Board Report on Parcel Tax and Reduction Options November 17, 2016 1
Agenda ◼ Planning Process ◼ Recap of November 9, 2016 School Board Meeting ◼ Board Directions from November 9, 2016 ◼ 2016/17 Reductions and Proposed Additional Reductions ◼ Parcel Tax Amounts/Reductions and Timing Options ◼ Impact of Parcel Tax Election Beyond March 2017 ◼ Whitehurst/Mosher Presentation ◼ Next Steps/Board Direction ◼ Appendix 2 Engagement Innovation Leadership Partnership Perseverance
Planning Process Understanding the Financials and Process to Address the Structural Deficit (9/13) Community Input Session 1: 9/27 Report to Board on Potential (Debrief May 3 Parcel Taxes) Reduction options to Address the Deficit (9/20) Staff input Community Input Session 2: 10/24 into reduction (Alternative Options to Reductions) recommendations Discussion and Report to Board on Reduction Options Community Input Session 3: 10/25 and Community Input (10/18) (Alternative Options to Reductions) School Board Directions (11/9) (Assessment of Potential Parcel Tax Timing and Structure) Special Added Board Meeting (11/17) Special Board Meeting (11/30) Special Board Meeting (12/5)
Recap of November 9, 2016 Board Meeting ◼ Long Range Financial Model and Planning ◼ Organizational Review and Budget Reserve Analysis ◼ District’s Financial Stewardship ◼ Enrollment and Educational Value ◼ Framework on Reducations ◼ 2016-17 Reductions of $900,000 Review ◼ Prioritization of Reductions and Considerations of Parcel Tax ◼ Parcel Tax Timing and Process ◼ Process and Timeline for Potential Staffing Reductions 4 Engagement Innovation Leadership Partnership Perseverance
Board Directions from 11/9 ◼ Develop parcel tax options with a financial model that provides 2 to 4 years of financial stability Parcel tax and reduction options ◼ One option should only include reductions that best presented at the maintains the current student experience 11/9 Board meeting was ◼ Financial stability is defined as meeting minimum based on 5 year requirements of Board Policy 3470 financial stability and maintaining a ◼ 2017/18 Reserve levels at least 15% 15% reserve in the 5th year 2021/22. ◼ Multi year budget reserve levels do not fall below 10% 5 Engagement Innovation Leadership Partnership Perseverance
Outcomes for Tonight Directions from Board on: ◼ Duration of Financial Stability (2-4 years) ◼ Size of Parcel Tax/Reductions ◼ Parcel Tax Timing ◼ Inputs on Reduction Decisions 6 Engagement Innovation Leadership Partnership Perseverance
$900K Reductions from 2016/17 ◼ $320,000 FTE Reductions from plan ◼ $90,000 Technology Budget ◼ $85,000 Instructional Materials ◼ $100,000 Book Adoption Set Aside ◼ $100,000 Student Services Budget ◼ $70,000 Maintenance Budget ◼ $75,000 General Fund Contribution to Routine Restricted Maintenance ◼ $65,000 Contracted Services, Non-essential Overtime, and Stipends ◼ $22,000 Utilities 7 Engagement Innovation Leadership Partnership Perseverance
Proposed Additional Reductions Staffing - Admin and Operations Reduction/Increase Educational Services Reductions -$230,000 Business Office Reductions -$80,000 Other Staffing or Program Custodial Reduction 1 FTE -$60,000 Non Staffing Reduce Middle School Mini Courses -$53,000 Reduction of Site Budgets -$50,000 Reduction in Professional Development -$25,000 Reduction in District Instructional Online Subscriptions -$25,000 Sub-total of Additional Reductions -$523,000 Reductions made in 2016/17 -900,000 TOTAL REDUCTIONS -$1,423,000 8 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax/Reduction Options 9 Additional Reductions Over Next 1-3 Years ➔ Two Year Model meets requirements through 2018/19 ➔ Three Year Model meets requirements through 2019/20 ➔ Four Year Model meets requirements through 2020/21 ➔ Reference Appendix for details
Parcel Tax/Reduction Options 10 Including 2016/17 Reductions ➔ Two Year Model meets requirements through 2018/19 Reductions made in 2016/17 ➔ Three Year Model meets requirements through 2019/20 ➔ Four Year Model meets requirements through 2020/21 ➔ Reference Appendix for details
Complete Reductions List Amount 11 Proposed Additional Reductions (Slide 7) -$523,000 Increase Class Size -$1,200,000 Class size: raise K-8 average to 1:24 (core and electives) -$1,200,000 Staffing - Electives, Specialists, Support -$1,323,000 Elimination of TOSA -$250,000 Modified Library program w/ library aide model and one district certificated librarian -$250,000 To reduce the parcel Replace credentialed art teachers with art aides -$206,000 tax from a level of Eliminate Science Aides -$127,000 Reduction in Instructional Aides except for Kindergarten -$360,000 $350 to $270 or Non-Staffing Reductions -$377,000 $207 per parcel will Additional Reduction in Technology Budget -$100,000 require additional Eliminate Middle School Mini Courses -$27,000 reductions in the Reduction of Site Budgets -$150,000 amount of $0.7M Reduction in Professional Development -$75,000 and $1.3M, Reduction in District Instructional Online Subscriptions -$25,000 Compensation -$770,500 respectively to Reduce Teacher work year by 3 days (2 days to remain) -$125,000 ensure four years of Reduce Principal, Director, AP Contract Day by 5 days -$45,500 financial stability. Slow salary increase (financial impact by year 4) -$600,000 Total Reductions -$4,193,500 Reductions made in 2016/17 -$900,000
Parcel Tax Timing Options OPTION 1: March 7, 2017 (precinct voting; polls open + absentee ballots) FILING DEADLINE: 12/9/2016 OPTION 2: May 2, 2017 OR June 6, 2017 (mail-in ballots ONLY) FILING DEADLINE: 2/3/2017 and 3/10/2017 OPTION 3: November 7, 2017 (precinct voting; polls open + absentee ballots) FILING DEADLINE: 8/11/2017 12 Engagement Innovation Leadership Partnership Perseverance
Impact of Parcel Tax Election Beyond March 2017 ◼ Implications for 2017/18 budget development ◼ Any election after March would require a contingency of specified budget reductions to be included with the 2017/18 Adopted Budget in order to sustain a positive certification with the County since failure of a parcel tax would mean the District is below 3% reserves in year 3 of the MYP (2019/20) ◼ Any reductions for 2017/18 will require notification to Employees (certificated) by March 15, 2017 13 Engagement Innovation Leadership Partnership Perseverance
Presentation Whitehurst/Mosher John Whitehurst 14 Engagement Innovation Leadership Partnership Perseverance 14
Next Steps ◼ Directions from Board on: ◼ Duration of Financial Stability (2-4 years) ◼ Size of Parcel Tax/Reduction ◼ Parcel Tax Timing ◼ Inputs on Reduction Decisions ◼ Next school Board meeting scheduled for November 30, 2016 ◼ Potential Draft Parcel Tax Resolution 15 Engagement Innovation Leadership Partnership Perseverance
Appendix 16 Option Target Per Parcel Reductions Additional Total Amount Implemented Reductions Reductions A1 4 Years $350/Parcel $0.9M $0.7M $1.6M A1 3 Years $350/Parcel $0.9M $-0- $0.9M A1 2 Years $350/Parcel Restore $0.9M $-0- $-0- A2 4 Years $270/Parcel $0.9M $1.4M $2.3M A2 3 Years $270/Parcel $0.9M $0.6M $1.5M A2 2 Years $270/Parcel Restore $0.3M $-0- $0.6M A3 4 Years $207/Parcel $0.9M $2.0M $2.9M A3 3 Years $207/Parcel $0.9M $1.2M $2.1M A3 2 Years $207/Parcel $0.9M $-0- $0.9M
Parcel Tax Option A1 (4 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 17 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A1 (3 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 18 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A1 (2 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 19 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A2 (4 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 20 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A2 (3 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 21 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A2 (2 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 22 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A2 (4 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 23 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A2 (3 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 24 Engagement Innovation Leadership Partnership Perseverance
Parcel Tax Option A2 (2 Yr) $900K Reduction was implemented as part of the 2016/17 Budget 25 Engagement Innovation Leadership Partnership Perseverance
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