Duval County Public Schools

Functional and Financial Review

Results and Recommendations

 Financial & Functional Review

Goals of Session
• 2011-12 Budget Forecast
• Functional and Financial Review
process
• Impacts of the budget reduction
considerations
• Next steps

February 22, 2011 2

 Financial & Functional Review

Agenda
• Background
• Purpose and Methodology
• Employee Feedback
• Results & Reduction Considerations
• Next Steps
• Conclusion
  February 22, 2011 3
 Financial & Functional Review

Background
• Florida Law requires a
balanced budget
• DCPS Budget Challenges
• Funding Sources
• History of success
 

February 22, 2011 4

 Financial & Functional Review
2011 – 2012 Assumptions
Revenue

• Shortfall for 2012 is estimated at

$97 million
– ARRA Stimulus funds eliminated
– ¼ Mill Critical Needs Operating tax
referendum not levied

February 22, 2011 5

 Financial & Functional Review
2011 – 2012 Assumptions
Appropriation
• 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
February 22, 2011 6
 Financial & Functional Review
Budget 2011-2012 Fiscal Year
Revenue Information
2010 – 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 Information
Fixed 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

February 22, 2011 7

 Functional & Financial Review
Project Goals
Problem Statement
How 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 Goal
Identify and implement cost reduction initiatives
that would meet the projected budget shortfall,
while maintaining current strategic direction.
February 22, 2011 8
 Functional & Financial Review
This comprehensive review process was conducted to identify,
analyze, and prioritize possible reductions initiatives
Functional and Financial Review Process
Department

Prepare Financial Distribute financial

Budget

Template for templates to

Departments department heads

Develop and Submit review

Department

update packages to
Head

organization charts Review team prior

and complete to scheduled
financial templates review sessions

Review Team Review Team

Review Team

Department Heads
discusses and Review Team accepts or
review
evaluates list of prioritizes Surveyed all Summarize modifies Impact
organization
departmental reduction employees responses team findings and
information for
reduction initiatives recommendation
review team
initiatives based on facts
Impact Team

Impact team Impact Team

Department head assigns reduction Impact Team accepts or
presents reduction initiatives to work assesses work modifies work
initiatives to teams comprised team findings and team findings and
Impact Team of Subject Matter recommendations recommendation
Experts based on facts
Work Team

Department heads
and work teams
Work teams make
meet and
implementation
determine the net
recommendations
impact of reduction
initiatives

February 22, 2011 9

 Functional & Financial Review
District Organizational View
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.
Administrative Services Instructional Program Operational Support
Academics Department Programs
• School Board office • Clusters  Finance Service/Budget
• Superintendent’s office oElementary Schools  Information Technology
• Communication oSecondary Schools  Transportation
• Community & Family oElementary Turnaround  School Choice
Engagement Schools  Risk Management/Health
• Equity and Inclusion oSecondary Turnaround Schools  Security
• Intergovernmental Affairs • High School Programs  Custodial
• Human Resources & Kelly • Exceptional Education and  Maintenance
Services Special Services  Warehousing/Logistics
• Multiple Pathways and Support  Design/Construction/Planning
Services
• Curriculum and Instruction /
Professional Development
• Instructional Research &
Accountability / Research and
Development
• Grants

February 22, 2011 10

 Functional & Financial Review
Review Schedule – Review Team
12 Review Team meetings, 14 Impact Team meetings and multiple Impact
Assessment meetings were conducted to complete this process.
Date Sessions Functional Review Areas
October 6 / Wednesday
th
Planning
October 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-up

February 22, 2011 11

 Functional & Financial Review

• High Benefit • High Benefit

All proposed • Minimal difficulties • Maximum difficulties
initiatives
to implement to implement
were
prioritized
using this
Impact
Assessment
Mapping tool
• Low Benefit • Low Benefit
• Minimal difficulties • Maximum difficulties
to implement to implement

February 22, 2011 12

 Functional & Financial Review
REDUCTION INITIATIVE IMPACT FORM

Initiative ID: ES 1 Date Assigned – 11/03/2010 Priority – 3 / H

List of Disadvantages (cons) for implementation
Initiative Name: Explore the possibility of moving some of the EE/SS School Psychologists from 12
month to 10 month contracts. 1. Critical attention that federal mandates, (i.e., 60-Day Compliance for evaluations) is not negatively
impacted. Federal sanctions apply.
Initiative Leader: Ken Sutton Department/Area: Exceptional Student Education
2. Decisions on 10/12 contracts could create a major disruption of staff assignments, work locations,
redirection of job responsibilities, etc.

Description of Reduction Initiative 3.

Explore the possibility of moving some of the EE/SS School Psychologists from 12 month to 10 month Do you recommend this initiative? Yes/No __YES_____
contracts.
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 ____________

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.

The impact of
Major Challenges that could prevent or delay Implementation each
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 proposed
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
initiative was
financial benefit. documented
Impacted Area
on an Impact
1.EE/SS 2.Budget
Review form
3.HR 4.
5. 6.

Example
List of Advantages (pros) for implementation

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

2.

3.
February 22, 2011 13
 Financial & Functional Review
Employee Suggestions
961 Employee Suggestions

505

172

82 88
34 16 27 26
13

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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.
February 22, 2011 14
 Financial & Functional Review
Employee Suggestions
Category Summary of Comments
Academic 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

February 22, 2011 15

 Financial & Functional Review
Employee Suggestions
Category Summary of Comments
Operations • Initiate a Management Cost Improvement Program
• Restrict schools to 1 copier per location
• Reduce the amount of paper used throughout the
entire system
School 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 cost
Transportation • Eliminate after school activity buses

February 22, 2011 16

 Financial & Functional Review
Employee Suggestions
Category Summary of Comments
Employee Benefits • Allow employees to opt out of health insurance
• Allow retired teachers to return to the classroom as
contract teachers
• Allow for early retirement
Communication and • Reduce the amount of dollars to air Board meeting
Family Involvement • Secure more corporate sponsorships to fund special
activities and events
Business 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

February 22, 2011 17

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

Communication & CFE 4 212,163

Operations 67 17,078,061
Academic 66 12,326,026
Human Resources 7 1,028,990
Total 144 30,645,240

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

Total Researching 5 217,000

February 22, 2011 18
 Financial & Functional Review
Reduction Considerations by Organizational Units
Human Resources Vicki Reynolds
Walter Carr
Communication / Community and Jill Johnson
Family Engagement
 
Operations Doug Ayars Mike Perrone
Paul Soares Steven Bright
Sally Hague
Terri Stahlman

Academic Services Pat Willis Debbie Menard

Kathy Leroy Tony Bellamy
Dana Kriznar Jackie Byrd
Lawrence Dennis Ken Sutton
Elaine Mann
Tim Ballentine

The Detail Budget Reduction Considerations Worksheet is attached

February 22, 2011 19

 Financial & Functional Review
Additional Considerations
If all $17.7 million of the reductions discussed were realized, a budget shortfall of
$79.3 million still exists.
Initiatives Description
Furlough all DCPS The estimated cost saving to furlough all employees
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 Reduce school based allocation by 1% for all schools.

school funds • Elementary $3,050 per FTE ≈ $70K students
• Middle $2,977 per FTE≈ $30k students
• High $2,744 per FTE≈ $40K students
1% across the board reductions is about $4.1 million

February 22, 2011 20

 Financial & Functional Review
Budget Time Line
Oct. 1 – Feb 22 Functional and Financial Review Process
Feb. 23 Budget Guidelines are distributed to divisions
Feb 24 – March 3 Division Budgets are prepared
April 19 School Guidelines are distributed
April 26 – May 10 School Budgets are prepared
May 6 Legislature Adjourns
May 11 Legislative Appropriation received
June 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.

February 22, 2011 21

 Financial & Functional Review
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

February 22, 2011 22

 Financial & Functional Review
Next Steps
– Direction on negotiable items discussed earlier

February 22, 2011 23