/

279-3626

May 9, 2005

Mr. Michael L. Subin

Chair, Montgomery County Council Education Committee
Stella B. Werner Council Office Building
100 Maryland Avenue
Rockville, Maryland 20850

Dear Mr. Subin:

The enclosed Question and Answer document provides answers to the written questions
submitted by Council members Praisner and Denis during last week's Education Committee
meeting regarding the Technology for Curriculum Mastery initiative.

As you know, the strategic reform initiatives under way in the Montgomery County Public
Schools (MCPS) during the last five years have focused on transforming the school system's
ability to implement a highly rigorous curriculum, grade-level student assessments, continuous
professional growth for teachers and principals, and greater communication with parents. A
critical initiative in this transformation is devoted to integrating new forms of classroom level
technology and assessments to improve, support, and simplify the work of teachers and
principals in diagnosing the academic progress of students. This initiative is called Technology
for Curriculum Mastery.

The Technology for Curriculum Mastery initiative is fully integrated with other MCPS strategic
initiatives and reforms of the past five years. We continue to be focused on providing effective
supports for teachers and principals to improve teaching and learning. The new technology­
enhanced assessments are designed to support and simplify the work of teachers and principals in
diagnosing and monitoring students' academic progress. This automated assessment initiative
replaces long-standing paper-based assessments with intuitive technology used to monitor and
analyze student performance. This is consistent with the school system's strategic plan and
accountability framework. The systemwide introduction of the technology-enhanced
.as~essments, including the use of handheld devices to record and review data, is a key feature of
-the school system's strategic plan for all elementary schools.
Mr. Michael Subin 2 May 9,2005

If you have any additional questions, please contact me or Mr. John Q. Porter, deputy
superintendent for strategic technologies and accountability, at 301-279-3581.

Sincerely,

Larry A. Bowers
Chief Operating Officer

LAB:csa

Enclosure

Copy to:
Members of the Board of Education
Members of the County Council
Dr. Weast
Executive Staff
V

r Questions from the Montgomery County Public Schools Budget Worksession

Technology for Curriculum Mastery (TCM) Initiative

• Mrs. Praisner asked MCPS staff to provide information on the long-term costs of the rCM
initiative. Mr. Denis-I would like to get a better handle on the total cost ofthis program. I
understand that there are expenditures of $1.2 million proposed for FY05 and the Board's
FY06 request assumes another $2.4 million. Is this the total funds associated with the
program? What about beyond FY06? Do these dollars include training? Maintenance?
Replacement Costs?

The long-term costs for the TCM initiative are associated with the per student licensing fees
for the assessments; training for teachers new to Montgomery County Public Schools
(MCPS) and teachers changing grade levels; and cyclical hardware (handheld devices)
replacement. The five key assessments of tPe TCM initiative are Running Records,
Measures of Academic Progress-Reading (MAP-R), the Dynamic Indicators of Basic Early
Literacy Skills (DffiELS), Stanford Diagnostic Reading Test (SDRT), and Reading 3D.
Descriptions of these assessments are attached. The current cost for FY 2007 and beyond is
approximately $1,711,974 per year. Since recurring per student licensing fees are required
for paper-based versions of the assessments, these costs are not entirely new. In addition, the
staff training is being incorporated into the overall professional development (grade-level)
plan. These costs for FY 2007 are lower than the FY 2006 costs because MCPS will pay a
further reduced per student licensing fee for handheld-based assessments and anticipates a
reduction in staff training costs.

• Why was the TCMproject accelerated before any formal evaluation was done? To date, only
anecdotal information has been offered Our understanding is that the program was to be
tested on a pilot basis during SY04-05. Mr. Porter indicated that the program was indeed
still in a pilot phase.

After evaluating various forms of classroom level technology and assessments to improve,
support, and simplify the work of teachers and principals in diagnosing the academic
progress of students, MCPS determined in August 2003 that the product from Wireless
Generation provided an appropriately sophisticated and mature product. Their mCLASS­
based products used the reading assessments (Running Records and DffiELS) that are
already administered by MCPS and had an established and proven track record. MCPS
technology and curriculum staff conducted hands-on product evaluations and reference
checks. Once the mCLASS handheld assessments were judged to be appropriate options,
MCPS initiated steps to field-test the technology-enhanced assessments in eight schools
during spring 2004.

During the field test, staff evaluated various factors including ease of use for teachers in a
classroom setting, usability of the Web sites for accessing data, and the amount and type of
information available to teachers and administrators. Based on the overwhelming positive
response to the use of the technology-enhanced assessments from teachers and
administrators, observations of teachers using the product, and evidence of use of the Web
 2

pages, the field test was expanded. In the fall 2004, the use of mCLASS: DIBELS was
deployed in 16 elementary schools, and the mCLASS: Reading was implemented in 19
elementary schools. Also in fall 2004, MAP-R was implemented in all elementary schools
for assessing reading in Grades 3-5. Between January and May 2005, mCLASS: Reading is
being deployed to the remaining elementary schools. In January 2005, the newly developed
mCLASS: Reading 3D assessment was field-tested in 19 schools. The remaining elementary
schools will receive mCLASS: Reading 3D training in summer 2005. All middle schools
will begin using MAP-R in January 2006.

All TCM elements (Running Records, MAP-R, DIBELS, SDRT, and Reading 3D) will be
carefully evaluated to ensure the reliability and validity of the assessments. The evaluation
of the reliability and validity of the new Reading 3D assessment will be completed by the
Department of Shared Accountability (DSA). This evaluation will examine the assessments'
appropriate alignment with curriculum and instruction, and the usability, overall productivity,
and efficiency benefits. Training activities also will be evaluated. Staff will analyze the
assessment results, perform alignments with other student performance measurements, and
use staff satisfaction surveys to gather user feedback. Additionally, staff will continue to
gather feedback on the assessment's usability and monitor feedback from other school
systems and statewide initiatives.

• Where does the TCM initiative fit within MCPS technology priorities? The MFP committee
had been told that the Data Warehouse project was the Board's highest priority.

The TCM initiative is an important strategy in the MCPS Strategic Plan, Our Call to Action:
Pursuit ofExcellence. The rCM initiative supports the delivery of an effective instructional
program. The time savings and operational efficiencies garnered by rCM enable teachers to
focus more time on the specific instructional needs of each student and enhance and
complement the objectives of reduced class size initiatives. TCM is based on the specific
goal of providing teachers with the best r~sources available to improve their classroom
instructional practices and support the curriculum. The automation being used in TCM is
similar to the technology advances in the medical industry and other private and public
enterprises that require immediate access to records coupled with a system of monitoring
progress.

The rCM initiative is a crucial component of the strategies to ensure an effective

instructional program because it provides student performance data in real time as a teacher
diagnoses what a student knows and is able to do each day throughout the school year. This
."" is enhanced by integrating data into the Data Warehouse to present teachers and principals
with a comprehensive view of student, class, and school achievement data and the progress
that is being made. The speed and ease of data retrieval provides teachers and administrators
with critical information to better align instructional strategies with student needs.
 3

• The committee was told that a handheld device (specifically the Palm Pilot) was necessary
because of the digitized technology. It is unclear what this statement means as computer
programs also provide for digital technology. It appears that the WGEN program is linked
to the Palm technology, but it is unclear why MCPS could not have requested a computer
enabled program, thereby avoiding the costs for handheld devices. No information was
provided on the long-term costs ofequipment maintenance and replacement.

There is currently no technology application delivered through a desktop or laptop computer

that facilitates the administration of Running Records, DIBELS, or the MCPS Assessment
Program for Primary Reading (M:CPSAP-PR). Observational assessments, such as the
assessments MCPS uses in early childhood classrooms, are not appropriately administered on
desktop and laptop computers since the device supporting observational assessments must be
unobtrusive and not create any barriers between teacher and student during the assessment of
these young readers. In addition, Wireless Generation holds the exclusive worldwide rights
to implement the DIBELS assessments on a handheld device or any other mobile technology.

• It appears that MCPS did not use a formal procurement solicitation process prior to the
signing of any agreement with WGEN Mr. Porter indicated that he sent out requests to
vendors, but that he did not do an RFIor RFP. There also is some question as to when and
how the Board ofEducation reviewed and approved this agreement with WGEN Not having
seen the signed, final agreement it is unclear ifit indicates that implementation is contingent
on funding approval. I have asked MCPS staff to provide the Council with information on
both issues.

The licensing of all paper-based and technology-enhanced assessment materials is contingent

on funding approval. The Board gave initial funding approval to pilot the technology­
enhanced assessments in July 2004. Wireless Generation· holds the exclusive worldwide
rights to implement the DIBELS assessments on a handheld device or any other mobile
technology, and their product specifically supports the administration and reporting of
observation-based reading assessments currently administered by MCPS. In addition, they
were the only known vendor providing bidirectional synchronization of student and
assessment data, which dramatically reduces the time needed to input student data. Materials
of instruction are not required to be bid. Because Wireless Generation has exclusive rights to
implement the DIBELS assessments on a handheld. device. there was no other vendor who
would have been in a position to respond to an RFP.

• MCPS reports the FY 2005 costs for the TCM initiative to be $],002,671. These costs are
_. being charged to Category 5 ("Other Instructional Costs "). Because the Council did not
approve these funds in its appropriation to MCPS, the school system is now projecting that
category will be in deficit by the end of the fiscal year. In his March financial report to the
Board, the superintendent indicates he expects to offset this deficit with a corresponding
surplus in Category 4 ("Textbooks and Instructional Supplies ''). This surplus as well as the
surplus in "Instructional Salaries" results from a lower-than-projected student population
 4

for SY04-05. By entering into this arrangement, MCPS has decreased the amount ofsavings
available for FY06 funding and expended funds in FY05 that would exceed categorical
authority. The Board has not submitted to the Council a request for a categorical transfer in
a timely manner. This failure to request a categorical transfer is hard to understand given
that the Board requested and received a supplemental appropriation of $3.3 million in the
fall for increased utility costs, based on projections that that account would be in deficit by
the end ofthe year.

The superintendent of schools submits a monthly financial report to the Board of Education
from November through June of each fiscal year. Ibis report projects spending through June
30 for each state category and reports on the reasons for any surplus or deficit in a category.
The monthly financial report is available to the public and is published on the MCPS Web
site. The Board of Education reviews this report each month during its regular meeting and
may suggest necessary course corrections in regard to potential deficits. In this instance the
superintendent reported a potential deficit in Category 5 Other Instructional Costs related to
the TCM project in the report based on October 31, 2004, data. The report was submitted to
the Board of Education and reviewed at the December 14, 2004, meeting.

The monthly financial report regularly reports potential deficits in various categories,
although the budget as a whole seldom has had a projected deficit. The Council's Education
Committee periodically reviews the report and makes suggestions for operational changes.
In the past, the Board of Education has paid careful attention to any recommendations from
the Education Committee. For example, when the Education Committee strongly objected to
deficits in Category 6 Special Education that resulted from legal costs, the Board of
Education completely revamped how it managed special education legal operations.

The Education Committee has usually decided that any necessary categorical transfers should
occur at the end of a fiscal year when the exact amount of any deficits is known. During FY
2001, MCPS reported a potential deficit of $850,000 in Category 5 Other Instructional Costs
due to expanded programs for staff development. The Education Committee and the full
Council recommended that the Board of Education request a categorical transfer to cover this
potential deficit. The Council, however, decided not to approve the request and to wait until
the end of the fiscal year to make a transfer. Ultimately, the deficit in this category was only
$200,000. Had the Council gone through with a categorical transfer as originally planned, it
may have been necessary to reverse part of that transfer at the end of the year.

• The Council wasn't informed prior to MCPS embarking on an expensive new initiative that
-;:" has long-term fiscal implications. It seems to me that if MCPS embarks on a new program or
initiative knowing it will be running a deficit in one category and surpluses in another
category to cover these costs, it should request a category change prior to embarking on the
program.
v
('
5

When MCPS initiates a new or expands a program or initiative, staff reviews the financial
monitoring reports and determines whether a review by the Education Committee or a
categorical transfer request is appropriate. When asked by the Education Committee or the
Council, the Board of Education has requested categorical transfers in the past if it was
undertaking a new or expanded program that might result in a categorical deficit. It does not
object to following this practice in the future.

• Is the use ofthese devices being required ofteachers or is there the hope that they'll see the
ben.efits oftheir use and want to use them? If they are not being required, how do we know
that they indeed will be well-used and not just stuffed away in a drawer?

Using the technology-enhanced assessments is mandatory, and their use for benchmarking
and monitoring progress determines how frequently each assessment is admi.riistered. The
data are immediately available online and in the instructional management system so
administrators are able to monitor usage to ensure fidelity in the implementation of
assessments.

• The planned evaluation appears to measure the alignmen.t of this program with other
assessments and measures of user satisfaction. My question would more directly be, how
does this improve student achievement and is there going to be any effort to determine how
this expensive program affects student achievement?

Providing the effective technology to improve, support, and simplify the work of teachers
and principals in the delivery of instruction, administration of assessments, and monitoring
student progress will increase the achievement of all students. The use of technology to
administer assessments provides easy access to intuitive information for staff to understand
more efficiently the instructional needs of individual students. Real time assessment data is
collected easily through the use of handheld devices or computers and is accessible instantly
for teachers and administrators. Reports based on the assessment data can be created,
printed, and shared with students and parents.

Technology facilitated assessments will be carefully evaluated to ensure reliability and

validity. Tbis evaluation also will examine the assessments' appropriate alignment with
curriculum and instruction, and the usability, overall productivity, and efficiency benefits.
Training activities also will be evaluated. Staff will analyze the assessment results, perform
alignments with other student performance measurements, and use satisfaction surveys to
gather user feedback.

• Mr. Knapp asked about how long it usually takes teachers to become comfortable using the
han.dheld-based assessments and the available training supports to facilitate teacher usage.

Teachers are ordinarily able to start using the technology-enhanced assessments immediately
following training. Handheld technology was piloted in eight schools during the spring of
 6

2004. Pilot feedback was used to design the training that was delivered to 19 schools during
the fall of 2004. The Technology Consulting Team. monitors the usage of the new
technology and works with school-based reading specialists and staff development teachers
to provide direct, school-based support when needed. During the summer 2005, all
elementary schools will receive training on using the full compliment of technology­
enhanced assessments to support the school system's continued focus on the broader K-2
reading program.. Follow-up training will occur soon after school resumes to provide
additional support for new teachers and for refreshment training. Technology Consultants
continue to be available to support schools, groups, and individual teachers when requested.

• Councilmember Praisner has requested additional information on the Montgomery County

Public Schools (MCPS) Entrepreneurial Activities Fund, including a copy offormal Board
policy related to the.fund.

On October 27, 1997, the Board of Education adopted a resolution to establish the
Entrepreneurial Activities Fund as follows:

Resolved. That the Board of Education establishes an enterprise fund for the sale of
science materials kits sold through the Taylor Science Materials Center and that the
school system pursues other efforts with similar organizations to sell other products
and materials.

A copy of the minutes of the relevant section of the October 27, 1997, Board of Education
meeting and a copy of the fund's fiscal policy statement are enclosed.

As part of the resolutions to establish the Entrepreneurial Activities Fund, the Board of
Education established specific criteria for additional activities eligible for inclusion in the
fund. These criteria are included in the enclosed minutes. They obligate the superintendent
of schools to ensure that such activities "are exemplary and for which there is a market
demand. Selling services and material should reflect positively on the system." The Board
also required that such activities "not interfere with the basic educational mission of the
school system."

Since 1997, the Board of Education has annually reviewed the activities of the
Entrepreneurial Activities Fund to make sure that they comply with the established criteria.
Additional activities have been added as appropriate. At the initiative of the County
Council's Education Committee, the Board of Education added County Government print
;"" shop activities to the fund in FY 2000.

The superintendent of schools also has established fiscal policies for the fund as reported to
the County Council. The Management and Fiscal Policy Committee reviewed these fiscal
policies for all county enterprise funds on July 7, 2003, and July 1, 2004. A copy of the
Council packet for the latter meeting is enclosed.
 ~-----­

"",­

",
Description of Reading Assessment Initiatives

Provides simple probes Administered with handheld device, replaced prior

to screen for reading paper/pencil administration of assessment. Web based
difficulties and monitors data reports enable access to real time data.
student ro ress.
mCLASS; Reading Enables teachers to Throughout Administered with handheld device, replaced prior
capture running records year on a paper/pencil administration of assessment. Web based
data. Integral progress data reports enable access to real time data.
component of balanced monitoring
literac ro ram. basis.
mCLASS:
Hybrid assessment Three times a Grade K - 2 Administered with handheld device, replaced prior
Reading 3D
consisting of 5 subtests ye9f. students paper/pencil administration of assessment. Web based
from MCPS AP-PR and 5 (FY 06) data reports enable access to real time data.
subtests from DIBELS.
Measurement of Computer adaptive Three times a Grade 3 -,5 Browser based assessment accessed through Internet
Academic achievement test year. students connected computer. Students sit at computers,
Progress ­ providing results in answering questions and inputting answers via
Reading (MAP-R) reading skill areas. keyboard. Data is available within 24 hours via
Extension of MCPS
Assessment Program to
ITwice a year , Grade 6 - 8
(FY 06)
Internet. Provides consistent scale to measure reading
progression on a long term basis.
upper elementary and
middle school.
,Stanford Diagnostic reading test Twice a year Selected Currently administered paper and pencil. Scored by
Diagnostic to diagnose students' struggling vendor and scores sent to individual schools.
Reading Test strengths and readers ApproXimately a 4 week turnaround for scores. An
(SDRT) weaknesses in reading (Grades 3 - 9) electronic version of assessment, enabling quick access
skills. Enables teachers to data is being reviewed.
to better plan reading
,instruction for
struoolino students.

~/Qrnr::
Board Minutes - 48- January 14, 1997

RESOLUTION NO. 29-97 Re: ENTERP~SEFUNDS

On motion of Mr. Felton and seconded Ms. Signer, the following resolution was acfopted
unanimously: .

Resolved, That the Board of Education schedule time to discuss the establishment of an
enterprise fund that would deal wi~h evaluation, training and development, educational
materials, and software applications as it relates to our system, and thatthe superintendent
be requested to assist in the development of a plan.
/

Board Minutes - 16- October 27, 1997

Re: DISCUSSION ON THE ESTABLISHMENT OF FUND FOR

ENTREPRENEURIAL lNITIATIVES

Dr. Vance invited Mr. Larry A. Bowers, chief financial officer, and Dr. Mary Helen Smith,
associate superintendent for the Office of Instruction and Program Development, to the
table for this discussion of enterprise programs.

Dr. Vance stated that on January 14, 1997, the Board of Education requested time to
discuss the establishment of an enterprise fund that would deal with evaluation, training
alld qevelopment, educational materials, and softvvare applications as it relates to our
system, and that the superintendent be requested to assist in the development of a plan.
In responding to the Board's request, staff first discussed the scope of the review and the
definition of entrepreneurial programs for public school systems. In reviewing activities in
other school systems as well as the preliminary work oUhe Budget Review Committee's
subcommittee on entrepreneurial programs, there is a broad definition used by other
school systems for entrepreneurial programs. However. forthe purpose of this discussion,
the definition will be limited to the sale of products or services produced as part of the
educational process or in support of the educational process (e.g., instructional materials,
curriculum guides. other print and electronic media, instructional software, and services)
to other school systems or government aGencies. .

Mr. Bowers summarized some options considered prior to making a recommendation. A

couple of the current MCPS activities and programs that ar-e o.f interest to other school
systems are: (1) Event-Based Science, a curriculum development project that is fully
supported by the National Science Foundation, and (2) the Taylor Science MaterialS
Center's provision of complete sets of science materials for MCPS elementary school
teachers. .

In deciding whether to embark on a plan to market MCPS expertise, services, and

materials, the following basic criteria must be considered:

1. The effort must not interfere with the basic educational mission of the school
system. Marketing activities cannot take available resources away from
classroom instruction. In addition, these activities cannottake staff members
away from their focus on the needs of MCPS students and the Success for.
Every Student Plan.
 Board Minutes -17- october 27, 1997

2. The activity must at least break even and should show a reasonable profit.
In fact. any endeavor must be more than worthwhile so that the revenue
generated is significant enough to illustrate beyond any doubt that it is not
interfering with the primary business of the school system.

3. The school system must be able to illustrate that the activity has a direct
positive ,effect on enhancing the support of the instructi6nal program in
MCPS.

4. The school system should only market goods and services that are
exemplary and for which there is a market demand. Selling services and
materials should reflect positively on the system.

5. The resources needed to start up an enterprise activity cannot be taken from

ongoing instructional programs supported by the general fund.

6. Activities that are generally done by school systems through professional,

courtesy or collaboration should not be redirected to an enterprise activity.
MCPS currently receives materials and resourQes from other school systems
atthe nominal cost of reproduction. We ne'ed to continue to respond to other
school systems in the same manner.

Any entrepreneurial initiative must not ta,ke MCPS staff or other resources away from our
primary focus of providing a quality education to students in the county. It is suggested that
we focus our efforts on selling existing MCPS expertise and services. What MCPS has
that is of the greatest value to other school systems and organizations is our expertise.
We have a great deal of expertise in areas'such as test development, surveying, and
training. However, the infrastructure_:is not in place to support marketing these services to
'other school systems. To be successful. we would need not only the capital investment
to start up these p'rojects; we also would need to hire staff who could focus all of their
efforts on these activities. The activities themselves would have to be self-supporting from
the beginning in order not to drain resources away from our instructional programs and
services.

Mr. Felton was Very excited about the discussion on the establishment of a fund for
entrepreneurial initiatives. He had talked to staff about the concept, and he hoped that his
colleagues were also enthusiastic about this project. It is important to establish the fund
_' and then continue to develop it consistent with the policies and philosophy of MCPS. He
agreed that there is tremendous talent within MCPS in developing curriculum. guides. and
training. He agreed that staff should not be pulled from their jobs. The establishment of
the fund will allow the school system to begin in a direction that is innovative and exciting.

Mrs. Gordon was as excited as Mr. Felton that the school system is moving forvvard to
establish such' a fund. The more staff looks outside Montgomery County the more they
 Board Minutes - 18 - October 27. 1997

understand that there are many 'ways to be creative, and there is no need to create
everything itself. She agreed that ~xisting staff should not be ).1sed for entrepreneurial
enterprises, and staffing could be covered by the fund itself. She was intrigued by the
opportunity to look at staff development in a creative vyay. During the NFUSSD
Conference, they visited a center that had dedicated staff development space for the
training of staff as well as future employees. A number of years ago there was the
"University of Montgomery County where MCPS offered courses for credit to employees
II

in order for them to keep current with certification requirements; this could be reinstated
as an entrepreneurial initiative for staff development.

Ms. Gutierrez thought the establishment of a fund for entrepreneurial initiatives was an
excellent first step; however, the school system should be cautious since MCPS is
traditionally a service organization which is very different from a business organization.
The first step is to develop a solid cost model using the costlcenter approach. The concept
of being a fee-for-service would serve the school system well, and it would help MCPS
understand the costs of all its functions. MCPS should also include in the establishment
of a fund for entrepreneurial initiatives a rigorous definition of a cost model.
Ms. Signer agreed with her colleagues that this is a terrific idea. and she hoped that the
school system would see it through to fruition. She questioned whether the establishment
of a fund forentrepreneurial initiatives could be done as an enterprise fund. MCPS uses
enterprise funds to charge fees to offset services provided to the school system's students,
and that is clearly within the mission of a 501 (c)(3) organization. It has been her
experience in other501 (c)3 organizations that profit-making issues need to be spun-offinto
a separate corporation because of the tax consequences; therefore, publications and
training are spun-off into these corporations. She thought MCPS needs to pursue more
carefulJywhetherthe establishment of, a fund for entrepreneurial initiatives can be done as
an enterprise fund or whethe-r it needs to be'spun off right away. Mr. Bowers replied that
she was absolutely right, and there would eventually be a need to find another structure.

Mrs. King was excited about the proposal. The enthusiasm of staff makes MCPS stand
out above others and the establishment of a fund for entrepreneurial initiatives will continue
that excitement. .

Dr. Cheung was pleased to see the concepts introduced for the establishment of a fund
for entrepreneurial initiatives. It is important how the school system encourages
innovation. Entrepreneurial means some incentive or benefit to the innovator or cr~ator.

.Mr. Ewing thought the establishment of a fund for entrepreneurial initiatives is an

~. :interesting idea. He believed the Board should take seriously deciding whether to embark
on a plan to market MCPS expeliise, services, and materials, according to the basic
criteria suggested by Dr. Vance. If the Board moves ahead with the establishment of a
fund for entrepreneurial initiatives, there needs to be a way of assessing the burdens
placed on staff that go beyond their normal duties. His view was that MCPS already asks
staff to do more than is reasonable. and the likelihood is strong to hire staff to focus on
-

Board Minutes - 19 - October 27, 1997

these activities and be paid through the proceeds of sales of services. The school system
still has the obligation to oversee the enterprise to ensure efficiency in budgeting and
accounting. He cautioned the school system on spending resources that are in short
supply to establish a fund for entrepreneurial initiatives.

Mr. Felton encouraged staff to not take time from the classroom as education is the
primary business of the school system. But, he chaJlenged all staff to identify those
products and services that have potential for entrepreneurial initiatives.

RESOLUTION NO. 636-97 Re: ESTABLISHMENT OF FUND FOR ENTREPRENEURIAL

INITIATIVES

On recommendation of the superintendent and on motions of Ms. Signer and Mr. Ewing
seconded by Mrs. King, the following resolution was adopted unanimously:

Resolved, That the Board of Education establishes an enterprise fund for the sale of
science materials kits sold through the Taylor Science Materials Center, and that the
school system pursues other efforts with similar organizations to sell other products and
materials; and be it further

Resolved, ~hat the Board of Education instructs the supel-intendent to assess this
approach using the following basic criteria:

1. The effort must not interfere with the basic educational mission of the school
system. Marketing activities cannot take available resources away from
classroom instruction. In addition, these activities cannot take staff members
away.f-l=Qf.A- tf-le.it f.Q.GlJS OR th€Hie€QS of MCP-S st-udents and tRe £UCGess for·
Every Student Plan.

2. The activity must at least break even and should show a reasonable profit.
In fact, any endeavor must be more than worthwhile so that the revenue
generated is significant enough to illustrate beyond any doubt that it is not
interfering with the primary business of the school system.

3. The school system must be able to illustrate that the activity has a direct
positive effect on enhancing the support of the instructional program in
. MCPS.

4. The school system should only market goods and services that are
exemplary and for which there is a market demand. Selling services and
materials should reflect positively on the system.

5. The resources needed to startup an enterprise activity cannot be taken from

ongoing instructional programs supported by the general fund.
Board Minutes - 20 - October 27, 1997

6. Activities that are generally done by school systems through professional

courtesy or collaboration should not be redirected to an enterprise activity.
MCPS currently receives materials and resources from other school systems
atthe nominal cost of reproduction. We need to continue to respond to other
school systems in the same manner. .
 Entrepr~neuriaI Activities Enterprise Fund

1. Fund Manager-Mr. Larry A. Bowers, Program Manager

2. Purpose of Fund-The purpose of the Entrepreneurial Activitie~ Fund (EAF) is to

provide supplemental funding to enable the school system ~o enhance its services and
support the in$tructional program through the sale of MCPS expertise, services, and
products. The fund serves as the main focal point to organize marketing efforts, identify
and mobilize staff resources and expertise, plan and implement revenue-generating
activities,' and identify and secure start-up capital necessary to expand the program with
additional revenue generating activities. .

3. Scope of activities included or excluded-Activities that the fund is currently conducting

include the Taylor Science Materials program, Printing and Graphic Services, and
entrepreneurial activity development.

4. Anticipated annual level ofrevenue and expenses-$1,050,OOO

5. EXisting legal requirements or constraints, such as bond covenants-Not applicable

6. Fund balance reserve requirements-None

7. Corrective steps to be taken to correct fund balance deficit:

• Increase current volume of science kits marketeq and sold through the Taylor
Science Materials program
• Increase marketing of printing services provided to outside customers.
• Establish new activities that, when fully implemented, will generate enough revenue
that the activity will contribute to reducing the deficit and enhance the instructional
program.
• Market and sell only goods and services that are exemplary in demand and reflect
positively on the school system.

8. Policies and procedures for setting fees and charges-.This program must operate within
the confines of appropriate federal, state, and county laws regarding taxing, funding, and
expenditures for public sector activities of this nature.

9. Other relevant policies or comments--None