DISTRICT BUDGET PRESENTATION QUESTIONS & ANSWERS 2014 - - PDF document

DISTRICT BUDGET PRESENTATION QUESTIONS & ANSWERS

2014

MAINTENANCE & OPERATIONS (M & O) OVERRIDE QUESTIONS

• 1. What is a M & O budget override?

Arizona State Law allows school districts to increase their budgets up to 15% of the Revenue Control Limit (RCL) with voter

• approval. The RCL is a state formula that determines how much funding school districts receive from the state each year.
• 2. Why does a school district ask for voter approval to exceed its operating budget?

Exceeding the operating budget allows the district to provide a higher quality education, offer more programs and services to better meet the needs of students, and adequately prepare children to be successful, contributing members of our community.

• 3. How long has the GUHSD override been in effect?

GUHSD has successfully passed override elections since 1990, enabling the district to provide a higher standard of education for students. Thanks to the support of community members, GUHSD students do exceptionally well, and the district is recognized state-wide and nationally for its high student achievement and outstanding curricular programs.

• 4. What happens if the override is not renewed?

If the override is not renewed, the district will have to cut $7.2 million from its budget.

• 5. How does the override affect the tax rate?

The override election will not affect the tax rate because voters authorized the district to exceed its budget for the last 24

• years. The percentages are already reflected in the tax rate.

The average homeowner pays approximately $56 a year for GUHSD’s override measure.

• 6. How much money will taxpayers save if the override is not called for or fails?

A taxpayer with an assessed property valued at $100,000 would save approximately $19 the first year the override fails. They would see similar decreases to their tax rate for the following two years.

• 7. Are other districts in Maricopa County supported by a Maintenance and Operations override?

Yes, all major districts are under overrides. They include Glendale Union, Deer Valley, Dysart, Peoria, Tolleson, Glendale Elementary, Washington Elementary, Phoenix Elementary, Phoenix Union, Scottsdale, Tempe Elementary, Tempe Union, Chandler, Gilbert, Mesa, Higley, and Kyrene Elementary.

CAPITAL OVERRIDE QUESTIONS

• 1. What is a capital outlay budget override?

Arizona State Law allows school districts to increase their capital budgets by an amount up to 10 percent of the Revenue Control Limit (RCL) with voter approval. The RCL is a state formula that determines how much funding school districts receive from the state each year.

• 2. Why is GUHSD considering a capital outlay override election?

School funding in Arizona is set by a statutory formula, but in recent years due to state budget deficits, funding to public schools has been cut. State cuts to the Glendale Union High School District capital budget have totaled more than $21 million since 2009. This includes cuts to the capital budget, which provide funding for things such as computers, technology, equipment, furniture, school buses and other vehicles, and facilities’ maintenance and renovations.

• 3. Will a capital outlay affect the tax rate?

The capital outlay override will increase the tax rate. A $5 million capital outlay override would cost the taxpayer with a home assessed at $100,000 approximately $35 a year.

• 4. Will running two elections (M & O override and Capital outlay override) simultaneously affect the outcome of the district’s

current M & O override election? Historically, capital outlay override elections have been more difficult to pass. In part this is due to the complicated language required on the ballot, and the fact it would increase taxes. For this reason, there may be rationale not to place both of these issues on the same ballot. ALTERNATIVE REVENUE GENERATING QUESTIONS

• 1. Has the district considered using solar applications as a way to save money?

Solar installations require application of tax credits. Since school districts do not pay taxes, a third party must install, own, and maintain the solar application. School districts then lease the installation for 10-20 years. When Glendale Union High School District last looked at these programs, we were unable to get a commitment by the third party to guarantee a net savings to the district.

• 2. What is the district doing to obtain alternative sources of revenue?

The district collects approximately $1.5 million through alternative revenue sources annually. These revenues currently are used to augment programs and have benefited out students in athletics, fine and performing arts, and various clubs and

• rganizations throughout our schools.

While alternative revenue can generate funds that can be used to augment funding, it is unlikely that sufficient amounts can be generated to make any discernable difference in the district tax levy or to provide the necessary resources to continue

• verride programs in lieu of an election.
• 3. Has the district considered charging students to participate in athletics and extra-curricular activities?

GUHSD may be the only remaining district in Arizona that does not charge for students to be involved in athletics and extra- curricular activities. This stems from our belief that all students should participate and is evident by our high percentage rate

• f students involved in extra-curricular activities. It is not the desire of the district to place challenges in front of

students/families to be involved at their school. However, financial stresses may result in the district charging students to participate.

ADDITIONAL QUESTIONS

• 1. How much money would the district save by eliminating district testing and professional development workshops?

Glendale Union High School District is nationally recognized for its learning system. Our expenditures in the classroom lead both our peer districts and the state average. We continue to be data driven and student centered in our approach to learning, which has ranked GUHSD among the top 10 districts in state according to the Arizona Department of Education.

• 2. How does the override impact Title I funding?

During these difficult financial times, every dollar the district receives needs to be evaluated to ensure it is being used the best way possible. This may result in changes of priorities for federal funds like Title I. In some cases, grant funds may be directed to areas of the budget to help minimize or offset budget shortfalls. However, it is unlikely that sufficient grant funds will come available to offset the need for override dollars.

• 3. How will the override election affect the special education classrooms?

The district’s special education budget comes under the same constraints as our regular budget. We are asking our special programs office to review its budget and be prepared to make similar budget cuts to special education.

• 4. GUHSD spends significantly more in the classroom than peer districts and state averages. The auditor general’s report

showed a 2% difference. How much is this in dollars and cents? According to the auditor general’s report, GUHSD spends 56.2% of its budget in the classroom. This is 2.1 million dollars more than the state and peer district averages.

• 5. Does the override get distributed to both our Glendale and Phoenix schools?

The override is equally distributed among all nine of our high schools. Geographic city boundaries have no bearing on the distribution of district budgets.

• 6. Are you able to ask voters to support an override again in 2015 if it is not called for or fails in 2014?

According to Arizona statutes and with board approval an override election can be called the following year.

• 7. Will there be any changes this year?

Since 2008, the district has cut approximately 74 positions, reduced supply budgets by 20%, frozen salary increases and frozen capital expenditures. Specific budget cuts to be incurred if the M & O Override is not called for or if it fails have not yet been identified. A citizen’s committee is currently studying the district budget and will recommend actions to the governing board at its April 17, 2014 board meeting.

• 8. How was the citizen’s committee selected?

Parents, students, community members, teachers, support staff employees, and administrators from all nine schools volunteered to serve on the citizens committee. Representatives from Citizens for Quality Education co-chair the committee.

• 9. Will there be more community meetings?

Additional community meetings are scheduled as follows: March 10, 2014 Apollo High School, 8045 N 47th Ave, Glendale 6:30pm Auditorium March 11, 2014 Moon Valley High School, 3625 W Cactus, Phoenix 6:30pm Auditorium March 12, 2014 Sunnyslope High School, 35 W Dunlap Ave, Phoenix 6:30pm Auditorium

• 10. What can I do to help?

We all can help by staying informed regarding the district’s need for the override. Whether you are a parent, community member, or employee of the district, we are all representatives and the main communicators within our community. As individuals we can be involved with the citizens committee to get this very important issue passed. For timely updates follow them on Facebook at www.facebook.com/CitizensforQualityEducation or visit their website at www.CitizensforaQualityEducation.com.