1

2

INSURANCE

District Insurance Committee is a Sub-Committee to the Bargaining Leadership Team (BLT).

• The School Board contributed an additional $982 this year for each employees Insurance Benefits which equals 2.17% of the Average Teacher Salary.

• The School Board is providing a Fully Funded Plan for Individual employees and we expect this will continue.

• We implemented two (2) new plans this year and that process has gone very well. We have had issues, but with the help of CIGNA we are working to address those issues as promptly as possible.

• If you have a question, please submit it on a card before you leave tonight.

3

BUDGET

Presented by:

Tony Donato & Bill Collins

4

General Revenue

Florida Department of Education-State and Local Funding

0

5000000000

10000000000

15000000000

20000000000

25000000000

2005-06: FINAL 2006-07: FINAL 2007-08: BEGINNING 2007-08: FINAL 2008-09: 3RDCALCULATION

LOCAL

STATE

5

Osceola Funding Per FTE

5903

66766817

69797184

6699

5962

5000

5500

6000

6500

7000

7500

05-06End

06-07End

07-08Beg

07-08End

08-09Beg

08-09Jan

09-10Proj

$

6

Osceola UWFTE

49,175

51,061

51,913

51,047

50,195

47,500

48,000

48,500

49,000

49,500

50,000

50,500

51,000

51,500

52,000

52,500

2005-06 Final 2006-07 Final 2007-08 Final 2008-09March

2009-10Forecast

7

8

Undesignated Fund Balance

9

Osceola General Fund Spending by Function 2007-08

4

7

77

12

School Board, Superintendent, Central and FiscalServices, Admin Technology

Library Materials, Staff Training, Curriculum Development

Teaching, Transporting, Supervising, Counseling students

Acquiring, Operating, and Maintaining school facilities

10

Osceola General Fund Spending by Object 2007-08

76

17

43

Salaries and Benefits Purch Services and Energy

Supplies Capital Outlay and Other

11

2009-10 Potential Deficit Reduction Plan

1 Implement instructional staffing benchmarks consistent with state class size standards and minimum enrollment requirements for all subject areas

2 Implement instructional support staffing benchmarks for school and district offices

3 Transfer ESE compliance specialist and other support staff positions currently funded by district funds to IDEA federal funds

300,000

5,800,000

2,000,000

12

2009-10 Potential Deficit Reduction Plan

4 Implement a staffing model for school resource officers that will bring expenditures in line with the Safe Schools categorical

5 Fund the personnel costs of attendance assistants within the Safe Schools grant

6 Negotiate policy that retired employees who are rehired after 7/1/09 and employees on extended DROP will not be paid for experience included in calculation of retirement benefit

1,000,000

515,000

250,000

13

2009-10 Potential Deficit Reduction Plan

7 Eliminate the payment of stormwater fees as permitted by contract

8 Hold School Board health insurance contributions at or below the 2008-09 school year rate

9 Freeze purchases of white fleet vehicles for the 2009-10 fiscal year and establish criteria for future purchases

125,000

3,780,000

70,000

14

2009-10 Potential Deficit Reduction Plan

10 Reduce utility costs for portables removed from school and district sites (@ $50k per 100 portables removed)

11 Invoice Four Corners Charter School for the costs of accounting services provided by the District

12 Reduce categorical expenditures in proportion to state reductions in appropriations ( Reading, DJJ Supplement, Instructional Materials, SAI)

100,000

17,000

1,000,000

15

2009-10 Potential Deficit Reduction Plan

13 Reduce district staff

14 Freeze or eliminate vacant positions at the district office

15 Reassign district staff to school sites (Items 13, 14, and 15 total 5% of cost of district staff.)

16 Reduce district department discretionary appropriations (Items 13, 14, 15 and 16 total 5.4% of department appropriations)

700,000

900,000

1,000,000

850,000

16

2009-10 Potential Deficit Reduction Plan

17 Reassign or reduce ESOL Compliance Specialists to fill school instructional vacancies to keep ESOL staff costs within FTE funds generated

18 Reassign or reduce school psychologists and social workers in proportion to state budget reductions

19 Staff schools in anticipation of 1.5% reduction in student enrollment

900,000

345,000

1,250,000

17

2009-10 Potential Deficit Reduction Plan

20 Implement districtwide 4-day work week during the summer

21 Implement a comprehensive energy savings plan to achieve a reduction of at least 10% of utility costs

22 Delay adoption of new language arts, music and health textbook series pursuant to Senate Bill 6A

150,000

1,300,000

1,500,000

18

2009-10 Potential Deficit Reduction Plan

Additional Savings Proposals Dependent on Legislative Action:

23 Request delay in implementation of Class Size Reduction to room by room standard

24 Request delay in scheduled retirement rate increase

25 Exercise option to transfer up to .5 mills of 1.75 capital outlay millage to General Fund

Total of Above Items Total Needed Additional Savings Needed

4,200,000

2,135,000

6,500,000

36,687,00046,284,390

9,597,390

19

2009-10 Potential Deficit Reduction Plan

Additional Items Under Consideration

26 Implement a custodial staff allocation model based on facility size and use, and examine expanding the use of contracted custodial services

27 Explore savings options for districtwide lawn care and maintenance

20

2009-10 Potential Deficit Reduction Plan

Explore potential revenue generating ideas

28 Contract with major advertisers to support educational programs

29 Issue RFP/Bid for consolidated technology purchases

30 Issue RFP/Bid single-vendor beverage and snack contract

31 Increase lease rates for cell phone towers on district-owned properties

32 Support a one-cent increase in the state sales tax rate for the next three year as proposed by the Florida Education Association

33 Explore developing an in-house credit card payment system for food service to replace mylunchmoney.com and retain processing fees for the District

34 Utilize funds that may become available from the federal stimulus legislation (ARRA). Recent estimates for Osceola are $7.1 million in Title I and $9.4 million in IDEA over two years, and other categories yet to be determined, e.g. construction, energy, dislocated workers, homelessness prevention, and budget stabilization.

21

QUESTIONS & ANSWERS

1 What is the total dollar amount in the "reserve account" at this date? What is the minimum amount the state says we must maintain in that account?

The current projection is that we will have $31.3 million in undesignated fund balance at the end of this year. This is a decline of $11.2 million from 2007-08. The critical problem comes next year when the fund balance will fall below 0 if we do not receive additional funding or make drastic cuts. The state requires a minimum of 3% of revenues, or approx $11 million, but we will not allow the fund balance to fall that low.

22

QUESTIONS AND ANSWERS

2 What is the current salary of a School Board member?

$35,236. This is set by statute.

3 What is the cost of giving step to just teachers?

$2.1 million for teachers, $3.3 million for all employees

4 What is the cost of a 3% raise for teachers with 25+ years experience?

When funds become available for raises, the bargaining team will evaluate many different scenarios. By contract, the first thing to be considered when funding increases is step, which we will negotiate at that time.

5 What is the cost of a 3% raise for teachers inclusive of their step and 3% for teachers that no longer received their step?

Same

6 What is the cost of a 3% raise for teachers inclusive of their step, 3% for teachers that no longer receive their step, and a raise of 3% for any PSS person making under $12 per hour?

Same

23

QUESTIONS & ANSWERS

7 When we are able to give steps again, will I be on the step for the years experience I have, or will I lose a year?

This exact plan will be negotiated, but the intent is to restore everyone to the correct step based on years of experience. We are keeping track of everyone's correct years of experience.

8 What is planned to be done for the step increases of teachers who reached their 20 or 24 step this year?

The BLT has tentatively agreed, pending ratification, that all salaries are frozen this year. The BLT is creating a recovery team to determine a method of restoring steps as funds become available.

24

QUESTIONS & ANSWERS

9 How can the Board justify the fact that some people hit those milestones last year and received a large step, yet this year the teachers received nothing except an increase in insurance costs?

Last year we had money. This year we don't. The state reduced funding to the school district.

10 If we do not receive a step increase this year, will we at least receive our year of service to calculate future steps?

Yes

25

QUESTIONS & ANSWERS

12 Why have salary steps been mysteriously dropped from communications? It seems as if there was a ruling it has not been communicated to members.

The financial condition of the state has been deteriorating rapidly during the year. We knew state funding cuts would be necessary, but the amount was unsettled until the special session in January. We waited to see if the legislature would do anything to improve the revenue picture before finalizing salary discussions.

13 The School Board chose to direct the administration to not discuss pay with the Union. If that decision is allowed to stand unchallenged, in essence the School Board can choose to never again discuss pay with the Union. Why does the Union not insist on having a discussion?

The School Board has never directed the administration not to discuss salaries with the BLT. As explained in the previous answer, discussions were delayed until after the legislature acted in January.

14 If we go to a 4-day week, is our salary going to be affected? If so, how?

We are not currently discussing going to a 4-day week. If we do, the intent would be to increase the hours worked per day and maintain the same salary.

26

Our goal is not simply to help us survive this financial crisis, but to ensure Osceola Public Schools flourish and continue to provide the best possible educational experiences for each and every student.