Presentation Plano Metro Rotary Club June 22, 2011
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The Financial Picture Academic Performance Future of Education
Agenda
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2011-12 M&O shortfall$25 million 2012-13 M&O
shortfall$36 million 2011-12 Budgeted Revenue$446 million Already
includes a $26 million cut State Funding Shortfall Impact on Plano
ISD
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Estimated at $141 million (includes $8 million from EduJobs)
Policy requires $106 million Cash flow requires $120 million Fund
Balance Reserves
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1- Do Nothing No raises No staff increases Absorb growth Fund
shortfall from fund balance ($18 million) Financial Strategy
Options
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2- Make additional reductions Increase secondary class sizes by
10 students per teacher over the course of the day to save $4
million Reduce insurance benefits to save $1.6 million Fund
shortfall with $12.4 million from fund balance Financial Strategy
Options
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3 Have a tax rate election (TRE) First 2 cents = $3.5 million
per penny Next 11 cents = $1.6 million per penny Total of 13 cents
= $25.1 million Financial Strategy Options
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How much does a TRE generate?
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How did Texas get to this point? Is this a cost or a revenue
problem?
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Texas is 43 rd in expenditures per student Texas spends
$8350/student This is $1159 (12%) less than the national average of
$9509/student ( www.febp.newamerica.net/k12/TX)
www.febp.newamerica.net/k12/TX Texas poverty rate is 56% above the
national average Texas percentage of students on free/reduced
lunches is 15% above the national average Texas percentage of
English language learners is 88% above the national average Texas
ranks 50 th in state expenditures per resident Does Texas spend too
much?
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Are public schools inefficient?
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What happened to State Revenue? What changed?
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2006 Reduction in real estate taxes took 1/3 of school finance
revenue out of the system 2006 law took all of the property wealth
growth out of the education system & moved it to the states
general fund. Texas Franchise Tax did not generate enough new tax
revenue to replace the loss in R/E taxes. The legislature
supplanted billions in education funding with one-time stimulus
funds in 2009-10. Oil & gas tax income to the state has been
dropping for decades. Revenue Changes
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This is NOT a cost problem. This is a revenue problem. What are
we doing about it? Educating community and staff Advocating with
legislators Preparing a variety of budget cutting scenarios What
can you do about it? Send a clearly different message to
legislators Conclusion
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Message: Return local control back to the communities that own
the schools. Create a new funding system Mandated dependence upon
state funding makes it difficult to maintain communitys
expectations and impossible to generate local revenue to support
schools. (Less than 7% of funding is controlled locally.) Give
communities the chance to choose to pay more and use all of it
locally to have more. Solution
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The Financial Picture Academic Performance Future of Education
Agenda
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Defines several measures of quality Compares PISD to other
neighboring districts Located at www.pisd.eduwww.pisd.edu Data
Dashboard
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College Readiness
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Financial Indicators
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Student Assessment & Achievement
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The Financial Picture Academic Performance Future of Education
Agenda
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Future of Education
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We have to educate our children differently than we were
educated. Schools and universities are are still using a model that
is 100+ years old. We have to transform our system into one that
prepares our children for their future, not our past. We must
continue to innovate even in the midst of our financial challenges.
Our community expects us to thrive, not just survive. What does it
mean?
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Creating Schools of Choice (i.e. academies) that will be based
upon either a unique content focus and/or a different learning
style. The mission of Plano ISD academies is to engage students in
a rigorous, distinct project-based curriculum, inspiring creativity
and empowering them to collaborate and compete globally. Leveraging
the lessons learned from these Schools of Choice into the
traditional system What are we doing to innovate?
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Existing Examples Demonstrated in our Schools TodayExisting
Examples Demonstrated in our Schools Today New Learning ModelsNew
Learning Models New CurriculumNew Curriculum Identify Todays
Successes New Professional DevelopmentNew Professional Development
Corporate PartnershipsCorporate Partnerships 21 st Century Skills
Focus21 st Century Skills Focus Develop New Education Model(s)
ElementaryElementary MiddleMiddle HighHigh Senior HighSenior High
Leverage Across PISD Innovating Education