1. Supt. Report to NSSD March 11, 2011 SHS Auditorium

2. Purpose of Today Present updated NSSD District and School Board Goals Present updated NSSD District and School Board Goals Superintendent Goals 2011-12 Superintendent Goals 2011-12 Discuss current budget situation of NSSD Discuss current budget situation of NSSD

3. District Goals 2009-12 Ensure that Every Student Achieves Measurable Progress and Personal Growth Each Year Ensure that Every Student Achieves Measurable Progress and Personal Growth Each Year Provide the Best Facilities and Learning Environment Provide the Best Facilities and Learning Environment Involve the Community in our Schools to Maintain the Public Trust Involve the Community in our Schools to Maintain the Public Trust Be Viewed by the Community as a Unified District Be Viewed by the Community as a Unified District

4. Board Goals 2011-12 Maintain programs in a sustainable way, while striving to keep as many people employed as possible, because of our commitment to doing what is best for kids Maintain programs in a sustainable way, while striving to keep as many people employed as possible, because of our commitment to doing what is best for kids Celebrate the successes of the District and community Celebrate the successes of the District and community Routinely monitor the effectiveness of District programs and services in order to better serve kids Routinely monitor the effectiveness of District programs and services in order to better serve kids

5. Superintendent Goals 2011-12 Immediate Goal: Adopt a budget for 2011-12 that preserves core District functions and allows for a strong and sustainable educational system which strikes a balance between measurable student progress in core subjects and preserves as comprehensive a program as possible. Adopt a budget for 2011-12 that preserves core District functions and allows for a strong and sustainable educational system which strikes a balance between measurable student progress in core subjects and preserves as comprehensive a program as possible.

6. Immediate Goal contd What Im shooting for: What Im shooting for: As comprehensive a program as possible As comprehensive a program as possible As full a school year as possible As full a school year as possible Helps employees, gets us to our true costs (the first step in sustainability), and is a measuring stick in the community Helps employees, gets us to our true costs (the first step in sustainability), and is a measuring stick in the community Unallocated ending fund balance of $600,000 Unallocated ending fund balance of $600,000 A leaner budget without padding will require this because of our cash accounting system A leaner budget without padding will require this because of our cash accounting system We must have cash available to meet our payroll until property taxes come in in November We must have cash available to meet our payroll until property taxes come in in November Sustainable funding level over the 2011-13 biennium and beyond Sustainable funding level over the 2011-13 biennium and beyond Note: this list represents objectives in a general sense. There will be trade-offs Note: this list represents objectives in a general sense. There will be trade-offs

7. Superintendent Goals 2011-12 Intermediate Goal: Adopt a 10-year Long Range Master Facilities Plan that meets the minimum requirements of ORS 195.110 through a process committee, which will involve community members and district personnel Adopt a 10-year Long Range Master Facilities Plan that meets the minimum requirements of ORS 195.110 through a process committee, which will involve community members and district personnel Plan will cover 15-20 years Plan will cover 15-20 years All stakeholders present in balanced numbers All stakeholders present in balanced numbers (parents, staff, community members with no ties to school) Will begin process in September 2011 Will begin process in September 2011 Interested? Contact me Interested? Contact me

8. Superintendent Goals 2011-12 Intermediate Goal: Adopt Community Schools Approach for NSSD Schools Indicates our commitment to better link with our families and other community resources Indicates our commitment to better link with our families and other community resources We want to: We want to: Look for opportunities to extend the school day for further learning or enrichment Look for opportunities to extend the school day for further learning or enrichment Look for opportunities to extend the school year Look for opportunities to extend the school year Look for opportunities to partner with other government agencies who serve our families Look for opportunities to partner with other government agencies who serve our families Create opportunities for adult learning in our schools Create opportunities for adult learning in our schools Staff ideas and initiatives are welcome ~This is an area of opportunity for funding (grants) and to engage community and get them in buildings

9. Superintendent Goals 2011-12 Building Goal: Each building will further implement Response to Intervention/EBISS System Each building will further implement Response to Intervention/EBISS System Long-Term Goal: Five Outstanding Schools within the NSSD that create future citizens, parents and an educated work force that contribute to our communities Five Outstanding Schools within the NSSD that create future citizens, parents and an educated work force that contribute to our communities

10. Budget Oregon Economic Forecast March 2011 (Office of Economic Analysis) Oregon Economic Forecast March 2011 (Office of Economic Analysis) Improvement in job growth, but still weak compared to other recoveries Improvement in job growth, but still weak compared to other recoveries Risks to forecast Risks to forecast Downside: Fuel costs, housing industry drags economy Downside: Fuel costs, housing industry drags economy Upside: possible increase in consumer confidence and spending could lead to greater employment growth than projected; Stronger demand for Oregons business products nationally and internationally create more hiring than anticipated Upside: possible increase in consumer confidence and spending could lead to greater employment growth than projected; Stronger demand for Oregons business products nationally and internationally create more hiring than anticipated Upside risks exist because of Oregons Income Tax Kicker Law that requires that if revenues exceed projections by 2% then it must be refunded to taxpayers Upside risks exist because of Oregons Income Tax Kicker Law that requires that if revenues exceed projections by 2% then it must be refunded to taxpayers Overall: employment will rise slowly in 2011 before picking up steam in 2012 Overall: employment will rise slowly in 2011 before picking up steam in 2012

11. Budget Long-term threats to K-12 school funding in the State Long-term threats to K-12 school funding in the State Drop in real estate market values may lead to assessed value declines and lost property tax revenue (currently approx. $4.7 million to NSSD) Drop in real estate market values may lead to assessed value declines and lost property tax revenue (currently approx. $4.7 million to NSSD) Projected PERS increases in future biennium (s) ~Our payments to PERS will increase next year by $580,000 to just over $2,000,000; Costs anticipated to rise slowly through 2017-18, then accelerate Projected PERS increases in future biennium (s) ~Our payments to PERS will increase next year by $580,000 to just over $2,000,000; Costs anticipated to rise slowly through 2017-18, then accelerate Declining share of state general fund from 44% to 38% in last six years (Corrections, Adult and Family Services) Declining share of state general fund from 44% to 38% in last six years (Corrections, Adult and Family Services) Current NSSD income is $16.5 million (approx.) Current NSSD income is $16.5 million (approx.)

12. Budget Immediate Challenges for NSSD this year Immediate Challenges for NSSD this year NSSD has no cash reserves (last $600,000 allocated in 2009- 10 was the last unallocated reserve) NSSD has no cash reserves (last $600,000 allocated in 2009- 10 was the last unallocated reserve) Federal Stimulus goes away this year ($714,000 in this years budget) Federal Stimulus goes away this year ($714,000 in this years budget) $580,000 in increased PERS costs must be accounted for next year $580,000 in increased PERS costs must be accounted for next year Reliance on carryover in subsequent years budget Reliance on carryover in subsequent years budget No bills to increase revenue are currently under consideration in the Oregon Legislature or at the Federal Level No bills to increase revenue are currently under consideration in the Oregon Legislature or at the Federal Level

13. Budget How we have approached our spending this year How we have approached our spending this year 1. Save as much money as possible in the general fund to prepare for 2011-12 budget 2. Understand completely the impact and possibilities created by the loss of Stimulus Money (navigate different Federal and State Requirements for each pool of funds)essentially, how can these funds help us in the general fund? 3. No new staffwe have transferred to meet emerging needs (Green zone assistant time analysis) 4. 6 days for certified, confidential and administration, 2 days for classified

14. Budget Preparing next years budget We are reviewing all 300-600 budgets (equipment and supplies) We are reviewing all 300-600 budgets (equipment and supplies) – Estimate of savings we will create by the end of this year – What we can survive on next year – All departments and schools receive this scrutiny Identify every other fiscal option that can save money in the general fund Identify every other fiscal option that can save money in the general fund Roll grade cohorts forward and project necessary staffing levels for 2011-12 school year Roll grade cohorts forward and project necessary staffing levels for 2011-12 school year – We will clarify these in detail at building meetings in April/May

15. Budget Watching the legislature, planning for a funding level Watching the legislature, planning for a funding level Governors budget calls for $5.57 billion given to us 52% in 2011-12, 48% in 2012-13 Governors budget calls for $5.57 billion given to us 52% in 2011-12, 48% in 2012-13 ( Reminder: this year we are funded at $5.73 through the use of Stimulus) ( Reminder: this year we are funded at $5.73 through the use of Stimulus) House and Senate Ways and Means Budget set to come out in next two weeks House and Senate Ways and Means Budget set to come out in next two weeks

16. Budget We are working on three funding scenarios. The funding levels are $5.57, $5.65 and $5.7 billion We are working on three funding scenarios. The funding levels are $5.57, $5.65 and $5.7 billion We will look at all funding levels on a basis of 49% 2011-12, 51% 2012-13 We will look at all funding levels on a basis of 49% 2011-12, 51% 2012-13

17. Funding using 49%-51% Why will we use 49-51 split of funds instead of a 52-48 split Why will we use 49-51 split of funds instead of a 52-48 split A 52-48 split will result in an 8% cut in funds in the second year A 52-48 split will result in an 8% cut in funds in the second year The number already assumes some revenue increases in year two The number already assumes some revenue increases in year two We will need to anticipate costs rising in the second year, and a 49-51 allows for a 4% increase We will need to anticipate costs rising in the second year, and a 49-51 allows for a 4% increase

18. Budget Our current projected shortfall for 2011-12 Our current projected shortfall for 2011-12 Funding LevelShortfall $5.57 B$1.85 million $5.65 B$1.67 million $5.7 B$1.58 million Includes all costs for full school year Includes all costs for full school year Does not include current years savings or next years cuts. Does not include current years savings or next years cuts. Includes a $600,000 ending fund balance (cash system reserve) Includes a $600,000 ending fund balance (cash system reserve) Includes projected savings from teacher retirements, loss of SES VP, classified hourly cuts Includes projected savings from teacher retirements, loss of SES VP, classified hourly cuts Does not include possible fuel cost increases Does not include possible fuel cost increases

19. Budget April-May 2011: Budget Meetings in each school with staff April-May 2011: Budget Meetings in each school with staff Include our ending fund balance projection Include our ending fund balance projection Budget savings in 10-11 budget Budget savings in 10-11 budget Staffing levels by building Staffing levels by building Quarterly Revenue Forecast in May Quarterly Revenue Forecast in May May-June: NSSD Formal Budget Process May-June: NSSD Formal Budget Process June 30, 2011-We must by law adopt a budget June 30, 2011-We must by law adopt a budget

20. What we as a district can do Advocate for K-12 education to your legislators! Advocate for K-12 education to your legislators! Remind them that our share of the general fund has been in constant decline Remind them that our share of the general fund has been in constant decline April 15 go to the CapitolNo School April 15 go to the CapitolNo School Continue to give your great effort to save all that you can Continue to give your great effort to save all that you can Check out assumptions and ask questions of me Check out assumptions and ask questions of me

21. Thank you for the great work that you do! Questions or Comments?