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WASBO Accounting ConferenceThursday, March 17, 2016
Presented by:K it Dailey, Public Outreach Specialist, Eppstein Uhen Architects (EUA)
Bob Avery , D irector of Business Services, Baraboo School District
CommunicatingFiscalInformationKnow YourAudience and YourMessage
Agenda for Today
u The Challengeu Know Your Audienceu 3+3u Tools to Tell Your Storyu Key Variablesu Referendum Communication Tips and Tacticsu Questions
Recurring: 2Pass :2Fail:0
The Challenge
Communicating about school financial issues is one of the most difficult yet most important
topics for school districts.
As a school business official, you will be called upon to communicate on these topics.
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The Wisconsin School Public Relat ions Associat ion is here to help.
www.wspra.org
Good News!
Does it Really Matter if Residents Understand?
Ø School funding issues affect nearly everything that happens in a district.
Ø Funding directly impacts children and the opportunities they will (or will not) have today and in the future.
Ø School funding is complex, it can also easily become a “hot topic” in local communities around which there may be many different perspectives.
YES.
Why is School Funding Such a Big Issue?
Sour ce: Depar tm ent of Public I nst r uct ion
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Know Your Audience
Ø What is the background knowledge of your audience?Ø Are they familiar with revenue limits? State aids? Mill rates?Ø Where do they live?Ø How long have they lived in the district?Ø What is their specific question or concern?
Who your audience is should influence how you craft your message.
Know Your Audience
Community School Board Administrat ion Staff
ThreeCriticalQuestions
Whatare theissues?
Whyisthisimportant?
Howwillitimpactme?
Communicate Effectively
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Ø Focus on needs as central, consistent, simple messages
Ø Provide supporting facts to build credibility: 3+3Ø Use examples, stories, and images to move messages from
abstract to concrete ideas
Create Key Messages that Stick
Example Key Message:
“The amount of money a district can generate is dependent on enrollment and our student population has slowly been declining. Despite ongoing efforts to reduce our operating budget, our costs still exceed
our revenue.”
Think 3+3
Supporting Facts (the +3)Example:
• In the 2000/2001 school year, our student population was 1200 students. Today we serve 980 students.
• In the last ten years, we have cut more than $2.1 million from our general operating budget in an effort to balance expenses with revenues.
• During this timeframe, we have eliminated 3.5 administrators, 9.5 teachers, 12 support staff and reduced all department budgets by approximately 10%.
Think 3+3
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Use Them Effectively
Ø Use key messages consistently and repetitivelyØ Use multiple mediums to carry your messagesØ Always think of your audience first!Ø Provide clear visuals to tell your story
Ø SchoolDistricts byCategoryofGeneralEqualizationAid
DPI Maps
Sour ce: Depar tm ent of Public I nst r uct ion
Ø Change inMembership
DPI Maps
Sour ce: Depar tm ent of Public I nst r uct ion
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$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
♦ Dist r ict■ St at e Ave
Di st r i ct Val ue per M ember Compared t o t he St at e AverageØ StateEQAid
valuepermember
Ø AvailablefromDPI
Sample Reports
Sour ce: Depar tm ent of Public I nst r uct ion
u Forecast5u RWBaird
u Ehlers
Sample Reports from Vendor Software
Communication Tools to Tell Your StoryØ Direct communication to all stakeholders groups
Ø Fact sheets & FAQs
Ø Postcards and newslettersØ E-blasts, direct parent outreach by email/text
Ø Video
Ø Community Outreach
Ø One-on-one info sessions
Ø Small group discussions/focus groupsØ Large community meetings/forums/workshops
Ø Social media
Ø “Backpack” network/key communicators
Ø News media
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District Website
Sample Mailer
Manage the Media
Ø Assume local reporters know nothing about school finance, budgeting, and District goals
Ø Always respond to calls and questions ASAPØ Provide written materials like new releases, fact sheets, data,
background info for review and help them understand itØ Be as proactive as possible to help reporters get accurate
information and stay on messageØ Correct inaccuracies and errors promptly but politely
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You Are the Expert
To earn and keep the trust of your audience, you must demonstrate competence – that you know what you’re talking about.Therefore, you need to communicate regularly, and accurately, to various audiences to build that trust.And, even then, there will be people who don’t trust you.
Key Budget and Finance VariablesØ Avoid the JargonØ RevenuesØ ExpendituresØ Historical DataØ Impact of the LevyØ What is the Mill Rate?Ø Comparative DataØ Fund Balance
Avoid the Jargon
u Negative Tertiary Aidu Special Adjustment Aidu Per Pupil Adjustmentu Non-Recurring Exemptionsu Guaranteed Valuesu Cost Ceilingsu Defeasement
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Revenue Limits
90.8%
9.2%
Subject to Revenue LimitOutside Revenue Limit
Subject to Rev Limit
Local Property Tax 38.5%
State General Aid 52.0%
Computer Aid 0.3%
Subtotal: Revenue Limit 90.8%
Outside Revenue Limit
Other Local 1.5%
Inter-District 2.5%
Intermediate Sources 0.0%
Other State 2.4%
Federal 2.4%
Other 0.4%
Subtotal Outside Rev Lmt 9.2%
State and Local Support for Education
57.6%
42.4%
State Aid Local Property Tax
Expenditures
76.0%
14.4%
6.6%
3.0%
Salaries and Benefits
Purchased Services
Supplies and Equipment
Debt Service, Insurance & Other
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Trend Information
$0
$5, 000, 000
$10, 000, 000
$15, 000, 000
$20, 000, 000
$25, 000, 000
$30, 000, 000
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
M ax Revenue Lim it
Gener al Aid Cer t
Tot al Tax Levy ( All- Funds)
Dividing the LevyCo unty Co unty -
Mun i Co deTa xa tio n District Ta x A p p o rtio nme nt
Eq ua l ize d V aluePe rce n t o f Sch ool
District in Ta xa tio n District
To ta l Ce rti fie d Ta x Le vie s F ro m PI-401
A mo unt o f Ta x Levy fo r Ta xa tion District
Co lumb ia 11 004 T. Ca le d o n ia 1,076,727.00 0.068995481 13,882,037.82 9,577.98Sa uk 56 206 C. Ba ra b o o 739,289,000.0047.372825360 13,882,037.82 6,576,313.52Sa uk 56 002 T. Ba ra b o o 196,874,400.00 12.615494850 13,882,037.82 1,751,287.77Sa uk 56 008 T. De l to n 212,264,303.0013.601662890 13,882,037.82 1,888,187.99Sa uk 56 010 T. Exce lsio r 35,647,028.00 2.284222317 13,882,037.82 317,096.61Sa uk 56 012 T. F a i rfie ld 102,662,500.00 6.578499997 13,882,037.82 913,229.86Sa uk 56 016 T. F re e d o m 22,592,745.00 1.447718231 13,882,037.82 200,972.79Sa uk 56 018 T. Gre e n fie ld 99,655,788.00 6.385833201 13,882,037.82 886,483.78Sa uk 56 026 T. Me rrima c 26,853,187.00 1.720722665 13,882,037.82 238,871.37Sa uk 56 034 T. Sump te r 3,164,801.00 0.202796964 13,882,037.82 28,152.35Sa uk 56 146 V . La k e De l ton 1,722,041.00 0.110346492 13,882,037.82 15,318.34Sa uk 56 161 V . No rth F re ed om 25,091,900.00 1.607861333 13,882,037.82 223,203.92Sa uk 56 191 V . We st Ba ra b o o 93,681,700.00 6.003020218 13,882,037.82 833,341.54District To ta ls 1,560,576,120.00 100.000000 13,882,037.82 13,882,037.82
What is the Mill Rate?
u A mathematical constructu No relation to what the tax rate any individual
property owner will payu Useful for comparative purposes
u But don’t tell the whole story!
u Useful for trend analysis and future planningu USE WITH CAUTION
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Example Tax Bill
Note the district levy increase was 6.38%, this taxpayer’s increase is 10.70%
Why the discrepancy?
Multiple Possible Reasons
u Shifting ratio of equalized values between municipalities in the district
u Shifting ratio of assessed values between properties within a municipality
u Reassessment
u Improvement Project
u New TIF that takes property within a municipality off the tax rolls.
Comparative Data
$0. 000
$2. 000
$4. 000
$6. 000
$8. 000
$10. 000
$12. 000
Bar aboo Lodi M aust on Por t age Poynet t e Reedsbur g Sauk Pr air ie
Tom ah W I Dells
$8.8
95
$11.
709
$11.
957
$9.9
84
$9.4
67
$9.2
78
$10.
328
$8.5
05
$7.7
68
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What Does the Data Mean?
$0. 000
$2. 000
$4. 000
$6. 000
$8. 000
$10. 000
$12. 000
$14. 000
Bar aboo Lodi M aust on Por t age Poynet t e Reedsbur g Sauk Pr air ie Tom ah W I Dells
Mill
Rate
Sauk Co Dist r ict s
RL Levy Tot al Levy
Fund Balance
u What it isu A snapshot picture in a moment in t ime (the end of business on June
30th)u Short-term assets minus short -term liabilit ies
u And what it isn’tu A statement of your cash posit ion
u Why is it important?u Indicator of district fiscal health
u Trendsu Ability to respond to emergencies
u Bond Ratings!
Fund Balance
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Cash Position – Not Fund Balance
Referendum Communication Tips & Tactics
• Taxpayers mustbe aware of the FACTS
• Information mustbe offeredOBJECTIVELY
• Consistent information provides CREDIBILITY
• Open communication and community engagement builds TRUST• Trust needed togenerate SUPPORT forchange Support for
change
Trust
Objectivity
Credibility
Facts
Why is Communication SO Important?
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Ø It is never too early to begin communicating about your
needs
Ø Communicate from the “inside-out” throughout the
process
Ø Consistency is critical; stick to your key messages
Critical Referendum Communications
Create a communications plan
Declaracion de Mision del Distrito El Distrito Escolar de Baraboo esta dedicado a ser el mejor de la comunidad educativa mediante el apoyo al crecimiento máximo de
cada estudiante, permitiendo que cada uno tenga éxito y contribuya positivamente a un mundo en constante evolución.
PORQUE se Propone este plan?
Que hay en la BOLETA para el Martes 1 de Abril de 2014?
Hoja Informativa del Referéndum
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59%
de los residentes del distrito indicaron
que sería probable un apoyo a un
referéndum de $10M para corregir
la seguridad, proteccion y proyectos de
mantenimiento a través del distrito,
en una encuesta a través de toda
la comunidad conducida este
otoño.
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Para revisar las resoluciones electorales aprobadas, por favor visite
http://www.baraboo.k12.wi.us/referendum.cfm
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Distrito Escolar de
Vote el 1ero de AbrilFase 1:
Seguridad y MantenimientoBARABOO
Capital MaintenanceTechnology Infrastructure
Safety & Security
Learning Spaces
What is included in the Referendum PROJECT?CUSHING DOUSMANMAGEE
WALES MIDDLE SCHOOL HIGH SCHOOL BRANDY-BROOK DISTRICT OFFICE
CAPITAL MAINTENANCE » $ 21.2M » Upgrade and repair failing, inefficient systems
Repair, replace or upgrade failing plumbing, HVAC and electrical systems
Repair failing roofing, windows, doors, tuck-pointing and/or finishes
Upgrade accessibility to meet ADA code compliance
Remove/abate asbestos Replace failing flooring
Improve site drainageTECHNOLOGY INFRASTRUCTURE » $ 7.9M » Upgrade technology infrastructure for data networks
Upgrade wireless and switched network equipment
Install fiber optic wide-area network
SAFETY & SECURITY » $ 12.6M » Establish controlled access and improve safety
Renovate or construct secured main entrances
Upgrade building systems to improve perimeter lighting, site surveillance,
door monitoring, fire alarm and intercom systems
Add internal emergency lighting and emergency generators
LEARNING SPACES » $ 7.9M » Renovate/reconfigure classroom and commons spaces
Create small group learning space *
Create multi-purpose space in cafeteria, kitchen and serving areas
Increase instructional classroom space
Create or reconfigure early learning/4K classroom
Add flexibility to Library Media/Activity Center
Improve collaborative learning spaces in 6th, 7th, 8th grade commons spaces
Relocate various classrooms to create department efficiencies and collaboration
Snap here to learn more!
Total cost not to exceed $49,600,000.
FOLLOW USwww.kmsd.edu/referendum
To address critical needs including the following:
- Replace failing, inefficient building systems
- Provide adequate technology infrastructure
- Cost-effectively repair and revitalize aging schools
WHY is the District proposing this plan?
Preliminary tax impact estimates are
based on a phased-in-approach to
borrowing over several years using an
estimated interest rate of 4.5%. Each
borrowing (loan) would be amortized
for a maximum of 20 years. Tax impact
estimates have been provided by
financial advisors from Robert W. Baird.
What is the estimated IMPACT to taxpayers?
Not-to-exceed PROJECT COST of $49,600,000
Estimated PROPERTY TAX IMPACT
Tax Impact: ($0.44 per $1,000 of property value)
Per YearPer Month
$ 100,000 of property value
$ 44.00$ 3.67
$ 300,000 of property value
$ 132.00$ 11.00
$ 500,000 of property value
$ 220.00$ 18.33
Major construction activity will be planned to minimize the impact
on students and staff. All significant projects will be completed by
the start of the 2016-2017 school year.
What is the planning & construction TIMELINE?SPRINGSUMMER
FALLWINTER
SPRINGSUMMER
FALLWINTER
SPRINGSUMMER
FALLWINTER
SPRINGSUMMER
DESIGN
CONSTRUCTION
TECHNOLOGY
Major Activity
Minor Activity
2014 SCHOOL YEAR2015 SCHOOL YEAR
2016 SCHOOL YEAR
LEARN MORE. BE INFORMED. VOTE APRIL 1.
* Improvements are being done by reconfiguring existing office spaces
Communication materials matter!
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Ø Use charts, graphs, and tables to help tell your story
Ø Avoid spreadsheets, columns of numbers, and complicated graphics
Use Visuals to Tell Your Story
Ø Keep the focus on students with lots of pictures!
Keep Kids First
Communicating the Cost
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But Be Prepared for This…
Questions?
Thank You!
P resen ted b y:
Kit Dailey, Public Outreach Specialis [email protected]
@KitDailey_EUA
P resen ted b y:
Bob Avery, Director of Bus iness Servicesbavery@barabooschools .net
608-355-3950@BAvery_SFO