| BOE Minutes | BOE Home Page | |
| Previous: 2007-09-18 || Finance and Operations || Next: 2007-12-11 | ||
| Madison Metropolitan School District Madison, Wisconsin Art Rainwater, Superintendent | ||
|---|---|---|
| BOARD OF EDUCATION Minutes for Finance and Operations October 10, 2007 |
Doyle Administration Building 545 West Dayton Street, Room 103 Madison, Wisconsin |
|
Finance and Operations Committee meeting was called to order by Chair Lucy Mathiak at 12 p.m.
MEMBERS PRESENT: Carol Carstensen, Maya Cole, Lucy Mathiak
MEMBERS ABSENT: None
OTHER BOARD MEMBERS PRESENT: Arlene Silveira
STUDENT REPRESENTATIVES PRESENT: None
STAFF PRESENT: Steve Hartley, Doug Johnson, Art Rainwater, Donna Williams, Ann Wilson-Recording Secretary
1. Approval of Minutes
It was moved by Carol Carstensen and seconded by Maya Cole to approve the minutes of the Finance and Operations Committee meeting dated September 18, 2007. Motion unanimously carried.
2. Public Appearances
Don Severson, Active Citizens for Education, urged consideration of the use of funds to be received from the closing of TIF districts for an activity that has long-term impact. His recommendations are in three areas: reduction of short-term debt, increasing the Contingency Fund balance, and investment in maintenance and/or infrastructure - significant capital improvement. He believes a referendum can be avoided even without using TIF funds to close the revenue cap. He called for a commitment to seriously look at costs and reallocation of current funding.
3. Announcements
There were no announcements.
4. Consultation with the Superintendent on Options for Use of Tax Income from the Closing of Tax Incremental Finance Districts in the City of Madison and Impact on the Use of the Tax Income on Referendum Planning
(Written materials provided in advance: Memorandum from Art Rainwater dated 10/4/07 re: Tax Increment Finance District Rebate; Memorandum from Donna Williams dated 10/4/07 re: $1.5 Million TIF Money Used to Pay off Debt - attached to the original copy of these minutes.)
Lucy Mathiak noted discussion would be around two decision points - the priority for using the TIF rebate funds to cover the budget gap for 2008-09 and ideas about using the balance. Superintendent Rainwater confirmed that the earliest that the total amount would be received by the district is October of 2008; funds could not be applied to the 2007-2008 budget. He explained further that some funding could be received from the closing of one TID district in the spring of 2008 and that, although the funding comes in October of 2008, there is sufficient cash flow as long as funds are budgeted in 2008-2009. The timely question is whether the district will hold a referendum this year.
DISCUSSION:
· Priority is to first fund the gap, then some mix of adding back and reducing short-term debt. Need more information about what is funded in the district budget by the state budget and the amount of the actual gap. (Actual amount for the gap will be known in December. Information is fairly accurate about what will be received from the state budget, except for special education categorical aids.)
· Interested in taking some funds to pay off short-term debt. Reluctant to fund budget gap without first having a public discussion about what is in the "cost to continue" budget. ("Cost to continue" is the amount needed to pay for exactly the same services. Each year, a completely new budget is built - zero-based budgeting.) Concerned about programmatic cuts - other entities cut management. Should there not be across-the-board cuts for business services? (Need to look in the context of what has been cut over the last fourteen years. Have reduced, gone through process improvement, functional analysis. Process has been to prioritize vs. cut across the board. Still must be able to manage the corporation.) (Both an administration responsibility and a Board responsibility to review and develop the budget.)
· Not clear that the budget process follows Board goals and the Framework; would feel better if the process was more open. (Board is very deliberate and follows clear goals and priorities. Timing of election brings new Board members in at the last stages of budget development.)
· Need to look at challenges to communication. Budget timeline is published. Administration asks Board input re: parameters for making reductions. Could have in-depth review of business services budget this year. Cutting across the board takes away the ability to prioritize.
It was moved by Carol Carstensen and seconded by Maya Cole to recommend to the Board of Education that funds received by the MMSD from the closing of TID districts be allocated first to closing the 2008-09 budget gap and to defer discussion of the use of remaining funds, including paying off short-term debt, until information is known about the actual amount to be received and the amount needed to close that gap. Motion unanimously carried.
Lucy Mathiak noted that resumed discussion should begin with the Superintendent's recommended uses for the TID rebate.
It was moved by Carol Carstensen and seconded by Maya Cole that the district not go to referendum in 2007-2008. Motion unanimously carried.
It was moved by Carol Carstensen and seconded by Maya Cole that the Board of Education begin planning for a multi-year referendum in 2008-09 to fund 2009-10, 2010-11 and 2011-12. Motion unanimously carried.
During discussion, it was noted that there may be interest in adding some items back into the budget. Lucy Mathiak asked what the process might be for doing that and what items were being considered.
DISCUSSION:
· Depending on what is received from the state budget, may consider resources for special education, funding K-1 at 15:1, supplemental resources for middle schools and high schools with high needs populations. Also depends on whether the district receives a Smaller Learning Communities grant to fill some needs. May consider K-1 going back to single sections for specials. Many variables; not sure what recommendation will be.
5. Other Business
There was no other business.
6. Adjournment
It was moved by Maya Cole and seconded by Carol Carstensen to adjourn the meeting at 12:45 p.m. Motion unanimously carried.
aw
Previous: 2007-09-18 || Finance and Operations || Next: 2007-12-11