Reorganization Study. Robert G. Rogers. Version 2 (Revised for Internet Publication)
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1 Reorganization Study Robert G. Rogers Version 2 (Revised for Internet Publication)
2 Why Version 2? Those, who did not attend the meeting, missed the explanations of many of these slides. In this version (Version 2), I have made notes on several slides and added several additional slides to help clarify the information. The 2014 District Report Card information contained results from the 2013 school year information will be in the 2015 report. Financial Information was taken from the latest (2014) audits of each school district and from the Illinois State Board of Education (ISBE) website. Information regarding General State Aid (GSA) and Transportation are current. New slides will have a green background. The financial information included in the study should be used as examples only. The numbers will change because the new district will not begin until July 1, 2017.
3 PURPOSE The purpose of this study was to examine the financial impact on the taxpayers of Kewanee and the educational benefits of combining the Kewanee Community Unit School District No. 229 and the Wethersfield School District No. 230.
4 Kewanee
5 Wethersfield
6 Reorganization Options 1. Consolidation 2. Annexation 3. School District Conversion 4. School Deactivation 5. Partial Elementary Unit Formation 6. Cooperative High School
7 Consolidation is the merger of two or more existing districts to form or create a new district. Note: The Committee of Ten only wanted the information regarding consolidation for this study. From 2007 to 2015 there have been 24 reorganizations: 8 consolidations, 9 annexations, 4 deactivations, and 3 others. Henry County is comprised of 9 school districts plus the Henry-Stark Special Education Cooperative and educates approximately 8,500 students.
8 Report Cards Enrollment Facilities Curriculum Athletics & Activities Transportation Finance Incentives Areas Studied Note: This information was taken from the 2014 School District Report that contained results from the 2013 school year.
9 ISBE Report Cards Information Test Scores Diversity Mobility Limited English Attendance Rate Percent IEP Graduation Rate ISAT ACT PSAE
10 ISAT Reading Scores
11 PSAE Students Meeting or Exceeding in FY13
12 Kewanee 2014 ACT Results Note: A score of 21 is considered to meet
13 Wethersfield 2014 ACT Results Note: A score of 21 is considered to meet
14 5 Year Enrollment
15 Combined Enrollment
16 Kewanee Enrollment Fluctuations K This shows how class size changes from year to year.
17 Wethersfield Enrollment Fluctuations K This shows how class size changes from year to year.
18 Projected Elementary Enrollment 2016 to 2020
19 Combined Projected Junior High
20 Combined Projected High School
21 Area School District Enrollment School Year 1. Cambridge No Colona No Princeton HS No Galva No Stark County No Orion No Riverdale No Bureau Valley No Princeton Elementary No Sherrard No Kewanee/Wethersfield 12. Geneseo No East Moline No Galesburg No ,043 1,050 1,076 1,219 1,521 2,499 2,551 2,622 4,438
22 Area High School Enrollments School Year 1. Sherrard 2. Princeton 3. Macomb 4. Rock Falls 5. Harvard 6. Mt. Zion 7. Canton 8. Kewanee/Wethersfield 9. Pontiac 10. Sandwich 11. Peoria Manual 12. Peoria Notre Dame 13. Geneseo 14. Morton
23 Facilities Kewanee Belle Alexander - K & 1 Lyle PreK Center Irving 2 & 3 Central Elem. 4-6 Central JH 7 & 8 High School 9-12 Franklin Alternative Neponset PreK - 8 Franklin will not be utilized in the school year. Reorganize Neponset Wethersfield Elementary Grades PreK 6 Junior High Grades 7 & 8 High School Grades 9-12 Blish Building HS Classes All buildings will be used
24 Curriculum Curriculum and Financial advantages are probably the two most important reasons for reorganization. Students in both districts would benefit from combined curriculums. High school subjects will have more students and greater academic competition. High School Students will have a larger selection of Dual Credit Classes. High School students will have more sections of classes. Thus, reducing scheduling conflicts. High School students will have additional class offerings.
25 Curriculum Continued: Junior High students would have additional class offerings. Elementary Students would have additional class offerings. Reduction in number of class preparations for some staff. (i.e. High School and Junior High) Potentially increase number of staff members teaching in their Major of Study. PreK-High School staff would be able to collaborate with more similar staff members.
26 Athletics & Activities Kewanee has their own sports. Kewanee is a member of the Three Rivers Conference. Wethersfield is a member of the Lincoln Trail Conference. Wethersfield Co-op s Baseball, Cross Country, Football, Golf, Softball, and Boys/Girls Track with Annawan High School.
27 Athletics & Activities Benefits Kewanee students would be able to compete on the Bass Fishing Team currently available at WHS. Wethersfield students would be able to compete in Bowling (Girls), Competitive Dance, Soccer, Tennis (Girls) & Wrestling. Boys/Girls Swimming (currently Independent) would also be available to compete in Relays together.
28 Athletics & Activities Benefits Continued: Wethersfield students would be able to participate in an additional Play (each year), FCCLA, Robotics, Contest Play, and Group Interpretation. This list is not all inclusive. The Committee of Ten will further investigate all additional activities/athletics provided at each school in further detail.
29 Transportation Combined fleet in good condition. No additional buses needed. Bus routes might be combined. Some special education savings.
30 Districts by area in sq. miles District Name County Type Area in Sq. Miles 1. Hall No. 205 Bureau High School Alwood No. 225 Henry Unit Bradford No. 1 Stark Unit Orion No. 223 Henry Unit Annawan No. 226 Henry Unit Kewanee/Wethersfield Henry Unit Princeton No. 115 Bureau Elementary Princeton No. 500 Bureau High School Stark County No. 1 Stark Unit Geneseo No. 228 Henry Unit Bureau Valley No. 340 Bureau Unit
31 Kewanee EAV $72,762, Tax Rate $ Fund Balances $14,772, Revenue $18,113, Expenditures $17,898, Finances Wethersfield EAV $51,566, Tax Rate $ Fund Balances $4,776, Revenue $5,578, Expenditures $5,895,709.00
32 Both districts have money in reserve. Many of these funds are restricted for specific types of expenditures. The Kewanee District revenues exceeded expenditures while the Wethersfield District used some of their surplus during the year. The Kewanee District receives more money from the state (63%) than from Local taxes (27%). The Wethersfield District receives more money from taxes (48%) than from the State 44%. Both districts are similar for expenditures (77%) with the Education Fund. Building and Transportation Funds have the next larger expenditures. Because of proration, both districts did not receive all of the General State Aid they were supposed to have received. During the past four years, the Kewanee District has lost over $4 million and the Wethersfield District lost over $890 thousand in General State Aid. Citizens from each district are responsible for Bond Indebtedness prior to the reorganization. Thus two different tax rates. Cost of the tax for the homeowner is determined by the rate times the house value (1/3). A Homeowner $6,000 exemption is included in the example. A Kewanee resident ($40, home) will pay $49.00 more at the $5.03 rate versus $4.60 rate. It will cost a Wethersfield resident $85.00 more at $5.10 versus $4.35. State Incentives would be approximately $2,571, in incentive money over 4 years. Final amount will be calculated by ISBE in the year of the reorganization could be more or less. Actual new money is $4, per staff.
33 2014 Beginning Balances Kewanee $14,772, Some money is restricted Bond & Interest IMRF/SS F/S Tort Actual Balance $10,101, Wethersfield $4,776, Some money is restricted Bond & Interest IMRF/SS F/S Tort Actual Balance $3,120,299.00
34 Kewanee Revenue
35 Wethersfield Revenue
36 Kewanee Expenditures
37 Wethersfield Expenditures
38 Kewanee GSA Year % Entitlement GSA Loss ADA $10,158, $8,854, $1,303, , $10,274, $9,114, $1,160, , $10,002, $8,914, $1,087, , $9,713, $9,230, $482, , General State Aid is calculated using the latest 3 year average of daily Attendance. The number of students attending school is important.
39 Wethersfield GSA Year % Entitlement GSA Loss ADA $2,274, $1,984, $289, $2,323, $2,063, $260, $2,243, $2,000, $243, $1,987, $1,888, $98, General State Aid is calculated using the latest 3 year average of daily Attendance. The number of students attending school is important
40 Kewanee Transportation 2014 YEAR Expenditures Claim Reimbursement Expenditures Claim Reimbursement Expenditures Claim Reimbursement Regular $579, $418, $362, Vocational $NA $NA $NA Special Education $139, $111, $94,246.00
41 Wethersfield Transportation 2014 YEAR Expenditures Claim Reimbursement Expenditures Claim Reimbursement Expenditures Claim Reimbursement Regular $116, $83, $49, Vocational 14, , , Special Education $68, $54, $53,125.00
42 Tax Rate Example Combined Education Building Bonds Transportation IMRF Social Security Working Cash Liability (TORT) Fire/Safety Lease Special Education Total $ 2.20 K W $ 4.79 $5.03 $5.10
43 How Much Will It Cost? House Value Kewanee Wethersfield K Difference W $40, $ $ $ $ $70, $1, $ 1, $ $ $100, $1, $1, $ $ $150, $2, $2, $ $ New $4.79 Tax Rate $5.03 $5.10 $4.60 $4.35 Bonds Note: The above example is using a $6, Homeowners exemption and does not take into consideration any exemptions for Senior Citizens, Home Improvements, Disabled Veterans, etc. The Difference Column shows the increase in tax dollars between the old tax rate and the new proposed rate. K is for Kewanee owners and W is for Wethersfield owners.
44 Financial Incentives State Aid Difference Deficit Offset Teacher Salary Difference Certified Employee Pay of $4, Note: The state has always paid the incentive money and the 2016 Budget has incentive appropriations.
45 State Aid Difference If the General State Aid (GSA) is less for the newly reorganized district in the first year than the General State Aid would have been that same year of the previously existing districts, ISBE will make supplementary state aid payments equal to the difference for the first four years to the reorganized district.
46 Deficit Offset Deficits are calculated by totaling the fund balances in the education, operation & maintenance, transportation and working cash funds in each district. ISBE will make one supplemental state aid payment equal to the difference between the largest and smallest deficit. A positive fund balance is considered to have a deficit of zero.
47 Teacher Salary Difference If there is a difference between the sum of the salaries earned during the previous year by teachers of the new district and the sum of salaries those teachers would have been paid if placed on the highest salary schedule, ISBE will make supplementary state aid payments equal to the difference for the first four years to the newly reorganized district.
48 Certified Employee Pay of $4000 For up to three years, a reorganized district may receive a supplementary state aid payment equal to $4, for each certified employee who is employed on a full time basis for the school year. The number of payments depends upon the new districts rank in EAV/Pupil and ADA. The new district would be eligible for 2 years.
49 State Incentives Incentive Year 1 Year 2 Year 3 Year 4 Total State Aid $206, $206, $206, $206, $825, Deficit Offset Teacher Salary $94, $94, $94, $94, $378, Certified Staff 0.00 $684, $684, $1,368, Total $303, $971, $971, $303, $2,571,772.00
50 Demographics New District Area of District EAV Staff Teachers Administrators Support Total Enrollment Tax Rate Tax Revenue GSA Incentives (4 yr. average) sq. miles $122,918, ,499 $4.79 $5,887, $12,206, $643, Could reduce staff
51 This study did not contain any staff reductions. Can Kewanee High School house the 200 high school students from Wethersfield? If not, what would be the costs to accommodate 700+ students? The junior high could be grades 7, 8, & 9. (Similar to Quincy Illinois School District.) Kewanee District has 239 students with special needs and Wethersfield has 72 students. Kewanee has 24 Sp. Ed. Teachers and Wethersfield has 6. There are 8 HS Sp. Ed. classes in Kewanee and 2 in Wethersfield.(Henry-Stark Co. Special Ed 2015 Report). The committee will have to determine if the attendance centers can house all of the students. The slides show ideas or suggestions. It will take place 2 years from now, 2017 school year. Citizens could decide to have one district and 2 high schools (Peoria, Rockford & Springfield Districts). KHS & WHS Sports could still be a Coop. Could create a Magnet School Concept. The state does not have enough money to pay the schools 100% of the money owed to them. The 2016 Budget shows about a 95% proration of General State Aid.
52 Conclusion How could the new district s buildings be utilized? Neponset PreK students could attend Lyle PreK Center or Wethersfield if Neponset Grade School could not maintain enrollment. School could become a PreK 6 building. Grades 7 & 8 would attend the new Junior High. Wethersfield Would house grades PreK 8. Blish building could house the Alternative School Program. Grades 9 12 would attend Kewanee High School. Kewanee Grades 7 & 8 would attend Wethersfield Jr. High. Kewanee HS would house Continue attendance centers.
53 1. How could the new district s buildings be utilized? Option 1 Neponset PreK 6 Grades 7 & 8 attend new JH Kewanee HS Grades 9-12 Grades 7 & 8 attend Wethersfield Jr. H. Maintain attendance centers Wethersfield PreK 8 All 7 & 8 grades Grades 9-12 attend Kewanee HS Blish becomes Alternative School *
54 2. Building Use. Option 2 Elementary and Junior High will be the same. Have 2 High Schools in the consolidated district. Blish might be needed for 9 th grade if included in Jr. High. Alternative Program would be at Central.
55 What are the advantages of two high schools? 1. Coordinate the curriculum. 2. One school board and superintendent. 3. Potential savings on materials & supplies. 4. Maintain school identity. 5. Create Magnet School. Special Curriculum STEM (Science, Technology, Engineering & Math), the Arts, Vocational or Career Paths.
56 final thoughts Some facts to consider
57 Revised proration's for GSA & mandated categorical: Program Revised Proration Original Proration Variance GSA 87% 89% 2% Sp. Ed. Personnel 98% 100% 2% Sp. Ed. Private 94% 97% 3% Sp. Ed. Services 98% 100% 2% Sp. Ed. Trans. 95% 97% 2% Regular/Voc. Trans. 71% 72% 1% Note: In most cases, school districts will lose additional money because of the revised proration. The following slides show the difference.
58 Kewanee Program Revised Proration Original Proration Difference GSA $8,854, $9,050, $195, Sp. Ed. Personnel $ 70, $ 71, $ 1, Sp. Ed. Private $ 83, $ 85, $ 1, Sp. Ed. Fund Serv. $ 253, $ 258, $ 5, Sp. Ed. Trans. $ 91, $ 94, $ 2, Regular/Voc Trans. $ 344, $ 350, $ 6, Bilingual Ed. $ 31, $ 32, $ Early Childhood $ 344, $ 350, $ 6, Total $219,707.00
59 Wethersfield Program Revised Proration Original Proration Variance GSA $1,965, $2,009, $ 43, Sp. Ed. Personnel $ 24, $ 24, $ Sp. Ed. Private $ NA $ NA $ NA Sp. Ed. Fund Serv. $ 78, $ 80, $ 1, Sp. Ed. Trans. $ 51, $ 53, $ 1, Regular/Voc Trans. $ 56, $ 57, $ 1, Bilingual Ed. $ NA $ NA $ NA Early Childhood $ 108, $ 110, $ 2, Total $ 50,148.00
60 Illinois budget is not fiscally sustainable. Despite recent progress and difficult choices, it is still in a deep hole. It cannot simultaneously continue current services, keep taxes at current levels, provide all promised benefits, and make needed investments in education and infrastructure. All of the major threats identified by the Task Force in its July 2012 report have contributed to Illinois current problems and will contribute to future budget-balancing struggles. State Budget Crisis Task Force, October Illinois has the worst unfunded pension liability of any state, an estimated $85 billion. 2. Medicaid enrollment and expenditures in Illinois doubled between 2000 and Over 60 percent of Illinois total outstanding debt is due to pension bonds. 4. Illinois has compounded its challenges with poor fiscal management and opaque budgeting. 5. Narrow, eroding tax bases have contributed to Illinois fiscal difficulties. 6. Illinois aging and deteriorating infrastructure is in urgent need of immediate repairs. 7. Federal aid matches about 50 percent of Illinois Medicaid spending, and constitutes about 35 percent of the budget of the Department of Human Services, 30 percent of transportation, 20 percent of K-12 education, and 20 percent of spending for environment and natural resources. 8. Illinois needs to make tough choices now
61 1. Illinois has the third highest number of school districts of all U.S. states. More than 200 of Illinois 868 school districts have only one school. 2. Former Governor Quinn proposed consolidating the number of school districts to 300 and formed a commission to study the issue, estimating that Illinois could save $100 million per year. However, implementation of the plan (and potential savings) are at least a year away. 3. Illinois does face a financial hurdle in school district consolidation. The commission studying consolidation estimated there would be a $3.7 billion cost, due in part to financial incentives the state currently provides. 4. In April 2012 the commission recommended that school district consolidation be voluntary; many districts are proposing ways to save money that would keep them from having to consolidate. 5. New Governor in New State Superintendent in 2015 from California
62 State of IL School Districts
63 The State of Illinois has 102 counties and a population of 12.8 million people. The population in 16 counties is approximately 10.3 million, therefore the remaining 86 counties have 2.5 million people. This means that 80% of the population live in the 16 counties of which Henry County is not one. There are 426 school districts in the 16 counties. There are 434 school districts in the 86 counties. There are 860 school districts in the State of Illinois. There are 12 county school districts in the 86 counties. Therefore, 420 school districts are in 74 counties. The City of Kewanee has 2 of the 420 school districts in the 74 counties. If the state mandated consolidation, how difficult would it be to put Kewanee and Wethersfield Districts together? This is the question the study sought to answer.
64 Henry County
65 Purpose of This Study Because the final action is two years away (Referendum -November Board Election April 2017), the purpose of this study was to give the Committee of Ten a template to use to gather current data to see the final picture of the new district. This current information will be presented at the ROE hearing.
66 Questions
67 Questions That Were Asked 1. The suggested tax rate was $4.79 plus Bond and Interest. Do school districts have to levy the total tax rate? The answer is NO. This will be the maximum rate the district can levy. The board would probably levy on what would be needed. The tax rate could be less. 2. After consolidation, how long do residence have to pay off the bonds? The original date of the bond does not change, so tax payers aren t rushed to pay off the bonds. Both districts have a 1% sales tax that should reduce the amount citizens will have to pay. Some companies allow bonds to be paid off early. The bond indebtedness of both districts could be combined. However, school boards are hesitant to do this because of the differences in the length and interest rates of the bonds. If these are similar, the indebtedness could be combined and the tax rates would be the same for both districts.
68 Thank You I would like to thank the Committee of Ten for choosing me to do the study. Also, I would like to thank the Kewanee School Board for their hospitality in hosting the community meeting. These facilities are excellent. The study would not have been possible without the cooperation of the two district superintendents Dr. Chris Sullens and Mr. Shane Kazbowski. They provided the much needed information and were very helpful during my visit to their districts.
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