Due to rising costs of tuition payments, health care, and fuel; no increases in basic state aid for the last 3 years; a 20% reduction in federal funds for next year; and the failure of the March levy, we have had to make some very difficult financial choices.  We began the 2007-2008 school year, having closed a building, reconfiguring the 4 remaining buildings by grade level to reduce teachers, and reducing the 2007-2008 budget by $2.1 million dollars.  These actions allowed us to postpone a levy until this calendar year.  However, due to the March 2008 levy failing, I find myself making another set of recommendations to this Board of Education, this time to adjust the 2008-2009 budget. 

As you know, we solicited feedback from community and staff members through the April 2 community budget meeting.   We also posted the budget presentation on our district web site and solicited further comments electronically from our residents.  They overwhelmingly supported retaining our gifted and music programs, advanced courses, and high-quality teachers, but these programs and staff cost money. 

They also suggested charging higher fees for extracurricular activities, reducing athletic programs, eliminating high school busing, and reducing administrative support for our teachers. 

This evening I would like to present to the Board my recommendations and rationale for adjusting the 2008-2009 district budget.  The staff and I weighed survey input heavily, given our belief that any recommendations that I make should reflect community and staff values.  We have taken into account the need for our district to meet our legal and contractual obligations.  Above all, I am recommending what we think does the least academic harm to our students, while maintaining the safe, efficient operation of our schools.     

The fact that we must make further reductions on the heel of reconfiguration is distressing, because we have raised the academic bar significantly in the last few years.  We have offered more advanced courses, such as Biotechnology, advanced placement courses, gifted programs, accelerated math and science, Chinese, and technology.  These courses have replaced other, less rigorous offerings and in some cases, we have received additional support to partially fund them.  Through complex scheduling, we have managed to offer daily Chorus, Orchestra, Band, and GTA at the intermediate level at no extra cost.  We have developed a model alternative education program and credit recovery opportunities at the high school that have increased the graduation rate for our students from 78% to 94%.  We have improved our academic rating from academic watch to effective, and met the federal rating of Adequate Yearly Progress for all groups of students. 

While it pains me to do anything that could disrupt this excellent academic progress, I am compelled to balance the 2008-2009 budget.  My recommendations are as follows:

1. Reduce a total of 21 positions.  These people represent 4.3% of the total administrative/exempt staff, 4.3% of the teacher staff, and 3.4% of the support staff.  These recommendations are:

• Eliminate 2 administrative/exempt positions, the Communications Director and the Compliance Officer, by having current administrators do double duty in those areas.    At this time, I am not recommending that we reduce administrators or exempt staff at any of our buildings for reasons of safety, instructional accountability, and operational efficiency. 

• However, I am recommending that the Board rescind the 2% salary increases that it previously approved for all administrators and exempt personnel for the 2008-2009 fiscal year. 

• Eliminate 3 teachers, one each from Primary South, Elementary, and Intermediate schools, due to projected enrollment at specific grade levels, including special needs students.   

• Eliminate 5 teachers from the Middle School, including art, social studies, science, reading, and Project Phoenix.  These cuts are due to projected enrollment and a change in eligibility criteria for Reading and Spanish classes in grade 7.  The latter change is a result of our requiring more students to take Spanish and technology in middle school, due to the increased rigor of our intermediate school curriculum.           

• Do not replace 3 teachers at the High School: 1 music teacher, 1 Career-Based Intervention teacher, and 1 Intervention Specialist.  Students will have less one-on-one time with teachers due to larger classes.          

• Eliminate 1 teacher from the alternative education program by serving fewer students.  This could adversely affect our graduation rate and AYP designation. 

• Eliminate 7 support staff, including a Middle School secretary vacancy; a District maintenance vacancy; two office assistants from the Community Building - one serving the enrollment center and one serving the main office; a High School custodian position; an account clerk in the Treasurer’s Office; and a High School attendance office assistant.  These reductions will mean that remaining staff will take on additional responsibilities. 
•  Increase all student fees, including those for school supplies, course materials, and athletics/extracurricular activities.  Our administrators will continue to follow the Board’s policy that students must pay all student fees before they can participate in any extracurricular activity. 

In particular, I am recommending that athletic and extracurricular fees, at the very least, be doubled.  This increase is needed to offset the increase in diesel fuel costs to transport students to competitions.  I will send a letter and complete schedule of student fees to parents next month, following Board action in May.  While the budget requires this type of drastic action, I fear that many students will no longer be able to participate in after-school activities.  In some cases, we may not be able to field a team.

• Increase rental facility rates.  We will continue to promote the rental of our facilities, trying to balance increased fees with the risk of pricing ourselves out of the market.  We will bring you a revised schedule of facility rental fees next month, as we do each May.  

• Eliminate all class field trips, unless fully paid for by students or by a grant or donations.  The cost of field trips includes the cost of the bus driver, fuel, other per-mile costs, and admission fees.  This cost would not apply to sports and other activities paid for by the increased fees for athletics and extracurricular activities. 

• Eliminate all high school busing.  To be clear, this includes eliminating the busing of high school students to our high school, as well as to the non-public and charter schools.

• Reduce staff training activities during the school year, unless required by district initiative, grant, Board policy, or law.       

• I am also recommending that our technology and maintenance departments work closely with building administrators to significantly reduce energy and paper usage costs. 

• You will notice that these adjustments to next year’s budget are estimated at $1.2 million.  This is $500,000 higher than the net reductions we initially targeted.  I have been advised by the treasurer that I must cut more than originally outlined for 2008-2009 due to the escalating costs in recent months of fuel and tuition payments.  I know everyone is aware of the impact of fuel costs on an enterprise, but they may not know about tuition payments.  Tuition payments are payments that must be paid to out-of-district agencies serving specific IEP students who reside in our district, as well as to charter schools.       

• I have also increased reductions because we may need to adjust the budget during the coming school year if actual enrollments exceed current projections, or if other unforeseen circumstances arise.  For example, the staffing of intervention specialists or assistants is dictated by federal law and fluctuates with the number and type of students with special needs who enter our schools during the school year.   

• The staff also reviewed the possibility of eliminating or reducing various athletic programs in 2008-2009.  For example, we considered eliminating all middle school athletics, while preserving high school athletics, a source of college scholarships for our students.  We considered fielding one varsity team per sport at the middle and high school levels, or just supporting one major sport during the fall, winter, and spring seasons. 

While we know these choices are not good for kids, we reviewed the various scenarios, knowing that we cannot sustain all programs currently in existence.  However, none of the scenarios was doable for the upcoming school year.  Athletic schedules are completed at least one year in advance so this recommendation would require further study and timely action.      

In conclusion, the cuts that I have outlined will not be easy for anyone, but I know that the staff and I are committed to supporting students academically while seeking ways to operate more efficiently.  Ohio’s funding of public schools is woefully inadequate and convoluted, so we will work diligently to communicate more effectively with our residents and to enlist their support for our students.   Mr. President, Members of the Board.  This concludes my report.  I thank you for your attention and welcome any questions that you may have regarding these recommendations.  The staff and I will closely monitor the impact of these budget adjustments, should you approve them later tonight under the Superintendent’s Recommendations section of your agenda.