ips & indy chamber project update sy 2019 20 q3
TRANSCRIPT
IPS & INDY CHAMBERPROJECT UPDATE
SY 2019–20 Q3
Aleesia Johnson, Interim Superintendent
March 21, 2019
Overview
2
A
B
C
D
E
IPS & Indy Chamber Agreement
3 Key Features
Agreement on $220M Operating and $52M Capital Referenda over 8 years
and the Chamber’s support for such
Agreement on $229.5M invested over 8 years for student learning equitably
distributed to IPS schools
Agreement on the need to achieve approximately $328M in savings/new
revenues over 8 years to make item Nos. 1 and 2 sustainable
The Chamber is securing private resources to support 2 IPS executive positions (Chief of Transformation and Enterprise Development Director) and the consulting resources necessary to assist
IPS to provide quarterly public updates to the Chamber on the status of the
efficiency projects
IPS & Indy Chamber Agreement
4
IPS seeks to eliminate its originally projected
operating deficit over the next 8 years in order to
dedicate the entirety of the Operating Referendum
to enhanced academic outcomes.
Objective
Oversight Structure
5
Executive Task Force
(meets monthly, led by Superintendent)
Status updates, priority questions Project approval and initiative direction
Informal Functional
Team No. 1
Informal Functional
Team No. 2
Informal Functional
Team No. 3
Project Coordination Team
(meets biweekly,
led by Chief of Transformation)
Oversight Structure
6
• IPS Board
• President Michael O’Connor
• Vice President Venita Moore
• Indy Chamber
• CEO Michael Huber
• Chamber Chief Policy Officer Mark Fisher
• IPS Leadership
• Interim Superintendent Aleesia Johnson
• Tammy Bowman, Joe Gramelspacher, Scott Martin, Kristian Stricklen, Dennis Tackitt, Ahmed Young, Weston Young
• Advisors
• Faegre Baker Daniels Consulting
• Policy Analytics
• Joe Gramelspacher, Valerie Hunt, Laura Larimer, Scott Martin, Mindy Schlegel, Dennis Tackitt, Weston Young, Policy Analytics, Faegre Baker Daniels Consulting
Teams
Oversight Structure
7
• Dennis Tackitt, former CFO for Wayne Township Schools for 20 years
• MBA from Butler University
• Direct report to IPS superintendent
• IPS employee funded by the Chamber for 3 years
• Provides organizational capacity to drive efficiency projects
• Challenges the status quo model for delivering non-instructional services within an urban public school system to capture efficiencies while supporting district’s academic goals
Chief of Transformation
Project Updates
8 Transportation
Original Modeled Goal
$111.2M in total savings over 8 years
Status of Project Versus Modeled Savings
Estimate of Savings
Working with IndyGo to validate total amount of savings possible re: IndyGo
high school service; other transportation savings possible
Timing to Achieve Savings
Significant transportation savings achieved for SY 2018–19; best case
scenario IndyGo implementation for 4 high schools in SY 2020–21
IndyGo partnership decision needed by September 2019 for SY 2020–21
Next Steps
Map all student addresses versus IndyGo service
Determine policies around sufficiency of IndyGo service
Identify and work to resolve issues constraining IndyGo service
9 Facilities
Original Modeled Goal
$97.2M in total facilities savings over 8 years, beginning with Phase I in
SY 2021–22 and Phase II in SY 2022–23
Status of Project Versus Modeled Savings
Estimate of Savings
Total amount of savings modeled is achievable; legislative help would increase
flexibility in use and disposal
Timing to Achieve Savings
Development of timeline for community engagement, review of data, and input
and consideration of academic impact are underway
Next Steps
Complete mapping of fiscal issues
Advocate for legislative changes
Develop Request for Proposal for facility master plan
Project Updates
Project Updates
10 Food Service
Original Modeled Goal
1x $17 million in repurposed federal funds achieved in SY 2018–19
Status of Project Versus Modeled Savings
Estimate of Savings
Total proposed amount reduced to reflect the need to hold funds for state
mandated operational expenses and ongoing student nutrition programs
Timing to Achieve Savings
IPS leadership recommendation to Board in March 2019; timing to receive
approval anticipated to be June 2019
Next Steps
Submit waiver to IDOE
Determine future operational changes to the program
Metrics, Current YTD & Projections
11
353 360 365 371 376 382 388 394
329 343
327 330 331 333 336 332
-
100
200
300
400
500
2019 2020 2021 2022 2023 2024 2025 2026
Do
llars
in
Millio
ns
Total Savings$328M
Notes
• Original modeling completed in August 2018
• Does not include $229.5M in salary investments
• Does not include any other referendum-funded spending
Baseline expenditures without efficiency savings
Baseline expenditures with efficiency savings
Original Projection of Combined Education Fund and Operating Fund ExpendituresIPS/Indy Chamber MOU Model
Original Projections
Metrics, Current YTD & Projections
12
-
50
100
150
200
250
300
350
400
450
2019 2020 2021 2022 2023 2024 2025 2026
Do
llars
in
MIllio
ns
MOU Baseline Model w/ Efficiency Savings
Current projection without teacher pay Increase
Current projections with teacher pay increase
$2.67B
$2.76B
$2.95B
Comparison of Current Expenditure Projections to Original MOU ProjectionEducation and Operation Funds Combined
Short-term (FY 2019
and FY 2020)
expenditures appear
to be tracking below
original projections.
Without intervention,
long-term
expenditures will
exceed spending
targets.
Most of the “big
ticket” savings
opportunities begin to
come online in 2020
and 2021 in the MOU
expenditure
projection.
Expenditure Comparisons
Metrics, Current YTD & Projections
13
24
16
38 41
45
49
53
62
26 26 27 28 29 30 31 32
-
10
20
30
40
50
60
70
2019 2020 2021 2022 2023 2024 2025 2026
Do
llars
in
Mil
lio
ns
Original Savings Targets
Projected Decrease from Baseline
Comparison of Original Savings Targets to Current ProjectionsEducation and Operation Funds Combined
Does not include teacher raises
Projected Savings vs. Targets
Metrics, Current YTD & Projections
14
146
52
15
44
9
38 33
10
128
46
13
60
8
36
28
9
-
20
40
60
80
100
120
140
160
Total Salaries Total EmployeeBenefits
Total PurchasedServices
Total TransferTuition
Total OtherExpenditures
Capital Projects Transportation BusReplacement
Education Fund Operations Fund
Do
llars
in
MIl
lion
s
2018 Actual
2019 Projected
Year-to-Year Expenditure ChangesEducation and Operation Funds Combined
Does not include teacher raises
FY 2019 estimates are preliminary and subject
to change
Year-to-Year Changes
Metrics, Current YTD & Projections
15
52 48
38
21
(4)
(37)
(78)
(128)
(140)
(120)
(100)
(80)
(60)
(40)
(20)
-
20
40
60
80
2019 2020 2021 2022 2023 2024 2025 2026
Mill
ion
s
Fund Balance ProjectionEducation and Operation Funds Combined
The fund balance projection
includes the following
assumptions:
School Operating
Referendum revenues.
FY 2019 teacher pay
package.
3% annual increase in
certified salaries.
Fund balances (Rainy Day
not included) depleted by
2023.
Future enrollment decreases
will impact tuition support
revenues, requiring
additional cost reductions.
Fund Balance Projection
Summary of Progress to Date
16 Key Messages
Initial, tentative estimates show IPS is ahead of target savings for
FY 2019 and FY 2020. This is due primarily to transportation cost
savings and personnel savings.
In the absence of future operational changes, Education and Operation
Fund balances are projected to be exhausted by FY 2023.
Significant operational changes — including the major transportation and facilities savings outlined in the 2018 assessment — will be required to mitigate the projected structural deficit while achieving targeted compensation levels.
Questions and Feedback
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