Transcript Budget Options 2011-2012

If a nation expects to be ignorant
and free, in a state of
civilization, it expects what
never was and will never be-Thomas Jefferson
This isn’t about someone being right
and someone else being wrong. This
is about what we collectively value for
our children’s education.
BUDGET OPTIONS 2011-2012
 On
the provided note cards, please write
down questions to be answered after the
presentation
 On
the back side, please write down
comments and suggestions that you want
the school board to consider
THE FIRST YEAR: 2009 FUNDING CUTS
Amount of Funding Cuts: $280,000
School District Action
 Local Option Budget (LOB—local property taxes) increase of 4
mills
 A Mill will cost $11.50 per year for a $100,000 house
 Businesses and farms taxed at a higher rate
 Prior to that school year, Rock Creek had the 10th lowest LOB in
the state. It is still 5% lower than the state average.
 No pay raises for any employees
 Frozen hiring for new positions
 Budget cuts (next slide)
THE SECOND YEAR: 2010 FUNDING CUTS
Amount of Funding Cuts: $240,000
School District Action:
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Delay replacing carpet and classroom tech
Delay purchasing vehicles
Reduce summer cleaning help and staff development
Self-funded summer music lessons and national trips
Ended video streaming contract
Eliminated afternoon bus route
Reduced copier contract
Eliminated full-time substitute teacher
Eliminated Career/Tech part-time coordinator
Annual Savings for both years budget cuts: $150,000
No pay raises for any employees
New Facility Funding (next slide)
NEW FACILITY FUNDING 2010-2011
One time additional state funding for students in new SGES
2.
Total new state aid: $525,000
3.
The Catch: LOB must be 25% of General Fund
4.
Local contribution through LOB: $210,000
5.
Rate of return: 250%
6.
Total NFF: $735,000
7. Raised LOB 3.4 mills and lowered bond and interest (bond payments) 2
mills
8. Total increase of 1.4 mills
9.
Bond and Interest will have to go up next year
1.
USES FOR NFF
Total estimated NFF: $735,000.
 Paying off Gym Lease: $90,000
 Make up budget shortfall from last year: $200,000
 Catch up on network and classroom tech (few new items):
$210,000
 Catch up on vehicles (one bus and two vehicles): $125,000
 Sound systems at RCJSHS: $26,000
 Paint WES Gym: $10,000
 Tractor: $32,000
 Miscellaneous equipment and furnishings: $27,000
Total Planned NFF Expenditures: $720,000
FUNDING CUT FOR THIS YEAR (2011)
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Governor’s proposal: Must be passed by legislature
$75 on base cut this year, which is $104,000 for us,
because more state aid needed for more students, more
poor students, bonds, lower property values, etc…
Cuts more difficult during the year because the budget is
set.
We will make up for mid-year cuts with end-of-year cash
balance or contingency reserve
Eliminated RCJSHS Media Center Aide position through
attrition
FUNDING CUT FOR 2011-2012
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We must make up $320,000 (plus any new
costs) in our budget next year (2011-2012).
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This amount does not include increase or
decrease in enrollment (district enrollment was
steady last year).
NEW EXPENSES FOR 2011-2012
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.75 new reading position at RCJSHS to handle larger incoming classes:
$25,000
additional .5 P.E. position filled by shuffling current personnel?
End of federal stimulus for Title I: $25,000 (SGES had choice of Title I
teacher or two aides)
5-6 Teacher at SGES: Transfer WES teacher or aide. Permanently add
the position for the following year.
Health Insurance: A big unknown but estimating 10% increase:
$60,000
General Inflationary costs: $20,000
Considering utility renovation payment and ended lease-purchase
payment for the gym to be a wash.
Teacher Pay: Negotiated
TOTAL BUDGET SHORTFALL FOR 2011-2012: $450,000
OUR CURRENT RESERVES: CONTINGENCY
RESERVE
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Our savings account that can be used for anything
Typically used for late state aid payments, mid-year
funding cuts, or unforeseen expenses
Current Balance: $600,000
Money came from budget cuts and unspent funding
increases caused by enrollment increases (2007-09)
Once it’s used it’s gone
I would recommend spending no more than $150,000
per year for three years.
OUR CURRENT RESERVES: CAPITAL OUTLAY
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Used for buildings and equipment
Can not be used for operating costs (salaries, fuel, food, etc…)
Current Balance: $1.1 million
Used to pay for utility upgrade lease-purchase ($195,000 per
year)
No current mill levy tax to support this
Potential need to spend $600,000 on a pre-planned addition
at SGES
I would recommend not spending Capital Outlay at this time
OUR CURRENT RESERVES: END OF YEAR CASH
BALANCES
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We have money left over each year that is usually
transferred into Capital Outlay or Contingency Reserve
We have to budget higher for some items because of
unknown costs. School districts cannot operate in the red!
Some costs (utilities, fuel, food, etc…) fluctuate a lot.
Last year, we held off on several large expenses and had
about $200,000 left over, which was transferred to
Contingency Reserve
I don’t think we can count on cash balances for budget
purposes
REVENUE OPTIONS: TAX INCREASE
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We can raise our LOB to 30% of General Fund (31% if
an election is held)
State LOB average is 30%
Raising LOB to 30% would require an LOB increase of
about 4.5 mills and would raise about $300,000
(estimated based on this year’s budget and numbers
will change)
Don’t forget: Bond and Interest levy must go up next
year
REVENUE OPTIONS: PRIVATE FUNDING OF
ACTIVITIES
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There are legal limits for charging academic fees
Activities are a very important part of education
Legally, activities are less important than academics
that determine accreditation and college admission
Should we have privately funded activities that poorer
students can’t participate in?
If not, how do we pay for those who can’t afford to
pay?
POTENTIAL BUDGET CUTS
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Nobody wants to cut the budget but we have to
All budget cut options are bad to some degree
We must look at the financial health of the school
district instead of our own personal needs and desires
The following is a preliminary list of potential budget
cuts. In some cases, potential cuts are listed to
provide information.
Names and personalities must be kept out of the
public discussion
I will offer a brief analysis of each potential cut
BUDGET CUTTING OPTIONS
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Eliminate tech purchases and catch up later: $80,000
Eliminate vehicle purchases and catch up later: $70,000
Eliminate additional teacher work days (curriculum writing): $13,000
Eliminate summer school: $17,000
Eliminate after school tutoring: $8,000
Eliminate one northern bus route: $6,000
Eliminate one bus route by not transporting students that live within 2.5
miles of their school: $6,000
Eliminate before-school strength program: $3,500
Eliminate summer strength program: $5,000
Eliminate Parents as Teachers program: $17,500
Eliminate MS Sports: $50,000
BUDGET CUTTING OPTIONS
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Eliminate teacher aides: $15,000 per aide
Reduce Building Budgets at WES and RCJSHS: $10,000
Eliminate one administrator for 2012-13 and have superintendent also serve as
a building principal: $75,000
RIF Teachers: $40,000 per teacher
End Senior Projects: $3,000
Eliminate SGES Intramural Program: $2,300
Start school after Labor Day or End School Early: $12,000
Switch to four day school week: $70,000
Don’t replace RCJSHS Media Center Aide: $22,000
OTHERS?
Total Potential Budget Cuts: $380,000 (rounded, does not include reducing
teachers, aides, or one administrator)
THE IMPACT OF CUTTING ONE K-6 TEACHER
(STUDENTS PER TEACHER ESTIMATE FOR 2011-2012 BASED ON OFFICIAL SEPTEMBER ENROLLMENT
COUNT)
School
WES
SGES
Kindergarten
1-2
3-4
5-6
N/A
36
39
26
27
25
29
34
BUDGET RECAP
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Total Budget Shortfall for Next Year (not counting
negotiations): $450,000
Total LOB Option: $300,000
Total Budget Cut Options: $380,000
Total Contingency Reserve Option Per Year: $150,000
Remember: Using contingency funds and putting off
classroom tech and/or vehicles are temporary fixes.
WHERE DO WE GO FROM HERE?
Comments and suggestions will be compiled
for BOE to read
 BOE may want to categorize budget cuts into 34 phases with lower phases being cuts that are
least negative to students
 BOE will make budget decisions late spring or
early summer
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KEEPING A POSITIVE, ROCK CREEK ATTITUDE
Avoiding Anger and Blame
 Reaching Consensus
 Maintaining Effective Educational and Cocurricular Programs for our Kids
 Balancing Taxes and Budget Cuts
 A Fair Debate and a Fair Compromise Should
Lead to Fair Public Support
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