UNOFFICIAL MINUTES MUSCATINE SCHOOL BOARD OF EDUCATION REGULAR MEETING March 18, President Jones welcomed visitors and media representatives.
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1 UNOFFICIAL MINUTES MUSCATINE SCHOOL BOARD OF EDUCATION REGULAR MEETING March 18, 2013 The Board of Education of the Muscatine Community School District, in the County of Muscatine, State of Iowa, met in regular session on Monday, March 18, 2013 at 7:00 p.m. at City Hall. President Penny Jones called the meeting to order. Directors Tim Bower, Tammi Drawbaugh, Brenda Garcia- Van Auken, Nathan Mather, and Mary Wildermuth were present. Director Dennis Fox was present via conference phone from Cleveland, Ohio. Also present was Superintendent Bill Decker and Director of Finance Jean Garner. The board recited the Pledge of Allegiance. President Jones welcomed visitors and media representatives. Jason Wester and Kristyn Manjoine, representing Race for the Schools Committee, spoke regarding the Race for the Schools 5K race and one mile fun run to be held on May 4. The idea of the race is to bring the community together to support the schools and also to promote a healthy lifestyle. The race starts and ends at the high school. The 5K race begins at 8 a.m. and the fun run begins at 9 a.m. Entry forms will be available at the end of the week and on the Get Me Registered website. Proceeds will generate support for the Muscatine Schools Foundation. The committee would like to turn this into an annual event. People can like Race for the Schools on Facebook to get up- to- the- date information. Anna Masengarb, Miss Muscatine Outstanding Teen and student ambassador for the Save the Music Foundation, spoke regarding March is Music in Schools Month. She stated that she has collaborated with the Muscatine Journal to create an essay contest so that area students can voice how music is important to them. She asked that during budgeting the board consider continued funding for music education. She noted that she wants to help with funding by creating a Showcase of Talent with area professionals and student musicians. Student auditions would be held in early April with plans of having the showcase on Mother s Day weekend. She asked for permission to contact music educators and for the board s support for the Showcase of Talent. Superintendent Decker noted that the board will definitely respond to her request and noted that the board through consensus will decide and then he will let her know. He stated that the board is trying to live within their own rules of not responding during Citizen s Speak but that he does not see that this would be a problem. Sarah Lothspeich, Adam Hutton, and Ali Moss reported on student council activities. Senior Survivor has been the main focus for student council for the past month. This year seven charities will benefit from the $27, that was raised through the competition. Those charities are: the Humane Society, the Erika Kate Foundation, Make- A- Wish, Special Olympics, Relay for Life Miles for Millie, Miracles Can Happen Boys Ranch, and the Salvation Army. Each charity will receive at least $2,500 with one charity receiving over $8,200. It was 100 hours well spent. The next focus for student council will be Leadership Week and the leadership project of mentoring within reading where council members volunteer to read with area elementary schools. They are also planning Leadership Lights and prom. The theme for this year s prom is A Night at the Oscars.
2 President Jones congratulated them on their Senior Survivor accomplishment of raising $27,000 for various charities. Superintendent Decker commented that he was fortunate to attend the Lead Conference with members of the student council. He stated that the MHS student council is a phenomenal group, and we are fortunate to have them as our student leaders. He thanked them for their hard work. The planning minutes were removed from the consent agenda and will be approved at the board s next regular meeting to allow for revisions to be made. A motion was made by Director Bower and seconded by Director Garcia- Van Auken to approve the consent agenda which includes the following: the minutes of the February 25, 2013 regular meeting; the renewal of the sharing agreement with L&M for swimming and tennis; bills and claims against the district dated March 18, 2013; the personnel recommendations of: the leave of absence request of Sarah Wilson for the school year, the early retirement of Vicki Lawhead, and the schedule C hires of Tim Armstrong as WMS track coach and Stephanie Barrios as high school assistant girls soccer coach; and the Central Middle School Aquarium Committee field trip to Henry Doorly Zoo in Omaha, Nebraska on April 13-14, 2013 as submitted by Justin Johnson. A motion was made by Director Mather and seconded by Director Wildermuth to approve the following policies: Definition of Certificated Personnel Discipline of Students Responsibilities and Duties Evaluation of Non- Certificated Personnel Salary Schedules Discipline of Students by Non- Certified Personnel Food Nutrition Workers/Bakers/Cooks Administrative Support/Secretarial/Clerical/Aide/Paraprofessionals Non- Resident Tuition Search and Seizure with Administrative Procedures Bidding Procedures for Public Improvements A motion was made by Director Bower and seconded by Director Fox to open the public hearing for the purpose of amending the school budget. Director of Finance Jean Garner noted that the notification of the pubic hearing was published on March 6, She further noted that there were no written or oral comments received. A motion was made by Director Drawbaugh and seconded by Director Garcia- Van Auken to close the public hearing.
3 A motion was made by Director Bower and seconded by Director Drawbaugh to approve the budget amendment for Director Mather asked if pages 36 & 37 are related to the budget amendment. Mrs. Garner stated that page 36 is the original budget that was adopted in 2012 and page 37 is the re- estimate for 2013 showing an increase on line 35A. Director Mather asked regarding the projected change to the 2014 budget on page 37 line 35a and if that the number is what we expect as it is $2.2 million and this seems too low. Mrs. Garner stated that these are preliminary numbers for FY14 as the district is not done budgeting for FY14. She noted that the form that the board has in front of them is really just for the re- estimate of FY13. The number only represents what the AEA flow- through dollars would be based on and does not have all the other costs entered for FY14 as of this time. Director Mather felt that the AEA amount increased a lot. Superintendent Decker noted that this is a flow- through funding mechanism by state code on how the AEA is funded and is dependent on student enrollment and allowable growth. He stated that it is basically automatic but it looks like it is something that is in the district s budget. He noted that this is how the state shows how much they fund the AEA, and basically the amount from the state is sent to the district and then onto our AEA. Superintendent Decker reviewed the KeBecca Education Services contract. He noted that the board had received the information previously in board notes. He shared that this has been a long process of evaluation of how we are serving students and at this point both Ms. Collinson and his recommendation is for the district to make a change in how it serves students. This needs to be approved for the district to make that change. A motion was made by Director Bower and seconded by Director Wildermuth to not renew the district s current contract with Family Resources that provides services to our Level III Behavioral Disordered students. Director Mather asked regarding the cost savings. Superintendent Decker stated that it is not significant but more of an increase of services and providing a better program and more responsiveness to our student s needs. He noted that cost- wise, it is fairly comparable. Director of Special Services Jan Collinson noted the services that they are providing are different and a little bit cheaper. Director Garcia- Van Auken asked where the classroom for this will be.
4 Mrs. Collinson stated that it will be housed at the former Garfield Elementary where East Campus is now located. The program will be take one wing. Superintendent Decker noted that East Campus is the site that is being proposed at this time; however if the district can find a better site along the way, it will then consider that as well. A motion was made by Director Bower and seconded by Director Mather to approve the KeBecca Education Services contract. Director Mather asked if the contract is for one year. Mrs. Collinson stated that it is. Director Garcia- Van Auken asked if it is the responsibility of the district to maintain the classroom. Mrs. Collinson stated that the district provides the custodial service, phone service, but that KeBecca provides the curriculum. Director Garcia- Van Auken asked if this is paid for out of the general fund because when she called Family Resources there was quite a budget. Mrs. Collinson stated that the initial cost to the district would be a time- out room because it is new construction. She further noted that there is a difference in the way their building is set up and because of this was certain Family Resources costs were more significant. Superintendent Decker noted that if it is extremely more costly, then the district will need to re- evaluate the program. The board heard a first reading on the following policies: Attendance Policies with Administrative Procedures Student Activity Program Student Records with Administrative Procedures Requirements for Graduation Conditions of Instruction Class Size with Administrative Procedures Curriculum Adoption and Evaluation Elementary Curriculum Health Education Planning the Budget Inventory
5 President Jones pointed out that policy Student Records with Administrative Procedures was last reviewed in February, She noted that a policy booster came out in January and addresses foster care and that is why the policy is being revised. Director of Special Programs Jan Collinson presented the District Developed Service Delivery Plan for the board s review. She stated that the plan has been recently approved by the AEA and will come back for approval at the board s April 8 th meeting. She noted that the plan was available for public comment for 30 days and no comments were received. Superintendent Decker shared that he anticipates that the Plan will be presented to the board at either the next meeting or the following meeting depending on when bids come back. He shared that Mr. Crowder and Mr. Miller have talked to every building and are accumulating their requests. Once the requests are received, Mr. Crowder, Mr. Miller, and himself will meet to determine priorities especially in the areas of school safety and security. Proposed School Fees for were shared with the board. Director of Finance Jean Garner proposed no changes in the instructional material fees, instrumental fees, or activity passes. She noted that there is a $6 increase for the high school yearbook because the actual cost of the yearbook went up. She stated that the district is asking for an increase in food service prices. She noted that according to equity in the school lunch prices, the price for breakfast should be $1.58 and prices for student lunches should be $2.59. Currently the district is charging $1.20 for breakfast and is proposing increasing the amount by five cents to $1.25. She stated that adult breakfast price is set by the state. The district currently charges $2.00 for adult breakfast, and the state says that the charge for breakfast should be $2.20, so the district is proposing a 20 cent increase on the adult breakfast prices. At the elementary level, the district is currently charging $1.75 for school lunch and the price should be $2.59. The district is proposing a $0.25 increase to $2.00. Middle school and high school lunches currently cost $2.00, and this will stay the same for next year. Adult lunches will be increased by five cents from $3.15 to $3.20 according to state guidelines. Milk and juice amounts will also increase by $0.05. She stated that the lunch price should eventually be $2.59, and there should not be a differentiation between elementary, middle school, and high school. She noted that she thought this year would be a good time to have all the lunch prices the same, and then will go forward from there. She stated that because the district is not at the required lunch price amount, the district will need to increase the price each year by at least $0.10 until it gets to the $2.59 price. She noted that the dilemma was how much should the increase be. She stated that school lunch participation has gone down from last year and debated if the prices were increased would participation go down more. She stated that she is not blaming the Healthy Kids Act. President Jones asked if the lower participation is because of price or the Healthy Kids Act. Food Service Supervisor Alisha Eggers stated that part of the problem at the high school is because the students cannot have french fries like they are used to; however, there are a variety of things available to them. She stated that the meal requirements stated that they have to take a fruit and a vegetable. She noted that there has been some changes in the amount of food that can be served. At the beginning of the school year, students were allowed to only take two sides but now they can take four sides. She stated that there are some possible more changes and will be working on merchandising to increase participation. She stated that food service is down 300 meals at the high school daily. Director Mather asked how the drop in participation has affected finances.
6 Mrs. Garner said that it has affected the nutrition account hugely. From last year, the nutrition fund is down $114,000. Director Mather asked if this causes impact elsewhere. Mrs. Eggers noted that the foods that are being served are more labor intensive and therefore, labor costs have gone up 3% along with the cost of food which has also increased by 3%. She stated that this has been the most difficult year in the 14 years that she has worked in food service. Superintendent Decker noted that if you are in a private business and the number of customers drops, you would try to improve your product and lower your prices. The district is mandated in what foods it can serve and the prices, so improving the product is not possible nor is lowering the price. He stated that this is a tough challenge but that the food service department is doing as good as job as they can do with the mandates that have been passed on. Director Drawbaugh asked if $2.00 covers the expenses. Mrs. Eggers stated that she is completing a certification process in order to receive an additional six cents per meal, and if this is received, it will offset the cost and will cover the expenses. She stated that it is still important that parents and students are still receiving a good value and a nutritious meal. Superintendent Decker provided a verbal report regarding the budget preview. He shared that it is important for the board and the public to know what the district s budget scenario is as far as the impact the legislature s educational funding decisions have on the district. A month ago the board passed a resolution asking the legislature to approve 4 percent allowable growth. This is an important piece of legislature. Even the 4 percent amount will not allow us to completely maintain how we currently serve students. This is something we knew about and is why it was extremely important that the board and community put the ISL in place. Without the ISL, extremely deep cuts would have been necessary. Even with 4% allowable growth the reduction needed to preserve the amount of spending authority in reserve could be somewhere between $900,000 to $1,000,000. If the allowable growth percentage reverts to zero percent, the district would be looking at $3 million or more. We are not alone in this situation. Other districts such as Fort Dodge, Cedar Rapids, Iowa City, Davenport, Wapello and Columbus Junction are up against the same thing. The state funding of education over the last four years is the lowest four- year amount ever. It isn t a revenue issue. We can raise a sufficient amount of revenue without increasing the levy. Because the state has appropriated less money or no money over the last four years, it has had a negative effect on our spending authority and continues to compound negatively. To be clear, wherever allowable growth is set, there is no impact on taxes. The tax rate will be a little lower or significantly lower based on other funding mechanisms from the state. To reiterate: this isn t a levy issue or local tax rate levy issue and statewide, the 4% allowable growth would cost taxpayers much less than a zero percent allowable growth. What we are talking about is a spending authority issue that could make a significant change in our district via employment. It is his hope that the board will promote this legislatively and the public will also promote 4% allowable growth as it puts our students in the best spot possible. Director Mather asked if the district is at the 101% budget guarantee this year.
7 Mrs. Garner noted that if allowable growth is set at 0 and 1%, the district will be at 101% budget guarantee, but at 2%, the district will not. Director Mather asked if allowable growth is not set by April 15 when the budget has to be set, where would that leave the district. Superintendent Decker stated that the district will have to certify the budget at the most optimistic place it can and then will have to take action in a pessimistic way, to cover the worst case scenario. This means the district will be forced to look at personnel levels. The district needs to certify the budget in a way that it allows for something positive but at the same time will not box ourselves in. Director Mather asked that at the worst, will the district be looking at the 101% budget guarantee. Mrs. Garner replied yes though in reality the more likely possibility is that allowable growth will be set between 2% and 4%. She shared that the budget is a two- step process. The first step is certifying the levy rate. To put things in perspective, she shared that a 16% allowable growth percentage would be the national average in spending. Superintendent Decker noted that of the $800,000 in reserve at the state level, ISFIS has estimated that $600,000 is dollars that have not been paid to local school districts or were not allocated at a reasonable level to education. He shared that the balances are there to take care of education and were put in the state coffers because they were not supporting education in last four years the way they have historically. There were four years in a row that where the average allowable growth percentage averages less than two percent. Chapter 20 is a state law. We are obligated to follow this process, and it drives 80% of district costs at annual increases of 3-4% and yet funding is less than 2%; this does not work out financially. As a property poor district, Muscatine will be hit first with it, especially with this being the first year of having the ISL. However, if the ISL had been in place for ten years, the budget projection would be a lot different. He noted that there are a lot of dynamics that puts us to be one of the districts that will take a hit financially first. He also noted that a dramatic change in funding is the only thing that will allow the board not to have the same kind of conversation and even more in the future. Mrs. Garner noted that she has to publish the budget no later than March 27 in order to hold the public hearing on April 8. Director Mather asked if we were to put a face on the $900,000 to $1,000,000 what would it look like and approximately how many personnel would this be. Superintendent Decker stated that he has looked at many different scenarios. He shared that because of early retirement, the district will gain some potential there; however, it probably is looking at reducing positions and other reductions in hours and that is with the 4% allowable growth.
8 Director Mather asked if the district were at the 101% budget guarantee would that then be $2.50 million in cuts. Superintendent Decker stated that is approximately correct and that he and his team have done some preliminary work in how to get to those levels. He stated that basically, the legislature holds this conversation in their hands, and it is not conducive to hold this type of conversation with the public until the district knows for certain what the legislature will do. However, for that conversation to take place, the deadline to issue employee pink slips is April 30. If nothing changes between now and April 20, the district would have to take action, and administration would have to look at reducing more positions. Director Bower noted that board members have an opportunity to reach out to legislators in Des Moines soon. Mrs. Garner shared that she would like to have a conversation with the board regarding the budget. Superintendent Decker stated that he will generate a poll to see when it might be appropriate to meet either on the 25th or 26th for a special meeting and talk about the scenario that would exist at that point. Director Mather asked if Mrs. Garner could develop a matrix showing a couple of different funding levels. Mrs. Garner said that she has one already in place. She noted that worst case scenario the levy rate would be lower than what it is now which is $ At zero percent allowable growth, the levy would lower to $ She noted that this would fluctuate if the PTER fund changes and also the ISL income surtax would change the scenario for the levy rate as well. Superintendent Decker stated that one of the things that is important for people to know is that if the district certifies the levy at $15.28, the PTER fund is currently estimated to make a $0.58 reduction. He noted that that s another piece that our public should be advocating for. He stated that the public needs to advocate for this and the 4% allowable growth because we are a property poor district. President Jones asked if a budget session with Margaret Buckton and Larry Sigel should now be planned. Superintendent Decker noted that he would try to contact them to see what their schedule looks like. A motion was made by Director Garcia Van Auken and seconded by Director Drawbaugh to adjourn the meeting. Time: 8:07 pm. Penny Jones, President Lisa Mosier, Secretary
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