WORCESTER PUBLIC WORCESTER PUBLIC SCHOOLSSCHOOLS
FY2009 Updated Budget ProjectionsFY2009 Updated Budget Projections
April 28, 2008April 28, 2008
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
Worcester Public SchoolsWorcester Public SchoolsFY02-08 Budget HistoryFY02-08 Budget History
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 SchoolsFY02-08 Budget HistoryFY02-08 Budget History
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%
Worcester Public SchoolsWorcester Public SchoolsFY02-08 Budget HistoryFY02-08 Budget History
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:
Worcester Public SchoolsWorcester Public SchoolsFY02-08 Budget HistoryFY02-08 Budget History
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
Worcester Public SchoolsWorcester Public SchoolsFY02-08 Budget HistoryFY02-08 Budget History
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 SchoolsFY02-08 Budget HistoryFY02-08 Budget History
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
Worcester Public SchoolsWorcester Public SchoolsFY08 Health Insurance SavingsFY08 Health Insurance Savings
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.
Worcester Public SchoolsWorcester Public SchoolsFY08 Health Insurance SavingsFY08 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 SchoolsWorcester Public SchoolsFY08 Health Insurance SavingsFY08 Health Insurance Savings
Are these one-time savings?
Yes
Worcester Public SchoolsWorcester Public SchoolsFY08 Health Insurance SavingsFY08 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 FY09.Any decision to defer any of funds to FY09 does not effect the WPS employee premium holiday.
Worcester Public SchoolsWorcester Public SchoolsFY08 Health Insurance SavingsFY08 Health Insurance Savings
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
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
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
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
Revised Projections:
Summary:Projected Revenue: $326,820,459Projected Expenditures: $329,695,071 Difference (Deficit): -$ 2,874,612
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
Estimate: ProjectionJan 2008: -$5.7 millionApril 2008: -$2.9 millionChange: $2.8 million
Deficit Projection:
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
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
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
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
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
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
Worcester Public SchoolsWorcester Public SchoolsFY09 BudgetFY09 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 SchoolsWorcester Public SchoolsFY09 BudgetFY09 Budget
FY08 Health Insurance
Savings: $2.4 million
FY09:Revised Deficit: $2.9 million
Summary