Sue Flicop

The budget amount of $168,235,667 is not fully funded—approximately $1.8 million in revenue is unaccounted for at the moment. The FY2011 budget was based on several assumptions, including a 10% cut in state funding. It appears that the state cuts might be more modest—only 4%–which would add another $1.1 million back into the budget.

Additionally, the city, working with the school department, has identified some areas that might result in lower costs next year, including electricity, costs for one of the health plans, and worker’s compensation. If the rates and usage all fall favorably, another $600 – $700K would be added back to the budget, completing the $1.8 million shortfall.

With the caveat that there might be a need to reconsider the budget if the above changes do not appear, the School Committee voted unanimously to approve the $25 per semester increase in the 4th grade music fee. Then the School Committee voted unanimously to accept the Superintendent’s proposed FY11 budget as amended on March 25, 2010.

School Committee Budget Meeting

March 15, 2010

This budget meeting focused on the following non-instructional areas: School Committee; Central Staff; Human Resources; Operations; Transportation; Business, Finance & Planning; and Food Service.

School Committee: The overall budget amount increased 6.6%.
The legal assistance line item specifically covers the costs of collective bargaining and waiver and employment issues. The increase is related to the major ongoing negotiations in FY 11. [NOTE: all other legal matters are handled by the City of Newton law department.] The consulting budget item is lower this year than last, but is still higher than FY09.

Central Staff: This budget area is level-funded, and shows no change in any line item.

Human Resources: This budget area is increased by 4.5%, which is made up of several changes. First, the pay structure of long-term substitutes (i.e. those who cover for teachers on maternity leave) has been changed (reduced) to be more in line with other similar communities. At the same time, the number of ISS staff (basically short-term substitutes) has been increased to offset cuts in building aides. Next, health insurance costs have increased 5.6%, a modest amount compared to recent years. Finally, unemployment expenses are increased to cover expected changes in FY11. [NOTE: This amount was substantially underbudgeted for FY10.]

Operations: Line items related to the Operations office, custodial needs and maintenance are essentially level-funded. The move toward preventative maintenance will continue, with the addition of those buildings that are part of the ESCO program. There will be savings in utilities due to these ESCO projects, as well as the move to the far more efficient new Newton North High School.

Two risky areas are:
• The potential increase in maintenance costs as the Public Buildings Department experiences budget (and personnel?) cuts. This could potentially lead to an increase in the use of more expensive sub-contractors.
• The lack of contingency cash for major repairs. Today’s flooding and the expected related repairs and expenses are examples of the necessity of shifting dollars away from charter maintenance in times of unexpected damage.

NOTE: This led to a very depressing discussion about what is NOT being done to keep the schools in good condition due to lack of financial resources. On average, Newton Public Schools spends $1 per square foot for maintenance; the industry standard is between $2 and $4 per square foot.

Transportation and Business, Finance and Planning (BF&P): Recent retirements have led to a substantial restructuring in these departments to better meet the needs of the school system. Overall the savings total $65k, and create a stronger Transportation department and more efficient reporting and analysis within the BF&P department.

The transportation budget also shows a reduction in two buses for private school transportation–without a cut in service, as well as reduction in costs for summer staff.

Looking into the future:
• The increase in middle school students over the next two years will most likely lead to an increase in the number of buses needed.
• If grant opportunities present themselves, it might be possible to use a consultant.
• The increased parking fee at Newton South has pushed students to park along Brandeis Road, creating potentially dangerous situations. A look at the parking fee in the future was requested.

Food Service: In the past, the Ed Center has subcontracted out the management of food services, but not the labor. Five years ago, more changes were enacted in the way food was delivered. Last year, 75 lunch attendant positions were eliminated. Yet the food service area is still predicting a $993K loss. The FY11 budget calls for this subsidy to be reduced by approximately $500K.

This can be accomplished in two ways:
• Renegotiate the labor contract to significantly reduce labor expenses;or
• Subcontract out the entire management and operations, but still retain oversight.
The department has an obligation to negotiate with the union, and is hoping to have a solution in place by July 1.

School Committee Budget Meeting
March 11, 2010

Special Education: Eight changes in the FY11 budget were discussed tonight:

• Continue the alternative high school (Central High)
• Add 5 more integrated classrooms at 4 elementary schools (Memorial-Spaulding, Bowen, Mason-Rice, Countryside)
• Add two Special Educators at Bigelow Middle School to more fully integrate classes in all three grades
• Fund 2.5 social workers in the elementary schools (since the grant that funded the current 3 social workers runs out this year)
• Add a reading specialist
• Add two board certified Behavior Analysts
• Add two more SPED interns from Lesley College
• Reduce the number of aides

ELL (English Language Learners): The ELL budget proposal shows a 4.6% increase (approximately $110K). This reflects the increased number of ELL students, particularly at the elementary level, which has increased by 15% since 2008. If the numbers continue to grow (especially at the K-2 level), staff might be shifted from the middle and high schools to the elementary schools. Overall, there is no substantial change in this program.

Career and Tech Ed: The budget proposal shows a .7% increase with very little change in the program.

Curriculum and Instruction/Professional Development: While overall, this area is level funded, there are several changes in the budget book, including: the addition of 3 math coaches to complete coverage at the remaining elementary schools and the middle schools; the reduction in the Creative Arts & Sciences Director position to a .2 FTE; the reduction of theatre stipends at the high schools by $10,000; and the reduction of professional development expenses for high school department chairs and curriculum coordinators.

According to the discussion, these changes focus on building capacity to provide professional development (PD) within the system. This type of PD is site-based, sustained over time, and job-embedded. Examples include math coaches and literacy specialists.

The reductions were aimed at maintaining class size, which currently represents the best balance according to the presenters. An increase in class size to increase the PD budget would mean “backtracking” on class size at the elementary level; teachers teaching outside their subject at the middle school level; and a reduction in class offerings at the high school level.

The cuts that the presenters felt could be sustained without completely impacting the programs were in travel and conference expenses for department heads and curriculum coordinators, the mentoring program, and the Creative Arts & Sciences program.

FY112 Budget Presentation, March 4th, 2010

Overall, the Superintendent discussed the centrality of the classroom as a guide in creating the budget. In particular, the budget is based on five main areas of focus:

1. maintain FY10 class size
2. keep strong commitment to maintaining breadth of programming
3. continue initiatives
4. build on efficiencies and restructure operations for savings
5. have an innovative approach

The Superintendent and his staff started the process by looking at the School Committee’s budget guidelines and collaborating with the Mayor. They developed plans at several different revenue levels, considered enrollment trends, and prioritized system needs that focused on classroom teaching, teaching support and professional development.

In defining the magnitude of the problem, the Superintendent said that a maintenance of effort budget–doing the same thing this year as last year–would require a $7.4 million increase over last year’s budget. This is made up entirely of mandated costs–contracted staff costs and benefits, as well as increases in SPED tuition and transportation costs. However, the additional allocation from the Mayor was only $1.7 million. The Superintendent could not get to a budget that served the children of Newton with only $1.7 million more than last year. After meeting with the Mayor and his staff, they found a one-time reduction in the cost of health insurance that totaled $1.4 million. This new total of $3.1 million was the number that the proposed budget was built on–a 2.1% increase over FY10.

This leaves a gap of $4.3 million, of which $2.5 million will be found through efficiencies, new fees, some restructuring, and program initiatives. The remaining $1.8 million gap will hopefully be covered by state funding. If this amount is not received from the state, more revision of the budget will need to be made, meaning cuts in remaining areas. At the back of the budget book are changes that were already considered and rejected.

The Superintendent went through the list of proposed changes–I would add a link here, but I can’t seem to find the document online yet. In general, the savings at the elementary and high schools were from administrative reductions–mainly building aides at the elementary level, and reductions in assistant principals and executive secretaries at the high schools. There are small shifts in staff at the elementary and middle schools to reflect enrollment changes. The math coach program is being expanded at both the elementary and middle schools.

Regarding student services, 10 SPED aides and 3.5 Pre-K aides were cut, but the integrated program was expanded. Social workers and the Lesley University intern program were increased as well. There were many other changes in SPED, which will be discussed at the Thursday, March 11th, meeting.

Three fee programs were discussed: the increased use of school buildings for the international language schools; the increased fees for the 4th grade instrumental music program; and a new fee-based program called Early Morning Drop Off, where for $8 per student per day, parents can drop off their child at 7:30 am at their school. This last program is budgeted to bring in $189,000 next year.

Changes to the food service program leading to approximately $500,000 in savings were predicted. The Superintendent warned that reliance on these savings, as well as the income from the Early Morning Drop Off program, both of which are only estimates, is risky. If these numbers change, it is possible that more cuts will be necessary.

Liz and I will keep you updated as the School Committee reviews every aspect of the budget in far greater detail.