Preliminary budget estimates: FY14

You can find this presentation here. Posting as we go...
Reminder from the superintendent that our budget is based on House 1
Governor's education platform and state of the state message
"not a draft budget but a preliminary budget discussion"
How to structure a priority session for the school committee
Allen: budget drivers
2/3 of our budget from the state
recent 9C cuts and other cuts to education, though none that impact our current budget
the state has always fully funded charter reimbursement
currently the circuit breaker is at 70%, charter school reimbursement is at 83%
questions around the kindergarten grant: funds about 1/2 of our kindergarten IAs
GOVERNOR'S BUDGET WILL BE RELEASED JAN. 23

MassBudget projects a $1.2 billion deficit
"some warning signs for us to look at"
DESE reconfiguring how communities get money, all of which make it look like Worcester
"Have not factored any change in kindergarten grant"...could mean an increase for us
Governor's FY14 education budget preview, none of which are included in our assumptions (exception: fully funding Ch. 70)
lifting cap on number of preschool students (currently count only 2x the times of normally developing students versus special education students...I think...)
not what we've been suggesting which is including pre-K in Chapter 70 aid
increases assumed cost of average out-of-cost sped placements (as sped costs are ESTIMATES, not actual): we don't have a number on that
$25/pupil minimum aid NOT APPLICABLE TO WORCESTER
fully funding target aid NOT APPLICABLE TO WORCESTER

Federal:
even at level funding, we have a gap of $1 million due to increases (contractual, health insurance)
up to $3 million cuts in federal entitlement grants
decline of about 12% in federal grants since FY04
How we spend our grants (largely on positions): coaches, IAs, tutors

City Contribution:
will be in Governor's projection: reminder here that transportation increases have to be funded but are not included in Net School Spending

up 409 students since last year
reminder not to read much into preschool number as that number increases over time (as kids turn 3)
all other grades up; not driven by K, but by middle school
ELL grows by 13.8% (970 students)
Low income up 663 students (up 3.5%): now 74% free and reduced lunch level
We're now a bigger district than when we closed eight schools

Inflation factor of 1.55% (it was 3.65%): that works out to 4.5 million dollars over what it would be if it were the same as last year

projected budget of $312,451,952
which is an increase of $13.5 million from this year
with $12.5 for WPS ($1m to charter and choice)

salaries increase $2.5 million
health insurance up 8% would be $3.2 million (we'll see...you'll remember that this was off last year)
tuition $2.5 million (no longer a tuition freeze with the collaborative; this also includes money for the Gateway to College program with QCC)
transportation $500,000
retirement assessment $800,000
other cost centers $500,000

...which is $10 million increase

other areas:
raises are $2.1 million for every 1%
OPEB: city wants $3 million
additional 6 buses for sped $500,000
class size in elementary additional 21 teachers: $1.6m
class size in middle school: 15 teachers: $1.1m
MassCore: $1.1m
leasing computers $1.1m
special ed 30 positions $1.7m
ELL 16 positions $1m
MassCore textbooks: $500,000
6 nurses (3 more for larger schools; fulltime nurses for the alternative programs): $300,000
6 school adjustment counselors $500,000
summer school funding (as we're losing funding) $500,000

...which is about $15 million in need with $2.5 million to spend
DOES not include:
school safety and playground equipment
rental of space due to class size (not talking about opening of new schools; adding space close by)
Exam/IB planning year
PCB next steps (approx. $1m FY13)

if no changes in the number of elementary teachers:
334 classes of under 23 (57%)
208 classes of 23-6 (36%)
31 classes of 27-30 (6%)
6 classes of 30 or more (ALL IN ONE SCHOOL) (1%)

if we add the 21 teachers, all classes below 26 students

$27 million of "school of choice spending" 9% over foundation

chart of where families go who choose to leave Worcester for another district under school choice:
Berlin/Boylston $42.5% over foundation
West Boylston $31.6% over foundation
Auburn 21% over foundation
Wachusett 11.7% over foundation
Leicester 2.5% over foundation

Can't just carry forward FY13 into FY14: changes that need to occur
not a recommendation or a presentation

Governor's budget on January 23
House budget in April
Senate budget in May
Budget to Worcester School Committee on May 3