Willoughby-Eastlake City Schools 3707 Ridge Road Willoughby, Ohio. Financial Recovery Plan 1/25/12



Similar documents
Tipp City Exempted Village Schools. Miami County

CHAPTER 209 HOUSE BILL 2395 AN ACT

HOW TO READ A FIVE-YEAR FORECAST. Tips and Explanations on Understanding a School District s Forecast

WICKLIFFE BOARD OF EDUCATION 5-Year Financial Plan (SM-7) Assumptions: Fiscal Year 15 January 12, 2015

ATTACHMENT D CHARTER SCHOOLS IN MICHIGAN

The districts are divided into the following four groups, based on student net enrollment per square mile:

(1) Bases the computations for steps 1, 2 and 5 on net enrollment only, eliminating the adjusted enrollment limits;

LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 301 State House (317)

Planning for Our Future 10 YEAR FINANCIAL PLAN REVIEW

STATE OF WEST VIRGINIA EXECUTIVE SUMMARY OF THE PUBLIC SCHOOL SUPPORT PROGRAM BASED ON THE FINAL COMPUTATIONS FOR THE YEAR

Wayne Local Schools Business Plan Notes ( ) SUBMITTED MAY OF 2012

NEW PHILADELPHIA CITY SCHOOLS FIVE-YEAR FORECAST

TENNESSEE BASIC EDUCATION PROGRAM 2.0

1320 DUTIES OF SCHOOL BUSINESS ADMINISTRATOR/ BOARD SECRETARY. 1. A valid certificate as a School Business Administrator.

Arkansas Department of Education Rules Governing Procedures For Best Financial Management Practices Review For Public School Districts June 2004

STATE OF WEST VIRGINIA PUBLIC SCHOOL SUPPORT PROGRAM EXECUTIVE SUMMARY For the Year

EASTLAND FAIRFIELD CAREER & TECHNICAL SCHOOLS FRANKLIN COUNTY SINGLE AUDIT

The Responsibility of the Board of Education in Managing School District Fiscal Fitness New York State School Boards Association, Latham NY

UNION COUNTY BOARD OF EDUCATION SALARY SCHEDULE ADMINISTRATION SCHOOL YEAR

City of Mt. Angel. Comprehensive Financial Management Policies

FLORIDA HIGH SCHOOL FOR ACCELERATED LEARNING - WEST PALM BEACH CAMPUS, INC. d/b/a QUANTUM HIGH SCHOOL

OHIO SCHOOL FACILITIES COMMISSION FINANCIAL HARDSHIP LOAN PROGRAM GUIDELINES December 2003

STATE OF MICHIGAN. Bond Qualification Process Overview. School Bond Qualification and Loan Program Bureau of Bond Finance

CHAPTER II GENERAL LEDGER ACCOUNTS

Understanding Alabama Schools Accounting System. A Guide to State Allocation Calculations /4/2014. Funding Components.

Components 127th General Assembly 128th General Assembly

FORT HAYS STATE UNIVERSITY

SCHOOL FINANCE 101. Presented by Brenda Burkett, CPA, SFO Chief Financial Officer Norman Public Schools. February 2015

Understanding the Budget Process

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2015 HOUSE BILL 1080 RATIFIED BILL AN ACT TO ESTABLISH THE ACHIEVEMENT SCHOOL DISTRICT.

POUGHKEEPSIE CITY SCHOOL DISTRICT REQUEST FOR PROPOSALS FOR SCHOOL PHYSICIAN AND NURSE PRACTITIONER SERVICES

SCHOOL FINANCE IN COLORADO

To the Residents, Board, and Administration of the Madison Local School District:

The state budget and Ohio s schools Big cuts, hard choices, local impacts Wendy Patton, Piet van Lier and Elizabeth Ginther

Budget Edition May 2015 roposed Budget 7 am to 9 pm District Office Budget Change Tax Levy Increase Vote Day Details A Look Inside

Resolution to accept the minutes as submitted by the Treasurer or as amended or corrected and the following reports:

DEFINITIONS OF IOWA SCHOOL FINANCE TERMS

Arkansas Department of Education Rules Governing The Arkansas Financial Accounting and Reporting System, and Annual Training Requirements August 2005

AD VALOREM TAX ADOPTED BUDGET

ENROLLED SENATE BILL No. 619

BOARD OF EDUCATION OF THE TOWNSHP OF EASTAMPTON SCHOOL DISTRICT COUNTY OF BURLINGTON

SCHOOL FINANCE IN COLORADO

and residents sixty years of age or older who are surviving spouses

WYOMING CITY SCHOOL DISTRICT. Hamilton County, Ohio. Annual Financial Information Statement

Brentwood Fire District

PRESCRIBED CODING SYSTEM

This page intentionally left blank.

Education Revenue, Expenditures, And Staffing Over 10 Years

RULE 2 EFFECTIVE DATE JULY 7, 2013 (REVISED) NEBRASKA DEPARTMENT OF EDUCATION UNIFORM SYSTEM OF ACCOUNTING FOR NEBRASKA PUBLIC SCHOOL DISTRICTS

NEW PHILADELPHIA CITY SCHOOLS FIVE-YEAR FORECAST

Bailey, Hodshire & Company, P.C.

FLORIDA INTERNATIONAL ELEMENTARY ACADEMY

Detailed information about Ohio s school income tax can be found here:

Principals report Irene E. Feldkirchner Elementary School

STATE OF TENNESSEE Department of Education

Informational Issue: School Finance Funding Case Studies

Understanding Montana School Finance and School District Budgets

OTHER COMPREHENSIVE BASIS OF ACCOUNTING (OCBOA) CASH BASIS NOTES TO THE FINANCIAL STATEMENTS

School District - Understanding the Capital Project and General Fund Types

Be it enacted by the People of the State of Illinois,

2015 Legislative Positions Adopted by the Delegate Assembly In Savannah, Georgia, on June 13, 2014

CREDIT UNION DEPOSIT GUARANTEE CORPORATION

How To Audit A State Budget

Chapter Four: Enrollment & Finance Trends & Projections

Adoption Of Resolution Calling Parcel Tax Election

2000 Board of Education Superintendent Responsibility Superintendent Job Description Elementary Principal Job Description

How To Issue A Bond In A School District

BEPOBT. CITY COUNCIl. Item 27 ACTION - BACKGROUND ANALYSIS & ASSESSMENT. Meeting Date: August 25, Development of the Audit Plan

Holladay Budget Amendments for

Trinity Christian School Association Name of Private School and Legal Name of Organization Operating the Private School.

AN ACT...; relating to: the budget.

BERGEN Advertised Enrollments WOODCLIFF LAKE BORO

School Finance 101. MASA / MASE Spring Conference Joel Sutter Ehlers Greg Crowe - Ehlers

FREQUENTLY ASKED QUESTIONS (FAQs): MINNESOTA S STAFF DEVELOPMENT STATUTES Minnesota Statutes, sections 122A.60 and 122A.61

Town Meeting Warrant And Secret Ballot Election

STATE OF ARIZONA HOUSE OF REPRESENTATIVES

166 tax.ohio.gov. Property Tax Tangible Personal Property. Taxpayer Taxpayers who own and use tangible personal property in business in Ohio.

STATE PENNY FOR SCHOOL INFRASTRUCTURE AND PROPERTY TAX RELIEF: REVENUE PURPOSE STATEMENTS CARDINAL COMMUNITY SCHOOL DISTRICT

Average Daily Membership Audit Report Primavera Technical Learning Center Arizona Online Instruction Program Fiscal Years 2012, 2013 and 2014

ADAIR COUNTY BOARD OF EDUCATION CLASSIFIED SALARY SCHEDULE

Report on Board and System Administration Expenses. March 4, 2015

GENERAL FUND AND PUBLIC SAFETY FUND PROJECTION

Long Range Financial Forecasting for School

SCHOOL FINANCE IN COLORADO

CHAPTER 20 COUNTY PERMISSIVE MOTOR VEHICLE LICENSE TAX

SHARED REVENUE AND TAX RELIEF

Community School Transportation Funding

The NEVADA PLAN For School Finance An Overview

ARKANSAS DEPARTMENT OF EDUCATION RULES GOVERNING CONSOLIDATION AND ANNEXATION OF SCHOOL DISTRICTS September 2014

Decreasing enrollment trend. Decrease in State, Local, and Federal funding. Increasing operation costs. Sustaining the Construction/Lottery Fund.

PART 425 VOLUNTARY REGISTRATION AND RECOGNITION OF NONPUBLIC SCHOOLS

DIVISION OF ACCOUNTS AND REPORTS POLICY AND PROCEDURE MANUAL Revision Date 04/03/00 Filing Number 4,271 Date Issued 04/76 Page 1 of 5 Revisions #

INTRODUCTION v Chapter 6A-1.085, Basic Principles of Internal Fund Accounting.

Understanding Alabama School Accounting System. Coding 3/5/2014. The Purpose of Today s Presentation. Topics To Be Discussed

Henrico County Public Schools. Annual Financial Plan Investing in Excellence

Debt Comparison by Unit Type

6. A written record of all observations, conferences, and summary evaluations.

To the residents, administrators and elected officials of the Auburn Career Center:

Essential Programs & Services State Calculation for Funding Public Education (ED279):

Procurement practices of school districts and charter schools; definitions

Transcription:

1 Willoughby-Eastlake City Schools Willoughby-Eastlake City Schools 3707 Ridge Road Willoughby, Ohio 1/25/12

2 Willoughby-Eastlake City Schools CONTENTS Executive Summary Current Five-Year Forecast Objectives of the Financial Plan 1 4 5 The Budget Process Appropriations 6 Format for Appropriations Financial Reports Assurances of the Financial Plan 6 7 8 12

3 Willoughby-Eastlake City Schools Executive Summary The Willoughby-Eastlake City Schools sets the standard for public learning, and has been an Excellent rated school district since the inception of Ohio s State Report Card. The district serves nearly than 9,000 young people in grades K-12 in a 36 square mile section of Western Lake County, Ohio. Since 1985, Grant, Jefferson, Longfellow, McKinley and Royalview Schools have been inducted into Ohio's Elementary School Hall of Fame; South High School and Royalview Elementary Schools have been selected as Blue Ribbon Schools of Excellence by the United States Department of Education; and both North and South High Schools have won the Ohio Academic Decathlon. The district offers a full complement of extra-curricular activities for boys and girls, as well as latchkey programs in all elementary schools. District Overview: District State Average Graduation Rate 97.4% 79.0% Per Pupil Spending $9,597 $10,660 Student Per Administrator 317 175.3 Students Per Teacher 16.7 16.1 Number of Schools 13 - Number of Students 8,855 - Number of (FTE) Teachers 531 - The district has enjoyed levy support from the taxpayers for the past 25 years, and has not failed a levy in that time until the November 8, 2011. The district was already in fiscal distress due to a nearly five million dollar reduction in state funding. The district lost 9% of its state foundation funding, 21% of its state reimbursements, and 3% on local property tax collections. Now the district stands on the precipice of Fiscal Emergency. Historically the district has run very lean in terms of personnel (see Appendix A Ohio Department of Education Staffing Analysis). The district has been reducing staffing levels for the

4 Willoughby-Eastlake City Schools past five years. In addition to reducing staffing levels in nearly every employee category, the district has taken the following steps in order to further control costs: Zero percent salary increases in 2010/11 Joined with other government entities to purchase gas, electricity, diesel fuel, supplies, and trash removal services Transportation and education of ALL of our students Conservation of energy program Arranged for gas wells to be drilled on school property to reduce expenditures for natural gas Rented out unoccupied school buildings Eliminated administrative positions Budget Gap FY2012-2016 While these projected deficits are indeed daunting, they are by no means insurmountable. See Five-Year Forecast below: Fiscal Year 2004 2005 2006 2007 2008 2Surplus (Deficit) (34,363) (71,929) (78,413) (89,944) Despite significant reductions in state funding, the district cannot only regain budgetary stability, but also improve academic achievement through long-term financial stability. After the failure of

5 Willoughby-Eastlake City Schools our November 8, 2011 levy failure, the district successfully reached agreements with all five public employee unions saving local taxpayers 15 million dollars the next five years. Insurance contributions increased from 2.5% to 15% Insurance plan design changes to include deductibles, co-pays and increases in drug costs Spousal language changes removal of spouses from the W-E insurance plan to their own insurance providers when available 0% pay increases for the next two years for all five unions Step freeze in 2012-2013 Two unpaid furlough days for all certified staff members Increase in teacher contact minutes with students in grades 6-12 from 225 to 270 minutes per day. As a result, we are able to reduce our teacher work force by 50 teachers. Reduction in force of 19 support personnel Reduction in force of 7 administrators and supervisors Our unions ratified the above contract provisions with overwhelming support. Due to O.R.C. requirements, levy passage in March, 2012 is necessary in order to certify the contracts. Without the additional funds generated by the levy, the agreements with the union are no longer in effect. Objectives of the Financial Plan In accordance with Section 118.06, Ohio Revised Code, the Superintendent must submit to the Financial Planning and Supervision Commission ( Commission ) a Financial Recovery Plan as approved by a resolution of the Willoughby-Eastlake Board of Education within 120 days after the first meeting of the Commission. The main objective of the Financial Recovery Plan is to eliminate all fiscal emergency conditions which were determined by the Auditor of State pursuant to Sections 118.04. Ohio Revised Code. The Plan identifies the actions to be taken by the District to restore the fiscal integrity of the Willoughby-Eastlake City Schools. It also serves as a master plan by which all future appropriation measures must comply and directs the correction of issues essential to financial recovery. The may be amended in the same manner as its initial passage. The matters that need to be addressed by the

6 Willoughby-Eastlake City Schools District s in order to eliminate its fiscal emergency conditions are set forth below in the remainder of this document. The Budget Process Appropriations By virtue of Ohio law, the District is required to balance its annual operating budget. Accordingly, the District s administration is committed to address each of the projected deficits through a series of demanding actions designed to increase operating revenues and/or decrease operating expenditures/expenses. The annual appropriations process shall be accomplished for the general fund and any deficit funds through the District s rolling five-year forecast attached hereto and incorporated herein as Appendix B and will match the District s Budget. On or before June 30th of each year the School Board shall adopt budget appropriations for the upcoming year that begins July 1st. Failure to do so is in violation of the financial plan and the District shall be subject to remedies and penalties as prescribed in Chapter 118 of the Ohio Revised Code. In order to accomplish this, the following procedures shall be followed while the District remains in fiscal emergency: Format for Appropriations All fund appropriations will be reviewed by the Administrative Cabinet on or before April 30 th of each year. The District shall follow the budget process as follows: On or before April 1 st of each year all department heads and building principals shall submit their departmental/building budgets to the Superintendent. The departmental/building budgets shall provide a detailed narrative explaining the need for the monies requested. If any department/building budget includes appropriations from grant dollars specific to their department, the grant requirements, dollar amount, and grant period shall be included with the documentation.

7 Willoughby-Eastlake City Schools On or before May 15th the Administrative Council shall complete its budget review. The District Treasurer shall forward to each member of the Commission the proposed appropriations resulting from the Administrative Cabinet. After the Commission s review of the proposed appropriations and no later than June 15th, the Board of Education shall adopt the appropriations for the upcoming fiscal year that is consistent with all modifications set forth by the Commission. Failure to do so is in violation of the and the District shall be subject to remedies and penalties as prescribed in Chapter 118 of the Ohio Revised Code. Financial Reports A copy of the Appropriations and the Five-Year Forecast shall be sent to the Superintendent. The District Treasurer will summarize the information and present the summary to each member of the Commission at the Commission meeting.

8 Willoughby-Eastlake City Schools The following plan which is based on the actions that are to be taken by the District, legal authority and the approximate dates to be enacted as indicated: BUILDING/ DEPARTMENT EXPENDITURE REDUCTION ACTION EST. SAVINGS ENACTED DATE PERSON ASSIGNED Request a Staffing Analysis Received 10/1/11 Superintendent Building Administrators Central Office Administration Consult district administrative staff 11/10/11 Superintendent Consult legal counsel 11/11/11 Asst. Superintendent Request State Auditor s Office to conduct a Performance Audit 11/11/11 Treasurer Consult staff members Week of 11/14/11 Superintendent Union Leadership Terms and conditions of the Financial Recovery Plan (FRP) $25,489,000 Over 2 years Effective 4/1/12 Superintendent Board of Education Seek Board approval of FRP $12,744,500 per year 1/18/12 Superintendent All Staff Hold staff meetings at North and South High Schools detailing FRP 1/18/12 Superintendent All Staff Form Levy Committee Seeking 4.9 mills 12/1/11 Superintendent All Staff Launch Levy Campaign Seeking 4.9 mills 1/3/12 Superintendent / Levy Chairs All Buildings & Departments Issue Reduction in Force (RIF) notices 7/1/12 Asst. Superintendent

9 Willoughby-Eastlake City Schools All Staff Pass Emergency Operating Levy Seeking 4.9 mills 3/6/12 Community All Buildings / Departments Potential recall of RIF employees should the levy pass and budget permit 5/1/12 Superintendent / Treasurer Reduction in Force (RIF) The following plan which is based on the actions that are to be taken by the District, legal authority and the approximate dates to be enacted as indicated (see appendix A, the Ohio Department of Education Staffing Analysis): BUILDING/ DEPARTMENT EXPENDITURE REDUCTION ACTION EST. SAVINGS ENACTED DATE PERSON ASSIGNED Administration/ Supervisors RIF (7) Administrators $600,000 8/1/12 Superintendent Food Service RIF (7) self-sustaining increase lunch prices by.25 cents $140,000 8/1/12 Superintendent Transportation Outsource transportation $1,200,000 8/1/12 Director of Pupil Services McKinley Elementary Close the building and place students in the new addition at Grant Elementary $350,000 (other savings reflected above) 6/10/12 Superintendent Kennedy Elementary Renovate facility with existing P.I. funds and return 55 special needs students currently being educated outside the district $600,000 8/25/12 Superintendent / Pupil Services Director North H.S. RIF (12.5) teachers & (1.5) secretary $959,500 8/1/12 Superintendent South H.S. RIF (12.5) teachers & (1) secretary $991,000 8/1/12 Superintendent Middle Schools RIF (17) teachers & (2) secretaries $1,204,000 8/1/12 Superintendent Elementary Schools RIF (14) teachers & (3) clerical assistants $1,018,000 8/1/12 Superintendent

10 Willoughby-Eastlake City Schools Plant Operations RIF (5) Custodians $280,000 8/1/12 Superintendent Contractual Changes Increase in employee contributions to 15% Plan design changes Step Freeze Unpaid furlough days $3,820,000 6/1 /12 Superintendent Transportation of SPED Stop using van services $550,000 1/1/12 Director of Special Education Centralize Warehouse Purchases 18.5% reduction of purchase of all supplies through EASi $1,047,000 3/1/12 Superintendent H.B. 264 Energy conservation project $455,000 3/1/12 Superintendent Athletics Increase Pay-to-Participate $120,000 8/31/12 Superintendent FRP Total Reductions = $12,744,500 Total RIF ADMINISTRATORS/ SUPERVISORS TEACHERS SEC./CLERICAL CUSTODIANS FOOD SERVICE (7) FTE (50) FTE (7.5) FTE (5) FTE (7) FTE

11 Willoughby-Eastlake City Schools Impacts of FRP on 5-Year Forecast (LEVY PASSAGE, RIF, COST SAVINGS MEASURES IN PLACE) 4.8 6.0 2.2 2.2-6.6 Ramifications of a Failed Levy in March, 2012 The following ramifications of failed levy are not an all-inclusive list. The administration and Board of Education may add or delete items: Increased class sizes Reduction in course offerings and programs Additional staffing reductions Reduction in busing to state minimums (two mile radius and no high school busing) Increase in Pay-to-Participate: o High School Sports - $600.00 per sport / Football - $725.00 o Middle School Sports - $500.00 per sport / Football - $625.00 No field trips Elimination of daily flexible busing Restructuring of the Zenith program Elimination of All-Day Kindergarten programming Additional staffing reductions

12 Willoughby-Eastlake City Schools Assurances of the Financial Plan 1. The District will conform to statutes with respect to tax budgets and appropriation measures. 2. The District will establish monthly levels of expenditures and encumbrances pursuant to division (B)(2) of Section 118-07 of the Ohio Revised Code. 3. The amount and purpose of any issue of debt obligations will not exceed debt limits supported by the appropriate certification by the County Auditor. 4. The District will prepare a financial forecast for a five-year period in accordance with the standards issued by the Auditor of State. Based on the implementation of the items in this plan, the District could request termination in March, 2012, Respectfully submitted, Stephen L. Thompson Superintendent Approved: By the Willoughby-Eastlake City School Board on: January 18, 2012