Telling Our Story. Celebrations, Challenges, and Choices

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1 Telling Our Story Celebrations, Challenges, and Choices

2 Telling Our Story Celebrations, Challenges, and Choices

3 Telling Our Story: Robbinsdale is Among the most highly regarded school systems in Minnesota. Home to the best & brightest students and staff. A major influencer in positive home property values. Not top heavy with administrators; in fact, very lean compared with county and state school districts.

4 Telling Our Story: Celebrations Community support has always been vital to the success of our schools and our district. Community support of the 2001 referendum led to improved teaching & learning, technology and safety and security

5 Telling Our Story: Celebrations 2007 Community Survey: 65% said Robbinsdale Area Schools is headed in the right direction. 65% gave us an A or B as a grade (National average is 49%) 67% agree the district is spending local tax dollars wisely 79% believe the district is safe and provides an orderly environment 77% believe the district provides adequate technology for kids 72% are personally pleased with the academic achievement of kids 76% believe information from the district is timely & informative Solid base of support for Robbinsdale Area Schools to seek additional revenue sources: 64% favor an increase in the current operating levy

6 Telling Our Story Celebrations, Challenges, and Choices

7 Telling Our Story: Challenges Despite wonderful support of our community, we are facing financial challenges. The Challenge: Meeting high expectations for our children with inadequate resources. Inadequate state funding for education & declining enrollment impacts our ability to maintain community expectations for schools.

8 Telling Our Story: Challenges District s fund balance has provided supplemental revenue for the last two years. Fund balance is no longer available, forcing us to make budget reductions this year and possibly future years. We reduced our budget by $4.5 million, or 3.4% of the district s general fund budget. Reductions were made in or by: Increasing class sizes (first time since mid-1990s) Administrative leadership staff Support staff (custodians & teacher s aides) Delaying school bus purchases

9 Telling Our Story: Challenges Fund Balance (General & Transportation)

10 Telling Our Story: Challenges We received help from the legislature in the way of state funding in 2007, but it continues to fall short of inflation or make-up for previous years of underfunding. Without additional revenues in future years, we are looking at reducing our budget by $5.0 million, and another $4.0 million in Maintaining the integrity of our service to students becomes more difficult. The gap between increases in expenditures and revenues continue to grow.

11 General Fund Budget Projections Actual Revised Budget Projected Budget Projected Budget Projected Budget Total Revenue 125,301, ,440, ,902, ,285, ,044,299 Total Expenditures 129,000, ,412, ,364, ,835, ,816,549 Revenues Over (Under) Expenditures (3,699,849) (4,971,376) (1,462,497) (3,550,673) (2,772,250) Budget Cut - - $ 4,500,000 $ 5,000,000 $ 4,000,000 Beginning Fund Balance 13,590,163 9,890,314 4,918,939 3,456,442 4,905,768 Ending Fund Balance 9,890,314 4,918,939 3,456,442 4,905,768 6,133,519 Add Back Budget Cut (5,000,000) (4,000,000) Add Additional Referendum Authority $ 9,654,394 $ 9,654,394 Ending Fund Balance w/ new Referendum $ 9,560,162 $ 11,787,913

12 Telling Our Story: Challenges Basic Formula Allowance (per pupil unit*) Lags Behind Inflation Sources: Minnesota House Research, AMSD - March 2006; Inflation rates from IPD more accurate inflation measure for state & local govt. * Per pupil defined as WADM

13 Telling Our Story: Challenges Basic Formula Allowance (Dist. Revenue) Lags Behind Inflation $11 million shortfall Sources: Minnesota House Research, AMSD - March 2006; Inflation rates from IPD more accurate inflation measure for state & local govt. * Per pupil times district WADM

14 Telling Our Story: Challenges Another major factor is the failure of the federal government to deliver on its promise to fund 40 percent of special education costs We are absolutely committed to appropriate, highquality Special Education services for all district students who need them

15 Telling Our Story: Challenges Special Education: Cross Subsidy (per pupil*) Source: Minnesota Dept of Education; * Per Pupil defined as WADM.

16 Telling Our Story: Challenges Special Education: Cross Subsidy Amount Source: Minnesota Dept of Education;

17 $ Telling Our Story: Challenges Operating Referenda Revenue (Per Pupil*) Source: Minnesota Dept of Education; * Per Pupil defined as RMCPU.

18 Telling Our Story: Challenges We are working with budget realities, many of which are beyond our control. We must be financially prudent & prepared for the likelihood that we may not have additional revenues to meet our operating needs. Additional budget reduction scenarios have been developed with input from staff, parents and communities.

19 Telling Our Story Celebrations, Challenges, and Choices

20 We have tough choices OPTION 1: Cut Staff and programs Reduction Target for $5 million Administration and General Operations Teaching & Learning $1.45 million $3.55 million Reductions include: Close an elementary school and redraw boundaries Eliminate elementary art & gifted (Cut 8 teachers) Increase class size districtwide (Cut 28 teachers) Eliminate middle school activities and athletics Increase high school activities and athletics fees Eliminate support staff, transportation and administrative positions (Cut at least 12 positions)

21 We have tough choices

22 We have tough choices

23 We have tough choices OPTION 2: Operating Levy Referendum School Board approved a resolution on July 16 to seek voter approval this fall for an operating tax levy increase. The proposed referendum is for $9.7 million, which will increase the district s current per student funding from $ to $1,472.83, an additional $

24 Operating Levy Referendum The effect of the new operating levy, if approved, is approximately $19 more per month for the average home value of $240,000 in the district. If approved, the money will be invested in teachers and staff Reduce and maintain class size Sustain current school programs Maintain our standing as a district of excellence Support our nationally recognized fine arts programs Support valuable after-school activities

25 Operating Levy Referendum Tax Impact Referendum Market Value Pay 2008 Revoked Referendum Authorization Pay 2008 Proposed New Referendum Authorization Annual Net Change Monthly Net Change $ 50,000 $ 59 $ 108 $ 49 $ 4 75, , , , , , , , , , , , , , , , , ,000,000 1,181 2,

26 Operating Levy Referendum Robbinsdale Area Schools joins a host of metro school districts seeking voter support this fall: Anoka-Hennepin Bloomington Brooklyn Center Burnsville Edina Elk River Osseo Stillwater South Washington County White Bear Lake

27 Telling Our Story Celebrations, Challenges, and Choices The Next Steps

28 Telling Our Story: Next Steps October-November District staff provide factual information about the district s current financial condition and future needs. (Cannot advocate for or against referendum.) November 6, 2007 Election Day for operating tax levy referendum.

29 Telling Our Story: Next Steps How you can help Stay engaged in the process. Read updates in district publications. Seek additional information from other sources.

30 Thank you for your involvement and support!