2013-14 Budget Recommendations

1. 2013-14 Budget Recommendations January 9, 2013

2. OPERATING REVENUE FORECAST 2012-13$212.3 MILLION

4. Background and History • Supportive community and relatively stable tax base • Past decade of support by community • Passage of bond issues in 2004 & 2008 • Passage of tax increase in 2006 • Period of growth when others were cutting • Added programs/services and implemented more than $160 million in school upgrades

5. Background and History • Economic downturn since 2007 – negative impact • 2011-2012 operating revenue less than 2007-2008 • Expenditure growth kept to 2.8% annually • Still forced to utilize reserves to balance budget • Not sustainable – reserves dropped below minimum requirements last year

6. Revenues, Expenditures & Fund Balance

7. Why Restore the Fund Balance? • Prevents district from borrowing money (and pay unnecessary interest fees) each fall before property tax revenues come in. • Could jeopardize AAA Bond Rating, which would result in higher costs to taxpayers due to higher interest rates. • Board policy requires us to restore it within 4 years any time it dips below required level.

8. Background and History • In 2011, decision made to begin cost containment • Phase in over two years • Combined approach – decrease expenditures and increase revenues • First year goal (2012-13): • Reduce $8 million from operating budget • Increase revenues through operating rate increase • Second year goal (2013-14, where we are now): • Reduce operating budget by additional $2-$4 million • Restore fund balances to board policy requirements

9. Approved Reductions: 2012-13 Projected Actual Annual First-Year Savings Category Savings Savings District administrators & dept. support staff $1,237,000 $1,287,000 Operating budgets $ 750,000 $ 750,000 Greater efficiencies $ 950,000 $ 850,000 Personnel supporting teachers and students $1,891,000 $1,891,000 Teaching assistants & school secretarial staffing $1,122,000 $1,122,000 School instructional staffing $1,934,800 $1,314,800 New revenues $ 160,000 $ 160,000 TOTAL $8,044,800 $7,374,800 First Year Reduction of 127 Full-Time and 36 Part-Time Positions (no teacher layoffs, minimum full-time position layoffs)

11. Budget Committee Members SUPERINTENDENT’S ACTION TEAM

12. Budget Committee Members

13. Budget Committee Members

14. Budget Principles • Our strategic plan is our roadmap in budgeting. • Cannot compromise the strategic plan. • Best approach is multi-year budget planning. • Deficit spending is not sustainable. • Fund balance parameters must be maintained over time. • Goal to achieve 80/20 ratio of personnel to operations (currently 85/15). • Staffing models must be established and followed. • Classroom staffing is priority. • Cannot compromise PD/support of staff. • Budget process must be transparent. • Budget reduction personnel decisions must be sustainable over time. • Budget reduction decisions must be systemic.

15. Recommendations • Seven Areas • District Administrators & Departmental Support Staff • District Operating Budgets • Greater Efficiencies • Personnel Supporting Teachers & Schools • School & Program Secretaries • High School Staffing Model • New Revenues

16. Recommendations • Administrators & Departmental Support Staff • Reduce approximately 18 positions over two years • 4 to 6 Administrators • 4 to 6 Teaching, Learning & Accountability Division • 6 Facilities/Operations Division • 2 Student Services Division • Total: $1.2M – $1.4M

17. Recommendations • District Operating Budgets • Reduce program budgets and school budgets by 5% • Reduce out-of-district travel and speakers/ consultant fees • Reduce textbook matrix budget • Suspend tuition reimbursement program • Total: $750K – $850K

18. Recommendations • Greater Efficiencies • Reduce utility costs • Restructure 6th grade Outdoor School • Implement electronic bus stop notifications • Summer school restructuring • Eliminate or seek external funding for back-to-school kickoff event • Adjust extra duty budget (reduce proposed increase) • Total: $290K – $390K

19. Recommendations • Personnel Supporting Teachers & Schools • Eliminate 3 middle school math facilitator positions • Total: $150K – $200K

20. Recommendations • School & Program Secretaries • Reduce 3 high school staff secretary positions (to match middle school framework) • Reduce 3 to 5 positions within district-level departments • Total: $170K – $225K

21. Recommendations • High School Staffing Model • Reduce 3 positions per high school (12 total) • Total: $650K – $850K

22. Recommendations • New Revenues • Increase VST revenue (by maintaining current enrollment level) • Increase rental fees for building and athletic field usage • Total: $100K – $150K

23. Recommendations Summary • Administrators & Support Staff: $1.2M-$1.4M • Operating Budgets: $750K-$850K • Efficiencies: $290K-$390K • Personnel Support: $150K-$200K • School/Program Secretaries: $170K-$225K • High School Staffing Model: $650K-$850K • New Revenues: $100K-$150K • TOTAL OVER 2 YEARS: $3.3M– $4.1M

24. Proposed Reductions: 2013-14 Actual Proposed 2012-13 2013-14 Savings Category Savings Savings District administrators & dept. support staff $1,287,000 $1.2M - $1.4M Operating budgets $ 750,000 $ 750K - $850K Greater efficiencies $ 850,000 $ 290K - $390K Personnel supporting teachers and students $1,891,000 $ 150K - $200K School and Program Secretaries $1,122,000 $ 170K - $225K High School Staffing Model $1,314,800 $ 650K - $850K New revenues $ 160,000$ 100K - $150K TOTAL $7,374,800 $3.3M - $4.1M

26. Area Budget Meetings All meetings will be held from 7-9 p.m. in the school cafeteria.

27. Long-term Recommendations/Study • Areas for future study to fulfill Goal 6 of Project Parkway (efficiency) • Middle school model • Flexible coursework and extended learning • High school campus study • Student intervention programs • Others

28. QUESTIONS?