WORCESTER PUBLIC SCHOOLS FY 2008 BUDGET UPDATE FY

WORCESTER PUBLIC SCHOOLS FY 2008 BUDGET UPDATE & FY 02 -FY 07 History April 5, 2007

FY 02 -FY 07 Budget 5 -Years of Budget Deficits and Reductions Totaling $50. 1 million Worcester Public Schools

FY 02 -FY 07 Budget Reductions Actual Annual Budget Deficits Year Baseline Need Actual Budget Deficit FY 03 $235, 800, 000 $224, 454, 032 $11, 345, 968 FY 04 $237, 507, 032 $228, 861, 500 $8, 645, 532 FY 05 $242, 361, 500 $236, 557, 443 $5, 804, 057 FY 06 $249, 624, 443 $244, 361, 728 $5, 262, 715 FY 07 $265, 428, 363 $259, 159, 595 $6, 268, 768 General Fund Reductions: $37, 327, 040 Federal And State Grant Reductions: $12, 727, 826 TOTAL BUDGET REDUCTIONS: $50, 054, 866 Worcester Public Schools

FY 02 -FY 07 Reason for Deficits Revenue Losses: $m State Aid (Career Pathways) $8. 80 State Grant Funds $8. 90 Federal Grant Funds $3. 90 Enrollment Changes $4. 70 Total Revenue Loss $26. 30 Cost Increases Greater than Inflation Health Insurance $15. 80 Charter School Tuition Assessments $3. 20 Special Education Tuition $2. 00 Retirement, Utilities, & Transportation $2. 80 Total Cost Increases > Inflation $23. 80 Total Revenue Loss & Cost Increases: $50. 10 Worcester Public Schools

Enrollment Changes Total Students in Worcester (All Schools) Total WPS Students Worcester Public Schools

Enrollment Changes 2002 -2007 Worcester Public Schools

FY 02 -FY 07 Budget Reductions Change in Budget Spending FY 02 to FY 07 Budget Category FY 02 FY 07 $ Change % Change Employee Salaries $146, 661, 084 $155, 295, 541 $8, 634, 457 5. 9% Health Insurance $19, 140, 964 $38, 381, 170 $19, 240, 206 100. 5% Special Education Tuition $7, 206, 250 $12, 234, 722 $5, 028, 472 69. 8% Retirement Assessment $6, 820, 169 $10, 292, 369 $3, 472, 200 50. 9% Student Transportation $6, 436, 166 $8, 088, 261 $1, 652, 095 25. 7% Building Utilities $5, 448, 949 $7, 457, 058 $2, 008, 109 36. 9% Instructional Supplies & Materials $4, 322, 990 $2, 332, 980 -$1, 990, 010 -46. 0% Building Maintenance $3, 339, 200 $2, 291, 950 -$1, 047, 250 -31. 4% All Other OM Accounts $7, 712, 007 $5, 399, 923 -$2, 312, 084 -30. 0% Charter & School Choice Tuition $7, 913, 300 $17, 385, 621 $9, 472, 321 119. 7% $215, 001, 079 $259, 159, 595 $34, 686, 195 16. 1% Total Budget

FY 02 -FY 07 Budget Reductions Spending on Direct Instructional, Fixed Costs, and Other Areas General Fund Budget FY 94 -FY 07 Worcester Public Schools

FY 02 -FY 07 Budget Reductions Closed 8 Schools: FY 04 Adams Street East Side Preparatory School Granite Street School Greendale School Doherty Satellite Program FY 07 Harlow Street Fundamental School New Ludlow School Mill Swan Communication Skills Center Multiple Intelligences School at Dartmouth Street Worcester Public Schools

FY 02 -FY 07 Budget Reductions Change in Funded Positions City Funded Positions 01 -02 06 -07 Change % Change DAB Administrators 25 18 -7 -28% Bldg. Administrators 82 76 -6 -7% 2, 132 1, 870 -262 -12% 235 125 -110 -47% 49 25 -24 -49% Crossing Guards 118 113 -5 -4% Custodians 173 155 -18 -10% School Plant 46 44 -2 -4% Admin. Clerical 85 70 -15 -18% School Clerical 93 80 -13 -14% Non-Inst Support 64 55 -9 -14% 3, 102 2, 631 -471 -15% 676 575 -101 -15% 3, 778 3, 206 -572 -15% Teachers Inst. Assistants Bus Monitors Totals (City Budget) Grant Funded Positions TOTAL POSITIONS Worcester Public Schools

FY 02 -FY 07 Budget Reductions l Reduced per pupil instructional supplies & materials by 77% $130 in FY 02 to $30 in FY 06 l. Reduced funding for instructional technology by nearly 85% from $1. 2 m in FY 02 to $0. 2 million in FY 07 l. Eliminated extended day programs at 10 schools l. Reduced pre-school from full day to half day l. Significant reductions in staff development, building maintenance, athletics, and fine arts Worcester Public Schools

FY 08 BUDGET The cost to maintain the FY 07 level of service… Worcester Public Schools

FY 08 Budget - Expenditures General Fund Budget FY 08 Level Service Expenditures FY 07 Budget Employee Salaries $154, 613, 257 $159, 599, 852 $ Change % Change $4, 986, 595 3. 2% Health Insurance $39, 063, 454 $42, 850, 445 $3, 786, 991 9. 7% Special Education Tuition $12, 234, 722 $12, 984, 722 $750, 000 6. 1% Retirement Assessment $10, 292, 369 $10, 732, 868 $440, 499 4. 3% Student Transportation $8, 088, 261 $8, 866, 161 $777, 900 9. 6% Building Utilities $7, 457, 058 $7, 718, 297 $261, 239 3. 5% Instructional Supplies $2, 332, 980 $0 0. 0% Building Maintenance $2, 291, 950 $2, 453, 948 $161, 998 7. 1% All Other OM Accounts $5, 399, 923 $5, 264, 056 -$135, 867 -2. 5% $241, 773, 974 $252, 803, 329 $11, 029, 355 4. 6% Total Expenditures

FY 08 Budget Tuition Assessments: Charter School Tuition Assessment School Choice Tuition Assessment Total Tuition Assessments FY 07 Budget FY 08 Est. $ Change $16, 048, 061 $18, 464, 959 $2, 416, 898 $1, 337, 560 $1, 424, 203 % Change 15. 1% $86, 643 6. 5% $17, 385, 621 $19, 889, 162 $2, 503, 541 14. 4% Worcester Public Schools

FY 08 Budget Expenditure Summary FY 07 Budget Total WPS Expenditures Total Tuition Assessments Total FY 08 Est. $ Change $241, 773, 974 $252, 803, 329 $11, 029, 355 $17, 385, 621 $19, 889, 162 % Change 4. 6% $2, 503, 541 14. 4% $259, 159, 595 $272, 692, 491 $13, 532, 896 5. 2% Worcester Public Schools

FY 08 Budget REVENUE PROBLEM Structural Deficit: Funds included in the FY 07 Budget that will not be available in FY 08: Funding Source Amount Federal Grant Funds -$5, 434, 994 City Funds -$2, 500, 000 Ch 70 State Aid (Enrollment change) -$4, 186, 262 Impact Aid Reserve TOTAL -$505, 255 -$12, 626, 511 Worcester Public Schools

FY 08 Budget State Aid Governor’s Budget FY 07 Budget Chapter 70 State Aid FY 08 Est. $ Change $167, 480, 913 $172, 443, 667 $4, 962, 754 % Change 3. 0% Worcester Public Schools

FY 08 Budget City Contribution FY 07 Budget Base Level Additional Contribution - WPS Capital Additional City Contribution - City Funds Additional Contribution WTHS Moving Costs Total City Contribution FY 08 Est. $84, 904, 142 $88, 135, 666 $ Change % Change $3, 231, 524 3. 8% $1, 000, 000 $0 -$1, 000, 000 -100. 0% $500, 000 $0 $87, 404, 142 $88, 135, 666 -$500, 000 -100. 0% $731, 524 0. 8% Worcester Public Schools

FY 08 Budget Other Revenues State Charter School Reimbursement PL 874 Impact Aid Reserve Account Total Other Revenues FY 08 Est. $ Change % Change $3, 649, 540 $4, 950, 704 $1, 301, 164 35. 7% $625, 000 $119, 745 -$505, 255 -80. 8% $4, 274, 540 $5, 070, 449 $795, 909 18. 6% FY 07 Budget Worcester Public Schools

FY 08 Budget Total General Fund Revenue FY 07 Budget Chapter 70 State Aid FY 08 Est. $167, 480, 913 $172, 443, 667 $ Change % Change $4, 962, 754 3. 0% City Contribution $87, 404, 142 $88, 135, 666 $731, 524 0. 8% Other Revenues $4, 274, 540 $5, 070, 449 $795, 909 18. 6% $259, 159, 595 $265, 649, 782 $6, 490, 187 2. 5% Total Revenues: Worcester Public Schools

FY 08 Budget General Fund Deficit FY 08 Budget Deficit Revenue Change Amount $6, 490, 187 Cost Change $13, 532, 896 TOTAL -$7, 042, 709 FY 08 Budget Deficit Amount Available Revenue $265, 649, 782 Level Service Cost $272, 692, 491 TOTAL -$7, 042, 709 Worcester Public Schools

FY 08 Budget State & Federal Grants FY 07 Budget Federal Grant State Grant Total Grant Revenue FY 08 Est. $ Change $29, 426, 041 $23, 991, 047 -$5, 434, 994 $5, 601, 045 % Change -18. 5% $0 0. 0% $35, 027, 086 $29, 592, 092 -$5, 434, 994 -16% Grants Ending: $3, 574, 646 At 10% Reduction: $1, 860, 348 Total Reductions $5, 434, 994 Worcester Public Schools

FY 08 Budget General Fund & Grants Governor’s Budget General Fund: Grant Funds: Total Reductions -$ 7, 042, 709 -$ 5, 434, 994 -$12, 477, 703 Worcester Public Schools

FY 08 Budget General Fund & Grants General Fund: House/Senate Ch 70 : Total Reductions -$7, 042, 709 $1, 581, 647 -$5, 461, 062 Original Deficit: -$12, 477, 703 House/Senate Ch 70 $1, 581, 647 Revised Reductions -$10, 896, 056 Worcester Public Schools

BALANCE THE BUDGET GENERAL FUND Example of Reductions needed to balance the budget deficit Reduce 104 Teacher Positions $5, 445, 989 Reduce Instructional Supplies $708, 420 Reduce 15 School-Based and Central Office Administrative and Support Positions $565, 000 Reduce After School and Enrichment Programs $323, 300 Total Possible Budget Reductions: $7, 042, 709 Worcester Public Schools

BALANCE THE BUDGET GENERAL FUND TEACHER POSITIONS 33 K-6 Classroom Teachers & Itinerants 3 NCLB Positions 32 Secondary Teachers and Middle School Librarians 15 Student Support Services (Guidance, SAC, Psych) 15 Full-Time Building Substitutes 6 Special Education & Home and Hospital 104 Total Projected Teacher Position Reductions Worcester Public Schools

BALANCE THE BUDGET FEDERAL GRANTS Example of Reductions needed to balance the budget deficit Reduce 55 Teacher Positions $2, 495, 724 Reduce Instructional Supplies $333, 140 Reduce staff development and other grant funded non-salary services $2, 606, 130 Total Possible Budget Reductions: $5, 434, 994 Worcester Public Schools

BALANCE THE BUDGET FEDERAL GRANTS TEACHER POSITIONS 11 K-6 Classroom Teachers 11 NCLB Positions 20 Elementary Math and English Intervention Teachers 7 Secondary Teachers 6 Student Support Services (Guidance, SAC, Psych) 55 Total Projected Teacher Position Reductions Worcester Public Schools

CITY MANAGER’S PROPOSALS FY 2008 WPS BUDGET SHORTFALL (12, 477, 702) I. Program Reductions Cut Grant Funded Items Being Reduced 5, 434, 994 Cut 28 Teacher Positions 1, 411, 148 Reduce Instructional Supplies & Materials 541, 560 Postpone OPEB Liability 825, 000 II. Budget Reforms Prescription Drug Management 425, 000 III. Cost Recovery/Fee Changes Increase Athletic Gate Ticket Prices (by $1. 00) 20, 000 Increase Student Lunch Price (by $0. 20) 120, 000 CHANGE TO FY 2008 BUDGET DEFICIT FY 2008 WPS BUDGET SHORTFALL 8, 777, 702 (3, 700, 000) Worcester Public Schools

CITY MANAGER’S PROPOSALS FY 2008 WPS REVENUE FROM OPTIONS $3, 700, 000 RESTORES THE FOLLOWING: I. Program and Services 64 MORE Teacher Positions -$3, 200, 000 * 40 Elementary Teachers * 24 Secondary Teachers Supplies and Materials ($20 per pupil) -$500, 000 TOTAL REDUCTIONS FROM BASELINE SERVICE $3, 700, 000 Worcester Public Schools

Number of Classrooms > 27 Students School Name 27 -29 30+ ALL Elem 3 0 May St 0 1 Belmont Street 0 4 Mc. Grath 2 1 Burncoat St Prep 1 0 Midland St 0 3 Chandler Elem 2 0 Nelson Place 4 0 Chandler Magnet 1 0 Norrback Av 2 1 City View 4 3 Quinsigamond 3 0 Clark St 1 1 Rice Square 3 1 Columbus Park Prep 1 1 Roosevelt 5 2 Elm Park 2 0 Tatnuck 5 0 Flagg St 5 0 Thorndyke Rd 5 1 Gates Lane 3 0 Union Hill 1 0 Goddard School 2 0 Vernon Hill 2 2 Grafton St 2 1 Wawecus Road 2 1 Heard St 1 0 West Tatnuck 2 1 Jacob Hiatt Mag 2 0 Worcester Arts 3 0 Lincoln St 0 2 TOTALS 69 26 School Name

CITY MANAGER’S PROPOSALS FY 2008 WPS BUDGET SHORTFALL $(3, 700, 000) USE 60% of UNUSED LEVY CAPACITY TO MAINTAIN BASE LINE CITY SERVICES $3, 700, 000 OR ALTERNATIVES TO RAISING REAL ESTATE TAXES 1. Close Telecom Loophole $1, 000 2. Approve Local Option Meals/Hotel $825, 000 3. Section 18 -Medicare Supplement Provision $675, 000 4. PILOT Program TBD ALTERNATIVE REVENUE OPTIONS $2, 500, 000 Worcester Public Schools

STATE LEGISLATIVE SOLUTIONS Items WPS State LEP Increment ($150 per pupil)* $586, 000 $10. 0 m Low Income Increment ($175 per pupil)* $2, 600, 000 $57. 0 m $400, 000 $5. 6 m $1, 177, 000 $31. 0 m $600, 000 $25. 0 m Increase Inflation Factor to actual 4. 66% Increase Special Education from 3. 75% to 4%* Change Charter School Funding Formula (2 -yr phase in) TOTAL $5, 363, 000 $128. 6 m * In conjunction with other M. A. S. S. Proposals regarding the adequacy of Foundation Budget (phased-funding over 5 years)

Annual Budget Process STATE BUDGET CITY COUNCIL Governor’s Budget Sets School Department’s Budget Based on City Manager’s Recommendation February 28 House Budget April 11 SCHOOL COMMITTEE Senate Budget May Community Input Session Budget Hearings June 7 & 21 Final State Budget June 30 th Final WPS Budget End of April