District Expenditures Per Pupil Unit

Why are we seeking to revoke and replace our current Operational Levy?

The decision to revoke and replace our current Operational Levy in the amount of $415 per pupil and replace it with $615 for the first two years and $815 for years three through ten was recommended to the school board by the school’s financial committee. The committee consists of the superintendent and three school board members. The board considered the following:
• State funding has not kept up with inflationary costs.
Examples of such costs include building maintenance, fuel and utility costs, salaries and benefit programs, technology, textbooks and supplies
• Declining enrollment.
Fewer students means less revenue.
• Cost of maintaining current academic programs.

Has the District carefully managed our schools?

Yes, the school district has a history of excellent fiscal responsibility. Even with declining enrollment in the past few years, we have continued to provide a quality education and operate in the black. The school district:
- Reduced its expenditures through attrition over the past 5 years.

- Reduced expenditures by $60,000 this past year.

- Will continue to reduce expenditures as
needed due to declining enrollment.


When you compare expenditures on a per pupil basis the Paynesville Area School District is far below the statewide average and below area schools.
School District Expenditures Per Pupil Unit*
Albany…... . . . . . . . . . . . . . . . . . . . .$7,428
Paynesville . . . . . . . . . . . . . . . . . .$8,053
Melrose . . . . . . . . . . . . . . . . . . . . . . $8,066
EVW . . . . . . . . . . . . . . . . . . . . . . . . .$8,175
Rocori . . . . . . . . . . . . . . . . . . . .. . . .$8,180
NLS . . . . . . . . . . . . . . . . . . . . . . …….$8,259
Sauk Centre. . . . . . . . . . . . . . . . . . ..$8,380
Group AVERAGE . . . . . . . . . . . . . ..$8,814
BBE . . . . . . . . . . . . . . . . . . . . . . . . .$9,023
ACGC . . . . . . . . . . . . . . . . . . . . . . . .$9,092
Montevideo . . . . . . . . . . . . . . . . . . .$9,144
State Average . . . . . . . . . . . . . . . . .$9,311
LPGE. . . . . . . . . . . . . . . . . . . . . . . . . $9,416
LQPV. . . . . . . . . . . . . . . . . . . . . . . . .$9,737
YME. . . . . . . . . . . . . . . . . . . . . . . . .$10,100
Minnewaska. . . . . . . . . . . . . . . . . . .$10,349
*Source: FY 2008 Department of Education Profiles

Your school board members and I will be attending various community meetings to review and answer any questions you may have. I will also have information on my blog located on the district website www.paynesvilleschools.com. You may also email me at tburlingame@paynesville.k12.mn.us with any questions. I will have a Sup’s On columns addressing our operation referendum each week as well. You are all invited to attend the public hearing, hosted by the school district, on Monday, October 19th at 7:00 P.M. in the auditorium.

Mr. Burlingame
PAS Superintendent

Paynesville Area Schools will be seeking voter approval to revoke and replace the current operation referendum on November 3, 2009. The district had passed a 10 year referendum in April 2002 for $415.60 per pupil. This is set to expire in 2013. Due to declining enrollment, increased operation costs and lack of state funding, the board and I have decided to revoke our current $415.60 and replace it with $615.60 or a $200 increase for the first 2 years. Years 3 through 10 it will increase another $200 to $815.60. The state average for current school district referendums is $827. The district has chosen an incremental approach as we realize the current economy is not doing well and are optimistic that it will bounce back soon.

This Sup’s On column will illustrate the comparison of area referendums and where Paynesville falls in the mix. As you can see by the graph below, Paynesville is on the low end in comparison to our neighboring districts and other conference schools.

2009-2010 Referendum Allowance per Resident Pupil Unit
**New London Spicer $398
Albany $405
*Paynesville $416
*Eden Valley Watkins $450
Rocori $472
*Montevideo $507
Minnewaska $632
Group Average $660
Melrose $700
Long Prairie Grey Eagle $700
State Average $827
BBE $838
Yellow Medicine East $984
Sauk Centre $1000
ACGC $1075
Lac Qui Parle Valley $1100

*Going to voters in November to increase their referendum.
** Passed $200 last fall moving NLS to $598 effective next year.

Lack of funding from the state is forcing school districts to ask their local tax payers to assist in funding our schools. In order to remain competitive with neighboring districts by offering programs that will allow us to maintain or increase our enrollment, we must increase our per pupil dollars. Without adequate funding, we may be forced to cut educational or extracurricular activities.

Your school board members and I will be attending various community meetings to review and answer any questions you may have. I will also have information on my blog located on the district website www.paynesvilleschools.com. You may also email me at tburlingame@paynesville.k12.mn.us with any questions. I will have a Sup’s On columns addressing our operation referendum each week as well. You are all invited to attend the public hearing, hosted by the school district, on Monday, October 19th at 7:00 P.M. in the auditorium.

Sincerely,


Todd Burlingame
PAS Superintendent

President Obama's Opening Day Speech

Our district will not be airing the President's speech on the first day of school. The administration and staff will preview the speech and curriculum for content and grade level appropriateness. If the decision is made to show the President's speech later in the week, letters will be sent home to parents giving parents the option to opt their student out of the speech. There will be no consequences for students opting out.

Thanks
Mr. Burlingame

Legislative Summary as it relates to District 741 Finance

The State legislature, in an effort to balance their budget, cut K-12 education by $500,000,000 or 8.7%. This money is being replaced by the Federal Fiscal Stabilization Funds dollar for dollar for a net change of $0. This is the good news. The bad news is that we are losing $51 per pupil unit of one time money placed on the formula last year and another $55 per pupil unit of one time technology and operating capital money resulting in a loss of $106 per pupil unit. We gain $33 per pupil unit from new legislation passed in 2008, which used to be subtracted from the formula. The adjustments in K-12 funding result in a reduction of $73 per pupil unit. This is an approximate loss of $90,000 in revenue to our district for the 2009-10 school year.
The district will receive additional revenue in the amount of $212,000 in Special Education and $70,000 in the Title programs over the next two years from the American Recovery and Reinvestment Act, ARRA. Basically, these funds are to help districts with Special Education and Title costs. We will be required to follow the federal guidelines as well as document and report to the state on how these funds will be used. This program is a reimbursable program where we incur the expenditures, pay for them and then get reimbursed. This should help free up some general fund dollars which have previously paid for Special Education and Title expenses. These funds will help the district through these challenging economic times. There are also grants available through the ARRA which we may or may not qualify for. We are waiting for more information from the Minnesota Department of Education.
In continuing his attempt to balance the state’s budget, the Governor has just enacted a 73/27 shift for K-12 education for the 2009-2010 school year. It had previously been set at 90/10. This means the district will receive 73% of its revenue in fiscal year 2010 and the remaining 27% in fiscal year 2011. This may cause a negative cash flow for our district, thus we will do aid anticipation borrowing to prevent any cash flow shortfalls during the year. We still receive our money, just not in the school calendar year and the state is able to utilize the 27% to help offset their budget.
The district just approved the revised 2008-09 budget which is deficit by $189,000 and next year’s budget shows a deficit of $389,000. The district has done a great job building a fund balance over the past 4 years. We are fortunate to have a fund balance as we have been able to use it to cover our budget deficits. With no new revenue coming into the district, we will be asking the voters this fall to revoke and replace our existing operating referendum. We are currently at $415 per pupil unit and looking to move to $615 years 1 and 2 and then $815 in years 3 through 10. Look for more information regarding the referendum this summer and fall. Please contact me at 243-3410 ext 1149 or email tburlingame@paynesville.k12.mn.us with any questions you may have.

Thanks
Mr. Burlingame
PAS Superintendent

H1N1 Virus

April 30, 2009

Dear Paynesville Area Families:

Yesterday, I sent a note out to report on a probable case of H1N1 in a person connected to the Rocori Middle School. That probability was confirmed this morning when officials from the Minnesota Department of Health (MDH) announced that the CDC has identified the virus as H1N1 (swine flu). Health officials have also been careful to report that the individual who was infected was never seriously ill and is now well on the way to recovery. Indeed, all of the steps taken by the MDH and the Rocori school have been purely precautionary. In many ways, the swine flu virus is looking and acting like the kind of influenza that moves through the country every year. What makes this one different, apparently, is that it is a new strain so greater caution is in order.

I was involved in a phone conference call with MDH and Minnesota Department of Education officials late yesterday afternoon. On the line were the superintendents of nearly all of the districts in the immediate vicinity of Rocori. We had the chance to get detailed information regarding swine flu and we were able to ask many of the questions which are coming in to our own school districts. We received the kinds of assurances parents and caregivers would want to have regarding the safety of our children. We were all comforted in the call. The MDH provided an excellent link to us. You can find up to date information at http://education.state.mn.us/mdeprod/groups/communications/documents/announcement/013894.pdf

We will continue to follow the advice of the MDH as we attempt to keep our students on the usual course of studies and activities this spring. In yesterday's message, I highlighted the kinds of common sense procedures we should all follow: wash hands thoroughly and regularly, cover coughs, and stay home when sick. We should all be able to continue to go about our daily lives knowing that state health officials are taking all of the appropriate steps--including making sure schools are informed--to keep people safe. We will continue to count on you to help--and to offer our children ongoing assurances of calm and caring support.

Sincerely,


Todd Burlingame
PAS Superintendent

Parents and Community Members are Cordially Invited

Please accept this invitation to attend a community meeting and participate in our district’s strategic/visioning process. The meeting will be held Monday, April 13 in our auditorium. We will have coffee and cookies at 6:00 p.m. and move into the auditorium for a sharing of information and ideas at 6:30 p.m. Our ultimate goal is to get a sense of what our community values in our schools.
As members of our community, we value your input and look forward to hearing your thoughts regarding the direction we should be taking in the education of our children. Please visit our website at www.paynesvilleschools.com, and click on the district survey to complete a community member survey. We will also have paper copies located in each office for those not having access to a computer. Surveys will be completed by community members, students, and staff. Results will be compiled and shared on the 13th.
The end result of this process will be a working document which the board and administration can refer to as we move forward providing the best quality education for our students and families.
If you have any questions or comments, or are unable to attend the meeting, please feel free to call me at 320-243-3410 ext. 1149, or email tburlingame@paynesville.k12.mn.us. I look forward to hearing your thoughts on the future direction of our district.
Hope to see you on the 13th.
Sincerely,

Todd Burlingame,
Superintendent of Schools

District Looks To Revoke/Replace Referendum

The board and I have been wrestling with the possibility of having a revoke and replace referendum and have made the decision to hold an election this fall. Our current referendum is $415 per pupil unit. The state average for Minnesota school districts was $850 per pupil unit as of November 2008. Due to lack of funding from the state, districts are being forced to increase their referendum to continue current offerings and programs, or cut programs and services. We have worked hard to build a fund balance of $1,116,796 as of June 2008. This year’s budget is deficit by $352,000 and next year’s preliminary budget is deficit by $600,000. It doesn’t take long to spend down our fund balance with no new dollars from the state. The district is looking at cutting $50,000-$70,000 for the 2009-10 school year. The state is dealing with a $4.6 billion deficit and many people have lost their jobs. The board and I began this discussion last year and had no idea the economy would fall like it has. I do not see any new dollars coming to K-12 education and hopefully we will not see huge reductions in education. The revoke and replace referendum would move our current referendum from $415 to $815 per pupil unit. Due to the economic uncertainty, we are looking at 2 options. Option one would increase incrementally to $815, with years 1 and 2 moving to $615 and years 3 through 10 to $815. This option would increase the referendum by $200 for the first 2 years and another $200 for years 3-10. The other option would move to $815 per year beginning with year one. Agricultural property would pay taxes for the proposed referendum based only on the value of the house, garage and one acre. Seasonal recreational property would pay no taxes for the proposed referendum. For tax impact purposes, I will use $150,000 market value for residential homesteads, apartments, and commercial-industrial property. Moving to $615, or an increase of $200, would increase taxes by $5.08 per month or $61 per year. $815, or an increase of $400, would increase taxes by $10.83 per month or $130 per year. If the district chooses the first option, the tax impact would be $5.08 per month for the first 2 years and then increase another $5.75 for years 3-10. Look for more information regarding the proposed referendum on our website www.paynesvilleschools.com and in the local paper. I would also encourage you to attend the April 13th Community Meeting, and/or contact me at tburlingame@paynesville.k12.mn.us or call 243-3410 ext. 1149 with any questions.

Thanks
Mr. Burlingame