SCHOOL DISTRICT U-46 2015 COST EFFICIENCIES SEPTEM BER1 4 , 2 0 1 - PowerPoint PPT Presentation

SCHOOL DISTRICT U-46 2015 COST EFFICIENCIES SEPTEM BER1 4 , 2 0 1 5

SPECIAL EDUCATION nc re a se o f $1,412,879 in Me dic a id re imb urse me nt I thro ug h mo nito ring a nd sub missio n o f impro ve d sta ff re imb urse me nt a c tivitie s. Fee-For-Service 2012- 2013 Sc hool Ye a r T o Da te 2013- 2014 Sc hool Ye a r T o Da te 2014- 2015 Sc hool Ye a r T o Da te Re imbur se me nt Re c e ive d Re imbur se me nt Re c e ive d Re imbur se me nt Re c e ive d (July 2012- June 2013) (July 2013- June 2014) (July 2014- June 2015) $ 1,928,530 $994,343 $908,434 Outreach/MAC/Time Study 2012- 2013 T ota l T ime Study Re ve nue 2013- 2014 T ota l T ime Study Re ve nue 2014- 2015 T ota l T ime Study Re ve nue (4 qua r te r s) (4 qua r te r s) (4 qua r te r s) $979,249 $734,447 $1,127,230 2

Wor king Cash Yie ld Pe r c e ntage (the inc r e ase in yie ld e quals appr oximate ly an additional $37,400 pe r month in r e ve nue and $448,000 annually) 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Jun-12 Se p-12 De c -12 Ma r-13 Jun-13 Se p-13 De c -13 Ma r-14 Jun-14 Se p-14 De c -14 Ma r-15 Jun-15 3

PROFESSIONAL DEVELOPMENT • Almo st 90% o f PD wa s mo ve d to T itle I I a nd T itle I funding . Additio na lly, mo st PD ha s b e e n mo ve d to a fte r sc ho o l to a vo id sub c o sts. E stima te d sa ving s o f $500,000 pe r ye a r . • Re duc e d te sting sc he dule e q ua te s to le ss sub c o ve ra g e . With o nly o ne PARCC windo w a nd fe we r MAP se ssio ns, o ur c o sts a re re duc e d b y a ppro xima te ly ha lf. T he c ha ng e will re duc e the c o st o f pro c to rs, sub s a nd te c h suppo rt a nd sho uld sa ve the o rg a niza tio n a ppro xima te ly $250,000 pe r ye ar . 4

HEALTH INSURANCE COMMITTEE School District U-46 Employees' Health Care Program (2004-2016) Calendar Year Overall Increase National Trend Plan Design Claims Experience 2004 32.60% 12.90% 0.00% 19.70% 2005 -29.39% 12.60% -41.99% 0.00% 2006 3.94% 12.00% 0.00% -8.06% 2007 29.39% 10.50% -0.96% 19.85% 2008 9.90% 11.00% -1.80% 0.70% 2009 2.80% 9.50% -2.61% -4.09% 2010 12.90% 9.80% 1.45% 1.65% 2011 2.10% 9.10% -3.47% -3.53% 2012 2.00% 9.50% -4.40% -3.10% 2013 0.90% 8.30% -1.50% -5.90% 2014 4.80% 7.60% -3.70% 2.00% 2015 1.80% 8.40% -5.00% -1.00% 2016 3.10% 7.50% -2.00% -1.90% Average for past 13 years 5.91% 9.90% -5.08% 1.26% Average for past 10 years 6.97% 9.12% -2.40% 0.47% Average for past 5 years 2.52% 8.26% -3.32% -1.98% 5

HEALTH INSURANCE COMMITTEE School District U-46 Health Care Savings (2005-2016) Calendar National Overall Net Effect of HCC Recommendations Year Trend Increase Percentage Dollar Accum Value new program 2005 12.60% -29.39% -29.39% $ (13,590,776) $ (216,326,101) 2006 12.00% 3.94% 0.00% $ - $ - 2007 10.50% 29.39% -0.96% $ (271,115) $ (3,410,055) 2008 11.00% 9.90% -1.80% $ (657,849) $ (7,253,810) 2009 9.50% 2.80% -2.61% $ (1,096,102) $ (10,466,797) 2010 9.80% 12.90% 1.45% $ 628,082 $ 5,113,853 2011 9.10% 2.10% -3.47% $ (1,515,687) $ (10,309,569) 2012 9.50% 2.00% -4.40% $ (1,963,311) $ (10,848,531) 2013 8.30% 0.90% -1.50% $ (695,708) $ (2,998,586) 2014 7.60% 4.80% -3.70% $ (1,814,828) $ (5,721,245) 2015 8.40% 1.80% -5.00% $ (2,409,380) $ (4,939,229) 2016 7.50% 3.10% -2.00% $ (1,002,482) $ (1,002,482) Average 9.65% 3.69% -6.67% $ (3,048,644) Average over last 5 years: 8.26% 2.52% -3.32% $ (1,577,142) Aggregate Dollar Savings Through 2016: $ (24,389,154) Accumulated Value of HCC Recommend- ations Through 2016 (est): $ (268,162,553) 6

COST SAVINGS WITH OFFICE DEPOT Cost w/ out Month Contr a ct Cost Tota l Sa v ings Contr a ct Jul-14 $ 50,496.45 $ 131,243.76 $ 80,747.31 Aug-14 $ 93,534.80 $ 158,754.64 $ 65,219.84 Sep-14 $ 69,760.46 $ 179,481.15 $ 109,720.69 Oct-14 $ 84,405.57 $ 200,680.22 $ 116,274.65 Nov-14 $ 57,809.51 $ 84,879.18 $ 27,069.67 Dec-14 $ 35,343.71 $ 72,746.36 $ 37,402.65 Jan-15 $ 66,194.88 $ 148,632.20 $ 82,437.32 Feb-15 $ 50,283.49 $ 100,788.95 $ 50,505.46 Mar-15 $ 78,952.01 $ 186,549.49 $ 107,597.48 Apr-15 $ 122,434.85 $ 240,389.31 $ 117,954.46 May-15 $ 88,934.31 $ 156,875.48 $ 67,941.17 Jun-15 $ 18,337.86 $ 34,166.49 $ 15,828.63 G rand Total $ 816,487.90 $ 1,695,187.23 $ 878,699.33 7

Business Services Recycling Efforts 8

Distribution Center Operational Efficiency Distribution Center Distribution Center Operational Savings Operational Savings 2013-2014 2014-2015 $ Dollars of Goods $ Dollars of Goods processed by processed by Distribution Center $18,805,710.00 Distribution Center $18,030,825.00 Business Services Business Services Negotiated Cost Negotiated Cost Savings $5,609,344.00 Savings $5,497,341.00 Distribution Center Distribution Center Operating and Staff Operating and Staff Cost $1,440,917.00 Cost $1,556,778.00 Distribution Center Distribution Center Cost Savings After Cost Savings After Expenses $4,168,427.00 Expenses $3,940,563.00 Note: The Cost Savings are a result of Business Services personnel negotiating better prices for goods and services for the District . 9

Financial Operations Payroll System Cost Savings Annual Licensing Fees Oracle/ Tyler Tech 350,000.00 $311,822 300,000.00 $233,484 250,000.00 200,000.00 150,000.00 100,000.00 $65,331 $68,547 $65,331 50,000.00 0.00 FY11 FY12 FY13 FY14 FY15 10

FINANCIAL OPERATIONS PAYROLL SYSTEM COST SAVINGS PRINTING AND TAX FILING SERVICES AUTOMATIC DATA PROCESSING, INC. 200,000.00 $146,692 $150,810 $124,176 150,000.00 100,000.00 50,000.00 $0 $0 0.00 FY11 FY12 FY13 FY14 FY15 11

INFORMATION SERVICES COST SAVINGS - E-RATE BIDS • E -Ra te Bids • Pro je c ts a nd Se rvic e s • Wire le ss ne two rk syste m – fo r stude nts a nd sta ff • Ne two rk switc he s – to suppo rt wire le ss ne two rk • Ca b ling – to suppo rt wire le ss ne two rk • Da ta line s b e twe e n sc ho o ls • T e le pho ne line s • I nte rne t a c c e ss • Pro je c te d Sa ving s $3,600,000.00 • F ro m F e de ra l E -Ra te g ra nt • Pe nding fina l E -Ra te a ppro va l • 80 pe rc e nt disc o unt 12

INFORMATION SERVICES COST SAVINGS – COMPUTING DEVICES • HP Stre a m la pto p • Purc ha se d 1,270 la pto ps inste a d o f full-size c o nve ntio na l la pto ps • Co st sa ving s $406,400.00 • iPa d T a b le t • Pro po se d iPa d Air 2 • Afte r Bo a rd disc ussio n, re vise d pro po sa l to iPa d Air • Co st sa ving s $135,000.00 13

INFORMATION SERVICES COST SAVINGS – VIRTUALIZED SERVERS • E xpa nde d Virtua l Se rve r Syste m • Allo ws a fe w a c tua l se rve rs running spe c ia l so ftwa re to ha ve the sa me “virtua l” c a pa c ity a s 15-20 time s mo re se rve rs • Gre a tly re duc e s the ha rdwa re c o st • Purc ha se d 4 a dditio na l a c tua l se rve rs – summe r 2015 • T o ta l a c tua l se rve rs - 10 • Curre nt virtua l se rve rs -150 • Co st sa ving s (e ntire syste m) - $925,000.00 14

Cell Phones to Radios TO: Radios provided by grant funds that were gained by the Director, School • Safety & Culture First year reduction of 33 phones from 64 in the Plant Operations Department • First year’s estimated savings to the District is over $42,300.00 • 15

Consumable Contract Combining Warehouse Direct 14/15 New • Contract – Paper/Plastic – Soap – Custodial supplies $371,320 $341,031 Unifirst • – Dust Mop Cleaning – Soap $ 27,954 $ 0 AmSan • Savings of – Soap $ 26,319 $ 0 Total Cost 14/15 $425,594 $341,031 $84,562 16

CAPITAL PROJECT SPENDING GENERATING COST AVOIDANCE $1,957,820 15% MINIMUM $1,816,548 $16,000,000 YEARLY COST T OT AL COST $1,625,945 AVOIDANCE $14,000,000 AVOIDANCE 5% REPAIR COST 5% DAMAGE COST SAVINGS $12,000,000 5% DOWN TIME COST $5,400,313 15% $10,000,000 2012- 2014 $8,000,000 $10,839,632 $13,052,135 $6,000,000 $12,110,324 Co st $4,000,000 Avo ida nc e $2,000,000 (sa ving s) Ca pita l $0 Pro je c t Co sts 2012 2013 2014 YEAR 17

MOBILE CLASSROOM REDUCTIONS CORRELATING TO DOLLARS SAVED 100 Number of 90 18 80 Mobiles not 70 Used/Removed 26 60 95 50 40 77 10 Total Mobile 30 5 51 20 Classrooms 41 10 36 0 $8,500 Per Year To Operate 1 Mobile Classroom. 18

2015 ENVIRONMENTAL PROJECTS COST AVOIDANCE Issues/Concerns Proactive Cleanups Positive Outcome to the Community and District Potential Risks THE AMOUNT OF MONEY PLANT OPERATIONS SPENDS ON ENVIRONMENTAL PROJECTS SUCH AS MOLD, ASBESTOS, AND LEAD- BASED PAINT POTENTIALLY HAS SAVED THE DISTRICT HUNDREDS OF THOUSANDS / MILLIONS OF DOLLARS AND THE POTENTIAL FUTURE COSTS ASSOCIATED WITH WORKMAN’S COMPENSATION CLAIMS, 19 MISC. LITIGATION CLAIMS, SICK DAYS, ETC.