Long-Term Financial Planning Initiative Board Overview by - - PowerPoint PPT Presentation

Long-Term Financial Planning Initiative

Board Overview by Superintendent Burmeister September 12, 2017

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Engagement Innovation Leadership Partnership Perseverance

Initiative Elements

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2017-18 Long-Term Financial Planning Initiative

Future Planning & Development Advocacy Board Development of Compensation Philosophy Special Education Internal & External Audit Reserve Policy Study by School Services Annual Employee Total Compensation & Benefit Report Classified Classification Study Health Benefits Review Committee Community Engagement Campaign

Engagement Innovation Leadership Partnership Perseverance

Compensation Philosophy

The Board’s 2017-18 calendar purposefully provides time for the Board to develop a high-level vision for compensation that will address ongoing budget pressures, while also protecting “good faith bargaining” and the role staff play in negotiations. ◼ Board Working Sessions to Discuss & Develop (Closed): ◼ November 21 ◼ January 23 ◼ March 27 ◼ April 17 ◼ Public Board input sessions (Open): October 24 and February 6 ◼ Public Presentation of both Long-Term Financial Plan and Compensation Philosophy (Open): June 5, 2018

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Reserve Policy Study

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In spring of 2017, the Board received a recommendation from the Superintendent on behalf of the F&A Committee that a separate reserve be created to address MPCSD’s share of the state’s potential unfunded pension burden. The Board expressed legitimate concerns about the separate reserve, but the potential unfunded pension burden remains. Tonight, staff recommends approval of a School Service study to offer Board and staff recommendations on how to address the changing political and financial landscape in California including information about what other similar districts are considering to address the concern.

Engagement Innovation Leadership Partnership Perseverance

Special Education Audit

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In 2016, the Public Policy Institute of California recommended that the state move its Special Education funding to the LCFF rather than keep it as a separate program managed by area SELPA’s. It is unclear whether the proposal has any traction with the Governor, Assembly, or SBE. However, the idea presents serious concerns for community funded districts like MPCSD. For this reason and the fact that SpEd services are necessary and costs are harder to control, staff will present two separate contracts to the Board for an internal programming audit and an external financial audit of SpEd services to allow the district to articulate staffing and service standards, as well as compare our program’s efficiency and delivery to districts across the state.

Engagement Innovation Leadership Partnership Perseverance

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Community Engagement

The addition of the PIO has already served to increase community engagement. The Communications Advisory Team is expanded and ready to tell our story and gather input from

• community. Efforts to engage, inform, and gather input

specifically related to Long Term Financial Planning include:

◼ Public Board input sessions (Open): October 24 and February 6 ◼ Monthly “Sups On” tent at Menlo Park Farmer’s Market ◼ Town Hall January/February timeframe ◼ Real Estate Agent Outreach and Education ◼ 3 X Community Newsletters and 1 X Community Report (annually) ◼ Annual online community feedback survey ◼ FAQ and Media Literacy website ◼ Comparables Dashboard Prototype

Engagement Innovation Leadership Partnership Perseverance

Annual Compensation Report

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During the Measure X campaign, Superintendent, Erik Burmeister, met with a small group of community members who suggested that we adopt a practice commonly used in the private sector. The idea is to provide each staff member with an Annual Compensation Report that details the real cost of all salary and benefits provided them each year. The theory behind the provision is that employees can better assess the commitment the district is making to their

• verall compensation and that information can inform employees, individually

and collectively, when providing feedback about budget priorities. MPCSD HR will pilot a Total Compensation Report to be delivered to staff along with their W-2’s in February each year. Compensation Reports will include: ◼ Total salary before taxes ◼ Cost of medical and health benefits ◼ Cost of retirement pension paid for by district on behalf of employee ◼ Stipends for extra duty, certifications, and advanced degrees ◼ Cost of educating staff children who live outside of the school district ◼ Cost of Professional Development

Engagement Innovation Leadership Partnership Perseverance

Classification Study

MPCSD will conduct Phase 2 of a potential multi-part classification study to review the job tasks, job descriptions, and pay structure of many of our classified positions. The study will provide recommendations for potential efficiencies, needed additional support, and comparable pay. With this information, we can more accurately plan for the current and future classified needs of the district.

Phase 1: District Office administrative assistants, 2016-17 Phase 2: Site Office Managers, administrative assistants, Health assistant, 2017-18 Phase 3 and beyond: TBD

Classification studies have been conducted by Professional Assistance Team of Palo Alto. 2017-18 contract was approved by Board at August Board meeting.

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Health Benefits Review

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Chief Business and Operations Officer, Ahmad Sheikholeslami, and Human Resources Manager, Joan O’Neill, will gather and lead a Health Benefits Review Committee (Superintendent Advisory) beginning this year. The purpose of the Review Committee will be to analyze the current Health Benefits market and the forecast for future changes, review the benefits currently provided to us by CalPERS at current and future anticipated rates, compare those benefits and costs to alternative plans, and survey MPCSD employees for their priorities when it comes to Health Benefits. Members of the team will include: 1. CBOO, Co-Chair 2. HR Manager, Co-Chair 3. Director of Fiscal Services 4. Site Administrator 5. 3 MPEA Reps 6. 3 CSEA Reps 7. One Board Member

Engagement Innovation Leadership Partnership Perseverance

Planning & Development

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The rapidly changing national, state, and local impacts on our school district require a thoughtful strategy to ensure that MPCSD’s needs are communicated and advocated for at all levels. With the support of the Facilities, Construction, and Long-Range Planning Superintendent’s Advisory Team, Superintendent Burmeister will continue to focus some of the organization’s energy on the communication, planning, and advocacy necessary to move the district’s interests forward. These include, but are not limited to: ◼ Understanding, communicating, and, to the extent possible, changing the impacts of the Prop 13-era property tax levels that disadvantage MPCSD. ◼ Advocating for optimum mitigation of Menlo Park residential development’s lopsided impacts on MPCSD (as compared to other MP districts). ◼ Mitigating impacts of Stanford University’s non-profit status within the housing market in MPCSD. ◼ Planning for district facility growth and improvement, including unique potential facility purchase opportunities. ◼ Responding to community interest in creating equity among area districts.

Engagement Innovation Leadership Partnership Perseverance

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Future...

All elements of the Long-Term Financial Planning Initiative will begin during the 2017-18 School Year. No element is fixed to another, nor are they time limited. Each element will be allowed to continue to its necessary end. New elements may be added as need

• arises. A report of the status of each element will be

provided to the Board as necessary. A status update report of the collective initiative will be shared with the Board at the June 5, 2018 meeting.