Board Budget Policy Discussion

1. Board Budget Policy Discussion 12 March 2012

2. Revenue “levers” • Enrollment (Currently at max given the physical plant) • Increase fund raising • Increase grant applications (income an unknown) • Ask parent group for more • Increase fees • Lunch • Employee “contribution” for benefits • Uniform replacement costs • Graduation fee • Others?

3. Expense Lever “A”: Benefits • Increase contributions per employee - Currently $240, could be raised • Could change plan to a less expensive one (higher deductible; already at $30 copay) • Contributions for additional family members • Currently OMI pays for all family • Could transition to paying for only employee or employee +1 • Cash in lieu (currently 80% of single health only) for those who do not want benefits

4. Data on Benefits • Current statutory benefits: STRS, OASDI.Cost: $330,025 • Expected increase: none • Current voluntary benefits offered are health, dental, vision and life insurance. Cost: $525,716 • *Expected increase: 10% Health, 5% D/V/L • 55 Eligible employees: 51 take benefits, 4 take cash-in-lieu option. • 29 are self only • 8 are +1 • 14 are +2 or more • 96 members total from 51 employees. • Cost of employee only: 60% of total cost: $307,374 • Raising employee contributions: • Having +2’s pay $100 a month for each dependent would save $27,600 • Having +1’s paying $100 a month for each dependent would save $54,000 • * Difficult to project cost without knowing ages and family sizes for new hires. • Issue: Cutting benefits affects teacher attraction and retention.

5. Expense Lever B: Class Size*for current enrollment of 594. Does not reflect start of year class size.

6. More on class size • Conscious choice has been made re: class size in English and Math (<20) and science/social studies (>30) • There is conflicting research on the impact of class size on learning; definitely not conclusive either way • Teachers feel like class size is a BIG deal

7. Expense Lever C: Cut Personnel • The budget being presented already recommends a cut of 4.33 FTE totaling $358,000 from the initial rough draft budget you received in February. • We can go position by position if the board would like to discuss whether more cuts are desired.

8. Staffing Information • Certificated Staff • 33.13 FTE Teachers – Average salary: $52,568 • 9 FTE Admin/Teachers-Average salary: $70,631 • 71% Personnel Budget • Military Staff • 11 FTE Staff members- Average salary: Unknown • 75% Military Budget • Classified Staff • 16 FTE Support Staff – Average Salary: $47,849 • 29% Personnel Budget

9. Expense Lever D: Outdoor Education • Currently, costs include transportation, food, some contracted services (rappelling instruction, white water river rafting guides, etc), and some facility rental (Camp San Luis, Camp Roberts, etc) • Proposed FY 12-13 cost: $ 50,000.00

10. Expense Lever E: Athletics • Costs include supplies (mostly uniforms) and services (transportation, officials, facility rental, tournament entry fees, etc) • Current year cost: $198,244 • Salaries $94,744 • Supplies $31,500 • Services $72,000 • Proposed cost: $ 221,625 • Salaries $95,125 • Supplies $31,500 • Services $95,000

11. Expense Lever F: Band and Drill Teams • Costs include transportation, food, entry fees • Current year cost: $45,000 • Proposed year cost: $25,000

12. Expense Lever G: Merit System • Merit and Demerit system is central to a military model • Currently merits are “exchanged” for goods and services as the Grizzly Exchange in an amount roughly equal to 10 cents per merit. • Uniform items, school supplies, snacks, etc. • Current year expense: $60,000 budgeted • Propose expense: $60,000

13. Expense Level H: Textbook Issue • Currently budget $55K for textbooks • $12,600 comes from restricted Lottery funds specifically for textbooks and media. • We have a seven year “replacement cycle” in which books are replaced by academic department every seven years • Faculty discussing possibility of moving to e-books

14. Expense Lever I: Library • Should library be mostly hardcover books or mostly “kindle” electronic books? • I am proposing a combination of the two with • about 5000 fiction books for Schoolwide Sustained Silent Reading and • about 2000 non-fiction books aligned with our research across the curriculum program, and then • a set of “kindle-type” e-readers

15. Expense Lever J: Technology • Currently an 80% time highly qualified technology coordinator (with strong tech AND educator background) • Supported by full time tech teacher and “level one” technician to support classroom teacher and office support needs • Students currently learning to support basic tech support needs through computer class • Issue: the more tech you have, the more on-site tech support you need

16. Expense Level K: Professional Development • Current Budget: $31,311.00 • Proposed Budget: $32,000.00 • Includes day long schoolwide PD on topics such as English Learner and African American Learner strategies • Also includes limited individual and small group PD on topics of interest to individual teachers

17. Expense Level L: Opportunity • Currently one teacher at grades 6-8 • About 20 total kids “saved” through the program which helps with ADA • Proposal was to expand to High School also but we are currently cutting that second position to save money (could keep through ADA savings)

18. Expense Lever M: Capital • Could cut “furniture and fixtures” • School really needs a bus and/or additional large capacity vans for student transportation • Computers needed for virtual learning center and tech room as well as for teachers, etc • 600K in e-rate funds approved in early 2012 for basic tech infrastructure to new building

19. Other policy issue: The Bonus • $200K decided as bonus during 2010-2011 school year • Faculty agreed to 50% payout if target of 764 met (missed by two); otherwise, would roll over • $180K remains (20K spent on faculty PD and initiatives during the present FY)