HARRISON PUBLIC SCHOOL BUDGET

OVERVIEW

Fred HofmanSuperintendent

April 25th, 2013

PER ANB ENTITLEMENT

Current H.S. ANB Entitlement: $6,497 SB 175 2013-14 ANB Entitlement: $6,555 SB 175 2014-15 ANB Entitlement: $6,691

(+$194 per ANB over two years)

Current J.H. ANB Entitlement: $6,497 SB 175 2013-14 J.H. ANB Entitlement:$6,555 SB 175 2014-15 J.H. ANB Entitlement:$6,691

(+$194 per ANB over two years)

Current EL ANB Entitlement: $5,075 SB 175 2013-14 Elementary ANB: $5,120 SB 175 2014-15 Elementary ANB: $5,226

(+$151 per ANB over two years)

BASIC SCHOOL ENTITLEMENTS

Current High School Basic Entitlement: $260,099 SB 175, 2013-15 Basic H.S. Entitlement: $290,000 SB 175, 2015-16 Basic H.S. Entitlement: $300,000 Current Junior High Basic Entitlement: $66,275 SB 175, 2013-15 Basic J.H. Entitlement: $80,000 SB 175, 2015-16 Basic J.H. Entitlement: $100,000

Current Elementary Basic Entitlement: $23,402 SB 175, 2013-15 Basic EL Entitlement: $40,000 SB 175, 2015-16 Basic EL Entitlement: $50,000

“3” year overall increase: +$100,224No additional increase in year 2

Fiscal Cliff

Even with SB 175, we need to reduce our General Fund expenses by approximately

$120,000, or more, over the next four years. Without it, that number nearly doubles.

Plan for the worst, hope

for the best!

WITH SB 175

We need to our expenses to be closer to $900,000 in four years, or sooner if SB 175 does not get signed.

2012-132016-17

880000

900000

920000

940000

960000

980000

1000000

1020000

1040000 1021755

927556

4 year Fiscal Cliff

General Fund

FOUR YEAR FISCAL CLIFFWITH SB 175

2012-132013-14

2014-152015-16

2016-17

860000

880000

900000

920000

940000

960000

980000

1000000

1020000

1040000

1060000

1021755

1042573

973839966237

927556

4 year Fiscal Cliff

SB 175 HAS STILL NOT BEEN SIGNED

This is Harrison if SB 175 does not get passed...

3 YEAR AVERAGE ANB 2012-13 13-14 14-15 15-16 16-17 HS 47 45 37 33 29 EL 41 36 33 32 31 JH 18 16 14 12 11 Total 106 97 84 77 71 Difference -9 -13 -7 -6

HS = - 18 EL = - 10 JH = - 7

Total = 35 ANB Handout: Class Enrollment Projections

LOOKING AHEAD …ANB Dollars for: High School, Elementary & Junior High (Deficit from prior year in Red)

2013-14 2014-15 2015-16 2016-17 $294,975 $249,797 $218,573 $191,809 $184,320 $174,200 $168,974 $163,748 $104,880 $91,444 $80,292

$73,601

$584,175 $515,441 $467,839 $429,158 (45,423) (68,734) (47,602) (38,681)

4 year difference in ANB: $ (-200,440)

BASIC ENTITLEMENT + ANB:  

2013-14 14-15 15-16 16-17 HS $290,000 $290,000 $300,000 $300,000 EL $40,000 $40,000 $50,000

$50,000 JH $80,000 $80,000 $100,000

$100,000 Total $410,000 $410,000 $450,000 $450,000

2013-14 14-15 15-16 16-17

$994,175 $925,441 $917,839 $879,158 +$11,944 $(68,734) $(7,602) $(38,681)

4 year reduction INCLUDING BASIC ENTITLEMENT & ANB: - ($103,073)

INFLATION IS REAL Cost of a pickup in 1990? Cost of a gallon of gas in 1990? Cost of energy in 1990? Cost of food in 1990? Cost of education in 1990?

Cost of a new pickup today? Cost of a gallon of gas today? Utility costs today? Cost of food today? Cost of education today?

School Funding has not come close to matching inflation

FUNDS

There are a few other budgeted and non budgeted funds

General Fund Bus Depreciation Transportation Building Reserve Technology Flex Adult Education Retirement Other minor funds

too

2 KEY GRAIN BINS General Fund is

the main fund; the one that causes all the headache and heartache.

The Flex Fund is the one we are looking at using to help us through this tough time.

DESPITE FISCAL CLIFF… WE HAVE NEEDS THAT MUST BE ADDRESSED

Radiators (Heat) $10,000 or so

Wiring issues in the shop

Convection Oven $10,000 or so

Text Books Many books are old and

need replacing Supplies & Materials

Teaching supplies often get cut and that hurts our students

Science lab tools are in need of updating.

Computer operating systems – expiring!

Technology upgrades for staff Teachers need tools to

keep students engaged in learning

Technology upgrades for students Students need to

exposed to modern technology to stay competitive in today’s economy

POTENTIAL CUTS: $10,000 Reducing or eliminating

amounts Stipends / Part-time

jobs for staff & community:Pep BandAsst. CoachesAsst. Admin. StipendFootball

transportationPep Buses JH sportsFields TripsCheerleading

Advisors for various clubs Classes Honor Society Student Council Christmas Program School Play H-Club Pep Club Science Olympiad Academic Olympics Skills USA Yearbook Echo Math Contest

BUSINESS 101

In the business world, you need to spend money to make money.

Investments yield returns, if done wisely.

We need to use that mentality, to some extent, at Harrison Public Schools.

Sometimes, you need to spend money to save money.

School Van example: Annual mileage

reimbursement: $6,500-$7,500

Cost $9,000. Cost to operate:

$2,500. Annual Savings in

General Fund: $4,000-$5,000

SALARY REDUCTION Salary needs to be

reduced

Teacher Salary can be reduced in 1 of 2 ways: RIF = Losing a teacher Resignation / Retire =

Replacing a teacher

Replacing Teachers versus losing teachers is much preferred.

Replacing teachers is far better for our kids and the community.

RIF: Means further combining of classes, which means less prep time for teachers, which means less effective lessons, which means, less learning.

The last thing we want to do is RIF, although we will likely need to R.I.F. one position over the next three years.

If SB 175 fails, we may need to R.I.F. 1 now, and 1 or 2 next year.

COMPARABLE AREA SCHOOLS: BASE PAY + INSURANCE

Class C School Base Pay Insurance Total: Harrison $25,002 $4,500

$29,502 Willow Creek $24,919 $6,300 $31,219 Sheridan $26,517 $4,824 $31,341 Shields Valley $25,627 $5,888 $31,507 West Y. $27,520 $4,920 $32,440 Ennis $25,350 $7,368 $32,718 White Sulphur $26,117 $7,080 $33,197

Lone Peak $29,563 $6,000 $35,563 Twin Bridges $27,634 $8,628 $36,262 Gardiner $31,000 $7,524 $38,524 The going starting rate: (Avg Base + Insurance)

$33,227

WE PROVIDE A SUPERB EDUCATION AT BARGAIN-BASEMENT PRICES!

THE PRICE OF SUCCESS & STABILITY

15 Teachers 2012-13 2013-14 (no increase to base) Teacher 1$45,655 $45,655 Teacher 2$45,655 $45,655 Teacher 3$45,655 $45,655 Teacher 4$45,655 $45,655 Teacher 5$45,655 $45,655 Teacher 6 $40,120 $41,323 Teacher 7 $36,715 $36,715 Teacher 8 $16,208 $16,693 Teacher 9 $12,794 $12,794 Teacher 10$36,715 $37,817 Teacher 11$35,646 $36,715 Teacher 12$18,358 $18,908 Teacher 13$18,641 $19,200 Teacher 14$26,524 $27,319 Teacher 15 $25,002 $25,752 Total $494,998 $501,510

PINK ELEPHANT IN

THE ROOM•Replacing 1 of our 5 top salaries with new, young teachers, would result in $20,000 in annual savings.

•Three top end teachers = $60,000

•Not replacing one of the top teachers = $50,000

TEACHER BUYOUT 101

Let’s just say, you pay a veteran teacher $45,000.

Let’s say you buy out a teacher for $20,000.

Let’s say you hire a new teacher at $25,000

(Note: there are other costs associated with whatever buyout you opt with, in conjunction with Retirement Fund)

Year 1 Savings: $0,000

Year 2 Savings: $20,000

Now, if buyout funds come from a source other than the General Fund, Year 1 Savings = $20,000.

That savings would then continue on thereafter…

FUNDING SOURCE(S) We do not currently

have funds in any account that we could use for this purpose.

The Board is able to transfer sufficient funds from Bus Depreciation to Flex, with approval from the voters.

The voters could, now or in the future, vote for a maximum levy and those excess funds could then be used for a 1 time buyout(s) of a teacher.

We could all buy lottery tickets and hope for the best.

BALLOT ISSUE: FUND TRANSFER

The Fund Transfer is key to our school’s long range & short term planning.

We will have shortfalls but we may not know exactly how much and when or where the funds will be most needed.

We need to give the board some flexibility to get us through this difficult time.

This transfer will helps the board save the school and minimize impacts on the taxpayers.

BUS DEPRECIATION PROJECTIONSINFO. BASED UPON CONSULTATION WITH HARLOW’S

TRANSPORTATION ON FUTURE BUS COSTS

School YearExpenditure

(-)Annual Depreciation

(+) Fund Balance (=)

2009-10 $75,604.50 $37,194.00 $322,893.00

2010-11 $0.00 $37,194.00 $284,572.00

2011-12 $92,414.14 $49,927.00 $289,251.00

2012-13 $0.00 $44,177.73 $333,235.00

2013-14 $0.00 $44,177.73 $377,413.00

2014-15 $67500.00 $38,889.83 $344,803.00

2015-16 $0.00 $47,153.00 $391,956.00

2016-17 $0.00 $39,543.00 $431,499.00

2017-18 $100,000.00 $51,982.00 $383,481.00

2018-19 $0.00 $42,741.42 $426,222.00

2019-20 $125,000.00 $58,500.00 $359,722.00

2020-21 $0.00 $58,500.00 $418,222.00

2021-22 $0.00 $51,750.00 $469,972.00

BUS DEPRECIATION AFTER TRANSFERINFO. BASED UPON CONSULTATION WITH HARLOW’S TRANSPORTATION ON

FUTURE BUS COSTS

School Year

Expenditure (-)

Annual Depreciation (+) Fund Balance (=)

2009-10 $75,604.50 $37,194.00 $322,893.00

2010-11 $0.00 $37,194.00 $284,572.00

2011-12 $92,414.14 $49,927.00 $289,251.00

2012-13

$250,000 $44,177.73 $78,235.00

2013-14 $0.00 $44,177.73 $122,422.00

2014-15 $67500.00 $38,889.83 $93,811.00

2015-16 $0.00 $47,153.00 $140,964.00

2016-17 $0.00 $39,543.00 $188,117.00

2017-18 $100,000.00 $51,982.00 $140,099.00

2018-19 $0.00 $42,741.42 $182,840.00

2019-20 $125,000.00 $58,500.00 $116,340.00

2020-21 $0.00 $58,500.00 $174,840.00

2021-22 $0.00 $51,750.00 $226,590.00

FLEX FUND Can we even do this? Didn’t Ennis do

something like this and get into trouble?

Yes, we can. Yes, Ennis got into trouble, because they didn’t do it correctly.

Funds can be transferred into our Flex Fund from the Bus Depreciation fund as described in MCA 20-9-208.

This fund is used for technology, facility expansion, student assessment and evaluation, curriculum development and other types of expenditures as described in MCA 20-9-543.

 20-9-543. SCHOOL FLEXIBILITY FUND -- USES.  The board has the discretion to use the flex funds for a number of

permissible purposes. The Board could …

… use some of the funds to make sure our teachers had the best technology available to teach with and engage our students in learning. They could also insure that our students are familiar and capable of using modern technology and even lead the way, which would make our school more attractive to other potential students.      

… use some of the funds for facility upgrades that would help learning: new radiators, safety, etc….      

… use some of the funds to make sure our teachers were not lacking in supplies and materials to teach.      

…use some of the funds to help gifted students and students who need intervention get the individualized help they need to be successful.     

… use some of the funds to replace old and outdated text books, so our students have the best material possible to learn from.     

...use some of the funds for training staff and keep them on the top of their game.          

… use some of the funds to help with respect to bonuses and incentives salaries, subject to collective bargaining.     

… use some of the funds to help with increased energy costs caused by an increase in energy rates from the rates paid by the district in fiscal year 2001.

Q & AQ: How is the board planning to address

the issues long-term?A:  There is no one answer that will solve our

dilemma. The fund transfer is just the 1st step. The community and staff will need to work together over the next few years to keep our school successful. It will take cuts in all areas of the school’s operations, including staff salary and may even include reducing some extra curricular programs.

We need to be creative and must shed salary.

 Q: Can’t we just combine classes?A: We already do. We currently have

combined classes for K-2; 3-4; 5-6; and for the most part, grades 7-8. Combining those classes more will negatively impact learning for those students.

High School is difficult to combine as each subject must be taught by a teacher with a degree specific to that subject. We will make some adjustments, but we can only go so far.

Q: When will the addition to the school be paid for?

A: Next year. The school addition is paid for after the 2013-14 school year, which is a $107,000 or a 47 Mill tax reduction!

This is part of the reason the board opted to not ask for a Levy this year.

Q: Will our school taxes go away if we close the school?

A:  No. If the school closes, good jobs will go away, students will get bussed away, but your taxes won’t go away. In short, your taxes will just be set by the Ennis School Board of Trustees, instead of by the folks you elect in Harrison, Pony & Norris.

Further, the economic impact would be terrible for the businesses in Harrison, Pony and Norris.

FAITH – HAVE A LITTLE!

QUESTIONS / COMMENTS

TRUSTEE ELECTION

Parker Taylor Dustin Wagner

Winner: Not necessarily the one who gets the most votes…

We are fortunate we are not going through what Ennis is going through with respect to their Election.