2010- Greenville Independent School District. We Educate Today You Succeed Tomorrow

Transcription

1 2010- We Educate Today You Succeed Tomorrow 2011 Greenville Independent School District Greenville ISD 3504 King St/P.O. Box 1022 Greenville, Texas

2 School Finance Update Projected State Budget Deficit $15 - $27 Billion Depends on who you ask? Education Comprises approx 44% of State Budget Proposals included in HB 1 and SB 1 appropriations bills: $10 Billion Reduction to Education

3 School Finance Update Several legislative bills have been filed to provide districts with more flexibility: o o o Change 22:1 Ratio Currently, K-4 classrooms cannot exceed 22 students per class without a waiver. State Testing Days Although new testing system is currently on schedule, there have been proposals to reduce the amount of state testing elementary levels and exceptions for certain EOC. Allow Flexibility w/salaries Authorize furlough days, void teacher contracts who fail to maintain certification, allow reduction in salaries.

4 Fund Balance v. Rainy Day Fund

5 District Fund Balances Reasons why Fund Balances ARE important to Texas ISDs: 1. Bond Credit Ratings lower interest & tax rates 2. FIRST Ratings TEA requirements 3. Fund Operations between last state aid payments and period when tax collections are received 4. Delayed Payments - borrowing is costly to taxpayers 5. Unforeseen Expenditures emergencies or capital projects 6. Does not replenish when its gone its gone

6 Rainy Day Fund Reasons why the State should use ALL of the Rainy Day Fund: 1. Self-sustaining the fund is renewed each time it is depleted by revenues from oil & gas taxes (3/4 of severance tax collected above 1987 level). If entire fund ($9.4 billion) is used it is estimated that by 2013, it would be back up to $1.3 billion. 2. Texas Constitution the Rainy Day Fund can be spent to prevent or eliminate a temporary cash deficiency in general revenue. 3. Financial Solvency the state s burden to prove financial solvency is minimal compared to a Texas ISD s reliance on it s fund balance.

7 Texas ISD Advocacy Points Provide more Flexibility to Texas ISDs Spend ALL of the Rainy Day Fund No Unfunded Mandates

8 $10 Billion Reduction FSP HB1 and SB1 propose: ~ $10 Billion in cuts over 2 years ($5 Billion each year) Statewide WADA = 6,013,114 WADA Reduction per $1 Billion = $1 Billion 6,013,114 = ~$166 per WADA Greenville ISD WADA = 5,903 For Every $1 Billion, GISD loses = 5,903 * $166 = $979,898 $5 Billion Cut, GISD loses = $979,898 * 5 = $4,899,490 $10 Billion Cut, GISD loses = $979,898 * 10 = $9,798,980

9 $1 Billion in Perspective - GISD For every $1 Billion the state reduces to Education, would equate to the following for GISD: Potential Cut GISD loses Staff FTEs $1 Billion Cut $979, $2 Billion Cut $1,959, $3 Billion Cut $2,939, $4 Billion Cut $3,919, $5 Billion Cut $4,859,

10 Early Resignation Notice Incentive What is an Early Resignation Notice Incentive? A cash incentive paid to employees, who in exchange, tender their irrevocable resignation notice effective at the end of the year. Who is Eligible? GISD will be offering this incentive to every classification employed by the district. However, it will be limited to no more than 40 employees. Is this a Gift of Public Funds? No, according to AG Opinion GA-0165, an exit incentive does not violate this restriction if the employee provides consideration for the payment.

11 Early Resignation Notice Incentive Why is GISD offering this incentive? Penalty-free Resignation Date Provides information to make informed decisions regarding staffing levels, vacancies, ratios, etc Increases the reduction of staff through natural attrition How much is GISD offering? $5,000 or 10% of annual salary, whichever is lesser Possible maximum cost to district totals approximately $200,000 ($5,000 * 40 = $200,000)

12 What Can You Do? Texas State Senator Senate District 2--Senator Bob Deuell Capitol Office: EXT E1.704 Capitol Phone: (512) Capitol Address: P.O. Box 12068, Capitol Station Austin, TX District Address: LBJ Freeway, Ste. 400 Mesquite TX Phone: (972) State District Offices Talk to your Legislator!! Texas State Representative House District 2--Representative Dan Flynn Capitol Office: CAP GN.10 Capitol Phone: (512) Capitol Address: P.O. Box 2910 Austin, TX District Address: P.O. Box 999 Canton TX Phone: (903)

13 Have a Cost Savings Idea? Have a Budget Reduction Strategy or Cost Saving Idea, if so please visit the link below and us.

14 QUESTIONS FROM BOARD OF TRUSTEES GISD Mission Statement Greenville Independent School District prepares, inspires, and empowers students in a safe and nurturing environment to become responsible citizens who successfully compete in a global society.