1. Financial impact of MEA contract What the city finance officer and school business administrator really said about the projected costs

2. This year’s budget impact Salary increase: $3,108,000 Projected reduction in district’s cost of health insurance: $4,131,000 Increase in district Social Security cost*: $238,000 Increase in state retirement costs: $487,000 Projected savings $298,000

3. Next year’s budget impact Salary increase: $1,718,000 Reduction in district insurance premium payments: $512,000 Increase in district’s cost of health insurance: $607,000 “Carryover savings” from first year of contract: $298,000 Increase in district Social Security cost*: $131,000 Increase in state retirement costs*: $269,000 Increase in city retirement costs*: $56,000 Total added cost in FY 17 (which is the coming fiscal year): $1,971,000

4. FY 2018’s budget impact Salary increase: $1,760,000 Reduction in district insurance premium payments: $570,000 Increase in district’s cost of health insurance: $629,000 Increase in district Social Security cost*: $135,000 Increase in state retirement costs*: $276,000 Increase in city retirement costs*: $32,000 Total added cost in FY 18: $2,262,000

5. Total projected contract cost & Tax Cap impact (whole city) Current year:$ 298,000 Next year:$1,791,000 Final year:$2,262,000 Sub Total:$4,233,000 Next year$1,996,000 (205,000) Final Year$2,016,000 ($246,000) Sub Total$$4,012,000

6. Other school budgetary factors Projected tuition revenue losses: – Next year: $ 1,062,000 Final year: $ 289,000 Total: $ 1,351,000 Projected debt service increases: – Next year: $ 51,000 Final year: $ 451,000 Total: $ 502,000 Total projected cost increases: $1,853,000

7. Other school budgetary factors Projected savings from retirements: – Next year: $1,200,000 Final year: $1,200,000 Total: $2,400,000 Excess savings after cost increases (savings – costs) $547,000 Total projected increase in “city” budget expenses: $1,265,000 Projected deficit on non contract items: $718,000 (not relative to tax cap)