Budget Forecast Report

Transcription

1 Budget Forecast Report By: Demond A. Means, Ed.D. Superintendent 10/25/2010 * Update includes change in French and German status. As of January 13, 2011

2 CITY OF MEQUON AND VILLAGE OF THIENSVILLE 5000 W. MEQUON ROAD MEQUON, WI PHONE (262) FAX (262) Demond A. Means, Ed.D., Superintendent Eric J. Dimmitt, Director of Curriculum, Instruction & Assessment Hughes B. George, Director of Pupil Services Gail M. Grieger, Director of Business Services October 15, Budget Forecast Every organization's aim is to develop a budget that reflects its goals, aspirations and vision. As a school district, we remain committed to ensuring the District's continued improvement, even in the face of a looming financial shortfall. It is with our eyes on the future that the administrative team presents these recommendations for budget reductions for the school year. As in past years, the board and administration face a number of very difficult budget decisions as a result of pending budget shortfall. Judicious budgeting and strategic cuts have saved educational programs in the past, but over the last three years the school district has had to make some difficult decisions to reduce personnel costs. These have included outsourcing custodial cleaning services, imposing salary freezes for support staff and administrators, and increasing employee contributions to health insurance costs. In short, our employees have made significant sacrifices to help the school district continue to provide outstanding academic, fine arts and athletic programs for our children. Looking at the budget situation and beyond, it is clear that we will need greater assistance to control costs. Our reduction plan calls for financial assistance from the school district's largest employee labor group, the teacher's union. Normally, the school district budgets a 3.8 percent total compensation package for the teachers. Starting next year, the school district will reduce the amount budgeted to 2.1 percent. If the union agreed to a salary freeze, the school district would save over $400,000, cutting the district's three year budget shortfall by 13%. This would save educational programming, ensure the continued improvement of our great district and reduce the need for teacher layoffs. As a school district, we are no longer in a position to simply provide annual compensation increases to our employees. At this point, over 80% of the school district's costs are related to labor, and the largest labor group is the teacher's union. It would be a glaring omission in our budgeting process if we did not request that teachers make a significant demonstration of support for the Mequon-Thiensville School District and its students through compensation concessions.

3 The simple fact is that in these difficult economic times, we will need the cooperation of the teacher's union if we hope to help stabilize our organization. Thank you taking time to review our three-year reduction plan. We hope that you understand that our request for labor cost relief from the teacher's union is not a slight to our great teachers, but a means of protecting programming for children. Thank you! Sincerely, Demond A. Means, Ed.D. Superintendent 70k41v*%Ae_--

4 BOARD OF EDUCATION EXECUTIVE SUMMARY Subject: Budget Forecast Attachments: Revised 3-year budget plan (as October 2010) Category: q Action q Discussion q Information Date for Consideration: November 4, 2010 November 29, 2010 February 21, 2011 Background The Mequon-Thiensville School District administrative team has prepared a three-year budget reduction plan for The reduction plan has been developed under the assumption that the school district will face a $3,100,000 budget shortfall over the next three years. This budget shortfall could potentially increase depending on the status of the state bi-annual budget, which will be developed by the new Governor of Wisconsin and a new state assembly and state senate. It is well known that the new governor and legislature will be facing a $2,700,000,000 budget shortfall. The administrative team is recommending the reduction of specific programs in the school district instead of incrementally reducing classroom teachers. These programs include: Elementary Guidance French and German Middle School/High School We have also developed two different models of our three-year plan. One plan (Plan A) is built under the assumption that the teacher's union provides concessions and the Department of Public Instruction grants school districts the flexibility to reduce the number of teaching days. The second plan (Plan B) is built under the assumption that the teacher's union does not provide concessions in their compensation packages. It has become clear to the administrative team that without significant concessions from the largest employee group in the school district, it will be extremely difficult to retain the quality of programming and offerings for which Mequon-Thiensville has become renowned.

5 Next Steps The Board of Education will conduct a community listening session on Thursday, November 4, 2010 concerning the proposed administrative budget recommendations. A full review of the action steps in creating the budget is below.. \(to ' 1 4 Presentation of the budget reductions as recommended by the administrative team. Board of Education will debrief and review the community feedback. Develop a budget plan that includes community input. Means Board of Education Board of Education, Grieger and Means, :I i;y. Presentation scheduled for November 4, Board of Education Retreat is scheduled for November 29, Presentation of the revised budget plan is scheduled for February 21, Submitted By: Demond Means Board of Education Action: q O q Approve Reject Research/Report Back

6 Position/Program MEQUON-THIENSVILLE SCHOOL DISTRICT BUDGET SHORTFALL PROJECTION School Year - Projected Shortfall ($1,100,000) (Final amount to be determined after 3rd Friday Count Sept. 2011) PLAN A FTE Dollar Savings Use of Fund Balance from Reductions Contracted Janitorial Services (0% Vendor Increase) MTEA Contract Transportation Savings Due to Modification in School Times (Elementary and Middle School) Elimination of Summer Curricular MTSD Workshop & Extended Contracts $557,030 $51,500 $400,000 $140,000 $55,000 Total $1,203,530 Less: Estimated Deficit $1,100,000 (Budget Deficit)/Excess Reductions $103,530

7 BUDGET SHORTFALL PROJECTION School Year - Projected Shortfall ($1,000,000) (Final amount to be determined after 3rd Friday Count Sept. 2012) PLAN A Position/Program FTE Dollar Savings (Budget Deficit)/Excess Reductions from $103,530 MTEA Contract Settlement $400,000 Reduce Specialists Positions 2.00 $150,000 (Services Transferred to Curricular Generalists) Reduce Building and District Budgets by 5% $155,000 Reduction of Faculty TBD $318, Natural Reductions (Attrition and Declining Enrollment), then 2. Forced Reduction of Faculty * Start the phase out of French and German. Phase out to be completed by the SY Reduction in High School Pupil Services $80,000 Total $1,206,530 K-12 ELL Teacher $75,000 K-8 Secretaries to Full-Time -$60,000 Tota I -$135,000 Total $1,071,530 Less: Estimated Deficit $1,000,000 (Budget Deficit)/Excess Reductions $71,530 * See attached document

8 BUDGET SHORTFALL PROJECTION School Year - Projected Shortfall ($1,000,000) (Final amount to be determined after 3rd Friday Count Sept. 2013) PLAN A Position/Program FTE Dollar Savings (Budget Deficit)/Excess Reductions from $71,530 Reduction of Faculty $320, Natural Reductions (Attrition and Declining Enrollment), then 2. Forced Reduction of Faculty Eliminate Elementary Guidance 2.00 $150,000 Wavier from DPI to Reduce Instructional Days $400,000 Long-Term Debt Refinanced $72,000 Total $1,013,530 Less: Estimated Deficit $1,000,000 (Budget Deficit)/Excess Reductions $13,530

9 BUDGET SHORTFALL PROJECTION School Year - Projected Shortfall ($1,100,000) (Final amount to be determined after 3rd Friday Count Sept. 2011) PLAN B Position/Program FTE Dollar Savings Use of Fund Balance from Reductions $557,030 Contracted Janitorial Services (0% Vendor Increase) $51,500 Faculty Reductions: 1. Natural Reductions: (Attrition and Declining Enrollment), then 2. Forced Reduction of Faculty TBD $300,000 Transportation Savings Due to Modification in School Times (Elementary and Middle) $140,000 Reduction of Summer Curricular Development, MTSD Workshops & Extended Contracts $55,000 $23,000 - Summer Curriculum $23,000 - MTSD Workshops $9,000 - Reduction of IMC Specialists Total $1,103,530 Less: Estimated Deficit $1,100,000 (Budget Deficit)/Excess Reductions $3,530

10 BUDGET SHORTFALL PROJECTION School Year - Projected Shortfall ($1,000,000) (Final amount to be determined after 3rd Friday Count Sept. 2012) PLAN B Position/Program FTE Dollar Savings (Budget Deficit)/Excess Reductions from $3,530 Faculty Reductions: $596, Natural Reductions: (Attrition and Declining Enrollment), then 2. Forced Reduction of Faculty * Start the phase out of French and German Phase out to be completed the SY Eliminating Elementary Guidance Positions 2.00 $150,000 (Transfer Services to Elementary Teachers) Reduce Specialists Positions 2.00 $150,000 (Services Transferred to Curricular Generalists) Reduce Building and District-wide Budgets by 5% $155,000 Reduction in High School Pupil Services $80,000 Total $1,135,000 K-12 ELL Teacher $75,000 K-8 Secretaries to Full-Time -$60,000 Total -$135,000 Total $1,000,000 Less: Estimated Deficit $1,000,000 (Budget Deficit)/Excess Reductions $0 * See attached document

11 BUDGET SHORTFALL PROJECTION School Year - Projected Shortfall ($1,000,000) (Final amount to be determined after 3rd Friday Count Sept. 2013) PLAN B Position/Program Faculty Reductions: 1. Natural Reductions: (Attrition and Declining Enrollment), then 2. Forced Reduction of Faculty Example: K-5 Teachers to provide Art, Music and Physical Education Instruction FTE Dollar Savings $1,000,000 Long-Term Debt Refinanced $72,000 Total $1,072,000 Less: Estimated Deficit $1,000,000 (Budget Deficit)/Excess Reductions $72,000

12 CITY OF MEQUON AND VILLAGE OF THIENSVILLE 5000 W. MEQUON ROAD MEQUON, WI PHONE (262) FAX (262) Demond A. Means, Ed.D., Superintendent Eric J. Dimmitt, Director of Curriculum, Instruction & Assessment Hughes B. George, Director of Pupil Services Gail M. Grieger, Director of Business Services January 12, 2011 Dear Mequon-Thiensville School District, The purpose of this letter is to provide clarification regarding the proposed elimination of the French and German programs in the Mequon-Thiensville School District. In order to eliminate French and German by the school year (SY), the District will need to begin phasing out the programs starting in SY. The phase-out of French and German would start in the school year if the school board approves the administration's budget proposal. Starting with the SY all 7 th grade students would only have Spanish as a world language option, if the budget reduction proposal were approved by the Board of Education. In essence, the elimination of the French and German programs would start in the SY. The rest of the phase-out would include the following: School ei Impact or the phase ou Last Year of 8th Grade French and German; No 7th Grade French and German Last Year of French 1 and German 1 at Homestead No Middle School French or German Only French and German 2, 3, and 4 at Homestead French 3/4 and German 3/4 at Homestead French 4 and German 4 at Homestead (if necessary), * AP French and German will be made available to students. It is difficult to project how many students will pursue an AP track, hence the absence of AP on this potential phase out document. It was not our intent with this budget proposal to prevent current French and German students from completing their course of study. All current students in the French and German programs will be allowed to finish the available courses of study offered by the District.

13 The reason why the administrative team is considering the phased elimination of French and German is due to low enrollment in both programs. The District is no longer in a position to subsidize programs with such low enrollment. Until the Board of Education formally approves the budget proposal, the District will proceed with the middle school registration process as normal. If the budget reduction proposal is approved, the students who selected French and German will be notified that the languages are no longer available for study. The District will continue to enforce the 15 student minimum next year for all courses. Failure to attract a minimum of 15 students will result in the class not running for the SY. We understand that the eventual elimination of French and German is an emotional issue in the school community. We would implore all interested stakeholders to contact your school administrator if you have specific questions pertaining to proposed budget reductions. Thank you! Demond A. Means, Ed.D. Superintendent