MULTI YEAR BUDGET PROJECTION Included in the school budget proposal is a projection of the school budget over a five- year period. The projection model serves as a tool to examine various revenue assumptions over time and to compare the assumptions to projected expenditures for the school district. Not as detailed as the full budget proposal, the forecast is based on the Superintendent’s Proposed Budget for FY25 to show the expected trends through FY29. The FY25 City allocation for Newton Public Schools is based on a 3.7% increase. This increase is a combination of a baseline 3.6% increase along with an additional $220,000 to make up for a decrease in City one-time funding for salaries. In addition to the Operating Budget increase, the multi-year projection now includes the newly established Education Stabilization Fund. This fund will be created with an initial balance of $22 million. In FY25, the Stabilization Fund will serve to offset the operating budget and cover the cost of approximately 33 FTEs as detailed in the Superintendent’s Proposed Budget. The multi-year budget projection shows the uses of the Stabilization Fund over the course of 5 years, starting with $4.1 million in FY25. Lastly, the FY25 budget increase includes actual and estimated costs for all new collective bargaining contracts. The multi-year forecast assumes a 3.5% budget increase for FY26 through FY29, as well as use of the Stabilization funding over the same five-year period. These figures are based on recent revenue projections from the City of Newton. Below are the basic assumptions for years FY25 through FY29 • Health Insurance: rate increase of 7. 1 % on average in FY25 and 5% each year from FY26 to FY29 • Dental Insurance: rate increase of 4% each year • Life and Disability Insurance: increase by 1% each year • Medicare: increase by 5% each year • Medicare Part B Reimbursement: reduced by 50% each year as the benefit is phased out over time • OPEB (Other Post-Employment Benefits): funding moved to the City budget in FY24 • Out-of-district Tuition: rate increase of 4% annually • Regular Transportation and Special Education Transportation: all increase by 5% on average each year • Utilities: rate increase of 4% annually • Charter Maintenance: increase by 3.5% each year • All Other Expenses: increase by 2% annually for inflation Increases and decreases in one-time funding, in addition to the Education Stabilization, are assumed in the projection with an assumed Circuit Breaker carryforward of $3 million needed to balance the FY25 budget. Circuit Breaker revenue is based on the prior year’s expenses for special education and is assumed to increase by $1.2 million in FY25 due to the 14% OSD-approved rate increase for tuition in FY24. An increase of $410,000 is needed in FY25 due to the loss of City funding for summer maintenance projects. In FY24, the City Bridge grant is assumed as a credit of $700,000 for out-of-district tuition.
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