05 budget back to the 2003-04 level. The caution is that this can be done once, but if it is done on a regular basis, the steady stream of funds is jeopardized to maintain buildings and programs. All of the program and additional staff cuts are recommendations only, and are a result of a 4-5 hour meeting with the building principals. Every item on the list was discussed, debated, argued over and ultimately put on the list by consensus. Class size was the single most important factor in the school budget. In additional staff cuts, 19.9 certified staff and 15.5 non-certified staff are recommended to be cut, for a total of 56.8 positions to be cut. Based upon projections of the financial analysts, they believe there is approximately $600,000 of additional savings in the Board of Education budget. Because the budget process is started 18 months before it is expended, there are often savings and liabilities that are not known. Included in the $600,000 of savings are funds generated from the sell-off of Anthem stock (demutualization). There is also some savings from the CIGNA plan as opposed to the Anthem plan, as well as some savings in the over 65 wraparound plan amounting of $175,000 of savings. Assuming that the savings holds true, certain programs and positions could be reinstated. These are all discussion points at this time.

Mr. Robinson asked if Board members had questions or comments.

Mrs. Huyler asked the about the cost differential between Anthem and CIGNA plans. She feels that the benefits are a huge issue, which needs to be addressed.

Mr. Beitman stated that the increase is roughly $2M. They do not have the exact costs yet, but will have them within the next few weeks. After that, meetings are scheduled for all the employees so that they can learn what the actual cost share is.

Mrs. Huyler stated that is sounds like there is a lot of concern over which doctors are covered, and she asked if it would be explained on an individual basis, or as an overview that would be easily understood.

Mr. Beitman stated they asked representatives of CIGNA to prepare to meet with all of the bargaining units to explain all of the information and answer all questions. These meetings are being scheduled over the next few weeks. He commented that even when they worked with Anthem, the same kind of informational meetings are scheduled so that employees have the opportunity to ask questions before selecting a plan.

Mrs. Huyler asked with the demutualization of Anthem, would it mean that they would be fully eliminated.

Mr. Beitman stated the demutualization is very different than the health care provider. The demutualization occurred when Anthem moved from a mutual corporation to a stock company. When it did that, it provided stock in the company to certain municipalities based upon the products that were bought. To Manchester, it was about $800,000, and the Town Directors put it into an account to pay down health care costs over the next two to three years. As the stock is sold, the money becomes available. After 2004-05, there is no more stock to sell. By selling the stock now, they are lowering the cost of health care to the employees and to the Town.

Mr. Edwards asked if the budget would be about $675,000 of potential add backs.

Mr. Beitman stated there was about $600,000 of potential savings from health care related issues other than migration. If staff are added back, unemployment is reduced to $50,000. The MRA piece totals about $125,000, for a total reduction of $775,000.

Mr. Edwards asked if any of the savings were due to migration of less expensive plans.

Mr. Beitman stated that this figure did not include migration.

Mr. Edwards confirmed that $600,000 is the savings derived by moving from Anthem to CIGNA.

Mr. Beitman stated that only a portion of that amount represents the move.

Mr. Edwards asked how much represents the move.

Mr. Beitman stated that only about $175,000 would be derived from the move. The rest comes from different areas of health care.

Mr. Edwards stated that the demutualization money would be available even if the move was made to CIGNA. He asked for the amount of savings from moving from Anthem to CIGNA.

Mr. Beitman stated that he could provide the figure.

Mr. Edwards asked if the number would be inclusive or exclusive of the run out costs generated by Anthem.

Mr. Beitman stated that it would include runoff costs. He commented that there is a ramp down and ramp up cost each time you change carriers.

Mr. Edwards stated that in the past where there have been numbers for a teacher cut or staff cut, it was always his understanding that it was a benefit-loaded price. He asked if this was true of this budget.

Mr. Beitman stated that it is shown in several different ways. In non-certified staff, there are certain benefits that are not attributed to the staff's salary; therefore, the figure represents the person's salary. The benefits are segregated out. Generally, for the certified employees, the number represents the salary and a large percentage of the benefits.

Mr. Edwards stated that his concern when adding staff back is that although unemployment goes down, the benefit figure would go up. Therefore, depending on which positions are reinstated, there may be no benefit seen.

Mr. Beitman stated that there would be some savings; they just have not been identified at this time.

Mr. Edwards asked if the same was true for the unemployment number.

Mr. Beitman stated not necessarily because the unemployment benefit is calculated on a fixed number. Generally, certified employees are able to find employment while non-certified employee are not always able to find employment.

Mr. Edwards asked the Superintendent if he would be recommending what ought to remain on the cut list and what should be reinstated.

Mr. Beitman stated the Board has always asked for input. He commented that he would seek input from professional staff.

Mr. Huot stated that last year, 28 employees were on layoff, and estimated that they would need $300,000 to $325,000 of unemployment expense if people used all 26 weeks. To date, only $50,000 has been spent to date, and he projects it will only go to $75,000. He expects that through retirements, a lot of this expense will be absorbed.

Mr. Beitman stated they are now in the process of identifying specific salaries and benefits of staff that are on the list.

Mr. Huot commented that they are up to 20 retirements in certified staff. Therefore, while they may eliminate positions, they may not eliminate jobs because they will be absorbed through the retirement process.

Mrs. Lok asked if there was a meeting scheduled with the Board of Directors to discuss the migration on the newfound funds. She stated that one of her major concerns is if the health care migration does anything to help with the budget dilemma, or if it is a false hope while putting in on the backs of the employees.

Mr. Beitman stated that there are two choices: invite Mr. Huestis, Mr. Desmarais and Mr. May to come to the next scheduled meeting to answer questions; or schedule an interim meeting between now and the Board of Education meeting. However, the budget hearing dates of April 1 and April 7 have to be considered.

Mrs. Lok stated that her preference would be something scheduled as soon as possible. She is also concerned about non-renewal notices, as those teachers will look and find jobs elsewhere while the Town is analyzing numbers.

Mr. Beitman stated he would ask Attorney Libby to call the Town and see when they are available to coordinate a meeting. The meeting would be covered by the newspapers and taped for Cox Communications.

Mrs. Lok stated the idea of migration seemed worth exploring when she first heard it; but that they have to be very careful that it does not impact the employees.

Mr. Beitman cautioned the Board that the numbers that were shared at the first meeting might be far in excess of any general savings that might be generated by migration by any carrier.

Mrs. Lok recalled that the Board was in a similar situation a few years back, but were then offered a reduced rate by Anthem.

Mr. Huot stated that the Town do did some negotiations with Anthem for the reduction of their administration fee.

Mr. Beitman stated that the Town is self-insured; meaning that the Town pays the medical bills through the TOMMIF account, and the company that manages the plan is paid an administrative cost to manage the plan. That is where the savings was generated a few years ago. This is different than a premium plan.

Mrs. Lok also remembered that a few years ago, they used some of the TOMMIF funds and then were surprised with a rather hefty bill. She wanted to make sure that this did not happen again.

Mr. Beitman stated that pre-1999, the Board and Town's contributions over funded the TOMMIF account. The Town then allowed the Board of Education not to make certain payments and to use the funds within the school district for much needed repairs. With these reductions, it brought it to a fairly serious level. There have been no further reductions to the TOMMIF account.

Mrs. Holmes stated that when the Board was given a list of $500,000 worth of item before the recommended budget was approved, a consultant of $40,000 was included. She did not see it on the new draft and asked if it could be explained.

Mr. Beitman stated when the Town approved the $6+M to renovate Bowers and Waddell Elementary schools, one of the reasons the Town was supportive was because the Board tried hard to do some of the work in-house. There was an objection by the public that a lot of money was going to consultants and architects, and they would like to see if go towards the actual repair of the schools. A plan was then devised to fund a position in order not to pay a construction manager or outside consultants. That was estimated to be about $120,000. The General Manager asked if we would add $40,000 to the Board of Education budget, as did the Town, and the Bond Council said roughly $40,000 could come out of the bond to total $120,000. The question now is where the $40,000 should be put into the budget, on the BOE or BOD side.

Mrs. Holmes stated in regard to the reduction of Policy 3510 line, she asked about temporary classrooms. The Board has to pay the gross amount for the five-year class on each classroom, while the Town receives 65% state funding for these buildings, which they have not been adding back into their budget. They have been buying property with that money. She would like to urge them to allow the Board to budget the net of the two, which would amount to at least $200,000. She then would like to discuss absorbing the cost of some of the classrooms into Policy 3510.

Mr. Edwards asked when the insurance experts are brought in; he would be interested in a more detailed comparison of the CIGNA plan versus the Anthem plan. He stated they received letters and public comment that there are doctors not in the new plan, and he would like to know if there are changes to the pharmaceutical formula and whether certain drugs are covered or not. He would also like to know if people move from one category to another in terms of reimbursement rates.

Mr. Beitman stated that he would ask Attorney Libby to contact the Town for this information.

Mr. Rizzo found it significant that they reductions recommended are not the reductions of the Superintendent, but the reductions of the building administration. He stated that he appreciated this work. The reductions are across the board and not selected to frighten or manipulate people into coming out to speak. He feels that the budget is chipping away at programs that he feels makes Manchester School System one of the best in the State. He stated that nearly every single program that he worked to support and make happen is on the list. He feels that these reductions will be noticeable and everyone is going to lose. He commented that each year, the Board has been lucky to realize some sort of savings, which this year may be health care. He stated that each public comment addressed each issue on the budget cut list, and believes the problems need to be worked out in order to come together and find common ground. The last line of defense is the classroom teacher, or classroom sizes will increase. He is looking forward to getting more information, and commented that the increase the General Manager has given the Board is $2,706,168 over this current year's budget; $1,945,458 of that is the medical increase, which leaves little for the rest other than salary increases.

Mr. Robinson stated that some of the Board had a little relief with the newfound funds, but he believes it is not as firm as the press release led everyone to believe. It concerns him that the numbers appear to be firmer to the Town, rather than the Board.

Mr. Beitman stated that he would anticipate that the General Manager's budget will reflect a $1.8 reduction with a hope that over the next few weeks, that some compromise and resolutions can be achieved to reduce the $1.8M but at least $775,000 in additional money.

E. COMMITTEE REPORTS
1. Buildings and Sites Subcommittee
Mrs. O'Neill stated the committee met on March 2, and Mrs. Holmes, Mr. Edwards, Mr. Huot and she were present. They discussed the bus contract and had a survey of surrounding towns and their contracts. They discussed the air quality regulations Policy 3100 and are reviewing the administrative regulations. They have a draft of the Building Use policy, 1330, which is being circulated for revisions. They also discussed the Buckley School pick-up, that the PTA was presented with the proposal, and the Committee recommended that Mr. Huot go back to the Town to ask for a re-submittal.

F. COMMUNICATIONS
Mrs. O'Neill received a call this weekend from a parent registering a kindergarten student. There was no place to check off mixed race and it was really an issue, especially in our diverse community. The parent was told that they had to pick a race and it was very difficult to do that. She requested a revision of the form to be sensitive to people of mixed race.

Mrs. Lok received several communications by email over the weekend. One in particular was a reminder to Board of Education members that their role was to advocate for appropriate funding for public education in Manchester. This citizen caught the meeting between the BOD and BOE and the discussion of cuts. She agreed that this discussion has changed since she was on the Board. All of the advocates that come to speak in favor of public education are taxpayers.

Mrs. Holmes stated how much she enjoyed going to the MHS production of My Fair Lady. It was a wonderful group of actors, technicians and behind the scenes. She commented that it is a great venue for students to show their talents and they work very hard. She feels it would be a shame to lose this type of activity.

Mr. Robinson also attended My Fair Lady and commented that it was a wonderful production. He congratulated all those involved. He also attended the Cedar Street Station program at Washington School and enjoyed it very much. He recommends it to others to attend.

G. PUBLIC COMMENTS
1. Milt Perlman, 3 Sanford Road. He believes there were two items in which the Town received money, the bus contract and the cut to medical administration. He feels that by the comments made at the meeting, one would think that the school is being under funded and the taxpayers do not want to give a cent. He feels the truth is the median wages in this Town has come down, while people are receiving an increase in taxes from the State, and jobs are being eliminated. There is a general reduction in revenues, and he believes the taxpayers cannot make up for every penny that is being cut.

2. Sherry Luckstra (?), 145 Tanner Street. She has a niece and a nephew at Illing and a daughter at Cornerstone Christian School. She asked why is the Town taking money from the schools that comes in for the temporary buildings. It should be going back to the schools to educate children. She made a statement to the Illing Principal of why his hands are tied everyday when trying to run a school. She asked how many Board members have been through a day of classes at Illing. She stated that she went to the school and they are out of control. She feels teachers are taking so many sick days and children are left to watch movies because there is no one to teach them. She asked why substitute teachers with educations are put into classrooms if they are not going to educate the children while they are there. He feels that the students are disrespectful to the teachers. She feels that the Board should not focus on how much is being paid on insurance but on the teachers who should educate. She feels the teachers have handcuffs on so that they cannot educate children.

3. Tom Stringfellow, 183 Hillstown Road. He stated that he supported items 2 and 4 on the consent calendar dealing with the training of math teachers. He referenced a segment on Channel 3 news in student learning in science and math, ensuring hands-on experience that is relative to students' lives. He mentioned KAST (Kids are Scientists Too), which runs science fairs throughout the year. He asked that a report be given on social promotion and retention, and getting parents involved. For the budget, he hopes that paraprofessionals can be kept at the elementary schools, especially the librarians and media people. Regarding CIGNA health care, he believes it should be fair and that people will have access to physicians and health care costs are covered. He believes in maintaining the class size. He feels youth should be involved in the Study Circles. He recommended an article in the Courant, 3/21/04, Children Profit when Parents Talk About Money.

4. Stephanie Knybel, 38 Bobby Lane. She wanted to advocate for child safety, and feels the school bus for Squire Village should not be cut at all. A school bus can carry 32 children, and she cannot see a whole bus of students walking from Squire Village to Verplanck School. She likened it to Bennet students crossing Charter Oak Street to go to gym class. It is not feasible as it is a safety issue.

5. Barbara Stambo, co-President of Manchester Association of Educational Secretaries. She thanked the Board for listening to her presentation and reading her letter, and that it means a lot to her union and other unions. She feels a presentation is a wonderful idea; however, she cautioned the Board that the experts are also great salesmen. She urged the Board to listen to their real research, as South Windsor is a great example of CIGNA failure. It does throw the extra expense on the back of the employee along with layoffs. There are also some significant contracts issues that the Board should be aware of when changing plans, as well as some legal exposure. She urged public speaking at the presentation, as it is real life information as opposed to numbers on a page. The unions would not be so adamant if CIGNA were a good or equal plan.

H. ITEMS FOR FUTURE AGENDAS
Mrs. Hackett stated she would like to see a presentation on the residency investigation efforts; to include what the law permits the Board of Education to do to un-enroll students who have portrayed themselves as Manchester residents. She is not referring to DCF and special education placements.

MOTION: Edwards/Rizzo s.v. The Board of Education adjourns to Executive Session at 10:13 p.m.

Respectfully submitted,

Margaret Hackett, Secretary
Manchester Board of Education