FY20 Preliminary Budget Analysis of Governor’s Proposed Budget and Recent Legislative Foundation Budget Proposals Report of the Superintendent February 28, 2019
FY20 Budget Themes Modest Inflation Growth (3.75%) Overall Enrollment Growth Initial Foundation Budget Funding Proposals 2
FY20 Budget Total Foundation Budget Foundation Budget Funding FY20 Preliminary WPS BUDGET 3
FY20 Foundation Budget Foundation Budget FY20 Preliminary Total Foundation Funding Budget WPS BUDGET Foundation Budget Amount FY20 Proposed: $374,554,603 as contained in FY20 Governor’s Budget FY19 Current Year: $353,662,082 Increase: $20,892,521 5.9% increase 4
FY20 Foundation Budget Foundation Budget FY20 Preliminary Total Foundation Budget Funding WPS BUDGET Change from FY19 Amount Chapter 70 $17,266,265 6.8% City Contribution: $3,626,256 3.6% Increase: $20,892,521 5
FY20 Governor’s Budget Change from FY19 Amount Inflation (3.75%) $13,262,328 Enrollment Change (189): $1,059,407 Economically Disadvantaged $1,233,667 Enrollment (310): Base Foundation Change: $15,555,402 FBRC New Funding (next slide) $5,337,119 TOTAL $20,892,521 6
FY20 Governor’s Budget FBRC New Funding* Amount Employee Benefits $2,943,186 English Learners $2,148,634 Special Ed. – Out of District $258,326 Early College/Career Pathways $160,233 Eco Dis. & Special Ed. In district* -$173,260 TOTAL $5,337,119 * Eco Dis Rate Change Adjusted for Inflation and Excludes Employee Benefits Portion of Rate Change. Special Education In District Rate adjusted for inflation 7
FY20 Foundation Budget Price Deflator Index for State & Local Governments 7.00% 5.86% 6.00% 5.18% 5.00% 4.66% 4.00% 3.90% 3.74% 3.75% 4.00% 3.65% 3.47% 3.04% 2.83% 2.80% 2.64% 3.00% 1.92% 1.78% 2.00% 1.55% 1.50% 1.34% 1.11% 0.86% 1.00% 0.34% -0.22% 0.00% 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 -1.00% -2.00% -2.20% -3.00% 8
WPS Enrollment Trends Enrollment Trends: 1 year: 1.4% 5 year: 2.5% 10 year: 10.0% 30,000 25,402 25,188 25,021 24,769 24,777 24,959 25,425 24,191 25,000 24,360 24,001 23,114 20,000 15,000 10,000 5,000 0 08 09 10 11 12 13 14 15 16 17 18
WPS Enrollment Trends Grades Enrollment Change from Last 10/1/18 Year Pre-School 1,244 290 13,394 -69 Grades K-6 Grades 7-8 3,561 147 7,142 12 Grades 9-12 Total 25,341 380
Economically Disadvantaged Students Enrollments – Worcester and State Totals Worcester State 25,000 450,000 19,651 376,810 400,000 20,000 17,320 17,630 312,203 314,776 339,256 342,575 16,619 16,076 350,000 +310 300,000 +701 15,000 +543 -3,575 250,000 10,000 200,000 150,000 5,000 100,000 50,000 0 0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
Foundation Budget FY20 BUDGET Foundation Budget FY20 Preliminary Total Foundation Budget Funding WPS BUDGET Change from FY19 Amount Foundation Budget $20,892,521 Less Charter Schools -$2,234,960 and School Choice: -$1,922,753 Less One-Time Impact Aid Budget Increase: $16,734,808 4.8% increase 12
FY20 BUDGET PLANNING Foundation Budget FY20 Preliminary Total Foundation Budget Funding WPS BUDGET Develop Level Service Cost Increases Address Enrollment Shifts & Changes Target New Funds to Foundation Budget Gaps 13
FY20 BUDGET PLANNING Foundation Budget FY20 Preliminary Total Foundation Budget Funding WPS BUDGET • School-based Resource Allocation Process is Ongoing . • Develop Budget Recommendations using district’s Seven Point Plan For Advancing Student Achievement and Program Sustainability and Address Foundation Budget Spending Gaps • Monitor State Budget & Foundation Budget Bills 14
Recent Foundation Budget Proposals Summary of Major Factors and Estimated Impact on the Worcester Public Schools 15
Recently filed foundation budget legislation • Governor House Bill 70 • Senate Bill 238 & House Bill 586 • House Bill Number 576 16
FINDINGS AND RECOMMENDATIONS FOUNDATION BUDGET REVIEW COMMISION Health Insurance Special Education English Learners Low Income 17
Health Insurance Findings Recommendations • Actual spending “ far • Adjust the employee exceeds ” current health insurance rate to foundation budget the state’s GIC rate. allotment by more than • Add “Retired Employee 140%. Health Insurance” to • Current formula does not foundation budget. factor cost for retiree • Change inflation factor to health insurance annual change to GIC rates. . . 18
Special Education Findings Recommendations • Increase the assumed in- • Districts spend “ far more ” district special education than the current enrollment. foundation budget • Increase the out-of-district allotment for out-of- cost rate to capture the total costs that districts district placements by bear before circuit breaker more than 59%. is triggered. • The current assumed in- . district special education enrollment is less than the actual statewide enrollment . 19
Other Recommendations of the FBRC: Low Income: The FBRC recommendation was to increase the increment to 50%-100% of extra funding. ELL Increment : The FBRC recommendation is to change the per pupil rate from a fixed rate to an increment similar to the increment for low income students. The FY19 final state budget converted the rate to an increment (at 65% of recommended level) 20
Worcester’s Spending Gaps $ in millions $70.0 $63.9 $62.1 $60.0 $50.0 $34.9 million gap $34.6 million gap Actual Spending Actual Spending $40.0 $29.0 $27.5 $30.0 Foundation Foundation $20.0 Budget Budget $10.0 $- Health Insurance Special Education 21
Worcester’s Spending Gaps Spending Staffing ($ in millions) $20.8 Operations & Maintenance $35.9 348 Special Education Aides 73 $2.5 517 Special Education Teachers Teacher PD 119 $5.1 73 Non-Special Education Aides 199 $7.5 Instructional Materials $13.9 1,612 Non-Special Education Teachers 2,335 0 10 20 30 40 Actual Spending Formula Provides 0 500 1,000 1,500 2,000 2,500 22
Special Education Item/Current Governor H70 Senate Bill 238 and House Bill House Bill 586 576 4.0% and 4.75% for 4.0% and 5.0% for 4.0% and 5.0% for Special Education: Assumed In-District Vocational Students Vocational Students Vocational Students Rate Worcester Increase Worcester Increase Worcester Increase 3.75% and 4.75% for $1.6 million $1.7 million $1.7 million Vocational Students Special Education: Out- Assumed at 1% of Assumed at 1% of Assumed at 1% of of-District Rate enrollment at 3 times enrollment at 3 times enrollment at 3 times the average per pupil the average per pupil the average per pupil Assumed at 1% of rate (beginning in rate ($35,632.95) rate ($35,632.95) enrollment at FY21)($35,632.95) $28,428.66/student Worcester Increase Worcester Increase Worcester Increase $1.8 million $1.8 million $1.8 million Worcester’s Current Spending Gap: 23 $34.6 million
Foundation Budget Commission Report Special Education Recognition: Average expenditure per pupil exceeds foundation budget, even upon adoption of recommendations, by $700 million*. *Page 15 of the FBRC Report 24
Employee Benefits Current Governor H70 Senate Bill 238 and House Bill House Bill 586 576 Employee Health Additional increment in Per pupil rates Per pupil rates Insurance Rate: Average FY18 (added $66 increase 35%-81% increase 20%-75% active employee premium million statewide) above FY20 Rates* above FY20 Rates* for all GIC plans for the under this plan under this plan previous 3 fiscal years. FY19 increment raised by 14% toward total * FY19 + 3.75% inflation Retired Employee Health * FY19 + 3.75% inflation increase Insurance Rate: Weighted Adjusted annually by average of GIC plans for all Adjusted annually by the increases in employer retiree plans the previous average annual rate of premium costs for 3 fiscal years. growth for the average municipal participants in premium of all GIC plans state GIC Foundation Benefits: over the past three years. Allotment equal to 1.29 x (Employee Health Worcester Increase Worcester Increase Insurance Rate x # of $15.3 million** $18.1 million Active Employees) + **Excludes eco dis Retired Employee Health rates Insurance Rate x # of district retired employees. Worcester’s Current Spending Gap: 25 $34.9 million
English Learners Item / Current Governor H70 Senate Bill 238 and House Bill House Bill 586 576 Increment above base: Increment above base: English Learners Increment above base: $2,537.49 PK $1,177.18 (rate per student) PK-5: $2,177.17 All other grades: 6-8: $2,721.46 $2,354.36 9-12: $3,265.74 Created an increment rate implemented in Eliminates “students FY19, formerly as base who have already met rate. Increment is 65% or exceeded state exit of FBRC goal rates requirements” Worcester Increase Worcester’s Increase Worcester Increase* Worcester Increase* $2.2 million $3.3 million $2.6 million $1.1 million *Assumes no enrollment *Assumes no enrollment change from FY19 change from FY19 26
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