Topics for Discussion

Legislative Update

School Aid BudgetHighlights of State of the StateImpact for Kalamazoo RESA Knowns and Unknowns

Employee Compensation and Benefit Changes

For Kalamazoo RESA 2014-2015 school year

Program Highlights and New Initiatives

Kalamazoo RESA

2 “MSBO Leaders Shaping the Future”

Snapshot: Michigan’s Economy

Modest growth in revenues anticipated for 2015 (3%) (2014 Revenue estimate has been decreased)

SAF Operating budget in deficit in both 2014 and 2015 budget years. Current surplus (fund balance) will be spent with a $15 million deficit remaining at the end of the 2015 budget cycle (house estimates)

Consumer Price index shows increase of 1.6%

Road funding debate is still in play – watch for tax policy changes that could effect school funding

Unemployment rate is expected to improve from 7.6% in 2014 to 7.1% in 2015

Pupil estimates continue to decline statewide

Continue to see positive growth estimates in real estate and auto markets

Overall employment estimated to be up 1.2% and overall personal income is projected to grow 2.6%

State Budget: Proposal

Pre-kindergarten expected to see another $65 million increase statewide

MPSERS contribution rate 20.96%-25.78%approximate 4% increase to KRESA budget – Governor decreases rate by 1.2 percentage points.

Major Factors:

Foundation allowance Governor $83-$111 increaseHouse $56-$112 increaseSenate $150-$300 (eliminates many categoricals)

ISD State Aid Same as2013-2014 – no increase anticipated for ISDs (Senate proposal includes increase)

Three varying versions: Executive, House, Senate

Kalamazoo RESA’s strategy is to balance the budget through various approaches

State Budget: Proposal

Consolidation of Services Varies from $0 - $5 million

Technology Readiness Grants$50 million – same as current year

Continues transfers to community colleges and universities

Continues most ISD categoricals at current year funding levels

General Fund Revenues Estimating 1% increase in taxable values No increase in ISD State Aid Grant changes – reductions and increases Restoration of some Federal revenue due to Sequestration Focus on Fee for Service Models

Special Education Revenues Estimating 1% increase in taxable values Foundation allowance increase (used House version) Restoration of some Federal revenue due to Sequestration

KRESA Budget Highlights

Approved by the Board of Education on May 15

Average of 1% increase in salary schedules

Steps granted for all eligible employees

No market adjustment have been approved at this time. Some areas have been identified for further study

Health Insurance to continue using hard cap limits

Performance pay analysis has been put on hold. Waiting for legislation to be finalized related to teacher and administrator evaluation.

Total cost to the budget for all recommendations approved by the Board of Education - approximately $ 1,560,000

Kalamazoo RESA Compensation and Benefit Changes for 2014-2015

Health Insurance Plan decisions implemented for 2014 will remain for 2015. There will be an open enrollment period during the month of November for any changes employees would like to make. Estimated 3.5%-5% increase in employee health/dental/vision/life/long-term disability insurance January-June 2015 for budget purposesComparison to Cap will be recalculated for 2015 when actual renewal rates are received and any employee contribution adjustment will be effective January 1, 2015

Affordable Health Care Reform – Next phase effective January 1, 2015KRESA’s measurement period will run from April 2014 – October 2014. Our administration period will be November and December of 2014 and our stabilization period will be January – December of 2015.

Continue Tier 2 benefit plan for all new hires afterJuly 1, 2013

Single subscriber coverage for Grades 9-12Reduced paid time away benefits

Costs: Health Insurance

Increased Compensation CostsWages – 1% raise = $ 191,295Step Increments = $ 465,678Retirement = $ 323,769Health Insurance = $ 522,266Other Benefit Costs = $ 60,562Increased Costs = $1,563,570

Budg

et: S

umm

ary

Special Education fund budget projectionTotal Revenues = 36,253,404Total Expenditures = 36,253,404Excess/(Deficit) = -0-Unrestricted Fund Balance = 700,000

2%Combined fund balance = 7%Reduction in $’s paid to LEAs = $2,500,000

General fund budget projectionTotal Revenues = 35,816,196Total Expenditures = 35,912,848Excess/(Deficit) = (96,652)Unrestricted Fund Balance = 4,506,306

13%

State aid revenue?

Foundation allowance?

Student counts?

MPSERS rates?

New requirements?

Still up in the air

Rebalancing

budgetsEliminating positions through attrition wherever possible

Pursuing more grant

funding

Taking on new

initiatives

Spending down fund

balance

Cost Containment Strategies

What we’re doing

School Aid Budget ProcessWaiting for conference committee to be namedGovernor had set goal of June 1st for completion – did

not happen. Hoping for progress in next two weeksEAA

Possible ISD RoleRoads

Impact on School Aid Fund BudgetCommon Core and SBAC

Uncertain futureMichigan Merit CurriculumSystem School Reform Committee

Legislation to watch

Evaluation ModelsTeachers and administratorsCouncil on Educator Effectiveness

Early ChildhoodGSRP and Head Start Expansions

Expansion in work with private providers

More collaboration between special education early childhood programs

Working with The Learning Network on county-wide pre-kindergarten initiatives

Early/Middle CollegeApplication will be made to the State of Michigan by June 30th

Pilot program for 2014-2015 in a limited number of districts

Pilot programs will be coordinated with EFE and EFA as well as a liberal arts option

Full implementation for 2015-2016

Some of the New Initiatives for 2014-2015

Project Lead the WayPilot program in place during the 2013-2014 school year

STEM focus for Middle Schools and High Schools

Funded with donations from business and industry as well as community partners

Major expansion for 2014-2015 school year

Special EducationMoving towards graphing all individual student progress data

Using research based practices to guide high quality instruction

Continued focus on improved outcomes for students with disabilities

Kalamazoo RESAStrategic Plan Update

A fresh new approach . . .

Five

Criti

cal Q

uest

ions To transform lives by inspiring

educational excellence

Why do we exist?

CollaborationInnovationCompassionTrustworthyRespect

How do we behave?We work togetherWe find a better wayWe lead with heartWe act with integrityWe value all people

Provide educational services and support for students, families, schools and community

What do we do?

Through highly talented professionals, successful multi-sector partnerships, innovative practices and a relentless drive to improve

How will we succeed?

All learners supported through strong collaborative relationships

Highly effective employees

Positive, safe and inclusive organizational culture

All children ready for kindergarten

All students transition ready for college, career, or life

What are we focused on?Leaders in educational excellence

Data driven organizational practices

Quality and sustainable infrastructure

A continuum of professional development to support high-quality instruction and leadership

Visibility and understanding of KRESA programs and services

Kalamazoo RESAHumanEx Culture Survey

What did it tell us about the big picture of KRESA?

KRESA : Full Company– (n=329)

KRESA : Full Company-by Dimension

KRESA : Full Company–Top Items

Top 5 Rank Ordered By Mean DimensionCurrent

MeanVote/ Goal

4. I feel great pride in the work I do. Pride 4.62

2. I am fully engaged in the work that I do. Engage-Inspire 4.59

1. In my role I have the opportunity to do things that I both do well and enjoy.

Talent/Fit 4.54

53. I am committed to the success of my organization.

Engage-Inspire 4.50

16. I am continuously seeking ways to improve my overall productivity.

Innovation 4.47

KRESA : Full Company–Bottom Items

Bottom 5 Rank Ordered By Mean DimensionCurrent

MeanVote/ Goal

65. I feel “in on things” that are happening at KRESA.

Communication 3.36

31. I am provided personal coaching from my administrator/supervisor.

Relationships 3.37

9. I have received meaningful recognition in the past 10 days.

Recognition 3.42

61. KRESA has a genuine concern and interest about me as a person.

Relationships 3.47

40. In the past three months, my administrator/supervisor has discussed my successes and progress with me.

Performance Planning 3.47

Contact informationDave Campbell, Superintendent (dcampbell@kresa.org)Holly Norman, Deputy Superintendent (hnorman@kresa.org)

&Questions Answers