Updating the numbers (DATE CORRECTED)

The City Manager's March 3 budget update to the City Council doesn't give any numbers you haven't seen here before (I think), but I'll pull out the salient paragraphs on education here with added emphasis and comments (because I realize that most of you are not going to read all five pages!). As always, the Arial font is quoted; the serifs are mine:

Our preliminary analysis of the proposed FY2010 State Budget reveals a net reduction of the State's Local Aid and other revenue support to the City (all non-Worcester Public Schools) of $17.4 million. This total is comprised of a Local Aid reduction of $14.8 million as well as significant reductions in the State's line-items for Quinn Bill reimbursements, community policing and veteran's and elderly exemption payments that would have obvious detrimental effects on our revenues...

The manager has mentioned in previous memos that the City is also experiencing declining city revenues and there's ongoing concern about grant funding.

It is important to note that there is a similar FY2009 City budget effect when the State's education formula is recalculated due to the mid-year cuts in Local Aid to the City of $5 million. The result would be $500,000 net less for the WPS through June 30, 2009. Much like the Governor's recommendations, it is clear this City Council will want to mitigate any mid-year disruptions to our classrooms and therefore will stand firm in maintaining our "pre 9-C" levels of funding to the WPS through June 30, 2009. I concur, without question, and I will proceed accordingly with all projections and recommended actions to balance the FY2009 Budget...

In straight language, this is "yes, we could cut our funding for education this year, as our responsibilities under the foundation funding formula go down when state aid go down, BUT we aren't going to do that, even though it means we have to cut an additional $500,000 from the rest of this year's budget to do so." And if you haven't written a note to thank the Manager and the Council for this one, you should! We are all better not facing mid-year teacher layoffs. What a nightmare.

I await the projections from the Worcester Public Schools for FY2010. The Governor's FY2010 Budget Recommendation holds the State's Chapter 70 Local Aid for Education "harmless," in essence level funding WPS at the State's FY2009 funding levels. I believe it was universally received as a generous proposal to level fund the State's Chapter 70 Education Aid in these trying fiscal times. However, it is safe to say that the State's level funding of almost 75% of the WPS annual budget (Chapter 70 Local Aid for Education) in the face of increasing fixed costs for salaries and employee health care, as well as required additional pension deposits, adjustments due to City-side State Aid cuts (ts effect on City contributions to WPS due to the State's formula, etc.) will likely have a negative impact on WPS's FY2010 outlook. However, it is also important to note that President Barack Obama, Capitol Hill leadership, and the Governor have referenced additional operating funding for public education as part of the Federal Stimulus Legislation....I will seek to secure more detailed information for the City Council regarding WPS's FY2010 projections in week ahead.

Beyond the referencing to federal funding, there are three important points here:

1. Level-funding education (heck, level-funding just about anything) doesn't mean that it comes out even. Contracts have automatic increases. Health insurance costs rise. Fuel costs go up. Even a ream of paper is going to run you more this year than last. Just because we get the same amount from Boston doesn't mean we are free and clear.
2. Just like in FY09, when state aid goes down, the City's responsibilities under the foundation funding formula go down. The Manager has put it in a parenthetical here, but this is one to watch. The City doesn't have to give the schools as much money this year, because the State isn't giving the City as much money.
3. The Manager opens and closes with it intentionally, I am sure: he wants numbers from the school administration. They're trying to wait for April...he's going to be bugging them for it NOW.