Cory-Rawson Fiscal Health Plan
Purpose
This Fiscal Health Plan is intended to provide a financial snapshot and history of Cory-Rawson Local Schools. This plan is also intended to offer the administration and Board of Education practical guidelines for decision making so that we can work to improve the long-term financial stability of the school system. Finally, we hope the plan will serve as a communication to our community about the work we are doing to be more efficient with taxpayer dollars.
Contents
Introduction
State Funding
Levy History
Financial Snapshot
Action Steps
Appendix/Tables
Introduction
Over the past five years, we have witnessed record numbers of Ohio school districts forced to go to the ballot time and time again. This has not slowed down and will not improve in the foreseeable future. There is a new state funding formula on the horizon and for the apparent future it does not appear that schools will be receiving additional funds. We essentially have to rely on three areas for our funding – state aid, local citizens, and our own efficient operation of our schools to conserve money. The local community has already burdened themselves with a levy for our new school building, in addition to an income tax and operating levies. This is exactly why this financial health plan is crucial – our school will not survive into the future if we cannot streamline our operations and improve the quality of the education we provide to students. The Cory-Rawson Board of Education has been entrusted to provide our students with the best education possible within the resources available to us. The primary consideration in the development of this plan, therefore, has been to minimize the negative impact of budget reductions on our students and staff. Priority has been given to not impact our students’ program availability and quality any more than absolutely necessary.
State Funding
The basis of school funding is poised to drastically change in the coming years. Our district must understand both our current situation and future issues that this revised funding may present. For Bridge Funding Formula please see Appendix A\
Highlights of HB 59 (2013)
- Creates “Core Opportunity Aid” in an attempt to place all districts at a per pupil land valuation of $250,000.
- 0% increase for 2013-14 for our district.
- We will not receive less funding in FY 14 than we did in FY 13.
- Funding to ESC cut – services provided will be charged back to our district (with no additional funds to offset this cost)
- Exceptional Cost Fund (statewide) draws 15% of special ed dollars from each district to create a statewide fund (which only benefits those educating students under the catastrophic IEP label)
- For a more complete summary see
Levy History
School District History of Voted Taxes – Cory-Rawson Local School DistrictElection Date / Levy or Bond Issue / Voting For % / Voting Against %
5/7/2013 / 0.75% Income Tax (5 year) / 58.16 / 41.84
11/3/2009 / $6,287,899 Bond Issue / 58.20 / 41.80
11/3/2009 / 0.50 Permanent Improvement Levy (new) / 58.20 / 41.80
11/6/2007 / 1.20 Mill Permanent Improvement Levy (renewal) / 51.14 / 48.86
11/6/2007 / 0.75% Income Tax (5 year) / 50.96 / 49.04
5/8/2007 / $8,756,374 Bond Issue / 43.42 / 56.58
11/4/2003 / 1.70 Mill Permanent Improvement Levy (renewal) / 70.23 / 29.77
11/4/2003 / 0.75% Income Tax (5 years) / 55.82 / 44.18
5/6/2003 / 0.75% Income Tax / 47.19 / 52.81
11/7/2000 / 0.50% Income Tax / 39.81 / 60.19
5/5/1998 / 1.70 Mill Permanent Improvement Levy / 58.90 / 41.10
5/6/1997 / 0.75% Income Tax / 39.40 / 60.60
11/5/1996 / 0.75% Income Tax / 42.82 / 57.18
11/2/1993 / 1.70 Mill Permanent Improvement Levy (renewal) / 53.97 / 46.03
5/7/1991 / 1.00% Income Tax / 55.82 / 44.18
11/6/1990 / 1.00% Income Tax / 42.97 / 57.03
5/8/1990 / 1.00% Income Tax / 47.87 / 52.13
5/2/1989 / 4.90 Mill Current Expense Levy / 50.35 / 49.65
Bold type denotes passed by the voters
Cory-Rawson Local Schools will need to renew its 0.75% Income Tax on or before November Election 2018.
Current Levies and Effective Millage Rate
General Fund (Inside millage)5.40
General Fund (Voted millage)27.40
Permanent Improvement (2007) 1.20
Effective Millage25.52
Millage Towards 20 mil floor20.001
Bond Issue5.00
Permanent Improvement (2009).50
Property Valuation Trend
Academic Results
District
Indicators Met / Indicators Met % / Performance Index / AYP Status / Overall Rating2012-13 / 18/24 / 75% / 97.5 / (Not Met) / N/A
2011-12 / 20/26 / 76.9% / 97.2 / Not Met / Effective
2010-11 / 21/26 / 80.8% / 99.8 / Met / Effective
2009-10 / 21/26 / 80.8% / 98.7 / Met / Effective
2008-09 / 24/30 / 80.0% / 97.3 / Met / Effective
2007-08 / 22/30 / 73.3% / 96.2 / Not Met / Effective
2006-07 / 23/30 / 76.7% / 96.3 / Met / Effective
2005-06 / 21/25 / 84.0% / 97.3 / Not Met / Effective
2004-05 / 16/23 / 69.6% / 95.8 / Met / Effective
Elementary
Indicators Met / Indicators Met % / Performance Index / AYP Status / Overall Rating2012-13 / 5/9 / 55.6% / 95.1 / (Met) / N/A
2011-12 / 5/5 / 100% / 99.2 / Met / Excellent
2010-11 / 5/5 / 100% / 103.3 / Met / Excellent
2009-10 / 5/5 / 100% / 102.7 / Met / Excellent***
2008-09 / 6/6 / 100% / 102.6 / Met / Excellent
2007-08 / 5/6 / 83.3% / 92.9 / Met / Effective
2006-07 / 5/6 / 83.3% / 93.7 / Met / Effective
2005-06 / 5/6 / 83.3% / 95.2 / Met / Effective
Middle School
Indicators Met / Indicators Met % / Performance Index / AYP Status / Overall Rating2012-13 / CRMS ceased to exist as a separate IRN when CR went to K-6/7-12 building split
2011-12 / 5/11 / 45.4% / 91.7 / Met / Effective
2010-11 / 6/11 / 54.5% / 93.7 / Met / Effective
2009-10 / 6/11 / 54.5% / 93.8 / Met / Effective
2008-09 / 8/14 / 57.1% / 90.6 / Met / Effective
2007-08 / 7/14 / 50.0% / 93.3 / Not Met / Effective
2006-07 / 8/14 / 57.1% / 92.5 / Not Met / Effective
2005-06 / 6/9 / 66.7% / 93.6 / Met / Effective
2004-05 / 7/10 / 70% / 93.9 / Met / Effective
High School
Indicators Met / Indicators Met % / Performance Index / AYP Status / Overall Rating2012-13 / 13/15 / 86.7% / 99.6 / (Not Met) / N/A
2011-12 / 12/12 / 100% / 104.0 / Met / Excellent
2010-11 / 12/12 / 100% / 106.7 / Met / Excellent
2009-10 / 12/12 / 100% / 104.4 / Met / Excellent
2008-09 / 12/12 / 100% / 108.1 / Met / Excellent
2007-08 / 12/12 / 100% / 104.2 / Met / Excellent
2006-07 / 12/12 / 100% / 107.1 / Met / Excellent
2005-06 / 12/12 / 100% / 103.3 / Met / Excellent
2004-05 / 7/7 / 100% / 104.6 / Met / Excellent
Areas of immediate financial concern – physical facilities
New Building/Connector - complete
Existing Building
Maintenance
Updates
Bus Maintenance Costs
Future Budget Plans
Building
MS Exterior
HS Windows
Video Surveillance - complete
Auditorium Steps - complete
Auditorium Seating
Auditorium Sound
Auditorium Lighting
Maintenance/Physical Grounds
While numerous day-to-day repairs are always popping up, it is imperative that our school plans ahead and utilizes the PI Levy funds to maintain and improve our facilities as much as possible. The taxpayers have graciously granted us two continuing PI levies and though the actual effective millage is less than originally approved, they are nonetheless an excellent source of funding for projects and maintenance that we would otherwise struggle to accomplish.
Please see Appendix A for a compilation of PI expenditures and plans for future projects.
Cafeteria Budget
The cafeteria manager will create a 3 year plan to improve the efficiency and cost of the cafeteria. Year 1 of the plan (to be implemented in the current school year) should involve research, methods, and professional development required to run the cafeteria based on existing structure with the aim to cut costs and maintain quality. Year 1 of the plan should also outline a restructuring and cost savings plan to be fully implemented in year 2. Year 2 should specify goals and deadlines for meeting cost savings – with the end goal for the year being a zero budget (no advances from the general fund). Year 3 should outline a plan to have the cafeteria budget incur fringe benefit costs of its workers. Thinking ahead, the 5 year plan is to have the cafeteria incur all associated costs (staff and materials) with a zero budget.
UPDATE:
As of June 2013 the cafeteria had a balance of $26,094 (compared with $6845 at the same time the previous year). It should be noted that the year-end balance includes a transfer in during the year of $20,858 (compared with last year’s transfer in of $13,817). Revenue was up by $1200, while expenses were down by $22,000. While efficiencies have been realized through staffing reductions, the cafeteria has not met its goal of a “zero budget”.
June 2014 Update – Cafeteria continues to improve. Total expenses are $15,000 less in 2013-14 compared to 2012-13. Total balance is $62,863, compared with $21,884 from 2012-13. Increase in total balance is nearly equally attributable to federal reimbursement increase of $20,000 over 2012-13 and a decrease in insurance costs of $23,000 from 2012-13. Cafeteria continues to increase/maintain lunch sale numbers and is now focused on increasing breakfast sales.
Bus Maintenance Costs
We are exploring two options in this area to control maintenance costs. One addresses the obvious issue of older buses and resuming the replacement schedule (1 new bus per year or every other year). Obviously we cannot maintain that schedule with new bus purchases, so we are examining the possibility of purchasing used, low mileage buses. We can purchase 1.5-2 buses at this rate for every new bus that we would be able to purchase. Generally at 30-50k miles the buses have most of the “bugs” worked -out of them and still offer another 100k miles of service (7-9 years for CR district, based on average yearly miles). In order to maximize efficiency we are looking for buses with passenger capacities greater than 77 (along with at least one additional wheelchair accessible bus).
The second option is to implement tiered bus routes (K-6 and 7-12) where the same buses are used to run two separate routes. While this will increase the total number of miles driven, it will decrease the total number of buses and drivers from 9 to 5 or 6 total routes. We will also be able to increase efficiency next year when Millstream goes down to one location. Tiered bus routes also offer the ability to replace the bus fleet at a quicker pace and to maintain higher quality spare buses (though we would carry less total buses, which also offers a savings on our fleet insurance).
We fully understand that purchasing new buses does require a capital outlay; we believe, however, that the savings in maintenance (parts/labor) and safety of newer buses will pay off in the long run.
UPDATE
In the summer of 2012 CR Schools purchased 2 used newer 78 passenger buses (2009 models) both with under 30,000 miles on them. Total purchase price for both buses was $131,000. This purchase was made using the bus purchase fund and the general fund dollars. The newer models should help us decrease our maintenance costs and stabilize our fleet of buses. After the purchase CR schools was able to sell its 2 oldest buses for $7000 (total).
Tiered routing has been implemented on a small scale with the opening of the new PK-6 building (thus increasing the number of riders who used to walk). It has become necessary to run an additional route during the AM and PM for Rawson and Forest Edge stops. Utilizing tiered routing (adding additional time to existing route) is the most efficient manner to maintain current services.
We continue the limited use of tiered routing in 2014-15. In summer 2014 we purchased 2 (older) used buses and sold two used buses with issues. The cost to the district was minimal and was solely done to improve the quality of the spare bus fleet at a low cost. In summer 2015 we will consider the option of purchasing 1-2 buses or leasing the same number depending on cost. We will continue to seek out a serviceable, low cost spare wheelchair lift bus to include in our fleet.
Athletics
BOE will pay for all regular season games bus trips that leave after bus routes return. Any games schedule for pre-season (scrimmages) will be charged to the Athletic Department. Trips that leave before a regular bus run returns (thus requiring a substitute driver) will have the cost of the substitute driver charged to the athletic department. The general fund will not advance funds to cover shortages – the budget must be a zero budget.
Professional Development
Cory-Rawson Local Schools recognizes the importance of training and professional development to ensure that the staff can effectively and efficiently do their job. Too often districts cut out professional development when times are tough. We aim to find creative solutions that will keep our costs down but still maintain the level of professional development that our Ohio Improvement Process team feels is necessary to achieve our academic goals.
- Over the years, the effective operating millage of our district has been reduced by state tax reduction factors from 39.50 mills to 25.68 mills. In just the last four years, for example, our 2007 levy has been reduced from 1.2 mills to .98 mills.
- The volatility of the state budget will continue to create numerous challenges for Cory-Rawson Local Schools. For example, over the next five years, the intangible personal property tax, which was paid by businesses for years, will now be completely phased out. The continuing stream of unfunded state and federal mandates makes the issue of inadequate state funding even more challenging. The current state budget proposes to maintain a status quo, but upon further analysis that is not entirely true. The state funding levels are, indeed, the same as last year, but the Stimulus and Ed Jobs money is not part of the funding, nor are several other areas of funding that have been cut or reduced (see HB 153). Based on our most recent 5 year forecast, Cory-Rawson Schools will receive approximately $200,000 less for each funding year.
- We have benefitted over the past few years from an overall increase to real estate tax collections. We do not believe this will be a continued trend, though we note that, historically, real estate tax collections should increase slowly over time). We treat this increased collection very conservatively with the approach that any increase now must be able to cover those “down times” in collection and ensure that we maintain a healthy cash balance. (11/14)
- The cost of items outside our control -- particularly utilities, health insurance, workers compensation, and fuel -- is consistently increasing at rates that significantly exceed inflation.
The Board of Education has charged the district’s new leadership team with studying every aspect of our current operation. This Fiscal Health Plan has been carefully considered and is based on program observation, candid analysis of our operations and programs, and discussion with school leaders, employee groups, and many others.
While we would like to insulate our staff members from the effects of expenditure reductions it is sometimes impossible to do so (as is clearly evidenced by the sacrifices already made in previous fiscal years). We must budget wisely so we can avoid cuts to staff and when we must make staff cuts we must do so with a careful hand because staff cuts have the most direct impact on student learning. It must be stated that staff costs (including salaries and benefits) represent a significant portion of any school’s budget (77-82% is the goal for most districts). The majority of the costs beyond salaries and benefits are fixed (or minimal). As evidenced in this document, the staff and citizens of Cory-Rawson Local Schools Community have supported us for many years. It is our hope that in developing this Fiscal Health Plan and continuing to abide by it as a guiding document and updating it as necessary we can reaffirm our commitment to working in partnership with all stakeholders in this district. We are here to be good stewards of the taxpayer’s money and put it to the best possible use to provide an excellent education for all of our students.
Fiscal Health Plan Goals
Goal I: Strategic Philosophy
We believe our goal should be to move slowly, but steadily, to restore the district’s fiscal health to at least the level it was a few years ago. As the graph below illustrates, for Fiscal Years 2000-2011, Cory-Rawson’s average True Days Cash – a measure of fiscal health developed by the Ohio Department of Education –averaged seven (7) True Days Cash. We believe it is essential to the long-term success and stability of the Cory-Rawson Locals Schools for us to restore our fiscal health to at least forty (40) True Days Cash within the next three fiscal years. This Fiscal Health Plan is an important first step toward achieving this goal. Accordingly, it has been and will continue to be the Board of Education’s intent to utilize this Financial Health Plan into the total operation of the Cory-Rawson Local Schools sustaining this philosophy over a long period of time.
TRUE DAYS CASH CHART
Goal II: Controlling Expenditures
Over the next few years, the interests of our students, staff, and taxpayers will all be inextricably tied to gaining better control over school expenditures and improving the long-term fiscal health of the Cory-Rawson Local Schools. In our effort to make the Cory-Rawson Local Schools amore efficient and effective district, we must plan and implement a program of expenditure reductions. Further, we must implement this plan as quickly as possible. The sooner we implement some reductions, the fewer reductions will ultimately have to be made.
Working together in a constructive and creative partnership with our district’s three employee organizations, we must find fair approaches (1) to reduce costs, (2) maintain the quality of Cory-Rawson’s educational program, and (3) maintain an employment environment for our staff that is competitive with other area districts. Negotiations are about building relationships and working together to find constructive solutions. We embrace this process as a key to the achievement of these three objectives. By working together, following this Financial Health Plan, and working in an environment of transparency we hope to make great strides in controlling expenditures.
Goal III: Planning District Revenue
As we all know, the community’s support for the Cory-Rawson Local Schools has been a major key to the success of our schools. Everyone associated with the school district tremendously appreciates the strong support our schools receive from the Cory-Rawson community. By voting for a 1.00% continuing income tax and a 1.2 and .5 mill continuous permanent improvement levies,our taxpayers are already doing much to restore the Cory-Rawson Local Schools’ fiscal health. The fact that these levies are continuing is crucial in helping us forecast for the future with more certainty. We have one remaining levy, a .75% income tax that will expire in 2013. It is our hope that our taxpayers will continue their strong support of our students by voting to make this a continuing levy. As we move toward the future, we will work to wisely plan for our schools’ future revenue needs, always bearing in mind the appreciation for the financial sacrifice our taxpayers are making to provide high quality schools for Cory-Rawson’s students, and a competitive compensation program for our district’s staff members.