Superintendent s Budget Message

Transcription

1 Superintendent s Budget Message With 107 schools, Guilford County is proud to have the third largest school district in North Carolina. We employ more than 8,000 staff members, and are the second largest employer in a 12-county area. Our mission is simple: Guilford County students will graduate as responsible citizens prepared to succeed in higher education, or in the career of their choice. Consistent with that mission, during the school year, we will continue to offer a variety of educational options to more than 68,000 students. From our magnet schools, where students can explore specialized strands of study, our Early College Academies, where students can get a jump start on the college experience, and our Middle College high schools, which provide an alternative to the traditional high school setting, we work hard to meet the needs of every student in Guilford County. During the past five years, Guilford County Schools has made impressive strides in narrowing the achievement gap and meeting federal Adequate Yearly Progress mandates. Our school district has been recognized regionally and nationally for the high number of students enrolled in our advanced placement courses, as well as our efforts to cut the district s dropout rate by approximately 50 percent. The Guilford County Board of Education consists of eleven citizens elected for staggered terms of four years. Nine members serve specific districts, with two representing the district in an at-large capacity. The Superintendent serves as secretary to the Board. The Board has no tax levying authority and is required to maintain accounting records according to a uniform state format. The Board receives funding from Guilford County, the State of North Carolina, and the United States Government, and must comply with the legal requirements of each funding entity. Faced with continued higher state and federal standards, our budget must protect core academic programs and services, including our commitment to academic rigor, equity and safety for all students. In addition, we must realistically address the growth in student enrollment while facing a weak economy. We live in a community where business leaders expect an educational system that fosters and supports economic growth and development; where parents have high expectations for their children s education; where taxpayers and elected officials expect accountability and a high return on the money they invest in their schools; and where student performance is the number one priority in all schools. Although state and federal budget forecasts continue to look grim, our commitment to public education and our children must not waiver. While our primary task is to set forth a financial plan for the coming year, we also want to share examples of the progress we have made in academic achievement and how tax dollars have been used wisely. 1

2 Our Curriculum Through our popular magnet/choice school program, Guilford County students can pursue a specialized educational strand in addition to the state-mandated traditional school curriculum. In , 14 elementary schools and one middle school offered magnet programs. Some of our elementary magnet schools even offer Pre-K instruction, which means that a child can embark upon the fantastic journey of learning at age four. With a wide variety of specialized magnet/choice theme offerings, Guilford County elementary students can select study areas that motivate and inspire them. For example, the Jones Elementary Spanish Language Immersion program enables students to develop a native-like fluency in the Spanish language by the fifth grade. Students can gain hands-on experience in journalism, public speaking and video production at the Bluford Communications Laboratory. The rich intricacies of the world s cultures are just a lesson away at Brooks Global, and Johnson Street Global Studies Extended-Year Magnet Schools. Magnet programs in the newly-renovated Brown Summit Middle School and the existing Southern Guilford High School began in August To offer our ninth through 12th grade students opportunities for tailored study, we present various high school option programs throughout the district. These offerings range from advanced academic programs to alternative learning environments, which differ from the traditional high school setting. Through participation and hard work, students are afforded an opportunity to gain real-world experience while in the classroom. Some programs even allow students to concurrently complete the latter years of high school and the first year of college at no cost to parents. Through a partnership between Guilford College and the Guilford County Schools, high school students can study advanced courses onsite at Guilford College. The Early College at Guilford provides high school students an opportunity to complete their studies in a rigorous, yet supportive environment. To address the needs of disconnected high school students, Guilford County Schools offers its successful Middle College program, which allows students to complete high school and earn tuition-free college credit. In , more than 140 students earned diplomas from one of Guilford County s four Middle College high schools; Guilford Technical Community College (GTCC), Greensboro College, Bennett College, and North Carolina A&T State University. Many of these students had dropped out or were planning to drop out of school. Now, most of these students plan to advance their education by attending college or enrolling in a technical school. Guilford County Schools is among the select school districts in the country that offer the International Baccalaureate (IB) curriculum to students. Because of the program s academic rigor, students are often given advanced standing and college credit based on their IB work. Those who earn the IB diploma 2

3 progress on to top colleges and universities across the nation and throughout the world. In the school term, the International Baccalaureate Organization gave final approval for Smith High School to offer its students IB courses. Grimsley High and High Point Central are the only two other high schools in Guilford County to offer this prestigious course of study. With a focused curriculum in math, science, English, Career and Technical Education course sequences, College Tech Prep (CTP) prepares students for four-year university and two-year community college degree programs in technical fields. Students completing a CTP course of study may apply for the GTCC Tech Prep Tuition Assistance Scholarship, which pays tuition and fees for an associate degree program. In , 301 Guilford County Schools graduates were awarded the CTP scholarship. Our Students Our Pre-K program has experienced a 90 percent increase since During the school year, 950 four-year-olds attended programs in 58 Guilford County Schools classrooms. These popular programs were funded with local dollars, Title 1 monies, Smart Start, and More at Four programs. The North Carolina Division of Child Development gave a superior rating to the pre-k program at Cone Elementary, the first Guilford County Elementary school to earn this rating. Through its After-school Care Enrichment Services, or ACES program, Guilford County Schools offers working parents access to quality after-school child care that is convenient and affordable. Nearly every elementary school in the Guilford County School district offers an ACES program for its students enrolled in kindergarten through the fifth grade. This popular service allows students to stay at school and to study and play with friends in a safe, nurturing and fun atmosphere until 6:00 p.m. This past year, ACES served nearly 3,700 students in 63 schools. In the school term enrollment is expected to increase. Because sports encourage physical fitness and mental prowess, the Guilford County Schools feature a variety of athletic offerings. Through their participation, students learn lifelong lessons in teamwork, determination and good sportsmanship. We re proud of our players, athletic directors and coaching staff for their time and commitment. GCS state athletic champion teams in included: Andrews - 2A Women s Track, Grimsley 4A Women s Soccer, Ragsdale 3A Wrestling, Smith 3A Men s Track Southwest 3A Men s Golf, and Western 3A Women s Soccer. 3

4 Three teams of Guilford County Schools students walked away with honors in the Odyssey of the Mind regional and state competitions and placed in the top ten percent that participated in the world competition. Odyssey of the Mind is a creative problem-solving contest in which student teams collaborate using their various talents to present a creative solution to two problems. One problem is presented months in advance and the team prepares to present its solution at the competition. The other problem is spontaneous, which means the team has no knowledge of the problem until they enter the room where it is presented to them the day of competition. Guilford County Schools is one of the pioneering districts in the state to require most of its eighth grade students to enroll in Algebra I or Concepts of Algebra. In the school term, a record three-fourths of the district's eighth grade students rose to the challenge, with an impressive 75 percent achieving a passing grade on the state's End-of-Grade tests. In the school term, we are again challenging our eighth graders by asking our top scorers to enroll in honors courses in high school. We eagerly anticipate their success! Nearly 200 Guilford County School students were recognized in the Scholastic Art Awards program. The program, in existence since 1923, recognizes outstanding creative achievements of students in grades seven through 12 at the regional and national level. Past national award winners have included Robert Redford, Truman Capote, and Andy Warhol. This year at the regional level, the Guilford County Schools produced 16 Gold Key Award winners, 17 Silver Key Award winners, and 161 Certificates of Merit. Our Progress Now in its third year, the Cool to be Smart celebration recognizes IB and Advanced Placement (AP) seniors who successfully meet the criteria for Guilford County Schools AP or IB Diplomas or Certificates. In , 237 seniors met program requirements and thus, were eligible to participate in this incentive program. To honor these achievers, Harris Teeter Neighborhood Markets, Inc. and Crown Automotive awarded five $1,500 scholarships, five laptop computers and a grand prize of a new car to one lucky winner. Enrollment in AP/IB courses climbed 140 percent since Minority participation in advanced courses skyrocketed 120 percent since the school term. As part of the federal No Child Left Behind legislation, public schools are required to measure students progress in reading and math on an annual basis. Schools that meet Adequate Yearly Progress (AYP) goals include those whose students in 10 designated subgroups successfully perform at grade level proficiency. Of the 105 Guilford County Schools included in the AYP analysis for the 2004 school year, 66 percent (69 schools) met AYP goals. This is a significant increase from the school year in 4

5 which 53 percent (54 schools) of Guilford County Schools made AYP. The majority of schools that missed AYP in the school year did so by just one AYP target goal. In the school year, 21 schools in Guilford County earned the states' new recognition, Honor Schools of Excellence. To earn the new recognition, schools must meet several rigorous criteria. At least 90 percent of test scores must rank at or above proficiency, and schools must meet AYP requirements of the No Child Left Behind federal legislation. Nineteen of the schools in Guilford County were named Schools of Distinction, meaning that percent of its students met or exceeded goals. Three schools in Guilford County: The Early College at Guilford, Greensboro Middle College and GTCC Middle College, were among the 10 most improved high schools in North Carolina. Falkener Elementary ranked among the top 25 most improved schools in the state. Guilford County School District's dropout rate is the eighth lowest out of the 117 school districts in the state. The dropout rate was 1.99 percent for students in grades Just four years ago, the dropout rate for grades 7-12 was 4.60 percent. Our Community Comprised of more than 33,500 members, the Guilford County Council of PTAs remains the largest child advocacy group in Guilford County. In the school term, the Community Foundation of Greater Greensboro awarded 37 Guilford County PTAs $35,000 in SPICE grants, which were used for reading projects, multicultural events, and parent education initiatives. To honor their service, the North Carolina PTA presented 28 awards to 25 Guilford County PTAs, two Guilford County Schools teachers, and the Guilford County Council of PTAs in Three years ago, Action Greensboro committed $5 million to the Guilford County Schools. Through its Commitment to Excellence committee, the Triad s business and non-profit organizations funded innovative programs that addressed literacy, student achievement and leadership. Consequently, students test scores have soared due to their participation in programs such as Literacy First, a research-based reading accelerator program, that has been implemented in 25 elementary schools, four middle schools and four high schools; Celebration of Excellence, an annual awards recognition program, which salutes the 15 most academically improved schools, and the Academic All-Star Camp, a three-week summer camp for rising ninth and tenth graders. The Commitment to Excellence program received national acclaim from the American Association of School Administrators who presented Guilford County Schools with its 2004 National Civic Star Award, that recognizes school districts nationwide who promote academic achievement through school and community partnerships. 5

6 Through partnerships with a variety of community organizations, tens of thousands of dollars are collected annually for our schools. Since 1996, the Tools for School campaign, sponsored by WFMY News 2 and Wal-Mart, has served more than 200,000 students. Organizers encourage shoppers to purchase school materials and drop them in designated bins at participating stores. Just last year, 15,000 students received new school supplies through this program. Now in its fourth year, the Fill the Bus campaign, sponsored by the Corporate Volunteer Council, a division of the Volunteer Center of Greater Greensboro, has this year, attracted more than 40 area businesses to partner with our elementary and middle schools to provide school supplies to our students. The Greensboro Regional Realtors Association's Get a Kid Ready for School program serves anywhere from eight to 13 elementary schools each year. Local Realtors collect money for the purchase of school supplies, and then deliver those supplies directly to the schools. Through its Together in Education program, Harris Teeter Neighborhood Markets contributed almost $90,000 in , which allowed Guilford County Schools to offer leadership and recognition programs to teachers and students. The time spent with a child is a worthwhile investment. Through tutoring programs administered by Communities In Schools in Greensboro and High Point, and funded by such entities as the United Ways of Greensboro and High Point, and Lorillard Tobacco Company, volunteers in the school year made more than 126,000 visits to students and logged in nearly 300,000 hours. So many in our community have stepped up to partner with Guilford County Schools. They have our greatest respect and our deepest appreciation. Our Growth Guilford County Schools carefully stewarded the funding provided by the $200 million bond approved by voters four years ago. In , we completed four of the five school projects included in the original bond program at a combined cost of $40,471,135. 6

7 Funds supported: The construction of Triangle Lake Montessori, a new 87,000 square foot school in High Point. This elementary school was completed in August 2003 and welcomed students at the start of the school year. The construction of Gillespie Park Elementary in Greensboro. This facility, consisting of 71,000 square feet of new and renovated space, opened its doors in August The addition of 13,336 square feet at Penn-Griffin Middle School. The first phase of this plan renovated for use an additional 4,676 square feet and included renovations of classroom and auditorium space. The second phase of 8,660 square feet included a new two-story building to support the performing arts school. The Page High School project added 36,695 square feet for 23 new classrooms and an enhancement to the school s media center. The project also included the addition of air conditioning and technology for the whole school. The Dudley High School project features 250,000 feet of new and renovated space. The replacement of the old Brightwood Elementary School in Greensboro. Brightwood Elementary teachers and staff welcomed over 600 students in January In January 2002, Hairston Middle School was opened to house more than 800 students. Enhancements to the following schools: Elementary schools: Alderman, Allen Jay, Bessemer, Cone, Florence, Frazier, General Greene, Lindley, Montlieu, Northwood, Oak Ridge, Sedgefield, Millis Road, Sedalia, and Wiley; Middle schools: Jackson, Jamestown, Kiser, Lincoln, Mendenhall, Southeast, and Welborn; and High schools: Andrews, Grimsley, High Point Central, Northwest, Smith, and Western The good news continues - as a result of careful management, the district has been able to include additional projects not previously outlined in the original 2000 bond. Some of these ongoing projects include additions and renovations at: Oak Ridge Elementary, Brown Summit Middle, Southwest High, Andrews High, McLeansville Middle, Sedalia Elementary and Southeast High. The cost savings has also allowed us to purchase various sites needed for school construction projects included in the 2003 bond issue, and for other site expansions needed to address safety and/or space issues. Furthermore, with the good work and cooperation of the Board of County Commissioners and its finance officer, more than $6 million was returned to the district s planning table to help fund more of our capital needs. In November of 2003, Guilford County residents overwhelmingly approved a $300 million construction bond, the second time in four years that a school bond was approved in Guilford County. Monies from that bond have been slated for the construction of new schools and replacement schools. In addition, bond proceeds will enable the district to effect much needed renovations and additions to our existing schools. Because of limited space, there were more than 7,000 students who attended school in mobile learning facilities in Our goal is to get current and future students out of trailers and into classrooms. With more than 9,200 new classroom seats being added over the next five years, Guilford County Schools is moving toward that objective. With continuing student enrollment growth, an ongoing program of facility construction will be needed. The fact is, even with the 2000 bond, we had to add more mobile units to accommodate both more students and smaller class sizes. We had 441 classrooms in mobile units in February 2000, but had 489 classrooms in mobile units in December Two new schools Gillespie Park Elementary and Triangle Lake Montessori Elementary opened in Brown Summit Middle School opened in

8 The following schools/projects are included in the $300 million construction/renovation bond program: Ferndale Middle Florence Elementary Gibsonville Elementary (replacement facility) Guilford Elementary (replacement facility) Guilford Middle Irving Park Elementary Jamestown Middle (replacement facility) Madison Elementary Morehead Elementary Northeast Middle Northeast High Northern Elementary (new school) Northern Middle (new school) Northern High (new school) Northwest Elementary (new school) Oak View Elementary Parkview Elementary Peck Elementary Peeler Elementary Pleasant Garden Elementary Ragsdale High Reedy Fork Elementary Southern Middle (replacement facility) Southern High Southwest High Special Education Center West Stokesdale Elementary Union Hill Elementary (replacement facility) Budget Process Budget development is a year-round process that begins in the fall of each year and continues until a budget resolution is adopted by the Guilford County Board of Education on or before July 1. Participation in the development process includes input from schools and central office departments as well as conducting a public hearing for stakeholders. The Superintendent s budget and budget message must be submitted to the Board of Education by May 1. 8

9 The Board of Education reviews the budget, makes changes as it deems appropriate, and submits its approved budget to the Board of County Commissioners no later than the May 15 statutory deadline. The County Commissioners must adopt a budget resolution that includes the county appropriation for the school system on or before July 1. In the event adoption of a budget resolution is delayed until after July 1, the Board of Education may make interim appropriations for the purpose of paying salaries and the usual and ordinary expenses of the local school administrative unit for the interval between the beginning of the fiscal year and the adoption of the budget. We are proud of operating efficiencies realized from utilizing procurement cards and a district-wide system. Procurement cards decrease the time between order and delivery of goods to teachers and other staff and reduce the number of purchase order and accounts payable transactions. The system reduces paper transactions and improves timeliness of communications. State funds are continually monitored, allowing us to shift local costs to state coffers whenever possible in order to maximize state and local resources. We have also taken a hard look at the business side of our house. We have focused on cost avoidance and cost reductions as means to generate meaningful savings in five key areas telecommunications, school food services, school bus schedules, custodial services, and space utilization of our current schools. Our efforts have yielded an aggregate annual savings of $3,920,000 which equals approximately 100 teaching positions (based on average teacher salary and fringe benefit costs for ). Equity Funding We believe that all children can learn, and we are committed to providing the resources and support to make that happen. Effective with the school year, allocations were more site-based than centralized and resources were weighted so as to provide additional resources to schools highly impacted by poverty (as measured by free and reduced lunch percentages). In and we designated such schools as Equity Plus Schools. Our budget contains a slightly different approach to equity funding. Elementary schools with free and reduced lunch percentages of 70 percent or more are designated as Equity +3 Schools. These 22 elementary schools have a 15 to 1 student to teacher ratio in kindergarten through third grade. Equity +2 Schools (9 elementary schools with free and reduced lunch percentages of 60 to 69 percent) have a 15 to 1 student to teacher ratio in grades K through 2. Elementary schools with free and reduced lunch percentages of 40 percent or more and middle and high schools with free and reduced lunch percentages of 50 percent or more are designated as Equity Schools. These schools have some $6.7 million additional dollars allocated to them with 90% of those additional resources allocated based on free and reduced lunch percentages and 10% of the additional resources allocated based on numbers of Level I and II students (students performing below grade level). In there are 43 Equity Elementary Schools, 10 Equity Middle Schools and 4 Equity High Schools. Attachment A reflects a listing of the Equity schools within each respective equity funding designation. Total Budget The total budget requested for is $523,529,260. This is composed of state, local, federal, capital outlay, school food service and ACES dollars. The Proposed Budget by Funding Source, Attachment B, shows budget line-items by funding source. 9

10 State Funding The state budget for is $289,276,939. This amount is based on the planning allotment of February 16, The planning allotment does not reflect adjustments for any legislated salary increases or changes in fringe benefit rates/costs. State allotments are funded on a formula basis with schools receiving three basic types of allotments: positions, months of employment and dollars or categorical allotments. While our growth in student enrollment will result in some additional state funding (positions/months of employment and dollars) for Guilford County Schools, we are very concerned about three devastating budget reductions contained in Governor Easley s budget proposal. Local Education Agency Discretionary Reductions - GCS share of the proposed $44,291,248 and $27,660,000 state-wide discretionary reductions will be approximately $3.5 million dollars. Our share is approximately 5 percent and is based on the fact that our ADM, or Average Daily Membership, represents approximately 5 percent of the total ADM for the state. 4% reduction - The General Assembly Fiscal Research staff recently asked the Department of Public Instruction to identify a 4% reduction of $262,823,493 from public schools statewide to help fill a projected education budget shortfall. If based on ADM, our school system s share of this reduction will be approximately $12.8 million dollars. You simply cannot reduce public school funding by 4% without significantly impacting the classroom. $15 million from the Public School Building Capital Fund Based on ADM, our school district s share of this reduction for will be $730,937 at a time when we have at least $300 million in identified school construction and renovation needs (in all likelihood, that figure will increase as we examine deferred maintenance needs during in preparation for the next revision to our 5-year state facilities plan). Public school funding as a percentage of the State s General Fund has declined from 52% in 1970 to 38.6% as proposed by the Governor for While the budget developed to date was based on planning allotments and information provided by the NC Department of Public Instruction, it is important to note that state funding is subject to change based on the budget passed by the Legislature. Budget development will be impacted by any additional state funding reductions of public education by the General Assembly. 10

11 Local Current Expense Fund and County Appropriations Development of the budget has been challenging. Factors driving my funding request include, but are not limited to, the following: Legislated salary increases of 2% for all employees $ 1,406,274 Increase in employer s FICA and retirement due to legislated salary increases $ 185,136 10% increase in employer s hospitalization insurance cost (changing from $3,432 per FTE or full-time equivalent to $3, per FTE) $ 445,306 Increase in employer s workers compensation insurance expense $ 62,860 Increase in employer s unemployment insurance expense $ 16,841 Increase in employer s dental insurance expense $ 430 Increase in employer s life insurance expense $ 2,152 Increase in utilities/energy costs due to: $ 3,587,345 increase of 72,792 square feet of air conditioned space in the district Dudley HS adjustment (235,879*( )) increase of 25% in utilities/energy expense Increase in maintenance/upkeep due to: $ 154,188 increase of 72,792 square feet of new/renovated space in the district Dudley HS adjustment (150,000*( )) Increase in gas/diesel fuel cost $ 158,383 Enrollment growth of 1,512 students $ 2,880,693 Increase in risk management costs due to: $ 103,272 increase of 5% in liability insurance increase of 4% in fleet insurance increase of 10% in property insurance increase of 10% in pupil accident insurance Decrease in transfer to charter schools $ (149,779) Revenue adjustments (increase in revenue projections) $ (9,272) Reinstate budget reductions of $11.24/pupil due to local funding $ 775,639 shortfall (total state and local shortfall = $4,281,759 less $3,506,120 [GCS share of statewide $44,291,248 AND $27,660,000 discretionary reductions] = $775, = Sub-total (= base budget increase in county appropriation request of 7.36%) $ 9,619,468 + funds to address out of school suspension, school climate and dropout rate $ 500, positions to reduce class size in ninth grade English and Math classes to 20:1 $ 727,531 in the district s 4 most impacted high schools positions to provide 45-minute planning period per day for all 4 th and 5 th grade $ 770,790 teachers +1 Hearing Officer and 1 Office Support position $ 88, buses to keep High Point Choice Plan ride to maximum of 65 minutes $ 281,600 +funds to increase teacher supplements as follows: $ 1,003,837 increase steps 2-9 from 9.925% to % (+0.75%); increase steps from 9.925% to % (+0.50%); and increase steps 25+ from % to % (+0.25%) TOTAL (= increase in county appropriation of 9.94%) $ 12,991,293 11

12 It is extremely important to recognize that the district has little or no control over the lion s share of these increases. The local current expense budget includes all local revenues of the school system. The largest of these is the county appropriation. The total amount of revenue requested from Guilford County for local operating expenses is $143,656,814. This represents a 9.94 percent increase in the county appropriation. Other local revenues include, but are not limited to, sales tax refunds, fines and forfeitures, rental of school property, interest earned, indirect costs and categorical/restricted funds. The total local current expense budget for is $156,424,699. Based on this data, if adequate levels of funding are not provided from state and local sources, principals could be faced with making one of the following three levels of budget reductions from their school-based allocations. Level one would be the GCS share of the state-wide discretionary reductions outlined above. Level one equates to approximately $3.5 million or $52.00 per pupil. Level two would be the GCS share of the state-wide discretionary reductions outlined above plus the local base budget request less growth for student enrollment. Level two equates to approximately $10.25 million or $ per pupil. Level three would be the GCS share of the state-wide discretionary reductions outlined above plus the total local budget request. Level three equates to approximately $16.49 million or $ per pupil. Meetings will be held with elementary, middle and high school principals to explain the site-based budgeting concept and to review the preliminary school-based allocations. Principals will be advised to calculate and submit cuts in their school-based allocations equal to the level two amount of $ per pupil. Principals will also be advised to calculate the cuts needed for level one and level three reductions. This approach allows principals and their leadership teams versus administrators or board members to determine the budget reductions at their respective schools. Guidelines will be provided as to which positions/dollars are discretionary and which are excluded from position trade-ins and/or funding reallocations. My local budget request includes some funds to address suspensions, school climate and the dropout rate as well as funds aimed at retaining employees and improving working conditions for employees, particularly teachers. The $500,000 targeted for suspensions, school climate and the dropout rate will be used to fund Undoing Racism sessions conducted by Crossroads Ministries and other similar organizations as well as training in classroom management and high expectations for all students. The additional hearing officer and office support positions are included in an effort to conduct student hearings in accordance with the timeframes specified in administrative procedures JD-P (Student Discipline) and JDE-P (Student Expulsion). My budget includes 18.5 additional teaching positions to reduce class size in ninth grade English and Math classes to 20:1 in the district s 4 most impacted high schools. Teachers with small classes can spend time and energy helping each child succeed. Smaller classes also enhance safety, discipline and order in the classroom. When qualified teachers teach smaller classes in modern schools, kids learn more. It's common sense, and the research proves it works to increase student achievement. The benefits of smaller classes are now widely acknowledged. Few education issues have been studied more than the effect of class size on student achievement. But until Tennessee s longitudinal class-size 12

13 study Student Teacher Achievement Ratio (STAR) project results were contradictory and inconclusive. The STAR project showed that those enrolled in small classes as youngsters were more likely to: Graduate on time 72 percent of students, versus 66 percent from regular classes and 65 percent from classes with a paraprofessional; Complete more advanced math and English courses; Complete high school 19 percent dropped out, versus 23 percent from regular classes and 26 percent from classes with a paraprofessional; and Graduate with honors. The additional 19.6 teaching positions to provide 45-minute per day planning periods for all fourth and fifth grade teachers will afford opportunities for extensive and meaningful teacher collaboration. The complexities introduced by a new curriculum or by the need to refine an existing curriculum are challenging. Teacher teamwork makes these complex tasks more manageable, stimulates new ideas, and promotes coherence in a school's curriculum and instruction. Together, teachers have the organizational skills and resources to attempt innovations that would exhaust the energy, skill, or resources of an individual teacher. The conclusions that one draws from the experiences of closely orchestrated, taskoriented groups in schools are consistent with conclusions drawn from other studies of organization: The accomplishments of a proficient and well-organized group are widely considered to be greater than the accomplishments of isolated individuals (Little, 1987, p. 496). Thus, schools benefit from teacher collaboration in several ways: Through formal and informal training sessions, study groups, and conversations about teaching, teachers and administrators get the opportunity to get smarter together. Teachers are better prepared to support one another's strengths and accommodate weaknesses. Working together, they reduce their individual planning time while greatly increasing the available pool of ideas and materials. Schools become better prepared and organized to examine new ideas, methods, and materials. The faculty becomes adaptable and self-reliant. Teachers are organized to ease the strain of staff turnover, both by providing systematic professional assistance to beginners and by explicitly socializing all newcomers, including veteran teachers, to staff values, traditions, and resources. (Source: NCRVE - The National Center for Research in Vocational Education) When our three districts merged in 1993, our teachers enjoyed the highest local teaching supplement in the state. In the years following merger, our teacher supplement slipped to approximately eleventh in the state. During the past three years, we have redirected local dollars in our budget and added approximately $3.8 million to those supplements raising them to around seventh in the state. Our teachers are doing a tremendous job. And while our retention rate has been good, we still face a serious teacher shortage in the district, state, and nation. During the school year, we experienced shortages in many areas such as exceptional children, math, and science. This budget proposal calls for the addition of $1.0 million in local funds to raise our teacher supplements. Based on teacher supplement schedules/data, It would take approximately $4 million dollars to raise our supplements to third in the state (excluding Chapel Hill-Carrboro). 13

14 On February 9-10, 2005, Dr. Chuck Achilles, author, lecturer, and professor, met with elementary principals and teachers about the benefits of lower class sizes. Dr. Achilles was the lead researcher of the 1984 Tennessee STAR (Student Teacher Achievement Ratio) Project. He discussed the results of the STAR class size study as well as research conducted in Burke County, North Carolina and research conducted in the High Point City Schools prior to merger of the Guilford County Schools. During the past 20 years, Dr. Achilles has been studying the effects of small class sizes (13-17 students) on the achievement and development of kindergarten through third-grade students. Particularly focusing on the STAR study (the other two studies support the same findings), he made the following points: Students in classes with a class size average of one teacher per 15 students had the highest academic performance of any of the three groups. Students in classes with a class size average of one teacher per 24 students had the second highest academic performance of the three groups. Students in classes with a class size average of one teacher per 24 students with a teacher assistant had the lowest academic performance of the three groups. Grade 3 students who had been in a teacher assistant class for four years did not perform significantly better than did students in regular classes on any achievement test. No group, regardless of grade duration in a teacher assistant class, performed significantly better in mathematics. The amount of disruptive or inattentive/withdrawn (nonparticipatory) behavior, as rated by the teachers, was no different from those classes with teacher assistants and those with small class size. It appears that participating in a teacher assistant class in kindergarten through Grade 3 has no positive effect on students learning behaviors in Grade 4 and conceivably has a small negative impact. In contrast, students attending small classes in K-3 have significantly better learning behaviors in Grade 4 than students in assistant classes. To be more consistent with the findings of research on the benefits of class size, Dr. Achilles recommended that we should Make sure that all kindergarten students in 15 students to one teacher classrooms are randomly assigned to classes; no homogeneous grouping and no parent selection of teachers. These kindergarten students should be kept together in cohort groups through Grade 2 and through Grade 3 if possible. The district should expand its class size reduction program from grades K-2 to K-3 in current schools. The district should seek funding to reduce class size to 15 students to one teacher in more schools and eventually to all elementary schools in grades K-3. Clearly define roles and responsibilities of teaching assistants, perhaps designating subclassifications of paraprofessionals with different functions. Develop an institutionalized program of continuing professional development and training for teacher assistants and for teachers using teacher assistants particularly in the area of English as a Second Language. Consider using teacher assistants for administrative, non-teaching duties. Work with local universities and colleges to design program that would lead teacher assistants towards earning teaching degrees. 14

15 Therefore, based on class size research here in Guilford County and across the county, my budget also includes reallocations of teacher assistants. We have a total of 740 teacher assistant positions to work with (723 state + 17 local). We will use approximately teacher assistants to reduce class size to 15 to 1 in our Equity +3 and Equity +2 schools. We will allocate one teacher assistant to every kindergarten class (=293 teacher assistants) and we will allocate the remaining assistants at the student to teacher assistant ratio of to 1 for grades 1 through 3. No elementary school will be allocated less than 3 teacher assistants for grades 1 through 3. In , the student to teacher assistant ratio for kindergarten through third grade was to 1 (excluding teacher assistant trade-ins to reduce class size). We will use 11 of the local teacher assistants (positions available because Fairview and Hampton will no longer be designated as High Priority Schools in ) plus 3 of the 88.5 teacher assistant positions estimated to be available at the end of due to vacancies and individuals that will not meet the No Child Left Behind highly qualified criteria, to create 14 intermediate substitute/test coordinator positions in the high schools. The maximum time that these substitutes can work for any teacher will be 5 consecutive school days (excluding weekends/holidays). These positions will be paid on the teacher assistant salary schedule plus a flat $5,000 supplement (redirected from teacher substitute dollars). Elementary schools will have the option of trading a teacher assistant position for an intermediate substitute/test coordinator position. The $5,000 in supplement dollars will be allocated only to those elementary schools opting to make the trade. We have also allocated intermediate substitute/test coordinator positions to all the middle schools; however, these positions hinge on the budget actions of the General Assembly. If the budget cuts we sustain materially impact our teacher assistant allotment, the middle school intermediate substitute/test coordinator position allocations will be rescinded. Federal Funding The federal budget for is $32,152,089. This amount is based on the planning allotment of March 30, The planning allotment does not reflect adjustments for any legislated salary increases or changes in fringe benefit rates/costs. Federal grants typically have different fiscal years than those of the school district; therefore, some carryover of federal funds is likely to occur. My federal budget does not include any projections/estimates of carryover amounts. The federal budget will be amended in when the carryover amounts are confirmed by the North Carolina Department of Public Instruction. While the federal budget developed to date was based on planning allotments and the most recent information received from Washington, DC, it is important to note that federal funding is also subject to change based on legislative action. 15

16 For the first time since the mid-1980s, President Bush has proposed to cut funding for education. In his FY '06 budget the president proposes a $530 million cut, or 0.9 percent, totaling a federal commitment of just $56.0 billion. In addition to the overall cut, the president has proposed the elimination of more than 48 education programs totaling $4.3 billion. The few increases within the education budget are limited to minimal increases in Title I, IDEA and Pell Grants. The president decided to "take advantage of the deficit" to justify the minimal program increases and overall cut for education. The focus, as the president pledged in his State of the Union speech, will be on Social Security and another round of massive new borrowing to implement his plan for the retirement entitlement program. Special Education state grants would increase by only $508 million under the president's budget proposal; the smallest increase proposed in the past five years. Title I would increase by $603 million under the Bush budget proposal; but the increases would only be targeted to schools with a high concentration of poverty. Funding Year 2006 Budget Proposal eliminates funding for the Perkins Career and Technical Education Program to pay for the NCLB High School Initiative. The Rural Education Achievement Program (REAP) is level funded at Funding Year 2005 levels. Bush budget robs from K-12 education programs to provide the increases for other programs. President Bush has proposed to eliminate over 48 programs from the U.S. Department of Education out of the total 150 proposed elimination in the entire budget. Capital Outlay The capital outlay budget for totals $13,576,001. The budget includes $10 million in local option sales tax dollars and $3,576,001 in Public School Building Capital Funds (PSBCF) [per the 10-year planning projections provided by the School Planning Division of the North Carolina Department of Public Instruction]. The PSBCF projections have not been adjusted for the $15 million dollar reduction included in the Governor s proposed budget. The local option sales tax dollars are typically used for projects such as, but not limited to, mobile classrooms (purchase/setup/refurbish), roof repair and/or replacement, environmental/ada compliance, system-wide renovations, safe school program (fire/smoke/security alarms, intercom/telephone systems), HVAC/boiler/chiller repair/replacements, underground storage tanks, athletic facilities, 16

17 paving/resurfacing, instructional equipment and vehicles (activity bus and maintenance, transportation, courier, technology and/or warehouse/surplus property service vehicle replacements). The PSBCF program is funded using a portion of the corporate income taxes which are assessed corporations doing business in the state. Monies in the fund are allocated based on average daily membership as determined by the State Board of Education. Proprietary/Enterprise Funds Services for which the district charges a fee are generally reported in the proprietary funds. The district has two proprietary (enterprise) funds - the School Food Service Fund and the After School Care Fund. The School Food Service Fund is used to account for the board s child nutrition or food service operation. Any reduction of federal funds for this program will require us to implement one or more of the following: reduce costs where possible, increase meal prices and/or implement more satellite meal programs. Any reduction in state funds may also require elimination of the free kindergarten breakfast programs. The After School Care Fund is used to account for the district-wide ACES or After School Care Enrichment Services initiative targeted for all elementary schools. We used budget figures in my budget request to estimate the proposed School Food Service Fund budget of $25,866,823 and the After School Care Fund budget of $6,232,709. Competitive Factors The school system has faced many challenges in recent years. During this time, we have successfully managed a $257 million dollar building program. We have received an unqualified audit opinion on each of our audits. For the past ten years, we have received the Certificate of Excellence in Financial Reporting from both the American School Business Officials (ASBO) Association and the Government Finances Officers Association (GFOA) of the United States and Canada. We have also received the Distinguished Budget Presentation Award from GFOA for the past five years. This award is the highest form of recognition in governmental budgeting. We obtained certification from the International Standards Organization (ISO) in January ISO is a non-governmental management system that collects and studies data from businesses and school systems to help them operate more efficiently. Certification helps school district employees and departments finetune their work, reduce costs, improve communication and enhance public confidence. Only a few school systems in the United States are certified by ISO, and GCS is the only system in the state to ask for the voluntary certification. 17

18 These accomplishments are the result of a dedicated and competent staff, a supportive board, and a supportive community. The end result of all this has been continued improvement of programs and outcomes for our students. Conclusion The Guilford County Board of Education has once again demonstrated exemplary leadership in support of a high quality education for all students. The bar has been raised to an unprecedented level by the No Child Left Behind legislation and its sanctions on schools that fail to make adequate progress. This challenge is magnified by the fact that percent of our students are from economically disadvantaged homes (per February 2005 free and reduced lunch data) and are often educationally deprived when they enter school. Through the commitment and hard work of teachers, principals, and other employees as well as the support of parents, our community, the Board of Education, and Board of County Commissioners, student achievement has risen to the highest level in the history of the Guilford County Schools. Regardless of the requirements of federal mandates, the goal of our school system has been and continues to be the provision of opportunities for the highest levels of academic achievement for all students. Continued academic success requires prioritization and focus of resources. Existing resources, both human and financial, will be continually examined and aligned to maximize efficiency and effectiveness. In our business, classroom teachers and quality instruction are critical to student success. With that in mind, we are committed to providing the highest quality academic programs, maintaining a safe and orderly learning environment and providing equity. The proposed budget addresses each of these areas and provides Guilford County schools with an opportunity to continue our progress toward achieving and exceeding the mandates set forth in this new era of accountability. Terry B. Grier, Ed.D. Superintendent 18