+ Budget Forum Presentation April 8, 2019 + Drug Coverage and - - PowerPoint PPT Presentation

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Budget Forum Presentation

April 8, 2019

+ Drug Coverage and Budget Deficit

 Our prescription drug costs have escalated substantially.

The trend as of now is a 33% increase compared to budgeted costs.

 The draft budget includes a 35% increase in prescription

drug costs.

 Recent billings indicate that this trend is continuing and may

escalate further.

 Changes in health benefits are a mandatory subject of

collective bargaining

 The next few slides show our coverage and cost data

+ Drug Coverage for Active and Retired

Employees and % Contributions

Unit Active Retired Total % recent % earlier % earlies t VTA 88 38 126 18 18 18 UEV 61 39 100 20 11 10 VAA 7 5 12 20 15 15 Dist. Office 4 5 9 20 11 10 Dist. Admin. 8 8 20 15 10 Totals 160 95 255

+ Budgeted Cost of Prescription Drug

Coverage in the 18-19 School Year Unit District share in dollars % of total district cost VTA $534,000 49.7% UEV $441,000 41.0% VAA $39,500 3.7%

• Dist. Office

$32,300 3.0%

• Dist. Admin. $28,000

2.6% Total $1,074,800

+ Actual Drug Costs and Reserves

 Drug costs have exceeded the budget by $588,000 in this fiscal

year

 Drug reserves at the beginning of this school year were

$681,000

 Drug reserves as of June 30 (the end of the fiscal year) are

projected to be under $100,000

 The Assistant Superintendent has formulated the following plan

to hopefully allow the drug plan to stay solvent for 19-20:

 Take $250,000 from the NEHIT Health Reserve (this is for Blue

Shield Health Insurance products not drug)

 Take $40,000 from the Tax Certiorari Reserve  Use unappropriated fund balance above 4% at the end of the

fiscal year and apply it to the drug reserve

+ Longer Term Implications of the Escalation in Drug Costs

 The rapid escalation in drug costs is likely to continue  The current trend is unsustainable and will continue to erode

• ur educational programs and opportunities for students

 Changes in drug coverage will take several months to a year

to put in place and are subject to collective bargaining

 Therefore, it is imperative to make reductions in the budget

for 19-20 so that we will hopefully have sufficient reserves to cover drug costs until a new plan is in place

+ Recommendations for the 19-20 Budget

 A late retirement provides a net savings of $26,500  Our district did not receive any additional state aid in the

adopted state budget

 Reducing the general fund subsidy to the school lunch program

provides a savings of $10,000

 We recommend that all reductions presented at the budget

forum on March 27 (with a change to the aide position recommended) should be implemented so that we can hopefully have sufficient reserves to fund the drug program for the 2019- 20 fiscal year

 We must begin the process of getting a new drug plan in place

for the 2020-21 school year

+ Proposed Reductions Part I

Potential Reduction Savings Implications Eliminate HS 0.2 Math/0.8 TA position $40,800 A section of math consolidated Reduce Family and Consumer Science Teacher to 0.7 $31,300 Eliminate HS FACS – not required by regulations. Reduce French Teacher to 0.8 $13,300 Begin phasing out French; do not offer to 7th graders for 19-20. Another option – do not offer French 4 in 19-20. Eliminate 1.0 Elementary Teacher $70,400 Enrollment in 19-20 Kdg. is 89 students as

• f now. 4 sections with reduction = 22/23

per class as of now Eliminate the SRO program $65,000 The SRO was introduced as a pilot and is not sustainable due to budget Reduce BOE budget lines $3,000 BOE conferences and mileage eliminated

+ Proposed Reductions Part II

Potential Reduction Savings Implications 0.4 HS Social Studies Teacher $23,800 Sections consolidated 0.4 HS ELA Teacher $24,500 Sections consolidated 0.4 MS-HS Dean $27,500 Principals cover responsibilities Eliminate Business Office Software Program & Telecomm Contract $14,000 Cover functions another way Reduction in Professional Development funding $20,000 Less PD for our staff Reduction in Summer Curriculum Work $10,000 Less curriculum development Reduce Athletic Uniform Purchase $4,000 Longer replacement cycle

+ Proposed Reductions Part III

Potential Reduction Cost Savings Implications Eliminate District Funded Field Trips $14,200 Less opportunities for students Eliminate ES Science TA Position $26,700 Less instructional support for science Eliminate MS-HS Library TA $24,900 Less support for students Reduce Late Buses to 2 days per week $4,000 Less after school transportation for students Eliminate Minds On Program $4,200 Less options for students Eliminate Arts in Ed. program $8,600 Less options for students Eliminate MS 1 to 1 Aide $36,700 No longer required