20/20 Hindsight

Swanton school boards of years past were unwilling to make difficult financial decisions. By their refusal to do what was right, our district kept spending more money than was being brought in, and we ended up in "fiscal caution".

An old saying states that "hindsight is always 20/20". Another old saying warns that those who refuse to learn from the past are doomed to repeat it. Let's apply both of those statements to our school district, shall we?

The immediate prior board stood at a crossroad when negotiations were held with the SEA a couple years ago. It was unpleasant for both sides of the table - but the nastiness came from the SEA. No doubt that statement will annoy or anger some, and not each individual member was in that category, but the organization as a whole and its leadership at that time were downright nasty. Plain and simple. For all of their rhetoric about things being "for the kids", the reality was that the SEA didn't give a flying pig about the kids. They cared only for their personal bottom line. That is why they used the "s" word: strike.

The board offer at that time was for a 2.5% raise to the base salary, upon which their steps increases would then be added. That wasn't good enough for the SEA. Even though our surrounding schools had similar (and accepted) offers at that level (and lower) - and had been in the "Excellent" category for a while on top of it - our SEA absolutely refused that offer. They demanded MORE or else they would strike. Period.

"For the kids" indeed.

That "s" word has been used in the past by the SEA - it was not a new tactic. But before, they hadn't felt much opposition as they did two years ago. But did that sway them? Not at all. They dug in their heels and forced the board to make preparations for keeping school open should the teachers actually walk out.

If only one more board member had determined to do what was right for our district, s/he would have voted "no" on that contract along with the other 2 votes (one of which was mine). One of the "yes" vote board members commented that "there are more important things than just money". Another "yes" vote person said that a strike was "the worse thing that could ever happen to a district".

The problem is, neither of these sentiments were shared by the SEA. If they had been, that lower offer of 2.5% would have been accepted.

When I look at a decision before us, I not only look at the immediate result but also what the future result will be. It's a similar approach taken by those who are good parents: many decisions are made with an eye to the future, and not just the here and now. It is a lousy parent who lets Junior effectively rescind a "no" by giving in to his whining. The whining might end for the immediate moment - but that parent has just taught Junior that whining will win him a "yes" the next time. So guess what Junior will do??

It is no different with the SEA. If their demands had been reasonable, I would have had no problem saying "yes". But when their demands were UNreasonable, I had to say "no". And I did. But others lacking intestinal fortitude caved in, and thereby put our entire district at financial risk. They had refused to learn from the past mistakes of others, and instead repeated them. We could have saved the district around $800,000 each year with a 2.5% raise to the base, versus what was actually given (which was 3.7% the first year and 4.1%, the second year). That would have helped us to squeak by the following, lean years.

But that opportunity was tossed out with the "s" word used by the SEA. The result was deficit spending would begin again in our district, and the new board would need to make some very difficult decisions.

Well, with the most recent contract agreed to this year with the SEA, our deficit spending suddenly shot up. It now begins NEXT YEAR.

We have 3 new board members. I think one has a pretty good handle on how school finances go, but the others do not. I think they are willing to learn - but what will happen in the meantime?

If anyone out there reading this truly does not want our district to be back in "fiscal caution", I suggest you contact your board members and let them know! Be honest with them! Insist that they make these hard decisions as your elected representative!

And if you don't really care, then just do nothing and we'll be right back where we were before, only worse - because we will have also blown through an $8 million carryover as well.

It is up to YOU - the residents of Swanton School District. If you are silent, then you are just as guilty of the end result.

April 2010 BOE Mtg

Our regularly scheduled school board meeting was held on April 27th.  All board members were present, along with the superintendent and treasurer.

Board President, Mona Dyke, passed out board commendations to the Middle School/High School Destination Imagination team, as well as to several of Mr. Kaufman's accounting students.  Band Director, Pam Kazmierczak, shared information on the high school band's trip to Washington, D.C. over spring break.  What a great trip they had!  Also, Mona shared a thank you note received from Parents' Club for help at the recently held school carnival (which was a huge success, netting over $17,000 profit!).

Mr. Ueberroth requested that the meeting minutes of March 30th be removed from the Consent Agenda, as he had not been able to attend that evening.  All other items of the Consent Agenda were passed, including items from the treasurer as well as the superintendent. 

During "New Business", treasurer Cheryl Swisher shared her most recent draft of the 5 yr. forecast.  This draft included the new administrators' contracts passed a few months ago as well as the 3% increase to the base for the teachers' contract.  Other items were also tweaked, as she attempted to forecast various revenue sources and expenses.  The Board will need to vote on this draft at our May meeting, as it needs to be filed with the state at the end of the month. 

A screen was in the room with the 5 yr. forecast draft displayed on it, but the numbers were a bit too small to see from across the room.  Property tax revenue was better than earlier forecasted, as Swanton schools only experienced a 3% decrease in collections, versus the projected 15-20% potential decrease.  The current draft forecast used actual amounts collected. 

House bill 66 (HB 66) at the state level was being phased out, and in 2010 is completely gone.  Close to $455,000 was subtracted from this revenue line. 

Some of you have probably noticed the result of our income tax levy reduction - down from 1.25% to 0.75% for collection.  It has been calculated that the current levy rate will collect approximately $1.4 million per year. 

A line for Unrestricted Grant money from the state and federal "stimulus" package also shows a reduction, projected at a loss of 6.5%.  This decrease in funding is currently not being replaced by the state in any other fashion.

A line item for "Other Revenue" shows a decrease of $33,267 in 2010. 

On the Expense side, salaries were calculated at a bare minimum from 2011-14, along with a 2% increase each year for steps payments (which teachers get by state law, regardless of whether any other raise is added to their base salaries).  While we have several retirements slated for fiscal year 2011, the draft uses these monies for replacements of current staff as well as adding some others.  In 2012, the draft shows $66,000 added for staffing and $33,000 in 2013.

Benefits were calculated using a 3-8% increase from 2011 to 2014 - however, unless so-called "Obamacare" is repealed, by 2013 all health benefits will be through the government and not through employers or the private sector. 

Purchased Services is being budgeted at an average annual increase of 6.22%.  We have saved some money here by reducing services through the ESC ($183,000) and joining the Ohio School Plan consortium for electric services.  Our attorney fees also have been reduced by switching to a local attorney in Toledo instead of using the Cincinnati guys and their expensive drive time.

All of that is to say that our 5 yr. draft forecast shows deficit spending of $410,909 in fiscal year 2011; deficit spending of over $2.3 million in 2012; and deficit spending of over $3.34 million in 2013.  By the year 2014, the entire carryover amount of over $8 MILLION dollars is GONE, and we are in the hole over $2 MILLION dollars.

Sobering.

How many of you still have jobs?  How many of you are on the verge of losing your homes?  How many of you received no raise in pay last year?  Many of you, I know - and all of us have had our expenses go up at the gas pump and grocery store and electric bill and heating bill . . .

All of these items on the 5 year forecast are done with YOUR MONEY, and mine.  Some of our teachers' money, too, of those who live in our district. 

Think about it.

One item in New Business from the Superintendent was to add back Department Chairs for grades K-5 (6) and grades 6-12 (4).  These are at 5% supplemental pay for the lower grade department chairs and at 11% for the others (by SEA contract language).  These positions had been eliminated back when the district was in "fiscal caution" before - and at the meeting, I said that it would be a terrible shame if we brought them back now - but only had to eliminate them again in a couple of years. . .

One of our board members has had a personal crusade for awnings at the two elementary schools, because some parents drop their kids off before the doors of the buildings are open and if it's raining, well, they get wet.  (no umbrellas, I guess . . . )  Anyway, the superintendent had done some pricing research, etc. on getting these awnings, and it's much more complicated than at first blush.  (If you want details, give Paulette a call.) One of the lowest cost estimates was around $21,000!!  To keep a handful of kids dry when they're dropped off early on a rainy day!!  

The Emperor has no clothes!!

But - our two elementary principals had other options to explore that wouldn't cost us much, if anything, and the kids would stay dry AND no teacher would need to be involved so it wouldn't interfere with their contracts.  Sounded like a win-win to me.

In addition, there are some parents who refuse to abide by the rules when dropping off or picking up their children by getting in the way of our buses!  Unbelievable - and unsafe!!  (And exactly what lessons do these parents think they are teaching their kids by these actions, I wonder?? )  So options for traffic patterns and parking at both elementary schools will be reviewed, to see what EVERYONE ELSE can do to help those little ones whose mommie or daddy refuse to do what they're supposed to do.  sheesh

Rick Kazmierczak has a Beautification Program set up for Swanton, and we are going to be involved with the area around the high school.  A work day of June 5th has been scheduled.  There were also a few things that will be completed in time for commencement this year (on May 28th).  It's a great idea, and should be a super way for all of us to pitch in together for a common cause.  I'm looking forward to it!

Phase 2 of the "Race to the Top" federal grant program is now in full swing, and the superintendent asked the Board to approve participation.  I spoke just briefly against it, before the vote was taken (I was the only "no" vote - chances are whenever there is a "no" vote, it is mine).  While I applaud all efforts to do what we can to work together with the SEA on projects, and while I would love for our district to have the money, I do NOT love the federal strings attached to this.  There has never been a federal program that improved anything.  Never.  And I prefer to keep federal fingers out of our school district whenever we can.  There may come a time when we are forced to participate - the feds carry a big stick - but we'll deal with that when the time comes.  For right now, we will not be participating in Phase 2 - not because of the BOE, but because the SEA has declined to participate unless their additional Memorandum of Understanding (MOU) is approved.  This is the same MOU that our attorney advised against before.  So no Phase 2 for Swanton School District.

There were several committee reports given, including Swanton Recreation, Parents Club, Strategic Planning, the Ohio Improvement Process (OIP), and random drug testing for all extra-curricular participants. 

We also talked a bit about the request to look at laptops for Board member packets.  Apparently the district already owns several laptops so no purchase would need to be made.  Further information will be forthcoming on this issue.

Our next regular board meeting is scheduled for May 25th. 

We had an executive session at the very end of the evening.  No vote or action was taken during executive session (other than me eating that orange bread and some pretzels).

 

 

Race to the Top

As I write this, Phase II of the federal "Race to the Top" program is underway.  The Swanton Board of Education will be discussing it at our April meeting, next Tuesday.

Some elements of compliance have been streamlined to encourage participation, but the bottom line remains:  if you don't sign up to play, you won't get any money.

Can someone give me one example - just one - of a program where the Federal government stepped in and made things better?  Anyone?  Just one example will do - anyone?  anyone???

a-hem

Unfortunately the elements of holding to "international standards" of education remains in the Race to the Top program. 

I'm sorry - the last time I looked, the United States of America was where we lived.  The only stated "international standards" that may be found are from the United Nations - that paragon of integrity . . .

School districts in America were forced by the federal government to participate in Goals 2000 or else lose all federal money.  Frankly, that didn't sound like a bad thing to me.  If you don't take money from the feds, you aren't required to implement their mandates  - another good thing.  At each step of our federal government dipping their fingers into the educational mix, our scores as a nation have dropped.  Coincidence??  I don't think so.

It has been shown over and over again that federal intrusion in our educational system has harmed it - and all for the sake of the almighty dollar.

I have been told that if we don't participate voluntarily, that we will be forced to do so down the line.  That is probably a true statement - but it doesn't change the fact that the Race to the Top is a bad idea for education, and a bad idea for Swanton.

Five Year Forecast

At our regular board meeting next Tuesday, we will be discussing the revised 5 year forecast prepared by our treasurer, Cheryl Swisher. 

Have you taken a look at the October 2009 version (be sure to also read the notes that accompany the spreadsheet) that was approved by the former board?

When you look at that spreadsheet for the first time (I'm referring to October's forecast in that link above), there is a lot of information.  The bottom line you can look at to get a quick idea of where our district stands, financially, is line 6.010 which shows if we are over or under, and also line 7.020 which shows our projected cash balance carryover amount as of June 30th - the end of our fiscal year.

In the October report, line 6.010 shows the district begins deficit spending in 2011, which continues across the line.  The cash balance - that carryover money - makes up the difference in the deficit spending until 2013, when the cash balance is below the amount required by the state.  In effect:  Fiscal Caution is reached.

A school district is required to have on hand a certain percentage of its budget in order to be considered financially stable by the state of Ohio.  We go below that required amount in 2013. 

Fiscal Caution is thus looming on our horizon.  In less than three years.

Now, many factors feed into these forecasts.  State funding, or lack thereof, potential increases or decreases in tax collections, etc. as well as projected expenses all play a part in the 5 year forecast.  A projected loss of property tax has proven not to be so dire recently - instead of a 20% projected loss, we have experienced around a 3% loss instead.  Good news there!

Any of these numbers may change for the better - or worse.  If the overall economy in our region continues to stagnate or get worse, our district will be worse off.  If the general economy around here improves and these double-digit unemployment numbers are reduced, then our district will also improve financially. 

Unfortunately, there is no way to know for certain which way it will go, and that is why we need to be fiscally conservative if we want to be able to weather the economic storm we're in today. 

If we are cautious, and do all in our power to minimize our deficit spending, that carryover money will see us through.  But if we refuse to spend wisely, we'll blow through that $8 million in record time - is that what we want?

Once that carryover money is gone, guess what:  someone will be suggesting that another LEVY be placed on the ballot!! 

I tell my kids this same thing:  you must learn to live within your means, or you'll go bankrupt.  Do not spend more than you earn! 

What a simple concept, yet how hard to DO.  It takes intestinal fortitude - and it's not "fun" to constantly be pinching pennies to keep financially afloat. 

But it is vital that we do just that.  I refuse to go to the voters to ask for more money if this district can't figure out how to spend wisely what we already receive.

Every district has financial issues right now because of the economy at large.  Swanton is better off than most, because of that carryover money.  Instead of blowing through that $8 million like it's water, let's do the right thing - the hard thing - and limit our spending, so that this district can weather the storm and come out safely on the other side.

Listening to Meetings

Hey, has anyone tried listening to the one podcast that is online of the March board meeting?  You can find it here:  Swanton School website - BOE  look in the right side column, and click on the link.

That was our first attempt, and we realize that there is still work to be done.  But it would be helpful if we got some feedback from folks who have tried to use it.

One resident wrote to us, but not to offer positive suggestions - only to criticize.  A return email to the resident, asking for further detail, was not answered.  I specifically asked what type of internet access was used at the home (dial-up? high-speed?) and also if the same problem experienced with our podcast was also experienced with other podcasting options online, including those of Swanton Township from their website. 

No answer.

If we don't hear from folks about what they are experiencing, it is difficult to know what to improve or fix. 

Please take a minute to try it out, and then call or send an email to a board member to let us know how we may improve.  The whole purpose of recording and then podcasting our meetings is so that our residents have access to more information - that won't happen if it works so poorly that no one bothers to listen!

So let us know!