LAPS 2011/12 Proposed Budget

April 21, 2011

Long-range Financial Planning Committee Members

• Original Members Gene Schmidt Paula Dean John Wolfe Melanie McKinley Kevin Honnell Ellen Mills Ken Johnson Kim Selvage Kelly Myers Mike Schick Shawn Hailey

• Expanded MembersGerry WashburnRex KilburnSandy WarnockJennifer GuyJenny Diesburg-

LathropWyatt DumasSally ShockeyAnita BoshierDebbie ElliotKen HolmesCheryl Smith-EckeDawn JalbertKeith Rosenbaum

Stephanie RittnerEreyna BenelliNaomi UngerDawn JonesJenn SchmiererKate KetteringLisa MietzSuzanne LynneRonda HarmonVicki NelmsJeff SargentDean Obermeyer

How Schools Are Funded in NM

• State Equalization Guarantee (SEG)– Based on 80-day and 120-day student count from previous

year– Has been reduced for the past two years.

• Was reduced in February of 2010 after the 2009/2010 budget had already been in effect for over 7 months!

• Was reduced in August of 2010 after the 2010/2011 budget had been approved and was in effect for 1 month.

• Federal stimulus funds are being used to offset the largest part of the reduction. These go away in 2011/12.

– We are anticipating a reduction of $600,000 for the 2011/12 school year.

Additional LAPS Funding

• $8 million from DOE–Has remained the same since 1999–Continues through 2014

Lease-revenue Funds

• In 2007, Board decided to make a concerted effort to discontinue the use of lease-revenue funds for operational expenses•Have been used the last two years to help

offset the cuts in the SEG.• Should net approximately $1.5 million per

year IF the leases continue (can be cancelled at any time with 6 month notification).

What About Bond Funds?

• Bonds–Must be approved by the community every

4 Years.–Can only be used for large capital expenses

(bricks and mortar).–Can NOT be used for operational costs.

Referendum

–Must be approved by the community every 6 Years. –Can only be used for building

maintenance/repair, technology hardware, other large expenses.–Can NOT be used for operational costs.

Funding Summary

Funding Source Uses

State Equalization Guarantee (SEG) Can be used for any expenses…always one year behind compared to enrollment

DOE $8 million Can be used for any expenses…has remained the same since 1999…no cost of living adjustments!

Leased Funds Can be used for any expenses…can be cancelled at any time with 6-months notice

Bond Funds Can only be used for large capital expenses (bricks and mortar). CANNOT be used for salaries!

Referendum Funds Can only be used for building maintenance/repair, technology hardware, other large expenses. CANNOT be used for salaries!

Operational Funding for 2010/11

• SEG: $23,564,227• Stimulus: $937,955• DOE: $8,000,000• Miscellaneous: $470,814• Leased funds: $897,000

NOTE: For 2010/11 an additional $179,000 was spent on teacher/staff bonuses and an additional $256,800 will be spent for renting the administration building. These amounts come from the leased funds.

Direct Student Costs (Salaries and Benefits)

$22,483,613 66%

Administration Costs (Salaries and Benefits)

$4,587,141 14%

Maintenance/ Trans-portation Costs (Salaries

and Benefits)2627611

8%

Other Costs (Supplies/ Training/ Travel/ Utilities)

$4,171,631 12%

2010/11 Budgeted Expenses

Direct Student Costs include costs for classroom teachers, specials teachers, nurses, counselors, OTs/PTs and IAs

All shades of blue indicate personnel costs.

Utilities, communication services, and liability insurance accounts for approximately $1.5 million of the “Other Costs”.

How is the money spent now?

Budget Process

• Create an Austerity Budget• Identify Additional Program Elements and

Costs• Develop a Method for Evaluating Programs• Evaluate Programs• Identify Recommendations• Public Meeting• School Board Approves Budget

Creating the Budget

Just legal – funded by SEG

Essential for Student Achvmt

Important to meet district goals

Adds desirable elements

Makes LAPS best in the land

• Only contains those program elements required by law.

• Very bare bones budget.• NOT HOW WE WANT OR PLAN TO RUN OUR

DISTRICT!!

What is an Austerity Budget?

• Athletics/Activities• Smaller class sizes/teaching loads• Elementary Specials (Art, Music, PE, Librarians)• Middle School librarian• Nurses/Counselors/Principals at every site• IA’s (except kindergarten IA’s)• Adequate technology support• Adequate maintenance and custodial support• Reading/Math/Technology Specialists• Lots of others…too many to list!!

What is the Austerity Budget Missing?

• The sobering reality?– The Austerity Budget would require approximately $24.4 million

of funding.– The SEG (including Federal Stimulus Funds) is providing us with

$24.5 million in 2010/11!– In other words, the state barely gives us enough money for the

minimum required by law.– This begs the question, “Is New Mexico really funding an

adequate education for students across the state?”• Fortunately we still have the $8 million from DOE.

Without it, our students’ educational future would be bleak indeed!

Austerity Budget

Program Evaluation

• Six Surveys– Elementary Programs– Middle School Programs– High School Programs– Athletics, Technology, Transportation, and Facilities– Student Services, Curriculum, and Assessment– Central Office (Superintendent/Board, Business Office,

Human Resources)• 171 Individual Program Elements in All• Rubric that asked people to think about the difference

each program element made to the educational process.

Survey Participation

• Over 1,000 different email addresses requested the surveys.

• Between 55% and 68% of the people that requested the surveys completed them.

• Good participation from all categories and all schools.

Survey Results

• Results broken into six different groups– All Responses– Teacher Responses– Parent/Former Parent Responses– Site Staff Responses– Other Staff Responses– LRFPC Responses

Survey Results

• Calculation of “fifths”– For each group, the results were evaluated by

taking the top score, subtracting the bottom score, and dividing the resulting number into five parts.

– Then the 171 program elements were placed into five groups based on their scores.

Did the Surveys Make a Difference?

• YES!!– The surveys identified the “keep” line for our most

valued programs!– We now know how the $8 million should be spent.

Recommendation for Spending the $8 Million

• Top two groups (or 40% based on score) included 54 program elements based on the “All Responses” category.

• The total for these two groups is slightly more than the $8 million from DOE.

• These were some of the most expensive program elements.

• This was considered the “keep” line.• We need to look at providing some of these

services in a more cost efficient manner.

• Athletics/Activities and Athletics/Activities Director• Class size/common planning/teacher load• Coordinator of Technology• Counselors and nurses at every level• Custodians• Elementary IAs (including reading IAs) • Elementary principals• Elementary specials including band/orchestra • ELL Staffing

What’s Included in the Recommendation?

• Facilities Supervisor• Instructional Supplies/Software• Middle school assistant principal• Network administrator• School Resource Officers (SROs)• Substitutes• Tech Support• Transportation Mechanics and Supervisor• Miscellaneous others

Recommendation (page 2)

• 117 program elements in the other three groups.

• All of these are being evaluated for potential elimination/reduction.

• These tended to be lower cost elements.• Many of these will be kept through the use of

lease money at the discretion of the Board.• In the 2010/11 budget, the Board elected to use

~$900,000 from leased funds.

Other Layers?

Help from the County

• The county can help through the reduction of fees.

• Main Ideas– Aquatic Center Use ($44,000)– School Resource Officer ($88,000)– Warehouse Workers ($122,000)

• Total: $254,000

Since we are currently anticipating a $600,000 cut, this help would make a HUGE difference!

2011/12 Budget RecommendationProgram Element 2011/12 Budget 2010/11 Budget

Elementary Teachers 88 88

LAMS Teachers 32 32

LAHS Teachers 64 64

Elementary Specials 11.1 11.1

Librarians 6 6.8

Elementary Band/Orchestra No change

Principals 10 10

Site Secretaries 7 7

Attendance Clerks 7 7

Counselors 11 11

Nurses 8 8

Regular Ed IAs/Reading IAs/Dept. Secretaries

46 46

2011/12 Budget RecommendationProgram Element 2011/12 Budget 2010/11 Budget

Superintendent 1 1

Assistant Sup 1 1

Business Office 12 11

Human Resources 6 5

Specialists (Math, Curriculum, etc.)

3 5

Technology Staff 12 12

Athletics/Activities $240,000 $240,000

Maintenance 17 19

Custodians 31 31

Professional Development $0 $29,950

Supplies $414,900 $461,000

2011/12 Summary of Proposed Cuts

• Overall– 10% cut in supplies (~$46,000)– Professional Development (~$29,950)– Library Technical Services (~$42,000)– Mental Health Vouchers (~$17,000)

• Elementary– Subscriptions (~$3,500)– Instructional Coach (~$66,000)– Shared Librarian (~$45,000) [net savings including an additional full-time library aide]

• Middle School– Cafeteria (~$35,000)– Educational Technologist (~$33,000)

• High School– Educational Technologist (~$33,000)

• Athletics/Activities– No Additional Cuts

• Technology– No Additional Cuts

• Student Services– No Additional Cuts

2011/12 Summary of Proposed Cuts

• Facilities– No Additional Cuts

• Transportation– No Additional Cuts

• Curriculum/Assessment– K-2 MAP testing (~$8,300)– 0.2 FTE Reduction (~$12,000)

• Superintendent’s Office/School Board– PAC-8 (~$2,000)– Memberships/Training/Travel (~$10,000)– Lobbyist (~$11,500)

• Business Office– KRONOS everywhere but maintenance (~$4,850)– AESOP at elementary level (~$4,000)– Energy Manager (~$10,000)

• Human Resources– No Additional Cuts

2011/12 Summary of Proposed Cuts

• Three changes of note:– Assets Manager for Leased Facilities: ~$60,000

increase– Grant Writer (Re-allocation of part of curriculum

position): No change in cost– HR Secretary (Re-allocation of Facilities Secretary):

No change in cost• Net Reduction:– ~$353,100

Questions?

Just legal – funded by SEG

Essential for Student Achvmt

Important to meet district goals

Adds desirable elements

Makes LAPS best in the land