Joint Special Board/Budgeting For Results Committee Mtg. - Jan. 25, 2010

[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

January 25, 2010

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, January 25, 2010. Budgeting For Results Chair Joel Guthals called the meeting to order at 6:10 p.m. Trustees present were: Malcolm Goodrich, Joel Guthals, Barbara Bryan, Teresa Stroebe, Mary Jo Fox, Kathy Aragon, and Peter Gesuale. Trustee Joyce Weber was absent. Budgeting For Results Committee members present were Rod Gottula, Joan Sleeth, Bruce MacIntyre, Peter Grass, Sandie Mammenga, Deana Elder, Paige Darden, and Kelly Donovan. Committee members absent were Ross Johnson and Don Stanaway.

 

Also present were: Dan Martin, Leo Hudetz, Gail Surwill, Kathy Olson, Thomas Harper, Dave Williams, Karen Palmer, Superintendent Jack Copps, Scott Anderson, Rich Whitney, and David Munson.

 

Registered guests were: Barb Buss, Dennis Stellingwerf, Sandy Weiss, Bob Chatriand of MPEA, Mary Lave, LaVonna Robinson, Lisa Scott, Luzelle Russell, and Kevin Nelson.

 

Communication from the Public

 

There was no further communication at this time. Communication was taken at the Special Board Meeting that preceded this meeting.

 

High School 9-12 Programs/Budget Review

 

Joel Guthals stated the next presentation will be on the High School District budget and changes available for the operations and programs of the District, economies those changes may yield and their educational impact. Superintendent Copps presented the following items for consideration regarding the High School budget FY2010-2011:

 

 

Superintendent Copps presented items for consideration to address the High School General Fund deficit. At the next meeting they will elaborate on savings in Technology and the Warehouse and Printing Department. They are prepared to address Supply Chain Management to look at all purchasing, delivery processes, standardization, etc. for efficiencies. Some businesses are willing to partner to assist in this effort. The projected savings in Facilities to cut back housekeeping services is not sustainable. The Vocational Consolidation savings would be moving the Lincoln Center program back to the high schools. The State of Montana is the only state that does not provide services for Special Education students age 19-21. There is a significant cost associated with these students that the State does not fund. Eliminating the Teacher on Special Assignment (TOSA) Curriculum Assessment position would be consistent with the decision to eliminate it in the Elementary District. The Office of Development and Advancement savings is in supplies and not FTE. Executive Director Scott Anderson will address the high school elimination of 8+ instructional FTE.

 

Listed below are the considerations to address the High School General Fund deficit, less one-time funds:

 

Scott Anderson presented information on accreditation standards for program offerings and graduation requirements. Our District requires 21 units for graduation (accreditation requires 20 units). We provide our students with many opportunities for class choices. There are many significant factors to consider when analyzing class loads. Each school is different; facilities create differences as well as students. When administration considered cuts, they looked at optimizing efficiency to minimize impact. The reduction of eight FTE is impacted by waiting for retirements and some resignations. If this does not happen, we’ll have to share bumping FTE and moving teachers with middle schools and elementary schools, etc. Certifications can also be an issue. No programs or opportunities for next year will be eliminated; however, no new Latin classes will be initiated.

 

Superintendent Copps said in the last four years our high school enrollment has declined by 350 students. This equates to $2.1M lost in State funding. If we lose another 100 next year it will be another $600k loss in ANB money. At this particular time the enrollment decline enables us to handle the 8FTE loss without any significant impact on the curriculum in the District. The considerations shown in the chart above address the High School General Fund budget shortfall.

 

Kathy Aragon asked if there has been discussion with employees on investing in wellness. Dan Martin replied there has been; and, at tomorrow night’s Insurance Committee meeting there will be action on Disease Management. This provides the fastest payback on controlling insurance costs. Disease Management is a system to track those diagnosed with illness, but for some reason they are not getting medical care. Kathy Aragon asked if we are considering funds for incentives. Dan Martin replied they were, but they don’t know how to pay for it. We do regular wellness testing for employees.

 

Bruce MacIntyre asked if our Facilities housekeeping policies should be consistent between elementary schools and high schools. Superintendent Copps said we have different options for the high schools than we do the elementary schools. At the high school level we can avoid cutting housekeeping services to every 2-3 days; and, it’s not a sustainable practice. We have to take care of the facilities we have. Superintendent Copps said there are many funding unknowns, and we are going into a Legislative year. Bruce MacIntyre said he attended a legislative hearing and their anticipation is the next biennium they are expecting a $500M shortfall, $200M of which is ARRA funds.

 

Rod Gottula asked for the total number of Teachers On Special Assignment (TOSA) and their salaries. Gail Surwill said the Director of Music is a TOSA.

 

Dan Martin asked to spend more time talking about $170k in retirement severance savings. If we don’t spend the $170k savings it goes into the High School Reserve Fund. Dan Martin said Thomas Harper is suggesting we prepurchase items this year to mitigate cuts next year. We are budgeting $370k again next year in that line item. Salaries are budgeted in a different line item. If we forego the opportunity to use the $170k it goes into reserves. Peter Gesuale asked why we are budgeting next year for teachers salaries that we anticipate will retire this year. Dan Martin said the severance budget is just an estimate. Thomas Harper said he factors in retirement savings into the budget. Peter Gesuale is in favor of using any severance savings this year to prepay expenses to mitigate budget deficits next year.

 

Scott Anderson said enrollment is projected to be down 100 students next year. Superintendent Copps said when you lose 350 students you don’t have the same need for the same number of required sections. Scott Anderson confirmed we can realize these 8 FTE savings without eliminating anything for next year. Peter Gesuale asked what the correlation was between our offerings and dropouts. Scott Anderson said dropouts are part of the deficit; however, declining enrollment and dropouts are two separate things. Scott Anderson said offerings are important; but, we have a lot of other programs in place to work with students on a daily basis who are at risk to prevent dropouts. Superintendent Copps said research is consistent that dropout rates are correlated to the size of high schools. Our 20% dropout rate is unacceptable; however, it is comparable to other high schools our size. Socio-economic factors also influence dropout rates; 98% of dropouts are students that qualify for free/reduced lunches. We also work closely with agencies in the area to help prevent dropouts. One of our more successful programs is the Credit Recovery Program to help get students back on track in the summer to recover credits to graduate. Peter Gesuale said revenue follows savings, and he wants that to be part of the Board’s conversation as far as making decisions that may not help enrollment, i.e., the dropout rate.

 

Peter Gesuale asked about the cuts to the Office of Development. Superintendent Copps said we are taking away the supplies resources, but we are keeping the people and their services. They look at data management, credit recovery, working with legislators in Washington, etc.

 

Joel Guthals asked if there is any negative educational impact as a result of these changes being recommended. Superintendent Copps replied that other than eliminating Latin he does not see any significant impact on curriculum that is offered to students or the student/teacher ratio in classes. Scott Anderson concurs. Joel Guthals asked if there was any negative revenue impact as a result of this from kids not wanting to stay in school. Superintendent Copps doesn’t see anything that would increase the number of dropouts. He said we have increased the number of students in our Career Center programs in the last few years from 300 to 900 for those students that are looking for a two-year program beyond high school as opposed to a four-year program. We are not touching the Career Center programs or those programs for personalized attention. Joel Guthals asked if the reduction in the Office of Development and Advancement has a negative impact on revenue. Superintendent Copps said we have the revenue to continue that program and he does not see any negative impact. Joel Guthals restated the proposal from Administration that this Committee recommends to the School Board the following changes for our High School program for fiscal year 2011: eliminate 1 FTE Vocational Special Education personnel for $20k, elimination of TOSA Curriculum Assessment position .67 FTE for $52,349, elimination of 8FTE high school instructional teachers for $500k, elimination of Contract Service Operations for $25k in the Office of Development and Advancement, along with the use of One-Time-Only money ARRA funds that have already been approved by the School Board.

 

Bruce MacIntyre moved that the Budgeting For Results Committee recommend to the Board the changes for our High School program for fiscal year 2011 as stated by Joel Guthals. Rod Gottula seconded the motion.

 

Paige Darden asked if any jobs were being eliminated or if it would be covered by attrition. Superintendent Copps said we anticipate the FTE savings will all come through attrition. We may need to make adjustments between schools depending on where attrition occurs; but, there will be fewer positions.

 

Rod Gottula asked for confirmation that students returning next year will not notice a change. Superintendent Copps confirmed this.

 

Kathy Aragon asked about offering classes on-line. Scott Anderson said electronic opportunities are in place for Credit Recovery, etc. The Chinese class is the only on-line classes with teachers. Superintendent Copps said there is a next step on the way with the University of MT to approve a virtual school system in the State of MT where there will be multiple offerings through the University system.

 

The motion was called for from Budgeting For Committee members, only, to make a recommendation to the School Board. The motion carried unanimously.

 

Adjournment

 

There being no further business, the meeting was adjourned at 7:30 p.m.

 

 

 

 

 

Joel Guthals, BFR Committee Chair Malcolm Goodrich, Board Chair

 

 

 

 

Sherrill Sullins, Recorder