Long-Range Financial Plan and 2011/12 Budget Development

January & February, 2011

Los Alamos Public Schools Long Range Financial Planning Committee – Updated: 2/17/11

Background Information

• History of declining enrollment identified by Mary McLeod in 2009

• Cut or Keep Meetings held in 2009/2010• April 2010 Budget Meeting• Non-negotiable Goals– 100% of students will graduate– 100% of students will achieve at least one year of

measureable academic growth– 100% of schools will be safe and civil

How Schools Are Funded in NM

• State Equalization Guarantee (SEG)– Based on 80-day and 120-day student count from

previous year– Has been reduced for the past two years.

• Was reduced in February of 2010 after the 2009/2010 budget had already been in effect for over 7 months!

• Was reduced in August of 2010 after the 2010/2011 budget had been approved and was in effect for 1 month.

• Federal stimulus funds are being used to offset the largest part of the reduction.

Additional LAPS Funding

• $8 million from DOE–Has remained the same since 1999–Continues through 2014

Lease-revenue Funds

• In 2007, Board decided to make a concerted effort to discontinue the use of lease-revenue funds for operational expenses•Have been used the last two years to help

offset the cuts in the SEG.• Should net approximately $1.5 million per

year IF the leases continue (can be cancelled at any time with 6 month notification).

What About Bond Funds?

• Bonds–Must be approved by the community every

4 Years.–Can only be used for large capital expenses

(bricks and mortar).–Can NOT be used for operational costs.

Referendum

–Must be approved by the community every 6 Years. –Can only be used for building

maintenance/repair, technology hardware, other large expenses.–Can NOT be used for operational costs.

Funding Summary

Funding Source Uses

State Equalization Guarantee (SEG) Can be used for any expenses…always one year behind compared to enrollment

DOE $8 million Can be used for any expenses…has remained the same since 1999…no cost of living adjustments!

Leased Funds Can be used for any expenses…can be cancelled at any time with 6-months notice

Bond Funds Can only be used for large capital expenses (bricks and mortar). CANNOT be used for salaries!

Referendum Funds Can only be used for building maintenance/repair, technology hardware, other large expenses. CANNOT be used for salaries!

LAPS Enrollment vs. Funding History

20000000220000002400000026000000280000003000000032000000340000003600000038000000

Funding to LAPSYear

SEG

Total Funds

total w/ Stimu-lus

in D

olla

rs

3250

3300

3350

3400

3450

3500

3473

3375

3305

3399 3401

LAPS Enrollment Trends* 40th day STARS reports

2007 2008 2009 2010 2011

Enrollment and Staffing Trends

0

100

200

300

400

500

600

260.1 257.7 261.3 263.1 247.2 258.4

505.5 492.6 497.4 495.3457.3 460

Site Staffing Totals 2006-2011N

umbe

r of S

ite E

mpl

oyee

s

teachers

total staff

3250

3300

3350

3400

3450

3500

3473

3375

3305

3399 3401

LAPS Enrollment Trends* 40th day STARS reports

2007 2008 2009 2010 2011

Direct Student Costs (Salaries and Benefits)

$22,483,613 66%

Administration Costs (Salaries and Benefits)

$4,587,141 14%

Maintenance/ Trans-portation Costs (Salaries

and Benefits)2627611

8%

Other Costs (Supplies/ Training/ Travel/ Utilities)

$4,171,631 12%

2010/11 Budgeted Expenses

Direct Student Costs include costs for classroom teachers, specials teachers, nurses, counselors, OTs/PTs and IAs

All shades of blue indicate personnel costs.

Utilities, communication services, and liability insurance accounts for approximately $1.5 million of the “Other Costs”.

How is the money spent now?

Committee Makeup• Original Members

Gene Schmidt Paula Dean John Wolfe Melanie McKinley Kevin Honnell Ellen Mills Ken Johnson Kim Selvage Kelly Myers Mike Schick Shawn Hailey

• Expanded MembersGerry WashburnRex KilburnSandy WarnockJennifer GuyJenny Diesburg-

LathropWyatt DumasSally ShockeyAnita BoshierDebbie ElliotKen HolmesCheryl Smith-EckeDawn JalbertKeith Rosenbaum

Stephanie RittnerEreyna BenelliNaomi UngerDawn JonesJenn SchmiererKate KetteringLisa MietzSuzanne LynneRonda HarmonVicki NelmsJeff SargentDean Obermeyer

Committee Goals

Develop an austerity budget. Develop a list of program elements that the district

would like to utilize. Develop a cost associated with each program element. Develop a rubric to evaluate each program element.• Evaluate each program element using rubric.• “Layer” the elements into a financial plan for the

2011/2012 school year.• Communicate the plan to the public.

Committee Timeline

Austerity budget: DoneProgram elements: November 2010Program costs: December 2010Rubric: December 2010• Program elements evaluation using rubric:

February 2011 • Financial plan: March 2011• Communication of plan to public: April 2011• Budget Decision by Board: April/May 2011

Committee Timeline

Just legal – funded by SEG

Essential for Student Achvmt

Important to meet district goals

Adds desirable elements

Makes LAPS best in the land

Creating a Rich Public Education

• Only contains those program elements required by law.

• NOT HOW WE WANT OR PLAN TO RUN OUR DISTRICT!!

What is an Austerity Budget?

Austerity Budget – Slide 1Program Element 2011/12 Budget Austerity Budget

(does not include Special Ed)2010/11 Budget(does not include Special Ed)

Elementary Teachers ?? 76 88

LAMS Teachers ?? 21 32

LAHS Teachers ?? 42 64

Art Teachers (elem.) ?? 0 3.7

Librarians ?? 1 6.8

Music Teachers (elem.) ?? 0 3.7

PE Teachers (elem.) ?? 0 3.7

Principals ?? 6 10

Site Secretaries ?? 7 7

Attendance Clerks ?? 0 7

Counselors ?? 4 11

Nurses ?? 3 8

Regular Ed IAs/Reading IAs/Dept. Secretaries

?? 10 (kinder IA) 46

Austerity Budget – Slide 2Program Element 2011/12 Budget Austerity Budget 2010/11 Budget

Superintendent ?? 1 1

Assistant Sup ?? 0 1

Business Office ?? 5.5 11

Human Resources ?? 2 4

Specialists (Math, Curriculum, etc.)

?? 0 5

Technology Staff ?? 3 12

Athletics/Activities ?? Eliminated $221,000

Maintenance ?? 9.5 19

Custodians ?? 22 31

Technology ?? No cell phones/pagers;

reduce xerox by halfSupplies ?? None $461,000

• The sobering reality?– The Austerity Budget would require approximately $24.4 million

of funding.– The SEG (including Federal Stimulus Funds) is providing us with

$24.6 million in 2010/11!– In other words, the state barely gives us enough money for the

minimum required by law.– This begs the question, “Is New Mexico really funding an

adequate education for students across the state?”• Fortunately we still have the $8 million from DOE.

Without it, our students’ educational future would be bleak indeed!

Austerity Budget

• Six Criteria:– Contributes to staff morale and effectiveness.– Facilitates core student learning and achievement.– Promotes development of personal and life skills.– Promotes learner engagement and attendance.– Facilitates a safe, civil, and healthy environment.– Promotes enhanced learning beyond the

fundamentals.

Evaluation Rubric

Program NameApproximate

Cost

Contributes to staff morale

and effectiveness

Facilitates core student learning and achievement

Promotes development of personal

and life skills

Promotes learner

engagement and

attendance

Facilitates a safe, civil and

healthy environment

Promotes enhanced learning beyond

fundamentals TOTAL

Site Adjustments - Elementary                

Principal 1 per site   3   4 f hj kj  

Reduce class size to 2010-11 levels                

Eliminate multi-age classrooms                

Elem. Contact Person 1 per site                

2nd Site clerk/receptionist                Elementary IA's/ 1 per 100 students                

Elementary Music all grades                

Elementary Orch/Band                

Elementary Art all grades                

Elementary Certified Librarians                

Elementary P.E. all grades                Educational Technologists 1 per district                Math Instructional Coach 1 per district                Reading Instructional Coach 1 per district                

The Rubric

Rubric → On-line Survey

One you sign-up for the survey, you’ll receive an email with a link

Click on the link and you’ll automatically be taken to the survey.

Q: Why the email link rather than a direct connection thru a web browser? A: Because the email link enables the survey to save your results as you go along, so you can take breaks and pick up where you left off!

Clicking on link takes you to survey

Survey, continued –Select all that apply.

Survey – Typical Question Format

Same evaluation criteria appear for each question in survey}

Survey – Another Question

Continue through all the questions in the survey.

If you use the email link to connect with the survey, it will save your results as you go along, so you can take a break at any time, click on the email link, and be right back where you left off!

• Using the Rubric– LRFPC Members complete rubric (done)– Community information and meetings (scheduled end of January and beginning

of February)– Completed rubrics are submitted (by 3/6/11)

• Analyzing the Rubric– Collect the data (throughout February into March)– Committee meets to analyze results (scheduled 3/1 and 3/15)

• Making the Decisions– School Board reviews recommendations (anticipated for 3/24)– 2011-12 budget developed (April 2011)– Long-range plans created (future)

Where do we go from here?

Questions?

Just legal – funded by SEG

Essential for Student Achvmt

Important to meet district goals

Adds desirable elements

Makes LAPS best in the land