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Presentation Plano Metro Rotary Club June 22, 2011

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The Financial Picture Academic Performance Future of Education Agenda

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2011-12 M&O shortfall$25 million 2012-13 M&O shortfall$36 million 2011-12 Budgeted Revenue$446 million Already includes a $26 million cut State Funding Shortfall Impact on Plano ISD

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Estimated at $141 million (includes $8 million from EduJobs) Policy requires $106 million Cash flow requires $120 million Fund Balance Reserves

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1- Do Nothing No raises No staff increases Absorb growth Fund shortfall from fund balance ($18 million) Financial Strategy Options

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2- Make additional reductions Increase secondary class sizes by 10 students per teacher over the course of the day to save $4 million Reduce insurance benefits to save $1.6 million Fund shortfall with $12.4 million from fund balance Financial Strategy Options

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3 Have a tax rate election (TRE) First 2 cents = $3.5 million per penny Next 11 cents = $1.6 million per penny Total of 13 cents = $25.1 million Financial Strategy Options

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How much does a TRE generate?

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How did Texas get to this point? Is this a cost or a revenue problem?

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Texas is 43 rd in expenditures per student Texas spends $8350/student This is $1159 (12%) less than the national average of $9509/student ( www.febp.newamerica.net/k12/TX) www.febp.newamerica.net/k12/TX Texas poverty rate is 56% above the national average Texas percentage of students on free/reduced lunches is 15% above the national average Texas percentage of English language learners is 88% above the national average Texas ranks 50 th in state expenditures per resident Does Texas spend too much?

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Are public schools inefficient?

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What happened to State Revenue? What changed?

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2006 Reduction in real estate taxes took 1/3 of school finance revenue out of the system 2006 law took all of the property wealth growth out of the education system & moved it to the states general fund. Texas Franchise Tax did not generate enough new tax revenue to replace the loss in R/E taxes. The legislature supplanted billions in education funding with one-time stimulus funds in 2009-10. Oil & gas tax income to the state has been dropping for decades. Revenue Changes

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This is NOT a cost problem. This is a revenue problem. What are we doing about it? Educating community and staff Advocating with legislators Preparing a variety of budget cutting scenarios What can you do about it? Send a clearly different message to legislators Conclusion

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Message: Return local control back to the communities that own the schools. Create a new funding system Mandated dependence upon state funding makes it difficult to maintain communitys expectations and impossible to generate local revenue to support schools. (Less than 7% of funding is controlled locally.) Give communities the chance to choose to pay more and use all of it locally to have more. Solution

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The Financial Picture Academic Performance Future of Education Agenda

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Defines several measures of quality Compares PISD to other neighboring districts Located at www.pisd.eduwww.pisd.edu Data Dashboard

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College Readiness

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Financial Indicators

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Student Assessment & Achievement

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The Financial Picture Academic Performance Future of Education Agenda

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Future of Education

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We have to educate our children differently than we were educated. Schools and universities are are still using a model that is 100+ years old. We have to transform our system into one that prepares our children for their future, not our past. We must continue to innovate even in the midst of our financial challenges. Our community expects us to thrive, not just survive. What does it mean?

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Creating Schools of Choice (i.e. academies) that will be based upon either a unique content focus and/or a different learning style. The mission of Plano ISD academies is to engage students in a rigorous, distinct project-based curriculum, inspiring creativity and empowering them to collaborate and compete globally. Leveraging the lessons learned from these Schools of Choice into the traditional system What are we doing to innovate?

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Existing Examples Demonstrated in our Schools TodayExisting Examples Demonstrated in our Schools Today New Learning ModelsNew Learning Models New CurriculumNew Curriculum Identify Todays Successes New Professional DevelopmentNew Professional Development Corporate PartnershipsCorporate Partnerships 21 st Century Skills Focus21 st Century Skills Focus Develop New Education Model(s) ElementaryElementary MiddleMiddle HighHigh Senior HighSenior High Leverage Across PISD Innovating Education

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Questions & Answers