FY13 budget presentation

Governor releases budget next Wednesday
continue with zero based budget approach
"not going to step away from our process as we've started to do this work"
posting as we go

communication plan: meeting one on one with principals, talking to teachers, community groups,
Allen: different than earlier presentations: lots of research that has been done
2000-2007: Ch. 70 aid rose by $700m, but spending on employee benefits rose by $1 billion (statewide)
desipite an almost $5b increase between 1997-2006, virtually no increase in number of teachers
21% below foundation in 1993
rose within 3% in 2000
down 16% under foundation
notes from the MassBudget research
weakening job picture slowing revenue
FY13 revenue estimate: 6.9% increase over FY12
MassBudget projecting a $1B shortfall
hoping may get some indication even tomorrow when Patrick presents to Mass Municipal Association

State Budget: Ch. 70 (70% of our general fund budget)
circuit breaker set at 65% (should be 75%)
charter school reimbursement
kindergarten grant

revenue
enrollment increase (from THIS year) of 219 students
inflation increase of 3.65%
=about an $11.4 million increase in foundation budget for WPS
always hoping to hear that Governor intends to fully fund Ch.70
student enrollment: 1300 increase over past three years
nearly at Fy06 year
running into capacity issues at elementary level

expenses
$4.8m increase in salaries
health insurance increase of 7% (estimate) which is $3m
tuition increase of $1m
transportation of .8m (does not assume additional service; this is just contractual and current)
retirement assessment $.4m

cost increases of about $10m

ABOUT BREAK EVEN: first time in years without a significant structural deficit!

federal grants have been going down: more positions are in grants
(FY12 is $22.7m in grants)
Three grants ending this year: Teaching in Urban History, APIP, 9 of 17 schools that have 21st century programs are losing their funding

slide on where the grants go: very position heavy in allocation

zero-based budgeting: thorough review
long-term planning for student achievement
need to reflect changes beyond revenue/expense projections

Worcester is among the top housing markets in the country and is the 2nd happiest city to work in

Areas of need with expenses needed for them: total of $27 m
"no expectation that we can get there in short order, but needed in long term planning"

MSBA project submitted: largest capital investment list submitted by Worcester (and ever submitted by one community)

Focused on students