November 10, 2014 F.H.S. Cafeteria

2014 – 15 Budget Challenges The adopted budget had a projected ending fund balance of 6% Assumed no change in students or salary schedule Assumed a reduction in aide time that did not occur due to student needs Resulted in increased cost of approx. $25,000 Student count is down 17 FTE from budget projection Associated reduction of revenue of $123,000 Total Budget impact of $148,000 leading to an adjusted projected ending fund balance of 2.8%

Where Did Our Savings Go? Fund Balance Trend - Planned vs Actual Instructional Staffing Compared to All Other Costs

Revenue & Expenditure Comparison

What if the retirement rate was still 25% instead of 35%? (+$270,000)... parents enrolled all 1 st – 3 rd graders in Waldron instead of MHT? (+$260,000)... the superintendent/board had held to an 8% minimum adopted fund balance policy ($+150,000)... parents hadn’t unexpectedly moved kids to other schools over the summer? (+$145,000)... state didn’t spend SAF on Colleges & Preschool? (+$134,000)... the birth rate hadn’t declined? (+$72,000 est.)... current contract had been settled for a true freeze? (+$58,000)... current contract had been settled for steps & longevity only? (+$13,000)... and which do we control?

Budget Adjustment Process Late October: Staff Budget Meeting & Survey End October:In form Community via Eagle Flyer & Parent Early November: Community Budget Forum & Survey Late November:Personnel/Finance Committee & Administration Develop Recommendation December 1:Board adopts 2014 – 15 budget amendment

Adjustments to Date Received a consolidation of services grant Increase in Title I funding Made building level/departmental budget line adjustments Identified new revenues and spending reductions totaling approximately $40,000 Added in recently released retirement offset revenue and expenditures of $270,000 Resulting amended fund balance of 2.9% Budget adjustment target of $100,000 to meet board adopted minimum 5% fund balance

Why a Minimum 5% Fund Balance? Not addressing the issue now will require $350,000 in reductions next year just to get to a 3% fund balance. Avoid Direct State Intervention or Management  New state regulation proposed and anticipated for districts below 5% fund balance  Priority to maintain local control Protect District Credit Rating  Earned independent A rating for last bond issue due to sound financial management and budget projection  Saved over $1m in cost to tax payers over term of bond  5% fund balance is key threshold to preserve credit rating for future generation

We’ve Been Here Before Staff and Community Budget Forums and process followed in 2009, 2010, 2011, 2013 March 2010 Budget Forum Presentation included most of the same options Staff and Community Surveys in the face of predicted steep reductions in funding in each case Federal Stimulus $ or available fund equity took us off the hook Some adjustments have been made, others have not

Finding Common Ground Solidify decisions around common priorities:  Sustain high student achievement levels  Continue full range of student experiences in and out of the classroom  Preserve appropriately low class sizes  Operate within our means to avoid state intervention and preserve our credit rating  Develop a program structure that provides stability for students, staff, and community

Emerging Plan Increase pay to participate, reduce athletic transportation, reduce class adviser positions, and other relatively small adjustments for a budget offset of $15,000 Reduce instructional aide time by the equivalent of 1.5 positions for budget savings of $15,000 (Exact positions are yet to be determined) Reduce teaching positions by the equivalent of 1.5 to 2 positions for a budget savings of $60,000 - $70,000 (Exact positions and grade levels are yet to be determined)

District Budget Trend EXPENSESAUDITEDAMENDEDChange From to TOTAL ELE. INSTRUCTION$1,544,123$1,938,289$420, TOTAL H.S. INSTRUCTION$948,245$1,010,861$69, TOTAL SPEC. EDUCATION$278,823$384,079$105, TOTAL TITLE /AT-RISK$53,749$94,329$40, TOTAL CAREER AND TECH ED.$91,899$127,742$35, TOTAL COUNSELING$41,948$65,987$24, TOTAL MEDIA/LIBRARY$93,283$31,344($61,938.76) TOTAL BOARD OF EDUCATION$35,972$35,950($22.00) TOTAL SUPERINTENDENT OFFICE$190,931$185,311($5,619.90) TOTAL PK -8 PRINCIPAL OFFICE$163,086$166,087$3, TOTAL H. S. PRINCIPAL OFFICE$134,589$144,611$10, TOTAL BUSINES SERVICES$40,204$40,394$ TOTAL OPERATIONS$330,668$349,084$18, TOTAL TRANSPORTATION$147,249$149,873$2, TOTAL ATHLETICS$177,276$189,385$12, TOTAL GEN. FUND EXPEND.$4,323,133$4,969,820$680,044.83

District Staffing Trend

County Class Size Comparison Kinderg arten 1st Grade 2nd Grade 3rd Grade 4th GradeM.S.H.S. Fowler P - W St. Johns ?27 O - E ?25 DeWitt? Bath?2322?26

Restructuring Options Restructuring this year must continue into future years Traditional Split Classroom Multi-Age Classrooms Teacher and a Half Approach Cap Staff and Split the Biggest Classes Teacher and an Aide Structure

Avoid Unintended Consequences Reducing Sports – 13 students leaving equals entire athletic budget Reduce Transportation – can drive them anywhere or to nearest bus stop Reducing HS Dual Enrollment & Online – Restructuring saves $50,000 annually Eliminate Services to MHT – FTE shared-time program generates $132,000 annually Class Sizes Larger than Neighbors – Schools of Choice option for smaller class size

Possibilities to Stabilize Funding Positive School Promotions Schools of Choice and Homebuyers Eagle Flyer features on outstanding staff and programs Special editions or brochures featuring Waldron School to young families Clinton County News articles for all grade levels Revamp Webpage Pursue Home School Partnerships Continue to Pursue Shared-Time Partnerships Reenergize the Fowler Public Schools Education Foundation

Process Moving Forward Continue to gather and analyze data to make informed decisions Evaluate all programs relative to our priorities and state and regional norms Communicate and inform stakeholders Review input from staff and community Continue to educate and nurture students in a positive school environment throughout the process Support and encourage one another as members of a school family throughout the process