2011-12 Budget Reductions

1. Albert Lea Area School District ISD #241 2011-12 Budget Reductions

2. Current Financial Situation- Lori Volz Impact on District Operations from 2010-11 to 2011-12 & recommended staff reductions- Mary Williams Overview

3. Two years of Federal Stimulus Funding have come to an end • 09-10 : $2,658,412 • Stabilization Aid (Back fill on General Ed Formula reduction) • ARRA Special Ed Benefits funding • ARRA Title Program Funding • 10-11 : $1,212,055 • Jobs Bill (funding current or added positions in 10-11) • ARRA Special Ed Benefits funding • ARRA Title Program Funding Federal Stimulus

4. The General Ed formula has been frozen for the following fiscal years: • 08-09, 09-10, 10-11 • The projection in the MN legislature for the next biennium of funding is, at best, a funding freeze. The bills that have passed both houses of the legislature have Albert Lea’s funding reduced another $85,000-$270,000. General Ed Formula Frozen

5. In the current 10-11 fiscal year, to offset the phase out the of Federal Stimulus “Stabilization Aid”, the legislature implemented $2.3 million of local tax shifts to balance the formula. What this means is that levy dollars are recognized a year early. This compels the district to borrow millions of dollars to make up for this shift. The legislature also meters out state aid payments on a 70/30 basis rather than 90/10 which results in an additional negative impact to our cash flow. The legislature doesn’t have any other accounting “shifts” it can utilize to help resolve the funding challenges of public education for the next biennium. Legislated “Tax Shifts”

6. District has secured a transportation quote from our current bus company which will save the district over $265,000 next year. District has gone out for bids on health insurance, and has secured a reduction in health care premiums of 10% next year. This is after many years of double digit insurance premium increases. District Cost Control Measures

7. Due to the phase out of Federal Stimulus funding, the district must make cost reductions of $685,000 for the 11-12 fiscal year to avoid deficit spending. Even with the implementation of budget reductions, the district will have to borrow millions of dollars in 11-12 just to pay their bills. Budget Reductions Needed for 2011-12

8. Impact on District Operations

9. Expiration of funding- Federal Stimulus Jobs Bill Reduction of 2.5 FTE • Impact- increased class sizes in the elementary • Redistribute sections to maintain lower class sizes in grades K-2 Impact on District Operations

11. Impact on District Operations • Expiration of stimulusfunding for Title I program • Reduction of 2.50 FTEs • Impact- reduction in teachers available to support Title I programming (grades K-3 in math and reading) • Currently reworking program with efficiency in mind

13. Until an agreed upon ATPPS (Q-Comp) program is in place, funding for 4.3 FTEs in ATPPS positions is on hold. Revisions to the current ATPPS program are underway. Impact on District Operations

15. Move of grade 6 the middle school • Impact- reduction of 1.8 FTEs in music, art and phy ed to support elementary teacher’s prep time. • Reduction of .5 FTE in elementary classroom teacher • Band and Orchestra teachers do not have to travel to each elementary for lessons. • Impact- reduction in FTE .4 • Increase of minutes to core instruction at the middle school. • Impact- reduction in elective areas Educational Impact

16. Grade 6 2010-11 2011-12 • Combination of elective classes in FACS, art, keyboarding, and phy ed/health - 300 minutes a week • Students can chose two of the three: band, choir, orchestra -300 minutes a week combined • Lessons offered in addition- students pulled out • Phy Ed and Art- averages to about 80 minutes a week for all students • Music – averages to about 80 minutes a week for all students • Lessons for band and orchestra- students pulled out for 15 minute lessons twice a week

17. Grade 7 2010-11 2011-12 • Students choose three of the four: choir, band, choir & band, orchestra, art, *music 7, tech ed, and computer tech- 250 minutes a week • Lessons offered in addition- students pulled out • *music 7 was offered in 2010-11 as a one time scheduling solution. It was not offered previously. • Combination of elective classes in FACS, Industrial Arts, keyboarding, and phy ed/health - 300 minutes a week • Students can chose two of the three: band, choir, orchestra -300 minutes a week combined • Lessons offered in addition- students pulled out

18. Grade 8 2011-12 2010-11 • Students can chose band and/or choir- 250 minutes a week • Students can choose orchestra- 250 minutes a week • Lessons offered in addition- students pulled out of instructional time in other areas Other elective offerings are available in the areas of art, business, study skills, Spanish, Ag, Life Skills . . . • Students choose two of the four: band, choir, orchestra, FACS, art, tech ed and computer tech - 250 minutes of each a week • Lessons offered in addition- students pulled out

20. Three FTEs are on hold pending an increase in Kindergarten enrollment. Once enrollment needs require adding additional sections, these positions will be re-instated. Kindergarten Enrollment

22. recommended staff reductions

23. Questions