Nov

Michigan Is Not Alone

Admin — Wed, 18 Nov 2009 13:00:00 -0600

What more can be said about the dire financial condition all of us face in our districts? All of us are grappling with per pupil reductions to our foundation allowances and trying to figure out how we will balance our budgets next year, and I do mean all of us. I don’t know of one district that will be able to escape the budget axe next year, and absent any relief coming from Lansing, the cuts will be unprecedented. Although this is not a comforting thought, Michigan is not alone in its budget woes.

Within the last month, I have read about at least ten other states that are dealing with struggling economies brought on by the last recession and are telling their state education agencies that they will need to manage with less resources next year. The governor of Iowa has ordered a 10-percent, across-the-board state budget cut, creating difficulties for schools that lack the cash reserves to offset mid-year budget cuts. James Scharff, director of the Iowa Association of School Business Officials, said, "school leaders who want to preserve education programs might face cash-flow problems that force them to borrow money." In Kansas, the state has already reduced school aid by 4.8 percent or $215 per pupil this year. Lower than expected tax collections this summer and declining property tax values may force the state to cut aid even further. Sound familiar?

In Alabama, districts received a 7.5 percent reduction in school aid, and this is on top of an 11 percent reduction the year before. In South Carolina, an 11.7 percent jobless rate has reduced state revenues by almost 10 percent, which in turn will force the state to make spending cuts to its education appropriation. South Carolina, like Michigan, is making the reductions one third of the way into the current budget year. To deal with the shortfall, the governor is asking state agencies to tell them how they will deal with a 15 percent reduction to their budget. This is on top of the 20 percent reductions they received last year. Sound familiar?

In Utah, the state superintendent is urging lawmakers not to cut funds to education any further, stating that “our schools can’t provide essential services to students without essential funding.” State board of education members are asking lawmakers not to cut education by dipping into the state’s rainy day fund and using $100 million that was set aside for future education funding. One member of the state legislature cautions about not using all of the rainy day funds “because they are one-time funds, and once they’re gone we won’t have anything else to use.” Sound familiar?

In Maryland, the governor has told superintendents that he needs their help to deal with a $2 billion shortfall in next year’s $13 billion operational budget. The president of the senate stated that he did not believe that the state would be able to continue paying the entire cost of teacher pensions because he did not believe it was sustainable. Doesn’t this sound like Michigan prior to Proposal A? And in Montgomery County, top county officials are threatening to sue the state after the state attorney general found that the county had failed to meet the state’s minimum level of education funding. Sound familiar?

So why I am writing about the education woes of other states when Michigan is having such a tough time? One reason is to point out that we can’t simply look to other states for a simple solution because there are no simple solutions and other states, like Maryland, are dealing with the same issues we are dealing with now and prior to Proposal A. Another reason is the enormity of situation. Hawaii is estimating a $1 billion deficit through June of 2011, and their governor is worried that the public still does not fully comprehend the magnitude of the situation. In Troy, we have made budget reductions for seven years in a row, but those reductions will pale in comparison to what we will have to reduce next year. We have made a series of presentations to explain how school funding works and are holding community forums to solicit input on budget reductions. Like Hawaii, we need to communicate the magnitude of the situation, as all districts will need to do as we approach the budget cliff next year. Whether states operate county wide districts like South Carolina or Maryland, or local districts like Kansas and Michigan, or even a single state wide system like Hawaii, school funding problems exist.

Throughout all of this however, we must continue to concentrate on educating our students. We must still strive to offer a comprehensive curriculum and prepare our children for tomorrow. The children of today will be the leaders of tomorrow. Let us not lose sight of our educational mission.

MSBO Facilities Benchmarking Survey Provides Crucial Data

Admin — Wed, 18 Nov 2009 12:00:00 -0600

Author David Cotts, in The Facility Management Handbook (1999) regarding benchmarking states, “Doing more and being more responsive with fewer resources means that facility managers need to be able to measure work realistically and have better evaluative tools.”

MSBO’s Facilities Benchmarking Survey is one of those tools. For the eighth year, MSBO has conducted this survey. This survey is an important tool for facilities and business managers because you can compare costs and practices of school districts throughout Michigan.

Thank you to all the school districts that participated. As school districts determine where to reduce costs further, it is crucial to understand where you stand in the area of facilities operations. This report can help you compare your district to others around the state; both by size of district and by region. The survey also helps you understand the impact of certain cuts.

MSBO has contracted with Applied Solutions, a Michigan based independent consulting firm, to carry out the study and publish the results for school districts since 1999.
According to Applied Solution’s Robert L. Moles, using benchmarking data, internal goals and objectives are set to match the best results in each category. As each segment of the organization is benchmarked, progress toward those goals is measured and the entire organization benefits.

Moles stresses that the information contained in this report is strictly quantitative, and does not address the quality of maintenance and custodial work in schools. The Facilities Benchmarking Survey numbers represent a starting point, with measurements common to all districts. As you interpret the data presented, certainly it’s important to know your numbers; but the important factor is to understand why there is a difference and then look to strategies that will influence your key areas of concern.

MSBO’s 2007 survey showed that Michigan schools in the area of facilities maintenance and cleaning spend more than a billion dollars annually. That number continues to rise. MSBO members have used the information to:

• Obtain additional funding for maintenance.
• Pass building improvement millage and bond issues.
• Evaluate the question of subcontracting.
• Assist in labor negotiations.
• Improve efficiency in building operations.

MSBO is committed to providing this important information to our members to help you make decisions about the allocations of school dollars in an informed, data-driven basis.

Results from this year’s survey will be released in December.

Do Our Leaders Have the Courage to Fix Michigan’s Education Crisis?

Admin — Wed, 18 Nov 2009 11:00:00 -0600

The last few weeks and months have certainly been crazy, what with all the issues surrounding the funding problems and trying to address a state budget has gone haywire. Last week’s gathering at the Capital for SOS! – Save Our Students, Save Our Schools and Save Our State, the release of the winners in the state’s Project Re-imagine contest, the need to pass legislation so that Michigan can qualify for the Federal Race to the Top Grants, and certainly the continuing bad financial news for Michigan and the School Aid Fund were just some of the issues we faced.

I rarely have the time to listen to Sunday morning political news shows, but I did happen to catch a portion of Meet the Press with David Gregory this week. An unlikely trio, U.S. Secretary of Education Arne Duncan, former House Speaker Newt Gingrich and one-time Democratic presidential candidate Al Sharpton have been touring the nation's schools and were on the show to challenge conventional thinking. It was an interesting discussion and a few quotes rang true to me as I think about the way our leaders could break the current budget logjam and address the many issues facing Michigan.

I would like to share some quotes that resonated with me.

Rep. Gingrich said, “…in a time when we have a liberal, Democratic president who has the courage to take on the establishment in education and who's prepared to say every state should adopt dramatic, bold reforms, I think as, as--if politics are the art of the possible, our children deserve a chance to see us come together, to put their future above partisanship and to find a way to take on the establishment in both parties and try to get this solved.”

Rev. Sharpton said, “I think that both parties have failed, but I think others have failed; I think unions have failed, I think parents have failed, I think communities have failed. …I agree with him (Gingrich) that we've got to find the common ground. And what President Obama said to us in the meeting in the Oval Office in May is if we agree on 70 percent, can't we achieve that? We've got to move forward. The problem is that we've all stayed within our battle lines, and the kids have suffered.”

Sec. Duncan said, “Teacher evaluation in this country is basically broken. Great teachers don't get recognized. They don't get rewarded. We don't shine a spotlight on them, we don't learn from them. Teachers in the middle don't get support that they need. And teachers on the bottom, who frankly need to find another profession, that doesn't happen, either. When a system is broken for every adult--high performing, those in the middle, at the bottom--if it's broken for every adult, it does not work for children. So we all have to change. This thing doesn't work. We all have to do some things very, very differently. At the heart has to be results for children.”

Rep. Gingrich said, “The three of us are making a positive gamble. We're each risking, to some extent, our reputation and our future, saying, "What if we come together and what if we actually achieve a breakthrough?" …But I think this--the country is tired of politicians finding a reason not to try to work together and not to try to gamble on the future. On this topic, the President has said publicly in speeches, said it when he was a candidate and it didn't help him to get the Democratic nomination, that he favored fundamental change in education, even if it made the unions uncomfortable. And I just think we have a chance here to break through in very practical ways, but it does require a gamble on our part of good faith.”

Sec. Duncan said, “…We all have to step up. … When that doesn't happen, when the adults fight, when there's adult dysfunction, guess what, children lose.”

These are sobering comments on the state of solving the education problems this country and our state face.

In Michigan, as we listen to the rhetoric coming from state government, business leaders, labor unions and even our own associations - and you know there has been no shortage of it - we can only wonder what would happen if our leaders had the courage to move away from their own comfort zones of the “party line” and take the risk to truly put the children of Michigan ahead of our egos and future aspirations to come together to fix Michigan’s schools.

It will take courage to fix our K-12 financial problems. It will not be easy for anyone.

Our first step in the direction of reform should include:

Tying teacher performance to student performance, reward high performing teachers, provide help to the middle performing teachers and guide low performing teachers to other professions
Funding of public schools, provide a tax structure that adequately funds schools now and funding that grows as the inflationary costs of schools rise
Examining ways to conserve precious resources to maximize the school funding that gets to the classroom and find ways to provide instruction in a more cost effective way
As Secretary Duncan said, “When the adults fight, when there's adult dysfunction, guess what, children lose.”

It’s time for all of us to find the courage to put children first, to get out of our comfort zones, and to face these challenges.

SOS! Parents, Students and School Communities Descend on Lansing

Admin — Wed, 18 Nov 2009 10:00:00 -0600

More than 1,500 supporters of public education from across the state descended on Lansing to urge the Legislature to restore funding cuts and find a long-term solution to fix Michigan's school funding system last week on November 10.

The event was initiated by local school districts and organized by the SOS! Task Force, with considerable support from school districts and their community members. The event provided a venue for parents, school board members, students and district administrators to talk to their legislators about cuts to school funding and the effect on their districts.

The three main goals of SOS! include:

Promoting the replacement of the current funding system with one that's equitable and provides a more stable funding source.
Assisting schools in enhancing efficient and effective delivery of educational services. Including promoting changes in existing laws and regulations, as well as the development and support of processes for thoughtful self-evaluation of current practices, and the exploration of alternative approaches to managing schools and educating students.
Providing materials and assistance to help schools understand and communicate about the financial situation school districts face.

A school board sample resolution, news release and petition are available on the SOS! Web site. You can also sign up to get involved with SOS! at the local level, connect with SOS! on Facebook and follow SOS! on Twitter.

You Can’t Afford to Miss The Financial Strategies Conference!

Admin — Wed, 18 Nov 2009 08:30:00 -0600

MSBO Financial Strategies
January 19-20, 2010 • 9 am to 4 pm each day • Kellogg Center, East Lansing

Get the latest information on the economy, the budget, and state aid at the MSBO Financial Strategies Conference. Lodging deadline approaching. This conference will help you and your district prepare for upcoming budget preparation and labor negotiations. We have planned topics ranging from the latest economic forecasts, a school funding update and negotiation preparation to the latest on health insurance, retirement, dealing with possible deficits, and benchmarking your district...and more! Fees: $240 MSBO members • $300 Nonmembers

Click here to register online.

Lodging Information:
Overnight accommodations are NOT included in the registration fee. A block of rooms is reserved at the Kellogg Center. Make your overnight accommodations directly with the Kellogg Center at 517.432.4000 in order to receive the conference rate. Conference rates are: $91 single/double. Identify MSBO as the group you are with to receive the special rates and reserve your room by Dec. 19, 2009 to ensure lodging.

Nominations Now Being Accepted for MSBO Board of Directors

Admin — Wed, 18 Nov 2009 08:00:00 -0600

Have you ever thought about running for the MSBO Board of Directors? Serving on the MSBO Board provides you the opportunity to help set the policies and direction of your organization.

Rob Burgess, MSBO’s Immediate Past President, serves as the Chair of the Nominations Committee for 2009-10. The MSBO Nominations Committee, comprised of the five most recent past-presidents, recommends candidates for the ballot for the MSBO Board of Directors.

As a reminder, the MSBO Bylaws states, names may be presented to the Nomination Committee for consideration and possible nomination by submitting a petition with at least 30 active member signatures to the committee chairperson on or before December 1. If you’re interested in being a candidate or would like to nominate someone for the committee to consider, e-mail Rob Burgess at rburgess@remc11.k12.mi.us.

This year there is only one board position open, replacing out going Immediate Past President Rob Burgess.

MSBO Offers Lead Renovation, Repair and Painting Certification Training

Admin — Wed, 18 Nov 2009 08:00:00 -0600

The Environmental Protection Agency (EPA) enacted the Lead Renovation, Repair and Painting (RR&P) Rule in April 2008.

This far-reaching training and work practice regulation, being implemented over the next year, covers private residences built prior to 1978, but also includes all pre-1978 Child Occupied Facilities, which include public and commercial buildings that children under the age of six attend, including elementary school kindergarten classrooms, applicable restrooms and cafeterias.

MSBO is now offering training that will certify workers in compliance with these rules. EPA Certified Trainers will provide training.

Specialized training is required for any outside contractor or in-house employees who will disturb more than 6-square feet of lead-based painted components during renovation or remodeling activities in applicable areas of a building. The rule has lead component identification obligations, tenant and parent notification requirements, and stringent work practice/cleanup and record keeping requirements.

Each school district should consider providing this training to at least one maintenance staff in order to ensure regulatory compliance in the event that in-house personnel need to disturb painted components within applicable spaces. The training will last for a period of five years before a refresher course is required.

There are currently 3 workshops to choose from:
December 11, 2009
January 25, 2010
March 22, 2010

The classes will be held from 8 am to 5 pm at the MSBO office, 1001 Centennial Way, Lansing, MI.

Registration fee: $200.

Dynamic Budget Projections Software Update 2010

Admin — Wed, 18 Nov 2009 06:00:00 -0600

Just in time for your new budget and negotiation season!

MSBO introduced Dynamic Budget Projections© to Michigan districts to great reviews.
Over 370 Michigan districts have purchased and have it available for their budgeting process. Now, Version 2010 of Dynamic Budget Projections© is available. The 2010 version includes all prior revisions and has been updated based on user feedback including the most recent State Aid changes based on the 2009-10 approved State School Aid Act.

Annual Maintenance and Support–Version 2010

One of MSBO’s commitments is to maintain, support and upgrade the program from year to year. When a district purchases the Annual Maintenance and Support, they receive the update to the software (Version 2010), updated documentation that explains the changes, and software support.

This 2010 update includes:

Two optional detail sheets have been added based on requests from users. This will allow for entry of greater detail of revenues and expenditures
A current State Aid database was added for easy foundation allowance lookup
Additional formula tests have been added to ensure accurate calculations when negative foundation allowance amounts are projected for future years
ARRA impact worksheet added to demonstrate and communicate stimulus funding issues and concerns
Foundation allowance proration and 20j funding veto variables have been added to this version

The ISD version released in the spring of 2006 will not be updated this year unless requested by the ISD Committee.

And now for the cost ...

2010 Annual Maintenance and Support is $110.
A discounted rate of $90 is available (if all districts that purchased the DBP program in an ISD also choose to purchase the Annual Maintenance and Support).
A CD will be mailed to you upon receipt of your payment.

What about training?

Training is not required for the annual update. Formal training is scheduled on the Tuesday prior to the Annual Conference every year. In addition, a training session will be scheduled to follow the release of the update each year. Districts that desire a refresher may attend the updated basic training. The cost and timing will depend on the number of attendees.

Order Your Copy Now!

ASBO Annual Meeting in Chicago was a Success

Admin — Wed, 18 Nov 2009 05:00:00 -0600

Thank you to those who attended the 95th ASBO Annual Meeting last month and for representing our Michigan membership in Chicago. A special thank you to the sponsors of the fifth annual Michigan Reception:

Fifth Third Securities, Inc.

Hungerford, Aldrin Nichols & Carter, PC

Kingscott Associates, Inc.

MILAF+/The PFM Group

Plante & Moran, PLLC

SET SEG

Stifel Nicolaus & Company

We had a great turnout at the reception with more than 50 MSBO members and guests in attendance. It is the support of these sponsors that made the event possible and a success. Please thank them when you get the opportunity. I know there was a lot of good professional development sessions and plenty of camaraderie shared during the days in Chicago. It was nice to see so many members take advantage of having a national ASBO conference so close to home.

MSBO 2010 Awards Information Available

Admin — Wed, 18 Nov 2009 03:00:00 -0600

MSBO has created awards to help school districts celebrate successes and to recognize the extraordinary contribution of individuals to their school district and MSBO. MSBO also offers two scholarships, which encourage and recognize individuals currently employed in school business who are improving their technical skills and competencies by pursuing an undergraduate or graduate degree.

In the effort to streamline the process, the deadline for submission of all awards and scholarships is Jan. 31, 2010. Details and criteria for the following awards and scholarships can be found on MSBO’s Web site. We encourage you to apply for these scholarships and consider nominating a colleague to receive these awards.

School Business Official of the Year Award
Meridian Award of Excellence
Distinguished Service Award
Mark & Kay Stebbins Scholarship
Wally Piper Scholarship

Click here for more information about these awards.