Allen presentation (Updating as we go)

"tonight's presentation is intended to focus on the budget document"
nuts and bolts have been discussed numerous times before tonight
"some of the budget drivers that we've faced in preparing the FY14 budget" will be presented tonight
Posting as we go

City Manager's recommended level of funding is what the budget is based on
4.2% increase over the general fund from this year
"we are generating our own revenue because of enrollment and the state's inflation factor"
projected enrollment increasing; has been increasing since 2007
over where we were when we closed eight schools; going forward, projected enrollments from MSBA and NESDEC: showing we may be nearly at 26,000 by 2017
"space may be an issue over the next several years"
growth predominately at elementary level
"not only are the number of students changing...who they are is changing as well"
increasing ELL students: not only changes among schools, but student composition changes

Budget drivers for FY14
expenditures: contractual increases, MassCore (2ndry schools), technology, transportation (being done in house for four of those; funds that normally would go to computers), special education, Other Post-Employment Benefits (included in neither WPS or CoW budgets for FY14)
revenue: sequestration, state funds (charter reimbursement), local contribution
Governor, House, and Senate all have fully funded Chapter 70 budget (as they have since 1993)
House underfunds charter reimbursement for WPS $1.6 million
State kindergarten grant may provide additional funding for us

Sequestration: 8% across the board cuts to our federal grants
130 fewer slots for Head Start
some question about child nutrition and JROTC (differing opinions on if they'll be hit)

federal and state grants being decreased by $2.7 million or 7.8%

most of increase in revenue coming from state aid
city increase driven by Municipal Growth Factor (that's how the state calculates what the city can afford)
most of increase in expenditure is going into instruction, then fixed charges (benefits and such), then transportation (largely being driven by special ed)

61% comes from state; 27% from city
64% of spending is salaries, 17% benefits

City meeting required spending: Worcester has been under by:

FY11 $295,668

FY12 $1.3M

FY13 $862,531

FY14 $427,918

"I think the benefit of the discussion we've had with the City Council is that we all agree on these numbers"

"Mr. Chair, I submit to you: we have a revenue problem"

short $4.7 million if you add shorting of city, state, and federal underfunding

a budget including that would include 19 elementary teachers, kindergarten IAs in every class, restore all tutors, and still have additional $1.9 M left

all increasing positions are going to teachers and IAs (and small other adjustments, like counselors)

Of $18.58 / $1000 of tax rate in Worcester, $5.53 goes to WPS

Funds that are generated for the city:

$3.2 million in Medicaid (goes into city general fund)

$475,000 McKinney-Vento transportation (goes into the city general funds)

does not include investment income generated by WPS revenue

for FY13, district average is 21.2 

65% of classes less than 23

3 classes are greater than 30

as always these numbers are PER TEACHER, not per adult

for FY14, district average at 22.1

53% less than 23

none at 30 or more

estimated 19 teachers would be needed to eliminate all classes above 26, which would cost $1.3 million Note that this could be wiped out by proper funding of charter reimbursement

middle school staffing considers school enrollment, contractual load, add at WEMS due to addition of 6th grade
high school considers enrollment, course selection, contractual load, consideration given to type of class, as well

High school adds 3 science, 5 language, 2 business and tech, 2 art, 1 family and consumer science
High school reduces 2 English, 2 OA, 1 music, 2 vo-tech
no loss of course offerings

all K IAs maintained; rental of space for Chandler El; expands bilingual ed at Norrback and Roosevelt

replace all district computers (7500); school choice funds for more tech; textbook replacement; 2 IT positions; no fees for athletics, transportation, or other programs

Special ed: $2 million savings to bring more autistic students back into the district; increases (net) number of IAs (despite loss of IDEA funding under sequestration)
3 nurses, 1 school adjustment counselor, other additions

$1M savings in special ed; early childhood restructuring; $75,000 saved in postage

reduces 32 tutor positions
loss of after school/summer programs in 9 schools
loss of 130 spots in Head Start
in FY15 we will end Race to the Top and the first two Level 4 school grants

1.5% of WPS budget is on administrative spending
Worcester spends $389.69 per pupil on administration; state average is $471
within that number is how much the city charges us for their administration; more than is spent directly by WPS on administration
city spends $4.9 million; WPS spends $4.2 million (and note: we cannot touch that in any way)
in no other city does the municipality spend more on school spending than the school district does
The city passed us in FY10
$1.8M for city treasurer
$670,00 for city budget office
$572,370 for auditing
$235,345 for purchasing
for a total of $3.3 M
...while WPS spends $550K on our finance department, in total
"perhaps there is also a revenue issue here" (to an appreciative rumble of laughter from the crowd)

Senate Ways and Means budget: increase in chapter 70 $239,183 HOWEVER city aid was reduced, which means that the city local contribution will go down by that amount; it's an offset
charter reimbursement up by $218,506

What would we do with additional funds? Teachers, tutors, kindergarten IAs, and instructional supplies
"that's what we continue to do; no secret"