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Impact of Budget Gap on Education in Bridgeport: 2019-20 Budget Analysis

This presentation examines the devastating impact on educational services in Bridgeport due to the projected budget gap of $16.0M in the 2019-20 fiscal year, including the potential loss of collective bargaining agreements, health insurance coverage, and essential grant-funded services.

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Impact of Budget Gap on Education in Bridgeport: 2019-20 Budget Analysis

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  1. DRAFT BRIDGEPORT SCHOOL DISTRICT 2019-20 Budget Gap Aresta Johnson, Superintendent IMPACT ON EDUCATION April 2019 V8B

  2. 2019-20 BUDGET GAP Table of Contents • 2019-20 Budget Gap… Defined • Budget Gaps… History • Budget Reduction: Federal and State Grants • Budget Cuts: Impact History • Budget History: Key Facts, NCEP and Special Education • State/City Share: History • 2019-20 Budget Gap: Impact on Education • Conclusion and Next Steps

  3. 2019-20 BUDGET GAP • In this presentation, we will document the devastating impact on educational services in Bridgeport, in the event that the district does not receive the requested additional operating budget appropriation, $16.0M (+6.46%). • This amount is required to maintain existing servicesby covering non-discretionary expenses, including: • Collective bargaining agreements – salary increases • Health insurance – premium increases • Internal Service Fund (ISF) – compensation for surplus funds withdrawn in prior years, no longer available in FY20 • Loss of or reductions in Federal/State grants for services either mandated or deemed essential to continue. • Special education services – escalated costs

  4. 2019-20 BUDGET GAP…Defined Projected • FY20: The State Budget is not yet finalized. Assumes the supplement for displaced students is not continued = $222,810.

  5. BUDGET GAPS: HISTORY • FY17: - $16.0M • FY18: - $11.25M • FY19: -$10.8M • FY20: -$16.0M Projected ------------------------------------- • Total: -$54.05M Projected * Reflective of escalated costs: salary increases, health insurance, special education, transportation etc.

  6. BUDGET REDUCTION: Federal Grants • The severe reduction in Federal Grants in 2017-18, $1.5M, compounded the under-resourced condition of the district and resulted in position reductions. • - 5 Literacy Coach positions* • - Human Resources Support Specialist • - Grants Support Partner • - 2 Administrator positions • *In 2018-19, all remaining Instructional Coach positions were eliminated.

  7. BUDGET REDUCTION: State Grants • 2016-17: State grants were reduced by approximately $900K, further diminishing fiscal capacity. In response, the district shifted essential services to other fund sources, wherever applicable; and reduced services, where appropriate. • 2017-18: • On 12/20/17, the State released the FY18 Priority grant appropriations, which resulted in a loss = $994,027. • On 4/10/18, the State announced the magnet grant reduction, -5.19% on the FY18 entitlement, which equated, for Bridgeport, to -6.23% of the actual FY17 budget, since magnet enrollment declined from 1,983 in FY17 to 1,913 in FY18. FY18 Magnet Loss = $502,432; FY17/18 Magnet Loss = $814,045.

  8. BUDGET CUTS: Impact History (all fund sources)

  9. BUDGET CUTS: Impact History (all fund sources)

  10. BUDGET HISTORY: Key Facts Bridgeport is the lowest on the economic scale among all districts in Connecticut. • Bridgeport is a district of approximately 21,000 students [20,384 as of 10-1-2018], the largest in Connecticut. • Within the total, there has been corresponding growth in special education students and English language learners, our neediest students. As of 10-1-18, • Special education students constitute 16.42% of the enrollment; and • English language learners, 17.73% of enrollment.

  11. BUDGET HISTORY: NCEP NCEP: Net Current Expenditures Per Pupil • It is an established fact that Bridgeport is grossly underfunded, in comparison to its peer districts. • Compare Bridgeport’s NCEP of $14,241 (as of January 2019) to Hartford, at $19,616; to Stamford, at $18,934; to New Haven, at $18,381; and to Waterbury, at $15,547. • Bridgeport is underfunded by $20.4M for each $1,000 in NCEP it does not receive. • If Bridgeport were equitably funded with Hartford, as an example, Bridgeport’s budget would rise by $109.6M!

  12. BUDGET HISTORY: Special Education As of 6-30-2018, Special Education expenditures comprised: • 28.39% of the total budget (all fund sources) • 30.29% of the general fund only EFS *GRAND TOTAL: includes all fund sources, including grants and in-kind services from the City.

  13. BUDGET HISTORY: Special Education State Special Education (SPED) Excess Cost Grant • The State releases the SPED “excess cost” grant to provide partial reimbursement for expenses incurred by districts for SPED out of district (OOD) placements. • For 2017-18, the state final cap on out of district reimbursements rose from 24.61% in FY17 to 27.56% in FY18. • This means that the district incurs a higher percentage of the remaining cost after payment of 4.5 times NCEP for each OOD placement.    • A higher cap is equivalent to another budget reduction passed along by the state to the school district and is yet another example of inadequate state financing of educational services.   Local Initiated OOD Placement, Basic Contribution (rounded): • NCEP x 4.5 = $14,241 x 4.5 = $64,085 • For each Local Initiated OOD Placement, the district pays: • NCEP x 4.5 • Plus: CAP x balance of the remaining cost • Example: An OOD placement has a total cost of $100,000. • The district pays: NCEP x 4.5 = $64,085. • Plus: Cap @27.56% x $35,915 [$100,000 - $64,085]= $9,898.17 • Total District Share = $73,983.17 State Share: $26,017

  14. STATE/CITY SHARE: FY19, FY20 Projected FY20: The State budget is TBD. The district needs $16.0M more = 6.46%

  15. STATE/CITY SHARE: History • Historical Trend • City = 26% • State = 74% Projected

  16. STATE/CITY SHARE: HISTORY • Historical Trend • City = 26% • State = 74%

  17. 2019-20 BUDGET GAP: IMPACT If the FY20 monetary need is not met….. $16M

  18. 2019-20 BUDGET GAP: IMPACT POTENTIAL ELIMINATION/REDUCTION • Position allocation adjustment (register loss) • Projection: -2 teacher positions

  19. 2019-20 BUDGET GAP: IMPACT POTENTIAL ELIMINATION/REDUCTION • Redeploy funds from curriculum renewal to deficit reduction.

  20. 2019-20 BUDGET GAP: IMPACT POTENTIAL ELIMINATION/REDUCTION

  21. 2019-20 BUDGET GAP: Impact Summary

  22. 2019-20 BUDGET GAP: Impact Summary Gap = $16.0M --------- Balance = $4.8M (est) Cuts TBD

  23. 2019-20 BUDGET GAP: Conclusion • In view of the continuing insufficiency of allocated resources to the Bridgeport School District, it is evident that the sequential budget reductions, imposed on Bridgeport over the course of three years from FY17 to FY19 (close to $40M), are the cause of severe limitations on both educational services and opportunities available to our students. • These reductions have compounded the under-resourced condition that already existed, due to many successive years of inadequate funding in our urban school district. • In 2018-19, the district sustained an educational program, within the actual funding level, at the bare minimum. • Looking ahead to 2019-20, we recognize the current situation as most grave. The district has reached the point at which a viable educational program cannot be sustained, unless the base monetary need is funded. There are very few areas remaining that would allow for cuts, without jeopardizing the core capacity of the district to maintain a viable educational program. • For the Bridgeport educational community, reversal of the negative trend causing ongoing diminution of fiscal capacity is urgent.

  24. 2019-20 BUDGET GAP: Next Steps STRONG ADVOCACY Evidently, the proper response should be a strong advocacy movement to seek fair, equitable and adequate funding on behalf of Bridgeport’s students.

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