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1 Passing the School Budget Presented By: Vermont School Boards Association 2008

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2 Speakers Bill Talbott VT Dept. of Education Brent Kay Orange Southwest SU Ken Fredette Wallingford School Bd. John Fike Reading School Board Winton Goodrich - VSBA

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3 Key Assumptions Connection between per pupil expenditures and residential tax rates No CLA impact when paying taxes based on income Boards not responsible for impact of increasing property values

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4 Cost Drivers Local and Total Spending Negotiated Contract Employee Benefits Purchased Services Student/Teacher Ratios Increased Staffing Levels

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75% of Budget is Fixed by the Negotiated Contract Options for Substantial Cost Reduction: Eliminate Programs Increase Student/Teacher Ratio

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6 Factors That Influence Taxes District could have flat budget growth but if CLA decreases it causes tax increase Property value growth is slowing CLA impact may diminish in future years Less tax base growth may cause statewide tax rate to increase

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7 Whats New for FY09 First year union and member districts have separate tax rates Each will be exposed to high spending threshold Base year for Act 82 Think-Twice, two-vote provision

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8 Whats New Changes to equalized pupils Secondary weight reduced to 1.13% Shorter ADM Final count Dec. 15 Considering fall and spring ADM census

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9 Financial Effort % wealth that a state allocates to education $12,337 in 2008 has the same "purchase power" as $10,000 in 2000.

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10 Ed Spending CPI GDP (revised slide)

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11 School Spending Patterns Change (2007 VT Annual Personal Income Growth 4.7%)

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12 Education Fact Sheet Demonstrates Equity Between High and Low Spending Districts

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13 Annual Health Insurance Increases Vermont School Boards Insurance Trust

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14 Annual Special Education Increases (K-12 Service Plans) Vermont Department of Education

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18 Vermont Business Roundtable

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19 Web Finance Resources Vermont Business Roundtable http://www.vtroundtable.org/ Voices for Vermont's Children http://www.voicesforvermontschildrenhttp://www.voicesforvermontschildren. org/main.php/sid/7

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Education Funding Bill Talbott Chief Financial Officer Vermont Department of Education

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21 Equalized Pupil Weights WeightScaleScaled Weight Elem. (PreK-6)1.0 0.9100.91 Sec. (7 12)1.130.9101.028 Elem. Poverty0.25 0.9100.228 Sec. Poverty0.28250.9100.257 English Learner.20 0.9100.182

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Student Enrollment Trends

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24 Excess Spending Threshold FY 2008 - $12,594 FY 2009 - $13,200(est.) (Statewide avg. of $10,860 increased by 25%)

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26 2008 State Tax Rates Homestead tax rate = $0.87 (may be reduced to $0.85) Non-resident & business tax rate = $1.36 (may be reduced to $1.34) School budgets do not impact non-resident and business tax bills

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27 Non-resident Tax Rate CLA impact same as homestead tax rate Fund raising doesnt help any more No financial advantage for benefactor

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28 Non-Resident CLA Impact $1.36 Non-Resident & Business (No income sensitivity provisions) Town A (90% CLA) adjusted tax rate $1.36/0.90 = $1.51 Town B (80% CLA) adjusted tax rate $1.36/0.80 = $1.70

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29 Eligibility for Income Adjustment 2007 tax return $90,000 or less based on entire house site value Income over $90,000 eligibility based on first $200,000 of house site value

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30 Income Sensitivity Homestead income less than $90,000 - Tax credit subtracted from school tax bill Based on 2007 income and FY 2008 school budget Homestead income less than $47,000 of total tax bill Combined municipal and adjusted school tax must not exceed 5% of income

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31 Common Level of Appraisal Common Level of Appraisal Town grand list divided by the state equalized grand list Used to equalize property values and resulting tax burdens throughout the state Statewide average CLA 82.39%

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32 Effect of CLA on Tax Rates If CLA IsIncrease Tax Rate By 95%5% 90%11% 85%18% 80%25% 75%33% 70%43% 65%54%

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33 Under Act 130 Homestead tax collected by town Union and member districts each have own tax rates (dont avg. rates) Districts determine ed. spending per pupil Based on grade range of district Prek -12, K-6, 7- 12, 9-12, etc.

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34 Under Act 130 Union districts are recognized All districts will determine education spending per equalized pupil All districts will have a homestead tax rate Towns homestead tax rate weighted average of district tax rates

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35 Homestead Tax Rate for Bedrock Town of Bedrock 60% of eq. pupils are members of Bedrock Elementary District 40% of eq. pupils are members of Mudville Union High District

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36 Homestead Tax Rate for Bedrock Bedrock Elem. tax rate = $1.40 Mudville Union High tax rate = $1.55 60% of 1.40 = 0.84 40% of 1.55 = 0.62 Bedrock tax rate = 1.46

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37 Setting Homestead Tax Rates Education Spending districts equalized pupil count = average per pupil spending Example:Ed Spending =$2,858,700 Eq. Pupil Count = 300 $2,858,700 300 = $9,529

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38 Equalized Homestead Tax Rates Average Ed Spending per Eq. Pupil of District Percentage of Household Income Equalized Homestead Tax Rate $7,330 FY07 Base 1.80% FY07 Base 0.95 FY07 Base $8,0631.98%1.05 $8,7962.16%1.14 $9,5292.34%1.24 $10,2622.52%1.33 $10,9952.70%1.43

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39 Tax Rates on the Tax Bill Equalized Tax rates are then divided by the towns Common Level of Appraisal Per pupil spending = $9,529 Equalized rate = $1.24 CLA = 80% Tax rate on bill = 1.24 80% = $1.55

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40 Education Spending for State Total Adopted Budgets PreK- 12 $1,227,094,890 Less Expected Revenues$212,046,312 Education Spending$1,015,048,578

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41 2005 Data, Vermont Dept. of Education Regional Per Pupil Education Comparisons

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Tax Rates & Tax Amounts

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43 BRAD

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44 Town Rebates and Prebates http://www.state.vt.us/tax/pdf.word.ex cel/statistics/2004/prebate_town.pdf Income Sensitivity Web Resources Check Link

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The Final Stage: Presenting and Passing Your School District Budget Brenda Fleming Business Manager Rutland Northeast Supervisory Union

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46 Know your Audience School Board Committee of Elected Officials Citizens of a Single Town Citizens of Multiple Towns Union or Independent School District Vocational School Local or Regional

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47 Respect Your Audience What are the goals for students? What are the key economic factors? Who are your major employers? Dotcom's vs. agricultural industries Large conglomerates vs. family run businesses

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48 Respect Your Audience What are the income levels? Compare community, state, and national incomes. What are the community education levels?

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49 Present to your Audience Tailor information to fit the public forum. PowerPoint, Overheads, Handout Mailing, Brochures & Flyers Small meetings of elected officials and citizens Large meeting of citizens Remember to Respect your Voters!

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50 Budget Approval Process Public vote From the Floor Board members present Citizens and/or voters present Public vote by Australian Ballot Voters must read the annual report and/or budget flyer to be informed Make sure the written material is clear, concise & understandable Dont use public funds to advocate; only to inform!

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51 Trust & Positive Communications Be Prepared! Its BEST way to maintain and/or gain voters trust! Know the major budget increases Answer the tough questions, before they are asked Control the presentation Keep discussion on task and on schedule Provide all the necessary information Keep presentation positive & productive

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52 Trust & Positive Communications Dont wait for voters to ask tough questions Often become antagonistic Begin fueling mistrust May r esult in loss of Board control

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53 Major Budget Factors/Hot Topics Know answers to hot topics! Special Education Connect costs & programs to students Show and demand respect for students & families Beware of acronyms IEP, SLP, EEE, 504 Maintain confidentiality and inform voters

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54 Major Budget Factors/Hot Topics Teacher contracts What are average teacher salaries Avoid blaming! Avoid comments like we have no control Creates anger & mistrust Avoid negative comments like we tried .. but the union said no

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55 Major Budget Factors/Hot Topics Health Insurance Be prepared to answer: How much do the Teachers pay? Why is it so little? Explain cooperative buying programs (VSBIT) Provide other district info Compare to professional industries

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56 Major Budget Factors/Hot Topics Building Operation & Maintenance Deferred Maintenance Rising Energy Costs Bulk Purchase Programs and Regional Collaborations Other Local Topics Upcoming Building Projects/Bond Votes Explanation of Deficits

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57 What to Answer & How to Answer Consider what the voter needs to know Who will be served by the Budget What will it mean to all Parties: Students Teachers Taxpayers Why do we need these Services How much will it Cost In Total Per student Taxpayer

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58 Connect the Budget to Students Connect budget to students, programs and school achievements Now is NOT the time to be Humble Communicate high test scores If recently instituted full-day Kindergarten has resulted in higher test scores in 3 rd grade tout it! Remember your Audience Multiple towns Use combination of graphics, narrative, PowerPoints

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59 Presenting vs. Defending Speak with Confidence Be: Consistent Concise Clear (If you dont know an answer, DONT make it up!) Respectful

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60 Presenting vs. Defending What to Avoid I statements Budget created and supported by a team We have no control over contract, SPED.. Statements about our lack of control fuel anger and mistrust

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61 Presenting vs. Defending Beware of Inadvertently Defending the Budget Best proposal: balancing educational needs and taxpayer costs Support the budget with facts, figures & concrete information Including the budget assumptions and expectations

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62 Presenting vs. Defending DONT avoid questions. Even if you disagree, remember that the proposed budget was agreed upon by the majority of board Do not to criticize the budget Avoid negative statements: We cant..We tried..

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Budget Passage Communication and Engagement Strategies Bob Noyed President National School Public Relations Association

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64 Effective Communication Strategies Develop a plan Create effective media relations Involve key opinion leaders Explain reasons for decisions Create key messages

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65 Effective Communication Strategies Make communication everyones job Share bad news and move on Step around media and gatekeepers Share information with school staff

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66 What Is a Communication Plan? Road map for connecting with stakeholders Identify what needs to be conveyed Create short-term strategies to address specific issues

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67 Types of Communication Processes No plan Event or issue based Crisis based Regular and ongoing Strategic and integrated

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68 Developing Communication Strategy Decide Where are we now? How did we get here? Where do we want to be? How do we get where we want to be?

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69 Creating an Effective Strategy Plan with the end in mind Outline key messages Identify obstacles Establish best tactics to reach goal Assess effectiveness

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70 Getting Through Communication Clutter Establish strategies that dont add to clutter Focus on participation rather than activities School not on most radar screens Develop key messages Use emotional stories not boring facts

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71 Create Key Messages Decide top 3 things community wants to know Incorporate key ideas in all communications Frame discussion for stakeholders Help them understand perspective

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72 Necessity for Internal Communication Provides foundation for communication program Creates communication culture Emphasizes role of staff as ambassadors Encourages staff to deliver messages

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73 Why Foster Internal Communications Research indicates that school staff especially custodians, secretaries, bus drivers, and food service workers are the most believed sources of school information. (National School Public Relations Association)

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74 Communicating Complex Issues Time Community cant understand immediately Repetition - Need many exposures and reminders Layering Break issue down into smaller pieces and layers

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75 Moving from Communication to Engagement Communicate Public Hearing Talk To Protect Turf Top Down Influence Like- Minded Establish Hierarchy Authority Deliberate With Community Conversat. Talk With Find Common Ground Bottom Up Understand Different Views Build Networks Responsibility

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76 Public Engagement Results Involved community Selling proposals are minimized Build better community relations Radical voices are minimized Fewer squeaky wheel decisions Solutions come from community

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77 Final Thoughts Start early Begin planning next years budget presentation tomorrow Dont just share numbers tell stories about how spending helps kids Communicate the value, not just the cost Engage citizens in the process

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Link the budget to measurable goals as well as student and school accomplishments!

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What Do Voters Get for Their Tax Dollars Show Me the Goods!

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80 Action Plan Student performance data Target areas needing improvement Professional development New curriculum

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81 Tracking Student Performance Assessment scores Graduation rates Achievement of students with special needs Higher education/post secondary enrollment NSBA Data Connection

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82 Tracking Student Performance Salary levels for graduates Awards & recognition received Scholarships received Participation in AP courses NSBA Data Connection

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83 Other Student Performance Indicators Community service & co- curricular activities Graduate & parent satisfaction surveys Attendance/drop out rates

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84 School Indicators Student/teacher ratio Teacher expertise & awards % of parents involved Number of community volunteers Types/# of business partnerships

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92 Comparative Web Data Cost-Effective Comparative Data http://www.state.vt.us/educ/new/html/data/compar ison_data.html State School Report Data http://crs.uvm.edu/schlrpt/ Comparative School Data http://www.state.vt.us/educ/new/html/maindata.ht ml

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93 Passing Your School Budget or Bond Vote

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94 Getting Public on Board 6 Months Prior to Vote Involve key opinion leaders on budget committee Do not spend public funds promoting budget passage Just communicate facts

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95 Getting Public on Board 3 Months Prior To Vote Prepare budget Prepare voting process Organize PR Committee Communicate with local opinion leaders

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96 Getting Public on Board 2 Months Prior To Vote Prepare informational materials Obtain voter registration lists Dialogue with opinion leaders Recruit Get Out The Vote volunteers

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97 Getting Public on Board 5 Weeks Prior to Vote Begin community presentations Meet with media Assign volunteers in Get Out Vote drive Prepare yard signs & flyers

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98 Getting Public on Board 4 Weeks Prior To Vote Include Vote on School Budget in business advertisements Write & tape radio spots Design & schedule newspaper announcements

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99 Getting Public on Board 3 Weeks Prior To Vote Organize key opinion leader breakfasts School leaders & volunteers meet: Church leaders & PTA Chamber of Commerce & Rotary Select Board & others

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100 Getting Public on Board 2 Weeks Prior To Vote Compile telephone surveys Direct mailings to clergy Information posters in stores

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101 Getting Public on Board 2 Weeks Prior to Vote Target distribution of sample ballots Post Vote on School Budget signs Telephone voters

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102 Getting Public on Board 1 Week Prior To Vote Newspaper announcements (no public funds) Mail newsletter (just facts) Radio & Cable TV interviews Post yard & other signs

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103 Getting Public on Board Night Before Vote Reminder to Vote phone calls Review Transportation To Polls logistics

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104 Getting the Right Message to the Media

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105 7 Media Essentials Develop relationships with reporters Know Rules of Engagement On & off the record Background info Frame the message - keep it simple & precise

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106 7 Media Essentials Understand reporters limitations tight deadlines Know your audience catch interest with your message

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107 7 Media Essentials Provide backup print materials help reporter understand issue Always be truthful

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Download A Copy Of This Power Point Presentation At: www.vtvsba.org (downloads page)