FinanceCommittee Meeting Minutes
November 14, 2014
Board Directors in Attendance:RebeccaGagnon, Alberto Monserrate, Kim Ellison, Josh Reimnitz, Mohamud Noor and Chair Mammen.
Approval of AgendaMotion made to approve agenda with an adjustment to order of topics, motion seconded and motion carried.
Approval of MinutesMotion made to approve minutes for Novemberas written.
FY14 Preliminary Financial Results – Art Alexander
Art reviewed the FY Preliminary Financial Results (below)
FY14 Preliminary Financial Results
SBA Update – Tammy Fredrickson
Tammy reviewed the SBA Update (below)
Student Based Allocations 11-14-14.pptx
Budget Reduction Plan – Robert Doty
Things we are doing are:
- Sweeping budgets – looking at non-salary cost and asking budget managers to reduce by a certain percentage.
- Contracts – reviewing to see if any can be delayed or not done at all.
- Hiring freeze – unfilled positions scrutinized and questioned.
- Streamlining central office – where we can look at reductions and efficiencies.
Question was raised by Chair Mammenregarding the recent realignment and what the result will be? Michael Goar addressed and stated that we are determining what the optimal size is for central office. We need to make sure resources are out to schools and not at central office. Currently a 60/40 split that we are trying to manage differently in lite of SBA as we begin to talk about more site-based management, what should be central office redesign. This gives us a unique opportunity to look at the size and core function of central office.
Director Monserrate asked if there is anything more coming relative to the budget reduction plan in conjunction with the expectation set at the board meeting. Robert Doty stated that as we hone in on the projected shortfall that we need to cover, then we can provide more detail on those actual dollars.
Robert confirmed with Director Monserrate that the OCR portion will be implemented this year; with $5M over three years and approximately $1M hitting this year. Director Monserrate said he would like to see accounting on those $5M.
Robert stated that he can get the detail costing of the OCR plan, but it’s a moving target. Robert provided more detail to the points above. Sweeping budgets will be 20% of non-salary cost. In our current situation we believe it’s somewhere between $5-$10M. The contract review is another $3-5M. The hiring freeze is 75 positions at $3-4M. We also have a variance that we will take in this year between $2-3M. We have leverage to pull to make sure we can stay in balance or as close as we can. There were things added this year that we are trying hard to absorb i.e. issues with the 900 students, the OCR plan, and Office of Black Male Achievement. We have enough room to more than absorb these items and Robert will provide detail.
Director Monserrate questioned the dollars being utilized relative to the 900 student enrollment shortfall and this in turn giving us smaller classroom sizes.
Director Mammen asked Robert Doty if the $5M cost estimation relative to the OCR includes collaborative funding, i.e. relationship we have with the county and mental health providers with our 30/30/30 Prevention and Intervention? Robert believes that it was costed assuming we weren’t going to necessarily have a lot of collaboration.
Director Noor asked Robert for an example of contracts that we don’t need at all and for clarification on efficiencies. Robert stated we will meet with budget managers to review contracts. Our findings could reveal contract work that could be delayed, maybe a recurring contract price could be reduced, variety of different ways to look at it. There is no specific list of contracts to cut, but rather meet and discuss options to gain traction. Director Noor asked the total being spent on contracts. Tammy Fredrickson said we have $30M budget for contracts including construction and architectural contracts.
Director Reimnitz would like an example for what would fall under the 20% budget reductions. Robert stated that examples would be travel, supplies, contracted services, or anything that is non-salaried will be reviewed. This is up to 20%, not a flat 20%.
Director Gagnon stated that questions will be raised as to why we haven’t already made budget cuts since we are now potentially cutting $13-22M in administration. It was requested thatRobert address this in the near future.
Director Gagnon voiced concern about the 4,000 students we lose every year and if we retained 1,000 we would have our 900 back and wouldn’t have to be doing these cuts. What is our retention plan? Robert stated that Courtney Kiernat has started putting plans (a process) in place on how to retain students and we will quantify this as well.
Director Gagnon stated that relative to OCR she doesn’t want the school district to take on responsibilities that should be done by other agencies. It’s our responsibility to make sure the agencies are doing it, but not pay for it. Robert suggested at the next Finance Committee meeting we invite the behavior team and Susanne Griffin to cover what we’re suggesting. Robert will provide the OCR documentation to the entire board.
Levy/Bonds Update – Robert Doty and Art Alexander
LEVY UPDATE: Robert stated a plan will be presented in December that will reduce the levy from 4.5% to 3.9%. Of the six major capital projects, the Wilder project is the only one to be delayed. The Wilder dollars will be substituted for the expansion of Washburn. Robert presented a handout showing details of what Phase I and II look like for the Washburn expansion. Total dollars are between $8.3 -$8.5M.
Director Noor inquired about the plan for Wellstone. Michael Goar stated that we are looking at how we access our English language learners. We’re now discussing whether Wellstone is for over-aged, under-credited students who are looking for a different level of service versus putting all the English language learners in one setting? We are also looking at having different programs at each of the comprehensive high schools as well. Do we have adequate space, materials and teachers to deliver our services? We are still looking at part of Wellstone not being there or moving Wellstone to a different setting.
BOND UPDATE: Art stated we have meetings scheduled with ratings agencies where they rate our bonds. At the December 9 Board meeting, we will have a resolution on what we’ve sold and what the price is going to be.
Update on PEL – Robert DotyTabled until December 14 Finance Committee meeting.
AdjournMotion made to adjourn, seconded and carried.
Meeting adjourned.