Budgeting For Results Committee - June 08, 2009

[Guest sullinss]

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

June 08, 2009

 

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, June 08, 2009. Chair Malcolm Goodrich called the meeting to order at 5:15 p.m. and led those assembled in the Pledge of Allegiance. Budgeting For Results Committee members present were: Malcolm Goodrich, Paige Darden, Deana Elder, Rod Gottula, Ross Johnson, Bruce McIntyre, Peter Grass, Joan Sleeth, Joel Guthals, and Jane McCracken, Don Stanaway, and Mary Jo Fox. Members Shanna Henry and Kelly Donovan were absent. Also present were CFO Thomas Harper, Budget Analyst Becky Zent, Superintendent Jack Copps, Executive Director of Facility Services Rich Whitney, Executive Director of Elementary Education Kathy Olson, Executive Director of Secondary Education Scott Anderson, Executive Director of Curriculum Gail Surwill, Executive Director of Activities Dave Williams, Executive Director of Special Education David Munson, Executive Director of Human Resources Dan Martin, Trustee Barbara Bryan, Trustee Teresa Stroebe, and Trustee Peter Gesuale.

 

Communication From the Public

 

No one wished to address the Committee at this time.

 

Consent Agenda

 

Don Stanaway moved to recommend Board approval of the Consent Agenda items as follows:

1. Minutes of May 11, 2009

2. Minutes of May 26, 2009 as amended

3. Addition of Library ECA Fund Account at Miles Avenue Elementary

4. Addition of 6th Grade ECA Fund Account at Miles Avenue Elementary

Bruce McIntyre seconded the motion. The motion carried unanimously.

 

Bills Paid – May, 2009 (summary sheet)

 

Peter Grass moved to recommend Board approval of the bills paid for May, 2009. Ross Johnson seconded the motion. The motion carried unanimously.

 

Financial Reports – May, 2009 (unaudited)

 

Committee members reviewed the Financial Reports for May, 2009.

 

Program/Budget Review

 

Committee members previously heard program/budget review presentations from the Elementary and High School Districts. Chair Goodrich stated at the last meeting Administration presented proposed solutions for the General Fund deficits FY2009-10, and Committee members were invited to submit questions regarding the budget. Those questions along with Administration’s answers were handed out at the meeting. Concerns were expressed regarding the budget proposal by Administration to engage new staff in the Elementary District and cut some deferred maintenance.

 

Superintendent Copps presented Core Values developed by the Central Office Leadership Team for K-6, Middle School, and High School as guidelines for examining budget cuts. He said the BFR Committee or the Board may want to address these Core Values and recommend the District move in a different direction.

 

Member Paige Darden arrived at 5:35 p.m.

 

Shortfalls in the General Fund budgets are due primarily to: 1) the lack of sufficient funding from the State; and, 2) increased personnel costs which are 89.6% of the budget. Negotiated salary contracts increase 3.75% next year and 3.6% the following year.

 

Elementary Budget FY10: Proposed Resolutions for the Budget Shortfall of $1,958,641 are:

 

ARRA (American Recovery Reinvestment Act) $ 748,760

Indian Education For All $ 325,055

Deferred Maintenance $ 200,000

Budget Savings/Retirements $ 300,000

Overcrowded Aides $ 129,000

Textbooks $ 100,000

Kindergarten Start-Up Monies $ 69,000

Budget Reconciliation $ 119,000

TOTAL: $1,990,815

Difference: $ 32,174

 

High School Budget FY10: Proposed Resolutions for the Budget Shortfall of $1,542,482 are:

 

ARRA (American Recovery Reinvestment Act) $ 630,392

Medicaid Administrative Claiming Reimbursements $ 35,000

Eliminate 8.2 Positions/attrition $ 475,684

Indian Education for All $ 44,367

Budget Savings/Retirements $ 175,000

Textbooks $ 100,000

Career Center Supply/Equipment Reduction $ 200,000

TOTAL: $1,660,443

Difference: $ 117,961

 

The State took away one-third of our standard annual funding and backfilled it with One-Time-Only money. The State General Fund revenue increase of 3% FY2010 is $1,740,915 Elementary and $270,947 High School. The One-Time-Only money FY2010 revenue is as follows:

 

Elementary High School

State One-Time-Only Funding at 33% $ 647,962 $ 407,838

 

ARRA:

 Title/IDEA Indirects $ 239,357 $ 117,892

 Title $ 509,403 $ 200,000

 IDEA 0 $ 312,500

Total ARRA $ 748,760 $ 630,392

 

Total One-Time-Only Funding $1,396,722 $1,038,230

 

There are 10 additional teachers proposed in the K-6 budget. There was concern regarding using the $200K of Deferred Maintenance money and the $119K of Budget Reconciliation savings; so, to avoid that Superintendent Copps was asked to prepare an option to reduce the number of new hires. He presented an option of increasing some classroom sizes at some K-6 schools; therefore, reducing the hiring from eight to two new K-6 teachers resulting in a possible savings of $360K ($45K X 8 FTE).

 

It was questioned how many teachers we have on special assignment that are not in classrooms. Administration advised we have 1.1 FTE Assessment/Curriculum, 1.167 FTE Music, and 1.0 FTE Tech/TILT that are certified Teachers on Special Assignment (TOSA) which do not require regular direct contact with students.

 

Superintendent Copps said they were able to eliminate 8.2 positions in the High School District through attrition for a savings of $475,684. This was accomplished because of significant losses in high school enrollment; and, this trend is expected to continue for a couple years.

 

FY08-09 there was a one-year memorandum of understanding between the BEA and SD#2 that coaches would reduce their stipends by 20% and Middle School activities would be reduced 20%, thereby being able to offer all sports rather than eliminate programs. The BEA is not willing, at this time, to extend that memorandum of understanding for next year. This funding (est. $150K) is not in next year’s budget; therefore, a decision will need to be made regarding possible program cuts. The potential of fund raising efforts was discussed.

 

Superintendent Copps said K-6 schools are underfunded. The Middle Schools receive a higher amount of State funding per student than K-6. $5M is used from our Middle Schools to subsidize K-6 education. We need an effort that addresses the foundation of public education at the K-6 level, and demand a responsible partnership between the local community and the State of Montana.

 

Some items questioned/discussed by members were:

• Cost per student of extended studies vs. at-risk

• “Give and take” on both sides in negotiations

• No guarantee of future Federal funds

• Keep classes at certain size & bus students over that level

• Any duplication of classes between schools, i.e., shop, etc.

• Learning Center environments

 

Joel Guthals moved that this Committee recommend to the Board, approval of the Administration’s recommendations for the budget changes and with respect to the Elementary District that the changes shall be the elimination of the eight additional teachers which will then result in adjustments to Deferred Maintenance and the Budget Reconciliation. Mary Jo Fox seconded the motion.

 

Other items questioned/discussed by members were:

• Maximize efforts to create savings through energy or other means

• Business partnerships to provide substitutes for savings on our $900K/year substitute costs

• QZAB interest free bonds vs. general obligation bonds payback of 46% by the State

 

Joel urged Committee members to vote in favor of the motion saying although he is not in favor of using one-time money to partially balance the budget, it is necessary to sustain current programs. The Chair called for the question on the vote. The motion carried unanimously.

 

Adjournment

 

There being no further business, the meeting was adjourned at 6:57 p.m.

 

 

 

 

 

Malcolm Goodrich, Chair

 

 

 

 

Sherrill Sullins, Recorder