fiscal year 2015 adopted budget and financial statements

8/12/2019 Fiscal Year 2015 Adopted Budget and Financial Statements

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Think. Learn.Grow.

ADOPTED BUDGET & FINANCIAL STATEMENTSFISCAL YEAR 2015Des Moines Public Schools | Des Moines, Iowa 50309

Fiscal Year 2015 | Beginning July 1, 2014 | Ending June 30, 2015

www.dmschools.org | facebook.com/dmschools | twitter.com/dmschools


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FISCAL YEAR 2015

ADOPTED BUDGET & FINANCIAL STATEMENTSBudget Adopted: April 1, 2014

May 20, 2014

BOARD OF DIRECTORSCindy Elsbernd, Chair

Bill Howard, Vice Chair

Rob X. BarronConnie Boesen

Teree Caldwell-JohnsonToussaint Cheatom

Pat Sweeney

Thomas M. Ahart, Superintendent

Report issued by the Office of Business and FinanceThomas Harper, Chief Financial Officer

(515) 242-7745

901 Walnut Street

Des Moines, Iowa 50309


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.

The district extends special thanks to the budget development and design team:

Casaundra Christensen

Dave Kehm

Nick Lenhardt

Jessica Buchheit

Pam Gomez

Adam Rohwer


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Table of Contents

Introduction & Overview

Superintendents Message ............................................................................................................................................... 1

The District & Community ............................................................................................................................................. 3A Focus on Progress ...................................................................................................................................................... 22

Fiscal Profile ...................................................................................................................................................................... 29

District Leadership ......................................................................................................................................................... 44

DMPS Schools .................................................................................................................................................................. 49

Financial Structure, Policy & Process

Fund Descriptions & Fund Structure .......................................................................................................................... 69

Fund Relationship ............................................................................................................................................................ 76

Basis of Budgeting ........................................................................................................................................................... 77

Financial Policies .............................................................................................................................................................. 80

Budget Process ................................................................................................................................................................ 87

Financial Summaries

Consolidated Financial Schedule .................................................................................................................................. 92

Three/(Four) Year Consolidated & Fund Financial Schedules .............................................................................. 93

Fund Balances ................................................................................................................................................................... 98

Revenues ......................................................................................................................................................................... 129

Long-Range Financial Plans .......................................................................................................................................... 147

Capital & Debt

Capital Expenditures .................................................................................................................................................... 152

Impact of Capital Investments on Operating Budget ............................................................................................ 166

Debt ................................................................................................................................................................................. 177

Departmental Information

Personnel ........................................................................................................................................................................ 185

Department Descriptions, Accomplishments & Goals ........................................................................................ 197

Appendix

FY 2015 Certified Budget ............................................................................................................................................ 250

CBAC Letter .................................................................................................................................................................. 257

EBAC Letter ................................................................................................................................................................... 260

Glossary .......................................................................................................................................................................... 262

Acronyms ........................................................................................................................................................................ 268


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INTRODUCTION & OVERVIEWSECTION 1


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2014-2015 ADOPTED BUDGET 1

Superintendents Message

March 6, 2014

Members of the Board

Cindy Elsbernd, Chair

Bill Howard, Vice Chair

Rob X. Barron

Connie Boesen

Teree Caldwell-Johnson

Toussaint Cheatom

Pat Sweeney

It is my pleasure to present the 2014-15 budget of Des Moines Public Schools.

This budget is the result of a collaborative effort on the part of every unit within the District, along

with the Citizens and Employees Budget Advisory Committees, to implement a financial map that

leads in the direction of our goals and priorities.

In most cases over the past several years, DMPS has been faced with significant unknowns at this

point in the budget process. From the level of State funding to our comprehensive agreements with

employees, we have had to plan our budget relying on predictions about some very significant items.

This year, we have much greater stability and knowledge as we moved forward with the 2014-15

budget process.

First, the District is in the middle of two-year collective bargaining agreements with employee

groups. Two-year agreements have allowed for better planning of staffing costs, which account for

more than 80% of our budget.

Second, the Iowa General Assembly last year approved legislation which set allowable growth for

two years, so we know what is expected in State funding.

These two factors have enabled DMPS to forecast with a greater degree of certainty our major

revenues and expenditures and enabled us to do an even better job of focusing resources on our key

mission: the education of more than 32,000 students.

From enrollment to proficiency to graduation, every key measure of the work of this District is

moving in the right direction: up. Our focus must be on not only on how we maintain those trends,


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but doing so in a way that every student has the support they need to be ready for their next

stage in life.

This budget continues support for those things we know are contributing to success in the

classroom, while also taking steps to do even more, such as increasing the use of technology in

support of our curriculum; adding 30 new positions, the vast majority of which are within ourschools and classrooms; continuing implementation of a new grading system to replace what has

been in place for the past century; opening a brand new early childhood center in the heart of our

community; and completing a long-overdue realignment of our elementary school attendance areas

so that every child has a seat at his or her neighborhood school with access to a rich diversity of

learning experiences.

And this budget is based on the fact that we will continue to build on our record of efficiency, using

financial management, building and operation programs, and communications tools that have been

recognized across the state and nation for their excellence.

For the past decade, the Districts financial plan was developed in a political, economic, and budget

environment that was far from ideal. As a result, recent years have emphasized recovering from the

recent past. While this District and all of public education continues the need to address policy and

budget priorities at both the state and national level, at DMPS we are now looking forward, not

backward.

As Superintendent, I present this budget with the confidence that it is directing our resources to not

only continuing the progress we have seen in recent years but, more importantly, to making a

positive difference in the education, and the lives, of the students we all serve.

Sincerely,

Thomas M. Ahart

Superintendent


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The District & Community

DES MOINES: A VIBRANT, INNOVATIVE, AND

DIVERSE CITY

As Iowas capital city, Des Moines is a hub of

government action, business activity, and cultural

affairs. The U.S. Census Bureau estimates that the Des

Moines city proper, comprised of 80.87 square miles of

land, is inhabited by approximately 207,000 people,

roughly 25% of whom are younger than 18. The

median household income (2008-2012) in Des Moines

was $44,862, and 17.7% of persons live below the

poverty line. With a metro population of 569,633, the

greater Des Moines community is a bustling

metropolis. Major industries in Des Moines are insurance, government, manufacturing, trade, and

health care services, and the Des Moines area businesses draw employees from a five-county area.

While there is big city bustle, the community is extremely proud of its small town atmosphere.

Throughout Des Moines are dozens of neighborhoods, each with its own personality and style. The

community offers superb schools, quality public services, and friendly neighborhoods.

Downtown Des Moines offers amenities usually found only in major cities: unique shopping in the

East Village; dining at world class restaurants; countless entertainment opportunities at Wells Fargo

Arena and the Civic Center; educational opportunities at the Science Center of Iowa, Downtown

Library, and Pappajohn Sculpture Park; and professional sporting events. The city boasts uniquehousing options at several lofts and townhome developments, has one of the nations largest

farmers markets, and is home to a top-ranked art festival. The community also has a vibrant

outdoor scene. One can listen to summer concerts along the banks of the Des Moines River or on

the steps of the State Capitol; take a leisurely stroll along the Principal Riverwalk; and the entire

metro area is connected by a series of parks and trails so one can enjoy a bike, walk, or run on a

warm summer day, under the colored leaves of autumn, or on a blanket of freshly fallen snow. In

fact, Des Moines Grays Lake Park was recognized as one of the nations best outdoor places, and

central Iowa is intertwined with more than a hundred miles of trails.

Heres what others have to say about Des Moines being a great place to live and work:

Des Moines is the #1 Wealthiest City in America TODAY show Des Moines is the #1 Best Medium-Sized Metro Area for Homeownership Nerdwallet Des Moines is the #1 Place for Business and Careers in 2013 Forbes Des Moines ranks #1 Best Cities for Families Kiplinger

As Iowas capital city, Des Moines is a hub

of government action, business activity,

and cultural affairs.


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Des Moines ranks No. 5 in Top 100 Best Cities for Families Parenting Magazine Greater Des Moines ranks #1 Best City for Young Professionals Forbes Des Moines ranks #2 Best Place for Business Forbes Des Moines is the #1 richest metro in the nation US News & World Report Des Moines is the #1 city in the US for home renters Time Magazine Iowa ranks #9 for best state for business CNBC Des Moines is the #4 city in the nation for doing business MarketWatch Des Moines ranks in the top 10 Best Cities for the Next Decade Kiplinger Des Moines ranks #1 as the Best Place for Business and Careers Forbes 2010 Des Moines is one of the 20 strongest-performing metro areas Brookings Des Moines living costs are 10 percent below the national average The Council for

Community and Economic Research

Des Moines is the #6 healthiest place to live Parenting MagazineABOUT DES MOINES PUBLIC SCHOOLS

District Goals

DMPS developed itsStudent ExpectationsandBoard

Beliefs, in part, through public input in a series of

Community Conversations. Student Expectations are

deliverables that address educational goals and desired

outcomes for students, while Board Beliefs emphasize

the governance of school operations and focus of the

districts work on behalf of the education of students.Together, the Mission, Student Expectations, and

Board Beliefs serve as the overarching district goals.

Mission StatementThe Des Moines Public Schools Exist So That

Graduates Possess the Knowledge, Skills, and Abilities

to Be Successful at the Next Stage of Their Lives.

Student Expectations1. Students demonstrate proficiency and understanding of a rigorous core curriculum.

Students demonstrate proficiency in reading, writing, speaking, and listening. Students demonstrate proficiency in mathematics, including algebra and geometry. Students demonstrate financial and economic literacy. Students demonstrate an understanding of the value of fine and performing arts. Students demonstrate proficiency in technological and information literacy. Students demonstrate proficiency in science, including life, earth, and physical science.

Des Moines Public Schools has focused on

providing more students with access to

college-level Advanced Placement courses.

AP enrollment at DMPS has quadrupled over

the past few years.


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2. Students possess the knowledge and skills to be self-directed and autonomous.

Students demonstrate critical thinking and problem solving skills. Students exercise sound reasoning in making complex choices. Students exhibit creative, innovative, and entrepreneurial thinking. Students understand the attributes of physical and mental well-being.

3. Students have world awareness.

Students learn from and work with individuals representing diverse cultures and religionsin a spirit of mutual respect in school, work, and community.

Students understand the rights and obligations of citizenship at local, state, national, andglobal levels.

Students are actively engaged in community life. Students are exposed to languages and cultures of the world.

Board Beliefs

1. We believe in every child and, no matter their circumstance, will support them in achieving at their highest level. DMPS will work to ensure our students are career and post-secondary education ready.

2. We believe all students will have the best staff working to provide and support their education.

DMPS will be a best place to work, committed to recruiting, developing, retaining, andrecognizing high quality staff in a climate and culture where people are able to do theirbest work.

3. We believe in the full engagement of our parents and community in the support of our students education.

DMPS will commit to the support, training, and tools needed to maximize engagementopportunities with our parents and the entire community.

4. We believe, as a community, in providing the resources necessary to offer PK-12 education of the highest

quality.

DMPS will work, proactively and creatively, with the community to ensure the properinvestment in our commitment to our children.

5. We believe first-rate facilities are essential to quality education.

DMPS is committed to facilities, as centers of our community and neighborhoods,which offer safe, healthy, well-run, and creative learning environments.

6. We believe in a school district that operates with transparency, accountability, and efficiency at every level.

DMPS is committed to operating in an atmosphere of full-disclosure to ensuretransparency, accountability, and efficiency.District Strategies

Des Moines Public Schools has aggressively pursued academic excellence by implementing evidence-

based school improvement strategies in six areas identified as being the most critical to continuous

school system improvement, as published in the 2010 McKinsey & Company internationally-

benchmarked study. The six areas are: building technical skills of teachers and principals, improving


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data systems, assessing student learning, revising curriculum and standards, ensuring an appropriate

reward and salary structure, and facilitating improvement through the introduction of policy

documents and education reform. These six strategies have been shown to serve as the foundation

of continuous improvement for high-performing districts. DMPS has made the commitment to

implement the strategies necessary to support a dynamic journey to excellence. By emphasizing these

evidence-based areas of focus, the district has been able to prioritize work and create actionablesteps that have been implemented in schools. After only one full year of implementation, the district

is realizing improvement in several performance indicators.

Embedded in these strategies is advancing the use of technology; technology must be integrated into

the everyday practice of schools to enhance the student experience. DMPS worked this year to

analyze current technology needs and is taking steps to develop and implement a comprehensive

information technology plan for the district; more information on this initiative is included in the

School Improvement Efforts section.

Evidence-Based School Improvement Strategies

Building

Technical

Skills of

Teachers and

Principals

Improving

Data

Systems

Assessing

Student

Learning

Revising

Curriculum

and

Standards

Ensuring an

Appropriate

Reward and

Salary

Structure

Facilitating

Improvement

Through the

Introduction

of Policy

Documents

and

Education

Reform

Advancing The Use Of Technology:

Enhancing the student experience by integrating technology into everyday instructional practices.

1:1 student to device ratio Visual & audio technology in every classroom Curriculum integrated with technology tools and best practices Technology training embedded in teacher development


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Strategy Build Technical Skills of Teachers and Principals

DMPS Vision DMPS will help teachers and principals not only learn new skills but also develop new

insights into teaching and management strategies they can use in their own practice.

Background

Areas to Provide Support for Beginning Principals:o Creating and maintaining a climate that ensures a safe, cooperative, and productive

learning environment.

o Designing and implementing a vision of success for all students.o Improving instruction to enable teachers to teach at their best and student to learn to

their highest potential.

o Managing resources, data, and process to foster school improvement.o Demonstrating professionalism, integrity, and ethical conduct.

69% of new teachers indicated that their mentor impacted their decision to stay in theprofession. Source: 2012 NTC Induction Survey

Beginning Teacher Retention Rates:Cohort Year Year 1 Year 2 Year 3

2009-10 97% 88% 80%2010-11 91% 81% 80%

2011-12 88% 76% NA

2012-13 89% NA NA

Number of Users of Online Technology Training:Module Number of Users

Basic Technology Training 1,409

Document Cameras and Projectors 949

iPad Basics 1,409

Infinite Campus Gradebook 1,409

Current Progress Redesigned professional development systems to enhance support at the district and

school level, as well as the development of a system for teacher feedback.

Providing 90-minute 1:1 coaching sessions to new teachers on a weekly basis. Providing weekly mentoring and six additional professional development days to first and

second year principals.

Creating online technology and professional development training modules to supportindividual teachers needs in using technology in the classroom.

Next Steps

Access to online professional learning modules to increase individual teacher effectiveness. Adoption of an Instructional Framework to establish a common language of instructionacross the district to support effective teaching in every classroom. Develop training for teachers who aspire to become teacher leaders. Develop leadership pipeline for those who aspire to become principals. Undertake efforts to build managerial skills of principal supervisors who provide on-going

coaching and support to school leaders and reduce the span of control of K-5 Directors.

Provide additional support on areas that can divert focus from school improvement,teaching and learning, and human capital in schools.


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Strategy Improve Data Systems

DMPS Vision DMPS will improve its ability to gather, analyze, and share data on district

performance. Additionally, the district will utilize these data to drive decision making

and resource allocation.

Background 49% of teachers and administrators indicated they would like to use online assessment

within Infinite Campus. Source: 2013 Staff Infinite Campus Survey

72% of teachers surveyed indicated they use a third party gradebook or assessment tooloutside of Infinite Campus. Source: 2013 Staff Infinite Campus Survey

Dashboards enable the district to complete sophisticated education analytics and sharefindings.

Current Progress

Continued collaboration with the Technology department for reporting and monitoring. Re-implementation of Infinite Campus (the districts online student information system) to

better utilize existing systems and integrate data into one system, reducing third partysystems.

Creating data dashboards to monitor school performance in the areas of mathematics,reading, and student behavior for use by building administrators.

Next Steps

Create professional development modules to support the increased use of InfiniteCampus as a data management system.

Facilitate increased access to Infinite Campus data to support teachers in analyzing studentdata to improve instruction.

Create data dashboards for teachers that provide information on all students to helpmanage academic performance and anticipate issues.

Develop common expectations and support structures for the use of data to improveinstruction.


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Strategy Assess Student Learning

DMPS Vision DMPS will develop a system of assessment that accurately measures student mastery

of the Iowa Core Standards, which are essential skills for college and career

readiness.

Background Standards Referenced Grading condensed multiple grading scales that were used across

the district into one common grading scale.

Guiding Principles for Standards Referenced Grading:o A consistent 4-point interval grading scale is used.

o Letter grades, derived from the 4-point scale, are based sole on achievement ofcourse/grade level standards. Student participation, work completion, and ability

to work with others are reported separately using the DMPS Citizenship and

Employability Skills Rubric.

o Grades are based on a body of evidence.o Achievement is organized and reported by standard/learner objectives, which is

converted to a grade.

o Students have multiple opportunities to demonstrate proficiency.o Accommodations and modifications are provided to students with special needs. The DMPS Balanced Assessment System includes a balance of assessment types for all

content areas and assessment forms to monitor individual student progress and to

monitor the system.

o Assessment types include: project based, performance tasks, labs, constructedresponse, multiple choice, etc.

o Assessment forms include classroom unit/daily formative assessment, commonformative assessment, classroom/common summative assessment, district standards

based assessment, external interim assessment, and external summative assessments.

Current Progress

Partial implementation of Standards Referenced Grading in middle schools. Created tiered assessment for middle school courses to determine student performance

levels against existing standards.

Created a Balanced Assessment System to ensure there are multiple opportunities forstudents to demonstrate understanding, better explain the purpose of each assessment

type to various stakeholders, and to better understand who is responsible for creasing

each type of assessment.

Next Steps

Full implementation of Standards Referenced Grading practices in middle schools. Partialimplementation of Standards Referenced Grading practices in high schools (9th grade

courses). Create tiered assessments for high school (9th grade) courses to determine student

performance levels against existing standards.

Build a robust multi-tiered system of support to help students achieve mastery of contentstandards.

Create more opportunities for students to take assessments online. Implement a college and career readiness monitoring system to strengthen student skills

and evaluate the effectiveness of the Core Curriculum.


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Strategy Revise Curriculum and Standards

DMPS Vision DMPS will define what students should know, understand, and be able to

demonstrate by adopting the Iowa Core, and the district will create the

accompanying teaching content.

Background Revised curriculum guides to align with Iowa Core Standards. The previous reading materials were not aligned to the Iowa Core Standards. A new set

of materials was created to align with these standards.

Iowa adopted the Common Core Standards into the Iowa Core on July 29, 2010. 45 states have adopted the Common Core Standards. Source: corestandards.org

Current Progress

Adopted new K-5 literacy materials aligned to the Iowa Core. Adopting new K-5 math materials aligned to the Iowa Core. Revised K-12 curriculum guides in core content areas to align with the Iowa Core.

Focus on analysis of student work to guide instruction.

Next Steps

Continue annual updates of curriculum guides and assessments. Increase knowledge of the use of formative assessments to guide and support instruction. Begin the curriculum adoption process for 6-8 math materials aligned to the Iowa Core. Provide professional development for the implementation of new K-5 math instruction

materials.


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Strategy Ensure an Appropriate Reward and Salary Structure

DMPS Vision DMPS will attract new teachers and retain effective teachers by providing pathways

for career opportunities, offering competitive salaries, and promoting collaboration.

Background

36 hours of collaboration is required outside of the instructional school day for allteachers each year.

10.5 teachers were released to provide full-time mentoring to teachers new to theprofession in the 2013-14 school year. This will be increased to 15 FTE in FY 2015.

65 teachers enrolled in the Alternative Teacher Contract in 2013;76 enrolled in 2012Salary Schedule for 2013 New Teacher Hires:

Contract Years Regular Contract Alternative Teacher Contract

2013-14 $37,790

Teachers start at Step 3 on the salary

schedule and stay on this step for the

first three years of employment

$40,625

2014-15 $41,164

2015-16 $41,711

Current Progress

Implementing the Alternative Teacher Contract to provide additional professionaldevelopment opportunities through the school year and the attainment of a Masters

degree after eight years of employment.

Solicited proposals for partnerships for the Masters program for teachers on theAlternative Teacher Contract.

Completed a comprehensive compensation study by Fox Lawson & Associates tobenchmark district compensation schedules.

Next Steps

Create new opportunities for teacher leadership development. Increase the number of teachers who opt-in to the Alternative Teacher Contract. Create a system to monitor the effectiveness of the Alternative Teacher Contract. Select partners for the ATC Masters program. Utilize results of the Fox Lawson & Associates study to make adjustments to

compensation.

Utilize results of the Fox Lawson & Associates study to re-categorize positions. Utilize results of the Fox Lawson & Associates study to implement a systemic process for

new hires.

Continuous monitoring of position categorization and salary structures.


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Strategy Facilitate Improvement Through the Introduction of Policy Documents and Education

Reform

DMPS Vision DMPS will facilitate the improvement journey by articulating the aspirations,

objectives, and priorities of the reform program

Background 6 DMPS schools have received School Improvement Grants. 397% increase in the number of ELL students in DMPS from 1992 through 2013.

Year DMPS State of Iowa

1992-93 1,101 4,575

2002-03 3,165 13,961

2013-14 5,467 23,820

Current Progress

Supported a bill passed by the Iowa Legislature to provide much-needed additionalsupport for ELL students.

Providing additional support/staff for the ELL program. Monitoring progress of the effectiveness of School Improvement Grants. Initiated peer review to support teachers in meeting their personal professional

development goals.

Next Steps

Provide additional training systems and practices for ELL students and other diverselearners for school leaders.

Complete applications for School Improvement Grants (Cohort 3) to support districtpriorities.

If SIG is funded, provide additional funding to expand the reach of SIG programming forup to three schools.

Create a robust peer review system based on teacher feedback. Identify programming and professional development structures for the lowest performing

schools.


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DES MOINES PUBLIC SCHOOLS: IOWAS LEADER IN EDUCATIONAL INNOVATION

Des Moines Public Schools is home to more than 60 schools and support facilities, totaling nearly 6

million square feet. The district serves more than 32,400 students from preschool through high

school in every neighborhood throughout Iowas capital city.

Des Moines Public Schools may be the largest provider of public education in Iowa, but the district

takes anything but a one-size-fits-all approach to educating students. In fact, families in Des Moines

can find more educational options than anyplace in the state, including:

Advanced Placement.Central Academy, attended by students from 39 central Iowa middleand high schools, is Iowas top AP program, dedicated to providing a challenging

curriculum. The Belin-Blank Center for Gifted Education and Talent Development

placed Central Academy in a class by itself as a college preparatory school. In addition,

DMPS is in the midst of a significant expansion of AP course offerings throughout allfive comprehensive high schools, providing thousands of students access to rigorous and

advanced courses.

International Baccalaureate.Home to the only comprehensive IB program in Iowa, DMPSoffers this world-class educational opportunity at four elementary schools (Hubbell, Park

Avenue, Stowe, and Walnut Street) and five secondary schools (Brody, Goodrell,


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Hoover, Meredith, and Merrill). In addition, Central Academy is the only school in Iowa

to offer the renowned International Baccalaureate diploma.

Career & Technical Institute.Located at Central Campus, CTI offers students learningopportunities in several high-skill areas, including graphic design, broadcasting & film,

culinary arts, fashion, and automotive technology. In addition, DMPS is home to one of

only three high school aviation programs certified by the FAA and has the largest marine

biology program of any non-coastal high school.

Higher Education Partnerships.The proximity to Drake University, Iowa State University,Des Moines Area Community College, and other Institutes of Higher Education have

created numerous partnerships and collaborative efforts that support students, teachers,

and administrators in Des Moines.

Downtown School.The Downtown School, located in a brand new home at CentralCampus, is a national model where students learn in multi-age classes. The school has

been nationally recognized for its innovative education program and as a great option for

working parents. Montessori.Cowles Montessori School is the only public Montessori program in Iowa,

serving students in grades K-8. Students learn in multiage classrooms, and the natural

curiosities of children are exploited to the fullest as they advance at their own pace.

Continuous Calendar Schools.Four elementary schools in Des Moines (Capitol View, RiverWoods, Moulton Extended Learning Center, Downtown School) offer an extended

school year with breaks spread throughout the year to better serve the educational needs

of their students and the scheduling needs of their families.

Traditional Programs.Jefferson and Phillips elementary schools have dress codes andfeature increased emphasis on basic academic skills. The schools also stress personal

respect, responsibility, and discipline as cornerstones of a place where academicachievement can be maximized.

Alternative Programs.Future Pathways, Scavo Alternative High School, Orchard Place,Des Moines Alternative, and Middle School Alternative offer programming for students

who may be struggling with attendance requirements at a comprehensive school or have

other personal issues and need alternative programming.

Ruby Van Meter and Smouse schools.Ruby Van Meter School (serving secondary-agechildren) and Smouse Opportunity School (serving elementary-age children) provide

high-quality, specialized instruction for physically and mentally disabled students.

Des Moines educators and staff are recognized as being among the very best in their fields. Theseare just some of the awards and honors they have earned in recent years:

2013, 2012, and 2010 state finalists for Presidential Award for Excellence in Mathematics andScience Teaching(mathematics).

2013 Trailblazing Teacher by The Center for Green Schools.


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2013 Steve France Honor Award by the Iowa Association for Health, Physical Education,Recreation, and Dance.

2013 Rod Vahl Teacher of the Yearaward by the Iowa High School Press Association. 2013 Outstanding Middle School Art Educatorfrom Art Educators of Iowa.

2013 Outstanding Elementary Art Educatorfrom Art Educators of Iowa. 2013 Green Ribbon School Awardfor Des Moines Public Schools by the U.S. Department

of Education.

2013Excellence in Education Awardpresented by the Iowa State Education Association. 2013 Dr. Robert E. and Phyllis M. Yager Exemplary Teaching Recognition Award from

University of Northern Iowa.

2013 and 2012 Governors Iowa Environmental Excellence Award. 2013 and 2012 finalistsforIowa Teacher of the Year. 2013 and 2012 ENERGY STAR Partner of the Year from the Environmental Protection

Agency.

2013, 2012, 2011, 2010, 2009, 2008, and 2007 Certificate of Excellence in Financial Reportingfrom the Association of School Business Officials Association for the school districts

comprehensive annual financial report.

2013, 2012, 2011, 2010, 2009, 2008, and 2007 Certificate of Achievement for Excellence inFinancial Reportingfrom the Government Finance Officers Association for the school

districts comprehensive annual financial report.

2013 Distinguished Budget Presentation Award fromthe Government Finance OfficersAssociation.

2012 Phyllis Yager Memorial Commitment to Diversity Awardfrom the University of IowaCollege of Education.

2012 honoree as a Champion of Changein education from the White House. 2012 Green Ribbon School Awardfor Central Campus from the U.S. Department of

Education.

2012 Gary Hendrichs Memorial Awardfrom the Iowa School Counselor Association. 2012 finalistforAmerica History Teacherof the Yearfrom Iowa Preserve. 2012Education Support Personnel of the Yearfor the State of Iowa. 2011 Outstanding Secondary Art Educatorfrom the Art Educators of Iowa. 2011 Outstanding Iowa Biology Teacher of the Yearfrom the National Association of Biology

Teachers. 2011 nominee for U.S. History Teacher of the Yearfrom the Daughters of the American

Revolution.

2011Educator of the Yearfrom the Printing Industry of the Midwest. 2011 and 2009James Madison Fellowshipsfor the state of Iowa. 2010 runner-upforExcellence in Education Award.


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2010 Presidential Award for Excellence in Mathematics and Science Teaching(mathematics). 2010James Bryant Conant Award in High School Teaching. 2010 Iowa School Social Worker of the Yearfrom the Iowa School Social Workers

Association.

2010 Iowa Financial Literacy Educator of the Year.

2010 honoree for the Teacher Programfrom Toyota International. 2010Edyth May Sliffe Award for Distinguished High School Mathematics Teachingfrom the

Mathematical Association of America.

2009 Presidential Award for Excellence in Mathematics and Science Teaching(science). 2009 Iowa Industrial Technology Education Middle School Teacher of Excellence. 2009Edyth May Sliffe Award for Distinguished Junior High/Middle School Mathematics Teaching. 2009Art Educator of the Yearfrom the Art Educators of Iowa.


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Enrollment

For more 100 years, Des Moines Public Schools,

accredited by the North Central Association of

Secondary Schools and Colleges and the Iowa

Department of Education, has educated hundreds of

thousands of children in Iowas capital city. Peakenrollment occurred early in the 21st century in 2001-

02, followed by eight years of declining enrollment.

Since 2011, DMPS has experienced an increase in

enrollment, bucking the trend in urban districts

nationwide. Using a simple regression analysis, the

Iowa Department of Education projects district

enrollment for three years beyond the current school year. The Iowa DE projects that the districts

enrollment will surpass the FY 2002 peak in the next few years, as shown in the chart below.

In addition, the district commissioned Ochsner Hare & Hare (Kansas City, MO) to conduct a

Demographic Data and Projections Study and provide projections through 2018. This study projects

that the school age population in Des Moines will continue to increase, as shown in the table below.

The complete study can be found at http://www.dmschools.org/wp-

content/uploads/2012/02/Des-Moines-School-District-Demographic-Data-and-Projection.pdf/.

Demographic Trend Des Moines School District

Population by Age 2000 Census 2010 Census 2013 Estimate 2018 Projection

Age 0 to 4 14,838 16,198 16,314 16,836

Age 5 to 9 13,841 13,928 14,650 15,626

Age 10 to 14 13,029 13,082 13,335 14,663

Age 15 to 17 7,428 7,624 7,617 7,920

Source: Demographic Data and Projections Study, Ochsner Hare & Hare, 2013 Update.

29,000

29,50030,00030,50031,00031,50032,00032,50033,00033,50034,000

DMPS ENROLLMENT

Des Moines Public Schools is one of the

fastest growing school districts in Iowa, with

an enrollment increase of nearly 1,500

students over the past three years.


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In addition to serving students in grades K-12, the district also has a robust Early Childhood

program, providing quality learning experiences to help promote growth of young children and

their families. This is done by offering free, quality preschool with several options to best meet the

needs of families, including a variety of locations, class times, and half- or full-day plans:

Universal Preschool: A state-funded program designed to provide voluntary, universal access tohigh-quality preschool education programs for the states 4-year-olds. This is the largest

DMPS preschool program, serving more than 1,200 children. Classrooms are located

neighborhood elementary schools, DMPS Education Centers, and partner locations.

Head Start: A federally-funded comprehensive child development program that servesincome-eligible children ages 3 to 5 and their families. The Des Moines Head Start program

is a delegate of the Drake University Head Start program and serves more than 400 children.

It is anticipated that 454 students will be served in Head Start in 2014-15.

Early Childhood Special Education (ECSE):Services are available for eligible children three tofive years of age. ECSE staff assist in the identification, assessment, and development of an

Individualized Educational Plan for eligible children. A continuum of services are available,

tailored to meet the individual needs of each student, including integrated classroom settings

with Head Start, Universal Preschool, and self-contained programming. ECSE classrooms

are located in neighborhood elementary schools and DMPS Education Centers.

Additional information about the DMPS preschool program, including a roster of all sites, can be

found at http://www.dmschools.org/departments/office-of-schools/early-childhood-education/.

As the chart below indicates, more than 1,800 students were enrolled in preschool programs through

a variety of funding sources in 2013-14.

Universal

Preschool,

1281

Head Start,

424

Prairie

Meadows,

36

Shared

Visions, 48

Early

Childhood

Iowa, 54

PRESCHOOL ENROLLMENT BYFUNDING SOURCE

2013-14


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District Demographics

Low-Income Students: DMPS is an urban school district that serves an increasingly diverse student

population. Seventy percent of the students in the district are low-income, based on eligibility for

Free or Reduced-Price Lunch (FRPL). The percentage of Des Moines Public Schools students

enrolled in the FRPL program is substantially higher than the state average, and DMPS has the

highest poverty rate in Polk County (based on FRPL enrollment).

20%

30%

40%

50%

60%

70%

80%

FRPL RATES: DMPS vs. STATE OF IOWA

DMPS State of Iowa

DMPS AnkenyWest DesMoines

SoutheastPolk

Johnston UrbandaleBondurant Farrar

NorthPolk

Saydel

Total Enrollment 33,282 10,019 9,357 6,895 6,693 4,177 1,726 1,488 1,378

% FRPL 70.2% 13.4% 31.7% 28.8% 16.9% 25.5% 21.7% 12.3% 56.9%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FRPL ENROLLMENT: POLK COUNTY DISTRICTS 2013-14


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Minority Students: DMPS minority enrollment has steadily increased to 55% of all students. Latino

families are the fastest growing demographic segment of both the city and the schools.

English Language Learners: In the last decade, DMPS has experienced a 74% increase in the number of

students enrolled in English Language Learner (ELL) classes and a 424% increase in 20 years.

DMPS students speak more than 80 different native languages, and currently 19% of the entire

student body is ELL. Eighty-seven teachers, 44.5 bilingual community outreach workers, and six

additional support staff are necessary for the ELL program to operate. ELL sites are located in five

high schools, eight middle schools, 31 elementary schools, three Intensive English Language

Centers, and at Future Pathways. Funding for the ELL program is provided by the State through

supplemental weighted funding, and the district supports legislation to extend the weighted funding.

White

45.0%

Latino

23.5%

African

American

17.5%

Asian

6.9%

MultipleRaces

6.4%

NativeAmerican

0.5% Pacific

Islander

0.2%

ENROLLMENT BY RACE/ETHNICITY

2013-14

-

1,000

2,000

3,000

4,000

5,000

6,000

ENGLISH LANGUAGE LEARNERS


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Special Education:Approximately 16% of DMPS students receive Special Education (SPED) services

for disabilities ranging from mild behavioral or learning disorders to severe and profound

disabilities. Enrollment in Special Education continues to be stable, as shown on the chart below.

The district will continue to provide quality services that families and students with disabilities have

come to expect from the district and as required by law. The district also receives weighted

enrollment funding for SPED students.

4,500

5,000

5,5006,000

6,500

7,000

7,500

8,000

8,500

SPECIAL EDUCATION ENROLLMENT

SPED-weighted enrollment SPED-headcount


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A Focus on Progress

SCHOOL IMPROVEMENT EFFORTS

Educational strategies implemented by the district are showing success toward improving studentachievement. While all resources are directed at school improvement, several important programs

and funding streamsincluding the Dropout Prevention Tax Levy, School Improvement Grants,

the High School Graduation Initiative Grant, the Instructional Framework, Standards Referenced

Grading, and K-5 Digital Adoptionare highlighted in this section.

Dropout Prevention Levy

State law allows districts to levy an amount equal to 5% of the cost per student for each student

enrolled in the district. The board has approved the maximum levy, which is anticipated to generate

$10.1 million for FY 2015. The district uses this funding to work with students at risk of dropping

out and re-engaged students. The funding is used to implement multiple dropout preventionstrategies and tools, including:

Early Indicator System DMPS has implemented an Early Indicator System (EIS) to help identify

students at risk of dropping out. An EIS Report is run every six weeks and tracks attendance,

grades, achievement, and discipline/behavior issues to identify students who exhibit dropout

indicators. Academic and/or social-emotional intervention strategies for identified students are

designed, based on the information from the EIS Report, to support or improve the students

academic performance in school. EIS data is re-analyzed every six weeks by Learning Services

staff to identify students in need, to determine the degree to which interventions are helping

students succeed, and to identify additional or alternative services from which the student/family

might benefit.

Academic Support Labs An extensive review of student progress toward graduation indicated

that a significant percentage of students in grades 9-12 were off-track or under-credited for

graduating with their four-year cohort. To address this issue, the district designed and

implemented Academic Support Labs in the five comprehensive high schools (East, Hoover,

North, Lincoln, and Roosevelt) to target students identified by the EIS as at risk of dropping

out. In the labs, students work toward earning credit toward graduation in an alternative

classroom using online and project based learning pathways. The Academic Support Lab

program expanded to Scavo Alternative High School in FY 2014. The teaching staff in the labs

are funded through Dropout Prevention, United Way of Central Iowa, and High School

Graduation Initiative Grant.

SUCCESS The SUCCESS Program is a school-based youth services program that provides

year-round services to meet students social, emotional, and behavioral needs to reduce/remove

barriers that hamper academic success and increase the risk of dropping out. SUCCESS Case

Managers identify students at risk of dropping out of school through the Early Indicator System.


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Students who meet a minimum of two indicators on the dropout matrixfailing grades, poor

attendance, lack of connection to school, behavior problems, or low achievementare targeted

for intervention with the SUCCESS Program. Services are wrapped around, and participating

students and families are provided with case management services (e.g. assistance securing food,

shelter, clothing, or medical services), are referred to community partners (e.g. mental health

services), and are provided classes to meet identified needs (e.g. development of parenting skillsor social skills). Based on an educational risk-factor model, the school-based SUCCESS Program

removes barriers for children and families in need. SUCCESS collaborates with more than 20

agencies to provide a wide variety of support services to children and families. In all cases, the

collaborations serve to help remove barriers to a childs success in school.

Other dropout prevention strategies funded from the Dropout Prevention Levy include the re-

engagement/credit recovery program, middle school intensive reading, and literacy support in the

elementary schools.

School Improvement GrantsSince 2010, the Iowa Department of Education has awarded School Improvement Grant (SIG)

funding to six DMPS schools. Funding ended in FY 2013 for North, Hoyt, Weeks, and Edmunds.

The funding for two schools, Harding Middle and Findley Elementary, began in FY 2012 and

continues through FY 2014:

School FY 2012 FY 2013 FY 2014 FY 2015

Harding Middle 977,584 944,730 938,182 NA

Findley Elementary 784,641 781,572 778,503 NA

Total $5,312,225 $4,407,335 $1,716,685 $0

SIG funding support a range of programming and initiatives at schools to help raise student

achievement. Some examples include:

Ongoing, high-quality professional development for teachers. Using data to identify and implement research-based instructional interventions. Using student data to differentiate instruction to meet the academic needs of individual

students.

Establishing schedules and strategies that provide increased learning time.

School FRPL

Average

3 yearProficiency

2010-2012

ChangeProficiency

2010-2012

Average

3 yearProficiency

2011-2013

ChangeProficiency

2011-2013

Harding Middle 93.9% 47.34% (9.28%) 46.64% (2.55%)

Findley Elementary 93.4% 62.96% 15.48% 70.36 12.70%


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The Iowa Department of Education is projected to award

three additional School Improvement Grants for Iowa

schools. A grant would be a three-year grant, with only

first-year funding guaranteed. Initial funding would be

available for use during the 2014-15 school year.

High School Graduation Initiative Grant

The federal government awarded the district $6.1 million

to be used over five years to increase the graduation rate,

while at the same time decreasing the related dropout

rate. DMPS is currently in year four of this grant project.

Project schools include East, Hoover, Lincoln, Roosevelt,

and Scavo high schools and McCombs and Meredith

middle schools. The intent of the grant is to expand upon

current effective educational programming and develop

and implement new educational programming, aimed at increasing the district graduation rate.Strategies being used by the seven schools include:

Staffing for academic support labs; school improvement leadership; additional assistance inliteracy, math, and technology; social/emotional support staff; and opportunities for

extending learning after-school, on weekends, and during the summer.

Conference attendance, site visits to exemplary schools in other districts, and otherprofessional development opportunities.

Student transportation so students can engage in community-based learning opportunities,extended learning opportunities, and college visits.

Curriculum-based materials, technology upgrades, writing skills, library adoptions, projectbased materials, differentiated instruction, and assessment software.

Instructional Framework

Implementation of an Instructional Framework is critical to strengthening core instruction. An

Instructional Framework provides a common definition of effective instruction, as well as

introducing a performance scale related to the instructional practices of teachers to help inform their

skill development. DMPS has worked with the Marzano Research Laboratory to develop and begin

to implement an Instructional Framework for Des Moines.

Standards Referenced GradingCore instruction will also be strengthened through the implementation Standards Referenced

Grading (SRG) practices in Des Moines. SRG gives students and teachers clear and consistent

expectations, promotes differentiation, and provides a platform for communicating progress to

stakeholders. Implementation of SRG began with middle schools in Fall 2013 and will expand to 9th

grade in Fall 2014. DMPS will provide coaching and support to build connections between the

Instructional Framework and SRG, building teacher capacity to improve student performance.

Des Moines Public Schools has seen a

steady increase in the percent of

students who graduate, which is at

its highest level since Iowa began using

its new graduation rate formula five

years ago.


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K-5 Digital Adoption

Des Moines Public Schools will upgrade K-5

mathematics instructional materials for the 2014-15

school year. The 17 members of the selection committee

voted to adopt the Houghton Mifflin GO Math

comprehensive mathematics program that offers manyopportunities to utilize technology. GO Math provides a

host of digital resources to meet the needs of teachers

and students. A completely digital path engages students

with exciting content and provides rich support for

teachers in a 21st-century learning environment.

The district will provide an interactive whiteboard and

six digital devices for each K-5 core content classroom to

support the implementation of GO Math. The intention

is to provide elementary students with a blended learning experience. Blended learning involves aninstructional shift in some portion of the day to an online environment. This shift is intended to

make learning more productive by giving teachers better tools, more time, and informative data.

Goals for this implementation include:

1. Support students in obtaining the Common Core Mathematics Standards throughtechnology based instruction.

2. Utilize the GO Math materials upgrade to design a blended learning environment thatprovides teachers with better tools, more time, and informative data.

3. Provide students with personalized instruction, practice, and formative feedback thatsupport a competency based system.

Technology Blueprint

Des Moines Public Schools is in the process of revising and implementing a comprehensive

information technology plan for the district. Information technology must continuously be aligned

with the districts vision for instruction, immediate instructional needs, and business needs.

Education in Des Moines is entering an exciting timea time of great change and challenge that

focuses on student-centered decision making, blended learning, mobile technology, and flipped

classrooms. In the past, many school districts acquired technology systems for specific functions in a

piecemeal way, rather than in a coordinated effort that allows for across-the-board integration and

consistency. The ultimate goal of a coordinated technology effort is to improve student learning andoperational efficiency in Des Moines Public Schools. DMPS will work with CELT to plan, design,

and implement a cutting edge, integrated information technology system based on an enterprise-

wide approach to information technology.

Des Moines Public Schools is home to

some of the top educators in the state

and nation, including recent finalists for

Iowa Teacher of the Year and the

Presidential Award for Excellence in

Math and Science Teaching.


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IMPACT ON STUDENTS

Graduation and Dropout Rates

School improvement efforts across the district are having a real impact in Des Moines Public

Schools. Beginning with the graduating class of 2009, graduation rates in Iowa have been calculated

with a new formula established by the U.S. Department of Education. Unique student identificationnumbers are assigned to ninth-grade students, allowing school districts to carefully account for

students as they move through high school. At the state level, the method helps determine when a

student graduates, even if the student has moved to a different district in Iowa during high school.

Des Moines Public Schools has achieved increases in both the 4-year and the 5-year graduation

rates, as well as a decrease in the dropout rate.

The graduation rate for Des Moines has increased nearly seven percent since the State of Iowa first

started using this formula for the Class of 2009. DMPS has also seen a 6 percentage point increase in

the five-year graduation rate since 2009. The Des Moines Public Schools Class of 2013 had a

graduation rate of 79.36%, an increase of 0.21% over the previous year and the highest since Iowabegan using its current graduation rate formula in 2009. DMPS also saw an increase in the five-year

graduation rate to 82.89% for the Class of 2012, up from 81% for the Class of 2011.

Des Moines Public Schools saw a decline in the dropout rate last year. The grade 7-12 dropout rate

for 2013 was 4.16%, down from 4.73% the previous year. The grade 9-12 dropout rate for 2011-12

was 6.3%, down from 7.05% in 2012 and the lowest dropout rate at DMPS under the new formula.

DMPS Dropout Rate 2008-09 2009-10 2010-11 2011-12 2012-13

Grade 7-12 Rate 5.10% 4.80% 4.80% 4.73% 4.16%

Grade 9-12 Rate 7.60% 7.00% 7.20% 7.05% 6.26%

0%

20%

40%

60%

80%

100%

Class of 2009 Class of 2010 Class of 2011 Class of 2012 Class of 2013

FOUR AND FIVE YEAR GRADUATION RATES

Four-Year Rate Five-Year Rate Linear (Four-Year Rate)


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Grades 3-5 Grades 6-8 Grades 9-11

2012 60.2% 56.1% 60.1%

2013 61.3% 57.6% 60.3%

0%

20%

40%

60%

80%

100%

MATHEMATICS: PERCENT PROFICIENT ON THE IOWAASSESSMENTS

Student Proficiency and Growth on the Iowa Assessments

DMPS experienced an overall increase in proficiency in mathematics on the Iowa Assessment at all

grade levels from Spring 2012 to Spring 2013. Elementary grade levels (grades 3-5) experienced a

1.1% increase in mathematics proficiency rate. Middle school grade levels (grades 6-8) experienced

the largest increase in proficiency with a 1.5% increase in mathematics proficiency rate. High school

grade levels (grades 9-11) experienced a 0.2% increase in mathematics proficiency rate.

Des Moines Public Schools also experienced an overall increase in proficiency in reading on the

Iowa Assessment at all grade levels from Spring 2012 to Spring 2013. Elementary grade levels

(grades 3-5) experienced a 1.1% increase in reading proficiency rate. Middle school grade levels

(grades 6-8) experienced a 0.6% increase in reading proficiency rate. High school grade levels (grades

9-11) experienced a 1.1% increase in reading proficiency rate.


2012 59.1% 47.9% 63.9%

2013 60.2% 48.5% 65.0%

0%

20%

40%

60%

80%

100%

READING: PERCENTPROFICIENT ON THE IOWA ASSESSMENTS


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Iowa Assessments enable growth to be measured by using

vertically scaled (or articulated) scores, called standard

scores. These scores plot out all students, regardless of

grade level, on a continuum of student achievement.

Standard scores describe a students location on an

achievement continuum. Using standard scores, theprogress students make from year to year is evident.

Developers of the Iowa Assessments have established

typical growth for students, which is the amount the

average student increases in standard score points from

year to year. The percent of students who are indicated as

making typical growth on the charts below are the students

who have met or exceeded the standard score gain from

year to year needed for typical growth. By definition, 50%

of students nation-wide make typical growth each year.


2013 48.2% 55.0% 55.4%

0%

20%

40%

60%

80%

100%

MATHEMATICS: PERCENT OF STUDENTS MAKING TYPICALGROWTH ON THE IOWA ASSESSMENTS


2013 53.4% 47.7% 61.5%

0%

20%

40%

60%

80%

100%

READING: PERCENT OF STUDENTS MAKING TYPICALGROWTH ON THE IOWA ASSESSMENTS

Des Moines Public Schools provides

students with a range of activities

outside of the classroom. The East

Scarlets has competed in the state girls

basketball championship four out of

the past five years.


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Fiscal Profile

BUDGET OVERVIEW

The schedules below delineate the districts revenues and expenditures for all appropriated funds.

DES MOINES PUBLIC SCHOOLS

2014 - 2015 BUDGET

SUMMARY ALL FUNDS

FY 2012 FY 2013 FY 2014 FY 2015

Actual Actual Re-estimated Budget

Revenues

Property Taxes$ 116,058,903 $ 113,584,295

$ 118,391,468 $ 114,763,973Utility Replacement Tax 4,291,855 4,269,105 3,830,291 4,203,470

Mobile Home Taxes 132,227 123,031 115,769 113,619

State Foundation Aid 163,593,289 174,578,921 186,175,860 196,425,902

AEA Flow Through 11,699,768 12,235,407 13,086,762 14,889,851

Teacher Quality Act 21,215,397 22,002,282 22,772,107 23,867,136

Universal 4 Year Old Preschool 3,926,903 3,342,557 3,920,501 4,303,416

Other State Sources 2,132,629 1,946,191 2,635,775 1,467,051

Chapter 1 Grants 15,992,540 12,272,208 10,111,267 9,500,000

Other Federal Sources 44,661,995 39,034,833 36,813,269 35,673,326

Tuition/Transportation Fees 6,750,348 6,219,856 5,975,000 5,975,000

Earnings on Investments 62,636 376,321 234,980 246,302

Student Activities 2,787,497 2,914,551 2,886,900 2,886,900

Nutrition Program Sales 2,894,345 2,950,693 3,060,046 2,276,041

Sales and Use Tax 26,045,238 27,364,977 26,496,978 28,184,046

Other Revenue from Local Sources 18,967,728 16,740,858 17,008,464 16,125,100

Revenue from Intermediary Sources 380,240 540,171 555,721 555,000

Other Financing Sources 1,392,822 655,769 553,000 553,000

General Long-Term Debt Proceeds 75,223,759 - 70,000,000 -

Proceeds from Fixed Asset Disposition 21,150 107,648 12,000 12,000

Transfers In 6,008,000 12,340,673 13,313,057 18,062,619

Total Revenues 524,239,269 453,600,346 537,949,216 480,083,752

Continued on next page


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Continued from previous page

Expenditures

Instruction 242,646,198 248,850,561 259,497,223 265,677,091

Student Support Services 20,447,634 20,677,284 21,601,039 22,029,894

Instructional Staff Support 11,497,451 12,199,079 12,731,850 12,986,487

General Administration 4,691,758 5,325,980 5,610,016 5,714,354

Building Administration 18,905,852 19,140,850 19,997,791 20,394,536

Business and Central Administration 11,001,226 9,164,635 9,564,348 9,755,315

Plant Operation & Maintenance 32,987,675 34,137,543 36,465,459 36,895,627

Student Transportation 10,984,864 11,176,088 11,687,080 11,927,166

Non-Instructional Expenditures 19,701,236 21,221,876 22,436,485 23,536,629

Facilities Acquisition & Construction 45,240,752 53,511,190 46,455,000 46,510,000

Debt Service 6,008,000 12,158,244 12,631,366 18,062,619

Other Financing Uses - - - -

AEA Support 11,699,768 12,235,407 13,086,762 14,889,851

Transfers Out 6,008,000 12,340,673 13,313,057 18,062,619

Total Expenditures 441,820,414 472,139,410 485,077,476 506,442,188

Excess of Revenues over

Expenditures 82,418,855 (18,539,064) 52,871,740 (26,358,436)

Beginning Fund Balance 109,889,379 192,308,234 173,769,170 219,720,911

Ending Fund Balance $ 192,308,234 $ 173,769,170 $ 226,640,910 $193,362,475


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SHORT-TERM BUDGETARY FACTORS

Though the national and state economy continues to grow, activity remains modest. The economy

has yet to fully overcome the legacies of the dramatic downturn and financial crisis that began in

2008, and while Iowas economic recovery stands on firmer ground today than it did after the start

of the economic collapse in 2008, the lingering impacts can still be felt across the state. According toa report issued by the Iowa Legislative Services Agency (LSA), Iowa general fund tax receipts totaled

$3.1 billion between July 1 and December 31, 2013. This was down 1.5% compared to the same

period a year ago. Additionally, the LSA reported that December 2013 net general fund revenue was

$98.3 million, which is 17.4% lower when compared to December 2012 (LSA, January 2014).

However, during the height of the recession, the unemployment rate topped 6.4%. Iowas seasonally

adjusted unemployment rate was 5.0% December 2012 and fell to a post-recession low of 4.2% in

December 2013, a positive sign of recovery (Iowa Workforce Development, January 2014).The

restructuring process from the credit and housing boom and bust will continue to take time. A full

recovery continues to be hindered by several factors, such as household balance sheet, repair, and

labor market restructuringall of which add to the high levels of uncertainty regarding futureeconomic activity. Many businesses and households are holding back on spending, investing, and

hiring decisions. The district continues to recover from the most challenging economic conditions in

more than a generation.

For several years, the state legislature did not established State Foundation Aid and Allowable

Growth in a timely manner. However, the legislature set Allowable Growth for FY 2014 and FY

2015 in the 2013 legislative session. This enabled the district to make more accurate assumptions for

FY 2015. However, there is no indication that the legislature will set Allowable Growth for FY 2016

of later in the 2014 legislative session.

State Foundation Aid is funding paid by the state to school districts to provide equitable funding on

a per pupil basis. It is a significant component of the District Combined Cost, the first major

element of a districts Spending Authority. The State Foundation Aid formula also funds other

special programsalso known as weighted funded programsbased on enrollment adjusted by a

weighting factor, then multiplied by the cost per student. These programs include Special Education,

Shared Programs, English Language Learners, Gifted and Talented, At-Risk programming, and

Home School Instruction.

This budget document, similar to prior years, incorporates financial assumptions. Assumptions are

used to ensure that revenues and expenditure projections are credible. The assumptions highlighted

below, as required by Board adopted Management Limitation 2.5(4), were used to develop the

Certified Budget:


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Topic Assumption for FY 2015

Law; Policy Governance;Board Budget Parameters

Will follow budget law, policy governance management limitations, andboard budget parameters.

Generally AcceptedAccounting Principles

Budget will be in accordance with Generally Accepted AccountingPrinciples.

Allowable Growth (AG) 4% AG the increase in the cost per student for current year.

Certified Enrollment 32,413; 351 more students, which is a 1% increase over the prior year.

Cost per Student $6,434 a 4% increase over the prior year and fully funded.

Property valuations Estimates indicate general taxable property valuations will decrease1.1% and PPEL taxable valuations will decrease 1.8%.Final valuations not available until June 2014.

State property tax relief Will continue to receive increased state aid to replace property taxesand thereby reduce property taxes applicable to the district, per statelaw.

Cash Reserve Levy Recommend maintaining current level.

Statewide Penny Will parallel modeling and Department of Revenue projections.

Short-term investment rates Forecasted to be less than 1% in FY 2015.

State Aid - Certified Budget Based on receipt of full funding of each student at a district cost perstudent of $6,434, a 4% increase.

Weighted funding Funding is based on weighting factors as defined by law for HomeSchool, ELL, SPED, At-Risk programming, and Regional programming.Does not include preschool.

Certain State grants Funding for state grants is same as the current year.

Microsoft Settlement funding Will be spent on various technology initiatives.Funding ends 6/30/2014; however, the last of the reimbursement claimswill be received in FY15.

Compensation Includes a conservative estimate of the possible results of collectivebargaining.Health insurance premiums will increase 4%. Compensationsalaries

and benefitsin the General Fund represents 83% of overallexpenditures.Impact of transitional fees associated with the Affordable Health Carecost.

Utilities costs Energy conservation efforts will continue to offset increased utilitycosts; however, cannot allow for unknown weather factors.

Early retirements 100 early retirement slots were opened, 99 filled for FY 2014 and anadditional 100 slots were opened for FY 2015.The Board will evaluate the early retirement program for continuancein FY 2016.

Balanced budget Resources will cover expenditures, as required by law.


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The district developed the following balanced budget scenario to aid in budget planning.

Calculation/Component

DescriptionBudget @ 4%

AllowableGrowth

District Cost Per

Student

Amount set by the state sets the cost per student at

prior year + Allowable Growth $ 6,434

x EnrollmentDistrict enrollment on October 1, 2013;351 students more than October 1, 2012

32,413.20

= FY 2015 DistrictCombined Cost

Equal to cost per student x enrollment 208,546,529

- FY 2014 DistrictCombined Cost

Prior years cost per student x prior year enrollment -198,432,337

= Increase (Decrease) inDistrict Combined Cost

Assumes full funding of the proposed AllowableGrowth and increased enrollment

10,114,192

+ Funds for SpecialPrograms

Some state educational programs require state fundingbe matched with state foundation aid ex. SPED; ELL;Gifted and Talented.

-685,554

= Increase (Decrease) infunding

Also commonly referred to as New Money or(Reduction in New Money)

9,428,638

+ Built in Revenuechanges

Decreased tax revenue due to decreased valuations;and adjustments to the cash reserve levy, adjusted fortax relief built into state foundation aid formula

-1,777,874

- Built in Expenditurechanges

Compensation increases, inflation for utilities, supplies,equipment, etc.

-8,797,642

+ Other ongoing savingfrom previous years anduse of additional fundingsources

Cumulative on going savings from previous reductionsin budget and use of other funding sources such asreserves and deferred revenues.

3,205,282

= Revenues in excess ofExpenditures Budget Gap amount revenues exceed expenditures 2,058,404

- AdditionalExpenditures

Anticipated district-recommended expenditures -2,058,404

= A Balanced Budget Expenditures = Revenues $ 0


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PRIORITIES & ISSUES

School District Priorities

The School Board set the following parameters for FY 2015 budgetary planning:

Meet and stay within Board Management Limitations.

Maintain financial health; provide a balanced budget. Keep DMPS Student Expectations and Board Beliefs at the forefront. Review status of all levies; make strategic adjustments as needed. Seek input from the Citizens Budget Advisory Committee (CBAC) on budget priorities. Seek input from the Employees Budget Advisory Committee (EBAC) on budget priorities. Continue to seek operational efficiencies and improve operational effectiveness. Continue to focus on drop-out prevention and graduation rate improvement strategies. Focus on strategies to close the achievement gap. Focus on parent engagement strategies that promote the belief in parents/families as assetsto improved student achievement and as partners/co-teachers in their childs educational

experience.

Improve ELL programming. Continue to assess needs and evaluate programming to:

o Create innovative programs to meet unmet needs.o Maintain or grow programs that are demonstrating success.o Strategically abandon programs that do not demonstrate value.

The district plan for FY 2015 is tied to the Board Budget Parameters, as well as the CBAC and

EBAC recommendations, which are included in the Appendix. In addition, the budget will fundeffective programming and initiatives aimed at improving student performance, growth, and

achievement. Within the FY 2015 budget, the district will:

Maintain all programs and services. Hire 30 FTE to be allocated by the staffing formula district-wide. Transfer funds, amount yet to be determined due to final budget approvals and availability,

from unrestricted funds to committed funds for technology improvements.

Invest $8 million in FY 2014 and FY 2015 on a K-5 digital adoption. Invest $1.5 million to further develop the district Wellness Program with the expectation of

a $3.24 return on each dollar spent.

Invest $500,000 to further develop the middle school activities program. Set the Solvency Ratio at 15% Target Rate. Continue to seek operational efficiencies and savings district-wide.


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Update on Key FY 2014 Priorities

Focus on K-3 Education:The district has/will continue to make improvements in the K-3 arena:

Of the 119 teachers that were added in FY 2014, 76 were in elementary schools. Selected schools were targeted for a Reading Recovery program for K-2 students, based on

current reading assessments. System 44 was piloted as a Tier 3 intervention for students in grades 3-5 who have

significant gaps in their foundational skill knowledge.

Reading and math support positions were incorporated into the classroom. Selected the new elementary math adoption, including digital components.

In FY 2015, the district will continue to support K-3 education by continuing the efforts of FY 2014

and accomplishing the following objectives:

Fully implement the new math adoption and install all digital components. Adopt the FAST Assessment, which is a new state assessment for reading, for K-3 students. Implement a comprehensive counseling program, aligned with the ASCA Model, to promote

academic and social-emotional development of students in eight PLAS elementary schools.

Build Sustainable Staff back into Buildings:In FY 2014, the district restored the following positions:

119 teachers 64 middle school coaches (stipend positions) 19 specialists (majority directly involved with education) 1 administrator to oversee the Office of Schools

During FY 2015, the district plans to restore up to 30 positions, with many directly impacting

classrooms. The district is also looking to expand middle school activities.

Invest in Technology to Improve Instructional and Business Functionality:The district made several

investments in technology infrastructure in FY 2014. Investments included hardwaresuch as

computers, digital projectors, and security camerasto update classroom access to technology and

to improve building safety; softwaresuch as Achieve 3000 and System 44to improve education

interventions; and solutionssuch as the employee reimbursement web form, dashboards, and the

student activities moduleto improve organizational efficiency and facilitate more effective

communication. The district will maintain these efforts and continue to improve technology

hardware, software, and solutions in a comprehensive method, using the technology blueprint.

Improve Internal and External Communication:A concentrated effort was put into place to do a better job

of communicating to parents, taxpayers, and other constituents through billboard messaging,

developing a smartphone app, and enhancing the districts TV station and Web site. The Human

Resources department is also transforming to provide better communication for staff. The district

will continue to undertake efforts to improve communication.


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Unspent Spending Authority Ratio:The unspent spending authority ratio is a measure of the districtsunbudgeted authorized spending capacity (not cash reserves) and is defined as the districts unspent

spending authority divided by the districts maximum budget authority. It should be noted that

reaching the maximum budget authority level would require the board to authorize and levy

additional property taxes. The IASB recommends this ratio be in the target range of 10 - 20%. The

Board adopted guidelines in FY 2012 setting the minimum Unspent Spending Authority Ratio at

10%. The unspent spending authority balance ratio for FY 2013 was 17.2%, up from 17.0% for the

prior year. However, it is anticipated that the final unspent spending authority ratio for FY 2014 will

be lower than FY 2013, due to declining federal revenues.

0%

5%

10%

15%

20%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SOLVENCY RATIO

Solvency Ratio Target Solvency Ratio

$0

$10

$20

$30

$40

$50

$60

$70

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Inmillions

SPENDING AUTHORITY / CASH RESERVES

Cash Reserves Spending Authority (FY 14 unaudited) Target Spending Authority


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Staffing Levels and Employee Compensation:Staffing is a top priority to improve education. Purposeful,

long term planning is necessary in order to build and maintain the additional classrooms and staffing

levels long term. Compensation costs represent 83% of the districts General Fund budget.

Components of compensation include salary (including base pay, steps, and longevity), teacher salary

supplements, health insurance, payroll taxes, retirement (IPERS or DMTRS), dental and vision

insurance, and long-term disability. Ideally, staffing would be in the range of 75 - 82% of totalGeneral Fund expenditures. Accordingly, the district is investing $1.5 million in initiatives to address

health care costs.

As the chart below demonstrates, the compensation package for DMPS teachers was slightly above

the statewide average package in FY 2008, FY 2009, FY 2010, FY 2013, and FY 2014. (Given

teachers comprise 50% of the DMPS workforce, that employee group is used for illustration

purposes.) Also included is the Allowable Growth, which is provided for demonstration purposes.

Compensation Package: Teachers (DMEA)

Year State Average District Package Allowable Growth

2008 4.75% 4.77% 4.00%

2009 4.50% 5.00% 2.59%

2010 3.59% 3.65% 2.00%

2011 2.87% 1.98% 2.00%

2012 3.33% 3.11% 0.00%

2013 3.71% 3.95% 2.00%

2014 3.90% 3.98% 2.00%

2015 TBD 4.09% 4.00%

While adequate compensation is always the minimum standard, it is difficult to sustain when state

funding is insufficient and grows at historically low rates. In recent years, negotiated increases in

compensation packages have been more than the increases in State Foundation Aid, measured by

the rate of Allowable Growth, thus creating a growing budget gap from one year to the next.

3.55%

2.40%

4.30%4.70% 4.77%

5.00%

3.65%

1.98%

3.11%

3.95% 3.98% 4.09%

2.00% 2.00%

4.00% 4.00% 4.00%

2.59%2.00% 2.00%

0.00%

2.00% 2.00%

4.00%

0%

1%

2%

3%

4%

5%

6%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ALLOWABLE GROWTH vs. COMPENSATION SETTLEMENTS

DMEA Teacher Settlement State Allowable Growth


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Valuations and Tax Rate:The Polk County Assessor is anticipating overall property assessments used

to determine tax collections for FY 2015 will decrease. Total property valuations multiplied by the

tax rate equals the total taxes assessed. The rollback percentage applied to residential property may

help; however, taxes garnered from commercial property may significantly decrease due to the

decrease in valuations in the future.

Property Tax Rates & Valuations

FY 2014 FY 2015

Regular Valuation (with Utilities) 2.37% -1.07%

TIF Valuation 4.71% -7.64%

Regular and TIF Valuation 2.61% -1.75%

GENERAL

Regular Program 9.82952 9.67930

Instructional Support 1.73065 1.79157

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