Council of Great City Schools CFO Conference. November 12,

Council of Great City Schools CFO Conference November 12, 2014 1

Knox County Schools "Our willingness to make hard financial decisions, evaluate programs, reallocate dollars from administrative to instructional areas, and develop the extensive return on investment report in 2012 were tremendous assets." Dr. Jim McIntyre, Superintendent Hear from the District: About the District: Schools: 90 Staff: ~7,900 Students: ~59,000 % Low Income: 47% Annual Budget: $420 million Smarter School Spending Technical Assistance Partner: Parthenon Group Why Smarter School Spending? What were the best highlights from the process? What were the biggest challenges you faced? What were the outcomes for your district? 2

New standards and tests Educator evaluation and supports Personalized learning Flat Revenue and Budget Constraints

IS FOR YOU

Education leaders want to do this work Districts are committed to implementing a number of key reforms: 99% said a stronger teacher evaluation system 93% said Common Core (or a similar program) 99% said increasing professional development However 90% cited financial challenges in implementing their district reform strategy Only 16% know how much extra money will be needed to implement the reform strategy And 8% can compare investments based on their impact on student achievement Source: American Institutes for Research (AIR), Gates Education Finance Portfolio Evaluation: Budget Decision Markers Survey, 5

Districts have made it clear: They are looking for support Can districts identify cost savings & efficiency in the budget to fund priorities? Is there support from the community or the ability to engage stakeholders? Only 21% have the ability to project revenue and expenditures 6% have support from principals and teachers to shift resources for reform Only 9% have a budget that reflects decisions based on cost effectiveness 19% have a school board that is engaged in aligning resources to improve student achievement Only 14% have access to affordable technical assistance to help the district identify cost savings and alignment opportunities And 20% are equipped to address pushback from stakeholders about cost savings initiatives Source: American Institutes for Research (AIR), Gates Education Finance Portfolio Evaluation: Budget Decision Markers Survey, 6

The good news: 4 districts already have made progress 1 Fayette County, Kentucky Students: 37,819 2010 2011 Expenditures: $401m Budget Process: School autonomy through councils 2 Knox County, Tennessee Students: 57,847 2010 2011 Expenditures: $411m Budget Process: School staffing formula calculated based on student need 3 Lake County, Florida Students: 41,110 2010 2011 Expenditures: $337m Budget Process: Centrally coordinated 4 Rochester, New York Students: 32,223 2010 2011 Expenditures: $568m Budget Process: Central office managed master schedule and staffing process 7

Encouraging early results Fayette County Schools Knox County Schools Sample Priorities: 1. Providing more coaches and reading teachers 2. Formalizing curriculum 3. Sustaining resources for band and ESL programs Savings: Closed budget gap of $20m Sample Priorities: 1. Effective supports to educators 2. Effective staff 3. Personalized learning experience Savings: Identified $46m in potential cost savings Lake County Schools Rochester Central School District Sample Priorities: 1. Investment in struggling students 2. System and capacity building Savings: Identified $40m in realignments over 3 years Sample Priorities: 1. Reading on Grade Level by Third Grade 2. More and Better Learning 3. Instructional Excellence Savings: $51.8m In operational efficiencies; will close budget gap by 2018 8

Practical tools that will allow your district to: 1 Allocate resources more effectively 2 Identify and gain support for your instructional priorities

Pay for Priorities: Overview Districts face multiple challenges when trying to allocate resources Districts face a set of challenges when trying to identify resource allocation opportunities differently Focus only on cost savings strategies used in the past Deep analysis of all possible options not reasonable or feasible No clear road map for freeing up needed funds Strategies used in other districts do not appear to be relevant Lack of benchmarking can normalize outlier patterns or spending 11

Identify and prioritize options for cost savings To fund your instructional priorities, your district will want to identify savings options with the highest potential, then conduct a full analysis of that opportunity Look for savings strategically 12

From SmarterSchoolSpending.org: List of Savings Options A list of 31 opportunities could reveal overlooked savings options Reducing operational costs Rethinking service delivery models for students who struggle Maximizing revenue Boosting the impact and costeffectiveness of professional development for teachers 1 2 3 4 5 6 Can the district free up funds from general education transportation? Can the district free up funds from energy expenditures? Can the district free up funds from maintenance services? Can the district free up funds from custodial services? Can the district free up funds from food services? Can the district free up funds from classroom and other instructional technology? 7 8 9 10 11 Can the district address mild special needs differently? Can the district free up funds from paraprofessional positions? Can the district free up funds by increasing the impact of intervention teaching positions? Can the district free up funds from special education teaching positions? Can the district free up funds from speech and language therapist positions? 15 16 Can the district increase state and federal funding by maximizing free and reducedpriced meals enrollment? Can the district increase federal Medicaid reimbursement for healthrelated student services? 17 18 19 20 Can the district free up funds from professional development expenditures? Can the district provide more professional development opportunities for core teachers at little or no additional cost? Can the district increase the impact of the coaching model at little to no additional cost? Can the district free up funds from instructional coaching positions? 12 Can the district increase the impact of Title I spending? 13 Can the district free up funds by reducing reliance on outof district special education placements? 14 Can the district free up funds by reducing its reliance on alternative schools for students with behavioral challenges? 13

From SmarterSchoolSpending.org: List of Savings Options A list of 31 opportunities could reveal overlooked savings options Examining staffing levels of noninstructional staff Using instructional time more costeffectively Managing class size 21 22 23 24 Can the district free up funds from central office spending? Can the district free up funds from school based administrator positions and/or increase the impact of existing positions? Can the district free up funds from clerical support positions? Can the district free up funds from library/media specialist positions and/or increase the impact of existing positions? 26 27 28 Can the district free up funds associated with teacher absences? Can the district free up funds from extended school day and/or year programs? Can the district free up funds from blended learning and/or online classes and/or increase the impact at little or no additional cost? 29 30 31 Can the district free up funds by managing class sizes differently at the elementary schools? Can the district free up funds by managing class sizes differently at the middle schools? Can the district free up funds by managing class sizes differently at the high schools? 25 Can the district free up funds from guidance counselor positions? This list is not meant to be comprehensive, but these 31 ideas can help your district identify opportunities that may have otherwise not been considered. 14

This image cannot currently be displayed. From SmarterSchoolSpending.org: Screening and Sizing Tools Identify and prioritize options for cost savings Use the screening and sizing tool to narrow the list of savings opportunities to those that have the highest potential The screening tool uses basic data to give you an assessment of how high potential each priority is Screening and Sizing Tool SCREENING TOOL Can speech and language services be managed more effectively and efficiently? Speech and language pathologists (SLPs) play an important role in serving students with special needs. In some cases, districts may be able to provide the same or higher levels of service with fewer therapists by clarifying staffing guidelines, service delivery models, and/or entrance and exit criteria for services. Instructions Select the screening tool of greatest interest to you. Answer the questions and fill out the scores. Use the scoring rubric to make sense of your score. If you do not have district data to use, data for Sampleton has been provided in the handout. Find the Screening and Sizing Tool in Step 5 15

From SmarterSchoolSpending.org: Screening & Sizing Tools Identify and prioritize options for cost savings After you ve done a the screening process, your district will want to Estimate a rough size of each opportunity Sizing Tools within the Screening and Sizing Tool A sample sizing tool is included in your handout Find the Screening and Sizing Tool in Step 5 16

From SmarterSchoolSpending.org: Screening & Sizing Tools Identify and prioritize options for cost savings After sizing the opportunity, your district will want to Conduct a full analysis to assess full cost savings potential SmarterSchoolSpending.org provides a set of resources, savings tactics, and processes to support your district through that analysis 17

Examples from the Districts: Pay for Priorities Analyze Cost Savings Opportunities Knox County Schools needed to find savings to cover a $9M budget gap plus $8 30M to cover instructional priorities. To do so, it completed an in depth analysis in the following areas Time: Instructional models Effectiveness of instructional aides Talent: Instructional coaching model Evaluation system PD supports Strategic compensation Programs: Special education model Early grade intervention programs Personalized student learning Overall resource allocation: Central office Per pupil equity analysis Smarter School Spending provides resources and guidance to help people complete the deep dive analysis 18

Practical tools that will allow your district to: 1 Allocate resources more effectively 2 Identify and gain support for your instructional priorities

How will you improve student outcomes? Develop Priorities What are the district s instructional priorities for increasing student achievement? Could the district invest in successful existing programs? Are there new programs the district could fund? Estimate Costs of Priorities $ How much do those priorities cost? Both financial and academic officers should work together to craft the details of the instructional priorities and determine how much they will cost

Examples from the Districts: Set Strategic Priorities Knox County Schools focused on its strategic priorities KCS has three goals to support improving student achievement: 1. Goal 1: Focus on Every Student Guarantee Excellence in the Classroom Personalize Learning Facilitate High Quality Student Supports 2.Goal 2: Invest in Our People Build & Support Our Community of Learners Build & Support Our Community of Leaders Value Our Hardworking People 3.Goal 3: Partner with Our Stakeholders Build & Strengthen Our One Big Team Invite & Earn Stakeholder Feedback Improve Customer Service & Communication 21

From SmarterSchoolSpending.org: Cost Projection Tools Determine how much it will cost to implement priorities Once you ve identified your priorities, you will want to find a way to pay for them. Before you can do that, do you know how much your priorities will cost? 22

From SmarterSchoolSpending.org: Cost Projection Tools Determine how much it will cost to implement priorities The cost projection tools provide guidance for estimating the costs of each component of your instructional priorities Use of the prepopulated tools for support for three specific types of priorities: Cost Projection: Common Core State Standards Cost Projection: Feedback for Teachers Cost Projection: Blended Learning Or, use the blank template to estimate the costs for any initiative Cost Projection Template Find the Cost Projection Tools in Step 4 23

From SmarterSchoolSpending.org: Cost Projection Tools What does a completed tool look like? Instructional Coaches Do you plan to hire instructional coaches for teachers? Year 1 Year 2 Year 3 Year 4 Year 5 Yes $ 1,525,476 $ 1,470,119 $ 1,470,119 $ 1,470,119 $ 1,470,119 A snapshot of the costs involved in implementing a new instructional coaching program using the Feedback for Teachers Tool Groups of Teachers Receiving Instructional Coaching Learning Coaches for New and lowperforming teachers existing teachers receive an additional stipend Master Teachers for All teachers existing teachers receive an additional stipend PIT Crew for All teachers existing teachers receive an additional stipend # of Teachers Receiving Coaches Teachers per Coach Year 1 Year 2 Year 3 Year 4 Year 5 800 770 770 770 770 4 8450 8150 8150 8150 8150 42 8450 8150 8150 8150 8150 420 Time for Collaboration Year 1 Year 2 Year 3 Year 3 Year 4 Do you plan to designate common planning time within the school day for teachers to collaborate? No $ $ $ $ $ PD Days Year 1 Year 2 Year 3 Year 4 Year 5 Do you plan to provide additional PD days to teachers? No $ $ $ $ $ Additional Leadership Staff Year 1 Year 2 Year 3 Year 4 Year 5 Do you plan to hire additional full time staff to oversee your new Yes $ 1,716,000 $ 1,716,000 $ 1,716,000 $ 1,716,000 $ 1,716,000 investments in PD? Position Description Salary Number of Employees Instructional Facilitators $ 78,000 22 22 22 22 22 Training Year 1 Year 2 Year 3 Year 4 Year 5 Do you plan to incur any additional training costs for your Yes $ 375,000 $ 375,000 $ 375,000 $ 375,000 $ 375,000 new PD investments? Non Personnel Description Cost Units District wide Conference $ 150,000 1 1 1 1 1 Professional Learning Community (PLC) Institute $ 500 250 250 250 250 250 PLC Training and Capacity Building $ 100,000 1 1 1 1 1 A example completed tool and video tutorial is available in Step 5 Find the Cost Projection Tools in Step 4 24

None of the district s work around resources or instructional priorities would be possible without a district wide effort to organize the leadership, engage stakeholders, and effect lasting change

Smarter Schools spending offers a full suite of tools to help you throughout the process making a detailed work plan & committee structure assessing the budget and academic landscape beginning to bring stakeholders into the process How well are our students achieving? What is our budget situation? How can we inform the community?

Examples from the Districts: Plan and Prepare Knox County engaged community stakeholders early on KCS involved the whole community in Knox2020 through: 70 one on one interviews with elected officials, KCS senior staff, and community leaders 8 Insight Sessions; 800+ people 2 Feedback Sessions; 100+ people 20 Chatterboxes; 700+ people Surveys; 5000+ people 27

Your district will need to weigh tradeoffs and implement the plan Make decisions by weighing the budget tradeoffs Implement those decisions in a Strategic Finance Plan & Annual Budget $ Investment in Instructional Priorities $ Savings Options 3 5 year Strategic Finance Plan Strategic Annual Budget

Examples from the Districts: Implement Plan Adopt Strategic Finance Plan Districts have created Strategic Finance Plans reflecting the work done through Smarter School Spending 29

The process is not one and done. Rather, it is a shift in how districts do business. As such, the process must be sustained by building internal capacity continuing to improve the process Can your district HIRE new staff TRAIN existing staff or PARTNER with an organization to build the capacity of the district? Make a plan to carry out the Smarter School Spending process and refresh the Strategic Finance Plan each year

All of this can be combined into a comprehensive process SmarterSchoolSpending.org has resources organized into a step by step process that your district can follow 31

But it is more than just a process Access a full library of resources from experts and districts across the country 32

But it is more than just a process Find a list of technical assistance providers who can support your district with this process 33

But it is more than just a process Join a community of other districts to get support in the process through discussion boards 34

For more information Contact The Government Finance Officers Association 203 N. LaSalle Street Suite 2700 Chicago, IL 60601 1210 (312) 977 9700 Matt Bubness mbubness@gfoa.org What is the GFOA? GFOA is an association representing 18,000 public finance officials throughout the United States and Canada The organization's mission is to enhance and promote the professional management of governmental financial resources by identifying, developing, and advancing fiscal strategies, policies, and practices for the public benefit GFOA will lead ongoing management of the SmarterSchoolSpending.org website & resources 35

Link to Best Practices and Recognition Awards Government Finance Officers Association (www.gfoa.org) Best Practices in School Budgeting Award for Best Practices in School Budgeting (2016 2017) Growing the Smarter School Spending resources Supporting organizations working with districts Training, Additional Resources, Networking, Professional Development Keeping Informed Review and comment on best practices through GFOA website http://www.gfoa.org/pk12 bestpractice draft Complete interest sheet to be notified of new events and resources Tour the website Follow GFOA for updates and more information 36

SmarterSchoolSpending.org 37