Transcript Act 60 - Vermont School Boards Association

2008
Passing the School Budget
Presented By:
Vermont School Boards Association
1
Speakers
 Bill Talbott – VT Dept. of Education
 Brent Kay – Orange Southwest SU
 Ken Fredette – Wallingford School Bd.
 John Fike – Reading School Board
 Winton Goodrich - VSBA
2
Key Assumptions
 Connection between per pupil
expenditures and residential tax rates
 No CLA impact when paying taxes
based on income
 Boards not responsible for impact of
increasing property values
3
Cost Drivers






Local and Total Spending
Negotiated Contract
Employee Benefits
Purchased Services
Student/Teacher Ratios
Increased Staffing Levels
4
75% of Budget is Fixed by
the Negotiated Contract
Options for Substantial Cost Reduction:
 Eliminate Programs
 Increase Student/Teacher Ratio
Factors That Influence Taxes
 District could have flat budget
growth but if CLA decreases it
causes tax increase
 Property value growth is slowing
 CLA impact may diminish in future
years
 Less tax base growth may cause
statewide tax rate to increase
6
What’s New for FY09
 First year union and member
districts have separate tax rates
 Each will be exposed to high
spending threshold
 Base year for Act 82
 “Think-Twice,” two-vote provision
7
What’s New…
 Changes to equalized pupils
 Secondary weight reduced to 1.13%
 Shorter ADM – Final count Dec. 15
 Considering fall and spring ADM
census
8
Financial Effort
 % wealth that a state allocates to
education
 $12,337 in 2008 has the same
"purchase power" as $10,000 in
2000.
9
Ed Spending – CPI – GDP
(revised slide)
7.00%
6.00%
Spending Increase
5.00%
4.00%
CPI
3.00%
Ed. Expenditures as a %
of VT GDP
2.00%
1.00%
0.00%
2005
2006
2007
2008
10
School Spending Patterns Change
(2007 VT Annual Personal Income Growth 4.7%)
Annua l Ed uca tion Spe nding P erce nt
Increa se fro m Prio r Ye a r
7.0%
6.60%
6.5%
5.98%
6.0%
5.41%
5.5%
5.0%
4.37%
4.5%
4.0%
F Y2005
F Y2006
F Y2007
F Y2008
11
9-Year Average Annual
Change in Education
Spending Per Pupil
Education Fact Sheet
Demonstrates Equity Between High and Low Spending Districts
0.035
0.032
0.03
0.025
0.024
0.024
0.02
0.015
0.015
0.01
0.005
0
-0.005
-0.007
-0.01
FY1998 Spending Quintile
12
Lowest
2nd
3rd
4th
Highest
Annual Health Insurance Increases
25
20
15
% Increase
10
5
0
2000
2002
2004
2006
2008
Vermont School Boards Insurance Trust
13
Annual Special Education Increases
(K-12 Service Plans)
12
10
8
6
% Increase
4
2
0
2000
2003
2005
2007
Vermont Department of Education
14
15
Northfield School District FY 2005 Budget
Operations & Maintenance
Expense
4%
Long Term Debt Expense
4%
Transportation
Total Staff Benefits
District Expenses
2%
16%
2%
WSSU Assessment
5%
Deficit Reduction
1%
Program Expenses, Supplies
& Materials
12%
Total Staff Salaries
54%
16
17
Vermont Business Roundtable
18
Web Finance Resources
Vermont Business Roundtable
http://www.vtroundtable.org/
Voices for Vermont's Children
http://www.voicesforvermontschildren.
org/main.php/sid/7
19
Education Funding
Bill Talbott
Chief Financial Officer
Vermont Department of Education
Equalized Pupil Weights
Weight
Scale
Scaled
Weight
1.0
0.910
0.91
Sec. (7 – 12)
1.13
0.910
1.028
Elem. Poverty
0.25
0.910
0.228
0.2825
0.910
0.257
.20
0.910
0.182
Elem. (PreK-6)
Sec. Poverty
English Learner
21
Student Enrollment
Trends
Montpelier School Enrollment Projections
Yearly Projection Lines
1100
1050
1000
October Enrollment
950
900
850
Comparison of Actual to Projected
Fall 2005
800
Fall 2003
Fall 2004
Increases in Grades K, 3, 10, 11, 12
Decreases in Grade 4 and 9
750
Fall 2005
700
650
600
2004-05
2005-06
2006-07
2007-08
2008-09
School Years
2009-10
2010-11
2011-12
2011-12
23
Excess Spending Threshold
FY 2008 - $12,594
FY 2009 - $13,200(est.)
(Statewide avg. of $10,860 increased by 25%)
24
25
2008 State Tax Rates
Homestead tax rate = $0.87
(may be reduced to $0.85)
Non-resident & business tax rate
= $1.36 (may be reduced to $1.34)
School budgets do not impact
non-resident and business tax
bills
26
Non-resident Tax Rate
CLA impact same as homestead
tax rate
Fund raising doesn’t help any
more – No financial advantage for
benefactor
27
Non-Resident CLA Impact
$1.36 Non-Resident & Business
(No income sensitivity provisions)
Town A (90% CLA) adjusted tax rate
$1.36/0.90 = $1.51
Town B (80% CLA) adjusted tax rate
$1.36/0.80 = $1.70
28
Eligibility for Income
Adjustment
2007 tax return $90,000 or less
based on entire house site value
Income over $90,000 eligibility
based on first $200,000 of house
site value
29
Income Sensitivity
 Homestead income less than $90,000  Tax credit subtracted from school tax bill
 Based on 2007 income and FY 2008 school
budget
 Homestead income less than $47,000 of
total tax bill
 Combined municipal and adjusted school tax
must not exceed 5% of income
30
Common Level of Appraisal
Common Level of Appraisal
Town grand list divided by the
state equalized grand list
Used to equalize property
values and resulting tax
burdens throughout the state
Statewide average CLA 82.39%
31
Effect of CLA on Tax Rates
If CLA Is
Increase Tax Rate By
95%
90%
85%
5%
11%
18%
80%
25%
75%
70%
33%
43%
65%
54%
32
Under Act 130
Homestead tax collected by town
 Union and member districts each
have own tax rates (don’t avg.
rates)
Districts determine ed. spending
per pupil
 Based on grade range of district
 Prek -12, K-6, 7- 12, 9-12, etc.
33
Under Act 130
 Union districts are recognized
 All districts will determine education
spending per equalized pupil
 All districts will have a homestead tax
rate
 Town’s homestead tax rate – weighted
average of district tax rates
34
Homestead Tax Rate for
Bedrock
Town of Bedrock
60% of eq. pupils are members of
Bedrock Elementary District
40% of eq. pupils are members of
Mudville Union High District
35
Homestead Tax Rate for
Bedrock
Bedrock Elem. tax rate = $1.40
Mudville Union High tax rate =
$1.55
60% of 1.40 =
0.84
40% of 1.55 =
0.62
Bedrock tax rate = 1.46
36
Setting Homestead Tax Rates
Education Spending ÷ district’s
equalized pupil count = average per
pupil spending
Example:
Ed Spending =$2,858,700
Eq. Pupil Count = 300
$2,858,700 ÷ 300 = $9,529
37
Equalized Homestead Tax Rates
Average Ed
Spending per Eq.
Pupil of District
Percentage
of
Household
Income
Equalized
Homestead
Tax Rate
$7,330
1.80%
0.95
FY07 Base
FY07 Base
FY07 Base
$8,063
1.98%
1.05
$8,796
2.16%
1.14
$9,529
2.34%
1.24
$10,262
2.52%
1.33
$10,995
2.70%
1.43
38
Tax Rates on the Tax Bill
Equalized Tax rates are then
divided by the town’s Common
Level of Appraisal
Per pupil spending = $9,529
Equalized rate = $1.24
CLA = 80%
Tax rate on bill = 1.24 ÷ 80% =
$1.55
39
Education Spending for State
Total Adopted Budgets PreK12
Less Expected Revenues
$1,227,094,890
Education Spending
$1,015,048,578
$212,046,312
40
Regional Per Pupil Education Comparisons
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
$10,208
$9,119
$8,890
$9,090
ve
ra
ge
ou
nt
y
ou
nt
y
Cost to Educate a Student
A
ta
te
S
O
ra
ng
e
C
C
W
as
hi
ng
to
n
N
or
th
fie
ld
$6,800
State Grant per Student
41
2005 Data, Vermont Dept. of Education
Tax Rates & Tax Amounts
BRAD
43
Income Sensitivity Web Resources
Town Rebates and Prebates
http://www.state.vt.us/tax/pdf.word.ex
cel/statistics/2004/prebate_town.pdf
Check Link
44
The Final Stage:
Presenting and Passing Your
School District Budget
Brenda Fleming
Business Manager
Rutland Northeast Supervisory Union
Know your Audience
School Board
Committee of Elected Officials
Citizens of a Single Town
Citizens of Multiple Towns –
Union or Independent School
District
Vocational School – Local or
Regional
46
Respect Your Audience
 What are the goals for
students?
 What are the key economic
factors?
 Who are your major employers?
Dotcom's vs. agricultural
industries
Large conglomerates vs. family
run businesses
47
Respect Your Audience
 What are the income levels?
 Compare community, state, and
national incomes.
 What are the community
education levels?
48
Present to your Audience
 Tailor information to fit the public
forum.
PowerPoint, Overheads, Handout
Mailing, Brochures & Flyers
 Small meetings of elected officials
and citizens
 Large meeting of citizens
Remember to Respect your Voters!
49
Budget Approval Process
 Public vote “From the Floor”
Board members present
Citizens and/or voters present
 Public vote by Australian Ballot
Voters must “read” the annual report
and/or budget flyer to be informed
Make sure the written material is clear,
concise & understandable
 Don’t use public funds to advocate;
only to inform!
50
Trust & Positive Communications
 Be Prepared! It’s BEST way to
maintain and/or gain voters’ trust!
 Know the major budget increases
 Answer the tough questions, before they are
asked
Control the presentation
Keep discussion on task and on
schedule
Provide all the necessary information
Keep presentation positive & productive
51
Trust & Positive Communications
Don’t wait for voters to ask tough
questions
Often become antagonistic
Begin fueling mistrust
May result in loss of Board control
52
Major Budget Factors/Hot Topics
 Know answers to hot topics!
Special Education
Connect costs & programs to
students
Show and demand respect for
students & families
Beware of acronyms
 IEP, SLP, EEE, 504
 Maintain confidentiality and inform
voters
53
Major Budget Factors/Hot Topics
 Teacher contracts
What are average teacher salaries
Avoid blaming! Avoid comments
like “we have no control”
Creates anger & mistrust
Avoid negative comments like we
tried ….. but the union said no
54
Major Budget Factors/Hot Topics
 Health Insurance
 Be prepared to answer:
“How much do the Teacher’s pay?
“Why is it so little?”
 Explain cooperative buying programs
(VSBIT)
 Provide other district info
 Compare to professional industries
55
Major Budget Factors/Hot Topics
 Building Operation & Maintenance
 Deferred Maintenance
 Rising Energy Costs
 Bulk Purchase Programs and Regional
Collaborations
 Other Local Topics
 Upcoming Building Projects/Bond
Votes
 Explanation of Deficits
56
What to Answer & How to Answer
 Consider what the voter needs to know
 Who will be served by the Budget
 What will it mean to all Parties:
Students
Teachers
Taxpayers
Why do we need these Services
How much will it Cost
 In Total
 Per student
 Taxpayer
57
Connect the Budget to Students
 Connect budget to students, programs and
school achievements
 Now is NOT the time to be Humble
Communicate high test scores
If recently instituted full-day Kindergarten has
resulted in higher test scores in 3rd grade – tout
it!
Remember your Audience
 Multiple towns
 Use combination of graphics, narrative, PowerPoints
58
Presenting vs. Defending
 Speak with Confidence
 Be:
 Consistent
 Concise
 Clear (If you don’t know an answer,
DON’T make it up!)
 Respectful
59
Presenting vs. Defending
 What to Avoid
 “I” statements – Budget created and
supported by a team
 “We have no control over contract,
SPED..
Statements about our lack of control
fuel anger and mistrust
60
Presenting vs. Defending
 Beware of Inadvertently
Defending the Budget
 Best proposal: balancing educational
needs and taxpayer costs
 Support the budget with facts, figures
& concrete information
 Including the budget assumptions
and expectations
61
Presenting vs. Defending
 DON’T avoid questions.
 Even if you disagree, remember that the
proposed budget was agreed upon by
the majority of board
 Do not to criticize the budget
 Avoid negative statements: “We
can’t..We tried..”
62
Budget Passage
Communication and
Engagement Strategies
Bob Noyed
President
National School Public Relations Association
Effective Communication Strategies





Develop a plan
Create effective media relations
Involve key opinion leaders
Explain reasons for decisions
Create key messages
64
Effective Communication Strategies




Make communication everyone’s job
Share bad news and move on
Step around media and gatekeepers
Share information with school staff
65
What Is a Communication Plan?
 Road map for connecting with
stakeholders
 Identify what needs to be
conveyed
 Create short-term strategies to
address specific issues
66
Types of Communication Processes





No plan
Event or issue based
Crisis based
Regular and ongoing
Strategic and integrated
67
Developing Communication Strategy
 Decide




Where are we now?
How did we get here?
Where do we want to be?
How do we get where we want to
be?
68
Creating an Effective Strategy
Plan with the end in mind
Outline key messages
Identify obstacles
Establish best tactics to reach
goal
 Assess effectiveness




69
Getting Through
Communication Clutter
 Establish strategies that don’t
add to clutter
 Focus on participation rather than
activities
 School not on most “radar
screens”
 Develop key messages
 Use emotional stories not boring
facts
70
Create Key Messages
 Decide top 3 things community
wants to know
 Incorporate key ideas in all
communications
 Frame discussion for stakeholders
 Help them understand
perspective
71
Necessity for Internal
Communication
 Provides foundation for
communication program
 Creates communication culture
 Emphasizes role of staff as
ambassadors
 Encourages staff to deliver
messages
72
Why Foster Internal
Communications
 Research indicates that school
staff – especially custodians,
secretaries, bus drivers, and food
service workers – are the most
believed sources of school
information.
(National School Public Relations Association)
73
Communicating Complex Issues
 Time – Community can’t
understand immediately
 Repetition - Need many
exposures and reminders
 Layering – Break issue down into
smaller pieces and layers
74
Moving from Communication
to Engagement
Communicate

Public Hearing

Talk To

Protect Turf

Top Down

Influence Like
Minded
 Establish Hierarchy

 Authority







Deliberate With
Community Conversat.
Talk With
Find Common Ground
Bottom Up
Understand Different
Views
Build Networks
Responsibility
75
Public Engagement Results






Involved community
Selling proposals are minimized
Build better community relations
Radical voices are minimized
Fewer “squeaky wheel” decisions
Solutions come from community
76
Final Thoughts
 Start early – Begin planning next
year’s budget presentation
tomorrow
 Don’t just share numbers – tell
stories about how spending helps
kids
 Communicate the value, not just
the cost
 Engage citizens in the process
77
Link the budget to
measurable goals as well
as student and school
accomplishments!
What Do Voters Get for
Their Tax Dollars
Show Me the Goods!
Action Plan
 Student performance data
 Target areas needing
improvement
 Professional development
 New curriculum
80
Tracking Student Performance
 Assessment scores
 Graduation rates
 Achievement of students
with special needs
 Higher education/post
secondary enrollment
NSBA Data Connection
81
Tracking Student
Performance
 Salary levels for graduates
 Awards & recognition
received
 Scholarships received
 Participation in AP courses
NSBA Data Connection
82
Other Student Performance
Indicators
 Community service & cocurricular activities
 Graduate & parent
satisfaction surveys
 Attendance/drop out rates
83
School Indicators
Student/teacher ratio
Teacher expertise & awards
% of parents involved
Number of community
volunteers
 Types/# of business
partnerships




84
85
86
87
88
89
90
91
Comparative Web Data
Cost-Effective Comparative Data
http://www.state.vt.us/educ/new/html/data/compar
ison_data.html
State School Report Data
http://crs.uvm.edu/schlrpt/
Comparative School Data
http://www.state.vt.us/educ/new/html/maindata.ht
ml
92
Passing Your School
Budget or Bond Vote
93
Getting Public on Board
6 Months Prior to Vote
 Involve key opinion leaders on
budget committee
 Do not spend public funds
promoting budget passage
 Just communicate facts
94
Getting Public on Board
3 Months Prior To Vote
Prepare budget
Prepare voting process
Organize PR Committee
Communicate with local
opinion leaders
95
Getting Public on Board
2 Months Prior To Vote
Prepare informational materials
Obtain voter registration lists
Dialogue with opinion leaders
Recruit “Get Out The Vote”
volunteers
96
Getting Public on Board
5 Weeks Prior to Vote
Begin community presentations
Meet with media
Assign volunteers in “Get Out
Vote” drive
Prepare yard signs & flyers
97
Getting Public on Board
4 Weeks Prior To Vote
Include “Vote on School
Budget” in business
advertisements
Write & tape radio spots
Design & schedule newspaper
announcements
98
Getting Public on Board
3 Weeks Prior To Vote
Organize key opinion leader
breakfasts
School leaders & volunteers
meet:
Church leaders & PTA
Chamber of Commerce &
Rotary
Select Board & others
99
Getting Public on Board
2 Weeks Prior To Vote
Compile telephone surveys
Direct mailings to clergy
Information posters in stores
100
Getting Public on Board
 2 Weeks Prior to Vote
Target distribution of sample
ballots
Post “Vote on School Budget”
signs
Telephone voters
101
Getting Public on Board
1 Week Prior To Vote
 Newspaper announcements (no
public funds)
 Mail newsletter (just facts)
 Radio & Cable TV interviews
 Post yard & other signs
102
Getting Public on Board
Night Before Vote
“Reminder to Vote” phone calls
Review “Transportation To
Polls” logistics
103
Getting the Right
Message to the
Media
104
7 Media Essentials
 Develop relationships with
reporters
 Know “Rules of Engagement”
“On & off the record”
Background info
 Frame the message
- keep it simple & precise
105
7 Media Essentials
 Understand reporters’ limitations
tight deadlines
 Know your audience
catch interest with your
message
106
7 Media Essentials
 Provide backup print materials
help reporter understand issue
 Always be truthful
107
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