2011-2012 Budget Management2012-2013 Budget Development

Dr. Timothy Mitchell & Dave JanakRapid City Area Schools

Administrative Retreat 2011

“Mind your pennies, nickels and dimes and your dollars will fall in

place”

2011-2012 Budget Management

Effective managers have three components:

1. Analyze available opportunities to produce results and develop an understanding of their costs

Harvard Business Review-Drucker

Effective managers have three components:

2. Commit resources to pursue the most promising opportunities

Harvard Business Review-Drucker

Effective managers have three components:

3. When determined that something leads to positive results and other do not, decide which should receive more resources and which should be abandoned

Harvard Business Review-Drucker

The third component is the most painful step and most likely to be

ignored by public school leaders

Harvard Business Review-Drucker

Public school leaders have three challenges:

1.Void of market forces that reward success and exert pressure on unproductive results

Harvard Business Review-Drucker

Public school leaders have three challenges:

2. To get increased revenue they must utilize a political process-convincing taxpayers-many with no children in school

Harvard Business Review-Drucker

Public school leaders have three challenges:

3. stakeholders disagree about the purpose of education and how to define and measure success

Harvard Business Review-Drucker

What is the process?

Where do you fit in?

2012-2013

JulySupt & BM agree on dollar amount to be cutPrepare initial Issue BriefEx Team discuss draft process at Retreat

AugustAdministrative Retreat discuss processInitial presentation to Budget & Finance

2012-2013

September - NovemberBudget Authority to prepare plan for initial reductionsSupt and BM meet with Budget Authority one on one to review initial proposalsBudget and Finance to review initial proposalsPublic Input Meetings to review proposalsRegular updates included at BOE Meetings

2012-2013

It is time to start a process to eliminate the structural deficit that currently exists

I will be recommending to the Budget & Finance Committee at their next meeting that we reduce expenditures for the 2012 -2013 General Fund Budget by 4 Mill.

2012-2013

Consensus Decision Making

-is an excellent process for developing new programs and to gain support

-Can be a challenge:Personal Agendas and TurfsNot Fair or Appropriate

2012-2013

The process should include:

-utilizing every opportunity to explain the situation

-review current expenditures-Where is the $$ going

-remind people of the mission and priorities

2012-2013

Key-Act responsibly and inspire confidence

without compromising authority

2012-2013

Current Budget:General Fund 78.7 Mill 75 MillCapital Outlay 42.7 MillSped 18.0 MillPension 1.8 MillHealth Insurance 14.9 Mill

Total Overall RCAS 192.1 Mill

The Situation

Based upon 2011-2012 Presentation:

Reductions in 2 yrs to account for:-8.9 % reduction in State Aid-$97 per student- one time money-BOE-compensation policy-Health Insurance Increases-Additional-All/Day Kindergarten

The Situation

2011-2012 Budget Includes:

-3.8 Mill in Fund Balance-Fund Balance 15.7 %-Increased by $300,000(Projected 1.0 Mill)-2.7 Mill Capital Outlay Flexibility-Budget Reduction 1.98 Mill

The Situation

2011-2012 Budget Reductions:-Instruction- $788,941-Support Services- $500,410-Community Services- $56,855-Transfers Out - $740,000

+Co-Curricular- $108,371

The Situation

Why Before What-Begin with Basic Principles

***Put student outcomes first***Invest in what works, not in what doesn’t***The New Normal—Do More with Less***Avoid Short-sighted cost cutting***Work collaboratively with stakeholders***Invite feedback-acknowledge disagreement without compromising authority

2012-2013

For Study and Future Consideration***Efficient use of teachers***Transportation policies and procedures***Outsourcing services***Extracurricular activities***Administrative/Clerical Staffing

2012-2013

For Study and Future Consideration***Salary and Benefits***Leverage alternative sources of funding***Leverage local partnerships and resources***Leverage technology***Reduce mandates that hinder productivity

2012-2013

One of the fascinating outcomes of research on school effects is the number of issues in education where achievement evidence is close to zero but the heat is as high as it is as if it would be if the policy were obviously effective.

Control the Conversation

Four resource shifts with great potential:

-away from quantity of staff towards quality-from remediation to early identification-from isolated practitioners to teacher teams-from full-time teachers toward alternative,

creative, and effective

Control the Conversation

What must we have to provide a high quality

education for all students of the RCAS?

Control the Conversation