Conditions and Assumptions in the FY27 Budget: The conditions and assumptions in formulating the FY27 budget are outlined below:
• Federal and State Grant Funding - With the increased cost of health care, steps, lanes, and COLAs, level-funding of our grant revenue translates to a reduction in programming. This is a significant factor for two grants for which a majority of the funding supports staffing: Newton's Title I, II, and III funding; and our METCO funding - across the entire district. The Title grants are especially significant, as the FY27 budget has been developed with the assumption that the district will experience a 10% reduction in Title I funding. We are assuming level funding for all other grant funding. The anticipated 10% reduction in Title I is roughly $45,000; these are expenses that the district will need to absorb or reduce services. • Shifting and Declining Enrollment - While the district continues to experience declining enrollment, increasingly complex student needs continue to present and evolve in our students across all levels. The district remains aware of its financial constraints, while maintaining our dedication to maintaining reasonable class sizes that facilitate a supportive learning environment for all students. This budget assumes a reduction of 7.0 FTE in our elementary schools and 2 FTE additions at the middle schools. • Yellow Bus Student Transportation – A net 3.7% budget increase based on our current five-year contractual rate increase, our anticipated fee offsets, and our current fleet of 34 in-city buses. • Special Education Transportation – Adjusts for a rate increase and assumes an overall increase of 2.1% for FY27. More information on Special Education and Yellow Bus Transportation can be found in the “Overview by Major Program Area” section under the subsection “Transportation”. • Special Education Tuition – An increase in the gross out-of-district tuition budget based on a state-set rate from the Operational Services Division of 3.04% for day and residential private school placements, as well as rising student need and our anticipated end-of-year expenses in FY26. • Special Education Circuit Breaker Reimbursement – Anticipates 75% of net claims for a total reimbursement of $10,128,822 with the State funding for special education with special education transportation reimbursement included. • Charter Maintenance (Building Maintenance) - Overall, the Facilities Maintenance budget will increase by $66,000, which represents an overall increase of 2.0%. The district has been making incremental progress year over year towards addressing the underfunding in this department. • Additional Capital Projects - The following City funding for curriculum and additional capital projects were funded by the City in FY25 and are either completed or in process. Completed Projects include:
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