Transcript PASBO 57TH ANNUAL CONFERENCE

Case Studies:
Cost Reduction and Revenue
Efficiency (SCOR/RE)
WEBCAST PARTICIPANTS: Listen to audio over your
computer speakers. (If you prefer to listen by phone, you may
dial-in using the numbers provided in your invitation . Phone
lines will be available 10 minutes prior to the event start.)
Pennsylvania Association of School Business Officials
2012 Annual Conference & Exhibits
1
PRESENTERS
SCOR/RE Task Force Members:
Dale R. Kirsch, PRSBA
Business Manager
Indiana Area School District
Lynn Kraus, PRSBA
Director of Management Services
Lincoln Intermediate Unit 12
Robert Schoch, PRSBA
Director of Business Administration
North Penn School District
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INTRODUCTION
Where we were:
 500 Cost Reduction Strategies (2003)
 Updated: approximately 700 (2010-2011)
 Available at www.pasbo.org
Where we are:
 SCOR/RE Task Force (2011-2012)
 Case Studies
Where we want to be:
 Hundreds of Case Studies (2012 to ?)
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SCOR/RE TASK FORCE
Perry Baer
Chris Berdnik Craig Boltz
Michelle
Brown
Paul Fritz
Gerry Gannon Jack Hurd
Mike Hurley
Martha Kew
Dale Kirsch
Lynn Kraus
Matt
Malinowski
William
Sharon Miller Matthew
McGill
Przywara
Greg Sanford Bob Saul
Tom
Schneider
Doreen Secor Tim Shrom
Michele
Zimmerman
Gina
Rembold
Bob Schoch
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CASE STUDIES
Assignment for PASBO research
committees
Review by task force
Index of cast studies to date (handout)
Post to PASBO web site
On-going effort
 Research committees
 Regional chapters
 Personal contacts
 Pleadings
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TEMPLATE
2 to 3 Pages
Headings:
 Type of Strategy
 Where Implemented
 Description
 Savings/Revenue
 Initial Investment Requirements
 Benefits
 Implementation Barriers
 Resources
 Contact Information
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SAMPLE CASE STUDIES
Facilities Benchmarking – Dale Kirsch
Purchasing – Lynn Kraus
Overview of Case Studies- Bob Schoch
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INDIANA AREA SCHOOL DISTRICT
FACILITIES BENCHMARKING
Strategy:
 Expenditure Reduction
 Efficiency Measure
Description:
 PASBO facility benchmarking survey
 Compare data by square feet, region, students
 Power point presentation of the results
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INDIANA AREA SCHOOL DISTRICT
FACILITIES BENCHMARKING
Description: (continued)
Interpreting the Results
 Which measures most appropriate for your LEA
 Understanding relationships between the data
 Improvement strategies
 Energy costs (future case study)
 Custodial staff
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INDIANA AREA SCHOOL DISTRICT
FACILITIES BENCHMARKING
Description: (continued)
Custodial Staffing:
 PASBO custodial staffing calculator
 Hillyard, Inc. CCAP program
Savings/Cost Reduction
 New job classification: part-time housekeeper
 1 custodian position: $50,000 annually
 Upon full implementation: $264,000 annually
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INDIANA AREA SCHOOL DISTRICT
FACILITIES BENCHMARKING
Initial Investment:
 Staff time
 Free software
Benefits:
 Awareness
 Increased efficiency
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INDIANA AREA SCHOOL DISTRICT
FACILITIES BENCHMARKING
Implementation Barriers:
 Staff resistance
 Maintaining quality
 Cost of more efficient equipment
Resources:
 District web site www.iasd.cc/BUDGET.htm
 Job descriptions on PASBO ERC
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INDIANA AREA SCHOOL DISTRICT
FACILITIES BENCHMARKING
Contact Information:
Indiana Area School District
Dale Kirsch, Business Manager
[email protected]
724-463-8713, ext. 108
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LINE ITEM BID
VS
Lehigh
County
Schools
STATE CONTRACT
PRICE
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JOINT
PURCHASING
Lehigh
County
Schools
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JOINT PURCHASING MEMBERS
Lehigh County
School Districts
Lehigh Career &
Technical Institute
Carbon Lehigh
County IU 21
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LINE ITEM BID VS STATE CONTRACT

 2,497 items specified.
 Coordinated by Carbon Lehigh IU #21.
 Art Advisory Committee utilized.
 Committee comprised of reps from the schools
participating.
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ADVISORY COMMITTEE RESPONSIBILITY
Determines
Specifications
Determines
Time Lines
Evaluation of
Product against
specification
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SAVINGS COMPARISON
Market Basket Analysis
 Cost of Items on Line Item Bid: $25,603.
 Cost of Items from Kurtz Bros Co-Stars: $42,751.
 Cost of Items from School Specialty AEPA: $58,963 .
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PERCENT SAVINGS
Saved 67% over Kurtz Co-Stars Price
Saved 130% over School Specialty AEPA
Price
Total Art Bid was $139,293.
 Potential Savings of $93,000 to $181,000.
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IU 12 SAVINGS TOP 25 ITEMS
Market Basket Analysis
Cost of Items on Line Item Bid: $50,647.
Cost from Kurtz Bros Co-Stars: $98,857.
Cost School Specialty Co-Stars: $95,562
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IU 12 PERCENT SAVINGS
Saved 95% over Kurtz Co-Stars Price.
Saved 89% over School Specialty Co-Stars
Price.
Total Art Bid was $248,161.
 Potential Savings of $220,863 to $235,752.
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LINE ITEM VS STATE CONTRACT
Pick
your
poison
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STATE CONTRACT
Higher cost
for
convenience
Ensure Quality
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JOINT PURCHASING LINE ITEM
Products
costs less
Save
analysis
time
Save
advertising
money
Save the
Cost of
going out
to bid
Save
district
office
time
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STATE CONTRACT
DO Purchase
For Convenience
Don’t Purchase
For Savings
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SCOR/RE PURCHASING SUGGESTIONS
Line Item Bids vs State Contract
Card Cost Reduction Strategy
Reverse Auction
Rebates from Vendors for E-Procurement
Mailing Cost Reduction Strategy
Year Book Cost Reduction
Premium Meals and Co-Op Purchasing
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CASE STUDIES: COST
REDUCTION AND
REVENUE EFFICIENCY
Robert Schoch
Director of
Business
Administration
North Penn
School District
March 2012
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TODAY’S PRESENTATION
 Focusing on labor saving in SCORRE case study
submissions to date
 Mailing methods
 Accident and illness prevention
 Electronic processing
 Elimination of positions
 Floor sealer
 Robotic floor cleaner
 PASBO advice on staffing adjustments
 Revenue efficiency Alternative revenue committees
 Maximizing ACCESS/Medicaid revenue
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IMPORTANCE OF LABOR SAVINGS
 Labor costs are the biggest cause of structural deficits
(natural increase in expenditures exceeds natural
increase in revenues)
 Labor costs result from the quantity factor (the number
of staff) multiplied by the unit cost factor (amount
paid). Controlling the quantity factor allows wage
increases higher than Act 1.
 Labor savings can result from labor saving methods,
techniques, and equipment.
 Vacant positions may not need to be refilled if enough
labor savings can be found.
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MAILING COST REDUCTIONS
DOWNINGTOWN ASD
 Contract with service that offers discounted
postal rates and courier service
 Savings in mailing equipment rental
 Savings in labor include:
 Contractor posts mail rather than district secretarial staff
 Elimination of daily run to post office by district courier
 District courier picks up within district 3 days, not daily as
before
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ACCIDENT AND ILLNESS PREVENTION
PITTSBURGH AND CENTENNIAL SDS
 A labor/management joint effort to rewrite
accident and illness prevention policies,
procedures, and training programs
 Savings in lost time and replacement labor
 Savings in workers compensation and healthcare
costs
 Resulted in improved morale
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ELECTRONIC WORKFLOW PROCESSING
CHELTENHAM SD
 Migrate manual processes to existing automated
software processes
 Field trip approval through requisition process
 Tracking of cyber and charter school students through
encumbrances
 No new software
 Minimal training due to known processes
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ELIMINATION OF POSITIONS
GATEWAY SD
 Eliminated department coordinators and team
leader positions
 Replaced with teacher coordinators
 Estimated savings of approximately $120,000
 Gained duty periods and teaching periods
 Teachers’ union has filed a grievance
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USE OF NON-ACRYLIC FLOOR SEALERS
CARLISLE ASD, DERRY TWSP SD,
SOUTHERN YORK SD
 Approximately 25 hours of labor saved per 10,000
square feet after first year when removal of
traditional floor finish is required
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ROBOTIC FLOOR CLEANER
UPPER MERION SD
 Robot accounted for 25% of the labor cost
reduction which was part of $504,000 reduction of
operating budget.
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PASBO STAFFING COMPARISONS
STATE COLLEGE ASD
 PASBO Facility Benchmarking Study and the
Custodial Staffing Formula have been used to
adjust staffing levels in custodial, maintenance,
and supervisory staff
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ALTERNATIVE REVENUE COMMITTEES
CENTENNIAL, CHELTENHAM, POTTSGROVE,
PENNSBURY SDS
 Committee of community members explore all
options including:
 Sponsorships
 Advertising
 Naming rights
 Trademarks
 Merchandising
 Exclusive rights agreements (pouring rights)
 Donation of goods and services
 Potential revenue of $250,000 to $400,000/yr
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Time for Questions!
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Please come to a microphone to ask
your questions.
WEBCAST PARTICIPANTS:
Send text questions using the “Chat”
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Pennsylvania Association of School Business Officials
2012 Annual Conference & Exhibits
39
Thank you for your
participation!
CONFERENCE ATTENDEES:
If you are requesting CPE credit, return the CPE form to
the moderator before leaving the room
WEBCAST PARTICIPANTS:
Attendance Forms are required to receive either PASBO
CEU or CPE credit. Webcast sites are asked to collect
Attendance Forms from each participants and return to
the PASBO office by March 16.
Pennsylvania Association of School Business Officials
2012 Annual Conference & Exhibits
40