Near Death of a District: The ‘Perfect Storm’ School District of Florence County Jan Dooley,...

Near Death of a Near Death of a District: The District: The ‘Perfect Storm’‘Perfect Storm’

School District of Florence School District of Florence CountyCounty

Jan Dooley, District AdministratorJan Dooley, District AdministratorRural Advisory Council Rural Advisory Council

PresentationPresentationJanuary 12, 2006January 12, 2006

Reproduction or use of information, photographs, and/or ideas presented in this document are prohibited without prior written consent of the author.

The Perfect StormThe Perfect Storm


The BeginningThe Beginning

The Perfect Storm began to brew in The Perfect Storm began to brew in the late 1980s. the late 1980s.

Post employment health insurance Post employment health insurance benefits were added to teacher benefits were added to teacher contract.contract.

This benefit was a cost saving This benefit was a cost saving measure at the time – and was an measure at the time – and was an incentive to move higher-cost incentive to move higher-cost teachers into retirement and obtain teachers into retirement and obtain lower cost, newly educated teachers.lower cost, newly educated teachers.


Increasing Momentum in Increasing Momentum in Early 1990sEarly 1990s

The storm picked up momentum in The storm picked up momentum in the early 1990s when revenue caps the early 1990s when revenue caps went into effect.went into effect.

Our district was a lean spending Our district was a lean spending district in the base year.district in the base year.

Thus, per pupil revenue amount was Thus, per pupil revenue amount was set lower than many other districts.set lower than many other districts.


Cool Waters of the mid Cool Waters of the mid 1990s1990s The intensity of the storm was The intensity of the storm was

calmed by cool waters in the mid calmed by cool waters in the mid 1990s as enrollments continued to 1990s as enrollments continued to increase.increase.

Rising enrollments masked the Rising enrollments masked the monster of a storm that was taking monster of a storm that was taking shape.shape.


Warm Waters of the late Warm Waters of the late 1990s and Early 2000s1990s and Early 2000s

Warms waters of the late 1990s and early Warms waters of the late 1990s and early 2000s moved the storm from a tropical 2000s moved the storm from a tropical depression to a full-fledged hurricane caused depression to a full-fledged hurricane caused by:by: Declining enrollmentDeclining enrollment Escalating health insurance costsEscalating health insurance costs The ticking time bomb – Post employment health The ticking time bomb – Post employment health

and dental benefitsand dental benefits Low revenue limitLow revenue limit Increased fixed costsIncreased fixed costs Rising property values with subsequent decrease in Rising property values with subsequent decrease in

state aidstate aid


The ‘Perfect Storm’ – The The ‘Perfect Storm’ – The CausesCauses

Declining enrollment – Peak of 929 FTEs in 1996-97; 830 in Declining enrollment – Peak of 929 FTEs in 1996-97; 830 in 2001-02; 636 in 2005-06 (Drop of 32% from 1996-97; drop 2001-02; 636 in 2005-06 (Drop of 32% from 1996-97; drop of 24% from 2001-02)of 24% from 2001-02)

Escalating health insurance costs – 39% increase in Escalating health insurance costs – 39% increase in premiums in 2001-02 school yearpremiums in 2001-02 school year

Post-employment benefits – some with health & dental Post-employment benefits – some with health & dental benefits until age 75; others until Medicare; new hires none benefits until age 75; others until Medicare; new hires none ($426,000 paid in 2004-05; projected $515,000 in 2005-06)($426,000 paid in 2004-05; projected $515,000 in 2005-06)

Low per pupil revenue since 1993-94 (insufficient to Low per pupil revenue since 1993-94 (insufficient to maintain adequate programming, support increased costs, maintain adequate programming, support increased costs, and resume deferred spending) Sparsely populated county and resume deferred spending) Sparsely populated county with long bus routes (Some runs over 3 hours per day)with long bus routes (Some runs over 3 hours per day)

Fund balance had dropped from $777,000 at the beginning Fund balance had dropped from $777,000 at the beginning of 2002-03 to $164,000 at the beginning of 2003-04 of 2002-03 to $164,000 at the beginning of 2003-04


Severe Declining Severe Declining EnrollmentEnrollment

School District of Florence CountyFTE Enrollment

As of September 19, 2005

929912 912

875 875

830

781 771

693

636

500

550

600

650

700

750

800

850

900

950

1000

1050

1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06

Includes 61 students on

open enrollment

Includes 30 students on open

enrollment


Escalating Health Escalating Health Insurance CostsInsurance CostsChanges in Health/Dental Costs

Funds 10, 27, 502000-01 through 2004-05

$810,968

$1,239,372

$1,720,287

$1,298,050

$1,895,865

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

Health/Dental $810,968 $1,239,372 $1,895,865 $1,720,287 $1,298,050

2000-01 2001-02 2002-03 2003-04 2004-05

Includes auditor adjustment for two months’ premium


The Historical Perspective – The Historical Perspective – Change in Revenue & Change in Revenue & ExpendituresExpenditures

Changes in Revenue & Expenditures1998-00 through 2002-03

$6,723,382

$7,132,820

$6,954,627

$6,615,665

$7,373,499

$7,763,870

$7,150,688

$6,807,554

$7,161,778

$6,809,161

$6,000,000

$6,200,000

$6,400,000

$6,600,000

$6,800,000

$7,000,000

$7,200,000

$7,400,000

$7,600,000

$7,800,000

$8,000,000

Revenues $6,723,382.00 $6,807,554.00 $7,132,820.00 $6,954,627.00 $7,150,688.00

Expenditures $6,615,665.00 $6,809,161.00 $7,161,778.00 $7,373,499.00 $7,763,870.00

1998-99 1999-00 2000-01 2001-02 2002-03


The Historical The Historical Perspective – Change in Perspective – Change in Fund BalanceFund Balance

Fund Balance Changes - EOY1998-99 through 2002-03

$777,701

$164,519

$1,196,573$1,225,531$1,227,138

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Fund Balance - EOY $1,227,138.00 $1,225,531.00 $1,196,573.00 $777,701.00 $164,519.00

1998-99 1999-00 2000-01 2001-02 2002-03


The ‘Perfect Storm’ – The ‘Perfect Storm’ – Attempted RemediesAttempted Remedies Reduced personnel by 29% since 2001-02, the majority of which Reduced personnel by 29% since 2001-02, the majority of which

was in the last three years (including closing one rural was in the last three years (including closing one rural elementary school)elementary school)

Revenue dropped by $317,000; expenditures were reduced by Revenue dropped by $317,000; expenditures were reduced by $1.877 million in two years (2003-05)$1.877 million in two years (2003-05)

Reductions of $1.2 million in salaries and benefits through Reductions of $1.2 million in salaries and benefits through personnel reductions, freezes on salaries (except steps/lanes), personnel reductions, freezes on salaries (except steps/lanes), and change of health insurance plan with share of premiumand change of health insurance plan with share of premium

$700,000 in other budget reductions – most of which was $700,000 in other budget reductions – most of which was deferred spendingdeferred spending

Through 2003-05 bargaining efforts, district eliminated post-Through 2003-05 bargaining efforts, district eliminated post-employment benefits for new hiresemployment benefits for new hires

Three referendum attempts prior to dissolution order—May of Three referendum attempts prior to dissolution order—May of 2004, February of 2005, June of 2005 – “Live Within Your 2004, February of 2005, June of 2005 – “Live Within Your Means Philosophy”Means Philosophy”


Personnel ReductionsPersonnel Reductions

Staffing Changes 1998-99 through 2005-06

80.79

109.4499.85

119 118.7 112.07 113.29

85.85

0

20

40

60

80

100

120

140


Change in Revenue & Change in Revenue & Expenditures through Expenditures through 2004-052004-05

Revenue & Expenditures 2000-01 through 2004-05

$7,132,820 $6,954,627

$7,150,688 $7,124,064$6,832,918

$7,161,778 $7,373,499

$7,763,870

$7,060,453

$5,886,278

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Revenues $7,132,820.00 $6,954,627.00 $7,150,688.00 $7,124,064.00 $6,832,918.00

Expenditures $7,161,778.00 $7,373,499.00 $7,763,870.00 $7,060,453.00 $5,886,278.00

2000-01 2001-02 2002-03 2003-04 2004-05


The majority of the Board of Education believes that any further reductions in The majority of the Board of Education believes that any further reductions in personnel and in programming will be detrimental to the education of the children personnel and in programming will be detrimental to the education of the children of our district.of our district.

The Board of Education has limited class sizes at the elementary level to 25.The Board of Education has limited class sizes at the elementary level to 25.

The majority of the Board of Education believes the students deserve to have The majority of the Board of Education believes the students deserve to have elementary music and physical education taught by licensed specialists, rather than elementary music and physical education taught by licensed specialists, rather than the classroom teachers.the classroom teachers.

The majority of the Board of Education believes the students deserve art, music, The majority of the Board of Education believes the students deserve art, music, physical education, and vocational education at the middle school and high school.physical education, and vocational education at the middle school and high school.

The school district has already eliminated the elementary art teacher, elementary The school district has already eliminated the elementary art teacher, elementary guidance counselor, middle school Spanish, reduced course offerings at the high guidance counselor, middle school Spanish, reduced course offerings at the high school in Spanish (only Spanish I and II), Business Education and Technology school in Spanish (only Spanish I and II), Business Education and Technology Education, reduced the number of HS Special Education teachers with the Education, reduced the number of HS Special Education teachers with the remaining high school teacher on overload, and has moved the classroom portion of remaining high school teacher on overload, and has moved the classroom portion of driver’s education to the summer.driver’s education to the summer.

The district has no Reading Specialist, Curriculum Director, In-house School Nurse, The district has no Reading Specialist, Curriculum Director, In-house School Nurse, or Principals. The elementary and MS/HS principals have been replaced with or Principals. The elementary and MS/HS principals have been replaced with building supervisors, with the District Administrator assigned to teacher building supervisors, with the District Administrator assigned to teacher evaluations.evaluations.

What do we want for the children of our district?What do we want for the children of our district?

The ‘Perfect Storm’ – The ‘Perfect Storm’ – Dissolution OrderDissolution Order


The ‘Perfect Storm’ – The ‘Perfect Storm’ – Dissolution OrderDissolution Order Our children deserve adequate programming.Our children deserve adequate programming.

Our children deserve to have access to technology.Our children deserve to have access to technology.

Our children deserve to have updated textbooks and other Our children deserve to have updated textbooks and other educational resources.educational resources.

Our children deserve to compete in athletics and other Our children deserve to compete in athletics and other extracurricular activities.extracurricular activities.

Our children deserve to ride on safe buses.Our children deserve to ride on safe buses.

Our children deserve to have an emotionally and physically Our children deserve to have an emotionally and physically safe environment within which to learn.safe environment within which to learn.

What do we want for the children of our district?What do we want for the children of our district?


So Why Dissolution? What Do So Why Dissolution? What Do We Want for the Children of We Want for the Children of Our District?Our District?


Comprehensive School Comprehensive School Reform -Expeditionary Reform -Expeditionary LearningLearning


Youth Teaching YouthYouth Teaching Youth


Comprehensive School Comprehensive School Reform – High ScopeReform – High Scope


The Ever-So-Vital ExtrasThe Ever-So-Vital Extras


Thus, Dissolution OrderThus, Dissolution Order

Resolution to Consider Dissolution – Resolution to Consider Dissolution – June 29, 2005June 29, 2005

Resolution to Order Dissolution – July Resolution to Order Dissolution – July 11, 200511, 2005

The Stand for Adequate Education The Stand for Adequate Education

for Our Childrenfor Our Children


School District Boundary School District Boundary Appeal Board HearingsAppeal Board Hearings

7 member state panel, consisting of two 7 member state panel, consisting of two board members from large districts, two board members from large districts, two from medium districts, and two from from medium districts, and two from small districts in the state, plus deputy small districts in the state, plus deputy superintendent of public instructionsuperintendent of public instruction

The panel was to either affirm or deny The panel was to either affirm or deny dissolutiondissolution

Received testimony in August, September, Received testimony in August, September, and Octoberand October


Passage of November 8 Passage of November 8 ReferendumReferendum

$500,000 for 2005-06$500,000 for 2005-06 $750,000 for 2006-07$750,000 for 2006-07 $1,000,000 for 2007-08$1,000,000 for 2007-08 $1,250,000 for 2008-09$1,250,000 for 2008-09 $1,250,000 for 2009-10$1,250,000 for 2009-10

Additional monies will stabilize the district as we Additional monies will stabilize the district as we address issues important to the long-term address issues important to the long-term financial stability of our district and further financial stability of our district and further strengthen district educational programs.strengthen district educational programs.

With the passage of the referendum, on November With the passage of the referendum, on November 15, the SDBAB voted to deny dissolution.15, the SDBAB voted to deny dissolution.


The Fall OutThe Fall Out

A Community Divided - Philosophical A Community Divided - Philosophical Differences Differences Establish the level of desired programming Establish the level of desired programming

and obtain revenue to support programmingand obtain revenue to support programming Force level of programming to fit current Force level of programming to fit current

revenue – “live within your means” revenue – “live within your means” philosophyphilosophy

Shattering of human relationships—the Shattering of human relationships—the issues of adequate education vs. property issues of adequate education vs. property taxes has pitted neighbor against taxes has pitted neighbor against neighbor and has torn families apart.neighbor and has torn families apart.


Does the Educational Does the Educational Funding System Work?Funding System Work?

The day after the passage of the The day after the passage of the November 8 referendum, the November 8 referendum, the following question was asked by two following question was asked by two different individuals:different individuals:

““Doesn’t this prove that the state Doesn’t this prove that the state funding system works, the voters funding system works, the voters approved the referendum?”approved the referendum?”


Does the Educational Does the Educational Funding System Work?Funding System Work?

My response:My response:

No children in any other school district should have No children in any other school district should have to experience the struggles that our children have to experience the struggles that our children have had to endure for the last two years. Their intense had to endure for the last two years. Their intense worry over losing their much loved school district worry over losing their much loved school district should never have occurred. It has taken its toll on should never have occurred. It has taken its toll on their spirits. We, as adults, must work together to their spirits. We, as adults, must work together to ensure that children in other school districts never, ensure that children in other school districts never, never have to bear such weight. But today, our never have to bear such weight. But today, our students rejoice and we rejoice with them.students rejoice and we rejoice with them.


Courage of Conviction in Courage of Conviction in Turbulent WatersTurbulent Waters

The Florence Board of Education The Florence Board of Education members are to be commended for the members are to be commended for the courageous stand that they took on courageous stand that they took on behalf of the children of our district. behalf of the children of our district. They drew a line in the sand when They drew a line in the sand when they said, “No more cuts.” I have they said, “No more cuts.” I have been proud to stand with them during been proud to stand with them during this difficult time.this difficult time.

Near Death of a District: The ‘Perfect Storm’ School District of Florence County Jan Dooley,...

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