Worcester Public Schools FY14 BUDGET. Preliminary Budget Estimates. Joint Meeting of the Finance and Operations & City Council Education Committees

Transcription

1 FY14 BUDGET Preliminary Budget Estimates Joint Meeting of the Finance and Operations & City Council Education Committees March 2013

2 FY14 Budget Drivers Revenue Expenditures 1. State Funding Ch70 1. Contractual Increases 2. Kindergarten Grant 2. Class Size 3. Circuit Breaker Funding 3. MassCore & Common Core 4. Charter/Choice Funding 4. Technology 5. Local Contribution 5. Special Ed & ELL Services 6. Federal Grants 6. School Safety, Space, PCB s, New Programs

3 Revenue State Budget Funding: Recent 9c Cuts Chapter 70 Funding Circuit Breaker (70% in FY13) Charter School Reimbursement (funded at 83% of full funding in FY13) Kindergarten Grant

4 Governor s FY 14 Budget Spending Increases MassHealth 1,400 The Connector -259 Education 593 Chapter Other K-12 Education 40 Early Education 132 Higher Education 195 Human Services 247 Public Safety 136 Transportation 269 Employee Benefits 240 Other 93 Net New Spending 2,719 Source: Massachusetts Taxpayers Foundation, Presentation to MASBO, February 7,

5 State Budget Governor s FY14 Education Budget Preview: Full Funding of Foundation Budget Lift Cap on Number of Pre-School Students Counted in Foundation Budget ($1 m) Extended Day in High-Need Middle Schools Increases assumed cost of the average outof-district special education placements ($2.5 million) Continues $25 per pupil Minimum Aid Fully Funds Target Aid

6 Governor s Budget: Chapter 70 Items State Budget Baseline Changes*: New Sped/Pre-K Changes: Effort Reduction** (Not WPS) $91 million $43 million $92 million $226 million *Baseline changes are enrollment & inflation factor ** Additional state aid to for over-contributing communities

7 How is Local Contribution Target Calculated? Statewide based on 50% Property Wealth and 50% Local Income wealth Known as the Aggregate Wealth Model

8 Progress Toward Target Contributions 1/23/2013

9 Local Contribution Effort Goal State Formula FY14 Formula: 2012 EQV = $975,688,844,600 Property Percentage = % Total Effort from Property Wealth = $3,505,411,555 DOR Total Income 2010 = $224,782,705,522 Income Percentage = % Local Effort from Income Wealth = $3,505,411,555 Combined Effort Yield = $7,010,823,108

10 Local Effort Calculation FY14 Formula: 2012 EQV = $12,173,645,100 Property Percentage = % Total Effort from Property Wealth = $43,736,932 DOR Total Income 2010 = $3,321,138,000 Income Percentage = % Local Effort from Income Wealth = $51,792,043 Worcester Combined Effort Yield = $95,528,974 Target Local Share = 30.27% Target Aid Share = 69.73% Target Local Contribution Amount

11 State Budget Governor s FY14 Education Budget Preview: Circuit Breaker estimated at 55-60% Charter School Reimbursement will not be fully funded per MA DESE McKinney-Vento Transportation funded at approximately 50% (to city s General Fund) Kindergarten Grant level funded

12 Revenue Issues Federal Funding: Impact at level funding (-$1 million) Impact with budget cuts Impact with sequestration (- $1.6 million additional)

13 Federal Grant History * * Excludes RTTT - $2.5 million

14 Uses of Major Grant Funds Title I Title II IDEA 35 Focused Instructional Coaches 19 Pre-K Teachers and Instructional Assistants 32 Math & ELA Tutors SES & Summer Programs 14 Focused Instructional Coaches 198 Instructional Assistants for Special Education Programs Kindergarten Grant 33 (of 67) Kindergarten Instructional Assistants Title III 6 ELL Focused Instructional Coaches Afterschool Programs Staff Development

15 Revenue Issues City Contribution: Net School Spending Minimum Required Level FY14 Increase ( Growth Factor ) Transportation & Other Non-NSS Item Increases

16 Foundation Budget Foundation Budget is based on student enrollment as of October 1, Foundation Budget is a per pupil funding formula with differentiated rates for grade or program adjusted annually for inflation. The foundation budget includes enrollments for charter schools and students attending other school districts through school choice.

17 FY14 Foundation Budget Category Students Rate Total Pre-School 1,009 $3,555 $3,586,995 Kindergarten Half 15 $3,555 $53,325 Kindergarten Full 1,437 $7,110 $10,217,070 Elementary 6,510 $7,153 $46,566,030 Jr. High / Middle 4,331 $6,781 $29,368,511 High School 4,118 $8,456 $34,821,808 ELL PreK 505 $4,544 $2,294,720 ELL K Half - $4,544 $0 ELL KF-12 7,987 $9,088 $72,585,856 Vocational 1,759 $12,894 $22,680,546 Special Ed In District 999 $24,745 $24,720,255 Special Education Out of District 244 $35,848 $8,746,912 Low Income Elem 11,750 $3,393 $39,867,750 Low Income Other 7,301 $2,744 $20,033,944 Totals 26,908 $315,543,722

18 Inflation Index History FY98-FY14

19 WPS enrollment change is creating Ch70 revenue increases! WPS Enrollment Enrollment Change from Last Year Pre-School -60 (-3.8%) Kindergarten +36 (+1.7%) Grades (+1.4%) Grades (+7.5%) Grades (+0.7%) Total Change 409 (+1.7%) ELL +970 (+13.8%) Low Income +663 (+3.5%)

20 Enrollment Trends: 1 year: 1.7% 5 year: 8.3% 10 year: -3.9% Student Enrollment as of October 1 each year

21 Projected Student Enrollments NESDEC: MSBA*: 2013: 25, : 25, : 25, : 25, : 25,877 (+4.5) 2017: 25,529 (3.0%) NESDEC MSBA* 25, , ,8779 *with WPS Pre-K Assumptions

22 Projected Student Enrollments projected by NESDEC

23 English Language Learners Enrollment 111% increase Source: Foundation Enrollment Report; K-12 only (not including Pre-K)

24 Special Education Enrollment 12.3% increase Source: WPS October 1 Report

25 Charter School Enrollment 45% increase Source: MA DESE

26 Foundation Budget Once Foundation Budget is Calculated: Who Pays? State and Local Contributions How a local contribution is determined How much state aid is received

27 Foundation Budget How Funded Foundation Level Above Foundation Spending 100% Local Funding Reach Foundation State Aid To Make up Difference Local Contribution Local Contribution

28 Local Contribution Worcester How much required from local contribution in FY14? FY13 Required Level: $88,586,175 Municipal Revenue Growth Factor* : 4.22% FY14 Required Level: $92,324,512 FY14 Target Level (from earlier slide): $95,528,974 Shortfall from Target Level: 1.02% Since less than 2.5% shortfall from Target: $92,324,512

29 Municipal Revenue Growth Factor What is the MRGF? The growth in revenue available to the city from: Tax Levy Limit (assumed at 2.5% growth) Estimated New Growth Change in estimated non-education State Aid Change in estimated local receipts (prior year) Estimated increase for Worcester in FY14: 4.22%

30 Putting it all Together FY14 Foundation Budget*: $315,542,282 Local Contribution: $ 92,324,512 Chapter 70 State Aid: $223,217,770 * Includes Worcester resident charter school and school choice students.

31 Required City Contribution $ in millions In relation to foundation budget 39% increase since FY05 Required City Contribution Growth Entirely Attributed to Growth in City s Revenue Base 24% increase since FY05

32 City of Worcester s MRGF Change in Available Local Revenue from Previous Year

33 Putting it all Together FY14 Preliminary WPS Budget FY13 FY14 (est) Change Chapter 70 $210,364,137 $223,217,770 $12,853,633 Local Contribution* ** $99,583,509 $103,499,205 $3,915,696 Charter School Reimbursement $4,205,828 $4,515,444 $309,616 Less Charter/Choice Assessments -$28,786,662 -$29,630,200 -$843,538 General Fund Budget** $285,366,509 $301,602,219 $16,235,710 *Includes the required spending and costs for non-foundation budget areas (i.e. transportation, building rentals, crossing guards, and adult education) **Does not include FY13 Required Spending Carry-Forward Amount or the increase in non-net school spending areas (estimated at $904,000)

34 FY14 Contractual Increases Contractual Increases: in millions Employee Salaries* $2.5 Health Insurance (8%) $3.2 Tuition** $2.5 Transportation*** $0.5 Retirement Assessments $0.8 All Other Accounts $0.5 Inflation Cost Increases: $10.0 (3.5%) *No cost of living adjustments included **Includes tuition to QCC for Gateway to College Program ***Contract increase only; does not reflect increased service based on student need

35 FY14 Budget Decisions Budget Area: in millions Employee Raises: $2.1 (for each 1%) OPEB Trust Fund Payment *: $3.0 Special Ed. Transportation*: $0.5 (add 6 buses) Elementary Class Size: $1.6 (add 21)** Middle School Class Size: $0.7 (add 10) MassCore Transition: $0.7 (add 10) Technology Issues: $1.1 (lease option) * Does not count towards Net School Spending ** See slides that follow

36 FY14 Budget Decisions Budget Area: in millions Special Ed. Positions $1.7 (add 30) ELL Positions $1.0 (add 16) Textbooks/MassCore $0.5 School Nurses $0.3 (add 6) Student Support Positions $0.5 (add 6) Summer School Funding $0.5 Initial Needs Assessment: $14.2 million* *Plus $2.1 million for each 1% employee cost-of-living and additional costs for items on next page

37 FY14 Budget Decisions Budget Area: (Amounts TBD) School Safety Playground Equipment Rental of Space (for enrollment/class size) Exam / I.B. School Planning Year PCB Next Steps (approx. $1 million in FY13)

38 FY14 Budget Program Needs Resulting in Additional Funding Request from Last Year Still Exist and No Longer Optional.

39 FY 14 Elementary Class Size At No Change in Elementary Staff (579) Projected Class Sizes: Less than (57%) (36%) (6%) Greater than 30 6 (1%) District Average Class Size: 22.1

40 FY 14 Elementary Class Size Add 21 Elementary Staff (600), Projected Class Sizes: Less than (64%) (36%) Greater than 30 0 District Average Class Size: 21.4

41 FY14 Budget $27 million of schools of choice is 9% above foundation budget. State Average for above foundation spending is 22.7% for FY13

42 Districts surrounding Worcester: Foundation Budget: Spending as % of Required Wachusett RSD 111.7% West Boylston 131.6% Clinton 106.8% Nasboba RSD 138.6% Berlin- Boylston 142.5% Quabbin RSD 108.3% West Boylston 131.6% 99.6% Shrewsbury 111.1% 121% 102.5% Spencer- East Brookfield 110.6% Leicester 102.5% Millbury 102.5% Mendon-Upton 112.1%

43 Compared to the 5 highest school districts accepting Worcester Resident Students through School Choice n = 320 of 427 (75% of all school choice students) Foundation Budget: Spending as % of Required Berlin-Boylston 142.5% W. Boylston 131.6% Auburn 121% Wachusett 111.7% Leicester 102.5% Worcester 99.6%

44 How are Funds Spent in Worcester? 100% Professional Development (1.6%) All Funding Sources Administration (1.5%) 90% 80% 70% Instructional Materials and Technology (4.1%) Instructional Leadership (4.5%) Operations & Maintenance (6.2%) Other Teaching Services (6.4%) Pupil Services (9.4%) Guidance & Counseling (2.5%) 60% 50% Insurance, Retirement and Other Programs (18.8%) 40% 30% 20% 10% 0% Source: MA DESE Less City Expenditures for Net School Spending Classroom & Specialist Teachers (44.7%) Total FY12 Spending $310,853,773

45 FY12 Per Pupil Spending Administration Expenses State Avg $ Lynn $ Fall River $ Worcester $389.69

46 Administrative Spending: WPS Budget and City of Worcester Assessment

47 FY13 Administrative Spending: Worcester Compared to Other Gateway Cities* *New Bedford FY13 information not yet submitted to DESE

48 Foundation Budget: Spending as % of Required FY13 Status of Attainment of Required Spending : -$812,207* *estimated amount to be carried forward and added to FY14 requirement

49 Recent Accomplishments Balanced Budgets with no loss of core educational services Maintained Elementary Class Size Added Ch74 and foreign language courses and added high school courses for MassCore implementation Added School Nurses Services Added services to Special Education and ESL

50 Teacher Positions (General Fund)

51 Recent Accomplishments Technology Investment in Schools: 7,500 Computers 700 ipads 400 Document Cameras Wireless Access in Schools

52 FY14 Budget Approach Zero-based budgeting Year 4: All positions, programs and services under thorough annual review Long term planning: student achievement and finance Status Quo is not an option: FY14 Budget will need to reflect changes beyond revenue/expense projections.

53 Capital Projects North High School Parking Lots and Athletic Fields Nearing Completion

54 Capital Projects Worcester Technical High School (2006) Forest Grove Middle School 2001 Renovation of 1960 Building Roosevelt Elementary School (2001) Woodland/Claremont Academies (1999) Norrback Ave Elementary (1999)

55 Capital Budget City provides $3 million annual for school rehabilitation projects History of projects concentrated on boiler replacement and upgrades (efficiency & natural gas). Other projects have included some Roof and Window Replacements, among other investments

56 Capital Budget Examples of Other Work Between 2000 and 2010 Science Labs at South and Burncoat High Schools Windows replacement at Vernon Hill & Heard St.

57 Capital Budget Examples of Other Work Between 2000 and 2010 Replaced Rooftop Units and Convert Sections of South High from Electricity to Natural Gas

58 Capital Budget Examples of Other Work Between 2000 and 2010 HVAC replacement at Doherty, Burncoat High, Goddard, Chandler Magnet, Rice Square, & Heard Street. Renovation of Foley Stadium* (included private donated funds)

59 Capital Budget Examples of Other Work Between 2000 and 2010 Roof replacements at South High, Nelson Place, Wawecus, Chandler Elementary, West Tatnuck, May Street, Union Hill, Creamer Center, Grafton Street, Fanning, McGrath, and Foley Stadium. FOG (Fats, Oil, and Grease) Compliance Underground Storage Tank Removals (17 sites) Various Chimney repairs

60 Capital Budget $7.7 million investment to undertake cosmetic repairs at the following schools Doherty High School Burncoat High School South High School Worcester East Middle Union Hill School Chandler Elementary Flagg Street School Clark Street School Tatnuck Magnet Goddard Elementary City provided $3 million one-time funds in 2011, combined with $3 million from 2011 and $1.7 million from the 2012 building rehabilitation allocation from City to WPS.

61 Capital Budget Doherty High School

62 Capital Budget Burncoat High School

63 Capital Budget South High School

64 Capital Budget Before After Worcester East Middle Flagg Street School

65 ESCo Projects Replace Boiler & Chiller Units: Woodland/Claremont Norrback Ave Quinsigamond Elementary Roosevelt Elementary Replace Boiler Projects: Union Hill & Worcester Arts Magnet Solar Photovoltaic systems at WTHS and Sullivan Middle; Small wind turbine at WTHS, and new roof at Jacob Hiatt School

66 ESCo Projects Most schools to receive some/all of the following: Building Controls and Automation Occupancy Sensor Building Infiltration Water Conservation Refrigeration Upgrades Boiler Controls Steam Trap Replacement Attic Insulation

67 ESCo Projects These ESCo projects are in addition to Computer Power Management Lighting Upgrades that WPS has already undertaken resulting in more that $200,000 in annual electricity savings.

68 MSBA Projects (Summer 2013)* Accelerated Repair Projects Approved: Chandler Magnet School (Windows) May Street School (Windows) Lake View Schools (Windows) New Citizens Center (Windows/Boiler) Jacob Hiatt School (Boiler) *projects may extend to Summer 2014

69 MSBA Projects Nelson Place School: Replacement or Major Renovation

70 MSBA Projects Next Steps: New Statement of Interest filing with MSBA (through April 10, 2013)

71 MSBA Projects WPS 2013 Recommendations: For Major Renovation / Replacement 1. South High School 2. Burncoat High School 3. Doherty Memorial High School

72 South High School

73 Burncoat High School

74 Doherty High School

75 MSBA Projects WPS 2013 Recommendations: Accelerated Repair Projects (Limited to Roof, Windows, Boilers) 1. Worcester East Middle: Windows, Boiler, & Roof 2. Columbus Park School: Windows & Boiler 3. Tatnuck Magnet School: Windows 4. Worcester Arts Magnet: Windows

76 Worcester East Middle Windows, Roof, and Boiler Replacement

77 Columbus Park School Windows and Boiler Replacement

78 Tatnuck Magnet School Windows Replacement

79 Worcester Arts Magnet School Windows Replacement

80 FY15-FY18 Capital Plan* Window Replacements: Belmont Street Chandler Elementary Clark Street Elm Park Flagg Street Goddard School McGrath Elementary Rice Square Thorndyke Road Union Hill Wawecus Road West Tatnuck *Assumes MSBA funding for projects (at approximately 3-4 projects per year

81 Non-MSBA Projects: School Safety Equipment Heard Street Roof Vernon Hill Masonry Jacob Hiatt Masonry WEMS Boiler Room Repairs* Roosevelt School Walk-in Cooler Repairs Parent Information Center Boiler Underground Storage Tank Removal Playgrounds Maintenance & Repair Replace All Modular Units Univent Repair Facilities Equipment for Buildings * If not eligible for MSBA work

82 FY14 Budget to be submitted in May to coincide with city s budget hearings & opportunity for parents and community feedback prior to School Committee budget hearings in June.

83