illinois asbo facing the top financial challenges of 2011 may 18, 2011

Illinois ASBOIllinois ASBO

Facing the Top Financial Facing the Top Financial Challenges of 2011Challenges of 2011

May 18, 2011

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The PresentersThe Presenters Dr. Frank Evans, Director of Business & Operations, Salt Creek

School District 48 Dr. Suzan Hebson, Assistant Superintendent for Communication &

Instruction, Township High School District 113 (Deerfield-Highland Park)

Ms. Tammie Beckwith Schallmo, Managing Director, PMA Securities, Inc.

Mr. Barry Bolek, Assistant Superintendent for Business, Township High School District 113 (Deerfield-Highland Park)

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Today’s DiscussionToday’s Discussion How do the political roles of the Board of Education and How do the political roles of the Board of Education and

the superintendent impact the financial management of a the superintendent impact the financial management of a school district? school district?

How do they impact the effectiveness of a chief school How do they impact the effectiveness of a chief school business official?business official?

How do they impact the financial messages the District How do they impact the financial messages the District needs to deliver to the community? needs to deliver to the community?

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IntroductionIntroduction Dr. Frank Evans

Currently works part time for Salt Creek School District #48 as Director of Operations & Business Services/District Treasurer

Served as Superintendent of Schools of two high school and two unit school districts, prior to retiring in June 2004

Worked closely with the chief school business officials in each district

While serving the Macomb Community Unit School District #185 the District received six ASBO International Certificates of Excellence in Financial Reporting

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Political Roles of the Board of Education Political Roles of the Board of Education and the Superintendentand the Superintendent Impact on the financial management of a school Impact on the financial management of a school

districtdistrict Accountability Dealing with conflict Communication

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AccountabilityAccountability

AttributesAttributes Focus on the end goal/bottom line/results Valuing of others Keeps promises and honor commitments Willingness to delegate

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SkillsSkills Focus on outcomes more than means Practice characteristics of effective decision making Set high expectations for everyone Practice conflict resolution skills Design accurate performance indicators to hold

everyone accountable Identify what needs to be tight versus loose control Appreciate, value and recognize each person in the

organization

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KnowledgeKnowledge Board, superintendent, and business official roles and

responsibilities in implementing plans What to evaluate Board Policy and Administrative Procedures State and federal laws Empowerment to create felt ownership and

responsibility Synergy

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Dealing with conflictDealing with conflict

About conflictAbout conflict Conflict is inevitable Conflict develops because we are dealing with

people’s lives, jobs, children, pride, self-concept, ego, and sense of mission or purpose

Early indicators of conflict can be recognized Although inevitable, conflict can be minimized,

diverted, and/or resolved

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Beginnings of conflictBeginnings of conflict Poor communication Seeking power Dissatisfaction with management style Weak leadership Lack of openness Change in leadership

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Conflict indicatorsConflict indicators Body language Disagreements, regardless of issue Withholding bad news Surprises Strong public statements Airing disagreements through media Conflicts in value system

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Conflict indicatorsConflict indicators Desire for power Increasing lack of respect Open disagreement Lack of candor on budget problems or other sensitive

issues Lack of clear goals No discussion of progress, failure relative to goals,

failure to evaluate fairly, thoroughly, or at all

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Conflict is destructive when itConflict is destructive when it Takes attention away from other important activities Undermines morale or self-concept Polarizes people and groups, reducing cooperation Increases or Sharpens difference Leads to irresponsible and harmful behavior, such as

fighting, name-calling

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Conflict is constructive when itConflict is constructive when it Results in clarification of important problems and

issues Results in solutions to problems Involves people in resolving issues important to them Causes authentic communication Helps release emotion, anxiety, and stress Builds cooperation among people through learning

more about each other

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Dealing with conflictDealing with conflict Techniques for avoiding and/or resolving Techniques for avoiding and/or resolving

conflictconflict Meet conflict head on Set goals Plan for and communicate frequently Be honest about concerns Agree to disagree – understand that healthy

disagreement would build better decisions Get individual ego out of management style Let your team create – people will support what they

help to create

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Techniques for avoiding and/or resolving Techniques for avoiding and/or resolving conflictconflict Discuss differences in values openly Continually stress the importance of following policy Communicate honestly – avoid playing “gotcha” type

games Provide more data and information than is needed Develop a sound management system

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Causes of Superintendent and CSBO conflict Causes of Superintendent and CSBO conflict with the Boardwith the Board Board members trying to be administrators

overstepping authority Making promises as Board members individually Involving themselves in labor relations or budgetary

minutia Not doing their “homework” and failing to prepare for

meetings Not following procedures for handling complaints

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Dealing with conflictDealing with conflict Causes of Superintendent and CSBO conflict with Causes of Superintendent and CSBO conflict with

the Boardthe Board Not keeping executive session information confidential Failing to act on sensitive issues Failing to be open and honest Making decisions based on preconceived notions Not supporting the superintendent and CSBO – lack of

loyalty Springing surprises at meetings Having hidden agendas

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Causes of Board conflict with the Causes of Board conflict with the Superintendent and CSBOSuperintendent and CSBO Not treating board members alike Not informing the board members of public concerns Not providing adequate financial data or adequate

information Using poor public management practices Making public statements before informing the board Failing to be open and honest with the board

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Causes of Board conflict with the Causes of Board conflict with the Superintendent and CSBOSuperintendent and CSBO Not providing alternatives in an objective manner Not adjusting to the new reality of an involved board Not supporting the Board – lack of loyalty Springing surprises at meetings Having hidden agendas

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Elements of a strong partnershipElements of a strong partnership Full disclosure Frequent two-way communication Careful planning Informal interaction Periodic evaluation Mutual support

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Courageous decision controversies usually Courageous decision controversies usually involveinvolve Changes in the way “we’ve always done things” Notions of fundamental values Determined, articulate advocates for every side Inability to compromise Rampant rumors Threats of retaliation at the polls, levy, next bond issue Board election

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CommunicationCommunication

Eleven Commandments of communicationEleven Commandments of communication Be yourself: The most effective thing in effective

communication is to be yourself. Avoid technical jargon or fancy pretentious language. It does not impress anyone. In fact it confuses people and cuts you off from the intended audience

Be comfortable and confident: Relax and remember that you probably know more about your subject than anyone else in the audience

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Eleven Commandments of communicationEleven Commandments of communication Be honest: If you don’t know the answer to questions,

admit it. Your credibility is crucial. Don’t jeopardize it. Be brief: Keep it short and simple. You’ll look and

sound better if you get right to the point. Be human: Don’t be afraid to use humor. It promotes

a friendly and confident image. Be personal: Personal stories and anecdotes help get

an idea or concept across because of your personal insight.

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Eleven Commandments of communicationEleven Commandments of communication Be positive and consistent: Keep your goals in mind

and stick to them. Control and focus all of your material.

Be attentive: Concentrate – don’t be concerned with any distraction. Listen carefully to any questions asked. Say what you mean and mean what you say.

Be energetic: Use gestures, facial expressions and body language to add vitality to your words

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Eleven Commandments of communicationEleven Commandments of communication Be committed and sincere: Speak convincingly. Don’t

be afraid to pause. Every time you open your mouth, look and sound as if you really care. We all know that poor communication is often the result of many factors.

Keep your voice conversational: but imagine it has a “face” which can show different emotions and expressions.

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Case Study – THSD 113Case Study – THSD 113 Long Range Facility/Technology Plan Community Engagement Process Referendum Campaign, April 2011

133 Million Dollar Referendum Campaign Communication Key Messages

Website Materials Financial Stewardship—CAFR Award, AAA rating Academic Excellence FAQs/Video Tours/Video Comparative/Listen and Learn

Print Material Campaign Project Details No-Tax Rate Increase

“Education First” - Develop a “Better Plan” Did Not Argue Need - Disagreed re Priorities and Overall Cost

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Long-Range Facility/Technology Plan

In house 5-10 year comprehensive plan Defended the cost of an external facility master plan Vetted and hired architectural firm Track record of fiscal management Created Community Leadership Team Community Engagement Opportunities

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Referendum Decision Community Leadership Team Recommendation vs. Board of

Education Action Communication Campaign

Focused on Financial Stewardship and Academic Excellence CAFR Award press release, AAA status, levy impact, monies spent in past for projects Open Houses, Train palm cards, Website publications Print materials mailed to homes—postcards and brochure

Main Message Choice—No Tax Rate Increase Education First and a “Better Plan”

Poke holes strategy was more effective However, we ultimately got opposition to agree and note that

NEEDS exist—now must delve into priorities and timelines…different consensus process

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The Impact of the Referendum The Impact of the Referendum

Community members had many questions about Community members had many questions about the debt structurethe debt structure Projected changes in EAVProjected changes in EAV Interest rate assumptionsInterest rate assumptions

What is the impact if the referendum is What is the impact if the referendum is successful? Or if it does not pass?successful? Or if it does not pass?

The administration and Board were consistent The administration and Board were consistent about finance-related messagesabout finance-related messages

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Other Events That Trigger Public AttentionOther Events That Trigger Public Attention

Developing a plan for Technology and Facilities Presenting the plan to the board for acceptance Standard Levy Hearing Voting on the Levy Board vote on resolution for Referendum Teacher negotiations Teacher Aide 5 year Agreement

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Ongoing Communication about Excellence

Deliver a “get what you pay for” response balanced by strong oversight and careful financial stewardship—Board and Superintendent must be well educated and kept apprised of financial processes—involvement is consistent, ongoing, and trust/partnership is essential

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Impact on the CSBOImpact on the CSBO We continue to have a “Day Job” and tasks that will need to We continue to have a “Day Job” and tasks that will need to

be done on a daily basis… don’t get sidetracked and be done on a daily basis… don’t get sidetracked and overwhelmedoverwhelmed

Have a relationship with your Superintendent, Staff and Have a relationship with your Superintendent, Staff and Board with Calendars on what tasks have deadlinesBoard with Calendars on what tasks have deadlines State reporting Levy, Budget, Audit and CAFR… the cycle will NEVER END Negotiations are the meat of any budget List annually areas of savings whether re-occurring or one time Strategize what to post to web and how to frame it Meet with the Finance Committee at least monthly

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Practices that foster partnership and keep Board well- informed Friday packet—business manager section Check analysis assignments—Board of Education

discussion and review Finance meetings—PMA reports twice per year

to the Board—looking at trends—future forecasts and history review

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Keep facts and procedures transparentKeep facts and procedures transparent

We all hear the buzz word “transparent”… how We all hear the buzz word “transparent”… how to do thisto do this

Put items on the web… Put items on the web… How the Levy worksHow the Levy works How the budget is developedHow the budget is developed If reductions are made, who, how, when what does it If reductions are made, who, how, when what does it

meanmean Better to point a person to the web when you get a Better to point a person to the web when you get a

phone call or get a FOIAphone call or get a FOIA

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Framing events and timelinesFraming events and timelines

Keep the message simple and factualKeep the message simple and factual Don’t stray from the message Don’t stray from the message Keep the Board and Staff on same page with facts Keep the Board and Staff on same page with facts

and not tangential commentsand not tangential comments Keep respect on front line for staff, board and the Keep respect on front line for staff, board and the

publicpublic Reinforce there are factors one can’t controlReinforce there are factors one can’t control

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Business Page at District #113Business Page at District #113

Can be found http://dist113.org/depts/businessoffice/

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Impact on the CSBOImpact on the CSBO

When communicating with superintendent and When communicating with superintendent and board members the CSBO must be very aware of board members the CSBO must be very aware of what what they say and they say and how how it is being interpreted.it is being interpreted.

““The single biggest problem in communication is The single biggest problem in communication is the illusion that it has taken place.” the illusion that it has taken place.” George Bernard Shaw, 1856-1950George Bernard Shaw, 1856-1950

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Dialogue between the CSBO, superintendent, and Dialogue between the CSBO, superintendent, and board members in the public forum must be board members in the public forum must be heard by the publicheard by the public

If something is not clear, then ask for clarification If something is not clear, then ask for clarification or restate what you believe you heard for or restate what you believe you heard for verification from the senderverification from the sender

If an issue has the potential to cause the CSBO, If an issue has the potential to cause the CSBO, superintendent, and board members, to become superintendent, and board members, to become disagreeable, then address the issue privatelydisagreeable, then address the issue privately

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““The more elaborate our means of The more elaborate our means of communication, the less we communicate.” communication, the less we communicate.” Joseph Priestly, 1733-1804Joseph Priestly, 1733-1804

As a CSBO make your expectations for As a CSBO make your expectations for communication clear, assess the superintendent communication clear, assess the superintendent and board on those expectationsand board on those expectations

Employ formal and informal means of Employ formal and informal means of communication on a regular basiscommunication on a regular basis

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All messages are received within a context that All messages are received within a context that determines how the messages are interpreteddetermines how the messages are interpreted

Congruity between the message and the medium Congruity between the message and the medium is important, especially during a board meeting, is important, especially during a board meeting, because things are not only being interpreted by because things are not only being interpreted by the people around the table, but also by staff, the people around the table, but also by staff, citizens, and mediacitizens, and media

There should be formal and informal There should be formal and informal communication procedures agreed upon by allcommunication procedures agreed upon by all

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It is critical that the CSBO, board members and It is critical that the CSBO, board members and superintendent always tell each other the truth, superintendent always tell each other the truth, which means revealing the beauty marks as well which means revealing the beauty marks as well as the wartsas the warts

Effective communication is three-way between Effective communication is three-way between the CSBO, superintendent, and board membersthe CSBO, superintendent, and board members

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Impact on the CSBOImpact on the CSBO Effective communication results in understandingEffective communication results in understanding Barriers to effective communication can be Barriers to effective communication can be

external and internalexternal and internal The CSBO, superintendent, and board members, The CSBO, superintendent, and board members,

must be very aware of how the other perceives must be very aware of how the other perceives or interprets their messageor interprets their message

The purpose of informal communication might be The purpose of informal communication might be situational awareness (heads up), and should be situational awareness (heads up), and should be done by the CSBO to the superintendent and done by the CSBO to the superintendent and board membersboard members

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““Good communication is as stimulating as black Good communication is as stimulating as black coffee and just as hard to sleep after.” coffee and just as hard to sleep after.” Anne Morrow LindberghAnne Morrow Lindbergh

illinois asbo facing the top financial challenges of 2011 may 18, 2011

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