Superintendent's Budget and Finance Report - Upper Dublin School ...

Michael Pladus
Superintendent of Schools
April 22, 2013
Upper Dublin High School

In May/June of 2004, the Board of School
Directors approved a tax increase of 8.83%
in an attempt to rebuild a fund balance that
had been drawn down (more on that to
follow).
In August of 2004, a new Superintendent of
Schools began his commission, replacing
Dr. William Leary who had served on an
interim basis after the previous
superintendent Dr. Steven Wilcox had
unexpectedly resigned.

And what have the last nine years brought..

A major emphasis on curriculum and
instruction marked by new courses and
initiatives, lower class sizes, Response to
Intervention, greater enhanced student
preparation for the SAT’s, and a strong
commitment to eliminating the
Achievement Gap.

An increase in art and music staffing along
with an expansion of after school
opportunities for students in the form of
clubs and activities.
Full Day Kindergarten.
A rallying call of All Means All in Special
Education, resulting in more and more
students with the opportunity to exercise
their rights to be educated in the least
restrictive environment.

A District-wide technology initiative
including a restructuring of the District’s
website, listserv, and emergency
communication systems, a new student
information system and parent access
system, and with the help of our
PTA/PTO groups, interactive whiteboards
in just about every classroom.

A joint partnership effort with Upper
Dublin Township and Youth Athletic
Organizations to develop the SPARK Field
Complex.
The only successful referendum in the
Commonwealth of Pennsylvania leading
to the construction of a new high school.

Two support contracts and two teacher
contracts to re-establish parity with other
top performing districts with a creative
give back to help avoid furloughs and
demotions.

Top Ten SAT Scores:
1. Masterman
2. Harriton
3. Unionville (Note: While increasing the number
4. Conestoga of test takers to over 90%.)
5. Lower Merion
6. Radnor
7. Upper Saint Clair
8. Great Valley
9. Jenkintown
10. North Allegheny/Upper Dublin

STATE-WIDE RANKING
1. Upper St. Clair
2. Mt. Lebanon
3. Unionville-Chadds Ford
4. Tredyffrin-Easttown
5. North Allegheny
6. Radnor Township
7. Hampton Township
8. South Fayette Township
9. Lower Merion
10. Central Bucks
STATE-WIDE RANKING
11. Wallingford-Swarthmore
12. Fox Chapel Area
13. Great Valley
14. Peters Township
15. Rose Tree Media
16. Lewisburg Area
17. Lower Moreland
18. New Hope- Solebury
19. Upper Dublin
20. Fairview

It should be noted that none of the above
ten points of pride (and there are many
others) would have been possible
without the strong financial support of the
community, and the dedication of our
faculty and staff.

The District faces a budget
deficit of approximately $2.3
million.

$2.7 million Carry over deficit
$2.5 million Net cost of teacher salary increases
$0.627 million Net cost of other contracts
$0.430 million Projected medical benefit increases
($1.030 million) Non-recurring revenue
$660,000 – Refund from Bond Fund
$220,000 – Interim Taxes
$150,000 – Delinquent Real Estate Taxes
TBD
HUB repayment
Total: a need to
rollover, generate, or
reduce $7.287 million
To be made up by:
• Fund balance ($2.6 million, projected)
•Tax increase ($1.937 million, projected)
•Cost reductions/Remaining Deficit ($2.75
million, projected)

Reasons for the Budget Deficit
• Our expenditures as a District (especially salary,
benefits, and pension) have continued to
increase at a rate greater than our available
revenues, despite the Board and the community’s
strong financial support in approving taxes at or
near the Act 1 index and utilizing fund balance
instead of resorting to furloughs, demotions, and
outsourcing.

The deficit of $2.75 million as estimated in the
presentation of the Preliminary Budget on
January 14, 2013 has been reduced by $387,282
as the result of:
• Superintendent Salary Freeze (with associated
benefit reductions) - $6,245
• Central Office Salary Freeze (with associated
benefit reductions) - $14,579
• Act 93 Salary Freeze (with associated benefit
reductions) - $101,245
• Anticipated Retirement Savings through
Administrative Attrition - $64,213
• Better Estimates - $201,000
Total Reduction - $387,282
(still to be reduced, $2,362,718)

In order to bridge the deficit, the School
District is required to consider a number
of cost reduction options for 2013-14. The
criteria used in bringing these options
forward are first and foremost, least
impact on students, followed by least
impact on overall faculty, administration,
and staff. A conscious effort has been
made to have reductions across the
board so as to promote fairness and
equity to the extent possible.

Bridging the $2,362,718 deficit:
Deficit: $2,362,718
Projected Early Retirement Incentive Net Savings $ 750,000
Reduction of other support staff, faculty, and
administrators through attrition and/or reassignment
$ 260,095
Reduction in Athletics/Student Activities $ 135,318
Reductions and Other Savings $ 69,570
Total Projected Reduction in Expenditures $1,214, 983

Projected Early Retirement Incentive
Update $750,000
Reduction of other support staff, faculty
and administrators through attrition
and/or reassignment $260,095

Intramural Sports
Service Council
Safety Patrol
Clubs (art, ecology, garden, yoga)
Savings = $17,811

Activities to be eliminated or reduced were
based on enrollment, academic support,
and opportunities for developing
connections.
FACT Sponsor
Clubs (Mural, Italian, Future Problem
Solvers, H.O.P.E., Photography, Scrapbook)
Two P.M. Bus Duty positions
Savings = $16,265

Eliminate assistant coaching positions in
Girls’ Volleyball, Girls’ Lacrosse, Girls’
Soccer, Football, Boys’ Soccer, Boys’
Lacrosse, Field Hockey, Cheerleading,
Baseball, and Softball.
Savings = $22,934

Eliminate clubs including Anime,
Archery, Astronomy, Autism, Basketball,
Cardinal Guides, Culinary, Dance,
Debate, Fashion, Film, Foreign Student
Association, Gay Straight Alliance, Guitar,
Health Issues/Peer Educators, Movie
Making, Operation Smile, Photography,
Psychology, United Games, Sci-Fi,
Thespian Troop, Varsity, and Yogalates.

Reduce assignments in clubs including
Band, Black Student Union, Chemistry,
Chess, Chorus, Drama, Environmental
Education, World Language, Winter
Guard, Literary Magazine, Mock Trial,
Newspaper, Quiz Bowl, Robotics,
Science Fair, Step, UD Christian
Fellowship, Weight Training, and
Yearbook.
Savings = $42,575

Decrease Assistant Coaches
This would include coaching position
in Boys Soccer, Field Hockey, Football,
Boys Basketball, Girls Basketball,
Baseball, Boys Lacrosse, Girls Lacrosse,
and Spring Track.
Savings = $35,733

The total of these reductions is
approximately $135,000 and the proposal
will still allow the District to retain after
school elementary music programs and
Reading Olympics, after school music
and theatre programs at the middle and
high schools, as well as a number of
clubs and activities, but not as many as
had been offered over the past ten years.

Consultant Fees Savings = $19,250
Charge Fees for PSAT Testing
Savings = $ 9,183
Reduce Expenditures for Exchange
Programs
Savings = $ 3,300

Increase tuition for SAT Prep from $275 to
$350
Savings = $10,000
Reduce Staffing for Elementary Summer
School
Savings = $27,837

The total savings for these other
reductions is estimated to be $69,570.

Budget Deficit $2,362,718
Minus – all the projected cuts above $1,214,983
Remaining Deficit $1,147,735
Caveat: Based on all current projections and a
fund balance of approximately $8,000.

How do we bridge the rest of
the $1,147,735 deficit?

With nearly 72% of the District budget
comprised of salary and benefits (an
additional 15% consisting of debt) and
the largest single line item increase for
next year representing instructional
salary increases and associated costs,
the lion’s share of reductions will have
to come out of instructional salaries
and benefits and through attrition,
furloughs, and/or demotions.

As part of this evening’s budget, the Board of School
Directors will be asked to take formal action on ten
furloughs, reflecting:
• The curtailment of the 6 th and 7 th grade Writing Lab.
• The elimination of one of two Math Coach positions.
• Decrease in enrollment, particularly in 6 th grade.
• A change in delivery of speech services from
building based to itinerary based.
• The elimination of some elective offerings.
• And other modifications of the educational program.

The net result of the ten furloughs is
projected at approximately $620,752, still
leaving a deficit of $526,983 to be made
up through demotions unless some other
increase in revenues or decrease in
expenditures can be identified.

The list of demotions to be brought
forward for formal approval next month
reflects the following and is subject to
change, pending the final results of the
Early Retirement Incentive and ongoing
changes to the 2013-14 budget.

To be brought forward for approval on May 13 th
Course School Demotion to Savings
French SRMS .3 $ 17,846
Business UDHS .26 $ 30,425
Business UDHS .26 $ 19,770
Physical Ed. ELEM 4 x .2 $ 78,618
Music ELEM 4 x .2 $ 69,914
Library ELEM 4 x .2 $ 88,994
Music UDHS .2 $ 23,404
Total $328,971
Still to be determined : $198,012

The impact of the furloughs and
demotions:
• Reduction of some electives.
• Increase in class size.
• Change in some procedures and delivering of
services.
• The human cost.

The furloughs and demotions being
brought forward this evening, and
expected to be brought forward on May
13 th are not being done so on the basis of
teacher performance, but solely because
of programs changes and finances.

The economic climate for nearly all
school districts is difficult everywhere
and the forecast appears to be only more
challenging. The trajectory of future
expenditures and revenues for most
districts across the Commonwealth
(barring those few with a large inherited,
pre-Act 1 Fund Balance) is simply not
sustainable.

School District
Hatboro-Horsham
(7-21-10, 8-25-11)
Hatboro-Horsham
(7-21-10, 8-25-11)
Jenkintown
(6-14-10)
Marple Newtown
(7-6-10)
PDE Approval Issue
Reduce positions in high school
German along with other elementary
programs.
Reduce number of section of
elementary library support and
instruction, several middle school
sections, and eliminate middle school
instructional technology specialist.
Abolish Family and Consumer Science
as a stand alone program for Gr. 7-12.
Curtail elementary instructional
support, eliminate Gr. 6 German,
integrate computer and word
processing into core curriculum, et.al.

School District
Radnor
(7-20-10)
Perkiomen Valley
(6-29-11)
Upper Perkiomen
(6-10-11)
Wallingford-
Swarthmore
(6-13-11)
PDE Approval Issue
Alter elementary art and middle
school music. Realign social studies
and physical education classes.
Eliminate social worker position, alter
elementary program and staff
development.
Eliminate elementary Spanish, Gr. 3
Strings, and driver’s education.
Curtail Family and Consumer Science
and French.
Curtail Gr. 7 technology program.

School District PDE Approval Issue
Haverford
(6-23-11)
Kennett
Consolidates
(6-13-11)
Tredyffrin-
Easttown
(5-24-10)
Cheltenham
(6-20-11)
Alter/curtail library program.
Curtail literacy and Math Coach
program. Alter elem. art, music, & PE
& hs business, health & PE
Curtail applied tech. program into
chemistry, physics, & environ.
programs. Alter PE to eliminate
electives. Reduce number of times
per year that art, general music, &
health & PE are offered.
Eliminate middle school admin.
prog., intermediate dean of students,
& intermediate hs department chairs.
Alter key music programs.

School District PDE Approval Issue
Central Bucks
(4-11-11, 3-29-12)
Garnet Valley
(6-4-12)
Alter middle school schedule by
reducing number of periods and
increasing period lengths. Curtail
middle school German.
Eliminate two Gr. 1 positions and two
Gr. 3 positions.
Daniel Boone
Curtail Kindergarten from full day to
half day. Curtail elementary band
And the list goes on and on...

The challenges and opportunities for
restructuring on the horizon:
• District realignment (K-12 or other
reconfigurations).
• The search for other innovative practices.
• The introduction of large group instruction classes for
seniors to help better prepare them for college.
• Offering credit or waiving credit requirements for
physical education for high school athletes.
• Greater utilization of technology for on-line and hybrid
based learning wherever applicable.

The challenges and opportunities for
restructuring on the horizon:
• Future Employment Contracts
• The current UDESPA (Support Staff) contract
expires on June 30, 2014.
• The current UDEA (Teacher) contract expires on
June 30, 2014.
• The current Superintendent’s contract expires on
July 30, 2014.

• Across the nation the last few years, have seen in
many places an anti-teacher and anti-union
backlash, as cash strapped towns, cities, school
districts, and states grapple with mounting
deficits. It is important to remember that
perhaps no other factor matters more in
education than the quality of the teacher, and
there is great intangible value in a District’s
ability to retain its own support staff rather than
outsourcing those services.

• As public school employees, however,
particularly as teachers, administrators, and
superintendents, we must recognize that total
compensation has risen to the point that it is
highly competitive with and in many cases
greater than in the private sector, especially
when considering the value of medical benefits
and pension.

District Goals, Accomplishments, and
Priorities:
• A major emphasis on curriculum and instruction.
• An increase in art & music staffing & an
expansion of after school opportunities.
• Full Day Kindergarten
• All Means All
• District-wide Technology Initiative
• A joint partnership to help fund the SPARK
complex.

District Goals, Accomplishments, and
Priorities:
• The construction of a new high school
• Contracts to achieve parity.
• Student achievement.
• Developing a more sustainable financial
trajectory for the future.