Proposed Expenditure Reductions
At the April 8 meeting of the Board of School Directors, Dr. Augustus J. Massaro, Superintendent of Schools, outlined about $2 million in proposed expenditure reductions for 2010-2011, including $927,247 in personnel cost reductions, $697,900 in operations cost reductions, $225,000 in transportation cost reductions, and $191,230 in the cost of contracted services.
The Avon Grove School District Board of School Directors approved voluntary early retirement incentive programs for eligible support staff and teachers at the March 25 Board meeting. The proposed personnel cost reductions include an estimated $15,000 in projected savings from support staff voluntary early retirements and $130,000 in projected savings as a result of teacher voluntary early retirements. Savings estimates are based on initial letters of interest received in early March. Eligible employees interested in early retirement had until April 15, 2010, to notify the superintendent in of their intent to retire.
Other proposed personnel changes include funding $20,000 in special education costs with grant funds, staffing the gifted education program at the middle school based on student enrollment in the program for a savings of $55,000, redesigning the Cooperative Diversified Occupation/career-to-work program at the high school to both increase efficiencies and enhance the program for a savings of $68,000, leaving the school store position and science fair advisor position vacant at the high school for a savings of $2,247, and attrition of vacant support staff positions for a savings of $239,000.
Proposed operations cost reductions include reducing district office copying costs by $11,000 by eliminating one large copier/printer and replacing a second with a different model/lease agreement, implementing a four-day summer work week and other energy-saving initiatives for about $20,000 in savings, reducing the Pupil Personnel budget by $25,000, reducing other department and building budgets by 15 percent for a savings of $267,000, and net changes in other budget expenditure categories totaling $374,000. The first two recommendations have already been implemented, and the Board of School Directors approved a four-day summer work week schedule for 2010 on March 28.
Projected savings from proposed transportation cost reductions totaling $225,000 include $200,000 in savings as a result of redesigning bus routes,$8,000 is savings from reducing staffing for the middle school late bus, and $17,000 in savings from eliminating the special alternate busing schedule for high school PSSA testing.
Dr. Massaro also outlined proposed reductions in outside services including reducing alternative education program costs by $100,000. Other recommendations include eliminating participation in a professional recruiting consortium for a cost savings of $3,500, reducing legal services by $25,000, reducing tuition costs for the Chester County Technical College High School by $24,480, and reducing district newsletter printing and mailing costs by $38,000.
Students Activities Fees and Facilities Use Fees
As part of the district’s overall effort to evaluate expenditures and identify areas for cost reductions, the Board of School Directors formed two committees with separate charges to evaluate student activities fees and fees paid by outside organizations that use district facilities and school buildings.
The Student Activities Fee Committee recommended that the Board of School Directors consider implementing a pilot student activities fee program that would require high school students to pay a onetime, $25 annual fee if they participate in interscholastic sports and/or other activities that involve nonacademic interscholastic competition, including cheerleading, the marching band, color guards, and indoor percussion. The fee would be nonrefundable and would go into the general fund budget to help defray program expenses. Exempt activities include student leadership, service, and/or academic clubs and organizations participating in academic-related competitions. Procedures would be established to address cases where a financial hardship may exist.
The Avon Grove Board of School Directors is scheduled to consider adoption of the student activities fee program at the April 22, 2010, School Board Meeting, scheduled to begin at 7:30 p.m. in the Avon Grove Intermediate School Audion. If approved by the School Board, the pilot program would begin in the 2010-2011 school year.
The Student Activities Fee Committee was comprised of PTA/PTO representatives from the intermediate, middle and high school; high school Music Boosters and Sports Boosters representatives; the high school athletic and activities directors; superintendent; intermediate school lead principal; two school board members; and a community member with no children in district schools. The committee researched similar programs and policies in other school districts, evaluated and discussed options, and presented its recommendation to the School Board on March 25.
A Facilities Use Fee Committee led by Board Vice President Lynn Klingensmith is reviewing Board Policy No. 707 which outlines the use of school facilities by student groups and outside organizations. The policy was first adopted in June 2001 and revised in October 2005. Proposed revisions include adding a fifth classification and charging facilities use fees for Class II, III, IV and V organizations. The policy includes an Administrative Rule and proposed Fee Schedule. The committee is charged with making a recommendation to the Board of School Directors for consideration. Committee members include representatives from a number of local youth groups, community groups and service organizations that use school district buildings, fields and other facilities. The next committee meeting is scheduled May 12.
Financial Concerns
In his remarks on April 8, Dr. Massaro recalled that in 2009-2010 the Commonwealth’s budget was passed on October 9, 2009, 101 days past the June 30 deadline. School districts throughout the state did not receive the bulk of their state funding until after the budget was passed. Once the Commonwealth budget was passed, Avon Grove’s funding was about $800,000 short of projections contained in the Governor’s original budget proposal last year. He emphasized that according to the district’s budget timeline, the budget must be finalized by June 30. Historically, the Governor’s budget has not been passed on time, therefore, it is likely the district will not be certain of actual state funding levels for 2010-2011 until after the local budget is finalized.
Dr. Massaro also emphasized that if any areas already identified as proposed expenditure reductions are re-evaluated or removed from the list of proposed reductions, the item would need to be replaced with an expenditure reduction of equal or greater value in order to maintain a balanced budget.
He also expressed caution about using the general fund balance to address the budget shortfall. About $1.5 million of the general fund balance was used to help balance the budget in 2009-2010. Sound financial planning practices call for maintaining a certain level of funding in reserve to cover major or unanticipated expenditures, Dr. Massaro explained. In addition, once real estate taxes are raised, only eight percent of the accumulated fund balance can remain in the general fund balance. The remaining balance must be transferred to the Capital Reserve Fund.
Other ongoing concerns include projected increases in energy costs and fulfilling the district’s obligation to the public school employees’ retirement system. All public school employees throughout the Commonwealth contribute 7 percent of their pay each year to the actuarial-based system. Individual, district, and state contributions are mandated by the legislature. In order to meet projected retirement benefit needs, the Avon Grove School District must contribute $1,234,392 in 2010-2011, an increase of $552,047 over 2009-2010 or the equivalent of a 1.3 percent increase in real estate taxes. The cumulative cost increase through 2014-2015 is projected at $15,628,340, or the equivalent of a 12.8 percent cumulative tax increase over the next seven years to cover pension costs. The Avon Grove Board of School Directors passed a resolution Jan. 28 urging legislative action on school employee pension reform that would reduce the obligation as well as maintain an appropriate pension benefit for school district employees.
Next Steps in 2010-2011 Budget Process
Members of the Avon Grove school community are encouraged to review the information posted on the District's Financial Updates page. Community members can provide feedback through the online Budget Feedback Form.
Members of the school community are also encouraged to contact state legislators regarding state funding for Avon Grove School District.
Community members are encouraged to attend School Board meetings, as well as committee meetings related to the budget and finances. The Board Schedule page contains a listing of meeting dates, times and locations.
The Board of School Directors is scheduled to consider preliminary adoption of the proposed 2010-2011 budget and proposed tax rate on May 13, and is scheduled to consider final adoption of the budget and the proposed tax rate for 2010-2011 on June 10.
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