Does the Ohio Education Association Care about Springboro?

On Wednesday, a spokesman from the Ohio Education Association (OEA) announced that the Springboro Teachers Union voted to give the authority to their 5-person executive committee to give 10 day notice of the Springboro Teachers Union intent to strike. Why is the OEA standing in the way of negotiations in Springboro? Visit http://www.springboro.org for current negotiation information, the fiscal impact of accepting the OEA contract, and more. Stay informed, at http://www.springboro.org.

Children First Budgeting Works!!

On May 23, 2013, the Board of Education Unanimously adopted the recommendations of the Budget & Finance Committee. A budget that invests in our children’s education. To the best of my knowledge, never in the history of Springboro Community City Schools has so much been done without the need to raise taxes.

I encourage you to pass this message along to all of your friends and family. Please share this blog site with everyone, no matter what side of an issue they stand. It is time to rally for our children of this school district, it is time to rally behind our graduates that leave our care on June 1, and it is time to rally behind all of the success this year, such as maintaining an Excellent with Distinction !!!! Much work has been done, and each time, our team achieve their mission – they deliver!

Here is the entire message presented to the Board and our entire community. Please ask the Springboro School Treasurer, Tracy Jarvis (tjarvis@springboro.org) for a copy of the 5-year forecast and assumptions and thank you for taking the time and consideration.

Budget & Finance Committee May 2013 5-year Forecast Recommendation & Comments

David Petroni, Chairman of the Budget and Finance Committee.

May 23, 2013

By unanimous vote, the Board of Education established and authorized the Budget and Finance Committee to review all matters of forecasting and finance. A 5-year forecast and set of assumptions are required to be updated twice a year per the Ohio Department of Education. It is within this authority and process that district finances are evaluated and vetted. In Springboro, the May forecast is used by the administration and board as the next fiscal year’s operating budget, which begins July 1, 2013. This committee of the board only makes recommendations. The recommendations are then presented to the full board for their deliberation and approval.

Tonight, the committee is pleased to present a budget and 5-year forecast that offers respect to the taxpayer and employee, is transparent to everyone, and is, at its core, child centric. This forecast is investing at unprecedented levels in curriculum and tools for educators, while remaining fiscally responsible. The forecast also recognizes the uncertainty about ongoing negotiations with the Ohio Education Association, potential revenue increases provided in the Governors new budget, and the risks associated with asking the community to support a levy. Changes to any of these three areas can impact the projected fund balance in either negative or positive ways.

With those aforementioned caveats in mind, this forecast and its accompanying assumptions establish policies of the board that in recent history have not been accomplished without attempting to raise taxes. Like in both forecasts adopted in 2012, this budget does not need new taxes.

The goals and investments of the budget are targeted & measured, and timed to fit within available resources. This fiscal management philosophy is to assure everyone in Springboro clearly understands that the district is diligently working to live within the currently approved tax revenues.

Naturally, every school district in Ohio claims that children are their first priority. Today in Springboro, we not only claim it, we own the naming rights! The adoption of this forecast is the evidence that public education is fully supported in Springboro by this Board of Education. The proof is in the fact that we are investing heavily in our infrastructure, both physical and technical, in our curriculum, and the safety of our children and staff, while recognizing employee concerns that will remain open until completion of negotiations.

Since instituting child centric investment policies last year, the results are remarkably visible. Putting our children’s education first is good policy, it is good for public education, it is good for professional educators, it is good for our students for it WILL continue to help attract the best and the brightest teachers. As outlined and conditioned in the assumptions, this district has never been on firmer financial ground.

There are a few noteworthy changes since our October 2012 forecast in board policy, revenues, and expenditures as follows:

1. The Rocky Express Revenue collected will increase $2.4 million thru 2017. This is not a tax increase on our community, it is an intangible tax on the public utility.

2. Like in 2010/ 2011, the board again offered an early retirement incentive plan for all employees which is projected to reduce expenses by $1.266 million in salary and benefits. 34 employees took this early retirement incentive, which will pay them each up to $40,000 over a fixed term.

3. The board approved Mr. Petrey’s plan to start preschool next school year that will increase Personal Services (Salaries) and benefits and reduce Purchased services (previous preschool contract). The plan projects to capture a slight expense reduction thru 2017. There may be additional money for preschool and gifted services in the Governors budget. Since the State budget process will not be completed until June 30, nothing has been projected.

4. Mr. Petrey presented an efficiency plan to the board that is projected to be net – neutral in cost. This plan re-allocates resources based on student achievement data. The administration demonstrated to the board it is possible to manage existing resources by shifting them to address defined gaps. This is projected to be at no additional cost while improving the quality public education and the high standards expected of Springboro Schools.

5. The combining of our elementary school buildings this year accounts for an approximate $150,000 in savings thru 2017. Due to the efficiencies of operating Dennis and Five Points as one separate but unified building, it allowed the administration to balance class sizes and maintain current staffing levels for the next school year.

6. To the best of my knowledge, for the first time in Springboro’s history, a comprehensive capital improvement plan identified $5.8 million in capital needs and deferred maintenance. This plan is recommended to be funded at approximately 50%. Based on projected tax revenue last year, This year, based on updated revenue projections, the committee is adopting the administration’s recommendation to increase this spending by approximately $1.3 million to a total cost of $3.7 which will be spread throughout this forecast. The residual balance of $2.1 million has been identified as an unmet need and shall remain a goal of the district if we are to adequately maintain our facilities. Immediate and full funding of this plan would reduce the projected fund balance (Line 12.010)

7. Project 21, the district technology investment plan, is a $1.3 million initiative and a model for others to follow. The technology plan created by our tech department outlines a long-term investment program that provides tools for our teachers and creates a 21st century learning environment for our children in every classroom. This plan purchases over 1,100 computers, and assures every building in our district has Wi-Fi capability to support the expansion of bring your own technology (BYOT) program. The investment is also designed to meet the on line testing required by the State’s adoption of the Common Core Standards.

8. Over $2 million will be invested in a transportation plan to assure our parents their children will be safe traveling to and from our schools and while in our care traveling to extra curricular events throughout the year. The plan proposes to replace 21 buses thru 2017. 11 buses were purchased today through the utilization of tax-exempt bonds, which also allowed Moody’s to re-evaluate our bond ratings. Moody’s findings are included at the end of the assumptions in total.

9. In August of 2010, that board authorized investing $2.470 million in new textbooks and new textbook adoptions. To date $600,000 has been spent. The forecast includes the remaining $1.8 million. An additional $600,000 has been identified as an unmet need based on the curriculum department’s recommendation.

10. There have been reports out of Columbus stating Springboro may receive 6%, or approximately $1.8 million more in foundation money under the budget bill. Until the budget process concludes, no increase in revenue has been projected. Counting your chickens before the eggs hatch is never sound thinking.

Let me pause here for just a moment to celebrate all of this success.

It would be an understatement to say that these are exciting times for our children, teachers, and our entire community.

Fiscally speaking, the district budget has been built to meet the needs of our students, supporting our teachers, while showing deference and respect to the taxpayers who have continued their support of public education in Springboro. How we treat our children today will determine how this community treats our district.

Open items that require more diligence, discussion, and study are pay to participate, our relationship with all our support organizations that surround extra curricular programs, student enrollment trends, housing growth trends, employee contract negotiations, and specific plan development for several noted unmet needs.

The unmet needs list if fully funded would reduce our current projected surplus fund balance. These are wants that are not currently prioritized into the annual spending plan until such time revenue projections support the additional investments because quite frankly, rational and responsible choices must be made in determining the allocation of scarce resources. We are not the federal government, who can print money whenever the need arise, we are constrained by the revenue the taxpayers of the school district provide us.

A critical component of this forecast is the inclusion of $9.2 million from the expiration of an emergency levy established 5 years ago. Since May of 2012, the revenue from this levy has been included in the assumptions and fund balance. We pray the taxpayers accept our recommendation and the research performed that went into its making.

Based on this forecast and specifics defined by each assumption, the committee is recommending placing a levy on the November 2013 ballot with the amount not to exceed the $9.2 million the district will lose when the previous emergency levy expires.

The first deadline for making the November ballot is August 2, 2013. It is our hope that the caveats and uncertainties in our budget forecast will be clarified by that time.

In summary, the budget presented reflects an increase in our district fund balance from $5.8 million to $7.2. I wish to thank the administration and all of our staff for their hard work and accomplishments of the past year.

The $7.2 million net fund balance includes the passage of the $9.2 million levy and excludes the $1 mm board emergency reserve (forecast line 12.010). Based on advise from our legal counsel, the assumptions around compensation and benefits remain consistent with no change to specific employee concerns until mutual agreement is reached through the negotiation process. This process should be permitted to reach it terminus before any actions are taken.

This 5-year forecast has been developed in the sunshine in open meetings duly attended by the public; the budget expenditures have been aligned with our revenues; it is transparent to the EVERYONE, and it shows respect to the taxpayers of this district who have supported Springboro Schools for decades.

If the children are our community’s first priority, then the philosophy of Children First Budgeting makes sense. It creates plans and prioritizes spending so that the things most important to education and student achievement are funded first. It does not allow one budget item to absorb so much that other critical items are left wanting.

The one unifying principal we all profess is that ” it’s about the children”. If that is indeed true, then let us set aside partisan difference, and rally for the education of our children, because the children must be our first priority!

In closing, it is the committee’s recommendation that the board accept the financial forecast and assumptions as presented for submission to the Ohio Department of Education.