MINUTES OF SPECIAL MEETING

SUPERINTENDENT'S FY06 BUDGET PRESENTATION

MARCH 7, 2005

DAY MIDDLE SCHOOL, AUDITORIUM, 7:00 P.M.

 

 

PRESENT:               Chairperson Anne Larner, Vice-Chairperson Dori Zaleznik, Gail Glick, Susan Heyman, Patricia Kellogg, Marc Laredo, Nancy Levine, Reenie Murphy, Mayor David Cohen, Superintendent Jeffrey Young, Charlie Heidlage, student representative – Newton North High School

 

ABSENT:                  student representative – Newton South High School

 

                                   

CALL TO ORDER

 

Chairperson Anne Larner called the meeting to order at 7:15 p.m.  She noted that this is the first of several budget meetings that will occur over the next month and tonight’s meeting is devoted entirely to the Superintendent’s presentation of the recommended budget.  This is going to be a particularly difficult period for everyone and she asked people to follow the process closely.  The Committee is very interested in public feedback and wants to maximize the resources that are available to the schools for next year.  The target they have asked the Superintendent to reach is $1.2 million over the Mayor’s allocation and they will need the public’s assistance in trying to obtain those extra funds from the State.  At the end of the meeting she will go over the budget schedule and agenda items.  On April 11th there will be a meeting with their legislative delegation about the need for additional funding.

 

 

SUPERINTENDENT'S FY06 BUDGET PRESENTATION

 

Superintendent Jeffrey Young began the presentation by first acknowledging all the hard work of the central staff, principals, curriculum coordinators, and department heads, in helping him develop this budget.  He especially thanked Sandra Guryan, Assistant Superintendent for Business, Finance & Planning, and her staff, for their countless hours in assembling this document.  Finally, he thanked the School Committee for creating clear and thoughtful budget guidelines, which helped frame their work. 

 

The budget that he will present this evening is full of challenges, but also not without pride in the strengths of the system.  There are tough decisions ahead and the reductions they will be forced to make will not be easy, but they will still have a strong and viable system.  The goals for this year are to maintain a high quality of education while also living within their means.

 

In order to maintain a maintenance of effort budget, which means retaining the exact same program next year as they have this year, would cost $142.5 million, or an additional 7.8%.  Some will argue that they should be looking over and above maintenance of effort, but he will not be addressing that tonight.  The School Committee has directed him to bring in a budget of $137.7 million, or a 4.2% increase over the current budget.  This amount results in a $4.8 million gap.

 

There are four categories associated with maintenance of effort increases:  contracts & benefits, staffing adjustments, fixed and mandated costs, and other program additions. 

 

They need $7.6 million in new money to fund contracted requirements next year, which includes salary increments, changes in degree status, and all benefits.  Health insurance alone will cost the City an additional 11-12% next year. 

 

Staffing adjustments actually favor the system in terms of turnover savings, which is when a senior employee leaves the system and a less experienced teacher comes in at a lower salary.  They anticipate $900,000 in this area.  The other staffing adjustment relates to a  savings due to an increase in the METCO grant, of which they will apply a greater portion toward general school use.  Total staffing adjustments favor the system by $1 million. 

 

The fixed and mandated costs, of which they have no control over, include categories such as utilities, tuition for special education and career & technical education students, and contracted services required by law.  This category will require an additional $2.6 million. 

 

With regard to the other program additions category, they are adding to the budget this year funding to ensure the completion of the purchasing of math and science textbooks, which will culminate the work of the five-year curriculum revision cycle in these disciplines.  They also anticipate increases in special education, particularly around the preschool program, as they have continued to see an influx of students in this area, and in the English Language Learners Program.  Total increases in this area are $1,100,000.

 

The total maintenance of effort increases for FY06 is $10.3 million.  This amount does not allow for more staffing that could assist in class size efforts, additional textbooks and materials beyond the two subjects previously discussed, changing the per pupil allocation,  any new educational initiatives or professional development.  The one area they have held harmless and not touched in three years is charter maintenance.  This account continues to be level-funded, so as not to defer necessary maintenance, which will only inevitably become a larger capital problem. 

 

The $4.8 million gap does not allow them to reach maintenance of effort level.  Since the Override, when they said they would need annual increases of 5-6% in order to maintain program, they have instead seen increases of 2.1% in FY04, 3.8% in FY05 and 4.2% in FY06.  In order to manage during this time period and achieve efficiencies they have done the following: 

 

·        reorganized the Education Center and cut staff by 14%

·        reduced an assistant superintendent

·        consolidated bus routes

·        collaborated with other communities in the purchasing process for furniture, supplies and professional development

·        consolidated special education programs

·        pursued all avenues for state, federal and utility reimbursements, as well as grant funding

·        collaborated with the City on maintenance and repair requests and purchasing through their management software

·        participated in the Medicaid Reimbursement Program

·        developed environmental programs to reduce paper usage

·        successfully completed annual audits

 

 

These efficiencies have helped them close the gap slightly over the past few years, as has the additional funding from the Circuit Breaker legislation.  However, this year they are faced with having to close a $4.8 million gap and there are little, if any, efficiencies left.

 

The proposal calls for the reduction of 14.6 full-time equivalencies (FTEs) in the areas of operations & support, which will include administrative personnel at the Education Center, school custodians, food service personnel, and secretaries.  The Health Education Curriculum Specialist’s position will be eliminated and summer workshops for professional development will be seriously curtailed.  The only summer curriculum work that will occur will be that which derives funding from the No Child Left Behind (NCLB) law.  The equipment account will be cut districtwide and will include furniture, copies, and some technology. 

 

In terms of staffing at the elementary schools, they will eliminate 32 FTEs in aides and 9.7 FTEs in teachers.  In an effort to determine how many classes would be needed to ensure that no class would exceed 25 students, he directed his staff to review this scenario.  It was determined that 249 classes would meet this goal.  Today there are 244.  The budget he is presenting funds 235. The average class size in the elementary level this year is 20.3.  If this budget passes, it will be 21.2.  While that may not seem like a large increase, it means a lot to those children and teachers who are in the 1% of the classroom that are now at 25 or more and the 4% which will be at that level next year.  In addition, they are looking at reducing the library media program at the elementary level by half (6.9 FTEs).  This was an extremely difficult decision given the myriad roles these staff members play in a school and the vital importance of their work.  There will be a reduction in specialists in the areas of music, art, and physical education in correspondence to the reduced number of classrooms, but this will not represent a diminution in the program itself.  The total reductions at the elementary level equal 51 FTEs or $1,630,935.

 

In terms of staffing at the middle schools, there will be 12 FTEs reduction in aides and 9.4 FTEs in teachers, which will impact some electives as well as team size.  The current average team size is 89 and with this budget it will be at 90-92.  Specialists positions in reading, guidance and health will be reduced by 5.5 FTEs.  A .5 cut will be taken in the Assistant Principal position at Oak Hill and there will be a $20,000 reduction in athletics, which has yet to be determined how that will play out.  The total reductions at the middle school level equal 27.4 FTEs or $1,107,990. 

 

In terms of staffing at the high schools, they will be reducing aides by 10 FTEs, teachers by 10.1 FTEs, as well as conducting transfers of staff to accommodate the redistricting plan to equalize the high schools.  A reduction of .7 FTEs will eliminate the department head positions in the smaller but no less important areas of art, music and business, and there is an $80,000 reduction in athletics.  The total reduction at the high school level equal 20.8 FTEs or $887,738.

 

As a result of these reductions, they anticipate that they will have to pay $403,725 in unemployment costs, yet will save $553,911 in health insurance benefits, $57,675 in Medicare costs, and $16,472 in dental costs.  Taking all these reductions and increases together, the bottom line is a $5,500,000 net budget increase and a reduction of 78.5 FTEs. 

 

Of the $12,254 per pupil expenditure cost, the majority of it goes toward regular instruction ($5,782) and special education instruction ($2,379), as it should.  He pointed out that administration costs only amount to $378 (3%). 

 

At this time he wanted to point out some of the strengths of the system beginning with the literacy initiative.  With the help of the Override, they were able to bring this very successful program into the schools.  It has taken hold and is making a big difference for students, with improvements showing in the scores in grade 4 English Language Arts on the Massachusetts Comprehensive Assessment System (MCAS) exam.  He also paid tribute to Lincoln-Eliot Elementary School in particular, for being chosen as the one school in the state to receive the Exemplary Reading Award from the International Reading Association.  Principals were unanimous in their desire to preserve the full-time literacy specialists for their schools and deemed it a high priority, so it remains in the budget. 

 

Another strength of the system is its continued ability to attract people for employment.  Each year they receive approximately 5,000 applications for teaching positions and strive to hire the best and brightest.  The mix of the less experienced but talented staff with the more experienced and seasoned teachers produce an energy that keeps the system strong.  Expectations are high, but the rewards are tremendous for staff to achieve professional growth.  This year 35 teachers have participated in the leadership seminar they are offering as part of their goal to seek future leaders of the system from within their own ranks.

 

In the area of curriculum, they are getting continually closer to a standards based program that is in alignment with the State Frameworks.  They have an ongoing curriculum review cycle to constantly monitor their programs and practices.  Two areas he would like to mention as models are the Volunteer Math Program at the elementary level and the Smaller Learning Communities initiative at the high schools. 

 

Newton serves a high number of students with significant physical, behavioral and psychological disabilities and issues and they do it very well.  While it is certainly costly, they should take great pride in their work in this area. 

 

In the Operations area, they completed 5,409 work orders this past summer with a reduced maintenance staff and increased space.  Every building has a school-based environmental team trained to address issues before they become problematic.  As a result of the overall financing program put in place around the high school projects, they will begin to see increased funding for capital improvements for other buildings in FY07.  They will also be conducting an updated and comprehensive study of the elementary facilities. 

 

Finally, he would like to talk about the overall management of the system.  There are over 11,000 students and 2,000 employees in the school system in 22 buildings.  This is a very large operation and he believes it is well managed.  In the past seven years they have not faced an end-of-the-year operating deficit.  The budget has been managed despite strains on resources.  Every audit has come back with commendations and recommendations, which are acted on quickly and appropriately.  Staff work extremely hard and continue to do so with less support.  They continue to look for ways to do things better for less, but at some point the reality that they are at the breaking point will be reached and he feels they are very close.

 

He concluded by once again thanking the staff for their countless number of hours working on this document and to the Committee for providing clear budget guidelines and directives that helped them think in new ways.  Now everyone must work together to produce a final outcome that will be in the best interest of the students.

 

Anne Larner thanked the Superintendent for his presentation and then outlined the upcoming budget meetings.  It is likely to be a long budget process that will not end with the vote of the Committee.  The bottom line will really be determined

 

by the amount of state aid that becomes available to the community.  She encouraged the public to stay involved throughout the process.

 

 

ADJOURNMENT

 

The meeting was adjourned at 8:15 p.m.