October Envision 417 Committee Meeting
Members of the Envision 417 Committee met on Monday, October 25 and opened with Kansas Learning Network consultant Steve Gering working on team building and direction. The committee redesigned its focus and purpose. That purpose is listed as follows:
Develop options for consideration by the BOE and Superintendent that will:
*Address short-term district funding issues without sacrificing long term growth opportunities in the district and community.
*Raise the expectations and standards for students and school staff to ensure that all students are being prepared to compete globally and graduate from high school college and career ready.
*Engage the entire USD 417 community in working together as a region toward a common vision.
Dr. Ford wanted USD 417 patrons to be aware that the creation of this committee was a merger between the Education Committee created from the Extension-led Envision Council Grove project and the BOE directive from the July work session USD 417 BOE to find ways to help USD 417's fiscal situation.
The Envision 417 understands that our current school budget as is, is lean, but the greater concern conveyed by Dr. Ford was in regards to the federal stimulus money ending this school year. The State Legislature does not have a plan to remedy the shortfall from the ARRA stimulus money and the committee must attend to addressing funding issues.
Dr. Ford reports that all budgets for operating our schools have been allocated to all persons responsible for making decisions on money use. These budgets encompass building budgets, technology, transportation, maintenance, salary, benefits, energy, etc. These budgets are estimates, still awaiting the state audit to establish exact numbers. Monies are "encumbered" to cover known and unknown future expense and planning for improvements.
Below are monies encumbered (or earmarked for spending) after budgets have been allocated:
Capital Outlay $200,000 - For equipment and facility improvement/repair
Medical Insurance $40,000 - For the anticipated/predicted rise in medical insurance cost (in April, new premiums are established)
Book Adoption $50,000 - Due to budget constraints, this annual practice has been postponed for 3 years
Bus $60,000 - Due to budget constraints, 3 years since last replacement
Drivers Ed./Van $25,000
Cushion $90,000 to 100,000 - this is barely a 1% cushion for operating expenses. It is common practice among superintendents who have advised Dr. Ford is to have a minimum of 3% of the budget to cover operating expenses.
Again, the large concern for next year is the shortfall that could occur for schools if the federal stimulus money is not replaced. From the start of last year to this year, we lost over $400,000 in state aid (a small portion of this is due to declining enrollment). The stimulus money allocated for USD 417 over a two-year period ($371,000 in ARRA stimulus, $72,388 in Title I ARRA stimulus and $30,000 in ARRA "on improvement”) was $473,388 (an average of $236,694 per year). This stimulus money is a back fill. It is Dr. Ford’s understanding that its design was to help schools stabilize their budgets over a two-year period. Dr. Ford indicated that he believes it was a bridge, hoping for economic recovery to occur or to give schools time to figure how/where to cut their budgets.
Dr. Ford estimates the future loss of $300,000 to our district from the information he has received from superintendent in-service. The stimulus money being allocated by the state for all schools (whether earmarked for Title, improvement or whatever) is approximately $218,000,000. The State Legislature at this time does not have a plan in to replace that amount. A cut of $100,000,000 of state aid is about $100 per FTE in state aid to schools. Our estimated "weighted" enrollment for USD 417 is 1,418.4 students. An approximate $218,000,000 reduction in state aid translates into an estimated reduction of $218 per FTE for a total possible cut of $309,211 for USD 417. There is no crystal ball to guarantee these cuts will take place. However, conversations/questions fielded to state legislatures representatives and candidates indicate we should prepare for the strong possibility that more cuts to state aid/federal aid are in the future.
Minutes from the Envision 417 meeting are available at the central office.
