District-Wide 2011-2012 Budget Presentation (see pages 129 - 135)

1. District-Wide2011-2012 Budget Presentation(see pages 129 - 135)

2. District-Wide Transportation Employee Benefits Copy Center Liability Insurance Salaries Allowances: Turnover Staffing Allowance Unaffiliated Staff Increases

3. Accomplishments - Transportation • Assisted First Student with the implementation of the new fleet • Assisted with policy development and • implementation of video/audio equip. • Purchased and implemented new fuel pumps with electronic monitoring • Developed specifications for • in-town/in-house Type II buses • for special needs students

4. Focus & Goals for Student Transportation • Implement in-house transportation services for students with special needs that are educated in district: • Procure & register vehicles • Recruit & hire drivers • Coordinate with families • Continue to optimize the utilization of the fleet • Continue to operate the in-house operation for students transported outside of Weston

5. In-town Home to School: Contractual increase & full- Year implementation of fleet 54,942 Pre-payment discount (11,046) Total 43,896 Fiscal Plan - Transportation

6. Fiscal Plan - Transportation Services for students with special needs: First year savings from transitioning in-district services in-house (53,436) Services no longer required for student aging out of program ( 35,460) Total Savings (88,896)

7. Fiscal Plan Recap - Transportation Home to School Fleet 43,896 Special Education (88,897) Diesel Fuel 1,044 Equipment (108,000) Total (151,956) Percent Change (9.15%)

8. Internal Services Fund for Health Benefits What is the Internal Services Fund for Health Benefits? It is a separate fund, outside the general operating fund for the schools, that records and accounts for all of the transactions, which includes various revenue sources, expenditures and accruals for our employees’ health benefits. When was the fund created? The fund was created as of June 30, 2006.

9. Internal Services Fund for Health Benefits (cont.) • What is the purpose of having an Internal Services Fund and why not budget for all the transactions in the general operating budget? • The purpose of the Internal Services Fund is to provide a mechanism for: • full disclosure of revenue and expenditures on one • statement, • retaining fund balances specifically for health • benefits, and • establishing long-term budget stability. • Has the Internal Services Fund enabled Weston to establish long-term budget stability? • Yes, it has been an essential component of our planning.

10. Internal Services Fund for Health Benefits (cont.) • What type of expenditures flow through the fund? • The Board of Education’s general operating budget • is the largest source of funds, followed by • contributions from employees for cost sharing, • COBRA and the State Teacher’s Retirement Board • for retired administrators and teachers covered by • the district’s health plan. • What type of expenditures flow through the fund? • Payments for insurance premiums, claims, the district’s portion of the H.S.A. deductible, medical supplements, consultant fees and a portion of the district’s GASB 43/45 actuarial obligation.

11. Internal Services Fund for Health Benefits (cont.) What happens if revenues are more or less than expenditures in a fiscal period? Since the Internal Services Fund is a separate legal fund, there is a Revenue and Expenditure Statement and Balance Sheet. If revenues are higher than expenditures, the additional funds would increase the undesignated balance of the fund. Conversely, if expenditures exceed revenues, the shortfall in current year revenues would reduce the undesignated fund balance. Therefore, retaining an appropriate fund balance is essential for long-term budget stability.

12. Internal Services Fund for Health Benefits (cont.) Are increases in the costs of providing health insurance to employees predictable to plan for from one year to the next? There are two primary factors in projecting the cost of health benefits for the next year. The first factor is claims experience. If the employees and their dependents incur claims in excess of projection in the 12 months preceding the date the renewal is calculated, the underwriters generally assume that those claims will continue and include them in the renewal. The underwriters increase this projection by a trend factor, which represents the rate of growth in cost of medical services. Therefore, the higher the claims experience the higher the claims renewal.

13. Internal Services Fund for Health Benefits (cont.) • Does the district have any control over claims? To the extent that the district enters into collective bargaining with the unions over the benefit package provided to employees, it has the ability to impact cost. In recent negotiations the Board and unions agreed on the HSA Plan. Here is a recap of the cost savings related to converting employees from the PPO to the HSA Plan as of July 1, 2011: • Goal (# of employees) 50 • Actual (# of employees) 169 • Number above goal 119 • Projected Savings FY 2011 338,497 • Projected Savings FY 2012 491,831

14. Internal Services Fund for Health Benefits (cont.) How has this increase in HSA enrollment impacted the Internal Services Fund balance based on current projections? Projected Fund Balance @ 6/30/11 2,875,491 FY 2011 Additional Cost if no HSA (338,497) Fund Balance @ 6/30/11 if no HSA 2,536,994 FY 2012 Additional Cost if no HSA (491,891) Fund Balance @ 6/30/12 if no HSA 2,045,103 Projected Fund Balance @ 6/30/12 with July 1, 2011 HSA enrollment 3,029,252 Difference 984,149

15. Internal Services Fund (p. 134-134a) FY 2011 Budgeted Fund Balance 2,449,965 FY 2011 Projected Fund Balance2,875,491 Increase in Fund Balance 425,526 FY 2011 (Revenues-Expenses) (60,422) Net Increase in Revenues 75,822 Net Decrease in Expenditures 187,927 FY 2012 – No Claims Run-out 15,100 Less GASB 43/45 (64,666) Additional Balance Available for Increase in Cost of Health Benefits Over FY 2011 Budgeted Fund Balance 579,287

16. Focus & Goals for Employee Benefits • Solicit proposals from health insurance carriers • Continue recruitment efforts from PPO to HSA Plan: Increase enrollment in FY 2012 by 25 employees (projected net savings - 72,756) • Maximize the use of the Internal Services fund balance to accommodate increases in health benefit premiums/ self-funding & GASB 43/45

17. Fiscal Plan – Employee Benefits MERS Pension 94,948 Medicare Matching 20,465 FICA Matching 16,972 Worker’s Compensation 4,669 Sick Bank 1,638 Disability Insurance 236 Unemployment Comp. (24,691) Total 114,238 Percent Change 1.37% Goal: Continue to improve the effectiveness of the district’s safety committee. Contributed to lowering insurance premiums in FY 2011 by $33,220

18. All Other Accounts Copy Center 1,117 Turnover Savings (109,707) Staffing Allowance 61,211 Allowance for Unaffiliated 24,200 Liability Insurance (27,356) Unallocated (80,842) Total (131,377)

19. Staffing • Copy Center • Para-Professionals 1.46 F.T.E • Transportation • Transportation Coordinator .50 F.T.E • Drivers .50 F.T.E • Total 1.00 F.T.E.

20. Questions?