It's Groundhog Day!

And for those wondering about the sigh of relief from some in the audience when they heard Superintendent Boone's answer to the question from Councilor Lukes, we bring you this flashback from May 2008.

with apologies to Councilor Germain, whose name I only recently started spelling correctly

Misc salaries

Including a grab bag:
Adult ed
special ed summer schools
Clark Masters program (Mr. O'Connell would like to see us re-impliment this)
cheerleader advisers ($12,000)
Community schools: level service, level funding
Future teachers' academy
Police service
Translators ($100,000)

Mr. O'Connell wants to spend more on the future teachers' academy, too.
Mr. Bogigian on community schools: how many did we have in FY08? There were six more (we had 10); it was $258,000 then. Now we are spending a bit over $200,000; he wants to know how this money works out. Do we, he asks, have a community school run by 21st Century grant?

Also, this from the translators section:
"Additional language translations will be required for Office of Civil Rights compliance"
We are currently out of compliance under civil rights laws, and we are not budgeting enough to get into compliance. It seems we probably have underbudgeted here to keep us in legal compliance.

Much conversation going on about community schools. The Mayor ties this to pools being open and having things for the children to do.

Where is there money left?

The attachment to item 6.30 A on tonight's City Council agenda gives a list of the money that hasn't been spent yet this year. (There is, before you get too excited, 15% of the year left.)

It makes for interesting reading. Councilor Rushton is trying to figure out where that money is, and how much it is (he's focusing here on the snow removal budget, which was going to carry a deficit of almost $3 million over to next year; they are now going to be able to bring it down to $1 million. Carrying a deficit on snow removal is allowed under state law, and it sounds like we do it about half the time).

$12 million is the health insurance money (both city and school sides); you'll remember that holiday? It hasn't come out yet.

All of this bears on schools, as extra money is up for grabs.

"How does free cash look?" asks the mayor. "Free cash" is exactly what it sounds like.

"Not so good," answers the City Auditor, though it sounds like it's better than it was. The mayor is asking for a report by the end of the month on how much it is.

Reporting back on saving money

The attachment to item 7.38A on the current City Council agenda makes for some interesting reading. This is the report back to Councilor Rushton's request for five areas of cost savings in the School Department.
Their five areas?

1. Health insurance. Just like the city, the School Department is saving money on health insurance, partially due to Section 18, partially due to renegotiations. (Incidentally, am I the only one surprised that the School Department negotiates with 13 separate collective bargaining units?)
2. School closings. This would be the eight schools closed over the past six years.
3. Restructuring School Nutrition programs. This appears largely to be making full-time positions part-time.
4. Utilities. The School Department is part of a natural gas purchasing collaborative, has worked on its electricity purchases, replaced inefficient lighting, and (here's a big one!) is working to convert South High from electric heat to natural gas.
5. Recycling. Saving almost $100,000 a year.
6. Transportation. This appears to involve the hiring of bus monitors.
7. Postage. WPS is still paying $0.37 a piece!

(You'll note that they've listed more than five areas. They ask for five, you give them seven!)

The memo goes on to list the areas of increased revenue: Chapter 70 aid from the state, charter school funding formula change, Medicaid reimbursement from the federal government (which right now goes back into the City's general fund; the schools want it back!), E-rate funding, Microsoft settlement (tech funding!), and grant awards.

The summary?
Reforms made to date have resulted in $11.3 million in cost savings and avoidance, as well as $14.2 million in revenue generated to the budget of the WPS or the City of Worcester. In addition, the WPS have received $10.2 million in grant funding in FY09. This amount equals $38.7 million in annual cost savings or revenue increases.
(the bold is in the original)

We'll see if anyone has anything to say on this tonight!

WPS plans on the budget: FY08 health insurance savings

Because $2.4 million of the money in the FY09 budget is one-time use money (it's the savings from the health insurance tax holiday), the School Administration will not use it to save positions.

However, class sizes continue to be a priority for the administration. To that end, they are saving $900,000 of those funds to address class size in September of 2008. Should class sizes be high (currently, the forecast is 29 classrooms in gr. 1-6 of 27 to 29 students), they will assign literacy tutors to assist in the classroom and bring down ratios. This also means that those are not full time positions, avaliable to be cut in 2010.

The administration plans to use the remainder of the $2.4 million to fund long-overdue textbook purchases.

STOP THE PRESSES!

The numbers have changed!

$2.2 million dollars have been freed up THIS YEAR for (the suggestion of the City Manager) schools supplies!

NOTE: This is a ONE TIME savings!

Where did the money come from?
Basically, reduced health insurance usage. The City consequently is running a surplus in its Health Care Trust Fund. That money can ONLY be used for health care, so the City Manager is implimenting a three week premium holiday in June 2008. It will save the Worcester Public Schools $2.2 million dollars in health care premiums (not to mention it's employees an average of $125 a week).

This is a ONE TIME savings, and it also has nothing to do with next year.