Joplin SchoolsFinancing Disaster – There’s No Spreadsheet for This

Make payroll!

MAY 23: CHALLENGE #1

• Locate temporary spaces for schools and negotiate contracts

• Construct temporary facilities, fix damaged facilities by August 17 for start of school

• Supplies & contents for temp facilities: replace EVERYTHING by August 17

• Work with FEMA, SEMA, insurance on temp facilities and rebuilding

• No projections, no budget, no assurance of reimbursement: just spend!

MAY 24: THE RECOVERY PROCESS BEGINS

• Good decisions early on:– Hired insurance attorney (public adjuster)– Hired disaster experts to help navigate the world

of FEMA and SEMA– Big-picture planning – took the time to think

about what was possible rather than what seemed impossible – seized opportunities

THE RECOVERY PROCESS…

Transition of damaged or destroyed facilities to temporary facilities

Temporary Facility Rental Costs• Serves 3,000 students

JHS 11/12 – 36 month (Mall) $ 3,402,990EMS – 30 month (Warehouse) $ 1,080,000JHS 9/10 – 36 month (City Auditorium) $ 1,200,000FTC – 36 month (Warehouse) $ 1,260,000Buses $ 258,336Athletics $ 70,000Temporary Build-outs $14,900,000Temporary Furnishings & Equipment $ 7,500,000Supplies for Temporary Facilities $ 820,000

TOTAL: $30,491,32615%

Local match for FEMA projects $ 4,573,700*August 2011: $1.5m received from the Governor's office.

SHORT-TERM RECOVERY – TEMPORARY FACILITIES

Cost Saving Solutions

• Two Elementary Schools moved to vacant buildings already owned by Joplin Schools.

• Grades 9/10 returned to a former High School site and non-K-12 programs were moved from that site.

• This created a domino effect, adding 15% local match costs, and allowed a continuation of displaced programs: Early Childhood and Beacon School.

SHORT-TERM RECOVERY – TEMPORARY FACILITIES

• Rebuilding / construction / 21st Century Learning design– Two elementary schools– Middle school– High school– Technical school

• Used pre-storm facilities plan as foundation but reworked for new realities – known and unknown

LONG-TERM RECOVERY – PERMANENT FACILITIES

PROPERTY LETTER

PROPERTY COMPARISONOld JHS/FTC 38.05 acres

New JHS/FTC 66 acres

73% increase

JOPLIN HIGH SCHOOL / FRANKLIN TECH

PROPERTY COMPARISONOld Irving 2.1 acres

New Irving 13.6 acres

648% increase

IRVING ELEMENTARY

PROPERTY COMPARISONOld East 20 acres

New East 34.9 acres

75% increase

EAST ELEMENTARY / MIDDLE SCHOOL

• When making tough or unpopular decisions remember these key things:– Transparency builds trust– Tell your story before the media does– Need full support and faith of board & leadership:

speak the same language publicly– Be prepared to use “goodwill” capital – pre-storm

relationships and perceptions matter

LONGTERM RECOVERY…

• $62 million gap between reality and vision for Joplin Schools

• 11 months after tornado devastated one third of the community, we had to ask for the largest bond issue in city’s history (a history that included many failed bond campaigns…)

LONGTERM RECOVERY – VISION MEETS REALITY

• $62 million bond request – largest in community’s history

• Passed with 57.68% - needed 57.14% (4/7th’s)

• Passed by 48 votes

LONGTERM RECOVERY…

LESSONS LEARNED

• Review insurance policy annually – keep current• Check “business interruption” insurance – should

have $1 - $5 million (district of our size)• Be aware of outlying equipment, grounds, lights,

playgrounds – are they adequately insured?• Codes & standards – keep these in mind when

replacing older facilities• Blanket coverage – total loss limit per event vs. by

building limit

LESSONS LEARNED

• Keep good records / inventories• Back up accounting systems – minimize loss of

information that pertains to operations• Develop relationships with city leadership – input on

city redevelopment• Don’t put kids in hallways – check your safety plan

QUESTIONS?

Visit joplinschools.org and click the Operation Rising Eagle banner to learn more.

Contact: Paul Barr, CPAChief Financial Officer, Joplin Schools

pbarr@joplin.k12.mo.usp. 417-625-5200 ext. 2009 c. 417-499-3257