REMARKS TO THE BOARD OF EDUCATION

09-22-08

Members of the Board of Education:  Mr. Golinar and I wish to give you an update of the district’s financial outlook this evening so staff and parents are alerted as to our fiscal realities, what we have done to date to curtail costs, and what we will cut should the November levy fail. 

Mr. Golinar.  (see Power Point presentation)

What Mr. Golinar just demonstrated is, based on our financial outlook for the next few years, we need to pass a levy in 2008 in order to make ends meet.  I want to remind our public that we have postponed a levy until 2008 and reduced expenditures significantly every year for the last 3 years.  The bulk of our cuts have come from reducing staff.    

• In 2006-2007, we cut nearly $1 million from the budget.
• In 2007-2008, we cut an additional $2.1 million with the bulk of that coming from reconfiguring our K-6 buildings and closing the Cameron Park building.   
• This year we have cut over $1 million.  This included freezing administrative salary increases while hiring a science lab teacher at grades 5 & 6 to help improve student achievement in science.    

While we have been fiscally responsible in cutting over $4 million during a three-year period, other costs continue to escalate in areas over which we have no control.  For example, we have seen tuition for underperforming charter schools rise an average of $180,000 annually.  We have seen tuition for special needs and other out-of-district placements increase an average of $136,000 annually.  And all of us know how fuel costs have impacted our budgets in the last several months. 

In each of the above series of cuts, we are speaking of the General Fund which is used to pay for day-to-day operations.   General Fund dollars, as you know, come from two primary sources:  voted property taxes and state aid, in that order.   

Our General Fund revenues from voted property taxes have not risen in 4 years and our General Fund revenues from state aid have not increased in the last 3 years, as Mr. Golinar pointed out.  Last week, we received notice from the Governor that state revenues have decreased dramatically.  While the effect on school districts is not known at this time, estimates range from a decrease of from 5 – 10% of our transitional guarantee aid from the state.  This is not good news.

If the 2008 levy fails in November, we will recommend that the following be eliminated.   These may be amended as new information becomes available, but the bottom line is this:  The administration must reduce General Fund expenditures by another $1 million in 2009-2010 to remain solvent.  Those positions and staff to be eliminated include:   

·        Busing for K-8 students who live less than 2 miles from school

(In addition to the elimination of high school busing, this would include Winton Woods students as well as private and charter school students residing in our district).   

·        18 staff positions

·        a portion of the athletics program

Previous reductions have resulted in larger class sizes at the primary, elementary, and intermediate buildings.  The next round will target middle and high school class size and impact advanced courses and intervention services, security, instructional support, and our secondary sports programs.     

Previous reductions have also forced us to put off necessary maintenance at some of our school buildings.  For example, if you’ve been to concerts at our middle school lately, you know the acoustics in the auditorium are sorely lacking.  What you may not know is that a new internal communications system between the principals’ office and the classroom has been postponed due to the $30,000 price tag.  Our textbook adoption cycle has been postponed, as have roof repairs at 3 buildings and paving at various parking lots.  Just last week, storm damage to the Community Building and middle school resulted in unexpected losses involving time and money.       

In conclusion, the future of the district is in the hands of the November 4 voters.  If the levy fails, it will reduce our ability to offer advanced courses and intervention services at the middle and high school levels; severely hamper our ability to conform to state and federal mandates; and impede our ability to improve our report card status.  Most importantly, it will not permit us to move forward, to provide a world-class education for our students and to recruit and retain high-quality staff.  We have already lost good teachers and administrators to other districts that offer more job stability.  We want to provide the kind of public school system that invites families to buy homes in our communities.            

Members of the Board, that concludes our report on the district’s financial status.