Guest Speaker:   Greg Wood, Chief Budget Officer

Panelists:

Amy Dresser-Held, Chief Executive Officer

Marcia Haskins, Interim Principal

Monica Ianessa, Assistant Principal; Director of Student Services & Attendance

Kevin Olson, Finance Manager

Karen Perkins, Chair, Board of Trustees and Science Teacher

Susan Frank, Secretary, Board of Trustees, Parent

The purpose of the meeting was to provide an opportunity for parents to better understand the Pali’s financial landscape and to give input into funding priorities. 

·         What is being done to keep budget cuts away from the classroom?

·         How much of a financial reserve does Pali have?

·         Will class sizes increase?

·         What is the outlook for state funding over the next 3-5 years?

Greg Wood began his power point presentation,  “Palisades High School State of The Budget,” by reminding the audience of Pali High’s Mission Statement:

“To educate our diverse students by developing their skills and talents to help them make positive contributions to our global society.”

The overview of the meeting was to share information, identify the budget process and solicit ideas. They have already held meetings with all employees, including teachers and staff.  The Board had a special training on the budget.  All stakeholders are involved in the process.

As a follow up to the meeting, Wood is hoping to quantify possible savings, develop a menu of all savings, and prioritize ways to balance the budget and factor savings into the 2010-2011 budget.

Mr. Wood noted that as of 2009, Pali had designated $1.6 million for lifetime benefits, for which a trust fund will be set up.  As of December 31, 2009, Pali began purchasing its own employee benefits.

The State of California’s current budget issues include:

·         $19 billion education budget deficit at the state level

·         LAUSD is currently projecting $600 million budget deficit

·         Numerous school districts in budget reduction process

·         Other state funded institutions are in similar budget reduction modes (City of Los Angeles – work furloughs and lay-offs).

75% of Pali’s total revenue comes from State funding sources.

Currently, 80% of Pali’s budget is allocated to employee costs (salaries and benefits). 4% is attributed to supplies, instructional materials, etc.  Those costs have been cut over the past three years and are not sustainable going forward. 

Based upon 2009-10 current budget projections, the 2010-11 Pali’s budget shortfall will approximate $1.1 million.

How can Pali reduce a $1.1 million budget deficit? 

Increase revenue sources:

·         Increase ADA (average daily attendance – i.e. number of students)

·         Fundraising

·         Grants

·         Federal Stimulus: Race to the top  (California is currently not eligible for these funds)

·         Other ideas?

Decrease expenditures by:

·         Reduce Cafeteria deficit

·         Reduce operating costs (capital leases, LAUSD services, etc.)

·         Reduce salaries and benefits (all forms of compensation/benefits)

·         Other ideas?

Unknowns:

·         Transportation issues with LAUSD

·         Special Education issues with LAUSD (LAUSD looking to increase)

·         Facility use fees with LAUSD (currently capped at 3% by State law but could be assessed at a per-square-foot basis)

·         Health Care Costs

·         Retiree benefits

Process:

·         Stakeholder input (includes staff, students, parents and community)

·         Administrative review

·         Union negotiations re: salary/benefits

·         Board Budget and Finance Committee (this is a very strong committee that is working diligently throughout the process)

·         Budget process: March 2010 through June 2010

·         Board of Trustees approval, June 2010

Sources of Stakeholder input:

Link on Pali High website (www.palihigh.org).  Click on “About Pali” then  “Budget Suggestions.”  You will find the Budget Presentation discussed here, as well as the Budget Suggestion Box Feedback form.  You can either fill it out on line or turn in a hard copy into the main office.  The Budget Finance Committee will be using these suggestions to facilitate budget priorities.

Questions and Discussion with the Panel:

Transportation Update – Amy Dresser-Held

In talks with the LAUSD Superintendent, an agreement was reached regarding transportation.  The Magnet school will be phased out over three years and students currently attending Pali will be continue with the busing arrangements, with the following payments to Pali from LAUSD:

·         1st year:           $600,000

·         2^nd year:           $600,000

·         3^rd year:           $300,000

·         4^th year:           -0-

Incoming 9^th grade families will have to use MTA or other parent-funded transportation.  We will need parent support to keep the school whole.  Parents will need to commit to getting their students to Pali.  We have more than enough applicants but the key is to maintain our level of diversity.

How will the phasing out of the Magnet effect Pali?

Paul Revere 8^th graders will have the option of attending the new Magnet at University High School or Pali High.  The Magnet program will be phased out but the Charter remains.  Honors and AP Classes are offered school wide, not just through the Magnet. 

Do you foresee more students coming in through the lottery?

Public schools are open to all in California.  Area residents have first preference.  Revere students are next, and then the lottery is open.  Revere’s classes are expanding every year, so it is unlikely that there will be many more slots open for the lottery. 

Monica Ianessa stated that not having a Magnet would increase Charter seats.  There will be fewer obstacles for Revere students.

How many employees were affected by the RIF (Reduction in Force) notices?  Under the Charter, certificated employees (teachers, nurses, etc.) had to be notified of possible layoffs by March 15 or no reductions could be made if they were subsequently deemed necessary.  Accordingly, 18 – 20 RIFs were issued.  Non-certificated employees must be notified 45 days prior to the end of the school year.  With the settling of the transportation issues, reductions may not be necessary.

Do we use Sponsorship as a fundraising tool?

Pali has had some sponsorship, e.g. naming of a building.  There are no specific provisions in the Charter that prohibit sponsorship.  LAUSD may have some restrictions.

Ms. Ianessa announced that next year is Pali’s 50^th anniversary = a “golden” opportunity to solicit alumni support and create other fundraising opportunities.

Can donations be earmarked?

Yes, individuals can donate and earmark toward specific projects, although 90% of donations are generally given to the General Fund.  To date, the Pali Fund has raised only $85,000.  Community support is desperately needed.  The Booster Club raises about $300,000 annually but those funds are considered supplemental.

Will Pali’s class size increase?  Currently, Pali’s class sizes average between 35-37 students.  Without parent support, we will need to increase the ADA.  Ms. Ianessa noted that we will enroll more initially, as there is an attrition rate, especially without transportation. 

Will staff salaries be reduced?  We are currently in negotiations with the UTLA (teacher’s union).  Pali’s Budget Committee is made up of 51% faculty.  The teachers are coming up with solutions, i.e. furloughs.  Currently, there are no salary cuts.  We have made some adjustments, however, like reducing summer programs. 

If staff reductions become necessary, can we eliminate positions based on merit rather than seniority?  We are operating under the current contract stipulates cuts must be made based on seniority.  The Administration is looking at that possibly renegotiating that next year.  Marcia Haskin stated that California is not eligible for the Race to the Top dollars, as we are not hooked into evaluations based on test score data.  The Union is considering whether or not the students have improved.

Can Pali participate in the Public School Choices program?  Under this program, LAUSD will provide transportation for 125 students, however, the caveat is, and these students must come from under-performing schools.  This would eliminate students from Paul Revere.

A parent spoke from the floor and asked if the Charter permitted Pali to have a blue ribbon committee made up of parents and professionals in the community to fund raise.  Amy Dresser-Held answered that Pali is governed here and we are absolutely able to do so.  The Board of Trustees is involved in fundraising.  Part of the Executive Director’s job is to raise money. 

Next Meeting: 

Thursday, April 29, 2010 – 6:30 to 8:00 p.m.

PAC encourages parents to get involved in PCHS by joining one of the parent organizations or a Board Committee.  PAC would welcome new members to our CORE Leadership.  Please speak to one of the current members or email us at elliepac@gmail.com to learn more.