Memorandum

To: Members of the Board of Education

From: Gary S. Mathews, Superintendent

Date: March 8, 2011

Re: Recommendation for FY 2011-2012 Budget Reductions Following BOE

Planning Meeting of 2/25/11--$8,269,688 (inclusive of the previously BOE-
approved 3-tiered student transportation system with an estimated savings of
$1,477,441)

OBJECTIVES FOR FY 2011-2012 BUDGET REDUCTION PROCESS:

As noted in my letter of January 18, 2011, addressed to our personnel and community, the
following objectives have guided our budget reduction process:

 To provide the best education possible given significant changes in the school system‘s
operations due to a substantial reduction in financial resources.

 To align the organization with available financial resources or revenue.

 To identify ―educational opportunity‖ out of ―budget crisis‖ wherever possible using

available data and/or research.

RECOMMENDATION:

Following a Stakeholder Survey of Possible Major Budget Reductions for 2011-12 involving
Teachers Forum representatives, a PTO Presidents‘ Roundtable, each of 24 School Councils
made up of business/parent/employee representatives, and an online public survey with over
2,700 respondents, and following an all-day BOE Planning Meeting on February 25, 2011, at
which the administration sought and received BOE guidance, the Superintendent recommends
the following budget reductions for the upcoming school year at this time:

1. Change high school scheduling to a seven period day to include

remediation/enrichment for students. (Item #1 on survey) – Savings = $2,820,000
Stakeholder Response:
Teachers Forum (SA—1.4); PTO Presidents (SA—1.3); School Councils (SA—1.5); Online Public Survey (A—2.6)
Description: This is a traditional high school schedule with year-long courses and a
seven period day for students. This would eliminate 12 teaching positions at Eastside, 17
teaching positions at Newton, and 18 teaching positions at Alcovy for a total of 47
positions. The estimated average savings for salaries and benefits for each position is
$60,000. (Educationally, this will allow for a ―Focus‖ period for those students who may
be struggling and in danger of not graduating. Thus, some students will take seven
Superintendent Memo to BOE re: FY11-12 Budget Reductions
March 8, 2011
Page 2

classes for credit, while others will take 6 for credit and a ―Focus‖ period to shore up
necessary skills for graduation. Advanced students will have the option of a ―Focus‖
period for further preparation/study or a full schedule of seven classes, each for credit.
Union Grove High School in neighboring Henry County, Georgia, is one of Newsweek’s
―Best High Schools in America‖ for the past five school years, and is the ―model‖ for this
schedule.) Among the educational advantages of the 7-period day are the following: (1)
best suited for increased mathematics achievement given a year-long opportunity for
students to master content and skills, (2) best suited for the mastery of a foreign
language—written and spoken, (3) best suited for students who will take college-level
Advanced Placement (AP) exams given that these are administered in the spring aligned
with when the student will complete the AP course, and (4) avoids the compression of a
year-long course into a semester, especially onerous for struggling students and does not
harm the advanced student—e.g., Berkmar High School in neighboring Gwinnett County,
Georgia, is on a traditional 6-period day with intentions to move to a 7-period day and
has been declared an ―Inspiration Award Winner‖ by the College Board for its students‘
exceptional gains on college-level Advanced Placement exams over the past five years.
Among the educational advantages of the ―Focus‖ period resident within the 7-period
day—as explained by Union Grove High School representatives at the February 8th work
session of the Newton County Board of Education—are: (1) mandatory tutoring during-
the-school-day for students who are in danger of not graduating, (2) optional tutoring
during-the-school-day for students who desire additional academic help, (3) credit
recovery, (4) retesting opportunities, (5) general enrichment, and (6) AP tutoring. It
should be noted that the research on high school scheduling is ―inconclusive,‖ i.e., it does
not seem to matter which particular schedule students and teachers are on when it comes
to student achievement. What does seem to matter when it comes to student achievement
is the overall quality of teaching and how the time available in a given class period is
used. Additionally, the results in NCSS over the past five years for the college-entrance
exams known as the ACT and SAT do not warrant further allegiance to the 4X4 block.

2. Contract with Ombudsman to provide a new—and potentially more educationally

effective—delivery model for alternative education in NCSS. (Item #2 on survey)—
Savings = $1,941,962
Stakeholder Response:
Teachers Forum (SA—1.6); PTO Presidents (SA—1.2); School Councils (SA—1.8); Online Public Survey (A—2.0)
Description: Ombudsman is a division of Educational Services of America (ESA), the
nation‘s leading provider of K-12 alternative education schools and programs. They are
currently serving 23 school systems in Georgia and many others throughout 16 other
states. Achievement, attendance, graduation, and behavior data over the past five years
for Sharp Learning Center—current alt-ed program in NCSS—indicate that the program
is not optimally effective and that there is a need to find a way to better serve these
students regardless of budget savings. (Confirmed by the Office of Student Services on
February 16, 2011, the enrollment at Sharp was 138 students. With a general fund budget
for Sharp of $3,187,462, the cost for the Sharp program is: $23,098 per pupil. Contrast
that to the general fund per pupil cost of $7,432 for all students in NCSS combined.
Superintendent Memo to BOE re: FY11-12 Budget Reductions
March 8, 2011
Page 3

Spending, then, for the Sharp program in the school system is 3X more than the per pupil
spending for the district-as-a-whole. Even with a hypothetical enrollment of 200 students
at Sharp, the per pupil cost would still be more than 2X that of the per pupil spending for
the district-as-a-whole. At a cost of approx. $6,228 per pupil and positive student
indicators in Ombudsman programs around the nation, Ombudsman portends to be most
―cost effective‖ for NCSS in the truest sense of the term. Ombudsman will provide
NCSS with 200 student slots at a total cost of $1,245,500 or $6,228 per pupil.) Among
the advantages for changing to Ombudsman are: (1) a true ―alternative‖ to traditional
schooling for students who often need a different educational environment [attractive
office-like store-front centers, one to be located in west Newton County and one to be
located in east or central Newton County] and mode of delivery [a combination of
individualized, small-group, and technology-driven instruction], (2) an Individualized
Learning Plan (ILP) developed for each student with pre-assessments to determine
―where the student is‖ academically before instruction begins, (3) 6-12 coursework/study
in Reading, Writing, Mathematics, Science, Social Studies/Citizenship, College/Career
Prep, Health/Recreation, and Aesthetics and Life Management, (4) self-paced curriculum
delivery, (5) counseling, (6) community service projects/service learning/social skills
development, career and college prep, and (7) ongoing communication with parents and
the school system regarding a student‘s progress. Ombudsman offers both a regular high
school diploma (with required Georgia assessments) and an ―Ombudsman‖ diploma at
the school system‘s discretion. Ombudsman is fully accredited by the Middle States
Commission (MSCES), the North Central Association of Schools and Colleges (NCA),
the Southern Association of Colleges and Schools (SACS), and AdvancED Accreditation
Commission (AdvancED). Finally, two on-site visits of 3 Ombudsman Centers in
neighboring Douglas County, Georgia, confirm the quality environment and effective
―alternative‖ mode of instructional delivery given interviews with students, teachers,
directors (principals), and Ombudsman officials. Since 1975, Ombudsman has
effectively and efficiently served over 130,000 at-risk students throughout the United
States.

3. Reorganize and reduce maintenance and custodial staffs. (Item #5 on survey) –

Savings = $954,000
Stakeholder Response:
Teachers Forum (SA—1.9), PTO Presidents (SA—1.7), School Councils (SA—1.6), Online Public Survey (A—2.5)
Description: Reduce custodial workdays from 234 to 224 ($120,000); eliminate 3 high
school facility coordinator positions ($158,000); downgrade 3 custodial positions at the
central office, service center, and Mainstay from grade 7 to grade 4 ($37,500); and
eliminate 29 custodial positions at the schools ($638,000).
Superintendent Memo to BOE re: FY11-12 Budget Reductions
March 8, 2011
Page 4

4. Reduce the 1% Board contribution to the 403b retirement plan for Teachers
Retirement System employees to .5%. (Item #9 on survey) –Savings = $422,000
Stakeholder Response:
Teachers Forum (D—4.0), PTO Presidents (U—3.3), School Councils (U—3.1), Online Public Survey (U—3.6)
Description: The Board has traditionally contributed to a retirement plan for employees
as the Newton County School System does not participate in the Social Security System.
Employees can continue to make contributions to the plan on a voluntary basis. In
making this recommendation, the administration chose not to recommend Item #6 from
the stakeholder survey (―Reduce the school year by one day for students and reduce
employee work days—non-school days—by one additional day.‖) It is our view that our
employees, who maintain positions in NCSS, can ill afford additional furlough days.
And, even though all stakeholder groups registered ―Agree‖ with the elimination of two
more days, the administration recommends that the Board give employees a choice, i.e.,
put their dollars into the 403b maintaining a 1% contribution annually or keep their
dollars for monthly expenses.

5. Eliminate two Assistant Principal positions. (Item #10 on survey) –Savings =

$215,000
Stakeholder Response:
Teachers Forum (SA—1.8), PTO Presidents (SA—1.7), School Councils (SA—1.8), Online Public Survey (SA—1.8)
Description: This would eliminate one A.P. position at Alcovy High School and one A.P.
position at Newton High School. (Each high school retains 4 Assistant Principals.)

6. Reduce the number of school resource officers (security) from 18 to 14. (Item #11 on
survey) –Savings = $171,428
Stakeholder Response:
Teachers Forum (SA—1.8), PTO Presidents (A—2.1), School Councils (SA—1.6), Online Public Survey (A—2.3)
As was noted on this Item #11 of the survey, there is also savings from the elimination of
the SRO position at Sharp Learning Center should the program dissolve. As the
administration‘s recommendation is to contract with Ombudsman for alternative
education services thus dissolving the program, it is recommended that the SRO position
at Sharp be eliminated from the budget at an additional Savings = $42,857.

7. Require a 10% cut in all Central Office budgets. (Item #12 on survey) –Savings =
$160,000
Stakeholder Response:
Teachers Forum (A—2.1), PTO Presidents (SA—1.7), School Councils (SA—1.4), Online Public Survey (SA—1.8)
Description: The calculation for this amount does not include software and equipment
maintenance fees and other contractual obligations which are required for continued
efficient operation.
 Superintendent Memo to BOE re: FY11-12 Budget Reductions
March 8, 2011
Page 5

8. Combine Newton College and Career Academy CEO and Director of Career,
Technical, and Agricultural Education (CTAE) positions. (Item #13 on survey) –
Savings = $65,000
Stakeholder Response:
Teachers Forum (SA—1.7), PTO President (SA—1.5), School Councils (SA—1.2), Online Public Survey (SA—1.8)
Description: The career academy is scheduled to open in January, 2012, and this would
save half of one year‘s cost of the CEO position (salary and benefits) for the academy.

BACKGROUND:

At present, local revenue for the Newton County School System is projected to decline by an
estimated $6.5 million for the school year 2011-12, and state revenue could decline by as much
as $3.1 million given the most recent indications from the state. Additionally, federal ARRA
funds used for school-based positions in the amount of $1.9 million will no longer be available.

CAVEATS:

1. See the attached chart with projected ―Ending Fund Balances‖ for 2011-2012, 2012-
2013, and 2013-2014. As noted on this chart: ―While few, if any, know with certainty
what the local, state, and national economy will be like over the next three school years,
this projected negative ending fund balance for 2013-2014 assumes no more/no less
revenue when compared to 2012-2013. In order for the school system to present a
‗minimalist‘ (and arguably ―insufficient‖) ending fund balance of $4,461,865 in 2013-
2014, a budget cut of $6,551,600 would need to occur following the 2012-2013 school
year.‖

2. Actions taken by the Newton County Board of Education to reduce the 2011-2012 budget
on March 8, 2011, may be only round one of budget reductions for 2011-2012 depending
upon future actions taken by the Georgia General Assembly and the U.S. Congress. If
such future actions by lawmakers result in still additional loss of revenue to NCSS, it is
inevitable that the superintendent will return to the Board of Education with
recommended further cuts to the 2011-2012 budget.