School spending could cost millions in Lynn

LYNN – A school spending shortfall potentially poised to cost the city millions of dollars is – for now, at least – an ongoing negotiation topic for city and state officials.The talks center around an $18.6 million “net school spending” shortfall identified on the state Department of Elementary and Secondary Education website and confirmed by department spokeswoman Jacqueline Reis.”This does not include the $1.7 million that the mayor allocated to the schools last week, so the FY15 (Fiscal Year 2015) shortfall is really $16.9 million,” Reis said.With discussions continuing and Mayor Judith Flanagan Kennedy in the beginning stages of crafting a city spending plan for next year, net spending is an issue that has returned to haunt the schools for yet another year.According to the state website, the city’s required net school spending requirement is almost $198 million, but the $179 million current city commitment listed on the state website represent 90 percent of the state spending requirement.”There is no immediate detriment to the city’s finances,” Kennedy said.When state officials warned in February 2014 that Lynn had dropped $8.5 million below state minimum local school spending requirements, Kennedy and city budget officials turned to state legislators for help.State Rep. Robert Fennell and state Sen. Thomas M. McGee worked initially on a plan to ease Lynn’s school spending obligation by allowing the city to begin counting retired teacher health insurance costs as part of the complicated state spending formula.The plan expanded into legislation to allow the city to gradually begin counting retired teacher health insurance costs over four years, beginning in 2015. The insurance calculation will have to be reviewed by state officials.Current talks are aimed in part at keeping the city from being penalized for its current net spending commitments.”That remains a potential but it has not been assessed at this point,” Reis said.