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Superintendent's Recommended

2013 Budget Proposal

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State of Region 15Systemic Changes Ahead

• Midst of systemic enrollment contraction K-8• Region 15 Enrollment and Facilities Study Task Force

– Five-ten year plan that ensures sufficient and suitable facilities, to serve the needs of every child in the regional school district while maintaining the flexibility necessary to accommodate changes in education policy, economic conditions and enrollments.

– The Task Force will explore various options to achieve this mission, including redistricting and/or reconfiguration of the elementary and middle school systems to align enrollment and program needs with appropriate spaces.

• Ramping up Concept Based Instruction• Transitioning to Common Core State Standards• Region 15 Strategic Plan Mid-Course Analysis• Gov. Malloy’s Education Reform Proposal

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State of Region 15

• Over the next 18 months, the BOE will determine the best systems pathway to support Pre K - 12 learning– while that process is underway the focus

needs to be on those aspects of public education that are least sensitive to enrollment fluctuations and reconfiguration models

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2012-13 Superintendent’s Budget Proposal

• Supports:• Improvements to the K-12 academic support

infrastructure• Improvements to the Secondary Special Services

Support infrastructure• Improvements to the Secondary Media Center

infrastructure for students and staff• Facility improvements that support instruction

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2012-13 Budget Proposal• Does not support:

• Elementary Technology Program• Expanded World Languages in Region 15• MS Health Program• Class Sizes to have smaller classes

– Not because any of these are bad ideas– Because we need to establish an infrastructure that supports the all children will

learn mission of public education, first!– Aforementioned are not systems initiatives---yet – Transitioning these to systems initiatives requires we ask a number of strategic questions:

1. How does each contribute to enhancing a child’s 21st Century skill set?2. How do we measure success of these programs?3. Which topics will be covered, when, why, to what end?

– Part of what it means to be fiscally responsible is making sound value assessments knowing when to limit a program and knowing when to support modifications or introduce new ones—education’s version of ROI

– BUDGETING IS A VALUING EXERCISE

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Rationale for the 2013 Budget Proposal• The district must meet its moral and ethical obligation

to children: all children will learn. – Providing the opportunity alone is no longer good

enough

• The district must sharpen its focus to teaching and learning with an emphasis on Common Core State Standards providing our graduates with the fundamental 21st century skills so they are both enlightened and globally competitive citizens

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Budget Construction

Consideration of national, state, and local variables

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The US Economy– October 2009 unemployment peaked at 10.1%– Unemployment rate in 2011

• Started 2011 at 9.1%• Ended 2011 at 8.5%• 2011 created 1.6 million new jobs• Beginning 2012 at 8.3%• 243,000 new jobs in January 2012

– Historical context• In 2009 US lost 5 million jobs• Additional 6 million jobs needed to reach Dec. 2007

– 2012 Front wheels of the landing gear ready to clear the tarmac?

• Economist forecast the addition of 2 million more jobs• Turning Point in the Economy • Meaningful Economic Recovery

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Consumer Price IndexCalendar Year CPI % Change

2006 201.6 3.2%

2007 207.3 2.8%

2008 215.3 3.8%

2009 214.5 -0.4%

2010 218.1 1.6%

2011 225.7 3.0%

Jan 2012 Up 0.2 %

CPI rose 3.0 percent in 2011 after a 1.5 percent increase in 2010. This was the largest December-December increase since 2007.

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Social Security Increases Compared to BOE Budgets

Year Annual Average BOE Approved BOE Approved

2007 3.3% 4.74% 4.74%

2008 2.3% 3.93% 3.93%

2009 5.8% 1.11% 1.11%

2010 0.0% 2.15% 2.15%

2011 0.0% 0.00% 0.00%

2012 3.6% 1.00% 3.17%

Average 2.5% 2.15% 2.5%

Medicare Part B also increased by 3.6% from $96.40 to $ 99.90

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Connecticut

2012 The Year of Education Reform

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Friends, After decades as a national leader in education, Connecticut has more recently lost its edge. Our students’ overall performance has stagnated, and our achievement gap — the worst in the nation — has persisted. With our public schools in this condition, we cannot fulfill our moral obligation to provide our children with the opportunity to succeed. Nor can we ensure they have the skills necessary to match the needs of Connecticut’s employers, which means we can’t sustain an economy in an era in which fielding a globally competitive workforce is increasingly paramount. These facts are incontrovertible. But we can revitalize our public schools — provided we adopt a real sense of urgency and a willingness to embrace change. To that end, this document is a roadmap for the many measures we must take in 2012 to restore public education in Connecticut to a position of excellence. Before the holidays, I sent a letter to the leaders of the General Assembly to advance the conversation we’ve been having about how to reform and revitalize Connecticut’s schools. I outlined key principles to guide our efforts:• Enhance families’ access to high-quality early childhood education opportunities. • Authorize the intensive interventions and enable the supports necessary to turn around Connecticut’s lowest-performing schools and districts. • Expand the availability of high-quality school models, including traditional schools, magnets, charters, and others. • Unleash innovation by removing red tape and other barriers to success, especially in high-performing schools and districts. • Ensure that our schools are home to the very best teachers and principals — working within a fair system that values their skill and effectiveness over seniority and tenure. • Deliver more resources, targeted to districts with the greatest need — provided that they embrace key reforms that position our students for success.These principles are already animating our work in 2012. A major reorganization of the State Department of Education is underway, which will result in a Department structure based on strategic priorities, not compliance. We are also soliciting community feedback for Connecticut’s application for a waiver from No Child Left Behind. The principles have also guided the design of my legislative proposal for the 2012 session. Connecticut’s past efforts to fix our schools have been commendable, but they have failed the most basic test: they have not elevated our students’ aggregate achievement. We have been too timid when our situation calls for boldness and real reform. That’s why I have proposed the comprehensive package you will find described on these pages — because Connecticut will not improve outcomes for our students with more half-measures and repackaged versions of the status quo. I look forward to working with the General Assembly in the coming weeks to pass these reforms. Connecticut’s students and families need our leadership. Let’s work together to make 2012 the Year for Education Reform — and restore Connecticut as a national model for creating academic excellence for all.

Message from the Governor

http://www.sde.ct.gov/sde/site/default.asp

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Educational Cost Sharing GrantState’s Support for Public Education

Academic Year Middlebury Southbury

2006-07 $432,884 $1,253,501

2007-08 $610,587 $2,320,147

2008-09 $684,186 $2,422,233

2009-10 $684,186 $2,422,233

2010-11 $684,186 $2,422,233

2011-12 $684,186 $2,422,233

2012-13 $714,234 + ($30,048) $2,518,902 + ($96,669)

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Excess Cost Grant Support for Specialized Special Education Cost

Calendar Year Reimbursement Threshold Spending Threshold

2000-01 100% of the cost 5 times per pupil

2001-02 100% of the cost 5 times per pupil

2002-03 87.9% of the cost 5 times per pupil

2003-04 76.3% of the cost 5 times per pupil

2004-05 82.98% of the cost 5 times per pupil

2005-06 87.35% of the cost 4.5 times per pupil

2006-07 88.4%% of the cost 4.5 times per pupil

2007-08 100% of the cost 4.5 times per pupil

2008-09 100% of the cost 4.5 times per pupil

2009-10 84% of the cost 4.5 times per pupil

2010-11 Identification + need = More Excess Cost Revenue

2011-12 Assume 100 % & 4.5 X Increase

2012-13

Example: District ZCost of a Program = $100,000Per Pupil Cost = $10,000

In 2001- 02 = spending threshold was 5 times per pupil cost = $50,000 and the district would receive 100% of difference between 5 times & Program Cost or $50,000

In 2009-10 = spending threshold was 4. 5 times per pupil cost = $45,000, 100% of the difference was $55,000 but state reimbursed only 84% of that total or $46,200

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Local Conditions

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External Driver K-12 Enrollment

2010 2011 2012 20133600

3700

3800

3900

4000

4100

4200

4300

4400

4500

ProwdaNESDECSippy

Reduction of 45 Students

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2011-12 GES Grade 2 16 16 15 17 X 64 BCG 2012-13 Existing Staff 15.5 15.5 15.5 15.5 X 62 21 One Section Reduced 20.66 20.66 20.66 X X 62 21

2011-12 GES Grade 5 19 19 17 20 X 75 23 2012-13 Existing Staff 16.5 16.5 16.5 16.5 X 66 23

One Section Reduced 22.0 22.0 22.0 X X 66 23

2011-12 PES Grade 2 25 23 21 23 X 92 21 2012-13 Existing Staff 15.0 15.0 15.0 15.0 X 60 21 One Section Reduced 20.0 20.0 20.0 X X 60 21

2011-12 LMES Grade 1 16 17 17 15 17 82 18 2012-13 Existing Staff 13.8 13.8 13.8 13.8 13.8 69 18 One Section Reduced 17.25 17.25 17.25 17.25 X 69 18

2011-12 LMES Grade 2 19 19 19 18 18 93 21 2012-13 Existing Staff 16.4 16.4 16.4 16.4 16.4 82 21 One Section Reduced 20.5 20.5 20.5 20.5 X 82 21

PHS Reduction of 0.6 FTE

TotalReduction/Reassigned 5.6 FTE

MES No Changes in StaffMMS No Changes in StaffRMS No Changes in Staff

Staffing Reductions/Reassignments

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DRG B NCEPGreenwich $17,675Woodbridge $14,571Fairfield` $14,458Orange $13,648Guilford $13,240Simsbury $12,862So. Windsor $12,774Farmington $12,620Trumbull $12,600Madison $12,488W Hartford $12,476R 15 $12,464Newtown $12,087Glastonbury $12,072Granby $11,805Cheshire $11,775New Fairfield $11,701Avon $11,675Brookfield $11,583

Net Per Pupil Ranking in 2010

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4%1.0% inc.4%

0% inc.

2%3.5% inc.

15%2.0% inc.

19%2.5% inc.

19%3.0% inc.

37%3.25% inc.

3.5% Increase 3.25% Increase 3.0% Increase

2.5% Increase 2.0% Increase 1.0% Increase

0.0% Increase

INCREASE/DECREASE•58% of attendees favored at least a 3 percent budget increase•42% of attendees favored less than a 3 percent budget increase

PROGRAMS & IMPROVEMENTS•K-12 Academic Safety Net•Professional Development•Class Size Improvements•H.S. Science Lab

Community Feedback Night

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Program Improvements

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ImprovementsAcademic

• 2.0 FTE Elementary SRBI Specialist• 2.0 FTE Middle Level SRBI Specialist• 2.6 FTE High School SRBI Program• 1.0 FTE High School Media Specialist• 1.0 FTE High School SPED Chairperson• Total FTE Support via budget 7.6• Net cost $109,000

Reductions / Reassignments• Using the 5.6 Certified reassignments• Using the 2.0 PT SIP tutors• Offset cost

Facility

• Physical Science Lab at PHS• HVAC Gr. 8 Wing at MMS• Add 35 SMART BOARDS to MMS / RMS• Net cost $400,000

Use the $400,000 from Capital Carryover to Offset this expense

Financial Offset

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Budget Construction

1. Foundation represented 3.15%2. Improvements represented

1.46%3. Expenditure Bottom-line 4.59%

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Budget Proposals as of Feb. 2012• Plymouth 0.00%• Bloomfield 0.00%• Stratford 0.41%• Litchfield 0.99%• Madison 1.31%• Monroe 1.79%• Simsbury 1.79%• New Canaan 1.92%• Region 5 2.88%• Plainville 2.90%• Avon 2.92%• New Milford 3.08%• Ridgefield 3.26%• Waterbury 3.82%• Newtown 3.80%• New Fairfield 3.86%• Southington 3.88%• Cheshire 3.93%• Seymour 4.70%• Newington 4.78%• Bethel 4.79%• Meriden 4.81%

• X = 2.69%

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Adjustments1. Operational Offsets

1. Human Resource2. Service 3. Supply

2. Revenue Offsets3. Net bottom-line

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Summary of the 2012 – 2013 RequestSTARTING POINT• Foundation increase $1,896,000

– All related salaries $1,300,000– SRBI Existing (Jobs Bill) $130,000– Transportation $100,000– 5.6 FTE RIF Certified Staff $336,000– 2.0 SIP Tutors $30,000

• Capital Improvements $400,000– HVAC @ MMS Gr. 8 $200,000– Physical Science Lab PHS $100,000– Info Tech Interactive Boards MS $100,000

• Academic Improvements $475,000– Add 2.0 SRBI Specialists (1.0 fte/school) $130,000– New 2.6 HS Intervention Specialists $150,000– New 2.0 MS Intervention Teachers $130,000– Second Media Center Teacher $65,000– Academic Chairperson for HS Grant $0

• Subtotal increase $2,771,000– Increase Percentage 4.59%

Summary of the 2012 – 2013 RequestHUMAN RESOURCE ADJUSTMENTS• Foundation increase $1,546,000

– All salaries $1,300,000– SRBI Existing (Jobs Bill) $130,000– Transportation $100,000

– 5.6 RIF Staff Reassigned $336,000– 2.0 SIP Tutors $30,000– Retirement Incentive Savings ($350,000)

• Capital Improvements $400,000– HVAC @ MMS Gr. 8 $200,000– Physical Science Lab PHS $100,000– Info Tech Interactive Boards MS $100,000

• Academic Improvements $109,000– 5.6 FTE RIF Staff for Cost Avoidance ($336,000)*– 2 Part time SIP Tutors ($30,000)**– Add 2.0 SRBI Elem. Specialists (1.0 FTE /school) 2.0 RIF* $130,000 $0– New 2.6 HS Intervention Specialists 0.6 RIF* $150,000 $150,000

• Reduction 0.6 FTE ($36,000) ($36,000) – New 2.0 MS Intervention Teachers 2.0 RIF* $130,000 $0

• Cut 2.0 SIP tutors ($30,000)** ($30,000)– Second Media Center Teacher 1.0 RIF* $65,000 $25,000– 1.0 SPED Academic Chairperson SPED Grant $0 $0

• Subtotal increase $2,055,000– Increase Percentage 3.41%

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Summary of the 2012 – 2013 RequestOPERATIONAL ADJUSTMENTS• Superintendent's Budget Proposal

$2,055,000– Med. Ins. HSA Savings* ($608,525) $1,446,475– Sick & Severance ($150,000)

$1,296,475– Capital Carryover ($400,000) $896,475– Textbooks ($40,000)

$856,475– Instructional Supplies ($120*200) ($24,000) $832,475– Subtotal Proposal $832,475– Percent Increase 1.38%

*Last year’s Medical insurance budget line item was $9.4 million dollars

We saved $1.1 million in insurance premium cost a function of the full migration of employee groups from the PPO plan to the HSA: 1) lower premium share for those initially migrating to the HSA and 2) increased rollout revenues to the BOE as employees’ contributions in 12-13 rise from 25% to 50% of the HSA premium.

Add back $500,000 to adjust for a 15% increase in premium cost

Net savings $608,525 * HSA transition complete no other “rabbits in the hat” anticipated!!

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Summary of the 2012 – 2013 RequestREVENUE ADJUSTMENTS• Superintendent's Budget Proposal $832,475

– Excess Cost Revenue ($692,475) $140,000– Outside District Revenue ($80,000) $60,000– Pre-school Revenue ($60,000) $0– Bond refinancing Yr. 2 ($330,000) Debt Service

• Superintendent's Budget Proposal $0• Percent Increase 0%

ECS Entitlement Increase $126,717

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Superintendent's Recommended Budget

• Original Foundation $62,147,578• Improvements $875,000• Subtotal $63,022,578• Percent increase 4.59%• Revision 1 Staff Adjustments ($716,000)• Subtotal $62,306,578• Percent increase 3.41%• Revision 2 Operational Adjustments ($1,222,525)• Subtotal $61,084,053• Percent increase 1.38%

• Revision 3 Revenue Adjustments ($832,475)• Superintendent’s Recommendation $60,251,578 • Percent increase 0.00%

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2012 -13 Program Budget Synopsis • Foundation supports all meaningful academic programs PK – 12

including curricula development and professional development to put us in position to seamlessly integrate CCS as well as maintaining reasonable class sizes where possible

$60,142,578• Improvements in SRBI K – 12• Improvements to SPED delivery at PHS• Improvement to HS Media Ctr. Program • Renovate Physical Science Lab• Improvements in the Media Technology PHS• Indoor Air Quality MMS

• Superintendent’s Recommendation $60,251,578

• Percent increase 0%

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Budget Drivers2011 -12 Budget Distribution

Proposed 2012 -13 Budget Distribution

% Increase

Salaries $36,210,088 Salaries

$37,442,853

3.40%

Insurances $11,079,620 Insurances

$10,677,799

-3.63%

Transportation $3,630,559 Transportation

$3,280,509

-9.64%

Instructional $1,422,000

Instructional

$1,351,261

-4.97%

Rentals $1,101,000 Rentals

$1,105,600

.42%

Facilities $3,189,332 Facilities

$3,059,056

-4.08%

Tuition $1,189,000 Tuition

$839,000 -29.44%

Debt

$2,429,979

Debt

$2,495,500

2.70%

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Budget CategoriesFY11-12 Percent FY12-13 Percent

CATEGORY ADOPTED Distribution PROPOSED Distribution

Salaries $36,245,966 60.10% $37,442,853 62.14%

Insurances $10,411,851 18.39% $10,677,799 17.72%

Transportation $3,366,125 6.03% $3,280,509 5.44%

Instructional $1,500,500 2.36% $1,351,261 2.24%

Rentals/Advert. $1,243,667 1.83% $1,105,600 1.83%

Facilities $3,214,844 5.29% $3,059,056 5.08%

Tuition $1,331,666 1.97% $839,000 1.39%

Debt $2,936,959 4.03% $2,495,500 4.14%

Total $60,251,578 100% $60,251,578 100%

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Considerations for the Future•Budget Development is a strategic process linking one funding plan to the next, done thoughtfully and adequately, each contributes to the organization’s journey.•Funding alone, does not insure systemic improvement•Lack of timely funding and commitment at critical milestones will doom the best planned initiative

Region 15’s Journey to Program Excellence is like NASA’s journey to the Moon:•Roll the Atlas 5 B Moon Rocket to the launch pad •Check that booster engines are fueled and pressurized•Check that all navigation / life support systems are in “go” status•Confirm astronauts readiness; do they have “go flight” status?•Confirm weather conducive to the launch window•Remember part of the plan is to get these astronauts back to earth safely•Failure to pre-flight could result in disastrous consequences

Region 15’s Launch Sequence:•Rolling 21st Systems Improvement to the launch pad•Fuel Systems check: professional development, curriculum development, professional learning community operations, progress monitoring capacity, human resource expertise, these pressurize and fuel our rocket, are the pressure seals holding? Are we retaining skills?• Navigation Systems check are: SRBI, Concept Based Instruction, Common Core State Standards, learning materials, redistricting/reprogramming recommendations adequate life support systems students and teachers need for their journey?•Confirm students and teachers are in “go flight” status•Confirm funding and community support in place providing the proper atmospheric conditions for launch •Our kids need to return to their community safely to be productive citizens•Failure to do adequate preflight monitoring could result in disastrous consequences

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Superintendent's Recommended

2013 Budget Proposal$60,251,578

0.00%

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Thank you