The Otter Valley Unified Union School Board is preparing for a challenging budget season, with preliminary figures suggesting a possible 5.5% spending increase for the coming year if no changes are made. At its Oct. 20 meeting, board members discussed the spending decisions they expect to face and how to involve the community in making them.

Superintendent Rene Sanchez said declining student enrollment could make the budget particularly difficult for voters. Although overall spending would increase by approximately 5.5% under the preliminary projections, spending calculated on a per-pupil basis could rise by about 9.5%. The district is currently estimating a 3.4% decline in the pupil count used for education funding calculations, based on the average decline over the past two years, Finance Director Brenda Fleming said in a follow-up phone call. 

Fleming said the projected spending increase is driven primarily by salary and benefit costs, including increases required under existing employment contracts, along with estimated increases in vocational and prekindergarten tuition, and heating and diesel fuel expenses. Health insurance costs, however, are expected to decrease.

Board Chair Laurie Bertrand said the district would consider whether staffing could be reduced through retirements or other departures, but said she did not believe reducing administrative positions would solve the budget problem.

“Cutting administration is not going to be the answer,” she said, explaining that many of those positions are required by law or are necessary to support the schools.

Board members acknowledged that reducing spending will require difficult choices about staffing, programs, or services. They discussed holding a community forum Nov. 17 to hear priorities and concerns before making decisions about possible budget reductions.

Fleming emphasized the importance of gathering input before more reliable financial figures become available in December.

“Knowing what the goals of the community and the board are in November is really helpful,” she said, explaining that the information would help administrators develop budget recommendations that reflect those priorities.

The board expects to finalize its proposed budget in January, ahead of the March vote.

School district merger discussions get underway

The Board also heard updates related to Act 170, which requires school districts to study possible mergers as part of a statewide effort to reorganize public education with the goal of cutting costs.

The regional merger-study committee held its first meeting Oct. 22 at Barstow Memorial School. The committee includes representatives of OVUU and other districts in the region that have been assigned to explore potential consolidation.

Speaking at the Oct. 20 board meeting, Board Chair Laurie Bertrand, OVUHS’s representative in the merger discussions, said she expected the initial meeting to focus mainly on procedures and organizing the committee’s work. 

Board members also discussed the distinction between the district’s immediate budget challenges and possible future changes under Act 170. Any budget for a newly merged district would be developed by that district’s future governing board, not by the current OVUU board. 

Regional service group takes shape

Sanchez also reported progress by the Southwest Cooperative Educational Service Area (CESA), a regional organization established under Vermont’s education reform legislation to help school districts share services and resources. Districts are required by law to participate in a CESA, which must establish a fee structure to cover its operating costs.

The group has adopted bylaws and established a fee structure under which each member district would pay a base amount plus an additional fee based on student enrollment. Members agreed not to request funding from participating districts for fiscal year 2028, instead relying on $65,000 in previously allocated state start-up funding to help cover operating costs for both this school year and next. 

The CESA will initially focus on identifying the services and resources already available among its member districts in areas specified by Act 170, including special education, transportation, food service, business operations, and professional development. By sharing resources, districts may eventually be better able to fill positions that have been difficult to staff individually, including bus drivers, paraeducators, and world language teachers.

Board members discussed the importance of measuring the CESA’s results, including whether it delivers cost savings to taxpayers. Kevin Thornton noted that some residents are skeptical that the organization will save money rather than simply add another layer of bureaucracy. He said he would like the district to be able to demonstrate measurable results to voters.

Others pointed out that improved access to services and educational opportunities could also be a measure of the CESA’s success, even if those improvements don’t necessarily reduce overall spending. Sanchez said meaningful savings might not emerge until fiscal year 2029 or 2030.

Board plans more opportunities for public input

Throughout the meeting, board members emphasized the importance of keeping residents informed and involved as both the budget process and the school merger discussions move forward.

“We have the unfortunate reputation now of springing surprises on voters, which I don’t think is fair to us, but it’s certainly the perception people get,” Thornton said. 

Members discussed providing regular summaries of what has been decided, what remains under consideration, and what residents can expect next. The board agreed to set aside time at each meeting for Act 170 updates and discussion.

For now, the board’s most immediate concern is the upcoming budget. As Thornton put it, “It’s not gonna be, you know, unicorns and roses this year.”

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