1. WORCESTER PUBLIC SCHOOLS FY2008 BUDGET UPDATE & FY02-FY07 History FY2008 BUDGET UPDATE & FY02-FY07 History April 5, 2007

2. Worcester Public Schools FY02-FY07 Budget 5-Years of Budget Deficits and Reductions Totaling $50.1 million

3. Worcester Public Schools FY02-FY07 Budget Reductions Year Baseline Need Actual Budget Budget Deficit FY03$235,800,000$224,454,032$11,345,968 FY04$237,507,032$228,861,500$8,645,532 FY05$242,361,500$236,557,443$5,804,057 FY06$249,624,443$244,361,728$5,262,715 FY07$265,428,363$259,159,595$6,268,768 General Fund Reductions:$37,327,040 Federal And State Grant Reductions:$12,727,826 TOTAL BUDGET REDUCTIONS:$50,054,866 Actual Annual Budget Deficits

4. Worcester Public Schools FY02-FY07 Reason for Deficits Revenue Losses:$ m State Aid (Career Pathways)$8.80 State Grant Funds$8.90 Federal Grant Funds$3.90 Enrollment Changes$4.70 Total Revenue Loss$26.30 Cost Increases Greater than Inflation Health Insurance$15.80 Charter School Tuition Assessments$3.20 Special Education Tuition$2.00 Retirement, Utilities, & Transportation$2.80 Total Cost Increases > Inflation$23.80 Total Revenue Loss & Cost Increases:$50.10

5. Worcester Public Schools Enrollment Changes Total Students in Worcester (All Schools) Total WPS Students

6. Worcester Public Schools Enrollment Changes 2002-20072002-2007

7. Budget CategoryFY02FY07 $ Change % Change Employee Salaries$146,661,084$155,295,541$8,634,4575.9% Health Insurance$19,140,964$38,381,170$19,240,206100.5% Special Education Tuition$7,206,250$12,234,722$5,028,47269.8% Retirement Assessment$6,820,169$10,292,369$3,472,20050.9% Student Transportation$6,436,166$8,088,261$1,652,09525.7% Building Utilities$5,448,949$7,457,058$2,008,10936.9% Instructional Supplies & Materials$4,322,990$2,332,980-$1,990,010-46.0% Building Maintenance$3,339,200$2,291,950-$1,047,250-31.4% All Other OM Accounts$7,712,007$5,399,923-$2,312,084-30.0% Charter & School Choice Tuition$7,913,300$17,385,621$9,472,321119.7% Total Budget$215,001,079$259,159,595$34,686,19516.1% FY02-FY07 Budget Reductions Change in Budget Spending FY02 to FY07

8. Worcester Public Schools FY02-FY07 Budget Reductions Spending on Direct Instructional, Fixed Costs, and Other Areas General Fund Budget FY94-FY07

9. Worcester Public Schools FY02-FY07 Budget Reductions FY04 Adams Street East Side Preparatory School Granite Street School Greendale School Doherty Satellite Program FY07 Harlow Street Fundamental School New Ludlow School Mill Swan Communication Skills Center Multiple Intelligences School at Dartmouth Street Closed 8 Schools Closed 8 Schools :

10. Worcester Public Schools City Funded Positions 01-0206-07Change % Change DAB Administrators2518-7-28% Bldg. Administrators8276-6-7% Teachers2,1321,870-262-12% Inst. Assistants235125-110-47% Bus Monitors4925-24-49% Crossing Guards118113-5-4% Custodians173155-18-10% School Plant4644-2-4% Admin. Clerical8570-15-18% School Clerical9380-13-14% Non-Inst Support6455-9-14% Totals (City Budget)3,1022,631-471-15% Grant Funded Positions676575-101-15% TOTAL POSITIONS3,7783,206-572-15% FY02-FY07 Budget Reductions Change in Funded Positions

11. Worcester Public Schools FY02-FY07 Budget Reductions Reduced per pupil instructional supplies & materials by 77% $130 in FY02 to $30 in FY06 Reduced funding for instructional technology by nearly 85% from $1.2 m in FY02 to $0.2 million in FY07 Eliminated extended day programs at 10 schools Reduced pre-school from full day to half day Significant reductions in staff development, building maintenance, athletics, and fine arts

12. Worcester Public Schools FY08 BUDGET The cost to maintain the FY07 level of service…

13. FY08 Budget - Expenditures General Fund Budget ExpendituresFY07 Budget FY08 Level Service$ Change % Change Employee Salaries$154,613,257$159,599,852$4,986,5953.2% Health Insurance$39,063,454$42,850,445$3,786,9919.7% Special Education Tuition$12,234,722$12,984,722$750,0006.1% Retirement Assessment$10,292,369$10,732,868$440,4994.3% Student Transportation$8,088,261$8,866,161$777,9009.6% Building Utilities$7,457,058$7,718,297$261,2393.5% Instructional Supplies$2,332,980 $00.0% Building Maintenance$2,291,950$2,453,948$161,9987.1% All Other OM Accounts$5,399,923$5,264,056-$135,867-2.5% Total Expenditures$241,773,974$252,803,329$11,029,3554.6%

14. Worcester Public Schools Tuition Assessments: FY07 BudgetFY08 Est.$ Change % Change Charter School Tuition Assessment$16,048,061$18,464,959$2,416,89815.1% School Choice Tuition Assessment$1,337,560$1,424,203$86,6436.5% Total Tuition Assessments$17,385,621$19,889,162$2,503,54114.4% FY08 Budget Tuition Assessments

15. Worcester Public Schools FY08 Budget Expenditure Summary FY07 BudgetFY08 Est.$ Change % Change Total WPS Expenditures$241,773,974$252,803,329$11,029,3554.6% Total Tuition Assessments$17,385,621$19,889,162$2,503,54114.4% Total$259,159,595$272,692,491$13,532,8965.2%

16. Worcester Public Schools FY08 Budget REVENUE PROBLEM Structural Deficit: Funds included in the FY07 Budget that will not be available in FY08: Funding SourceAmount Federal Grant Funds -$5,434,994 City Funds -$2,500,000 Ch70 State Aid (Enrollment change) -$4,186,262 Impact Aid Reserve -$505,255 TOTAL-$12,626,511

17. Worcester Public Schools FY08 Budget State Aid FY07 BudgetFY08 Est. $ Change % Change Chapter 70 State Aid$167,480,913$172,443,667$4,962,7543.0% Governor’s Budget

18. Worcester Public Schools FY08 Budget City Contribution FY07 BudgetFY08 Est. $ Change % Change Base Level$84,904,142$88,135,666$3,231,5243.8% Additional Contribution - WPS Capital $1,000,000$0-$1,000,000-100.0% Additional City Contribution - City Funds $1,000,000$0-$1,000,000-100.0% Additional Contribution - WTHS Moving Costs $500,000$0-$500,000-100.0% Total City Contribution$87,404,142$88,135,666$731,5240.8%

19. Worcester Public Schools FY08 Budget Other Revenues FY07 BudgetFY08 Est. $ Change % Change State Charter School Reimbursement$3,649,540$4,950,704$1,301,16435.7% PL 874 Impact Aid Reserve Account$625,000$119,745-$505,255-80.8% Total Other Revenues$4,274,540$5,070,449$795,90918.6%

20. Worcester Public Schools FY08 Budget Total General Fund Revenue FY07 BudgetFY08 Est. $ Change % Change Chapter 70 State Aid$167,480,913$172,443,667$4,962,7543.0% City Contribution$87,404,142$88,135,666$731,5240.8% Other Revenues$4,274,540$5,070,449$795,90918.6% Total Revenues:$259,159,595$265,649,782$6,490,1872.5%

21. Worcester Public Schools FY08 Budget General Fund Deficit FY08 Budget DeficitAmount Available Revenue $265,649,782 Level Service Cost $272,692,491 TOTAL-$7,042,709 FY08 Budget DeficitAmount Revenue Change $6,490,187 Cost Change $13,532,896 TOTAL-$7,042,709

22. Worcester Public Schools FY08 Budget State & Federal Grants FY07 BudgetFY08 Est.$ Change % Change Federal Grant$29,426,041$23,991,047-$5,434,994-18.5% State Grant$5,601,045 $00.0% Total Grant Revenue$35,027,086$29,592,092-$5,434,994-16% Grants Ending: $3,574,646 At 10% Reduction: $1,860,348 Total Reductions $5,434,994

23. Worcester Public Schools FY08 Budget General Fund & Grants -$ 7,042,709 General Fund: -$ 7,042,709 Grant Funds: -$ 5,434,994 Total Reductions -$12,477,703 Governor’s Budget

24. Worcester Public Schools FY08 Budget General Fund & Grants -$7,042,709 General Fund: -$7,042,709 House/Senate Ch70 : $1,581,647 Total Reductions -$5,461,062 Original Deficit: -$12,477,703 $1,581,647 House/Senate Ch70 $1,581,647 Revised Reductions -$10,896,056

25. Worcester Public Schools BALANCE THE BUDGET GENERAL FUND Example of Reductions needed to balance the budget deficit Reduce 104 Teacher Positions$5,445,989 Reduce Instructional Supplies$708,420 Reduce 15 School-Based and Central Office Administrative and Support Positions$565,000 Reduce After School and Enrichment Programs$323,300 Total Possible Budget Reductions:$7,042,709

26. Worcester Public Schools BALANCE THE BUDGET GENERAL FUND TEACHER POSITIONS 33K-6 Classroom Teachers & Itinerants 3NCLB Positions 32Secondary Teachers and Middle School Librarians 15Student Support Services (Guidance, SAC, Psych) 15Full-Time Building Substitutes 6Special Education & Home and Hospital 104Total Projected Teacher Position Reductions

27. Worcester Public Schools BALANCE THE BUDGET FEDERAL GRANTS Example of Reductions needed to balance the budget deficit Reduce 55 Teacher Positions$2,495,724 Reduce Instructional Supplies$333,140 Reduce staff development and other grant funded non-salary services$2,606,130 Total Possible Budget Reductions:$5,434,994

28. Worcester Public Schools BALANCE THE BUDGET FEDERAL GRANTS TEACHER POSITIONS 11K-6 Classroom Teachers 11NCLB Positions 20Elementary Math and English Intervention Teachers 7Secondary Teachers 6Student Support Services (Guidance, SAC, Psych) 55Total Projected Teacher Position Reductions

29. Worcester Public Schools CITY MANAGER’S PROPOSALS FY2008 WPS BUDGET SHORTFALL(12,477,702) I.Program Reductions Cut Grant Funded Items Being Reduced5,434,994 Cut 28 Teacher Positions1,411,148 Reduce Instructional Supplies & Materials541,560 Postpone OPEB Liability825,000 II.Budget Reforms Prescription Drug Management425,000 III.Cost Recovery/Fee Changes Increase Athletic Gate Ticket Prices (by $1.00)20,000 Increase Student Lunch Price (by $0.20)120,000 CHANGE TO FY2008 BUDGET DEFICIT8,777,702 FY2008 WPS BUDGET SHORTFALL(3,700,000)

30. Worcester Public Schools CITY MANAGER’S PROPOSALS FY2008 WPS REVENUE FROM OPTIONS$3,700,000 RESTORES THE FOLLOWING: I.Program and Services 64 MORE Teacher Positions-$3,200,000 * 40 Elementary Teachers * 24 Secondary Teachers Supplies and Materials ($20 per pupil)-$500,000 TOTAL REDUCTIONS FROM BASELINE SERVICE$3,700,000

31. Number of Classrooms > 27 Students School Name27-2930+ School Name 27-2930+ ALL Elem30May St01 Belmont Street04McGrath21 Burncoat St Prep10Midland St03 Chandler Elem20Nelson Place40 Chandler Magnet10Norrback Av21 City View43Quinsigamond30 Clark St11Rice Square31 Columbus Park Prep11Roosevelt52 Elm Park20Tatnuck50 Flagg St50Thorndyke Rd51 Gates Lane30Union Hill10 Goddard School20Vernon Hill22 Grafton St21Wawecus Road21 Heard St10West Tatnuck21 Jacob Hiatt Mag20Worcester Arts30 Lincoln St02TOTALS6926

32. Worcester Public Schools CITY MANAGER’S PROPOSALS FY2008 WPS BUDGET SHORTFALL$(3,700,000) USE 60% of UNUSED LEVY CAPACITY TO MAINTAIN BASE LINE CITY SERVICES$3,700,000 OR ALTERNATIVES TO RAISING REAL ESTATE TAXES 1. Close Telecom Loophole$1,000,000 2. Approve Local Option Meals/Hotel$825,000 3. Section 18-Medicare Supplement Provision$675,000 4. PILOT ProgramTBD ALTERNATIVE REVENUE OPTIONS$2,500,000

33. STATE LEGISLATIVE SOLUTIONS ItemsWPSState LEP Increment ($150 per pupil )*$586,000$10.0 m Low Income Increment ($175 per pupil)* $2,600,000$57.0 m Increase Inflation Factor to actual 4.66% $400,000$5.6 m Increase Special Education from 3.75% to 4%* $1,177,000$31.0 m Change Charter School Funding Formula (2-yr phase in) $600,000$25.0 m TOTAL$5,363,000$128.6 m * In conjunction with other M.A.S.S. Proposals regarding the adequacy of Foundation Budget (phased-funding over 5 years)

34. Annual Budget Process Governor’s Budget February 28 Governor’s Budget February 28 House Budget April 11 House Budget April 11 Senate Budget May Senate Budget May Final State Budget June 30th Final State Budget June 30th STATE BUDGET SCHOOL COMMITTEE Community Input Session Community Budget Hearings June 7 & 21 Budget Hearings June 7 & 21 CITY COUNCIL Sets School Department’s Budget Based on City Manager’s Recommendation Sets School Department’s Budget Based on City Manager’s Recommendation End of April Final WPS Budget