Early Ideas for Austin Schools’ Grim Budget (TX)
September 20, 2010
With the dust still settling after the adoption of the 2010-11 budget, Austin school district officials are already looking ahead to 2011-12.
At a recent budget work session, Superintendent Meria Carstarphen talked to the school board about a cost-saving idea from an architect who advised a company about ways to get more out of existing space.
This is not a recommendation or even a proposal, Carstarphen said during the discussion, but "I just began to wonder u2026 is it possible to rethink our programs and designs to allow students at certain schools to A) go year-round or B) use your school day longer with the idea that there might be students and staff who would prefer not coming at the traditional times?" she said.
The conversation was no doubt the first of many leading up to the adoption of the fiscal year 2011-12 budget. The budget process is starting even earlier and promises to bring even tougher decisions than in years past. In addition to cuts, the district is talking about holding bond and tax rate elections in either May or November 2011.
School finance experts say Austin and many other districts across the state face such chronic budgetary problems because of a combination of factors.
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The Legislature's passage of a funding formula in 2009 fell short of making up for inflation in the 2009-10 and 2010-11 school years. Additionally, a statewide decline in property tax values has meant less money for appropriations, leading the state to cut funding for school programs, such as pre-kindergarten, that many districts are struggling to keep by funding themselves.
"It’s a very constrained system, and to try and raise revenue, you really have no choice but to go to your voters" for a tax rate election to raise more money locally, said Dan Casey, a partner in a Texas school finance consulting firm.
Under such pressure, the Austin district cut jobs, eliminated certain programs and reorganized administrative departments to meet 2010-11 budget targets. Next year, administrators say, they will need more options for cuts, and they have already asked the board to open the door to budget reductions that could have an impact in classrooms.
Officials estimate the district will serve 86,205 students in its 121 facilities this school year . The district said early forecasts show revenue falling almost $22 million short of $859.2 million in expected expenses in 2011-12 because of anticipated increases in utility costs and health insurance payments and losses in state funding.
The Legislature will meet in January, and Carstarphen warned that the budget crunch could get worse if there are further revenue cuts or unfunded mandates from the state.
"We need to be very clear. … And people need to be able to anticipate," Carstarphen told board members. "I’d like to say there wouldn’t be impact on schools, but it simply won’t be possible in this fiscal year if you want a balanced budget."
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Board President Mark Williams called the challenges the district faces "staggering."
"There are going to be cuts," he said. "The challenge (will be) to make them as smart as possible, but they are going to be painful."
Cuts already being discussed include across-the-board reductions to campus budgets, which an internal working group has estimated could save $15 million, and closing schools.
A task force working with two outside consultants, DeJong-Richter and Magellan, is developing a facilities master plan that is expected to be presented to the board in November. The district estimates that consolidating or closing five schools could save roughly $4 million to $5 million .
However, those numbers are very preliminary, officials said, and whether the district will take that step is unclear. The task force will make a recommendation based on input from a series of community meetings, which are scheduled to take place later this month, among other factors.
Other options would increase teacher workloads, such as lengthening class periods, changing staffing formulas, creating multiage classes and eliminating teacher planning periods. Those ideas could save $2.7 million to $17.3 million. From 94 to more than 300 teaching positions would be cut. The district currently employs about 6,065 teachers.
In addition to the extended school hours idea that Carstarphen discussed with the architect, administrators during the work session threw out other ideas for using existing resources more efficiently.
For instance, because state funding is determined by student attendance, it would help to get the message out to parents that skipping class is not only costly to a student’s academic performance, but also to the district’s budget.
Austin’s average daily attendance in 2009-10 was 94.4 percent. District officials have said each increase of 1 percentage point in student attendance equates to $5.6 million. If every child in the district had perfect attendance, officials said, the district would get $50 million to $60 million more in state funding.
Carstarphen said teacher attendance can affect the bottom line as well. Last year, the district paid substitutes $14 million to $15 million to cover teacher absences, she said. A recent report on the district’s Human Capital Strategy showed district employees, on average, took more than seven sick days each year for themselves or family members.
To raise more money, the district could consider raising rental rates and fees for its facilities and selling surplus property, officials suggested. Requiring an employee contribution to health benefits could save $9 million.
All district programs will also be under the microscope, including how effective they are and how many students they serve, Carstarphen said. "I think all those things can be rethought in a way that can create additional revenue," she said.
More revenue could come from private donations, an election to raise the operations tax rate or a bond election to raise money for projects. Officials said such elections could be held as early as May, months before the 2011-12 budget is adopted, so trustees would know what they have to work with.
Administrators said they plan to start discussions of budget reductions and staff compensation in the fall. During the winter months, decisions will be made on staffing formulas , program cuts and the possible need for a declaration of financial exigency, or fiscal emergency, that would allow the district to break contracts to cut jobs. A board vote to call a tax election could come in the spring.
Trustee Robert Schneider said he’d like to see the district’s check register and information on school capacity be made readily available online for the public this year. He said the district should also be willing to allow principals the flexibility to seek outside grants for certain programs that the district cannot support.
Carstarphen said that although times are tough, they are forcing districts to be more creative in using what they do have. "I’m hoping we can find some new directions or new ideas on how we do our work," she said.