Finance and Operations - February 19, 2007

Madison Metropolitan School District Madison, Wisconsin Art Rainwater, Superintendent
BOARD OF EDUCATION Minutes for Finance and Operations February 19, 2007		Doyle Administration Building 545 West Dayton Street, Auditorium Madison, Wisconsin

Finance and Operations Committee meeting was called to order by Chair Lawrie Kobza at 5:02 p.m.

MEMBERS PRESENT: Carol Carstensen, Lawrie Kobza, Lucy Mathiak (arrived 5:04 p.m.)

MEMBERS ABSENT: None

OTHER BOARD MEMBERS PRESENT: Ruth Robarts, Johnny Winston, Jr.

STUDENT REPRESENTATIVES PRESENT: Joe Carlsmith (arrived 5:06 p.m.)

STAFF PRESENT: Sue Abplanalp, Frank Crisafi, Mary Gulbrandsen, Pam Nash, Roger Price, Joe Quick, Art Rainwater, Marcia Standiford, Ann Wilson-Recording Secretary

1. Approval of Minutes

It was moved by Carol Carstensen and seconded by Lawrie Kobza to approve the Finance and Operations Committee meeting minutes dated January 22, 2007 and January 24, 2007. Motion unanimously carried by those present.

It was moved by Carol Carstensen and seconded by Lawrie Kobza to approve the Joint Finance and Operations and Long Range Planning Committee meeting minutes dated January 22, 2007. Carol Carstensen noted that Lucy Mathiak should be listed as absent at this meeting. Motion to approve the minutes as amended was unanimously carried by those present.

Lucy Mathiak arrived at this time.

2. Public Appearances

Barbara Schrank - As part of the annual budget process, activities and courses that are valued by the community are continually put in jeopardy. Citizens like her are willing to work and help, but their efforts need to be in partnership with the Board of Education efforts. The Board of Education can help the community by working with them to develop a multi-year plan of financial support for those programs and activities identified to be of value to the community. The funding plan should include a combination of district and endowment funds. There are other choices than taking major chunks out of single courses or activities without a plan. The Fine Arts Task Force, for example, could factor into their work identifying funding with courses that are valued. To be successful, the community and Board must be committed and work together.

Joe Carlsmith arrived at this time.

Comments:

· Would need an endowment of $4 million to cover a $200,000 program (like strings). Involving the public in ways to finance programs is important, but this kind of process should not be expected to replace what has been historically supported by taxpayer funds.

· It would take a substantial endowment, but thinking outside the box should be embraced. People working together can make things happen. Need a vision and a plan for a capital plan to support programs in the schools.

· Another option is going to referendum, but because of the state's funding formula the district loses part of that money (negative aid). Any parental or community involvement is welcome to find ways of funding that would avoid that penalty.

Nancy Webb - Asked the Board to adopt a policy to explore all mediation and settlement options before going to due process for special education cases. Litigation is outrageously expensive and outweighs the cost to provide the services requested. Have repeatedly asked for mediation and been denied. The Board's first policy is not to attempt resolution to meet children's needs. Provided written material (attached to the original of these minutes).

3. Announcements

There were no announcements.

Items 4 and 5 were taken up together.

4. Interscholastic Athletics Program

5. Extracurricular Programs

(Written materials provided in advance: Athletic Department Study Committee Final Report dated April 2005, PowerPoint presentation MMSD Athletics, Participation-Cost-Impact; PowerPoint presentation MMSD Clubs and Activities, Participation-Cost-Impact - attached to the original of these minutes.)

Pam Nash presented information about the Interscholastic Athletics Program and Extracurricular Programs (PowerPoint presentation attached to the original of these minutes).

DISCUSSION:

· Gate receipts go back into the general fund.

· Sports are the same across schools; clubs are different.

· Schools with fewer resources are able to do things; participation level makes a difference.

· Athletic Directors indicated they were comfortable with the same transportation budgets even though travel needs are different among schools.

· Extracurricular activities are not able to be funded by Fund 80. Can fund clubs and after-school programs open to the community at large. Explanation of what can be funded by Fund 80 and why.

· Process for combining teams.

FOLLOW-UP:

· Reconcile costs with citizen's budget.

· Net cost per sport (with gate receipts) (back out fees).

· Compare revenue, expenditure and participation rates among schools.

· Identify cost per student per sport.

· Need comparable information all extracurricular programs - compare costs of activities per student.

6. Citizen's Budget

(Written materials provided in advance: Citizen's budget draft dated 12/4/06. Written materials provided at the meeting: Citizen's Budget 2006-07 dated 2/19/07 - attached to the original of these minutes.)

Roger Price noted the changes made since the last version.

Lawrie Kobza suggested the administration begin developing the footnotes and annotations to describe what is included in the amounts shown. She asked Committee members to look back at their notes and the comments gathered to be sure all of the changes that should be made are included.

DISCUSSION:

· Comfortable with broad categories to portray sources of funds (revenue)

FOLLOW-UP:

· Include percents for subtotals

· Change outline to make it easier to track (A, 1, a)

· Also include subtotals for categories in section 1

7. Issuance of Bonds and Refinancing of Outstanding Debt Related to those Bonds

(Written materials provided in advance: Memorandum from Roger Price re: Debt Issuance - November 2006 Referendum - attached to the original of these minutes.)

Roger Price reviewed the information provided in written form. The District is currently working with our financial advisor to issue bonds to finance projects approved in the November 2006 referendum. It is the advisor's recommendation to include the refinancing of outstanding 1991 and 1992 bonds with this issuance. Mr. Price outlined the savings to the district that would result. It was noted the length of the term of the bonds would be the same. No action is required at this time. It is planned to accept bids on March 5, 2007 and to present those to the Board of Education for approval at its regular meeting on that date.

8. Impact of the Governor's Proposed Budget

(Written materials provided at the meeting: Memorandum from Joe Quick and Roger Price re: Governor's Budget Recommendations - Impact on MMSD dated 2/15/07 - attached to the original of these minutes.)

Roger Price and Joe Quick reviewed the Governor's Budget's major K-12 provisions and their impact on the Madison Metropolitan School District (as presented in written material). Art Rainwater added that, at this point, only the SAGE funding increase will be included with budget planning.

DISCUSSION:

· Pretty much consensus among lobbyists that the proposed school security revenue limit exemption is not what districts were hoping for. Unified efforts to expand the language to be closer to what Rep. Black proposed. This language requires an equal match by the police department.

· Flexibility regarding use of Common School Funds would be a great help. Challenge to meet the current criteria.

· Elimination of the QEO is a major change and would have a long lasting effect on the arbitration process and is not beneficial to schools.

· Special education categorical aid increase - thinking that will hold. All districts grappling with this issue; would be surprised if it was decreased.

· Encourage use of revenue projections that the district is comfortable with, but not to be overly pessimistic either.

Regarding what affect the proposed Governor's budget will have on the district's budget development, Roger Price indicated the district will include the SAGE funding increase in its planning and will develop a prioritized list of items that could be included in the budget if other parts of the Governor's budget become reality.

Regarding salary savings, Art Rainwater indicated the administration's proposed budget will include $1 million in savings that can be clearly documented.

Regarding potential changes to the $10 million projected budget reduction, Roger Price indicated the administration is now building the cost-to-continue budget and reviewing revenue lines that will result in a clearer picture of what the bottom line will be. The Superintendent and Mr. Price believed an actual target may be available next week.

9. Other Business

There was no other business.

10. Adjournment

It was moved by Lucy Mathiak and seconded by Carol Carstensen to adjourn the meeting at 6:24 p.m. Motion unanimously carried.

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