Portland Public Schools

1
Portland Public Schools

• The Funding Picture for 2006-07

2/13/06
2
Declining Funding for PPSBut Why?
391.6
365.7

Millions
329.0

Assumes Portland gets its share of the states
projected school funding increases and General
Fund only, the full budget including all federal
funds can be found at www.pps.k12.or.us
3
The Budget Last Year


This is the full budget including general,
federal and grant funds.
4
This Year going, going
I-Tax/City
5
Next Yeargone!
Federal
6
Where the money goes PPS General Fund
221.2m
69.6m
63m
14.9m
9.6m
17.7m
Total Budget 396m
Per ODE Date Base Initiative Does not
include federal funds (either school based or
adminstration) Local discretion with these
funds unlike federal funds
7
Why does it cost more to run PPS?

• Our Teachers are More Experienced and Cost More
  60 of teachers are at the top of their salary
  scale earning an average of 61,800/yr.
  (87,000/yr. with taxes/benefits)
• We Have Too Many Buildings Portland has 25 more
  students than Beaverton and twice as many schools
• Our Buildings are Old Half of PPSs schools were
  built before 1935, only one built since 1972, so
  more expensive to maintain old systems that keep
  breaking down
• Fewer Families and Less Children Each lost
  student means approximately 5,000 lost state
  revenue and only a 2,500 reduction in costs

8
Comparisons With Beaverton

• PPS Beaverton
• Total Tax Rate (per 1000) 4.77 7.96
• Students 46,990 36,502
• No. of Schools 85 46
• Poor Students 45 31
• Ave. Teacher Experience 13.61 9.84
• Local Option No Yes
• Total Budget (includes all funds federal and
  general except debt service)
• School Instruction 60 52
• School Support 27 30
• Central Instruction 5 2
• Central Support 8 15
• Licensed Staff Allocation K-5 23.8 26.15
• 6-8 23.5 24.35
• 9-12 22.7 26.4
• Beaverton Website
• Number of students per licensed staff general
  fund only (teachers, counselors, librarians,
  educational assistants) this is not exactly
  class-size
• ODE data base regrouped by Bridgespan for
  benchmarking

9
How big is the hole?

• 90 million - A loss of 23 of the budget in 2
  years
• 40 million - 2004-05 Local Option and
  desegregation funding expired
• 50 million - 2005-06 Local Income Tax expires
• Capital Bonds expired in June 2005 leaving a
  hole of 20 million annually for building
  renovation, repairs and maintenance
• Assuming no increase in state funding

10
What does PPS need next year?

• 57 million to avoid further cuts and to
  retain a full school year
• 50m in the expiring I-Tax
• 7m of delayed cuts from 05-06

11
10 Years of Cuts and Efficiencies

• CUTS
• Cut central staff by 33 (102 jobs)
• Cut teaching positions by 15 (506 jobs)
• Closed 14 school buildings
• EFFICIENCIES
• Return some special education programs to
  district for a savings of 2.4m
• Reduced facilities maintenance costs by 25
  (down to the state average)
• Switched buses to propane (avoided increases of
  1m/yr)
• Contracted out custodial services (saving
  6-7m/yr)
• Sold bonds to refinance PERS liability (saving
  8m/yr)
• Held down health insurance costs for every
  employee group
• (all capped at 764-779 or cost sharing)

12
Cuts made in 05-06 Budget 24M

• 245 teaching positions 16m
• Cut staff and funds in ESL, special education and
  central administration 8m
• Implemented health care caps for all unions or
  cost sharing for all teachers
• Increased fees for athletics and Outdoor School
• Closed 5 schools - 1-2m in on-going savings
• Negotiated 300,000/year reduction in
  transportation contracted services
• Licensed positions

13
Parents Step Up

• Teachers paid for by parents - 26 in 04-05 and
  33 in 05-06 teaching positions - 2.6 million
• Athletic pay-to-play fees increased by 50 (to
  175 per sport) - 700k
• Outdoor School fee of 100 per eligible sixth
  grader - 170k
• PTAs, student clubs, booster clubs, auctions,
  etc. - 6.8 million

14
Options Potential cuts to fill the 06-07
gap 57M
People 81 of budget is in
people Non-People 19 of budget
is in supplies, materials,
utilities, contracted services and other
expenses (excluding debt service
and contingency) As of 12/30/05
15
Options People Cuts

• 750 (of 2,473) teaching positions 57m
• Shut down central 14.9m
• Cut school days for one year only (violates state
  law to do for more than one year consecutively) -
  75 (of 190) days of school 57m
• No salary or benefit increases for any employee
• Cut all custodial services 11m
• Outsource maintenance (violates contract) 3m
• Stop all building maintenance (doing only
  emergencies at this time) 6.3m
• Cut special programs
• Outdoor School 840k
• Non-mandated student transportation 100k
• Non-special education transportation (violates
  state law) 2.4m

16
Options Other Cuts

• Close 14 (of 85) schools 5m
• Lower the heat in all schools 2 degrees - 200k
• Increase fees for all sports programs another
  50/sport - 200k
• Cut purchase of any new computers - 1.5m
• Cut computer school support (repairs) - 800k
• Eliminate software improvements for PeopleSoft -
  900k
• Drop high speed network and return to T-1s for
  all schools - 240k
• Eliminate mileage stipends - 160k
• Eliminate all out of district travel - 350k
• Eliminate all local meetings (rentals, food,
  supplies) - 600k
• Eliminate professional memberships for PPS -
  30,000