Questions and Answers
2009-2010 Budget Process
April 17, 2009

How are the budget reductions developed by the District?
The District is looking at every possible avenue where costs can be reduced in order to protect its classroom programs and support its educational mission. The District received input through its Web site and community and staff meetings regarding possible reductions. The District has also reviewed reductions that have been successfully implemented in other neighboring school districts.

What is the current status of the budget?
The Board of Education continues to review and discuss proposals as part of its 2009-2010 budget development process. The District has identified $3.7 million in proposed reductions the next school year. In addition, the District is looking at cost reductions in the areas of custodial, grounds, food service and transportation, including seeking proposals from companies to provide the service.
Currently, the District is facing a nearly $8 million deficit for the current school year. The budget is scheduled to be considered by the Board of Education at its June meeting. If approved, the budget changes will go into effect on July 1, 2009.

What is the impact/status of specific reductions related to…

• Media Specialists – At the elementary level, the proposed reduction is to reduce the number of specialists from 12 to eight positions. The reduction will not impact the amount of structured media center time elementary students currently experience in schools. In addition, it is estimated that the reduction will still allow the specialists a block of time to work with individual students or groups of students. At the high school level, the reductions will reduce one specialist position from a current staffing ratio of two specialists and a support position. There will not be any layoffs as a result of this reduction.
• Pay to Participate – After reviewing rates charged by other schools, the District has developed a fee structure that is comparable among Oakland County districts. Under the formula, high school parents would pay $100 per athlete annually and middle school families will be charged $50 annually for each athlete. Please note this is not a by-sport charge. For instance, the $100 annual fee for high school students would cover the entire year, regardless of the number of teams the student joins during the year. The fee for non-curricular clubs at the middle and high school will be $50 annually. There will not be any fees for co-curricular clubs. The revenue raised through Pay to Participate will offset approximately $300,000 of the approximately $2 million in costs related to athletics and clubs. Reduced rates will apply to students who are on free and reduced lunch programs.
• Requesting proposals for services related to custodial, transportation, food service and grounds – The Troy School District continues to explore possible cost savings in these areas. The District is working with the association representing the current employees to identify savings that would avoid any possible change.
  Proposals for each of these services have been recently received by the District. The proposal for transportation services has been analyzed to determine the possible level of savings through a change in services. The analysis (posted on the District Web site) demonstrates a savings of between $1.2 million to $1.8 million over a three year period. In addition, the District would realize an additional savings of at least $7.4 million over six years by not assuming bus replacement costs. A review of remaining service areas will be posted on our Web site as soon as they are available.
  If a change is made, the District requires companies providing the service to strongly consider retaining the current employees. Companies bidding for transportation services indicated they would retain employees at their current wages or an increased rate. The benefit packages offered by both companies are currently being analyzed to determine changes in coverage. A complete timeline is available on the District Web site.

What changes in employee compensation have been made this year?
The District continues to collaborate with its associations and employees to address changes in compensation. The District reached agreements this year with the teachers’ and secretarial associations that included significant structural changes in compensation packages that offset increased costs in future years. Also this year, administrative staff, employees not represented by a union and support staff did not receive a wage increase. Central office administration also voluntarily agreed to begin contributing to monthly insurance premiums. Furthermore, Superintendent Dr. Barbara Fowler voluntarily reduced her salary by five percent.

Has the district considered lengthening the school day and reducing the school year?
A reduction in the days of instruction for Troy students would have a corresponding impact on the quality of instructional programs. 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.

Can the District use stimulus funding to offset its financial issues?
The Troy School District is scheduled to receive stimulus funding through the Individuals with Disabilities Act (IDEA). The District has received information that the federal stimulus package can only be used to fund new initiatives that follow restrictions of the act. Professional organizations, such as the Michigan School of Business Officials, have indicated that funds cannot be used to address financial issues related to school funding shortfalls. For more information, please see this link.

I have heard that the District contracts with retired employees? How does that impact the budget?
Under a budget reduction proposal two years ago, the District began contracting with retired employees. The contracting program saves the District retirement and benefit costs associated with the positions – or nearly 40 percent of the cost related to the staff member. The program allows the District to realize significant savings without impacting any program or service in our schools. Currently, the District realizes a savings of approximately $500,000 annually. The program saves the Troy School District nearly $500,000 in retirement and benefit costs. This is a process that has been used successfully to reduce costs in other school districts, private industry, and the State of Michigan.

Where can I get additional information?
The Troy School District will update its Web site on a regular basis with information related to the 2009-2010 budget. The direct link to the site is: http://www.troy.k12.mi.us/about/finance/index.htm.