$667,000 deficit addressed in update
With their annual visit to Waldron Island school for a regular board meeting beginning at 10 a.m., and the reconvening of the public session at 4:35 p.m., followed by a special board meeting at 7 p.m., the Orcas Island School District administration and board had a marathon day of school business to take care of on April 24, including allowed time for budget review and projected budget revisions and suggestions and public comment.
Finance report
Ben Thomas, District Business Manager, reviewed the finance report for the period ending March 31, 2008. The report included enrollment analysis showing 462.70 annual average full-time equivalency figures for the District, including the ALE programs and Waldron School. Thomas noted that enrollment between 2000 and 2008 has shown a downward trend the last few years. The report also showed assets, liabilities, and the current fund balance of $142,491. Fund balances for the same time period in previous schools years were given as $17.997 for 2006-07 and $221,342 in 2005-2006.
Thomas stated that his best guess, “being conservative,” is that the school year will end with $185,000 fund balance. Upon questioning from Board Member Charlie Glasses, Thomas said that the balance may be between $185,000 and $216,840.
The monthly average expense for staffing is $358,000, which includes health benefits, retirement, testing wages, paid leave, advisor stipends and other benefits for certificated and classified staff.
Capital projects fund, debt service fund, Associated Student Body fund, transportation vehicle fund and Private and Trust Funds are accounted for in the District budget as well as the General Fund.
2008-2009 budget
Of major concern to the public was the proposed 2008-2009 budget, and the projected $667,000 deficit that was announced last week.
At the afternoon meeting in the school cafeteria, Marta Branch, representing the Orcas Education Association, read a statement to the board, saying, “We believe there was bias built into the District’s report of the budget, specifically in the District’s characterization of collective bargaining as a causal factor to the projected deficit.
“We view the manner of presentation as a clear violation of the spirit and content of Appendix N [the memo or understanding between the Orcas Island School District and the Orcas Education Association, dated Sept. 1, 2007]….it now appears that he District has violated its own best hopes for communication.”
Steve Diepenbrock, Chair of the Budget Advisory Committee (BAC), stated that the committee’s primary project focus was budget
communications. The BAC will form the first budget report to be presented to the board for a review in time for the it to be of
beneift during the board budget process through June.
Deficit reductions
The Budget Administration Team, composed of Superintendent Glenn Harris, Thomas, Principals Tom Gobeske and Barbara Kline, and
transportation, food, and maintenance and operations supervisors, had gone over the budget presented to the board on April 17 and updated it to show reductions to the $667,000 deficit originally projected. The reduction in deficit would occur through two options.
Proposed deficit reductions in the first option included:
• reducing the fund balance growth to $210,000, rather than $275,000
• counting $100,000 in community donations into the budget
• reducing “revenue conservation” (a kind of extra contingency fund) by $25,000
• reducing Non-employee-related costs (NERCs) by $52,800
• reducing K-8 parent allocation for Alternative Learning students by $26,304
• reducing 2.8 Full time employee (FTE) positions in the elementary school, for 182,000 reduction
• reducing 2.18 FTE positions in the high school, for $141,700 reduction
• reduce classified staffing in the food service, for $15,000
• reducing additional .91 certificated staffing, for $59,196
The second option changed the additional certificated instruction by .24 instead of .91, for a reduction of $15,466, and also added the following elements:
• reducing transportation costs by $33,250
• Transferring costs for athletic travel to the ASB fund, thereby reducing by $10,500
The update indicated that other areas for reduction, but not examined were the Educational Services District’s business contract, Administrative staffing, and additional classified staffing, as well as reduction in other programs such as special education and pupil transportation.
Board member Keith Whitaker asked about the current year’s general supplies fund, which “consistently shows overbudgeted and underspent” amounts, leaving what appears to be an additional $150,000 dollars.
He also questioned contracted expenses, which showed a $229,000 surplus. “My main concern in looking through the files, is that in addition to unallocated resources, where a little bit of extra money was left in, all monies are not specifically allocated to known expense items… It’s one thing to be safe and conservative, but I’m concerned about accuracy. We don’t have a good sense when there’s little bits and pieces that don’t add up.”
When Thomas and Harris said that there wasn’t enough time to show detailed allocation of funds, Board member Scott Lancaster asked, “What would it take to do that?” and Harris replied that re-allocation of resources (administrative and/or financial office staffing) would be needed.
Board President Janet Brownell suggested that by removing coaching stipends and making all coaching positions volunteer, it would add $57,000 into the budget. Harris responded that her suggestion implied that paying for coaching would be “funded in another way.”
When Whitaker said that if the ALE parents’ allocation was reduced, that some would leave the program, Brownell suggested that the ALE allocation could be added back into the budget if all coaches were volunteers. Lancaster added that other stipends beyond athletics should be looked at.
Board Member Tony Ghazel said he would “throw on the table” his suggestion that seven different departments on campus — curricular, administrative, business office, extracurricular, food, maintenance and operations and transportation — all face a nine percent cut across the board to address the projected deficit.
Ghazel objected to approaching the $667,000 deficit reduction “like it’s a fait accompli,” and said that his proposal is “a way to come up with a board decision we have to make.”
Brownell said that the Board is looking at reducing certificated staff by six FTE by May 15. Between that time and the July 1 date for finalizing the budget, the Board may be able to reinstate all teachers reduced “RIF’d” from the district’s programs.
Board member Charlie Glasser said, “It’s a terrible process to RIF and bring back; it’s incumbent on Washington and the Educational Services District to change this. The legislators and the governor who signed off on the legislation this time around understood the implication for schools districts — a $100,000,000 million reduction around the state is a real
comment.”
Harris said that the suggestions would be considered in the next week, and alternate proposals brought to the board by April 30 special budget meeting.
Middle/High School Principal Barbara Kline asked that the Budget Administration Team, charged with overseeing the budget recommendations to the Board, be directed to meet with the BAC to pool their research into a plan for the coming school year.
Steve Diepenbrock, BAC Chair asked for the Board’s direction on such a meeting, and the Board advised the Administration Team to meet with the BAC.
The next budget meeting will be on Wednesday, April 30, beginning at 5 p.m.
Austerity Measures
Whitaker presented a list of austerity measures, which he said he’d formulated in hopes of discussing suggestions from other board members.
Whitaker’s suggestions included:
• elimination of overtime, travel, professional development, as well as legal, technical, testing contracts
• changing the rates for facilities’ use and transportation
• using volunteer labor when not in opposition to contractural agreements
• clarification of ASB funds “as they may be used for extracurricular” expenses
• reduce meetings with teachers that require the use of substitutes
Glasser commented, “Given the budget constraints, this is a well-thought out budget of austerity measures. I would be in favor of implementing it.”
Whitaker said that his suggestions were not a proposal, but a means to implement discussion. Ghazel commented that there were a multitude of elements in Whitaker’s plan to consider.
Harris protested the inclusion of several of Whitaker’s suggestions, saying they should be brought up in executive session, or would eliminate programs for travel and development “that need to happen.” Harris said, “the bottom line is [Whitaker’s suggestions] “would have a huge ramification for the school district.”
Lancaster interjected that the board should “take a little time to look at this,” and Brownell said, “We should address the executive session issues in executive session and see what’s doable, reasonable and come back and talk about a specific austerity plan.”
Glasser said that he didn’t see the plan as directed specifically at the superintendent but as “an effort to try to establish a sense of austerity, the sense of the Board of the urgency and necessity to save money over the next 60 days.”
Board ALE Committee
The board approved the establishment of an ALE Advisory committee. Lancaster presented each board member with a copy of the Sequim school district’s alternative learning program policy, and recommended adopting similar policy “that can be massaged into our district.”
Glasser advised reviewing the Sequim document, and Ghazel and Lancaster abstained in the vote approving the ALE Advisory Committee.
Brownell said that the district board was looking to the two principals to form the committee, and that she hopes it will report to the board by mid-July.
Superintendent’s report
Superintendent Glenn Harris said that the state audit this year shows “much improvement” and described the audit as “full-on” covering personnel, apportionment, and business and financial services. By way of a “heads-up,” Harris noted that preschool services will be up in 2008-2009, and that life skills classes for older kids will also be needed.
The high school gym floor will be resurfaced, with the insurance company assuming about half of the cost. The gym floor was damaged by a roof leak last winter. Board Member Scott Lancaster said that the floor need refurnishing anyway, and it was great that Harris was able to negotiate 50 percent compensation for the whole project from the insurance company.
Kline announced that she had been appointed to the Board of the Digital Learning Commons (DLC), the state-supported online learning credit program, and that she joins State Superintendent for Public Instruction Teri Bergeson, and Governor Chris Gregoire on that board.
During the meeting, the board approved bond allocation for the Waldron school roof and other capital items.
Public comments
In a letter from Andrea and Hugh Hendricks, it was suggested that the budget be studied by students as a tangible math lesson, and that at the district’s open house in May, a list of expenses for each academic program be posted on classroom doors, with students involved in the process. The Hendricks also suggested that the students be involved in keeping the school in a clean working order.
Science teacher Gregory Books said that the budget was presented “as a conclusion” and that a “more transparent budget that gives the data to back it up” should be presented.
Coach Dennis Dahl said that while he understood the need for cuts, that athletics “is the other half of education,” and that by cutting them, “you’re robbing Peter to pay Paul.”
Teacher Marta Branch objected to Thomas using the word “over-staffing,” and said, “I don’t know anybody in this room who considers the district overstaffed.”
Teacher Kathy Collister questioned why the district is paying so much for custodial services.
Public library Director Phil Heikkinen emphasized that education is composed of academic, athletic and social elements, and offered that the BAC can be helpful in resolving budget issues.
Ghazel said, “These are hard numbers and we have to present them, but we must do it in a visionary process… and hopefully the community will come forward.”
Whitaker said, “This is not a one-year event. As we continue beyond this year, it’s crucial that we look at ways to save money in a balanced way that’s sustainable.”
The next budget meeting will be on Wednesday, April 30, beginning at 5 p.m. with a public meeting, followed by a special board meeting from 7:15 to 8 p.m.
