1. If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and will never be--Thomas Jefferson

2. This isn’t about someone being right and someone else being wrong
This isn’t about someone being right and someone else being wrong. This is about what we collectively value for our children’s education.

3. Budget Options
On the provided note cards, please write down questions to be answered after the presentation
On the back side, please write down comments and suggestions that you want the school board to consider

4. The First Year: 2009 Funding Cuts
Amount of Funding Cuts: $280,000
School District Action
Local Option Budget (LOB—local property taxes) increase of 4 mills
A Mill will cost $11.50 per year for a $100,000 house
Businesses and farms taxed at a higher rate
Prior to that school year, Rock Creek had the 10th lowest LOB in the state. It is still 5% lower than the state average.
No pay raises for any employees
Frozen hiring for new positions
Budget cuts (next slide)

5. The Second Year: 2010 Funding Cuts
Amount of Funding Cuts: $240,000
School District Action:
Delay replacing carpet and classroom tech
Delay purchasing vehicles
Reduce summer cleaning help and staff development
Self-funded summer music lessons and national trips
Ended video streaming contract
Eliminated afternoon bus route
Reduced copier contract
Eliminated full-time substitute teacher
Eliminated Career/Tech part-time coordinator
Annual Savings for both years budget cuts: $150,000
No pay raises for any employees
New Facility Funding (next slide)

6. New Facility Funding
One time additional state funding for students in new SGES
Total new state aid: $525,000
The Catch: LOB must be 25% of General Fund
Local contribution through LOB: $210,000
Rate of return: 250%
Total NFF: $735,000
7. Raised LOB 3.4 mills and lowered bond and interest (bond payments) 2 mills
8. Total increase of 1.4 mills
Bond and Interest will have to go up next year

7. Uses for NFF Total estimated NFF: $735,000.
Paying off Gym Lease: $90,000
Make up budget shortfall from last year: $200,000
Catch up on network and classroom tech (few new items): $210,000
Catch up on vehicles (one bus and two vehicles): $125,000
Sound systems at RCJSHS: $26,000
Paint WES Gym: $10,000
Tractor: $32,000
Miscellaneous equipment and furnishings: $27,000
Total Planned NFF Expenditures: $720,000

8. Funding Cut for this Year (2011)
Governor’s proposal: Must be passed by legislature
$75 on base cut this year, which is $104,000 for us, because more state aid needed for more students, more poor students, bonds, lower property values, etc…
Cuts more difficult during the year because the budget is set.
We will make up for mid-year cuts with end-of-year cash balance or contingency reserve
Eliminated RCJSHS Media Center Aide position through attrition

9. Funding Cut for
We must make up $320,000 (plus any new costs) in our budget next year ( ).
This amount does not include increase or decrease in enrollment (district enrollment was steady last year).

10. New Expenses for
.75 new reading position at RCJSHS to handle larger incoming classes: $25,000
additional .5 P.E. position filled by shuffling current personnel?
End of federal stimulus for Title I: $25,000 (SGES had choice of Title I teacher or two aides)
5-6 Teacher at SGES: Transfer WES teacher or aide. Permanently add the position for the following year.
Health Insurance: A big unknown but estimating 10% increase: $60,000
General Inflationary costs: $20,000
Considering utility renovation payment and ended lease-purchase payment for the gym to be a wash.
Teacher Pay: Negotiated
TOTAL BUDGET SHORTFALL FOR : $450,000

11. Our Current Reserves: Contingency Reserve
Our savings account that can be used for anything
Typically used for late state aid payments, mid-year funding cuts, or unforeseen expenses
Current Balance: $600,000
Money came from budget cuts and unspent funding increases caused by enrollment increases ( )
Once it’s used it’s gone
I would recommend spending no more than $150,000 per year for three years.

12. Our Current Reserves: Capital Outlay
Used for buildings and equipment
Can not be used for operating costs (salaries, fuel, food, etc…)
Current Balance: $1.1 million
Used to pay for utility upgrade lease-purchase ($195,000 per year)
No current mill levy tax to support this
Potential need to spend $600,000 on a pre-planned addition at SGES
I would recommend not spending Capital Outlay at this time

13. Our Current Reserves: End of Year Cash Balances
We have money left over each year that is usually transferred into Capital Outlay or Contingency Reserve
We have to budget higher for some items because of unknown costs. School districts cannot operate in the red!
Some costs (utilities, fuel, food, etc…) fluctuate a lot.
Last year, we held off on several large expenses and had about $200,000 left over, which was transferred to Contingency Reserve
I don’t think we can count on cash balances for budget purposes

14. Revenue Options: Tax Increase
We can raise our LOB to 30% of General Fund (31% if an election is held)
State LOB average is 30%
Raising LOB to 30% would require an LOB increase of about 4.5 mills and would raise about $300,000 (estimated based on this year’s budget and numbers will change)
Don’t forget: Bond and Interest levy must go up next year

15. Revenue Options: Private Funding of Activities
There are legal limits for charging academic fees
Activities are a very important part of education
Legally, activities are less important than academics that determine accreditation and college admission
Should we have privately funded activities that poorer students can’t participate in?
If not, how do we pay for those who can’t afford to pay?

16. Potential Budget Cuts Nobody wants to cut the budget but we have to
All budget cut options are bad to some degree
We must look at the financial health of the school district instead of our own personal needs and desires
The following is a preliminary list of potential budget cuts. In some cases, potential cuts are listed to provide information.
Names and personalities must be kept out of the public discussion
I will offer a brief analysis of each potential cut

17. Budget Cutting Options
Eliminate tech purchases and catch up later: $80,000
Eliminate vehicle purchases and catch up later: $70,000
Eliminate additional teacher work days (curriculum writing): $13,000
Eliminate summer school: $17,000
Eliminate after school tutoring: $8,000
Eliminate one northern bus route: $6,000
Eliminate one bus route by not transporting students that live within 2.5 miles of their school: $6,000
Eliminate before-school strength program: $3,500
Eliminate summer strength program: $5,000
Eliminate Parents as Teachers program: $17,500
Eliminate MS Sports: $50,000

18. Budget Cutting Options
Eliminate teacher aides: $15,000 per aide
Reduce Building Budgets at WES and RCJSHS: $10,000
Eliminate one administrator for and have superintendent also serve as a building principal: $75,000
RIF Teachers: $40,000 per teacher
End Senior Projects: $3,000
Eliminate SGES Intramural Program: $2,300
Start school after Labor Day or End School Early: $12,000
Switch to four day school week: $70,000
Don’t replace RCJSHS Media Center Aide: $22,000
OTHERS?
Total Potential Budget Cuts: $380,000 (rounded, does not include reducing teachers, aides, or one administrator)

19. The Impact of Cutting One K-6 Teacher (Students per Teacher estimate for based on official September enrollment count)
School
Kindergarten
1-2
3-4
5-6
WES
N/A 36 39 26
SGES 27 25 29 34

20. Budget Recap
Total Budget Shortfall for Next Year (not counting negotiations): $450,000
Total LOB Option: $300,000
Total Budget Cut Options: $380,000
Total Contingency Reserve Option Per Year: $150,000
Remember: Using contingency funds and putting off
classroom tech and/or vehicles are temporary fixes.

21. Where Do We Go From Here?
Comments and suggestions will be compiled for BOE to read
BOE may want to categorize budget cuts into 3-4 phases with lower phases being cuts that are least negative to students
BOE will make budget decisions late spring or early summer

22. Keeping a Positive, Rock Creek Attitude
Avoiding Anger and Blame
Reaching Consensus
Maintaining Effective Educational and Co-curricular Programs for our Kids
Balancing Taxes and Budget Cuts
A Fair Debate and a Fair Compromise Should Lead to Fair Public Support