Meeting Budget Challenges

-Questions & Answers-

R-7 community team recommends
additional $6 million in budget cuts
More than $19 million already cost-contained in 2010-11

   The Lee's Summit R-7 School District hosted an informational meeting on Dec. 15 focusing on proposed additional cost containment measures to help the R-7 School District address significant losses in state and local funding. Those attending the meeting had the opportunity to submit written feedback about the recommendations, which focus on the 2011-12 and 2012-13 school years.  
   Beginning Dec. 16, the cost-containment information is posted on the district's website, and citizens have the opportunity to provide feedback electronically. Staff members also have opportunities to submit electronic feedback. Comments submitted will be reviewed by R-7 administration and will be considered during development of the district's 2011-12 budget.
   In addition to the cost-containment recommendations, the Citizens' Advisory Committee recommended placement of an 89-cent operating levy on the Feb. 8, 2011, ballot. This recommendation was endorsed by the Board of Education in November. The levy issue is designed to make up for reductions in district revenue resulting from significant losses in state and local funding. Approval of the Feb. 8 levy would allow the district to avoid the vast majority of this additional cost containment.
   For more information about the levy issue select here.
   The Lee's Summit R-7 Citizens' Advisory Committee worked with leaders from each school's PTA throughout fall 2010 to examine solutions to the district's financial challenges. Lee's Summit R-7 has made dramatic budget cuts over the past three years as a result of reductions in state education funding and declining local revenue due to lowered property assessments.
   Beginning in 2008, the R-7 School District began extensive cost-containment efforts that totaled $1 million as part of Phase I cuts in 2008-09, $9.5 million during Phase II cost-containment in 2009-10 and $19.5 million during this year's Phase III efforts. The 2010-11 cost containment is approximately 12 percent of the budget. It is projected that R-7 will need to cut at least an additional $6 million over the next two years.
   The financial crisis is compounded by growing enrollments and rising costs in areas such as fuel, utilities and benefits, including state-mandated retirement contributions.
$19.5 million in budget cuts enacted for 2010-11
   Cost-containment measures enacted this school year include:

• Reductions in administrative, instruction and support staff positions totaling 103 employees.
• A district-wide salary freeze.
• The implementation of combination classrooms (two grade levels in one class) at the elementary level to equalize class sizes while reducing staff positions.
• Reductions to the elementary summer-school program.
• A teaching schedule change requiring high-school instructors to reduce their planning time and teach an additional course each day.
• Ongoing reductions of program, school and department budgets district-wide.
• Deferring of maintenance.

   During the time that the district has eliminated more than 100 staff positions to address funding reductions, it is also growing, gaining 262 students this fall with R-7 enrollment increasing more than 500 since 2007.
   The budget cuts have been designed to have the least possible impact on students while ensuring that the district remains fiscally solvent. With state projections showing even more significant losses in state funding in future school years, R-7 officials and the Citizens' Advisory Committee worked together to study the district's financial challenges throughout this fall.
   The R-7 Board of Education has already approved $19.6 million in cost containment for next year's budget but an additional $6 million in budget cuts will be needed to make up for further reductions in state funding and continuing losses in assessed value. Compounded with the $19.5 million already cost contained by the district during this school year, these additional budget cuts would have a more negative impact on students and would result in:

• Rising class sizes.
• Further elimination of school staff members.
• The possibility of additional combination classrooms at the elementary level.
• Reductions and/or elimination of some district programs for students, including both instructional and extra-curricular (sports and other activities).

   Despite the district's solid long-term financial planning and significant cost containment measures, the increasingly deep losses in funding have been especially challenging. R-7 has been recognized for its fiscal stewardship and remains below average in cost per pupil comparisons among Missouri large suburban districts and Jackson County districts.

Summary of 2011-12 and 2012-13 budget cuts of over $6 million
Instructional staffing and program reductions

• Parents As Teachers cuts to match losses in state funding (50 percent in 2011-12, 50 percent in 2012-13)
• Elementary strings adjusted from fourth-grade to sixth-grade start (phase in 2011-12 and 2012-13)
• Elementary band adjusted from fifth-grade to sixth-grade start in 2011-12
• Elementary AIM/ASPIRE gifted program reduced by two full-time teachers district-wide
• Elementary library summer program eliminated (June-July program)
• Elementary combination classes added, including four additional in 2011-12 and four in 2012-13, eliminating eight total elementary teaching positions
• Teaching and/or other instructional positions reduced by 20 total, including 10 in 2011-12 and 10 in 2012-13
• District curriculum specialists reduced by one full-time employee (instructional support for teachers)
• District field technology specialists reduced by one employee (technology support for teachers)
• District instructional technology specialists reduced by one employee (instructional technology support for teachers)
• Library-media secretaries reduced by five employees
• Extended contracts for positions such as at-risk, special-education, curriculum, instructional technology, music, guidance and library media reduced by 20 percent (reducing contract days beyond school year)
• Textbook updates/purchases deferred (one-time savings, may result in some outdated student resources)

Extra-curricular activities/athletics/other
staffing and program reductions and participation fees

• High-school extra-duty salaries, benefits and operating expenses reduced by 20 percent*
• Middle-school extra-duty salaries, benefits and operating expenses reduced by 20 percent*
• Elementary extra-duty salaries, benefits and operating expenses reduced by 20 percent*
• Middle-school sports/intramurals activity fee of $25/student with $100/family annual maximum for sports/music
• Middle-school music activity fee of $25/student with $100/family annual maximum for sports/music
• High-school sports activity fee of $50/student with $200/family annual maximum for sports/music
• High-school music activity fee of $50/student with $200/family annual maximum for sports/music

Support services and other district-wide reductions

• School healthroom clerk reductions at middle and high schools by three employees
• Secretarial/clerical staff reductions district-wide by three employees
• Nutrition Services administrative cost bill-back resulting in potential increase in school lunch/breakfast prices
• Maintenance/custodial/grounds staff reductions by two employees in 2011-12 and one in 2012-13
• Budgets (operations/activity/athletics/other) reduced district wide by additional 5 percent to 20 percent total cut
• Other: maintenance capital projects/repairs deferred (one-time savings and includes items such as roofing, paving, etc.); facilities/grounds community-use fee increase to actual cost; school bus purchases deferred (one-time savings).

*NOTE: R-7 programs included in the 20-percent cut (Extra-curricular #1, #2 and #3)
Elementary: after-/before-school choir, district-wide honors orchestra, environmental club, lead elementary librarian, science fair, student council, remedial reading coordinator, safety patrol, yearbook, Crossroads Learning Center and other activities/programs specific to individual schools.
Middle-school athletics: intramurals (football, basketball, track, volleyball), basketball, cross country, football, track, volleyball, wrestling.
Middle-school extra-curricular music/theatre: band, choir, orchestra, school play, talent show, awards assembly.
Middle-school other extra-curricular activities: cheerleading, homeroom/club program, lip sync club, Math Counts,  National Junior Honor Society, National Junior Art Honor Society, newspaper, robotics, alcohol/tobacco/other drugs prevention clubs such as SMART groups, Scholar Bowl, science fair, student council, yearbook.
High-school athletics (girls): basketball, cross country, golf, gymnastics, soccer, softball, swimming/diving, tennis, track, volleyball, athletic conditioning.
High-school athletics (boys): baseball, basketball, cross country, football, golf, soccer, swimming/diving, tennis, track, wrestling and athletic conditioning.
High-school extra-curricular music/theatre: choir, marching band, symphonic band, orchestra, drumline, jazz group/clubs, talent show, theatre, musical (including accompanist, box office, choreographer, costumer, lighting and sound, music director) improvisational groups, International Thespian Society.
High-school other extra-curricular activities: Air Force Junior ROTC; alcohol/tobacco/other drug prevention programs such as SMART groups; book club; broadcast journalism; candlelighting ceremony; cheerleading; chess club; community-service club; dance team; debate/forensics; dance team; DECA; dual-credit coordinator; environmental club; Family, Career and Community Leaders of America; Fine Arts Academy; flag team; fitness club; foreign exchange club; foreign language club and honor society (French, German, Spanish); Future Business Leaders of America; Future Educators of America; strategic gaming club; gate supervisor; graduation; Hall of Fame Committee (LSHS); Harmony Council; International Baccalaureate CAS and extended essay coordinator; International Club; junior and senior class sponsor; math club; National Art Honor Society; National Honor Society; national teacher certification; Missouri Scholars Academy; newspaper; Operation Impact; photography club; Project Graduation; prom; robotics; Students Against Destructive Decisions; science club; Skills USA; Special Olympics; Scholar Bowl; school fair coordinator; science club; Student Activity Advisory Council; student mentoring program; student senate; theatre; Trapmasters; yearbook; Youth in Government. 
Other: Cafeteria supervisor, department chair, lead teacher, lead counselor, literacy leader, Powergrade representative and school webmaster.

                                  
Questions and Answers about
R-7 Finances and Cost Containment

Q: What is the R-7 School District's annual budget? What's the breakdown for revenue sources and expenditures?
A: The R-7 School District budget for 2009-10 is $193,161,888 (excluding bond funds). Close to two-thirds of the district's revenue comes from local property taxes with the remainder from state funding and a small amount from the federal government. Education is known as a "people business," and approximately 74 percent of district expenditures are in its quality staff members' salaries and benefits. Charts include display breakdowns for revenue and expenditures.

Q: Is the R-7 School District audited by outside agencies and how does the district fare in these audits?
A: Lee's Summit R-7 continues to earn outstanding evaluations from annual audits performed by an outside auditing firm and conducted in accordance with state and federal regulations. An outside firm conducts a thorough on-site audit of the district's financial operations, examining all aspects of the school district's business operations. The most recent audit was conducted for the 2009-10 school year by Marr and Company, P.C., certified public accountants.  The extensive audit included endorsement for the district's financial procedures, including its compliance with state and federal laws and regulations and its maintenance of financial records. In addition, an R-7 Audit Review Committee, consisting of staff and community members, reviews this comprehensive document.

Q: What is the R-7 School District's cost per pupil? How does this compare to area and similar districts in the state?
A: Although considered one of the metro area's and the state's highest-achieving school districts, Lee's Summit R-7 operates at a cost per pupil which is below the average for area districts and very near the average for similar-sized suburban districts state-wide. Among the 12 Jackson County school districts, R-7's cost per pupil ranked seventh highest and was below average for all county districts. In a comparison among nine similar, suburban school districts across the state, Lee's Summit ranked sixth highest and was barely above the average for all nine.

Q: Has the national economic slowdown impacted R-7 enrollment growth?
A: Although R-7 growth has slowed recently due to declines in housing sales, the district continues to gain students. Current enrollment is more than 17,400 students, an increase of around 250 students over the previous school year. During the past two years combined, the district has gained close to 400 students. Enrollment projections indicate that the growth rate will increase in the next few years.

Q: What efforts have been made by the R-7 School District to find alternative methods to provide facilities for growth needs?
A: The R-7 School District has been a leader in seeking innovative and creative methods to finance new schools by using alternative funding methods from the private sector. In recent years, the school district has saved taxpayers close to $34 million through performance contracts, alternative resources, partnerships and the Missouri Department of Natural Resources low-interest energy-saving loans program. Examples of major school projects that resulted in millions of dollars in savings are Summit Technology Academy, R-7 Transportation and Facilities Offices, Great Beginnings Early Education Center and Longview Farm Elementary.

Q: What is the difference between a bond issue and a levy issue?
A: Money from voter-approved bond issues may be spent only on specified capital projects, such as new schools or renovations to existing schools. Bond money cannot be part of the operational budget. A school district’s operational budget pays for the day-to-day operation of the school district, including staff compensation and benefits, programs, textbooks and almost everything that affects a student’s daily experience. Levy funds are considered part of the operational budget and may be spent on re-occurring costs such as the hiring of additional teachers, employee compensation and benefits or the purchase of instructional supplies. By law, bond and levy funds cannot be co-mingled.
A bond issue can be a no-tax-increase question or it can increase the district’s debt service fund – which is part of the overall property-tax levy. The April 2010 bond issue did NOT increase taxes.

Q: Can the money in the bond issue be used to make up for revenue lost recently through state budget cuts?
A: No. Money in a voter-approved bond issue may only be used for the designated projects within the bond issue. Bond funds are restricted to capital improvements, such as new schools, school renovations, technology purchases and school buses, for example.

December 1, 2010 Lee's Summit R-7 press release about budget cuts

November 19, 2010 Lee's Summit R-7 press release about budget cuts

August 18, 2010 Lee's Summit R-7 press release about budget cuts

May 27, 2010 Lee's Summit R-7 press release about budget cuts

May 4, 2010, Lee's Summit R-7 press release about budget cuts

April 9, 2010, Lee's Summit R-7 press release about budget cuts

March 11, 2010 Lee's Summit R-7 press release about budget cuts

Contact information for Lee's Summit R-7
state senators and representatives

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