Budgeting For Results Comm. - September 08, 2008

[Guest sullinss]

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

September 08, 2008

Call to Order

 

The Budgeting For Results Committee of School District No. 2, Yellowstone County and High School District No. 2, Yellowstone County, Montana met at Lincoln Center, 415 North 30th Street, Billings, Montana, on Monday, September 08, 2008. Vice-Chair Joel Guthals called the meeting to order at 5:22 p.m. and led those assembled in the Pledge of Allegiance. Committee members present were: Shanna Henry, Joel Guthals, Mary Jo Fox, Don Stanaway, Malcolm Goodrich, Paige Darden, Kelly Donovan, Peter Grass, Deana Elder, Rod Gottula, and Bruce MacIntyre. Members Joan Sleeth and Jane McCracken were absent. Also present was CFO Thomas Harper, Superintendent Jack Copps, Assoc. Director of the Office of Development & Advancement Carrie Miller, and Executive Director of Facility Services Rich Whitney.

 

Communication From the Public

 

No one wished to address the Committee at this time.

 

Consent Agenda

 

Shanna Henry moved to recommend Board approval of the Consent Agenda item as follows:

1. Minutes of August 11, 2008

Bruce McIntyre seconded the motion. The motion carried unanimously.

 

Chair Malcolm Goodrich joined the meeting at 5:25 p.m. and presided over the rest of the meeting.

 

No Child Left Behind – Results and Implications

 

Superintendent Copps addressed the Committee giving an overview of the No Child Left Behind Act and our District’s performance. Jack said we need to do a thorough analysis of the results of this study in each of our buildings to identify strengths and weaknesses. He labeled the program as a stair step approach that causes some success and also eventually leads to failure.

 

NCLB tests reading and math in grades 3-8, and 10 and was initiated into law at the Federal level in year 2002. These are criterion referenced tests, whereby we are not compared to anyone else but have a level of achievement as a goal. The State and Federal Government work together in determining how standards are set for levels of proficiency. Proficiency targets increase over the years from 55% in year 2003/04 in reading and 40% in math to 100% for both by year 2013/14. If one school in the District fails the level of proficiency in reading, then the entire school fails and the entire District fails. Within this group, each subgroup must be proficient. Subgroups consist of white students, American Indian students, economically disadvantaged, and students with disabilities. The majority of Montana school districts do not have subgroups; because, you must have a minimum of 30 students in that classification to have a subgroup.

 

11 elementary, 3 middle schools, and 3 high schools in our District did not make AYP in 2008. Six of these schools made AYP for “All Students”, but did not make AYP because of subgroup scores.

 

We are trying to achieve growth at each level. Schools should be held accountable. The NCLB Act will probably change considerably in the future; however, it should be noted that NCLB has improved test scores all across the nation.

 

Committee member Paige Darden arrived at 5:40 p.m.; and Don Stanaway arrived at 5:55 p.m.

 

 

 

 

1st Floor Restrooms/Office Renovation-Adult Education-2008

 

Rich Whitney advised a bid was let to upgrade/renovate and make ADA approved the first floor restrooms on the 4th Avenue side of Lincoln Center and do necessary construction and changes to make an office. Rich reviewed the bid tabulation of four contractors that responded to the CMAR project. Cucancic Construction had the lowest bid when combining their margin of overhead markup percent along with their profit fee percent. Facility Services recommends the bid be awarded to Cucancic Construction for $109,281.94 to be paid from Adult Education funds. The project will take approximately 45 days to complete.

 

Peter Grass moved to recommend the Board award the bid for the 1st Floor Restrooms/Office Renovation-Adult Education 2008 project to Cucancic Construction. Joel Guthals seconded the motion. The motion carried unanimously.

 

Proposed Facility Projects 2008-2009

 

Rich Whitney outlined proposed facility projects that need to be considered for funding FY2008-09. He reviewed their priority, project description, and estimated cost. Items include boilers, roofs, a gym floor problem, a master clock, tennis courts and track, and some safety items.

 

General Funds are not available for these projects. Elementary funding for these projects will come from Deferred Maintenance and Building Reserve funds. High School funding for these projects are undetermined at this time. Chair Goodrich advised these projects need to be discussed before they are started in light of their cost and the concurrent closure of Rimrock Elementary.

 

Capital Budget Constraints

 

Thomas stated we do not have an on-going source of revenue for repairs. Major capital projects for repairs or catastrophic occurrences that may not be insured have a limited source of revenue. The alternative for major repairs would be a budget amendment which would lower our limited reserves. Money coming in from a potential bond levy in FY2009 would essentially not be available for two years.

 

A summary of the capital budget funds FY2008-09 is as follows:

Elementary High School Total

 

 Building Fund 3,329,680 243,399 3,573,079

Building Reserves 310,272 382,785 693,057

Technology 252,873 136,257 389,130

Deferred Weatherization & Capital Projects 621,587 34,364 655,951

 

TOTAL 4,514,412 796,805 5,311,217

 

 The Elementary Building Fund has the proceeds from the sale of Crossroads. The Board has

earmarked 2.1 million of these funds for the construction of a new elementary school.

 

The High School Building Fund has the proceeds from the sale of the land at the Career Center.

 

Trustees Financial Summary FY2007-08

 

Thomas reported the Trustees Financial Summary is a statutory report required by OPI that is really a trial balance and a starting point to produce the Comprehensive Annual Financial Report.

 

Rod questioned why we would continue the Daycare program when that enterprise fund has a $43k negative balance. Thomas advised this program has been cut back significantly, and this will be the final year in the District. The program will be transitioned into a United Way project.

 

Rod questioned our $5M increase in revenues from 2007 to 2008. Thomas advised it was from various sources.

 

Chair Goodrich related that these reported numbers are subject to audit.

 

Bills Paid – August, 2008 (summary sheet)

 

The Committee reviewed the bills paid for August, 2008. Joel Guthals moved to recommend Board approval of the bills paid for August, 2008. Mary Jo Fox seconded the motion. The motion carried unanimously.

 

Financial Reports – August, 2008 (Unaudited)

 

The Committee reviewed the unaudited Financial Reports for August, 2008.

 

Risk Management Information

 

Thomas intends to give this Committee a quarterly report on claims as they relate to litigation and safety issues. The mod rate for Workers’ Compensation has increased to .66, and the District paid about $560K this past year. The District’s Safety Committee will be reactivated and will examine Worker’s Compensation claims in detail.

 

Chair Goodrich would like the Safety Committee to report back to this Committee in December regarding Workers’ Compensation.

 

General Comments/Announcements

 

Chair Goodrich informed Committee members that the District implemented a “Budgeting For Results” process which is more of a business based analysis of our budget rather than creating a budget based on an inflationary factor over the previous year’s budget. Designated budget managers will explain their budgets in terms of necessary services and dollars they need for programmatic changes. This would allow a budget a process which would also allow the community to express their concerns and interests. The Board charged this Committee the task of implementing this process in year 2006. We will work on this over the next year or two to implement this budgeting process that was identified to help our District adapt to our budgets that do not keep up with inflation and State funding issues. We will begin having presentations in our October Committee meeting.

 

Joel suggested we start this process with the operational departments (Maintenance, Finance, Human Resources, Technology, etc.). Discussion might center on what services are offered, what services could be provided with 10% more funding and/or what would be lost with 10% less funding, restructuring, outsourcing, etc. This would promote a better understanding of operations for all stakeholders of the District’s objectives, results and indicators, and how we measure them.

 

Adjournment

 

There being no further business, the meeting was adjourned at 7:11 p.m.

 

 

 

 

Malcolm Goodrich, Chair

 

 

 

Sherrill Sullins, Recorder