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2 INSURANCE District Insurance Committee is a Sub-Committee to the Bargaining Leadership Team (BLT). The School Board contributed an additional $982 this year for each employees Insurance Benefits which equals 2.17% of the Average Teacher Salary. The School Board is providing a Fully Funded Plan for Individual employees and we expect this will continue. We implemented two (2) new plans this year and that process has gone very well. We have had issues, but with the help of CIGNA we are working to address those issues as promptly as possible. If you have a question, please submit it on a card before you leave tonight.

3 BUDGET Presented by: Tony Donato & Bill Collins

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8 Undesignated Fund Balance

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Potential Deficit Reduction Plan 1Implement instructional staffing benchmarks consistent with state class size standards and minimum enrollment requirements for all subject areas 2Implement instructional support staffing benchmarks for school and district offices 3Transfer ESE compliance specialist and other support staff positions currently funded by district funds to IDEA federal funds 300,000 5,800,000 2,000,000

Potential Deficit Reduction Plan 4 Implement a staffing model for school resource officers that will bring expenditures in line with the Safe Schools categorical 5 Fund the personnel costs of attendance assistants within the Safe Schools grant 6 Negotiate policy that retired employees who are rehired after 7/1/09 and employees on extended DROP will not be paid for experience included in calculation of retirement benefit 1,000, , ,000

Potential Deficit Reduction Plan 7Eliminate the payment of stormwater fees as permitted by contract 8Hold School Board health insurance contributions at or below the school year rate 9Freeze purchases of white fleet vehicles for the fiscal year and establish criteria for future purchases 125,000 3,780,000 70,000

Potential Deficit Reduction Plan 10Reduce utility costs for portables removed from school and district sites $50k per 100 portables removed) 11Invoice Four Corners Charter School for the costs of accounting services provided by the District 12Reduce categorical expenditures in proportion to state reductions in appropriations ( Reading, DJJ Supplement, Instructional Materials, SAI) 100,000 17,000 1,000,000

Potential Deficit Reduction Plan 13Reduce district staff 14Freeze or eliminate vacant positions at the district office 15Reassign district staff to school sites (Items 13, 14, and 15 total 5% of cost of district staff.) 16Reduce district department discretionary appropriations (Items 13, 14, 15 and 16 total 5.4% of department appropriations) 700, ,000 1,000, ,000

Potential Deficit Reduction Plan 17Reassign or reduce ESOL Compliance Specialists to fill school instructional vacancies to keep ESOL staff costs within FTE funds generated 18Reassign or reduce school psychologists and social workers in proportion to state budget reductions 19Staff schools in anticipation of 1.5% reduction in student enrollment 900, ,000 1,250,000

Potential Deficit Reduction Plan 20Implement districtwide 4-day work week during the summer 21Implement a comprehensive energy savings plan to achieve a reduction of at least 10% of utility costs 22Delay adoption of new language arts, music and health textbook series pursuant to Senate Bill 6A 150,000 1,300,000 1,500,000

Potential Deficit Reduction Plan Additional Savings Proposals Dependent on Legislative Action: 23Request delay in implementation of Class Size Reduction to room by room standard 24Request delay in scheduled retirement rate increase 25Exercise option to transfer up to.5 mills of 1.75 capital outlay millage to General Fund Total of Above Items Total Needed Additional Savings Needed 4,200,000 2,135,000 6,500,000 36,687,000 46,284,390 9,597,390

Potential Deficit Reduction Plan Additional Items Under Consideration 26Implement a custodial staff allocation model based on facility size and use, and examine expanding the use of contracted custodial services 27Explore savings options for districtwide lawn care and maintenance

Potential Deficit Reduction Plan Explore potential revenue generating ideas 28Contract with major advertisers to support educational programs 29Issue RFP/Bid for consolidated technology purchases 30Issue RFP/Bid single-vendor beverage and snack contract 31Increase lease rates for cell phone towers on district-owned properties 32Support a one-cent increase in the state sales tax rate for the next three year as proposed by the Florida Education Association 33Explore developing an in-house credit card payment system for food service to replace mylunchmoney.com and retain processing fees for the District 34Utilize funds that may become available from the federal stimulus legislation (ARRA). Recent estimates for Osceola are $7.1 million in Title I and $9.4 million in IDEA over two years, and other categories yet to be determined, e.g. construction, energy, dislocated workers, homelessness prevention, and budget stabilization.

21 QUESTIONS & ANSWERS 1What is the total dollar amount in the "reserve account" at this date? What is the minimum amount the state says we must maintain in that account? The current projection is that we will have $31.3 million in undesignated fund balance at the end of this year. This is a decline of $11.2 million from The critical problem comes next year when the fund balance will fall below 0 if we do not receive additional funding or make drastic cuts. The state requires a minimum of 3% of revenues, or approx $11 million, but we will not allow the fund balance to fall that low.

22 QUESTIONS AND ANSWERS 2What is the current salary of a School Board member? $35,236. This is set by statute. 3What is the cost of giving step to just teachers? $2.1 million for teachers, $3.3 million for all employees 4What is the cost of a 3% raise for teachers with 25+ years experience? When funds become available for raises, the bargaining team will evaluate many different scenarios. By contract, the first thing to be considered when funding increases is step, which we will negotiate at that time. 5What is the cost of a 3% raise for teachers inclusive of their step and 3% for teachers that no longer received their step? Same 6What is the cost of a 3% raise for teachers inclusive of their step, 3% for teachers that no longer receive their step, and a raise of 3% for any PSS person making under $12 per hour? Same

23 QUESTIONS & ANSWERS 7When we are able to give steps again, will I be on the step for the years experience I have, or will I lose a year? This exact plan will be negotiated, but the intent is to restore everyone to the correct step based on years of experience. We are keeping track of everyone's correct years of experience. 8What is planned to be done for the step increases of teachers who reached their 20 or 24 step this year? The BLT has tentatively agreed, pending ratification, that all salaries are frozen this year. The BLT is creating a recovery team to determine a method of restoring steps as funds become available.

24 QUESTIONS & ANSWERS 9How can the Board justify the fact that some people hit those milestones last year and received a large step, yet this year the teachers received nothing except an increase in insurance costs? Last year we had money. This year we don't. The state reduced funding to the school district. 10If we do not receive a step increase this year, will we at least receive our year of service to calculate future steps? Yes

25 QUESTIONS & ANSWERS 12Why have salary steps been mysteriously dropped from communications? It seems as if there was a ruling it has not been communicated to members. The financial condition of the state has been deteriorating rapidly during the year. We knew state funding cuts would be necessary, but the amount was unsettled until the special session in January. We waited to see if the legislature would do anything to improve the revenue picture before finalizing salary discussions. 13The School Board chose to direct the administration to not discuss pay with the Union. If that decision is allowed to stand unchallenged, in essence the School Board can choose to never again discuss pay with the Union. Why does the Union not insist on having a discussion? The School Board has never directed the administration not to discuss salaries with the BLT. As explained in the previous answer, discussions were delayed until after the legislature acted in January. 14If we go to a 4-day week, is our salary going to be affected? If so, how? We are not currently discussing going to a 4-day week. If we do, the intent would be to increase the hours worked per day and maintain the same salary.

26 Our goal is not simply to help us survive this financial crisis, but to ensure Osceola Public Schools flourish and continue to provide the best possible educational experiences for each and every student.