COMMUNITY FORUM ON THE STATE OF THE

DISTRICT FINANCES

NOV. 21, 2009

Dr. Roger Goudy MLSD Superintendent

“This affects the very fabric of the community”

“This is not just my problem, it is all of our problem.”

“It is important to know the tobacco money will be gone at the end of the year.”

“This has been a great turnout…In all my years of education, I have not seen this kind of turnout for an event like this.”

“We truly want this to be a community forum.”

Ed Szabo, MLSD Treasurer

CLICK ON SEPARATE LINKS BELOW FOR:

5 YEAR FORECAST, FISCAL HISTORY, FISCAL HISTORY PERCENTAGES

“The numbers havechanged but theproblem is still there.”

“The Taxation District is still generating money in Madison, just less than we did before.”“If we don’t get

a waiver it will cost us an additional $400,000 per year.”– Regarding

implementing State mandated All-Day Kindergarten in 2011

“Revenues are in a decline and expenditures are rising.”

Questions & Answers for Ed Szabo

Q. What are we giving up in materials reserve waiver?

A. Textbooks, but there is no guarantee waiver will be given. The forecast includes

textbooks/supplies & working down reserve we already have. The forecast still showsthe replacement schedule. The District spends what it needs to spendbut the State says we should be spending more - the difference is kept in reserve. The numbers are minimal when considering capital expenditures.

Q. What is the value of the land not being used?

A. All lands are being used. Rent and property taxes are paid by lessees.

Q. How much does one mil raise?

A. It generates $400,000, but that is going down to $375,00 in the

triennial update.

Q. Kindergarten Waiver: chances for waiver and how long?

A. Not easy to get for financial or space reasons. We are hoping for a delay next year.

There is no guarantee we can receive a waiver. House Bill (HB) #1 also includes lower class sizes in the primary grades & becomes an unfunded mandate. Neither space nor financial resources has been considered by our elected officials.

Q. Have we thought about partnering with another school district and buying used

textbooks & utilizing them in the district?

A. It has not been discussed at this point

Q. State funding issues impacting many districts. How has that been dealt with?

A. Over 300 districts projecting negative balances. When schools are in financial trouble an

area coordinator will tell the district to come up with a plan to balance the budget. The district then goes through the steps of fiscal watch, state loan program, state takeover etc. If a Fiscal Emergency is declared a District cannot make payroll & must go to the bank & ask for loan. The bank turns the district down, opening the door to go to state & borrow from them. I begins a cycle of borrowing and repaying.

Q. What do you propose to offset negative balance?

A. Run a tight ship as to how we spend money. Have not had a new levy since early 1990’s.

We have had income raised through appraisals, open enrollment etc. Looking at cuts down to state minimum-base, the District does not need the extras such as PLTW to get to the state minimum.

Q. How do you express need to community?

A. We are going to get there.

Q. How do we manage the deficit after 2011? Is actual deficit $5 Mil.?

A. Looking beyond 2011.Yes, State says we should have a balance of 15 to 20 % but that is

not realistic. We will manage with what have as long as balance is not zero or below.

Q. Totals for expenditures-what type of detail can you provide in terms of specifics?

A. We have that detail on the revenue and expenditure report.

Q. How much are the costs? Salary, benefits, utilities?

A. Do not have figures at forum but we can possibly attach details to the minutes and can

have them when we meet again. This impacts the community and ultimately the board is going to have to vote on decisions. They can go for cuts, a levy or somewhere in between. Dr. Goudy said he did not know of many other options, there is no help on the way from the State.

Q. Is it true 80 % of expenditures is salary and benefits?

A. It is 80-85% and the remainder has very little discretionary dollars. The District is about

half in control of such things as supplies, equipment and textbooks.

WHAT YOUR FRIENDS &

NEIGHBORS HAD TO SAY…

Note: Direct quotes appear in blue & scribed comments are in black

“Now is the time for you to share ideas.”- Dr. Goudy

Trista Warren•Said she was passionate about a positive community. It is time to hear from positive people. •Commented that Madison has an effective district & it can be an excellent one•Said entire family is in Madison & support the community. We vote for the community.•Said it was important not to fall behind neighboring communities because families research schools when deciding where to live•Commented that the District needs to prepare our children for 21st century skills. Continued support of schools is vital.•No one wants high student teacher ratios. 43.6% of our teachers have master degrees. Teachers are the greatest resource for educating our children• Said the community & District are a team. Urged public to vote on all issues that support our community and schools .

“To prosper we need to remember the kids ARE our community…The strength and quality of our community is directly related to the strength and quality of our schools.”

Jerry Klco•Has several children in Madison schools doing well• Suggested the trustees, administration, school board & village officials kick in one-half percent of the income that they & other public officials make and put it in a scholarship fund to help keep our brightest in Madison. Mr. Fisher said he’d be happy to present the scholarships at Senior Night.

Duane Frager•Said he has had many conversations with key people• Suggested looking into levies then passing and delaying collection a couple years•Also, suggested passing a levy in parts, not all at once

“The State says we are not supporting schools the way we should… but the State would see that we ARE supporting the schools and we will not lose State support. “

Joe Vulcan•Surprised by the number of people that turned out• Commented that no one comes to board meetings• Advocated more involvement in school board meetings• Suggested coming up with ways to remind people to come to meetings: magnetic refrigerator sticker, send home notes with students, recognition for students who attend, auto call to all homes, announcements on local radio stations & website• Board has to make cuts in spending; too top heavy administration & supervision in the district

“If the Board doesn’t look at cuts, no levy will be passed.”

Cheri Mracek•Commented that residents should look at cuts they can make in their own budgets to help fund the schools before having to make cuts as a District

Jeff Cole•New resident, has worked five years part time in District •Came to community because Madison dollar for dollar is excellent value• Commented that it is a matter of communication and residents being involved•Need to share more detail of expenditures •Need more involvement from community.Need to work in tandem to solve the problem•Suggested coming to decisions together versus not being part of the process •Said he is honored to work with the people in this District

“We can’t stick our head in the sand…You (the District) have waved the red flag and it is up to us to respond.”

Deb Richardson•Parent of two HS students and works at RBE•Commented that the Perry BOE facilitated their JED with Perry Village. Why not try it here?•Said people are vested in the community. The teachers & support staff in Madison have vested interest in community.•Questioned supplemental contracts on the November agenda. Nine were negotiated with MEA & awarded for a total of $32000. Said some concessions is a start in the right direction.

Justin Curry, Class Pres. 2011•Said a good job is being done but it must better•Asked what percentage of revenue comes from businesses? Ed Szaboanswered that the tax base vs. residential valuation is 80-85% with business accounting for 15-20%. Szabo said the tangible personal property tax is being phased out. There are no taxes based on revenues of businesses.•Commented that we live in a Capitalist society & we need to lobby the State to show what we can get done•Said this is a national issue & the public needs to go to the government & demand assistance to be able to educate children

“We can’t use old tactics to solve new problems.”

Shannon Kriegmont•Life long Madison Resident, raised here, graduated here, teacher here and raising family here •Commented cutting lunch ladies, PLTW & other people will impact kids negatively •Encouraged the community to step up and fill the hole the State has dug for the

District

“I can’t imagine what this District will look like if we only use tough love cuts to solve the problem.”

Mike Legaza•Commented that community needs to decide what kind of Madison we want to see in the future to solve current problems•Said if you look at communities who have not made investments, you will they start to decay and community will follow•Suggested maintaining diligence about costs, but also making an investment in the schools •Said community needs to make investment in infrastructure and activities as a start. That is a beginning.•Suggests we need to maintain what we have and not strip down

“At some point you hit a bottom line and must invest in your school system…Where do we want to be? Do we want our community to deteriorate because we didn’t invest?”

Leah Fike•Said she loves teaching and living in wonderful community• Commented that from a personal standpoint teachers come to work because we love the kids and are going to be there for the kids•Encouraged the community to be there for the kids and to find a way to make it work for the kids despite tough times

Gordon Musgrove•Explained he was a supporter of education•Commented that Secondary schools need to do more in engineering and we need to support math• Noted 10-year taxing, cutting & spending, all old methods, will not work• Suggested major changes were needed, not sure what they are, but need to look at doing things differently.•Said not everything has to be local or community based. Cannot tax community to make up the difference, at some point there will be nothing left. We will just keep pushing it down the road.

“We need significant changes. You have

to change your thinking.”

Julie Fellow•Said she has six children including one graduate, one on way to graduating, two in elementary school and two coming up. •Commented that Madison is home for my family•Explained she works for a non-profit serving low income families. •Said parent involvement is why she is here. Due to her experiences, she believes bringing education to parents in a meaningful manner is very important. •Commented preaching to choir because those attending are all vested here. •Suggested reaching out to those not here and letting them know what the needs of the schools & community are. She suggests providing them with research they will value & understand, as well as comparisons between local school systems.•Said she was on board with a levy but added the important thing was sharing info with those who are not in attendance at the forum. She noted that much conversation needs to be had.

Roy Blalock•Cornerstone Brewery Owner. From Madison and a business owner.•Commented that people are attacking aproblem before it comes a problem•Said the community is going to grow whether you like it or not. Other businesses will come in and the population will grow•Urged the community to not be afraid of growth. Said Madison will be fine and the community will make it.•Suggested investing in the core of the community which is the school system

“The potential has already been set in place…don’t be afraid of it.”

Sheryl Oravetz•22 year resident. Has had five children in the Madison schools• Commented that the community can look at this as a way to pull together as a community & expand communication. Need to accentuate the positive not the negative. •Suggested coming up with new ideas, revamping old ideas & spending entertainment dollars on fundraisers within community.•Said life is not fair, but it is what we make of it

“In times of crisis people can either pull apart or come together…we need to work closer together.”

Sue Maroney•Said she was pleased with positive comments•Commented that growth is a big factor of us needing to be tapped with levies•Said the community needs to look at a future forecast•Suggested working hard to fill empty storefronts. Said some businesses are succeeding & some growing. •Encouraged everyone to stand by the community – including township, village & schools -and work on growth.•Encouraged others to spend their money in the community and look for investment opportunities to improve the quality of life in Madison such as reopening the bowling alley

“We need to provide growth…we need to grow the community.”

Laura Diak•24 years in community & has high school daughter; two foreign exchange students•Commented that our place in the world is not just not our community•Observed Scotland has redone their entire school system•Said Spanish students were surprised at schools & said it was not what they expected

“We have to think of ourselves and how we fit in the global community.”

145 community members

registered for the Nov.21

Forum!

17 of your friends & neighbors stood up & offered their

suggestions & opinions

COME JOIN YOUR FRIENDS &

NEIGHBORS AT THE SECOND FORUM

SATURDAY DEC. 12TH

10 A.M.

MADISON HIGH CAFETERIA

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