WORCESTER PUBLIC SCHOOLS FY 2009 Updated Budget Projections

WORCESTER PUBLIC SCHOOLS FY 2009 Updated Budget Projections April 28, 2008

Worcester Public Schools FY 02 -08 Budget History 6 Years of Budget Deficits and Reductions Totaling $58. 1 million

Worcester Public Schools FY 02 -08 Budget History Actual Annual Budget Deficits

Worcester Public Schools Reasons for FY 02 -FY 08 Deficits 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 Schools FY 02 -08 Budget History Change in Budget Spending FY 02 to FY 08

Worcester Public Schools FY 94 -FY 09 Budget Instructional / Fixed Costs Spending

WPS Students Show Progress l MCAS Scores Improve in ELA and Math: More WPS Students are Advanced/Proficient l. More Students taking more rigorous classes l. Competitive Colleges Continue to Accept WPS Graduates However, with adequate funding, we could have even better results.

Worcester Public Schools FY 02 -08 Budget History Change in Funded Positions

Worcester Public Schools FY 02 -08 Budget History 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 -08 Budget History l Reduced per pupil instructional supplies & materials by 77% $130 in FY 02 to $40 in FY 06

Worcester Public Schools FY 02 -08 Budget History l. Reduced funding for instructional technology by nearly 85% from $1. 2 m in FY 02 to $0. 2 million in FY 08 l. 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

Worcester Public Schools Budget Update FY 08: Health Insurance Account Savings FY 09: FY 09 Budget Update

Worcester Public Schools FY 08 Health Insurance Savings How much will the WPS save in the health insurance account this year? $2. 4 million

Worcester Public Schools FY 08 Health Insurance Savings Where did these savings come from? FY 07 contributions and payments to 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.

Worcester Public Schools FY 08 Health Insurance Savings 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)

Worcester Public Schools FY 08 Health Insurance Savings Are these one-time savings? Yes

Worcester Public Schools FY 08 Health Insurance Savings 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 FY 09. Any decision to defer any of funds to FY 09 does not effect the WPS employee premium holiday.

Worcester Public Schools FY 08 Health Insurance Savings How does the Administration recommend that these funds be spent? Class Size Reduction Instructional Supplies and Materials.

Worcester Public Schools FY 09 BUDGET

Worcester Public Schools FY 09 Budget Revised Revenue Projections: Chapter 70 Aid: Charter Reimbursement: City Contribution: State & Federal Grants: School Nutrition: Total Projected Revenue: $180, 493, 947 $ 4, 708, 761 $91, 966, 102 $39, 501, 197 $ 10, 150, 452 $326, 820, 459

Worcester Public Schools Revenues FY 08 to FY 09 Revised Projections Chapter 70 Charter Reimbursement FY 08 Budget FY 09 Projections $174, 025, 314 $180, 493, 947 Change $6, 468, 633 $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 $318, 398, 629 $326, 820, 459 $8, 421, 830 Total Revenue

Worcester Public Schools FY 09 Budget Revised Expenditure Projections: Employee Salaries: Health/Retirement: All Ordinary Maintenance: Charter/Choice: School Nutrition: Total Proj. Expenditures: $192, 904, 936 $ 54, 520, 199 $ 49, 692, 912 $ 21, 900, 572 $ 10, 676, 452 $329, 695, 071

Worcester Public Schools Expenditures FY 08 to FY 09 Revised Projections Salaries FY 08 Budget FY 09 Projections $185, 965, 297 $192, 904, 936 Change $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 $318, 398, 629 $329, 695, 071 $11, 296, 442 Total Expenditures

Worcester Public Schools FY 09 Budget Revised Projections: Summary: Projected Revenue: Projected Expenditures: Difference (Deficit): $326, 820, 459 $329, 695, 071 -$ 2, 874, 612

Worcester Public Schools FY 09 Budget Deficit Projection: Estimate: Jan 2008: April 2008: Change: Projection -$5. 7 million -$2. 9 million $2. 8 million

Worcester Public Schools FY 09 Budget What explains the change in the Health Insurance projection? Difference between January 2008 to April 2008 Projections Total Savings: $4, 315, 000 • MGL Ch. 32 B, Section 18 • Contribution Rates • Plan Design Changes • Enrollment • New Senior Plans * January 2008 Projection already included an estimated $2 million savings for Health Insurance Changes

Worcester Public Schools FY 09 Budget How to determine the General Fund Budget for WPS: Chapter 70 Aid: City Contribution: Charter Reimbursement: Less Charter/Choice Tuition: WPS General Fund Budget: $180, 493, 947 $ 91, 966, 102 $ 4, 708, 761 -$ 21, 900, 572 $255, 268, 238

Worcester Public Schools FY 09 Budget General Fund Budget: FY 09: $255, 268, 238 FY 08: $248, 009, 032* Increase: $ 7, 259, 206 % Increase: 2. 9% * Final FY 08 Budget before charter school adjustments and health insurance trust fund transfer

Worcester Public Schools FY 09 Budget Current Issues and Long-Term Projections • Fixed Cost Uncertainty • Health Insurance • Chapter 70 Formula • Charter School Formula • Federal Grant Funding • State Grant Funding

Worcester Public Schools FY 09 Budget Summary FY 08 Health Insurance Savings: $2. 4 million FY 09: Revised Deficit: $2. 9 million