worcester public schools fy2009 updated budget projections april 28, 2008

WORCESTER PUBLIC WORCESTER PUBLIC SCHOOLSSCHOOLS

FY2009 Updated Budget ProjectionsFY2009 Updated Budget Projections

April 28, 2008April 28, 2008

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6 Years of Budget Deficits and Reductions

Totaling $58.1 million

Worcester Public SchoolsWorcester Public SchoolsFY02-08 Budget HistoryFY02-08 Budget History






Actual Annual Budget Deficits

Year

General Fund Budget Needed

General Fund Actual Budget

Budget Deficit

FY03 $235,800,000 $224,454,032 $11,345,968

FY04 $237,507,032 $228,861,500 $8,645,532

FY05 $242,361,500 $236,557,443 $5,804,057

FY06 $249,624,443 $244,361,728 $5,262,715

FY07 $265,428,363 $259,159,595 $6,268,768

FY08 $250,667,452 $248,009,032 $2,658,420

General Fund Reductions: $39,985,460

Federal And State Grant Reductions: $18,162,831

TOTAL BUDGET REDUCTIONS: $58,148,291







Revenue Losses: $ m

State Aid (Career Pathways) $8.80

State Grant Funds $8.90

Federal Grant Funds $9.30

Enrollment Changes $9.90

Total Revenue Loss $36.90

Cost Increases Greater than Inflation

Health Insurance $16.10

Retirement Assessments $2.00

Special Education Tuition $2.10

Building Utilities $1.00

Total Cost Increases > Inflation $21.20

Total Revenue Loss & Cost Increases: $58.10

Worcester Public SchoolsWorcester Public SchoolsReasons for FY02-FY08 DeficitsReasons for FY02-FY08 Deficits






Change in Budget Spending FY02 to FY08

Budget Category FY02 FY08 $ Change % Change

Employee Salaries $146,661,084 $158,059,635 $11,398,551 7.8%

Health Insurance $19,140,964 $39,258,096 $20,117,132 105.1%

Special Education Tuition $7,206,250 $13,109,662 $5,903,412 81.9%

Retirement Assessment $6,820,169 $10,338,138 $3,517,969 51.6%

Student Transportation $6,436,166 $8,979,943 $2,543,777 39.5%

Building Utilities $5,448,949 $7,678,216 $2,229,267 40.9%

Instructional Supplies & Materials $4,322,990 $2,018,615 -$2,304,375 -53.3%

Building Maintenance $3,339,200 $2,453,948 -$885,252 -26.5%

All Other OM Accounts $7,712,007 $5,655,306 -$2,056,701 -26.7%

Charter & School Choice Tuition $7,913,300 $20,653,914 $12,740,614 161.0%

Total Budget $215,001,079 $268,205,473 $34,686,195 16.1%







Worcester Public SchoolsWorcester Public SchoolsFY94-FY09 BudgetFY94-FY09 Budget

62% 63% 65% 65% 65% 65% 64% 64% 62%59% 56% 55% 52% 51% 51%

25% 24% 22% 22% 21% 21% 22% 22% 23%28%

32% 33% 35% 36% 36% 36%

13% 13% 14% 14% 14% 14% 14% 14% 14% 13% 12% 13% 13% 13% 13% 13%

51%

0%

10%

20%

30%

40%

50%

60%

70%

80%

FY94FY95

FY96FY97

FY98FY99

FY00FY01

FY02FY03

FY04FY05

FY06FY07

FY08

FY09 A

pr

Direct Instructional Costs Fixed Costs All Other Costs

Instructional / Fixed Costs Spending

WPS Students Show Progress

MCAS Scores Improve in ELA and Math: More WPS Students are Advanced/ProficientMore Students taking more rigorous classes Competitive Colleges Continue to Accept WPS Graduates

However, with adequate funding, we could have even better results.






Change in Funded PositionsChange in Funded PositionsCity Funded Positions FY02 FY08 Change % ChangeDAB Administrators 25 18 -7 -28%Bldg. Administrators 82 78 -4 -5%Teachers 2,132 1,826 -306 -14%Inst. Assistants 235 126 -109 -46%Bus Monitors 49 26 -23 -47%Crossing Guards 118 110 -8 -7%Custodians 173 152 -21 -12%School Plant 46 42 -4 -9%Admin. Clerical 85 70 -15 -18%School Clerical 93 80 -13 -14%Non-Inst Support 64 50 -14 -22%Totals (City Budget) 3,102 2,578 -524 -17%Grant Funded Positions 676 520 -156 -23%TOTAL POSITIONS 3,778 3,098 -680 -18%







FY04Adams Street East Side

Preparatory SchoolGranite Street School

Greendale SchoolDoherty Satellite Program

FY07Harlow Street Fundamental School

New Ludlow School Mill Swan Communication Skills Center

Multiple Intelligences School at Dartmouth Street

Closed 8 SchoolsClosed 8 Schools:







Reduced per pupil instructional supplies & materials by 77%

$130 in FY02 to $40 in FY06

Instructional Supplies Per Pupil

$130 $130$115

$78$65

$40

$70$63 $65 $67 $69

$25

$45

$65

$85

$105

$125

$145

FY01FY02

FY03FY04

FY05FY06

FY07FY08

FY09FY10

FY11







Reduced funding for instructional technology by nearly 85%

from $1.2 m in FY02 to $0.2 million in FY08

Eliminated extended day programs at 10 schools, reduced pre-school from full day to half day, significant reductions in staff development, building maintenance, athletics, and fine arts

Expenditures for Instructional Technology ($ in millions)

$1.2$1.4

$0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2

$0.0

$0.5

$1.0

$1.5







Worcester Public SchoolsWorcester Public SchoolsBudget UpdateBudget Update

FY08: Health Insurance Account Savings

FY09: FY09 Budget Update






Worcester Public SchoolsWorcester Public SchoolsFY08 Health Insurance SavingsFY08 Health Insurance Savings

How much will the WPS save in the health insurance account this year?

$2.4 million







Where did these savings come from?

FY07 contributions and payments to Health Insurance Trust Fund

Health Insurance Trust Fund: Since the city is self-insured for employee health insurance, all contributions for health insurance (employee and employer) are deposited into a Health Insurance Trust Fund. All payments by the city for health insurance are paid from the Trust Fund.







How will these savings be generated?

The trust fund will pay three weeks of both employer and employee contributions

(a three-week “premium holiday”). Each week equals approximately $750,000

in savings for the WPS.

(3 weeks x $800,000 = $2,400,000)







Are these one-time savings?

Yes







Must all of the funds be used this fiscal year or can any of it be used next year?

The City Administration has indicated that any of the three weeks of WPS Employer savings (in $800,000 increments) can be

deferred until FY09.Any decision to defer any of funds to FY09 does not effect the WPS employee premium holiday.







How does the Administration recommend that these funds be spent?

Class Size Reduction

Instructional Supplies and Materials.






Worcester Public SchoolsWorcester Public Schools

FY09 BUDGETFY09 BUDGET






Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget

Revised Revenue Projections:Chapter 70 Aid: $180,493,947

Charter Reimbursement: $ 4,708,761

City Contribution: $91,966,102

State & Federal Grants: $39,501,197

School Nutrition: $ 10,150,452

Total Projected Revenue: $326,820,459






Worcester Public SchoolsWorcester Public Schools Revenues FY08 to FY09 Revenues FY08 to FY09

Revised Projections FY08

Budget

FY09

Projections

Change

Chapter 70 $174,025,314 $180,493,947 $6,468,633

Charter Reimbursement $5,082,267 $4,708,761 -$373,506

City Contribution $89,097,892 $91,966,102 $2,868,210

Grant Revenue $40,029,729 $39,501,197 $-528,532

Nutrition Revenue $10,163,427 $10,150,452 -$12,975

Total Revenue $318,398,629 $326,820,459 $8,421,830







Revised Expenditure Projections:

Employee Salaries: $192,904,936

Health/Retirement: $ 54,520,199

All Ordinary Maintenance: $ 49,692,912

Charter/Choice: $ 21,900,572

School Nutrition: $ 10,676,452

Total Proj. Expenditures: $329,695,071






Worcester Public SchoolsWorcester Public SchoolsExpenditures FY08 to FY09Expenditures FY08 to FY09

Revised Projections FY08

Budget

FY09Projections

Change

Salaries $185,965,297 $192,904,936 $6,939,639

Health/Retirement $54,047,419 $54,520,199 $472,780

Ordinary Maintenance $47,568,572 $49,692,912 $1,929,396

Charter/Choice Tuition $20,653,914 $21,900,572 $1,246,6581

Nutrition Expenses $10,163,427 $10,676,452 $513,025

Total Expenditures $318,398,629 $329,695,071 $11,296,442







Revised Projections:

Summary:Projected Revenue: $326,820,459Projected Expenditures: $329,695,071 Difference (Deficit): -$ 2,874,612







Estimate: ProjectionJan 2008: -$5.7 millionApril 2008: -$2.9 millionChange: $2.8 million

Deficit Projection:







What explains the change in the Health Insurance projection?

Difference between January 2008 to April 2008 Projections

Total Savings: $4,315,000

* January 2008 Projection already included an estimated $2 million savings for Health Insurance Changes

•MGL Ch. 32B, Section 18•Contribution Rates•Plan Design Changes•Enrollment•New Senior Plans







How to determine the General Fund Budget for WPS:

Chapter 70 Aid: $180,493,947City Contribution: $ 91,966,102Charter Reimbursement: $ 4,708,761Less Charter/Choice Tuition: -$ 21,900,572

WPS General Fund Budget: $255,268,238







General Fund Budget:

FY09: $255,268,238FY08: $248,009,032*Increase: $ 7,259,206% Increase: 2.9%

* Final FY08 Budget before charter school adjustments and health insurance trust fund transfer







Current Issues and Long-Term Projections

•Fixed Cost Uncertainty•Health Insurance•Chapter 70 Formula•Charter School Formula•Federal Grant Funding•State Grant Funding







FY08 Health Insurance

Savings: $2.4 million

FY09:Revised Deficit: $2.9 million

Summary





worcester public schools fy2009 updated budget projections april 28, 2008

Documents

total budget reductions

budget projectionsapril

budget spending fy02

years of budget deficits

fund reductions

state grant reductions

worcester public schoolsfy2009

total cost increases