Finance and Operations - January 24, 2007

Madison Metropolitan School District Madison, Wisconsin Art Rainwater, Superintendent
BOARD OF EDUCATION Minutes for Finance and Operations January 24, 2007		O'Keeffe Middle School 510 South Thornton Avenue, Cafeteria Madison, Wisconsin

Finance and Operations Committee meeting was called to order by Chair Lawrie Kobza at 6:35 p.m.

MEMBERS PRESENT: Carol Carstensen, Lawrie Kobza

MEMBERS ABSENT: Lucy Mathiak

OTHER BOARD MEMBERS PRESENT: None

STUDENT REPRESENTATIVES PRESENT: None

STAFF PRESENT: Roger Price, Ken Syke, Barbara Lehman-Recording Secretary

1. Public Appearances

There were no public appearances.

2. Announcements

There were no announcements.

3. MMSD Budget for Citizens

(Packets included a letter inviting people to the meeting (1/3/07) and the draft Citizen's Budget (12/4/06). Copies are attached to the original of these minutes.)

Lawrie Kobza reported that the Citizen's Budget has been in process since October 2006. The goal is to put the district budget into two pages. Other criteria are that it be based on real numbers as a reproducible document with no judgment calls. It will allow for some tracking through the year. Categories need to make sense. Over time, more information can be added if it is useful. There will also be other ways to express this information like visual aids and pie charts. The next step is to ask what the community thinks and gather questions, concerns, ideas for improvements, etc. She was looking for a short budget document (two pages) to put on the web that was understandable that can be used on a tracking basis and allow people to look at the numbers and see them in relation to each other. The thick binder she gets as a Board member does not allow that for her.

Ken Syke described the process they would take of breaking down into small groups of five to seven people to gather feedback.

Broke out into groups 6:43 p.m.

Groups reported out at 7:20 p.m. with their major points.

Group 1:

ü Acronyms are confusing.

ü Two pages are too limiting.

ü Too much to each category.

ü Need an introduction with context of the document, etc., and questions.

ü Define terms and use footnotes.

ü Break down operations by elementary, middle, and high school levels, not to compare to each other but to watch the changes year to year.

ü Numbers so big - hard to get around fringes and salaries.

ü Break down support staff by level also.

ü Want to see relative amounts spent on direct services vs. other things.

ü Need a web-based document with pull-down tabs (example: special education with tabs for transportation, instruction, etc.)

ü Use better spacing and shading for readability.

ü Subtotals work better in the middle of the document.

ü Fringes: two separate ways - as another category by level, footnotes for each category, use total numbers for health care, FICA, etc., to compare year to year.

Mr. Price explained that fringes are not tied to a person or specific line item. They are trying to avoid putting formulas in the document. Food Service and Custodial employees are easier but teachers, aids, guidance, etc., are not detailed in that way. Getting away from running a live report. Per pupil spending by category cannot be done without creating several fringe accounts per employee. Percentages could be done. Have to be consistent throughout the document. It is not done on a per-person basis.

ü Use pie charts comparing salaries, fringes and benefits of teachers to other positions like state or county workers or similar positions outside the district.

ü Create a secondary report showing funding sources so the changes could be watched.

ü Content and explanation of #10 (districtwide). Explain it better and interfund transfers need better explanation.

ü Many do not have access to the web - should have hard copies in various places in the community and printed in different languages.

Group 2:

ü Could not fit what they want on two pages; want to see more.

ü Per unit costs on some level. How many students are served. Same thing for FTE and staff.

ü Target audience - this group is interested in more detail than the general public. What misconceptions would the general public get looking at this? What is missing that should be here? Do not know the answer.

ü Additional information will be sent via computer.

Group 3:

ü Good diverse group.

ü Fund sources.

ü Mandates - what is required and how much being funded.

ü Split out by level as in the $100 budget process.

ü Executive summary depends on the audience - could use several more columns with subcategories.

ü Use landscape format.

ü Use the term benefits rather than fringes.

ü Average costs per pupil compared to state and national levels.

ü Define 6b (technology and support) and 8g Public Relations and Communication) and 1 c ii (Nurses, Nurse Assistants)

ü Also want to see information behind each of the categories as to number of schools - goes to unit cost that was mentioned earlier.

Group 4:

ü Pop-ups on the web.

ü Provide number of schools, staff, kids served.

ü Detail of revenue.

ü More detail on Food Service, transportation (private school and parent contracts).

ü Split out ESL.

Wrap up:

Definitions and footnotes are critically important. Hand in individual sheets. The two pages will not be taken so far as to make it not understandable. Number of teachers and staff might be a different document. Keep the summary simple. Good direction trying to make the information more simple and approachable. Fine to have other things in another place, to have some idea. A number of end notes or appendices could be added. Could be a press release when it is voting time, except that it is not a decision document. It can reflect the Board's decisions as it deals with the budget. Should state on the document that this is very complicated and more information can be found and where. Dangerous to let people look at two pages and think they understand a $330 million budget. Make sure the things that are great about Madison schools are in here.

COMMENTS SUBMITTED BY EACH GROUP FROM EASELS:

Ø Subtotals for each category

Ø Consistency for fringe and salaries what is "fringe?" List percentage used broken out for each staff category.

Ø Percentage of budget for each item

Ø Link pop-up to see description of each item

Ø Easier to read - lines

Ø Narrative of items for those without internet access

Ø Summer School vs. MSCR Youth Programs - what is the difference.

Ø List number of schools, staff and number of kids - elementary/middle/high - served with this budget (FTEs)

Ø Number of kids served by each program, elementary/middle/high

Ø Discretionary pot of $ per school; how shown/is it shown on the budget?

Ø Description of allocation and how it works at a school

Ø Detail revenue and where it comes from; what is it used for (e.g., taxes, state $, etc.)

Ø That food service is revenue neutral

Ø Increase MSCR fees for programs

Ø What is private school transportation costs? Parent contracts?

Ø Why transportation $ for elementary and secondary so similar?

Ø Split out special education and ESL administration and costs.

Ø How many people in general administration (a-j)

Ø #2 (Curriculum & Teacher Development & Support) vs. #8 (General Administration) - what is the difference?

Ø No acronyms

Ø Two pages too limiting - context, demographics, purpose, contact information.

Ø Introduction

Ø Definition of terms - footnotes

Ø Breakdown operations by levels (elementary/middle/high for salaries)

Ø Web-based document - pull-down tabs (with subtotals)

Ø Better spacing - or shading

Ø Every letter subtotaled; separate column for subtotal

Ø Fringes - by category (elementary/middle/high), perhaps in footnote accounts (example: teachers $ plus fringes in one #. Each category like this: footnote - total $$ (in line 1g)

Health care

FICA

Etc. for do fringes as a column

Ø Secondary report showing funding sources

Ø Context - compare to other years in the future, demographics

Ø Explanation of #10 - put in the definition of terms or footnotes. Also interfund transfers

Ø Communication issues - no universal web access. Do in schools, libraries, community centers.

Ø Languages

Ø Where do revenues come from: property tax, state aid (general and categorical), fed, fees, other

Ø End notes/appendices

Ø Mandates

Ø Split out elementary, middle, high school (as in $100 budget and April '06 Exec Summ)

Ø Several columns (current year and a few prior years)

Ø Subtotal for each category

Ø Use landscape format with horizontal lines (as in April '06 Exec Summary doc)

Ø Use term "fringe benefits"

Ø Comparison with state and national averages for pupil spending, salaries and benefits, class size, etc.

Ø G(b) need to be defined and other terms (like 8(g)) like 1(c)(v)

Ø No. of schools, teachers, people, programs, etc.

Ø Define terms and what they include alternating shaded rows subtotals within categories

Ø Break down teachers by elementary/middle/high schools

Individual feedback sheets:

v Although important to track cost of labor, I don't want finger pointing toward teachers.

v Best relayed in our groups' pages. My extra point of relaying complexity - web-based java script - pop-ups with contact info. for further info.

v 6a and 1 cv—split out groups. 8g felt "comm." more important than P.R.

v Subtotals per categories/fringes. You need to think of non-internet distribution as well. A descriptive document needs to be available in print form for all. FTEs per line item and/or staff. Give a percentage of the total budget for each line item. It is not useful to me to see the budget separated by elementary, middle, high.

v Most important is to keep terminology clear so it's accessible and understandable by everyone. Layout needs to be easy to be read - use grey shade. Need subtotals for major categories. Be consistent in how info. is presented and categorized. Need income sources. Where is TAG?

v Put it on web site. Add columns for elementary, middle, high, and total. Use subtotals. Separate out support staff. Allocate fringes for staff. Need footnotes to explain what interfund transfers are. More detail on MSCR (net of fees, self-funding). Explain more detail items under #10.

v Subtotals and percentage of budget of each line item. Explain info. on fringes for teachers and all staff. Separate categories by underlining, bolding. Summer school vs. MSCR youth programs? Does summer school include enrichment or just remedial? Who is included under 1a (administration)? How many students, schools and staff in each category? Include revenue lines. Charge more for MSCR classes for those families who can afford - many families would be able and happy to pay more. Please include info. on TAG. Under transportation - explain section e. Why is secondary transportation high in relation to elementary? Specify FTE under General Admin. Clarify categories under 8 General Admin. Thanks for the chance for input! Thanks to school board members!

v Addendum with definitions of what costs are included in each line item. Shade every other line for readability. Add subtotals for each high level category. Spell out acronyms (e.g., ESL, MSCR). Explain "Interfund Transfers" - not sure what it represents at bottom. Keep this simple - better to keep this high level and provide other docs to breakout and provide more detail.

v Indicate which items are parts of the negotiated contracts. Indicate which items involve federal or state mandates. Indicate which involve grant funding. Offer clarifying items for any items that might not be obvious (e.g., unemployment compensation, government/co-op programs, salary savings/budget changes). An item like 10 a needs big explanation as it is the only (-) item.

v Some more detail, related documents to link to. Needs to be available in hard copy also. In newspapers, (subscription and free, e.g., Isthmus), at libraries, sent home and school parent newsletters. Include some narrative/explanation to put the budget into context and also explain some basic facts about the district. Overall, a useful document. I like the idea of it being a reproducible document that can be compared/tracked year to year.

v Not everyone speaks English - make sure translated. Two pages is limiting - makes print too small. Still do not understand fringe - may need one page definition. Not everyone has web. Who is the audience for this document? What is difference between item #1a and #8. No line for TAG.

v Thanks for having this session. The group format helped to identify common concerns.

v Regarding TAG - this is more of a general comment. TAG is a socially constructed category. If you are going to address equity, TAG is problematic.

v Split budget by program (formula - not actual).

v Pop-ups on each item and description of what is included in that item. Fringe percentage assumption; consistency. Special ed. vs. ESL administration split out. No footnotes. Keep portrait format. Keep to 2 pages. Where is the TAG piece?

v State/federal funding and property tax/grants. Number of schools and facilities and positions. Contractual agreement vs. direct employees. Mandate and how much is funded. Difference between 1a and 8. How is summer school and MSCR different? Substitutes base pay or benefits too (7b max or what is the limit)? Define fringes for staff. Non-athletics (what programs) number of participants. Athletics (number of programs; number of participants.) Books, supplies and equipment for all schools or utilized by downtown? Staff, other than in-school custodians (who is this? Social workers?) Maintenance and repair (reference location on site to find (new vs. old?) Summer school (so low? MSCR?) Technology and support (for schools or downtown?) Administrator Retirement Plan (unused sick/vacation leave?) Board of Education and related staff (who is this and why more salary?) Secondary Administration (define middle/high school). Public Relations and Community (amount? What's included?) Government/Co-Op programs (what's this?) Research and Evaluation (what's the difference vs. #2?) Define debt service. Insurance (property?). Define open enrollment/refunds/formula adjustment. MSCR (school or not school). Adult programs (more on how to encourage family participation in school). Define interfund transfers.

v Special education - in general, I think you should work on publicizing the fact that the federal government is only paying a small portion of what they promised to pay under ADA/IDEA. The remainder is left to local people. This is misunderstood in the general public. Fringes for staff (you should give an example or it sounds like school staff are receiving gold Rolexes or something). Private school transportation (this is ridiculous). Elementary education Administration/Secondary Administration (where does middle school administration get placed). Public Relations and Communication (this should be reduced). Government/Co-Op programs and Research and Evaluation (examples? These two sound very "generic" and unnecessary without an explanation or example). Debt Service (what is this? Costs a lot.) Overall, I think the categories fit, but more examples or explanations might help people understand where the money goes, specifically.

v 1.h.i & ii. - are these staff time? 2.a. - this seems like a lot of money for staff. 3.a. - where are the custodians? Why aren't these grouped in General Administration? 6.a. - why isn't transportation under 4? 7.b. - I thought this functionality was provided by ETF. Is this the annual payouts for retirement funds? If so, where are the payouts for SSI and withholdings?

v First, I think this is a great idea and for a first draft it looks great. Second, here are just some minor suggestions that I have about making this more clear (having had to look at the City of Madison budget for 2 years - truly this is a heroic feat on your part:
- a - add a glossary to explain each category and section. I recommend just a brief one-sentence explanation.
- b - I would move General Administration before the In School Operations just so that they are together. It seemed

more linear to me.
- c - 2 A under Curriculum support - I was not clear if that "staff" meant staff salaries or if that meant staff supplies -

I would make that more clear.
- d - Staff vs. staff administration - be consistent about word choice - are these two the same or different if so what

is the difference (sort of similar to (c) above.
- e - I am wondering if you should also include a column which lists the FTE for each category as well as the dollars

you already include? It helps with perspective and context. This will be come helpful once you prepare the

document that shows trends and change over time.
- f - Last but not least - I would list the reference page(s) for each section to the larger document you put out so

that if citizens want more details they can go to the appropriate page in the large budget document that you

prepare.

Again, great idea, great job and I thought it was very easy to read and understand. I am sure more people will have

additional suggestions. One key thing to keep in mind is keep the budget itself on two pages as you have and use

the appendices to help clarify information and refer other documents, but I would not go beyond another 4 pages

for that piece. If you can keep it to an overall 5 pages you will have been very successful.

Thanks for an opportunity to weigh in!

v These are for consideration in the process, not meant as questions I need answered personally. I'm pleased to see that sources of revenue and changes over time will be added to the "chart". As set up now, I needed a ruler to follow across the open space to the figures. With more columns, that will not be a problem in future versions. As a firm backer of Art and Music, I looked in vain for where they are "buried": Regular Curriculum? Alternative programs? Non-athletic extra-curricular? I.a/ Administration: does this include secretaries in the school offices or are they 1.c.v. Support staff or where?? At the H.S. and M.S. levels, do the departments have secretaries? As a person not in the workforce, what fringes are included now in 1.g.? What are the issues around health insurance - is this set by teacher-district negotiation? 4. Transportation this appears to be the transport to and from the regular school day. What is the current level of funds for field trips, especially at the elementary level? Will contributions for field trips by local PTO/PTSO, School Foundation grants, etc. be shown when all revenue sources are added? How are interfund transfers determined? On what are they based and when in the fiscal year? Where in the budget would one find the cost of the study of the overall high school program? In which year(s) would the changes be made -presuming improvements will be agreed upon? Are there any improvements in the timing of transfer of funds from the state government to local school districts? I seem to remember a crunch because of a) when property taxes are due and paid b) when the income taxes are due and paid and c) the school year calendar - including the end-of-second-week enrollment counts. I'd suggest a section or final discussion on the advisability (politics, timing) of going to referendum each year to maintain the quality of our schools. Supt. Rainwater was quoted in a recent Cap Times article that the revenue caps were helpful or useful in the beginning, but "efficiencies" have now turned into educationally destructive cuts. Also, there was a coordinated effort to get the state legislature to make changes - such as putting the transportation costs in the Dept. of Transportation instead of DPI. Where does that kind of citizen action stand now?

4. Other Business

There was no other business.

5. Adjournment

The meeting adjourned at 7:50 p.m.by unanimous consent.

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