By ETHAN HARTLEY As the fiscal year continues to draw towards a close on June 30, and as updated figures become known, the school department once again presented an update as to their financial situation during Tuesday night's special meeting of the
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As the fiscal year continues to draw towards a close on June 30, and as updated figures become known, the school department once again presented an update as to their financial situation during Tuesday night’s special meeting of the Warwick School Committee.
Things have not magically improved, and the district projects to be looking at a $4.6 million deficit due to a combination of unbudgeted expenses, salary costs and out of district tuition payments. That’s about $309,000 down from their summary report projected in November, which stems from some slight decreases in expenses but also reflects a $10,000 reduction in projected revenue.
“This is just an advisory as to where we currently stand,” school finance director Anthony Ferrucci reported to the committee Tuesday night.
While much of what makes up the budgetary crisis remains the same – including the approximately $1.7 million that isn’t budgeted for regarding principal and interest payments stemming from a 2006 construction bond and close to $1 million in out of district costs that the district attempted, unsuccessfully, to get waived under a reasoning of financial hardship – other expenses were detailed during the report as well.
These include an additional $247,000 in unemployment that had to be paid out to teachers and staff that were laid off to begin the school year when budget cuts first began occurring. Ferrucci estimated this expense would rise to $350,000 by the end of the year, and the original budget included only $100,000 for this expense. In that same vein, fringe benefits account for a $674,500 overrun as layoffs did not produce the savings that were anticipated in medical expenses.
Salaries came in at about $979,000 over budget due to necessary hiring that occurred throughout the school year to fill gaps and a $514,000 contingency that was placed in the salary line item last year as a measure to prevent the proposed cutting of sports programs at the secondary level. This contingency still must be funded from somewhere, Ferrucci explained.
Purchase services are projected 4.9 percent over budget to the tune of $112,000 including over $51,000 in contracted nursing services and $20,000 in legal fees. Since the district’s waiver for out of district tuition to adhere to the state’s Pathways program was denied, the district owes close to $1 million towards this effort or they risk losing additional state funding.
Ferrucci explained these challenges do not take into consideration the cost of bringing custodians back, which he said would require an additional $180,000.
However, he said that the schools are meeting with the city for continued mediation sessions soon to try and come to some resolution regarding the situation.
“I'm hopeful our meetings coming up in the next week and a half will get us to resolution for this year,” he said.
In a solemn, symbolic gesture, the school committee voted down a measure by a 3-2 vote (David Testa and Nathan Cornell voted in favor) to fund a professional development opportunity at the Highlander Institute for 90 teachers at a cost of $17,610.
While the merits of the professional development were not lost on any of the committee members, chairwoman Karen Bachus referenced a recommendation from the district’s attorney that any unbudgeted expenses approved during this budgetary crisis could potentially reflect negatively on negotiations ongoing.
“This is an issue that has come at a bad time,” she said to open the discussion, citing that the district was in “dire financial straits.” “Our lawyer has advised us not to go forward with this. I trust him. I believe that he knows what he's doing and that he cares about the good of education in Warwick and what is good for children. This could backfire and we could lose 10 times that or more.”
Committee member David Testa also conferred with the district’s attorney and originally agreed with the notion to deny allocations that weren’t specifically budgeted for, but he said he came to a different understanding by the time to vote.
“If this is integral to teaching blended learning, which is integral to achievement, I have to support that,” he said. “I understand what the attorney said, I do. But I don’t think that if this body approves this that we're being brazen in any way. This isn't like buying Persian rugs for Gorton. This is professional development.”
“I would hate to not do this for our teachers and our students,” said vice chair Judy Cobden, who would eventually vote against funding the conference. “It's just a hard call because we are stuck underneath a rock right now and are being scrutinized.”
Testa moved to approve the expenditure regardless, which was voted down by Bachus, Cobden and Kyle Adams. Nathan Cornell voted to approve along with Testa.
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bendover
This could be laughable were it not so pathetic. This city is a financial train wreck and the department with the largest chunk of the budget is being run by folks with OTJT...(on the job training). If ever you needed folks with accounting, performance or forensic audit backgrounds or MBA's, this is it...We are not even close and this was no accident or coincidence how we ended up this way. I have no idea how this will be resolved by this crew. The citizens have largely checked out, just look at the attendance at budget hearings or school committee meetings and in some cases I can't blame the citizens..."Executive session" is used way too much...That is where bad things happen. We shall see if the pain threshold, tax wise, has reached the boiling point or will the sheep simply be led to slaughter. You will find out over the next 3 months, both here and at the State level...Here is hoping....
Thursday, March 28, 2019 Report this
richardcorrente
The professional development expenditure is a good idea that unfortunately arrived at an unaffordable time. It was right to have it denied this year, but reconsidered in the future. Merits of this and other programs are not "lost on any committee members" but the fiscal restraint of THIS School Committee is a distinct upgrade from the past. Our schools, students, teachers, parents and taxpayers are already benefitting.
Happy Spring School Committee members of 2019.
Happy Spring everyone.
Rick Corrente
The Taxpayers Mayor
Thursday, March 28, 2019 Report this
Cat2222
Very glad they teachers union decided to let this one go. There would have been quite a few raised eyebrows if they fought for their professional day after many hundreds of students went without the "extras" that other years got due to the prolonged contract negotiations. When you don't have the money you have to make cuts. Everyone has to sacrifice something in order to work towards an equitable solution.
Friday, March 29, 2019 Report this
MisterP
Cat. You have it wrong. This had nothing to do with a professional day which the teachers already declined to do. That
professional day was optional and the teachers realized the cost savings and understood when it was canceled.
The teachers' learning opportunity discussed above was something that the teachers mentioned volunteered to go to on their own time. The cost involved was the school department paying the fee for the teachers to attend the professional development----that was the money saved.
Monday, April 8, 2019 Report this