1	Reductions to FY06 Budget April 28, 2005
2	FY06 Budget Shortfall Medway is facing one of the toughest budget cycles in many years. As a result of fixed costs and other financial obligations rising at a much greater rate than the revenue that can be generated by the limitations of Proposition 2½, the town cannot raise the revenue needed to fully support municipal and school services.
3	Overview of FY06 Budget Deficit Health Insurance Costs Pension Expenses Snow Removal Costs Tri-County Regional Vocational Tech Costs Revenue Deficit 1. Over-projected Investment Income 2. Over-projected Excise Tax Income Total Town Deficit = $2.7 million
4	FY06 “Basic Needs” Budget (Prepared in December 2004) The “basic needs” budget represents modest improvements in staffing, programs, and services that were recommended above the FY05 status quo budget. The “basic needs” budget would help address the district priorities of maintaining reasonable class sizes, upgrading technology, restoring electives to the high school, and strengthening the curriculum. The “basic needs” budget has been presented to the school committee, the Medway Public School staff, the senior citizens, and twice to the community. $21,051,096
5	Reductions to “Basic Needs” Budget Eliminate 2.0 FTE mathematics specialists at the elementary level. (One specialist position at McGovern and one at Burke/ Memorial will not be filled to advance overall numeracy for students.) Eliminate 1.0 FTE classroom teacher at the middle school. (Class size will increase in all sections with over 28 students per class for 19 leveled classes in grade 8.)
6	Basic Needs Reductions (cont.) Eliminate 0.5 FTE foreign language teacher at middle school. (Conversational foreign language will not be offered for 7^th and 8^th graders.) Eliminate 0.8 FTE guidance counselor at the middle school. (Only 2.2 counselors available to service over 950 students.)
7	Basic Needs Reductions (cont.) Eliminate 0.7 FTE clerical paraprofessional position at the middle school. (Clerical staff will remain at 2.3 FTE even though enrollment has risen from 599 students to 958.) Eliminate 4.2 FTE classroom teachers at the high school. (Class size will increase and program electives will not be added.)
8	Basic Needs Reductions (cont.) Eliminate 0.2 FTE student support coordinator at the high school. (Student support coordinator will remain status quo despite increase in enrollment.) Eliminate 1.0 FTE special education teacher at the elementary level. (Early intervention for students in kindergarten and grade one will be limited.)
9	Basic Needs Reductions (cont.) Eliminate 1.0 FTE director of curriculum position. (Postpone improvements to curriculum and instruction for students.) Eliminate curriculum initiative funds. (Many outdated textbooks and teaching materials will not be updated.)
10	Basic Needs Reductions (cont.) Reduce professional development funds. (Access to new teaching strategies, uses of technologies, and other essential elements in teaching to high standards will not be offered.) Total amount cut from “basic needs” budget. $634,561
11	FY06 Status Quo Budget The “status quo” budget represents the FY05 budget amount plus the cost of contractual and other obligations, such as salary increases, high school re-accreditation costs, and utilities increases, for FY06. A status quo budget is what is needed to provide level services for FY06. $20,566,535
12	Reductions to “Status Quo” Budget Eliminate 2.0 FTE custodial staff. (Less cleaning at the middle school complex will take place.) Eliminate 15.0 FTE classroom para- professional positions. (Availability of support for students in kindergarten, elementary classes, and middle school will be reduced.)
13	Status Quo Reductions (cont.) Eliminate 1.8 FTE health education teachers at the elementary level. (Health education will be integrated into physical education program at McGovern and Burke/Memorial.) Eliminate 0.5 FTE school nurse at the middle school. (Leaves only one nurse to service over 950 students.)
14	Status Quo Reductions (cont.) Eliminate 2.0 FTE cafeteria aides at Burke/Memorial School. (Less supervision available to monitor the students.) Eliminate the lunch room and locker room monitor at the middle school. (Less supervision available to monitor the students.)
15	Status Quo Reductions (cont.) Eliminate after school band classes at the high school. (Some students may not be able to schedule band practice.) Replace 1.0 FTE art teacher at the middle school with a lower salary teacher. (Salary differential realized due to resignation.) Eliminate one bus. (Buses will be more crowded and fewer stops may be provided.)
16	Status Quo Reductions (cont.) Reduce the hours of Pre-K paraprofessionals from 30 hours per week to 24 hours. (Less support will be available for Pre-K teachers.) Replace 1.0 FTE science teacher at the high school with lower salary teacher. (Salary differential realized due to resignation.) Eliminate 1.0 classroom teacher at Memorial School. (Class size will increase.)
17	Status Quo Reductions (cont.) Eliminate 0.8 FTE classroom teacher at the high school. (Class size will increase or electives will be reduced.) Eliminate stipend for teaching assistant principal at McGovern School. (Leaves no supervision when principal is out of the building.)
18	Status Quo Reductions (cont.) Eliminate 1.0 FTE classroom teacher at McGovern School. (Class size will increase.) Total amount cut from “status quo” budget. $665,832 Amount left of $19,900,703 is funded at FY05 level dollar amount.
19	FY06 Level Funded Budget Although the total amount of the FY06 budget is level to FY05, the impact as presented above is in fact $665,832 in reductions/eliminations from the FY05 budget in order to accommodate contractual and other obligations. Level Funded Budget = $19,900,703
20	Reductions to the “Level Funded” Budget Eliminate 1.0 FTE science teacher at the high school. (Class size will increase or electives will be reduced.) Eliminate 1.0 FTE social studies teacher at the high school. (Class size will increase or electives will be reduced.) Eliminate another 1.0 FTE paraprofessional at the middle school. (Support for students will be reduced.)
21	Level Funded Reductions (cont.) Eliminate 0.5 FTE maintenance position. (Longer wait time for servicing HVAC systems and other repairs.) Reduce building maintenance account. (Repair and general maintenance on all facilities will be limited.) Reduce building and instructional supply accounts. (Purchases for supplies and materials will be reduced.)
22	Level Funded Reductions (cont.) Reduce utilities account. (Use of some buildings in evening may be restricted or fees increased.) Further reduce professional development account. (Less teacher training available for all staff.) Introduce and/or increase user fees for various services. (Athletics, busing, etc.)
23	Level Funded Reductions (cont.) Total amount cut from the level funded budget. $339,000 Amount remaining for FY06 is $19,561,703. This funding level decreases the FY06 budget by 1.7% below the FY05 budget.
24	Summary of FY06 Budget Reductions Reduction from Basic Needs……..$634,561 Reduction from Level Services…..$665,832 Reduction from Level Funded…….$339,000 (As recommended by the Finance Committee) Total Amount of Reductions…$1,639,393
25	Reduction to Health Insurance As a result of the cuts made to personnel in the FY06 school budget based on the Finance Committee’s recommendation, the school department will save the town approximately $110,000 in health insurance costs. Total Reduction to Schools…...........$1,639,393 Health Insurance Reduction…………..$110,000 Total Town Impact of School Cuts…….$1,749,393
26	Further Reductions to the Level Funded Budget The Board of Selectmen is considering a proposal that would result in a more substantial reduction to the school department budget. The selectmen’s recommendation could further reduce the level funded budget by approximately another $477,000 to as much as $806,000.
27	Further Reductions to Level Funded Budget Eliminate another 4.0 FTE paraprofessional positions. (Virtually all support for students will be eliminated except for services mandated by special education requirement in students’ Individual Education Plans.) Eliminate another 1.0 FTE classroom teacher at McGovern School. (Class size will increase.)
28	Further Reductions (cont.) Eliminate another 1.0 FTE classroom teacher at Memorial School. (Class size will increase.) Eliminate 4.0 FTE classroom teachers at the middle school. (Class size will increase.) Increase user fees to highest possible level for various services. (Athletics, busing, etc.)
29	Total FY06 Budget Reductions Reduction from Basic Needs……………… $634,561 Reduction from Level Services …………… $665,832 Reduction from Level Funded……………... $339,000 (As recommended by the Finance Committee) Further Reductions from Level Funded...... $641,500 (Mid-point of range being considered by Board of Selectmen) Total Amount of Reductions………….. $2,280,893
30	Considerations Approximately 25% ($4.8 million) of the school department budget is allocated to mandated special education costs. Approximately 30% ($6.1 million) of the school department budget is funded by Chapter 70 state aid. FY06 is high school re-accreditation year
31	FY06 Budget Starting to Ending Points FY05 Appropriated Budget……............................$19,900,703 FY06 School Committee Voted “Basic Needs” Budget……………………………………………… $21,051,096 (Incremental Increase [5.8%] over FY05).............. $1,150,393 FY06 Level Service Budget………….................. $20,566,535 (Incremental Increase [3.3%] over FY05)..………….$665,832
32	FY06 Budget Starting to Ending Points (cont.) FY06 Level Funded Budget……………………….$19,900,703 (Incremental increase [0%] over FY05)………………………$0 FY06 Finance Committee Recommended Budget……………………………………………… $19,561,703 (Decrease [1.7%] from FY05 Budget)..……………..($339,000) FY06 Board of Selectmen Considered Budget (Mid-point of range)……………………….$18,920,203 (Decrease [4.9%] from FY05 Budget)..……………..($980,500)
33	Conclusion The FY06 budget situation presents a very serious dilemma to the Medway Public Schools. The impact of the reductions will have a negative effect on the quality of the educational experience for Medway’s students. We, in the school department, will continue to provide the best services we can with whatever resources the town gives us.