1. Texas Budget Shortfall The Impact on Texas Public Education and NISD

2. Northwest ISD 15,537 Students 1,610 District Employees 1,390 Contract Employees Schools: 14 Elementary Schools 4 Middle Schools 3 High Schools Disciplinary Alternative Education Placement Denton Creek

3. Accountability Ratings Elementary Schools Samuel Beck Elementary School Kay Granger Elementary School Haslet Elementary School W.R. Hatfield Elementary School J. Lyndal Hughes Elementary School Justin Elementary School Lakeview Elementary School O.A. Peterson Elementary School Prairie View Elementary School Sendera Ranch Elementary School Seven Hills Elementary School Middle Schools Medlin Middle School TEA Exemplary Campuses Elementary Schools Clara Love Elementary School Sonny & Allegra Nance Elementary School Roanoke Elementary School Middle Schools Chisholm Trail Middle School Gene Pike Middle School High Schools Byron Nelson High School Northwest High School TEA Recognized Campuses

4. 2010 College Preparatory Honors SAT Scores 1009 NISD989 State1017 National National Merit Semi-Finalist - 1 Commended Scholars - 7 National Hispanic Scholars - 7 ACT Scores 22.5 NISD20.8 State 21 National

5. Budget Drivers Normal Cost Increases: –Additional Educators for Growth –Utilities –Transportation –Maintenance –Inflation factors

6. THE PROBLEM State budget outlook is a shortfall range anywhere from $12 billion to upwards of $25 billion –Current biennium shortfall$4 billion –Stimulus and ($6.38 b) and Surplus ($5.67 billion) no longer available$12.05 billion –Tax collections are down$1.5 billion –Business tax of 2006 for property tax reductions has fallen short $500 million –State student enrollment grows by 80,000 annually$2.5 billion –Lower value growth in property values$4 billion Total: $24.5 billion

7. State Budget Reduction Scenarios (*House Version – as of January 21, 2011) Proration: Under-fund state aid on a per- wealth basis -$34,232,473 million Cap target revenue -$36,985,555 million Create a 14 percent reduction to total district funding -$19,438,825 million

8. State Shortfall’s Potential Budget Impact on NISD Shortfall to the 2011-2012 budget of $34.2 million 24% of our General Fund Budget

9. Low Hanging Fruit – Increasing building enrollment capacity Maximize use of –High School Allotment –ARRA Funding –SHARS Funding –Tech Allotment –Federal Funding –Eligible Bond Appropriations plucked, processed, and preserved

10. Fruit Shaken from Top Branches - District Budget Efficiencies 2009-2010 –$1.7 million culled 2010-2011 –$2.5 million culled 2011-2012 –$4.7 million identified over revenue

11. District Efficiency Recognition The Financial Allocation Study for Texas (FAST) Report. Commissioned by the Texas Legislature. Identifies school districts that operate efficiently – achieving strong academic performance while keeping costs low. Identifies cost-effective practices that promote academic progress. Northwest ISD –4.5 Stars –Low cost, high efficiency NISD 4.5

12. We can either complain that rose bushes have thorns – or rejoice that thorn bushes have roses.

13. The Hurry Up and Wait Budget Development Process

14. Hurry Up and Wait Create two initial budget scenarios –Scenario I No significant changes in Texas School Finance funding –Scenario II Anticipate proration with $34.2 million loss Remain poised to respond to 82 nd Legislative Session

15. THE GOALS Present a balanced budget for 2011-2012. Institute reductions in a manner that has minimal impact on quality of teaching for students and staff. Maximize growth position increases to ensure a position for staff in 2011-2012.

16. TO ACHIEVE OUR GOALS We will need to separate issues from people. Be open and honest in our dialogue. Be willing to discuss alternative methods of providing services. Be willing to accept the accountability that goes with making the tough decisions.

17. Budget Scenario I 2011-2012 Budget –No significant changes in Texas School Finance funding. –Normal budget process to cull initial $4.7 million of identified needs over anticipated revenue.

18. Scenario II (The $34.2 million dollar hole) Three steps involving Teachers/Staff, Principals and DLT members –Step One: Awareness of the need –Step Two: Explore items for possible reduction –Step Three: Develop final recommendation

19. We believe: 1.kids come first. 2.continuous improvement is critical for success of the Northwest Independent School District. 3.the success of each student is the shared responsibility of students, families, schools, and communities 4.environment influences learning. The best and most sought-after school district where every student is future ready: –Ready for college –Ready for the global workplace –Ready for personal success Northwest ISD, in partnership with parents and community, will provide all students a premier education, preparing them to be successful, productive citizens. Relentless Resolve