Supt. Report to Supt. Report to NSSDNSSD

March 11, 2011March 11, 2011

SHS AuditoriumSHS Auditorium

Purpose of TodayPurpose of Today

Present updated NSSD District and Present updated NSSD District and School Board GoalsSchool Board Goals

Superintendent Goals 2011-12 Superintendent Goals 2011-12

Discuss current budget situation of Discuss current budget situation of NSSDNSSD

District Goals 2009-12District Goals 2009-12

Ensure that Every Student Achieves Ensure that Every Student Achieves Measurable Progress and Personal Measurable Progress and Personal Growth Each YearGrowth Each Year

Provide the Best Facilities and Provide the Best Facilities and Learning EnvironmentLearning Environment

Involve the Community in our Involve the Community in our Schools to Maintain the Public TrustSchools to Maintain the Public Trust

Be Viewed by the Community as a Be Viewed by the Community as a Unified DistrictUnified District

Board Goals 2011-12Board Goals 2011-12

Maintain programs in a sustainable Maintain programs in a sustainable way, while striving to keep as many way, while striving to keep as many people employed as possible, people employed as possible, because of our commitment to doing because of our commitment to doing what is best for kidswhat is best for kids

Celebrate the successes of the Celebrate the successes of the District and communityDistrict and community

Routinely monitor the effectiveness Routinely monitor the effectiveness of District programs and services in of District programs and services in order to better serve kidsorder to better serve kids

Superintendent Goals Superintendent Goals 2011-122011-12

Immediate Goal: Immediate Goal:

Adopt a budget for 2011-12 that Adopt a budget for 2011-12 that preserves core District functions and preserves core District functions and allows for a strong and sustainable allows for a strong and sustainable educational system which strikes a educational system which strikes a balance between measurable balance between measurable student progress in core subjects student progress in core subjects and preserves as comprehensive a and preserves as comprehensive a program as possible.program as possible.

Immediate Goal cont’dImmediate Goal cont’d What I’m shooting for:What I’m shooting for:

As comprehensive a program as possibleAs comprehensive a program as possible As full a school year as possibleAs full a school year as possible

Helps employees, gets us to our true costs (the first Helps employees, gets us to our true costs (the first step in sustainability), and is a measuring stick in the step in sustainability), and is a measuring stick in the communitycommunity

Unallocated ending fund balance of $600,000Unallocated ending fund balance of $600,000 A leaner budget without padding will require this A leaner budget without padding will require this

because of our cash accounting system because of our cash accounting system We must have cash available to meet our payroll until We must have cash available to meet our payroll until

property taxes come in in Novemberproperty taxes come in in November Sustainable funding level over the 2011-13 Sustainable funding level over the 2011-13

biennium and beyondbiennium and beyond Note: this list represents objectives in a general Note: this list represents objectives in a general

sense. There will be trade-offssense. There will be trade-offs

Superintendent Goals Superintendent Goals 2011-122011-12

Intermediate Goal: Intermediate Goal:

Adopt a 10-year Long Range Master Adopt a 10-year Long Range Master Facilities Plan that meets the minimum Facilities Plan that meets the minimum requirements of ORS 195.110 through a requirements of ORS 195.110 through a process committee, which will involve process committee, which will involve community members and district personnelcommunity members and district personnel Plan will cover 15-20 years Plan will cover 15-20 years All stakeholders present in balanced numbersAll stakeholders present in balanced numbers

(parents, staff, community members with no ties to school)(parents, staff, community members with no ties to school) Will begin process in September 2011Will begin process in September 2011 Interested? Contact meInterested? Contact me

Superintendent Goals Superintendent Goals 2011-122011-12

Intermediate Goal: Intermediate Goal: Adopt Community Schools Approach for Adopt Community Schools Approach for

NSSD SchoolsNSSD Schools Indicates our commitment to better link with our families Indicates our commitment to better link with our families

and other community resourcesand other community resources We want to:We want to:

Look for opportunities to extend the school day for further Look for opportunities to extend the school day for further learning or enrichmentlearning or enrichment

Look for opportunities to extend the school yearLook for opportunities to extend the school year Look for opportunities to partner with other government Look for opportunities to partner with other government

agencies who serve our familiesagencies who serve our families Create opportunities for adult learning in our schoolsCreate opportunities for adult learning in our schoolsStaff ideas and initiatives are welcome Staff ideas and initiatives are welcome ~This is an area of opportunity for funding (grants) and to ~This is an area of opportunity for funding (grants) and to

engage community and get them in buildingsengage community and get them in buildings

Superintendent Goals Superintendent Goals 2011-12 2011-12

Building Goal: Building Goal:

Each building will further implement Each building will further implement Response to Intervention/EBISS System Response to Intervention/EBISS System

Long-Term Goal:Long-Term Goal:

Five Outstanding Schools within the Five Outstanding Schools within the NSSD that create future citizens, NSSD that create future citizens, parents and an educated work force parents and an educated work force that contribute to our communitiesthat contribute to our communities

BudgetBudget Oregon Economic Forecast March 2011Oregon Economic Forecast March 2011

(Office of Economic Analysis)(Office of Economic Analysis) Improvement in job growth, but still weak Improvement in job growth, but still weak

compared to other recoveriescompared to other recoveries ““Risks” to forecastRisks” to forecast

Downside: Fuel costs, housing industry drags economy Downside: Fuel costs, housing industry drags economy Upside: possible increase in consumer confidence and Upside: possible increase in consumer confidence and

spending could lead to greater employment growth spending could lead to greater employment growth than projected; Stronger demand for Oregon’s business than projected; Stronger demand for Oregon’s business products nationally and internationally create more products nationally and internationally create more hiring than anticipatedhiring than anticipated

Upside risks exist because of Oregon’s Income Tax Upside risks exist because of Oregon’s Income Tax “Kicker” Law that requires that if revenues exceed “Kicker” Law that requires that if revenues exceed projections by 2% then it must be refunded to taxpayersprojections by 2% then it must be refunded to taxpayers

Overall: employment will rise slowly in 2011 before Overall: employment will rise slowly in 2011 before picking up steam in 2012picking up steam in 2012

BudgetBudget Long-term threats to K-12 school funding in Long-term threats to K-12 school funding in

the Statethe State Drop in real estate market values may lead to Drop in real estate market values may lead to

assessed value declines and lost property tax assessed value declines and lost property tax revenue (currently approx. $4.7 million to NSSD)revenue (currently approx. $4.7 million to NSSD)

Projected PERS increases in future biennium (s) Projected PERS increases in future biennium (s) ~Our payments to PERS will increase next year by ~Our payments to PERS will increase next year by $580,000 to just over $2,000,000; Costs anticipated $580,000 to just over $2,000,000; Costs anticipated to rise slowly through 2017-18, then accelerateto rise slowly through 2017-18, then accelerate

Declining share of state general fund from 44% to Declining share of state general fund from 44% to 38% in last six years (Corrections, Adult and Family 38% in last six years (Corrections, Adult and Family Services)Services)

Current NSSD income is $16.5 million (approx.)Current NSSD income is $16.5 million (approx.)

BudgetBudget

Immediate Challenges for NSSD this yearImmediate Challenges for NSSD this year NSSD has no cash reserves (last $600,000 allocated NSSD has no cash reserves (last $600,000 allocated

in 2009-10 was the last unallocated reserve)in 2009-10 was the last unallocated reserve) Federal Stimulus goes away this year ($714,000 in Federal Stimulus goes away this year ($714,000 in

this year’s budget)this year’s budget) $580,000 in increased PERS costs must be accounted $580,000 in increased PERS costs must be accounted

for next yearfor next year Reliance on carryover in subsequent year’s budgetReliance on carryover in subsequent year’s budget No bills to increase revenue are currently under No bills to increase revenue are currently under

consideration in the Oregon Legislature or at the consideration in the Oregon Legislature or at the Federal LevelFederal Level

BudgetBudget How we have approached our How we have approached our

spending this yearspending this year1.1. Save as much money as possible in the general Save as much money as possible in the general

fund to prepare for 2011-12 budgetfund to prepare for 2011-12 budget2.2. Understand completely the impact and Understand completely the impact and

possibilities created by the loss of Stimulus possibilities created by the loss of Stimulus Money (navigate different Federal and State Money (navigate different Federal and State Requirements for each pool of funds)—Requirements for each pool of funds)—essentially, how can these funds help us in the essentially, how can these funds help us in the general fund?general fund?

3.3. No new staff—we have transferred to meet No new staff—we have transferred to meet emerging needs (Green zone assistant time emerging needs (Green zone assistant time analysis)analysis)

4.4. 6 days for certified, confidential and 6 days for certified, confidential and administration, 2 days for classifiedadministration, 2 days for classified

BudgetBudget

Preparing next year’s budgetPreparing next year’s budget We are reviewing all 300-600 budgets We are reviewing all 300-600 budgets

(equipment and supplies)(equipment and supplies) – Estimate of savings we will create by the end of Estimate of savings we will create by the end of

this yearthis year– What we can survive on next yearWhat we can survive on next year– All departments and schools receive this scrutinyAll departments and schools receive this scrutiny

Identify every other fiscal option that can Identify every other fiscal option that can save money in the general fundsave money in the general fund

Roll grade cohorts forward and project Roll grade cohorts forward and project necessary staffing levels for 2011-12 necessary staffing levels for 2011-12 school yearschool year

– We will clarify these in detail at building meetings We will clarify these in detail at building meetings in April/Mayin April/May

BudgetBudget

Watching the legislature, planning Watching the legislature, planning for a funding levelfor a funding level Governor’s budget calls for $5.57 billion Governor’s budget calls for $5.57 billion

given to us 52% in 2011-12, 48% in given to us 52% in 2011-12, 48% in 2012-132012-13

((Reminder: this year we are funded at $5.73 through Reminder: this year we are funded at $5.73 through the use of Stimulus)the use of Stimulus)

House and Senate Ways and Means House and Senate Ways and Means Budget set to come out in next two Budget set to come out in next two weeksweeks

BudgetBudget

We are working on three funding We are working on three funding scenarios. The funding levels are scenarios. The funding levels are $5.57, $5.65 and $5.7 billion$5.57, $5.65 and $5.7 billion

We will look at all funding levels on We will look at all funding levels on a basis of 49% 2011-12, 51% 2012-a basis of 49% 2011-12, 51% 2012-1313

Funding using 49%-51%Funding using 49%-51%

Why will we use 49-51 split of funds Why will we use 49-51 split of funds instead of a 52-48 splitinstead of a 52-48 split A 52-48 split will result in an 8% cut in A 52-48 split will result in an 8% cut in

funds in the second yearfunds in the second year The number already assumes some The number already assumes some

revenue increases in year tworevenue increases in year two We will need to anticipate costs rising We will need to anticipate costs rising

in the second year, and a 49-51 allows in the second year, and a 49-51 allows for a 4% increasefor a 4% increase

BudgetBudget Our current projected shortfall for 2011-12Our current projected shortfall for 2011-12

Funding LevelFunding Level ShortfallShortfall

$5.57 B$5.57 B $1.85 million$1.85 million$5.65 B$5.65 B $1.67 million$1.67 million$5.7 B$5.7 B $1.58 million$1.58 million

Includes all costs for full school yearIncludes all costs for full school year Does not include current year’s savings or next year’s Does not include current year’s savings or next year’s

cuts.cuts. Includes a $600,000 ending fund balance (cash system Includes a $600,000 ending fund balance (cash system

reserve)reserve) Includes projected savings from teacher retirements, loss Includes projected savings from teacher retirements, loss

of SES VP, classified hourly cutsof SES VP, classified hourly cuts Does not include possible fuel cost increasesDoes not include possible fuel cost increases

BudgetBudget April-May 2011: Budget Meetings in April-May 2011: Budget Meetings in

each school with staff each school with staff Include our ending fund balance projectionInclude our ending fund balance projection Budget savings in 10-11 budgetBudget savings in 10-11 budget Staffing levels by buildingStaffing levels by building

Quarterly Revenue Forecast in MayQuarterly Revenue Forecast in May May-June: NSSD Formal Budget ProcessMay-June: NSSD Formal Budget Process June 30, 2011-We must by law adopt a June 30, 2011-We must by law adopt a

budgetbudget

What we as a district can What we as a district can dodo

Advocate for K-12 education to your Advocate for K-12 education to your legislators! legislators! Remind them that our share of the Remind them that our share of the

general fund has been in constant declinegeneral fund has been in constant decline April 15 go to the Capitol—No SchoolApril 15 go to the Capitol—No School

Continue to give your great effort to Continue to give your great effort to save all that you cansave all that you can

Check out assumptions and ask Check out assumptions and ask questions of mequestions of me

Thank you for the great Thank you for the great work that you do! work that you do!

Questions or Comments?Questions or Comments?