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Hot Topics > 2011-12 Budget

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FAQ

 

 
Frequently Asked Questions  (as of April 22, 2011)
 
 
  • The Budget Committee met for the first time April 27, 2011 and members were presented with the 2011-2012 Proposed Budget. 
     
    Before the second meeting, the committee had a chance to thoroughly review the proposed budget and submit questions to the RSD Fiscal Department.  At the second meeting, May 4, 2011, the committee was presented with the answers to their questions (click to review Q&A).
     
    The committee was also presented with a flow chart explaining the budget approval process (click to review budget approval process).
Q.  Can the approximate $15 million in construction bond savings be returned to the voters?  In return, could the voters approve a local option tax levy to be applied to the general fund?
  • For complete information, please review the approved 02/23/2011 RSD Board of Directors meeting minutes.  Information is listed on page 4 under Local Option Information:  Board Minutes 02.23.2011
Q. How much funding do we receive for each student – what does ADMw mean?
  • ADMw stands for Average Daily Membership Weighted.    We do not know the exact amount for each student but have been working from estimates from worksheets that we get from school business managers.  
  • We estimate that ADMw will be $7,860.5 next year.   That number is calculated by starting with the projected ADM and adding in weighted factors that will yield a larger number than simple ADM. 
  • Weight is given to students with that meet the following criteria; Students in ESL programs: IEP Students capped at 11% of ADMr: Students on IEP Above 11% of ADMr: Students in Pregnant/Parenting Programs: Students in Poverty: Students in Foster Care and Neglected/Delinquent.
Q.  Should we consider "freezing" inter-district transfers in order to keep the students and dollars (ADMw as described above) in our district?
 

Q.  How does athletics and activities impact the general fund?

  • High school athletics and activities cost $257,700 from the general fund.  These funds are complemented by approximately $200,000 or more in pay-to-play fees paid by student athletes and other fund-raising activities.
  • Middle school athletics cost $54,800 from the general fund.   Middle school students also are charged pay-to-play fees.
Q.  What are the numbers that go into the revenue estimate for Redmond School District? 
 
There are three numbers necessary to prepare a budget:
  • The Governor's proposed budget of $5.56 Billion over two years:  Typically, 49% is allocated in the first year, and 51% is allocated in the second year of the biennium.  The actual budget amount is subject to the legislature and will not be adopted until late spring or early summer.
  • The projected enrollment for each school district around the state.
    • Redmond is estimating 6,850 total students for the 2011-2012 school year
    • Average Dailey Membership Resident (ADMr) is projected to be 6,507
    • The difference between current year ADMr is 6,751 and 2011-12 projected ADMr is 244 less students
    • Redmond School District will most likely have less dollars per student due to declining revenue from the State School Fund, and there will most likely be less students.  The impact is as follows:
      • $849,000 - Reduction due to less dollars per student
      • $777,700 - Reduction due to declining enrollment
  • Oregon Department of Education (ODE) will calculate the amount of revenue assigned to each student.  The first estimate will be March 1, 2011.
Q. What are the projected Revenue ADM resources for Redmond School District?

RSD revenue estimate                            $45,604,200           

Estimated beginning fund balance           $3,263,800 

Total resources 2011-12                   $48,868,000

Q. What is a Ending and Beginning Fund Balance?
 
Ending Fund Balance is the amount of working capital left at the end of the fiscal year. At midnight June 30, it becomes the Beginning Fund Balance.  In is simply the rolling forward of the balance at the end of one fiscal year and moving into the next fiscal year.  RSD projects a $3.2 million Beginning Fund Balance for the 2011-12 school year.

 

Q.  What has been the trend in K-12 funding in the last three biennium?

 
Since the 2003-05 biennium, K-12 funding continues has declined from 44.80% to the proposed 2011-13 biennium of 37.70%.
 
Q.  What is the estimated budgetary shortfall for the 2011-12 school year when compared to the current budget?

$4,881,500        Fewer resources

$5,927,000       Increases in expenditures

$10,808,500     Total

-$983,600        Offset by one-time dollars from the Beginning fund balance 
$9,824,900     TOTAL SHORTFALL

Q. How much does it cost to fund RSD for one day?

1 day = $238,300

4.2 days = $1,000,000

41 days = $9,800,000

Q. What would the savings be if all employees reduced salaries to reduce the deficit?

1% salary reduction = $379,000

5% salary reduction = $1,895,100

25.9% salary reduction = $9,800,000

Q. What are some of the "no brainers" things that could be reduced or eliminated by restructuring?

Reduce the real-estate payment = $350,000

Allocate half of the PERS reserve = $800,000

Postpone or eliminate fund transfers = $250,000

Save and increase 2010-11 EFB = $500,000

Remove athletic transportation from GF = $100,000

Total = $2,000,000 

Q. How much could be saved is we closed a school?
 
The cost of support staff, such as administration, secretarial and custodial, nutrition and utilities are the most apparent areas of savings.   The vast difference in each building makes it difficult to place an exact number.   There are also issues attached to closing schools such as boundaries and transportation that would need to be considered as well.
 
Q. What is a COLA? And if the employee groups declined the COLA how much could it save?
 
COLA stands for 'Cost of Living Adjustment'.  It is applied to salary schedules and compensation and is usually based on the Consumer Price Index which varies with the strength of the economy.  Redmond School District is obligated to provide COLA to our employees.  
 
Both employee groups have deferred the COLA that was to be awarded last year.   The certified association (REA) and the classified association (OSEA) have deferred a 1.8% and 1%, respectively.   These COLAs are effective June 30, 2011.  
 
If both groups were to decline the COLA, it could save approximately $484,700
 
Q. What is Early Retirement Incentive and could it reduce the deficit?
 
Early retirement incentives are basically a compensatory means to encourage those employees that are eligible for retirement to retire, thus leaving room for another employee to retain a position.  It also is a means to recoup savings realized from replacing a more expensive employee with a less expensive employee.
 
RSD has offered incentives in recent years, and has been effective in achieving both saving positions and saving money.   We are currently working to calculate the best and most cost effective means to provide such a program.
 
Q. Will there be Reduction In Force (RIF)?  When will employees know if they are on the list?
 
Statute requires a 90-day notification; however, the district will make every effort to let staff know of their employment status as soon as possible. 
 
RIF is the process driven by policy and employee contract to reduce the work force of the school district.   It is based primarily on seniority and qualifications in one of two areas, licensure and experience.
 

Q. How does RIF affect employee insurance?
 
It depends on the specific position held by the employee. Employees should contact the human resources department for answers on how elimination of their position will impact them specifically. It is recommended that employees refer to their appropriate collective bargaining agreement for guidance as well.
 

Q. What happens to accrued leave (sick, personal, vacation):

 
Paid sick leave benefits are not paid out upon separation from employment. However, up to 75 days of sick leave may transfer to another Oregon school district.
 
The district will comply with the employees collective bargaining agreement as it relates to vacation, emergency, and personal leave.
 
Employees should contact the human resources department for answers to how elimination of their position could impact them specifically.
 
Q. Can we or are we returning to a Four-day school week? Why are we not going back to a four-day, What were the initial savings, How much would it save us now?

The four-day school week in 2009-2010 was only a small part of reduction that took place to balance a budget with a $5 million deficit.   The majority of the savings was the result of teachers eliminating the prep during the student-day teaching from the beginning bell to the ending bell which provided the means to eliminate 56 positions.  
 
The actual savings associated with the four-day week itself is approximately $400,000.  
 
At this point, the impact on programs does not seem to merit a return to the fou -day schedule.
 
 

Q. How much would it save if we increased average class size district-wide by one student?

 
$617,600 based on the number of certified staff that would be reduced.
 

Q. If we receive additional money, how do add-backs work, what is priority?

 
Add-backs are simple a philosophy that allows the district to have a pre-determined plan to reinstate things that were cut in the event the revenue picture were to improve. The level of cuts to salary and compensation will be accomplished with the cooperation of all employee associations.   The same is true with respect to add-backs.   When we determine the level of cuts, we will also prioritize the manner in which items will be added back. 
 

Q. Lane changes – what is it, who does it apply to, how much would it save the district if we freeze it?

 
Lane change is the term used to describe movement on the certified salary schedule.    On the standard salary schedule, certified staff can move to a different column based on classes taken and credit received.   
 
Presently, classified and administrators do not have such a schedule so it applies only to certified. 
 
If the association were to forgo the lane changes for next year, approximately $113,100 could be saved.
 

Q. Local tax levy – would it work?

 
Funds from general obligation construction bonds cannot be used for general fund operations.    In other words, the approximate $15 million the board approved for remodels cannot be spent to pay salary or operating expenses.  
 
The suggestion to return the $15 million to the taxpayers and asking for a local option tax levy has been explored and deemed not feasible as it would most likely yield less than $1 million per year.
 

Q. New high school - do we have the funding to open in 2012; if yes, how is it being funded?

 
We are not transferring any dollars from the general fund to a new school start up fund.  
 
RSD is planning to use the facilities grants that are returned to the district at a rate of about 5% of the total construction budget for the new construction and remodels that are currently under way or have been completed.  
 
We have applied to the state for the Terrebonne remodel and Sage Elementary school construction costs.   We should have the funds by late spring.   When the High School is completed RSD will apply for those funds as well.  
 
We expect to have between $3.5 and $4.5 million to use as start-up funds.
 
Q. How much has RSD reduced in recent years?
 
$9 million including programs, staff and compensation.
 
Q. How many instructional minutes are required to maintain a standard school year?
  • Standard school years are based on instructional minutes.
  • Kindergarten is required to have 405 hours annually
  • Primary is required to have 810 hours annually
  • Intermediate is required to have 900 hours annually
  • High School is required to have 990 hours annually
  • The number of days is not specified, so calendars vary from district to district and is largely governed by the collective bargaining agreements.         
  • We currently are maintaining a standard school year.

Q. Step increases - what is it, who does it apply to, how much would it save the district if we freeze it?

 
A step increase is an increase in compensation due to a year of service. 
 
The certified contract has 15 steps and the classified contract has 6 steps, steps are not applicable to the administrative, mgr, confidential and supervisor group. 
 
If certified and classified staff were to forgo step increases, the savings would be approximately $518,600
 
Step increases do not apply to the administrative/mgr/confidential/supervisor group.
 

Q. What are our current contractual obligations to the classified and certified groups?

 
The classified employees are linked directly to the certified contract with regard to days.  
 
The contractual obligations that are currently under the agreement are a 1% COLA and step increases for classified and 1.8% plus step increases and lane changes for certified. 
 
The administrative/mgr/confidential/supervisor groupAdministration does not receive step increases or lane changes, and has had a COLA freeze in place for the last three years.
 
Q. What are the general fund expenses?
Personnel = 81%,
Contingency (Ending Fund Balance) = 4%,
All other operational costs = 15%

Q. What is the average staffing ratio across the district? 

 
The class size ratio is a different and much higher number than staffing ratio as it measures the average number of students in classes at a given time.  Those ratios are currently as follows:

Elementary = 27.35

Middle School = 29.94

High School = 29.98

Q. What percentage is the general fund salary cost for each group?

  • Certified (teachers, counselors, dean of students) 67%
  • Classified (secretaries, custodians, bus drivers, educational assistants etc), 24%
  • Admin/mgr/confidential/supervisor (principals, assistant principals, district-level directors, district-level administrative assistants, HR assistants, etc)  9%

Q. What reductions have been made at the district office?

 
Since May of 2010, approximately $400,000 has been reduced in compensation and positions.

 

Q. Can teachers volunteer to be RIF'd?

 

RIF'd may not be the right term, it may have to be an unpaid leave or sabbatical to make it legal.  RSD is looking into the feasibility of the idea and working to calculate the savings and process for implementing such an idea.  

 

Q. Could an administrator be in charge of more than one school?

 

The simple answer is yes.  As with other administrative costs, sharing schools is one idea that is being explored in an effort to employ the most efficient way to accomplish the task of running schools.

 

Last Modified on 5/26/2011 9:51:35 PM
Redmond