Fiscal Stewardship

Building People and Organizations

New York: PO Box 130 Pittsford, New York 14534

Florida: PO Box 720 Naples, Florida 34102

Phone:(585) 264-0886

Direct:(585) 703-7521

Please note: These reports are submitted exactly as received from the Task Forces.

Task Force Report: Section A

SWOT / Critical Issues

Task Force: / Date: / Facilitator(s):
Fiscal Stewardship / March 26, 2014 / Jennifer Jaquith & Mark Ash
Members: / John Ames, Jennifer Howell and Laurie Cuddy
Charge: / The Fiscal StewardshipTask Force is charged with comprehensively reviewing all district budgetary processes and procedures in order to assure the effective use of district resources and expenditures. In order to accomplish this, the Task Force will explore ways to:
  • Develop sustainable short term and long-term budgets.
  • Decrease reliance on fund balance/savings.
  • Provide adequate funding for the other focus areas.
  • Maximize resources.
  • Increase sustainability. Our focus needs to be on building budgets to continue providing a quality education for Hinsdale students.Hinsdale cannot continue to budget expenses greater than revenues. We need to decrease reliance on savings in order to fund ongoing programs and identify areas ofspending that do not necessarily help achieve our goal of increased student achievement.
  • Prevent enrollment decline. This decline has an effect on state aid. Most of our concern lies in the 9-12 grades. These levels have only 22-29 students while lower levels have nearly 40 students. We need to identify why students/families leave HCS.
Baseline Date for Enrollment in 2013-2014 School Year
K-31 7-37
1-39 8-31
2-41 9-29
3-38 10-24
4-34 11-25
5-33 12-22
6-35
  • Investigate scheduling. We need to focus on the use of our resources and if they are being used effectively. Many stakeholders feel we need more “help.”If you look at other area schools that have had to do more with less, we are overstaffed comparatively.
  • Examine the HCS tax base. This processincludes participation in budget vote, concert/arts performance attendance, open house, sporting events, coffee with the Superintendent/Board Members, and overall communications.
  • Examine regional employers/economy,employer contacts for student visits and experiential learning.
  • Examine family engagement, PTO, parent/teacher conferences, overall communications.
  • Consider HCS staff and faculty expectations and incentives,HCS students and alumniprojects involving Bobcat Pride and character education.
The Task Force is charged with creating SMART Goals and measurements that will allow us to assess progress, evaluate success and plan next steps.
Internal Analysis (Strengths and Weaknesses)
Strengths
  • Proper financial planning by previous boards and administration has allowed district to use savings and offset state aid cuts. Maintained programs.
  • Transportation with Olean-allows district to share some overhead costs which decreases HCS expenses and allows for immediate budget savings
  • Small size creates a private school atmosphere-administration , faculty and staff know individual students and may allow us to more easily “right the ship” financially.
  • Enrollment has increased slightly-Why? Is this due to district stability? Policy for out of district enrollment when other area districts are restricting or not allowing out of district enrollments (Allegany-Limestone, Olean and Cuba-Rushford)? Something else?
  • Good relationship with Town and Fire department-shared fuel depot.
  • Good Relationship with American Legion-donations from Legion to district have provided scholarships to students, offset travel expenses for student trips and donations to purchase supplies and offset student cost of local field trips.
Weaknesses
  • General Fund currently supports school lunch fund ($20,000)
  • Savings balances decreasing -current reliance on savings to balance budget cannot be sustained long term. Estimate 1-2 more years before savings are depleted.
  • Contractual obligations-locked in expenses with unknown future revenues.
  • Public Sector expectations/needs-high pension costs (17.25% TRS and 20.1% ERS) and low employee contributions to health insurance (5-12% vs. private sector of 15-20%+)
  • Student Enrollment decreases over last 10-15 years. This decreases some state aids.
  • During 2013-2014 school year, $44,900 loss of state aid due to building aid recalculation.

External Analysis (Opportunities and Threats)
Opportunities
  • Use of Strategic plan to align budget with student needs.
  • Connect 4-increase extracurricular offerings for HCS students with little or no cost
  • Expanded use of BOCES Services- Increased BOCES expense can increase revenue in future budgets.
  • Distance Learning-at one time HCS had most usage in CA BOCES region for additional student offerings.
  • Use of Booster Clubs and Educational Foundations in other districts. Could this be duplicated in Hinsdale?
Threats
  • 70% of revenue comes from NYS aid.
  • Tax Cap limitations and cap is not actually 2%.
  • Erosion of tax base-more organizations seeking “tax exempt status”-Railroad and Underwood Manor-increases taxpayer share of taxes and possibly makes Hinsdale a less desirable place to build business/homes.

Our Critical Issues:
  1. How do we restructure budget/spending to focus on needs rather than “the way it has always been”?
  2. How do we stabilize or increase enrollment to increase aid?AP courses, increased extracurricular
  3. How do we maximize use of BOCES services to meet needs and create revenue stream?Unknown-proposed BOCES presentation to BOE in March 2014.
  4. How do we increase HCS tax base?Somewhat out of the schools hands-normally through new business and/or home building.
  5. How do we market our district to attract families buying homes or out of district students to come to Hinsdale when seeking an alternative to their home school?Improved website, increased AP courses, increased extracurricular offerings
  6. How do we use marketing strategies and press campaigns to best position our district?Highlight positives-Science Fair, Charitable acts at holidays, etc.
  7. Does our district have a “brand?” What is it? Do we want to change it? Currently it appears to be poor rural school. Change is necessary to reach “premier status”.
  8. Who are our success stories? Successful AlumniHow do we tell the story? Invitation to return and speak to current students and post on website before and after presentation
  9. Could we become a destination district? Yes What is involved?Highlight current positives-availability of technology to students/staff,
  10. What are our largest expenditures? Personnel and BOCES Can we reallocate? Possibly
  11. What is in the category of fixed costs? Flexible?
  12. Do we take advantage of grant monies? Wehave applied for grants in the following areas: Physical Education, Shared Services grant to help move Connect 4 forward, Arts in Education, STEM.
  13. What distinguishes our district that we should leverage?
  14. What advice do our accountants and attorneys offer? Financially healthy currently however use of savings to fund on-going expenses cannot be maintained long term.
  15. Are there items we have yet to put into practice?

Our Research, Data and Best Practices

Note:For all areas, indicate source and learning.

Data
TBD (Use PLC Associates, Inc. Data Triangle)
  1. In house historic budget data and ongoing budget process
  2. Business First
  3. Rural Schools website
  4. Monthly General Fund Analysis presented to the Board of Education
  5. Office of the State Comptroller-Fiscal Stress Analysis

Research
  1. Look at/find other rural schools that have “done more with less”-Olean and Allegany Limestone locally.
  2. Enrollment issues-how do other schools increase enrollment which in turn increases aid?
  3. Look at Allegany Limestone budget Exit Survey as example for changes to Hinsdale process.
  4. Look at Olean Budget Advisory Committee .

Best Practices (
  1. Student based schedule
  2. Budget Advisory Committee utilizes a proactive approach in case there are programmatic cuts. This will educate general public who may not know how much state aid freezes /reductions and pension /benefit cost increases can affect the budget and overall operations.
  3. Zero based budgeting-identifies every expense.
  4. Cafeteria-profitable operations lead to more student options/choices. Extra funds can be used to increase offerings.

Task Force Final Report: Section B1

Strategic Intents Summary

Strategic Intents
Strategic Intents:
Note: The budget exit survey, given in the 2013-2014 school year is our baseline. All % increases will be taken in comparison to the data from this survey.
Starting in fiscal year 2013-14, we will reduce reliance on fund balance limiting use of savings to $250,000; subsequently 2014-2015 to $150,000, 2015-2016 to $0.
In the 2016-2017 school year, HCS will have a 40% increase in community satisfaction (as defined by the district making wise decisions in capital projects, being responsible in budgeting and taxation, providing value in education, using resources wisely and making financial decisions based on student needs) as measured by the re-administration of the budget exit survey. In addition, in the school year 2019-2020, HCS will benchmark with an 80% satisfaction rating as measured by the budget exit survey.
Mid-Cycle Goal – In the 2016-2017 school year, HCS will receive a 40 % increase in community satisfaction as measured by the re-administration of the budget exit survey in relation to financial management.
Benchmark Goal – In the 2019-2020 school year, HCS will receive an 80% community satisfaction rating in the budget exit survey in relation to financial management.
Starting in Fiscal year 2014-2015, we will reduce general fund contributions to cafeteria by $5,000 per year for next four years. By the 2018-2019 fiscal year the cafeteria will be self-supporting and the general fund will no longer budget financial support for the cafeteria operations.

Task Force Final Report: Section B2

Strategies and Action Plans

Strategy # 1
Starting in fiscal year 2013-14, we will reduce reliance on fund balance limiting use of savings to $250,000; subsequently 2014-2015 to $150,000, 2015-2016 to $0.
Action Plan
1.1 Maximize use of Race To The Top funds for Strategic Plan costs, APPR work sessions and to purchase assessment tools. (2013-2014) and (2014-2015).
1.2 Savings from two employee benefit changes (2013-2014 only).
1.3 March 1 deadline each year for any on-going expenses such as transportation, buildings and grounds and technology.
1.4 Board of Education monitoring-use of General Fund Analysis.
1.5 Focus budget on student needs.
1.6 Use of zero based budgeting-build budget based on specific STUDENT needs.
1.7 Revamp Requisitions-create space for educators to note which student need is being addressed with the purchase (2014-2015).
1.8 Prioritize Requisitions-Needs and Common Core requirements addressed first.
1.9 Strictly enforce budgeted expenses only. Because the funds were there, new programs and supplies were approved mid-year in the past. There should be no spending beyond budgeted amounts during any school year.
1.10 Continue energy conservation efforts (quantify reductions-look at historical budget data).
1.11 Grant opportunities with Connect 4 to increase student opportunities without increased costs. Connect 4 currently pay for grant writing services but no actual grants brought into districts.
Strategy # 2
We will educate our families and community around the processes and efficiencies use to budget, resource programs and provide for the learning needs of all students.
Action Plan
2.1 Invite parents into building while school in session (Board policy on volunteers and application similar to ALCS).
2.2 Continue use of brochures and postcards in budget process.
2.3 Offer to do budget presentation at PTO meeting.
2.4 Revise Budget Exit Survey (Example: Allegany Limestone Survey from May 2013)
  • The District makes wise decisions in capital projects
  • Is responsible in budgeting and taxation
  • Provides value in education
  • Use resources wisely
  • Make decisions based on student needs

2.5 Create Ad Hoc Committee-Budget Advisory or Finance (Example: Olean’s Budget Advisory Committee used to educate public on school budget process, requirements and restrictions).
2.6 “Did you know?” type section in newsletter to educate public.
Strategy # 3
Reduce $20,000 from general fund budget by creating a self-supporting school lunch operation over the next four years by decreasing costs and increasing revenues. This will be done through an initiative to offer student preferred meals and comply with all child nutrition guidelines.
Action Plan
3.1 Look at Preferred Meal Systems-have representative present to BOE and PTO (Feb or Mar 2014).
3.2 Investigate concepts used in the GST (Greater Southern Tier) BOCES for CA (Cattaraugus- Allegany) BOCES.
3.3 Work with the cafeteria manager to increase overall quality (example: burned pizza, soggy tater tots, soggy grilled cheese, tasteless vegetables, etc.).
3.4 Work with cafeteria staff to increase customer service skills.
3.5 Look at cost of a la carte items-are these priced to provide profit.
3.6 Use any suggestions from upcoming audit for improvements.
3.7 Send free and reduced application directly to families rather than include in newsletter. Increase completed free and reduced applications by including a Self-Address Stamped Envelope to return application and increase confidentiality.

Task Force Final Report: Section C

Summary and Recommendations

Task Force: / Date: / Facilitator(s):
Fiscal Stewardship / 3/26/14 / Jennifer Jaquith & Mark Ash
Provide a summary of your findings, including your data, research and best practices review.
Hinsdale Central School has been a financially stable district since the late 1990’s due to proper fiscal management by the Board of Education and previous administrations. In 2008, the state experienced severe financial issues which then affect aid to school districts. Since Hinsdale is 70% dependent on state aid, the district has had to rely on savings to balance budgets. This was done intentionally to preserve programs; however, it cannot be sustained long term.
The Fiscal Stewardship Committee was charged with comprehensively reviewing all district budgetary processes and procedures in order to assure the effective use of district resources and expenditures.
The Task Force spent four sessions between November 2013 and February 2014 reviewing the strengths, weaknesses, opportunities and threats outlined in Section A. We also reviewed and discussed:
  1. In house historic budget data
  2. On-going budget process
  3. Rural Schools website
  4. Monthly General Fund Analysis presented to the Board of Education
  5. Office of the State Comptroller-Fiscal Stress Analysis
After reviewing the above information, we found the following challenges impact our current reliance on savings to balance budgets:
1.Unpredictable factors (state aid take backs, common core needs not known before the budget was finalized)
2. Dependence on outside decision makers (SED, 70% state aid dependent, Governor’s budget projection, etc.)
3. Flat revenues and increasing expenses (stagnant tax base)
4. The School Lunch program relies on the general fund budget to support their on-going operations, which should be self-supporting.
The Task Force determined three strategic intents to address current financial challenges of Hinsdale Central School:
  1. Beginning with fiscal year 2013-14, we will reduce reliance on fund balance by limiting use of savings to $250,000; subsequently 2014-2015 to $150,000 and 2015-2016 to $0.
  2. Starting in May 2014, we will administer a budget exit survey, reflecting the following information. This will establish our baseline data. All % increases will be taken in comparison to the baseline data.
  3. The District makes wise decisions in capital projects
  4. The District is responsible in budgeting and taxation
  5. The District provides value in education
  6. The District uses resources wisely
  7. The District makes decisions based on student needs
Mid-Cycle Goal – In the 2016-2017 school year, HCS will receive a 40 % increase in community satisfaction as measured by the re-administration of the budget exit survey in relation to financial management.
Benchmark Goal – In the 2019-2020 school year, HCS will receive an 80% community satisfaction rating in the budget exit survey in relation to financial management.
  1. Starting in Fiscal year 2014-2015, we will reduce general fund contributions to cafeteria by $5,000 per year for the next four years. By the 2018-2019 fiscal year the cafeteria will be self-supporting and the general fund will no longer budget financial support for the cafeteria operations.
As a premier rural district by 2020, HCS will meet student and community needs by accomplishing the charge of the Fiscal Stewardship Task Force. HCS will use best practice strategies to implement strategic actions that achieve financially stable and responsible budgets. Current and future budgets will ensure quality programs within a fiscal culture that is responsible and sustainable.
Provide any recommendations relative to your SMART Goals, Strategies, Action Plans and the implementation of this work.

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