While the tuition has been confirmed by DESE, the state has not yet approved its budget. Lynne shared this as a caution though she and Rachel feel confident. The tuition DESE has projected is higher than what we budgeted. Additionally, the team has been able to get grants since July 1 which are offsetting operational costs. Furthermore, the enrollment is stronger than assumed. Thus, we have a surplus already. We will move the large majority of entitlement grants and ESSA grant into FY22 when we expect to see the negative impact of the pandemic. At this point, we are expecting a year end surplus of approximately $300k. We will be managing the grants and budget very closely. In sum, SNP is healthy at end of Q1 and all detailed information is in the reports. Disparity between fringe benefits (25%) and salaries (18%). One reason is that salaries of new hires are less than assumed. The accrual for summer payroll to teachers is only 10% recognized right now so these percentages will balance out as we move through the year. 

Lynne presented 10 year projections along with a narrative regarding the major assumptions and methodology for developing the projections.  Tuition Revenue conservatively increased no more than 3% in any given year, government grants level funded, and increased private funding during the first few years of the high school expansion.  Expenses conservatively presented that align with historical spending by Veritas and industry standard rates for the expected high school costs.  Lynne and Rachel spent time discussing the potential high school facility costs and the impact of submitted proposals by property development companies.  The Finance Committee members asked questions about the projections in many areas which were discussed in depth with Lynne and Rachel.  Denise and the other members were confident by the end of the discussion to present the projections to the full Board at the next Board meeting to support a decision to move forward with a high school facility site.

Time did not allow for discussion so this item will be moved to the November committee meeting.