|
|
2008-09 General Fund and Capital Fund Budget Considerations
Duluth Public Schools: Executive Summary Date: 4-15-08
During its regular meeting April 15, 2008, the school board approved adjustments to balance the budget for the 2008-09 school year.
Over the past two years we've looked primarily at General Fund considerations during the budget process. This year, in addition to addressing the General Fund, we also looked at the Capital Fund. Why? Approval of the Long Range Facilities Project and the funding it brings to our buildings could help us both address ongoing capital needs and look at reducing spending in the capital fund by about $2.0 million.
Click Here to see an overview of the 2007-08 District Budget.
General Fund: Expenses are projected to exceed revenues by $3.95 million in 2008-09. During the budget process, we looked for ways to balance expense to revenue and possibly reinvest in the classroom.
The projected $3.95 million General Fund deficit takes into consideration the reduction about 10 FTE teacher positions due to declining enrollment. We anticipate most of that reduction will be accomplished through retirements.
Capital Fund: Over the past several years we've seen a deficit in this fund and addressed it using capital fund balance dollars.
Budget Planning: The budget planning process began in December 2007. Parents, staff, students and community members have been invited to share their ideas for reducing the budget and/or making investments.
Budget Plans: "Priority Considerations" are those recommended and approved for this budget cycle. "Possible Considerations" are those which may need to be considered in the future. "Not Considering at This Time" are items which were not recommended this budget cycle.
Proposals for this budget cycle included consolidating the district's Business Services and Human Resources departments to realize more efficiencies, reducing nearly $1 million from district administration and about $250,000 from school administration.
Why Ongoing Deficits? Like most Minnesota school districts, Duluth has had to address budget deficits for well over a decade. Increases to per-pupil funding from the state have not kept pace with increases in the cost of living while some key expenses are rising significantly, like health care coverage and energy costs. If nothing changes, deficits are projected for at least another five to six years and possibly beyond that.
D eclining enrollment also impacts the budget because state funding is calculated in large part based on numbers of students. In 2006 former state demographer Dr. Hazel Reinhardt did an in-depth demographic study of the district and projected enrollment to continue to decline for the next five years from about 10,000 students to somewhere between 9,000 and 9,300 students. According to the demographic study, the major reason Duluth sees declining enrollment is not because students are going somewhere else, but because there are fewer young adults to have children. The current generation, Generation X, is 60% smaller than previous generations. K-12 enrollment has declined in recent years on a local, state and national level because of this trend.
Would an operating levy help? According to the Minnesota Department of Education, next year 306 out of 340 school districts will have an operating levy. Operating levies used to be for "extras," special projects or desirable programs. Now most districts find it necessary to pass levies just to fund core programs like math, science, reading, and basic expenses. During a recent address to the Minnesota School Boards Association, Governor Pawlenty called the current school funding system "largely broken." An operating levy would help in the effort to keep cuts away from the classroom, but not enough to eliminate budget cuts.
To share your thoughts and considerations, please email william.hanson@duluth.k12.mn.us or send a letter to Bill Hanson, Director of Business Services, at 215 North 1st Avenue East, Duluth, MN 55802.
Members of the community were also encouraged to attend public budget meetings. All meetings took place in Historic Old Central High School, 215 North First Avenue East in Duluth:
- February 5, 5:00PM Spend An Hour With The Superintendent: Budget Talks
- February 11, 4:30PM Business Committee meeting
- March 4, 5:00PM Spend An Hour With The Superintendent: Budget Talks
- March 10, 4:30PM Business Committee in Old Central - Budget 1st Reading
- March 18, 6:30PM Regular School Board Meeting in Old Central - Budget 1st Reading
- April 1, 6:30PM Spend An Hour With The Superintendent: Budget Talks
- April 7, 4:30PM Business Committee in Old Central - Budget 2nd Reading
- April 15, 6:30PM School Board votes on budget proposal
BUDGET CONSIDERATIONS
|
Level 1 - Priority Considerations (Approved for the 2008-09 School Year)
|
Savings
|
|
Cost reduction goals - HR and Business Services
|
500,000
|
|
Eliminate opportunity to carry over unused budgets
|
150,000
|
|
Implement additional energy savings. Reduce the number of appliances in buildings.
|
30,000
|
|
Allocate all site-specific printing costs to sites - Provides more accurate allocation of expenses
|
0
|
|
Reduce Out of District Mileage - Cost of a rental car for one day trip to the Twin Cities is approximately $90.00 with gas as compared to 145.00 for mileage reimbursement ($50/trip)
|
5,000
|
|
Implement enhancements to our payroll process (for example paperless system)
|
5,000
|
|
Automated Cash Reconciliation
|
0
|
|
Eliminate Continuous Improvement Position
|
112,000
|
|
Increase chargeback to Food Service
|
100,000
|
|
Sell old computers to other districts
|
2,000
|
|
Attracting/Retaining Students. Goal is to increase ratio by 0.5%
|
312,500
|
|
Reduce ESL Staffing by 1 teacher and 1 paraprofessional
|
120,000
|
|
Reduce building hours at Rockridge/Lester Park
|
47,000
|
|
Reduction of support staff from Learning Services
|
200,000
|
|
Disperse Lincoln Park Middle School sixth-eighth grade students to other Duluth Public Schools middle school sites
|
276,000
|
|
Align STC Class sizes to equate District averages
|
100,000
|
|
Reduce building level principals/assistant principals and AD's
|
250,000
|
|
Reduction in Special Education para-professionals
|
120,000
|
|
Termination of MA processing contracts
|
20,000
|
| UPDATE: Increase student to teacher ratio by 1.0 |
1,160,000
|
| UPDATE: Eliminate use of Lincoln Park's pool. |
50,000
|
|
UPDATE: Co-Curricular Programs-Increase participation fees (approximately 20%)
|
56,000
|
| UPDATE: Co-Curricular Programs - Increase gate prices |
TBD
|
| UPDATE: Implement one-time reductions to capital fund related to textbooks and computer purchases in FY 2009 (to avoid increasing student to teacher ratio by 2.0). |
592,000
|
| UPDATE: Implement a spending freeze on FY 2008 capital purchases in order to create additional fund balance (to avoid increasing student to teacher ratio by 2.0). |
579,400
|
|
Technology Reductions/Capital Fund
-Reduce the number of computers in the district by going to a 4:1 student to computer ratio. The current ratio is slightly lower than 4:1.
-Change the replacement cycle for computers from five years to six years. The increased capacity and processing power of the new models allow them to be effective for longer periods of time.
-Reduce the number of district servers by taking advantage of new server software that allows us to more fully use a smaller number of servers.
These changes are reductions in annual costs, not a one-times savings.
|
600,000
|
|
Additional Capital Fund considerations
-Includes reducing allocations to district administration and schools for personnel, textbooks and musical instruments.
|
873,100
|
|
SUBTOTAL:
|
6,260,000
|
|
Level 2 - Possible Considerations
|
Savings
|
|
Increase revenues through advertising on busses
|
70,000
|
|
Eliminate legal support at board meetings
|
4,500
|
|
Contract services to other districts (purchasing, storeroom, facilities management, others)
|
1,000
|
|
Implement new "Building Use Policy & Guidelines". Increase utilization of buildings by the community. Use for wedding receptions, walking clubs, kids recreation from 8-10 pm. Use exercise rooms
|
2,500
|
|
Allocate technology costs to proper program code - Provides more accurate allocation of expenses
|
0
|
|
Implement additional energy savings. Reduce the number of appliances in buildings.
|
100,000
|
|
Allow building custodians & engineers to do more maintenance work within their building
|
TBD
|
|
Collect restitution from school vandalism from parents
|
0
|
|
Seek different approach for funding full day kindergarten & making loans available
|
0
|
|
Charge for students to ride the bus within mileage limits
|
TBD
|
|
Include Garfield site in Tax-Free Zone to enhance sale opportunities
|
0
|
|
Adjust elementary day - less expensive options
|
480,000
|
|
Eliminate top insurance plan
|
500,000
|
|
Reduce classroom cleaning in buildings to twice per week
|
143,000
|
|
Combine & reduce Habitat and Teen Parent staff
|
80,000
|
|
Go to paperless board meetings/packets
|
3,500
|
|
Staff Development reduction to .5 percent
|
275,000
|
|
Additional Staff Development reduction to 0 percent
|
275,000
|
|
Increase District class size by an additional 1.0
|
1,160,000
|
|
Middle school schedule reduction from a seven period day to six period day
|
900,000
|
|
Eliminate zero hour at the high schools
|
240,000
|
|
Blending of additional co-curricular programs at the high schools
|
50,000
|
|
Review number of paraprofessionals and reduce in-line with enrollment reductions
|
TBD
|
| UPDATE: Increase Recycling efforts to reduce garbage costs. |
0
|
| UPDATE: Change Kindergarten Schedule to All Day, Every Other Day |
80,000
|
| UPDATE: Reduce MS ratio by 3.5 teaching positions (FY 2007 Investment) |
280,000
|
| UPDATE: Offer Season Tickets for sporting events |
TBD
|
| UPDATE: Shutdown elementary schools on Friday afternoon for the weekend to save energy |
0 |
| UPDATE: Eliminate 8th Grade STC Options |
260,000
|
|
SUBTOTAL
|
|
|
Level 3 - Not Considering At This Time
|
Savings
|
|
Charge a square footage space cost to other programs that utilize space
|
100,000
|
|
Eliminate Principal Leadership Academy Program
|
TBD
|
|
Reduce District Assessment Coordinator Position to ½ time
|
48,000
|
|
Eliminate Assertive Discipline Positions (principals take over)
|
0
|
|
Reduce Elementary Clubs to 2 per building
|
0
|
|
ATPPS Revenue
|
1,600,000
|
|
Provide early retirement incentives
|
0
|
|
Turn off heat at Garfield building
|
16,000
|
|
Charge full cost of participating in co-curricular events as part of participation fee
|
TBD
|
|
Charge substitute costs for co-curricular events as part of participation fee
|
15,000
|
|
Move Piedmont students to Lincoln Park and sell Piedmont
|
LRFP
|
|
Sell HOCHS building
|
LRFP
|
|
Move 8th graders back to high schools
|
LRFP
|
|
Negotiate rate change in 1/6 overloads similar to that of the St. Paul School District.
|
185,000
|
|
Professional licensed teachers should use their time to maximize student learning. Teach six (6) hours per day. No 6th assignments or overloads
|
TBD
|
|
Paraprofessionals and part time employees should be hired to do jobs not needing certification such as, hall monitors, lunchroom supervision, study halls, bus duties and ISS.
|
TBD
|
|
All prep hours scheduled before and after school allowing for common planning time.
|
TBD
|
|
Charge all employees with single health insurance 10% of the cost. Remove disincentives that currently exist.
|
TBD
|
|
Reduce the number of professional leaves for teachers from 10 per year to 5 per year & re-evaluate the process for all professional leaves for District employees
|
TBD
|
|
No longer hold retirement party
|
4,300
|
|
No longer provide lunches for relicensure committee
|
500
|
|
Employees who take time off during the work day to coach/advise should have to take vacation or leave
|
TBD
|
|
Limit professional leave days that are scheduled during the work day-pay flat fee for after hours meetings
|
TBD
|
|
Implement cash incentive program for teachers not to take sick days
|
TBD
|
|
Have all 52 week contract employees take one week without pay
|
176,000
|
| UPDATE: Combine Piedmont and Lincoln Elementary Schools (ahead of current schedule) |
424,000
|
| UPDATE: Combine Grant and Nettleton Elementary Schools (ahead of current schedule) |
424,000
|
|
SUBTOTAL
|
4,904,500
|
INVESTMENTS:
LEVEL 1 - PRIORITY INVESTMENTS (Approved for the 2008-09 School Year) |
Investment
|
|
Adoption of formative growth assessment tool
|
70,000
|
|
Add an Early Childhood Special Education (ECSE) Teacher (Birth-3)
|
80,000
|
|
Add an Early Childhood Special Education (ECSE) Teacher to serve students ages 3-5
|
80,000
|
|
Add an EBD Setting I*II Teacher for Kindergarten and Grade 1 students with Emotional/Behavioral Disorders
|
80,000
|
|
SUBTOTAL
|
310,000
|
LEVEL 2 - POSSIBLE INVESTMENTS
|
Investment
|
|
Development/Planned Giving position to raise district contributions through foundation donors
|
40,000
|
|
Stipends for teacher leadership
|
50,000
|
|
Explore the development of a Diversity Intervention Team to address disproportionality in Special Education
|
TBD
|
|
Align Middle School Music
|
25,000
|
|
Hire a consultant to analyze the food service program and implement changes to achieve profitability
|
50,000
|
|
Hire retired teachers as part-time coordinators and implement a substitute development program
|
TBD
|
|
Broadcast all School Board meetings
|
5,000
|
|
Purchase web based software to make board meetings/packets paperless
|
3,700
|
|
SUBTOTAL
|
173,700
|
LEVEL 3 - NOT CONSIDERING AT THIS TIME |
Investment
|
|
Develop a full-time substitute pool of fifteen (15) teachers for difficult to fill substitute positions such as Special Services positions. This will help us develop a pool of candidates for full-time positions as our more senior employees retire.
|
300,000
|
|
SUBTOTAL
|
300,000
|
|
|
