2010 Referendum: Renewing and Sustaining Our Excellence Community Roundtable

1. Welcome! As You Enter Choose any open table Please complete the Participation and Contact Sheet 1

2. 2010 Referendum:Renewing And Sustaining Our Excellence Community Roundtable October 7, 2009 Westlane Middle School 2

3. Calling the Special Session to Order and Welcome Ms. Cheri Harris, President of the Board of Education 3

4. Purposes of Tonight’s Roundtable • To describe the current needs and financial state of the district • To update you on what we learned and experienced since the original Referendum in 2003 • To gather input from Community members about the 2010 Referendum 4

5. Our Commitments • We are here to share information and to listen. • We will publish all the input and feedback you give us tonight on our website at http://www.msdwt.k12.in.us/Referendum.html 5

6. Some Simple Meeting Norms • The restrooms are located outside of the gym. • Please silence your cell phones. • Be sure you have a pad of Post-It Notes and a pen. • We expect you to write your questions, comments, or concerns on the Post-It notes as we go through the presentation (One per Post-It). 6

7. A Little Exercise In Who We Are Tonight • Stand up if you are the parent of a current MSDWT student. • Stand up if you are a grandparent of a student in an MSDWT school. • Stand up if you are a graduate of North Central High School. 7

8. More Demographics • Stand up if you have lived in Washington Township less than 5 years. • Stand up if you have a son or daughter who is a graduate of North Central. • Stand up if you were eligible to vote in the 2003 Referendum Election. 8

9. Before We Start the Presentation, Each Table Should Complete The Following Tasks: • Introduce yourselves to your table mates and tell them how you relate to the district. • Fill out the Participant Information and Contact Sheet. 9

10. First, A Little Background Community Roundtable October 7, 2009 Westlane Middle School 10

11. A Glossary Of Terms • General Fund (GF) - The fund where most of the educational personnel expenses in the district are paid. • Capital Projects Fund - A Fund designed originally to pay for Capital projects – repairs, maintenance of facilities, and associated costs. • Referendum Fund – A fund established by the 2003 Referendum to support the General Fund needs. 11

12. The Four Pillars of the Strategic Plan 12

13. The Power of the Strategic Plan • It keeps First Things First – Student Learning • It is ambitious – For Example, K-12 International Baccalaureate Initiative • It promotes organizational discipline – Accomplishing the Essential

14. The 2003 Ballot Question “For the calendar year immediately following the holding of the referendum, shall the school corporation impose a property tax rate that does not exceed ten cents ($0.10) on each one hundred dollars ($100) of assessed valuation for a term of seven (7) years and that is in addition to the school corporation’s normal tax rate?” 14

15. The Promise – A Board Resolution that Neutralized the Increase “Be it further resolved, that the Board of Education authorizes and mandates the reduction of the 2004 Capital Projects Fund tax rate by that same amount, ten ($0.10), contingent upon the successful passage of the education referendum, to offset the Referendum Fund tax rate increase and keep the tax rate the same for those two (2) funds taken collectively for the same 7 year period, 2004-2010, unless additional amounts are allowed or imposed by future statutory changes.” 15

16. The Literature Said it All 16

17. Result? The ballot question received more “Yes” votes (80%) than “No” votes (20%). The referendum passed by an overwhelming margin and was a part of the 2004 calendar year budget. 17

18. A History Of Promises Kept • No property tax increase resulted from the referendum– promise kept • Maintaining our educational excellence - promise kept • Spending dollars where they help children most - promise kept • Stable property values - promise kept • Recruiting and retaining the best and brightest teachers - promise kept • Balancing the GF budget without cutting teachers and programs - promise kept 18

19. Current Uses of Referendum • Teacher Salaries & Benefits 55.0% • Classified Salaries & Benefits 12.2% • Administrative Salaries & Benefits 8.0% • Budget Deficit Reduction 10.8% • Operating Balance 14.0% 19

20. Referendum Fund Revenue(Tax rate remains $0.10 every year) 2004 $3,922,952 2005 $5,450,455 2006 $5,795,959 2007 $7,306,278* 2008 $7,163,670 2009 Estimate $5,836,000 2010 Estimate $5,925,000 The Referendum Revenue has increased because our Assessed Valuation has increased. 20

21. Assessed Values (AV) 2004 – 2010 YEARAV% INC 2004 $5,382,473,460 2005 $5,326,562,170 (1.03) 2006 $5,558,349,400 4.35 2007 $6,773,497,436 21.86 2008 $6,763,679,942 (0.15) 2009 (Est) $5,491,106,301 (18.81) 2010 (Est) $5,573,472,896 1.02 The Assessed Valuation Decreased in 2009 because of the new Homestead Deductions. 21

22. The Referendum’s Impact On The CPF Rate Rate Cap Ref. CPF % of Rate 2004 $0.4167 $0.10 $0.3167 23.99 2005 $0.2611 $0.10 $0.1611 38.30 2006 $0.2609 $0.10 $0.1609 38.33 2007 $0.2245 $0.10 $0.1245 44.54 2008 $0.2245 $0.10 $0.1245 44.54 2009(E) $0.2245 $0.10 $0.1245 44.54 2010(E) $0.2245 $0.10 $0.1245 44.54 The relative impact of the 2003 Referendum on the CPF has grown over the years. 22

23. So, What Has Changed About The Uses Of The Capital Projects Fund? Fixed and Recurring Costs in CPF Total $9.4 Million and Include: • Greater costs for skilled craftsmen, security, and similar needs • Increased energy costs • Aging buildings that are now 7 years older and in need of repairs • Technology needs and costs, including a schedule for refreshing technology 23

24. Part 2:A Short Primer on Our District Finances Community Roundtable October 7, 2009 Westlane Middle School 24

25. Financial Realities - Revenue Analysis and Inflationary Factors Schools are funded from a variety sources. The most important source is State support based upon enrollment. The State Funding Formula determines the amount of total revenue schools will receive from the State, to Fund Programs in the General Fund. 25

26. 2008 Marion County Township School Tax Rates 26

27. Historical Notes About Our Financial Performance • We ended 2005 with a $547,000 deficit. • In 2006-2007 we reduced the General Fund budget by $1.6 million. • In 2007 we reduced the budget by about $600,000. • In 2008 Harcourt and Wyandotte were closed to reduce operational needs by $800,000 annually. • The School Board has passed Policy 6210.01 requiring MSDWT to begin to build an operating balance in 2008. • We closed out the 2008 budget with a $6.8 Million Operating Balance. 27

28. Financial Realities and Issues – Our Challenges • High quality programming in schools is delivered by talented and dedicated staff. • Certain costs continue to rise at higher rates than inflation (e.g., health insurance, utilities, other costs related to petroleum, etc.). • State funding has historically not kept pace with inflationary pressures. 28

29. The Bottom Line • There is not enough revenue in the General Fund to support the high quality programming the citizens of Washington Township have demanded for our children. • The State will not solve this problem for us with a significant increase in State funding. 29

30. Let’s Pause for a Moment Take a few Moments to jot some Questions, Comments, or Concerns (QCC) on your Post-It Notes Remember – One QCC per note! 30

31. Part 3: Lessons Learned and Developing a Solution Public Forum October 7, 2009 Westlane Middle School 31

32. Lessons Learned Since 2003 • Our Capital Projects Fund (CPF) has developed into a fund that must accommodate fixed and recurring expenses. • Technology expenses have grown. • Our growing Referendum has increased pressure on our CPF. • Our CPF and Referendum Fund will decline in size due to the decrease in our Assessed Valuation (Homestead Tax Deductions and Tax Caps). 32

33. More Lessons Learned • Our aging buildings are going to require more maintenance and extensive repairs to be funded through CPF. • The structure of the Current Referendum will continue to reduce the size of the CPF. 33

34. More Lessons Learned • Renewing the referendum must be a grass roots effort on the part of the community to continue the great educational programming of the district. • Transparency and openness will be keys in conducting this conversation within our community. 34

35. Designing the 2010 Referendum Getting on with the Process 35

36. Principles of the Referendum • The Referendum should not constitute an increase in taxes. • The School Board’s role is to give the community a financially sound, fiscally responsible, and sustainable plan to continue the excellence of our district by providing additional support for our General Fund. 36

37. Principles, Continued • The passage of the referendum must be a grass roots effort in our community. • The referendum must be used to maintainthe health of the General Fund and high quality educational programs for our children. 37

38. Principles, continued • The dollar amount raised in the first year of the referendum (2011) must be fixed for the seven year period. • We will not build a “cash balance” in the Referendum Fund. 38

39. Considering Four Options And Their Ramifications Understanding The Results Of Any Action 39 39

40. First, A Few Words On the Core Work of the District • Our mission is to build the mind and character of every student by teaching the academic, creative, and social skills needed to achieve excellence. • The core functions of the school district are learning and teaching.

41. Option #1 Do Nothing And Let The Current Referendum Expire At The End Of 2010. 41 41 41

42. Words of Warning About Conjecturing About Future Cuts The primary result would be to reduce the General Fund by $5.3 Million The only way to do this is by reducing the number of people and programs available to our children. The final plan would look like this. 42 42

43. What Reducing the GF Budget by $5.3 Million Might Include 43 43

44. What Reducing the GF Budget by $5.3 Million Might Include, cont’d. 44 44 Total - $5,366,500

45. Beyond The Numbers, What Can People Expect? Class sizes will increaseK-12. Some elective and enrichment courses will be eliminated at the high school and middle schools. Safety and order in our schools will be jeopardized by a reduction of supervision and student services. 45 45

46. Beyond The Numbers, What Can People Expect? - Continued Fine arts and athletic programs will befewerin number. We could resort to pay-for-play, but equity and access issueswill arise as a result of the financial need of many children. There will be fewer resourcesfor children at risk or in need. 46 46

47. Beyond The Numbers, What Can People Expect? - Continued There will be fewer opportunities for excellence and enrichment because of fewer higher level academic choices. The K-12, IB program will become less viable. 47 47

48. Beyond The Numbers, What Can People Expect? - Continued The district will become less desirable for talented teachers and administrators. Continued excellence will be compromised. 48 48

49. Beyond The Numbers, Is there an Upside of this Option? The budget will be balanced and we will be living within the level of support determined to be adequate through the State Funding Formula.

50. Option #2 Ask voters to approve a referendum the size of the one we currently have and continue to neutralize the impact of the referendum tax rate against the Capital Projects Fund rate. 50 50 50