Attachment: Slides for Budget Workshop on April 19, 2011 - FINAL.pdf
Attachment: Scenario 2 Fiscal Year 2011-12 Planning Document.pdf
Attachment: 2011-12 Proposed Budget.pdf
Attachment: Proposed Sale of Property.pdf
Dr. Binggeli opened the workshop by welcoming the Board Members and the viewing audience. He stated that this budget workshop is to present the initial recommendations as it relates to the 2011-2012 school year budget.
Dr. Binggeli reviewed the principles and issues (listed in attached document) that guided the district staff as they went through the budget process for the upcoming year as well as keeping the budget for the 2012-2013 year in perspective. He then turned the meeting over to Judy Preston, Associate Superintendent of Financial Services.
Ms. Preston began the presentation as it relates to the Capital Budget. She discussed the following:
1. Property Tax Revenue History
2. Actual Property Tax Proceeds and Lost Revenues
Ms. Kneessy clarified some information as it relates to the debt and the millage. She noted that when the district took on the debt in 2007-2008 the district was well within the boundaries and in statutory compliance. It is since the Legislators have changed the rules and lessened the millage that the district now finds itself out of statutory compliance.
3. Property Tax Roll Percentages Change Scenarios
4. Capital Revenues Based on Ad Valorem Estimates
5. 2011-12 Tax Roll Scenarios
Ms. Preston turned the meeting over to Jo Ann Clark, Director of Accounting Services. Ms. Clark explained the Capital Budget -Carry Forward. The district is recommending the Board use the Fund Balance Carry Forward to off-set some of our debt so that we can use current year revenues to help us with our project costs in the coming school year. Ms. Clark covered the Capital Budget based on Scenario #2 (see attached presentation).
Mr. Ziegler asked for clarification on the RAN and the COP debt and Ms. Henderson requested clarification on the Impact Fees.
Ms. Kneessy requested clarification, for the public knowledge, on what is considered the district's fiscal year is so the community has the correct dates. Ms. Clark stated that the district's fiscal year is from July 1st to June 30th of the following year.
Ms. Clark and Ms. Preston clarified information on the slides for the Board and the listening audience.
Dr. Binggeli explained to the Board that this strategic look forward assumes no PECO money for the next five years. He also stated that if the tax roll recovers quicker than scenario two that will be a gain that will move out exponentially.
Ms. Preston said that she would like the scenario to be #3 or #4 but all indications are pointing towards #2. She then turned the meeting over to Dr. Binggeli to discuss the Operating Budget.
Dr. Binggeli covered the following areas in the 2010-11 Operating Budget.
1. Target for Operating Budget (includes elimination of shared services) $44.2 million
2. Items That Will Help Us ( Jobs Fund Reserve, FRS Reduction, Staffing Plan Savings due to Declining Enrollments, 0.25 Mill Estimate)
3. Reserves and Direct Revenue Reductions
4. Potential Carry Forward
5. Potential Carry Forward Tentative Distribution
6. 2011-12 Operating Budget Recap (showing -1.64 million needing to be cut in the Operating Budget)
Dr. Binggeli noted that with -1.64 million needing to be cut from the budget, he will begin with the Tier I Recommended Reductions (see attached).
Ed Curry, Assistant Superintendent of Facilities, answered questions from Mr. Ziegler and Ms. Kneessy as it relates to the reduction of the Facilities Overtime Budget.
Ms. Kneessy questioned line 17 and line 28 as being list twice. Dr. Binggeli clarified that the Reduction of Educational Technology Budget for AS400 Maintenance is two separate budget cuts for the same amount done at different times. It is for a total of reduction of $120,000 but reduced in $60,000 increments depending on where the line will need to be drawn for the budget reduction.
Dr. Binggeli covered the Prioritized Tier II Recommended Reductions.
Ms. Kneessy asked for clarification regarding the corridor bussing. She also stated that she wanted to go on record as stating that she will never support eliminating any instructional position in ESE which is listed under line 7 and line 13 in the Tier II Recommended Reductions.
Dr. Binggeli stated that the district has more instructional assistants per student in the 2011-12 budget then the district did in the 2007-08 budget from a pure numbers stand point.
Dr. Binggeli reviewed the Tier III Recommendations which are not in prioritized order. He then covered the "Unknowns". These "Unknowns" include Class Size flexibility, Tax Roll, FRS decision, Enrollment, and the 2010-11 Carry Forward.
Dr. Binggeli concluded the presentation by covering when the next steps were as it pertains to the budget. He turned the meeting over to Dr. Murray, School Board Chairman.
Ms. Henderson stated that she was disappointed that closing schools were not looked at and questioned if it will be looked at for the 2012-13 school year. She feels that there is a lot of money to be saved there.
Dr. Binggeli stated that closing schools is being looked at and will be looked at for the coming Fall. He stated that is was looked at for this coming year but as NASA extended the shuttle launches we have not seen the reduction in students as we thought we would see for the school year.
Ms. Kneessy asked about the Board contingencies. Ms. Preston stated that we still are carrying the Board contingencies.
Ms. Kneessy questioned possible cost cuts in the different career academies and are we getting the most for the districts money.
Ms. Kneessy also questioned if we are utilizing the virtual schools program. Cyndi Van Meter, Associate Superintendent of Curriculum and Instruction, stated that there will be a presentation within the next few months regarding the expansion of our Virtual School Programs and other opportunities for our students.
Ms. Kneessy took this opportunity to thank Ms. Preston for all that she has done for the district. Dr. Binggeli stated that there is no employees that are being cut with the current recommendations that are in front of the Board excluding those for declining enrollment.
Dr. Krupp brought up that the employee have not seen an increase in pay for three to four years and requested that a small increase be added to the budget somewhere.
Dr. Binggeli stated that is a bargaining issue. Dr. Krupp stated that he understands it is a bargaining issue but there has to be money set aside for it in the budget so that we can pay our employees what they are worth.
Dr. Krupp also would like to eliminate corridor bussing and have the parents step up and pay for the transportation of their student. Ms. Preston stated that the state will not allow us to charge for corridor bussing. She also stated that the state will not even allow us to forgo the revenue from the state to allow us to charge for corridor bussing.
Mr. Ziegler clarified for the public and employees that the FRS is not a reduction in pay but a reduction in benefits.
Mr. Ziegler questioned Gino Butto, Assistant Superintendent of Information Technology, regarding the Sunshine Standard technology refreshment program.
Ms. Kneessy and Dr. Murray expressed their concerns about Middle Schools and staffing.
Dr. Murray requested the district to revisit the Alternative Sites and look for potential savings. Discussion ensued about a weighted system.