Minutes 03/30/1999 - Laserfiche WebLink

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March 30, 1999 In looking back over funding for Portsmouth Schools for the last five years, it is interesting to note that the Schools' revenue growth has outpaced that of City revenue growth by more than 10%, with the majority of the increase being State funds. [Figure 7] The State funding formula is largely based on the fiscal stress of a locality - the more fiscally stressed a City, the greater the level of funding by the State. The City level of funding for schools has increased 11% over the last three years and exceeds the State's match requirement. Figure 7: Cumulative Revenue Growth 41.5% 95 96 97 98 99 O0 / [] City % change [] Schools % change (w/o City) / L J It is also interesting to look at the history of salaries in public education over the last few years, especially for teachers. The total percentage increase for teachers salary from 1995 to those proposed in the 2000 budget is 18.75%, which exceeds the amount of City employee pay raises in the same time period by 1.25%. Like the City government, the Schools are dealing with a considerable backlog caused by financial choices and constraints of the past. A good example of this backlog is the $72 million facilities plan presented by the School Administration at the joint retreat of City Council and the School Board in February. The City is certainly sensitive to facilities needs, especially given that the primary source of funding facility maintenance and construction is through the issuance of City general obligation bonds. These bonds are funded through annual debt service payments of which the schools currently represent approximately $8 million or half of obligation. We have made it clear that the School Board should ensure that its facilities plan should be comprehensive and include all projected needs; should be a plan that has commitment and staying power so that major changes to the plan would not be anticipated; and should be addressed within the totality of funds that are available for the purpose. Those funds would include year-end close-out funds of the Schools, which over the last three years, City Council has agreed to reappropriate any unspent funds. State law requires that unspent funds be returned to the locality. This enhanced flexibility offers the School Board the opportunity to fully evaluate and prioritize their spending needs once the amount of year-end surplus can be reasonably projected without the pressure to obligate all budgeted funds prior to the close of the fiscal year. Finally, it is interesting to note that, contrary to some public perceptions, the Schools maintain significant flexibility in allocating the funds that come from both the State and the City governments. The City appropriates a lump sum for the Schools which is spent totally at the discretion of the School Board. The State provides funding for education in two different categories: automatic based on student population and funding for specific purposes that the Schools must certify to amounts spend in order to receive the funding. Total automatic state funds for FY2000 are $51 million or 77% of total state funding, that when combined with the funding from the City, provides $89 million of discretionary dollars and represents 84% of the School's Operating Fund. In addition to this $89 million for FY2000, the state has appropriated $3.4 million in additional school funds for the FY99 budget year that also may be used at the School Board's discretion.