Meeting one June 2018 1 Welcome! Please introduce yourself to - - PowerPoint PPT Presentation

Meeting one June 2018

1

• Please introduce yourself to others at your table.
• Please put on a name tag
• Complete the information on the yellow sign-in sheet
• Meeting will start promptly at 7 p.m.

Welcome!

The reason we are here

‘Our 89’ co-chairs

Mike Lullo Steve Neurauter

Why we are here

• After March presentation from Finance Committee, Board of Education

committed to ending deficit spending. To determine how to reach that goal, the Board asked committee to get feedback from the community. The Board asked to hear more about what residents value in their school district.

• The “Our 89” community engagement campaign was formed.

Facilitating team

Community chairs Mike Lullo (GC parent), Steve Neurauter (PV parent) Community members Melissa Bartoli (BG parent), Dr. Penny Belke (resident), Sara Boucek (resident), Tina Chivardi (WF parent), Alicia Cieszykowski (resident), Kellie DeLeon (PV parent), Leah Dimler (WF parent), Rachel Jeschke (PV parent), Mari Luangrath (GC parent), Victor Moore (AV parent), Kalani Reelitz (BG parent), Hope Serritella (PV parent), Donna Skibbe (PV parent), Greg Smaistrla (GC parent), Diane Tye (BG parent), Becky Waldbusser (PV parent), Carrie Zimmer (WF parent) District representatives Matt Hanley (communications), Maureen Jones (Assistant Superintendent for Finance), Dr. Bob Langman (Assistant Superintendent for Learning), Jude Locke (AV teacher), Barb Peterson (PV principal), Dr. Emily Tammaru (Superintendent), Board of Education members Jay Lerch, Beth Powers

TEAM ROSTER

Tonight’s work

• 7 - 7:45 p.m. Introductions and presentation
• 7:45 - 8 p.m.

Activity 1

• 8 - 8:30 p.m.

Activity 2

• 8:30 - 9 p.m.

Report out

Community engagement calendar

Session Date / time Location Topic Session 1 Tuesday, June 5 7- 9 p.m. Glen Crest Middle School Sharing information, community conversation Session 2A * Tuesday, June 19 7-9 p.m. Glen Crest Middle School Examining options, discussing solutions, providing feedback Session 2B * Saturday June 23 9-11 a.m. Glen Crest Middle School Examining options, discussing solutions, providing feedback

• The June 19 and June 23 meetings will cover similar topics. The district scheduled the June 19 and June 23 meetings at

different times and days of the week to accommodate more schedules.

Website / email / social media

• Website: www.ccsd89.org/our89
• Email: info@ccsd89.org
• Facebook: www.facebook.com/ccsd89
• Twitter: @CCSD89
• YouTube: Search “CCSD89” on YouTube

Questions and comments

• Fill out “I have a question/

comment” form

• Email: info@ccsd89.org
• Ask questions during

small-group time

Sign-in sheet

Financial presentation

• Dr. Emily K. Tammaru

Superintendent

Tonight’s conversation

• The district’s past efforts to cut costs and preserve

educational programming, as well as the challenges ahead.

• The options explored by the Superintendent’s

Finance Committee.

• The current work, and the next steps.

School finance: a reinvestment in our community

Excellent outcomes under financial pressure

TOP 10

PERCENT IN THE NATION FOR ACADEMIC ACHIEVEMENT

92nd

PERCENTILE OR ABOVE IN READING AT ALL GRADE LEVELS

85%

OF STUDENTS GO TO HIGH SCHOOL AT OR ABOVE GRADE LEVEL

86th

PERCENTILE OR ABOVE IN MATH AT ALL GRADE LEVELS

Source: spring 2017 MAP scores; high school placement

A community investment

For every $1 invested in schools…

Source: National Bureau of Economic Research http://www.nber.org/digest/jan03/w9054.html

$ $$$$$ $$$$$ $$$$$ $$$$$

...the effect on home values is 20 times as great

Current financial reality

• The district is operating a deficit budget.
• The district will have deficit budgets for the next five fiscal

years, and beyond.

• After five years of cuts, the district’s rising enrollment means

the district must make critical decisions. The Finance Committee - composed of parents, residents, board members, and staff - was tasked with finding ways to address this issue.

State funding: 7.45% Federal funding: 1.79% Local funding: 90.76%

Current revenues

Total Revenues = $28.2 million

All other includes:

Technology Instructional materials Insurance Legal services Utilities

Current expenditures

Total expenditures = $29.4 million

All other 12.29% Food service contract 1.28% Tuition (special education) 5.96% Custodial and transportation contracts 6.36% Salaries and benefits 74.12%

January 2011 financial projections

$13,005,166 $6,781,002 $13,622,355 $5,923,274 $14,309,081 $7,201,255 $13,380,954 $6,930,805 $13,514,816 $6,598,372 $13,217,541 $6,028,274 $12,214,337 $5,031,376 $10,953,808 $3,649,495 $9,100,549 $1,692,054 $6,777,838 ($760,041) $3,819,599 ($3,839,024)

Focus on fiscal responsibility

2008 and 2011 finance committees Five-year projections showed the district would have to borrow by 2015 Finance Committee convened to explore options, engage with the community.

○ Community asked for cuts and efficiencies that did not: ■ Directly impact classrooms ■ Conflict with the district’s core values ■ Contradict the goals in the strategic plan ○ Community asked that the district not pursue a tax-rate referendum at that time. ■ District’s last tax-rate increase was in 1986.

Result: From 2009 to 2016, the district made nearly $3 million in cuts, reductions

• utside the classroom.

Cuts and reductions since 2009

Adjusted substitute pay, eliminated overtime, reduced vacation/retirement benefits

$894,862: $491,430: $439,989: $380,816: $340,306: $268,800: $102,500:

Concessions from staff, reduced staff, eliminated support staff Eliminated five secretarial positions, fewer classroom aides, reception positions reduced Efficiencies in energy, bus routes, print services Reduced budgets for school supplies, field trips, software, professional development Administrative cuts, reduced salary increases, reduced outside consultants Reduced energy administrator stipend, re-bid custodial contract

Total cuts and reductions: $2,918,703

January 2011 financial projections

$13,005,166 $6,781,002 $13,622,355 $5,923,274 $14,309,081 $7,201,255 $13,380,954 $6,930,805 $13,514,816 $6,598,372 $13,217,541 $6,028,274 $12,214,337 $5,031,376 $10,953,808 $3,649,495 $9,100,549 $1,692,054 $6,777,838 ($760,041) $3,819,599 ($3,839,024)

Results of cuts

$13,005,166 $6,781,002 $13,622,355 $5,923,274 $14,309,081 $7,201,255 $13,380,954 $6,930,805 $13,514,816 $6,598,372 $13,858,375 $6,513,436 $14,413,812 $6,630,353 $14,355,204 $6,977,598 $14,413,936 $6,731,945 $14,854,570 $14,380,522 $6,803,474 $6,508,043

Current financial projections

Current financial projections

Current financial projections

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $16 million $14 million $12 million $10 million $8 million $6 million $4 million $2 million $0 ($2 million) ($4 million) ($6 million)

$14,355,204 $14,584,570 $14,380,522 $14,272,365 $13,203,864 $12,250,348 $11,516,331 $10,378,490 $9,519,638 $7,925,163 $14,413,936 $6,977,598 $6,731,945 $6,803,474 $6,508,043 $6,264,762 $5,242,906 $4,072,989 $3,134,917 $2,160,418 $809,717 ($932,457) $3,694,801 $3,203,791 $3,310,383 $2,890,915 $2,598,836 $1,321,901 $89,611 ($937,764) ($2,008,395) ($3,525,468) ($5,423,708)

Fiscal year end balance Estimated low point Fund balance, less early taxes

Current financial projections

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $16 million $14 million $12 million $10 million $8 million $6 million $4 million $2 million $0 ($2 million) ($4 million) ($6 million)

$14,355,204 $14,584,570 $14,380,522 $14,272,365 $13,203,864 $12,250,348 $11,516,331 $10,378,490 $9,519,638 $7,925,163 $14,413,936 $6,977,598 $6,731,945 $6,803,474 $6,508,043 $6,264,762 $5,242,906 $4,072,989 $3,134,917 $2,160,418 $809,717 ($932,457) $3,694,801 $3,203,791 $3,310,383 $2,890,915 $2,598,836 $1,321,901 $89,611 ($937,764) ($2,008,395) ($3,525,468) ($5,423,708)

Fiscal year end balance Estimated low point Fund balance, less early taxes

TODAY

Current financial projections

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $16 million $14 million $12 million $10 million $8 million $6 million $4 million $2 million $0 ($2 million) ($4 million) ($6 million)

$14,355,204 $14,584,570 $14,380,522 $14,272,365 $13,203,864 $12,250,348 $11,516,331 $10,378,490 $9,519,638 $7,925,163 $14,413,936 $6,977,598 $6,731,945 $6,803,474 $6,508,043 $6,264,762 $5,242,906 $4,072,989 $3,134,917 $2,160,418 $809,717 ($932,457) $3,694,801 $3,203,791 $3,310,383 $2,890,915 $2,598,836 $1,321,901 $89,611 ($937,764) ($2,008,395) ($3,525,468) ($5,423,708)

Fiscal year end balance Estimated low point Fund balance, less early taxes

BORROWING FROM NEXT SCHOOL YEAR TODAY

Current financial projections

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $16 million $14 million $12 million $10 million $8 million $6 million $4 million $2 million $0 ($2 million) ($4 million) ($6 million)

$14,355,204 $14,584,570 $14,380,522 $14,272,365 $13,203,864 $12,250,348 $11,516,331 $10,378,490 $9,519,638 $7,925,163 $14,413,936 $6,977,598 $6,731,945 $6,803,474 $6,508,043 $6,264,762 $5,242,906 $4,072,989 $3,134,917 $2,160,418 $809,717 ($932,457) $3,694,801 $3,203,791 $3,310,383 $2,890,915 $2,598,836 $1,321,901 $89,611 ($937,764) ($2,008,395) ($3,525,468) ($5,423,708)

Fiscal year end balance Estimated low point Fund balance, less early taxes

BORROWING FROM NEXT SCHOOL YEAR BORROWING FROM BANKS TODAY

Why does CCSD 89 have a deficit budget?

• Costs outpacing revenue

○ Insurance, transportation, contractual obligations ○ Increasing enrollment

■ Since 2012, district enrollment has grown by 16 percent ■ Projections: district will grow by another 13 percent in next four years ■ District will have added almost 600 students

• Investing in students and opportunity

○ Extending the school day for all students ○ Adding STEM education ○ Giving more access to technology ○ Developing resilient, confident learners

Enrollment projections

2,142 2,073 1,994 1,956 1,944 1,910 1,865 1,872 1,913 1,968 2,086 2,168 2,259 2,335 2,402 2,457

Enrollment, financial projections

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enrollment Fiscal year-end balance Estimated low point Fund balance less early taxes

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources

(and purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources

(and purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Low tax rate

CCSD 89 has the lowest tax rate among the Glenbard elementary districts. Glenbard feeder district tax rates (2016)

District 16 District 15 District 93 District 44 District 41 CCSD 89 6.1507% 6.1419% 4.8165% 4.1201% 3.6171% 3.3789%

Each additional 0.10 costs a homeowner $33 annually, per $100,000 home market value

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources

(and purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Fiscally responsible spending

CCSD 89 has the lowest

• perational

costs among Glenbard feeder districts, and is below the state average.

District 44

Operational spending per student

Data from fiscal year 2017, Illinois State Report Card. Instructional Spending Per Pupil includes only the activities directly dealing with teaching of students or interaction between teachers and students. Operating Spending Per Pupil includes all costs for overall operations, including Instructional Spending, but excluding summer school, adult education, capital expenditures, long-term debt payments.

District 15 District 93 District 41 State average District 16 CCSD 89

$15,111 $14,692 $14,457 $13,954 $12,973 $12,386 $12,340

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources

(and purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Attracting excellent teachers

CCSD 89 teacher salaries are comparable to surrounding school districts.

District 93 District 15 District 44 District 41 CCSD 89 District 16

$53,534 $52,201 $49,494 $49,351 $47,157 $48,284

Teacher starting salaries (Bachelor’s Degree, 1 year experience)

Attracting excellent teachers

CCSD 89 teacher salaries are comparable to surrounding school districts.

District 15 District 44 District 93 CCSD 89 District 41 District 16

$88,842 $81,512 $79,747 $75,000 $79,424

Teacher salaries (Master’s, 15 years experience)

$90,911

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources

(and purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Staffing, enrollment comparisons: 2011 to 2018

174 more students 6.2 fewer teachers

Since 2011, CCSD 89 has 174 more students and 6.2 fewer teachers.

2011 2018

1,994 students 2,168 students 160.6 teachers 154.4 teachers

2011 2018

CCSD 89 classes are larger than state and local districts at most grade levels.

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources

(and purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Low administrative costs

CCSD 89 has the fewest administrators per student

• f any of the

Glenbard elementary districts and is below the state average.

218.7 students 210.1 students

ONE administrator serves...

District 15 District 44 District 93 CCSD 89 District 41 District 16 = 10 students Statewide 201.8 students 189.6 students 176.8 students 143.8 students 134.1 students

Questions the Finance Committee studied

• How do CCSD 89 property taxes compare to others?
• How financially efficient is CCSD 89?
• Are we paying teachers too much?
• Can we operate with fewer teachers?
• Do we have too many administrators?
• Can we lower expenses by pooling our resources (and

purchasing power) with other districts?

• Would consolidation help CCSD 89?
• Are there other ways to raise funds?

Cost reductions through pooled purchasing

• Insurance benefits

○ Medical and dental: Educational Benefits Cooperative (209 members) ○ Property, liability, workman's compensation: Collective Liability Insurance Cooperative (181 members)

• Utilities: Illinois Gas Cooperative (IGC)
• Transportation

○ Regular education: Five districts bid together (D87, D41, D16, D15, CCSD 89) ○ Special education: Four districts (D15, D16, D44, CCSD 89)

• Special education: Cooperative Association for Special Education (7 Glenbard districts)
• Office supplies: Federal purchasing contract through Office Depot
• Legal services: Glenbard Property Tax Appeals Cooperative (D87, CCSD 89, D41, D44)

Other options considered

District consolidation

○ Not a solution to immediate issue ○ Could be detrimental to CCSD 89 students and homeowners

Establish CCSD 89 foundation

○ District will consider forming its own foundation, however… ■ A foundation is not a solution to the current issue of deficit spending ■ Inconsistency: funds raised would be dependent on donations ■ Deficit greater than what could be raised

Finance Committee conclusions

CCSD 89 cannot continue to operate with a deficit budget

• Depletes fund balance

○ Requires issuing short-term debt (tax-anticipation warrants) against future tax revenue

• Negatively impacts district’s finance and bond ratings, resulting in higher

interest rate on borrowed money, worsening deficit

• Does not provide a long-term solution for future planning and

sustainability

Option A

Increase revenues to maintain comprehensive, high- quality educational programming

• Avoids cuts to programs that directly impact students which are not consistent with the

CCSD 89 strategic plan

• Instructional supports at elementary and middle school

○ Reinstatement of some positions previously eliminated ■ Example: Instructional coaches for teacher and student support ○ Support staff for students (intervention support to address differing needs) ○ Professional development for teacher training

Glenbard feeder district referenda

District Operating rate referenda Marquardt 15 2003 (.67) 1993 (.30) Queen Bee 16 2003 (.46) 1988 (.60) Glen Ellyn 41 2001 (.55) Lombard 44 2004 (.50) Carol Stream 93 2004 (.93) CCSD 89 1986 (.42)

Option B

Reduce programs and increase fees

• Reductions totalling $1.2 million in first year (2019-20) including, but not limited to:

○ Increased class size ○ Further administrative cuts ○ Gifted/Challenge services ○ Band/orchestra ○ Physical education reduction and health ○ Social work services ○ Library media center staff ○ Full-day kindergarten

• Increase registration fees

○ Additional fees could generate approximately $40,000

After three years, the district would have to consider additional cuts.

Board of Education recommendation

March 2018: Board recommends expanding the discussion to gather feedback on the community’s educational values.

Upcoming:

• June: Community meetings to present information, gather feedback
• June: Community surveys to gather feedback
• July: report findings to Board
• August: Board decision

A community investment

For every $1 invested in schools…

Source: National Bureau of Economic Research http://www.nber.org/digest/jan03/w9054.html

$ $$$$$ $$$$$ $$$$$ $$$$$

...the effect on home values is 20 times as great

Finance: a reinvestment in our future

Small-group work activity

Work activity

Select a recorder and facilitator

○ Recorder responsibilities:

■ Complete the information on the group’s green worksheet

○ Facilitator responsibilities

■ Facilitate discussion ■ Keep group focused/on task ■ Report out group’s information

Small-group worksheet

• Information on green worksheet should reflect

consensus/general agreement of group members

• Monitor progress to complete the worksheet in

allotted time

Work activities

Activity one

Community values 15 minutes

Work activities

Activity two

Identifying priorities 30 minutes total

5 minutes: filling out individual white sheets 15 minutes: filling out group green sheet 10 minutes: identifying top four priorities

Small-group work activity: Reporting out

Thank you!

Don’t miss one of the second sessions: 7-9 p.m., Tuesday, June 19

Glen Crest Middle School

9-11 a.m., Saturday, June 23

Glen Crest Middle School

Meeting one June 2018

63