Budget and Program UpdateDecember 21, 2010

Dr. Linda E. GrobmanMr. Timothy E. Vail

Change and Transition Change and transition are related concepts - but are

NOT the same thing

Change refers to an event or strategy that causes us to redirect our behavior away from one that was previously established or valued (AKA the Radnor Way) toward alternatives that are new, different, ambiguous and unproven

Transition refers to the psychological and emotional adjustment required as we go through the change process

The New Radnor Way

The new Radnor Way requires an understanding and skill for everyone to learn, grow and succeed during transition

The new Radnor Way creates a leadership dilemma for us in an environment of rapidly occurring public policy and economic and political change

Our New Radnor Way Our stakeholders have:

• Very high expectations for results

• Low (no) tolerance for change without guaranteed results

As a school district we must:

• Face the brutal facts

• Provide a vision and a pathway for achievement

• Develop organizational resilience in the form of “new beginnings” (AKA thriving in tough economic times)

• Work together as a cohesive unit - not singular entities

Schools Brace for Continued Budget Cuts

Across the nation, school districts anticipate budget cuts for both the 2010-11 and 2011-12 school years

More than three quarters (84%) of districts described their district as inadequately funded, up from 83% reported in April 2010 and 76% in October 2009

Three quarters (77%) of districts reported a cut in state/local revenues between the 2009-10 and 2010-11 school years

Nearly four-fifths (79%) of districts anticipate a cut in state/local revenues between the 2011-12 and 2012-13 school years, compared to 15% expecting level funding and 4% expecting an increase

* Latest AASA Survey

Schools Brace for Continued Budget Cuts

The data from the survey indicate that stopgap efforts to avoid job cuts were short-lived and that reduction in force will continue to be a reality over the next few school years

Nearly half (48%) laid off personnel for the 2010-11 school year, and two thirds (66%) anticipate doing so in 2011-12

Nearly one-fifth (16%) furloughed personnel for the 2010-11 school year, and one-third (34%) anticipate doing so in 2011-12

School districts, on average, reported 512 employees, and expect to make 17.8 job cuts in 2010-11 (3.5%) and 10.3 in 2011-12 (2.0%)

www.aasa.org/content.aspx?id=17416

Basic Education• Core subject areas

• Reading/English

• Math

• Science

• Social studies

• Health and physical education

• Federal and state mandates

• Graduation requirements

• Special services

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World language options

Co-teaching

RADtv

A Radnor Education

Data Gathering

Class/district enrollment

Specialty area updates

Number/type of special ed/504 referrals

Administrator feedback

Employee group feedback

Professional development review

Staff Reductions 2010-2011

Group Reduction Type Savings

Administrators 2 retirements $218,025.00Teachers 4 retirements (1 replaced) $1,417,225.00

6 resignations

13 furloughs

1 demotionReceptionists 2 layoffs $64,311.00 Maintenance 1 retirement $75,000.00 Paraprofessionals 9.5 layoffs $240,655.00

6 resignationsDrivers 2 layoffs $37,462.00

(1 bus drivers/1 van driver)Total $2,052,678.00

Average Class Size 2010-2011

Elementary Middle High

K 18.5 6th 20.6 English 22.1

1st 19.5 7th 21.5 Social Studies 24.8

2nd 19.3 8th 20.8 Science 20

3rd 19.6 Math 21

4th 21.4

5th 22

Program Modification Update

Modification Transition

4.5 ISTs Principals are taking leadership of this process. The elementary schools are reporting a need to revisit; however, the process is still fully implemented and students are receiving appropriate services

1 Librarian High School Media Center is fully functional. Staff has been assigned a duty time to provide additional student support

2 Music Choral and instrumental participation percentages are unchanged from grades 4-12

1 Art The roster is fully covered/ no change for students

2.6 Gifted Elementary teachers providing a combination of collaborative consultation, push-in and pull-out. High-school student programs are unchanged. Middle school addressed in a separate series of slides

IST Referrals2009-2010 and YTD

School

No. of Referrals to SRT

2009-2010/ YTD 2010

No. of Referrals for Spec.-ed. Evaluation2009-2010/ YTD 2010

Ithan Elem 29 / 10 18/ 5

Radnor Elem 38 / 12 27/ 6

Wayne Elem 50 / 18 28/ 10

Radnor Middle 23 / 13 12/ 10

Radnor High 45 / 28 26/ 19

Selected RMS Gifted ProgramTransition Strategies

Gifted Team Leaders (16 team teachers)

Transition Strategy: Responsible to write GIEP for students on their teams:• Each team - 1• Each integrated team - 2

Collaborative Consultation

Transition Strategy: The literacy coach, reading specialist, and TOGL (RMS gifted coordinators) meet on a weekly basis with grade-level teams:• to discuss effectiveness of programming for gifted learners• to exchange ideas and plan instruction

Instructional Extension Period/Class

Transition Strategy: The last period of the day, for 7th and 8th graders, has been created to provide opportunities for teachers to extend/enrich learning experiences for 7th and 8th grade students across all core content areas.

Program Modification Update

Modification Transition

1 Phys. Ed. The roster is fully covered/ no change for students

2 Social Studies The roster is fully covered/ no change for students

1 Business The roster is fully covered/ no change for students

1 Science The roster is fully covered/ no change for students

2 Special Ed. All student needs are appropriately met, keeping LRE and RTII at the forefront of a full continuum of services

1 Social Worker Office of Student Services has been working with principals and counselors to keep them abreast of all community supports and programs

Program Modification Update

Modification Transition

1 Staff Developer Directors, supervisors, coaches as well as teachers , are providing staff development. Funds from the savings for the assistant superintendent will be used to support additional professional development for staff

1 ELL The roster is fully covered. After review of the roster all student needs are met

1 English The roster is fully covered/ no change for students

1 Language The roster is fully covered/ no change for students

Program Modification Update

Modification Transition

2 Receptionists Central Office – rotating schedule among support staff to cover reception area and telephoneRHS – Created security station

1 Maintenance Duties redistributed

13.5 Paraprofessionals

Ongoing monitoring by principals of student needs to ensure appropriate student services/ revisit need as appropriate

2 Drivers Use has remained constant

2 Administrators Building data teams are supported with remaining administrators. Screening protocol redesigned using Kbit and NWEA in order to make the process more efficient.

Purchasing and requisition duties dispersed within the remaining business office staff

Invest in Excellence

December 21, 2010

Ten-Year History of Tax and Expenditure Budget Increases

Year Tax Increase Budget Increase

1999-2000 4.9% 5.0%

2000-2001 n/a 5.8%

2001-2002 4.6% 6.3%

2002-2003 5.0% 7.0%

2003-2004 5.3% 5.3%

2004-2005 4.8% 5.1%

2005-2006 4.9% 7.1%

2006-2007 5.8% 6.8%

2007-2008 5.0% 6.4%

2008-2009 7.0% 3.5%

2009-2010 3.902% 3.5%

2010-2011 2.9% 1.9%19

5-Year Budget Projection AssumptionsRevenue

Real-estate taxes increase to state index level

Index level assumes 1.4% for 2011-12 and 1% each year thereafter

Other taxes increase each year in keeping with state index level

State subsidies remain flat for 2011-12 then increase by 2% hold-harmless level thereafter

State share of Social Security and retirement subsidies remain at the 50% contribution level

Federal revenues remain fairly constant at just over $600,000 after 2011-12

5-Year Budget ProjectionRevenue

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Current Real Estate Taxes $61,974,783 $62,815,101 $63,443,252 $64,077,685 $64,718,461 $65,365,646

Interim RE Taxes $315,000 $315,000 $318,150 $321,332 $324,545 $327,790

Delinquent RE Taxes $850,000 $850,000 $850,000 $850,000 $850,000 $850,000

RE Transfer Taxes $950,000 $950,000 $959,500 $969,095 $978,786 $988,574

Interest Income $300,000 $270,000 $270,000 $272,700 $275,427 $278,181

Receipts from Other LEA's $720,000 $720,000 $720,000 $720,000 $720,000 $720,000

Other Local Revenue $1,040,771 $1,040,771 $1,051,179 $1,061,690 $1,072,307 $1,083,030

Local Revenue $66,150,554 $66,960,872 $67,612,081 $68,272,502 $68,939,527 $69,613,222

Basic Instruction Subsidies $1,620,000 $1,620,000 $1,652,400 $1,685,448 $1,719,157 $1,753,540

Property Tax Relief $1,453,148 $1,450,010 $1,464,510 $1,479,155 $1,493,947 $1,508,887

Special Education $1,242,978 $1,242,978 $1,267,838 $1,293,194 $1,319,058 $1,345,439

Transportation $815,000 $815,000 $831,300 $847,926 $864,885 $882,182

State Revenue: FICA $1,412,720 $1,450,010 $1,500,740 $1,538,258 $1,576,715 $1,616,133

State Revenue: Retirement $1,525,505 $1,647,397 $2,383,528 $3,364,305 $4,401,784 $5,486,942

Other State Revenue $303,776 $472,490 $303,776 $303,776 $303,776 $303,776

State Revenue $8,373,127 $8,697,885 $9,404,092 $10,512,062 $11,679,322 $12,896,900

Federal Grants $807,107 $478,852 $607,107 $607,107 $607,107 $607,107

Balance Brought Forward $615,000 $615,000 $615,000 $615,000 $615,000 $615,000

TOTAL REVENUES $75,945,788 $76,752,609 $78,238,279 $80,006,671 $81,840,955 $83,732,228

5-Year Budget Projection AssumptionsExpenses

Salaries for 2011-12 and 2012-13 budgeted per existing labor contracts and current RTEA offer

Salary budgets for 2013-14 and beyond assume a 2.5% across-the-board increase

Medical benefits increase at 20% per year for 2012-13 and beyond PSERS – employer share increases per HB2497 of 2010 (FY2012: 10%;

FY2013: 12.15% ; FY2014: 16.65% ; FY2015: 21.15%; FY2016: 25.65%) Other expense areas will increase between 0.5-1% depending upon

account histories Debt service expenditures are actual based upon current debt service

schedules Transfers for capital expenses represent contributions to the capital

reserve fund per the 5-year capital program request formulated by the operations department

5-Year Budget ProjectionExpenses

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Salaries - 100 $37,119,102 $38,092,255 $39,235,023 $40,215,898 $41,221,296 $42,251,828

Benefits - 200

Medical Insurance Premiums $6,555,323 $8,156,859 $11,348,231 $13,617,878 $16,341,453 $19,609,743

Social Security $2,839,610 $2,914,058 $3,001,479 $3,076,516 $3,153,429 $3,232,265

Retirement $3,051,009 $3,294,980 $4,767,055 $6,728,610 $8,803,568 $10,973,883

Other Benefits $4,150,130 $4,212,382 $4,275,568 $4,339,701 $4,404,797 $4,470,869

Special Ed. & Prof. Svcs. - 300 $4,129,068 $4,167,141 $4,208,812 $4,250,901 $4,293,410 $4,336,344

Other Professional Services - 400 $2,155,584 $2,165,584 $2,187,240 $2,209,112 $2,231,203 $2,253,515

Purch. Property Svcs. - 500 $2,930,141 $2,956,437 $2,980,088 $3,003,929 $3,027,961 $3,052,184

General Supplies - 600 $2,457,056 $2,481,627 $2,494,035 $2,506,505 $2,519,037 $2,531,633

Equipment - 700 $513,925 $519,064 $524,255 $529,497 $534,792 $540,140

Dues & Fees - 800 $119,397 $122,295 $124,741 $127,236 $129,780 $132,376

Total Inst./Op. Expend. $66,020,345 $69,082,682 $75,146,527 $80,605,783 $86,660,726 $93,384,780

Debt Service $8,482,223 $7,743,620 $8,337,085 $8,341,407 $8,335,237 $8,341,737

Capital Purchases $525,000 $1,152,000 $1,242,500 $1,035,000 $1,048,000 $1,102,000

Budgetary Reserve $918,220 $342,795 $250,000 $250,000 $250,000 $250,000

TOTAL EXPENDITURES $75,945,788 $78,321,097 $84,976,112 $90,232,190 $96,293,963 $103,078,517

$76,752,609 $78,238,279 $80,006,671 $81,840,955 $83,732,228

Shortfall ($1,568,488) ($6,737,833) ($10,225,519) ($14,453,008) ($19,346,289)

Millage Impact of Shortfall (0.5164) (2.2183) (3.3666) (4.7584) (6.3694)

Unknowns for 2011-12 Budget

• State subsidies

• Grants (federal & state)

• Interest rate

• Property values

• Transfer taxes

• Interim real-estate taxes

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ExceptionsFor the 2011-2012 budget, Radnor will be exploring the possibility of applying for exceptions in the following areas:

• Cost to implement a court order

• Special education

• Retirement contributions

• Grandfathered debt

• Maintenance of local revenue per average daily membership

• Maintenance of selected revenue sources

2011-2012Budget Process Highlights

Budget Workshop: January 15

Board Meeting: January 25

Brown Bag Meeting: Feb 2 or 3

Special Board Meeting: February 8 – board adopts proposed preliminary budget

Possible Additional Workshop: March/April

Budget Workshop: May 7

Special Board Meeting: May 10 - board adopts proposed final budget

Special Board Meeting: June 14 -board adopts final budget

Thank You