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Special Board Meeting August 15, 2011


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Proceedings of the Board of Trustees

District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

August 15, 2011

 

CALL TO ORDER

 

The Special Meeting of the Board of Trustees of School District No. 2, Yellowstone County, Montana, and High School District, Yellowstone County, Montana, was duly held at The Lincoln Center, 415 North 30th Street, Billings, Montana, August 15, 2011 at 5:30 p.m.

 

Members present included Trustees Connie Wardell, Greta Besch Moen, Lindy Graves, Barbara Bryan, Travis Kemp, Kathy Aragon, Teresa Stroebe, Travis Smith, Pam Ellis, District Clerk Leo Hudetz, Associate Superintendent Josh Middleton, and Superintendent Keith Beeman.

 

Registered guests were Rita Wells, John Eisen, Decora Jorgensen, Carole Jones, Karen Moses, Sean Mackenzie, Jeff Weldon, Barb Fettig, Pam Christianson, Chantelle Forseth, Robyn Driscoll, Linda Horst, Lisa Bazant, John Deeney, Lisa Lopez, and Conrad Stroebe.

 

COMMUNICATION FROM THE PUBLIC

 

The Board recognizes the value of public comment on educational issues and the importance of listening to members of the public in its meetings. The Board also recognizes the statutory and constitutional right of the public to participate in governmental operations. The Board encourages members of the public to participate in and express opinions about issues important to the District. This part of the Board's meeting is dedicated to public comment on any public matter that is not on the agenda of this meeting and is within the jurisdiction of the Board of Trustees. Members of the public may also address particular items on this agenda either now or at the time the Board considers the particular item.

 

Jeff Greenfield, Billings Teachers Association (BEA) President, gave the board his fiews regarding the budget and bargaining. Neither party opened the negotiations by January 1, 2011. The contract expired June 30, 2011 but was extended by the teachers' association to June 30, 2012. Steps and lanes are not open for discussion. In Mr. Greenfield's view, the district will have to show cause in order to open negotiations and start the bargaining process. Mr. Greenfield reported the BEA will take action if steps and lanes are included in the budget cuts.

 

Mary Jo Fox addressed the board on following open communication laws, the budget, and the super committee proposal. She felt it was an 'in your face' move to take away steps and lanes. Ms. Fox urged the board to vote against the proposed budget. All emails to the board members should be placed on the district's website. In regards to a committee that Ms. Fox referred to as "the super committee", all trustees were elected by their constituents and a super committee should not give certain members additional powers and it is the board's duty to conduct itself in public.

 

BUDGET HEARING AND ADOPTION

 

Chair Bryan reported, if the budget does not conclude tonight, it must be approved by August 25, 2011. Trustee Moen made the following motion with a second by Trustee Wardell:

 

Motion to adopt the projected Elementary District budgeted funds for year 2011-12 as presented and to adopt the projected High School District budgeted funds for year 2011-12 as presented.

 

Dr. Beeman reported the contingency line balance for K-8 has been reduced from previous budget versions and aligned to actual numbers in order to have a balanced budget. Due to updated information, the proposed high school district budget has a reduced impact on the 5% reserve for unanticipated unfunded liabilities and a reduced impact on one-time only dollars. The K-12 budget has an increased estimate of one-time only dollars. The elementary contingency line item is projected at $360,000 and the high school fund is at $41,000 which includes an increase due to a lower severance package amount. There is still dollars available in the one-time only dollars.

 

Dr. Josh Middleton urged the board to keep in mind this is one of many steps in what to adopt in a final budget. The FY2012 budget will continue to be reviewed. Dr. Middleton urged the board to focus on the revenue side of the budget tonight. He asked for board approval of the Fy2012 budget tonight. The proposed budgets for 2011-2012 estimations are as follows:

 

Elementary High School

General Fund $65,108,508 $36,422,893

Transportation Fund 3,740,256 2,083,691

Tuition Fund 200,000 300,000

Retirement Fund 9,100,000 5,300,000

Adult Education Fund 578,430 1,600,000

Technology Fund 184,136 1,182,148

Flexibility Fund 531,064 240,247

Debt Service Fund 626,606 883,070

Building Reserve Fund 306,526 283,738

TOTAL $80,375,526 $48,295,787

 

Pam Christianson addressed the board to ask the board to not adopt the budget tonight as she had concerns that the public may not have received all of the information. She asked if the public receives the same packet the board receives.

 

Deana Elder, Billings Classified Employees Association (BCEA) president, reported three paraprofessionals have had their hours cut which did not meet the timeframe requirements of the bargaining agreement.timeframe for negotiations. Cutting their hours means instruction time for students will be greatly reduced and students will be affected. Six months ago, the unions received information on a request to open negotiations and no dates were received from the Human Resources Department or the superintendent. Ms. Elder felt this manner of developing a contract without collaborative bargaining was unlawful.

 

Karen Moses did not believe the public wanted the building reserve funds to be used on a study for the buildings of the district. She felt the superintendent's reorganization in administration was not right when other areas are being cut. A lot of the cuts will directly affect the classrooms. Ms. Moses felt contracts with unions must be in compliance with Montana state law. She urged the board to put priorities in the classroom where they belong.

 

Trustee Ellis stated the public is not receiving the same information as the board members. Trustee Smith asked for further information on technology salaries. Administration answered that Title I funds are used for those salaries but does not cover any transportation costs. However, transportation funds may be used for any student who has an IEP (individualized educational program). Trustee Ellis asked why Title I funds are being cut and why is administration cutting Title I teachers and paraprofessionals in the classroom to pay administrators.

 

Dr. Beeman reported Title I dollars will increase a small amount but some dollars have been cut. Title I dollars spent on administration have been cut .6 FTE.

 

Dr. Middleton reported there are no Title I dollars being spent for administration at the Lincoln Center but just at Senior High.

 

Trustee Ellis asked if steps and lanes would be included in the September checks for teachers. Jeff Weldon, legal counsel, reported steps and lane decisions should be made as negotiations go on. Mr. Weldon said Forsyth School District was told it was an unfair labor practice in 1984 not to pay steps and lanes when contract negotiations had not been completed by the termination of the current contract. The District's position is that the contract was extended on June 30 and as he believed, the District gave notice to the union to open contract negotiations. Trustee Ellis felt there was not a written notice which is the legal manner of notification. Mr. Weldon reported steps and lanes will not be included in the September teacher paychecks. Trustee Stroebe stated that adopting the budget means approving the revenues allowed by law but reason our district is facing insufficient funds is the fault of the state legislators. If the 2011 legislature would have included funding for basic entitlement for each of our district school buildings, it would pay for steps and lanes. Trustee Stroebe further stated she could not vote for this unless she knew the district can make changes to the contractual bargaining unit agreements. Trustee Wardell reported the board agreed last October that it wanted to adopt the budget prior to transitioning into negotiations with the unions. Trustee Kemp asked if a motion could be made to reconsider the motion of July 18, 2011 regarding steps and lanes. Clerk Hudetz stated a motion did not have to be made to reconsider the vote but the board can address that issue tonight in the budget discussion.

 

Trustee Moen asked if this precludes any negotiation on steps and lanes as the budget is approved. Dr. Middleton report no, the budget must be approved prior to August 25. The amount is the same and is for state reporting as to the impact on the taxpayer. Trustee Graves stated that lack of negotiations are why he could not support this budget and felt it was irresponsible on the board's part. He believes the superintendent should complete negotiations and did not want a court action in the future for money the district does not have. Trustee Graves stated he wanted more information on Title I funds. Addition information was received on Saturday but it did not go to the public. He felt answers were needed to Trustee Ellis' questions in order to keep an open dialogue. He expressed his sorrow that he voted to get rid of the Budgeting for Results Committee.

 

Trustee Stroebe stated voting to adopt this budget will not solve our problems and we should be able to go through normal negotiations. She did not want to have this budget be part of the principles of the negotiations. Trustee Ellis stated Chair Bryan's lawsuit against the district addressed the lack of giving out information that was not made available to the public. She felt that information should be given to the public before the budget is adopted and she believed not doing so was illegal. Trustee Wardell asked what the ramifications would be if the budget was not adopted by August 25th. Dr. Middleton reported it affects the calculation taxpayer property tax levies but no penalty is assessed. Mr. Weldon urged the board to disseminate any information that was not given out to the public. He recommended the board continue the discussion on the cyber information system. Chair Bryan believed it was not a good idea to enter negotiations before approving the budget. The board's responsibility is to the students and taxpayers. She further felt, if steps and lanes were added to the budget, it would be an additional $1,000,000. Trustee Moen asked if it was legal to vote on the budget tonight. Mr. Weldon suggested suspending the discussion until Trustee Ellis' request could be met and postpone the meeting. It was the consensus of the board to postpone the meeting until Monday, August 22, 2011, at 5:00 p.m.

 

As there was no further business, the meeting recessed at 7:50 p.m.

 

The meeting reconvened at 6:10 p.m. on Monday, August 22, 2011.

 

Members present included Trustees Travis Smith, Greta Besch Moen, Lindy Graves, Connie Wardell, Teresa Stroebe, Travis Kemp, Pam Ellis, Barbara Bryan, Assistant Superintendent Josh Middleton, Superintendent Keith Beeman, and District Clerk Leo Hudetz. Trustee Aragon was excused.

 

Registered guests included Jeff Weldon, Conrad Stroebe, Ann Miller, Randy Hofer, Janna Hofer, Lisa Bazant, Noreen Burris, Karen Moses, Becky Pond, Ellie Creek, Rita Wells, Sheila Hanson, Juline Kosmiecki, Linda Baker, Brett Hoyt, Julie Hipper, Melissa Tschetter, Karen Kreble, Connie Jensen, Judy Smith, Juliet Bettes, Cal Eggum, Jan Kransky, Valeri McMurtry, Barb Fettig, Patti Vierthaler, JoDell Beeler, Peter Gesuale, Sara Hill, Jeff Kinman, Lana McClusky, Kathy Welkinson, Kathie Hoyt, Sandra Graham, Audrey O'Brien, Cathy Pomeroy, Bonnie Sproue, Joan Sleeth, Rita Ferris, Dan Ferris, Bill Bauman, Nancy Boyer, Wanda Mayhall, Janis Hryes-Strum, and Wade Spartz.

 

COMMUNICATION FROM THE PUBLIC

 

The Board recognizes the value of public comment on educational issues and the importance of listening to members of the public in its meetings. The Board also recognizes the statutory and constitutional right of the public to participate in governmental operations. The Board encourages members of the public to participate in and express opinions about issues important to the District. This part of the Board's meeting is dedicated to public comment on any public matter that is not on the agenda of this meeting and is within the jurisdiction of the Board of Trustees. Members of the public may also address particular items on this agenda either now or at the time the Board considers the particular item.

 

Julie Hippler, a teacher in the district, asked the board to consider more than a few years when looking at the budget. She voiced her concern that the students are taught by highly qualified teachers and asked that those teachers are compensated for their further education and experience. Not doing so, will negatively affect the district for years to come.

 

Becky Bird addressed the board regarding class sizes. She felt it was unacceptable as a parent to have a third grader in a class ranging from 27-31. Ms. Bird asked the board to respect the teachers as they are part of the infrastructure of this district. Anything taken out of the classroom in the budget, dampens the spirit of the students and teachers.

 

Patty Vierthaler, special education teacher, reported she took classes at MSU-Billings in order to achieve her reaching certification as needed to change classrooms at Skyview High School. As a result, she has moved over two lanes on the matrix when she was promised a move of four lanes. Ms. Vierthaler stated she met the district's requirement and it will take until she retires to pay off the debt.

 

Barb Fettig, a teacher at Skyview, reported she has invested her time and money to improve her skills for the classroom. Classes in professional development have also helped her. She asked the board to honor the teachers' contract and retain steps and lanes.

 

Conrad Stroebe reviewed a handout given to the board. He urged the board to address the constitutionality of funding education at 80% by the state. Mr. Stroebe encouraged board members to read the book "The Road to Trust". In class C schools, $21,000 is spent on every student whereas our district spends approximately $8,000-$9,000 per student. If basic entitlement were funded for every school, not district, you would generate significant increase in revenues in the high schools and the elementary schools. Mr. Stroebe further stated that graduation rates in small schools are 87% where the larger schools only have 79%.

 

Lisa Bazant addressed freshmen academies which will crowd West High School by moving them back to the schools as West High will now have an additional 480 students. A number of programs have also been cut such as advanced courses and lower level courses which, she felt, teaches mediocrity. She wanted value for her children. With 29 students in the 6th grade classes at Meadowlark, teachers cannot teach effectively but only manage behaviors. Ms. Bazant believed that every decision made by the board affects a student.

 

Kevin Nelson urged the board to address the issue of Tax Increment Districts as he believed there is money in those districts for the schools.

 

Jeff Greenfield, Billings Education Association president, asked that the board have a good, complete discussion on the various issues. He urged the board to bring those issues to resolution in order to move forward.

 

BUDGET HEARING AND FINAL ADOPTION

 

Chair Bryan stated the board needs to approve spending for the district which would allow the taxing authority to tax property owners appropriately. She asked if the board would put the other two motions made on August 15th aside and make a substitute motion. Trustee Wardell made the following substitute motion with a second by Trusted Moen:

 

Motion to adopt the Elementary District Final Budget which reflects the revenue and tax impact, and, motion to

Adopt the High School District Final budget which reflects the revenue and tax impact.

 

Voting in favor of allowing the substitute motion were Greta Besch Moen, Barbara Bryan, Pam Ellis, Lindy Graves, Travis Kemp, Travis Smith, Teresa Stroebe, and Connie Wardell. The motion passed unanimously.

 

Dr. Middleton reported schools are adopting the revenue side of the budget which reflects revenue and the tax impact. The spending authority for fiscal year 2012 is time sensitive. No new levy is being created. The board has been working on the expenditure side of the agenda and it will be discussed in the negotiations strategy part of this meeting. Trustee Stroebe believed that the reason there is not enough money in this budget is due to the actions of the legislators. AA districts asked the legislators for basic entitlement for each school but did not receive it. If this is accepted, this board is accepting the hand that it was dealt.

 

Trustee Aragon joined the meeting via telephone. Those voting in favor of the substitute elementary motion were Kathy Aragon, Greta Besch Moen, Barbara Bryan, Pam Ellis, Lindy Graves, Travis Kemp, and Connie Wardell. The motion passed unanimously. Trustees Smith and Stroebe are ineligible to vote on elementary issues. Those voting in favor of the substitute high school motion were Kathy Aragon, Greta Besch Moen, Barbara Bryan, Pam Ellis, Lindy Graves, Travis Kemp, Travis Smith, and Connie Wardell. The motion passed unanimously.

 

NEGOTIATION STRATEGY

 

Karen Moses felt the board is starting to hear the issues as a whole. She stated negotiations are public and when a question is asked, get a direct answer from the administrators tonight. Ms. Moses felt the committee structure had been severed and staff is afraid to talk to the board members.

 

Randy Hafer reported the constituents are employees, students, taxpayers, and facilities were also very important. The legislators did not treat the school district well and he urged the board to find a balance to address the constituents and facilities. Mr. Hafer asked the board to balance the needs of all of the components of the district.

 

Chair Bryan urged the members to ask all of the questions that they might have and state your position on the various issues. Trustee Graves voiced his concern that information was not given in a timely manner. Chair Bryan stated she worked on the information given out through the weekend. Dr. Middleton reviewed the schedule on page 58 of the agenda packet. The teacher pay scale matrix is based on experience and education. The BEA does not participate in longevity raises but the two other unions do.

 

Jeff Weldon, legal counsel, stated there are three groups that participate in collective bargaining. The stance the district has taken in opening the contracts for negotiations were to take the position to open the contracts for negotiations in January. Mr. Weldon believed the district gave notice through budget talks in the fall. The effect is that steps and lanes are open for negotiation. In the Forsyth case of 1984, the Supreme Court ruled that school districts should carry forward any benefits. After that decision, district contracts started to include language to address that ruling known as the "anti-Forsyth clause". The BEA contract did expire on June 30, 2011. Steps and lanes will not be continued due to the anti-Forsyth language. In effect, the district believes the contract is open for negotiations and the union believes it is not.

 

Trustee Wardell made the following motion with a second by Trustee Ellis:

 

Motion, as a board, to not pursue to open the entire contract as listed on page 53 of board packet, Section I of Article XIX.

 

Chair Bryan stated she supports the motion and feels adequate notice was given to the union. Those voting in favor were Greta Besch Moen, Barbara Bryan, Pam Ellis, Lindy Graves, Travis Kemp, Travis Smith, and Teresa Stroebe. The motion passed unanimously.

 

Trustee Graves asked how notice was given in the past. Mr. Weldon answered the union sent written notice to the district of its intent. Chair Bryan asked the board if it wanted to pursue the issue of notice being given or does it want to pursue that portion of the contract.

 

Trustee Wardell made the following motion with a second by Trustee Ellis:

 

Motion to instruct the superintendent to negotiate Article VII, Section 1, Subdivision 2 with the BEA.

 

Those voting in favor were Greta Besch Moen, Barbara Bryan, Pam Ellis, Lindy Graves, Travis Kemp, Travis Smith, Teresa Stroebe, and Connie Wardell. The motion passed unanimously.

 

Dr. Beeman stated that the effect of the prior motion and approval means the district will prepare in September for steps and lanes to be paid for for qualified employees. Steps and lanes would not be negotiated but the value of each cell on the pay scalel matrix would be discussed.

 

Trustee Ellis asked for the affect on budgeted unfunded liabilities. Dr. Beeman stated it will be reviewed and budgeted accordingly. All of the FTE authorized by the board in a previous meeting are being hired. Also, all of the FTE authorized for fiscal year 2012 will be carried over into fiscal year 2013 budget projections.

 

Trustee Stroebe asked if a full-time grant writer would be included in the budget. Dr. Beeman reported it was a hope but the board should not depend on it. Trustee Wardell stated, if steps and lanes are funded, there is no money to fall back on. She felt gambling on and increase of retroactive dollars from the legislators is too big to chance. Taxpayers do not like to pass a mill levy when dollars go to pay salary increases from the year before. She reported the basic entitlement for 2012 will be less than 2011. Trustee Wardell recommended giving a 1.5% increase as a one-time bonus for 2012 and no steps and lanes. She felt the lesser amount given would pay for textbooks, reduce class sizes, and add new programs at the Career Center. Chair Bryan stated she would support the motion in the hope that the union will come to the table and help this district address the proposed deficit. Trustee Stroebe believed the board will have to ask the voters for more money as the legislators did not come through. This board has an obligation to ask the taxpayers as we cannot decide for them. Trustee Stroebe asked legal counsel to ask the attorney general for an opinion also.

 

Those voting in favor of the motion were Greta Besch Moen, Connie Wardell, and Barbara Bryan. Those opposing the motion were Travis Smith, Lindy Graves, Teresa Stroebe, Travis Kemp, and Pam Ellis. The motion failed.

 

Trustee Graves made the following motion with a second by Trustee Stroebe:

 

Motion to roll over the contract in its entirety for 2012 and grant steps and lanes and grant Appendix B.

 

Mr. Weldon asked the board to keep in mind that as of July 1, 2011, the contract will be extended into FY 2012. Those voting in favor were Greta Besch Moen, Barbara Bryan, Travis Smith, Lindy Graves, Teresa Stroebe, Travis Kemp, and Pam Ellis. Connie Wardell opposed the motion. The motion passed.

 

Dr. Beeman reported a notice has been given to the other unions, the MPEA and the BCEA.

 

As there was no further business, the meeting adjourned at 9:45 p.m.

 

 

 

 

Barbara Bryan, Chair

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