School Committe Mayoral Academy Presentation 8-29-2011 Rev 1

Cranston Public Schools
Achievement First Mayoral Academy

Fiscal Impact Rebuttal
August 29, 2011
Cranston School Committee
CPS Mayoral Academy Fiscal Impact Rebuttal
Comprehensive Fiscal Impact Analysis
Fiscal impact statement as prepared by the Mayor is seriously misleading,

utilizing a flawed budgeting methodology.
The Mayor has presented a distorted view of the Districts finances, only looking at the
additional revenue that is to be received under the RI Education fair funding formula
to make his case that the Mayoral Academy will not have a fiscal impact on the School
District.
What matters is not how much additional money the School District will be receiving
from the State (an uncertain proposition, since the state could change its mind in
subsequent years), but how does the receipt of that additional money affect the
overall finances of the School District.
By analogy, take a Rhode Island family with both husband and wife working,
who are considering the affordability of purchasing a new car. While making
the showroom rounds, the husband is laid off and the wife receives a raise.
How would you make the decision? Would you make it solely based upon the
wifes raise, or would you take a look at the big picture? More importantly,
does the wifes raise exceed the loss in income from the husbands layoff?
The Mayors fiscal analysis ignores the context of the Citys and
Districts overall finances: Can the School District and the City afford
the loss of revenue to the Mayoral Academy. Are there enough cost
savings to mitigate the loss of revenue?
Our goal tonight is to remedy this deficiency by presenting the context

in which the Mayoral Academy impacts the finances on the School
District and the City.
Overview of Cranston Public Schools Adopted Budget, submitted to the Mayor

on March 9, 2011. This report contained a six year forecast of the Districts
operating budget for the years FY 2013 through FY 2018 which will become the
baseline for this presentation.
In March 2011, the Mayor retained two auditors to review this budget and issue a report. The
report was complimentary of the submitted budget and praised the suggested funding proposals for
promoting dialogue.
The report did not contain any criticism of the forecasted budget projections.
Reconciled Adopted Budget for 2011-2012, as of August 18, 2011, incorporating

appropriations from the 2011-2012 adopted budget of the City Council,
additional expense adjustments adopted by the School Committee as of June
30, 2011, and additional information since June 30.
Comprehensive Fiscal Impact Analysis combining the School Districts
Reconciled Adopted Budget and the relevant information from the Mayors
Fiscal Impact Analysis.
Relevant Information from Report
The Mayors Fiscal Impact Report contains two relevant pieces of

information for assessing the impact of the Mayoral Academy on the
Cranston School District and the City of Cranston:
The Increase in State Aid that the District will receive under the fair funding
formula. In fiscal 2012 and into the future, this is projected at $2,349,234.
The revenue that will follow each child that exits the Cranston School
District and enrolls in the Mayoral Academy. This starts at $1,046,945 in
FY 2013 and grows to $6,240,406 by FY 2017 (See table that follows).
While the per pupil costs are subject to future change, the estimates
appear reasonable and will be used in this Fiscal Impact analysis.
The rest of the report is irrelevant. The analysis and conclusions are
flawed, as discussed earlier.
Relevant Information from Report

FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
2,349,234
4,698,468
7,047,702
9,396,936
11,746,170
14,095,404
16,444,638
FY2013
FY2014
FY2015
FY2016
FY2017
5,791
5,791
5,791
5,791
5,791
4,137
4,137
4,137
4,137
4,137
Local share ($):

Each student
6,685
7,241
7,798
8,354
8,354
Total Per Pupil ($):

Low-income student
12,476
13,032
13,589
14,145
14,145
Per Pupil ($):

Non low-income student
10,822
11,378
11,935
12,491
12,491
Enrolled Non Low-Income

(35%):
31
77
106
133
161
Enrolled Low-Income (65%):
57
142
196
246
299
Total Cranston Enrollment:
88
219
302
379
460
Total Funding for Cranston

Students Attending AFMA ($):
1,046,945
2,727,229
3,929,050
5,141,552
6,240,406
State share ($):

Low-income student
State share ($):
Non low-income student
Adopted Budget
Adopted
Proposed
2010-2011
2011-2012
submitted March 9, 2011
Adopted
Amendments
Forecasted
2011-2012
Increase
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
% Inc.
REVENUES
State General Aid
State Aid, Increase for RI Funding Formula
State Aid, other
Federal Thru State
City of Cranston Appropriation
City carryovers
Other revenue
Total
24,495,325
24,495,325
24,495,325
0.00%
24,495,325
24,495,325
24,495,325
24,495,325
24,495,325
24,495,325
1,500,000
1,500,000
1,500,000
3,000,000
4,500,000
6,000,000
7,500,000
9,000,000
10,500,000
7,234,421
7,965,243
7,965,243
730,822
10.10%
6,434,979
6,434,979
6,434,979
6,434,979
6,434,979
6,434,979
1,600,000
1,600,000
200,000
1,800,000
200,000
12.50%
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
89,213,637
93,005,217
93,005,217
3,791,580
4.25%
94,685,532
96,395,077
98,134,470
99,627,668
101,646,364
103,705,645
2,440,995
2,327,533
2,327,533
(113,462)
-4.65%
2,363,000
2,363,000
2,363,000
2,363,000
2,363,000
2,363,000
200,000 131,093,318
6,108,940
4.89%
132,778,836
135,988,381
139,227,774
142,220,972
145,739,668
149,298,949
678,454
1.02%
68,259,389
69,283,280
70,322,529
71,377,367
72,448,028
73,534,748
1.5%
124,984,378 130,893,318
SUMMARY EXPENSES BY CATEGORY

Faculty Salaries
Custodian Salaries / Wages
Bus Driver / Monitor Wages
Secretary Salaries / Wages
Administrative Salaries
Benefits / Taxes
Certified Pension
Tuitions, Special Education
Tuitions, Other
Instructional Consumables
Overheads
Utilities
Deficit Reduction
Total
Surplus / (Deficit)
66,572,176
68,697,789
(1,447,159)
67,250,630
3,638,669
3,663,550
3,663,550
24,881
0.68%
3,700,186
3,737,187
3,774,559
3,812,305
3,850,428
3,888,932
1.0%
2,939,858
3,124,655
3,124,655
184,797
6.29%
3,155,902
3,187,461
3,219,335
3,251,529
3,284,044
3,316,884
1.0%
2,343,749
2,460,587
(90,966)
2,369,621
25,872
1.10%
2,393,317
2,417,250
2,441,423
2,465,837
2,490,495
2,515,400
1.0%
1.0%
5,144,750
5,148,723
5,148,723
3,973
0.08%
5,200,210
5,252,212
5,304,734
5,357,782
5,411,360
5,465,473
20,845,810
22,766,205
(838,170)
21,928,035
1,082,225
5.19%
22,606,815
23,505,909
24,436,808
25,146,632
25,876,191
26,626,065
7,230,170
9,213,560
(187,364)
9,026,196
1,796,026
24.84%
10,391,384
11,777,049
13,183,500
13,897,274
14,621,754
15,357,101
5,299,792
6,342,134
(119,333)
6,222,801
923,009
17.42%
6,471,713
6,730,582
6,999,805
7,279,797
7,570,989
7,873,828
1,031,350
1,227,948
1,227,948
196,598
19.06%
1,240,227
1,252,630
1,265,156
1,277,808
1,290,586
1,303,492
1.0%
1,645,634
1,728,831
1,728,831
83,197
5.06%
1,746,119
1,763,581
1,781,216
1,799,028
1,817,019
1,835,189
1.0%
6,027,751
6,346,827
(793,961)
5,552,866
(474,885)
-7.88%
5,719,452
5,891,036
6,067,767
6,249,800
6,437,294
6,630,412
3.0%
2,264,669
2,275,571
2,275,571
10,902
0.48%
2,298,327
2,321,310
2,344,523
2,367,968
2,391,648
2,415,564
1.0%
1,573,891
1,573,891
1,573,891
1,573,891
1,573,891
1,573,891
(1,903,062) 131,093,318
6,108,940
4.89%
134,756,932
138,693,377
142,715,247
144,283,126
147,489,835
150,763,091
(1,978,096)
(2,704,996)
(3,487,473)
(2,062,155)
(1,750,167)
(1,464,142)
124,984,378 132,996,380
(2,103,062)
2,103,062
4.0%
Adopted Budget
Proposed
2011-2012
Surplus / (Deficit)
(2,103,062)
Amendments
2,103,062
Adopted
2011-2012
submitted March 9, 2011
Forecasted
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
-
(1,978,096) (2,704,996) (3,487,473) (2,062,155) (1,750,167) (1,464,142)
The School Committee presented, to the Mayor, a balanced budget for 20112012 forecasting deficits into the future for the next six years. The future
forecasts were based upon prior expense history, existing contracts, and
revenue increases as follows:
Increase in State Aid under the fair funding formula of $1,500,000 per year for seven years, based
upon initial projections from the Governors office and beginning in the current fiscal year.
The City to bear increases for the current and future fiscal years for pension increases and 75% of
special education tuition increases, as these were non-controllable expenses to the School District.
For the current fiscal year, these increases were recommended by the Mayor and adopted by the
City Council.
The Budget contained an additional request of $1,040,000 as an increase in the maintenance of

effort, which was denied by the Mayor and City Council. Additionally, the budget requests above
were also diminished by $392,000 as recommended by the Mayors budget audit report.
None of the forecasted expense assumptions were challenged by the audit

report as being unreasonable.
Revised Adopted Budget,

Adopted
Proposed
Adopted
as of August 18, 2011

Forecasted
2010-2011
2011-2012 Amendments
2011-2012
24,495,325
24,495,325
24,495,325
0.00%
24,495,325
24,495,325
24,495,325
24,495,325
24,495,325
24,495,325
2,349,234
2,349,234
2,349,234
4,698,468
7,047,702
9,396,936
11,746,170
14,095,404
16,444,638
Increase
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
% Inc.
REVENUES
State General Aid
State Aid, Increase for RI Funding Formula

State Aid, other
7,234,421
7,197,279
7,197,279
(37,142)
-0.51%
5,667,015
5,667,015
5,667,015
5,667,015
5,667,015
5,667,015
Federal Thru State
1,600,000
1,600,000
200,000
1,800,000
200,000
12.50%
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
93,005,217 (2,122,565)
90,882,652
1,669,015
1.87%
92,537,502
94,220,741
95,932,957
98,100,904
100,799,859
103,556,098
89,213,637
City carryovers
Other revenue
2,440,995
2,327,533
2,327,533
(113,462)
-4.65%
2,363,000
2,363,000
2,363,000
2,363,000
2,363,000
2,363,000
124,984,378 130,974,588 (1,922,565) 129,052,023
4,067,645
3.25%
131,561,310
135,593,783
139,655,233
144,172,414
149,220,603
154,326,076
Total

Faculty Salaries
335,830
0.50%
67,911,626
68,930,300
69,964,255
71,013,719
72,078,925
73,160,108
1.50%
3,663,550
3,663,550
24,881
0.68%
3,700,186
3,737,187
3,774,559
3,812,305
3,850,428
3,888,932
1.00%
2,939,858
3,124,655
3,124,655
184,797
6.29%
3,155,902
3,187,461
3,219,335
3,251,529
3,284,044
3,316,884
1.00%
2,343,749
2,460,587
(90,966)
2,369,621
25,872
1.10%
2,393,317
2,417,250
2,441,423
2,465,837
2,490,495
2,515,400
1.00%
1.00%
66,572,176
68,697,789 (1,789,783)
66,908,006
3,638,669
5,144,750
5,148,723
(6,269)
5,142,454
(2,296)
-0.04%
5,193,879
5,245,817
5,298,275
5,351,258
5,404,771
5,458,819
Benefits / Taxes
20,845,810
22,766,205
(839,161)
21,927,044
1,081,234
5.19%
22,596,451
23,495,239
24,425,827
25,135,410
25,864,726
26,614,352
Certified Pension
7,230,170
9,213,560
(187,364)
9,026,196
1,796,026
24.84%
10,384,429
11,763,035
13,162,320
14,582,594
16,024,172
17,487,375
5,299,792
6,342,134
(732,100)
5,610,034
310,242
5.85%
5,834,435
6,067,813
6,310,525
6,562,946
6,825,464
7,098,483
4.00%
Tuitions, Other
1,031,350
1,227,948
1,227,948
196,598
19.06%
1,240,227
1,252,630
1,265,156
1,277,808
1,290,586
1,303,492
1.00%
1,645,634
1,728,831
1,728,831
83,197
5.06%
1,746,119
1,763,581
1,781,216
1,799,028
1,817,019
1,835,189
1.00%
Overheads
6,027,751
6,346,827
(793,961)
5,552,866
(474,885)
-7.88%
5,719,452
5,891,036
6,067,767
6,249,800
6,437,294
6,630,412
3.00%
Utilities
2,264,669
2,275,571
2,275,571
10,902
0.48%
2,298,327
2,321,310
2,344,523
2,367,968
2,391,648
2,415,564
1.00%
1,573,891
1,573,891
1,573,891
1,573,891
1,573,891
1,573,891
- (1,078,644)
(1,078,644)
(1,078,644)
1,078,644
124,984,378 132,996,380 (3,944,357) 129,052,023
4,067,645
3.25%
133,748,240
137,646,549
141,629,073
144,948,846
147,759,571
151,725,011
(2,186,930)
(2,052,766)
(1,973,840)
(776,432)
1,461,032
2,601,065
Deficit Reduction
Deficit Restructuring
Total
Surplus / (Deficit)
- (2,021,792)
2,021,792

1
Adopted
Proposed

Adopted
2010-2011
2011-2012 Amendments 2011-2012
Increase
24,495,325
24,495,325
24,495,325
0.00%
2,349,234
2,349,234
2,349,234
State Aid, other
7,234,421
7,197,279
7,197,279
(37,142)
-0.51%
Federal Thru State
1,600,000
1,600,000
200,000
1,800,000
200,000
12.50%
93,005,217 (2,122,565)
90,882,652
1,669,015
1.87%
REVENUES
State General Aid
State Aid, Increase for RI Funding
Formula
89,213,637
City carryovers
Other revenue
2,440,995
2,327,533
2,327,533
(113,462)
-4.65%
124,984,378 130,974,588 (1,922,565) 129,052,023
4,067,645
3.25%
Total

Faculty Salaries
Adopted
2010-2011
Proposed
2011-2012

Adopted
2011-2012
Amendments
Increase
66,572,176
68,697,789
(1,789,783)
66,908,006
335,830
0.50%
3,638,669
3,663,550
3,663,550
24,881
0.68%
2,939,858
3,124,655
3,124,655
184,797
6.29%
2,343,749
2,460,587
(90,966)
2,369,621
25,872
1.10%
5,144,750
5,148,723
(6,269)
5,142,454
(2,296)
-0.04%
Benefits / Taxes
20,845,810
22,766,205
(839,161)
21,927,044
1,081,234
5.19%
Certified Pension
7,230,170
9,213,560
(187,364)
9,026,196
1,796,026
24.84%
5,299,792
6,342,134
(732,100)
5,610,034
310,242
5.85%
Tuitions, Other
1,031,350
1,227,948
1,227,948
196,598
19.06%
1,645,634
1,728,831
1,728,831
83,197
5.06%
Overheads
6,027,751
6,346,827
(793,961)
5,552,866
(474,885)
-7.88%
Utilities
2,264,669
2,275,571
2,275,571
10,902
0.48%
Deficit Reduction
1,573,891
1,573,891
1,573,891
(1,078,644)
(1,078,644)
(1,078,644)
124,984,378
132,996,380
(3,944,357)
129,052,023
4,067,645
3.25%
(2,021,792)
2,021,792
Total
Surplus / (Deficit)

3
Forecasted
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
24,495,325
24,495,325
24,495,325
24,495,325
24,495,325
24,495,325
4,698,468
7,047,702
9,396,936
11,746,170
14,095,404
16,444,638
State Aid, other
5,667,015
5,667,015
5,667,015
5,667,015
5,667,015
5,667,015
Federal Thru State
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
1,800,000
92,537,502
94,220,741
95,932,957
City carryovers
Other revenue
2,363,000
2,363,000
2,363,000
2,363,000
2,363,000
2,363,000
REVENUES
State General Aid
State Aid, Increase for RI Funding
Formula
Total
98,100,904 100,799,859 103,556,098
131,561,310 135,593,783 139,655,233 144,172,414 149,220,603 154,326,076

SUMMARY EXPENSES
Faculty Salaries
2012-2013
2013-2014
Forecasted
2014-2015
2015-2016
2016-2017
2017-2018
% Inc.
67,911,626
68,930,300
69,964,255
71,013,719
72,078,925
73,160,108
1.50%
3,700,186
3,737,187
3,774,559
3,812,305
3,850,428
3,888,932
1.00%
3,155,902
3,187,461
3,219,335
3,251,529
3,284,044
3,316,884
1.00%
2,393,317
2,417,250
2,441,423
2,465,837
2,490,495
2,515,400
1.00%
5,193,879
5,245,817
5,298,275
5,351,258
5,404,771
5,458,819
1.00%
Benefits / Taxes
22,596,451
23,495,239
24,425,827
25,135,410
25,864,726
26,614,352
Certified Pension
10,384,429
11,763,035
13,162,320
14,582,594
16,024,172
17,487,375
5,834,435
6,067,813
6,310,525
6,562,946
6,825,464
7,098,483
4.00%
Tuitions, Other
1,240,227
1,252,630
1,265,156
1,277,808
1,290,586
1,303,492
1.00%
1,746,119
1,763,581
1,781,216
1,799,028
1,817,019
1,835,189
1.00%
Overheads
5,719,452
5,891,036
6,067,767
6,249,800
6,437,294
6,630,412
3.00%
Utilities
2,298,327
2,321,310
2,344,523
2,367,968
2,391,648
2,415,564
1.00%
Deficit Reduction
1,573,891
1,573,891
1,573,891
1,078,644
Total
Surplus / (Deficit)
133,748,240
137,646,549
141,629,073
144,948,846
147,759,571
151,725,011
(2,186,930)
(2,052,766)
(1,973,840)
(776,432)
1,461,032
2,601,065
Revised adopted Budget,
Changes to original Forecast submitted March 9. 2011
Projected state revenue for the current year within approximately $10,000 of funding adopted by
the General Assembly.
State Aid adjusted to $2,324,349 in future forecasts
School Committee is working on negotiating concessions from its collective bargaining groups for
FY2012 and FY2013. As of this date about $2.6 million have been obtained. Additional concessions
are expected to allow for a partial payment against the deficit reduction plan in FY2012.
Forecast includes Deficit Reduction plan deferrals and repayments.
School Committee has implemented all recommendations of the Performance audit, except
transportation and custodial services, both of which are under review.
Deficits amounting to approximately $2 million are projected for FY2013,

FY2014, and FY2015. In FY2016, the Deficit narrows to about $750,000.
Beginning in FY 2017, the School District is expected to be in surplus.
To balance the budget, the School committee will need to implement all or
some of the following:
Additional cost cutting measures (which are limited and are in process),
Obtain additional concessions from its bargaining groups, and/or
Defer repayment on the deficit reduction plan.
Mayoral Academy Fiscal Impact
To evaluate the fiscal impact, the information from the Mayors Fiscal
Impact analysis will now be combined with the School Districts budget
forecasts.
However, first potential costs savings from readjustment of the

Districts classroom will be evaluated and quantified as suggested in
the Mayors analysis.
Potential Classroom Readjustments

PROJECTED ENROLLMENT AND LOST STUDENTS PER GRADE
Mayoral Academy Projected Enrollment
2013
2014
2015
2016
2017
K
1
2
3
4
5
6
Total
44
44
73
73
73
75
75
76
76
75
75
76
76
47
77
77
77
77
76
76
88
219
302
349
460
2013
K
1
2
3
4
5
6
1.3
1.3
-
Lost Students per Class per Grade

2014
2015
2016
2.1
2.1
2.1
-
2.1
2.1
2.2
2.2
-
2.1
2.1
2.2
2.2
1.3
-
2017
2.2
2.2
2.2
2.2
2.2
2.2
-

POTENTIAL SAVINGS FROM INSTRUCTIONAL REALIGNMENT
2013
K
1
2
3
4
5
6
Classrooms
closed, total
Itinerants
Total
Cost per FTE
Est. Savings
2014
2015
2016
2017
1.0
1.0
1.0
-
1.0
1.0
1.0
1.0
-
1.0
1.0
1.0
1.0
-
1.0
1.0
1.0
1.0
1.0
-
3
71,500
214,500
2
6
71,500
429,000
4
8
71,500
572,000
6
11
71,500
786,500
THE SCHOOL COMMITTEE DOES NOT BELIEVE THAT THE

AFORMENTIONED SAVINGS FROM REALIGNMENT OF THE
CLASSROOMS AND INTENERANTS ARE ACHIEVABLE, AS CURRENT
HIGH CLASSROOM SIZES WILL NOT RESULT IN THE CLOSURE OF
CLASSROOMS, OR THE ELIMINATION OF ITINERANTS.
HOWEVER, FOR CONSERVATISM AND REASONABLENESS, THESE
COSTS SAVINGS WILL BE INCLUDED IN OUR FISCAL IMPACT
REBUTTAL.

Revenues
Expenses
Surplus / (Deficit), Forecasted
ADJUSTMENTS TO FORECAST
Cost cutting measures
Transportation
Other Estimated
Subtotal, School District Adjusted
Forecast
Impact of Mayoral Academy
Loss of Revenue to Mayoral Academy
Offset cost reduction measures
Forecasted Impact of Mayoral
Academy on Cranston School District
Other Potential Expenditures
Additional Increase in pension costs
Opening of full day kindergarten
BEP underfunding
Capital Projects
Renovate Middle School Science Labs
Repairs / Maintenance to school
Buildings
Worst Case financial impact on
Cranston School District and City
Forecasted
2014-2015
2015-2016
139,655,233
144,172,414
141,629,073
144,948,846
2012-2013
131,561,310
133,748,240
2013-2014
135,593,783
137,646,549
(2,186,930)
(2,052,766)
(1,973,840)
416,389
350,000
416,389
350,000
(1,420,541)
2016-2017
149,220,603
147,759,571
2017-2018
154,326,076
151,725,011
(776,432)
1,461,032
2,601,065
416,389
350,000
416,389
350,000
416,389
350,000
416,389
350,000
(1,286,377)
(1,207,451)
(10,043)
2,227,421
3,367,454
(1,046,945)
-
(2,727,229)
214,500
(3,929,050)
429,000
(5,141,552)
572,000
(6,240,406)
786,500
(6,240,406)
1,022,500
(2,467,486)
(3,799,106)
(4,707,501)
(4,579,595)
(3,226,485)
(1,850,452)
(5,598,546)
(1,234,400)
(3,900,000)
(5,718,347)
(1,252,900)
(3,900,000)
(5,696,619)
(1,271,700)
(3,900,000)
(5,728,082)
(1,290,800)
(3,900,000)
(5,706,243)
(1,310,200)
(3,900,000)
(5,684,079)
(1,329,900)
(3,900,000)
(282,000)
(282,000)
(282,000)
(282,000)
(282,000)
(282,000)
(718,000)
(1,478,000)
(2,178,000)
(2,618,000)
(2,618,000)
(2,618,000)
(14,200,432)
(16,430,352)
(18,035,819)
(18,398,478)
(17,042,928)
(15,664,431)

Revenues
Expenses
Surplus / (Deficit),
Forecasted
Adjustments to Forecast
Cost cutting measures
Transportation
Other Estimated
Subtotal, School District
Adjusted Forecast
Forecasted
2014-2015
2015-2016
139,655,233
144,172,414
141,629,073
144,948,846
2012-2013
131,561,310
133,748,240
2013-2014
135,593,783
137,646,549
(2,186,930)
(2,052,766)
(1,973,840)
416,389
350,000
416,389
350,000
(1,420,541)
2016-2017
149,220,603
147,759,571
2017-2018
154,326,076
151,725,011
(776,432)
1,461,032
2,601,065
416,389
350,000
416,389
350,000
416,389
350,000
416,389
350,000
(1,286,377)
(1,207,451)
(10,043)
2,227,421
3,367,454
(1,046,945)
(2,727,229)
(3,929,050)
(5,141,552)
(6,240,406)
(6,240,406)
214,500
429,000
572,000
786,500
1,022,500
(2,467,486)
(3,799,106)
(4,707,501)
(4,579,595)
(3,226,485)
(1,850,452)
Impact of Mayoral Academy

Loss of Revenue to Mayoral
Academy
Offset cost reduction
measures
Forecasted Impact of
Mayoral Academy on
Cranston School District

Forecasted
2012-2013
Forecasted Impact of Mayoral
Academy on Cranston School
District
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
(2,467,486)
(3,799,106)
(4,707,501)
(4,579,595)
(3,226,485)
(1,850,452)
Additional Increase in pension

costs
(5,598,546)
(5,718,347)
(5,696,619)
(5,728,082)
(5,706,243)
(5,684,079)
Opening of full day kindergarten
(1,234,400)
(1,252,900)
(1,271,700)
(1,290,800)
(1,310,200)
(1,329,900)
BEP underfunding
(3,900,000)
(3,900,000)
(3,900,000)
(3,900,000)
(3,900,000)
(3,900,000)
Renovate Middle School Science

Labs
(282,000)
(282,000)
(282,000)
(282,000)
(282,000)
(282,000)
Repairs / Maintenance to school

Buildings
(718,000)
(1,478,000)
(2,178,000)
(2,618,000)
(2,618,000)
(2,618,000)
(16,430,352) (18,035,819)
(18,398,478)
(17,042,928)
(15,664,431)
Other possible adjustments
Capital Projects
Worst Case financial impact on

Cranston School District and City
(14,200,432)
Fiscal Impact Conclusions
Loss of funding to the Mayoral Academy results in the following consequences

to the School District AND the City:
The School District is driven into deficit in the fiscal years FY2013 through FY 2018
from $2.4 million to $4.7 million until the deficit reduction plan is completed. After the
deficit reduction plan is completed, the deficit narrows, but does not go below $1.8
million. Future cost cutting within the District is limited, these deficits will be financed
either through additional concessions or tax increases.
Inhibits the ability of the District/City to fund full day kindergarten. Estimated
additional cost: $1.25 million
Inhibits the ability of the District/City to comply fully with BEP requirements. Current
underfunding estimated at $3.9 million.
Inhibits the ability of the City to implement asset protection and renovate science labs
on School District facilities. Estimated cost ranges from $1.0 million to $2.9 million
per year in future years.
Uncertainty regarding pension reform may impact the School District, and
ultimately the City with additional costs in FY 2013 of $5.6 million, over an
already budgeted increase of $1.46 million. Without pension reform, the School
District faces an increase of $7.0 million in FY2013.
Fiscal Impact Conclusions

BOTTOM LINE
The School District and the City cannot afford the loss of revenue to
the Mayoral Academy. The School Committee prepared a budget to
fund its operations internally and fulfill the deficit reduction plan,
excepting pensions and special education tuitions (being controlled and
mandated at the State level).
Although the School District will be receiving additional funding from
the State, it is not available to fund a Mayoral Academy, but rather it is
the minimum needed to maintain the current educational level and full
its deficit reduction obligations.
The loss of revenue places greater financial strain on the City and its
taxpayers in maintaining School District asset protection requirements,
RIDE current and future mandates (BEP requirements and full day
kindergarten), and potential increased pension contributions.
Necessitating tax increases or withdrawals from the General Fund to
pay for the resulting deficits.
Cranston Public Schools

Questions
Achievement First Mayoral Academy
Fiscal Impact Rebuttal
August 29, 2011

School Committe Mayoral Academy Presentation 8-29-2011 Rev 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

School Committe Mayoral Academy Presentation 8-29-2011 Rev 1

Uploaded by

Copyright:

Available Formats

Cranston Public Schools

Achievement First Mayoral Academy

Cranston School Committee

CPS Mayoral Academy Fiscal Impact Rebuttal

Comprehensive Fiscal Impact Analysis

Fiscal impact statement as prepared by the Mayor is seriously misleading,

CPS Mayoral Academy Fiscal Impact Rebuttal

Comprehensive Fiscal Impact Analysis

Our goal tonight is to remedy this deficiency by presenting the context

CPS Mayoral Academy Fiscal Impact Rebuttal

Comprehensive Fiscal Impact Analysis

Overview of Cranston Public Schools Adopted Budget, submitted to the Mayor

Reconciled Adopted Budget for 2011-2012, as of August 18, 2011, incorporating

CPS Mayoral Academy Fiscal Impact Rebuttal

Relevant Information from Report

The Mayors Fiscal Impact Report contains two relevant pieces of

CPS Mayoral Academy Fiscal Impact Rebuttal

Relevant Information from Report

Local share ($):

Total Per Pupil ($):

Per Pupil ($):

Enrolled Non Low-Income

Enrolled Low-Income (65%):

Total Cranston Enrollment:

Total Funding for Cranston

State share ($):

CPS Mayoral Academy Fiscal Impact Rebuttal

submitted March 9, 2011

SUMMARY EXPENSES BY CATEGORY

CPS Mayoral Academy Fiscal Impact Rebuttal

submitted March 9, 2011

(1,978,096) (2,704,996) (3,487,473) (2,062,155) (1,750,167) (1,464,142)

The Budget contained an additional request of $1,040,000 as an increase in the maintenance of

None of the forecasted expense assumptions were challenged by the audit

CPS Mayoral Academy Fiscal Impact Rebuttal

Revised Adopted Budget,

as of August 18, 2011

State Aid, Increase for RI Funding Formula

Federal Thru State

City of Cranston Appropriation

124,984,378 130,974,588 (1,922,565) 129,052,023

SUMMARY EXPENSES BY CATEGORY

Bus Driver / Monitor Wages

Secretary Salaries / Wages

Custodian Salaries / Wages

Tuitions, Special Education

124,984,378 132,996,380 (3,944,357) 129,052,023

CPS Mayoral Academy Fiscal Impact Rebuttal

Revised Adopted Budget,

as of August 18, 2011

2011-2012 Amendments 2011-2012

State Aid, other

Federal Thru State

City of Cranston Appropriation

124,984,378 130,974,588 (1,922,565) 129,052,023

CPS Mayoral Academy Fiscal Impact Rebuttal

Revised Adopted Budget,

as of August 18, 2011

Custodian Salaries / Wages

Bus Driver / Monitor Wages

Secretary Salaries / Wages

Tuitions, Special Education

CPS Mayoral Academy Fiscal Impact Rebuttal

Revised Adopted Budget,