Common Cents Shared Services Initiative Results

1. Common Cents Shared Services Initiative Results Woodland Hills School District September 2, 2009

2. Agenda

3. Background: Governor Rendell’s 2007-08 budget allocated funds to provide expert advice to school districts to learn about ways they can share services and programs in order to increase the efficient use of tax payer resources and improve service delivery for students. Common Cents offers these volunteer districts free advice – and no mandate. Project Objective: To implement a shared services program across Pennsylvania’s participating school districts as a way to reduce administrative costs and allow school districts to invest more dollars in the classroom. Common Cents Objectives and Goals PROJECT GOALS • Shared administrative services (where it makes sense) • Meaningful savings to drive money back into the classroom • More efficient operations

4. Year 1 Overview and Results

5. Methodology: Project Rollout Common Cents is being implemented across the Commonwealth with an initial Pilot followed by three “waves.” Two-part waves: (1) data collection and analysis; (2) implementation Wave 2:IU 4, 5, 27 Wave 3:IU 17 Wave 1:IU 2,3 Wave 2:IU 13 Pilot:IU 1

6. Methodology: Project Rollout (cont’d) A total of 38 school districts participated in Common Cents in Year 1. Pilot Wave 1 Wave 2 Wave 3 • Jefferson-Morgan • Canon-McMillan • Chartiers-Houston • Ringgold • Pittsburgh • Baldwin-Whitehall • Brentwood Borough • Clairton City • Duquesne City • Plum Borough • Shaler Area • South Allegheny • Wilkinsburg • Butler Area • New Castle Area • Commodore Perry • Farrell Area • Hermitage • Jamestown Area • Sharon City • Sharpsville Area • West Middlesex Area • Conneaut • North East • Northwestern • Ambridge • Blackhawk • Hopewell Area • Lebanon • Athens Area • Northeast Bradford • Sayre Area • Towanda Area • Wyalusing Area • Montgomery Area • Montoursville Area • South Williamsport Area • Southern Tioga

7. Year 1 Project Status The Common Cents Year 1 initiative is in the Implementation phase across all Waves, including the Pilot districts. We Are Here Report Finalization Public Meetings and Pre-Implementation Discussions Implementation Presentations Report Finalization Public Meetings and Pre-Implementation Discussions Implementation Presentations Report Finalization Public Meetings and Pre-Implementation Discussions Implementation Presentations Report Finalization Public Meetings and Pre-Implementation Discussions Implementation Presentations

8. Year 1 Aggregate Potential Savings Total Potential Savings by Wave (Aggregate Mid-Range, Pilot and Waves 1-3)* Total Project-Wide Potential Savings= $8,782,000* *All potential savings figures are rounded to the nearest thousand.

9. Year 1 Aggregate Potential Savings, cont’d. Total Potential Savings by Recommendation Categories (Aggregate Mid-Range, Pilot and Waves 1-3) * *** **** Total Project-Wide Potential Savings= $8,782,000 *Transportation savings figures include specialized transportation and purchasing data. ** General Purchasing savings figures include copier, paper, and office supplies data. ***Finance & Payroll savings figures include delinquent tax collection data (for wave 1-only). ****Real Estate &Facilities saving figures include custodial supply and utilities data.

10. Year 2 Project Rollout and Methodology

11. Year 2 Project Rollout Common Cents Year 2 continues to be implemented across the Commonwealth. Two-parts: (1) data collection and analysis; (2) implementation Year 2:IU 6 Year 2:IU 3 Year 2:IU 12

12. Year 2 Project Rollout, cont’d. Eleven (11) total school districts are participating in Year 2 of the Common Cents initiative. IU #3 IU #6 IU #12 • Woodland Hills • Forest Area • Franklin Area • Oil City Area • Redbank Valley • Valley Grove • Dallastown Area • Dover Area • York City • Red Lion Area • York Suburban

13. Key Project Steps Our approach to Year 2 includes the following key steps: Conduct Group Work Session Data Collection Perform Data Analysis Develop Reports Conduct Public Meetings and Provide Implementation Support • Conduct 2-Day Group Working Sessions to collect category information and best practices • Collect data via templates and follow-up communications • Present recommendations and estimated savings • Provide support for the Intermediate Units and districts throughout their decision-making processes • Supply assistance and materials for districts choosing implementation • Discuss success stories and lessons learned from similar efforts • Perform data analysis • Identify opportunity areas • Develop business cases • Report on findings such as: • - Savings opportunities and related benefits • - Aggregate-level initiatives • Report on findings such as: • - Savings opportunities and related benefits • - Aggregate-level initiatives

14. Woodland Hills Project Results

15. Woodland Hills School District Project Results The table below provides the potential cost savings for the Woodland Hills School District, if the district were to implement the identified opportunities: * Potential Cost Savings are rounded to the nearest thousand.

16. Cost Savings Considerations • The realization of cost savings is dependent on full participation of other school districts. No district may realize these savings on their own. • Many districts already use certain best practices such as participation in IU consortiums and state purchasing programs. Our intent is to grow, enhance, and share these best practices to help districts realize even greater savings.

17. Current Shared Service Arrangements The Woodland Hills School District currently participates in the following shared-service and consortium purchasing arrangements: • Consortiums: -- Intermediate Unit #3 - Office Supplies, Paper Purchasing, Fuel -- US Communities - Office Supplies • Other purchasing programs: --  Member of COSTARS cooperative purchasing program -- Member of the Pennsylvania Education Purchasing Program for Microcomputers (PEPPM) purchasing program • Transportation: -- Shared services with Wilkinsburg School District

18. Woodland Hills Project Results, cont’d Five specific opportunities across several different categories were identified for Woodland Hills during analysis.

19. Summary of Cost Savings Opportunities *Office Supplies includes all General Supplies purchased for the district, including Instructional Supplies. ** Currently, Woodland Hills utilizes COSTARS for Copier purchases and IU#3 for Paper purchases.

20. Summary of Cost Savings Opportunities, cont’d

21. Summary of Cost Savings Opportunities, cont’d

22. Woodland Hill’s Next Steps • Determine which, if any, recommendations to pursue after reviewing with the school board. The Common Cents team will provide support during this decision-making time. For districts that decide to implement, next steps will be to: • Prioritize and weigh each selected recommendation based on potential savings and ease of implementation. • Finalize recommendations and participate in an Implementation Kick-Off meeting with other districts. • Develop an action plan for implementation with guidance from the Common Cents Team.

23. Implementation Support The Common Cents team will work with your district to provide implementation support in the following ways: • Work with the district on implementation action plans • Supply assistance and materials for districts choosing implementation such as: • Implementation Plan Templates • RFP Templates (Request for Proposals) • MOU Templates (Memo of Understanding) • Vendor evaluation lists • Monitor implementation plans to support success

24. Questions?

25. t h a n k y o u