School budgeting in tough times NEASBO – Sturbridge, MA – July 25, 2013

The School Superintendents Association advocates for the highest quality public education for all students, and develops and supports school system leaders. 2

vs Cut Spending Cut Waste 3

Cutting costs Cutting waste Cutting costs Cutting waste 4

Stafford County Public Schools, Stafford, VA MedExpert 5

1.Medical case management 2.Only company of its kind…in the world 3.Identifies leading medical experts for YOUR needs 6

Diagnosis Helps you efficiently maneuver the healthcare system Second opinions Doctor’s appointments Experimental treatments Appointments Claims 7

Lower Insurance costs Lower Absenteeism Higher Productivity Higher Satisfaction 8

20% What part of a public school employee’s salary Washington D.C. Metro area equals healthcare costs? 9

The healthcare industry itself estimates this is pure waste 10

Key Audits 11

Fiduciary duty Industry average 4-8% savings in one year Simple question: Who is eligible? 12

Audit cost $96,000 Saved over $1 Million 13

Fully Insured? Large Deductible? 14

July 1, 2005 – June 30, 2006 $845,285 $211,321 (fully insured premiums)* (large deductible premiums) $633,964 (1 st year savings) 15 * 10 year average of claims paid $295,472

Textbooks Furniture Freight Supplies School 16

 Re-evaluated shipping options  Saved over $1 million  Textbooks 17

Partnerships Can help cut costs 18

National non-profit purchasing co-op For school districts and local and state governments Saved school districts $25 million from July 1, 2012 – June 30, 2013 Average savings 12-22% 19

Improved Efficiencies Pre-Awarded Contracts Saved TIME & MONEY 20

The people in BROWN 21

Furniture/Equipment Textbooks Supplies Documents School District Warehouse Individual Schools 22

Furniture/Equipment Textbooks Supplies Documents Individual Schools Eliminate Waste Cut Costs & 23

Easy sign up Cost Control Billing Solutions Vendor management Inbound visibility 24

17 Administration Centers1 Central Administration Building 25

 Used a development advisor to create a public/private partnership  Built the James F. Oyster School for no out-of-pocket cost  Saved in excess of $2 million 26

 Financed $10,000,000 of Capital Improvements with savings from lowered utility costs  Made the money back in seven years PERFORMANCE CONTRACT Without affecting the budget ! 27

 Expense Audit  Banking Services  Copiers  Phones  Credit Card Processing  Day Care In Schools  Short Term Borrowing  Credit Union  Budget Awards (ASBO, GFOA)  School Efficiency Study 28

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 Effective transparency  How to present a budget  Budget websites  Budget at a glance 35

36 Chuck Woodruff Chief Operating Officer 1615 Duke Street Alexandria, VA AASA’s 2010 budget toolkit is available for AASA members. Join AASA

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 Gibson Consulting  WABE Guide  (picture of textbooks) 38