1. Shrewsbury Public Schools Fiscal Year 2013 Initial Financial Projection

2. 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

3. 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

4. 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”

5. 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)

6. 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

7. Conditions & Assumptions Assuming no changes to current fee structure Assuming level funding from entitlement grants

8. Conditions & Assumptions Remaining federal stimulus funding will be exhausted Remaining Education Jobs funding will be exhausted

9. Conditions & Assumptions Assuming 65% reimbursement rate for state Circuit Breaker special education funding Assuming no Circuit Breaker reserves to carry forward

10. 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

11. 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

12. 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

13. 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

14. Variables State funding levels (Chapter 70, Circuit Breaker) Town revenues Evolution of current fiscal year Evolution of projections to known costs

15. 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