Transcript GRPS Legislative Brunch Monday, February 21, 2011 Refresher on GRPS • 3rd Largest School District in Michigan – – – – – 18,500+ students 86%+ free/reduced lunch 25% Special education 20%

GRPS Legislative Brunch
Monday, February 21, 2011
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Refresher on GRPS
• 3rd Largest School District in Michigan
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18,500+ students
86%+ free/reduced lunch
25% Special education
20% English language learners
43% African American / 30% Hispanic / 23% Caucasian
• 2nd Largest Employer in Grand Rapids; 10th Largest in
West Michigan
– 3,000+ employees (1,400 teachers)
• $283 Million Annual Expense Budget
GRPS Success Story
Reforms and Rightsizing Redefine GRPS
• GRPS gaining state and national attention as a
“model” for educational improvements and right sizing
reforms
• Significant Academic Gains
– 5 consecutive years of academic improvements (Increased
AYP; MEAP scores)
– Nearly doubled # of Schools Meeting AYP - up from 26 to 49
– Nearly quadrupled # of Schools Earning “B” Grade or Better
– 5 schools earn statewide recognition for “turnaround success”
• Cutting Edge Instructional Reforms
– Since 2007, implementing national renowned “effort based
learning” model
– Driving systemic changes through district
GRPS Success Story
Reforms and Rightsizing Redefine GRPS
• Innovative New School Choices
– Public-private partnerships: Amway, Spectrum, Steelcase,
MSU Med School, GRCC, GVSU, Rockford Construction,
Triangle, Progressive, Michigan Tech, etc.
– “Centers of Innovation”
• Safe Schools Even Safer
– New technology, relationship building, and training
– Reduced number of major incidents for 5 consecutive years
• New State of the Art Learning Environments
– 2004 School Construction Bond
– 11 new state-of-the-art elementary and middle schools
– 8 green built; 5 LEED certified; largest number in Michigan
GRPS Success Story
Reforms and Rightsizing Redefine GRPS
• Sound Fiscal Management
– GRPS CFO voted School Business Official of the Year
– Approved and balanced budget on-time
– Grew fund balance
• GRPS a Leader in Service Consolidation &
Collaboration
– Food Service: GRPS manages food service for East Grand
Rapids, Grand Rapids Christian, and some Grand Rapids
Catholic Schools
– Special Education: In partnership with KISD, GRPS manages
center-based special education programs for all KISD school
districts
– Public Safety Training: Thanks to a federal public safety grant,
GRPS manages public safety and crisis training for area public
and private schools
– City of Grand Rapids/GRPS Partnership Agreement
Challenges: High School Reform
• Not just a GRPS issue; it’s nationwide
• High school achievement and graduation rates
unacceptably low
– District Graduation Rate: 52%
– Comprehensive/Theme Schools: 76% (1% above state average)
– Alternative Schools: 33%
• Students not adequately prepared for post-secondary
challenges of global world
GRPS Budget Overview
By Lisa Freiburger, Deputy Superintendent of Finance and
Operations
Fiscal Responsibility
A History of Hard Decisions
10 Years of “right sizing” reforms, cuts, school closures, and
consolidation
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Nearly $70 million in budget reductions
Closed or consolidated 20+ buildings and programs
Privatized transportation and substitute teaching
Eliminated administrative, teaching and other positions
Purchases postponed (text books, technology, academic
support)
– Special education services restructured
– Negotiated wage and benefit concessions
– Enrollment decline from 25,663 in 2001 to approximately 18,500
today
Fiscal Responsibility
A Decade of Budget Cuts
1999-2000
$6.5 million
2000-2001
$3 million
2001-2002
$8.5 million
2002-2003
$10.3 million
2003-2004
$9 million
2004-2005
$5.6 million
2005-2006
$9 million
2006-2007
$2.8 million
2007-2008
$1.05 million
2008-2009
$1.57 million
2009-2010
$5.66 million
2010-2011
$6.85 million
2011-2012
*$25 million
Financial History: Shrinking Numbers
Fewer students and declining fund balance
Year
Student
Count
Fund Balance
Percent of
Expense
99/00
25,978.04
$ 16,644,052
7.84%
00/01
25,625.05
$ 7,671,044
3.39%
01/02
24,632.54
$ 10,116,849
4.58%
02/03
24,144.33
$ 13,862,014
6.21%
03/04
23,426.35
$ 14,240,060
6.42%
04/05
22,592.24
$ 13,726,765
6.00%
05/06
21,722.00
$ 13,731,679
6.45%
06/07
21,025.64
$ 13,157,329
6.18%
07/08
08/09
19,915.32
19,364.01
$ 12,095,061
$ 9,715,488
5.50%
4.48%
09/10
19,105.84
$ 15,684,477
7.37%
Employee Health and Retirement
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2006
2007
2008
2009
2010 2011- 2012proj proj
Foundation allowance
Employee insurances and retirement
2011-2012 Revenue Projection
Based on Governor’s Budget Proposal
Description
Assumption
Variance
Enrollment
Approx. 400 student loss
($3 million)
Per Pupil Foundation
Additional $300/pupil cut
($5.6 million)
Other State Funding
Loss of Small Class Size (37
teachers K-3rd grade; increase
elementary class sizes)
($3 million)
Other State Funding***
Elimination of Sec. 22b
Discretionary Payment (Special
Education Hold Harmless; Durant
Settlement)
($3.4 million)
Other Funding
Elimination of Categorical Funding
(Bilingual, Declining Enrollment,
and GRAPCEP); Act 18; Other
($1.45 million)
2011-2012 Expense Projection
Based on Governor’s Budget Proposal
Description
Assumption
Variance
Salary Increases
Estimated at 3%; Accounting for step
change
($2.9 million)
Health Insurance
Increase
Estimated at 20%
($2.6 million)
Retirement Rate
Increase
Rate increased to 24.46%; up from
20.66
($2.75 million)
Other Increases
Utilities, transportation, transfers, other
($800,000)
One Time Expenses
Textbooks and Debt Payment
$4.2 million
Loss of ARRA IDEA
(Fed Stimulus
Special education)
Salary and benefit expenses back to
General Fund
($1.9 million)
2011-2012 Projection
Based on Governor’s Budget Proposal
Projected Use of Fund
Balance
Total Revenue Decrease
Total Expense Increase
$(1.8 million)
Projected Operating Loss
$(25 million)
$(16.45 million)
$(6.75 million)
Issues of Concern
GRPS Disproportionately Cut
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$300/pupil cut largest of decade
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Poorest districts with highest needs students and declining enrollment hit
hardest with cuts above and beyond the per pupil reduction
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Elimination of Class Size Reduction
Elimination of Bilingual Categorical
Elimination of Sec. 22 Special Education Hold Harmless***
Elimination of Declining Enrollment Categorical
Raid of School Aid Fund violates intent of Proposal A
– Voters approved dedicated funds for K-12 public education
Michigan Public School Facts
• There are 775 school districts in Michigan (2008-2009)
• GRPS is the 3rd largest school district
GRPS is:
• Bottom 31% in state revenue (ranked 534th)
• Top 12% in total revenue from all sources (ranked 89th)
• Top 36% in average teacher salary (ranked 282nd)
• Top 21% in total spent on instruction (ranked 161st)
Source: MDE – Most recent data available – 2006/2007, published May 2008