Klawock City School District
Board Work Session
February 27, 2012
I. Call to Order / Roll Call / Pledge / Mission Statement
President Cindy Mills called the Work Session to order at 5 PM.
Karen Cleary Yes
Roseann Demmert Yes via audio conference
Mary Edenshaw Yes
Cindy Mills Yes
Ruby Smith Yes
Tonya Busse – absent - excused
Also Present: Rich Carlson, Val Steward, Jim Holien, and Yodean Armour.
Mary Edenshaw read the Mission Statement. Mr. Carlson indicated that the House Education Committee complimented the Board and District on the Mission Statement when Mr. Carlson had testified before the Committee on February 24.
II. Board Recognition
Mr. Carlson presented certificates recognizing the Board members for their leadership in education. February is Board Appreciation month.
III. Review of Work Session Guidelines
Mr. Carlson reviewed the guidelines with the Board. No decisions may be made, but recommendations can be made. Minutes are to be kept.
IV. Superintendent’s Report: FY 12 Budget Highlights
Mr. Carlson began the discussion with three questions
1) How much draw on reserves do you want to do next year?
2) What do we want to do with the Band program?
3) Do we want to offer a Retirement Incentive Program?
Background: Tenured Contracts must be out the March 15th. Mr. Carlson proposed March 8 as the next Board meeting so that Tenured Contracts can be approved. With regard to the non-tenured contracts, there is much more flexibility as they do not need to be issued until the last working day of the school year. Mr. Carlson has had discussions with some non-tenured staff saying the district may not know until the last day of the school year whether a contract will be issued. Mr. Carlson explained to the Board that the scenarios presented are simply a starting point for the Board to answer the questions posed earlier. There is nothing set in stone. Mr. Carlson believes the legislature will provide some level of relief but probably not in the form of an increase in the BSA, but rather one-time transportation and / or energy monies. The budget scenarios presented to the Board are based on “nearly a worst case
scenario” with no relief provided. There is a slight possibility of some kind of resurrection of the Forestry Receipts program and we will likely know what that will look like in the next 30 days. This would possibly be a one or two year patch.
These following scenarios are based on:
Enrollment of 126 with 5 intensive
Flat funding from the State
No Forestry Receipts
The City funding the District at the Minimum Level Contribution
Positives: We just received $36,000 from the State. We also just received $17,000 from 2009 Impact Aid and $116,000 more than budgeted from Impact Aid. The total is $170,000. This means that hopefully we will have no draw on reserves / capital projects funds this year.
We are going to incur some added expenses related to fixing the bottom portion of the back steps – estimated $10,000. We may also see a reduction in federal funds from something called sequestering. This is a massive cut by the Feds from the cuts mandated under the Super Committee. This could have a major impact on the District. These are all moving targets and we will be taking our best guesstimate.
V. Estimated Draw on Reserves as of End FY 12 (Attachment I)
Mr. Carlson indicated that he expected there to be no draw on reserves for FY 12. There is approximately $1.2 million in Capital Projects plus a CD of $750,000. Mr. Carlson recommended completely taking the CD off the table. If there were any emergencies and we had used the CD it could be eaten up very quickly.
VI. FY 13 Budget Proposals
A. Budget #1 (Attachment II)
Mr. Carlson explained Budget Scenario #1 - The .49 FTE would be achieved by eliminating the current .49 FTE position under “Regular Education” and eliminating classified positions only through attrition.
B. Budget #2 (Attachment III)
Mr. Carlson discussed Budget Scenario #2. The 2.49 FTE comes from the above mentioned, plus eliminating 1 FTE in Special Education and moving existing staff into the STRIVE / SYSTEMS position, thus cutting the person currently staffing that position. In addition 1.26 classified positions will be eliminated - one in the kitchen and one special education position (notice if we have more than five intensive students, the special education position will be added back).
C. Budget #3 (Attachment IV)
According to Mr. Carlson Budget Scenario #3, the budget includes all of the above and eliminates the band position. A 3.49 FTE Cut.
In all three budget scenarios include:
1) A 20% across the board cut in travel.
2) A 40% cut in substitute costs (to be handled in-house)
3) Slightly over 50% cut in supplies and materials.
4) Principal Position is reduced by .15 FTE and added to Special Education Teacher
The Board discussed whether to keep the Band program. It is possible that if it were eliminated completely we could lose students. Administration will investigate the possibility of sharing band services with Craig. The best option for the school would be to approach Craig for three hours of music instruction. If this is not possible Administration will come back to the Board in March and the Board can then make a decision of where to go next in either keeping the Band program or eliminating it. Mr. Holien will look into if we can provide an alternative for the 5th and 6th graders if they choose not to take band.
The Board would like to create awareness with the Community in educating them about the budget issues once decisions are made and how the funding losses can be offset by the City, etc.
VII. FY 14 Projections (Attachment V)
Using Budget Scenario #3, Mr. Carlson suggested the following: He would expect there to be at least 1 teaching retirement next year and would recommend no replacement for FY 14. Superintendent change would mean a cheaper salary for FY 14; eliminate principal position and make it a combined existing teacher / principal position. This would allow the projected cost increases to be offset by the above savings. So there would be a draw on reserves from Capital Projects of about $478,000. Theoretically the district could go into FY 16 with still nearly a half million in Capital Projects. Mr. Carlson also suggested that the Board discuss “Add Backs” - prioritizing adding back positions or programs should more funding become available.
This re-coding of the Principal to less than full time will occur this next year with Mr. Holien serving in Special Education at least one hour a day. So this reduction of full-time principal will occur gradually beginning next year and Mr. Carlson would recommend that by FY 14 the reduction would be to half time.
The Board would like Administration to:
1) Plan a draw on reserves / capital projects funds of $500,000 – primarily adhering to Budget Scenario #3.
2) Seek to share Band position with Craig
3) Plan to combine classes so that High School classes are more equitably distributed with larger classes and the cuts are shared throughout the budget / personnel.
March 8 – Board meeting with sole action item: Tenured Contracts – Mary Edenshaw will be traveling but will call in.
March 22 – Board meeting on Finances. Mr. Carlson will bring the recommendations to fit the $500,000 Budget Scenario.
VIII. Longevity Bonus Program (Attachment VI)
Mr. Carlson presented the Longevity Bonus Program. The Board recommended that Administration pursue this option for staff.
Karen Cleary made a motion, seconded by Mary Edenshaw to adjourn the work session.
The Work Session adjourned at 6:38 PM.