Mayor Fuller has put together a summary of a financial program to help fill some of the Newton Public Schools (NPS) budget gaps and the Horace Mann project after the failure of the general override. The plan includes the following:
Increase pensions via COLA: The plan, which the Retirement Board submitted to the Council, is to reduce the annual funding from 9.6% to 6.6%, resulting in lengthening the funding schedule by one year. The intent is to make available funds to service the debt needed for the Horace Mann Elementary School addition and renovation — a project proposed under the general operating override, which did not pass in March. As noted here, the City Council is seeking to further reduce the percentage, resulting in a further lengthening of the funding schedule.
Contract with a new health insurance carrier: The new carrier will have lower premiums for retirees and phase out the Medicare Part B payment, resulting in a $1.3 million in ongoing savings in the NPS budget phased in over two years.
Move NPS Other Post-Employee Benefits (OPEB) funding to the City budget: This move, reported here, takes NPS retiree healthcare costs out of the NPS budget, relieving pressure on the NPS budget but adding to the City-side budget.
Use of “unusally large” Free Cash:
- Use of $10 million of Free Cash for the Lincoln-Eliot Project (approved 5-0-10 –Councilors Gentile, Grossman, Kalis, Krintzman, Laredo, Malakie, Markiewicz, Oliver, Wright, Albright abstaining and Councilors Baker, Downs, Kelley, Leary, Lipof, Lucas, Norton not voting) resulting in $600,000 on an on-going basis by reducing bonding costs.
- Use of $1.4 million of Free Cash for a “bridge grant” to NPS to cover out-of-district placements to be reimbursed in FY25 — approved 16-0 (Councilors Baker, Downs, Kelley, Leary, Lipof, Norton not voting)
- Use of $560,000 for NPS legal settlements: Alison Larkin v. City of Newton et al (C.A. No 2085-CV-00283) and John Doe, Jane Doe, and David Doe v Newton Public Schools et al (C.A. No. 19-CV-12293-PBS) resulting in one-time savings to NPS.
Use of ARPA: $400,000 of ARPA to be used for summer capital (maintenance) projects that would otherwise be deferred.
The City Council’s Finance and Programs and Services Committee reviewed the proposed FY24 School Committee budget at the joint meeting on May 9. Both Committees took a straw vote on recommending the budget to the Full Council, with the Programs and Services Committee voting 2 in favor (Krintzman and Baker, 0 opposed, and 6 abstaining) and the Finance Committee voting 0 in favor, 0 opposed, and 6 abstaining. Watch the video on NewTV.
