FY16 Budget Community Forum · Increase of 15.4 FTE Teachers (due to staffing special programs) $...

FY16 Budget Community Forum

May 6, 2015 6:30 to 8:00 PM

Agenda

Introductions

School Finance Fundamentals

History of State-Imposed Reductions

Budget Options Implemented FY10 to FY15

FY16 Budget Development & Approved Options

Future School Funding Outlook

M&O Override Committee

School Finance Fundamentals In the State of Arizona, school budgets are established by limits determined

via formulas based on the number of students that are served.

Average Daily Membership (ADM) or the number of students enrolled

Eligible transported

students

Local Support

Budget Limit

10% voter approved M&O override

Weighted Factors

School Finance FundamentalsHistory of DVUSD State Formula Per Pupil Funding

$3,550.00

$3,600.00

$3,650.00

$3,700.00

$3,750.00

$3,800.00

$3,850.00

$3,900.00

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

DVUSD State Funding Per Weighted Student

School Finance FundamentalsFY14 Auditor General Spending Report for Deer Valley Unified School District - $/Studentley Unified School DistrictFinancial Metrics as $/Student2012 2013 2014 2012 2013 2014Per Student 6,511$ 6,597$ 6,718$ 6,859 7,016 7,045 Classroom Dollars 3,838$ 3,868$ 3,919$ 4,017 4,099 4,114 Non-Classroom Dollars

Administration 571$ 593$ 609$ 587 617 593 Plant Operations 796$ 763$ 751$ 812 833 812 Food Service 297$ 299$ 299$ 290 293 293 Transportation 318$ 322$ 335$ 285 294 294 Student Support 439$ 463$ 479$ 538 546 604 Instructional Support 252$ 289$ 326$ 331 334 336 Other

Non-Classroom Subtotal 2,673$ 2,729$ 2,799$ 2,842 2,917 2,931

Comp AVGDeer ValleyState Average 2014 = $7,578

National Average 2012 = $10,667

Classroom Dollar PercentagePeer Group: Very large unified and union high school districts in cities and suburbs

School Finance FundamentalsFY14 Auditor General Spending Report for Deer Valley Unified School District

Statewide % 53.8%

Peer Group % 56.6%

Gilbert USD 61.2%

Chandler USD 61.1%

Deer Valley USD 58.3%

Peoria USD 57.9%

Paradise Valley USD 57.7%

Mesa USD 57.1%

Dysart USD 55.2%

Phoenix UHSD 54.7%

Scottsdale USD 54.5%

Tucson USD 48.7%

Deer Valley USD FY14

History of State-Imposed Reductions

Does not include unrealized inflationary increases nor Building Renewal reductions

Reduction % of Allocation % of Budget (RCL) Annual Total Cumulative Total2008‐09 Soft Capital Reduction 823,731$ 10.9% 0.5% 823,731$

2009‐10 Soft Capital Reduction 5,719,561$ 72.8% 3.5% 5,719,561$ 6,543,292$

2010‐11 Soft Capital Reduction (HB2008) 6,585,171$ 84.7% 5.3%

2010‐11 Shortfall Reduction (SB1612) 1,792,789$ 2010‐11 Shortfall Reduction (SB1612) 2,056,430$ 10,434,390$ 16,977,682$

2011‐12 Soft Capital Reduction (SB1617) 7,556,354$ 100.0% 5.8%

2011‐12 Capital Outlay Reduction (SB1612) 1,460,115$ 2011‐12 Capital Outlay Reduction (SB1617) 2,585,169$ 11,601,638$ 28,579,320$

2012‐13 Soft Capital Reduction (SB1529) 6,134,536$ 82.4% 6.1%

2012‐13 Capital Outlay Reduction (SB1529) 3,372,689$ 38.9% 9,507,225$ 38,086,545$ 2013‐14 District Additional Assistance 9,427,496$ 59.3% 6.0% 9,427,496$ 47,514,041$ 2014‐15 District Additional Assistance 9,643,864$ 61.7% 6.2% 9,643,864$ 57,157,905$

46.2%

Budget Option Guiding Principles

Primary focus of organization is service to students Resources should be targeted toward Strategic Plan goals Maintaining student-teacher ratios shall be a priority All staff contribute to the objectives of the organization Employee preservation is a priority

Budget Options Implemented FY10 to FY15FY10DVUSD Highlight of Budget Changes TotalOnly funded professional growth for salary change (teachers rec'd decrease from CSF) (216,700)$ ASRS decreased from 9.45% to 9.4% 60,000$ District AdministrationReduce 2.2 Directors, 2.5 Managers & 2.0 Mentors at the District Office (294,000)$

District ClassifiedIncludes reduction of FTE in the following departments: IS&T, Facil ities, Purchasing/Warehouse, HR, AP, Transportation & Ed. Services = 24 FTE (816,000)$ Assistant PrincipalsRaise K‐6 & K‐8 qualifying to 850 for .5 FTE and 1,000 for 1 FTE = 3.5 FTE (283,000)$

Classified School StaffReduce 7 FTE at K‐6/K‐8, 4 FTE at Middle Schools & 5 FTE at High Schools = 16 FTE (384,000)$

LibrariansReplace all certified l ibrarians with an aide in all schools except High Schools (1,200,000)$

Sp. Ed. StaffReduce 3.5 intervention specialists, 2.5 consultants, 2.0 coordinators (400,000)$

TOAReduce the Teacher on Assignment by .5 FTE at 3 qualifying High Schools (90,000)$

5% District and 5% School Budget Reductions (399,500)$ Special Education Contracting Reduction 300,000$ Transportation Savings due to opening of Northern Services Center 350,000$ Soft Capital Plan Reduction (includes CIT Capital) (5,700,000)$


FY11DVUSD Highlight of Budget Changes TotalOnly funded professional growth for salary change (teachers rec'd decrease from CSF) (140,000)$ Edujob one‐time payment to staff (an average of 2.34%) (3,200,000)$ State Retirement increased from 9.4% to 9.85% (540,600)$ Reduction of 67.7 FTE Teachers (56 due to loss of full‐day KG) (3,500,000)$ Reduction of 22.5 FTE Classified (19.5 due to loss of full‐day KG) (617,000)$ Health Insurance Increase by 5.5% (1,072,500)$ Workers Compensation increased by $100,000 (100,000)$ Utilities decreased by $500,000 due to conservation efforts 500,000$ Soft Capital Plan Additional Reduction (900,000)$


FY12DVUSD Highlight of Budget Changes TotalProvided professional growth and a salary offset of 1.55% for all staff that contribute to ASRS (2,000,000)$ State Retirement adjusted from 9.85 to 10.74% ‐$ Reduction of 47.5 FTE Teachers (due to student reductions) (2,467,500)$ Reduce Contingency Staff from 12.0 FTE to 4.0 FTE inc. aboveReduction of District Administration 100,000$ Health Insurance increase by 3% (600,000)$ Utilities were decreased by an additional $1,200,000 due to conservation efforts 1,200,000$ Use of Cash Balances and Prepays to offset reductions 4,800,000$ Reduction of Capital Allocation (25% cut to School Capital Allocation plus District Allocation cut) (500,000)$ Soft Capital Plan Additional Reduction (1,200,000)$

Budget Options Implemented FY10 to FY15FY13DVUSD Highlight of Budget Changes TotalOnly funded professional growth for salary change (teachers rec'd increase from CSF) (117,500)$ State Retirement increased from 10.74% to 11.14% (446,000)$ New Alternative Contribution Rate included as a benefit cost (565,000)$ Increase of 15.4 FTE Teachers (due to staffing special programs) 787,500$ Reduction of 6 FTE Classified Staff (162,000)$ Workers compensation contribution was increased by $500,000 500,000$

Health/Dental Insurance rates remain unchanged (use of self‐insured health insurance balance to offset increase), new employees offered HSA as base plan (710,000)$

Retirees with continuing Health/Dental coverage moved to ASRS plan with DVUSD reimbursing the retirees for the cost (1,500,000)$

District Budgets were reduced by $250,000 (250,000)$ Continue use of Cash Balances and Prepays to offset reductions (4,300,000)$ Reduction of School Capital Allocation (25% cut to School Capital Allocation) (750,000)$ Continue Capital Reductions

Budget Options Implemented FY10 to FY15FY14DVUSD Highlight of Budget Changes TotalFunded professional growth (103,500)$ 1% Salary Increase (in addition, teachers rec'd increase from CSF) (1,330,000)$ State Retirement increased from 11.14% to 11.54% (450,000)$ Additional State Inflation Revenue 2,465,000$ MOWR Funding 1,130,000$ Increase of 23 FTE Academic Facilitators (1,207,500)$ Staffing Tighter (29 FTE) 1,500,000$ Benefit Changes+500 on deductibles, +$5/+$10 on PCP/Spec., + $150 ER, +$25 on Urgent Care,+$0/+$5/+$10 on Rx, reduce HSA contribution to match PPO cost ($700 on $1750 plan) 700,000$

403B Special Pay/Medical Trust Plan (FICA Savings) 90,000$ Continue use of Cash Balances and Prepays to offset reductions 3,500,000$ Additional Use of Cash Accounts 1,000,000$ Utilize VSEBT Reserves 500,000$ Continue Capital Reductions

Budget Options Implemented FY10 to FY15FY15DVUSD Highlight of Budget Changes TotalFunded professional growth (74,900)$ One‐time payment (SSF) for salary change (teachers rec'd increase from CSF) (1,373,000)$ State Retirement increased from 11.54% to 11.6% (70,000)$ Reinstate full‐day KG (2,400,000)$ Change Sp. Ed paras to teachers ‐$ Vista Peak (500,000)$ Sp. Ed Tuition Savings 500,000$ VSEBT Reserves 1,700,000$ No Change to Benefit Plans ‐$ Utility Rate Increase (180,000)$ VSIT Increase (93,000)$ Use of Community Education Cash 1,000,000$ Use Half of 5 Cash Funds vs One‐Third 900,000$ Change in Carryforward 300,000$ Use of Additional Community Education Cash 500,000$ Use of non‐renewing District funds 310,000$ Capital Delay of BGHS Tech Rich 400,000$

More (All) Capital in M&O (requires no allocation to schools and departments with an approval process for capital emergencies) 1,000,000$

FY16 Budget Development & Approved Options

FY16 Budget Development Process Negotiation Solution Team (NST)

Comprised of employee representatives and district leadership

meets monthly to review budget information

FY16 Interests Classified: salaries & benefits, maintain jobs

Administrative: salary increase, maintain benefits, additional student supports

Certified: salary theme

FY16 Budget Development ProcessMarch 19th FY16 Budget Update

Assumptions (highlights): all State-imposed reductions are continued District Additional Assistance reduced another ($4.4) M Teacher Experience Index (TEI) reduced $537,000 Student (ADM) increase included State provides 1.6% inflationary funding Structural deficit impact = ($4.54) million student open enrollment numbers included Benefit Committee recommendation included Professional Growth included

FY16 budget deficit projected to be ($4.4) million

Impacts to FY16 Budget as of March 19, 2015

Revenue ChangesADM Increase 1,310,000$ Inflation @1.59% 2,570,000$ Inflation Prior Year Adjustment 2,580,000$ Cash Balances (1,500,000)$ Community Education Cash Balance (1,500,000)$ Carryforward (1,541,000)$ as of Feb M&O report

Updated Group A and Group B counts stil l needed TEI (537,000)$ 1.0237 to 1.0204

TRCL includedCurrent carryforward amount stil l needed Current Year DAA Change (415,000)$ Change to DAA (Gov. Budget) (4,428,000)$ intent language to be taken out of non-instruction

Revenue Subtotal (3,461,000)$ = decreased revenue

Impacts to FY16 Budget (con’t)as of March 19, 2015

Expenditure ChangesClass loads are at plus 1

FY15 Gold Book to Proposed FY16 (531,610)$ Capital sti l l needed eSchools increase (270,000)$ VSIT increase (100,000)$ Additional Campus Front Office Support (49,750)$

Health insurance changes Beneft Committee recommends use of VSEBT reserves

Expense Subtotal (951,360)$ = increased expenses

FY16 Budget Projection (4,412,360)$

1% salary increase for all employees =$ (1,342,000)

District ReorganizationFTE Amount

District Office ReductionsCertified Administrator 5 (488,740)$ Director 1 (107,300)$ Manager 2 (129,650)$ Coordinator 2 (162,880)$ Specialist 1 (54,500)$

District Office AdditionsCertified Administrator 0 36,000$ Manager 1 83,300$ Coordinator 1 87,500$

District Office Classified Reductions 4.4 (157,700)$ District Office Subtotal (893,970)$

Certified Not In Classroom Reductions 15.4 (808,500)$ Certified Not In Classroom Additions 7 367,500$

Certified Subtotal (441,000)$

Classified Reductions 36 (1,037,600)$ Classified Subtotal (1,037,600)$

Total (2,372,570)$

District Reorganization

FY16 Budget Balancing OptionsMarch 19th Deficit 4,412,360$

FY16 Option 2 Budget Options ‐ Approved April 28, 2015

Priority Description AmountCumulative

Total Comments

1 District Reorganization (2,372,500)$ 1.2 Increased Carryforward (900,000)$ (3,272,500)$ 2 Use of VSEBT Reserves ($1.3 M for rate increase + $1.5 M) * (1,500,000)$ (4,772,500)$ 4 Utilize Community Education Cash Account * (500,000)$ (5,272,500)$ 5 Utilize School Cash Accounts/School Carryforward * (500,000)$ (5,772,500)$ 13 Increase Parking Fees at High Schools from $40 to $100/year (102,000)$ (5,874,500)$ 1.1 Not reduce 22.5 FTE custodians (+627K) 627,000$ (5,247,500)$ no change to night differentia l

3 Implement Athletic Participation Fee ($500K) (500,000)$ (5,747,500)$ w hardship provis ion6 Reduce remaining Academic Facilitators (5.6 FTE $294K) ‐$ (5,747,500)$ 7 Non‐Personnel District Reductions ($100K) ‐$ (5,747,500)$ 10 Change Class Size +1 in grades 7th & 8th ($420K) ‐$ (5,747,500)$ challenge due to timing of staffing11 Change Class Size +1 in grades 9th ‐ 12th ($735K) changed to ‐1 FTE at each high ‐$ (5,747,500)$

* = adds to structural deficit

1% Salary Increase for all employees 1,342,000$ Note one‐time payment in FY15

Budget Balance (w/ Items 1, 1.2, 2, 4, 5, 13, 1.1, 3) 6,860$ + = deficit/()= surplus

FY16 Budget Balancing OptionsImpact on Classroom Spending

District Reorganization

Expected to decrease administrative expenses and some instructional support expenses

Increased Carryforward

Use of VSEBT Reserves

Utilize Community Education Cash Balance

Utilize School Cash Balances/School Carryforward

Increase Student Parking Fees

Not Reduce Custodial Staff

Implement Athletic Participation Fee

Expected to have no change as these options increase revenue or keep the status quo so that additional reductions do not need to be considered

FY16 Budget Balancing OptionsFY16 M&O Budget-Balancing Options

NST List of Options – April 6, 2015

District Reorganization $(2,372,500)Defined: A reduction of 66.8 FTE: 5 Certified Administrators, 1 Director, 2 Managers, 2 Coordinators, 1 Specialist, 4.4 District Office Classified Reductions, 15.4 Certified Not In Classroom Reductions, and 36 Classified Reductions. Adds back 9 FTE: 1 Manager, 1 Coordinator, 7 Certified Not In Classroom Additions.

Benefits: Reduces administrative costs, expected to be an ongoing savings.

Drawbacks: Less support for various functions of the District. Changes custodial model by reducing FTE at sites.

Increased Carryforward $(900,000) Defined: Utilize unspent budget capacity from FY15 in FY16. Student growth earned in FY15 can be used to increase the carryforward amount.

Benefits: Does not require a reduction to implement.

Drawbacks: Can be considered to add to our structural deficit.

Use of VSEBT Reserves ($1.3 M for rate increase + $1.5 M) $(1,500,000) Defined: Reduce the self‐insurance contribution to VSEBT by an additional $1.5 million. This is in addition to the $1.3 million of VSEBT reserves already established to offset the FY16 rate increase (for a total use of VSEBT reserves of $2.8 M). As of June 2014 the balance was about $11 million with a minimum balance set at $6 million.

Benefits: Provides for an offset of an ongoing cost that is not a reduction.

Drawbacks: Adds to our structural deficit.



Utilize Community Education Cash Account * $(500,000)Defined: Use of Community Education cash balance to offset cost. Community Education cash balance is expected to be around $1 million as of June 2015.

Benefits: Provides for an offset for ongoing costs that is not a reduction.

Drawbacks: Adds to our structural deficit, depletes Community Education reserves.

Utilize School Cash Accounts/School Carryforward $(500,000) Defined: Use of school cash accounts and/or use of prior years carry forward to reduce school supply and materials allocations.

Benefits: Balances currently exist in carry forward amounts and school cash accounts: FY15 school M&O carryforward = $1 million, Facility Rental = $1 million, Tax Credit = $1 million, Auxiliary Operations = $800K, Gifts & Donations = $550K (as of June 2014).

Drawbacks: Adds to our structural deficit, some of these funds are restricted, and reduces the amount available for schools to use. This area was reduced in FY10 and FY13.

Increase Parking Fees at High Schools from $40 to $100/year $(102,000) Defined: Increase the annual student parking fee from $40 to $100. Current parking fees are less than what comparable districts charge.

Benefits: Provides a revenue source to offset parking‐related costs.

Drawbacks: Current law restricts the use of these funds, may be cost prohibitive to some families.


NST List of Options – April 6, 2015Not Reduce 22.5 FTE Custodial Staff $627,000Defined: As part of the District Reorganization that option includes reducing 22.5 FTE of custodial staffing throughout the District. This option does not make the reduction of custodians but can only be considered if the District Reorganization is implemented.

Benefits: Keeps staffing levels and cleaning schedules unchanged.

Drawbacks: Does not provide the full savings of the District Reorganization option.

Implement Athletic Participation Fee $(500,000) $(400,000) Defined: Administrative recommendation proposed to reduce the amount to an expected revenue of $400,000 and offsetting the difference by implementing the Non‐Personnel District Reduction option. Charge a mandatory athletic participation fee for athletes to pay of $100/high school sport with a cap of $200 per student and a family cap of $300. Middle school athletes would pay $60/sport with a cap of $120/student and the same family cap of $300.

Benefits: Would be eligible for extracurricular tax credit, would help to offset the cost of providing these programs on an ongoing basis

Drawbacks: May discourage students from participating, may reduce the funds available for programs as there is at least a perceived limit as to how much parents will pay to support these programs.



Non‐Personnel District Reductions $(100,000)Defined: A reduction of supply and material allocations.

Benefits: Reduces administrative costs, may be an ongoing savings.

Drawbacks: fewer resources to support functions of the organization, department allocations do not carry over from year to year, District Office Reorganization may warrant some increases to supply and material allocations to offset loss of FTE. This area was reduced in FY10, FY12, and FY13.

Reduce Remaining Academic Facilitators (5.6 FTE) $(294,000) Defined: Eliminates all the Academic Facilitators.

Benefits: Reduction of an ongoing expense, would help fund full‐day kindergarten.

Drawbacks: Eliminates this support to K‐3 teachers/schools, would require Move on When Reading funding to be reallocated.

Change Class Size (+1) K‐6 $(892,500) / 7‐8 $(420,000)Defined: Increase the class load for each grade level by one additional student.

Benefits: Provides an ongoing reduction of a continuing cost.

Drawbacks: Creates an extra work load on those affected teachers, in a competitive market place class size is a determinate parents use to make a school choice.


NST List of Options – April 6, 2015Reduce High School Teaching Staff by 1 FTE $(262,500)Defined: Decrease the teaching FTE by 1 at each of the five high schools.

Benefits: Provides an ongoing reduction of a continuing cost.

Drawbacks: Creates an extra work load on those affected teachers, in a competitive market place class size is a determinate parents use to make a school choice.


Deer Valley Unified School District Financial Priorities (in no particular order):

A salary increase for all employees

Restoring capital funding

Reducing structural deficit


Committee Charge:

To determine the need to continue the Maintenance & Operation (M&O) Override and consider other election-related funding options for the district.

Committee Membership

Looking for parents, community members and staff to meet a couple of times in May of 2015 to develop a recommendation regarding the M&O Override election in November of 2015 to be presented to the Governing Board.

The Deer Valley Unified School District enjoys a 10% voter approve Maintenance & Operations (M&O) override. The M&O Override was last approved in 2010 and these overrides have to renewed every 5 years or they are phased out. The M&O Override funding provides more than $15.6 million in funding for the District. Even with this funding, the amount of money the District receives is below the State average and below our comparable district average.

Community Input

Budget411 Website

www.dvusd.org/budget411

Survey Input

https://www.surveymonkey.com/s/DWCTYQL

FY16 Budget Community Forum · Increase of 15.4 FTE Teachers (due to staffing special programs) $...

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