Welcome!

Before we get started, please: 1. Fill out and put on a name tag at your table. 2. Introduce yourself to others at your table. 3. Sign in on the blue Sign-In Sheet at your table.

Tonights Agenda
7:00 to 7:05 p.m. 7:05 to 7:10 p.m. 7:10 to 7:25 p.m. 7:25 to 7:27 p.m. 7:27 to 7:47 p.m. 7:47 to 7:50 p.m. 7:50 to 8:05 p.m. 8:05 to 8:45 p.m. 8:45 to 9:10 p.m. 9:10 to 9:15 p.m. Welcome Perception Activity State of the District Thought Break/Pair-Share Financial Challenges Thought Break/Pair-Share Options for the Future Work Activity on Options Groups Reporting Out Perception Activity Reveal and Adjournment

Perceptions

When you think about Pattonville, what three words do you think other people use to describe the district? What three words would you like for others to use to describe Pattonville? Write your words on the sheet provided and turn them in...youll see the results later.

Pattonvilles Journey
District Accreditation/
Achievement

Closing a School

Community challenges (Airport

buyout, demise of Northwest Plaza, etc.)

Planning with parents, students,

staff and community for change (Comprehensive School Improvement Plan or CSIP)

Pattonvilles Journey

Our Goals
Pattonvilles Comprehensive School Improvement Plan (CSIP)
Goal 1: Students demonstrate signicant improvement in their understanding and application of state academic standards. All students are procient in communication arts, math, science and social studies. All students are responsible citizens. Career education in an integral part of the educational program. Goal 2: School improvement teams (made up of half parents, half staff or community members) will develop plans consistent with the districts strategic plan. Goal 3: Pattonville will develop a plan that addresses critical issues. Plan addresses funding, enrollment, district stafng, safety and facilities. Plan creates opportunities that enhance student achievement and involvement for all students
while creating competitive athletic and activities programs. Pattonville will share information and develop and implement strategies regarding community. needs related to housing, mobility, resources and opportunities for students and families.

Where we are now

Missouri Distinction in Performance Award
(Among 5 percent of school districts out of nearly 500 in Missouri to earn this award every year it has been given)

Pattonville is the most diverse district in Missouri to achieve Distinction in Performance every year
(Our students represent 34 languages and 59 countries)

Pattonville High School ranked 19th out of 560 high schools in Missouri and in Top 10 percent in nation on U.S. News and World Reports 2013 Best High Schools List

Where we are now

High school state End of Course (EOC) exams among tops in St. Louis County Missouri Assessment Program (MAP) scores above state averages ACT score of 22.5 above state, national averages (with a record high of 76 percent of students taking the exam) Harvard pilot project grant will help prepare PHS students for high-demand elds (advanced manufacturing, health/ medical, information technology) Missouri Early Childhood Program of the Year - 2012

ties for students

Where we are now

Successful bond issues (requiring NO tax increase)
have kept schools in good repair and provided facilities that open doors of opportunity for our students

Additions/replacements in recent years: library,

science wing, stadium/eld, aquatic complex at Pattonville High School; classrooms in elementary schools; tracks at middle schools; remodeled industrial technology classes at middle schools

Infrastructure to support technology needs Schools aged 50-60 years old updated with new
roofs, windows, doors, safety enhancements

Where we are now

Technologically innovative
iLearn digital learning initiative provides Pattonville High
School students access to learning resources anytime, any place via one-to-one laptop program resources, textbooks, interactive discussions and videos anytime, anywhere could be accessed by students any time or anywhere 1,850 students with laptops accessed those 21,000+ modules nearly 1.7 million times

Course Moodles provide high school students access to High school teachers created over 21,000 modules that

Ratio of nearly one computer for every student district-

wide; Smartboards or digital video projectors attached to teacher computers in every classroom districts technology savings fund (Pattonville has used this savings fund to consistently replace technology since 2000)

iLearn laptops and other district technology purchased with

Where we are now

Continued improvements on state End of Course (EOC) high school exams
Percent Scoring Procient or Advanced (2013 data)

EOC Algebra* Biology English I English II Geometry Government

Change from Pattonville 2012 67% 88% 67% 79% 87% 73% +8 +17 +2 +1 +14 +1

State 57% 75% 60% 69% 60% 54%

Difference between state and PSD +10 +13 +7 +10 +27 +19

*Includes scores of Algebra students at Holman, Pattonville Heights and Remington; high school Algebra scores alone rose by 12% from the previous year.

Where we are now

Life-long experience in Pattonville has greatest impact on student achievement

+18%
Note: Chart is based on 2012 data Pattonville is the highest performing district in Missouri among districts of similar demographics (This includes achievement data at all levels - elementary, middle and high school).

Where we are now

Pattonville is a great place to live and learn.

Continued careful planning and decision-making will ensure the quality of our schools are protected long-term.

Thought break
2-Minute Pair and Share
Discuss your thoughts on presentation items among those at your table.

Financial Challenges
School Finance 101
School districts use two separate funding sources for different purposes

Missouri law and IRS regulations make it illegal for a school district to use debt service funds to pay for things in the operating budget. Debt service funds are locked and restricted for the sole purpose of paying for large capital projects that voters approve.

Pattonvilles nancial challenges are ONLY on the operating side.

Financial Challenges
School Finance 101
Pattonville is funded primarily by taxes paid on local homes and businesses
Missouri ranks 49th out of 50 states in percentage of state funding for education Pattonville receives $838 per student from the state

Local 86.7% Federal 3.6%

State Funding 8.5% County 1.3%

Financial Challenges
School Finance 101
85 cents out of every dollar pays salaries and benefits

Salaries and benets

Other

It is impossible to make deep cuts without severely impacting staff

Two-thirds (2/3) of salaries and benefits go to teachers

Teachers

Support Admin

Financial Challenges
Overcoming Challenges
Rampant rise in tax protests and shifting tax burden In Pattonville and across St. Louis County 1 out of every 2 businesses pay their
taxes under protest.

The system is overwhelmed. Only 3 hearing ofcers exist at the state level. Since 2005, $13.1 million has been refunded from Pattonville to
commercial taxpayers.

As businesses pay less, the tax burden shifts to homeowners.

Gross Property Tax Billings Residential Commercial/ Total Personal 2011 17,640,892 38,310,620 55,953,523 2006 14,852,696 39,017,087 53,871,789 2,788,196 (706,467) 2,081,734 Change 16% (2%) 4%

Recently Harrahs sold for $610 million, and they only want to pay taxes on $139 million.

Financial Challenges
Overcoming Challenges
Pattonville has weathered more than $34.7 million in nancial challenges over the past decade without seeking a tax increase. No other St. Louis County district funded similar to Pattonville can say the same thing.
Last 10 Years Rise in commercial property tax refunds Decreased 1,080 voluntary transfer (VICC) students (did reduce staff) Potential Harrahs/Hollywood loss from pending tax appeal Lost interest earnings Property values fall below 2003 levels Decline of Northwest Plaza Mall State aid shortfall Loss of revenue from airport expansion Total Budget Impact 13,100,000 7,560,000 5,000,000 3,000,000 2,700,000 1,200,000 1,147,000 1,000,000 $34,707,000

Financial Challenges
Overcoming Challenges
While many area districts experienced major increases in state funding and/or passed tax levies in the past 10 years, Pattonville operated using existing resources
Of these 15 districts, 12 passed tax rate
increases in the past decade
Wentzville Ft. Zumwalt Rockwood Hazelwood Francis Howell Ritenour Mehlville* Webster Kirkwood Lindbergh Fox Ladue Parkway Pattonville Clayton

State Voter Approved Formula Levy Increase Change $34,592,918 $17,512,830 $15,112,610 $11,237,987 $4,271,856 $4,229,351 $2,514,758 $1,682,155 $416,367 $372,868 $351,406 $324,574 $211,650 $62,437 ($31,916)

Besides Pattonville, only Rockwood and

Mehlville have not passed levy increases in the past 10 years, but Rockwood and Mehlville received large increases in state funding

*Mehlville asked for a tax levy increase but failed to gain voter approval.

Financial Challenges
Supply and Demand
Demand continues to increase (enrollment), but our supply of revenue (based on assessed value of property in the district) continues to decrease
Enrollment Assessed Value (Excludes Harrahs Under Protest)
5,700
1,500,000,000

5,600

1,400,000,000

5,500

1,300,000,000

5,400

1,200,000,000

5,300

2008

2009

2010

2011

2012

2013

2014

1,100,000,000

Financial Challenges
The Current Challenge
Despite years of proactive planning and cost reductions, the operating budget is struggling under the weight of the economic downturn
Four factors impacting the operating budget Signicant decreases in assessed value of property (homes and businesses) in the district

Successful tax appeals by large commercial property owners, which have resulted in
millions of dollars in lost revenue

A casino valuation debate now in the hands of the state tax commission, which has $5
million of Pattonvilles revenue at stake

The state underfunding its scal responsibilities to Pattonville by more than $1.1 million
These are unprecedented, historical challenges that threaten Pattonvilles ability to maintain the excellence in academic programming and quality services weve come to expect.

Financial Challenges
Reducing costs to address lower revenue
Pattonville has reduced operating costs by $8.1 million since 2007
From 2007-2010 reduced 30 positions or $2.7 million Budget reductions 2011-2012 $3 million Budget reductions 2013 $2.4 million

$1.35 million in stafng reductions $300,000 in summer school costs $250,000 in liability/workers compensation
savings $300,000 in departmental savings $300,000 in utility savings (made possible by lighting replacements projects included in the 2010 zero tax rate increase bond issue) $100,000 in school budget reductions $150,000 in other efciencies $200,000 in transportation savings

$700,000 with closing of Briar Crest

Elementary $700,000 in stafng reductions $560,000 in reduced textbook costs Other savings from administrative salary freezes and reducing teacher and support staff movement on the salary schedule by 40 percent (net increase of 0 percent in salaries and benets for 2013-2014)

Financial Challenges
What does this mean?
Solutions need to be identified

The advanced planning Pattonville conducted 5-7 years ago has

helped us weather the storm thus far over the last 10 years

Pattonville has worked through $34.7 million in revenue challenges Since 2008-09 the operating budget has grown just 0.5% on average A survey of 15 area districts shows that Pattonville is the only area
district to work through the nancial challenges of the last 10 years without help from the state or asking voters for a tax increase

Financial Challenges
What does this mean?
Solutions need to be identified (Potentially $10 million).

Future cuts will have signicant impacts on stafng (teachers, etc.), class
size, transportation and programs for students through:

Need to address another $4 to $5 million shortfall by 2014-2015

- More cuts to the operating budget - Increased revenue (via increased property values or tax levy increase) - Or combination of both (cuts and increased revenue)

Negative outcome on the Harrahs appeal could widen our decit by as

much as $5 million

Thought break
2-Minute Pair and Share
Discuss your thoughts on presentation items among those at your table.

Community Opinion
Prioritizing District Needs
High/Top Low Priority Priority (5-7) (1-2) Keeping teacher and staff salaries competitive Keeping supportive positions like reading and gifted teachers Maintaining the current number of teaching positions Continuing elective courses at the high school Maintaining current class sizes Maintaining the current level of support staff positions such as secretaries, cooks or custodians Maintaining the current after-school sports and activities Maintaining the districts early childhood program Maintaining the current bus routes and schedules Continuing elective courses in the middle schools 87.4% 85% 82.4% 79.4% 73.9% 73.9% 72.9% 72.3% 70.5% 69.1% 6.2% 6.2% 5% 5% 8% 7.4% 11.2% 16.2% 13% 9.6% 13.4% Continuing to support special education programs for disabled students 86.2%

UnicomARC conducted 500 telephone interviews with registered voters in June 2013; survey participants were chosen at random, however more than 80% of respondents had no children under the age of 18 living in their household.

Options for the future

Option 1- Cut our way to a balanced budget
Possible cuts without a change in revenue: Reduce 80 -100 positions = Fewer teachers/support staff and higher class sizes Eliminate transportation less than 3 miles (state minimum) Cease all textbook purchasing Extracurricular programs become fee-based to participate
Notes for Option 1 Planning is based on a negative casino outcome, resulting in our budget decit growing to $10 million. $10 million is 12.5% of Pattonvilles operating budget, and 85% of our budget is spent on people (teachers and other staff).

Pattonville has already reduced its budget by $8.1 million since 2007. This included closing a school, freezing administrative salaries and reducing step increases to teachers and support staff by 40%.

Options for the future

Option 2 (Flat) - $0.8998 tax increase
Increase Total Comm. & Residential (Ballot) Personal $0.8998 $0.8998 $0.8998 Resident Impact Per month $125,000 home $17.81 Rate vs Rate vs STL North Avg. Avg. -$0.23 $0.46

Notes for Option 2

In St. Louis County, property taxes are set according to the class of property: residential, commercial, personal property or agricultural. If approved, all classes of property would be assessed the increase of $0.8998. No changes would take affect until the fall of 2014. If approved, the tax increase would enable Pattonville to protect the quality of the district by maintaining its current stafng and educational programming for students.

Options for the future

Increase Total Comm. & Residential (Ballot) Personal $1.1494 $1.1494 $0.3462

Option 3(Equalize) - Increases vary by property class

Resident Impact Per month Rate vs Rate vs STL $125,000 home North Avg. Avg. $6.85 -$0.78 -$0.09

Notes for Option 3

In St. Louis County, property taxes are set according to the class of property: residential, commercial, personal property or agricultural. Voters would have to approve a $1.149 increase for all classes, however the district would commit to voluntarily rolling back its residential rate, so residential taxpayers would only pay $0.3462 for as many years as possible. Pattonville has a solid history of voluntarily rolling back its property taxes when possible. No changes would take affect until the fall of 2014. If approved, the tax increase would enable Pattonville to protect the quality of the district by maintaining its current stafng and educational programming for students.

Options for the future

Option 4 ($1million cut)- Increases vary by property class
Increase Total Comm. & Residential (Ballot) Personal $0.9889

Resident Impact Per month $125,000 home $8.70 Rate vs Rate vs STL North Avg. Avg. -$0.69 $0.00

$0.9889

$0.4397

Notes for Option 4

In St. Louis County, property taxes are set according to the class of property: residential, commercial, personal property or agricultural. Pattonville will make at least $1 million in additional cuts. Voters would have to approve a $0.9889 increase for all classes, however the district would commit to voluntarily rolling back its residential rate, so residential taxpayers would only pay $0.4397 for as many years as possible. Pattonville has a solid history of voluntarily rolling back its property taxes when possible. No changes would take affect until the fall of 2014. If approved, the tax increase would enable Pattonville to protect the quality of the district by maintaining its current stafng and educational programming for students.

Options for the future

Possible Operating Tax Levy Increase - Comparison Overview
Increase Total Comm. & Residential (Ballot) Personal Option 2 Flat Option 3 Equalize $0.8998 $1.1494 $0.8998 $1.1494 $0.9889 $0.8998 $0.3462 $0.4397 Resident Impact Per month Rate vs Rate vs $125,000 North Avg. STL Avg. home $17.81 $6.85 $8.70 -$0.23 -$0.78 -$0.69 $0.46 -$0.09 $0.00

Option 4 $0.9889 $1 million cut

Options 2 and 3 would generate the same amount of additional revenue for the district.

Options for the future

How do we keep Pattonville strong?
Pattonville employs nearly 1,000 people, and we are one of the largest
employers in our community. We believe our teachers and staff are the most talented in the state, and our student achievement supports that statement. outstanding staff is what makes Pattonville ..... Pattonville.

A supportive and caring community, exceptional students and our Massive budget reductions are possible, but there will be an impact on

students and the community. Many of our stafng and program advantages over other North St. Louis County and St. Charles County districts will no longer exist. million budget shortfall. The choice rests with our residents.

An increase in the operating tax levy can overcome the potential $10

Work Activity
Instructions
Discuss merits of different options
1. Select two positions: a recorder and spokesperson 2. Write your table number on the green worksheet 3. Review the options presented and discuss pros and cons of each 4. As a group, come to consensus and record your preference on the green worksheet 5. Briey report out to group 6. Turn in worksheet