West Springfield Public Schools

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West Springfield Public Schools
FY 2010 Budget Informational Update for
Staff March 12, 2009
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Budget preparation timeline
Prelim House budget version released
Deliberations to approve final State Budget
March
April
May
July 1st
Nov-Feb
21 Days
Town Council votes on budget
21 Days
Publish in news-paper
School Committee Mtg, Vote
Mayor receives budget from School Comm
Mayor sends budget to Town Council
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How school budgets are funded
School Budget35.4M General Fund (LEA)
State Aid17.7 M
Local Contribution 17.7M
Grants 3.6M
Revolving 1.4M
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Next years budget parameters
Governors proposed FY 2010 budget reduces local
aid by 28.5 -1,273,440 proposed for Town of
West Springfield
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School Department share of reduction expected to
be 57 or 725,860
FY 2010 negotiated school staff salary increases
total 1,369,000

Additional revenues required to fund a
level-service budget for the School Department
budget for FY 2010 2,094,860

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A word about Chapter 70 State Aid for Education
When the Governor says there will be no
reductions in Chapter 70 Aid that does NOT mean
that School Department budgets will not be cut.
Most Towns exceed the required minimum funding
for education and can still cut their school
budgets without breaking State law.
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What we dont know yet
FY 2010 Budget Proposals from MA House and Senate
State Budget unlikely to be finalized until
June Educational elements of the Federal
Stimulus Package Expected increases in Title 1
and SPED funds
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Other unknown variables
Funding levels for other State and Federal
Grants Health Insurance Costs for FY
2010 Likely duration of economic recession
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?
Putting together an operating budget in this
context is like trying to solve a jigsaw puzzle
when many of the pieces are missing.
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Mayors directions for FY 2010 Budget Requests
Submit three budgets 1. Level Funded Budget 2.
5 Reduction 3. 10 Reduction
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Level Funded Budgetnot the same as Level Service
All contractual salary increases (COLA plus step
raises) would have to be absorbed within the
proposed budget. All union contract settlements
for FY 2010 to date have been at 3.5.
Estimated cost 1,369,000
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Level-Service Budget
The Budget Subcommittee of the School Committee
published a level-service FY 2010 budget in the
West Springfield Record. This budget represents
a 3.9 increase over FY 2009 funding.
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FY 2010 Budget Scenarios
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FY 2010 Budget Reductions
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Notes about proposed cuts
Cuts are not carved in stone they are proposals
for meeting different budget target
scenarios Some may prove impractical Some may
need more research We may be able to identify
less painful alternatives given more time
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FY09 Actual Budget
Personnel as of Budget
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FY09 Actual Budget
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Cuts for Level-Funded Budget (Tier 1)
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Cuts for Level-Funded Budget (Tier 1)
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Cuts for Level-Funded Budget (Tier 1)
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Additional Cuts for 5 Budget Reduction (Tier 2)
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Additional Cuts for 5 Budget Reduction (Tier 2)
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Additional Cuts for 5 Budget Reduction (Tier 2)
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Additional Cuts for a 10 Budget Reduction (Tier
3)
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Additional Cuts for 10Budget Reduction (Tier 3)
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Notes about proposed cuts
Cuts are not carved in stone they are proposals
for meeting different budget target
scenarios Some may prove impractical Some may
need more research We may be able to identify
less painful alternatives given more time
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Employee Concessions

• If the unions and other employees do not give
  back the 3.5 increase negotiated for FY 2010
  (which is counted as a Tier 3 cut) that would
  result in the need for further staff cuts
  equivalent to twenty seven (27) teachers at the
  Bachelors Step 1 rate.

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Unemployment Costs - I

• The Town is self-insured for the cost of
  unemployment compensation.
• The staff cuts listed above under the various
  budget scenarios do NOT include additional
  lay-offs that would be necessary to pay for the
  unemployment costs.

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Unemployment Costs - II

• Typically for every two (2) comparable positions
  that are cut, a third must also be cut to save
  enough money to pay the unemployment compensation
  costs for all three (3) positions.

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Federal Stimulus Funding for Education

• The Federal stimulus program (American Recovery
  and Reinvestment Act) includes over 100 billion
  nationally for education (including higher
  education).
• At this point, it is our understanding that 800
  million of that funding will come to Massachusetts

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Federal Stimulus Funding for Education
(continued)

• Of the education money earmarked for
  Massachusetts we believe that West Springfield
  may receive as much as 2 million.
• However, that 2 million will be received over
  two (2) fiscal years, FY 2010 and FY 2011.

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Federal Stimulus Funding for Education
(continued)
Money will be distributed through two established
programs - Title I and I.D.E.A. Both programs
carry strict limitations on what the funds may be
spent on and prohibitions on using funds to
supplant local educational spending.
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Federal Stimulus Funding for Education
(continued)

• Title 1 provides funding for schools that have
  high concentrations of children living in
  poverty.
• I.D.E.A. (Individuals with Disabilities Education
  Act) provides funding for programs for students
  with special needs.

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Federal Stimulus Funding for Education
(continued)

• We are still awaiting details on the funds that
  will be made available for West Springfield.
• We are also awaiting clarification on how those
  funds may be applied. At this time there is no
  indication that spending rules will be relaxed.

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Next Meeting

• The next major milestone in the budget process is
  when the School Committee votes on the budget to
  send to the Mayor on March 24th.
• The Mayor then sends his budget proposal to the
  Town Council by May 1st.
• That budget cannot be increased by the Council so
  we will know then what our maximum FY 2010 budget
  number will be.
• Our next informational meeting will likely be
  scheduled during the second week in April.

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FY 2010 Budget Planning

• Questions?