Worcester Public SchoolsWorcester, Massachusetts

Report of the Superintendent

FY11 BUDGETPreliminary Estimates

Transforming Challenge into Opportunity

October 15, 2009

High Levels of Student Performance

Academic Achievement

Academic Achievement

Aca

dem

ic A

chie

vem

ent A

cadem

ic Ach

ievemen

t

Digital Age Literacy•Basic, Scientific, Economic, and

Technological Literacies•Visual & Information Literacies

•Multicultural Literacy and Global Awareness

Inventive Thinking•Adaptability, Managing

Complexity, and Self-Direction•Curiosity, Creativity, and Risk

Taking•Higher-Order Thinking and

Sound Reasoning

Effective Communication•Teaming, Collaboration, and

Interpersonal Skills•Personal, Social, and Civic

Responsibility•Interactive Communication

High Productivity•Prioritizing, Planning, and

Managing for Results•Effective Use of Real-World Tools

•Ability to Produce Relevant, High-Quality Products

21st Century Learning

Starting with the Student

State RequirementsState Requirements

Raising the Bar For Every StudentRaising the Bar

For Every Student

Systems of Support for Success in the 21st CenturySystems of Support for Success in the 21st Century

Worcester’s Vision of Excellence

Worcester’s Vision of Excellence

Challenges & Opportunities

• Make immediate and long-term improvements in student performance

• Address the needs of diverse learners

• Attract and retain a diverse customer base

• Position WPS as The Choice for Education

• Make immediate and long-term improvements in student performance

• Address the needs of diverse learners

• Attract and retain a diverse customer base

• Position WPS as The Choice for Education

• Prioritize & Focus on Results

• Capitalize on established strengths

• Strengthen human capital

• Foster effective internal and external partnerships

• Implement a

comprehensive system of accountability

• Prioritize & Focus on Results

• Capitalize on established strengths

• Strengthen human capital

• Foster effective internal and external partnerships

• Implement a

comprehensive system of accountability

Challenges Opportunities

FY10 BUDGET UPDATE

• State is $212 million below revenue benchmarks for 1st quarter of fiscal year.

• State budget shortfall projected at $600 million for year.

• Education cuts to balance the current year are possible.

Understanding the funding

State annually calculates a “foundation budget

level*” based on:1.Enrollment2.Inflation

FactorCh70 State Aid

City Contribution

Foundation Budget Level

*The foundation budget reflects the state’s formula for an “adequate” education under the Education Reform Act of 1993 (as amended).

Understanding the FY10 Budget

Total FY10 Spending:

$264,355,365School Committee Appropriation

and SFSFto get to

foundation spending

* State Aid & City Contribution are reduced by Charter School Tuition

SFSF$15,900,327

Ch70 State Aid* & State

Charter School Reimburse-

ments

$165,835,069

City Contribution*$82,619,969

63%

6%

31%

Foundation Budget Level

FY10 BUDGET (Current Year)

Began with a $24 million Deficit

Revenue:State Underfunded Ch70: -$15,900,327 Chapter 70: -$ 3,081,185City Contribution: -$ 1,317,258Grant Indirect Charges: -$ 938,050 State Grants/Reimbursement: -$ 1,517,000Federal Grant Reductions: -$ 1,254,792Total Deficit: -$24,008,612

FY10 BUDGET

Solutions to balance FY10 Deficit

Sources of Funds:ARRA Funds – SFSF: $15,900,327ARRA Funds - IDEA: $ 4,199,498ARRA Funds - Title 1: $ 3,408,607*Administrative Reductions: $ 500,000Deficit Solutions: $24,008,432* Less required set-aside for mandated supplemental services.

ARRA - American Recovery and Reinvestment Act of 2009SFSF – State Fiscal Stabilization FundsIDEA – Individuals with Disabilities in Education ActTitle 1 - Improving the Academic Achievement of the Disadvantaged

Use of Stimulus Funds (Summary)

Year Amount UseFY09SFSF $18,981,512 9c Cuts

FY10SFSF $15,900,327 Ch70 CutIDEA/Title 1 $ 8,182,969 Balance Budget

FY11IDEA/Title 1 $ 8,189,969 Balance Budget

TOTAL $51,247,777 RECOVERY!

Use of Stimulus Funds (gb# 9-159)

Looking Back… April 1, 2009

Where we are today…

Student Enrollment: 23,416+290 from 10/1/08

Elementary Class Size:163 (29%) classes with 23-26 students 41 ( 7%) classes with 27 or more students.

Good News:Good News:

Challenges:Challenges:

Looking Back… April 1, 2009

FY11 BUDGETPreliminary Estimates

Estimated FY11 Foundation Budget

Ch70 State Aid

City Contribution

Foundation Budget Level

Enrollment: (+290*): $ 3,139,250Inflation (3%): $ 8,237,850Expected Growth: $11,387,925

State determines the local community’s ability to pay and Chapter 70 state aid is used to get the community to the foundation budget

* Estimated amounts as of 10/15/09

From $264.4m to $275.7 m

How the WPS budget would change in a “normal” year:

FY11 BUDGET Preliminary Estimates

Estimated FY11 Cost Increases:Health Insurance(80/20 contribution) $3,100,000Student Transportation $2,500,000 Employee Salaries (no raises*) $2,000,000 Special Ed. Tuition $1,000,000 Retirement Assessments $ 850,000Charter School Tuition: $ 520,000All other cost areas: $ 500,000Total Est. Cost Increases: $10,470,000

* Each 1% in employee raises (all groups) = $1.7 million

FY11 BUDGET Preliminary Estimates

Estimated FY11 Revenue Change:State Fiscal Stabilization -$15,900,327Charter School Reimbursements* -$ 1,800,000Chapter 70 State Aid** $ 0 City Contribution (state formula) $ 2,200,000Total Est. Revenue Change: -$15,500,327

*Charter Reimbursement based on state formula (Chap 46 of the Acts of 1997)** See Next Slide for State Aid Detail

FY11 BUDGET Preliminary Estimates

Chapter 70 State Aid Issues: Budget model assumes level funded Chapter

70 aid (98% of FY09 funding level) Massachusetts Budget & Policy Center

estimates FY11 State budget gap at $2.24 billion

Each 1% change in Chapter 70 = $1.8 million Inflation factor year-to-date is -0.5%

The budget model assumes that the state will not be able to meet the foundation budget for each community.

FY11 BUDGET Preliminary Estimates

Estimated FY11 Budget Status:

Revenue Change: -$15,500,327Expenditure Increases: $10,470,000Preliminary Budget Deficit: -$25,970,327

FY11 BUDGET Preliminary Estimates

Other Budget Items to Watch:

• State Grant Funding ($8.3m)

• Circuit Breaker Reimbursement ($1.8m)

• Charter School Reimbursement Level ($4.6m)

• Federal Grant Funds & Census Data ($38.6m)We expect that the state will make every attempt to fully fund the foundation budget. Watch the state grant items in the budget process; they could be reduced to achieve foundation level spending.

FY11 BUDGET Preliminary Estimates

Legislative suggestions to address deficit:

• Redistribute Chapter 70 allocation• No new charter schools• Freeze special education tuition rates• Eliminate unfunded private, parochial,

charter, and non-resident vocational transportation mandate

• Revise charter school funding formula• Support Pension Schedule Adjustment

Looking Forward to FY12…

The FY11 Budget uses$8.2 million

in IDEA and Title 1 stimulus funds.

These funds will not be available in FY12

Starting with the Student

Prioritize & Focus on ResultsPrioritize & Focus on Results

Continuous improvementand learning for adults

Continuous improvementand learning for adults

21st Century College and Workplace Readiness21st Century College and Workplace Readiness

Increase Return on Investment

Increase Return on Investment

Delivering on the Promise

• Enlist all stakeholders to engage with the district’s focused agenda for improved district, school and student results

• Link high levels of adult learning throughout the organization to high levels of student learning

• Use systems of accountability to increase the value of WPS for students, families, and the community

A Student-Centered Budget

The Administration has started to work collaboratively with the School Committee and our school community to develop FY11 budget priorities and recommendations resulting in a student-centered balanced budget.

NEXT STEPS…

• FY10 State Budget Watch (9c cuts expected by November 4)

• Joint meeting with City Council – November 10th at 5:30pm in City Council Chamber

• School Committee and school community priority setting

• Governor’s Budget – Mid-January

Report of the Superintendent

FY11 BUDGETPreliminary Estimates

Transforming Challenge into Opportunity

October 15, 2009

This presentation is available at www.worcesterschools.org