Budget Questions and Responses

regarding Town Hall Presentations of March 3rd & 5th, 2009

The following document includes questions received from the community as a result of the Townhall Presentation held on March 3rd and 5th regarding the Ann Arbor Public Schools 2009/10 Budget. The responses to the questions from AAPS Administration are in bold. The questions below are posted as they were received and have not been edited.

1)  On the PPT slides, please provide the big picture for Ann Arbor by referencing what the estimated # of students in private schools (i.e., what % of students are in AAPS).  Also, what are the main reasons why AAPS is declining (e.g., is it demographics and/or migration to private schools)?
A: Although we do not have the exact number of Ann Arbor students that are attending private schools, the trend showing the number of students that leave AAPS for private schools is just about equal to the number of students that return to AAPS from private schools annually. Statewide trends also suggest that the declining enrollment is due to families moving out of state mainly for economic reasons.

2)  The two slides about Hold Harmless and 20J are pretty hard to understand.  Does local 4.27 mills refer to taxes that Ann Arbor residents pay?
A: The 4.27 mills refer to the taxes that are assessed to Ann Arbor residents.  This provides funding for the $1,234 per pupil portion of our funding allowance, referred to as “hold harmless,”  which was established with the passage of Proposal A.  This is assessed on homestead properties only. 

3)  Is there somewhere in the slides showing what amount of taxes are paid towards AAPS by Ann Arbor residents?  If not, can you please add it, making it explicit, including what % of Ann Arbor taxes goes to AAPS.
A. The AAPS foundation allowance for 2008-09 is $9,723 per student and of that amount, approximately 81.1% can be attributed to taxes levied on the residents and businesses of Ann Arbor.

4)  What is the implication (main point) of the slide called State Economy:  Total Membership Pupil Counts showing an upside-down U curve?
A: This shows the decline in total student membership in the state of Michigan.  Declining student numbers mean reduced revenues for the individual school districts. Total statewide membership for fiscal year 2009-10 is projected to be below fiscal year 1994-95 levels.

5)  What is the definition of Instructional Support (e.g., as shown on the slide w/ the pie chart & Budget Breakdown? What does that include that is different from Teacher Costs?
A: Instructional Support- Those services which provide administrative, technical and logistical support to facilitate and enhance instruction specifically in the classroom,  i.e. media services, technology assisted instruction, etc.

6)  18% of the budget for Administration and Support seems high.  What is the average for MI or other comparable metric?  Is there any concern by AAPS administration that this % should be lower? 
A. In fiscal year 2006-07 the AAPS spent $1,202 per pupil on expenditures related to business and administration. The state average for 2006-07 was $1,140 per pupil. AAPS was ranked 371 out of  771 school districts in the state of Michigan based on the amount spent per pupil for business and administration.   As a district, we will continue to look for ways to reduce our costs and increase our efficiency in all areas.

7)  What is the definition of Added Needs and also Support Services (on the slide showing Budget by Function)? 
A. Added Needs- The classroom cost of added needs instructional programs offered by the school. This includes special education, compensatory education, and vocational education.
Support Services- Those services which provide administrative, technical and logistical support to facilitate and enhance instruction. These services include guidance, health, psychological, speech and auditory, teacher consultants and social work.

8)  Is capital improvements (e.g., from millage that resulted in recent upgrades) included in the budget shown in the slides or is that a separate fund? 
A: The budget shown in the presentation reflects the general fund expenditures only. The capital improvements that resulted from the 2004 bond proceeds and the 2005 sinking fund millage are tracked in separate capital funds.

9)  Can you provide more details for the bulleted items in the list of what has been done to increase efficiency and reduce costs, e.g., how were services consolidated at the County Level.
A. Consolidation of services at the state and/or county level continues to be a focal point for the AAPS. Examples of services that have been consolidated are: substitute teachers, sharing of software costs, bus purchases, and bus parts purchases. The County produces a report each year on consolidated services that can be obtained through the WISD.

10)  Can you add some estimated costs of each of the Opportunities for Students, or at least provide a total estimated cost? 
A. The incremental operating cost to the AAPS for opening Skyline H.S. is projected to be approximately $3 million for the first year. The projected cost of the world language program through a partnership with the University of Michigan is approximately $60 thousand. The cost of replacing the technology and replacing the curriculum materials is approximately $5.6 and $1.3 million respectively. The technology replacement was funded through the 2004 bond program and the curriculum materials were funded through our capital needs fund. 

11)  As a parent of two children who are not naturally straight A students but tend to struggle in school, I am really interested in knowing what efforts are being taken to evaluate teachers, coach/help improve teachers who are less than effective, and consider removing teachers who are not able to improve their effectiveness.  Ineffective teachers (I am convinced exist in AAPS in far too many #s) are a drag on (waste of) scarce resources. 
A.  Teachers are evaluated annually by the building principal to ensure they meet the standards set by the National Board for Teaching Standards.  We train and retrain our administrative staff in effective evaluation techniques and hold them accountable across all levels.

Principals are held to a high standard for supervising and evaluating all staff in their buildings.  Administrative supervision and support is provided for principals who are evaluating ineffective teachers.  Several meetings and classroom visits are made in an effort to help/coach the teacher(s).  The goal is to tie all evaluations closer to evidence achievement for all students.

The District also has an active evaluation support team consisting of building administrators and central office staff which meets regularly and provides expertise and support to administrators involved in the teacher evaluation process.  This team was recognized in 2008 by the Michigan Association of School Personnel Administrators (MASPA) with their Best Practices in Human Resources Award. All teachers receive a minimum of 34 hours of professional development per year. Teachers who need extra support can be placed on Individual Development Plans.

12)  Is it realistic to expect 200 new students to enter AAPS?
A. The expectation to increase enrollment by 200 new students is over a three year period. A portion of the strategic plan that was developed in 2007 calls for increased marketing of the current programs in an effort to reach the approximately 1,200 school age children that reside within the AAPS boundaries but are not currently enrolled in our schools. We have also created new programs such as our “Options Program” specifically designed to attract new students to the district.

13)  Please add more details for the bullets listed on the slide about ensuring adequate resources.
A. To ensure adequate resources, adjustments must be made on both the revenue and the expenditure side of the equation.

On the revenue side we must lobby the state to make much needed changes in the way schools are funded. Proposal A changed the funding base from being predominantly generated from the local level to the state level. It was an attempt to “level” the playing field for funding education state wide. The state has to come up with an equitable and adequate way to fund education in the state of Michigan. We must also make every effort to not just maintain our current enrollment level but to increase our student enrollment by aggressively pursuing the 1,200 school age children that live within our boundaries but are not currently enrolled in our schools.

On the expenditure side we will continue our diligence as it pertains to cost containment and consolidation of services.

14)  Please explain whether millage resolution means higher taxes.  If this is the case, what are the current tax rates earmarked for AAPS and how will this increase; will this be a limited number of years of tax increase, e.g., will it still be in place if the economy improves?
A. The total millage for AAPS is currently 25.5152 mills.  A millage resolution could potentially mean higher taxes if the taxable value of the property in Ann Arbor decreases instead of increases as it has done in the past.  Two of the millage amounts that are included in the 25.5152 mills are dependent on the taxable value and if it decreases, then the millage could potentially increase. 

15)  How will you improve services and actual attendance for struggling students, particularly on the ASD? Will you be adding ABA services for these children?
A. We have worked hard to improve the outcomes for students with diverse abilities, including those students on the autism spectrum. After completing a comprehensive program review, we established a district-wide team to support these students. The team has experience and expertise with a variety of approaches including ABA. We will be supporting ASD students with programs and services at the secondary level beginning in the fall of 2009.  Our approach has been to build capacity from within, and to also bring in consultants to provide in-service training.  We will continue to provide extensive, job-embedded professional development to the people closest to the students, which are teachers and teacher assistants, as well as the district wide-team.  We believe this approach will sustain the progress we have made thus far in serving these children.

16)  The budget shows no increase in contract salaries.  How can the district keep highly educated and qualified staff if it is not going to pay them more money?
A.  The proposed budget reflects only known increases as it pertains to salaries.  As contracts are settled the budget is adjusted accordingly. 

17) Is there any plan to reduce staffing in administration?
A. The AAPS administration reviews all areas of the budget to find efficiencies throughout the year as well as during the formal budget preparation cycle. This would include staff reductions in administration. 

18)  What is the expense for running Skyline?  There is a full staff of administrators and custodians, along with athletic staff and there are only about 400 students.  What other schools have so few students and so much staffing?
A.  The initial operational startup cost for Skyline is projected to be  approximately $3 million dollars. This includes many one-time expenditures. The first year of operation included the ninth grade only. Skyline will grow a grade each year and will be fully operational, grades 9-12, by fiscal year 2011-12. Staff will be added each year to accommodate the additional grades. The majority of the new staff added to Skyline each year will be transferred from within the district thus lowering the annual incremental cost each year to the district.