liveblogging from the Levi Lincoln Room

I don't know what that does for broadcasting

We've got the School Committe and the City Council all scrambled up together in quite a presentation of unity in the Levi Lincoln room (mysteriously overheated).

We're hearing first from City Manager O'Brien and then from Superintendent Boone.
keep in mind: we are in FY10 now

FY10 : Pension Liabilites one year reprieve
Local option taxes
$2 million decifit as of August 2009
Then the Quinn Bill got cut further ($400,000)
Plus we're projecting a loss of $800,000 of less revenue (interest income, trash bages, fees and permits all are down)
Looking at $3,200,000 then for FY10

FY11: further state aid cuts
valuations are expected to continue to decline
new construction growth is projected to continue to decline (FY07=$4.5 mil, FY10=$2.5 mil, FY11=$1.5 mil)

Local receipts adjusted downward another $800,000 in total
Fy11 projected increase of $1 million

Obligations for next year: $255 million for WPS, $24 million for charter schools, $104 million for fixed costs, $3 million for snow removal
To do everything we have left we have $105 million, but it's going to cost $115 million, leaving a deficit for next year of $10 million
HOWEVER
unemployment claims are down
and we have a hiring freeze of 10 positions
each of those is half a million, giving us $1 million back

$2,200,000 budget deficit for FY10, then
there also is still $1 million cushion for possible future 9c cuts
"Must plan for the worst and hope for the best"

Assuming state aid is level funded, that there is no snow carryover from FY10, and a 0% wage increase for all unsettled contracts

$10 million is A MINIMUM projected deficit

Possible solutions: airport transfer to MassPort of $1.5 mil
pension schedule extension $3.1 million
early retirement $2 million (up to 100 positions and only filling 20)
closure of telecom loophole $1.5 million

Lots of working with the Legislature on things

"Partnership with WPS is key to our city's future...through difficult times and the better days ahead" (capts deleted)

Partnership:

• preserved and exceeded minimum education funding
• $2.1 million in health surplus for funding above minimum ("in the absence of school-side collective bargaining reforms")
• stabilized funding after 9C cuts
• reforms--health and pensions savings--allow for funds to be redirected tot he classroom