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2014 Budget Planning

2014 Budget Planning. March 28, 2013. Michael E Finn, CFO. Overview. Overview of District spending Data driven decision making Previous funding and reductions summary Recommended reductions for FY 2014 Overview of decision process Financial impacts

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2014 Budget Planning

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  1. 2014 Budget Planning • March 28, 2013 Michael E Finn, CFO

  2. Overview • Overview of District spending • Data driven decision making • Previous funding and reductions summary • Recommended reductions for FY 2014 • Overview of decision process • Financial impacts • Operational overview of reduction implementation • Revenue generating recommendations

  3. auditor general annual report on school district spending FY2012

  4. Cost Measures Relative to Peers

  5. Spending per Pupil

  6. Per Pupil Spending Comparison (percentage)

  7. Student and Teacher Measures

  8. Financial Stress Assessment

  9. Previous Reductions

  10. Reductions Previously Implemented • DAC- 21 positions eliminated • 6 Administrative positions • 12 Classified positions • 3 Curriculum specialists • Maintenance – 20 positions eliminated • Realized through centralized landscaping program • Transportation – 39 positions eliminated • 15 Bus drivers • 20 Bus assistants • 4 Transportation office assistants

  11. Reductions Previously Implemented • School Sites -116 positions eliminated • 30 PAL assistants • 14 High school clerical positions • 28 ELL assistants • 7 High school SpED support clerical positions • 6 High school audio visual specialist positions • 21 Intervention specialists and high school counselors/advisors • 10 Instructional Specialists

  12. Current Reductions for 2012-2013 • Retirees moved from District plan to ASRS and retiree health care reduced and phased out • Traditional health care plan considered a buy up plan and contributions to Health Savings Accounts reduced • Reductions made to Special Education programs • Centralized Maintenance Program established • Part-time custodians

  13. Current Reductions for 2012-2013 • Reductions made to PTC • Elementary special areas reduced • Revised classified staffing models for all schools • Managed Document Services

  14. Summary of Reductions in State Funding to PUSD FY2010-2013 (4 years) • Soft Capital - $14M • Unrestricted Capital - $8M • Building Renewal - $24M • 2% inflationary factor - $13M • Career Ladders - $4.8M

  15. Process for recommendations

  16. Process for Recommendations • Began meeting with Budget Collaboration Team in October • Held a total of 8 meetings • Met with Association Advisory • Held final meeting to review Budget Collaboration Team recommendations and help define operational plan and fee collections • Study Sessions with Governing Board

  17. Consideration List • Close Elementary • Block Scheduling Adjustment • Relocate PTC • Reduce Librarians to one per cluster • Reduce Nurses to one per cluster • Eliminate Pull out for Gifted • Reduce Elementary Guidance to one per cluster • Postage at HS • Transportation Efficiencies • Reductions at DAC

  18. Fiscal year 2014 assumptions

  19. Funding Planning Assumptions • ADM for funding purposes to increase 101 students • Overall funding per student to remain the same • 2% increase to Base Support Level will not be additional monies for FY 2014

  20. Expense Planning Assumptions • Increases $4.45 M • ASRS to increase .8% • District portion is .4% or $400K • Health Care to increase $3.3M • Apply premiums collected from buy up option to increase $1.3M • Plan remainder of increase of $2.0M in M&O expense • Utilities to increase $500K • Additional staffing to address K-2 Prep time $250K

  21. Options and discussion for fiscal year 2014

  22. Recommended Reductions for FY 2014-Continuing 3-5 Year Plan • Additional $1.7 million in Function 200 • Change pull out gifted to cluster model - $685K • Additional reductions in Special Ed - $1.015M • Finalize part time custodial and centralized maintenance transition $500K • Relocate PTC $500K

  23. Recommended Reductions for FY 2014 –Additional Site Reductions • Restructure library staffing -$1.1M • Replace with classified personnel • Eliminate elementary guidance - $568K • Reduce postage and printing by 50% - $125K • Restructure nurse staffing • Replace RN position with LPN where appropriate through attrition

  24. Recommended Reductions for FY 2014 –Support Services Reductions • Transportation $165K • Field Trips • Continue to charge hourly driver wage but add $2.25 per mile additional charge for optional field trips • Enforce minimum of $5 per head field trip transportation charge • Tax Credit eligible • Close Transportation offices on Fridays during the summer • Adjustments in staffing

  25. Recommended Reductions for FY 2014 –Support Services Reductions • DAC $200K • Elimination of positions • Food Services $500K (revenue increase) • Increased revenue from meeting new USDA regulations • Focus on A la Carte sales to 6th-8th grades • Focus on free student participation • Building and Facilities $180K • Elimination of positions • Information Technology $145K • Reduction in support contracts and training budget

  26. Dr. Cruz Overview of Changes to educational and programs

  27. Restructure of the Project IDEAL Program • Administration recommends the restructuring of the Project IDEAL Program • New Programming Plan • Students • Cluster students together in grade level classroom • Access to individualized learning opportunities that focus on area(s) of giftedness • Competitions/Showcases • Affective support • Teachers • PD for cluster teachers

  28. Restructure of the Project IDEAL Program • Retain 7 Gifted Specialists • PD for cluster teachers • Testing (required by the state) • Parent meetings • Competitions/Showcases • Affective support for students • Modeling of lessons for cluster teachers • Overall Average Savings to District: $685,000

  29. Elementary Guidance Program • Administration recommends the elimination of the Elementary Guidance Program • New Programming Plan • High School/CCR Transitions would be covered at the local level by a teacher on each elementary campus; • A stipend and training would be provided • Bullying Program would also fall at the local level

  30. Elementary Guidance Program • Intervention • Implement a tiered model of affective support for students using our Psychologists and Behavior Specialists • Develop and implement a district-wide Threat Management Team • Add two positions to help support and coordinate intervention and outside resources • Overall Average Savings to District: $568,000

  31. School Librarian Program • Administration recommends to restructure certified library program • Programming Plan • Library will be staffed with a Library parapro • Training will be provided • Lessons will be provided • Library will still be used as a prep period for teachers • Overall Average Savings to District: $1,100,000

  32. Staff Impact • Teachers • Due to the high number of retirements, we are anticipating being able to absorb 95% of our talented people back into our classrooms with students

  33. Revenue Generating and revenue collection

  34. Revenue Generating Recommendations • Develop in-house special services programs to reduce tuition out • Expand Civic Center revenue opportunities • Glendale pool rentals • Selling or in-kind trade of district property • Voter approval required for a sale • Northern bus yard • Expand e-campus opportunities to students outside of PUSD • Develop program that would offer diploma

  35. Collecting the Fees • All participation fees reconciled (3 ways to do so) • Paid for by participant • Paid for from designated tax credit donations or moved over from greatest need • Waived by Principal for economic hardships • Pay to Play • Game jerseys not provided until payment is made • Students removed from Kinder Academy after 30 days delinquent • Credit card payment option now available for Kinder and Preschool payments • $48K collected in February alone

  36. Collecting the Fees • All classroom fees collected or reconciled through gifts and donations • Students denied additional purchases if outstanding balance exists • Participation fees • Parking • Yearbook • Classroom fees • Elementary debt follows to High School

  37. Health Care Benefits

  38. United Health Care • Bring parity to different health care plan design options • Historically, 90% of participants do not meet their deductible • Most of those are in the Consumer Driven Plan (CDHP) • 68% of Traditional Plan Participants did not reach their $750 deductible • Reduce Health Savings Account (HSA) contributions • Modest increase to Traditional Plan buy up • Adding an additional dental plan and moving Delta Dental to a dental buy-up option

  39. United Health Care • Consumer Driven Plans • Reduce HSA contributions from $1750 per year to $1250 per year on the HSA2500 plan • Reduce HSA contributions from $750 per year to $250 per year on the HSA1250 plan • Continue to contribute additional $250 for wellness (PREP) program

  40. United Health Care • Traditional Plan • Increase monthly premium for buy-up by 8.5% to $86.80 for employee only to account for general increase in health care • Does not cover the difference between buy up premiums and plan performance • 1375 member and $1.7M over plan • Increase out of pocket max from $2500 per covered family member to $4500/$9000 to better match Consumer Driven Plan • Co-pays will continue to be excluded from the out of pocket max calculation • No increase in prescription co-pays

  41. Dental Plan • Offer additional option to employees through Total Dental Administrators (TDA) pre-paid dental plan • Smaller network • No annual max benefit • Free to employees • Reduced family premiums and expenses • Continue to offer Delta Dental as buy-up option • Must charge some employee premium to avoid penalties from Affordable Health Care Act • Move to multi-tier to match health care

  42. Employee Only : Monthly Premiums for FY 2013-2014 • CDHP 1250 or 2500 = $0.00 (no change) • Traditional plan = $86.80 (+$6.80) • Prepaid Dental = $0.00 (new benefit) • Delta Dental buy up $TBD • EBT Meeting on March 26th

  43. Employee Plus Spouse: Monthly Premiums for FY 2013-2014 • CDHP 1250 = $ 326.20 (no change) • CDHP 2500 = $ 197.11 (no change) • Traditional plan = $ 601.42 (+$47.11) • Prepaid Dental = $ 9.28 (new benefit) • Delta Dental buy up $TBD • EBT Meeting on March 26th

  44. Employee Plus Child(ren): Monthly Premiums for FY 2013-2014 • CDHP 1250 = $ 260.96 (no change) • CDHP 2500 = $ 157.69 (no change) • Traditional plan = $498.49 (+$39.05) • Prepaid Dental = $ 11.55 (new benefit) • Delta Dental buy up $TBD • EBT Meeting on March 26th

  45. Employee Plus Family: Monthly Premiums for FY 2013-2014 • CDHP 1250 = $ 619.79 (no change) • CDHP 2500 = $ 374.50 (no change) • Traditional plan = $1064.58 (+$83.40) • Prepaid Dental = $ 13.60 (new benefit) • Delta Dental buy up $TBD • EBT Meeting on March 26th

  46. Short Term Disability Changes-Voluntary • Added a 6 month coverage policy with a 5 day waiting period • Completely optional coverage • Complements the sick-leave bank coverage • Eliminated need for District provided Interim Disability Coverage saving average of $200k per year

  47. Other Voluntary Benefits • No changes to other voluntary benefits • Vision • AFLAC • Life Insurance • Change provider to ING • 20% reduction in premiums • Guarantee issue enrollment of $150k during open enrollment

  48. Questions

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