Shrewsbury Public SchoolsFiscal Year 2013

Initial Financial Projection

Approach

Identify cost of moving the current program forward, with minor modifications, given current estimated increases and known loss of revenues

This is not a budget recommendation; a recommendation is expected to be made in mid-March

Variables will change over time

Conditions & Assumptions

No new staff unless required for special education needs

Contractual obligation of increased work year for teachers by two days; 2.75% salary adjustment

Same adjustment applied to other education employee groups, represented and non-represented, except where in negotiations

Conditions & Assumptions

Transportation cost increase estimated at 3.5% based on projected Consumer Price Index adjustment, plus increases in mandated transportation for homeless students

Modest operational cost increases for pent up demand for professional development and technology and for increases in “cost of doing business”

Conditions & Assumptions

• Projected increases for out of district special education tuitions estimated at 4%, applied to projected placements

• Projected increases in required summer special education programming

• Projected level costs for out of district special education transportation

• Projected increase in special education bus monitors for in district transportation (2)

Conditions & Assumptions

Projected decrease in number of students attending vocational technical high school (3) with 1.5% decrease in tuition level

Assuming salary differentials for known retirements

Conditions & Assumptions

Assuming no changes to current fee structure

Assuming level funding from entitlement grants

Conditions & Assumptions

Remaining federal stimulus funding will be exhausted

Remaining Education Jobs funding will be exhausted

Conditions & Assumptions

Assuming 65% reimbursement rate for state Circuit Breaker special education funding

Assuming no Circuit Breaker reserves to carry forward

Financial Projections:Estimated Increases

Wages $1,735,985

Special Education $1,019,519

Operations $361,000

Transportation $195,878

(Offsets) ($365,970)

Total Estimated Cost Increase $2,946,412

Financial Projections:Estimated Increases

Total Estimated Cost Increase $2,946,412

• This represents 6.25% of the current appropriated budget of $47,139,676

• This represents 5.90% of the appropriated budget plus Federal Stimulus/Education Jobs and Circuit Breaker reserves used in Fiscal Year 2012

Financial Projections:Lost Revenue

Federal Stimulus Funding $98,848

Federal Education Jobs Funding $1,207,292

Circuit Breaker Reserves $1,145,000

Total Revenue Lost $2,451,140

• This represents 5.20% of funding beyond the current appropriated budget, which was level funded

Financial Projections:Budget Gap

Total Estimated Cost Increase $2,946,412

Total Revenue Lost $2,451,140

Budget Gap $5,397,462

• This represents 11.45% of the current appropriated budget

Variables

State funding levels (Chapter 70, Circuit Breaker)

Town revenues

Evolution of current fiscal year

Evolution of projections to known costs

Next Steps• Administration has begun performing analysis of budget for

potential efficiencies and reductions

• Public Budget Hearing at School Committee meeting on February 15

• Three Board Meeting on March 6

• Administration intends to make recommendation for FY13 Budget at March 14 School Committee meeting