Muscogee County School District Dr. John A. Phillips, Jr., Superintendent May 6, 2013
A. OVERVIEW WHAT WE ARE FACING Dr. John A. Phillips, Jr., Superintendent 2
HISTORIC REVENUE TRENDS Projected State funding for FY14 is $144 million This is below the FY05 QBE allotment 3
WHAT HAS HAPPENED SINCE FY 05? 4
WHAT HAS HAPPENED SINCE FY 05? Twelve year cumulative cost of Austerity Reduction: $141 million This includes a $21.2 million loss in FY14 Equalization grant has gone from a high of $31 million FY09 to $12.5 million in FY14 This represents a $14 million loss in the last four years alone Property tax revenue has remained relatively flat. Projecting 2% growth in the digest equates to $2 million No increase on the state salary schedule since FY 09 No increase on the management or support salary schedule since FY09 5
WHAT STEPS HAVE WE TAKEN? Work schedule adjustment (WSA) days for the last four years 6
WHAT STEPS HAVE WE TAKEN? Closed facilities/programs: Teenage Parenting Program (TAP), Academic Success Center, Evening School Program, consolidated Benning Hills and Muscogee Elementary Discontinued grants requiring matching local funds Closed annexes and moved students back to home schools 7
WHAT STEPS HAVE WE TAKEN? Other cost saving measures: Personnel adjustment through attrition Changed bell times Outsourcing custodial services in some schools Moved YRS back to a traditional calendar Delayed textbook adoptions Redirected bus and major technology purchases from general fund sources to SPLOST 8
WHAT ARE OTHER DISTRICTS DOING? Closing/consolidating schools Continuing WSA days Outsourcing various services: custodial, landscaping, transportation Reduction in force (RIF) Cutting programs Eliminating block schedule 9
WHAT ARE OTHER DISTRICTS DOING? Increasing millage rates Increasing class sizes Selling property Exploring discontinuing participation in State Health Benefit Plan for non-certificated employees Increasing use of staffing agencies for subs/temporary and other non-certificated employees 10
WHERE ARE WE TODAY? Preliminary FY14 revenue projections: $251 million This is $6 million less than FY 13 11
WHERE ARE WE TODAY? Original FY14 cumulative expenditure requests: $291 million This represents a budgeted current year revenue shortfall of $40 million 12
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ELEMENTARY QBE FUNDING QBE funding is based off of a school size of 450 enrolled in grades K-5 Current K-5 FTE is 13,747 14
ELEMENTARY THRESHOLDS Current School enrollment net of Pre K is as follows: 15
ELEMENTARY THRESHOLDS An elementary school is at prime funding when enrollment reaches or exceeds 450 not counting Pre-K Students 20 of 34 elementary schools are below prime Administratively alone, this means that the local digest must at a minimum cover $4,412,490 in personnel costs per year. 16
ELEMENTARY QBE FUNDING Source: QBE allotment sheet and weights for FTE Funding Formula published by GADOE 17
MIDDLE QBE FUNDING QBE funding is based off of a school size of 624 Current 6-8 FTE is 6,241 18
MIDDLE SCHOOLS THRESHOLDS Current School enrollment by location is as follows: 19
MIDDLE SCHOOL THRESHOLDS A middle school is at prime funding when enrollment reaches or exceeds 624. 8 of 12 middle schools are below prime enrollment Administratively alone, in Middle School Education this means that the local digest must at a minimum cover $6,235,734 in personnel costs per year. 20
MIDDLE SCHOOL QBE FUNDING 21
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AVERAGE CLASS SIZE BY LEVEL 23
FINANCIAL IMPACT OF INCREASING AVERAGE CLASS SIZE Student average per class increase Cost Savings 1 $4,350,000 2 $8,400,000 *Average per class over the entire District; actual class size will vary by school 24
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LATEST STUDIES Reducing class size does not significantly impact student achievement. A study done at Harvard University suggested that states implementing class size reduction initiatives have spent billions of dollars with little return for the investment. A comprehensive review of class size research studies rates lowering student/teacher ratios as one of the lowest level interventions to increase student achievement. 26
LATEST STUDIES Side by side data comparison indicates that when class sizes are smaller there is no significant impact on student outcomes. An effect size value of.21 was given as a significance measure causing many states and districts to abandon this as an intervention. The largest impact on positive student achievement is excellence in teaching. 27
LATEST STUDIES In the MCSD Title I schools, there are currently only seven teachers that are used as class size reduction teachers and those are concentrated in the middle and high schools; this number has reduced each year as schools realized that they were not impacting student achievement rates. 28
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POTENTIAL STAFFING ADJUSTMENTS Reduced Elementary K-5 certificated teaching position needs for FY 14: Reduced positions = 39 Projected Budget savings = $2,925,000 Reduced Middle/High School certificated 6-12 core content teaching position needs for FY 14: Reduced positions = 50 Projected Budget savings = $3,750,000 Current certificated K-5 resignations/retirements = 18 Current certificated 6-12 core content resignations/retirements = 31 30
POTENTIAL STAFFING ADJUSTMENTS 31
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2013-14 REPURPOSE, LEASE OR SALE SCHOOLS 33
2014-15 REPURPOSE, LEASE OR SALE SCHOOLS 34
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REDISTRICT STUDENTS - EDGEWOOD MAP 36
EDGEWOOD MAP 37
EDGEWOOD CLOSING ELEMENTARY SCHOOLS - EDGEWOOD CLOSING Total Impact on Receiving Schools 13-14 Projection Capacity Space From Edgewood New 13-14 Projection Over/Under % Over/Under BREWER 513 688 175 101 614-74 -10.8% EDGEWOOD 303 463 160-463 -100.0% GENTIAN 403 513 110 85 488-25 -4.9% RIGDON RD 447 675 228 83 530-145 -21.5% WESLEY HEIGHTS 457 513 56 34 491-22 -4.3% Totals 2123 2852 729 303 2123-729 -14.7% Grade by Grade Impact on Receiving Schools School Brewer PK K 1 Grades 2 3 4 5 Total Assignment Area 44 66 97 74 83 74 75 513 From Edgewood 9 24 17 18 19 14 101 Total 13-14 Projection 44 75 121 91 101 93 89 614 School Gentian PK K 1 Grades 2 3 4 5 Total Assignment Area 22 60 77 60 60 63 61 403 From Edgewood 6 15 15 14 18 17 85 Total 13-14 Projection 22 66 92 75 74 81 78 488 School Rigdon Road PK K 1 Grades 2 3 4 5 Total Assignment Area 44 74 69 63 70 58 69 447 From Edgewood 7 12 10 18 14 22 83 Total 13-14 Projection 44 81 81 73 88 72 91 530 School Wesley Heights PK K 1 Grades 2 3 4 5 Total Assignment Area 22 60 86 77 56 84 72 457 From Edgewood 2 7 6 6 4 9 34 Total 13-14 Projection 22 62 93 83 62 88 81 491 38
EDGEWOOD CLOSING DISTRIBUTION TO SCHOOLS Muscogee County School District Space Available School Assignment Areas Contiguous to Edgewood Elementary 13-14 Projection Capacity Space Portables Additional Space Over/Under % Over/Under BREWER 513 688 175-175 -25.4% CLUBVIEW 550 513-37 37 7.2% GENTIAN 403 513 110-110 -21.4% LONNIE JACKSON 412 513 101-101 -19.7% REESE RD 471 513 42-42 -8.2% RIGDON RD 447 675 228-228 -33.8% WESLEY HEIGHTS 457 513 56-56 -10.9% Totals 3253 3928 675 0 0-675 -17.2% Contiguous Areas - Clubview and Reese Road Eliminated (Enrollment and Charter) 13-14 Projection Capacity Space Portables Additional Space Over/Under % Over/Under BREWER 513 688 175-175 -25.4% GENTIAN 403 513 110-110 -21.4% LONNIE JACKSON 412 513 101-101 -19.7% RIGDON RD 447 675 228-228 -33.8% WESLEY HEIGHTS 457 513 56-56 -10.9% Totals 2232 2902 670 0 0-670 -23.1% EDGEWOOD = 329 Students 12-13 EDGEWOOD = 303 Students in assignment zone for 13-14 Contiguous Areas - with Disbursement of Edgewood Students 13-14 Projection Capacity Space From Edgewood New Enrollment Over/Under % Over/Under BREWER 513 688 175 101 614-74 -10.8% GENTIAN 403 513 110 85 488-25 -4.9% LONNIE JACKSON 412 513 101 412-101 -19.7% RIGDON RD 447 675 228 83 530-145 -21.5% WESLEY HEIGHTS 457 513 56 34 491-22 -4.3% Totals 2232 2902 670 303 2535-3205 -58.9% 39
TEACHER FINANCIAL IMPACT - $675,000 Grade by Grade Impact on Receiving Schools School Grades Brewer PK K 1 2 3 4 5 Total Assignment Area 44 66 97 74 83 74 75 513 From Edgewood 9 24 17 18 19 14 101 Total 13-14 Projection 44 75 121 91 101 93 89 614 School Grades Gentian PK K 1 2 3 4 5 Total Assignment Area 22 60 77 60 60 63 61 403 From Edgewood 6 15 15 14 18 17 85 Total 13-14 Projection 22 66 92 75 74 81 78 488 School Grades Rigdon Road PK K 1 2 3 4 5 Total Assignment Area 44 74 69 63 70 58 69 447 From Edgewood 7 12 10 18 14 22 83 Total 13-14 Projection 44 81 81 73 88 72 91 530 School Size Data School Grades Wesley Heights PK K 1 2 3 4 5 Total Assignment Area 22 60 86 77 56 84 72 457 From Edgewood 2 7 6 6 4 9 34 Total 13-14 Projection 22 62 93 83 62 88 81 491 40
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REDISTRICT STUDENTS MARSHALL MAP 42
MARSHALL MAP 43
MARSHALL CLOSING 13-14 Projections Capacity MIDDLE SCHOOLS - MARSHALL CLOSING Total Impact on Receiving Schools Availabl e Space Leaving Entering Total Change New 13-14 Projections Over/Under % Over/Under BAKER 497 688 191-150 290 140 637-51 -7.4% EDDY 463 613 150 0 98 98 561-52 -8.5% MARSHALL 390 675 285-390 0-390 0-675 -100.0% ROTHSCHILD 553 738 185 0 152 152 705-33 -4.5% Totals 1903 2714 811-540 540 0 1903 811 24.9% 44
MARSHALL CLOSING 13-14 TEACHER FINANCIAL IMPACT $600,000 45
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REPURPOSE SUMMARY FY13-14 47
REPURPOSE SUMMARY FY14-15 48
FY14 1. Close Edgewood School - $1,251,701 2. Close Marshall Middle School - $1,651,438 3. Prepare disposal of buildings not required for educational purposes) 49
REPURPOSE EDGEWOOD 50
FY15 1. Consolidate Cusseta Road ES and Muscogee ES in new school 2. Richards MS opens as all Magnet 3. Review 30 th Avenue 4. Move off Block Scheduling to Traditional 5. Revise Five Year Facilities Plan 51
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Issue: School Thresholds Solution: Reduce Number of Schools Over Time ELEMENTARY THRESHOLDS An elementary school is at prime funding when enrollment reaches 450 not counting Pre-K Students 20 of 34 elementary schools are below prime Administratively alone, in Elementary Education this means that the local digest must at a minimum cover $4,412,490 in personnel costs per year. MIDDLE SCHOOL THRESHOLDS A middle school is at prime funding when capacity reaches 624. 8 of 12 middle schools are below prime enrollment Administratively alone, in Middle School Education this means that the local digest must at a minimum cover $6,235,734 in personnel costs per year. TOTAL K-8 THRESHOLDS COSTS: $10,648,224 53
AVERAGE CLASS SIZE BY LEVEL 54
THE BUDGET TODAY Administration is striving to continue to reduce budgeted costs. The projected FY14 budget allocation has total revenues of approximately $251,000,000 55
THE BUDGET TODAY Total budgeted expenditures: Preliminary budgeted expenditures $291,000,000 Less: Fund balance reserves (20,000,000) Subtotal $271,000,000 Administration was asked to find an additional $20,000,000 to cut 56
PROJECTED ACTUAL FY14 SAVINGS Close Edgewood $1,251,701 annually Close Marshall $1,651,438 annually Class Size - $6,675,000 annually Total Annual Projected Savings - $ 9,578,139 57
NEXT STEPS May 6 th Board Consensus to hold Public Hearings on School Closings Human Resources will be preparing the reduction in force plan to be presented to the Board in June in preparation for the possibility of a needed RIF before the start of the 2013-2014 academic year under Board Policy GBKA Total Annual Projected Savings - $ 9,578,139 58
QUESTIONS? 59 MCSD Cost reduction options v2 final