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2014 Budget Planning

March 28, 2013

Michael E Finn, CFO

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• Overview of District spending– Data driven decision making

• Previous funding and reductions summary• Recommended reductions for FY 2014– Overview of decision process– Financial impacts– Operational overview of reduction

implementation• Revenue generating recommendations

Overview

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AUDITOR GENERAL ANNUAL REPORT ON SCHOOL DISTRICT SPENDING FY2012

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Cost Measures Relative to Peers

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Spending per Pupil

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Per Pupil Spending Comparison (percentage)

PUSD Peer State National

Administration $ 596 4.03% 23.49% 91.11%

Plant Operations $ 795 6.04% 16.73% 27.30%

Food Service $ 284 13.03% 34.51% 42.61%

Transportation $ 226 50.44% 60.18% 96.02%

Student Support $ 628 9.71% 7.96% 5.73%

Instructional Support $ 361 1.94% 20.78% 48.20%

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Student and Teacher Measures

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Financial Stress Assessment

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PREVIOUS REDUCTIONS

Reductions Previously Implemented

• DAC- 21 positions eliminated– 6 Administrative positions– 12 Classified positions – 3 Curriculum specialists

• Maintenance – 20 positions eliminated– Realized through centralized landscaping program

• Transportation – 39 positions eliminated– 15 Bus drivers– 20 Bus assistants– 4 Transportation office assistants

Reductions Previously Implemented

• School Sites -116 positions eliminated– 30 PAL assistants– 14 High school clerical positions– 28 ELL assistants– 7 High school SpED support clerical positions– 6 High school audio visual specialist positions– 21 Intervention specialists and high school

counselors/advisors– 10 Instructional Specialists

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• Retirees moved from District plan to ASRS and retiree health care reduced and phased out

• Traditional health care plan considered a buy up plan and contributions to Health Savings Accounts reduced

• Reductions made to Special Education programs• Centralized Maintenance Program established• Part-time custodians

Current Reductions for 2012-2013

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• Reductions made to PTC• Elementary special areas reduced• Revised classified staffing models for all

schools• Managed Document Services

Current Reductions for 2012-2013

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• Soft Capital - $14M• Unrestricted Capital - $8M• Building Renewal - $24M• 2% inflationary factor - $13M• Career Ladders - $4.8M

Summary of Reductions in State Funding to PUSD FY2010-2013 (4 years)

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PROCESS FOR RECOMMENDATIONS

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• Began meeting with Budget Collaboration Team in October– Held a total of 8 meetings

• Met with Association Advisory– Held final meeting to review Budget Collaboration

Team recommendations and help define operational plan and fee collections

• Study Sessions with Governing Board

Process for Recommendations

Consideration List

• Close Elementary• Block Scheduling Adjustment• Relocate PTC• Reduce Librarians to one per cluster • Reduce Nurses to one per cluster • Eliminate Pull out for Gifted• Reduce Elementary Guidance to one per cluster• Postage at HS• Transportation Efficiencies• Reductions at DAC

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FISCAL YEAR 2014 ASSUMPTIONS

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• ADM for funding purposes to increase 101 students

• Overall funding per student to remain the same– 2% increase to Base Support Level will not be

additional monies for FY 2014

Funding Planning Assumptions

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• Increases $4.45 M– ASRS to increase .8%

• District portion is .4% or $400K

– Health Care to increase $3.3M • Apply premiums collected from buy up option to

increase $1.3M• Plan remainder of increase of $2.0M in M&O expense

– Utilities to increase $500K– Additional staffing to address K-2 Prep time $250K

Expense Planning Assumptions

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OPTIONS AND DISCUSSION FOR FISCAL YEAR 2014

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• Additional $1.7 million in Function 200– Change pull out gifted to cluster model - $685K– Additional reductions in Special Ed - $1.015M

• Finalize part time custodial and centralized maintenance transition $500K

• Relocate PTC $500K

Recommended Reductions for FY 2014-Continuing 3-5 Year Plan

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• Restructure library staffing -$1.1M– Replace with classified personnel

• Eliminate elementary guidance - $568K• Reduce postage and printing by 50% - $125K• Restructure nurse staffing – Replace RN position with LPN where appropriate

through attrition

Recommended Reductions for FY 2014 –Additional Site Reductions

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• Transportation $165K– Field Trips• Continue to charge hourly driver wage but add $2.25

per mile additional charge for optional field trips• Enforce minimum of $5 per head field trip

transportation charge• Tax Credit eligible

– Close Transportation offices on Fridays during the summer

– Adjustments in staffing

Recommended Reductions for FY 2014 –Support Services Reductions

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• DAC $200K– Elimination of positions

• Food Services $500K (revenue increase)– Increased revenue from meeting new USDA regulations– Focus on A la Carte sales to 6th-8th grades– Focus on free student participation

• Building and Facilities $180K– Elimination of positions

• Information Technology $145K– Reduction in support contracts and training budget

Recommended Reductions for FY 2014 –Support Services Reductions

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In Millions 2012-2013 2013-2014 Projected Updated Projected

Funding M&O $180.90 $182.86 $183.37 CSF Carry Forward $0.00 $0.00 $0.00

CORL $4.50 $5.67 $5.67 Soft Cap $1.20 $1.20 $1.20

Contingency $7.44 $3.46 $0.09 EduJobs $0.00 $0.00 $0.00

Total $194.04 $193.19 $190.33

Expenses M&O $190.90 $188.60 $188.85 CORL $4.20 $3.30 $3.30

Soft Cap $1.10 $1.20 $1.20 EduJobs $ - $0.00 $0.00

ASRS $1.78 $0.00 $0.40Health Care $2.00 $0.00 $2.00

Utilities $0.80 $0.00 $0.50 Prop Backfill $ - $0.00 $0.00

Total $200.78 $193.10 $196.25

Reductions Staffing $5.25 $0.00 $5.68 Career Ladders $1.60 $0.00 $1.60

Total $6.85 $0.00 $7.28

Carry Forward $0.11 $0.09 $1.36

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OVERVIEW OF CHANGES TO EDUCATIONAL AND PROGRAMS

Dr. Cruz

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• Administration recommends the restructuring of the Project IDEAL Program

• New Programming Plan– Students

• Cluster students together in grade level classroom• Access to individualized learning opportunities that focus

on area(s) of giftedness• Competitions/Showcases• Affective support

– Teachers• PD for cluster teachers

Restructure of the Project IDEAL Program

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• Retain 7 Gifted Specialists– PD for cluster teachers– Testing (required by the state)– Parent meetings– Competitions/Showcases– Affective support for students– Modeling of lessons for cluster teachers

• Overall Average Savings to District: $685,000

Restructure of the Project IDEAL Program

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• Administration recommends the elimination of the Elementary Guidance Program

• New Programming Plan– High School/CCR Transitions would be covered at

the local level by a teacher on each elementary campus; • A stipend and training would be provided

– Bullying Program would also fall at the local level

Elementary Guidance Program

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• Intervention– Implement a tiered model of affective support for

students using our Psychologists and Behavior Specialists

– Develop and implement a district-wide Threat Management Team

– Add two positions to help support and coordinate intervention and outside resources

• Overall Average Savings to District: $568,000

Elementary Guidance Program

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• Administration recommends to restructure certified library program

• Programming Plan– Library will be staffed with a Library parapro– Training will be provided– Lessons will be provided– Library will still be used as a prep period for

teachers• Overall Average Savings to District: $1,100,000

School Librarian Program

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• Teachers– Due to the high number of retirements, we are

anticipating being able to absorb 95% of our talented people back into our classrooms with students

Staff Impact

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REVENUE GENERATING AND REVENUE COLLECTION

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• Develop in-house special services programs to reduce tuition out

• Expand Civic Center revenue opportunities– Glendale pool rentals

• Selling or in-kind trade of district property– Voter approval required for a sale– Northern bus yard

• Expand e-campus opportunities to students outside of PUSD– Develop program that would offer diploma

Revenue Generating Recommendations

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• All participation fees reconciled (3 ways to do so)– Paid for by participant– Paid for from designated tax credit donations or moved over from

greatest need– Waived by Principal for economic hardships

• Pay to Play– Game jerseys not provided until payment is made

• Students removed from Kinder Academy after 30 days delinquent– Credit card payment option now available for Kinder and Preschool

payments– $48K collected in February alone

Collecting the Fees

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• All classroom fees collected or reconciled through gifts and donations

• Students denied additional purchases if outstanding balance exists– Participation fees– Parking– Yearbook– Classroom fees

• Elementary debt follows to High School

Collecting the Fees

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HEALTH CARE BENEFITS

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• Bring parity to different health care plan design options

• Historically, 90% of participants do not meet their deductible– Most of those are in the Consumer Driven Plan (CDHP)– 68% of Traditional Plan Participants did not reach their

$750 deductible• Reduce Health Savings Account (HSA) contributions • Modest increase to Traditional Plan buy up• Adding an additional dental plan and moving Delta

Dental to a dental buy-up option

United Health Care

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• Consumer Driven Plans– Reduce HSA contributions from $1750 per year to

$1250 per year on the HSA2500 plan– Reduce HSA contributions from $750 per year to

$250 per year on the HSA1250 plan– Continue to contribute additional $250 for

wellness (PREP) program

United Health Care

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• Traditional Plan– Increase monthly premium for buy-up by 8.5% to $86.80 for

employee only to account for general increase in health care• Does not cover the difference between buy up premiums and plan

performance• 1375 member and $1.7M over plan

• Increase out of pocket max from $2500 per covered family member to $4500/$9000 to better match Consumer Driven Plan – Co-pays will continue to be excluded from the out of pocket

max calculation• No increase in prescription co-pays

United Health Care

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• Offer additional option to employees through Total Dental Administrators (TDA) pre-paid dental plan– Smaller network– No annual max benefit – Free to employees– Reduced family premiums and expenses

• Continue to offer Delta Dental as buy-up option– Must charge some employee premium to avoid

penalties from Affordable Health Care Act• Move to multi-tier to match health care

Dental Plan

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• CDHP 1250 or 2500 = $0.00 (no change)• Traditional plan = $86.80 (+$6.80)• Prepaid Dental = $0.00 (new benefit)• Delta Dental buy up $ TBD – EBT Meeting on March 26th

Employee Only : Monthly Premiums for FY 2013-2014

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• CDHP 1250 = $ 326.20 (no change)• CDHP 2500 = $ 197.11 (no change)• Traditional plan = $ 601.42 (+$47.11)• Prepaid Dental = $ 9.28 (new benefit)• Delta Dental buy up $ TBD– EBT Meeting on March 26th

Employee Plus Spouse: Monthly Premiums for FY 2013-2014

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• CDHP 1250 = $ 260.96 (no change)• CDHP 2500 = $ 157.69 (no change)• Traditional plan = $498.49 (+$39.05)• Prepaid Dental = $ 11.55 (new benefit)• Delta Dental buy up $ TBD– EBT Meeting on March 26th

Employee Plus Child(ren): Monthly Premiums for FY 2013-2014

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• CDHP 1250 = $ 619.79 (no change)• CDHP 2500 = $ 374.50 (no change)• Traditional plan = $1064.58 (+$83.40)• Prepaid Dental = $ 13.60 (new benefit)• Delta Dental buy up $ TBD– EBT Meeting on March 26th

Employee Plus Family: Monthly Premiums for FY 2013-2014

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• Added a 6 month coverage policy with a 5 day waiting period– Completely optional coverage– Complements the sick-leave bank coverage

• Eliminated need for District provided Interim Disability Coverage saving average of $200k per year

Short Term Disability Changes-Voluntary

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• No changes to other voluntary benefits– Vision– AFLAC

• Life Insurance– Change provider to ING– 20% reduction in premiums– Guarantee issue enrollment of $150k during open

enrollment

Other Voluntary Benefits

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QUESTIONS