2019-20 Budget Gap

1. DRAFT BRIDGEPORT SCHOOL DISTRICT 2019-20 Budget Gap Aresta Johnson, Superintendent IMPACT ON EDUCATION March 2019 V7

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salary increases • Health insurance – premium increases • Internal Service Fund (ISF) – compensation for surplus funds withdrawn in prior years, no longer available in FY20 • Loss of or reductions in Federal/State grants for services either mandated or deemed essential to continue.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. • A district of approximately 21,000 students, [20,384 as of 10-1-2018], the second largest in Connecticut, Bridgeport has added over 400 in student enrollment over the last five years. • 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. 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 • Projection: -3 teacher positions (TBD)

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 = $8.4M (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 several years and potentially again in 2019-20, 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. • The current situation is most grave, as Bridgeport has reached the point at which the educational program, which can be sustained within the expected funding levels, is at or below the bare minimum. • 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.