Budget Discussions…

TregoED

2014

2

Budget Framework—Three Phases

Phase I—Budget Planning Phase II—Budget Actions Phase III—Budget Implementation

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Phase I – Budget Planning

Deliverables

A. Budget Time Lines

B. District-specific plan for budget work

C. Essential budget data and information

D. Identify Communication and Participation Needs

E. Endorsed budget objectives

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Some Phase I Issues…

Understand current fiscal condition

Develop project timeline that guides budget action work

Introduce and apply Decision Analysis concepts for addressing budget decisions

Introduce and apply communication and budget-related tools for district use

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Budget Process Timeline

What are the major milestones and deliverables we need to achieve in the budget process? Budget resolution to Board Communicate with district administrators Notify personnel of position reductions Complete risk analysis for implementation

of budget actions Adoption of new budget What else?

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Budget Planning Timeline (page 1) BUDGET PLANNING TIMELINE

APPROACH

Milestones, key events and accountability What are the major milestones and deliverables we need to achieve in the budget project? What key steps/events will we need to take to reach these milestones? Key events When Who Governor’s Special Session Extended Budget Team Work Session January 7 Governor’s Preliminary Budget Proposal for 2009-10 January 13 Validation letters to all teachers January 14 Prepare seniority list; move temporary status to probationary January/February District Budget Preliminary Work

Target reduction amount identified Budget action criteria agreed upon Potential budget actions identified

Budget actions evaluated and prioritized January

a) Executive team evaluates district-wide budget action b) Assist Supts to evaluate dept./school level budget actions c) Assist Supts report budget action results to Exec. Team d) Categorical sub-committee evaluates budget actions

Budget process and budget actions reviewed with Board January 20 (Study Session) Validation letters to be returned to Personnel Services January 30 Update Board on budget and personnel reductions February 10 Agreement on resolution particular kinds of service (PKS) February 24 T o be reduced Resolution to Board March 10 Principals’ meeting to distribute letters, include all temporary March 11 teacher letters – 11:00 a.m. Mail certified letters to certificated that did not receive on Mar. 11 March 12 Resolution on classified position reductions to the Board April 7 Distribute letters to classified Prepare Risk Analysis for implementation of budget actions April/May Administrative Law Judge (ALJ) hearing for certificated April/May ALJ report to Board for certificated May 12 Final certificated layoff letters distributed before May 15 May 13 Governor’s May Revise May Adoption of PYLUSD Budget June 23

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Decision Making Excellence

Quality-objectives (criteria)

Quality-evaluation of options

Quality-risk assessment

Quality-involvement

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Budget Reduction Work Session

The Happy Valley School District has an enrollment of 3050 students. The district’s  

List of Possible Budget Actions to Obtain $350,000 in Reductions

enrollment is stagnant and some prodicest a slight decrease over the next few years.          A. Eliminate K-12 Curriculum Supervisor Position $ 92,000 School Enrollment Capacity   B. Cut 3 Teachers (1 pre-k, 1 first, 1-second) $ 172,000     C. Cut 2 M. S.Teachers (Science and Lang Arts) $ 108,000 1. Happy Valley High 1,100 1,300   D. Cut 1 HS Social Studies Teacher $ 54,000 Grades 9-12   E. Cut 1 Newly created Tech Support $ 43,000 2. Happy Valley Middle School 700 900   F. Cut 1 HS Art Teacher $ 54,000 Grades 6-8   G. Cut 1 Unfilled HS Industrial Arts Teacher $ 54,000 3. Madison Elementary 400 600   H. Eliminate MS Basic Skills :Lab $ 54,000 Grade 1-5   I. Cut 2 World Language Teachers from K-4 $ 113,000 4. Lincoln Elementary 630 750   J. Cut General Supplies Budget to 05-06 level $ 62,000 Grades 1-5   K. Move Science instruction in K-4 to Regular Classroom $ 54,000 5. Washington Kindergarten Center 225 300   L. Cut HS Equipment by 25% $ 21,000 Grades K   M. Eliminate All School Psychologists $ 154,000     N. Cut 1 Instructional Aide per school $ 80,000 The District is developing its next year’s budget. The Board has given the administration   O. Cut Operations and Maintenance by 3% $ 15,000 directions to develop a budget no larger than the current budget of $28, 000,000.   P. Cut Athletic Supplies by 25% $ 30,000

The preliminary budget for next year is $28,350,000. You are part of a budget task who has been Q. Cut Field Trips by 10% $ 5,000 charged with recommending cuts totaling $350,000 from the list of possible budget actions. R. Cut K-8 Student Activities by 20% $ 10,000                   S. Close Washington Kindergarten Center $ 125,000

and move kids into Elementary Buildings  T. Eliminate Part Time Nurse Position $ 19,000 U. Eliminate the 8th Grade Football Team $ 45,000      Total $ 1,364,000

(Page 2)

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Decision Analysis

Why: To help us make choices

When: Situations where we need to choose among alternatives

Pitfall: Jumping to Alternatives

Key Steps:State the DecisionEstablish and Classify ObjectivesList AlternativesEvaluate AlternativesConsider RisksTrust Your Work—Pick a Winner!

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State the Decision

Why: To provide focus

How: Ask—“What are we trying to decide?”

Decision Statement = “Choice” word

(select, pick, choose)

Plus: End Result/PurposePlus: 12 Key Modifiers

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State the Decision—Budget

For example:

Choose best actions for closing

$____ budget gap

Happy Valley Simulation:

Choose best actions to close $350,000 budget gap

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Develop Objectivesfor Budget Actions

What objectives might your districts need to take into consideration?

Who should be involved?

Role of the Board?

Board Endorsement?

“We prefer actions that…”

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Establish andClassify Objectives

Why: To identify what we want and need in a final choice

How: To ESTABLISH objectives, ask—“What’s important for us toconsider in choosing an

alternative?”How: To CLASSIFY objectives, identify the

one (es) that is most important and assign a weight of 10. Weigh the others in relation to the 10…range of 10—1.

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Sample Budget Objectives (page 3)

We will favor budget actions (cuts) that…

• Comply with state/federal mandates

• Minimize impact on Board/District Goal #1 (2, 3, etc.)

• Minimize impact on instructional programs

• Minimize impact on extra-curricular programs

• Minimize impact on safety

• Minimize disruption on schools

• Minimize disruption on families

• Minimize impact on district reputation

• Minimize resistance from community

• Minimize impact on the fewest numbers of students

• Minimize impact on classroom teaching and learning

• Minimize impact on student/ teacher ratios

• Minimize impact on upkeep of current facilities

• Minimize impact on district reputation or desirability in attracting teachers and/or families

• Minimize impact on ability to effectively manage programs.

• Minimize the impact on the fewest numbers of students

• Minimize impact on state test results

• Minimize impact on student learning/achievement

• Minimize impact on program effectiveness.

• Minimize the loss of personnel

• Minimize the impact on student health

• Minimize the impact on remaining employees

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1 Establish Objectives (page 4)

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Weight (Classify) the Objectives

Why: To determine the importance/priority of each objective

How:Ask—“Which objective (s) is the most important?”

Give it a “10”

Then ask—

“Compared to these, how important is each other objective?

Assign values of “10”–“1” foreach objective

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2 Classify (weight) the Objectives (page 4 a)

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Board Communication (page 5)

Assure Board that visual, rational approach was used for budget process

Assure Board that accurate and relevant data were gathered and analyzed

Get Board input and support on “tentative objectives”

Get Board support on priority of objectives

Identify next steps in budget process

What else?

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Phase II – Budget Actions

Deliverables

A. Proposed budget actions

B. Prioritize list of budget actions

C. Initial risk analysis

D. Comprehensive communications plan

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List Alternatives

Why: To identify our possible actions for reducing budget gap

How: Ask—“What actions are available to

us?’

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21

Budget Actions

Every budget action has its own cost and benefit profile Dollars & cents

• One-time vs. Ongoing Political Capital

• Within school community (Parents/Students/Staff)• Within community at large (Voters/Businesses/Political interests)

Administrative/management burden• Every district will have a different profile of management capabilities

Facilities impact• Expansion/Closure; Maintenance & Operations

So districts must weigh their budget actions in a wider context than just fiscal

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The LIST… (page 6)A. Eliminate K-12 Curriculum Supervisor Position $92,000

B. Cut 3 Teachers (1 pre-k, 1 first, 1-second) $172,000

C. Cut 2 M. Teachers (Science and Lang Arts) $108,000

D. Cut 1 HS Social Studies Teacher $54,000

E. Cut 1 Newly created Tech Support $43,000

F. Cut 1 HS Art Teacher $54,000

G. Cut 1 Unfilled HS Industrial Arts Teacher $54,000

H. Eliminate MS Basic Skills :Lab $54,000

I. Cut 2 World Language Teachers from K-4 $113,000

J. Cut General Supplies Budget to 05-06 level $62,000

K. Move Science instruction in K-4 to Regular Classroom $54,000

L. Cut HS Equipment by 25% $21,000

M. Eliminate All School Psychologists $154,000

N. Cut 1 Instructional Aide per school $80,000

O. Cut Operations and Maintenance by 3% $15,000

P. Cut Athletic Supplies by 25% $30,000

Q. Cut Field Trips by 10% $5,000

R. Cut K-8 Student Activities by 20% $10,000

S. Close Washington Kindergarten Center $125,000

and move kids into Elementary Buildings

T. Eliminate Part Time Nurse Position $19,000

U. Eliminate the 8th Grade Football Team $45,000

Total $1,364,000

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Evaluate Alternatives—Score Objectives

Why:To see which alternatives best meetweighted objectives

How: 1. Gather and record factual information

and score using only 10, 5, or 1 If an action has a big impact on the objective, score it a 10.

If an action has a moderate impact on the objective, score it a 5.

If an action has a small impact on the objective, score it a 1.

2. Develop Weighted Score (weight x score = weighted score)

3. Total the weighted scores for each budget action.4. Sort from low to high.

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Evaluate Options Against Objectives (page 7)

Obje

cti

ves

Level of

Import

ance

A. E

lim

inate

K-1

2

Curr

iculu

m S

uperv

isor

Posit

ion

B. C

ut

3 T

eachers

-K, 1,

C. C

ut

2 M

. S

.Teachers

(Scie

nce a

nd L

ang A

rts)

D. C

ut

1 H

S S

ocia

l

Stu

die

s T

eacher

E. C

ut

1 N

ew

ly c

reate

d

Tech S

upport

F. C

ut

1 H

S A

rt T

eacher

G. C

ut

1 U

nfi

lled H

S

Industr

ial A

rts T

eacher

H. E

lim

inate

MS

Basic

Skills

:Lab

I. C

ut

2 W

orl

d L

anguage

Teachers

fro

m K

-4

J. C

ut

Genera

l S

upplies

Budget

to 0

5-0

6 level

K. M

ove S

cie

nce

instr

ucti

on in K

-4 t

o

Regula

r C

lassro

om

L. C

ut

HS

Equip

ment

by

25%

M. E

lim

inate

All S

chool

Psycholo

gis

t

N. C

ut

1 I

nstr

ucti

onal

Aid

e p

er

school

O. C

ut

Opera

tions a

nd

Main

tenance b

y 3

%

P. C

ut

Ath

leti

c S

upplies

by 2

5%

Q. C

ut

Fie

ld T

rips b

y

R. C

ut

K-8

Stu

dent

Acti

vit

ies b

y 2

0%

S. C

lose W

ashin

gto

n

Kin

derg

art

en C

ente

r

T. E

lim

inate

Part

Tim

e

Nurs

e P

osit

ion

U. E

lim

inate

the 8

th

Gra

de F

ootb

all T

eam

1 Comply with DPI/Legal Requirements M

2 Minimize Impact on Instructional Program 10

3 Minimize Impact on Safety 10

4 Minimize Impact on Class Size 9

5 Min Impact on Ability to Maintain Effective Management of Programs8

6 Minimize Impact on State Test Results 8

7 Min Impact on Ability to Maintain Facilities 6

8 Minimize Impact on Professional Development 6

9 Minimize Impact on Opportunity for Participation 5

10 Minimize Impact on Instructional Tech Support 4

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Evaluate Options Against Objectives (page 8)

Obje

cti

ves

Level of

Import

ance/w

eig

ht

A. E

lim

inate

K-1

2

Curr

iculu

m S

uperv

isor

Posit

ion

B. C

ut

3 T

eachers

-K,

1, 3

C. C

ut

2 M

. S

.Teachers

(Scie

nce a

nd L

ang

Art

s)

D. C

ut

1 H

S S

ocia

l

Stu

die

s T

eacher

E. C

ut

1 N

ew

ly

cre

ate

d T

ech S

upport

F. C

ut

1 H

S A

rt

Teacher

G. C

ut

1 U

nfi

lled H

S

Industr

ial A

rts

Teacher

H. E

lim

inate

MS

Basic

Skills

:Lab

I. C

ut

2 W

orl

d

Language T

eachers

from

K-4

J. C

ut

Genera

l

Supplies B

udget

to 0

5-

06 level

K. M

ove S

cie

nce

instr

ucti

on in K

-4 t

o

Regula

r C

lassro

om

L. C

ut

HS

Equip

ment

by 2

5%

N. C

ut

1 I

nstr

ucti

onal

Aid

e p

er

school

$92,000 $172,000 $108,000 $54,000 $43,000 $54,000 $54,000 $54,000 $113,000 $62,000 $54,000 $21,000 $80,000

1 Comply with DPI/Legal Requirements M Y Y Y Y Y Y Y Y Y Y Y Y Y

2 Minimize Impact on Instructional Program 10 10 10 10 5 5 5 5 5 5 5 10 1 5

3 Minimize Impact on Safety 10 1 1 1 1 1 1 1 1 1 1 1 1 1

4 Minimize Impact on Class Size 9 1 10 10 10 10 5 10 5 10 1 5 1 5

5 Maintain Effective Management of Programs 8 10 1 1 1 5 1 1 1 1 1 5 1 5

6 Minimize Impact on State Test Results 8 10 10 10 1 5 1 1 10 1 5 10 1 5

7 Maintain Maintenance of Facilities 6 1 1 1 1 1 1 1 1 1 5 1 5 1

8 Minimize Impact on Professional Development 6 10 1 1 1 1 1 1 1 1 5 1 1 5

9 Minimize Impact on Opportunity for Participation5 1 1 1 1 1 5 1 1 1 1 5 1 1

10 Minimize Impact on Instructional Tech Support 4 5 1 1 1 10 1 1 1 1 1 1 1 5

10="big" impact5= 'moderate" impact1= "small" impact

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Develop Weighted Scores (page 8 a)

1 Comply with DPI/Legal Requirements M Y Y Y Y Y Y Y Y Y Y Y Y Y

2 Minimize Impact on Instructional Program 10 100 100 100 50 50 50 50 50 50 50 100 10 50

3 Minimize Impact on Safety 10 10 10 10 10 10 10 10 10 10 10 10 10 10

4 Minimize Impact on Class Size 9 9 90 90 90 90 45 90 45 90 9 45 9 45

5 Maintain Effective Management of Programs 8 80 8 8 8 40 8 8 8 8 8 40 8 40

6 Minimize Impact on State Test Results 8 80 80 80 8 40 8 8 80 8 40 80 8 40

7 Maintain Maintenance of Facilities 6 6 6 6 6 6 6 6 6 6 30 6 30 6

8 Minimize Impact on Professional Development 6 60 6 6 6 6 6 6 6 6 30 6 6 30

9 Minimize Impact on Opportunity for Participation5 5 5 5 5 5 25 5 5 5 5 25 5 5

10 Minimize Impact on Instructional Tech Support 4 20 4 4 4 40 4 4 4 4 4 4 4 20

Weighted Scores 370 309 309 187 287 162 187 214 187 186 316 90 246

Item Cost $92,000 $172,000 $108,000 $54,000 $43,000 $54,000 $54,000 $54,000 $113,000 $62,000 $54,000 $21,000 $80,000

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Sort Weighted Scores-Least Impact to Greatest Impact (page 9)

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Sorted List-Least to Greatest Impact (page 10)

1 Q. Cut Field Trips by 10% $5,000 $5,000

2 L. Cut HS Equipment by 25% $21,000 $26,000

3 S. Close Washington Kindergarten Center $125,000 $151,000

4 U. Eliminate the 8th Grade Football Team $45,000 $196,000

5 R. Cut K-8 Student Activities by 20% $10,000 $206,000

6 P. Cut Athletic Supplies by 25% $30,000 $236,000

7 T. Eliminate Part Time Nurse Position $19,000 $255,000

8 F. Cut 1 HS Art Teacher $54,000 $309,000

9 O. Cut Operations and Maintenance by 3% $15,000 $324,000

10 J . Cut General Supplies Budget to 05-06 level $62,000 $386,000

11 D. Cut 1 HS Social Studies Teacher $54,000 $440,000

12 G. Cut 1 Unfilled HS Industrial Arts Teacher $54,000 $494,000

13 I. Cut 2 World Language Teachers from K-4 $113,000 $607,000

14 H. Eliminate MS Basic Skills :Lab $54,000 $661,000

15 N. Cut 1 Instructional Aide per school $80,000 $741,000

16 E. Cut 1 Newly created Tech Support $43,000 $784,000

17 C. Cut 2 M. S.Teachers (Science and Lang Arts) $108,000 $892,000

18 B. Cut 3 Teachers-K, 1, 3 $172,000 $1,064,000

19 K. Move Science instruction in K-4 to Regular Classroom $54,000 $1,118,000

20 A. Eliminate K-12 Curriculum Supervisor Position $92,000 $1,210,000

21 M. Eliminate All School Psychologist $0

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Consider Risks—Potential Problems (page 11)

Why: To be clear on risks associated

with an alternativeHow:

1. Ask—“If we implement this budget action,

what could go wrong?”

Be specific

2. Develop Action Plans to “protect” budget actions.

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Identify Risks

Identify possible risks with high-impact budget actions

Identify actions to prevent or mitigate risks

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Trust Your Work—Pick A Winner!

Which choices best balance benefits and risks:

Why: To commit to a choice

32

Using DA as Framework to Present Recommendations

Why

To ensure that there is:

An understanding of the background for budget recommendations

A clear picture of what you are recommending

Awareness of the “thinking” that produced the recommendation

33

Making Recommendations Using Decision Analysis Steps (page 12)

How to Make the Presentation:

Review background Who was involved? Review objectives Arrange objectives in priority order Use words like “primary, secondary” Identify alternatives Discuss how key alternatives met objectives Discuss risks and what you will do to

prevent/minimize Make recommendations

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Phase III – Implement Budget Plan

Deliverables

1. Risk analysis of proposed budget actions

2. Budget implementation plan

3. System for monitoring for results

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Decision Analysis Process Sheet (page 13)

Steps modified to budget reduction