Joint BFR/Board of Trustees Mtg - Dec. 14, 2009

[Guest sullinss]

Joint Proceedings of the Budgeting For Results Committee and the Board of Trustees

School District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

December 14, 2009

Call to Order

 

The Joint Meeting of the Budgeting For Results Committee and the Board of Trustees 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, December 14, 2009. Chair Malcolm Goodrich called the meeting to order at 5:35 p.m. Budgeting For Results Committee members present were: Sandie Mammenga, Rod Gottula, Joan Sleeth, Bruce MacIntyre, Deana Elder, Paige Darden, and Peter Grass. Trustees present were Joel Guthals, Peter Gesuale, Teresa Stroebe, Barbara Bryan, Mary Jo Fox, Joyce Weber, and Malcolm Goodrich. Budgeting For Results Committee members absent were: Don Stanaway, Ross Johnson, and Kelly Donovan. Trustees absent were Kathy Aragon and Dawn Achten. Also in attendance were: Kathy Olson, Nancy Hines, Jack Copps, Dan Martin, Thomas Harper, Scott Anderson, Gail Surwill, Leo Hudetz, David Munson, Karen Palmer, and Rich Whitney.

Registered guests were: Tom Bick, Jim Hartung, Rob Rogers, Sandra Abraham, Pam Dimich, Mark Restad, Amy Griffin, and Nikki Laurenzo of KTVQ.

Communication From the Public

There was no public comment.

Elementary Program/Budget Review

Chair Goodrich stated the Board has expressed its intent to potentially call for a levy in the Elementary General Fund and the Technology Funds for FY2011. Based on estimated General Fund shortfalls, we need to begin an in-depth examination of budget problems. The budget is formally approved in August, and June 1st is the deadline for notification of reduction in force if required. Chair Goodrich asked Budgeting For Results Chair Joel Guthals to guide the meeting.

Mr. Guthals stated the meeting’s focus would be to review potential Elementary General Fund budget changes required to balance the budget. The Budgeting For Results Committee resolved to take a long-term view of the District’s budget and to examine structural changes that would provide current and future benefits. The budget shortfalls are a result of insufficient State funding combined with lack of local voter support.

Thomas Harper was asked to give an update on the budget and Administration was asked to present concepts and recommendations for the BFR Committee and the Board to deal with the budget shortfall. Thomas Harper reviewed our budget challenges as follows:

FY 2011 FY2012

Elementary General Fund (1,896,978) (2,444,187)

ARRA Revenue 1,137,054 0

Net Surplus/Deficit (759,924) (2,444,187)

High School General Fund (1,040,809) (2,970,862)

ARRA Revenue 317,893 0

Net Surplus/Deficit (722,916) (2,970,862)

 

Superintendent Copps explained the projected budget is built on certain assumptions. If these assumptions change, so will our budget deficit. Assumption variables are:

• Utilization of Federal One-Time-Only money

• % Increase in Health Insurance Costs

• February Enrollment Count

• A Successful Mill levy in 2010

At this point in time, we need to proceed with an assumption of a $1.9M Elementary Budget shortfall FY2011.

 

Considerations for cutbacks in the Elementary District with a focus on maintaining classroom integrity was presented by department administrators. The Cluster Schools concept may impact classrooms by increasing some student/teacher ratios. 91% of our Elementary General Fund budget is dedicated to personnel cost.

 

Director of Technology Karen Palmer’s presented the following technology budget items under consideration for long-term cost savings:

• Help Desk – dispatching techs would save mileage and enable quicker response time

• Ink/Toner Refill Program – looking to bid out service for cartridge refills

• Single Platform – all MAC’s or PC’s to save licensing fees, parts and labor

• Google Mail – savings on unlimited e-mail accounts, increased storage

 

CFO Thomas Harper presented the following items under consideration to reduce cost:

• Warehouse – replace company store with outside business supply and daily delivery

• Print Shop – examine overall document strategy and outsourcing (we currently have old equipment)

 

Executive Director of Facilities Rich Whitney presented the following budget cut for consideration:

• Housekeeping Services – reduce K-8 classroom cleaning to every 2-3 days – 12.725 FTE reduction for a projected $284K savings. Retain daily maintenance of heat, fire alarm, security systems, restrooms, nursing areas, lounges, cafeterias, entry, halls, commons areas, and garbage. There is no cost savings for contracting outside services for painting, carpentry, or plumbing.

 

Executive Director of Special Education David Munson stated we provide federally mandated services to 1700 students. Presented for budget cut consideration is:

• Non-Special Education Speech Intervention – 1 FTE reduction for a projected $65K savings

• Centralized Nursing Care – 2 FTE reduction for a projected $50K savings

 

Executive Director of Secondary Education Scott Anderson presented the following budget savings:

• Middle Schools to Junior Highs – 9 FTE reduction for a projected $405K savings – 7-period day becomes a 6-period day which would eliminate the teaming concept, and reduce elective classes.

• Fast Track – 2 FTE reduction for a projected $90K savings – these middle school intervention reading students could be picked up by the Read 180 program

• TOSA-Curriculum Assessment Position - .33 FTE reduced for a projected $17.5K savings

 

Middle School Activities will be discussed at the next meeting - $282K represents every stipend in grades 7 and 8 for athletics, clubs, music, etc. The City of Billings and community organizations have been contacted to see if we provide duplicate activities.

 

Executive Director of Curriculum Gail Surwill proposed the following budget cuts:

• Title II/Coaching Positions – 3 FTE reductions for a projected $135K savings (classroom support for teachers)

• Early Literacy Intervention (ELI) in Non-title schools – 4 FTE reduction for a projected $180K savings

• K-6 Librarians – 1.5 FTE reduction for a projected $67,500 savings – 2 elementaries would see a librarian less days/week, but prep time would still be provided for all teachers

 

Executive Director of Elementary Education Kathy Olson presented the following budget options:

• Instructional ParaPros – 10.32 FTE reduction for a projected $188K savings – they provide assistance in reading and math

• Sister Schools (K-2 & 3-6) – 18 FTE reduction for a projected $810K savings

• Cluster Schools (K-2, 3-4, 5-6) – 20 FTE reduction for a projected $900K savings

 

 

• Bussing Over Capacity Students Out – 15 FTE reduction for a projected $675K savings. You determine the number of students in a school, fill classes to maximum capacity, and bus any child over that number to another school that has room for them.

 

Jack Copps explained the highest number of students allowed in classrooms are 20 in grades K-2, 28 in grades 3-4, and 30 in grades 5-6. If these numbers are exceeded you receive a deviation from the Board of Public Education. Educationally, we do not recommend we go to the maximum in the classrooms. We need to make decisions as to what cuts may be necessary long-term. In year 2001 the Board actually passed a motion to go to cluster schools, but it was never implemented.

 

Teresa Stroebe asked Kathy Olson if she had looked at any studies on the relevance of the educational impact of sister or cluster schools. Kathy Olson replied she had not, but she will research and report back to the group. Joel Guthals asked Kathy Olson for her view of the educational impact of sister or cluster schools. Kathy Olson projects a positive impact from this configuration. There will be a bussing cost because we will have children over the three mile limit and some safety issues. Jack Copps said students have to be three miles or further to be eligible for transportation. We are reimbursed for those that are three miles or further from the schools, plus we are reimbursed for those identified for safety crossings.

 

Kathy Olson was asked the educational impact of eliminating the 10.32 FTE Instructional ParaPros. Kathy Olson replied in some schools that is the only person to give individual help to students; therefore, may have a significant impact in some schools.

 

Gail Surwill was asked the educational impact of eliminating the 1.5 FTE K-6 Librarians. Gail Surwill replied we will still have enough to provide for the curriculum, but it will be difficult for them. Eliminating the 3 FTE Title II/Coaching Positions would cut much of the professional development and classroom support to teachers. Eliminating the 4 FTE ELI positions in non-Title schools would eliminate service to the most needy first graders, which would be about 14-20 kids per non-Title schools.

 

Scott Anderson was asked the educational impact of going from middle schools to junior high schools. Scott Anderson replied the exploratory programs would be gone, leaving the basic education. The teacher-teaming concept would be eliminated. Student achievement would not be significantly impacted, but with the large size of the schools some at-risk students may be lost. There would be fewer elective classes such as art, music, family consumer science, and business tech ed., etc. The concept could be implemented next fall if a decision is made by early spring.

 

David Munson was asked what the impact on safety, health and well being would be if we go to a centralized nursing care. Dave Munson replied the challenge would be a longer bus ride for medically-challenged students. Once they arrive at school, there would be no difference.

 

Kathy Olson was asked how long it would take to implement the sister or cluster school concept. Kathy Olson’s preference would be to implement it over the entire K-6 District in waves over 2-3 years; but, it could be done in one year if necessary. Kathy Olson would want official notice by the end of February or early March to implement. Initial setup costs would be incurred to move hundreds of teachers, classrooms, computer labs and libraries.

 

Thomas Harper explained the budget FY2011 is built on a 3% anticipated increase in State funding which we may or may not get. This will affect our deficit. Malcolm Goodrich asked what the Administration’s position was on using Federal one-time money in FY2011 to mitigate some of the effect of the FY2012 shortfall. Jack Copps replied we need to use the one-time money rather than send it back. We are trying to use the one-time money to fund programs we know could go away. In Special Education, for example, we are using ARRA money to purchase equipment and for personnel. We are aware that money will go away, so we are issuing only one-year contracts to some people. Malcolm Goodrich asked if it is better to prepay FY2012 expenses rather than fund things that go away in one year. Jack Copps said you can use one-time money to accommodate that move to sister or cluster schools. Jack Copps said we can have a discussion on how we use one-time money to mitigate that FY2012 shortfall. We assume the State will backfill part of the one-time money that we’ll lose, but not all of it. We are taking a conservative approach in making assumptions with the budget.

 

It was asked if we could put 6th graders in with grades 7-8. Jack Copps replied Lewis & Clark middle school is the only one that has enough space – the other middle schools are full. Paige Darden asked Kathy Olson why the number of available classrooms counted in the capacity studies last year differed from the documents presented tonight on cluster schools. Kathy Olson said all rooms were counted for cluster schools except libraries and resource rooms. Kathy Olson said we have 16 self-contained special education classes, and 2 student-at-risk classes that are not accounted for in the sister/cluster school model. These assignments will have to be made later. Kathy Olson based student numbers on current enrollment and not on projected numbers.

 

Thomas Harper confirmed the budget was built on the assumption the Legislature would backfill 1.5%-3% of the one-time-only money we will lose. In addition, if we do not receive the projected 3% increase from the Legislature the deficit will be larger than the projected $2.44M in the Elementary District. Bruce MacIntyre urged the Committee to plan long-term since this budget seems to be built on the “best case” scenario and could actually be much worse. Jack Copps agreed there will be a significant shortfall in FY2012; but, there are many unknowns at this time, even regarding availability of Federal ARRA funds. At a minimum our shortfall will be $2.4M in FY2012, and maybe closer to $4M. Thomas was asked what the impact of the 3.6% wage increase was on the Elementary District next year. He replied $2.6M. Thomas said the 12% increase in health insurance costs for the current year is on track at this point.

 

Administration was asked by Peter Gesuale if they considered changing boundaries to coincide with grade level rather than geography. The sister or cluster concept would be an opportune time to make these changes. Jack Copps replied it has not been studied. It was asked if we would incur liability by cutting back on cleaning services if we had a swine flu epidemic. Jack Copps replied we would hire additional people to take care of a situation like that. It was asked if we would still need to build a new elementary school if we adopt the cluster concept; and, are we adequately dealing with space issues or just adding to problems. Jack Copps replied cluster schools will increase available space; however, there would certainly be disruptions for parents if their kids were in separate schools.

 

Joel Guthals asked the Budgeting For Results Committee members to indicate their support on the items presented for Board consideration to address the K-8 General Fund deficit FY2011. The result as follows is based on the support of the majority:

 

 

 

 

 

 

Joel Guthals stated there are not enough changes recommended to balance the budget. He would like further considerations to changes in the middle schools or cluster schools with variations to maximize efficiencies in the schools to save money.

 

Administration was asked if they considered going back to one-half day Kindergarten. Jack Copps said the money we get from the State pays for Kindergarten, plus provides additional revenue since we don’t have the same number of intervention programs and activities expenses associated with the Kindergarten level. If we go back to one-half day Kindergarten, it would be very difficult to go back to full-day Kindergarten in the future without that initial $5M incentive provided by the State. The full-day kindergarten program benefits students who are at-risk, which in turn, promotes less intervention in later years.

 

Bruce MacIntyre moved to reconsider sister schools, cluster schools, and the variations suggested tonight and discuss this again at our next meeting with additional information provided as a package. Peter Grass seconded the motion.

 

Joan Sleeth said we need the cost savings on these items as well. Paige Darden thinks Kathy Aragon from the Planning and Development Committee should be invited and have a voice on these issues. Paige Darden moved to amend the motion to include the Planning and Development Committee. Joel Guthals said we are not going to combine two committees and the Board. The motion to amend failed due to lack of a second. Malcolm Goodrich said this was a Joint Board meeting tonight and as a Trustee, Kathy Aragon was invited. Mary Jo Fox said if BFR members don’t like the offerings tonight they should come up with their own and associated costs to get to the targeted amount. Malcolm Goodrich hopes BFR members can come to a consensus on making difficult decisions they can advance to the Board. He would like their input in addition to the Board members. Malcolm Goodrich asked Administration to come up with more ideas to save money, and focus on FY2012 as well as FY2011. Rod Gottula spoke against the motion because he considers these items as concepts to be explored and recommends we forward them now to the Board rather than bring them back to the next meeting. Barbara Bryan and Peter Gesuale requested that Administration continue to bring forward additional ideas like outsourcing payroll, etc. Jack Copps said if BFR has any additional suggestions for cuts, Administration will explore the associated costs.

 

The motion was called for. The motion carried unanimously.

 

Bruce MacIntyre moved to request Administration study other sources of saving expenses for the District beyond the items studied at tonight’s meeting. Joan Sleeth seconded the motion.

 

Joyce Weber asked if there was a process to get parents and the public involved in making some of those recommendations via letters or e-mails, etc. Joel Guthals replied the public can e-mail the Board, and the website could be set up to solicit and welcome ideas for cutting School District expenses. Jack Copps advised it requires an enormous amount of time to examine and cost out items. He asked that there be a general agreement on suggestions for Administration to consider. Jack commented that 91% of our Elementary budget is in personnel. Our Central Office Administration is 1% of the General Fund budget, and that is the lowest in the State for any AA schools. He said if the BFR/Board wanted to cut people from the Central Office they could, but we are currently staffed with numbers similar to much smaller districts.

 

The motion was called for. The motion carried unanimously.

 

Joel Guthals asked BFR Committee members to e-mail ideas to Thomas Harper that they would like Administration to examine for cost savings. Our next Joint BFR/Board meeting will examine elementary school concepts and additional ideas to save expenditures. We will also look at Activities and start on High School budget considerations.

 

Adjournment

 

There being no further business, the meeting was adjourned at 8:00 p.m.

 

 

 

 

 

Joel Guthals, BFR Committee Chair Malcolm Goodrich, Board Chair

 

 

 

 

Sherrill Sullins, Recorder