Grosse Pointe Public School System

Financial Transparency Series

2010-11 BUDGET DRAFT #2

(UNABRIDGED)

MARCH 22, 2010

 Budget Development - Completed Activities
Date
(all discussions, presentations were televised sessions)
Board agreed on Staff Utilization and Allocation process for 2010-11 September
Board discussed Administration’s completed Distribution and Funding
October
Sources tabs of current year (2009-10) Staff Utilization Utility
Board discussed Administration’s recommendations for how to
increase density in electives/specials at all levels and completed November
Utilization tab of Staff Utilization Utility
Board discussed Administration’s evaluation of current utilization rates
November
of all job functions and propose utilization rates for 2010-11
Board discussed Administration’s recommendation for class size
November
guidelines and any special program designations for 2010-11
Board discussed Administration’s first 2010-11 budget projection
December
using the Budget Modeling Utility
Board Work Session on Budget Development Parameters January
Board discussed and approved Budget Development Parameters at
January
Regular Meeting
Presentation, Discussion of Budget Draft #1 at Regular Board Meeting February

Presentation, Discussion of Budget Draft #2 at Regular Board Meeting March

2
 Budget Development - Pending Activities
Date
(all will be televised sessions)

Board of Education Work Session, review of Budget Draft #2 April

If necessary and pending Board, Community, Staff feedback,

April
deliver Revised Balanced Budgets at Regular Board Meeting
Administration proposes Staff Layoff lists for Board approval
April
(agreement on staff call back procedure)

If necessary and pending Board, Community, Staff feedback,

May
deliver Revised Balanced Budgets at Regular Board Meeting
If necessary and pending Board, Community, Staff feedback,
June
deliver Revised Balanced Budgets at Regular Board Meeting
Budget Hearing and Board of Education Budget approval June
Update on enrollment and funding against projections July
Recommendation for approval of any staff call backs August

3
 Budget Draft #2
What It Is What It Is Not
•A Draft •A Proposal
•Work In Process •In a Final State

4
 Revenue and Expense Assumptions
No Changes in assumptions from Draft #1
5

REVENUE EXPENSES
Account for structural loss of revenue Increase in the state mandated retirement
from mid-year 2009-10 cuts to the rate from 16.94% to 19.41% - a cost
Foundation Allowance ($165 per pupil) increase of $1.6MM
$1.4MM
Account for structural loss of revenue District employee health care costs are
from elimination of Section 20J Funds expected to increase by 5% resulting in a
($198 per pupil) $1.6MM cost increase of $0.5MM
Blended enrollment will fall by 118 Employee salaries and other direct
students, reducing revenue by $1.2MM compensation will increase on account of
existing contracts - $1.0MM
Assumes NO CHANGE in Foundation Allowance for 2010-11 based on latest
Granholm proposal – an admittedly dangerous assumption.
TOTAL FINANCIAL IMPACT: $7.3MM
 Most Significant Changes from Draft #1 to Draft #2
Restores 3 Reading Specialists at Elementary for a total of 8.0 ( a
reduction of 1.0 from 2009-10)
Restores 4.5 Middle School teachers which reduces proposed
Class Size from 27.5 to 26
Restores 12.8 Hall Monitors (Middle and High School) as direct
employees as opposed to outsourcing them
Restores 7.0 Special Education Resource Room teachers for a
total of 27.0 (down 2 from 2009-10)
Restores 1.4 Speech Pathologists for a total of 16.9 for 2010-11
(down 2.6 from 2009-10)
Restores 2.2 Social Workers for a total of 8.7 for 2010-11 (down
0.8 from 2009-10)
Restorations offset by Draft #1’s surplus, health plan efficiencies,
moderate revenue increases and expense reductions, and a
broad range of smaller efficiencies

6
Projected Average Class Sizes – 2010-11
7

Lower Elementary •1st – 3rd – 22.0

Upper Elementary •4th – 5th – 22.9

Middle School •26

High School •27.6

 Employee Average Total Compensation
Average combined total Salary, Health Care, Retirement, FICA per Employee
8

2009-10 2010-11 % Change

Teachers $115,574 $120,058 3.9%

Classroom Assistants $39,221 $40,686 3.7%

Plant/Custodians $61,479 $64,643 5.1%

Clerical $57,548 $61,173 6.3%

Building Administration $163,540 $166,130 1.6%

Non-Instruction Supervisors $107,573 $110,442 2.7%

Paraprofessionals $44,725 $46,100 3.1%

Technology Staff $89,502 $90,939 1.6%

Executive Administration $197,742 $203,078 2.7%

 Evidence of an Unsustainable Financial Model
for the Grosse Pointe Public School System
9

Impact/
2007-8 2010-11
Observation
Foundation Allowance $10,326 $9,995 $2,600,000 revenue loss
and 20J Revenue/Pupil (3.2% reduction)
Student Enrollment 8,589 8,077 $5,117,000 revenue loss
General Fund Equity $20,355,960 $17,831,689 Decrease of 12.4%
Average Total $109,380 $120,058 $5,883,638 premium
Compensation/Teacher (9.8% increase/teacher)
Total Teachers 602 551 51 teachers fewer
Pupil:Teacher Ratio 14.27 14.66 Class Size, 6 period day
Total Employees 951 836 64 non-teachers fewer
Total Health Care, $25,314,818 $25,586,290 For 115 fewer employees
Retirement, FICA (15% increase/employee)
General, School Svc. Funds Total Revenues, Expenditures
2009-10 Projected Shortfall due to Mid-Year Cuts, 20J Loss
10

Budget Draft #2

2009-10 2010-11
Total Direct Compensation $62,233,760 $59,882,125
Health Care Expense $11,012,013 $9,520,624
MPSERS Expense $10,535,304 $11,507,612
FICA Expense $4,737,974 $4,558,074
Total Other Variable Expenses $15,748,031 $15,058,931
Total Expenditures $104,267,083 $100,527,347
Transfer to Debt Fund $684,000 $692,606
Total Expenditures and Transfers $104,951,083 $101,219,953
Total Revenues $102,536,331 $101,219,953
Net Annual Surplus / (Shortfall) ($2,414,752) $0
Enrollment Projections: No Change from Draft #1
Enrollment by Grade, Level, and Building Drive Staffing Levels
11

General Fund and School

Year Fall Enrollment
Services Fund Revenue (000’s)
2007-8 8,585 $108.4
2008-9 8,305 $107.2
2009-10 8,172 $102.5
2010-11 8,052 $101.0 (Projected)

2010-11 Enrollment By Level

Elem. Middle High Total
3,163 1,904 2,985 8,052

Class Size Guideline Applied Against Enrollment Derives Staffing

Elementary General Education Parameters
Expected Enrollment Reduction of 126 Students
12

• No class to exceed 27 students. Average

1st-3rd Grades class size substantially lower.

• No class to exceed 30 students. Average

4th-5th Grades class size substantially lower.

• Maintain Magnet, Trombly 1/2/3 Programs

Special Programs
• Replicate success of those programs

• District wide No-Fee All Day Kindergarten;

No Fee All Day
allow parents to select into a half-day
Kindergarten option (approved Feb. 22, 2010)
Elementary Class Sizes – 2009-10 School Year
13
Magnet;
1 2 3 4 5 1-2-3
Defer 17.3 20.3 20.0 22.7 24.3 20.0
Ferry 19.0 23.5 19.0 19.0 22.0 20.5
Kerby 18.7 22.7 22.0 22.0 25.0
Maire 19.3 21.0 25.5 20.0 19.0
Mason 21.5 24.0 20.0 22.0 23.0
Monteith 19.5 26.0 25.3 26.3 21.8
Poupard 18.3 19.3 23.3 23.0 18.7
Richard 21.0 23.0 24.3 22.0 24.0
Trombly 21.5 18.5 17.5 22.0 18.3 21.0

Traditional Teachers 135.0 1st-3rd Avg. Class 21.2

“Specials” Teachers 26.8 4th-5th Avg. Class 21.9
 Elementary Class Sizes – 2010-11
Without New Stack Programs (no change from draft #1)
14

Magnet;
1 2 3 4 5 1/2/3
Defer 26.0 25.5 27.0 21.0 21.7 20.0
Ferry 20.0 26.5 19.0 29.5 29.0 20.5
Kerby 26.0 18.3 22.3 22.5 22.3
Maire 24.0 18.7 21.3 25.5 20.7
Mason 17.5 19.5 22.5 21.0 19.5
Monteith 23.5 26.7 25.8 25.5 26.3
Poupard 17.0 26.5 20.3 23.0 22.3
Richard 22.3 21.7 23.3 24.7 22.7
Trombly 21.0 23.5 19.0 20.5 22.5 21.0

Traditional Teachers 122.0 1st-3rd Avg. Class 22.4

“Specials” Teachers 24.4 4th-5th Avg. Class 23.3
 Elementary: Stack/Loop Seed Program
15

 Previous class size averages do NOT force any

new stacked or looped class. All adhere to
parameters adopted.

 Budget allows for three targeted instances of an

opt-in, low enrollment stack/loop: (ex. Defer
1/2/3; Montieth 1/2/3; Ferry 4/5.
 Modeled after successful programs
 Mitigates risk of enrollment variances
 Would further reduce class size averages
 Elementary Class Sizes – 2010-11
With New Stack Programs (no change from Draft #1)
16

Magnet; New Stack

1 2 3 4 5 1/2/3 (examples)
Defer 23.5 23.0 24.5 21.0 21.7 20.0 15.0
Ferry 20.0 26.5 19.0 26.0 25.0 20.5 15.0
Kerby 26.0 18.3 22.3 22.5 22.3
Maire 24.0 18.7 21.3 25.5 20.7
Mason 17.5 19.5 22.5 21.0 19.5
Monteith 22.3 25.0 24.5 25.5 26.3 15.0
Poupard 17.0 26.5 20.3 23.0 22.3
Richard 22.3 21.7 23.3 24.7 22.7
Trombly 21.0 23.5 19.0 20.5 22.5 21.0
Traditional Teachers 125.0 1st-3rd Avg. Class 22.0

“Specials” Teachers 25.0 4th-5th Avg. Class 22.9

 Other Elementary Resources
Significant Change from Draft #1: Restores 3.0 Reading Specialists
17

2009-10 2010-11
Principals 9.0 9.0

Teacher – Title 1 2.9 2.9

Teacher – Reading Specialist 9.0 8.0

Classroom Asst – Computer/Lib. 18.0 9.0

Classroom Asst – Title 1 7.0 7.0

Classroom Asst – Magnet 1.0 0.0

Classroom Asst – Class Size 1.0 0.0

Classroom Asst – Extended Day K 7.0 0.0

Secretaries and Clerks 16.0 13.5

 Middle School General Education
2009-10 Budget Had Anticipated 27.5 Average
18

2009-10 Middle School Staffing Levels

Student Annual Avg. #
Schedule Total Sections Total
School Credits Course Students
Type Students Needed Teachers
Per Year Seats / Class

Brownell 632 6.00 7,584 24.6 308 30.8

Teachers
Parcells teach 5 691 6.00 8,292 24.8 334 33.4
of 6
Pierce periods 601 6.00 7,212 24.3 297 29.7

TOTAL 1,924 6.00 23,088 24.6 939 93.9

Special Education and Resource Center sections are NOT
factored into calculations.
 Middle School General Education
Significant Change from Draft #1: Restores 4.5 teachers
19

2010-11 Middle School – Staffing Projections

Annual
Student Avg. #
Schedule Total Course Sections Total
School Credits Students
Type Students Seats Needed Teachers
Per Year / Class
Required

Brownell 622 6.00 7,464 26 286 28.6

Teachers
Parcells teach 5 702 6.00 8,424 26 323 32.3
of 6
Pierce periods 580 6.00 6,960 26 267 26.7

TOTAL 1,904 6.00 22,848 26 876 87.6

Special Education and Resource Center sections are NOT
factored into calculations.
 High School General Education
2009-10 Budget Had Anticipated 27.5 Average
20

2009-10 High School Staffing Levels

Annual
Student Avg. #
Schedule Total Course Sections Total
School Credits Students
Type Students Seats Needed Teachers
Per Year / Class
Required

North 1,380 6.57 18,133 26.5 684 68.4

Teachers
South teach 5 of
7 periods 1,580 6.67 21,077 27.1 778 77.8

TOTAL 2,960 39,210 26.8 1,462 146.2

Tutorials, Special Education or Resource Center sections are NOT

factored into class size calculations.
 High School General Education
Change from Draft #1: Reduction of 0.5 Teachers
21

2010-11 High School – Staffing Projections

Annual
Student Avg. #
Schedule Total Course Sections Total
School Credits Students
Type Students Seats Needed Teachers
Per Year / Class
Required

North 1,391 6.57 18,278 27.6 662 66.2

Teachers
teach 5 of
South 7 periods 1,594 6.67 21,264 27.6 770 77.0

TOTAL 2,985 39,542 27.6 1,432 143.3

Tutorials, Special Education or Resource Center sections are NOT

factored into class size calculations.
 Other Secondary Level Resources
Significant Change from Draft #1: Restores Hall Monitors as Direct District Employees

22

2009-10 2010-11
Principals / Asst. Principals 14.0 14.0
Teacher - Librarian 3.5 3.5
Teacher - Counselor 16.0 16.0
Classroom Asst –
11.0 9.5
Computer/Library/Student Center
Parapro – Musical and Other 7.6 7.6
Classroom Asst. – Hall Monitor 12.8 12.8

Classroom Asst. – Parking Lot Attendant 2.0 0.0

Contracted – Parking Lot Attendant 2.0 4.0

Secretaries and Clerks 25.0 19.5
 Special Education Teachers
Year Over Year Comparison - 2009-10 to 2010-11
23

2009-10 FTE’s 2010-11 FTE’s

Resource Center – Elementary 9.0 8.0

Resource Center – Secondary 20.0 19.0

Teachers - Speech Therapist 18.9 16.3

Teachers - Cognitive Impaired 7.4 7.0

Teachers - Emotional Impaired 5.0 4.0

Teachers - Early Childhood Developmental Delay 4.0 3.5

School Psychologists 10.8 10.0

School Social Workers 9.5 8.7

High School Math Support 0.2 0

 Special Education Teachers - 2010-11
Significant Change from Draft #1: Restores 10.6 Teachers
24

Role FTE Role FTE

Autism Spectrum 23.0 Program Specialist 1.0

Cognitive Impaired 7.0 English as Second Lang. 0.8

Emotional Impaired 4.0 Transition 3.0

Early Childhood Dev. Delay 3.5 Occupational Therapist 3.0

Resource Center
27.0 Behavioral Specialist 0.8
*Includes 2.0 Learning Support Pilot Program
Psychologist
9.8 Autism Spectrum Consultant 2.0
*Includes.5 District Magnet Program
Social Workers 8.7 Visual Impaired Consultant .8
Speech Therapist
16.3 Hearing Impaired Consultant 1.0
*Includes.7 Speech Pilot Program
Teachers - Release Time 4.0 Learning Disability Consultant 1.0
Special Education Classroom Assistants
25

2009-10 2010-11
Class. Asst - Mod. Cognitive Imp. 9.0 7.0
Class. Asst - Mild Cognitive Imp. 3.0 3.0
Class. Asst - Autism Spectrum 45.5 45.5
Class. Asst - Emotion. Imp. 7.0 7.0
Class. Asst - Resource Room 7.0 7.0
Class. Asst - Early Child Dev 3.0 3.0
Class. Asst - Work Study/Vocation. 3.0 3.0
Special Education Administration and Support
26

2009-10 2010-11
Director 1.0
Associate Director 2.0 1.0
Secretaries and Clerks 4.6 4.6
 Central Administration and Services
27

2009-10 2010-11
Executive Administration 5.0 5.0
Secretaries 6.6 3.9
Clerical Staff 6.0 4.6
Teachers - Specialists 4.4 2.7
Non-Instructional Supervisor 18.0 11.7
Contracted - Non-Instructional 0.0 3.6
Paraprofessional - Other 0.5 0.5
Technology Support 7.0 7.0
Plant - Custodians/Engineers 76.0 68.0
Community Relations 1.0 1.0
 Staffing Level Changes 2009-10 2010-11
Teachers - Elementary 192.5 181.9
Teachers – Middle School 101.4 95.1
Teachers – High School 157.8 155.3
Teachers – Special Education 123.4 116.0
Teachers – Specialists 3.9 2.7
Classroom Asst. – General Ed. 58.1 38.3
Classroom Asst. – Special Ed. 77.5 75.5
Building Administrators 25.0 25.0
Clerical Staff 58.2 46.1
Non-Instructional Supervisor 17.9 11.7
Paraprofessionals 11.7 8.0
Plant Engineers / Custodians 76.0 68.0
Technology Staff 7.0 7.0
Executive Administration 5.0 5.0
TOTALS 915.4 835.7

28
 Purchased Services
Increase in Contracted Staff as Some Direct Employees Shifted
29

2009-10 2010-11
Contracted Staff and Substitutes (Non-Coach) $1,555,929 $1,611,835
Transportation (Non-Athletic) $590,412 $610,000
Water $200,000 $210,000
WAN and Telecommunications $274,000 $265,104
Property Insurance $273,000 $273,000
Audit/Student Legal $54,000 $54,000
Legal $256,000 $256,000
Repairs and Maintenance $1,840,902 $1,740,030
Wayne RESA Fees $209,500 $209,500
Software Licenses $343,210 $460,000
Other (includes Fast Math/Reading) $60,952 $60,592
School Services Fund - Food $1,167,733 $1,167,733
TOTAL PURCHASED SERVICES $6,825,638 $6,917,794
 Supplies Expenses
30

2009-10 2010-11
Gas $1,013,000 $1,013,000
Electricity $1,140,000 $1,140,000
Textbooks $325,000 $325,000
Custodial Supplies $586,000 $586,000
Teaching Supplies $803,000 $760,230
Office Supplies $224,661 $224,661
Athletics - Non-Coach Expenses $475,793 $474,135
Other (including Library Books) $51,000 $47,500
Other (School Services Fund) $17,285 $17,285

Supplies Total $4,635,739 $4,583,140

 Other Variable Human Resources Expenses
31

2009-10 2010-11
Workers Compensation $139,000 $139,000
Unemployment $300,000 $780,000
Summer School $38,600 $34,600
Summer Building Maintenance $30,000 $26,100
All Day Kindergarten Lunch Help $18,563
Kids Club/Preschool $471,265 $471,265
Camp O'Fun Summer Help $32,000 $28,500
PAC Student Support $111,002 $100,000
Other HR $20,000 $20,000
Temporary Help $67,860 $61,250
Extended School Year - Spec. Ed. $101,000 $92,600
Total Other Variable HR $1,310,727 $1,522,011
 High School Athletics Budget
32

2009-10 2010-11
Coaches $702,469 $696,200
Transportation $125,033 $117,555
Other Athletic EPED $29,500 $62,000
Trainers $60,000 $60,000
Officials $85,297 $84,467
Capital Outlay $19,325 $0
Consumable Expenses $77,485 $82,250
Contract Services $13,300 $8,500
Uniforms $42,500 $26,300
State Tournament Expenses $17,513 $16,546
Dues, Fees and Ice Time $130,873 $134,072
TOTAL $1,303,295 $1,287,890

% of General / School Services Fund Revenue 1.42% 1.42%

 Non-Athletic Extra Pay for Extra Duty
Alternative to Building Administrator Reduction
33

2009-10 2010-11
Department Chair EPED $220,094 $0
All Other EPED $553,788 $553,788
TOTAL $773,882 $553,788

Shifts workload from teaching staff to building administration and

reduces cost by $220,094 – equivalent to 1.35 Asst. Principals.

No Student clubs or organizations would be affected or reduced.

Human Resources vs. Non-HR Costs as % of Total Budget
The “Roll Forward” is if no changes would be made from 2009-10
34
100%
16.4% 15.3% 15.2% 13.6% 14.9%
80%

60%

40% 82.6% 84.0% 85.1% 85.7% 84.4%

20%

0%

2007-8 2008-9 2009-10 2010-11 2010-11

“Roll Fwd.” Draft #2
Human Resources Non-Human Resources
 Variability of Budget Assumptions
35

Each of these variables individually would amount

to roughly 1% of the Budget:

$100MM
1.8% in
100 Budget employee
students
salaries

1.5%
$123 in
10% in change in
per pupil
health care MPSERS
funding
costs rate

Financial Transparency Series - Fund Equity

 Variability of Budget Assumptions
36

This combination of variables would amount to

roughly 1% of the Budget:

$100MM
0.25% in
20 Budget employee
students
salaries

0.5%
$25 in per
change in
pupil 2% in health
MPSERS
funding care costs
rate

Financial Transparency Series - Fund Equity

Updates on Specific Areas of Focus Identified in
Budget Draft #1
37

Supplies, Purchased
Services, and Other HR
• Identified significant reduction

Elementary Reading
Specialists
• Restored 3.0 for a total of 8.0

Resource Center • Restored 9.0 positions (27 total)

Bargaining Unit
Contracts
• In bargaining process with all
2010-11 Budget Process: Closing Thoughts
38

Analyze &
Communicate Get Feedback
Evaluate

Monitor Contribute Holistic

Variables Constructively Amendments

Budget Work Session in April. Budget Recommendation to be

Presented in April. Final approval not until June