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 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.