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Worcester Public Schools

FY14 BUDGET Preliminary Budget Estimates

Joint Meeting of the Finance and Operations & City Council

Education Committees

March 2013

Worcester Public Schools

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

Worcester Public Schools

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

Governor’s FY 14 Budget… Spending Increases

4

MassHealth 1,400

The Connector -259

Education 593

Chapter 70 226

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 2,719Source: Massachusetts Taxpayers Foundation, Presentation to MASBO, February 7, 2013

Worcester Public Schools

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 out-

of-district special education placements ($2.5 million)

• Continues $25 per pupil Minimum Aid • Fully Funds Target Aid

Worcester Public Schools

State Budget

Governor’s Budget: Chapter 70 Items Baseline Changes*: $91 million New Sped/Pre-K Changes: $43 million Effort Reduction** (Not WPS) $92 million $226 million

*Baseline changes are enrollment & inflation factor ** Additional state aid to for over-contributing communities

How is Local Contribution Target Calculated?

Statewide based on 50% Property Wealth and 50% Local Income wealth

Known as the Aggregate Wealth Model

1/23/2013

Progress Toward Target Contributions

Local Contribution…Effort Goal State Formula

FY14 Formula:

2012 EQV = $975,688,844,600

Property Percentage = 0.3593%

Total Effort from Property Wealth = $3,505,411,555

DOR Total Income 2010 = $224,782,705,522

Income Percentage = 1.5595%

Local Effort from Income Wealth = $3,505,411,555

Combined Effort Yield = $7,010,823,108

Local Effort Calculation… Worcester

FY14 Formula: 2012 EQV = $12,173,645,100 Property Percentage = 0.3593% Total Effort from Property Wealth = $43,736,932 DOR Total Income 2010 = $3,321,138,000 Income Percentage = 1.5595% Local Effort from Income Wealth = $51,792,043 Combined Effort Yield = $95,528,974 Target Local Share = 30.27% Target Aid Share = 69.73%

Target Local Contribution

Amount

Worcester Public Schools

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

Revenue Issues

Federal Funding: • Impact at level funding (-$1 million)

• Impact with budget cuts • Impact with sequestration (- $1.6 million

additional)

Worcester Public Schools

Federal Grant History Worcester Public Schools

Worcester Public Schools * Excludes RTTT - $2.5 million

*

Uses of Major Grant Funds

Title I Title II IDEA

35 Focused Instructional Coaches

14 Focused Instructional Coaches

198 Instructional Assistants for Special Education Programs 19 Pre-K Teachers and

Instructional Assistants

32 Math & ELA Tutors

SES & Summer Programs

Kindergarten Grant Title III

33 (of 67) Kindergarten Instructional Assistants

6 ELL Focused Instructional Coaches

Afterschool Programs

Staff Development

Worcester Public Schools

Revenue Issues

Worcester Public Schools

City Contribution: • Net School Spending

• Minimum Required Level • FY14 Increase (“Growth Factor”) • Transportation & Other Non-NSS

Item Increases

Foundation Budget

Foundation Budget is based on student enrollment as of October 1, 2012. 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.

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

Inflation Index History FY98-FY14

WPS Enrollment

Enrollment Change from Last Year

Pre-School -60 (-3.8%)

Kindergarten +36 (+1.7%)

Grades 1-6 +154 (+1.4%)

Grades 7-8 +232(+7.5%)

Grades 9-12 +47 (+0.7%)

Total Change 409 (+1.7%)

ELL +970 (+13.8%)

Low Income +663 (+3.5%)

WPS enrollment change is creating Ch70 revenue increases!

Student Enrollment as of October 1 each year

Enrollment Trends: 1 year: 1.7% 5 year: 8.3% 10 year: -3.9%

Projected Student Enrollments

NESDEC: 2013: 25,022 2015: 25,391 2017: 25,877 (+4.5) NESDEC

MSBA*

*with WPS Pre-K Assumptions

MSBA*: 2013: 25,032 2015: 25,147 2017: 25,529 (3.0%)

24,7699 25,7859 25,8779

Projected Student Enrollments

---------------projected--------------- by NESDEC

English Language Learners Enrollment

Source: Foundation Enrollment Report; K-12 only (not including Pre-K)

111% increase

Special Education Enrollment

Source: WPS October 1 Report

12.3% increase

Charter School Enrollment

Source: MA DESE

45% increase

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

Foundation Budget How Funded…

State Aid

To Make up

Difference

Local

Contribution

Local Contribution

Foundation Level Reach Foundation

Above Foundation Spending – 100%

Local Funding

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

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%

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.

Required City Contribution In relation to foundation budget

Worcester Public Schools

$ in millions

24% increase

since FY05

39% increase

since FY05

Required City Contribution Growth Entirely Attributed to Growth in City’s Revenue Base

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

Worcester Public Schools

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)

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

Worcester Public Schools

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)

Worcester Public Schools

* Does not count towards “Net School Spending” ** See slides that follow

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

Worcester Public Schools

Worcester Public Schools

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)

FY14 Budget

Worcester Public Schools

Program Needs Resulting in Additional Funding Request from Last Year Still Exist and

No Longer Optional.

Worcester Public Schools

FY 14 Elementary Class Size

At No Change in Elementary Staff (579) Projected Class Sizes:

Less than 23 334 (57%)

23-26 208 (36%)

27-30 31 (6%)

Greater than 30 6 (1%)

District Average Class Size: 22.1

Worcester Public Schools

FY 14 Elementary Class Size

Add 21 Elementary Staff (600), Projected Class Sizes:

Less than 23 384 (64%)

23-26 216 (36%)

27-30 0

Greater than 30 0

District Average Class Size: 21.4

FY14 Budget

Worcester Public Schools

$27 million of schools

of choice is 9% above foundation budget.

State Average for above foundation

spending is 22.7% for FY13

Foundation Budget: Spending as % of Required

Worcester Public Schools

Districts surrounding Worcester:

99.6%

121%

Berlin- Boylston 142.5%

Wachusett RSD 111.7%

Leicester 102.5%

Nasboba RSD 138.6%

Millbury 102.5%

102.5%

Shrewsbury 111.1%

Clinton 106.8%

West Boylston 131.6%

Mendon-Upton 112.1%

Spencer- East Brookfield 110.6%

Quabbin RSD 108.3% West Boylston

131.6%

Foundation Budget: Spending as % of Required

Worcester Public Schools

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Worcester 99.6%

Auburn 121%

Wachusett 111.7%

Leicester 102.5%

W. Boylston 131.6%

Berlin-Boylston 142.5%

Compared to the 5 highest school districts accepting Worcester Resident Students through School Choice n = 320 of 427 (75% of all school choice students)

How are Funds Spent in Worcester? All Funding Sources

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Classroom & Specialist Teachers (44.7%)

Operations & Maintenance (6.2%) Instructional Leadership (4.5%)

Instructional Materials and Technology

(4.1%)

Guidance & Counseling (2.5%)

Professional Development (1.6%)

Insurance, Retirement and Other Programs

(18.8%)

Pupil Services (9.4%)

Other Teaching Services (6.4%)

Administration (1.5%)

Source: MA DESE Less City Expenditures for Net School Spending

Total FY12 Spending $310,853,773

FY12 Per Pupil Spending Administration Expenses

Worcester $389.69

State Avg $471.03

Lynn $440.62

Fall River $407.90

Administrative Spending: WPS Budget and City of Worcester Assessment

Worcester Public Schools

FY13 Administrative Spending: Worcester Compared to Other Gateway Cities*

Worcester Public Schools

*New Bedford FY13 information not yet submitted to DESE

Foundation Budget: Spending as % of Required

Worcester Public Schools

FY13 Status of Attainment of Required Spending :

-$812,207*

*estimated amount to be carried forward and added to FY14 requirement

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 Worcester Public Schools

Worcester Public Schools

Teacher Positions (General Fund)

Recent Accomplishments

Technology Investment in Schools:

7,500 Computers 700 iPads

400 Document Cameras Wireless Access in Schools

Worcester Public Schools

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.

Worcester Public Schools

Capital Projects

Worcester Public Schools

North High School Parking Lots and

Athletic Fields Nearing Completion

Capital Projects

Worcester Public Schools

Worcester Technical High School (2006)

Forest Grove Middle School 2001 Renovation of 1960 Building

Roosevelt Elementary School (2001) Norrback Ave Elementary

(1999)

Woodland/Claremont Academies (1999)

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

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.

Capital Budget

Examples of Other Work Between 2000 and 2010

• Replaced Rooftop Units and Convert Sections of South High from Electricity to Natural Gas

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)

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

Capital Budget

Worcester Public Schools

• $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.

Capital Budget

Worcester Public Schools

Doherty High School

Capital Budget

Worcester Public Schools

Burncoat High School

Capital Budget

Worcester Public Schools

South High School

Capital Budget

Worcester Public Schools

Worcester East Middle

Flagg Street School

Before After

Worcester Public Schools

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

ESCo Projects

Worcester Public Schools

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

Worcester Public Schools

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.

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

Worcester Public Schools

MSBA Projects

Nelson Place School: Replacement or Major Renovation

Worcester Public Schools

MSBA Projects

Next Steps: New Statement of Interest

filing with MSBA (through April 10, 2013)

Worcester Public Schools

MSBA Projects

WPS 2013 Recommendations: For Major Renovation / Replacement

1. South High School 2. Burncoat High School 3. Doherty Memorial High School

Worcester Public Schools

South High School

Worcester Public Schools

Burncoat High School

Worcester Public Schools

Doherty High School

Worcester Public Schools

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

Worcester Public Schools

Worcester East Middle

Worcester Public Schools

Windows, Roof, and Boiler Replacement

Columbus Park School

Worcester Public Schools

Windows and Boiler Replacement

Tatnuck Magnet School

Worcester Public Schools

Windows Replacement

Worcester Arts Magnet School

Worcester Public Schools

Windows Replacement

FY15-FY18 Capital Plan*

Worcester Public Schools

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

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

Worcester Public Schools

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.