DCPS Functional and Financial Review

Duval County Public SchoolsFunctional and Financial Review

Results and Recommendations

Financial & Functional Review

• 2011-12 Budget Forecast• Functional and Financial Review

process• Impacts of the budget reduction

considerations• Next steps

Goals of Session

February 22, 2011 2


• Background• Purpose and Methodology• Employee Feedback• Results & Reduction Considerations• Next Steps• Conclusion

Agenda

February 22, 2011 3


• Florida Law requires a balanced budget

• DCPS Budget Challenges• Funding Sources• History of success

Background

February 22, 2011 4


• Shortfall for 2012 is estimated at $97 million–ARRA Stimulus funds eliminated–¼ Mill Critical Needs Operating tax

referendum not levied

2011 – 2012 AssumptionsRevenue

February 22, 2011 5


• Governor’s budget is funded at 03-04 level for Base Student Allocation (BSA)

• Class Size Reduction (CSR) level funded• Fixed costs increases are included in projected

shortfall• Fund Balance included at 3% requirement• Remaining ARRA funds will be rolled forward to

minimize funding cliff– Edujobs – IDEIA – Title 1

2011 – 2012 AssumptionsAppropriation

February 22, 2011 6


Revenue Information2010 – 2011 General Revenue $ 903,139,406

Estimated Revenue for 2011-2012 – based on Governor’s Budget $833,306,297

Total Estimated Revenue Reduction $69,833,109

Expenses InformationFixed Cost increase for 2011-2012 $ 36,761,000

Estimated Shortfall $106,594,109

Use of fund balance above 3% requirement $9,800,000

Net Estimated Shortfall $ 96,794,109

Budget 2011-2012 Fiscal Year

February 22, 2011 7

Functional & Financial Review

Problem StatementHow will Duval County Public Schools address the projected 2011 – 2012 Budget shortfall of $97M, which is a 9.7% reduction of the $1.0 B 2010 – 2011 budget?

Project GoalIdentify and implement cost reduction initiatives that would meet the projected budget shortfall, while maintaining current strategic direction.

Project Goals

February 22, 2011 8

February 22, 2011 9


Functional and Financial Review ProcessW

ork

Team

Dep

artm

ent

Hea

dR

evie

w T

eam

Impa

ct T

eam

Bud

get

Dep

artm

ent

Prepare Financial Template for Departments

Develop and update

organization charts and complete

financial templates

Distribute financial templates to

department heads

Submit review packages to

Review team prior to scheduled

review sessions

Department Heads review

organization information for review team

Review Team discusses and

evaluates list of departmental

reduction initiatives

Review Team prioritizes reduction initiatives

Department head presents reduction

initiatives to Impact Team

Impact team assigns reduction initiatives to work teams comprised of Subject Matter

Experts

Department heads and work teams

meet and determine the net

impact of reduction initiatives

Work teams make implementation

recommendations

Impact Team assesses work

team findings and recommendations

Impact Team accepts or

modifies work team findings and recommendation based on facts

Review Team accepts or

modifies Impact team findings and recommendation based on facts

Surveyed all employees

Summarize responses

This comprehensive review process was conducted to identify, analyze, and prioritize possible reductions initiatives

District Organizational View

Administrative Services Instructional Program Operational SupportAcademics Department Programs

• School Board office • Clusters Finance Service/Budget• Superintendent’s office oElementary Schools Information Technology• Communication oSecondary Schools Transportation• Community & Family

EngagementoElementary Turnaround

Schools School Choice Risk Management/Health

• Equity and Inclusion oSecondary Turnaround Schools Security• Intergovernmental Affairs • High School Programs Custodial• Human Resources & Kelly

Services• Exceptional Education and

Special Services Maintenance Warehousing/Logistics

• Multiple Pathways and Support Services

Design/Construction/Planning

• Curriculum and Instruction / Professional Development

• Instructional Research & Accountability / Research and Development

• Grants


February 22, 2011 10

100% of the organization was reviewed, including departments, reporting centers and schools. A detailed review of each organizational unit’s financials, major functions, measure of merit, positions, consultants and reduction strategies was conducted.

Review Schedule – Review Team


Date Sessions

Functional Review Areas

October 6th / Wednesday PlanningOctober 13th / Wednesday Review 1 Finance Service/Budget, and School Choice

October 20th / Wednesday Review 2 Transportation Design/Construction/Planning

October 27th / Wednesday Review 3 Communication, Community and Family Engagement, Human Resources, Superintendent’s office

Deputy Superintendent’s office School Board Office

November 3rd / Wednesday Review 4 Equity and Inclusion Exceptional Education and Student Services Multiple Pathways and Support Services

November 5th / Friday Review 5 Risk Management/Health, Security/(SROs)

November 10th / Wednesday

Review 6 Instructional Research and Accountability/ Research and Dev. Curriculum and Instruction, Professional Development Grant

November 15th /Monday Review 7 Warehouse/Logistics, Custodial, Maintenance,

December 3rd / Friday Review 8 Elementary Schools, Secondary Schools, High School Programs

December 8th / Wednesday Review 9 Elementary Turnaround Schools, Secondary Turnaround Schools

December 10th / Friday Review 10 Information Technology Business/Academic Systems Support, Information

Management Infrastructure Support, Telecommunication Support

December 13th / Friday Review 11 Chief Operating Officer, Chief Officer Operation, Purchasing Code Enforcement

December 15th / Wednesday

Wrap-upFebruary 22, 2011 11

12 Review Team meetings, 14 Impact Team meetings and multiple Impact Assessment meetings were conducted to complete this process.



• High Benefit • Minimal difficulties to implement

• High Benefit • Maximum difficulties to implement

• Low Benefit • Minimal difficulties to implement

• Low Benefit • Maximum difficulties to implement

All proposed initiatives

were prioritized using this

Impact Assessment

Mapping tool

Functional & Financial ReviewREDUCTION INITIATIVE IMPACT FORM

Initiative ID: ES 1 Date Assigned – 11/03/2010 Priority – 3 / H Initiative Name: Explore the possibility of moving some of the EE/SS School Psychologists from 12 month to 10 month contracts. Initiative Leader: Ken Sutton Department/Area: Exceptional Student Education

Description of Reduction Initiative Explore the possibility of moving some of the EE/SS School Psychologists from 12 month to 10 month contracts.

Cost Benefit to District – Please provide estimated cost of implementation and 2011/2012 savings Cost of implementation – N/A. 2011-2012 financial savings would need to be calculated by the Human Resources Department.

Major Challenges that could prevent or delay Implementation School Psychologists are current members of the collective bargaining unit. ‘Push Back’ should be expected. Determination of the number of psychologists that must remain 12 month, (responsibility requirements), and the number that can be transitioned to 10 month is currently underway. Initiative will not be applicable to all 55 of the current School Psychology positions – reduces full financial benefit.

Impacted Area

1.EE/SS 2.Budget 3.HR 4. 5. 6.

List of Advantages (pros) for implementation

1. Potential savings of salary expenses between 12 month and 10 month positions.

2.

3.


Do you recommend this initiative? Yes/No __YES_____

Could this effort be fully implemented by September 2011? Yes/No __YES_____

Length of time in months to implement ___Effective July 1, 2011_____

Date the Recommendation is reviewed and accepted by Impact Review team ____________

List of Disadvantages (cons) for implementation

1. Critical attention that federal mandates, (i.e., 60-Day Compliance for evaluations) is not negatively impacted. Federal sanctions apply. 2. Decisions on 10/12 contracts could create a major disruption of staff assignments, work locations, redirection of job responsibilities, etc.

3.

The impact of each

proposed initiative was documented on an Impact Review form

Example


Comments about Academic Services covers an array of areas, Academic Programs, Assessment Tools, Athletic, Staffing, Art/Music/PE, School/Class Size, School Funding, School Hours/Day and Special Programs.

Employe

e Ben

efits

Communication an

d Family

Invo

lvemen

t

Business

Servi

ces

Compensati

on

Academ

ic Serv

ices

Operation

Transp

ortation

School C

onsolid

ation

Tech

nology

34 16 13 27

505

172

82 88

26

Employee Suggestions961 Employee Suggestions


Category Summary of CommentsAcademic Services

• Evaluate the effectiveness of Para professionals• Eliminate or reduce field trips• Stop rewarding teachers with little or no academic results

• Since elementary teachers are certified to teach art, music, and PE, eliminate these positions in K-5 and have elementary teachers teach this content.

• Reduce the athletic program budget• Extend the use of textbook adoptions• Reduce the number of TDE days that teachers take• Cut the standards coach positions• Eliminate the number of assessments given to students

during the school year• Stop allowing struggling students to take AP courses


Employee Suggestions


Category Summary of CommentsOperations • Initiate a Management Cost Improvement Program

• Restrict schools to 1 copier per location• Reduce the amount of paper used throughout the

entire systemSchool Consolidation • Close or consolidate small schools

• Close or consolidate low performing schools

• Redraw school boundaries to reduce cost

Technology • Reduce the number of Information Technology contractors

• Purchase new computers only when they are needed• Maximize the use of current technology to improve

operational efficiency and reduce overall costTransportation • Eliminate after school activity buses




Category Summary of CommentsEmployee Benefits • Allow employees to opt out of health insurance

• Allow retired teachers to return to the classroom as contract teachers

• Allow for early retirementCommunication and Family Involvement

• Reduce the amount of dollars to air Board meeting• Secure more corporate sponsorships to fund special

activities and eventsBusiness Services • Start holding principals accountable for the individual

school budget• Improve processes and eliminate the amount of paper

and forms

Compensation • No salary increase for all employees, including step raises for teachers and paraprofessionals

• Eliminate overtime for all personnel





Review Results


Recommended 74 17,715,104Researching 5 217,000Deferred 13 1,346,618Not Feasible 52 11,366,518Total 144 30,645,240

Communication & CFE 4 212,163Operations 67 17,078,061Academic 66 12,326,026Human Resources 7 1,028,990Total 144 30,645,240

Grand TotalTier 1 - Recommended 58 12,957,719Tier 2 - Recommended 8 663,090Tier 3 - Recommended 8 4,094,295Total 74 17,715,104

Total Researching 5 217,000


Reduction Considerations by Organizational Units

Human Resources Vicki ReynoldsWalter Carr

Communication / Community and Family Engagement

Jill Johnson

Operations Doug Ayars Mike PerronePaul Soares Steven BrightSally HagueTerri Stahlman

Academic Services Pat Willis Debbie MenardKathy Leroy Tony BellamyDana Kriznar Jackie ByrdLawrence Dennis Ken SuttonElaine MannTim Ballentine


The Detail Budget Reduction Considerations Worksheet is attached

If all $17.7 million of the reductions discussed were realized, a budget shortfall of $79.3 million still exists.


Initiatives DescriptionFurlough all DCPS employees

The estimated cost saving to furlough all employees (100% of workforce) for one day – is approximately $2.5 million. (Impact Bargaining)

Health Insurance Cost All employees share in the expected $16 million dollar health care premium increase. (Impact Bargaining)

Reduce allocation of school funds

Reduce school based allocation by 1% for all schools. • Elementary $3,050 per FTE ≈ $70K students• Middle $2,977 per FTE≈ $30k students• High $2,744 per FTE≈ $40K students1% across the board reductions is about $4.1 million

Financial & Functional ReviewAdditional Considerations


Budget Time Line


Oct. 1 – Feb 22 Functional and Financial Review ProcessFeb. 23 Budget Guidelines are distributed to divisionsFeb 24 – March 3 Division Budgets are preparedApril 19 School Guidelines are distributedApril 26 – May 10 School Budgets are preparedMay 6 Legislature AdjournsMay 11 Legislative Appropriation receivedJune 6 Budget Resolutions Board Meeting

• Reappointment of staff • Adoption of previous year’s budget

July 15 Department of Education computes Required Local Effort (RLE) millage and certifies rate to each district.


Budget Time Line


July 19 Submit tentative budget to the Board for approval to advertise required notices prior to the first public hearing (LAW: within 24 days)

July 23 Publish Budget Advertisement in local newspaper (LAW: within 29 days of Certification)

July 26 (Day 3 after Ad) Board conducts first public hearing and adopts the 2011/12 Tentative Budget and Millage (LAW: within 35 days; and more than 2, no later than 5 days after Ad)

July 29 Proposed Millage to Property Appraiser/Tax Collector (LAW: within 35 days)

September 15 Annual Financial Report (AFR) approval and Final public hearing to adopt final budget (LAW: within 80 days, but not before 65 days after certification) Final Budget Resolutions for 2010/11 school year approval

September 16 2011/12 Adopted final budget (District Summary) due to State (LAW: within 3 days of Board Approval

– Direction on negotiable items discussed earlier


Next Steps


Documents

DCPS Functional and Financial Review