Massachusetts budget woes could still sting Needham schools

Massachusetts budget woes could still sting Needham Schools

By Steven Ryan
Wicked Local Needham
May 28, 2009

Needham -

The state’s recent budget woes may leave Needham Public Schools’ operating budget unscathed this fiscal year - but the town could see less Massachusetts School Building Authority money for Newman School renovations.

Needham stands to lose $640,000 in state education aid in fiscal 2009 after the commonwealth’s projected tax revenue came in about $1 billion short last month. Federal stimulus dollars will be used to avoid a town budget meltdown.

“There’s no time to correct a loss of money of that magnitude,” said Needham Finance Director Dave Davison. “What we couldn’t do is make up a deficit in the last day of the fiscal year.”

Needham Public Schools have applied for federal stimulus funding to offset the $640,000 loss in Chapter 70 education funding. The town has budgeted for the lost money in fiscal 2010, Davison said, by assuming a 10 percent “across-the-board” cut in education funding when drafting the budget.

“They’re asking us to use one-time money for continuing operating expenses,” said Selectman Jerry Wasserman.

In another state budget development that could affect Needham, the Massachusetts School Building Authority no longer has a funding floor, Davison said. Previously, Needham was expecting at least a 40 percent reimbursement if the MSBA followed through with intentions to help the town pay for renovations to the Newman School’s heating and ventilation system.

Now, without a funding floor of 40 percent, the town doesn’t know what kind of help it might receive from the MSBA. Although there are still funding guidelines for reimbursing qualified projects, they’re merely recommendations rather than mandates, Davison said, leaving greater uncertainty.

“I would hope the MSBA won’t drop below 31 percent,” Davison said.

The Newman School renovation is projected to cost about $20 million and will likely require an override. The renovations come after a feasibility study last summer determined the school’s entire system was on its last legs.

As for the new state aid cut, the town initially saw about a $211,000 cut in state aid back in January. At the time, Gov. Deval Patrick left education untouched. The stimulus money to replace the $640,000 comes from funds intended for fiscal 2011, School Committee member Michael Greis said.

Greis noted the town would be responsible for tracking the stimulus money sent its way to cover this year’s budget since the school department will be limited in how it can spend the money.

“We have to apply it to the right things because it’s stimulus money,” Greis said.

Greis said the schools were unsure of how much federal stimulus money it would have received in fiscal 2011.