+ Budget Forum Presentation April 8, 2019
+ Drug Coverage and Budget Deficit Our prescription drug costs have escalated substantially. The trend as of now is a 33% increase compared to budgeted costs. The draft budget includes a 35% increase in prescription drug costs. Recent billings indicate that this trend is continuing and may escalate further. Changes in health benefits are a mandatory subject of collective bargaining The next few slides show our coverage and cost data
+ Drug Coverage for Active and Retired Employees and % Contributions Unit Active Retired Total % % % recent earlier earlies t VTA 88 38 126 18 18 18 UEV 61 39 100 20 11 10 VAA 7 5 12 20 15 15 Dist. 4 5 9 20 11 10 Office Dist. 0 8 8 20 15 10 Admin. Totals 160 95 255
+ Budgeted Cost of Prescription Drug Coverage in the 18-19 School Year Unit District % of total share in district cost dollars VTA $534,000 49.7% UEV $441,000 41.0% VAA $39,500 3.7% Dist. Office $32,300 3.0% Dist. Admin. $28,000 2.6% Total $1,074,800
+ Actual Drug Costs and Reserves Drug costs have exceeded the budget by $588,000 in this fiscal year Drug reserves at the beginning of this school year were $681,000 Drug reserves as of June 30 (the end of the fiscal year) are projected to be under $100,000 The Assistant Superintendent has formulated the following plan to hopefully allow the drug plan to stay solvent for 19-20: Take $250,000 from the NEHIT Health Reserve (this is for Blue Shield Health Insurance products not drug) Take $40,000 from the Tax Certiorari Reserve Use unappropriated fund balance above 4% at the end of the fiscal year and apply it to the drug reserve
+ Longer Term Implications of the Escalation in Drug Costs The rapid escalation in drug costs is likely to continue The current trend is unsustainable and will continue to erode our educational programs and opportunities for students Changes in drug coverage will take several months to a year to put in place and are subject to collective bargaining Therefore, it is imperative to make reductions in the budget for 19-20 so that we will hopefully have sufficient reserves to cover drug costs until a new plan is in place
+ Recommendations for the 19-20 Budget A late retirement provides a net savings of $26,500 Our district did not receive any additional state aid in the adopted state budget Reducing the general fund subsidy to the school lunch program provides a savings of $10,000 We recommend that all reductions presented at the budget forum on March 27 (with a change to the aide position recommended) should be implemented so that we can hopefully have sufficient reserves to fund the drug program for the 2019- 20 fiscal year We must begin the process of getting a new drug plan in place for the 2020-21 school year
+ Proposed Reductions Part I Potential Reduction Savings Implications Eliminate HS 0.2 $40,800 A section of math consolidated Math/0.8 TA position Reduce Family and $31,300 Eliminate HS FACS – not required by Consumer Science regulations. Teacher to 0.7 Reduce French Teacher $13,300 Begin phasing out French; do not offer to to 0.8 7 th graders for 19-20. Another option – do not offer French 4 in 19-20. Eliminate 1.0 $70,400 Enrollment in 19-20 Kdg. is 89 students as Elementary Teacher of now. 4 sections with reduction = 22/23 per class as of now Eliminate the SRO $65,000 The SRO was introduced as a pilot and is program not sustainable due to budget Reduce BOE budget $3,000 BOE conferences and mileage lines eliminated
+ Proposed Reductions Part II Potential Reduction Savings Implications 0.4 HS Social Studies $23,800 Sections consolidated Teacher 0.4 HS ELA Teacher $24,500 Sections consolidated 0.4 MS-HS Dean $27,500 Principals cover responsibilities Eliminate Business $14,000 Cover functions Office Software another way Program & Telecomm Contract Reduction in $20,000 Less PD for our staff Professional Development funding Reduction in Summer $10,000 Less curriculum Curriculum Work development Reduce Athletic $4,000 Longer replacement Uniform Purchase cycle
+ Proposed Reductions Part III Potential Reduction Cost Savings Implications Eliminate District $14,200 Less opportunities for Funded Field Trips students Eliminate ES Science $26,700 Less instructional TA Position support for science Eliminate MS-HS $24,900 Less support for Library TA students Reduce Late Buses to $4,000 Less after school 2 days per week transportation for students Eliminate Minds On $4,200 Less options for Program students Eliminate Arts in Ed. $8,600 Less options for program students Eliminate MS 1 to 1 $36,700 No longer required Aide
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