illinois asbo update winter 2010

www.iasbo.org | 1

IndIspensable tool for school busIness ManageMent

school BUDGETING IssUE / WINTER 2010

EQUATIONthe right

EAv + E prT

What are their

impacts on education?

Connecting Budgetary Decisions to Student Success is the Formula for Community Support / 23

point of view: Time for Budgeting Again? / 19 Gift or Gaff? A Donation Strategy How-To. / 36

2 | Update Magazine / Winter 2010

your solution is coming.

www.iasbo.org | 3

PoINT of VIEW:

It's Time to start the Budgeting Process

The economic environment is bleak and the future uncertain. Thoughts, suggestions and insights for next year’s budget and the foreseeable future. by howard crouse

INSIDE Illinois Association of School Business OfficialsUpdate Magazine / Winter 2010 / v.18 / i.02

Budget + Student Achievement = Community Understanding Politics, poor communication practices and misinformation are rampant in communities throughout the State, making the job of school business officials and communication officers more challenging than ever before. See what formulas, data and work that Orland School District 135 used in developing a communication platform to improve community understanding by tying budgetary decisions and student success. cover story by John t. Reiniche / bridget Mcguiggan

SCHOOl BUDGETING ISSUE

23

19

THE NExT ISSUE: lEGISlATION Hear the Delegate Advisory Assembly’s take on top legislative issues affecting Illinois and education. Plus, preview the 2011 Illinois ASBO Annual Conference.


Understanding Equalized Assessed Valuation could help turn up budget funds in an unlikely place

pATH-TO-SUCCESS look In the MIRRoR:Leadership institute provides participants with 360 degree view.

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FrOm-THE-FIElD pRopeR plan = posItIve Results:Immediate and long-term planning can streamline success.

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SUppOrTING rOlE RecognIzIng the best:Nominations for scholarships are due December 15.

15

FrOm-THE-OFFICE leadeRshIp Is key: Budgeting is only one part of being a leader in your district.

9

FrOm-THE-pODIUm budgetIng and MeMbeRshIp value: Finding money for participation helps tackle current issues.

7

arTIclEsPErsPEcTIVE

29

by dr. henry boer / dr. Richard J. dombrowski

36Gift or Gaff?

cReatIng a donatIon acceptance stRategy

Evaluations, questions and documentation are key when accepting donation items. by Michael J. prombo

www.iasbo.org | 5

ON pApEr

ON SCrEEN ISBE Budget Forecasting and Government State Aid Worksheets.

41

Great Ideas from Great Illinois asBo MembersLuke V. GlowiakAssistant Superintendent / BusinessSycamore CUSD 427

Illinois ASBO member and Illinois Energy Consortium President explains how focusing on children can help School Business Managers deal with the increasing complexities of district budgeting.

42

33

TH E FINAl wOrD

on My lIst:

This new resource section takes a critical look at current books found within pop culture or mass media that can enhance the performance of school business professionals. Fall issue selection: A story for anyone with an idea to share.

39 School District Budgeting

School Security Program

40

rESOUrCES

A large number of districts face the task of cutting the budget in order to weather the financial storm coming out of the state capital. The budget cutting questions are many. Where and when to start? How to get stakeholder involvement and buy-in? What information is needed to make an informed decision? And, most importantly, who decides on the budget cuts?

To deal with this, District 300 has come up with Educational Program Review Technique. Find out how it works through a 10-step pattern for assessing and making program cuts.

by Fred Fox / Michael J. prombo

These are tough budgeting choices; but having a pattern

to follow can make these decisions black and white


INVESTMENTThe ILLINOIS ASBO LEADERSHIP INSTITUTE represents a unique opportunity for established school leaders and their districts to invest in professional growth through a year long program resulting in rewarding both the individual and the district in a variety of personal development areas.

FOCUSThis program requires a deep year-long committment to personal leadership interpretation, analysis and application. The LEADERSHIP INSTITUTE will focus on establishing goals, action plans and leadership behaviors. Likewise, developing a strong leadership support network through both face to face and online interaction will be key throughout the program’s term.

REWARDParticipants will experience better results as school leaders, while developing higher motivation and confidence to lead effectively. Plan to gain higher focus and experience less stress as a highly trained professional while learning to give and receive feedback effec-tively, as well as, encouraging productive and effective relationships. Focus will also be given on the ability to develop others to their highest potential and maximize the benefits of their differences.

EVERYJOURNEYbegins with a SINGLE STEP

Find out more on becoming part of the 2011 cohort at:

iasbo.org/leadership

M

Y

Y

Y

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FrOm-TH E-pODIUm

Budgeting and Membership Value

By now, members have received the Fall issue of Update. Hopefully each has had an opportunity to read through it and more importantly found some value within its contents. I also hope members like the new look and feel. The Illinois ASBO Board of Directors and staff work very hard to bring value to members every day. The revitalized Update is one example of those efforts. We know it is a publication that members will save and refer to as a reference tool in becoming a better educator. It is part of Illinois ASBO’s charge to become an indispensable organization.

The biggest struggle facing school districts today — operational mission versus strategic mission. Let me explain. How do educating professionals offer continuity in districts (operations) versus how do they handle change (strategic)? With the economic situation getting more uncertain as each day passes, education professionals need to be leaders in building trust within our communities regarding our financial position.

But, it is more than just a dollars and cents issue. Keeping abreast of current economic trends at the local, state and federal level is becoming increasingly challenging. Education professionals need to explain to school boards and communities the dramatic swings and impact in the Consumer Price Index (CPI), and its ultimate effect on local tax revenue. This is a job for someone who understands the relationship between operations and change. The budget

cycle is a complex, inter-woven process that has profound strategic implications within our respective districts. And it is through professional growth that we are able to be leaders in our communities and see them through this current economic struggle.

Since joining the Illinois ASBO Board of Directors in 2005, I have made it a priority to bring value to the membership in ways that are tangible. The most obvious example of member value is in the area of professional development. Many members are familiar with this through direct involvement with Professional Development Committees, through attendance at Annual Conference each May or seminars offered throughout the year. Another example is the work of the Delegate Advisory Assembly. The DAA works on behalf of state school districts to recommend legislative initiatives to the Illinois ASBO Board of Directors for approval and sponsorship within the Illinois General Assembly.

One of the challenges Illinois ASBO faces, especially during these difficult economic times, is how to target education professionals that are not involved within the organization. Some might suggest Illinois ASBO’s greatest strength is the formation of close-knit ties members develop with one another as we elect to serve the greater good of Illinois youth. I always enjoy meeting long-time acquaintances at various functions, and even happier to meet new members who have recently joined the Illinois ASBO family. Members need to continue to develop and share

Garrick c. GrizaffiASST. SUPT./ADMIN. SERVICESVALLEy VIEW CSD 365-U

See PoDIUM page 17

PErsPEcTIVE / Board President


ILLINOIS ENERGY CONSORTIUM

JOIN A PROGRAM BY CONTACTING:RON STEIGERWALD, STATEWIDE MARKETING DIRECTOR 847 567 3051 / [email protected]

SPONSORSAN ILLINOISNOT–FOR–PROFITCORPORATION

ENERGIZINGEDUCATION

WWW.ILLEC.ORG

www.iasbo.org | 9

leadership is Key

As you read this edition of Update you will quickly notice that the theme of this issue is around the vital role of budgeting. It is so critical that the school business professional be a leader in the development and articulation of school district budgets. While an annual budget is essentially the culmination of many months of collaborative work with school leaders, board members, community members and the like, there is much more to budgeting and considerably more to being a leader in the budgeting process.

These two terms – “budgeting” and “leadership” – go hand it hand and Illinois ASBO is committed to increasing your capacity in both. Through seminars, regional meetings and publications such as this, Illinois ASBO brings members the best practices regarding school district budget development and communication. In the area of leadership, Illinois ASBO is committed to creating opportunities for members to grow and develop. These have included administrator academies and networking luncheons focused on leadership concepts. This year, we are very excited to take that to a whole new level with the Illinois ASBO Leadership Institute.

By the time you read this issue of Update, the 2010 Illinois ASBO Leadership Institute is well under way and we are accepting applications for 2011. In October we completed the two-day emersion with our first full cohort and in November the cohort returned for the single day administrator academy as a pre-conference session to the Joint Conference in Chicago. They will meet again in March to review their

strategies and impact and then pass the baton to the 2011 cohort at our annual conference in May.

But why a leadership institute? Why focus on this for school business professionals and service associate members? In short, the answer is simple. In nearly every district or company there is a need for effective leadership. Too many times I see stagnation in the executive ranks that is devastating to organizations. Also, over the last several years the economy and school funding needs have collided and we see more pressure put on school business administrators and superintendents to make things happen with less resources. We see more board members (nearly double the usual number) choosing not to run for re-election. All of this tells us that high quality leadership is critical and essential in order to successfully walk the minefield of public outcry over taxation that echoes along side constant demands for results.

This gives us great motivation to develop the next generation of leaders and to do that in a way that trains them to be effective and also opens doors for greater responsibility and successful leadership throughout their career.

The Illinois ASBO Leadership Institute is designed to meet this need among our members and is the fruit of nearly three

FrOm-TH E- OFFIC E

Michael a. JacobyExECUTIVE DIRECTORILLINOIS ASBO

See oFFIcE page 17

PErsPEcTIVE / Executive Director

more leadership: A Path-to-Success starts with taking a look in the mirror.

Page 14

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FrOm-TH E-FIE lD

Proper Plan = Positive results

Current economic times are affecting all school districts in some fashion. Shrinking budgets, higher operating expenses and a collective effort to be sustainable have district officials asking themselves “How do we survive?”

The simple answer is proper planning, both immediate and long term.

Through this turbulence, a district’s priority must remain what it has always been — quality education for its students. All decisions ultimately affect student education, and a proper plan helps districts stay on track.

Now is the perfect time to plan for the future and position your district for success. Think through the process … thoroughly. Examine all options and reach out to experts for advice. Engage proven educational planners, architects and engineers, financial planners and other trusted resources that are experienced with helping districts stretch dollars. These professionals are dubbed experts for a reason — listen to them.

a comprehensive plan studies the big picture

of your district and helps you to:

Determine specific facility needs;•Identify potential facility and •configuration options;Develop long-term facility plans •that meet the needs of your students, staff and community;Develop a plan that responds to •potential enrollment growth; andProvides information on ultimate capacities •and life expectancies of your facilities.

assess your FacilitiesA facility assessment allows you to closely examine all facilities, which will help as you make decisions about your district’s future. Begin by asking these questions:

Are there opportunities to consolidate •facilities to lessen operating costs? Do our facilities receive proper •maintenance each year? What steps can we take to enhance •our operating efficiencies?

Next, create a step-by-step plan that addresses any areas for improvement identified in the assessment. Through this effort, you have a better chance of making decisions that save money and use resources wisely, versus making poor decisions that could cost you money in the long term.

your plan also should include financing options. Tap into a variety of resources, such as state and federal programs that can help fund improvements. Remain in contact with your state educational funding sources to learn about stimulus and other funds available in Illinois.

reduce costsFacility directors can offer ideas to reduce maintenance and operations costs, which could allow you to redirect dollars from operations to academics. Small changes can add up in big ways.

By reducing unnecessary energy consumption, your district can add to its bottom line and lessen its impact on the environment. A few no-cost changes that add up to significant savings include turning off lights and computers when not in use, closing doors when the heating or cooling

Dennis E. BanePRINCIPAL DLR GROUP

See FIElD page 17

PErsPEcTIVE / SAAC Member


DEcEMBEr

dec 03, 2010 – 8:00 aM Educational Support Professionals Conferencedec 10, 2010 – 9:00 aM Debt Management Best Practices; BAB’s & DSEB Changesdec 14, 2010 – 8:30 aM Environmental Health and Safety

JaNUary

Jan 13, 2011 – 9:00 aM Introduction to School Finance - Support StaffJan 17, 2011 – 9:00 aM Understanding your 403(b) Plan FeesJan 19, 2011 – 8:30 aM Facility PurchasingJan 25, 2011 – 9:00 aM ISDLAF+ User Group Seminar Jan 26, 2011 – 9:00 aM ISDLAF+ User Group Seminar Jan 27, 2011 – 9:00 aM ISDLAF+ User Group Seminar Jan 28, 2011 – 10:00 aM ‘Energize’ Operational Cost Savings

For full seminar listings including location and PDC sponsorship, check the current calendar of Events that was included with UPDATE or visit www.iasbo.org and register for professional development today.

COm ING wINTE r SE m INArS

Illinois association of school Business officialsNorthern Illinois University, IA-103108 Carroll AvenueDeKalb, IL 60115-2829815.753.1276 / F:815.753.9367 / www.iasbo.org

Editorial staffJohnathon t. strube, Designer815.753.7654, [email protected] sean p. o’connor, Marketing Director815.753.9393, [email protected] lehman, Communications Coordinator815.753.9371, [email protected]

Board officersgarrick c. grizaffi, President Richard a. lesniak, President-ElectMark e. staehlin, Treasurerdarrell J. Moon, Immediate Past President

2008-11 board directors

John A. Gibson, Stacey L. Mallek, Hillarie J. Siena

2009-12 board directors

Dennis Burnett, Nelson W. Gray, Raymond P. Negrete2010-13 board directors

Susan L. Harkin, Beth L. Millard, Curtis J. Saindon

Board liaisonsFenil patel, Service AssociateAdvisory Committee Chairpersondwain a. lutzow, aIa, Service AssociateAdvisory Committee Vice Chairterrie s. simmons, ASBO International Liaison

gil Morrison, Regional Office of Education Liaison debby I. vespa, ISBE Board Liaison dean M. langdon, IASB Board Liaison

headquarters staffMichael a. Jacoby, Executive Directorsusan p. bertrand, Assistant Executive Director for Education & Professional DevelopmentJulie a. Warner, Administration Director HRclaudia a. bank, BookkeeperJudy a. sharp, Mail Services Managerangie lehman, Communications CoordinatorRebecca a. leneau, Meetings Coordinatorsandra l. duda, Professional Development Secretaryholly Wallace, Member Relations Specialistsean p. o’connor, Marketing DirectorJohnathon t. strube, Graphic Designer Inicole lee, Member Relations Associate

support staffemmert p. dannenberg, Statewide Liquid Asset Fund Marketing DirectorRonald e. everett, p-Card Marketing Directorcalvin c. Jackson, Legislative Liaison / Professional Development ConsultantRonald c. steigerwald, Statewide Illinois Energy Consortium Marketing Director

Privacy Policy All materials contained within this publication are protected by United States copyright law and may not be reproduced, distributed, displayed or published without the prior written permission of the Illinois Association of School Business Officials. you may not alter or remove any trademark, copyright or other notice from copies of the content.

References, authorship or information provided by parties other than that which is owned by the Illinois Association of School Business Officials are offered as a service to readers. The editorial staff of the Illinois Association of School Business Officials was not involved in their production and is not responsible for their content.

MAGAzINE

THE

March

Mar 04, 2011 – 10:00 aM Optimizing IT SupportMar 15, 2011 – 8:30 aM Maintenance OperationsMar 15, 2011 – 9:00 aM ISDLAF+ User Group Seminar Mar 16, 2011 – 9:00 aM ISDLAF+ User Group Seminar Mar 17, 2011 – 9:00 aM ISDLAF+ User Group Seminar Mar 22, 2011 – 8:30 aM Energy Saving, Sustainability, LEEDMar 28, 2011 – 9:00 aM The Use of Student Growth Measures in Teacher Evaluations and/or Race to the Top Grants

FEBrUary

Feb 04, 2011 – 10:00 aM Human Resources MetricsFeb 11, 2011 – 8:00 aM Seminar on School Finance - AAC #1062Feb 14, 2011 – 9:00 aM The Warehouse Behind your WarehouseFeb 16, 2011 – 8:30 aM Grounds Care, Planning and Playgrounds

www.iasbo.org | 13

CONTrIBUTOrS

henry “hank” Boerassociate Professor, aurora Univ.

Retired Illinois administrator employed as full-time professor. He teaches School Finance in the Educational Leadership M.A. program. He has served as Interim Supt. for districts after retirement. He has published on Illinois public school district finance. [email protected]

Bridget McGuiggancomm. rel. coord., orland sD 135 Has worked in school public relations for six years, first with her alma mater Queen of Peace High School in Burbank, IL, and now for Orland School District 135. She serves as President-Elect for the Illinois Chapter of National School Public Relations Association. [email protected]

howard crousePMa Financial Network, Inc. PMA's Vice President for Financial Planning Services focused on support and marketing of their Financial Planning Program, providing financial projections for school districts and special ed coops. He retired as Supt. from Indian Prairie School District 204. [email protected]

Michael J. PromboDir. / operations, cUsD 300 Oversees construction, HVAC, maintenance, energy conservation, facility usage and enrollment projections, community liaison, contract/legal document reviews and risk management. Has completed over $190 million in construction projects. [email protected]

richard J. Dombrowskiadjunct Professor, aurora Univ. Served as financial consultant for Des Plaines SD and was Interim Supt. at Union SD 81. Serves as treasurer and financial consultant to Union SD 81 and Fairmont SD 89. Served as adjunct professor of School Finance at Aurora Univ. and Univ. of St. Francis. [email protected]

John T. reinicheasst. supt. / Bus., orland sD 135 Has led his school district in the achievement of several financial awards, including Certificates of Excellence in Financial Reporting from Association of School Business Officials and Government Finance Officers Association. [email protected]


Take a look in the Mirror: leadership starts with you

Remember the evil witch in Snow White and the Seven Dwarfs? “Mirror, mirror on the wall who is the fairest of us all?” Wouldn’t it be nice to have our own mirror; one that tells us how we are doing professionally? How are we managing? How are we communicating? How are we leading? 360º feedback gets close to that talking mirror; offering insight into how others perceive you and in helping to identify gaps between your perception of yourself versus others’ perceptions of you. Members of the 2010 Leadership Institute Cohort received three hundred and sixty degree feedback and were led through an understanding of how to utilize that feedback for positive personal growth. This immersion program helps participants identify that the intent behind behavior does not necessarily deliver the desired impact. Participants are taught to give objective feedback to others through a technique called Situation, Behavior, Impact — SBI. Good leaders need to know how others see them and they need to help develop others through good feedback techniques.

Strong leadership in school business management is more critical now than ever. Magic mirrors exist in fairy tales, not in the school administration office. you can seek the benefits of a talking mirror through feedback if you ask for it and you can dole out the benefits to others if you practice giving feedback. The Illinois ASBO Leadership Institute offers members an opportunity to seek 360º feedback and teaches the skills to do something with it — to grow their leadership skills accordingly. Consider applying to the 2011 cohort and start your journey today.

pATH-TO- SUCCESS

PErsPEcTIVE / Illinois ASBO Leadership Institute

becky allard

david bein

susan caddy

alicia geddis

susan harkin

Jennifer hermes

anton Inglese

cathy Johnson

sherry koerner

John lavelle

crystal leRoy

patrick Mcdermott

Justin Miller

Ilsa Richardella

lyndl schuster

kenneth schwengel

yvonne taylor

cheryl Wadsworth

Interested in the Illinois asBo leadership Institute? Request a full pamphlet detailing the Leadership Institute by completing a simple online form at: www.iasbo.org/leadership

From the SourceThe following professionals

participated in the inaguaral cohort. Ask them about their experience and find out how you, too, could benefit

from 360º feedback.

Not Enough? Want to ask the leaders themselves? Contact Mike Jacoby at [email protected] or Susan Bertrand

at [email protected] about this unique and exciting opportunity.

www.iasbo.org | 15

SUppOrTING rOlE

recognizing the Best in school Business Management Illinois ASBO is committed to developing public awareness and appreciation of school business leaders and the value they add to the daily operations of schools.

career Propulsion awardsThe Illinois ASBO Foundation supports the advancement of careers in school business through scholarships and awards. Grants from various regional organizations, corporations and individuals offer financial assistance to students pursuing advanced degrees in school business management.

applications are now being accepted for the following scholarships:

Illinois ASBO School Business •Management ScholarshipSouthwest (SWASBO) •Regional Organization ScholarshipSouth Suburban (SSSBO) •Regional Organization ScholarshipFox Valley Regional School •Business Management ScholarshipDr. Craig Schilling Annual •Conference Scholarship

career longevity awardsThe Illinois ASBO Foundation continues to recognize school business officials who, throughout their career and lifetime, have demonstrated excellence in service to their school district, communities and profession. These awards are a celebration of the best school business management has to offer.

applications and nominations are now being accepted for the following awards:

Ronald E. Everett •Distinguished Service AwardMonarch Award•Lighthouse Award•

PErsPEcTIVE / Illinois ASBO Foundation

Scholarship and Award Applications are accepted through December 15

Scholarship and award recipients will be recognized at the Annual Foundation Recognition Banquet

on Thursday evening, May 19. This Illinois ASBO event is part of the 60th Annual Conference and

Exhibitions held May 18-20, 2011 at Pheasant Run Resort in

St. Charles. Be sure not to miss it.

Make a commitment of appreciation for school business

leaders and obtain an award application, find specific criteria or simply find more information on the Illinois ASBO website at:

www.iasbo.org/scholarships

Interested in giving to the Illinois asBo Foundation? Awards and recognition are not possible without member generosity. Show support today at: www.iasbo.org/foundation

Picking the Best

above: 2010 Illinois asBo Monarch award Winner rich Pagliaro (left) and

Executive Director Michael Jacoby.


your solution is coming.

www.iasbo.org | 17

years of planning and development within the association. The germination of the idea goes back even further. Nearly seven years ago, when I was still serving as the Superintendent of Schools in Geneva, the seeds were planted for this institute. It is a great story and one that should be encouraging to each of you who work with boards of education. One

board member in Geneva promoted the development of a leadership development grant through his company and we were able to plant $25,000 of seed money into a program to serve about 25 members of the Administrative Council. Over several years, we developed the focus of the efforts there and now those have been transplanted and expanded into the Illinois ASBO Institute. So, the experience that this first cohort had in October and November was born out of a real leadership scenario and is much less theory than practice.

you will want to seriously consider being a part of the 2011 cohort. We only have a limited number of spots available, as we limit the enrollment to 20 participants. If you are a Service Associate member, be aware that we reserve four positions for our Service Associate members and one is fully funded through the Wayne Berzon Memorial Scholarship. Wayne was a past chair of the Service Associate Advisory Committee and passed away unexpectedly last year. This is a great opportunity to apply and be a part of his legacy of leadership with the Association.

So leadership is the key. In my opinion, there is a vacuum of good leadership in schools. But I believe Illinois ASBO members can fill that void and doing so, they can increase the value of the profession in the eyes of community and state-wide leaders. So, ask yourself whether or not you want to grow in your impact as a leader. We can help through the Illinois ASBO Leadership

Institute. Over the next several years you will be introduced to these graduates at the Annual Conference and I am confident that you will see them emerge as the new leaders in our schools and associations. We would love to have you stand along side them in the years to come.

If you are interested, please contact Sandi Duda at [email protected] for an application packet.

system is on, and adjusting thermostats one or two degrees. Adopting a basic rule of thumb “if it is not needed, turn it off or turn it down,” could save you millions over the course of several years.

Prepare for the FutureStudent education is an investment. Maintain the long-term integrity of your assets, such as school facilities and educational equipment, by following the proper plan outlined above. This will allow you to maximize every dollar you spend and ultimately create a stimulating learning environment for your students.

professional development ideas that support Illinois ASBO in remaining the premier and indispensable professional organization both locally and nationally.

I challenge each member to reach out to those that may not know Illinois ASBO and who could benefit from becoming a member — ask him or her to become involved. Remember back to when you started in this profession. Where would you be if Illinois ASBO never existed? And most importantly, be proud of your affiliation with this association — I am.

PoDIUM from page 7

oFFIcE from page 9

FIElD from page 11

I challenge each member to reach out to those that may not know Illinois ASBO and who could benefit from becoming a member.

PErsPEcTIVE / Continued

There is a vacuum of good leadership in schools ... Illinois ASBO members can fill that void and increase the value of the profession ...


With an ongoing

budget schedule,it is important to

outline the future

thinkingahead?

are you

www.iasbo.org | 19

arTIclE / PoINT of VIEW Insight into the Issue

This fiscal year is nearly half over; the State still owes half of your categorical payments from last year. you have to levy based on an educated guess about how the housing market may affect your EAV. The economic environment is bleak, and the future uncertain.

It’s time to start the budgeting process again. We’d like to provide some thoughts, suggestions and insights for both next year’s budget and the foreseeable future. We must acknowledge that the economics of Illinois make it difficult to apply generalizations across the State. We have tried to capture the larger trends, but you must determine how your district is affected by them.

Publish a Budget calendarAs the end of the second quarter of the fiscal year gets closer, there are some critical steps you can begin now that will save time later in the process. Start by preparing a budget calendar, with both internal and external dates, tasks and persons responsible for each.

There are several legal deadlines to build into the calendar first. The last two dates on the budget calendar are the board meeting at which the board is expected to approve your final budget, and the board meeting at least 30 days before you will present the tentative budget to be put on display. you may want to include the date the notice of the public hearing for the budget must go to your local paper to meet the public notice requirements.

The second set of dates is determined by State statute (or your collective bargaining agreements if they are more restrictive). Whether you think you may have to reduce staff or not, you should determine the date by which you must give employees in each group notice of either reduction in force or non-renewal, and have it validated by your attorney. Then identify when the board meeting date before those deadlines is that represents the last opportunity for the board to take formal action.

The personnel-related dates include completion of evaluations, identification of non-renewal candidates,

and updating of the seniority lists as outlined in your CBAs and should be published to all supervisory staff. you do not want to lose options to an oversight.

Fill in your budget calendar with dates for others to provide you with information. Provide your administrators with enrollment projections, staffing allotments, per capita discretionary spending amounts or whatever other information they need to meet your target dates. Keep everyone informed and involved so that when changes need to be made as information becomes clearer, they can be part of the solution.

Mid-year Budget reviewIt is strongly recommend monthly or quarterly reviews of budget to actuals, comparing current year to last year for context. At the very least, December 31 numbers give a six-month check. Using a report from your financial software that includes budget, actual receipts and expenditures (including encumbrances) and the percentages of each is a great tool. If it can include last year’s information at a comparable time of the year, your task will be easier. This year-over-year comparison helps identify the cash flow trends, especially of expenditures.By this time in the year, your payrolls should have settled into a pattern. you should have an updated salary scattergram for all certified staff, and may have one for your classified staff if the numbers warrant. If lane changes have not yet been

howard crouse VICE PRESIDENT PMA FINANCIAL NETWORK, INC.

thinking


It is much easier

to predict andpotentially control

expenditures than revenues

processed, you will want to quantify those costs and update the scattergram again after that event. you can start by dividing scattergram cost by the number of payrolls and compare that to the payroll runs for certified staff. you will want to separate the costs of subs, stipends and lane changes from your contracted amounts.

Drill down further to increase both understanding of your payroll and the accuracy of forecasts. One important audit is to identify the number of people on staff and compare that to the number of checks issued in a selected number of payrolls. you also will want to confirm that the amount paid out is correct. Then you can forecast your costs through the remainder of the year.

Forecasting Next year’s BudgetThe perspective on Fy12 revenue is bleak. We might as well state that up front. In our opinion at the time of submission, there were no real glimmers of hope that new revenues would help fill the State’s treasury, and no apparent way for the State to make both late Fy10 and all budgeted Fy11 payments to districts within the current fiscal year. It seems likely that we will fall further behind. The State’s commitment to make timely GSA payments is welcome news, and we take that at face value. However, the outlook for Fy12 GSA has to be very cautious. We must admit to being skeptical that the federal government will continue to send large grants to supplement the State’s education spending.

We see indications that EAV is flat to falling in many urban and suburban areas, but farm land assessments may help in areas where that is a significant component. New construction has languished in most areas as the national economy has not begun a full-fledged recovery. For tax-capped counties, current CPI trends are towards a lower than average CPI to impact Levy year 2011 extensions.

Therefore, most districts are taking a very careful review of Fy11 in preparation for what may be an even worse Fy12. The more dependent you are on the State for revenue, the more susceptible you are to significant budget reductions because your revenues are so highly unpredictable.

It is much easier to predict, and potentially control, expenditures than revenues. We believe this is where the crux of Fy12 budgeting will be.

Beginning with the salary information gathered above, you can estimate salary expenses based on next year’s contracts and schedules. If you do not have a contract or are hoping to re-open an existing one, you will want to collect data about other districts to present to your Board for discussion. Most Boards are taking a very cautious approach to contract settlements, reflecting the common belief (if not the reality) that general economic conditions and private sector reactions demand minimal new dollars for teachers and staff. you will want to discuss health care premiums early and often with your insurance broker. We

www.iasbo.org | 21

anticipate that most will hesitate to be pinned down because the impact of federal health care legislation is still unknown. Estimates now will be high, but hopefully stabilizing lower as you get closer to the next renewal date.

Custodial and transportation costs seem to be holding steady or increasing at very low rates. Utility prices seem to have moderated, but still leave us in reactive mode. Gasoline prices seem to be reluctantly steady, waiting for the first opportunity to bite back. This is probably one line item you will want to project higher than average cost increases.

After salaries, benefits, transportation and utilities, most districts have reduced “discretionary” spending over the last two years to seemingly bare bones levels. yet, we must continue to review those discretionary expenditures first for possible reduction.

Many districts are already postponing big-ticket expenditures to avoid personnel reductions as long as possible. Textbook adoptions, technology improvements, back office software updates and capital projects may be delayed, only to be delayed again. In the same vein as salary freezes or rollbacks, these also have short-term costs and long-term implications. One prominent labor attorney in our area summarizes these dilemmas with a simple question, “What is your exit strategy?”

long–term ForecastingThe State will not extricate itself from its finance problem in one year, and maybe not in two. We hope, but do not expect, the political tension among the legislative leaders, the governor, and various interest groups will lead to a tenable course of action. We probably will not like it. It will likely result in fewer dollars from the State, although perhaps not in GSA. It will likely cost both districts and their employees more money. your fiscal policies will be questioned more than ever. We can only hope that the national and local economies will bounce back sooner rather than later.

your best course of action is to understand how the mixed bag of variables may impact your district, while accepting the fact that you have little or no control over many of them. This should not discourage you from making projections. Making small changes now could have significant compounding implications down the road, both positive and negative.

your financial projections must be flexible enough to change as variables become fact, and powerful enough to quantify a range of options. More often than not, we see that range show up as “best-case, worst case, most likely” paths. Create a base projection, keeping it up to date as new information becomes available and run scenarios as desired.

For more information, contact Howard Crouse, Vice President, PMA Financial Network, Inc. He can be reached at [email protected] or 630.657.6400 x6415 Howie has been a member of Illinois ASBO since 2008 and has presented at many ISDLAF seminars on school finance.

Making small changes

now could have significant

compounding implications

down the road, both

positive and negative.

PMA Financial Network, Inc. PMA Securities, Inc. and Prudent Man Advisors, Inc. are under common ownership. PMA Securities is a broker-dealer and municipal adviser registered with the Securities and Exchange Commission (SEC) and Municipal Securities Rulemaking Board and is a member of Financial Industry Regulatory Authority. Prudent Man Advisors, Inc. is an investment adviser registered with the SEC.

This article was prepared for informational and/or educational purposes only without regard to any particular user’s investment objectives, financial situation or means. The content of this document is not to be construed as a recommendation, solicitation or offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy in any jurisdiction in which such an offer or solicitation, or trading strategy would be illegal. Nor does it constitute any

legal, tax, accounting or investment advice. Although the information contained in this article has been obtained from third-party sources believed to be reliable, PMA Financial Network, Inc. cannot guarantee the accuracy or completeness of such information. It is understood that PMA is not responsible for any errors or omissions in the content in this document and the information is being provided to you on an “as is” basis without warranties or representations of any kind.

Disclaimer

arTIclE / PoINT of VIEW Insight into the Issue


EQUATIONthe right

Connecting Budgetary Decisions to Student Success is the Formula for Community Support

www.iasbo.org | 23

arTIclE

When talking school district finances, the answers to those two basic

questions are not always easy to explain, especially in Illinois. Politics,

poor communication practices, and misinformation are rampant in

communities throughout the State, making the job of school business

officials and communication officers more challenging than ever before.

It is with this concern in mind that in Orland School District 135 of Orland

Park, we improved the way we talk to the community.

EQUATION“Where does the money come from, and how is it spent?”

Knowing how to communicate a district's financial goals can ensure that communities can answer :

John t. Reiniche ASSISTANT SUPERINTENDANT / BUSINESS ORLAND SD 135

bridget Mcguiggan COMMUNITy RELATIONS COORDINATOR ORLAND SD 135


I have worked in school finances since 1997, first as an auditor and later as the school business

official on the other side of the desk. I currently serve as Assistant Superintendent for Business Services. Over the last six years, there has been an increasing demand from the public to hear about education funding. Community members are taking a renewed interest in their school districts. It is important to be informed and involved; the finances of a school district affect every citizen in the community. The only trouble I see – school finance is complex and many of the real complexities are never explained to the public.

I want our community to know that each year,

instruction is always the main focus. Everything we work

for in District 135 is based on the common understanding

that what we do, we do for the success of our students.

Explain the complexities

In my first year with District 135, I created Budget

at a Glance to help everyday citizens better

understand the money matters of the District, and

the publication has continued to evolve each year.

Budget at a Glance is the district’s best effort at

making finances easier to grasp. With pie charts

and bar graphs, we are able to share a surprisingly

large amount of information in just a few pages,

ranging from revenue sources (Fig. 1) and property

tax breakdowns (Fig. 2) to expenditures by object

and fund (Fig. 3) and state funding shortfalls.

The latter pages of the 20-page document

are dedicated to making a connection between

the finances and education. I include current

curriculum initiatives, standardized test results,

enrollment projections, and what we call points

of pride (see right) highlights of district-wide

achievements. My favorite chart is called

“Instruction takes top priority.” (see page 27)

I re-group all of our funding into five categories:

Instruction, Operations, Other Commitments,

Instructional Support and Leadership.

www.iasbo.org | 25

Showing Success

highlights from orland Park District 135 Points of Pride

District 135 received the Certificate of Excellence in Financial

reporting for its Comprehensive Annual Financial Report from

two independent organizations; Government Finance Officers

Association and Association for School Business Officials. With over 870 school districts in the State of

Illinois, only 12 school districts have received such recognition.

For the fourth consecutive year in a row, The Illinois State Board of

Education’s School District Financial Profiling System has placed Orland School District 135 in the “Financial Recognition” category. This is the

highest category obtainable for the School District Financial Profile.

Liberty School was chosen as a finalist

in the “Green My School” contest sponsored by EcoMedia and ABC7

News. Students and staff worked together to demonstrate ways the school

has become more environmentally friendly, and outlined future plans to

increase “green” efforts.

District 135 junior high students earned top honors in Southwest Interscholastic

Conference math, declamation and athletic competitions.

Six District 135 schools were recipients of the Illinois State Board of Education “Award of Excellence” for continued

outstanding performance on the Ilinois Standards Achievement Test.

The 2008-09 Budget at a Glance

publication won an Award of Excellence in the Illinois Chapter

of the National School Public Relations Association

Communications Contest in the Financial Information category.

arTIclE / The Right Equation

Fig. 1 / District 135 revenue sources District 135’s primary source of revenue is from property taxes. A little less than 75 percent of the District’s overall revenue is generated from this source.

Fig. 2 / Property Tax Breakdowns The Equalized Assessed Valuation for the district has a good mix of property. Residential Property Tax is the largest percentage, followed by Commercial Property Tax.

Fig. 3 / Expenditures by Fund and objectThe District 135 budget is broken into eight categories, which are called funds. Each fund is established for a specific purpose or function. Schools can expend only the money available in each fund. Unless prescribed by law, money received in one fund cannot be used for expenses in another fund. The Education Fund is the District’s largest fund. It contains 70 percent of all expenditures, which equates to approximately $59,000,000.

When expenditures are considered by type, rather than fund, they are called objects. The largest object expenditure is salaries, which contains 50 percent of all expenditures, or in dollars, approximately $42,000,000.

66.71% – Residential

27.18% – commercial

6.06% – Industrial

0.03% – Farm

0.02% – Railroad

74% – property tax

05% – transfers

05% – on behalf

03% – Federal programs

07% – state programs

02% – gsa

04% – other local

70% – education

00% – life safety

03% – Working cash

02% – capital projections

02% – IMRF

07% – transportation

09% – debt service

07% – operations & Maintenance

50% – salaries

17% – benefits

00% – termination benefits

05% – bond payments & transfers

02% – non-capital equipment

10% – dues, Fees, tuition

02% – capital outlay

05% – supplies

09% – purchased services

Breaking Down the revenue and Expenses


Take a look at the Whole report the budget at a glance publication is available in each of the district’s

ten buildings and is published on the district website, www.orland135.org.

the website is home to a variety of other critical finance-related pieces.

In addition to the multitude of print and web-

based information made available, we provide

an opportunity for community members to

discuss concerns and questions in person

with the Superintendent. “In the Round” is held

twice per year at the District Administration

Center and welcomes all residents to hear the

Superintendent’s updates on a variety of topics,

and affords citizens an opportunity to ask

questions on any topic of their choosing.

I believe effective communication is a critical

component in the job of a school business official.

Managing the money well is not enough when

you work for a public body. The community

needs to know that their school district is

transparent and timely in sharing financial

information. If the first time your residents

hear from you is when you’re hoping to pass

a referendum, you have missed countless

opportunities to build a mutual and lasting

relationship. Taxpayers are not just taxpayers;

they are shareholders with a stake in the

success of everything you do.

The Budget at a Glance publication is available in each of the district’s ten buildings and is published on

the district website, www.orland135.org. The website is home to a variety of other critical finance-related

pieces. I work with our Community Relations Coordinator, Bridget McGuiggan in keeping a “Financial Reports”

page updated with the most current publications. This section, which is easily accessed from the homepage,

is home to auditing statements, the newly required Administration Compensation Report, and the district’s

second financial publication “Shareholders’ Report,” which is mailed to more than 35,000 homes and

businesses each July. The “Shareholders’ Report” is a review of the year’s finances and a preview of

the financial picture for the upcoming school year. It is combined with District news and highlights

and is really well-received by our community.

I believe effective communication is a critical component in the job of a school business official.

www.iasbo.org | 27

arTIclE / The Right Equation

For more information contact John T. Reiniche, Asst. Supt./Business at Orland SD 135 at [email protected] or 708.364.3312 OR Bridget McGuiggan, Community Relations Coordinator, Orland SD 135.John has been an Illinois ASBO member since 1998 and a member of the Budgeting & Financial Planning PDC.

Orland School District 135 includes the chart “Instruction Takes Top Priority” in the Budget at a Glance booklet. For this chart, the entire budget is organized into five categories that summarize how money is spent. As the chart illustrates, over 60 percent of the district’s budget is spent in the classroom on instruction and instructional support. It is important to note, though, that in other categories, such as Operations, there are significant expenditures that directly support instruction, like transportation, food service and custodial services.

Instruction Takes Top Priority

All the numbers shown on the previous pages, the revenues and expenditures, do not mean much without the relationship to student achievement. Every budget decision we make is tied to educational outcomes, to making our district more effective in our mission to help students prepare for the future.

so what do all the numbers mean? Money well spent.

$20,000,000

2006-07 2007-08 2008-09 2009-10

$40,000,000

Instruction

operations

leadership

other commitments

Instructional support

$10,000,000 $30,000,000


Knowing

to lookWhere

Understanding Equalized Assessed Valuation could help turn up budget funds in an unlikely place

www.iasbo.org | 29

An abatement of $144,500 from the Capital Projects Fund to the Debt Service Fund would result in no increase in property tax bills throughout the school district. However, after a careful examination of EAV classifications, it was observed that residential EAV for 2009 experienced a slight decrease of .05 percent in EAV from the previous year, 2008. Also, it was observed that the commercial/industrial classifications of EAV increased by more than seven percent from 2008 to 2009. School district officials re-thought their initial idea of abating $144,450 from the Capital Projects Fund to the Debt Service Fund.

A mere $7,350 abatement from the Capital Projects Fund would result in essentially no increase in residential classification property tax bills because the commercial/industrial classifications EAV increased by more than seven percent. Therefore, commercial/industrial EAV would pay a greater portion of the Debt Service Fund obligation which would result in a reduction of property tax responsibility for residential property owners. Data on residential EAV was based upon an analysis of individual parcels of property location in a residential sub-division that encompasses the majority of residential EAV located in the school district. This observation points out that it is generally a good idea to monitor percentage changes in property tax classifications.

Also, a careful review of property tax EAV exemptions for residential parcels will assist in understanding the reasons why the residential property EAV classification reduced from 2008 to 2009.

Several of these property tax exemptions have a tendency to expand taxpayer eligibility and, in several situations, to expand the exemption dollar amount on an annual basis such as General Homestead Exemption and Senior Citizens’ Homestead Exemption.

Property Tax Appeal Board decisions also generally result in reductions in EAV for selected parcels. A common rationale for requests in parcel EAV reductions is based upon the observation that the current Fair Cash Value is

arTIclE dr. henry boer ASSOCIATE PROFESSOR AURORA UNIVERSITy

dr. Richard J. dombrowski ADJUNCT PROFESSOR AURORA UNIVERSITy

A great deal of insight can be gained by carefully analyzing each classification of Equalized Assessed Valuation in a school district’s total taxable EAV. The following scenario, which is based upon an actual Illinois school district, will yield several interesting points for administrators and boards of education to ponder.

A school district’s Debt Service Fund property tax rate was scheduled to increase by sixteen cents. School district officials were aware that the Capital Projects Fund balance was excessive. Some thought was given to abating a portion of the Capital Projects Fund balance and transfer this amount to the Debt Service Fund. An important factor in this scenario was the changes in the school district’s EAV. The inflationary increase in total EAV due to new “Brick and Mortar” for the school district was approximately seven percent.

The following list of assessment Exemptions will identify several options for residential taxpayers which all result in reduced EaV for a school district:

• General Homestead Exemption • Homestead Improvement Exemption • Disabled Persons’ Homestead Exemption (New) • Senior Citizens’ Homestead Exemption • Senior Citizens’ Assessment Freeze Exemption • Disabled Veterans’ (New) • Disabled Veterans’ Standard Homestead Exemption (New) • Veterans’ Organization Assessment Freeze • Returning Veterans’ Homestead Exemption (New)


lower than the amount identified on the property tax bill that is being questioned. And another variable in reducing EAV is that elected government assessors may also be reassessing parcels in a manner that results in a reduced EAV. Also, the Consumer Price Index has not lead to significant increases in EAV.

The most current CPI for 2009 factor is 0.1 percent of an increase. Of course, a major limiting factor to property tax extensions is the Property Tax Extension Limitation Law which controls the property tax extension to five percent increase or CPI which ever is less in school districts that are affected by PTELL

taX code FaRM-a FaRM-b ResIdentIal coMMeRIcal IndustRIalMIneRal RIghts

RaIlRoad

JolIet toWnshIp

3005 43.8% 0.3% -0.5% -0.1% 0.0% 0.0% 14.5%

3006 2.5% -6.1% 3.3% -1.6% 1.9% 0.0% 0.0%

3056 -0.3% 0.9% -1.1% 0.0% .0% 0.0% 0.0%

3057 -0.4% -1.9% * 10.4% 28.9% 1.8% 0.0% 0.0%

total 45.6% -6.9% 12.1% 27.2% 3.7% 0.0% 14.5%

neW lenoX toWnshIp

1501 1.1% 1.2% -0.5% -0.1% 48.9% 0.0% 14.5%

1502 5.0% 0.9% -0.7% 0.0% 0.0% 0.0% 14.5%

1526 0.0% 1.0% -0.7% 0.0% 0.0% 0.0% 0.0%

1534 0.0% ** -69.1% 0.0% 0.0% ** 99.2% 0.0% 0.0%

1560 0.0% 1.0% 0.0% 0.0% 38.2% 0.0% 0.0%

total 6.04% -65.01% -1.84% -0.09% 186.28% 0.00% 29.05%

* SKEWS DATA, ONLy ONE RESIDENCE IN TAx CODE.

** FARMLAND B ASSESSMENT DECREASE DUE TO CHANGE IN zONING TO INDUSTRIAL IN TAx CODE 1534

TaBlE IIPERCENT OF CHANGE IN EAV FROM TAx yEARS 2008–2009

eav2008

eav2009

2009neW pRopeRty

peRcent oF IncRease2009lIMItIngRate

total taX RateeXcludIngdebt seRvIce

debt seRvIceRate W/o abateMent

due toInFlatIon

neWpRopeRty

69,068,052 84,401,609 10,591,534 6.9% 15.3% 1.9711 1.9711 0.3549

TaBlE ICHANGE IN DISTRICT’S EQUALIzED ASSESSED VALUATION AND TAx RATE INFORMATION FOR TAx yEAR 2009

The following tables will demonstrate how selected abatements in the capital Projects Fund to the Debt

service Fund would affect property tax bills for

selected parcels.

table I – PROVIDES ESSENTIAL INFORMATION IN 2009 EAV

INCREASES AND DEBT SERVICE RATES.

table II – PROVIDES ACTUAL EAV PROPERTy CLASSIFICATION

CHANGES FROM 2008 TO 2009.

table III – ExPLAINS THE PROBLEMS ASSOCIATED WITH GENERALIzING ABOUT THE COMBINED TOTAL EAV.

IT WOULD REQUIRE AN ABATEMENT OF $144,450 TO REFLECT A zERO INCREASE IN PROPERTy TAxES FOR ALL PARCELS FOR THE TAx yEAR 2009 BECAUSE OF

THE 7 PERCENT SUBSTANTIAL INCREASE IN THE COMMERCIAL/INDUSTRIAL EAV CLASSIFICATION DUE TO INFLATION.

table Iv – DEMONSTRATES THE BENEFITS OF CAREFULLy ANALyzING EAV CLASSIFICATIONS BECAUSE THE RESIDENTIAL EAV CLASSIFICATION

REDUCED By .05 PERCENT AND THE COMMERCIAL/INDUSTRIAL

CLASSIFICATION INCREASED By SEVEN PERCENT. THE INCREASED COMMERCIAL/INDUSTRIAL CLASSIFICATION IS BEARING

AN INCREASED AMOUNT OF THE DEBT SERVICE FUND; THEREFORE, AN

ABATEMENT OF ONLy $7,350 WILL ALLOW PROPERTy TAxES ON SELECTED PARCELS

TO ESSENTIALLy REMAIN THE SAME.

www.iasbo.org | 31

Hank Boer of Streator is an associate professor at Aurora University and a former superintendent of schools. Hank has been a member of the association since 1993 and been a contributing author of the Journal of School Business Management. He can be reached at [email protected] or 815.673.1939. Richard J. Dombrowski of Plainfield is an adjunct professor at Aurora University and the University of St. Francis in Joliet and a former superintendent of schools. Rich has been an Illinois ASBO member since 1978 and a contributing author for the Journal of School Business Management. He can be reached at [email protected] or 815.726.5218.

arTIclE / Knowing Where to Look

pIn nuMbeR2008 neteav

2009 nete.a.v. assuMIng7% IncRease

2008actualtaXes

pRoJected2009 taXes

pRoJectedIncRease/(decRease)W/oabateMent

pRoJectedabateMentaMount toReFlect $0.00taX IncRease$144,450

15-08-29-201-001 $82,986.00 $88,795.02 $1,913.49 $2,065.37 $151.88 $1,913.49

15-08-29-201-002 $69,324.00 $74,176.68 $1,598.47 $1,725.35 $126.88 $1,598.47

15-08-29-201-003 $81,132.00 $86,811.24 $1,870.74 $2,019.23 $148.49 $1,870.74

15-08-29-201-004 $88,864.00 $95,084.48 $2,049.03 $2,211.67 $162.64 $2,049.03

30-07-24-203-009 $40,977.00 $43,845.39 $944.85 $1,019.84 $75.00 $944.85

30-07-24-203-008 $36,921.00 $39,505.47 $851.32 $918.90 $67.57 $851.32

30-07-24-203-007 $50,585.00 $54,125.95 $1,166.39 $1,258.97 $92.58 $1,166.39

30-07-25-306-004 $39,844.00 $42,633.08 $918.72 $991.65 $72.92 $918.72

30-07-25-306-005 $36,838.00 $39,416.66 $849.41 $916.83 $67.42 $849.41

30-07-25-306-006 $39,750.00 $42,532.50 $916.56 $989.31 $72.75 $916.56

TaBlE IIIAFFECT OF GENERALIzING EAV

pIn nuMbeR

2008 neteav

2009 neteav assuMIng.05% decReaseIn ResIdentIaleav

2008actualtaXes

pRoJected2009 taXes

pRoJectedIncRease/(decRease)W/oabateMent

pRoJectedabateMentaMount toReFlect $0.00taX IncRease$7,350

15-08-29-201-001 $82,986.00 $82,571.07 $1,913.49 $1,920.60 $7.19 $1,913.49

15-08-29-201-002 $69,324.00 $68,977.38 $1,598.47 $1,604.41 $6.01 $1,598.47

15-08-29-201-003 $81,132.00 $80,726.34 $1,870.74 $1,877.69 $ 7.03 $1,870.74

15-08-29-201-004 $88,864.00 $88,419.68 $2,049.03 $2,056.64 $7.70 $2,049.03

30-07-24-203-009 $40,977.00 $40,772.12 $944.85 $948.36 $3.55 $944.85

30-07-24-203-008 $36,921.00 $36,736.40 $851.32 $854.49 $3.20 $851.32

30-07-24-203-007 $50,585.00 $50,332.08 $1,166.39 $1,170.72 $4.39 $1,166.39

30-07-25-306-004 $39,844.00 $39,644.78 $918.72 $922.14 $3.45 $918.72

30-07-25-306-005 $36,838.00 $36,653.81 $849.41 $852.57 $3.19 $849.41

30-07-25-306-006 $39,750.00 $39,551.25 $916.56 $919.96 $3.45 $916.56

TaBlE IVAFFECT OF ANALyzING EAV

referencesUnion Elementary School District #81, Joliet, Illinois.

Voots, N. Will County Clerk, Tax Extension Services, Specific Current Tax Information. Retrieved from Will County Clerk’s website: http://www.thewillcountyclerk.com/connect/site/index.jsp?menuItemId=151

Novak, R. Will County Supervisor of Assessments. Will County Property Search, Retrieved from Will County Treasurer’s website: http://www.willcountysoa.com/search.aspx. (5/4/10).

Weber, J. Will County Treasurer’s Office Local Taxes for Local Services, retrieved from Will County Supervisor of Assessments’ Website: www.willcountytreasurer.com. View or Pay 2009 Taxes Payable in 2010. (5/4/10)


These are tough budgeting choices; but having a pattern

to follow can make these decisions black and white

cutsprogram

www.iasbo.org | 33

arTIclE

Where and when to start? how to get stakeholder involvement and buy-in? What information is needed to make an informed decision?and, most importantly, who decides on the budget cuts?

Fred Fox EDUCATIONAL PROGRAM REVIEW TECHNIQUE CONSULTANT

Knowing that budget cuts will anger staff, students and community members, there must be a logical and consistent process to explain the budget cuts, a process that clearly answers the question, “How much do you expect to save and how will the cut impact the district and students?”

What is needed is a systematic and continuous evaluation process that will create a viable list of budget options, whether it is a reduction in programs and services or, in good financial times, an addition in programs and services. For the past five years, District 300 has used the budget evaluation process called the Educational Program Review Technique, which is a process that allows a district to define the value of an educational program and operational program functions in relation to cost. The EPRT program provides the school board and administration with program evaluation centered on student achievement and the detailed financial information necessary to set educational and operational priorities.

A large number of districts, through no fault of their own, face the daunting task of cutting the budget in order to weather the financial storm coming out of the state capital. The budget cutting questions a district faces are many:

Michael J. prombo DIR. / OPERATIONS CUSD 300


Determine who will rank order programs. •

All individuals that rank meet •to discuss results.

Re-Rank if needed after discussion. •

The program activity level ranking •of all group members are totaled.

The program activity level having the •lowest accumulative rank is the program activity level of number one priority.

A running cumulative total is kept •to indicate the cost of each program activity level and the cumulative cost of all program activity levels.

EPrT: how It Works ... Ten step pattern for assessing and making program cuts

To ascertain the value of a given educational •program or operational function in relation to its cost.

To provide school board and administration members with •program evaluation and financial information necessary to set educational priorities and operational effectiveness.

define what the program is expected to accomplish, related to:

Student Achievement and/orOperational Expectations

Related directly to program outcomes. •

List data that will be gathered and reviewed to •document level of student and/or operational success.

8. Program cost

9. Decision Making

6. Program activities4. levels of EPrT

7. Program Evaluation

5. Expected outcomes

3. Elements of EPrT

1. Purpose of EPrT 2. Identification of Programs

programs to be evaluated and prioritized:Categorical programs•Electives•Programs most likely •to require changes

Proposed •new programsCore programs•Operations•

Programs are described and reviewed in •terms of their expected outcomes, activities, evaluation plan and cost.

The effectiveness of each program •is analyzed in terms of the degree to which program outcomes are realized.

Program planning is conducted in a •systematic manner by a committee chaired by an administrator.

Each EPRT Program Plan is presented •to the administrative team for review and refinement.

Program Plan provides for growth, •maintenance or reduction as a district’s needs dictate.

Program evaluation is focused toward •improving programs at defined levels of expenditure.

Process is adaptable to size of district, •manpower, and financial resources.

Written at three levels of expenditure:

level I – Approximately 10 percent reduction in current year’s program costlevel II – Current year’s program costlevel III – Approximately 10 percent increase in current year’s program cost each level has program outcomes, activities, evaluation and costs

Describe students •(or staff) being served.Give the duration of the service.•List number of full-time equivalent •staff members in the program.

In level I, show reduction of students / staff served with reduced funding.In level III, show expansion of students / staff served with increased funding.

Salaries•Fringe Benefits•Purchased Services•Supplies and Materials•

Capital outlay•Program Revenue•District Cost of Program•Number of Staff (FTE)•

Rank program activity level cost cumulative cost

1 Class Size I 30,000,000 30,000,000

2 Art Education I 600,000 30,600,000

3 School Adm. I 5,000,000 35,600,000

4 Class Size II 3,000,000 38,600,000

5 Art Education II 60,000 38,660,000

6 School Adm. II 500,000 39,160,000

7 Class Size III 3,000,000 42,160,000

8 Art Education III 60,000 42,220,000

9 School Adm. III 500,000 42,720,000 level I – Reduction / level II – No change from current / level III – Increase

cuRRent budget

www.iasbo.org | 35

2. Identification of Programs

Ultimately, EPRT allows a district to plan ahead for a range of budget scenarios and taxpayers demand that school districts be ready for any number of future budgeting scenarios. In District 300, this means having a well-informed budget plan in place that reflects the insights of staff, the wishes of the community, and foremost the needs of students. EPRT allows District 300 to meet its finance strategy to develop a financial plan to implement the initiatives and tactics in the strategic plan that ensures there are linkages between resource allocations, educational goals and priorities along with fiscal responsibility and transparent communication about the district’s finances. EPRT provides this comprehensive plan, ensuring that District leaders – both administrators and Board members – have determined in advance the impact on students and on daily operations of expanding, maintaining or reducing a particular program.

Under EPRT, programs in school curriculum and daily operations are described and reviewed in terms of their expected outcomes, activities and evaluation plans. Their effectiveness is analyzed by the degree to which data-specific goals are realized. The program’s evaluation is comprehensive and focused on improving programs at defined levels of expenditure. Historical data is gathered and updated every year so that trends and results are generated for every program and operational function. The process is adaptable to the size of the district, its manpower and available financial resources.

In identifying programs to be evaluated and prioritized, the District considers: Categorical programs, electives, programs most likely to require changes, proposed new programs, core programs and operational functions. The decision making begins with small groups of individuals

directly involved in each program. Building-level and Central Office administrators, lead each EPRT committee for each of the 30+ District programs that are evaluated. In meetings throughout the school year, the small groups present their findings to the entire administrator group for feedback and, ultimately, a group vote to rank the programs – and their proposed increases or decreases – by their priority in serving students and families. A running cumulative total is kept to indicate the cost of each program activity level and the cumulative cost of all program activity levels within the programs. Finally, the Board reacts to the rankings for determining an annual budget.

Each program level analysis contains the following sections: Expected outcomes; program; activities; program evaluation; and program costs. ExPECTED OUTCOMES describe student achievement, seeking to create congruency and ties between the formal and the “real” curriculum. PROGRAM ACTIVITIES describe how students are served, giving the duration of the service and listing the number of full-time staff members in the program. PROGRAM EVALUATIONS are driven by student achievement and are related directly to program outcomes, both the summative and the formative. PROGRAM COSTS include: salaries, fringe benefits, purchased services, supplies and materials and capital outlay.

District 300 has used ERPT to allocate funds to improve programs in times of positive budget balances and unfortunately reduce programs in the current state budget crisis. This has been done in a systematic, comprehensive way by determining program effectiveness through student achievement data for educational EPRT programs and operational effectiveness for operational functions. By building a broad base of support for budget decisions, EPRT reduces the real and/or perceived ‘smoke filled back room decision making’.

For additional information on the Educational Program Review Technique, contact Fred Fox, Fox Educational Program Evaluation Services at [email protected] Mike Prombo, Director of School Operations, at [email protected] Community Unit School District 300. Each EPRT Report for Community Unit School District 300 can be found at http://www.d300.org/

EPrT allows the budget for each program to be written at three levels of expenditure:level I - About 10 percent reduction in annual cost; level II - Similar to current annual cost; and level III - About 10 percent increase in annual cost.

arTIclE / Program Cuts

Clearly identify program reductions so people realize •what services are impacted and that the status quo cannot be maintained at this time.

Involves staff in identifying outcomes, activities •and evaluation instruments for program improvement.

Involves community members / parents in the process. •

Enhances Board, staff and public knowledge •of district/school programs.

Enhances program accountability through •a formal evaluation and shared results.

Reinforces the Board’s understanding •and sense of ownership of district programs.

Provides Board and Administration with a formal •procedure for making budget decisions.

10. The EPrT Process Will ...


Technology Department reviews 01.

any hardware or software donation.

Purchasing Department reviews 02.

donated classroom items such as desks, chairs, and supplies.

Curriculum Director reviews 03.

books, instructional software or other curriculum-related donations.

Central Office reviews supply 04.

donations such as binders, markers, paper, pens and pencils.

Buildings and grounds reviews 05.

landscaping, cleaning supplies and memorials and their placement, such as teacher retirement bricks.

Operations and Facilities Committee 06.

reviews building improvements, such as outdoor sheds, new PA system and soccer goals.

The donation dilemma that school administrators face is the district might not want or need the donation, but does not want to look ungrateful for turning the donation down without good reason. It is imperative that the school district insures that a donation (cash, item or volunteer time) is a good fit for the district and that conditions attached to the donation are acceptable. Accepting cash with little or no strings attached is a much easier decision than whether or not to accept a tangible item. So, focus on the donation item and the questions that should be considered before accepting.

It is important that all district employees know the donation process or else the district could find itself in a position of accepting something that will not be used or cost too much to install. Donations can be more trouble than they are worth, so you do not want to face the political fallout from a donor that finds their donation is now sitting in storage collecting dust or has been consigned to the dumpster. All donated equipment must meet district purchasing standards and be inspected before being accepted. Keep in mind that there is always a “hidden cost” in accepting donated items. Donations can serve as a drain on the district if the donated item does not meet minimum operating standards or is in poor condition and requires maintenance.

Gift or Gaff? CREATING A DONATION ACCEPTANCE STRATEGy

the following are examples of how that review process can be broken out.

Evaluations, questions and documentation are key to this simple three-step process

The poor economy is prompting the community

and generous individuals to volunteer to help wherever and

however they can. But, what do you do when you get a

call from someone that wants to donate a white elephant

item, such as a grand piano or obsolete technology?

Develop review

committees

the most important aspect of reviewing a donation is that the

appropriate district employee or committee evaluates the

donation by asking the right questions that will insure it is

an item the district can use.

www.iasbo.org | 37

For more information, contact Michael J. Prombo, Dir./Operations, CUSD 300 at [email protected] or 847.551.8394. He has been an Illinois ASBO member since 2006 and has presented an Annual Conference session in the past.

arTIclE

the following questions can be used to determine

whether to accept a donation. by thoroughly investigating

the donation upfront, then you are less likely to make a mistake

that the school district will pay for over and over again.

by no means are these all of the questions that need to be

asked, but they are a good start to insure that you make an

informed decision and end up with a donation that benefits

the school district.

Tangible Stand Alone Item Donation 01. form is used to identify the school, item description, donor, costs, revenues, completion date and contact person.

Site and Construction Donation 02. Form is used to insure all regulatory agencies are contacted and that the funding source, costs and other documentation has been provided.

Michael J. prombo DIR. / OPERATIONS CUSD 300

ask the right

questions

Double check

finDings

<< Find More online: Forms may be downloaded from the Illinois asBo website: www.iasbo.org/updatedonationstrategy

Does the donated item satisfy 01. a need within the district?

Is the equipment in good operating 02. condition? An item may incur disposal cost that could be expensive if this involves environmentally appropriate recycling or disposal.

If the item doesn’t satisfy a need 03. or meet standards and it is still accepted, do you have storage space or a way to dispose of it?

Are there safety or installation 04. standards that the item must meet? Playground equipment, etc.

If a bid is required, the donor gives 05. money to buy playground equipment, is everyone aware of the bidding requirements, codes and installation timeline?

Who will install the item? 06. The installer needs to be bonded and insured, and comply with any district contractor certifications, such as paying prevailing wage.

Will the item require 07. long-term maintenance?

Where is the source of funding that 08. will pay for the costs associated with either installing or maintaining the donated item?

If your staff is maintaining the item, 09. have you considered the increased work load for your staff?

Have you been able to inspect the 10. potential donation at the donor’s site before accepting, knowing the minimum cost of installation and assessing the long-term maintenance of the item?

If there is maintenance involved does 11. your staff have the expertise to service the item or do you have to use an outside vendor?

Is the hardware or software compatible 12. with current school district hardware or software?

Is there sufficient low voltage or 13. high voltage for the machine?

Is there a cost to upgrade the item 14. in order to meet district standards?

Does the item meet all codes? 15. Fire codes, ROE codes, etc.

If supplies are associated with the 16. item (i.e. printer cartridges or toner) what do the supplies cost and how often does it have to be changed?

Does the item have to be 17. picked up and delivered?

What is the final destination for the 18. item and does that location need to be prepared before installation?

Does the item need an asset tag? 19.

Does the donor need a letter from 20. the district stating the dollar value for tax write-off?

If you accept the item, remember

to respond with a thank you letter.

to help insure that all questions have been

considered and answered, one of the following forms

can be used to document the acceptance of the donation:


ISDLAF+Say "Yes" to Dual BenefitsWhen you renew with your affiliate ASBO, check the box for ASBOInternational Membership. With one payment, you can participate in both organizations—doubling the tools, resources, and colleaguesyou can call on to help you in your everyday responsibilities.Together, we can effectively manage resources to give every childthe power of education.

With the increasing responsibilities and fewer staff, the help

and expertise that I gain through ASBO membership is priceless.

Peter Willcoxon Sr., RSBA, White Bear Lake Area Schools (MN)

www.asbointl.org

www.iasbo.org | 39

ON pApEr: STATIC SOURCES FOR EDUCATION PROFESSIONALS

This book, an easy-to-absorb read and entertaining as well, is for anyone who has a concept that they want to share. yes, those in publicity can benefit from Made To Stick — that’s a given. But everyone has ideas; scientists, teachers, businessmen, journalists and even parents want to impart their life’s knowledge to their offspring. Their guidelines can help anyone achieve those goals.

The Heaths have put together six principles on making a concept “sticky” or memorable. They are: Simplicity, Unexpectedness, Concreteness, Credibility, Emotions and Stories, or SUCCESs.

To get these points across, it only takes one look at any of the many Urban Legends that, with the advent of our computer age, have taken on a life of their own. Stick starts off with one such myth, the “Organ Thief” cautionary tale. This story revolves around someone, typically a friend of a friend, who takes a step off their morality path and pays for it with the loss of a vital body part. It is simple: a guy walks into a bar. Unexpectedly, he is approached by a beautiful woman offering to buy him a

drink. It is concrete and credible — even if you've never been in a bar, you surely must know at least one person who has. It evokes the fear that can arise from participating in even the most mundane of actions. It tells a story.

Using this legend to begin their book brings home the point of just why this book is for “everyman.” It, like the rest of Made It Stick, is written in a friendly manner that sucks the reader into wanting more. This is not a journal that talks down to its readership, as many self-help and text books tend to do. Nor does it take a complex pre-course of study to understand. It is the combined talents of two authors and a love for what they do that makes it all happen.

Brothers Chip, a professor of organizational behavior at the Graduate School of Business at Stanford University, and Dan, consultant to Duke Corporate Education and a former researcher at Harvard Business School, have both made the study of mankind, what makes us tick and how people communicate their own life’s work. In 2004, they made the realization that, while they had taken different routes, they were really going in the same direction — so why not see what would happen if they worked together on a project? Three years later — voilà.

rE SOUrC E S

Experience and Experiments: Part human nature study, history lesson and practical wisdom

On My List

Made to stick: Why some Ideas survive

and others Dieby chip heath & dan heath

overview: Brothers Chip and Dan Heath team up in this title continuing the idea of stickiness popularized in

The Tipping Point by Malcolm Gladwell. Chip and Dan look to explain exactly what makes some ideas more memorable and interesting than others. Examples range from urban

legends and business stories to inspirational personal stories.

Chapters include a clinic section that demonstrates a case study that applies to each principle application.

story for anyone with ideas to share


overview: The School Security Program Tools & Resources binder is a unique security product. This half-inch three-ring binder is an organized way to develop and document important practices regarding security and emergency planning with a school building and throughout the district.

What’s Inside: Find numerous, valuable funding and planning resources in this compact and easy-to-use product. Some topics include: Outside Organization Addendum, Student Safety Audit, Staff Skills Survey and Inventory, Suspicious Mail

Poster, Bomb Threat Checklist, Lock Down Drill Evaluation Form, Incident Command Structure, Campus Map Information, Emergency Operation Planning Team, Emergency Contact Numbers, Resource Inventory of Emergency Equipment and more.

school District Budgeting By William T. hartman

school security Program Tools & resources By reta security, Inc.

overview: This unique resource is for both academics and practitioners, School District Budgeting provides a comprehensive look at the resource allocation process, from developing planning guidelines to reporting financial operation results.

The author, a Professor of Education at Pennsylvania State University, brings a unique perspective to budgeting, having served on the Board of Directors of the American Education Finance Association. He brings expertise from his role as the Principal Investigator in a federal project, Linking School Level

Resources with Student Outcomes, to develop methodologies for creating school-level resource utilization and productivity reports from existing district and state data.

What’s Inside: His perspective has created an all-inclusive guide that provides theoretical and practical treatments for the entire budget process.

Where to Find It: This is an ASBO International publication available through Roman & Littlefield Publishers at www.rowmaneducation.com. Purchase price is $64.95.

Where to Find It: The binder can be purchased at www.retasecurity.com, click on store. There are three purchase options: Binder for $49.95; Binder plus 30-min. consultation for $129.95; Or binder plus 1/2 day consulting. Call for price.

ON pApEr: STATIC SOURCES FOR EDUCATION PROFESSIONALS

www.iasbo.org | 41

overview: The current General State Aid formula was enacted by Public Act 90-548 in December 1997. In Fy 2010 the formula was changed to include an alternate PTELL adjustment for school districts that passed a limiting rate increase. That was also the first year for the advancement of the Corporate Personal Property Replacement Taxes by one year. That change continues this year with Fy 2011 GSA calculations using 2009 CPPRT revenues.

What’s Inside: The distribution of GSA to Illinois common schools is

determined by a statutorily defined funding formula. The formula provides for different methods of funding allocation, dependent primarily upon the equalized assessed valuation of property within a particular school district. This spreadsheet allows school districts to calculate GSA allocation.

overview: The School Business Services page on the Illinois State Board of Education website includes resources that are valuable for school business managers and the budgeting process.

What’s Inside: The resources available here include: Fy2010-11 School District Budget Form; Joint Agreement Budget Form; Budgeting Dates and Deadlines to remember; School Codes currently in Effect; and American Recovery and Reinvestment Act emergency accounting rules.

In addition, find help guidelines surrounding the budgeting process that include: mechanics of the School District Budget; The School Code of Illinois-Article 17; School District/Joint Agreement Instructions; Historical Archive – School District Budgets (2007-10); and Posting the budget to your school district web page.

Budget Business servicesIllinois state Board of Education

rEsoUrcEs

Where to Find It: This information is available on the Illinois State Board of Education website by visiting: http://www.isbe.net/funding/html/gsa.htm

Where to Find It: This information is available on the Illinois State Board of Education website by visiting: http://www.isbe.net/sfms/budget/default.htm

Government state claim Form spreadsheet Illinois state Board of Education

ON SCrEEN: DyNAMIC SOURCES FOR EDUCATION PROFESSIONALS


TH E FINAl wOrD

Great Ideas from Great Illinois asBo MembersLuke V. GlowiakAssistant Superintendent / BusinessSycamore CUSD 427

What is your professional role with regards to education? It is very important that the School Business Official be very familiar with the educational process. Since our end product is children’s education, a School Business Official must be able to counsel financial considerations.

What does school budgeting look like in 5–10 years? School budgeting continues to develop increasing complexity. The School Business Official will need to evaluate budget preparation in terms of the district’s strategic design and multi-year goal setting. School Business Officials should be able to discern a district’s educational goals by reading its budget. To develop this ability, School Business Officials need to increase the involvement of all levels of staff and school board to understand how available resources must be allocated to support that strategic design.

It will become increasingly important for School Business Officials to become aggressive in using financial forecasting . . .

What is the most important aspect of school budgeting? School Business Officials cannot underestimate the importance of long-term financial forecasting. Education will, for the next several years, experience the impact of the recent economic downturn. It will become increasingly important for School Business Officials to become aggressive in using financial forecasting to help their districts emerge from this economic downturn in a financially healthy condition.

If you could change one thing about school budgeting? Develop a certainty about available revenues. The present reliance on the “levy” process and the continued uncertainty of available State funding create uncertain revenue reliance.

www.iasbo.org | 43

ApplicAtion informAtion todd latham NIU Academic Program Advisor 815.753.1465 - [email protected] Sandi DudaIllinois ASBO Headquarters 815.753.9365 - [email protected]

Northern Illinois University & Illinois Association of School Business OfficialsfAll 2010

This unique academic and practice based program is built upon the Professional Standards for School Business Management as established by the Association of School Business Officials International. Therefore, each class is unique to the f ield of school business management. Included in the program is a three semester internship overseen by practicing school business off icials already serving in Illinois schools. This ensures that every student will exit the program with the breadth and depth of experience that is required to be successful in this growing educational leadership f ield. Also, due to this unique partnership, students enrolled in these programs will automatically become members of Illinois ASBO and receive all of the benefits afforded practicing school business off icials in Illinois. Be sure to visit www.iasbo.org to see what Illinois ASBO has to offer.

School BuSineSS mAnAgement cohort

fAll 2010 — v ernon hillS high School


EXHIBITOR REGISTRATIONNow Open @

iasbo.org/acregistration

ATTENDEE REGISTRATIONMonday, December 6

stay connected at WWW.IASBO.ORG

Teri Yanovitch: Creating a Culture of Service ExcellenceWorld-class customer service doesn’t just happen, it must be planned and managed if it is to be delivered consistently. A service philosophy and service standards need to be established so all employees know the expectations of how to deliver great service. Teri will identify the leadership actions needed to create and sustain a culture of service excellence.

Don’t MIss

illinois asbo update winter 2010

Documents

school business managers

budgeting process

podium budgeting

orland school district

budget funds

years budget

student success

budget student achievement