Meeting one June 2018 - CCSD 89

Meeting one June 2018

1

Welcome! ●  Please introduce yourself to others at your table. ●  Please put on a name tag ●  Complete the information on the yellow sign-in sheet

●  Meeting will start promptly at 7 p.m.

The reason we are here

‘Our 89’ co-chairs Mike Lullo

Steve Neurauter

Why we are here ●  After March presentation from Finance Committee, Board of Education committed to ending deficit spending. To determine how to reach that goal, the Board asked committee to get feedback from the community. The Board asked to hear more about what residents value in their school district.

●  The “Our 89” community engagement campaign was formed.

Facilitating team TEAM ROSTER Community chairs

Mike Lullo (GC parent), Steve Neurauter (PV parent)

Community members

Melissa Bartoli (BG parent), Dr. Penny Belke (resident), Sara Boucek (resident), Tina Chivardi (WF parent), Alicia Cieszykowski (resident), Kellie DeLeon (PV parent), Leah Dimler (WF parent), Rachel Jeschke (PV parent), Mari Luangrath (GC parent), Victor Moore (AV parent), Kalani Reelitz (BG parent), Hope Serritella (PV parent), Donna Skibbe (PV parent), Greg Smaistrla (GC parent), Diane Tye (BG parent), Becky Waldbusser (PV parent), Carrie Zimmer (WF parent)

District representatives

Matt Hanley (communications), Maureen Jones (Assistant Superintendent for Finance), Dr. Bob Langman (Assistant Superintendent for Learning), Jude Locke (AV teacher), Barb Peterson (PV principal), Dr. Emily Tammaru (Superintendent),

Board of Education members

Jay Lerch, Beth Powers

Tonight’s work ●  ●  ●  ● 

7 - 7:45 p.m. Introductions and presentation 7:45 - 8 p.m. Activity 1 8 - 8:30 p.m. Activity 2 8:30 - 9 p.m. Report out

Community engagement calendar Session

Date / time

Location

Topic

Session 1

Tuesday, June 5 7- 9 p.m.

Glen Crest Middle School

Sharing information, community conversation

Session 2A *

Tuesday, June 19 7-9 p.m.


Examining options, discussing solutions, providing feedback

Session 2B *

Saturday June 23 9-11 a.m.


Examining options, discussing solutions, providing feedback

● 

The June 19 and June 23 meetings will cover similar topics. The district scheduled the June 19 and June 23 meetings at different times and days of the week to accommodate more schedules.

Website / email / social media ●  Website: www.ccsd89.org/our89 ●  Email: [email protected]

●  Facebook: www.facebook.com/ccsd89 ●  Twitter: @CCSD89 ●  YouTube: Search “CCSD89” on YouTube

Questions and comments ●  Fill out “I have a question/ comment” form ●  Email: [email protected] ●  Ask questions during small-group time

Sign-in sheet

Financial presentation

Dr. Emily K. Tammaru Superintendent

Tonight’s conversation ●  The district’s past efforts to cut costs and preserve educational programming, as well as the challenges ahead. ●  The options explored by the Superintendent’s Finance Committee. ●  The current work, and the next steps.

School finance: a reinvestment in our community

Excellent outcomes under financial pressure

TOP 92nd 86th 85% 10 PERCENT IN THE NATION FOR ACADEMIC ACHIEVEMENT

PERCENTILE OR ABOVE IN READING AT ALL GRADE LEVELS

PERCENTILE OR ABOVE IN MATH AT ALL GRADE LEVELS

OF STUDENTS GO TO HIGH SCHOOL AT OR ABOVE GRADE LEVEL

Source: spring 2017 MAP scores; high school placement

A community investment For every $1 invested in schools…

$

$$$$$ $$$$$ $$$$$ $$$$$ ...the effect on home values is 20 times as great Source: National Bureau of Economic Research

http://www.nber.org/digest/jan03/w9054.html

Current financial reality -  The district is operating a deficit budget. -  The district will have deficit budgets for the next five fiscal years, and beyond. -  After five years of cuts, the district’s rising enrollment means the district must make critical decisions. The Finance Committee - composed of parents, residents, board members, and staff - was tasked with finding ways to address this issue.

Current revenues Federal funding: 1.79% State funding: 7.45%

Total Revenues = $28.2 million

Local funding: 90.76%

Current expenditures Food service contract 1.28%

All other 12.29%

All other includes: Tuition (special education) 5.96%

Technology Instructional materials Insurance Legal services Utilities

Custodial and transportation contracts 6.36%

Salaries and benefits 74.12%

Total expenditures = $29.4 million

January 2011 financial projections $14,309,081 $13,005,166

$13,380,954 $13,622,355

$13,514,816

$13,217,541 $12,214,337 $10,953,808 $9,100,549

$6,781,002

$7,201,255

$6,930,805 $5,923,274

$6,598,372

$6,777,838

$6,028,274 $5,031,376

$3,819,599

$3,649,495 $1,692,054

($760,041)

($3,839,024)

Focus on fiscal responsibility 2008 and 2011 finance committees Five-year projections showed the district would have to borrow by 2015 Finance Committee convened to explore options, engage with the community. ○ 

○ 

Community asked for cuts and efficiencies that did not: ■  Directly impact classrooms ■  Conflict with the district’s core values ■  Contradict the goals in the strategic plan Community asked that the district not pursue a tax-rate referendum at that time. ■  District’s last tax-rate increase was in 1986.

Result: From 2009 to 2016, the district made nearly $3 million in cuts, reductions outside the classroom.

Cuts and reductions since 2009 $894,862: Adjusted substitute pay, eliminated overtime, reduced vacation/retirement benefits $491,430: Concessions from staff, reduced staff, eliminated support staff $439,989: Eliminated five secretarial positions, fewer classroom aides, reception positions reduced $380,816: Efficiencies in energy, bus routes, print services $340,306: Reduced budgets for school supplies, field trips, software, professional development $268,800: Administrative cuts, reduced salary increases, reduced outside consultants $102,500: Reduced energy administrator stipend, re-bid custodial contract

Total cuts and reductions: $2,918,703

January 2011 financial projections $14,309,081 $13,005,166

$13,380,954 $13,622,355

$13,514,816

$13,217,541 $12,214,337 $10,953,808 $9,100,549

$6,781,002

$7,201,255

$6,930,805 $5,923,274

$6,598,372

$6,777,838

$6,028,274 $5,031,376

$3,819,599

$3,649,495 $1,692,054

($760,041)

($3,839,024)

Results of cuts $14,309,081 $13,005,166

$6,781,002

$13,380,954 $13,622,355

$13,514,816

$7,201,255

$6,930,805 $5,923,274

$6,598,372

$13,858,375

$14,413,812

$6,513,436

$6,630,353

$14,355,204

$6,977,598

$14,413,936

$14,854,570

$6,731,945

$6,803,474

$14,380,522

$6,508,043

Current financial projections

Current financial projections

Current financial projections FY 2013 $16 million $14 million $14,355,204

FY 2014

FY 2015

FY 2016

FY 2017

$14,413,936

$14,584,570

$14,380,522

$14,272,365

FY 2018

FY 2019

FY 2022

FY 2023

$12,250,348 $11,516,331

$10 million

$10,378,490 $9,519,638 $6,731,945

$6,803,474

$6,508,043

$6,264,762

$7,925,163 $5,242,906

$6 million $4 million

FY 2021

$13,203,864

$12 million

$8 million $6,977,598

FY 2020

$3,694,801

$3,203,791

$3,310,383

$4,072,989 $2,890,915

$2 million

$3,134,917

$2,598,836

$2,160,418 $1,321,901

$809,717 $89,611

$0 ($2 million)

($937,764)

($4 million)

($932,457)

($2,008,395) ($3,525,468)

($6 million)

($5,423,708)

Fiscal year end balance

Estimated low point

Fund balance, less early taxes


FY 2014

FY 2015

FY 2016

FY 2017

$14,413,936

$14,584,570

$14,380,522

$14,272,365

FY 2018

FY 2019

FY 2022

FY 2023

$12,250,348 $11,516,331

$10 million

$10,378,490 $9,519,638 $6,731,945

$6,803,474

$6,508,043

$6,264,762

$7,925,163 $5,242,906

$6 million $4 million

FY 2021

$13,203,864

$12 million

$8 million $6,977,598

FY 2020

$3,694,801

$3,203,791

$3,310,383

$4,072,989 $2,890,915

$2 million

$3,134,917

$2,598,836

$2,160,418 $1,321,901

$809,717 $89,611

$0 ($2 million)

($937,764)

($4 million)

($932,457)

($2,008,395) ($3,525,468)

TODAY

($6 million) Fiscal year end balance

Estimated low point

($5,423,708)



FY 2014

FY 2015

FY 2016

FY 2017

$14,413,936

$14,584,570

$14,380,522

$14,272,365

FY 2018

FY 2019

FY 2023

$11,516,331 $10,378,490 $9,519,638 $6,731,945

$6,803,474

$6,508,043

$6,264,762 $5,242,906

$6 million $3,694,801

FY 2022

$12,250,348

$10 million

$4 million

FY 2021

$13,203,864

$12 million

$8 million $6,977,598

FY 2020

$3,203,791

$3,310,383

$2,890,915

$2 million

BORROWING FROM NEXT $4,072,989 SCHOOL YEAR

$7,925,163

$3,134,917

$2,598,836

$2,160,418 $1,321,901

$809,717 $89,611

$0 ($2 million)

($937,764)

($4 million)

($932,457)

($2,008,395) ($3,525,468)

TODAY


Estimated low point

($5,423,708)



FY 2014

FY 2015

FY 2016

FY 2017

$14,413,936

$14,584,570

$14,380,522

$14,272,365

FY 2018

FY 2019

FY 2023

$11,516,331 $10,378,490 $9,519,638 $6,731,945

$6,803,474

$6,508,043

$6,264,762 $5,242,906

$6 million $3,694,801

FY 2022

$12,250,348

$10 million

$4 million

FY 2021

$13,203,864

$12 million

$8 million $6,977,598

FY 2020

$3,203,791

$3,310,383

$2,890,915

$2 million

BORROWING FROM NEXT $4,072,989 SCHOOL YEAR

$7,925,163 BORROWING FROM BANKS

$3,134,917

$2,598,836

$2,160,418 $1,321,901

$809,717 $89,611

$0 ($2 million)

($937,764)

($4 million)

($932,457)

($2,008,395) ($3,525,468)

TODAY


Estimated low point

($5,423,708)


Why does CCSD 89 have a deficit budget? ●  Costs outpacing revenue ○  Insurance, transportation, contractual obligations ○  Increasing enrollment ■  ■  ■ 

Since 2012, district enrollment has grown by 16 percent Projections: district will grow by another 13 percent in next four years District will have added almost 600 students

●  Investing in students and opportunity ○  ○  ○  ○ 

Extending the school day for all students Adding STEM education Giving more access to technology Developing resilient, confident learners

Enrollment projections 2,457 2,402 2,335 2,259

2,168

2,142 2,086

2,073 1,994

1,956 1,944

1,968 1,910

1,913 1,865 1,872

Enrollment, financial projections Enrollment

Fiscal year-end balance

Estimated low point

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Fund balance less early taxes

Questions the Finance Committee studied ●  ●  ●  ●  ●  ● 

How do CCSD 89 property taxes compare to others? How financially efficient is CCSD 89? Are we paying teachers too much? Can we operate with fewer teachers? Do we have too many administrators? Can we lower expenses by pooling our resources (and purchasing power) with other districts? ●  Would consolidation help CCSD 89? ●  Are there other ways to raise funds?



Low tax rate Glenbard feeder district tax rates (2016) 6.1507%

6.1419% 4.8165% 3.6171%

3.3789%

District 41

CCSD 89

District 44

District 93

District 15

District 16

4.1201%

Each additional 0.10 costs a homeowner $33 annually, per $100,000 home market value

CCSD 89 has the lowest tax rate among the Glenbard elementary districts.



Fiscally responsible spending Operational spending per student $14,457

$13,954

State average

District 41

District 93

District 15

District 44

$12,973

$12,386

$12,340

CCSD 89

$14,692

District 16

$15,111

CCSD 89 has the lowest operational costs among Glenbard feeder districts, and is below the state average.

Data from fiscal year 2017, Illinois State Report Card. Instructional Spending Per Pupil includes only the activities directly dealing with teaching of students or interaction between teachers and students. Operating Spending Per Pupil includes all costs for overall operations, including Instructional Spending, but excluding summer school, adult education, capital expenditures, long-term debt payments.



Attracting excellent teachers Teacher starting salaries (Bachelor’s Degree, 1 year experience)

$47,157

District 16

$48,284

CCSD 89

$49,351

District 41

$49,494

District 44

$52,201

District 15

District 93

$53,534

CCSD 89 teacher salaries are comparable to surrounding school districts.

Attracting excellent teachers Teacher salaries (Master’s, 15 years experience) $88,842 $79,424

$75,000

District 16

$79,747

District 41

District 93

District 44

District 15

$81,512

CCSD 89

$90,911

CCSD 89 teacher salaries are comparable to surrounding school districts.



Average class size comparison CCSD 89 classes are larger than state and local districts at most grade levels.

Staffing, enrollment comparisons: 2011 to 2018

174 more students

2,168 students

1,994 students

6.2 fewer teachers 160.6 teachers

154.4 teachers

Since 2011, CCSD 89 has 174 more students and 6.2 fewer teachers.

2011 2018 2018 CCSD 89 classes are larger than state and 2011 local districts at most grade levels.



Low administrative costs ONE administrator serves... CCSD 89

218.7 students

District 41

210.1 students

District 15 Statewide District 44 District 16 District 93

201.8 students 189.6 students 176.8 students 143.8 students 134.1 students = 10 students

CCSD 89 has the fewest administrators per student of any of the Glenbard elementary districts and is below the state average.



Cost reductions through pooled purchasing ●  Insurance benefits ○  ○ 

Medical and dental: Educational Benefits Cooperative (209 members) Property, liability, workman's compensation: Collective Liability Insurance Cooperative (181 members)

●  Utilities: Illinois Gas Cooperative (IGC) ●  Transportation ○  ○ 

Regular education: Five districts bid together (D87, D41, D16, D15, CCSD 89) Special education: Four districts (D15, D16, D44, CCSD 89)

●  Special education: Cooperative Association for Special Education (7 Glenbard districts) ●  Office supplies: Federal purchasing contract through Office Depot ●  Legal services: Glenbard Property Tax Appeals Cooperative (D87, CCSD 89, D41, D44)

Other options considered District consolidation ○  Not a solution to immediate issue ○  Could be detrimental to CCSD 89 students and homeowners

Establish CCSD 89 foundation ○  District will consider forming its own foundation, however… ■  A foundation is not a solution to the current issue of deficit spending ■  Inconsistency: funds raised would be dependent on donations ■  Deficit greater than what could be raised

Finance Committee conclusions CCSD 89 cannot continue to operate with a deficit budget ●  Depletes fund balance ○ 

Requires issuing short-term debt (tax-anticipation warrants) against future tax revenue

●  Negatively impacts district’s finance and bond ratings, resulting in higher interest rate on borrowed money, worsening deficit ●  Does not provide a long-term solution for future planning and sustainability

Option A Increase revenues to maintain comprehensive, highquality educational programming ●  Avoids cuts to programs that directly impact students which are not consistent with the CCSD 89 strategic plan ●  Instructional supports at elementary and middle school ○  Reinstatement of some positions previously eliminated ■  Example: Instructional coaches for teacher and student support ○  Support staff for students (intervention support to address differing needs) ○  Professional development for teacher training

Glenbard feeder district referenda District

Operating rate referenda

Marquardt 15

2003 (.67)

1993 (.30) Queen Bee 16

2003 (.46)

1988 (.60)

Option B Reduce programs and increase fees ● 

● 

Reductions totalling $1.2 million in first year (2019-20) including, but not limited to: ○  Increased class size ○  Further administrative cuts ○  Gifted/Challenge services ○  Band/orchestra ○  Physical education reduction and health ○  Social work services ○  Library media center staff ○  Full-day kindergarten Increase registration fees ○  Additional fees could generate approximately $40,000

After three years, the district would have to consider additional cuts.

Board of Education recommendation March 2018: Board recommends expanding the discussion to gather feedback on the community’s educational values. Upcoming: ●  June: Community meetings to present information, gather feedback ●  June: Community surveys to gather feedback ●  July: report findings to Board ●  August: Board decision

A community investment For every $1 invested in schools…

$

$$$$$ $$$$$ $$$$$ $$$$$ ...the effect on home values is 20 times as great Source: National Bureau of Economic Research

http://www.nber.org/digest/jan03/w9054.html

Finance: a reinvestment in our future

Small-group work activity

Work activity Select a recorder and facilitator ○  Recorder responsibilities: ■  Complete the information on the group’s green worksheet

○  Facilitator responsibilities ■  Facilitate discussion ■  Keep group focused/on task ■  Report out group’s information

Small-group worksheet ●  Information on green worksheet should reflect consensus/general agreement of group members ●  Monitor progress to complete the worksheet in allotted time

Work activities

Activity one Community values 15 minutes

Work activities

Activity two Identifying priorities 30 minutes total 5 minutes: filling out individual white sheets 15 minutes: filling out group green sheet 10 minutes: identifying top four priorities

Small-group work activity: Reporting out

Thank you! Don’t miss one of the second sessions: 7-9 p.m., Tuesday, June 19 Glen Crest Middle School

9-11 a.m., Saturday, June 23 Glen Crest Middle School

Meeting one June 2018

64