** Moderator Comment **

The school committee will be discussing these options this Saturday, June 7th, 8am at Triplett School (not Thompson).

The following document is a scanned version of one distributed and briefed by Dr. Canole at last night's council/school committee joint workshop.

** End of Moderator Comment **

Options for Addressing Newport Public Schools 1.6 Million Dollar

Funding Gap in 2003-2004

Red Option

1. Request state override of city 5 1/2% tax cap to support the entire 1.6M funding gap.

1. Surplus one of the six existing elementary schools before August 1, 2003. Surplusing this school could potentially save $170,000. Sell this building during the 2003-2004 school year. The building sale could potentially yield $1,000,000+. Apply proceeds to pay the 2003-2004 funding gap.

2. Institute a temporary administrative restructuring plan with a potential savings of $210,000.

3. Open another early retirement window for Council 94 and TAN members with a potential savings of $50,000.

4. Review balance of funds remaining in the TMS building project after the commissioning process is complete. These funds can be applied to 2003-2004 debt service. Use the budgeted city funds earmarked for debt service in 2003-2004 to offset the remainder of the 2003-2004 funding gap.

1. The School Department will request a 1.6M loan from the City to be paid back over the next five years to fund the existing 2003-2004 funding gap.

1. The City agrees to fund the balance of the 1.6M funding gap provided the following is done:

· Any additional state and applicable federal funding- received is applied to offset the funding gap;

· Any 2002-2003 surplus funds identified in the school budget will be applied to offset the funding gap;

· Any available funds remaining in the TMS building project after the commissioning process is complete will be assigned to the 2003-2004 debt service;

· Any funds resulting from additional consolidation of administrative/contractual positions is applied to offset the funding gap;

· A City/School agreement is entered into for the purpose of reducing the number of elementary schools in Newport over the next 6-8 years with the first school to be closed at the end of the 2003-2004 school year. The determination of which schools to close will be made by the School Committee after receiving a recommendation from a city/school/community advisory subcommittee after their extensive review and consideration of the recent NESDEC Space Study and public testimony is received;

· The proceeds from this building sale will be put towards the renovation/addition of space in a designated remaining school.