Basics of a Presentation

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1 COMMUNICATING FINANCIAL INFORMATION TO STAKEHOLDERS MATTHEW PRZYWARA, CFOO SCHOOL DISTRICT OF LANCASTER KIMBERLY REYNOLDS, BUSINESS MANAGER-SCHOOL DISTRICT OF LANCASTER PASBO 62 ND ANNUAL CONFERENCE AND EXHIBITS, PITTSBURGH March Basics of a Presentation 2 1

2 HINTS FOR A SUCCESSFUL PRESENTATION Plan Carefully Do your research Know your audience Time your presentation Practice your presentation Speak comfortably and clearly 3 EFFECTIVE POWERPOINT SLIDES Use design templates Standardize position, colors and styles Include only necessary information Limit the information to essentials 4 2

3 EFFECTIVE POWERPOINT SLIDES (CONT D) Content should be self-evident Use colors that contrast Be consistent with effects, transitions and animation Too many slides can lose your audience 5 TEXT GUIDELINES Generally no more than 6 words a line Generally no more than 6 lines a slide Avoid long sentences Larger font indicates more important information Font size generally ranges from point 6 3

4 TEXT GUIDELINES (CONT D) Be sure text contrasts with background Fancy fonts can be hard to read Words in all capital letters are hard to read Avoid abbreviations and acronyms Limit punctuation marks 7 CLIP ART AND GRAPHICS Should balance the slide Should enhance and complement the text, not overwhelm No more than two graphics per slide Presentations can also be saved in HTML format and inserted in a web page 8 4

5 TALKING ABOUT SCHOOL BUDGETS Goal of the Budget Presentation Not just balance sheets of dollar figures Story of the financial backbone Essential tools Provides a road map of the educational system 9 BUDGETING A Budget is Not.. A partisan political tool and yet still represent the educational needs of the total community Self-serving to special-interest groups and able to represent the greater public good A forum for achieving personal advantage The sole basis for evaluating administrative performance A vehicle to censure previous actions 10 5

6 PRODUCTIVE BUDGET STORY Quality of life in our community is connected to public schools Impacts economics of the future Continuing cuts to programs will undermine the school system Long-term strategic decisions 11 BUDGETING A budget if properly planned and presented will provide benefits beyond legal compliance. Cost of programs on a per-student basis Where the money comes from Relationship of costs with programs Costs associated with building maintenance Communicate financial need to the business community Serves as an overview of the educational system in the district 12 6

7 BUDGETING (CONT D) Educates the staff about the interrelationship of specific activities Aids in evaluating planned changes and the progress toward completion Increases public and business community confidence Demonstrates and supports orderly planning and action Establishes a framework for work programs Helps communicate the return on the investment of tax resources 13 BUDGETING Adopting a budget is one of the most important functions of an educational system Price Tag on Programs & Services Achieve goals and objectives Budget is a balance of local policy choices Map of the educational environment Provides administrative guidance 14 7

8 DEFAULT THINKING ON SCHOOL BUDGETS Challenge for School Board Members & the Public Default thinking leads in unproductive directions 15 ATTITUDES ABOUT SCHOOL DISTRICTS SHAPE THINKING ABOUT SCHOOL BUDGETS When citizens think of school districts as just politics, they are likely to think that school board members and superintendents use budgets to benefit their own interests. When citizens think of a school district as a red-tapebureaucracy, they are likely to think that much of our resources will be wasted by the invisible, inefficient bureaucracy. When citizens think of themselves as merely consumers of school district programs and services, they are likely to consider how they personally benefit. They may ask What s in it for me? I shouldn t have to pay for things the District does that I didn t request and don t need. 16 8

9 ORGANIZE THE FORMAT Common sense Household Budgets Metaphor to Use Tighten our belts Tough and painful cuts Through this lens it is hard to see how increasing revenues could be part of the solution 17 Recommendations for Changing the Conversation 18 9

10 USE VALUES TO CONNECT Articulate the public good and shared value that school budgets make possible i.e. they pay for the educational systems to develop the future leaders, workers and members of our economy for the future 19 EXPLAIN HOW WE ALL BENEFIT Not just a consumer Not just a taxpayer Member of the community as a whole Need for a well-supported school system Focus of the broader impact not just the recipient of the program or service 20 10

11 FOCUS ON SHARED RESPONSIBILITY OVER TIME Connections between past and future decisions Budget & tax choices to meet future goals & objectives Reminder that past decisions made the systems of today 21 USE STATISTICS WISELY Avoid using too many statistics and give them context and meaning. Use the most compelling numbers and make sure they help tell the budget story in a vital and understandable way

12 DON T INCITE CRISIS THINKING Crisis rhetoric does not have the intended response of engaging your audience in a thoughtful consideration of budget decisions. In fact, the opposite is often true. Rather than using inflammatory crisis language, present problems as serious but solvable, and offer choices and solutions. 23 AVOID TECHNICAL JARGON LANGUAGE Program acronyms like BEF, EIT etc. Budgeting terms like fiscal year, authorized budget, full-time equivalent positions etc. Sophisticated statistical terms like inflation-adjusted, per capita, percent change from baseline etc. If you do, explain the terms in a 24 handout or on your slide 12

13 TELLING THE BUDGET STORY DIFFERENTLY We Need to Move Beyond. Laundry Lists Crisis The Vulnerable Short-Term Thinking How much will it cost?..to a Productive Explanation Values & Objectives Choices & Solutions Our Communities Long-Term Thinking What kind of School System do we want? 25 Talking About Revenue When we talk about school budgets, we obviously also need to talk about school revenues. This comes with its own set of challenges and strategies

14 Taxes have become disconnected from their purposes. 27 When those of us who work on these issues think of school districts, we see the impact of what we do all around us. But, that is not necessarily the picture the public has in mind

15 Conversations About the Need for Revenue Cannot be just about the money and/or who needs to pay... They must connect the dots between the shared goals and desires people have for their school system and the tools and resources necessary to achieve them. 29 Pragmatic Management We need to promote a pragmatic manager stance. Budget and tax decisions are the way we build and maintain the things that keep our schools functioning well, now and into the future

16 SHARED STEWARDSHIP From taxpaying consumers to civicminded stewards of school systems and communities. We all benefit when we support the school systems that create community wellbeing and a healthy economy. 31 KEY FACTS IN ORDER Clarify key assumptions Provide analysis NOT detail What is your total cost (investment)? Is there any new staff needed? Are there recurring costs? 32 16

17 KEY FACTS IN ORDER (CONT D) Are there one time costs? Will other costs go down as a result of this implementation? Funding issues Where does the funding come from? Provide examples of alternatives for funding Grants One time costs vs. recurring 33 EXAMPLES OF BUDGET SLIDES 34 17

18 LOCAL CHALLENGES 4% Enrollment Spike in last 2 Years (400 Students) 24% of Assessed Value is Tax Exempt ($21.5MM Tax Value) Tax Appeals in Process ($500K Potential Annual Revenue Loss) Over 50% of incoming Students have an IEP 16% of Students are English Language Learners Over 900 Homeless Students (8% of Student Enrollment) Growing refugee population (4.0% of Student Enrollment) 83.6% Free/Reduced Lunch Limited ability to increase revenue 35 ENROLLMENT 12,000 11,800 11,600 11,400 11,200 11,000 10,800 10,600 10,400 10,200 10,000 Downward Trending Enrollment is Unpredictable in Urban Districts & Economic Recession Budget based on Status Quo Enrollment 11,300 Actual Projected Source: SDoL Records and John C. Martin Associates, LLC

19 STATE CHALLENGES ACT 1 Index Local & State Tax Dollars Interest Revenues Cost of Living PSERS Inflation Energy Costs Mandates Funding Formulas Charter Schools Special Education School Construction 37 PLANCON REIMBURSEMENTS $30,800,000 District Share State Share Reduction of PLANCON reimbursement represents $1 MM per year. $94,200,000 Urban Districts need to renovate and create new learning spaces due to aging buildings. PLANCON reimbursements represent a large funding stream to offset the Debt Service expenditures on an annual basis

20 CHARTER SCHOOL RISING COSTS $6,000,000 $5,000,000 60% Represent Cyber Charter Expenses ($2.91 MM) $4,000,000 $3,000,000 $1.1 MM $1.25MM $1.3 MM $1.38 MM $1,45 MM Special Ed $2,000,000 $1,000,000 $750K $1.8 MM $2.4 MM $2.9 MM $3.0 MM $3.2 MM $3.4 MM Regular Ed Charter Reimbursement $- 39 PSERS 35.00% 30.00% Rate in 5 Years 30.14% $25.1 MM 28.30% 29.15%30.14% 25.00% 20.00% 78% Increase $2.4 MM/Year $12.3MM 21.40% 25.80% 15.00% 16.93% 10.00% 5.00% 4.23% 4.69% 6.46% 7.13% 7.13% 4.76% 4.78% 5.64% 8.65% 12.36% Current Rate 16.93% $12.7 MM 0.00% 1.15% 40 20

21 PSERS INCREASE VS. NEW TAX REVENUE $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Limited ability to increase taxes just to pay for increased PSERS cost. Increase Tax Revenue 41 PSERS COST VS. STAFF $25,000,000 1,750 $20,000,000 $15,000,000 $10,000,000 $5,000,000 1,700 1,650 1,600 1,550 1,500 PSERS Staff $- 1,

22 ASSESSMENT TREND 4,000,000,000 3,000,000,000 2,000,000,000 1,000,000,000 Projected Decrease in Assessment Assessment Appeals $500K 0 *Reassessment in REVENUE BY SOURCE (EXPRESSED IN MILLIONS) 60% Entitlement Grants (Title I, II, III) 10% 2% Local State Federal 41% Other 62% Basic Education 46% 78% Real Estate Taxes 44 22

23 FUNCTIONAL SPENDING WHERE THE MONEY GOES? $188 MM 62.6% Instruction ($112MM) 10.6% Instructional Student Support 8.5% Debt Service 8.4% Non-Instructional Support 6.5% Operations & Maintenance of Plant Services 2.0% Pupil Transportation 1.0% Student Activities 0.4% Community Services 45 EXPENSES BY CATEGORY 3.0% 3.0% 2.0% $ 188 MM Budget 5.0% 5.0% 5.0% 9.0% 25.0% 43.0% Salaries & Wages Benefits Professional Services Other Purchased Services Supplies Debt Service Other Property Services Equipment $127 MM or 68% Personnel Costs 46 23

24 SALARY & BENEFITS AFSCME 16% Non-Union 12% 560 FTE 124 FTE 910 FTE $ 127 MM Salary & Benefits LEA 72% 47 STAFFING LEVELS Central Office Building Leadership/Support Personnel Net-Cost Reductions of $11.3 MM Teachers Support Staff

25 FUND BALANCE HISTORY (GENERAL FUND) $25,000,000 $20,000,000 $15,000,000 $10,000, % of budget is recommended to maintain long-term fiscal stability $5,000,000 $- $(5,000,000) Unassigned Assigned Committed 49 NON-MANDATED PROGRAM PRE-KINDERGARTEN The K3/K4 Program, serving 408 children in 9 locations, provides pre-kindergarten education services to students who are determined, through a child selection process, to be at the greatest risk for future academic difficulty. The curriculum is comprehensive, with a strong focus on early literacy and math development, equipping students with the skills necessary for a successful transition to kindergarten. Other Program Facts Number of Students 408 Total Program Budget $3,844,614 Number of Staff Teaching Staff Support Staff Admin Staff Total Staff Salary & Benefit Totals $3,034,860 $60,700 Avg. Cost Per Employee $20,000 $15,000 $10,000 $5,000 $0 Cost Per Student Average vs. Program Average Cost/Student (All Programs) Pre-K Funding Information Pre-K Counts (State) Early Reading First (ERF) (Federal) Grant Funded 62% Grant Funded Local/State Funded 25

26 BUDGET FOCUS AREAS International Baccalaureate (IB) Program Social & Emotional Health Elementary Literacy Class Size Reduction College & Career Readiness Instructional Technology School Construction 51 KEY DECISIONS Fund Balance Decision To balance the budget To meet legal requirements To meet long-term strategy Act 1 Index Taxing Decision To minimize impact To maximize impact (potential legislation) Legislative Decision To plan for the Governor s proposal on funding To plan for the worst case scenario 52 26

27 KEY TAKEAWAYS Projected Starting Deficit $2.8 MM Act 1 Index 3.7% or $2.6 MM (Adjusted) 2.5% or $1.8 MM (Base) Board Resolution limiting a maximum tax increase to 3.7% 53 27