Q. What cost savings would be realized if members of the Troy Education Association agreed to a compensation freeze next year? How would a freeze in compensation impact next year’s reductions?
A. Under the terms of the agreement with the TEA, compensation increases for members will cost the Troy School District approximately an additional $2.5 million in the 2010-2011 school year. All members of the Troy Education Association are scheduled to receive a one percent pay increase next year. In addition, members who are scheduled to receive step adjustments will realize salary increases between 3.9 and 11.5 percent. Salary steps are annual increases that are provided to members based on experience. These salary step increases are commonly included in teacher union collective bargaining agreements and are not unique to the Troy School District. In addition to increases based on experience, the salary schedule also provides increases when teachers complete additional college course work and/or obtain advanced degrees. These increases are not reflected in the percentages above.
The proposed reduction of 37 teaching positions is projected to realize savings of $2.3 million. Earlier this school year, the District formally requested that the Association reopen the current agreement to explore cost savings. This request was declined. (For correspondence related to this request, please see this link.).
Since that time, the District has discussed the possibility of a compensation freeze through a letter of agreement with the association leadership. Under a letter of agreement, the union and District can agree to changes without the reopening of an existing contract. A compensation freeze for the association members would offset the need to layoff any current TSD teaching staff.
Q. How will reforms or revenue changes impact the Troy School District’s budget position?
A. Since school funding levels are set annually by state lawmakers, proposed reform measures or revenue enhancements could positively impact the Troy School District’s budget position. There is legislation in both the House and Senate that will impact funding levels for our schools through increased revenue and reforms related to health care and retirements. These proposals and updates are listed on our Web site at this link. Troy parents are encouraged to make their views known to key state lawmakers. Contact information is located at this link.
How will the elimination of elementary Spanish at Grades 1 and 2 and restructuring of fifth grade music offerings impact the scheduling of the elementary specials?
Troy elementary teachers are provided 225 minutes per week of preparation time. The scheduling of physical education, Spanish, media, art and music education ensure the District meets its contractual obligation. Classroom teachers receive preparation time while students attend special classes.
As part of the adjustments for the next year, Spanish will be eliminated in Grades 1 and 2 and the fifth grade music program will be restructured. The restructuring includes requiring students to take instrumental music in the fifth grade and eliminating fifth grade vocal music. Instructional time for Spanish will be increased in grades 3 and 4.
In order to address the budgetary changes and ensure elementary teachers receive their contractual prep time, adjustments to the time allocations in vocal music, physical education, art, and media will be necessary. Special subjects may experience an increase or decrease in time, depending on the grade and subject area. For example, students in grades 3rd, 4th and 5th will experience a decrease in the weekly time allotment for physical education and art. As another example, time in media, vocal music and physical education will increase at the 1st and 2nd grade level.
While time allocations may change, the list below details the grade level offerings of special subjects for elementary students:
- Kindergarten – physical education and media
- First and Second Grades –Art, Media, Physical Education and Vocal Music
- Third and Fourth Grades – Spanish, Art, Media, Physical Education and Vocal Music
- Fifth Grade – Spanish, Art, Media, Physical Education, and Instrumental Music
Has the district considered lengthening the school day and reducing the school year?
Under a new state aid act, the District is unable to reduce the length of its school year to be less than what is offered in the 2009-2010 school year. The District currently provides 179 instructional days.
The school calendar is developed based on a number of parameters:
- The school year may not begin until after Labor Day under state law.
- School districts must follow the county-wide common calendar for winter and spring vacations as approved by the Oakland Intermediate School District. The five-year calendar is listed at this link.
- The remaining vacation dates must be negotiated with the Troy Education Association as part of its bargaining agreement.
Given the unusual ending date in the 2009-2010 school year (June 21), the District approached the TEA leadership about making changes to avoid ending on a Monday. This request was denied. In future years, the District will be required by law to maintain a minimal of 179 instructional days.
The state's decision to require school districts to maintain their existing calendar length is the result of a growing concern about the instructional impact of a shorter school year. Recent reports indicate that adding several minutes to each day and reducing days of instruction is impacting student achievement levels. A recent report on this issue is now posted on the District’s Web site at this link: http://www.troy.k12.mi.us/about/finance/report.pdf.
Why does the Troy School District need to make budget adjustments?
The state of Michigan is facing an unprecedented loss in revenues as a result of the current economy. Since 2002, the Troy School District has made more than $50 million in reductions. Despite these changes, a combination of increased costs and severe school funding cuts continues to impact the financial stability of the Troy School District. Without reductions, the Troy School District will experience an $11.7 million deficit next school year. It is clear that the ongoing school funding crisis will continue to permanently impact Michigan districts, and the Troy School District must make budget adjustments to protect the long-term stability and excellence for its students.
How were the adjustments developed?
In early December, the Troy School District hosted a series of focus groups involving parents, students, teachers, administrators, support staff and community members. Focus group participants were asked to respond to specific budget scenarios. Feedback from the groups was used to develop recommended adjustments. The District also studied reductions and revenue enhancements in other school communities to determine if they were applicable to the Troy community. The District continues to focus on areas where costs can be reduced without the complete elimination of a program or service. Efforts were also made to protect the classroom programs as much as possible.
What is the District’s overall plan to address the continued school funding crisis?
The Troy School District has projected continued school funding cuts over the next three years. As in the past, the necessary adjustments will come from a balance of reductions and use of the District’s Fund Equity. A budget forecast is available on the school district’s Web site.
What is the Fund Equity? How is it being used to address the school funding crisis?
Fund Equity represents undesignated funds that can be used to cover emergencies, such as this year’s unexpected midyear reductions. Without a Fund Equity, the District would have been forced to make classroom cuts more than four months into the school year. In addition, the Fund Equity is used to ensure the District does not need to borrow funds to meet its financial obligations prior to the receipt of state aid. Under the Troy School District’s four-year plan, the District’s Fund Equity will be maintained at approximately $9 million or the level needed to avoid borrowing to meet its payroll obligations.
What changes have already been made to address the school funding crisis?
Since 2002, the Troy School District has made more than $50 million in adjustments. The District has used a balance of reductions, revenue enhancements and use of its Fund Equity to address seven years of flat or reduced state funding. A list of the reductions and revenue enhancements is available on the Troy School District Web site.
What is the timeline for the implementation of these adjustments?
The District will continue to monitor changes in school funding and other assumptions that impact the overall budget development process. In addition, we will continue to work with our staff, community, parents, bargaining units and state lawmakers to address serious funding issues. By law, the Troy Board of Education must adopt a budget by June 30, 2010. Budget adjustments will become effective in the 2010-2011 budget year, which begins on July 1, 2010.
What administrative and non-instructional reductions have been made to date?
Over the past six years, the District has reduced its administrative staffing by more than 20 percent. This year, District administrators and non-represented staff received a 2.5 percent reduction in total compensation. In addition, the District has contracted its food service, transportation, custodial and grounds services. Recently, the District has been noted by several studies as having among the highest percentage of instructional expenditures in both Oakland County and the State of Michigan.
If 85 percent of your budget is committed to staffing costs, what changes have been made to control costs?
In addition to recent compensation and staffing reductions for administrative and non-union staff and the contracting of support services, the District has worked with its associations to control staffing costs. Recently negotiated agreements have been cost-neutral and included structural changes that address the growth of long-term costs for the District. The District’s agreement with its support personnel union will expire at the end of the school year. Agreements with the secretarial and teachers’ associations will expire prior to the start of the 2011-2012 school year. Given the increased severity of school funding cuts over the past year and the continued deterioration of the economy, the District made a request to leadership of the secretarial and teachers’ unions to consider reopening their current agreements to explore cost savings to protect classroom programs. This request has been denied by both union groups. Correspondence related to this request is available at this link
Why would the District continue to make large purchases, such as SmartBoards or new turf, when it is having to make changes to balance its budget?
The District continues to make capital improvements as a result of a 2004 bond issue. The District is not legally able to use bond funds for general operating expenses, such as salaries and benefits. Without the bond funds, the capital purchases would either not be possible or would have to be paid for through the general fund.
Where can I get additional information?
The Troy School District is also hosting a series of informational meetings on March 8, 10 and 15, 2010, from 6:30-8:00 p.m. at Athens High School. These meetings will feature small-group presentations on the District's current financial position and 2010-2011 budget adjustments.
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