2013-14 Budget Recommendations

January 9, 2013

LOCAL$195.2 Million

92.1%

STATE$11.4 Million

5.4%

FEDERAL$5.7 Million

2.5%

OPERATING REVENUE FORECAST 2012-13$212.3 MILLION

Programs $28.113.1%

Schools $3.01.4%

Salaries & Benefits $183.0

85.5%

Operating Expenditure Budget 2012-2013$214.1 Million

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

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

Revenues, Expenditures & Fund Balance

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.

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

Approved Reductions: 2012-13Projected Actual Annual First-Year

Savings Category Savings Savings District administrators & dept. support staff $1,237,000 $1,287,000Operating budgets $ 750,000 $ 750,000 Greater efficiencies $ 950,000 $ 850,000Personnel supporting teachers and students $1,891,000 $1,891,000Teaching assistants & school secretarial staffing $1,122,000 $1,122,000School instructional staffing $1,934,800 $1,314,800New revenues $ 160,000 $ 160,000TOTAL $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)

Budget Committee Members

Keith Marty SuperintendentDesi Kirchhofer Deputy SuperintendentLisa Merideth Asst. Superintendent, TLAChelsea Watson Asst. Superintendent, Student ServicesMark Stockwell Chief Financial OfficerPaul Tandy Director of CommunicationsJoy Torgerson Director of Human Resources

SUPERINTENDENT’S ACTION TEAM

Budget Committee Members

Susan Barks Food Services SupervisorJan Becker NurseJoWanda Bozeman

Teacher/PNEA

Cindi Hanson Principal’s SecretaryAaron Hickman TeacherShenita Luckett TeacherJimmy Long CustodianCraig Maxwell PrincipalMichelle McGary LibrarianPat McPartland Teacher

Budget Committee Members

Aaron McPherson PrincipalToby McQuerrey Curriculum CoordinatorMike Mertens Director of FacilitiesJeremy Mitchell PrincipalJulie Pepper TeacherLynn Pott PrincipalWill Rosa Director of TransportationBill Senti PrincipalPatrick Shelton PrincipalSteve VanMater Director of Technology

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.

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

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

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

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

Recommendations

• Personnel Supporting Teachers & Schools– Eliminate 3 middle school math facilitator positions

– Total: $150K – $200K

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

Recommendations

• High School Staffing Model– Reduce 3 positions per high school (12 total)

– Total: $650K – $850K

Recommendations

• New Revenues– Increase VST revenue (by maintaining current

enrollment level)– Increase rental fees for building and athletic

field usage

– Total: $100K – $150K

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

Proposed Reductions: 2013-14 Actual Proposed 2012-13 2013-14

Savings Category Savings Savings District administrators & dept. support staff $1,287,000 $1.2M - $1.4MOperating budgets $ 750,000 $ 750K - $850K Greater efficiencies $ 850,000 $ 290K - $390KPersonnel supporting teachers and students $1,891,000 $ 150K - $200KSchool and Program Secretaries $1,122,000 $ 170K - $225KHigh School Staffing Model $1,314,800 $ 650K - $850KNew revenues $ 160,000 $ 100K - $150KTOTAL $7,374,800 $3.3M - $4.1M

Area Budget Meetings

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

Area Date Location

North Area January 14 North High

West Area January 24 West High

South Area January 28 South High

Central Area January 31 Central High

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

QUESTIONS?