Superintendent s Program Review Report

Size: px

Start display at page:

Download "Superintendent s Program Review Report"

Roderick Waters
5 years ago
Views:

1 August 26, 2010 OVERVIEW: The forecast for the fiscal year has an increase in total expenditures of 3.00 percent and an increase in member town allocations of 5.11 percent (including 7.64 percent for Orange). In uncertain economic times, the taxpayers are not likely to support a budget with this level of additional funding. It is, therefore, prudent to plan strategies well in advance of the next budget development process to find cost savings and efficiencies. This is a continuation of our efforts to do more with less. During the past several years, the Superintendent of Schools and his administrative staff have found many ways to cut costs without adversely affecting the education of our students or operations of the District. These have helped hold down budget increases. The average increase for the most recent three fiscal years (including debt service) has been 1.60 percent compared to 6.72 percent for the prior three fiscal years. Variance Dollar Amount by Town Fiscal Year Adopted Budget Bethany Orange Woodbridge % ($ 47,791) $ 265,308 ($ 285,544) % (A) $273,077 $ 965,551 ($ 67,565) % $ 15,744 $ 484,934 ($ 17,353) % $582,312 $1,121,721 $ 647, % $775,951 $ 794,662 $ 742, % $663,275 $1,163,086 $1,046,712 Note A: -0.60% for educational programs The District s student population has increase by 72 students, or 3 percent, since At the same time, the number of full-time equivalent (FTE) employees has decreased by 2.4 positions. During this same time period, the educational program was enhanced by expanding the culinary program; increasing Theatre courses; adding Mandarin Chinese, science research, and video production courses; and redesigning several existing courses into advanced placement courses. Fiscal Year Employees Students (Budget) , , , , , ,459 Dated 08/26/2010 1

2 The District has remained true to the high quality of education expected by our member towns. There have been many student achievements in academics, arts and athletics, including State, regional and national honors. In addition, we successfully upgraded our middle schools and expanded our high school, including a state-of-the-art auditorium. Our budgets have been impacted by increased costs for debt service, contracted salaries and benefits, and special education. We have worked very hard to keep our budget increases as low as possible in these challenging economic times. The $75 million building project was completed on time and under budget. BUDGET BALANCERS: Before listing possible actions for further cost savings and efficiencies, it might be beneficial to update the Amity Finance Committee and Board of Education members, especially the newer ones, on some of the actions we have taken over the past several years to increase revenues (other than those raised by taxes) and reduce costs. Each of the actions below show the estimated dollars associated with it in boldface and shaded in yellow (e.g., $x,xxx). The amount shown is the savings for the fiscal year in which it was done unless otherwise noted. In some cases, the amount cannot be readily determined (e.g., additional interest earned by investing funds in the STIF account). REVENUES: $508,217: The building construction project ended with a balance, which was put into a Construction Sinking Debt Fund. These funds will be used to pay down the debt service. $845,000: The audit report of the school construction grant (dated June 23, 2004) recommended that the State Department of Education reduce the District s grant by $2,563,078. The Superintendent of Schools hired The S.L.A.M. Collaborative to review this information with the Office of Internal Audit. The final result was a reduction of the grant impact by $844,541 from $2,563,078 to $1,718,537. As a result, the District received more in building renovation grants. $248,000: The former administration had established an encumbrance in the amount of $248, for a possible settlement of a dispute with Xerox Corporation. The Superintendent of Schools and Director of Finance and Administration negotiated a solution, which resulted in the full encumbrance being made available. The funds were put in the Reserve for Capital and Nonrecurring Expenditures and were used to purchase four mobile laptop laboratories ($131,000) and maintenance truck ($20,000), make field improvements at Orange Middle School ($64,000), and do a feasibility study of an artificial turf field for Stadium Field ($20,000). Dated 08/26/2010 2

3 $187,000: Energy efficient equipment was installed during the construction project. The District sought and obtained rebates from the electric companies. $17,000: Parking income was doubled by increasing the student fee from $50 to $100 for parking spaces. $18,000: A new Building and Grounds Usage Policy was developed and implemented, which generated additional rental income. $5,581: We have actively pursued reimbursements. For example, the District applied for, and was granted, snow removal assistance for costs incurred during the snowstorm and blizzard conditions of February 11-12, $26,000: A New Haven pastor and his elderly relative were charged with conspiring to illegally send the pastor s children to Amity Regional High School. Amity aggressively pursued this case which resulted in a $26,000 settlement. This was reported in a June 4, 2010 article in the New Haven Register. The Board of Education established the OPEB Trust in January 2007 and funded it with the use of some surplus funds generated by cost savings. The Actuarial Valuation Report as of July 1, 2005 showed a non-funded plan had unfunded liabilities of $11,341,116 compared to a funded plan of $6,871,901. Thus, the taxpayers will save approximately $4.5 million over time. The cash management process was greatly improved and available funds have been invested in the State Treasurer s Investment Fund (STIF) at a higher interest rate than what we had been receiving from the bank we use for our General Fund. At one point, the interest rate spread was almost 3.00 percent. Close scrutiny of expenditures helped generate surplus funds, which in turn were used to help offset some of the tax impact to the member towns by designating some of the funds for future budgets and returning over $3.4 million to the member towns over the past seven years. Dated 08/26/2010 3

4 PERSONNEL: $121,000: In , the Department Coordinator positions were replaced by Department Chairs at the Amity High School at lower salaries. Furthermore, the teaching load for the Department Chairs was increased from 2 to 3 courses, or the equivalent of 1.4 full-time equivalent positions. The proactive action to reduce the number of administrators in the district from 20 to 14 was the primary reason for Amity being selected as one of 21 benchmark districts identified as fully efficient by UCONN publication, Connecticut Economy. $385,000 Plus $60,000 of Benefits: The Board of Education offered twelve teachers a voluntary retirement incentive plan (VRIP). Four of these positions will be eliminated and the other eight positions will be filled in with teachers at a lower salary than the teachers who retire through the VRIP. In addition, one guidance position at the High School will be eliminated. $52,000 Plus $25,000 of Benefits: A comprehensive custodial workload study was done. We then implemented new custodial protocols and schedules with new equipment (e.g., automatic scrubbers) in the spring of As a result, one full-time custodian position was eliminated and another full-time position was reduced to a part-time position. This resulted in a much higher quality of work with a smaller staff. Most teachers, who retired or resigned, were replaced at a lower salary level, which provided a turnover savings. A custodial substitute program has been implemented. We have hired temporary workers to fill in for absent custodians, which has reduced overtime costs. BENEFITS: $57,000: Workers compensation insurance budget was based on preliminary estimates from CIRMA, our insurance carrier, in December The insurance was put out to bid in June 2007 and the bid price was significantly under budget. This had not been bid for several years. $67,000: The District s workers compensation loss ratio has been greatly improved by the introduction of a Return to Work Program in which employees on a leave of absence from their duties as a result of a work-related illness or injury may be allowed to return to work under a temporary alternative duty program (i.e., light duty ) if permitted by their physician. In addition, a comprehensive safety program was put into practice. Consequently, the loss ratio went from 290 percent in fiscal year to an average of 9 percent over the past five years. Premiums have decreased from Dated 08/26/2010 4

5 Fiscal Year Expense $115, $173, $172, $168, $198, $208,750 $67,000: By using surplus funds (generated through the Superintendent s scrutiny of expenditures, proactive search for cost savings, and other causes), the OPEB Trust has been fully funded with the employer recommended contribution since its inception. The net gain to-date (as of March 31, 2010) has helped reduce the budgeted contribution (i.e., taxpayer funding). $58,000: For the Pension Plan, the Board of Education adopted a five-year asset smoothing method, as many other school districts use, which spreads out the effect of investment gains and losses over a five-year period. $412,000: We worked with our insurance consultant to find ways to hold down the premium rate increases. Our five-year average premium rate was 5.1 percent higher compared to the prior three-year average increase of 19.6 percent. Using actual premiums for medical and dental insurance, the differential cost between 5.1 percent and 19.6 percent is about $412,000. Fiscal Year Pct. Chg % % % % % % % % This was accomplished primarily through the implementation of lower-costing Health Savings Accounts as the platform plan ; a competitive review process which encouraged Anthem to take a harder look at their pricing; and raised employees premium shares which probably had a positive effect on lowering the District s claim experience. In addition, employees premium share was increased. Dated 08/26/2010 5

6 PURCHASED SERVICES: $15,000: Data processing expenses were reduced by re-negotiating a contract extension for the MUNIS financial reporting system. $7,000: A price reduction in the MUNIS Financial Reporting System contract was negotiated by eliminating the license for the Fixed Assets and Application Tracking applications, which had not been used. $5,000: Training costs for the MUNIS Financial Reporting System was reduced by using webinars and in-house training rather than paying a consultant to travel from Maine where the company is located. $34,000: The District contracted with American School for the Deaf to provide services to our hearing impaired students. This has provided excellent services and has resulted in savings. $6,000: The District s Liability-Automobile-Property (LAP) insurance coverage was put out to bid, and the bid price was significantly lower than the quote used by the current carrier to prepare the budget. $38,000: Telephone expenses were reduced due to a reduction in the number of Centralink 3100 lines and network access paths as part of the installation of a new telephone system in $17,000: The AT&T T1 lines at each school had been used for remote access and redundancy. We had used the CEN network for almost two years, free of charge, and the system had been very reliable and stable. The T1 lines had been active but basically not used. Our Technology Department was comfortable deactivating the T1 lines at a monthly savings of $1,700. $31,000: We studied our transportation structure and worked out a cooperative agreement with our member towns to equalize the costs of busses which are shared with the elementary school districts. In , we received funds which were recorded as transportation income. $80,000: Legal expenditures were reduced by favorably resolving lawsuits (or potential litigation) related to indoor air quality complaints, Xerox copier contract, challenged employee terminations, and other matters. In addition, we moved our legal work for special education to a second firm with more experience and lower hourly rates. Dated 08/26/2010 6

7 $34,000: The bus contract with the transportation owner-operators was modified so there was no increase in (rather than the 3 percent in the prior contract). $54,000: Written grants in technology services allowed the District to receive funds for technology training and the use of trained in-house presenters also reduced professional development costs. A records management program was implemented and the records room was organized. This allowed us to move documents, which had been stored in a leased storage facility at $110 per month. Prices for field trips, athletic trips and special education trips were negotiated with the transportation owner-operators at a lower price than had previously been the case. There is a constant review of the school district s out-of-district placement list of potential students to return to Amity and we are using our Speech / Language Pathologists to provide some services instead of hiring another tutor. DEBT SERVICE: $1,485,000: The District s refunding of $2,690,000 of General Obligation Refunding Bonds on November 30, 2005 netted total savings of $63,957 over a 13 year period. The District s refunding of $27,480,000 of General Obligation Refunding Bonds on April 29, 2009 netted total savings of $1,160,699 over a 16 year period. On March 23, 2010, the District did a refunding of $8,695,000 of General Obligation Refunding Bonds, which provided a net savings of $260,205 through $6,145,000: There have been major improvements in the Finance Department s personnel and operations. Moody s Investor Services noted the district s well-managed financial position characterized by prudent management strategies and sound relationships with member towns The primary reason for the construction project being significantly under budget is the lower interest rates, in part due to timing but also the district s and member town s high bond ratings. The actual total debt service is $75,480,482 compared to the original budget presented to the District s taxpayers in 2008 of $81,625,610. The net realized savings is $6,145,128. SUPPLIES (INCLUDING UTILITIES): $42,000: The District is participating in United Illuminating Load Response program. The credits are applied to the monthly utility invoices. Dated 08/26/2010 7

8 $50,000: The District s Technology Coordinator wrote a program to automatically shut down the District s computers each day at 5:00 p.m. This keeps the computers from running all day and using energy unnecessarily. $116,000: A long list of energy conservation measures have been implemented over the past few years, including ensuring the new energy star equipment is operating at peak efficiency; installing energy efficient equipment during construction; performing preventive maintenance so equipment continues to operate as designed and as energy efficiently as possible; installing meters on our cooling tower loop and the irrigation system to monitor usage of those systems and obtain a credit on our sewer charges; and so forth. $407,000: The District joined an electricity consortium for supply with over 100 other school districts. The price per kilowatt hour was significantly less than what United Illuminating and Connecticut Light and Power were charging. $56,000: The number of gallons of heating oil was reduced by about 29,000 gallons primarily due to lowering the thermostat settings from 70 to 68 degrees during the heating season. $10,000: Most of the envelopes, forms, and other printed materials were done by the same vendor. We started to bid this work and the costs were greatly reduced. $8,000: The High School Teacher Handbook and Program of Studies were put on the school website rather than print these documents. $3,000: The direct deposit and purchase order forms are now sent out electronically to employees and vendors, which has eliminated the need to purchase these forms. $16,000: Employees are encouraged to print off the copier machines, which has reduced the amount of toner cartridges purchased. $5,000: The copiers have been set to print in the double-sided mode (employees can reset it to single sided when necessary). This has saved on paper costs. $11,000: The cafeteria program was switched from Sodexho to Chartwells. We worked hard to improve the operations so that there is a high quality of service and food and a reasonable amount of profits are generated. With the Cafeteria Fund profitable, the repairs and maintenance are being charged to the food service program rather than the Board of Education budget. Dated 08/26/2010 8

9 $10,000: The Athletic Department no longer purchases personal practice clothing or warm up uniforms for some teams. $4,000: A tube puncher was purchased so our in-house maintenance employee can now clean the tube bundles on the chillers rather than contracting this work to an outside vendor. This is an annual savings of about $4,000. An indoor air quality monitor was purchased. We are constantly performing tests every time a complaint is made. This has saved the District about $1,300 per occurrence. The Facilities Director identified a roof warranty problem at Amity High School from the construction project. The new roof had been under warranty for 15 years instead of the required 20 years. This has been corrected. If this had not been noticed, the District would not have received reimbursement for the roof and would have been responsible for repairs after 15 years. EQUIPMENT: $9,000: Since installing the student terminal server, the NComputers have been working out very well. In some cases, we have found they are even better than the desktop PC s, because they use the processing power of the server rather than the local CPU and memory. The cost of the NComputer, including mouse, keyboard and 17 flat panel display is $354, or approximately one-third the cost of a laptop used in the COWs. By adding NComputers, we eliminate the cost of licenses for Microsoft Office and Windows operating system, since all the applications are installed on the terminal server. We also approach the goal of 1 to 1 student to computer ratio. Replacement cost for damaged NComputers is less than $200 each. We will be purchasing 30 NComputers in next year s budget. DUES AND FEES: $16,000: The Board of Education will not remain a member of Connecticut Association of Boards of Education (CABE). OTHER: Bidding of many items, including those below the Board Policy threshold of $10,000, has resulted in lower prices for goods and services. There had been very little bidding prior to July Dated 08/26/2010 9

East Hampton Public Schools - Operating Budget Overview Fiscal Year

East Hampton Public Schools - Operating Budget Overview Fiscal Year Number Description and Budget Assumptions 2015-16 Actual 2016-17 Budget 5111 Certified Salaries: This account represents the cost of salaries for 162 FTE certified teachers with 158 FTE in the general